Banking Awareness

Q1. Interest on the savings bank accounts is compounded ____?
(a) Daily
(b) Yearly
(c) Quarterly
(d) Half-yearly
(e) All of the above
Q2. The Head of Reserve Bank of India is?

(a) Chief Executive Officer
(b) Managing Director
(c) Chief Banking Officer
(d) Governor
(e) Other than the given options
Q3. Who supplies interest-charts for different maturities and for different rates
of interest?
(a) IBA
(b) RBI
(c) Government of India
(d) IBRD
Q4. Rates of Interest on deposits are determined by ____?

(a) IBA
(b) Ministry of Finance
(c) The Bank Itself
(d) Government of India
Q5. Current account becomes dormant when there are no withdrawals for the
last _____?
(a) 3 months
(b) 6 months
(c) 24 months
(d) 12 months
Q6. One rupee notes bear the signature of..........?

(a) Governor of Reserve Bank of India
(b) Prime Minister of India
(c) President of India
(d) Secretary, Ministry of Finance (Government of India)
Q7. Mortgage is a..............?

(a) security on movable property for a loan given by a bank
(b) security on immovable property for a loan given by a bank
(c) concession on immovable property for a loan given by a bank
(d) facility on immovable property for a loan given by a bank
(e) security on immovable property for a deposit received by a bank
Q8. In terms of Section 5(1) (5) of the Banking Regulation Act, 1949, a ‘banking
company’ means any company which-
(a) accepts deposits from the public
(b) undertakes lending of money
(c) transacts the business of banking in
(d) All of the above
Q9. Which of the following is not a negotiable instrument?

(a) Cheque
(b) Pay order
(c) Bill of Exchange
(d) All of the above are negotiable instruments
Q10. Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of
banks have been categorized. Which one of the following statements is not
correct?
(a) Assets belonging to Standard and Sub-Standard category come under category I
(b) Assets belonging to Doubtful category come under category II
(c) Assets belonging to Doubtful and Loss categories come under Category II
(d) Out of total Loan Assets, 90 per cent is Standard and Sub-standard and Doubtful
is 10 per cent this lot comes under Category I
Q11. These days Banks are offering Loans against Property? Under which
business segment, this activity may be categorized?
(a) Corporate Banking
(b) Personal Banking
(c) Merchant Banking
(d) Portfolio Management-Services
Q12. What do we mean by “ECB” in financial terms?

(a) Essential Commercial Borrowings
(b) Essential Credit & Borrowings
(c) External Credit & Business
(d) External Commercial Borrowings
Q13. “Currency Swap” is an instrument to manage ____?
(a) Currency Risk
(b) Interest Rate Risk
(c) Currency and Interest Rate Risk
(d) Cash Flows in different currencies
Q14. “Plastic Money” denotes ________?

(a) Bearer cheque
(b) Credit card
(c) Demand Draft
(d) Traveller’s cheque
(e) Gift cheque
Q15. RBI has recently introduced Cheque Truncation System, which means that
______?
(a) Physical movement of a cheque is stopped between banks and instead an
electronic image be exchanged for clearance of funds
(b) The physical movement of a cheque for clearance of funds be made more
secure
(c) Issue of cheques to customers be made more secure by introducing more
enhanced security features
(d) A new technology to process payments between Banks exclusively
Solutions
S1. Ans.(a)
S2. Ans.(d)
S3. Ans.(a)
S4. Ans.(c)
S5. Ans.(c)
S6. Ans.(d)
S7. Ans.(b)
S8. Ans.(d)
S9. Ans.(d)
S10. Ans.(c)
S11. Ans.(b)
S12. Ans.(d)
S13. Ans.(d)
S14. Ans.(b)
S15. Ans.(a)
Q1. The Economic Survey is compiled by the-
(a) Ministry of Home Affairs
(c) Ministry of Rural Development
(d) Central Board of Direct Taxes
Q2. The economy of India is/are facing which of the following problem/problems now days?
I. Huge trade deficits.
II. Disequilibrium in balance of payments.
III. High inflation and high food and commodity prices.
(a) Only I
(b) Only II
(c) I and III
(d) Only III
Q3. The primary monetary policy technique employed by the Reserve Bank of India is
_________.
(a) Reserve requirements
(b) Open market operations
(c) Discount policy
(d) Margin requirements
Q4. Which of the following terms is not used in Economics or Banking?

(a) Balance of Payment
(b) Call Money
(c) National Debt
(d) Elasticity of Demand
(e) Boyle’s Law
Q5. The Reserve Bank of India is regularly revising upwards the repo and reverse repo rate.
Why is this being resorted to?
(a) To check inflationary pressures in the economy
(b) To curb growth of black money
(c) To encourage rise in interest rates on deposits.
(d) To make bank loan costlier
Q6. ‘Sub Prime Lending’ is a term applied to the loans made to-
(a) Those borrowers who do not have a good credit history.
(b) Those who wish to take loan against the mortgage of tangible assets.
(c) Those that have a good credit history and are known to bank since 10 years.
(d) Those borrowers who are most preferred customers of the bank.
Q7. Expand the term ALM as used in Banking/Finance sector?

(a) Asset Liability Mismatch
(b) Asset Liability Maturity
(c) Asset Liability Management
(d) Asset Liability Manpower
Q8. What is the full form of the term LIBOR as used in financial banking sector?
(a) Local Indian Bank Offered Rate
(b) London India Bureau of Regulations
(c) Liberal International Bank Official Ratio
(d) London Inter Bank Offered Rate
Q9. Basel – II norms are associated with which of the following aspects of the banking industry?
(a) Risk Management
(b) Manpower Planning
(c) Retirement benefits for the employees
(d) Corporate governance
Q10. What is forex?

(a) Buying of foreign currency
(b) Selling of foreign currency
(c) Buying of one currency and selling of another currency
(d) Simultaneous buying of one currency and selling of another currency
Q11. What is stagflation?

(a) Inflation with growth
(b) Deflation with growth
(c) Inflation after deflation
(d) Inflation with recession
Q12. SEBI is a –
(a) Statutory body
(b) Advisory body
(c) Constitutional body
(d) Non-Statutory body
Q13. Which statement is correct for the National Institution for Transforming India, also called
NITI Aayog?
(a) The National Institution for Transforming India, also called NITI Aayog, was formed via a
resolution of the Union Cabinet on January 1, 2015.
(b) NITI Aayog is the premier policy ‘Think Tank’ of the Government of India, providing both
directional and policy inputs.
(c) The Government of India, in keeping with its reform agenda, constituted the NITI Aayog to
replace the Planning Commission instituted in 1950.
(d) All above are true
Q14. As per the new guidelines issued by RBI, the minimum required capital to set up a bank by
corporate is set at _________.
(a) Rs. 600 crore
(b) Rs. 700 crore
(c) Rs. 400 crore
(d) Rs. 500 crore
Q15. The policy of surplus budgeting may be resorted to, when economy is confronted with
_________.
(a) Inflation and is experiencing economic boom
(b) Deflation and unemployment
(c) Recession and unemployment
(d) Depression and low investment
Q1. Signature on Re. 1 note is made by the Finance Secretary but on the other notes by _____?
(a) Prime Minister
(b) President of India
(c) Governor of Reserve Bank of India
(d) Finance Minister
(e) None of the above
Q2. On a cheque instead of two parallel lines only bank’s name is written. It is a _____?
(a) General crossing
(b) No crossing
(c) Payable to bearer
(d) Special crossing
(e) None of the Above
Q3. Which of the following acts as the Regulators for the Credit Rating Agencies in India?
(a) RBI
(b) SBI
(c) SIDBI
(d) SEBI
(e) ARCIL
Q4. The logo of Bank of Baroda is known as ______?

(a) Sun of Bank of Baroda
(b) Baroda Sun
(c) Bank of Baroda’s rays
(d) Sunlight of Bank of Baroda
Q5. One of the major challenges faced by the Banking Industry is Money Laundering. Name the
Act/Norms launched by the banks to curb Money Laundering, in general?
(a) Know your customer norms
(b) Banking Regulation Act
(c) Negotiable Instrument Act
(d) Narcotics and Psychotropic Act
Q6. A cheque becomes stale after _____?

(a) 2 months
(b) 3 months
(c) 6 months
(d) 12 months
Q7. Bank conducts Government business at its branches as an agent of _____?
(a) RBI
(b) SBI
(d) State Government
Q8. Foreign exchange Reserves of India are kept in the custody of ______?
(a) World Bank
(b) International Monetary Fund
(c) Prime Minister RahatKosh
(d) Reserve Bank of India
Q9. What is meant by Repo Rate?

(a) At what rate of interest banks offer the funds to Reserve Bank of India.
(b) At what rate of interest World Bank offer the funds to Central Government for not less than the
period of 364 days.
(c) At what rate of interest banks borrow the funds from Reserve Bank of India for short term
(d) At what rate of interest banks borrow the funds from the other banks for long term.
(e) At what rate of interest central government barrow the funds from the other banks for long
term.
Q10. At present, the Repo Rate is ____?

(a) 6.75 percent
(b) 8.25 percent
(c) 7.00 percent
(d) 6.25 percent
(e) 8.00 percent
Q11. Which of the following products launched by most of the banks help farmers in getting
instant credit for various agricultural purposes?
(a) Kisan Credit Card
(b) Personal Loan
(c) Business Loan
(d) Only (a) and (b)
Q12. Which of the following policies of the financial sectors is basically designed to transferring
local financial assets into foreign financial asset freely and at market determined exchange
rates?
(a) Capital Accounts Convertibility
(b) Financial Deficit Management
(c) Minimum Support Price
Q13. A customer wishes to purchase some US dollars in India. He/she should go to?
(a) Public Debt Division of the RBI only
(b) American Express Bank only
(c) RBI or any branch of a bank which is authorized for such business
(d) Only (b) and (c)
Q14. Which of the following products of a bank is specifically designed to provide financial help
to children in their higher studies in India or in a foreign nation?
(a) Personal Loan
(b) Corporate Loan
(c) Educational Loan
(d) Mortgage Loan
Q15. A Bank/Financial Organisation these days relies heavily on e-commerce for its transaction.
As a part of system security, it has introduced organisation’s security awareness manual. This
step of the organisation can be classified under which one of the following categories of
measures for a business?
(a) Preventive Vigilance
(b) Compliance
(c) Corrective
(d) Detective
Q1. Which of the following is NOT a direct tax?

(a) Corporation Tax
(b) Income Tax
(c) Wealth Tax
(d) Service Tax
Q2. The World Investment Report has been published annually since 1991 by?
(a) UNCTAD
(b) UNICEF
(c) WHO
(d) World Bank
Q3. What is the full form of ‘CORE’ in core banking services?

(a) Channel of Rupee Exchange
(b) Customer Online Realtime Exchange
(c) Centralized Online Rupee Exchange
(d) Centralized Online Realtime Exchange
(e) Customer Online Rupee Exchange.
Q4. Which of the following is not an instrument of money market?

(a) Money funds
(b) Share
(c) Repurchase agreement
(d) Commercial Paper
Q5. RBI was nationalized on -

(a) 1 July 1949
(b) 26 January 1951
(c) 1 April 1935
(d) 1 July 1955
(e) 1 January 1949
Q6. Which of the following is not a function of the RBI?
(a) Maintaining Forex
(b) Deciding Bank Rate, CRR and SLR from time to time
(c) Opening Savings Accounts for general public
(d) Prescribing the Capital Adequancy Ratio
(e) Currency Management
Q7. The names of which of the following rates/ratios cannot be seen in financial newspapers?
(a) Bank Rate
(b) Repo Rate
(c) Statutory Liquidity Ratio
(d) Cash Reserve Ratio
(e) Pulse Rate
Q8. Ten-rupee notes contain the signature of................?

(a) Finance Secretary, GOI
(b) Chairman, State Bank of India
(c) Governor, Reserve Bank of India
(d) Finance Minister, GOI
(e) Prime Minister
Q9. Banking and financial services all over the world are regulated usually by the Monetary
Authority of the land. Who controls this function in India?
(a) Ministry of Finance
(b) SEBI
(c) RBI
(d) IRDA
(e) FEDAI
Q10. For which of the following reasons RBI has decided to undertake mid-quarter policy
reviews?
(1) To re-align its policies
(2) To take steps and ensure smooth flow of credit
(3) To provide guidance to the economy
(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
Q11. In India, National income is estimated by?

(a) Planning commission
(b) Indian Statistical Institute
(c) Central Statistical Organization
(d) National Sample Survey Organisation
Q12. What would be the New Price Index that would measure inflation?
(a) PPI (2011)
(b) CPI (2012)
(c) WPI (2004-2005)
(d) RTI
Q13. Which one of the following is not an objective of fiscal policy of Indian Government?
(a) Full employment
(b) Regulation of Inter-State-trade
(c) Price stability
(d) Equitable distribution of wealth & income
Q14. What is the maximum ceiling on Foreign Direct Investment (FDI) for investment in the
equity of Public Sector Banks in India?
(a) 20%
(b) 26%
(c) 49%
(d) 51%
(e) 74%
Q15. Narrow Money is the term in monetary aggregates, which is represented by?
(a) M2
(b) M4
(c) M1
(d) M3
Q1. Who decides the Base Rate of commercial banks?
(a) RBI
(b) NABARD
(c) SBI
(d) Commercial Bank itself
Q2. M1, M2, M3 & M4 is used to measure-

(a) Unemployment
(b) Industrial production
(c) Loss in Balance of payment
(d) Money supply
Q3. Deflation refers to-

(a) General decline in price of various commodities and services
(b) Price decline in specific sectors.
(c) Price decline in specific commodities
(d) Sharp and sudden decline in foreign exchange reserves.
Q4. Which of the following is not a part of the World Bank?

(a) IBRD
(b) ADB
(c) IDA
(d) IFC
(e) MIGA
Q5. Which of the following articles of the Indian constitution is associated with Union Budget?
(a) 112
(b) 356
(c) 360
(d) 372
Q6. Which of the following statements are true about Indira Awas Yojana?
I. It will provide financial assistance to construct a permanent house for BPL families.
II. 12 crore house will be constructed by 2013-14.
III. Over 60 lakh houses will be constructed form 2009-10 to 2010-11
IV. More than 27 lakh houses will be constructed during 2011-12.
(a) Only I and II
(b) Only II, III & IV
(c) Only I, III & IV
Q7. Which of the following scheme is Rajiv Gandhi’s scheme for empowerment of adolescent
girls?
(a) SABLA
(b) MNREGA
(c) ABLA
(d) IAY
Q8. The headquarter of World Bank is in –

(a) Geneva
(b) New York
(c) Washington DC
(d) Vienna
Q9. Which of the following statements is/are true about the shareholding in the Regional Rural
Bank (RRB)?
I. Central govt. holds 50% stake.
II. RBI holds 50% stake.
III. State government holds 15% stake.
IV. Sponsored bank holds 35% stake.
(a) Only I & II
(b) Only II, III & IV
(c) Only I, III & IV
(d) Only I & IV
Q10. Open market operations of RBI refers to –

(a) Buying and selling of securities
(b) Trading in shares
(c) Auctioning of treasury bills
(d) Selling & purchasing of goods
Q11. Which of the following is called “paper gold”?

(a) Euro
(b) Dollar
(c) Yuan
(d) SDR
Q12. Which of the following is/was not included in the agenda set for the Banking Reforms in
India?
(a) Dismantling of administered interest rates
(b) Measure to strengthen risk management
(c) Promulgation of SARFAESI Act
(d) Promotion of the concept of easy credit to all with a guaranteed subsides from the
government
Q13. Which of the following organizations/agencies is not actively involved in drafting the
Union Budget of India?
(a) The Planning Commission or NITI Aayog
(b) The comptroller and Auditor General of India
(c) Administrative staff of the lok sabha
(d) Ministry of Finance
Q14. In respect of which one of the following area, Y. H. Malegam Committee has submitted its
recommendations?
(a) Interest on Micro Finance loans
(b) Teaser loans
(c) Rural development
(d) Advances to agriculture
Q15. Agriculture Insurance Company of India Limited (AIC) has been formed at the behest of
Government of India, consequent to the announcement by the then Hon'ble Union Finance
Minister in his General Budget Speech FY 2002-03. Where is headquarter of AIC?
(a) Mumbai
(b) Chennai
(c) New Delhi
(d) Lucknow
(e) Kolkata
Q1. In order to attract more foreign exchange the Govt of India decided to allow foreign
investment in LLP firms.What is full form of “LLP” as used in this reference?
(a) Local Labour Promotion
(b) Low Labour Projects
(c) Limited Loan Partnership
(d) Longer Liability Partnership
(e) Limited Liability Partnership
Q2. The process by which a life insurance policyholder can transfer all rights, title and interest-
under a policy contract to a third person is known as?
(a) Assignment of the policy
(b) Hypothecation of the policy
(c) Reinvestment of the policy
(d) Negotiation of the policy
(e) Nomination of the policy
Q3. Which of the following is the popular name of the norms by which a bank satisfies itself
about the customer’s identity and activities?
(a) Basel norms
(b) KYC norms
(c) Service norms
(d) Lending norms
Q4. Today, Banks in addition to normal banking services, offer which of the following services?
(a) Internet Banking
(b) Depository Services
(c) Financial Counselling Services
(d) Only (a) and (b) above
Q5. KYC guidelines followed by the banks have been framed on the recommendations of the?
(a) Ministry of Home Affairs
(b) Ministry of Rural Development
(c) Indian Banks Association
(d) Financial Intelligence Unit
(e) Reserve Bank of India
Q6. As we all know, banks publish their quarterly performance to bring transparency in the
system and also to give a clear picture of their performance to the public. How were results of
Quarter 2 different from the results of Quarter 1 of the listed banks including giants like SBI &
ICICI banks?
(1) Performance was subdued in Quarter 2.
(2) Yields on advances of almost all listed banks have come down.
(3) Advances grew at a slower pace when compared to deposits.
(a) Only (1) is true
(b) Only (2) is true
(c) Only (3) is true
(d) All (1), (2) & (3) are true
Q7. One of the major challenges banking industry is facing these days is deliberate efforts of
some people to bring money earned through illegal activities in circulation. Which of the
following acts has been passed to prevent this activity?
(a) Payment & Settlements Act
(c) Negotiable Instruments Act
(d) Narcotics and Psychotropic SubstanceAct
(e) Prevention of Money Laundering Act
Q8. When a bank returns a cheque unpaid, it is called?

