Multiple Choice Questions - 2016 Promotion

Question Bank on Credit Management & Risk Policy for the year 2016 – 17
MULTIPLE
1. Under overall Credit risk management framework, the bank has put in place the following
structure which includes:
a. IRMD CHOICE
PROMOTION
b. RMC
c. CARD
d. All of above
QUESTIONS
2. HOCAC Level – II is headed by which of the following official:
a. FGM
b. Senior most GM
FOR
2016
c. Senior most ED
d. CMD
PROMOTION
3. Approval for which of the following approach of Credit Risk Management has been given by
the RBI to our Bank
a. Standardized TEST
b. Foundation Internal Rating based
c. Advance Internal Rating based
d. Basic indicator
2016
4. Claims on Central/ State Government and the accounts guaranteed by the Central
Government is assigned __ risk weight
a. 0%
b. 10%
MIND
c. 20% INTELLECT SANSKAR DESTINY
d. 30%
U
5. Claims on
Central/ State
Government
and the
accounts
guaranteed by
KNOWLEDGE the State

Government is
assigned __
risk weight
IS a. 0%
b. 10%
c. 20% TRAINING CENTRE
ZONAL
POWER
d.36-TEG
30% BAHADUR ROAD
DEHRADUN (UK)
Email – ztcddn@pnb.co.in
Tel – 0135-2670946
0135-2678007
TABLE OF CONTENTS
SL. CONTENTS PAGE NO.

No.
1 CREDIT RISK POLICY - QUESTIONS 3
2 CREDIT RISK POLICY - ANSWERS 35
3 RETAIL LENDING - QUESTIONS 36
4 RETAIL LENDING - ANSWERS 51
5 RETAIL DEPOSIT - QUESTIONS 52
6 RETAIL DEPOSIT - ANSWERS 67
7 MSME - QUESTIONS 68
8 MSME - ANSWERS 84
9 GENERAL BANKING - QUESTIONS 85
10 GENERAL BANKING - ANSWERS 100
11 PRIORITY SECTOR - QUESTIONS 101
12 PRIORITY SECTOR - ANSWERS 113
13 BANKING REGULATION - QUESTIONS 114
14 BANKING REGULATION - ANSWERS 124
15 FOREIGN EXCHANGE - QUESTIONS 125
16 FOREIGN EXCHANGE - ANSWERS 136
ZTC Dehradun Page 2

Question Bank on Credit Management & Risk Policy for the year 2016 – 17
1. Under overall Credit risk management framework, the bank has put in place the following
structure which includes:
a. IRMD
b. RMC
c. CARD
d. All of above
2. HOCAC Level – II is headed by which of the following official:
a. FGM
b. Senior most GM
c. Senior most ED
d. CMD
3. Approval for which of the following approach of Credit Risk Management has been given by
the RBI to our Bank
a. Standardized
b. Foundation Internal Rating based
c. Advance Internal Rating based
d. Basic indicator
4. Claims on Central/ State Government and the accounts guaranteed by the Central
a. 0%
b. 10%
c. 20%
d. 30%
5. Claims on Central/ State Government and the accounts guaranteed by the State
a. 0%
b. 10%
c. 20%
d. 30%
6. Claims on the accounts guaranteed by RBI/DICGC/CGTMSE/CRGFTLIH is assigned __ risk

weight
a. 0%
b. 10%
c. 20%
d. 30%
7. Claims on the accounts guaranteed by ECGC is assigned __ risk weight

a. 0%
b. 10%
c. 20%
ZTC Dehradun Page 3

d. 30%
8. Claims on the scheduled banks having CRAR of 9% is assigned __ risk weight
a. 10%
b. 20%
c. 30%
d. 40%
9. Claims on the other banks having CRAR of 9% is assigned __ risk weight

a. 20%
b. 30%
c. 50%
d. 100%
10. Claims on the banks having CRAR of less than 9% is assigned __ risk weight
a. Upto 125% depending upon CRAR
b. Upto 425% depending upon CRAR
c. Upto 625% depending upon CRAR
d. Upto 825% depending upon CRAR
11. Claims on corporate having long term external rating of less than or equal to BB is assigned
__ risk weight
a. 30%
b. 50%
c. 100%
d. 150%
12. Claims on corporate having long term external rating equal to BBB is assigned __ risk
weight
a. 30%
b. 50%
c. 100%
d. 150%
13. 20% risk weight is assigned to corporate having long term external rating of
a. AAA
b. AA
c. A
d. BBB
14. 30% risk weight is assigned to corporate having ____ long term rating of ____
a. external, AA
b. internal, AA
c. external, AAA
d. internal, AAA
15. All unrated standard restructured / rescheduled accounts should be assigned risk weight of
___ until satisfactory performance under the revised payment schedule has been established
for ____ year when the first payment of interest/principal falls due under the revised schedule.
a. 100%, 1
b. 125%, 1
c. 100%, 2
d. 125%, 2
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16. Claims secured by commercial real estate- Residential House will be assigned __ risk
weight
a. 50%
b. 75%
c. 100%
d. 150%
17. A housing loan to an individual with an outstanding of 65 lacs and LTV of 80% will be
assigned a risk weight of
a. 50%
b. 75%
c. 100%
d. 125%
a. 50%
b. 75%
c. 100%
d. 125%
a. 50%
b. 75%
c. 100%
d. 125%
20. Claims secured by Commercial Real Estate – Residential Housing (CRE-RH) will be
assigned __ risk weight
a. 50%
b. 75%
c. 100%
d. 150%
21. Claims secured by venture capital fund will be assigned __ risk weight
a. 50%
b. 75%
c. 100%
d. 150%
22. Outstanding in credit card receivable will be assigned __ risk weight

a. 50%
b. 75%
c. 100%
d. 125%
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23. Although CGTMSE coverage for collateral free loan is upto 100 lakhs, Loan under MSME
scheme above 10 lakh to 50 lakh where ever collateral security is available is to be permitted
for sanction by
a. Incumbent Incharge
b. COCAC
c. FGMCAC
d. None of the above
24. Claims on Bank‟s own staff covered by superannuation and/or mortgage of house will be
assigned __ risk weight
a. 20%
b. 50%
c. 75%
d. 100%
25. Claims on Bank‟s own staff not covered by superannuation and/or mortgage of house &
other loans & advances to Bank‟s own Staff, will be assigned __ risk weight
a. 20%
b. 50%
c. As per regulatory Retail
d. 100%
26. The unsecured portion of an NPA account backed by residential mortgage net of specific
provision of 15% of outstanding and partial write off will be assigned __ risk weight
a. 20%
b. 50%
c. 75%
d. 100%
27. The unsecured portion of an NPA account not backed by residential mortgage net of specific
provision of at least 50% of outstanding and partial write off will be assigned __ risk weight
a. 20%
b. 50%
c. 75%
d. 100%
28. Under standardized approach which of the following securities is/are eligible for treatment as
credit risk mitigants
a. Cash
b. Gold
c. KVP/NSC provided no lock in period is operational and if they can be encashed with in the
holding period.
d. LIC Policy with declared surrender value
e. All the above
29. Under agriculture sector the thrust area would for increasing
a. Production Credit
b. Investment Credit
c. Both to be assigned equal thrust
d. Neither of a or b would be a thrust area
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30. In 2016 – 17 the thrust areas of lending would be
a. Retail Segment
b. Priority Sector credit
c. Advances to MSME
d. Export Credit
e. Productive Sector
f. All of the above
31. Loaning powers vested with the Scale II Managers for disposal of MSME applications is
upto an extent of
a. Powers of Scale-II Managers
b. Powers of Scale-III Managers
c. Powers of Scale-IV
d. Powers of Scale-V
32. The share of Micro enterprises in MSE lending should be increased to _______.
a. 50%
b. 55%
c. 60%
d. 65%
33. Loan amount above Rs.50 lakhs under MSME if covered with CGTMSE without collateral
security is to be examine by :
a. Incumbent Incharge
b. FGM
c. Circle Head
d. Head Office
34. Loaning powers vested with the Scale III and Scale IV Managers for disposal of MSME
applications is upto an extent of ____ of their vested loaning powers
a. 75%
b. 100%
c. 125%
d. 150%
35. For taking over the Standard borrowers from the other Banks the rating should be minimum
___
a. B1
b. A
c. AA
d. AAA
36. For taking over the Standard borrowers from the other Banks permitted by CMD/ED the
rating should be minimum ___ in large and mid corporate categories on merits of the case
within his vested loaning powers
a. B1
b. BB
c. A
d. AA
ZTC Dehradun Page 7

37. For issuance, discounting, negotiation of Inland letter of credit, it must be received through:
a. Paper mode
b. Paper or SFMS mode only
c. SFMS mode only
38. Take over of borrowal account upto the extent of their vested loaning powers can not be
permitted by the following
a. Circle Head (CM/AGM)

b. Circle Head (DGM/GM)
c. GM(HO)
d. Can be permitted by all the above
39. The permission may be given by the Circle Heads to incumbents of the select branches to
take over SME/ trading advances to the extent of ___ of their loaning powers
a. 50%
b. 75%
c. 100%
d. 125%
40. At places where LCBs are situated, MCBs to handle proposals between __ Crore & __
Crore
a. 2,25
b. 2,40
c. 5,25
d. 5,40
41. At places where LCBs are not situated, MCBs to handle proposals or Rs. __ Crore & above
a. 2
b. 3
c. 4
d. 5
42. CMs/AGMs/DGMs/COCAC & Above can exercise loaning powers to the extent of ___% in
A1 & A2 rated accounts and ___% of their normal loaning powers in case of A3 & A4 rated
accounts.
a. 100,75
b. 110,100
c. 125,110
d. 150,125
43. In case of export borrowers, officers upto AGM can exercise upto ___ % per borrower,
provided additional ___% are utilized only for export limits.
a. 110,10
b. 120,20
c. 125,25
d. 130,30
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44. The fresh proposals pertaining to NBFCs can be considered by
a. Branch only
b. Circle office only
c. FGMCAC & above only
d. Minimum one stage above the office under whose power the proposal falls
45. The renewal proposals pertaining to NBFCs can be considered by

a. Branch only
b. Circle office only
c. Head office only
d. Incumbents of LCBs/COCAD (DGM HEADED ) & above
46. The powers vested with Incumbents of LCBs/Circle Head (DGM/GM/COCAC),

GM(HO)/FGMCAC/HOCAC-I, ED/HOCAC-II, CMD/HOCAC-III for considering advances to
NBFCs is respectively __,__,__,__ % of vested loaning powers for fund based secured
advances.
a. 25,50,50,50
b. 50,50,75,75
c. 50,75,100,100
d. 50,75,100,125
47. Financing for MSME under exclusive scheme for women entrepreneurs for day care centre
/ crèches are named :
a. PNB Vanita
b. PNB Sanjeevani
c. PNB Nurture
d. NO such scheme exists in PNB
48. The adhoc facility to NBFCs may be allowed by Incumbents of LCBs/Circle head
(DGM/GM/COCAC) upto __% of sanctioned limit.
a. NIL
b. 30
c. 35
d. 50
49. The adhoc facility to NBFCs may be allowed by GM (HO)/FGMCAC/HOCAC-I upto__ % of

sanctioned limit.
a. NIL
b. 30 (or 400 lacs whichever is lower)
c. 35
d. 50
50. The adhoc facility to NBFCs may be allowed by ED/HOCAC-II upto __% of sanctioned limit.
a. NIL
b. 30
c. 35 (or 1125 lacs whichever is lower)
d. 50
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51. The adhoc facility to NBFCs may be allowed by CMD/HOCAC-III upto __% of sanctioned
limit.
a. NIL
b. 30
c. 35
d. 50
52. What is the MSME Loan application form number prescribed for credit requirement upto 100
lakhs
a. PNB 1166/2011
b. PNB 1166/2013
c. PNB 1085
d.PNB 1087A
53 What is the MSME Loan application form number prescribed for credit requirement above
100 lakhs and upto 200 lakhs
a. PNB 1016/2013
b. PNB 1166/2013
c. PNB 1017/2013
d. PNB 772
54. What is the MSME Loan application form number prescribed for credit requirement above
200 lakhs
a. PNB 1016/2013
b. PNB1085A
c. PNB 1017/2013
55. MSME loan new as well as existing units moratorium period for Term Loan and working
capital limits allowed between
a. 6 to 12 months to operation
b. 6 to 18 months to operation
c. 1 to 6 months to operation
d. No moratorium allowed
56. The linking of pricing with credit risk rating has been done in case of the borrowal accounts
having limits more than Rs. ___ lacs
a. 10
b. 20
c. 30
d. 40
57. What is minimum current ratio required for working capital limit sanctioined to MSME sector
upto 500 lakhs
a. 1.33:1.
b. 1:1
c. 1.50:1
d. 1.25:1
ZTC Dehradun Page 10

58. Farm sector scoring model to finance direct / allied / renewal / enhancement for amount not
exceeding :
a. 3 lakhs
b. 10 lakhs
c. 20 lakhs.
d. 50 lakhs
59. With regard to scoring pattern Yellow Zone is defined to consider sanction by next higher
authority. The score should be :
a. upto 40
b. Above 40 to 46
c. Above 40 to 50
d. All the above cases.
60. A MSME entrepreneur will said to have become sick if
a. If any of loan account remains NPA for 3 months or more

b. Erosen in networth to the extent of 50% of networth during previous year
c. Bank has declared Industry as a whole as sick
d. a & b above
61. What is the target fixed for minority community finance under National Goal of Priority
Sector
a. 8%
b. 7.5%
c. 5%
d. 15 % of Priority Sector
62. What is the sub target fixed for micro enterprises under the national goal
a. 4%
b. 7.5%
c. 18%
63. Which day will be treated as micro lending day at branches
a. Any one day in a week

b. One day in a month
c. Two days in a month
d. Saturday of every week
64. Mudra was launched on 08.04.2015 and applicable to non farm enterprises in
manufacturing, trading, services with limit upto
a. 5 lacs
b. 50 lacs
c. 10 lacs
d. Limit with no ceiling

65. Overdraft allowed under PMJDY for Rs.5000/- will be classified under:
a. Retail loan
b. Mudra Loan
c. Farm sector loan
66. As per RBI, the exposure ceiling to an individual borrower should not increase __% of
capital funds & __% if the additional __% are utilized for infrastructure projects
a. 5,10,5
b. 10,15,5
c. 15,20,5
d. 40,50,10
67. As per RBI the exposure ceiling to group borrowers should not increase __% of capital
funds & __% if the additional __% are utilized for infrastructure projects
a. 5,10,5
b. 10,15,5
c. 15,20,5
d. 40,50,10
68. In our Bank under the board approval the prudential credit exposure ceiling can be
exceeded upto 5 % of capital funds in case of
a. PSU borrowers based on their cash flows
b. Non – PSU borrowers having risk rating “A2‟ and above
c. Non – PSU borrowers irrespective of credit rating
d. a to c above
e. Only a & b above
69. In case of Oil sector RBI has decided to revise the exposure ceiling of 15% of capital fund in
case of individual borrowers to ____% of capital funds in respect of Oil companies who have
been issued Oil Bonds which do not have SLR status by Govt. of India.
a. 20
b. 25
c. 30
d. 40
70. Within the exposure ceilings prescribed by RBI, the internal exposure ceiling as a trigger
point for “A1”/‟A2‟ rated PSU borrowers, is __% of capital funds & __% if the additional __% is
on account of credit to infrastructure projects
a. 15,20,5
b. 14,17,3
c. 12,15,3
d. 9,12,3
e. 6,9,3
point for “A3‟ & “A4” rated borrowers, is __% of capital funds & __% if the additional __% is on
account of credit to infrastructure projects
a. 15,20,5
b. 14,17,3
c. 12,15,3
d. 9,12,3
e. 6,9,3

point for “B1”/”B2” & “B3” rated borrowers, is __% of capital funds & __% if the additional __% is
a. 15,20,5
b. 14,17,3
c. 12,15,3
d. 9,12,3
e. 6,9,3
point for “C1‟ rated borrowers, is __% of capital funds & __% if the additional __% is on account
of credit to infrastructure projects
a. 15,20,5
b. 14,17,3
c. 12,15,3
d. 9,12,3
e. 6,9,3
point for “C2‟ and “C3” rated borrowers, is __% of capital funds & __% if the additional __% is
a. 15,20,5
b. 14,17,3
c. 12,15,3
d. 9,12,3
e. 6,9,3
75. In our Bank the exposure ceiling for group borrowers other than infrastructure sector should
not increase __% of capital funds & __% if the additional __% are utilized for infrastructure
projects
a. 10,20,10
b. 20,30,10
c. 30,40,10
d. 40,50,10
76. In our Bank the exposure ceiling to group borrowers in infrastructure sector should not
increase __% of capital funds & __% if the additional __% are utilized for all infrastructure
projects
a. 10,20,10
b. 20,30,10
c. 30,40,10
d. 40,50,10
77. In case of proprietorship concern the exposure to a borrower by way of Fund Based/ Non
Fund based facility shall be restricted to ___ crore.
a. 30
b. 50
c. 75
d. 100

