Vikas 2016

(For internal circulation only)
VIKAS
A Guide for
PROMOTION TEST
(Updated till 31st December, 2015)
STATE BANK LEARNING CENTRE

BHUBANESWAR
Jayadev Marg, Bhubaneswar - 751 014
Telephone : 0674-2430290/2433593
Fax : 0674-2435486
E-mail : agmsblc.bhubaneswar@sbi.co.in
VIKAS
Second Edition : December 2015
Every effort has been made by the following trainers of the State
Bank Learning Centre, Bhubaneswar to avoid errors or omissions in
this publication. Any error or discrepancy noted may be brought to
our notice which shall be taken care of in the subsequent editions. It
is also suggested that to clarify any doubt colleagues should cross
check the facts, laws and contents of this publication with original
Govt. / RBI / SBI notifications / circulars.
Naresh Chandra Kanungo, Asst. General Manager (Training). 9437562026

Kedarnath Pattanaik, Chief Manager (Training). 9437078593
Tapan Kumar Roy, Chief Manager (Training). 9437044593
Susanta Kumar Sahu, Manager (Training). 9437063593
Jyoti Prakash Ray, Manager (Training). 9937267352
Barendra Rana, Manager (Training). 9437147593
CONTENTS
1. ORGANISATIONAL STRUCTURE 1
2. HUMAN RESOURCE 4
3. GENERAL BANKING 6
4. ADVANCES GENERAL 35
5. LEGAL ASPECTS OF BANKING 54
6. KYC & AML 64
7. PER SEGMENT DEPOSITS 70
8. PER SEGMENT ADVANCES 81
9. SME 99
10. AGRICULTURALADVANCES 113
11. INFORMATION TECHNOLOGY,
ALTERNATE CHANNELS & IS SECURITY 138
12. GENERAL AWARENESS (BANKING & FINANCE) 152
13. INTERNATIONAL BANKING 160
14. RATIONALES ON CURRENT DEVELOPMENTS 183
15. RATIONALES-TRADITIONAL 195
16. SITUATION ANALYSIS 220
17. ESSAY 244
***
ORGANISATIONAL STRUCTUE
1. 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) Gorawala b) Hilton Young Mission
c) Kelkar d) Ranganathan
2. SBI's Registered Office & Central Accounts Office is in .
a) Mumbai b) Kolkata c) New-Delhi d) Chennai
3. Corporate Head Chairman is supported in his functioning by MDs &
DMDs.
a) 2,6 b) 4,4 c) 3,6 d) 4,7
4. Find out which one is not a Business Groups that have been formed at Corporate
Centre, Mumbai.
a) National Banking Group b) Corporate Strategy & New Businesses
c) Mid Corporate Group d) None of these
5. Who is the largest non promoter shareholder in SBI
a) LIC b) Tata India Ltd c) IDBI d) ICICI
6. Which is not a Strategic Business Unit of Corporate Accounts Group ?
a) Project Finance & Leasing SBU b) Transaction Banking Unit
c) Corporate Accounts Group d) SMEBU
7. 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
8. Mid Corporate Group (MCG) primarily caters to the banking needs of Mid Corporate, with
a turnover of Rs. crore and above or whose Fund based and Non Fund
Based requirements exceeds. crore.
a) 50, 10 b) 100, 20 c) 20, 5 d) 40, 10
9. Gold Banking Business comes under .
a) MCG b) CAG c) NBG d) IBG
10. Stressed Assets Management Group (SAMG), originally set up to take over all NPAs
with outstanding of Rs. crore and above, has expanded its role to resolve
all NPAs of Rs. crore.
a) 5,1 b) 2,1 c) 10,5 d) 5,0.5
1
11. Customer Service Committee of the Board is headed by .
a) DMD & CCRO b) CHAIRMAN c) DMD & CFO d) CGM
12. Zonal office been redesigned wef 01.11.2011 is the head of Zonal Office
and his areas of supervisions are Business development, Supervision over branches,
RBOs, CPCs, Credit & NPA Management, all reconciliation.
a) DGM b) DGM (Business & Operation)
c) DGM (OPERATION) d) None of these
13. PRESIDENT OF INDIA hold % share of SBI.
a) 51.58 b) 60.18 c) 58.60 d) 41.58
14. SBI General is a joint venture between SBI and
a) IAG Australia b) GE Capital
c) SBI Caps d) Society General
15. As AMFI is to Mutual Fund, C.I.F is to Life Insurance what is it for General Insurance?
a) CIF b) Specified Person
c) Agent d) Underwriter
16. SBI cards and Payment services Ltd is a joint venture with
a) BNP Paribas b) GE Capital
c) IAG Australia d) Indian Railway
17. SBI Life Insurance is a joint venture between the State Bank of India and .
a) BNP Paribas Cardif b) GE Capital
c) IAG Australia d) Society General
18. IN SBI General Insurance Company Ltd SBI owns % of the total capital
and IAG the remaining %.
a) 55,45 b) 75,25 c) 74,26 d) 56,44
19. Which of the following is not a BPR initiative ?
a) RMPB b) Grahak Mitra c) RCPC d) IBCH
20. Grahak Miitra is positioned in________ area of the Branch.
a) Customer Area b) Cash Department
c) Employee Area d) SWO counter
21. There how many of circle of SBI in India.
a) 11 b) 12 c) 13 d) 14
2
22. WBCC stands for ?
a) West Bengal Circle Credit Committee b) World Bank Credit Committee
c) Wholesale Banking Credit Committee d) Web Banking Circle Committee
23. In charge of IT at the Corporate Centre is .
a) CGM (IT) b) GM (IT) c) DGM (IT) d) DMD (IT)
24. SBI has number of Associate Banks.
a) 1 b) 3 c) 5 d) 7
25. SBI Custodial Services Pvt Ltd is established in collaboration with
a) Society General, France b) Banca America
c) FNS, Australia d) Mc Kensy
26. Bank's customer contact centre is located in .
a) Chennai b) Hyderabad
c) Agra d) Mumbai
27. Cross Selling Department is a part of Group at Corporate Level.
a) NBG b) CAG c) RBU d) MCG
28. SBI holds 100% shares in Associate Bank.
a) SBP b) SBBJ c) SBT d) SBM
29. Corporate Accounts Group is headed by .
a) GM b) CGM c) DMD d) MD
30. There are how many strategic business units in National Banking Group ?
a) 3 b) 4 c) 5 d) 6
***
ANSWERS TO ORGANISATIONAL STRUCTURE
1. (a) 2. (b) 3. (b) 4. (b) 5. (a)
6. (d) 7. (d) 8. (a) 9. (a) 10. (a)
11. (a) 12. (b) 13. (b) 14. (a) 15. (b)
16. (b) 17. (a) 18. (c) 19. (c) 20. (a)
21. (d) 22. (c) 23. (d) 24. (c) 25. (a)
26. (c) 27. (a) 28. (a) 29. (c) 30. (c)
3
HUMAN RESOURCE
1. Who can't avail Sabbatical Leave ?

a) Part Time employees b) Contractual employees
c) Management Trainees d) All of the above
2. How much annual incentive is being disbursed to eligible children of staff pursuing
professional courses at selected elite Institutes in India ?
a) Rs 50,000/- b) Rs 25,000/- c) Rs 20,000/- d) Rs 30,000/-
3. What is the repayment period for staff under IHLS (including max. moratorium period of
24 months) ?
a) 360 months b) 240 months c) 264 months d) 384 months
4. What is the average aggregate business level in Non BPR centers for branches with
incumbency of SMGS-V as per new Categorization of branches ?
a) Above Rs 400 cr b) Above Rs 500 cr
c) Above Rs 300 cr d) Above Rs 250 cr
5. What is the new post created as per new Categorization of branches ?
a) MoD b) Service Manager c) DBM d) CRO
6. For a staff CRE Home loan interest rates will be applicable to a maximum of 3 units beyond
which interest rates and repayment terms will apply.
a) Public HL b) SME c) Staff d) Non of these
7. Which group of officers are exempted under protection policy for officers engaged in
NPAs / AUCAs recover, initiating criminal action pro-actively against defaulter and fighting
criminal /civil cases filed by defaulters ?
a) Removed b) Dismiss c) Dereliction of duty d) All
8. What is the cash penalty for an officer in 4th Instance under policy on staff accountability for
infringement/ transgression in Core Banking Data and other Information Technology Tools
& Packages of the Bank ?
a) Rs 3000/- b) Rs 5000/- c) Rs 10,000/- d) Rs 15,000/-
9. In terms of which section of the Lokpal and Lokayuktas Act, 2013 declaration of assets
and liabilities by all employees of the Bank is applicable.
a) 41 b) 42 c) 43 d) 44
10. How many days mandatory consumption leave is required under "Vacation Policy" by the
officers and award staff members of the Bank in every financial year.
a) Ten working days in one spell b) Ten working days
c) In stages d) None of the above
4
11. What is the amount of coverage for subordinate staff under Super Suraksha Group
Master Policy ?
a) Rs. 4 lacs b) Rs. 3 lacs c) Rs. 2 lacs d) Rs. 1 lac
12. Under which act Banking industry has been declared as a "Public Utility Service"
a) Company Act b) BR Act
c) Industrial Dispute Act d) RBI Act
13. What is the new designation of Senior Special Assistant ?
a) Chief Associate (Customer Support & Sales)
b) Special Associate (Customer Support & Sales)
c) Senior Associate (Customer Support & Sales)
d) Senior Special Associate (Customer Support & Sales)
14. What is the cash component for the branch selected for Chairman's Club ?
a) Rs. 2 lacs b) Rs. 1.5 lacs c) Rs. 1 lac d) None of the these
15. What is the name of the digital life certificate submitted by pensioners ?
a) Jeevan Pramaan b) Jeevan Shree c) Jeevan Raksha d) Jeevan Dhan
16. What is the maximum amount of collateral free education loan that can be sanctioned to a
staff member for studying at ISB Mohali ?
a) Rs. 20 lacs b) Rs. 25 lacs c) Rs. 30 lacs d) None of the these
17. What is the maximum amount being paid to an officer under the policy of ex-gratia lumpsum
amount in lieu of Compassionate Appointment ?
a) Rs. 10 lacs b) Rs. 12 lacs c) Rs. 14 lacs d) Rs 15 lacs
18. 'Meri Unnati Mere Haath' is the punchline of which project.
a) Project Saksham b) Project education c) Project gyan d) Project learning
19. In the case of an officer who is ineligible for casual leave, the entire balance of casual
leave should be credited to leave account
a) Unavailed casual leave b) Special leave
c) Sick d) Previlege
20. What is the eligibility amount under IHLS to a staff member for repair/ renovation/alteration
of the house/ flat acquired without bank's finance.
a) Rs. 20 lacs b) Rs. 30 lacs c) Rs. 40 lacs d) Rs. 60 lacs
***
ANSWERS TO HUMAN RESOURCE
1. (d) 2. (a) 3. (a) 4. (a) 5. (c)
6. (b) 7. (d) 8. (a) 9. (d) 10. (a)
11. (b) 12. (c) 13. (a) 14. (b) 15. (a)
16. (c) 17. (c) 18. (a) 19. (d) 20. (b)
5
GENERAL BANKING MCQ'S
1. Non-payment advice from drawee branch has been dispensed with for amount less than
for issuing a duplicate IOI draft.
a) Rs.50000/- b) Rs.10000/- c) Rs.100000/- d) No limit
2. Minimum meetings to be attended by the Controllers every year i.e.
AGM /CM in a branch's Customer Service Committee meetings held monthly intervals.
a) 1 b) 2 c) 3 d) 4
3. There is no restriction on allotment of multiple Safe Deposit Lockers against the same set
of documents. However, customers belonging to may be denied additional lockers.
a) Low risk category b) Medium risk category
c) Higher risk category d) Only (b) & (c)
4. The OVVR allotment and checking reports needs to be stored in separate server for retrieval
purpose as and when required as per record retention period of
a) 3 years b) 5 years c) 8 years d) 10 years
5. Quoting of PAN number is mandatory while opening an account or making a time deposit
exceeding Rs. and any person who has not been allotted a PAN number
shall make a declaration in Form No. 60/61
a) 10000 b) 20000 c) 200000 d) 50000
6. Bank charges for non-home cash transactions (inclusive of service tax) pertaining to 'P'
Segment Cash Deposits (Max. Rs.25,000/-per day)is
a) Rs.2/-per Rs.1000/- (Min. Rs.50/-) b) 2/-per Rs.1000/- (Min. Rs.15/-)
c) Rs.2/-per Rs.1000/- (Min. Rs.25/-) d) Free
7. Bank charges for non-home cash transactions (inclusive of service tax)pertaining to 'SME'
Segment Cash Deposits (Max. Rs.2,00,000/-per day)is
a) Rs.2/-per Rs.1000/- (Min. Rs.50/-) b) Rs.3/-per Rs.1000/- (Min. Rs.10/-)
c) Rs.2/-per Rs.1000/- (Min. Rs.25/-) d) Free
8. Bank charges for non-home cash transactions (inclusive of service tax)pertaining to 'P'
Segment Cash Withdrawal (self only, max. Rs.50,000/- per day) is
a) Rs.2/-per Rs.1000/- (Min. Rs.10/-) b) Rs.3/-per Rs.1000/- (Min. Rs.10/-)
c) Rs.2/-per Rs.1000/- (Min. Rs.25/-) d) NIL
9. Under "Online Savings Bank Account Application", applicant will be given time period of
to apply to the branch with KYC documents otherwise application will be
discarded by the system automatically.
a) 30 days b) 15 days c) 45 days d) 60 days
6
10. All transactions beyond this limit would be routed through Maker-Checker concept in
the CBS.
a) 7lac b) 10lac c) 15lac d) 20lac
11. Banks should exercise due diligence in accepting cheques that are to the
opening of the accounts for deposit into new accounts under any circumstances.
a) Subsequent b) Prior c) Either (A) or (B) d) None of these
12. Any remittance of funds by way of Demand Draft/IOI, Bankers' Cheque,Mail/Telegraphic
Transfer/NEFT/RTGS or any other mode and issue of Travellers' Cheques for value of
should be effected by debit to the customer's account only.
a) Rs. 20,000/- & above b) Above Rs. 20,000/-
c) Rs. 50,000/- & above d) Above Rs. 50,000/-
13. Name the product that has been recently withdrawn
a) No frill b) Small a/c
c) Basic a/c d) None of the above
14. As per revised instructions, production of sureties may not be insisted upon while obtaining
indemnity for issuance of a duplicate IOI (Draft) where the amount of IOI (Draft) is up to
if the applicant (purchaser) of a IOI (Draft) is considered good for the
amount involved and and the applicant / purchaser is maintaining satisfactory account
complying KYC norms with the issuing branch for a minimum period of six months as on
the date of issue of the original draft.
a) Rs. 1.00 lac b) Rs. 0.50 lac c) Rs. 1.50 lac d) Rs. 2.00 lac
15. Non-permanent Jawans of Home Guards "POLICE SALARY PACKAGE" will be eligible
for Personal Accident Insurance cover of as againt Rs 3.00 lac as in case
of permanent jawans.
a) Rs. 1.00 Lacs b) Rs. 2.00 Lacs c) Rs. 3.00 Lacs d) Rs. 4.00 Lacs
16. Minors who can adhere to uniform signature and are not less than ten years old can open
accounts in their single name and maintain therein a maximum balance of .
a) Rs.200,000/- b) Rs.300,000/- c) Rs.100,000/- d) Rs.250,000/-
17. Instrument bearing date as per should be accepted by banks for payment,
if otherwise in order.
a) Saka Samvat calendar b) Gregorian calendar
c) Either (A) or (B) d) None of these
18. SBI General has revised PAI and reduced the coverage amount from Rs.4 lacs to
lacs
a) 1lac b) 2 lac c) 3lac d) 5lac
7
19. Apart for cash deposits, Green Channel Counters have been enabled for
a) Funds Transfer b) Registration for MBS
c) Cash Withdrawals d) All of these
20. In addition to mandatory security features, additional security features in the CTS-2010
Cheque standard adopted by SBI are
a) Bank's logo & name (watermark) b) Fugitive ink
c) Secondary fluorescent ink d) All of these
21. Fraud Cases of Rs.3.00 crore and upto Rs.15.00 crore, where staff involvement is prima
facie evident are to be referred to .
a) Economic Offenses Wing b) CBI (Anti Corruption Branch)
c) RAW d) Local Police
22. Fraud Cases of below Rs.3.00 crore are to be referred to .
a) Local Police/State Police b) ACB
c) CBI d) Controlling Office
23. The pensioner can submit annual Life certificate at of the Bank 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-home Branch
24. The customer can deposit up to a maximum of Rs. per transaction through
Cash Deposit Machine.
a) 40,000 b) 49,900 c) 50,000 d) 1,00,000
25. The cash compensation payable to the employees of the Bank in the event of death
and permanent disablement / serious injury resulting in cessation of service has been
revised as
a) Supervising Staff :Rs 10.00lakh b) Clerical Staff Rs7.00lakh
c) Subordinate Staff Rs 7.00 lakh d) All of these
26. The default limit for the P Segment Savings Bank Multi City Cheques has been increased
from Lacs to Lac.
a) 2-5 b) 2-10 c) 5-10 d) 5-50
27. Minimum leaves per cheque book is to be provided to all Savings Account
customers
a) 200 b) 75 c) 100 d) 10
8
28. Minimum leaves per cheque book have to be provided to all Cash Credit
and Current Account customers.
a) 20 b) 25 c) 50 d) 25
29. The maximum amount that can be withdrawn at GCC is fixed at Rs. per
card per day.
a) 40000 b) 10000 c) 5000 d) 1000
30. W.e.f. 01.07.2012, Agency commission rate for government receipt transactions (physical
mode) is Rs per transaction.
a) 65 b) 12 c) 5.5 d) 50
31. Wef 1.7.2012, Agency commission rate for government receipt transactions (e-mode
receipts) is Rs. per transaction.
a) 65 b) 12 c) 5.5 d) 50
32. W.e.f. 01.07.2012, Agency commission rate for government Payments other than pension
is .
a) Rs. 65 b) Rs.50
c) Rs. 5.5 d) 5.50 paise per Rs.100/- turnover
33. W.e.f. 01.07.2012, Agency commission rate for Pension payments is Rs.
per Transaction
a) 12 b) 50 c) 5.5 d) 65
34. Term deposit scheme has flexibility of period from days to months
a) 7-120 b) 180-120 c) 180-84 d) 1-120
35. In the case of delays in submission of TDS statements (Form 26Q/27Q/26QB) a Fee of
Rs._____ per day from the due date of TDS statement to the date of furnishing such
statement, will be levied
a) Rs. 100/- b) Rs. 200/- c) Rs. 500/- d) Rs. 1000/-
36. Non submission of TDS statements shall attract a penalty ranging from
a) Rs 10,000/- to Rs 1,00,000/- b) Rs 1,000/- to Rs 10,000/-
c) Rs 1,000/- to Rs 25,000/- d) Rs 10,000/- to Rs 25,000/-
37. Under Corporate Social Responsibility our Bank has taken new steps beneficial to
environment.
a) Green Champion b) Ozone Champion
c) Green Colour Banking d) Both (a) & (b)
38. Under Recurring Deposit Scheme, In case installments are not received the
account should prematurely be closed and balance paid to the account holder.
a) 9 b) 12 c) 6 d) 3
9
39. Immediate credit of outstation cheques of other banks may be provided by the branch to
the satisfactorily conducted accounts up to
a) Rs 15000/- b) Rs20000/- c) Rs 25000/- d) Rs 30000/-
40. Interest for delayed collection shall be paid with a minimum of Rs. even if the
interest calculated works out to less than that amount.
a) Rs. 25 b) Rs. 50/- c) Rs. 10/- d) Rs. 5/-
41. Who join/joined the Bank in permanent scale (including part-time) will not be
eligible to become members of the existing SBI Pension Fund.
a) On or after 1st April 2011 b) On or after 1st April 2012
c) On or after 1st September 2010 d) on or after 1st August 2010
42. Recently included documents in the indicative list of required documents for opening
accounts of proprietary concerns are
a) Income Tax return of proprietor b) Utility bills of the proprietary concern
c) (a) & (b) d) None of these
43. Delay beyond 7/10 days, up to 14 days in collection of outstation cheques in deposit
accounts, interest for delayed collection should be paid at rate of
a) Savings Bank
b) Term Deposit
c) 2% above the correspondingterm deposit rate
d) 2% above the rate applicable to the loan account.
44. Where the delay is beyond 14 days in the collection of outstation cheques in deposit
accounts, interest for delayed collection should be paid at rate of
a) Savings Bank
b) Term Deposit
c) 2% above the corresponding term deposit rate
d) 2% above the rate applicable to the loan account
45. In case of extraordinary delay (delays exceeding 90 days) in the collection of outstation
cheques in deposit accounts, interest for delayed collection should be paid at rate of
a) Savings Bank
b) Term Deposit
c) 2% above the corresponding term deposit rate
d) 2% above the rate applicable to the loan account
46. Money received on deposit for a fixed period of days and above is called
Term Deposit.
a) 7 b) 120 c) 180 d) 10
10
47. KYC non-compliant accounts will attract a nominal charge of Rs. per year.
a) 7 b) 112 c) 180 d) 10
48. Demand Drafts should be crossed for the amount over Rs.
a) 10000 b) 20000 c) 25000 d) 30000
49. Periodicity of Balancing of Stamp Account is
a) Monthly b) Quarterly c) Half-yearly d) Yearly
50. Retention period for Power of Attorney Register is
a) 10 b) 25 c) 50 d) 60
51. Every Year obsolete records have to be identified on
a) 1st January b) 28th February
c) 31st March d) 30th September
52. Which of the following is true about Banker's Cheque.
a) All banker's Cheques issued by debit to charges account and outstanding for more
than 3 years is to be credited to charges account.
b) All banker's cheques whether issued by debit to charges account or at the request of
any customer, if outstanding for more than three years is to be credited to charges account.
c) Both a and b
d) None of these.
53. The entire remittance will be returned to the bank at its cost if more than _______% of
notes are found to be issuable notes by RBI.
a) 2 b) 5 c) 10 d) 20
54. The counterfeit bank notes cannot be impounded by
a) All PSBs b) All Treasuries and Sub-treasuries
c) All NBFCs d) All Co-operative banks & RRBs
55. As per recent promotions in CBS, whenever a teller does not log into the system for ___
days period defined at the institutional level, the system would inactivate the teller and will
throw an error "7757: Teller Inactivated".
a) 10 days b) 15 days
c) 7 days d) None of the above
56. Claims, under COPRA 1986, greater than Rs.20 lacs and up to Rs.100 lacs are to be
made before
a) District Forum b) State Commission
c) National Commission d) Any of these
57. Ombudsman is appointed under which Act
a) COPRA b) RBI
c) Banking Regulation Act d) Companies Act
11
58. The CPIO (central public information officer) has to provide information or reject the request
within days from the date of receipt of the request.
a) 15 b) 30 c) 45 d) 90
59. Which software acts as a platform for Asset Liability Management ?
a) CS Exim Bills
b) Oracle Financial Services Application Suite (OFSA)
c) Finance One
d) B@ncs 24
60. When incurring any expenditure in relation to fixed assets the Charges-Fixed Assets account
to be debited instead of Fixed Assets-Furniture and Fixtures, if the amount involved is of
Rs.
a) Rs5000 and below b) Rs1000 and below
c) Below Rs1000 d) Rs500 and below
e) None of these
61. Core Capital is
a) Equity
b) Equity + Retained Earnings + Disclosed Reserves
c) Supplementary Capital
d) Equity + Reserves
62. An appeal to the Appellate Tribunal in DRT Cases has to be filed within days.
a) 15 b) 30 c) 45 d) 60
63. The Nodal Branch for Gold Deposit Account is
a) Bullion Branch, Mumbai b) Overseas Branch New Delhi
c) Parliament Branch, New Delhi d) Overseas Branch Mumbai
64. As a measure of employee welfare, the Bank has enhanced group Insurance Cover for
each of our employees of Scale-I to III from SBI Life Insurance Co. Ltd from Rs.2 lacs
to Rs. lacs
a) Rs.3 lacs b) Rs. 4 lacs c) Rs. 5 lacs d) Rs.6 lacs
65. Pension and family pension to retired employees of State Bank of India and Imperial Bank
of India is being processed and paid through Centralised Staff Pension Processing Cell
(CSPPC), which is set-up at .
a) CDC, Belapur
b) Central Accounts Office, Kolkata.
c) Corporate Centre, Navi-Mumbai
d) SBIICM, Hyderabad
12
66. The name of the nominee can now be mentioned on SB pass book/account statement/
TDR/STDR receipt - True or false
a) True, as per the discretion of the Branch Manger
b) True, as per RBI guide lines in this regard
c) False, the name of the nominee can not be mentioned as it should be confidential
d) True, in case the customer is agreeable for the same
67. Which is true about the account opened/opening in the name of minors.
a) If minor is less than 10 years of age, ID proof of the person who will operate the
account is to be obtained.
b) In cases where minor is of 10 years or above age and can operate the account
independently, KYC procedure for identification/address verification as in the case
of any other individual would apply.
c) Both a and b. d) None of these
68. Matured but not paid deposits are treated as .
a) Time Liability b) Demand Liability
c) No Liability d) Contingent Liability
69. Which of the following can endorse a Negotiable Instrument ?
a) A Minor b) Married Woman
c) An Illiterate Person d) Blind Person e) All of the above
70. Effective from 11.02.11, if a customer is not happy with our services and wishes to close
(not transfer) new account within days, no service charges need to be recovered from
such customers . (This is as per our bank's accepting codes of BCSBI)
a) 07 b) 10 c) 14 d) 30
71. The drawer of a cheque is always ?
a) Account Holder b) Payee
c) Paying Banker d) Collecting Banker
72. Which of the following is the latest direction of banks by RBI on safe deposit Vault/Locker?
a) Engraving Bank's emblem on Locker Key
b) Engraving Bank's emblem on Locker
c) To obtain signatures of the nominees
d) To allow only jointly operated accounts
73. Prior administrative clearance will, now, need to be obtained from the at the Global Markets
Department, Corporate Center, Mumbai, for sanction of loan against Equity Shares by the
Branches/Operating Units.
a) General Manager b) Assistant General Manager (Operations)
c) Deputy General Manager (Operations) d) Chief General Manager
13
74. In recently introduced State Government Salary Package (SGSP) Scheme, SBI Vishesh
status is available to customers belonging to variants
a) Gold b) Diamond c) Platinum d) Both b & a
75. There shall be no penalty for premature withdrawal of Term Deposit of Rs 15.00lac &
above for tenors below provided these remained with the bank for at least
7 days.
76. What are the advantages of cross selling ?
a) No NPA b) Cheaper to cross sell
c) Commission earning d) All of the above
77. No interest will be paid if the term deposit remains with the bank for less than
days period.
a) 7 b) 180 c) 360 d) 90
78. Bank has formulated a policy for dealing with incidents of frequent dishonour of cheques
and it has been approved that in the event of dishonour of cheque during a
financial year, a cautionary notice will be sent to the customer intimating him that no fresh
cheque book will be issued after dishonour of cheque on occasion and the
Bank will have the right to close the account after serving a notice of days to
the customer.
a) 2nd, 3rd, 15 b) 3rd, 4th, 30 c) 4th, 5th, 30 d) 9th, 10th, 30
79. There is an enhancement of cutoff limit for double signature in IOI (Drafts, Bankers Cheque
etc.) from Rs. 50,000/- to Rs. .
a) 100000/- b) 150000/- c) 200000/- d) 250000/-
80. Cash shortage up to which is made good by the employee same day and if there is no
suspicion of fraud, it need not be reported as fraud.
a) Rs.1000/- b) Rs.5000/- c) Rs.10, 000/- d) Rs.2500
81. To ensure prompt payment of Locker rent, banks to obtain at the time of allotment of locker,
fixed deposit which would cover years.
a) 1 yrs b) 3 yrs c) 2 yrs d) 4 yrs
82. Banks to ensure that dishonored instruments are returned / dispatched promptly within
maximum hours.
a) 12 b) 36 c) 24 d) 48
83. Branches should make all efforts to desist from practice of crediting the Proceeds to System
Suspense account due to insufficient details of customer. All such Existing entries should
be reversed in a time bound manner, say within days
a) 10 b) 20 c) 30 d) 40
14
84. Under Online Customer Acquisition Solution(OCAS), the customer/applicant has to
complete the online application process by going through different stages.
a) 5 b) 4 c) 2 d) 3
85. If the complaints are redressed within , banks need not include the same in
statement return of complaints.
a) 10days b) 3 days
c) Next Working day d) 7 days
86. The nodal branch for payment of pension/family pension under Coal Mines Provident Fund
Organisation is
a) Patna b) Dhanbad c) New Delhi d) Jamshedpur
87. If a complaint regarding services rendered by BC/BF does not get satisfactory response
from the Bank within 60 days customer may approach .
a) RBI b) IBA
c) Banking Ombudsman d) Consumer Forum
88. The loss of Blank IOI forms should be reported by the branch to
a) Central Stationery Department b) Circle Stationery Department
c) Controllers d) Draft cell of CDC
89. The SB pass book, if retained overnight for any reason at the branch should be collected
within a period of , failing which the bank will dispatch the pass book to the
customer by Registered A.D. post / Courier at their cost.
a) 3 days b) A Week c) Fortnight d) Month
90. Which act provides the right to the RBI, to announce Bank Rate ?
a) BR Act b) NI Act c) Finance Act d) RBI Act
91. What is the name of the person appointed by the Court when there is a compulsory winding
up of the company ?
a) Liquidator b) Official Liquidator
c) Administrator d) None of these
92. Gratuity ceiling has been increased w.e.f. 24.05.10 from Rs. lacs to Rs. lacs.
a) 2.5 to 8.0 b) 2.5 to 10 c) 3.5 to 8.0 d) 3.5 to 10
93. Which of the following item for compensation is removed from the SBI Compensation
policy 2011(removed from IBA Model compensation policy)
a) Compensation on violation of time norms
b) Disputed ATM Transactions
c) Collection of cheque drawn on foreign countries
d) None of these
15
94. Prescribed RTI fee of Rs.10/- collected from the customers in cash, is to be credited
to .
a) Exchange Account b) Commission Account
c) P & T Charges Recovered Account d) Interest Account
95. Indicative time norm prescribed for opening of DEPOSIT account is .
a) 5 min b) 7 min c) 8 min d) 10 min
96. No of times a locker holder can operate locker free of cost in a year is restricted
to
a) 10 b) 12 c) 15 d) 30
97. In the SBI compensation policy 2011, compensation for which of the following is newly added?
a) Delay in credit of Pension b) Lenders' Liability
c) Neither 'a' nor 'b' d) Both 'a' and 'b'
98. Under the revised structure, as per RTI act is the CPIO in respect of Administrative Office.
a) Chief Manager (GB) b) Senior AGM/RM
c) DGM (B&O) d) None of these
99. Excess cash found at the branch deposited to Sundry Deposit Account will be reversed if
unclaimed on basis.
100. If counterfeit notes impounded is ------ or more; FIR to be lodged at every instances.
a) 6 b) 4 c) 5 d) 7
101. Safe custody receipt in respect of security deposit received from BCs/BFs at Region level
is to be kept with _______
a) Regional Manager b) Chief Manager (Rural)
c) Assistant General Manager (Admin) d) None of the above
102. Duplicate IOI can be issued to staff for amount up to Rs. by waiving Indemnity
and on the basis of mere declaration.
a) 25000 b) 50000 c) 100000 d) 200000
103. The amount to the credit of any account in India with any bank which has not been operated
upon for a period of ten years will be transferred to fund.
a) Rural Infra Development b) Financial Education
c) Rural Poverty Alleviation d) Depositor Education and Awareness
104. State Bank of India has launched its first Self Service Banking branch at
a) MUMBAI b) CHENNAI c) BANGALORE d) NEW DELHI
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105. With effect from July 1, 2011, as per Reserve Bank of India's directives, coins of
denomination of and below will not be accepted for exchange at the bankbranches.
a) 10 paise b) 20 paise c) 25 paise d) 50 paise
106. As per RBI guidelines, starting from February 1, 2011 all payments made via Master/Visa
credit cards over phone (IVR system) will require an additional ?
(a) Permanent Identification Number (b) Unique Identification Number
(c) One time Password (d) None of the above
107. Which of the following statement is not correct regarding Drop Box ?
a) To be opened at the commencement of the business
b) To be opened at least every hour
c) Every clearance needs to be recorded
d) None of these
108. What is the minimum amount that can be withdrawn per cheque ?
a) Rs. 1/- b) Rs. 5/- c) Rs. 50/- d) Rs. 100/-
109. Minimum amount that can be remitted through NEFT is .
a) Rs. 1000/- b) Rs. 5000/- c) No minimum d) Rs. 10000/-
110. Preservation of Bank Records is defined under Section
(a) 45-Y of NI Act (b) 45-Y of BR Act
(c) 45-Y of RBI Act (d) 45-Y of SBI Act
111. Deposit of Title Deeds in case of Equitable Mortgage can be done at
(a) Notified Centre (b) Urban Centre
(c) Anywhere (d) None of the above
112. The Appellate Authority for our Bank at Corporate Centre under Right to information Act is
of designation.
a) DMD b) CGM c) GM d) DGM
113. Operations in the accounts of Public Limited companies are not permitted until the
submission of
a) Board Resolution
b) Memorandum of Association
c) Articles of Association
d) Certificate of Commencement of Business
114. TDS is to be effected if total interest paid/accrued during a financial year exceeds
Rs. in case of Time deposits
a) 2500 b) 5000 c) 10000 d) 20000
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115. What is the minimum amount of deposit per annum in PPF account ?
a) Rs.100/- b) Rs.70000/- c) Rs.1000/- d) Rs.500/-
116. Who is authorized to undertake physical verification of security forms at branches having
Currency Chests /Repositories ?
a) CM (GB) of the region
b) Official from CSD
c) Person entrusted with the duty of cash verification
d) Official from BOD
117. After the implementation of the IFAMS software the accounting entries in the CBS will be
passed by .
a) Need not be passed b) the branch
c) by LHO d) at RBO
118. Physical verification of security forms should be carried out at branches at
intervals.
a) Yearly b) Half-yearly c) Quarterly d) Monthly
119. Issue of probate will be governed by which act ?
a) Indian Contract Act b) NI Act
c) Company Act d) Indian Succession Act
120. Interest on the TDR deposit made by a locker hirer will be .
a) Directly credited to commission account
b) Credited to current/savings bank account and standing instructions obtained for
recovery of locker rent
c) Kept separately in TDR interest account
d) None of them
121. Strong-room fitness certificate should be :
a) Exhibited inside BM's chamber
b) Exhibited outside the strong room
c) Exhibited inside the strong room
d) Kept with the BM
122. Charges for issuing duplicate passbook are credited to :
a) Interest A/c b) Commission A/c
c) Exchange A/c d) Charges A/c
123. The minimum amount that can be withdrawn from the currency chest is
a) Rs. 500/- b) Rs. 1000/- c) Rs. 50000/- d) Rs. 100000/-
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124. BPR outfit to take care of cash remittance of the branches is .
a) RACPC b) Mini Market
c) Currency Administration Cell d) SECC
125. Petty cash is checked by .
a) BM b) Accountant c) Head clerk d) Cash officer
126. It has been decided to redesignate the designation "Senior Special Assistant"
as .
a) Associate (Customer Support & Sales)
b) Senior Associate (Customer Support & Sales)
c) Chief Associate(Customer Support & Sales)
d) Senior Special Associate(Customer Support & Sales)
127. The hand balance of cash officer should completely be verified by the Accountant/BM.
a) Once in a week b) Once in a month
c) At any time d) quarterly
128. Government cheques are valid for .
a) One month after the issue b) During the month of issue
c) 3months after the month of issue d) 21 days after the issue
129. As per Income Tax Act, up to what amount TDRs can be paid in cash ?
a) Rs. 50, 000/- b) Rs. 20, 000/- c) Rs. 25, 000/- d) Rs.1, 00,000/-
130. As per Income Tax Act, up to what amount cash can be accepted for issue of Demand
Drafts and banker's Cheques ?
a) <Rs. 50,000/- b) <Rs. 20,000/- c) <Rs. 25,000/- d) <Rs. 10,000/-
131. CIN in govt business means
a) Challan Identification Number b) Customer Identification Number
c) Challan Information Number d) Customer Information Network
132. Purchaser of a demand draft does not have the following right:
a) Revalidation of draft b) Obtention of a duplicate draft
c) Cancellation of draft d) Stop payment of a draft
133. When the customer whose account is closed does not return unutilized cheque leaves,
they should be entered in the register.
a) Lost Document b) Cheques referred register
c) Formalities register d) Sundry Documents register
134. PPF account can be extended for a minimum period of years
a) 1 b) 5 c) 8 d) 10
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135. Affidavit relating to deceased claims will be signed by:
a) Person not related to claimants b) Claimants
c) Notary d) Bank
136. Document Archival Centre is aimed at .
a) Printing of Documents b) Record Management Solution
c) Both a & b d) None of the above
137. The audit notes of Concurrent Auditor should be effectively disposed off within
a) 5 days b) 7 days c) same month d) one month
138. Implementation of Clean Note Policy involves .
a) Doing away with stapling of note packets
b) Stopping of writing on the water mark window of the Notes,
c) Issue only clean notes to the public
d) All of these
139. RBI is authorised to prescribe CRR under
a) Sec. 24 of RBI Act b) Sec.42 of RBI Act
c) Sec. 24 of BR Act 1949 d) Sec. 42 of BR Act 1949
140. Banker and customer relationship in case of draft is
a) Agent and principal b) Debtor and creditor
c) Creditor and debtor d) None of the above
141. Which committee is instrumental for formation of BCSBI (Banking Code and Standard
Board of India)?
a) SS Tarapore b) Vagul c) Rangarajan d) Goiporia
142. Cross selling falls under
a) NBG b) CAG c) MCG d) RBU
143. The validity period of a challan /bill passed by a treasury officer is .
a) 7-days b) 10-days c) 14-days d) 15-days
144. All inoperative accounts may be classified as Risk ?
(a) Low (b) Medium (c) High (d) None
145. What is Bancassurance ?
a) Insurance sold to Bank employees
b) Selling insurance products through a Bank
c) Assurance of Insurance Company
d) Banking sector fund
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146. Penalty on delayed reporting of currency transfer is debited to Branch .
a) Interest a/c b) Exchange a/c
c) Charges a/c d) Concerned staff's a/c
147. The duplicate key of a locker is issued to the hirer against
a) Stamped letter of indemnity b) Probate/Succession certificate
c) Third party guarantee d) none of the above
148. Profit making banks can spend maximum of for community services banking
activities.
a) Rs. 5 crores
b) 1% of their previous year's published profit
c) 2% of last year's profit
d) Rs. 500crores
149. Abnormal delay for payment of penal interest is considered as beyond days
a) 10 b) 25 c) 35 d) 45
150. RBI conducts Annual Financial Inspection of Banks under Section ?
a) 35 of RBI Act-1935 b) Sec-35 of BR Act-1949
c) Sec-49 of RBI Act d) Sec-138 of NI Act-1881
151. Customer day is observed in branches on of the month
a) 5th& 10th b) 10th & 15th c) 15th & 25th d) 20th & 30th
152. In the IOI, the verification of BIAK refers to .
a) Bank-in-Authenticated Key b) Built-in-Authentication Key
c) Built-in-Accurate Key d) None of the above
153. Under how many grades revised Risk Rating is divided under RFIA.
a) 2 b) 3 c) 4 d) 5
154. Under which act, Indian Post Offices derive the exclusive privilege of conveying letters,
receiving letters, receiving, collecting, dispatching and delivering letters by post from one
place to other?
(a) Indian Post Office Act-1898
(b) Indian Parcel Service Act-2008
(c) Indian Public Services Act-1898
(d) None of these
155. What is the relationship between Bank and a customer in case of Standing Instructions?
a) Agent and principal b) Debtor and creditor
c) Creditor and debtor d) None of the above
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156. Form used for variation of nomination is
a) DA3 b) DA2 c) DA1 d) DA4
157. Under what circumstances furnishing of data by banks is not a violation of secrecy
Obligations .
a) Under compulsion of law
b) Duty to the public
c) With the express or implied concern of the customer
d) All of these
158. Annual Closing is a statutory obligation under .
a) BR Act b) Income Tax Act c) RBI Act d) CompaniesAct
159. Drop Box used at the branches are having slots to drop cheque.
a) One b) Two c) Three d) Four
160. Depreciation on computers will be charged at .
a) 33.33 % p.a. on WDV method b) 25 % p.a. on WDV method
c) 60 % p.a. on SLM d) 33.33% p.a. on SLM
161. Penal interest on forged notes in Remittance received from currency chest to RBI is at
a) Bank rate b) Bank rate +2%
c) SB rate +2% d) Maximum TDR rate + 1%
162. Time limit for reporting transaction of currency chest to FSLO, @LHO is .
a) 3 working days b) next day
c) same day d) next working day
163. Which of the following identification mark is found in Rs.1000/- (One thousand rupee)
currency notes to help visually impaired ?
a) Rectangle b) Sequence c) Circle d) Diamond
164. How many armed guards are required for Rs.8 lakh cash remittance ?
a) One b) Two c) Three d) No guard.
165. Guards patrolling currency chest / repository should be medically checked once In .
a) Half year b) A year c) Two year d) Three years
166. Circle Security officer is required to visit a currency chest once in months.
a) Six b) Twelve c) Twenty four d) Thirty six
167. Responsibility for coinage vests with government of India under .
a) Reserve Bank of India ACTS 1934 b) Note Refund Rules 1975
c) The coinage ACT 1906 d) The coinage supply Rules 1943
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168. Unclaimed safe deposit articles lying in the branch for 3 years and more are required to be
reviewed once in a year in the month of .
a) April b) March c) December d) July
169. Under KYC norms, all financial transaction records are to be retained for after the transaction
takes place.
a) One year b) Two years c) Five years d) Ten years
170. What is the equivalent of RD in Mutual Fund ?
a) FMP b) SIP c) Debt Fund d) Balanced Fund
171. Service charges levied by Currency Chest Branches on cash deposit by non-chest
branches of other banks is Rs. per packet.
a) Rs.2 b) Rs.5 c) Rs.10 d) Rs.15
172. What kind of relationship one should aim at for effective cross selling?
a) Short term relationship b) One time relationship
c) Long time relationship d) No Relationship
173. In case of payment of deceased account holders assets without legal representation, the
Death Certificate issued by which authorities are acceptable ?
a) Registrar of Birth & Death
b) The local sarpanch duly countersigned by the BDO/TahsiIdar
c) Both a & b
d) Non of the above
174. One of these is not a pre-requisite to approach the Banking Ombudsman:
a) Customer must first bring the grievance in writing to the Bank
b) Bank must have given a reply to the customer
c) If the customer does not receive any reply within 30 days
d) If the bank has given a reply but the customer is not satisfied with such reply
175. Duplicate Demand Draft is being issued to the customer (Purchaser/beneficiary) within a
from the receipt of such request and compensates the customers in case of delay.
a) Week b) Fortnight c) Month d) Quarter
176. The period of delay in respect of govt.transactions of Rs.1.00 lac and above shall attract
delayed period interest at .
a) Bank rate b) SBAR c) PLR d) Bank Rate +2%
177. What is the maximum amount of deposit in a year in PPF A/C?
a) 70000 b) 200000 c) 100000 d) 50000
178. Succession certificate is required to settle PPF deceased account if the settled amount is
more than .
a) 10000 b) 50000 c) 100000 d) 500000
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179. How many nominees can be attached to PPF account?
a) One b) Two c) Three d) One or more
180. SMS alert is sent to the drawer of the Cheque for cheques of Rs._____ and above received
in CTS clearing, before the cheques are debited to the customer's account, with a request
to the customer to confirm before 12.30 p.m. if the cheque has not been issued by him /
her or if there is any discrepancy in the amount.
a) 200000 b) 100000 c) 75000 d) 50000
181. How many years a PPF account needs to run so that permission can be given for premature
closure in case of exigencies .
182. Deposit in cash in Senior Citizen Saving Schemes,2004 is permitted if the amount is
less than
a) 10000 b) 50000 c) 100000 d) 500000
183. How much amount is to be collected from SCSS 2004 account holder for issue of first
duplicate passbook?
a) Rs. 1/- b) Rs. 5/- c) Rs. 10/- d) Rs. 50/-
184. A customer lodged a complaint with XYZ Bank for deficiency in service but did not receive
a reply. She should approach the Banking Ombudsman within from the date
of complaint.
a) One month b) One year
c) One month and one year d) Three years
185. How many alphabets are there in TAN no.?
a) 4 b) 5 c) 6 d) 3
186. String of OLTAS transactions are generated at office.
a) CDC b) Branch c) GAD d) FPLB
187. Expanded form of EASIEST is
a) Excise and Services Tax
b) Excise duty and Services Tax
c) Electronic Accounting System in Excise and Service Tax
d) None of these
188. AS per the KYC norms, accounts of salaried employees are classified as
a) Low risk b) High risk c) Medium risk d) Moderate Risk
189. Interest paid to customers on the overdue period in case of delays in collection of cheques
is debited to
a) Commission A/c b) Interest A/c
c) SB Interest A/c d) Charges a/c (Sundries)
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190. When will the debit raised in Customer's A/c be restored, once fraud is established?
a) Immediately b) After Conclusion of Staff Accountability
c) After Police Investigation is over d) After FIR is filed
191. The Disaster Recovery Centre of the Bank is located at
a) Mumbai b) Chennai c) Hyderabad d) Kolkatta
192. Which among the following is not among the objectives of the BPR ?
a) Increase customer satisfaction and convenience.
b) Improve credit quality and Turn Around Time
c) Simplify processes
d) Career Progression of the employees
193. A CRO's function at the branch DOES NOT include:
a) Regular contact with CPC heads and other staff at CPC, RACPC and SMECC
b) To know about important customers.
c) Maintaining Liaison with hardware vendors
d) Cross selling / Up selling bank's products
194. Which among the following is NOT an alternate delivery channel?
a) Internet Banking b) Merchant Banking
c) Call Centre d) ATM
195. Which of the following instruments should not be dropped in the Drop Box?
a) Cheques for Clearing b) Cheques for Outstation Collection
c) Government Challans d) Cheques for in-branch transfer
196. With effect from 1st July 2015, in CBS platform Rights for changes in capability level
will be withdrawn from branch / operating units and vested with the Service Desk of
respective LHO and BOG officials at GITC.
a) 5 b) 6 c) 7 d) 9
197. Any person who desires to obtain any information from the Bank can make a request to
the Bank seeking information under the RTI act. The prescribed fee which is Rs.
per an application should accompany the request
a) 10 b) 50 c) 100 d) 250
198. The normal time available for a CPIO to dispose the application is from the
date of receipt of the application.
a) 15days b) 20 days c) 30 days d) 45 days
199. In respect of application received through a CAPIO, the CPIO has a time limit of
from the date of receipt of the application by the CAPIO.
25
200. Under the RTI act, if the CPIO decides to provide any information in respect of a third party,
the CPIO has to send a notice to such third party requiring them to make their submission,
if any, against the disclosure of such information within ...
201. Under the RTI act, if the CPIO decides to provide any information in respect of a third party,
the CPIO has a time limit of from the date of receipt of the request for the
disposal of the application.
202. It should be mentioned in the reply that the applicant has a right to file an appeal against
the decision of the CPIO to the Appellate Authority within the Bank within a time period of
from the date of receipt of such decision.
203. The Appellate Authority has to dispose of the appeal within 30 days or within such extended
period not exceeding a total of from the date of receipt of the appeal
204. Insurance policy is charged to the Bank by way of .
a) Lien b) Hypothecation c) Assignment d) Pledge
205. The Branch must submit compliance report within days of Controllers visit to
Regional Manager.
a) 7 b) 15 c) 30 d) 45
206. A customer's complaint has to be finally settled within days
a) 7 b) 14 c) 21 d) 30
207. In case of transactions carried out by a non-account based customer, where the amount of
transaction is equal to or exceeds , whether conducted as a single transaction
or several transactions that appear to be connected, the customer's identity and address
should be verified
a) Rs.25000/- b) Rs.50000/- c) Rs.100000/- d) Rs.1000000/-
208. As per BCSBI norms, if a request has come for closure of SB/CA, this has to be closed
within working days.
a) 3 b) 5 c) 7 d) 10
209. As per BCSBI norms, If the bank plan to close a branch or move the branch, notice of
months is required to be given if there is no other branch of any bank functioning
at the center.
a) 1 b) 3 c) 2 d) 6
210. PAN of SBI is AAACS K.
a) 8577 b) 8578 c) 8579 d) 8580
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211. Banks cannot pay commission for mobilizing deposits except to:
a) Agents employed to collect door-to-door deposits
b) Business Facilitators
c) Business Correspondents
d) All of the above
212. The originating IBTS advices of shall be signed by one officer with his/her
specimen signature number.
a) Below Rs. 50,000/- b) Below Rs.1, 00,000/-
c) Below Rs.1, 50,000/- d) Irrespective of amount
213. The interest chargeable on loan against PPF balances is at the rate of per
annum instead of 1% per annum at present.
a) 1.50% b) 1.75% c) 2.00% d) 2.50%
214. Controllers (AGM /CM) will attend minimum Branch Customer Service
Committee meetings during the year.
a) One b) Two c) Three d) Four
215. All operating units manned by single officers irrespective of their location shall henceforth
be subject to visits at irregular intervals without any prior intimation by an official
to be nominated by the controller in addition to existing structured visits to these branches
a) Monthly b) Bimonthly c) Quarterly d) Half yearly
216. We have entered in an agreement with SBI Life Insurance Ltd., and for Pradhan
Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana
(PMSBY) schemes respectively.
a) New India Assurance Ltd. b) SBI Life Insurance Ltd.
c) SBI General Insurance Ltd. d) National Insurance Co. Ltd.
217. Under Garmishee Order, Garmishee means ?
a) Bank b) Customer of the bank
c) Judgement Creditor d) Debtor of the Judgement debtor
218. In Branch Customer Service Committee no of representatives from customers will be taken
a) Two
b) One
c) Three
d) No customer representative in Branch Customer Service Committee
219. Locker cannot be opened in the name of neither as a single nor as a joint account
a) Minor b) NRI
c) Blind / visually impaired d) None of these
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220. The threshold limit for customer transactions under RTGS has been increased to

