A K GUPTA's (IMPACT) - Canara Bank Officers Association

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A K GUPTA's (IMPACT)· __N S TOOR'sBankers Training Institute - Institute Of Banking Career & Studies

Office: 75, Block BG-I, Paschim Vihar, New Delhi 110063Ph. 01165476949,01125274157,09350476949Website: www.bankerstraininginstitute.comEmail: [email protected]

Office: SCO 34, Sector 330, Chandigarh 160020Ph: 01722665623,5075449,09317812720Website: www.bankingindiaupdate.comEmail: [email protected]

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RECALLED· QUESTIONS

DELHI: 01165476949,011 25274157,09350476949

CHD: 0172 2665 623, 09317812720

Website: www.bankerstraininginstitute.com

Email: [email protected]

~ Website: www.bankingindiaupdate.com

Email: [email protected]

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KNOW YOUR FACULTYA. K. GUPTA

Shri A.K. Gupta is a post graduate in commerce, LL.B,CAIIB, PGDip in PersonnelManagementandIR, PGDip in Marketing and Management,PGDiploma in Training and Development,Certificate inIndustrial Finance; Ex- Chief Manager,Punjab National Bank with an experienceof more than 28years as a banker; Experience of more than 12 years in training in the bank's training college(Principal for 5 years); has helped thousandsof bankers up to scale V in their bankingcareer. Hehas been examiner with Indian Institute of Banking& Finance(lIBF, Mumbai) for about 5 years. Hehas been teaching FinancialManagementand ManagementAccounting and CommercialLaw in theclasses conducted by the Indian Institute of Banking & Finance. After having left bank as chiefmanager, at the age of 48 years, remained associated with number of leading managementinstitutions at MBAlevel including Mastersof Finance,University of Delhi, International ManagementInstitute etc teaching subjects like Managementof Banks, FinancialServices,FinancialManagement,Merchant Banking, Banking Law & Practice;He conducted programmes in the areaof Asset LiabilityManagement and Credit risk management for top management executives in the rank of ChiefGeneralManager/GeneralManager/DGM/AGMsof SIOBI, Central Bank of India, DenaBank, Punjab& Sind Bank; He has been visiting faculty to training collegesof several banks like PNB,NIBSCOM(joint college of Oriental Bank of Commerce,PSBand J&K Bank), CanaraBank,UCOBank, Bank ofIndia etc; He 'was lncharqe of EconomicIntelligence Cell in PNBfor 5 years and the job involvedanalysisof monetary & credit policiesof RBI, analysis of Govt. policiesand Budget;tracking Bankingand Economyrelated developments; Hewas Senior Manager inchargeof AssetLiabilityManagementCell for 2 years; Besidesattending 'severalprogrammes at NIBMand BTCCRBI),he was a student ofUniversity of Manchester for 3 months for an advanced programme in Development Banking;Number of articles and case studies authored by him have appeared in Economiclimes, FinancialExpress, PNBMonthly Review, Vikalpa (Journal of lIM Ahmedabad), The Banker, Indian BankingToday and Tomorrow, Indian Management (Journal of AlMA). He presented papers at BankEconomistsConferences.

He can be contacted at : Tel: 093 50 476949, 011 65 476949, 011 25274157,www.bankerstraininginstitute.com;

email: [email protected][email protected]

N. S. TOORSh. N S Toor : A post graduate in Economicsand Commerceand a certified associateof IndianInstitute of BankersBombay; hasworked for Punjab National Bank for more than 25 years including3 years as Chief(Credit); He handledthe industrial credit portfolio in the bank at exceptionally largebranches, middle rung administrative office and corporate office for more than 20 years. He hasbeen a senior faculty member at the staff training college of PNB.He has contributedmore than 80researchpapers and articles on a variety of banking subjects to reputed bankingand financial papersand periodicals. He has authored a number of books for bankers such as Handbook of BankingInformation/ Credit Risk ManagemenCManagement of NPA~ BalanceSheetAnalysis/Model Papersfor Bank Promotions/ Rationals and BankingProblems.He is also the Editor in-Chiefof the monthlyJournal BANKING EVENTS UPDATEand the Chief Mentor of website www.bankingindiaupdate.com.He has been in bank training for the last more than 15 years.

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Hecan be contacted at: Tel: 01722665 623, 09317812720,www.bankingindiaupdate.com; email: [email protected]

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A K GUPTA'S BANKERSTRAI~ING INSTIruTE (C 707, Sukhsagar Apratment, Plot No 12, Sector 9, Dwarka, New Delhi _ 110075; Ph 011 65476949, 09350476949)N S TOOR S INSTITUTE OF BANKING CAREER& STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)

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IMPORTANTRECALLEDQUESTIONSGuaranteeis defined in: Indian Contract ActProvisionsrelating to Nominationare given in : Banking Regulation Act (Sec 45 ZA to 45 ZF)What is the target of lendingto PrioritySector for DomesticCommercialBanksother than RRB:40% of Adjusted NetBanking Credit or Off BalanceSheet Exposure whichever is higher.Chargedcreated by Bailmentof goodsto secure payment of a debt is called: PledgeIf limit is 3 lacs,margin is 25%what should be stock to avail full limit?: Rs4 lacAs per section 26 of the NegotiableInstruments Act, a Minor can draw, endorse,accepta negotiable instrument but hecan not: bind himselfIf on a letter of credit it is not mentionedwhether it is revocableor irrevocable,then as UCPDC600, it will be treated as :Irrevocable LCWhat was First step towards computerisationin Banking: Setting up ALPM(Advance Ledger Posting Machine)A has granted Irrevocable Power of Attorney in favour of B for one year. After 3 monhts, A revokes the Power ofAttorney. A cheque signed by B is presented for payment. What will you do? The cheque will not be paid becausePOAcan be withdrawn before maturity and once it is revoked, no cheque signed by agent can be debited toaccount of PrincipalIn caseof SGSYscheme,the numberof members of the Self HelpGroup should be normally and in difficultareas : 10 to 20; 5 to 20.For acquiring securities charged to the bank under SARFAESI,notice of __ days is required to be given to theborrower and for saleof securitiesso acquired notice of __ days is required.: 60 days, 30 daysServiceTax is not applicableon : Interest received on advancesNet workinqcapitel is Rs80,000; Current Ratio is 3:1; What will be the current assets?:Rs 120,000What doesthe letter "C" representin the rating model CAMELS:Capital AdequacyWhat is the Doctrine of Ultra Vires in the context of a limited company?:Any act by the directors beyond the objectof the company is considered ultra vires the company and company is not bound by such act.What is the target for foreign.banks..with less than 20 branches in India for financing Priority sector: 320/0 of theadjusted net bank credit or credit equivalent of Off balance sheet exposure whichever is higher.CorporateDebt Restructuringis applicablewhen a limited company has raisedfinancefrom more than one bank and theoutstanding is: Rs 10 crore and above.The substandard accounts which have been subjected to restructuring, whether in respect of princlpal instalment orinterest amount, and hassatisfactoryperformance, would be eligible to be upgradedto the standard category after: oneyear after the date when first payment of interest or of principal, whichever is earlier, falls due, subject tosatisfactory performance during the period.What is a Breakeven point: The level of sales at which a firm does not earn any profit and does not incur anyloss.Relaxationin KYCnorms is permitted if the depositor undertakes that the balanceoutstanding in his account will not bemore than and credits in a financial year will not exceed . Rs 50,000; Rs 100,000A minor who was admitted to the benefits of partnership has becomemajor. Within how much period, he has to decide toremain partner in the firm or not?: within 6 months of attaining majority or 6 months of knowing that he is thepartner in the firm whichever is later.Working capital limit to SmallManufacturingEnterprisesup to Rs 5 crore is workedout as per which method?: Turnovermethod suggested by NayakCommittee.Whichof the following is a current liability?: Bills payableFor being eligible to be classifiedas small (service) enterprise, the original investment in equipment should not exceed:Rs 2 crore.If on a cheque words "Account Payee" is written between two parallel lines or with the name of a bank, then: thecheque can not be endorsed. •Which type of crossing is requiredto be done if the drawer wants that in caseof endorsement, the title of transferee ofthe chequeshould not be better than the title of the transferor: Not Negotiable CrossingWhich of the following is indirect rate for quoting exchange rate in foreign exchange?: Rs 100= US $ 2.60 (Homecurrency is fixed and foreign currency varies) . .L-In caseof agricultural advances,no dues certificate is not required for loan up to: \JP""'~ Pm"! AmoLl.}A.1.In the case of dishonour of a chequedue to insufficient funds, for enforcing rights under section 138 of the NegotiableInstruments Act 1881, the holder should send a notice to the drawer within: 30 days from the date of receipt ofnotice regarding dishonour of the instrument.The limitation period for filing casein case of dishonour of chequedue to insufficient funds is: 1 month from the dateof cause of action.A director of a bank wants to raise loan of Rs 10 lakh from his bank against Life InsurancePolicywith surrender value ofmore than Rs15 lakh.What will be done?: Bank can sanction. .' .The police seeks information regardingconduct of an accou~t bei~g maintai~ed.in your branch In con.nectlonWith someinvestigation. Canthe bankpasson the information? : Yes, If the information ISasked by an offiCial of the rank ofincharge of Police Station or above and in writing.

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A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)

33. What should the minimum holdingof Governmentin public sector banks?: 51%34. Objectivesfor which a companyhasbeenformed are given in: Memorandum of Association35. In which of the following cases,the documentis required to be attested by two witnesses?:(a) Pledge (b) Hypothecation

(c) Mortgage (d) Lien . . .36. A document was executed by three partners in different dates. When shall the limitation period start?: The limitation

period will start from the last date i.e. when the document was executed by the last partner.37. Loan Delivery Systemsuggestedby RashidJilani Committee is applicableon borrowerswith working capital limits of: Rs

10 crore and aboveInvestment FluctuationReserveismaintainedon securitiesclassifiedas: "Held for Trading" and "Available for Sale"Fund Flowstatement is a statementof: Sources and Application of Funds over a periodRevaluationReserveis created as a resultof: appreciation in the market value of land & building

41. What is Deferred Guarantee?: It is a type of financial guarantee which is issued when some machinery ispurchased on instalment basis i.e. the payment is to be made in instalments over a period of time.Full form of BCBSis: Basel Committee on Banking Supervision.ServiceTax is to be deducted on: Rent of real estate propertiesDSBreturn is related to: Off site surveillanceFraudulent Draft presentedand paid,who is to lodge complaint: Paying bankerLoan to a company engaged in construction of projects, which method of financing is to be used: Cash Budgetmethod.

47. What is the meaningof Group in ExposureNorms:Commonality of management48. A Small ManufacturingEnterpriseunit is consideredas Sick Industrial Unit: when account remains sub standard for

more than six months or there is erosion in the net worth due to accumulated cash losses to the extent of500/0 or more of its net worth 'during the previous accounting year and the unit has been in commercialproduction for at least two years

49. What is the purposeof adopting IRAC(Income Recognitionand AssetClassiflcatlon) norms in India?: to move towardsgreater consistency and transparency in the published accounts.What is ChequeTruncation?: converting physical cheque-into electronic form through scanning.POSCOof South Koreais relatedto which industry: Steel IndustryExpandthe abbreviationsGAAS:Generally Accepted Auditing StandardsG-8 is the namegiven to : Wealthy NationsNathuLaPassis located in :SikkimCity Alang is famous for: Ship Breaking IndustryIslamic Banking is basedon the principlesof: Conservative Banking (on no interest basis)Walmart is related to : Retail TradingLakshyais a : Unmanned AircraftMinimumMaturity Periodfor Certificateof Deposit is : 7 daysCleanAudit Reportmeans: An audit report without any qualificationsDirect Impact of increasein CRRis : Controlling LiquidityThe procedureusedfor ascertainingCustomersCredit worth is called: Credit RatingGreen field project is related to : setting up new projectsWhat is RealRateof Interest?: Prevailing interest rate minus inflation rateHot Listingof ATMcard is donewhen: The card is lostThe main distinction between Hypothecationand Pledgeis on account of: PossessionWhat is the periodicity of RReturnsent to RBI: FortnightlyWhy KYCguidelines have been issuedby RBI under section 35 A of the Banking RegulationAct: To prevent MoneyLaunderingBankscan not issueDemandDraft payableto Beareras per provisionsof : Sectioll 31 of the RBI ActAt least __ portion of DRI advancesshould be made by Ruraland SemiUrban branches:2/3 rdAdvance to a dealer in irrigation equipment will be treated as indirect agricultural advanceprovided the amount ofadvancedoes not exceed : Rs 500 lakhGracePeriodis allowed in the caseof : Usance Bills and Usance Promissory NotesIn Letter Of Credit jmporter is called:Opener of Letter of Credit _Ad~anceqranted for setting up Warehouseor Cold Storage anywhere in India will be consideredas indirect advance toagriculture provided the amount of advancedoes not exceed : No LimitApiculture means: Bee Keeping -In caseof agricul~ur~1advanceno ~argin or collateral security should be taken up to: Rs 100000/-If a :mall enterprise In manufacturinqhasa good track record, collateral security can be waivedup to: 25.00 lacsServiceAreaApproac~has beenstill continuedfor: Government Sponsored SchemeCa~hBudgetmethod IS used for sanctioningworking capital limits to : Seasonal IndustriesIndian Banksa~er~uired to maintainminimumCapitalAdequacyRatioof : 9%In the caseof individuals and HUFftax will be deducted at source if the interest on term deposit in a financial year is .more than Rs 10,000 .

82. If payment of Rs20000/- is made in cash in caseof FORwhat is the penalty: equal to the amount paid

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A KGUPTA'SB~NKERSTRAINING INSTITUTE «75, Block BG- I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)N STOORS INSTITUTEOFBANKING CAREER&STUDIES(SCO34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)

83. If Powerof Attorneyis executedoutside India it should be stampedwithin:90 days of its first arrival in India84. For its implementation,the complainant shouldaccept the award given by Ombudsman within: 30 days of the receipt

of the copy of the award.85. When proceedsof chequeare given before clearanceof the chequethe bankerwill be called: Holder for Value86. What do we mean by Surrender Value of Life Insurance Policy?:Minimum amount payable by the insurance

company in case of foreclosure of the policy before maturity.Bank'schargeoverUC Policy is created by: AssignmentIn the caseof Wrongfuldishonour of cheque,to whom the bank is liable?:DrawerGuaranteeissuedbya bankwhich is still outstanding is shown in the BalanceSheet as: Contingent Liability.Current Liabilitiesarethose liabilities which are to be paid: within one YearIf date on a chequeis prior to the date of its presentation, it is called:Ante Dated ChequeIn SeniorCitizenSavingSchemeaccount, who can be joint accountholder?:SpouseWhat is minor'sliabilityin HUFAccount: Minor is not liableWhen doesthe rightof nominee starts in respectof a deposit account?:After death of all depositorsWhy loan againstPartlyPaidShares are not preferred by banks?:Because partly paid shares represent contingentliability. In case company makes demand and the borrower does not pay the amount then the bank willhave to pay the amount otherwise share may be forfeited. Moreover it is prohibited by RBI

96. What is the purposeof preparing R Returnsthat are submitted to RBI fortnightly as on 15th and last day of the month?:To report purchase and sale of foreign exchange to compute Balance of Payments position.