78. In case of partnership concern the exposure to a borrower by way of Fund Based/ Non Fund
based facility shall be restricted to ___ crore.
a. 30
b. 50
c. 75
d. 100
79. In case of a single entity with constitution as Society, Trust & HUF the exposure to a
borrower by way of Fund Based/ Non Fund based facility shall be restricted to ___ crore.
a. 30
b. 50
c. 75
d. 100
80. What do you mean by Shishu category under Pradhan Mantri mudra yozna
a. Loans upto a limit of Rs.50000/-

b. Loans upto a limit of Rs.5.00 lacs
c. Loans upto a limit of Rs.10 lacs
d. Loans without ceiling
81. What do you mean by Kishore category under Pradhan Mantri Mudra yozna

82. The unsecured exposure(**) ceiling should not exceed ___% of the total outstanding
advances, to be reviewed on the basis of the data as on close of previous
a. 10, quarter
b. 15, quarter
c. 25, year
d. 10, year
(**) Unsecured exposure is the exposure including all funded and non – funded facilities, where
the realizable value of tangible security is not more than 10% ab – initio of the outstanding
exposure
83. What do you mean by Tarun category under Pradhan Mantri Mudra yozna

84. The exposure ceiling for NBFC group exposure to be limited to __% of capital fund of the
Bank as per its last audited balance sheet & __% in case of infrastructure sector
a. 7,12
b. 10,15
c. 17,22
d. 40,30

85. The fresh exposure to film industry during current year is to be restricted to___ crore
a. 10
b. 20
c. 30
d. 40
86. The overall exposure ceiling for real estate sector has been fixed at __ % of total advances
of the Bank as at close of last .
a. 10, year
b. 20,year
c. 10,quarter
d. 20,quarter
87. Credit facilities allowed under Mudra scheme are guaranteed by __________ till mudra Ltd.
start functioning :
a. Farmers welfare trust
b. CGTMSE
c. NHRA
d. NABARD
88. Within an overall ceiling of 20% stipulated for real estate sector, the exposure ceiling on
commercial real estate as %age of total advances of bank as at close of last quarter is
__%
a. 4.50
b. 5.50
c. 7.50
d. 10.00
89. The exposure ceiling on land & building developers within overall ceiling of 10% fixed for
commercial real estate as %age of total advances of bank as at close of last quarter is __%
a. 2
b. 3
c. 2
d. 5
90. The exposure ceiling on other commercial real estate i.e. IPs (Commercial), lease rentals,
Hotels etc. within overall ceiling of 10% fixed for commercial real estate as %age of total
advances of bank as at close of last quarter is __%
a. 1
b. 2
c. 3
d. 4
91. In terms of RBI guidelines, the ceiling on capital market exposure is fixed at __% of its
net worth on a solo & consolidated basis
a. 20
b. 30
c. 40
d. 50

92. Effective 01.04.2016 Loan pricing will be done by banks on the basis of :
a. Base rate basis

b. MCLR basis
c. BPLR basis
d. PLR rate basis
93. New conceipt of pricing of loans effective 1.4.2016 will be reviewed on Ist date of every :
a. Quarter
b. Month
c. Year
d. No review required
94. A sub ceiling of __ within an overall ceiling of 10% of net worth of bank for advance to any
single stock broking entity(FB & NFB) is applicable
a. 2%
b. 5%
c. 50 Crore
d. 100 Crore
95. The exposure ceiling in respect of aggregate outstanding credit (FB & NFB) to renewable
energy has been fixed at __% of the total advances of the Bank as at the close of previous
quarter
a. 1
b. 2
c. 3
d. 4
96. A business enterprise having sales turnover upto Rs. 25 Crore and limits above Rs. 2 lacs
and upto Rs. 50 lacs will be covered under the following credit risk rating model?
a. Mid Corporate
b. Small Loans
c. Small Loans – II
d. Entrepreneur, New Business including trading
97. A trading concern having sales turnover of Rs. 100 Crore and limits of Rs. 15 crore will be
covered under the following credit risk rating model?
a. Mid Corporate
b. Large Corporate
c. Small Loans
d. Small Loans – II
98. Half yearly review of credit risk rating is applicable in case of
a. Listed Companies rated on large / mid corporate rating models

b. Other borrowal accounts rated on large / mid corporate rating models and availing limits
(FB+NFB) above Rs. 50 Crore from our Bank
c. Either a or b
d. Neither a nor b
99. Which of the following types of advances are exempted from credit risk rating Model?

a. Loans against Shares & Debentures
b. All Accounts with sanctioned limits of Rs. 2 Lacs & below
c. Loans under LUCC and advances against warehouse receipts of CWC
d. Advances to individuals under Agriculture (Direct), Agriculture (Indirect), Other Priority
Sectors including Transporters, Artisan and Handicrafts.
e. All the above
100. Which of the following types of advances are not exempted from credit risk rating Model?
a. Loans against Shares & Debentures
b. Accounts with sanctioned limits of Rs. 40 Lacs
c. Advances under Retail Banking Segment
d. Staff Loans
101. In borrowal accounts with aggregate credit limits of Rs. __ lacs & above and value of IP to
be mortgaged/charged is Rs. __ lacs & above, the branches to get the valuation of IP done from
a valuer on Bank‟s approved panel.
a. 10,20
b. 20,30
c. 30,40
d. 40,50
102. If the value of IP to be mortgaged/charged is Rs. __ Crore & above, the branches to get
the valuation of IP done from minimum __ valuer/s on Bank‟s approved panel.
a. 2,1
b. 2,2
c. 5,1
d. 5,2
103. In existing borrowal accounts with aggregate credit limits of Rs. 10 lakh & above and value
of immovable property mortgaged/charged to the bank is Rs. 20 lakhs & above, the periodicity
for valuation of IP from any approved valuer on Bank‟s panel is once in ___ years
a. 2
b. 3
c. 4
d. 5
104. The term loans with remaining maturity period of above 5 years shall not exceed __% of
the term deposits with remaining maturity period of above 5 years
a. 20
b. 30
c. 40
d. 50
105. The vetting of loan documents is to got done from the approved advocate in case
ofborrowal accounts with sanctioned limit of Rs. __ Crore & above (FB+NFB)
a. 2
b. 3
c. 4
d. 5
106. The legal compliance certificate is to be submitted by branches for all credit limits of Rs. __
lacs & above
a. 5

b. 10
c. 15
d. 20
107. All standard credit risk rated accounts with exposure of Rs. __ Crore & above for both
individual & group accounts shall be subjected to credit audit
a. 5
b. 10
c. 15
d. 20
108. Weak accounts (“C1‟, “C2” & “C3‟ rated) which are being separately monitored by the
Bank with outstanding balance of Rs.__ crore & above will be subjected to credit audit
a. 5
b. 5
c. 8
d. 10
109. ___% accounts selected with exposure between Rs. 5 crore & Rs. 10 crore and
outstanding balance of Rs. 3 crore & above, on random basis shall be subjected to credit audit
a. 2
b. 3
c. 4
d. 5
110. The frequency of credit audit in “A1” to “A4” and “B1” rated accounts will be on
a. Monthly basis
b. Quarterly basis
c. Half Yearly basis
d. Yearly basis
111. The frequency of credit audit in ‟B2” & “B3‟ rated accounts will be on
a. Monthly basis
b. Quarterly basis
d. Yearly basis
112. The frequency of credit audit in “C1‟ To “C3‟ rated accounts will be on
a. Monthly basis
b. Half Yearly basis
d. Yearly basis
113. The frequency of credit audit under Central PSUs accounts (irrespective of risk rating) will
be on
a. Monthly basis
b. Quarterly basis
d. Yearly basis
114. Annual stock audit in all accounts with risk rating B2 to C3 & NPA Accounts enjoying fund
based & non fund based working capital limit of Rs. __ crore & above is compulsory
a. 1

b. 2
c. 3
d. 4
115. Annual stock audit should be got compulsorily done in respect of all borrowers under
standard category enjoying fund based & non fund based working capital limit of Rs. __ crore &
above from our Bank
a. 2
b. 3
c. 5
d. 10
116. Credit monitoring Division, HO monitors all weak/irregular accounts under standard
category having outstanding of above Rs.__ crores on daily basis
a. 5
b. 25
c. 50
d. 100
117. For Industry where no exposure ceiling have been fixed, exposure ceiling will betaken as:
a. 50% of bank’s gross advances

b. 1% of bank’s gross advances
c. 2.50% of bank’s gross advances
d. No ceiling prescribed
118. Modest risk is the term associated with which of the following credit risk rating
a. PNB A1
b. PNB A3
c. PNB A2
d. PNB A4
119. Marginally acceptable risk is the term associated with which of the following credit risk
rating
a. PNB A1
b. PNB A4
c. PNB A3
d. PNB A2
120. Average risk is the term associated with which of the following credit risk rating
a. PNB A1
b. PNB B2
c. PNB B1
d. PNB B3
121. Under credit risk rating, how many categories are there for NPA ratings
a. 3
b. 5
c. 7
d. 9

122. The credit risk rating of a borrower shall become due for updation after the expiry of ___
months from the confirmation of rating or ___ months from the date of Balance sheet, on the
basis of which the rating was assigned, whichever is earlier.
a. 9,15
b. 12,18
c. 15,21
d. 18,24
123. The credit risk rating of a borrower shall become overdue after the expiry of ___ months
from the confirmation of rating or ___ months from the date of Balance sheet, on the basis of
which the rating was assigned, whichever is earlier.
a. 9,15
b. 12,18
c. 15,21
d. 18,24
124. The sanctions in respect of Working capital and Term Loan facilities shall be valid for a
period of ___ months from the date of sanction
a. 6
b. 9
c. 12
d. 15
125. The lapsed sanction can be revalidated by the competent authority within a maximum
period of ___ months from the date of sanction
a. 6
b. 9
c. 12
d. 15
126. _____ which has been launched on 01.11.2013 for financing professionally
qualified medical practitioners under Micro, Small and Medium Enterprises in service
sector.
a. PNB Sanjeevani
b. PNB Arogya
c. PNB Swasthya
d. PNB Nirogdham
127. ___ MSME Credit Growth Initiative branches have been identified with to achieve
__% YoY growth of MSME and reduce TAT to 2-4 weeks (turnaround time) in the
identified branches
a. 150, 20%
b. 414, 30%
c. 350, 40%
d. 450, 50%

128. The scoring in PNB Score and PNB Score SME is mandatory The Score Card IDs
generated by PNB Score and PNB Score SME are also mandatorily entered in CBS in __
a. S‟ details
b. V‟ details
c. Y‟ details
d. T‟ details
129. To enable bank to surpass the benchmark of 60% under CD ratio of rural and
semi-urban areas. Bank aims to achieve the following National Goals under women
beneficiaries Advances:
a. 2
b. 3
c. 5
d. Nil
130. Credit Audit of “A1‟ to „A4‟, „B1‟ to B3‟ rated standard a/cs with exposure above Rs. 20
crores (individual & group) is to be done by
a. Concurrent Auditor
b. CARD Auditor
c. RBI Auditor
d. By external chartered accountant
131. Credit audit of weak (C1 to C3 rated) accounts with exposure of 5 crores and
above is to be done by following
a. Concurrent Auditor /chartered accountant

b. CARD Auditor
c. RBI Auditor
d. No audit required
132. Export credit shall remain our thrust area and our endeavour will be to achieve the ratio of export
credit to net bank credit of______ %.
a) 5
b)10
c) 12
d) 9
133. Circle Risk management department functions under the administrative control of:

a. FGM
b. Circle Head
c. 2nd senior most official of the circle
d. Any senior official of the circle as assigned by Circle Head
134. Adhoc credit facility can be allowed for a fixed period at ____%age of total
sanctioned limit by the branches:
a. 10%
B. 7%
c. No Adhoc facility allowed at branch
135. Risk weight assigned to the foreign sovereigns is:
a. 10%
b. 20%
c. 30%
d. As per rating assigned by international rating agencies
136. Risk Weight on unrated exposure in case of Corporate under long term ratings
is___ and that under short term rating is ___________
a. 30%,30%
b. 50%,50%
c. 100%,100%
d. 150%,150%
137. Claims included in the regulatory retail portfolio other than NPAs shall be assigned
a risk weight of ___
a. 50%
b. 75%
c. 100%
d. 125%
138. Risk weight in case of capital market exposure would be ____
a. 50%
b. 75%
c. 100%
d. 125%

139. The claims on the rated as well as unrated NBFC-NDSI (other than IFCs/AFCs),
regardless of the amount of claim, shall be uniformly risk weighted at ____
a. 75%
b. 100%
c. 125%
d. 150%
140. The unsecured portion of an NPA account backed by residential mortgage net of
specific provision of at least 20% and upto 50% of outstanding amount of NPA, and
partial write off will be assigned __ risk weight
a. 20%
b. 50%
c. 75%
d. 100%
141. Under standardized approach which of the following is not a part of Credit Risk
Mitigant?
a. Securities issued by Central / State Governments
b. Units of mutual fund regulated by the securities regulator
c. NSC/KVP/IVP & LIC Policies with declared surrender value
d. Equities including convertible bonds
142. Based upon the results of the risk management model developed by the Bank, the
Bank has prescribed various risk strategies for credit portfolio, which involve the
following:
a. Identification of the target market for the Bank
b. Decision on risk acceptance level
c. Quantitative exposure ceiling
d. All the above
e. None of the above
143. Under advances to retail segment, the policy of the Bank is to improve the branch
wise recovery to minimum ___% and NPAs of less than ___%.
a. 90,2
b. 90,1
c. 95,2
d. 95,1
144. Under regulatory guidelines, the maximum aggregated retail exposure to one
counterpart should not exceed a threshold limit of Rs. ___ Cr.
a. 2
b. 3
c. 4
d. 5

145. Effective 01.04.2016 Clean overdraft limit to Staff members under Staff welfare
scheme is to be allowed to member of Staff at the interest rate of
a) Base rate
b) MCLR
c) Lower of the two
d) None of the above
146. Although minimum MCLR rate is to be published are 5 but how many MCLR are
published by our bank effective 01.04.2016:
a) 5
b) 7
c) 6
147. As per Bank guidelines, which of the following is correctly matched in respect of
time limit for disposal of loan applications of MSME advances?
a. Upto Rs. 2 lakh 2 weeks

b. Above Rs. 2 lakh & Upto Rs. 50 lakh 4 weeks
c. Above Rs. 50 lakh & Upto Rs. 100 lakh 5-6 weeks
d. Above Rs. 100 lakh & Upto Rs. 100 Crore 6-7 weeks
e. Above Rs. 100 Crore 8-9 weeks
f. All the above are correctly matched.
148. What is the overall ceiling fixed for energy sector as on close of previous quarter
a. 1%
b. 11%
c. 111%
149. What is the overall exposure limit for renewable energy fixed within over ceiling of
energy sector
a. 1%
b. 11%
c. 111%
150. For determining the interest rates what is the rate of Term Premia which is added
to all Term Loans repayable in 3 year & above
a. 0.25%
b. 0.50%

c. 0.75%
d. 1.00%
151. The Base Rate System is mandatorily applicable for all new loans (sanctioned and
disbursed after?
a. 01.04.2010
b. 01.07.2010
c. 01.10.2010
d. 31.12.2010
152. While considering the Short Term Loan, the credit risk rating reckoned should be
based upon the Balance Sheet which should not be more than ___ months old.
a. 12
b. 15
c. 18
d. 24
153. An account is considered special mention account if it is irregular/ weak for the
following period
a. Account shows signs of incipient stress

b. Principal or interest overdue between 31 to 60 days
c. Principal or interest payment overdue between 61 to 90 days
d. All of the above
154. Within an overall ceiling of 20% stipulated for real estate sector, the exposure
ceiling for residential mortgages is
a. 5
b. 6
c. 7
d. No sub ceiling
155. The maximum ceiling prescribed by RBI for advances to individuals against the
security of shares and debentures in physical form is Rs. ___lacs and against those in
Dematerialized form is Rs. ____ lacs
a. 5,10
b. 10,20
c. 15,30
d. 20,40

