Compliance Quiz

Compliance Quiz Questionnaire
Part1
1) As per NI Act, if the amount in words and figures differs in a cheque……
a) The cheque has to be returned

b) The cheque has to be honoured as per the amount in figures
c) The cheque has to be honoured as per the amount in words
d) None of the above
2) The Customer Service Committee of the Board of every bank should have a
customer service expert as invitee
a) True
b) False
3) Service charges for various products and services of banks are fixed by …………
a) RBI
b) IBA
c) Respective banks
d) Government of India
4) In case of a deceased depositor where nomination is available, the claim should be

settled within ………… days of receipt of claim and relevant documents.
a) 15
b) 30
c) 45
d) 60
5) MCLR stands for
a) Maximum cost of funds based lending rate

b) Marginal cost of funds based lending rate
c) Minimum cost of funds based lending rate
6) A Bill of Exchange is ………….
a) A conditional promise to pay

b) An unconditional order to pay
c) An unconditional promise to pay
d) A conditional order to pay
7) In case of a Promissory Note, there are:

a) 3 Parties
b) 5 Parties
c) 2 Parties
d) 4 Parties
8) Which section of the Negotiable Instruments Act deals with Cheque?
a) Section 6
b) Section 5
c) Section 118
d) Section 7
9) Which of these is not a Negotiable Instrument according to Negotiable Instruments

Act, 1881?
a) Cheque
b) Bill of Exchange
c) Currency Note
d) Promissory Note
10) Which section of Negotiable Instruments Act deals with dishonouring of Cheque?
a) Section 138
b) Section 6
c) Section 9
d) Section 18
11) Where was the first Headquarters of Reserve Bank of India (RBI) ?
a) New Delhi
b) Chennai
c) Kolkata
d) Mumbai
12) The year in which RBI was formed?
a) 1934
b) 1935
c) 1936
d) 1937
13) Who was the first Indian to become the RBI Governor?
a) C D Deshmukh
b) Raghuram Rajan
c) Y V Reddy
d) Manmohan Singh
14) The year in which RBI was nationalized?
a) 1935
b) 1947
c) 1949
d) 1956
15) Which section defines the Constitution of Monetary Policy Committee in Reserve
Bank of India Act 1934?
a) 45ZB
b) 45ZA
c) 42ZB
d) 42ZA
16) Which section of Reserve Bank of India Act 1934 defines the Denominations of
notes?
a) Section 22
b) Section 23
c) Section 24
d) Section 25
17) Which section of Reserve Bank of India Act 1934 provides RBI the Right to issue
bank notes?
a) Section 18
b) Section 22
c) Section 20
d) Section 25
18) Which section of Banking Regulation Act 1949 gives power to Reserve Bank to
impose penalty?
a) Section 39A.
b) Section 42A.
c) Section 35A.
d) Section 47A
19) Which section of Banking Regulation Act 1949 gives power to Central Government
to make rules?
a) Section 7
b) Section 52
c) Section 21
d) Section 38
20) Which of the following section of Banking Regulation Act 1949 directs licensing of
banking companies?
a) Section 20
b) Section 15
c) Section 29
d) Section 22
21) Government of India can print Re. 1 note and coins as per which act?
a) RBI Act, 1934

b) Coinage Act, 2011
c) Paper Currency Act, 1861
d)FRBM Act, 2003
22) Offense of Money Laundering is defined under _____ of Prevention of Money

Laundering Act 2002
a) Section 2
b) Section 3
c) Section 5
d) Section 6
23) PPI stands for…………
a) Pre-payment Instrument
b) Pre-paid Instrument
c) Post-paid Instrument
24) When was the State Bank of India nationalised?
a) 1955
b) 1956
c) 1959
d) 1964
25) In which year the second round of Bank nationalization was done in India?
a) 1979
b) 1974
c) 1980
d) 1988
26) In April 1980, …………….. banks were nationalized
a) 4
b) 6
c) 8
d) 10
27) The first Indian bank to open a branch in foreign soil?
a) State Bank of India

b) Bank of Baroda
c) Punjab National Bank
d) Bank of India
28) Which was the first bank to introduce cheque system in India?
a) Bengal Bank
b) Bank of Hindustan
c) General Bank of India
d) Presidency Bank
29) Which of the following banks were declared as Domestic Systemically Important
Banks (D-SIBs) by the RBI on 31st Aiug‟15?
a) SBI & ICICI Bank

b) ICICI Bank & PNB
c) HDFC Bank & SBI
d) PNB & HDFC
30) Name the micro finance company that becomes the first to start operation as a
commercial bank?
a) PayTm Bank
b) Vodafone m-Pesa Bank
c) Yes Bank
d) Bandhan Bank
31) Which was the first bank to introduce mutual fund?
a) Bank of Baroda
b) ICICI Bank
d) State Bank of India
32) Which was the first bank to introduce credit card in India?
a) Canara Bank
b) Central Bank of India
c) Bank of Baroda
d) ICICI Bank
33) Which was the first bank to introduce Internet banking?
a) Canara Bank
b) ICICI Bank
d) State Bank of India
34) Which was the first bank to introduce ATM in India?
a) HSBC
b) Standard Chartered Bank
c) State Bank of India
d) United Bank of India
35) Which country started first plastic notes?
a) USA
b) England
c) Australia
d) Russia
36) When was general insurance business nationalised?
a. 1938
b. 1971
c. 1973
d. 1993
37) Which was the first Indian bank to get ISO?
a. Canara Bank
b. Syndicate Bank
c. State Bank of India
d. Axis Bank
38) The liberalization of Indian Banking and Regulation was done based on
recommendation of _______?
a. R Gandhi Committee
b. Narasimham Committee
c. Basel Committee
d. Khusro Committee
39) Which of the following is a financial ratio that gives a measure of a company's ability
to meet its financial losses?
a. Cash Reverse Ratio

b. Leverage Ratio
c. Statutory Liquidity Ratio
d. Loan-to-Value Ratio
40) What is the full form of NIM?
a. Net Interest Margin