221. For which of the following items Branch Drop Box is not used ?
a) On Bank Cheques b) Local other bank cheques.
c) Non Local Cheques d) Govt Challan receipt
222. Lien becomes time barred after 3 years .
a) From the date of loan b) Date of delivery of relative goods.
c) Due date of loan d) Lien has no limitation period
223. Section: 45Z of Banking regulation Act, 1949 is related to .
a) Unclaimed deposits b) Maintenance of SLR
c) Nomination facility d) Procedure for opening new Brs
224. The software used by ATM Switch Centre, Belapur for running of ATMs is .
a) Base 20 b) Base 24 c) Bank 24 d) Bank 20
225. Clayton's rule is applicable in case of
a) Term loan & cash credit b) Demand loan & overdraft
c) Term loan & overdraft d) Cash credit & overdraft
226. Inchoate instrument is
a) No proper name b) Instrument partially or fully destroyed
c) Incomplete instrument d) Instrument not legible
227. IBTS is .
a) Inter branch transfer system b) Inter branch transaction system
c) Inter branch transfer scheme d) Inter branch transaction scheme
228. State Bank of India acts as an agent of RBI in carrying out the Government Business as
per the provisions of .
a) Sec.45 of RBI Act b) Sec.45 of RBI Act & Sec.32 of SBI Act
c) Sec.2 of RBI Act & Sec 45 of SBI Act d) Sec.32 of RBI Act
229. As per Finance Act, 2011, Very Senior Citizen is a resident of age years and above.
a) 75 b) 65 c) 80 d) 70
230. Penalty in case of min. subscription not been made in PPF a/c in a year is .
a) Rs.5 per month b) Rs.100
c) Rs.50 for half year d) Rs.50
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231. Strong room fitness certificate is obtained , and to be kept as .
a) Every year, Branch Document
b) Once in three years, Branch document
c) Every Year, Joint Custodian's document
d) Every Year, Miscellaneous document
232. The UTR no. in RTGS/NEFT transactions stand for .
a) Unique Transfer Reference No. b) Universal Transaction Ref. No.
c) Unique Transaction Reference No. d) Unique Transaction Registration No
233. IFSC code no. which is mandatory for RTGS/NEFT transactions stands for .
a) International Financial Services Code b) Indian Financial Services Code
c) Indian Financial System Code d) International Financial System Code
234. Which of the following is true with regard to SCSS-2004 ?
a) Maximum deposit that can be made is Rs.15 Lacs
b) Rate of Intt is 9% p.a. and interest can be paid on the date of fixed quarter end like
31st Mar.
c) Only those who attained age of60 yrs and above can open the a/c
d) All the above
235. Which of the following is true with regard to PPF accounts ?
a) The annual ceiling of Rs.1,00,000 includes penalty, late fees and maximum no. of
remittances in a financial year is 12.
b) Minimum amount of Deposit is Rs.500 & Maximum amount of deposit is Rs.1,00,000
per year
c) No PPF a/c can be opened in the name of Trust/ NRI.
d) All above
236. New Pension System (NPS) has been introduced in India w.e.f.
a) 01.12.2009 b) 01.05.2009 c) 01.04.2010 d) 01.04.2011
237. How many accounts are opened under New Pension System?
a) 2 b) 4 c) 3 d) Only one
238. The subsidiary of SBI for management of pensions funds under NPS is .
a) SBI-NPS Pvt. Ltd. b) SBI Funds Management Pvt. Ltd
c) SBI Pension Funds Pvt. Ltd. d) SBI Pension Funds Payments Pvt Ltd
239. The maximum amount of contribution one can make for New Pension System is
.
a) Rs.70,000 per annum b) Rs.1,00,000 per annum
c) Rs.60,000 per annum d) Unlimited
29
240. A Supervising Official will be eligible for a new mobile hand set after a lapse of years from
the date of purchase of earlier handset.
a) Three b) Two c) Four d) Five
241. NPS is a voluntary Pension System of Pension Fund Regulatory & Development Authority
(PFRDA) open to all citizens in the age group of years.
a) 18-60 b) 21-60 c) 21-55 d) 18-55
242. Which of the following is True with respect to NPS?
a) Working class from Unorganized Sector are also eligible for subscribing to NPS.
b) Existing employees who are already eligible for pension can also join this scheme to
get 2nd pension.
c) Every Citizen of India who is in the age bracket of 18-60 can join the scheme.
d) all the above
243. What is PRAN under New Pension System (NPS)?
a) Permanent Registration & Account Number
b) Permanent Retirement Association Number
c) Permanent Retirement Account Number
d) Pension on Retirement Account Number
244. What is maximum number of nominees that can be appointed under NPS?
a) 1 b) 2 c) 3 d) 4
245. The Custodian under New Pension System (NPS) is:
a) CSDL b) PFRDA
c) NSDL d) Stock Holding Corporation of India limited (SHCIL).
246. Central Record keeping Agency (CRA) for the New Pension System is:
a) NSDL b) CSDL c) PFRDA d) IRDA
247. The Nodal Branch in State Bank of India for New Pension System is .
a) Hyderabad Main Branch b) New Delhi Main Branch
c) Mumbai Main Branch d) Main Branch, Chennai
248. The funds management under NPS is taken care by:
a) Point of Present (POP)
b) PFRDA
c) Pension Fund Manager (PFM)
d) Central Record Keeping Agency (CRA)
30
249. Relationship between Customer & Banker in case of Safe Custody is
a) Debtor & Creditor b) Bailer & Bailee
c) Lessor & Lessee d) Pledge & Pledgee
250. As per New Clause incorporated in Locker Agreement which of the following statement is
not correct in respect of break opening of locker?
a) The Bank has the right to break open non operated lockers forone year belonging to
the High Risk category customers
b) The Bank has the right to Break open non operated lockers for 3 years for medium
risk category customer
c) The Bank has the right to Break open non operated lockers of above category after
giving a 15 days notice, even though the locker rent has been paid regularly.
d) The bank has no right to break open the locker if the rents are paid regularly.
251. Relationship of the Banker and the hirer in case of Safe Deposit Llockers is .
a) Licensor & licensee, with bank holding general lien
b) Lessor & Lessee
c) Bailer & Bailee
d) Principal & Agent
252. Which of the following statements is not correct in respect of Safe Deposit Lockers?
a) Lockers can be allotted only to-Individuals either singly or jointly.
b) Locker cannot be opened in the name of a minor neither as a single nor a joint account
c) Locker can be allotted in the name of blind/visually impaired person(s), literate or
illiterate, single or joint operation with other person permitted.
d) Locker cannot be allotted in the name of blind/visually impaired person(s).
253. It has been decided that testing for fugitive ink be made compulsory for payment of cheques
for amounts
a) Rs.10,000/- and above b) Rs.25,000/- and above
c) Rs50,000/- and above d) Rs.5,000/- and above
254. Which of the following should be reported as fraud?
a) Cash shortage of more than Rs.10,000/-.
b) Cases of cash shortage of more than Rs.5,000/-, if detected by the Management
Auditor/ Inspecting Officer and not reported on the date of occurrence by the person(s)
handling cash
c) Both a & b
d) Neither a nor b
31
255. If the operating instruction is 'Either or Survivor' and one of the depositors expires before
the maturity, payment of the fixed deposit before maturity may be allowed .
a) not allowed till maturity
b) to the survivor only
c) to the survivor and legal heirs of the deceased joint
d) None of the above
256. 'Force Majeure' Clause means
a) Circumstances beyond the control of the Bank
b) Circumstances over which the Bank has complete control
c) Both (a) & (b)
d) None of these
257. If pension is not credited on the last day of succeeding month after receipt of Govt. Order
/ notification in Bank, the compensation to be paid @ .
a) Bank Rate +2% b) RBI Repo rate + 2%
c) Savings rate + 2% d) None of the above
258. IFRS refers to .
a) International Financial Reporting Standards
b) Indian Financial Reporting Standards
c) Institutional Financial Reporting Standards
259. Savings Bank cum Overdraft product-Mudra Loan in PMJDY SB A/cs can be sanctioned
to the applicants whose minimum age is 18 and maximum age is years.
a) 45 b) 50 c) 55 d) 60
260. In the case of collection of outstation cheques at centers, where the Speed Clearing System
is not applicable, the collecting and paying banker has to share charges for
collection of outstation cheques.
a) 100:0 b) 75:25 c) 50:50 d) 25:75
261. A differently abled employee and also an employee having differently abled dependents
viz. children and/or spouse shall be eligible for sabbatical leave up to years
during his/her entire career for the reason of self-care or taking care of children and/or spouse.
a) 1 b) 2 c) 3 d) 4
262. To establish the veracity of the Death Certificate(DC) issued abroad, which of the following
is not a valid proof?
a) Attestation of Death Certificate by SBI's Foreign Office
b) Attestation by the Hospital where death occurred
c) Attestation by Notary Public
d) Attestation by Indian Embassy in that country
32
263. Employees are eligible to acquire maximum of houses in their entire career
in the bank by availing loan under IHLS
a) 1 b) 2 c) 3 d) 5
264. For Auto Sweep in SB PLUS minimum threshold balance is Rs.
a) 25000 b) 30000 c) 35000 d) 50000
265. For Auto Sweep in SB PLUS minimum resultant balance should be Rs.
a) 10000 b) 25000 c) 35000 d) 40000
266. It has been decided to extend the facility of special leave to the non-active Sports persons
officiating as at sporting events / tournaments held at the State / National /
International level only
a) Manager of Team b) Judge c) Both a & b. d) None of these
267. Which organisation is the nodal agency for "Credit Enhancement Guarantee Scheme for
Scheduled Castes (CEGSSC) has been launched by Ministry of Social Justice and
Empowerment (MSJ&E), Government of India.
a) IDBI b) SBI c) SIDBI d) IFCI
268. As per Customer Rights Policy the Bank will acknowledge formal complaints within 3
working days and work to resolve it within a reasonable period not exceeding
days.
a) 15 b) 21 c) 30 d) 60
269. Rule 56 (2) of SBIOSR states that on occasions such as marriages, anniversaries, funerals
or religious functions when the making of gifts is in conformity with the prevailing religious
or social practice, an officer may accept gifts from his near relatives but he shall make a
report to the competent authority if the value of the gifts exceeds Rs .
a) 200 b) 500
c) 1000 d) No reporting is necessary.
270. As per Service Tax Rules, paid to vendors while purchasing fixed assets is
eligible for CenVAT credit.
a) Excise Duty/ Countervailing Duty (CVD)
b) VAT
c) Sales Tax
d) Octroi Tax
***
33
ANSWERS TO GENERAL BANKING
1. (d) 28. (d) 55. (b) 82. (c) 109. (c) 136. (c) 163. (d) 190. (a) 217. (d) 244. (c)
2 (b) 29. (d) 56. (b) 83. (c) 110. (b) 137. (b) 164. (a) 191. (b) 218. (a) 245. (d)
3. (d) 30. (d) 57. (c) 84. (d) 111. (a) 138. (d) 165. (c) 192. (d) 219. (a) 246. (a)
4. (d) 31. (b) 58. (c) 85. (c) 112. (b) 139. (b) 166. (b) 193. (c) 220. (b) 247. (c)
5. (d) 32. (d) 59. (b) 86. (b) 113. (d) 140. (b) 167. (c) 194. (b) 221. (d) 248. (c)
6. (a) 33. (d) 60. (c) 87. (c) 114. (c) 141. (a) 168. (d) 195. (c) 222. (d) 249. (b)
7. (a) 34. (a) 61. (b) 88. (c) 115. (d) 142. (a) 169. (c) 196. (d) 223. (c) 250. (d)
8. (d) 35. (b) 62. (c) 89. (b) 116. (c) 143. (b) 170. (b) 197. (a) 224. (b) 251. (a)
9. (b) 36. (a) 63. (d) 90. (d) 117. (b) 144. (b) 171. (a) 198. (d) 225. (b) 252. (d)
10. (b) 37. (d) 64. (c) 91. (b) 118. (b) 145. (b) 172. (c) 199. (a) 226. (c) 253. (b)
11. (b) 38. (c) 65. (b) 92. (d) 119. (d) 146. (a) 173. (c) 200. (a) 227. (b) 254. (c)
12. (c) 39. (d) 66. (d) 93. (a) 120. (b) 147. (d) 174. (b) 201. (c) 228. (b) 255. (c)
13. (a) 40. (a) 67. (c) 94. (c) 121. (c) 148. (b) 175. (b) 202. (a) 229. (c) 256. (a)
14. (a) 41. (b) 68. (b) 95. (d) 122. (b) 149. (d) 176. (d) 203. (a) 230. (d) 257. (a)
15. (a) 42. (c) 69. (e) 96. (b) 123. (d) 150. (b) 177. (c) 204. (c) 231. (a) 258. (a)
16. (a) 43. (a) 70. (c) 97. (d) 124. (c) 151. (c) 178. (c) 205. (b) 232. (c) 259. (d)
17. (c) 44. (b) 71. (a) 98. (c) 125. (a) 152. (b) 179. (d) 206. (c) 233. (c) 260. (c)
18. (b) 45. (c) 72. (a) 99. (b) 126. (c) 153. (c) 180. (d) 207. (b) 234. (d) 261. (b)
19. (d) 46. (b) 73. (c) 100. (c) 127. (a) 154. (a) 181. (b) 208. (a) 235. (d) 262. (b)
20. (d) 47. (b) 74. (c) 101. (b) 128. (c) 155. (a) 182. (c) 209. (c) 236. (b) 263. (b)
21. (b) 48. (b) 75. (a) 102. (b) 129. (b) 156. (a) 183. (c) 210. (a) 237. (a) 264. (c)
22. (a) 49. (a) 76. (d) 103. (d) 130. (a) 157. (d) 184. (b) 211. (d) 238. (c) 265. (b)
23. (d) 50. (d) 77. (a) 104. (d) 131. (a) 158. (b) 185. (b) 212. (d) 239. (d) 266. (c)
24. (b) 51. (a) 78. (b) 105. (c) 132. (d) 159. (c) 186. (d) 213. (c) 240. (a) 267. (d)
25. (d) 52. (a) 79. (b) 106. (c) 133. (a) 160. (d) 187. (c) 214. (b) 241. (a) 268. (c)
26. (c) 53. (b) 80. (a) 107. (d) 134. (b) 161. (b) 188. (a) 215. (a) 242. (d) 269. (b)
27. (d) 54. (c) 81. (b) 108. (c) 135. (a) 162. (c) 189. (d) 216. (d) 243. (c) 270. (a)
34
SME ADVANCES
1. The Loan Policy is an embodiment of the Bank's approach to

a) Sanctioning, Managing and Monitoring Credit Risk
b) Sanctioning, Managing and Monitoring Market Risk
c) Sanctioning, Managing and Monitoring Operational Risk
d) All the above
2. The Bank's Loan Policy applies to :
a) Standard Assets only
b) Overseas Advance plus Domestic Advances
c) Overseas Advances
d) All domestic lendings.
3. Substantial exposure norms are :
a) A cap on further exposures
b) Part of prudential exposure norms set by RBI
c) In-house norms set within the prudential exposure norms and are intended to help in
monitoring credit concentrations
d) Norms which can be breached freely.
4. For the purpose of exposure, the exposure in loan is to be taken as under
a) In case of CC or OD, the sanctioned limit
b) In case of LC or BG, the sanctioned limit
c) In case of TL sanctioned limit but if TL is fully disbursed, then outstanding balance
d) All of these
5. Additional credit exposure to group borrower beyond normal limit of 40%. in case of
infrastructure projects is .
a) 5% b) 10% c) 15% d. 20%
6. The bank's aggregate exposure to Capital Market should not exceedof the Net Worth of
the bank on a solo and consolidated basis
a) 40% b) 10 c) 5% d) 2%
7. For Non Fund based limit the expo-sure for group exposure purpose means % of the
sanctioned limit
a) 25% b) 50% c) 100% d) 125%
8. Additional credit exposure up to 5% beyond normal limit of 15%. permitted to a single
borrower if the limit is forprojects.
a) agriculture investment b) export oriented
c) infrastructure d) none of these
35
9. As per Bank's loan policy document, the maximum aggregate Credit facilities (fund based
and non fund based) to Non-corporate Borrowers (e.g. Partnership, Associations etc.) is:
a) Rs.10 crores b) Rs.50 crores c) Rs.100 crores d) Rs.500 crores
10. According to the loan policy of SBI the maximum aggregate credit facility (FB+NFB) for an
Individual borrower against specified securities is Rs.
a) 25 Cr. b) 50 Cr c) 100 Cr d) No limit
11. Prudential Exposure limit for single and group borrowers other than infrastructure
projects is & % capital of the bank
a) 20% & 40% b) 15% & 40% c) 25%&50% d) 10%&20%
12. Prudential Exposure limit for single and group borrowers including infrastructure projects
is & % capital of the bank
a. 20% & 40% b. 15% & 40% c. 20%&50% d) 10%&20%
13. At whole bank level, the non-fund exposure will not exceed the level of fund
based exposure.
a) 2 times b) 3 times c) 4 times d) 5 times
14. Which of the following does match regarding term loan repayment
a) Short term loan-1 to 3 years b) Medium term loan - 3 to 5 years
c) Long term loan - 5 to 8 years d) All of these
15. Our Bank's definition of SME is based on
a) Activity b) Turnover
c) Investment in PLM d) Investment in Equipment
16. The definition of Small Enterprise as per our Bank's norm is
a) Annual Turnover upto Rs.10 crs b) Annual Turnover upto Rs.25 crs
c) Annual Turnover upto Rs. 5 crs d) Annual Turnover upto Rs.45 crs
17. Medium enterprises as per Bank's norm are those with Annual Turnovr
a) Rs. 5 crs upto Rs.10crs b) Rs. 5 crs upto Rs.25 crs
c) Rs. 5 crs upto Rs. 50 crs d) Rs. 5 crs upto Rs.75 crs
18. As per our own Bank's definition, Mid Corporates are those units whose turnover is more
than and upto
a) 25,000/-, 5 lacs b) Rs.5 crores & Rs.25 crores
c) Rs.50 crores, Rs.350 crores d) Rs.50 crores, Rs.500 crores
19. Expand MSMED Act 2006 ?
a) Micro Small and Medium Engineers Development Act 2006
b) Micro Small and Medium Economy Development Act 2006.
c) Micro Small and Medium Enterprises Development Act 2006.
d) Micro Small and Medium Enterprises Department Act 2006
36
20. As per MSMED Act 2006 small enter-prises engaged in service activities are defined as
those having an investment in equipments above
a) Rs. 5 lacs b) Rs.10 lacs
c) Rs10 lacs upto Rs 2 crs d) Rs. 5 lacs upto Rs 1 crs
21. As per MSMED Act 2006 small en-terprises engaged in manufacturing are defined as
those having an investment in Plant & ma-chinery above
a) Rs. 5 lacs b) Rs.10 lacs
c) Rs. 10 lacs upto Rs. 2 crs d) Rs. 25 lacs upto Rs. 5 crs
22. As per MSMED Act 2006 Medium En-terprises (Services) are those having investment in
equipments above
a) Rs. 2 crs upto Rs. 5 crs b) Rs. 1 cr upto Rs. 2 crs
c) Rs. 10 lacs upto Rs. 2 crs d) Rs. 5 lacs upto Rs. 1 crs
23. As per MSMED Act 2006 Medium Enterprises (Mfg) are those having investment in Plant
& machinery above
a) Rs. 5 cr upto Rs.10 crs b) Rs. 5 crs
c) Rs. 10 cr upto Rs 50 crs d) Rs. 50 crs upto Rs. 100 crs
24. For SSI advances upto Rs.25,000/-, the loan application should be disposed of within a
period of
a) 2 weeks b) 4 weeks c) 1 week d) 8 weeks
25. For SSI advances above Rs.25,000/- and up to Rs. 5 lacs, the loan application should
bedisposed of within a period of
a) 2 weeks b) 7 to 8 weeks c) 4 weeks d) 8 to 9 weeks
26. The various disclosure in the balance sheet of banks aim at
a) Supervision b) Inspection c) Monitoring d) Transparency
27. Cash generation / Cash profit or Cash Accrual means
a) Profit + Depreciation b) Profit less depreciation
c) Net profit d) None of these
28. The loss before depreciation is called
a) Net loss b) Actual loss
c) Accumulated loss d) Cash loss
29. Original cost of fixed asset less Depreciation is
a) Net block b) Gross Block
c) Either a or b d) None of these
30. In a balance sheet, Owners fund means
a) Paid up capital or Capital
b) Paid up capital + Reserve
c) Paid up capital + Reserve - Intangible Assets
d) None of these
37
31. In balance sheet profit is shown under
a) Liabilities b) Assets
c) Current Assets d) None of these
32. The number of banks which can participate in Consortium Advances is
a) Two b) Three c) Five d) Ten
33. DRT is expected to decide a case within days.
a) 60 b) 90
c) 180 d) There is no time limit
34. The decision on an appeal against DRT is to be given by DRAT within days
35. The present definition of Wilful defaulter has been adopted by RBI on the
recommendation of
a) K C Chakraborty Committee b) S S Kohli Committee
c) Deepak Mohanty Committee d) T K A Nair Committee
36. Bank should classify an account as NPA only if the interest due and charged during any
quarter is not serviced fully within from the
a) 90 days, date of debit b) 90days, end of quarter
c) More than 90 days, end of quarter d) More than 90 days, date of debit
37. In case of all Restructuring cases, the moratorium period should be minimum months
a) 3 b) 6 c) 12 d) 24
38. The renewal of Cash Credit limit for Working Capital is stipulated by RBI on
a) Half yearly basis b) Quarterly basis
c) Annual basis d) Bi-annual basis
39. The working capital limit sanctioned by bank, particularly the cash credit limit ,is repaid
out of
a) Capital from promoters b) Sales proceeds from fixed as-sets
c) Capital from markets d) Sales proceeds of Current Assets
40. The term Gross Working Capital or Working Capital represents
a) Current Assets and Fixed Assets
b) Current Assets less Current Liabilities
c) Working capital requirement after deduction of margin
d) Current Assets
41. Which of the following committee did recommended the concept of Working Capital
Term Loan
a) Nayak Committee b) S L kapoor Committee
c) Tondon Committee d) Chore Committee
38
42. Under the Nayak Committee recom-mendation, the quantum of Working Capital limit from
bank is minimum % of the pro-jected annual sales
a) 5 b) 15 c) 20 d) 25
43. The term Liquid Surplus used in computing Working Capital denotes
a) Net Working Capital b) Surplus from operation
c) Cash and bank balance d) Surplus of its over Long Term Uses
44. As per Nayak Committee recommen-dation, the working capital requirement is to be met
by the bank and the borrower in the ratio of
a) 4:1 b) 3:1 c) 5:1 d) 2:1
45. Under the Nayak Committee recommendation, the quantum of contribution of the borrower
is % of the projected annual sales
a) 5 b) 10 c) 20 d) 25
46. Formula for calculating Drawing Power in Cash Credit account is
a) Value of security less margin b) Balance in the account plus margin
c) Value of security plus margin d) None of these
47. Collateral security means
a) Goods pledged with bank in case of cash credit account
b) Share and debenture pledged with the bank for overdraft
c) Security given in addition to primary security
d) Endorsed govt supply bills
48. Under Nayak Committee turn over method for Working Capital, the Current Ratio is
a) 1.33:1 b) 1.25:1 c) 1:1 d) 0.8:1
49. Break Even of a firm can be calculated as
a) Fixed Cost/ Variable Cost b) Fixed Cost/ Total Cost
c) Fixed Cost/Contribution d) Fixed Cost/ Selling Price
50. The quick assets can be calculated as
a) CA - Stock - Prepaid expenses b) CA- BD - Cash
c) BD + Cash + Prepaid expenses d) None of these
51. Tier II Capital mainly consists of .
a) Share capital and disclosed reserves
b) Certain reserves and certain types of subordinated debt
c) Core Capital
d. All of these
39
52. Tier I Capital mainly consists of .
a) Certain reserves and certain types of subordinated debt
b) Share capital and disclosed reserves
c) All the above d. None of these
53. MPBF (Maximum permissible Bank finance) has been replaced with method.
a) ABF b) Cash
c) Turnover d) Operating cycle
54. "Bridge loan" is
a) A temporary advance for meeting unknown contingencies
b) A loan for construction of bridges
c) A loan for bridging working capital gap
d) A temporary loan pending raising equity, term loan etc.
55. An operating cycle means:
a) Six months
b) One calendar year
c) The period during which cash is converted back into cash in WC operations
56. The Bank Guarantees are covered under
a) Sale of Goods Act b) Indian Contract Act
c) N.I.Act d) Companies Act
57. The working capital requirements of SSI units in excess of Rs 5 crores will be assessed
under the
a) Chore Committee method b) Tandon Committee Method
c) PBS Method d) None of these
58. Break even analysis is useful to find out
a) Sales Turnover b) Net profit
c) No profit no loss sales d) None of these
59. The time limit for filing charges with ROC in case of advance to companies is days
a) 30 days from sanction
b) 30 days from documentation/creation of charge
c) 30 days from first disbursement
d0 30 days from full disbursement
60. As per RBI guidelines, any exposure up to crores is treated as a 'Retail
Exposure' for the purpose of Capital calculation.
a) 1 b) 2 c) 3 d) 5
40
61. Credit Risk Assessment as per the New CRA System (CRA 2007) is done on a
point scale:
a) 8 b) 12 c) 14 d) 16
62. What is the Hurdle Grade as per the new CRA System for new accounts / enhancement in
limits of existing accounts ?
a) SB-3 b) SB-4 c) SB-5 d) SB-10
63. No enhancements in credit limits are to be considered in existing accounts rated
below .
a) SB 5 b) SB 9 c) SB 10 d) SB 16
64. A new unit under the new CRA system refers to:
a) a newly incorporated firm - company for a period of 3 years after the start of commercial
production.
b) a newly incorporated firm/company for a period of 3 years from the date of incorporation
c) a newly incorporated firm/company for a period of 2 years after the start of commercial
production.
d) a firm / company for a period of 3 years from the time it came to the Bank.
65. Credit Risk Assessment is now applicable to-categories
a) C&I advances
b) SSI advances
c) C&I, SSI, Trade and Agricultural Advances
d) S.B.F. Advances
66. Under CRA, which risks are evaluated :
a) Management, Industrial & Personal b) Industrial, financial & fiscal
c) Financial, Industrial & Management d) Fiscal, Industrial & Management
67. Country Risk is applicable for borrowers having outside India:
a) 25% or more cash flow b) 25% or more assets
c) More than 25% cash flow or assets d) 25% or more cash flow or assets
68. In the New CRA System, the frequency of rating is :
a) Quarterly b) Half-Yearly c) Annually d) Bi-annually
69. The entry barriers under CRA'2007 are:
a) Full Compliance with environmental regulations.
b) Minimum Score '2' under 'Integrity ' parameter under 'Management Risk'
c) Both A&B
d) None of the Above
70. Basel II has introduced capital charge on the following types of risk for the first time -
a) Market Risk b) Credit Risk
c) Operational Risk d) Technology Risk
41
71. The charge on which of the following is usually not a floating charge:
a) Stocks b) Land and building
c) Book debts d) Spares
72. Which of the following committees is not associated with SSIs ?
a) Kapoor Committee b) Nayak Committee
c) Abid Hussain Committee d) Narasimham Committee
73. What is the indicative bench mark of the Bank in respect of Current Ratio
a) 1 b) 1.25 c) 1.33 d) 1.50
74. Credit Guarantee Fund Trust covers
a) SSI, SME b) SSI, SBF c) SSI only d) All of these
75. CGFTSI (Credit Guarantee Fund Trust for Small Industries) has been renamed as
a) CGTSI b) CGTSE c) CGTMSE d) CGFSMSE
76. CGTMSE is managed by
a) GOI b) SBI c) SIDBI d) a&c
77. Which segment of advances is not covered by CGTMSE?
a) SRTO b) Retail Trade
c) Govt Sponsored Schemes d) Professionals & self employed.
78. What is the lock in period under CGTMSE?
a. 06 months b. 12 months c. 18 months d. 24 months
79. CGTMSE cover can be obtained for Micro & small enterprises upto a limit of
a) Rs.25 lac b) Rs.50 lac
c) Rs.100 lac , FB only d) Rs.100 lac both FB & NFB
80. As per CGTMSE "Primary Security" shall mean :
a) The assets created out of the credit facility so extended
b) Existing unencumbered assets which are directly associated with the project or
business for which the credit facility has been extended
c) Both a & b
d) Both a & b and Personal guarantee of Board of Directors.
81. Maheshwari Committee recommendations deal with
a) Priority Sector Advances
b) Management of NPAs
c) Follow up of McKinsey recommendations
d) None of these
82. In case of takeover of Term Loan the remaining period of scheduled repayment should be
at least:
a) 1 year b) 2 years c) 3 years d) 5 years
42
83. Cash credit account is repaid out of :
a) Sale proceeds b) Net profit
c) Cash accruals d) Sale of assets
84. Cash Credit limit is required for financing of
a) Current assets b) Fixed assets
c) Cash Needs d) Any purpose.
85. Generally Cash Credit limit is sanctioned for a period of
86. The time limit provided to the borrower/guarantor in demand notice to repay the loan under
SARFAESI Act, 2002
87. Under SARFAESI Act, for sale of assets, a notice of is required to be given:
88. Under SARFEASI Act, accounts with minimum balance of Rs. are eligible:
a) Up to Rs.1 lac b) Above1 lakh
c) Rs.10 lac and above d) Above Rs.10 lac
89. SARFAESI Act 2002 is not applicable in the cases
a) Any security interest not exceeding 1lac
b) Pledge of movable as per section 172 of contract act
c) Right of unpaid seller under sec 47 of sales of goods act
d) All of these
90. Term Loans are repayable out of
a) Sales turnover
b) Future earnings of the Unit
c) Sale of Fixed Assets purchased out of Bank's Term Loan
d) Sale of Intangible Assets
91. A cash credit account will become an NPA if the limit is not renewed within:
a) 3 months from due date b) 9 months from due date
c) 6 months from due date d) 12 months from due date
92. Nayak Committee Method of Working Capital assessment assumes
a) Uniform Operating Cycle of 3 months across the board.
b) The SSI unit will fund 25% of the working capital requirements from its own sources.
c) Both the Above
43
93. Stock Statements as at the last day of a month are to be submitted to the Bank:
a) Before the 7th of the succeeding month
b) Before the 10th banking day of the succeeding month
c) Before the 10th working day of the succeeding month
d0 Before the 10th of the succeeding month.
94. Over what amount are the Banks free to fix their prime lending rate for loans ?
a) Rs. 5 lacs b) Rs. 2 lacs c) Rs. 1 lac d) Rs. 10 lacs
95. Notified Centers for creating equitable mortgage are
a) All district headquarters
b) All centers specifically identified by the Bank
c) All centers notified as per Transfer of Property Act
d) All centers identified for the purpose by RBI
96. Hypothecation is defined in Act
a) Indian Contract Act b) Transfer of Property Act
c) NI Act d) SARFAESI Act
97. Where would you classify Trade payable in the Balance Sheet :
a) Current Assets b) Non-Current Liabilities
c) Current liabilities d) None of the above
98. What critical aspects need examination for project appraisal?
a) Technical feasibility, Economic feasibility
b) Financial feasibility, Commercial feasibility
c) Managerial competency
d) All the above
99. The max. period for which a guarantee may normally be issued
a) 1 year b) 1-1/2 years
c) 10 years d) None of the above
100. A Deferred Payment Guarantee is ;
a) A performance Guarantee to overseas buyers
b) A Guarantee for obtaining machinery on credit
c) A Guarantee that can be deferred by applicant
d) A Guarantee that can be deferred by the beneficiary
101. In case of a Book debt Limit, charge of the Bank is created by;
a) Mortgage b) Hypothecation
c) Lien d) Bailment
44
102. A simple mortgage is created by;
a) By deposit of title deeds b) By swearing an affidavit
c) By registering a mortgage deed d) By leasing the property to branch.
103. What do you mean by PBDIT ?
a) Profit before discount, interest and taxes
b) Profit before depreciation, interest and taxes
c) Net Profit
d) Operational profit
104. FFR-I is submitted within weeks of quarter ended.
a) 4 b) 6
c) 8 d) None of the above
105. Contingent liabilities on account of suit filed against a company will be shown in the
balance sheet
a) in the asset side b) in the liabilities side
c) as a footnote d) none of these
106. Good will is
a) Fixed asset b) Intangible asset
c) Misc. asset d) None of the above
107. Which of the among is not a pillar of BASEL-II
a) Minimum working Capital requirement b) Supervisory Review
c) Market Discipline d) None of the above
108. Provision in Standard Category Assets for SME is
a) 0.25% b) 0.40%
c) 1.00 d) None of the above
109. As per new SME document which document is meant for 'Loan-cum-Hypothecation':
a) SME-1 b) SME-2
c) SME-3 d) None of the above
110. The target for Foreign Banks under Priority Sector is % of ANBC or Off-
Balance Sheet Expo- sure whichever is higher
a) 12% b) 22% c) 40% d) 42%
111. The document to be taken for recital for creation of E.M is
a) SME-3 b) SME-4 c) SME-5 d) SME-7
45
112. As for simplified SME documentation there are major documents and rest
are support documents.
a) one b) two c) three d) four
113. In SME Documentation, SME 4 is related to
a) Supplemental Agreement of Loan cum Hypothecation
b) Agreement of Loan cum Hypothecation
c) Guarantee Agreement
d) Letter of Arrangement
114. In SME Documentation, SME 12 is related to
a) Link Letter b) Title Investigation Report
c) Revival Letter d) Deed of Mortgage
115. The target for Domestic Banks under weaker sections for Priority Sector is %
of ANBC or Off-Balance Sheet Exposure whichever is higher
a) No target b) 10% c) 20% d) 40%
116. The target for Domestic Banks under Export Credit for Priority Sector is % of
ANBC or Off-Balance Sheet Exposure whichever is higher
a) No target b) 12% c) 32% d) 42%
117. Capital Adequacy Ratio indicates
a) Capital as a Percentage of Risk-weighted Assets
b) Capital as a percentage of Deposits & other liabilities
c) Capital as a percentage of Investments of the Bank
118. Capital Adequacy Return is required to be submitted by Branches
a) Yearly b) Half-yearly c) Quarterly d) Monthly
119. Committee on Assets Reconstruction Companies (ARCs) was headed by:
a) D.R. Mehta b) M Narasimham c) R.V. Gupta d) C.B. Bhave
120. Parties to Bank Guarantees are:
a) Applicant, Beneficiary & Guarantor.
b) Principal Debtor, Guaranteing Bank.
c) Beneficiary, Promiser & Applicant
d) None of these
121. Margin of safety is related to
a) Cash Credt b) Bank guarantee
c) Cash Credit/Term Loan d) Term Loan
46
122. Securitisation is related to
a) collateral security b) security measures in the bank
c) bill finance d) recycling of funds
123. Average Clause in an insurance policy indicates:
a) Premium payable on the policy
b) The portion of the loss to be borne by the insured for undervalue of the stock
c. Average value of stock
d. None of the above.
124. Gross Profit is:
a) Gross Sales - Cost of Sales
b) Net Sales - Cost of Sales
c) Net Sales - Cost of Production
d) Cost of Sales - Cost of Production
125. Review of Stresses Assets Track-1 focus on
a. Restructuring of loan viable unit b) Quick recovery action
c) All of these d) None of these
126. Review of Stresses Assets Track-2 focuses on
a) Restructuring of loan viable unit b) Quick recovery action
c) All of these d) None of these
127. Special Mention Accounts are a new asset category introduced between
a) Standard Asset and Sub Standard Asset
b) Sub Standard Asset and Doubtful Asset
c) Doubtful Asset and Loss Asset
d) Sub Standard Asset and Loss Asset
128. Stressed Asset Review report has to be submitted by branches with in days
a) 5 b) 10 c) 30 d) 45
129. Special Mentioned Account - Category -I refer to
a. Accounts where interest and installment has not been serviced for 30 day
b. Accounts where interest / installment has not been serviced for 60 day
c. Accounts where interest / installment has not been serviced for 30 day
d. Accounts which are not in default but are showing early signal
130. Special Mentioned Account -Category -II refers to
a. Accounts where interest and installment has not been serviced for 30 day
b. Accounts where interest / installment has not been serviced for 60 day
c. Accounts where interest / installment has not been serviced for 30 day
d. Accounts which are not in default but are showing early warning signal
47
131. SAR (Stressed Assets Review) take care of
a) All NPA account b) All AUCA Account
c) SMA, NPA, AUCA d) All standard accounts
132. Outstanding above Rs. lacs are covered under SAR report
a) 5 b) 10 c) 20 d) 100
133. The purpose of inspection is
a) to ensure proper utilisation of loans
b) to establish and maintain a close relationship between the bank and borrower
c) to ensure prompt repayment of dues
d) all of the above
134. The Pre-sanction process does not include
a. Pre sanction Inspection b. Assessment & Appraisal
c. Monitoring & Control d. Preparing Opinion report
135. Which of the following is not a credit process stage in PRE-SANCTION
a) Appraisal b) Assessment c) Sanction d) Supervision
136. As per new RBI guidelines bank should obtain for properties valued at 50 crores or above
a. Minimum three independent valuation report
b. Minimum two independent valuation reports
c. One independent & one in-house report
d. Banks are free to decide
137. In India, Accounting Standards are formulated by
a) Institute of Chartered Accountants of India (ICAI)
b) International Accounting Standards Committee
c) Accounting Standards Board constituted by ICAI
d) Government of India
138. Fixed Deposits with Banks is classified as:
a) Current Assets b) Fixed Assets
c) Non Current Assets d) Intangibles
139. As per Section 35 of Companies Act, in case of Companies, charge needs to be filed with
ROC only in case the following nature of charge.
a) Hypothecation b) Pledge c) Mortgage d) A&B only
140. The stages in Pre-Sanction Credit Process, in the order in which they are done, are:
a) Assessment, Appraisal & Recommendation, Sanction
b) Appraisal, Assessment & Recommendation, Sanction
c) Appraisal, Assessment, Recommendation, Sanction
d) Appraisal & Recommendation, Assessment, Sanction
48
141. Insurance of motor vehicles financed by us is done:
a) In the name of the borrower and the bank
b) In the name of bank
c) In the name of the borrower
142. Total Outside Liabilities (TOL) is:
a) Total Current Liabilitie
b) Total Term Liabilities
c) Total Current Liabilities + Total Term Liabilities
d) Months' Consumption
143. In terms of analysis of financial data in WC assessment, Form III refers to
a) Operating Statement
b) Balance sheet
c) Particulars of existing / proposed limits from the banking system
d) Comparative statement of C/A and C/L.
144. Cash Budget Method of assessment of WC Limits is used in:
a) Sugar Industry, Tea Industry, Construction Industry
b) Oil industry, Tea industry, construction industry
c) Sugar Industry, Coffee Industry, Construction Industry
d) Sugar Industry, Tea Industry, Cement Industry.
145. NWC is:
a) Long Term Sources - Long Term Uses
b) Working capital gap - other current liabilities
c) Current Assets -Current liabilities other than bank borrowing
d) Non - Current Assets -Current Liabilities
146. The Raw Materials holding level is compared in terms of :
a) Months' cost of Production b) Months' Cost of Sales
c) Months' Purchase d) Months' Consumption
147. Contribution is :
a) Excess of revenue over variable cost
b) Excess of revenue over fixed cost
c) Excess of revenue of over total cost
d) Excess of revenue over operating cost.
49
148. Adjusted TNW is defined as:
a) TNW minus reserves
b) TNW minus share premium account
c) TNW minus loans & advances extended to associate concerns
d) TNW minus debenture redemption reserve
149. Term Loans are repayable out of
a) Sales turnover
b) Future earnings of the Unit
c) Sale of Fixed Assets purchased out of Bank's Term Loan
d) Sale of Intangible Assets
150. A cash credit account will become an NPA if the limit is not renewed within:
a) 3 months from due date b) 9 months from due date
c) 6 months from due date d) 12 months from due date
151. Nayak Committee Method of Working Capital assessment assumes
a) Uniform Operating Cycle of 3 months across the board
b) The SSI unit will fund 25% of the working capital requirements from its own sources
c) Both the Above
152. Stock Statements as at the last day of a month are to be submitted to the Bank:
a) Before the 7th of the succeeding month
b) Before the 10th banking day of the succeeding month
c) Before the 10th working day of the succeeding month
d) Before the 10th of the succeeding month
153. The period of limitation for a registered mortgage is - Years from the date the mortgage
amount becomes due:
a) 3 years b) 5 years
c) 12 years d) No limitation period
154. Norms for Take over of advances under C&I and SME seg-ment for exposures from Rs.25
Lacs and above to less than Rs.10 crores, the CRA of the borrower should be _____ or
better.
a) SB 05 b) SB 07 c) SB 09 d) SB 10
155. The Finished Goods holding level is compared in terms of
a) Months' cost of Production b) Months' Cost of Sales
c) Months' Purchase d) Months' Consumption.
50
156. Cost of Sales is:
a) Cost of Production -Op. Stock of FG + cl. Stock of FG
b) Cost of Production + Op. Stock of FG - Cl. Stock of FG
c) Net Sales - Cost of Production
d) Gross Sales - Cost of Production
157. Working Capital Gap refers to :
a) Current Liabilities - Current Asset
b) Fixed Assets - Current Liabilities
c) Total Current Assets - Other Current Liabilities
d) Current Assets - Current Liabilities
158. The stages in Post-sanction Credit Process, in the order in which they are done, are:
a) Follow-up, Supervision, Monitoring, control
b) Monitoring & control, Supervision, follow-up
c) Supervision, Follow-up, Monitoring & control
d) Follow-up, Supervision, Monitoring & control
159. The limitation period of mortgage is 12 years which will be counted from
a) Execution of document b) Date of creation of mortgage
c) Due date of repayment d) Date of filing legal suit
160. Term Loans which are irregular will be reviewed once in .
a) 3 months b) 6 months c) 9 months d) 12months
161. Early Sanction Review covers exposures of above Rs. 1 cr and below Rs. _____ cr.
a) 2 b) 3 c) 4 d) 5
162. In respect of all loan proposals of Rs. 1.00 cr and above, mandatory search of ti-tle/
encumbrances for a period of not less than _____ years is to be made by the panel
advocate.
a) 13 b) 20 c) 23 d) 30
163. Exposures above Rs. ______ crore are eligible for stock and receivable audit.
a) 5 b) 2 c) 3 d) 4
164. Benchmark for TOL/Adj TNW is _____.
a) 3 b) 4 c) 5 d) 6
165. Benchmark for Long Term Debt/EBIDTA is ______.
a) 3.60 b) 4.50 c) 3 d) 4
166. Benchmark for interest coverage ratio is _________.
a) 2.60 b) 2.00 c) 3.00 d) 2.50
51
167. Norms for Takeover of advances under Agriculture segment
a) ACC - Rs.1 Lac
b) ATL for allied activities - Rs.10 Lacs
c. ATL for other than allied activities - Rs.2 Lacs
d. All of the above
168. Validity of ECR to be treated as ____ months in terms of RBI guidelines
a) 12 b) 15
c) 18 d) 24
169. NPAs should be migrated to SAMG immediately, but in any case within a maximum period
of ______ days from the date of NPA with the approval of the Controllers of the Branches.
a) 90 b) 180
c) 270 d) 365
170. The present cut off limit of Rs.25 lacs for migration of accounts from NBG to SARBs has
been lowered to Rs._____ lacs.
a) 20 b) 15
c) 10 d) 5
171. With a view to aligning the exposure levels to Individual borrowers availing hous-ing finance
only, in line with the present market scenario, it has been decided to increase the present
exposure cap from Rs.25.00 crores to Rs.____ crores.
a0 30 b) 40
c) 50 d) 60
***
52
KEYS TO SME ADVANCES
1 A 21 D 41 C 61 D 81 A 101 B 121 D 141 C 161 D
2 D 22 A 42 C 62 D 82 B 102 C 122 D 142 C 162 D
3 C 23 A 43 A 63 C 83 A 103 B 123 B 143 B 163 A
4 D 24 A 44 A 64 A 84 A 104 B 124 B 144 A 164 B
5 B 25 D 45 A 65 C 85 C 105 C 125 A 145 A 165 A
6 A 26 D 46 A 66 C 86 C 106 B 126 B 146 D 166 A
7 C 27 A 47 C 67 D 87 B 107 A 127 A 147 A 167 D
8 C 28 D 48 B 68 C 88 B 108 A 128 B 148 C 168 B
9 C 29 A 49 C 69 C 89 D 109 B 129 C 149 B 169 B
10 D 30 B 50 A 70 C 90 B 110 C 130 D 150 C 170 C
11 B 31 A 51 B 71 B 91 C 111 C 131 C 151 A 171 C
12 C 32 D 52 B 72 D 92 A 112 C 132 B 152 D
13 A 33 C 53 A 73 C 93 D 113 A 133 D 153 C
14 D 34 D 54 D 74 D 94 B 114 A 134 C 154 A
15 B 35 B 55 C 75 C 95 C 115 B 135 D 155 A
16 C 36 B 56 B 76 D 96 D 116 A 136 B 156 B
17 C 37 C 57 C 77 B 97 C 117 A 137 C 157 C
18 D 38 C 58 C 78 C 98 D 118 C 138 A 158 D
19 C 39 D 59 B 79 D 99 B 119 C 139 D 159 C
20 C 40 D 60 D 80 C 100 B 120 A 140 B 160 B
53
LEGAL ASPECTS OF BANKING
1. Payment in due course is defined under .

a) Section 10 of NI Act b) Section 11 of NI Act
c) Section 10 of Contract Act d) None
2. Hypothecation is defined in which of the following Act ?
a) Transfer of Property Act b) SARFAESI Act
c) Indian Contract Act d) NI Act
3. The charge created with ROC for companies is for which of the following ?
a) Lien b) Mortgage
c) Mortgage& Hypothecation d) Pledge and Hypothecation
4. Who is the ACPIO under RTI Act in our Bank ?
a) GM of the network b) CGM of the Circle
c) RM of the Region d) Branch Managers
5. Income tax attachment order does not attach which of the following amount ?
a) Entire balance in joint accounts b) Balance in Deceased depositor account
c) Fixed Deposit maturing in future date d) Chq sent for collection.
6. A loan is guaranteed by a surety. When the Prinicpal Debtor failed to repay the loan, bank
asked the surety to pay which was complied. On making payment , the surety became
entitled to all rights and remedies which the bank had against the principal debtor. This
right of the surety is called .
a) Right of Subrogation b) Right of redemption
c) Right of Foreclosure d) Right of Lien
7. The bank initiated action against a borrower under SARFAESI Act and sent him 60 days
notice for making payment. The borrower being aggrieved with the action of the bank
makes a representation to the bank. The bank is required to send reply to the representation
within how many days?
a) within 15 days of receiving the representation
b) within 30 days of receiving the representation
c) within 60 days of receiving the representation
d) within 7 days of receiving the representation
8. Dishonor of an electronic fund transfer instruction due to insufficiency of funds in the
account etc., is an offence punishable with imprisonment or with fine or both, similar to
the dishonor of a cheque under the Negotiable Instruments Act 1881. Such a provision
is under which Act ?
a) u/s 25 of PSS Act, 2007 b) Section 138 of NI Act
c) Section 172 of contract Act d) None
54
9. The maximum number of partners in a Banking firm shall not exceed
a) 20 b) 10 c) 2 d) None of these
10. Non-registration of a firm with the Registrar of Assurances attracts the following disability
a) Creditors cannot sue the firm b) The firm cannot sue the debtors
c) Partnership cannot be wound up d) None of the above
11. What can be denied disclosure under the RTI act ?
a) Information adversely affecting the national interest
b) Information barred from publication by Courts
c) Information which would cause a breach of privilege of Parliament
d) All of the above
12. Minimum number of directors in a public limited company must be
a) 5 b) 10 c) 12 d) 3
13. Which among the following is not found in the Memorandum of Association of a Company?
a) Objectives of the Company b) Authorised capital
c) Borrowing powers of Directors d) Registered office
14. As per Section 108 of Indian Evidence Act person will be declared as legally dead, if for a
period of years or more, the persons who would have normally known of his
existence have not heard of him / known of his existence.
a) 12-years b) 7-years
c) 5-years d) 3-years
15. Which of the following accounts does not have the facility of nomination?
a) Safe Deposit Locker a/c b) Term deposit account
c) CapGains Plus a/c d) None of the above
16. Section 45-Z of Banking Regulation Act, 1949 deal with?
a) Return of unclaimed deposits b) Permission to open new branches
c) Maintenance of currency chest d) Return of paid cheque
17. What is "conversion" according to the Negotiable Instrument Act ?
a) Calculating the rupee equivalent of a negotiable instrument expressed in foreign currency
b) Payment of cash against tender of negotiable instrument drawn on the Bank
c) Payment to a holder in due course
d) Wrongful transfer of the benefit of negotiable instrument to a person who is not the
true owner
18. The relationship between the hirers of Bank locker and the Bank is that of:
a) Debtor - Creditor b) Bailor - Bailee
c) Licensor - Licensee d) Principal- Agent
19. What is a contract of Insurance ?
a) It is a contract of Indemnity b) It is a contract of Pledge
c) It is a contract of Guarantee d) All of these
55
20. The provisions of Consumer Protection Act,1986 are applicable to the services rendered
by the Banks .
a) To the customers of the Bank only
b) To the customers and the users of the services irrespective of whether the service is gratis
or for consideration
c) To the customers and any user of Bank's services against consideration
d) All of these
21. What does "Assignment" refer to ?
a) Immovable property b) Ownership rights
c) Transfer of interest in actionable claims d) None of the above
22. The document that governs the relationship between the company and the outside is known
as
a) Article of Association b) Regestration certificate
c) Memorandum of Association d) None
23. Mortgage is defined in ..
a) Sale of Goods Act b) Contract Act
c) Transfer of property Act d) Companies Act
24. A charge by way of mortgage can be created on .
a) All assets b) Plant and machinery
c) All immovable properties d) none of the above
25. Pari Passu charge refers to a charge .
a) Ranking equally in priority, regardless of quantum of advances
b) Merely notional in nature
c) Ranking equally in priority in proportion to the lender's share of advance
d) None of these
26. RBI can issue directive to banks in respect of their loan / advances, under sec 21 of:
a) Banking Regulation Act b) Negotiable Instrument Act
c) SBI Act d) RBI Act 1934
27. Which section of limitation act 1963 provides an extension of limitation period on
acknowledgement of debt ?
a) 16 b) 17 c) 18 d) 19
28. Document that contains the purpose of the company as well as all the duties and
responsibilities of its members is known as ..
a) Article of Association b) Regestration certificate
c) Memorandum of Association d) None
56
29. Lien or negative lien are created on the asset of a limited company under:
a) Registration of charge necessary u/s 130 of company act
b) Registration of charge necessary u/s 125 of company act
c) Registration is not required
d) It is essential to secure the loan
30 The right to set-off of a banker has been conferred on the bank under
a) NI Act b) Indian Contract Act
c) RBI Act d) Civil Procedure Code
31. Under which of the following situations, the Clayton's rule applies
a) Payment of cheque b) Right of set-off
c) Right of appropriation d) B and c
32. In the process of issuing a garnishee order court first issue
a) Order Nisi b) Order primary
c) Order attachment d) Order absolute
33. According to Hindu minority act and guardianship act 1956, the natural guardian of married
minor Hindu girl is
a) Husband, if he is a major b) Father in law, if husband is minor
c) Mother of the girl d) a and b
34. Usually, a loan obtained by a minor cannot be recovered but when it is given for the necessity,
the loan can be recovered from his property. This provision is as per
a) Sec 11, Indian contract act1872 b) Sec 68, Indian contract act1872
c) Sec 11, majority act1872 d) Sec 11,Indian minority act 1872
35. The Basel-III capital regulation has been implemented from in India.
a) 01.04.2014 b) 01.04.2013
c) 01.04.2012 d) None
36. A partnership firm can be registered with
a) Registrar of firms c) Registrar of companies
b) Registrar of deeds d) Registrar of estate
37. A company winds up its affairs and the Person appointed for this purpose by the court
is .
a) Executor b) Administrator c) Receiver d) Liquidator
38. Who issues Certificate of Incorporation ?
a) Central Govt b) Ministry of corporate affairs
c) Registrar of firms d) Registrar of Companies
57
39. Which of the following documents will have to be carefully examined by a bank branch,
when It is approached by Administrator of a deceased estate?
a) Succession certificate b) Letter of probate
c) Letter of Administration d) Liquidation order
40. Insolvency rules are governed by
a) State insolvency act 1920 b) Insolvency act 1879
c) Presidency towns insolvency act d) a and c
41. Who among the following is empowered to issue the succession certificate ?
a) Special executive magistrate b) Tahasildar
c) Dist judge or high court d) Presiding officer of DRT
42. A mandate is
a) A promise to pay a loan
b) An authority of principal to his agent for operating the account
c) An order of the bank to the customer
43. 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
44. A minor can draw, endorse and accept the cheque/negotiable instrument to bind
a) Self b) Others
c) Drawer d) All other except self
45. A karta of HUF has an implied authority to
a) Delegate his authority
b) To raise loan and pledge securities
c) To raise loan and create charge on family property for family business
d) All of the above
46. Basel-III capital regulation wil be fully implemented in India by
a) 31.03.2015 b) 31.03.2017 c) 31.03.2018 d) 31.03.2017
47. Bank does not disclose the affairs of the customer's account and maintain secrecy owing
to
a) Sec 27 of BR Act
b) Sec 17 RBI Act
c) Sec 13, Banking Company acq.& trf of u/t Act 1970
d) Sec 43, Banking Secrecy Act
58
48. On dishonor of cheque, what kind of remedy is available to the holder of the cheque under
NI Act ?
a) Holder can file the complaint with ombudsman
b) Holder can file the case in a normal court
c) Holder can file the complaint with 1st class magistrate
d) Holder can file the complaint with RBI
49. Garnishee order attaches:
a) Balance in term deposit
b) Term deposit payable at maturity
c) Unrealized proceeds of instruments sent for collection
d) Both a & b
50. The legal status of a nominee is
a) Trustee for legal heirs b) The depositor
c) Agent of legal heirs d) Agent of the depositor
51. Banking Ombudsman is established as per act.
a) BR act b) RBI act c) NI act d) None
52. BCSBI is a registered entity under act.
a) Societies Regn act b) RBI act
c) NI act d) BR act
53. The Central Information Commission (CIC), at the time of deciding any complaint or appeal
has the power to impose a penalty of Rs. per day subject to a total of
Rs. against the CPIO as per the RTI act.
a) 250, 25000 b) 250, 20000 c) 100, 10000 d) None
54. Who can seek information from the Bank.
a) Individual b) Organisation c) Association d) All
55. In respect of application received through a CAPIO, the CPIO has a time limit of
days from the date of receipt of the application by the CAPIO.
a) 35 b) 30 c) 25 d) 20
56. If the information sought under the RTI act by the applicant concerns the life or liberty of a
person, the same has to be disposed within days of the receipt of the request.
a) 2 b) 30 c) 5 d) 10
57. An applicant who does not receive a reply under the RTI act within the specified period or
an applicant who is aggrieved by a decision of the CPIO can prefer an appeal within
days to the Appellate Authority in the Bank.
a) 30 b) 35 c) 5 d) 10
59
58. An applicant has the right to file a second appeal to CIC within days from the
date of decision of the Appellate Authority
a) 90 b) 35 c) 30 d) 10
59. Under the provisions of the RTI act, the appellate authority for branches in the circle is
a) GM of the Network b) CGM

c) DGM of Module d) None of these
60. One can file a complaint before the Banking Ombudsman if the reply is not received from
the bank within a period of after the bank concerned has received one s
representation, or the bank rejects the complaint, or if the complainant is not satisfied with
the reply given by the bank.
a) A month b) 60 days c) 90 days d) A year
61. what is the maximum limit on the amount of compensation as specified in an award by the
Banking Ombudsman
a) 10 lac b) 15 lac c) 20 lac d) 30 lac
62. The Banking Ombudsman may award compensation to the complainant only in the case
of complaints relating to for mental agony and harassment.
a) Credit card operation b) Debit card operation
c) Deceased settelement d) None of these.
63. Appellate Authority is vested with under the provisions of the Banking
Ombudsman Act.
a) a Deputy Governor of the RBI b) a Regional Director of the RBI
c) High Court d) Supreme Court
64. The District Forum Under the COPRA can hear claims upto a maximum of
65. President of State Commission Under the COPRA is a judge from the
a) High Court b) District Court c) Sessions Court d) None of these
66. The apex appellate authority under the provisions of the COPRA is
a) Supreme Court b) High Court c) National Forum d) None of these
67. Under the provisions of the COPRA, Appeal from one forum to another forum has to be
filed within days from the date of the decision.
a) 30 b) 35 c) 5 d) 10
68. In case of Bank Deposits the Law of Limitation operates from the Date of
a) Deposit b) Maturity c) Demand d) Not Applicable
60
69. A physical grievance from a pensioner has to be acknowledged within a period of
days.
a) 1 b) 2 c) 3 d) 4
70. Payment of Balance to the claimant in unclaimed deposit account up to Rs.
only will be processed directly by the branches after due diligence and KYC compliance.
a) 5 b) 1.5 c) 1 d) 2
71. Bank's right to be recouped from the companies out of their future profits / cash accruals to
whom concessions and reliefs were made available as restructure/rehabilitation packages
is called as .
a) Right to set off b) Right to interest
c) Right to recompense d) Right to commission
72. The amount to the credit of any account in India with any bank which has not been operated
upon for a period of ten years will be transferred to fund.
a) Depositor Education and Awareness b) Rural Infra Development
c) Financial Education d) Rural Poverty Alleviation
73. Tax is required to be deducted at source when rent payments made in a financial year
[including advance, if any] exceed Rs. lac.
a) 1.8 b) 2 c) 2.5 d) 1.5
74. When Fees for professional and technical services in a financial year exceed
Rs. lac TDS is required to be made.
a) 1.5 b) 1 c) 0.5 d) 0.3
75. Due date of payment of tax for the deductions made in March is
a) 30th Apr b) 07th Apr
c) 05th May d) None of the above
76. Form 24Q/26Q/27Q is associated with
a) Yrly TDS statement b) Qrtly TDS statement
c) Yrly Service Tax statement d) Qrtly Service Tax statement
77. PAN of our Bank is
a) Different for each branch. b) AAACS8557K
c) AAACS8577K d) None of the above
78. The periodicity of submission of Form 60/61 to IT deptt is
a) Halfyrly b) Yrly c) Monthly d) Weekly
79. The periodicity of submission of Form15(G/H) to IT deptt is
a) Halfyrly b) Yrly c) Monthly d) Weekly
61
80. Which statement is not true out of the following four ?
a) Form 60/61 submitted during opening of SB accounts are to be submitted to the IT
authority.
b) Form 60/61 submitted during opening of FD accounts exceeding Rs50,000.00 are
to be submitted to the IT authority.
c) PAN/Form60/61 is obtained for Deposit in cash aggregating fifty thousand rupees
or more, with a banking company during any one day;
81. Obtaining revival letter has since been dispensed in
a) STD TL b) ALL TL c) STD CC d) ALL CC
82. Death certificate is recorded in
a) Sundry Doc regester b) Other Doc regester
c) Branch Doc regester d) None
83. CA balance earns interest incase of
a) Overdraft b) Death of the depositor
c) Insolvency of the depositor d) None
84. Service Tax rate has been enhanced to %.
a) 12 b) 13 c) 10 d) 14
85. A Pvt Ltd company has minimum paid-up share capital of lakh rupees.
a) 2 b) 3 c) 1 d) 4
86. All companies to have registered office within days of its incorporation.
a) 20 b) 30 c) 15 d) 180
87. A cheque payable to a company which has gone into liquidation is to be endorsed by
a) MD b) Official administrator
c) Any director d) Official Liquidator
88. Department of Posts has the exclusive privilege of conveying letters and receiving,
collecting, dispatching and delivering letters by post from one place to other under
a) Indian Post Office Act, 1898. b) ESMA 1991

c) BR Act d) SBI Act
89. Public trusts are governed by
a) Public trust act b) Religious & Charitable Endowments Act
c) Wakf Act. d) Any one as per the requirement
62
90. is the administrative authority of LLP.
a) RoC b) SEBI c) MCA d) None
91. If a person is missing for years, the claimants may approach the court of law
for declaring them as legal heirs.
a) 5 b) 10 c) 7 d) 12
92. Succession certificate doesn't cover .
a) Gold ornaments/boxes. b) Deposits in SB account
c) Deposits in CC account d) Deposits in Current account
93. Nomination facility is not available to
a) Minor depositor b) E/S joint locker hirers
c) E/S operated joint depositors d) Joint operator joint depositors
94. form is used for change/variation in nomination.
a) DA3 b) DA1 c) DA2 d) DA4
95. Account payee cheques can be paid to
a) Only the first payee mentioned on the cheque
b) Any endorsee
c) Third party after due endorsement and delivery
d) ANYONE of the above
96. NI Ammendment Ordnance 2015 deals with
a) Defines an e-cheque b) Jurisdiction under section 138
c) Both a & b d) NONE of the above
***
KEYS TO LEGAL ASPECTS OF BANKING
1. (a) 2. (b) 3. (c) 4. (d) 5. (a) 6. (a) 7. (d) 8. (a) 9. (b) 10. (b)
11. (d) 12. (d) 13. (c) 14. (b) 15. (d) 16. (d) 17. (d) 18. (c) 19. (a) 20. (c)
21. (c) 22. (c) 23. (c) 24. (c) 25. (c) 26. (a) 27 (c) 28. (a) 29. (c) 30. (b)
31. (c) 32. (a) 33. (d) 34. (b) 35. (b) 36. (a) 37. (d) 38. (d) 39. (c) 40. (d)
41. (c) 42. (b) 43. (b) 44. (d) 45. (d) 46. (c) 47. (c) 48. (c) 49. (d) 50. (a)
51. (a) 52. (a) 53. (a) 54. (d) 55. (a) 56. (a) 57. (a) 58. (a) 59. (a) 60. (a)
61. (a) 62. (a) 63. (a) 64. (a) 65. (a) 66. (a) 67. (a) 68. (c) 69. (c) 70. (c)
71. (c) 72. (a) 73. (a) 74. (d) 75. (a) 76. (b) 77. (c) 78. (a) 79. (c) 80. (a)
81. (a) 82. (a) 83. (b) 84. (d) 85 (c) 86. (c) 87. (d) 88. (a) 89. (d) 90. (a)
91. (c) 92. (a) 93. (b) 94. (a) 95. (a) 96. (c)
63
MCQ ON KYC & AML
1. KYC, AML & CFT guidelines are issued under act.