156. As per RBI guidelines, while computing Bank‟s exposure to capital markets, which
of the following components should not be reckoned as Bank‟s exposure under capital
market
a. Infrastructure advances, if secured by pledge of promoters‟ shares in the SPV of an

infrastructure project.
b. Bank‟s exposure to Stock Brokers under the currency derivative segment including
BGs issued under this segment
c. Both the above
157. What variation is called a significant variation in the realizable value of security as
reported by the valuer and as assessed by the incumbent
a. 10% & Above

b. 15% & Above
c. 20% & Above
d. 25% & Above
158. If the value of security as assessed by the valuer is Rs. 60 lacs and that assessed
by the incumbent is Rs. 50 lacs, what value is to be taken as the realizable value of
security
a. 60 lacs
b. 50 lacs
c. Lower of (a) & (b)
159. Bank’s cannot grant any loan or advance on the security of its own shares under
section _________ of Banking Regulation Act 1949
a. 19(2)
b. 20(1)(a)
c. 19(3)
d. 18
160. A housing loan to an individual with an outstanding of 75 lacs and LTV of 80% will
be assigned a risk weight of
a. 50%
b. 75%
c. 100%
d. 125%
161. For housing loans of upto Rs. 20 lacs the upper ceiling on LTV Ratio is

a. 75%
b. 80%
c. 90%
d. 95%
162. For housing loans of above Rs. 75 lacs the upper ceiling on LTV Ratio is
a. 75%
b. 80%
c. 90%
d. 95%
163. Bank cannot hold shares in any company whether pledge, mortgagee or absolute
owner of amount exceeding 30% of paid up share capital of company or 30% of own
paid up share capital and reserve under section _______ of Banking Regulation Act:
a. 19(2)&(3)
b. 20
c. 20(1)(a)
d. 20(1)(b)
164. Under MSME Sector which of the following categories are exempted for credit
scoring model
a. Limit of 2 lakhs & below

b. Advances for Taxi, Station wagon etc
c. Advances for documentary films
d. All of the above
165. The annual growth in number of accounts of lending to Micro enterprises should b
a. 10%
b. 15%
c. 20%
d. 25%
166. As per Banks guidelines‟, MSE proposals up to Rs. ___ lakh, which are eligible
under Credit Guarantee Scheme of CGTMSE, are to be sanctioned by the competent
authority without taking any collateral security/third party guarantee.
a. 10
b. 20
c. 50
d. 100

167. For the on – line MSE applications filed by the applicants Bank would provide a
concession of ___ in processing/upfront fee.
a. 10%
b. 20%
c. 25%
d. 50%
168. Annual review of term loans other than retail category needs to be done where
sanction limit is
a. 5 crores & above

b. 1 crore and above
c. 2 crore and above
d. Every term loan is to be reviewed
169. Special Mention Assets (SMA) which are weak / irregular with sub-categories SMA-
1 shall be those accounts in which
a. Principal or interest payment not overdue for more than 30 days, but account
showing signs of incipient stress
b. Principal or interest payment overdue between 31 to 60 days
171. Joint lending arrangements involving more than one PS Bank with a single
borrower is applicable to credit limits (FB & NFB)
a. Rs.100 crore & above

b. Rs.150 Crore & above
c. Rs.500 crore & above

173. For computing the exposure for monitoring of prudential limits fixed by RBI, the
following amount in Loan account should be taken into consideration
a. Outstanding Balance in the Loan Account

b. Sanctioned Limit
c. Higher of „a‟ or „b‟
d. Lower of „a‟ or „b‟
174. A Bank cannot hold shares in any company, whether as pledgee, mortgagee or
absolute owner of an amount exceeding
a. 30% of the paid-up share capital of the company

b. 30% of the own paid up share capital and reserves
c. Lower of „a‟ or „b‟
d. Higher of „a‟ or „b‟
175. The amount of advances granted by a Bank against the security of its own shares
is
a. Rs. 10 Lakh
b. Rs. 20 Lakh
c. Rs. 50 Lakh
d. No advance can be granted
176. If the value of Plant & Machinery (P&M) to be mortgaged/charged is Rs. __ Crore
& above, the branches to get the valuation of P&M done from minimum __ valuer/s on
Bank‟s approved panel.
a. 50,2
b. 10,2
c. 25,2
d. 50,2
177. Monitoring of weak and irregular accounts having outstanding of Rs. 45 lacs is to
be done by the following authority
a. Incumbent Incharge of Small/Medium/ Large Branch/VLB

b. Circle Heads / AGM/CM/ FM –CREDIT, FM-RD, DESK OFFICER
c. Committee of GMs
d. ED/CMD

178. “Credit risk” is the possibility of loss associated with changes in
a. the credit quality of the borrowers

b. the credit quality of the counter parties
c. Either „a‟ or „b‟ above
179. All standard risk rated accounts with exposure of Rs.10 Crores and above for both
individual and group accounts except will be covered under credit audit.”
a. Retail Banking segments

b. Advances against Bank Deposits, LIC policies, Govt. securities, Gold/silver jewellery &
ornaments,
c. Advance against shares, debentures & Mutual Fund
d. All of the above
180. The Credit approval committee at HO HOCAC Level – I will deal credit proposals
upto a maximum of Rs. ____ Crore.
a. 35
b. 75
c. 100
d. 150
181. The Credit approval committee at HO HOCAC Level – II will deal credit proposals
a. 50
b. 150
c. 200
d. 400
182. The Credit approval committee at HO HOCAC Level – III will deal credit proposals
a. 50
b. 100
c. 200
d. 400
183. To complete the quorum of Credit Approval Committee the minimum no. of
members should be ____, with the presence of the Head of committee being
mandatory.
a. 2

b. 3
c. 4
d. No such no. is prescribed
184. For credit proposals beyond Rs. 1 crore and upto Rs. 100 crore, the maximum
prescribed time period for disposal is
a. 2 to 3 weeks
b. 3 to 5 weeks
c. 6 to 7 weeks
d. No such period is prescribed
185. Claims on corporate having short term external rating of A4 & D is assigned __ risk
weight
a. 30%
b. 50%
c. 100%
d. 150%
186. Claims on corporate having short term external rating equal to A3 is assigned __
risk weight
a. 30%
b. 50%
c. 100%
d. 150%
187. 20% risk weight is assigned to corporate having short term external rating of
a. A1+
b. A1
c. A2
d. A3
e. A4
188. 50% risk weight is assigned to corporate having short term external rating of
a. A1+
b. A1
c. A2
d. A3
e. A4
189. 30% risk weight is assigned to corporate having ____ short term rating of ____

a. external, A1
b. internal, A1
c. external, A2
d. internal, A2
190. Claims on foreign Banks will have the risk weight
a. Upto 125% depending upon CRAR

b. Upto 425% depending upon CRAR
c. Upto 625% depending upon CRAR
d. As per the risk rating assigned by international rating agency
191. As per scoring model for sanction of fresh cases under PNB Sanjeevni & PNB
Kushal Vyapari which of the following score model is applicable upto Rs.50 lacs
a. PNB Score SME

b. PNB Track
c. PNB Score
d. No score required
192. What is the threshold limit for an individual housing loan to be a part of the retail
banking segment for the purpose of reporting
a. Rs. 2 Crore
b. Rs. 5 Crore
c. Rs. 10 Crore
d. No upper ceiling
193. For providing Working Capital through simplified turn over method (Nayak
Committee), to MSEs units (Manufacturing & Services), the credit requirement should
be up to
a. Rs. 1 Crore
b. Rs. 2 Crore
c. Rs. 4 Crore
d. Rs. 5 Crore
194. For providing Working Capital through simplified turn over method (Nayak
Committee), to Retail Trade, the credit requirement should be up to
a. Rs. 1 Crore
b. Rs. 2 Crore
c. Rs. 4 Crore
d. Rs. 5 Crore
195. The periodicity for valuation with approved valuer would be once in ____ years

a. 1
b. 2
c. 3
d. 5
196. Credit Approval Committees at CO level I and II replaced by which Committee:
a. COCAC-II & COCAC-III

b. COCAC & FGMCAC
c. COCAC-I & FGMCAC-I
d. COCAC-II & FGMCAC-II
197. With the objective to improve the banking sector‟s ability to absorb shocks arising
from financial and economic stress, Bank has implemented the Basel III guidelines w.e.f
___ on the basis of regulatory guidelines.
a. 01.04.2013
b. 01.07.2013
c. 01.10.2013
d. 01.12.2013
198. Under Basel III, Risk Weights shall be based on
a. Common Equity level

b. Capital Conservation Buffer
c. Both of Above
d. None of them
199. The IRB approach is classified into Foundation IRB (FIRB) approach and Advanced
IRB (AIRB) approach. The bank has got approval from RBI to move to ____approach
and parallel run of the same for regulatory capital calculation for credit risk.
a. Foundation IRB
b. Advanced IRB
c. Both of Above
d. None of them
200. The score card ID generated are to be mandatorily entered in CBS ‘V’ details in the
following fields:
a. PNB Score free text code 1

b. PNB Score SME for free text code 6
c. Both a & b

201. To address the credit and fraud risks shall include the following::
a. Identity Proof of the customer, market information and adhering to KYC norms;
b. Proper selection of Customer Point Verification Agencies (CPVAs), their training and
periodic reviews.
c. Taking immediate action including de-paneling and informing the respective
controlling agencies of Advocates/Valuers/ Chartered Accountants/ CPVAs for taking
action, wherever required.
d. All of Above
202. Advances under retail loan schemes will be encouraged to increase the priority
sector portfolio and meet the needs of various segments of Society, which includes :
a. Loans to Pensioners
b. Loan against Gold and Silver jewellery
c. Popularizing Housing Loans to EWS/ LIG categories under Rajiv Rinn Yojna and
covered under Credit Risk Guarantee Fund Scheme for Low Income Housing
(CRGFSLIH).
d. All of above
203. Apart from thrust on investment credit, More focus on:
a. PNB Krishi Bhu- Swami Yojana (PNB Agriculture Land purchase Scheme)
b. Commercial Dairy
c. Kalyani Card Scheme
d. Allied agricultural activities like poultry, fishery, piggery, sheep/ goat etc.
e. All of the above
204. Under MSME, in line with GOI policy directives to achieve 20% Year on Year
growth in credit to Micro, Small & Medium sector, the Bank envisages growth of
a. at least 20%.
b. at least 30%.
c. at least 40%.
d. at least 50%.
205.For assessment of credit facilities to Film production accounts which of the

following method of credit assessment will be used:
a. Cash budget system

b. MPBF System
c. Nayak committee simplified turnover method
d. As per brand value of the producer

ANSWERS
1 D 26 D 51 D 76 D 101 A 126 A 151 A 176 A 201 D
2 C 27 B 52 B 77 B 102 D 127 B 152 B 177 B 202 D
3 B 28 E 53 A 78 C 103 B 128 B 153 D 178 C 203 E
4 A 29 B 54 C 79 D 104 D 129 C 154 D 179 D 204 A
5 C 30 F 55 A 80 A 105 A 130 B 155 B 180 B 205 A
6 A 31 B 56 B 81 B 106 B 131 A 156 C 181 B
7 C 32 C 57 D 82 B 107 B 132 C 157 D 182 D
8 B 33 B 58 D 83 C 108 A 133 C 158 C 183 D
9 D 34 D 59 B 84 D 109 D 134 C 159 B 184 C
10 C 35 A 60 D 85 B 110 D 135 D 160 A 185 D
11 D 36 A 61 D 86 D 111 D 136 C 161 C 186 C
12 C 37 C 62 B 87 B 112 B 137 B 162 A 187 A
13 A 38 A 63 A 88 D 113 D 138 D 163 A 188 C
14 A 39 A 64 C 89 C 114 C 139 B 164 D 189 A
15 B 40 C 65 B 90 A 115 C 140 C 165 A 190 D
16 B 41 D 66 C 91 C 116 A 141 D 166 A 191 C
17 A 42 C 67 D 92 B 117 B 142 E 167 B 192 D
18 A 43 C 68 E 93 B 118 B 143 A 168 B 193 D
19 B 44 C 69 B 94 D 119 D 144 D 169 B 194 B
20 B 45 D 70 A 95 A 120 C 145 B 170 C 195 C
21 D 46 A 71 B 96 C 121 A 146 B 171 B 196 B
22 D 47 C 72 C 97 A 122 B 147 F 172 A 197 A
23 A 48 A 73 D 98 C 123 C 148 B 173 C 198 C
24 A 49 B 74 E 99 E 124 A 149 A 174 C 199 A
25 C 50 C 75 D 100 B 125 C 150 B 175 D 200 C

QUESTION – ANSWER - RETAIL LENDING SCHEME
1) What is maximum loan limit that can be availed for construction / purchase of House
under PNB Housing loan scheme for public
a) 10 lacs
b) 50 lacs
c) 100 lacs
d) Need based depending upon project / repay capacity
2) What is the maximum loan limit can be availed for Repair / Renovation / alteration
under PNB Housing loan scheme for public
a) 10 lacs
b) 20 lacs
c) 30 lacs
d) 25 lacs
3) What is the maximum loan limit that can be availed for furnishing under PNB Housing
loan scheme for public
a) 10% of loan for repair with maximum 2 lacs

b) 10% of housing loan maximum 5 lacs
c) 25% of loan for repair maximum 2.50 lacs
d) 10% of loan for repair maximum 1 lac
4) What is the maximum finance available for Earnest money deposit for purchase of
House / flat and what is margin percentage
a) 2.00 lacs & 10%

b) 10.00 lacs and 15%
c) 15.00 lacs and NIL
d) 10.00 lacs and 10%
5) What is the maximum permissible deduction inclusive of proposed Housing loan when
Net monthly salary/ Income of the borrower is between 60000 to 1.00 lac
a) 40%
b) 50%
c) 60%
d) 70%
6) What should be maximum LTV in respect of housing loans above Rs.75 lacs
a) 90%
b) 80%
c) 75%
d) 50%
7) What should be maximum LTV in respect of Housing Loans upto 75 lacs

a) 90%
b) 80%
c) 75%
d) 50%
8) In respect of Housing loan 0.50% extra interest is charged on Housing Loan for
a) 3rd House
b) 2nd House
c) 4th House
9) What is the repayment period in Housing Loan for Repair and Renovation
a) 15 Years
b) 20 years
c) 25 years
d) 10 years
10) What is the rate of processing fees on Housing loans with limit upto 300 lacs
a) 0.90% of loan amount plus service tax

b) 0.50% of loan amount plus service tax
c) 1.00% of loan amount plus service tax
d) 2.00% of loan amount plus service tax
11) EM of IP or pledge of NSCs etc. up to ________% of loan amount is taken if property is

being purchased from 1st power of attorney holder and hwere there is delay in
execution of Tripartite agreement or where mortgage is not possible being ancestral
property or Lal Dora land :
a) 50%
b) 75%
c) 100%
d) 125%
12) Penal interest @ 2% is charged if construction of the house is not completed within a
period of ________.
a) 3 years
b) 4 years
c) 5 years
13) What should be maximum LTV in respect of small Housing Loans upto 20 lacs
a) 90%
b) 80%
c) 75%
d) 50%

14) OD facility can be allowed to existing Housing Loan borrowers if there is no irregularity.
The minimum and maximum OD limits are:
a) Minimum 1 lac and maximum 5 lac

b) Minimum and maximum 5.00 lacs
c) Minimum Rs.50000/- and no maximum
d) Minimum Rs.50000/- and maximum Rs.25.00 lacs
15) Sanctioning authority (Branch Incumbent) can allow repayment of housing loan upto
maximum age of the borrower :
a) 60 years
b) 70 years
c) 75 years
16) PNB Flexible housing loan facility cannot be availed for
a) Purchase of Land/ plot

b) construction of house
c) Purchase of built house
17) To avail loan under PNB Flexible Housing Loan scheme age of the applicant should be
less than :
a) 70 years
b) 65 years
c) 50 years
d) 60 years
18) Under PNB flexible housing loan scheme enhancement of OD limit to the extent of 20%
of original limit will be allowed after expiry of how many years:
a) 3 years
b) 4years
c) 5 years
19) What is the maximum loan allowed for Solar power system being a part of housing loan
a) 5 lacs
b) 2 lacs
c) 4 lacs
d) 2.50 lacs
20) What will be the maximum repayment period for financing solar power system on
standalone basis
a) As per housing finance scheme

b) 60 months
c) 36 months
d) 30 years

21) What will be the maximum repayment period for financing solar power system where
property is mortgage with the bank
a) As per housing finance scheme

b) 60 months
c) 36 months
d) 30 years
22) What will be maximum loan amount allowed for purchase of Land / Plot for house
building :
a) Any amount upto 60% of the repaying capacity

b) 50 lacs & upto 100 lacs by CH in Metro/State capital
c) upto 300 lacs by FGMCAC in all centres & 500 lacs in State capitals
d) b & c above
23) What is the margin in percentage for purchase of land / Plot for housing building
a) 40%
b) 50%
c) 25%
d) As per Housing loan scheme
24) In case of land / plot purchased out of bank loan is sold out or a/c closed without
construction within 5 years from the date of first disbursement, rate of interest will be
charged from the date of first disbursement as applicable to :
a) Bank’s Housing loan scheme

b) Commercial real estate
c) a or b whichever is higher
25) Effective 01.04.2016 Retail Asset branches working as specialized branches for retail
credit dispensation has to work as back office and renamed as:
a) Retail Asset branch

b) Retail Asset processing centre
c) Housing loan branch
26) What is the maximum age limit to finance under PNB Gen next housing finance scheme
for public
a) 70 years
b) 60 years
c) 40 years
d) 65 years

