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fALCON

(A Momentum for Victory)

Study Material for Promotion Examinations

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INDEX

Multiple Choice Questions

S.No Topic Page No

01 Savings Bank & Time Deposits 04

02 Current Account 15

03 Digital Banking 21

04 Government Deposit Accounts 50

05 KYC, AML, CFT, FATCA and CRS 57

06 Banking Law and Practice 68

07 Banking & Finance, Economy etc. 86

08 Advances (C&I) 102

09 Advances (SME) 124

10 Advances (Per), Home Loans 149

11 Student Loan, Unsecured Personal Loans, NPA Management

158

12 Auto Loans & Other Demand Loans 169

13 AGL Advances& Financial Inclusion 176

14 Organization Structure, Efficiency Parameters & Policy Guide Lines

194

15 General Banking 219

16 Cash Department Procedures 227

17 Cheque Collection Policy 233

18 Safe Deposit Lockers 241

19 CBS & Computer Security and Computer Awareness 243

20 Situational Analysis 259

Descriptive topics

01 Rationales 265

02 For and Against Statements 283

03 Situational Analysis 294

04 Business Communication 322

05 Essay Writing 333

06 English Language Comprehension 362

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Multiple Choice Questions

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LIABILITY PRODUCTS

1 Which is/ are true in respect of Savings Bank Account?

a) A type of CASA deposit b) Inculcates savings to customers

c) Both a & b d) None of these

2 Savings Bank Account will be opened for

a) Individual Customer b) Minor

c) SHGs d) All of the above

3 A major individual can open

a) BSBDA b) Pehla Kadam

c) PehliUdan d) None of these

4 After filling the data in online SB Account opening, customer needs to come to the bank for opening the account with in

a) 7 days b) 14 days

c) 30 days d) At his convenience

5 SB Account will be opened to HUF, provided

a) Kartha is not a elder person of the

family

b) HUF is engaged in Business

c) HUF not doing any business d) None of these

6 YONO is part of

a) Project Lotus b) Project Vijay

c) Project CASA d) Project anywhere

7 The following is not mandatory for opening account by YONO

a) Voter Id Card b) PAN/ Form 60

c) Nomination d) Customer visit to branch for biometric verification.

8 After keying Customer Information by customer in online SB Opening link,

system generates

a) OTP b) TCRN

c) TARN d) AOF

9 SB Account opening using TAB Banking will be opened

a) With Welcome Kit b) Without Welcome Kit

c) With Both d) Only with ATM Card

10 For opening SB Account by resident of J &K, Assam and Meghalaya that

customer needs to submit

a) Voter Id Card b) PAN

c) Any OVD containing address and identity with Photograph

d) All of these

11 The positive confirmation of the address of the customer will be made by bank

by

a) Acknowledgement of Cheque book b) By visit or telephonic conversation

c) By both d) By personal visit only

12 Which of the following is not relate to Small Account

a) Minimum Deposit Rs 1000/- in b) Maximum Deposit Rs 50,000/-

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RUSU

c) Simplified KYC d) ATM Card will be issued

13 After keying the Account Information by customer in online SB Opening link, system generates

a) OTP b) TCRN

c) TARN d) AOF

14 If the KYC Compliance is not done in the existing accounts, debit transactions in the account will be frozen (Partial Freezing) after

a) Notice is to be issued with a

response time of 3 months to the account holder

b) Sending Reminder after 3

months of the first notice

c) If the customer doesn’t respond to above two, then only..

d) Bank has no right to freeze transactions.

15 If the KYC Compliance is not done in the existing accounts, the account will be

blocked after

a) Notice is to be issued with a response time of 3 months to the

account holder

b) Sending Reminder after 3 months of the first notice

c) After six months, If the customer

doesn’t respond to two notices of (a) & (b)

d) Bank has no right to block

transactions.

16 MOD in Savings Plus will be issued for

a) Min Rs 10,000/- and in multiples of Rs 1000/-

b) Min Rs 25,000/- and in multiples of Rs 1000/-

c) Issued in the form of TD/ STD for 1y to 5y

d) A and C

17 SB Account will be opened with a minimum deposit of

a) Rs 3000/- in Metro b) Rs 2000/- in Semi Urban

c) Both A & B d) No minimum balance

18 Maximum Deposit permitted in SBI Flexi Deposit is

a) No maximum limit b) Rs 50,000/- in a year

c) Rs 1,50,000/- in a year d) Rs 500/- per month

19 In an Annuity deposit the following is not correct

a) Minimum deposit Rs 25,000/- b) Minimum Annuity Rs 1000/- PM

c) Premature Payment in case of death of the depositor

d) Maximum Deposit Rs 1,50,000/- per annum.

20 Which of the following is not correct in case of SBI Tax Saving Scheme 2006

a) Max Deposit in a year Rs 1,50,000/-

b) Minimum Deposit Rs 1000/-

c) No premature payment before 5 years

d) HUF, NRI and PIO can open the account.

21 CSP may be given to employees of a Corporate if there are

a) 4 employees b) All are Contractual Employees

c) Any Corporate is eligible d) All of the above

22 In CSP, the following is not correct

a) GMS between Rs 5000/- to Rs

20000/- Silver

b) GMS between Rs 20000/- to Rs

50000/- Gold

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c) GMS above Rs1,00,000/- Platinum d) None of these

23 Coverage in PAI for Plastic Surgery for all variants except Silver in CSP is

a) Rs 2.00 lakhs b) Rs 5.00 lakhs

c) 10% of PAI up to Rs 2.00 lakhs d) Rs 1,500/-

24 AAI (Additional Air Accident Insurance) coverage under PAI for CSP Silver variant is


c) Rs 30.00 lakhs d) Nil

25 Which one of the following is not correct in CSP Platinum Variant

a) Inter National Platinum Debit card will be issued

b) Max debit in ATM is Rs 1.00 per day

c) Rs 2.00 lakhs limit for POS d) None of these

26 Over Draft will be given to CSP Variants

a) 2 month’s salary up to max of Rs 1.50 lakhs to Diamond

b) 2 month’s salary up to max of Rs 2.00 lakhs to Platinum

c) Both A and B are correct d) None of these

27 Coverage in PAI for death and Coma after accident for all variants in CSP is


c) 10% of PAI up to Rs 2.00 lakhs d) Rs 1,500/-

28 In PMJJY life cover available up to 55Y with a yearly premium of Rs 330/- for

a) Rs 1.00 lakh b) Rs 2.00 lakh

c) Rs 5.00 lakh d) None of these

29 Pehli Udaan will be opened to

a) Minor of above 10 years age singly b) 10y year old minor jointly with Natural Guardian only

c) 10y year old minor jointly with Guardian

d) All of these

30 Coverage in PAI for Repatriation of mortal remains for all variants in CSP is


c) Rs 20,000/- d) Rs 1,500/-

31 Which of the following is not correct in case of PMSBY

a) Life cover for Rs 2.00 lakhs b) Cover available for 18-70Y age

c) Cover available from National Insurance Co.

d) All of these

32 Which one of the following is not correct in CSP Diamond Variant

a) Inter National Platinum Debit card will be issued

b) Max debit in ATM is Rs 50,000 per day

c) Rs 2.00 lakhs limit for POS d) Inter National Gold Debit card will be issued

33 Coverage in PAI for marriage of girl child of 18-25 age for all variants in CSP is


c) 10% of PAI upto Rs 2.00 lakhs d) Rs 1,500/-

34 In case of APY, which is not correct

a) It is meant for unorganized sector retirees

b) It is meant for unorganized 18-60 age

c) Scheme administered by PFRDA d) Aadhar is not mandatory.

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35 Concession for locker rent will be given in CSP variants as under

a) 15% for Diamond b) 25% for Platinum

c) No concession for Silver & Gold d) All of these are correct

36 Which one of the following is not correct in CSP Silver Variant

a) Domestic classic Debit card will be issued

b) Max debit in ATM is Rs 40,000 per day

c) Rs 2.00 lakhs limit for POS d) No AAAI rider in PAI

37 Life cover available in PMJDY account

a) For Rs 30,000/- b) Under Aam Aadmi Bhima Yojana

c) A is correct d) Both a and b are correct

38 AAI (Additional Air Accident Insurance) coverage under PAI for CSP Silver

variant is



39 Minimum threshold limit for TDR/ STDR in SB Plus in all CSP Variants is

a) Rs 10,000/- b) Rs 25,000/-

c) Rs 35,000/- d) None of these

40 Maximum pension available in APY is

a) Rs 1,000/- per month b) Rs 2,000/- per month

c) Rs 10,000/- per month d) Rs 5,000/- per month

41 Minor can open SB Account

a) Singly if above 10Y age and signs uniformly

b) Jointly with Guardian

c) Jointly with mother d) All of these

42 AAI (Additional Air Accident Insurance) coverage under PAI for CSP diamond

variant is



43 Report name where the list of minors who attained majority is

a) Depd0622.txt b) Deposit Shadow file

c) Depdmaj.txt d) None of these

44 Maximum Deposit can be made in Minor SB Account is

a) Rs 20.00 lakhs with Guardian b) Rs 10.00 lakhs in single name

c) Both a & b are correct d) None of these

45 Which one of the following is not a Low-Risk category account

a) Pehla Kadam b) Pehli Udaan

c) Minor account opened with

guardian

d) NRE SB Account

46 Which of the following of the illiterate person is/ are to be taken while opening

SB Account?

a) LTI of the illiterate b) Photo of the Illiterate

c) Two identification marks d) All of these

47 AAI (Additional Air Accident Insurance) coverage under PAI for CSP Gold variant is



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48 Who is to ascertain the correct amount of deposit or withdrawal by illiterate customer?

a) SWO b) Passing Official

c) Only b d) A or b

49 Who appoints guardians to Mentally Retarded people to operate their accounts

a) District Court b) District Collector

c) District Medical Officer d) Both a and b

50 AAI (Additional Air Accident Insurance) coverage under PAI for CSP Platinum variant is



51 Who is to fill the pay in slip if an illiterate person come for deposit of the amount

a) Another Customer b) Service Manager

c) SWO d) Invariably by a supervising official

52 Which one of the following is not correct in case of SB Account of an illiterate

a) Authorised official signs on deposit form having confirmed the amount

b) Passing official affixes signature on the withdrawal form

confirming the amount of withdrawal

c) Independent witness required while closing the account

d) Accounts of illiterate persons will not be transferred to other branch

53 Which of the following is not correct in case of SB account opened to visually impaired person?

a) LTI to be obtained even from literate person if he/ she doesn’t sign uniformly

b) Self-Operated cheque book will be given to Visually Impaired if he/ she signs uniformly.

c) ATM Card will be issued at the time opening the account.

d) All are correct

54 SB Account will not be opened to

a) Non-Individual Business entity b) Individual Business Person for business purpose

c) Government Department with Budgetary allocation

d) All of these.

55 The following non-individual may open SB Account

a) PACS b) SHGs & VVVs

c) KVIB and DWCRA d) All of these

56 Savings Bank account will be opened to companies if

a) Licensed U/s 25 of Companies Act

1956

b) Licensed U/s 8 of Companies Act

2013

c) If the words Ltd or Pvt Ltd is not there in its name

d) All of the above

57 Photo embossed ATM card will be given to

a) Pehla Kadam accounts b) Pehli Udaan

c) All SB Accounts d) To A & B only.

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58 Which of the following is/ are to be taken from HUF while opening the SB account

a) PAN and KYC of the Kartha only b) JHF Letter on COS-38

c) Both a & b d) PAN and KYC from all adult co-

parceners

59 SB Account holder of Leprosy will affix the following on withdrawal or cheque for withdrawing the amount from the account

a) Thumb Impression b) Toe impression

c) A mark on the cheque or

withdrawal form, subject to completion of laid down formalities if a and b are not possible

d) Any one of a, b or c

60 PAI death cover for CSP Variants is

a) Rs 5.00 lakhs to Silver and Gold b) Rs 15.00 lakhs to Diamond

c) Rs 20.00 lakhs to Platinum d) All of these

61 If one of the depositors is blind or visually impaired SB Account will be opened as under

a) Singly with the blind or visually impaired person

b) Joint account to be operated by E or S

c) Joint account to be operated by Any one or Survivor

d) B or C

62 As per the National Trust for Welfare of Persons with Autism, Cerebral Palsy,

Mental Retardation and Multiple Disabilities Act, 1999, a person with disability means, a person suffering from

a) Cerebral Palsy b) Autism

c) Mental retardation d) All of the these

63 The following can open a SB Account

a) Proprietary Firm b) Partnership

c) Corporate d) PACS

64 Inoperative Account means

a) If there is no debit or credit

transactions for over a period of two years

b) If there is no debit or credit

transactions induced by customer or third party for over a period of two years

c) If there is no debit transactions for the last two years

d) None of these

65 For the purpose of treating a SB account as inoperative, customer induced

transactions are

a) Debit or Credit induced by the

customer

b) Credit of Interest of Fixed

Deposit or Dividend on shares on mandate given by customer

c) Periodical Interest credit of SB

account by bank

d) Both A and B are correct

66 After becoming the account inoperative

a) ATM will be inactivated b) INB will be inactivated

c) POS Transactions will be inactivated

d) All of these

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67 In inoperative accounts, the following shall not be entitled

a) Immediate credit of cheques drawn on other branches

b) Immediate credit of cheques drawn on bank branches

c) Immediate credit of foreign

currency cheques.

d) All of these

68 Which of the operational risks the bank runs in case of Inoperative accounts?

a) Vulnerability of such accounts to fraud

b) Loss of deposit by transfer to DEAF

c) Threat to customer confidence d) All of these

69 In inoperative accounts the following transaction(s) will not be done

a) Student Scholarships b) Direct Benefit Transfer

c) ATM Transactions d) Electronic Benefit Transfer under Government Schemes

70 The following is/ are to be meticulously followed while activating the inoperative

account

a) Genuineness of the transaction b) Verification of the signature of

the depositor

c) Identity of the customer d) All of these

71 Report of Customer wise list of inoperative accounts will be generated by CDC

on

a) 31st of March b) 30th September

c) 30th June & 31st December d) 31st October

72 Intimation for account become inoperative, depd0000.txt will be generated on

a) Last Friday of every month b) Last day of the Month

c) Last day of the calendar quarter d) 15th of every month.

73 An account will be identified as Unclaimed Deposit Account, when there are no

customer or third party induced transactions for over a period of

a) 2 years b) 5 years

c) 1 year d) 10 years

74 The amount in an unclaimed deposit will be credited to DEAF (Depositor’s Education and Awareness Fund), which will be maintained by

a) RBI b) GOI

c) NABARD d) None of these

75 Additional Air Accident Insurance is not provided to this variant in CSP

a) Silver b) Gold

c) Diamond d) Platinum

76 Periodic Up dation of KYC for existing accounts to be done for low/ medium / high risk categories as under

a) 10/8/2 years respectively b) 10/5/2 years respectively

c) 5/3/2 years respectively. d) None of these

77 The following will be issued to customer if opted for Savings Bank account to be opened with Non Personalised Welcome kit

a) ATM Card & Cheque book (If

customer opts)

b) INB kit

c) Welcome Letter, Z-Card d) All of these.

78 The particulars invariably to be printed on the SB Pass Book are

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a) Contact Particulars of the Branch, Contact Centre, Grievance

Redressal Officer.

b) MICR, IFSC Code and Nomination Number

c) Both A and B d) None of these.

79 The additional incentive of 1% to staff in interest rate will be given if the account opened by staff jointly with

a) Spouse, Son, Unmarried Daughter,

Unmarried Sister, parents.

b) Daughter-in-law, grandson and

grand daughter

c) Monies belong to staff member d) All of these.

80 The additional incentive of 1% to staff in interest rate is also available to HUF Account if

a) The staff member is Karta of a

HUF

b) If staff member is an adult co-

parcener

c) Both A and B d) None of these are correct

81 In case of transfer of SB Account form one branch to other, the following is not correct

a) Request for transfer will be

submitted at either transferor or transferee branch.

b) Any one the depositors may

submit request for transfer in case of E or S or Any one or

Survivor accounts.

c) KYC to be submitted at any of transferee or transferor branch in

case of incomplete KYC.

d) Home branch to be changed by transferor branch for affecting

transfer of the account.

82 At non home branches

a) SB Customers themselves withdraw up to Rs 50,000/-

b) Third party payment up to Rs 5,000/- will be made.

c) A is correct d) Both a and b are correct

83 In BSBD Account, which is not permitted

a) Deposits more than 4 in a month b) KYC Compliancy

c) Withdrawals up to 4 in a month including ATM Transactions

d) Issue of Cheque book

84 In BSBDA-Small account, the following is not permitted

a) Withdrawal and transfers in a month exceeding Rs 10,000/-

b) The balance at any point of time does not exceed Rs 50,000/-

c) The aggregate credit in a year does not exceed Rs 1.00 lakh

d) Account will be opened on submission of simplified KYC

85 No transactions will be permitted in BSBDA-Small account if the KYC documents

are not submitted with in

a) 12 months b) 24 months

c) 6 months d) None of these

86 In minor Savings Bank accounts of Pehla Kadam and Pehli Udaan, the following is/ are not correct.

a) Enquiry Rights will be given in RINB for the both variants

b) Limited transaction rights up to the limit of Rs 5000/- will be

given to both variants

c) Child photo embossed ATM Card will be given in both variants

d) Personalized Cheque Book will be issued to minor in both variants

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87 The following is not correct in case of Term Deposits

a) Issued for a period of 7 days or more

b) Minimum Deposit of Rs 1,000/-

c) No Maximum period. d) Concession in Interest Rates

offered to Senior Citizens.

88 Bulk Deposit means if

a) Term Deposit of less than Rs 1.00 Crore

b) Term Deposit of Rs 1.00 Crore and above

c) Term Deposit of Rs 50.00 Lakhs

and above

d) None of these

89 Term Deposit for more than 120 months (10-years) will be issued incase

a) In the name of the newly born girl child under the Special Scheme of the Government

b) In case of any newly born child.

c) A is correct d) Both a and b are correct.

90 In case of Term deposit issued in joint names under Either or Survivor operating instructions, the following is not correct

a) Payment will be made to any one at maturity.

b) Both signatures to be obtained if paid before maturity.

c) If loan is taken against the security of this, both are to sign the documents.

d) Operating style can be modified at the consent of any one of them.

91 In case of a Term deposit issued in the joint names, the following is not correct

a) Any one or all the depositor’s

name(s) will be deleted, and new names are added during the tenure of the deposit.

b) One depositor must continue till

the maturity of the deposit.

c) Splitting of joint deposits will be made at the request of all depositors provided the term and

amount doesn’t change.

d) The deceased depositor’s name will be substituted with the legal heirs of the deceased.

92 In case of Term Deposit issued in the name of the minor, the following is not

correct

a) Term Deposit will be issued in the sole name if the depositor attained

the age of ten and signs uniformly.

b) Term deposit will be issued up to an amount of Rs 2,00,000/- if

issued in the name of the minor alone.

c) Term deposit will be issued up to an amount of Rs 10,00,000/- if issued jointly with guardian.

d) No undertaking is to be obtained from the guardian if the Term Deposit issued for an amount of

more than Rs 2.00 lakhs

93 The photograph of the illiterate person on Term Deposit will be renewed after

a) 1 year b) 2 years

c) 3 years d) 8 years

94 In case of nomination on Term Deposit, the following is correct

a) Nomination to be given at the time of issuance of Term Deposit and

b) Nomination is to be given at every time, the renewal of the of

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need not be given at every renewal.

Term Deposit.

c) A is correct d) None of these

95 In Savings Plus Account, MOD will be issued for are

a) Rs10000/- & in multiples of Rs 1000/-

b) Rs10000/- & in multiples of Rs 5000/-

c) Rs10000/- & in multiples of Rs 100/-

d) None of these

96 In SBI Flexi Deposit scheme, the minimum Deposit per year and at any one

time are

a) Rs 5000/- & Rs 1,000/- b) Rs 10,000/- & Rs 1,000/-

c) Rs 5000/- & Rs 500/- d) None of these

97 Sundry Loan against the Annuity Deposit will be given

a) 75% of remaining balance amount b) Annuity to be credited to Sundry

Loan

c) Both are correct d) None of these

98 The minimum deposit to be made in MODS is

a) Rs 1,00,000/- b) Rs 10,000/-

c) Rs 1,000/- d) None of these

99 SBI mFAST is

a) Cash Management Service b) SBI General Insurance app

c) App to generate quick token in CEEP

d) None of these

100 SBI Mingle is a/ an

a) Missed Call Banking b) Cash Management Product App

c) Social Banking App d) Multi Facet INB Utility

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Answers to Liability Products

Q 1 2 3 4 5 6 7 8 9 10

ANS C D A C C A D B C C

Q 11 12 13 14 15 16 17 18 19 20

ANS C A C C C D C B D D

Q 21 22 23 24 25 26 27 28 29 30

ANS D D A D D C A B D C

Q 31 32 33 34 35 36 37 38 39 40

ANS A A C B D C D D C D

Q 41 42 43 44 45 46 47 48 49 50

ANS D B A C D D A C D C

Q 51 52 53 54 55 56 57 58 59 60

ANS C D C D D D D C C D

Q 61 62 63 64 65 66 67 68 69 70

ANS D D D B D D D D C D

Q 71 72 73 74 75 76 77 78 79 80

ANS C C D A A A D C D D

Q 81 82 83 84 85 86 87 88 89 90

ANS B C D A B D C B A D

Q 91 92 93 94 95 96 97 98 99 100

ANS A C C C A C C B A C

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Current Account

1 Current account is a form of?

A Time deposit B Demand deposit

C Term deposit D Fixed Deposit

2 In the term ‘CASA’, CA stands for ?

A Current Asset B Current Account

C Cumulative Amount D Cost Amount

3 Which one of the following official cannot authorize a current account opening?

A Branch Manager B Divisional Manager

C Authorised official D None of the above

4 A proprietory firm wants to open current account with our bank. They do not have account with any other bank? Which of the following document is not required to open the ac?

A Proprietor’s ID Proof B Firm’s Address proof

C Undertaking stating that they

donot have any credit facilities with other bank.

D NOC from other banks

5 Immediately on the opening of an account a letter of thanks , is to be

sent to the customer’s address for the following reason?

A Just to say thanks to customer B To get more business

C To ensure that the address is not fake

D None of the above

6 A businessman intends to open a CA , but the signature is in such a

manner that it can be forged easily. What are the available remedies for the branch?

A The branch can open account in

a routine manner.

B The branch can open account

after obtaining undertaking from the applicant, that he will

draw cheque in the presence of an official in the branch.

C The branch can refuse to open

the account

D B & C

7 Who can open a current account?

A Individuals B Firms

C HUF D All of these

8 Which one of the following can open a current account?

A Public limited company B Private limited company

C Trusts D All of these

9 What is the current R.O.I of current account

A No interest is allowed B 3.5%

C 4.5% D None of the above

10 An account is treated as inoperative if there are no customer or third party induced transactions in the last?

A 1 year B 2 years

C 5 years D 10 years

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11 An account is treated as UNCLAIMED Deposit, if there are no customer or third party induced transactions in the last?

A 1 year B 2 years

C 5 years D 10 years

12 Nomination facility is available only to

A Individual accounts B Proprietory concerns

C Limited companies D A & B

13 Nomination in case of current account can be made infavour of how many persons ?

A There is no such restriction B Only one person

C Only two persons D Facility not available for CA

14 Which one of the following is not a form of legal representation?

A Succession Certificate B Letter of Administration

C Family tree D Probate

15 A succession certificate may be granted by a

A A District judge B High court

C Both D None of the above

16 A succession certificate is not applicable to

A Articles in safe deposit B Ornaments pledged

C Both D None of the above

17 A succession certificate is valid

A In the district where it is issued B In the State where it is issued

C All over the country D None of the above

18 To open a current account in the name of a minor, approval is required from?

A No approval is required B Module Head

C Controlling authority D Circle Head

19 A partnership letter should be obtained from the partnership firm at the time of account opening, in the format of

A COS 35 B COS 36

C COS 37 D COS 38

20 A Joint Hindu Family letter should be obtained for HUF account at the

time of account opening, in the format of

A COS 35 B COS 36

C COS 37 D COS 38

21 Bank has to be notified by the HUF every time

A On birth of a new coparcener B On death of a coparcener

C Minor on becoming Major D All the above

22 Which of the following documents to be obtained at the time of account

opening for a Company?

A Memorandum and articles of association

B Certificate of incorporation

C A board resolution to open the account

D All of the above

23 Which of the following documents to be obtained at the time of account opening for a society?

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A Resolution of managing body B Certificate of registration

C Copy of bye-laws D All the above

24 Which of the following documents to be obtained at the time of account opening for a HUF?

A Declaration from karta B Proof of identification of karta

C PAN copy of HUF D All the above

25 Which of the following documents to be obtained at the time of account opening for a Trust?

A Copy of resolution B Trust deed

C Registration certificate D All the above

26 Which of the following documents to be obtained at the time of account

opening for a partnership firm?

A Copy of partnership deed B Partnership letter

C PAN card of the firm D All the above

27 Which of the following documents to be obtained at the time of account opening for a proprietory concern?

A Certificate or license B Pan of the proprietor

C Address proof D All the above

28 Individual accounts where credit or debit summations of Rs 2.00 crores or more per annum are categorized under

A Low risk B Medium risk

C High risk D Either A or C

29 Non-Individual accounts where credit or debit summations of Rs 10.00

crores or more per annum are categorized under

A Low risk B Medium risk

C High risk D Either B or C

30 Individual accounts where credit or debit summations of Rs50.00 lacs to below Rs 2.00 crores per annum are categorized under

A High risk B Medium risk

C Low risk D Either Medium or low

31 Non-Individual accounts where credit or debit summations of Rs 2.00 crores to below Rs.10.00 crores per annum are categorized under

A High risk B Medium risk

C Low risk D Either high or medium

32 Which of the following is not a low risk account?

A Salaried account B BSBDA Small account

C NGO account promoted by UN D None of the above

33 Minimum balance under normal current account?

A Rs.5000/- B Rs.10000/-

C Rs.7500/- D Rs.2500/-

34 For a normal current account penalty for not maintaining minimum balance?

A Rs. 500 per month B Rs. 500 per quarter

C Rs. 1000 per quarter D Rs. 1000 per annum

35 Maximum number of free multi city cheques allowed for a power pack

account?

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A 1000 per month B 750 per month

C 500 per annum D 250 per annum

36 What is the balance to be maintained in a power base current account?

A Rs.20000/- MAB B Rs.20000/- QAB

C Rs.10000/- MAB D Rs.10000/- QAB

37 What is the balance to be maintained in a power gain current account?

A Rs.200000/- MAB B Rs.200000/- QAB

C Rs.100000/- MAB D Rs.100000/- QAB

38 What is the balance to be maintained in a power pack current account?

A Rs.500000/- MAB B Rs.200000/- MAB

C Rs.100000/- QAB D Rs.100000/- MAB

39 What is the maximum amount of cash that can be deposited in home branch for power base account, without any charges?

A Rs.1 lac per month B Rs 1.50 lac per month

C Rs.2.00 lac per month D Rs. 2.50 lac per month

40 What is the maximum amount of cash that can be deposited in home branch for power pack account without any charges?

A Rs. 40 lacs per month B Rs. 60 lacs per month

C Rs. 50 lacs per month D No ceiling

41 What is the maximum of cash that can be deposited in a power pack

current at non-home branch, without any charges?

A RS. 2.00 lacs B Rs. 3.00 lacs

C Rs. 4.00 lacs D Rs. 5.00 lacs

42 What is the maximum amount that a power pack account holder can withdraw at non-home branch , without any charges?

A Rs 1.00 lac B Rs.2.00 lacs

C Rs 3.00 lacs D Rs.5.00 lacs

43 Maximum number of free multi city cheques allowed for a power gain

account?

A 200 per annum B 200 per quarter

C 200 per month D 100 per quarter

44 Maximum number of free multi city cheques allowed for a power Base

account?

A 50 per month B 100 per quarter

C 200 per annum D 200 per month

45 Which are the miscellaneous free services available for a power pack, gain current account holders?

A Demat account B eZ trade

C Salary accounts for employees D All the above

46 SAHAJ account is a variant of

A Savings bank B Term deposit

C SME Loan D Current account

47 What is the maximum withdrawal allowed through ATM for SAHAJ ac?

A Rs. 5000/ per day B Rs. 10000/ per day

C Rs. 15000/ per day D Rs. 20000/ per day

48 Name of the account which facilitates sweep and reverse sweep of

19

balance above a threshold , to term deposit?

A Surabhi B Sahaj

C Jyothi D Sweepbhi

49 Minimum balance of deposit that has to be maintained in CLTD AC?

A Rs. 25000/- B Rs. 50000/-

C Rs. 75000/- D Rs. 100000/-

50 Minimum subsequent deposit amount for current account in CLTD?

A Rs.5000/- B Rs.10000/-

C Rs. 20000/- D Rs.25000/-

51 The current account which facilitates the collection of funds from any branch?

A Power Jyoti B Power Light

C Power collect D Power Pack

52 Minimum deposit to be maintained in a power jyoti account?

A Rs.50000/- QAB B Rs.50000/- MAB

C Rs. 25000/- MAB D Rs.25000/- QAB

53 The product which allows the customer to pre upload MIS data of own?

A Power Jyoti B Power Light

C Power Collect D Power Jyoti (PUL)

54 Unique feature of Power Jyoti (PUL) account?

A It allows the customer to upload MIS data

B It helps customer for reconciliation

C Both the above D Neither

20

ANSWERS:

1 B 21 D

2 B 22 D

3 D 23 D 41 A

4 D 24 D 42 A

5 C 25 D 43 C

6 D 26 D 44 A

7 D 27 D 45 D

8 D 28 C 46 D

9 A 29 C 47 C

10 B 30 B 48 A

11 D 31 B 49 D

12 D 32 D 50 B

13 B 33 B 51 A

14 C 34 B 52 B

15 A 35 A 53 D

16 C 36 A 54 C

17 C 37 A

18 C 38 A

19 C 39 D

20 D 40 B

21

QUESTIONS ON TECHNOLOGY / DIGITAL PRODUCTS

1. The acronym of “CORE' is

a) Centralised Operations Response Engine

b) Centralised Online Real-time Environment

c) Centralised Online Response Environment

d) Centralised Offsite Response team

2. Purpose of B@ncsLink software is:

a) Transaction Software for front office

b) Transaction software for CDC and inter Branch transactions

c) Software for trade finance d) Maintains centralised Database

3. Purpose of B@ncs24 software is

a) Transaction Software for front office

b) Transaction software for CDC and inter branch transaction

c) Software for trade finance d) Maintains centralsied Database

4. B@ncsLink software is procured from

a) Financial Network Services

(FNS) , Australia

b) Comlink, USA

c) China Systems, Taiwan d) Oracle

5. B@ncs24 software is procured from

a) Financial Network Services (FNS) , Australia

b) Comlink, USA


6. Purpose of Finance 1 software is

a) Maintains CGL b) Maintains BGL

c) Maintains Database d) Maintains Trade finance

7. Eximbills is the software for handling trade finance transactions and it is procured from___

a) Financial Network Services (FNS) , Australia

b) Comlink, USA


mailto:B@ncsLink

mailto:B@ncs24

mailto:B@ncsLink

mailto:B@ncs24

22

8. TCS is the technology partner of our Bank and they are responsible for 1. Integration of software

2. Customisation of software 3. Implementation of software,

Which statement is / are correct?

a) Only statement 1 b) Only statement 3

c) Statements 1& 2 d) All the three statements are correct

9. The Disaster recovery site is located at ___ for CBS and INB

a) Chennai b) Hyderabad

c) Bangalore d) Mumbai

10 The Disaster recovery site is located at ___ for ATM

a) Chennai b) Hyderabad

c) Bangalore d) Mumbai

11 Which of the following statement(s) is / are correct with respect to Retail Internet Banking ( Single / joint accounts ) new user registration 1. On receipt of application form from the account holder (s) for INB, Branch can issue

PPK to the applicants either Single or joint accounts. 2. On receipt of application form from the account holders for INB, Branch can issue PPK to joint accounts only.

3. Branch cannot issue PPK to the account holders. 4. On receipt of application form from the account holders for INB, Branch has to select

the “SMS” option in CBS.

a) Statement 1 only b) Statement 2 only

c) Statements 2 & 4 d) Statement 3 & 4 only

12 The service provider for ATM Switch Centre (ASC) is

a) FSS b) NCR

c) AGS d) Prizm

13 State Bank Virtual Card is meant for

a) Cash Withdrawal at ATMs b) Non Home transactions

c) Online purchases d) None of these

14 Maximum period of validity of virtual Card is____

23

a) 10 days b) 24 hours

c) 5 years d) 48 hours

15 Minimum amount for which State Bank Virtual Card can be issued i9s Rs. ___

a) 100/- b) 1000/-

c) 2000/- d) 500/-

16 Maximum amount for which State Bank Virtual Card can be issued is Rs. ___

a) 10000/- b) 25000/-

c) 5000/- d) 50000/-

17 State Bank Virtual Card can be used at

a) India b) Nepal

c) Bhutan d) All of these countries

18 State Bank Virtual Card can be generated through

a) INB b) ATM

c) By applying at home Branch d) By paying cash at Branch

19 Maximum number of transactions that can be done using the State Bank Virtual Card are

a) Only 1 transaction b) 5 transactions in a month

c) 5 transactions in a day d) Any number of transactions

20 For applying shares under ASBA maximum number of applications that can be made from asingle account are:

a) Unlimited b) 5

c) 10 d) 15

21 Mini statement generated through ATM has _____ number of transactions

a) 6 b) 8

c) 10 d) 12

22 Acronym of CVV is _____ in card?

a) Card Verification Value b) Current verification vault

24

c) Current value verification d) None of these

23 The software used for Switch operations at ASC is

a) Base 24 b) B@ncs24

c) Prizm d) None of these

24 Cash in the ATM is part of _____

a) Branch Cash Balance b) ASC cash balance

c) Bank Cash Balance d) None of these

25 Maximum time period for lodging a third party ATM complaint is ___ days

a) 15 b) 90

c) 60 d) 120

26 What is SAN?

a) Short Account Number b) Short Access number

c) Smart Account Number d) Smart Access number

27 Which of the following statements is correct with respect to SAN? SAN is a 6 digit number SAN is a combination of Bank / Branch and account number

SAN is printed on the MICR cheque Book SAN helps in inward clearing file

a) Only Statement 1 is correct b) Only statement 2 & 3 are correct

c) Statement 1 & 4 are correct d) All are correct

28 State Bank Connect uses the technology

a) LAN b) WAN

c) VAN d) None of these

29 Online VVR allotment and checking would be available online in the CBS up to -----------years.

a) 2 b) 3

c) 4 d) 5

30 “Customer One View” gives us the information on corporate’s

mailto:B@ncs24

25

1. Limits & outstanding 2. CMP & trade finance business details

3. Interest and commission income generated

a) Only statement 1 b) Only statement 3

c) Statement 1 & 2 d) All the three statements are correct

31 The regulator for UPI payments is

a) RBI b) GOI

c) SIDBI d) NPCI

32 Which of the following statements is correct with respect to MOPAD ? 1. MOPAD- Multi Option Payment Acceptance Device

2. It is launched by SBI 3. A customer can pay through Cards, Bharat QR, UPI on a PoS terminal

a) Statement 1 only b) Statement 2 & 3

c) Statement 1 & 2 d) All the three statements

33 A customer can be registered for RINB facility by

a) Home Branch only b) Any branch at his convenient

c) Any branch where the customer maintains account

d) None of the above

34 The ceiling for the third party transaction in RINB is ____ per day

a) Rs.20.00 lacs b) Rs.10.00 lacs

c) Rs.15.00 lacs d) Rs.50.00 lacs

35 In order to reset the Login password the customer has the option through

a) Profile password b) ATM

c) Branch Visit d) All the above

36 In order to reset the profile password the customer has to visit

a) Home Branch b) Any Bank Branch

c) On his own d) Any SBI branch

37 Cooling Period for Third Party Transfer through RINB is

26

a) 5 days b) 3 days

c) 2 days d) 4 days

38 The transfer limit under RINB during cooling period is

a) Rs.100000/- b) Rs.1000000/-

c) Rs.50000/- d) Rs.500000/-

39 The customer can transact the following Non- Financial Transactions through INB

a) Add / Manage Biller b) Update eMail Address

c) Register / update Mobile

Number

d) All of the above

40 Quick Transfer option in INB, the registration of the third party would take

a) One hour b) Immediately

c) Without registration d) Four hours

41 To remit through QUICK transfer in RINB the .........of the beneficiary is required

a) Account Number/IFSC b) Mobile number

c) Email ID d) None of these

42 In Quick Transfer the limit per beneficiary per day is

a) Rs.5000.00 b) Rs.10000.00

c) Rs.1000.00 d) Rs.3500.00

43 For NRI customers obtaining_____ is mandatory ( for availing INB)

a) Mobile Number b) eMail

c) Either A or B d) Both A and B

44 What is the cut off time for creating e-TDR / e-STDR online banking?

a) 24 hrs without any restriction on timing

b) 6.00 AM IST to 6.00 PM IST

c) 8.00 AM IST to 8.00 PM IST d) None

45 e-Invest is a

a) SBI's mobile application B A variant of CINB

27

c) ASBA D None of these

46 Normally, a new user registered for INB gets activated within ....

a) Immediately b) One day

c) One hour d) Four hours

47 How many third party accounts can be added in a single day in RINB in each category ?

a) 2 b) 1

c) Unlimited d) 3

48 How many times third party funds transfer can be effected in a single day using SBI Online Banking facility

a) 3 Times with a ceiling of 5 lakhs b) Any number of Transactions in a day within

the limit

c) No limit on Transaction d) None

49 Maximum amount that can be transferred in a day to own accounts with RINB is ____

a) Rs.2,00,00,000/- B Rs.20,00,000/-

c) Rs.10,00,000/- D Rs.2,000 crores

50 RINB site is certified by Verisign as a secure and trusted site. All information sent or

received in this site is encrypted using ____-bit encryption

a) 128 B 256

c) 64 D 32

51 The facility of online OD in INB is not available on the under mentioned kind of deposits

a) NRE/NRO b) MOD

c) FCNR(B) d) All of the above

52 The margin against e-TDR is____

a) 15 b) 10

c) 25 d) 20

53 The margin against e-STDR

a) 15 b) 10

28

c) 5 d) NIL

54 The minimum loan in online OD is

a) 20000 b) 30000

c) 25000 d) 10000

55 The maximum loan amount in online OD is

a) No limit b) 10 cr

c) 50 cr d) 5 cr

56 Minimum residual period of TDR/STDR/ eTDR/ eSTDR should be ..... months at the time of availing Loan

a) 6 b) 3

c) 12 d) None of these

57 Repayment for STDR/eSTDR is.... years or remaining maturity period of Fixed Deposit, whichever is lower

a) 3 b) 4

c) 8 d) 5

58 Online OD available to customers having Fixed Deposits in........... name

a) Single b) Joint

c) Both available d) None of these

59 The closure of OD account on maturity or end of term of TDR/STDR/eTDR/ eSTDR will be done by the.........

a) any Branch b) Customer by online

c) Either (a) or (b) d) None of these

60 The online opening of Overdraft facility will be available between

a) 07:00 HRS IST and 19:00 HRS IST

b) 08:00 HRS IST and 20:00 HRS IST

c) 09:00 HRS IST and 21:00 HRS IST

d) 08:00 HRS IST and 18:00 HRS IST

29

61 __________ is an OTP generation App for Internet Banking transactions (INB), performed through OnlineSbi and State Bank Anywhere App, which can be downloaded

from Google Play Store and IOS App Store.

a) State Bank Secure OTP b) State Bank Suraksha OTP

c) State Bank Simple OTP d) State Bank Saral OTP

62 An INB user with ................ rights can use the State Bank Secure OTP application

a) Enquiry b) Transaction

c) Limited transaction d) All of these

63 The process of conversion of plain text to cipher text using certain logic is

a) Encryption b) Decryption

c) Conversion d) None of these

64 A unit of information that corresponds to character in technology is called as

a) Byte b) Log

c) Bit d) None of these

65 GPRS stands for

a) General Packet Radio Service b) General packet Reuter Service

c) General Packet Radio System d) General Packet Reuter System

66 ADS stands for

a) Active Directory System b) Active Dialing Service

c) Active Directory Service d) Active Dialing System

67 Eligibility criteria for providing RINB is

a) All “Per” Segment customers b) Literate Customers

c) Full KYC accounts d) All of these

68 Which types of accounts are eligible for RINB ?

a) NRE Accounts b) More than 18 yrs old customers

c) PMJDY accounts d) All of these

69 Number of beneficiaries that can be added in RINB are______

30

a) Intra Bank – 3 Inter Bank – 3

IMPS- 3

b) Intra Bank – 1 Inter Bank – 1

IMPS- 1

c) Only One beneficiary per day d) None of these

70 While the new customer is registering on line through “New User Registration” , in how many ways one can complete the registration ?

a) 1 b) 2


71 While providing RINB to NRI customers, one of the modes of delivery of PP Kit is through eMail. In this case the User Name will be delivered to the NRI customer by way

of

a) SMS b) Email

c) Post d) None of these

72 While providing RINB to NRI customers, one of the modes of delivery of PP Kit is through eMail. In this case the Temporary Password will be delivered to the NRI customer by way of

a) SMS b) Email


73 While providing RINB to NRI customers, one of the modes of delivery of PP Kit is

through eMail. In this case the Activation Code will be delivered to the NRI customer by way of

a) SMS b) Email


74 While providing RINB to NRI customers, one of the modes of delivery of PP Kit is through eMail. In this case the Activation Code will be delivered to the NRI customer is

valid for a period of _____ days.

a) 2 b) 7

c) 15 d) 5

75 M-Passbook is part of _____

a) Anywhere Personel b) Is a separate App

c) Can be activated by the Branch d) None of these

31

76 Using State Bank Anywhere Personal a user can transfer funds using the Quick transfer using

a) QR code b) Without QR Code


77 Using State Bank Anywhere Personal, a customer can transfer to his / her own accounts in a day is Rs.____

a) 2,00,00,000/- b) 10,00,000/-

c) 99,99,999/- d) None of these

78 Using State Bank Anywhere Personal, a customer can transfer under IMPS in a day is Rs.____

a) 2,00,000/- b) 10,00,000/-

c) 2,00,00,000/- d) None of these

79 The limits of m Cash are:

Per Txn Rs._____; Per Day Rs._______; Per Month Rs. ______.

a) 1,101/-; 2,202/- ; 5,101/-. b) 1,101/- ; 2,202/-; 10,010/-.

c) 1,101/- ; 2,202/- ; 5,105/-. d) 1,101/- ; 5,101/- ; 10,110/-.

80 The Passcode under State Bank mCash contains ___ digits

a) 4 b) 6

c) 7 d) 8

81 The transactions that are posted through INB are categorised as____

a) Straight though processing

transactions

b) Manual intervention transactions

c) Either (a) or (b) d) Neither (a) not (b)

82 What is the maximum limit under ASBA for individual category of investor in online

banking can apply?

a) Rs. 2.00 lacs b) Rs. 2.50 lacs

c) Rs. 10.00 lacs d) Rs. 5.00 lacs

83 Using INB a customer care create a new eTDR /eSTDR in the name of _____

a) As per his choice b) As the name in the debit account

32


84 Mr. A wants to open a SB account through online and how many co applicants he have

in that account?

a) Co-applicants are not permitted b) Only one co-applicant

c) Maximum three co-applicants d) None of these

85 Virtual card works on

a) Visa b) Maestro

c) Rupay d) None of these

86 Acronym for PPK is

a) Pre-Printed Kit b) Pre-Processed Kit

c) Pre-Projected Kit d) Personal Printed Kit

87 CINB can be provided to

a) Individual customers b) Corporate customers

c) A & B d) None

88 Which category of branches of SBI can provide CINB facility?

a) Rural b) Semi Urban

c) Urban & Metro only d) All the above

89 CINB Saral is a ---------product and it is issued in _____

a) Single user; CBS b) Multiple user; Branch Interface

c) Enquiry rights only, CBS d) Any number of users, CBS

90 The highest variant in our Corporate Internet Banking is

a) Khata (Advantage) b) Khata (advantage) Plus

c) Vyapar (Privilege) d) Vistaar (Freedom)

91 Which type of CINB facility provides for enquiry rights only on all accounts across

branches

a) Vyapaar b) Vistaar

c) Khata Plus d) Khata

33

92 One of the following is not a feature of the facilities available under CINB

a) e-payments/e-receipts to and

from registered users

b) Bulk upload facility

c) No check on access control and

access rights

d) Multiple level controls

93 Vyapaar can be upgraded to

a) Khata b) Khata plus

c) Vistaar d) Cannot be upgraded

94 The following facilities are available for users available Khata

a) Enquiry of Account B Downloading of statements

c) Only A D Both A and B

95 Which of the following is true with regard to access in Khata Plus

a) Only one user can be allowed to access

B Multiple users are allowed

c) No user is allowed D None of these

96 Bulk Upload facility is available in

a) Khata Plus B Vistaar only

c) Vyapaar and Vistaar D Saral Only

97 Registration of Khata Plus/Vyapaar/Vistaar is carried out in

a) Branch Interface B CBS and Branch Interface both

c) CBS D None

98 How many Administrators can a corporate, enjoying Vistaar, have?

a) One B Two

c) As many Administrators as the Corporate desires. i.e depends

on the accounts

D None of the above

99 Pre printed kits issued to Regulator/Administrator/User are issued by

a) Auditor B Regulator

34

c) INB Officer D Rule Authoriser

100 The administrator of the corporate prints the following form for getting the PPKs of

other corporate users issued from the branch

a) Form C1 b) Form C5

c) Form C7 d) Form C6

101 ______________is the form used for registering the Corporate

a) C1 B C2

c) C3 D C4

102 ________________form is used for registering the Administrator

a) C1 B C2

c) C3 D C4

103 _____________form is used for registering the Regulator

a) C1 b) C2

c) C3 d) C4

104 In Vistaar, files can be uploaded using ____________________based security.

a) MKI(DIGITAL Signature) B PKI(DIGITAL Signature)

c) XYZ password D ABC User ID

105 The access channel that is set for a khata user in CBS is

a) 01 b) 02

c) 04 d) 09

106 The minimum number of INB officers for a Branch is

a) ONE B TWO

c) THREE D FOUR

107 The CINB-Saral user will be able to transfer an amount not exceeding in the

aggregate…………..to the newly added beneficiary during the first 4 days after activation (by user)

a) Rs 50000/- b) Rs 500000/-

35

c) Rs 100000/- d) No restriction

108 Administrator is a ______ user in CINB

a) Branch user B Corporate user

c) Either of the above D None of these

109 Corporate Uploader can view the configuration done by

a) Administrator only B Administrator / Regulator

c) Maker D Checker

110 User Management & Access to Accounts of Corporate is managed

a) At Home branch by INB Officer B At Home Branch by Rule Authoriser

c) At Corporate level (through

Administrator)

D At Corporate level (through Regulator)

111 e-Cheques can be created by

a) Maker B Regulator

c) Approver D Auditor

112 The Optional Role for a Corporate User in Vistaar is

a) Regulator B Administrator

c) Approver D Authoriser

113 In Vistaar, Single transaction limit of Rs._________ is allowed for third party transfers

a) 10 lacs B 50 lacs

c) 500 lacs D 2,000 crores

114 Which is of the following is a complete financial solution for Corporates, which are large and very large organizations

a) Vyapaar B Vistaar

c) Khata Plus D Saral

115 New users within the corporate can be created by

a) Uploader B Administrator

c) Rule Authoriser D Maker

36

116 Bulk Upload through file mode can be done by

a) Administrator B Regulator

c) Uploader D Maker

117 Supplier Payment Module is a

a) Push Mode of Collection B Pull Mode of Collection

c) Drag mode of collection D Extended Mode of Collection

118 The E-Tax limit per transaction in the case of Vistaar is

a) Rs 500.00 lacs b) Rs 2,000.00 crs

c) Rs 10,000.00 crs d) Un limited

119 INB Maker is a

a) Branch user B Corporate user

c) Either of the above D None of the above

120 Internet Banking Department has developed a generic e-payment module named as SB

Collect for CINB customers for

a) Collecting the funds from the receiver of goods/ services

b) Forex services for CINB customers

c) Loan Repayments through CINB d) Tax payments

121 An Uploader created by Regulator can upload files pertaining to

a) Uploader cannot be created by

Regulator

B Any account which the Regulator has control

c) The account for which the

Admin is the controller

D None of these

122 Which of the following is not true with regard to access in Vyapaar

a) Vyapaar is multi user variant B multiple accounts can be accessed through

Vyapaar

c) Only View rights are provided in Vyapaar

D Drafts can also be issued using Vyapaar variant

123 Corporate Internet Banking

a) Provides for both single and B Provides single authorization only

37

dual authorization(Maker-Checker Concept)

c) Provides for single access D Does not provide for dual authorization

124 Transaction Limit refers to

a) No individual transaction limits prescribed for the product

b) Limit on aggregate value of transactions in a day, and no individual transaction limits prescribed for the product

c) Limit on aggregate value of transactions in a day

d) No limit on aggregate value of transactions in a day, but individual transaction limits prescribed for the product

125 Which of the following are not the features of Khata Plus

a) Multiple accounts B Multiple Branches

c) Enquiry Rights D Cannot be upgraded

126 Audit tolerance limits for the Corporate is set up by

a) Administrator b) Authoriser

c) Rule Authoriser d) Regulator

127 mCash facility is provided to customers through

a) INB b) MBS

c) ATM d) Branch

128 To remit through mCash the customer requires...... of the beneficiary

a) Mobile Number b) E-Mail ID

c) Either A or B d) None , account number is required

129 Maximum amount of money that can be remitted per transaction by mCash is

a) Rs.1000.00 b) Rs.1101.00

c) Rs.100.00 d) Rs.500.00

130 The charges under mCash per transaction is

a) Rs.3.00 b) Rs.1.00

c) Rs.2.50 d) nil

38

131 The maximum amount of money that can be remitted in mCash in a month is

a) Rs.1000.00 b) Rs.10000.00

c) Rs.50000.00 d) Rs.5101.00

132 Maximum amount of money that can be remitted per day by mCash is

a) Rs.2202.00 b) Rs.3303.00

c) Rs.11001.00 d) Rs.5505.00

133 Money can be send through mCash to................ Bank

a) Within SBI b) Within SB Group

c) Any Bank d) None of these

134 The passcode generated in mCash to claim money by the beneficiary is valid upto

a) 2 days b) 5 days

c) 3 days d) 7 days

135 The beneficiary to claim money through mCash is required to have

a) Account with SBI b) Account in SBI with INB

c) Any Bank account d) Any Bank account with INB

136 The beneficiary can claim money in mCash by logging into

a) Pre-login of Online SBI b) State Bank mCash Mobile App

c) Both A and B d) Either A or B

137 RBI has advised to issue EMV Chip based and PIN based cards w.e.f______

a) 01/09/15 b) 01/01/16

c) 01/01/17 d) None of these

138 Which of the following is true w r t White label ATMs

1. These ATMs are owned by third parties ( other than Banks ) 2. These ATMs are operated by the third parties 3. Bank's pay charges to the third parties

4. The charges are based on the usage of the ATMs by the Banks

a) Only statements 1,2 & 3 are correct

b) Only statements 2 & 3 are correct

39

c) Only statements 1,3 & 4 are correct

d) All the statements are correct

139 EMV stands for _______

a) European Master Value b) Euro Pay, Master & Visa

c) Electronic Master Value d) None of these

140 NFS (National Financial Switch ) network is managed by _______

a) RBI b) NIBM

c) IDRBT d) NPCI

141 Which of the following complaints can be raised through CMS ? 1. Account debited but cash not disbursed ( at ATM )

2. Account debited but POS receipt / acknowledgment not received at the merchant establishment

3. Account debited but receipt is not generated while payment through INB

4. ATM card lost

a) Statement 1, 2 & 3 b) Statement 1 & 2

c) Statement 1 & 3 d) Only statement 4 is correct

142 Bank has established Contact Centers at Bangalore and Baroda. These are operated by

a) M/s. TCS Ltd b) M/s. Infosys

c) M/s Mphasis d) NPCI

143 The customer has to enter his PIN in the ATM within ____ seconds.

a) 10 b) 20

c) 30 d) 40

144 India’s talking ATM was installed at _______ for the first time.

a) Mumbai b) Bangalore

c) Ahmedabad d) Hyderabad

145 Which of the following statements is true with respect to Brown Label ATMs 1. ATMS are owned by a service provider

2. Cash Management is by the Bank 3. Connectivity by Sponsoring Bank's Network

a) Statement 1 & 3 only b) Statement 1 & 2 only

40

c) Statement 3 only d) All the three statements

146 Which of the following statements are correct with respect to issuance of ATM card 1. A Minor cannot be issued with an ATM card

2. A Minor if he is having an account individually he can be issued an ATM Card 3. Minor Accounts with Pehala Kadam / Pehala Udaan can be issued with an ATM

card

a) Only Statement 1 is correct b) Only Statement 2 is correct

c) Statement 1 & 2 are correct d) Statement 1 & 3 are correct.

147 The cash can be deposited into CDM using which of these cards

a) SBI ATM cum Debit Card b) SME Insta Deposit Card

c) Green Remit card d) All of the above

148 What is the maximum number of times a customer can make deposits through CDM in a day?

a) 3 b) 5

c) Unlimited d) 2

149 The maximum number of currency notes that can be deposited in CDM

a) 100 b) 200

c) 300 d) 150

150 The single transaction limit for can deposit in CDM is

a) Rs.49000.00 b) Rs.50000.00

c) Rs.49900.00 d) Rs.25000.00

151 CDM accepts the under mentioned currency notes for deposit of cash

a) Rs.500.00 b) Rs.100.00

c) Rs.2000.00 d) All the above

152 Cash can be deposited in our CDM of customer having

a) SBI accounts only b) SBI and all PSB a/c holders only

c) All Banks a/c holders d) none of the above

41

153 Cash can be deposited in CDM for the below mentioned types of accounts

a) SB b) CA / OD

c) CC d) All the above

154 One can deposit cash in CDM using the

a) With GRC b) With ATM Card

c) Without card d) Any of A or B or C

155 The ceiling for single transaction through GRC card for remitting cash is

a) Rs.50000.00 b) Rs.100000.00

c) Rs.25000.00 d) Rs.15000.00

156 The amount a customer can remit through GRC card in month is

a) Rs.100000.00 b) Rs.25000.00

c) Rs.50000.00 d) Unlimited

157 In a GRC transaction, who will receive SMS for successful transaction

a) SWO operator b) Remitter

c) Beneficiary d) Both b & c

158 Which cards can be used in GCC

a) SME Insta Deposit Card b) Green Remit card

c) SBI ATM Debit card d) All of the above

159 What is the minimum and maximum amount for which Gift card can be issued

a) Rs.1000/- and Rs.50000/- b) Rs.100/- and Rs.50000/-

c) Rs.500/ - and Rs.50,000/- d) Rs.1000/- and Rs.100000/-

160 ACHIEVER card can be issued to

a) SBI employees b) Corporate employees / agents

c) a and b d) None of these

161 Validity period of ACHIEVER card

a) 1 year b) 3 years

42

c) 10 years d) 5 yerars

162 Validity period of Gift card

a) 1 year or Balance exhausted whichever is earlier

b) 2 years or Balance exhausted whichever is earlier

c) 6 Months or Balance exhausted whichever is earlier

d) None of these

163 Maximum amount of issue for ACHIEVER card

a) Rs.50,000/- b) Rs.25,000/-

c) Rs.1 lakh d) Rs.10,000/-

164 State Bank Anywhere – Saral to SME customers provided with

a) Enquiry rights b) Transaction rights

c) Both a & b d) No service to SME customers

165 State Bank Anywhere – Saral to SME customers can be given to which accounts

a) Current Account without OD b) Cash Credit account

c) Current Account with OD d) All of the above

166 State Bank Achiever Card is a type of

a) Reloadable Card b) Prepaid card

c) Debit card d) Both a & b

167 Our Bank is installing Barcode based Passbook Printing Kiosks at its various branches. Branches which are carrying high number of passbook printing transactions have been identified for installations of these Kiosks. These Kiosks are

branded as_____________

a) SWAYAM B SAKSHAM

c) SAYAM D NONE

168 For mapping of customer’s account number to bar code sticker number which of the following is CBS screen no.

a) 007103 B 007105

c) 7104 D 7102

43

169 How many languages are enabled presently for Bar code printing

a) 11 B 10

c) 12 D 18

170 Facility introduced by Bank to provide convenient, cost effective and prompt basic

banking services in relation to balance enquiry

a) SBI FAST b) SBI JALDI

c) SBI QUICK d) SBI SURE

171 The customer can give a Missed call or SMS ‘BAL’ to 09223766666 from the registered Mobile Number to know the balance in the account per day .....

a) Once b) Thrice

c) Five d) Unlimited

172 The Charges debited by Bank under SBI QUICK for Balance enquiry and statement enquiry are

a) Nil b) Rs.5 and Rs.10

c) Rs.7 and Rs.14 d) Rs.2 and Rs.5

173 Virtual card can be generated in

a) Mobile Banking (SMS) b) Mobile Banking (Application)

c) RINB d) B & C

174 Internet service provider for internet banking of SBI is

a) M/s Tech Mahindra b) Infosys

c) TCS d) M/s Microsoft

175 With respect to CINB, the new user registration and re-issue of login password can

be completed through

a) Issue of PPKit at Branch b) Issue of Pin Mailers

c) SMS d) None of these

176 In RTGS transaction the type R-42 refers to

a) Bank To Bank b) Bank to Customer

44

c) Customer to Customer d) Customer to Bank

177 Translink software is used by the branches / offices

a) Handling Western Union remittances

b) handling treasury operations

c) Handling forex transactions d) handling CMP transactions

178 Transaction rights under MBS are enabled for the following customers

a) Personal Customers b) Partnership firms

c) Public/Private Limited cos. d) All a,b,c

179 Finacle software is procured from _____

a) Infosys b) TCS

c) Comlink, USA d) HCL, UK

180 Corporate General Ledger – Finance One is procured by

a) SATYAM/MAHINDRA, INIDA b) ACCENTURE LTD, LONDON

c) COMLINK,USA d) SIFY SOLUTIONS, JAPAN

181 State Bank Vishwa Yatra Foreign travel card is issued in ....currencies

a) 9 b) 15

c) 5 d) 8

182 Nodal Branch for the entire Bank to handle NACH Debit and Credit transactions is

a) CCPC, Hyderabad b) CCPC, Chennai

c) CCPC, Mumbai d) CPC, Bengaluru

183 The maximum limit per transaction in Western Union money transfer is

a) USD 2000 b) USD 3000

c) USD 1500 d) USD 2500

184 The maximum number of transaction beneficiary can receive in Western Union

money transfer is

a) Unlimited b) 50

c) 45 d) 30

45

185 The nodal branch for handling Western Union Money Transfer is

a) Mumbai Main b) NRI Mumbai

c) NRI Kochi d) New Delhi main

186 IFSC

a) Indian Financial System Code b) Indian Financial Service Code

c) Indian Financial Solutions Code d) Indian Financial System Circular

187 Which of the following statements is / are correct with respect to issue of debit

cards to illiterates 1. Only RuPay card can be issued

2. Account should be opened under Financial Inclusion

a) Only Statement 1 is correct b) Only statement 2 is correct

c) Both the statements are correct d) Neither of the statements is correct

188 Contact less card works on

a) Master Card PayPass b) Visa PayWave

c) Either (a) or (b) d) Both (a) and (b)

189 Signature card is issued to

a) Ultra HNIs b) PMJDY account holders

c) BSBDA accounts d) FI accounts

190 Which ATM variant is to be issued non- personal customers

a) Gold b) Premium

c) Platinum d) Signature

191 Among all the variants of ATM cards issued by SBI which variant has highest PoS limit per day

a) Gold b) Premium

c) Platinum d) Signature

192 In how many ways a PIN for ATM card can be generated

a) 3 b) 4

c) 5 d) 2

46

193 PAI is offered by _____ to ___RuPay Debit Cards

a) GIC; SBI b) NPCI; SBI

c) SBI General ; SBI d) LIC; SBI

194 Maximum insurance cover is available to ______ variant of RuPay cards

a) Global b) Classic

c) Platinum d) Basic

195 To be eligible for claiming PAI ( Non Air – Death only) the depositor should have used the Card on any channel POs / eCom / ATM during the last ____ days

a) 45 b) 30

c) 60 d) 90

196 Personal Accident Insurance (Death) cover and Air Accident Insurance (Death)cover

for Salary account holders is provided by _____ Insurance company

a) IFFCO Tokio General Insurance Company Limited

b) GIC

c) SBI General Insurance Company d) None of these

197 Which of the following statements is / are true with respect to issuance of ATM card NRIs

1.It is a Non personalised ATM card within the PPK 2.This ATM card is issued on NRE SB accounts 3.Validity period of the card is 5 years

a) Statements 2 & 3 are correct b) Only statement 1 correct

c) Only statement 2 is correct d) All the Statements are correct

198 AEPS is offered by

a) RBI b) IDRBT

c) NPCI d) NIBM

199 To transfer funds using AEPS beneficiary's ______ and beneficiary bank's ____ are

required

a) Aadhar Number, IIN b) Aadhar Number; IFSC code

47

c) PAN number, IFSC code d) None of these

200 Requirements for activation of SBI Pay

1. Bank Account with mobile number 2. Smart phone (with internet connection).

3. Debit card for setting MPIN

a) Statement 1 & 2 b) Statement 3 only

c) Statement 2 & 3 d) All the three statements

201 BHIM is launched by _____

a) RBI b) GOI

c) IDRBT d) NPCI

202 USSD works on

a) Smart phone only b) Basic Phone or smart phone

c) Any phone with Internet

connectivity

d) None of these

203 RBI has permitted relaxation for Additional Factor of Authentication (AFA) for transactions upto Rs. ____

a) 1000/- b) 2000/-

c) No relaxation d) 5000/-

204 While making payment using the dynamic QR code the purchaser needs to enter

the

a) Amount only and confirms b) Amount and merchant details and

confirms

c) Only merchant details and confirms

d) Nothing needs to be entered depositor needs to confirm only

205 The transaction limits under Bharat QR are Rs. ____ per day and Rs. ____ per user

a) 10,000; 25,000 b) 10,000; 50,000

c) 50,000; 100,000 d) 50,000; 50,000

206 SBI Mingle is

a) Social banking application b) UPI based application

48

c) AEPS based application d) QR code based application

207 Technology partner for SBI Mingle is

a) TCS Ltd b) Mphasis Ltd

c) Infosys d) NPCI

208 With SB MOPS a customer can receive payments through

a) Debit / Credit Cards b) Debit /Credit Cards & INB

c) UPI d) All of these

209 SBI ePay is

a) A mobile application b) Variant of INB

c) Payment aggregator service d) None of these

210 A customer availing the facility of SB collect can generate various reports from

a) CDC, Belapur b) CINB

c) GITC d) From the customers only

49

ANSWERS

1 B 2 A 3 B 4 A 5 A 6 A 7 C 8 D 9 A 10 B

11 D 12 A 13 C 14 D 15 A 16 D 17 D 18 A 19 A 20 B

21 C 22 A 23 A 24 A 25 D 26 A 27 D 28 B 29 B 30 D

31 D 32 D 33 B 34 B 35 D 36 D 37 D 38 D 39 D 40 C

41 A 42 B 43 D 44 C 45 C 46 D 47 D 48 B 49 A 50 B

51 D 52 C 53 B 54 C 55 D 56 A 57 D 58 A 59 C 60 B

61 A 62 D 63 A 64 C 65 A 66 C 67 D 68 D 69 A 70 B

71 A 72 B 73 B 74 B 75 A 76 C 77 A 78 A 79 A 80 D

81 C 82 A 83 B 84 C 85 A 86 A 87 B 88 D 89 A 90 D

91 C 92 C 93 C 94 D 95 B 96 C 97 A 98 C 99 C 100 C

101 A 102 C 103 B 104 B 105 D 106 A 107 B 108 B 109 B 110 C

111 A 112 C 113 D 114 B 115 B 116 C 117 A 118 C 119 A 120 A

121 B 122 C 123 A 124 D 125 D 126 D 127 A 128 C 129 B 130 C

131 D 132 A 133 C 134 B 135 C 136 D 137 B 138 D 139 B 140 D

141 A 142 C 143 B 144 C 145 D 146 D 147 D 148 C 149 B 150 C

151 D 152 A 153 D 154 D 155 C 156 A 157 D 158 D 159 C 160 C

161 C 162 A 163 A 164 B 165 D 166 D 167 A 168 C 169 B 170 C

171 D 172 A 173 D 174 A 175 C 176 A 177 A 178 D 179 A 180 C

181 C 182 C 183 D 184 D 185 C 186 A 187 B 188 D 189 A 190 B

191 B 192 C 193 B 194 C 195 D 196 A 197 D 198 C 199 A 200 D

201 D 202 B 203 B 204 D 205 D 206 A 207 A 208 D 209 C 210 B

50

GOVERNMENT DEPOSIT SCHEMES

1 Senior Citizens Savings Scheme (SCSS),2004 is a product introduced by ___?

a) Government of India b) Reserve Bank of India

c) State Bank of India d) None of these

2 What is the form to be used for making deposit under Senior citizen savings

scheme (SCSS)2004 ?

a) Form A b) Form B

c) Form C d) Form E

3 Deposit under SCSS,2004 can be made as ____?

a) Single only b) Joint deposit only

c) Single or Jointly with spouse. d) None of these

4 What is the maximum amount of deposit that can be made under SCSS, 2004

a) Rs.10 lacs b) Rs.15 Lacs

c) Rs.20 Lacs d) Rs.25 Lacs

5 Who will decide rate of interest for deposits under SCSS,2004 ?

a) Reserve Bank of India b) Ministry of Finance, Government of

India

c) As decided by Individual Bank’s board

d) None of these

6 Deposit under SCSS,2004 should be made in multiples of ?

a) Hundreds b) Thousands

c) Lakh d) None of these

7 Can a Joint deposit be opened Under SCSS,2004 ?

a) No. Only Single deposit b) Yes. Joint deposit can be made

along with any other person

c) Yes. But only with spouse d) None of these

8 Which of the following are correct regarding eligibility for opening of account under SCSS,2004 ?

a) An individual, who attained age of

60 years and above can open the account.

b) An individual who is having age

between 55 to 60 and retired on superannuation or otherwise or retired before commencement of

the scheme rules.

c) The retired personnel of Defence

Services (excluding civil defence employees) irrespective of age limits.

d) All of These

9 Who are ineligible to open deposits under SCSS, 2004 ?

a) Non Individuals b) Non Resident Indian (NRI)

c) Hindu United Family (HUF) d) All of these

10 The depositor may extend / renew the SCSS deposit account for a further period of three years after the maturity period of five years provided _____?

a) An application in Form A should be b) An application in Form B should be

51

made within a period of one year after the date of maturity period.

made within a period of one year after the date of maturity period.

c) Cannot be extended / renewed further

d) None of these

11 What is the periodicity of Interest payment for deposits under SCSS,2004?

a) 31st March / 30th June / 30th

September /31st December b) Yearly on 31 st March

c) Half Yearly on 30th Sep / 31st March

d) None of these

12 In respect of SCSS deposits, the depositor may nominate a person or more than one person, at the time of opening of the account or at any time after the opening of the account but before its closure, by an application on _________

accompanied by the passbook to the Branch.

a) Form A b) Form B

c) Form C d) Form E

13 What is the form to be used for payment / pre mature closure of deposit under SCSS,2004?

a) Form A b) Form B

c) Form C d) Form E

14 What is the rate of interest payable for SCSS deposits, which are neither closed nor extended on maturity?

a) At the rate applicable to the

deposits under the Post office Savings Bank account .

b) As per respective Savings Bank interest rate.

c) As announced from time to time by Finance department, GOI

d) None of these

15 What is the form to be used for payment of SCSS deposit to legal heirs / nominee

in respect of deceased person’s deposits ?

a) Form A b) Form B

c) Form C d) Form F

16 What is the penalty to be levied for SCSS deposits closed after the expiry of one

year but before the expiry of two years from the date of opening of the deposit ?

a) One percent of the deposit b) One and Half percent of the deposit

c) Two percent of the deposit d) None of these

17 What is the penalty to be levied for SCSS deposits closed after the expiry of two

years from the date of opening of the deposit?

a) One percent of the deposit b) One and Half percent of the deposit

c) Two percent of the deposit d) None of these

18 Which of the following are correct in respect of TDS recovery for deposits made

under SCSS,2004?

a) TDS is not applicable b) TDS is applicable. However Form

15G/H can be submitted for

exemption of TDS recovery.

c) TDS cannot be exempted d) None of these

52

19 Which of the following are eligible to open Public Provident Fund (PPF) account ?

a) Individual b) Individual on behalf of minor

c) a and b d) HUF

20 What is the minimum and maximum annual subscription for PPF account?

a) Minimum Rs.250.00 and Maximum Rs.1.50 Lacs

b) Minimum Rs.500.00 and Maximum Rs.1.50 Lacs

c) Minimum Rs.250.00 and Maximum Rs.1.00 Lacs

d) Minimum Rs.500.00 and Maximum Rs.1.00 Lacs

21 Which of the following are correct regarding excess subscription to PPF a/c?

a) Interest will be period as per

applicable interest

b) Interest for excess amount will be

paid at the time of maturity.

c) The excess amount will neither earn interest not will be eligible

for rebate under Income tax act.

d) None of these.

22 What is the maximum number of installments / subscriptions for PPF account within a year ?

a) 12 b) 15

c) 18 d) 24

23 What is the maximum duration for PPF account ?

a) 10 years, which can be extended

for 1 or more blocks of 3 years each

b) 15 years, which can be extended


c) 10 years, which can be extended


d) 15 years, which can be extended


24 Which of the following are correct in respect of interest payment for PPF

accounts?

a) Interest will be paid Half yearly b) Interest will be paid on 31 st

March every year

c) Interest will be paid on the minimum balance between 5th day

and end of the month

d) B and C are correct

25 Which of the following are correct regarding withdrawals from PPF a/c?

a) Eligible amount of withdrawal: 50 % of the total balance at the end of the 4th year, counting back

from the year of withdrawal.

b) Eligible amount of withdrawal: 50% of the total balance at the end of the year before the year of

withdrawal.

c) The scheme permits partial withdrawal from 7th financial year

i.e on completing 6 years. Withdrawals can be made only

once in a financial year. Eligible amount is lower of (a) and (b)

d) None of these

26 Which of the following are correct with respect to tax benefits under PPF a/c ?

a) Income tax benefits are available under sec 80 C of IT act

b) Interest income is totally exempt from Income tax

53

c) Amount outstanding to the credit is fully exempted from wealth tax

d) All of these

27 How many nominees can be accepted for PPF account ?

a) Only one b) One or more with equal

percentage of share

c) One or more persons. Shares of nominees may also be defined by

the subscriber

d) None of these

28 Is PPF account transferable ?

a) No. b) Yes. But transferable among own branches upon request by the subscriber.

c) Yes. PPF account can be transferred to other branches /

other banks or post offices and vice versa upon request by the subscriber

d) None of these.

29 How many PPF accounts can be opened by an individual ?

a) Only one b) Two accounts

c) One account. However another account on behalf of each minor child for whom he / she is a

guardian.

d) None of these

30 Can a PPF account holder close the account by premature closer ?

a) No b) Yes in the event of death of the

depositor

c) Yes in case of extreme

compassionate grounds to be authorized by an order by the central governement

d) b and c

31 What is penalty amount for revival of PPF account which is in default ?

a) Rs.20/- per year along with

minimum specified amount per year.

b) Rs.50/- per year along with


c) Rs.70/- per year along with


d) Rs.100/- per year along with


32 What is the campaign name for “ Sukanya Samriddhi account “

a) “Pehla Khadam / Pehli udaan b) Beti Bachao Beti Padhao

c) Beti Padhao Beti Bachao d) None of these

33 What is the minimum and maximum amount of deposit for “ Sukanya Samriddhi Account “ ?

a) Minimum Rs.500/- and Maximum Rs.1,50,000/-

b) Minimum Rs.250/- and Maximum Rs.1,50,000/-

c) Minimum Rs.500/- and Maximum

Rs.1,00,000/-

d) Minimum Rs.250/- and Maximum

Rs.1,00,000/-

34 What is the tenure of deposit for “ Sukanya Samriddhi Account ?

54

a) 14 Years from the date of opening of the account

b) 18 years from date of opening of the account

c) 21 years from the date of opening of the account

d) None of these

35 What is the maximum period upto which deposits can be made into “Sukanya Samriddhi Account?

a) 15 Years from the date of opening

of the account

b) 18 years from date of opening of

the account

c) 21 years from the date of opening

of the account

d) None of these

36 Which of the following are correct in respect of premature closure of “ Sukanya Samriddhi Account ?

a) Allowed in the event of death of the depositor on production of death certificate issued by competent authority.

b) Allowed if the account holder becomes a non-citizen or NRI after opening of account, the account shall deemed to be closed prematurely from the date of change of status.

c) Allowed in case of extreme compassionate grounds such as medical support in life threatening disease of the Account holder or the death of the guardian

d) All are correct.

37 What is the penalty amount for revival of Sukanya Samriddhi account which is in default?

a) Rs.20/- per year along with minimum specified amount per

year.

b) Rs.50/- per year along with minimum specified amount per

year.

c) Rs.70/- per year along with minimum specified amount per

year.

d) Rs.100/- per year along with minimum specified amount per

year.

38 Which of the following are correct in respect of withdrawal of funds from “ Sukanya Samriddhi Account ?

a) Withdrawal is permissible only after the girl child attains 18 years of age or has passed 10th

standard, whichever is earlier

b) Withdrawal is permissible only after the girl child attains 21 years of age or has passed 10th

standard, whichever is earlier

c) Withdrawal is permissible only after the girl child attains 18 years

of age and has passed 10th standard.

d) None of these

39 Is Sukanya Samriddhi Account transferrable to other banks / branches ?

a) No. b) Yes. But transferable among own branches upon request by the

subscriber.

c) Yes. PPF account can be d) None of these.

55

transferred to other branches / other banks or post offices and

vice versa upon request by the subscriber

40 Which of the following are correct regarding interest calculation to Sukanya Samriddhi Account ?

a) Interest on deposit shall be

calculated for the calendar month on the lowest balance in an account on the deposits made

between the close of the tenth day and the end of the month

b) The provision for monthly payment

of interest has been done away with

c) Interest shall be compounded Half yearly.

d) a and b

41 How many accounts can be opened under “ Sukanya Samriddhi Yojana “ ?

a) Upto two girl children b) Upto two girl children or three in case of twin girls as second birth

C

c) Upto two girl children or three in case of twin girls as second birth or

the first birth itself results in three girl children.

d) None of these

42 What is the minimum and maximum age of a girl child at the time of opening of

account under “Sukanya Samriddhi Yojana “ ?

B

a) Minimum age: 3 Years & Maximum

age : 10 Years

b) Minimum age : 0 (New born or

infants can be included in this scheme) & Maximum age : 10 Years

c) Minimum age: 3 Years & Maximum age : 12

d) Minimum age : 0 (New born or infants can be included in this scheme) & Maximum age : 12

Years

56

KEY TO MCQ:

Q 1 2 3 4 5 6 7 8 9 10

ANS A A C B B B C D D B

Q 11 12 13 14 15 16 17 18 19 20

ANS A C D A D B A B C B

Q 21 22 23 24 25 26 27 28 29 30

ANS C A D D C D C C C D

Q 31 32 33 34 35 36 37 38 39 40

ANS B B B C A D B A C D

57

KYC, AML, CFT, FATCA, CRS

1 Obligations on the Bank are placed under Section ____ of the Prevention of Money Laundering Act, 2002

a) Section 3 b) Section 7

c) Section 9 d) Section 12

2 Which of the following obligations on the Bank placed by the Prevention of Money Laundering Act, 2002 are wrong

a) maintaining a record of prescribed transactions

b) furnishing information of prescribed transactions to the specified authority

c) verifying and maintaining records of the identity of its clients and identifying the beneficial owners, if

any, of such clients

d) preserving records in respect of prescribed transactions and furnishing information to the

specified authority for a period of ten years from the date of transactions, and for eight years in

respect of identity of its clients and beneficial owners after the

cessation of relationship.

3 For customer identification in a partnership firm, certified copy of which of the following documents is not required

a) Registration Certificate b) Certificate of Incorporation

c) Partnership deed d) An officially valid document in

respect of the person holding power of attorney to transact on its behalf.

4 Customer Profile of individual account holders should be compiled covering the following information in the account opening forms: (i) Family details

(ii) Source of funds (iii) Monthly Income & Annual turnover (in the case of business) (iv) Date of Birth & Educational qualification

(v) Assets (approx value) & Details of existing credit facilities, if any

a) i, ii, iii, iv b) i, iii, v, iv

c) i, ii, iii, v, iv d) v, iii, i, ii

5 Reserve Bank of India guidelines on KYC / AML CFT measures stipulate that transactions of suspicious nature should be monitored and should be filed as

Subjective STRs with the

a) Finance Intellectual Unit- India b) Financial Intelligence Unit – India

c) Financial Inclusion Unit- India d) Financial Tech Unit- India

6 Under FATCA, The term “Financial Institution” means

a) a Depository Institution or a Custodial Institution

b) a Specified Insurance Company

c) an Investment Entity d) All of the above

58

7 Which of the following is NOT true about Phishing

a) it is a social engineering technique b) used for contacting individuals or businesses to obtain non-banking/non-financial information

c) messages are sent to general audience /specific person that look to be sent by a trustworthy source

d) information is usually used to commit identity theft or financial fraud.