97. For injecting moneyin the market which type of transaction is undertaken?:(a) Repo (b) ReverseRepo98. Preshipmentcredit is allowed on the basisof: f.o.b. value of goods99. Packingcredit loanis adjusted out of the proceedsof: Export bills, export incentives and EEFCaccount100. Return on Investmentis calculated to ascertain__ of the unit.: Profitability101. For ascertainingthat a firm will be able to generate suffkfent profit to repay instalments of term loan, which ratio is

computed?:Debt Service Coverage RatioTotal IndebtednessRatiois representedby: Total outside liabilities divided by Tangible Net WorthIn the BalanceSheetof a bank, Contingent Liabilitiesare shown as: footnote to the Balance Sheet.Garnisheeorder is not applicable to: Unutilised portion of the cash credit limitWhich of the following is not added in the demand and time liabilities for calculation of SLR?:Capital and reserves,inter bank deposits for maturity up to 14 days, borrowings from RBI and refinance from NABARD, SIDBI.

106. Financefor constructionof road and port is classlfledas: Infrastructure Finance.107. Banksare requiredto declare their financial results quarterly as per provisionsof : SEBI108. RBI controlsmoneysupplythrough: change in CRR109. The full form of FRBMis: Fiscal Responsibility and Budget Management110. Loanwas raisedfrom the bank against NSCby Mr. X and noting to this effect was recorded in the issuing PostOffice. X

dies. The nomineeapproachespost office for payment of NSC.Whowill have priority i.e. bank or nominee?: Bank willhave prior claim against NSC.

111. Hypothecationcanbe converted to pledgeby: taking possession with the consent of the borrower.112. An account was restructuredon 30th June 2011 and first instalmentwas due on 31.12.11. The instalment was deposited

on 29.12.11. The accountwill be consideredas standard if instalmentsare paid regularly for 12 months with effect from:31.12.12.

113. SubsidyunderAgri dinic Agribusinessis % for general and % for SC/ST: (36% and 44%)114. Small (service)enterprisesare those units where original investment in equipment is: upto 2 crore115. UnderCGFTschemefor MSE, for loansup to Rs 50 lac, 80% coverageis not available for: SC/ST116. If a bank has oversold position in foreign exchange, it will incur loss: when the value of foreign currency

appreciates.117. RadhakrishananCommitteeis related to: Agricultural Indebtedness118. The committeethat recommendedconcurrent audit was headedby: Shri Ghosh119. RakeshMohancommitteeis related to: Committee on Financial Sector Assessment (CFSA)120. Restructured accountcan be upgraded to standard if the operation in the account is satisfactory for a period of: 12

months from the date when the first instalment was due.121. In caseof failureof a customer to meet its commitment in settling his dues in time it will come under which type of risk?

Credit Risk122. Which of the following approaches is not relevant for measurementof capital for operational risk?: Internal Rating

Based approach (It is relevant for credit risk) . .123. Rateof Interest on adhocpacking credit limit is: same rate of interest as for normal packmg credit loan.124. What chargeto be createdfor demat shareswith bank as security: Lien • • 0

125. TDS not depositedin time. What is the interest payable?: Bank to pay the amount With mterest @ 1.5 Vo permonth simple. . . ..

126. If the last date of shipment under LCis mentioned as on or about 30.06.2012 - shipment will go Within: 5 days beforeand 5 days after 30.6.12

127. Loan given to a directorcan be waived: after permission of RBI.128. Noting in Hindito be made in area "C": 30%

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A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)

129. For the purposeof MedicalTreatment, how much amountcan be remitted freelyon declaration ba.s!s:~S $ 100,000.130. As per a recent judgementof the SupremeCourt, while initiating action underSARFAESI,the P?~I~lonIn caseof SUItfiled

in DRTwould be: that no permissionis required from DRTand action underSARFAESIcan be Initiated as both the casescan run together.

131. Underthe Ombudsmenscheme,the Bank has to reply to the objection of the complainantwithin: one month132. What is the benefit of RTGS:Safe, speedy & client can usethe funds sameday.133. PillarIII of Basel-It is relatedto: Market Discipline134. Uponfinding the counterfeitcurrency note on the counter, the action of the bankshould be: Impound the currency note

but credit full amount to customer.Receipt not to be issuedto depositor.135. Banksare required to maintain a margin of __ for issuing Guarantee favouring stock exchange on behalf of share

brokersof which cashmarginshould be: 50%; 25%.136. For bankswhich do not haveoverseasbraches, BaselII norms have to be implementedwith effect from: 31.3.09137. Locker should be broken open if it is not operated for _ year in case medium risk and _ year in case of high risk

customers: (3,1).138. If a Sub-Standardsk: rephased,when this will be upgraded: after 12 months of first instalment due and account runs

satisfactorily for 12months.139. NREGPscheme (NationalRuralEmploymentGuaranteeProgramme)has beenextendedto entire country w.eJ. : 01.4.08140. What is the stake of CentralGovt., SoonsoringBankand StateGovt. in RRBcapitalstructure: 50:35:15.141. Debt Equity Ratio indicates:Longterm solvencyor capitalstructure of the firm.142. HowDSCRis calculated?:(Profit after tax + Depreciation+ Interest on Term Loan)divided by (Annual instalment of term

loan+ interest on term loan)143. If Debtorsvelocity ratio increases,it means debt collectionperiod has increasedor saleshave decreased.144. Perpetual bonds and perpetualnon cumulative preferenceshares as part of tier I capital can be up to __ % of tier I

capital: 40%145. The liability of Introducer in caseof fraud by the customer: No legal liability146. Day light position for dealersin forex is: higher than the overnight position147. What refers to P-Notes:PartiCipatoryNotes used by Foreign Institutional investors for investment by overseas investors

who are not registeredwith SEBI.148. Current balance is Rs.60001-. A cheque of Rs.18,0001- is presented. Branchpassedthe cheque by allowing TOO. After

few days, fixed deposit of the same party matured and TOO was cleared by crediting the proceeds to CA. Customerdisputes the transaction. Whether bank is having right in doing so? : Normally no without specific request of theparty. However, if bank has a specific clause in the account opening form to allow overdraft in such casesand customer has consented to such clause, then temporary overdraft can be allowed and recover thesame from the account holder even if there is no specific request from the party.

149. As per RBI guidelines,concessionalinterest on PreShipment Credit in rupeessanctioned up to 30th June 2010, can beextendedupto _ days: Ans: 270 days

150. What is the special feature of Basicbanking Account?Account can be opened with nil or very small amount andthere are no requirement of minimum balance.

151. Whichequipment is requiredto capture the signatureand photograph and createthe same in the programme: Scanner152. Provisionson StandardAssetsare shown under which head in the balancesheet of the Bank?: Other Liabilities and

Provisions on Liabilities side.153. A post dated cheque is passedin the account of a customer. But another chequewhich was in order was dishonoured

due to insuffiCientfunds. What is the liability of the Banker?: Bank is liable to the drawer for paying post datedcheque as bank is not justified in paying post dated cheque. The bank will be liable to drawer for damageson account of wrongful dishonour of cheque.

154. What is the limit for classifyingthe loan sanctioned to Drip and Sprinker irrigation dealer, for including under Indirectfinance to Agriculture?:Rs500 lakhs

155. Balanceoutstanding in a CClimit is Rs.9 lakh. Valueof stock is Rs.5 lakhs. It is in doubtful for more than two years ason 31 March 2012. What is the amount of provision to be made on 31-03-2013?:Rs.9 lakhs (100% of liability asaccount is doubtful for more than 3 years)

156. In an endeavour to promoteexport credit, the target for export credit for Indian Banks has been fixed at and forforeign banks has beenfixedat: None as there is no target for export credit for any type of banks.

157. Which type of preferential shares are treated as part of Tier I capital of the Bank?: Perpetual Non CumulativePreference Shares.

158. As per RBI gUidelines,all banksare required classifybusinessin various businesssegmentswith effect from 31-03-2008.The.segments are: (a) Tr~asury (b) Corporate I Wholesale Banking, (c) Retail Banking, (d) Other BankingBUSiness. The geographical segments are 'domestic' and 'international'.

159. Gen~ralprovision on standardassets except specified categories is: 0.40% of the balance outstanding on globalbaSIS.

160. Customerof your bankasksfor cash payment of crossedDO.What would you do?Generally payment only through bank~ccount. However, bankcan pay after duly satisfying the genuinenessof the draft and payee but bank will continue to beliable to true owner if recipientis not true owner. .

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A K GUPTA'S B~NKERS TRAINING INSTITUTE ((75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)N S TOOR S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)

161. TDScollectedto be deposited with the Income Tax Deptt within: 7th day of succeeding month during which it iscollected. .

162. For classificationof assets in consortium accounts, which of the following is to be considered?: In consortiumaccounts, each bank will classify the account as per its record of recovery.Who is bound to file particulars of charge with the Registrarof Companies under MCA21, when a company createschargeof somebodyon its movableor immovableproperty exceptby way of pledge?:officials of the company.Credit of Rs.20,OOO/-was taken as Rs.2000/- and as a result a cheque was returned in the account for want of funds.Bankhasalreadysent statement of accountto the depositorwho has acknowledged receipt of the statement of account.Whetherbank is liable?:Yes. Liable to drawer of cheque.LegalExpensesincurred by Bank in respectof suit filed accountto be debited to : P& L accountA cheque is presented for payment in which the amount in words and figures is different. Bank should pay whichamount?:amount written in words will be paid.What is the percentage in RegionA to bring training materialsbilingually?:100%Advanceto a companyagainst Trust receipt where documentof title goods transferred to bank and goods to be releasedagainstpaymentby the company.Whethera charge is to be registeredwith the Registrarof Companies under MCA21?:Not RequiredWhethera PrivateUmited companycan be a partner with PublicUmited company to form a Partnership?YesLiabilityof the Bankin case of Guaranteesissuedon behalfof its customers is: Contingent LiabilityIn the context of Nomination, which is correct statement?:Signatures of nominee not required on nominationform. Nominee's name should be mentioned on FDR if agreed by the customer.A bearerchequeof Rs.7,OOO/-was presented. The cashierinformedthat the cheque can not be passedas the balanceisless by Rs.700/-. The tenderer credited the amount of shortfall and the cheque was paid. Customer disputed thetransaction.Whether bank is liable?:Yes. For disclosing balance to third party, bank is liable to account holder.Whendoes liquidity risk arises?: Liquidity risk arises when maturing liabilities 'are more than maturing assets.EducationLoanup to RS for studies in India and up to Rs.__ lakhs for studies for abroad are treated as PrioritySectoradvances: Rs.I0 lakh, 20 lakhsIn caseof PMEGP;.maximum project cost under ManufacturingSector is __ and ServiceSector is __ : Rs 25 lakhsand Rs 10 lakhsWhat are the chargesfor NEFTof Rs.3lakhs: Rs.25 plus service taxUndermultiple banking system, exchangeof information betweenthe banks is to be done for the limits of __ croresand aboveand periodicity is __ : Rs.5 crores and QuarterlyUnderSARFAESIAct, in the caseof Consortiumlending, _ % of creditors to agree to bring the action under SARFAESI:60% of creditors by value.What is the ServiceChargefor a remittanceof Rs.20,OOO/-to Nepalif payee not customer of NSBL:Rs 100NormallySGSYgroup shall contain memberswho are belowpoverty line only. In caseof non availability of BPLmembersto the fullest extent, the number of personsabove poverty line can be __ and in exceptionalcases up to __ :200/0&30%.What are the charges for balance enquiry through other bank'sATMs: NIL up to 5 transactions at other than 6metro stationsReceivablesin terms of export bill negotiatedunder LCshall be treated as: contingent liability for exporterProfit beforetax Rs150; Tax Rs40; DepreciationRs30; Interest on Term Loan Rs 30; Annual instalment of term loan Rs70; calculateDebt ServiceCoverage ratio: 1.7 ( Net Profit after Tax + Depreciation + Interest on Term Loan)/(Instalment of Term Loan + Interest on Term Loan).TDSat the rate of 10% is to be deductedat source in caseof individualsand HUF, if the rent payable in a financial yearexceeds : Rs.l,80,000For purposeof classification of Wilful Defaulters for reporting to RBI, the outstanding should be: Rs.25 lakhs andabove__ % outstanding under General Credit Card Scheme is to be treated as __ : 100 %, Other Priority SectorAdvanceAs per KYCguidelines,the periodicity of obtention of photographand latest address proof for Low RiskCustomersis __MediumRisk__ years and High RiskCustomers is __ : 10 years, 8 years 2 years.The Meaningof DebtorVelocity Ratio.is: Cycle of Debt Collection Period . ..Whenan order passedby BankingOmbudsmanis acceptedby the complainant, the sameshould be compliedwithm: 1month from the date of receipt of acceptance from the complainant.The family incomecriteria for urban areasunder DR! schemeis Rs. : Max Rs 24,000/- p.~. .Composite fees for CGSMSEin caseof advancemore than Rs5 lakh in North Eas_ta.ndWo~en IS__ an~ for microcredit upto Rs.S lakhs in North East&Women is_: 0.85% and 0.75% p.a. of limlt ~nctloned respectively,In project finance, Debt Equity Ratio requirement for other ~an In~ra~ructure. fina~ce IS:2:1 . '.Penaltyfor delay is __ per day if information is not furnishedwlthin prescnbed time under RIght to Information Act.Rs.250. . bl rty tIn caseof NROaccounts, Authorised Dealerscan allow repatriation of the sale proceedsof unmova e prope up 0

__ in a financialyear: US$ 1million.

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164.

165.166.

167.168.

169.170.171.

172.

173.174.

175.

176.177.

178.

179.180.

181.

182.183.

184.

185.

186.

187.

188.189.

190.191.

192.193.

194.

5

A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)

195. A bank who has purchasedNPA from other bank can resell the same, after holding the same in its books formonths from the date of purchase: 12 months

196. Under BASELII, for calculatingcapital for Operational Risk which method is to be applied for the time being: BasicIndicator Approach .