(a) payment of the cheque
(b) drawing of the cheque
(c) cancelling of the cheque
(d) dishonor of the cheque
(e) taking of the cheque
Q9. A bank's 'fixed deposit' is also referred to as a............?

(a) term deposit
(b) savings bank deposit
(c) current deposit
(d) demand deposit
(e) home savings deposit
Q10. Banking Ombudsman Scheme is applicable to the business of __________ .
(a) All scheduled commercial banks excluding RRBs
(b) All scheduled commercial banks including RRBs
(c) Only Public Sector Banks
(d) All Banking Companies
(e) All scheduled banks except private banks
Q11. As per the reports, the collection of direct taxes has gone up by about 19% in last few
months. Which of the following agencies releases the figures about tax collection?
(a) Central Statistical organisation
(b) Reserve Bank of India
(c) Department of Income Tax
Q12. As we know commercial banks accept deposits from the public. What do banks do with
this money?
(a) This is a type of credit creation. Bank gives this on loan
(b) This is an income for the bank
(c) Banks give this money directly to the govt for developmental projects
(d) This money is deposited with the RBI who in turn gives some interest on it banks
Q13. Which of the following in NOT a type of cheque issued by an individual?

(a) Bearer cheque
(b) Order cheque
(c) Crossed cheque
(d) Savings cheque
Q14. Which of the following terms is used in banking?

(a) Vacuum
(b) Power
(c) Density
(d) Credit Card
Q15. “Sensitive Index” of Bombay Stock Exchange is called ……………?

(a) Forex
(b) MAX
(c) LIBOR
(d) Sensex
Q1. National Income of India is estimated by?

(a) Central Estimates Survey Committee
(b) National Sample Survey Committee
(d) Finance Ministry
Q2. Net National Product is equivalent to-

(a) Gross Domestic Product minus Depreciation
(b) Gross National Product minus Indirect Taxes
(c) Net National Income minus Depreciation
(d) Gross National Product minus Depreciation
Q3. Nomination facility is available to-

(a) Individuals/Sole Proprietorship accounts/Private Limited Companies
(b) Individuals/Sole Proprietorship Accounts/Partnership Accounts
(c) Individuals/Sole Proprietorship Accounts
Q4. Off Shore Banking Unit is?

(a) a unit which is situated in Foreign country
(b) a unit which is situated in Special Economic Zones and deals in foreign currency only
(c) a unit which is actively participating in lending foreign currency loans and in joint ventures
Q5. Which of the following is the apex authority for Direct Taxes?
(a) CBDT
(b) CBEC
(c) RBI
(d) SEBI
Q6. If a bank is unable to refund the short term deposits as funds are locked in long term
loans, it involves?
(a) Interest Rate Risk
(b) Operational Risk
(c) Liquidity Risk
(d) Market Risk
Q7. If a cheque presented through the Clearing House is returned unpaid for any reason, the
banker has to enclose the cheque to a Returning Memo while returning the instrument to the
customer. This provision has been prescribed under...?
(a) Negotiable Instruments Act, 1881
(b) Reserve Bank of India Act, 1934
(c) Banking Regulation Act, 1949
(d) RBI Clearing House Rules
Q8. If a currency note is demonetized, it takes away the ________ of that currency.
(a) legal tender character
(b) exchange rate
(c) value
Q9. If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in
the-
(a) Loan Applications Received and Disposal Register
(b) Opinion Reports
(c) Loan Rejection Register
Q10. In case of Term Loans, the period of limitation is calculated as three years from?
(a) Date of documents
(b) Date of sanction
(c) Date of default
(d) Due date of each installment
Q11. Which is not e-banking software?

(a) ECS
(b) MICR
(c) RTGS
(d) PIPS
Q12. Which is the feature of IBS (Integrated Banking System)?

(a) Multi Currency
(b) Multi Entity
(c) Multi Branch
Q13. What does CBS stands for in Banking?

(a) Core Banking Solution
(b) Central Banking System
(c) Currency Bank Software
(d) Centralized Banking Software
Q14. In core banking systems?

(a) Store and forward of transaction is done
(b) Branch server is not required
(c) Local Database is not required
(d) Transaction cannot happen form a non-home branch
Q15. Which of the following is the example of the brand of SBI?

(a) SBI Mutual Fund
(b) Saving and Current Deposits
(c) Car Loan
(d) Home Loan
Q1. Borrower’s ability to meet the immediate liabilities is indicated by?
(a) Current Ratio
(b) Acid Test Ratio
(c) Debt Equity Ratio
Q2. Branches receive Potential Linked Plan through?

(a) Block Level Banker’s Committee
(b) State Level Banker’s Committee
(c) District Consultative Committee
(d) Lead Bank Department
Q3. By “Deemed Exports” it means?

(a) supplies of goods and services to units within the country which can earn foreign currency
to the country
(b) exports made by units situated in EPZ areas to out of country
(c) exports made by EOU out of the country
(d) anticipated value of exports
Q4. By devaluation we mean?
(a) A fall in the domestic value of a currency
(b) A fall in the external value of a currency caused by the market forces
(c) A fall in the external value of a currency caused by Government action
Q5. Capitalization of Reserves is carried out by issue of ___________ to the existing

shareholders.
(a) Additional shares
(b) Bonus shares
(c) Incentives
Q6. As per RBI guidelines, when a counterfeit note is detected at the branch, it should be:
(a) Branded with a stamp “COUNTERFEIT BANKNOTE”
(b) Recorded in a separate register under authentication
(c) acknowledged in the prescribed format of RBI and issued to the tenderer
Q7. Asset Reconstruction Company is associated with..........?

(a) DICGC
(b) ECGC
(c) NPA
(d) SEBI
Q8. Association of National Exchange Members of India (ANMI) is a body consisting of?
(a) Bankers and SEBI
(b) SEBI and IBA
(c) Brokers Operating in the National Exchanges
(d) Bankers, SEBI, IBA and RBI
Q9. At what stage of opening of bank account is the checking of Politically Exposed Persons
(PEP) carried out:
(a) at the first point of customer interaction
(b) at the Account Services Level
(c) at the Central Account Services Level
(d) one month after the account is opened
Q10. Authorized Dealers for foreign exchange transactions are appointed by:
(a) Reserve Bank of India
(b) Government of India
(c) Individual Banks
(d) FEDAI
Q11. Currency Note containing political slogan is not a legal tender as per:
(a) Legal Tender (Inscribed Notes) Act, 1964
(b) Negotiable Instruments Act, 1881
(c) Reserve Bank of India Act
Q12. Demand draft for Rs. 20,000 and above:
(a) can be paid in cash
(b) should not be paid in cash
(c) mode of payment will depend on the status of the customer
Q13. Deposits under NRE/FCNB accounts are linked to-

(a) Base Rate
(b) SIBOR
(c) LIBOR
Q14. Electronic Fund Transfer scheme of RBI has been renamed as:
(a) Clearing
(b) Core Banking Solutions
(c) Real Time Gross Settlement
(d) National Electronic Fund Transfer
Q15. Escrow account is useful/helpful to-

(a) importers
(b) exporters
(c) people
(d) Assets
Q1. Where is the headquarter of Federal Bank?

(a) Kochi
(b) Mumbai
(c) New Delhi
(d) Bengaluru
Q2. Which private sector bank was earlier known as UTI Bank?
(a) Axis Bank
(b) ICICI Bank
(c) HDFC Bank
(d) Yes Bank
Q3. The rural co-operatives are further divided into short-term and long-term structures. The
short-term cooperative banks are tiered operating in different states. These are........?
(a) State Co-operative Banks
(b) District Central Co-operative Banks
(c) Primary Agricultural Credit Societies
Q4. Co-operative banks are registered with...?

(b) Union Government
(c) Registrar of Cooperative Societies (RCS)
Q5. Apna Sahakari Bank Ltd is located at?

(a) Bhopal, Madhya Pradesh
(b) Kolkata, West Bengal
(c) Lucknow, Uttar Pradesh
(d) Mumbai, Maharashtra
Q6. Which of the following Committee recommended a separate Act, for Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act:
(a) Rangarajan Committee
(b) T.R. Andhyarajuna Committee
(c) Narashimham Committee
(d) Nayak Committee
Q7. The essential features of securitization are?

(a) Acquisition of Financial Assets by a Securitisation or Reconstruction Company
(b) The Assets may be NPA or standard
(c) On sale the Assets go out of the Books of the Originator
Q8. What are the Rights available to a secured creditor?

(a) To sell the Assets
(b) File application with DRT for recovery of full or remaining dues
(c) To proceed against the guarantor
Q9. The significance of index linked bonds is?

(a) It provides protection against inflation rate rise
(b) It is inbuilt in the process
(c) Either (a) or (b)
(d) Both (a) and (b)
Q10. Why the corporate prefer to issue debt paper than to Bank credit?
(a) The cost of debt paper is much lower
(b) The procedure is easy
(c) Both (a) and (b)
(d) Either (a) or (b)
Q11. In the Money market operations, the item widely accepted is?
(a) Inter Bank Participation Certificates
(b) Certificate of Deposits
(c) Treasury Bills
Q12. MUDRA Bank will regulate and refinance all Micro-Finance Institutions (MFIs) in India.
What is the full form of 'MUDRA'?
(a) Micro and Universal Development Refinance Agency
(b) Micro Units Development and Refinance Agency
(c) Micro-finance Units Development and Regulation Agency
(d) Micro Units Development and Regulation Agency
Q13. What amount of corpus is allocated to set up MUDRA Bank?

(a) Rs. 20,000 crore
(b) Rs. 25,000 crore
(c) Rs. 3,000 crore
(d) Rs. 3,500 crore
Q14. What percentage of Priority Sector Lending (PSL) is being created for Micro Enterprises
by March 2017?
(a) 10 %
(b) 7.5 %
(c) 8.5 %
(d) 9.5 %
Q15. MUDRA Bank as a wholly owned subsidiary of which institutions?

(a) Non-Banking Financial Companies (NBFCs)
(b) Commercial Banks
(c) Micro Finance Institutions (MFIs)
(d) Small Industries Development Bank of India (SIDBI)
Q1. Which of the following is a correct statement?

(a) Normally no interest is paid on current deposit accounts
(b) Interest is paid on current accounts at the same rate as term deposit accounts
(c) The rate of interest on current account and savings account are the same
(d) No interest is paid on any deposit by the bank,
(e) Savings deposits are the same as current deposits
Q2. What do you understand by the term ‘Mortgage’?

(a) Sale of movable security in the event of default by the borrower
(b) Registration of charge with the Registrar of Companies
(c) Making the security of immovable property available as a cover for a home loan by the
borrower
(d) Registration of charge with the Regional Transport Authority
(e) Returning of the security to borrower by the bank of receipt of full payment
Q3. Which of the following is NOT a source of funds of a commercial bank?

(a) Capital
(b) Borrowings from RBI
(c) Call money
(d) Deposits
(e) Cash reserves with RBI
Q4. The Banking Ombudsman is-

(a) is in charge of bank loan for buses
(b) fixes the rates of interest for loans
(c) resolves complaints of customers
(d) issues licences for new bank branches
(e) is the head of all nationalized banks
Q5. “Scheduled bank” means a bank

(a) incorporated under the Companies Act, 1956,
(b) authorized to the Banking business,
(c) governed by the Banking Regulation Act, 1949,
(d) Included in the Second schedule to the Reserve Bank of India Act 1934
Q6. For filing and resolving customer complaints the banking Ombusdsman-
(a) charges a fee of 500/- ,
(b) does not charge any fee
(c) charges a fee of 1500/-
(d) charges a fee of 1000/-,
Q7. How many banks are presently associated of State Bank of India?
(a) Eight
(b) Seven
(c) Six
(d) Five
(e) Four
Q8. To use smart cards/ debit cards/ credit cards for the purchase of an item or for
payment of a service of a merchant’s store, the card has to be swiped in a terminal
known as:
(a) Point of Sale terminal
(b) Real time terminal
(c) Shopping terminal
(d) All of the above,
Q9. A bank account in which a depositor can deposit his funds any number of times he
likes and can also withdraw the same any number of times he/she wishes is called and
normally no interest is paid on that account?
(a) Fixed deposit account
(b) Saving account
(c) Current Account
(d) Recurring account
Q10. Any note, which is wholly or partially, obliterated, shrunk, washed, altered or
indecipherable is a/an
(a) Mutilated note
(b) Imperfect note
(c) Soiled note
(d) Mismatched note
Q11. Expand the term ALM as used in Banking/ Finance sector:

(a) Asset Liability Management
(b) Asset Liability Maturity
(c) Asset Liability Mismatch,
(d) Asset Liability Manpower
(e) Asset Liability Maintenance
Q12. For repayment of loan availed from Banks/ NBFC we come across a term known
as EMI. What does it stand for?
(a) Equated Money index
(b) Easy Money Installment
(c) Equated Monthly Installment
(d) Equal Monthly Installment
(e) Equal Minimum Installment
Q13. The loan amount in case of a reverse mortgage is decided taking into account
which of the following?
(1) Value of House property,
(2) Age of the borrower
(3) prevalent Interest rates.
(a) only (1),
(b) Only (2),
(c) Only (3),
(d) All (1), (2),& (3)
Q14. In India, the RBI prescribes the minimum SLR level for Scheduled Commercial
Banks in India in specified assets as a percentage of Bank’s-
(a) Net Demand and Time Liabilities
(b) Demand Liabilities
(c) Time Liability
Q15. The methods of credit control by the Reserve Bank of India may be broadly
divided into two parts .These are:
(a) open and close,
(b) Quantitative and Qualitative
(c) monetary and fiscal
(d) rural and urban



(a) CBDT
(b) CBEC
(c) RBI
(d) SEBI
loans, it involves?
(c) Liquidity Risk
(d) Market Risk
(b) exchange rate
(c) value
the-
(b) Opinion Reports
(c) Date of default

(a) ECS
(b) MICR
(c) RTGS
(d) PIPS
(a) Multi Currency
(b) Multi Entity
(c) Multi Branch



(a) SBI Mutual Fund
(c) Car Loan
(d) Home Loan



(a) CBDT
(b) CBEC
(c) RBI
(d) SEBI
loans, it involves?
(c) Liquidity Risk
(d) Market Risk
(b) exchange rate
(c) value
the-
(b) Opinion Reports
(c) Date of default

(a) ECS
(b) MICR
(c) RTGS
(d) PIPS

(a) Multi Currency
(b) Multi Entity
(c) Multi Branch



(a) SBI Mutual Fund
(c) Car Loan
(d) Home Loan
Q1. What does FSDC stand for?

(a) Financial Security and Development Council
(b) Financial Stability and Development Council
(c) Fiscal Security and Development Council
(d) Fiscal Stability and Development Council
Q2. ___________ has been declared the first ‘total banking state’ in India, successfully
implementing the total financial inclusion thereby ensuring banking facility to all
households.
(a) Maharashtra
(b) Kerala
(c) Himachal Pradesh
(d) Uttarakhand
(e) Gujarat
Q3. RBI has introduced “Marginal Standing Facility” with the objective of:
(a) Controlling Inflation
(b) Containing instability in long term inter-bank rates
(c) Containing instability in the overnight inter-bank rates
Q4. _____________ are the beneficiaries of the “Reverse Mortgage Scheme”.

(a) Government employees
(b) Senior citizens
(c) Unemployed persons
(d) Persons of BPL category
Q5. RBI was nationalized in the year-

(a) 1949
(b) 1952
(c) 1955
(d) 1964
(e) 1935
Q6. Which of the following is/are associated with the fiscal policy?
1. Marginal Standing Facility
2. Devaluation of Currency
3. Market Stabilization Scheme
(a) 1 & 2
(b) Only 3
(c) 2 & 3
(d) Only 2
Q7. ______ is the percentage of total deposits of a bank which it has to keep with itself
in the form of liquid assets.
(a) Statutory Liquidity Ratio (SLR)
(b) Cash Reserve Ratio (CRR)
(c) Statutory Reserve Ratio
(d) Cash Ratio
(e) Marginal Standing Facility (MSF)
Q8. The exchange rate in India is dependent upon:

1. Government policy
2. Demand-supply forces
3. Monetary policy objectives
(a) Only 2
(b) 2 & 3
(c) 1 & 2
(d) 1, 2 & 3
Q9. Collateralized Borrowing and Lending Obligation (CBLO) is a/an ________.

(a) Money Market Instrument
(b) Instrument of Monetary Policy
(c) Type of Risk Cover
(d) Stock Market Instrument
Q10. Often, we read in newspapers that the RBI has changed the Repo rate and the
Reverse Repo rate by a few basis points. What is a basis point?
(a) Ten % of one hundredth point
(b) One hundredth of 1
(c) One tenth of 1%
(d) Ten % of 100
Q11. Banks generally don’t pay interest on money deposited in which of the following
accounts?
(a) Savings account
(b) Current account
(c) Fixed deposit account
Q12. ‘Fiat Money’ is defined as the money which is

(a) Accepted internationally
(b) Accepted temporarily in lieu of gold
(c) Issued by keeping gold or silver as deposit
(d) Decreed as money by the government
Q13. Demand-pull inflation can be caused by which of the following?

(a) A decline in consumption expenditure
(b) A sharp increase in lending rates
(c) A steep decline in income tax
(d) An increase in direct taxation
Q14. RBI isn’t expected to perform the role of-

(a) Acting as a clearing house
(b) Working as a banker to the government
(c) Managing forex
(d) Accepting deposits from general public
Q15. Who decided on the quantity of coins to be minted?

(a) The Government of India
(b) RBI
Q1. External Commercial Borrowings (ECBs) form part of?