8 Scrutiny of unusual Cash transactions up to Rs.2,00,000/- & Transfer transactions up to Rs. 5,00,000/- should be done by _____ at branches/offices on a daily basis

a) Senior Assistant for transactions handled by him

b) Special Assistant for transactions handled by him

c) Senior Special Assistant for

transactions handled by him.

d) Manager of Division /Services

Manager / Branch Manager

9 All accounts where STRs have been filed with FIU-INDIA are to be assigned

a) Low Risk b) Medium Risk

c) High Risk d) Risk category need not change

10 Which of the following documents submitted by Persons of Indian Origin (PIO)

and Overseas Citizen of India (OCI) is not acceptable for opening NRO/NRE/FCNB (B) accounts:

a) Copy of PIO/OCI Card issued by Govt. of India.

b) Copy of the TIN issued by the country of residence

c) Copy of marriage certificate

establishing the spouse as NRI/Indian origin

d) Copy of relevant pages of passport

of parents or grandparents, establishing them as NRI/Indian origin

11 Which of the following are not true in respect of Cash Transactions of Rs. 10 lacs and above

a) Cash withdrawals and deposits for Rs.10.00 lacs and above to be recorded and reported to

controlling office every month.

b) For determining “integrally connected transactions” all accounts of the same customer

should be taken into account.

c) Bank generates monthly CTRs

through AMLOCK software at AML/CFT Cell at Belapur in respect of all such transactions

d) Branches extract relevant CTRs

provided by AML/CFT Department, and preserve hard and soft copies for perusal by internal / external

auditors.

12 The Report regarding US reportable persons and Other Reportable persons to CBDT have to be signed by

a) MD (Compliance & Risk) b) CGM (Compliance & Risk)

c) Principal Officer d) To be furnished electronically only

13 For restricting opening money mule accounts, KYC/AML/CFT Policy based on guidelines issued by RBI which stipulates:

a) Dispose off records b) Monitoring of transactions at various levels on the basis of threshold limit fixed by the branch.

c) ROC search d) None of these

59

14 The foreign NGOs, which have been put under ‘Prior approval category (PAC)’, can receive foreign contribution only after taking prior permission from

a) IRDA b) Reserve Bank of India

c) SEBI d) Ministry of Home Affairs,

Government of India.

15 After the launch of National Voters‘ Service Portal, genuineness of a voter ID card can be ascertained by visiting

a) http://electoralsearch.in/. b) http://election.ind

c) http://voterid.co.in d) http://voteforindia.co.in

16 UAPA means

a) Unusual Activities Prevention Act b) Unsuspectful Activities Protection

Act

c) Unlawful Activities Prevention Act d) Unauthorised Activities Prevention Act

17 An account reportable to a country or territory outside India other than US is termed as

a) FATCA b) Other Reportable Account (CRS)

c) Non Reportable Account d) None of the above

18 Which of the following statements are wrong in the process of closing a non-KYC

compliant account:

a) Give due notice of three months to

comply with KYC requirements followed by a reminder giving a further period of three months.

b) Impose ‘partial freezing’ by

allowing all credits and disallowing

all debits with the freedom to close

the accounts.

c) If still KYC non-compliant after twelve months of imposing ‘partial freezing’ the accounts should be

made inoperative.

d) Bank to close the account of such customers after issuing due notice to the customer explaining the

reasons for taking such a decision.

19 Suspicious transaction means a transaction whether or not made in cash which, to a person acting in good faith –

a) gives rise to a reasonable ground of suspicion that it may involve the

proceeds of crime

b) appears to made in circumstances of unusual or unjustified

complexity

c) a or b d) a & b

20 KYC compliance and fraud prevention day observes on

a) 1st Aug b) 1st Oct

c) 1st Dec d) 1ST Sept

21 The decision to open an account for a Politically Exposed Person (PEP) is taken by an official not below the grade of

a) JMGS b) MMGS

c) Senior Management Grade (SMG). d) Any of the above

22 Cross Border Wire Transfer Report (CBWTRs) has to be submitted to FIU IND when the transfer value is Rs. ________ in foreign currency

http://voterid.co.in/

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a) more than five lakh rupees or its equivalent

b) more than one lakh rupees or its equivalent

c) more than ten lakh rupees or its equivalent

d) irrespective of amount

23 HNI Non-Individual Customers having aggregate credit balance =< Rs 500.00 lacs to be categorised as


c) High Risk d) No separate risk category for HNIs

24 Unauthorized intrusion into a computer or a network is called

a) Phishing b) Vishing

c) Hacking d) Smurfing

25 As per provisions of PML Act, any deficiency in filing the mandatory reports by reporting entities will attract minimum penalty of Rs. ______ which may go to _________ per instance per day.

a) 1,000/- & Rs.10,000/- b) 100/- & Rs 1,000/-

c) 10,000/- & Rs.1,00,000/- d) Rs 10,000/- & Rs. 50,000/-

26 Under FATCA, what is a FFI

a) Foreign Financial Institutions b) Foreign Financial Intermediary

c) Financial Funding Institutions d) Financial Funding Intermediary

27 Preservation of account opening forms and KYC documents of clients should be for

a) Five years from transaction date b) Ten years from transaction date

c) Five years after cessation of

relationship with clients

d) Ten years after cessation of

relationship with clients

28 Money Laundering is defined under ___ of PML Act of 2002.


c) Section 4 d) Section 13

29 The Financial Intelligence Unit-India was set up by the Government of India in

a) 2003 b) 2002

c) 2004 d) 1997

30 Which of the following reports to be submitted to FIU-IND, periodicity is NOT in Monthly intervals

a) Cash Transactions Reports b) Counterfeit Currency Reports

c) Cross Border Wire Transfer Report d) Suspicious Transactions Reports

31 In case of transactions carried out by walk-in customers, customer’s identity and

address should be verified where the amount of transaction equals or exceeds

a) 20000 b) 50000

c) 100000 d) Not required

32 In case of non face to face customers, branches should insist on certification of documents. The following document is not accepted

a) Bankers of our branches abroad b) Notary public

c) Indian embassy d) Employer of the customer

33 The student who is pursuing foreign education should submit valid address proof within __ days of opening the account


c) 30 days d) 6 months

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34 Simplified KYC guidelines are applicable for FPIs. What is the full form of FPI?

a) Foreign pursuing Indians b) Foreign portfolio Indians

c) Foreign Portfolio Investors d) Foreign Portfolio Investment

35 The list of high risk countries is identified by Financial Action Task force and

updated

a) Once in a year b) Twice in a year

c) Thrice in a year d) Quarterly once

36 Find the odd man out in the high risk category list.

a) Non face-to-face customers b) Firms with sleeping partners

c) Companies having close family shareholding

d) Stock brokers

37 The principal officer of the Bank designated for monitoring of anti money laundering transactions is

a) General Manager (Network) b) Chief General Manager of the circle

c) Dy.General Manager (AML/CFT) d) General Manager (AML/CFT)

38 The AMLOCK software used for identifying the suspected transactions is acquired

from

a) M/S TCS b) M/s 3i-Infotech Ltd

c) M/s Wipro services d) M/s Infosys

39 Students of ___nationality will need prior approval of the RBI for opening the account.

a) Nigeria b) Sri lanka

c) Pakistan d) Afghanistan

40 Purposes proposed to be served by the KYC, AML & CFT Policy of the Bank are

a) To facilitate monitoring of transactions in Non-Profit

Organisations (NPO) and file NPO Transactions Reports

b) To file Counterfeit Currency Reports in cases of detection of

counterfeit currency.

c) To enable the Bank to know/understand the customers and their financial dealings better

which, in turn, would help the Bank to manage risks prudently

d) To comply with the Banking Regulations Act, Companies Act and CBDT regulatory guidelines.

41 The act of breaking a large financial transaction into a series of smaller

transactions to avoid scrutiny by regulators and law enforcement agencies.

a) Smurfing b) Vishing

c) Layering d) Integration

42 In which stage of Anti Money Laundering, the money launderer introduces illegal profits into the financial system by breaking up large amounts of cash into less

conspicuous smaller sums that are then deposited directly into a bank account

a) Placement b) Structuring


43 The process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived

from a legitimate source.

a) Anti Money Laundering b) Money Laundering

c) Prevention of Terrorist Activities d) Combating financing of Terrorism

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44 In this stage of money laundering, the launderer simply wires the funds through a series of accounts at various banks across the globe often disguising them

payments for goods or services, thus giving them a legitimate appearance.



45 In this stage of money laundering, the launderer invests the funds into real estate, luxury assets, or business ventures etc.



46 Which of the following is NOT true about Money Laundering / Financing of Terrorism

a) In case of money laundering, the funds are always of illicit origin

b) In case of terrorist financing funds can originate from both legal and illicit sources.

c) The primary goal of individuals/entities in financing of terrorism is to conceal both the

financing and nature of the financed activity.

d) The goal of individuals involved in financing of terrorism is to conceal the sources of money

47 Beneficial Owner means

a) an individual who ultimately owns or controls a client of a reporting

entity

b) the person on whose behalf a transaction is being conducted

c) a person who exercises ultimate effective control over a juridical

person.

d) All of the above

48 India has signed Inter-Governmental Agreement (IGA) with USA on

a) 3rd July, 2015 b) 9th July, 2014

c) 9th July, 2015 d) 9th July, 2016

49 Under Beneficial Owner, in a partnership firm, the beneficial owner is the natural person or one or more juridical person, has ownership of/entitlement to

a) more than forty-nine percent of

capital or profits of the partnership

b) more than twenty-five percent of

capital or profits of the partnership

c) more than fifty percent of capital or profits of the partnership

d) more than fifteen percent of capital or profits of the partnership

50 Non-Profit Organization means any entity or organisation that is registered

a) as a company registered under

Section 8 of the Companies Act, 2013

b) as a society under the Societies

Registration Act, 1860

c) As a trust d) Any of the above

51 Politically exposed persons are individuals who are i. Heads of States or of Governments, ii. senior government/judicial/military officers,

iii. individuals/entities donated for political parties iv. senior executives of state-owned corporations, v. senior politicians/important political party officials

63

vi. members of regional political party vii. close relatives of PEPs (for the purpose of risk categorisation)

a) i, ii, iii, iv. v, vii b) i, ii, iv. vi, vii

c) i, ii, iv, v, vii d) i, iii, iv. vi, vii

52 An entity that has no active business and usually exists only in name as vehicle for another company’s business operations is called

a) Shell company b) Hoax company

c) Hawala company d) Benami company

53 ________ has developed a series of 40 recommendations that are recognized as

the International Standard for Combating of Money Laundering and the Financing of Terrorism and Proliferation of Weapons of Mass Destruction.

a) Financial Action Task Force b) The Wolfsberg Group

c) United Nations d) BASEL committee

54 The FATF Recommendations were revised most recently in ______

a) 1996 b) 2001

c) 2003 d) 2012

55 India has also signed a multilateral agreement on ______ to automatically exchange information under the Common Reporting Standard (CRS)

a) 23rd June, 2015 b) 3rd July, 2015

c) 3rd June, 2015 d) 23rd July, 2015

56 ______ FSRBs have been established for the purpose of disseminating

international standards of FATF throughout the world.

a) Nine b) Ten

c) Five d) Three

57 Common Reporting Standard (CRS), formally referred to as the Standard for

a) Automatic Exchange of Financial

Account Information

b) Automatic Exchange of Foreign

Account Information

c) Automatic Exchange of Formal

Assets Information

d) Automatic Exchange of Foreign

Assets Information

58 The united body of 155 Financial Intelligence Units across the world


c) The Egmont Group d) BASEL committee

59 Which of the following is NOT true about Prevention of Money Laundering Act,

2002

a) impose obligation on banking companies, financial institutions

and intermediaries

b) provide for confiscation of property derived from or involved in money

laundering

c) came into force with effect from

July 1, 2004.

d) an Act of Parliament

60 Which of the following is NOT true about UAPA

a) It criminalizes terrorist acts and

raising of funds for terrorist acts.

b) It provides for attachment of and

seizure of properties connected with terrorist activities or

organisations.

c) The provisions of the act are not applicable if funds are legitimate

d) The Act was amended in 2013 to make it more effective and meet

the FATF standards.

64

61 Which of the following is NOT true about Financial Intelligence Unit-India

a) responsible for receiving, processing, analyzing and disseminating information relating

to suspect financial transactions.

b) responsible for coordinating and strengthening efforts of national and international intelligence,

investigation and enforcement agencies

c) is a regulatory authority set up by

the Government of India

d) reports to the Economic

Intelligence Council (EIC) headed by the Finance Minister.

62 The nodal agency for submission of data by Financial Institutions under

FATCA/CRS in India is

a) CBDT b) FIU-IND

c) Department of Financial Services, Ministry of Finance

d) RBI

63 The AML CFT department at the Bank level is headed by

a) Managing Director - IT, Risk & Subsidiaries

b) CGM & GCO

c) GM (AML-CFT) & Principal Officer d) MD - Retail & Digital Banking

64 Anti-money laundering guidelines for Private Banking are given by


c) United Nations d) BASEL committee

65 What is TBML

a) Trade Based Money Laundering b) Transaction Based Money Laundering

c) Terrorism Based Money Laundering


66 Which of the following is NOT true about Hacking

a) hacker may alter system or security features

b) hackers employ a variety of techniques like DoS, Malware etc

c) hacking includes attacks on social media

d) hacking does not include spoofing attacks

67 Once any Financial Institution is treated as NPFI, a ____ withholding tax would

be applicable for all payments made through such institutions.

a) 30% b) 50%

c) 70% d) 25%

68 ______ is self-replicating programs that spread by inserting copies of themselves into other executable code files or documents

a) Spoofing b) Root Kit

c) Viruses d) Denial of Service

69 FATCA is effective from ________. All accounts before this date are termed as pre-exisiting accounts.

a) July 01, 2015. b) July 01, 2014.

c) July 01, 2016. d) January 01, 2015.

70 Which of the following is NOT true about Pharming

a) a tactic used by criminals to redirect a legitimate web site to a

fraudulent site.

b) It tries to trick the user into clicking a URL

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c) uses malicious code to redirect the user to the criminal’s site

d) without his/her consent or knowledge, making it more difficult

to detect.

71 Which of the following is NOT true about Vishing

a) It is the telephonic version of phishing.

b) criminals attempt to extract information through a e-mail

c) uses social engineering techniques d) customer is tricked to provide

information on their financial accounts.

72 Smishing is a form of phishing that uses

a) e-mail messages b) cell phone text messages

c) phone calls d) web site

73 Which of the following is NOT true about modes of hacking

a) Packet sniffer: applications that

capture data packets in transit

b) Spoofing: websites which falsify

data by mimicking legitimate sites,

c) Root kit: a set of programs to subvert control of an operating

system

d) Vulnerability scanner: the process of recovering passwords from data

74 Method used by thieves to capture information from a cardholder to make

fraudulent transactions.

a) Skimming b) Pharming

c) Surfing d) Smurfing

75 Which of the following is a techniques used by criminals for skimming of card

a) Colluding with staff at retail

merchant points to obtain customer PIN

b) Inserting pads, films, camera or

other devices in the ATM to obtain customer PIN

c) Shoulder Surfing Customer PIN d) All of the above

76 Directors of a company move the assets from one limited company to another to ‘secure’ the benefits of their business and avoid the liabilities.

a) Asset stripping b) Phoenixing

c) Teeming and lading d) Colluding

77 Parameters for Risk-Based Transaction Monitoring (RBTM) are issued by

a) Indian Banks' Association. b) Reserve Bank of India

c) FIU-IND d) Ministry of Finance, Govt of India

78 Which of the following is NOT true about Name Screening

a) is part of Customer Acceptance

Policy

b) to weed out those persons or

entities already on board

c) the Financial Institution increases the risk of misuse of its channels

and facilities by unscrupulous elements

d) person or entity is screened against lists circulated by National

and International Organizations, Regulators, Agencies

79 Name Screening - scrubbing of entire customer base against the negative lists is done by the AML/CFT Department at

a) Monthly intervals b) Quarterly intervals

c) Half Yearly intervals d) Yearly intervals

66

80 Risk categorization of Pehla Kadam and Pehli Udaan a/cs are

a) Low b) Medium

c) High d) None of the above

81 Under FATCA, Broker-dealers, clearing organizations, trust companies come

under

a) Depository Institution b) Custodial Institution

c) Investment Entity d) Insurance Company.

82 HNI Individual Customers having aggregate credit balance > Rs 1.50 Crores & =< Rs 300.00 lacs to be categorised as


c) High Risk d) No separate risk category for HNIs

83 Which of the following determine the customer risk categorisation

a) Occupation b) Social Financial Status

c) Business Activity d) All of the above

84 In the context of FATCA, what is NPFI

a) Non Participating Financial Institution

b) Non Participatory Financial Institution

c) Newly Participating Financial Institution

d) Non Proliferating Financial Institution

85 Risk categorization of Salary Package a/cs of all Govt Depts are

a) Low b) Medium

c) High d) None of the above

86 URL for reporting Online Reporting of instances of detection of counterfeit currency notes by designed officials

a) https://ccr.sbi.co.in b) https://ccr.statebanktimes.in

c) https:// counterfeit.co.in d) https:// currency.sbi.in

87 What is Phantom or Ghost Shipment

a) Sending multiple payments to multiple bank accounts using the

same documentation.

b) Creating document for nonexistent shipment

c) Misrepresentation of price of

good/service

d) Any of the above

88 ____ serves as a back door in a computer system to allow an intruder to gain access to the system later

a) Malware b) Trojan horse

c) Key Loggers d) Virus

89 If the matter related to a suspicious transaction is pending in a court, the relevant records should be retained for _______ from the date of final verdict of the court.


c) 10 years d) No specific guidelines

90 Time intervals for periodic updation of KYC for existing high risk customers

a) 2 b) 6

c) 8 d) 10

https://ccr.sbi.co.in/

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91 FSRB stands for

a) FATF-Style Regional Bodies b) Financial system Regional Bodies

c) FATF Standard Regional Bodies d) FATF Standard Regional Board

92 State Bank of India has registered with US IRS on

a) 23rd December 2014 b) 23rd November 2014

c) 3rd December 2014 d) 3rd December 2015

93 Under Beneficial Owner, the term "Controlling ownership interest" means ownership of or entitlement to

a) more than twenty-five percent of

shares or capital or profits of the company

b) more than seventry-five percent of

shares or capital or profits of the company

c) more than fifty percent of shares or capital or profits of the company

d) more than forty-nine percent of shares or capital or profits of the company

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS D D B C B D B C C B

Q 11 12 13 14 15 16 17 18 19 20

ANS A A B D A C B C D A

Q 21 22 23 24 25 26 27 28 29 30

ANS C A A C C A C B C D

Q 31 32 33 34 35 36 37 38 39 40

ANS B D C C C D D B C D

Q 41 42 43 44 45 46 47 48 49 50

ANS A A B C D D D C D D

Q 51 52 53 54 55 56 57 58 59 60

ANS C A A D C A A C C C

Q 61 62 63 64 65 66 67 68 69 70

ANS C A C B A D A C B B

Q 71 72 73 74 75 76 77 78 79 80

ANS B B D A D B A C C A

Q 81 82 83 84 85 86 87 88 89 90

ANS B B D A A B B B B A

Q 91 92 93

ANS A A A

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BANKING LAW AND PRACTICE

1 Banker’s Lien is a general lien and is specially defined under:

a) Sec 58 of the Banking Regulation

Act

b) Sec 69 of NI Act

c) Sec 171 of Indian Contract Act d) Sec 45 of RBI Act

2 Banker’s General Lien is available in respect of

a) Securities received for sale b) Securities deposited by the

customer to secure a specific loan

c) All securities deposited with him as

banker by a customer, unless there is a contract inconsistent with lien

d) Credit Balance in deposit account

of the customer

3 The right of lien is available to the banker only when the goods/securities have

been given to him as

a) Trustee b) Bailee

c) Beneficiary d) Agent

4 The right of lien is available to the banker

a) Only when there is legally

enforceable debt with in the limitation period

b) Even in respect of time barred

debts

c) Upto 12 years from the date of advance

d) Only for those debts for which the securities were offered

5 Banker’s Lien is

a) A special type of mortgage b) An implied pledge

c) A hypothecation transaction d) A type of assignment

6 Bankers can exercise General Lien in respect of

a) Land and Building b) Machinery hypothecated to the Bank

c) Goods and Securities d) Balance in Current Account

7 When a customer owing two or more debts to the banker pays in money which is

not sufficient to discharge all the debts without any specific direction for its appropriation

a) The banker has a right to sue the payment as per his discretion to wipe out any debt which is due

including a time barred debt

b) The banker may appropriate the payment as per his choice debts which are not time barred

c) The amount will be appropriated in order of time the debts were

incurred

d) The banker has to get the consent of the borrower before

appropriation

8 Where neither the customer nor the banker makes an appropriation of the amount paid in as against any specific debt, the payment shall be applied in discharge of

debts

a) Which was created immediately

preceding the payment

b) In order of time

c) In equal proportion d) The matter to be referred to head office and then decided as per the

discretion of the board

69

9 Rule of Clayton’s case pertains to

a) Payment of cheques in clearing b) Settlement of dues between the bank and the guarantor or a

borrower

c) Banker’s general lien d) Appropriation of payments in a running account

10 According to the rule in Clayton’s case the moneys paid in by a customer in his current account are to be applied towards adjustment of overdraft

a) At the option of the banker b) As agreed to between the banker and the customer mutually

c) In the order of time in which the

debts were incurred

d) As directed by the customer

11 The rule of Clayton’s case applies in the case of

a) Accounts having credit balances b) Clean advances only

c) Term Loans only d) Running account having debit balances

12 The rule of Clayton’s case applies in the case of

a) Joint accounts b) Sole proprietorship Accounts

c) Partnership Accounts d) Both a & c

13 The Right of Lien refers to

a) Right of the Debtor to forego the securities

b) Right of the creditor to sell securities of the debtor

c) Right of the Creditor to retain

possession of securities belonging to debtor

d) Right of the debtor to pledge the

securities

14 Bankers Lien is called “General Lien” because

a) It is very general and has no special rights

b) The right is generally available but not always

c) The Right is available under the General Clause

d) It means it is not a Particular Lien i.e. it can be exercised for all his dues payable

15 In banker’s Parlance, ‘Set Off’ refers to

a) Setting off legal proceedings if the

borrower agrees to make payments

b) Setting off dues from one

customer against dues to another customer to save reserve requirement

c) Setting off amount due from bank to one customer against amounts

due from the same customer to the bank

d) Adjusting interest due from the customer on the loan against the

due on Fixed deposit account

16 Combining of accounts of customers is usually restored to when

a) One account of the customer shows debit balance and the other credit balance

b) One account of the customer is time barred and the other is not

c) Both accounts are showing debit balance, one is secured other is not

d) Both accounts are showing credit balance, one is active and the

70

other one is dormant

17 In case of death of a customer banking accounts of that customer are stopped

only when a banker receives

a) An order issued by a court of competent jurisdiction

b) On production of the death certificate issued by the

corporation or local bodies

c) A legal notice from the survivors of the deceased

d) Actual or constructive notice of a customer’s death

18 There is an announcement in the Newspaper about the death of one of the important client Mr. Ram Mohan yesterday. A cheque is presented in clearing

dated one month before. Now…..

a) The cheque should be returned with the remarks “Drawer

Deceased”

b) The cheque should be honoured as the bank has not received any

written notice of Mr. Ram Mohan from his family

c) The cheque should be paid as it bears the date prior to the death of Mr Ram Mohan

d) The cheque may be paid if the presenter executes an indemnity bond

19 The validity of cheque will not be affected by the death of the

a) Drawer b) Drawee

c) Endorser d) All cases the cheque losses validity

20 A Fixed Deposit is opened in the name of Mr A and Mr B. payable to ‘Either of

Survivor’. Mr A dies Mr B requests for the premature closure of the deposit. In this case

a) You can make premature closure as per the request of Mr B

b) You will make premature closure after obtaining the consent of all the legal heirs of Mr A

c) You will make the premature closure if Mr B is the only legal heir of Mr A

d) You will not make premature closure as the mandate ‘E or S’ is applicable only in case of maturity

21 What is the legal capacity of nominee while taking payment on behalf of legal heirs of deceased depositors?

a) Owner of funds b) Trustee

c) Administrator d) Liquidator

22 Under Section ______ of RBI Act, issue of bearer draft is prohibited

a) 31 b) 42

c) 45 d) 49

23 Under Garnishee Order, Garnishee means?

a) Account holder b) Judgment Creditor

c) Judgement – Debtor’s Debtor d) Court

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24 Negative lien means

a) A declaration by company not to encumber assets of company without prior consent of banker

b) Deposit of title deeds with the bank with an oral declaration to mark bank’s lien

c) A letter executed by a company authorizing the bank to mark lien on it’s FDR receipt

d) A trust letter executed by company when goods are taken from the pledged stock

25 Under which section of Banking Regulation Act 1949, every banking company has to maintain Statutory Liquidity Ratio (SLR)

a) Sec 5 (b) b) Sec 25

c) Sec 24 d) None of these

26 Credit Information Companies in India other than CIBIL ?

a) Highmark b) Experian

c) Equifax d) All of these

27 The appellate authority under Banking Ombudsman Scheme is _________.

a) Deputy Governor, RBI b) RBI Governor

c) Chairman of the Bank concerned d) High Court of the state

28 If the garnishee order is received on a firm’s account, what would be the position of individual account of partners being maintained with same bank branch?

a) The order will be applicable b) The order will not be applicable

c) It will be applicable through special

order of court


29 Under KYC/AML guidelines FIU stands for

a) Finance in USA b) Finance Intelligence Unit

c) Financial Intelligence Unit d) Foreign Intelligence unit

30 U/s 269 T of the Income Tax Act, the branches will make payment of time

deposits with interest thereon amounting to Rs.______ and above by way of credit to account/Bank Draft/crossed cheque only:

a) Rs.10,000/- b) Rs.20,000/-

c) Rs.50,000/- d) Rs.1,00,000

31 There is a Current Account in the Joint names of Mr Ramu & Mr Somu with a debit balance of Rs.240000/-. Mr Ramu expires. The bank can recover the overdraft

from

a) The Legal heirs of Mr Ramu only b) Mr Somu only

c) Mr Somu and/ or the estate of Mr

Ramu

d) Mr Somu and the estates of Mr

Ramu in equal proportion

32 A customer is said to have died intestate, when

a) He has left a will b) He dies without will

c) He has left a probate d) Any of these

33 Who among the following is appointed by a court to look after the estate of a person who died without leaving a WILL?

a) Agent b) Lawyer

c) Lawyer d) Administrator

34 Which of the following is NOT the essential requirement for the endorsement as

per Negotiable Instrument Act, 1881?

a) It should be on the instrument b) It should contain conditional order

72

c) Signatures should be in ink and not by pencil or rubber stamp

d) It should be made by the holder or the maker

35 Which of the following is NOT a legal requirement for opening a bank account of a limited company?

a) Copy of Memorandum of Association

b) Copy of Articles of Association

c) Specimen Signatures of all the

directors

d) Certificate of Incorporation

36 All inoperative accounts may be classified as

a) No Risk b) High Risk

c) Medium Risk d) Low Risk

37 Name the unique identification number allotted to the Director of a Company?

a) CIN b) TIN

c) DONE d) DIN

38 BCSBI was introduced as per the recommendations of which committee?

a) Basel Committee b) Talwar Committee

c) S S Tarapore Committee d) Verma Committee

39 As per MSMED Act 2006 small enterprises engaged in service activities are defined as those having an investment in original equipments up to

a) Rs 5 lacs b) Rs.10 lacs

c) Above Rs10 lacs up to Rs 2 Crs d) Above Rs 5 lacs up to Rs 1 cr

40 CERSAI is established under which Act ?

a) SARFAESI Act 2002 b) Transfer of Property Act 1882

c) Banking Regulation Act 1949 d) Reserve Bank of India Act 1934

41 Which of the following refers to “the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be

advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability”?

a) Mortgage b) Hypothecation

c) Pledge d) Lien

42 Which of the following allows an initial advance to the beneficiary before shipment

of the goods?

a) Irrevocable confirmed letter of

credit

b) Revolving credit

c) Transferable letter of credit d) Red Clause Credit

43 Which of the following is NOT the kind of shares issued by the company under

Law?

a) Ordinary shares b) Deferred shares

c) Future shares d) Preference shares

44 At the time of opening accounts to Companies, which of the following is not one of the essential feature to be verified in Memorandum of Association

a) Registered Address b) Promoter Directors

c) Objectives of the company d) Borrowing powers of the Directors

45 Mr A and B signed a joint and several promissory note to avail a Loan from Bank. Within a month the document is getting time barred. Mr A alone signs the revival letter and Mr B refuses to sign the RL. What is the position of liability of the

borrowers?

http://www.vuzs.info/



https://www.proprofs.com/discuss/q/1431626/signed-joint-several-promissory-note-avail-loan-from-bank-wi




73

a) If a suit is filed before the document expires, then Both A and

B are liable.

b) If the suit is filed after the expiry of limitation, then A alone is liable

and Bank cannot proceed against

c) Once RL is not signed by both

borrowers, the Bank has no option than to write off.

d) A & B both correct

46 If Power of Attorney is executed abroad it has to be stamped within _____ months

after receiving in India

a) 1 b) 3

c) 6 d) 12

47 Protection to the Collecting Banker is available only for crossed cheques under Section----of the N.I.Act.1881.

a) 130 b) 141

c) 131 d) 138

48 Special crossing of a cheque means

a) Two transverse parallel lines on the back of the cheque

b) Bank’s name across the face of the instrument

c) An ‘X’ mark on the face of the cheque


49 Liability of Partner in case of partnership firm is

a) Limited to the extent of his share of the business profits

b) Unlimited

c) Limited to the extent of capital d) Limited to the extent of loan given to the firm

50 The Relationship between Banker and Locker hirer in case of locker is ______

a) Debtor – Creditor b) Licensor – Licensee

c) Bailor – Bailee d) Principal –Agent

51 Under which section of State Bank of India Act 1955, State Bank may acquire the business of other bank

a) Sec 5 b) Sec 25

c) Sec 35 d) Sec 42

52 Under the provisions of Companies Act, the filing of particulars for getting a

charge registered with ROC for certain transaction, is the responsibility of:

a) Borrowing company b) Financing Bank

c) Secretary of the Company d) None of these

53 A cheque has been wrongly collected and credited into the account of a customer. Later it was found that the cheque does not belong to the customer.

This is called as

a) Material alteration b) Subrogation

c) Conversion d) Redemption

54 RBI has prohibited Banks from crediting ‘account payee’ cheques to the account of any person other than the payee named therein. However, with a view to mitigating the difficulties faced by members of co-operative credit societies in collection of account payee cheques, RBI has permitted banks to collect for such societies account payee cheques drawn for an amount not exceeding Rs._______on behalf

74

of their constituents.

a) Rs.50,000/- b) Rs.100,000/-

c) Rs.10,000/- d) Rs. 25,000/-

55 On which of the following, a garnishee order is not applicable?

a) funds in the account at the time of receipt of garnishee order

b) term deposit receipt which is yet to mature

c) recurring deposit maturing after 3 months

d) amount deposited by the customer after receipt of the garnishee order

56 Bank Branch is at Mumbai. The registered Office of the company is at Chennai. The factory of the company is at Hyderabad. The property is situated at Bangalore. Equitable Mortgage of the property can be created

a) Mumbai to have better control

b) Bangalore as the property is situated there

c) Chennai as the company's

registered office is situated there

d) Any Notified Centre in India

57 A & B maintain a Joint Account with present balance of Rs.6000.00 You received

an Income Tax Attachment Order for Rs.8000.00 in the name of B. Unless it is proved otherwise, you will attach Rs.

a) Rs.4000 b) Rs.3000

c) Rs.6000 d) No amount should be attached

58 IT attachment order is issued under section _____ of Income Tax Act 1961

a) 131 b) 222

c) 226 d) 229

59 Income Tax Attachment order does not attach

a) Term Deposits b) Demand Deposits

c) Any money held by the bank other

than as deposit

d) All can be attached

60 Bank can exercise Right of Set Off in the following cases

a) Deposit in the name of M/s A&B company, partnership firm and the loan in the name of partner A

b) Deposit in the name of partner A, and the loan in the name of partnership firm A&B Company

c) Deposit of Mr A in Karolbagh Delhi Branch of our bank and loan is in Bangalore Indiranagar Branch

d) Deposit in the name of Mr A, Layer, Office account and loan in the name of Mr A

61 Cheque has been defined in Section _______ of Negotiable Instruments Act 1881

a) Sec 3 b) Sec 4

c) Sec 5 d) Sec 6

62 A branch can be kept open for government business on a public holiday on the

requisition made by

a) District Collector b) Judicial Magistrate

c) Treasury Officer d) None of these

63 Charges to be filed with the Registrar of companies within ___ days from the date of creation without penalty.

a) 30 Days b) 90 Days

c) 180 Days d) 1 Year

https://www.proprofs.com/discuss/q/353266/bank-branch-mumbai-the-registered-office-company-chennai-fac



75

64 The maximum number of Partners in Partnership Act is restricted under Sec ____ of ________ Act

a) Sec 11 of Partnership Act b) Sec 11 of Contract Act

c) Nowhere it is defined, however it is

a custom

d) Sec 11 of Companies Act

65 Which of the following is not one of the features of Partnership

a) Minimum 2 Maximum 100 b) Profit Motive

c) HUF can also be accepted as a partner

d) Business conducted jointly; business includes lawful trade, occupation or profession.

66 Hypothecation is defined in:

a) Indian Contract Act 1872 b) Transfer of Property Act

c) Negotiable Instrument Act d) SARFAESI Act

67 Inchoate Negotiable Instrument means

a) Stale Instrument b) Incomplete instrument

c) Fake instrument d) Lost Instrument

68 Garnishee order is issued under which of the following------------

a) Civil Procedure code b) Criminal Procedure code

c) Indian Contract Act d) Banking regulation Act.

69 All the employees of the Bank has to declare Assets and Liabilities under which

section of Lokpal and Lokayuktas Act 2013

a) 41 b) 42

c) 43 d) 44

70 Promissory note has been defined as per Section ____ of Negotiable Instruments Act 1881

a) Sec 3 b) Sec 4

c) Sec 5 d) Sec 6

71 In the case of dishonour of cheque due to insufficiency of funds, the punishment to the drawer under Section 138 of N.I. Act is_____________

a) Twice the amount of cheque b) One year imprisonment

c) Twice the amount of cheque or one year imprisonment

d) Twice the amount of cheque or two years imprisonment or both

72 A has opened a Savings Bank account on 15.05.2018 and received cheque book on 19.05.2018, but wrote the date as 10.05.2018 and presented for payment on 22.05.2018. The bank in this case can pay

a) Pay the cheque b) Refuse the payment

c) Contact the account holder d) None of these

73 When loan is to be granted against the security of a LIC policy, which charge is to be created:

a) Mortgage b) Hypothecation

c) Assignment d) Pledge

74 A person will be declared as legally dead, if for a period of ………….years or more

from the date of his / her being reported missing.

a) 12 yrs b) 7 yrs

c) 5 yrs d) 3 yrs

75 The Central Electronic Registry (CERSAI) has been established by the Central Government

76

under Section 20(1)

a) SARFAESI Act 2002 b) RBI Act

c) CERSAI Act 2002 d) B R Act

76 As per the notification issued by Government of India on 31st March 2011, in

respect of filing of mortgage by deposit of title deeds for all mortgages created on or after 31st March 2011, what is the time frame the Govt has prescribed for filing?


c) 45 days d) 90 days

77 A cheque is written in different hand-writings and different inks. Will you pay the cheque?

a) No. It will not be paid b) Yes. It will be paid as long as the drawer’s signature is not forged

c) Drawer will have to sign where

ever different writings are done by different persons and wherever different inks are used


78 A Probate is --------------------------

a) Will of the deceased b) The last will of a person certified

by legal heirs

c) A copy of will certified by a court for settlement of property of the

deceased.

d) A registered will of the deceased.

79 Banking Ombudsman can award maximum compensation to the customer for an

amount up to ________ in case of disputes related with Banking transactions

a) Rs 10 lacs b) Rs 15 lacs

c) Rs 20 lacs d) Rs 25 lacs

80 Complaints under COPRA for claims upto Rs.20 lacs can be lodged with

a) Consumer Disputes Redressal

Forum (District Forum)

b) State Level Consumer Disputes

Redressal Commission

c) National Consumer Disputes Redressal Commission

d) None of these

81 Tax deducted at source from interest income of Term deposits is deducted under Section _____ of Income Tax Act 1961


c) Section 194 A d) Section 194 I

82 A mandate in a partnership account can be cancelled by.......

a) All the partners b) Any of the partners

c) Majority of partners d) None of the above

83 If the materially altered cheque is paid and the alteration is not visible even after careful examination of the cheque , the bank is protected under which section of Negotiable Instruments Act 1881

a) Sec 87 b) Sec 89

c) Sec 20 d) No protection is available

84 Under RTI Act 2005 , an applicant has the right to file a second appeal to Central

Information Committee within …... days from the date of decision of the Appellate

77

Authority

a) 90 b) 35

c) 30 d) 10

85 Monetary ceiling of cases to be referred to the Lok Adalat organized by Civil Courts

is Rs. _______ lacs.

a) Rs.25 lacs b) Rs.10 lacs

c) Rs.20 lacs d) Rs.05 lacs

86 Which of the following statement is correct in respect of crossing of a cheque?

a) Crossing can be done by drawer b) Crossing can be done by drawer, holder payee

c) Crossing can be done by drawer, holder payee or last endorsee

d) Crossing can be done by drawer, holder payee or last endorsee or the bank

87 Under COPRA, Appeal against District Forum’s decision should be made within ____ days.



88 The periodicity of updation of KYC for low risk customers is for every _____ years


c) 8 years d) 10years

89 National Consumers awareness day is observed on

a) 1st July b) 1st August

c) 24th December d) 24th November

90 The term CFT stands for

a) Combating of Financing of Terrorism

b) Criminal Fund Transfer

c) Criminal Financial Transactions d) Codes For Transactions

91 Special Crossing has been defined under Sec 124 in NI Act. What do you

understand by special crossing?

a) Special Crossing means Writing the name of the Bank within the lines

b) Special Crossing means Writing the name of the Bank within the lines or without lines

c) Special Crossing means putting two parallel lines with or without words.

d) Quarterly Service Tax statement

92 Interest on Savings Bank interest is exempted under income tax upto Rs 10,000 as per Sec _____ of Income Tax Act 1961

a) Section 80 TTA b) Section 80C

c) Section 80 D d) Section 80E

93 The periodicity of uploading / submission of Form 60/61 to Income tax Department is......

a) Weekly b) Monthly

c) Quarterly d) Half-yearly

94 The threshold limit in case of salaried customers, under risk categorization of KYC

is______

a) 2 months salary b) 1 month salary

c) 25% of annual income or d) Rs 100000/-

78

maximum Rs 10 lac

95 Tax is required to be deducted at source when rent payments made in a financial year [including advance, if any] exceed Rs.......

a) Rs 1,80,000 b) Rs 2,50,000

c) Rs 2,00,000 d) Rs 1,50,000

96 Tax deducted at source from salaries is deducted under Section _____ of Income

Tax Act 1961


c) Section 194 A d) Section 194 I

97 Under Banking Ombudsman Scheme, the Banking Ombudsman can award compensation in credit card related issues to the customer for an amount upto:

a) Rs.1 lakh b) Rs 10 lakhs

c) Actual loss or Rs.1 lakh whichever

is lower.

d) Actual loss or Rs.10 lakhs

whichever is higher.

98 CAVEAT petition is valid for ------- days from the date of issue



99 Registration of partnership firm is not compulsory but banks prefer registered

firms because

a) Only Registered firms can be sued

by others

b) Only Registered Firms can sue

others

c) Registered firms can’t sue others d) Registered firms can neither sue nor sued

100 An alteration that changes the basic direction of the drawer and is not authenticated by him, is called material alteration under NI Act, which does not include:

a) Change in amount, name of payee or date

b) Mutilation of cheque

c) Converting bearer into order

d) Cancellation of crossing or converting special crossing into general crossing

101 SARFAESI Act 2002 does not concern which of the following aspects:

a) Securitization of Financial Assets b) Reconstruction of Assets

c) Authority to enforce without the intervention of the court

d) Setting up of Central Registry

102 To recover Bank dues Banks will follow Two types of recovery measures. i.e Soft Recovery measures and Hard Recovery Measures. Which one of the following is not one of the Hard Recovery Measures?

a) Filing a suit at DRT b) Compromise Settlement

c) Proceeding for Vehicle seizure d) Proceeding under SARFAESI Act

103 To recover Bank dues Banks will follow Two types of recovery measures. i.e Soft Recovery measures and Hard Recovery Measures. Which one of the following is not one of the Soft Recovery Measures?

a) Proceeding under SARFAESI Act

b) Compromise Settlement

c) Lok Adalat

d) Bank Adalat

79

104 Under the provision of SARFAESI Act 2002, where a transaction of securitization is registered:

a) Registrar of Companies b) Registrar of Assurances

c) Registrar of Firms d) Registrar of Central Registry

105 Under the provision of SARAESI Act 2002 a charge on moveable property in favour of secured without delivery of possession to the creditor is called:

a) Mortgage b) assignment

c) Pledge d) hypothecation

106 In the process of securitization of Non Performing Assets (NPAs), the non-liquid

financial assets (NPA) are converted into marketable securities in the form of:

a) Shares b) bonds

c) security receipts d) pass through certificates

107 What norm has to be followed by a securitization company regarding owned funds (capital) and the acquired financial assets i.e. owned funds as % age of acquired

assets

a) 20% b) 15%

c) 12.5% d) 10%

108 At the time of take over the bad loans from 3 banks it is found that these banks have filed suits in different DRTs. Securitization company wants to get these cases

in one DRT, which can be permitted by:

a) Central Govt. b) Supreme Court

c) High Court d) DRAT

109 Provisions of the Banking Regulation Act, 1949 are not applicable to

a) Primary Agricultural Society b) Nationalised Banks

c) Non Nationalised Banks d) Cooperative Banks

110 Under the provision of SARFAESI Act 2002 which of the following is not part of the

financial asset reconstruction:

a) takeover of management of the

unit

b) re-schedule of the dues payable

by the borrower

c) taking possession of the assets d) none of the above

111 As per Sec 42(1) of RBI Act, 1934 every bank is required to maintain with RBI an

average daily balance equal to a percentage of the ________

a) Net ANBC b) Gross ANBC

c) Net demand and time liabilities d) Total Advances

112 Under the provision of SARFAESI Act 2002, what is meant by enforcement of

security interest:

a) sale of assets of the borrowing party by the bank

b) sale of charged assets by the secured creditor through DRT

c) sale of charged assets by the secured creditor without court

intervention

d) getting bank's charge registered with Central Registry

113 Bank Rate has been defined under Sec 49, of RBI Act. What is Bank Rate

a) The rate at which RBI buys or rediscounts bills of exchange or

other commercial paper eligible for

b) The rate at which Public Sector Banks buys or rediscounts bills of

exchange or other commercial

80

purchase from Banks paper eligible for purchase from Private Banks

c) The rate at which RBI buys bills of exchange or other commercial

paper eligible for purchase from Banks

d) The rate at which RBI rediscounts bills of exchange or other

commercial paper eligible for purchase from Banks

114 if after sale of secured asset, the dues of the secured creditor are not paid fully,

what option does the secured creditor have:

a) he has to write off the same b) he can file a suit in a civil court

c) he can file a suit in a DRT

d) b and c

115 What time period is to be given to the borrower as a notice before sale of the secured asset:



116 Exemptions are available to Banks while disclosing information under Sec 8 of RTI act. Which of the following is not one of the exemptions available to Banks?

a) Personal Information of a customer b) Fiduciary Information of a customer

c) Official Information of a customer

maintained with Banks

d) Commercial confidence of a

customer

117 Minimum paid up share capital in case of a public company is _____________

a) 1 Lakh b) 5 Lakhs

c) 3 Lakhs d) 7 Lakhs

118 To exercise its powers and perform its functions and discharge its duties, the RBI is authorized under The Payment and Settlement Act, 2007 to constitute a committee of its central board, which is known as BPSS. What is acronym of BPSS

a) The Board for Regulation and Supervision of Payment and Settlement Systems

b) The Board for Payment and

Settlement Systems

c) The Branch for Revised Supervision of Payment and Settlement Systems

d) The Board for Supervision of

Payment and Settlement Systems

119 Minimum no. of Directors in case of a public company is _____________

a) 1 b) 2

c) 4 d) 3

120 Debentures payable to person whose name appears both on Debenture Certificate and company’s register is called

a) Bearer b) Registered

c) Unregistered d) None of the above

121 XYZ Company accepted deposits on March 1st 2013 for a period of 5 Years.

Whether a Company can accept deposits from public for 5 years.

a) Yes, the company can accept

deposits upto 5 years

b) Yes in case the Company has

taken permission from company

81

law board

c) Yes in case the Company has taken permission from SEBI

d) No, The company cannot accept deposits for five years

122 In case of Non -Profit making Companies notice of general meeting should be

given with in _____ days

a) 14 b) 15

c) 21 d) 22

123 A company should complete at least ________ years, to issue the shares at

discount price.

a) 1 b) 2

c) 3 d) 4

124 Which of the following is not one of the essential character sticks of a valid contract, under Indian Contract Act, 1872?

a) Coercion b) Consent

c) Offer d) Acceptance

125 XYZ co, incorporated on 1 st Jan 2018. The Annual General Meeting (AGM) was scheduled on 1 st July 2018. However, the Registrar of Companies has extended the date to 1 st Sep.2018. Is it valid.

a) Invalid b) Valid

c) Valid if only SEBI permits d) b & c are correct

126 In case of Partly Convertible Debentures non-convertible portion is classified as_____

a) Equity b) Debt

c) Both (a) & (b) d) None of the above

127 Under Minimum Wages Act, revision of minimum wage rates is based on a____ index and wages can be fixed for an entire state, part of the state, class or classes and employments pertaining to these categories.

a) Consumer Price Index b) cost of living index

c) Whole sale Price Index d) BSE Index

128 Under Right to Information Act, if any Bank Refusal to receive an application for information without any reasonable cause, the Central Information Commission (CIC), at the time of deciding any complaint or appeal is vested with powers to impose penalty of Rs._________ per day subject to a total of Rs._________

a) Rs.250/- & Rs.25,000/- b) Rs.50/- & Rs.5,000/-

c) Rs.100/- & Rs.10,000/- d) Rs.1000/- & Rs.10,000/-

129 In any factory or industrial establishment where less than 1000 employees are employed the wages shall be paid before the expiry of the ____ day.

a) 10th day b) 2nd day

c) 7th day d) None of the above

130 The minimum, maximum number of Share Holders in a Private Limited Company

a) 50 & 200 b) 50 & 100

c) 100 & 200 d) 50 & 250

131 Under Sec 10, of NI Act, Banks get protection, if a payment is in due course. A payment would be considered in due course if:

(a) Payment is as per apparent tenor of instrument

(b) Payment is in good faith and without negligence (c) Payment is to person in possession of instrument

82

(d) Payment under circumstances which do not afford a reasonable ground for believing that he is not entitled to received payment of the amount

mentioned there in (e) Payment must be made in money only.

a) a, b, c, d & e b) a, b, c & d

c) a, b, d & e d) b, c & d

132 What is the disadvantage for an Unregistered Partnership Firm compared to a

Registered Partnership firm.

a) A Registered Partnership firm can

sue their Creditors in case of default, where as the Un-Registered partnership firm can

not.

b) A Registered Partnership firm can

sue their Debtors in case of default, where as the Un-Registered partnership firm can

not.

c) A Un-Registered Partnership firm can sue their Debtors in case of

default, where as the a Registered partnership firm cannot.

d) Both can sue their Debtors, in case of default

133 In a partnership firm, the difference of opinion over some ‘fundamental matter’ can be settled

a) All the partners b) Majority of partners

c) Senior partners d) Managing partner

134 Which of the following statement is correct?

a) A servant or an agent who agrees to receive, in addition to or in place of his regular remuneration, a

portion of profits of business, is considered to be a partner

b) A widow or child of a deceased partner who receives a portion of profits as annuity, is considered to

be a partner.

c) A seller of goodwill who is given a

share in the profits of a business he has sold, is considered to be a partner

d) A joint-owner of property who

receives a share of profit arising from the property, is not considered to be a partner

135 Which of the following statement about a minor partner is incorrect?

a) A minor can be admitted only to

the benefits of an existing firm

b) A minor cannot be admitted to the

benefits of a new firm taking minor as partner

c) A minor cannot be a full-fledged

partner in a firm.

d) A minor can be a full-fledged

partner in a firm.

136 A partnership where its duration is fixed and cannot be dissolved by any partner at his will, is known as

a) Particular partnership b) General partnership

c) Partnership for a Term d) Partnership at will.

137 Which of the following is an absolute duty of a partner and cannot be excluded by an agreement to the contrary?

a) Duty to share losses equally b) Duty to indemnify for loss caused

by partner’s fraud.

83

c) Duty to indemnify for loss caused by negligence.

d) Duty to account for profits of a competing business.

138 The Limited Liability Partnership Act, 2008 (6 of 2009) is an Act to make provisions for the

a) formulation and regulation of General Partnership Firms and Limited Liability formed under

Indian Partnership Act, 1932

b) formulation and regulation of Joint Ventures with unlimited liability formed under Indian Contract Act,

1872

c) formulation and regulation of Chit Funds Organisations with unlimited

liability formed under the Chit Funds Act, 1982

d) Formation and regulation of Limited Liability Partnership with

limited liability formed under the Limited Liability Partnership Act,

2008.

139 Where the money received from a third party by the firm, in the ordinary course of its business, is misapplied by one of the partners to his own use, then the

a) Defaulting partner alone is liable for the same.

b) Firm is liable for the same

c) Firm is not liable for the same d) Third party has no remedy

140 A retiring partners has the right to carry on a business competing with that of the firm, but he cannot

a) Represent himself to be a partner b) Solicit firm’s existing customers

c) Use firm’s name d) All of these

141 On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of

the deceased partner is

a) Liable b) Not liable

c) Treated as security d) Proportionately liable

142 The firm is bound by an act of a partner done without any express or implied authority if such act is

a) Done in emergency b) Done to protect the firm from loss-threatened by the emergency

c) Reasonable in the circumstances d) All of these

143 If transfer made from insolvency, forfeiture or sale in execution of a decree, what it is called as?

a) Transfer by will b) Transfer by operation of law

c) Transfer by act of parties d) None of above

144 “Transfer in favor of unborn person cannot be done”, This sentence is …………….

a) Partly False b) Absolutely True

c) Absolutely False d) Partly True

145 In transfer of property from below which is movable property ?

a) Right of fishery b) Life time interest in immovable

property

c) Grass d) Right to collect lac from trees

146 A was trusty of one property from the amount of trust he purchase some land for his brother B , B put this land as mortgage to C, does C is responsible in this fraud?

84

a) No b) Yes

c) No one is responsible d) Both responsible

147 The doctrine of “Constructive Notice” has evolved from which of the undernoted countries?

a) India b) France

c) Greece d) Britain

148 While we are financing against LIC policy we have to create a charge against the security. The charge will be called as Assignment. The word ‘ Assignment’ is

defined under which act.

a) Indian Contract Act, 1872 b) Indian Companies Act, 1956

c) Under Insurance Act, 1872 d) Negotiable Instruments Act, 1881

149 The main objectives of the BCSBI are to plan, evolve, prepare, develop, promote and publish comprehensive Codes and Standards for banks, for providing for fair treatment to their customers. BCSBI Stands for

a) Banking Code Standard Boards of India

b) Banking Code Standards Board of India

c) Bank Code of Standards Board of India

d) Banking Code of State Bank of India

150 Can a son being a member of HUF consisting of his father, himself and his

brothers, form an HUF consisting of himself, his wife and minor son?

a) Yes, as per Hindu Law, It is

accepted.

b) No, under Hindu Law, there can’t

be a HUF within a HUF.

c) Yes, under Muslim Law, there can


d) No, under Hindu Law, there can’t


KEY TO MCQ:

Q 1 2 3 4 5 6 7 8 9 10

ANS C C B B B C A B D C

Q 11 12 13 14 15 16 17 18 19 20

ANS D D C D C A D A C A

Q 21 22 23 24 25 26 27 28 29 30

ANS B A C A C D A A C B

Q 31 32 33 34 35 36 37 38 39 40

ANS C B D B C C D C C A

Q 41 42 43 44 45 46 47 48 49 50

ANS A D C D D B C B B B

Q 51 52 53 54 55 56 57 58 59 60

ANS C A C A D D B C D C

Q 61 62 63 64 65 66 67 68 69 70

ANS D A A D C D B A D B

Q 71 72 73 74 75 76 77 78 79 80

ANS D A C B A B B C C A

Q 81 82 83 84 85 86 87 88 89 90

ANS C B B A C D A D C A

Q 91 92 93 94 95 96 97 98 99 100

85

ANS B A D C A B C D B C

Q 101 102 103 104 105 106 107 108 109 110

ANS B B A D D B B D A D

Q 111 112 113 114 115 116 117 118 119 120

ANS C C A D A C B A D B

Q 121 122 123 124 125 126 127 128 129 130

ANS D A A A B A B A C A

Q 131 132 133 134 135 136 137 138 139 140

ANS A B A D D C B D B D

Q 141 142 143 144 145 146 147 148 149 150

ANS B D B B C A D A B A

86

ECONOMY, BANKING AND FINANCE

1 Who is the current Chairman of Banks Board Bureau (BBB)? a) Vinod Rai b) Bhanu Pratap Sharma.

c) Arundhati Bhattacharya d) None of the above 2 What is India’s rank in Ease of Doing Business?

a) 132 b) 130

c) 100 d) 101 3 Which of the following has won UN Award for excellence in promoting

investments sustainable Development?

a) Invest India b) APIIDC

c) SIDBI d) NHB 4 PMI is an indicator of business activity-both in the manufacturing and services

sectors. What is the full form of PMI?

a) Producers Marketing Index b) Production Managers Index

c) Purchase Manager’s Index d) Purchase and Marketing Index 5 Govt of India has launched portal for grant of MSME loans within 59 minutes.

What is the ceiling for loan?

a) Rs.1 cr b) Rs. 1.5 cr

c) Rs. 0.50 cr d) Rs.0.10 cr 6 IIP is an indicator of industrial production. What IIP stands for?

a) Index of Incremental production b) Index of Industrial production

c) Index of Industrial Parameter d) Index of Indian Production 7 As per report by International Air Transport Association (IATA), what is India’s

position in Global Aviation repot?

a) First b) Second

c) Fifth d) Seventh 8 World Economic Forum has launched recently Center for Fourth Industrial

Revolution in India. The Center is based in _______________

a) Maharastra b) Andhra Pradesh

c) Telangana d) Karnataka 9 Which of the following is not one of 8 core industries in India?

a) Coal b) Cement

c) Steel d) Software 10 The rupee denominated bonds through which Indian entities can raise money

from foreign markets in rupee and not in foreign currency are called____

a) Masala Bonds b) Indian Bonds

c) Junk Bonds d) Rupee Bonds 11 India Post Payment Bank(IPPB) has entered into strategic partnership

with_______ to provide life insurance solutions.

a) SBI Life b) LIC of India

c) Royal Sundaram d) Bajaj Allianz 12 Govt announced proposal for amalgamation of Dena Bank and Vijaya Bank with

____

a) Andhra Bank b) Punjab National Bank

c) Bank of Baroda d) Syndicate Bank

87

13 According to RBI data, which country was top source of Foreign Direct Investment (FDI) into India for FY’18.

a) Singapore b) Mauritius

c) Malaysia d) China 14 Who is elected as new Chairman of IBA for 2018-19?

a) Suniil Mehta, MD and CEO of PNB b) Dina Bandhu Mahapatra, BOI

c) Rajansih Kumar, Chairman SBI d) Shyam Srinivasan, MD, Federal Bank

15 Prompt Corrective Action(PCA) framework is a tool used to monitor the

performance of the bank. This measure is invoked by_____

a) Govt of India b) RBI

c) IMF d) SEBI 16 Cabinet Committee on Economic Affairs (CCEA) has recently approved creation of

FAIDF recently. What is FAIDF?

a) Food and Aqua Infrastructure

Development Fund b) Fisheries and Aquaculture

Infrastructure Development Fund

c) Fish and Animal Infrastructure Development Fund

d) Food and Aqua Irrigation development Finance

17 Unified Payments Interface (UPI) is launched by______ a) IDRBT b) SEBI

c) SBI d) NPCI 18 Which Bank is first to introduce IRIS authentication for Adahar based

transactions?

a) SBI b) ICICI

c) Axis d) Canara 19 Which Bank has launched Multiple Option Payment Acceptance Device (MOPAD)?

a) HDFC b) SBI

c) Axis d) ICICI 20 What is the amount the Union Government had announced towards capital

infusion programme for PSBs?

a) Rs.1.50 lakh crore b) Rs.1.75 lakh crore

c) Rs.2.11 lakh crore d) Rs.3.11lakh crore 21 What is maximum remittance can be made by individual under Liberalized

Remittance scheme?

a) $ 200000 b) $ 150000

c) $ 225000 d) $ 250000 22 What is the current RBI’s Repo rate?

a) 6.5% b) 6.75%

c) 6.25% d) 6.00% 23 What is current RBI’s Rev Repo rate?

a) 6.75% b) 6%

c) 6.25% d) 6.50% 24 What is periodicity at which Monetary policy is reviewed by RBI ?

a) Quarterly b) Monthly

c) Bi-Monthly d) Half Yearly 25 What is current CRR?

88

a) 3.5% b) 5%

c) 4.5% d) 4% 26 RBI has deferred adoption of Indiana Accounting standard (Ind AS) by

commercial banks till _____

a) April 2020 b) April 2019

c) April 2025 d) April 2021

27 Which committee was constituted by RBI to look into bad loans, incidence of frauds, effectiveness of audits in the wake up of fraud in PNB?

a) Y H Malegam Committee b) Janak Raj Committee

c) Chandan Sinha Committee d) A K Pandey 28 Which is the bank recently added to the list of D-SIB( Domestic Systemically

Important Banks) by RBI?

a) Axis b) HDFC Bank

c) Canara d) Bank of Baroda 29 International Yoga Day is celebrated on ____?

a) 21.06.18 b) 01.05.18

c) 01.07.18 d) 01.10.18 30 What is interest rate to be paid by the bank to the depositors/claimants on

unclaimed interest bearing deposit amount transferred to DEAF( Depositors Education and Awareness fund) w.e.f 01.07.2018 as per RBI’s latest amendment.

a) 4% simple interest b) 3 % simple interest

c) 3.5% simple interest d) 5% simple interest 31 Who has been appointed to head inquiry into the conflict of allegations against its

ex CEO, Chanda Kochar

a) Vinod Rai b) Justice B N Srikrishna

c) A K Pandey d) None of the above 32 Which country approached Indian Govt for having rupee trade and a convertible

rupee a/c with SBI after USA imposed sanctioned it?

a) North korea b) China

c) Mexico d) Venezuela 33 Which Telecom company has SBI entered into digital partnership to increase its

digital customer base

a) Reliance JIO b) Airtel

c) Vodafone d) BSNL 34 Who is SEBI Chairman?

a) M Damodaran b) M D Sriram

c) U K Sinha d) Ajay Tyagi 35 Which payment bank has started its operations on 01.09.18

a) India Post Payment Bank b) Airtel

c) Paytm d) Jip Payment Bank 36 Who conducts Annual Financial Inspection(AFI) of the Banks?

a) RBI b) DFS, MOF

c) SEBI d) WORLD BANK 37 Which of the following is the health insurance scheme announced in the budget?

a) Bharat Bhima b) Bhima Bharat

89

c) Ayushman Bharat d) Ayush Bhima 38 Name of the project introduced by SBI to take advantage of growing e-

commerce?

a) Project Vivek b) Project Shikhar

c) Project Vijay d) YONO 39 Additional Capital to be provided by D-SIBs over and above the mandated

requirement under BASEL III

a) 0.50% b) 0.40%

c) 0.25% d) 0.60% 40 Target inflation rate set by RBI is __________

a) 4% b) 3%

c) 4%-5% d) 5% 41 Who has left the post of Chief Economic Advisor to the Govt of India during Jun

2018?

a) Raghuram Rajan b) Aravind Subramanian

c) Sanjeev Sanya d) None of the above 42 Non CTS will be accepted in CTS clearing system upto ______

a) 01.01.2019 b) 01.01.2020

c) 01.01.2021 d) 01.06.2019 43 LAF is the monetary policy tool used by RBI that allows banks to borrow money

through repurchase agreements. What is full form of LAF?

a) Liquidity Adjustment Facility b) Liquidity Augment Facility

c) Liquidity Amendment Facility d) Liquidity Adjustment Factor 44 Which of the following is ranked as India’s most patriotic brand?

a) Tata Sons b) Reliance

c) SBI d) None of the above 45 Which was the first case to be resolved under Insolvency and Bankruptcy Code?

a) Kingfisher Airlines b) Essar Steel

c) Alok Industries d) Bhushan Steel 46 Which company has taken over Bhushan Steel under IBC?

a) Tata Steel b) JSW steel

c) Reliance Jio d) Essar Steel 47 Which country has scrapped GST within 3 years of its roll out?

a) Singapore b) Malaysia

c) Srilanka d) Maldives 48 Which of the following operates Pradhan Manthri Vaya Vandan Yojana?

a) LIC of India b) SBI

c) IRDA d) National Insurance Company 49 Rajiv Mehrishi is___________

a) SEBI Chairman b) CAG

c) IBA Chairman d) RBI Governer 50 Estimated fiscal deficit target in the budget for 2018-19 is ____

a) 3.3% b) 4.5%

c) 4% d) 4.3% 51 Which agency replaced Planning Commission?

a) Digital India b) Atal Innovation Mission

90

c) NITI Ayog d) PM Ayog 52 The Chairman of NITI Ayog?

a) Finance Minister b) President of India

c) Prime Minister d) Vice President of India

91

KEY TO MCQ:

Q 1 2 3 4 5 6 7 8 9 10

ANS B C A C A B D A D A

Q 11 12 13 14 15 16 17 18 19 20

ANS D C B A B B D C B C

Q 21 22 23 24 25 26 27 28 29 30

ANS D A C C D B A B A C

Q 31 32 33 34 35 36 37 38 39 40

ANS B D A D A A C B D A

Q 41 42 43 44 45 46 47 48 49 50

ANS B A A C D A B A B A

Q 51 52

ANS C C

92

ECONOMY, BANKING AND FINANCE

1 __________allocates saving efficiently in an economy to ultimate users either for investment in real assets or for consumption

a) Economic system b) Financial system

c) Banking System d) Market system

2 Which of the following is not the regulatory institutions in Indian Financial system

a) RBI b) SEBI

c) CIBIL d) IRDA

3 ___________is regarded as a queen of Indian financial system

a) SEBI b) Finance Ministry

c) RBI d) BSE

4 ________represents claims for the payment of sum of money sometimes in the

future and/or periodic payment in the form of interest or dividend

a) Physical asset b) Fixed Asset

c) Financial asset d) None of the above

5 SEBI was established in ___

a) 1988 b) 1985

c) 1991 d) 1990

6 RBI started functioning on_____

a) 01.04.1935 b) 01.04.1948

c) 01.04.1982 d) 01.04.1945

7 National Housing Bank is fully owned subsidiary of ____

a) HDFC b) RBI

c) HSBC d) HUDCO

8 ____________has the statutory powers to regulate and promote the Indian Capital Market

a) Registrar of issue b) SEBI

c) Merchant Banks d) RBI

9 Any company making a public issue of value more than Rs.__________is

required to file draft offer document with SEBI.

a) 100 lakh b) 25 lakh

c) 50 lakh d) 10 lakh

10 RBI is the lender of last resort for________

a) Central Govt b) Stock Market

c) State Govt d) Commercial Banks

11 The Market regulator of Indian Capital Market is_______

a) RBI b) DHFI

c) SEBI d) STCI

12 Money market deals with ___________instruments

a) Long term b) Medium term

c) Short term d) All of the above

13 The market for extremely short period( overnight) is called

a) Call money b) T Bill market

c) Money at short notice d) G Sec Market

93

14 __________acts as an intermediary between Govt and money market

a) Commercial Banks b) RBI

c) SEBI d) All of the above

15 ______are an important instrument of short term borrowing by the Govt

a) NSC b) Bonds

c) Treasury Bills d) All of the above

16 Accommodation bills are also known as __________bills

a) Kite bills b) Supply bills

c) Paper Bills d) Both A & C

17 __________is an unsecured short term promissory note issued by credit worthy companies.

a) Repo b) IBPC

c) Commercial Paper d) Certificate of Deposit

18 _____________is the first development financial institution in India

a) IDBI b) IFCI

c) ICICI d) RBI

19 ___________known as Brettenwood twins

a) IDBI and IFCI b) World Bank and IMF

c) IDBI and UTI d) RBI and SEBI

20 World Bank is also known as______

a) IMF b) IBRD

c) ADB d) UNICEF

21

The first bank in India to start factoring business is

a) Canara bank b) Punjab National Bank

c) SBI d) Allahabad Bank

22 Money lent in the inter-bank market for 15 days or more is called -----------

a) Call money b) Money at short notice

c) Term Money d) All the above

23 Call money is a loan given for a period of_________

a) 15 days b) 1day

c) 30 days d) 1 year

24 SENSEX is the index of

a) BSE b) OTCEI

c) NSE d) CSE

25 NIFTY is the index of _____

a) BSE b) OTCEI

c) NSE d) CSE

26 The first Indian Equity index is_______

a) Nifty b) Dollex

c) Sensex d) Defty

27 _________also called G-secs

a) Gold traded Fund b) Govt Securities

c) General Securities d) Growth oriented funds

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28 ______are negotiable instrument by an overseas depository

a) ADR b) IDR

c) GDR d) Any of the above

29 ESOP stands for_______

a) Equity Share option plan b) Employee stock option plan

c) Equity shares option premium d) Equity stock option plan

30 The small investor gateway to enter into big companies is___

a) Equity shares b) Bonds

c) Preference shares d) Mutual fund

31 ————— fund invests in highly liquid securities like commercial paper

a) Open ended fund b) Balanced Fund

c) Close ended fund d) Money market mutual fund

32 The process in which illiquid assets are converted into marketable securities is

known as_____

a) Mutualisation b) Rematerialisation

c) Dematerialization d) Securitization

33 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act passed in the year_________

a) 1992 b) 2005

c) 2002 d) 2000

34 ASBA….stands for

a) Application Supported by Blocked Amount

b) Automated Security Borrowing Arrangement

c) Active Securities Buying Agreement

d) Automatic Security Buying Assistance

35 Which of the following is not a credit rating agency?

a) CRISIL b) CARE

c) ICRA d) None of the above

36 _________variety of mutual fund is known as “Nest Eggs”?

a) Balanced Funds b) Fund of Funds

c) Money Market Mutual Fund d) Growth Funds

37 The corpus of funds and its duration is fixed in case of _____fund

a) Open ended b) Close Ended

c) Balanced d) Income Fund

38 Currency notes of rupee one and other lower subsidiary coins are issued by____

a) RBI b) Ministry of Finance, GOI

c) Commercial Banks d) Bank note press

39 ----------- is dealing in securities done by those who having access to price sensitive information.

a) Margin Trading b) Price rigging

c) Inside Trading d) Wash Sales

40 “Uberrimae Fidei” means

a) Indemnity b) Good Faith

c) Insurable Interest d) Mitigation of Loss

41 ______is a financial service which is pooling risks of people

a) Mutual Fund b) Insurance

95

c) Venture capital d) All of the above

42 In India Insurance business is regulated by

a) IRBI b) RBI

c) IRDA d) IRDP

43 Federal Reserve is the central Bank of

a) UK b) USA

c) Japan d) China

44 Sukanya Samrudhi Yojana related to

a) Women b) Men

c) Girls d) Boys

45 Renminbi is currency of _______

a) Japan b) Singpore

c) Indonesia d) China

46 Which of the following is not a direct tax?

a) Income Tax b) Wealth Tax

c) GST d) Corporation tax

47 What is the full form ‘CORE’ in core banking services?

a) Channel of Rupee Exchange b) Customer online Realtime

Exchange

c) Centralized Online Real time

Exchange

d) Customer online Rupee Exchange

48 Which Bank credit card issue has announced the launch of ELA( Electronic Live Assistant) , a virtual assistant for customer support and services.

a) SBI b) HDFC

c) BoB d) Axis

49 According to SEBI, investors will be permitted to purchase mutual funds worth upto Rs.________ through digital wallets.

a) 150000 b) 50000

c) 100000 d) 25000

50 BRBNMPL is a wholly owned subsidiary of RBI which prints banknotes(INR) for

the RBI. BRBNMPL stands for_____

a) Bharatiya Reserve Bank Note

Mudran Private Limited

b) Bharatiya Reserve Bank National

Mudran Private Limited

c) Bharatiya Reserve Bank Note Mudran Public Limited

d) Bharatiya Reserve Bank Note Management Private Limited

51 DICGC was established for the purpose of providing insurance of deposits. What is maximum deposit amount insured by DICGC?