b. Net Involvement Margin
c. Net Involution Margin
d. None of these.
41) "Basel Committee on Banking Supervision" is also known as _______.
a. Bank for International Settlements Committee

b. Banking Regulation Committee
c. Financial Stability Board
d. Global Financial System
42) Which among the following is called the rate of interest charged by RBI for lending
money to various commercial banks by rediscounting of the bills in India?
a. Bank Rate
b. Discount Window
c. Monetary Policy
d. Overnight Rate
43) What is the term for recession occurring two times with a small gap in between?
a. Deep Recession
b. Deflation
c. Double-dip Recession
d. Double Inflation
44) What is the full form of SWIFT?
a. Safe Window for Interbank Financial Transactions

b. Safe Window In case of Financial Transaction
c. Society for Worldwide Interbank Financial Telecommunication
d. Safe Window Institute For Transactions
45) What is the full form of NDTL?
a. New Demand & Tenure Liabilities

b. Net Demand & Time Liabilities
c. National Deposits & Total Liquidity
d. Net Demand & Tax Liabilities
46) What is the full form of CVV?
a. Call Verification Value

b. Card Verification Value
c. Credit Verification Value
d. None
47) 'Subprime lending' is a term applied to the loans made to _________.
a. Those borrowers who do not have a good credit history

b. Those borrowers who have a good credit history
c. Those borrowers who do not have a good debit history
d. Those borrowers who have a good debit history
48) What is the full form of IRR?
a. Internal Rate of Return

b. Internal Reserve Ratio
c. Internal Rate of Ratio
d. Internal Recession Rate
49) FATCA stands for
a. Foreign Account Trade Company Act

b. Foreign Account Tax Compliance Act
c. Financial Account Tax Compliance Act
d. Fiscal Account Tax Compliance Ac
50) As per the provisions of which act all financial institutions have to maintain a record
for all form of transactions?
a. Companies Act, 1956

b. Credit Information (Companies Regulation Act, 2005)
c. Information Technology Act, 2000
d. PMLA Act, 2002
51) Which of the following is the clearing agency for Government securities?
a. GOI
b. RBI
c. CCIL
d. SEBI
52) Banks are required to maintain SLR under which act?
a. Section 24 of the Banking Regulation Act

b. Section 35 of the Negotiable Instrument Act, 1881
c. Section 24 of RBI Act
d. Section 40 of Indian Contract Act, 1872
53) Which of the following is governed by the provisions of Section 42 of the Reserve
Bank of India Act, 1934?
a. Bank rate
b. Reverse Repo Rate
c. SLR
d. CRR
54) Whose signature does an Indian currency note bear?
a. Finance Minister
b. Finance Secretary
c. RBI Governor
d. The President
55) The Definition of „Banking‟ is given in _______
a. Negotiable Instrument Act, 1881

b. RBI Act, 1934
c. Banking Regulation Act, 1949
d. Indian Contract Act, 1872
56) On 6th Aug‟15 the Lok Sabha adopted the Negotiable Instruments (Amendment) Bill
2015 that enables the _________.
a. Enable Cheque collections on Electronic Mode & Proposed to change the definition
of Cheques
b. Proposed to change the definition of Cheques & Lift the penalty over bouncing
cheques
c. Lift the penalty over bouncing cheques & Proposed to change the definition of
Cheques
d. Increase the penalty over bouncing cheques & Enable Cheque collections on
Electronic Mode
57) Name the initiative launched by the then Finance Minister Arun Jaitely to revamp
functioning of public sector banks, PSBs on 14th Aug‟15?
a. Seven Plan
b. Maulik Niti
c. BankNiti
d. Indradhanush
58) What happens if a crossed cheque is presented for payment?
a. It can be paid only through a banker

b. It cannot be paid at all
c. It can be paid across the counter in another bank
d. None of the above
59) Which organization provides guarantee to the exporters?
a. Exim Bank
b. Export Credit Guarantee Corporation
c. Reserve Bank of India
d. Registrar of companies
60) EXIM bank was established in the year?
a. 1957
b. 1992
c. 1982
d. 1981
61) Which bank is Apex body in India for Agricultural Development?
a. RRB
b. NHB
c. NABARD
d. RBI
62) Who regulates the Mutual Funds in India?
a. FRBI
b. SEBI
c. SIDBI
d. RBI
63) What is the full form of CERSAI?
a. Combined Registry of Securitization Asset Reconstruction and Security Interest

b. Combined Registry of Securitization Agency Reconstruction and Security Interest
c. Central Registry of Securitization Asset Reconstruction and Security Interest
d. Central Registry of Securitization Agency Reconstruction and Security Interest
64) A Credit Bureau is governed by which of the following act?
a. Securities and Exchange Board of India Act, 1992

b. Reserve Bank of India Act, 1934
c. Credit Information Companies (Regulation) Act of 2005
d. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
65) Which of the following is India‟s first Credit Information Company?
a. CRISIL
b. CIBIL
c. SMERA
d. CERSAI
66) Which of the following is Asia‟s first stock exchange?
a. BSE
b. NSE
c. PSE
d. CSE
67) Among the following banks, which bank has been renamed as Axis Bank Ltd?
a. HDFC Bank
b. Centurion Bank
c. Lord Krishna Bank
d. UTI Bank
68) Which of the following scheme was formulated by RBI?
a. Banking Ombudsman Scheme

b. Jan Dhan Yojana
c. MUDRA Bank Yojana
d. Boutique Financing Scheme
69) What does RBI regulate through Open Market Operation Transactions?
a. Flow of Foreign Direct Investment

b. Borrowing powers of the banks
c. Inflation
d. Liquidity in economy
70) What is the most powerful tool used by the Reserve Bank of India to control
inflation?
a. Raise interest rates
b. Raise current supply
c. Reduce current supply
d. Reduce interest rates
71) Which of the following is the correct definition of Hot Money?
a. This is the fund which is dumped into a country to get the advantage of a favourable
interest rate
b. This is the fund which is provided by a bank in US $ at very short notice and at a very
high rate of interest and for a longer period of repayment
c. This is the fund which is pushed into market through illegal methods
72) Where is the Bank of International Settlement headquartered?
a. Belgium
b. France
c. Germany
d. Switzerland
73) Which one of the following is the special drawing right given by the International
Monetary Fund to its member countries?
a. Cold money
b. Hot money
c. Paper gold
d. None of these
74) What is the full-form of NBFC?
a. Non-Bank Financial Competition