27) What is the occupational eligibility and minimum net monthly salary to allow PNB Next
generation housing finance to public :
a) Business class and Rs.20000

b) Salaried and Rs.35000/-
c) Agriculturist and Rs. 60000/-
d) All are eligible
28) What is the minimum loan amount under PNB Next generation housing finance scheme
to public :
a) 5 lacs
b) 10 lacs
c) 20 lacs
d) 50 lacs
29) Although need based finance can be allowed under PNB Next generation HL scheme,
what is the Eligible loan amount under PNB Next generation housing finance scheme
to public :
a) Loan amount calculated as per regular housing loan method

b) 1.25 times of loan amount calculated as per regular HL method
c) 1.50 times of loan amount calculated as per regular HL method
30) Moratorium period allowed under PNB next generation HL scheme will be :
a) Under construction flats 60 months other 36 months

b) 60 months in all cases
c) 36 months in all cases
d) 18 months in all cases
31) Car loan can be availed by individuals and professionals with minimum income of
Rs._______ per month
a) 10000/-
b) 15000/-
c) 20000/-
d) No such condition applicable
32) Individuals can avail car loan equal to 25 months net monthly salary or _______ lac
whichever is lower for one or more vehicles.
a) Rs.25 lacs
b) Rs.100 lacs
c) Rs.50 lacs
d) No limit
33) Margin in percentage on advance for new and old car
a) 15% and 30%

b) 10% and 25%
c) 25% and 30%

d) 30% and 40%
34) What is the maximum age for EMI in case of car loan
a) 60 years relaxable upto 70 years

b) 65 years relaxable upto 70 years
c) 65 years with no relaxation
d) 70 years with no relaxation
35) In car loan carry home pay should not be less than 50% of gross salary but if gross
salary exceeds 30000/- and 100000/- per month deduction can be permitted upto _____% and
_______% respectively :
a) 60% and 70%

b) 50% and 60%
c) 60% and 75%
d) 50% and 70%
36) Upfront fee on Car loan is charged @_____ % of the loan subject to maximum 6000/-
exclusive of service tax.
a) 0.5%
b) 0.9%
c) 1.00%
d) 2.00%
37) In car loan, guarantee/ collateral is waived for permanent employees of central Govt./
State Govt. / PSUs etc and also for other salaried class where cost of car exceeds
Rs.___
a) 3.00 lacs
b) 4.00 lacs
c) 5.00 lacs
d) 6.00 lacs
38) In car loan account if borrower does not furnish guarantee, collateral in the shape of
______ % of loan amount can be accepted to secure the bank loan.
a) 100%
b) 125%
c) 150%
d) 200%
39) What is the maximum repayment period in case of car loan – old vehicle.
a) 60 months
b) 84 months
c) 108 months
d) 120 months
40) What is the maximum repayment period in case of car loan new vehicle
a) 60 months

b) 84 months
c) 108 months
d) 120 months
41) To sanction Car loan to a prospective borrower which of the following documents are
not required :
a) Loan application along with KYC documents

b) Salary / Income certificate
c) Driving license
d) All are required
42) What is the car dealer service charges payable in respect of tie up arrangements
a) 1% of the loan amount maximum 10000/-

b) 1.50% of loan amount maximum 15000/-
c) 2% of loan amount maximum 5000/-
d) No service charges are payable.
43) What are the income criteria in two wheeler loan under PNB Saarthi scheme
a) Rs.5000/- per month

b) Rs.10000/- per month
c) Rs.60000/- per month
d) No income criteria
44) In scooter loan suitable guarantee is required, if loan amount is more than Rs._____
a) 20000/-
b) 25000/-
c) 50000/-
d) 60000/-
45) What is the maximum loan amount for purchase of new two wheeler
a) 60000/-
b) 100000/-
c) 80000/-
d) Need based finance is to be sanctioned
46) What is the maximum repayment period for scooter / motorcycle
a) 84 months
b) 60 months
c) 24 months
d) 48 months
47) How much amount is charged from a student borrower availing scooter loan as
processing fee ?
a) Rs.270/- plus tax

b) Rs.470/- plus tax

c) Rs.275/- plus tax
d) No processing fee is charged
48) Time norms for Non mortgage loans to the customers other than RAB branches to be
adhered to:
a) 7 days
b) 5 days
c) 10 days
d) 3 days
49) Time norms for mortgage loans to the customers other than RAB branches to be
adhered to :
a) 7 days
b) 5 days
c) 10 days
d) 3 days
50) In PNB Saarthi scheme what is the margin %age for borrowers whose salary is being
disbursed through concerned branch or check off facility is there
a) 10%
b) 15%
c) 20%
d) 25%
51) What do you mean by PNB power ride scheme
a) New two wheeler scheme

b) New two wheeler scheme for women
c) Car loan scheme for women
52) What is the minimum and maximum age limit for PNB power ride scheme
a) 18 years and 60 years

b) 18 years and 65 years
c) 21 years and 60 years
d) 18 years and 48 years
53) To sanction two wheeler loan under PNB power ride scheme which of the following
documents are not required :
a) Loan application along with KYC documents

b) Salary / Income certificate
c) Driving license
d) All are required
54) What is the minimum net monthly of the borrower under PNB power ride scheme of the
bank :

a) 20000/-
b) 8000/-
c) 10000/-
d) NO income ceiling prescribed
55) What is the maximum loan amount under PNB power ride scheme
a) 100000/-
b) 60000/-
c) 50000/-
d) 25000/-
56) What is the margin and repayment period under PNB power ride scheme
a) 25% and 60 months

b) 20% and 84 months
c) 10% and 36 months
d) 5% and 24 months
57) What is the permissible deductions including the deduction amount of proposed loan to
arrive at Net monthly salary / income:
a) 60%
b) 40%
c) 50%
d) 25%
58) How may margin is required for education loan above Rs.4.00 lac under PNB Saraswati
for courses in India:
a) 25%
b) 20%
c) 5%
d) 10%
59) How much up front fee is charged from student borrower in PNB Saraswati for studies
in India :
a) 0.50%
b) 0.90%
c) 1.00%
d) No up front fee is charged
60) What should be minimum age for student to become eligible for education loan :
a) 10 years
b) 18 years
c) No age criteria
61) What is the moratorium period in Education loan under PNB Saraswati scheme
a) Course period + 1 year

b) Period if extendable upto 2 years if the borrower does not get job
c) None of the above
d) a & b above
62) Interest concession @ 1% if allowed if it is serviced during holiday period. When such
concession can be availed by the borrower :
a) At the time of service of interest

b) At the time of final settlement
c) at the time of start of repayment
63) How much amount is treated as priority sector in education loan sanctioned with in
India.
a) 10 lacs
b) 15 lacs
c) 20 lacs
d) No amount covered under PS
64) What is the income criteria for sanction of education loan under Education loan scheme
of the bank
a) Rs.10000/- per month

b) Rs.20000/- per month
c) Rs.15000/- per month
d) No income criteria exists
65) Under education loan scheme if fee has been paid by the borrower and require
reimbursement from loan amount, can be reimbursed within :
a) 3 months
b) 6 months
c) 9 months
d) Reimbursement of fee is not applicable
66) What is the maximum repayment period under PNB Sarasvati scheme :
a) 10 years
b) 15 years
c) 60 months
d) 120 months
67) What is the minimum and maximum loan amount under PNB Kaushal
a) Rs.25000 and Rs.2.50 lacs

b) Rs.5000 and Rs.1.50 lac
c) Rs. 0.00 and Rs.4.00 lacs
68) What is the repayment period of loan above Rs.1.00 lac under PNB Kaushal
a) 3 years

b) 5 years
c) 7 years
d) 15 years
69) What is the repayment holiday for the course of 1 year and above under PNB Kaushal
education loan scheme :
a) 6 months
b) 9 months
c) 12 months
d) 18 months
70) What is the interest rate concession allowed to women beneficiary under PNB
education loan scheme
a) 1%
b) 0.50%
c) 0.25%
d) No concession allowed
71) PNB UDaan scheme is meant to allow education loan for study abroad. What will be
maximum loan amount under this scheme :
a) 10 lacs
b) 20 lacs
c) 15 lacs
d) 4 lacs
72) What is the margin under PNB Udaan education loan scheme for loan above Rs. 4/- lacs
a) 5%
b) 10%
c) 15%
d) 25%
73) What do you mean by CGFSEL
a) Credit guarantee fund launched by CGTMSE

b) Credit guarantee fund launched by MUDRA Ltd.
c) Credit guarantee scheme for education loan
d) None of t he above
74) The fund of CGFSEL will be managed by
a) NABARD
b) CGTMSE
c) NCGTC ( National credit guarantee trustee company ltd.)
d) Farmer welfare trust of the bank
75) Education loan upto Rs.7.50 lacs without collateral and / or IIIRd party guarantee with
rate of interest BR+2 % will b covered under CGFSEL subject to payment of guarantee
fee at the rate of :
a) 1% per annum

b) 0.50% per annum
c) 1.50% per annum
d) Without payment of guarantee fee
76) Guarantee for CGFSEL will be borne by the bank and provide guarantee upto a
maximum amount of ______
a) 75% of amount in default

b) 100% of amount in default
c) 50% of amount in default
d) 80% of amount in default
77) Credit Guarantee Fund Scheme for Education Loan (CGFSEL) is applicable new loans
sanctioned on or after the date of notification by government of India i.e.
a) 01.04.2015
b) 16.09.2015
c) 30.09.2015
d) 01.04.2016
78) Presently mortgage loan against IP can be granted for :
a) Personal needs
b) Business needs
c) Both personal and business needs
d) any purpose
79) What is the minimum and maximum amount of loan allowed for personal needs against
mortgage of IP.
a) 1.00 lac and 5.00 lacs

b) 5.00 lac and 50.00 lac
c) 5.00 lac and 500 lacs
d) 10.00 lac and 100 lac
80) What is the minimum and maximum amount of loan allowed for business needs against
Mortgage of IP.
a) 1.00 lac and 5.00 lacs

b) 5.00 lac and 50.00 lac
c) 5.00 lac and 500 lacs
d) 10.00 lac and 100 lac
81) What is the maximum repayment period for term loan allowed against mortgage of IP
a) 84 months
b) 60 months
c) 120 months
d) 30 years
82) Personal loan can be granted to which category of borrower
a) Businessmen

b) Employees
c) Professionally qualified practicing doctors
d) b & c above
83) Personal loan can be availed by employees drawing salary of Rs.30000/- and above &
have completed above 3 years in present organization to the extent of 20 times of net
salary with maximum of :
a) 3.00 lacs
b) 4.00 lacs
c) 5.00 lacs
d) Need based
84) What is the minimum net monthly income for a borrower to become eligible for
personal loan in Semi urban areas :
a) 15000/-
b) 12500/-
c) 10000/-
d) 7500/-
85) Personal loan is repayable in 60 EMI thus 60 advance cheques have to be obtained.
What should be maximum amount of EMI as compared to Income:
a) 50% of net monthly income

b) 60% of net monthly income
c) 70% of net monthly income
86) What is the maximum repayment period of personal loan for defence personal
a) 60 months
b) 36 months or remaining period of stay at present posting
c) 84 months
87) What is minimum income criteria prescribed for personal loan scheme of our bank
a) 15000/-
b) 12500/-
c) 10000/-
d) 7500/-
88) Which type of loan can be availed under pension loan scheme
a) Term Loan
b) Demand Loan
c) Overdraft
d) Any of the above
89) What is the upfront fee on pension loan ?
a) 0.90% of loan amount

b) 0.50% of loan amount
c) 1.00 % of loan amount
d) No upfront fee is charged
90) What is the repayment period prescribed in a pension loan where age of the borrower
is above 75 years
a) 48 months
b) 60 months
c) 36 months
d) 24 months can be extended to 48 months
91) What is the maximum loan amount allowed under Loan against pension scheme
a) 5.00 lacs
b) 10.00 lacs
c) 2.00 lacs
d) 25.00 lacs
92) What is the maximum loan amount allowed to pensioner whose age is above 75 years
a) 12 months pension maximum 5 lacs

b) 18 months pension maximum 5 lacs
c) 24 months pension maximum 5 lacs
d) 12 months pension maximum 3 lacs
93) What is the maximum loan that can be availed against Gold/Silver/ornaments /Gold
coins for productive purpose
a) Rs. 2.00 lacs

b) Rs.5.00 lacs
c) Rs.10.00 lacs
d) Need based without ceiling
94) Which type of loan can be granted under Gold loan scheme of the bank
a) Term Loan
b) Demand loan
c) Overdraft
d) All of the above
95) What is the maximum period during which borrower can repay the loan under Gold loan
scheme
a) 24 months
b) 12 months
c) 36 months
96) What is the prescribed margin to allow gold loan
a) 10%
b) 25%

c) 30%
d) 40%
97) What is the maximum loan amount qualify under PNB Baghban scheme
a) 50 lac
b) 75 lacs
c) 80 lac
d) 100 lac
98) What is the margin in PNB Baghban scheme
a) 15% of the realizable value of property

b) 20% of realizable value of property
c) 25% of the realizable value of property
99) Under PNB Baghban scheme what is tenor of loan for senior citizen in age group of 60-
70 years
a) 15-20 years
b) 10-15 years
c) 10-20 years
100) What is not true among the following
a) Residual life of property should be at least 20 years

b) Purpose of loan should not be speculating or trading
c) It should be ensured that will executed by the borrower is the last will
d) Life certificate is not required under the scheme

ANSWERS – RETAIL LENDING
1 D 26 C 51 B 76 A
2 D 27 B 52 B 77 B
3 B 28 C 53 D 78 C
4 C 29 B 54 B 79 A
5 C 30 A 55 B 80 C
6 C 31 C 56 C 81 C
7 B 32 B 57 C 82 D
8 A 33 A 58 C 83 C
9 A 34 B 59 D 84 C
10 B 35 B 60 C 85 B
11 D 36 C 61 D 86 B
12 A 37 D 62 B 87 D
13 A 38 A 63 A 88 D
14 D 39 A 64 D 89 D
15 B 40 B 65 B 90 D
16 A 41 C 66 B 91 B
17 C 42 B 67 B 92 A
18 C 43 B 68 C 93 D
19 B 44 B 69 C 94 D
20 C 45 B 70 B 95 B
21 A 46 B 71 B 96 B
22 D 47 C 72 C 97 D
23 C 48 D 73 C 98 B
24 B 49 C 74 C 99 A
25 B 50 A 75 B 100 D

QUESTION / ANSWERS ON RETAIL DEPOSIT SCHEMES
1) As per Govt. of India rules Small account means :

a) Sum of credit transaction in a FY does not exceed 1.00 lac
b) Total withdrawal and transfer in a month does not exceed Rs.10000/-
c) At any point of time Balance does not exceed Rs.50000/-
d) All of the above
2) In Basic Saving Bank Scheme permitted number of times withdrawal from branch during
a month:
a) 2
b) 4
c) 6
d) No limit
3) What is the minimum period and minimum amount for opening RD account:
a) 12 months and one thousand

b) 6 months and One hundred
c) 24 months and Two thousands
d) No limit
4) An account under PNB Tax Saver Deposit scheme can be opened with a minimum
amount of 100 and in multiple thereof subject to a maximum of
a) 12,00,000/- per year
b) 1,00,000/- per month
c) 1,50,000/- per financial year
d) 1,00,000/- per calendar year
5) What is the lock in period for deposit under PNB Tax Saver Deposit Scheme
a) 3 years
b) 5 years
c) 9 years
d) 12 months
6) Minimum Sweep in/out is for Rs.10000/- under PNB Prudent Sweep but what is the cut
of level for the same
a) Rs.100,000 in irrespective of the location of branch

b) Rs.10000 in R/SU and Rs.20,000 in U/M branches
c) Rs.25000 in R/SU and Rs.50,000 in U/M branches
d) Rs. 5000 in R/SU and Rs.15,000 in U/M branches
7) What is the amount of deposit under PNB Dugana Deposit Scheme
a) Minimum Rs.5000/-
b) Maximum Rs.1 Crore per day
c) Amount may in multiple of Re.1
d) All a, b and c