52 In which year the Imperial Bank of India rechristened as SBI?

a) 1957 b) 1955

c) 1965 d) 1962

53 The share of State Govt in the capital of Regional Rural Bank is___

a) 50% b) 35%

c) 25% d) 15%

54 In which denomination were India’s first bimetallic coins issued in the year 2009?

96

a) Rs.100 b) Rs.5

c) Rs.10 d) Rs.1

55 ATMs that are owned and managed by non-banking entities are known as ___

a) Red Label ATMs b) White Label ATMs

c) Green Label ATMs d) Blue Label ATMs

56 Which of the following is not the function of RBI?

a) Acting as Banker to the Govt b) Keeping of Foreign Exchange Reserves

c) Issuing of one rupee notes and

coins

d) Regulating credit in the country

57 Which of the following is the apex institution which handles refinance for

agriculture and rural development in India?

a) RBI b) SIDBI

c) SEBI d) NABARD

58 Expand the term LIBOR as used in financial banking sectors?

a) Local Indian Offered Rate b) London Interbank offered rate

c) Liberal International Bank official Rate

d) London-India Bureau of Regulations

59 Which is one of the country’s large private banks whose name has been officially changed to The Axis Bank Ltd?

a) HDFC Bank b) Lord Krishna Bank

c) Centurian Bank d) UTI Bank

60 Regional Rural Banks are sponsored by

a) Nationalized Commercial Bank b) RBI

c) SBI d) GOI

61 The Imperial Bank of India, after its nationalization came to be known as____

a) RBI b) UBI

c) Indian Overseas Bank d) SBI

62 In which year (prior to 2016) were the high value currency notes demonetized?

a) 1978 b) 1977

c) 1976 d) 1979

63 The head quarters of European Central Bank which administers currency EURO

are in____

a) Paris b) Frankfurt

c) London d) Geneva

64 The rate at which the RBI lends money to commercial banks is known as___

a) Repo rate b) Base rate

c) Bank rate d) Rev Repo Rate

65 The New 2000 rupee note has the image of _____

a) INS Vikramaditya b) Mangalyaan

c) Red Fort d) Thiruvalluvar

66 What is the minimum limit for an RTGS transaction?

a) Rs.10000 b) Rs.20000

c) Rs.100000 d) Rs.200000

67 National Institute of Bank Management( NIBM) is located in____

a) Mumbai b) New Delhi

97

c) Chandigarh d) Pune

68 The ratio of Bank’s capital to its assets is known as____

a) Statutory Liquidity Ratio b) Cash Reserve Ratio

c) Capital Adequacy Ratio d) Debt-Equity Ratio

69 The head quarters of Asian Development Bank of located at____

a) Manila b) Jakarta

c) Singapore d) Bangkok

70 The minimum percentage of demand and time liabilities which a bank has to maintain in the form of liquid assets is known as_____

a) Statutory Liquidity Ratio b) Cash Reserve Ratio

c) Capital Adequacy Ratio d) Debt-Equity Ratio

71 Prathama Grameena Bank, the RRB was sponsored by______

a) Syndicate Bank b) SBI

c) PNB d) Canara Bank

72 The new 200 rupee note has the image of____

a) Jantar Matar b) Sanchi Stoopa

c) Hampi Chariot d) Sun Temple

73 What is the share of Central Govt in the capital of RRBs

a) 25% b) 30%

c) 40% d) 50%

74 Which of the following established the first Mutual Fund in India?

a) SBI b) LIC

c) GIC d) UTI

75 Which was the first bank to introduce Internet Banking in Inida?

a) SBI b) HDFC

c) ICICI d) Punjab National Bank

76 MDR with respect of banking stands for____

a) Multiple Discount Rate b) Merchant Debit Ratio

c) Merchant Discount Rate d) Market Discount Ratio

77 Which of the following countries has pounds as its currency?

a) Bahrain b) Egypt

c) Iraq d) Jordan

78 Whose signatures are found on one rupee note in India?

a) Governor, RBI b) Finance Minister, GoI

c) Finance Secretary, MoF, GoI d) One rupee does not have any signature

79 The New 500 rupee note has the image of _____

a) Mangalyan b) Red Fort

c) Taj Mahal d) Tiger

80 Which of the following is a foreign Bank in India?

a) Catholic Syrian Bank b) Citi Bank

c) Federal Bank d) City Union Bank

81 Fiscal Policy in India is formulated by_____

a) RBI b) The Planning Commssion

c) The Finance Ministry d) SEBI

82 The term stagflation refers to situation where___

98

a) Growth has not relation with the change of prices

b) Rate of growth and prices both are decreasing.

c) Rate of growth is faster than the rate of price increase

d) Rate of growth is slower than the rate of price increase

83 The draft of the Five Year Plans in India is approved by the

a) National Development Council b) Planning Commission

c) National Productivity Council d) Ministry of Finance

84 An essential attribute of Inflation is ____

a) The absence of the black market b) The presence of black market

c) Increase in prices d) Fall in production

85 The Hundred Rupee currency note in India bears the signature of ____

a) Finance Minister of India b) Prime Minister of India

c) President of India d) RBI Governor

86 Expand BIFR

a) Board for Industrial and Financial Reconstruction

b) Bureau for Industrial and Financial Reconstruction

c) Board for Investment and Financial Reconstruction

d) Bureau for Investment and Financial Reconstruction

87 Rural Infrastructure Development fund (RIDF) is financed by

a) Selected group of public Sector Banks

b) Ministry of Rural Development

c) Reserve Bank of India d) NABARD

88 The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921

to form

a) RBI b) SBI

c) Bank of India d) Imperial Bank of India

89 The Monetary Policy of India is announced by

a) Prime Minister b) Governor of RBI

c) Union Finance Minister d) Union Commerce Minister

90 What is the full form of NDTL?

a) Net Demand and Term Liabilities b) Net Demand and Time Liabilities

c) New Demand and Term Liabilities d) Net Demand and Time Liquidity

91 What is the correct expansion of the term MUDRA?

a) Micro Undertakings Development and Refinance Authority

b) Micro Units Development and Refinance Agency

c) Micro Undertakings Development and Restructuring Agency

d) Mini Units Development and Restructuring Authority

92 Banking Ombudsman entertains complaints involving

a) Delay in collection of cheques b) Deficiency in cash transactions

c) Non-issue of demand drafts d) all of the above

93 Expand “SHPI ".

a) State Bank Heritage Private

Institute

b) SBI Handicapped Standards Board

c) Self Help Promotion Institution d) None of the above

94 Banking Code & Standards Board of India (BSSBI) has been set up for providing

details of banking and to create awareness of banking. BCSBI has been set up by

99

a) SBI b) RBI

c) Ministry of Finance d) None of the above

95 Which of the following rates decided by the RBI is called "Policy Rate "?

a) Lending Rate b) Cash Reserve Ratio

c) Bank Rate d) Deposit Rate

96 In the Balance Sheet of a bank, contingent liabilities are shown as____

a) on the liabilities side of the Balance Sheet

b) by way of a deduction from the assets

c) by way of a footnote d) in the Schedule on the assets side

of Balance Sheet

97 A Scheduled bank is the one which_____

a) conforms to the requirement of schedule III of the Banking Regulation Act, 1949

b) has been declared as a scheduled bank by the Government of India

c) has deposits exceeding Rs.10 Cr d) has its name added to the second scheduled of the Reserve Bank of

India Act, 1934

98 "Bulls and Bears" term is used in

a) Bullion Markets b) Vegetable Markets

c) Stock Market d) Commodity Markets

99 Computer system failure is classified in the risk category of

a) Credit Risk b) Operational Risk

c) Technology Risk d) Security Risk

100 Bank of International Settlement( BIS) is headquartered in _____

a) Manila b) Chicago

b) Basel, Switzerland d) All the above

100

KEY TO MCQ:

Q 1 2 3 4 5 6 7 8 9 10

ANS C C C C A A B B C D

Q 11 12 13 14 15 16 17 18 19 20

ANS C C A B C A C B B B

Q 21 22 23 24 25 26 27 28 29 30

ANS C C B A C C B D B D

Q 31 32 33 34 35 36 37 38 39 40

ANS D D C A D B B B C B

Q 41 42 43 44 45 46 47 48 49 50

ANS B C B C D C C A B A

Q 51 52 53 54 55 56 57 58 59 60

ANS C B D C B C D B D A

Q 61 62 63 64 65 66 67 68 69 70

ANS D A B C B D D C A B

101

Q 71 72 73 74 75 76 77 78 79 80

ANS A B D D C C B C B B

Q 81 82 83 84 85 86 87 88 89 90

ANS C D A C D A D D B B

Q 91 92 93 94 95 96 97 98 99 100

ANS B D C B B C D C B B

102

Multiple Choice Questions on Credit C&I

1 Which among the following is an unsecured money market instrument used by

highly rated corporate borrowers to raise short-term funds

a) Bond Paper b) Commercial Paper

c) Promissory Note d) Share Certificate

2 Which among the following is the eligible criteria to issue Commercial Paper

a) The tangible net worth as per the

latest audited balance sheet is not less than Rs.4 crores

b) The company enjoying working

capital limit sanctioned by bank and is classified as a Standard Asset

c) Minimum credit rating from any Credit Rating Agencies i.e., CRISIL, ICRA, CARE India Ratings

d) All the above

3 What is meant by Tangible net worth

a) Paid-up capital b) Free Reserves

c) Paid-up capital plus Free Reserves

d) Paid-up capital plus Free Reserves less Intangibles

4 What is the minimum period for which a CP can be issued

a) 4 days b) 5 days

c) 6 days d) 7 days

5 What is the maximum period for which a CP can be issued


c) 18 months d) 24 months

6 Minimum Size of Commercial Paper is



7 CP can be issued either in the form of

a) Promissory note b) Dematerialised form

c) Both (a) and (b) above d) None

8 Who among the following can act as an Issuing and Paying Agent (IPA) for issuance of CPs

a) Scheduled Commercial Bank b) Non Scheduled commercial bank

c) Both (a) and (b) above d) None

9 Which of the following is correct in respect of eligibility for Bridge loans

a) Existing borrowers with CRA of SB-

7 and above

b) New companies promoted by

existing borrowers with CRA of SB-7 and above

c) New companies promoted by

MNCs or Indian corporates of high standing who

are not our customers

d) All the above

10 What is the maximum period prescribed by RBI for sanction of Bridge loans

a) 6 months b) 1 year


103

11 What is the minimum margin in respect of Bridge loans

a) 20% b) 25%

c) 30% d) 33.33%

12 What is the amount of Processing fee in respect of Bridge loan

a) Rs 2.50 lacs b) Rs 5.00 lacs

c) Rs 7.50 lacs d) Rs 10.00 lacs

13 Which among the following is correct in respect of Date of Commencement of Commercial Operations [DCCO]

a) It is the date specified at the time

of financial closure

b) It is documented in Common Loan

Agreement

c) It marks the end of the implementation period and start of the repayment or moratorium

d) All the above

14 Deferment of DCCO and consequential shift in repayment schedule will not be treated as restructuring under which of the following conditions

a) The revised DCCO falls within two years from Original DCCO in respect of infrastructure projects

b) The revised DCCO falls within one year from Original DCCO in respect of non infrastructure

projects including CRE

c) Both (a) and (b) d) None

15 What is the provision required in respect of Restructured Standard advances due

to shift in DCCO

a) 0.25% b) 0.40%

c) 5.00% d) 7.50%

16 Cost of any provisioning in Bank books due to delay in DCCO should be paid by

a) Borrower b) Bank

c) RBI d) Need not be paid

17 Concept of DCCO is not applicable to which of the following

a) City Gas Distribution Network b) Telecom Service Provider

c) Power Generation d) Roads & Bridges

18 Corporate Loan can be sanctioned in the form of

a) Cash Credit b) Term Loan

c) Both Cash Credit and Term Loan d) None of the above

19 Which among the following is the eligibility criteria for availing Corporate Loan

a) Borrowers with CRA of SB1 to SB 5 if no External Credit Rating is available

b) Borrowers with CRA of SB 6 to SB 10, if having ECR of Investment Grade

c) Maharatna and Navaratna PSUs irrespective of credit rating

d) All the above

20 Maximum, how many Corporate Loans can be outstanding at any point of time,

for shoring up of NWC

a) 1 b) 2

c) 3 d) 4

104

21 Maximum no of Corporate Loans that can be outstanding at any point of time per borrower

a) 1 b) 2

c) 3 d) 4

22 For availing Corporate Loan, what should be the minimum FACR

a) 1.20 b) 1.25

c) 1.30 d) 1.35

23 For availing Corporate Loan, what should be the minimum DSCR

a) 1.20 b) 1.25

c) 1.30 d) 1.35

24 For availing Corporate Loan, what should be the minimum Interest Coverage

Ratio

a) 1.25 b) 1.50

c) 1.75 d) 2.00

25 Who is the competent authority for permitting deviation in respect of minimum levels in respect of FACR, DSCR and Interest Coverage Ratio (for availing

Corporate Loan)

a) CGM b) DMD

c) MD d) No deviation is permitted

26 What can be maximum cap on Gross Block, if a Corporate Loan is sanctioned for meeting Ongoing capex

a) 10% b) 20%

c) 25% d) 30%

27 Corporate Loan can be considered for which of the following purposes

a) Shoring up of NWC b) Repayment of high cost debt

c) Ongoing capex inclg Research and Development expenditure

d) All the above

28 What is the minimum amount of loan that can be sanctioned under Corporate Loan



29 What is the maximum amount of loan that can be sanctioned under Corporate Loan in respect of Non-Corporate borrowers

a) Rs 10 cr b) Rs 15 cr

c) Rs 20 cr d) Rs 50 cr

30 What is the maximum amount of loan that can be sanctioned under Corporate

Loan in respect of Corporate borrowers


c) As per Substantial Exposure norms d) No ceiling

31 What is the Maximum repayment period in respect of term loan sanctioned under Corporate Loan



32 ……………is the credit availed by a buyer-importer from overseas bank and

105

financial institutions for payment of his Imports on due date

a) Buyers Credit b) Suppliers Credit

c) Usance Credit d) None

33 In respect of Buyers Credit, who will meet the Capital Requirement

a) Domestic Branch b) Foreign Office

c) GMU d) IBG

34 ECB can be availed only under

a) Automatic route b) Approval route


35 In respect of ECB, for inclusion of a company in the Exposure List, which of the following is essential

a) Minimum TNW of Rs. 200 cr as on Last audited balance sheet date , which is not more than 12 months

old

b) Three years minimum banking relationship with SBI with good Capital Market perception

c) CRA rating not below SB7 and

External Rating should not be below A

d) All the above

36 Investments by an Indian Corporate in joint ventures and WoS abroad are

permitted under ……….. of RBI

a) Automatic route b) Approval route


37 All Foreign Currency Term Loans have to be reviewed at …………..intervals

a) Monthly b) Quarterly

c) Half Yearly d) Annual

38 Which among the following is correct in respect of Foreign Currency loans from FCNB Funds

a) Loans can be given for personal purposes

b) Loans can be given for acquisition of consumer durables

c) Loans can be given for WC and TL

purposes

d) All the above

39 FCNB loans can be granted to

a) Manufacturing units only b) Trading units only

c) Both Manufacturing and Trading units

d) None

40 What is the maximum period upto which bills can be discounted under Export Bill Rediscounting Scheme

a) 3 months from the date of shipment

b) 6 months from the date of shipment

c) 9 months from the date of

shipment

d) 12 months from the date of

shipment

41 Which of the following should not be financed under financing of film production

a) Production of Hindi/Regional language/English movies

b) Production of Documentary Films, short story films, TV serials, etc

c) Dubbing and distribution of

foreign/ Indian films

d) None

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42 Loans under financing of film production can be extended as

a) Demand loans b) Short term loans

c) Long term loans d) (a) and (c) only

43 Total no.of loans per producer under financing of film production should not

exceed

a) Two b) Three

c) Four d) Five

44 Who among the following is eligible to avail finance under film production

a) Corporate entity promoted by

reputed producers

b) Corporate with positive TNW

c) Production venture backed by

established directors and technicians

d) All the above

45 What is the maximum amount of finance for each project under film production


c) Rs 15 cr d) Rs 20 cr

46 What is the margin stipulated for finance under film production

a) 25% b) 35%

c) 50% d) 20%

47 What is the maximum percentage of penalty that can be levied for prepayment of loan under film production

a) 1% b) 2%

c) 5% d) No penalty

48 Which of the following is correct regarding repayment of loan sanctioned for film production

a) The repayment should be linked to

the cash accrual

b) Repayment has to be completed

before release of the movie

c) Repayment period should normally

not exceed two years.

d) All the above

49 What is the periodicity of inspection in respect of loans under film production

a) Monthly b) Waived

c) Quarterly d) Fortnightly

50 Trade and export of tobacco in India is regulated by Tobacco Board through

a) Auction b) Market yard

c) Haats d) All the above

51 Financing by Banks is restricted to which kind of Tobacco

a) Flue Cured Virginia (FCV) tobacco b) Non Flue Cured Virginia (FCV) tobacco

c) Both d) None

52 Who fixes the minimum price of tobacco

a) Grower b) Tobacco Board

c) Bank d) RBI

53 Credit Risk Assessment (CRA) exercised has to be done in respect of

a) Standard Account b) Sub Standard Account


54 CRA is mandatory for all accounts (Wherever scoring models are in place) with

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aggregate exposure of

a) Rs. 50.00 Lacs and above b) Rs. 25.00 Lacs and above

c) Rs. 100.00 Lacs and above d) Rs. 500.00 Lacs and above

55 Wherever scoring models are not in place, CRA has to be carried out for

exposures of

a) Rs. 50.00 Lacs and above b) Rs. 25.00 Lacs and above

c) Rs. 100.00 Lacs and above d) Rs. 500.00 Lacs and above

56 Facility Rating is applicable in respect of

a) Regular Model b) Simplified Model


57 Under CRA, Regular Model is applicable for exposures

a) Rs.0.25 crore to Rs.5.00 crore b) Rs.0.50 crore to Rs.5.00 crore

c) Over Rs.5.00 crore d) All the above

58 Under CRA, Simplified Model is applicable for exposures

a) Rs.0.25 crore to Rs.5.00 crore b) Rs.0.10 crore to Rs.5.00 crore

c) Over Rs.5.00 crore d) All the above

59 In case of consortium advances, selection of CRA model is based on exposure levels of

a) Our share b) Banking exposure

c) Industry exposure d) None

60 For bill discounting limits under Letters of Credit sanctioned outside the total indebtedness, risk rating under CRA is

a) Required b) Not required

c) Can’t say as it depends upon the nature of unit


61 Which among the following is an International Credit Rating Agency

a) FITCH b) Moody

c) Standard & Poor d) All the above

62 Which among the following is a domestic Credit Rating Agency

a) CARE Limited, CRISIL Limited b) India Ratings and Research Private

Limited (India Ratings), ICRA Limited

c) Brickwork Ratings India Pvt. Ltd. (Brickwork), SME Rating Agency of India Limited(SMERA), Infomerics

d) All the above

63 What is the applicable Risk Weight in respect of unit rated AAA

a) 20% b) 30%

c) 50% d) 100%

64 What is the applicable Risk Weight in respect of unit rated AA

a) 20% b) 30%

c) 50% d) 100%

65 What is the applicable Risk Weight in respect of unit rated A

a) 20% b) 30%

c) 50% d) 100%

66 What is the applicable Risk Weight in respect of unit rated BBB

a) 20% b) 30%

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c) 50% d) 100%

67 What is the applicable Risk Weight in respect of unit rated BB & below

a) 120% b) 130%

c) 150% d) 100%

68 What is the additional Score under New CRA Models in respect of unit rated AAA

a) 5.00 b) 3.50

c) 2.00 d) 1.00

69 What is the additional Score under New CRA Models in respect of unit rated AA

a) 5.00 b) 3.50

c) 2.00 d) 1.00

70 What is the additional Score under New CRA Models in respect of unit rated A

a) 5.00 b) 3.50

c) 2.00 d) 1.00

71 What is the additional Score under New CRA Models in respect of unit rated BBB

a) 5.00 b) 3.50

c) 2.00 d) 1.00

72 What is the additional Score under New CRA Models in respect of unit rated BB &

below

a) 5.00 b) Zero

c) 2.00 d) 1.00

73 Country Risk is assumed when ……% or more of the borrower’s cashflow or assets are located outside India

a) 20% b) 30%

c) 25% d) 15%

74 CRA proposal to be signed by

a) Appraising and recommending official

b) Assessing official

c) Both (a) and (b) d) Appraising official

75 Dynamic Review of internal Ratings is applicable in respect of

a) Total exposure of Rs.10 Crores & above with triggers

b) Total exposures of Rs.500 Crs & above without triggers


76 CRA Model for Non Banking Finance Companies (NBFCs)/ Housing Finance

Companies (HFCs) is applicable for exposures

a) Rs.10 lacs and above b) Rs.25 lacs and above

c) Rs.50 lacs and above d) Rs.100 lacs and above

77 Reporting for Central Repository of Information on Large Credits (CRILC) is

applicable for all loan accounts

a) Upto Rs 5 crores b) Rs 5 cr and above

c) above Rs.5 crores d) above Rs.10 crores

78 Loan Rejections/CRA Slippages list is available in which site of SBI Times

a) CPPD b) CRPD

c) CRMD d) PBU

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79 Prescreening of prospective new connections for exposure Rs.5 cr and above has to be referred to

a) CRISIL b) Moody

c) Cubictree Technology Solutions

Pvt. Ltd

d) Any of the above

80 Central Fraud Registry is maintained by

a) SBI b) Govt of India

c) IBA d) RBI

81 Net Working Capital is

a) Current assets (-) Current liabilities b) Long Term Sources (-) Long Term Liabilities

c) Either (a) or (b) d) None

82 Working Capital Gap is

a) Total Current Assets (-) Other

Current Liabilities

b) Total Current Assets (-) Total

Current Liabilities

c) Total Assets (-) Current Liabilities d) Total Assets (-) Total Liabilities

83 ………… method is used for assessing WC finance for seasonal industries

a) Cash budget method b) Projected Balance Sheet Method

c) Nayak Committee d) Any of the above

84 Under Credit Monitoring Arrangement (CMA), information under Form I represents

a) Operating statement b) Analysis of balance sheet

c) Funds flow statement d) Particulars of existing/proposed limits from the banking system

85 Under Credit Monitoring Arrangement (CMA), information under Form II represents



86 Under Credit Monitoring Arrangement (CMA), information under Form III represents



87 Under Credit Monitoring Arrangement (CMA), information under Form IV represents


c) Comparative Statement of Current

Assets (CA) and Current Liabilities (CL)

d) Particulars of existing/proposed

limits from the banking system

88 Under Credit Monitoring Arrangement (CMA), information under Form V

represents


c) Funds flow statement d) Particulars of existing/proposed

110

limits from the banking system

89 Limits for purchase of bills drawn under LCs opened by first class banks will be assessed

a) Within ABF b) Outside ABF

c) Both d) None

90 Working Capital limits are valid for a period of ………. months from the date of

sanction

a) 01 b) 02

c) 03 d) 06

91 Term loan limits are valid for a period of ………. months from the date of sanction

a) 01 b) 02

c) 03 d) 06

92 LCs issued for purchase of machinery or capital goods to be backed by

a) Sanction of Term Loan b) Third party guarantee

c) Cash flow d) Working capital

93 What is the applicable Credit Conversion Factor (CCF) in respect of Financial Bank Guarantees

a) 20% b) 50%

c) 100% d) 75%

94 What is the applicable Credit Conversion Factor (CCF) in respect of Performance Bank Guarantees

a) 20% b) 50%

c) 100% d) 75%

95 What is the applicable Credit Conversion Factor (CCF) in respect of Documentary

Letter of Credit

a) 20% b) 50%

c) 100% d) 75%

96 Mobilisation advances should be classified as

a) Performance Bank Guarantees b) Financial Bank Guarantees

c) Either (a) or (b) d) Both (a) or (b)

97 Bid bonds on behalf of exporters should be classified as



98 Guarantees favouring Customs or Port Authorities for release of goods should be classified as



99 Security deposits/earnest money deposits for participating in tenders should be

classified as



100 Guarantees for disputed liabilities like Revenue Dues, litigation pending at Courts should be classified as


111


112

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS b d d d b a c a d b

Q 11 12 13 14 15 16 17 18 19 20

ANS b b d c c a b b d a

Q 21 22 23 24 25 26 27 28 29 30

ANS c b a b d b d b a c

Q 31 32 33 34 35 36 37 38 39 40

ANS c a b c d a d c c b

Q 41 42 43 44 45 46 47 48 49 50

ANS c d b d a c d d b a

Q 51 52 53 54 55 56 57 58 59 60

ANS a b a a b a c a a b

Q 61 62 63 64 65 66 67 68 69 70

ANS d d a b c d c a b c

Q 71 72 73 74 75 76 77 78 79 80

ANS d b c c c b c a c d

Q 81 82 83 84 85 86 87 88 89 90

ANS c a a d a b c c b c

Q 91 92 93 94 95 96 97 98 99 100

ANS d a c b a b a a a a

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C&I

1 In respect of grant of advances against shares, statutory provisions contained in -

________ and ______ of the Banking Regulation Act 1949 should be strictly observed.

a) Sections 91(2) and 90(3) b) Sections 19(2) and 19(3)

c) Sections 9(2) and 9(3) d) Sections 1(2) and 1(3)

2 No banking company shall, save as provided in sub-section 19(1) thereof, hold

shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding ______ percent of the paid up share capital of that company or _______ percent of its own paid up share capital and reserves, whichever is

less.

a) Twenty: twenty b) Ten: ten

c) Thirty; thirty d) Twenty: thirty

3 Shares held in SBI should not to be accepted by the branches as security for any loan inasmuch as sub-section 20(1)(a) of the Banking Regulation Act 1949

stipulates that no banking company shall, among other things, grant any loans or advances on the security of its own share.

a) The above statement is correct b) The above statement is partially

correct, as we can accept our own shares to certain percentage.

c) The are no such restrictions d) Banks are free to take a decision

4 Bank finance against shares should be considered looking into the nature, purpose and need for credit facilities ensuring that it is not for speculative and

other anti-social purposes; i.e., while lending, branches should be concerned with what the advances are for, rather than what the advances are against.

a) There are no such restrictions,

regarding purpose and need for credit

b) The above statement is correct

c) The sanctioning authority can finance for any purpose , but with the approval of DGM ( B&O)

d) The sanctioning authority can finance for any purpose , but with the approval of GM ( Network)

5 ____________________ are not eligible for loans against shares and debentures.

a) Individuals, firms b) Companies, LLPs

c) Trusts, Endowment Boards and firms

d) HUFs

6 No advance shall be granted against partly paid shares

a) There are no such restrictions, regarding purpose and need for

credit

b) The above statement is correct

c) The sanctioning authority can finance for any purpose , but

with the approval of DGM ( B&O)

d) The sanctioning authority can finance for any purpose , but with

the approval of GM ( Network)

7 1. RBI now permits advances against the shares of Stock Brokers.

2. Investment companies should not be given any loan for short or long term investments in shares and debentures

114

a) Both the statements are correct b) Only statement 1 is correct

c) Only statement 2 is correct

d) Both the statements are not correct

8 Branches can grant advances against security of units of mutual funds including

those of SBI Mutual Fund and subject to the following guidelines:

i) The units should be listed in the Stock Exchanges or repurchase facility for the units of mutual fund should be available at the time

of lending.

ii) The units should have completed the minimum lock-in-period

stipulated in the relevant scheme.

iii) The amount of advances should be linked to the Net Asset Value

(NAV)/ repurchase price or the market value, whichever is less

and not to the face value.

a) Only i is correct b) Only i and ii are correct

c) All the three are correct

d) None of the above are correct.

9 Branches can grant advances against security of units of mutual funds including those of SBI Mutual Fund and subject to the following guidelines:

i) The advance would attract the quantum and margin requirements as applicable to advance against shares and debenture. The margin should be calculated on the NAV/ repurchase price or market

value, whichever is less.

ii) A repayment period of three to five years, depending on the repayment capacity of the borrower, may be fixed but in any

case, the advance should be repaid before the end of the scheme

under which the units are issued.

iii) The advances should be purpose-oriented, taking into account the credit requirement of the investor. Advances should not be granted for subscribing to or boosting up the sales of another

scheme of the mutual funds or for the purchase of

shares/debentures/bonds.


c) All the three are correct d) None of the above is correct.

10 Demand loans against security of units of UTI other mutual funds can be granted to the Bank’s existing borrowers (under AGL/C&I/SIB market segments), who

have already availed of loans for productive purposes, for meeting short term mismatch in their cash flow. Such loans for a period not exceeding one year may

be sanctioned only after the branch concerned is satisfied about the capacity of the borrower to repay the loan within the stipulated period.

115

a) The above statement is correct b) Can be granted beyond 1 also but must be paid before 3 years

c) No such repayment period restrictions

d) Repayment period cannot be beyond 5 years

11 Branches should submit in the prescribed format (Annexure-SHARE-1) details of advances granted by them against shares/debentures/bonds and outstanding balance in the accounts as on the last reporting Friday of each quarter viz., June,

September, December and March. The returns should reach the BOD, Corporate Centre through their respective controlling offices not later than the ______ of the succeeding month of the quarter to which the data relate.

a) 10th b) 15th

c) 20th d) 25th

12 As per extant instructions ,investments in SBI Mutual Fund (SBIMF) can be

accepted as Collateral Security for the Fund Based (FB) and Non Fund Based

(NFB)

exposures taken by the Bank and treated as cash margin in case of NFB

exposures.

The policy has been revisited and it has been decided as under:

i. The value of collateral will be considered at 85% of the face value of units offered as security, uniformly for all accepted categories of

Schemes.

ii. The face value of units accepted as the equivalent of cash margin for

NFB exposures should be equal to 125% of the cash margin

stipulated.

iii. In respect of Hybrid Funds (those with minimum 65% investment in Debt portfolio), only the debt portion will be considered for

acceptance as collateral security/ cash margin.



d) None of the above are correct.

13 As per extant instructions ,investments in SBI Mutual Fund (SBIMF) can be

accepted as Collateral Security for the Fund Based (FB) and Non Fund Based

(NFB)

exposures taken by the Bank and treated as cash margin in case of NFB

exposures.

The policy has been revisited and it has been decided as under:

1. NAV of mutual funds as at the end of each calendar quarter should be tested mandatorily for determining the margin available. Borrowers must

be advised to supplement the short fall immediately, if NAV falls below the face value.

2. Operating units are advised to track NAV of Mutual Funds, updated on daily

basis in SBI Times and note the changes in the value of investments accepted as collateral security/ cash margin. Borrowers should be advised

to supplement the shortfall immediately, in those cases where NAV falls below the face value of units offered as security/margin

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3. Where margin money is tendered by way of MF instruments, the pricing should be suitably increased by 25 bps.


c) All the three are correct d) None of the above is correct.

14 In pursuance of National Housing Policy of ________ Government, Reserve Bank of India has been facilitating the flow of credit to housing sector.

a) Central b) State

c) Both of Central and State d) No such policy

15 RBI has advised that Banks could deploy their funds under the housing finance

allocation in any of the three categories i.e.

i) direct finance,

ii) indirect finance,

iii) Investment in bonds of NHB/HUDCO, or combination thereof.

a) All the three categories are correct b) Only i is correct

c) Only ii is correct d) Only i and ii are correct

16 Direct Housing Finance refers to the finance provided to 1. Individuals 2. Groups of individuals 3. Co-operative societies.

a) All the three categories are correct b) Only i is correct

c) Only ii is correct d) Only i and ii are correct

17 The following types of bank finance may be included under Direct Housing

Finance:

i) Bank finance extended to a person who already owns a house in town/ village

where he resides, for buying/ constructing a second house in the same or other

town/ village for the purpose of self occupation.

ii) Bank finance extended for purchase of a house by a borrower who proposes to let it out on rental basis on account of his posting outside the headquarters or

because he has been provided accommodation by his employer.

a) Only i is correct b) Only ii is correct

c) Both i and ii are correct d) Either of the above is correct

18 The following types of bank finance may be included under Direct Housing

Finance:

i) Bank finance extended to a person who proposes to buy an old house

where he is presently residing as a tenant.

ii) ii) Bank finance granted only for purchase of a plot, provided a declaration is obtained from the borrower that he intends to construct a

117

house on the said plot, with the help of bank finance or otherwise,

within such period as may be laid down by the banks themselves.

a) Only i is correct b) Only ii is correct

c) Both i and ii are correct d) Either of the above is correct

19 Banks may consider requests for additional finance within the overall ceiling for carrying out alterations/ additions/repairs to the house/flat already financed by

them. Such type of financing is called as

a) No such financing is now allowed by RBI presently

b) Supplementary Finance

c) Indirect finance d) None of the above

20 Indirect housing finance can be channeled by way of term loans to housing

finance institutions, housing boards, other public housing agencies, private builders, etc. primarily for augmenting the supply of serviced land and constructed units.

a) The above statement is true b) The above statement is partially true

c) The above statement is false d) So such housing finance is there presently in our Bank

21 Financing of land acquisition, finance to private builders, investments in bonds of NHB/HUDCO, housing boards are also part of indirect housing finance.

a) The above statement is true b) The above statement is partially true

c) The above statement is false d) So such housing finance is there presently in our Bank

22 In terms of NHB guidelines, housing finance companies’ total borrowings, whether

by way of deposits, issue of debentures/ bonds, loans and advances from banks or from financial institutions including any loans obtained from NHB, should not exceed 16 times of their net owned funds

a) The above statement is true b) It is 10 times as per recent guidelines

c) The above statement is false d) It is 20 times as per recent guidelines

23 All housing finance companies registered with NHB are eligible to apply for refinance from NHB and will be eligible subject to the refinance policy.

a) Refinance is being provided by RBI b) Refinance is being provided by Housing and Urban Development Ministry at Central Level.

c) The refinance is being provided by d) No such refinance is there in

118

NHB is correct housing category

24 While granting finance to specific housing development projects, branches are advised to stipulate as a part of the terms and conditions that:

i) The builder/developer/company would disclose in the Pamphlets/Brochures etc., the name(s) of the bank(s) to which the

property is mortgaged.

ii) The builder/developer/company would append the information relating to mortgage while publishing advertisement of a particular scheme in

newspapers/magazines etc.

iii) The builder/developer/company would indicate in their pamphlets/ brochures, that they would provide No Objection Certificate (NOC)/

permission of the mortgagee bank for sale of flats/property, if required.



d) None of the above is correct.

25 Banks should not grant finance for construction of buildings meant purely for Government/Semi-Government offices, including Municipal and Panchayat offices.

However, banks may grant loans for activities, which will be refinanced by institutions like NABARD.

a) The above statement is false b) RBI permitted only SBI to finance such activities, taking into account the experience in this line of

activity by the Bank

c) The above statement is true d) Now all the banks are permitted subject to approval from RBI

26 In cases where the applicant owns a plot/land and approaches the banks/ FIs for a credit facility to construct a house, a copy of the sanctioned plan by competent

authority in the name of a person applying for such credit facility must be obtained by the Banks/FIs before sanctioning the home loan.

a) The above statement is false b) RBI came up with relaxations in

this matter to boost the housing finance

c) The above statement is true d) SBI came up with relaxations in

this matter to boost the housing finance.

27 An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be

strictly as per the sanctioned plan and it shall be the sole responsibility of the executants to obtain completion certificate within 3 months of completion of construction, failing which the bank shall have the power and the authority to

recall the entire loan with interest, costs and other usual bank charges.


119


c) The above statement is true d) SBI came up with relaxations in this matter to boost the housing

finance.

28 An Architect appointed by the bank must also certify at various stages of

construction of building that the construction of the building is strictly as per sanctioned plan and shall also certify at a particular point of time that the completion certificate of the building issued by the competent authority has been

obtained.



c) The above statement is true d) SBI came up with relaxations in

this matter to boost the housing finance.

29 Loans to Builders towards construction of any property which is intended to be sold or given on lease ,are classified as loans under

a) Commercial Real Estate b) Non Commercial Real Estate

c) No such classification is there d) Such loan are not given as per

recent RBI Monetary Policy

30 Loans to multiple houses intended to be rented out. If the total number of units is more than two, financing for the third unit will be treated as financing under _________




31 Bank finance for acquisition of land to private developers for setting up SEZ is not permissible as per extant instructions. However Bank can finance cost of land

development and this exposure is to be classified as

a) Commercial Real Estate,

as the repayment would be the lease rentals of the developed plots/ sheds.

b) Non Commercial Real Estate

c) No such classification is there d) Such loan are not given as per recent RBI Monetary Policy

32 Exposure to MFs/VCFs/PEFs investing primarily in the real estate companies the financing will be treated as


120


33 Loans to owners of shopping malls, office premises, etc to be repaid out of rentals to be classified as



34 Loans to entrepreneurs for acquiring real estate for the purpose of their carrying business activities which will be serviced out of cash flows generated by the business



35 Financing of acquisition/renovation of self owned office/company premises – is treated as _________ as the repayment will come from the company revenues and not from real estate



36 Exposure towards acquisition of units/ to industrial units in SEZs




37 Exposure to industrial units towards setting up of units or projects and working capital requirement, etc –



38 Indirect exposure to HFCs engaged in lending to individuals for residential housing as per the norms fixed by NHB would be treated as :



39 The _________________ Department at the Corporate Centre reviews

periodically the exposure norms for different industries.

a) Risk Management b) Risk measure

121

c) Exposure Management d) Export Management

41 In terms of sections 45-I, Chapter IIIB of the_______________, a Non-Banking Financial Company (NBFC) has been defined as a company which is a non-

banking institution and a financial institution which carries on as its business or part of its business

a) Reserve Bank of India Act b) Companies Act

c) Banking Regulation Act d) LLP Act

41 Being agro-based, tea industry is seasonal in nature.

a) With the advent of new

technology in agriculture, the seasonality has lost its importance

b) The statement is correct

c) There is no Peak season for tea industry


42 The assessment of working capital for financing tea industry is based on which

method

a) Cash Budget b) Turnover method

c) Traditional Method d) PBS

43 All the units with holding upto 100 hectares/250 acres and who do not have processing factories of their own, are to be considered as small tea planters.

a) Small Tea Planters b) Bought Leaf Factories

c) Tea Traders d) Medium Tea Planters

44 The units which buy green leaves from the neighbouring small planters for

processing at their factories.



45 _________ are engaged in buying tea at auction in bulk and eventually selling/exporting it.



46 All proposals pertaining to Ship Breaking units have to be housed at Specialised

122

Industrial Finance Branch, ____________ (MCG) apart from migrating existing

accounts maintained elsewhere

a) Bhavnagar b) Gandhinagar

c) Mumbai d) Ahmedabad

47 Energy derived from renewable sources like wind, solar, small hydro power and

biomass/ cogeneration/ waste to energy is classified as ____________.

a) Renewable Energy b) Conventional Energy

c) Non Conventional Energy d) Convertible Energy

48 Based on prescribed criteria, Independent Power Producer (IPP) projects, including RE proposals, are appraised/ vetted and controlled by

a) CAG b) Project Finance Strategic Business Unit (PFSBU).

c) SMEBU d) RMD

49 A___________(SPV) rooftop power generation system consists of solar panels

installed on the roof of any residential, commercial, institutional or industrial building for generation of electricity.

a) Solar Photo Voltaic b) Sun Photo Voltaic

c) Solar photon Voltaic d) Solar Photo Volt face

50 Principal financing model(s) for grid connected rooftop solar projects are: 1. Capex Model 2. RESCO (Renewable Energy Service Company) Model:

a) Only 1st Model b) Only 2nd Model

c) Both models d) None of the above

51 BOOT (Build, Own, Operate & Transfer) is a model wherein, the aggregator constructs, owns, operates and transfers the ownership after expiry of contract

period or as per agreed terms

a) The statement is correct b) The statement is partially correct

c) The statement is not correct d) No such method is there

52 BOOM (Build, Own, Operate & Maintain)-The aggregator constructs, owns,

operates and maintains the project.

a) The statement is correct b) The statement is partially correct

c) The statement is not correct d) No such method is there

123

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS B C A B C B A C C A

Q 11 12 13 14 15 16 17 18 19 20

ANS A C C A A A C C B A

Q 21 22 23 24 25 26 27 28 29 30

ANS A A C C C C C C A A

Q 31 32 33 34 35 36 37 38 39 40

ANS A A A B B B B B A A

Q 41 42 43 44 45 46 47 48 49 50

ANS B A A B C A A B A c

Q 51 52

ANS A A

124

ADVANCES- SME

1 CGTMSE stands for

a) Credit Guarantee Trust for Medium and Small Enterprises

b) Credit Guarantee Trust for Manufacturing & service Enterprises

c) Credit Guarantee Trust for Micro and Small Enterprises

d) Credit Guarantee Fund Trust for Micro and Small Enterprises

2 The extent of Guarantee cover under CGTMSE for retail loans is …..

a) 0% b) 50%

c) 75% d) 85%

3 CGTMSE set up by

a) NABARD b) SIDBI

c) RBI d) SIDBI &Govt. of India

4 What are the activities covered under Stand up India?

a) Trading, Services and Manufacturing

b) Trade and services

c) Manufacturing and Trade d) Manufacturing and services

5 Who are not eligible under PMEGP Scheme?

a) SHG b) Existing units

c) Societies d) Trusts

6 What is the population limit for classifying as Rural under PMEGP?

a) 10000 b) 20000

c) 1000 d) 2000

7 Under Asset Backed Loan(ABL) what is LTV on immovable property

a) 40% of realisable value b) 65% of realisable value

c) 75% of realisable value d) 50% of realisable value

8 Which of the following not eligible for Open Term Loan?

a) All units under manufacturing sector banking with us

b) Manufacturing units not Banking with us

c) Under Service Sector: Healthcare Industry, Hospitality Industry and

Transport operators

d) All the above

9 What is the duration of submission of stock statements under ABL

a) Monthly b) Half Yearly

c) Yearly d) Quarterly

10 At what intervals an ABL is to be reviewed

a) Monthly b) Half Yearly

c) Yearly d) Quarterly

11 The margin for under PMEGP for general category

a) 5% of the loan amount b) 10% of the loan amount

c) 5% of the project cost d) 10% of the project cost

12 Under PMEGP Scheme who are not part of Special Category for benefit of higher

subsidy and lower margin?

a) SC/ST/OBC/Minorities b) Women/North Eastern Region/Hill and Boarder areas

125

c) Ex serviceman d) None

13 Under PMEGP, the maximum cost of the project/unit admissible under manufacturing sector is-----------

a) Rs. 10 lacs b) Rs. 25 lacs

c) Rs. 50 lacs d) Rs. 15 lacs

14 Rate of Subsidy for Ex-Serviceman in rural area under PMEGP is

a) 25% of the loan amount b) 35% of the loan amount

c) 35% of the project cost d) Can not be financed under PMEGP

15 The maximum cost of the project/unit admissible under business/service sector

under PMEGP is

a) Rs. 10 lakh. b) Rs. 15 lakh.

c) Rs. 20 lakh. d) Rs. 25 lakh.

16 Which of the following is not true in respect of PMEGP scheme?

a) Two brothers can be given two loans

b) Two loans can be given to father and son

c) Two loans can be given to

husband and wife

d) Only one loan to be given to a

person from one family

17 The objective of introduction of PMEGP was to generate employment through---

a) Establishment of micro enterprises in rural as well as urban areas

b) Establishment of micro and small in rural as well as urban areas

c) Establishment of small enterprises

in rural areas

d) Establishment of micro and small

in rural areas

18 The minimum amount of Loan that can be under SME Smart Score?

a) Rs.5 Lacs b) Rs.10 Lacs

c) >Rs.10 Lacs d) No Minimum amount, only max prescribed

19 The maximum amount of loan that can be sanctioned to a Manufacturing unit under SME Smart Score?

a) Rs.25 Lacs b) <Rs.50 Lacs

c) Rs.100 Lacs d) No max limit but as per assessment

20 The maximum amount of loan that can be sanctioned under SME Smart Score for a Trader / Service provider?

a) Rs.25 Lacs b) <Rs.50 Lacs

c) Rs.100 Lacs d) No max limit but as per assessment

21 The age criteria stipulated for the promoter/ applicant to avail a loan under SME Smart Score is___________.

a) Min 21 Yrs- Max 65 Yrs. b) Min 18 Yrs- Max 60 Yrs.

c) Min 18 Yrs- Max 65 Yrs. d) No Upper age limit but min 18 years of age

22 The maximum quantum of loan that can be extended under SME Credit Card is:

a) Rs.5 lacs b) Rs. 10. Lacs

c) Rs. 25 lacs d) Rs. 5 lacs for service units and Rs. 10 lacs for Manufacturing units

23 The maximum repayment period permissible for a term loan under SME Smart

Score is

126

a) 5 years excluding moratorium period of 6 months.

b) 5 years including moratorium period of 6 months.

c) 7 years including moratorium period of 6 months.

d) 7 years excluding moratorium period of 6 months.

24 The maximum age criteria stipulated under SME Credit Card is___________.


c) 70 years d) No max age stipulated

25 The minimum score, an applicant should get to be eligible for availing finance under SME Credit Card is:

a) 50% b) 60%

c) 40% d) No such criteria

26 For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector under PMEGP, the beneficiaries should possess at least ___________ pass educational qualification

a) X th standard b) VIth standard

c) VIIIth standard d) NO such condition

27 Under SME Credit Plus, ____% of aggregate working capital limit subject to a maximum of ________ can be sanctioned.

a) 10% and Rs. 10 lacs b) 20% and Rs. 20 lacs

c) 10% and Rs. 25 lacs d) 20% and Rs. 25 lacs

28 The maximum time period allowed for repayment of SME Credit Plus is _____.



29 The minimum score that an applicant should get in order to be eligible TO avail a loan under SME Smart Score is

a) 60% (with a minimum score of

50% under each sub head)

b) 50% (with a minimum score of


c) 70% (with a minimum score of


d) 75% (with a minimum score of


30 The maximum time period allowed for repayment under SME Credit Plus is_____

a) 1 month b) 2 months


31 What is Tarun Category under PMMY?

a) Loans upto Rs. 50000/- b) Above Rs. 50000/- to Rs. 5 lacs

c) Above Rs. 5 lacs to Rs. 10 lacs d) Above Rs. 1 lac to Rs. 10 lacs

32 SME Credit Plus can be sanctioned for which of the following purposes

a) Tax payments b) Repairs to machinery.

c) Any other contingency d) all of the above.

33 What is the target group for Stand up India?

a) SC/ST b) Physically Handicapped

c) Women d) Both a and c

34 What is full form of NCGTC

a) National Credit Guarantee Trust

Company

b) National Cooperative Guarantee

Trust Company

127

c) National Corporation Guarantee Trust Company

d) National Common Guarantee Trust Company

35 What is the quantum of bank finance under PMEGP

a) 90%in general category b) 95% in special category

c) Both a and b d) None of the above

36 Under bank’s E-VFS scheme the letter “V” stands for

a) Vector b) Variable

c) Verifiable d) Vendor

37 SME 3 is

a) Letter of arrangement b) Agreement of loan cum hypothecation

c) Guarantee agreement d) Supplemental agreement of loan cum hypothecation

38 SME-1 is

a) Letter of Arrangement b) Agreement of Loan Cum Hypothecation

c) Guarantee Agreement d) Link Letter

39 SME-2 is

a) Letter of Arrangement b) Agreement of Loan Cum Hypothecation

c) Guarantee Agreement d) Link Letter

40 SME-12 is

a) Letter of Arrangement b) Link Letter

c) Revival Letter d) Agreement of Loan Cum Hypothecation

41 What is the minimum loan amount to be sanctioned under Asset Backed Loan

Scheme?

a) Above Rs. 5 lacs b) Above Rs. 10 lacs

c) Above Rs. 25 lacs d) Above Rs. 20 lacs

42 What is the Maximum loan amount to be sanctioned under Asset Backed Loan Scheme?

a) Rs. 1 crore b) Rs. 10 crores

c) Rs. 15 crores d) Rs. 20 crores

43 What is the LTV ratio to be maintained under ABL scheme?

a) For loans upto Rs 10 Crores: 60% of the realizable value

b) For Loans above Rs 10 Crores upto Rs. 20 Crores: 50% of the realizable value

c) 50% of the realizable value d) Both a and b

44 Which of the following unit can be financed under ABL scheme?

a) CRA of SB-10 b) CRA of SB-9

c) CRA of SB-11 d) Both a and b

45 What type of facility can be sanctioned under ABL?

a) Cash Credit b) Term Loan

c) Drop line OD d) Both a & c

46 What is the maximum period of moratorium under ABL scheme?

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c) 18 months d) No moratorium as it’s a dropline OD facility

47 Under asset backed loan, property proposed to be mortgaged needs to be within

a radius of ____KM of the branch.

a) 10 b) 15

c) 20 d) 25

48 What is the nodal agency for implementing PMEGP Scheme at National level?

a) RBI b) NABARD

c) KVIC d) SIDBI

49 R & DB branches handle SME proposals up to Rs. __________ Crores

a) Rs. 5 crores b) Rs. 25 rores

c) Rs. 50 crores d) Rs. 100 crores

50 Loans to Medium Enterprises engaged in manufacturing as per MSMED act up to Rs. __________covered under Priority Sector Advances.

a) Rs. 10 crores b) Rs. 25 crores

c) Loans to Medium Enterprises not covered under Priority Sector Advances

d) No limit

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ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS d b D a b b d b d c

Q 11 12 13 14 15 16 17 18 19 20

ANS d d B c a c a c b b

Q 21 22 23 24 25 26 27 28 29 30

ANS c b C d b c d a a b

Q 31 32 33 34 35 36 37 38 39 40

ANS c d D a c d c a b b

Q 41 42 43 44 45 46 47 48 49 50

ANS b d C b d c d c c d

130

ADVANCES-SME

1 Under SME Credit Card Scheme, in case of composite Loan, only the Term loan component is repayable in installments up to a maximum period of …..



2 Under SME Credit Card Scheme, Working capital Assessment for Professional &

Self Employed is made as

a) 20% of their annual turnover b) 25% of their annual turnover

c) 50% of their Gross Income as per

IT Returns

d) 100% of their Gross Income as

per IT Returns

3 In respect of SME Smart Score , which of the following statement is correct?

a) The Chief promoter should be 18 to 65 years of age

b) Quantum of Finance for Manufacturing unit is Rs 5.00 Lacs to Rs 50.00 Lacs .

c) Quantum of Finance for Trading unit is Rs 5 Lacs to Rs 25 Lacs .

d) Margin required is 20% for WC and 33% for TL Component. .

4 What is the maximum loan amount that can be covered under CGTMSE sanctioned to Retail Traders?

a) Not to be covered b) Rs. 50 lacs


5 Rate of Subsidy available for General category customers for setting up of micro

enterprises in urban area under PMEGP is

a) 5% of project cost b) 5% of loan amount

c) 15% of loan amount d) 15% of project cost

6 What is the Maximum Loan amount that can be sanctioned to Corporate in Metro/Urban/other centres under Doctor Plus ?

a) 2 cr b) 5 cr

c) 10 cr d) 20 cr

7 In respect to the Repayment Program under Doctor Plus Scheme which of the

following statement is correct ?

a) Maximum Period up to 5 years (

including moratoriums period) for buying Equipments and expansion/renovation/modernization

b) Maximum Period up to 7years

(including a max moratorium period of 12 months) with Minimum DSCR of 1.50:1

c) Maximum Period up to 8 years ( including moratoriums period) for setting up cleaning, nursing home,

pathology labs, drug store.

d) Minimum DSCR has to be 1.75:1 and Maximum Moratorium is 12 months

8 Open Term Loan will be extended to the Borrower with the following CRA rating

and better ?

a) SB-4 b) SB-5

c) SB-6 d) SB-7

9 Minimum ECR required for sanctioning Open Term Loan to the Borrower?

a) C b) BB

c) BBB d) A

131

10 Rate of Subsidy available for Special category customers for setting up of micro enterprises in Rural area under PMEGP is

a) 25% of the Project cost b) 35% of the Project cost

c) 45% of the Project cost d) 50% of the Project cost

11 What is the maximum loan amount that can be sanctioned under SME Open Term loan for the purpose of creation of Tangible assets ?

a) 50 Lakh b) 100 Lakh

c) 150 Lakh d) 800 Lakh

12 What is the margin required under SME Open Term Loan ?

a) 5% b) 10%

c) 25% d) 15%

13 What is the validity of sanction of SME Open Term Loan ?



14 What is the repayment period generally allowed under SME Open Term Loan ?

a) 5 Year b) 3 Year

c) 7 Year d) 8 Year

15 Transport Operator with minimum of what number of vehicles are eligible for

SME Open Term Loan Facility ?

a) 10 b) 15

c) 20 d) 25

16 If ECR is not available , CRA rating required of the Borrower for sanctioning of Loan under Corporate Loan ?

a) SB-3 b) SB-4

c) SB-5 d) SB-6

17 Borrower with CRA of SB-6 to SB-10, are eligible for Corporate Loan, if having ECR of Investment grade?

a) BB- and better b) BB and better

c) BBB- and better d) BBB and better

18 What is the Minimum Quantum of Loan under Corporate Loan Scheme ?

a) Rs 25 Lacs b) Rs 50 Lacs

c) Rs 100 Lacs d) Rs 5 crores

19 What is the Maximum Quantum of Loan for Non Corporate Borrowers under Corporate Loan Scheme ?

a) Rs 100 Lacs b) Rs 500 Lacs

c) Rs 1000 Lacs d) No Cap

20 What is the Maximum Quantum of Loan for Corporate Borrowers with CRA rating

of SB-1 to SB-5 with ECR of AA- , under Corporate Loan Scheme ?

a) Rs 1000 Lacs b) Rs 5000.00 Lacs

c) As per Sunbstantial Exposures

norms under Loan Policy

d) No Cap

21 Corporate Loan for the purpose of Ongoing Capex such as replacement of parts

of machinery, upgradation , renovation etc has been capped at

a) 20% of FB Limit b) 25% of FB Limit

c) 20% of Gross Block d) 20% of WDV of Fixed Assets

22 The number of Corporate Loans outstanding in the name of a borrower at any

132

point of time, should not be more than

a) 2 b) 3

c) 4 d) No Cap

23 In respect to the SME Credit Plus which of the following statement is incorrect ?

a) Quantum of Finance is 15% of aggregate Working capital Limit

subject to maximum of Rs 25.00 Lacs.

b) Type of facilities is Clean Cash credit and availability of D P is not

required for drawing down the facility

c) There should be a gap of 15 days

between the last date of repayment of outstanding and the next withdrawal

d) In case of SME units where SME

Credit Plus facility is sanctioned , SLC is not to be released

24 Minimum Loan amount under ABL –CRE-RP

a) Rs. 10.00 lacs b) Rs. 25.00 lacs

c) Rs. 50.00 lacs d) No Minimum Cap

25 What is the Repayment structure under ABL CRE-RP?

a) For a period of 12 months to 84 months

b) For a period of 12 months to 96 months

c) For a period of 12 months to 120

months

d) For a period of 12 months to 180

months

26 Under ABL & ABL CRE , Cash Margin for NFB Facility required is ?

a) 10% b) 15%

c) 25% d) Margin is not required as the Drawing Power is allowed against

Colateral Security .

27 Under ABL & ABL CRE , T I R should be obtained from two different panel Advocate in case of the following ?

a) Loans of Rs 25.00 Lacs and above b) Loans above Rs 25.00 Lacs

c) Loans of Rs 50.00 Lacs and above d) Loans of Rs 100.00 Lacs and

above

28 Maximum loan amount that can be financed under Stand Up India is



29 Min loan amount that can be financed under Stand Up India is


c) Rs. 2 lacs d) None of the above

30 The margin stipulated for loans upto Rs.10 Lacs under Doctor Plus scheme?

a) 10% b) 15%

c) 25% d) 30%

31 Which of the following can be considered for finance under Doctor Plus scheme?

a) Setting up of a clinic and purchase

of an Ambulance

b) Expansion/renovation etc

c) Setting up a Nursing home and

purchase of Computers etc.

d) All of the above

32 Maximum Moratorium period that can be allowed for loans sanctioned under Doctor Plus scheme is: ____________.


133

c) 18 months d) Till the Doctor's practice stabilises subject to a maximum of 24

months.

33 The minimum DSCR stipulated for loans under Doctor Plus is ________.

a) 1:1.5 b) 1:1.25

c) 1:1.75 d) 1:1.33

34 The maximum age criteria stipulated under SME Credit Card is___________.


c) 75 years d) No max age stipulated

35 Which of the following is true with respect to SME Credit Card?

a) The limit can be reviewed if the

credit summations are 50% of the Projected Turnover.

b) A repayment schedule has to be

fixed if the credit summations are less than 50% of Projected Annual Turnover

c) Both CC and TL can be sanctioned under the scheme

d) All of the above

36 Who amongst the following is eligible to avail finance under Doctor Plus scheme?

a) Individuals and Partnerships b) Corporates

c) Trusts with powers to borrow d) All of the above

37 Which of the following is Correct with respect to Doctor Plus Scheme?

a) The loan can only be sanctioned as

TL

b) The loan can only be sanctioned

as Overdraft.

c) The loan can only be sanctioned as Demand loan.

d) The loan can only be sanctioned as TL/Cash Credit/ OD/ DL.

38 SME Credit Plus can be sanctioned for which of the following purposes?

a) Tax payments b) Repairs to machinery

c) Any other contingency d) All the Above

39 The maximum quantum of finance that can be extended under Stand by Line of

Credit (WC) is: ___________.

a) Rs.20 Crores b) Rs.15 Crores

c) Rs.10 Crores d) Rs.5 Crores

40 The maximum time allowed for repayment of Stand by Line of Credit(WC) is____.



41 Max. Term Loan under SME Credit Card is Rs. ….. lacs

a) Rs. 5 lacs b) Rs. 7.5 lacs


42 Facility wise Rating is applicable for ……..

a) Simplified Model Up to Rs.5.00 Crores

b) Simplified Model above Rs.5.00 Crores

c) Regular Model Up to Rs.5.00 Crores d) Regular Model above Rs.5.00 Crores

43 What is the Periodicity of Inspection for ABL ?


c) Half Yearly d) Yearly

44 Under SBI eDFS, the borrower/dealer will have the following advantages :

134

a) Low Interest Rates b) 100% financing of Invoices

c) Flexible Collateral terms d) All the above

45 FFR‐I (Financial Followup Report‐I) needs to be submitted by the borrower

……….......

a) Within 67 days from the close of a quarter

b) Within 67 days from the close of half‐year

c) Within 52 days from the close of a quarter

d) Within 52 days from the close of half‐year

46 Frequency of submission of stock statement in SME Smart score loan


c) Half yearly d) Annually

47 -----------has developed a Contactless lending platform (CLP) for smooth sanctioning of loans above Rs.10 lakhs upto Rs. 100 lacs.

a) RBI b) SIDBI

c) NABARD d) SBI

48 Maximum loan amount under e-smart score is



49 Frequency of submission of stock statement in SME Smart score loan


c) Half yearly d) Annually

50 What is CLP, developed by SIDBI?

a) Contactless lending platform b) Corporate lending platform

c) Contactless lending point d) Corporate lending Point

135

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS b d a d d b b c c b

Q 11 12 13 14 15 16 17 18 19 20

ANS d c d a d c c b c c

Q 21 22 23 24 25 26 27 28 29 30

ANS c b a c a c b b d b

Q 31 32 33 34 35 36 37 38 39 40

ANS d b a d d d a d a d

Q 41 42 43 44 45 46 47 48 49 50

ANS c d c d c a b c b a

136

ADVANCES-SME

1 A document should never be ante-dated. If a date on the document appears to be prior to the date of stamping or the date of purchase of stamps, such document would be treated as invalid on the grounds that --------------

a) It has not been duly stamped

b) Not adequately stamped

c) Can be rectified at Sub Reg Office d) None of the above

2 Before execution of documents the signatures of the borrowers need to be tallied with that on the -------------

a) To be attested from Notary

b) Application form

c) From other kyc documents

d) Not necessary to tally

3 Whether a document can be executed by different persons on different dates?

a) Yes b) No

c) With approval of Sanctioning

Authority for deviation

d) Deviation cannot be permitted

4

If the executants of the documents is an illiterate person, his left hand thumb impression is obtained. In case of women

a) Right hand thumb impression,

by convention

b) Any thumb impression

c) Only left hand thumb for all

d) Similar to male

5 Where the Loan Documents can be executed?

a) RACPC/ Branches

b) Special Document Execution Desk

c) Applicant’s residence / business

place/ mutually agreed place by MOBILE TEAM

d) Any of the above

6 Disbursements to be made with in ………months from the date of sanction in case of SBI Construction Equipment loans.


c) 3 months d) 1 month

7 Precautions have to be taken to confirm the genuineity of “lost title deeds”?

a) Lodging FIR

b) Advertisement in prominent

national newspaper

c) Advertisement in prominent Local

newspaper

d) All the above

8 In the post sanction stage of a SME car loan, vehicle registration details can be

verified from the website .........

a) Vehicle.org.in b) Vahan.nic.in

137

c) Rta website d) Vehiclereg.gov.in

9 Field Officer has to take precaution and follow the procedure which is mentioned as per Section 12 of Stamp Act . The particular section deals with..........

a) Cancellation of stamps b) Execution of documents

c) Proper stamp duty d) All the above

10 Where collateral security by way of deposit of title deeds is required to be

obtained at Branches situated at non-notified centres, it would be necessary to arrange for its creation at the Branch located at the nearest notified centre. In this connection, How the Title deeds and the legal opinion have to be sent to the

Branch at the non-notified centres?

a) By Regd insured post to the branch

b) Through borrower in sealed cover

c) By branch staff d) Any of the above

11 All title deeds and mortgage documents held against advances must be kept in

the fire proof cabinet under

a) Joint custody b) Single custody

c) Along with cash and other

valuables

d) Along with Branch Documents by

BM only

12 CERSAI has been established by the Central Government under

___________Section and under Section 25 of the Companies Act,

a) Sec 20(1) of SARFAESI Act 2002 b) Sec 20(1) CERSAI Act 2002

c) Sec 20(1) Central Registry Act

2002

d) Sec 20(1) SARFAESI Act 2000

13 CERSAI has been established by the Central Government under Section 20(1) of

the SARFAESI Act 2002 and under Section 25 of the Companies Actof the Companies Act, for the purpose of registration of all security interest over property, transactions of securitisation and asset reconstruction, registration in

cersai site to be done with in ____ days from date of registration



14 The filing with CERSAI is to be done individually, for each mortgage created in the Bank. The responsibility for doing so rests with the ------------

a) Credit Processing Cells b) RBO

c) Branch d) a & c

15 Bank Guarantee is defined under which act

a) Sec 126 of Indian Contract Act 1872

b) Sec 126 of BR Act

c) Sec 126 of RBI Act d) Sec 126 of NI Act

16 Advantages with Bank Guarantee business to Customers

a) No immediate outlay of funds b) Cheaper in cost than fund based

c) Off Balance sheet item in customers books

d) All the above

17 Advantages with Bank Guarantee business to Banks

a) Reduces pressure on spread on FB

advances

b) Improves earnings of the Bank

through comission and Processing charges

c) Improves resources of Bank d) All the above

138

through Margin money

18 Which Bank Guarantee will be issued in lieu of Earnest Money that a bidder has to deposit

a) Performance Bank Guarantee b) Bid bond Guarantee

c) Financial Guarantee d) Deferred payment Guarantee

19 Which Bank Guarantee is issued to make good of monetory loss in the event of

failure by applicant

a) Financial Bank Guarantee b) Deferred payment Guarantee

c) Performance Bank Guarantee d) Bid bond Guarantee

20 In which Bank Guarantee, guarantee agreement should not call upon the bank to complete a task, wchich the client has not been able to do

a) Financial Bank Guarantee b) Bid Bond guarantee

c) Deferred payment Guarantee d) Performance Bank Guarantee

21 BG’s should not normally be issued to facilitate

a) Business transactions b) Performance of a contract

c) Purchase of raw materials d) Advance payment

22 Where 100 % Cash Margin is not made available guarantee can be issued for a period of



23 BG will be prepared in ______ number of copies

a) Duplicate b) Triplicate

c) Quadruplicate d) All the above

24 Which is correct for Claim Period and Validity Period

a) Claim and validity to be same for

all normal BG’s

b) Claim period and validity are of

same meaning

c) Separate claim and validity period to be provided only for PSU &

autonomous bodies only if insist

d) a & c

25 Which of the following is correct regarding claim period and Guarantee period

a) No claim on bank after expiry of claim and guarantee period

b) Claim can be made even after expiry of claim and guarantee period

c) Till such time the original guarantee is not returned claim can be made

d) All are correct

26 Guarantees issued against Exports/ Imports are governed by

a) FEMA, FEDAI b) RBI

c) Exchange control Regulations d) All the above

27 Export Trade is regulated by _______

a) DGFT b) RBI, FEDAI

c) Govt of India d) All the above

28 All items are classified into _____ Major categories

a) 2 b) 3

c) 4 d) 5

29 Which of the following is not a correct category of Import / Export

139

a) Merchandise b) Services

c) Computers d) Project services

30 Status holders are classified into ______ categories

a) 2 b) 3

c) 4 d) 5

31 Turnover of One Star Export house in US$ in millions

a) 3 b) 25

c) 100 d) 500

32 Turnover of Two Star Export house in US$ in millions

a) 3 b) 25

c) 100 d) 500

33 Turnover of Three Star Export house in US$ in millions

a) 3 b) 25

c) 100 d) 500

34 Turnover of Four Star Export house in US$ in millions

a) 3 b) 25

c) 100 d) 500

35 Turnover of Five Star Export house in US$ in millions

a) 25 b) 100

c) 500 d) 2000

36 Who lays down the ground rules, based on RBI's directions, for the day-to-day conduct of foreign exchange activity by ADs

a) FEDAI b) ECGC

c) FTP d) RBI

37 Director General of Foreign Trade (DGFT) implements the Foreign Trade Policy

framed by the _______________ of Government of India

a) Ministry of Commerce b) Customs Department

c) Reserve Bank of India d) FEDAI

38 Prohibited Goods are the items which______________

a) Can be exported with Customs permission

b) Can be exported after having valid license for exports

c) cannot be exported at all d) Can be exported with DGFT

permission

39 Restricted Goods are restricted items that

a) Cannot be exported with permission

b) Can be exported with license

c) Can be exported with AD approval d) Can be exported with RBI

permission

40 Total number of Diamond Dollar Accounts that can be opened as per FEMA

a) 2 b) 3

c) 5 d) 1

41 Counter trade in forex transaction means

a) Selling on overseas counter b) Selling in our counters

c) Adjustment of value of goods

imported to value of goods exported

d) Selling the left over stock at

discount at overseas counter sales

140

42 Any person resident outside India (not citizen of Pakistan or Bangladesh), visiting India may take outside India not exceeding Rs__________

a) Rs 50,000/- b) Above Rs 50,000/-with PAN

c) Rs 25,000/- d) Equivalent of USD 2,50,000/-

43 Payment for supply of goods from Domestic Tariff area to SEZ / EOU / EPZ / STP / EHTP can be received in ________

a) Foreign currency b) Only Indian Rupees

c) In US $ only d) None of the above

44 Softex form should be submitted within ___ days from date of _________________.

a) 21.......date of transmission

b) 30........date of transmission

c) 21........date of Invoice d) 30.........date of Invoice

45 Export documents should be submitted to the bank within 21 days from

a) Date of Invoice b) Date of Export

c) Date of Receipt of EDF d) All of the above

46 If Export documents are not submitted to the bank within 21 days from date of export whose permission is required

a) RBI Permission b) No permission is required

c) Customs permission d) DGFT permission

47 EPC and PCFC are sources for

a) Export financing b) Import Financing

c) Bill Financing d) LC

48 Remittances against imports should be completed not later than _____ months from the date of shipment

a) 6 b) 12

c) 18 d) 24

49 Remittances against import of books may be allowed

a) Within 6 months b) With in 12 months

c) With in 18 months d) without restriction as to the time limit

50 UCP 600 became effective on

a) 01.07.2007 b) 01.01.2008

c) 01.01.2000 d) 01.07.2015

51 Inco Terms are Issued by

a) Chamber of commerce b) World Trade Organisation

c) World Bank d) International Monetary fund

52

The documentary evidence for import transaction is

a) ED Form b) Bill of Entry

c) GR Form d) SOFTEX form

53 INR is

a) Fully convertible on current a/c b) Fully convertible on Capital account

c) Partially convertible on both d) Not convertible at all

141

current and capital accounts

54 INCOTERMS denote, who will bear

a) Freight b) Insurance

c) Risk during transit d) All the above

55 The period up to which Interest is to be collected on a usance export bill

a) Notional Transit Period b) Usance Plus NTP

c) Usance period d) 30 days

56 The software application used to report FX Transactions to Treasury

a) Bancs – 24 b) EXIM Bills

c) Mercury – FX d) SFMS

57 Contraventions under FEMA are

a) Civil in nature b) criminal in nature

c) Has both characteristics of civil

and criminal

d) Both Civil and criminal

58 ECGC stands for

a) Export Cooperation Goverernment corporation

b) Export Credit Guarantee Corporation of India

c) Export Cash Guarantee Company d) Exchange credit Guarantee

corporation

59 During the day forex transactions can be reported to Integrated Treasury Department latest upto

a) No restrictions on timing if it is a cross currency transaction

b) 4.00 P.M

c) 4.30 P.M d) 5.00 PM

60 To receive Foreign Contribution , Charitable educational institutions are required to register themselves with

a) RBI b) Ministry of Finance

c) Ministry of Home Affairs d) Local Collectorate

61 Inward remittances in favour of Charitable Institutions are governed by

a) FEMA b) FCRA

c) IT Act d) Banking Regulation Act

62 FCRA stands for

a) Foreign Credit Regulation Act b) Foreign Contribution Regulation Act

c) Foreign Commission Receiving Act d) Foreign Credit Receiving Act

63 If interbank rate on 01.01.2017 were 61.46/61.47 , for inward remittance what

rate we apply after keeping 0.10% as margin

a) 61.53 b) 61.40

c) 61.52 d) 61.46

64

Indo-Nepal Remittance for individuals can be permitted under NEFT upto

a) INR RS 1,00,000/- b) INR Rs 50,000/-

c) INR Rs 2,00,000/- d) INR Rs 2,50,000/-

65 ECB stands for

a) Exchange Credit Bureau b) External Commercial Borrowings

142

c) External credit Bureau d) External Credit Borrowings

66 Advance remittance for public sector company / undertaking of Government of India for Import of Services permitted without insisting BG for amount not

exceeding

a) USD 50,00,000/- b) No Limit

c) USD 1,00,000/- d) USD 50,000/-

67 Exports proceeds to be realised within a period of

a) 6 months from date of shipment b) 9 months from date of shipment

c) 12 months from date of shipment d) 15 months from date of shipment

68 EEFC stands for

a) Export Earner Foreign currency b) Exchange Earners Foreign Currency

c) Exchange Earning Foreing Country d) Export Entry for Foreing

commission

69 EEFC account can be maintained in the following manner

a) Savings Ac b) FCNR

c) Current Ac d) NRE Ac

70 Shipment documents are to be submitted within what period from the date of

shipment to AD cat banks

a) To be submitted in 30 days from

shipment

b) With in 21 days after that RBI

permission is required

c) Within 21 days from date of shipment

d) As per convenience of the exporter

71 For travel to Europe can carry currency upto

a) USD 2,50,000/- b) Not exceeding USD 3000/- per visit

or its equivalent

c) Not exceeding USD 5000/- per visit or its equivalent

d) Not exceeding USD 10,000/- per visit or its equivalent

72 EEFC account the following credit is not allowed

a) Payment received for purpose of counter trade

b) Advance remittance received by an exporter

c) professional earnings , consultancy

fees, foreign exchange earnings by inward remittance

d) Claims settled in rupees by

ECGC/insurance companies

73 Most popular risk management tool available to customers who have Foreign Exchange Exposure is

a) Constant vigil b) Forward Rate Agreement

c) Forward Contract d) Currency Futures

74

SWIFT implemented in India in the year

a) 1990 b) 1991

c) 1992 d) 1994

75

DGFT full form

a) Directorate General of Foreign

Trade

b) Director General of Foreign Trade

143

c) Directorate General of Foreign Tax

d) Director General of Foreign Taxes

76 Import Trades regulated by DGFT

a) False

b) True, but only specific Trades

c) True, all trades

d) DGFT takes care of Tax issues only

77 Import transactions can be cross verified by using

a) ICEGATE b) ICEGRID

c) ICECAT d) ICECUBE

78 Delivery of FC will be happened in case of spot transactions

a) On the Same Day

b) On the next day before 12pm

c) On the next day

d) On the second day

79 OFAC full form is

a) Office of Foreign Assets Centre

b) Office of Foreign Assets Country

c) Organsation of Foreign Assets Centre

d) Office of Foreign Assets Control

80 Which one of the following is not a type of LC

a) Confirmed LC b) Non confirmed LC

c) Revolving LC d) Transferable LC

81 Loc is

a) Letter of Credit b) Letter of Comfort

c) Letter of Control d) Letter of Cancellation

82 In LC, risk of non payment shifted to

a) Importer b) Bank

c) Company d) All the above

83 Letter of Credit transactions are governed by

a) UCPDC b) DGFT

c) RBI d) CUSTOMS

84

What is the SWIFT message type for customer transfer transactions

a) MT-100 b) MT-200

c) MT-199 d) MT-700

144

85 Exporter has presented sight documents under LC for negotiation, Inter bank rate is 67.05/67.06 what rate we apply for the transaction with our margin of .0.05

paise

a) 67.10 b) 67.11

c) 67.00 d) 67.01

86 External commercial Borrowings frame work is available in how many tracks

a) 3 tracks b) 2 tracks

c) 4 tracks d) Only one track

87 ECB loans are raised by

a) NRI’s b) Only companies

c) Banks d) Eligible Residents

88 ECB can be raised in which foreign currency

a) Only in USD b) Only in INR

c) freely convertible foreign currency d) Freely convertible foreign currency and Indian Rupees

89 The investment in productive assets and participation in management as stake

holder in business enterprises is

a) FDI b) FII

c) Balance of Payment d) SDR

90 The portfolio investment by foreign institutional investors is called

a) FDI b) FII

c) Balance of Payment d) NRI Investment

91

Which of the following statements are true i) India adopted LERMS in 1992 ii) In 1993, dual exchange rate system was replaced bya unified floating

exchange rate

a) Only i) b) Only ii)

c) Both d) None

92 Which of the following is an institution of world Bank apart from MIGA(Multilateral Investment Gurantee Agency), and ISCID(International centre

for settlement of Investment Disputes)

a) IBRD (International Bank for

Reconstruction and Development)

b) IDA (International Development

Association)

c) IFC (International Finance Corporation)

d) All the above

93 Which of the following is an objective of world Bank

a) To provide guarantee on private

loans

b) To develop production facilities in

underdeveloped countries

c) To rehabilitate war ruined economies

d) To provide long term capital to member counries for economic

reconstruction and development

94 What is the full form of FOB

a) Freight off board b) Freight on board

c) Free on board d) Free off board

95

What is bill of lading

145

a) Documents containing date of shipping

b) Documents mentioning all items mentioned have been shipped

c) Documents mentioning objects of shipment


96 What is the full form of FCA

a) Free carrier b) Free cost accommodation

c) Free care d) None of the above

97 What is export license

a) Grants permission to conduct

exporting transaction

b) Grants permission to buy goods

from abroad

c) Grants permission to import d) None of the above

98 What is WTO

a) An intergovernmental organization that regulates world trade

b) An international organization to foster global monetary cooperation

c) An international financial institution providing loans to

developing country

d) All the above

99 Suppliers Credit and Buyers Credit are a part of

a) Pre Shipment Credit facilities

b) Post Shipment Credit facilities

c) Finance extended by Indian Banks

d) Finance extended by Foreign Banks

100 Financial information of the SWIFT messages will be available in SWIFT server

for a period of

a) 30 days b) 1 year

c) Archieved after 1 year d) No storage available in swift

101 Margin requirement under Open Term Loan

a) 10% b) 15%

c) 20% d) 25%

102 Which of the following is not a variant in MUDRA scheme

a) Sishu b) Kishore

c) Varun d) Tarun

103 What is the quantum of limit under Doctor Plus Scheme

a) Rs 10 lac to Rs 5 Cr b) Rs 2 Lac to Rs 2 Cr

c) Rs 10 lac to Rs 10 Cr d) Rs 2 Lac to Rs 10 Cr

104 Under Doctor Plus which doctors are considered

a) Allopathic b) Homeopathic

c) Ayurvedic d) Any of the above

105 Under SBI Medical finance scheme following are eligible

a) Individuals, Partners, Corporates b) Applicants should have min 3 years

of operations

c) Should have tieup with / employed doctors

d) All of the above

106 What is the quantum of limit under Medical Equipment Finance

146

a) RS 2 lac to Rs 5 Cr b) Rs 10 Lac to Rs 20 Cr

c) RS 5 Lac to RS 10 Cr d) Rs 5 Lac to RS 20 Cr

107 SCFU full form in connection with edfs

a) Supply Creditors financing unit b) Sundry Creditors Financing unit

c) Supply chain finance unit d) Supply Chain funding unit

108 Under edfs scheme, term and conditions for tie up, edfs agreement, format of

letter of comfort are shared with

a) Industry Major b) Borrower

c) Dealer of the stock d) All the agents of the stock

109 E-VFS involves financing against

a) Stocks b) Receivables of vendors of reputed

Industry Majors

c) Borrower paid stocks d) Borrower stock and receivables

110

Operation unit of SCFU is located at

a) Nariman Point Branch b) Shivsagar Branch, Mumbai

c) Commercial Branch Mumbai d) Corporate centre Mumbai

111 DSCR full form

a) Debt Service coverage Ratio b) Deposit service coverage ratio

c) Discount service count Ratio d) Debit service coverage Rate

112 Flexi loan for Trade & Services minimum and maximum loan limits are

a) Rs 5 lac, Rs 100 Lacs b) Rs 10 Lacs, Rs 50 Lac

c) Rs 15 lac, Rs 200 Lacs d) Rs 1 Lac to 50 Lac

113 For financing against Lease Rental Discounting following properties leased to

________ are not accepted

a) Schools, Colleges b) Hospitals

c) Old age homes d) All the above

114 Under Lease Rental Discounting NBG (R&DB) can sanction limits from and upto

a) 10 lac to 50 Cr b) 5 lac to 5 cr

c) 2 lac to 50 cr d) 10 lac to 10 cr

115 Tenor of loan for Lease Rental Discounting upto 50 cr

a) 10 years or residual period whichever is less

b) 7 years

c) 5 years or residual period which ever is less

d) 3 years to 7 years or residual period of lease which ever is less

116 DSCR for Lease Rental Discounting minimum of ____ upto Rs 50 Cr

a) 1.75 b) 1.50

c) 1.25 d) 1.20

117 SBI construction equipment loan minimum amount of loan is

a) Rs 10 Lac b) Rs 25 Lac

c) Rs 5 Lac d) Rs 2 Lac

118 SBI construction equipment maximum loan repayment period is



119 SBI construction equipment loan can be sanctioned as

a) Term Loan b) Overdraft

c) Drop line OD d) A & C

147

120 Minimum loan amount that can be sanctioned under SBI Construction equipment Loan is


c) Rs. 10 lacs d) None of the above

121 DSCR for SBI construction equipment loan is

a) 1.25 b) 1.50

c) 1.75 d) 2.00

122 What is the maturity period of any term loan including moratorium period

a) Above 3 years b) 5 years


123 Please arrange the following in the right order :

i) Assessment ii)Appraisal iii) Sanction iv) Recommendation

a) ii) , i), iv) & iii)

b) i) , iv), ii) & iii)

c) iv) , ii), i) & iii)

d) i) , ii), iii) & iv)

124 What are the two Verticals created at Corporate Centre to deal with e-Dealer Finance Scheme

a) SMEBU & TBU

b) SCFU & PBBU

c) REHBU & SCFU

d) SCFU & TBU

125 Expand CRILC

a) Central Depository of Information on large credits

b) Common Depository of Information on large credits

c) Central Repository of Information on large credits

d) Central Repository of Information on letter of credits

148

ANSWERS - SME

q 1 2 3 4 5 6 7 8 9 10

ans a b a a d b d b a a

q 11 12 13 14 15 16 17 18 19 20

ans b a d d a d d b c d

q 21 22 23 24 25 26 27 28 29 30

ans c b c d a d d c c d

q 31 32 33 34 35 36 37 38 39 40

ans a b c d d a a c b c

q 41 42 43 44 45 46 47 48 49 50

ans c c a d b b a a d a

q 51 52 53 54 55 56 57 58 59 60

ans a b c d c c a b b c

q 61 62 63 64 65 66 67 68 69 70

ans b b b b b c b b c c

q 71 72 73 74 75 76 77 78 79 80

ans b d c c a c a d d b

q 81 82 83 84 85 86 87 88 89 90

ans b b a a c a d d a b

q 91 92 93 94 95 96 97 98 99 100

ans b d d c b a a a d d

q 101 102 103 104 105 106 107 108 109 110

ans d c a a d b c a b b

q 111 112 113 114 115 116 117 118 119 120

ans a a d a a d a a d d

q 121 122 123 124 125

ans a c a d c

149

HOME LOANS

1 Home Loan cannot be sanctioned for the following purposes

a) Purchase a new house b) Reimbursement of investment made from own resources

during the preceding eighteen months for purchase of house

c) Purchase of a old house d) Repairs to an existing house

2 Maximum repayment period for a SBI Privilege home loan fixed at

a) Borrower reaching 70 years b) Borrower reaching 65 years

c) Borrower reaching 75 years

d) No such limit, when the borrower having

steady source of income

3 How many latest ITRs to be obtained for all salaried applicants for

home loan

a) Last two years b) Last three years

c) Last one year d) Not required and last 6 months salary slip is enough

4 In case of Self-employed how may latest ITRs to be obtained for home loan

a) Last two years b) Last three years

c) Last one year d) Last Four years

5 What is the procedure for arriving net annual income for

Businessmen/Professionals/Self-Employed

a) Highest net annual income

among latest 3 ITRs

b) Average net annual

income of latest 3 ITRs

c) Net annual income of latest

ITR

d) Lowest net annual

income of latest 3 ITRs

6 What is the EMI/NMI Ratio for the home loan applicants having more than Rs.10.00lakhs net annual income

a) 60% b) 65%

c) 70% d) 75%

7 What is the EMI/NMI Ratio for the home loan applicants having up

to Rs.1.20lakhs net annual income

a) 20% b) 30%

c) 40% d) 50%

8 LTV Ratio for a housing loan of Rs.75.00 lakhs

a) 90% b) 85%

c) 80% d) 75%

150

9 Validity of Sanction in case Home loans fixed at.



10 Maximum permissible moratorium in our Home loan scheme



11 What is the pre-payment penalty under Hamara Ghar if loan closed within the initial fixed period of 2 years

a) @1% b) @2%

c) @0.5% d) No prepayment penalty

12 Maximum loan for repairs/renovations normally doesn’t exceed

a) Rs.5.00 lakhs b) Rs.10.00 Lakhs

c) Rs.20.00 Lakhs d) No such limit and as per the normal eligibility under Home

Loan scheme

13 In which place a borrower can avail home loan?

a) At the Place of construction b) At the place of

employment

c) At the place of his

residence

d) Any of the above

14 Minimum Age of for a NRI Home loan borrower



15 Minimum Loan amount in case of NRI Home Loan

a) Rs.3.00 Lakhs b) Rs.5.00 Lakhs

c) Rs.10.00 Lakhs d) No such stipulation

16 Minimum Loan amount in case of SBI Realty Loan



17 SBI Reality can be sanctioned as

a) Term Loan Only b) Over Draft Only

c) TL and OD d) TL/DL and OD

18 Maximum Loan Tenor for SBI Realty Loan

a) 60 Months b) 90 Months

c) 120 Months d) 180 Months

19 Minimum Loan amount under SBI-MAXGAIN scheme


c) Rs15.00 Lakhs d) Rs.20.00 Lakhs

20 What is the maximum loan for category-2 customers under Home Top-up Loan



21 Minimum age stipulation for borrowers under SBI-Tribal Plus Home loan

151

scheme


c) 25 years d) 18 years for women and 21 years for men

22 Maximum Loan amount under SBI-Tribal Plus Home loan scheme


c) Rs.50.00 Lakhs d) Rs.75.00 Lakhs

23 Processing fee for home loans financed under PMAY

a) As per normal bank

scheme

b) 50% of the normal

bank charges

c) No processing fee for

EWS/LIG

d) No processing fee

24 Minimum age for the first borrower for SBI Reverse Mortgage Loan



25 Under what category SBI Suraksha loans are classified in P-Report

a) Home Loans b) Personal Loans

c) Other Personal Loans d) Unsecured Loans

26 Processing fee for Personal loan against property (P-LAP)

a) 0.50% of Loan amount plus GST maximum :

Rs.25000/-

b) 1.00% of Loan amount plus GST

maximum : Rs.50000/-

c) 0.50% of Loan amount plus GST maximum : Rs50000/-

d) 1.00% of Loan amount plus GST

27 Maximum Home loan amount under Non-Salaried Segement

a) Rs.10.00 Crores b) Rs.20.00 Crores

c) Rs.25.00 Crores d) Rs.50.00 Crores

28 Maximum ceiling under home loan Hamara Ghar Scheme

a) Rs.10.00 Lkahs b) Rs.20.00 Lakhs

c) Rs.30.00 Lakhs d) Rs.50.00 Lkahs

29 What is not the eligibility criteria for Insta Home Top Up Loan

a) Minimum Home Loan amount with INB facility

b) Satisfactory Track Record of 1 years

c) CIBIL Score of 550 d) Minimum Residual tenure of Home loan of 5 years

30 Minimum and Maximum loan amounts under Insta Home Top Up loan scheme

a) Rs.1.00 Lakh/Rs.5.00 Lakhs b) Rs.3.00

Lakhs/Rs.10.00 Lakhs

c) Rs.5.00 Lakhs/Rs.10.00

Lakhs

d) Rs.5.00

Lakhs/Rs.15.00 Lakhs

31 Nature of facility under Insta Home Top up Loan scheme

a) TL only b) OD only

152

c) TL or OD as per customer request

d) OD with reducing DP only

32 Maximum Tenor under Insta Home Top-up Loan scheme



33 CERSAI has been established as a company under

a) Section 20(1) of the SARFAESI Act

b) Section 201 of BR Act

c) Section 20(1) of Companies

Act

d) Section 201 of

Companies Act

34 If a borrower makes a cash deposit to his loan account in a non-home

branch charges applicable as under

a) Normal non-home charges b) No charges if account is standard

c) No charges if account is NPA

d) No charges

35 Execution of documents on the basis of POA is available only to those borrowers

a) Defence Services and Para Military forces

b) NRIs

c) Only a &b d) No such stipulation

36 Two valuation reports mandatory for home loan amount of

a) Rs.1.00 crore and above b) Above Rs.1.00 crore

c) Rs.1.00 crore if property situated at Non-metro

centres and Rs.2.00 crore if situated at metro centres

d) Rs.1.00 crore if property situated at

RUSU centers and Rs.2.00 crore if situated at

urban/metro centres

37 A house valued Rs1.00 crore and how much loan that we can sanction

under Reverse Mortgage Loan Scheme

a) Rs. 90.00 Lakhs b) Rs.85.00 Lakhs

c) Rs.80.00 Lakhs d) Rs. 75.00 Lakhs

38 How much will be the fixed Tenure in interest rate in the product SBI HAMARA GHAR?

a) 1 Year b) 2 Years

c) 3 Years d) 5 Years

39 What is the minimum existing Home Loan limit to get Insta Top up Loan?

a) Rs.5.00 Lakh b) Rs.10.00 Lakh

c) Rs.15.00 Lakh d) Rs.20.00 Lakh

40 What is the validity of the Insta Top Up Loan offer for a eligible Home Loan borrower?

a) 30 days b) 1 Month

c) 90 days d) 3 Months

41 Under what conditions the second Insta Home Top Up loan will be

permitted?