a) KYC Act b) PMLA 2002 c) BR Act d) NI Act
2. FATF (Financial Action Task Force on Money Laundering) also known as GAFI
(Groupe d'action financiere) has its head quarters at
a) New Delhi b) London c) Paris d) Geneva
3. Section 12 of PMLA places the following obligations on the Bank except
a) Maintaining a record of prescribed transactions & preserving records there of.
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
4. Under KYC/AML/CFT/Fraud prevention measures, observance of KYC compliance and
fraud prevention day is observed on..
a) 1st August b) 5th August
c) 1st September d) 5th September
5. The Anti Money Laundering Cell of the Bank has been established at
a) Jaipur b) Nagpur c) Bhubaneswar d) New Delhi
6. In case the PoS transaction amount is Rs. and above, the merchant is required
to obtain the copy of PAN in case of domestic card transaction.
a) 20000 b) 150000 c) 100000 d) 50000
7. Smurfing, Layering and Integration are three types of
a) Money laundering Activity b) Money tracking Activity
c) Source tracking Activity d) User tracking Activity
8. The Software used for generation of Suspicious Transactions Report is known as:
a) E-KYC b) AMLOCK c) E-BANCS d) E-AML
9. Which of the following is the key element of KYC/AML/CFT?
a) Customer Identification & Acceptance
b) Customer Identification & Transaction Monitoring
c) Customer Acceptance, Customer Identification, Risk Categorization & Monitoring
of transaction
d) Customer Acceptance & Risk Management
64
10. "Controlling ownership interest" means ownership of or entitlement to more than
percent of shares or capital or profits of a company.
a) 50 b) 10 c) 15 d) 25
11. Which is not one of the documents from the "Officially Valid Documents" list prescribed by
the RBI.
a) Post office ID b0 PAN Card c) DL d) Adhaar
12. Facilities/Restrictions in 'Small account' includes
a) the aggregate of all credits in a financial year does not exceed rupees one lakh
b) the aggregate of all withdrawals and transfers in a month does not exceed rupees
ten thousand
c) the balance at any point of time does not exceed rupees fifty thousand
d) All the above
13. For Low risk customers, Customer Identification data should be updated once in
years.
a) 3 b) 4 c) 10 d) 8
14. Branches may open bank account in favor of foreign students studying in
India.
a) SB b) NRO c) CA d) NRE
15. As per the Simplified KYC guidelines, the current limits for balance in Small Deposit
Accounts should not exceed
a) Rs.20,000 b) Rs.50,000 c) Rs.1,00,000 d) Rs.2,00,000
16. Counterfeit Currency Reports should be submitted to: -
a) LHO KYC Deptt b) Controlling Office
c) FIU-IND d) None of the above
17. Politically exposed persons are:
a) Individuals who are or have been entrusted with prominent public function in a
foreign country
b) MLAs and MPs
c) Individuals related to a political party
d) All the above
18. Cash Transaction Reports (CTRs) are required to be compiled by branches and submitted
to Controllers for onward transmission to FIU-IND at intervals.
a) Weekly b) Fortnightly c) Monthly d) Bimonthly
19. Cash withdrawals and deposits for Rs. lacs and above in deposit, cash credit
and overdraft accounts to be recorded in a separate register and reported to controlling
office every month.
a) 5 b) 10 c) 15 d) 20
65
20. As per the PML Act. all documents pertaining to customers' KYC compliance and
transactions need to be preserved, after cessation of relationship for years.
a) 10 b) 5 c) 15 d) 20
21. Ceiling for remittance of funds by IOI against cash is:
a) Less than Rs.50000 b) Less than Rs.10000
c) Less than Rs.20000 d) Less than Rs.100000
22. Which of the followings is/are High Risk Category accounts/customers ?
a) Politically Exposed person of foreign origin
b) Bullion Dealers/jewellers
c) Non Resident Customers (NRIs)
d) All of the above
23. Individuals with total deposits of Rs.1.50 Crores or more are categorised as
risk customers.
a) HIGH b) MEDIUM c) LOW d) NONE of these
24. he term CFT stands for: -
a) Combating Financing of Terrorism b) Criminal Fund Transfer
c) Criminal Financial Transactions d) Codes For Transactions
25. Individual Account holder with Credit/debit summations of Rs.2.00 crores & more per annum
are categorised as risk customers.
a) HIGH b) MEDIUM c) LOW d) NONE of these
26. For High & Medium Risk categories of customers, periodicity of updation of personal
information/ data is at least once in year(s).
a) 2&5 b) 2&8 c) 3&5 d) 5&10
27. New accounts of individuals opened under Low Risk while on boarding, during first
days of opening the account are classified as medium risk.
a) 90 b) 180 c) 60 d) 365
28. Non - Individual accounts with credit/debit summations of Rs.1.5 crore p. a. is classified
as risk account.
a) HIGH b) LOW
c) MEDIUM d) ANYONE of these
29. In case of Trust Account, KYC compliance will be ensured by obtaining verified copies of
a) Registration certificate
b) Trust deed
c) An officially valid document in respect of the person holding power of attorney to
transact on its behalf
d) All of the above
66
30. Extra precautions to be taken in accounts of fiduciary nature include(s) :
a) Obtaining evidence of identity of intermediaries
b) Verifying identity of the beneficiaries
c) Enquiring into the details of the nature of the Fiduciary Relationship
d) All the above
31. Bank has decided to fix following thresholds, subject to review from time to time, for filtering
transactions and generating STR alerts for customer accounts.
a) Low Risk: 50.00lac b) Medium Risk: 30.00 lac
c) High Risk:10.00lac d) All of these
32. "Non Profit Organization" (NPO) means
a) Any entity or organization that is registered as a trust or a society under the Societies
Registration Act, 1860
b) A company registered under section 25 of the Companies Act, 1956
c) Both A & B &
33. Accounts of Non face to face customers can be opened by a bank on the basis of ID &
Residential proof certified by :
a) Notary Public b) Official of Indian Embassy
c) A person known to Bank d) All the above
34. shall be the Principal Officer for AML/CFT matters who shall be responsible
for implementation of and compliance with this policy in our Bank.
a) Chief General Manager (AML/CFT) b) General Manager (AML/CFT)
c) Dy General Manager (AML/CFT) d) Asst General Manager (AML/CFT)
35. Which of the following transactions are exempted from KYC guidelines?
a) Customer to Customer domestic fund transfer
b) Cross Boarder Customer to Customer electronic funds transfer
c) Inter Bank funds transfer where both the senders and receivers are Banks.
36. Where the client is a trust, the Bank, shall identify the beneficial owners of the client and
take reasonable measures to verify the identity of such persons, through the identity of the
settler of the trust, the trustee, the protector, the beneficiaries with or more
interest in the trust.
a0 25 b) 15 c) 10 d) 5
37. Money received on deposit for a fixed period of days and above is called
Term Deposit.
a) 7 b) 15
67
39. The maximum amount to be accepted in Term Deposits on behalf of a minor, without
production of guardianship certificate, will be restricted to Rs.
a) 2 lac b) 1 lac c) 0.5 lac d) 5 lac
40. Branches are to rely upon the Guardianship Certificate issued by for the
purpose of opening / operating accounts of persons with mental disabilities.
a) The District Court under Mental Health Act
b) The Local Level Committees under Mental Health Act
c) Either a or b
d) Only a
41. Sale of gold coins of value Rs. and above against cash is not permitted.
a) 50000 b) 20000 c) 100000 d) 150000
42. RBI has stipulated that banks should impose 'partial freezing' on KYC non-compliant
accounts in a phased manner. Here 'partial freezing' means .
a) Restricting debit & credit transactions
b) Restricting credit transactions
c) Restricting debit transactions
43. To comply with the revised RBI guidelines, it is necessary that two notices be sent to the
KYC non-compliant account holders afresh with a response time of month(s) each.
a) 3 b) 2 c) 1 d) Half
44. Electricity bill not more than months old can be taken as proof of address.
a) 2 b) 3
45. Which of the followings is the supplier of the "Anti Money Laundering" software?
a) M/S G.E.Capital b) TCS Limited c) 3i Infotech d) IDRBT
46. Bank's PRM (Proactive Risk Manager) software has been implemented at the PRM Cell,
Jaipur, to analyse .
a) Transactions to strengthen fraud control system
b) Alerts, based on ATM / POS / e?Com transactions, generated on various business
rules built in the software
c) Both a & b
d) None of these
68
47. During the 30 days period, the NRO account of foreign students may be operated with a
condition of allowing foreign remittances not exceeding USD into the account
and a cap of monthly withdrawal to Rs. pending verification of address.
a) 1000, 50000 b) 10000, 50000 c) 10000, 10000 d) 5000, 50000
48. Students with Pakistani nationality will need prior approval of the for opening
the account.
a) RBI b) GoI c) Controller d) FEMAAuthority
49. Information accompanying all domestic wire transfers of Rs. and above must
include complete originator information.
a) 50000 b) 10000 c) 100000 d) 500000
50. Additional information to be collected for risk categorisation constitute(s)
a) purpose/reason for opening the account or establishing the relationship
b) anticipated level and nature of the activity that is to be undertaken
c) expected source of funds
d) details of occupation / employment and sources of wealth or income.
e) All of the above
51. Central KYC Records Registry (CKYCR) has been set up by the GoI in association with
.
a0 CERSAI b) SEBI c) NPCI d) CCIL
***
ANSWERS TO KYC & AML
1. (b) 2. (c) 3. (d) 4. (a) 5. (a) 6. (d) 7. (a) 8. (b) 9. (c) 10. (d)
11. (a) 12. (d) 13. (c) 14. (b) 15. (b) 16. (c) 17. (a) 18. (c) 19. (b) 20. (b)
21. (a) 22. (d) 23. (a) 24. (a) 25. (a) 26. (b) 27. (b) 28. (b) 29. (d) 30. (d)
31. (d) 32. (c) 33. (d) 34. (b) 35. (c) 36. (b) 37. (a) 38. (a) 39. (a) 40. (c)
41. (a) 42. (c) 43. (a) 44. (d) 45. (c) 46. (c) 47. (a) 48. (a) 49. (a) 50. (e)
51. (a)
69
PER SEGMENT DEPOSITS
1. The service, called 'My WILL Services Online' enables individuals to create a
online in an easy, transparent, hassle free and confidential manner.
a) Testimony b) will
c) confidential business doc d) secrete transactions
2. What is the new service provided to the customer can get their mini statement, account
balance, blocking ATM Card, home /car loan features in just a Missed call / SMS, from the
mobile number registered with bank ?
a) SBI Quick b) SBI Fast c) SBI Mobi d) SBI Freedom
3. Government of India has lunched Gold Scheme
a) Sovereign gold bonds b) Sovereign gold coin
c) Gold monetization scheme d) All of these
4. Under the new gold monetization scheme, the banks will be allowed to take a minimum
deposit of how much of gold from individuals ?
a) 30 grams b) 50 grams c) 20 grams d) 100 grams
5. What is the minimum and maximum gold in grams can invest in Sovereign Gold Bonds
Scheme per person per fiscal year ?
a) 1, 500 b) 2, 500 c) 5,500 d) 10, 500
6. What is the fixed rate of interest paid in Sovereign Gold Bond per annum on the amount of
initial investment ?
a) 2% b) 2.50% c) 2.75 % d) 3%
7. What is the expand form of CSEP ?
a) Customer Service Excellence Project
b) Customer Service Experience Project
c) Customer Service expectation Project
d) Customer Service Satisfaction Project
8. What is the expand form of FATCA ?
a) Foreign Account Tax Compliance Act
b) Foreign Account Tax Corporate Account
c) Foreign Accounting Tax Compliance Act
d) Foreign Accounting Tax Computation Tax
9. With which country India signed the FATCA agreement.
a) UK b) USA c) France d) Russia
70
10. Full form of ASBA is
a) Application Supported by Blocked Account
b) Account Supported by Blocked Amount
c) Amount Supported by Blocked Account
d) Application Supported by Blocked Amount
11. RBI has advised the Banks to display on website the list of Unclaimed Deposits
which are inactive/inoperative for 10 years or more.
a) RBI b) GOI c) Bank's Own Site d) SEBI
12. Balance in the accounts which have been not operated upon for more than 10yeras and
above will be transferred to of RBI
a) Deposit Education Awareness Fund
b) Depositors Education Awareness Fund
c) Depositors Education Award Fund
d) Deposit Education Accumulated Fund
13. The paper less KYC is called
a) c-KYC b) U-KYC c) e-KYC d) A-KYC
14. What is the INB daily transaction limit and PoS limit in Pehli Udaan ?
a) Rs. 2000/- b) Rs. 3000/-
c) Rs. 4000/- d) Rs. 5000/-
15. What is the amount of loan that can be sanctioned against SBI Tax saving FD ?
a) 90% b) 85%
c) No loan d) 95%
16. What is the lock in period in SBI Tax saving FD ?
a) 5years b) 10years
c) entire period of the FD d) No lock in
17. Surabhi SB or CA linked to
a) CLTD b) MOD c) Sweep d) None
18. What is the maximum period of CLTD in Surabhi ?
a) 1 year b) 2 years c) 3 years d) 5 years
19. What is the minimum threshold limit for sweep in Surabhi account ?
a) Rs. 25000/- b) Rs. 30000/- c) Rs. 40000/- d) Rs. 50000/-
20. What is the facilities can be given in Capgain plus account ?
a) ATM b) Cheque Book c) Loan d) None of these
71
21. What is the maximum period of deposit for the benefit of girl child can obtained ?
a) 18 years b) 14 years c) 10 years d) None of these
22. What is QAB in Sahaj Account ?
A) Rs. 2000/- b) Rs. 10000/- c) Rs. 1000/- d) Rs. 5000/-
23. What is the penalty for non maintance of QAB in Sahaj account ?
a) Rs. 200/- b) Rs. 300/- c) Rs. 500/- d) Rs. 1000/-
24. What is cash withdrawal limit permitted at cash counter in sahaj account ?
a) Rs. 100000/- b) Unlimited
c) Rs. 500000/- d) Not allowed
25. What is the maximum cash deposit in counter per day allowed in sahaj account ?
a) Unlimited b) Rs. 10000/- c) Rs. 50000/- d) Rs. 100000/-
26. What is QAB in Shakti Account ?
a) Rs. 10000/- b) Rs. 20000/- c) Rs. 50000/- d) Rs. 100000/-
27. What is the penalty for non maintance of QAB in Sahaj account ?
a) Rs. 500/- b) Rs. 750/- c) Rs. 1000/- d) Rs. 800/-
28. What is cash withdrawal limit permitted at cash counter in sahaj account ?
a) Rs. 100000/- b) Unlimited
c) Rs. 500000/- d) Not allowed
29. What is the penalty for non maintance of QAB in power joyti account ?
a) Rs. 2500/- b) Rs. 3000/- c) Rs. 1000/- d) Rs. 2000/-
30. What is the maximum cash deposit allowed in power jyoti plus for bokers ?
a) Rs. 100000/- b) Unlimited c) Rs. 500000/- d) Not allowed
31. Which one of the following Variant of Savings Bank Account has been withdrawn by
the Bank.
a) Basic account b) SBI Tiny-OD accounts
c) No-Frill Account d) Small account
32. In which of the following accounts full KYC is required at the time of opening ?
a) Small account b) Tiny Account
c) SBI Tiny-OD accounts d) Basic Saving bank Deposit Account
33. What is the maximum age limit to open a Yuva SB Account ?
a) 45 b) 30 c) 28 d) 21
72
34. Which one of the following is not a facility extended to Yuva savings Bank accounts
holders
a) Yuva Card (Vis[A], which have many concessionary/ complementary facilities, will
be issued free of cost
b) One draft / Bankers Cheque will be issued free, per calendar month, favouring
Educational Institutions or for applying jobs
c) Free remittance through RTGS/NEFT upto of Rs. 50,000/- per month
d) Free collection of one cheque, with a ceiling of Rs. 20,000/- per month
35. Bank has introduced new Savings Bank product exclusively for the minors namely
a) Pehla Kadam and Pehli Udan b) Pehla charan and Pehli Siksha
c) Pehla account and Pehli accountant d) None of the above
36. Which of the following is correct regarding concessions extened to Basic Savings Bank
customers?
a) Minimum services like: ATM-cum-Debit card will be issued free of cost and no. annual
maintenance charge will apply
b) Receipt/ credit of money through electronic payment channels like NEFT/RTGS will
be free
c) Deposit/ collection of cheques drawn by Central/State Government will be free
d) Deposit of Cash at Bank Branch will be free
e) All of the above
37. Who is the sanctioning authority for activation of the account and payment of balances, in
case of unclaimed deposit of balance more than one lakh, which is being claimed by
the nominee or legal heirs?
a) Branch Manager b) Regional Office
c) Zonal Office d) Local Head Office
38. The minimum amount of installment in Recurring Deposit Account at rural areas is :
a) Rs.20/- b) Rs.50/- c) Rs.100/- d) Rs.200/-
39. The minimum amount of installment under the Recurring Deposit Account at metropolitan/
urban/ semi-urban centres is :
a) Rs.250/- b) Rs.500/- c) Rs.100/- d) Rs.50/-
40. The maximum period of deposit in case of Recurring deposit accounts is:
a) 60 months
b) 100 months
c) 120 months
d) As long as the depositor wish to continue
41. The minimum period of deposit under Recurring Deposit Account is:
a) 6 months b) 12 months c) 24 months d) None of them
73
42. The word "auto-sweep" is used in connection with one of the following schemes:
a) Tax Saving Term Deposit Scheme b) Savings Plus Scheme
c) Kisan Mitra Jama Yojana d) Credit Cards
43. What is the minimum age limit to open a Yuva SB Account ?
44. The minimum deposit requirement in term deposit under the MOD scheme is
a) Rs. 5,000/- b) Rs. 7,000/- c) Rs.10,000/- d) Rs. 20,000/-
45. What is the minimum QAB (quarterly average Balance ) to be maintained under premium
Savings bank account ?
a) Rs. 10,000 b) Rs. 20,000 c) Rs. 25,000 d) Rs. 50,000
46. Which one of the following is not a benefit extended to premium SB account holders:
a) Unlimited number of debits
b) ATM-cum-Debit Gold cards (Master/ Vis[A] will be issued, free of cost
c) No service charges in respect of outward RTGS/ NEFT transactions
d) Free issue of demand Draft and collection of cheque
47. Maximum amount that can be drawn by cheque in a SB A/c is .
a) Rs. 5,000/- b) Rs. 10,000/- c) Rs. 50,000/- d) Unlimited
48. When blind/illiterate depositor is unable to present himself physically to withdraw money,
his signature/thumb impression should be attested by:
a) Staff member
b) A depositor
c) Introducer of the A/c
d) Two persons known to the Bank in the presence of an authorized official of the Bank
at his/her place
49. Maximum amount that can be accepted in the Savings Bank account of the minor opened
under Pehla Kadam/ Pehli Udan products.
a) Rs. 200000/- b) Rs. 300000/- c) Rs. 500000/- d) Rs.10,00000/-
50. In case of deposits under Senior Citizen Deposit Scheme, signature of nominee duly
attested by the depositor is taken on.
a) The account opening form b) Separate piece of paper
c) The nomination form d) None of the above
51. If the balance in a Savings Plus account falls below the stipulated minimum balance on any
Day during a month, a service charge of Rs. p.m. is to be recovered?
a) 20 b) 30 c) 40 d) As per SB rule
52. The threshold balance chosen by a customer in Savings Plus account has to be
minimum Rs. or More
a) 5,000 b) 15,000 c) 35,000 d) 25,000
74
53. The MODs under Savings plus Account will be created automatically by auto sweep for a
Minimum amount of Rs. . In multiples of Rs. .
a) 5,000/-, 1,000/- b) 10,000/-, 5,000/-
c) As decided by cust, 1,000/- d) 15,000/-, 1,000/-
54. The period for which MODs are created under Savings Plus account are months
a) 12, 24, 36 b) 12 to 60 c) 12, 36, 60 d) 12 to 120
55. To open accounts under Senior Citizen Deposit Scheme, the age of the applicant should
be_______Years.
a) Above 60 b) Above 70 c) 60 or above d) 65 or above
56. The authorized branches for opening accounts under Senior Citizen Deposit Scheme are:
a) All Urban/Semi-urban branches b) All FCBs
c) All branches with P division d) All branches
57. The minimum amount of deposit that can be accepted under Senior Citizen Deposit Scheme
is Rs.
a) 5,000 b) 1,000 c) 10,000 d) 25,000
58. The minimum period for which deposits can be accepted under Senior Citizen D e p o s i t
Scheme is
a) 5 years b) 1 year c) 6 months d) 3 years
59. The name of the deposit scheme in which deposits in the sole name of depositor cannot
be accepted without nomination is
a) MOD b) Savings Plus
c) Senior Citizen Deposit Scheme d) None of the above
60. How many numbers of debits are allowed free per half year in a SB account
a) 30 b) 50 b) 100 d) No limit
61. What is the eligibility criteria for opening of an account under Pehli Udan scheme?
a) Any minor above the age of 10 years
b) Any minor above the age of 12 years
c) Any minor above the age of 10 years, who can sign uniformly
d) Any minor above the age of 12 years,who can sign uniformly
62. 'Small Account' means a savings account in a banking company where -
a) The aggregate of all credits in a financial year does not exceed rupees one lakh;
b) The aggregate of all withdrawals and transfers in a month does not exceed rupees
ten thousand;
c) The balance at any point of time does not exceed rupees fifty thousand.
d) All of the above
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63. Minimum Balance to be maintained by an Individual in the Current Account at rural
center is
a) Rs. 5000/- b) Rs. 2500/- c) Rs. 3000/- d) Rs. 1000
64. Under Senior Citizens Deposit Scheme, for recurring deposits, maturity value should be
minimum of Rs. .
a) Rs.10000 b) Rs. 1500 c) Rs. 20000 d) Rs.50000
65. The eligibility criteria for covering the employees of a Corporate or a Institutions under our
"Corporate Salary Package" is minimum employees.
a) 10 b) 20 c) 25 d) 50
66. Savings Bank Account as well as Current Account should be treated as 'Inoperative' when
a) There are no debit as well as credit transactions induced at the instance of customers
in the account for over a period of one year
b) There are no debit as well as credit transactions induced at the instance of Customers
in the account for over a period of two years
c) There are no debit as well as credit transactions induced at the instance of customers
in the account for over a period of one and half years
d) There are no debit as well as credit transactions induced at the instance of customers
in the account for over a period of six months
67. As per RBI guidelines an annual review must be conducted to the in SB inoperative
accounts where the balance is more than Rs. .
a) Rs.1,000/- b) Rs.5,000/- c) Rs.10,000/- d) Rs.25,000/-
68. How many variants of SME Power Current accounts are being offered at present ?
a) 2 b) 3 c) 4 d) 5
69. Which of the following SME Power Current account has since been discontinued ?
a) SME Power Premium b) SME Power Base
c) SME Power Pack d) SME Power Gain
70. Penalty for non-maintenance of QAB in case of SME Power Gain account is
Rs. per Quarter
a) 3000/- b) 2000/- c) 6000/- d) 5000/-
71. Penalty for non-maintenance of QAB in case of SME Power Pack account is
Rs. per Quarter
a) 5000/- b) 2000/- c) 3000/- d) 10000/-
72. Penalty for non-maintenance of QAB in case of SME Power Base account is
Rs. per Quarter
a) 3000/- b) 2000/- c) 6000/- d) 5000/-
73. Penalty for closure of the SME Power Pack account before one month is Rs.
a) Rs. 1000 b) Rs. 5000 c) Rs. 100 d) Rs. 500
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74. The Corporate Salary Package has variants:
a) 2 b) 3 c) 4 d) 5
75. SBI Vishesh status is being provided for holders of .
a) Platinum Account b) Gold Account
c) Diamond Account d) Both ([A] & ([C]
76. Overdraft facility limited to 2 month's Net Salary can be provided under corporate
Salary Package Account to .
a) Platinum Account
b) Silver Account, Gold Account
c) Silver Account, Gold Account & Diamond Account
d) All the four variants
77. The Defence Salary Package has variants:
a) 2 b) 3 c) 4 d) 5
78. If the mandate in a joint account is E or S and nomination has been done in the account,
the right of the nominee arises only after
a) Death of all the account holders b) Any one of the account holder
c) Death of the first holder d) None of these
79. What is the monthly limit on the no of debit transanctions(which can be done at branch
premises free of cost ) permitted to the customer maintaining monthly average balance of
Rs.1000/- to Rs. 25,000/- per month?
a) 5 b) 10 c) 4 d) 3
80. What is the monthly limit on the no of debit transactions(which can be done through internet/
mobile banking free of cost ) permitted to the customer maintaining monthly average
balance of Rs.1000/- to Rs. 25,000/- per month?
a) 10 b) 20 c) 30 d) 40
81. Cash withdrawal from SBI Small Account can be done through
a) Withdrawal Form/ Cheque/ATM b) ATM or Cheque
c) ATM/INB/MBS/Cheque d) None of these
82. Which of the following debit entries will be counted for the purpose arriving at the
maximum no of entries in a half year in a SB account ?
a) Withdrawal through State Bank ATMs
b) Withdrawals through ATMs other than State Bank ATMs
c) Debit entries on account of service charges
d) Transactions through internet banking
83. What is the no. of debit transactions offered free if the Monthly average balance in a SB
account is between Rs.25,000/- to Rs. 50,000/- ?
a) 5 b) 10
c) 15 d) No such stipulation
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84. What is the per transaction fees to be collected per financial transanction done by the
SB customer at branch if the Monthly average balance is between Rs. 25,000/- to
Rs. 50000/- ?
a) Rs. 10/- b) Rs.15/- c) Rs. 20/- d) Rs. 25/-
85. In case of issuance of Multi City Cheques (MC[C] to all P Segment Savings Bank customers,
the default limit is raised to Rs. Lakhs
a) 3 b) 4 c) 10 d) 5
86. No interest would be paid on deposits that remained with the Bank for less than days.
a) 14 b) 7 c) 30 d) 90
87. No penalty to be levied for premature payment of time-deposits with tenor up to days.
a) 15 b) 180 c) 30 d) 90
88. Which deposit scheme has been revived recently after discontinuance since Jan 1982 ?
a) Kanakdhara b) Annuity deposit
c) Cash certificate d) Tiny deposit
89. TDS is now applicable on interest paid for which of the Term deposits ?
a) Term Deposit b) Special Term Deposit
c) Recurring Deposit d) Flexi Deposit
90. SBI Flexi deposit is a type of deposit.
a) SB b) RD c) CA d) STDR
91. In case of SBI Flexi deposit period of deposit will be minimum years and
maximum Years.
a) 3, 5 b) 4, 8 c) 7, 10 d) 5, 7
92. Maximum Deposit Amount in a SBI Flexi deposit in a financial year will be Rs.
a) 60000 b) 50000 c) 40000 d) 80000
93. Under Annuity Deposit Account Minimum Amount of deposit should not be below .
a) Rs. 25,000/- b) Rs. 35,000/- c) Rs. 45,000/- d) Rs. 55,000/-
94. In case of Time Deposits, if maturity proceeds exceeds or more, the amount
Invariably will be credited to account or paid through Account payee cheque (Section 269
of IT Act)
a) Rs.10,000/- b) Rs.20,000/- c) Rs.30,000/- d) Rs.50,000/-
95. If the depositor has availed a loan against the annuity deposit, then the annuity a m o u n t
shall be credited to:
a) Running Deposit account as usual
b) Running Deposit account, but simultaneously installment will be recovered
c) The loan account of the depositor
d) In the Annuity Deposit account
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96. What is the maximum amount of overdraft permissible in Savings bank A/c?
a) Rs.5000 b) Rs. 2000 c) Rs. 1000 d) Rs. 3000
97. Overdraft created in a SB A/c should be adjusted within a period of .
a) One we b) Two weeks c) Three weeks d) One month
98. In accordance with the IBA guideline, what is the period beyond which banks should not
accept deposits?
99 . In case of delay in payment of installments of R.D. accounts, penalty is charged for every
Rs 100 per month at the rate of:
a) Rs. 1.00
b) Rs. 2.00
c) Rs.1.50 for RD up to 5 years & Rs 2 for RD of over 5 years
d) Rs.1.00 for RD up to 5 years & Rs 1.50 for RD of over 5 years
100. In case of Premature payment of RD account penalty should not exceed the
a) Rs.90/- b) Rs.120/-
c) Interest payable d) None of the above
101. Quarterly Average Balance required to be maintained in SME Power Pack account is
.
a) Rs.1.00 lac b) Rs. 4.00 lac c) Rs. 5.00 lac d) Rs.10.00 lac
102. Quarterly Average Balance required to be maintained in SME Power Base account is -
a) 30000/- b) 20000/- c) 25000/- d) 50000/-
103. Penalty for closure of account before 12 months in case of SME Power Pack is Rs.
a) 3000/- b) 2000/- c) 4000/- d) 5000/-
104. What is the limit of cash withdrawal by cheque from non -home branch in case of power
pack accounts
a) Max Rs. 1 lac per cheque only,by account holder
b) Max Rs. 2 lac per cheque only,by account holder
c) Max Rs. 1 lac per cheque only,by third party
d) Max Rs. 2 lac per cheque only,by third party
105. What is the limit of cash deposit at non -home branch in case of power pack accounts
a) Max. Rs. 2,00,000/- per day per account
b) Max. Rs. 1,00,000/- per day per account
c) Max.Rs.2, 00,000/-per day per account but Branch Manager of the non-home branch
is vested with the discretion to accept more cash
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106. What is the stipulation on initial deposit at the time of opening of new SB account?
a) Rs. 1000 and Rs.500 for urban and rural branches respectively
b) Rs. 500 and Rs.NIL for urban and rural branches respectively
c) Rs.500 for both urban and rural branches
d) SB Account can now be opened with Zero initial deposit
107. Which of the following instruction is correct regarding issuance of internet banking kit to
the customer ?
a) INB kit is a part of Welcome kit and there is no need to issue it separately, if the
account is opened through welcome kit
b) INB kit should be issued to the account after 1 day of account opening
c) Branches should issue the pre-printed Internet Banking Kit together with the Welcome Kit
at the time of opening the account, to all the customers availing the Internet Banking facility
108. Interest is being applied in savings Bank accounts on half yearly basis on th
day of June and December every year
a) 20th b) 25th
c) 30th d) Last of the month
109. The subscription amount under SBI Tax savings scheme 2006 has been enhanced from
Rs 100000/- to Rs.
a) 1,25,000 b) 1,50,000 c) 1,75,000 d) 2,00,000
110. Authorised Persons who are Indian Agents (tie up arrangement with western union and
Money Gram) under MTSS( Money transfer Service scheme) are now required to maintain
and preserve records for a period of at least years, as per Prevention of
Money Laundering (Amendment) Act, 2012.
***
ANSWERS TO P SEGMENT DEPOSIT
1. (b) 2. (a) 3. (d) 4. (a) 5. (b) 6. (c) 7. (a) 8. (a) 9. (b) 10. (d)
11. (c) 12. (b) 13. (c) 14. (d) 15. (c) 16. (a) 17. (a) 18. (c) 19. (d) 20. (d)
21. (a) 22. (c) 23. (b) 24. (d) 25. (b) 26. (b) 27. (b) 28. (b) 29. (a) 30. (d)
31. (c) 32. (d) 33. (b) 34. (c) 35. (a) 36. (e) 37. (b) 38. (b) 39. (c) 40. (c)
41. (b) 42. (b) 43. (a) 44 (c) 45. (c) 46. (d) 47. (d) 48. (d) 49. (c) 50. (c)
51. (d) 52. (c) 53. (c) 54. (b) 55. (c) 56. (d) 57. (c) 58. (b) 59. (c) 60. (a)
61. (c) 62. (d) 63. (b) 64. (a) 65. (c) 66. (b) 67. (b) 68. (b) 69. (a) 70. (c)
71. (d) 72. (a) 73. (a) 74. (c) 75. (a) 76. (d) 77. (c) 78. (a) 79. (c) 80. (d)
81. (a) 82. (b) 83. (b) 84. (c) 85. (c) 86. (b) 87. (b) 88. (b) 89. (c) 90. (b)
91. (d) 92. (b) 93. (a) 94. (b) 95. (d) 96. (c) 97. (d) 98. (b) 99. (c) 100. (c)
101.(c) 102. (b) 103. (d) 104. (a) 105. (c) 106. (d) 107. (c) 108. (b) 109. (b) 110. (b)
80
PER SEGMENT ADVANCES
1) Maximum permissible loan amount in SBI Yuva Home Loan is .