197. As per RBI guidelines,Loans to Agro and food processing Units are eligible to be classified under Small Enterprisesprovidedthe original investmentin plant and machinery does not exceed:Rs.5 crores

198. A unit in Servicesectoris treated as Small Enterprise if original investmentin equipment is up to: Rs. 2 crore199. For being part of Tier II capital, RupeeDenominated subordinateddebtsshouldhaveminimum maturity period of __ ._

and maximum maturity period of : Minimum maturity:5 years Maximum: Perpetual(no maturityprescribed

200. To be classifiedas PrioritySector,the limits on advancefor repairs to dwellingunit located in Rural is __ and for unitslocated in urbanareasis Rs. : Rs.2 lakh rural, Rs.5 lakh urban

201. BaselII consists__ Pillarsand number 2 pillar is : 3 pillars, Supervisory Review is Pillar no.2202. Whichmethod is bestsuitedfor calculatingworking capital requirementsof Seasonal Industries: Cash Budget Method203. BenchmarkCurrentRatiounder turn over method is: 1.25204. For implementationof restructuring proposal under CDRmechanism,consentof _ % lenders in value and __ % in

Number is required: 75% by value, 600/0 by number.205. Decisionon debt Restructuringof SME should be taken within a periodof __ days: 60 days.206. RBI has restricted sanctioningof/Continuanceof existing loans grantedagainstFCNR(B)deposits to: No limit207. Under UCPOC600, what is the tolerance limit of variation in Quantity, if not specificallymentioned in LC: +/ - 5%208. What do you meanby Firewall?:Software programme which denies access to the hacker.209. In respect of a project report, the feasibility which is given least importanceby the preparers of the report, but very

important for a cankeris : a) Commercial b) Technical c) economicd) flnandal Ans: C210. If a LCcontainsa clause"about" regarding the amount and quantity of goods,how much tolerance is permitted?: 100/0211. A crossed DD was paid by cash. What risk is there for the Bank: Bank will be liable to true owner of the DO if

payment made to a person other than true owner (Section 129 of N I Act). . . .'212. What are the benefitsof coveringadvancesunder CG5MSE?:Bank can finance viable projects without insisting for

collateral security.213. A cheque is written in Englishand Regional Language.Whether it can be paid?: Yes. A cheque written in different

language can be paid if otherwise in order.214. What is the type of liabilityfor the bank Oil account of issueof BankGuarantee?:Contingent Liability215. For financing Tea, Sugar industry, working capital finance should be consideredunder which method?: Cash Budget

Method.216. If there is delay in reporting to RBI by currency chest or there is double/excessreimbursement, what is the rate of

interest chargedby RBI?:Bank rate +2%.217. Which of the following is part of Tier II Capital? (a) Statutory Reserves (b) Other disclosedreserves (c) Capital reserves

from saleof assets(d) RevaluationReserve:Ans is 0 l.e, Revaluation Reserve.218. In caseof 5ARFAESIAct, before preferring appeal to DRAT,how muchamount is to be deposited by the borrower with

DRAT?:50% of the daim amount which can be reduced to 25% by the DRAT. For making application toDRT, no amount is to be deposited.

219. Within how many days, Export documents and Bill of Lading to be submitted to Authorised Dealer for realization?: 21days of shipment.

220. In a Doubtful account,which is doubtful for more than 3 years, how muchprovisionshould bemade if the account is fullysecuredby tangible security: 100% of the amount outstanding.

221. A unit other than 551will be treated as weak unit if: (a). any of its borrowal accounts (principal or interest) hasremained overdue for a period exceeding one year; or (b) there is erosion in the net worth due toaccumulated losses to the extent of 500/0 of its net worth during the previous financial year

222. To arrive at group concern,factors to be looked into are: commonality of management + effective control.223. ProviSionfor unsecuredadvanceunder substandardcategory: 250/0 for other than infrastructure.224. Legal risk is part of: operational risk.225. Tier I should be at least 6% of Riskweighted assets and should be achievedbefore __ by all scheduledcommercial

banks: 31.3.2010. .226. In caseof loansunderSGSY,no collateral security is required for loansup to: Rs 100,000 to individuals and up to Rs

10 lac to Self Help Group. .227. The limitations of finandal statementsare: only quantitative not qualitative. .228. While financing for TL, Bankshould look for the ability of the firm to generate the income to service the debt229. RTGS- timings for customers- Monday to Friday 9.00 to 4.30 Saturday 9 .00 to 14.00230. Hypothecationdescribedunder SARFEASI Act.231. U.nspent~oreignexchangein Fe can be retained up to 2000 US$ and no limit for foreign coins.232. Bill of lading to be submittedwithin 21 days: if date of shipment is 28thSep08 documents to be tendered on or before

19th Oct 08. '233. Tier 2 - general?~OviSioning& loss reservesonly up to 1.25% of total riskweightedassets.234. UpperTier 2 -rmmmummaturity is 15 years for Debt capital

6

A K GUPTA'S B~NKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)N S TOOR S INSTITUTE OF BANKING CAREER & STUDIES {SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720}

235. Off Balancesheet I On Balancesheet exposure- if altered the risk will be Credit Risk.236. Riskweight for claim on Bankswhich complies to MinCRARrequirement: Scheduled Banks 20%237. CGMSE- upto 5 lakhscover in North East: 0.75% p.a, of limit sanctioned.238. CDR2 - (classifiedas Doubtful) Mechanismcan be permittedonly - if a minimum 75% of creditors by value and

60% creditors by number should satisfy themselves of the viability of study.239. 100% of GCCaccounts and up to 500001- overdraft permitted in no frill accounts will be treated as: Other Priority

Sector.240. Provisionon Doubtful for> 3 years = Deficit + 100% of security (i.e) 100% of liability241. KYlCloan irrespectiveof location /arnount/ investment in plant & machinery is treated as SME- Micro Manufacturing

Sector with in Priority Sector.242. Advancesup to 50 lacs against pledge I Hypothecationof Agricultural produce for a period not exceeding 12 months _

treated as priority sector.243. Whocannot becomea partner in a firm as per supremecourt judgment - HUF244. Introducers liability I responsibility in case of an account holderdefrauding Bank is: To assist the Bank in locating

the alc holder - does not have legal liability245. Nomination- Minor can be a nominee.246. NR!customerseeking loan against FCNR/NREDeposits30 lacs: It can be given because there is no limit on loan

against NRI Deposits.247. Inoperativeaccounts: 2 Years & above not operated.248. UCPDC- for examination of documents- 5 banking days (Act 14 b)249. OSCCommissionon cheque for Rs. 80001- : Rs.50/-250. GuarantorsLiability: Recallthe etc and cause demandagainst the borrower and guarantor. Balance in guarantor's SB

alc cannotbe appropriated directly.251. Capitalaccount convertibility meansthe freedom to convert to financial assets in to foreign flnanelal assets and

252.253.254.

vice versa.Kiteflying meansaccommodation receipts and payments and not genuine trade transactionsRTIAct - party seeking information 'need not disclose the reasons for which the information sought for.Excessof current liability over current assets means the firm may face difficulties in meeting its financialobligations in short term.ATMcashnot dispensed- customercomplaint to be redressedwith in 7 working daysBaselII - OperationalRisk- Basic Indicator Approach.Counterfeit notes returned after police verification, the same has to be preserved for '3 years subject to halfyearly verification.SMEDebt restructuring: It should be ensured that the unit is viable in 7 years and loan repaid within 10years.FCNR(B) Deposit Exchange risk is borne by respective banks.Validityperiodof cheque reducedto 3 months from 1.4.12 as per : RBI Guidelines under sec 35A of BRActPMEGP- MarginI Promotercontribution : 100/0 General & 5% for Spl category borrowersDR! - FamilyIncome in Semiurban - Ceiling Rs. 24000/-PCFC- Refinance- Not availableCrossedchequepayment acrossthe counter to the authorizedOfficer of collecting Bank - can be made and there areno violation as per NI Act.The consequenceof non registration of Partnership- firm cannot sue others for its dues.. . .Banksare required to implement the award of Ombudsmanunlessa decision is taken to appeal against the sameWithinone month from the date of receipt of acceptance of the award by the complainant.An NPAhas been purchasedby a bank from another bank.What will be the risk weight for the purchasingbank for thisaccount?1000/0 •

FCNR(B) account can not be opened in which of the following currencies - USDollar, Euro, GBP,AustralianDollar: Noneof theseas it can be opened in any freely convertiblecurrency. .In casepackingcredit in foreign currency is not adjustedwithin 180 days, what will be the rate of Interest chargeableonsuchadvanceafter 180 days: Bank's discretionIn short term agricultural advances, interest subvention is allowed. What is the rule in this regard? : Interestsubvention at the rate of 20/0 allowed up to Rs 3 lakh and bank will charge interest at the rate of 7%.RBI has issued star series notes for replacement of wrongly printed currency notes. Currently, these notes have beenissuedin the denomination of : Rs 10, Rs 20, Rs 50, Rs 100.Hypothecationwhich createsequitable charqe has be~ndefined in: SARFAE~I Act;Packingcredit is normally allowed for a maximum penodof : as per bank discretion. . .

~a~~~~~~~~e~~~~~t~y~:~e~~T~~) t~k;r~~;: of Wh!~ho7~~~~~S~?~~!~t:;~~P~~~~~;0:~:I:~iche:i:~. estment in plant & machinery does not exceedRs 10 lac in the caseof manufactunng Units an oes no exc~ .' .~~lac in equipment in the caseof serviceenterpnses. oft k . the same as NPAin the books of sellingbook for atA bankcan sell its NPAaccount to another bank only a er eepmqleast:Anytime 7

255.256.257.

258.

259.260.261.262.263.264.

265.266.

267.

268.

269.

270.

271.

272.273.274.275.

276.

A K GUPTA'S BANKERS TRAINING INSTITUTE ({75, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER 8r. STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)

277. What is the maximumamount of subsidyfor Self HelpGroup in SGSYscheme?:Rs 125,000.278. An NREdepositwas made for 5 years with the bank. What will be the interest rate payable on this FOR:As per bank

discretion.279. For calculationof capitaladequacyratio, the risk weight for CommercialRealEstatefor commercialbldg is : 100%280. If in a NPAaccount,the value of security both primary and collateraldeterioratesso much that its realizablevalue is 10%

and abovebut lessthan 50% of the amount outstanding, then this accountis directly classifiedas: Doubtful asset.281. Account holderA & Bwant to substitute their name with the nameof their sonsC & 0 in the account. What should the

bank do?: Substitution of all names is not allowed. At least one of the original account holder should be

282.retained in the account.For making referenceunder CDR-I, what are the rules regardingconsentof Creditors: Consent of 200/0 of creditorsby value is required. (There is no condition regarding number).When only imageof cheque is sent to the paying bank while sendingchequefor collection insteadof sending the physicalcheque,the processis called: Cheque TruncationMaximumamount of loan to DR! benefiCiarywas revised as per UnionBudget2007-08. What is the maximum loan otherthan the HousingLoanto SC/sr that can be granted to DRI beneficiary:Rs.15000/-SGSYschemewhich is applicableonly in the rural areas has been implementedwith what objective?: The objective ofSGSY is to bring the assisted poor families (Swarozgaris) above the poverty line by ensuring appreciablesustained income over period of time.ServiceTax shouldbe depositedwith the Govt. by: 5th day of the next month (within 5 days after close of monthin which it was deducted)Indian Banksare required to lend at least to Agriculture: 18% of Adjusted Net Bank Credit (or 45% of PSadvances).The maximumamount of guarantee cover for loans granted to smalland micro enterprises other than beneficiariesin theNorth EasternRegionand women entrepreneursand guaranteedby CGFTis: 750/0 of the amount outstanding up toRs 50 lakh and 50% thereafter as on the date of account becoming NPA with a maximum of Rs. 50 lacs(coverage upto 100 lac)A Letter of Credit that contains clausefor giving advancefor pre-shipmentis called: Red Clause LCWhat is maximum limit for remitting funds abroad under UberalisedRemittance Scheme in a financial year: .

283.

284.

285.

286.

287.

288.

289.290.

.....

291.292.293.

Starting of a computer is called: BootingWhich of the following is not of minority community-Muslim,Sikh,Christian,Jain, None of these as all are minority?:N!Mc: oF1h('Si!What is the rate of provision in case of doubtful assets which is in 02 category i.e. which is doubtful for two years?:Unsecuredportion 100%; securedportion: 40%For taking action underSARFAESI,the outstanding should be: More than Rs.l.00 lacA Cheque partly written in English& partly in regional languageis presentedfor payment. What should the bank do?:May be paid, if otherwise in order and the language other than English is the regional language of the areawhere the cheque is presented.An authority has beengranted in an account. You have receivedinformationabout the death of the Principal.Today, youreceive a cheque signed by the agent which is dated prior to the death of the Principal. What should the bank do? :Cheque can not be paid as authority of agent comes to end with the death of the Principal.You are maintainingcurrent account in the name of the Trust. You receivenotice of death of one of the trustees. Afterthis notice, a chequesigned by the deceasedtrustee is presentedfor payment.What should the bank do?: Cheque maybe paid, if otherwise in order.For coverageunderPriority sector, the amount of advancefor RetailTrade should not be more than: Rs.500 lacsWhat is firewall?:A software programme for protecting against unauthorized access to the information.As p~r ConsumerProtectionAct, the period for filing appeal to StateCommissionagainst decisionof the District Forumis:maximum 30 days~h~t is Co~posite fee payabl~to under CGFTfor loansmore than Rs5 lac in North East and other areas: .85% p.a. of~Imlt sanctioned for loans InNorth East or to woman or to micro enterprise and 10/0p.a. of limit sanctionedIn other casesStockAudit is required in respectof loansof: Rs.5.00 crore & aboveLimit for filing suit in DRT: Rs.l0 lacs and aboveWhe~~pr~visionrequired (Standard, SubStandard, Doubtful, Loss): In all casesProvision I~Sta~da~d~~egory.under Direct Agriculture & SME:0.25% of outstanding.Letter received10 Hindi In RegionB, answer to be given in %age: 1000/0Who can not full fledged partner: Minor

TInhc.o~eRs.1.00lac- TaxRs.o.~O lac, Income Rs.2.00 lacs: Tax Rs.0.30 lacs Income Rs 050 lac-Tax Rs 0 03 IIS ISexample of Progressive Tax I. • •• ac-

Which is exampleof Direct Tax: Income TaxI~ ho~ ~any da~sunutilized FOREXmoney to be surrendered: 180 daysTime limit for which Pre-shipmentCredit is normally allowed' need basedCanKartaof ~UFappoint Agent or delegatethe powers to oiner co- rce~er'Moneydepositedafter receivingorder may be attached' th paf. . Yes, he can do so.