(a) Current Account
(b) Capital Account
(d) Balance of Payments
Q2. FEMA provides that a person becomes a resident if he stays in India for ________ or more
in the previous year.
(a) 180 days
(b) 181 days
(c) 182 days
(d) 183 days
Q3. Generally, the lead bank in a district is the bank which is?
(a) Having government business
(b) Having the largest deposits in the district
(c) Identified to coordinate implementation of the District Credit Plan
Q4. Government policy to raise income by additional taxes and allocation of expenditure is
called?
(a) Expenditure policy
(b) Monetary policy
(c) Income policy
(d) Fiscal policy
Q5. Head Office of the Asian Development Bank located in?

(a) Jakarta, Indonesia
(b) Manila, Philippines
(c) Nairobi, Kenya
(d) Tokyo, Japan
Q6. Certificate in respect of an SSI unit is given by?

(a) RBI
(b) Chamber of Commerce
(c) District Industries Centre
Q7. Closed Economy is one in which:

(a) only export takes place
(b) money supply is fully controlled
(c) deficit financing takes place
(d) neither export nor import takes place
Q8. Commercial Papers are secured by:

(a) floating charge on stocks
(b) unsecured loans
(c) fixed assets
(d) book-debts
Q9. Concept of “Service Area Approach” was recommended by:

(a) R. V. Gupta
(b) A. D. Gorawala
(c) Dr. P. D. Ojha Committee
(d) Dr. Kalia
Q10. Credit Exposure does not include:

(a) Bridge Loans
(b) Working Capital Demand Loan
(c) Shares of the company underwritten by the bank
(d) Advances against the Bank’s fixed deposits granted to a company
Q11. Mutual Funds are required to be registered with-

(a) AMFI
(b) SEBI
(c) IBA
(d) RBI
Q12. In respect of “Door Step Banking”, RBI has issued directives under the provisions of?
(a) Reserve Bank of India Act, 1934
(d) Shops and Establishments Act
Q13. ISO 14000 deals with quality standard for?

(a) Environmental Management
(b) Technology Management
(c) Knowledge Management
(d) Information Management
Q14. Legal heirs of a deceased customer approaches the bank with a copy of the Will left by
the deceased and request for payment of the deposit standing in the name of the deceased
depositor. Bank should-
(a) obtain a probated Will and pay the amount to the legal heir
(b) obtain the Will and pay the amount to the legal heir
(c) both (a) and (b)
(d) Either (a) or (b)
Q15. Loans against Shares/Debentures can be sanctioned against the security of?
(a) Preference Share and Covertible debentures
(b) fully paid Equity Shares and debentures in demat form
(c) all shares and debentures in physical form
(d) only Preference Share and partly paid debentures
Solutions
S1. Ans.(b)
S2. Ans.(c)
S3. Ans.(c)
S4. Ans.(d)
S5. Ans.(b)
S6. Ans.(c)
S7. Ans.(d)
S8. Ans.(b)
S9. Ans.(a)
S10. Ans.(d)
S11. Ans.(b)
S12. Ans.(c)
S13. Ans.(a)
S14. Ans.(a)
S15. Ans.(b)
Q1. Which of the following is not true regarding Demand Draft?
(a) DD is issued by banks
(b) Bank account is necessary for being issued a Demand Draft
(c) DD cannot be dishonored
(d) All of the above are true
Q2. What is the full form of forex?

(a) Foreign Exemption
(b) Foreign Exchange
(c) Foreign Expert
(d) Foreign Expansion
Q3. Which of the following body is the regulator of Capital Market.........?

(a) Reserve Bank of India (RBI)
(b) Securities and Exchange Board of India (SEBI)
(c) Telecom Regulatory Authority of India (TRAI)
(d) NABARD
Q4. What is the full form of IPO?

(a) Initial Private Offering
(b) Initial Partnership Offering
(c) Initial Public Offering
(d) Interest Private offering
Q5. Stock Exchanges generally work in -

(a) Primary Market
(b) Secondary Market
(c) Money Market
(d) Financial Market

(a) Bank Rate
(b) Repo Rate
(e) Pulse Rate

(e) Prime Minister
Q9. Banking and financial services all over the world are regulated usually by the Monetary Authority of
the land. Who controls this function in India?
(b) SEBI
(c) RBI
(d) IRDA
(e) FEDAI
Q10. For which of the following reasons RBI has decided to undertake mid-quarter policy reviews?
(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
Q11. As per the reports, the collection of direct taxes has gone up by about 19% in last few months.
Which of the following agencies releases the figures about tax collection?
(a) Central Statistical organisation
(c) Department of Income Tax
Q12. As we know commercial banks accept deposits from the public. What do banks do with this money?
(a) This is a type of credit creation. Bank gives this on loan
(b) This is an income for the bank
(c) Banks give this money directly to the govt for developmental projects
(d) This money is deposited with the RBI who in turn gives some interest on it banks
Q13. Which of the following in NOT a type of cheque issued by an individual?

(a) Bearer cheque
(b) Order cheque
(c) Crossed cheque
(d) Savings cheque
Q14. Which of the following terms is used in banking?

(a) Vacuum
(b) Power
(c) Density
(d) Credit Card
Q15. “Sensitive Index” of Bombay Stock Exchange is called ……………?

(a) Forex
(b) MAX
(c) LIBOR
(d) Sensex
Q1. The seed capital of Bhartiya Mahila Bank is-
(a) Rs. 2000 crore
(b) Rs. 1000 crore
(c) Rs. 4000 crore
(d) Rs. 3000 crore
Q2. The process by which a life insurance policyholder can transfer all rights, title and interest
under a policy contract to a third person, is known as?
(a) Assignment of the policy
(b) Hypothecation of the policy
(c) Reinvestment of the policy
(d) Negotiation of the policy
(e) Nomination of the policy
Q3. Which of the following institutions is regarded as the ‘Lender of the Last Resort’ by Banks
in India?
(a) State Bank of India
(b) The State Treasury
(c) Reserve Bank of India
(d) World Bank
(e) Department of Financial Service
Q4. A bank’s ‘fixed deposit’ is also referred to as a.....?

(a) term deposit
(b) saving bank deposit
(c) current deposit
(d) demand deposit
(e) home savings deposit
Q5. To improve access of the poor to banking, the RBI has advised banks to open branches
with minimum infrastructure supporting up to 8 to 10. Business Correspondents (BCs) at a
reasonable distance of 3-4 km. Such branches are known as-
(a) nodal branches
(b) micro branches
(c) mini branches
(d) ultra small branches
(e) satellite branches
Q6. The Aadhar-Enabled Payment System (AEPS) is a bank-led model that facilitates banking
facilities through banking correspondents across banks. However, Aadhaar-enabled basic
types of banking transactions do ‘not’ include?
(a) Aadhaar to Aadhaar funds transfer
(b) small overdraft facility
(c) cash withdrawal
(d) balance enquiry
(e) cash deposit
Q7. A type of fraud where in criminals use an innocent person’s details to open or use an
account to carry out financial transactions, is known as?
(a) identity theft
(b) hacking
(c) money laundering
(d) espionage
(e) phishing
Q8. The part of a company’s earnings or profits which are paid out to shareholders, is known
as-
(a) capital gains
(b) taxes
(c) interest on borrowings
(d) dividends
(e) penal interest
Q9. NABARD is responsible for regulating and supervising the functions of

(a) Investment and Industrial Finance Banks
(b) Cooperative Banks and Regional Rural Banks
(c) Corporate Finance and Overseas Banking Units
(d) Private Sector and Multinational Banks
(e) Reserve Bank of India
Q10. The government of India has announced a ‘Funding for Lending’ scheme. Who are the
beneficiaries for this scheme?
(a) Commercial Banks
(b) Regional Rural Banks
(c) Micro-finance Institutions
(d) Finance Departments of the State Governments
Q11. Which of the following ministries along with Planning Commission of India has decided
to set up a Corpus Fund of Rs. 500 crore, so that Tribals in Naxal-hit areas can be provided
proper means of livelihood?
(a) Ministry of Rural Development
(b) Ministry of Home Affairs
(c) Ministry of Tribal Affairs
(d) Ministry of Corporate Affairs
(e) Ministry of Finance
Q12. The term ‘Smart Money’ refers to

(a) Foreign Currency
(b) Internet Banking
(c) US Dollars
(d) Travellers’ Cheques
(e) Credit Cards
Q13. Which one of the following is not a ‘Money Market Instrument’?

(a) Treasury Bills
(b) Commercial Paper
(c) Certificate of Deposit
(d) Equity Shares
Q14. Which one of the following is a retail banking product?

(a) Home loans
(b) Working capital finance
(c) Corporate term loans
(d) Infrastructure financing
(e) Export credit
Q15. In the summit of which of the following organizations/group of nations it was decided that
all members should enforce Budget Discipline?
(a) G-8
(b) OPEC
(c) European Union
(d) SAARC
(e) G-20
Q1. Refinance facility is provided by NABARD. Which institutions can avail this facility?
(a) State cooperative banks
(b) Regional rural banks
(c) Commercial bank
Q2. Kisan Credit Cards are an effective way of reaching out to the farmers by the banks. What
assistance does the farmer receive in this way?
(a) Credit facility for crops etc against an approved limit
(b) Short-term credit facility against value of his crops
(c) Long-term credit is provided against his land holdings
(d) Loan is permissible against crops sold, but payment yet to be received by the farmer
Q3. Which of the following is true?

(a) NBFCs can accept deposits from the public
(b) NBFCs cannot offer deposit schemes to the public
(c) Deposits of NBFCs are insured with DICGC
(d) NBFCs can accept deposits from public if they are registered and permitted by RBI
Q4. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-up
this ‘Base rate’ for banks?
(a) Individual Banks’ Board
(b) Ministry of Commerce
(c) Ministry of Finance
(d) RBI
(e) Interest Rate Commission of India
Q5. The financial assistance of loans of Rs.10000 by bank to a small borrower will be
called..........?
(a) business finance
(b) government finance
(c) micro finance
(d) small finance
(e) KYC finance
Q6. Which institution provides long run finance to industries?

(a) UTI
(b) LIC
(c) GIC
(d) IDBI
Q7. Which type of ATMs can be provided by NBFCs?

(a) Bank-owned ATMs
(b) WLAs
(c) BLAs
Q8. Letter of Credit is generally used for -

(a) International trade
(b) Domestic trade
(c) Foreign Exchange
Q9. Initially who provides Bill of Lading to whom?

(a) Seller to Carrier
(b) Carrier to Seller
(c) Carrier to Buyer
(d) Seller to Buyer
Q10. Which of the following is the most active segment of the money market in India?
(a) Call Money/Notice Money Market
(b) Repo/Reverse Repo
(c) Commercial Paper (CP)
(d) Certificate of Deposit (CD)
Q11. Working capital means?

(a) Cash-in hand and at bank
(b) Current assets
(c) Current liabilities and provisions
(d) Current assets minus current liabilities
Q12. “Window dressing” means?

(a) The modern way of decorating a branch office
(b) A decorative way of presenting the Balance Sheet and Profit and Loss Account of a bank at its
annual general meeting
(c) Manipulation of accounts with a view not to give the share holders a true and fair view
(d) Is a strategy used by mutual fund and portfolio managers near the year or quarter end to
improve the appearance of the portfolio/fund performance before presenting it to clients or
shareholders
Q13. Which of the following cannot be endorsed?

(a) A fixed deposit receipt
(b) A bank draft
(c) A Promissory note
(d) A usance bill of exchange
(e) A cheque
Q14. Restrictive endorsement is one in which?

(a) Endorser endorses an instrument conditionally
(b) Endorser restricts the further transfer by the endorsee
(c) Endorser endorses in favour of endorsee for his particular work
Q15. Account payee crossing is an direction of the drawer to?

(a) To collecting banker
(b) To drawee banker
(c) To payee
(d) To all endorsees
Q1. Which of the following acts helps a bank in its day-to-day activities?
(a) Competition Act
(b) Negotiable Instruments Act
(c) Hindu Marriage Act
(d) Hindu Succession Act
(e) NRI Act
Q2. Which of the following is a primary function of banks?

(a) Collection and payment of cheques, rent, interest etc on behalf of their customers
(b) Buying, selling and keeping in safe custody, the securities on behalf of their customers
(c) Acting as trustee and executors of the property of their customers on their advice
(d) Remitting money from one place to the other through bank drafts or mail or telegraphic
transfers
(e) Accepting deposits
Q3. The banker is under an obligation to take utmost care in keeping secrecy of the
details of the customer. However, the obligation of secrecy is not considered essential
when
(a) a banker is required to give evidence in the court
(b) there is national emergency and disclosure is essential in the public interest
(c) there are clear proofs of reason to the state and when consent is given by the customer to
provide information for the preparation of balance sheet
Q4. Transfer of any instrument to another person by signing on its back or face or on a
slip of paper attached to it is known as........?
(a) promissory note
(b) bill of lading
(c) bill of exchange
(d) endorsement
Q5. Which of the following statements is correct about promissory note?

(a) It need not be in writing
(b) An implied promise is enough to constitute a valid promissory note
(c) The promise to pay must be definite and unconditional
(d) The name of the payee need not be mentioned
(e) The payment can be in kind
Q6. What is meant by a scheduled bank?

(a) The bank functioning under provisions of Banking Reg. Act 1949
(b) A bank included in 2nd schedule of RBI Act, 1934
(c) The bank incorporated under Banking Companies Act 1956
(d) A bank authorised for banking functions
(e) bank issued a license by RBI mentioning therein that it is a scheduled bank
Q7. On the basis of powers drawn mainly in which of the following Acts, RBI regulates
and controls the banks in India?
(a) Banking Regulation Act and RBI Act
(b) RBI Act and Companies Act
(c) Banking Regulation Act and Companies Act
(d) Banking Regulation Act, RBI Act and Negotiable Instruments Act
Q8. Banking has been defined under ________ of.

(a) Banking Regulation Act Section 5(b)
(b) Banking Regulation Act Section 17
(c) RBI Act Section 2 (2)
(d) Negotiable Instruments Act Section 1
Q9. Who among the following is only a holder and not a ‘holder’ in due course?
(a) Holder of a bearer cheque
(b) Holder of a crossed order cheque
(c) Holder of a Non-negotiable crossed cheque
Q10. Where the time for payment is not mentioned in a promissory note it is?
(a) invalid instrument
(b) inchoate instrument
(c) no payment can be demanded
(d) payable on demand
Q11. As per the reports published in various journals and newspapers the ‘small
borrowers’ in rural areas still prefer to take informal route for their credit needs.
Which of the following is the ‘informal route’ of credit in financial sector?
(a) Credit cards
(b) Loan against gold from financial institute
(c) Debit cards
(d) Money lender
Q12. What is meant by ‘Underwriting’ the term frequently used in financial sector?
(a) Under valuation of the assets
(b) The Act of taking on a risk
(c) Giving a Guarantee that a loan will not become a bad loan
(d) None of the above
Q13. As we have noticed many banks of Indian origin are opening offices/branches in
foreign countries. Why is this trend emerging at a very fast pace?
I. These Banks wish to provide banking facilities to foreigners as banking facilities are not
plenty in many foreign countries. India wants to take an advantage of the situation.
II.These banks wish to help Indian firms to acquire funds at internationally competitive
rates.
III. These banks wish to promote trade and investment between India and other countries.
(a) Only I
(b) Only II
(c) Only III
(d) Only II and III
Q14. Many economists, bankers and researchers in India often advocate that banks
should equip themselves for new challenges. These challenges are in which of the
following shapes/forms?
I. As India economy is getting increasingly integrated with the rest of the world the demand
of the Corporate banking is likely to change in terms of size, composition of services and also
the quality.
II. The growing foreign trade in India will have to be financed by the local banks.
III. Foreigners are habitual of the comforts provided by the technology. India has to do a lot
in this reference.
(a) Only I is correct
(b) Only II is correct
(c) Only III is correct
Q15. Which of the following is not a banking/finance related term?

(a) Credit warp
(b) EMI
(c) Held to Maturity
(d) Diffusion
Q1. Small Coins are -

(a) Coins with denominations of Re. 1
(b) Coins with denominations of more than Re. 1
(c) Coins with denominations of less that Re. 1
Q2. Which of the following is a Money Market Instrument?

(a) Call Money
(b) T-Bills
(c) Collateralized Borrowing and Lending Obligations (CBLO)
(d) All are Money Market Instruments
Q3. Repo borrowings by commercial banks from RBI generally have a tenure of -
(a) 1 day to 30 days
(b) 1 day to 90 days
(c) 1 day to 180 days
(d) 1 day to 365 days
Q4. Which of the following instrument can be issued by any corporate?

(a) Certificate of Deposits (CDs)
(b) Commercial Papers (CPs)
(c) Inter-Corporate Deposits (ICDs)
(d) Gilt-edged securities
Q5. Which financial entities can issue Certificate of Deposits (CDs)?

(a) Scheduled Commercial Banks, excluding RRBs
(b) Financial Institutions permitted by RBI
(c) Both (a) and (b)
(d) BSNL
Q6. (The figures in this questions are imaginary). We suppose that Cash Reserve Ratio (CRR)
in country’s economy is 10%. The banking system wish a cash deposits of Rs. 1000 Crore,
creates total deposits of Rs. 10,000 Crores. The Reserve Bank wishes that bank should create
more deposits. Which among the following step will be taken by the Reserve Bank?
(a) It will lower the Cash Reserve Ratio
(b) It will raise the Cash Reserve Ratio
(c) It will increase the Margin Requirements
(d) It will start selling Government Securities
Q7. Many a times we read in the newspapers that RBI takes certain steps to curb the menace
of Inflation. In this context, which among the following will not help RBI in controlling the
inflation in the country?
(a) An increase in the Bank Rate
(b) An increase in the Reserve Ratio Requirements
(c) A purchase of securities in the open market
(d) Rationing of the credit
Q8. We suppose that Reserve Bank of India would like to increase the cash Reserves of the
commercial banks. Which among the following would be most appropriate action of the RBI to
achieve this aim?
(a) RBI would release gold form its reserves
(b) RBI would raise the reserve ratio
(c) RBI would buy the bonds in the open market
(d) RBI will stop the transactions which involve the bills of exchange
Q9. Commercial banks are the largest category of financial intermediaries; others include?
(a) Life-insurance companies
(b) Pension funds
(c) Savings and loan institutions
Q10. In India nation income is estimated by?