153

a) Only on the condition that 1st Insta Top up Loan is

closed

b) Only On the condition that there is a gap of

one year from the date of opening the pervious Insta Top -

Up Loan.

c) Both A &B d) None of the above

42 What will be the processing fee levied for Insta Home Top Up Loan?

a) A flat processing fee of Rs.1000/- plus applicable

taxes

b) A flat processing fee of Rs.2000/- plus

applicable taxes

c) A flat processing fee of

Rs.2500/- plus applicable taxes

d) No processing fee for

Insta Home Top Up Loan

43 What is the maximum Loan Amount that can be borrowed under the

product SBI BRIDGE LOAN?

a) Rs.1.00 Crore b) Rs. 2.00 Crore

c) Rs.5.00 Crore d) Rs.3.00 Crore

44 What is the maximum Loan Tenor for the product SBI Bridge Home Loan?



45 Which of the following product(s) can be considered for meeting the

shortfall in funds for purchase of a new home/flat?

a) SBI Bridge Loan b) Loan against Property

c) Both A&B d) None of the above

46 How is the Terms &Conditions accepted by the customer validated in an Insta Home Top-Up Loan?

a) One Time Password (OTP) b) Simple letter to Branch

c) E Mail from registered mail address with Bank

d) All of the above

47 What will be the moratorium period for the repayment of Insta Home Top-

Up Loan?

a) No moratorium b) 6 months

c) 3 months d) 1 month

48 What is the minimum loan amount that can be borrowed through SBI Privilege and SBI Shaurya Home Loan products?

a) Rs.5.00 Lakh b) Rs.10.00 Lakh

c) Rs.15.00 Lakh d) Rs.20.00 Lakh

49 What is the minimum Loan Term for SBI Privilege and SBI Shaurya Home Loan products?

a) 3 years b) 3 years excluding

moratorium


50 What is the processing fee charged in case of SBI Privilege and SBI Shaurya Home Loan products?

a) Flat fee of Rs.2000/- b) Normal processing

154

fee applicable to Home Loans

c) 50% concession in normal processing fees applicable

to Home Loans with a minimum of Rs.2000/-

d) Processing fee waived

51 What is the maximum age limit under SBI Privilege &SBI Shaurya Home

Loan products?

a) 55 Years b) 60 Years


52 Under which condition NRIs can borrow loan under Loan Against Property scheme?

a) Only if own residential property or commercial

property in his/her own name

b) If own residential property or commercial property in

his/her own name Or in the name of spouse/ children

c) If own residential property

or commercial property in his/her own name Or in the name of spouse/

children/parent/sibling

d) NRIs cannot avail loan

under this scheme

53 What is the minimum Loan Tenor under the Loan Against Property scheme?



54 What is the maximum amount of loan that can be borrowed under Loan against Property scheme if property is located at Non-BPR urban Centres?

a) Rs.1.00 Crore b) Rs.2.00 Crore

c) Rs.3.00 Crore d) No such separate stipulation if property is

located at Non-BPR centres

55 How long the Valuation Report is valid for calculating the LTV ratio under

SBI Loan Against Property scheme?

a) Not more than 1 month old b) Not more than 2 months old

c) Not more than 3 months old

d) Not more than 6 months old

56 What is the eligibility criterion for SBI Corporate Home Loan?

a) Only if Company is in the line of business for at least

3 years and have earned uninterrupted Net Profit in last three years

b) Only if Company is in the line of business for at least

3 years and have earned uninterrupted Gross Profit in last three years

c) Only if Company is in the line of business for at least 5 years and have earned

uninterrupted Net Profit in

d) Only if Company is in the line of business for at least 5 years and have earned

uninterrupted Gross Profit

155

last three years in last three years

57 What is the maximum amount of loan that can be borrowed under SBI Corporate Home Loan?

a) Rs.100 Crores b) Rs.200 Crores

c) Rs.500 Crores d) No cap

58 What will be the processing fee levied for SBI Corporate Home Loan?

a) 0.35% of Loan amount plus applicable taxes

b) 0.50% of Loan amount plus applicable taxes

c) 1.00% of Loan amount

plus applicable taxes

d) Flat Rs.1,00,000/-

irrespective of loan amount.

59 What benefit is provided by SBI Flexipay Home Loan?

a) Provides Loan amount of 1.5 times the eligible

amount

b) Provides Loan amount of 1.25 times the eligible

amount

c) Provides Loan amount of 1.2 times the eligible

amount

d) Provides Loan amount of 1.15 times the eligible

amount

60 Under Home Top-up Loan Over draft facility available for limits

a) Up to Rs.20.00 Lacs b) Above 20.00 Lacs and upto Rs.2.00 Crores

c) Above 2 Crores and Up to

5 Crores

d) All of the above

61 Which one of the following is not an advantage of Retail Credit.

a) Retail Loans are stable and growing

b) To build a strong customer base

c) Minimal requirement of

human resources

d) Low credit risk

62 Maximum repayment term in respect of Educational Loans

a) 15 years after

commencement of repayment

b) 15 years from the date of

sanction

c) 10 years after

commencement of repayment

d) 7 years after commencement of

repayment

63 If any proposal is not acceptable and rejected, the applicant borrower should be

advised as per the format;

a) Annexure G-1 b) Annexure G-2

c) Annexure B-1 d) Annexure B-2

64 Un stamped document will be inadmissible in evidence in court law as per section

a) 35 of Indian Stamp Act 1899

b) 36 of Indian Stamp Act 1899

c) 35 of Indian Stamp Act 1889

d) 36 of Indian Stamp Act 1889

156

65 Under stamped document will be inadmissible in evidence in court law as per section

a) 35 of Indian Stamp Act 1899

b) 36 of Indian Stamp Act 1899

c) 35 of Indian Stamp Act 1889

d) 36 of Indian Stamp Act 1889

66 If the document to be executed at different states the same can be done by

paying the _____________ as applicable to the either of the places of execution.

a) Lowest stamp duty b) Highest Stamp duty

c) Lowest and Highest at both the states

d) No such provision

67 Execution of Documents should be done at

a) RACPC/Branch Premises/

Applicant Residence/Business Place

b) Mutually agreed place by the

Mobile Team

c) Special Documents

Execution Desk (SED)

d) All of the above

68 Savings Bank Account/other Deposit Account is mandatory for a home loan

borrower

a) At the time of receipt of housing loan application

b) The customer should open account before sanction of home

loan

c) Can be opened before disbursement

d) Not mandatory

69 Home Loan disbursements should be done in the following mode(s) only

a) RTGS/NEFT/Bankers

Cheque

b) Demand Draft

c) Through electronic payment mode

d) Both A&B

70 In case of Independent houses under construction, property insurance should be taken

a) At the time of disbursement of first installment

b) At the time of disbursement of final installment

c) After receipt of occupancy certificate

d) No such condition stipulated

71 Post disbursement inspection of vehicle must be carried out within _______ days from the date of disbursement in respect of auto loans


c) 30 days d) 1 month

72 If repayments are in arrears for two successive months, inspection should

be conducted with in

a) Immediately b) Within 7 days

c) Within 10 days d) Within 15 days

73 In case NPA accounts, inspections should be conducted at

157

a) Monthly Intervals b) Quarterly Intervals

c) Half Yearly Intervals d) Yearly Intervals

74 Dishonor of ECS or SI provides punishment under

a) Section 22 of PSS Act 2007 b) Section 23 of PSS Act 2007

c) Section 24 of PSS Act 2007 d) Section 25 of PSS Act 2007

75 Section 25 of PSS Act 2007 provides punishment similar to

a) Section 138 of NI Act b) Section 139 of Ni Act

c) Section 140 of NI Act d) All the above

76 When a cheque dishonored on account of insufficient funds, the branch has to give a notice in writing to the drawer within


c) 30 days d) Immediately

ANSWERS - MCQ ON HOME LOANS

Q 1 2 3 4 5 6 7 8 9 10

ANS b c a b c c a c b d

Q 11 12 13 14 15 16 17 18 19 20

ANS b b d a a b a c d b

Q 21 22 23 24 25 26 27 28 29 30

ANS b a d c b b d c b a

Q 31 32 33 34 35 36 37 38 39 40

ANS d d a d c a a b d a

Q 41 42 43 44 45 46 47 48 49 50

ANS c b b a a a d b c d

Q 51 52 53 54 55 56 57 58 59 60

ANS d c b a c a d b c b

Q 61 62 63 64 65 66 67 68 69 70

ANS c a b a a b d c d a

Q 71 72 73 74 75 76 77 78 79 80

ANS b a c d d b

158

STUDENT LOANS, UNSECURED PERSONAL LOANS,

NPA MANAGEMENT, SOURCING OF LOAN APPLICATIONS

1 Under 'SBI Skill Loan scheme' validation of course fee structure is required to be

done by the PBBU of the Circle concerned in case of Private Institutions, for loan

of Rs.______and above.

a) Rs.5000/- and above b) Rs.25000/- and above

c) Rs.50000/- and above d) Rs.100000/- and above

2 Margin required to be brought in by the borrower for Student Loans up to Rs. 4.00 Lac is ........and above Rs. 4.00 Lac is......for studies in India.

a) 5% and 15% b) 5% and 10%

c) 10% and 15% d) Nil and 5%

3 The Nodal Bank for implementing Central Government's Interest Subsidy scheme for Education Loans in the country is

a) State Bank of India b) Bank of Baroda

c) Canara Bank d) Andhra Bank

4 The maximum time limit for conveying sanction/ rejection of an Education Loan

is...................from the date of receiving the application along with all supporting documents.


c) 20days d) 25 days

5 As per Reserve Bank of India guidelines, for the purpose of reporting Priority

Sector Lending, education loans with outstanding upto.........................(for studies in both India and abroad) will only be taken into consideration.



6 To be eligible for Subsidy under Interest Subsidy Scheme on Education Loan for

Economically Weaker Section (EWS)-CSIS, the annual gross parental/ family income of the applicant borrower should not be more than


c) Rs.10.00 lacs d) Rs.15 lacs

7 Ministry of HRD along with the Department of Financial Services, Government of

India has launched a common portal............................................... for students to apply for education loans and to facilitate tracking and follow-up of the loan

a) Gyan Laxmi Portal b) Vara Laxmi Portal

c) Vidya Laxmi Portal d) Veera Laxmi Portal

8 Purchase of Books/equipments/instruments etc considered for student loan

should be capped at ____ % of tuition fees.

a) 10% b) 20%

c) 5% d) 15%

9 What is the margin prescribed for Scholar Loans above Rs 7.50 lacs

a) 5% b) 10%

c) 15% d) Nill

10 Processing fees for SBI Global Ed-Vantage Scheme is

a) Rs.15000/- b) 1% of Loan Component

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c) Rs.10000/- d) 1.5% of Loan Component

11 Cost of two wheeler up to Rs.________/- can be included in the expenses considered eligible for finance under student loan if secured by suitable third party guarantee and/or tangible collateral security.

a) Rs.50000/- b) Rs.55000/-

c) Rs.60000/- d) RS.75000/-

12 As a measure of de-risking the Education Loan portfolio, every effort must be made that the students who are availing Education Loans _____________ should be suitably covered by _______________

a) Above Rs.10 lacs, Life Insurance Policy

b) Above Rs.7.50 lacs, Personal Accident Insurance Policy

c) Above Rs.7.50 lacs, Life Insurance

Policy

d) Above Rs.10.00 lacs, Personal

Accident Insurance Policy

13 For all Abroad Education Loans, the initial deposit of Rs.______/- required to be

made in the form of a Bankers cheque by the students.

a) Rs.15000/- b) Rs.20000/-

c) Rs.10000/- d) Rs.5000/-

14 In respect of the Education Loans to the wards of the staff members, which of the following is not correct?

a) Repayment period is 240 months

b) Prior Administrative clearance is not necessary

c) No lien should be noted against

the PF balance of the staff member

d) A mandate for deduction of the

installment due from the salary/pension should be obtained

15 What is the minimum and maximum loan amounts can be considered under SBI GLOBAL ED-VANTAGE scheme?

a) Min: Rs. 20 lacs and Max: Rs.1.00

crore

b) Min:7.50 lacs and Max: Rs.1.00

crore

c) Min: Rs.20 lacs and Max: Rs.1.50

crores

d) Min Rs.10.00 lacs and Max:

Rs.1.50 lacs

16 In respect of takeover of education loans for limits above Rs.10.00 lacs, how many CICs to be obtained.

a) 2 b) 3

c) 4 d) 5

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17 CGFSEL stands for

a) Credit Guarantee Fund Scheme for Small Entrepreneur Loans

b) Credit Guarantee Fund Scheme for SME Entrepreneur Loans

c) Credit Guarantee Fund Scheme for

Secured Entrepreneur Loans

d) Credit Guarantee Fund Scheme for

Education Loans

18 What is the annual guarantee fee (AGF) under CGFSEL scheme

a) 0.75% p.a. of the limit sanctioned b) 0.50% p.a. of the limit sanctioned

c) 0.50% p.a. of the outstanding amount

d) 0.75% p.a. of the outstanding amount

19 The CGFSEL will provide guarantee cover to the extent of

a) 100% of the amount in default

b) 75% of the amount in default

c) 25% of amount in default

d) 50% of the amount in default

20 What is the maximum period to invoke the guarantee in respect of education loans from the date of NPA in CGFSEL scheme

a) 1 year from the date of NPA

b) 30 days from the date of NPA

c) 90 days from the date of NPA

d) 270 days from the date of NPA

21 Under XPress Credit scheme, Maximum Loan amount for Teachers of Government

School is 24 times NMI. What is maximum loan amount for Teachers in Government Aided Schools?

a) 12 times of NMI

b) 12 times of Gross Salary

c) 24 times of NMI

d) 24 times of Gross Salary

22 What is the maximum repayment period for XPress Credit scheme

a) 72 months

b) 60 months

c) 48 months

d) 120 months

23 In case of Xpress credit No prepayment/ foreclosure charges will be applicable if the

account is closed from the proceeds of a new loan account opened under the same scheme. Otherwise, a prepayment penalty of – will be charged

a) 1%

b) 4%

c) 2% d) 3%

24 In Xpress credit scheme of personal loans as overdraft facility, maximum amount of loan can be sanctioned up to:

a) 15 lacs b) 10 lacs

c) 20 lacs

d) No maximum ceiling

25 The term “FORCE NUMBER” will be used by

a) Army forces b) Central Armed Police Forces

c) Navy forces d) Air Force Staff

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26 Overdraft facility for Salary Package account holders is limited to................months

..............salary

a) 6 months of net salary b) 2 months of gross salary

c) 2 months of net salary d) 6 months of gross salary

27 What is the validity period of offer made to preselected customer for SBI Insta Credit?

a) 1 month

b) 2 months

c) 3 months

d) 6 months

28 SBI Insta Credit facility to be sanctioned in the form of

a) Term Loan

b) Demand Loan

c) Overdraft

d) Both Demand Loan and OD

29 A Public Sector Unit Officer is having gross monthly salary of more than Rs 2 lacs per month, and maintains salary account with HDFC bank. Which variant of personal loan is

best suited for him/her.

a) Insta Credit

b) Xpress Elite

c) Xpress Credit

d) Xpress Power

30 Maximum loan limit under Xpress Power Scheme is

a) 5 lacs

b) 10 lacs

c) 15 lacs

d) 20 lacs

31 Xpress Credit for Salary Account holders of other Banks is called

a) Insta Credit

b) Xpress Elite

c) Xpress Credit

d) Xpress Power

32 Xpress Elite is a Personal Loan variant for senior officials of the Central/ State

Governments, Defence Establishments, PSUs and Quasi Government Bodies drawing a monthly gross salary of above

a) Rs.1.00 lac b) Rs.2.00 lacs


33 What is the maximum loan amount which can be sanctioned under Xpress Elite?



34 Recently our Bank has launched a personal loan product variant named to cater to the personal needs of salaried employees working with Govt Dept/ PSUs etc and earning a net monthly income of at least Rs. 100000.00. Can you name the product?

a) Xpress IT Employees b) SBI Insta Credit

162

c) Xpress Elite d) Xpress Credi

35 Under Xpress Credit scheme, concession of Rs 250/- in processing fees can be provided if the applicant submitting which of the following 3 (three) particulars?

a) PAN,ADHAAR, EMPLOYEE ID b) PAN, ADHAAR,PASSPORT

c) PAN, ADHAAR, MOBILE NUMBER d) PAN,ADHAAR,VOTER ID

36 Xpress Credit- IT Employees will be considered for the employers in IT/ITes industry

who are the members of

a) ASSOCHAM

b) NASSCOM

c) ICC

d) BCCI

37 The Minimum NMI for IT employees under Xpress Credit- IT Employees scheme is stipulated at Rs._______/-

a) 100000/-

b) 75000/-

c) 50000/-

d) 25000/-

38 Which variant of Xpress Credit requires security as Third Party Guarantee?

a) Xpress Credit loan to non permanent Employees

b) Xpress Credit-IT Employees

c) Xpress Power

d) Xpress Elite

39 What is the maximum loan can be considered under Xpress Credit loans to Non permanent Employees if the NMI is Rs.50000/- and above

a) Rs.8 lacs b) Rs.10.00 lacs


40 What is the repayment period for pensioners and family pensioners, if the age of the pensioner is 72 years at the time of sanction

a) 24 months

b) 48 months

c) 36 months

d) 60 months

41 What is the maximum cap on loan amount for a pensioner with an age of 72 years

a) 18 months’ pension with a ceiling of Rs.7.50 lacs

b) 18 months’ pension with a ceiling of Rs.12.00 lacs

c) 18 months’ pension with a ceiling of Rs.14.00 lacs

d) 18 months’ pension with a ceiling of Rs.10.00 lacs

42 Under JAI JAWAN Pension Loan scheme, what is the loan amount stipulated for family pensioners.

a) Rs.5.00 lacs b) Family pensioners are not eligible


43 EMI/NMP (Equated Monthly Instalment/ Net Monthly Pension) should not exceed ___

163

% in case of Pension Loan

a) Regular Pensions 50%, Family Pensions 25%

b) Regular Pensions 50%, Family Pensions 50%

c) Regular Pensions 50%, Family

Pensions 60%

d) Regular Pensions 50%, Family Pensions

33%

44 Under Pension Loan to Coal Mines Provident Funds (CMPF) Employees, sanctioning branch has to send duly certified scanned copy of the PPO and copy of the latest life

certificate for verifying genuineness to

a) SBI, DHANBAD branch

b) SBI, HUSNABAD branch

c) SBI, BHAVNAGAR branch

d) SBI, HYDERABAD branch

45 What is the maximum overdraft limit under Platinum variant of Corporate Salary Package

a) 40000 b) 75000

c) 200000 d) 150000

46 Overdraft under Corporate Salary Package has to be liquidated within a maximum period

of

a) 12 months

b) 9 months

c) 6 months

d) 18 months

47 Rs.40000/- Overdraft limit has been restricted to which variant under OD facility in corporate salary package accounts

a) Silver

b) Gold

c) Diamond

d) Platinum

48 Maximum Loan eligibility for Diamond variant under e-Commerce Purchases

a) 75000

b) 25000

c) 50000

d) 40000

49 How many CIC reports to be obtained in case of a loan amount above Rs.4.00 lacs in respect of xpress credit loans

a) 5 b) 4

c) 2 d) 3

50 In respect of Risk Mitigated Product- Xpress Credit scheme, no. of EMIs to be created as

Debt Reserve Current Account fund

a) 2 b) 5

c) 3 d) 4

51 You are the Branch Manager of MMGS-II Branch. Competent Authorities have approved filing of civil suit and transfering the outstanding to Recalled Assets Account, however

empanelled Advocate requests you to permit him to file the case in Civil Court after 5 months as he is going abroad for some personal work. Which course of action will you take?

164

a) To identify another advocate for filing of suit in court within 1 month

from the date of approval from controller.

b) To identify another advocate for filing of suit in court within 3 months from

the date of approval from controller.

c) To identify another advocate for filing of suit in court within 2 months from the date of approval from

controller.

d) To wait for the advocate till he return back to India after his vacation.

52 Your Field Officer is in a confused state of mind regarding type of recovery measures whether Soft or Hard Recovery Measure to be initiated by a Branch when loan account

becomes NPA. Which of the following is a hard recovery measure?

a) Reminders b) Telecalling

c) SARFAESI d) Compromise

53 A Centralized Loan Collection System (LCS) has been introduced by our Bank to automate the process of following up of delinquent customers for collection and

recovery of due amount in ………. segment loans.

a) AGR segment b) PER Segment

c) SIB segment d) C&I segment

54 Through Centralized Loan Collection System (LCS), follow-up can be made for …………types of accounts.

a) delinquent customers including written off and AUCA accounts

b) RG-3 accounts

c) SMA 2 Accounts d) SME 3 accounts

55 As per RBI Classification SMA-0 is a category where……..

a) Principal or interest payment

overdue between 31-60 days

b) Principal or interest payment overdue

between 61-90 days

c) Principal or interest payment not overdue for more than 30 days but

acount showing signs of incipient stress

d) Principal or interest payment overdue between 91-180 days

56 As per the Standard Operating Procedure on Settlement of Bank's Dues through Compromise, an initial deposit of at least ……% of offer amount is obtained from the Borrower as an evidence of his intention to pursue the compromise settlement with the

Bank.

a) 10% b) 5%

c) 15%

d) 20%

57 In case of Compromise Settlement for arriving at the compromise amount for cases

where the value of security is Rs. 1 cr and above , two valuation reports from Bank's approved valuers have to be obtained and the ........... value has to be taken into account for deciding the compromise amount

a) Higher b) Lower

c) Average d) None of the above

165

58 An award made by the Lok Adalat is deemed to be a

a) Decree of a Sessions court

b) Decree of a civil court

c) Decree of a criminal court

d) Decreee of a Special Court

59 The valuation report should be less than ……………months/ year old for sale of properties for initiating / considering under Private Treaty/SARFAESI Act 2002 and Settlement of dues through compromise.

a) 12 b) 24

c) 36 d) 48

60 Branches can participate in Lok Adalats to be organised by DRTs/DRATs involving an amount up to Rs…………………….

a) Rs.1.00 lacs

b) Rs.5.00 lacs

c) Irrespective of loan amount

d) Rs.10.00 lacs

61 You are the Chief Manager of the RACPC in a Metro Centre, your Maintenance Officer requests to guide him regarding how many notices are required to be sent to the

borrower (Other than Guarantor) before effecting the sale of the Car?

a) 6 notices

b) 3 notices

c) 2 notices

d) 1 notice is sufficient

62 Monetary ceiling of cases in Lok Adalats to be organised by DRTs/DRATs

a) Rs.5 lacs b) No limit for DRTS/DRATS


63 Who is the authorized officer for seizure of vehicles under Loan agreement,

a) Sanctioning authority of any scale

b) Sanctioning authority of IV and Above

c) CM (CRO) at RBO

d) RM of the region

64 For seizure under SARFAESI act, what is the amount due

a) NO Minimum amount

b) The amount due should not be less than 15% of principal plus interest

c) The amount due should not be less than 20% of principal plus interest

d) The amount due should not be less than 10% of principal plus interest

65 Your Credit Officer has come to you for doubt clarification. He wants to know what is the amount to be deposited by the Borrower with the Appellate Tribunal when Borrower

has decided to file an Appeal with DRAT?

a) 25% b) 75%

166

c) 50% d) 10%

66 All existing AUCAs of Rs.__________ lacs and above in NBG have to be migrated to

SARG.

a) Rs.10 lacs

b) Rs.15 lacs

c) Rs.20 lacs

d) Rs.25 lacs

67 What is the arrear condition in CBS in respect of CC/OD accounts for an irregularity of Age of stock statement >=97 days

a) 612 b) 613

c) 614

d) 611

68 In respect of CC/OD/DL/TL account, if the irregularity >=90 days, what is the arrear condition in CBS

a) 701 b) 702

c) 704 d) 704

69 What is the notice period prescribed for seizure of vehicle under SARFAESI act

a) Minimum 30 days of notice for

seizure and Minimum 60 days notice for intended sale

b) Minimum 60 days of notice for seizure

and Minimum 30 days notice for intended sale

c) Minimum 45 days of notice for seizure and Minimum 30 days notice for intended sale

d) Minimum 60 days of notice for seizure and Minimum 45 days notice for intended sale

70 LCTS stands for

a) Legal Cases Transaction Software

b) Legal Cases Termination System

c) Legal Cases Tracking System

d) Legal Cases Training System

71 Name of the campaign launched by our Bank to encourage staff members to source more and more leads of our Home Loans from friends and relatives.

a) Griha Tara b) Griha Sitara

c) Griha Shobha

d) Griha Ratna

72 Full form of OCAS

a) Online Customer Acquisition

System

b) Online Customer Acquisition Solution

c) Online Consumer Acquisition System

d) Online Consumer Acquisition Solution

73 Which of the following is not an external sourcing entity

a) ALC b) ELC

c) BST d) SSL

167

74 The role of HLC limited to

a) KYC Verification

b) Sourcing

c) Pre Sanction Survey

d) Post Sanction Survey

75 When our Bank has entered into tie-up arrangement with SBI CAPS SECURITIES LIMITED (SSL)

a) 30.03.2015

b) 30.03.2014

c) 30.03.2016

d) 30.03.2013

76 Which of the following is not the member in tripartite partnership with our Bank

a) Deal4Loans

b) PaisaBazaar.com

c) LoanBazaar.com

d) Bank-bazaar.com

77 What is the maximum repayment period for SBI SKILL LOAN scheme for loans between Rs.50000 to Rs.1.00 lac

a) UP to 3 years b) Up to 5 years

c) Up to 7 years

d) Up to 12 years

78 What is the maximum loan amount that can be sanctioned under PAPL scheme

a) 2.00 lacs

b) 1.00 lac

c) 3.00 lacs

d) 4.00 lacs

79 Shri Raju is an employee working in Central Government PSU and earning a net salary of Rs 76,000/- per month and maintains salary account with your branch. What is the

maximum amount of Xpress Credit loan which can be sanctioned to him?

a) 9.12 lacs

b) 15 lacs

c) 18.24 lacs

d) 20 lacs

80 Ms Swetha Menon is a teacher in one of Government aided school in Kerala earning a gross salary of Rs 22,000/-. What is the maximum amount can be sanctioned to her under Xpress Credit loan scheme?

a) 5.28 lacs

b) 2.50 lacs

c) 5.25 lacs d) 2.64 lacs

168

ANSWERS TO MCQ ON STUDENT LOANS, UNSECURED PERSONAL LOANS, NPA MANAGEMENT, SOURCING OF LOAN APPLICATIONS

Q 1 2 3 4 5 6 7 8 9 10

ANS c d c a d a c b d c

Q 11 12 13 14 15 16 17 18 19 20

ANS a c d a c a d c b a

Q 21 22 23 24 25 26 27 28 29 30

ANS b a d a b c a b d c

Q 31 32 33 34 35 36 37 38 39 40

ANS d a b c c b d a d d

Q 41 42 43 44 45 46 47 48 49 50

ANS c b d a c c a a c c

Q 51 52 53 54 55 56 57 58 59 60

ANS b c b a c b a b a c

Q 61 62 63 64 65 66 67 68 69 70

ANS a b a c b a d c b c

Q 71 72 73 74 75 76 77 78 79 80

ANS a b c b a c b a b d

169

MCQ ON AUTO LOANS, OTHER DEMAND LOANS

1

What is the minimum age limit for sanction of car loan?


c) 25 Years d) No specific Age criteria

2 What is the minimum Net Annual Income required for a salaried person to become eligible for car loan?

a) Rs.2 Lakhs b) Rs.2.50 Lakhs

c) Rs.3 Lakhs d) Rs. 4.00 Lakhs

3 What is the minimum Net Annual Income required for an Businessmen to

become eligible for car loan?

a) Rs.2 Lakhs b) Rs.2.50 Lakhs

c) Rs.3 Lakhs d) Rs. 4.00 Lakhs

4 What is the maximum loan amount that can be sanctioned to a salaried person under our car loan scheme?

a) 30 times of NMI b) 36 times of NMI

c) 48 times of NMI d) 60 times of NMI

5 What is the maximum loan amount that can be sanctioned to an Agriculturist under our car loan scheme?

a) 3 times of NAI b) 4 times of NAI

c) 5 times of NAI d) No such stipulation

6 Please select the EMI/NMI ratio of an applicant, whose Net Annual Income is up

to Rs.10 lacs under Car Loan Scheme.

a) Not to exceed 30%

b) Not to exceed 40%

c) Not to exceed 50%

d) Not to exceed 55%

7 The maximum cost of accessories, extended warranty and total maintenance should not exceed _____% of the ex-showroom cost of the vehicle or Rs. ____________, whichever is lower.

a) 5%; 25000

b) 10%; 25000

c) 5%; 50000

d) 10%; 50000

8 Customers under Salary Package / Tie –up need to maintain ____% as margin for car loans

a) 5%

b) 10%

c) 15%

d) No margin requirements

9 Women borrower gets ______% in interest rate concession under Car loan Scheme?

a) 0.05% b) 0.10%

c) 0.25% d) No interest concession availbale

170

10 What is the preliminary CIC report to be taken for car loan applicants

a) CIBIL

b) CRIF High Mark

c) Equifax

d) Experien

11 What is the minimum CIC score required for Car Loans of Rs.20 lacs and above

a) Score of 600 and above

b) Score of 650 and above

c) Score of 700 and above

d) Score of 750 and above

12 Under Universal Distribution Network for marketing of our Car loans, bank has

entered into corporate tie-up with _____?

a)

SBI Life Insurance Company Ltd

b) SBI CAPS Securities Ltd

c)

ICICI Direct

d) Motilal Oswal

13 How many year’s IT Returns OR Form 16 required for a salaried person for

sanction of car loan

a) Last 1 year

b) Last 2 years

c) Last 3 years

d) Last 4 years

14 What is the Maximum repayment period for Car loan scheme?


c) 7 Years

d) 8 Years

15 What is the pre-payment penalty for car loans?

a) 0.5% of the pre-payment amount

b) 1% of the pre-payment amount

c) 1.5% of the pre-payment amount

d) No prepayment penalty

16 Car loan EMI can be re-set if the loan outstanding is at least _________ lacs and reduction in rate of interest is __________% or more.

a) 1 lac and 1%

b) 2 lacs and 2%

c) 5 lac and 5%

d) 5 lac and 1%

17

What is the Turn Around Time (TAT) for processing the Car Loan proposals?

a) 2 days b) 7 days

171


18 Vehicle registration details are to be verified from __________ website.

a) vehicle.gov.in

b) vahan.nic.in

c) vehicle.nic.in

d) vahan.gov.in

19

What is meant by Combo Car Loan?

a) Financing for two cars

b) Financing for Home and Car

c) Financing for two wheeler

d) Financing for Car and Two Wheeler

20 Under NRI Car Loan Scheme, the loan must be closed before borrower attains the age of ________years.

a)

60 years

b) 65 years

c) 70 years

d) 75 years

21 What is the minimum Net Annual Income (NAI) of the applicant to become eligible under NRI Car Loan Scheme

a) US $ 5000 or its equivalent b) US $ 10000 or its equivalent

c) US $ 12000 or its equivalent

d) US $ 15000 or its equivalent

22 What is the maximum loan amount sanctioned under NRI Car loan scheme?

a) 12 times of Net Monthly income b) 15 times of Net Monthly income

c) 18 times of Net Monthly income d) 24 times of Net Monthly income

23 What is the minimum Net Annual income required for sanctioned of car loan

under SBI Loyalty Car Loan Scheme?

a) Rs.2,00,000/-

b) Rs.2,50,000/-

c) Rs.3,00,000/- d) Rs.4,00,000/-

24 What is the eligible amount under SBI Assured Car Loan Scheme?

a) 50% of the FDR

b) 60% of the FDR

c) 75% of the FDR

d) 100% of the FDR

25 What is the minimum loan amount under SBI Super Bike Loan Scheme?

a) Rs.2,00,000/- p.a. b) Rs.2,50,000/- p.a.

c) Rs.2,75,000/- p.a. d) Rs.3,00,000/- p.a.

26 In respect of Car Loans, if the borrower fails to get the vehicle registered, with

hypothecation charge in favour of the Bank, within _________ days from the date of disbursement, charge of Rs. __________ per month may be recovered.

a) b)

172

60 days 2,500/- 120 days 2,500/-

c) 60 days 5,000/-

d) 120 days 5,000/-

27 What is the Maximum loan sanctioned under SBI Lite Scheme?

a) Rs.4,00,000/-

b) Rs.5,00,000/-

c) Rs.7,00,000/-

d) Rs.10,00,000/-

28 To become eligible under SBI Lite Car Loan Scheme, the applicant must have SB/CA in his/her name or in the name of the business entity for at least ____

years

a)

6 months

b) 1 year

c) 2 years

d) 3 years

29 Under SBI Lite Car Loan Scheme, what is the CIBIL Score required if the applicant is NOT residing in own/parental house?

a) 600 and above

b) 650 and above

c) 700 and above

d) 750 and above

30 What is the Maximum Loan Tenor under SBI Lite Car Loan Scheme?

a) 3 years

b) 4 years

c) 5 years

d) 6 years

31

What is the Minimum CIBIL score for car loans to Pensioners?

a) 600 and above

b) 650 and above

c) 700 and above

d) No CIBIL cut off score required

32 What is the Minimum CIBIL score for car loans for Agriculturists?

a)

600 and above

b)

650 and above

c) 700 and above

d) No CIBIL cut off score required

33 What is the minimum age for sanction of Gold Loan under SBI Personal Gold Loan Scheme?


173


34 What are the Minimum and Maximum loan amounts that can be sanctioned under SBI Personal Gold Loan Scheme?

a) Rs.10,000 and Rs.10 lacs

b) Rs.10,000 and Rs.15 lacs

c) Rs.20,000 and Rs.20 lacs

d) Rs.20,000 and Rs.15 lacs

35 What is the margin to be maintained under SBI Personal Gold Loan Scheme?

a) 10%

b) 20%

c) 25%

d) 35%

36 What is the maximum repayment period under SBI Liquid Gold Loan Schme?

a) 12 Months

b) 18 Months

c) 24 Months

d) 36 Months

37

Which department in the Bank advises the Market Value and Advance value in respect of the gold loans?

a) PBBU Department b) Precious Metals Department

c) GITC Department

d) Banking Operations Department

38 What is the maximum repayment period permitted for staff gold loans, sanctioned for the purpose of education/land or building purchase/medical expenses?

a) 24 months

b) 36 months

c) 48 months

d) 60 months

39 Which of the following is not the accepted method in verifying genuineness and

purity of gold ornaments?

a)

Touch Stone Method

b) Nitric Acid Test Method

c) Specific Gravity Test Method

d) Weighing method

40 Notice under Section _________ has to be served to defaulting borrower before initiation auction in Gold Loans.

a) 167 of Indian Contract Act

b) 176 of Indian Contract Act

c) 167 of N.I. Act

d) 176 of N.I. Act

174

41 Interest on the account of deceased Gold Loan Borrower to be charged at ____ Rate

a) No interest to be charged from

date of death of borrower

b) SB rate of interest to be charged in

Gold loan of deceased borrower

c) Interest at contracted rate to be charged

d) Interest at 1 year MCLR rate to be charged

42 Insurance for the Gold Retention Limit of the branch will be obtained by ______ department at _________ every year.

a) PPBU, 1st July every year b) PPBU, 1st March every year

c) Banking Operations Department, 1st July every year

d) Banking Operations Department, 1st July every year

43 What is the periodicity for verification of PER Segment Gold Loan Ornaments at the branches?

a) Monthly by officer other than joint custodian

b) Quarterly by officer other than joint custodian

c) Half Yearly by officer other than

joint custodian

d) Yearly by officer other than joint

custodian

44 For conducting auction of Gold ornaments, prior approval of ________ is required

a) AGM - RBO

b) DGM (B&O)

c) Branch Manager

d) No prior approval is required

45 What is the Maximum loan sanctioned against SBI Mutual Fund, when the units are in Demat Format?

a) Rs.1,00,000/- b) Rs.5,00,000/-

c) Rs.10,00,000/- d) Rs.20,00,000/-

46 What is the margin to be maintained while sanctioning loan against NSCs/KVPs?

a) 30% of FV + accrued interest b) 40% of FV + accrued interest

c) 45% of FV + accrued interest d) 50% of FV + accrued interest

47 What is the margin to be maintained while sanctioning loan against Insurance Policies?

a) 5% of surrender value b) 10% of surrender value

c) 15% of surrender value d) 20% of surrender value

48 What is the minimum age limit for availing advance against RBI Relief Fund?

a) Individuals with 18 years of age b) Individuals with 19 years of age

c) Individuals with 20 years of age d) Individuals with 21 years of age

49 What is the minimum loan amount sanctioned under Sovereign Gold Bonds Scheme?

a) Rs.10,000/- b) Rs.20,000/-

c) Rs.50,000/- d) Rs.1,00,000/-

50

Please expand OPAS

a) Online Project Approval System

b) Online Project Approved System

175

c) Online Project Assessment System

d) Online Paper Approval System

ANSWERS - MCQ ON AUTO LOANS, OTHER DEMAND LOANS

Q 1 2 3 4 5 6 7 8 9 10

ANS b b d c b c c b a d

Q 11 12 13 14 15 16 17 18 19 20

ANS c b b c d d a b d b

Q 21 22 23 24 25 26 27 28 29 30

ANS c c a d b d a b c c

Q 31 32 33 34 35 36 37 38 39 40

ANS d c a c c d b d d b

Q 41 42 43 44 45 46 47 48 49 50

ANS c d b c d b a d b a

176

MCQ ON AGRI PRODUCTS AND FINANCIAL INCLUSION

1 Under the Broiler plus scheme, the loan can be sanctioned to

a) New farmers b) Existing farmers

c) Both of above d) None of the above

2 Mr Subba Rao a new enterpreuner wants to avail loan under Broiler plus scheme

a) He should have experience

b) He should undergo training in poultry

c) Both of the above

d) Any one of the above

3 What is the minimum economic size of the flock under Broiler Plus

a) 500 birds

b) 5000 birds

c) 1000 birds

d) No such stipulation

4 What is the rearing period of the birds under Broiler plus

a) 5 weeks

b) 6 weeks

c) 7 weeks

d) 10 weeks

5 What is the maximum loan that can be sanctioned to a farmer under Broiler plus

a) Rs 5 lacs

b) Rs 7 lacs

c) Rs 9 lacs

d) Rs 10 lacs

6 What is margin requirement under broiler plus

a) 10%

b) 15%

c) 20%

d) 25%

7 What is the DSCR requirement under broiler plus schme

a) 1.25 b) 1.40

c) 1.50

d) 1.75

8 For which of the following the lloan under broiler plus is sanctioned

a) Construction of poultry shed b) Feed room

c) equipment d) All of the above

9 Collateral security requirement under broiler plus

177

a) Mortgage of land on which the poultry shed and other infrastructure are available or are proposed to be

constructed to cover at least 50% of the value of the advance

b) Mortgage of land on which the poultry shed and other infrastructure are available or are proposed to be constructed to cover at

least 100% of the value of the advance

c) Mortgage of SARFAESI compliant land

on which the poultry shed and other infrastructure are available or are proposed to be constructed to cover

at least 50% of the value of the advance


10 Repayment under broiler plus is

a) The entire loan is repaid along with interest within 5 years inclusive of

grace period of 6 months

b) The entire loan is repaid along with interest within 5 years exclusive of grace period of

6 months

c) The entire loan is repaid along with

interest within 5 years inclusive of grace period of 6 months with

instalments at bi monthly intervals

d) The entire loan is repaid along with interest

within 5 years exclusive of grace period of 6 months with installments at monthly

intervals

11 Which of the following important activities are covered under PMMY Allied Agri

1) Dairy 2) Piggery 3) Agri clinic 4) Bee keeping

a) 2,4 are correct

b) 3 is correct

c) 1,2,3 are correct

d) All are correct

12 What is maximum loan ceiling under PMMY allied Agri

a) Rs 5 lacs

b) Rs 10 lacs

c) Rs 25 lacs

d) Rs 7.5 lacs

13 Select the incorrect statement under PMMY Allied Agri

a) Max loan Rs 10 las

b) Margin upto Rs 50000/- is Nil

c) Inspection charges are waived

d) Individual farmers are eligible under the scheme

14 Repayment under PMMY Alliec Agri

a) 3-5 yrs b) 1-5 years

178

c) 3-7 years

d) 1-7 years

15 What is the min DSCR under the scheme

a) 1.25

b) 1.50

c) 1.75

d) 2.00

16 Who provides the credit guarantee cover

a) CGFDU

b) CGFMU

c) CGTMU

d) CGTDU

17 Under the PMMY alliea agri scheme, branches to ensure end use of fundsby verification of assets and collection of invoices within

a) 15 days b) 1 months

c) 3 months

d) 4 months

18 Which is false statement

a) CIC reports are must

b) Processed through LOS only

c) Credit scoring to be used

d) Pre sanction is waived

19 Mr Raghavaiah has submitted all the required document s for processing of loan under PMMY alliecd agri on 03/10.2018, maximum by which date the loan should be sanctioned

a) 8/10/2018 b) 15/10/2018

c) 17/10/2018

d) 10/10/2018

20 In order to cover the seasonal fluctuations in cash flow, particularly in New dairy product

under tie up, which type of instalments are prescribed

a) EMI

b) BMI

c) Negotiaged repayment

d) DMI

21 Which is largest producer of milk in the world

a) Denmark

b) USA

c) India

d) China

179

22 What is the tag line of AMUL

a) Best of india

b) The taste of india

c) AMUL doodh peeta hai India

d) Asli milk

23 Which part of India has highest population of pigs

a) N E states

b) Southern states

c) Western states

d) North Indian states

24 Sunday ho ya Monday roj khao aande, is popular slogan of

a) NECC

b) Central Poultry development org

c) Ministry of Agri d) Venkateswara Poultry

25 Which committee recommended the concept of SHG

a) M S Gore b) R V Gupta

c) S K Kalia d) Kalyansunderam

26 What is maximumship in SHG

a) 15 b) 20

c) 25

d) 10

27 How much amount is paid tolocal book writers engaged in maintain the books

a) Rs 20 per SHG

b) Rs 25 per shg

c) Rs 50 per shg d) Rs 100 per shg

28 KYC verification at the time of account opening of SGHG is

a) Verification of all members of SHG b) Only few members would suffice

Only office bearers verification suffice d) No KYC is required for SHG account

29 What is maximum credit limit sanctioned to SHG

a) Rs 25000/- per SHG member

b) Rs 50000/- per SHG member

c) Rs 100000/- per SHG member

d) Rs 75000/- per SHG member

30 Mainly SHG- bank linkage is of how may types

a) 2

b) 3

c) 4

d) 5

31 To be eligible for credit linkage the SHG should have been active existence for

180

a) 3 m

b) 6m

c)

9m

d) 12m

32 Choose the false statement

a) The SHG is maintaining proper records

b) Should have preferably homogeneous group

c) SHG should have good track record in their funcioning

d) SHG members can have multiple membership in two or more SHG

33 What is group Corpus, 1) balance in savings bank account of SHG 2) Amount utilized in internal lending 3) Cash balance with SHG

a) 1+2-3 b) 2+3-1

c) 1+3-2 d) 1+2+3

34 While apprising SHG loans, what are margin and security gudelines

a) Margin 5%, No security

b) No margin and No security

c) Margin Nil Security 50% d) None of the above

35 SHG loan amount is disbursed fully in

a) Cash only b) By credit to NGO account

c) By issuing BC favouring SHG

d) By transfer to individual accounts of members

36 What is the incentive amount paid to NGOs

a) Rs 500 /- per SHG

b) Rs 700 /- per SHG

c) Rs 750 /- per SHG

d) Rs 1000 /- per SHG

37 What is DAY-NRLM

a) Deendayal Antyodaya Yojana-

National rural livelihood mission

b) Deenbandhu Antyodaya Yojana-National

rural livelihood mission

c) Deendayal Antyodaya Yojana-

National rural livelihood module

d) Deendayal Antyodaya Yojana-National rural

learning mission

38 DAY NRLM replaced the ____scheme wef 01.04.2013

a) SGSY

b) SGSRY

c) PMRY d) NEGP

181

39 Which among the following microfiance models has a concept of member,group,and centre

a) SHG model

b) Graeen model

c) JLG model

d) NGO model

40 If more than 20% of the members can read and write, how will you rate the SHG

a) Very good

b) Good

c)

Satisfactory

d)

Bad

41 DAY-NRLM provide Revolving fund support to SHGs in existence for a minimum period of

a) 3/6 months b) 6/9 months

c) 12 month d) 9/12 months

42 Which subsidy is discontinued under DAY-NRLM

a) RBI SUBSIDY b) NABARD SUBSIDY

c)

CAPITAL SUBSIDY

d) REVOLVING SUBSIDY

43 How many districts are identified under DAY-NRLM

a) 150

b) 200

c) 250

d) 300

44 What is the eligibility criteria for credit linkage of women SHG under NRLM

a) Min score of 71

b) Min score of 70

c) Min score of 75

d) Min score of 76

45 The existing defunct SHG are also eligible for credit if lthey are revived and continue to be active for min period of


c) 6 m

d) 12 m

46 Under DAY*NRLM loan amount for first dose is

a) 4-8 times of corpus during the year or Rs 50000/- which is lower

b) 2-4 times of corpus during the year or Rs 50000/- which is lower

182

c) 4-8 times of corpus during the year or Rs 50000/- which is higher

d) 2-4 times of corpus during the year or Rs 50000/- which is higher

47 The loan to SHGs can sanctioned as

a) Term Loan

b) Cash Credit

c) Over draft

d) Either TL or CC

48 What is maximum amount of loan that can be santioned to SHGs without collateral

a) Rs 5 lacs b) Rs 7.5 lacs

c)

Rs 10 lacs

d) Rs 15 lacs

49 Who prepares Potential linked plans

a) LDM b) RBO

c) NABARD d) SLBC

50 The second dose of loan is repaid in

a) 12-24 m

b) 24-36 m

c) 24-60m

d) 12-60m

51 Individual BC provides a security deposit of Rs

a) 25000/- b) 40000/-

c) 50000/-

d) 100000/-

52 What should be the minimum qualification of Customer service provider

a) 8th pass

b) 10th pass

c) 12th pass

d) Graduate

53 Who will do the due diligence while appointing the CSP

a) Link Branch

b) RBO

c) LHO

d) National BC

54 Which among the following is not the role and responsibility of Business Correspondent

a) Wear standard blue uniform provided

by the bank

b) Undergo training and certification

183

c) Adhere to fair codes for lending

d) Not to provide any other banking financial services other than bank’s

55 Who will ensure that due diligence is done on the CSP and also obtain Police verification before appointment

a) Corporate Centre

b) LHO

c) Link Branch

d) Business Correspondent

56 Books maintained by the BC, Select the incorrect one

a) Customer Contact Regster

b) Customer Call Register

c) Daily Trasnsaction Register

d) Complaint Register

57 What are the business handled by the CSP

1)Opening SB accounts 2)Deposit in loan accounts 3)Providing mini statement4)Sale of micro/insurance/mutual fund/pension products decided by bank

a) 1,2 are correct b) 1,2,3 are correct

c) 1,2,3,4 are correct d) 1,2,4 are correct

58 What are the business handled by the CSP 1)Seeding Aadhar Number 2)Deposit in loan accounts 3)Tatkal remittance under IMPS 4)Distribution of Coins and Bank notes

a) Only 1 & 4

b) Only 2 &3

c) All of 1,2,3,4

d) Only 1,2,3

59 Timings of CSP to provide financial services to customers on behalf of bank

a) 10 am to 8 pm

b) 8am to 8 pm

c) 10 am to 5 pm

d) 8 am to 6 pm

60 CSP should display the following boards at the kiosks, select false statement

a) Instructions regarding Rupay cards

b) Products and services avaialable

c) Training certificate

d) Fair Banking codes (BCSBI

61 The following books to be maintained at Kiosk, select the incorrect one

184

a) Visiting officials register b) Transaction register

c) Suggestions cum complaint register

d) Pass book issued register

62 Who appoints the National BC

a) IBA b) Corporat Centre, SBI

c) RBI d) NABARD

63 Who will provides the policy guidelines,operational instructions, and overseas the functioning of FI initiatives at the Bank

a) ABU dept at CC

b) FI & Micro finance dept at CC

c) Outreach dept at CC

d) FI & GC at GITC

64 The FI initiatives are implemented through technology called

a) Kiosk application

b) CSP application

c) BC application

d) FI application

65 The vertical of FI & MF is headed by _____at CC

a) DMD b) CGM

c) GM d) MD

66 The vertical head FI & MF at CC reports to

a) CHAIRMAN

b) MD (NBG)

c) DMD(COO)

d) DMD (CCO)

67 FI & MF dept at LHO is headed by

a) DGM

b) GM

c) AGM

d) CM

68 All the national BC and circle BC submit their CSP credentials to

a) CC

b) RBI

c) IBA

d) LHO

69 Who will ensure CSPs are active and business targets are achieved

a) Link branch b) RBO

c) Admin Office

d) LHO

70 Who will monitor the performance of the BCs

a) Link Br b) LHO

185

c) RBO

d) CC

71 Who’s responsibility is to ensure achieving the targets set in FI plan

a) BM of Link Br

b) CM CS at RBO

c) CM (RB&FI)

d) CM (C&R) at RBO

72 Who’s responsibility to ensure increase in Financial literacy in the region

a) CM(RB&FI)

b) CM(CS&CM)

c) CM AT NODAL BR

d) CM (C&R)

73 In small accounts what is cap on maximum balance

a) Rs 200000/- b) Rs 100000/-

c) Rs 50000/- d) Rs 20000/-

74 Basic Savings Bank Deposit accounts are, choose the incorrect one

a) Full KYC compliant accounts

b) No upperlimit on maximum balance

c) Basic ATM cum Debit card is issued

d) Enabled at specific branches

75 What is the accident insurance cover for PMSBY

a) Rs 100000/- b) Rs 200000/-

c) Rs 400000/-

d) Rs 500000/-

76 How the progress in FI is measured

a) NSDL INDEX

b) CRISIL Inclusix Index

c) RBI index d) Literacy Index

77 Which among the following is a statutory body for ensuring Financial Stability & Financial

development in India

a) NSFE b) FSDC

c) PMDY d) FILC

78 The Adhar enabled payment system is an interoperable payment platform offered by

a) IMPS b) NACH

c) NPCI d) IBA

79 The age of subscriber for Atal pension Yojana should be between

186

a) 21-40

b) 18-50

c) 21-50

d) 18-40

80 What is minimmum deposit under Sukanya Samrudhi Yojana

a) Rs 100

b) Rs 1000/-

c) Rs 250/-

d) Rs 500/-

187

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS c c b c c d b d a c

Q 11 12 13 14 15 16 17 18 19 20

ANS d b c a c b b d c d

Q 21 22 23 24 25 26 27 28 29 30

ANS c b a a c b b c b b

Q 31 32 33 34 35 36 37 38 39 40

ANS d d d b a c a a b a

Q 41 42 43 44 45 46 47 48 49 50

ANS a c c b a a d c c a

Q 51 52 53 54 55 56 57 58 59 60

ANS c c a a d b c c b d

Q 61 62 63 64 65 66 67 68 69 70

ANS d b b a b c a d d c

Q 71 72 73 74 75 76 77 78 79 80

ANS c b c d b b a c d c

188

MCQ ON AGRI PRODUCTS AND FINANCIAL INCLUSION

By VVN Sastry

1 Kisan Credit Card has emerged as an innovative credit delivery mechanism to

meet the production credit requirements. A farmer approaches for sanction of sprayer, while sanctioning his KCC limit. Can we accede to his request?

a) No, as limit sanctioned for sprayer

comes under investment credit

b) As sprayer is also required for

production of crops the request should be considered

c) Investment credit requirement for

Agriculture and allied activities repayable within a period of one year form a part of KCC limit.

d)

None of these

2 KCC limit can be sanctioned to

a) Farmers who own Agricultural land

b) Agricultural land taken by farmers

on on lease to grow crops

c) land cultivated as tenants / share

croppers

d) All of the above

3 Which proposals under KCC are considered as ‘good’

a) Proposals of credit score of 50 and

above

b) Proposals of credit score of 60 and

above

c) Proposals of credit score of 70 and

above

d) Proposals of credit score of 71 and

above

4 What are RBI guidelines with regard to obtaining ‘No Dues’ certificate from individual farmers while sanctioning KCC loan

a) Dispensed with obtention for loans upto Rs: 25,000/-

b) Dispensed with obtention for loans upto Rs: 50,000/-

c) To be obtained only for loans of above Rs: 50,000/-

d) Dispensed with obtention of ‘No Dues’ irrespective of the amount involved in rural and Semi-urban

areas

5 KCC will be sanctioned as a

a) Demand Loan b) Term Loan

c) revolving cash credit account d) None of these

6 What are the minimum and maximum ceilings for sanction of KCC?

a) No minimum or maximum limit (Need based finance)

b) Minimum of Rs: 10,000/- Maximum of Rs: 3,00,000/-

c) Minimum of Rs: 10,000/- No Maximum limit

d) Minimum of Rs: 10,000/- Maximum of Rs: 5,00,000/-

7 Margin to be maintained while sanctioning KCC limit

a) 15% b) No margin is required

c) 25% d) 15% to 25% on a case to case

basis

8 KCC is sanctioned for a period of

a) One year b) One crop season

c) 5 years with review on an yearly basis

d) 3 years with review on an yearly basis

189

9 The SOF is the crop-wise estimate about cost of cultivation and loan requirement are worked out and prescribed by

a) SLBC b) DLTC

c) DCC d) SLTC

10 In KCC the limit will be stepped by ___% each year and the limit for 5th year will be ______% of first year limit.

a) 10…150 b) 10….125

c) 5…150 d) 15…150

11 Composite limit (flexi KCC limit) of Rs:___________ to Rs: ________ for

marginal farmers may be sanctioned, based on land holdings

a) 5,000/- , 10,000/- b) 10,000/- , 25000/-

c) Upto Rs: 5,000/- d) 10,000/- , 50,000/-

12 Interest subvention of ___% will be provided by Government of India

a) 2% b) 3%

c) 4% d) None of these

13 Interest Subvention is provided by Government of India for loans

a) Upto Rs: 3.00 Lakhs per season per farmer

b) Upto Rs: 3.00 Lakhs per year per farmer

c) Of any amount of per season per farmer

d) None of these

14 In case of non-payment within the repayment due dates, interest will be applied

at

a) card rate, compounded at monthly

rests

b) card rate, compounded at

quarterly rests

c) card rate, compounded at half yearly rests

d) card rate, compounded at yearly intervals

15 Processing charges for KCC to be collected

a) On Maximum Drawing Limit b) On Maximum Permissible Limit

c) Rs 1000/- irrespective of loan amount sanctioned

d) No processing Charges to be collected for KCC

16 Collateral security is waived for KCC limit up to Rs.____ lacs for loans with tie-up

arrangement

a) 5 b) 3

c) 2 d) 1.5

17 For Kharif crop, (mono) Crop cultivation period (Loan disbursement period) is from ________ and repayment due date is __________ where DLTC has not

fixed the repayment date

a) 1st October to 31st March….31st

Jan

b) 1st April to 30th Sept….30th June

c) 1st April to 30th Sept…..31st May d) 1st April to 30th Sept … 31st January

18 For Rabi crop (mono), Crop cultivation period (Loan disbursement period) is from ________ and repayment due date is __________ where DLTC has not fixed the repayment date

a) 1st October to 31st March….31st July

b) 1st October to 31st March….31st January

c) 1st October to 31st March….31st d) 1st October to 31st March….31st

190

July May

19 Credit balance in the account will be eligible for interest at _______ rate.

a) Savings Bank b) Bank

c) Short Term Deposit d) No interest will be paid

20 Short duration crops are those crops raised

a) Upto 9 months b) Upto 3 months

c) Upto six months d) Upto 12 months

21 short duration crops will be treated as NPA, if the installment of principal or interest thereon remains overdue for ______ crop season(s)

a) Four b) Three

c) Two d) One

22 A loan granted for long duration crops will be treated as NPA, if the installment of principal or interest thereon remains overdue for ____crop season(s)

a) Four b) Three

c) Two d) One

23 A Joint Liability Group (JLG) is an informal group of ____ individuals

a) 5-10 b) 4-10

c) 10-20 d) 15-25

24 The loan for a JLG can be granted

a) Only on individual basis b) Only on group mechanism

c) Individually or for a group d) None of these

25 NABARD provides grant assistance to Bank for formation, nurturing and financing of new JLGs @ Rs______ per JLG.

a) 5,000 b) 2,000

c) 1,000 d) 500

26 Considering that loan to be granted is against the mutual guarantee offered by the group, maximum amount of loan may be restricted to Rs._______ per individual

a) 10,000 b) 50,000

c) 25,000 d) 1,00,000

27 The loan to value ratio prescribed by RBI under Agriculture Gold loan scheme is

a) 50% b) 60%

c) 65% d) 75%

28 No appraiser charges up to Rs.__________ in Circles of Chennai, Hyderabad & Kerala

a) 25,000 b) 50,000

c) 1,00,000 d) 75,000

29 Produce Marketing Loan can be sanctioned to those farmers

a) Who had availed crop loan from us b) Who had availed crop loan from

other Banks

c) Who had Not availed crop loans d) Any of these

30 A maximum amount of Rs: _________ Lakhs for a maximum period of ______ can be sanctioned under Produce Marketing loan

a) 50, 12 Months b) 10, 12 Months

c) 50, 6 Months d) 10, 6 Months

191

31 Collateral security shall be waived up to a limit of Rs_____ for farmer’s produce stored in his own godown

a) 5.00 Lakhs b) 3.00 Lakhs

c) 2.00 Lakhs d) 1.00 Lakh

32 Collateral security is waived for produce stored in Collaterally managed Warehouses is Rs: ________

a) 50 Lakhs b) 25 Lakhs


33 What is the margin prescribed on Agricultural Produce stored in Collateral

Managed warehouses falling under Category – A is

a) 10% b) 15%

c) 25% d) 40%

34 What is the margin prescribed on Agricultural Produce stored in Collateral Managed warehouses falling under Category – B is

a) 20% b) 15%

c) 25% d) 40%

35 No cash disbursement will be permitted for loans beyond Rs __________ under Produce Marketing Loans

a) 10,000 b) 15,000

c) 20,000 d) 25,000

36 Exposure Norm for sanctioning Produce Marketing loans stored in godowns

financed by us is

a) 75% of the storage capacity of

Warehouses/Cold-Storages

b) 100% of the storage capacity of

Warehouses/Cold-Storages

c) 60% of the storage capacity of Warehouses/Cold-Storages

d) 50% of the storage capacity of Warehouses/Cold-Storages

37 The interest subvention is available on PML for a period of ___ months;

a) 3 b) 4

c) 6 d) 12

38 Minimum and Maximum quantum of loan that can be sanctioned under Asset backed Agricultural loan is Rs:______ & Rs_______

a) 5.00 Lakhs, 100 Lakhs b) 5.00 Lakhs, 200 Lakhs

c) 10 Lakhs, 100 Lakhs d) 3.00 Lakhs, 200 lakhs

39 Maximum LTV ratio under Asset backed Agricultural loan is

a) 50% b) 55%

c) 60% d) 65%

40 Immovable Property (Land and Building) for value not less than ____% of the loan amount by way of first charge is obtained for sanction of Asset backed Agricultural loan

a) 155 b) 150

c) 135 d) 105

41 While sanctioning Asset backed Agricultural loan the mortgaged property should be located within the radius of _____Kms from branch.

a) 20 b) 25

c) 30 d) 35

192

42 Tatkal (Mortgage free) tractor loan can be sanctioned to High Net worth farmers who are capable of purchasing tractor with cash who secures _______ under

Tractor Credit Scoring Model

a) 70 & above b) 65 & above

c) 60 & above d) 55 & above

43 Minimum land holding for a farmer under Tatkal (Mortgage free) tractor loan is

a) 1.5 Acres b) 2.00 Acres

c) 2.5 Acres d) 5.00 Acres

44 A minimum DSCR of ______ is required for loan sanctioned under Tatkal

(Mortgage free) tractor loan

a) 1 : 1.5 b) 1.5 : 1

c) 1 : 1.75 d) 1:75 : 1

45 What is the Turn Around Time (TAT) prescribed under Tatkal (Mortgage free) tractor loan from the date of submission of all the required documents/papers

a) 2 days b) 3 days

c) 5 days d) 7 days

46 custom hiring should not exceed ____ of the repayment obligations while calculating eligibility, under Tranctor loan under Tie-up

a) 40% b) 50%

c) 60% d) 70%

47 While financing for Combine Harvesters the farmers should own atleast ____

acres of land and the Minimum DSCR should be ____

a) 5, …1.50 b) 8, …1.50

c) 6, …1.5

d)

8, …1.75

48 The time schedule for completion of project and submission of documents for

sanctions under Agriculture infrastructure with total financial outlay of Rs: 500 lakhs and above is



49 The time schedule for completion of project and submission of documents for sanctions under Agriculture infrastructure with total financial outlay upto Rs: 500 lakhs is



50 For Cold Storages, Maximum permissible subsidy shall be subject to original invoices and in no case more than Rs._____ crore, whichever is lower.

a) 5 b) 6

c) 7 d) 7.50

193

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS c d d d c c b c b a

Q 11 12 13 14 15 16 17 18 19 20

ANS d a a c a b d c a d

Q 21 22 23 24 25 26 27 28 29 30

ANS c d b c b b d c d a

Q 31 32 33 34 35 36 37 38 39 40

ANS d a c a c b c d d a

Q 41 42 43 44 45 46 47 48 49 50

ANS b a b b a b d c b d

194

Organizational Structure

1 Which of the following is the correct Business Group nomenclature in our Bank?

a) Corporate Banking Group b) Retail Banking Group

c) Risk Management Group d) Corporate Accounts Group


a) Corporate Banking Group b) Retail & Digital Banking Group

c) Subsidiaries Group d) Stressed Assets Group


a) Stressed Assets Resolution Group

b) Corporate Banking Group

c) Risk Management Group

d) Retail Banking Group


a) Information Technology

b) Risk Focused Internal Audit

c) Risk, IT & Subsidiaries

d) Commercial Clients Group

5 DMD(Global Markets) reports to

a) MD (Global and Digital Banking)

b) MD ( Global Banking and Risk)

c) MD (Digital & Corporate Banking)

d) MD(Global Banking & Subsidiary)

6 Chief Ethics Officer reports to

a) DGM &CDO

b) DGM &CFO

c) Chief Vigilance Officer

d) CGM & Chief Strategy Officer

7 DMD & CIO Officer reports to

a) CGM & Chief Strategy Officer

b) MD (Risk, IT & Subsidiaries)

c) Chairman d) CGM & GCO

8 CGM (Circles) reports to

a) MD (Corporate Banking)

b) MD (National Banking)

195

c) MD(Retail & Digital Banking) d) DMD & CDO

9 DMD (Internal Audit) reports to

a) DMD & CFO

b) DMD & CDO

c) Chief Vigilance Officer d) MD (Risk, IT & Subsidiaries)

10 MD (Stressed Assets Resolution Group) reports to

a) Chief Ethics Officer b) Chairman

c) Chief Vigilance Officer d) CGM & Chief Strategy Officer

11 As Per 2017-18 Annual Report what is our Share of transactions in Alternate Channels

a) 60%

b) 40%

c) 80% d) 50%

12 Number of customers as per 2017-18 Annual Report

a) 42.42 Crore

b) 52.52 Crore

c) 39.39 Crore d) 32.32 Crore

13 What is the Market Share of Home Loans

a) About 18%

b) About 42%

c) About 28% d) About 32%

14 What is the Market Share of Auto Loans

a) About 41% b) About 45%


15 What is the Percentage Share of Digital Transaction in Total Transactions

a) 27% b) 47%

c) 37% d) 57%

16 Among which of the following Non- Banking Subsidiaries / Joint Ventures SBI Holds 100% ownership

a) SBI Pension funds Private Limited

b) SBI Infra Management Solutions Pvt Ltd

c) SBI Cards and Payments Pvt Ltd d) SBI Global factors Limited

17 Among which of the following Non- Banking Subsidiaries / Joint Ventures SBI does not hold 100% ownership

a) SBI Infra Management Solutions Pvt Ltd

b) SB I Foundation

c) SBI Capital Markets d) SBI Life Insurance Company Limited

18 Among which of the following Non- Banking Subsidiaries / Joint Ventures SBI has least ownership

a) JIO payments Bank Limited b) C-Edge Technologies Limited

196

c) Oman India Joint Investment Fund

d) Macquarie SBI Infrastructure Management Private Limited

Which of the following is SBI’s Foreign Banking Subsidiary / Joint Venture in Russia

a) AIBL Mascow

b) BIBL Mascow

c) CIBL Moscow d) DIBL Mascow

20 Name which of the following is our only foreign Non- Banking Subsidiary?

a) SBI ServicosLimitada, Espana

b) SBI ServicosLimitada, Venezuela

c) SBI ServicosLimitada, Mexico

d) SBI ServicosLimitada, Brazil

21 How is our overall CAR (Capital Adequacy Ratio) with respective to Regulatory requirement ?

a) AT Par with Regulatory Requirement

b) Well above the Regulatory Requirement

c) Way below with Regulatory Requirement

d) Just below the Regulatory Requirement

22 What is our Banks Capital Adequacy Ratio

a) 13.60%

b) 12.60%

c) 11.60% d) 14.60%

23 SME Business unit works under which vertical?

a) Retail & Digital Banking

b) Corporate & Global Banking

c) Small and Medium Enterprises d) Risk, IT & Subsidiaries

24 What is the correct position of our International Operations as on March 2018

a) Network of 208 Officers across 35 Countries

b) Network of 206 Officers across 35 Countries

c) Network of 210 Officers across 35 Countries

d) Network of 252 Officers across 35 Countries

25 For our International Operations Maximum presence (with respect to number of Branches/ Subsidiaries/Offices) is in Which Country?

a) Bangladesh b) Singapore

c) Indonesia d) Nepal

26 The Merger of E-DBS (Domestic Banking Subsidiaries) & BMAL has been accounted under which of the following methods?

a) Pooling of Capital Method

b) Pooling of Asset Method

c) Pooling of Interest Method d) Pooling of Income Method

197

The Merger of E-DBS (Domestic Banking Subsidiaries) & BMAL has been accounted under which Accounting Standards?

a) AS-26 b) AS-14

c) AS-24 d) AS-21

28 As an March 2018 what is the percentage of educational loans extended to Girls Students

a) 15% b) 11%

c) 13% d) 35%

29 What is the position of SBI in Mobile Banking Market Share on the basis of Number of Transactions?

a) 1 b) 2

c) 3 d) 4

30 What is the Percentage of Gross NPA, Net NPA. Choose the Correct option?

a) 11.00%,

b) 10.91%,

c) 10.71%, d) 12.71%,

31 What is the Gross NPA of the Bank as on 2018 in crores?

a) 227,427

b) 225,427

c) 226,427 d) 223,427

32 What is the Percentage of Net NPA. Choose the Correct option?

a) 5.75% b) 5.73%

c) 5.71% d) 5.74%

33 Total Assets of the Bank as on 2018 (in Crores)?

a) 3454752

b) 3455756

c) 3445752 d) 3768012

34 Operating result during FY 2017-18 (in Crores)?

a) 91919

b) 61216

c) 59511 d) 52154

35 Profit per Employee as on March 2018 (in thousands)?

198

a) -211

b) -243

c) -311 d) -193

36 During 2017-18 What is our Expenses to Income ratio?

a) 18.50

b) 27.50

c) 50.18

d) 19.50

37 Total Number of Domestic Branches as on March 2018?

a) 28414 b) 27414

c) 29414 d) 22414

38 What is the provision coverage ratio as the end of FY 2018?

a) 66.28%

b) 66.17%

c) 72.65% d) 65.75%

39 Which among the following industries account for Maximum NPAs?

a) Textiles b) Iron & Steel

c) Power d) Telecom

40 Under Priority Sector Advances which sector is responsible for Maximum Gross NPAs (in percentage)?

a) Agri& Allied Activities b) Industry (Micro & small, Medium and Large)

c) Services d) Personal Loans

41 Under Priority Sector Advances which sector is responsible for Maximum Gross NPA amount (in Amount)?

a) Agri& Allied Activities b) Industry (Micro & small, Medium and Large)


42 Under Non-Priority Sector Advances which sector is responsible for Maximum Gross NPA amount (in Amount)?

a) Agri& Allied Activities

b) Industry (Micro & small, Medium and Large)

199


43 Under Non-Priority Sector Advances which sector is responsible for Maximum Gross NPA amount (in percentage)?

a) Agri& Allied Activities

b) Industry (Micro & small, Medium and Large)


44 Among which of the following sectors we have maximum portfolio in our e-DFS?

a) FMCG

b) Oil & Petrol

c) Auto PV d) Auto CV

45 What is the share of our Bank in Total Government Commission

a) About 60%

b) About 80%


200

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS d b a d d a b c d b

Q 11 12 13 14 15 16 17 18 19 20

ANS c a d c c b d a c d

Q 21 22 23 24 25 26 27 28 29 30

ANS b b a b d c b d b a

Q 31 32 33 34 35 36 37 38 39 40

ANS d b a c b c d b b b

Q 41 42 43 44 45

ANS a b b c b

201

Organization structure, Efficiency Parameters and History of SBI

1 Corporate Centre is headed by

a) Chief Financial officer b) Chief Vigilance Officer

c) Chairman d) Chief Technological officer

2 Circles are headed by

a) Deputy General Manager b) Deputy Managing Director

c) General Manager d) Chief General Manager

3 National Banking Group Comprises of ______ branches

a) Urban b) 16 Circle

c) Metro d) All the above

4 Strategic Training Unit (STU) is headed by

a) DMD b) CGM (L&D)

c) CTO d) All the above

5 Chief Vigilance Officer (CVO) reports to

a) DMD & CDO b) DMD & CFO

c) Chairman d) MD & CCRO

6 On recommendations of ---- Committee and through passing of an Act in parliament, Imperial Bank of India was renamed as State Bank of India on 1st July 1955

a) Gorewala b) Hilton Young Mission

c) Kelkar d) Ranganathan

7 Corporate Head Chairman is supported in his functioning by ------MDs & ------DMDs

a) 2,6 b) 4,10

c) 3,6 d) 4,12

8 SBI's Registered Office & Central Accounts Office is in -------------

a) Kolkata b) Mumbai

c) Chennai d) New-Delhi

9 How many Managing Directors (MD) under Chairman?

a) 4 b) 5

c) 6 d) 7

10 Circle Management Committee (Cir MAC) presided by_______

a) CGM b) GM

c) DGM&CDO d) DGM(CFO)

11 SBI’s share in SBI Cards & Payments Services Private Limited(SBICPSL) is ___

a) 74% b) 60%

c) 80% d) 100%

12 SBI’s share in SBI Life Insurance Company Limited(SBILIFE) is ____

a) 62.10% b) 64%

c) 74.20% d) 94.40%

13 SBIGIC(SBI General Insurance Company Limited) is a joint venture between

a) SBI & ICICI Prudential b) SBI & General Insurance Corporation of India

202

c) SBI & IAG Australia d) Wholly owned by SBI

14 Capital Adequacy Ratio (Under BASEL III) of State Bank of India stood at _______at the end of March 2016.

a) 12.60% b) 11%

c) 12.79% d) 13.12%

15 SBI’s Gross NPA , Net NPA level as at the end of Mar 2018

a) 6.50%, 3.81% b) 10.91%, 5.73%

c) 4.95%, 2.59% d) 5.05%, 3.25%

16 Net profit for the year ended 31.03.2018 is

a) Rs -7,254 cr b) Rs 9,951 cr

c) Rs 10484 cr d) Rs -6,547 cr

17 Percentage of shares held by Government of India in SBI is _____

a) 56.80% b) 58.03%

c) 50.60% d) 60.18%

18 SBI’s total assets as at the end of FY 2018 stands at

a) Rs 2700110.02 crores b) Rs 34,54,752 crores

c) Rs 2048079.80 crores d) Rs 2259063.00 crores

19 Capital Adequacy Ratio (Under BASEL II) of State Bank of India stood at

_______at the end of March 2018.

a) 10% b) 13.12%

c) 12.74% d) 13.94%

20 Imperial Bank of India, when formed in 1921, had ____ branches.

a) 7 b) 70

c) 700 d) 1000

21 Imperial Bank of India was renamed as State Bank of India on the

recommendations of ___________ through an enactment in the Parliament

a) All India Rural Credit Survey Committee (Lonawala Committee)

b) Ratnakar Committee

c) All India Rural Credit Survey Committee (Gorawala Committee)

d) All of the above

22 Risk, IT & Subsidiaries Dept headed by

a) DMD &CRO b) MD (SARG)

c) MD d) CGM & CCO

23 RBI was established on the recommendations of ____________ Mission

a) Hilton Young b) Mc Calay

c) Giffrith d) None of the above

24 National Banking Group comprises of:

a) All branches of 4 Circles b) Metro & Urban br. of 4 Circles

c) All branches of 14 Circles d) Metro & Urban branches of 14

Circles

25

How many Foreign Banking Subsidiaries do we have

a) 5 b) 10

c) 7 d) 8

26 International Banking Group (IBG) has ____ foreign offices

a) 132 b) 198

203

c) 206 d) 137

27 Which are the countries where we have a Foreign Banking Subsidiary with the name 'State Bank of India'

a) Canada & California b) USA & Russia

c) Japan & France d) UK & USA

28 Mid Corporate Group. MCG primarily caters to the banking needs of Mid

Corporate, with a turnturnover of Rs.___ crore and above or whose Fund based and Non Fund Based requirements exceed Rs.___ crore.