b. Non-Bank Foreign Company
c. Non-Banking Financial Company
d. Non-Banking Finance Corporation
75) _______ Life insurance policy is provided under PMJJBY?
a. Whole life
b. Term insurance
c. Unit linked insurance plan
d. Endowment plan
76) Among the following, which type of banking system works on the principles of
'sharia'?
a. Corporate Banking System
b. Shadow Banking
c. Islamic Banking
d. Payments Bank System
77) Frauds, once detected, are to be reported to RBI within ……….. days of detection
a. 7
b. 14
c. 21
d. 28
78) Expand the term LIBOR as used in financial banking sectors?
a. Local Indian Bank Offered Rate

b. London-India Bureau of Regulations
c. Liberal International Bank Official Ratio
d. London Inter Bank Offered Rate
79) Which of the following is not the function of the Reserve Bank of India ?
a. Acting as banker to the Government

b. Keeping of Foreign Exchange Reserve
c. Issuing of one rupee notes and coins
d. Regulating credit in the country
80) ATMs that are owned and managed by non-banking entities are known as –
a. Red Label ATMs

b. White Label ATMs
c. Green Label ATMs
d. Blue Label ATMs
81) Who will act as the banker to the Government of India?

(a) State Bank of India
(b) Reserve Bank of India
(c) NABARD
(d) Nationalised Banks
(e) Central Bank of India
82) Which of the following is the purpose of introducing “Know Your Customer” norms
by the banks?
A. Identifying people who do not pay Income Tax

B. To bring more and more people under the banking net
C. To ensure that the money deposited in banks has come from genuine sources
D. None of the Above
83) What is the maximum amount a customer can keep in the account with a Payments
Bank?
a. Rs. 10,000/-
b. Rs. 25,000/-
c. Rs. 50,000/-
d. Rs. 1,00,000/-
84) When RBI provides a loan to the bank for short-term between 1 to 90 days, RBI
takes some interest from the bank which is termed as ……….
a) Repo Rate
b) Reverse Repo Rate
c) CRR
d) SLR
85) An account maintained by an Indian Bank in a foreign country
a. VOSTRO Account
b. NOSTRO Account
c. Both of the above
d. None
86) When was the Banking Ombudsman scheme first introduced in India?
a. 1995
b. 1996
c. 2000
d. 2001
87) What is the full form of FEMA?
a. Fixed Entity Management Act

b. Foreign Exchange Management Act
c. Foreign Entity Management Act
d. Finance Establishment Management Act
88) Which is the largest foreign bank in India?
a. HSBC
b. Citi Bank
c. Standard Chartered Bank
d. Deutshce Bank
89) Which is correct about PSL targets for Foreign banks in India?
a. It is not applicable on foreign banks

b. It is applicable on foreign banks having 50 or more branches
c. It is applicable on foreign banks having 20 or more branches
d. It is applicable on all foreign banks
90) A Small Finance Bank in India has ……% of its ANBC as PSL target
a. 40
b. 50
c. 60
d. 75
91) Which was the first small finance bank in India?
a. Capital Small Finance Bank Limited

b. Jana Small Finance Bank
c. Ujjivan Small Finance Bank
d. Equitas Small Finance Bank
92) When was the Banking correspondent scheme launched by RBI?
a. 2002
b. 2005
c. 2001
d. 2006
93) Who can work as a Banking Correspondent?
a) Individuals
b) NGOs
c) Micro-finance Institutions
d) All of the above
94) Who is the chairperson of the Monetary Policy committee of India?
a) Finance Minister
b) Prime Minister
c) RBI Governor
d) Chief Economic Advisor
95) What is meant by Open Market Operations?
a) Purchase and sale of the Government Securities by RBI

b) Rationing of the credit allocated by commercial banks
c) Request by the RBI to the commercial banks to take certain measures
96) Which department of the RBI offers the facility of opening deposit accounts to other
banks?
a) DOR
b) DAD
c) DOS
97) What is the full form of OSMOS?
a) On Site Surveillance and Monitoring System

b) Off Site Surveillance and Monitoring System
c) Over-Simplified Method of Surveillance
d) On Site Migration of System
98) Which of the following name is used to refer to the RBI?
a) Reserve Street
b) Credit Street
c) Mint Street
99) For which of these countries the RBI has served as the central bank in the past?
a) Myanmar
b) Nepal
c) Sri Lanka
d) All of the above
100) Who wrote the book The Problem of the Rupee – Its origin and its solution”, which
gave the concept of RBI?
a) B.R Ambedkar
b) Jawahar Lal Nehru
c) Mahatma Gandhi
d) Raja Ram Mohan Rai
Part 2
1. In case of a company, the beneficial owner is the natural person who owns
……….% or more shares of the company.
a. 15
b. 20
c. 25
d. 30
2. Which one of the following is not an Officially Valid Documents for KYC?
a. Driving License
b. Ration Card
c. PAN Card
d. Passport
3. Within ……… days of opening a savings account, the KYC details have to be
uploaded to CKYCR
a. 5
b. 7
c. 10
d. 15
4. ………… means a bank which is incorporated in a country where it has no

physical presence
a. Shell Bank
b. Investment Bank
c. Private Bank
5. KYC stands for ……….
a. Know Your Credit

b. Know Your Customer
c. Know Your Client
6. Banks can outsource decision-making functions of determining compliance with