(a) Finance Commission
(b) Central Statistical Organisation
(c) Planning Commission
Q11. Proposals for setting up of new banks are under active consideration. Which
organisation gives the permission?
(a) RBI
(b) Indian Banks Association
(c) Finance Ministry
(d) Cabinet Committee on Economic Affairs
Q12. Which of the following rates is decided by the market conditions and not by RBI?
(a) Bank rate
(b) SLR
(c) CRR
(d) Inflation rate
Q13. An average citizen cannot open a Savings account in which of the following?
(a) Commercial bank
(b) Post office
(c) Co-operative bank
(d) RBI
Q14. As per the existing policy, the Cash Reserve Ratio (CRR) of scheduled banks is fixed at a
certain percentage of their NDTL. What is full form of NDTL?
(a) New Demand and Tenure Liabilities
(b) Net Demand and Time Liabilities
(c) National Deposits and Total Liquidity
(d) Net Duration and Total Liquidity
(e) New Deposits and Term Liquidity
Q15. Which of the following rates signals the RBI’s long-term outlook on interest rates?
(a) Repo rate
(b) Reverse repo rate
(c) Bank rate
(d) SLR
(e) CRR
Q1. As per the reports published in various journals and newspapers the ‘small borrowers’ in
rural areas still prefer to take informal route for their credit needs. Which of the following is the
‘informal route’ of credit in financial sector?
(a) Credit cards
(b) Loan against gold from financial institute
(c) Debit cards
(d) Money lender
Q2. What is meant by ‘Underwriting’ the term frequently used in financial sector?
(a) Under valuation of the assets
(b) The Act of taking on a risk
(c) Giving a Guarantee that a loan will not become a bad loan
Q3. As we have noticed many banks of Indian origin are opening offices/branches in foreign
countries. Why is this trend emerging at a very fast pace?
I. These Banks wish to provide banking facilities to foreigners as banking facilities are not plenty in
many foreign countries. India wants to take an advantage of the situation.
II.These banks wish to help Indian firms to acquire funds at internationally competitive rates.
III. These banks wish to promote trade and investment between India and other countries.
(a) Only I
(b) Only II
(c) Only III
(d) Only II and III
Q4. Many economists, bankers and researchers in India often advocate that banks should
equip themselves for new challenges. These challenges are in which of the following
shapes/forms?
I. As India economy is getting increasingly integrated with the rest of the world the demand of the
Corporate banking is likely to change in terms of size, composition of services and also the quality.
II. The growing foreign trade in India will have to be financed by the local banks.
III. Foreigners are habitual of the comforts provided by the technology. India has to do a lot in this
reference.
(a) Only I is correct
(b) Only II is correct
(c) Only III is correct
Q5. Which of the following is not a banking/finance related term?
(a) Credit warp
(b) EMI
(c) Held to Maturity
(d) Diffusion
Q6. The major shareholders in Asset Reconstruction Company of India Limited (ARCIL) other
than SBI are?
(a) IDBI & Canara Bank
(b) ICICI & HDFC
(c) IDBI & HDFC
(d) IDBI & ICICI
Q7. The minimum and maximum court fee that is required to be paid for filing a suit in a Debt
Recovery Tribunal is?
(a) Rs. 5,000; Rs. 1,00,000
(b) Rs. 10,000; Rs. 1,00,000
(c) Rs. 12,000; Rs. 1,50,000
Q8. The practice of reducing NPAs through cross-lending to square off loans from bank is
known as?
(a) “Ever-Greening” of advances
(b) “Take Over” of advances
(c) Compromise Settlement
Q9. The risks involved in paying a post-dated cheque are?

(a) the drawer may issue other cheques which bear a date prior to the date of such a cheque and if
the balance is insufficient, the bank may be held liable
(b) an Attachment Order may be received attaching the balance in the account
(c) the drawer may stop payment
Q10. The single largest component of external debt is?

(a) Commercial borrowings
(b) Multilateral debt
(c) Short term debt
(d) NRI deposits
Q11. RBI recently proposed a new post in the rank of Deputy Governor (along with the 4
Deputy Governors). Which one is that post?
(a) Chief Executive Officer (CEO)
(b) Chief Operating Officer (COO)
(c) Chief Finance Officer (CFO)
(d) CEO and Managing Director (CMD)
Q12. Which one of the following rates is not decided by RBI?

(a) Repo rate
(b) Base rate
(c) Bank rate
(d) Marginal Standing Facility (MSF) rate
Q13. Which of the following bank is generally not considered as Commercial bank?
(a) Public Sector Bank
(b) Private Sector Bank
(c) Development Bank
(d) Foreign Bank
Q14. Which of the followings are Development Banks of India?

(a) Industrial Finance Corporation of India (IFCI)
(b) State Finance Corporations (SFCs)
(c) Small Industries Development Bank of India (SIDBI)
Q15. Which bank are Public Sector Banks of India?

(a) More than 50 % stake held by government
(b) 50 % stake held by government
(c) Less than 50 % stake held by government
Q1. Who is the first Governor of RBI?
(a) C.D.Deshmukh
(b) James Braid Taylor
(c) Osborne Smith
(d) Raghuram Rajan
Q2. Scheduled Banks of India are those banks, which are?

(a) Included in First Schedule of RBI Act, 1934
(b) Not included in First Schedule of RBI Act, 1934
(c) Included in Second Schedule of RBI Act, 1934
(d) Not included in Second Schedule of RBI Act, 1934
Q3. Which is not an Associate Bank of SBI?

(a) State Bank of Bikaner & Jaipur
(b) State Bank of Travancore
(c) State Bank of Mysore
(d) State Bank of Rajasthan
Q4. Which of the following bank is not a private sector bank in India?
(a) Federal Bank
(b) Yes Bank
(c) IndusInd Bank
(d) UCO Bank
Q5. Which private sector bank is recently merged with Kotak Mahindra Bank (KMB)?
(a) ING Vysya Bank
(b) Karur Vysya Bank
(c) Lakshmi Vilas Bank
(d) Jammu and Kashmir Bank
Q6. Currently, Which of the following combination has female CMDs or heads?
(a) HDFC, ICICI, Axis Bank
(b) ICICI, Axis Bank, Kotak Mahindra Bank
(c) Yes Bank, Kotak Mahindra Bank, SBI
(d) SBI, ICICI, Axis Bank
Q7. Which one of the following rates is not decided by RBI?

(a) Repo rate
(b) Base rate
(c) Bank rate
(d) Marginal Standing Facility (MSF) rate
Q8. Which of the following bank is generally not considered as Commercial bank?
(a) Public Sector Bank
(b) Private Sector Bank
(c) Development Bank
(d) Foreign Bank
Q9. Which of the followings are Development Banks of India?

(a) Industrial Finance Corporation of India (IFCI)
(b) State Finance Corporations (SFCs)
(c) Small Industries Development Bank of India (SIDBI)
Q10. Which bank are Public Sector Banks of India?

(a) More than 50 % stake held by government
(b) 50 % stake held by government
(c) Less than 50 % stake held by government
(d) Less than 25 % stake held by government
Q11. Which two private sector banks have got license from RBI in 2014?
(a) Bandhan and Yes Bank
(b) Yes Bank and IDFC
(c) IDFC Bank and Bandhan Bank
(d) Axis Bank and ICICI
Q12. Who is conferred with the Central Banker of the Year Award (Global and Asia Pacific) for
2016 by The Banker, the Financial Times Group's monthly publication?
(a) Janet Yellen
(b) Raghuram Rajan
(c) Graeme Wheeler
(d) Mario Draghi
Q13. Open market operations, one of the measures taken by RBI in order to control credit
expansion in the economy means?
(a) Sale or purchase of Govt. securities
(b) Issuance of different types of bonds
(c) Auction of gold
Q14. Which bank first introduced Automated Teller Machine (ATM) in India (1987)?
(a) SBI
(b) Punjab National Bank
(c) Federal Bank
(d) HSBC
Q15. Bank of Rajasthan was merged with which private sector bank?
(a) ICICI Bank
(b) Axis Bank
(c) HDFC Bank
(d) Kotak Mahindra Bank
Q1. Refinance facility is provided by NABARD. Which institutions can avail this facility?
(a) State cooperative banks
(b) Regional rural banks
(c) Commercial bank
Q2. Kisan Credit Cards are an effective way of reaching out to the farmers by the banks. What
assistance does the farmer receive in this way?
(a) Credit facility for crops etc against an approved limit
(b) Short-term credit facility against value of his crops
(c) Long-term credit is provided against his land holdings
(d) Loan is permissible against crops sold, but payment yet to be received by the farmer
Q3. Which of the following is true?

(a) NBFCs can accept deposits from the public
(b) NBFCs cannot offer deposit schemes to the public
(c) Deposits of NBFCs are insured with DICGC
(d) NBFCs can accept deposits from public if they are registered and permitted by RBI
Q4. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-
up this ‘Base rate’ for banks?
(a) Individual Banks’ Board
(b) Ministry of Commerce
(c) Ministry of Finance
(d) RBI
(e) Interest Rate Commission of India
Q5. The financial assistance of loans of Rs.10000 by bank to a small borrower will be
called..........?
(a) Business finance
(b) Government finance
(c) Micro finance
(d) Small finance
(e) KYC finance
Q6. (The figures in these questions are imaginary). We suppose that Cash Reserve Ratio (CRR)
in country’s economy is 10%. The banking system wish a cash deposits of Rs. 1000 Crore,
creates total deposits of Rs. 10,000 Crores. The Reserve Bank wishes that bank should create
more deposits. Which among the following step will be taken by the Reserve Bank?
(a) It will lower the Cash Reserve Ratio
(b) It will raise the Cash Reserve Ratio
(c) It will increase the Margin Requirements
(d) It will start selling Government Securities
Q7. Many a times we read in the newspapers that RBI takes certain steps to curb the menace of
Inflation. In this context, which among the following will not help RBI in controlling the
inflation in the country?
(a) An increase in the Bank Rate
(b) An increase in the Reserve Ratio Requirements
(c) A purchase of securities in the open market
(d) Rationing of the credit
Q8. We suppose that Reserve Bank of India would like to increase the cash Reserves of the
commercial banks. Which among the following would be most appropriate action of the RBI to
achieve this aim?
(a) RBI would release gold form its reserves
(b) RBI would raise the reserve ratio
(c) RBI would buy the bonds in the open market
(d) RBI will stop the transactions which involve the bills of exchange
Q9. Commercial banks are the largest category of financial intermediaries; others include?
(a) Life-insurance companies
(b) Pension funds
(c) Savings and loan institutions
Q10. An average citizen cannot open a Savings account in which of the following?
(a) Commercial bank
(b) Post office
(c) Co-operative bank
(d) RBI
Q11. Educational for All Development Index is released by -

(a) IMF
(b) World Bank
(c) UNO
(d) WTO
Q12. Which of the following is/are TRUE about the “Village Gram Bank Scheme”?
(a) The scheme is launched to provide safeguards against Starvation during the period of
natural calamities or lean season
(b) The gram banks are set up in food scare areas like drought prone areas
(c) Village Panchayats who were running Village Grain Banks earlier are now not authorized to run
(d) Both (a) and (b)
Q13. Non-Agricultural Market Access (NAMA) word is related to which organization?

(a) WTO
(b) UNCTAD
(c) IMF
(d) World Bank
(e) NDB
Q14. SEBI is related to _________.

(a) Bank
(c) Share Market
Q15. The National Planning Council (NPC) was formed on 3rd February ______ to ensure
coordination of planning functions of different sectors, to determine national priorities, to
provide advice on long term development policies and strategies, to ensure sustainable
development of the nation and to ensure balanced and equitable development at provincial
level.
(a) 1996
(b) 2992
(c) 2012
(d) 2009
(e) 2002
Q1. What does FSDC stand for?
(a) Financial Security and Development Council
(b) Financial Stability and Development Council
(c) Fiscal Security and Development Council
(d) Fiscal Stability and Development Council
Q2. ___________ has been declared the first ‘total banking state’ in India, successfully
implementing the total financial inclusion thereby ensuring banking facility to all households.
(a) Maharashtra
(b) Kerala
(c) Himachal Pradesh
(d) Uttarakhand
(e) Gujarat
Q3. RBI has introduced “Marginal Standing Facility” with the objective of:
(a) Controlling Inflation
(b) Containing instability in long term inter-bank rates
(c) Containing instability in the overnight inter-bank rates
Q4. _____________ are the beneficiaries of the “Reverse Mortgage Scheme”.

(a) Government employees
(b) Senior citizens
(c) Unemployed persons
(d) Persons of BPL category
Q5. RBI was nationalized in the year-

(a) 1949
(b) 1952
(c) 1955
(d) 1964
(e) 1935
Q6. Which of the following is not a measure to control inflation as adopted by Govt. of India
and/or RBI?
(a) Monetary Policy
(b) Fiscal Policy
(c) Financial Inclusion
(d) Price control
(e) Bank Rate Policy
Q7. Current accounts are meant and useful for _____?

(a) Investment purposes
(b) Identity purposes
(c) Savings purposes
(d) Day-to-day business needs
(e) Operational convenience
Q8. A _____ card is basically a payment mechanism which allows the holder to
make purchase without any immediate cash outflows either physically or through his accounts?
(a) Debit
(b) Smart
(c) Credit
(d) ATM
(e) Kisan Credit
Q9. What do we mean by “Demat Accounts” in the financial markets in India?

(a) an account which is opened by the people of the lower income group of society
(b) an account in which trading of shares is done
(c) an account, which can be opened only by the Minors
(d) an account, of the nature of current account, which can be opened only by the Corporate
Houses
Q10. The ‘monetary base for credit expansion’ consists of _____?

(a) The total value of ‘high-powered money’
(b) The demand and time deposit liabilities
(c) The size of the deficit in the government’s budget
Q11. The Negotiable Instruments Act deals with ____?

(a) Cheques, demand drafts, banker’s cheques
(b) Promissory notes, bills of exchange and cheques
(c) Bills of exchange, Cheques and demand drafts
(d) Cheques, demand drafts and saving bank withdrawal forms
Q12. “Muhammad Yunus” is associated with Banking Industry and is acclaimed for his
contribution in the field of ____?
(a) Micro-finance
(b) Technological advancement
(c) Consumer finance
(d) Banking Reforms in Bangladesh
(e) Low-cost housing
Q13. A NBFC is prohibited to offer or undertake _____?

(a) accept demand deposits
(b) accept time deposits
(c) Lend long term loans
(d) Pay a higher rate of interest on deposits as compared to Banks
Q14. CBS stand for?

(a) Centralised banking system
(b) Computer based Solution
(c) Core banking Solution
(d) Customised banking Solution
Q15. Small Industries Development Bank of India’s Single Window scheme means that a
borrower is granted _____?
(a) Both term loan for fixed assets and loan for working capital through the same agency,
namely, SFCs or Commercial Banks
(b) Both term and working capital through SIDBI itself
(c) Both term loan and working capital through IDBI
Q1. Which of the following is a correct statement?
(a) Normally no interest is paid on current deposit accounts
(b) Interest is paid on current accounts at the same rate as term deposit accounts
(c) The rate of interest on current account and savings account are the same
(d) No interest is paid on any deposit by the bank,
(e) Savings deposits are the same as current deposits
Q2. What do you understand by the term ‘Mortgage’?

(a) Sale of moveable security in the event of default by the borrower
(b) Registration of charge with the Registrar of Companies
(c) Making the security of immovable property available as a cover for a home loan by the
borrower
(d) Registration of charge with the Regional Transport Authority
(e) Returning of the security to borrower by the bank of receipt of full payment
Q3. Which of the following is NOT a source of funds of a commercial bank?

(a) Capital
(b) Borrowings from RBI
(c) Call money
(d) Deposits
(e) Cash reserves with RBI
Q4. The Banking Ombudsman is-

(a) is in charge of bank loan for buses
(b) fixes the rates of interest for loans
(c) resolves complaints of customers
(d) issues licences for new bank branches
(e) is the head of all nationalised banks
Q5. “Scheduled bank” means a bank

(a) incorporated under the Companies Act, 1956,
(b) authorised to the Banking business,
(c) Governed by the Banking Regulation Act, 1949,
(d) Included in the Second schedule to the Reserve Bank of India Act 1934
Q6. Which of the following acts is useful in controlling HAWALA transactions?

(a) FEMA Act
(b) RBI Act
(c) DICGC Act
(d) Banking Regulation Act
Q7. What does the term SME stand for?

(a) Small and Micro Enterprises
(b) Small and Medium Enterprises
(c) State and Medium Economy
(d) Small and Medium Economy
Q8. CAMELS’ is a type of Bank Rating System. In CAMELS, what does ‘C’ stand for?
(a) Currency
(b) Compensation
(c) Capital Adequacy
(d) Capitalisation
Q9. In banking parlance, ‘NPA’ stands for?