8) Auto renewal is not available in which one of the following deposit scheme
a) Capital Gain Scheme

b) PNB Tax Saver Deposit scheme
c) Bulk Term deposit
d. All the above
9) Sweep in and out shall take place in PNB RUDENT Sweep Saving Fund Account after
the cut of level of Rs.100000 with minimum sweep in and out of Rs.10000/- to/from FDR.
The period of FDR under the scheme will be
a) 46 days to 179 days

b) 7 days to 1 year
c) 7 days to 6 months
d) 46 days to 6 months
10) Maximum amount that can be deposited in flexi RD is
a) 5 times of Core monthly installment

b) 10 times of Core monthly installment
c) 100 times of Core monthly installment
d) Nothing to do with core amount but maximum of Rs.10000/-
11) Minor who has completed age of ______can open self operated SF account
a) 16 year
b) 14 year
c) 10 year
d) 18 year
12) What is the a/c type to be mentioned in CUMM for eligibility for additional interest
allowed by a bank, in case of a senior citizen:
a) ZOTHR
b) OTHER
c) SRCTN
d) A & B ABOVE
13) Under Balika Shiksha Fixed Deposit Scheme, the initial sum to be
deposit by the Government of India is Rs. _______.
a) 2000/-
b) 3000/-
c) 5000/-
d) 6000/-
14) Maximum period and maximum amount for opening of account in Anupam deposit
scheme
a) 179 days and 99,99,999

b) 120 months and 99,99,000
c) 240 months and 99,99,999
d) 6 months and 100000

15) Prospective Senior Citizen Term Deposit can be opened by individuals (Singlly or
Jointly) with others . What is the age criteria of prospective senior citizen
a) 60 and above
b) 55 and above
c) 50 and above
d) 65 and above
16) What is the ceiling on Overdraft amount under PNB Shikshak OD Scheme.
a) Last Salary Credit or Rs. 30000, whichever is lower.

b) Last Salary Credit or Rs. 40000, whichever is lower
c) Last Salary Credit or Rs. 50000, whichever is lower
d) Last Salary credit or Rs.100000 whichever is lower
17) Flexi RD cannot be opened by
a) Individual – singly or jointly or already holding an a/c

b) Minor through guardian or by minor of 10 years and above in his/her own name
c) Firms , Clubs , association, trust , educational institute , Municipal corporation,
Panchayat, Government and Quasi Govt Bodies , Cooperative societies ,
religious or charitable institutions , HUF and Corporate etc
18) Which one of the following is not true in respect of Fixed Deposit scheme for Road
Accident Victims
a) A/c can be opened only by claimants of victims of road accident as per court
order, a copy of which is to be held on records.
b) Period may vary from 12 months to 120 months and ROI will be 1 percent above
CARD rate
c) Interest is to be paid at monthly intervals at discounted rate, maturity option is not
available Depositor to open SF account, with no cheque book facility, mandatorily
wherein interest will be credited on monthly basis.
19) What is the minimum age to provide overdraft under PNB Vidyarthi Account
a) 10
b) 18
c) 21
d) When he completes education
20) What is the penalty for delayed deposit in Recurring Deposit account
a) Rs.1.50 per 100 per month

b) Rs.2/- per 100 per month
c) Rs.3/- per 100 per month
d) Rs.5/- per 100 per month
21) The maximum amount of deposit permitted under PNB Bulk Fixed deposit scheme is
_______ and in multiples of ________.

a) 10 crores , 1
b) above 10 crore , 1
c) 10 crore , 10000
d) Above 10 crore, 10000
22) What is the maximum amount to be invested in Senior Citizen savings scheme_____
and in multiples of ______
a) 5 lacs, 1
b) 10 lac, 10000
c) 15 lac, 1000
d) No limit
23) What is the minimum amount and maximum amount to be invested in PNB growth fixed
deposit scheme
a) 5 lacs, 50 lacs
b) 50 lac, 1 crore
c) 1 crore, 10 crore
d) Any amount
24) What is the minimum period in Income plan and maturity plan under PNB growth Fixed
deposit scheme
a) 6 months and 46 days

b) 12 months and 6 months
c) 6 months and 7 days
d) 7 days and 46 days
25) Under PNB Growth fixed deposit scheme part withdrawal is permitted. What is the
minimum amount of part withdrawal under this scheme
a) Rs. 1000
b) Rs. 10000
c) Rs. 100000
d) Rs. 50000
26) What is the minimum amount of part withdrawal under PNB Bulk deposit scheme
a) Rs. 1000
b) Rs. 100000
c) Part withdrawal not allowed
d) Rs. 50000
27) What is the sweep in and sweep out amount in PNB Smart Banking current account of
Gold Variant
a) Rs.1000
b) Rs.10000
c) Rs.50000
d) Rs.100000

28) Under PNB Smart banking current account scheme what is the minimum and maximum
period of sweep term deposit
a) 7 days and 179 days

b) 46 days and 179 days
c) 180 days and 365 days
d) 15 days and 91 days
29) Under PNB Platinum variant of Smart Banking Current Account how many cheque
leaves are allowed in each quarter without any charge
a) 100
b) 200
c) 300
d) 600
30) What is the QAB Charges for non maintenance of minimum balance in all the four
variants of PNB Smart Banking Current Account i.e. SILVER, GOLD, DIAMOND,
PLATINUM
a) 300, 600, 900, 1200

b) 150, 600,1500, 3000
c) 50, 300, 600, 1800
d) 200, 400, 600, 800
31) What is Minimum QAB in Rural/Semi Urban area under PNB Prudent sweep account
a) Rs. 1000
b) Rs. 5000
c) Rs.10000
d) Rs. 500
32) What is the cut off level amount for sweep in and sweep out balance in Rural / Semi
urban and Urban/ Metro areas :
a) Rs.100000
b) Rs.1000 and Rs. 10000
c) Rs.25000 and Rs.50000
33) For consolidated picture of Flexi FD and operative SB/CA accounts what is menu option
in CBS
a) PSP
d) FLEXIPSP
c) PBP
34) While opening account under SBVID scheme which date is to be mentioned in Free Text
5 field of ‘V’ detail
a) Date of birth of the student

b) Date of Majority of the student

c) Date of cessation as student
d) No date is required to filled
35) What is the maximum amount of overdraft allowed under PNB Vidyarthi deposit scheme:
a) 5000
b) 10000
c) 2000
d) 50000
36) To avail the benefit under Salary accounts for corporate employees what is the minimum
account criteria:
a) 75% of the strength of the permanent employees minimum 10

b) 50% of the strength of the employees
c) 75% of the employees strength whether permanent or not.
37) What is the initial deposit and QAB for salary account scheme for corporate employees
a) 500 and 5000

b) 1000 and 10000
c) NO Initial deposit and NO QAB
d) 5000 and 5000
38) What is the maximum overdraft allowed under Salary account for corporate employee
scheme:
a) Last salary credited in the account or Rs.50000

b) Only last salary credited in the account
c) NO overdraft allowed
39) Under PNB Suvidha Pull Sweep Facility, if the number of accounts to be pooled together
is 4, what should be the minimum QAB requirement in any of the SB/CA account is `
____
a) 1 lac
b) 2 lac
c) 4 lac
d) 4 lac in any 2 SB/ CA accounts
40) What is the minimum amount and minimum period under PNB Floating Rate Fixed
Deposit Scheme:
a) 500 and 6 months

b) 10000 and 46 days
c) 1000 and 180 days
d) 1000 and 7 days
41) What is the minimum amount of FD required for allowing demand loan /overdraft
against the security of PNB Floating rate fixed deposit receipt
a) 5000

b) 2000
c) 10000
d) No minimum amount prescribed
42) What is the lock-in period of term deposit under PNB TAX Saver deposit scheme
a) 7 days
b) 46 days
c) 6 months
d) 5 years
43) Which of the following is correct in respect of Fixed deposit scheme for road accident
victims cancelled prematurely :
a) 1% less than applicable rate period for which deposit has run
b) 2% less than applicable ROI
c) No penalty is to be charged
d) No premature cancellation / part withdrawal permitted without the permission of
the court.
44) What is the penalty of missed installments in Flexi RD Scheme
a) Rs.2 per Rs.100 per month

b) Rs.1 per Rs.100 per month
c) No penalty applicable
45) To allow additional interest on account of Senior Citizen deposit what are the pre-
requisites at the account level
a) Date of birth should be correct

b) Customer type code should be ‘SRCTN’
c) Use INTTM menu to allow additional interest
d) Both a and b
46) Which of the following is correct in respect of RD accounts
a) RD a/c holder cannot amend number of installments

b) RD a/c holder cannot amend amount of monthly installment
c) IF RD is closed within a period of one year premature charges of Rs.100/-
will be levied except in case of death
d) All of the above
47) What is the minimum and maximum amount under PNB Dugna Scheme
a) Rs.100 and less than 1 crore

b) Rs.500 and less than 10 crore
c) Rs.5000 and 1 crore
d) Rs.10000 and 10 crores
48) What is the monthly installment of PNB Lakhpati scheme for 72

Months under Scheme ‘A’ variant

a) 1500
b) 1340
c) 1070
49) What is the cut off level and sweep out/ sweep in amount in Shikshak deposit scheme:
a) Rs.15000 and Rs.1000

b) Rs.5000 and Rs. 10000
c) Rs.15000 and Rs. 10000
d) Rs.40000 and Rs. 10000
50) What is the penal charges for closure of account under PNB SHIKSHAK scheme within 1
year of the opening of account:
a) No charges
b) Rs.500/-
c) Rs.150/-
d) Rs.1000/-
51) What is minimum amount and multiples under Varshik Aya yozna deposit scheme:
a) Rs.10000/- and Rs.1000/-

b) Rs.100 and Rs.1/-
c) Rs.10000/- and Rs.1/-
52) What is the minimum period for deposit under Varshik Aya YOzna deposit scheme
a) 7 days
b) 6 months
c) 12 months
d) 24 months
53) What is the maximum amount that can be deposited under Varshik Aya yozna scheme
a) 1 crore
b) 10 crore
c) 9999999/-
d) 9999000/-
54) In case of overdue term deposits interest rate from the date of maturity till payment /
renewal will be paid at the rate of :
a) 4% if it is after 22.08.2008.
b) As applicable at the time of renewal/payment
c) No interest on overdue deposit is to be paid
55) At the time of renewal, Interest on overdue term deposit is to be paid from the date of :
a) Renewal of the term deposit

b) Retrospective date
c) Renewal date and retrospective date whichever is lower

56) What is the minimum ,multiples and maximum amount for opening Ordinary term deposit
account:
a) Rs.100, Rs.1/- , Rs.9999999/-

b) Rs.500, Rs.1/- , Rs.1 crore
c) Rs.10000, Rs.1000, Rs.10 crores
d) Any of the above
57) What is the minimum and maximum period in Ordinary term deposit scheme

b) 7 days and 179 days
c) 6 months and 120 months
d) 12 months and 120 months
58) What is the minimum and maximum period in Special Term Deposit scheme

c) 1 year and 10 year
d) 7 days to 10 years
59) What is the charges to be recovered from customer when QAB maintained is between
900 to 999 in Urban centre
a) Rs.10/-
b) Rs.15/-
c) Rs.75/-
d) Rs.150/-
60) What is the minimum, multiples and maximum amount for opening Ordinary term deposit
account:
a) Rs.0, Rs.1/- , Rs.9999999/-

b) Rs.500, Rs.1/- , Rs.1 crore
c) Rs.10000, Rs.1000, Rs.10 crores
d) Rs.100, Rs.1/- , Rs.9999999/-
61) Anupam Deposit scheme – What is the minimum, multiples and maximum amount for
opening of account under the scheme:
a) Rs.10000/-, Rs.1000/-, Rs.9999000/-

b) Rs.100/-, Rs.1/- Rs.9999999/-
c) Rs.500/-, Rs.100/-, Rs.9999900/-
d) Any of the above
62) What is the Margin for the overdraft allowed under anupam deposit maturity period
remaining upto 3 years:
a) 25%
b) 10%
c) No margin

d) 7.5%
63) Which one of the following is true
a) No third party advance is allowed under Anupam Scheme

b) No OD to proprietorship firm against FDR in the name of proprietor and No OD to
proprietor against FDR in the name of proprietorship firm
c) The Title of term deposit and Overdraft should be the same
d) All the above
64) What is the minimum amount, minimum period and minimum

part-withdrawal amount in PNB Sugam Deposit Scheme:
a) 10000, 46 days, 1000

b) 100, 7 days, 100
c) 1000, 6 months, 1000
65) What is the minimum and maximum limit while opening account under NRE Rupee
Sugam term deposit scheme
a) 10000 and 9999999

b) 10000 and 9999000
c) 100 and 9999999
d) 10000 and no limit
66) Which of the following is not true with regard to PNB SUGAM deposit scheme
a) Depositor can withdraw any amount before maturity in multiples of Rs.1000/-

b) No penalty is to be charged for premature withdrawal
c) Overdue deposit is to be renewed on the date of presentation
67) In respect of NRO Sugam deposit scheme a/c will be opened jointly with :
a) Resident Indians only

b) Resident and/or with non resident
c) Joint account not permitted only nomination can be done
68) What is the minimum amount and minimum period for opening account under
prospective senior citizen deposit scheme
a) Rs.100 and 1 year

b) Rs.1000 and 6 months
c) Rs.10000 and 12 months
69) Under PNB Rakshak scheme cut off level for sweep in and out shall be_________ and
minimum sweep out/sweep in shall be______
a) Rs.15000 and Rs.10000

b) Rs.10000 and Rs.1000

c) Rs.40000 and Rs.10000
70) Under PNB Rakshak deposit scheme what is the maximum amount of overdraft allowed
:
a) Last one months salary

b) Sum of last two months net salary
c) Sum of last two months gross salary
71) Which of the following is not true with regard to PNB Rakshak scheme
a) Only one facility either auto sweep or overdraft can be allowed.

b) Initial deposit and QAB are NIL
c) Occupation code in CBS should be “POLIC”, “COAST” OR “ITBPP”
d) All are correct
72) Under PNB Special RD Scheme what is the minimum instalment amount and its
multiples and minimum period
a) Rs.100/-, Rs.100/-, 6 months

b) Rs.10/- Rs.1/- , 6 months
c) Rs.1000/-, Rs.100/-, 12 months
73) What is the penalty for default of instalment under PNB Special RD Scheme
a) Rs.2/- per Rs.100/- per month

b) Rs.1/- per Rs.100/- per month
c) No penalty will be charged
74) Which of the following is correct with regard to frozen accounts:
a) In Case of Saving Bank accounts at SF rate at regular intervals

b) At the term deposit rate as agreed upon
c) On maturity TDR will be renewed as per the original term
d) All are correct
75) With regard to term deposit of deceased customer which of the following is correct:
a) Death before date of maturity and amount claim after maturity interest at the
contracted rate will be paid till maturity date.
b) As per (a) above after maturity at SB rate
c) In case death after maturity date where depositor fails to renew the deposit Bank
shall pay interest as in case of overdue term deposits.
d) All are correct.
76) If depositor close the TDR before maturity for the purpose of investment in other TD
scheme of the bank, what is the rate of penalty:
a) 1% penal interest will be charged
b) No penalty will be levied if reinvested for longer period than earlier deposit

c) 2% penal interest will be charged
77) What is incorrect in PNB Mitra Account
a) Balance in the account should not exceed Rs.50,000

b) Total credit in the account should not exceed Rs.1.00 in a year
c) Maximum withdrawal / transfer in a month Rs.10000/-
78) Pulling features under PNB suvidha scheme is to be set through menu
a) FFDPSP (GU User)

B) SWEEPS (DBA User)
c) PFOAAC (GU User)
79) Multi Benefit deposit scheme – What is the minimum, multiples and maximum amount
for opening of account under the scheme:
a) Rs.100/-, Rs.1/-, Rs.9999999/-

b) Rs.100/-, Rs.1/- Rs.9999999/-
c) Rs.500/-, Rs.100/-, Rs.9999900/-
d) Any of the above
80) PNB Power Saver scheme is meant to cover women customers, what is the maximum
free accidental insurance coverage for debit card issued under the scheme
a) 50000/-
b) 100000/-
c) 200000/-
d) 500000/-
81) Accidental death coverage under PNB Rakshak deposit scheme is now linked with :
a) Credit card issued

b) Specially designed PNB Rakshak Debit card
c) Credit of monthly salary for previous 3 months
d) Any of the above
82) Under PNB Rakshak deposit scheme Brigadier & above is having free accidental
insurance cover with air travel or without air travel upto a maximum amount of :
a) Rs.5.00 lacs and Rs.3.00 lacs

b) Rs.10.00 lacs and Rs.5.00 lacs
c) Rs.20.00 lacs and Rs. 10.00 lacs
d) Amount covered as per debit card issued in the a/c
83) Under PNB Rakshak deposit scheme Officers below the rank of Brigadier is having
free accidental insurance cover with air travel or without air travel upto a
maximum amount of :