KYC norms
a. True
b. False
7. Customers shall be categorized as ………… at the time of opening the account
a. Low, Medium, High

b. Comparatively Low, Comparatively Medium, Comparatively High
8. Introduction is mandatory to open a bank account
a. True
b. False
9. The aggregate of all credits in a „Small Account‟ during a financial year does not
exceed Rupees ………
a. 10,000/-
b. 50,000/-
c. 1,00,000/-
d. 2,00,000/-
10. The maximum period a Small Account can continue without completing full KYC
a. 12 months
b. 24 months
c. 36 months
d. 48 months
11. Re-KYC shall be carried out at least once in every ….. years for high risk
customers
a. One
b. Two
c. Three
d. Eight
12. If PAN is not available for a savings bank customer, ………. has to be obtained
a. Form 60
b. Form 61
c. Either of the above
13. PEP stands for

a. Politically Elite Person
b. Politely Exposed Person
c. Politically Exposed Person
14. Banks have to maintain records of transactions for at least …… years from the
date of transaction.
a. Three
b. Five
c. Seven
d. Ten
15. Cash Transaction Report (CTR) is to be submitted to …………
a. RBI
b. Finance Ministry
c. Defense Ministry
d. FIU-IND
16. FATF stands for ……
a. Financial Action Task Force

b. Financial Agent for Terrorist Finance
c. Financial Action Target Force
17. Payment of a cheque shall not be made if it is presented beyond …….. months
from the date of the cheque
a. Two
b. Three
c. Six
d. Nine
18. Demand Draft shall not be made from cash payment of Rupees ………. and
above
a. 10,000/-
b. 20,000/-
c. 50,000/-
19. Who approves registration of FCRA Account?

a. RBI
b. Ministry of Home Affairs
c. Ministry of Defense
20. Banks are eligible for reimbursement up to a maximum of Rs. ………. Lakhs of
capital expenditure for setting up a currency chest.
a. 10
b. 25
c. 50
d. 100
21. Banks are paid an incentive of Rs. …. per bag of coins distributed over the
counter
a. 25
b. 50
c. 75
d. 100
22. The minimum amount of deposit into / withdrawal from currency chest is Rupees
…. Lakhs
a. 1
b. 2
c. 3
d. 5
23. Under the LRS, resident individuals are permitted to freely transfer up to USD
…….. per financial year
a. 1,00,000/-
b. 2,00,000/-
c. 2,50,000/-
d. 3,00,000/-
24. Any resident individual may remit up-to USD …….. in one FY as gift to a person
residing outside India or as donation to an organization outside India
a. 1,00,000/-
b. 2,00,000/-
c. 2,50,000/-
d. 3,00,000/-
25. A NRE account can be opened as a joint account with a resident relative.
a. True
b. False
26. FCNR (B) can be opened as …….
a. Savings Account
b. Fixed Deposit
c. Recurring Deposit
d. All of the above
27. Opening of accounts by individuals from Pakistan requires prior approval of …..
a. RBI
b. Ministry of Home Affairs
c. Ministry of Finance
d. Any of the above
28. Banks are required to furnish a Flash Report for frauds involving amounts of
Rupees ……. million and above within a week of noticing such frauds.
a. 10
b. 25
c. 50
d. 100
29. Banks are required to constitute a Special Committee of the Board for
monitoring and follow up of cases of frauds (SCBF) involving amounts of Rupees
…… million and above
a. 10
b. 25
c. 50
d. 100
30. Cash shortage more than Rupees …….. is to be treated as fraud
a. 10,000/-
b. 15,000/-
c. 20,000/-
d. 25,000-
31. The threshold for monitoring accounts under Early Warning Signal is Rupees
……
a. 100 million
b. 250 million
c. 500 million
d. 1000 million
32. In case of frauds, banks must complete staff accountability exercise within ….
Months from the date of classification as a fraud.
a. One
b. Two
c. Three
d. Six
33. Legal audit is required to be carried out for exposures of Rs. …… crore and
above
a. One
b. Five
c. Ten
d. Fifty
34. The Central Fraud Monitoring Cell (CFMC) of RBI is situated at ……..
a. Bangalore
b. Chennai
c. Mumbai
d. Delhi
35. A micro manufacturing enterprise is an enterprise where investment in plant and

machinery does not exceed Rs. ……
a. 5 Lakhs
b. 10 Lakhs
c. 25 lakhs
d. 50 Lakhs
36. A micro service enterprise is an enterprise where the investment in …… does not
exceed Rs. 10 lakhs
a. Plant
b. Equipment
c. Machinery
37. Which one of the following is not a proof of investment in plant and machinery by
an MSME
a. A copy of the invoice of the purchase of plant and machinery

b. Gross block for investment in plant and machinery as shown in the audited
accounts
c. A certificate issued by a Chartered Accountant regarding purchase price of plant
and machinery
d. GST Returns
38. What is the maximum loan under priority sector can be provided to a service
enterprise under MSME?
a. No limit
b. 10 Lakhs
c. 50 Lakhs
d. 100 Lakhs
39. Banks are required to achieve a sub-target of …….% of ANBC, as MSME loans
a. 5
b. 7
c. 7.5
d. 8.5
40. Banks are mandated not to accept collateral security in cases of loans up to Rs.
…. Lakhs to MSE sector
a. 2
b. 5
c. 10
d. 25
41. As per BCSBI standards, banks are required to dispose MSME loans up to Rs. 5
Lakhs with in ……… weeks
a. One
b. Two
c. Three
d. Four
42. Banks are required to achieve a sub-target of …….% of ANBC, as agriculture

loans
a. 15
b. 17
c. 18
d. 20
43. ANBC stands for

a. Adjusted Net Banking Credit
b. Arrived Net Banking Credit
c. Annual Net Banking Credit
44. Farmers with landholding up to …… hectares is known as Marginal Farmers
a. 1
b. 2
c. 3
d. 4
45. Education loan up to Rs. ….. lakh is treated as priority sector loan
a. 5
b. 10
c. 15
d. 20
46. Staff housing loans can be treated as priority sector loans
a. True
b. False
47. Housing loans to individuals up to Rs. ……. Lakhs in metropolitan centres are
treated as priority sector loans
a. 15
b. 25
c. 35
d. 45
48. PSLC stands for
a. Priority Sector Land Certificate

b. Priority Sector Lending Certificate
c. Public Sector Lending Certificate
49. No loan related and adhoc service charges/inspection charges should be levied
on priority sector loans up to Rs……
a. 10,000/-
b. 15,000/-
c. 20,000/-
d. 25,000/-
50. Under this segment funds are transacted for a period between 2 days and 14
days
a. Call Money
b. Notice Money
51. Under ……. market, funds are transacted on an overnight basis
a. Call Money
b. Notice Money
52. ……. is an unsecured money market instrument issued in the form of a