a) As per the EMI/NMI ratio
b) 1.2 times of the loan quantum as per the EMI/NMI ratio
c) 36 times the NMI
d) 60 times the NMI
2) Minimum net monthly income for SBI Yuva home loan borrowers is fixed at Rs. .
a) 25000 b) 50000 c) 30000 d) 75000
3) Maximum age limit has been kept fixed at years under SBI Yuva home loan.
a) 60 b) 35 c) 45 d) 70
4) Under the SBI Yuva Home loan scheme, loan can be repaid up to years
a) 15 b) 20 c) 30 d) 25
5) Home loan may be sanctioned for reimbursement of investment made by the borrower in
housing from own resources during the preceding months subject to certain conditions.
a) 6 b) 9 c) 12 d) 18
6) Under Loyalty Car Loan scheme loan may be sanctioned upto % of on-road price of the
vehicle.
a) 80 b) 85 c) 90 d) 100
7) Minimum age for home loan eligibility is years.
a) 21 b) 18 c) 20 d) No such limit
8) In home loan, EMI/NMI ratio has been fixed on the basis of net annual income of the
customer. In case of a customer, whose annual income is above Rs.500000/- and within
Rs.800000/-, the eligible EMI/NMI ratio has been kept at
a) 35% b) 45% c) 60% d) 65%
9) Loan to value ratio for construction linked disbursement under Home Loan for loan up to
Rs 20 lacs is .
a) 80% b) 90% c) 75% d) 60%
10) Loan to value ratio for construction linked disbursement under Home Loan for loan above
Rs.20 lacs and upto Rs. 75 lacs is .
a) 80% b) 90% c) 75% d) 60%
11) In Home loan, eligible EMI/NMI ratio for a loanee with net annual income of above Rs. 10
lacs is .
a) 30 b) 40 c) 55 d) 70
12) Under Home loan to businessman scheme, can Maxgain in the form of overdraft facility
be given ?
a) Yes b) No
c) Yes two guarantors are there d) Yes with the spouse
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13) Minimum amount of loan that can be sanctioned under NRI housing loan is
a) Rs. 2 lacs b) Rs. 1 lacs c) Rs.5 lac d) Rs. 3 lacs
14) For sanction of SBI Home Top Up loan minimum Net Annual Income of the existing standard
Housing Loan borrower will be .
a) 1.00 lac b) 2.00 lacs c) 3.00 lacs d) 5.00 lacs
15) Maximum amount of loan under SBI Home Top Up loan can be sanctioned is Rs.
a) 50 lacs b) 500 lacs c) 150 lacs d) 100 lacs
16) In principle approval given to prospective Home loan borrowers is valid up to
a) 3 months from the date of issue b) 30 days from the date of issue
c) 6 months from the date of issue d) 15 days from the date of issue
17) Maximum loan in SBI realty is Rs.
a) 2crore b) 4 crore c) 5 crore d) 10 crore
18) No. of Co-Borrowers in case of a regular Housing Loan is restricted to maximum including
spouse/children/parents/siblings.
a) 2 b) 3 c) 4 d) 5
19) EMI reset in case of Housing loans can be permitted if the interest rate reduction is of % or
more compared to the rate prevailing at the time of sanction of the loan
a) 2 b) 1 c) 0.5 d) Not permitted
20) EMI reset in case of Housing loans can be permitted in the event of downward revision in
interest rate if the original housing loan was Rs.
a) 3 lacs or more b) 5 lacs or more
c) 7.5 lacs or more d) 10 lacs or more
21) The periodicity of inspection of standard and NPA Housing loan a/cs ?
a) 3 years and Half yearly b) 2 years and Half yearly
c) 3 years and Quarterly d) 2 years and Quarterly
22) Under housing loans what is the maximum loan amount for repair & renovation?
a) 8 lakh b) 15 lakh c) 20 lakh d) 10lakh
23) Maximum permissible moratorium period for over 21 floors is months
a) 18 b) 24 c) 30 d) 36
24) Maximum processing fee in case of Housing Loan is Rs.
a) 10,000 b) 6,500
c) 15,000 d) No processing fee
25) Individual home loans can be availed at
a) Place of work b) Place of construction
c) a or b d) None
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26) Advance upto Rs. lacs in other centres and upto Rs. lacs in metropolis, granted for repair
of houses is treated as priority sector.
a) 1&2 b) 2&4 c) 2&5 d) None
27) Under Housing Loan Scheme, when the income of spouse/children/parents/sibling is
clubbed with the borrower for arriving maximum loan amount subject to they should
stand as :
a) Co-borrower if the property held in joint name.
b) Guarantor if the property held in the name of borrower only.
c) Both a & b
d) There is no such requirement
28) The maximum permissible loan under H.L Scheme for furnishing and consumer durable
is .
a) 10 % of the project cost or Rs. 20 lacs whichever is less.
b) 20% of the project cost or Rs. 30 lacs whichever is less.
c) 10 % of the project cost or Rs. 25 lacs whichever is less.
d) 10 % of the project cost or Rs. 40 lacs whichever is less.
29) Under Loyalty Car Loan scheme extension of equitable mortgage is not required for car
loans upto Rs. Lacs.
a) 3 b) 4 c) 10 d) 6
30) For securing Education loan which of the following documents is mandatory for both the
student and parent/guardian
a) Ration card b) PAN card c) Passport d) Voter ID
31) Repayment period in case of housing loan should not exceed years including moratorium
period.
a) 25 years b) 15 years c) 20 years d) 30years
32) For a prospective Home loan borrower the EMI/NMI ratio of the borrower with Net Annual
Income of above Rs. 3 lacs to Rs. 5 lacs is
a) 40 % b) 50 % c) 55 % d) 65 %
33) The revised EMI/NMI ratio in Home loan of above Rs.8 lacs and upto Rs.10 lacs is
a) 40% b) 50% c) 55% d) 60%
34) To be eligible for housing loan, the applicants should be over years of age.
a) 21 b) 30 c) 25 d) 18
35) The sanction of home loan will be valid for months from the date of sanction
a) 3 b) 6 c) 9 d) 12
36) What is the LTV Ratio stipulated in case of housing loans above Rs. 30 lacs and upto
Rs. 75 lacs sanctioned for purchase of new/old house or flat ?
a) 80% b) 75% c) 85% d) 65%
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37) Both Existing / Prospective customers having minimum balance of Rs. in their SB/CA
may be considered for SBI MAXGAIN home loan.
a) 50000 b) 25000 c) 5000 d) 10000
38) The maximum loan amount for repairs / renovation in NRI home loan should be normally
limited to Rs. lacs.
a) 20 b) 10 c) 5 d) 7
39) Housing loan scheme for NRI-what is the minimum age requirement ?
40) The Bank is providing Accidental Death Cover free of cost up to an amount of Rs.50 lacs
to borrowers
a) Home Loan b) Car Loan
c) Personal Loan d) a & b above
41) One of the eligibility criteria for NRIs to obtain housing loans is that persons should have
permanent jobs for (period) in reputed companies/ organisations/govt.departments.
a) More than 6 months b) 1 year
c) 2 years d) 3 years
42) The minimum loan amount of housing loan under HL scheme for NRIs/PIOs is
a) Rs.1 lacs b) Rs.2 lacs c) Rs.3 lacs d) Rs.5 lacs
43) SBI Realty loan is repayable in a maximum of months commencing from the month following
the month of disbursement of the loan.
a) 180 b) 120 c) 84 d) 96
44) Ceiling on SBI MaxGain Home Loan is enhanced from Rs.0.5 Cr to
a) 1.0 b) No max. limit c) 1.5 d) 2.0
45) To avail the benefit of SBI Maxgain Housing loan scheme the minimum loan amount
should be?
a) 10,00,0000 b) 4,00,000 c) 20,00,000 d) 6,00,000
46) Cheque book/ ATM cum Debit Card and Internet Banking facility shall be provided to the
SBI Maxgain housing loan borrower .
a) At the time of opening the A/C b) On completion of the house
c) After full disbursement of loan d) 06 months after the sanction of loan
47) The maximum loan amount under SBI REALITY is limited to Rs. without administrative
clearance.
a) 7.5 lac b) 50 lacs c) 12 lacs d) 15 lacs
48) What is the maximum time period stipulated for construction of house after availment of
loan under SBI REALITY ?
84
49) No prior administrative clearance is required for granting loans for purchase of old houses
which are
(a) up to 5 years old (b) up to 10 years old
(c) up to 3 years old (d) up to 15 years old
50) Direct housing finance of upto Rs. are treated as priority sector lending in rural areas :
(a) Rs.15 lacs (b) Rs.10 lacs (c) Rs.20 lacs (d) Rs.25 lacs
51) The maximum loan amount under Gram Niwas Scheme for construction/acquiring of new
houses in rural areas is
(a) Rs.50,000/- (b) Rs.1 lac c) Rs. 2 lacs d) Rs. 5 lacs
52) Under the Gram Niwas Scheme, the maximum loan amount for improvement (repairs) or
adding to existing dwelling units in rural areas is :
a) Rs.1,00,000/- b) Rs.50,000/- c) Rs.1,50,000/- d) Rs. 2 lacs
53) Under the Gram-Niwas Scheme, the minimum margin requirement is
a) 15% b) 10% c) 25% d) 35%
54) Under the Gram Niwas Scheme, the maximum period of repayment is
55) Age criteria under Gram Niwas Scheme is .
a) 18 to 60 years b) 21 to 60 years
c) 21 to 65 years d) 18 to 50 years
56) For availing car loan under Loyalty Car Loan schme minimum Net Annual Income of the
borrower will be Rs. Lacs.
a) 1 b) 3 c) 4 d) 2
57) For being eligible under Sahayog Niwas Scheme, SHGs should be in existence, with
good track record of payment, for more than
a) 06 months b) 01 year c) 02 year d) 03 year
58) The maximum amount of loan that can be sanctioned under Sahayog Niwas Scheme, is
(including the loan outstanding in the limits already sanctioned to SHGs)
a) 4 times the saving of the corpus b) 5 times the saving of the corpus
c) 8 times the saving of the corpus d) 10 times the saving of the corpus
59) Sahyog Niwas Scheme is operational in
a) In rural and semi urban areas where SHGs are operating
b) In urban areas where SHGs are operating
c) Both (a) &b
60) The margin on loan under Tribal plus for repair/ renovation and addition is
a) 20% b) 15% c) 25% d) 30%
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61) The maximum loan that can be availed under Tribal Plus scheme is
a) Rs.1 lac b) Rs. 2 lacs c) Rs. 5 lacs d) 10 lacs
62) To be eligible for a loan under SBI-Tribal Plus Home loans, the age of the applicant should
not be more than years.
63) Under Tribal Plus , the total repayment period should not exceed Years.
a) 15 b) 10 c) 18 d) 20
64) What is the minimum amount of loan under SBI-Home Top Up loan ?
a) Rs. 200000/- b) Rs.15,000/- c) Rs. 20000/- d) Rs. 10000/-
65) Maximum loan that can be availed under Loan SBI-Home Top Up loan
a) Rs.10 lacs b) Rs. 20 lacs c) Rs. 5 lacs d) Rs. 500 lacs
66) Cost of high value cars is between Rs. to Rs. .
a) 20 lacs, 1 cr b) 10 lacs, 1 cr c) 5 lacs, 1 cr d) 50 lacs, 1 cr
67) It has been decided to raise the upper cap under loans against the security of Gold
Ornaments to Rs. lacs.
a) 2.5 b) 2 c) 5 d) 20
68) The minimum amount of gold loan that can be sanctioned in rural and semi-urban areas is
Rs. ?
a) 3000 b) 4000 c) 20000 d) 6000
69) The minimum amount of Gold loan that can be sanctioned in centres other than rural and
semi urban areas is Rs. ?
a) 5000 b) 20000 c) 7500 d) 15000
70) Maximum repayment stipulated in case of loans sanctioned against security of gold
ornaments is months?
a) 60 b) 48 c) 24 d) 30
71) Minimum age for gold loan eligibility in personal segment is
a) 18 b) 25 c) 21 d) N.A
72) The minimum/maximum amount of gold loan sanctioned to a staff member is
a) Not applicable b) Rs.10,000 & Rs.3,00 lacs
c) Rs.5,000 & Rs.5 lacs d) None of the above
73) Cost of super luxury cars is above Rs. .
a) 1 cr b) 50 lacs c) 75 lacs d) 2 cr
74) What is the minimum margin stipulated under SBI Two-Wheeler loan scheme?
a) 5% b) 20% c) 15% d) 10%
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75) What is the minimum NMI stipulated for purchase of mopeds and battery operated two
wheelers?
a) Rs.2,500 b) Rs.3,500 c) Rs.4,500 d) Rs.5,000
76) The two wheeler bulk finance under which circle can offer concessional terms and conditions
for bulk purchase of two wheelers. Here bulk means.
a) Minimum 25 vehiclesfinanced within 3 months
b) Minimum 50 vehicles financed within 6 months
c) Minimum 100 vehicle financed within 120 days
77) Under Nano Youth Car Loan scheme age of the youngster should be between years.
a) 18-26 b) 18-27 c) 18-28 d) 18-30
78) Maximum amount of loan that can be granted under SBI Loan to Pensioners ?
a) Rs25,000/- b) Rs 14,00,000/- c) Rs 75,000/- d) Rs. 80,000/-
79) Quantum of loan under SBI Loan to Pensioners is ________times monthly pension of the
applicant.
a) 3 b) 6 c) 18 d) 24
80) What is the repayment period stipulated for SBI Loan to Pensioners if the age of the
pensioner at the time of sanction of loan is 72-74 years?
a) 12 EMI b) 24 EMI c) 48 EMI d) 36 EMI
81) JaiJawan Pension Loan is granted as facility
a) Demand Loan only b) Term Loan only c) Overdraft d) D.L. Or T.L
82) What it is the maximum loan amount that can be given to family pensioners under SBI
Loan to Pensioner scheme is
a) Rs. 75,000/- b) Rs. 500,000/-
c) Rs. 40,000/- d) Rs. 25,000/-
83) The maximum age limit to avail family pensioner loan under SBI Loan to Pensioner scheme
is years
a) 70 b) 76 c) 60 d) 55
84) For availing car loan under Nano Youth Car Loan scheme minimum NAI of the borrower
should be Rs. lakhs per annum.
a) 1 b) 3 c) 2 d) 4
85) The eligible loan amount under Jai Jawan Pension Loan Scheme is
a) 36 times net monthly pension subject to maximum Rs 1.5 lacs
b) 48 times net monthly pension subject to maximum Rs 2.0 lacs
c) 60 times net monthly pension subject to maximum Rs 3.0 lacs
d) 24times net monthly pension subject to maximum Rs 1.0 lacs
87
86) To be eligible for SBI Saral, Professional and Self-employed persons should have a net
annual income of Rs.
a) 50,000 b) 60,000 c) 75,000 d) 100,000
87) Maximum amount of loan that can be granted under SBI Saral Loan scheme in metro
centers is
a) Rs 2, 50,000/- b) Rs 2, 00,000/- c) Rs 10, 00,000/- d) Rs 5 lakhs
88) Minimum service stipulated for Employees under SBI Saral Loan?
a) 2 year b) 3 years c) 1 year d) 5 years
89) What is the minimum amount Loan can be availed under Saral Scheme at R/SU area?
a) 50000/- b) 10000/- c) 60000/- d) 40000/-
90) Maximum loan amount for purchase of super luxury imported cars is 85% of the price of
the vehicle.
a) ex-show room b) on road price
91) The minimum amount of loan under the SBI Saral at Metro/Urban centre is
a) Rs.20, 000/- b) Rs.25, 000/- c) Rs.22, 000/- d) Rs.24, 000/-
92) SBI Saral is repayable in months
a) 12 to 36 b) 6 to 48 c) 24 to 48 d) 60 to 72
93) For salaried individuals, minimum & maximum repayment period under SBI Saral is fixed
at months.
a) 12 to 72 b) 36 to 48 c) 48 to 72 d) 6 to 48
94) The eligible persons for availing a loan under SBI Saral Loan Scheme are
a) Employees of Govt. / PSU
b) Self Employed Professionals
c) Pensioners of Govt./PSU
d) All P segment customers other than those under express credit
95) Auto loan above Rs.5 lac, CIRs of CICs required.
a) 1 b) 2 c) 3 d) 4
96) Maximum repayment period for certified pre-owned cars is yrs.
a) 5 b) 7 c) 6 d) 8
97) Under SBI Student Loan, if full interest is paid during the moratorium period % concession
is allowed.
a) 1 b) 0.5 c) 2 d) 1.5
98) Under SBI Student Loan Scheme, the maximum loan for school/college education in India
can be given up to Rs.
a) 5 lacs b) 10 lacs c) 20 lacs d) 7.5 lacs
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99) Under SBI Student Loan Scheme, the maximum amount of loan for studies abroad is Rs.
100) Under SBI Student Loan Scheme, for loans upto Rs 7.5 lacs, margin stipulated is %
a) 5% b) Nill c) 10% d) 15%
101) Under SBI Student Loan Scheme for loans above Rs 7.5 lacs granted for studies in India,
margin stipulated is .
a) 15% b) 5% c) 10% d) 25%
102) Under SBI Student Loan Scheme for loans above Rs 7.5 lacs granted for studies abroad
margin stipulated is .
a) 5% b) 20% c) 10% d) 15%
103) Under the SBI Student Loan Scheme, the security taken for loans upto Rs 7.5 lacs is
a) Nil b) 50% c) 25% d) 100%
104) Minimum income for certified pre-owned cars is lacs.
a) 2 b) 3 c) 4 d) 1
105) Minimum loan amount for certified pre-owned car loan is lacs.
a) 1 b) 2 c) 3 d) 4
106) SBI Student Loan upto 7.5 lakh for studies in India is repayable Within years after the
repayment holiday
a) 3-5 years b) 15 years c) 6-7 years d) 8-10 years
107) What is the maximum amount of loan under SBI Scholar
a) 20 lakh b) 15 lakh c) 30 lakh d) 12 lakh
108) An interest rate concession of is given under SBI Scholar loan to girl students
a) 0.25% b) 0.50% c) 1.00% d) No concession
109) As per RBI guidelines Education Loans up to Rs. lacs for studies in India and up to Rs.
lacs for studies abroad are reckoned under priotity sector.
a) 7.5 & 15 b) 10 & 15 c) 10 & 20 d) No ceiling
110) Maximum loan amount for certified pre-owned car loan is lacs.
a) 5 b) 10 c) 15 d) 20
111) Loan for Pilot Training Courses are covered in .
a) SBI Career Loan Scheme b) SBI Student Loan Scheme
c) SBI Scholar Loan Scheme d) Both a & b
112) Under Interest Subsidy for Education Loans for economically Weaker Sections, interest
claims are required to be submitted at intervals.
a) Monthly b) Quarterly c) Half yearly d) Yearly
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113) The scoring model will not be used for decision making in case of Loan but will be applied
only for determining regulatory capital requirements under Basel II.
a) Education b) Housing c) Car d) Personal
114) The Govt. has now formulated a scheme for providing interest on Education Loans during
moratorium for technical and professional courses for studies in India under the IBA Model
Education Loan Scheme for students from Economically Weaker Sections (EWS) with
annual gross parental/family income up to Rs._________ lacs per annum from the academic
year 2009-10.
a) 1.50 b) 2.50 c) 3.50 d) 4.50
115) Claim of Interest subsidy on education loan for economically weaker section proposed by
ministry of HRD, Govt. Of India shall be routed through_________ (Nodal bank).
a) State Bank of India b) ICICI Bank
c) Canara Bank d) Oriental Bank of Commerce
116) The minimum loan amount under Festival Loan scheme is Rs.
a) 3000 b) 4000 c) 5000 d) 6000
117) The loans availed under Festival Loan Scheme has to be repaid within months.
a) 6 b) 12 c) 24 d) 36
118) The minimum NMI required to be eligible for Festival Loan is Rs.
a) 3,000 b) 4000 c) 5000 d) 6000
119) The maximum loan amount under Festival Loan scheme is Rs.
a) 30000 b) 40000 c) 50000 d) 60000
120) What is minimum NMI under Xpress Credit
a) 6000/- b) 2500/- c) 2000/- d) 7500/-
121) What is the minimum loan amount under Xpress credit
a) 24000/- b) 15000/- c) 10000/- d) 5000/-
122) What is the maximum loan amount under Xpress credit
a) 24 months NMI b) 12 months NMI
c) 18 months NMI d) 15 months NMI
123) Eligible Loan amount under Express-Credit Scheme has been increased from 18Months
NMI, to Months NMI and maximum Loan from Rs. 10 lacs to Rs. lacs.
a) 12, 7.5 b) 24, 12.0 c) 36, 15.0 d) 24, 15
124) Margin stipulated for advance against RBI relief Bonds is .
a) 30% b) 50% c) 40% d) 35%
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125) Prior administrative clearance from which department should be obtained before
sanctioning loans against Demat shares and debentures?
a) Product Development and Marketing Department at Corporate Centre
b) LHO
c) Controlling Office
d) RBI
126) What is the maximum amount of loan that can be granted to public against pledge
of NSC?
a) 75% of face value b) 65%of face value
c) 65% of face value+accured interest d) 60% of face value+accured interest
127) What is the maximum amount of loan per IPO, under loan for subscription to IPO ?
a) 10000/- b) 20000/- c) 25000/- d) 100,000/-
128). Loans against Demat shares and debentures cannot be sanctioned for :
a) speculative purposes
b) inter-corporate investment
c) acquiring controlling interest in companies
d) all of these
129) Maximum Loan sanctioned against Demat Shares and debentures is Rs.
130) Maximum repayment period stipulated for loans sanctioned against Demat Shares and
debentures is months
a) 24 b) 36 c) 30 d) 60
131) What is the maximum loan amount against LIC Policies ?
a) 95% of surrender value b) 90% of surrender Value
c) 75% of surrender value d) 65% of surrender value
132) LIC policies accepted as security are to be entered in the .
a) Safe-custody register b) Miscellaneous security register
c) LIC policies register d) Joint custody register
133) Equity plus is a scheme meant for .
a) Loan to employees of reputed PSUs to subscribe to shares of own companies under
Employees Quota
b) Loans for purchase of shares of Blue- chip companies
c) Loans for purchase of rights issue
d) Loans to subscribe Bonus Share
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134) The Maximum loan against mortgage of immoveable property is restricted to
a) 24 NMI/ 2 times NAI subject to a maximum of Rs. 50 lacs
b) 24 NMI/ 2times NAI SUBJECT TO A MAXIMUM OF Rs. 1 crore.
c) 75 % of the market value of property, with a ceiling of Rs.50 lacs.
d) 60% of the market value of property, with a ceiling of Rs.2 crore
135) What is the maximum repayment period for loan against mortgage of immoveable property
where Check-off is available?
a) 120 Month b) 60 Month c) 84 Month d) 48 Month
136) Minimum and maximum loan against mortgage of immovable property is Rs. thousand
and Rs. lacs
a) 10 , 75 b) 50, 50 c) 100, 60 d) 25,200
137) The maximum age of the applicant under mortgage of immovable property loan scheme
should not exceed years
a) 50 b) 60 c) 70 d) 80
138) Minimum Net Monthly Income of the applicant under mortgage of immovable property loan
scheme should be Rs.
a) 5,000 b) 7,000 c) 10,000 d) 25,000
139) For availing super bike loan net annual income should be Rs. lacs.
a) 6 b) 5 c) 4 d) 3
140) Minimum loan amount for super bike loan is Rs. lacs.
a) 3 b) 2 c) 1 d) 4
141) SBI Reverse Mortgage Loan is given to
a) Senior Citizens of India
b) Should have self acquired and self occupied house in India
c) For the benefits of the senior citizens who have inadequate income to support
themselves
d) All the above
142) Maximum loan under SBI Reverse Mortgage Loan is % of the value of property mortgaged.
a) 70 b) 75 c) 80 d) 90
143) In case the age of the younger one of the borrowers is between 58 to 68 years,the maximum
Tenor of the loan under Reverse Mortgage Loan is years.
a) 15 b) 10 c) 5 d) 20
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144) What is the REPAYMENT/Settlement of Reverse Mortgage Loan?
a) When the last surviving borrower dies.
b) When the last surviving borrower opts to sell the home or permanently moves outof
the home
c) Settlement with accumulated interest by sale proceeds of residential property or
prepayment by borrower and his next of kin.
d) Any of the above.
145) What is the periodicity of valuation/Revaluation of property under Reverse Mortgage Loan?
a) 03 years b) Once in 2 years
c) Every year d) 05 years after initial valuation
146) Margin for super bike loan is 15% of _________ of the vehicle.
a) ex-show room price b) on road price
147) Minimum amount of loan sanctioned under Rent Plus Scheme is Rs.
a) 0.50 lac b) 1 lac c) 3 lac d) 5 lacs
148) Maximum amount of loan sanctioned under Rent Plus Scheme at metro centres is
________.
a) Rs. 7.50 crore b) Rs. 5.5 crores c) Rs. 5 crores d) Rs. 10 lacs
149) Maximum amount of loan sanctioned under Rent Plus Scheme at non-metro centres is
_______ .
a) Rs. 1 cr b) Rs. 50 lacs c) Rs. 2 crs d) Rs. 5 crs
150) Maximum repayment period for loans sanctioned under Rent Plus Scheme is
a) 3 years
b) 4 years
c) 5 years
d) 10 years or the residual lease period whichever is lower.
151) Margin stipulated for loans sanctioned under Rent Plus Scheme is %
a) 20 b) 25 c) 30 d) 50
152) Maximum repayment period for super bike loan is ______ 5 years.
a) 3 b) 5 c) 7 d) 6
153) What is the minimum margin prescribed under loan for Earnest money for allotment of
plot/ house/ flat ?
a) 15% b) 20% c) 10% d) nil
154) Two months net salary can be given in advance to salary package A/c holders and will be
recovered in ______ months
a) 3 b) 4 c) 6 d) 7
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155) Which of the following category of account holders of Corporates, Institutions, Defence,
and Para Military etc under our various salary packages has been recently included for
providing Free Accidental Insurance Cover?
a) Gold b) Diamond c) Platinum d) Silver
156) What is the amount of Personal Accidental Insurance Cover for CSP, Railway Salary
Package (RSP) and State Government Salary Package (SGSP) account holders under
Silver Variant?
157) What is the amount of Personal Accidental Insurance Cover for all Platinum Account Holders
with International Platinum Debit Cards?
158) Effective 11.02.2011, if a customer is not happy with our services and wishes to close (not
transfer) new account within ____days, no service charges need to be recovered from
such customers. (This is as per our banks accepting codes of BCSBI)
a) 07 b) 10 c) 14 d) 30
159) In case of Scholar loan, maximum loan amount can be availed for study in List A
categoryinstitution is Rs. _________.
a) 15 lacs b) 10 lacs c) 7.5 lacs d) 30 lacs
160) In case of Scholar loan, maximum loan amount can be availed for study in List B
161) Minimum amount of loan can be availed under SBI Home Top Up loan is Rs. ________.
a) 25,000 b) 1,00,000 c) 50,000 d) 2,00,000
162) Moratorium period is the period, starting from the date of _____ till specified date, during
which repayment of principal and / or interest may not be stipulated.
a) First disbursement b) Sanction
c) last disbursement d) None of these.
163) In case of Scholar loan, maximum loan amount can be availed for study in List C
164) Who can be empanelled as ALCs (Auto Loan Counselors) for sourcing car loan
applications?
a) The retired employees of SBI only
b) Individuals with certain qualifications from among SBI customers only
c) Both a & b
d) None of these
94
165) In case of Scholar loan, maximum loan amount can be availed without collateral security
for study in List A category institution is Rs. _________.
for study in List B category institution is Rs. _________.
a) 7.5 lacs b) 10 lacs c) 20 lacs d) 30 lacs
for study in List c category institution is Rs. _________.
a) 15 lacs b) 7.5 lacs c) 20 lacs d) 30 lacs
168) Maximum tenor stipulated by our Bank due to increase in interest rates under the Home
loan Scheme is _______.
169) The interest rate on loan against term (Retail) deposits in our Bank is ______ above the
interest paid on (S)TDRs.
a) 1.50% b) 1.00% c) 0.50% d) 2.00%
170) The loan amount under the new two wheeler scheme for the confirmed clerical staff members
with service of less than 3 years stipulated is ____.
a) 6 times Net Monthly Income b) Rs. 60,000/-
c) a or b which ever is less d) unlimited
171) Collateral property valuation frequency in Rent Plus is
a) 5 b) 1 c) 3 d) 2
172) Jai jawan Pension loan is for exserviceman. But the age of the pensioner will not be more
than years.
a) 45 b) 70 c) 50 d) 60
173) Under education loan, the tuition fee for first semester may be considered in genuine
cases, provided the reimbursement is claimed within _______of the payment.
174) Maximum loan amount for SBI Skill Loan scheme is Rs. ______ lacs.
a) 1 b) 1.5 c) 2 d) 3
175) Maximum amount of Loan can be sanctioned for purchase of used cars is Rs. lacs.
a) 15 b) 5 c) 10 d) 20
176) Maximum periodicity allowed for repayment of gold loans (DL)in Pseg is .
a) 36 Months b) 30 Months c) 24 Months d) 48 Months
177) The maximum amount of loan against gold ornaments that can be sanctioned under personal
segment is ________.
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178) Campaign Mission Cyber Power IV is launched for __________.
a) booking salary accounts of employees of IT & ITES
b) opening of more number of Cyber Power Jyothi deposit accounts
c) sanction of loans for purchase of HCL Computers
d) booking of personal loan to IT professionals
179) The charges for remitting the EMI amount of Home Loan in a branch other than the home
branch are _____.
a) Rs. 50/- b) nil c) Rs. 25/- d) Rs. 30/-
180) In case of auto loans, interest rates on overdraft accounts are ______.
a) same as that of term loan b) 0.50% less than the term loan
c) 0.50% above the term loan d) 1.00% above the term loan
181) Multiple Demand Loans (DL) against the same TDR/STDR are permitted so long as
the______ against the TDR/STDR.
a) customer has repaid earlier loans
b) sum of all the DLs within 50% of the permissible limit
c) sum of all the DLs within the overall permissible limit
d) 100% of value of securities
182) In case of multiple Demand Loans against the same TDR/STDR, the AGM/RM can permit
a _____ loan under special cases.
a) fifth b) fourth c) eighth d) sixth
183) Recommended margin in value of land & bldg as collateral in education loan is
a) 10 b) 20 c) 15 d) 30
184) Takeover of car loans will be considered selectively where:
a) the vehicle is not more than 2 years old
b) it is a single ownership vehicle and no insurance claim has been availed
c) the account of the borrower with the other bank is a Standard Asset i.e.all repayments
have been made as per terms of sanction of the original financier.
d) all of the above
185) process is made mandatory for processing of personal loans.
a) CIS b) LMS c) LOS d) NONE
186) Maximum repayment period for Nano Youth Car Loan scheme is ____ months.
a) 48 b) 60 c) 72 d) 84
187) In case of tie-ups with reputed PSUs/corporate or institutions or owing to strategic reasons
the sanctioning authority will have the discretion to grant a higher loan subject to EMI/NMI
ratio not exceeding for Net Annual Income upto Rs. 5 lac.
a) 50% b) 60% c) 70% d) 65%.
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188) Maximum repayment period for SBI Skill Loan scheme is ______ yrs.
a) 3 b) 5 c) 7 d) 9
189) Minimum loan amount under online loan against shares is Rs. _______.
a) 50000 b) 100000 c) 200000 d) 300000
190) Minimum loan amount under SBI personal liquid gold loan is Rs. ____ lac.
a) 1 b) 2 c) 3 d) 4
191) Maximum repayment period under SBI personal liquid gold loan is ____ months.
a) 30 b) 36 c) 12 d) 24
192) What is the maximum number of applicants in SBI Car Loan Scheme for New Vehicle?
a) 3 b) 2 c) 4 d) 5
193) The mode of disbursement of loan proceeds under SBI Car Loan Scheme for New
Vehicle is
a) By Bankers Cheque only
b) By Bankers Cheque/DD only
c) By CBS fund transfer if dealers a/c in SBI or /RTGS/NEFT to dealers bank
account(other than SBI) only
d) By Bankers Cheque/DD/RTGS/NEFT only
194) Pre-sanction survey and KYC verification in respect of a new applicant under SBI Car
Loan Scheme or New Vehicle is done by
a) Pre sanction by branch/MPST, and KYC by RACPC, separately
b) Both Pre sanction and KYC by two different officers at different times
c) Any one official from RACPC/MPST/branch during one visit
d) Both by different officers from RACPC/MPST/branch during one visit
195) What is the periodicity of inspection in standard asset after initial inspection under SBI
Car Loan Scheme for New Vehicle?
a) Annual b) Half-yearly c) Once in 3 years d) Waived
196) What is the periodicity of inspection NPA accounts after default of 2 EMIs under SBI Car
Loan Scheme for New Vehicle?
a) Annual b) Half-yearly c) Once in 3 years d) Waived
197) Turn Around Time (TAT) at RACPC under SBI Car Loan Scheme for New Vehicle is
a) 5 working days b) 2 working days
c) 3 working days d) 6 working days
198) The maximum Tenor of the Home Loans eligible for cover under CRGFTLIHis ___ yrs.
a) 25 b) 30 c) 15 d) 20
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199) What is the mark below which a loan is declined in SBI Car Loan scoring model?
a) 45 b) 46 c) 76 d) 50
200) For existing customer, Pre-sanction survey and KYC for Car Loan under SBI Car Loan
Scheme for New Vehicle can be waived if the address of the customer has not changed
and he is a;
a) Home/Personal Loan customer with minimum one years satisfactory track record.
b) A car loan customer with a satisfactory track record, who wants to avail another car loan
c) Customer having satisfactory deposit account with average balance of Rs. 50,000/-
& above and banking with us for at least one year.
d) Under Corporate Tie-ups where check-off is available
e) All of the above
201) Maximum loan amount under Nano Youth car Loan scheme is Rs.____ Lac
a) 1 b) 2 c) 2.75 d) 3
***
ANSWERS TO P SEGMENT ADVANCES
1. (b) 2. (c) 3. (c) 4. (c) 5. (c) 6. (d) 7. (b) 8. (c) 9. (b) 10. (a)
11. (d) 12. (b) 13. (d) 14. (c) 15. (b) 16. (b) 17. (d) 18. (b) 19. (b) 20. (b)
21. (a) 22. (d) 23. (d) 24. (a) 25. (c) 26. (c) 27. (c) 28. (c) 29. (c) 30. (b)
31. (d) 32. (b) 33. (d) 34. (d) 35. (b) 36. (a) 37. (c) 38. (b) 39. (a) 40. (d)
41. (c) 42. (c) 43. (a) 44. (b) 45. (c) 46. (c) 47. (b) 48. (d) 49. (d) 50. (d)
51. (d) 52. (d) 53. (b) 54. (b) 55. (d) 56. (d) 57. (c) 58. (d) 59. (a) 60. (a)
61. (d) 62. (b) 63. (a) 64. (a) 65. (d) 66. (a) 67. (d) 68. (c) 69. (b) 70. (d)
71. (c) 72. (a) 73. (a) 74. (d) 75. (d) 76. (a) 77. (c) 78. (b) 79. (c) 80. (c)
81. (b) 82. (b) 83. (b) 84. (c) 85. (b) 86. (b) 87. (c) 88. (c) 89. (b) 90. (a)
91. (d) 92. (b) 93. (d) 94. (d) 95. (b) 96. (a) 97. (a) 98. (b) 99. (c) 100. (b)
101. (b) 102 (d) 103. (a) 104. (a) 105. (a) 106. (b) 107. (c) 108. (b) 109. (c) 110. (a)
111. (b) 112. (c) 113. (a) 114. (d) 115. (c) 116. (c) 117. (b) 118. (a) 119. (c) 120. (d)
121. (a) 122. (a) 123. (d) 124. (c) 125. (a) 126. (d) 127. (d) 128. (d) 129. (c) 130. (c)
131. (a) 132. (b) 133. (a) 134. (d) 135. (a) 136. (d) 137. (b) 138. (d) 139. (a) 140. (a)
141. (d) 142 (d) 143. (a) 144. (d) 145. (d) 146. (a) 147. (a) 148. (a) 149. (d) 150. (d)
151. (b) 152. (b) 153. (d) 154. (c) 155. (d) 156. (a) 157. (d) 158. (c) 159. (d) 160. (d)
161. (d) 162. (a) 163. (a) 164. (c) 165. (c) 166. (c) 167. (b) 168. (b) 169. (c) 170. (c)
171. (c) 172. (c) 173. (a) 174. (b) 175. (a) 176. (b) 177. (d) 178. (c) 179. (b) 180. (c)
181. (c) 182. (a) 183. (a) 184. (d) 185. (c) 186. (b) 187. (b) 188. (c) 189. (c) 190. (a)
191. (b) 192. (b) 193. (c) 194. (c) 195. (d) 196. (b) 197. (b) 198. (a) 199. (b) 200. (e)
201. (c)
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SME ADVANCES PRODUCTS
1. One of the eligible criteria under SME Smart Score Scheme is the Chief Promoter / Chief
Executive should be below years of age.
a) 50 b) 55 c) 60 d) 66
2. Under SME Smart Score Model, the scoring is done under which of the following
parameters ?
a) Personal, Business & Collateral b) Personal, Economic & Collateral
c) Business, Collateral & Physical d) No parameters fixed
3. Under SME Smart Score quantum of WC& TL loan is restricted to ____% of annual turnover
and ____% of project costs respectively.
a) 20 & 50 b) 20 & 60 c) 20 & 67 d) 20 & 70
4. Under SME Smart Score Scheme Minimum credit score in aggregate to be obtained for
being eligible for finance is % or more.
a) 40 b) 50 c) 60 d) 75
5. Maximum quantum of finance obtained for trade & services under SME Smart Score
scheme is _____
6. The unit should score a minimum score of ________% under each sub head of Business,
Personal and Collateral for becoming eligible to avail credit facility under SME Smart Score
a) 50 b) 60 c) 70 d) 80
7. In case of Working Capital needs, a SSI Unit can be granted % of annual turnover subject
to a maximum of not exceeding Rs. lacs under SME Smart Score
a) 10, 15 b) 15, 20 c) 20, 50 d) 25, 30
8. In case of Term Loan, a SSI unit can be granted ___% of project cost subject to a maximum
of not exceeding Rs.______ lacs under SME Smart Score
a) 47, 15 b) 57, 20 c) 67, 50 d) 77, 30
9. Moratorium on Term Loan under SME Smart Score can be provided for a period not
exceeding ______ months
a) 3 b) 6 c) 9 d) 12
10. Term Loan under SME Smart Score will be repaid in maximum of ____ years excluding
moratorium period
a) 5 b) 7 c) 8 d) 9
11. Working Capital Limit under SME Smart Score Scheme is sanctioned for a period of
years subject to annual review.
a) 1 b) 3 c) 2 d) 5
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12. Which of the following is not true in regards to Smart score scheme
a) Quantum of Finance available under SSI units is Rs.5lacs to below Rs.50 lacs
b) Quantum of Finance available under Trade & Services is Rs. 5 lacs to Rs. 25 lacs
c) Margin requirement is 25% for working capital component and 33% for TL component
d) None of these
13. Minimum & Maximum quantum of loan under SBI Asset Backed Loan is ___ lacs
to________ lacs respectively.
a) 5 & 500 b) 10 & 5000 c) 20 & 1000 d) 10 & 2000
14. Under Asset Backed Loan , in case of an advance of Rs.10 Crores, the amount of finance
is limited to___% of value of property
a) 50% b) 45% c) 60% d) 100%
15. Under SBI Asset Backed Loan , drop line overdraft limit sanctioned for a maximum period
of _____ months.
a) 84 b) 96 c) 180 d) 60
16. Under Asset Backed Loan , in case of an advance of Rs.15 Crores, the amount of finance
is limited to___% of value of property
a) 50% b) 45% c) 60% d) 100%
17. The nature of facility under Asset Backed Loan is always _______based.
a) Fund & Non-Fund b) Fund c) Non-Fund d) Asset
18. Under Asset Backed Loan , stock statement will be obtained at _____intervals other than
Demand Loan or Term Loan.
a) Monthly b) Half-yearly
c) Quarterly d) Yearly (28th Feb)
19. Maximum finance to operators working for ola cabs is Rs._______ lacs.
a) 10 b) 20 c) 50 d) 100
20. Inspection of property, unit and activity should be carried out at ___intervals under Asset
Backed Loan scheme
a) Yearly b) Quarterly c) Half yearly d) Monthly
21. Under SBI Construction Equipment Loan minimum loan requirement amount is
Rs.______ lacs
a) 25 b) 50 c) 75 d) 100
22. Under Asset Backed Loan, property mortgaged needs to be within a radius of _____ km
from the branch.
a) 20 b) 25 c) 15 d) 10
23. Under Asset Backed Loan Scheme, external credit rating is mandatory for sanction of
limits above Rs._____Crs but will not be a factor for pricing.
100
24. To be eligible for finance under SME Credit Plus the borrowers' account should be classified
as standard asset as on 31st march of past consecutive_________.
a) 1 yr b) 2 yrs c) 3 yrs d) 4 yrs
25. Under SME Credit Plus the limit can be utilized ___ times a year
a) 3 b) 6 c) 9 d) 12
26. Under SME Credit Plus there should be a gap of ____days between complete repayment
and fresh disbursal
a) 10 b) 15 c) 30 d) 60
27. Maximum amount of loan that can be sanctioned under SME Credit Plus is Rs______
28. What will be the primary security in case of credit facilities under SME Credit Plus ?
a) Hypothecation of stocks b) Hyp. of Book Debts
c) Both of a) and/or b) d) NIL
29. Each withdrawal for the additional limits provided under SME Credit Plus, should be
repaid within ______ months
a) 1 b) 2 c) 3 d) 4
30. Maximum amount of loan that can be sanctioned under SME Credit Plus is ______% of
aggregate working capital limit
a) 10 b) 15 c) 20 d) 25
31. Type of facilities sanctioned under SME credit plus scheme is
a) Clean Cash Credit b) Term loan
c) Composite loan d) None of these
32. In case of loans for working capital under SME Credit Card, the stock statement has to be
obtained once in a
a) Month b) Quarter c) Half-year d) Year
33. The maximum amount of loan that can be sanctioned under 'SME Credit Card' is
Rs. lacs ______.
a) 10 b) 15 c) 20 d) 25
34. SME Credit Card can be given to SSI Units with satisfactory track record of ________years.
a) 1 b) 4 c) 3 d) 2
35. Term Loan portion under SME Credit Card Scheme will be repaid in a maximum of ______
years in suitable installments
a) 3 b) 5 c) 7 d) 9
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36. In case a SSI unit intends to avail credit facility under SME Credit Card Scheme, what type
of collateral security will be taken by the bank?
a) EM b) RM
c) TPG d) Not to be insisted upon
37. The validity of SME Credit Card is
a) Two years subject to annual review and satisfactory conduct of the account
b) Three years subject to annual review and satisfactory conduct of the account
c) Five years subject to annual review and satisfactory conduct of the account
d) None of these
38. How much score must be scored by a unit in order to be eligible for finance under SME
Credit Card Scheme?
a) 30 b) 33 c) 36 d) 39
39. Limit under SME Credit Card Scheme of a small business unit/retail trader will be at __ %
of their annual turnover or % of turnover of the last 12 months in their accounts,
whichever is higher
a) 10, 10 b) 15, 15 c) 20, 20 d) 25, 25
40. Limit under SME Credit Card Scheme to a SSI unit will be assessed as per
a) Operating Cycle Method b) Traditional Method
c) Nayak Committee d) PBS Method
41. Maximum loan financed to self- employed and professionals under SME credit card scheme
is ______% of gross annual income as declared in their income tax return
a) 50% b) 75% c) 100% d) 125%
42. % margin will be obtained for loan sanctioned over Rs. 25000/- and up to Rs.10 lacs
under SME Credit Card Scheme?
a) 10 b) 20 c) 25 d) Nil
43. To renew the CC limit under SME Credit card how much minimum % of credit summations
are required in the account.
a) 50% of projected turnover b) 75% of annual turnover
c) 100% of projected turnover d) 150% of projected turnover
44. Under Artisan Credit Card Scheme Minimum score to be obtained for being eligible for
finance is %.
a) 40 b) 50 c) 60 d) 75
45. Maximum quantum of finance obtained under Artisan Credit Card scheme is
a) 0.50 lacs b) 1.00 lacs c) 1.50 lacs d) 2.00 lacs
46. Collateral security obtained under Artisan Credit Card is :
a) 35% b) 40% c) 50% d) Nil
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47. _____% margin will be obtained for loan sanctioned over Rs. 25000/- and up to Rs. 2 lacs
under Artisan Credit Card Scheme?
a) 10 b) 20 c) Nil d) 25
48. The portion of limit used for purchase of tools etc may be made repayable in years
under Artisan Credit Card Scheme
a) 3 b) 5 c) 7 d) 9
49. Which of the following is not true in regards to Artisan Credit Card
a) Preference to be given to artisans registered with the Development Commissioner
(Handicrafts)
b) Thrust to be to finance in clusters and preferably those supported by a SHG
c) Existing borrowers with limits upto Rs.2 lacs and satisfactory track record are
also eligible.
d) None of these
50. The limit under artisan credit card is reviewed every year but valid for ___years subject to
satisfactory conduct of the account
a) 1 b) 2 c) 3 d) 5
51. Under School Plus Scheme for financing educational institutions, quantum of finance is
minimum & maximum respectively.
a) 10 lacs & 50 lacs b) 2 lacs & 10 lacs
c) No cap d) 10 lacs & 25 lacs
52. Under School Plus Scheme amount of margin contributed by the institution is % of
the project cost
a) 15% b) 20% c) 25% d) 30%
53. Under School Plus Scheme, for loans between Rs.2.00 lacs to Rs.10.00 lacs, EM of land
& building and other immovable assets of the school/guarantor for %of the loan
amount should be taken as collateral.
a) 10% b) 20% c) 30% d) 50%
54. DSCR under School Plus Scheme should not exceed
a) 1.25 b) 1.50 c) 1.75 d) 2.00
55. Loan under School Plus Scheme should normally be repaid in ____to ______EMIs
depending upon the quantum of the loan
a) 36, 60 b) 36, 84 c) 36, 96 d) 36, 120
56. Under Doctor plus Scheme, no tangible collateral security for loan amounts up to
Rs. _________lacs is required.
a) 10 b) 15 c) 20 d) 25
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57. In Doctor Plus scheme, minimum score of _____in credit scoring model is required for
sanctioning the loan upto Rs.25 lacs.
a) 30 b) 40 c) 50 d) 60
58. In Doctor Plus scheme, if the CRA rating is below_____, proposal will not be considered
for sanction.
a) SB-6 b) SB-7 c) SB-8 d) SB-10
59. Minimum DSCR under Doctor Plus is
a) 1.5:1 b) 1.75:1 c) 2.00:1 d) None of these
60. Under 'Doctor Plus' maximum ceiling of limits for Corporates in metro and urban areas
is __________.
a) Rs. 10 lacs b) Rs. 1 crore c) Rs. 5 crores d) Rs. 10 crore
61. Under 'Doctor Plus' maximum ceiling of limits for individual in other areas
a) Rs. 10 lacs b) Rs. 1 crore c) Rs. 5 crores d) Rs 10 crore
62. The maximum repayment period under Doctor Plus Scheme for buying equipment &
expansion/renovation is years
a) 5 b) 7 c) 10 d) 9
63. Moratorium under Doctor Plus Scheme can be granted for a period of_____months.
a) 3 b) 6 c) 12 d) 24
64. The maximum amount of loan under Arthias Plus Scheme is Rs.
65. Which type of credit facility can be granted under Arthias Plus Scheme ?
a) Cash Credit (Hyp. of Book Debts) b) Term Loan
c) Demand Loan d) CTL
66. The margin required under Arthias Plus is %
a) 25 b) 20 c) 40 d) 10
67. The loans under Arthias Plus can be sanctioned against hypothecation of book debts not
older than _____.
68. Hypothecation of receivables and movable assets if any EM of non-agricultural property,
either residential or commercial belonging to the borrower or guarantor for ___times the
loan amount is required as collateral security under Arthias plus scheme.
a) 0.5 b) 1 c) 1.5 d) 2
69. The loan financed under Arthias plus scheme to be liquidated within ____.
70. CGTMSE came into existence with effect from _____________
a) 15.08.2002 b) 01.08.2002 c) 15.08.2000 d) 01.08.2000
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71. CGTMSE does not include any exposure extended to ________
a) Retail Trade b) SRTO c) Small Business d) None of these
72. CGTMSE cover is applicable to new as well as existing Micro & ______Enterprises .
a) Medium b) Large c) Small d) None of these
73. The Nodal Officer of our bank is posted at each of our RBO & ________.
a) ZO b) SMECCC c) LHO d) None of these
74. In Asset Backed Loan for Commercial Real Estate the maximum elligible loan which can
be sanctioned in Tier-I branches is________.
a) Rs. 100 Cr b) Rs. 35 Cr c) Rs. 40 Cr d) Rs. 50 Cr
75. Under Asset Backed Loan for Commercial Real Estate , in case of an advance of Rs.5
Crores, the amount of finance is limited to___% of value of property
a) 60% b) 50% c) 40% d) 30%
76. Under Asset Backed Loan for Commercial Real Estate ,____% margin is obtained on
project cost for fixed asset requirement
a) 30 b) 40 c) 20 d) 25
be sanctioned in Tier-II,III branches is________Crores.
a) 25 b) 5 c) 20 d) 10
be sanctioned in Tier-IV,V,VI branches is________Crores.
a) 1 b) 2.5 c) 5 d) 3
79. Under Asset Backed Loan , in case of early closure, pre-payment penalty is going to be
charged at ___%.
a) 1.5 b) 2 c) 1 d) 0.5
80. Minimum amount under Rent Plus Scheme that can be sanctioned is Rs. ________
a) 20000 b) 50000 c) 100000 d) 150000
81. Under Rent Plus Scheme collateral security obtained is First Charge on property rented
out or any other property of a value not less than ________ of the loan amount.
a) 130% b) 120% c) 133.34% d) 150%
82. Under Rent Plus Scheme, maximum repayment period of the loan is ______ years or the
residual lease period whichever is less.
a) 12 b) 10 c) 7 d) 5
83. What will be the primary security in case of Rent Plus Scheme?
a) Assignment of receivables
b) Recording of power of attorney with the lessee
c) None of these
d) Both a & b
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84. % Margin to be obtained under Rent Plus
a) 10 b) 15 c) 20 d) 25
85. Under Rent Plus Scheme types of facilities are
a) CC b) TL c) LC & BG d) All the above
86. Which of the following type of facility is sanctioned under SBI Shoppe Scheme ?
a) Cash Credit
b) Cash Credit and Term Loan
c) Cash Credit, Term Loan and any other type
d) Term Loan only
87. Maximum quantum of finance under SBI Shoppe is
88. Minimum margin required for purchase of old premises under SBI Shoppe is
a) 10% b) 20% c) 30% d) 40%
89. Maximum moratorium period for repayment of loan under SBI Shoppe is:
90. Minimum DSCR under SBI Shoppe is
a) 1 b) 1.33 c) 1.50 d) 1.75
91. In case of rented property ___to be invariably obtained from the owner lesser of the property
under SBI Shoppe scheme.
a) NOC & No Lien Letter b) NOC & No Mortgage letter
c) No Lien letter & No Mortgage letter d) Consent Letter
92. Term Loan sanctioned under SBI Shoppe should be repaid in _____ years
a) 3 to 5 b) 3 to 7 c) 5 to 7 d) 7 to 9
93. Under Doctor Plus Scheme the maximum loan which can be sanctioned to an Ayurvedic is
Rs.___lacs.
a) 10 b) 20 c) 25 d) 30
94. Under Finance to RESTAURANT scheme the margin required is
a) 40% b) 30% c) 25% d) 20%
95. Restaurants can be granted ________ facility
a) Cash Credit b) Term Loan c) Overdraft d) Both b or c
96. If loan is granted for Restaurants (land and building not included), it will be repaid in ___years
a) 3 b) 5 c) 7 d) 8
97. Rate of interest for finance to Restaurants will be charged as per
a) CRA Rating b) Scoring Model
c) Credit Evaluation Matrix d) None of above
106
98. The minimum amount of loan under loan to Business Correspondent scheme is _______.
a) 1,50,000 b) 50,000 c) 1,00,000 d) 25,000
99. The maximum amount of loan under loan to Business Correspondent scheme is ________.
a) 1,50,000 b) 2,00,000 c) 2,50,000 d) 3,00,000
100. The applicable margin under loan to Business Correspondent scheme is ________.
a) 25 b) 10 c) 15 d) 20
101. The collateral security to be obtained under loan to Business Correspondent scheme
is ______.
a) 25% b) NIL c) 50% d) 40%
102. The maximum repayment period in term loan facility under loan to Business Correspondent
scheme is _________.
a) 48 b) 60 c) 36 d) 84
103. The maximum amount of loan for two wheeler under loan to Business Correspondent
scheme is __________.
a) 2,00,000 b) 25,000 c) 1,00,000 d) 50,000
104. Maximum amount of loan under Open Term Loan(Mfg) is Rs. ________
105. Maximum amount of loan under Open Term Loan(Service sector) is Rs. ________
a) 250 lacs b) 200 lacs c) 150 lacs d) 100lacs
106. Margin requirement under Open Term Loan is % uniformly
a) 15 b) 10 c) 25 d) 20
107. The period of repayment under 'Open Term Loan' generally not to exceed ____ years
a) 7 b) 4 c) 5 d) 3
108. Under 'Open Term Loan' facility the sanction is valid for ________ months from the date
of Sanction.
a) 12 b) 24 c) 36 d) 60
109. Maximum amount of loan that can be sanctioned under General Purpose Term Loan for
SSI sector is Rs. ________
110. To be eligible for finance under General Purpose Term Loan for SSI sector , the unit should
have an Pre-tax profit in each of the immediately preceding ________ years
a) 1 b) 2 c) 3 d) 4
111. To be eligible for finance under General Purpose Term Loan for SSI sector , the unit should
have a CRA rating of ________ and above
a) SB 1 b) SB 3 c) SB 4 d) SB 5
107
112. Minimum margin for loans sanctioned under General Purpose Term Loan for SSI sector is
________ %
113. The repayment period for General Purpose Term Loan for SSI is_____
a) 5 to 7yrs b) 3 to 5yrs c) 1 to 3yrs d) None of these
114. Maximum amount of loan that can be sanctioned under Flexi loan for T&S sector is
Rs. ________
115. Minimum amount of loan that can be sanctioned under Flexi loan for T&S sector is
Rs. ________
116. To be eligible for finance under Flexi loan for T&S sector, the unit should have a TOL/TNW
not beyond ________
a) 1 b) 2 c) 3 d) 4
117. Which of the following is true in regards to DAL MILL PLUS scheme:
a) Profit making existing units with CRA rating of SB4
b) TL to be repaid in 5 to 7 years excluding a maximum moratorium period of 12 months
c) Above Rs.50lacs - EM of property/tangible security for not less than 25% of the loan amt.
d) All of these
118. Stand By Line of Credit for SSI can be given for a maximum period of ________ days at
any one instance.
119. Car Loan To SME Units can be sanctioned to an individual promoter when he has a net
annual income of ________ & above as per last IT return.
a) Rs. 5 lacs b) Rs.3 lacs c) Rs. 4 lac d) Rs. 2 lacs
120. Family for the purpose of Car Loan to SME Units means
a) Parents b) Spouse
c) Spouse & Children d) Parents, Spouse & Children
121. The maximum loan amount under Car Loan to SME Units would be
a) 2 times NAI b) 4 times NAI c) 3 times NAI d) 2.5 times NAI
122. The EMI/NMI % should not exceed ________ under Car Loan to SME Units
a) 75% b) 60% c) 50% d) 55%
123. After initial inspection, if SME Car Loan account becomes irregular by a default of ___
EMI, immediate post sanction inspection is required.
108
124. No valuation certificate is required for used vehicles under Car Loan to SME Units if car is
sold under __________.
a) Maruti True Value scheme b) Automartindia
c) a or b d) None of these
125. SME OPEN TERM LOAN product will be extended upto CRA rating of SB - .
a) 5 b) 6 c) 7 d) 10
126. For purchase of a new car under Car Loan to SME Units, loan sanctioned will be repaid
in ______ years
a) 5 b) 7 c) 8 d) 10
127. Unit with CRA of SB ____ and below is not eligible for finance under ABL (CRE).
a) 10 b) 9 c) 8 d) 7
128. Under Rice Mills Plus scheme collateral security is not required for a limit upto ______.
a) Rs. 50 lacs b) Rs.10 lacs c) Rs.20 lacs d) Rs.25 lacs
129. The maximum gestation period permissible under Rice Mills Plus is ________ months
a) 12 b) 18 c) 24 d) 36
130. The margin for advance against book debts under Rice Mills Plus is
a) 40% b) 25% c) 20% d) 30%
131. For working capital limits upto Rs5 crores under Rice Mills Plus assessment would be
done as per ________.
a) Nayak Committee b) Cash Budget
c) PBS d) MPBF
132. Which type of credit facilities can be provided under Rice Mills Plus Scheme?
a) C/C, T/L & Bill limit b) L/C & B/G
c) SME Credit Plus d) All of above
133. Under Fleet Operator scheme, the promoter should have an experience of ____ years or
more in the same line.
a) 2 b) 5 c) 3 d) 4
134. Fleet operator who is eligible to get advances under Fleet Operator Scheme should have
an existing fleet of minimum ____ vehicles
a) 10 b) 5 c) 20 d) 15
135. Under Fleet Operator scheme, the minimum average gross DSCR should be ___& above.
a) 1.75 b) 2.00 c) 1.40 d) 1.50
136. Borrower has to get min ____% score under scoring model to be eligible for SBI Fleet
Finance Scheme.
a) 25 b) 35 c) 40 d) 50
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137. The product for financing Ex-servicemen, Widows of servicemen, Disabled servicemen
is ________.
a) SEMFEX II b) SEMFEX III c) SEMFIX d) SEFMEX
138. If the existing fleet operator possesses an experience of more than 8 years in the transport
industry, he is going to score _____ marks in the credit scoring matrix.
a) 5 b) 4 c) 6 d) 3
139. For financing under Construction Equipment Loan, the CRA rating under new model should
be between ______ to _________.
a) SB-1 to SB-4 b) SB-1 to SB-7 c) SB-1 to SB-8 d) SB 1-12
140. The maximum amount of loan under construction equipment loan scheme is Rs. ________
a) Rs.25 lacs b) Rs. 1 crore c) Rs.10 crores d) Rs.25 crores
141. The minimum amount of loan under construction equipment loan scheme is Rs. ________
a) Rs.25000 b) Rs. 10 lacs c) Rs.25 lacs d) Rs.1 crore
142. The maximum amount of loan in 6 metros under construction equipment loan Scheme is
Rs. ________
a) Rs.1 crore b) Rs. 25 crores c) Rs.50 crores d) Rs.100 crores
143. Mortgage of property to the extent of at least ________ of the loan amount are obtained
as collateral security under construction equipment loan scheme
a) 25% b) 50% c) 75% d) 100%
144. The margin requirement under SEMFEX-II scheme is ____%
a) 25 b) 15 c) 20 d) 30
145. The maximum amount of loan that can be sanctioned under 'WEAVER Credit Card' is
Rs. ________ lacs
a) 2 b) 15 c) 20 d) 25
146. Term Loan portion under weaver Credit Card Scheme will be repaid in a maximum of
years in suitable installments
a) 3 b) 5 c) 7 d) 9
147. As per the scoring model for Weaver credit Card Scheme, a unit has to score minimum of
________ % score to qualify under the scheme
a) 50 b) 60 c) 70 d) 80
148. ____% margin will be obtained for loan sanctioned over Rs. 25000/- and up to Rs.2 lacs
under weaver credit Card Scheme?
a) 10 b) 20 c) 25 d) Nil
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149. Which of the followings statements about 'Weaver credit card' is "incorrect":
a) The credit card would be valid for 3 years subject to annual review by the Bank.
b) No need of financial statement for purpose of annual review of limit.
c) No fees will be charged at the time of review/ renewal of Card
150. The maximum amount of loan under corporate loan for non-corporate borrowers of C&I
(Mfg) & SSI segment scheme is Rs. ________
a) Rs.25 lacs b) Rs. 1 crore c) Rs.5 crores d) Rs.10 crores
151. For new connection under SBI Builder Finance for Residential Project under Sole Banking
minimum rating should be ________.
a) SB 05 b) SB 07 c) SB 10 d) SB 09
152. Maximum exposure to corporates under SBI Builder Finance for Residential Project under
Sole Banking is ________.
a) 25 cr b) 100 cr c) 200 cr d) 400 cr
153. Maximum repayment period under SBI Builder Finance for Residential Project under Sole
Banking is ________ months.
a) 60 b) 36 c) 72 d) 84
154. Under Dall Mill Plus scheme loans upto Rs ______ lacs to be mandatorily covered under
CGTMSE.
a) 10 b) 20 c) 50 d) 100
155. Expand MUDRA
a) Micro Units Development and Refinance Agency
b) Medium Units Development and Refinance Agency
c) Macro Units Development and Refinace Agency
d) Micro units Development and Recreation Agency
156. As per MUDRA, loans upto Rs.50,000 will be classified under_____ category.
a) Sishu b) Kishore
c) Tarun d) None of the above
157. As per MUDRA, loans from Rs. 50,001 to Rs.5,00,000 will be classified under_____
category.
a) Sishu b) Kishore
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158. As per MUDRA, loans from Rs. 5,00,001 to Rs.10,00,000 will be classified under_____
category.
a) Sishu b) Kishore
159. Under SBI Medical Equipment Finance Scheme maximum ceiling is up to Rs. ____ Crore.
a) 10 b) 20 c) 30 d) 40
160. Under Cotton Ginning Plus scheme, loans upto Rs. ______ lacs to be mandatorily covered
under CGTMSE.
a) 10 b) 20 c) 50 d) 100
***
KEY TO SME ADVANCES PRODUCTS
1 D 21 A 41 C 61 C 81 C 101 B 121 B 141 C

2 A 22 B 42 B 62 A 82 B 102 B 122 B 142 C
3 C 23 B 43 A 63 C 83 D 103 D 123 C 143 A
4 C 24 B 44 C 64 C 84 D 104 A 124 C 144 C
5 C 25 D 45 D 65 A 85 B 105 D 125 B 145 A
6 A 26 B 46 D 66 C 86 D 106 B 126 B 146 A
7 C 27 D 47 B 67 A 87 B 107 D 127 A 147 B
8 C 28 D 48 A 68 C 88 D 108 A 128 A 148 B
9 B 29 B 49 D 69 A 89 B 109 A 129 A 149 D
10 A 30 C 50 C 70 D 90 D 110 C 130 A 150 D
11 C 31 A 51 C 71 A 91 A 111 B 131 A 151 A
12 D 32 D 52 A 72 C 92 B 112 C 132 D 152 C
13 D 33 A 53 B 73 B 93 A 113 B 133 B 153 A
14 C 34 D 54 D 74 D 94 C 114 D 134 A 154 C
15 C 35 B 55 B 75 A 95 D 115 A 135 D 155 A
16 A 36 D 56 D 76 D 96 B 116 D 136 B 156 A
17 B 37 B 57 B 77 C 97 C 117 D 137 A 157 B
18 B 38 C 58 C 78 C 98 D 118 D 138 A 158 C
19 C 39 C 59 A 79 C 99 C 119 C 139 C 159 B
20 C 40 C 60 D 80 B 100 B 120 C 140 D 160 C
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AGRICULTURAL ADVANCES
1. Obtention of 'No dues certificate' for granting loans under agriculture segment has been
dispensed with for credit limit upto Rs.
a) 20,000 b) 25,000 c) 50,000 d) 1,00,000
2. Which of the following is one of SBI'S initiatives under "Bonding with Farmers" ?
a) APKA GAON b) HAMARA GAON
c) SBI Ka Apna Gaon d) APNA GAON
3. No margin is stipulated for Agricultural Loans , be it term loan or Crop Loan upto
Rs. .
a) 25,000/- b) 50,000/- c) 1,00,000/- d) 5,00,000/-
4. Which of the following statements are correct w.r.t security norms in agriculture finance.
a) For Crop loans upto Rs. 1000/-, only DP note or Loan Agreement has to be obtained.
b) For Crop Loans from Rs. 1000/- to Rs. 100000/- only Hypothecation of Crop has to
be taken.
c) For Crop loans above Rs. 100000/-, hypothecation of crop and mortgage /charge
over land has to be taken.
d) All are correct
5. Mixed farming means:
a) Cultivation of more than one crop on the same land
b) Cultivation of cereals & oilseeds on the same land
c) Cultivation of cereals & pulses on the same land
d) Cultivation of crops and goat rearing
6. Operation Flood aimed at:
a) To cover more agricultural land under irrigation
b) Increase in milk production
c) Prevention of flood
d) Inter connectivity of prime rivers of the country
7. Who was the chairperson of the committee on Financial Inclusion set up by RBI ?
a) H. R. Khan b) S. S. Tarapore
c) Rakesh Mohan d) Dr. C. Rangarajan
8. Who was the chairman of the working group , which was formed to revise, attune and
make the kisan Credit Card scheme to suit to current requirements of the farmers?
a) Ms. Ranjana Kumari b) Shri Pratip Chaudhury
c) Shri T.M.Bhasin d) Shri K.C.Chakraborty
113
9. In which year was the revised KCC scheme introduced in our bank ?
a) 2010 b) 2011 c) 2012 d) 2013
10. Financial Inclusion is defined as
a) Delivery of credit at an affordable cost to the vast section of disadvantaged & low
income groups
b) Delivery of financial services to rural poor
c) Delivery of financial services to rural poor & urban poor
d) Delivery of financial services at an affordable cost to the vast section of disadvantaged
& low income groups
11. As per instructions of the Bank, Post dated cheques should be obtained for all ATLs,
sanctioned beyond Rs. _____ lacs including Govt. sponsored scheme loans, sanctioned
as ATL.
a) 50,000/- b) 1,00,000/- c) 2,00,000/- d) 5,00,000/-
12. R V Gupta committee is associated with .
a) Priority Sector Lending
b) Interest Subvention to Short term Agri Advance
c) Simplification of Agricultural document
d) Lending to SHGs
13. Service area approach is applicable to
a) All advances
b) Not applicable for advances under Govt. sponsored scheme
c) Not applicable to advances except under Govt sponsored scheme
14. Which of the followings is Kharif crop season ?
a) July - Oct b) April - Sept c) July - Dec d) July - March
15. Which of the followings is Rabi crop season ?
a) Oct - Feb b) Oct - March c) Nov - May d) Dec - May
16. Which of the following was the objective of creating Separate strategic business unit i.e
Agriculture Business unit (ABU) during 2004 to drive agriculture business:
a) Providing focussed attention to the banking requirements of the agriculture segment
b) Making agri finance a commercial proposition than a directed lending
c) Focussing on key corporate and institutional relationships in emerging opportunities
and special initiatives in agri related areas
d) Achieving 18% benchmark (lending target) set by RBI
e) All of the above
114
17. The progressive farmer means who
a) Uses advanced pre-harvest / post harvest technologies
b) Having irrigation facilities
c) Crop productivity is more than the average levels
d) Maintaining good track record for at least one year
e) All of the above
18. Progressive farmers can be financed production credit maximum to the tune of
a) SOF recommended by DLTC/SLTC b) 150% of SOF fixed by DLTC/SLTC
c) 200% of SOF fixed by DLTC/SLTC d) None of the above
19. If, targets under Agriculture financing are not achieved, shortfall is to be contributed to:
a) RBI
b) Central Govt.
c) Rural Infrastructure Development Fund of NABARD
20. Organic farming refers to
a) Use of organic /bio fertilizers b) Use of bio pesticides
c) Use of GM seeds d) a&b
21. What is the land holding criteria for classification of a farmer as small farmer?
a) 5 hectares or less b) 2.5 hectares or less
c) 2 hectares or less d) 1.25 hectares or less
22. Inter Cropping means:
a) Cultivation of Paddy along with goat rearing
b) Cultivation of short duration crops between the rows of main crops on the same land
c) Cultivation of crops once in two years on the same land
23. "Partnership with Growth" the tagline associated with
a) Bank Finance to SHGs b) Bank Finance to JLGs
c) Contract farming d) Finance to partnership Firm
24. "Loan agreement -specified securities" has to be obtained for which of the agricultural
loans?
a) KGC
b) Stree Shakti Tractor Loan (With collateral)
c) Sahayog Niwas
d) Produce Marketing Loan
115
25. What is the maximum amount of loan that can be financed under "Scheme for Debt
Swapping of borrowers"?
a) Rs. 25,000/- b) Rs. 50, 000/- c) Rs. 1,00,000/- d) Rs. 2,00,000/-
26. Which among the followings are the eligibility criteria for availing production credit under
Krishak Uthaan Yojana ?
a) Permanent resident for 2 years
b) Permanent resident for 5 years
c) Non migratory tillers
d) a & c of above
27. Production credit under Krishak Uthaan Yojana is extended as
a) Revolving credit b) Overdraft
c) Term Loan d) Composite Term Loan
28. SBI Krishak Utthan Yojana is a scheme for
a) Upliftment of Farmers
b) Land development of Farmers
c) Loan waiver of Farmers who are debt ridden.
d) Financial Inclusion Scheme for Tenant Farmers, Oral Lessees & Share Croppers
29. Maximum loan amount that can be financed under Krishak Uthaan Yojana is
a) Rs. 25000/- b) Rs. 50000/- c) Rs. 100000/- d) Rs. 200000/-
30. Which categories of farmers are not eligible under SBI Krishak Utthan Yojana ?
a) Tenant Farmers & Share Croppers b) Oral Lessee
c) Migratory Tillers d) None of the above
31. The ceiling of Produce Marketing Loan has been enhanced from 25.00 lacs to
a) 15.00 lacs b) 20.00 lacs c) 25.00 lacs d) 50.00 lacs.
32. Loan under Produce Marketing Loan scheme is sanctioned
a) To provide finance to farmers to avoid distress selling
b) To provide finance to farmers to purchase produces from the market.
c) Both a & b
33. Bank is focussing on CASA deposits from institutions under agri - segment. Deposits
from which of the undermentioned institution will be considered under agri CASA as per
guidelines issued by the bank
a) Primary Agricultural Cooperative Societies (PACS), Farmers' Service Societies
(FSS), Cane-unions etc.
b) Deposits mobilized under various Govt-sponsored programmes/schemes for rural-
development, rural poverty alleviations
c) Commodity Boards, research institutions and other development corporations etc.
d) All the above
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34. The maximum tenor of produce marketing loan is upto
35. What is the extent upto which finance can be extended in case of Produce
Marketing loan?
a) 75% of the Market value of the produce
b) 60%of the Market value of the produce
c) 50%of the Market value of the produce
d) 40% of the Market value of the produce
36. As per new tractor loan scheme borrower should possess a minimum land holding of
.
a) 2 Acres b) 4 Acres c) 6 Acres d) 8 Acres
37. Margin under new tractor loan scheme is
a) 10 percent b) 15 percent c) 20 percent d) 25 percent
38. Bank has recently revised repayment norms in the New Tractor loan scheme, in order to
to have a standardized approach for regular repayment every month and to maintain
connectivity with the customer. The repayment schedule has to be drawn taking into
consideration
a) Annual income of the borrower
b) Hiring potential for the tractor
c) Percentage of income from allied activities.
d) Hiring potential for the tractor and Percentage of income from allied activities
39. As per new tractor loan scheme ,failure to get the vehicle registered with RTA within one
month from the date of delivery attracts penal interest of . for the period of default which
will be recovered from the borrower.
a) 1.00% b) 1.50% c) 2.00% d) 2.50%
40. Under new tractor loan scheme the value of mortgaged landed property in the name of
the borrower should be at least
a) 25% of loan value b) 50% of loan value
c) 75% of loan value d) 100% of loan value
41. Under new tractor loan scheme , credit score of ___________ and above are considered
to be GOOD proposals for sanction.
a) 55 and above b) 71 and above
c) 26 to 70 d) None of the above
42. Minimum Land holding requirement under Stree Shakti Tractor loan scheme
a) 2 Acres of land in the name of borrower
b) 2 acres land in the name of Borrower or co-borrower
b) 4 Acres of land in the name of co- borrower
d) No such requirement
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43. Tractor proposals with credit score, (under revised scoring model) --- & above may be
referred to the next higher authority for consideration .
a) 25 b) 26 c) 40 d) 56
44. Inspection of irregular tractor loan account is conducted at intervals
a) Half Yearly b) Quarterly c) Yearly d) Monthly
45. Which of the following statements is false regarding eligibility criteria of Stree Shakti
Tractor loan
a) The loan can be availed by woman as borrower or co-borrower
b) The relationship of woman as co-borrower may be wife / mother / sister /daughter of
the male borrower.
c) If the woman is not closely related to the borrower, then the borrower should be
advised to avail the loan under New tractor loan scheme.
d) If the woman is not closely related to the borrower, then loan proposal can be
considered with woman as guarantor.
46. Which of the following statements is false regarding income of the applicants under
Stree Shakti Tractor loan
a) The minimum net annual income for availing SSTL is Rs.1.50 lacs
b) The income of the co-borrower can also be considered for arriving at the Income criteria
c) Non-farm income also can be added to arrive at the minimum income criteria
d) Reasonableness of the expected farm income should be established keeping in
view, the nature of farming activity, landholding, cropping pattern, average
yield,custom hiring e.t.c
e) None of the above
47. Which of the following statements is false regarding obtention of collateral security under
Stree Shakti Tractor loan
a) The loan can be sanctioned with or without collateral security
b) Mortgage of the land is not envisaged in the loan scheme
c) Collateral security in the form of gold ornaments / Time Deposits with the Bank /
NSCs to the extent of minimum 30% (as per advance value) is ti be obtained.
d) Hypothecation of tractor purchased out of bank finance is primary security in the loan
48. A tractor is considered to have a life span of
a) 5000 hours of work b) 7000 hours of work
c) 8000 hours of work d) 10000 hours of work
49. How many parameters are taken into consideration for assessing the health of Self Help
Groups ?
a) 5 b) 10 c) 12 d) 16
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50. The maximum term for repayment under Stree Shakti Tractor loan, without collateral
security is
51. Under revised scoring model for tractor loans, proposals with credit score of & above
are considered 'Good Loans' for sanction.
a) 26 b) 40 c) 46 d) 56
52. The maximum term for repayment under Stree Shakti Tractor loan where collateral security
has been obtained
a) 24 months b) 36 months c) 48months d) 72 months
53. What is the percentage of margin stipulated under Stree Shakti Tractor loan, where no
collateral security has been obtained
a) 25% b) 30% c) 40% d) 50%
54. What is the percentage of margin stipulated under Stree Shakti Tractor loan, where
collateral security has been obtained
a) 25% b) 30% c) 10% d) 40%
55. Under KGC the quantum of loan is
a) Maximum Rs.10 lacs
b) Rs.5 lacs minus outstanding in the existing ATL account
c) 50 % of the value of the land to be mortgaged as collateral security or 5 times the
annual farm income whichever is lower, subject to maximum Rs. 10 lacs
d) All of the above
56. Which of the following statements is false regarding procedure to be followed in case of
irregular Stree Shakti Tractor loans
a) Immediate action should be initiated in case of return of cheques submitted as PDC
b) Tractor dealer services may be requisitioned for regularizing the Loan accounts
c) The loans with default of 3 monthly installments should to be handed over to the
'Recovery Agents' for seizure of the vehicle and for further of course of action
d) It should be ensured that possession and resale of the seized vehicles are completed
within 3 months of initiation of such action so that maximum amount is realised.
57. Consumption loan under KGC can be granted up to
a) 20% of the limit b) 30% of the limit c) 40% of the limit d) 50% of the limit
58. Following farmers are eligible to get Kisan Gold Card---------------
a) All Farmers irrespective of their previous track record.
b) Only selected farmers with handsome land holding.
c) Farmers irrespective of their land holdings, with good track record of repayment in
their ACC & ATL accounts for the last two years as on the date of application.
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59. Under Kisan Gold Card Scheme, a minimum margin of % in the case of farm
requirement and % in case of consumption purposes to be maintained)
a) 5% & 10% respectively b) 15% & 20% respectively
c) 20% & 25% respectively d) 10% & 30% respectively
60. How many accounts can be opened by a borrower, financed under KGC ?
a) 1 b) 2
c) 5 d) Any number of a/cs
61. Kisan Gold Card is valid for a period of years.
a) One b) Two c) Three d) Five
62. What is the usual norm of repayment under KGC ?
a) 3 to 4 years b) 4 to 5 years c) 6 to 7 years d) 8 to 9 years
63. Kisan Gold Card scheme (KGC) is applicable to
a) Small and Marginal farmers only.
b) Progressive farmers only
c) Highly progressive farmers only
d) All farmers irrespective of the size of their land holdings
64. Under KGC scheme finance can be made for:
a) Construction of farm house
b) Purchase of land
c) Purchase of tractor
d) None of these
65. KGC limit can be disbursed for
a) Purchase of two wheelers
b) Purchase of agricultural land
c) Construction of House
d) All of above
66. Financing of proposals for purchase of other farm equipments(except tractors, power
tillers &combine harvesters) where commercial test reports are not available, bank has
instructed that no specific approval is required for a particular model of the equipment to
be financed by the branches,subject to fulfillment of conditions stipulated. Which one of the
conditions is not as per guidelines of the bank.
a) Equipments should bear BSI mark or any other equivalent mark
b) Equipments should be recommended by any recognized Agricultural University or
State Govt Deptt or by other agencies approved by State Govt Deptt.
c) Equipments' other technical parameters should comply with the recommendations/
conditions stipulated by the recognized Agricultural University or State Govt Deptt or
by other agencies approved by State Govt Deptt
d) Equipments should be tested by Central Farm machinery Testing and Research
Institute, Buduni
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67. General Credit Card can be issued by
a) Rural Branch
b) Rural and Semi Urban Branch
c) Rural, Semi Urban and Urban Branch
d) Rural, Semi Urban, Urban and Metro Branch
68. Which among the following is correct in respect of General Credit Card?
a) To provide hassle-free credit to our customers
b) Credit to our customers is based on the assessment of cash flow
c) There is no collateral security, purpose or end-use of the credit
d) All of the above
69. General Credit Card can be issued to
a) Existing customers with more than 3 years of banking history with the branch/ having
Sizeable deposit
b) Customers with loan accounts which are classified as standard assets in our books.
c) Both a & b
d) All existing customers
70. General Credit Card is renewed after
a) Three years with half yearly review b) Three years with annual review
c) Five years with half yearly review d) Five years with annual review
71. Maximum loan amount that can be financed under GCC scheme:
a) 20% of production loan limit availed by the applicant
b) 20% of annual income of the applicant
c) 50% of production loan limit availed by the applicant
d) 20% of production loan limit and /or 20% of annual income of the applicant or
Rs. 25000/- whichever is lower
72. In which of the following schemes, credit is provided without insisting for security, purpose
or end use of funds:
a) KCC b) GCC
c) KGC d) Artisan Credit Card
73. Which date is fixed as repayment due date in case of KCC loan (Multi-cropping)sanctioned
in the month of May 2014
a) 31.01.2015 b) 31.03.2015 c) 31.05.2015 d) 31.07.2015
74. Under Revised Kisan Credit Card Scheme ,the limit sanctioned is valid for 5 years
whereas DP is valid for maximum subject to annual review.
a) One Year b) Two Year c) Three Year d) Four Year
75. Annual revision of Scale of Fianance should be done by of every year for
all the crops and be implemented automatically.
a) March b) April c) May d) June
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76. Short term production credits up to 3 Lacs per farmer is provided at ______% during
2014-15 and the additional interest subvention @ ______ in respect of the prompt
paying farmers for FY 2014-15.
a) 7% ; 2% b) 7% ; 4% c) 7% ; 1% d) 7% ; 3%
77. While granting limits under KCC, the scale of finance, is prepared by ______.
a) District Technical Committee b) District Consultative Committee
c) Block level Consultative Committee d) DRDA
78. While granting limits under KCC, the scale of finance, is approved by ______
a) District Technical Committee b) District Consultative Committee
c) Block level Consultative Committee d) None of above
79. While financing crop loan adopting scale of finance, following margins are required
a) 20% b) 25% c) 15% d) No margin
80. Additional interest subvention for crop loans up to three lacs for prompt repayment is:
a) 1% b) 1.5% c) 3% d) 3.5%
81. What is the margin on Crop loans above Rs.1, 00,000/-where cost of cultivation is worked
out by the Bank ?
a) 5% to 10% b) NIL c) 25% to 30% d) 15% to 25%
82. Purpose for which KCC can be granted ______
a) Crop production
b) Crop production & Ancillary activities
c) Crop production & Allied activities
d) Crop production, allied activities & ancillary activities
83. In Contract Farming, under tie-up arrangement crop loan can be granted without collateral
security up to
a) Rs. 25000 b) Rs. 50000 c) Rs. 100000 d) Rs. 200000
84. In case of Agricultural Term loans (where movable assets are created), norms for obtaining
collateral security have been relaxed for limits up to ______
a) Rs. 10,000/- b) Rs. 25,000/- c) Rs. 50,000/- d) Rs.1, 00,000/-
85. Which of the following guidelines is not correct regarding fixation of repayment due dates
for crop loans sanctioned under ACC/KCC scheme.
a) The repayment due dates fixed for Kharif and rabi season are 31st January and 31st
July respectively across the country
b) SLBC/DLTC recommended repayment due dates shall be adopted by the respective
Circles / branches to fall in line with the lead bank guidelines
c) Wherever repayment due date is not determined by SLBC/DLTC, the existing
common repayment due dates' may be fixed by Circles/ branches
d) All are correct
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86. Which of the statements below are not a special features of Tatkal Tractor Loan scheme,
which has been launched by the Bank recently.
a) The scheme has a provision for Differentiated EMIs (Monthly/Quarterly/Half yearly)
b) Loan is repayable within 48 to 60 months.
c) No processing fee is stipulated under the loan.
d) All of the above
87. AB1 (SIMPLE) is applicable to farmers sanctioned with loan of Rs. ______
a) Rs.50000 b) Rs.1 lac
c) Rs.2.00 lac d) None of the above
88. The account should have been a Standard Asset in the books of other Bank/FI during the
Preceding ______ years in case of takeover of Agriculture Advance.
a) 2 b) 3
89. ATL accounts with minimum ______ year's repayment period left, are eligible for takeover.
a) 2 b) 3
90. For takeover of ACC account from other Banks/Financial institutions, minimum amount
should be:
a) 1.00 lac b) 2.00 lac
c) 10.00 lac d) No such limitation
91. The quantum of loan as percent of on road price to be sanctioned under Tatkal Tractor
loan scheme is:
a) 75 % of the on road price of the tractor
b) 85 % of the on road price of the tractor
c) 90% of the on road price of the tractor
d) 100 %of the on road price of the tractor
92. For takeover of ATL account from other Banks/Financial institutions, other than allied
activities,minimum amount should be:
a) 1.00 lac b) 2.00 lac
c) 10.00 lac d) No such limitation
93. Inspection charges waived for AGL advances up to:
a) No inspection charge is levied on AGL advances
b) Inspection charge is levied irrespective of amount
c) All advances up to Rs 25000/-
d) All advances up to Rs 50000/-
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94. Scales of finance for crops means
a) Cost of cultivation net of margin
b) Cost of cultivation including margin
c) Total cost of cultivation
95. The Demand Collection and Balance (DCB) register is prepared at the branches on
______ basis.
96. Which of the following is treated as fiscal year for the purpose of maintaining DCB register?
a) 1st Jan to 31st Dec b) 1st April to 31st March
c) 1st July to 30th June d) None of the above
97. What is the maximum repayment period permissible under Produce marketing Loan
98. Valuation of the commodity offered as primary security under Produce Marketing Loan is
arrived at as
a) Minimum support price, where ever declared
b) Current market price
c) Price generally prevailing at the time of harvest of the commodity in the current year
d) Lowest of the three, as mentioned above
99. What is the amount of collateral security to be obtained in case the commodity offered as
security is stored at the farmer's own warehouse for loan limit of Rs.1,00,000/-
a) Rs. 20,000/- b) Rs. 25,000
c) Rs. 30,000/- d) No collateral to be obtained
100. KCC holders up to the age of ______ years are covered under Personal Accident Insurance
Scheme.
a) 50 b) 65 c) 70 d) No age limit
101. Personal Accident Insurance Scheme for KCC holders covers risk up to Rs. ______ in
case of death due to accident or permanent total disability i.e. (loss of 2 eyes/2 limbs)
a) Rs. 1,00,000/- b) Rs. 50000/- c) Rs. 25000/- d) Both b & c
102. While fixing limit of the borrower under KCC, the branch may take into Account production
credit requirements of the farmer for
a) A Month b) A Quarter c) A Half- Year d) The full Year
103. The credit limit of borrower under the revised KCC scheme is required to be reviewed___
a) Every Year b) After Two Years
c) After Three Years d) Not reviewed
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104. The farmer- borrower can avail contingent credit needs under KCC up to
a) 10% of peak credit limit, max. Rs. 5000/-
b) 15% of peak credit limit, max. Rs. 10,000/-
c) 20% of peak credit limit, max. Rs. 10,000/-
d) 20% of total production credit limit
105. Following needs of the farmer are treated as contingent needs under KCC
a) Family maintenance expenses b) Educational and Medical Expenses.
c) Post harvest credit requirements d) All of the above.
106. Repayment of Crop loan/KCC should be ______
a) Quarterly
b) Half yearly
c) Linked with Harvesting and Marketing of the crop
107. For production loans (ACC/KCC) upto Rs.50000/- and production loans upto Rs.1,00,000/-
under contract farming (or formal tie up arrangement for repayment), where land records
does not reveal prior indebtness to any bank/financial institution______ may be obtained
in place of 'No Dues certificate'
a) Letter from the local Panchayat where farming is being undertaken
b) Letter from the credit society of the locality
c) Letter from the revenue authorities
d) A self declaration from the prospective borrower towards his indebtness to other
financial institutions
108. Cheque book can be provided to
a) A literate KCC borrower
b) A literate KCC borrower with sanction limit of Rs 25,000/- and above
c) A literate KCC borrower with sanction limit of Rs 1 lakh and above
d) Any borrower availing KCC
109. ATM card can be provided to
a) A literate KCC borrower whose account is standard
b) A literate KCC borrower with sanction limit of Rs 25,000/- and above
c) A literate KCC borrower with sanction limit of Rs 1lakh and above
d) Any borrower availing KCC
110. Crop loan can be converted to term loan in case of natural calamities affecting more than
_____% of crop loss.
a) 40 b) 50 c) 60 d) 75
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111. Maximum quantum of finance under Scheme for purchase of land is Rs._______
a) 1.00 lakh b) 3.00 lakhs
c) 5.00 lakhs d) 10.00 lakhs
112. A document can be revived by:
a) Acknowledgement of debt b) Obtaining a revival letter
c) Part payment d) All of the above
113. What is the maximum tenure provided under Scheme for purchase of land?
a) 4 to 5 yrs b) 5 to 6 yrs c) 7 to 8 yrs d) 9 to 10yrs
114. The interest subvention in respect of short-term production credit up to Rs.3 lakh is
available to
a) public sector banks (PSBs)
b) public sector banks(PSBs) and Regional Rural Banks (RRBs)
c) public sector banks(PSBs), Regional Rural Banks(RRBs) and rural cooperative banks
d) public sector banks(PSBs), Regional Rural Banks(RRBs), Rural Cooperative Banks
and Non Banking Financial Companies
115. Crop season is decided by
a) RBI b) NABARD
c) SLBC d) Ministry of agriculture
116. Which of the following is not a criteria for considering eligibility under Scheme for purchase
of land.
a) The applicant should be either agricultural labourer, tenant farmer, share cropper
and small/marginal farmer
b) The land should not be in fragmented holdings
c) The land is in use for agricultivation/ development of agriculture
d) Applicants can be member of the same family (in case of multiple loans) even without
good repayment track record.
117. KCC is valid for ____ years and reviewed at ------periodical intervals
a) 1, 3 b) 5, 1 c) 1, 2 d) 2, 1
118. Inter Cropping means:
a) Cultivation of Paddy along with goat rearing
b) Cultivation of short duration crops between the rows of main crops on the same land
c) Cultivation of crops once in two years on the same land
119. While converting crop loan into term loan, interest portion is:
a) Paid by the borrower
b) Written off by the Bank
c) May be paid by the borrower or clubbed with the principal
d) Contributed by the State Government
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120. Crop loan is secured by __________ of the standing crop
a) Pledge b) Lien c) Mortgage d) Hypothecation
121. ATM card can be issued under which of the following schemes:
a) KCC b) GCC
c) KGC d) Artisan Credit Card
122. In case of finance to weaker section in Agricultural segment, cost of photo graph is to be
borne by ______
a) Borrower b) Bank
c) Borrower: Bank 50:50 d) Photograph not required
123. Obtaining Revival Letters in Agri segment is dispensed with, in case of________, which
are repaid regularly and are Standard Assets.
a) KCC Loan accounts b) Agri Term Loan accounts
c) Both KCC & Agri Term Loan accounts d) Agricultural Gold loans
124. National Agricultural Insurance Scheme, has been replaced with _______ scheme
a) National Agricultural Insurance programme (NAIP)
b) National crop Insurance Programme (NCIP)
c) National crop insurance scheme (NCIS)
125. Loan under Land Purchase scheme is sanctioned for ___________ purposes.
a) Purchase of land for construction of clinic
b) To purchase land for Agriculture.
c) Purchase of land for construction of house
126. In dairy, space requirement for each cow is ____ sq feet.
a) 40 sq. ft. b) 60 sq. ft. c) 80 sq. ft. d) 100 sq. ft.
127. A minimum distance of ______ meters should be maintained between two poultry farms.
a) 100 b) 300 c) 500 d) 750
128. In dairy, space requirement for each calf is ___ sq feet.
a) 40 sq. ft. b) 30 sq. ft. c) 25 sq. ft. d) 20 sq. ft.
129. Which accounts are eligible for availing loans under 'KRISHI PLUS II' campaign launched
by the Bank targeting growth of investment credit in agriculture segment?
a) Accounts in Agri segment which are satisfactorily conducted for the past 3 years
b) Accounts where repayment obligation has been met as and when the same was due
/demanded,
c) KCC accounts duly reviewed / renewed at least 2 times during the past 3 years will
also be treated eligible farmers
d) All the above
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130. Average lactation period is days & dry period is days in case of buffaloes.
a) 270 days & 100 days b) 270 days & 120 days
c) 240 days & 100 days d) 240 days & 120 days
131. Maximum amount that can be financed for purchase of milk transport vehicle under Dairy
Society Plus is ______
a) Rs. 5/- lac b) Rs. 4/- lac c) Rs. 3/- lac d) Rs. 2/- lac
132. Maximum Repayment period for financing under Dairy Plus and Dairy Society Plus
Schemes is _____ years.
133. Minimum Debt Service Coverage Ratio required under Dairy plus and Dairy Society Plus
schemes is _________
a) 1.50 b) 1.75
c) 2.00 d) No minimum ratio
134. What are the eligibility criteria for financing under Dairy plus scheme ________?
a) Applicant below the age of 65years
b) Applicant should be member of milk producing society.
c) Should own minimum 0.25 acre of land for every 5 animals for cultivation of fodder, if
dairy unit having less than 10 animals and one-acre for every 5 animals for units
having animals10 and above.
d) All of the above.
135. Minimum ________ distance should be maintained between two layer sheds
a) 100 feet b) 70 feet c) 150 feet d) 200 feet
136. Poultry sheds should be constructed ______ orientation to get sufficient sun light.
a) East - West b) North - South
c) NE - SW d) No such limitation
137. Under Broiler Plus the maximum loan per individual is
a) Rs. 9 lacs b) Rs. 2 lacs
c) Rs. 1 lac/5000 birds d) Rs. 5lacs
138. Collateral security required for finance under Broiler Plus is
a) Not needed up to Rs. 1 lakh b) Only for loans above Rs. 50,000
c) Equivalent to 50% of the loan amount d) None of the above
139. Cage system is ideal for rearing
a) Broilers b) Layers c) Breeding Stock d) Turkeys
140. NECC stands for
a) National Employment Creation Committee
b) National Egg Consumers Co-ordination
c) National Egg Chicken Committee
d) National Egg Co-ordination Committee
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141. Minimum flock size under Broiler Plus Scheme is
a) 5,000 birds b) 10, 000 birds
c) 15,000 birds d) No minimum size
142. Under Broiler Plus Scheme, the minimum DSCR is
a) 1.75 b) 1.50 c) 1.40 d) 2.00
143. APEDA means
a) Allied Agrl. Products Export Development Agency
b) Agricultural and Processed Food Products Export Development Authority
c) Agri. and Processed Food Products Export Dev. Agency
144. MPEDA stands for
a) Multi Purpose Employment Dev. Agency
b) Marine Pisciculture Employment Dev. Authority
c) Marine Products Exports Development Authority
145. Composite subsidies for general candidates, in the revised 'Scheme for Agri Clinic and
Agri Business Centers is @ ____ of total fund outlay.
a) 25% b) 36% c) 44% d) 30%
146. Under the revised 'Scheme for Agri Clinic and Agri Business Centre, Composite
subsidy, in the case of women/ SC/ST candidates from NE and hilly states is @ ___ of
total fund outlay.
a) 25% b) 36% c) 44% d) 30%
147. Advances to Agri Clinics and Agri Business Centres are classified as:
a) Direct finance to agriculture b) Indirect finance to agriculture
c) Non-priority sector advance d) None of the above
148. Under Agri-Clinic & Agri Business Centre, Soft loan without any interest is provided by
NABARD to the extent of _____.
a) 25% of loan amount
b) 50% of margin contributed by the applicant
c) 100% of margin
d) 100% of loan amount
149. Maximum Quantum of loan financed for an individual under Agriclinic & ABC is
150. Who among the followings is eligible for finance under Agri clinic and Agri Business centre?
a) Graduates in Agriculture and Allied subjects from state/central universities
b) Diploma in Agriculture and Allied subjects from state/central universities
c) Science graduates with Post Graduation in Agriculture and Allied subjects
d) All the above
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151. Under Differential Rate of Interest (DRI) scheme, the limit of the loan has been raised from
Rs. 6500/- to Rs._________.
a) Rs. 10,000/- b) Rs. 15,000/- c) Rs. 20,000/- d) Rs 25,000/-
152. Under Differential Rate of Interest (DRI) scheme, the limit for Housing, loan has been raised
to Rs_______.
a) Rs 10,000/- b) Rs. 15,000/- c) Rs. 20,000/- d) Rs. 25,000/-
153. RBI Guidelines stipulate advances under DRI to be at least ________%.
a) 1% of adjusted net bank credit
b) 1% of total advances outstanding as at the end of the previous year
c) 2% of total advances outstanding as at the end of the previous year
d) 2% of adjusted net bank credit
154. Swarna Dhara compaign relates to:
a) Sprinkler Irrigation b) Drip Irrigation
c) Canal irrigation d) Agri Gold loan
155. Interest Subvention of _____% is available in case of gold loans for crop production purpose.
a) 1.0% b) 1.5% c) 2.0% d) 3.0%
156. Our Bank stipulates a margin of ____ in case of Agri Gold Loan.
a) 30% b) 25% c) 20% d) 15%
157. Gold Smith charges are paid by debit to
a) Borrower's A/c b) Bank's Commission A/c
c) Bank's Charges A/c d) Bank's Interest A/c
158. Which among the following is correct regarding sanction of Agri Gold Loans?
a) Agri Gold loans can be sanctioned to illiterate borrowers.
b) Gold loans can be sanctioned for investment purpose
c) Ornaments pledged should be in joint custody.
d) All of above
159. Maximum loan amount that can be sanctioned under Agri Gold Loan is
a) Rs. 3.00 lacs b) Rs. 10. 00 lacs
c) 5 times of Annual Farm Income d) No limit is stipulated
160. Repayment period stipulated for Agri Gold Loan sanctioned for crop production is
a) 6 Months b) 12 Months c) 18 Months d) 30 Months
161. Agri Gold loan under the non interest subvention category can be financed for persons
a) engaged in agriculture, cultivating own and / or leased land
b) for allied activities like Dairy, Poultry, Piggery, Sheep etc.
c) to meet the investment credit needs of farmers including farm mechanization, land
development, irrigation, horticulture, floriculture,farm house, transportation of
agriculture produce etc
d) All of the above
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162. In case of agricultural gold loan, delivery of ornaments to a third party, signature of the
receiver will be obtained on ________
a) Gold loan ledger b) COS 49
c) Both a & b d) Not required
163. Effective rate of interest for Gold loans sanctioned under non-interest subvention category
will be
a) 7% b) 9% c) 10.25% d) 12%
164. Agricultural gold loans can be sanctioned as
a) Demand Loan b) Term Loan c) Over Draft
d) Cash Credit e) All of these
165. As per revised guidelines of Scheme for construction / modernization of Cold Storages for
Horticulture Produce, the implementing agency for sanction and release of subsidy is___.
a) NHB b) NABARD c) RBI
d) Cold storage Devp. Corporation of India
166. Under NHB Scheme, subsidy is calculated on the basis of ______.
a) Project Cost b) Bank loan
c) Land holding and type of crop d) Subsidy
167. The margin (except NE states, hilly areas & SC/ST) stipulated under our Gramin Bhanadaran
Yojana is
a) 15% b) 20% c) 25% d) 30%
168. Which is the objective of Gramin bhandaran Yojana is
a) To provide Storage infrastructure including ancillary structure and facilities
b) To create Marketing infrastructure and ancillary facilities as part of primary processing
of the value chain
c) To provide Primary processing facilities, immovable storage infrastructure, movable
machines and ancillary facilities as part of primary processing projects
d) All of the above
169. Micro-credit constitutes provision of credit not exceeding Rs. _______ per borrower either
directly or indirectly through SHG/JLG
a) 25, 000/- b) 100,000/- c) 50,000/- d) 5, 00,000/-
170. Finance to SHGs is recommended by:
a) Ojha Committee b) Kalia Committee
c) Talwar Committee d) Rangarajan Committee
171. The concept of Farmers Club was initiated by __________
a) SBI b) RBI c) NABARD d) GOVT.
172. Under Farmers' Club, the minimum and maximum number of members is ____& ______
respectively.
a) 4 & 10 b) 10 & 20 c) 10 & no ceiling d) 5 & 10
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173. _________ are the eligible members of the farmers Club
a) farmers
b) farmers as well as non-farmers
c) all villagers including willful defaulters
d) all farmers aged below 50 years only
174. For the purpose of reporting in performance report, the advances to self help groups
(SHGs)should be categorized under
a) SBF sub-segment b) SSI sub-segment
c) AGR segment d) According to activity of SHG
175. Bank linkage can be extended to a SHG in which of the following stages
a) Forming b) Storming c) Norming d) Functioning
176. As per the SHG concept storming is the ______ stage of development
a) 1st b) 2nd c) 3rd d) 4th
177. Under SHG Gold Card Minimum amount of advance is _______
a) Rs.25,000/- b) Rs.50,000/- c) Rs.1,00,000/- d) Rs.2,00,000/-
178. Which is the eligibility criteria of the SHG for extending finance under Sahayog Niwas
a) SHG with good repayment track record for payment for last 2 years
b) SHG with good repayment track record for payment for last 1 year
c) SHG with good repayment track record for payment for last 5 years
179. SHPI stands for _______
a) Self Help Posting Institutes b) Sahayata Hetu Provisions Insured
c) SatisfactionandHarmonyPurposesInsist d) Self Help Group Promotion Institutions
180. Who is responsible for repayment of SHG loans?
a) The NGO who formed the group b) The leader of the group
c) All the members jointly and severally d) None of the above
181. Who decides the rules and regulations for SHG _________?
a) The facilitator (who forms the group)
b) The banker
c) The leader of the group
d) All the members of the group with their collective wisdom.
182. SB account and loan account to SHG should be opened in the name of ______
a) The leader of the group b) Office bearers of the group
c) All the members of the group jointly d) Self Help Group only
183. SHG groups can be financed for construction of new house house, subject to a maximum
of Rs. _________
a) Rs. 25,000/- per member b) Rs. 50,000/- per member
c) Rs. 75,000/- per member d) Rs. 1, 00,000/-per member.
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184. The maximum period for repayment of loan under Sahyog Niwas Scheme is ______
a) 10 years b) 15 years c) 20 years d) No limit
185. Banks are eligible for grant assistance from NABARD for formation, nurturing and financing
of JLGs over a period of 3 years @ _______per JLG.
a) Rs. 2000/- b) Rs. 5,000/- c) Rs. 10,000/- d) Rs. 3000 /-
186. RBI has stipulated a priority sector lending target of ____ % for Indian Banks & ____% for
Foreign Banks.
a) 40 & 50 b) 18 & 40 c) 30 & 40 d) 40 & 32
187. RBI has stipulated Agricultural lending target of ___% for Indian Banks & ___% for
Foreign Banks.
a) 18 & 15 b) 18 & Nill c) 18 & 20 d) 40 & 32
188. Target for advance to weaker section should constitute _______ % of ANBC
a) 10 b) 20 c) 25 d) 40
189. RBI Guidelines stipulate advances under DRI to be at least _____%.
a) 1% of adjusted net bank credit
b) 1% of total advances outstanding as at the end of the previous year
c) 2% of total advances outstanding as at the end of the previous year
d) 2% of adjusted net bank credit
190. At least ____% of the total advances granted under DRI scheme should go to scheduled
caste/scheduled tribes.
a) 25% b) 40% c) 50% d) 70%
191. As per instructions issued by RBI, Agri advances up to Rs. _______ lakh against pledge/
hypothecation of agricultural produce (including warehouse receipts) for a period not
exceeding 12 months, irrespective of whether the farmers were given crop loans for raising
the produce or not, is considered as direct finance to agriculture.
a) Rs.10 lakh b) Rs. 25 lakh c) Rs. 30 lakh d) Rs. 50 lakh
192. Loans up to ______ granted for purchase and distribution of inputs for the allied activities
such as cattle feed, poultry feed, etc is treated as indirect agril. advance.
a) Rs. 25 lakh b) Rs. 30 lakh c) Rs. 40 lakh d) Rs. 50 lakh
193. A ceiling of up to ____ per dealer in drip irrigation/sprinkler irrigation system/agricultural
machinery, irrespective of their location, should be classified as indirect agriculture advance.
a) Rs. 25 lakh b) Rs. 30 lakh c) Rs. 50 lakh d) Rs. 100 lakh
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194. Which of the following is not considered as direct finance to agriculture segment as per
priority sector guidelines of RBI?
a) Loans to small and marginal farmers for purchase of land for agricultural purposes
b) Loans granted for pre harvest and post harvest activities such as spraying, weeding,
harvesting, grading, sorting and transporting
c) Finance for setting up of Agriclinics and Agribusiness Centres
d) Loans to distressed farmers indebted to non institutional lenders, against
appropriate collateral or group security
195. In case of advances to weaker sections, inspection charges should be levied @ ___% of
prescribed rates.
a) 100 b) 50 c) 25 d) No charges
196. Under priority sector, out of 18% net bank credit earmarked for AGL segment RBI stipulates
a maximum of -----% for indirect AGL advance.
a) 20% b) 25% c) 40% d) 15%
197. Match the followings:
a) Blue Revolution i. Food Production
b) Green Revolution ii. Oilseed Production
c) Yellow Revolution iii. Milk Production
d) White Revolution iv. Fish Production
198. Match the followings:
a) Black Revolution i. Flower Production
b) Brown Revolution ii. Rubber Production
c) Rainbow Revolution iii. Cocoa Production
199. Match the following:
a) Apiculture i. Flower Production
b) Mori Culture ii. Plant Propagation
c) Tissue Culture iii. Cultivation of malberry
d) Floriculture iv. Bee keeping
200. Match the followings
a) Apriculture i. Rearing of earth worm
b) Olericulture ii. Forest tree culture
c) Sylvi culture iii. Study of fruit crops
d) Vermi culture iv. Vegetable production
e) Pomology v. Mushroom cultivation
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201. As per instructions issued by the bank, discretion to decide Auction of gold ornaments
under agriculture segment is vested with _________________.
a) Regional Office b) Branch manager
c) LHO d) Cash Officer
202. Bank has launched Asset Backed Agri loan scheme for agriculture segment in the
name of ______.
a) Premium kisan Credit Card b) Premium Kisan Gold Loan
c) Premium Kisan Gold card d) Premium Kisan Gold scheme
203. Which of the mentioned feature is correct w.r.t Asset backed Agri Loan Scheme launched
by the Bank.
a) The application should be processed in 'Agri LOS' only.
b) Target group is Existing and New farmers as well as Good borrowers banking with
other banks
c) Finance is for traditional and modern farm and farm related activities including
emerging and High Tech activities in meeting the short term production credit and
investment credit.
d) All of the above
204. What is the minimum and maximum quantum of finance that can be sanctioned under
Asset backed Agri Loan Scheme launched by the Bank.
a) 2 lacs and 20 lacs b) 3 lacs and 30 lacs
c) 3 lacs and 20 lacs d) 3 lacs and 200 lacs
205. What is the collateral to be obtained under Asset backed Agri Loan Scheme
a) Mortgage of Agricultural Land
b) Mortgage of House property
c) Mortgage of SARFAESI complaint immovable property (Land/Building) pertaining
to the individual/partners/proprietor/their near relatives only and for value not less
than 200% of the loan amount for other Circles and 225% for Bengal Circle.
206. Bank has recently tied up with ___________ for auction of seized tractors through
organised Malls.
a) Shriram Automobile India Ltd. b) Shriram Tranport Co. ltd
c) Shriram Automall India Ltd (SAMIL) d) Shriram Multimall India Ltd
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207. Which of the following is not a feature of Special SBI OTS for Tractor & Farm
Mechanization Loans 2015-16 launched by the Bank recently.
a) 50 % waiver of interest calculated at contractual rate calculated from the date of
disbursement till date of compromise plus outstanding
b) Tractor, Combine Harvester, and Farm Mechanization Loan accounts with outstanding
upto Rs.25 lacs in AUCA and accounts stamped as Doubtful or Loss asset as on
30.09.2015 and disbursed on or before 31.03.2011 are covered under the scheme.
c) Other agri loan (like KCCs, other ATLs etc.) of the same Tractor and FM Loan
borrowers may also be covered with the same concessions
208. What are the modalities of payment under Special SBI OTS for Tractor & Farm
Mechanization Loans 2015-16.
a) 30% of the OTS amount has to be paid along with the application
b) 70% remaining amount should be paid within 60 days from the date of sanction of
OTS proposal or on or before 31st March, 2016, whichever is earlier
c) Final payment should be made on or before 31.03.2016
d) All are correct.
209. As per guidelines issued by RBI, bank has launched a new scheme for financing to joint
Liability groups for production and investment credit under Agri segment. Name of the
scheme is ___________
a) Revised Krishak uttan Yoyana b) Bhoomi Heen Krishak Utthan
c) Bhoomi Heen Kisan d) krushak vikas Yojana
210. Which of the below is not a feature of the recently launched product for financing of joint
Liability Group.
a) Loan to be granted is against the mutual guarantee offered by the group, maximum
amount of loan may be restricted to Rs.50,000 per individual.
b) Loan has to be secured by
***
136
AGL ADVANCES MCQ'S ANSWERS
1 B 26 D 51 D 76 D 101 B 126 B 151 B 176 B
2 C 27 A 52 C 77 A 102 D 127 C 152 C 177 D
3 C 28 D 53 D 78 B 103 A 128 D 153 B 178 B
4 D 29 C 54 C 79 D 104 D 129 D 154 D 179 D
5 D 30 C 55 C 80 C 105 D 130 B 155 C 180 C
6 B 31 D 56 E 81 D 106 C 131 C 156 A 181 D
7 D 32 A 57 A 82 D 107 D 132 C 157 A 182 D
8 C 33 D 58 C 83 D 108 B 133 B 158 D 183 B
9 C 34 A 59 D 84 D 109 A 134 D 159 D 184 B
10 D 35 B 60 C 85 A 110 B 135 B 160 B 185 A
11 C 36 A 61 A 86 D 111 C 136 A 161 D 186 D
12 C 37 B 62 C 87 B 112 D 137 A 162 A 187 B
13 C 38 D 63 D 88 A 113 D 138 C 163 C 188 A
14 B 39 C 64 D 89 A 114 C 139 B 164 E 189 B
15 B 40 D 65 A 90 A 115 C 140 D 165 A 190 B
16 E 41 B 66 D 91 D 116 D 141 A 166 A 191 A
17 E 42 A 67 B 92 B 117 B 142 C 167 C 192 C
18 C 43 B 68 D 93 C 118 B 143 B 168 C 193 B
19 C 44 D 69 C 94 A 119 C 144 C 169 C 194 C
20 D 45 D 70 B 95 D 120 D 145 B 170 B 195 B
21 C 46 E 71 D 96 C 121 A 146 C 171 C 196 B
22 B 47 E 72 B 97 D 122 B 147 B 172 C
23 C 48 D 73 D 98 D 123 B 148 B 173 B
24 B 49 D 74 A 99 D 124 B 149 C 174 C
25 C 50 B 75 B 100 C 125 B 150 D 175 C
201 B 202 B 203 D 204 D 205 C 206 C 207 D 208 D