a) 100,50 b) 75,50

c) 50,25 d) 50,10

29 Which of the following business groups is not led by a Managing Director?

a) Corporate &Global Banking Group b) National Banking Group

c) Rural Business Group d) Risk,IT,and Subsideries

30 SIGCB STANDS FOR

a) Singapore Commercial Bank b) Small Industries Group Committee of Bangladesh

c) Shareholder/investors Grievance Committee of the Board


31 C-Edge Technologies is a joint venture between SBI and _____

a) TCS b) INFOSYS

c) COGNIZANT TECHNOLOGY

SOLUTIONS

d) WIPRO

32 Passing of State Bank of India (Subsidiary Banks) Act, 1959 enabled SBI to take

over ___ former state-associated banks.

a) 5 b) 6

c) 7 d) 8

33 The three presidency Banks received rights to issue paper currency under

a) Indian Currency Act,1806 b) Indian Currency Act,1861

c) Paper Currency Act, 1861 d) Paper Currency Act, 1806

34 Out of the following, which is the Vision of SBI ?

a) The Nation Banks on us b) Be the Bank of Choice for a transforming India

c) With you all the way d) The Banker to every Indian

35 Banking Regulation Act was earlier known as ___________

a) Banking Control Act b) Banking Administration Act

c) Banking Companies Act d) Banking Management Act

36 ________ was the first Indian to be the Chairman of Imperial Bank of India

a) Rabindranath Tagore b) Sir Badridas Goenka

c) John Mathai d) Bipin Chandra Das

37 CCRO stands for_______-

a) Corporate Centre Recovery Officer b) Circle Credit & Recovery Officer

c) Circle Credit & Risk Officer d) Chief Credit & Risk Officer

38 MCG primarily caters to the banking needs of Mid Corporate, with a turnover of

_________

a) Rs25 crore and above b) Rs10 crore and above

204

c) Rs50 crore and above d) Rs5 crore and above

39 Transaction Banking Unit handles ______

a) CMP/Trade Finance/Supply Chain Finance

b) CMP/Trade Finance

c) Total transactions in the Bank d) None of the above

40 Inspection and Management Audit in corporate centre headed by_________

a) MD b) DMD

c) CGM d) GM

41 How many Apex Training Institutes (ATI) available in our bank?

a) 4 b) 5

c) 6 d) 7

42 Expenses to Income (Operating Expenses to Total Net Income) Ratio for FY 2018 was

a) 50.18% b) 48.65%

c) 49.13% d) 59.85%

43 SBI’s Gross NPA , Net NPA level as at the end of Mar 2018

a) 6.50%, 3.81% b) 10.91%, 5.73%

c) 4.95%, 2.59% d) 5.05%, 3.25%

44 Net profit(in crore) for the year ended 31.03.2018 is

a) Rs17517.37 cr b) Rs-6,547 cr

c) Rs10891.17 cr d) Rs 9950.65 cr

45 Total deposits as at the end of financial year 31.03.2018 stands at___

a) Rs 1202740 crores b) Rs 27,06,344 crores

c) Rs1576793 crores crores d) RS 1730722 crores

46 Total advances as at the end of financial year 31.03.2018 stands at___

a) Rs 19,34,880 crores b) Rs1394409 crores

c) Rs1209829 d) RS 1463700 crores

47 Our Bank has how many ATI and SBILD across the country

a) 6,54 7,62

c) 4,49 8,53

48 Capital Adequacy Ratio (Under BASEL II) of State Bank of India stood at _______at the end of March 2018.

a) 12.74% b) 13.12%

c) 12.79% d) 13.94%

49 Which one of the following is not a Business Group

a) National Banking Group b) Corporate & Global Banking

c) Mid Corporate Group d) None of these

50 Identify Pillars of BPR

a) Branch Redesign,Sales Force b) Centralised Processing Centers

c) Alternate Delivery Channels d) All the Above

51 WBCC stands for?

a) West Bengal Circle Credit Committee

b) World Bank Credit Committee

c) Wholesale Banking Credit Committee

d) Web Banking Circle Committee

205

52 Grahak Miitra is positioned in________ area of the Branch

a) Customer Area b) Cash Department

c) Employee Area d) SWO counter

53 SBI Life Insurance is a joint venture between the State Bank of India and

a) BNP Paribas b) GE Capital

c) IAG Australia d) Society General

54 Customer Service Committee of the Board is headed by ---------------

a) DMD & CCSO b) CHAIRMAN

c) DMD & CFO d) CGM

55 Mid Corporate Group (MCG) primarily caters to the banking needs of Mid Corporate, credit requirements from

a) Rs 50 Cr to 500 cr b) Rs 500 cr above

c) Rs 5 cr to 10 cr d) Rs 10 cr to 20 cr

56 BPR is introduced as per the recommendations of which consultancy organization

a) Rangarajan Committee b) Narasimham Committee

c) Mckinsey & Co d) Tata Consultancy Services

57 Stressed Assets Management Group (SAMG), has been set up to take over all

NPAs with outstanding of Rs.------ crore and above.

a) 10 b) 20

c) 25 d) 50

58 The functionality of Loan Origination Software (LOS) refers to

a) Designing a Loan Product using

the software

b) Registration, Processing and

Generation of Loan Documents and tracking the status of Loan applications

c) NPA Tracking d) None of these

59 Transaction Banking Unit has a special focus on -----------.

a) Cash Management Product, b) Trade Finance

c) Supply Chain (Dealer/Vendor)

Finance

d) All of these

60 Identify the Pillars of BPR

a) Branch Re-design, Sales Forces b) Centralised Processing Centers

c) Alternate Delivery Channels d) All of these

61 To meet customer expectations of better and faster delivery in home Loan

Segment,our Bank undertook assured TAT Drive which resulted in a average TAT of



62 Which of the following committee will look into and manage the reduction of

liquidity and interest rate risk and optimization of returns?

a) Asset Liability Management Committee

b) Inspection and Audit Management System

c) Bank Risk Management Committee d) Corporate Risk Mitigation Department

63 As per the revised Bank's organizational structure, The Regional Manager of a

206

Region will directly report to

a) DGM (O & C) b) DGM (B & O)

c) GM (Net Work) d) CGM of the Circle

64 Which is the unit set up by Bank which performs the various services like

receiving voice calls, emails, letters, complaints from the customers, in addition to accepting the requests for cheque book, fund transfer, bill payment etc.

a) Liability Centralised Processing Center

b) Contact Centre

c) Complaint Centre d) Outbound Sales Force

65 Share of SBI in SBI Payment services pvt ltd

a) 74% b) 100%

c) 86.18% d) 60%

66 What is the role of Document Archival Centre (DAC) under BPR?

a) Decongest the Branches by

removing records maintenance

b) Execution of Bank's Loan

Documents

c) Printing of Bank's Loan Documents d) None of these

67 Facility of Issuance of Instant Personalised Photo Debit Card

a) Quick Photo debit card b) SBI Exclusive Debit card

c) Platinum Debit Card d) Achiever card

68 Net Profit of the bank for the year 2017-18 is

a) 13102 cr b) -6,547 cr

c) 10484 cr d) 9951 cr

69 Gross NPA of the bank for the FY17-18

a) 5.73% b) 10.91%

c) 3.75% d) 6.90

70 Bank deposits stood at _____ for the year ended March 2018 ( in thousands

a) 27.60 Lac Cr b) 17.30 Lac cr

c) 16.27 Lac Cr d) 20.44 Lac cr

71 Capital Adequacy of the bank for the year ended 2018 under Basel III

a) 13.11 b) 12.60

c) 12.92 d) 13.92

72 All State Bank employees, who joined after ______are covered under NPS.

a) 01.07.2010 b) 01.04.2010

c) 01.08.2010 d) 01.01.2010

73 What is the Market share of SBI in POS

a) 20.20% b) 33.33%

c) 10.20% d) 18.50%

74 What I the Share of Transactions on Alternate Channels for FY 2017-18

a) 55% b) 80%

c) 72 d) 35

75 Total number of branches in SBI FY2017-18

207

a) 22,414 b) 23,954

c) 22,986 d) 25,456

76 Market Share Deposits and Advances for FY 2017-18

12.85%,18.82% 22.84%,19.92%

15.86%,22.76% 24.92%,32.55%

77 Share of Digital Transactions in total Transactions

42% 37%

34.5% 45%

78 As on 31st March, 2018 Market Cap of SBI Life

Rs 65,452 Crore Rs 67,825 Crore

Rs 72,425 Crore Rs 45,625 Crore

79 Bank’s current Stake in SBI Life for FY 2017-18

62.10% 55.26

73.25 45.17

80 Share of SBI in SBI Cards & Payment Services Pvt ltd

a) 74% b) 100%

c) 86.18% d) 60%

81 SBI share in SBI Mutual Trust Fund Company Pvt Ltd Mutund Trustee Company Private Limited

a) 45% b) 100%

c) 86.18% d) 62.10%

82 As per Bank Policy Guidelines ROA for FY 2017-18 is

a) 0.90% b) 0.41%

c) -0.19% d) 0.68%

83 As per Bank Policy Guidelines ROE FY 2017-18 is

a) 10.49% b) -7.74%

c) 7.25% d) -3.78%

84 Who is not a Managing Director of SBI

a) Shri P. K. Gupta b) Shri B. Sriram

c) Shri Basant Seth d) Shri Dinesh Kumar Khara

85 Executive Committee of the Central Board(ECCB) is headed by

a) Chairman b) Managing Director

c) Independent Director d) Nominee Director

86 Bank’s Home Loan Portfolio for FY 2017-18 ---------% of PER Retail Loans

a) 62% b) 57%

c) 42% d) 37%

87 Gross Advances of our Bank -----------crore mark and grew at 4.91%

a) Rs 27,06,343 Crore b) Rs 19,52,507 Crore

c) Rs 20,48,387 Crore d) Rs 17,46,389 Crore

88 Agregate Deposits of the Bank for FY grew at the rate of

a) 4.68% b) 7.88%

c) 6.10% d) 2.50%

89 Total number of ATM’s,CDM’s,Recycler in our Bank as on March 2018

a) 59,541 b) 22,414

208

c) 58,274 d) 48,523

90 Market share of our Bank inATM network in India

a) 28.80 b) 32.30

c) 27.83 d) 45.23

91 “YONO” is launched on

a) 24.11.2017 b) 15.10.2017

c) 01.12.2017 d) 24.09.2017

92 Our Bank has been awarded during FY2017,2018

a) GoldenPeacock Award for Risk Management

b) Highest SHG Bank Linkages

c) Best Bank Award for Use of

Technology for Financial Inclusion

d) All of above

93 ------------a web-based application has been made operational in the FY2018,which provides self-assessment for the branches on various

parameters/aspects of Customer Delight, including infrastructure, ambience, cleanliness, display of notices and subsequentmonitoring by Controllers at various

levels for FY 2018

a) Branch Ambience Policy b) Branch Darpan

c) Branch Ambience Policy-

Platium,Gold,Silver

d) Engagement Programme

94 Cross selling Depatment is a part of ------------Group at Corporate Level

a) NBG b) CAG

c) RBU d) MCG

209

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS c d d b c a d a a a

Q 11 12 13 14 15 16 17 18 19 20

ANS a a c a b d b b c b

Q 21 22 23 24 25 26 27 28 29 30

ANS c c a d b c a d c c

Q 31 32 33 34 35 36 37 38 39 40

ANS a d c b c b d c a b

Q 41 42 43 44 45 46 47 48 49 50

ANS c a b b b a a a d d

Q 51 52 53 54 55 56 57 58 59 60

ANS c a a a c c a b d d

Q 61 62 63 64 65 66 67 68 69 70

ANS b a b b a a a b b a

Q 71 72 73 74 75 76 77 78 79 80

ANS b c a b a b b b a a

Q 81 82 83 84 85 86 87 88 89 90

ANS b c d c a b c a b a

Q 91 92 93 94

ANS a d b a

210

MCQs ON LOAN POLICY 2018-19

1 The provisions of the loan policy 2018-19 are applicable to

a) Domestic Operations b) International Operations

c) Domestic and International Operations

d) Subsidary Operations

2

In case of foreign offices, regulatory guidelines of which country have to be followed for

Banking Operations ?

a) Bank’s home country b) Host country where foreign office is located

c) Any country regulations as per the Bank Board’s choice

d) Stringent of the two will be applicable except those countries where regulatory norms stipulate applicability of only local regulatory norms.

3 Issues relating to credit policies and procedures of the bank are dealt by

a) Risk Management Committee of the Board

b) Asset Liability Management Committee

c) Credit Policy &

Procedures Committee

d) Committee on Loan Policy guidelines

4 Loan policy of the Bank has to be reviewed by the board in what periodicity?

a) Once in six months b) Once in a quarter

c) Once in a year d) As decided by the board from time to time.

5 Credit Risk Assessment models and Exposure Limits for various industries are approved

by

a) Credit Policy &


b) Credit Risk Management Committee

c) Risk Management Committee of the Board

d) Both b and c

6 All new loan products launched by the Bank have to be approved by

a) Credit Policy &


b) Credit Risk Management Committee

c) Risk Management Committee of the Board

d) Asset Liability Management Committee

7 RAROC means

a) Risk Adjusted Rate of

Capital

b) Return Adjusted Rate of Capital

c) Risk Adjusted Return of Company

d) Risk Adjusted Return on Capital

8 As per loan policy of 2018-19 Business Verticals should achieve a minimum aggregate

RAROC of

a) 20% b) 25%

c) 15% d) 40%

9 Project Loans which require complex skill sets and above a certain cut-off limit are handled by

a) CCG b) CAG

c) PFSBU d) REHBU

211

10 CCG will normally handle proposals for exposures of above

a) 10 crores b) 30 crores

c) 50 crores d) 100 crores

11 Rural Business Group comprises of

a) Agriculture Business Unit (ABU) b) Rural Non-Farm Business Unit

c) Both of the above d) None of the above

12 The progress of various State sponsored poverty alleviation / employment generation schemes is reviewed in

a) DCC / DLRC meetings b) Board meetings

c) CMC meetings d) All of the above

13 A ‘wilful default’ would be deemed to have occurred if

a) Default in repayment obligations by the unit to the Bank even when it

has the capacity to honour the said obligations

b) Default in repayment obligations by the unit to the Bank and has not utilized

the credit facility (ies) availed from the Bank for the specific purposes for

which it was availed of but has diverted the funds for other purposes

c) Default in repayment obligations by

the unit to the Bank and has siphoned off the funds so that the funds have not been utilized for the

specific purpose for which credit facility was availed of, nor are the funds available with the unit in the

form of other assets.

d) Any of the above

14

Diversion of funds means

a) Default in repayment obligations by the unit to the Bank and has also disposed off or removed the

movable fixed assets or immovable property given by it for the purpose of securing a term loan without the

knowledge of the Bank

b) Utilization of short-term working capital funds for long-term purposes not in conformity with the terms of sanction

c) Opening of current account / routing

of funds through any bank other than the lender bank or members of consortium without prior permission

of the Bank/lenders

d) Either b or c above.

15 For reporting of cases of wilful default by the banks / FIs to CICs , the limit fixed by the

Central Vigilance Commission is

a) 20 Lakhs b) 25 Lakhs


16 In case a Letter of Comfort or guarantee furnished by the companies within a Group in favour of a wilful defaulting unit is not honoured when invoked by the Bank, the group

companies are considered as

a) Defaulters b) Wilful Defaulters

212

c) Not defaulters d) A or B above as the case may be

17 Penal measures are applicable to wilful defaulters with default amount above

a) 15 lakhs b) 20 lakhs

c) 25 lakhs

d) Penal measures are applicable irrespective of default amount

18 Liability of the surety is co-extensive with that of the principal debtor is as per

a) Indian Contract Act b) Negotiable Instruments Act

c) SARFAESI Act d) Sale of Goods Act

19 The cut off limit for classifying a borrower as non-cooperative is aggregate fund- based and non-fund based facilities is

a) 10 crores b) 5 crores

c) 20 crores d) 15 crores

20 The time line for filing submission to show cause notice issued to a non-cooperative

borrower is



21 Bank cannot grant any loans and advances on the security of its own shares as per

a) RBI Act b) Banking Regulation Act

c) SEBI Act d) NI Act

22 Bank cannot grant loans and advances to the directors, and the firms in which they hold

substantial interest as per

a) RBI Act b) Banking Regulation Act

c) SEBI Act d) NI Act

23 Loans and advances aggregating Rs.25 lacs & above (Rupees twenty-five lacs and above) or its equivalent to Directors (including the Chairman/Managing Director) of

other banks is to be sanctioned by

a) CCCC b) WBCC

c) CMC d) Board of Directors/Management Committee

24 Grant of advance against NR (E) and FCNR(B) deposits would be subject to the

guidelines issued under

a) Banking Regulation Act b) RBI Act

c) FEMA Act d) FEDAI Guidelines

25 For Takeover of accounts with exposure from Rs. 25 lacs - upto Rs. 50 crores , where

External Credit Rating is not available , the CRA of the borrower should be

a) SB-10 or better b) SB-8 or better

c) SB-11 or better d) SB-7 or better

26 For Takeover of accounts with exposure from Rs. 25 lacs - upto Rs. 50 crores , where External Credit Rating is available , the CRA of the borrower should be

a) SB-10 or better and ECR should be AAA or better

b) SB-6 or better and ECR should be AAA or better

c) SB-9 or better and ECR should be BBB or better

d) SB -11 or better and ECR should be BBB or better

27 For Takeover of accounts with exposures above Rs. 50 crores , where External Credit

Rating is not available , the CRA of the borrower should be

213

a) SB-5 or better b) SB-8 or better

c) SB-6 or better d) SB-11 or better

28 For Takeover of accounts with exposures above Rs. 50 crores , where External Credit Rating is available , the CRA of the borrower should be

a) SB-9 or better and ECR should be BBB+ or better

b) SB-10 or better and ECR should be BBB+ or better

c) SB-5 or better and ECR should be AAA or better

d) SB-6 or better and ECR should be AA or better

29 For take over of accounts restructured under CDR or under JLF mechanism and accounts under rehabilitation or under OTS , approval should be obtained from

a) LHO b) DGM(B&O)

c) GM(NW)

d) Executive Committee of the Central Board(ECCB)

30 For take over of accounts audited balance sheet should not be older than



31 A company is said own or effectively control another company , if the shareholding is more than

a) 50% b) 51%

c) 60% d) 45%

32 For a company to become an associate of a parent company , the parent company should hold

a) More than 20% but less than 51% b) More than 20% but less than 50%

c) More than 10% but less than 51%

d) More than 10% but less than 50%

33 The bank’s Exposure Ceiling Limits in case of a single borrower is

a) 15% of Bank’s Capital Funds, plus an additional 5% for credit to infrastructure projects

b) 25% of Bank’s Capital Funds, plus an additional 5% for credit to infrastructure projects

c) 15% of Bank’s Capital Funds, plus an additional 15% for credit to

infrastructure projects

d) 35% of Bank’s Capital Funds, plus an additional 5% for credit to

infrastructure projects

34 The bank’s aggregate exposure to the capital markets shall not exceed

a) 30% of Bank’s Net Worth b) 50% of Bank’s Net Worth

c) 35% of Bank’s Net Worth

d) 40% of Bank’s Net Worth

35 Banks exposure to Factoring Services shall not exceed

a) 10% of the Bank’s total advances b) 20% of Bank’s Capital Funds

c) 40% of Bank’s Net Worth d) 15 % of Bank’s Capital Funds

214

41 Bank has further set in place a framework on Internal Prudential Exposure Limits (IPEL) based on

a) CRA for single borrower and group

borrowers

b) CRA for single borrower and PQI for

group borrowers

c) PQI for single and group

borrowers


42 RBI has defined unsecured exposure as an exposure where the realizable value of the security (primary plus collateral), as assessed by the Bank / approved valuers /

RBI’s inspecting officers, is ab-initio not more than

a) 20% of the outstanding exposure b) 15% of the outstanding exposure

c) 25% of the outstanding exposure d) 10% of the outstanding exposure

43 Review of term exposures (loans with residual maturity of over three years) at half yearly intervals with a view to ensuring that there is no Asset – Liability mismatch

beyond the permissible limits is done by

a) CPPD b) CRMD

c) ORMD d) RMD

44 The quantum of term exposures which can be taken in various time buckets is decided by

a) CPPC b) CRMD

c) ALCO d) RMD

45 Term Loans (loans with residual maturity of over three years) at any point of time should not in aggregate exceed

a) 40% of the total advances of the

Bank

b) 50% of the total advances of the

Bank

c) 60% of the total advances of the

Bank

d) 70% of the total advances of the

Bank

46 Bank’s exposure to real estate including residential mortgages, commercial real estate and indirect finance, etc., will not exceed

36 Large borrower is defined as a borrower to whom the Bank’s exposure exceeds

a) 10 % of the Bank’s capital funds b) 40% of Bank’s Net Worth

c) 15 % of Bank’s Capital Funds d) 20% of Bank’s Capital Funds

37 The aggregate exposure to all “large borrowers” should not exceed

a) 100% of Bank’s capital funds b) 200% of Bank’s capital funds

c) 400% of Bank’s capital funds d) 800% of Bank’s capital funds

38 RBI has issued guidelines on Large Exposure Framework (LEF) to be implemented with effect from

a) 01.04.2020 b) 01.04.2019

c) 01.04.2021 d) 01.04.2022

39 Maximum aggregate exposure in respect of Ship Breaking/ Diamond Industry shall

be

a) Rs.100 crores or its equivalent b) Rs.200 crores or its equivalent

c) Rs.50 crores or its equivalent d) Rs.25 crores or its equivalent

40 Maximum aggregate exposure in respect of Individual borrowers shall be

a) Rs. 50 crores or its equivalent b) Rs.200 crores or its equivalent

c) Rs.300 crores or its equivalent d) Rs.100 crores or its equivalent

215

a) 40% of the total advances of the Bank

b) 10% of the total advances of the Bank

c) 20% of the total advances of the Bank

d) 30% of the total advances of the Bank

47 CRMD (Industry Research) conducts study of

a) 10 industries b) 37 industries

c) 15 industries d) 27 industries

48 Desired level of current ratio applicable to Manufacturing Sector is

a) >=1.55 b) >=1.30

c) >=1.33 d) >=1.50

49 Desired level of current ratio applicable to Trade and Services Sector is

a) >=1.25 b) >=1.20

c) >=1.33 d) >=1.50

50 Desired level of DSCR applicable to Manufacturing Sector is

a) >=1.50 b) >=1.55

c) >=1.33 d) >=1.20

51 Desired level of DSCR applicable to Trade and Services Sector is

a) >=1.50 b) >=1.55

c) >=1.33 d) >=1.20

52 Desired level of TOL/Adjusted TNW applicable to Manufacturing Sector is

a) <=3.60 b) >=2.50

c) >=4.00 d) <=4.00

53 Desired level of TOL/Adjusted TNW applicable to Trade and Services Sector is

a) >=4.00 b) <=4.00

c) <=5.00 d) >=5.00

54 Hurdle rate prescribed under internal risk rating model for considering new connection or enhancement in credit limits is

a) SB-7 b) SB-8

c) SB-9 d) SB-10

55 Working capital facilities are granted for a period of

a) one year from the date of sanction b) two years from the date of sanction

c) six months from the date of sanction

d) five years from the date of sanction

56 Review/ Renewals where audited financials are more than 7 months old (listed

companies) / 9 months old for others, deviation to be approved from

a) ECCB b) CCC

c) Sanctioning Authority d) WBCC

57 unified CRA System, which is used for assessing the credit risk of borrowers for working capital, term loan and non-fund based exposures etc., to C&I, SME and

AGL segments is used for total exposures above

a) Rs.25 lakhs b) Rs.30 lakhs

c) Rs.50 lakhs d) Rs.100 lakhs

58 No new connections or enhancements in credit limits are to be considered in respect of accounts rated

a) SB-11 and worse b) SB-10 and worse

216

c) SB-5 and worse d) SB-15 and worse

59 Dynamic Review of Internal Rating of borrowers who are enjoying aggregate limits of Rs. 500 Crores/ USD 80 Mio and above in all Business Groups, including those in IBG, is to be ensured at

a) Monthly intervals b) Quarterly intervals

c) Half yearly intervals d) Yearly once

60 For units which are assigned CRA rating upto SB-10 , CRA is to be reviewed


c) Semi-Annually d) Annually

61 Turnover method is applicable for sanction of fund based working capital limit of up to

a) Rs.10 crores b) Rs.5 crores

c) Rs.20 crores d) Rs.15 crores

62 The assessment method used for assessing working capital finance for seasonal

industries like sugar, tea and construction activity is

a) Turnover Method b) Projected Balance Sheet

c) Assessed Bank Finance d) Cash Budget

63 Project Vivek is applicable for SME proposals in R & DB Vertical from

a) Rs. 25.00 Lacs to Rs. 50 Crs b) Rs. 75.00 Lacs to Rs. 50 Crs

c) Rs. 15.00 Lacs to Rs. 50 Crs d) Rs. 45.00 Lacs to Rs. 50 Crs

64 A tool which is used to establish the cash flow based turnover of the customer by

analyzing on – us and off-us bank account statement of the borrower is

a) Project Vivek b) CUE

c) PACE d) LLMS

65 The Risk Rating model for computing borrower rating on the basis of PD

(Probability of Default) is

a) Project Vivek b) CUE

c) PACE d) LLMS

66 The maturity of any term loan, including moratorium, should not normally exceed------- years baring few exceptions



67 Term Loans sanctioned and not availed within ----- months require revalidation


c) 1 year d) 6 months

68 In case of new loans to infrastructure projects, DSCR should not fall below ---- in any year during the currency of the loan

a) 1.50 b) 1.55

c) 1.25 d) 2.00

69 The period for which the Bank gives packing credit should not normally exceed



70 Post Shipment Finance can be extended upto----% of invoice value of goods.

a) 50 b) 60

c) 80 d) 100

71 The maximum period usually allowed for realization of export proceeds is------

217

73 Deferred exports are those where the realization period exceeds



74 Bank will not take any exposure in which of the following

a) Oil sector companies b) Asset Reconstruction Companies

c) Ship Breaking Industry d) Power sector companies

75 MCLR for pricing of all loans (baring few exceptions) is effective from

a) 01.04.2016 b) 01.04.2015

c) 01.04.2017 d) 01.04.2018

76 For MSE Sector (both Manufacturing and Services enterprises) no collateral security is to be obtained for loans upto



77 The sanctioning authority may consider waiving collateral security subject to

compliance with certain conditions for loans to MSE Sector (both Manufacturing and Services enterprises) upto a limit of



78 For MSE Sector (both Manufacturing and Services enterprises), the Bank has

decided to cover all eligible advances under CGTMSE upto



79 The cost of guarantee cover under CGTMSE upto Rs. 50 lacs for working capital limits is borne by

a) Borrower b) Bank

c) Borrower and Bank in ratio of

50:50

d) Waived by GoI

80 All existing mortgages and forthcoming mortgages have to be registered, on an

ongoing basis, with the Central Electronic Registry under

a) RBI Act b) Indian Contract Act

c) SARFAESI Act d) Public Liability Insurance Act

months from the date of export, for all exporters including Units in SEZs, Status Holder Exporters, EOUs, etc

a) 3 b) 6

c) 9 d) 12

72 For exposures with countries placed under “Caution” list, branches are required to seek prior clearance from

a) Respective LHO b) GMU Kolkata

c) GITC Belapur d) Respective AO in which the branch/office is located

218

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS c d c c d a d a c c

Q 11 12 13 14 15 16 17 18 19 20

ANS c a d d b b d a b a

Q 21 22 23 24 25 26 27 28 29 30

ANS b b d c d c a a d b

Q 31 32 33 34 35 36 37 38 39 40

ANS b b a d a a d b a a

Q 41 42 43 44 45 46 47 48 49 50

ANS b d b c a d b c b a

Q 51 52 53 54 55 56 57 58 59 60

ANS a d c d a c c a c d

Q 61 62 63 64 65 66 67 68 69 70

ANS b d a c b b d c b d

Q 71 72 73 74 75 76 77 78 79 80

ANS c b c b a a b d b c

219

GENERAL BANKING

1 What is the last date of submission of BMMC?

a) By 10th of succeeding month b) By 5th of succeeding month

c) By 1st Saturday of succeeding month

d) On 1st of the succeeding month

2 What is the full form of BMMC?

a) Branch Managers Monitoring Certificate

b) Branch Managers Maintenance & Compliance Report

c) Branch Managers Monthly Certificate

d) Branch’s Monthly Monitoring Certificate

3 What is full form of BCP?

a) Business complimentary programme

b) Business Continuation programme

c) Business Connection Plan

d) Business Continuity Plan

4 What is the periodicity for approval of BCP?

a) 30th June every year

b) Half yearly – June and December

c) Quarterly-May, August, November & February

d) Yearly-wef 1st April

5 Where is the Locking Up arrangement recorded?

a) Branch key register

b) Handing over/taking over register

c) BM’s personal custody

d) Branch Document Register

6 Where are the Audit Notes submitted by the RFIA Official kept?

a) Branch Documents

b) Branch Dossier

c) Register containing list of Important Registers

d) Personal file of Branch Manager

7 Fidelity Insurance cover for Tellers are to be taken by whom?

a) Branch level at reporting of teller

b) Bank level

c) RBO level upon reporting to RBO

d) At ZO level on comprehensive basis

220

8 Duplicate set of keys of a branch cannot be kept with / at:

a) CM (Compliance) at Regional Business Office

b) Treasury in case there are no other bank branches or our own branches in the centre

c) Nearest Bank Branch if there is only one branch at the centre

d) Nearest Branch of SBI if there is more than one branch in the same centre

9 What is the procedure in handling the Receipt of deposit of duplicate set of keys?

a) Entered in BD Register, withdrawn and kept with BM, against acknowledgement

b) Entered in Branch Documents Register and kept with Branch Documents

c) Entered in Miscellaneous Register and retained with Service Manager

d) Entered in Branch Key Register and keep the receipt with Branch Documents

10 Which one is not a type of Vigilance?

a) Participative Vigilance

b) Preventive Vigilance

c) Punitive Vigilance

d) Creative Vigilance

11 Which of the following is not aimed at preventive vigilance?

a) Minimizing the incidences of frauds, irregularities, lapses, etc

b) Formulating remedial measures

c) Meticulous implementation of the laid down systems and procedures/rules

d) Not initiating corrective action

12 Which of the options is incorrect in terms of Maintaining Bank Information?

a) Confidentiality

b) Non-accessibility

c) Integrity

d) Availability

13 Which of the following options is incorrect in respect of Information Security?

a) Ensure business continuity

b) Minimize business damage and maximize business opportunities

c) Regulatory requirement

d) Sharing of information would build synergy for growth of all players

221

14 Which is the correct policy which is used in the Bank to prevent fraud?

a) Whistle Blowing Policy

b) Whistle Blower Policy

c) Whistle Blown Policy

d) Whistling Policy

15 Auto Locking Arrangements need to be fitted on …?

a) Accountant’s Cubical

b) SWO’s Cubical and all doors leading to Cash Department

c) Branch Manager’s Cubical

d) All of the above

16 When should be strong room be locked?

a) After Banking hours

b) Whenever the Bank officials foresee a threat

c) While closing the Branch for the day

d) Except during the time of its operation

17 Which of the following Master Policies are not obtained by LHO?

a) Fire Insurance Policy of Bank's own building, furniture's and fixtures, stationary, electronic installations

b) Burglary Insurance Policy of Bank's property and Dead stock

c) Insurance Policy covering loss on account of Fire, Earthquake and natural disaster of the assets financed by the Bank

d) Cash-in-Transit Insurance Policy to cover losses while carrying cash from one branch to another Branch/ office / ATM

18 Which is the type of gun which is normally supplied to the Branch?

a) 10 bore Single Barrel Gun

b) 12 bore double barrel gun

c) 12 bore single barrel gun

d) 14 bore double barrel gun

19 At what intervals should the Branch Manager inspect the Gun?

a) Weekly

b) Fortnightly

c) Monthly

d) Quarterly

20 How many cartridges have to be kept with the Armed Guard while on duty?

a) 7 b) 8

c) 9 d) 10

222

21 What is the frequency of medical fitness checkup for guards?

a) Once in a year

b) Once in two years

c) Once in 3 years


22 Currency Chest/ Repository branches fall under which of the following risk categories?

a) Low Risk

b) No Risk

c) Medium Risk

d) High Risk

23 CCTV footage should contain recording of atleast how many days?

a) 60 days

b) 75 days

c) 90 days

d) 120 days

24 Gun License is issued in whose name?

a) Bank

b) Branch Manager of the branch By Designation

c) Guard

d) Branch

25 Retainer License is issued in whose name?

a) Branch Manager b) Security Officer at LHO

c) Bank d) Armed Guard

26 Which is not Business Communication in the organization?

a) Upward b) Downward

c) Lateral d) Unilateral

27 Fire insurance policies of the branch should be entered in in which of the registers?

a) Insurance Register b) Misc Security Register

c) Security Register

d) Branch Document Register

28 The entrance(s) to the branch premises should be provided with which of the following combination of gates?

a) Only collapsible gates

b) Collapsible gate not required

c) Collapsible gates in addition to the existing doors / shutters

d) Collapsible gates only in sensitive areas

223

29 Business Continuity Plan for a newly opened branch/Office/CPC is to be drawn and approved within how many days / months

a) 7 days

b) 15 days

c) 30 days

d) 3 months

30 What is the periodicity of balancing and reconciliation of Safe custody/security accounts?


c) Half Yearly

d) Yearly

31 Where are the Life Insurance Policies accepted as security recorded?

a) Branch Document Register

b) Miscellaneous Security Register

c) Safe Custody Register

d) Sundry Register

32 When should the duplicate keys withdrawn for verification be deposited?

a) Next day

b) Within 3 days

c) Same Day

d) Immediately after inspection is over

33 What is the time duration for Vouchers to be moved to record room after entering them in Record Register.

a) T+0 b) T+1

c) T+2

d) Within 7 days

34 What is the validity of Strong room fitness certificate obtained from Govt. Engineer / Bank empaneled Engineer?


c) 24 months

d) 12 months

35 With whom will be the security forms held during the day after taking out of the strong room for use at the branch?

a) single custody of the concerned official

b) Joint custodian

c) Branch Head

d) Cash Officer

36 What is the least duration that the banks should maintain the records from the date of transaction between bank and client as per PML Amendment Act 2012


224

c) 10 years d) Permanently

37 What is the full form of GST?

a) Goods and Sales Tax b) Gross Service Tax

c) Gross Sales Tax d) Goods and Service Tax

38 What is the full form of IBTS

a) Intra Branch Transfer Solution b) Inter Branch Transfer System

c) Inter Branch Transfer Solution

d) Intra Branch Transfer System

39 What is the purpose of introduction of IBTS?

a) To ensure control on inter branch transaction

b) To ensure faster transaction of SC/DDP

c) To Replace Branch Clearing General Account(BCGA).

d) All of the above

40 How many times an IOI can be revalidated?

a) Once only b) Twice

c) Any number of times d) Not allowed

41 Which of the date formats on the Instrument can be accepted by banks for payment, if otherwise in order

a) Gregorian calendar b) Saka Samvat calendar

c) Either (A) or (B) d) None of these

42 In addition to mandatory security features, which other additional security features in the CTS-2010 Cheque standard have been adopted by SBI?

a) Bank's logo & name (watermark) b) Fugitive ink

c) Secondary fluorescent ink

d) All of these

43 Fraud Cases of below Rs.3.00 crore are to be referred to which agency?

a) Local Police/State Police b) ACB

c) CBI d) Controlling Office

44 Where can the pensioner submit annual Life certificate either in person or through his/ her authorized representative

a) Home Branch b) None Home Branch

c) CPPC d) Either at Home Branch or at Non-

225

home Branch

45 What is the minimum number of cheque leaves that have to be provided to all Cash Credit and Current Account customers?

a) 10 b) 20

c) 25

d) 50

46 What is the range of penalty for non submission of TDS statements

a) Rs. 10,000/- to Rs. 1,00,000/- b) Rs. 1,000/- to Rs. 25,000/-

c) Rs. 1,000/- to Rs. 10,000/-

d) Rs. 10,000/- to Rs. 25,000/-

47 Which of the following is the new TAN mapping number in case of Vendor Payment System

a) MUMS86152D b) MUMS86154F

c) MUMS86151C

d) MUMS86153E

48 What is the full form of UCIC

a) Unique Customer Identification Code

b) Unique Customer Information Code

c) Uniform Customer Information Code

d) Uniform Customer Identification Code

49 Which software acts as a platform for Asset Liability Management?

a) CS Exim Bills b) Finance One

c) Oracle Financial Services Application Suite (OFSA)

d) B@ncs 24

50 How are the Matured deposits but not paid treated as?

a) Demand Liability b) Time Liability

c) Contingent Liability

d) No Liability

226

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS a c d a d a b a a d

Q 11 12 13 14 15 16 17 18 19 20

ANS d b d b b d c b a d

Q 21 22 23 24 25 26 27 28 29 30

ANS b d c b d d d c b c

Q 31 32 33 34 35 36 37 38 39 40

ANS b c c d a b d b d d

Q 41 42 43 44 45 46 47 48 49 50

ANS c d a d c a d a c a

227

CASH DEPARTMENT PROCEDURES

1 The amount withdrawn/deposited in chest is entered in Vault Register. This Register is always held in the custody of

a) Single custody of cash officer b) Single custody of Accountant in his FBR safe

c) joint custody of Cash Officer and Accountant and kept inside the strong room

d) Single custody of Branch Manager

2 The minimum transaction in Currency Chest is

a) No minimum stipulations

b) Rs 10,000/- & in multiples of Rs 5,000/- thereafter

c) Rs 1,00,000/- & in multiples of Rs 50,000/- thereafter

d) Rs 10,00,000/- & in multiples of Rs 500,000/- thereafter

3 ICCOMS stands for

a) Internal Computerised Currency Operations and Management System

b) Integrated Computerised Currency Operations and Management System

c) Integrated Computerised Cash Operations and Management System

d) Internal Computerised Cash Operations and Management System

4 Who will be responsible for the examination and the correctness of the rupee coins deposited into or withdrawn from the currency chests

a) Cash Officer and the Joint Custodian

b) Cash Officer only

c) Branch Manager only


5 All deposits and withdrawals from the small coin depot should be made in multiple of

a) Rs.5 subject to a minimum of Rs.10

b) Rs.50 subject to a minimum of Rs.100

c) Rs.500 subject to a minimum of Rs.1000

d) Rs.0.50 subject to a minimum of Rs.1

6 All expenses up to Rs.__________ will be met in cash through Petty Cash

a) Rs.200

b) Rs.300

c) Rs.400

d) Rs.500

228

7 Operations in the petty cash will be sole responsibility of

a) Service Manager

b) Cash Officer

c) SWO

d) Branch Manager

8 The Counterfeit Notes can be impounded by

a) All Public Sector Banks

b) Issue Offices of Reserve Bank of India only

c) All Treasuries and Sub-Treasuries d) All Banks, Treasuries, Sub -Treasuries and Issue Ofiices of RBI

9 For cases of detection of counterfeit notes more than 4 pieces, in a single

transaction, branch has to act as under

a) The counterfeit notes should be returned to the tenderer

b) the counterfeit notes should be destroyed by the branches

c) Report should be sent by the Branch Manager to the Police Authorities, along with the suspect counterfeit notes

d) Report should be immediately sent by the Branch Manager to the Police Authorities, along with the suspect counterfeit notes with request to lodge an FIR. The details to be entered in CCR Portal

10 The details of all un-current coin. i.e. defaced, light-weight and defective coins

and other coins withdrawn from circulation, which are included in the Bank Cash

Balance will be entered in the ……………………………. under the various

categories.

a) Vault register b) Small coin Vault register

c) Cash officer jotting book d) Un-current Coins Register

11 ……………………………. will personally verify and confirm that each complete

note bundle being turned into the vault contains 10 packets of notes of the same

denomination

a) Cash Officer b) Joint Custodian

c) Authorised Officer of bank d) Authorised officer of RBI

12 Which of the following to be kept in the strong room in the joint custody of the

Cash Officer and an authorized Supervising Official who will be an official not

below the rank of an Accountant

229

a) Cash b) Small coin depot balances

c) Currency Chest d) All the above

13 For the safety of the treasure stored in the currency chest / repository, it is

essential that the concerned strong rooms are guarded round-the-clock by:

a) Armed guards, who may be Bank's

own guards or police guards

b) Only Banks own guards

c) Police cannot be allowed d) Round the clock guard is not

required

14 The notes and rupee coins in the currency chest, and the small coins in the small

coin depot must be kept-------and from those in the Branch Cash balance

a) Together in joint custody b) Distinct from each other

c) Neither a nor b d) Both are correct

15 At the time of take over, if the branch is a currency chest, count all the packets of

Rs.2000/-, 500/- & -----% of the rest of the cash with clip system.

a) 10 b) 20

c) 90 d) 100

16 As per the latest instructions Cash tendered on the Counter will so as to ensure

the genuineness of Currency Notes and to detect note suspected to be

Counterfeit Notes

a) Necessarily be processed on Note

Verification Machine

b) Manually thoroughly verified

c) Verified by the Cash Officer

additionally

d) None of these

17 In a soiled note remittance to RBI if more than ____% of notes is found to be

issuable notes, then entire remittance will be returned by RBI at remitting bank's

cost?

a) 10 b) 5


18 Charges towards police escorts, transport etc. for chest to chest remittances of

treasure is?

a) Borne by Bank b) Paid by RBI

230

c) Paid initially by Bank, then

reimbursed by RBI

d) None of these

19 In respect of soiled notes bundles prepared for remittance to RBI, who is/are

responsible for Quality & Quantity of notes in the bundle ?

a) Person preparing the bundle b) Cash-in-charge

c) Accountant d) Joint Custodian

20 The number of transactions allowed in a Currency Chest per day is

a) Any number of withdrawals and

deposits

b) One withdrawal in the morning and

one deposit in the evening

c) One withdrawal and unlimited

deposits in a day

d) Unlimited withdrawals and one

deposit in a day

21 For cases of detection of counterfeit notes up to 4 pieces, in a single transaction,

branch has to act as under:-

a) The counterfeit notes should be

returned to the tenderer.

b) the counterfeit notes should be

destroyed by the branches

c) Report should be sent by the

Branch Manager to the Nodal

Branch/ Nodal Police Station,

along with the suspect counterfeit

notes

d) None of them

22 When a banknote tendered at the counter of a branch is found to be counterfeit,

whether an acknowledgement receipt is to be issued to the tenderer.

a) Yes, invariably b) No

c) Branch should avoid issuing it d) Can be issued, If demanded by the

tenderer

23 For reporting and monitoring counterfeit notes, who will act as Nodal Bank Officer

for all the districts falling under the jurisdiction of the RBO?

a) Chief Manager (Compliance &

Risk)

b) Manager Cross Selling

c) CM ( Rural) d) CM (CS&CM)

24 Forged Note Vigilance Cell has been constituted at all ……………….

231

a) RBO b) LHO

c) Corporate centre d) ZO

25 Counterfeit Notes, which are the subject matter of litigation in the court of law

should be preserved by the branch concerned for………years after conclusion of

the court case.

a) 1 b) 2

c) 3 d) 4

26 Two piece note pasted together wherein both the pieces presented belong to the

same note comes under definition of

a) Soiled notes b) Mutilated notes

c) Counterfeit notes d) None of theses

27 The physical transfer of cash between any two employees will be made only after

a) making appropriate entries in the

Cash Receipt / Delivery- Books

maintained by the concerned

employees

b) Verification of cash

c) Entry in CBS d) Ensuring availability of messenger

28 Counterfeit notes detected and impounded must be entered on the same day in

a) Counterfeit Currency

Reporting(CCR) portal

b) Counterfeit Notes Detected

Register

c) Should be the part of Hand

Balance


29 As per Rule for exchange of mutilated notes (For Rs 50, Rs 100, Rs. 200, Rs 500

& Rs 2000 notes) for portion equal to 75% of the note,…………….value to be

paid

a) Full b) Half

c) Nil d) None of these.

30 The deposit and withdrawal of Cash Box in/from Vault under IBCH will be entered

in?

a) Cash Receipt / Delivery Register b) Cash officer's jotting book

232

c) Cash box receipt / Delivery

Register

d) None of these

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS c c b a b a b d d d

Q 11 12 13 14 15 16 17 18 19 20

ANS b d b b a a b c a a

Q 21 22 23 24 25 26 27 28 29 30

ANS c a a b c a a a b c

233

CHEQUE COLLECTION / COMPENSATION POLICY

1 Which policy in regard to Cheque Collection was introduced by our Bank during 2005 and modified in 2017?

a) Cheque Collection Policy 2017 b) Cheque Collection Policy 2005

c) Collection of Cheques policy 2017 d) Collection of Cheque Policy 2005

2 On which guidelines Our Banks Cheque Policy 2017 is framed?

a) RBI

b) IBA

c) BCSBI

d) All of the Above

3 On which platform our Cheque are printed as per Cheque Collection Policy 2017

a) CTS- 2010 Standard b) CTS-2012 Standard

c) CTS-2017 Standard d) CTS-2015 Standard

4 In which are the places CTS is working at present?

a) Delhi

b) Chennai

c) Mumbai

d) All of the Above.

5 What is full form of URRBCH?

a) Uniform Regulations and Rules for Bankers’ Clearing Houses

b) Uniform Rules and Regulations for Bankers’ Clearing Houses

c) Universal Regulations and Rules for Bankers’ Clearing Houses

d) Union Regulations and Rules for Bankers’ Clearing Houses

6 What is the aggregate limit for Negotiation of outstation cheques/instruments drawn on other banks (immediate Credit)?

a) Rs. 30000 b) Rs. 10000

c) Rs. 20000 d) Rs. 50000

7 Which are the accounts are eligible for facility under immediate Credit of outstation Cheques?

a) Opened at least six months earlier to the date of depositing cheque for realization and fully complies with KYC documentation requirements.

b) Where no adverse features attached to the account/account holders have been brought to the notice of the Bank.

c) Account is not inoperative.

d) All of the above.

8 What is the time frame for Collection of Cheques drawn on branches of other Banks located at State Capitals/Major “A” class Cities/other locations?

a) After 7/10/14 days respectively. b) Within 7/10/14 days respectively.

c) Within 4/07/14 days respectively. d) Within 1014/20 days respectively.

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9 What is the rate of interest to be paid to customers for delayed collection upto 90 days in case of proceeds to be credited to Savings Bank account?

a) Savings Bank rate for the period of delay after the time frame.

b) 12% for the period of delay after the time frame.

c) No interest will be paid d) Only nominal amount will be paid.

10 What is the rate of interest to be paid to customers for delayed collection upto 90 days in case of proceeds to be credited to Overdraft/Loan account?

a) S.B rate of interest for the period of delay.

b) Rate applicable to OD/ Loan account for the period of delay.

c) Clean OD rate

d) No interest will be paid.

11 What is the rate of interest to be paid to customers for delayed collection for 90 days and above in case of proceeds to be credited to Savings Bank account?

a) 2% above the corresponding SB rate

b) 1% above the corresponding Term Deposit rate

c) 2% above the corresponding Term Deposit rate

d) 3% above the corresponding Term Deposit rate

12 What is the rate of interest to be paid to customers for delayed collection for 90 days in case of proceeds to be credited to Overdraft/Loan account?

a) 2% above the rate applicable to the loan account.

b) 1% above the rate applicable to the loan account.

c) 1.5% above the rate applicable to the loan account.

d) 0.5% above the rate applicable to the loan account.

13 What is the minimum amount to be paid for delayed period interest?

a) Rs. 10

b) Rs. 25

c) Rs. 50

d) Rs. 100

14 What are the aspects covered in case of Foreign Currency Cheques in Cheque Collection policy 2017?

a) Type of settlement process in foreign countries for collection of cheques.

b) Time–frame for collection of cheques.

c) Arrangement for collection of cheques/instruments.


15 What is the cooling period for USD denominated cheques and payable in USA, received for collection from customers?

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a) 15 days

b) 21 days

c) Nil cooling period d) 18 days

16 What is the cooling period for USD denominated Travellers Cheques, Money Order and Gift Cheque payable in USA, received for collection from customers?

a) Nil cooling period

b) 18 days

c) 21 days

d) 15 days

17 What is the cooling period for EUR denominated Cheques, payable in European Union, received for collection from customers?

a) 21 days

b) Nil cooling period

c) 18 days

d) 15 days

18 What is the cooling period for GBP denominated Cheques, payable in United Kingdom, received for collection from customers?

a) 21 days

b) Nil cooling period

c) 18 days

d) 15 days

19 What is the cooling period for CAD denominated Cheques upto CAD 10000/-, payable in Canada Kingdom, received for collection from customers?

a) Nil cooling period

b) 18 days

c) 21 days

d) 15 days

20 What is the cooling period for cheques denominated other than USD, EUR, CAD; GBP, received for collection from customers?

a) 15 days

b) 21 days

c) Nil cooling period d) 18 days

21 What is the rate of interest for cheques returned unpaid, where the immediate credit facility is extended and credited the proceeds to SB account?

a) Clean overdraft rate for the period Bank remained out of funds plus cheque return charges.

b) Clean overdraft rate for the period Bank remained out of funds without cheque return charges.

c) 2 percent above Savings Bank rate with cheque return charges.

d) 2 percent above Overdraft rate with cheque return charges.

22 What is the rate of interest for cheques returned unpaid, where the immediate credit facility is extended and credited the proceeds to OD or Loan account?

a) 2 percent above Overdraft rate b) Applicable rate on loan Account or

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with cheque return charges. clean overdraft rate, whichever is higher plus Cheque return Charges.

c) 2 percent above Savings Bank rate with cheque return charges.

d) 2 percent above Savings Bank rate without cheque return charges.

23 What is the objective of the State Bank of India Compensation Policy?

a) To establish a system whereby the Bank compensates the customer for the loss.

b) Inconvenience due to deficiency in service on the part of the Bank.

c) Any act of omission or Commission, directly attributable to the Bank.


24 What is the principle of the State Bank of India Compensation Policy?

a) Transparency and fairness in the treatment of customers.

b) Inconvenience due to deficiency in service on the part of the Bank

c) To establish a system whereby the Bank compensates the customer for the loss.

d) Any act of omission or Commission, directly attributable to the Bank.

25 Which Banking Services are covered under State Bank of India Compensation Policy?

a) Unauthorized/ erroneous debit

b) Non-execution/delayed execution of debit/credit of NEFT/NECS /ECS/ NACH transactions

c) Issuance of ATM/Debit Cards without written consent of customers and Non-blocking of lost ATM card after acknowledgement of request for its blocking.


26 What are the Compensation policy states when the Bank has raised an unauthorized/ erroneous debit to an account?

a) The entry shall be reversed with value dated credit to deposit/ overdraft/loan account immediately on being detected/ informed, after due verification.

b) The entry shall be reversed with value dated credit to deposit/ overdraft/loan account immediately on being detected/informed, before due verification.

c) The entry shall be reversed with value dated credit to deposit/ overdraft/loan account immediately

d) The entry shall be reversed with value dated credit to deposit/ overdraft/loan account immediately

237

on being detected/ informed, without verification.

on being detected/ informed, after RFIA Inspecting official confirms.

27 Within how many days, as per the Compensation policy, the unauthorized/ erroneous debit to an account to be reversed where third party or Overseas Centre is NOT involved?

a) Within a maximum period of 7 working days from the date of reporting of erroneous debit.

b) Within a maximum period of 3 working days from the date of reporting of erroneous debit.

c) Within a maximum period of 10 working days from the date of reporting of erroneous debit.

d) Same day on the date of reporting of erroneous debit.

28 Within how many days, as per the Compensation policy, the unauthorized/ erroneous debit to an account to be reversed where third party or Overseas Centre is involved?

a) Within a maximum period of One month from the date of reporting of unauthorized/erroneous debit.

b) Within a maximum period of 3 working days from the date of reporting of erroneous debit.

c) Within a maximum period of 10 working days from the date of reporting of erroneous debit.

d) Same day on the date of reporting of erroneous debit.

29 What is the compensation prescribed, if a fraud, in the account of a customer, has been committed by a member of staff?

a) Bank will restore the amount and also pay compensation @ 1% above the applicable interest rate in respect of deposit/ overdraft/ loan account, for the period, on the amount involved.

b) Bank will restore the amount without any compensation.

c) Bank will restore the amount and also pay compensation @ 0.5% above the applicable interest rate in respect of deposit/ overdraft/ loan account, for the period, on the amount involved.

d) Bank will restore the amount and also pay compensation @ 2% above the applicable interest rate in respect of deposit/ overdraft/ loan account, for the period, on the amount involved.

30 As per Compensation Policy, What is the compensation will be paid by Bank to Customer towards non compliance/delayed compliance in respect of ECS direct debits/other debits to accounts?

a) The customer will be compensated to the extent of any financial loss

b) Interest applicable to Savings Bank rate, with minimum of Rs. 100/-,

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the customer would incur.

and maximum of Rs. 1,000/-.

c) None of the Above d) Both A and B above.

31 As per Compensation Policy, What is the compensation will be paid by Bank to Customer towards non compliance/delayed compliance in respect of NECS/ECS credit?

a) Penal interest at the current RBI Repo Rate plus two per cent from the due date of credit till the date of actual Credit by Destination Bank.

b) Penal interest shall be credited to the beneficiary's account even if no claim is lodged.

c) Both A and B above.

d) None of the Above.

32 Which Bank has to pay the Penal interest in case of non compliance/Delayed compliance in respect of NECS/ECS Credit?

a) Destination Bank b) Remitting Bank

c) Payment Bank

d) NPCI

33 As per Compensation Policy, What is the compensation will be paid by Bank to Customer towards non compliance/delayed compliance in respect of crediting to the beneficiary customer’s account or in returning the non-credited amount to the remitter of NEFT?

a) Penal interest at the current RBI Liquidity Adjusted Facility Repo Rate plus two percent for the period of delay/ till the date of refund

b) 2% above SB rate.

c) At Repo rate

d) Overdraft Rate of interest.

34 As per Compensation Policy, What is the compensation will be paid by Bank to Customer towards Issue of ATM/Debit Cards without written consent of customers?

a) The ATM/Debit card will be taken back by the Bank and cancelled

b) The Bank will reverse the charges, if levied.

c) Pay compensation to the customer @Rs100/-.


35 As per Compensation Policy, What is the compensation will be paid by Bank to Customer towards Payment of Cheque after acknowledgement of Stop Payment Instructions/ Non-blocking of lost ATM card after acknowledgement of request for its blocking?

a) Bank will reverse the debit on account of stopped cheque/ blocked ATM card with value dated credit within two working

b) Compensate the customer with Rs.100/-.

239

days of the customer intimating the transaction to the Bank.

c) Both A and B above d) None of the Above.

36 Why Bank has introduced Limiting Liability of Customers in Unauthorised Electronic banking transactions?

a) Designed to make customer feel safe about carrying out electronic banking transactions.

b) Bank to take immediate steps to prevent further unauthorized transactions in the account.

c) Both A and B above d) None of the Above.

37 What is the website address to lodge the complaints by customers towards unauthorized electronic transactions?

a) https://www.bank.sbi b) https://sbi.co.in.

c) https://www.statebanktimes.co.in. d) Only A and B.

38 Which of the events customer’s entitlement to zero liability shall arise where the unauthorized transaction occurs?

a) Contributory fraud/ negligence/ deficiency on the part of the Bank.

b) Third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system

c) Customer notifies the Bank within three working days of receiving the communication from the Bank by SMS alert, email or letter.


39 Which are the events Limited Liability of a Customer shall arise as per Banks Compensation Policy?

a) In cases where the loss is due to negligence by a customer, such as where he has shared the payment credentials.

b) Customer in notifying the Bank of unauthorized Electronic transaction, the per transaction liability of the Customer shall be limited to the transaction value or the amount of compensation mentioned in policy.

c) Both A and B d) None of the Above.

40 What are the deciding factors, as per Our Banks compensation Policy, with regards to delay beyond the date when the Forex amount is due for credit, compensation is payable for adverse movement of exchange rate?

a) In case the rate ruling on the date of payment is better for the customer compared to the rate that was ruling on the day the amount was due for credit, no compensation needs to be paid.

b) In case the rate ruling on the date of payment is adverse for the customer compared to the rate that was ruling on the day the amount was due for credit, compensation shall be determined as 50 % of the difference between the two rates.

c) Both A and B

d) None of the above.

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ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS A D A D A A D B A B

Q 11 12 13 14 15 16 17 18 19 20

ANS C A B D A D D A C B

Q 21 22 23 24 25 26 27 28 29 30

ANS A B D A D A A A A D

Q 31 32 33 34 35 36 37 38 39 40

ANS C A A D C C D D C C

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SAFE DEPOSIT LOCKERS

1. Safe Deposit Lockers can be allotted

a Blind/Visually impaired b Illiterate

c NRI d All the above

2. Safe Deposit Locker should be allotted on

a First Cum First Serve Basis b Value of Connection

c Period of Connection d BM Recommendation

3 Fixed Deposit should be insisted to the value of ________for allotment of Safe Deposit Locker

a Rs 5 Lakhs b Rs 10 Lakhs

c Rs 25 Lakhs d cover locker rent for 3 years and charges for breaking open of lockers

4 Access to Lockers should be by verifying

a Signatures b Photos in case of illiterates

c A or B d Key of Safe Deposit Lockers

5 Power of Attorney Holders in Safe Deposit Holders can

a Only Operate b Can Surrender

c A and B d None of the above

6 In Safe Deposit Locker Relationship between Banker and Hirer

a Licensor and Licensee b Bailor and Bailee

c Bailee and Bailor d Principal and Agent

7 Search Warrant can be issued by Income Tax Dept for Safe Deposit Lockers under

a Sec 132 of IT Act b Sec 138 of IT Act

c Sec 139 of IT Act d Sec 140 of IT Act

8 Whether Bank is responsible for the contents kept in the Safe Deposit Locker

a Yes b No

c Yes if declared d None of the above

9 Allotment of Safe Deposit Locker should be done after

a Obtaining KYC Documents b Risk Categorisation

c Both a and b d Either a or b

10 COS Form for Safe Deposit Locker Agreement

a COS 404 b COS 103

c COS 405 d COS 406

11 Locker Operations permitted Free of Charges in a Financial Year

a 6 b 12

c 18 d 24

12 If Safe Deposit Locker allotted to Mr A and Mr B with Joint Operations how many nominations can be permitted

a 1 b 3

c Nominations not permitted d 2

13 If the Safe Deposit Locker is not operated for ___ period Bank has the right to cancel the allotment of the Locker and Break Open the Locker

a More than 1 year b More than 2 years

c More than 3 years d None of the above

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14 Break Opening Charges for Safe Deposit Lockers has to be borne by

a By Customer b By Bank

c By Customer and Bank in 50% ratio

d None of the above

15 The Locks of Surrendered Safe Deposit Lockers should be interchanged before allotting to New Customer

a True b False

c Not Mandatory d None of the above

16 The Safe Deposit Locker Room should be constructed as per

a Class A Specifications b Class B Specifications

c No Specifications d None of the above

17 When there is no Nomination for Safe Deposit Lockers Access may be allowed by

a Sucession Certificate b Probate

c Letter of Administration d Any of the above

18 Overdue Charges is recovered at ___percent if due for more than 1 year

a 50% b 10%

c 25% d 40%

19 Safe Deposit Locker Rent is recovered every year on

a 2nd of April b 30th April

c 1st of May d 30th June

20 Valuables inadvertently left by hirer(s) outside the Safe Deposit Lockers should be kept as

a Safe Deposit Articles b Safe Custody

c Custody of BM d Custody of Cash officer

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS D A D C A A A B C A

Q 11 12 13 14 15 16 17 18 19 20

ANS B D A A A B D A A A

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CBS , COMPUTER SECURITY &COMPUTER AWARENESS

1 Bank Disaster recovery centre is located at

a) Hyderabad b)

Delhi

c) Mumbai d) Chennai

2 HTTP stands for

a) Hyper text Transfer protocol b) High Text Transfer protocol

c) Hyper Test Transfer protocol D High Test Transfer protocol 3

Roopantar is a modified version of

a) Mobile banking application b) CBS application

c) Internet banking application d) Core banking solutions

4

What is the name of the software used for online forex rates

a) CBS Roopantar B Mercury FX c) SFMS D Exim Bills

5

What is Metagrid?

a) It is a computer security grid

b) It is related to service charges for forex related services

c) It is a CBS server maintained New

Delhi as a back-up

d) Metagrid is web based software application for Metal Gold Loan

6

(ADS) Active Directory Services developed by –

a) Infosys

b) GITC Belapur

c) Microsoft d) TCS

7 As per our Banks IS Security Policy, which of the following is treated as Security

violation?

a) Connections modems to computers without approval

B Introducing Virus

c) Bypassing Access control Mechanism

D All of the above

8 Expand TLC

a) Tech Leading center

B Tech Learning Centre

c) Tech Lending Center

D Tech Learning Cell

9 RAM stands for

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a) Random Access memory B Random available memory c) Readable access memory D Readable available memory

10 Failure of Bank‘s computer system as per Basel II norms is attributable to which type of risk

a) A. System Risk B. Computer Risk c) C. Operational Risk D. Technology Risk

11 Anti virus used in our bank is

a) Symantec B Mcafee c) Foxpro D Trend Micro

12

What is home page ?

a) First page of the book B First page of the website c) Last page of the website D None of these

13

13. C-Edge Technologies is a joint venture between SBI and __-

a) TCS B INFOSYS c) COGNIZANT TECHNOLOGY

SOLUTIONS

D WIPROA

14

14. What is the software used at Digital Banking branches to gather and monitor customer business leads

a) LMS B CRM

c) ) LOS D CMS

15 15. CDC generates a set of reports for each Branch and these are transmitted

through ___________ to the LHO reports server

a) HTTP

b) HTTPS

c) FTP


16 16. Reports that can be generated by Branches using the Core Banking Menu

Options.

a) Front-end Reports

b) Exception Reports

c) Transaction Reports d) Audit Ad hoc Reports

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17 17. The Branch Server which is identified by an IP Address like ftp://A.B.C.D

where A is __________ .

a) LAN b) Network

c) SERVER d) CAP

18 18. While initiating request for reports through CBS, is there any field for setting

priority

a) At EOD

b) No such Priority

c) Immediately Required

d) None of these

19 19. Cash report is used by SWO for balancing of __________

a) Cash

b) System Suspense Accounts

c) Currency Chest

d) Small Coin Depot

20 glcntr report is used for reconciliation of ____________ .

a) System Suspense Account

b) Cash

c) ATM

d) Forex General Account

21 21. ____________report is used for reconciliation of Glif (cash) entries .

a) System Suspense Accounts

b) IBTS

c) Glcomp

d) ATM

22 22. Every day after EOD, ____________ generates a set of reports for each

Branch and these are transmitted through ftp.

a) CDC

b) BRANCH

c) LHO

d) None of these

23 23. Branch Server is identified by an IP Address like ftp://A.B.C.D where C stands

for

a) LAN

b) Network

246

c) SERVER d) CAP

24 24. . Govt. of India’s Digital India Initiative to create a centre to secure cyber

space to protect the end users from preventing system infections is

a) Swachch Bharat Kendra b) Sinchai Yojna c) Cyber Swachchta Kendra d) None of the above

25 A network of private computers infected with malicious software and

controlled as a group without owners’ knowledge is known as

a) VIRUS b) Intrusion

c) Hacking d) Botnet 26 Binary Number format for 8 is

a) 1000

b) 100

c) 10000

d) 10

27 _____________ is a computer connected to the Internet that has been

compromised by a hacker, virus, etc and can be used to perform malicious tasks from remote direction

a) Trojan b) Malware

c) Zombie d) Spam 28 Unauthorised intrusion by outsiders into a computer or Network is

a) Phishing

b) Spam

c) Vishing

d) Hacking

29 People without internet access and people with internet access, what do we

call the divide

a) Demographic Divide

b) Digital Divide

c) Netizen Divide

d) None of these

30 Spelling can be checked by pressing ____________key in MS Word

a) F2

b) F7

c) F8

d) F10

31 How can a company give its internal website access to outsiders?

a) Through Intranet

b) Through Blog

c) Through Internet

d) None of these

247

33 Full form of VIRUS

a) Virtual Internet Reuter

Uninterrupted System

b) Vital Information Resources Under

Siege c) Virtual Intranet Reuter

Uninterrupted System

d) None of these

34 CGL account starting with 2148 stands for ____________

a) System Suspense Accounts – Debit

Entries

b) Savings Bank Accounts – Per

Segment c) Current Accounts

d) Charges Account

35 CGL 1148 is related to which head_________________

a) Branch Suspense Accounts – Credit

b) System Suspense Accounts – Credit Entries

c) Cash Balance Account

d) CIBA Account

36 _____________ , an office within the Ministry of Electronics and Information which

is the nodal agency to deal with cyber security threats like hacking and phishing

a) IDRBT b) OWASP

c) CERT-In d) None of these

37 CCDP stands for ______________

a) Centralised Credit Data Processing

b) Credit Confirmation Data Processing

c) Credit Centralised Data Processing

d) None of these

38 Score of CIF in CBS for KYC is____________

a) 80

b) 110

c) 200

d) 100

39 What is Spam?

32 Full form of BIAK

a) Built-in Authentication Key

b) Botnet In Authorisation Key

c) Bit In Authentication Key d) Byte in Authentication Key

248

a) Data Interception b) A kind of Cyber Crime

c) Data Theft d) Irrelevant and unsolicited messages

sent/received over internet typically

to a large number of users for the

purpose of phishing / spreading

malware

40 Phisher means________

a) Persons targeting the customers of

the Bank

b) Hacker

c) Social Engineering Crime perpetrator

d) None of these

41 Information Security is all about ensuring CIA which stands for

a) Criticality; Information &

Availability

b) Confidentiality; Integrity &

Availability

c) Confidentiality; Integrity &

Applicability

d) Confidentiality; Innovation &

Availability

42 Safeguarding the accuracy and completeness of information and processing

methods means _________________________

a) Confidentiality

b) Accountability

c) Integrity

d) Availability

43 Information is accessible only to those authorized to have access means

_________________

a) Confidentiality

b) Accountability

c) Integrity

d) Availability

44 Authorized users have access to information and associated assets as per commitment when required refers to___________________

a) Confidentiality

b) Accountability

c) Integrity

d) Availability

45 Maintaining CIA in the true spirit is the responsibility of

a) System Administrator

b) Bank Management

c) Branch Manager d) All of us collectively

249

46 Users’ compromising one / many of CIA –by act of commission or omission would lead to

a) Good Customer Service b) Enhancement of Business

c) Technological or Operational frauds

d) Violation of Business Rules

47 The Bank has put in place Robust and Agile Information Security (IS) framework in line with _________________________________

a) Customer requirements

b) Bank’s Convenience

c) For Staff Benefits

d) Business strategy and emerging

Risks 48 The “IS Policy, IT Policy and related Procedures and Guidelines” is approved

by_____________________

a) Shareholders

b) DMD (IT)

c) CGM (IT)

d) Board of Directors

49 Technology enabled the Bank to provide access to users

on__________________.

a) Need to Have Basis b) “Need to Know” basis

c) “Need to Know” or“Need to Have”

basis

d) “Need to Know” and “Need to

Have” basis

50 Firewalls, Intrusion Detection / Prevention Systems, Web Application Firewalls, Anti-virus, Active Directory Setup, Biometric Authentication System, Internet Proxy Gateway, Patch Management system, Privileged Identity Management,

Anti-Phishing are all__________________

a) Components used in Hardware

b) Various Security Tools /

Technologies deployed by the Bank

c) Network Components

d) None of these

51 SBSOC in the context of IS Security stands for

a) State Bank System Operations Centre

b) State Bank Strategic Operations Centre

c) State Bank Security Operations Centre

d) None of these

52 The SBSOC has been setup for _________________

a)

Avoid System Risks

b) Meet the Competition in IT

250

c)

Data requirements of RBI

d) Real-time Monitoring, Analysis, Correlation and Incident Management

based on the logs generated by IT Assets

53 The SBSOC has capabilities to

a) Monitor users’ activities like Internet usage, virus infection on

PCs / Servers, which programs installed on desktops / servers, wrong login attempts and other

unauthorized activities

b) Monitor the error transactions put through various systems in the

Bank

c) Validate data entry made at CBS front end

d) None of these

54 42. Bank has achieved various Global Accreditation ISO

27001____________________

a)

IT Hardware Procurement

b) Information Security Management Systems (ISMS)

c) Cloud Computing Management

d) None of these

55 Bank has achieved various Global Accreditation ISO 22301 for ___________

a) Business Continuity Management

System (BCMS), Payment Card Industry Data Security Standards (PCI DSS) and SSAE 16 for critical

applications / IT Setup & related operations

b) IT Interface Software

c) IT Hardware Policy

implementation

d) None of these

56 __________________________among operating staff, system administrators,

vendors is key to securely maintain the systems and run operations

a) Review Meetings b) Campaigns

251

c) IS Awareness

d) None of these

57 Which of the following does not require to be brought into Active Directory

a) Desktop b) PC

c) Windows Server d) None of these

58 NVD is the U.S government repository of standards based vulnerability

management data. NVD stands for

a) Notional Vulnerability Database b) National Veracity Database c) National Vulnerability Database d) National Veracity Digitisation

59 _______ is a malware which was targeting Android devices was spreading via

Google’s App store

a) Judy

b) Jelly Bean

c) Octacore

d) Ransomware

60 OWASP is a worldwide not-for-profit charitable organization focused on

improving the security of software. OWASP stands for

a) Online Web Application Security Project

b) Open Web Application Security Project

c) Open Web Availability Security

Project

d) Open Web Application System

Project

61 Users should get their desktops formatted/repaired by designated AMC service

providers under supervision of ______________________

a) State Bank personnel b) Controllers

c) Any staff in the Branch d) Controllers of the AMC personnel

252

62 Password should be __________________________

a) Easy to guess but difficult to

remember

b) Easy to remember but difficult to

guess

c) Bio details of close family

members

d) Easy to remember and Easy to

guess

63 ____________ are dynamically generated and displayed in uneven form, uneven

location by websites

a)

ADS

b) GUI

c)

CAPTCHA

d) None of these

64 Websites use CAPTCHA to protect against

a)

Dictionary Attack

b) VIRUS

c) SPAM d) HACKING

65 Password should be changed at least once in _______days or when you

___________

a) 90 days; suspect it has been

compromised

b) 30 days; suspect it has been

compromised

c) 30 days; suspect it has been compromised

d) None of these

66 If your account is locked out before 3 invalid attempts, it could be

because___________

a)

You have forgotten password

b) someone else was trying to guess the password

c)

Connectivity Problem

d) LAN issue

67 Strong password does not have which of the following features:

a) minimum length of 8 characters

b) at least one numerical (0,1,2,3 ....

9)

c) at least one special character (! @, #, $,%,^,&,*,(,))

d) Should always be encrypted

253

68 In TDS Centralization, How many PAN Nos are mapped to CBS stream

a) One b) Two

c) Three

d) TAN will be mapped based on

each branch/network based on

network in the circle

69 Email sent from Bank provided email ID is as good as letter on_________

a) Bank’s letter head

b) a personalised Email

c) Mail from Corporate Centre

d) None of these

70 Confidential or secret information should be _________________when

transmitted over email

a) Encrypted or password protected b) Sent through SMS and Email

c) Always sent by fully sealed hard

copy letters

d) Personally sent through an Officail

71 _______________is a mechanism by which the sender encrypts the message by

using “Public” key of intended recipient. The recipient applies own “Private” key

to decrypt the message.

a) ADS

b) Digital Signature

c) Ethical Hacking

d) None of these

72 By using Digital Signature,________________ is ensured

a) Acknowledgement of the recipient

b) Bank’s interest alone is protected

c) “Non Repudiation”

d) Hacking cannot be done

73 Emails that are not digitally signed should not be used for

_______________________

a) Critical transactions requiring legal authentication of sender

b) Official Purposes

c) Personal Purpose d) Any purpose

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74 All latest promotions takes place in CBS available at

a) Servicedesk b) Core Banking Department

c) Circle Alternate Channel Dept d) Both A & B

75 ___________________is responsible for the safe custody of State Bank owned

laptops or any other portable device used

a) Users

b) System Administrators

c) Bank

d) The concerned branches

76 Providing email ID to any mailing lists / internet websites / Internet newsgroup /

discussion board might result into receiving emails like marketing, lottery, draws,

phishing etc. called as ______________

a) Hacking

b) Cyber Theft

c) Intrusion

d) A. SPAM

77 Computer Security Day is on_____________

a) 1st Nov b) 15th Nov

c) 30th May d) 30th Nov

78 Which statement is not true about informationsecurity?

a) Computer Security is part of

Management’sjob

b) Report anything Suspicious to your

systemadministrator

c) Do not ignore unusual

computer functioning. It might be a sign of malware.

d) Verify Everything.

Verify who the person is on the phone. Verify that the web is real.

79 What is biggest Vulnerability to computer informationSecurity?

a) End Users

b) Instant Messaging,

c) Peer tp Peer (P2P) application d) Malware-virus, worm,

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spyware,

Spam,Phishingattack17.

80 When the Employee retires, resigns, is suspended and removed from service, the user status shouldbe

a) Inactivate atbranchlevel

b) Report toLHO

c) Nothingtodo

d) Both a & b

81 What step should be taken for ensuring safety of server and networking equipment in the serverroom

a) Access to server room should

berestricted

b) Two Air- Conditioners with timer

should be installed

c) Fire/Smoke detector and alarm should be installed

d) All of the above

82 ISO carries out the ‘Identify’ and ‘Prevent’ functions of NIST framework for Cyber Risks and ensures against any exploitation on Confidentiality, Integrity, and

Availability. ISO stands for

a) Information Security Operations

b) Information System Operations

c) Interoperable Systems Operations d) Internet System Operations

83 Information Security Department (ISD) is headed in our Bank by

a) Board of Directors b) GM & Group CISO

c) DMD (IT) d) CGM of Circle

84 ISD is segregated into ___________number of Departments

a) Five b) Four c) Three d) Seven

85 The Three departments which are functioning under ISD are:

a) ISO, SOC & Cyber Security

b) ITSS, SOC & Cyber Security

c) ISO, ITSS & SOC

d) None of these

86 SOC under ISD is headed by

a) DGM (SOC) b) GM (SOC)

c) AGM (SOC)

d) None of these

87 Cyber Security wing is headed by

a) AGM (CS)

b) GM (CS)

c) DGM (SOC)

d) DGM (CS)

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88 Ethical Hacking and Red Teaming exercises are the responsibility of __________department under ISD

a) Shared Operations Centre b) Cyber Security Department

c) Information Security Department

d) None of these

89 Reducing downtime of critical systems exploited by security exposures by ‘Respond’ and ‘Recovery’ are the primary objectives of

_______________department under ISD

a) Shared Operations Centre (SOC)

b) Cyber Security Department

c) Information Security Department

d) None of these

90 42. Roopantar is a modified version of

a) Eximbills

b) Core Banking Solution

c)

Finance One

d) A. None of these

91 42. In CBS, GLIF stands for

a) General Ledger Interface File b) General Ledger Internet File

c) General Ledger Intranet File d) None of these 92 In CBS, GLCC represents

a) General Ledger Confidential Code b) General Ledger Classification Code c) General Ledger Confidential

Classification

d) None of these

93 IBCH in CBS stands for

a) In-Branch Cash Handling b) Inter Branch Cash Handling

c) Internet Based Cash Handling

d) None of these

94 _______________is the process of converting information or data into a code, especially to prevent unauthorized access

a) Interface b) Decryption c) Encryption d) None of these

95 Process of attempting to acquire sensitive information is called

a) Hacking b) Phishing c) Botnet d) Malware

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96 As per the Acceptable Usage Policy of the Bank, who is primarily responsible for Physical and Logical security of Desktop

a) User to whom the desktop is attached

b) Manager Operations of the concerned branch

c) Branch Manager of the concerned Branch

d) Controller of the concerned branch

97 Under account segment code 0806 refers to

a) A. Per-Dom-Pub

b) A. Per-Dom-Staff

c) A. Per-NRI

d) A. C&I

98 Authorised users can access Bank’s internet for _____________purposes and

restricted____________ purposes

a) Business & Non-Business b) Official & Personal c) Personal & Official d) Non-Business & Business

99 Users should adopt a ___________desk Policy for papers, disks and other documentation

a) Virus-free b) Clean c) Password-locked d) None of these

100 ____________ documents/papers should be destroyed/shredded using secure

measures

a) Obsolete b) Unused

c) Old d) None of these

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ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS D A D B D C D B A C

Q 11 12 13 14 15 16 17 18 19 20

ANS D B A B C A B C A A

Q 21 22 23 24 25 26 27 28 29 30

ANS C A A C D A C D B B

Q 31 32 33 34 35 36 37 38 39 40

ANS C A B A B C A B D A

Q 41 42 43 44 45 46 47 48 49 50

ANS B C A D D C D D D B

Q 51 52 53 54 55 56 57 58 59 60

ANS C D A B A C D C A B

Q 61 62 63 64 65 66 67 68 69 70

ANS A B C A A B D D A A

Q 71 72 73 74 75 76 77 78 79 80

ANS B C A A A D D A A A

Q 81 82 83 84 85 86 87 88 89 90

ANS D A B C A A D B A B

Q 91 92 93 94 95 96 97 98 99 100

ANS A B A C B A C A B A

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SITUATIONAL ANALYSIS

Mr.X has a safe deposit locker facility with the Bank. The locker rental is overdue. One day the locker hirer visits the branch. The official in charge of locker denied access to the hirer and asked him to regularize the rental. The hirer argued that he would pay the rental after 3 months and that the Bank can deny access to him. The customer is having a fixed deposit for Rs.50000 with our branch. Answer the following questions

1 Bank has __ type of lien on contents of locker

a) General Lien b) Particular Lien

c) Absolute Lien d) NO Lien

2 Which of the following statement is true?

a) Branch can exercise particular lien on the contents of the locker, for dues of locker rent only.

b) Branch can exercise general lien on the contents of locker, for overdues in other loan.

c) Branch can exercise particular lien on the contents of the locker, for overdues in other loan.

d) Branch can exercise general lien on the contents of the locker, for dues of locker rent only.