10 e case0 • attachment order

294.295.

296.

297.

298.299.300.

301.

302.303.304.305.306.307.308.

309.310.311.312.313.

8

A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar New Delhi -110063' Ph 011 65476949 09350476949)N ~ ~OOR'S INSTITUTE OF BANKING CAREERlit STUDIES(SCO34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)

314. Ongmal & duplicate draft presented simultaneouslyfor payment: Duplicate should be paid &. original should bereturned.

315. Company has registeredoffice at Delhi, factory at Kolkata& loan taken at Mumbai. For creating equitablemortgage titledeeds can be depositedat: any notified city.

316. Limit for settling casesin LokAdalat: Upto Rs.20 lacs317. Provision in sub standardaccount, which areabi-initio unsecured: 25% for other than infrastructure318. After how much time, NPAaccount can be sold: Any time after NPA319. Reasonsfor avoiding advanceto Un-RegisteredPartnershipFirm: Firm can not sue against anyone for recovery of

its debts but anyone can sue against the firm.320. What is the effect of 'Not NegotiableCrOSSing?:Transferee does not get better title than the transferor.321. If documents are to be presented in about July month: these can be presented within 5 days before or 5 days

after.322. Composite loan limit for SmallManufacturingenterprises:Rs.l.00 crore323. Pledgeis defined in: Indian Contract Act324. When account will be out of order, in caseof non-receipt of Stock Statement: If statement not received for last 3

months.325. Limit for classifying the advance as Indirect Agriculture for Advance to Traders dealing in Input of allied activities:

Rs.500 lacs326. Exemptionof CollateralSecurity in Agri-BusinessClinicsCentre: Up to Rs.5.00 lacs327. Which accounts are not eligible for CDR: Accounts under Loss category328. Payment of chequecan be stopped by: only Drawer of the cheque329. Who is not willful defaulter: Default beyond the control of the borrower330. Malthusian theory on population: Population increased geometrically &. resources increased arithmetically331. When limitation will not extend: Balance Confirmation signed after expiry of limitation period332. Chargewhere SARFAESIaction can not taken: Pledge333. Account payeecrossingdefined in: Not defined any where334. List of willful defaulter with balanceof __ to be submitted to RBI: Rs.25 lacs and above335. CalculateTangible NetWorth: Landand building: 200 Lacs;Capital:80000intangibleasset:15000: 65,000336. What is the current rate of interest paid on CRR?:NIL337. What is the provisioning requirement for personalloansin caseof standardassets?.400/0 of outstanding338. Supervisory Reviewaccording to which CentralBankof the country is to ensurethat proper capital hasbeen provided for

risk exposure and maintain proper systemfor the sameis provided under?:Pillar II of Basel II.339. Documents not stampedproperly is what kindof risk?: Legal Risk340. Riskarising due to failure or inadequacyof of internalsystem, procedure,peopleis: Operational Risk341. What are the componentsof credit risk?:Transaction risk or default risk and portfolio risk342. How can be the transferability of Bill of exchangecan be restricted? By making restrictive endorsement343. If on a Bill of Exchange,two parallel lines are drawn and not negotiable is written between the lines, what kind of the

crossingwill be there: Provisions relating to crossing are not applicable to Bill of Exchange.344. Within priority sector, what is the allocationto weakersection?: 25%345. In SGSY,what is the reservationfor women?40%346. Minimum women Self HelpGroups in SGSY?50% of the total Self Help Groups347. Loanfor setting up warehouse,godown will be part of priority sector, providedthese are located:Anywhere348. Where can title deedsbe deposited for equitablemortgage?Any notified Place349. Challanused for depositingservicetax:GR7350. Quarterly statement for TDSon salary shouldbe submitted on form 24-Qwithin: 15days of the close of the quarter351. Maximumtime within which reply must be givenunderRight to information act?30 days352. Subordinate Debt should not be more than % of tier-I capital? 50%353. On maturity of bank guarantee, an intimation is send to customer and if no responsereceivedin 30 days, vouchers are

reversed. This is done for following reason?Bank has to maintain capital on Bank Guarantee for the purpose ofcapital adequacy norms.

354. Refinancefor export credit from RBI is availablefor? 180 days355. What is the maximum sourceof forex inflow?FII356. Which is the largest sourceof liquidity in equitymarket?FII357. Which of the following is not true about "specialrunningNc" of pre-shipmentcredit? Bills pertaining to other exports

orders can not be marked off against pre shipment for a particular bill.358. What is the status of Nominee?Trustee of Legal heirs359. Documents are releasedto importers on the basisof: Trust Receipt360. Safedeposit vault is governedby provisionsof: Transfer of Property act361. Full form of INANET? Indian Financial Network362. Which of the following is not a disadvantageof CCaccount?Issuance of cheque book .363. A cheque signed by agent has been presentedafter his death for payment.What should the bankdo?: The cheque will

be paid if otherwise in order.364. In which caseCDRis not valid? Finance by single bank

9

A K GUPTA'S BANKERS TRAINING INSTITUTE «7S, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623,09317812720)

365. Whichof the following does not come under purview of trade union?To take control of Industry366. As per FEMA,a resident is a person who stayed in India for __ days in the previous financial year: more than 182

Days367. CAMELrating is done by: RBI to judge the health of banks368. Purposeof star seriesnotes: To replace defectively printed notes369. Photographin accountsare taken as per recommendationsof: Ghosh Committee370. Customer-bankrelationship in locker account: Lessee-Lessor371. In caseof payment of rent on property, tax is deducted at sourcewhen the payment of rent is likely to be more than Rs

180,000per annum.The rate of TDS in caseof rent payableto an individualis: 10%372. Which of the following is an indirect tax? Sales Tax373. Implementation of CDRpackageof SMEto be completed in:60 days . .374. In case of a loan under consortium, each bank can have Maximumworking capital limit of Rs __ : No rule In this

regard. Rules of consortium to be framed by members of consortium.375. Meetingof the Official LanguageCommittee is held: Quarterly376. In caseof revaluationof fixed assets, what percentageof revaluationreservewill be added to Tier IIcapital of the bank?:

450/0377. Pensioneraccountcan be opened jointly with? Spouse as Either of Survivor or Former or Survivor.378. When a loan is recoveredfrom guarantor for dues payableby the PrincipalDebtor, debtor becomesentitled to all rights

and remedies which the creditor had against the Principal Debtor. This right of guarantor is called: Right ofsubrogation.

379. What is the %age of credit that should be given to micro enterpriseswithin small enterprises?: Minimum 60% ofadvance to Small enterprises should be given to Micro enterprises.

380. Method usedfor calculation of bank finance for working capital up to Rs.2crore to small Serviceenterprises?Simplifiedturnover method

381. For being defined as Mediumenterprise, the original investmentin plant & machinery should be: More than Rs 5 croreand up to Rs 10 crore.

382. As per Turnover method of working capital requirement, if salesturnover is RS.4Cr, then Bank finance can be: Rs.80lacs

383. Upto what amount District forum can be approachedunderConsumerProtectionAct?: Rs.20 Lacs384. For implementationof CDRconsent is required from: 75% of creditors by value and 600/0 by number.385. Appeal against the award of Ombudsman can be made by the bank within: 30 days of receiving the acceptance

from the complainant.386. Chequeissuedby director of a company and presentedafter hisdeathwill be: Passed if in order387. BRICcountries include: Brazil, Russia, India, China388. As per UCPDC600, beginningof the month implies: 1st to 10th of month389. What is the target for SC/STunder DRI: 40%390. How Interest suspenseaccount is to be treated?: Reduce the balance for calculation of provisioning purpose391. Differencebetween buying and selling rate of dealer is called: Dealer's spread392. Selling rate of currency is higher than traveller chequebecause:Holding cost of currency is high393. Account of Bankof Americawith a bank in India in Rupeeis called:Vostro394. Buy now and pay later is provided in: Credit card395. A guarantee issuedfor a seriesof transactions is called: Continuing guarantee396. What doesa fund flow statement indicate?: Sources and Uses of Funds for a period397. A crop is considereda long duration crop if the crop seasonis: More than 12 months398. Cleanaudit report is the one which is: Unqualified399. Saleof NPAis done on: Without recourse basis400. What is the effect of increase in interest rate on securities?:Decrease in the market price of the asset401. What doesa trade deficit mean?: Imports are more than exports.402. PrimaryDeficit is Fiscaldeficit?: Always less403. Best indicatorof country's growth?: GDP404. Growth of people in a country is reflected in: real per capita income405. What would be the action of central bank in recession?:create liquidity by decreasing CRR and lower the repo

rate.406. GOP+ __ = GNP:Net factor income from abroad407. Cost push inflation is due to: High cost of production408. Which one is not govt's long term goal?: To bring down Crude's cost409. Elasticityof Demandis least in the caseof: Items of necessity.410. Ante dated cheque like cheque dated 15.12.07 is presentedfor paymenton 1.1.08 whereas the account was openedon

20.12.07 : Cheque should be passed411. If amount in words and figures differ on a cheque and amount written in words is higher than the amount written in

figures, then as per sec.18 of NI Act, which amount should be paid?:amount written in words412. Photograph is obtained at the time of opening the a/c. What is the purposefor the same?: for identification of the

prospective customer

10

A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar New Delhi - 110063' Ph 011 65476949 093S0476949)N S TOOR'S INSTITUTE OF BANKING CAREER 8. STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665613,09317812720)

413. For taking action under SARFAESIAct and for acquiring assetsunder the same, bank is requiredto issuenotice of : 60days

414. Nomination facility is not available in the caseof: Trust A/c.415. If debtors are Rs4 lac, annual sale is 60 lac,what is the Debt collection period: 0.8 months416. LAFARis submitted by whom?: Statutory Auditor417. customer serviceCommittee meeting heldon: Monthly basis418. For HousingLoanof Rs.30 lac, Riskweight is: 50% if Loan to Value Ratio is up to 75%.419. Advance payment for import of goods is allowed up to ------------ without guarantee of an international bank: US

$50,00,000420. Compoundingof interest in FCNR(8) Nc if deposit remain for more than one year: after every 180 days421. In the case of financing working capital requirement of Small Manufacturing Enterprises,Turnover method of Nayak

Committee is applicablefor working capital limits upto: Rs.5 crores.422. In a letter of credit, it is written that documentscan be negotiated about 30th June. In this case,the documents can be

negotiated: Before or after 5 days of 30th lune.423. Advance given for setting up Cold Storage for storing agricultural produce will be treated as part of priority sector

provided the unit is located: Anywhere in India424. NREFixedDeposit is issued normally for maximumperiod of : As per bank discretion425. A crop will be consideredas Short Duration crop, if the crop seasonis up to : 12 months426. If value of a security in a account deterioratesso much that its realizable value is less than 10% the outstanding, the

account shall be directly classifiedto: Loss assets427. How much foreign Exchangecan be retainedby a resident individual returning from abroad:US$ 2000428. The concept of adding more peopleto bankingat affordable cost is called: financial inclusion429. Maximumamount of cash that can be acceptedfor issueof foreign currency at present is: Rs 50,000430. A person wants to open a joint accountwith his wife in such a way that the account can be operatedby him only during

his lifetime and she should be able to operatethe account only after his death. The accounthas to be opened with theinstructions: 'Former or survivor',

431. In caseof agricultural advances no duescertificate is not required from small and marginalfarmersas per RBI guidelinesfor advancesup to: {J /?to "My ~0Ltv.:t

432. Amount that can not be paid in cash in respectof term deposit by the bank as per IncomeTax rules: Rs 20,000 andabove.

433. ExpandLAN: local Area Network434. In case of doubtful accounts more than 2 years old the provision is required to be made at the rate of: 1000/0 for

unsecured portion plus 400/0 for secured portion (After the account has completed3 yearsas doubtful, the rate ofprovision is 100% for secured portion also.)

435. For wrongful dishonour of the chequethe bankis liable to: the drawer of the cheque436. In the case of purchaseof NPAsby one bank from the other, the purchasing bank can sell NPAto other bank after: 12

months from date of purchase437. Maximum amount of education loan for studiesin India that is covered under Priority sectorwhere no collateral security

and no margin required at present is: Rs 4.00 lakh438. in caseof loan against bank deposit chargeis created by: assignment439. in caseof loan against NSC,charge is createdby: assignment440. What is cash loss: net loss before depreciation (Net loss minus depreciation)441. Why fund flow statement is taken from the borrower?: To know sources from where funds have been raised and

how funds have been utilized and to know changes in net working capital position.442. Under Prime Minister Employment GuaranteeProgramme (PMEGP),the maximum cost of the project/unit admissible

under manufacturing sector is: Rs. 25lakh. (under businessand servicesector Rs 10 lakh)443. Stand by LC is just like: Financial guarantee (A guarantee of payment issued by a bankon behalf of a client that is

used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standbyletters of credit are created as a sign of good faith in businesstransactions, and are proof of a buyer's credit quality andrepayment abilities)

444. A unit in serviceenterprise is consideredasmedium if the investment in equipment is: more than Rs 2 crore but up toRs 5 crore.

445. Banks print cheque books having similar particulars.The format of cheque is prescribedby which Act : Not defined inany Act. It is as per practice .