209 C 210 B
197. a - iv , b - i , c - ii , d - iii
198. a - ii , b - iii , c - i
199. a - iv , b - iii ,c - ii , d - i
200. a - v ,b - iv , c - ii , d - i , e - iii.
137
INFORMATION TECHNOLOGY,
ALTERNATE CHANNELS & IS SECURITY
1. As per present instructions, in case of lost/stolen ATM card, the customer can block the
card in the following ways:
a) By lodging online request in 'Block ATM card' under 'e-Services' tab in post login
section of OnlineSBI
b) By calling up the contact centre
c) By sending an SMS to 567676
d) All the above
2. After expiry of the State Bank Debit Card, it has to be _____.
a) Reissued after extending the validity b) Renewed with new cards & new PIN
c) Renewed with same card & same PIN d) Renewed with new card & same PIN
3. The business partner in 'State Bank MobiCash'/ Mobile Wallet is ______
a) M/s. Oxigen Services (India) Private Ltd. b) Bharti airtel
c) BSNL d) Vodafone
4. As per our Banks IS Security Policy, which of the following is treated as a Security violation ?
a) Connecting modems to branch computers without approval
b) Installing latest anti-virus software in branch computers
c) By-passing Access control Mechanism
d) All of the above
5. Bank has increased the per transanction GRC limit to Rs. 5000/- to Rs._________ and
monthly transanction limit from Rs. 25,000 to Rs.__________.
a) Rs. 10000/- and 40000/-
b) Rs. Rs. 15000/- and Rs. 50000/-
c) Rs. 25000/- and Rs. 75000/-
d) Rs. 25000/- and Rs. 100000/-
6. The Corporate Internet Banking (CINB) variant consisting of a single user interface with
functional and security features similar to Retail Internet Banking is ________.
a) CINB SME b) CINB Saral
c) CINB Single d) CINB SAHAJ
7. IDRBT Stands for _________.
a) Institute on Development of Rural Banking Technology
b) Institute for Development of Research & Banking Technology
c) Institute for Development of Research Based Technology
d) Institute for Development and Research in Banking Technology
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8. Transaction Password is a feature of ______
a) RINB b) CINB Saral
c) CINB Vyapaar d) CINB Vistaar
9. Mimimum load value in SBI gift card is Rs. ________
a) 200 b) 100 c) 500 d) 1000
10. Mimimum load value in SBI eZ-Pay card is Rs. _______
a) 100 b) 200 c) 500 d) 1000
11. SBI eZ-Pay card is valid for _____ yrs.
a) 5 b) 10 c) 8 d) 22
12. A generic e-payment module which facilitates CINB enabled Corporate / Institutions to
define their web-page format on our Internet Banking website for making the payment by
the receiver of goods/services is named as ______.
a) e-Payment b) e-commerce c) i-collect d) SB Collect
13. National Financial Switch (NFS), the largest ATM network in the country, is controlled by____.
a) The National Payments Corporation of India
b) The Institute for Development and Research in Banking Technology
c) Reserve Bank of India
d) ATM Switch Centre (ASC)
14. Minimum Periodicity for replacement of Personal Computers in our Bank is _____.
15. The antivirus software implemented by WIPRO across SBI is _________.
a) SEP 11 b) Trend Micro
c) Norton Antivirus d) Kaspersky
16. Bank has introduced a new variant of card for SME segment customer for cash deposit
through GCC/ CDM called __________.
a) SME Insta Deposit Card b) Business Card
c) Green Remit Card d) VISA Classic Card
17. How many Accounts of the customer can be mapped to an Application based MBS facility?
a) 1 b) 5 c) 3 d) No Restriction
18. RBI has asked Banks to provide alerts (through SMS) to the card-holders for__.
a) All card not present (CNP) transactions
b) All CNP transactions of Rs. 5000 & above
c) All card transactions irrespective of amount
d) All card transactions used / made for merchant payments
19. In order to offer a better customer experience,the Bank has allowed the registration for
MBS through:
a) ATM b) Home Branch c) OnlineSBI d) All of these
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20. Per transaction limit of Fund transfer in GCC for a User is____.
a) 10000 b) 15000 c) 50000 d) 40000
21. Per transaction limit of Fund transfer in ATM C2A for a User is ____.
a) 10000 b) 15000 c) 50000 d) 40000
22. The name of one of our software partner in LOS is _________.
a) Infosys b) Techmahindra
c) Mphasis d) Nucleus Software Exports
23. State Bank Pride and State Bank Premium are two variants of ______
a) Business Dr Card b) Power CA c) SBI Freedom d) None
24. What is the maximum amount of cash transactions that can take place per day through a
domestic ATM-cum-Debit Card ?
a) Rs.5,000 b) Rs.15,000 c) Rs.40,000 d) Rs. 50,000
25. The settlement agency for National Financial Switch Network is
a) RBI b) CCIL c) IDRBT d) ASC
26. ATM Cards can be issued to a/an ________ deposit account holder.
a) Minor b) Blind c) Illiterate d) All of these
27. As per RBI directives Customer complaints relating to cash not dispensed through ATM
has to be settled within a period of _______
a) 12 days from the date of transaction
b) 15 days from the date of transaction
c) 7 days from the date of customer complaints
d) 12 days from the date of customer complaints
28. ______ is a technique of fraudulently obtaining private information.
a) Phishing b) SMShing
c) Hacking d) a&b
29. URL address of Internet Banking site is https://www.onlinesbi.com . The letter "S" in the
https denotes ____
a) State Bank b) Static c) Secured d) Simple
30. In Plastic CR/DR cards, the 3-digit CVV stands for ________.
a) Cash Value Verification b) Card Verification Value
c) Customer Vendor Verification d) None of the above
31. Which of the following statement is incorrect in respect of e-TDR/e-STDR in Internet Banking?
a) Minimum tenor for e-TDR/e-STDR is 7 days
b) Senior Citizen interest privilege is available in e-TDR/e-STDR
c) Online premature payment of e-TDR/e-STDR can be made
d) None of these
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32. Hotlisting of ATM cards can't be done through
a) ATM b) OnlineSBI
c) Branch Interface of INB d) Through SMS
33. VIRUS stands for _________.
a) Vital Information Resource Under Seize
b) Various Information Required Under Suspect
c) Valuable Information Resource Under Seize
d) Very Informative Resource Under Suspension
34. SBI's e-Learning (Gyanodaya) Portal is available on internet through URL _______.
a) https://mybanklearning.sbi.co.in b) https://hrms.sbi.co.in/gyanodaya
c) http://sbi.co.in/elearnings d) https://gyanodayasbi.co.in
35. IMPS stands for ______
a) Instant Mobile Payment System
b) Immediate Payment System
c) Instant Money Payment Software
36. The seven digit MMID number is required for transfer of money between accounts of different
banks through _________
a) ATM b) INB c) MBS d) Both b and c
37. Pre-printed kits of Internet Banking are kept in the custody of _________.
a) Branch Manager
b) Systems Administrator
c) Internet Banking Officer
d) Joint custodians of the branch, along with other security forms
38. Maximum load in eZ Pay Card is _______
a) 25000 b) 50000
39. CDC stands for ______.
a) Central Data Center b) Corporate Disk Center
c) Corporate Data Corporation d) Community Data Center
40. Computer Security Day is being observed every year on_________.
a) 31st December b) 30th November
c) 30th September d) 31st March
41. The Security certificate of SBI's internet Banking site is issued by_________.
a) TCS (b) INBSIGN (c) TRUESIGN (d) VERISIGN
141
42. Who is primarily responsible for Physical/Logical security of the desktop as per acceptable
usage policy?
a) Branch Manager/Head of the Department
b) Information Security Deaprtment
c) System Administrator/Official
d) User to whom the desktop is allotted
43. The term Encryption refers to _________.
a) Password Protected
b) Scrambling of the data for security
c) Communication Network
44. The cash at point-of-sales facility is available currently only against ________ cards.
a) Debit Cards b) Credit Cards c) Prepaid Cards d) All of these
45. The catch line of SBI Mobile Banking Service (MBS) is_________.
a) With You All the Way b) Your Mobile Your Bank
c) Banking with Convenience d) Anywhere Banking
46. In which places are the 24 hrs call centres located and are operated by which company?
a) In Bangalore and Chennai - operated by Zanzar
b) In Bangalore, Vadodara , Agra & Kolkata - operated by M/s Mphasis
c) In Bangalore and New Delhi - Operated by Visual Soft
d) None of these
47. The name of Corporate General Ledger (CGL) software is_________.
a) B@ncs24 b) Finacle c) Finance One d) Base24
48. Who looks after and oversees the Information Security Policy Program and provide guidance
to users for adhering to Information Security policy ?
a) CDC, Belapur b) SBIICM
c) Information Security Department d) ITS, Department
49. Validity period of State Bank Gift card is ______ yrs
a) 2 b) 1 c) 3 d) 5
50. The maximum amount that can be withdrawn at POS terminals is fixed at
a) Rs. 2500 per card per day b) Rs. 2000 per card per day
c) Rs. 1500 per card per day d) Rs. 1000 per card per day
51. The min and max limit for SB Virtual Card is _____ & ____
a) 500, 50000 b) 100, 25000 c) 500, 100000 d) 100, 50000
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52. Maximum _______ no of Smart Payout cards are available per account.
a) 2 b) 5 c) 10 d) 3
53. ISP stands for _________.
a) Internet Service Product b) Internet Service Provider
c) Internet Source Product d) Internet Source Power
54. Which is not true for our Smart Payout cards.
a) You can top upfor a minimum of Rs.100 and a maximum of Rs.10000
b) The balance on the card cannot exceed Rs. 10,000 at any point of time.
c) Cumulative re-loads during a month should not exceed ceiling of Rs. 25, 000.
d) None of these
55. In ATM card, what does PIN stand for_________.
a) Personal Identification Number b) Personal Index Number
c) Personal Interface Number d) Personal Interaction Number
56. Award staff employees can now access INB Branch Interface with _____ role.
a) Rule Authoriser-1 b) Rule maker -1 c) Checker only d) Maker only
57. SBI's M-POS is popularly known as _____
a) Ezetap b) Eztrade c) PowerPOS d) E-POS
58. SBI SWAYAM is a facility for _______
a) A/C opening b) PB Printing
c) Funds Trf d) CHQ drop box
59. Bypassing normal authentication in a computer System is called __________.
a) Trap door b) Back door c) Rear door d) Side door
60. Which of the following number may be used for hot listing of the card, in case of a lost
ATM card?
a) 1800112211 b) 18004253800 c) 080-26599990 d) All of these
61. What is spoofing?
a) Sending mail from other source to hide identity
b) Sending mail from legitimate source
c) Sending mail from Service Providers' office to its
d) None of these
62. Automated/User driven PB printer in our bank is available through.......?
a) SSK b) SWAYAM c) a&b d) None of these.
63. Dealers of Industry Majors can send remittances using MBS up to a daily transaction limit
of Rs . ______ to the account of the Industry Majors (IMs)
a) 5 lac b) 10 lac c) 15 lac d) no limit
143
64. VOID pantograph is security feature of _______
a) MBS b) ATM card c) CTS-2010 CHQ d) INB
65. The charges for ATM/ POS transaction technical declines attributable to customer (i.e lack
of balance in account) is Rs. ______ per transaction.
a. 7 b. 22 c. 17 d. 57
66. The Core Banking Solutions (CBS) software in domestic branches is _________
a) Finacle b) B@ncs24 c) Exim Bills d) Finance One
67. Which of the under noted facility is not available under the Limited Transactions Rights of
Retail Internet Banking?
a) Funds transfer within own accounts beyond Rs 5.00 lac
b) Opening of new deposit account under e-TDR/STDR
c) Request for opening new accounts under the same CIF through branch intervention
d) Third Party transfer of fund below Rs 5.00 lac
68. In the New User Driven Registration Process for Internet Banking (URIB), _____ will be
put against the "Internet Banking Kit No.? field in the CBS.
a) PPK no b) Temporary user ID
c) Application reference No d) None of the above
69. SBI has developed the E-KYC platform based on _______ number.
a) PAN b) PASSPORT c) ADHAAR d) EPIC
70. SMS stands for _________
a) Short Messaging Service b) Short Messaging System
c) Simple Messaging Service d) Simple Messaging System
71. National Financial Switch (NFS) the network of other bank ATMs is being maintained
by _____
a) IDRBT b) ASC c) CDC d) RBI
72. The term "White Plastics" refer to _________.
a) Hot Listed Credit Cards b) Stolen Credit Cards
c) Lost Credit Cards d) Counterfeit Credit Cards
73. The daily limit of Cash withdrawal in our Pride and Premium Card is _____ & ____
a) 1.00 lac & 2.00 lac b) 2.00 lac & 3.00 lac
c) 1.50 lac & 2.00 lac d) 0.50 lac & 2.00 lac
74. Immediate Payment Service (IMPS) has been developed by _____
a) Reserve Bank of India (RBI)
b) National Informatics Centre (NIC)
c) National Payment Corporation of India (NPCI)
d) State Bank of India (SBI)
144
75. The facility of Immediate activation of third party and availing full third party transfer
limit of Rs.5 lacs instantly (Instead of a cooling period of 5 days from the normal limit
Rs.50,000/-) for our RINB, is now available at _______ including Branch interface.
a) GCC b) MBS c) ATM d. SSK
76. Public Key and Private Key are related to _______.
a) Locking Arrangement b) Virus
c) Digital Signature d) Worm
77. What do you mean by the term "Convergence" ?
a) bringing together information, communication and entertainment
b) arrangement of loans from different banks for a borrower
c) conversion of foreign currency into domestic currency and vice versa
d) providing different technology enabled services to customers
78. Minimum and maximum service charge applicable for NEFT Transactions is
a) Rs. 2.5 and Rs.100 b) Rs. 2.5 and Rs. 25
c) Rs. 2.5 and Rs. 50 d) Rs. 2.5 and Rs. 250
79. Transaction settlement of Kiosk banking Channel with CBS ___________.
a) Online & Real-time b) Offline
c) T+1 day d) None of these
80. Finance one - Corporate General Ledger (CGL) was purchased from_________.
a) TCS b) INFOSYS
c) China Systems, Dubai d) Comlink, USA
81. CS Exim Bills - Trade Finance Software was purchased from_________.
a) IBSNET b) Comlink,USA
c) China Systems, Taiwan d) INFOSYS
82. A Disaster Recovery site (DRS) has been set up for Core Banking at _________.
a) Mumbai b) Chennai c) Kolkata d) Delhi
83. A Plastic Card implanted with a computer chip is known as :
a) Debit Card b) Credit Card c) Smart Card d) ATM Card
84. The green initiative counter where the customer's transactions can be done by swiping the
card on a device at a SWO's terminal is called _______.
a) Grahak Mitra b) Point of Sale (PoS)
c) Green Channel Counter d) Kiosk Terminal
85. Internet Banking Requests Approval through ATM (IRATA) for our RINB facility is available
for _____ requests.
a. APPROVAL OF THIRD PARTY b. RESET LOG IN PW
c. UNLOCK USER ACCESS d. ALL OF THESE.
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86. Which of the following is not a mode for registration of Mobile Banking services
a) ATM b) Internet Bankng
c) Through GCC counter d) None of these
87. Committee on Computerisation in Banking industry was headed by
a) Dr. Man Mohan Singh b) Dr. C. Rangarajan
c) M.S. Ahluwalia d) Dr. Y.V. Reddy
88. The integration of multiple technologies of a Depository, Participant, Bank, and Stock
Exchange Interface is done through:
a) e-banking b) e-mail c) e-broking d) e-commerce
89. A government authorized Identity proof, wherein the signature of cardholder is present,
may be requested by the merchant to the cardholder, where the PoS transaction amount is
above ________
a) Rs. 25,000 b) Rs. 50,000 c) Rs. 10,000 d) Rs 20,000
90. SBI Tiny Card works on the technology of __________
a) National Financial Cards b) Biometric Function Control
c) Near Field Communication d) Distant Communication
91. ATM cards not delivered within a period of ______ days should be hotlisted through contact
centre.
92. The validity period of State Bank virtual card / E-card " a limit debit card created for
e-commerce transaction" linked to INB is ___________.
a) 24 hrs b) 48 hrs
c) As soon as Transaction d) 48 hrs or Transaction whichever is earlier
93. BCP Plan in case of newly opened branches/units/offices should be drawn and approved
within ____ days from the date of opening.
a) 365 b) 180 c) 15 d. 30
94. Which of the following is not true about Green Remit Card ?
a) Non-Home Cash Deposit Transaction
b) Transaction limit of Rs25,000/- and a monthly cap of Rs.100,000/-
c) Mapped to a particular beneficiary account and contains remitter's credential
d) The card holder must be an account holder of the branch
95. B@NCS24 is expanded to.
a) Bank's CB System for 24 Hrs
b) Bank's Automatic & Networking Core System for 24 Hrs
c) Bank's Automation & Networking Control System for 24 Hrs
d) Up to Business hour
96. Antivirus application architecture should ensure that all systems across are updated
within______.
a) 1 hour b) 6 hours c) once in a week d) 24 hours
146
97. The BCP Plans for existing branches are now required to be reviewed and approved as
on ________ every year.
a) 01st Jan b) 31st Mar c) 30th June d) 31st Dec.
98. The eZ-trade of SBI is linked to _________.
a) INB b) ATM c) MBS d) KIOSK
99. Resultant balance in SB plus SWEEP should always be _______ to threshold balance.
a. MORE b. EQUAL
c. LESS THAN/EQUAL d. MORE THAN/EQUAL
100. SPAM is ________.
a) Confidential papers thrown in the dustbin
b) Electrical spikes that can harm a computer
c) Having a Maker and Checker system for all transactions
d) Unsolicited e-mail
101. The NRI card can be issued by our selected branches at the request of ______
a) Family members /acquaintances of the NRI customer
b) NRI customer only
c) All of the above
102. Cash withdrawal limit from State Bank ATMs in SB NRI card is max Rs. _____ per day.
a) 50000 b) 25000
103. Max no of NRI cards to be issued to an NRI customer is _______
a) 2 b) 5
c) 3 d) As per demand of the NRI depositor
104. Top up of a NRI Family Card can be done for a minimum of Rs. ______ and a maximum of
Rs. ______ at one instance.
a) 1000, 25000 b) 300, 10000
c) 200, 25000 d) 100, 50000
105. The balance on the NRI Family card cannot exceed Rs. ______ at any point of time.
a) 25000 b) 10000 c) 30000 d) 50000
106. The facility of digital life certificate for pensioners is known as _____
a) Jeevanpatra b) Jeevanadhaar
c) Jeevancertificate d) Jeevanpramaan
107. To tap into the business of Money Transfer, our Bank has entered into an agreement with
a) Western Union b) Stanchart
c) ING Vaisya d) Thomas Cook India Ltd
147
108. Maximum limit per transaction under the Money Transfer Service Scheme (MTSS) is
a) USD 1000 b) USD 2000 c) USD 3000 d) USD 2500.
109. The resultant balance in case of SB plus account should be minimum Rs. _______
a) 10000 b) 20000 c) 30000 d) 25000
110. 'Student Plus Advantage Card' will be on the basis of a Fixed Deposit of minimum Rs.___
with our Bank.
a) 10000 b) 20000 c) 30000 d) 5000
111. ________ transactions through the stand-alone GCC model are pass through one(s).
a) Funds Transfer b) Mobile Registration
c) Cash Deposit d) Both a & b
112. Achiever Card for corporates has been revised to Rs. __________
a) 100000 b) 20000 c) 30000 d) 50000
113. The limit of Achiever Card for State Bank Employee has been revised to Rs. _______.
a) 100000 b) 200000 c) 30000 d) 50000
114. __________ ID and Password is used to login into the DBT site.
a) HRMS b) CBS c) ADS d) EMS
115. A new variant of rupee prepaid card, for facilitating cashless payment in a closed user
group environment has been introduced called ____________
a) STATE BANK SMARTCHANGE CARD
b) STATE BANK SMARTCREDIT CARD
c) STATE BANK SMART CARD
d) STATE BANK SMARTRUPEE CARD
116. Xpress Collect Card is a _________
a) DEBIT CARD b) CREDIT CARD
c) CASH DEPOSIT CARD d) None of these
117. Auto issue of RuPay Debit Cards is applicable to _______ accounts only.
a) FI b) CSP c) Minor d) None
118. Fourth line data entry in CBS is a mandatory feature of ________
a) STATE BANK SMARTCHANGE CARD
b) STATE BANK BUSINESS DEBIT CARD
c) STATE BANK SMART CARD
d) STATE BANK SMARTRUPEE CARD
119. State Bank Premium Business debit card has an inbuilt PAI cover of Rs. ______
a) 100000 b) 200000 c) 300000 d) 500000
148
120. Chief Technology Officer of our bank reports to _______
a) CFO b) CDO c) CIO d) CISO
121. Message types used in RTGS is/are ______
a) R41 b) R42 c) BOTH d) NONE
122. Message types used in NEFT is/are ________
a) R41 b) R42 c) BOTH d) NONE
123. In SB Connect, the dedicated leased line connectivity is maintained by ________
a) Dimension Data b) Datacraft c) BSNL d) HCL
124. A file that works as an intermediatory between B@ncs24 and Finance One is called ____
a) Host b) GLIF c) ORACLE d) DOTNet
125. e_Booster' Campaign was aimed towards migration of customers to ______
a) CDM b) ATM c) INB d) MBS
126. SBI Passport is a concept to facilitate ___________
a) Single Sign On to various SBI portals b) E-Passport service
c) INB d) MBS
127. SB Anywhere is available for __________
a) RINB b) CINB Saral c) CINB Vistaar d) All
128. "fxout" is facility for forex outward remittance using __________ platform
a) CBS b) SFMS c) SWIFT d) RTGS
129. ________ currency is/are available for initiating outward remittances in 'fxout' by our
Branches.
a) USD b) GBP c) EURO d) All of these
130. SBI Buddy, our Mobile Wallet is launched in collaboration with _________
a) Accenture b) Mastercard c) Both A&B d) None of these
131. Maximum balance at any point of time in our Mobile Wallet is Rs. ________
a) 10000.00 b) 20000.00 c) 30000.00 d) 50000.00
***
149
KEYS
1. (d) 2. (b) 3. (a) 4. (d) 5. (d) 6. (b) 7. (d) 8. (b) 9. (c) 10. (a)
11. (b) 12. (d) 13. (a) 14. (b) 15. (b) 16. (a) 17. (b) 18. (c) 19. (c) 20. (d)
21. (b) 22. (d) 23. (a) 24. (c) 25. (b) 26. (d) 27. (c) 28. (d) 29. (c) 30. (b)
31. (a) 32. (a) 33. (a) 34. (a) 35. (b) 36. (d) 37. (d) 38. (b) 39. (a) 40. (b)
41. (d) 42. (d) 43. (b) 44. (a) 45. (b) 46. (b) 47. (c) 48. (c) 49. (c) 50. (d)
51. (d) 52. (d) 53. (b) 54. (d) 55. (a) 56. (d) 57. (a) 58. (b) 59. (b) 60. (d)
61. (a) 62. (c) 63. (c) 64. (c) 65. (c) 66. (b) 67. (d) 68. (c) 69. (c) 70. (a)
71. (a) 72. (d) 73. (a) 74. (c) 75. (c) 76. (c) 77. (a) 78. (b) 79. (a) 80. (d)
81. (c) 82. (b) 83. (c) 84. (c) 85. (d) 86. (d) 87. (b) 88. (c) 89. (c) 90. (c)
91. (b) 92. (d) 93. (c) 94. (d) 95. (c) 96. (d) 97. (c) 98. (a) 99. (c) 100. (d)
101. (c) 102. (c) 103. (d) 104. (d) 105. (d) 106. (d) 107. (d) 108. (d) 109. (d) 110. (d)
111. (d) 112. (a) 113. (b) 114. (a) 115. (a) 116. (c) 117. (a) 118. (b) 119. (d) 120. (c)
121. (c) 122. (a) 123. (a) 124. (b) 125. (c) 126. (a) 127. (d) 128. (a) 129. (d) 130. (c)
131. (a)
150
ACRONYMS
1. Automated Teller Machine ATM
2. ATM Switch Centre ASC