(a) Non-Performing Asset
(b) Net Producing Asset
(c) Net Performing Asset
(d) Not Promoting Asset
Q10. LAF is an indirect instrument of monetary policy, which is used by RBI to regulate the
liquidity in banking system. ‘LAF’ stands for-
(a) Liquidity Adjustment Facility
(b) Liquidity Account Facility
(c) Liquidity Allotment Facility
(d) Long Adjustment Feature
Q11. Often, we read in the newspapers that several Indian companies are taking the FCCB
route to raise capital. What does the term FCCB stand for?
(a) Foreign Currency Convertible Bond
(b) Foreign Convertible Credit Bond
(c) Financial Consortium and Credit Bureau
(d) Future Credit and Currency Bureau
Q12. _____________ are NOT a part of the Scheduled Banking structure in India.
(a) Money lenders
(b) Public sector banks
(c) Private sector banks
(d) Regional rural banks
Q13. ‘MAT’ is an acronym which stands for-

(a) Maximum Alternate Tax
(b) Minimum Alternate Tax
(c) Minimum Affordable Tax
(d) Maximum Affordable Tax
Q14. DEPB (Duty Entitled Passbook) scheme which ended in September 2011 was related to-
(a) Foreign direct investment
(b) Foreign institutional investment
(c) Export promotion
(d) Import substitution
Q15. ‘KYC’ (Know Your Customer) norms were implemented in the Indian banking system in
2002 as per the directive of?
(a) SEBI
(b) RBI
(c) IBA
(d) IRDA
Q1. Who will settle the grievances of customers of banks?
(b) State Bank of India
(c) Local Courts
(d) Ombudsman
(e) Governor of RBI
Q2. The main function of commercial bank can be segregated into-------

I. payment system.
II. financial intermediation.
III. financial services.
Select the correct answer using the codes given below
(a) All I, II and III
(b) Only I and III
(c) Only I and II
(d) Only II and III
Q3. Money laundering normally involved?
(a) placement of funds
(b) layering of funds
(c) integrating of fund
Q4. Which of the following is the Central Bank of the country?

(a) RBI
(b) SBI
(c) RRB
(d) NABARD
(e) SEBI
Q5. For filing and resolving customer complaints, the Banking Ombudsman?
(a) charges a fee of Rs 500
(b) does not charge any fee
(c) charges a fee of Rs 1500
(d) charges a fee of Rs 1000
Q6. Public Sector Banks are required to pay how much percentage of their net bank credit to
Priority Sector in advance?
(a) 5%
(b) 7%
(c) 40%
(d) 15%
Q7. Which of the following is/are correct about the ‘Operational Risk’ as used in the field of
banking?
A. Risk of loss due to inadequate or failed internal process.
B. Risk of loss due to natural calamities.
C. Loss occurred due to non compliance of legal procedures.
(a) Only A
(b) Only B
(c) Only C
Q8. SBI establishment day is celebrated on __________

(a) 3rd July
(b) 4th July
(c) 1st July
(d) 2nd July
Q9. CRISIL is a __________.

(a) Mutual Fund
(b) Credit Rating Agency
(c) Investment Bank
(d) Share Depository
Q10. Who amongst the following is the author of the book (released recently) “India and Global
Financial Crisis : Managing Money and finance”?
(a) Dr. Bimal Jalan
(b) Dr. C. Rangarajan
(c) Dr. Manmohan Singh
(d) Dr. Y. V. Reddy
Q11. Which of the following products launched by most of the banks help farmers in getting
instant credit for various agricultural purposes?
(a) Kisan Credit Card
(b) Personal Loan
(c) Business Loan
(d) Only (a) and (b)
Q12. Which of the following policies of the financial sectors is basically designed to transferring
local financial assets into foreign financial asset freely and at market determined exchange
rates?
(a) Capital Accounts Convertibility
(b) Financial Deficit Management
(c) Minimum Support Price
Q13. A customer wishes to purchase some US dollars in India. He/she should go to?
(a) Public Debt Division of the RBI only
(b) American Express Bank only
(c) RBI or any branch of a bank which is authorised for such business
(d) Only (b) and (c)
Q14. Which of the following products of a bank is specifically designed to provide financial help
to children in their higher studies in India or in a foreign nation?
(a) Personal Loan
(b) Corporate Loan
(c) Educational Loan
(d) Mortgage Loan
Q15. A Bank/Financial Organisation these days relies heavily on e-commerce for its transaction.
As a part of system security, it has introduced organisation’s security awareness manual. This
step of the organisation can be classified under which one of the following categories of
measures for a business?
(a) Preventive Vigilance
(b) Compliance
(c) Corrective
(d) Detective
Q1. A rise in the reserve ratio of banks ______?
(a) Will lead to an increase in the money supply
(b) Will lead to a proportionate increase in the money supply
(c) Will lead to a decrease in the money supply
(d) Will have no impact on money supply
Q2. In the case of FCNR accounts the payment of interest is effected in ______?
(a) Indian Rupee
(b) Only in Pound (£)
(c) Same currency in which deposit stands
(d) Yen
Q3. Banks are required to maintain SLR under ____?

(a) Section 24 of the Banking Regulation Act
(b) Section 49 of the Banking Regulation Act
(c) Section 24 of RBI Act
Q4. CRR is required to maintain in the form of _____?

(a) Approved Government Securities
(b) Cash with RBI
(c) Cash with bank
Q5. In which of the Acts, specimen of the cheque, bill, promissory note is given?
(a) Negotiable Instruments Act
(c) Mercantile Law
Q6. Regional rural banks are managed by ______?

(a) The Central Government
(b) Sponsored Bank
(c) The State Government
Q7. Appellate Tribunal for recovery of debts due to banks and financial institutions has set up
in _____?
(a) 1990
(b) 1970
(c) 2000
(d) 1994
(e) 2010
Q8. Many times we read about Special Drawing Rights (SDR) in newspapers. As per its
definition, SDR is a monitory unit of reserve asset of which the following organization/agency?
(a) World Bank
(b) International Monetary Fund (IMF)
(c) Asian Development Bank (ADB)
(d) Reserve Bank of India (RBI)
Q9. As per recent newspaper reports, RBI is considering the grant of license to some new
companies, particularly NBFCs, to act as full-fledged Banks. Which of the following will be
considered as NBFC?
(a) NABARD
(b) Life Insurance Corporation of India
(c) Reliance Capital
(d) SEBI
Q10. Various banks in the country have installed machines which disburse money
to general public. These machines are called ____?
(a) Coin Dispensing machine
(b) ATM
(c) Debit card machine
(d) Ledger machines
Q11. Which of the following is the Statutory Liquidity ratio (SLR), at present?
(a) 10%
(b) 21.5%
(c) 20.50%
(d) 24%
(e) 33%
Q12. RBI’s open market operation transactions are carried out with a view to regulate _____?
(a) Liquidity in the economy
(b) Prices of essential commodities
(c) Inflation
(d) Borrowing powers of the Bank
Q13. Under Open market operations, one of the measures taken by the RBI in order to control
credit expansion in the economy, does ____?
(a) Sale and purchase of Govt. securities
(b) Issuance of different type of Bond
(c) Auction of Bond
(d) To make available direct finance to Borrowers
Q14. Bank rate means _____?

(a) Rate of interest charged by commercial Banks from borrowers
(b) Rate of interest at which commercial banks discounted bills of their borrowers
(c) Rate of interest allowed by commercial Banks from on their depositors
(d) Rate at which RBI purchases or re-discounts Bills of Exchange of commercial Banks
Q15. Which of the following can be issued payable to bearer?

(a) Cheque
(b) Draft
(c) Bill of Exchange
(d) Demand Promissory Notes
Q1. In case of original demand draft is presented after the duplicate has
already been paid, the bank will _______?
(a) Pay the original demand draft
(b) Pay the original demand draft as well and recover the amount from
the purchaser on the strength of the indemnity bond
(c) Return with remarks “Draft reported lost, duplicate already paid will pay on collecting
bank’s guarantee. In case the original draft is again presented, it should be honoured.”
(d) Return with the remarks payment stopped by the payee
Q2. The Central Bank in India is ______?

(a) The Reserve Bank of India
(b) The State Bank of India
(c) The Andhra Bank
(d) Central Bank of India
Q3. Stock exchange securities do not include?

(a) Debentures certificates
(b) Small debentures issued by port trusts
(c) Government promissory notes
(d) Reverse Repo Rate
Q4. The Definition of ‘Banking’ is given in-

(a) Negotiable Instrument Act, 1881
(b) RBI Act, 1934
(c) The Banking Regulation Act, 1949
(d) Contract Act
Q5. When was SBI established?

(a) April 1, 1935
(b) July 31, 1969
(c) May 5, 1955
(d) July 1, 1955
Q6. All of the following are examples of Quasi negotiable instruments, under
the Negotiable Instrument Act, 1881, except.....?
(a) dividend warrants
(b) share warrants
(c) bearer debentures
(d) promissory note
Q7. Which of the following is not the essential requirement for the endorsement
as per Negotiable Instrument Act, 1881?
(a) It should be on the instrument
(b) It should be made by the holder or the maker
(c) Signatures should be in ink and not by pencil or rubber stamp
(d) It should contain unconditional order
(e) The endorser should sign the endorsement in the same style and with the same
spellings as written in the instrument
Q8. With reference to a cheque which of the following is the “drawee bank”?
(a) The bank that collects the cheque
(b) The payee's bank
(c) The endorsee's bank
(d) The endorser's bank
(e) The bank upon which the cheque is drawn
Q9. Which of the following is not a party of bill of exchange?

(a) The drawer
(b) The drawee
(c) The payee
(d) The endorser
Q10. In terms of Section 5(1) (5) of the Banking Regulation Act, 1949, a
‘banking company’ means any company which...?
(a) accepts deposits from the public
(b) undertakes lending of money
(c) transacts the business of banking in
Q11. Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of
banks have been categorized. Which one of the following statements is not
correct?
(a) Assets belonging to Standard and Sub-Standard category come under category I
(b) Assets belonging to Doubtful category come under category II
(c) Assets belonging to Doubtful and Loss categories come under Category II
(d) Out of total Loan Assets, 90 per cent is Standard and Sub-standard and Doubtful is
10 per cent this lot comes under Category I
Q12. Under which of the following methods of depreciation, amount of

depreciation varies every year?
(a) Written Down Value Method
(b) Straight Line Method
(c) Amount of depreciation does not very on year to year basis
Q13. Usually, the validity period of an Income Tax Refund Order is?
(a) 1 months
(b) 2 months
(c) 3 months
(d) 6 months
Q14. What do you mean by “Outcome Budget”?

(a) It denotes reaction of the media after Budget Papers are approved in the Parliament
(b) It aims to measure performance of the Government in various departments
(c) It is a report submitted by the Government of India indicating made in
different projects by ministries and departments as a first step towards
converting outlays into income
Q15. What is “Stagflation”?

(a) inflation with growth
(b) deflation with growth
(c) inflation after deflations
(d) inflation with depression
(e) None of the aboveQ1. Which of the following efforts fall under Financial Inclusion Plan
(FIP) of RBI/government?
(a) Nationalisation of banks

(b) Priority Sector Lending (PSL) targets
(c) Zero balance accounts, like BSBDA, Jan-Dhan Account, Small Account, etc.
Q2. Which of the following is not true regarding Financial Inclusion Plan?
(a) Relaxed and simplified KYC norms for account opening
(b) Mandatory branches in unbanked villages
(c) BSBDA Accounts with minimum balance criteria
(d) Micro branches to be opened in rural area, that can be operated by Business Correspondents
Q3. According to the new proposal on PSL, what sub-target is to be created for Micro
Enterprises in India by March 2017?
(a) 7 %
(b) 7.5%
(c) 8 %
(d) 8.5 %
Q4. Financial Inclusion means provision of -

(a) Financial services namely, payments, remittances, savings, loans and insurance at
affordable cost to persons not yet given the same
(b) ration at affordable cost to persons not yet given the same
(c) house at affordable cost to persons not yet given the same
(d) education at affordable costs to persons not yet given the same
Q5. What is the full form of 'FINO' - a term we see frequently in financial newspapers?
(a) Financial Investment Network and Operations
(b) Financial Inclusion Network and Operations
(c) Farmers' Investment in National Organization
(d) Farmers' Inclusion News and Operations

(a) Bank Rate
(b) Repo Rate
(e) Pulse Rate

(e) Prime Minister
Q9. Banking and financial services all over the world are regulated usually by the Monetary
Authority of the land. Who controls this function in India?
(b) SEBI
(c) RBI
(d) IRDA
(e) FEDAI
Q10. For which of the following reasons RBI has decided to undertake mid-quarter policy
reviews?
(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
Q11. Cash Reserve Ratio is maintained in the form of?

(a) Government Securities
(b) Balance with Reserve Bank of India
(c) Balance with State Bank of India
Q12. RBI is empowered to prescribe Cash Reserve Ratio ranging between?

(a) five per cent to twenty per cent of net demand and time liabilities
(b) RBI is empowered to vary CRR between 15 percent and 3 percent
(c) three per cent to forty per cent of net demand and time liabilities
(d) One of the above
Q13. The functions of Back office are?

(a) It verifies and settles the deals
(b) It maintains proper record of Book keeping
(c) It submits financial returns of RBI
Q14. Banks can receive deposits from customers up to a maximum period of?
(a) 10 years
(b) 15 years
(c) 20 years
(d) 25 years
Q15. Khandelwal Committee relates to study of ………….. issue in Public Sector Banks?
(a) Capital Adequacy Ratio
(b) Human Resources
(c) Branch Expansion
(d) Foreign Exchange
Q1. RRB is established in _________.
(a) 5 Oct 1936
(b) 7 Oct 1935
(c) 4 Oct 1965
(d) 2 Oct 1975
Q2. Foreign Currency which has a tendency of quick migration is called-

(a) Fiat Currency
(b) Soft Currency
(c) Token Currency
(d) Hot Currency
Q3. The banker is under an obligation to take utmost care in keeping secrecy of the details of
the customer. However, the obligation of secrecy is not considered essential when
(a) a banker is required to give evidence in the court
(b) there is national emergency and disclosure is essential in the public interest
(c) there are clear proofs of reason to the state and when consent is given by the customer to
provide information for the preparation of balance sheet
Q4. Which of the following is the Central Bank of the country?

(a) RBI
(b) SBI
(c) RRB
(d) NABARD
(e) SEBI
Q5. Which of the following is NOT a Govt. sponsored organization?

(a) SIDBI
(b) NABARD
(c) NHB
(d) ICICI Bank
Q6. When a corporate entity wishes to raise money from the market it can do that by issuing
_________.
(a) Commercial Papers
(b) Treasury Bills
(c) KisanVikas Patra
(d) National Savings Certificates
Q7. On the basis of powers drawn mainly in which of the following Acts, RBI regulates and
controls the banks in India?
(a) Banking Regulation Act and RBI Act
(b) RBI Act and Companies Act
(c) Banking Regulation Act and Companies Act
(d) Banking Regulation Act, RBI Act and Negotiable Instruments Act
Q8. With reference to a cheque which of the following is the “drawee bank”?
(a) The bank that collects the cheque
(b) The payee's bank
(c) The endorsee's bank
(d) The endorser's bank
(e) The bank upon which the cheque is drawn
Q9. Which of the following is not a party of bill of exchange?

(a) The drawer
(b) The drawee
(c) The payee
(d) The endorser
Q10. Where the time for payment is not mentioned in a promissory note it is?
(a) invalid instrument
(b) inchoate instrument
(c) no payment can be demanded
(d) payable on demand
Q11. Bank Rate is __________

(a) Rate at which commercial banks borrow long term funds from central Bank.
(b) Rate at which commercial banks borrow short term funds from central Bank.
(c) Currently Bank rate is 6.75%
(d) Both (a) and (c)
Q12. In which year Public Debt Act was passed?

(a) 1938
(b) 1940
(c) 1944
(d) 1948
Q13. Non-Agricultural Market Access (NAMA) word is related to which organization?

(a) WTO
(b) UNCTAD
(c) IMF
(d) World Bank
(e) NDB
Q14. SEBI is related to _________.

(a) Bank
(c) Share Market
Q15. “Micro Credit” means?

I. Loan of very small amount
II. Loans to Corporate Sector
III. Loans amounting Rs 50 lakhs to Rs 5 crores to Medium and small Industries Units
(a) Only (I)
(b) Only (II)
(c) Only (I) and (II)
Q1. Which of the following organisation release World Economic Outlook report?
(a) World Bank
(b) IMF
(c) UNDP
(d) WTO
(e) None of the given options is true
Q2. ICRA, CRISIL and Standard and Poor’s (S&P) are-

(a) Credit rating agencies
(b) NGOs
(c) Financial Institutions
(d) NBFCs
Q3. Which Bank is the Banker to the Indian Government?

(a) Central Bank of India
(c) Punjab National Bank
(d) State Bank of India
Q4. “Primary Deficit “refers to?

(a) Gross Fiscal Deficit minus Interest Payments
(b) Budget Deficit minus Interest Payments
(c) Monetary Deficit minus Interest Payments
(d) Deficit financing by 91 day ad hoc treasury bills
Q5. Open market operations are mainly used as ______?

(a) A fiscal device which assists Government borrowing
(b) A monetary measure to regulate quantity of money in circulation and the cash reserves of
the commercial banks
(c) A measure to counteract extreme trends in business
(d) A measure to influence the balance of payments position
Q6. The RBI has given permission for cash withdrawal at “POS terminals”. What is the full form
of “POS”?
(a) Permitted on Sale
(b) Potential of Service
(c) Point of Sale
(d) Permission of Sale
Q7. “Doing Business Report” is prepared by which of the following organisations every year?
(a) Asian Development Bank (ADB)
(b) World Bank
(c) International Monetary Fund (IMF)
(d) World Trade Organisation (WTO)
Q8. “Yen” is the currency of?

(a) China
(b) South Korea
(c) North Korea
(d) Japan
Q9. Many times we read in financial newspapers/magazines about Systematic Investment Plans
(SIPs). SIPs are an investment option also operated in the mode of?
(a) Mutual Funds
(b) Small Savings Schemes in Post Offices
(c) National Pension Fund
(d) National Saving Certificates
Q10. Which of the following apex body and regulators has asked banks to swap customer
related information so that the frauds and defaults may be prevented in future?
(a) Bombay Stock Exchange (BSE)
(b) Indian Bank’s Association (IBA)
(c) Securities & Exchange Board of India (SEBI)
(d) Reserve Bank of India (RBI)
Q11. As we know the RBI is the apex Bank of India, similarly, the apex Bank of USA is called?
(a) Federal Reserve
(b) The Central bank of USA
(c) Bank of America
(d) People's Bank of USA
Q12. Which of the following rates decided by the RBI is called “Policy Rate”?
(a) Lending Rate
(b) Cash Reserve Ratio
(c) Deposit Rate
Q13. Loan given by the banks to farmers/Agriculture owners etc is known as........?
(a) Corporate loan
(b) Business loan
(c) Priority sector loan
(d) Commercial loan
Q14. The Head Office of which of the following banks is in Mumbai?
(a) Punjab National Bank
(b) Bank of Maharashtra
(c) UCO Bank
(d) Union Bank of India
Q15. Which organisation is an umbrella organisation for all retail payments system in India?
(a) NPCI
(b) SEBI
(c) RBI
(d) NABARD
(e) IRDAI
Q1. Which of the following is the Regulator of the credit rating agencies in India?
(a) RBI
(b) SBI
(c) SIDBI
(d) SEBI
Q2. The logo of Bank of Baroda is known as?