promissory note
a. Certificate of Deposit
b. Commercial Paper
53. To issue Commercial Paper, the tangible net worth of the company should not be
less than Rs….. crore
a. 2
b. 4
c. 6
d. 8
54. What is the minimum maturity period of a commercial paper?
a. 7 days
b. 14 days
c. 21 days
d. 28 days
55. What is the maximum maturity period of a Certificate of Deposit issued by

banks?
a. 1 year
b. 2 years
c. 5 years
56. Banks/FIs can not buy back their own Certificate of Deposits before maturity.
a. True
b. False
57. NCD stands for
a. Non-convertible Debts
b. Non-currency Debts
c. Non-convertible Debentures
58. What is the minimum face value of an NCD?
a. Rs. 5 lakhs
b. Rs. 10 lakhs
c. Rs. 50 lakhs
59. LEI stands for
a. Lead Entity Identifier

b. Legal Entity Identifier
c. Loan Entity Identifier
60. ECB stands for
a. European Central Bank

b. External Credit Bank
c. Externa Commercial Borrowing
61. What is the minimum average maturity period of ECB raised for repayment of
Rupee loans availed domestically for capital expenditure?
a. 1 year
b. 5 years
c. 7 years
d. 10 years
62. Remittances against normal imports should be completed not later than ….
months from the date of shipment
a. One
b. Two
c. Six
d. Twelve
63. Currency Declaration Form (CDF) is not required if aggregate value of foreign
currency notes (cash portion) alone brought at any one time does not exceed
USD …… or its equivalent.
a. 1000
b. 2000
c. 5000
d. 10000
64. A trade in which the goods acquired do not enter the domestic tariff area
a. Import Trade
b. Merchanting Trade
c. Export Trade
65. BLBC stands for
a. Bank Level Block Committee

b. Block Level Banker‟s Committee
c. Block Level Business Committee
66. SLBC meetings are required to be held at ……….. intervals
a. Fortnightly
b. Monthly
c. Quarterly
d. Half-yearly
67. Banks should report the data on Counterfeit Notes to RBI on a ……basis.
a. Weekly
b. Monthly
c. Quarterly
68. NRLM stands for
a. National Rural Land Mission

b. Natural Rural Livelihoods Mission
c. National Rural Livelihoods Mission
69. Kisan Credit Card (KCC) scheme was introduced in …..
a. 1996
b. 1997
c. 1998
d. 1999
70. A bank can grant loans and advances on the security of its own shares.
a. True
b. False
71. With out the prior approval/knowledge of the …….., a bank should not grant any
loans to the relatives of its Directors.
a. Board
b. RBI
c. DFS
72. Unless sanctioned by the Board of Directors/Management Committee, banks

should not grant loans and advances aggregating Rupees…….. and above to the
directors (of other banks.
a. 5
b. 10
c. 20
d. 25
73. Banks are required to maintain minimum CRR balances up to ….. per cent of the
average daily required reserves for a reporting fortnight on all days of the
fortnight
a. 90
b. 95
c. 100
74. What is the current rate of interest paid by RBI on the CRR balances maintained
by banks?
a. Repo
b. Reverse Repo
c. Zero
75. Diversion of funds is a valid reason to classify a borrower as willful defaulter
a. True
b. False
76. CFT stands for …..
a. Credit Finance Transfer

b. Combating Financing of Terrorism
c. Counter Financing of Terrorism
77. At least ….. percent of banking outlets opened by a bank during a financial year
should be in unbanked rural centres.
a. 10
b. 15
c. 20
d. 25
78. Closure of a banking outlet in rural centres, require approval of ……….
a. RBI
b. DFS
c. DCC/DLRC
79. There will be zero liability to the customer in case of third party breach where the
deficiency lies neither with the bank nor with the customer but lies elsewhere in
the system, and the customer notifies the bank within ……. working days of
receiving the communication from the bank regarding the unauthorised electronic
transaction.
a. One
b. Three
c. Seven
d. Fourteen
80. How many Small Finance Banks operate in India?
a. 7
b. 10
c. 15
d. 20
81. What is the compensation to be paid to the customer if failed ATM transaction is
not reversed within 5 days?
a. Rs. 10/- per day

b. Rs. 50/- per day
c. Rs. 100/- per day
82. UPI stands for

a. Uninterrupted Payments Interface
b. Unified Payments Interface
c. United Payments Interface
83. IMPS stands for
a. Internet Payment System

b. Immediate Payment System
c. Indian Payment System
84. Banks may provide the facility of withdrawal of cash at any merchant
establishment through PoS devices with a daily limit of Rs…… at Tier I and II
centres.
a. 1000/-
b. 1500/-
c. 2000/-
d. 2500/-
85. RTGS facility is available for customers from …… am
a. 6 am
b. 7 am
c. 8 am
d. 8.30 am
86. Balance enquiry at own bank ATM shall not be treated as part of free ATM
transactions.
a. True
b. False
87. A customer can opt for not to avail nomination facility at the time of opening
account
a. True
b. False
88. If principal or interest is overdue between 1-30 days, the account is termed as….
a. SMA 0
b. SMA 1
c. SMA 2
89. SMA accounts with exposure of Rs. …. Million and above shall be reported to
CRILIC
a. 10
b. 25
c. 50
d. 100
90. IBC stands for
a. Insolvency and Bankruptcy Code

b. Insolvency and Banking Code
c. Indian Bankruptcy Code
91. Additional provisions to the tune of …..% of total outstanding is to be made if a

viable resolution plan is not implemented within 180 days from the end of the
review period.
a. 10
b. 15
c. 20
d. 25
92. BSBDA Stands for
a. Basic Super Bank Depository Account