3. Banks Automation & Networking Control System for 24 hours B@ncs24
4. Business Continuity Plan BCP
5. Core Banking Solution CBS
6. Centralised Internet Access Regulatory Committee CIARC
7. Corporate Internet Banking CINB
8. Cash Management Product CMP
9. Dedicated Accounting Unit DAU
10. Deferred Net Settlement DNS
11. Domain Name System Server DNS
12. Disaster Recovery Plan DRP
13. Decision Support System DSS
14. Electronic Accounting System in Excise & Service Tax EASIEST
15. Electronic Clearing System ECS
16. Electronic Funds Transfer EFT
17. Executive Information System EIS
18. File Transfer Protocol FTP
19. General Ledger Interface File GLIF
20. Hyper Text Transfer Protocol HTTP
21. Institute for Development & Research in Banking Technology IDRBT
22. Indian Financial System Code (11 Character - Alpha Numeric) IFSC
23. Internet Banking INB
24. Indian Financial Network INFINET
25. Information Security Deptt. ISD
151
CURENT AFFAIRS
1. Which Bank has launched India's first start-up focussed bank branch ?
a) Punjab National Bank b) Canara Bank
c) State Bank of India d) Bank of Baroda
2. Which state has become India's first fully organic state?
a) Tripura b) Sikkim c) Himachal Pradesh d) Haryana
3. Which of the following panels has been set up to study 7th Pay Commission's
recommendations?
a) N K Mittal panel b) M Raghuveer panel
c) P K Sinha panel d) K Kishore panel
4. Which one of the following stock exchanges will get its own postage stamp?
a) Bombay Stock Exchange (BSE) b) National Stock Exchange of India Ltd
c) MCX Stock Exchange d) Bangalore Stock Exchang
5. Who has been appointed as the new chairman of Competition Commission of India (CCI)?
a) DK Sikri b) Amitabh Kant
c) Ashok Chawla d) Dhanendra Kumar
6. Which of the following organisations has extended a 50 million dollar loan for the Nai
Manzil project?
a) World Bank b) International Monetary Fund
c) Asian Development Bank d) United Nations Children's Fund
7. Which of the following countries new Parliament building is built by India?
a) Bhutan b) Afghanistan c) Nepal d) Maldives
8. Which of the following is the first bank to tie up with Indian railways to sell rail tickets through
its website?
a) State Bank of India b) ICICI Bank
c) Axis Bank Ltd d) Punjab National Bank
9. Which of the following companies has launched contactless digital payment wallet -
MoboMoney?
a) Vodafone b) Paytm c) Tech Mahindra d) Airtel
10. On which date, National Good Governance day is observed in India?
a) September 15 b) October 21 c) December 16 d) December 25
11. Which of the following new methods has been introduced by the RBI to calculate Banks'
lending rates to borrowers?
a) OCLR b) MCLR c) IMLR d) PSLR
152
12. On which date, National Consumer Day is observed in India?
a) December 15 b) December 20 c) December 24 d) December 28
13. Which of the following organisations has released the report titled - 'Asian Economic
Integration Report 2015'?
a) ADB b) IMF c) ASEAN d) World Bank
14. Which of the following companies has launched SME Council in India to help small
businesses?
a) Flipkart b) Snapdeal c) Facebook d) Google India
15. Which of the following banks is the first Indian bank to introduce Display Debit cards?
a) HDFC Bank b) Axis Bank
c) ICICI Bank d) State Bank of India
16. Which of the following countries has the world's largest pension fund?
a) China b) United States c) Japan d) India
17. What per cent of FDI is allowed in E-Commerce sector in India?
a) 49% b) 51% c) 75% d) 100%
18. Which of the following foreign borrowings are considered under External Commercial
Borrowings(ECBs) in India?
a) Buyer's credit b) Supplier's credit
c) Bank loans d) All the above
19. In what context, 'Advance Pricing Agreements' are used?
a) Intellectual Property Rights b) Taxation
c) Nuclear co-operation d) Climate change
20. Which banking major is shutting down its private banking operations in India?
a) BNP Paribas b) Deutsche Bank
c) HSBC d) Standard Chartered Bank
21. The Bhavishya online system was launched for what purpose?
a) Online Insurance tracking system b) Online pension tracking system
c) Online MSME registration system d) Online passport tracking system
22. What amount of insurance is provided for Rupay classic card holders?
a) Rs. 50,000/- b) Rs. 75,000/- c) Rs. 1,00,000/- d) Rs 2,00,000/-
23. Which among the following Banks got in-principle approval form RBI for setting up of a
Trade Receivables Discounting System (TReDS)?
a) SBI b) ICICI Bank c) Axis Bank d) HDFC Bank
24. Which organisation(s) got the in-principle approval from RBI to function as the Bharat Bill
Payment Central Unit (BBPCU) in BBPS?
a) Axis Bank b) NPCI c) SBI d) All the above
153
25. For what purpose, a web-based Portal "e-lala" was launched?
a) To eradicate child labour b) To promote rural education
c) To protect small traders d) To promote ancient languages
26. What are masala bonds?
a) Rupee denominated domestic bonds
b) Rupee denominated overseas bonds
c) Dollar denominated overseas bonds
d) Dollar denominated domestic bonds
27. What is the free remittance limit under the Liberalised Remittance Scheme (LRS)?
a) USD 1,50,000 per financial year
b) USD 2,50,000 per financial year
c) USD 3,50,000 per financial year
d) USD 5,00,000 per financial year
28. In which among the following sectors, 100% FDI is allowed under automatic route in India?
a) Duty Free Shops b) Defence c) Banking d) Broadcasting
29. Which among the following Banks has recently launched 'Green PIN' that will allow customers
to generate their PIN at the bank's ATMs?
a) South Indian Bank b) Punjab National Bank
c) State Bank of India d) ICICI Bank
30. Justice R V Easwar committee is related to which field?
a) to simplify Service tax laws, 1969 b) to simplify House loans, 1971
c) to simplify Education norms, 1985 d) to simplify provisions of IT Act, 1961
31. Recently, Sin Tax is in news. It is which type of tax?
a) Customs b) Excise c) VAT d) Service
32. Which of the following Banks is the first Public Sector Bank (PSU) to join Chillr platform?
a) State Bank of India b) Punjab National Bank
c) Vijaya Bank d) Bank of Baroda
33. On 14th October, 2015 which one has become world's fastest stock exchange?
a) Bombay Stock Exchange b) National Stock Exchange
c) Kolkata Stock Exchange d) Bengaluru Stock Exchange
34. Which Bank has registered highest increase in gross Non-Performing Assets (NPAs) in
the 2014-15 financial year?
a) UCO Bank b) PNB c) SBI d) Central Bank
35. Which Bank has launched mVisa mobile payment solution recently?
a) SBI b) ICICI c) HDFC d) Axis
154
36. The Government of India is launching Sugamya Bharat Abhiyan for __?
a) Persons of Old Age b) Persons with Disabilities
c) Visually Impaired Persons d) Widows and abandoned women
37. The mobile banking app "LIME" has been launched by which of the following Banks, recently?
a) Axis Bank b) HDFC Bank c) ICICI Bank d) SBI
38. Which among the following Banks has recently launched "Simply CLICK" card for online
shopping?
a) ICICI b) SBI c) Axis d) HDFC
39. Recently, the Government of India (GoI) approved the Sovereign Gold Bond Scheme. What
is the limit of Gold quantity per person to buy gold bonds?
a) 1000 grams b) 1050 grams c) 500 grams d) 350 grams
40. Which among the following is the correct full form of AMRUT?
a) Atal Mission for Renovation and Urban Technology
b) Atal Mission for Road and Urban Transport
c) Atal Mission for Rejuvenation and Urban Transformation
d) None of them
41. Which among the following is India's highest foreign exchange earning sector?
a) Engineering b) Jewellery c) Petroleum Products d) Tourism
42. Which of the following Banks have been declared by Reserve Bank of India (RBI) as
Domestic Systemically Important Banks (D- SIBs)?
a) HDFC and ICICI b) ICICI and SBI c) SBI and HDFC d) PNB and SBI
43. The Government of India (GOI) has launched which scheme for online release of new LPG
connections?
a) Sulabh b) Saral c) Smile d) Sahaj
44. Which open source web based tool has been launched by NITI Aayog, recently?
a) IESS 2022 b) IESS 2019 c) IESS 2036 d) IESS 2047
45. Which panel was recently making news for its recommendations regarding Minimum
Alternate Tax (MAT)?
a) AP Shah Panel b) V V Daga Panel
c) HR Khan Panel d) Ajay Shankar Panel
46. Which women's safety app has been launched by Indian Railways, recently?
a) R-Sahayak b) R-Jagruk c) R-Mitra d) R-Sahyog
47. The Government of India (GoI) has recently launched a new health initiative "SEHAT".
What does "SEHAT" stand for?
a) Social Enactment for Health And Telemedicine
b) Social Enabler for Health And Telemedicine
c) Social Enactor for Health And Telemedicine
d) Social Endeavour for Health And Telemedicine
155
48. For what purpose, a web-based Portal "Vidya Lakshmi" has been launched by the Union
Government?
a) Direct subsidy for farmers b) Women Empowerment
c) Medical loans d) Educational Loans
49. Recently, the Union Finance Ministry launched India Aspiration Fund (IAF) to boost start-
ups in India. Who will be the partner and co-investor in the IAF?
a) LIC b) SIDBI c) NABARD d) RBI
50. Which of the following Banks recently launched "Smart Vault" digital locker facility?
a) SBI b) HDFC c) ICICI d) PNB
51. The mobile wallet app "Buddy" has been launched by which Bank recently?
a) PNB b) ICICI c) HDFC d) SBI
52. The campaign "Start-up India, Stand up India" is associated with which field?
a) Food Industry b) Women Empowerment
c) Swacch Bharat Mission d) Entrepreneurship
53. Which Bank has recently launched its 'Saral-Rural Housing Loan' at base rate of 9.70 %
for borrowers from the rural areas?
a) HDFC b) SBI c) ICICI d) AXIS
54. Which of the following Banks has launched 'Dhanchayat', an educational film to raise
awareness on the dangers of borrowing money from unorganised sources?
a) SBI b) ICICI c) HDFC Bank d) Axis Bank
55. Reliance Industries Limited has made a collaboration to apply for a payments Bank license
that can offer services such as remittances and deposits with wich of the following banks?
56. Which of the following Banks has recently announced the lunch of banking services on
Twitter, the first of its kind service, in India?
57. Which of the following Banks has recently lunched India's first digital bank 'Pockets' to
allow anyone to instantly make transcations on a mobile phone with or without bank account?
58. What will be the new name of the scheme JNNURM?
a) SVMRUT b) MGMRUT c) AMRUT d) SBMRUT
59. Portfolio Management Services (PMS) offered by Banks to their customers are subject to
regualtion by ________
a) RBI b) SEBI c) PFRD d) FMC
60. Which of the following scheme has recently become the largest cash transfer scheme in
the world ?
a) SSA b) Pahal c) PMJJY d) Berojgarri Bhatta
156
61. Which of the following Banks has recently lunched Rupay Platinum Debit card in assocation
with National Payment Corporation of India ?
a) SBI b) ICICI c) BOI d) Yes Bank
62. Which of the following Banks has launched near-field communications enabled payment
service "Tap-n-Pay" ?
a) SBI b) ICICI c) BOB d) Axis Bank
63. Indian Army has signed an MoU with which of the following banks on Defence Salary
Package (DSP) ?
a) SBI b) Bank of India c) HDFC Bank d) Yes Bank
64. RBI has allowed Tap and Pay without PIN for transcations up to how munch rupees?
a) 1000 b) 1500 c) 2000 d) 3000
65. State Bank of India has lunched contact less credit and debit card called sbiINTOUCH.
which of the following statement/s is/are true regarding this?
1. These cards are based upon the latest near field technology.
2. With these cards, a customer can transcat by just tapping or waving it aganist the
reader of the point of sale machine.
3. These cards are especially targeted towards fast-food outlets, coffee shops and
supermarkets where the customer make quick transcation.
a) 1&2 b) 2 &3 c) 1 &3 d) All
66. The Holiday for the Banks are declared as per ______
a) RBI Act b) NI Act c) BR Act d) Companies Act
67. RRBs are regulated by ________
a) RBI b) NABARD c) SBI d) State Govt
68. Which of the following is the oldest stock exchange of Asia ? It completed 140 years of
operations.
a) BSE b) NSE
c) Nikkei d) Shanghai Stock Exchange
69. The project Tatkal initiative to provide doorstep loan services has been launched by
a) HDFC b) SBI c) ICICI d) AXIS
70. The interest payable on savings bank account is
a) Regulated by the RBI b) Not regulated by RBI
c) Regulated by Central Govt. d) Regualted by SEBI
71. As per the prevaling practices in the Banks in India, the interest rate on saving bank accounts
is now calcualted on
a) Minimum balance from 5th to last day of the month.
b) Maximum Balance during the month.
c) Daily closing balance basis.
d) Average balace in half yearly basis.
157
72. The Govt will infuse what amount in the public sector banks over a period of four years, as
announced by the Finance Ministry ?
a) 25,000 cr b) 50,000 cr c) 70,000 cr d) 75,000 cr
73. The Liquid Adjustment Facility is a facility extended by the RBI to the scheduled commercial
banks exculding
a) RRBS b) Pvt Bank
c) Nationalised Bank d) None
74. 'Apaka Bhala, Sabki Bhalai ' is the punch line of which Bank.
a) IDFC b) Bandhan c) SBI-HRMS d) RELIANCE
75. ________ has launched a credit specially for online shopping and has announced a strategic
partnership with seven of India's biggest e-commerce players for the card.
a) ICICI b) HDFC c) SBI d) AXIS
76. The latest private bank in India, which started its operations on 1st Oct is.
a) Bandhan b) IDFC
c) India Post d) Aditya Biral Navo
77. What is the paid up capital requirement of both payments bank and small banks ?
a) 100 cr b) 200 cr c) 300 cr d) 500 cr
78. Banks are offering payment solutions which do not require swiping credit/ debit card and
is completed by scanning a QR Code. Here, the term QR stands for
a) Quick Request b) Quick Respone c) Quick Return d) Quick Receipt
79. Moving towards creating a holding company structure for PSBs, the Govt announced the
setting up of the BBB which will recommend appointment of directors in PSBs. the term
BBB stands for
a) Banks Board Bureau b) Banks Base Bureau
c) Banks Balancing Bureau d) Banks Basal Bureau
80. Which of the following became the first Indian company to recevie an in-principle board
approval to raise masala bond recently ?
a) HDFC b) IDBI Capital c) Tata Capital d) Baja Finserv
81. What is RBI's projection on Indian GDP growth rate for 2016
a) 7.6% b) 8.2% c) 7.3% d) 7.1%
82. RBI has developed which core banking solution for consolidating and settlement of accounts
under GST.
a) e-Dhana b) e-Laxmi c) e-Kuber d) e-Talim
83. Which PSU Bank is in the scanner for the money laundering to Hong Kong ?
a) IOB b) BOB c) BOI d) UCO
84. Who among the following has won the 2015 Nobel prize in Economics ?
a) Angus Deaton b) Alvin Roth
c) Lioyd Shapley d) Oliver Williamson
158
85. Who among the following has won the 2015 Nobel prize in Literature ?
a) Peter A Diamond b) Alexievich c) Christopher A d) Monivong
86. Which of the following currency has been added to the IMF's SDR currency basket, recently?
a) Indian Rupee b) Australian Dollar
c) Renminbi d) Swiss Franc
87. Which Bank has signed an agreement with Mudra Bank for refinancing of loans given to
small enterprises recently?
a) ICICI b) Axis Bank c) SBI d) IDBI
88. NRI can invest in which scheme ?
a) NPS b) PPF c) APY d) SCSC
89. Who is the Chairman of the 10 member panel constitued by the GOI for review of the
Income Tax Act ?
a) Soli Sorabjee b) V.R.krishna Iyer c) T.N.Seshan d) R.V.Easwer
90. The RBI imposed Rs 1 cr penalty on which of the following private sector banks for violation
of KYC and AML norms recently.
a) Fedral Bank b) Dhanlaxmi Bank
c) Induslnd Bank d) Kotak Mahindra Bank
***
ANSWER TO CURENT AFFAIRS
1. (c) 2. (b) 3. (c) 4. (a) 5. (a) 6. (a) 7. (b) 8. (b) 9. (c) 10. (b)
11. (b) 12. (c) 13. (a) 14. (c) 15. (a) 16. (c) 17. (d) 18. (d) 19. (b) 20. (c)
21. (b) 22. (c) 23. (c) 24. (b) 25. (c) 26. (a) 27. (b) 28. (a) 29. (a) 30. (b)
31. (b) 32. (b) 33. (a) 34. (a) 35. (b) 36. (b) 37. (a) 38. (b) 39. (c) 40. (c)
41. (a) 42. (b) 43. (d) 44. (d) 45. (a) 46. (c) 47. (d) 48. (d) 49. (a) 50. (c)
51. (b) 52. (d) 53. (c) 54. (c) 55. (a) 56. (b) 57. (b) 58. (c) 59. (a) 60. (b)
61. (a) 62. (b) 63. (b) 64. (c) 65. (d) 66. (c) 67. (b) 68. (a) 69. (b) 70. (b)
71. (c) 72. (c) 73. (a) 74. (b) 75. (c) 76. (b) 77. (a) 78. (b) 79. (a) 80. (b)
81. (a) 82. (c) 83. (b) 84. (a) 85. (b) 86. (c) 87. (d) 88. (a) 89. (d) 90. (b)
159
INTERNATIONAL BANKING
1. _________has been added in the UCPDC 600, under Force Majeure clause (Article 36).
a) War b) Tsunami c) Acts of Terrorism d) Robbery
2. NRI deposit rates are linked with __________
a) Card rate b) Spot rate c) LIBOR d) On-line rate
3. What is the maximum limit per day for transfer of USD funds for transfer to India for opening
of FCNR deposits by SBI Express US FCNR Rapid Remittance Scheme ?
a) USD 20000 Per Day b) USD 25000 Per Day
c) USD 50000 Per Day d) USD 100000 PER Day
4. Which of the following is incorrect w.r.t loans and advances to NRIs against their NRE/
NRO/FCNR(B) deposits.
a) The loan will not be made available to any third party either in India or abroad on the
security of such deposits.
b) The facility of premature withdrawal of NRE/FCNR deposits shall not be available
where loans against such deposits are to be availed of.
c) Interest will be applied at monthly intervals in both Rupee and Foreign Currency Loan
d) Loan can be granted for re?lending or carrying out agricultural/ plantation activities
or for investment in real estate business
5. What is the minimum and maximum amount that can be remitted under SBI express US
Rapid Remittance scheme per day?
a) USD 50 and 5000 b) USD 1000, 100000
c) USD 100, 5000 d) USD 2000, 50000
6. ______Is the product meant for NRIs residing in USA to send remittances to friends and
relatives in India.
a) SWIFT b) Global Remittance
c) NRI Remittance d) SBI Express US Rapid Remittance
7. What is the charge per remittance sent through SBI Express US FCNR Rapid Remittance.
a) USD 5 b) USD 10
c) Free of Cost
d) To be recovered from the Payee account in INR
8. As per priority sector lending guidelines export credit should constitute what percentage
of the total advance of a domestic commercial bank?
a) 16% b) 11 %
c) 4%
d) Export credit is not a priority sector lending
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9. As per instructions issued by RBI, remittances against imports should be completed not
later than _________ months from the date of shipment.
a) 6 months b) 1 year c) 2 years d) 3 months
10. As per regulations of FEMA Person of Indian Origin (PIO) is a person who is a citizen of
any country other than Pakistan and Bangladesh.
a) He/She at any time held Indian Passport
b) He/She or either of his/her parents/grand parents were citizens of India.
c) He/She is a spouse of an Indian Citizen.
11. The maxim applied in respect of direct quotation is
a) Buy Low, Sell Low b) Buy Low, Sell High
c) Buy High, Sell Low d) Buy High, Sell High
12. What is the cap for loan against NRE/FCNRB deposits either to depositors or to third
parties?
a) Rs. 20 lacs b) Rs.10 lacs c) Rs.1 crore d) No limit
13. RBI recently deregulated the interest rate of which of the following deposit schemes?
a) NRE term deposits b) FCNR (B) term deposits
c) RFC deposits d) NRO term deposits
14. Loan against FCNR(B) term deposits can be extended in :
a) Rupee loans are only permitted.
b) Foreign currency loans are only permitted.
c) Either rupee or foreign currency loans (USD, GBP, EURO) are permitted.
d) None of the above.
15. Credit reports on overseas suppliers on account of import bills directly received by importer
is no longer required to be obtained by authorized dealer in cases where import bills does
not exceed USD _________
a) 1 Million b) 5 Million c) 1,00,000 d) Not limit
16. Where the export consignment is transferred/sold out to another buyer other than the
original buyer, RBI's approval for reduction in the invoice value up to ___ % is not required)
a) 10 b) 25
c) 5 d) Required in all cases
17. In case of export proceeds realization ADs may allow reduction upto % of Invoice value
subject to certain conditions.
a) 5 b) 10 c) 100 d) 25
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18. Which is the apex body for refinancing of pre and post shipment Export credit extended
by commercial banks?
a) RBI b) IDBI c) EXIM BANK d) FEDAI
19. What is the minimum amount for which a Vishwa Yatra Foreign Travel Card can be issued
in USD?
a) 500 b) 1000 c) 5000 d) 10000
20. What is the minimum amount for which FCNB deposits can be issued in USD,GBP or EUR ?
a) 500 b) 100 c) 1500 d) 1000
21. FCNR(B) deposit accounts are opened as_________.
a) SB,CA,TDR & STDRs b) TDRs & STDRs
c) Only SB d) Non of the above
22. Nostro account means ___________.
a) Your account with us b) Our account with them
c) Their account with you d) Your account with them
23. PCFC can continue up to a maximum period of ___________
24. A Bill of Lading is __________________
a) Title to the goods b) A receipt for the goods
c) Evidence of a contract of carriage d) All of these
25. All the exporters have to submit the GR/PP/SDF/SOFTEX forms to authorized dealer in
respect of exports of value____________and above.
a) Rs.25000 b) Rs.100,000 c) USD 25000 d) USD 100,000
26. AD can permit Public Sector Company to remit FOREX as advance payment for import
without insisting on a bank guarantee upto__________
a) USD 15000 b) USD 25000 c) USD 100000 d) Any amount
27. For issue of Foreign Currency Travelers cheques, the rate applied is
a) TC selling rate b) TC buying rate c) TT buying rate d) TT selling rate
28. Which one of the following rate is to be quoted for low-value transactions below Rs.10.00 lacs?
a) Forward Rate b) Special Rate c) On-line Rate d) Card Rate
29. Which one of the following rate is to be quoted for all high-value transactions of Rs. 10 lacs
and above?
a) Forward Rate b) Ready Rate c) Card Rate d) On-line Rate
30. What is the minimum balance to be maintained for a NRE/NRO account if the account is
maintained at a PBB situated at urban/metro centre?
a) Rs. 1000 b) Rs. 50000 c) Rs. 10000 d) Rs. 100000
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31. What is the minimum balance to be maintained for a NRE/NRO account if the account is
maiintained at other than PBB branch?
a) Rs. 1000 b) Rs. 50000 c) Rs. 10000 d) Rs. 100000
32. At the time of encashment of FC Note / FC TCs bankers should insist upon
a) Passport b) Source of funds
c) Identification of the person d) All of the above
33. The minimum amount that can be sanctioned under FCNR loan scheme is _________
a) USD 1 million b) USD 0.5 million
c) USD 50000 d) No minimum amount
34. A swap transaction involves _________.
a) Purchase of Currency
b) Sale of Currency
c) Purchase of currency against sale or forward sale of the currency
d) Simultaneous purchase and sale of one currency against another for different
settlement dates.
35. Unspent foreign exchange brought back to India by a resident individual should be surrendered
to an Authorised Person within ______ days from the date of return of the traveller
a) 90 b) 120 c) 150 d) 180
36. Forfaiting means ___________
a) Export bills discounting without recourse b) Retirement of Import bills
c) Crystallisation of bills d) None of the above
37. What is the limit up to which branches may accept payment in cash against the sale of
foreign exchange for travel abroad (for private visit or for any other purpose)?
a) Below Rs 20000 b) No Cash transaction
c) Under Rs.100000 d) Below Rs.50000
38. Crystallisation means ____________
a) retirement of an import bill
b) conversion of FC liability into Rupee liability
c) conversion of Rupee liability into FC liability
d) all of these
39. As per instructions issued by the bank regarding operations in NRI accounts, which of
the following is correct:
a) Operation in NRI account is permitted through Letter of Authority.
b) Operation in NRI account is permitted through Power of Attorney.
c) Operation in NRI account is permitted through either Letter of Authority or Power of Attorney.
d) Operation in NRI account is permitted through Power of Attorney only.
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40. Under the Liberalised Remittance Scheme of RBI, Authorised Dealers may freely allow
remittances by resident individuals up to __________ per financial year (April-March)
for any permitted current or capital account transactions or a combination of both.
a) USD 150000 b) USD 200000 c) USD 2,50,000 d) USD 1,00,000
41. Under the Liberalised Remittance Scheme of RBI any resident individual may remit up-to
USD_______ in one financial year as gift to a person residing outside India.gifting
purposes, both the individuals i.e. remitter and recipient (NRI) should beclose relatives
as defined in the Companies Act 2013
a) USD 150000 b) USD 200000 c) USD 2,50,000 d) USD 1,00,000
42. Authorised Dealers are allowed upto ___________ for advance remittance for import of
services into India without insisting on foreign bank guarantee.
a) USD 500,000 b) USD 200,000 c) USD 100,000 d) USD 50,000
43. EEFC accounts are maintained with
a) Foreign Dept. b) Foreign Banks
c) Domestic branches of Banks d) All of the above
44. The term "SOFTEX form" relates to
a) Software for export transactions
b) Software for handling import transactions
c) Declaration form for software export in non-physical form.
d) Declaration form for software imports
45. Overdue interest is chargeable on an export bill from _________
a) 31st day after due date b) 181st day after shipment
c) 3rd day after the due date d) Day after the due date
46. ISBP stands for _________
a) International Standard Best Practices b) Indian Standard Bureau Products.
c) International Standard Banking Practices d) Institute of State Bank of Patiala
47. What does BRC stand for?
a) Bills Rediscounted Credit b) Bill Realisation certificate
c) Bills Restructured Certificate d) Bank Realisation Certificate
48. In forex transactions, a Bill of entry in Indian context is _________
a) evidence of import of goods into India issued by customs
b) a form to be filled by importers with RBI
c) a form issued by authorised dealer to enable importer to clear the goods
d) a form issued by FEDAI
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49. Authorised dealers are normally required to preserve Exchange Control copies of Bills of
Entry/ Postal wrappers received from importers, for a period of _________
a) 6 months b) 1 year c) 18 months d) 18 months
50. Loro account means _________
a) Your account with us b) Our account with you
c) Their account with you d) Our account with them
51. Under a CFR contract, the insurance charges are to be borne by :
a) Exporter b) Importer
c) to be shared between (a) & (b) d) none of the above
52. If a letter of credit is advised by the Bank, it is responsible for _________
a) Financial standing of the issuing bank b) Financial standing of the applicant
c) Payment of the LC amount d) Genuineness of the LC
53. What is the purpose of opening Resident Foreign Currency (RFC)account?
a) To facilitate resident Indians park their fund in Foreign Currency denominated deposits
b) To facilitate NRIs park their fund in Foreign Currency denominated deposits
c) To facilitate NRIs, who are returning to India for permanent settlement park their funds
in foreign currency
54. Maximum amount of foreign currency that can be released for travel to Iraq is
a) USD 500 b) USD 1000 c) USD 3000 d) USD5000
55. Crystallisation of import bill is to be done on the _____th day from the date of receipt of bill
under LC
a) 30 b) 20 c) 10 d) 15
56. For education abroad, ADs can release foreign exchange upto USD ________
a) 50000 b) 100000 c) 200000 d) 250000
57. What is the period upto which authorised dealers are required to preserve Form A2 along
with other related documents?
58. Authorised dealers may accept cash for amounts not exceeding Rs. ________ for sale of
foreign exchange for travel abroad.
a) Rs. 50,000 b) Rs. 100,000 c) Rs. 500000 d) Rs. 1,50,000
59. INCOTERMS stands for _________
a) Commercial Certification terms b) International Commercial Terms
c) International Companies Terms d) None of the above
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60. Formulation of Foreign Trade Policy is done by _________
a) Ministry of Commerce b) DGFT
c) Ministry of Finance d) RBI
61. When forward rates are at a discount, they are more advantageous to the _________
a) Importer b) Exporter
62. Under option contracts, currency option gives buyer the _________ a specific quantity of
currency at an agreed rate on before a particular date.
a) Right to buy or sale b) Obligation to buy or sale
63. The term beneficiary in a letter of credit refers to _________
a) Importer-buyer b) Exporter -seller
c) The bank which negotiates the bill d) None of the above
64. Forward rate means _________
a) Rate agreed today for a future date b) Rate contracted on a future date
c) Tom Rate d) All of the above
65. Who gives AD licence ?
a) RBI b) FD
c) Corporate Centre d) None of these
66. IEC stands for _________
a) Importer-Exporter Code Number b) Importer Exporter Control Number
c) Indian Export Control d) None of these
67. IEC number is alloted by _________
a) RBI b) DGFT
c) Ministry of Finance d) Ministry of Commerce
68. FEMA stands for _________
a) Foreign Exchange Management Act b) Funded Exchange Management Act
c) Fund Excess Monitoring Act d) None of the above
69. What is the amount of Foreign Exchange Authorised dealers are permitted to remit on
behalf of a resident indian for medical expenses abroad?
a) USD 75000 b) USD 100000 c) USD 1,25000 d) USD 250000
70. SDF stands for _________
a) Self Declaration Form b) Salary Declaration form
c) Statutory Declaration Form d) Statutory Drawing Facility
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71. Nostro Account means _________
a) Your account with us b) Our account with you
c) Their account with you d) NRI account
72. UCPDC stands for _________
a) Uniform Customs and Practices for Debits and Credits
b) Uniform Customs and Practice for Documentary Credits
c) Unified Credit Procedure for Developed Countries
d) United Credit Programme for Developed Countries
73. Which version of UCPDC is presently in force?
a) UCPDC 6000 b) UCPDC 500 c) UCPDC 5000 d) UCPDC 600
74. EPC stands for _________
a) Export Product Council b) Export Packing Credit
c) Export Product Credit d) Export Promotion Credit
75. PCFC stands for _________
a) Pre-Shipment Credit in Foreign Currency
b) Post Shipment Control of Foreign Currency
c) Post-shipment Credit in Foreign Currency
76. GLS stands for_________
a) Global Language System b) Global Link Service
c) Global Link System d) Global Lock section
77. EBRS stands for _________
a) Export Bill Return System b) Export Bill Rediscounting Scheme
c) Export Bill Return Scheme d) All of the above
78. Balances in NRE Deposit accounts are repatriable upto
a) Only Principal amount b) Only Interest amount
c) Both Principal and Interest d) Not repatriable
79. NRO account holder may remit/repatriate an amount up to per financial year out of the
balance held in his Non Resident (Ordinary) Rupees Account.
a) USD 1,00,000 b) USD 1,000,000 c) Rs.1,00,000 d) Rs.10,00,000
80. RBI has permitted Banks to allow foreign Tourists, who are on short visit, to open NRO
accounts in India. These accounts are allowed to be operated for a maximum period of
_________ months
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81. Which category of Authorized branches can maintain Nostro a/cs ?
a) A category b) B category c) C category d) All of these
82. B category branches can handle _________
a) Trade related transactions b) Service related transactions
c) NRI accounts d) All of these
83. Under FCNRB loan Scheme, loans are extended to _________
a) NRI customers
b) Persons having FCNRB deposits
c) Corporate requiring Foreign currency/ Rupee funding
d) All of these
84. As per recent instructions issued by RBI regarding operations in NRO account which of
the statement is _______ correct.
a) Transfer of funds from one NRO account to another NRO account is not allowed.
b) Transfer of funds from one NRO account to another NRO account is not allowed.
However, payment of legitimate dues in India of the account holder is permitted to be
transferred.
c) Transfer between two NRO accounts maintained by the same person would be
allowed.
d) None of the above is correct
85. The cover operation of all forex transaction s are done by _________
a) Corporate Centre b) Foreign Department, Kolkata
c) Treasury management Group, Mumbai d) None of these above
86. Which of the following is not an export declaration form?
a) GR/SDF b) VP/ COD c) BEF d) SOFTEX
87. For professional like doctors, chartered accountants providing services abroad, how much
of inward remittances can be credited to EEFC account?
a) 100% b) 75% c) 50% d) Can't be credited
88. UCP 600 is applicable w.e.f________.
a) 01.07.2007 b) 01.01.2007 c) 01.07.2005 d) 01.01.2005
89. FEDAI stands for :-
a) Foreign Exchange Dealer's Act of India
b) Foreign Exchange Dealers' Association of India
c) Foreign Exchange Development Authority of India
90. Foreign Nationals on their temporary visits to India are allowed to open the following accounts
a) NRO SB & CA b) NRE SB & CA
c) Any NRO accounts d) Not allowed
168
91. From 1st April 2012 onwards R return is compiled by: -
a) Global Market Unit, Kolkata
b) All A and B category forex handling branches
c) Treasury Management Group
d) Not submitted at all
92. Customers with which of the resident status are allowed to open RFC accounts?
a) RNOR (resident but not ordinarily resident)
b) ROR (resident and ordinarily resident)
c) RI (resident Indian)
d) All of the above
93. Which of the following is a pre shipment export credit , which is disbursed in indian rupees?
a) PCFC b) EBR c) EPC d) EBD
94. Which of the following is a post shipment export credit , which is disbursed in indian rupees?
a) PCFC b) EBR c) EPC d) Trade credit
95. ADs can now allow remittances for employment abroad or for emigration purposes up to
a limit of ______.
a) USD25000 b) USD10000 c) USD50000 d) USD250000
96. Under Liberalized Remittance Scheme (LRS) in a Financial Year a minor can remit
up to ____
a) USD 50,000 b) USD 1,00,000 c) USD 250,000 d) Minor cannot remit
97. For violation of FEMA, prosecution is done by _________
a) RBI b) DGFT
c) FEDAI d) Enforcement Directorate
98. Recently Bank has allowed branches to issue Bank Guarantees without transferability/
assignment clause, where _________ is the beneficiary.
a) MNC
b) Reputed corporates
c) PSUs/ Government Undertakings/ Government Departments
99. In case of revocation of the Bank Guarantee by the beneficiary, the Bank should
a) Bank should refer it to the customer and on acceptance should pay the beneficiary
b) Bank should refer to the customer only if sufficient balance is not available in the
account of the applicant
c) Conduct an enquiry on the fact and figures about the default by the applicant
d) Pay to the Beneficiary immediately on receipt of written demand without waiting for
any response or confirmation from the applicant
169
100. Which of the following statements is true in respect of definition of NRI?
a) Period of stay in India in the previous year should not exceed 182 days as per IT Rules
b) Period of stay in India in the previous FY should not exceed 182 days as per FEMA
c) Period of stay abroad in the previous AY should not exceed 181 days as per IT Rules
101. Which of the following accounts of NRIs is taxable in India?
a) NRE b) NRO c) FCNR(B) d) RFC
102. Foreign Currency loans extended/arranged by banks to importers for retirement of Import
Bills, upto repayment period 1year in case of raw materials and 3 years in case of capital
goods is called
a) FCNR Loans b) Commercial Borrowings
c) Trade credits d) None of these
103. External Commercial Borrowings (ECB) means :
a) Borrowings by Govt. from IMF
b) Borrowings by Govt. from World Bank
c) Borrowings by Corporate from MNCs
d) Borrowings by Corporate & FIs from International market.
104. Which of the following is not an objective of Nostro reconciliation?
a) Improving FD's profitability
b) Detecting and recovering double payments or double debits
c) Recovering charges levied by correspondents
d) Minimizing provision against unmatched debits as per RBI directives
105. In order to ensure uniformity and transparency in interest rates on NRE / FCNR (B)
deposit,____________ publishes the LIBOR / SWAP rates to be used by banks in arriving
at the interest rates on NRI deposits.
a) RBI b) EXIM BANK
c) FEDAI d) Golbal Market Unit
106. FERA has been replaced by FEMA w. e. f
a) 01.01.2000 b) 01.04.2000 c) 01.06.2000 d) 01.07.2000
107. If FCNR(B) A/c is closed before a minimum period of 1 year _________
a) Interest will be paid for period of run at domestic rate only
b) Interest will be paid for the actual period run at contractual rate without penalty
c) Interest will be paid for the actual period the deposit has run at contractual rate
with penalty
d) No interest is payable
170
108. Non Resident Ordinary (NRO) and NRE accounts are maintained in which currency?
a) INR b) USD only
c) USD,GBP,EURO d) All foreign currencies
109. Indian students studying abroad are treated as NRIs. What are the forex remittance facilities
available to them?
a) USD 250000 per academic year from close relatives in India
b) USD 10,00,000 per financial year from their NRO balance
c) Both a & b
d) Either a or b
110. Exchange risk in respect of FCNR (B) accounts is now borne by _________
a) RBI b) Concerned Bank c) Central Govt d) None
111. Investment in which of the followings are prohibited for all classes of persons resident
outside India?
a) Investment in Immovable properties
b) Portfolio Investment
c) Investment in Agl. Properties/ plantation Crop/ farm house
d) Investment by way of FDI /FII
112. SBI's interest rates in dollar deposits under FCNRB scheme are linked to
a) Bank rate b) Repo rate
c) LIBOR/SWAP rates d) None
113. For conducting Forex business our branches are categorized into ______ categories.
a) 2 b) 3 c) 4 d) 5
114. Which of the followings are correct about FC-SEZ Account?
a) It is a Current Account
b) It is identical to EEFC scheme
c) It can be opened in USD, GBP, EURO and JPY
d) Units in SEZ can credit all its receipts up to 100% into FC-SEZ A/C
e) All of the above
115. What is the time limit for realization of export bills for SEZ?
a) No time limit b) 6 months c) 9 months d) 12 months
116. Which category of Forex branches are authorised to undertake and report sale and
purchase Forex transanctions?
a) A &B only b) A,B &C1 c) A,B & C2 d) A,B, C1 &C2
117. For remittance arising out of handling Import Bills, which rate will be used?
a) TT Selling b) Bill selling c) TC selling d) CN Selling
171
118. In case of Inward remittance,when our NOSTRO a/c has already been credited, which rate
will be applicable?
a) TT Buying b) Bill Buying c) DD Buying d) TC Buying
119. For negotiation of export bills, which rate will be applicable?
120. For purchase of DDs drawn on us, which rate will be applicable?
121. As per recent instructions issued by FEDAI, if the date of expiary of an option contract falls
on "suddenly declared holiday", the new expiary date should be :
a) Pre-poned to the previous working day.
b) Should be fixed as per understanding of the parties involved
c) Should be post-poned to the next working day
d) Should be referred to FEDAI
122. ADs can release forex up to a maximum of USD ______ for business visit.
a) 10000 b) 15000 c) 20000 d) 25000
123. Up to which amount ADs can issue forex for the purpose of gifts to relatives abroad?
a) USD 5000 b) USD 10000 c) USD 15000 d) 25000
124. With liberalization of Capital Account transactions resident Indians are prohibited to invest
in which of the following without prior approval of RBI
a) Investment in Equity/ Debt instruments
b) Investment in a foreign entity engaged in a real estate business
c) Portfolio Investment
d) Investment in Mutual Funds
125. What is the time limit for realization of exports proceeds by status holders?
a) 6 months from shipment b) No time limit
c) 9 month from shipment d) 12 month from shipment
126. Packing credit advance is generally allowed on the strength of
a) Securities offered by the borrower
b) LC/Confirmed Order
c) Borrowers average exports for the past three years
d) None of these
127. Which rates are to be applied for all transactions done through the Vishwa Yatra Foreign
Travel Card (FTC)?
a) Bill selling / buying rate b) TT selling / buying rate
c) FCN rate d) None of the above
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128. Call option is
a) Right to Sell b) Right to buy without obligation
c) Right to Buy d) No obligation to Sell
129. The exporter has to give an undertaking to realize the proceeds within ____ from the date
of shipment.
a) 3 months b) 6 months c) 9 months d) 1 year
130. In which Form, exporter has to declare the exports?
a) A1 b) A2 c) GR d) A3
131. The exporters are exempted from submitting declaration in GR form if the value of exports
do not exceed USD _______ or its equivalent.
a) 10000 b) 15000 c) 20000 d) 25000
132. The exporter has to submit the duplicate copy of GR along with necessary documents to
ADs within ____ days from the date of shipment.
a) 7 b) 14 c) 21 d) 28
133. If the export bill is not realized within 30 days from the expiry of transit period or 30 days
from the expiry of due date, it should be crystallized at _____ rate.
a) Bill buying b) TT selling c) Bill buying d) TC selling
134. What are the rights and obligation of the confirming Bank as per UCPDC?
a) Confirming bank is irrevocably bound to honour or negotiate as of the time it adds its
confirmation to the credit
b) A confirming bank undertakes to reimburse another nominated bank that has
honoured or negotiated a complying presentation and forwarded the documents to
the confirming bank
c) On receipt of request from the issuing bank to confirm a credit if the Bank is not
prepared to do so, it must inform the issuing bank without delay and may advise the
credit without confirmation
135. For AD category - I, banks are required to furnish to RBI on half yearly basis details of
unrealised overdue export bills giving details of all export bills outstanding. Name of the
return to be submitted is
a) GR b) XOS c) SOFTEX d) PP
136. Which of the following transactions is not permitted to a Power of Attorney holder of an NRI ?
a) Making local payments b) Making gifts to third paries
c) Making remittances to NRI depositor d) Making investment on behalf of NRI
137. EEFC Account is opened to facilitate
a) Exporters in 100% EOUs can credit 100% forex earnings to EEFC account
b) To facilitate exporters to accumulate forein currency from the exports proceeds,
which can be utilised in case of any obligation towards imports
c) This account can be opened in Current Account only
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138. Documents under L.C should be scrutinised as per terms of the L.C and any discrepancies
are to be reported to the negotiating Bank within a time not exceeding_________.
a) 7 days b) 15 days c) 5 banking days d) 30 days
139. Up to what limit resident individuals/ firms/companies can book forward contracts against
their anticipated inward or outward remittances on the basis of simple declaration?
a) USD 100000 b) USD 1,50,000 c) USD2,00,000 d) USD 2,50,000
140. Pre-shipment credit in Foreign Currency (PCFC) is linked to ______ interest rate.
a) SBAR b) MIBOR c) LIBOR d) BR
141. PCFC is available by way of _________.
a) TL b) CC c) Both a & b d) OD
142. In case of PCFC, maximum period of credit allowed is ____ days from the date of
disbursement.
a) 60 b) 90 c) 180 d) 360
143. Statement of PCFC loans disbursed will be sent to FD, Kolkata at ____ interval.
a) Fortnightly b) Monthly c) Qrly d) Half Yearly
144. Red clause Letter of credit refers to special clause authorizing for ______
a) Transfer
b) Renewal without amendment
c) Security of another LC
d) Advance to beneficiary before shipment.
145. In a back to back letter of credit:
a) Two letter of credits are issued by the same branch of the Bank
b) Two letter of credits are issued by different branches of the same bank, located in
different countries.
c) A Letter of credit is opened with the security of another letter of credit by two branches
of different banks
146. Unless specifically mentioned, a letter of credit is
a) Revocable b) Irrevocable
c) Issuing Bank can recall the L.C d) Transferable
147. Forward contract can be booked for _______ transactions.
a) Purchase b) Sale c) Both a & b d) None of the above
148. If the rupee equivalent of forward contract is exceeding Rs 10 lacs, rates will be obtained from
a) Respective LHO b) Respective ZO
c) FD, Kolkata d) Treasury Dealing Room at Mumbai
149. A forward sale contract will be cancelled at ________ rate.
a) TT Buying b) TT Selling c) Bill Buying d) Bill Selling
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150. A Forward Purchase contract will be cancelled at ______ rate.
a) TT Buying b) TT selling c) Bill Buying d) Bill Selling
151. The balance along with interest in NRE accounts can be repatriated with permission
of _____.
a) RBI b) MOF
c) Commerce Ministry d) No permission required
152. Operation of NRE account by third party can be permitted by ADs _____
a) Under a Power of Attorney
b) Letter of Authority in the prescribed format
c) Either a or b
153. ADs can grant loan to NRE for the following purpose.
a) Investment other than Agr plantation and Real Estate
b) Direct investment on non-repatriation basis
c) Acquisition of house/flats for their residential uses subject to FEMA
d) All of the above
154. Which agency administers the economic sanctions imposed by the US Govt. to different
entities/ countries/organisations?
a) CIA b) USOFAC
c) Federal reserve d) Central Bank of USA
155. What is the full form of USOFAC?
a) United States Office of Federal Assets Control
b) United States Office of Foreign Assets Control
c) United States Office of Foreign Assets Claim
156. Forex Operations of which financial institutions are affected by the OFAC regulations?
a) Financial Institutions operating within USA
b) Financial Institutions operating outside USA
c) All financial institutions engaged in US Dollar denominated transactions, irrespective
of their geographical locations
d) All Financial institutions having trade relations with USA
157. The following types of accounts can be opened under FCNR(B).
a) SB b) CA c) TDR/STDR d) All of the above
158. FCNR(B) can be opened for a minimum period of ___ and maximum period ____ years.
a) 1, 5 b) 1, 3
c) 6 mths, 3 yrs d) None of the above
159. As per risk perception and country risk management guidelines of the bank, while dealing
with any forex transanctions, countries are divided into __________ nos. of risk categories.
a) 3 b) 5 c) 7 d) 9
175
160. Which country has been placed under insignificant category as per country risk
categorisation of the bank as on 30.06.2014?
a) New-Zealand b) Luxemburg c) Norway d) Switzerland
161. The minimum amount of Fixed deposit in USD under RFC account is _____.
a) 1000 b) 2000 c) 3000 d) 5000
162. The information pertaining to inflows and outflows of forex is submitted by ADs to RBI
through _______.
a) XOS statement b) R Return c) BEF statement d) Bill of Entry
163. Balance of Payments is calculated by RBI based on
a) R-Returns b) BEF c) XOS d) None of these
164. The eligible limit of Forward contract to be booked on past performance basis is computed
as the average of the previous three financial years' import/export turnover or the previous
year's actual import/export turnover,whichever is higher. Bank has recently revised the
limit for resident importers from________ to _________.
a) 50 % to 100 % b) 25% to 50%
b) 50 % to 75% d) None of these
165. Forward rate of a pair of currencies is dependent on
a) Interest rate different of the pair of currencies
b) Demand and supply of the two currencies
c) Economic policies of the two countries
d) Independent of all
166. Name of the software used by GMU (K) and forex handling branches for reconciliation of
nostro accounts
a) Smart Stream Reconciliation (SSR) b) Mercury FX
c) EXIM Bills d) Murex
167. _______ rate is used by banks for converting foreign currency denominated Assets and
Liabilities into rupees
a) Spot rate b) RALOO rate c) Online rate d) TT buying rate
168. No interest is paid in case of Premature closure before completion of one year in ____
type of term deposits.
a) NRE b) FCNR(B) c) RFC d) All of these
169. RBI recently allowed Ads to open NRE and FCNR(B) accounts for NRIs jointly with
resident Indians on _____basis.
a) Either or Survivor b) Former or Survivor
c) Jointly d) None of these
170. Forward contracts are usually permitted to be booked for a maximum period of
176
171. Rate of interest of rupee loans against FCNR(B) deposits is______
a) Base rate + 225 bps b) Libor + 450 bps
c) 1% above the deposit rate d) base rate
172. SDNs, SDNTs,Embagoed nations etc are terms related to _________
a) OFAC b) Patriot Act
c) Preventin of Money laundering Act d) KYC rules
173. Which of the following INCO terms 2010 envisages maximum cost and risk for the exporter?
a) Delivered Duty Paid(DDP) b) Delivered at Place
c) Cost insurance and Freight d) Free on Board(FOB)
174. Which of the following INCO terms 2010 envisages minimum cost and risk for the
exporter ?
a) Free Alongside Ship (FAS) b) Cost and Freight (CFR)
c) Ex works(EXW) d) Free Carrier(FCA)
175. Which of the following is a derivative instrument?
a) Forwards b) Futures c) Swaps d) All of these
176. Which of the derivative products are sold over the counter at our A & B category
branches ?
a) Options b) Futures c) Swaps d) Forwards
177. Margin Matrix is used for assessment of margin on forex transactions. Margin matrix is
based on ________ parameter.
a) Credit Rating b) Wallet Share
c) Size of transaction d) All of these
178. The eligibility criteria for opening Diamond Dollar Accounts under the scheme of Govt of
India is:
a) Firms and companies dealing in purchase/sale of rough or cut and polished diamonds
/ diamond studded jewellery.
b) Track record of at least three years in import or export of diamonds.
c) Having an average annual turnover of Rs. 5 crores or above during the preceding
three licensing years (licensing year is from April to March)
d) All of these
179. Which of the following international trade transaction does not require prior approval from
the Reserve Bank?
a) Acquisition of Immovable Property abroad for Overseas Offices
b) Counter Trade Agreements
c) Export of Goods on Lease, Hire, etc)
d) Participation in Trade Fairs Abroad)
177
180. Is URC 522 automatically applicable to all collections?
a) no, unless stated in collection instruction
b) yes, it automatically covers
c) it varies from bank to bank
d) None of these
181. Which of the following is true about High Sea Sale:
a) High sea sale is a sale made, of a consignment, while the goods are still in sea only.
b) It is a type of sale to save statutory taxes for the parties.
c) High Sea sales (HSS) is a sale carried out by the carrier document consignee to
another buyer while the goods are yet on high seas or after their dispatch from the
port/ airport of origin and before their arrival at the port / airport of destination.
d) All of these.
182. The maximum amount of ECB which can be raised by a corporate other than those in the
hotel, hospital and software sectors is _______ or its equivalent during a financial year.
a) USD 250 million b) USD 500 million
c) USD 750 million d) USD 1.00 billion
183. All-in-cost ceiling for External Commercial Borrowing (ECB) for average maturity period
of three to five years is _____________
a) 6 Month LIBOR + 200 bps b) 6 Month LIBOR + 300 bps
c) 6 Month LIBOR + 350 bps d) 6 Month LIBOR + 500 bps
184. Which of the following is true about NRO deposit a/c ?
a) All local payments in rupees including payments for investments in India subject to
compliance with the relevant regulations made by the Reserve Bank.
b) Remittance outside India of current income like rent, dividend, pension, interest, etc.
in India of the account holder.
c) Remittance up to USD one million, per financial year (April- March), for all bonafide
purposes, to the satisfaction of the Authorised Dealer bank.
d) Transfer to NRE account of NRI within the overall ceiling of USD one million per
financial year subject to payment of tax, as applicable
e) All of these.
185. Which of the following is true about Authorised Money Changers (AMC) ?
a) AMC are entities, authorised by the Reserve Bank under Section 10 of the Foreign
Exchange Management Act, 1999.
b) An AMC is a Full Fledged Money Changer (FFMC).
c) Minimum Net Owned Fund for single branch is Rs.25 lakhs and for multiple branches
is Rs.50 lakhs.
d) FFMCs are authorised to purchase foreign exchange from residents and non-
residents visiting India and to sell foreign exchange for certain approved purposes.
e) All of these.
178
186. Which of the following is true about acquisition of Immovable property by NRI/PIO ?
a) NRIs can acquire immovable property other than agricultural land/ plantation property
/ farm house.
b) Payment through Funds received in India through normal banking channels by way of
inward remittance from any place outside India or by debit to his NRE / FCNR(B) /
NRO account.
c) A PIO can acquire by way of purchase any immovable property (other than agricultural
land/ plantation property / farm house) in India.
d) A citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or
Bhutan, whether resident in India or outside India, cannot acquire or transfer immovable
property in India, without the prior permission of the Reserve Bank.
e) All of these.
187. Which of the following is true about contraventions under FEMA 1999 ?
a) Reserve Bank has been empowered to compound the contraventions of all the
Sections of FEMA, 1999, except clause (a) of Section 3 of the Act.
b) Directorate of Enforcement would exercise powers of compounding under clause
(a) of Section 3 of FEMA, 1999 (dealing essentially with Hawala transactions).
c) RBI can impose penalty up to thrice the sum involved in such contravention where the
amount is quantifiable or up to Rupees Two lakh, where the amount is not quantifiable
and where the contravention is a continuing one, further penalty which may extend to
Rupees Five thousand for every day after the first day during which the contravention
continues.
d) All of these.
188. Which of the following is true about Import trade into India ?
a) Import trade is regulated by the Directorate General of Foreign Trade (DGFT) under
the Ministry of Commerce & Industry, Department of Commerce, Government of India.
b) Authorised Dealer Category - I (AD Category - I) banks should ensure that the imports
into India are in conformity with the Foreign Trade Policy in force and Foreign
Exchange Management (Current Account Transactions) Rules, 2000
c) AD Category - I banks should follow normal banking procedures and adhere to the
provisions of Uniform Customs and Practices for Documentary Credits (UCPDC),
etc. while opening letters of credit for import into India on behalf of their constituents.
d) AD Category - I banks may also advise importers to ensure compliance with the
provisions of Income Tax Act, wherever applicable.
e) All of these.
189. Application on Form A1 is required to be made by persons, firms and companies for
making payments above ________________ for imports into India.
a) USD 1000 b) USD 5000 c) USD 10000 d) USD 25000
179
190. Which of the following is true about advnce remittance for imports ?
a) AD I banks can allow advance remittance upto USD200,000 for import of goods
without any bank guarantee.
b) For advance remittance above USD 100,000, without bank guarantee, PSUs/ Govt
Depts need to obtain waiver from Ministry of Finace Ministry.
c) In cases where the importer (other than a Public Sector Company or a Department/
Undertaking of the Government of India/State Government/s) is unable to obtain bank
guarantee from overseas suppliers and the AD Category - I bank is satisfied about
the track record and bonafides of the importer, the requirement of the bank guarantee
/ standby Letter of Credit may not be insisted upon for advance remittances up to
USD 5,000,000 (US Dollar five million).
d) As a sector specific measure, airline companies which have been permitted by the
Directorate General of Civil Aviation to operate as a schedule air transport service,
can make advance remittance without bank guarantee, up to USD 50 million.
e) All of these.
191. Which of the following is true regarding Receipt of import documents by the importer directly
from overseas suppliers and payment of the same without approval?
a) Where the value of import bill does not exceed USD 300,000
b) Import bills received by wholly-owned Indian subsidiaries of foreign companies from
their principals.
c) Import bills received by Status Holder Exporters as defined in the Foreign Trade
Policy, 100% Export Oriented Units / Units in Special Economic Zones, Public Sector
Undertakings and Limited Companies.
d) Import bills received by all limited companies viz. public limited, deemed public limited
and private limited companies.
e) All of these.
192. What is the maximum amount that Authorised Dealers can allow under the Liberalised
Remittance scheme for Resident Individuals ?
a) USD 10,000 b) USD 25,000 c) USD 100.000 d) USD 1,25,000
193. Term deposits in which of the following category of deposits do not earn interest if run for
less than one year ?
a) NRE deposits b) FCNR deposits c) RFC deposits d) All of these
194. Where imports are made in non-physical form, i.e., software or data through internet /
datacom channels and drawings and designs through e-mail / fax, bank should obtain
__________as the evidence of import
a) Bill of entry
b) Declaration of the CEO of the co.
c) Certificate from a Chartered Accountant that the software / data / drawing/ design
has been received by the importer, may be obtained.
d) Softex Form
180
195. Which of the following is true about Exchange Earners Foreign Currency A/c (EEFC) ?
a) This account shall be maintained only in the form of non-interest bearing current
account. No credit facilities, either fund-based or non-fund based, shall be permitted
against the security of balances held in EEFC accounts by the AD Category - I banks.
b) An exchange earner is eligible to retain 100% of the balances in EEFC accounts
subject to the condition that the sum total of the accruals in the accounts during a
calendar month should be converted into Rupees on or before the last day of the
succeeding calendar month after adjusting for utilisation of the balances for the
approved purposes or forward commitments.
c) The facility of EEFC scheme is intended to enable exchange earners to save on
conversion/transaction costs while undertaking forex transactions in future.
d) All of these.
196. Which of the undernoted statement(s) are true pertaining to FOB contract, in case of
import to India
a) The cost and freight will be borne by the exporter
b) Insurance and freight will be borne by the importer
c) Cost ,insurance and freight will be borne by the exporter
d) Only freight will be borne by the importer.
197. Maximum quantum of foreign currency that can be brought by a person visiting India without
declaration to custom is :
a) USD 2500 b) USD 5000 c) USD 7500 d) USD 10000
198. Miscellaneous remittances are permitted up to _________ without documentation
formalities , on simplified declaration basis
a) US $ 25000 for current account transaction
b) US $ 25000 irrespective of any current or capital account
c) US $ 5000 d) All of these
199. NRIs will be eligible to transfer funds from NRO account to NRE account subject to:
a) Within the overall ceiling of US $ one million per financial year
b) Within the overall ceiling of US $ one million per financial year subject to payment of tax
c) Not permitted
d. None of these
200. The usance period of Letters of Credit opened for import of gold in any form including
jewellery made of gold/precious metals or/and studded with diamonds/semi precious/
precious stones should not exceed _________ days from the date of shipment and only
on 100 per cent cash margin basis.
***
181
ANSWERS TO INTERNATIONAL BANKING
1 C 41 C 81 A 121 C 161 A
2 C 42 A 82 D 122 D 162 B
3 C 43 C 83 C 123 A 163 A
4 D 44 C 84 B 124 B 164 A
5 D 45 D 85 C 125 C 165 A
6 D 46 C 86 C 126 B 166 A
7 C 47 D 87 A 127 A 167 A
8 D 48 A 88 A 128 B 168 D
9 A 49 B 89 B 129 B 169 B
10 D 50 C 90 A 130 C 170 D
11 B 51 B 91 A 131 D 171 A
12 A 52 D 92 D 132 C 172 A
13 A 53 C 93 C 133 B 173 A
14 C 54 C 94 B 134 D 174 C
15 C 55 C 95 D 135 B 175 D
16 B 56 D 96 C 136 B 176 D
17 D 57 B 97 D 137 D 177 D
18 C 58 A 98 C 138 C 178 A
19 A 59 B 99 D 139 D 179 D
20 D 60 A 100 B 140 C 180 A
21 B 61 A 101 B 141 B 181 D
22 B 62 A 102 C 142 C 182 C
23 C 63 B 103 D 143 A 183 C
24 D 64 A 104 A 144 D 184 E
25 C 65 A 105 C 145 C 185 E
26 C 66 A 106 C 146 B 186 E
27 A 67 B 107 D 147 C 187 D
28 D 68 A 108 A 148 D 188 E
29 D 69 D 109 A 149 A 189 B
30 D 70 C 110 B 150 B 190 E
31 A 71 B 111 C 151 D 191 E
32 C 72 B 112 C 152 C 192 D
33 C 73 D 113 C 153 D 193 D
34 D 74 B 114 E 154 B 194 C
35 D 75 A 115 C 155 B 195 D
36 A 76 B 116 A 156 C 196 B
37 D 77 B 117 B 157 C 197 B
38 B 78 C 118 A 158 A 198 A
39 D 79 B 119 B 159 D 199 B
40 C 80 D 120 C 160 C 200 B
182
RATIONALES ON CURRENT DEVELOPMENTS
1. State Bank Buddy, the mobile wallet has been launched.