3 Mr. and Mrs.Ashok maintain locker with E or S facility with branch “A”. The BM received a letter from Mr.Ashok requesting not to allow access of the locker to Mrs.Ashok. What should be the course of action for the branch?

a) As the locker is in E or S facility, access cannot be denied.

b) The access should be allowed only to Mr.Ashok

c) Further operations should be allowed jointly

d) The locker hirers should be advised to close the locker.

Mr.A and Mr.B are jointly holding a fixed deposit of Rs.10 lakhs. Both of them

nominated Mr.X as nominee for the fixed deposit. Unfortunately Mr.B is

deceased. What would be the course of action in the following circumstances:

4 Mr.A claimed that as the joint depositor, he is solely eligible for the fixed deposit

and requested for premature close of deposit.

a) Payable to A and legal heirs of Mr.B jointly.

b) Payable to A and the nominee Mr.X

c) Payable to A as the deposit is jointly payable.

d) Payable jointly to A, legal heirs of B and nominee X

Mr. A and Mr.B are holding a fixed deposit of Rs.10 lakhs in E or S facility. Mr.A

is deceased. What would be the course of action in the following circumstances.

5 The legal heirs of of Mr.A approached the branch and laid a claim on the fixed deposit stating that Mr.B joined only for operational convenience but the money actually belongs to their father Mr.A.

a) In case of E or S deposit, the balance is payable to survivor, Mr.B..

b) Jointly payable to Mr.B and to the legal heirs

c) The request of the legal heirs can be considered.

d) The branch can wait for some time for resolution of the dispute.

6 The legal heirs of Mr.A brought a order from the court to make payment of the fixed deposit.

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a) Bank has to abide by the court orders and settle the amount to the legal heirs

b) Bank has to make payment to the survivor without taking into consideration the court order.

c) Bank has to pay the amount jointly to the legal heirs along with the survivor

d) None of these

Mr.Rama Rao, a customer has availed education loan from the Bank by

mortgaging his agricultural land documents. He closed the loan account and

approached the branch to deliver his documents. The branch after a span of 15

days tells him that the documents are misplaced. Even after 2 months, the

customer grievance is not redressed. He approached the Banking ombudsman.

7 Whether the complaint is under the purview of Banking ombudsman?

a) Yes as Banking ombudsman is for resolution of customer complaints and the scheme has been started as per Sec.35A of BR Act

b) Yes as Banking Ombudsman is started as per Sec 35 A of RBI Act

c) No as the complaint is pertaining to non delivery of loan documents and loans are not covered under the scheme.

d) None of these

Mr.A and Mr.B are jointly holding a fixed deposit of Rs.10 lakhs. Both of them nominated Mr.X as nominee for the fixed deposit. Unfortunately both the depositors are deceased in a major accident. What would be the course of action in the following circumstances:

8

a) Mr.X as a nominee would receive the amount.

b) As the deposit is jointly payable, the nominees of both deceased depositors would be eligible to claim the amount.

c) The amount would be jointly payable to the nominee and legal heirs of both the depositors.

d) The Bank would request the parties to approach the court as both the depositors are deceased.

9 You are orally informed of the death of the customer of a SB account and in the meantime a cheque that was issued by the customer some days earlier has been presented across the cash counter for payment. What will be the appropriate action?

a) Pay the cheque as the information is oral

b) Verify the information before paying/returning the cheque

c) Return the cheque with a request to refer to the drawer

d) None of these

10 During RFIA, the inspecting official has commented that cheque books returned undelivered are scattered in the Service Manager counter. What action can be initiated?

261

a) The customer will be contacted over phone and if undelivered within 1 month will be destroyed.

b) The customer will be contacted over phone and if undelivered within 50 days will be destroyed.

c) The customer will be contacted over phone and if undelivered within 2 months will be destroyed.

d) The customer will be contacted over phone and if undelivered within 3 months will be destroyed.

11

A valued customer who is maintaining Fixed deposits to the tune of Rs.1

lakhs and with a balance of Rs.1.50 lakhs in SB account is deceased.

Nomination is not recorded. What is the procedure to be followed.

What are the documents required for settlement of the claim?

a) Stamped Letter of indemnity, Notarised affidavit

b) Surety good for the amount is also insisted

c) Stamped letter of indemnity only d) A & B

12 If one of the legal heirs do not want to join in the settlement process, which document would be obtained?

a) All the legal heirs should join the process

b) Stamped letter of affidavit can be obtained from the person

c) Stamped letter of disclaimer can be obtained

d) A simple letter can be obtained from the person.

13 The family members of the deceased depositor includes – 2 sons, 1 daughter, Father, Mother, Spouse. Who will not be first class legal heir as per the Act?

a) Father b) Father & Mother

c) Daughter d) All will be the first class legal heirs

14 If the total deposits of the deceased customer are Rs.7 lakhs, which additional documents are insisted for settlement of claim?

a) Notarised affidavit b) Surety good for the amount

c) Two sureties good for the amount, Notarised affidavit

d) A & B only

15 Letter of indemnity is obtained on

a) COS 539 b) COS 540

c) COS 49 d) COS 101

16

A customer has given a written complaint to the branch that unauthorized transactions valued at Rs.1,25,000 were committed in his SB account without his intervention. The transactions were done 2 days ago. What is the course of action?

Where the loss is due to a third party breach, what would be the liability of the

Bank?

a) Where the complaint is given to the Bank within 2 days, there is zero liability for the customer.

b) Where the complaint is given to the Bank within 3 days, there is zero liability for the customer.

c) Where the complaint is given to the Bank within 5 days, there is zero liability for the customer.

d) Where the complaint is given to the Bank within 7 days, there is zero liability for the customer.

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17 Where the customer has shared the OTP with the miscreats but complained to the Bank within the time frame,

a) The customer will bear the entire loss until he reports the unauthorised transaction to the Bank.

b) The customer will bear the entire loss though he reports the unauthorised transaction to the Bank.

c) The Bank will bear the loss occuring after the reporting of the unauthorised transaction.

d) A & C

18 When the date of reporting of the incident by the customer is from 4 to seven working days,

a) The customer will bear zero liability

b) The customer will bear limited liability

c) The customer will bear entire liability

d) None of these

19 When the date of reporting of the incident by the customer is after 7 working days,

a) The customer will bear zero liability

b) The customer will bear limited liability

c) The customer will bear the entire liability

d) None of these

20 Under limited liability, the maximum liability of a customer for BSBD accounts is

a) Rs.1000 b) Rs.2000

c) Rs.5000 d) Total amount

21 Under limited liability, the maximum liability of a customer for SB account holders other than BSBD

a) Rs.5000 b) Rs.10000


22 Under limited liability, the maximum liability of a customer for Current account, CC, OD accounts with limits above Rs.25 lakhs is

a) Rs.5000 b) Rs.10000


23 Mr.A has applied for issue of a duplicate IOI. However even after 15 days of application, duplicate IOI was not issued. The customer complained to RBO who instructed the branch to immediately issue duplicate IOI along with compensation. What is the compensation payable?

a) Beyond 7 working days, interest at fixed deposit rate for the corresponding period will be paid.

b) Beyond 10 working days, interest at fixed deposit rate for the corresponding period will be paid.

c) Beyond 14 working days, interest at fixed deposit rate for the corresponding period will be paid.

d) Beyond 7 working days, interest at SB rate for the corresponding period will be paid.

24 Mr.A is maintaining a locker. The locker rental is overdue. What is the course of action?

a) Break open should be completed within 3 months

b) Break open should be completed within 6 months

c) Break open should be completed within 9 months

d) Break open should be completed within 12 months

263

ANSWERS FOR MODEL QUESTION PAPER

Q 1 2 3 4 5 6 7 8 9 10

ANS B A C A A A A A C C

Q 11 12 13 14 15 16 17 18 19 20

ANS C C A D B B C B C C

Q 21 22 23 24 25

ANS B C A A

264

Discriptive Part

265

Rationales

1.Documents are to be filled in completely before execution. Documents are proof of availment of the loan/advance.

If documents are not completely filled-in before execution, the borrower may object the genuinity of the matter filled-in subsequently. He may disagree to repay the loan on the grounds that he was not aware about all the terms and conditions of the

loan. It is not a good practice as the procedure will not be transparent.

2.Loan for Milch animals is disbursed in two phases.

While disbursing a loan amount to purchase milch animals , the second installment is released after 6 months from the date of first disbursement to ensure that at least one animal will give milk during dry period of the other animal for continuous

generation of income for the borrower. The repayment of loan will be regular.

3. Very high Current Ratio is not a good sign. Very high current ratio is an indicator of in-efficient working capital management.

There is a risk of manipulation in quality, quantity, rate of the current assets, which may result in wrong decision. There is a possibility of hoarding of stocks, accumulation of non moving stock, long

unrealised debts etc. 4. Inspection of agricultural advances should be farmer oriented rather

than farm oriented.

To understand their problems, credit requirements and repayment capacity. To ensure better follow up of advance, recovery and revival..

5. Promoting Farmers Clubs is beneficial to the Bank. Farmer’s club formation is based on the principle “Development through credit”. It

enables the farmers to adopt improved practices for their development. Because of their voluntary participation, the change process will be faster. We can as well make use of the Clubs to inculcate proper credit discipline among the

farmers. 6. Staff accounts should be scrutinised thoroughly by the Branch Manager

at regular intervals. With a view to ensure that such accounts are conducted properly and that no

transactions of an unusual nature (involving large amounts disproportionate to known sources of their Income) are being routed through these accounts.

Also to prevent possible frauds.

266

7. Alternate Delivery Channels are the need of the hour.

Several alternate delivery channels such as ATM, Mobile banking, Internet banking, etc. will provide customer satisfaction and convenience.

It will decrease the crowd at the counters and give free time to branch operative staff to sell and market products. It will help to improve market share and quality of business.

It will help our bank to compete effectively with new forces of the market.

8. Payment of a Bank draft cannot be stopped by the purchaser. While issuing the drafts the Bank receives value well in advance.

Hence, the bank cannot go back on its own promise to pay the money, which was received as consideration. Once a draft is issued, the Bank becomes trustee of the funds for the payee. The

payee might have got the title to the draft by providing some consideration. Hence payment of draft cannot be countermanded.

9. Job rotation in the Bank is done periodically. To avoid frauds arising out of the monopoly of the specific employees handling

specific areas. To drive out monotony. Development of the people by providing them with an opportunity to handle different types of jobs on a regular basis.

To obviate the element of indispensability. To ensure that the Bank’s work does not suffer in the absence of anybody.

10. Government Business has to be given a lot of importance.

It contributes to the bottom line directly by means of commission income. No need for any outlay of funds/ capital adequacy. It gives scope for close rapport with

various Govt. Departments. It gives vital business leads 11. Form 60/61 has to be obtained in the absence of a PAN No., for

opening account with an initial deposit of cash.

CBDT have clarified that it is not mandatory to have a PAN / GIR No. to open an account. But, in lieu of that, form 60/61 has to be obtained. Form 61 relates to accountholders whose income is from agriculture and Form 60 is taken from others.

12. Note bundles should be periodically turned over in the strong room.

Ans: To avoid notes getting stuck to each other/deteriorate in quality. To obviate notes getting damaged due to white ants/pests To enable verification at periodical

intervals.

267

13. When a cheque is crossed to two Banks it is not paid.

A crossed cheque is considered to be direction of the drawer to the paying bank, but crossing in favour of two banks is not a clear mandate unless it is stated simultaneously that one Bank is acting on behalf of the other. Sec 127 of NI Act

prohibits payments of such cheques. The paying Bank cannot get protection, if such cheques are paid as mandate is not clear.

14. A currency note is not a promissory note despite fulfillment of most of the features of a promissory note.

Sec 4 of NI Act while defining a promissory note, expressly excludes the bank note and currency notes from the definition of a promissory note, as bank / currency notes are money. Further, bank / currency notes are issued as payable to bearer

whereas a promissory note cannot be issued as per restrictions imposed by Sec 31 of RBI Act. NI Act does not affect the provisions relating to paper currency as contained u/s 21 of Indian Paper Currency Act 1871, which deals with currency /

Bank notes. 15. Banks prefer registered partnership firms for the purpose of giving

loans. Under provisions of Sec 69 of Indian Partnership Act 1932, it is not mandatory that a

firm should get itself registered with Registrar of Firms, which has the effect of a public notice. The registered firm can sue other parties in its name, on the contracts entered into by it with third parties. Such provision is not available for unregistered

firms this may affect the recovery of dues from the firm when the firm is unable to recover the dues from its debtors.

16. A material altered cheque is not paid without the authentication by the drawer.

Material alteration of cheque alerts the mandate of the drawer and Banks can make payment of the cheques drawn by them taking into account the mandate. In case a

cheque with material alteration is paid, it will amount to payment without caring the mandate of the drawer. Such payment cannot be considered as a payment in due course and Bank will be held liable to compensate the drawer in case of loss to him.

17. A cheque signed by an expired partner of a firm is not paid while a cheque signed by an expired director of a company is paid.

A partner in a partnership firm represents the firm as well as himself, being jointly and severally liable for the

dues. With his death, the contract with the Bank comes to an end. On the other hand, a director represents

268

the company and is only an agent. Death of an agent though brings end to agency but not the company.

Hence, relationship between company and bank does not terminate. 18. Liability of an endorser of a Negotiable Instrument is similar to

principal debtor / guarantor. Under Sec 35 of NI Act, an endorser is deemed to have impliedly promised that on

due presentment the instrument will be paid and in case of dishonor, the holder will be compensated if he receives a notice of dishonor. As a result, his liability to pay is

absolute without any pre-conditions. He is the party, who is liable on the instrument jointly as well as severally.

19. A customer is maintaining a current account showing a credit balance of Rs 25,000 with your branch. The bank receives a Garnishee Order from

a local court restricting the operations in all the accounts of the customer. The customer has also hired a locker. He requests that he has to attend a marriage and wants to operate the locker. Will you allow the customer to

operate the locker, or decline his request after receipt of the Garnishee Order?

1) Garnishee orders are applicable on amounts, which the customers keep with the bank as deposits. 2) Literally, Garnishee Order means that orders applicable on 'Debtors'. Bank is a

debtor to its customers in respect of only deposit accounts. 3) Providing Lockers to the customers is a facility given by the bank but it is neither a deposit account, nor the bank is a 'Debtor' for the same.

4) Garnishee Order is applicable only under the Debtor - Creditor relationship. It means money belonging to the customer in the hands of Banker at the time of

receipt of the order. 5) In case of locker, the relationship is of lesser and lessee on which Garnishee Order is not applicable.

6) Bank therefore, will allow the locker holder to operate the locker. 20. Shri Kumar issued a cheque favouring “Yourselves” drawn on his SB

account with your branch for Rs.30,000/- for credit (of this amount) to his PPF a/c. The cheque, which was a bearer and open cheque, was handed over by Shri. Kumar to his servant for delivery to your branch. The cheque

has been paid in cash to the bearer on the grounds “Once a bearer, always a bearer”. Is the Bank liable on account of deficiency of service by payment of the above cheque? Comment.

1) The cheques marked “Yourselves” are generally issued by customers who want a service rendered by the Bank for an equivalent amount, which is an established

practice in the Banking industry. 2) Hence, the Bank should have taken cognisance of the beneficiary (“Yourselves”),

before making payment of the cheque in cash.

269

3) The Bank is, therefore, negligent and deficient in service. Hence, the Bank is liable for making good the loss to the customer.

21. Bouncing of cheques due to insufficient funds treated as cognizable offence.

To enhance acceptability and creditability of cheque as dependable instrument , i.e. means of payment settlement. To enhance reliability of cheque and eliminating

chances of frauds, cheating ad otherwise stopping of cheque on flimsy grounds. The penal clauses act as deterrent because bouncing of cheque for want of sufficient

balance in the relevant account is made a cognizable offence under Indian Penal Code.

22. Why Right To Information Act has been introduced by GOI ? Enacted on May 13, 2005.

Deals with right to information for citizens to secure access to information under the control of public authorities. To promote transparency and accountability in the working of every public

authority. Central/State Information Commission set up to secure compliance with the

provisions of this Act.

Penalty of Rs. 250/ per day with maximum of Rs. 25000/ 23. PAN card of student/parent is mandatory for all Educational Loans.

1. To mitigate the difficulties faced by operating staff in contacting the borrower after completion of studies and rising NPA in Education Loans .

2. To facilitate follow up and track the borrower easily.

24. While opening accounts in the name of Partnership Firms, in addition to other formalities we take Partnership Letter.

1. Through Partnership letter the partners undertake to advise the Bank of any change inthe constitution of the firm

2. The Partnership letter is signed by all the partners confirming that they abide by the terms of opening and mode of operation of the account (Partnership Deed may not have been signed by all the partners)

25. TDRs maturing on Holidays are paid on the succeeding working day but not on the

preceding working day. Bank holidays are declared as per Sec.25 of NI Act with specific reference to

payment of Negotiable Instruments which are paid on the previous working day. TDRs are not NIs but are receipts of monies deposited. Their payments can not be

270

made before maturity date as per Contract lest they should become premature payments.

26. Payment Of Interest On Savings Bank Account On Daily Product Basis.

RBI guidelines. In view of the present satisfactory level of computerization in commercial bank branches, payment of interest on Savings Bank accounts would be made on daily product basis w.e.f. 01.04.2010. Bank customers should be given

additional incentive for parking their surplus funds in SB accounts which banks have come to treat as a source of free float funds.

27. While creating Equitable Mortgage, the mortgager does not sign the Title Deed register, Why?

If the mortgager signs the Title deed register, it will amount to Registered Mortgage and it attracts advalorem Stamp duty.

28. Banks are not liable for Quality/Quantity of goods imported / exported

under documentary letter of credit opened by them, Why? Ans. Under uniform customs and practices for documentary credit, banks deal in

documents and not in goods. 29. Advances to Pardanashin ladies are not encouraged. Why?

There is inherent risk involved regarding identification, as the pardanashin women observe complete seclusion with the people other than family members.

30. Why in rephasement of Term Loans, the concurrence of the Guarantor

is necessary ? As per section 133 of Indian Contract act, any variance by the creditor in original set

of terms and conditions of the advance with the express consent of surety discharges him from all such transactions, subsequent to variance. Hence the consent of Guarantor is required during rephasement of Term Loan .

31. Banks are more secured, in case of Hypothecation advances to Limited

Companies than to Partnership Firms, Why? As per section of section 125 of Indian Companies act, the registration of Bank

charges on assets of Limited companies with Registrar of Companies is required. Whereas no such charge is registered in case of Partnership Firms.

32. Demand drafts of Rs.20,000/- and above are issued invariably with

account payee crossing with immediate effect.

271

To address the regulatory concerns

To obviate the possibility of using demand drafts without any crossing for transfer of money as alternative to settlement through cash by some unscrupulous elements.

33. Controllers must visit branches at stipulated intervals. In order to monitor adherence of bank's laid down systems and procedures To

verify quality of assets maintained at branches / operating units with an end to minimize operational and credit risks the bank is exposed to in day to day business

operations. 34. Bank has decided to subscribe to multiple bureaus for credit

information on prospective borrowers for certain advances.

Given the fact that credit portfolio including the number of borrowers, has been on the rise, with the sharpest spike being in the Retail segment, the necessity for multiple bureau has been felt in various quarters Subscribing to Multiple Bureaus

helps in mitigating Credit risk by not relying on single supplier of Credit information Multiple bureaus will also allow the Indian lending industry, to exploit the significant experience they have in other markets which will lead to better data quality as the

lenders. 35. It has now been decided to withdraw the instruction for obtaining

undated and pre- signed cheques where mandate for repayment of home loan through ECS/S.I. is obtained.

Section 25 of the Payment and Settlement System Act, 2007 provides punishment

for dishonor of electronic funds transfer on account of insufficient funds etc. The provisions of Section 25 of the said Act are similar to Sections 138,139, 140 & 146 of the Negotiable Instrument Act dealing with dishonor of cheques and provide

punishment for the said offence. As such there is no need to obtain undated and pre signed cheques.

36. CERSAI has been introduced by government of India.

For the purpose of registration of all security interest over property, transactions of securitization and asset reconstruction and to enable enforcement of SARFAESI Act provisions in a better and stringent way.

Being centralised Electronic Registry, facilitates in obviating the possibility of multiple finance on / against the same security.

37. Branch should obtain a STDR from new hirers of Safe Deposit Lockers.

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Lockers to be allotted on first come first basis without insisting for deposits. However, To ensure prompt payment of rent, Branch should obtain a STDR from

new hirers that would cover 3 years rent and the charges for break open in case of an eventuality.

38. Relationship Banking is gaining importance now. To build up close rapport and understanding with the customers, Enable us to

anticipate the needs of the customer well in advance and to meet them, To meet the competition from the other players in the market.

39. No interest is to be applied on NPA accounts.

NPA ceases to generate income for the Bank. The principal itself is doubtful of recovery in these cases. In order to avoid tax liabilities on un received income.

In terms of RBI directives on IRAC norms, Income has to be considered based on the record of recovery and not on accrual basis.

40. Data Warehousing and Data Mining are the need of the hour. It seeks to centralize a variety of data and data mining attempts to dig into the data.

Its goal is to find out patterns of customer behavior It helps in designing new products and cross- selling products. CRM heavily draws on these.

41. RBI introduced Special Mention Accounts [SMAs]. To identify the accounts with early warning signals and take proactive measures to

arrest slippages to NPA. It is one of the RBIs directives.

42. Take over norms is made more stringent by the Bank

To address the concerns of Central Vigilance Commissioner and RBI, like i) Problem Accounts get taken over as the transferor bank does not provide true and vital information about the account when called for.

ii) Unscrupulous borrowers often take advantage of the competition amongst banks and the irregularities committed at the transferor bank with respect to sanction,

disbursement and monitoring of account goes unexamined in the process.

43. A prudent Banker should endeavor to obtain Gold, NSCs and KVPs as collaterals, wherever feasible, while processing Advances proposals.

Obtaining Gold, NSCs & KVPs as financial collaterals enables the Bank to reduce the

exposure by the amount of the collateral while calculating capital requirements.

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This helps significant capital savings.

44. An Electronic waste ( e-waste) management policy has been formulated by the Bank.

In order to ensure proper handling of e-waste with a view to protecting the environment, reducing pollution by toxic gases / green house emissions and other non-biodegradable substances caused by e-waste disposal.

Falling in line with instructions of Ministry of Environment and Forests, Government

of India (GOI) 45. Penalty charges are to be recovered from SB/CA holders, if the

account is closed within 1 year but after 14 days from the date of opening the account.

As our bank has accepted the Banking Codes and Standard Board of India (BCSBI), we would have to abide by the clause 8.1 of the BCSBI code which is as under: "If you are not happy about your choice of current /savings account, within 14 days of

making your first payment into the account, we will help you switch to another of our accounts or we will give your money back with any interest it may have earned. We will ignore any notice period and any extra charges".

46. Financing "PRODUCER COMPANIES" is a new thrust area in agricultural Finance.

Our Bank is also showing inclination in financing. Identification of Producer Companies as an emerging area in Agriculture Business Opportunities and to take

advantage of revolution in Agriculture marketing.

47. Credit Scoring Models for Personal Banking Segment advance introduced.

Introduced at the RBI directive based upon BASEL II guidelines. This will price the borrower for a given product based on credit scores. The Scoring Model Serves as a credit decision making tool to strengthen the existing system of appraising loan

applications. Better Turn Around Time (TAT) and improves the asset quality. 48. Credit exposure norms are stipulated by banks.

The concentration credit risk is avoided. Failure of a single advances or advance to a single group will not affect the capital

stability of bank. It will enable availability of credit for all sector of economy. It is a prudential control measure aimed to minimize credit risk for banks.

49. Staff Suggestion Scheme is broadly revamped.

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To expedite disposals of the suggestions, so that the suggestors are rewarded suitably for their keen interest evinced in the progress/ development of the Bank.

To improve the system procedure as well as customer service.

50. Operational Risk is emphasized in Banks. It is as per BASEL-II guidelines. Due to significant growth in banking transactions there is increase in operational risk

i.e. inadequate / failed internal Processes, people, systems etc.

To strengthen the soundness and stability of system and it is an important component of risk management system.

51. No interest applied in the loan account of an employee from the date of his death to closure of loan.

The liabilities of deceased employees to the bank are normally liquidated from the proceeds of terminal benefits payable to the nominee/legal heirs. The settlement of

claims relating to terminal benefits of a deceased employee takes 2/3 months. Interest payable may not be a huge sum.

52. Banks have been advised by RBI that they should not offer any banking product including online remittance schemes with prize / lottery / free trip (India and/or abroad), etc., or any other incentive having an

element of chance. Such products involve non-transparency in the pricing mechanism and are therefore

againstthe spirit of guidelines. Such products, if offered by banks would be considered as violation ofthe extant guidelines and would be liable for penal action.

53. It has been decided to dedicate 1st August of each year as KYC Compliance and Fraud

Prevention Day in the Bank. While efforts are on to provide excellent service the underlying objective is also to

prevent establishing relationship not in consonance with the Bank's Customer Acceptance Policy as also perpetration of frauds so that loss to the customer and/or the Bank is obviated.

While observing the day, various activities and programmes will be undertaken / organized with a view to creating awareness in this regard.

54. Branches should ensure resolution of complaints in respect of wrongful debits in ATM transactions within a maximum period of 7 days

from the date of receipt of customer complaint.

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As per the RBI directive it is mandatory to reimburse the amount within a maximum period of days. Branches have to manually calculate the compensation payable

(Rs.100/- per day from the 8th date) to the customer till the date of actual credit to the customer's account along with the credit of the failed transaction. This has to be done even without any claim from the customer.

55. It has been decided that testing for fugitive ink be made compulsory for payment of cheques

for Rs.25, 000/- and above.

It has been observed that many frauds have been perpetrated through encashment of fake cheques recently. On investigation it transpired that the cheques did not have security feature in built of background printing of the Bank's name and symbol

with fugitive ink, which gets smeared in contact with any liquid containing water. 56. Bank does not insist on stamped indemnity for issuing duplicate Term

Deposit Receipt. Term Deposit Receipt is NOT a negotiable instrument and therefore not transferable

by endorsement delivery. The chances of the TDR is paid for the second time even inadvertently is remote as the receipt has to be presented only to the issuing branch for payment Hence a simple letter of indemnity is sufficient.

57. Why certificate to commence business in not called for, in case of private Limited company?

A private limited company is not required to obtain certificate to commencement of business, as certification of registration serves to dual purpose. Since no certificate

of commencement of business to private limited company is issued, banks do not call for the same.

58. Control Returns are sent by the branch managers to their Controllers at stipulated periodical intervals.

Control returns are subjected to scrutiny by the controllers to ensure that the branch manager has exercised his powers within the discretionary powers vested in him to ensure that the sanction of advance conforms to the laid down policies, terms,

stipulations of the bank and are in order. This is an administrative tool to ensure that the delegated powers are exercised properly.

59. Why two minors cannot open a joint account payable to either or survivor?

In joint accounts payable to either or survivor, each person acts as principal for himself and appoints other as his agent{s}. A minor U/s 183 read with section 11 of

the Indian contracts Act,1872 cannot appoint any other person as his agent.

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60. Why we insist for indemnity while issuing a duplicate draft? The Negotiability of original drafts is not affected by issuance of duplicate thereof.

The bank can be compelled to honor both the instruments by holder in due course. To keep its interests intact bank obtain indemnity as explained u/s 124 of Indian contracts Act, 1872. Bank can recover the amount from indemnifier in case of need.

61. An integrated approach to review and manage Stressed Assets has

been introduced. To streamline the multiple review process and to integrate the Bank's approach

towards stressed assets for effective prevention of slippage of SMAs to substandard assets and also in up gradation of sub-standard assets.

62. We stop operations in the account of partnership firm on death of a partner.

On death of a partner, partnership firm stands dissolved. To avoid application of Clayton's Rule. ? To crystallize the exact liability of the deceased partner as on the date of his death.

His survivors cannot be made liable for debits to the account after his death. As per sec. 42 of Partnership Act 1932

63. DP Note is obtained in addition to pledge of gold ornaments.

The D.P. Note is obtained in order to establish the personal liability of the customer.

It enables the Bank to proceed against the borrower on the strength of DP Note in the event of pledged ornaments when the sale proceeds are insufficient to liquidate the outstanding in the loan account on account of default.

64. Revival Letter is obtained from borrower.

All security documents are revived as per the provisions of Indian Limitation Act 1963. In case the documents are not renewed, the Bank cannot legally proceed against the borrower in the event of default on the strength of the time-barred

documents. 65. Drop Box facility has been introduced in branches for dropping of

cheques by customers. For the convenience of customers, avoiding standing at our counters in long queues

To avoid rush at our counters, so that other customers can transact their business easily Time and work saving for our frontline staff, so that they can utilize their time

for attending to other work.

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It is one of the recommendations of Goiporia Committee.

66. RBI has relaxed the rule for pension accounts by permitting banks to

open joint accounts of pensioners with their spouses.

To make it easier for old and disabled pensioners to transact their accounts By obtaining authorization for family pension in the relative PPO, the bank's risk of

continuing to pay pension even after the death of the pensioner is minimized In case of any such excess payment, it can be recovered from the family pension payable to the spouse.

67. Partial removal of outstanding from AUCA is now permitted.

To have objective assessment of realizable dues and effective management of the same If any part of the dues appears to be unrecoverable, it is better to remove the same through partial removal, so that the balance in AUCA depicts the accurate

value of realizable dues. 68. Banks are allowed to give incentives to NGOs for providing SHG-Bank

linkages. To compensate the NGOs for the work involved for them in providing the linkages It

is an incentive to increase the involvement of NGOs, and enable bank to achieve its target under SHG linkage.

69. Obtention of Revival letter and Balance confirmation letters in case of

regular Term Loan under personal segment loan has since been dispensed with.

Obtention of revival letters and balance confirmation letters consume a lot of resources. The limitation period of three years in such loans starts from the date of default of installment or call up of advance. Obtention of revival letters in case of

regular term loans is therefore redundant. 70. Agriculture Gold Loan scheme is revised.

In view of the negligible NPAs and vast potential available for increasing gold loan portfolio in agri business. The procedures have been simplified to de-bottleneck the

scheme keeping risk mitigation aspect intact. RBI has reduced the risk weightage on loans up to Rs 1 lac against gold and silver

ornaments from 120 % to 50 %. Therefore, financing under this portfolio will ease the capital adequacy ratio of the Bank.

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71. Bank will be engaging Business Facilitators and Business correspondents.

With the twin objective of ensuring greater financial inclusion and increasing the outreach of theBank combined with the need to substantially increase our market

share in the rural and semi urban area. Branch banking is ruled out due to the huge cost of opening branches and the high

cost of operation. Through Business facilitator and Business correspondent model our bank has to substantially increase our rural business base in untapped/unbaked

areas through the use of existing branch net work and new technology combined with outsourcing.

72. Bank has simplified the SME segment documentation. To standardize the different sets of document devised by the bank over a long

period for SSI &SBF. To ensure a common sets of procedure and operational guidelines recommended by the Committee set up by the Bank for the purpose.

73. Cheques payable to a firm should not be accepted for credit of the private account of a Partner without the sanction of the other partners.

It is the responsibility of the Collecting Banker to credit the amount to the payee only as per the directions of the drawer of the cheque. As per the drawers

instructions the amount has to be paid only to the firm. If it is credited to the partner's individual account the bank will be liable for conversion.

74. Bank obtains deposit and confirmation letters in case of equitable

mortgage. It denotes voluntary deposit of the title deeds by the borrower with an intention to

create charge over it for securing the advance obtained by him. Further, it is an evidence that there is no coercion for depositing title deeds.

75. Spacing norms for location of wells are stipulated by NABARD.

If wells are constructed too close they are likely to interfere with each other resulting in lowering of discharge. Hence, not viable. The purpose is defeated. The farmer borrower may not be able to repay the loan which becomes bad and

doubtful.

76. Partnership Letter (COS.37) is obtained from partnership concern when an account is opened.

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It restricts the implied authority of the partners and imposes an obligation that any change in the constitution of the partnership firm is to be informed to the Bank.

Joint and several liability is undertaken by all the partners. 77. Comprehensive Insurance Cover is required to be obtained in respect

of the hypothecated vehicles in the name of the borrower only.

In case Bank's name is also included, it is likely that the third parties may claim damages from the Bank for any acts of negligence on the part of transport operator

resulting in injury/ loss and to obviate claim by insurance company for unpaid insurance premia.

78. Our charges are to be registered with Registrar of Companies within the stipulated period.

It is a requirement under the Company Law. If the charges are not registered with in the stipulated time, the Bank may have to concede the first charge in favour of another creditor who may register their charge in the books of the Registrar.

Otherwise the entire loan becomes unsecured and it is difficult to recover the same. 79. There is a need for aggressive marketing for high value SSI Business.

The share of high value SSI advances has declined over the years. Adverse mix of low and high yield SSI business implies threat to the Bank's premier position and our

market share besides affecting our profitability. 80. The Bank is responsible for not taking reasonable care of an article

kept in Safe Deposit which was damaged due to improper/negligent handling by the Bank's Staff and absentmindedness.

As per Section 151 of Indian Contract Act, a bailee must take as much care of bailed articles as a reasonable man of ordinary prudence would take care of his own

articles of the same bulk, quality and value as the goods bailed(against destruction, deterioration or unauthorized interference by outsiders).

81. All employees of the Bank should execute Declaration of Fidelity and Secrecy?

Maintenance of secrecy in regard to the affairs of the customers is a contractual obligation (duty)of a banker. The declaration on the prescribed format is obtained to make the employees a party to this obligation.

82. Whenever a fraud occurs or a suit is filed, all the vital documents connected therein should be recorded in the Branch Document Register

and held in the personal custody of the Branch Manager.

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To ensure availability of records at the required time for verification by inspectors/auditors/ controlling authority etc and to prevent tampering with the

evidence. 83. Production of legal representation is not required for disposal of

money left with the Bank in the case of deceased Army and Air Force personnel.

Such property is governed by the provisions of the Army and Air Force(Disposal of Private Property)Act, 1950.Letter from the Commanding Officer of the unit is

sufficient to pay the Money to the dependents of the deceased) 84. Bank does not issue guarantees for an indefinite period.

The Bank's liability should be limited to a specified period and specified amount. Other wise the Bank's contingent liabilities will become unmanageable and risky.

85. Before granting an advance to company, its memorandum and articles of association should

be scrutinised. Memorandum of association defines the objectives of the company and borrowing

powers of directors are contained in articles of association. Any advance given by the bank for ultra vires activity is not binding on the Company.

86. First withdrawal on a dormant / inoperative account is referred to the Branch Manager/ Manager of Division.

To verify the genuineness of account holder, his signature etc. To establish the identity and bonafides of the payee as well as drawer with a view to obviate

perpetration of frauds.

87. An Unconditional Cancellability Clause has been introduced in the loan documents.

This is as per RBI guidelines in compliance with New Capital Adequacy Framework of Basel-II.

Borrowal accounts complying with the unconditional cancellability clause would attract zero percent Credit Conversion Factor (CCF) on the portion of the undrawn commitment.

The Bank need not have to provide additional capital on such undrawn portion of credit limits.

88. Disinfectants and anti-termite treatment in locker rooms should be

carried out regularly.

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In order to keep the locker room clean and treated against insecticides, dampness,

white ants, moth etc To avoid claims for damages, losses etc. To get protection under Section 151 of

Contract Act. To protect the image of the bank. 89. Cheques presented after business hours are not paid.

As such payments are not considered as payments in due course under Sec.10 of

the N.I.Act. To obviate any liability if the payment proves to be defective. Sec.65 of N.I.Act provides for payment of negotiable instruments during banking hours.

90. Irregularity reports are required to be submitted. To enable the controlling authority to control, monitor and guide the branch about

the irregular loan a/cs. To meet the requirements of the Scheme of delegation of financial powers for reporting, confirmation by the appropriate authority.

91. The weighing scales and bullion metric weights should be got certified annually by the govt.Weights & measures dept.

The use of unverified weights, measure, weighing & measuring instruments is an offence as per sec 264 of IPC and sec 153 of Cr.PC

As per Bank’s laid down instructions

92. Concurrent Audit is conducted at bigger branches.

To trace out errors/frauds for their rectification on an ongoing basis. To avoid accumulation of large irregularities if they are not pointed out immediately. To check whether the Systems and Procedures are followed meticulously. To plug

income leakage. To verify documentation of loans sanctioned with a view to protect our interest in case of legal disputes.

To facilitate easy conduct of Central Office Inspection and Audit. 93. Nomination facility is provided to all deposit accounts.

It is in pursuance of amendments in Banking Regulation Act,. For easy and prompt settlement of claims of legal heirs of deceased constituents.

To reduce legal costs to the heirs in getting legal representation. 94. Reasonable Notice must be given by the Bank before closing an

unsatisfactory account.

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Account is a bilateral contract. Bank cannot unilaterally close the account and terminate the contract. This is to obviate chances of litigations and thereby not

being made liable for wrongful dishonour of Cheques issued on the account. 95. Thumb impressions of illiterate Depositors and Borrowers are to be

attested by a Supervising Official on the pay-in-slip & withdrawal forms.

To obviate chances of cheating of illiterate Customers by unscrupulous persons and to avoid frauds and litigations at a later stage. It enables the Bank to establish the

bonafides and identity of the Customers. 96. Although a contract with minor is void, we open deposit accounts in

the names of minors. Why? There is no risk involved in opening of deposit accounts in the names of minors,

provided the balance is in credit. To inculcate the saving habit among the minors. 97. The Bank has recognised Training as an important intervention.

To meet effectively the growing needs of the changing scenario and environmental compulsions and not to lag behind in the competition. Towards increasing job

knowledge and skills in employees. Towards facilitating attitudinal changes.

98. We obtain Counter Guarantees from the Constituents before issuing Bank Guarantees.

In order to bind the constituent to undertake to make good or reimburse the bank

on demand all costs and damages on the guarantee in case the guarantee is invoked by the beneficiary.

99. Nominee's signature is not obtained on the nomination form. Nomination comes into picture only on the death of the original depositor. There is

no contract with the nominee. Further, to maintain secrecy and to enable account holder to change the nomination at his will in favour of any person without any legal problems, created by the earlier nominee.

100. Locking-up arrangements are drawn at Branches and approved by Controlling Authority.

It serves as a check and control over the authorised positioning/handling of keys by authorized persons vested with the power. It is a record enabling tracking of usage

of keys and to obviate unauthorised usage thereof to perpetrate frauds.

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For and Against

1.Provision of maintenance of CRR should be dispensed with.

For : CRR as a reserve is required to ensure some amount of cushion for the depositors of the Banks who have invested money in case of need. Because of CRR and SLR a run-on the Bank can be managed to some extent..

Against : Funds held in CRR are lying idle and neither earns interest for the Bank nor gainfully utilized, whereas Banks bear the cost of these funds in the form of interest

paid to the depositors. Hence, this is a drag on the Banks.

2.Govt stake in the PSBs should be brought down.

For : Banks have suffered due to several externally imposed constraints like dual regulation by the RBI and Finance Min and external vigilance agencies like CVC and

CAG. Banks have also been a victim of directed lending policy of the Government

Against : In a developing economy like India we still have a big role for the PSBs as far as Priority sector lending and Socio-economic funding is concerned. Diluting the Government’s stake in PSBs could have negative impact on these motives.

3.Payment banks are to be promoted in big way.

For : To provide availability of banking to the un-banked areas, being operated largely on mobile platform providing easy connectivity and to provide a channel for surplus funds. Cost effective, accessible and user friendly solution for the Financial Inclusion objective.

Against : Restricted offerings of these banks, challenge of diversity and chance of monopoly of large corporates are threats to this initiative.

4.Registration of EM should be made mandatory.

For : : EM in favour of Banks is not registered with the revenue authorities and our charge is not being reflected in the EC. This may lead to fraudulent sale of the asset

by unscrupulous borrowers. Registration of EM will address this issu effectively.

Against : As long as the states have not made it mandatory, co-operation from the registering authority is lacking. It will be an added burden on the borrowers as it would attract stamp duty.

5.KYC norms to be further streamlined.

For : KYC norms are to be streamlined keeping in view the unbanked population of this nation. A central KYC registry needs to be set up to obviate the problem of multiple KYC processes at different financial service providers.

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Against : KYC need to be stringent as more and more cases of Money Laundering and Financing of terrorism are being reported. A centralized maintenance may create

operational delay and drag on banks.

6. Provision ofTDS on interest paid by Banks to be dispensed with.

For : Banks have become depositors of retail customers, with the investment avenues in the country getting diversified. The TDS provision has been a bane forretail customers and senior citizens, owing to the paper work and intricacies

involved.

Against : To bring more and more people under the tax net and to curtail tax evasion..

7.Penalty for non-maintenance of QAB should be re-introduced.

For : This will ensure non-maintenance of un-remunerative and idle accounts in the bank, which are fraud prone. This will boost our other income and in-turn increasesour CASA ratio.

Against : With financial inclusion and corporate salary package where we are already offering accounts with no minimum balance requirements, this proposition holds no ground.

8. CSP (Customer Service Points) to be promoted in a big way for financial inclusion.

For : To de-congest branches and to provide banking facilities at the un-banked places where a brick and mortar bank is not profitable, CSPs are to be promoted. It

is a cost effective, accessible and user friendly solution for the Financial Inclusion objective..

Against : CSPs may pose reputational risk for the Bank if they are not being monitored and controlled properly. Additionally, service to the customers may become an issue in case existing CSP is delisted or ceases to conduct the business.

9.Social Banking objectives need to be separated from the commercial objectives of the Banks.

For : This has been a drag on the PSBs by its directed objectives, huge NPA burden and un-remunerative services. Personalised customer service is not feasible due to the volume of transactions in branches .

Against : In a developing economy like India, we still have a big role for the PSBs as far as Socio-economic responsibilities and Priority sector lending is concerned. We

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need to have a mass banking system in place to bring the majority into organised economy.

10. Mandatory maker-checker facility in the CBS to be modifed for transactions of Rs 5.00lac and above only

For : To obviate the possibility of perpetration of fraudulent transactions in the CBS.

Against : This will be a burden on already squeezed manpower and time space of the PSB functionaries. With the advent of technology unscrupulous elements can be controlled and tracked.

11.Small ticket transfer transactions to be made compulsory over alternate channels only.

For : To reduce the burden on the bank as regards time is concerned. These can be very well handled by ATMs, SBI Yono, SBI Anywhere etc.

Against : This will improve the objective of less cash economy. Cyber-crime and frauds are on the rise and the mandatory transfer of these transactions would lead to reputation risk of the bank.

12.More Banking facilities should be made free of service charges.

For : Free services would help in the objectives of financial inclusion, banking habit, proliferation of digital channels and use of institutional methods in economic activities. Making banking services chargeable would be a big disadvantage in this regard.

Against : Banks need to recover the cost involved in establishing a service infrastructure. Because of free services financial discipline is not being achieved and

also it is affecting the bottom line of the banks. Charges recovered would ensure in improvement of the infrastructure which in turn would be beneficial to the end users.

13.MDR (Merchant Discount Rate) should be completely abolished.

For : It would help in more penetration of TPD/POS devices in the retail market and the objective of less cash economy would be favorably addressed.

Against : MDR is the source of income for the Payment Gateways like Billdesk, SBI E-Pay, VISA etc. abolition of MDR would make this business unviable.

14.Variable pay structure should be introduced in our Bank.

For : Variable pay structure would ensure reward for performance and in-turn will be a definite motivation for the employees. This would improve the performance culture of an organisation and would bring a healthy competitive mindset.

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Against : Considering the varied location and opportunities of the branches of our bank, implementation of variable pay structure will result in more discouragement

among the staff.

15.SCP (Smart Compensation Package) is a right move in our Bank.

For : It would ensure retention of new recruits as they would be having a freehand in managing their earning without any administrative bottlenecks. This would reduce

the stress on the HRMS system. As the tax liability is transferred to the staff, it may ensure cost saving in the long run.

Against : Tax incidence on the staff would be increased in case SCP option is taken by official. Hence, only few takers for the same.

16. Vacation policy to be strictly followed in the Bank.

For : This is method of preventive vigilance and is being advocated by the regulators. This would improve the work life balance of the staff. Encashment of leave salary would be saved by the bank.

Against : This may result in more stress to the already overstretched staff position of branches. Customer service and continuity of services may take a hit. Staff may not

get the benefit of leave accrual to some extent.

17. Uniform to be made as part of Dress Code in our Bank.

For : A better image of our bank would be established. This would bolster our brand. Team spirit and oneness would be developed

Against : This is an archaic practice in the 21stcentury. We need to make our staff professional enough for service delivery rather than focusing on this petty practice

18.We shouldn't blindly follow the competitors.

For : We should carve a niche for ourselves having a long term vision in mind. Following competitors blindly may create risks for the whole system. We need to have our core competencies to beutilised to full potential rather than blindly following the competitors.

Against : Customers these days have become demanding and we need to have all the products/facilities, with us to retain them. We simply can't afford allowing a customer to experience a competitor first hand.

19. Customers' complaint/feedback is the best way for improvement.

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For : Complaints from customers brings forth the shortcomings of our system and to be taken positively. A customer after timely resolution of his complaint becomes

loyal to the company

Against : These days with so much of choices available to the customers we simply can’t afford to give scope for complaints. Competitors always look for the slightest of opportunity to hunt a dis-satisfied customer. With the advent of social media complaints are now becoming available in public domain and are huge reputation

risk factor for any company.

20.Outsourcing is ineffective.

For : Outsourcing has caused loss of job in the industry, frauds and loss of reputation of the bank. Monitoring the outsourced agents is a huge task for the authority concerned. Lack of professional agencies has caused more worry than good for the organisation.

Against : Outsourcing may bring more professionalism with standards/uniformity. The operational cost of maintenance is greatly reduced by outsourced activities..

21.Debt waiver is destroying the rural economy.

For : It cripples the agriculture credit ecosystem as the credit discipline, repayment mindset takes a direct hit. Moreover farmers are in distress not because of the organized FIs but more so because of the money lenders. This would also be an un-

necessary burden of the fiscal health of the nation.

Against : : Relief to farmers fighting against all odds like repeated draughts, low demand etc need to be addressed. While industrial sector is receiving so many freebies the farm sector shouldn't be deprived of some relief which are far and few

22.All business should have pages on social networks.

For : Businesses can’t avoid the huge platform to showcase their products and services. This is also very much cost effective compared to electronic/print media.

Complaint resolution is also easy in social media with simultaneous contact to a lot of customers.

Against : Using social media has become addictive in nations like china and it may cause loss of man hour. Nasty negative comments exist on social media to many visitors at a time. Fake comments and messages would add to this worry. It would

require a separate department for moderation and cyber security which add to the operational costs.

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23.Non-monetary motivation is more effective.

For : Monetary motivation has created an atmosphere of unhealthy competition. In some cases it has resulted in mis-selling with ultimate loss of brand value of the company.

Against : Monetary motivation is the biggest motivation of all and any one would always prefer to have a free hand in managing her/his money

24. Our Bank should not conduct Government business.

For: Branches are visited by much higher number of persons and hence, high value Personal Banking customers do not prefer to deal with us.

Against: Bank earns sizeable commission on Government business. The Bank enjoys floating funds on account of Government business. It enables us to have access to

Government employees / officials so that our P segment business will be increased..

25. Inefficient staff should compulsorily be retired / retrenched.

For: It will improve the efficiency and profitability of the Bank as well as customer service. Efficient and enthusiastic staff at lower levels will get chance to get

promoted to higher positions

Against: It affects the morale of the staff. It will bring in industrial conflict. Large sums may have to be paid as compensation.

26. Efficient employees should be rewarded and inefficient employees should be punished.

For: It will act as an incentive to improve profitability.

Against: Ad hoc policies may not have lasting effect as inefficiency has multiple causes

27. The names of Bank‟s defaulters should be publicized.

For: This enables other Banks to avoid lending to such defaulters. This acts as a deterrent to the willful defaulters.

Against: Sick units which can be rehabilitated will be affected as fulfillment of their credit need would be affected by such adverse publicity.

28. New Banks should be floated.

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For: The existing banking network cannot cater to the needs of the huge population of India. New banks will instill competition so that quality of service will improve.

New customer-friendly products will be introduced.

Against: Many of the existing Banks are not performing well and burdened with NPAs. The prevailing competition, among existing Banks, is already high.

29. 5-day banking should be introduced.

For: Bank employees are already overburdened and more holidays enable them to get rejuvenated. This enables them to discharge their role better in their family.

Transactions through alternate channels are also increasing.

Against: Banking industry has emerged as an important utility service for the community and hence, banking services should be available all the time. It may be difficult for the Banks to beat the competition.

30. Subsidies in the economy should be immediately abolished.

For: It is not fair to tax one section of the society and to provide benefits to another section. Subsidies became a burden on the economy. Because of the subsidies, sectors where investment is needed for the development of the economy are being

affected adversely.

Against: The purchasing power of the poor is very low and hence subsidy for essential consumer items has to be provided to them. Every citizen is not getting equal opportunities for development.

31. Right to work should be made a fundamental right.

For: Unemployment in youngsters/general public leads to frustration and poverty. Youngsters might be tempted to engage in anti-social activities.

Against: Due to lack of resources, Government is not able to provide work to all the people. It is the duty of every citizen to ensure that he works for himself and his family.

32. The nationalized Banks should be privatized.

For: Customer service has deteriorated after nationalization. Under private sector, better accountability would be established. Management control would also be better.

Against: Priority sector and weaker sections will be affected. Welfare of the employees will take back seat.

33. Income tax must be abolished.

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For: Corporates and individuals will have better incentive and motivation to work, earn and save. This enables the Banks to attract huge deposits.

Against: The Government will lose a substantial source of income so that, to that extent, welfare schemes and investments needed in important sectors will be

affected.

34. Mergers and acquisitions should be encouraged.

For: Small Banks will find it difficult to manage the risks. It will be easier for regulators to control the Banks. It is international practice.

Against.: Only merger will not solve critical problems like NPAs, unproductive branches etc. Moreover, it is difficult to deal with HR issues.

35. Employees have the fundamental right to strike.

For: An individual employee is weak and powerless against the employer. Hence strike has emerged as a collective weapon of Labor to protect their interests against

exploitation.

Against: Nowadays, society has become dependent on services provided by Labor and hence, any strike will affect the smooth functioning of society. It may become a practice by Labor to threaten the employer to satisfy their vested interests.

36. Public sector Banks should not be in the ambit of CBI / CVC.

For: Because of the fear of CBI, credit decisions are being affected. Banks’ executives have to take reasonable risks for business growth and development.

Against: Corruption is prevalent in society and Banking transactions are financial transactions and hence, Bank officials may fall prey to corruption.

37. Credit cards are ruining the credit culture in the society

For: Many a times, proper due diligence is not conduct by credit card issuers. Easy availability of credit and lavish life styles have got the young people debt-trapped.

Defaults are increasing.

Against: It is an easy, hassle-free mode of credit dispensation. It is well-established mode of credit delivery in developed nations.

38. Incentives should be given to the employees who are involved in recoveries of NPAs.

For: This will give a boost to recovery of NPAs. It serves as an incentive to staff.

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Against: Other activities like marketing, processing etc. will not get desired attention. We already have avenues like DRT, ARCs, and SARFAESI Act for recovery of dues.

39. Banks should stop performance-linked pay for their staff.

For: Productivity is varying depending upon the technology used, training imparted, and expertise in specific areas. The working conditions are not uniform for all employees.

Against: This will lead to better performance by each employee. There will be a great improvement in customer service and business. Uniform salaries have affected

the desired level of productivity.

40. Cross selling affects banking business

For: The core activities viz., deposits, advances, recovery of NPAs etc. is not being given desired attention and hence, customer service, to that extent, will be affected.

Bank employees have already been overburdened with the variety of products.

Against: As Banks are viewed as financial supermarkets and hence, all financial products should be offered by Banks. It is a profitable business.

41. Alternate channels should be encouraged.

For: Transaction cost will be reduced for Bank and therefore, profit will be increased. Customers can do the transactions on their own without any need to stand in the

long queues. It is almost impossible to offer all our services through branch network, which will cost the Banks very much.

Against: As customers will not be approaching branches and hence, it will be difficult for Banks to have knowledge about the customers need. Customers will lose human touch as they will deal with machines / systems only. Complaint management

system, in case of any hardship faced by customers, is not fully established.

42. Number of transactions in SB accounts being done through branches should be restricted.

For: It diverts the customers towards alternate channels so that, transaction cost will be reduced and thereby, profits will be increased. It enables the branch staff to concentrate on other activities viz. marketing, recovery of NPAs, housekeeping etc.

Against: Illiterate customers, customers who are not comfortable with alternate delivery channels will have to pay the cost for approaching branches. Customers will

stop coming to branches and therefore, staff will not know the customers’ needs and accordingly, business will not grow.

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43. Loss making branches should be closed.

For: Such branches are a drain on the Bank‘s resources. Their continuance will further affect the profitability of Banks. Optimum utilization of man power can be achieved by shifting them to profit-making branches.

Against: This will affect the morale of the depositors. New strategies should be evolved to make these branches productive and profit-making.

44. Banks should market housing loans aggressively.

For: It is profitable and highly secured. NPA is negligible.

Against: Interest rates have become very low due to intense competition. As the volumes have increased, in case the economy enters a bad phase, the salary earners may not be able to service the loans. Realisationthrough mortgagedproperty is also

difficult and time taking.

45. Banks should be exempted from the operation of the Limitation Act.

For: It will eliminate the need for obtaining revival letters which is a time-consuming task. Bank staff can concentrate on other profitable activities viz marketing etc.

Against: Bank staff may become complacent and may not contact the customer for recovery. Legal claims should be asserted within a reasonable time and cannot be kept alive forever.

46. SOVEREIGN GOLD BONDS, 2015-16 Introduced by the GOI

For: It is a substitute for holding physical gold. It is safe and secured investment as it is issued by RBI on behalf of GOI. The risk in cost of storage and loss is eliminated. It generates fixed income on idle investment.

Against: In case price of gold goes down, loss is born by the investor. The interest earned is not enough to beat inflation. Interest earned on the gold bonds is taxable

as per the tax bracket of investor. On maturity the proceeds are subject to capital gain.

47. LOS is mandatory for all segment products:

For: Standard and uniform appraisal system is possible through LOS. It is a tool to implement Risk Scoring Model in loan appraisals. Error free interface to process, sanction and documentation.

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Against: It is very cumbersome to process the loans under LOS platform. The workflow in LOS is very tedious. It requires uninterrupted bandwidth connectivity

and infrastructure to run..

48. Career Development System has been launched:

For: It is a tool to evaluate staff scientifically. It is a process of motivating the performers. It improves productivity with objectivity. It eliminates human emotions

in evaluation of performance.

Against: It creates lot of ambiguity in performance appraisal. It is not practical according to the organizational culture. Grading of employees promotes division. Compulsory retirement of officers on the pretext of performance evaluation is

inhuman.

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Situational Analysis

1. A firm was enjoying temporary overdraft facility upto a limit of Rs.10,000/- with the Bank for a period of four years , which was over and above the normal sanctioned limit. No document was executed for the same nor was any security

furnished by the firm. After change in incumbancy last month, The Bank unilaterally without notice terminated the facility due to which a cheque drawn by the firm was

dishonoured on the ground that there was insufficient balance in the account. The firm claimed damages for wrongful dishonour of the cheque. Discuss whether the stand taken by the Bank was correct and is the customer justified in claiming the

loss?

ANS: The firm was right in claiming damages for wrongful dishonour of the cheque. The overdraft arrangement between the bank and its customer, although called a facility is noth-ing but a contract and cannot be terminated by the bank unilaterally even though it is a tem-porary one. A banker is bound to give a reasonable notice to

this customer whenever he de-sires to execute fresh documents and provide additional security for the advance or discon-tinue availing the temporary overdraft facility. Since in this present case the Banker has failed to give a reasonable notice

to the customer the action of the Banker in returning the cheque was not correct.

2. Your branch is a forex dealing branch and Impex ltd is a valuable company dealing with

import of goods/machinery from China. You have opened an import L.C for import of a machinary which is urgently required by the company. The Machinery was despatched as per schedule by the exported and it has reached at the destinated port in India. Meanwhile, bills under the LC has reached your branch and after

lodgement , intimation of the same was sent to the customer for payment within due date.No discrepancy in the documents was observed by the Bank. Next day the

customer sent you a letter that he has concrete information that the Machinery sent by the exporter was of sub standard quality and requested the branch to return back the documents as he does not want to retire the Bill. Please discuss what should be

the stand of the Bank.

ANS: Transactions relating to Letter of Credits are governed by the provisions of UCPDC

(Uniform Customs and Practices for Documentary Credit) -600. And as per article 5 of UCPDC, Banks deals with documents and not with goods, services or performance to which the documents may relate. So, Bank is under obligation to retire/pay the bill as no discrepan-cy was there in the Bill presented, failing which there will be

severe loss of reputation for the Bank. The customer will be advised the stand of the Bank and Bank may retire the Bill by debit to the customer's account. For the future L.Cs of such nature, customer may be advised to prescribe for inspection certificate

by a firm of repute or by delegate from the company.

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3. A customer of your branch, with substantial amounts in SB account, has complained to you that there have been large withdrawals from his account. He has

denied having with-drawn the amounts. On enquiry, you learn that (a) the SB account was dormant till about two months ago, when a single cheque of Rs 2000 was paid, and (b) the amounts have been withdrawn through the ATM. The

customer has demanded reimbursement. How will you handle the situation?

ANS: Personal identification number pertaining to ATM was issued under acknowledgment. It is the primary responsibility of cardholder to keep the PIN to himself. Without the PIN no body can draw the money from ATM. It is clear from the question that the customer has mis-placed the ATM card along with PIN. He is

negligent. Bank is not liable for the contributory negligence of the customer. Bank should politely decline and plead its inability to make good amount drawn through

ATM.

4. A,B & C are partners and availed an OD of Rs.50,000/-. A died, when the balance in the OD a/c is only Rs.21,000/-. After receiving the notice of death, a cheque for

Rs.8000/- came up for clearing. What will you do?

ANS: It will be returned with a remark, "A, a partner in the partnership, deceased", since the death of a partner constitutes dissolution. Even if there is a provision to continue the partnership after death of partner, the legal representative or the estate owned by the deceased, will not be liable for the liabilities undertaken by the

firm after his death.

5. About 5 years ago, Mr. Rakesh Kumar, a wealthy influential customer of the branch, of

which you are the manager, had some contention with the previous Branch Manager. As a result he stopped using his current a/c leaving a minimum balance. Thereafter, the account remained dormant after change of status by the core banking System. After 6 months, you received a legal notice from the depositor

claiming damages in the matter of a status report furnished by your branch to another bank. After perusal, you came to understand that the concerned officer,

after verifying from the current records, replied to the other banker that "RK does not maintain an active account with this branch". Discuss the bank's position.

ANS: Even though the account was treated as Dormant account and transferred to Dormant account, the customer's right on the property/balance does not cease and there is no law of limitation acting on the deposit balances. It follows that as the

customer's current account was still technically open, the bank was at fault in giving a wrong opinion report. But in this case, since the depositor has not operated the account for the past 5 years, even, if the bank was aware of the banker-customer

relationship, it is hard to see how the branch could have given an answer which would have materially assisted the enquirer. Moreover, it is particularly difficult to see how the customer could have suffered real damage from the form of reply.

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Further, it is strange to note that how the customer could have directed the enquirer to ask about his account which was not at all operated for the past 5 years. It is

suggested, therefore, that the best manner in which to handle a reply to the legal notice would be to put the onus of responsibilities on to the lawyer, and to ask him how their client has suffered loss as a result of the reply.

6. Mr. Rakesh Makhija a S.B. account holder draws a cheque for Rs.2000/- in favour of Roshni, his daughter aged 15 years. When Roshni presents the cheque for

payment across the counter, the Single Window Operator refuses to pay the cheque because in his view, Roshni being a minor can not receive payment of a cheque. How will you handle the situation?

ANS: In terms of Section 26 of N.I.Act a minor can draw, endorse, deliver and negotiate any negotiable instrument so as to bind all parties to the instrument except himself / herself. As such a minor can become a payee of cheque without any legal impediment. The SWO will be explained the legal position in this regard. After

making enquiries and satisfying on the identity of the payee the SWO will be instructed to process the cheque for payment.

7. As Branch Manager you notice that in the first week of the month your branch is crowded with customers who want to withdraw money from their accounts (salary, pension etc). People generally prefer coming to the branch even though most of

them have ATM cards. These huge crowds make your VIP customers vary of coming to branch for their work. Explain how you will deal with this issue.

ANS: As Branch Manager, I would address this issue on the following lines:

Crowd management in the First week would be given topmost priority. Attention would be paid to seating and other arrangements. At the same time, I would also ensure that the crowd is not blocking the entrance and movement of other customers in the banking hall.

Secondly as a long term measure, I would ascertain the cause of ATM Card holders not opting to use ATMs for withdrawals. This issue would be addressed by

educating customers about the convenience factor in ATM and by demonstrating how easy it is to

use an ATM Card. Confidence building in customers would be undertaken by speeding up and attending to withdrawal related ATM complaints

immediately.Further, the front line staffs would be asked to persuade the customers to use GCC facility. Also, I will take up the matter with the controller/ Alternate channel depatment for installtion of GCC in all the Single window counters.

Organise a staff meeting about how they can be benefitted by lesser crowds if they take pains to educate customers about usage of ATM and other channels.

The HNI customers would be provided with separate seating space and counter for exclusivity and privacy of their transactions.

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08. After several years, your bank has recruited Probationary Officers once again. The two new recruits who have joined your semi-urban branch are young, smart and

computer savvy. Belonging to the bold new generation, they are not given to the usual mannerisms of docility and obedience that you and your supervisory team expect. HO has already informed that these two are to be absorbed permanently in

your branch. You can sense mounting of tension in your strong team of 20, which was hitherto a peaceful group. Your accountant who gives you excellent support seems to have a problem with the young man while the young lady seems to be the

target of every staff member /customer's attention. You feel that the situation may go out of control if the staff's attention continues to be focused on these youngsters.

As a branch manager, you are very keen to retain the youngsters and make full use of their knowledge and energy to bring in new vitality. How would you propose to handle the situation?

ANS: My staff member's agitation over the issue of the newcomers half their age with equivalent salary has to be necessarily viewed with empathy and sympathy. Similarly the accountant's irritation with the youngsters is also understandable. Team

work and group cohesion is critical in branches like mine which are in remote areas and have to manage without much support from other branches. Making the new members a part of the existing team therefore will be a priority. Since the young

officers are intelligent, I will focus on harmonization of their academics / technical advantage with experience of senior staff. Suitable group activities may be organized to promote better interaction with two new members.

LINE OF ACTION:

A meeting with the new staff members will be conducted in which they will be oriented towards the existing organizational culture in brief, and exposed in details the set-up of the branch, its working and the about the importance of senior staff.

I would request a senior lady member of the staff to take the young lady under her fold Initially, I would post the lady to a department which is not associated with the public dealing.

Similarly, the male PO will be placed with senior accountant with the understanding that he will be a mentor to the PO. I would form a team for recovery of the bad loans and ask the young man to assist my Accountant. Recovery work is not

associated with computers and also is an area of strength for my Accountant. This gives him an opportunity to project himself as a useful team member and also would draw respect from the youngster when he sees how his superior handles tough

customers.

I would arrange for a picnic / get together and invite the staff along with their family members.

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Seeing the lady in the company of the family members would help my staff to realize her identity and bring the correct perspective.

I would also counsel the youngsters on dress and behavioral codes in as subtle a way as possible.

I would recommend to Head Office to arrange an orientation programme for the PO's at the earliest. Moreover they should be subjected to Leadership

Development/Management Development training programmes.

Design a fortnightly review of working of the arrangement and seek staff suggestion for improvement in the same.

09.Your bank as a secured creditor of a manufacturing unit has issued 60 days notice, under SARFAESI Act-2002 to the borrower who has defaulted in repayment. The borrower has failed to discharge his liability within the period

specified. In such a situation, what measures secured creditor may take recourse to recover its dues?

ANS: After expiry of the 60 days notice period, bank will take the possession of the securities charged with the bank and after giving the 30 days public notice, move to sell the securities through auction.

In case of movable security, bank, after taking the possession, will make the inventory and

panchnama and thereafter will sell the goods. However, in case of immovable property, bank will conduct the auction after expiry of public notice period and

confirm the sale in favour of the highest bidder. For participating in the bid, party will have to deposit 25% and remaining amount will have to be paid within 15 days after confirmation of the sale by the secured creditor (bank). Alternatively, bank can

do securitization of the loan and sell the same to the securitization company.

10.Mr. "X" raised a loan of 20,000/- at your Branch against the pledge of gold ornament. On his failing to honour commitment regarding payment, in spite of repeated reminders, the ornaments were auctioned and after applying proceeds in

satisfaction of the dues to the bank, the balance was remitted to him by means of a banker's cheque / pay order. Mr. "X" now moves to the court with a plea that the gold ornaments represented only a collateral security, the primary security being the

demand promissory note and the bank had no authority to dispose of the ornaments in the manner it has done.

ANS: If the gold ornaments were auctioned after giving a reasonable notice to Mr. "X" as such notice is mandatory, "X"s plea cannot be sustained. In this case, the contract Act. 1872, Sec.176 provides,"if the pawnor make default in payment of the

debt , or performance at the stipulated time of the promise, in respect of which the goods were pledged , the pawnee may bring a suit against the pawnor upon the debt or promise and retain the goods pledged as a collateral security or he may sell

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the things pledged on giving the pawnor reasonable notice of the sale". Therefore the action of the bank is in order and the claim of Mr X is not tenable.

11.Mrs. Sudha Arora is maintaining a Savings Bank account with a Branch of Axis Bank; however, she has a term deposit of Rs. 4, 00,000.00 with our

Kolabar Branch. She has seen an advertisement for investing in an IPO (Initial Public Offer) of a company and she wants to invest in it. She also wants to invest in NFOs (New Fund Offer) of Mutual Fund. She doesn't want to give a cheque and fill up the

clumsy application form. She enquires about any facility provided by our Bank or subsidiary. As a Branch Manager what would you suggest Mrs.Arora.

ANS: Point to be mentioned

a) Open SB Account using Online Account Application facility and given INB facility.

b) Open Dmat account.

c) Open Trading account with SBI Caps

d) Three in one (e-Ztrade) facility has to be given

e) Have to highlight the facility under e-invest (ASBA)- who is eligible need to be

mentioned

f) Can be invested both IPO and NFO of MF need to be mentioned

g) ASBA process may be mentioned

12. Mr. Sinha maintains an account with us. A court attachment order for Rs.25000/-

on the

account is received. How you will deal with the following situation as a Branch

manager.

(a) Mr.Sinha has tendered Cash Rs.15000/-for purchase a Draft.

(b) Mr. Sinha also maintains a joint account with his wife with credit balance of

Rs.5000/-

(c) A credit vouchers for Rs.7000/- being S.C realized has been released.

(d) A Draft for Rs.7,500/- presented in clearing for credit of current account has

been paid

(e) Mr. Sinha has tendered a clearing cheque for Rs.2000/- which will be presented

in the clearing.

(f) Mr. Sinha's Current account has been overdrawn by Rs.5000/-

ANS:

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(a) Not Attached: Only Debts 'owing and accruing due' to the judgment debtor at the hand of the Bank are attached.

(b) Not attached: As the attachment order is in the sole name of Mr. Sinha, the joint account not attached as it is not in same capacity and same right.

(c) Attached: if at the time of receipt of attachment, the Proceeds of the collection cheque have been ralised.

(d) Attached: Same as (c)

(e) Not attached: future credit has not been attached

(f) Not attached: As no amount is owed to Mr. Sinha.

The Hon'ble court will be advised accordingly and also the customer.

13. A prospective customer for Cash Credit has approached with your Branch with the Balance Sheet of his Firm, you have to workout the following on

the basis of the Balance Sheet. (a)Debt Equity Ratio (b) Net Working Capital (c) Tangible Net worth, (d) Quick Assets (e) Quick Ratio (f) Current Ratio

Balance Sheet of M/S Singh & Singh

Liabilities Rs.in '000 Assets Rs.in '000

Networth 1500 Raw Material 1500

Sundry Creditors 1500 Finished Goods 700

Cash Credit 2000 Receivables 1500

Term Loan 2000 Fixed Assets 3000

Prepaid Expenses 300

(a) Debt / Equity = Term Liabilities/ Tangible Net worth= 2000/1500= 1.33

(b) Net working Capital = Current Asset - Current Liability = (RM+ FG+

RCVBLES+PREP EXP) – (SC+CC) = (1500+700+1500+300) - (1500+2000)= 500

(c) Tangible Net worth =NW- Intangibles=1500

(d) Quick Assets =Cash + Bank Balance + Book Debts + Receivables= 1500

(e) Quick Ratio = Quick Assets / Current Liabilities = 1500 / 3500 = 0.43:1

(f) Current Ratio = Current Asset / Current Liability= 4000 / 3500 = 1.14:1

14.Ms. PQR reported to your branch that her husband is not traceable for the last 2 yrs and she is facing hardship. There is a fixed deposit for Rs. 1 lac in the name of

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her husband in which she is nominee. She wants to claim payment of the deposit. As Branch Manager how you will help her?

ANS: The settlement of claims in respect of missing persons is governed by the provision of Section 108 of the 'Indian Evidence Act, 1872'. As per the provisions of

section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of his /her being reported missing. As such, the nominee /legal heirs have to raise an express presumption of death of the

missing person under section 108 of the Indian Evidence Act before a competent court. If the court presumes that he/she is dead, then a certificate to that effect is issued and the claim in respect of missing person can be settled as is done for any

other deceased accounts. With a view to alleviate hardship to claimants in respect of Missing Persons, it has been decided to entertain small value claims without a valid

death certificate. In line with the RBI instructions, it has been decided that the claims up to a threshold limit of Rs 100000/- (Rs one Lac only) will be entertained without insisting for valid death certificate. All such claims in respect of missing

persons, reported missing for a minimum period of one year, shall be settled on production of the following documents.

1. FIR, 2. Non-traceable report issued by the police authorities, 3. Indemnity from the claimant.

The AGM/RM of the respective region will be the authorized authority to settle such claims.

The claims in respect of missing person above Rs 100000/-- may be settled as per the existing instructions i.e. after getting court order from the competent court.

15.Mr. Krishna, an Accounts Officer with BHEL, approaches your branch for taking a DD for Rs.10,000/- favouring BITS,Pilani. He has been taking drafts for similar

amounts quite frequently in the last 6 months. What would you enquire with Sri Krishna, and what suggestions would you make to him as an officer of the Bank?

ANS: I would:

Ascertain if the remittance was for the studies of his ward in Pilani

Enquire about arrangements made for financing the education of his ward, and whether he needed any Student Loan, and would highlight the income tax benefit u/s 80E on the interest paid towards education loan, Govt subsidy/relief etc whether his ward maintained an SB account with our branch or the branch at Pilani. I would

persuade him to open SB Account using Online Application if not already having one.

Highlight the facilities available through ATM Cards, Internet Banking,MBS,GRC, to make transfer of funds easier and cost-effective for him, instead of taking DD

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Try to cross sell products of SBI Life such as Super Suraksha, or Edushield (in case he is interested in Student Loan), etc.

Persuade him to take a credit card with an add-on card for his ward On the whole, project an image of a customer-friendly Bank, keen to serve its customers better

16.A loan account is irregular and the debit balance therein is Rs.86320/-. The borrower has been requested to regularize the account. In spite of repeated

reminders, he has not taken any steps in this regard. Within the next month, the documents held on the account will get time barred. In the meantime you have noticed that the Guarantor of the above loan account has a current account at the

branch which has a credit balance of Rs. 95,324/-. Can the Bank exercise the right of set off by transferring sufficient amount from the current account of the guarantor

to the loan account of the borrower?

ANS: Bank will recall the advance and make a demand on the borrower and the guarantor.

Reasonable notice will be sent to the guarantor for exercising the right of set off. Thereafter, bank will recover the money after debiting the guarantor's account. The liability of the guarantor arises only after principal makes the default. Once the borrower makes the default and the demand is made on the guarantor, both come

on the same level and bank can recover the money from anyone also Surety.s liability is co-extensive with that of the principal debtor, unless provided otherwise Section 128 of Contract Act,1872. After recovery from the guarantor, certain rights

are available to him under the Contract Act and as per these rights; he is entitled to all the securities of the borrower with the Bank.(right os Surrogation) Therefore, bank will hand over the securities to the guarantor after taking proper

acknowledgement and the borrower will be intimated accordingly.

17.Dagarapada farmer service cooperative society is maintaining their current account with your branch. The Accountant of the society has submitted a cheque favouring K.Ramdas for Rs.45000/- and crossed account payee and requested you to

credit the proceeds to the society's account. On the reverse of the cheque the society has given endorsement that "Received payment. Payee's account will be credited on realization". Discuss whether the cheque under question can be paid to

the society's account. Is the position changes if the amount of the cheque is Rs.55000/-? Discuss.

Ans:Banks are prohibited from crediting 'account payee' cheques to the account of any person other than the payee named therein. However, With a view to mitigate the difficulties faced by the members of cooperative credit societies in collection of

account payee cheques, relaxation was extended by RBI vide their instructions, in terms of which, banks may consider collection of account payee cheques drawn for an amount not exceeding Rs.50,000/- to the account of their customers who are

Crediting to Co-operative Credit Societies, if the payees of such cheques are the constituents of such co-operative credit societies. Hence in the instant case, the request of the society for crediting the proceeds of the cheque of Rs. 45,000/ to

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their account can be acceded to provided the cheque is otherwise in order. We can not collect and credit the cheque to the society's account, as the amount of the

cheque is Rs.55000/-

18. A newly confirmed Probationary Officer has been posted as an Asst. Manager (adv) in

your branch. In your branch, the post dated cheques for the loan repayment are there in heaps without proper arrangement or plan. The new official is very new to advances and as a branch manager how you will advise him to streamline the process for efficient follow up of these repayments

Ans:The official will be advised to proceed as under to set thing in order.

a) To arrange the cheque in order, borrower wise and date wise so that cheques

which are overdue for presentation if any can be presented at once.

b) To verify and ensure that dates of PDC synchronise with salary credit, rent credit

etc where payment is linked to such credits. In other cases cheques should have

been dated prior to 7th of every month.

c) To verify that the number of cheques cover the full repayment period; in case of

longer

period advances at least 48 cheques should have been obtained. It would also need

to be

ensured by him that the cheques crossed with the bank's special crossing seal.

d) A diary note for obtaining of PDC from the period the cheques are not available

for repayment.

e) As regards custody of the cheques, the following should be ensured.

i) PDC should not be kept with security document.

ii)PDC to be kept in joint custody of Asst. Manager/Deputy Manager / Manager

(PBD/ DBD) / Accountant/ Cash officer in a fire proof safe.

19. You are the branch manager of a branch which is situated in an extremist area .your

accountant has received a letter threatening that he has to give Rs.10 lacs if not they will kill him. He has feared and came to you and asks you for sanction him leave for a week. The local unit of officers association also asks you for protection to the staff. Please discuss the situation and what will you do?

Ans:It is a very serious situation which is affecting the bank's smooth functioning and safety of the bank staff. The matter will be reported to the AGM (Region)

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immediately over phone so that he will take up the matter with the highest police authority in the state to provide protection to the branch property and personnel.

The Dist Supt. of police should be contacted without any loss of time with a request to provide protection to the bank and its personnels, particularly the accountant. We may also personally call on the Dist. Collector and acquaint him with the situation as

it is a matter affecting law and order. The accountant has to be assure his safety. We may also examine providing private security as an extraordinary case, with the approval of the C.A. We have to convince the accountant that his going on leave is

no solution to the matter. The threat may be repeated to the relief accountant. Privately arranged security guards have to be posted at the branch with the approval

of the CA. The suggestion and guidance of the chief security officer of the bank will be obtained and strictly complied with. The association has to be taken into confidence and appraised of the line of thinking and action proposed to be taken.

Our tight security measures would thwart the efforts of the extremists and they may abandon and go away from the scene. The police will investigate and take appropriate follow up action. The branch manager and every staff members shall be

vigilant without allowing any slackness in our preparedness to meet any crisis.