(a) Sun of Bank of Baroda
(b) Baroda sun
(c) Bank of Baroda’s Rays
(d) Sunlight of Bank of Baroda
Q3. One of the major challenges banking industries is facing these days is money laundering.
Which of the following acts/norms are launched by the banks to prevent money laundering in
general?
(a) Know your customer norms
(c) Negotiable Instruments Act
Q4. Lots of Banks in India these days are offering M-Banking Facility to their customers. What is
‘M’ in ‘M-Banking?
(a) Money
(b) Marginal
(c) Message
(d) Mobile
Q5. In India, which of the following agency is responsible for announcing the Foreign Trade
Policy?
(a) RBI
(b) EXIM-Bank
(c) Foreign Ministry
(d) Ministry of Commerce and Industry
Q6. Many a time we read a term MSS in relation to banking transactions. What is the full form
of MSS?
(a) Money Stabilization Scheme
(b) Market Stabilisation Scheme
(c) Maturity and Standardisation Service
(d) Money Stabilization Service
Q7. RBI’s open market operation transactions are carried out with a view to regulate?
(a) Liquidity in the economy
(b) Prices of essential commodities
(c) Inflation
Q8. Open market operations, one of the measures taken by RBI in order to control credit
expansion in the economy means?
(a) Sale or purchase of Govt. securities
(b) Issuance of different types of bonds
(c) Auction of gold
Q9. Cheap Money means?

(a) Low Level of Income
(b) Low Level of Savings
(c) Excess of Black Money
(d) Low Rate of Interest
Q10. The process of the total valuation of the financial capital assets of a country is technically
known as?
(a) Market Capitalization
(b) Gross Domestic Product
(c) Net wealth of the country
(d) Gross Domestic Resources
Q11. The Reserve Bank of India (RBI) keeps on modifying various rates/ratios to keep the flow
of liquidity in the market in balanced situation. Which of the following rates/ratios/indexes is
NOT directly controlled by the RBI?
(a) Cash Reserve Ratio (CRR)
(b) Repo Rate (RR)
(c) Reserve Repo Rate (RRR)
(d) Wholesale Price Index (WPI)
Q12. An agreement between two nations or a group of nations which establishes unimpeded
exchange and flow of goods and services between/among trade partners regardless of national
boundaries is called?
(a) Import Free Agreement
(b) Free Trade Agreement
(c) Export Free Agreement
Q13. In the capital market, the term arbitrage is used with reference to?
(a) Purchase of securities to cover the sale
(b) Sale of securities to reduce the loss on purchase
(c) Simultaneous purchase and sale of securities to make profits from price
Q14. The stance of RBI monetary policy is?

(a) Inflation control with adequate liquidity for growth
(b) Improving credit quality of the Banks
(c) Strengthening credit delivery mechanism
Q15. Currency Swap is an instrument to manage?

(a) Currency risk
(b) Interest rate risk
(c) Currency and interest rate risk
(d) Cash flows in different currency
Q1. The World Bank Group consists of how many organisations-
(a) One
(b) Two
(c) Three
(d) Four
(e) Five
Q2. The World Bank is like a cooperative, made up of --------------- member

countries. These member countries, or shareholders, are represented by a
Board of Governors, who are the ultimate policymakers at the World Bank.
(a) 189
(b) 193
(c) 159
(d) 173
(e) 187
Q3. Name the agency, which is an agency to provide ‘soft-loans’ to developing

countries?
(a) Asian Infrastructure Investment Bank (AIIB)
(b) Organisation of the Petroleum Exporting Countries (OPEC)
(c) Asian Development Bank (ADB)
(d) World Trade Organization (WTO)
(e) International Development Association (IDA)
Q4. On July 15th, 2014 at the sixth summit in Fortaleza, Brazil the member
countries signed the Articles for the New Development Bank (NDB). What is the
authorised capital of NDB?
(a) USD 200 billion
(b) USD 300 billion
(c) USD 500 billion
(d) USD 100 billion
Q5. The first Board of Governors meeting of the BRICS New Development Bank
was held in ____________ on July 7, 2015, where the Bank formally came into
existence as a legal entity.
(a) Brazil
(b) Russia
(c) South Africa
(d) India
(e) China
Q6. The New Development Bank (NDB) aims to mobilise resources for
development projects in BRICS, emerging economies and developing countries.
Where is the headquartered of NDB?
(a) Durban, South Africa
(b) Brasilia, Brazil
(c) Moscow, Russia
(d) Shanghai, China
(e) New Delhi, India
Q7. With an initial funding of $912.7 million, International Development

Association (IDA) was launched on-
(a) 24th September 1960
(b) 17th December 1920
(c) 22nd November 1959
(d) 23rd May 1919
(e) 15th October 1945
Q8. NIBM was established in ____________________ by the Reserve Bank of

India, in consultation with the Government of India, as an autonomous apex
institution for research, training, education and consultancy in bank
management.
(a) 1982
(b) 1949
(c) 1921
(d) 1934
(e) 1969
Q9. NIBM is part of the grand vision of giving a new direction to the banking
industry in India and making the industry a more cost-effective instrument for
national development. NIBM stands for-
(a) Non-Organisation Institute of Bank Management
(b) National Institute of Bureau Management
(c) National Investment of Bank Management
(d) National Institute of Bank Management
Q10. NIBM, an autonomous academic institution, is governed by a Board, its

highest policy-making body. Where is the headquartered of NIBM?
(a) Nashik, Maharashtra
(b) Pune, Maharashtra
(c) Mumbai, Maharashtra
(d) Kolhapur, Maharashtra
(e) Nagpur, Maharashtra
Q11. ___________ is an electronic fund transfer system that operates on a

Deferred Net Settlement (DNS) basis which settles transactions in batches.
(a) NEFT
(b) RTGS
(c) NPCI
(d) BBPS
(e) IMPS
Q12. The Central Office of the Reserve Bank was initially established in
Calcutta (now Kolkata) but was permanently moved to Mumbai in-
(a) 1949
(b) 1937
(c) 1943
(d) 1945
(e) 1934
Q13. The Reserve Bank of India (RBI) is vested with the responsibility of
conducting monetary policy. This responsibility is explicitly mandated under
which act?
(a) Companies Act, 1956
(c) Reserve Bank of India Act, 1934
(d) Banking Regulation Act, 1949
Q14. A facility under which scheduled commercial banks can borrow the
additional amount of overnight money from the Reserve Bank by dipping into
their Statutory Liquidity Ratio (SLR). It is called?
(a) Repo Rate
(b) Reverse Repo Rate
(c) Bank Rate
(d) Marginal Standing Facility (MSF)
(e) Liquidity Adjustment Facility (LAF)
Q15. National Housing Bank (NHB) was set up on ______________ under the
National Housing Bank Act, 1987.
(a) 01st July 1956
(b) 02nd October, 1976
(c) 01st January 1934
(d) 21st May 1956
(e) 09th July 1988
Solutions
S1. Ans.(e)
Sol. The World Bank Group consists of five organisations. These are:-
1. International Bank for Reconstruction and Development (IBRD)
2. International Development Association IDA)
3. International Finance Corporation (IFC)
4. Multilateral Investment Guarantee Agency (MIGA)
5. International Centre for Settlement of Investment Disputes (ICSID)
S2. Ans.(a)
Sol. The World Bank is like a cooperative, made up of 189 member countries. These member
countries, or shareholders, are represented by a Board of Governors, who are the ultimate
policymakers at the World Bank.
S3. Ans.(e)
Sol. International Development Association (IDA) is an agency to provide ‘soft-loans’ to developing
countries.
S4. Ans.(d)
Sol. At the fourth BRICS Summit in New Delhi (2012), the leaders of Brazil, Russia, India, China and
South Africa considered the possibility of setting up a New Development Bank (NDB) to mobilize
resources for infrastructure and sustainable development projects in BRICS and other emerging
economies, as well as in developing countries. the authorised capital of NDB is USD 100 billion.
S5. Ans.(b)
Sol. The inaugural meeting of the Board of Governors of the NDB was chaired by Russia and held on
the eve of the Ufa Summit on 7 July 2015, when the Bank formally came into existence as a legal
entity.
S6. Ans.(d)
Sol. Shanghai, China is the headquartered of New Development Bank (NDB).
S7. Ans.(a)
Sol. With an initial funding of $912.7 million, IDA was launched on September 24, 1960, with 15
signatory countries - Australia, Canada, China, Germany, India, Italy, Malaysia, Norway, Pakistan,
Sudan, Sweden, Thailand, United Kingdom, United States, and Vietnam.
S8. Ans.(e)
Sol. National Institute of Bank Management (NIBM) was established in 1969 by the Reserve Bank of
India, in consultation with the Government of India, as an autonomous apex institution for
research, training, education and consultancy in bank management.
S9. Ans.(d)
Sol. NIBM stands for National Institute of Bank Management.
S10. Ans.(b)
Sol. Pune, Maharashtra is the headquartered of National Institute of Bank Management (NIBM).
S11. Ans.(a)
Sol. National Electronics Funds Transfer (NEFT) is an electronic fund transfer system that operates
on a Deferred Net Settlement (DNS) basis which settles transactions in batches.
S12. Ans.(b)
Sol. The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions
of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially
established in Calcutta but was permanently moved to Mumbai in 1937.
S13. Ans.(c)
Sol. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy.
This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.
S14. Ans.(d)
Sol. Marginal Standing Facility (MSF) is a facility under which scheduled commercial banks can
borrow the additional amount of overnight money from the Reserve Bank by dipping into their
Statutory Liquidity Ratio (SLR).
S15. Ans.(e)
Sol. The Hon’ble Prime Minister of India, while presenting the Union Budget for 1987-88 on
February 28, 1987, announced the decision to establish the National Housing Bank (NHB) as an apex
level institution for housing finance. NHB was set up on July 9, 1988, under the National Housing
Bank Act, 1987.
Q1. Under OLTAS, only a Single Copy Challan is used with a tear-off portion for the Tax Payer.
What does OLTAS stand for-?
(a) On-line Tax Accounting Service
(b) On-line Tax Amounting System
(c) On-line Timing Accounting System
(d) On-line Tax Association Service
(e) On-line Tax Accounting System
Q2. What is the minimum period of maturity prescribed for Commercial Paper (CP)?
(a) 17 Months
(b) 14 Days
(c) 01 Year
(d) 07 days
(e) 05 years
Q3. Which banks are insured by the Deposit Insurance and Credit Guarantee Corporation
(DICGC)?
(a) Foreign Banks functioning in India
(b) Local Area Banks
(c) Regional Rural Banks
Q4. What is the maximum period of maturity prescribed for Commercial Paper (CP)?
(a) 10 years
(b) 06 years
(c) 01 Year
(d) 02 years
(e) 05 years
Q5. Each depositor in a bank is insured by DICGC upto a maximum of _____________________

for both principal and interest amount held by him in the same capacity and same right as on
the date of liquidation/cancellation of bank's licence or the date on which the scheme of
amalgamation/merger/reconstruction comes into force.
(a) Rs.1, 00,000
(b) Rs.2, 00,000
(c) Rs.3, 00,000
(d) Rs.4, 00,000
(e) Rs.5, 00,000
Q6. Which organisation holding the highest/maximum share in NABARD as on 31st March 2016?
(a) Finance Ministry
(c) Reserve Bank of India
(d) Securities and Exchange Board of India
Q7. Who is the present Chairman of SEBI?

(a) Ajay Tyagi
(b) Kshatrapati Shivaji
(c) Yaduvendra Mathur
(d) Shaktikanta Das
(e) Urjit Patel
Q8. At the instance of Government of India Reserve Bank of India (RBI) was constituted a
committee to review the arrangements for institutional credit for agriculture and rural
development (CRAFICARD) on 30 March 1979, under the Chairmanship of-
(a) V K Malhotra
(b) C Rangarajan
(c) B Sivaraman
(d) Hilton Young
Q9. The Government of India, the concerned State Government and the bank, which had
sponsored the RRB contributed to the share capital of RRBs in the proportion of
________________ respectively.
(a) 50%, 15% and 35%
(b) 50%, 35% and 15%
(c) 35%, 50% and 35%
(d) 15%, 50% and 35%
Q10. Regional Rural Banks (RRBs) were established in 1975 under the provisions of the
Ordinance promulgated on the 26th September 1975 and followed by which act?
(a) Companies Act, 1956
(b) RRBs Act, 1976
(c) RBI Act, 1935
(d) Banking Regulation Act, 1949
Q11. FICCI history is closely interwoven with India's struggle for independence, its
industrialisation, and its emergence as one of the most rapidly growing global economies. What
is the meaning of "F" in FICCI?
(a) Follower
(b) Federal
(c) Financial
(d) Federation
Q12. Who was the first Chairman and Managing Director (CMD) of Exim Bank?
(a) Ravneet Kaur
(b) TCA Ranganathan
(c) RC Shah
(d) Kalyan Banerji
(e) Yaduvendra Mathur
Q13. ECGC Ltd. wholly owned by Government of India was set up in ______________ with the
objective of promoting exports from the country by providing Credit Risk Insurance and related
services for exports.
(a) 1935
(b) 1982
(c) 1964
(d) 1949
(e) 1957
Q14. ECGC is essentially an export promotion organisation, seeking to improve the

competitiveness of the Indian exporters by providing them with credit insurance covers. What
is the meaning of "G" in ECGC?
(a) Guarantee
(b) General
(c) Government
(d) Grameen
Q15. AIIB is a new multilateral financial institution founded to bring countries together to
address the daunting infrastructure needs across Asia. AIIB stands for-
(a) Asian Infrastructure Investment Bureau
(b) Asian Infrastructure Investment Bank
(c) Association Infrastructure Investment Bank
(d) Asian International Investment Bank
Solutions
S1. Ans.(e)
Sol. Under On-line Tax Accounting System (OLTAS), only a Single Copy Challan is used with a tear-
off portion for the Tax Payer.
S2. Ans.(d)
Sol. Commercial Paper (CP) can be issued for maturities between a minimum of 7 days and a
maximum of up to one year from the date of issue.
S3. Ans.(d)
Sol. All commercial banks including branches of foreign banks functioning in India, local area banks
and regional rural banks are insured by the DICGC.
S4. Ans.(c)
Sol. Commercial Paper (CP) can be issued for maturities between a minimum of 7 days and a
maximum of up to one year from the date of issue.
S5. Ans.(a)
Sol. Each depositor in a bank is insured up to a maximum of Rs.1,00,000 (Rupees One Lakh) for both
principal and interest amount held by him in the same capacity and same right as on the date of
liquidation/cancellation of bank's licence or the date on which the scheme of
amalgamation/merger/reconstruction comes into force.
S6. Ans.(b)
Sol. paid up capital of NABARD stood at Rs. 5,000 crores as on 31 March 2016. Consequent to the
revision in the composition of share capital between Government of India and RBI, the Government
of India has held Rs. 4,980 crore (99.60%) while Reserve Bank of India holds Rs. 20.00 crore (0.40%).
S7. Ans.(a)
Sol. Ajay Tyagi is the present Chairman of SEBI.
S8. Ans.(c)
Sol. The importance of institutional credit in boosting the rural economy has been clear to the
Government of India right from its early stages of planning. Therefore, the Reserve Bank of India
(RBI) at the insistence of the Government of India, constituted a Committee to Review the
Arrangements For Institutional Credit for Agriculture and Rural Development (CRAFICARD) to look
into these very critical aspects. The Committee was formed on 30 March 1979, under the
Chairmanship of Shri B. Sivaraman, the former member of Planning Commission, Government of
India.
S9. Ans.(a)
Sol. In RRBs, 50% share shall be held by the central government, 15% by the concerned state
government and 35% by the sponsor bank.
S10. Ans.(b)
Sol. Regional Rural Banks were set up by the Government of India under Regional Rural Banks act
1976.
S11. Ans.(d)
Sol. Established in 1927, Federation of Indian Chambers of Commerce and Industry (FICCI) is the
largest and oldest apex business organisation in India. Its history is closely interwoven with India's
struggle for independence, its industrialisation, and its emergence as one of the most rapidly
growing global economies.
S12. Ans.(c)
Sol. Established by the Government of India, we commenced operations in 1982 under the Export-
Import Bank of India Act, 1981 as a purveyor of export credit, mirroring global Export Credit
Agencies. R.C. Shah was the first Chairman and Managing Director (CMD) from 1982 - 1985 of Exim
Bank.
S13. Ans.(e)
Sol. ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.), wholly owned by
Government of India, was set up in 1957 with the objective of promoting exports from the country
by providing Credit Risk Insurance and related services for exports.
S14. Ans.(a)
Sol. ECGC Ltd (Formerly Export Credit Guarantee Corporation of India Ltd.).
S15. Ans.(b)
Sol. The Asian Infrastructure Investment Bank (AIIB) is a new multilateral financial institution
founded to bring countries together to address the daunting infrastructure needs across Asia.
Q1. PSLCs are tradable certificates issued against priority sector loans of banks.
What does meaning of "Cs" in PSLCs?
(a) Cess
(b) Cities
(c) Census
(d) Certificates
Q2. The Banking Ombudsman Scheme is introduced under Section 35A of the
Banking Regulation Act, 1949 by RBI with effect from -
(a) 1995
(b) 1999
(c) 1990
(d) 1982
(e) 1988
Q3. MTSS is a way of transferring personal remittances from abroad to

beneficiaries in India. What does MTSS stand for-
(a) Mobile Transfer Service Scheme
(b) Money Transfer System Scheme
(c) Money Timing Service Scheme
(d) Market Transfer Service Scheme
(e) Money Transfer Service Scheme
Q4. How much cash can payment be made to the beneficiary in India under
MTSS?
(a) Rs 2, 00,000
(b) Rs 50,000
(c) Rs 1, 00,000
(d) Rs 10,000
Q5. RDA is a channel to receive cross-border remittances from overseas

jurisdictions. What does meaning of "A" in RDA?
(a) Account
(b) Assembly
(c) Arrangement
(d) Association
(e) Amount
Q6. NABARD was dedicated to the service of the nation by the late Prime
Minister Smt. Indira Gandhi on-
(a) 12th July 1982
(b) 01st January 1949
(c) 19th July 1980
(d) 15th April 1969
(e) 05th November 1982
Q7. The mission of NABARD is Promote sustainable and equitable agriculture

and rural prosperity through effective credit support, related services,
institution development and other innovative initiatives. What is meaning of "R"
IN NABARD?
(a) Regional
(b) Rural
(c) Reconstruction
(d) Revised
(e) Remittance
Q8. SAT is a statutory body established under the provisions of Section 15K of
the Securities and Exchange Board of India (SEBI) Act, 1992. SAT stands for-
(a) Securities Appellate Tribunal
(b) Securities Appellate Treaty
(c) Securities Association Tribunal
(d) Saving Appellate Tribunal
Q9. The Securities and Exchange Board of India (SEBI) was established on-
(a) 12th April 1999
(b) 12th April 1992
(c) 12th April 1949
(d) 12th April 1990
(e) 12th April 1995
Q10. NABARD was set up with an initial capital of-