2. Offsite Transaction Monitoring System has been introduced.
3. SBI Passport has been enabled.
4. Tatkal Tractor Loan scheme has been launched.
5. Project Avirat has been introduced.
Jaipur.
1. For banks today, mobile wallets have a lot of potential and can be a key to building loyalty
and creating new revenue streams. The millennial, a group that will guide the overall
consumer attitude in future, are showing preferences for mobile payments and many of
them feel that this would be the payment method five years down the line. In order to ensure
our presence in this space, it has been decided to launch "State Bank Buddy", our Mobile
Wallet in collaboration with Accenture and MasterCard.
2. Offsite Transaction Monitoring System has been introduced for
i) Surveillance & monitoring of transactions passing through CBS.
ii) Regulatory requirements.
iii) Directions from Audit Committee of the Board.
OR
(i) Central Board of Directors has observed that:
'Continuous offsite monitoring, covering different parameters, as a measure of
strengthening transaction audit, in addition to regular on-site scrutiny be introduced
by I & MA Department'.
(ii) RBI, in its AFI of 2011, commented upon pending introduction of off-site transaction
monitoring in the Bank.
(iii) Additionally, Govt. of India, in its guidelines on Internal Audit of PSBs, has directed
for introduction of Off-site Surveillance Cell under the control of Internal Audit
Department.
183
3. SBI Passport the single sign on portal of the Bank where access to a number of portals of
the Bank like CMS, ATM Web, BMMC etc are available on a single ADS ID and PW.
4. According to CRISIL report on Tractor Finance, about 20-25% of tractor sales in India are
on cash basis. To improve our market share in tractor finance and to facilitate prompt loan
delivery to these High Net Worth farmers who otherwise purchases tractor on cash, a new
product TATKAL (MORTGAGE FREE) TRACTOR LOAN (TTL) has been rolled out.
5. The 2 Mbps alternate links project (christened as "Project Avirat") is an ambitious project
aiming at providing 2 Mbps alternate links on wireless/wired connectivity to all branches of
State Bank of India and Associate Banks, including VSAT branches.
The alternate connectivity will translate into higher uptimes, adequate and consistent
connectivity at end locations leading to better user/customer experience.
Jaipur, to analyse
a. Transactions to strengthen fraud control system &
b. Alerts, based on ATM / POS / e-Com transactions, generated on various business
rules built in the software.
***
184
1. TAB banking has been introduced by our bank.
2. IRATA facility has been introduced for our customers.
3. "CARE - Depositor Blind / visually Challenged" stamp is to be affixed on each cheque
leafs of a visually challenged depositor.
4. It has been decided by the competent authority to enhance the financial powers of various
functionaries for disposal of the assets of deceased constituents without legal
representation.
5. Depositor Education and Awareness Fund has been created.
6. It has been made mandatory to obtain clearance from the Law Department whenever any
property is taken as security (primary/ collateral) based on Gift Deed.
7. A new Car Loan Product "Collateralised Car Loan Scheme renamed as Loyalty Car loan
scheme" has been launched.
8. Revival letters are dispensed with for standard term loan accounts.
9. Product Pehla Kadam and Pehli Udaan has been introduced.
10. KYC guidelines have been simplified.
1. TAB based account opening facility has been made available by IT Dept, GITC to enable
our officials to open Savings Bank accounts at the premises of the customers without the
need for the customer to visit the branch. The launch of this tech driven and customer
friendly facility will significantly help in reducing customer footfall at the branches for the
purpose of Savings Bank account opening.
2. Users find it difficult to visit home branch for performing SOME {(i) Immediate activation of
third party and availing full third party transfer limit of Rs.5 lacs instantly (Instead of a cooling
period of 5 days from the normal limit Rs.50,000/-) (ii) Resetting of login password in the
event when the customer has forgotten the profile password. (iii)Unlock User Access} tasks,
specifically when the customer is away or settled at a place far off from his home branch.
In order to obviate inconvenience to the customer and to popularize the usage of internet
banking channel, an alternate process 'Internet Banking Requests Approval through ATM
(IRATA)' to approve the requests (i) to (iii) through ATM has been developed.
3. In order to avoid the 'cheque being returned unpaid' on account of 'difference in the
signature'.
4. It has been decided by the competent authority to enhance the financial powers of various
functionaries for disposal of the assets of deceased constituents without legal
representation, to make the payment process faster and extend better customer service
to the family of the deceased.
185
5. Under the provisions of this facility of this FUND, the amount to the credit of any account in
India with any bank which has not been operated upon for a period of ten years or any
deposit or any amount remaining unclaimed for more than ten years shall be credited to
the Fund, within a period of three months from the expiry of the said period of ten years.
The Fund shall be utilized for promotion of depositors' interest and for such other purposes
which may be necessary for the promotion of depositors' interests as specified by RBI
from time to time.
6. Whenever any property is taken as security (primary/ collateral) based on Gift Deed,
clearance must be obtained from the Law Department without fail in addition to obtention
of TIR from the Panel Advocate in order to obviate any possibility of attempt of fraud in
creation of security owing to inadequate ability of our operating functionaries to handle the
security property under Gift Deed.
7. i. It may help to acquire a greater wallet share of the existing customers.
ii. It may reduce the cost of acquiring a new customer.
iii. It may prevent our housing loan customer from migrating to other banks to avail car
loan.
iv. This product may stimulate demand for a car loan from those customers who initially
plan only for a housing loan, but in whose minds, there is a latent desire to go in for
car as an additional comfort for their family.
v. Car Loans under this scheme can be expected to be relatively NPA free on account
of charge on immovable property.
8. 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.
9. RBI, vide their circular DBOD.No.Leg.BC.108/09.07.005/2013-14 dated 6th May,
2014 have issued the instruction on opening of Savings Account for Minors that a. A
Savings /Fixed / Recurring bank deposit account can be opened by a minor of any
age through his/her natural or legally appointed guardian. In view of this and to avail
the benefit of "catch them young" philosophy our Bank has introduced feature rich
products like Pehla Kadam and Pehli Udaan.
10. The objective of this is to help the common man in opening bank accounts without
diluting the essence of KYC/AML/CFT guidelines and to provide boost to the PMJDY
programme.
***
186
1. INB maker checker concept has been introduced for Branch Interface activities.
2. A new product "Stree Shakti Tractor loan" is introduced.
3. Super Bike Loan has been introduced.
4. Power Current account variants have been downsized.
5. HNI guidelines revised.
6. SB interest application dates have been changed.
7. Mobile banking services are made available over USSD.
8. Deceased account settlement guidelines as regards surety has been revised.
9. ATM card facility is now extended to illiterate account holders.
10. Gold loan safe-keeping charges have been introduced.
1. If any one of the role holders is not available on any day, the servicing of corporate customer's
request pertaining to Internet Banking facility cannot be undertaken due to non-availability
of additional officers leading to inconvenience to the customers.
l The processing of CINB related activities becomes burdensome for the branches
because the staff members who can perform these activities are limited.
l Non-involvement of clerical staff in CINB related activities deprives these staff from
learning and developing competencies in INB, and as a result, servicing and marketing
of CINB gets restricted. This reduces the potential of CINB as an alternate channel.
2. Tractor finance market is dominated by private financiers, mostly NBFCs. Though SBI
pricing for tractor finance is competitive, subdued growth is recorded. To capture the
emerging opportunities and improve our market share in Tractor finance, Therefore, a
new variant namely 'Stree Shakti Tractor loan-Without Collateral' and 'Stree Shakti Tractor
loan-With Collateral' with women as co-borrowers are rolled out with competitive features
and risk proofing.
3. During the past four years a new segment in Two Wheelers has emerged which is fondly
called Super Bikes. These are expensive and powerful like Cars. Bikes with engine capacity
of 500CC or more are considered as Super Bikes. The cost of Super bikes start at Rs.4
Lakhs plus which is more than the entry level cars such as Nano, Indica, Alto, WagonR etc
and goes up to Rs.44 Lakhs. The Indian Super Bike market is dominated by Harley
Davidson, Hyosung, Suzuki, Ducati, Honda, BMW, Kawasaki etc. As this happens to be
high ticket and niche segment, it has been decided to launch a special product for financing
the purchase of these super bikes.
187
4. To do away with the redundant, unpopular and low penetrated CA variants like Power
Premium, Power Privilege, Power Advantage, Power Super, Power Lite. This will ensure
due focus on existing popular variants like I. Power Pack - (5096-2401), QAB - Rs.5 lacs
II. Power Gain - (5095-2401), QAB - Rs.1lac III. Power Base - (5081-2401), QAB - Rs. 20000
5. To align different divergent definitions as regards deposit & advance, the definition of HNI
Customers stand revised as HNI : Customers having an average quarterly balance (AQB)
of more than Rs.20 lacs under P domestic deposits at CIF level. Meta Gold, Capital Gains,
Public Provident Fund and Senior Citizen Govt Scheme balances are to be excluded
while arriving at the net value.
6. To ease the Month-end burden on the system it has been decided to shift the Savings
Bank Interest application dates from the existing 30th June and 31st December to 25th
June and 25th December respectively, effective from the current year.
7. To facilitate the customers having non-java mobile phones to avail the service. The
advantage of using this mode of Mobile Banking Services is that the customers need
not download the mobile banking application and can avail the facilities over a SMS
session.
8. To make the payment process faster and extend better customer service to the family of
the deceased it has been decided that any legal heir who has signed the letter of disclaimer
in favour of other legal heir(s) may stand as surety if he/she is independently good for the
amount of claim.
9. In view of demands being made by some of these customers and especially under the
backdrop of Bank's Financial Inclusion initiative and now, Jan Dhan Scheme of Government
of India, a review of the restrictions on issuance of Debit Cards to illiterate customers has
been carried out and it has been decided that where accounts under Financial Inclusion
(FI) products are to be opened for illiterate customers, a corresponding Debit Card may
be issued to those illiterate customers who request for a Debit Card. Customers not
requesting for any Card also need to be told that any add-ons such as insurance, if any,
with the Card will not be available to them.
10. Safe keeping charges for gold ornaments against which Gold Loans (under Personal
or Agricultural Segment) are sanctioned and subsequently liquidated but gold
ornaments are kept lying with the Bank are now chargeable as this amounts to income
leakage as otherwise safekeeping in a locker would have attracted usual charge. This
will deter unscrupulous customers against use of banking service in a disguised mode,
free of charge.
***
188
1. Cash handling charges for P-segment customer has been introduced.
2. "ATM Card Limit/Channel/Usage Change" option has been provided to our INB users.
3. "Aadhar based Digital Life certificate" for pensioners has been launched.
4. Applicant's name and complete address should invariably be captured in the relevant fields
in CBS while issuing IOIs/Drafts/Bankers' Cheques
5. De-Duplication of Customer Information Files (CIFs) has been enabled.
6. Auto issue of RuPay Debit Cards has been enabled to FI accounts.
7. Debit Cards to be issued to illiterate customers opening accounts under FI programme.
8. A Web Based Concurrent Audit System (WBCAS) has commenced at the whole
Bank level.
9. SLBCs are to provide due date structure for each crop as regards crop loan repayments
are concerned.
10. Policy on Forensic Audit has been devised.
1. To increase our other income portfolio and to motivate customers against cash txn. This
will also help customers migrate to CDM which are relatively free of charges.
2. All the Debit Card variants that are being issued by the Bank today have variant-specific
fixed daily limits for cash withdrawal and for purchases over Point of Sale (merchant
establishments) and for e-Commerce as well as pre-defined channel activation and usage
settings at Bank level. With a view to providing flexibility to State Bank Debit Cardholders
to set these parameters on their own based on their risk appetite, a functionality "ATM
Card Services" has been introduced under "e-Services" tab on the post-login Personal
Banking page of www.onlinesbi.com.
3. The proposed digital certification will be additional facility available for a pensioner to
submit Life Certificate in November each year, in order to ensure continuity of pension
being credited into his account. A Life certificate issued online through jeevanpramaan.gov.in
with Biometric Authentication will also be accepted as a valid Life certificate. If the pensioner
is already enrolled on the jeevan pramaan portal, next time he gives his Aadhaar number,
he would only be required to authenticate his bio-metric for updating date of his / her
digital life certificate.
4. Remittance transactions play an instrumental role in activities related with money laundering/
financing of terrorism, as it is very difficult to maintain trail of these transactions. Non
availability of the trail of these transactions prevents identification of the person behind the
scene of the crime/offence. To obviate above mentioned eventuality, suitable provision is
made available in the "Inland Rupee Remittance Module" in CBS to capture the applicant's
name and complete address, furnished by the applicant in the credit voucher.
5. RBI guidelines on KYC envisage that Bank should implement allotment of Unique Customer
Identification Code (UCIC), a relationship number, for all customers of the Bank. It implies
189
that all the accounts of a customer should be tagged to a number which should be unique
and no customer should be allotted more than one UCIC at the whole Bank level. The
deadline set by RBI for implementation of UCIC is 31.12.2014. Our Bank has implemented
the UCIC - a relationship number - in the form of Customer Information File (CIF) to all
customers of the Bank simultaneously with the introduction of CBS in the Bank. As per RBI
guidelines, a customer can have only one UCIC/CIF.
6. Under PMJDY, RuPay Debit Cards are to be provided to all Basic SB account holders to
extend to them the benefit of Rs one lac accident insurance cover. However, we find that
many FI account holders have not been issued cards. In order to clear the backlog and
also to ensure that cards are issued to all FI customers expeditiously, it has been decided
to issue cards to all FI accounts opened w.e.f 1st August 2014 automatically.
7. Customers not having any Card will not get any add-ons such as insurance, uner the PMJDY
scheme.
8. Based on the need to improve the coverage and the quality of Concurrent Audit, it was
decided by the appropriate authority to go for a restructuring of the Concurrent Audit process
in the Bank. Further, a need for revision of the system was felt to overcome the inadequacies
of the existing system in the following areas:
a) Role clarity of the Concurrent Auditor
b) Standard format for reporting
c) Verification of compliances
d) Technology Support
e) Monitoring of the functioning of the system
f) Non-focussing on critical areas by the Concurrent Auditors
g) Inadequate staffing
9. SLBCs provide due date structure for each crop based on the crop season period of their
States / districts and local farming conditions, which is not in line with our common due
dates. Farmers raising crops with longer harvest period are facing difficulty in repaying
the loan within the common repayment due date fixed by the bank which render them
ineligible for interest subvention for prompt repayment. Farmers are unable to avail interest
subvention benefit up to the 'actual crop period'. Farmers are also unable to avail the
benefits of State Government Interest Subvention Schemes, which is available in addition
to the GoI agri interest subvention benefits, due to shorter repayment period imposed by
common repayment due dates.
10. Forensic Audit relates to the findings by audit of legally tenable evidence, and in the process
corporate veil is being lifted (in case of corporate entities) to identify the fraud (a criminal
offence) and the persons responsible for it. It also aids in tracing the money trail and recovery
of the money unduly diverted out of the system.
***
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1. It has been decided that Branches should issue the Pre-printed Internet Banking Kit together
with the Welcome Kit at the time of opening the account, to all the customers desirous of
availing the Internet Banking facility.
2. Inter-core charges applicable on GRC transactions at CDMs have been revised.
3. CIF De-Dupe functionality has been enabled.
4. "NRI FAMILY CARD" has been launched.
5. SBI NANO YOUTH CAR LOAN SCHEME has been introduced.
6. Savings bank account opening without initial deposit has been allowed.
7. Stock Audit policy has been revised.
8. It has been decided by the Bank to centralize ATM related financial complaints at the
GITC.
9. It has been decided to make self learning/ training initiatives mandatory and assign
weightage in AARF of officers.
10. The Bank's right to exercise recompense should be included in the sanction letter to the
borrower of a restructured account.
1. At present, the pre-printed Internet Banking Kit is not a part of the Welcome Kit. As a result
customers often have to approach another desk to receive the pre-printed Internet banking
Kit after receiving the Welcome Kit. This leads to customer dissatisfaction and increases
the time he/she has to spend at the Branch before completing the account opening process.
2. With a view to further promote CDMs as a preferred transaction channel for GRC users
(non-home cash depositors) and further contribute to de-cluttering of branches where CDMs
are available, it has been decided to reduce the inter-core charges applicable on GRC
transactions at CDMs to Rs. 30/- per transaction.
3. RBI guidelines on KYC envisage that Bank should implement allotment of Unique Customer
Identification Code (UCIC), a relationship number, for all customers of the Bank. . Bank has
implemented the UCIC - a relationship number - in the form of CIF to all customers of the Bank,
simultaneously with the introduction of CBS in the Bank. As per RBI guidelines, a customer can
have only one UCIC/CIF. It is, therefore, necessary to de-duplicate the multiple CIFs.
4. A large number of our NRI customers have to periodically send remittances back home to
their family members /acquaintances etc. In order to address this need of NRI customers
and their family members /acquaintances in India, we have introduced a prepaid card
under the name of 'NRI FAMILY CARD'.
5. TATA Motors had requested us to float a scheme to promote Tata Nano. According to
them, now-a-days young customers, especially, from IT Sector, College students etc are
attracted to Nano. The new scheme will target youth (age between 18 to 28 years), will
have reduced income criteria (minimum NAI of Rs.2 lakhs per annum) and will be repayable
in maximum 60 months.
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6. Bank has waived minimum balance requirement for all types of Savings Bank Accounts.
As such, many customers wish to open their Savings Bank Accounts with no initial
deposit. Some of the customers also desire that their newly opened/ to be opened
Savings Bank account be funded with a cheque deposit/transfer from own account
/RTGS/NEFT/INB etc. In view of the feedback received from the branches and in
order to give more convenience to the customers and also to obviate complaints,
it has been decided as such.
7. To streamline the process of conduct of stock and receivable audit of accounts with
Exposures above Rs. 1 crore. Stock Audit is part of post sanction follow up for independent
assessment/validation of primary security to ensure end use of funds in high value advances
and other accounts where risk level has gone up . Stock audit covers audit of stocks and
receivables. The stock audit is required to assess the quantity, quality and value of the
current assets and compare the build-up of current assets projected at the time of
sanctioning of credit facilities. Besides, this also evaluates the mechanism of inventory
and receivables management of the unit.
8. To ensure strict compliance with RBI stipulated timelines for complaint resolution and spare
Branch/RBO/LHO officials from numerous tasks pertaining to complaint resolution.
9. In a knowledge-driven industry like banking, acquisition, internalisation and effective usage
of relevant knowledge pave the way for individual growth as also organisational
development. Towards this end, it is felt that participation in learning activities, especially
e-learning, needs to be made mandatory for our employees. This will make our employees
more aware, fill up knowledge gaps, bolster confidence and equip them to shoulder higher
responsibilities. Accordingly, with a view to promoting self-learning as also driving
institutional training, It has been decided to make self learning/ training initiatives mandatory
and assign weightage in AARF of officers.
10. In regard to concessions and reliefs made available to a restructured/rehabilitated unit,
the extant instructions stipulate a mandatory clause in all the rehabilitation packages
whereby, when the unit turns the corner and the rehabilitation is successfully completed,
the sacrifices undertaken by the Bank should be recouped from the unit out of the future
profits / cash accruals. Hence all restructuring packages must incorporate 'Right of
Recompense' clause and it should be based on certain performance criteria of the borrower.
In any case minimum 75 per cent of the recompense amount should be recovered by the
lenders and in cases where some facility under restructuring has been extended below the
base rate, 100 per cent of the recompense amount should be recovered.
***
192
1. Whistle blower policy of the Bank has been revisited.
2. Bank has now modified and has decided to mandatorily cover all eligible MSE loans only
up to Rs.50.00 Lac under Credit Guarantee Scheme (CGS) of CGTMSE from earlier limit
of Rs. 100.00 lac.
3. A " Code of Conduct for expressing views in Social Media" has been drawn up for our staff
to comply with.
4. 'Student Plus Advantage Card' has been introduced.
5. As per extant instructions, every CSPs should be visited by the Branch Manager or any
other designated official of the link branch at required periodicity.
6. Bank may not insist on legal representation from the legal heirs for release of gold / silver
ornaments pledged for loans of deceased customers.
7. Controllers will review simultaneously Cash Retention Limit and Gold Retention Limit of
branches annually in the month of January every year.
8. Bank can bid in the auctions of immovable properties conducted by the Bank itself.
9. Agriculture land is generally not accepted as collateral security for Commercial Advances.
10. While conducting the auction of any gold ornaments pledged against a loan, each item of
the ornaments must be auctioned separately.
1. To ensure
a conducive culture in the workplace so that every employee shall feel free to raise concerns
about any irregularity, unethical practice and/or misconduct inside the Bank.
that no unfair treatment will be meted out to a Whistle Blower Providing prompt redressal
to the Whistle Blower against any fallout.
special attention for extensive utilization of Whistle Blower Policy in unearthing possible
fraud in the Bank while conducting Preventive Vigilance Meeting at Branches or BPR outfits
2. Modifications in the above instructions are based on the outcome of Portfolio analysis of
CGTMSE advances and recent reduction in extent of guarantee cover by CGTMSE from
62.50% to 50% in the loan range of >Rs.50 lacs to Rs.100 lacs.
3. It has been observed that a lot of Bank related information and statements are being placed
by our staff on the social media, especially on Facebook. Even though these posts may be
expressed in their personal capacity, such comments often contain sensitive data about
our internal systems and processes, working of the CBS, etc. This is not at all desirable as
the social media is accessible to the public at large and such information, which is not for
public consumption, can be misleading and damaging to the Bank's interests. Hence it is
now felt that a " Code of Conduct for expressing views in Social Media" be drawn up for
our staff to comply with. This will help in sensitizing the staff from exchanging sensitive
information about the Bank, even in their personal capacity.
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4. 'Student Plus Advantage Card' designed specifically for Education Loan Borrowers on the
lines of 'Advantage Plus Card'. This is targeted at Students / Parents / Co-Borrowers
(Education Loan Borrowers). As the students are enrolled at Colleges/ Universities which
are far away from their hometowns, this new product will provide them with an additional
means of financing their expenditure whenever needed. It is the first of its kind in the industry
and a winning proposition for the Education Loan borrowers. Thus this product has the
potential of strengthening our relationship with the younger generation students who are
aspiring for better opportunities and upliftment.
5. To carry out the following tasks:-
a) To monitor the activities at CSP outlets.
b) To collect and check applications received for opening of accounts.
c) Marketing for loans/advances.
d) Deposit Mobilization
e) Financial Literacy among customers of the area.
6. RBI have advised the Bank that they may not insist on legal representation from the legal
heirs for release of gold / silver ornaments pledged for loans of deceased customers,
irrespective of the value such assets, except in the following cases,
(i) When there are disputes amongst the legal heirs and all of them do not join in
indemnifying the bank, and
(ii) where bank has reasonable doubt about genuineness of the claimant(s) being the
only legal heir(s) of the deceased customer.
7. Controllers will review simultaneously Cash Retention Limit and Gold Retention Limit of
branches annually in the month of January so that the required data are made available to
the MBPM Department, LHO Mumbai for obtaining insurance on centralised basis w.e.f
1st April every year. The review will indicate any upward revision/ downward revision/
retaining the same limit.
8. There is no express prohibition also in the SARFAESI Act which prevents the Bank from
bidding in the auction conducted by the Bank itself. Under the provisions of the Code of Civil
Procedure, a decree holder can participate in the auction conducted by the Court in respect
of sale of property of the judgement debtor. The Bank can, therefore, bid in the auctions of
immovable properties conducted by the Bank itself, subject to the following safeguards:
(a) Preferably, the branch or office of the Bank other than the branch or office which
initiates or conducts the sale, should bid in the auction.
(b) Necessary approval should be obtained from an authority, preferably not below the
rank of CGM/GM for bidding in the auction.
9. In majority of the States, laws are in force which restrict the transfer or creation of an interest
by way of mortgage, charge etc. on agricultural lands. Normally, the State Acts would contain
a provision which prohibits transfer/mortgage of agricultural land except in the case of
advance/loan/finance taken for agricultural purposes. Also SARFAESI Act specifically
exempts agricultural lands from its purview.
10. Because when the total amount realised is sufficient to liquidate the outstanding plus interest
in full, the auction needs to be stopped.
***
194
RATIONALES (TRADITIONAL)
ACCOUNTING SYSTEMS:
l All debits to Suspense, System Suspense and Sundry Deposits Accounts must be passed
by the Branch Manager.
R. In order to obviate the possibilities of unauthorised payment out of these sensitive accounts.
l Under no circumstances, Suspense Account should be utilised for granting temporary
accommodation.
R. Because Suspense Account is utilised only for the limited purpose of amounts which can
not be straightaway debited to the proper accounts immediately.
l The vouchers of the branch should be cancelled (by indelible pencils) by the V.V.R.
(Voucher Verification Reports) day book checking official and thereafter by B.M./Manager
of the Division.
R. In order to ensure that each voucher is signed/passed by an authorised official within
the passing powers delegated to him and to detect possible frauds/forgeries,
manipulations, etc.
l Why are the duplicate keys of the branch deposited with another branch?
R. In order to ensure separate custody of the two sets of keys (so that the duplicate keys can
be used easily in the event of loss of originals. (The relative S.C. receipt is held by the B.M.
in his safe, outside the strongroom.)
l The amount advanced to the despatcher for postal expenses is debited straightaway to
Charges A/c whereas the advance made to the Cash Officer for meeting petty cash
expenses is debited to Suspense Nc.
R. The entire postal expenses are debited straightaway to Charges A/c under the sub-head
'Postage'.
The (aggregate amount of) sub-heads of Charges A/c under which petty cash expenses
will be classified at the end of the month is not known beforehand.
l Power of attorney registers are required to be retained for a period of 60 years.
R. This is done with a view to safeguarding the Bank's interests in the case of legal disputes
litigation in respect of the transactions based on power of attorney (recorded with the
Bank).
l The details of time deposits according to interest rates and maturity periods are analysed
periodically.
R. This enables the Bank to know the mix of time deposits thereby facilitating decisions
regarding investments and cost of funds at the apex level.
l The format of the Frauds Register has been revised recently.
R. With a view to taking due care of proper recording of the cases of frauds, burglaries,
dacoities, thefts, etc.
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l The charges for conducting clearing houses should be reviewed at yearly intervals.
R. The maintenance charges proportionately for the clearing conducted at such centers, as
determined by the bank conducting the clearing, on rent for accommodation, depreciation
on equipment and furniture, and recurring establishment expenses including salaries paid
to the staff of the bank conducting the clearing calculated on a proportionate basis for the
period for which their services are utilized for the clearing operations, and overtime
allowance paid to such staff for the purpose of balancing the books/ reconciling the
differences in the clearing telephones, electricity, stationery, maintenance charges for
equipment and expenses towards any other facilities provided, shall be shared equally by
all the members. With a view to ensuring that the charges are recovered from the member-
banks the review is to be done as on 01st April every year.
BRANCH CLEARING (REPLACED BY IBTS):
l No accounting entries relating to Central Office interest (transfer price mechanism) are
passed now.
R. Due to increase in number of departments/transactions and with a view to reducing the
pressure on GAO, Kolkata.
l Why is the signature of the payee/endorsee/holder obtained on DDP slip (COS-6) in addition
to that obtained on the reverse of the cheque/withdrawal form?
R. In affirmation of the correctness of the particulars recorded on the slip. The payee shouldn't
write 'Received Payment" else it becomes a receipt and will attract stamp duty.
AGENCY CLEARING:
l Why has Agency Clearing Scheme been revised from time to time?
R. With a view to simplifying the work at the branches, prompt reconciliation of inter-bank
transactions and ensuring quick settlement of funds between the participating banks,
resulting in increased profitability.
ANNUAL CLOSING:
l Adjusting Account is opened in the General Ledger at the time of annual closing.
R. To ensure that the Bank's profit/loss reflects the true position of its unearned/accrued
earnings and outstanding/pre-paid expenses relating to the accounting year.
FIXED ASSETS:
l Why has refined accounting system for fixed assets been introduced?
R. Under the refined accounting system, the work relating to fixed assets items has been
decentralised from the C.A.O. to branch level with a view to exercising effective control
over the transactions relating to such items and their physical and financial records. The
calculations relating to depreciation are also made at the branch level. The present
aggregate book value (written down value) of the items is reflected in the General ledger.
l Why is depreciation charged on the Bank's fixed assets?
R. it is charged to make usual allowance for normal wear and tear of fixed assets due to their
utilisation.
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l The quantum of depreciation charged on the Bank's fixed assets is much higher than what
is permissible generally. Why?
R. The device is adopted by banks to increase their secret reserves.
CASH DEPARTMENT : SYSTEMS AND PROCEDURES:
l Why have Revised systems and procedures for Cash Deptt. been introduced?
R. To relieve the Cash Officer of vicarious responsibilities by making the Cash Department
employees directly accountable to the Bank for their acts of intromissions (as in the case
of other categories of employees).
l Under Indian Coinage Act, 1906, one rupee notes are issued by the Government of India
whereas all other notes are issued by the R.B.I.
R. No reserve is required to be maintained for issuance of one rupee notes whereas all other
notes other than one rupee notes, are guaranteed by the R.B.l.
l It is not considered necessary to provide round-the-clock guards for non-currency chest
branches and at select ATMs.
R. This is resorted to as a cost control measure as the cash retention at non-chest branches,
etc. is much low as compared to chest branches. Moreover, adequate insurance cover is
arranged by the bank for the cash holding.
l Currency notes are not treated as security.
R. Currency notes are legal tender (under the Indian Coinage Act. 1906) transferable by mere
delivery. Moreover, it is not possible to ascertain the nature of a holder's title and defects,
if any.
l We keep minimum branch cash balance.
R. To keep appropriate statutory Cash Reserve Ratio with the R.B.I. Further, this increases
our profitability by optimum utilisation of resources (as the cash balances represent the
idle funds).
l Paying cashier cancels the signatures of the drawer at the time of payment of a cheque to
the holder (in such a way that signatures are not defaced).
R. To prevent the possibility of the instrument being removed surreptitiously and encashed
second time or put into improper/unauthorised use.
l Why do we maintain running balance in the Cash Officer's Jotting Book?
R. To know the exact position of currency at a glance by totalling the receipts and withdrawals.
(The Book provides complete summary of cash transaction cashier-wise and facilitates
the balancing of the cash at the end of the day.)
l There is no account in the General Ledger showing balance of currency chest at the branch.
Why?
R. The currency chest is the property of the RBI held by us as an agent/bailee. Therefore, its
balance is not reflected in the Branch General Ledger which records only the balances of
the branch.
197
l Currency transfer is not passed through Government Account.
R. Currency Chest is the property of the RBI held by the Bank as an agent/bailee whereas
Small coin Depot is the property of the Government of India.
l No accounting entry is passed while transferring funds from one currency chest branch
another currency chest branch and remittances received from/sent to the R.B.I.
R. Currency chest is the property of the R.B.I. and the transfer of funds effected is nothing but
keeping the money from one place (chest) to another. (It does not involve a money
transaction on the Bank's part). Moreover, it does not alter the overall position of R.B.I. and
the Bank. (But necessary entries are made in the vault register, currency chest book and
currency chest slip).
l Why has Single Window Delivery System been introduced?
R. The S.W.Os have been designed to provide instant and courteous service at one counter
to the public and customers of the Bank thereby projecting better image of the Bank.
l S.W.Os. should not be withdrawn even temporarily. Why?
R. Even temporary withdrawals of the system may result in adverse customer reaction and
Bank's image would suffer in the process.
DEPOSITS GENERAL:
l The depositors of the S.B.l. are known as unsecured creditors.
R. No depositor holds any security or has physical/manual/symbolic/constructive charge on
the assets/properties of State Bank of India. (Bank is an unsecured privileged debtor).
l Letters of thanks (in COS 520 and 522) should invariably be sent by Regd. AD Post to the
persons opening or introducing new account/constituent.
R. For ascertaining the correctness and genuineness of the addresses and the introduction.
This reduces the possibilities of frauds/forgeries. Also to express our gratitude for extending
the patronage by the depositor to the Bank. (The letter should be closely pursued).
l Extra precautions should be exercised in respect of those accounts which are opened
during last six months and/or transferred from another branch.
R. With a view to reducing the incidence of frauds in the Bank perpetrated through new
accounts.
l A cheque book should ordinarily be issued against the Bank's engraved requisition slip only.
R. This is insisted upon with a view to ensuring that the cheque book is issued to the right
person, and that no unauthorised / unscrupulous person obtains it by fraudulent means/
surreptitiously.
l Why has the revised procedure for transfer of Savings Bank, Current Accounts been
introduced?
R. It facilitates proper record-keeping and minimises the delays in transfer of accounts. It
also strengthens internal control on account opening forms and specimen signature cards
thereby obviating the chances of frauds/forgeries/manipulations.
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l Inoperative accounts (C.A./S.B.) are dealt with extra care.
R. With a view to exercising effective control over inoperative accounts & with a view to
minimising/obviating chances of frauds, forgeries, manipulations, etc.
l All debits to inoperative accounts should be thoroughly scrutinised and authorised by the
Manager of Div/Branch Manager.
R. In order to exercise extra caution regarding genuineness of signatures, undue delay in the
operations to prevent the possibility of frauds/forgeries and to establish the genuineness
of the transactions. [A letter (in the prescribed format) is sent to the depositor to reactivate
the account with a view to keeping personal touch with him.]
l In cases where the signatures of the drawer of the cheque are alleged/purported to be
forged, we obtain adequate number of photostat copies of the cheque before handing
over it to the police for necessary investigations. Why?
R. To have a proof in case the signatures on the cheque are obliterated/tampered with at a
later date by some unscrupulous person or the instrument is lost/misplaced by the police
during investigation.
l Nominee's signature is not obtained on the nomination form.
R. This is done to maintain secrecy as the account holder may not always be inclined to let
the nominee be aware of the nomination made by him. It also facilitates change of nomination
in case the depositor so desires at a later date without hindrance from the earlier nominee.
DIFFERENT TYPES OF DEPOSITORS:
l No account is be opened in the name of an undischarged bankrupt.
R. To safeguard the Bank from the possibility of litigation as his funds carry the risk of
attachment by official receiver/assignee until and unless he is discharged.
(The undischarged bankrupt is subject to number of disqualifications. His assets/liabilities
vest in the official receiver/assignee.)
l The Bank should persuade the account holders to open joint accounts with survivorship
benefits (or, with nomination facility).
R. To enable the survivors to avail of the balances immediately and easily (on the death of
either of them) without the production of legal representation or elongated procedures of
deceased settlement sans legal representation.
l A power of attorney must be definite and unconditional. It should not be provisional or
eventualities.
R. Because fulfilment/completion of the condition/purpose may automatically withdraw/
terminate/ revoke/ cancel the power of attorney without the Bank's knowledge thereby
landing the bank in serious trouble.
l Bank can set off the credit balances of trustee's personal account for an advance granted
to the trust.
R. A trustee is personally liable for the borrowings on the trust account (but the reverse is
not true).
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l On the death of an executor/administrator, a cheque issued on such an account is paid
even if the deceased is one of the joint signatories.
R. On the death of an executor/administrator, his powers are vested in the surviving executor/
administrator (as they are trustees of the estate of the deceased), unless otherwise provided
in the will or the letter of administration.
l As soon as the minor co-parcener attains majority, we obtain his signatures on previous J.
H.F. (Joint Hindu Family) Letter (COS-38).
R. To bind him for all the previous transactions done by the 'Karta' (during the minor's minority).
It also signifies his assent to the undertaking given by the major co-parceners.
l While opening an account in the name of a partnership firm, we obtain partnership letter
(COS37) even though a copy of partnership deed is submitted.
R. Bank's partnership letter empowers the partnership firms to open an account as they may
not have an implied authority to open a bank account in their deed. Moreover, the partners
undertake, to notify the bank of any change in the constitution of the firm. (All interim
transactions are protected till the bank is advised of the reconstitution).
l A minor may be allowed to be admitted to a firm.
R. Though the minor has no contractual capacity (as per Sec. 11 of Contract Act), he may be
admitted only for the benefits of the partnership with the consent of all partners: [Sec. 30(1)
of Indian Partnership Act, 1932]. He is not liable personally for the firm's obligations/
liabilities/debts/losses (but his share in the partnership property and the profit of the firm is
liable for these): Dharamvir v/s Jagannath & others : AIR 1968. Punjab 84.
l As soon as the minor partner attains majority, he should sign the existing partnership letter
in addition to a fresh partnership letter.
R. This is done with a view to obtaining his ratification of the previous transactions (transacted
during his minority).
l Whenever there is a change in the constitution of a firm, the relative bank account should
be closed and a fresh account opened in the name of the reconstituted firm.
R. This is done with a view to avoiding the application of the Rule in Clayton's Case against
the banker (incorporated in Sec. 61 of Indian Contract Act).
l A cheque payable to a partnership firm should not be accepted for credit of a private/
personal account of a partner without, the consent of the other partners.
R. Though the transaction is not prohibited by law, the failure to query the circumstances
under which the money of the principal is being credited to the account of an agent may
amount to negligence, and the bank may be held liable to the true owner of the cheque for
conversion: Bevan v/s National Bank Ltd. (1906), 23 Times LR 65.
l We do not insist upon introduction for opening of an account in the name of a private/
public limited company.
R. The certificate of incorporation (birth certificate) issued to the company by the office of the
concerned Registrar of companies proves the legal existence of the company.
200
l Bank calls for memorandum/articles of association while opening an account in the name
of a company.
R. To ascertain whether the company is authorised to deposit its moneys with the Bank and
to ascertain the powers of the natural persons behind the legal entity. This is KYC
requirement as per KYC, AML & CFT act.
l We dispose off all the credits if after opening the account the public limited company is
unable to obtain the "Certificate to Commence Business".
R. As per the provisions of the Companies Act, a public limited company does not get the
contractual capacity (legal entity) without obtaining the Certificate to Commence Business
form the concerned Registrar of Companies. (The contracts entered into by the promoters
of the company cannot be enforced at all if it goes into liquidation before commencement
of business.)
l We do not pay in cash the cheques drawn in favour of a company or their Managing Director,
General Manager/Branch Manager, etc.
R. It is difficult at the time of cash payment to know the validity of the authority for giving
discharge on behalf of the company. As such these are credited to the company's account
(Bank is the appropriate repository for cheques favouring companies). In the case of cash
payment of such cheques, the paying banker may be held liable to the company, i.e., the true
owner (and is deprived of the protection available to collecting banker u/s 131 of NI. Act)
[Cheques favouring companies should not be accepted for credit of director's private/
personal account. The director receives such cheques on behalf of the company.
l A cheque drawn by the director of a company can be paid even after his death if it is
otherwise in order.
R. Because the director was not a constituent for the Bank. The cheque was drawn by him
under an authority/mandate, i.e., in the representative capacity. (A company is a legal
entity, having perpetual succession, on whose behalf the cheque was drawn by the director.
Therefore, the death, insolvency or lunacy of the director do not affect it.)
l Cheque forms issued for drawings on company/public fund accounts must be payable to 'order.
R. Company's/Public Fund accounts are of fiduciary nature (i.e., like trust accounts) and usual
precautions should be observed, otherwise the Bank will be liable to the true owners of cheques
for conversion. (On public fund accounts, overdrafts, however temporary, are strictly prohibited.)
l Branches should not open the accounts of banks which are not established in their own
stations without prior reference to the respective controlling authority.
R. Other Banks may operate on such accounts by using our channel indiscriminately for
affording remittance facilities to their constituents (also to discourage the abuse of
remittance/discounting facilities).
l Cheques drawn by the customers are not paid after the receipt of the notice of their death.
R. Agency and mandates are terminated/withdrawn/revoked/cancelled on the death of the
principal as per Sec. 201 of the Indian Contract Act.
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CURRENT ACCOUNTS
l We do not record partnership letter, Joint Hindu Family letters (COS-38), memorandum
and articles of association in the Power of Attorney Register.
R. Because these documents remain in the Bank's possession. Only those documents are
entered in P.A. Register which are returned back after noting the necessary details/extracts.
l Why are ledger folio charges (account-keeping charges) levied on current accounts where
balances are unremunetative?
R. To compensate the Bank for the cost of rendering the services and the time/labour involved
in the maintenance of the accounts. Also to discourage the customers from violating C.A.
Rules regarding minimum balance.
SAVINGS BANK ACCOUNTS:
l Why are the restrictions imposed on S.B. withdrawals?
R. To discourage the operations on S.B. accounts like current accounts. The primary object
of maintaining a Savings Bank account is to inculcate/encourage the habit of savings!
thrift [whereas current accounts are opened for business purposes].
TERM DEPOSITS:
l Why is a T.D.R. not transferable by endorsement and delivery?
R. It is merely a receipt. It is neither an order instrument not a negotiable instrument. The
issuing branch has a paramount lien on it. (The payment of a T.D.R. to some third person
must be duly authorised by depositor through a suitably worded letter of authority. This
letter should accompany the T.D.R. duly discharged on revenue stamps of requisite value.
Separate letter of authority is necessary. Mere handing over the receipt is not enough
under Sec. 130 of Transfer of Property Act.]
l Prescribed penalty is levied on term deposits which are paid before maturity. Why?
R. With a view to discouraging the depositors from demanding premature payment as these
are not demand deposits and also to recover the operational costs to some extent.
l In the case of payment of a TDR before maturity standing in joint names payable to all
depositors jointly, the receipt should be duly discharged by all the depositors unless specific
mandate is obtained on the contrary at the time of receipt of the money.
R. This is necessary in terms of the provisions of Sec. 45 of Indian Contract Act dealing with
the deposit accounts in joint names.
l We renew (for the original period) the TDRs on due dates even if there are no instructions
from the depositors.
R. Because otherwise no interest is paid on the deposit after the maturity date ans as a
matter of good customer orientation/centricity.
l It is at the Bank's (sole, absolute and unqualified/unconditional) discretion to allow interest
for the overdue period of a TDR.
R. As per the terms of the contract, after the date of maturity the time deposit becomes the
current (demand) liability of the Bank and is payable on demand.
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l In the computerised environment also, the Term Deposits Interest Account is tested.
R. With a view to checking the accuracy/correctness of monthly provisions made and to adjust
short/excess provisions made so as to reflect/depict the true position of the Bank's liability
towards the depositors. Also to detect any unauthorised/fraudulent payment.
l The Annuity Deposit Scheme had not been very popular amongst depositors.
R. Because the scheme suffered from the disadvantage of complete erosion of both principal
and interest at the end of the maturity period.
CHEQUES IN LAW & PRACTICE:
l Cheques dated prior to the death of a constituent are not paid after the receipt of notice of
death (except the cheques purchased as demand drafts).
R. The contract to honour the cheques is terminated/cancelled/revoked/withdrawn after the death
of account holder and the amount standing at the credit of the account becomes payable to
his legal heirs/representatives. His mandates also cease to operate after the death.
l Changing of a bearer cheque into an order cheque does not require drawer's full signatures
(but the reverse is not true). Why?
R. Changing of a bearer cheque into an order cheque is not a material alteration. [A material
alteration of a negotiable instrument without the drawer's authentication renders it void
(subject to certain exceptions) Sec. 87, 89 of N.I. Act].
l When a cheque is returned with the remark "Drawer's signatures differ", a letter to this
effect is also required to be sent to the drawer (Greenwood v/s Martins Bank Ltd. (1932)
AER 318].
R. In the case of forgery of the drawer's signature by some unscrupulous person with an
ulterior motive, the drawer will inform the Bank, otherwise he will draw the cheques in
conformity with the signatures on the Bank's record.
l A cheque was returned with the remark 'Effects not cleared, please present again'. It is
now presented again. If the funds in the account are insufficient to meet the cheque, it
should be returned for the reason 'Insufficient Funds'.
R. 'Please present again' is not an obligation/ responsibility/ commitment/ Undertaking/
assurance on the part of paying banker to honour the cheque on re-presentation. It should
also not be construed/considered as marking/certification of the cheque.
l Can crossed cheques be encashed?
R. No. As per Sec. 126 of N.l. Act, payment of a cheque crossed generally cannot be made
otherwise than to a banker. Further, the payment of a cheque crossed specially cannot be
made otherwise than to the banker to whom it is crossed or his agent for collection (being
a banker).
l A cheque crossed 'Not Negotiable' can be transferred by endorsement and delivery.
R. Because the transferability of a cheque is not affected by such a crossing. In such cases,
the transferee does not get a better title than that of transferor: Sec. 130 of N.I. Act.
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l All account payee cheques should be credited/collected only to the account of the payee.
R. The mandate of the drawer is clear in such cases. Moreover, any deviation is prohibited by
the R.B.I.
l We can allow payment of a cheque in cash after business hours only if it is presented by
the drawer himself.
R. As the drawer cannot countermand (stop) the payment of the cheque in such cases.
l Cheques whose crossing has been opened are paid to the drawer only or his known agent.
R. Crossing of a cheque is not a material alteration but opening of crossing is a material alteration.
Payment of such a cheque may put us in uncalled trouble if subsequently it transpires that the
crossing was opened by an unscrupulous person by forging the drawer's signature.
l The payee of a cheque cannot stop its payment.
R. The Bank is under an obligation to comply with the instructions as per the relationship (of
debtor and creditor), and that no other instructions can be honoured (because of privity of
contract is between the drawer and the drawee banker). In the absence of instructions
from the drawer, the Bank may be held responsible for the wrongful dishonour of the cheque.
l Dishonoured cheques do not require noting and protesting.
R. When a cheque is dishonoured by the drawee bank, a definite answer is given on an
objection memo enclosed thereto to enable the payee/endorsee/holder to take suitable
action against the drawer. Negotiable instruments are noted and protested only when the
reason for dishonour is not forthcoming.
l When cheques are returned to the constituent, the Bank's crossing stamp, clearing stamp
and S.C./D.D. numbers, if any, must be cancelled.
R. This is done so that the Bank may not incur any liability as an agent for collection of the instrument.
GOVERNMENT BUSINESS:
l Why has the revised procedure for reporting and settlement of State Govt. transactions
been introduced?
R. For quick settlement of funds on account of State Govt. transactions and prompt
reconciliation of discrepancies pointed out from time by the Government authorities thereby
increasing the profitability.
l Separate fax messages are sent to Govt. Accounts Department, Navi Mumbai when the
difference between Government receipts and payments in respect of Central/CBEC
(revenue transactions/CBDT (revenue transactions) and UMEA transactions works out of
Rs. I Lac or more.
R. To avoid foss of interest to the Bank on its accounts with the R.B.l. by immediate funds settlement.
l We do not charge any commission on the outstation cheques received from the Government
departments for credit of Government accounts.
R. Remuneration is paid to the Bank on receipts and payments both (of the Government
transactions).
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l If a cheque tendered by an assessee for credit of Government account is drawn on third-
party's account, we obtain consent letter from the drawer (of the cheque).
R. To know the intention of the drawer (of the cheque) that the cheque was issued by him for
payment of amount due by the assessee to the Government.
l In the case of dishonour of cheques tendered in payment of Government dues, we do not
return the challans accompanied by them.
R. To obviate the possibilities of misutilisation of the challans by~assessees.t (Only the
dishonoured cheque should be returned to the tenderer, and the accompanying challans
destroyed. A proper record of such cheques and challans should be maintained under
authentication of an official not below the rank of accountant.)
l Government transactions should be reported/settled promptly.
R. The delays affect the Bank's profitability adversely. Moreover, suitable action is taken and
staff accountability examined/fixed at repeatedly defaulting branches.
l Under no circumstances, Govt. cheques should be paid beyond the LC (letter of credit) limit.
R. The deviation is totally irregular. Branch Managers are held personally responsible for any
lapse in this regard.
l The net pension amount should be credited to the pensioner's accounts on the due dates.
R. With a view to obviating the difficulties experienced by the pensioners as also to facilitate
rendering of better customer services.
BANK DRAFTS/lOIs:
l Why was revised procedure for Bank drafts introduced?
R. (i) To overcome the problems of balancing and reconciliation, etc., (ii) to reflect the Bank's
liability to various purchasers (applicants) of drafts, (iii) to bring in simplicity to result in
greater operational convenience and ease, (iv) for early detection of frauds.
l The validity period of the Bank drafts/lOIs/Banker's cheques is now restricted by RBI to
three months.
R. To avoid the possibility of circulation of some drafts/lOIs for an indefinite period thereby
creating accounting problems to the Bank.
l The Bank cannot issue a demand draft (or, an IOI) payable to a bearer. Why?
R. The issuance of a demand draft (or, an IOI) payable to a bearer amounts to issuance of a
Bank Note (i.e., currency). This is, therefore, prohibited under Section 31 of the RBI Act.
1934. Its infringement is an offence u/s 58-ibid.
l A receipt on revenue stamps of Re. 11- (if the amount of the draft/lOI exceeds Rs. 5,000/)
IS obtained from the applicant on the reverse of the draft/lOl the payment of which is made
by cancellation. Why?
R. Payment of draft/lOI by cancellation represents full and final settlement of the payee's claim
with the purchaser and the draft/lOl ceases to be a negotiable instrument and takes the
form of a receipt.
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l The payee's written consent is necessary while making payment of a duplicate draft/IOI by
cancellation to the purchaser.
R. In order to confirm that the payee's claim has been settled otherwise with the purchaser
e.g. by separate payment. (Once the draft/lOI is issued, the bank becomes the trustee of
the payee.) Also to avail of legal protection in the case of any dispute.
l Now the printed number on the bank draft/lOl form (security form) for issue of duplicate
draft is not scored out; moreover, the original number of (lost) draft is also entered on that form.
R. As the computer matches the entries on the basis of original draft numbers already fed into it.
BANKER'S CHEQUES:
l The Bank's usual charges for issuing banker's cheques should be levied even to the
government deptts.
R. The banker's cheques are issued for local payments and do not fall under the purview of
the RBI Remittance Facilities Scheme.
BILLS:
l Interest is paid to customers for delayed collection of cheques/bills. Why?
R. This ensures expeditious collection of outstation cheques/bills and improves upon
operational efficiency besides better public image of the Bank. The minimum amount of
compensation is now Rs 25.00.
l Why are the handling charges/token charges recovered on collection instruments/cheques
returned unpaid?
R. With a view to cultivating business ethics and penalising unsound banking practice and to
meet cost of handling of such instruments, these charges are levied.
l The acknowledgement and payment advice of demand drafts purchased should be
despatched promptly.
R. The delayed despatch causes complaints for non-return of unpaid instruments within a
reasonable time. Moreover, it exposes the Bank to frauds. There are chances of the
negotiated instruments getting lost in postal transit.
l In the case of purchase/discount of a bill, a notice (in COS-329) regarding the Bank's lien
over the goods is sent to the railway authorities (GENICU5I/1 988), but no such notice is
sent for bills received for collection.
R. In the case of purchase/discount, the Bank (holder for value) has valuable interest in the
goods covered under the R.R. till the bill is paid, whereas in the later case, the Bank acts
only as a collecting agent. Also to obviate the danger of the drawee taking delivery of the
goods/consignment on the strength of indemnity. (In that case, the bank shall have to
approach the Court of law for a decree against the lodger of the bill, who may by that time,
have become insolvent/insane or dead.)
l Before returning the unpaid bills to the lodgers or the drawers, these must be re-endorsed
with the words "without recourse to S.B.I."
R. To enable the consignor to take the delivery of the goods from the transporters and to
absolve the Bank from any liability as an endorser of the bill. (All the parties to a bill of
exchange are co-obligants to the holder of such an instrument: Sec. 36 of N.l. Act.)
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SECURITIES & SAFE DEPOSITS:
l Safe custody receipt (005-138) must be produced at the time of taking delivery of the
securities, while the memorandum of securities (COS-339) is not insisted upon at the time
of delivery.
R. The safe custody receipt is a receipt which is issued against deposit of securities with the
Bank while memorandum of securities is merely an acknowledgement of securities.
l The Bank can collect interest on Government securities lodged with it for credit of the
deceased constituents overdraft account.
R. When there is a personal interest in securities lodged with the agent (i.e., agency coupled
with interest), contract/agency is not terminated on the death of the principal: Sec. 202 of
Indian Contract Act.
[In other cases, agency is terminated on the death of the constituent: Sec. 201 ibid].
l An article tendered by a constituent for safe deposit must be sealed with the constituent's
own recognizable seal.
R. It the article is sealed with Bank's seal, some unscrupulous person may remove the contents
surreptitiously. Moreover, at the time of delivery, the customer may contend that the Bank
has tampered with the contents of the packet/box and resealed it [with the Bank's seal].
l Articles in safe custody/deposit should be examined and turned over periodically. Why?
R. In order to guard against damage by fungus/white ants, other insects and dampness, and
to discharge our responsibility of a bailee: Sec. 151 of Indian Contract Act.
l 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.
R. As per Sec. 151 of Indian Contract Act, a bailee must take as much care of baiIed articles
as a reasonable man of ordinary prudence would take care of his own articles of the same
bulk, quality and value (whether intrinsic or not) as the goods bailed (against destruction,
deterioration or un-authorised interference by outsiders).
S.D. LOCKERS:
l All persons who intend to hire safe deposit lockers are required to open either a Current
Account or Savings Bank account if they do not already maintain such an account.
R. The introduction/KYC check helps in establishing the person's bonafides (genuineness)/
credibility/ respectability. This also serves the purpose of obtaining an authorisation (in
COS-126) to debit the account for recovery of yearly rentals as and when due.
l RBI have drawn up the guidelines for allotment of S.D. lockers. Why?
R. To ensure equitable distribution of lockers to needy persons desirous of availing such
facilities from banks. Insistence on term deposits before considering requests for allotment
of lockers is discriminatory.
207
l We do not rent out lockers in the names of the firms, companies, etc.
R. Firm or company is not supposed to keep the valuables except the documents, etc., which
can be kept in safe custody with the Bank.
l The Bank interchanges the lock of the surrendered locker with that of another vacant locker
before being let out to another hirer.
R. To obviate the possibility of the use of duplicate keys by an earlier unscrupulous hirer with
an ulterior motive.
l Articles in safe deposit lockers are not delivered against succession certificate.
R. A succession certificate does not cover articles in the Bank's locker. It covers only the
debts due to the deceased and transferable securities belonging to him. (The contents of
S.D. lockers are not securities within the definition given in Indian Succession Act.)
INTERNATIONAL BANKING :
l Why are forward contracts fixed?
R. To avoid the risk of fluctuations in the exchange rates at a future date.
l A' and 'B' category branches advise Foreign Department the figures of large sales and
purchases in foreign currencies by fax/trunk telephone.
R. To enable F.D., Kolkata to make cover operations (also known as 'currency operations')
immediately (i.e., to match the sales and purchases and maintain balances in foreign
currencies at the optimum level). This is done with a view to utilising the foreign currency
holding for getting full benefits of fluctuations in exchange rates.
l Bank does not negotiate/transact foreign exchange transactions for large amounts on
Saturdays.
R. London Money Market remains closed on Saturdays and Sundays. Therefore, it would be
difficult for the Bank to arrange for proper cover through RBI.
l Why has revised procedure been introduced in respect of Bills of Exchange (Foreign
Currency Notes) Account?
R. To Indicate separately in General Ledger the 'assets' represented by the holdings of foreign
currency notes at the branch (authorised to hold the stocks of F.C. notes).
l We must insist for a full set of a bill of lading (all negotiable copies).
R. A B.L. is a mercantile document of title to goods [Sec. 2(4) of Sale of Goods Act]. The
delivery of goods/consignment may be taken from the shipping company on production/
surrender of any part of the set.
l Revised Procedure for Letters of Credit (import) has been introduced w.e.f. 01-07-1988.
R. To reveal the precise liability of the Bank on LC business activity at any given point of time.
The system also enables the branches and the controlling authorities to have better/ effective
control on this activity. It also facilitates reporting of precise figures by the branches.
208
l FCNB deposits are not accepted for longer periods.
R. To minimise the risk in regard to such deposits. The interest rates on FCNB deposits are
linked to interest rates in the international money markets and are subject to rapid and
frequent changes.
l Direct rates are now quoted for all transactions in foreign currency.
R. This enables the customers to readily know the rupee equivalent receivable or payable by
them for each unit of foreign currency and does not necessitate intricate calculations (as in
the case of indirect rates).
l Bank should exercise greater caution while confirming an export letter of credit than while
merely advising it.
R. While advising letter of credit, the bank stipulates that the advice is being made without
any risk or engagement on its part. Whereas while confirming an export L.C., the bank
guarantees payment to the beneficiary additionally and independently of the opening bank.
l Operational restrictions are greater in respect of NRE accounts than in case of NRO
accounts.
R. NRE accounts in comparison to NRO accounts offer additional benefits like tax incentives,
facility of repatriation, higher interest rates, etc. Restrictions are imposed to ensure that
such benefits are not misutilised. Moreover, funding in respect of an NRE account should
always be from external sources unlike NRO accounts.
l Negotiation of export bills is sometimes done 'under reserve'.
R. In cases where the export bills tendered to the bank for negotiation contain certain minor
discrepancies which cannot be rectified, the Bank negotiates the bills on the strength of a
stamped letter of indemnity from the exporter (under reserve). Thus, the bank reserves the
right to debit the exporter's account in case payment abroad is not forthcoming.
l Commission is realised in case of export bills denominated in Indian rupees but not if they
are drawn in foreign currency.
R. Because Bank's margin of profit is loaded in the exchange rates applicable to export bills
denominated in foreign currency. Whereas exchange rates are not used for export bills
drawn in Indian rupees. Therefore, profits are realised by way of commission.
l Element of risk is less in case of advances to an exporter under a red clause LC than in
case of normal credit.
R. An export packing credit advance is granted by the negotiating bank at its own risk and
responsibility whereas advances under a red clause LC are granted by the negotiating
bank at the instance, risk and responsibility of the opening bank.
ADVANCES: GENERAL:
l We use form COS-26 for furnishing status reports on our constituents to other banks.
R. The form COS-26 is designed in such a manner that the bank and its officers are absolved
of the liability in furnishing such information to fellow bankers, i.e., the report is superimposed
with the rider 'without responsibility'.
209
l IBA has standardised the procedure for exchange of credit information amongst the banks.
R. With a view to bringing about uniformity in the system of exchange of information amongst
banks on credit standing of the customers. Also, to ensure that the bank seeking the
information receives a fairly good picture of the state of affairs of the customers.
l The branches were required to seek prior approval of the appropriate authority before
permitting some deviation/relaxation in the prescribed norms.
R. With a view to ensuring that the credit made available is need-based and essential for
meeting the borrower's current level of production (and not for speculative build-up of current
assets, etc.)
l IRAC norms have been introduced for all types of advances.
R. The IRAC system indicates the quality/health of the individual advances on a regular basis.
This makes the control/follow-up/supervision of the advances more effective both at the
branch and at the controlling office.
l IRAC norms should be properly understood and correctly implemented.
R. The implementation of the new guidelines on asset classification, income recognition and
provisioning makes a vital impact on the Bank's profits.
l Goods are insured to the extent of their full market value. Why?
R. In the case of under-insurance, the insurable interest of the lending bank is affected
adversely by the operation of 'Average Clause'.
l The due (expiry) dates of insurance policies should be properly diarised.
R. It is not obligatory on part of the insurance company to send the notices of renewals of
policy on or before its expiry. Renewals must be effected in ti~ne. Any delay through
negligence has sometimes disastrous consequences.
l The Bank charges a very low rate of interest on advances granted under DIR. scheme.
R. These advances are granted to weaker sections of the society for their upliftment. Moreover,
the loss to the Bank is negligible in view of the small amount involved. The low rate is
compensated by the levy of higher rates of interest on large borrowers who have the capacity
to pay interest at higher rates.
l Lien-cum-Free Access Letter is obtained from the landlords of rented godowns/premises.
R. To have the Bank's prior lien on the goods and machinery stored/installed therein in the
case of default in payment of the loan amount.
l A total reliance on balance sheet analysis alone is not desirable while arriving at a conclusion
regarding the financial health of a unit.
R. This is because a unit's balance sheet indicates the state of affairs as on a specific date
and not over a period of time. It is capable of being window-dressed for the sake of
impressing the analyst. It does not take into account non-monetary factors (off-balance
sheet items) like labour trouble, market conditions, etc. which influence a unit's performance
to a great extent.
210
l The Bank is keen to increase its share of miscellaneous and non-fund based business.
R. As these are quasi-credit facilities and non-fund based in nature, risks involved are
comparatively less and operational costs are lower. Earnings by way of commission are
substantial.
l Credit appraisal is necessary even while extending non-fund-based facilities to customers.
R. Non-fund-based facilities to customers are in the nature of contingent liabilities for the
Bank. In such cases, the Bank may be called upon to pay the amount in the event of the
customers' failure to do so.
DIFFERENT TYPES OF ADVANCES:
l In the case of demand loan accounts, further withdrawals are not permitted.
R. Additional debits are not covered by the Demand Promissory (D.P) Note which is executed
for the loan amount as the value of D.P Note gets reduced to the extent of credits made in
the account. Moreover, the continuity clause is not embodied in the case of demand loans.
l It is important for the Bank to carefully observe the turnover in the Cash Credit accounts.
R. It gives an idea to the Bank as to whether the unit is functioning satisfactorily or not. [The
borrowers are expected to route all their sales/purchases transactions through their Cash
Credit account as per the terms and conditions (covenants) of the sanction].
l Why are the deferred payment guarantees issued in cases where the Bank can grant term
loans?
R. In some cases, the term loans do not serve the credit needs of borrowing concern. In
DPG., the purchaser acquires fixed assets without immediate outflow of funds. Moreover,
the Bank's lendable money resources do not get blocked in issuing DPGs in favour of the
exporters of capital goods (fixed assets).
DIFFERENT TYPES OF BORROWERS:
l We obtain the consent of the husband of a married lady who is dependent on him before
granting her clean loans.
R. In order to bind the husband for the advance granted to the wife, as the marriage itself
does not create a valid agency of agent and principal (as the partnership does. It is preferable
to obtain the guarantee of husband in such cases).
l Why do we not insist on the registration of a partnership firm who desires to borrow from us?
R. Non-registration debars a firm from suing the other parties (firm's debtors/partners) but
does not affect the rights of a lender/banker/outsider: Sec. 69 of the Partnership Act.
(However, it is preferable to grant advances to registered partnership firms.)
l In the case of death/retirement/insolvency/lunacy of a partner, further operations on the
cash credit account of the partnership firm are stopped.
R. In the absence of such a step, the Rule in Clayton's Case (incorporated in Sec. 61 of
Indian Contract Act) will operate to the detriment/disadvantage of the lending bank if a
claim is preferred against the estate of the deceased: Devaynes v/s Noble (1816), (I Meg
529, 572).
211
DIFFERENT MODES OF CREATING CHARGE:
l There is no need of physical/manual delivery of goods for a valid contract of pledge.
R. Delivery of goods can be completed by doing anything which has the legal effect of putting
the goods in possession of the pledgee. (The possession may be symbolic/constructive
e.g. putting the Bank's lock on the factory gates).
l Bank cannot sell the goods pledged to it without reasonable notice, even when the
repayment is not forthcoming and advance is called up.
R. In terms of Section 176 of the Indian Contract Act, a reasonable notice to sell the goods
must be given to the borrowers (pledger).
l We cannot use the goods pledged to us.
R. Goods pledged to us are meant as security for repayment of debt and are required to be
returned to the pledger as soon as the debt is repaid.
l Why do we obtain periodically the stock statements in case of hypothecation advances?
R. To ensure that the outstandings in the account are always fully covered by the advance
value of the goods hypothecated to the Bank as security for the advance, and that there is
health/regular turnover of stocks, etc. Also that there are no overdue/sticky bills.
l A search report (for the prescribed period) on the mortgagor's immovable property is
obtained from the Bank's advocate, in the prescribed format.
R. To ascertain whether the property is free from encumbrances/charges/doubts, and has a
clear, absolute, transferable marketable, legal, valid, perfect, undisputed and alienable title.
l While taking an equitable mortgage (at the time of fresh sanction/enhancement), the
mortgagor (except a company) is required to send a separate confirmatory letter (in the
prescribed form).
R. In order to secure an independent legal proof that the mortgagor had deposited at the notified
centre the title deeds of the immovable property with intention to create an equitable mortgage.
l The Bank does not accept an equitable mortgage of the land/building situated in
cantonmet areas.
R. An equitable mortgage of land/building situated in cantonment areas is not recognised as
a valid mortgage as per the Cantonment Board Rules.
l After creation of equitable mortgage at the notified centre, the title deeds are now returned
to financing branch situated at the non-notified centre.
R. It facilitates the verification of the title deeds by the inspecting officials. Moreover, there is
no legal requirement that the title deeds should be kept at the notified centres only after
creation of equitable mortgage.
GOLD LOANS:
l Advances against gold ornaments are granted to properly introduced persons.
R. The Bank cannot enforce its right to recover the advance by selling the ornaments by
public auction/private treaty in case the borrower is not a bonafide/rightful owner of the
ornaments pledged to the Bank as security for the advance (as the Bank's title to the
ornaments is defective in such cases).
212
l We should not grant advances against the security of gold ornaments bearing the initials/
name of a third person other than the borrower (absolute owner).
R. In such cases, the Bank's title to the ornaments will be defective and the advance will
become unsecured (clean).
l Advances against gold ornaments are not granted freely by banks.
R. These advances are not of a self-liquidating nature. Moreover, in some cases, these are
not repaid even after two or three years.
l A Draft Note is obtained from the borrower in addition to the ornaments pledged to the Bank.
R. If the sale proceeds (after auction expenses) of the ornaments pledged to the Bank [as
security for the advance] are inadequate to cover the entire outstandings in the account,
we can sue the borrower for recovery of the shortfall on the strength of the D.P. Note (provided
it is current/enforceable).
l Delivery of the gold ornaments held as security for an advance (and S.D. articles and
contents of S.D. lockers) is not made on the strength of Succession Certificate (except in
the States of UP. and M.P.)
R. As per Indian Succession Act (Sec. 370), only the debts due to the deceased (i.e., credit
balances) and transferable securities belonging to him are covered under Succession
Certificate (except in the States of U.P. and M.P., as per the decisions given by Allahabad
and M.P. High Courts respectively).
ADVANCES AGAINST TERM DEPOSITS:
l In the normal circumstances, we should not grant advances against TDRs issued by other banks.
R. Other banks can refuse to mark our lien on the term deposit because T.D. is a debt by the
issuing bank to its depositor. The issuing bank has a first and paramount lien on it and can
exercise the right of set-off also.
l While granting an advance against TDRs, security delivery letter (in the prescribed form)
is obtained from the borrowers.
R. Otherwise the Bank cannot create a valid pledge on the borrower's securities.
l Undated (stamped) discharge is taken on the Bank's TDRs accepted as security (primary/
collateral) for advances.
R. A T.D.R. is repayable on maturity. A dated discharge given prior to maturity shall be declared
ultra vires. (Another undated and unstamped discharge of the depositor is taken by the
side of stamped discharge to prove the signature in cases where the revenue stamp is
lost/removed/detached accidentally/unintentionally while in the Bank's custody).
l TDRs/STDRs (in physical form), against which loans have been granted, must be held in
joint custody with Cash Officer.
R. As the TDRs/STDRs (in physical form) pledged to the Bank are already discharged, any
unscrupulous person can fraudulently encash the TDRs/STDRs to the detriment of the
Bank's interests.
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l We require joint discharge (stamped, undated) in the case of advances against TDRs
standing in the joint names except those issued under 'F or S', I or S style.
R. During the currency of the deposit, every depositor (joint account holder) has a right to
revoke the mandate given to the Bank at the time of opening of the account.
l Advances against the security of time deposits under the style 'Former or Survivor' can be
granted to the former during his life-time without the consent of other party to the deposit.
R. In such cases, the money deposited with the Bank actually belongs to the 'former' (the first
depositor) and passes on to the survivor (second depositor) only on the death of the first one.
l In most of the cases, the rate of interest on advances against T.D.Rs. is not linked with
State Bank Base Rate.
R. State Bank Base Rate fluctuates from time to time but the rate of interest allowed on a
T.D.R. is fixed (contracted) and cannot be changed during the currency of the deposit.
l Interest on loans against TDRs of any maturity period which are withdrawn before a term
of 15 days, should be charged @ applicable to clean overdrafts.
R. As per the RBI's instructions, such an advance cannot be treated as an advance against
term deposit.
l In the case of advances against balances in R.D. accounts, the practice of retaining the
passbook at the branch has been dispensed with.
R. It facilitates the depositors to be regular in depositing monthly instalments in time in the
R.D. account against which an advance has been sanctioned to him.
ADVANCES AGAINST GOVT. SECURITIES:
l Margins have been raised on advances against NSCs.
R. Due to upward revision of interest rates from time to time and re-introduction of interest tax.
ADVANCES AGAINST LIC POLICIES:
l Only overdraft facility is granted against life insurance policies.
R. Payment is allowed by L.I.C. on maturity of policy or on the death of the insured, whichever
is earlier. Moreover, LIC policies are not specified securities as per the S.B.I. Act (General
Regulation No. 61).
l Assignment of insurance policy should be got registered with L.I.C.
R. Because the insurance company is not bound by a mere assignment (unregistered) on the
back of the policy.
ADVANCES AGAINST COMPANY SHARES:
l Advances are generally not granted against shares of private limited companies.
R. Shares of Pvt. Ltd. companies are generally non-transferable (by the very definition of a
private company: Sec. 3 of Indian Companies Act, 1956). Therefore, the lending bank shall
not be in a position to have the assignment in its favour. Moreover, these are not quoted in
the share market. Therefore, it is not possible to ascertain their present market value.
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l Advances are not granted against partly-paid shares of a company.
R. The Bank may have to pay the unpaid calls made by the company or the liquidator in order
to avoid the forfeiture of such shares (or otherwise the banker will have to sell out the
shares possibly at a reduced/depreciated price). Moreover, the Bank shall be liable for
the unpaid balance in case of liquidation of the company. R.B.l.'s prior permission is also
necessary while granting such advances. (The uncalled portion of shares is a contingent/
potential liability for the lending banker).
l The Bank does not grant advances against its own shares.
R. Restricted under Sec. 20 of the Banking Regulation Act as these advances amount to
depletion/reduction in the financing bank's capital.
l Advances against the shares of a company are granted in the form of overdraft only.
R. Due to fluctuations in rates quoted in stock exchange. Moreover, limited liability company
shares are unspecified securities as per the S.B.I. Act (General Regulation No.61).
l The shares accepted as security for an advance are not endorsed in the Bank's favour.
R. The shares of the companies are not transferable by endorsement and delivery. Their
transfer is done by signing a duly stamped undated transfer deed only.
GOVT.-SPONSORED SCHEMES:
l In case of Govt.-sponsored Schemes, purchase of assets out of loans should be made
through a Purchase Committee.
R. This is done to ensure uniformity and standardisation of costs and quality. This also prevents
misutilisation of funds and helps in reducing the Bank's operational costs.
l Identification of beneficiaries under NRLM is not being done by the branch staff.
R. Branch staff alone cannot be in a position to identify NRLM beneficiaries from amongst
the people living below the poverty line. Hence this task is entrusted to a committee
consisting of B.D.O., etc. to ensure a proper choice of beneficiaries.
AGRICULTURAL FINANCE:
l Banks have adopted Service Area Approach.*
R. To create integrated and harmonious development and to finance maximum number of
farmers in a compact area (i.e., to avoid scattered lendings and overlapping of finance by
two or more banks). Also for ensuring effective supervision over the use of bank loans by
the borrowers.
l Photographs are obtained from all the borrowers (literates/illiterates) financed under
Agricultural Market Segment (irrespective of the amount of advance).
R. To facilitate the field staff in recognising the borrowers.
l A term loan for the purchase of a tractor is granted for a maximum period of 9 years.
R. The machine is likely to depreciate completely over a period of 9 years without leaving
sufficient resale value to cover the Bank dues. Moreover, the surplus generated by the use
of the tractor(productive lifespan) is sufficient to repay the advance within this period.
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l Inspection of agricultural advances should be more 'farmer-oriented' rather than farm-
oriented'.
R. In a given locale/condition, crops and farm lands are usually similar, and mere farm-oriented
inspection is not very purposeful. It is more useful to be in touch with individual farmers in
order to understand their problems, credit requirements and repayment capacity. This
also ensures better supervision, follow-up, recovery and revival.
l Agricultural advances should be based on the principle of 'unit costs' and not 'asset-based'.
R. Agricultural finance based on mere creation of assets does not always result in continuous
generation of income throughout the year (as for example in the case of milch cattle).
Therefore, finance is made by taking into account the cost of an economically viable unit of
assets resulting in steady income accruals as per the NABARD norms.
l Repayment schedule for agricultural advances varies according to the nature of the
crops grown.
R. Agricultural loans are to be repaid out of the surpIus, is available to the borrowers after
harvesting/marketing of crops. Since the harvesting periods vary according to the nature
of crops grown, repayment schedules also vary accordingly.
l Interest is charged on loans granted to PACS/FSS/LAMPS at a lower rate than the rate
charged under direct finance.
R. To enable the societies to charge interest to their borrower-members at the rate charged
by banks under direct finance. Also to keep a margin to cover their (societies')
operational costs.
l Agricultural advances under NABARD approved schemes are preferred by the Bank.
R. All NABARD schemes are formulated on the basis of exploitation of available local
resources. These are in line with the national plans, policies and priorities. Moreover, the
refinance facilities granted by NABARD enable the Bank to recycle the funds and avoid
resources constraints.
S.M.E. ADVANCES:
l Why is review/renewal exercise taken up in the case of working capital advances?
R. Review/renewal of working capital advances is one of the major devices for assessing the
actual need-based credit requirements of the borrowing units (i.e., it enables the lending
banker to enhance/reduce/suitably tailor the credit limits). It is one of the major criteria for
assessing credit management in the banks also.
l Undated transfer form/sale letter is obtained in duplicate (in the revised format) in the case
of vehicle advances.
R. The undated form enables the Bank for transfer/sale of the hypothecated vehicle once its
possession is taken, without the intervention of the transport operator.
l A certificate regarding the registration of the bank's hypothecation charge on the vehicle
financed is obtained from concerned R.T.O.
R. To safeguard against surreptitious sale and transfer of the vehicle by the unscrupulous
borrower without liquidating the Banks dues.
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BANK GUARANTEES:
l The margins on (letters of credit and) bank guarantees should not be fixed in an ad-hoc manner.
R. The margins depend upon the applicant's means, resources, nature of goods imported,
other facilities enjoyed etc.
l Why has Revised Procedure for Bank Guarantees been introduced?
R. In the wake of significant growth in the guarantee business coupled with many incidences
of frauds, stricter control on this business was considered necessary. Moreover, the revised
system also takes care of contingent liabilities of the Bank on an on-going basis.
FINANCIAL STATEMENTS:
l The borrowing companies should submit the audited balance sheets at the earliest.
R. The companies are required to seek an extension of time from the concerned Registrar of
Companies if audited accounts are not approved by the share-holders at the annual general
meeting within 6 months.
DOCUMENTATION:
l Opinion report is not compiled on a limited liability company.
R. Analysis of the balance sheet gives a complete picture of the financial position of the company.
l We should invariably obtain debit balance confirmation (in revised COS-48) on revenue
stamps of rupee one in the case of Cash Credit accounts, etc.
R. This serves as an acknowledgment of debt and extends the period of limitation for a further
period of three years from the date of the balance confirmation : Sec. 18 of Indian Limitation
Act, 1963.
l Vernacular signatures on agreement forms are not verified.
R. If verified, then the signatures of the verifying official shall become part of execution of the
document. Further, if the agreement form is witnessed at the time of execution, it becomes
a bond and attracts ad vaforem [according to value (and not ad hoc)] stamp duty, as per
the provisions of Stamp Act.
l When a clean demand loan is guaranteed by a third-party (guarantor), the D.P. Note (in
COS-228) is executed by the borrower in favour of the guarantor and endorsed by the later
in favour of the Bank.
R. In such a case, there is no separate agreement to bind the guarantor. To make the guarantor
jointly/concurrently liable with borrower. This enables the Bank to sue both the parties.
l Form COS-245 is obtained in the case of advances against the security of the assets
belonging to a company.
R. It is an undertaking (stamped as an agreement) obtained from the borrowing company
for not creating further charge, mortgage, lien or encumbrance over its properties
(movable and immovable) and assets (including uncalled capital), without the Bank's
specific written consent.
217
l D. P. Notes are not obtained in the case of overdrafts on current accounts.
R. Overdrafts are granted for temporary accommodation. (Request letter incorporating the
rate of interest and repayment period serves the purpose.)
l Additional clauses were included in the deed of guarantee AB-2.
R. Such an addition was made to strengthen the Bank's position for recourse against the
guarantor(s) whenever revival letter had been obtained from the borrower(s) alone but no
acknowledgment could be obtained from the guarantor(s) despite all possible efforts.
l In the preamble to the revised documents, the name of the financing branch is not required
to be mentioned.
R. This is done in order to facilitate transfer of borrowal accounts from one branch to another
in case of need without obtaining a fresh set of documents. It also facilitates filing of recovery
suits at centres other than the location of the unit, if necessary.
l We preserve the notices sent by post/courier services, etc. (and keep them unopened/
intact) when these are returned undelivered/unserved.
R. So that these envelopes can be produced as an evidence (of despatch of notices) in the
Court of law as the envelopes are branded with the postal date stamps.
RECALLED ASSETS:
l Interest is not applied on the accounts lying in Recalled Assets Account.
R. It will increase out tax liability (on artificially inflated profit). The full recovery of the principal
amount itself is doubtful in the case of any bad advances.
l Recalled Assets must be reviewed periodically.
R. With a view to ensuring the extent to which the outstanding in the R.A. account are fully
covered by the present realisable value of the securities. In the event of a shortfall, the
outstanding are required to be written off.
l Branches should arrange for immediate write-off of long outstanding bad debts.
R. With a view to minimising the loss to the Bank.
l In the plaints of suits, the amount of un-applied interest should be shown properly.
R. There is a concept in law which states that if the account does not reflect the interest due
up to the date of plaint, the Bank would lose the right to such accrued interest.
l The compromise proposals should be entertained on a selective basis.
R. With a view to reducing the non-performing assets thereby utilising the recycled funds for
productive purposes as per the national priorities/plans.
MISCELLANEOUS:
l 'P' Review Meetings are required to be held by the RMs (Regional Managers).
R. This serves as a vital source of information to the controlling authorities as to the reasons
for variances. These also enable them to suggest/initiate suitable corrective measures,
where necessary.
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l Balances of General Ledger as on each Friday are required to be monitored properly.
R. This enables the Bank to arrive at the correct figure of demand and time liabilities at the
apex level well in time . This helps the Bank in maintaining statutory reserves (CRR, SLR)
at the appropriate rates, thus, avoiding penal action by RBI (against the Bank).
l The time norms(TAT) should be adhered to as far as possible.
R. Non-adherence of time norms by the branches tantamount to deficiency in services under
the consumer protection act. The staff concerned may be held accountable for any losses
the Bank may suffer on account of claims made by the customers against the Bank regarding
non-adherence of time norms.
l Leave of any kind cannot be claimed by employees as a matter of right.
R. Indiscriminate and simultaneous availment of leave by employees at any office results in
problems regarding re-distribution of work. This leads to dislocation of smooth functioning
of the branch and customer services.
l No interest is charged on festival advances granted to members of the Bank's staff.
R. Conceptually, festival advance is treated not as a loan but as salary advance to employees
to meet expenditure connected with festivals.
l Visiting Faculty Scheme (V.F.S.) has been introduced by the Bank.
R. The existing institutional training capacity is inadequate to meet the training needs in full of
our vast number of employees. The visiting faculty scheme provides greater training
coverage besides providing in-branch training in the core areas of banking.
l The Bank is now paying a great deal of attention to marketing of its services/products
(aggressive marketing).
R. Due to great increase in competition from other banks and financial institutions, the
development of the capital market and the process of disintermediation, as also increasing
strain on profitability, the Bank can no longer rely on mere walk-in business.
***
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SITUATION ANALYSIS
Case Studies/Situational analysis: (Each question carries 10 marks)