446. Which crossing takes away the feature of assumptionof defective free title available to the transferee: Not negotiablecrossing

447. Who is appointed to tackle public complaintsagainst the public authorities: Ombudsman448. What is the maximum loan that can be allowedto a dealer in cattle feed / poultry feed, for treating the same as indirect

agricultural advancewithin priority sector: Rs.SOO lac449. An NRI can open a joint account with a residentin caseof _ accounts: NRO/NRE/FCNR. (For ~R~~FCNR on. ~/S)450. The facility of nomination is not availableto Trust account because it is __ account : Non-indiVidual (faCility of

nomination is availableonly in the caseof individual(s).451. In 8 region, the reply to letters in Hindi is to be given to the extent of __ % : 1000/0

11

A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)

452. Within priority sector target of 40% of Adjusted Net Bank Credit or Credit equivalent of Off BalanceSheet Exposure,whichever is higher, the sub-target for weaker sectionis : 250/0 (of PSadvances)

453. Current ratio indicates of a firm: liquidity454. The true owner of a cheque has been deprivedof his right by collection of the cheque for a different person.This is called

: Conversion455. Banksprovide term loans and deferred paymentguaranteeto finance capital assets like plant and machinery.What is the

difference between these two: Outlay of funds.456. For the purposeof creation of equitable mortgage,the placefor deposit of the title deed is notified by : State G~vt457. As per recent RBI/Govt. guidelines, pensionerscan open account jointly with: spouse, to be operated as either or

survivor or former or survivor.458. Amount of maximum loan given to micro and smallenterprisesthat is coveredunder CGFTMSEscheme: Rs.l00 lac459. The R-returns are submitted by the banks to RBIon : Fortnightly basis (15th and last day of the month)460. A loan associatedwith a short duration crop, becomessub-standardafter remaining specialmention accountfor a period

of : two crop seasons461. If an SSI units holds a margin of Rs.20 lac and its projected sales are RsAOOlac, its working capital limit will be

Rs.801ac462. Customerday is observedby banksat what periodicity?:once in a month (15th day of every month)463. While paying a bearer cheque, signatures are obtained on the back side of the cheque. Why ? : As evidence of

payment464. Sales/ debtor ratio is called__ ratio. It indicates__ : Debtor-turnover, efficiency of collection of debtors465. Authorised capital is Rs.10 lac. Paid up capital Rs.6 lac. The loss of previousyear is Rs.1 lac. Lossin current year is Rs3

lac. The tangible net worth is : Rs.2 lac466. Whether Minor can nominate? no. On his behalf nomination will be done by a person legally competent to act

on his behalf.467. Number of days allowed to opening bank and negotiating bank to verify that documents are as per terms of LC is: 5

banking days each468. Chequeis dated before date of its presentation is called:Antedated cheque469. Riskarising on account of mistakesdone byhuman beingsis called: operational risk470. Account of a Foreign correspondent bank abroad openedwith domestic bank is __ account for the domestic bank:

Vostro (it will be nostro for the correspondent bank)471. The capital adequacy ratio is computed by the following formula: Capital/Risk Weighted Assets472. An endorsement in which endorser excludeshis liability is called: sans recourse473. When a company is financed against the securityof hypothecation or mortgage of its movable property, the company is

required to file particulars of charge with: Registrar of Companies (no registration of charge required for pledge).474. In the caseof hypothecation: both possession &ownership is with borrower475. Who is called as Holder as per N I Act?: Who is entitled to possession of the instrument in his own name (actual

possession is not necessary).476. If a cheque is dishonoured due to insufficient funds, then as per section 138 of N I Act, court may award imprisonment

up to: 2years477. On the face of a cheque, the nameof a bank is written without two parallel lines.This will amount to: special crossing478. Nc payeecrossing is defined in : it is not defined in any Act. It is as per practice479. Refinanceagainst eligible export finance is availablefrom :RBI480. If stock statement is not submitted for 3 months from its due date and DP is allowed on the basisof old stock report,

then the account will be consideredNPAafter:90 days481. Limitation period for mortgage :12 years482. Loan is in the name of A&B. Both have signeddocuments.A signs the BalanceConfirmation but B does not. In this case

limitation will extend against: both483. White plastic is called : Counterfeit card484. Nomination facility for deposit accounts is availableunder: 45ZA & 45 ZB of the BR act485. NREa/c holder can open which type of accounts?:SB/CA/RD/FD486. If a bank is oversold in foreign exchangeand foreign currency is appreciating : bank will incur loss487. Interest rate on SavingBank is fixed by : Banks themselves w.e.f. 25.10.11488. What are the Service charges for using ATMsof other banks for balance enquiries: Nil upto 5 transactions ( 3 at

Metros)489. Term deposit can be opened for a minimum periodof: 7 days490. A cash credit account will be treated as NPAif the CClimit is not renewedwithin __ days from the due date of renewal:

180 days.491. Maximum amount of deposit which a bank may ask while allowing locker facility to a customer: Advance rent for 3

years and locker breaking charges492. An Authorised Dealer can allow remittance up to __ to a resident individual for remittance abroad under Liberalised

remittance scheme? ..... .. ' . ... . •

12

A K GUPTA'S B~NKERS TRAINING INSTITUTE {(75, Block 8G - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)N S TOOR S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 330, Chandigarh 160020; 0172 2665623, 09317812720)

493. A solicitor has account in his name and in the nameof his client. Garnisheeorder is received in the nameof the solicitor.Whether the samewill be applicable in the nameof client also: No because two accounts are not in the same rightand same capacity.

494. An advance to a farmer against warehouse receipt of his crop will be treated as direct agricultural advance provided:amount of advance is up to Rs 50 lakh and up to 12 months.

495. Which of the following is not a material alteration?Changing bearer to order496. What will be the tangible net worth if total assetsare Rs35 crore; total outside liability Rs30 crore; intangible assetsRs

3 crore: Rs 2 crore497. A bill issuedwithout considerationis called:Accomodation Bill498. There is a joint account in the name of A &B.A chequeis drawn by A but the alteration in the amount is authenticated by

B.Whether bank can pay the cheque: Yes provided the operation is either or survivor.499. A clean bill of lading means: a bill of lading in which the condition of goods or packing is not stated to be

defective.500. What is negative Lien?: A declaration by borrower that he will not sell or create charge of any body on a

particular asset without consent of the bank501. Why banks do not grant loan to a minor?: A minor is not competent to contract. Therefore, loan given to a

minor can not be recovered.502. The term used for conversionor transfer of propertyderived from a criminal offense for the purposeof concealing, or

disguising, the illicit origin of the property is called:Money laundering503. In which of the following situations bankwill not be a holder in due course?:When bank credits the account of the

customer after receipt of funds on account of cheque sent for collection504. UnderSRMSscheme, loanapplication for projectsup to Rs25,000 should be disposedoff within: fortnight505. The rate at which RBI rediscountsthe usancebillsof banks is called: Bank Rate506. Normally bank can not grant advanceto its directors.However, there are certain exemptions to this rule. Thus a bank can

grant a loan to its director against the securityof: Government securities, life insurance policies or fixed deposit;507. Which of the following is not true about RBI (a) RBI announces credit and monetary policy (b) RBI maintains forex

reserves (c) RBI allows ways and means advanceto central Govt (d) Banking Secretary of Union" Govt is theGovernor of RBI: Ans is (d)

508. Who is related to famousGrameenBankfor upliftmentof poor people : Mohd. Yunus509. What is the economicunit for financing milchanimals?:,2.minimum two animalsshould be financed.510. SAFTAis related to :TRAOE511. In the caseof IPO, the company is requiredto allot sharesor make refund within: 30 days of the closure of the issue

in case of fixed price public issues; 15 days in case of book built issues and 15 days in case of right issues512. Bankcan charge collectionchargesof not more than _for outstation chequesof Rs10000to Rs1 lac in saving bank: Rs

100513. At which of the following placesStockexchangeis not located? (a) Kanpur (b) Ludhiana (c) Indore (d) Allahabad514. What is the period of 1i" Fiveyear plan :2012-2017515. ShantiSwaroop Bhatnagaraward is relatedto : Science & Technology516. What are the charges that can be charged by banks for Inward RTGS/ NEFT / ECStransactions: Nil. These

transactions are provided free of cost.517. What are the Chargesfor RTGSof Rs 2 lacto Rs 5 lac : Not exceeding Rs.25 plus service tax518. Whichof the following states havemaximumliteracyrate in the caseof women: Kerala519. EUROis the currency of: European union520. Headoffice of NABARDis locatedat: Mumbai (SIOBI Head Office at Lucknow)521. HeadOffice of AsianDevelopmentBank is locatedat: Manila (Philippines)522. What is the salary of Presidentof India?: Rs 1,50,000per month. (On 11 September2008 Governmenthas increasedthe

salaryof Presidentto Rs1.5 lakh effective since2007)523. Whichof the following is not related to banking?(a) HDFC (b) 100 (c) Yes (d) SBI (e) SEBI524. What is true about DR! target?: two third of DRI advances should be made through rural and semi urban

branches.525. Which of the following chequescan not be paidby the bank? : A cheque on which signatures of drawer have been

forged irrespective of the cleverness in forgery and though these appear to be same as that of the drawer.526. What is the minimum andmaximum period for whichFCNR(B)deposit can be opened?: 1 year and 5 years.527. What is true about operation in NROaccount by Powerof Attorney granted in favour of a resident by the non resident

individual account holder?: He can not repatriate outside India funds held in the account other than to thenon-resident individual account holder nor to make payment by way of gift to a resident on behalf of thenonresident account holder or transfer funds from the account to another NRO account.

528. Whichof the following accountscan be openedasNROaccount? SB/CA/RD/FD/AIIof these529. In the case of Postshipment finance in Rupeesupto 30111 June 2010, concessionalrate of interest i.e. BPLRminus 2.5% is

allowed up to: transit period in case of demand bills and up to 180 days in the case of usance bills.530. For being considered for Corporate Debt RestructUring,the account should have been classifiedas: Standard or Sub

Standard or Doubtful account and not loss account.

13

A K GUPTA'S BANKERSTRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 01165476949,09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER&: STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)

531. For enforcing right under SARFESAIAct, in the case of consortium advances, consent of which bankers is required?:consent of 600/0 bankers by value is required.

532. For capital adequacypurposes, riskweight for personal loans is : 125%533. A house loan has been granted which falls in the risk weight category of 50%. If this loan has been made for Rs 100,

how much capital bank is required to bring for this housing loan? : Rs 4.5 (Banks are requiredto have capital ad~qua~ratio of 9%. It means for risk weightedassetof Rs 100 bank is required to bring capital of Rs 9. Sincethe risk weight Inthis case is 50% the risk weighted assetsfor a loan of Rs 100 are Rs50. Capital requirementis Rs 4.5 i.e. 9% of Rs50.)

534. A bank can make appeal against the award of Ombudsman within: 30 days of receiving acceptance from thecomplainant. st

535. If on a letter of Credit, date is mentionedas"end of the month", then as per UCPOC600, it will mean: 21 to last dayof the month.

536. As per Official language Policy, in Region"C", how much percentageof the Sign Boardsshouldbe in Hindi?: No specifictarget.

537. At present banksare required to maintaincapitaladequacy ratio of 9% and Tier II capital shouldnot be more than Tier I.It means that banks are required to bring Tier I capital of at least 4.5% of the risk weightedassets. With effect fromwhich date, bankswill be required to bringTier I capital of 6% of the risk weighted assets?:31st March 2010.

538. What is the target for export credit within the priority sector target of 40% for domesticscheduledcommercial banks inIndia?: Nil.

539. For making referenceunder CDR,what shouldbe the minimum outstanding amount?: Rs10 crore540. FlU stands for: Financial Intelligence Unit (India)541. A bank purchases NPAfrom other bank. The risk weight to be assigned by purchasing bank on this account will be:

100%.542. Subordinated Debt which is a componentof Tier II capital, is shown in the balance sheetas a part of: Other Liabilities

and Provisions on the liability side of the Balance Sheet.543. If current ratio is 2: land current liability is Rs 20,000, the current assetswould be: Rs 40,000544. As per section 18 of the N I Act, if the amountwritten on a cheque in words and figures differ, then what amount should

be paid by the bank?Amount written in words.545. As per Micro, small and medium enterprisedevelopment Act 2006, a small manufacturing enterprise is one in which

original investment in plant and machineryis: more than Rs25 lakh and up to Rs5 crore.546. Star series notes have been issuedfor: replacement of wrongly printed notes (theseare issued in the denomination

of Rs 10, Rs 20, Rs50, Rs 100 only).547. Converting a physical cheque to electronicform and sending only image of the cheque to the paying bank is called:

Cheque Truncation548. Which of the following represent DebtServiceCoverageRatio: (Net Profit after tax + Depreciation + Interest on

Term loan) divided by (Annual instalment of term loan + interest on term loan)549. While flnandnq seasonal industries, which method should be adopted for fixing working capital limits?: Cash Budget

Method.550. Two chequeshave been presentedto you as paying banker. One is dated prior to openingthe account and other is dated

prior to issueof cheque book. Whatwill you do as paying banker?: Both cheques will be paid.551. The projected annual sale of a unit is Rs 4 crore. In casemargin is Rs 20 lakh, what will be the amount of limit sanctioned

to the borrower under Trunover method?:Rs 80 lakh.552. Under SGSYScheme, how the instalmentshould be fixed?: Repayment instalments should not be more than 50

percent of the incremental net income expected from the project.553. In the caseof restructuring of SMEwhichtype of accounts are not eligible for restructuring?: Loss accounts554. CDRcovers which type of accountsfor restructuring?: Accounts of corporates dealing both in industrial and non

industrial activities.555. Under LiberalisedRemittance Scheme,·whichof the following is true?: a) Remittance can be made by individual only b)

Remittancecan be made for permissiblecurrent account and capital account transaction. c) Remittancecan not be madeby Trust or Partnershipd) If remittanceis to be made no credit is to be provided e) all of these

556. Why IT Buying rate is higher than the BillsBuying Rate?: As Nostro account of the bank is credited earlier beforemaking payment to the customer.

557. UCPDCis issuedby: a) ICC b) RBI c) IMFd) any of these: ICC Paris.558. If in a lC words around is written with datethen variation of _is allowed in the period: +l : 5 calendar days559. Expand IRR : Internal Rate of Return560. Sensexof 30 scrips is related to: Bombay Stock Exchange (BSE)561. Sub-prime is an risk. (Operational and Credit Risk)562. KYC and flU in India are associatedwith: preventing money laundering563. The net worth of Asset ReconstructionCompanyshould be: 15% of the assets acquired or Rs 100 crore whichever

is less.564. The Exposurenorms for a single borrower in normal case and when financing to Infrastructure are: 150/0 and 200/0

respectively of the capital funds of the bank.565. Who is not promoter of GBIl: RBI •••.

14

A K GUPTA'S B~NKERS TRAINING INSTITUTE ((75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)N S ~OOR S INsr:rrUTE OF BANKING CAREER 8r. STUDIES(SCO34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)

566. A minor was given loan. On attaining majority he acknowledgeshaving taken loan and promises to pay. Whether theloan can be recovered?: He can not ratify the contract. Hence recovery not possible.