84) Under PNB Rakshak deposit scheme persons below the rank of Officers is having free
accidental insurance cover with air travel or without air travel upto a
maximum amount of :

85) Deposits held, singly, in the personal name of spouse of a deceased member of a
staff or a deceased retired member of the Bank’s staff concessional rate of interest
allowed. Which of the following is correct:
a) At Staff rate
b) At Sr. citizen rate if age is 60 years and above
c) Staff + Sr. citizen benefit both (if customer is sr. citizen)
d) At Card rate
86) On submission of 15G form by the customer what is the ceiling limit and TDS
exemption code to be entered in CBS
a) 999999999.99 & TDSGE

b) 0.00 to 2.50 lacs & TD15G
c) 0.00 to 5.00 lacs & TD15G
87) What should be the TDS exemption rate code in CBS where 4th Character of the
PAN Card number is ‘P’, ‘H’, ‘A’, ‘B’, ‘T’
a) TD15G
b) TDSPN
c) Only TDS exemption date is to be entered in CUMM
d) TDSGE
88) On submission of Form 15G/15H by the customer mentioning TDS exemption

date is replaced by :
a) PANCARD
b) TDS Rate code
c) Form 60
d) Any of the above
89) TDS exemption limit from 0.00 to 3.00 lakhs is allowed to Sr. citizen customer
having 4th Character in PAN Number as ‘P’ and age group between :
a) above 18 years to 60 years

b) above 60 years to 80 years
c) Above 80 years
d) No exemption is allowed

90) TDS exemption limit from 0.00 to 5.00 lakhs is allowed to Sr. citizen customer
having 4th Character in PAN Number as ‘P’ and age group between :
a) above 18 years to 60 years

b) above 60 years to 80 years
c) Above 80 years
d) No exemption is allowed
91) All the TDS exemption rate code will be reset to TDSGE on
a) 1st June of the relevant financial year

b) 1st April of the relevant financial year
c) 1st January of the relevant financial year
d) Once entered in CBS will continue till customer withdraws
92) In specified categories where TDS is not to be deducted TDS remark codes are to
be mentioned in CUMM along with TDS rate code :
a) TD15H
b) TDSZR
c) TD80G
d) TD60G
93) PNB Sanchay which is combined features of RD/Flexi RD and Mini Deposit
scheme is available with
a) BC Locations
b) Directly at Branch location
c) Directly at Head Office location
94) What is the minimum deposit amount under PNB Power Saver deposit scheme
a) Rs. 1000/-
b) Rs.500/-
c) Rs. 0/-
95) Which of the following is correct with regard to Sukanya Samridhi Account :
a) Opened by a girl child till she attain the age of 10 year

b) Minimum amount per year is Rs.100/- & Maximum Rs.1.50 lacs
c) One withdrawal at the age of 18 years and a/c will mature
on completion of 21 years from the account open date
d) All are correct
96) What will be rate of interest allowed while opening Fixed deposit account for Road
Accident victims
a) At applicable card rate

b) 1% above the card rate
c) No interest will be paid

97) What is the minimum, maximum and multiplicity of period in months in case of
RD accounts.
a) 3, 120, 3
b) 6, 120, 1
c) 12,180, 6
d) Either a or c
98) What is minimum entry age of the customer for opening Family protection account
i.e. SF with insurance cover
a) 10
b) 25
c) 30
d) 50
99) What is the minimum and multiplication amount of special RD account
a) Rs.100 and Rs.10

b) Rs.10 and Rs. 1
c) RS.1000 and Rs.100
100) In our bank Term deposits are auto renewed on maturity. In which of the following
schemes auto renewal is not done:
a) PNB Tax saver deposit scheme

b) Bulk term deposit scheme
c) Interbank deposit for a fixed period
d) All of the above

ANSWERS – RETAIL DEPOSIT
1 D 26 C 51 A 76 B
2 B 27 C 52 D 77 D
3 B 28 D 53 D 78 B
4 C 29 D 54 A 79 A
5 B 30 B 55 A 80 D
6 A 31 B 56 A 81 C
7 D 32 A 57 B 82 C
8 D 33 D 58 C 83 B
9 B 34 C 59 B 84 A
10 B 35 B 60 D 85 C
11 C 36 A 61 A 86 B
12 C 37 C 62 D 87 A
13 B 38 A 63 D 88 B
14 B 39 C 64 A 89 B
15 B 40 D 65 D 90 C
16 C 41 C 66 D 91 B
17 D 42 D 67 B 92 B
18 D 43 D 68 A 93 A
19 B 44 C 69 B 94 B
20 A 45 D 70 B 95 D
21 B 46 D 71 D 96 B
22 C 47 C 72 B 97 B
23 C 48 C 73 C 98 B
24 C 49 A 74 D 99 B
25 C 50 C 75 D 100 D

MSME QUESTIONS _ANSWERS
1. Government of India enacted MSME Act in the year 2006, when the provisions of this
act came into force :
a) 01.04.2006
b) 30.04.2006
c) 02.10.2006
d) 01.04.2007
2. What is the time limit for disposal of MSME loans upto 2 lakhs.
a) 2 Weeks
b) 3 Weeks
c) 4 weeks
d) 15 days
3. What is the time limit for disposal of MSME loans above 2 lakhs & upto 50 lakhs.
a) 2 Weeks
b) 3 Weeks
c) 4 weeks
d) 15 days
4. What is the time limit for disposal of MSME loans above 50 lakhs & upto 100 lakhs.
a) 2-3 Weeks
b) 3-4 Weeks
c) 4-5 weeks
d) 5-6 weeks
5. What is the time limit for disposal of MSME loans above 100 lakhs upto 100 crores.
a) 2-3 Weeks
b) 3-4 Weeks
c) 4-5 weeks
d) 6-7 weeks
6. What is the time limit for disposal of MSME loan proposal above 100 crores
a) 2-3 Weeks
b) 3-4 Weeks
c) 4-5 weeks
d) 8-9 weeks
7. A manufacturing unit with investment in plant and machinery upto ______ lakhs shall be
called a mico enterprise
a) 10
b) 15
c) 20
d) 25

8. A service unit with investment in equipments upto______ lakhs shall be called a mico
enterprise
a) 10
b) 15
c) 20
d) 25
9. A service unit with investment in equipments between _____ shall be called a SMALL
enterprise
a) 10 lakh – 1 Crore
b) 15 lakh – 2 Crore
c) 20 lakh – 2 Crore
d) 10 Lakhs – 2 Crore
10. A manufacturing unit with investment in plant and machinery between _____ shall be
called a SMALL enterprise
a) 10 lakh – 1 Crore
b) 25 lakhs – 5 Crore
c) 20 lakh – 2 Crore
d) 10 Lakhs – 2 Crore
11. Upto what amount loan can be disbursed Under Credit Linked Capital Subsidy Scheme
for purchase plant and Machinery :
a) Rs. 100 lakh

b) Rs. 75 Lakh
c) Rs. 50 laks
d) Rs. 25 Lakh
12. To classify MSME unit as medium enterprise in manufacturing sector investment in

plant and machinery should be :
a) Upto Rs. 25 lacs

b) Above 25 lacs and upto Rs.5 crores
c) Above 5 crores and upto Rs. 10 crores
d) No ceiling
13. To classify MSME unit as medium enterprise in service sector invest in equipment
should be
a) Upto Rs. 10 lacs

b) Above 10 lacs and upto Rs.2 crores
c) Above 2 crores and upto Rs. 5 crores
d) No ceiling
14. To classify Micro/Small/Medium enterprise under MSME sector where two or more
undertakings has a same ownership investment in Plant & Machinary / equipment
should be :

a) clubbed in all cases
b) only clubbed in case of service sector
c) only clubbed in case of manufacturing sector
d) Not to be clubbed for such status
15. All advances granted on or after 8th April 2015 to non farm enterprises in manufacturing,
trading, and services whose credit needs are upto Rs.10 lacs are to be classified:
a) Start up loans
b) Make in India project loan
c) Mudra loans
16. Mudra loan is to be classified upto 50000/-, above 50000/- & upto 5.00 lacs, above 5.00
lacs and up 10.00 lacs. What will be the name wise classification for these categories:
a) Aakash, Prithvi and Nation

b) Shishu, Kishore, Tarun
c) Tarun, Prithvi and Aakash
d) Kishore, Raghav, Ravi
17. What is the scheme code for sanction of Overdraft limit under Shishu category loan upto
Rs.50000/-
a) ODGEN
b) ODSCN
c) ODMUD
d) ODDET
18. Which of the following is correct with regard to PNB Vanita Scheme
a) Loan allowed to encourage women for income generation no earlier default

b) Loan allowed for manufacturing/Trading/service/small business
c) Preference will be given to SC/ST/BPL card holders
d) All are correct
19. What is the maximum loan and margin %age under PNB Vanita Scheme
a) Rs.1.00 lac and 10%

b) Rs.0.50 lacs and 5%
c) Rs.0.25 lac and NIL
d) Rs.5.00 lacs and 20%
20. What is the repayment and moratorium period under PNB Vanita Scheme
a) 5-6 years and 12 months

b) 3-5 years and 3-6 months
c) 6 years and 6 months
21. For financing of stock /Receivables what is the maximum working capital limit allowed
Under Kushal Vyapari :

a) 5.00 lacs
b) Need based
c) 1.00 crore
22. To set up limit under PNB Kushal Vyapari scheme stock/receivables should not be more
than_____ old
a) 6 months
b) 4 months
c) 3 months
d) 12 months
23. Working capital Term Loan facility is allowed under PNB Kushal Vyapari scheme upto a
maximum of Rs._______
a) 25 lacs
b) 5 lacs
c) 10 lacs
d) 15 lacs
24. To allow finance under PNB Kushal Vyapari scheme proposal may be assessed as per
simplified turnover method (Nayak committee recommendations) upto a loan limit of _
a) 2.00 crores
b) 5.00 crores
c) 0.50 crores
25. Margin for financing Book debts is 40% under PNB Kushal Vyapari scheme What is the
margin %age for financing stocks
a) 40%
b) 25%
c) 30-40% keeping in view the nature of stock
26. To finance stock / book debts collateral security / liquid security is required having
realizable value of ______.
a) 75% of loan amount

b) 90% of loan amount
c) equal to & above of the loan amount
d) 125 % of loan amount
27. Under pnb Kushal Vyapari yozna concession in rate of interest of 1.50% is allowed
where realization value of security is_______ for loan above Rs. 10 lacs.
a) 150% to 200%
b) 100% to 150%
c) above 200%
d) 75% to 100%

28. What will be the concession in rate of interest under PNB Kushal Vyapari yozna where
realilsation value of the collateral is between 125% and 150% of loan amount
a) 1.25%
b) 1%
c) 0.75%
d) 0.50%
29. What is the maximum Term Loan limit allowed to traders for purchase/constructions of
showroom
a) 5.00 crores
b) 1.00 crore
c) Need based
30. What is the maximum repayment period and moratorium period for Term Loan limit
allowed to traders for purchase/constructions of showroom
a) 3-10 years and 6-12 months

b) 0-10 years and 0-12 months
c) 20 years and 36 months
d) 25 years and 18 months
31. Financing of stocks and book debts under PNB Super Trade what is the maximum
amount that can be financed:
a) 2.00 crores
b) 1.00 crores
c) 5.00 crores
32. What is the margin percentage for financing against stocks under PNB Super Trade
scheme :
a) 40%
b) 30%
c) 25%
d) 10%
33. To security the loan under PNB Super trade scheme what should be the minimum value
of collateral security required:
a) RV 100% of loan amount

b) RV 150% of loan amount
c) RV 75% of loan amount
d) RV 200% of loan amount
34. What is the periodicity of the visit to the site of mortgage property accepted as collateral
security where value of property is upto 20 lacs or credit facility are upto 1 crore:

a) Once in a year
b) Once in two year
c) Once in three years
d) Once in six months
35. What is the periodicity of the visit to the site of mortgage property accepted as collateral
security where value of property is above 20 lacs or credit facility are above 1 crore:
a) At least on yearly basis

b) Once in two year
c) Once in three years
d) Once in six months
36. Finance under PNB Super trade scheme is allowed only for ______ and should be
reviewed/ renewed _______
a) Term Loan and 3 years

b) CC(H) and one year
c) OBD and 3 years
37. What is the minimum and maximum amount can be financed as Term Loan under PNB
Professional scheme
a) 1.00 lac and need based

b) 0.50 lac and 2 crores
c) 5.00 lacs and 5 crores
38. What is the minimum and maximum amount can be financed as Overdraft under PNB
Professional scheme

b) 1.00 lac and 25.00 lacs
39. What is the minimum and maximum amount can be financed as Cash credit under PNB
Professional scheme

b) 0.50 lac and 2 crores
40. What is the margin %age upto a loan of Rs.2.00 lacs under PNB Professional scheme:
a) 10%
b) 20%
c) 25%
d) No margin

41. For loans over 2 lacs and upto 50 lacs under PNB Professional are to be rated under
which of the following model:
a) Pnb Score
b) PNB Score SME
c) PNB Trac
d) PNB PMS
42. What is the prescribed debt equity ratio for financing under PNB Professional scheme
a) 1:1
b) 2:1
c) 3:1
d) DER not applicable in this scheme
43. What is the maximum repayment period and maximum moratorium period allowed under
PNB Professional scheme
a) 60 months and 18 months

44. Loan upto Rs.10 lacs under PNB Professional are covered under ______ and no
collateral security is required.
a) NABARD
b) CGTMSE
c) SIDBI
45. Rating as per PNB Trac is required for loans above _______ under PNB Professional
credit scheme
a) 20 lacs
b) 40 lacs
c) 50 lacs
d) 1.00 crore
46. What is the maximum amount of loan as overdraft under PNB SANJEEVANI SCHEME?
a) No limit
b) 5 Crore
c) 1 Crore
d) 10 Crore
47. What is the minimum and maximum amount of Term loan that can be given under PNB
Sanjeevani scheme
a) 1 lac and need based

b) 5 lacs and 25 lacs
c) 25 lakhs and 1 crore

48. What is the prescribed margin for financing under PNB Sanjeevani Scheme
a) 10%
b) 20%
c) 25%
d) 40%
49. What is the maximum repayment period and maximum moratorium period allowed under
PNB Sanjeevni Scheme