(a) Rs 200 crore
(b) Rs 1500 crore
(c) Rs 500 crore
(d) Rs 100 crore
(e) Rs 1000 crore
Q11. At present many public sector banks and one private sector bank are
authorised to handle the Senior Citizens Savings Scheme (SCSS), 2004. Name
the private sector bank, which is authorised to handle the Senior Citizens
Savings Scheme (SCSS), 2004?
(a) ICICI bank
(b) HDFC Bank
(c) Axis Bank
(d) Yes Bank
(e) Kotak Mahindra Bank
Q12. The Government of India has enacted the Micro, Small and Medium
Enterprises Development (MSMED) Act, 2006 in terms of which the definition of
micro, small and medium enterprises. As under a micro enterprise is an
enterprise where investment in plant and machinery does not
exceed..............?
(a) Rs. 100 lakh
(b) Rs. 15 lakh
(c) Rs. 25 lakh
(d) Rs. 50 lakh
Q13. Commercial Paper (CP) is an unsecured money market instrument issued

in the form of a promissory note. In which year Commercial Paper was
introduced in India?
(a) 1975
(b) 1990
(c) 1985
(d) 1955
(e) 1980
Q14. Which Bank of India maintains the Principal Accounts of Central as well as
State Governments at its Central Accounts Section?
(a) IDBI
(b) SBI
(c) SIDBI
(d) NABARD
(e) RBI
Q15. Who are eligible to issue Commercial Paper (CP)?

(a) Corporate
(b) Primary dealers (PDs)
(c) All-India Financial Institutions (FIs)
Solutions
S1. Ans.(d)
Sol. PSLCs stands for Priority Sector Lending Certificates.
S2. Ans.(a)
Sol. The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank
customers for resolution of complaints relating to certain services rendered by banks. The Banking
Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI
with effect from 1995.
S3. Ans.(e)
Sol. Money Transfer Service Scheme (MTSS) are the most common arrangements under which the
remittances are received into the country.
S4. Ans.(b)
Sol. Amounts up to INR 50,000/- may be paid in cash to a beneficiary in India under MTSS.
S5. Ans.(c)
Sol. RDA stands for Rupee Drawing Arrangement.
S6. Ans.(e)
Sol. NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of
RBI and refinance functions of the then Agricultural Refinance and Development Corporation
(ARDC). It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi
on 05 November 1982.
S7. Ans.(b)
Sol. The mission of NABARD is Promote sustainable and equitable agriculture and rural prosperity
through effective credit support, related services, institution development and other innovative
initiatives. NABARD stands for National Bank for Agriculture and Rural Development.
S8. Ans.(a)
Sol. Securities Appellate Tribunal (SAT) is a statutory body established under the provisions of
Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals
against orders passed by the Securities and Exchange Board of India or by an adjudicating officer
under the Act and to exercise jurisdiction, powers and authority conferred on the Tribunal by or
under this Act or any other law for the time being in force.
S9. Ans.(b)
Sol. The Securities and Exchange Board of India (SEBI) was established on April 12, 1992 in
accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
S10. Ans.(d)
Sol. NABARD was set up with an initial capital of Rs.100 crore, its’ paid up capital stood at Rs.
5,000 crore as on 31st March 2016.
S11. Ans.(a)
Sol. Only ICICI Bank are authorized to handle the Senior Citizens Savings Scheme (SCSS), 2004.
S12. Ans.(c)
Sol. The Government of India has enacted the Micro, Small and Medium Enterprises Development
(MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises. As
under a micro enterprise is an enterprise where investment in plant and machinery does not exceed
Rs 25 lakhs.
S13. Ans.(b)
Sol. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a
promissory note. It was introduced in India in 1990.
S14. Ans.(e)
Sol. RBI has maintained the Principal Accounts of Central as well as State Governments at its
Central Accounts Section.
S15. Ans.(d)
Sol. Corporate, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to
issue Commercial Paper (CP).
Q1. NPCI is an umbrella organisation for all retail payments system in India. It was set up with
the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).
What does NPCI stand for-
(a) National Payments Corporation of Industry
(b) National Payments Council of India
(c) Nominal Payments Corporation of India
(d) National Payments Corporation of India
(e) National Product Corporation of India
Q2. In which among the following years NPCI was incorporated-

(a) December 2008
(b) January 2006
(c) April 2010
(d) July 2012
Q3. The Bank for International Settlements (BIS) is the world's oldest international financial
organisation. BIS was established on-
(a) 26th May 1961
(b) 01st October 1949
(c) 14th February 1914
(d) 21st August 1945
(e) 17th May 1930
Q4. Where is the head office of Bank for International Settlements (BIS)?
(a) Zurich, Switzerland
(b) New York, USA
(c) Basel, Switzerland
(d) Berlin, Germany
(e) Geneva, Switzerland
Q5. Under which act NPCI was incorporated as a Section 8?

(a) Banking Regulation Act, 1949
(b) Companies Act 2013
(c) Reserve Bank of India Act, 1934
(d) Societies Registration Act, 1860
Q6. Who was the first Governor of RBI?

(a) C.D.Deshmukh
(b) James Braid Taylor
(c) Osborne Smith
(d) Raghuram Rajan
Q7. Scheduled Banks of India are those banks, which are?

(a) Included in First Schedule of RBI Act, 1934
(b) Not included in First Schedule of RBI Act, 1934
(c) Included in Second Schedule of RBI Act, 1934
(d) Not included in Second Schedule of RBI Act, 1934
Q8. Which of the following banks is not merged with SBI in April 2017?
(a) State Bank of Bikaner & Jaipur
(b) State Bank of Travancore
(c) State Bank of Mysore
(d) Axis Bank
Q9. Which of the following bank is not a private sector bank in India?
(a) Federal Bank
(b) Yes Bank
(c) IndusInd Bank
(d) UCO Bank
Q10. Which private sector bank is recently merged with Kotak Mahindra Bank (KMB)?
(a) ING Vysya Bank
(b) Karur Vysya Bank
(c) Lakshmi Vilas Bank
(d) Jammu and Kashmir Bank
Q11. Currently, which of the following combination has female CMDs or heads?
(a) HDFC, ICICI, Axis Bank
(b) ICICI, Axis Bank, Kotak Mahindra Bank
(c) Yes Bank, Kotak Mahindra Bank, SBI
(d) SBI, ICICI, Axis Bank
Q12. Which two private sector banks have got the license from RBI in 2014?
(a) Bandhan and Yes Bank
(b) Yes Bank and IDFC
(c) IDFC Bank and Bandhan Bank
(d) Axis Bank and ICICI
Q13. Who is conferred with the Central Banker of the Year Award (Global and Asia Pacific) for
2016 by The Banker, the Financial Times Group's monthly publication?
(a) Janet Yellen
(b) Raghuram Rajan
(c) Graeme Wheeler
(d) Mario Draghi
Q14. Which bank first introduced Automated Teller Machine (ATM) in India (1987)?
(a) SBI
(b) Punjab National Bank
(c) Federal Bank
(d) HSBC
Q15. Bank of Rajasthan was merged with which private sector bank?
(a) ICICI Bank
(b) Axis Bank
(c) HDFC Bank
(d) Kotak Mahindra Bank
Solutions
S1. Ans.(d)
Sol. National Payments Corporation of India (NPCI) is an umbrella organisation for all retail
payments system in India. It was set up with the guidance and support of the Reserve Bank of India
(RBI) and Indian Banks’ Association (IBA).
S2. Ans.(a)
Sol. NPCI was incorporated in December 2008 and the Certificate of Commencement of Business
was issued in April 2009. It was incorporated as a Section 25 company under Companies Act 1956
(now Section 8 of Companies Act 2013) and is aimed to operate for the benefit of all the member
banks and their customers.
S3. Ans.(e)
Sol. Established on 17 May 1930, the Bank for International Settlements (BIS) is the world's oldest
international financial organisation. The BIS has 60 member central banks, representing countries
from around the world that together make up about 95% of world GDP.
S4. Ans.(c)
Sol. Basel, Switzerland is the head office of Bank for International Settlements (BIS).
S5. Ans.(b)
Sol. NPCI was incorporated as a Section 25 company under Companies Act 1956 (now Section 8 of
Companies Act 2013) and is aimed to operate for the benefit of all the member banks and their
customers.
S6. Ans.(c)
Sol. Sir Osborne Smith was the first Governor of the Reserve Bank. A professional banker, he served
for over 20 years with the Bank of New South Wales and 10 years with the Commonwealth Bank of
Australia before coming to India in 1926 as a Managing Governor of the Imperial Bank of India. He
held from 01st April 1935 to 30th June 1937.
S7. Ans.(c)
Sol. The scheduled commercial banks are those banks which are included in the second schedule of
RBI Ac 1934. Scheduled Commercial Banks are grouped under following categories:
1. State Bank of India
2. Nationalised Banks
3. Foreign Banks
4. Regional Rural Banks
5. Other Scheduled Commercial Banks
S8. Ans.(d)
Sol. Axis Bank Ltd is the third largest of the private-sector banks in India and it is not merged with
SBI in April 2017.
S9. Ans.(d)
Sol. Founded in 1943, UCO Bank is a commercial bank and a Government of India Undertaking.
S10. Ans.(a)
Sol. ING Vysya Bank has successfully merged with Kotak Bank with effect from April 1, 2015, and
will bear the name Kotak Mahindra Bank.
S11. Ans.(d)
Sol. Arundhati Bhattacharya is currently the Chairman of the State Bank of India, Chanda Kochhar is
the managing director and chief executive officer of ICICI Bank and Shikha Sharma is the Managing
Director & CEO of Axis Bank.
S12. Ans.(c)
Sol. The Reserve Bank of India (RBI) has gave in-principle approvals to infrastructure financier IDFC
Ltd and microlender Bandhan Financial Services Pvt. Ltd to start new banks in 2014.
S13. Ans.(b)
Sol. The former Reserve Bank of India Governor, Raghuram Rajan has been conferred with the
Central Banker of the Year Award (Global and Asia Pacific) for 2016 by 'The Banker', a monthly
publication of the Financial Times Group focussing on banking.
S14. Ans.(d)
Sol. HSBC bank first introduced Automated Teller Machine (ATM) in India (1987).
S15. Ans.(a)
Sol. Bank of Rajasthan was merged with ICICI Bank in 2010.
Q1. IBA adopts a consultative approach to give its views on any issue pertaining
to the banking sector. What is the meaning of "I" in IBA?
(a) International
(b) Institute
(c) Investment
(d) Indian
(e) Increase
Q2. IBA stands for-

(a) Indian Banks' Allocation
(b) Indian Banks' Association
(c) Institute Banks' Association
(d) Indian Banks' Assembly
(e) Indian Billing Association
Q3. IBA was set up in ________ with 22 members to discuss issues of common
interests.
(a) 1946
(b) 1955
(c) 1934
(d) 1921
(e) 1961
Q4. What is the effort of IBA?
(a) Assist and provide common services to members.
(b) Promote sound and progressive banking principles and practices.
(c) Co-ordinate and co-operate on procedural, legal, technical, administration,
professional matters.
(d) Build Image of banking industry through publicity and public relations.
Q5. As on December 28, 2015 the total membership of the IBA is?
(a) 302
(b) 274
(c) 237
(d) 203
Q6. The members of IBA is comprised of-

(a) Public Sector Banks
(b) Private Sector Banks
(c) Foreign Banks having offices in India
(d) Co-operative Banks and
Q7. Managing Committee of the IBA is its governing body, headed by-
(a) Chief Executives
(b) Chief Executive Officer
(c) Governor
(d) Chairman
Q8. Who is present Chairman of IBA?

(a) S S Mundra
(b) Ashwani Kumar
(c) Rajeev Rishi
(d) SS Ahluwalia
(e) Rakesh Sharma
Q9. Where is the headquarter of IBA?

(a) New Delhi
(b) Mumbai
(c) Nagpur
(d) Gurugram
(e) Lucknow
Q10. What is the focus & Priorities of IBA?

(a) The Government of India on policy related issues
(b) Industry unions on wage negotiations and improving industrial relations
(c) Foreign counterparts to widen the horizon and perspectives
(d) Members to encourage inter-bank co-operation and co-ordination
Solutions
S1. Ans.(d)
S2. Ans.(b)
S3. Ans.(a)
S4. Ans.(e)
S5. Ans.(c)
S6. Ans.(e)
S7. Ans.(d)
S8. Ans.(c)
S9. Ans.(b)
S10. Ans.(e)
Q1. Which scheme/act has enables an expeditious and inexpensive forum to bank customers for
resolution of complaints relating to certain services rendered by banks?
(a) Reserve Bank of India Act, 1934
(b) Banking Regulation Act, 1949
(c) Securitization Act 2002
(d) FEMA
(e) Banking Ombudsman Scheme
Q2. The Banking Ombudsman Scheme is introduced by RBI with effect from-
(a) 1991
(b) 1995
(c) 1990
(d) 2002
(e) 2006
Q3. The Banking Ombudsman is a senior official appointed by..............?

(a) Indian Government
(b) President of India
(c) Chief Justice of India
(d) Reserve Bank of India
(e) Finance Ministry
Q4. As on date, there are _________ Banking Ombudsman centre located in India.
(a) 20
(b) 19
(c) 18
(d) 17
(e) 16
Q5. The current Banking Ombudsman scheme has became operative from-
(a) January 2006
(b) September 2002
(c) January 1995
(d) February 2010
Q6. Which among the following complaint, the Banking Ombudsman can receive and consider
any complain related to the efficiency in banking services?
(a) Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.
(b) Failure to issue or delay in issue of drafts, pay orders or bankers’ cheques.
(c) Delays, non-credit of proceeds to parties accounts, non-payment of deposit or non-observance
of the Reserve Bank.
(d) Levying of charges without adequate prior notice to the customer.
Q7. How much amount to be charged by the Banking Ombudsman for filing and resolving
customers’ complaints?
(a) Rs. 10
(b) Rs. 50
(c) Rs. 1
(d) No fee
(e) Rs. 100
Q8. The Banking Ombudsman may award compensation not exceeding ___________________
to the complainant only in the case of complaints relating to credit card operations for mental
agony and harassment.
(a) Rs 5 lakh
(b) Rs 10 lakh
(c) Rs 1 lakh
(d) Rs 15 lakh
(e) Rs 50 lakh
Q9. Which of the following is/are covered under the Banking Ombudsman Scheme 2006?
(a) Scheduled Commercial Banks
(b) Regional Rural Banks
(c) Scheduled Primary Co-operative Banks
Q10. What is the maximum amount of compensation under the Banking Ombudsman Scheme
2006?
(a) Rs 10 lakh
(b) Rs 50 lakh
(c) Rs 1 lakh
(d) Rs 1 crore
(e) No limit
Q11. If a complaint is not settled by an agreement within a period of _________ the Banking
Ombudsman proceeds further to pass an award.
(a) one month
(b) two month
(c) three month
(d) four month
(e) five month
Q12. If one is not satisfied with the decision passed by the Banking Ombudsman, one can
approach the _____________ against the Banking Ombudsmen’s decision.
(a) Appellate Authority
(b) Finance Ministry
(c) Central Board of Direct Taxes (CBDT)
(d) Indian Banks' Association (IBA)
Q13. Appellate Authority is vested with a Deputy Governor of the RBI. Who is not a present
Deputy Governor of the RBI?
(a) S. S. Mundra
(b) N. S. Vishwanathan
(c) Viral V. Acharya
(d) Urjit Patel
(e) B.P. Kanungo
Q14. Which among the following cities, Banking Ombudsman center is not located?
(a) Patna, Bihar
(b) Jaipur, Rajasthan
(c) Bengaluru, Karnataka
(d) Lucknow, Uttar Pradesh
(e) Chennai, Tamil Nadu
Q15. The Banking Ombudsman Scheme is introduced under __________ of the Banking
Regulation Act, 1949 by RBI.
(a) Section 17 A
(b) Section 53 A
(c) Section 49 C
(d) Section 30 B
(e) Section 35 A
Solutions
S1. Ans.(e)
S2. Ans.(b)
S3. Ans.(d)
S4. Ans.(a)
S5. Ans.(a)
S6. Ans.(e)
S7. Ans.(d)
S8. Ans.(c)
S9. Ans.(d)
S10. Ans.(a)
S11. Ans.(a)
S12. Ans.(a)
S13. Ans.(d)
S14. Ans.(d)
S15. Ans.(e)
Q1. Interest on the savings bank accounts is compounded ____?
(a) Daily
(b) Yearly
(c) Quarterly
(d) Half-yearly
Q2. The Head of Reserve Bank of India is?