567. In "Option" contracts,partieshave: rights to buy or sell only but not obligations.568. Post-harvest advancesgiven to agriculture form part of direct advance if given for a period of 12 months upto what

amount? : Rs.SOlac.569. Under CGFT,for loansmore than Rs 5 lac but upto Rs 50 lakh, 80 % guaranteecover is available for: Loan to Micro

and Small enterprises in NEStates, Women.570. Which one does not match in respectof reservation to SC/STs: 40% in the case of SJSRY, as in the case of SJSRY

the target for SC/sr is in the ratio of composition of population. '571. Articles of Associationmentions:directors' powers572. What are Junk Bonds?: Illiquid bonds573. A loan was sanctionedagainsta vacant land. Subsequentlya housewas constructedat the site. What security is available

now to the bank? : Both574. Garn~sheeorder is not applicableon: (a)cash received after two hours of receipt of Garnishee order (b) amount

received for safe custody (c) undrawn balances in cash credit accounts575. For repayment underglobalcredit card of an NRI, which account can be debited: NRE576. Preoperativeexpensesforms part of the following: Intangible assets577. As per Basel-II, RBIhasrecommendedadoption of __ approach for operationalrisk: basic indicator approach578. A person having locker has expired. The nominee comes. A sealed cover is found. What will you do ? : It will be

delivered to him as part of locker contents without opening the packet.579. A loan account was restructured. First payment was due on 31.12.2005 and paymentwas promptly made on 30.12.2005

and thereafter the accountwas regular for 12months. The account can be treated as standard from: 31.12.2006580. A bill was presented on 10.5.2005and accepted on 12.5.2005. The bill was due for payment on 29.07.2005 and was

returned. The last date for filing suit in this case is : 29.07.2008581. A listed bank has to prepareand publish balancesheet on quarterly basisasper: SEBI guidelines582. A small scale unit (manufacturing)can be treated as micro unit if the original investment in plant and machinery does not

exceed: Rs.2Slac " ..583.584.

A service unit can be treatedas smallscaleservice unit if the original investmentdoesnot exceed: Rs.2 crA and B raised a loan jointly and both are liable jointly and severally. When the limitation period is approaching, Aacknowledges the debt while B was away from India. Limitation expires before B comes to India and after coming, hedenies acknowledgingthe debt. Bankcan proceedfor recoveryof the loanas per limitation act from: BothThere are certain instrumentsdefined as negotiable instruments under law and certain instruments used as negotiableinstruments as per practice. Whichof the following is not a negotiable instrument as per NI Act: Dividend warrantOn repayment of debt of a company,satisfactionof charge should be filed with ROCwithin: 30 daysA foreign bank with lessthan twenty branchesin India which did not meet the targets under priority sector advanceshasto deposit the amount of short-fallwith: SIDBIA Trust Deed is silent about loans by the trust. The trustee approachesfor a loan. Under these circumstanceswhatshould the bank do?: No loan can be raisedMaximumamount of loanthat can be sanctionedunder SGSYis: No ceilingReservefor contingenciesare shown in the BalanceSheet under: Own fundsPrudential accountingnormsinclude: asset classification, income recognition, provision norms.Which of the following un/under-starnped document can not be revalidated by paying penalty: None of these as alldocuments can be revalidated.(However, as per question Demand Promisory note cannot be revalidated).A person of 65 yearsof agecan not nominate which of the following persons:TrustA forex dealer forgot to note a purchase in his book which was detected after 15 days. It is a type of __ risk:operation riskThe aggregate limit for capitalmarket exposureof a Bank is: 40 % of net worth at the end of previous yearWhich of the following wasformed first of all : (a) DRT (b) Lok Adalat (c)SARFAESI(d) CDRWhich of the following is not an acknowledgement of debt: (a) written acknowledgementof debt (b) details of debtmentioned in insolvencypetition (c) part payment of debt as per standing instructions (d) mention of debt in acommunication to anotherperson. : None of theseA minor approachesfor a loan.Which type of loan can be given to him: loan can not be sanctioned other than fornecessities.An LlC is expiring on 10.05.2008. A commotion takes place in the area and bank could not open. Under thesecircumstancescan the LCbe negotiated?:The L/e can not be negotiated because expiry date of LC can not beextended if banks are closed for reasons beyond their control.A loan of Rs.7 cr was givento a corporate for agricultural activities. Howmuch is eligible to be taken as direct agricultureadvance: Nil as entire advance is indirect agricultural advance.A public limited company can start business after receiving from Registrar of Companies. Certificate ofcommencement of business. . . • •Which of the following doesnot match in banker/customer relation: Locker fa~lhty - Bailee/Bailor .Investment in perpetualbondsis risky because: the interest is not payable if the CRAR falls below the stipulatedtarget.

585.

586.587.

588.

589.590.591.592.

593.594.

595.596.597.

598.

599.

600.

601.

602.603.

15

A K GUPTA'S BANKERS TRAINING INSTITUTE «7S, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 330, Chandigarh 160020; 0172 2665623, 09317812720)

604. Maximum loan for cover under CGTMSE: Rs.l00 lac605. Committeeon Proceduresand PerformanceAudit of PublicServices(CPPAPS)was headed by: S.~. Tarapore606. Customerservicecode hasbeenmentioned in : Banking Codes and Standards Board of India.607. What is callablesecurity: which can be called at any predetermined date.608. Servicetax not applicableto serviceprovider up to : Rs.l0 lacs609. An exposure is calledRetailExposureas per implementationof.BaselII, !f it is not ~ore ~ha~:~ cr~re. .610. ALM not responsiblefor: achieving budgets and targets (It helps In managIng lIquidity risk and Interest rate

risk).611. Voting rights to an individualshareholder in Privatebanksnot to exceed:10 % (being increased to 26%) .612. If there is no mention in LCregarding type of Bill of Ladingthat will be acceptable,then as per UCPDC,bankWill ask for:

On Board Bill of Lading.613. Which of the following is a subsidiaryof Standard& Poor?CRISIL614. Borrowing outside the country affects: capital account (As per FEMA,Capitalaccount transactions are those transaction

which result in changeof assetsor liability)615. While undertaking technical appraisal, the following is not considered: cost of production and sales (it is used for

economicviability).616. A loan is given by the bank on hypothecation of stock to Mr. A. Bank receivesseizure order from State Govt. What

should bank do?: Bank will first adjust its dues and surplus if any will be shared with the Govt.617. PI in RTGSis: Gateway of partidpating bank618. Main server of Swift in India is located at : Mumbai619. Cheque received in clearing signed by whom will not be passedout of the following: signed by a person who has

been declared insolvent.620.. Whether a customer can approachOmbudsman without first approachingthe Bank : Approaching the bank first is a

. pre-condition.621. Which currency is havinghighest value : GBP622. For foreign banks with less than 20 branches in India, for which of the following segments, there is no target under

priority sector advances:Agriculture, Export Credit, Small enterprises623. Hindi day is celebratedon : 14 Sep624. Call money is availablefor: one day625. Riskweight on HousingLoanswhere Loan to Value ratio is up to 75%: up to Rs.30 lac SOO/oand above that 75%626. Banksare required to maintain Minimum and maximumCRARof: Min 9% in India. There is no maximum.627. Under RashtriyaKrishiBheemaYojana which type of risk is not covered: War & Nuclear risk.628. X is guarantor for ODgiven to A. Balance is Dr. Rs.125000.X wants to withdraw from the guarantee: The guarantor

will be liable for the amount outstanding as on the date of expiry of notice period. Limits will be continuedif alternative security is offered to bank's satisfaction.

629. 3 partners Signeda documenton 3 different dates. Limitation period starts from: Date of last signatures.630. Acknowledgementof Debt can be obtained for how many number of times: No limit631. Sealed packet is found in locker while giving the contents to nominee: It will be delivered to nominee without

opening the packet.632. When a Bankwill not be called holder for value: When bank credited the amount of cheque only after realization

of the cheque633. A cheque is written in different handwritings / inks: Bank will pay if otherwise in order.634. In casea forged note is detected in the cash tendered at bank counter, what should the bank do?: The Note should be

impounded and not returned to the tenderer.635. Why Buying rate in caseof foreign currency is worse than rate in caseof buying cheques?: Because Holding cost of

currency is high.636. If a guardian is appointedby court, minor will becomemajor at the ageof: 18 years637. A Chequewith forged signatures is presented for payment and is paid. Bankwill be liable to: Customer (Drawer of the

cheque)638. In savingaccounts, interest is calculated on the basisof: daily product basis.639. Protection is availableto the collecting banker in caseof: Crossed cheques640. In the .ca~eof a.d.vanceto ~ limi.tedcompany for purchase of vehicle, the charge is registered with RegionalTransport

Authority 10 addition to registration of charge with Registrar of Companies.Why this is done?:So that borrower cannot sell the vehide without intimation to the bank

641. Wh~ banksprefer financingof bills?: because the advance is self liquidating642. Ma~lm~mamount of deposit in Tax Saving Schemeof the bankcan be: Rs 1,00,000643. ~hlch ISnot a G~neralCrossing:Name of a bank written between two parallel lines644. Risk related to failure of ComputerSystem is called: Operational Risk645. The Borrower has to bring funds as his contribution for loan from: Long term Sources646. In ~he~se of GoI~Cardfor ex~orters, the stand by limit is:20% of the limit sanctioned647. If tlme.'s not men~lonedon a Bill of Exchange, it will be payable: on demand648. SubordinateDebt ISshown as part of _ in the BalanceSheetof a bank: Other Liabilities and Provisions

16

A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623,09317812720)

649. A term deposit hasbeen issued in the nameof Mr A and Mrs. A payableto either or survivor. Oneday both approachthebank and request for replacementof their nameswith the namesof their children. What should the bank do? Bank cannot accept the request as name of one of original depositors must remain.

650. Format of Chequehasbeen prescribedin which Act?: None because it is as per Practice and Usage651. Bankswhich provideForeignExchangeServicesare called: Authorised Dealers652. NOSTROaccountmeans:Our account with You (Account of a bank operating in India with a banker abroad in

foreign currency)653. In an account of Oub with you, cheque has been been presentedfor payment signed by the secretary who has died.

What shouldthe bankdo?: Itwill be paid if it not dated subsequent to date of death.654. Maximumloanto an individual against sharesin demat form: Rs.20 lac655. Who can open RFCaccount: Person returning to India after staying abroad for a minimum period of 1 year.656. Garnisheeorder is applicablefor: credit balance in OD and not for cheque sent for collection.657. BankGuaranteesare issuedas per provisionsof: Indian Contract Act658. Formationof consortium,when essential: When bank touches its exposure ceiling659. cheque truncation means: converting physical cheque to electronic image and stopping physical flow of a

paper cheque.660. Foreign currencypaidto taxi driver, shop keeper, can be acceptedby: Authorised persons.661. As per Basel II, banks are required to bring capital for _risk in addition to capital for credit risk and market risk:

Operational risk662. A bank cannot acquire either as owner or as pledgee shares in a companymore than: 10 % of paid capital of the

company or 10% of the paid up capital and reserves of the bank, whichever is lower.663. Subprimecrisismeans: Problem created by lending to borrowers not meeting the credit rating criteria.664. For formation of a company,Registrarof Companieswill issue : certificate of incorporation665. My uncle gaveme gift of USD20000. Howmuch of it can be depositedin EEFC?:Nil. Itcan be placed in RFC(D)

account. In EEFCaccount export proceeds are credited.666. In the case of Manufacturing units, it will be considered as micro enterprise if the original investment in plant and

machinery does not exceed Rs __ and small if investment in plant and machinery does not exceed: Rs.25 lac;above Rs.25 lac to Rs.5 cr.

667. There is a joint account in the name of A & B payable to either or survivor.On the death of A, the amount will be payableto (a) nominee (b) B, the survivor.

668. Co is in liquidation,funds are at the disposalof : Liquidator669. Guardianappointedby will of the father is called: testamentary guardian670. Internal audit is meantfor: internal operational check ups671. Committeeon FinancialInclusion was headedby: C. Rangarajan672. Statutory Audit of banksis done as per provisionsof: Banking Regulation Act673. Provisionfor standardloan assetsother than direct Agriculture & SME,CommercialReal Estate& housing loansat teaser

rates is : 0.4% of global balance674. The bill is dated 15/03/04, the date of acceptance:20103/04.The bill retumed unpaid on 25/03/04. The limitation period

will be availableup to : 25/03/07675. A letter of creditwhich is issuedon requestof the benefldary in favourof his supplier: Back to Back LC676. Which of the followingdocumentsdoes not constitute documentof title to goods: Airway bill677. State Govt loancan be treated as NPAif alc is overdue for: 90 days678. Current Ratio= 2:1, Net working Capital=60000,What is the CurrentUabilityof the firm? : 60000679. As per internal policyof certain banks, the net worth of a firm doesnot include: a. Paid up capital b. FreeReserve c.

SharePremium d. Equity receivedfrom ForeignInvestor: Revaluation Reserves680. DD can be revalidatedwithin: any time (practicemay differ in different banks)681. Which crossingis a SpecialCrossing: Name of Bank is written in the cheque with or without parallel lines682. Within priority sector, for repair of house, how much loan can beallowedto an NRI in an urbanarea: 5 lakh .683. Supervisionof banks is done by RBI under which act: RBI Act I BRAct I Jilani Committee Report I NI Act: Bankmg

Regulation Act684. Under RTGS,what is PIs: Member Interface provided to member banks by RBI685. In account openingform as well as in nomination form, whose signatureshave to be obtained a) depositor b) nominee:

the depositor has to sign himself. Nominee's signatures are not required/obtained.686. A minor is aged15years,who is illiterate. Which type of self operatedalc can be opened -SBI RDI FD : none687. Which of the following can open SBa/c? State ElectriCityBoard/ Indian BankAssociation/ Municipalcorporation: Indian

Bank Association.

17

A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER 8r. STUDIES(SCO34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)

688. A lady who has taken a demand loan against FDcome to the branch and wants to add name of her minor son, as jointa/c holder. What you will do?: Name can be added only after adjustment of the loan. . .

689. During death claim settlement for a locker with nomination,you find one sealedpacked.What you will do: Dehver thesealed packet without opening it.

690. In a Flying club, the Secretary& Treasurer are authorizedto sign. A Chequeis ~resente~fo~payment.acr~ssthe counter.In between it has been informed that Secretaryhasdied, what you will do? : Will be paid, If otherwise Inorder

691. Option is right or obligation: A right with the buyer of the option to buy or sell and an obligation of the optionseller to do what he has agreed to do.