b. Basic Savings Bank Deposit Account
c. Bulk Savings Bank Deposit Account
93. Any acquisition of shareholding / voting rights of …. per cent or more of the paid-
up capital of a private sector bank in India shall be subject to obtaining prior
approval from the Reserve Bank of India
a. 5
b. 7
c. 9
d. 10
94. FDI in private sector banks in India is limited up to …. Per cent of the paid up
capital of the bank.
a. 49
b. 74
c. 86
95. At least ….. percent of the paid up share capital of private sector banks in India
shall be held by resident Indians.
a. 24
b. 25
c. 26
d. 74
96. Rate of interest for savings account balance is determined by
a. RBI
b. Respective Banks
c. DFS
97. Bulk deposit means deposits of Rs….. and above
a. One Crore
b. Two Crore
c. Three Crore
d. Five Crore
98. Banks can pay additional interest up to …… percent for deposits maintained by
staff members
a. 0.25
b. 0.50
c. 1
d. 2
99. Banks have the freedom to offer term deposits without premature withdrawal option.
a. True
b. False
100. EBLR stands for
a. European Bank Lending Rate

b. External Benchmark based Lending Rate
101. In case of a company, the beneficial owner is the natural person who
owns ……….% or more shares of the company.
e. 15
f. 20
g. 25
h. 30
102. Which one of the following is not an Officially Valid Documents for KYC?
e. Driving License
f. Ration Card
g. PAN Card
h. Passport
103. Within ……… days of opening a savings account, the KYC details have to
be uploaded to CKYCR
e. 5
f. 7
g. 10
h. 15
104. ………… means a bank which is incorporated in a country where it has

no physical presence
e. Shell Bank
f. Investment Bank
g. Private Bank
h. None of the above
105. KYC stands for ……….
e. Know Your Credit

f. Know Your Customer
g. Know Your Client
106. Banks can outsource decision-making functions of determining
compliance with KYC norms
c. True
d. False
107. Customers shall be categorized as ………… at the time of opening the

account
e. Low, Medium, High

f. Comparatively Low, Comparatively Medium, Comparatively High
g. Both of the above
108. Introduction is mandatory to open a bank account
c. True
d. False
109. The aggregate of all credits in a „Small Account‟ during a financial year
does not exceed Rupees ………
e. 10,000/-
f. 50,000/-
g. 1,00,000/-
h. 2,00,000/-
110. The maximum period a Small Account can continue without completing full
KYC
e. 12 months
f. 24 months
g. 36 months
h. 48 months
111. Re-KYC shall be carried out at least once in every ….. years for high risk
customers
e. One
f. Two
g. Three
h. Eight
112. If PAN is not available for a savings bank customer, ………. has to be
obtained
e. Form 60
f. Form 61
g. Either of the above
113. PEP stands for
e. Politically Elite Person

f. Politely Exposed Person
g. Politically Exposed Person
114. Banks have to maintain records of transactions for at least …… years

from the date of transaction.
e. Three
f. Five
g. Seven
h. Ten
115. Cash Transaction Report (CTR) is to be submitted to …………
e. RBI
f. Finance Ministry
g. Defense Ministry
h. FIU-IND
116. FATF stands for ……
e. Financial Action Task Force

f. Financial Agent for Terrorist Finance
g. Financial Action Target Force
117. Payment of a cheque shall not be made if it is presented beyond ……..

months from the date of the cheque
e. Two
f. Three
g. Six
h. Nine
118. Demand Draft shall not be made from cash payment of Rupees ……….
and above
e. 10,000/-
f. 20,000/-
g. 50,000/-
119. Who approves registration of FCRA Account?
e. RBI
f. Ministry of Home Affairs
g. Ministry of Defense
120. Banks are eligible for reimbursement up to a maximum of Rs. ……….
Lakhs of capital expenditure for setting up a currency chest.
e. 10
f. 25
g. 50
h. 100
121. Banks are paid an incentive of Rs. …. per bag of coins distributed over the
counter
e. 25
f. 50
g. 75
h. 100
122. The minimum amount of deposit into / withdrawal from currency chest is
Rupees …. Lakhs
e. 1
f. 2
g. 3
h. 5
123. Under the LRS, resident individuals are permitted to freely transfer up to
USD …….. per financial year
e. 1,00,000/-
f. 2,00,000/-
g. 2,50,000/-
h. 3,00,000/-
124. Any resident individual may remit up-to USD …….. in one FY as gift to a
person residing outside India or as donation to an organization outside India
e. 1,00,000/-
f. 2,00,000/-
g. 2,50,000/-
h. 3,00,000/-
125. A NRE account can be opened as a joint account with a resident relative.
c. True
d. False
126. FCNR (B) can be opened as …….
e. Savings Account
f. Fixed Deposit
g. Recurring Deposit
h. All of the above
127. Opening of accounts by individuals from Pakistan requires prior approval

of …..
e. RBI
f. Ministry of Home Affairs
g. Ministry of Finance
h. Any of the above
128. Banks are required to furnish a Flash Report for frauds involving amounts
of Rupees ……. million and above within a week of noticing such frauds.
e. 10
f. 25
g. 50
h. 100
129. Banks are required to constitute a Special Committee of the Board for
monitoring and follow up of cases of frauds (SCBF) involving amounts of Rupees
…… million and above
e. 10
f. 25
g. 50
h. 100
130. Cash shortage more than Rupees …….. is to be treated as fraud
e. 10,000/-
f. 15,000/-
g. 20,000/-
h. 25,000-
131. The threshold for monitoring accounts under Early Warning Signal is
Rupees ……
e. 100 million
f. 250 million
g. 500 million
h. 1000 million
132. In case of frauds, banks must complete staff accountability exercise within
…. Months from the date of classification as a fraud.
e. One
f. Two
g. Three
h. Six
133. Legal audit is required to be carried out for exposures of Rs. …… crore
and above
e. One
f. Five
g. Ten
h. Fifty
134. The Central Fraud Monitoring Cell (CFMC) of RBI is situated at ……..
e. Bangalore
f. Chennai
g. Mumbai
h. Delhi
135. A micro manufacturing enterprise is an enterprise where investment in

plant and machinery does not exceed Rs. ……
e. 5 Lakhs
f. 10 Lakhs
g. 25 lakhs
h. 50 Lakhs
136. A micro service enterprise is an enterprise where the investment in ……