20.Harihar had a locker in his sole name in our bank. He died in an accident last week. Today, his son Ramnath comes to you with the locker keys and a Will in the handwriting of Harihar stating that the contents of the locker be delivered to him. Simultaneously, Sunanda, daughter of Harihar also gives a letter to the bank, stating

that she has also a claim to the property. How will you deal with these claims?

Ans:Discreet enquiry will be made to ascertain the incidence of death. As a matter of courtesy, the bank will send a letter of condolence to the family members. The death certificate has to be called for and carefully scrutinized. A Will has to be properly executed and witnessed; further, it has to be probated. A Will without

probate cannot be executed; further, there should not be any counter-claim. The bank cannot deliver the contents of the locker to Ramnath in view of counterclaim

from his sister. The matter has to be explained to him suitably. He will be advised to get a probate from the appropriate court. Sunanda,'s request also cannot be accepted. As the bank knows that prima facie, there are two legal heirs, Probated

Will or Letters of Administration would be needed. It will not be advisable to deliver the contents under indemnity- cum-affidavit basis as there is obvious disagreement between the claimants Sunanda,will be advised that a suitable Court order is

necessary for delivering the contents of the locker to her. . The matter has to be reported to Controlling Authority for instructions.

21.Neerahalli, a village in your service area, has a bad record of recovery. You have decided that you will stop granting any new loans to the village unless the recoveries are improved. One day, a large group of villagers of Neerahalli, under the leadership

of a local politician, gather in front of your branch threatening to stage a dharna if you do not assure them that you will sanction loans to people of their choice. How will you react to this situation?

Ans : I will call the Village Heads and Panchayat members to my room and tell them that the Branch cannot accede to such a demand. Sanctioning of loans is the

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decision of the Banker based on the merit of each case. I will make them understand that if there is no recovery from the village then the reputation of the village is

tarnished. The village will be blacklisted and further loans cannot be given. Since Banks are dealing in public money, we are accountable to the general public, RBI and to the Govt. I will show statistics to prove my point. I will seek the help of the

villagers in recovery and then assure them that if the recovery improves, I shall reconsider my decision. I will show them the better recovery position in other villages compared to Neerahalli. I will drive home the point that willful defaulters

cannot be entertained.

22.An old and incapacitated customer of your branch wants to withdraw a sum of Rs.5,000/- from his SB account. However, he is unable to come to the branch and wishes it to be withdrawn by a person known to him. How will you help him?

Ans. If thumb impression of the incapacitated person can be obtained, then this impression would be identified by two independent witnesses known to the bank,

one of whom should be a bank officer. If even thumb impression can not be obtained, then body- mark can be obtained on the Cheque/withdrawal form which should be witnessed as stated above. The person who will actually withdraw money

on behalf of the incapacitated customer will have to be identified by two independent witnesses. This person (receiving the money) should also furnish his signature to the bank.

23. You are the Branch Manager of Haripur Road Branch. Mr Ravishankar is your valued

customer. He complained you that one of his pass book entry shows cheque bearing no. 123456 has been debited to his account for an amount of Rs120000/-. The

cheque is with him and he disowns the issue of cheque. On enquiry in CBS it was revealed that the cheque has been paid at Ramnagar Branch. The signature on the paid cheque resembles with the signature of Sri Ravishankar to some extent. How

you will proceed in this matter.

Ans. As the original cheque is with Sri Ravishankar, it appears that the cheque has been fraudulently encashed at Ramnagar Branch. Ramnagar Branch has failed to apply due diligence. They have not verified the multicity cheque features as per the

Bank's extant instruction. The features of paid cheque doesnot confirm to the CTS-2010 standards. The tests like fugitive ink/water droplet test, Ultra-violet lamp test, void pantograph test etc could have been done to avoided the fraudulent payment.

Moreover as the amount of cheque is more than Rs1 lakh, it is mandatory to make a call to the drawer of the cheque. In case the drawer does not attend the call, the home branch could have been contacted or an e-mail could have been sent to the

home branch asking for the confirmation.

The signature of Sri Ravishankar has not been verified carefully. In case the signature does not tally and there is an iota of doubt, the passing official could have consulted the Branch Manager and could have taken extra precaution in passing the cheque. This was overlooked by the Ramnagar Branch. The cheque with forged

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signature is null and void in the eye of law and will be treated as if there is no mandate from the drawer. Therefore the banker is negligent in it's duty and the

payment is not payment in due course(as per section 10 of Negotiable Instruments Act.) In this perspective bank will be held liable for wrongful conversion and should make good the amount to Sri Ravishankar. The branch should take the permission of

the controller for restoring the amount into customer's account

24.The account of a firm is overdrawn but each of the partners has a private account with a credit balance. Under what circumstances could the bank set-off those balances against the firm's debts?

Ans. Every partner in a partnership is liable, jointly and severally, for all acts of the firm done while he is a partner. This liability is unlimited and extends even to the

private property of the partner concerned as per Section 25 of the Partnership Act, 1932

This does not give the banker, however, an automatic set-off between the overdrawn account of the partnership and the credit balance(s) in the individual partner's account. If the banker wishes to exercise such a right, the bank's usual

letter of set-off should be got signed by the partners in their personal capacities or individual letter of authority should be taken from each of the partners authorizing the bank to transfer funds from their individual accounts to the account of the

partnership as and when it is overdrawn.

25. Discuss the bank's general lien in the following cases:

(1) X has deposited gold ornaments in safe custody and his current account has been overdrawn.

(2) A, B, & Co. with A and B as partners, have overdrawn their current account. A has a current

account in his personal name with a sufficient credit balance.

3.P maintains a current account, which is overdrawn; P and Q have a joint current account which shows a substantial credit balance.

Ans.

(1) In the matter of gold ornaments in safe custody, the relationship between the bank and the customer is that of a bailee and bailor; the bank cannot, therefore, exercise a lien on the articles deposited in safe custody for an overdraft on his

personal current account.

(2) The bank has no right of set-off as the two debts are not in the same rights and same capacity.

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3.The bank has no right of set off as the CA is jointly with Q, the said Joint CA is not the sole ownership of P.

26. M/s Santa & Co has availed a cash credit loan for Rs. 10 lacs against security of stock.

The loan was guaranteed by Mr. Banta . The loan became NPA after some time. Bank has given notice to both the borrower & guarantor. But they have not responded. Bank has recalled the loan. Bank has sold the pledged goods for Rs. 6.00

lacs and initiated legal action. But the guarantor contended that since the bank has sold the goods without his consent, he is not liable. Discuss bank's action.

Ans:Guarantor's liability is co extensive with that of the principal borrower as per Section 128 of Contact Act which also being upheld by the Apex court in a recent

judgment. In the instant case, It is in order for the bank to sell the pledged goods and effect recovery of Rs.6.00 lacs. As goods pledged to the bank form part of the primary security, obtaining of guarantor's consent is not essential. Hence, the

guarantor's liability does not get extinguished and the contention made by him is not tenable.

Therefore the Bank is well within its rights to initiate legal action to recover the shortfall.

27.Smt. K.Padmini, who was maintaining Rs..2 lacs in the Savings Bank Account, died recently. Today you have settled the account, by transferring the balance along with accrued interest for credit of Shri K.Suresh, his son and also the nominee of the

account. However you have received an Income tax Attachment Order against Smt. K.Padmini for Rs.50,000/-. How do you deal with the situation?

Ans:a) Income Tax Attachment Order is for the dues from Smt. K.Padmini to the Government hence attachable irrespective of existence of the person. Since the Bank has already parted with the fund and duly discharged hence absolved. The Inocme

Tax Authority will be informed the same by giving the details about Smt. K.Padmini, the nominee, so that they can proceed accordingly.

28.A Bank has sanctioned a Cash Credit facility to a partnership firm for procuring the goods. The goods have been hypothecated to the Bank. It had also given loans

to the individual partners. The goods hypothecated were destroyed by fire and the bank collected the insurance proceeds. The Bank utilized the insurance money for wiping out the loans of individual partners. The firm contended that it was not

obliged to do so. Discuss.

Ans. It seems that the Bank in applying the insurance proceeds to wipe out the loans of individual partners relied on the belief that partners individually and firm are no difference. This kind of feeling does not seem to be correct. Under section 43 of the Indian contract Act, the liability of joint borrowers is not only joint but several.

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Thus, individual partners may be held liable for the debts of the firm. But, the firm represents partners in a particular relationship and hence the reverse shall not be

true, i.e. the firm shall not be held liable for the borrowings of the individual partners. It was, therefore, uncalled for on the part of the bank to have applied the insurance proceeds representing firm's security against debts of individual partners.

The contention of the firm that Bank should give credit for insurance proceeds seems to be justified.

29.A cheque for Rs 500/- is issued by the drawer leaving space before the amount in words &figures. Payee of the cheque changed the amount to Rs 5500/-. Cheque is presented for payment and honoured by you. Please justify your action.

Ans:In this case, the amount of the cheque has been changed which is a material alteration. Therefore, it requires drawer authentication. It also appears from the case that the payee had been to able to make such change due to negligence of the drawer in writing the cheque and Under Sec 89 of NI act statutory protection is

available to the paying banker in case of payment of cheques which have been materially altered provided the alteration is not apparently clear and payment is made in due course. In the present case, both the conditions appear to be fulfilled

as there is no ground to believe that payment has not been made in due course. Therefore, paying banker can seek protection under section 85 of the NI Act.

30. Y reports death of her husband X maintaining a SB A/c. She claims the money lying in X'saccount (Rs 43000/-) as nominee. She submits an acknowledgement issued by bank mentioning therein her name as nominee to the account. On

scrutiny, however, it is observed that nomination form was not signed by X. Smt. Y is mother of a 15 year old daughter only.How will you help Y in such situation?

ANS:

Nomination in favour of Y by X cannot be considered valid as the Nomination form

has not been signed by the depositor. The bank should apologize for the mistake

and should facilitate the settlement. They should also assure Smt. Y of all

cooperation in smooth settlement of a sum of Rs 43000/- held in her husband's

account. She will be advised to submit the following documents:

a) Death Certificate of Mr. X

b) Claim format signed by the Smt. X together with declaration from one

independent person, in respect of legal heirs of deceased Mr. X, known to the family

of the deceased and acceptable to bank

c) A stamped Letter of Disclaimer to be signed by Smt. Y on behalf of her minor

daughter Ms Rekha

d) A stamped Letter of Indemnity to be signed by Smt. Y (Claimant)

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In this case, No sureties are required as the claim amount is below Rs 50,000/-.

Such type of cases should be dealt with empathetically.

31.Sri Krishna Ballabh Sinha is a visually impaired/blind person. He can sign

consistently. He wants to open a self operated cheque facility Savings Bank A/c.

What procedure you will adopt to accede to his request? If, he would not have been

able to sign uniformly do you envisage any change in the procedure?

ANS:

i) In terms of revised RBI/IBA guidelines in this respect Sri Sinha will be permitted to

open

self operated cheque facility SB A/c.

ii) Sri Sinha needs to be informed/explained about his 'rights & liabilities' as account

holder.

iii) Third party cash payment of self drawn cheques by visually impaired persons is

now permitted

iv) He is also not required to submit any undertaking

v) Since he is able to sign the cheques consistently, affixing his thumb impression at

the time of issuing cheque is not required

In case, he feels that his signature may not exhibit consistency does not mind

branding

"CARE -Depositor Visually Impaired" stamp, in order to avoid the 'cheque being

returned unpaid' on account of 'difference in the signature', in such cases a written

request for branding the cheques may be obtained, cheques shall be branded and

thumb impression shall also be obtained and witnessed by the Bank Official under

his signature and specimen signature number, along with the Bank stamp.

32.Mahesh, a Single Window Operator, detects counterfeit notes while accepting

cash from a well known customer, Dr Binod Prasad Garg, of the Branch. Dr Garg

says that his attendant might have received these from some patient. He requests

Mahesh to return the suspected notes to him. You are Cash-in-Charge of the Branch

and Mahesh approaches you for guidance. Please, therefore, suggest him the

necessary steps to be taken in such situations.

ANS: Mahesh will be advised to politely request Dr Garg to cooperate in this regard

so that compliance of RBI's guidelines may be ensured:

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i) Counterfeit notes will be branded with stamp reading 'COUNTERFEIT BANKNOTE

IMPOUNDED'.

ii) An acknowledgement receipt will also be issued mentioning therein Name and

address of Dr Garg, Sl No of notes, Denomination and parameter on which the notes

are deemed as counterfeit.

iii) Receipt will be signed by Mahesh (Cashier). Dr Garg (tenderer) will also be

requested to countersign the receipt. Receipt will, however, be issued even on denial

of Dr Garg to sign the receipt.

iv) Each such impounded note shall be recorded in Forged Note

Detection/Impounding Register under authentication.

v) For cases of detection of counterfeit notes upto 4 pieces, in a single transaction, a

consolidated report should be sent by the Nodal Bank Officer Local Police Authorities

or the Nodal Police Station, along with suspected counterfeit notes at the end of

month. For cases of detection of counterfeit notes of 5 or more pieces, in a single

transaction, the counterfeit notes should be forwarded by the Nodal Bank Officer to

the local police authorities or the Nodal Police Station for investigation by filing FIR

vi) A copy of the monthly consolidated report/FIR shall be sent to the Forged Note

Vigilance Cell of the bank.

vii) Acknowledgement of Police authorities should be obtained for notes forwarded

to them

both as consolidated monthly statement or FIR.

vii) By 7th of next month, a report on counterfeit notes detected will be submitted to

a) Concerned Issue Office of Reserve Bank and

b) Under section 3 of PMLA to the Director, FIU-IND Financial Intelligence Unit,

India.

33. Mrs. Asha Trivedi was issued a cheque for Rs 2.50 lakh by LIC of India against

final

settlement of a policy on the death of her husband, Mr. Tribhuvan Trivedi. The

cheque was

deposited in the drop box at your branch for credit to her A/c. After a lapse of one

week, when she enquired about the non credit of the cheque in her account, the

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cheque could not be traced. She is in urgent need of money due marriage of her

daughter. How you will handle the situation?

ANS:

i) Drawee bank/bank will be advised the particulars of lost cheques for exercising

caution

against payment

ii) Mrs. Trivedi will be assured of our all assistance in obtaining a duplicate

instrument from

the drawer/ maker of the instrument (LIC of India)

iii) Actual charges of recording Stop Payment instructions levied by drawee bank will

be borne by the Bank

iv) Actual charges levied by the drawer/bank in issuing duplicate cheque/instrument

will also be reimbursed, subject to a maximum of Rs 250/-

v. Interest on the amount of the cheque for a further period of 30 days at

Savings Bank rate will also be provided for possible further delay in obtaining

duplicate cheque

34.Mr. & Mrs. S C Gupta reports that last night robbery was held at their residence

in which key of their locker at your branch was also taken away. They are quite

apprehensive that the key may be misused to operate the locker. How will you help

them?

ANS: We will assure them that due care and necessary precaution is exercised at

the branch in operation of the locker to prevent any unauthorized access to it.

Before allowing the access to the locker, the signature of the hirer is obtained and

verified on the SD Locker Access Register. Mandate for operation is also verified and

access is allowed to the hirer(s) as per mandate only.

They will also be advised to report the loss of key in writing signed jointly by them.

Necessary remark regarding loss of key should be put in place in the locker which

would act as a caution.The date for breaking open the locker will be fixed with the

manufacturer of the locker as per Mr. & Mrs. Gupta's convenience. A service charge

of Rs 750/- in addition to actual expenditure incurred for breaking open the locker

and changing the lock by manufacturers of lockers shall be payable by them. The

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breaking open exercise of the locker will be performed in their presence and suitable

undertaking will be obtained and kept on record.

35.What actions you will take when rent is overdue in a locker?

ANS: Following Procedure will be followed in case of non-payment of rent of a

locker

i) Reminder will be sent to the hirer (s) on due date i.e on 2nd April

ii) If the rent is paid in 1st Quarter, normal locker rent plus 10% of annual rent will

be recovered as locker rent overdue charge. If the rent is not paid, another reminder

will be sent after 1st quarter.

iii) In case of payment by the hirer (s) normal locker rent plus overdue locker charge

(25% of Annual rent) will be recovered. Otherwise, Notice on COS 405 will be sent

after lapse of 2nd quarter.

iv) Notice on COS 406 will be sent after 1 year. If rent is paid during the period

(within 1 year) appropriate overdue charge will also be recovered along with normal

rent.

v) In case locker rent remains unpaid even after serving notice on COS 46, the

recovery of

arrears of rent may be made by sale of contents of locker.

vi) Controlling authority's approval will be obtained before breaking open the locker

vii) After breaking open the locker inventory of contents shall be prepared in the

presence of two officers of the branch and two independent witnesses.

viii) Contents so found in locker will be valued by an approved Govt Valuer and kept

on record.

ix) Arrear of rent may be realized by sale of the contents

x. Remaining contents will be kept as a Safe Custody item under joint custody of

Joint Custodians

36. Mr. & Mrs. Sharma are having a locker to be operated by either of them or

survivor. Mr. Sharma requests you in writing that Mrs. Sharma should not be

permitted to operate the locker. Discuss the situation.

ANS: If the locker is in joint names, access to the hirers is allowed only after

verification of

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mandate for operation recorded with the bank. In the present case, mandate is

available for operation of the locker by either of them. However, the mandate can be

revoked by any one of the joint hirers. Here, Mr. Sharma (one of the hirer) has given

the notice to revoke the earlier mandate of operation (E or S). In such situation, only

joint operation of the locker can be permitted. Bank should also make effort to

persuade them to surrender this locker and get separate lockers allotted in their sole

name to prevent any further complication or litigation.

37'. A' & 'B' are having a jointly operated locker. 'A' has nominated 'X' and 'B' has

nominated 'Y'. Both of them die in a accident.

ANS: In such eventuality, access of the locker will be given jointly to the nominees X

and Y.

However, certain precautions will be exercised before handing over the contents to

them. These are:

i) Genuineness of the death certificate will be ensured.

ii) Due care and caution will be exercised in establishing the identity of the

nominees.

iii) Effort will be made to find out if there is any order from a competent court

restraining the branch from giving access to the locker of the deceased

iv) Nominees will be clearly explained that the access to the contents of locker has

been

given to them as trustee of the legal heirs of the deceased and such access to them

will not affect the claim/rights of the legal heirs of the deceased.

38.What actions you will take in case a locker is not operated for more than a year

even if the rent is paid regularly and the locker hirer is classified under High Risk

category? Have you acted differently in case the locker hirer would have been

classified under Medium Risk?

ANS: Where the locker has remained unoperated for more than 1 year for a higher

risk

category, following actions will be taken:

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i) Efforts will be made to immediately contact the locker hirer. He/she will be advised

to either operate the locker or surrender it.

ii) Locker hirer will be asked to give in writing, the reasons why he/she did not

operate the locker for such a long period.

iii) In case the locker hirer has some genuine reasons as in the case of NRIs or

persons who are out of town due to a transferable job etc., branch may allow the

locker hirer to continue with the locker.

iv) In case the locker hirer does not respond nor operate the locker, branch should

consider the opening of the locker after giving due notice to the locker hirer.

In case of medium risk category customer, the above mentioned actions will be

initiated if the locker has remained unoperated for more than 3 years.

39.Mr. Prabhat Kumar has recently been promoted to MMGS-III. He has been given

assignment of Manager (Branch Operation) of a District Head Quarter Branch. In his

previous assignment, he was handling Service Desk at ITS Department of his Circle.

Few weeks after taking charge of his new assignment, he finds that there are large

number of accounts in which there is no transaction for more than a year and

balances are also more tha Rs 5000/-. In many cases, balances are more than Rs

25000/- also. He is not aware of the guidelines in this regard. If you are heading

that Branch, what actions you will suggest to him?

ANS:

i) A letter in prescribed format should be sent to the all such accountholders so that

reason for non operation can be ascertained.

ii) In case it is due to shifting of the locality, they may be asked to provide details of

their new accounts to which the balance in the existing account could be

transferred.

iii) In case of inoperative accounts having balance more than Rs.25,000/- and the

letter sent to them is returned undelivered, they may immediately be put on enquiry

to find out their whereabouts or their legal heirs in case of deceased account.

iv) In case, they are not traceable, person(s) who has/have introduced the account

holder should be contacted.

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v) Contacting the employer or any other person whose details are available with the

Bank may also be considered.

vi) Account holder may also be contacted telephonically if the telephone/cell number

is available.

vii) In case of non-resident accounts, account holders may also be contacted

through e-mail and confirmations be obtained.

viii) The following three reports are being generated by the CDC Belapur for Branch

use.

a) Report on accounts having nil transaction for over a period of one year - on 31st

December.

b) 'Inoperative_Accounts.txt': Customer wise list of in-operative accounts - on 30th

June and 31st December.

c) 'Intimation forAccountBecomeInoperative-depd0000' : intimation letters

addressed to the

customers whose accounts are going to be marked "INOPRTV" on ensuing 31st

March by the system.

We can make good use of these reports to persuade in-operative account holders for

timely resumption of operations.

40. Assume that you are the branch manager of an Industrial Estate branch. Mr.

Ravi Kiran

CEO of M/s Good luck Industries with around 500 employees of various cadres is

approaching you with a request to open salary accounts at your branch for his

employees.

The employee profile of the company is as under:

100 employees are of executive cadre drawing monthly salary of Rs.50000/- and

above.

100 employees are of supervisory cadre drawing monthly salary of Rs.25000/- to

Rs.35000/-

Remaining are regular employees earning monthly salary of Rs.7000/- to

Rs.10000/-. The current account of M/s Good luck Industries is already maintained

at your branch. Some of the low salaried employees are not in favour of opening SB

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accounts. How will you help the customer and what are the various alternatives

available before you?

ANS: Employees of supervisory cadre & executive cadre should be offered Silver & Diamond variant of Corporate Salary Package respectively. A host of value added features are available under these variants of CSP such as VISA/Master Gold Card, Free Inter core transfer transactions, Free Unlimited SB Cheques, Free Multi City

Cheques, etc. Mr. Ravi Kiran, CEO should be offered Platinum variant of CSP. He should be accorded status of 'Vishesh' customer. SBI Platinum Card should also be issued. Employees who are not willing to open SB Accounts should be issued e-Z pay

card subject to fulfillment of the following conditions:

i) Limit per card for loading / reloading not to exceed Rs. 50,000/- per month

ii) An undertaking and indemnity to be obtained from the company to the effect that the cards are for genuine payments to the employees / agents etc., and will be delivered to them against their acknowledgement.

iii) Complete KYC requirements of individual card holders are to be obtained and kept on record by the company.

iv. Acknowledgment from the card holder to be obtained and submitted to branch to be kept in record. All the account will be opened thru online application opening mode.

41. Shri Ramesh Kumar, an SB account customer of your branch approaches you with an

ATM related issue. He says that he purchased jewels from a famous jewelry shop using his ATM card. His account was twice debited for the amount of purchase. The

POS machine used by the shop belongs to some other Bank. The vendor said that his account was credited only once. Now the customer wants refund of the amount debited erroneously. How will you deal with the situation?

ANS: Shri Ramesh Kumar will be asked to provide his ATM Card No or A/c No. His complaint will be lodged in centralized Complaint Management System (CMS) application (URL https:// 10.0.22.170:8070/CMS). A ticket number will be generated acknowledgement of complaint will be sent to the customer by e-mail / SMS. Since

the complaint relates to erroneous debit at POS, it will be handled by ATM Switch Centre and the customer's Account will be credited directly In case of delay in settlement of complaint beyond 7 days, Shri Arvind Kumar will be compensated with

Rs 100/- per day from 7th Day.

42. A valued customer of your branch reports that he has forgotten the PIN number of his ATM. How will you help him?

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ANS: From 01.07.10, requests for generation of duplicate PIN can be registered in CMS by the current branch of the customer or any other branch. Customers can also

lodge requests for duplicate PIN through CMS via Contact Centre. A ticket number will be generated in CMS. It will always start from "AT99999". Current branch of the customer can track the Re-PIN request anytime in CMS or ATM WEB. If request is

lodged by another branch, they too can track it in ATM WEB. Acknowledgement is sent to the customer when their mobile number /email id are entered. Regenerated PIN will be dispatched to the current branch only after dispatch of PIN, the details

are sent to customers, where mobile number is available at Core data, through SMS. The stipulated Service charge will also be recovered. Moreover a facility for enabling

retail internet banking users to generate ATM PIN online either by using OTP or profile password has been rolled out. Retail INB users having transaction accounts with single mode of operation can avail this facility by logging-in to retail INB. The

facility is available under e-services module.

43.The hirer of a locker operated the locker but forgot to lock it after the operation. The locker official observed the same at the end of the day. What steps are to be taken to protect the bank's interest?

Ans:An inventory of the contents should be taken; it is to be witnessed by two officers of the bank preferably joint custodians; it is preferable to have it witnessed by a valued customer of the bank. The contents may be kept in a sealed packet as a

safe deposit item in the custody of BM/ Acct. The customer has to be contacted for taking delivery. The matter should be explained to the locker holder in detail as also put on record; the contents have to be delivered against his unconditional

acknowledgement of the entire contents. The customer would be requested to be cautious in operating the locker in future. The Controlling Authority should be advised.

44.Mr. "X" raised a loan of 20,000/- at your Branch against the pledge of gold ornament. On his failing to honour commitment regarding payment, in spite of

repeated reminders, the ornaments were auctioned and after applying proceeds in satisfaction of the dues to the bank, the balance was remitted to him by means of a

banker's cheque / pay order. Mr. "X" now moves to the court with a plea that the gold ornaments represented only a collateral security , the primary security being the demand promissory note and the bank had no authority to dispose of the

ornaments in the manner it has done.

Ans:If the gold ornaments were auctioned after giving a reasonable time to Mr. "X" for such a notice is mandatory, "X"s plea cannot be sustained. In this case, the contract Act. 1872, Sec.176 provides, "if the pawnor make default in payment of the debt , or performance at the stipulated time of the promise , in respect of which the

goods were pledged , the pawnee may brin g a suit against the pawn or upon the debt or promise and retain the goods pledged as a collateral security or he may sell the things pledged on giving the pawnor reasonable notice of the sale".

45. Sri Khetri is Banks's valued customer holding deposits to the tune of Rs.25 lacs. A cheque for Rs.10,000/ issued by him was returned for the reason "insufficient

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funds". The customer brings to the notice of the bank that there has been a wrong debit of Rs.300 towards charges. Also, the payee has also been charged Rs.300 by

his bank. The erroneous debit act has resulted in shortfall of requisite balance. He informs the bank that his reputation has been affected arising out of such negligence.

a) What is the position of the bank?

b) What action has to be initiated by the bank to set right the position?

Ans:The bank would be liable for the unauthorized debit and losses sustained by the customer.

a) The bank has to immediately verify whether the debit in question is raised in the customer's account is erroneous. As bank has no authority to raise debit in the customer's account.

b) The bank should arrange for the reversal of such wrong entry and afford credit of all ineligible recovery made earlier without further delay.

The Bank official should meet the customer preferably at his place and regret for the incident and also extend assurance against recurrence in future. The employee

involved in the process must be counselled and also be cautioned and suggested to go for enhancing job knowledge preferably through e-learning.

46.A person, Mr shyambabu want to keep a small sum of amount by opening a savings bank account. He is a running a very small business in his village. He is not having any ID proof with him. The CRO Mr. Ranbir has refused to open any savings

bank account without having ID proof. As a Branch Head how can you help poor man? Discus.

Ans : a) The liberalised KYC guidelines provide for opening of small deposit accounts for

those person who intend to hold balances not exceeding Rs. 50,000/ in all their account taken together and total credit in all accounts do not exceed Rs. 1 lac in a year. In such cases, if the person is not able to produce KYC documents the bank

can accede to his request: a) the person will produce a self attested photograph and must sign /put thumb impression in front of the bank official.

b) Further, the bank can provide ATM card/ Cheque book depending upon the customer

profile. The customer is allowed to have 4 withdrawals including ATM withdrawals in a month. The account will be reviewed after one year if the account holder produces

valid ID proof the same will be upgraded. Else another 12 month will be allowed.

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The CRO Mr Ranbir will be advised to go through the liberalised KYC guide line and relevant circular for opening of small deposit account also a staff meeting will be

convened to spread awareness and to ease the hardship to such category of persons, which will help financial inclusion initiative.

47. The Bank has erroneously credited Rs. 10,000/ relating to A's Account to B's A/c .

Subsequently B closed the account and has drawn the entire amount available in the account including the wrongly credited one. A has now claimed the amount. Discuss the situation.

Ans:Any credit afforded wrongly must be returned along with interest as this leads to UNJUST enrichment as per Section 72 of Contract Act,1872.

In the cited case the relative vouchers/records etc has to be scrutinized and the bank will make good the amount to A's account without delay and demur.

However, the bank can legally proceed against B to recover the dues . The staff concerned must be made accountable for such act.

48. A valued customer has approached you and informs that a cheque received by him for

repayment of debt by his client MR Chatur has returned with remark "Drawer's signature differs". He smells some mischief has been played by Mr Chatur while the later handed over the cheque. As a Branch Manager you advise suitably to your customer including legal remedy if any.

Ans : When a cheque is given in discharge of a debt or other liability is returned by the bank either for the reason 'insufficient fund, A/c closed, Stop payment of

cheque, SIGNATURE MISMATCH etc then it is deemed as a criminal offence under Section 138 of NI Act,1881 on the part of the drawer of the cheque. The customer will be advised as: 1)To contact Mr Chatur to settle amicably the liability and take

return of the cheque in question. 2) if the above act is proven to be futile then the payee should make a demand for the payment of the said amount, in writing, to the

drawer within 30 days of receipt of information regarding the return of the cheque. If the drawer fails to honor the payment of the amount to the payee within 15 days of the receipt of the notice, the cause of action arises for the payee to file a case U/s

138 of NI Act in the appropriate court by appointing a lawyer.

49.A customer of your branch approaches you and narrates the loss of ATM card along with her purse in the market. She fears that the PIN of the card might have been written in the cover. She urges to stop operation of the account and the card. As a branch Manager what is action.

Ans:The genuineness of the claim and identity of the the lady will be established if found

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satisfactory, then a written request would be asked for. The account will be hold and the card can be blocked through INB branch interface. Also the customer will be

educated not to record the PIN in the card envelope etc but to memorize the same. Further, other means to blocked the card viz: through contact centre, sending SMS to 567676 from the registered mobile of the customer etc will be explained to her.

She may be asked to apply for new card. The suitable charges to the above effect will be recovered.

50. Your branch is a currency chest branch and situated in the heart of the town. There is acute shortage of coin and small denominations notes in the locality. The local news paper also gives adverse publicity against all the bank branch as they are

not issuing coins, notes of small denominations and fresh notes. Your controller has received a communication from the head office to this effect and ask for compliance.

As a Branch Head what are your action points, discuss

Ans:Any adverse publicity will affect the image of our Bank as well as RBI since Currency chest is there. Therefore following action point would be taken in consultation with RBO:

a. I will arrange a meeting with the local chamber of commerce and invite their suggestion for distribution of coin/notes etc.

b. A coin and soiled note exchange mela will be arranged on the weekly market and necessary permission will be accorded from RBI and controller. Soiled note remittance will be sent to RBI with a request for adequate supply of coin. The

customer meeting will be arranged at regular intervals, the local reporters, office bearers of the Chamber of Commerce, Senior Citizens, eminent personality will be invited. Also , one demo session of alternative payment mode i.e POS-MAB,MBS,INB

will be arranged in the meeting and the USPs will be explained by inviting resource persons/Trainers from the SBLC. I will involve all the staff members in the above process and will act for the image building of the Bank. The controllers will be

intimated of all the developments.

51.Mr. Uttar and Dakhin, sons of Surya, on the demise of their father approached the bank to release the land documents mortgaged to bank due to guarantee of loan to the tune of Rs 40 lakh (CC and TL) availed by Sri Chandra. What are the procedures to be followed?

Ans. : Death of Guarantor: Procedure to be followed:-

The following guidelines are to be observed while handling the issues involving death of guarantor(s):-

a) Any proposal seeking release / substitution of personal guarantees shall invariably contain the specific details of alternate guarantee / security proposed to be offered to protect Bank's interest.

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b) In the event of death of a guarantor, the question of releasing the personal guarantee does not arise. In accordance with law, unless the legal heirs do not get

released, the Bank has every right to proceed against them. The legal heirs of the guarantor are however, liable only to the extent of the estate inherited by them form the deceased guarantor and unless they undertake personal obligation in their

personal capacities by executing a separate deed of guarantee or agreement, they cannot be made personally liable.

c) In case we need to bind the legal heirs personally into the guarantee fresh Deed of Guarantee should be obtained from the Legal Heirs of the deceased guarantor on the Bank's specified standard formats with the following clause duly incorporated :-

'And whereas Bank has agreed to continue the credit facilities now being enjoyed by theborrower at our request and subject to execution of a guarantee by us.'

d) In case legal heirs do not execute guarantee and do not undertake personal obligations as a guar-antor, they would still continue to remain liable to the Bank only to the extent of the estate inherited by them from the deceased guarantor.

e) In case where the legal heirs of the deceased guarantor are unwilling to execute guarantee for the loan/s, the borrower shall be advised immediately for substitution of such guarantee/mortgaged property without any dilution in the existing value of

the security.

f) In respect of NPA accounts and suit filed accounts, the operating units should immediately implead the legal heirs in the pending proceedings within 90 days from the death of the guarantor or the date on which Bank becomes aware of the death of the guarantor. Where death happens before the initia-tion of legal proceedings,

legal heirs shall also be impleaded as defendants in the suit or DRT proceedings as the case may be.

g) In case of running accounts, immediately after the operating unit becomes aware of the death of a guarantor, a quick decision needs to be taken as to whether their guarantee should be substituted or legal heirs should create separate guarantee, to

avoid a possible invocation of limitation being raised by the legal heirs of the deceased guarantor.

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Business Communication

1. A term deposit receipt favoring A for Rs35,000/- is due for payment next month. A has nominated his adopted son B to receive the deposit in case of his death. You have received a notice from the advocate of one X claiming to be the brother of A.

The Notice advises you not to pay the amount to B as the deposit belongs to the Joint Hindu Family of A. Please write a suitable letter to the advocate.

(Branch Standard Letter Head preferably in Bilingual or Trilingual)

ADDRESS OF BRANCH

______________

______________

______________

Branch Letter No: 31/2017-1 Date: 18.06.2017

Dear Sir,

TERM DEPOSIT FOR RS 35,000/- STANDING IN THE NAME OF SHRI.______:

With reference to your letter No. 25 dated 12.06.2017 we have to advise that, we have been advised by Sri B, the nominee of the captioned deposit that the depositor

A has since died; and has claimed the payment of the proceeds of the deposit on the due date.

2. As you know, under section 45ZA of the Banking regulation Act, the bank has to make payment of the deposit to the nominee. The Fixed deposit stands in the individual name of the depositor who had made a valid nomination under the above

section. The claim made by your client that the deposit belongs to the joint family and not to the deceased in his individual capacity is a matter to be settled between

him and the nominee.

3. The bank is, under an obligation to pay the amount to the nominee. Unless therefore an order issued by a competent court restraining payment to Sri B is served on us within 15 days here of, we will pay the amount to Sri B immediately on the expiry of the said period of 15 days without any further reference to you.

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Yours sincerely,

sd/-

BRANCH MANAGER.

(NAME OF THE OFFICIAL, DESIGNATION, CONTACT NO)

2. Write an appreciation letter to a Branch under your control (as a Regional Manager), congratulating them for their success in migrating more than 80% of their customers to Alternate Channels

ADDRESS OF REGIONAL OFFICE IN REGIONAL LANGUAGE HINDI ENGLISH

The Branch Manager

State Bank of India

_______________Branch

RBO/HR Letter No:631/2017-18 Date: 18.06.2017

Dear Sir,

CONGRATULATIONS SHIFTING CUSTOMER TO ALTERNATE CHANNEL

I congratulate you and your team members and put on record my appreciation on account of migrating 89% of your customer to Any Time/Digital Channels, which has successful in decluttering the branch.

2. Your branch became the first branch in the circle to achieve this excellent performance.

3. Please convey my congratulation to your team members. I trust you will lead your team and continue your efforts to achieve more and more such performances in the days to come.

With best wishes

Yours faithfully,

REGIONAL MANAGER.


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3. You are the Branch Manager of the Branch situated in an agricultural area where sugarcane is predominately cultivated. Recently, a new sugar factory is opened in

the area. Write a letter to the company for sourcing their business, explaining the relevant schemes and details.

ADDRESS OF BRANCH IN REGIONAL LANGUAGE HINDI ENGLISH

To

_____________.

Sugar & Co. …

Branch Letter No: 86/2017-18 Date: 15.06.2017

Dear Sir,

CONTACT FORMING AND FINANCIAL ASSISTANCE TO THE SUGERCANE FARMERS:

It is our pleasure to have a sugar factory in this area. We take this opportunity to appreciate your efforts in completing the commissioning of such a factory within short span of time. We would like to advise you the following points for your information:

2. We serve more than 2500 Agricultural borrower who have availed loans for different agricultural activities; most of the borrowers are progressive farmers. Some

of the farmers are facing problems in marketing their produce due to lack of any support.

3. You may be aware that sugarcane is predominately cultivated in the area and most of our borrowers have availed finance for it. Therefore, we request you to spare your valuable time to discuss the matter like contract farming etc. in details,

which will surely boost mutual business interest apart from serving the farmers.

4. We will be visiting your office once we receive the communication about the date and time Thanking you in anticipation.

Yours sincerely,

Sd/-

BRANCH MANAGER.


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4. Write an appreciation letter to a Branch under your control (as a Regional Manager), congratulating them for their success in migrating more than 80% of their

customers to Alternate Channels.

ADDRESS OF REGIONAL OFFICE IN REGIONAL LANGUAGE HINDI ENGLISH

To

The Branch Manager

State Bank of India

…... ......... . Branch

RBO/HR Letter No: 31/2017-18 Date: 18.00.0000

Madam/Dear Sir, (Then salutation as Madam or Dear Sir as the case may be)

CONGRATULATION SHIFTING CUSTOMER TO ALTERNATE CHANNEL

I congratulate you and your team members and put on record my appreciation on account of shifting 80% of your customer to Alternate Channel. Because of this

effort on your part, your branch became the first branch in the circle to achieve this target. Please convey my congratulation to your team members.

I trust you will lead your team and continue your efforts to achieve better results in future. With best wishes

Yours faithfully,

Regional Manager.


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5. A Term deposit favoring Mr. Deceased for Rs.100,000/- is due for payment next weak. The deposit account has nomination in favor of Mr. Nominee. Today, you

have received a notice from an advocate of Mr. Claimant, claiming to be the son of the deceased. The notice advises you to stop payment to the nominee, as the deposit belongs to the Joint Hindu Family of the deceased. Please write a suitable

reply.

State Bank of India

Branch: Ref.No. MIS Date:

To

Shri …………….

Advocate, _____________________

_____________________

Dear Sir,

TERM DEPOSIT IN THE NAME OF Mr. DECEASED

With reference to your letter dated …….., we have to advise as under. We have received an application for claiming the deceased term deposit by Mr. Nominee, who is the nominee of the captioned deposit that the depositor Mr. Deceased has expired

on date……………

2. In terms of Nomination Rule under Section 45ZA of the Banking Regulation Act, the Bank has to make payment of the deposit to the nominee. On our verification of the records, we confirm that the fixed deposit stands in the individual name of the depositor who had made a valid nomination under the above Section. According to

your notice on behalf of your client, the deposit belongs to the joint family and not to the deceased in his individual capacity is a matter to be settled between him and the nominee.

3. The Bank is not part with the said dispute. The Bank is under an obligation to pay the amount to the nominee. Unless therefore an order issued by a competent court

restraining payment to the nominee is served on us. In view of the above we will pay to Mr. Nominee without any further reference to you.

Yours sincerely,

Branch Manager.


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6. You are a Br. Manager of Scale –III incumbency reported recently. You found that all old obsolete stationary, computers and furniture are lying in the second floor. The

second floor of the premises is an abandon place since years together. It is not needed at all considering even the future requirement. The book values of these assets are zero. You are paying monthly rent of Rs.50000/- considering the space.

The space can be utilized by CPC‘s or any administrative office purpose. You also find that an NGO intends to conduct free computer education programme in a village serviced by the bank. NGO is ready to use the computers and furniture by convert

them in such a way they can use it. Please write a letter to the appropriate authority recommending donating the old computers and furniture and also inform that the

space may be better utilized.

State Bank of India Branch

Ref.ZO Date:

The Asst. General Manager,

State Bank of India,

Region:

Zonal Office

Dear Sir/Madam,

DISPOSAL OF OBSOLETE FIXED ASSETS

We found that all old obsolete stationary, computers and furniture are lying in the second floor. The book value of these assets is zero The second floor of the premises is an abandoned place since years together. It is not needed at all

considering even the future requirement. We are paying monthly rent of Rs.50000/- considering the space.

2. The space can be utilized by CPC‘s or any administrative office purpose. We find that an NGO intends to conduct free computer education programme in a village serviced by the bank. NGO is ready to use the computers and furniture by

converting them for the proper use.

3. In view of the above, we may be permitted to donate the obsolete unused computers and furniture and sell the stationary to the bank approved vendor. The space available in the second floor maybe utilized effectively by the Bank for housing

Clearing CPC or make use of the same in some other way.

Yours faithfully,

Branch Manager.

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7. You are a Branch manager of an Army campus branch having one officer and two clerks and two sub-staffs out of which one is PTS. 400 New jawans have joined the Army. The Army Commander has requested you to open 400 accounts within a

week. Please write a letter to your controller seeking their help.

BRANCH LETTER HEAD

BRANCH ADDRESS IN...

REGIONAL LAGUAGE HINDI ENGLISH______

To

The Regional Manager

State Bank of India

Region xx

Branch Letter No. 31/2013-14 Date: 18.06.2013

Madam/Dear Sir,

OPENING OF SALARY ACCOUNTS FOR

THE ARMY PERSONNEL IN MARATHA REGIMENT

The officers and jawans of the above Regiment have been having their accounts and dealing with us since the establishment of the branch 40 years ago. They are our very valuable customers and are happy with our services. The Personnel Dept of the Regiment has advised me that about 400 officers and Cadets are to join the

Regiment in the next fortnight. They have requested me to open Salary Account for them so that salary would be credited to their account with us from the first month of their joining the Army. I feel it is a good opportunity for us to strengthen our

relationship with the Army at this centre. Also, benefits like CASA deposits, life-long relationship, marketing of Defence Salary Package and marketing opportunity for

other products will result from this.

I propose to follow the under-noted procedure in this case:

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a) The Accounts will be opened under Defence Salary Package-Army Scheme.

b) The KYC formalities will be completed.

c) I propose to depute 2 staff members to the Army Hqs for completing the formalities.

d) All accounts will be opened with non-personalised DSP Army Welcome Kits.

e) I have already uploaded a request for the personalised ATM Card with Army design.

f) The personal Number will be noted.

g) To complete the task in time, I propose to use the Bulk a/c opening software for making entries and then upload it.

h) I also propose to create investment portfolio officer desk in the branch to give them a one stop platform for providing the services.

The branch does not have a person who is familiar with the use of bulk a/c opening software. Also, two of the staff will go to the Army HQ to complete the account

opening formalities. I need support of 2 Assistants (one well-versed in the use of bulk account opening software) for a period of 8 days to complete the entire work related to this special task. I request that two suitable staff may be deputed to the

branch for this purpose.

Yours faithfully,

(sd) xx

Branch Manager


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8. You are a desk officer at the RBO requested by Regional Manager, to prepare an Internal Note for purchase of sweet packets on account of Bank day celebrations at

branches as well as at RBO level.

NOTE :

REGIONAL MANAGER :

CHIEF MANAGER (CRM) : Ref.No. Note/1/18-19 Date :

DISTRIBUTION OF SWEETS ON THE EVE OF BANK DAY CELEBRATIONS

On the eve of Bank day celebrations and as per the LHO instructions, we propose to distribute the sweet packets to each and every staff members worth Rs.250/- per head.

2. We propose to purchase the sweet packets by the branches and RBO and RASMECC heads for the distribution to the staff members on approval.

3. Submitted for the approval, please.

DESK OFFICER (PLG)


No. of Staff Amount

RBO Staff 15 3750

Branch Staff (25 ) 150 37500

RASMECC 15 3750

TOTAL 180 45000/-

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9. Write a MEMO letter to a Branch staff under your control (as a Branch Manager), for unauthorized absence

ADDRESS OF BRANCH IN REGIONAL LANGUAGE HINDI ENGLISH

MEMO :

Mr.___________

______________

…... ......... .

REGISTERED WITH ACK.

RBO/HR Letter No: 31/2017-18 Date: 18.00.0000

Madam/Dear Sir, (Then salutation as Madam or Dear Sir as the case may be)

UNAUTHORISED ABSENCE FROM DUTY

It is observed that you are absenting from duty unauthorisedly since……… .

2. You are, therefore, advised to report for duty within 3 days of the receipt of this Memorandum and explain the reasons for your absence.

Yours faithfully,

BRANCH MANAGER.


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General Guidelines for preparation of

Essays on Banking Related Topics( 250 words)

( For evaluating comprehension skill and communication skill)

1. First select the one topic ( as we have to write only one out of three topics )

which you are confident and write bullet points on Rough Work Sheet and

then give numbering priority wise, so that flow of Essay is well written.

2. How you understood regarding the topic to be reflected in the entire Essay.

3. Do not concentrate only on one or two points, try to write the important

points in the given space. Strictly restrict writing only to the space provided

as this will be considered for scoring.

4. Try to see your handwriting is legible and avoid overwriting.

5. Do not change black / blue pen during the essay writing, write the entire

content with the same pen.

6. Avoid spelling mistakes and ensure clarity of thought.

7. Abbreviations if any please expand in the essay.

8. Keep first 4 lines for introduction / objective and last 4 lines for conclusion. In

the remaining lines, write the contents in a logical flow.

9. The essay should give an overall impression about your command over

comprehension and communication skill.

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1.ATAL PENSION YOJANA ( APY)

The objective of the scheme is to provide affordable and universal access to

essential social security protection. This scheme would address old age income

security needs and mitigate the longevity risk. The scheme is a hybrid pension plan

with a combination of defined contribution as well as defined benefit features.

A Pension provides people with a monthly income when they are no longer earning.

Need for Pension:

Decreased income earning potential with age.

The rise of nuclear family-Migration of earning members.

Rise in cost of living.

Increased longevity.

Assured monthly income ensures dignified life in old age.

APY Scheme Details:-

Eligibility: Any citizen of India in the age group of 18-40 years (organised &

unorganised) who has a savings bank account / post office savings bank account.

Pension Payment on attaining Super-annuation:

The guaranteed minimum pension for the subscriber ranging between Rs. 1,000/- or

Rs 2,000/- or Rs 3,000/- or Rs 4,000/- or Rs.5,000/- would be available on attaining

the age of 60 years, depending on the contributions by the subscriber.

KYC document: Aadhaar would be the recommended KYC document, however, it

is not mandatory at the time of enrolment.

Periodicity of subscription: Monthly / quarterly / half-yearly contribution must be

deposited on the first date of month/quarter/half year in the saving bank account.

Tax benefit: Contributions upto Rs 50,000 per annum will also be eligible for the

tax benefits under section 80 CCD of IT act, which is over and above the 1.50 lakh

80 C limit.

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Nomination : It is mandatory to provide nominee details in APY account.

Incentive to Bank : Remuneration for the Bank is Rs.120 per new subscriber

registration.

Grievances Redressal : As per the Regulations, every grievance raised by the

subscriber should be disposed-off within a period of thirty days of its receipt.

APY is also one of the part of financial inclusion as social security to unorganised

sector will eradicate the poverty and social upliftment of the poor people.

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2. DIGITAL BANKING

Digital Banking: Banking services offered based on digital technology aided

understanding of customer preferences, behaviour etc., as also, bank’s ability to link

and synthesise services for building a superior customer experience.

Benefits of digital banking:-

1. Technology reduces the cost of operations and servicing for the bank, and the

reduction can, thereby, be passed on to the customer.

2. Technology also reduces the delivery time of the products/ services.

3. Digital channel is more customer friendly in terms of saving their efforts, cost

and time.

4. This will enable the Bank to, not only, bring such customers into their fold but

also have a similar effect on the customer’s friends and peers.

5. Customer attitudes and behaviour are evolving rapidly.

6. Digital Banking is preferred worldwide.

7. Need not carry cash.

8. Higher balances in the account resulting in higher interest on deposits.

9. The time saved results in lower cost and higher productivity as time saved

can be gainfully utilized.

Internet Banking Products:Retail Internet Banking, Corporate Internet Banking &

Yono by SBI.

Mobile Applications: SBI Anywhere Personal, Anywhere Corporate.

SBI MINGLE, State Bank Samadhan, State Bank NoQueue App, SBI Quick,

State Bank App Kart, SBI Digi Voucher, SBI Finder, m-Visa, SBI m-Cash, Secure

OTP, etc.,

Mobile Wallets: Bhim SBI Pay, Bhim- aadhaar- SBI, SBI Mobi Cash, etc.,

Other Technology services :

ATM, Cash Deposit Machine (CDM/Recycler), Instant Money Transfer, USSD,

SBI e-Pay, State Bank Collect, SBI FASTag, POS, GCC, GRC, Bar Code Pass Book

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Printer (SWAYAM ), Queue Management System (QMS), Electronic Cheque Drop

Machine (ECDM), prepaid cards, etc.,

Digital Banking will mitigate the issues of fake currency, artificial inflation of the

commodity prices. Customer Awareness meets to be conducted to prevent frauds in

digital banking.

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3. FINANCIAL INCLUSION

Financial inclusion has been defined as the delivery of Banking services, at an

affordable cost to the vast sections of the disadvantaged and the down trodden

groups, especially in the rural areas.

Access to savings, loans, remittance and Insurance enlarge livelihood opportunity

and empowers poor. Limited access in rural/unorganised sections a major constraint

to growth.

Products:

Basic Saving Bank Deposit - Pradhan Mantri Jan-Dhan Yojana

Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY)

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Atal Pension Yojana(APY)

SBI Tiny Savings Bank Account

SBI Tiny Recurring Deposit Account

SBI Tiny (Special) Account

SBI Tiny Special Term Deposit

Savings Bank cum Overdraft - Mudra Loan upto Rs.5000/- in PMJDY accounts

Immediate Payment System( IMPS) in Kiosk Banking

Issuance of Rupay Debit Card

The Aadhaar Enabled Payment System (AEPS) is an interoperable payment platform

offered by NPCI to Banks which uses Aadhaar number and online biometric

authentication from UIDAI for conducting financial transactions at BC CSP outlets.

Benefits for Customer:

1.Easy acess at convenient time to banking services

2.Affordable cost & less documentation in opening accounts

3.Time and money saved

4.Facility of remittance, receiving subsidy, savings products

5.Pass book, ATM card available

6.Benefits of accidental Insurance

7.Small credit to meet exigencies available

https://10.189.32.77/RBU/apy.html

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Benefits for Bank:

1.Increase in CASA balance

2.Fulfilling Govt/RBI mandates

3.Social responsibility as an organization

4. Using of CSP/ BC channel to De-congestion in bank branches

Financial Inclusion will the most effective way to eradicate the poverty and social

upliftment of the poor people. Customer Awareness meets to be conducted to

prevent frauds as Financial Inclusion customers are less educated.

Advantages of PoS or BHIM Aadhar SBI

"Business of providing the infrastructure for acceptance of payments by

swiping of card or by Aadhar authentication" at a merchant location is

referred to as Merchant Acquiring Business.

State Bank of India has been offering this Acquiring services across the country and

has grown to over 3.20 lakh PoS /EDC (Electronic Data Capture) terminals spread

over 1,500 locations and cater to majority of the merchant categories

Advantages for Customer

Need not carry cash.

Higher balances in the account resulting in higher interest on deposits.

Saves time and money in visiting bank Branch / ATM to withdraw money and

spend the same at merchant outlet.

The time saved results in lower cost and higher productivity as time saved

can be gainfully utilized.

Earning of Reward Points.

Advantages for Merchant

No Cash handling.

Increased Sales.

Increased Customer Stickiness.

Loyalty Rewards for Customers.

No Risk of Forged Notes.

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Acquiring Bank

The cost of transaction at Branch or ATM is directed to PoS resulting in

reduced costs.

The transactions on the PoS gets settled to the merchants SBI Current

Account, leading to higher CASA earnings and fee based income.

Increased Visibility for the Bank.

De-cluttering of branches and ATMs.

Better Cash Flow management in CC accounts.

Arrest the flight of business to other banks due to not offering the facility.

An Active PoS helps in maintaining Merchant Relationship, improving

merchants loyalty and checks diversion of funds in case of Credit limits.

A SBI Debit Card swiped on SBI PoS helps in keeping the funds within the

Bank.

It will mitigate the issues of fake currency, artificial inflation of the commodity

prices. Customer Awareness meets to be conducted to mitigate apprehension

and prevent frauds in this area.

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4. PREVENTIVE VIGILANCE-OBJECTIVES OF PREVENTIVE VIGILANCE

- To enhance level of managerial efficiency and effectiveness in the

organization

- Minimizing the incidence of frauds, irregularities, lapses etc.

- Meticulous compliance of systems & procedures

- Formulating remedial measures and initiating corrective action

- Preventive vigilance works against any possible abuse/misuse of powers and

exercise of discretion which is to the detriment of the organization.

- Preventive Vigilance is “ an integral part of the managerial function”.

- Fraud Prevention by PREVENTIVE VIGILANCE is the most cost-effective when

compared to “corrective maintenance” and “damage control”.

COMMITTEES AT BRANCHES

Preventive vigilance activity is required to be in operation irrespective of branch size.

However, the Bank has decided that Preventive Vigilance Committee (PVCs) is

mandatory at branches with staff strength of twenty or more.

CONSTITUTION

The Preventive Vigilance Committees should be formed with two to three members

of staff (both Supervising and Award) from different Divisions / sections, giving

representation to Deposits, Advances, International Banking, Cash, and Accounts

wings.

Head of the Branch and / or Branch Management Committees, if constituted, should

oversee the functioning of Preventive Vigilance Committees.

PVC meetings :-

Meet at least once a quarter and deliberate on issues.

Act as a catalyst in carrying out Preventive Vigilance activities.

Identify areas of vulnerability and discuss and recommend methods to

improve the position.

Help in identifying unscrupulous elements.

Educate colleagues on the need to observe the laid down procedures and pit

falls of non-observation thereof.

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To prevent frauds, there by improving Bank’s image, all our Bank’s staff to know

the preventive vigilance guidelines and to follow it meticulously.

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5. Self Help Group

SHGs inculcate thrift habit among the members by pooling savings of the members

and resort to internal lending to them for meeting the needs of the members both

for production as well as consumption purposes.

SHG- Self Help Group is a voluntary homogenous group of 10 to 20 individuals

from weaker sections, comprising small and marginal farmers, landless labourers

and rural poor engaged in agricultural, allied agricultural activities / small business in

rural areas, having common interest (among other things, in promoting saving habit,

developing self and community assets improving women / weaker section

empowerment etc. SHGs are formed with an emphasis on Self-Help.

Books to be maintained by a SHG.

(i) Minutes Book.

(ii) Savings and Loan Registers.

(iii) Weekly/Fortnightly/Monthly Register.

(iv) Members Pass book.

Benefits for the group members:

o Internal lending is easy among members.

o No need to pay heavy interest rates to money lenders.

o Inculcate thrift habit.

o It helps Financial Inclusion.

o It helps to eradicate poverty.

o All members are getting equal opportunity in lending.

o Collateral free lending is available for group members.

Benefits for the Bank:

1. Less documentation work and time save.

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2. Less efforts to recovery as group members themselves participate in recovery.

3. Encourage women to start income generation activities.

4. Many online portals are also giving platform to sell SHG members products.

For availing, the group should have been in active existence for at least a period of

six months.

DAY-NRLM (Deendayal Antyodaya Yojana - National Rural Livelihoods Mission) has a

provision for interest subvention, to cover the difference between the Lending Rate

of the banks and 7%, on all credit from the banks/ financial institutions availed by

women SHGs, for a maximum of ₹ 3,00,000 per SHG.

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6.INSOLVENCY AND BANKRUPTCY CODE, 2016

The Insolvency and Bankruptcy Code, 2016 ("Code") seeks to significantly overhaul

the existing state of legal regime in relation to insolvency and bankruptcy processes

in India. The Code is being viewed as one of the most significant legislative reform

towards "ease of doing business in India" - one of the main objectives of legislative

and policy reforms by the central government.

The advantage in IBC is that in absence of resolution plan in 270 days(or even

earlier as decided by COC), Corporate Debtor( CD) goes in for automatic liquidation.

The liquidation has to be completed in 2 years including the initial 270 days for the

CIR process.

The Insolvency and Bankruptcy Board of India ("IBBI") has been established under

the Code as the primary regulatory authority having wide powers to regulate the

Insolvency Professional Agencies, Insolvency Professionals and Information Utilities

constituted under the Code.

Adjudicating Authority :

As per the Code, the National Company Law Tribunal ("NCLT") is the adjudicating

authority for the insolvency matters concerning corporates, LLPs and other limited

liability entities incorporated under any law in force.

The Debt Recovery Tribunal ("DRT") is the adjudicating authority for the

bankruptcy of partnerships and individuals.

All appeals against the orders of NCLT and DRT will respectively lie with the National

Company Law Appellate Tribunal ("NCLAT") and the Debt Recovery Appellate

Tribunal ("DRAT") respectively. Lastly, the Supreme Court of India has the

appellate jurisdiction over the NCLAT and DRAT.

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Initiation of the Corporate Insolvency Resolution (CIR)process : The

CIR process under the Code can be triggered in the event a corporate has

committed a default of Rs. 1,00,000 (Rupees One Lac) or more in respect of a debt.

The following can file the application for initiating the CIR process:

i) Financial creditors, ii) Operational creditors, (including Government &

employees/workmen) and iii) Corporate debtor.

IRAC status of accounts under this code:

- NPA including Recalled Assets Accounts: where total dues (including accrued

interest and other charges),

- SMA Accounts: i) Account has been identified as SMA-2, ii) Bank's total

exposure/ outstanding (including NFB limits).

With the help of this code, Bank’s NPA’s will be reduced and profit will increase.

Real Estate (Regulation and Development) Act 2016 (RERA)

Government of India has enacted the Real Estate (Regulation and Development) Act

2016 (RERA) and the same has come into effect w.e.f. 01.05.2017.

Main features of the RERA:

1. RERA applies to all projects both residential & commercial except the

following:

a. Where area of land proposed to be developed does not exceed 500 sq m or

number of apartments proposed to be developed does not exceed 8 inclusive of all

phases.

b. Where promoter has received completion certificate for Real Estate Project prior

to commencement of Act.

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2. Promoter cannot accept a sum more than 10% of the cost from a person

without first entering into agreement for sale and register the agreement for sale,

under any law for the time being in force.

3. Withdrawal is permitted from the separate account, to cover the cost of the

project, in proportion to the percentage of completion of the project after it is

certified by an engineer, an architect and chartered accountant that the withdrawal

is in proportion to the percentage of completion of the project.

Benefits of RERA to property buyers:

o Home buyers will have to pay only for carpet area.

o Developers/promoters will have to disclose project related details.

o The promoter has to deposit minimum 70% of amounts realised for

real estate project from flat buyers, in a separate account to be

maintained in a scheduled bank to cover cost of construction and land

cost and shall be used only for that purpose.

o Prior registration of real estate project with Real Estate Regulatory

Authority is mandatory.

o Developers/promoters have to update project details quarterly on the

RERA website.

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7.RIGHT TO INFORMATION ACT, 2005

Central Information Commission is the apex authority in the RTI structure to oversee

proper implementation of the Act.

A citizen has a right to seek such information from a public authority which is held by the

public authority or which is held under its control. This right includes

i. inspection of works, documents, records.

ii. taking notes, extracts or certified copies of documents or records.

iii. taking certified samples of material.

iv. obtaining information in form of printouts, diskettes, floppies, tapes, video cassettes or in

any other electronic mode or through printouts.

The normal time available for a CPIO to dispose of the application is 30 days from

the date of receipt of the application. If the information sought by the applicant

concerns the life or liberty of a person, the same has to be disposed of within 48

hours of the receipt of the request.

Prescribed Fee: The application shall be accompanied by the requisite fee of Rs.

10.00.

Appeals :

- Any applicant / citizen who does not receive a decision within the time specified or is

aggrieved by the decision of the CPIO may within 30 days from the expiry of such period

or from the receipt of such a decision prefer an appeal.

- The appeal should be disposed of within 30 days of receipt of the appeal.

- In exceptional cases, the Appellate Authority may take 45 days for its disposal.

- However, in cases where disposal of appeal takes more than 30 days, the Appellate

Authority should record in writing the reasons for such deay.

Second Appeal : If the applicant / appellant or the third party is not satisfied with

the decision of the CPIO and the Order of the First Appellate Authority he / she can

prefer a second appeal with the Central information Commission, New Delhi.

Central Information Commission is the apex authority in the RTI structure to oversee

proper implementation of the Act.

Penalty: As per Section. 20(1) of the RTI Act, 2005 every CPIO will be liable for fine of Rs.

250 per day, up to a maximum of Rs. 25,000/.

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8.CKYC- Central Know Your Customer

1. As per Reserve Bank of India guidelines on Central Know Your Customer

Registry (CKYCR), the data (Customer Information, Photograph, KYC

documents) in respect of all account based relationships established by the

Bank are required to be uploaded on CKYCR portal within T+2 days of such

establishment of relationship. Account based relationship includes all types of

deposit accounts, loan accounts, non-fund based accounts like Bank

Guarantee, Letter of Credit, etc.

2. CERSAI (Central Registry of Securitisation Asset Reconstruction and Security

Interest of India) authorized by Government of India as Central KYC Records

Registry for receiving, storing, safeguarding and retrieving the KYC records in

digital form of a “client”.

3. CERSAI generates 14 digit unique CKYC number.

4. Debit is restricted for accounts opened by new customer. New customer

includes customer for deposit accounts as well as loan accounts. Debit not

restricted for customers having CKYC number.

5. Debit in the accounts for new customers will be automatically activated only

after second scrutiny by LCPC.

6. The 3 days count will start only after activation of debit.

7. CKYC implementation applies to all customer acquiring channels.

8. CKYC Dashborad is a web portal available to everyone on SBI Network, where

one can find out the No. of CIF's created, No. of Images Uploaded, No. of

Images rejected etc. wr.t Branches, LCPC, CERSAI in a tabular format.

The URL for accessing the same is :

https://sbickyc.sbi/CKYCDashboard/

The link is also available in SBITIMES -> Useful Link 1 -> CKYC

Dashboard.

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9. Customer Relationship Management

Customer relationship management (CRM) is an approach to managing a company's

interaction with current and potential future customers which tries to analyze data

about customers' history with a company, to improve business relationships with

customers, specifically focusing on customer retention, and ultimately to drive sales

growth.

The important aspects of the CRM approach :

- to identify, acquire and retain customers.

- That compile data from a range of different communication channels, including a

company's website, telephone, email, live chat, marketing materials and social

media.

-The primary goal of customer relationship management systems is to integrate and

automate sales, marketing, and customer support.

Through the CRM approach and the systems used to facilitate CRM, businesses learn

more about their target audiences and how to best cater to their needs.

Sales – Service – Marketing:

CRM gives an Integrated Platform to engage with customers through out the

lifecycle to drive customer centric culture, enhance customer experience and

maximize customer relationship.

Today customers are giving greater value to 'experience' rather than

'products'.

It is critical for all of us to actively listen and engage with them.

CRM will help each member of SBI workforce to be a valued contributor and

stakeholder in SBI and India’s growth journey.

CRM will help to remove challenges related to process delays, reporting overheads,

easy availability of information to make daily work convenient, simpler and smarter.

Steps :

Initiate, Qualify, Process and Fulfill.

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10.YONO- You Only Need One

Yono is an omni channel application (app) i.e. available on mobile phones, tablets,

web portals & CBS under app. With the help of this app customer can open an

account with any branch of SBI and perform non-financial transactions as well which

will de-clutter our branches and branch staff will be able to focus on marketing of

products. It will reduce our cost to income ratio and reimagining banking at SBI with

total digital experience.

It has four pillars namely Digital Bank, Financial Superstore, Online Marketplace and

End-to-End digital transformation of journey.

1.Digital Bank: Customer can open account through app and can perform

financial as well as non financial transactions.

a) Insta Digital Savings Account, b) Digital Savings Bank Account, c)

Regular Savings Account.

2. Financial Superstore: At present our subsidiaries products’ viz. Life Insurance,

General Insurance, Mutual Fund, De-mat & Credit cards are available to customers.

They need not go to their individual websites.

3.Online Marketplace: The bank has tied up with many companies to provide

single point solution to customer of their various needs.

4.End-to-End digital transformation of journey: It is a complete digital

paperless process where customer can open an Aadhar based account at their own.

PRE APPROVED PERSONAL LOANS (PAPL):The maximum amount offered

under the scheme was capped at Rs 2 lac.

Customers may call our dedicated 24X7 helpline no. 1800111101 or send an email to

[email protected].

This project also aims to create a digital system for document management which is

called DMS.

Benefits of Digitization process:

a. Time taken to open account reduced by as much as 40% which is substantial both

in terms of customer delight that we aim for, and Cost to the Bank.

mailto:[email protected]

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b. Structured data will be available to understand the customer needs better and in

the process make business efficient.

c. Cost will be saved by doing away with printed account opening form.

d. Reduced time for branch processing officials to open the account.

e. Customer’s latest photo is obtained by App/portal and is saved digitally.

f. No further scanning of application forms and signatures will be required at LCPC.

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11. Customer Value Enhancement Business Unit (CVE-BU)

With a view to bring more clarity regarding role of the Cross Selling Department and

also to improve the perspective of cross selling business at operational level it has

been decided by the Competent Authority to rename the Cross Selling Department

as Customer Value Enhancement Business Unit (CVE-BU).

Advantages for customers:

All financial products under one roof.

Savings habit- participation in investments.

Convenience & Transparency.

Continued after sales service from Branch staff.

Relationship, customer orientation ( Financial Planning), Customers’ choice.

Advantages for Bank:

No outlay of funds. Hence no NPAs, no provisions.

No Capital Adequacy Ratio requirement as per Basel norms.

Bank will earn commission.

Enhances customer experience with the organization.

Enables acquiring of new-to-branch customers and retention of existing

customers.

Improves your customer base and help meet goals and objectives.

Encourages customers to use multiple products and services and prevent

switching to competitor banks.

Enjoy customer life time value (customer longevity), reduce acquiring cost.

Our approach should be :

Aim at long term relationship

Give suitable financial planning.

Have product knowledge.

Offer products suitable for customers ‘needs

Proper guidance & after sale service.

Customer education.

Complaint Management System( CMS)

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Complaint Management System (CMS) has been designed mainly to serve as a

single processing system for complaints received from all channels and at different

offices of the Bank viz. written complaints, complaints received from Contact Centre,

SMS Unhappy Channel, Online complaints, Complaints received through Internet

Banking etc. at Branches and Administrative offices.

Benefits Envisaged: -

1. Quickest and Quality redressal through real time consultation with all stake

holders and online monitoring.

2. Encouragement to customers to shift to Alternate Channels for grievance

redressal and reduces crowd in branches.

3. Avoid duplication of complaints, Visibility and Instant acknowledgement to

customer by way of ticket number.

4. Easy tracking by customer, Easy tracking for the Bank.

5. Saving of valuable management time and minimum escalation of complaints.

information on past records of each customer relating to complaints.

6. Powerful MIS at real-time for quality redressal and future strategies.

7. Real Time and instant feedback to Business Units on the Products / Services

introduced by them.

8. Customers can register complaints pertaining to following categories at

Contact Centre / Branches through Complaint Management System: -

ATM/POS/PG related complaints.

ATM Re-pin request.

Fixed Deposit Accounts.

NEFT Remittances.

RTGS Remittances.

Internet Banking.

Opening of Accounts.

Personal Loan Segments.

Customer Service at Branch.

Settlement of deceased accounts.

Safe deposit lockers/articles.

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Collections/Negotiations.

NRI Complaints.

Mis-selling of Third party products.

YONO.

Miscellaneous.

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12. BANKING OMBUDSMAN SCHEME, 2006 ( BOS, 2006)

Reserve Bank of India introduced the Banking Ombudsman Scheme in the year 1995

as the apex level grievance redressal mechanism with the object of enabling

resolution of complaints relating to certain services rendered by banks and to

facilitate the satisfaction or settlement of such complaints.

1. The Scheme was notified under Section 35 A of the Banking Regulation Act,

1949.

2. The Scheme is applicable to Scheduled commercial Banks, Scheduled Primary

Urban Co-operative banks and the Regional Rural Banks.

3. The scheme is applicable to the whole of India.

4. The Reserve Bank may appoint one or more of its officers in the rank of Chief

General Manager or General Manager to be known as Banking Ombudsmen to

carry out the functions entrusted to them by or under the Scheme.

5. The appointment of Banking Ombudsman for a period not exceeding three

years at a time.

6. Any person may file a complaint with the Banking Ombudsman having

jurisdiction on the grounds of deficiency in banking including internet

banking, Mobile Banking or other services in India.

7. A complaint can be lodged with the BO by hand delivery, post, courier, fax or

e-mail. It can also be lodged online from the complaint form placed on the

website of RBI.

8. The complainant should first approach the concerned bank-branch for redress

of his/her grievance. If the bank does not reply within a month or the

complainant is not satisfied with bank's reply, then he/she can approach the

BO. When the complainant directly approaches the BO without approaching

the bank, the complaint is treated as First Resort Complaint (FRC) and

rejected by the BO. Such complaints are invariably sent by the BO to

concerned bank for suitable resolution.

9. ‘Appellate Authority’ means the Deputy Governor in charge of the Department

of the Reserve Bank implementing the Scheme.

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10. The Reserve Bank of India has widened the scope of its Banking Ombudsman

Scheme 2006, to include, inter alia, deficiencies arising out of sale of

insurance/ mutual fund/ other third party investment products by banks

11. Banking Ombudsman can pass an award upto Rs 20,00,000/- ( Rupees

Twenty Lakh only)

12. Compensation not exceeding Rs 1,00,000/- can also be awarded by the

Banking Ombudsman to the complainant for loss of time, expenses incurred

as also, harassment and mental anguish suffered by the complainant.

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13.NPA MANAGEMENT

The Bank’s policy is to ensure containment of NPAs to the least in conformity with

international standards. The Bank has adopted well defined measures for controlling

fresh NPA accretion and resolution of existing NPAs.

The Bank’s policy of containment of NPAs through a combination of measures such

as

i) selection of quality assets through proper credit approval process

ii) maintaining the quality of existing standard assets and initiating effective

measures to upgrade their quality whenever deterioration in their quality is

apprehended or noticed,

iii) upgradation through rehabilitation or restructuring,

iv) recovery through legal process involving effective follow up of suit filed cases,

v) recovery through compromise settlements in appropriate cases and

vi) writing off doubtful/loss assets in cases where prospects of recovery or

upgradation are perceived to be bleak.

Recovery of NPAs:

Besides regular measures that are taken through DRTs/Courts, and action under

provisions of the SARFAESI Act, the Bank will take required measures and develop

innovative strategies to bring about improvement in recovery of NPAs.

These steps will include :

(a) e-auction, including Mega e-auctions

(b) involving BCs, BFs and SHGs in recovery of Agricultural NPAs,

(c) Bank Adalats,

(d) sale to ARCs,

(e) Identifying and engaging with strategic investors for takeover of stressed assets

(f) Compromise Settlements within laid down guidelines,

(g) engaging services of Resolution Agents for possession and auction of mortgaged

properties

(h) considering the eligible cases under SDR Scheme

(i) engagement of services of investigation agencies

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14.INFORMATION SECURITY AWARENESS

1. Information is an asset which, like other important business assets, has value

to an organization and consequently needs to be suitably protected.

2. Information security protects information from wide range of

threats in order to

a) Ensure Business Continuity. b) Minimize Business Damage

c) Maximize Return on Investment ( ROI) and Business Opportunities,

d) Regulatory requirements.

3. Three important factors are Confidentiality, Availability and Integrity.

4. Cyber Security is the body of technologies, processes and practices designed

to protect networks, computers, applications and data from compromise (i.e.,

loss of confidentiality, integrity or availability), typically via the internet or

other forms of connectivity.

5. Cost when system is attacked is the combination of all various factors like,

Amount of data destroyed and its cost, Man-hours of support staff to restore

the system, Idle time of other staff waiting for the system to come back, Our

customers’ satisfaction and Our Bank’s reputation.

6. Everyone who uses a computer, needs to understand how to keep his or her

computer and data secure.

7. Good security practices follow the “90/10” rule. 10% of security safeguards

are technical 90% of security safeguards rely on us – the user - to adhere to

good computing practices.

8. Bank’s Information Security Infrastructure : Centralized Anti-Virus,

Firewalls & Intrusion Detection Systems, IS Awareness for end users,

Benchmarking against international standards – ISO 27001 & ISO 22301,

Active Directory, Biometric Access, SOC – Security Operations Centre.

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9. Applicable Standards for End Users under IS Policy :

Desktop Usage, Clean Desk, Antivirus, Mobile and Portable devices Security,

Password Security, Internet Usage, E-mail Usage, Security in Social Media,

Information Security Incidents and others.

10. Top 10 common security mistakes :

Passwords on Post-it Notes, Leaving your computer on, unattended,

Opening e-mail attachments from strangers, Poor password etiquette,

Laptops on the loose,Blabber mouths, Plug and play without protection,

Not reporting security violations, Not knowing internal threats.

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15.Social Media importance in Bank

1. The social media is gaining increasing popularity day by day and is playing a

greater role for the Banks in their strategy to increase overall business.

2. In this milieu, our Bank has also strengthened its presence in Facebook,

Twitter, You Tube, Linked in, Pinterest, Quora and Instagram to connect with

its huge customer base as well as its potential customers for providing round

the clock information on the Bank’s products and services, as also for

continuous education of the customers.

3. A key element in ensuring social media success of the Bank lies with all its

stake holders including its employees endeavour in enhancing brand value

and image of the Bank among the public.

4. Our Bank’s social media presence was established in November, 2013 and its

social media strategy has come a long way in last few years. SBI has been

consistently ranked number one globally among Top 100 Banks using Social

Media by The Financial Brand in their list of ‘Power 100 Ranks’.

5. Taking cue from various interactions on social media, focus has been kept on

creating contact of customer’s choice, be it tutorial videos on our various

digital products, important announcements, security tips for using digital

products or tax saving options.

6. SBI has also focused on creating content for the new age professionals

present on LinkedIn and is one of the most engaging Indian banks on the

platform.

7. This year the official pages on Instagram and Facebook started making use of

the ‘stories’ feature to engage the audience.

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8. SBI is the highest number of followers across all banks in the world in

Facebook and twitter. SBI is the 2nd highest views across all banks in the

world in You Tube.

9. SBI is the highest number of followers across all Indian Banks in Linkedin,

Pinterest and Quora. SBI is the 2nd highest number of followers across all

Indian Banks in Instagram.

10. ‘Social Media Usage Policy’ of the Bank is also part of the ‘Code of Conduct

and Code of Ethics’ policy of the Bank, which is placed at the HR site of

Corporate Centre. The Policy prohibits publishing any official information/

circulars/ memorandum/ documents etc. which are of the record of the State

Bank, without prior approval.

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EXERCISE - 1

A Banker will be dealing with different types of trade and industry. There is a virtual

explosion of knowledge in every area of human activity. A banker has to be quick in

understanding the meaning of the written word. This is particularly important as the

volume of written communication is sizeable in banking industry. In the examination,

a passage reasonably complex in language and content will be given for

'Comprehension'.

Questions will be based on a given passage. The questions may fall into following

categories.

a) Main idea of the passage.

b) Implied ideas which may not be stated explicitly.

c) How the ideas/information given in the passage can be applied to a context

outside the passage.

d) Tone of the passage, attitude of the author, etc.

e) Logical structure of the passage, i.e. whether a particular idea has been

presented, defined, rejected, etc. Also questions that measure the ability to

comprehend the supporting ideas may be asked. Please keep in mind the following

hints to answer the questions on 'Comprehension'.

1. First, read the passage in full, fairly quickly and get the general idea.

2. Read it for the second time and understand the details.

3. Study the questions thoroughly; look into the relevant portions of the passage,

read them again; grasp the

meaning and write the answer in your own words. The answer should be precise

and to the point.

4. Write complete sentences while answering the questions.

5. Some questions can be answered only if ideas expressed in the different portions

of the passage are combined. Hence, be thorough with the meaning of the entire

passage.

Note: At times, a passage may be long and complex. More time may be needed to

read the passage. In such cases, you may take up the passage last for answering

the questions. Time management is essential. Allot sufficient time for this task. The

ecological system in India is currently under great pressure owing to growing

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pressure of human and livestock population. Resource conservation for sustained

agricultural development, therefore, assumes critical importance. Keeping this

objective in view, more attention has to be paid to resource conservation research -

soil and water conservation, better water management, conservation of flora and

fauna and conservation of post-harvest food in quantitative and qualitative terms.

More specifically, the environmental studies need to be woven into the economic

review and approval of the projects.