692. UnderSGSYwhich is not correct: 1) SHGmembers10-25 2)50% SC/ST3) 50% SUBSIDYUNDERSHG: SHGmembers10-25

693. Discontinuationof ServiceAreaApproach is as per recommendationsof : Vyas committee report694. Revival of limitation for recovery of a time barred loan is possible by: obtaining fresh promise to pay under

provisions of Indian Contract Act.695. LFAR returns relate to: Statutory audit696. Spreadin the context of bank profit lossaccountmeans:Interest earned - interest expended697. A Foreign bill purchasedhas been returned unpaid. Which rate would be applied to reverse the transaction:1T Selling

rate698. Guaranteeissued by a bank in favour of Customdepartment that party will fulfill export obligation for availingexemption

from custom duty regarding tax. Suchguarantee is called: Financial Guarantee699. As per Supremecourt decision,HUFcannot be a partner because:HUF is not a natural or legal person.700. For foreign bank with less than 20 branches in India, what is the target for priority sector advances:32% of ANBCor

Creditequivalent of Off balancesheet exposure,whicheveris higher.701. As per Preventionof Money launderingAct, preservationof records relating to closedaccounts upto: 5 yr from date of

closure of account.702. Which type of documentsunder LCare preferred?A. On board bill of lading B. CleanBill of lading C. Clausedbill of lading

: On Board & Clean Bill of lading703. Particularsof satisfactionof charge by a companyare to be filed within: 30 days from date of adjustment of loan.704. In a company, the registration of charges is required for: a)loan against FD b)lien on Govt Securities c) assiqnrnentof

BookDebtsd) lien on Shares : Book Debts705. LoanDeliverySystem is not applicableto: a) Loanto Soft ware industry b) export credit: export credit706. Forgedcurrency note: not to be returned & should be impounded707. QuickAssets= Current assets - Stocks (prepaidexpensesalso to be deducted)708. Foreign ExchangeTransactionsare settled through: a. Nostro a/c b). Vostro elc: c)Loro elc d) all a.b,c e) a & b :

Nostro account709. Immediate Credit up to 15000 is provided to a) Company; b) Partnership Firm c)Club a/c d)Proprietorship;e) None of

these :Proprietorship710. LeverageRatio in caseof a firm, indicates: Solvency of the firm711. Bankscan provide information about the customerto another Bank: General in nature, without any responsibility712. Stamp duty in usance bill of exchange: 0.25 per 1000 / 0.75 per 1000 / 1 per 1000/ none: It is according to

value and time i.e. Advalorem (it is Rs 0.65 per Rs 1000 up to 3 months usance)713. Company'sborrowing powersarise out of: Memorandum of Association714. Propertyequitably mortgaged on 08/03/08. A registeredmortgaged created on this property, on 05/03/2008 which was

got registered on 08/03/2008. Whichwill havepriority: registered mortgage as it was created earlier.715. Board of Directors want to borrow money in excessof paid up capital and reserves of the company: can be done

through a resolution passed by shareholders in the general meeting716. Other than a Bill of exchangeor promissorynote, the document which was executedabroad is requiredto be stampedon

its arrival in India within: 3 months of its arrival.717. Administrator is appointed in case of: to realize assets and payoff liabilities of a person who has died without

writing a will.718. A companyhas its registered office at Mumbai, loangranted at Bangalore,Property situated at Delhi. Equitablemortgage

can be created at - a) Notified areas notified by the state govt b) Mumbai c) Bangalore d) Delhi: EMcan be createdat Mumbai, Kolkatta or Chennai and any other place notified by state government. Therefore, it can becreated at Mumbai and at Bangalore or Delhi if these are notified by State Govt.

719. A, havingS8 a/c with you, deposited Rs.25000.A public Prosecutor sent notice to bank informing that MrA is involved inforgery and requested not to permit withdrawal in the a/c. In between one cheque of Rs.20000has beenpresented forpayment. What should be done by the bank?: Pay the cheque as Public Prosecutor is not authorized to freezethe a/c.

720. Banksaccepting NREterm deposit above 3 years pay interest at a rate: As per bank discretion.721. Auth.orisedcapital= 10 lac, paid-up capital = 60%, lossduring current year = 50000, loss last year = 2 lacs,what is the

tangible net worth of the company? : 3.5 lac722. Under.Ombudsman scheme,which type of casenot entertained?: advocate representing the customer723. Preshipment credit is normally linked to : FOBvalue724. Which committee is related to Capital account convertibility: S.S.Tarapore committee.

18

A K GUPTA'S B~NKERS TRAINING INSTITUTE «7S, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 6S476949, 09350476949)N S T~OR ~ INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)

725. Contributionmeans: profit + fixed cost726. Loansoutside India will affect: Capital account727. Whic~of the following is priority sector for foreign bankwith less than 20 branches in India? :l)Export finance 2)MSE

3)Agn: all of these728. TruncatedChequemeans: a cheque, the image of which is prepared by collecting bank to collect the money

from paying bank.729. Service.Area approach has been discontinued except for Govt. sponsored schemesas per recommendationsof: Vyas

Committee730. Stampduty charged in caseof exprot bill : nil731. Whichof the foll~Wi~gis n~t a valid cheque for paymentby the bank-l)different ink & handwriting 2) chequewith prior

date 3) chequeWith Impossibledate 4) Mutilated cheque:Mutilated cheque732. Whiledoing technical appraisal,which of the following is not considered :Cost of production and Sale (these are

usedfor economic viability)733. Whichof the following is part of infrastructure project: Schools& Hospital734. There is an SB alc in the name of A & B .They havegiven power of Attorney to 'C' for operation in AIC, The cheque

signedby the 'C' is presentedin the bank after deathof 'B' : cheque will not be passed735. EEFCAIC is maintained as: Non interest bearing Current account.736. Whichof the following is part of the SolvencyRatios:debt equity ratio.737. The liability of the drawer of bills of exchange is prime till it is not accepted by the drawee after that prime liability

becomesof Drawee.738. For initiation action under SARFAESIAct : 60% of the creditors should agree.739. Formaking reference under CDRII, consent of 75% of lenders by value and 60% by no. is required.740. Derivativesare financial instruments,the value of which depends upon other underlying.741. Nominationcan be done in favour of NRI also742. In A current account OD of Rs. 12000 is made. The FDRhas becomedue later on if the right of appropriationcan be

used. The borrower has objected that he never requestedfor overdraft, hence payment can not be appropriated. Thecustomer is right.

743. Purposeof Debt ServiceCoverageRatio to appraise Term Loan.744. WhetherPvt Ltd. Co. can be partnerwith PartnershipFirm: Yes745. Overboughtposition and the currency is depreciating: there will be loss to the bank746. ForEducationon declaration basis,a sum of $ 100000 can be remitted.747. For import of goods, advance remittance of Forex is permitted up to US D 50,00,000 without any guarantee

of any international bank. BeyondUSD50,00,000, guarantee of a reputed international Bank is required.748. FIls stake in Private Bank can be maximum: 49% with the consent of shareholders otherwise it is 24%. (FDI

74%)749. PCFCabove 180 days, the rate of interest is: as per bank's discretion.750. Fromwhere banksobtain moneyfor overnight purpose:Call Money Market.751. There is no minimum CRRor SLRas per RBI Act and BRAct.752. For classificationas indirect advanceto agriculture, investment in Agro based industries in plant and machineryshould

not be more than: None of these as advance to agro food processing industry is classifiedas Small Enterpriseand notindirectadvanceto agriculture.

753. Provisionon standard assets to be shown in balancesheet in other liabilities and provisions. Provisionfor NPAisdeductedfrom gross advances.

754. Action under SARFAESIAct can be taken simultaneouslyin DRT/Suit filed caseswithout taking permissionfrom theCompetentCourt.

755. FinancialInclusion means: providing banking servicesat affordable cost to the poor/distressed.756. CGFTSI:80% coverage not allowed to SC/Sf (only to beneficiariesin North Eaststates, women benefidaries)757. BaselII norms to be completedby Foreign banksand bankshavingforeign branchesby 31.03.2008.758. Objectiveof FEMA:to regulate forex market.759. In CBS,signaturesare loaded through scanning. .760. Whatare futures: -sale and purchaseof foreign currencyat a pre determined rate and at a pre determineddate.761. Counterfeitnote receivedat the counter what to be done?:Impound the currency note.762. Nonoting on currency note, directions issuedby RBIundersection35A of BRAct.763. Crosschequecan be paid at counter if presented by other bank.764. If valueof security is lessthan 50%, then sub standard accountcan be strai~ht wa~ta~~~t~o~~O':UI category.765. Formedicaltreatment abroadhow much amount can be remittedon declaration baSIS: ,.766. DSBReturnsrelate to: Off SiteSurveillance .767. Paymentsof a forged draft. Whowill lodge FIRpayingor collectingbank: Paymg Bank.768. Defaultby borrower in payment is Credit Risk. . . .769. Encashmentof FDRwith interest - payment can be madein cash.lf I\~~le~sR~:n:n~~~~ccount for 3 yearsbut there is770. GoldCredit Card can be issuedto exporters who are not on caution I 0 ,

no conditionof minimum export turnover. . .771. Borrowingpowers of board of directors are contained in: Articlesof ASSOCiation

19

A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)N S TOOR'S INSTITUTE OF BANKING CAREER 8r. STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720) .

772. Locker can be broken open after notice to the hirer if the same is not operated for: more than three years for mediumrisk categoryor one year for a higher risk category, and the locker-hirer does not respondnor operates the locker.

773. Reservationfor women beneficiariesunderSGSYis: 40%.774. The Bank did not disclose all material facts regarding loan to the guarantor while obtaining guarantee. ~In ?uaran~othr

escape liability?: Guarantor cannot escapefrom his liability as it is not necessaryto discloseall the matena s ractsWIregards to the loan. . . ...

775. Banksare required to obtain audited financial papers from non corporate borrowersfor granting working capital limit of:RS.25lakh&above

776. As per RBIGUidelines,the chargesfor closureof bank account before stipulated periodshould not exceed: not applicableas banks are free to fix accountclosurecharges

777. 100% Export Oriented Unit can deposit __ % of export proceeds in Exchange Earners Foreign Currencyaccount.:100%

778. Bank/FIs should submit the list of suit-filed accounts of wilful defaulters of Rs.__ as at end-March, June, Septemberand December every year to Credit Information Bureau (India) Ltd. (GBIL) and submit the quarterly list of wilfuldefaulters where suits have not beenfiled only to RBI: 25 lakhand above

779. If a complainant is not satisfiedwith the award or his complaint is rejected by the Bankingombudsmen, he can prefer anappeal to Deputy Governor, RBI within: 30 days of the of the date of receipt of communication regarding award orrejection of the complaint.

780. The Branch Level Customer ServiceCommittee may meet to study complaints/ suggestions, cases of delay,difficulties faced 1 reported by customers 1 members of the Committee and evolve ways and means of improvingcustomer service: at least oncea month

781. Minimumamount of remittanceunder RTGSis :Rs.2Iakh782. Original FDis.ln the nameof the Husband& Wife for 3 years.After 6 months, both husbandand wife request to replace

the nameJR·the FORwith the nameof their son only: Bankcannot do this sinceoneoriginalapplicant required.783. Tier II capitalcan be maximumup to : 100% of Tier -1 capital.784. PerpetualNon redeemablepreferenceshare is a part of: Tier -1 capital785. The main sourceof infrastructure financeare: FDI investment, Pensionfunds, Insurancefunds.786. MainObjectiveof Infrastructure DevelopmentCorporation is : Developmentof infrastructureof the country.787. The periodof 12th FiveYearplan is: 2012-2017.788. A manufacturing unit will be classifiedasmedium enterprise if original investment in plant & Machinery is: more than Rs5

crore but up to Rs10crores. I789. As per RBIGUidelines, no duescertificate is not required with respect to advanceto farmers up to: U~ PrYl"l A~04vc:r790. An accountwas opened on 24.11.2007and the cheque book was issuedon 30.11.2007.Two cheques dated 18.11.2007

& 22.11.2007 are presented for payment on 08.12.2007. What should the bank do?: The cheques can be passed ifotherwise in order.

791. In caseof wrongful dishonourof cheque,bank is liable to: account holder only792. In Import business,importer can take delivery of goods: on the basisof trust receipt.793. Who can seekinformation underRight to Information Act: AnyCitizenof India can ask for information794. The GarnisheeOrder is applicableon the account of a customer when the relationship between banker customer is:

Debtor & Creditor.795. A private limited company with Registeredoffice at Bangalorehas raised loan from a branch located at Mumbai. For

creating equitable mortgage, title deedscan be deposited at: Mumbai, Kolkatta,Chennaior any other notified place.796. A ch~ue is presentedfor payment in which amount in figures is mentioned as Rs10,000whereasthe amount in words is

mentioned as RsTen lakh only. In terms of section 18 of the N I Act, what should the bank do?: The amount written inwords shouldbe paid.

797. A ch~ue o~Rs.47001- was presentedfor payment when the balance in the accountwas Rs. 40001-. On being returnedfor lnsuffident funds, the presenterenquired the balance and then deposited Rs.I0001- in the account. Thereafter, the~hequewas passed.The drawer of the cheque has lodged claim against the bank. Is the bank liable?: Yes, the bank isliable for breachof secrecy.

798. In the.cas~of Hypothecation: neither possesslonnor ownershipcome to Bank.799. Negativehenmeans: Undertakingby the borrower not to sell or create charge on a particular property without consentofthe Bank.800. RecentlyRBIwarned banksagainst charging: excessive interest to small borrowers.801. NRI can openjoint a~countwith resident in the caseof: NRO,NRE& FCNR(For NRE& FCNRon F or 5 basis)802. ExpandNREGS: National RuralEmploymentGuaranteeScheme.803. A term deposit has been issuedin the nameof Mr A and Mrs. A payableto either or survivor. One da both a roach the

bank and request for replacementof their names with the namesof their children.What should the bank dof~ knot accept th~ request.as nam~of one of original depositors must remain. . n can

804. ~coeruenltsSa cre~lt bthalanceIn the savingaccount and there is a overdraft in the current accountamounting to Rs655 Bothare In e same name Bank wants to adi st edit b I .

overdraft. ~ per which right, bankcan do this?: Right : se~rOff. a ance of saving bank account towards payment of805. What conditions have to be satisfied for a loan bel r ibl f

outstanding amount Rs 10crore and above' accou~;gtoebleglstedordCDR?b:Borrowing from more than one bank; minimum, an ar , su standardor doubtful.

20

A K GUPTA'S BANKERS TRAINING INSTITUTE «75 Block BG "N S TOOR'S INSTITUTE OF BANKING CA' - I, Paschim Vlhar, New Delhi - 110063; Ph 011 65476949, 09350476949)

806 M . . REER&STUDIES(sco 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720). fi aXIn:ulm amoUunst$ofrer:n~ttanceabroad from a NRO account including sale proceeds of immovable property in India in a

manoa year: 1million.

807. A ~~f~tiating bank and issuing bank are allowed days each for scrutiny of documents drawn under Letter ofcre I 0 ensure that documents are as per LC: 5 banking days each.

808. Wbohena letter is sign~ by the borrower and based on that letter bank delivers the document of title to goods to ther~ower, such letter IScalled as: Trust Receipt

809. Which of the following is correct regarding reverse mortgage?: The scheme is available to senior citizens only' theproperty should be self occupied by the owner. '

810. How. muc.~ charges are ~harged in addition to normal collection charges and out of pocket expenses for providing instantcredit faCIlity for outstation cheques:Nil _

811. Service Tax is a~plicabl: on which of the following?: exchange, commission, DD cancellation charges, charges for returnof a cheque. It IS apphcable on all of these.