50. What is the repayment period of overdraft limit allowed under PNB Sanjeevni scheme
a) 60 months on monthly reducing DP

b) 120 months on monthly reducing DP
c) 84 months on monthly reducing DP
d) Overdraft renewed annually
51. To purchase a new or old vehicle what is the Nature and maximum loan allowed to
Owner-Driver of Taxi / cars, Three wheeler, Tempos etc
a) CC and no limit
b) Term Loan and need based
c) Either TL or CC and needbased
d) None of the above.
52. To finance a new vehicle under Owner-Driver of Taxi / cars, Three wheeler, Tempos
etc. scheme, what is margin required for loan above Rs.25000/-:
a) 25%
b) 20%
c) 10%
d) NIL
53. To finance a old vehicle under Owner-Driver of Taxi / cars, Three wheeler, Tempos
etc. scheme, what is margin required for loan above Rs.25000/-:
a) 25%
b) 20%
c) 10%
d) NIL
54. To arrive at the value of old vehicle for financing under Owner-Driver of Taxi / cars,
Three wheeler, Tempos etc. scheme depreciation will be charged at the rate of ____.
a) 10% p.a. on the prevalent cost of new vehicle or market value which is lower

b) 20% p.a. on the prevalent cost of new vehicle or market value which is
lower
c) 15% p.a. on the prevalent cost of new vehicle or market value which is lower
d) No depreciation will be charged
55. What is the repayment period for financing new taxi under Owner-Driver of Taxi / cars,
Three wheeler, Tempos etc. scheme
a) 3 years
b) 4 years
c) 5 years
d) 6 years
56. What is the repayment period for financing newThree wheeler, auto rickshaw, station
wagons or tempos under Owner-Driver of Taxi / cars, Three wheeler, Tempos etc.
scheme
a) 3 years
b) 4 years
c) 5 years
d) 6 years
57. What is the repayment period for financing old vehicle of 1 or 2 or 3 years under Owner-
Driver of Taxi / cars, Three wheeler, Tempos etc. scheme
a) 36 months or 30 months or 24 months

b) 60 months or 48 months or 36 months
c) 48 months or 36 months or 30 months
d) 72 months or 60 months or 48 months
58. Under which rating scheme the borrower should be rated for financing new Taxi, Three
wheeler, auto rickshaw, station wagons or tempos under Owner-Driver of Taxi/cars,
a) PNB Score
b) PNB Score SME
c) PNB Trac
d) Exempted from rating
59. Sanction of IInd term loan for purchase of tyres, repair of body/engine/chasis under
Owner-Driver of Taxi/cars, Three wheeler, Tempos etc. scheme what is the
maximum amount of loan can be sanctioned:
a) Need based Maximum 25% of original TL

b) No limit
c) Need based
d) 2.00 lacs
60. What will be repayment period for IInd term loan under Owner-Driver of Taxi/cars,
a) 60 months
b) At par with the original TL
c) 36 months

d) 24 months
61. Which of the following is correct with regard to financing a vehicle under Scheme for
Advances to small road transport operator :
a) Borrower to hold DL or engage driver with valid DL

b) Old vehicle should be road worthy and not more than 3 years old
c) Prevalent price of vehicle is Rs.5.00 lac & above and 20% depreciation
p.a. is charged to arrive at the value
d) All are correct.
62) To finance a new trucks, buses, taxi card, three wheelers what will be the margin
requirement :
a) 10%
b) 20%
c) 25%
63) To finance a old trucks, buses, taxi card, three wheelers what will be the margin
requirement :
a) 10%
b) 20%
c) 25%
64) What is the repayment period for new buses, trucks and three wheeler, auto rickshaw
Tempos

65) What is the repayment period for financing old vehicle of 1 or 2 or 3 years under Small
road transport operator scheme
a) 48 months or 40 months or 30 months

b) 48 months or 60 months or 36 months
c) 60 months or 40 months or 30 months
d) 72 months or 60 months or 48 months
66) For financing new vehicle under small road transport operator scheme score under PNB
Score SME should be between :
a) 40 to 50
b) 60 to 80
c) 46 to 50
d) Score generation is exempted

67) To meet the day to day expenses of small road transport operator overdraft limit upto a
maxmum of Rs._______ per vehicle subject to maximum Rs.______ allowed where
cost of vehicle is Rs.5 lakhs and above.
a) Rs.25000/- and Rs.2.50 lacs

b) Rs.50000/- and Rs.5.00 lacs
c) Rs.1.00 lac and Rs.10 lacs
d) Rs.50000/- and Rs.10 lacs
68) Which of the following is correct with regard to PNB LUCC (Laghu Udhyami Credit Card
scheme :
a) Existing customer for the last 3 years availing limit below 20 lacs is eligible
b) Maximum limit can be allowed upto Rs. 20.00 lacs
c) For trading concern margin between 30 to 40 % would be taken
d) All are correct
69) Under PNB LUCC scheme What is the margin requirement for loan limit upto Rs.2.00
lacs other than trading cases :
a) 15%
b) 20%
c) NIL
70) What is the validity period of the credit limit sanctioned under PNBLUCC
a) 12 months
b) 24 months
c) 36 months
d) 60 months
71) For monitoring purpose in Cash credit accounts stock statements are required to be
submitted by the customer on monthly / quarterly basis. Under LUCC What will be the
periodicity for submission of stock statement.
a) Monthly
b) No stock statement monitoring through halfyearly inspection if loan < 1.00 lac
c) No stock statement monitoring through quarterly inspection if loan > 1.00 lac
d) Both b & C
72) PNB SME Sahyog scheme is applicable to existing Micro Small and Medium enterprises
borrowers whose accounts has been classified as standard assets as on 31 March for
the last ______ consecutive years
a) three
b) five
c) One
d) Two
73) Borrowers are free to utilize the PNB SME SAHYOG Scheme up to ____ times in a year:
a) Three

b) Five
c) One
d) Tweleve
74) What is the maximum limit allowed under PNB Sahyog scheme
a) 20% of existing limit maximum 25 lacs

b) 10% of existing limit maximum 10 lacs
c) 30% of existing limit maximum 20 lacs
75) To meet payment of statutory dues exclusively like income tax, sales tax, excise duty
and other expenses like electricity charges etc. MSMEs of standard category
banking with for the last 1 year are allowed special limit of 5% of loan maximum 2
lacs. This special facility is called:
a) PNB Cash Credit limit

b) PNB Green facility
c) PNB Sahyog limit
d) PNB Nirmata Scheme
76) What is the maximum loan allowed under PNB General Credit Card (PNBGCC) scheme:
a) 2.00 lacs
b) 5.00 lacs
c) 10.00 lacs
d) No limit
77) Which of the following with regard to PNBGCC is wrong?
a) PNB GCC is valid for 5 years

b) GCC Limit shall be repayable in 12 months
c) Scheme code in CBS is CCGCC
d) Loan is not collaterally secured but covered under CGTMSE
78) For financing to Persons with disabilities which of the following agency provide 100%
refinance to the loan account
a) SIDBI
b) NABARD
c) CGTMSE
d) NHFDC
79) For setting up new self employment service unit what is the maximum loan under
financing scheme to persons with disabilities:
a) Need based maximum 10 lacs

b) Need based maximum 5 lacs
c) Need based maximum 2 lacs
80) For purchase of vehicle including auto rickshaw for commercial hiring Purpose what is
the maximum loan under financing scheme to persons with disabilities:

a) Need based maximum 10 lacs
b) Need based maximum 5 lacs
c) Need based maximum 2 lacs
81) Under PNBWCC (Weaver credit scheme) What is the maximum loan allowed to
borrower and margin above Rs.25000/- ?
a) 5.00 lacs and 25%

b) 2.00 lacs and 20%
c) 10.00 lacs and 30%
d) 4.00 lacs and 15%
82) Under PNBACC (Artisan credit card) What is the maximum loan allowed to
borrower and margin above Rs.25000/- ?
a) 5.00 lacs and 25%

b) 2.00 lacs and NIL
c) 10.00 lacs and 30%
d) 4.00 lacs and 15%
83) Scheme for financing against pledge of warehouse receipts issued by approved
Collateral Managers What is the minimum and maximum loan amount to individual
farmers including SHG/JLG
a) Rs.50000/- and Rs. 5.00 lacs

b) Rs.50000/- and Rs. 50.00 lacs
c) Rs.25000/- and Rs. 10.00 lacs
d) Rs.0.00/- and Rs. 50.00 lacs
84) Scheme for financing against pledge of warehouse receipts issued by approved
Collateral Managers What is the minimum and maximum loan amount to sold proprietor
ship concerns
a) Rs.50000/- and Rs. 5.00 lacs

b) Rs.50000/- and Rs. 25.00 crores
c) Rs.25000/- and Rs. 10.00 lacs
d) Rs.0.00/- and Rs. 50.00 lacs
85) What is the income ceiling and age required for financial assistance under PMEGP
a) Rs.18000/- and 10 years

b) Rs. NIL and above 18 years
c) Rs.10000/- and 21 years
86) Repayment period in case of finance allowed under PMEGP should be :
a) 5 years to 10 years
b) 3 years to 7 years
c) 1 year to 5 years
d) 3 years to 10 years

87) To provide financial assistance to Individual BCs for purchase of Laptops/PC, Printers,
UPS, Invertor which of the following is correct:
a) Maximum Term Loan component will be Rs.50000/-

b) Repayment of the loan will be in maximum 36 months
c) Account will be covered under CGTMSE
d) All of the above
88) To boost credit under Make in India project what is the new scheme launched by our
bank
a) PNB Kushal vyapari

b) PNBGCC
c) PNBACC
d) PNB NIRMATA
89) Under PNB NIrmata scheme what will be the maximum loan limit (Cash credit and Term
Loan ) allowed to borrower :
a) 50 lacs
b) 100 lacs
c) Need based without ceiling
d) 500 lacs
90) What is the repayment period of term loan under PNB Nirmata Scheme
a) 6 to 8 years
b) 5 to 7 years
c) 3 to 5 years
d) 10 to 20 years
91) What is the repayment period for financing Old machinery, New gen set, Old gen set
under PNB Nirmata scheme
a) 36,42,30 months
b) 60,48,36 months
c) 48,66,24 months
d) 40,42,60 months
92) Under PNB Seva scheme what will be the maximum loan limit (Cash credit and Term
Loan ) allowed to borrower :
a) 50 lacs
b) 100 lacs
c) Need based without ceiling
d) 500 lacs
93) What is the repayment period of term loan under PNB Seva Scheme
a) 6 to 8 years
b) 5 to 7 years
c) 3 to 5 years

d) 10 to 20 years
94) What is the repayment period for financing Old machinery, New gen set, Old gen set
under PNB Seva scheme
a) 36,42,30 months
b) 60,48,36 months
c) 48,66,24 months
d) 40,42,60 months
95) Under PNB SME Score where new loan under Government sponsored scheme is to
sanctioned and score comes to 39 the application will be :
a) Sanctioned by next higher authority

b) Sanctioned by Incumbent Incharge
c) will be rejected
96) While doing PNB SME Score and score comes above 40 to 46 (Yellow zone) the
application can be considered for sanction by :
a) Incumbent Incharge
b) Next higher authority
c) Consider for rejection
97) If Loan sanctioned on or after 01.01.2013 become NPA within lock in period claim with
CGTMSE will be lodged within :
a) one year from the expiry of lock-in period.

b) Two years from the expiry of lock in period
c) None of the above
d) Three years from the expiry of lock in period
98) If Loan sanctioned on or after 01.01.2013 become NPA after lock in period claim with
CGTMSE will be lodged within :
a) Two years from the date of NPA

b) One year from the date of NPA
c) One year from the expiry of lock in period
d) Three years from the expiry of lock in period
99) Guarantee fee and Annual service fee of CGTMSE has been charged as a composite
form as “Annual guarantee fee”. Standard rate of AGF for loans upto 100 lacs is 1%.
What will be the AGF charged where NPA level of the bank is above 20%
a) SR+50bps
b) SR+100bps
c) SR+25bps
d) SR

What will be the AGF charged where NPA level of the bank is below 6%
a) SR+50bps
b) SR+100bps
c) SR-25bps
d) SR
What will be the AGF charged where NPA level of the bank is 12% and below
a) SR+50bps
b) SR+100bps
c) SR-25bps
d) SR

ANSWERS - MSME
1 C 26 C 51 B 76 C
2 A 27 C 52 C 77 A
3 C 28 B 53 A 78 D
4 D 29 C 54 B 79 B
5 D 30 A 55 C 80 A
6 D 31 C 56 B 81 B
7 D 32 C 57 A 82 B
8 A 33 B 58 D 83 B
9 D 34 C 59 A 84 B
10 B 35 A 60 C 85 B
11 A 36 B 61 D 86 B
12 C 37 A 62 A 87 D
13 C 38 B 63 C 88 D
14 D 39 A 64 B 89 C
15 C 40 D 65 A 90 B
16 B 41 B 66 D 91 A
17 C 42 C 67 D 92 C
18 D 43 B 68 D 93 B
19 C 44 B 69 C 94 A
20 B 45 C 70 C 95 C
21 B 46 C 71 D 96 B
22 B 47 A 72 A 97 A
23 B 48 C 73 D 98 A
24 B 49 B 74 A 99 B
25 C 50 C 75 B 100 C
101 D

General Banking
01) As per section 17 of banking regulation act, 1949, every banking company
incorporated in India is required to create a reserve fund and to transfer to it
______________percent of profits.
a) 10%
b) 20%
c) 25%
d) 30%
02) Every bank is required to maintain at the close of business every day, a minimum
proportion of their Net Demand and Time Liabilities as liquid assets in the form of
cash, gold and un- encumbered approved securities. The ratio of liquid assets to
demand and time liabilities is known as Statutory Liquidity Ratio (SLR). The provision
is prescribed in section 24 of _______________________.
a) Banking Regulation Act

b) RBI Act
c) Negotiable Instruments Act
d) Securitisation Act
03) Banks are prohibited from holding any IP except as acquired for own use for a period
exceeding seven years under Section______of Banking Regulation Act.
a) Section 6
b) Section 8
c) Section 9
d) Section 11
04) A scheduled bank is a bank which is one______________
a) A Bank incorporated in India

b) A Bank name of which is included in second schedule of RBI Act
c) A bank having branches in more than 4 states in India
d) An Indian bank having one or more branches in foreign countries
05) Other than RBI and central Govt., no person in India, can issue promissory note/bill
of exchange payable to bearer on demand, u/s____ of RBI Act.
a) Section 18
b) Section 22
c) Section 23
d) Section 31
06) Date of issue of a cheque is 31-01-2014. The Cheque can be paid on or

before________
a) 30.04.2014
b) 01.05.2014
c) 31.07.2014
d) Cannot be paid

07) X and Y deal with each other by sale and purchase of goods. X draws a Bill of
exchange on Y and Y accepts it but no sale/purchase has taken place for this
bill. Such type of bills are called_____________.
a) Fake Bills
b) Complementary Bills
c) Accommodation Bills
d) Demand Bills
08) The plain sheet appended to a Negotiable instrument for the purpose of making
endorsements on the same is called______________
a) Enclosure
b) Annexure
c) Allonge
d) Appendix
09) Account Payee crossing has been defined in_______Act.
a) Negotiable Instruments Act

b) Banking Regulation Act
c) RBI Act
d) Not defined anywhere
10) The bankers code of commitment to customers is evolved by_________
a) Reserve Bank of India

b) Indian Banks’ Association (IBA)
c) Banking Ombundsman
11) Prevention of Money Laundering Act (PMLA) was passed in the year__________
a) 1991
b) 1995
c) 2002
d) 2006
12) Accounts with reduced KYC norms are known as__________
a) Student Accounts
b) Small Accounts
c) No Frills Accounts
d) Sweep Accounts
13) A person named in a will to act as a guardian is known as_____
a) Natural Guardian
b) Legal Guardian
c) Testamentary guardian
d) All of the above
14) Registering Authority for registration of Limited Liability Partnerships (LLPs) is
________

a) Registrar of Companies
b) Registrar of Firms
c) Ministry of Company Affairs
d) Registrar of Societies
15) Bank’s duty to maintain secrecy of accounts ends with______________
a) Closure of Account / Death of Accountholder

b) Settlement of claim case after the death of accountholder
c) Any event of the above which occurs in the last
d) Duty never ends
16) Type of Charge on Bank Deposits is ____________
a) Lien
b) Hypothecation
c) Pledge
d) Assignment
17) Clayton’s rule is applicable to___________out of accounts mentioned below.
a) Fixed Deposit accounts

d) Recurring Deposit accounts
c) Cash Credit & Overdraft Accounts
d) Term Loan & Demand Loan Accounts
18) As per bank policy, maximum time norms for disposal of complaints received
through Prime Minister’s Office is___________
a) 03 days
b) 07 days
c) 15 days
d) 21 days
19) In case of wrongful dishonour of a cheque by the bank, bank is liable to__________
a) Drawer of the cheque

b) Payee of the Cheque
c) Collecting Banker
d) All the above
20) How many times a cheque can be endorsed as per negotiable Instruments Act
a) Three times
b) Five times
c) Seven times
d) No such restriction
21) Who among the below can cross an uncrossed cheque?
a) Drawer of the cheque

b) Drawee of the cheque
c) Payee of the cheque
d) Any of the above
22) Account Payee Crossing is an instruction for the___________
a) Collecting Banker
b) Paying Banker
c) Payee of the cheque
d) All the above
23) Talwar Committee was constituted for giving recommendations on the matters
relating to_________
a) BASEL-I Norms
b) Agricultural Finance
c) Customer Service
d) Regional Rural Banks
24) Consumer Consumer Forum is allowed to take up cases for amount up to Rs.
___________
a) 10 Lacs
b) 20 Lacs
c) 50 Lacs
d) 75 Lacs
25) A deposit account is transferred to Inoperative category if____________
a) There is no customer induced transaction for the last 03 years.

b) There is no customer induced transaction for the last 02 years.
C) There is no customer induced transaction for the last 01 year.
d) There is no customer induced transaction for the last 06 months.
26) As per KYC/AML Guidelines, the accountholder in whose account a suspicious