Once this kind of project appraisal becomes a part of the system, the conflict

between the environment and development would be reduced to manageable

proportion. Another major issue in Indian Agriculture that has come to assume

topical significance relates to the redressal of the fundamental structural problems of

regional crop imbalances. At one extreme, some regions have witnessed a sharp

growth but limited to a few crops, and at the other, some other regions have shown

a rigid inability to show any comparable signs of development. Clearly when such a

situation arises, it is indicative of the inability of the policy makers to design a

programme that would allow orderly adjustment of the agricultural sector production

and development through farm management approach and the farmers' response to

stimuli. The sharpening of focus on the measures to secure greater diffusion of

growth across regions is, therefore, necessary in the future development plans of

the country.

Specifically, now that the food situation has become easier, the emphasis in Indian

Agriculture has shifted to diversification of agriculture, correcting regional

imbalances in agricultural productivity and development, improving dry farming/rain-

fed farming systems, stimulating development in the Eastern and North Eastern

regions of the country and increasing the production of oilseeds. Imparting stability

to agricultural output, bringing the benefits of green revolution to the weaker

sections of farmers and shaping the agricultural credit policy to stimulate balanced

growth, are some other related problem areas that have also assumed topical

significance. Indian Agriculture has come to a stage of development when its

farming business should get more commercialized and diversified. Farmers should

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extend their activities/operations to dairy, poultry, fisheries, horticulture and forestry

enterprises to improve their farm incomes rather than limiting themselves to crop

husbandry. The food grains strategy of growth relentlessly pursued in the 1970s has

certainly made the food situation easier but did not bring about much poverty

alleviation as it lacked the desired intensive approach embracing a wide range of

crops, livestock, fishery and forestry components of agriculture:

COMPREHENSION EXERCISE -1

Directions (Q 1-5): Read the passage carefully and answer the questions

given below:

1. The writer recommends research in resource conservation because

a) The emphasis is now shifted to agriculture

b) The ecological balance is currently under pressure

c) India needs sustained agricultural development

d) There is a constant conflict between environment and development

2. The expression 'flora and fauna' refers to

a) Flourishing and fluctuations of agriculture and development

b) Intensive approach to agriculture

c) Flower kingdom and fisheries

d) Plant and animal kingdoms

3. The structural imbalances referred to in the passage is

a) The man-animal-crop balance is improper

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b) The production of crops is either very high or low

c) The yield per acre in some regions are very high

d) Both (a) and (c)

4. A major limitation in the food grains strategy of growth in the 1970s are:

a) Famines destroyed the expected rate of production

b) It lacked the intensive approach covering various crops, livestock, fisheries, etc

c) It brought down the poverty of the masses

d) It did not bring down the per capita income

5. According to the writer, the emphasis in Indian agriculture has shifted from -- to -

-

a) Industry to agriculture

b) Agriculture to industry

c) Diversification of agriculture to agricultural output


Directions (Q 6-10): Choose the word which has the same meaning as the

word

given in the passage:

6. Sustained

a) Continuous

b) strengthen

c) suffer

d) withdrawn

7. Appraisal

a) Assessment

b) praiseworthy

c) appreciate

d) apprise

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8. Alleviation

a) Affiliation

b) aggravate

c) alien

d) lighten

9. Conservation

a) Consequential

b) member of the conservative party

c) Preservation

d) conventional

10. Indicative

a) Acting as a sign

b) innovative

c) indiscriminate

d) indicator

Directions (Q 11-15): Choose the word which has the opposite meaning to

the word given in the

passage:

11. Approval

a) Accede

b) affirm

c) refusal

d) arrival

12. Rigid

a) Unbuildable

b) flexible

c) rigorous

d) inelastic

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13. Diffuse

(a) Meander

b) concise

c) digressive

d) confusion

14. Benefits

a) Disadvantages

b) well-meaning

c) boost

d) promote

15. Expand

a) Amplify

b) elaborate

c) contract

d) expend

Directions (Q.16-20) choose the correct words or a phrase that means the

same:

16. In the passage 'has shifted to' refers....

a) There is a shift in premises

b) Attention of focus has been diverted to

c) Priorities have been shifted to

d) Not able to infer anything

17. '... not to bring much poverty alleviation' means

a) Did not lighten poverty problems

b) Alleviated poverty problems

c) Did much to alienate poverty


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18. The best title for the passage is:

a) Flora and Fauna

b) Resource conservation and India

c) Resource conservation Research

d) India Agriculture

19. 'Green revolution' refers to

a) Revolution in green belt areas

b) Increase in food grains

c) Revolution in animal husbandry

d) Crop revolution

20. In the passage'.... Embracing a wide range of crops etc. means

a) Braced up with all these factors

b) To hug warmly all these factors

c) To welcome warmly

d) Taking all these into consideration

ANSWERS

1. c 2. d 3. c 4. b 5. c 6. a 7. a 8. d 9. c 10. A 11. c 12. b 13. b 14. a 15. c 16. c 17.

a 18. c 19. b 20. d

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EXERCISE-2

Portfolio clean up and recapitalization of the existing banks have to go hand in hand

with necessary institutional and management changes in order to foster a healthy

and competitive banking system. Three steps have been taken towards this end. The

first pertains to allowing public sector banks to raise capital from the market and

meet their capital needs. In this way, public sector banks can raise fresh equity from

the market while maintaining the Government's majority ownership. This would lead

to the 'corporatization' of the existing banks, and allow them to issue shares in the

market as part of the recapitalization effort. While the State Bank under its existing

Act, has already gone to the market, suitable legislative changes are required for the

nationalized banks also to access the capital market.

The second significant measure deals with the allowing of direct private sector

investment in the banking sector through entry and expansion. The entry of new

institutions will provide a healthy measure of competition and serve as an important

vehicle for introducing more modern methods and techniques. Foreign and NRI

equity participation is also being permitted in the banking and financial sector. The

Banking Regulation Act has been amended so as to enable banks to appoint a non-

executive part-time chairman and a full time Managing Director and relax the

restriction on voting rights from the existing one percent to ten percent of total

voting rights. The third measure to improve the competitive character is by granting

more operational freedom to banks through liberalization of lending norms and

lending arrangements. Sufficient care has been taken to see that entry of new

banks takes place within a set prudential framework which includes adequate capital

and proven technical and professional capacity to manage the bank safely and

soundly.

It has also been ensured that connected lending practices, concentration of credit,

crossholding with industrial groups, etc., are not engaged in. Adequate safeguards

are in place to maintain an arm's length between the promoting institution and the

bank. Insistence on the new banks meeting the priority sector lending targets and

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other social obligations is in keeping with the principle of creating a level playing

field for all banks. The regulators will be closely watching the manner in which new

banks conduct their operations.

COMPREHENSION PASSAGE – 2


given below:

1. According to the author, corporatization of banks mean:

a) There can be a healthy and competitive banking system

b) The corporate fund banks to bring about corporatization

c) There is recapitalization for corporate

d) The public sector banks can now issue shares to public

2. If new banks in the private sector come to existence -

a) It will provide a healthy measure of competition to the existing banks

b) It will bring about cut throat competition

c) It will provide both foreign and NRI equities


3. To usher in a competitive banking system

a) Shares are issued to the public leading to corporatization

b) The banks are given freedom to operate freely

c) New banks are empowered with full personnel

d) Legislative changes have to be implemented

4. An example of 'portfolio clean up' is:

a) Making adequate provision for the various classes of NPAs

b) Changing the hierarchy among the key personnel

c) Making necessary institutional changes to bring about monopoly

d) Improving the competitive character of the existing banks In the passage, the

word 'regulators' refer to: a

a) The RBI

b) The Corporate

c) The existing banks

d) The state owned banks in the country

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word given in the passage:

6. Foster

a) Destroy

b) Suppress

c) Promote

d) A person with a frost bite

7. Expansion

a) Boom

b) Expand

c) Inflation

d) Downsizing

8. Norms

a) Yardstick

b) Midpoint

c) Exceptions

d) Maximum

9. Prudential

a) Economic

b) Expensive

c) Lavish d) Proud

10. Adequate

a) Inferior

b) Useless

c) Competent

d) Satisfying

Directions (Q 11-15): Choose the word which has the opposite meaning as

the word given in the passage:

11. Foreign.

a) Alien

b) Emigrant

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c) Native

d) Heterogeneous

12. Allow

a) Prohibit

b) License

c) Accord

d) Acquiesce

13. Access

a) Admittance

b) Contact

c) Egress

d) Accent

14. Expansion

a) Dis-expand

b) Amplification

c) Unfolding

d) Downsizing

15. Expand

a) Amplify

b) Elaborate

c) Contract

d) Expend

16. In the passage 'To go hand in hand' means

a) To travel together

b) To be complementary

c) To be rivals

d) Play a double game

17. In the passage 'An important vehicle' means

a) An innovative way

b) An important means of

c) Vehicle to transport

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d) None of these

18. In the passage 'lending arrangements' means

a) Arranging to lend

b) Lending facilities of expertise

c) Borrowing facilities


19. In the passage 'To maintain an arm's length' means

a) The length of an arm

b) From the arm of the bank to the promoting institution

c) To keeps the dealings free from any influence or bias


20. In the passage 'to be closely watched' means

a) Monitored closely b) Watched with closed eyes

c) Closed watch d) None of the above

ANSWERS

1. d 2. a 3. b 4. a 5. a 6. c 7. b 8. a 9. a 10. C 11. c 12. a 13. c 14. d 15. c 16. b 17.

b 18. c 19. c 20. a

EXERCISE-3

The major forces changing the banking and financial industries are globalization,

deregulation, technological change and innovation. Globalization in the banking and

securities industries mean the end of geographical restrictions on doing business.

The globalization of the two industries came about through a combination of the

banks and securities firms responding to the needs of the customers looking for both

new sources of funds and venues for investing funds. An ancillary effect of this

activity has been an inevitable easing, and in some cases, liberalization of

regulations. This has resulted in banks from Hiroshima, for example, competing in

London with other Japanese banks while not competing directly with them in their

domestic market. Globalization has, in fact increased competitive pressures. The

high costs of maintaining far-flung branches in foreign markets have, further

contributed to the erosion of bank margins. The cost of doing business is higher in

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exotic places, be they London or Singapore. Banks which have only a long domestic

history are hard pressed to contain such costs. The Banks and securities firms are

experiencing their own wage inflation as they struggle to keep the salaries at their

different foreign locations in line with local salaries. The fact that banks and

securities firms are working in different markets makes it doubly difficult for

domestic regulators to enforce restrictive measures designed in some cases by the

various finance ministries to assure a "Level Playing Field" within the domestic

market.

Deregulation is one of the principal inevitable consequences of globalization.

Domestic banks operating in foreign locations have to adapt to survive. Often times,

adaptation to foreign practices means adopting local market customs and practices

which are often inimical to domestic regulatory practices. This only tends to

accelerate the trend towards deregulation as the domestic regulators wring their

hands over the foreign practices of their domestic banks in far-off markets.



given below:

1. In the passage, the word 'globalization' refers to:

a) The existing restrictions on banks and financial institutions

b) Increased competitive pressure

c) Competing globally

d) Curbing the freedom of the domestic market

2. According to the author, the immediate effect of globalization is:

a) More risks of losses to domestic banks

b) The cost of operations has gone up which has lowered profitability

c) Foreign banks have to adopt the customs of the local markets

d) There is a high rate of inflation in the country

3. The two crucial problems due to globalization are:

a) Bring about uniformity in the domestic as well as foreign sectors

b) Discrepancies in the salaries between the domestic and foreign banks

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c) Both (a) and (b)


4. The word 'level playing field' means:

a) Deregulating policies in exotic places like Singapore and London

b) Involving overseas participation

c) Having a healthy competitive field

d) Uniform conditions and stipulations that govern all banks operating in the

domestic market

5. The cause for deregulation is

a) Globalization

b) Competition among domestic banks

c) Liberalization of banking policies

d) Domestic markets



6. Venues

a) Places

b) Opportunities

c) Planet Venus

d) Avenues

7. Inevitable

a) Unavoidable

b) Uncertain

c) Destined

d) Avoidable

8. Inflation

a) Increased wages

b) Deflation

c) Disbursement

d) Gathering

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9. Consequence

a) Antecedent

b) Aftermath

c) Cause

d) Source

10. Inimical

a) Adverse

b) Friendly

c) Helpful

d) Sympathetic



11. Domestic

a) Alien

b) Exported

c) Internal

d) Indigenous

12. Accelerate

a) Precipitate

b) Defer

c) Advance

d) Expedite

13. Restriction

a) Circumspection

b) Sanction

c) Prohibition

d) Regulation

14. Liberal

a) Tolerant

b) Magnanimous

c) Conservative

d) Unorthodox

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15. Exotic

a) Mysterious

b) Extraneous

c) Naturalized

d) Familiar

ANSWERS

I. c 2. b 3. b 4. d 5. A 6. b 7. a 8. a 9. b 10. A 11. a 12. b 13. b 14. c 15. D

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EXERCISE- 4

The effectively functioning organization makes change its open ally. It keeps the

barriers low. Its leaders know that survival depends on the regular euthanasia of the

organization’s regularities. Otherwise everybody and everything winds down.

Entropy overtakes enterprise. Competitiveness diminishes and finally expires.

Nothing characterizes the successful Organization so much as its willingness to

abandon what has been long successful. Of course, not all that is new is better.

Good things have good reasons for enduring. It may be good to be skeptical of

fashionable new prescriptions for achieving organizational vitality and competitive

virtuosity, but it's bad to be resistant to the kind of healthy self - examination that

might prescribe new medicine.

Nobody who leads or manages knowingly resists self - examination and adaptation.

But to keep the barriers low takes effort. It requires open advocacy and

demonstrable receptiveness to innovation. The history of long surviving and thriving

enterprises is a history of innovation, mostly by their forcing changes on others and

on themselves. Sometimes these occur suddenly and painfully. Mostly they happen

gradually, continuously, even imperceptibly. What's key, especially in the complex

Organization where work is deeply regularized, is. leadership that insist on constant,

open self-examination of everything, on demonstrable receptiveness to change, and

on the budgetary encouragement of innovation. It seeks out, encourages, and

supports intelligent, experienced people who have the will, energy, and courage to

make changes they think make sense. Often these people will be younger rather

than older.

COMPREHENSION PASSAGE-4

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given below:

1. Which of the following is not true as per the passage?

a) A successful organization does not change

b) A successful organization will adapt itself to changes

c) Competitiveness will increase with the ability to manage changes

d) A healthy organization always carries out a self-examination

2. It does not require any efforts to adapt to changes?

a) True

b) False

c) Can be true at times

d) Difficult to assess

3. The strategy suggested in the passage for adapting to changes is

a) Constant self-criticism

b) Regular self-evaluation

c) Regular appraisal

d) Constant and open self-examination of everything

4. The author recommends that an organization must adapt to all new changes

a) True

b) Half the statement is true

c) False

d) Can't say

5. Only young people can adapt to changes

a) False

b) True

c) Can't say

d) The passage does not mention this

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6. Ally

a) Adversary

b) Accomplice

c) Foe

d) Antagonist

7. Skeptical

a) Believing

b) Doubting

c) Trusting

d) Skipping

8. Adaptation

a) Defiance

b) Compliance

c) Denial

d) Disagreement

9. Advocacy

a) Criticism

b) Rejection

c) Championing

d) Advocates

10. Receptiveness

a) Imperviousness

b) Responsiveness

c) Awareness

d) Insensitivity

Directions (Q 11-15): Choose the word which has the opposite meaning as


passage:

11. Diminish

a) Attenuate

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b) Develop

c) Wane

d) Curtail

12. Thriving

a) Successful

b) Declining

c) Progressing

d) Thriftiness

13. Encourage

a) Animate

b) Stimulate

c) Dampen

d) Exhilarate

14. Support

a) Patronize

b) Supply

c) Supple

d) Oppose

ANSWERS

I. d 2. b 3. d 4. c 5. A 6. b 7. b 8. b 9. c 10. B 11. b 12. b 13. c 14. D

EXERCISE- 5

Years ago, I had viewed a seven-hour TV programme in Sydney. The last scene of

this programme showed a doctor Swami of the Ramakrishna Mission Sevashrama of

Varanasi treating a polio child with love and care. On being asked by the interviewer

as to what he was doing, he replied, "I am obviously treating this little patient; but it

is more than that; I am worshipping God present in all beings through the services

of this little-ailing child." What causes the transformation of management from a

static system to a dynamic one is this human orientation. There the heart is touched,

not merely the intellect. Every issue will then evoke in the employee the human

response to the human urges of people living far and near. The human values do

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not proceed from buildings and equipments, rules and regulations, organizations and

systems; they unfold from the

depth of the human personality.

When man as a Person, as an enlightened citizen, becomes an employee of public

institutions like banks or government offices, human values become manifest and

qualitatively enrich the work of these institutions. Such a person will not think of

himself as a mere employee, but as a free citizen of India, called upon by the nation

to perform a particular service to the people. This transforms work into admission;

and enhances the dignity of the worker from being a mere employee to an

instrument of human purpose. A clerk's work done with a clerk's mind makes that

clerk and his work small; but the same work done with a citizen's mind, elevates

both the work and the worker. This is the philosophy of work taught in the

Bhagvadgita. This is echoed in the oft-quoted sentence of Bernard Shaw: This is the

true joy in life- to be used for a purpose which you consider mighty; to be a force of

nature, and not a cloud of ailments and grievances, ever complaining that the world

does not devote itself to making you happy!



given below:

1. The motto of the doctor can be summarized as:

a) To love people is to love God

b) To serve the poor and the sick is to love God

c) Service to people is worship of God

d) None of these

2. The static system of management will be changed and made dynamic if--aspect is

kept in mind.

a) Human

b) Work

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c) Ego

d) Intellect

3. A public servant must have the following attitude:

a) That he is called upon by the nation to perform a particular service to the people

b) That his services be rewarded handsomely

c) That his work only to the sick and poor is a service to God


4. The Bhagavadgita preaches:

a) Dignity of labour b) Work with an eye to achievement

c) Satisfy one's employer d) Work to satisfy the intellect

5. Where do human values proceed from?

a) Buildings and equipment b) Organization and systems

c) Norms and regulations d) From the depths of human personality



6. View

a) Watch

b) Opinion

c) Attitude

d) Analysis

7. Evoke

a) Conjure

b) Quell

c) Stop

d) Suppress

8. Unfold

a) Announce

b) Conceal

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c) Fold up

d) withhold

9. Urge

a) Advocate

b) Dissuade

c) Urgent

d) Urgency

10. Mere

a) Only

b) Marvelous

c) Limited

d) Meager



passage:

11. Static

a) Changeless

b) Active

c) Passive

d) Fixed

12. Elevate

a) Heighten

b) Drop

c) Decrease

d) Upraise

13. Mighty

a) Controlling

b) Weak

c) Absolute

d) Evincible

14. Obvious

a) Obscure

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b) Conclusive

c) Open

d) Apparent

15. Free

a) Liberated

b) Loose

c) Able

d) Restrained

ANSWERS

1. c 2. a 3. a 4. d 5. D 6, a 7. a 8. a 9. a 10. A 11. b 12. b 13, b 14. a 15. d

386

EXERCISE- 6

The ability of a company to live in harmony with its business environment does not

happen automatically. On the contrary, it depends on the ability of the company's

senior managers to absorb what is going on in the business environment and to act

on that information with appropriate business moves. In other words, it depends on

learning. Or, more precisely, on institutional learning which is the process by which

management teams change their mental models of their company, their markets and

their competitors. For this reason, we think of planning as learning and of corporate

planning as institutional learning. Institutional learning is much more difficult than

individual learning. Individual managers in most companies reveal admirably high

levels of thinking. And yet, the level of thinking that goes on in the management

teams of most companies is considerably below the individual capacities. In

institutional learning situations, the learning level of the team is often the lowest

common denominator, especially with teams that think of themselves as machines

with mechanistic, specialized parts; the production manager looks at production, the

distribution manager looks at distribution, the marketing manager looks at

marketing.

Sociologists and psychologists tell us it is pain that makes people and living systems

change. But crisis management - pain management - is a dangerous way to manage

for change. Once in a crisis, everyone in the Organization feels the pain. The need

for change is clear. The problem is that you usually have little time and few options.

The deeper into the crisis you are, the fewer options remain. Crisis management, by

necessity, becomes autocratic management. The positive characteristic of a crisis is

that the decisions are quick. The other side of that coin is that the implementation is

387

rarely good; many companies fail to survive. The challenge, therefore, is to

recognise and react to environmental change, before the pain of a crisis. Not

surprisingly, this is what long lived companies do.



given below:

1. The author characterizes corporate planning as--

a) Individual learning

b) Institutional learning

c) Observation

d) Action on acquiring information

2. According to the passage, team learning is easier than learning of the individuals

in the team:

a) True

b) False

c) Can be true at times

d) Difficult to assess

3. Sociologists say that is the important reason for change.

a) Autocracy

b) advanced technology

c) pain

d) crisis management

4. The limitation of a crisis management

a) Failure to survive

b) autocracy

c) Decision making is slow

5. The positive characteristic feature of a crisis is:

a) Decisions are quick b) Implementation is rarely good

c) Everyone in the organization feels the pain

d) Many companies fail to survive

388



6. Automatically

a) Consequentially

b) Possibly

c) With autocracy

d) Through force

7. To implement

a) To carry out

b) To experiment

c) An apparatus

d) To imply

8. Competitors

a) Rivals

b) Contestants

c) Losers

d) Competition

9. Reveal

a) Announce

b) Conceal

c) Hidden

d) Confess

10. Autocratic

a) Dictatorial

b) Lenient

c) Democratic

d) Self govt



passage:

11. Absorb

389

a) Imbibe

b) Ingest

c) Blot

d) Dissipate

12. Appropriate

a) Improper

b) Appurtenant

c) Applicable

d)Absolute

13. Precisely

a) Specifically

b) Doubtfully

c) Literally

d) Vaguely

14. Ability

a) Ignorance

b) Competence

c) Endowment

d) Enable

15. Often

a) Generally

b) Irregularly

c) Never

d) Seldom

ANSWERS

1. b 2. b 3. c 4. a 5. A 6. a 7. a 8. a 9. a 10. A 11. d 12. a 13. d 14. a 15. d

390

EXERCISE- 7

The operation of technology requires capital equipment, buildings, land and various

utilities. Appropriate investment needs to be made for that. Higher investment would

need more funds. Therefore, the choice of technology is restricted by availability of

funds with the investor. Capital is scarce hence it has to be utilized optimally to

maximize the output in the forms of profits, value addition and/or employment

gains. Generally speaking, higher technology needs higher investments. The

investment in a technology itself varies with other factors such as scale of

operations, degree of automation etc. The elements which would need to be

considered in the investment are the cost of equipment, land, building, and cost of

technology itself, utilities and contingency for the change of prices.

In any developing country, unemployment problem is wide spread and economic

planners cannot ignore it. Therefore, the technology adopted should generate

desired employment. There is a relationship in case of each technology in respect of

investment and employment. In most of the cases, fund availability is a constraint.

The parameters like employment generation per unit of investment for different

technologies become important determinants while choosing technology and

industry. From the point of view of the economic planner, higher employment

generation may be important in a densely populated country. But from the point of

view of the private investor the technology with minimum people may be desirable

as it would involve less labour problems. Hence a deliberate choice has to be made.

In the Indian situation, a good example of the choice of technology relates to

handloom which remains a priority sector for generation of employment in the

country. The employment generated per lakh rupees of investment is very high in

handlooms as compared to that in integrated mills.

The purpose of technology is to convert certain raw material into finished goods.

The difference between the selling price of finished goods and the cost of raw

material is known as value addition. The better the technology, the higher the value

added,. This would be because of two factors. Firstly, the quality may be high so

that with same raw material higher sales prices could be achieved. Secondly the

391

lower grade and low value material may be used to get the same quality of finished

goods. Higher value addition would contribute to higher income in the local area. If

the value added is low, the technology should not be used. Particularly, where the

technology is being purchased, calculations need to be made regarding value added

part carefully. In a number of cases the collaborator transfers only part of

technology and the value addition gives a clear cut indication about it.



given below:

1. Suggest a suitable title for the passage

a) Unemployment problem

b) Betterment of technology

c) Higher technology and. investment

d) Choice of technology

2. The three aspects to the right technology are

a) Investment, unemployment, value addition

b) Investment, employment value addition

c) Investment, unemployment, profit


3. 'Value added' means

a) Difference between the sale price of finished goods and the purchase price of

inputs

b) Adding value to sale price

c) Adding on investment to value


4. The author states that technology from the developed world should not be

purchased because

392

a) Income generated by adoption technology is low

b) Income generated by adoption technology is high

c) Income generated by adoption technology is competitive

d) The passage does not say anything about this

5. Is the author in favour of purchasing technology from the developed world?

a) Yes

b) No

c) Can't say

d) The passage make no such statement



6 Collaborator

a) Associate

b) Opponent

c)Ally

d) Adversary

7. Scarce

a) Abundant

b) Plentiful

c) Sacred

d) Scant

8. Deliberate

a) Accidental

b) Delirium

c) Rash

d) Intentional

9. Parameters

a) Expanse

393

b) Measurements

c) Para language

d)Meteric

10. Contingency

a) Possible event b) Continents

c) Continent providing agency d) Possibility



passage:

11. Scarce

a) Plentiful

b) Limited

c) Sparse

d) Sacred

12. Gains

a) Losses

b) Benefits

c) Compensations

d) Cash flows

13. Private

a) Intimate

b) Public

c) Open

d) Retired

14. Dense

a) Scant

b) Compared

c) Crowded

d) Compressed

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15. Optimal

a) Archetype

b) Mediocre

c) Least favorable

d) Excellent

ANSWERS

1. d 2. b 3. a 4. D 5. d 6. a 7. d 8. D 9. b 10. a 11. a 12. A 13. b 14. a 15. C

395

EXERCISE – 8

Since change is the function of leadership, being able to generate highly energized

behavior is important for coping with the inevitable barriers to change. Just as

direction setting identifies an appropriate path for movement and just as effective

alignment gets people moving down that path, successful motivation ensures that

they will have the energy to overcome obstacles. Managerial processes cannot be

dependent on the unusual. The whole purpose of systems and structures is to help

normal people who behave in normal ways to complete routine jobs successfully,

day after day. It's not exciting or glamorous. But that's management. Leadership is

different. Achieving grand visions always requires an occasional burst of energy.

Motivation and inspiration energies people, not by pushing them in the right

direction as control mechanisms do but by satisfying basic human needs for

achievement, a sense of belonging, recognition, self-esteem, a feeling of control

over one's life, and the ability to live up to one's ideals. Good leaders motivate

people in a variety of ways. First, they always articulate the organization’s vision in a

manner that stresses the value of the audience they are addressing. This makes the

work important to those individuals. Leaders also regularly involve people in deciding

how to achieve the organization’s vision. This gives people a sense of control.

Another motivational technique is to support employee efforts to realize the vision by

providing coaching, feedback, and role modeling. Finally, good leaders recognize and

reward success, which not only gives people a sense of accomplishment but also

makes them feel like they belong to an Organization that cares about them. When

all this is done, the work itself becomes

intrinsically motivating.

The more that change characterizes the business environment, the more that

leaders must motivate people to themselves provide leadership as well. It tends to

reproduce leadership across the entire Organization. This is valuable, because

coping with change demands initiatives from a multitude of people. Of course,

leadership from many sources can easily conflict.

396

COMPREHENSION PASSAGE - 8

Directions (Q.l-6): Read the passage carefully and answer the questions

given below:

1. What is important for coping with change?

a) Being a good leader

b) Being aware of the benefits of change

c) Being able to generate highly energized behavior


2. What distinguishes leadership from management?

a) Providing motivation

b) Creating a sense of achievement

c) Creating a sense of belonging & self-esteem

d) All of the above

e) None of the above

3. According to the author management is neither exciting nor glamorous - Is it

because

a) You have to work out strategies to implement unusual systems

b) It involves an in-depth study of behavior

c) You have to help people complete routine jobs successfully day after day

d) A combination of a, b and c


4. How can work be made intrinsically motivating?

a) By encouraging employees to work for individual benefit

b) By inculcating a sense of belonging in people by sharing the vision of the

organization.

c) By training employees not to expect rewards for success

d) By undermining the value of the audience

e) None of above

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5. Why does the author feel self-leadership is needed?

a) It is a need dictated by change in business environment

b) It is a useful tool to eliminate non-contributors

c) Initiative from many people is not really helpful

d) It will lessen the load of managers

e) All of the above

6. What is the caution sounded by the author in respect of self-leadership?

a) Employers will be swamped with too many ideas

b) Today's business environment does not call for it

c) As leadership emanates from various sources, conflict can set in easily

d) The vision of the organization will suffer

e) All of the above

Directions (Q .7-12): Choose the word which has the same meaning as the


7. Alignment

a) Arrangement

b) Reconciliation

c) Improvement

d) Regulation

8. Vision

a) Fantasy

b) Perception

c) Trance

d) Vivid mental image

9. Coaching

a) Illustrating

b) Brainwashing

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c) Educating

d) Lecturing

10. Characterizes

a) Delineates

b) Portrays

c) designates

d) defines

11. Initiatives

a) Action

b) First step

c) Enterprise

d) Responsibility

12. Multitude

a) Throng

b) Mob

c) Gathering

d) A large number

Directions (Q.13-17): Choose the word which has the opposite meaning to


passage:

13. Inevitable (The inevitable barriers to change)

a) Destined

b) Doubtful of happening

c) Doomed

d) Deniable

14. Appropriate (Identifies an appropriate path)

a) Unsuitable

b) Secure

c) Budget

399

d) Set apart

15. Overcome (energy to overcome obstacles)

a) Overwhelm

b) Vanquish

c) To be defeated

d) Trounce

16. Articulate (Always articulate the organisation vision)

a) Incoherent in speech

b) Disconnect

c) Delink

d) conjoin

17. Conflict (From many sources can easily conflict)

a) Battle

b) peace

c) contend

d) Agree

Directions (Q.18-20): Choose the correct words or a phrase that means

the same

18. Moving down that path

a) Climbing down the stairs

b) Towards a destination

c) The other way

d) Trudging along wearily

19. Achieving grand visions

a) Having a keen eye for detail

b) Not colour blind

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c) Ability to visualize

d) Realising a dream

20. A sense of control

a) The seventh sense

b) Having a firm grip on situations

c) Being a control freak

d) Being able to drive well

ANSWERS

1. c 2. d 3. c 4. b 5. E 6. c 7. d 8. d 9. c 10. D 11. b 12. d 13. b 14. a 15. C 16 a 17.

d 18. b 19. d 20. B

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EXERCISE- 9

Doctors make the point that stress-related ailments do not usually stem directly from

stress as such. You can take two people under the same amount of pressure, and

one will be healthy while the other is sick. Our accommodation of stress depends

partly on what type of personalities we have: broadly speaking, those who are highly

competitive, insecure, materialistic and abrasive are more likely to succumb to the

effects of stress than those who are less prickly. It also depends on the kind of lives

we lead. In every case, however, the question of whether or not stress takes a

heavy toll on our physical or mental health ultimately depends on how we handle it.

Of all the characteristics that humans have and animals do not, the one that stands

out most is man's ability to do something about his condition. We can control our

thoughts, feelings and actions. We are thus capable of exercising control over the

impact on us of stress. "Learn to ignore what you can't control and learn to control

what you can" writes Dr. Peter G.Hanson, author of the commendable. The Joy of

Stress, a recent bestseller. "Take an active role in your own management: does not

be just a passive tourist through life."

When we turn our minds to dealing with stress, however, we should be careful to

make the distinction between controlling it and trying to escape from it. People who

believe that they can hide away from the pressures of life by "doing nothing" may

find that inactivity is very stressful. People subject to stress under load are liable to

be wakeful, withdrawn, and have poor appetites. If they work, they tend to be

accident prone have a high absentee rate, and lack judgment. What they are

missing, clearly, is the energizing

tension which stress exerts. Experts in the field speak of a "stress comfort zone" in

which there is neither strain nor slack on a particular person. The dimensions of the

zone vary with personalities. The threshold seems higher for some hardy souls, than

it is for the majority. But on close observation, you may find that these cool-headed

individuals are able to adapt to pressure better than others because of their positive

attitudes. In general, any effort to deal with stress will be reinforced by considering

what steps you can take to make yourself physically fitter. Unfitness is a major

402

source of distress in its own right. The traditional ways of alleviating tension fly in

the face of keeping fit: smoking, drinking and perhaps eating too much, taking

tranquilizers. By merely following a healthful diet and exercising a little, you can use

physical stress to fight mental distress. The first line of defense against pressure is

the confidence that comes from feeling vibrantly alive.

COMPREHENSION PASSAGE-9 Directions (Q.l-7): Read the passage

carefully and answer the questions given below:

1. Does the author believe that we can control the impact of stress on us?

a) Yes

b) No

c) Can't say

d) Depends on the situation

2. What type of attitude is recommended for managing stress?

a) A passive laidback approach

b) Mute acceptance of any stressful situation

c) An active approach, e.g.: healthy diet, appropriate exercise avoidance of

stimulants, etc

d) Combination of all three

3. What does the author mean when he speaks of a 'stress comfort zone'?

a) Complete denial of stress

b) A positive mindset in extremely stressful situation

c) Escapist attitude

d) Being able to adjust to stress without feeling strain or slackness

e) Hibernation

4. What can be done to combat stress?

a) Physical fitness b) Healthy diet

c) A confident "can and will" attitude

d) Avoidance of tranquilizers e) All of the above

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5. Is stress uniform for all people?

a) Yes b) No c) Uniformity evident in men

d) Uniformity evident in women

6. What is the one characteristic that is distinctive of humans vis a vis animals?

a) Being able to stand on two feet

b) Being able to think calmly and infer on what needs to be done during stressful

times

c) Being able to adapt to inner and outer environments

d) All of the above


7. People subject to stress usually exhibit/are:

a) Poor appetites, withdrawn behaviour and insomnia

b) High absentee rate, lack of judgment

c) Not accident prone

d) (a) (b) and (c)

e) (a) and (b) only

Directions (Q.8-12): Choose the word which has the same meaning as the


8. Succumb (more likely to succumb)

a) Give in

b) Give vent to

c) Give yield

d) Die

9. Passive (...A passive tourist through life)

a) Receptive

b) Stirred

c) Inactive

d) Influenced

10. Accommodation (Accommodation to stress.)

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a) House

b) Hotel

c) Boarding & lodging

d) Ability to adapt

11. Hardy (The threshold seems higher for some hardy people)

a) Muscular

b) Flexible

c) Well-equipped

d) Acclimatized

12. Energizing (..Energizing tension that stress exerts)

a) Make active

b) Exhausting

c) Uplifting

d) Invigorating

Directions (Q.13-17) Choose the word which has the opposite meaning to


13. Prickly (Effects of stress on those who are less prickly)

a) Thorn less

b) Rounded

c) Single minded

d) Confident

14. Abrasive (competitive, insecure and abrasive)

a) Smooth

b) Unperturbed

c) Unscathing

d) Mild in speech

15. Commendable (Author of the commendable book)

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a) Pitiful

b) Unapproved

c) Laudable

d) Undeserving of praise

16. Reinforce (..To deal with stress will be reinforced)

a) Tear down

b) Weaken

c) Cripple

d) State only once

17. Alleviating (.. .ways of alleviating tension..)

a) Enduring

b) Humiliation

c) Enlightening

d) Worsening

Directions (Q.18-20) Choose the correct words or a phrase that means the

same:

18. Exercise control

a) To manage the impact of stress

b) To control exercise

c) To work on one's exercise regime

d) To strengthen reflexes

19. In its own right

a) On its own merit

b) Bending towards right

c) Standing straight

d) Have no proof of

20. Take a heavy toll

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a) take a good shot

b) Pay heavy tax

c) Take a beating

d) Come down heavily on

Answers

1. a 2. c 3. d 4. e 5. B 6. b 7. e 8. a 9. c 10. D 11. d 12. d 13. d 14. b 15. D 16. b

17. d 18. a 19. a 20. C

407

EXERCISE- 10

In broad term, biotechnology is the use of cells and organisms such as yeast and

bacteria to produce a yeast cultures for over 6,000 years to make leavened bread

and to produce alcohol by fermenting vegetable matter. In the past few decades

bacteria have been put to increasing use such as for sewage treatment and for the

manufacture

of antibiotic drugs. But the scientific advances in the early 1970s permitted the

scientists to manipulate cells and micro-organisms in a precise manner causing them

to manufacture substances that they would not normally produce and enhancing

their ability to perform important biological tasks. Genetic engineering can be

defined as the laboratory technology used to modify the hereditary code of a living

cell, giving it new or unique abilities. Biotechnology requires the involvement of

chemical engineers since it utilizes a collection of industrially-based production

techniques. The output of this technology includes many human and animal health-

care products, agricultural chemicals, specialty chemicals, and even foods and

beverages.

The common denominator is the use of biological systems to produce these

products. This is usually accomplished through fermentation, which can be defined

as the process of growing a culture of microorganisms in a nutritive medium to

produce a useful and desirable product. Scientists have turned recombinant DNA

technology from a scientific feat of the highest order into what is now almost a

routine laboratory procedure. With highly specialized enzymes, researchers can snip

individual genes out of the mass of DNA that controls the heredity of living

organisms. The gene containing the code that directs biological processes can then

be implanted in other organisms such as bacteria. By growing these bacteria in

vats, scientists can now obtain large amounts of hormones and enzymes that exist in

minute quantities in the human body.

408



given below:

1. What are the fields in which bacteria can be used commercially?

a) Human and animal health care products

b) Agricultural chemicals

c) Specialty chemicals

d) Foods and beverages

e) All of the above

2. Fermentation means...

a) Using bacteria to produce alcohol

b) Growing micro-organisms for the purpose of finding cures for diseases

c) A process of growing a culture of micro-organisms in a nutritive medium to

produce a useful product

d) A process which yield an undesirable product


3. What basic material controls the heredity of living organisms?

a) Computer enzymes

b) Scientists have yet to discover it

c) A combination of enzymes and hormones

d) DNA - e) All of the above

4. What do you understand by gene?

a) It is the basic building block of a living thing

b) It is responsible for deciding the features and characteristics of a living being

c) It comprises masses of DNA

d) All of the above


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5. The expansion of DNA

a) Deoxy ribo Nucleic Acid

b) Delinear Nucleic Acid

c) Deoxy ribo Nitric Acid

d) De-Nucleic Amino Acid


6. Bio technology requires the involvement of chemical engineers because

a) It utilizes a collection of industrially based production techniques

b) Because genetic engineers and chemical engineer study similar subjects

c) Employment opportunities are better

d) Technology can help biologists

e) A combination of (b) (c) and (d)



7. Leavened (To make leavened bread)

a) Sliced bread

b) Bread from fermented dough

c) Flavored with mint leaves

d) Wrapped in leaves

8. Hereditary (To modify the hereditary code)

a) Inherited

b) Traditional

c) Of the family

d) Genetic

9. Technique (Industrially based production techniques)

a) Skill

b) Method

c) Practice

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d) Modus operandi

10. Specialty (specialty chemicals)

a) Area of expertise

b) Forte

c) Specific

d) Department

11. Denominator (The common denomination is...)

a) Divisive factor

b) That which is similar

c) The lowest factor

d) Factor in the chemists formula to grow enzymes

12. VAT (By growing these bacteria in vats...)

a) Value added tax b) Closed room

c) In the right environment

d) Container

13. Nutritive (In a nutritive medium)

a) Health food

b) Waste matter

c) The right environment for the culture to grow

d) Vitamins, minerals & carbohydrates

Directions (Q. 14-16) Choose the word which has the opposite meaning to


14. Precise (To manipulate... in a precise manner)

a) Concise

b) Stretched

c) Incorrect

d) Unclear

15. Enhance (enhancing their ability)

a) Augment

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b) Subtract from

c) Decrease

d) Boost

16. Unique (giving it new or unique abilities)

a) Matchless

b) Irreplaceable

c) Exceptional

d) Common

Directions (Q.17-18) Choose the correct words or a Phrase that means the

same

17. In broad terms

a) In brief

b) Non decipherable terms

c) Long terminologies d) In detail

18. Of the highest order

a) As ordered by the High court

b) As ordered by the Supreme Court

c) Superior method d) On the top

ANSWERS

1. e 2. a 3. d 4. d 5. A 6. a 7. b 8. d 9. b 10. C 11. b 12. d 13. c 14. d 15. C 16. d

17. a 18. C

412

EXERCISE – 11

There has recently been much talk about derivatives. Most has been favorable, but

there has been some concern about threats which the increased use of derivatives

might pose to the stability of the banking system. Outside financial markets,

derivatives remain little-known tools. Derivatives may be defined concisely as

"synthetic versions of established instruments, designed to give more flexibility than

buying or selling the underlying product." Fortunately, the concept is somewhat

simpler. A basic example of the use of a derivative involves a farmer intending to

sell, say, one tonne of his wheat the following September. He does not, of course

know what the prevailing price will be then, and he is keen to fix the terms now, as

he fears a collapse in prices.. Naturally he may try to find an interested party to buy

now at a fixed price, but it could be costly and time consuming to find a buyer.

Further, he may not be certain that the price he is offered is a fair reflection of the

market price. An alternative would be to fix his price via the futures market. A

future is an agreement to buy or sell a standard quantity of a specified asset at

some fixed future date at a price agreed today. By buying a future (in jargon going

long), a participant agrees to buy the underlying commodity by selling (going short),

he agrees to sell. In the farmer's case, he may sell one contract of the September

wheat future on the London Futures and Options Exchange (FOX), thereby locking-in

his selling price. Note that, going back to the earlier definition, the futures contract is

the synthetic instrument, wheat the underlying commodity and the seller (or buyer)

gains flexibility through being able to trade the derivative through an established

market. By using the futures market, the farmer is able to eliminate his financial

exposure to a fall in prices.

Financial derivatives and hedging Commodity futures are good examples of early

derivative products. In London these have been traded on a formal basis since late

last century. However, it is derivatives in financial instruments that have grown

rapidly over the past 10 years or so. All major financial markets have associated

derivative products, including foreign exchange, interest rates, bonds and equities.

Derivative instruments include futures, options and swaps; by-products include

413

forward rate agreements, caps, floors, collars and swapions. Even more complex

hybrid derivatives exist. In the UK the principal exchange where financial futures are

traded is LIFFE (the London International Financial Futures and Options Exchange).

LIFFE offers a market place for interest rate (in various currencies), bond and equity

index futures and also options on these futures and individual equity stocks. Interest

rate futures can be used in risk management in ways similar to the use of

commodities futures. Short selling is an example of a contract-actively traded

contract on LIFFE-with which corporate or bank treasuries can hedge exposure to

fluctuations in UK short-term rates of interest. Specially, the underlying product is

three month sterling LIBOR rates, and 12 contracts are available to hedge rates on

specific date in each March, June, September, and December over the next three

years. There is a market-determined price for each contract (each unit or 'lot'

represents a nominal sum of $500,000) equivalent to the market's view of what

three-month LIBOR will be at these times.

This is expressed as 100 minus the implied interest rate. For example, a market view

that interest rates will be 5.2 per cent in September this year will be reflected in the

price of the September 1994 short sterling contract equalling 94.8.The value of the

contract will vary inversely with the level of rates implied by the market. The

following gives a basic example of how short sterling can be used in managing

interest rate risk. A treasurer has borrowed $50 m for one year and his interest

payments are based on the prevailing level of three month sterling, LIBOR rolled

over every three months, commencing in March. By selling 200 'lots' in each of the

March, June, September and December contracts, the treasurer effectively fixes his

net outlay.

Although his interest rate payments would be greater if rates rose, this would be

offset by a fall in the corresponding value of his futures of which he is short. Of

course, a stream of income receipts could be hedged by buying instead of selling the

futures. In practice, futures will rarely be perfect hedges for interest rate risk since

the dates of the interest payments will usually not coincide precisely with the dates

to which the futures contracts relate.

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Directions (Q.1-10): Read the passage carefully and answer the questions

given below:

1. What is the likely threat the banking system may face by increased use of

derivatives?

a) The system does not face any kind of threat

b) It poses a threat to the stability of the banking system

c) The threat is real only outside financial markets

d) The threat is not likely to surface in the immediate future

2. According to the author the main reason for the emergence of derivatives is:

a) It is a popular financial tool

b) It solves the problem of finding interested parties to buy commodities

c) It affords more flexibility in buying and selling a derivative than the underlying

product

d) The seller can make accurate prediction as far as rates are concerned

3. The above passage suggests that "going long" means:

a) Going long lengths to ensure a fair price for a commodity

b) It means that by buying a future a participant agrees to buy the underlying

commodity, on a fixed future

date and at a fixed price

c) It is the opposite of going short

d) It means to plan in advance

4. What is the benefit of a derivative?

a) The risk of fall in prices is eliminated

b) The participant gets an insurance cover for any price fluctuation

c) In future it will be the only way of trading

d) It guarantees an easy way of finding buyers or sellers

5. What is FOX?

415

a) It is the banking system's equivalent of a BULL or a BEAR.

b) Futures and Options Exchange

c) It is the acronym for the London Futures and Options Exchange

d) Foreign and Overseas Exchange

6. The facilities afforded by LIFFE are:

a) It offers a market place for interest rate

b) Offers facility of bond and equity index futures

c) Offers options on these futures and individual equity stocks

d) All of the above

7. What is hedging?

a) Shirking one's responsibility of carrying out an assigned task

b) A process by which one can predict interest rate changes

c) A process by which interest futures can be used in risk management

d) It is a process by which loss arising out of interest rate changes is eliminated

8. Which of the following is not an informal meaning of the word hedge:

a) Beat around the bush

b) to protect

c) Be evasive

d) Follow relentlessly

9. Which word is not a synonym of the word 'hybrid?'

a) Amalgam

b) Composite

c) Mixture

d) Pure-bred

10. Which word is not an antonym of "synthetic?"

a) Regular

b) genuine

416

c) natural

d) artificial

Directions (Q.11-15): Choose the word which has the same meaning as


11. Synthetic (synthetic versions)

a) Spurious

b) Fake

c) Concocted

d) Manufactured

12. Reflection

a) Sign

b) Image

c) Thought

d) Source of shame

13. Jargon

a) Dialect

b) Techno speak

c) Slang

d) Unfathomable language

14. Lock in

a) Store in a locker

b) Keep under lock and keys

c) Store in a air tight box

d) Decide on after a period

15. Off-set

a) Counteract

b) Make amends for

417

c) Compensated

d) None of these



passage

16. Formal

a) Informal

b) Casual

c) Irregular

d) Incorrect

17. Complex

a) Apparent

b) Understandable

c) Simple

d) Plain

18. Prevail

a) Triumph

b) Succeed

c) Past

d) Pile on

Directions (Q. 19-20) Choose the correct words or a phrase that means the

same

19. Grown rapidly

a) By leaps and bounds

b) Irregularly

c) Gained a lot of weight

d) Grew taller

20. Suggest a title for the passage

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a) Derivatives - valuable financial tool

b) The futures market

c) Risk management

d) Hedging through the banking system

ANSWERS

1. b 2. C 3. c 4. A 5. b 6. d 7. d 8. D 9. d 10. d 11. d 12. B 13. c 14. d 15. c 16. A

17. c 18. a 19. a 20. a

419

EXERCISE -12

Looking at India, one could conclude that corruption in the Indian environment has

been due to the existence of excessive controls and unfulfilled demands for goods

and services. We have come to accept that things get done on the basis of one's

connections and contacts rather than merit, and that contacts or premiums provide

access to goods and services in short supply. In this scenario, it would really take

some self-restraint to remain within one's self-imposed set of parameters. Yet, it is

possible. As liberalization in our economy takes place, open competition will lead to

more goods and services and decisions would be made on product competitiveness

and quality of service. The need for contacts and the payment of premiums will

diminish. As an example, many potential foreign investors in the past looked for

Indian partners who had the ability to obtain an expeditious clearance in Delhi for a

project.

It appeared secondary whether that partner was the right one for a long-term

business relationship. Today, there has been a noticeable change. Potential foreign

investors are now seeking Indian companies which have some specific attribute or

strength to bring to a long -term business relationship. This last year in India has

been an interesting one, we have seen enormous fortunes being made in the stock

market. There has been the scam, which displayed how the "system could be

beaten". We have seen a violent, almost knee-jerk reaction to the scam and have

witnessed, with some surprise, names of well known personalities as also a number

of organizations being associated directly or indirectly with these "grey" events. All

of this has, resulted in a revival of effort to conduct business on a higher ethical

plane and to be more conscious of maintaining respectable values.

There is now an ever-increasing concern for a business Organization to be seen as

a good corporate citizen and the trend is towards publicizing the contribution of the

organization in its entirety, i.e. its contribution to the community, quality of life, the

environment, rural up liftment, etc, rather than merely being concerned about

profitability. Several international companies are introspecting on how they have

420

been conducting their businesses and some have created codes of conduct to which

they expect their employees to conform, Some of our corporations could do a similar

exercise of introspection and Endeavour to set out a code of conduct for the

Organization.

Finally, the level of business ethics or the values which are shared, reflect the

examples set by the people at the top. Clearly, it is the chairman or the chief

executive of the Organization who becomes the role model for the Organization in

terms of his ethics and values. There is often hypocrisy and a difference between

stated and practiced ethics, but, as in so many other cases, public evaluation is

always based on. Practiced action rather than the stated. To be a global player calls

for a much higher level of interaction between Indian corporations and their

counterparts abroad in conducting business overseas. It is important that Indian

industry as a whole is seen to conduct its business to ethical standards which are

accepted the world over.

There are some countries in the developing world which have a reputation for a very

low level of business ethics, where commitments and assurances mean little. Clearly,

such countries will remain as backward Third World countries, held at arm's length

by the global community. India should always Endeavour to be above such nations.



given below:

1. What according to the author are the reasons for corruption in India?

a) Increasing population

b) Increasing gap between the haves and have-nots

c) Excessive controls in the economy and acute shortage of goods and services

d) It is an accepted way in the Indian environment

2. What is the criterion that potential foreign investors are now looking at, while

seeking Indian companies?

421

a) Companies that had client with the powers - that be in Delhi, were favored

b) The company should augur long-term business relationship

c) The company's contacts and connection

d) The companies should have some specific attribute of strengths to bring to a long

term business relationship

3. According to the author, what has been the approach of business organizations

after the revelation of the "scam"?

a) Organization are more discreet, if involved with 'grey' events

b) Business organization now conduct business on a higher ethical plane

c) They are conscious of maintaining respectable values d) (b) and (c)

4. What is the role of the Chief Executive of the organization in the context

mentioned in the passage?

a) He strives to increase profitability of the company

b) Making certain that the company does not get involved in scams

c) Becoming the role model for the organization in the areas of his ethics and values

d) The author does not specify in the passage

5. What is the need for observance of high standards of ethics in business?

a) The value of company stocks in the market escalates

b) They will be able to avail of large amounts of financial aid

c) They earn a "corruption-free" tag

d) Business organizations can then become global players

6. What are the qualities that contribute towards organization becoming good

corporate citizen?

a) Responsible contribution to the community

b) Efforts to improve the quality of life and environment

c) Significant contribution to rural upliftment

d) To absolve themselves of the accusation of being solely profit making

organizations

422

e) All of the above

7. What is the word of caution that the author extends to the Indian industry as a

whole?

a) To make sure India would try to be above nations who held commitments and

assurances as meaning little

b) To stay away from scams

c) To exercise caution while interacting with their counterparts abroad

d) That India is deemed to be a Third World country.



8. Scenario

a) Storyline

b) Summary

c) Scheme of things

d) Design

9. Diminish

a) Depreciate

b) Dim

c) Dull

d) Abbreviate

10. Potential

a) imminent

b) Prospective

c) Threatening

d) Quality

11. Introspect

a) Check out

423

b) Check for clues

c) Look into d) Circumspect

12. Hypocrisy

a) Hyperactive behavior

b) The act of taking an oath

c) Deceit

d) Circumspect

13. Expeditious

a) Tedious b) On the sly

c) Done with speed and efficiency

d) None of these

14. Revive

a) Stiffen

b) Slacken

c) Faint

d) To restore to life

15. Ethics

a) Immortality

b) Morality

c) Indiscipline

d) Indecent

16. Stated

a) Proclaimed

b) Reinstated

c) Unspoken

d) Undone

424

17. To conform

a) To turn the cover

b) To look sharp

c) To pull strings

d) To toe the line

18. To endeavour

a) To hit the nail on the head

b) To do one's utmost

c) To leave no avenue unexplored

d) To leave no stone natured

19. Knee-jerk reaction

a) Painful reaction b) Automatic reaction

c) Reminiscent of the doctor

d) An action of involuntarily jerking the knees when provoked

20. Held at arm's length

a) To be wary

b) Separated by an outstretched arm's distance

c) To keep off an undesirable person

d) To ignore

ANSWERS

1. c 2. d 3. d 4. C 5. d 6. e 7. a 8. c 9. a 10. b 11. c 12. C 13. c 14. d 15. b 16. a

17. d 18. b 19. b 20. a

425

EXERCISE- 13

Creativity is not ability at all, but a whole cluster of abilities. Let me describe the

most important ones. The first is called fluency. It measures a person's ability to

come up with a number of solutions to a given problem. For example, if I ask a

group of persons to list the number of uses of bricks, some might come up with 5

uses, others with 15 to 20. Those that come up with a large number of uses would

be called ideationally fluent persons. Ideationally fluent persons tend to come up

with a greater variety of solutions

as well as with a larger number of unusual solutions than persons that are

ideationally not fluent. The ability to provide a large variety of solutions, to respond

to a problem from a variety of viewpoints, and to use a variety of approaches in

problem solving is another important ability. It is called flexibility. In the brick

example, one person may list several uses of bricks, but all these uses may be

connected with its use as a construction material - built houses, built bridges, built

wells, built walls, etc Another person may list a large variety of uses such as bricks

as weapons, as stepping stones in mud, as doorsteps, as engraving material as

supporters for shelves etc.

The third creative ability is originality, or the ability to come up with unusual but

appropriate responses. For bricks, their use as hiding places for jewellery, or their

use as dumbbells, or their use as substitutes for pillows by placing them under the

mattress may be considered unusual, and therefore, original responses. A related

ability is the ability to come with novel relationships between ideas or two frames of

reference. This is the sense in which Koestler understands creativity. It is the faculty

that helps an Edison leap to the realization that what you need to turn electricity into

light is not a good conductor of electricity as his contemporaries thought, but a bad

"conductor -a new relationship between current, impedance and incandescence.

And finally, it is the faculty that helps a poet to see neckties as the tethers of

civilizations, or rivers as arteries of God, or a dewdrop as the abode of Vishnu. A

fourth ability is to notice the unexplained, the unsatisfactory, or the incongruent - in

other words, the ability to sense problems. Scientists often dismiss data inconsistent

426

with their pet theories as "noise". It is the inquisitive scientist, curious about "noise"

that sometimes makes remarkable discoveries. Alexander Fleming, the discoverer of

penicillin is a case in point. Many scientists had observed that fungus forming in a

biochemical culture inhibits the growth of bacteria. But they failed to grasp the

significance of this "noise" in their experiments. It was Fleming who wondered about

this and ultimately saw the significance of this for treating infections.

A fifth ability is the ability to go to the roots of a phenomenon by unraveling its

causes, and equally, to visualize its consequences. This, of course, is a vital

ingredient of scientific creativity. But I suspect it may be equally important in artistic

creativity, where the ability to discern the mental associations of an object, and its

potential as a metaphor in a work of art may be vital - to see, for example, modern

life as a spiritual waste land, as in Eliot's The Waste Land.

Since death reminds us of tears, and tears of dewdrops, to use dew to convey pain

at the death of a dewy child as in the following lovely words: Dew evaporates and all

our world is dew- so dear, so fresh, so fleeting. The ability to elaborate on a theme

has also been recognized as a significant creative ability. It is the difference between

a legend and Shakespeare's dramatic version of it, or an insight that capitalist

economies get stuck with recessions and the full-fledged Keynesian general theory

of economic equilibrium, or the idea that man has considerable creative potential

and full- fledged training programme for increasing creativity, or the difference

between the notes of a raga and its alaap. The ability to elaborate is indispensable in

putting a creative idea to work. An ability of considerable importance is the ability to

go behind the surface features of a- problem, and see what the "real" problem is. A

group of psychologists called gestalt psychologists have held it be mainly responsible

for producing original insights. Consider the problem faced by an ambulance,

blocked on a long narrow bridge by a flock of sheep. So long as one defines the

problem as how to get the ambulance to

overtake the sheep, there would be no really effective solution. It is only when one

defines the problem as one of getting the ambulance ahead of the sheep that a

427

solution at once dawns - the flock can be turned around and driven past the

stationary ambulance.



given below:

1. How many aspects of creativity have been mentioned by the author?

a) 4

b) 3

c) 5

d) 7

2. "Books" could be used for reading and nothing else"-this idea could mean that

one is

a) Unoriginal in thinking

b) Straightforward

c) a book worm

d) Very creative

3. In the above passage the word "noise" refers to: -

a) Static during transmissions

b) Doubts raised by non-believers about scientific theories

c) Data inconsistent with pet theories


4 To what ability is the discovery of penicillin by Alexander Fleming attributed by the

author?

a) The ability of having well defined goals

b) The ability to sense problems, and to notice incoflgruent features

c) Sheer grit and perseverance

d) He had strong intuitions or gut feelings

428

5. Does the author restrict the ability of going to the roots of a phenomenon and

visualizing its consequences, to only scientific creativity? If not, specify which other

fields can benefit from this ability.

a) The author is specific that it applies to scientific creativity only

b) He has not clearly indicated any other field

c) He extends the ability and potential in artistic creativity as well

d) Metaphysics can benefit from this ability

6. According to the gestalt psychologists what ability is needed for producing original

insights?

a) The ability to go beyond the surface features of a problem and see what the

"real" problem is

b) The ability to delegate assignments to original thinkers

c) The ability of considering a problem as a "non-problem"


7. What is the importance of the ability to elaborate on a theme?

a) It is essential to develop qualities of a good essay writer

b) It has been recognized as a significant creative ability and is indispensable for

putting a creative idea to work

c) It is distinguishing hallmark of successful novelists

d) It helps in honing of oratory skills

8. Which ability does the author describe as superior among the creative abilities?

a) All of them b) None of them

c) Does not specify

d) Depends on the circumstances

9. Select a suitable title for the passage

a) Creativity and Mankind

b) Creativity-the need of the modern world

c) The component abilities of creativity

429

d) Creativity-we are all born with it

Directions (Q.10-14): Choose the word which has the same meaning as


10. Ideational (ideationally fluent persons)

a) Abstract

b) Bright

c) Hurdle

d) Full of ideas

11. Impedance (Impedance and incandescence)

a) Total resistance

b) Obstruction

c) Hurdle

d) Defect

12. Contemporary (As his contemporaries thought)

a) Trendy colleagues

b) People in the same period

c) Leader

d) Room mates

13. Unravel (By unraveling its causes)

a) Mystify

b) Liberate

c) Disengage

d) Find out

14. Wasteland (as a spiritual wasteland)

a) Garbage dump

b) Swamp

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c) Barren and desolate

d) Desert

Directions (Q.15-18): Choose the word which is the opposite meaning to

the word given in the Passage

15. Fluent (The first is called fluency)

a) Glib

b) Hesitant

c) Inarticulate

d) Inexpressive

16. Incongruent (to notice the incongruent)

a) Relevant

b) Unclear

c) Incompatible

d) Inconsistent

17. Fleeting (so fresh, so fleeting)

a) Momentary

b) Ephemeral

c) Eternal

d) Transient

18. What is a Haiku?

a) Lyrical verse

b) Sonnet

c) Ode

d) Elegy

Directions (Q.19-20): Choose the correct words or a phrase that means

the same

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19. To go to the roots of:

a) Start from the basics

b) Make a careful study

c) Getting down to brass tacks

d) To get an overview of

20. To go behind the surface

a) Accept at face value

b) Make no presumptions

c) Read between the lines

d) Concentrate on physical aspects

Answers

1. d 2. a 3. c 4. B 5. c 6. a 7. b 8. B 9. c 10. a 11. a 12. B 13. d 14. c 15. c 16. A 17.

c 18. a 19. a 20. C

432

EXERCISE- 14

ASSET AND LIABILITY MANAGEMENT

In the context of the changes taking place in the financial markets, risk management

is emerging as an important area which needs a great deal of attention. Banks have

traditionally concentrated on asset management, treating themselves purely as

deposit takers. Funds supply was regarded as a factor beyond their control. Asset

management was governed by the principle that liquidity and profitability are

opposing considerations.

Risks and returns were treated as two inversely related variables influencing the

composition of assets. The main objective under such a framework was to distribute

the assets in such a way that for a given level of liquidity, the return was maximum.

This approach is being substituted in a number of banks by a, more comprehensive

approach of asset-liability management which is a continuous process of planning,

organising and controlling asset and liability volumes, maturities, rates and yields.

The objective is to avoid the mismatch of asset liability characteristics and liability is

no longer treated as given. The liability structure can also be modified in tune with

the asset structure that is desired. As the kinds of risks and the frequency of

occurrence of such risks have increased dramatically, both liabilities and assets are

subjected to interest rate risks.

The asset quality of loans can be influenced by factors which go beyond the control

of the lenders. It is in this context that provisioning for loan losses and need for

adequate capital become important. In terms of asset-liability management, portfolio

managers look at the variable and fixed components both under assets and

liabilities. The most important element in the process of asset-liability management

is to build into the analysis of possible future behaviour of variables such as interest

rates. Thus, the asset-liability management is a process and it must be practised in

an on-going manner. Management must regularly forecast assumptions and develop

contingencies to accommodate changes expected.

Pricing of risk is an important area requiring prime attention. Banks have to move

away from the relatively unscientific practices of pricing risks based on perception of

customers to more scientific practice based on technical assessment of the risks

433

involved while ensuring transparency. Embracing scientific risk management

practices will not only improve banks' credit management processes and increase

profits, but also enable them to nurture and develop mutually beneficial relationships

with customers.

In recent years, financing infrastructure has become a challenge to banks. In view of

the fact that financing of infrastructure involves large funds to be committed for long

periods of time, banks could face asset liability mismatches. In order to meet the

financing requirements of infrastructure and other large investment projects, banks

need to develop the necessary expertise.


carefully and answer the questions given below.

1. What feature is emerging as an important area of concern in the face of the

changing financial market?

a) Asset management

b) Customer satisfaction

c) Risk management

d) Liability management

2. Risks and returns are two directly related variables influencing the composition of

assets

a) True

b) False

c) not specified

d) Subject to individual cases

3. What is meant by asset and liability management?

a) It involves governing principles of liquidity and profitability for successful

management

b) Successful distribution of assets for a given level of liquidity

434

c) It is a continuous process of planning, organizing and controlling asset and

liability volumes, etc

d) It involves careful protection of assets and liabilities from interest rate risk.

4. What does he author say regarding assumptions?

a) These are static

b) Assumptions have to be forecast regularly and contingencies must be developed

to cope with them.

c) Assumptions play a negligible role in asset liability management exercise.

d) None of these

5. What does the author claim to be the most important element in the process of

asset liability management?

a) Adopting relevant contingencies to accommodate changes

b) Recognize it as an on-going process and adapt accordingly

c) Having an eye on the variable and fixed components

d) To build into the analysis of possible future behavior of variables, such as interest

rates

6. What benefits does the author cite with regard to embracing scientific risk

management?

a) It will improve bank's credit management processes

b) It will increase profits

c) It will enable them to nurture and develop mutually beneficial relationships with

customers

d) All of the above

7. Does the author spell out the components of technical assessment in the

passage?

a) Yes

b) No

c) Vaguely.

435

d) Can't say

8. Why does the author say that financing infrastructure is a challenge to banks?

a) It curtails the growth of the bank

b) It shifts the focus from previously set goals

c) Asset-Liability mismatches




9. Portfolio

a) Asset

b) Briefcase

c) Collection of an artist's work

d) Holdings

10. Contingency

a) Prediction

b) Emergency

c) Preparedness

d) Future event

11. Prime

a) Pinnacle

b) of chief importance

c) Highest quality

d) Immediate

12. Infrastructure

a) Foundation

b) Groundwork

c) Support

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d) Structure needed for operation

Directions (Q. 13-18): Choose the word which has the opposite meaning

to the word given in the passage:

13. Comprehensive

a) all embracing

b) Selective

c) Compendious

d) Complete

14. Nurture

a) Tend

b) Nourish

c) Neglect

d) Care for

15. Frequently

a) Recurring

b) Irregular

c) Haunt

d) Reiterate

16. Transparency

a) Make all facts available

b) Maintain secrecy

c) To hide nothing

d) be clear in one's dealings

17. Expertise

a) Adroitness

b) Possess know - how

c) Dexterity

d) Amateur

437

18. Mismatch

a) Incompatible

b) Unlike

c) Suitable

d) Different

Directions (Q.19-20) Choose the correct words or a phrase that means the

same

19. Beyond one's control

a) Victim of circumstances

b) Out of hand

c) Going with a flow

d) Helplessness

20. In tune with

a) In perfect congruence

b) In perfect harmony

c) In sync

d) Rhythmic

ANSWERS

1. c. 2. b 3. c 4. B 5. d 6. d 7. b 8. C 9. a 10. b 11. b 12. D 13. b 14. c 15. b 16. B

17. d 18. c 19. b 20. a

EXERCISE- 15

Challenges for the future and possible Policy Directions

438

What is the future of science and technology in India? Against the above

background, let me now turn to some of the challenges and burning questions of the

future. From rather long menu of issues, I shall largely deal with two issues in

particular.

Effective Patent Laws and Intellectual Property Rights

I have already pointed out that innovative activities often turn out to be risky from

the stand-point of the financier, existence of an effective and speedy patent-legal

framework goes a long way to solve the incentive problem associated with any

innovative venture. Though the Indian Patent Act, 1970 was indeed a breakthrough

from the earlier archaic Indian Patent and Design Act of 1911, still much needs to be

done. The following example may illustrate the point. During 1994, whereas in India

4,000 patents were filed, China in the same year had 70,000 patents. After all, a

slow process of patenting not only hurts the interest of the innovator but also

discourages the potential ones. Existence of loose patent laws or its violation, like

those prevalent in software piracy, thus, makes me extremely anxious.

Nevertheless, as a far-reaching extension to above argument, the global regime

represented by trade related intellectual property rights (TRIPS) tilted the balance of

benefits of innovation in favour of the private innovator. As a signatory to the 1994

Uruguay Round of Multilateral trade negotiation of the then General Agreement of

Tariff and Trade (GATT), India is-bound by the regulatory framework of the recently

created World Trade Organization (WTO). This may have consequences on the

adopted modes of industrial research in India like imitative research or reverse

engineering. We need only to stress more innovative research but also to develop

the intermediaries like patent agents and patent attorneys, who will bridge the gap

between the market and the scientists. This apart, as the Draft Ninth Plan pointed

out, we need to take new initiative to "secure a more favorable deal at the

impending review of the TRIPs agreement in the WTO". This is going to be a serious

challenge of the future.

The Role of the State in Technological Development.

439

What is the role of Government in advancement of science and technology up

gradation in a liberalized market-friendly atmosphere? At this point of time, the issue

may apparently seem to be old-fashioned. Often in popular parlance, liberalization is

equated to a withdrawal of state from the economic domain. However, science and

technology is a field where' such popular notion may turn out to be fallacious. It is

widely argued that there are three sources of market failure, viz., indivisibility,

uncertainty and externalities. Knowledge generating activities like R&D suffer from

all three types of market failure.

Moreover, when there is a wedge between private and social profitability, like that

existent in pure research, private finance may not be forthcoming. Thus, even in a

deregulated regime the state will have three specific and selective roles in fostering

science and technology, viz., financier of fundamental research, provider of

infrastructure, and regulator of property rights. The Approach Paper to the Ninth

Five

Year Plan (1997- 2002) rightly pointed out, "Experience of many developing and

industrialised countries suggests that a rapid acceleration of industrial technology

development calls for a deliberate 'strategy', in the sense that it requires the

Government to coordinate and guide an essentially market driven process. Free

markets suffer from various kinds of 'market failures'. They may not throw up the

appropriate amounts of infrastructure, skill, information and institutional support,

and mere exposure to market forces, while getting rid of inefficient policies, may not

suffice

to create the technological dynamism that continued industrial growth needs".


carefully and answer the questions given below:

1. What does the author recommend to solve the incentive problem?

a) Heavy cash awards

b) An effective and speedy patent legal framework

c) Government subsidies on inventions

d) Approved financiers to facilitate innovative activities

440

2. What reason do you attribute to the fact that China filed 70000 patents to India's

4000 in a given year?

a) The Chinese are a more creative lot

b) Chinese govt is eager to file more patents as compared to other countries

c) India suffers from a slow process of patenting

d) Indian Govt discourages potential inventors

3. What are the consequences of the regulatory frameworks on the adopted modes

of industrial research in

India?

a) It reflects directly on innovative research

b) Consequences are likely to affect imitative research or reverse engineering

c) Exerts an unfavorable effect on private innovators


4. What according to the author is going to be a serious challenge, with respect to

the Draft Ninth Plan?

a) To secure grants for finding research

b) To make India a prominent player at trade related meets

c) To secure a favorable deal at the impending review of the TRIPS agreement in

the WTO

d) International frameworks to favor Indian patent laws and Intellectual property

Rights

5. Who are the important entities that play a significant role in the evolution of

patents?

a) Patent agents, patent attorneys and scientists

b) Government agencies and financiers

c) Scientific advisors working in co-ordination with private innovators

d) The passage does not specify

441

6. What stand does the author take with regard to knowledge generating activities

like R&D?

a) That not much is done by the state to promote R&D

b) It is difficult to find financiers - private or state owned

c) It augurs well for the country's knowledge management if there is non-

interference by the government

d) He maintains that they are bound to suffer from the three sources of market

failure, namely indivisibility, uncertainty and externalities.

7. According to the Approach Paper to the Ninth Five Year Plan, what kind of a role

is suggested for the

state as far as fostering science and technology is concerned?

a) Fostering foreign collaborations

b) Not to adopt any specific strategy

c) Three specific roles, namely financier of fundamental research, provider of

infrastructure and regulator

of property rights

d) All of the above



8. Innovate

a) Modernize

b) invention

c) venture

d) Innumerable

9. Standpoint

a) a point that stands apart

b) points out

c) a point of view

d) stand still.

442

10. Archaic

a) Primitive

b) very cold

c) Place where historical documents are stored

d) Modern

11. Strategy

a) Layer of rock

b) long-term plan

c) stray struggle

12. Domain

a) Field of thought

b) dominate

c) domicile

d) dominant



13. Liberalized

a) Generous

b) liberty

c) enslaved

d) tightened

14. Dynamism

a) Static

b) dynamite

c) dynamic

d) dormant

443

Directions (Q.15-20) Choose the correct words or a Phrase that means the

same

15. 'Burning Question of the future' means

a) a question that burns in the future

b) an important Question that burns

c) that which needs prime attention

d) a current problem of the present

16. 'to bridge the gap' refers to

a) build a bridge to cover the gap

b) to bring two entities closer to each other

c) make efforts to overcome short-comings

d) to widen the gap

17. 'rapid acceleration' means

a) Accelerate rapidly b) Show great change

c) Accelerate towards progress

d) Tremendous speed

18. 'to get rid of' means

a) to destroy something permanently

b) to do away with something

c) make do with something else

d) feel totally helpless

19. ' R & D' refers to

a) Research & Development

b) Research & Dynamism

c) Research & Dominancy

d) Research & developing

444

20. Another suitable title of the passage could be

a) TRIPS

b) Intellectual property Rights

c) Liberalized market environment

d) Future of science and technology

ANSWERS

1. b 2. c 3. b 4. c 5. A 6. d 7. c 8. a 9. c 10. A 11. b 12. a 13. d 14. a 15. C 16. b 17.

b 18. b 19. a 20. d

445

EXERCISE- 16

Re-engineering in Indian Banking

The spectacular growth witnessed in recent times in the banking industry has led to

global competition, rapid and radical technical innovation and major shifts in

attitudes about work, employees and leadership. With the opening up of the

economy and policy of liberalization, new private sector banks have come into

existence with advanced or sophisticated technological set-up. This has further

intensified competition. The changes witnessed have no historical precedent. Change

is one of the foremost issues today-the other two being competition and customer.

On the one hand, change represents growth, opportunity and innovation and on the

other hand, it represents threat, disorientation and upheaval.

We are truly in turbulent times. Organizations will have to adapt to crisis by

maximizing their strengths as change occurs. Change has become both pervasive

and persistent. With globalization of economy, corporations face a greater number of

competitors, each one with product / service innovations. Rapidity of technological

change / product life-cycle have profound influence on the existence of corporations.

Executives think that their corporations are equipped with effective change-sensing

radars but really not. Change is seldom easy. Further, change can neither be rushed

nor dragged out. The various phases of the reengineering process- preparing,

planning, designing and evaluating are outlined in this paper.

Organizations are influenced by internal and external factors. Internal factors include

the range of products/ services centralization or decentralization of operations etc.

and external factors include competition, government regulations or changing

economic conditions. Internal factors of organizational change have a paradoxical

character. The need for change is generated at all levels of the Organization, but the

responsibility for initiating change rests primarily with the management. To deal

with internal factors of change, managers must learn special skills at scanning the

environment for the elements of change that significantly affect the Organization.

446

Coming to the external factors, competition is an important factor to be reckoned

with. Government pressures usually create less anxiety than customer pressures.

Customer constitutes the second most important external influence on organizations.

Irrespective of the internal/external factors at work, the responsibility for identifying

and leading the organizational change rests with the management - particularly the

top management. It must also be ready to lead the organizations through change.

Change is slow and at times, a painful process. Many changes can be traced to

global communication, the microprocessor, new inventions, new technologies, etc.

We need to understand the two basic kinds of changes - structural and cyclical.

Structural change is radical and it is also irreversible.

It requires dismantling of old institutions, relationships, procedures and replacement

of these by new ones. But cyclical change involves a temporary change from a given

level or state. Cyclical change does not cause any irreversible alterations in the

structure of the institutions or activities in which they are occurring.


Directions (Q-l-10): Read the passage carefully and answer the questions

given below:

1. To what factor is the recent global competition, rapid and radical technical

innovation attributed to, in the above passage?

a) Sweeping reforms in policies of economic reforms

b) To the spectacular growth witnessed in recent times in the banking industry

c) Mushrooming private sector bank

d) Sophisticated technological set-up

2. According to the author, what is the dual-faced nature of change?

a) Growth and upheaval

b) Opportunity and disorientation

c) Threat and innovation

447

d) All of the above

3. "The changes witnessed have no historical precedent". This statement implies

that

a) There are no witnesses to the change in history

b) Never before in history have there been such changes

c) The changes witnessed have great historical importance


4. What is the strategy suggested by the author for organizations to adapt to

change?

a) By maximizing their strengths as change occurs

b) By being passive about the whole process

c) Adopt changes only if it is customer friendly

d) Adopt the most suitable change, according to the company's history

5. Change is seldom easy. Choose a word from the following to convey the opposite

meaning:

a) Often

b) rarely

c) always

d) never

6. Does the author feel that corporations are equipped with change-sensing radars?

a) Yes

b) No

c) Depends on the type of change

d) Depends on corporation

7. By what factors is organization influenced in re-engineering process?

a) Global competition & technical innovation

b) Internal and external factors that govern the organization

448

c) Research and Development

d) Challenge posed by competitors

8. With regard to external pressure that an organization faces, which creates more

anxiety?

a) Government pressures

b) Financial constraint

c) Customer pressures

d) Changing economic condition

9. What type of change is irreversible?

a) Structural

b) Cyclic

c) Procedural change

d) Relationship change

10. Does the author take a pessimistic or an optimistic stand about the ability of the

banking industry to

cope with change?

a) Optimistic

b) Pessimistic

c) Neutral

d) not specified in the passage

Directions (Q.ll-15): Choose the word which has the same meaning as the


11. Spectacular

a) Dramatic

b) Striking

c) Eye catching

d) Impressive

449

12. Upheaval

a) Disruption

b) Transfer

c) Mismanagement

d) Violence

13. Pervasive

a) Omnipresent

b) Penetrating

c) Distorting

d) Abnormal

14. Persistent

a) Unshakeable

b) Enduring

c) Victimizing

d) Intimidating

15. Profound

a) Thoughtful

b) Demanding

c) Great

d) Bottomless

Directions (Q.16-19): Choose the word which has the opposite meaning to the word

given in the passage:

16. Radical

a) Conservative

b) Non-conformist

c) Iconoclastic

d) Departing from tradition

450

17. Turbulent

a) Agitated

b) Calm

c) Boisterous

d) Hectic

18. Paradoxical

a) Ambiguous

b) Literal

c) Anomalous

d) Contradictory

19. Dismantle

a) Rip apart

b) Demolish

c) Extinguish

d) Build

Directions (Q.20) Choose the correct words or a phrase that means the same

20. Dragged out

a) Elongated

b) Pulled out

c) Lengthy process

d) Extricated

ANSWERS

1. b 2. d 3. b 4. a 5. C 6. b 7. b 8. c 9. a 10. C 11. d 12. a 13. b 14. b 15. C 16. a 17.

b 18. b 19. d 20. c******