(a) Chief Executive Officer
(b) Managing Director
(c) Chief Banking Officer
(d) Governor
Q3. Who supplies interest-charts for different maturities and for different rates of interest?
(a) IBA
(b) RBI
(d) IBRD
Q4. Rates of Interest on deposits are determined by ____?

(a) IBA
(c) The Bank Itself
(d) Government of India
Q5. Current account becomes dormant when there are no withdrawals for the last _____?
(a) 3 months
(b) 6 months
(c) 24 months
(d) 12 months
Q6. _______________ is a standard format of Bank Identifier Codes (BIC) for banks to identify
banks and financial institutions globally.
(a) RTGS
(b) IFSC
(c) NEFT
(d) SWIFT
(e) SEPA
Q7. Stock Holding Corporation of India Ltd (SHCIL) was established as a ________ company.
(a) Private Limited
(b) Unlimited
(c) Public limited
(d) Limited Liability Partnership
Q8. The National Stock Exchange (NSE) is the leading stock exchange in India and the fourth
largest in the world by equity trading volume in 2015, according to World Federation of
Exchanges (WFE). Where is the corporate office of NSE?
(a) Gurugram
(b) Chennai
(c) New Delhi
(d) Kolkata
(e) Mumbai
Q9. The Head Quarters of Society for Worldwide Interbank Financial Telecommunication
(SWIFT) is located in ________
(a) Bern, Switzerland
(b) La Hulpe, Belgium
(c) Geneva, Switzerland
(d) New York, USA
(e) Vienna. Austria
Q10. How many codes are there in SWIFT code?

(a) 8
(b) 11
(c) 7
(d) Both (b) and (c)
(e) Both (a) and (b)
Q11. These days Banks are offering Loans against Property. Under which business segment, this
activity may be categorized?
(a) Corporate Banking
(b) Personal Banking
(c) Merchant Banking
(d) Portfolio Management-Services
Q12. What do we mean by “ECB” in financial terms?

(a) Essential Commercial Borrowings
(b) Essential Credit & Borrowings
(c) External Credit & Business
(d) External Commercial Borrowings
Q13. “Currency Swap” is an instrument to manage ____?

(a) Currency Risk
(b) Interest Rate Risk
(c) Currency and Interest Rate Risk
(d) Cash Flows in different currencies
Q14. “Plastic Money” denotes ________?

(a) Bearer cheque
(b) Credit card
(c) Demand Draft
(d) Traveller’s cheque
(e) Gift cheque
Q15. RBI has recently introduced Cheque Truncation System, which means that ______?
(a) Physical movement of a cheque is stopped between banks and instead an electronic image be
exchanged for clearance of funds
(b) The physical movement of a cheque for clearance of funds be made more secure
(c) Issue of cheques to customers be made more secure by introducing more enhanced security
features
(d) A new technology to process payments between Banks exclusively
Solutions
S1. Ans.(a)
S2. Ans.(d)
S3. Ans.(a)
S4. Ans.(c)
S5. Ans.(c)
S6. Ans.(d)
S7. Ans.(c)
S8. Ans.(e)
S9. Ans.(b)
S10. Ans.(e)
S11. Ans.(b)
S12. Ans.(d)
S13. Ans.(d)
S14. Ans.(b)
S15. Ans.(a)
Q1. India was one of the first in Asia to recognize the effectiveness of the EPZ model in
promoting exports. EPZ stands for-
(a) Export Point Zone
(b) External Processing Zone
(c) Export Production Zone
(d) Export Processing Zone
(e) Export Processing Zonal
Q2. Asia's first EPZ was set up in-

(a) Kandla, Gujarat
(b) Indore, Madhya Pradesh
(c) Kolhapur, Maharashtra
(d) Kochin, Kerala
(e) Haridwar, Uttarakhand
Q3. In which among the following year, Asia's first EPZ was set up?
(a) 1959
(b) 1971
(c) 1965
(d) 1956
(e) 1975
Q4. What is the meaning of "E" in SEZs?

(a) Essential
(b) Economic
(c) Electronic
(d) Effective
Q5. SEZs Policy was announced in _________ with the objective of making the SEZs an engine
for economic growth, supported by quality infrastructure and an attractive fiscal package both
at the Central and State level with a single window clearance.
(a) December 1999
(b) October 2010
(c) January 2005
(d) July 1991
(e) April 2000
Q6. The main objectives of the SEZ act are-

(a) Generation of additional economic activity
(b) Promotion of exports of goods and services
(c) Promotion of investment from domestic and foreign sources
(d) Creation of employment opportunities
Q7. Which among the following Incentives and facilities offered to the SEZs is not correct-
(a) Duty-free import/domestic procurement of goods for development, operation and maintenance
of SEZ units.
(b) Exemption from State sales tax and other levies as extended by the respective State
Governments.
(c) Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
(d) 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income
Tax Act for 10 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for
next 5 years.
(e) Exemption from Central Sales Tax.
Q8. ___________ is a specifically delineated duty free enclave and shall be deemed to be
foreign territory for the purposes of trade operations and duties and tariffs.
(a) SEZs
(b) FDI
(c) FIPB
(d) CDR
(e) CSR
Q9. What is the meaning of "S" in SEZs?

(a) System
(b) Simple
(c) Special
(d) Satellite
(e) Service
Q10. Who can set up an SEZ?

(a) Private sector
(b) Public sector
(c) State government
(e) Only (a) and (b)
Solutions
S1. Ans.(d)
S2. Ans.(a)
S3. Ans.(c)
S4. Ans.(b)
S5. Ans.(e)
S6. Ans.(e)
S7. Ans.(d)
S8. Ans.(a)
S9. Ans.(c)
S10. Ans.(d)
Q1. MUDRA is a financial institution has been set up by Government of India for development
and refinancing micro-units’ enterprises. What is the meaning of "A" in MUDRA?
(a) Agency
(b) Association
(c) Assembly
(d) Agent
(e) Alert
Q2. MUDRA stands for-

(a) Micro Units Development & Refinance Agent
(b) Medium Units Development & Refinance Association
(c) Micro Units Department & Refinance Agency
(d) Micro Units Development & Refinance Agency
(e) Micro Unique Development & Refinance Assembly
Q3. The purpose of MUDRA is to provide funding to the non-corporate small business sector
through various Last Mile Financial Institutions like-
(a) Banks
(b) NBFCs
(c) MFIs
Q4. MUDRA Bank, a Non-Banking Finance Company as MUDRA Ltd has been set up as a
subsidiary of............?
(a) SIDBI
(b) IDBI
(c) RBI
(d) NABARD
(e) SBI
Q5. PMMY were launched on 08 April 2015 by the Prime Minister Narendra Modi. What is the
full form of PMMY?
(a) Pradhan Manager MUDRA Yojana
(b) Pradhan Mantri MUDRA Yatra
(c) Pradhan Mantri MUDRA Yojana
(d) Pramukh Mantri MUDRA Yojana
Q6. MUDRA gives loan in how many categories?

(a) Two
(b) One
(c) Three
(d) Four
(e) Six
Q7. Which among the following is not a loan category of MUDRA bank?
(a) Shishu
(b) Arun
(c) Kishor
(d) Tarun
Q8. What is the financial limit Under MUDRA's Shishu scheme?

(a) Rs. 5, 00,000
(b) Rs. 50,000
(c) Rs. 1, 00,000
(d) Rs. 10,000
(e) Rs. 1, 50,000
Q9. What is the financial limit Under MUDRA's Kishor scheme?

(a) Rs. 50,000 to Rs. 10 lakh
(b) Rs. 50,000 to Rs. 3 lakh
(c) Rs. 50,000 to Rs. 1 lakh
(d) Rs. 50,000 to Rs. 2 lakh
(e) Rs. 50,000 to Rs. 5 lakh
Q10. What is the financial limit Under MUDRA's Tarun scheme?

(a) Rs. 40 lakh to Rs. 50 lakh
(b) Rs. 30 lakh to Rs. 40 lakh
(c) Rs. 20 lakh to Rs. 30 lakh
(d) Rs. 10 lakh to Rs. 20 lakh
(e) Rs. 5 lakh to Rs. 10 lakh
Solutions
S1. Ans.(a)
S2. Ans.(d)
S3. Ans.(d)
S4. Ans.(a)
S5. Ans.(c)
S6. Ans.(c)
S7. Ans.(b)
S8. Ans.(b)
S9. Ans.(e)
S10. Ans.(e)
MUDRA
MUDRA, which stands for Micro-Units Development & Refinance Agency Ltd, is a financial institution
being set up by Government of India for development and refinancing micro-units’ enterprises. It
was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY
2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector
through various Last Mile Financial Institutions like Banks, NBFCs, and MFIs.
The biggest bottleneck to the growth of entrepreneurship in the Non–Corporate Small Business
Sector (NCSB) is the lack of financial support to this sector. More than 90% of this sector does not
have access to formal sources of finance. GoI is setting up MUDRA Bank through a statutory
enactment for catering to the needs of the NCSB segment or the informal sector for bringing them
into the mainstream. Pending enactment of an act for MUDRA Bank, a Non-Banking Finance
Company as MUDRA Ltd has been set up as a subsidiary of SIDBI.
Roles and responsibilities of MUDRA

MUDRA would be responsible for refinancing all Last Mile Financiers such as Non-Banking Finance
Companies, Societies, Trusts, Section 8 Companies [formerly Section 25], Co-operative Societies,
Small Banks, Scheduled Commercial Banks and Regional Rural Banks which are in the business of
lending to micro/small business entities engaged in manufacturing, trading and services activities.
MUDRA would also partner with State/Regional level financial intermediaries to provide finance to
Last Mile Financier of small/micro business enterprises.
Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial
products/schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify
the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur
and also to provide a reference point for the next phase of graduation/growth to look forward to.
The financial limit for these schemes is:-
(a) Shishu: - covering loans up to 50,000/-
(b) Kishor: - covering loans above 50,000/- and up to 5 lakh
(c) Tarun: - covering loans above 5 lakh to 10 lakh
MUDRA’s delivery channel is conceived to be through the route of refinancing primarily
to Banks/NBFCs/MFIs. At the same time, there is a need to develop and expand the delivery
channel at the ground level. In this context, there is already in existence, a large number of ‘Last
Mile Financiers’ in the form of companies, trusts, societies, associations and other networks which
are providing informal finance to small businesses.
Pradhan Mantri Mudra Yojana (PMMY) loans have been extended by all Public Sector Banks such as
PSU banks, Regional Rural Banks (RRBs), Cooperative Banks, Private Sector Banks, Foreign Banks,
Micro Finance Institutions and Non-Banking Finance Companies. All loans sanctioned on or
after April 08, 2015 up to a loan size of 10 lakh for non-farm income generating activities will be
branded as PMMY loans.
Q1. __________ an asset, including a leased asset, becomes non performing when it ceases to
generate income for the bank.
(a) NPA
(b) KCC
(c) NPV
(d) GDP
(e) GNP
Q2. NPA stands for-

(a) National performing Assets
(b) New performing Assets
(c) Non production Assets
(d) Non performing Assembly
(e) Non performing Assets
Q3. NPA is a loan or an advance where interest and/or installment of principal remain overdue
for a period of more than ______ days in respect of a term loan.
(a) 100 days
(b) 30 days
(c) 90 days
(d) 60 days
(e) 120 days
Q4. NPA is a loan or an advance where?

(a) The installment of principal or interest there on remains overdue for one crop season for long
duration crops.
(b) The account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
(c) The installment of principal or interest there on remains overdue for two crop seasons for short
duration crops.
Q5. Banks are required to classify NPA further into the ___________ categories based on the
period for which the asset has remained nonperforming and the realisability of the dues.
(a) One
(b) Three
(c) Two
(d) Four
(e) Six
Q6. Which among the following are not the categories of NPA?
(a) Substandard Assets
(b) Profit Assets
(c) Doubtful Assets
(d) Loss Assets
Q7. With effect from 31 March 2005, a ______________ would be one, which has remained
NPA for a period less than or equal to 12 months.
(b) Profit Assets
(c) Doubtful Assets
(d) Loss Assets
Q8. With effect from March 31, 2005, an asset would be classified as _____________ if it has
remained in the substandard category for a period of 12 months.
(b) Profit Assets
(c) Doubtful Assets
(d) Loss Assets
Q9. A ______________ is one where loss has been identified by the bank or internal or
external auditors or the RBI inspection but the amount has not been written off wholly.
(b) Profit Assets
(c) Doubtful Assets
(d) Loss Assets
Q10. Which committee has recommended the setting up of Special Tribunals to reduce the time
required for settling cases?
(a) Kelkar committee
(b) Justice Reddy committee
(c) Rangarajan Committee
(d) Sivaraman Committee
(e) Narasimham Committee
Q11. DRT has been constituted under Section 3 of the Recovery of Debts Due to Banks and
Financial Institutions Act, 1993. DRT stands for-
(a) Debt Recovery Tribunals
(b) Demand Recovery Tribunals
(c) Deposit Recovery Tribunals
(d) Debt Refinance Tribunals
(e) Debt Recovery Treaty
Q12. Securitisation act 2002 enables the banks to issue notices to defaulters who have to pay
the debts within __________ days.
(a) 90 days
(b) 60 days
(c) 30 days
(d) 120 days
Q13. Lok Adalats have been found suitable for the recovery of small loans. They cover NPA up
to -------
(a) Rs. 15 lakhs
(b) Rs. 10 lakhs
(c) Rs. 5 lakhs
(d) Rs. 20 lakhs
(e) Rs. 25 lakhs
Q14. Which organisation/bureau can help by maintaining a data bank which can be assessed by
all lending institutions?
(a) Central Board of Direct Taxes (CBDT)
(b) Securities and Exchange Board of India (SEBI)
(c) Central Statistics Office (CSSO)
(d) Credit Information Bureau (CIB)
(e) National Sample Survey Office (NSSO)
Q15. Compromise Settlement Scheme provides a simple mechanism for recovery of NPA.
Compromise Settlement Scheme is applied to advances below ----------
(a) Rs. 1 crores
(b) Rs. 20 crores
(c) Rs. 50 crores
(d) Rs. 100 crores
(e) Rs. 10 crores
Solutions
S1. Ans.(a)
S2. Ans.(e)
S3. Ans.(c)
S4. Ans.(d)
S5. Ans.(b)
S6. Ans.(b)
S7. Ans.(a)
S8. Ans.(c)
S9. Ans.(d)
S10. Ans.(e)
S11. Ans.(a)
S12. Ans.(b)
S13. Ans.(d)
S14. Ans.(d)
S15. Ans.(e)

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Q1. Interest on the savings bank accounts is compounded ____?

Q2. The Head of Reserve Bank of India is?

Q4. Rates of Interest on deposits are determined by ____?

Q6. One rupee notes bear the signature of..........?

Q7. Mortgage is a..............?

Q9. Which of the following is not a negotiable instrument?

Q12. What do we mean by “ECB” in financial terms?

Q14. “Plastic Money” denotes ________?

Q4. Which of the following terms is not used in Economics or Banking?

Q7. Expand the term ALM as used in Banking/Finance sector?

Q10. What is forex?

Q11. What is stagflation?

Q4. The logo of Bank of Baroda is known as ______?

Q6. A cheque becomes stale after _____?

Q9. What is meant by Repo Rate?

Q10. At present, the Repo Rate is ____?

Q1. Which of the following is NOT a direct tax?

Q3. What is the full form of ‘CORE’ in core banking services?

Q4. Which of the following is not an instrument of money market?

Q5. RBI was nationalized on -

Q8. Ten-rupee notes contain the signature of................?

Q11. In India, National income is estimated by?

Q2. M1, M2, M3 & M4 is used to measure-

Q3. Deflation refers to-

Q4. Which of the following is not a part of the World Bank?

Q8. The headquarter of World Bank is in –

Q10. Open market operations of RBI refers to –

Q11. Which of the following is called “paper gold”?

Q8. When a bank returns a cheque unpaid, it is called?

Q9. A bank's 'fixed deposit' is also referred to as a............?

Q13. Which of the following in NOT a type of cheque issued by an individual?

Q14. Which of the following terms is used in banking?

Q15. “Sensitive Index” of Bombay Stock Exchange is called ……………?

Q1. National Income of India is estimated by?

Q2. Net National Product is equivalent to-

Q3. Nomination facility is available to-

Q4. Off Shore Banking Unit is?

Q11. Which is not e-banking software?

Q12. Which is the feature of IBS (Integrated Banking System)?

Q13. What does CBS stands for in Banking?

Q14. In core banking systems?

Q15. Which of the following is the example of the brand of SBI?

Q2. Branches receive Potential Linked Plan through?

Q3. By “Deemed Exports” it means?

Q5. Capitalization of Reserves is carried out by issue of ___________ to the existing

Q7. Asset Reconstruction Company is associated with..........?

Q13. Deposits under NRE/FCNB accounts are linked to-

Q15. Escrow account is useful/helpful to-

Q1. Where is the headquarter of Federal Bank?

Q4. Co-operative banks are registered with...?

Q5. Apna Sahakari Bank Ltd is located at?

Q7. The essential features of securitization are?

Q8. What are the Rights available to a secured creditor?

Q9. The significance of index linked bonds is?

Q13. What amount of corpus is allocated to set up MUDRA Bank?

Q15. MUDRA Bank as a wholly owned subsidiary of which institutions?

Q1. Which of the following is a correct statement?

Q2. What do you understand by the term ‘Mortgage’?

Q3. Which of the following is NOT a source of funds of a commercial bank?

Q4. The Banking Ombudsman is-

Q5. “Scheduled bank” means a bank

Q11. Expand the term ALM as used in Banking/ Finance sector:

Q1. National Income of India is estimated by?

Q2. Net National Product is equivalent to-