does not exceed Rs. 10 lakhs
e. Plant
f. Equipment
g. Machinery
137. Which one of the following is not a proof of investment in plant and
machinery by an MSME
e. A copy of the invoice of the purchase of plant and machinery

f. Gross block for investment in plant and machinery as shown in the audited
accounts
g. A certificate issued by a Chartered Accountant regarding purchase price of plant
and machinery
h. GST Returns
138. What is the maximum loan under priority sector can be provided to a
service enterprise under MSME?
e. No limit
f. 10 Lakhs
g. 50 Lakhs
h. 100 Lakhs
139. Banks are required to achieve a sub-target of …….% of ANBC, as MSME

loans
e. 5
f. 7
g. 7.5
h. 8.5
140. Banks are mandated not to accept collateral security in cases of loans up
to Rs. …. Lakhs to MSE sector
e. 2
f. 5
g. 10
h. 25
141. As per BCSBI standards, banks are required to dispose MSME loans up
to Rs. 5 Lakhs with in ……… weeks
e. One
f. Two
g. Three
h. Four
142. Banks are required to achieve a sub-target of …….% of ANBC, as
agriculture loans
e. 15
f. 17
g. 18
h. 20
143. ANBC stands for
e. Adjusted Net Banking Credit

f. Arrived Net Banking Credit
g. Annual Net Banking Credit
144. Farmers with landholding up to …… hectares is known as Marginal

Farmers
e. 1
f. 2
g. 3
h. 4
145. Education loan up to Rs. ….. lakh is treated as priority sector loan
e. 5
f. 10
g. 15
h. 20
146. Staff housing loans can be treated as priority sector loans
c. True
d. False
147. Housing loans to individuals up to Rs. ……. Lakhs in metropolitan centres

are treated as priority sector loans
e. 15
f. 25
g. 35
h. 45
148. PSLC stands for
e. Priority Sector Land Certificate

f. Priority Sector Lending Certificate
g. Public Sector Lending Certificate
149. No loan related and adhoc service charges/inspection charges should be

levied on priority sector loans up to Rs……
e. 10,000/-
f. 15,000/-
g. 20,000/-
h. 25,000/-
150. Under this segment funds are transacted for a period between 2 days and
14 days
e. Call Money
f. Notice Money
151. Under ……. market, funds are transacted on an overnight basis
e. Call Money
f. Notice Money
152. ……. is an unsecured money market instrument issued in the form of a

promissory note
e. Certificate of Deposit
f. Commercial Paper
153. To issue Commercial Paper, the tangible net worth of the company should
not be less than Rs….. crore
e. 2
f. 4
g. 6
h. 8
154. What is the minimum maturity period of a commercial paper?
e. 7 days
f. 14 days
g. 21 days
h. 28 days
155. What is the maximum maturity period of a Certificate of Deposit issued by

banks?
e. 1 year
f. 2 years
g. 5 years
156. Banks/FIs can not buy back their own Certificate of Deposits before
maturity.
c. True
d. False
157. NCD stands for
e. Non-convertible Debts
f. Non-currency Debts
g. Non-convertible Debentures
158. What is the minimum face value of an NCD?
e. Rs. 5 lakhs
f. Rs. 10 lakhs
g. Rs. 50 lakhs
159. LEI stands for
e. Lead Entity Identifier

f. Legal Entity Identifier
g. Loan Entity Identifier
160. ECB stands for
e. European Central Bank

f. External Credit Bank
g. Externa Commercial Borrowing
161. What is the minimum average maturity period of ECB raised for
repayment of Rupee loans availed domestically for capital expenditure?
e. 1 year
f. 5 years
g. 7 years
h. 10 years
162. Remittances against normal imports should be completed not later than
…. months from the date of shipment
e. One
f. Two
g. Six
h. Twelve
163. Currency Declaration Form (CDF) is not required if aggregate value of

foreign currency notes (cash portion) alone brought at any one time does not
exceed USD …… or its equivalent.
e. 1000
f. 2000
g. 5000
h. 10000
164. A trade in which the goods acquired do not enter the domestic tariff area
e. Import Trade
f. Merchanting Trade
g. Export Trade
165. BLBC stands for
e. Bank Level Block Committee

f. Block Level Banker‟s Committee
g. Block Level Business Committee
166. SLBC meetings are required to be held at ……….. intervals
e. Fortnightly
f. Monthly
g. Quarterly
h. Half-yearly
167. Banks should report the data on Counterfeit Notes to RBI on a ……basis.
e. Weekly
f. Monthly
g. Quarterly
168. NRLM stands for
e. National Rural Land Mission

f. Natural Rural Livelihoods Mission
g. National Rural Livelihoods Mission
169. Kisan Credit Card (KCC) scheme was introduced in …..
e. 1996
f. 1997
g. 1998
h. 1999
170. A bank can grant loans and advances on the security of its own shares.
c. True
d. False
171. With out the prior approval/knowledge of the …….., a bank should not
grant any loans to the relatives of its Directors.
e. Board
f. RBI
g. DFS
172. Unless sanctioned by the Board of Directors/Management Committee,

banks should not grant loans and advances aggregating Rupees…….. and
above to the directors (of other banks.
e. 5
f. 10
g. 20
h. 25
173. Banks are required to maintain minimum CRR balances up to ….. per cent
of the average daily required reserves for a reporting fortnight on all days of the
fortnight
e. 90
f. 95
g. 100
174. What is the current rate of interest paid by RBI on the CRR balances
maintained by banks?
e. Repo
f. Reverse Repo
g. Zero
175. Diversion of funds is a valid reason to classify a borrower as willful