812. A limited. company has registered office at Chennai whereas loan has been raised from bank branch at Mumbai. Thecharge Will be registered with the ROCat: Chennai

813. A ~.rtnership firm conducting business other than the banking business has more than 20 members as partners. Whetherthls I.Sallowe?~: Such association is called illegal association as per Companies Act

814. Pac~mg credit ISallowed against letter of credit for: purchase of raw material, payment of wages or power.815. MaXimum amount of deposit under Tax Saver fixed deposit is: Rs 100,000.816. What are the rules relating to advance against Kisan Vikas Patra?: It can be granted provided KVP is assigned to the

bank.817. Bailment of goods to secure a debt is called: pledge.818. If current ratio is 2: 1, net working capital is Rs 20,000, current asset will be: Rs 40,000819. Deferred payment guarantee issued by a bank is a : Contingent Liability.820. If working capital limit to a borrower is Rs 10 crore and above, then as per RBI guidelines, the loan component should be

at least: as per bank's discretion.(earlier it used to be 80%).821. If the projected sale of a small (manufacturing) enterprise is Rs 80 lakh, margin available with the borrower is Rs 4 lakh,

then as per turnover method, working capital limit will be: Rs 16 lakh.822. Under Prevention of Money Laundering Act, banks are required to send cash transaction report in respect of cash deposit

or withdrawal of more than Rs 10 lakh in a month from one account within: 15 days from the close of the month.823. Who is primarily liable on Bill of exchange which has been accepted?: Acceptor (Drawee) of the Bill.824. A cheque crossed specially to a bank is presented by the same bank to paying bank for cash payment. What should the

paying bank do? Bank can make cash payment.825. Who can make nomination in the deposit account of a minor?: Guardian on behalf of the minor.826. Who can be a nominee?: Only an individual827. If a depositor dies, payment to nominee or legal heirs should be made within: 15 days of completion of formalities.828. What is the relationship between bank and customer if he has left certain goods with the bank by mistake: Bank is

trustee and Customer is beneficiary829. Appeal against the award of the Banking Ombudsman can be made to Deputy Governor, RBI within __ days of the

receipt of copy of award from the Ombudsman: 30 days830. Housing loan in urban area up to __ are covered under priority sector: Rs 25 lakh831. An agricultural advance will be classified as NPA if: it is overdue for 2 crop seasons in case of short duration crops and for

1crop season in case of long duration crops.832. Banks are required to provide minimum % of advance to small enterprises to units in which original investment in

plant and machinery does not exceed Rs 10 lakh in case of manufacturing units and original investment in equipmentdoes not exceed Rs 4 lakh in case of service enterprises: 40%

833. Registered mortgage of a property was done on 8th Dec 2007 and the same was registered with the Registrar ofAssurances on 12th December 2007. In the meantime, equitable mortgage on the same property was done on 10thDecember 2007. Which of these mortgages will have priority?: Registered mortgage which was created earlier.

834. An account was opened on 24.11.2007 and the cheque book was issued on 30.11.2007. Two cheques dated 18.11.200?& 22.11.2007 are presented for payment on 08.12.2007. What should the bank do?: The cheques can be passed Ifotherwise in order.

835. A cheque was dishonoured despite sufficient balance in the account. The bank will be liable to: Drawer of the cheque and~~~~ee. .. . ..

836. Maximum amount of fine under section 138 of N I Act for dishonour of cheque due to tnsutfklent funds IS. twice theamount of cheque. . . . .

837. Domestic Commercial Banks are required to finance at least 40% of ANBC to the PriOrity sector. Of the PriOrity sectoradvances, how much should be given to weaker section: 10% of ANBC.. . '.An NPA account will be classified directly as loss asset if the realizable value of the primary and collateral security IS. less838.than 10% of the outstanding balance.

839. Corporate Debt Restructure system is not applicable for: Skingslestlend~r~cckoaunndtssettlementriskRealTIme Gross settlement system takes care of which ris : y erruc ns .

~:~: Loan assets are classified by the banks on the basis of : Primarily by record of recovery and by status of security.

21

A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, PaschimVihar3,3NeOWC::: l~O~:~~~:. ~11~~~~~~~ ~;;~~~iJ)N STOOR'S INSTITUTE OF BANKING CAREER8t STUOIES (SCO 34, Sector , Igar, ,

842. UnderSARFAESIAct 2002 the banks give notice for paymentof due amount to the borrower / owner of chargedassetswithin __ days, otherwise action will be initiated u/s .1~(2)of the Act : 60 days

843. The minimum& maximum period of certificate of deposit IS: 7 days, 12m~nths. . .' .844. Banksprint chequebookshaving similar particulars. The forma~of cheq~eISp~eSC~lbed~y WhIC~Act '. I~ I~a pr~~~~~e845. Which crossingtakes away the feature of assumptionof defectivefree title availabe to t e tran eree. 0 neg I846. Beareruncrossedchequecan be paid to whom: To the bearer847. Who is appointedto tackle public complaints against the publicauthorities: Ombudsman. .848. On, other than a negotiable instrument, what is the time periodfor payment of stamp duty, If the document ISexecuted

outside India : 3 months849. May I helpyou counter is to be provided by bank branchesother than: Smallbranches .850. A firm is allowed a limit of RS.1.40lac at 30% margin. It wants to avail the limit fully. How much Will be the value of

security: RS.2lac . .. .. .851. What is the maximum loan that can be allowed to a dealer In cattle feed / poultry feed, Within priority sector. Rs.500lac852. An NRIcanopen a joint account with a resident in caseof _ accounts: NRO,NRE,FCNR.853. RBI keepson changingCRRwith the objective of : Regulationof liquidity to control inflation854. What is the periodicity for submissionof R-Returnsto RBI: Fortnightly855. The facility of nomination is not availableto Trust account becauseit is __ account: Non-individual856. Banks are required to make provision on standard assets at the rate of 0.25% on __ & __ accounts : Direct

agriculture and Micro& Small enterprises.857. In B region,the reply to letters in Hindi is to be given to the extent of __ % : 100%858. In caseof a jOintly operated joint account, the nominee canobtain payment,when : noneof the account holder is alive859. SGSYschemeis meant for __ in __ areas: BPL,rural860. Call moneydeposit is part of the _ sector: Organisedsector861. The long term liability to tangible net worth ratio implies: Longterm solvencyof the firm.862. Working capital requirement of a firm is required to be met through: Short term sources and surplus of long term

sourcesover long term uses863. The target for DRI advancesis : No target for DR!864. What is the maximumperiod for which an account classifiedas sub-standard,can remain: 12months865. A companywants to electronically pay the dividend to large no. of its shareholders,which include small amountsalso :

ElectronicClearingServices- Credit (ECS-Credit)866. Composite Fees in case of CGF-MSEguarantee cover for loans up to Rs 5 lakh in North East, Women or to Micro

enterprise: 0.75% p.a. of the sanctioned limit867. The terms usedfor hiding money to avoid tax is : Money laundering868. A chequeis written in different hand-writings and different inks: It will be paid869. Openingof non-residentaccounts by __ has been allowedby RBI: RRBs870. Bailmentof goodsby a person to another person, to securea loan is called : Pledge871. When mortgage is created by a person by deposit of title deedorally, it is called__ mortgage : Equitable872. Which crossingis not a general crossing : When name of bankis written within or without parallel lines.873. Who can open NREaccount: NRI874. The minimum capital adequacy ratio implemented in India, by RBI is __ % and as per BaselII recommendationsit is

_%:9%,8%875. The true owner of a cheque has been deprived his right by collectionof the chequefor a different person. This is called :

Conversion876. A bank branch receivesa ~ounterfeit note of Rs.1000,which customerwants back.What the bank should do : Impound

the c~rrency.note but credit full amount to customer. Receiptnot to be issuedto depositor.877. Isla.mlcbankinghas the features of : Conservativebanking878. Which among.the MU~lims,Christians,B~dhi.sts& J~ins is not a minority community for priOritysector: NO)1f oF 7J..ASe. •879. When rate of Interest ISexpressedby adjusting the Impact of inflation, this is called__ : Realrate of Interest880. For the purposeof creat~onof equitable mortgage, the placefor depositof the title deed is notified by : StateGovt.881. Bankscanask for deposit of advance rent on hiring a lockerfor a periodup to : 3 years882. As ~r recent RBI/Govt. g.uidelines,pensioners can open accountjOintly with: with spouse to be operated as either orsurvivor or Formeror Survivor. '883. Th~ R-returnsare submitted by the banks to RBI on : Fortnightlybasis884. Apiculture relatesto: Bee-keeping

~~~: ~~~~~~ ;~i~~~O:i~~~e;:~ :~ ~n~:n~w~:ng .ispresent~, for paymen~: it will be paid if otherwise in order887. An e t . '11be or a owmq exemptionto a depositor aged 61 years' Form 15 H

to Rs~erprl~ ~uipm:n~~~~r~s medium enterprise providing services,if the investment in _._ is above Rs.2cr and up888. The drawer of a chequewants that the endors h Id .

What type of crossingwO~ldbe required : Not-~~o~~ble n~~~~. defect free title when he receivesan endorsedcheque.889. The crossingon a cheque ISrequired to be cancelled.Whocando so' Drawer890. ~':c~e~~~ deposit can be normally accepted by banks for a peri~ of : 1 to 3 years (as per RBI max period bank

22

914.

915.916.

917.

918.919.

920.

921.

922.

923.

924.

925.

•

A K GUPTA'SB~NKERSTRAINING INSTITUTE {(75, Block BG- I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)N S TOORS IN~TITUT~OFBANKING CAREER& STUDIES(SCO34, Sector 330, Chandigarh 160020; 0172 2665623, 09317812720)

891. A loan associatedWItha short duration crop, becomessub-standardafter remaining specialmention account for a periodof : two crop seasons

892. If an SSI"uni~ holdsa margin of Rs.25 lac and its projected salesare Rs.400lac, its working capital limit will be : Rs.75lac (margmbeinqmore, the limit will be lower by that amount).

893. Customerday is observedby banks on __ of the month: 15th

894. Minimum no. of daysfor which term deposit can be made by banks: 7 days895. Under 15 point programof PrimeMinister, the no. of minority dominateddistricts in India is indicatedas : 121896. What type of benchmark is used for lending in banks : BaseRate.897. The format of chequeis prescribed in which Act : It is only a practice.898. If a fraud takesplacein a bank branch. Report is sent to ROof RBIon form: FMR1899. The amount in a cheque is written differently in words and figures and amount written in words is higher of the two :

Amount written in words will be paid.900. While payinga bearercheque, signatures are obtained on the backsideof the cheque.Why? : Asevidenceof payment901. In CDRcategory-1,what type of loan accountsare eligible: Standard& sub-standard.902. Salesj debtor ratio is called__ ratio. It indicates__ : Debtor-turnover,effiCiencyof collectionof debtors.903. Conversionmeans: unauthorized intervention in the property of anotherperson904. As per Official languagepolicy for B region, branch target to reply in Hindi letter received in Hindi is : 100%905. Riskweight for bill purchasedunder LC,for capital adequacy purposesis : 20%906. What is the right of nominee in case of term deposit that has not matured: To obtain premature payment and not raise

loan againstthe securityof such term deposit907. What shouldbe the age of depositor who will use form 15 H for declaringthat tax should not be deductedat sourcefrom

his interest incomeon term deposits? He should be senior citizen having attained 60 years of age••908. Amount of investmentin Plant and Machineryfor Micro enterprises:Rs25 lakh909. In how muchtime a substandardajc becomedoubtful: 12 months .910. In how many days a loan application for Rs.2S000j- should be disposedoff under priority sector: As per policy of the

bank.911. What is the Ceilingamount for retail traders in essential commodity for treating as prioriltyt~ectorf:RsstSd?O1~~h6months912. Moratorium period for education loan: Study period plus 12 months from comp e Ion 0 u ies

from date of employment whichever is earlier. " " . t f 3913. How much amount can be taken from new locker holder accordingto recent quidehnesof RBI. Advance ren or

years "" d f Associ f njArticles of Associationj Certificate ofDirectors Borrowing Powers are contained 10: Memoran urn 0 la 10

Incorporationj BoardResolution. thR return when to submit: fortnightly as on lSth and lastdda~ of the m~~s not appear on the caution list of RBIandGold card can be issuedto: exporters with good track recor w osenamespecific approvallist of ECGCand their acco~~t is ~andard ~orh3years. t f the cheque will be made only if one bank isA cheque is crossedin two bank- whether it ISvahd or not. t e paymen 0

acting as agentof other bank otherwise returned.Maximummemberin Joint Liability Group: 10 lssuedr: D Customersacceptanceas per contra and CreditWhich contra entry should be made when guarantee be Issue ". r.Customersacceptancesas per contra " Oateswhich kind of risk is involved: Foreign ExchangeIf a bank hasoversold position and foreign currency rate appreo ,Risk. " "" "C to R ion A under official language policy: 55% of theWhat is the target of correspondence in Hmdl from Region egletters shouldbewritten in Hindi. " h d "fng is presentedfor payment. Whether it can be passed?:yesA cheque is written in different ink and dlffer~nt an wn I "becauseit doesnot amount to material alteratlo~. " d loan She wants that the name of her rmnor son be

" lh ou against which she has raisec oeu- h I~d~~J ~a:h: ;~~ ~~~~~C:lld t~e ban~do?:Th~I~~~:~~h~ep~:~e~~Z;; ~~~:~~ ~t:ni~: lessthan 10,000 (as perA branch is consioeredas rural branch If the pop "" I t and machinery does

id r ) " " "nal Investment m panRBI gUtle I~seeswill be treated as Small (manufacturing) e~terpnsew~: ~r:;:iginal investment in plant & machinery doesAn en erpn d Medium (Manufactunng) enterpn .t eed and treate asno exc . Rs 5 crore, Rs 10crore " ? 1949 "not exceed" d "d~ that Hindi will be the official languageof India". ted as Negotiable Instruments under which

926. In which year It wa~ ~I f Lading have acquired transferability and ar~tr:ct Act! d927. Railway Receiptan I 0rty Act/ NegotiableInstruments Act j Indian.;; Liability for calculation of CRR?:Deman

Act?: Transfer of P~op~ for calculation of Net Demand& nne28 Which of the follOWingIS ~xcluded "tsj Draft Payablej None of theSe

9 . depositSjTimedepositsj SavmgDeposl

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