1. Mr Gautam Ghosh who guaranteed a Term Loan of Rs 25 lacs to Mr Vivekananda
Bannerjee expired about 12 years back. His son Mr Shantanu Ghosh received a notice from the
Bank demanding repayment of a sum of Rs 45 lacs with interest. Upon making a visit to the
branch with a copy of the advocate's notice, Mr Ghosh is denied the information on the grounds
that the matter is sub-judice. He files an application with the Branch Manager of the Branch
under the Right to Information Act seeking the total details of the loan and an explanation as to
why he has been made a party for a loan not availed by him. Explain who are the persons who
will deal with the application and what are the details which would be furnished to the application.
ANS: In the present circumstances, the Branch Manager is the designated Central Assistant
Public Information Officer as per the provisions of the RTI Act. He is therefore bound to receive
the application of Mr Shantanu Ghosh and acknowledge the same. It is also his duty to accept
fees and forward the same to the Regional Manager of his Region who is the designated Public
Information Officer as per the provisions of the RTI Act within 5 days of receipt of the application
(Section-6(3) RTI Act). The Regional Manager in turn will have to furnish a reply to Mr Ghosh
within 30 days. The Regional Manager may also utilize the services of such other officer as
required to enable him to furnish his reply to the application within the allotted time frame of 30
days. All the details of the Original Loan and the reasons for including him as a debtor would be
furnished to him.
2. 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:
l 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.
l 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.
l 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.
l 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.
l The HNI customers would be provided with separate seating space and counter for
exclusivity and privacy of their transactions.
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03. 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:
l 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.
l 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.
l 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.
l I would arrange for a picnic / get together and invite the staff along with their family members.
Seeing the lady in the company of the family members would help my staff to realize her
identity and bring the correct perspective.
l I would also counsel the youngsters on dress and behavioral codes in as subtle a way
as possible.
l 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.
l Design a fortnightly review of working of the arrangement and seek staff suggestion for
improvement in the same.
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04. 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.
05. 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 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.
06. 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
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07. 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 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:
(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.
8. 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
==========================================================================
7000 7000
(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
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9. 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 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.
10. 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:
l Ascertain if the remittance was for the studies of his ward in Pilani
l 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.
l 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
l Try to cross sell products of SBI Life such as Super Suraksha, or Edushield (in case he is
interested in Student Loan), etc.
l Persuade him to take a credit card with an add-on card for his ward
l On the whole, project an image of a customer-friendly Bank, keen to serve its
customers better
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11. 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.
12. There is a fixed deposit of Rs.1 lac in the name of A & B payable to "Either or Survivor". How
will you deal?
a) When A has approached for payment of the TDR duly discharged by him only on due date.
b) When A has approached for premature payment of the TDR duly discharged by him only
stating that B expired and produced death certificate
c) When A has approached for premature payment of the TDR duly discharged by him only
and there is no mention of B
Ans.
1) Bank can pay the amount to A on due date and his discharge alone on the TDR is enough
and the signature of B need not be obtained as the mandate is E or S
2) If the operating instruction is 'Either or Survivor' and one of the depositors expires before
the maturity, no pre-payment of the term deposit may be allowed without the concurrence
of the legal heirs of the deceased joint holder. This, however, would not stand in the way of
making payment to the survivor on maturity. As such A will be advised to obtain the
concurrence of legal heirs of B for making premature payment.
3) The signatures of both the depositors have to be obtained, in case the deposit is to be
paid before maturity.
If mandate from all the depositors is obtained in the modified mandate form that at any
time before maturity etiher party can close/premature payment etc , at the time of opening of
term deposit account or thereafter the branch can pay the deposit to any one of them even
before maturity.(e circular no 735 /2011-12 dt.19.11.2011).
13. 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.
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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 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/-
14. 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.
15. 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?
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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) 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 appro-
priate follow up action. The branch manager and every staff members shall be vigilant without
allowing any slackness in our preparedness to meet any crisis.
16. 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 counter-
claim 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.
17. Your branch is located in a busy business locality. There are huge number of small & medium
traders and service providers in the area who generate sizeable cash business. As the custom-
ers have to keep minimum Rs.10000/- balance in the current account, these businessmen did
not open any accounts with us. Though some business people can afford to keep huge funds in
their accounts, they feel our remittance charges are heavy. Your Bank is under core banking.
These traders are doing remittance business with other banks, where the remittance charges
are less. As a Relationship Manager (ME) working at the branch what type of accounts do you
propose to open?
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Ans: In this case I will market for SME Sahaj Current Account for low value business people and
SME Power Gain and SME Power Pack for High Value Business Entrepreneurs. SME Sahaj is
a current account, meant for small entrepreneurs who cannot afford high balances in their current
accounts. It is almost a No-frill account for small entrepreneurs. Just with a minimum amount of
Rs.1,000/- they can open and operate the account. Every day they can remit a maximum of
Rs.10000/- in their accounts. But cash drawings are not permitted across the counter. Cheque
Books are issued.
SME Power Gain a current account scheme, available to the SME customers, who will
maintain a quarterly average balance of Rs.1,00,000/- in their accounts. We will offer concessional
rates for issue of drafts and for collection of cheques. They will be provided with Multi City Cheques.
We collect service charges, if the minimum balance requirement is not fulfilled. They can draw
cash upto Rs.40,000/ - per day through domestic ATM card.
SME Power Pack: It is also a current account similar to SME Power Gain, but the Minimum
Quarterly Average Balance to be maintained is Rs.5 lacs. The rates of concessions are higher
when compared to SME Power Gain. They can draw cash upto Rs.50,000/- per day through
International ATM-cum- Debit Card. Issue of MCCs is free.
18. 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 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.
19. Sukhram, a progressive farmer of your branch, having KCC limit of Rs. 1 lac with your
branch for the past 3 years, approaches you, for advice and help. He has 5 acres of perennially
irrigated land, and 5 acres of dry land in his name. He wants to provide drip irrigation for his dry
land at a cost of Rs.50,000/-. After drip irrigation is installed, he wants to raise lemon garden in
this land at a cost of Rs.2,50,000/- over a period of 5 years. As a milk route has been established
for his village, he wants to buy 10 milch animals, at a cost of Rs.2,50,000/- to start dairy activity.
Further he has to send Rs.1,00,000/- after 6 months to his son, who is studying final year of
engineering, at a distant place. The market value of the land he owns is Rs.10,00,000/-.
What type of loan scheme do you suggest to Shri Sukhram and why?
Ans: I suggest Kisan Gold Card to Sri Sukhram.
Single Term Loan Limit is sanctioned to the Customer for his various investment needs
excepting
"Tractor" for which he wants to spend in a limited period.
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The limit is sanctioned, based on the.5 times the annual farm income, or 50% of the value
of land mortgaged or Rs.10 lacs whichever is lower.
We have to ensure 10% margin on investment needs, and 30% on consumption needs.
In the normal cases, the repayment period is to a maximum period of 6 to 7 years. But in
deserving cases it can be extended upto 9 years.
In this case, we can sanction a maximum loan of Rs.5 lacs loan to the customer. The
customer can utilise Rs.70,000/- for remittance to his son. We also suggest him to stagger the
loan requirement for lemon garden for over 5 years so that the first year's requirement can be
covered under KGC.
Though single document is taken for entire limit, separate accounts will be opened
(maximum of 5 accounts) at different times, for meeting the customer's requirements. -In the
above case we can open 4 accounts for (1) Drip irrigation, (2) Lemon garden, (3) Dairy and for
(4) Education expenses.
The limit sanctioned, will have a validity of 1 year and within this period, the borrower can
utilise the limit, at different dates for different purposes.
The repayment will be fixed independently for each loan, coinciding with the cash flow of
the farmer either in monthly/quarterly/half-yearly / yearly installments, subject to a maximum repay-
ment period of 9 years.
20. 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.
21. 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
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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 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
22. The applicant of a demand draft was given a duplicate draft after completion of necessary
formalities. After 10 days of issue of the duplicate demand draft, the applicant calls on you and
asks for issue of a triplicate demand draft, giving the reason that he again lost the demand draft.
The amount of the draft was Rs.800/-. How will you proceed in the matter?
Ans. Before issuing a triplicate demand draft, the following precautions will be taken :
(i) Discreet enquiries will be made as to how the original as well as the duplicate draft was
lost, in order to ascertain precise reasons, (ii) The triplicate draft can now be issued without
obtaining Non-payment certificate from the drawee branch, provided there are no reasons to
doubt the bonafides of the applicant. (iii) An enquiry in CBS will reveal the status of the Draft and
it should be ensured that the draft has not been paid. (iv) Letter of indemnity will be obtained,
and, (v) Controlling authority will be advised about the transaction.
23. 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.
24. 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.
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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.
(3) The bank has a right of lien on the documents attached to the bills of exchange so
discounted.
25. 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.
26. 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.
27. 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. Thus, individual partners may be held liable for the
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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.
28. 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.
29. 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)
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.
30. 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?
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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.
31. 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:
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.
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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.
32. Mr. Rahul Sharma had purchased a draft for Rs35000/-. Now he has applied for issuing
a duplicate draft as the draft in case has reported lost-in-transit. Payee of the draft is not willing
to execute the letter of indemnity. Miss Surabhi, the newly posted Manager(Branch Operation)
did not receive the application from Mr Sharma. Mr Sharma approached you(The Branch
Manager). Please state how you will deal with such situation.
ANS: The application containing the request for issue of duplicate draft will be received
from Mr Sharma and he will be requested to wait before the formalities for issuance of duplicate
drafts as per extant systems and procedures are completed. You will call Miss Surabhi and
explain the procedures for issue of duplicate drafts which are as follows:
a) Status of the draft will be changed from 'issued' to 'lost' in CBS.
b) A duplicate draft can be issued either at the request of applicant or payee.
c) We have to apply due diligence (viz. A lost-in-transit certificate from the courier/postal
agency, a oral/written confirmation from the payee having not received the draft etc.) in
order to ensure that the draft is not available with the payee.
d) A duplicate draft can be issued after obtaining letter of indemnity from the purchaser/
applicant and surities(if necessary).
e) Production of sureties may not be insisted upon while obtaining indemnity for issuance of
a duplicate demand draft where the amount of draft is below Rs.1,00,000/- if the applicant
(purchaser) of a draft is considered good for the amount involved
and
the applicant / purchaser is maintaining satisfactory account complying KYC norms with
the issuing branch for a minimum period of six months as on the date of issue of the
original draft.
f) Where the applicant (purchaser) is not known to the Bank (not an account holder) or not
considered good for the amount, sureties may be obtained and reasons therefor recorded
on the request letter received from the applicant in this regard before entering in the 'Branch
Documents Register'.
g) The application, original draft application form and the letter of indemnity will be entered in
the Branch Documents Register and kept on Branch Record.
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 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)
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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 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
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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
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:
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.
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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.
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:
l 100 employees are of executive cadre drawing monthly salary of Rs.50000/- and above.
l 100 employees are of supervisory cadre drawing monthly salary of Rs.25000/- to Rs.35000/-
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l 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 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?
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.
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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 bring 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 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 errenous 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
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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 : 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.
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,
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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
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 Raj (37 years of age), is a good farmer Dompeta. He is a widower. Last year his wife
passed away. His family consists of his son(12 years) and mother(57years).
He had availed a power tiller loan from Dompeta Branch and repaid the loan in due time(the
last installment was paid on January 2015). He cultivates his own land of 3 acres besides 1
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acre as share cropper. Moreover he posseses four milch cows and a small poultry firm. From
the allied agricultural activities he earns Rs15000/- per month. His fiscal prudence is good and
he has saved a good amount (approximately 3 lakhs) in form of STDR with us and in form of
NSC in post office.
With the increasing firming activity he wants to upgrade from the power tiller to a tractor.
He has decided to purchase a tractor and trailer. His concern is interest rate and he wants to
avail a tractor loan with the minimum interest rate. He is in a hurry as the harvesting season is
on. The branch head of HDFC bank has visited him and said that a tractor loan will be sanctioned
to him within 2 days. You are the Branch Manager of Sompetta Branch. How you will help and
retain your customer as well as increase business.
Ans. : From the profile of the prospective borrower it appears that he can be financed a tractor
under Stree Shakti Tractor Loan scheme. The eligibility criteria of the SSTL is as follows.
a) The loan shall be sanctioned with women as co-borrowers.
b) Minimum agriculture land holding of 2 acres in the name of borrower(s).
c) Minimum net annual income of the borrower(s) is Rs.1.50 lacs from farm activity /custom
hiring / other sources.
d) Income of the co-borrower(s) may be reckoned for arriving at Net Annual Income.
e) EMI / NMI shall not exceed 60%.
In order to alleviate his concern for high interest rate he may be offered the SSTL with
collateral security. The interest rate for the loan is 1.50% above Base Rate p.a. i.e.10.80 at present.
The major benefits of the SSTL without collateral are - a) Minimum margin stipulated is
10%. b) Mortgage of immovable properties is not envisaged. c) Security of gold ornaments,
NSC, Time Deposits (advance value of gold ornaments, time deposits, NSC) to the extent of a
minimum 30% is obtained for loans sanctioned under 'SSTL with Collateral'. d) 48 EMIs for
repayment of the loan. e) Lower interest of 1.5% above Base Rate.
In this perspective the SSTL with Collateral will be offered to him in which his mother will
stand as co-borrower for the loan. As he possesses three acres of land in his own name he
satisfies the criteria of minimum land holding(i.e.2 acres) in the name of the borrower. There is
no need to mortgage the agricultural land and the loan will be sanctioned quickly (The TAT
stipulated is 3 days). His annual income from agricultural as well as other sources comes to
Rs1.80 lac which is more than the stipulated Rs1.50lac. He is having STDRs and NSCs worth
Rs3 lac which can be taken as collateral security.
52. 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):-
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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.
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 the
borrower 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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ESSAY ON GENERAL TOPICS
GO ORGANIC, GO GLOBAL
With consumers becoming increasingly concerned and `informed' about the quality of what
they consume, food safety is assuming a crucial role. Food safety, quality and hygiene standards
are becoming stricter by the day, especially in developed countries. Issues such as BSE (mad
cow disease) and Starlink (unauthorised use of genetically modified corn in human food), with
trans-border ramifications, have corroded consumer confidence in the claims of food companies
thus hastening the need to tighten food laws. Mycotoxin contamination, unacceptable levels of
pesticide residues and environment protection are problems producers and policy-makers are
struggling to cope with.
Recognising the need to protect user interest, and indeed advance consumer welfare
overall, the European Union, for instance, has announced much tougher measures including
criminal sanctions to strengthen safety controls to improve significantly the countries' ability to
manage the food and feed chain, and deliver ever safer food. Central to the theme of consumer
welfare is the sustainability of agriculture. Promising technologies that combine increased
production with improved environmental protection have emerged. These include no-till, or
conservation agriculture, and the lower-input approaches of integrated pest or nutrient
management and organic agriculture. In recent times, the movement for sustainable agriculture
has manifested itself in organic farming that aims at using chemical-free farm inputs to produce
crops that are both natural and healthy even while protecting the environment. Though yields are
10-30 percent lower than in conventional farming, organic agriculture can give excellent profits.
For, consumers in developed countries are willing to pay price premiums of 10-40 percent for
organic products and government subsidies are a further sweetener. Thus, not only is the area
under organic farming expanding rapidly, the market for such foods is booming - growing at 15-
30 per cent a year in many industrial countries - even as the potential demand far outstrips
supply, according to the Food and Agriculture Organisation.
India is ideally placed to produce and export organic foods. Indeed, organic farming is more
widely practised here than in the developed world, but more out of economic necessity (most
farmers simply cannot afford the so-called modern inputs) than as a life style. But India has not
promoted its crops as being grown more organically than elsewhere. Policy support is essential to
give a big push to organic cultivation especially of tropical products such as horticulture and plantation
crops. In most parts of the world, support to agriculture is increasingly shifting from production to
environmental and social goals a trend that is bound to favour organic agriculture.
Contract farming provides an ideal vehicle to promote organic agriculture. It is for corporate
to take advantage of the emerging business opportunities.
ESSAY ON BANKING RELATED TOPICS
Technology for better Customer Service
Technology is a process which minimizes human intervention for performing transactions.
In the changing scenario and due to advent of technological solutions user acceptance level
have gone up. In the Banking Sector with the introduction of computer technology the transaction
cost has been substantially reduced. The concept of Brick and Mortar banking has undergone
a sea change. Some of the new generation banks entered in the market with technology and
they were able to capture the sizable market share , could attract young/tech savvy customers
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particularly the mass affluents. Technology eases the transaction process and the customer can
transact from their place. So the shift of Conventional banking to convenience banking only due
to technology.
Some of the technology based and widely accepted product/processes are ATM, Internet
Banking,Mobile Banking,IMPS,Green Channel Counter,Cash Deposit Machines,POS-MAB etc.
The introduction of ATM its installation in every place has become impearative which provide
24*7*.365 round the clock rendering basic banking services. Now the services like transfer of
funds I.e Card to Card,Card to Account,Fixed Deposit, Cheque book indent and many more
basic requirements are being fulfilled. Further, through internet banking we can do almost a
branch work except cash transactions. There is no time constraints and no geographical barriers
it is a convenient banking thus enhances customer satisfaction and day by day new services
being added so as to meet the demand. The latest and widely accepted mode of delivery of
service is mobile banking. The recharge of mobile top-up, transfer of funds from account to
account,dealer to industry major,DTH recharge, M-commerce etc can be performed round the
clock. The RBI armed with Payment and Settlement of System Act,2007 is the regulator for
such activity. The National Payment Corporation of India(NPCI) has promoted a payment gateway
through IMPS(immediate Payment Services) by using MMID(mobile money Identifier) a seven
digit unique code required for transferring fund, it can be done through ATM, INB, MBS. In this
process the sender and the receiver get message regarding transfer of funds. Cash Deposit
Machines are being deployed in the strategic position and cash can be deposited by the customer
up to a certain limit. The latest being TAB banking which will bring revolution in the banking industry.
Further, data mining and analyzing the needs of the customer and developing tailor made product
and process for the customer will enhance the existing customer service. The usage of Technology
is a win win situation both for the banker as they relived of the transaction risk and convenience
banking for the customer.
CAUSES & REMEDIES OF BLACK MONEY:-
1) Black Marketing during the Second World War period:-
During the Second World War period many in the Indian industry found the situation ripe
for black marketing. Supplies of Industrial goods from the foreign countries were cut off. This
resulted in severe shortages in many vital lines. The inflationary finance led to price escalation.
Taxes were raised sharply on higher incomes and excess profits. In these circumstances many
businessmen indulged in black marketing. They evaded taxes. They earned huge profits in
respect of goods that were in short supply through black market.
2) Transactions in Urban Real Estate:
These have contributed very greatly to the growth of parallel economy. The seller is tempted
to evade capital gains tax and the wealth tax. The buyer benefits by evading wealth tax, stamp
duty for registration of the property.
3) High Tax Rates and Defective Tax Structure:-
The enforcement of tax laws are very weak due to widespread corruption in these departments.
The high rates of these taxes induce business men to avoid recording of these transactions.
4) Increase in Public Expenditure:-
Public Expenditure in such good causes as removal of poverty. Subsidization of the
supplies for needy has neither been efficiently administered nor properly targeted. The result
has been large leakages into the stream of unaccounted income.
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5) Donation to Political Parties:-
To get relation of various controls, and licences, business people contribute to the funds of
political parties from the black money to earn again black money. They seek the support of the
politicians in power not to bite but only to bark.
SUGGESTIONS:-
Following due considerations may result into eliminating black money in the country.
1) The penalty for unreported transactions. Which fall within the tax net, be made more severe.
2) The opportunities for corruption should be eliminated. This necessitates an overhaul of the
control/licensing/ permit system. Proper remuneration to administrative functionaries to
be paid.
3) These is a need for a radical change rather reversal of the attitude of the people. The need
is to educate the people and to change their very work ethos.
4) The structure of indirect taxes need to be rationalized so as to cover goods and services
which are escaping tax. The introduction of MODVAT that concentrates on the final
commodity is a very welcome step.
5) The tax net should be expanded to cover new tax payers.
6) Removal of controls, permits that are considered unnecessary.
7) Donations to political parties by companies should be banned.
Deregulation Of Savings Bank Rates: Looking Beyond
The fear that the deregulation of Savings Bank Rates would result in a rate war has been
belied. Only a few smaller sized private sector banks have revised their rate from the earlier
administered 4% to 5.5-6%.When the price is administratively mandated, it stifles competition.
The argument for administered SB rates was that deregulation of SB rates could increase the
cost of funds for the banking system. However an analysis of the relationship between cost of
funds and the type of deposits held by the banks shows that the cost of funds was influenced
equally by the extent of current accounts component in the CASA besides the extent of CASA in
total deposits. While with the exception of a few banks most of the banks had a good CASA
base, the current accounts to CASA ratio varied in a wide range. Despite the fact that the current
accounts do not earn any interest, new generation private sector and foreign banks were able to
attract huge current account deposits perhaps because of non-price factors in the form of quality
and diversity of products these banks provide to its customers. The freeing of Savings Bank
rates would result in further intensification of this competition. Such competition can become
more intensive with the entry of new private sector banks after the announcement of the new
banking licence guidelines. Therefore deregulation will allow more room for non-price competition
for improving the quality and diversification of customer service.
New Banking Licenses
The Reserve Bank of India (RBI) has recently published the final guidelines for new bank
licences. Among other things, the guidelines have allowed any entity-be it a private or government
owned-having its roots in any sector, including brokerages and realty, to apply for banking licence.
The RBI, however, said it will go by "fit and proper" criteria, which will include having a past
record of sound credentials, integrity and financial soundness with a successful track record of
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10 years, while giving licences. The new guidelines seek Rs.500 crores as minimum equity
capital to set up commercial banks and insisted on getting them listed within three years of
operation. It has laid down criteria with respect to promoter eligibility, corporate structure, foreign
shareholding, corporate governance, prudential and exposure norms. An important criterion for
evaluating applications will be the business plan that potential applicants submit for financial
inclusion. The RBI has ensured adherence to financial discipline by stipulating the promotion of
new banks by a non-operative financial holding company (NOHFC) in the form of Non-Banking
Financial Company (NBFC) which will be regulated by the RBI and would have to comply with
present prudential guidelines on standalone and consolidated basis. The banks would also
have to maintain a minimum capital adequacy ratio of 13 per cent.
Financial sector analysts have termed new banking guidelines as a balanced and pragmatic
approach as it allows a broader set of entities in the banking sector besides ensuring maximum
prudential norms to avoid any systemic risks.
Impact of Globalisation on Banking Sector in India
There are three distinct spells of development of Banking industry in post independent
India, the pre-nationalisation era from 1947 to 1969, the post-nationalisation cum preliberalisation
era from 1969 to 1991 and the neo-liberalisation era from 1991 onwards. The first phase was
mostly city-centric private Banking marked by frequent failures and liquidation of Banks and
consequent pauperisation of numerous poor and middle class depositors and loss of jobs for
the employees. The post-nationalisation era saw a sea change in the Banking scenario : financial
stability of Public Sector Banks controlling more than 84% of Banking business of the country,
PSBs commanding trust and confidence of the Banking-public, expansion of Branch net-work
of Banks -particularly in hitherto unbanked rural and semi-urban centres, opening up the banking
services accessible to the rural poor, expansion of credit to agriculture, small scale industries
and small entrepreneurs, artisans - even to the marginal farmers, small shop owners, vegetable
vendors etc. Such expansion of Branch network, coupled with such mass-banking, created
considerable job opportunities on the one hand, and, on the other, it helped a green revolution
on the agricultural sector, obviating dependence of import of food grains, as also a spurt in the
development of Small and Medium Scale Industries. It also rescued a vast section of the rural
poor from the exploitation by village-money-lenders. By tapping the hitherto untapped huge rural
savings, the PSBs could help the growth of large-scale and capital intensive industries too.
Even the most ardent critics of Public Sector too have had to recognise and appreciate the
laudable role of PSBs towards development of economic self reliance. During this post
nationalization era, Regional Rural Banks were established in 1975 onwards under the auspices
of PSBs to cater to the credit needs of rural-India. Till 1990, priority sector lending constituted
over 70% of the advance portfolio of RRBs giving further fillip to the rural economy. During the
last four decades of their productive existence, the PSBs have taken up the services of
employees and the liability of depositors of a number of Private Banks going on liquidation due
to mismanagement by and the greed of their private owners. With the onset of World Bank-IMF
dictated reforms, euphemistically called liberalisation, successive Governments at the centre
have consistently been trying to undo all the good work of the PSBs as also to dismantle and
privatise the PSBs altogether. The Government of India appointed Narashimham Committee to
suggest the modus operandi for reforms of the Banking Sector. The said Committee suggesting
downsizing of PSBs through closure of Branches, merger of PSBs, reduction of priority sector
lending from the then prevailing 40% to 10% of total advance portfolio, to reduce the supervisory
and regulatory control of Reserve Bank of India , to top it all, dilution of Government Holding in
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PSBs through suitable amendment of relevant legislations. Thereafter, a number of committees,
such as Narashimham Committee - II, Khan Committee, Verma Committee, S.C.Gupta
Committee, Raghuram Rajan Committee, have been appointed to assess the progress in
implementation of the Recommendations of the "Narashimham Committee - I" as also to suggest
measures for carrying forward the reforms of the Banking Sector further as per dictates of the
World Bank-IMF.
Impact of E-Banking on Traditional Banking Services
Internet banking is changing the banking industry, having the major effects on banking
relationships. Banking is now no longer confined to the branches were one has to approach the
branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In
true Internet banking, any inquiry or transaction is processed online without any reference to the
branch at any time. Providing Internet banking is increasingly becoming a "need to have" than a
"nice to have" service. The net banking, thus, now is more of a norm rather than an exception in
many developed countries due to the fact that it is the cheapest way of providing banking services.
E-banking transactions are much cheaper than branch or even phone transactions. Instead,
they will be adaptable and responsive. E-banking gives consumers much more choice.
Consumers will be less inclined to remain loyal. Portal providers are likely to attract the most
significant share of banking profits. The products will be provided by monolines, experts in their
field. Traditional banks may simply be left with payment and settlement business even this could
be cast into doubt. Traditional banks will find it difficult to evolve. Not only will they be unable to
make acquisitions for cash as opposed to being able to offer shares, they will be unable to
obtain additional capital from the stock market. This is in contrast to the situation for Internet
firms for whom it seems relatively easy to attract investment. E-banking is just banking offered
via a new delivery channel. It simply gives consumers another service. Customers want full service
banking via a number of delivery channels. The future is therefore "Martini Banking" (any time,
any place, anywhere, anyhow).Traditional banks are starting to fight back. The start-up costs of
an e-bank are high. Establishing a trusted brand is very costly as it requires significant advertising
expenditure in addition to the purchase of expensive technology. E-banks have already found
that retail banking only becomes profitable once a large critical mass is achieved. Consequently
many e-banks are limiting themselves to providing a tailored service to the better off. E-Banking
transaction needs some interface to communicate with banking customer. The electronic devices
which perform interact with customers and communicate with other banking system is called
electronic banking delivery channels.
E-banking is a borderless entity permitting anytime, anywhere and anyhow banking. This
facilitates us with all the functions and many advantages as compared to traditional banking
services. During this step of the process, controls that could mitigate or eliminate the identified
risks, as appropriate to the organization's operations, are provided. The goal of the recommended
controls is to reduce the level of risk to the IT system and its data to an acceptable level.
Points of Sale (POS) Terminals:
To use smart cards /debit cards / credit cards for the purpose of an item or for payment of
a service at a merchant's store, the card has to be swiped in a terminal (known as Point of Sale
or POS terminal) kept at the merchant's store. As soon as the card is put on the terminal, the
details of the card are transmitted through dial-up or leased lines to a host computer. On
verification of the genuineness of the card, the transaction is authorized and concluded. It is thus
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a means to 'check out' whether the cardholder is authorized to make a transaction using the
card. POS terminal is a relatively new concepts.
A Point of Sale (POS) terminal is an integrated PC-based device, with a monitor (CRT),
POS keyboard, POS printer, Customer Display, Magnetic Swipe Reader and an electronic
cash drawer all rolled into one. More generally, the POS terminal refers to the hardware and
software used for checkouts.
Bank is the acquirer of the terminal and the merchants are required to hold an account
(merchant account) with the acquirer bank. The acquirer bank levies each transaction with a charge,
as 1% of the transaction value. This amount is payable by the merchant. Most merchants do not
mind absorbing this cost, because such facilities expand their sales. Some merchants, however,
pass on the cost to the customer. This business is known as merchant acquisition business.
Credit Card / Debit Card:
The Credit Card holder is empowered to spend wherever and whenever he wants with his
Credit Card within the limits fixed by his bank. Credit Card is a post paid card. Debit Card, on
the other hand, is a prepaid card with some stored value. Every time a person uses this card,
the concerned Banking house gets money transferred to its account from the bank of the buyer.
The buyers account is debited with the exact amount of purchases. An individual has to open an
account with the issuing bank which gives debit card with a Personal Identification Number
(PIN). When he makes a purchase, he enter his PIN on shops PIN pad. When the card is slurped
through the electronic terminal, it dials the acquiring bank system - either Master Card or VISA
that validates the PIN and finds out from the issuing bank whether to accept or decline the
transactions. The customer can never overspend because the system rejects any transaction
which exceeds the balance in his account. The bank never faces a default because the amount
spend is debited immediately from the customer's account.
Smart Card
Banks are adding chips to their current magnetic stripe cards in order to enhance security
and offer new services, that are called Smart Cards. Smart Cards allow thousands of times of
information storable on magnetic stripe cards. In addition, these cards are highly secure, more
reliable and perform multiple functions. They hold a large amount of personal information ranging
from medical and health history to personal banking and personal preferences.
Nationalised Banks:
At the times of independence, there were 645 banks with 4800 branches in India. The
government of India nationalized fourteen major banks on July,19,1969 which had deposits of
more than Rs.50 Crore. These Banks are Punjab National Bank, Central Bank, United
Commercial Bank, Bank of India, Bank of Baroda, Allahabad Bank, Union Bank, Canara Bank,
Dena Bank, Indian Overseas Bank, United Bank of India, Bank of Maharashtra, Syndicate Bank
and Indian Bank. On April,15,1980, six more banks were nationalized. Each of these had deposits
of more than Rs.200 Crores. These banks are Andhra Bank, Punjab & Sindh Bank, New Bank
of India, Vijaya Bank, Corporation Bank and Oriental Bank of Commerce. Rs.87 Crores were
paid as compensation to the shareholders of 14 banks. Major share of ownership of State Bank
of India and its 7 subsidiaries lies with the government. These are deemed as Public Sector
Banks. In India, 92 per cent share in total deposits and credit, is of nationalized and public
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sector banks. After nationalization, government has acquired full ownership over these banks.
Employees of these banks will continue to function as before but will henceforth be treated as
government employees. These banks will now be controlled and managed by the government.
On account of the merger of New Bank of India with PNB in 1993, the number of nationalized
banks has been reduced to 19 now.
Objectives of Nationalisation:
Following are the principle objectives of nationalization.
l To Raise Public Confidence in Banking System.
l Nationalisation also sought to mobilize savings from the rural and urban areas in terms of
bank deposits.
l Expansion of banking facilities in rural and sub-urban areas was yet another important
aim of nationalization of banks.
l Nationalisation also sought to decentralize economic power. Nationalisation is a sure step
to break the monopoly control of big industrialists upon the banking system.
l Nationalisation seeks to reduce regional inequalities and help the poor.
l Nationalisation of banks aimed at giving more credit to the priority sectors, like agriculture,
small industries and traders.
l Another objective of nationalization was to ensure enough development funds for the
planned growth of the country.
Financial Inclusion in India:
The Reserve Bank of India has set up a commission (Khan Commission) in 2004 to look
into financial inclusion and the recommendations of the commission were incorporated into the
mid- term review of the policy (2005-06) In the report RBI exhorted the banks with a view of
achieving greater financial inclusion in order to make available a basic "no-frills" banking account.
In India, Financial Inclusion first featured in 2005, when it was introduced, that, too, from a pilot
project in UT of Puducherry, by K. C. Chakraborthy, the Chairman of Indian Bank. Mangalam
Village became the first village in India where all households were provided banking facilities. In
addition to this KYC (Know Your Customer) norms were relaxed for people intending to open
accounts with annual deposits of less than Rs.50000. General Credit Cards (GCC) were issued
to the poor and the disadvantaged with a view to help them access easy credit. In January 2006,
the Reserve Bank permitted Commercial Banks to make use of the services of Non-Governmental
Organizations (NGOs/SHGs), microfinance institutions and other civil society organizations as
intermediaries for providing financial and banking services. These intermediaries could be
used as Business Facilitators (BF) or Business Correspondents (BC) by Commercial Banks.
The bank asked the Commercial Banks in different regions to start a 100% financial inclusion
campaign on a pilot basis. As a result of the campaign states or UTs like Puducherry, Himachal
Pradesh and Kerala have announced 100% financial inclusion in all their districts. Reserve
Bank of India's vision for 2020 to open nearly 600 million new customers' accounts and service
them through a variety of channels by leveraging on IT. However, illiteracy and the low income
savings and lack of bank branches in rural areas continue to be a road block to financial inclusion
in many states. There is inadequate legal and financial structure. India, being a mostly agrarian
economy, hardly has schemes which lend for agriculture. Along with micro finance we need to
focus on micro insurance too.
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Objectives of Financial Inclusion:
The key objectives of financial inclusion are as follows:
l Access at a reasonable cost of all households and enterprises to the range of financial
services for which they are "bankable," including savings, short and long-term credit, leasing
and factoring, mortgages, insurance, pensions, payments, local money transfers and
international remittances.
l Sound institutions, guided by appropriate internal management systems, industry
performance standards and performance monitoring by the market, as well as by sound
prudential regulation wherever required.
l Financial and institutional sustainability as a means of providing access to financial services
over time.
l Multiple providers of financial services, wherever feasible, so as to bring cost-effective
and wide variety of alternatives to customers (which could include any number of
combinations of sound private, non-profit and public providers).
Financial excluded sections largely comprise of the following activities;
l Marginal farmers, Landless labourers, Oral leases
l Self employed and unorganized sector enterprises.
l Urban slum dwellers
l Migrants
l Ethnic minorities and socially excluded groups.
l Senior citizens.
l Women
l The North-East, Eastern and Central regions contain most of the financially excluded
population.
Self Help Groups (SHGs):
In recent years, Self Help Groups (SHGs) have emerged as a major strategy for the
promotion of informal credit to the rural poor. In 1992, RBI/NABARD have launched a "Pilot
Project" and issued necessary guidelines to the banking system for lending to the SHGs. After
careful thought and study, both the RBI and NABARD, assisting the SHGs became 'normal
lending programme' under priority sector and service area approach in 1996.
Meaning: A Self Help Group is a voluntary association of the poor people (specially women)
who belong to the same socio-economic background. The SHG promotes small savings among
its members, which are then kept with a bank. This common fund is then given a name. Such
SHGs have been formed generally around specific issues confronting the poor or specific
production activities and often they have mobilized savings among their members and used
such resources to meet the emergent credit needs of the members of the groups.
Objectives:
The objectives of forming SHG are as follow;
l To build mutual trust and confidence between the bankers and the rural poor people.
l To encourage banking activities, both on the thrift as well as credit sides, in a segment of
the population that the formal institutions usually find difficult to cover.
251
l To meet the needs of the poor by combining the flexibility, sensitivity and responsiveness
of the informal credit system with the strength of technical and administrative capabilities
and financial resources of the formal credit institutions.
Basel Committee:
For international banks, prudential norms were prescribed by the Bank of International
Settlements popularly known as BIS. The BIS appointed a Basel Committee on Banking
Supervision in 1988. Basel committee appointed by BIS formulated rules and regulation for
effective supervision of the Central Banks. For this it, also prescribed international norms to be
followed by the Central Banks. This committee prescribed Capital Adequacy Norms in order to
protect the interests of the customers.
Basel Accords (Basel I, II and III):
Basel Accord is a set of agreements set by the Basel Committee on Bank Supervision
(BCBS) which provides recommendations on banking regulations in regards to capital risk,
market risk and operational risk. The purpose of the accords is to ensure that financial institutions
have enough capital on account to meet obligations and absorb unexpected losses. The Basel
Accords refer to the banking supervision Accords (recommendations on banking laws and
regulations)- Basel I and Basel II issued and Basel III under development - by the Basel Committee
on Banking Supervision (BCBS). They are called the Basel Accords as the BCBS maintains it
secretariat at the Bank of International Settlements in Basel, Switzerland and the committee
normally meets there.
Base lI :- The first Basel Accord, known as Basel I, was issued in 1988ss that focused on the
capital adequacy of financial institutions. The capital adequacy risk, (the risk that a financial institution
will be hurt by an unexpected loss), categorizes the assets of financial institution into five risk categories
(0%, 10%, 20%, 50%, 100%). Banks that operate internationally are required to have a risk weight
or 8% or less.
Basel II:- Basel II is the second of the Basel Accords, which are recommendations on
banking laws and regulations issued by the Basel Committee on Banking Supervision. The
purpose of Basel II, which was initially published in June 2004, is to create an international
standard that banking regulators can use when creating regulations about how much capital
banks need to put aside to guard against the types of financial and operational risks banks
face. The second Basel Accord, known as Basel II, is to be fully implemented by 2015. It focuses
on three main areas, including minimum capital requirements, supervisory review and market
discipline which are known as the three pillars. The focus of this accord is to strengthen
international banking requirements as well as to supervise and enforce these requirements.
BASEL III : Basel III is a set of standards and practices created to ensure that international
banks maintain adequate capital to sustain themselves during periods of economic strain. The
Basel Committee on Banking Supervision published the first version of Basel III in 2009, giving
banks approximately three years to satisfy all requirements. As per Basel III banks will have to
hold core capital of at least 7 % of risk weighted assets by 2018. Largely in response to the
credit crisis, banks are required to maintain proper leverage ratios and meet certain capital
requirements. One of the key elements of Basel III is the stricter definition of capital. Another key
feature is the capital conservation buffer which aims to ensure that banks maintain a cushion of
capital that can be used to absorb losses during periods of financial and economic stress. Then
252
there is countercyclical buffer with the objective to increase capital requirements in good times
and reduce the same in good times. A new Liquidity Coverage Ratio (LCR) and Net Stable
Funding Ratio (NFSR) are to be introduced in 2015 and 2018 respectively. Basel III also includes
a leverage ratio to serve as safety net to falling asset value. Minimum Common Equity and Tier
I Capital requirements have also been made more stringent. Indian banks will require at least
Rs.5 trillion as additional capital to meet the global banking norms. Of the Rs.5 trillion, equity
capital will be Rs.1.75 trillion and Rs.3.25 trillion will have to come as non-equity portion. The
government which owns 70% of the banking system, alone will have to pump in Rs.900 billion
equity to retain its shareholding in the public sector banks at the current level to meet the norms.
This actually augurs well for the Indian banking sector.RBI has extended the date of implementation
of Basel III to April 1, 2013. The move will provide additional time to some banks that need to
enhance their capital base in line with the new norms for strengthening the resilience of the global
banking system.
Role and Functions of NABARD:
NABARD has to perform a numerous functions that are as follows;
l NABARD is an apex institution accredited with all matters concerning policy, planning and
operations in the field of credit for agriculture and other economic activities in rural areas.
l It is an apex refinancing agency for the institutions providing investment and production
credit for promoting the various developmental activities in rural areas.
l It takes measures towards institution building for improving absorptive capacity of the
credit delivery system, including monitoring, formulation of rehabilitation schemes,
restructuring of credit institutions, training of personnel, etc.
l It coordinates the rural financing activities of all the institutions engaged in developmental
work at the field level and maintain liaison with Government of India, State Governments,
Reserve Bank of India and other national level institutions concerned with policy formulation.
l It prepares, on annual basis, rural credit plans for all districts in the country, these plans
form the base for annual credit plans of all rural financial institutions.
l It undertakes monitoring and evaluation of projects refinanced by it.
l It promotes research in the field of rural banking, agriculture and rural development.
l Banking Codes and Standards Board of India(BCSBI):
BCSBI has been set up as an independent and autonomous body by the joint efforts of
RBI and the banks. It is meant to act as a watchdog to monitor and to ensure that the banking
practices adopted by the member banks are adhered to while delivering the services as promised
to the customers. The code is voluntary and sets minimum standards of banking and sets
minimum standards of banking practices. It is supposed to not only provide protection to the
individual customer but also generate awareness in the common man about his rights as
consumer of banking services. The body looks at deficiencies in the procedural aspects /
observance of rules and suggests modifications as necessary. If necessary, after a study of
common complaints, systematic changes in the working of banks are suggested. Banks have
voluntarily signed the code of commitments to customers with BCSBI benchmarking the quality
of service delivery and timelines.
253
Role of Banking Ombudsman:
RBI started the banking ombudsman scheme in 1995 with a view to providing a system of
quick redressal of customer grievances against banks. The ombudsman receives complaints
concerning a wide range of issues relating to deficiencies in banking services. It has been
modified over the years, to give wide scope and coverage to even tackle grievances concerning
internet banking and harassment by recovery agents.
Banking ombudsman takes up individual complaints for settlement, with powers to impose
penalties on banks, in the event of banks found to be deficient in their services.
As is common in India it is seen that only a small percentage of aggrieved customers
approach the ombudsman with their grievances.
The majority tends to remain and suffer; either due to ignorance or fear.
This approach is defective as major drawbacks therefore, remain uncorrected. To improve
the position and bring about corrections wherever necessary yet another autonomous banking
institution Banking Codes and Standards Board of India BCSBI) has been established to propose
systemic changes in the working of banks.
Benefits of Core Banking Solutions:
l The single biggest contributor in making technology carry forward the banking service is
the Core Banking Solutions or CBS.
l CBS refers to software applications for recording transactions, storing customer information,
calculating interest and completing the process of passing entries in a single data base.
l It enables accessing of complete customer account details centrally.
l This way, it makes it possible for the customer to reach the bank through whichever channel
he prefers, be it internet, mobile banking, phone banking, ATM etc.
l This technology solution is the basis of spreading anytime, anywhere banking through
adopting any module of banking.
l Banking has therefore become 24x7 from any place of choice of the customer.
l This paradigm shift in banking has revolutionized the speed, efficiency and reach of the delivery
systems.
Accounting, processing and management information systems which were trouble spots
earlier have witnessed dramatic improvements, enabling banks to calculate.
(i) interest on daily basis in savings accounts,
(ii) sanction retail loans quickly and most of all
(iii) finalize annual accounts in the shortest possible time.
It is imperative that technology be made intrinsic part of banking for better customer service
and enhances satisfaction.
This understanding has invariably made banks introduce banking products and services,
which cater to a range of customer demands and expectations.
New Products and Services:
The focus was naturally on products and delivery systems to make banking more customer
friendly. With these issues as thrust areas technology was adopted to expedite cheque clearances
254
and funds transfer through use of Electronic funds transfer (EFT) and Electronic Clearing Services
(ECS). These were aids to lessen time in remitting money and ease the system of routine utility
payments for customers of services and facilitate collection of bulk payments by service providers
/ lenders. The funds transfer process was taken to the next level through NEFT or national
Electronic Funds Transfer RTGS or Real Time Gross Settlement. NEFT and RTGS are nationwide
transfer of funds from one bank to another on the same day. The payments and settlement
systems are being continuously upgraded with faster mechanisms. The clearing house operations
have got further boost with CTS or Cheque Truncation Services which enable electronic image
of the cheques to be sent instead of the physical cheque. This facility which has been successfully
implemented in Delhi is to be extended to other centres in phases to reduce heavy workload
and chances of fraud. The intention is to have paperless banking in due course.
Nomination Facility
Depositors are provided with the facility of nomination while opening bank accounts. They
should exercise this option for better customer service and for protection of their interest when a
situation of settlement of account arises.
Settlement of claims in deceased accounts was proving to be a major cause of customer
grievance and thus through an amendment in the Banking Regulation Act, 1949 this facility has
been made available.
Nomination facility is not applicable in deposit accounts of partnership, limited company,
clubs, societies, trusts etc.
The depositor may nominate a person to whom the bank may make the payment of the
balance in the deposit account in the event of his death.
The nomination confers the right upon the nominee to receive the amount in the account of
the deceased from the bank.
Base Rate
With an objective of making pricing of lending products more transparent RBI has decided
to replace the existing BPLR(Bench Mark Prime Lending Rate) w.e.f April,1,2010,on the basis
of the recommendation of the working Group constituted by it headed by Deepak Mohanty .
Base Rate will be the minimum rate for all commercial loans. All categories of Loans would
henceforth be priced with reference to the Base Rate except DIR Scheme which will continue to
be fixed without reference to the Base Rate. No Banks will be permitted unlike BPLR to resort
lending at below Base Rate. Each Bank will be free to decide their own Base Rate determining
it on the Basis of
(i) cost of deposits
(ii) adjustment of negative carry on SLR & CRR
(iii) unallocated overhead cost for Banks
(iv) Profit margin.
The Base Rate system would be applicable for all new loans and for those Come up for
renewal. However, any existing borrower if desires to switch over to the new system before
expiry of existing contracts -the new/revised rate structure should be mutually agreed upon.
255
Banks are required to exihibit the informations on their Base Rate at all branches as well
as on their websites. Changes are also to be quickly conveyed to the public from time to time
through appropriate channels. Banks are also to ensure that interest rates charged to customers
under above Arrangements are non-discriminatory in nature.
GREEN BANKING
l Green / Ethical Banking implies socially and environmentally conscious banking.
l It includes: ethical investment, socially responsible investment, corporate social
responsibility.
l Green Banks have the potential to create environmentally and socially conscious business
practices.
l They can introduce pricing differentials for units that are following environmentally sustainable
business practices and charge more for units that aren't doing so.
l Banks have been surprisingly slow to examine the environmental performance of their clients.
l They must consider performing a triple bottom line analysis (an analysis that takes into
account environmental, social, and financial performance) of their borrower customers.
Green Banking is when a normal bank takes into consideration all the social and
environmental factors while carrying on its basic operation of lending and raising deposits. A
Green / ethical bank, is also known as a social, alternative, civic, or sustainable bank. The
potential for banks to create environmentally and socially conscious business practices
Numerous green/ethical banks (as well as some conventional banks) create initiatives
that allow the banker to contribute to organizations that have positive societal/environmental
impacts either in the local community or in developing countries.
Green/Ethical banks excel in community involvement, as do other financial institutions.
community involvement is not limited to ethical banks as conventional banks also partake in
such actions. Environment is a key focus amongst green/ethical banks (in this field specially
called sustainability or green banks) as well as amongst many conventional banks that wish to
appear more ethically oriented or that see switching to more environmental friendly practices to
be to their advantage.
Conventional banks deal with mostly internal ethics, green/ethical banks add to internal
concerns by applying external ethics.
WHITE LABEL ATMS
RBI has reviewed the extant policy on ATMs and decided to permit non banks to set up,
own and operate ATMs which will be in the nature of White Label ATMs (WLAs).Cash
Management of WLAs shall be entrusted to the sponsor bank, who may have necessary
arrangements in this regard with other banks for servicing cash requirements at various places
where the ATMs are located.Non-bank entities proposing to set up WLAs have to make an
application to RBI for seeking authorization under the Payment and Settlement Systems Act
2007. Such entities should have a minimum net worth of Rs. 100 crore at the time of making the
application and on a continuing basis after issue of the requisite authorization.
***
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Vikas 2016

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Vikas 2016

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(For internal circulation only)

STATE BANK LEARNING CENTRE

Naresh Chandra Kanungo, Asst. General Manager (Training). 9437562026

1. On recommendations of Committee and through passing of an Act in

ANSWERS TO ORGANISATIONAL STRUCTURE

1. (a) 2. (b) 3. (b) 4. (b) 5. (a)

6. (d) 7. (d) 8. (a) 9. (a) 10. (a)

1. Who can't avail Sabbatical Leave ?

a) Rs. 3 lacs b) Rs. 2 lacs c) Rs. 4 lacs d) Rs. 5 lacs

1. The Loan Policy is an embodiment of the Bank's approach to

1 A 21 D 41 C 61 D 81 A 101 B 121 D 141 C 161 D

2 D 22 A 42 C 62 D 82 B 102 C 122 D 142 C 162 D

3 C 23 A 43 A 63 C 83 A 103 B 123 B 143 B 163 A

4 D 24 A 44 A 64 A 84 A 104 B 124 B 144 A 164 B

5 B 25 D 45 A 65 C 85 C 105 C 125 A 145 A 165 A

6 A 26 D 46 A 66 C 86 C 106 B 126 B 146 D 166 A

7 C 27 A 47 C 67 D 87 B 107 A 127 A 147 A 167 D

8 C 28 D 48 B 68 C 88 B 108 A 128 B 148 C 168 B

9 C 29 A 49 C 69 C 89 D 109 B 129 C 149 B 169 B

10 D 30 B 50 A 70 C 90 B 110 C 130 D 150 C 170 C

11 B 31 A 51 B 71 B 91 C 111 C 131 C 151 A 171 C

12 C 32 D 52 B 72 D 92 A 112 C 132 B 152 D

13 A 33 C 53 A 73 C 93 D 113 A 133 D 153 C

14 D 34 D 54 D 74 D 94 B 114 A 134 C 154 A

15 B 35 B 55 C 75 C 95 C 115 B 135 D 155 A

16 C 36 B 56 B 76 D 96 D 116 A 136 B 156 B

17 C 37 C 57 C 77 B 97 C 117 A 137 C 157 C

18 D 38 C 58 C 78 C 98 D 118 C 138 A 158 D

19 C 39 D 59 B 79 D 99 B 119 C 139 D 159 C

20 C 40 D 60 D 80 C 100 B 120 A 140 B 160 B

1. Payment in due course is defined under .

a) GM of the Network b) CGM

a) Indian Post Office Act, 1898. b) ESMA 1991

KEYS TO LEGAL ASPECTS OF BANKING

1. KYC, AML & CFT guidelines are issued under act.

ANSWERS TO KYC & AML

1) Maximum permissible loan amount in SBI Yuva Home Loan is .

1 D 21 A 41 C 61 C 81 C 101 B 121 B 141 C

201 B 202 B 203 D 204 D 205 C 206 C 207 D 208 D

2. ATM Switch Centre ASC

ANSWER TO CURENT AFFAIRS

1. State Bank Buddy, the mobile wallet has been launched.

Case Studies/Situational analysis: (Each question carries 10 marks)

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