defaulter
c. True
d. False
176. CFT stands for …..
e. Credit Finance Transfer

f. Combating Financing of Terrorism
g. Counter Financing of Terrorism
177. At least ….. percent of banking outlets opened by a bank during a financial
year should be in unbanked rural centres.
e. 10
f. 15
g. 20
h. 25
178. Closure of a banking outlet in rural centres, require approval of ……….
e. RBI
f. DFS
g. DCC/DLRC
179. There will be zero liability to the customer in case of third party breach
where the deficiency lies neither with the bank nor with the customer but lies
elsewhere in the system, and the customer notifies the bank within ……. working
days of receiving the communication from the bank regarding the unauthorised
electronic transaction.
e. One
f. Three
g. Seven
h. Fourteen
180. How many Small Finance Banks operate in India?
e. 7
f. 10
g. 15
h. 20
181. What is the compensation to be paid to the customer if failed ATM

transaction is not reversed within 5 days?
e. Rs. 10/- per day

f. Rs. 50/- per day
g. Rs. 100/- per day
182. UPI stands for

e. Uninterrupted Payments Interface
f. Unified Payments Interface
g. United Payments Interface
183. IMPS stands for
e. Internet Payment System

f. Immediate Payment System
g. Indian Payment System
184. Banks may provide the facility of withdrawal of cash at any merchant
establishment through PoS devices with a daily limit of Rs…… at Tier I and II
centres.
e. 1000/-
f. 1500/-
g. 2000/-
h. 2500/-
185. RTGS facility is available for customers from …… am

e. 6 am
f. 7 am
g. 8 am
h. 8.30 am
186. Balance enquiry at own bank ATM shall not be treated as part of free
ATM transactions.
c. True
d. False
187. A customer can opt for not to avail nomination facility at the time of
opening account
c. True
d. False
188. If principal or interest is overdue between 1-30 days, the account is

termed as….
e. SMA 0
f. SMA 1
g. SMA 2
189. SMA accounts with exposure of Rs. …. Million and above shall be
reported to CRILIC
e. 10
f. 25
g. 50
h. 100
190. IBC stands for
e. Insolvency and Bankruptcy Code

f. Insolvency and Banking Code
g. Indian Bankruptcy Code
191. Additional provisions to the tune of …..% of total outstanding is to be

made if a viable resolution plan is not implemented within 180 days from the end
of the review period.
e. 10
f. 15
g. 20
h. 25
192. BSBDA Stands for
e. Basic Super Bank Depository Account

f. Basic Savings Bank Deposit Account
g. Bulk Savings Bank Deposit Account
193. Any acquisition of shareholding / voting rights of …. per cent or more of

the paid-up capital of a private sector bank in India shall be subject to obtaining
prior approval from the Reserve Bank of India
e. 5
f. 7
g. 9
h. 10
194. FDI in private sector banks in India is limited up to …. Per cent of the paid
up capital of the bank.
e. 49
f. 74
g. 86
195. At least ….. percent of the paid up share capital of private sector banks in
India shall be held by resident Indians.
e. 24
f. 25
g. 26
h. 74
196. Rate of interest for savings account balance is determined by
e. RBI
f. Respective Banks
g. DFS
197. Bulk deposit means deposits of Rs….. and above
e. One Crore
f. Two Crore
g. Three Crore
h. Five Crore
198. Banks can pay additional interest up to …… percent for deposits

maintained by staff members
e. 0.25
f. 0.50
g. 1
h. 2
199. Banks have the freedom to offer term deposits without premature withdrawal
option.
c. True
d. False
200. EBLR stands for
e. European Bank Lending Rate

f. External Benchmark based Lending Rate

Compliance Quiz

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Compliance Quiz

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Compliance Quiz Questionnaire

1) As per NI Act, if the amount in words and figures differs in a cheque……

a) The cheque has to be returned

4) In case of a deceased depositor where nomination is available, the claim should be

5) MCLR stands for

a) Maximum cost of funds based lending rate

6) A Bill of Exchange is ………….

a) A conditional promise to pay

7) In case of a Promissory Note, there are:

8) Which section of the Negotiable Instruments Act deals with Cheque?

9) Which of these is not a Negotiable Instrument according to Negotiable Instruments

12) The year in which RBI was formed?

14) The year in which RBI was nationalized?

a) RBI Act, 1934

22) Offense of Money Laundering is defined under _____ of Prevention of Money

23) PPI stands for…………

24) When was the State Bank of India nationalised?

27) The first Indian bank to open a branch in foreign soil?

a) State Bank of India

a) SBI & ICICI Bank

31) Which was the first bank to introduce mutual fund?

33) Which was the first bank to introduce Internet banking?

34) Which was the first bank to introduce ATM in India?

35) Which country started first plastic notes?

36) When was general insurance business nationalised?

37) Which was the first Indian bank to get ISO?

a. Cash Reverse Ratio

40) What is the full form of NIM?

a. Net Interest Margin

41) "Basel Committee on Banking Supervision" is also known as _______.

a. Bank for International Settlements Committee

44) What is the full form of SWIFT?

a. Safe Window for Interbank Financial Transactions

a. New Demand & Tenure Liabilities

a. Call Verification Value

47) 'Subprime lending' is a term applied to the loans made to _________.

a. Those borrowers who do not have a good credit history

48) What is the full form of IRR?

a. Internal Rate of Return

49) FATCA stands for

a. Foreign Account Trade Company Act

a. Companies Act, 1956

52) Banks are required to maintain SLR under which act?

a. Section 24 of the Banking Regulation Act

54) Whose signature does an Indian currency note bear?

55) The Definition of „Banking‟ is given in _______

a. Negotiable Instrument Act, 1881

58) What happens if a crossed cheque is presented for payment?

a. It can be paid only through a banker

59) Which organization provides guarantee to the exporters?

60) EXIM bank was established in the year?

61) Which bank is Apex body in India for Agricultural Development?

62) Who regulates the Mutual Funds in India?

63) What is the full form of CERSAI?

a. Combined Registry of Securitization Asset Reconstruction and Security Interest

64) A Credit Bureau is governed by which of the following act?

a. Securities and Exchange Board of India Act, 1992

65) Which of the following is India‟s first Credit Information Company?

66) Which of the following is Asia‟s first stock exchange?

68) Which of the following scheme was formulated by RBI?

a. Banking Ombudsman Scheme

a. Flow of Foreign Direct Investment

71) Which of the following is the correct definition of Hot Money?

72) Where is the Bank of International Settlement headquartered?