Transaction is reported, should be informed through?
a) Registered Mail
b) E-mail
c) Both a & b
d) Not to be informed
27) As per KYC/AML guidelines, DD, MT, TT etc. for amount _____________ not to be
issued against cash.
a) 20000 & above

b) Above Rs. 20000
C) 50000 & above
d) Above Rs. 50000
28) As per KYC Guidelines, The records pertaining to the identification of the customer
and his address (e.g. copies of documents like passports, Identity cards, driving
licenses, PAN, utility bills etc.) obtained while opening the account and during the

course of business relationship, will be properly preserved for at least_____after
the business relationship is ended.
a) 3 years
b) 5 Years
c) 10 Years
d) 20 Years
29) As per section 11 of Banking Regulation Act, Minimum required for Paid-up capital &
Reserves for domestic banks is Rs.___________
a) Rs. 05 Lacs
b) Rs. 10 Lacs
c) Rs. 15 Lacs
d) Rs. 20 Lacs
30) RBI is the sole authority to issue currency notes of various denominations under
signatures of Governor, (except One rupee note, which is issued by Central Govt.
under Signature of Finance Secretary), as per Section___________of Reserve
Bank of India Act.
a) Section 7
b) Section 21
c) Section 22
d) Section 29
31) Normally valid for a period of 3 months. However, the drawer may___________
a) Increase the validity period to more than 3 months

b) May restrict the validity period to shorter than 3 months
c) Increase or decrease the validity period to more or less than 3 months
d) Cannot increase or decrease the validity period of 3 months
32) Section_________of N. I. Act protects a banker if the material alteration is not

apparent i.e. it is done in such a way that it cannot be detected with reasonable care,
prudence and scrutiny.
a) Section 10
b) Section 15
c) Section 89
d) Section 131
33) Duplicate drafts for amount up to Rs.______may be issued without waiting for non-
payment advice from drawee branch.
a) Rs. 2000
b) Rs. 5000
c) Rs. 10000
d) Rs. 20000
34) Noting & Protesting on dishonour of a bill is compulsory in case of a__________
a) Inland Bill

b) Foreign Bill
c) Demand Bills
d) Usance Bills
35) Section_______of NI act provides for criminal liability on the drawer of dishonored
cheque.
a) 85
b) 89
c) 131
d) 138
36) Banker’s Lien is available:
a) Statutorily under Section 170 of the Indian Contract Act.

b) Statutorily under Section 171 of the Indian Contract Act.
c) Under Section 19 of Banking Regulation Act.
d) As per the agreement between the banker and the customer.
37) In the case of time barred debt, the banker’s right of set off:
a) Can be exercised as the effect of limitation is to bar the remedy and not
to extinguish the debt.
b) Cannot be exercised without permission of the court.
c) Cannot be exercised because a time barred debt is not recoverable.
d) Cannot be exercised without borrower’s consent.
38) The Rule in Clayton’s case relates to—

a) Appropriation of payments.
b) Law of limitation.
c) Payment of interest on loan a/cs.
d) All the above
39) The maximum balance that can be maintained in an account in the name of a minor
and operated by him as—
a) No limit
b) Rs.25000
c) Rs.50000
d) Rs. 1 Lac
40) Mr. A, a minor had a SF a/c which showed a balance of Rs.6500 at the time of his
death. The a/c was being operated by Mr. A himself. The balance in the a/c is
payable to—
a) His natural guardian

b) His legal guardian
c) His legal heirs
d) As per Court Orders
41) In a partnership firm, a minor_____________
a) Can be a partner

b) Can only be a sleeping partner
c) Can be admitted to the benefits of the partnership at the discretion of the
managing partners.
d) Can be admitted to the benefits of the partnership with the consent of all
the partners.
42) A Private Limited Company is not required to have—
a) Memorandum of Association
b) Certificate of incorporation
c) Certificate of commence of business
d) All the above
43) Which of the following documents is called the ‘Birth Certificate’of a company?
a) Memorandum of Association
b) Articles of Association
c) Certificate of Incorporation
d) Certificate of Commencement of Business
44) The articles of Association of a co. define/state________
a) Internal rules and regulations of the Company

b) Paid up capital of the Company
c) Objectives of the Company
d) Domicile of the Company
45) What is the relationship between a banker and customer in case safe custody of
articles?
a) Debtor & Creditor

b) Agent & Principal
c) Bailee & Bailor
d) Trustee & Beneficiary
46) The ceiling on maximum number of partners in a partnership firm has been stated
in________
a) Indian Partnership Act

b) Indian Companies Act
c) Indian Contract Act
d) Transfer of Property Act
47) What is the maximum permissible number of members in a private limited company?
a) 10
b) 20
c) 200
d) 100
48) Protection to collecting banker against conversion is available under

section______of N. I. Act
a) 85

b) 85A
c) 131
d) 10
49) Which of the following documents cannot be endorsed?
a) Bill of Lading
b) Bank Draft
c) Cheque
d) Fixed Deposit receipt
50) Which of the following is not a material alteration in a cheque?
a) Alteration in date of the cheque

b) Converting general crossing to special crossing
c) Converting order cheque to bearer cheque
d) Alteration in the amount of cheque
51) An open cheque can be crossed by________
a) The drawer of the cheque

b) The payee of the Cheque
c) The holder of the cheque
d) Any of the above (a) to (c)
52) A bill dated 20.12.2011 payable one month after sight is presented for acceptance
on 21.12.2011 and is accepted on 23.12.2011. The bill will be due on___________
a) 23.01.2012
b) 24.01.2012
c) 25.01.2012
d) 26.01.2012
53) In case the rate of interest is not mentioned in Bill of exchange/Promissory Note,
_______
a) No interest can be charged

b) Interest will be charged @ 18% per annum
c) Interest will be charged at Bank Rate
d) Interest will be charged @ 12% per annum
54) The minimum number of members in a public limited company can be__________
a) 2
b) 5
c) 7
d) 10
55) KYC guidelines have been issued by RBI under the provisions of_______________
a) Section 42 of RBI Act

b) Section 23 of RBI Act
c) Section 35A of Banking Regulation Act

d) Section 24 of Banking Regulation Act
56) Provision relating to nomination is give in___________
a) RBI Act
b) Banking Regulation Act
c) Negotiable Instruments Act
d) Indian Contract Act
57) As regards compensation awarded by Ombundsman, it shall not exceed the loss
suffered by the complainant or Rs.________whichever is less.
a) Rs. 5 Lacs
b) Rs. 10 Lacs
c) Rs. 20 Lacs
d) Rs. 50 Lacs
58) Under Consumer Protection Act, complaint can be lodged within______
a) 6 months from cause of action

b) 1 year from cause of action
c) 2 years from the cause of action
d) 5 years from the cause of action
59) Under Consumer Protection Act, District Forum can take up cases for amount up to
Rs__________
a) 10 Lacs
b) 20 Lacs
c) 50 Lacs
d) 100 Lacs
60) What is the maximum time period during which the information is to be provided under
Right to Information?
a) 10 days
b) 15 days
c) 30 days
d) One month
61) What is the maximum amount of coverage under Deposit Insurance?
a) Rs. 50000
b) Rs. 100000
c) Rs. 200000
d) Rs. 500000
62) Hindi, written in____________ script is the official language of India.
a) Hindi
b) Sanskrit
c) Devnagri
d) Gurmukhi

63) CDSL and NSDL are the terms related to_________
a) Banking Operations
b) Foreign Trade
c) Capital Market
d) Money Market
64) How many sections are there in Negotiable Instruments Act 1947?
a) 81
b) 138
c) 147
d) 145
65) How many parties are there to a Promissory Note?
a) 2
b) 3
c) 4
d) 5
66) Appeal against the award of Banking Ombundsman can be made within 30 days
to_______
a) Indian Banks, Association

b) Ministry of Finance, Govt of India
c) Dy. Governor, Reserve Bank of India
d) A normal court
67) Garnishee Order is applicable only if the relationship between the banker &
customer is that of_____________
a) Debtor & Creditor

b) Creditor & Debtor
c) Agent & Principal
d) Principal & Agent
68) With reference to Capital Adequacy norms, which of the following is the item
attracting Zero Risk Weight?
a) Cash
b) Loan to Staff
c) Loan against FDR
d) (a) to (c) above
69) In case of cash receipt, Revenue Stamp is required to be affixed if amount is above
Rs________
a) 1000
b) 2500
c) 5000

d) 10000
70) Damodaran Committee was constituted to give recommendations about______
a) Financial Inclusion
b) Customer Service
c) SME Advances
d) Prudential Norms
71) Which of the following is false regarding Instant Credit Facility for cheque deposited
for collection.
a) Facility is available for one or more cheques within a limit of Rs. 15000
b) Facility is available to staff members also
c) Facility is not available in Minor Accounts
d) Facility is not available only if none cheque has been dishonoured (for
want of funds) in the last two months
72) RBI may appoint one or more of its officers in the rank of CGM or GM as Banking
Ombundsman for a period not exceeding ________________at a time
a) 1 year
b) 2 years
c) 3 years
d) 5 years
73) An Award from Ombudsman will not be binding on the bank unless the complainant
furnishes to it, within a period of__________from the date of receipt of award, a letter
of acceptance of the award in his full & final settlement.
a) 07 days
b) 15 days
c) 30 days
d) 3 months
74) As per Grievance Redressal Policy of the bank, database about complaints is to be
preserved for a period of at least____________for future reference.
a) 1 year
b) 3 years
3) 5 years
4) 7 years
75) As per time schedule for redressal of complaints, complaints releted to point of sale
transactions should be disposed off within a period of_________.
a) 07 days
b) 21 days
c) 30 days
d) 45 days

76) To sensitize staff about customer complaints, a monthly in-house magazine is
published with details about a few selected complaints alongwith its resolution. The
name of the magazine is____________
a) PNB Monthly Review

b) PNB Vigil
c) Customer Speaks
d) PNB Staff Journal
77) As per Customer Compensation Policy, in cases where neither bank nor customer is
at fault but fault lies elsewhere in the system (viz. hacking, phishing, etc.), the bank
would compensate the customer up to Rs_______only.
a) Rs. 5000
b) Rs. 10000
c) Rs. 25000
d) Rs. 50000
78) In case of delay in collection of cheque beyond 90 days in a saving bank account,
interest will be paid at the rate of__________
a) Saving Bank Rate

b) Saving Bank Rate+2%
c) Rate applicable to term deposit for the corresponding period.
d) 2% above the rate applicable to term deposit for the corresponding
period.
79) As per Customer Compensation Policy, Duplicate Draft will be issued

within________from the receipt of such request from the purchaser.
a) 7 days
b) A fortnight
c) 21 days
d) 30 days
80) As per Customer Compensation Policy, For ATM failure to dispense cash
transactions, compensation @ Rs. 100 per day is payable on delay beyond 7 days
in recrediting the amount to customer’s account provided the claim is lodged
within ________from the date of transaction.
a) 7 days
b) 10 days
c) 15 days
d) 30 days
81) A Garnishee Order is issued by a Court of Law under_________
a) Indian Contract Act 1872

b) Banking Regulation Act 1949
c) Code of Civil Procedure 1908
d) RBI Act 1934

82) All agreements with a minor are void ab-initio as per section 11 of_____
a) Indian Contract Act 1872

b) Indian Maturity Act 1875
c) Negotiable Instruments Act 1881
d) Banking Regulation Act 1949
83) Who of the following is called Karta of a Hindu Undivided Family?
a) The eldest member of the family.

b) The eldest male member of the family
c) Any member of the family with consent of all the members
d) Any male member of the family with consent of all the members
84) Under Prevention of Money Laundering Act require every banking company,
financial institution and intermediary, to furnish to__________information relating to
Cash transactions of the value of more than rupees ten lacs or its equivalent in foreign
currency.
a) Ministry of Finance, Government of India

b) FIU-IND
c) All the above
85) Under KYC Guidelines, correct risk categorization of the customer is to be done on
the basis of______.
a) Profession / activity
b) Type of the customer
c) ID proof / Address proof of the customer
86) ’There should be ‘MAY I HELP YOU' counter in the branches with a staff strength of
___________, to be manned by suitable persons.
a) 10 or above
b) 12 or above
c) 20 or above
d) 25 or above
87) What is the time limit for deciding complaints/appeals in Cosumer Forum, without
analysis/testing of commodities?
a) 1 months
b) 3 months
c) 5 months
d) 6 months
88) Interms of KYC-AML rules as per risk categorisation of the customers High networth
individuals (HNIs) are categorised as :
a) Low risk customers

b) Medium risk customers

c) High risk customers
d) HNI customers are not classified
89) As per compensation policy of the bank, In the event of Payment of cheques after
stop payment instructions, the bank will reverse such debit within_______of error
coming to notice.
a) 2 days
b) 7 days
c) 15 days
d) 21 days
90) Customer Relationship programs are held____________at Circle level wherein

customers are invited to know their grievances and have suggestions.
a) Once in a quarter
b) Once in a half year
c) Once in a Year
d) Every month
91) Code of Bank’s Commitment to Customers will be reviewed by BCSBI within a period
of__________in a transparent manner.
a) One year
b) Two years
c) Three years
d) Five years
92) Drafts / Cash orders for an amount upto and inclusive of ______ may be issued with
signature of one GBPA holder.
a) Rs. 7500
b) Rs. 10000
c) Rs. 25000
d) Rs. 50000
93) All cheques of Rs__________, (drawn in our customers’ accounts) received across
the counter or received in Debit Clearing would invariably be processed through
‘Magnifying Glass’ & the‘UV Lamp’ before putting these cheques to the
Transaction Process.
a) Rs. 10000 & above

b) Rs. 25000 & above
c) Rs. 100000 & above
d) Rs. 100000 & above
94) Cash payments to the third party at service sol i.e. non parent sol of the account holder
is restricted upto_____ in SF and upto _____ in CA per day.
a) Rs. 25000 and Rs.50000

b) Rs. 50000 and Rs. 1.00 lac
c) Rs. 100000 and Rs. 2.00 lacs
d) No payment to the third party will be permitted at service SOL.

95) Ordinarily, the duties of clerical staff should be rotated after_______
a) 6 months
b) 9 months
c) 1 year
d) 3 years
96) On the rcommendations of ____________, our bank has appointed Chief Customer
Service Officer (CCSO) to act as Internal Ombudsman (IO) for ensuring that the
minimum number of cases gets escalated to the Banking Ombudsman (BO).
a) Rangarajan Committee
b) Talwar Committee
c) Damodaran Committee
d) Tandon Committee
97) Rate of Interest on clean overdraft facility for staff members has been reduced
to______w.e.f. 01.04.2016
a) MCLR
b) Base Rate
c) 10%
d) 11%
98) Inters of KYC-AML policy accounts of “Gatekeepers” such as accountants, lawyers,

or other professionals for their clients where the identity of the underlying client is not
disclosed to the financial institutions are categorised
a) Low risk customers

b) High risk customers
c) Medium risk customers
99) As per Rajbhasha Policy, at least ___________ of Liabrary budget should be allotted
to Hindi books.
a) 25%
b) 50%
c) 60%
d) 75%
100) BCSBI has been constituted on the recommendations of__________________
a) Goiporia Committee
b) Talwar Committee
c) Tarapore Committee
d) Damodaran Committee

ANSWERS – GENERAL BANKING
1 B 26 D 51 D 76 D
2 A 27 C 52 C 77 A
3 C 28 B 53 B 78 D
4 B 29 A 54 C 79 B
5 D 30 C 55 C 80 D
6 A 31 B 56 B 81 C
7 C 32 C 57 B 82 A
8 C 33 B 58 C 83 B
9 D 34 B 59 B 84 B
10 D 35 D 60 C 85 A
11 C 36 B 61 B 86 A
12 C 37 A 62 C 87 B
13 C 38 A 63 C 88 C
14 A 39 A 64 C 89 A
15 D 40 C 65 A 90 B
16 D 41 D 66 C 91 C
17 C 42 C 67 A 92 D
18 C 43 C 68 A 93 C
19 A 44 A 69 C 94 B
20 D 45 C 70 B 95 A
21 D 46 B 71 D 96 C
22 A 47 C 72 C 97 A
23 C 48 C 73 C 98 B
24 B 49 D 74 B 99 B
25 B 50 B 75 D 100 C

QUESTION ON PRIORITY SECTOR - 2016
1) The distinction for Lending to Agriculture i.e. Direct and indirect dispensed with. Now
agriculture sector has been re-difined:
a) Farm Credit (Short term crop loan and medium / long term credit
b) Agriculture Infrastructure
c) Ancillary Activities
d) All the above
2) Service area approach is now applicable in case of only
a) SME advance
b) Financial inclusion
c) Govt. Sponsored schemes
d) Agricultural advances e. b & c
3) Name the committee which recommended the new priority sector norms which have
come into effect from 23.04.2015
a) S.L Kapoor Committee

b) R.V Gupta Committee
c) Johl Committee
d) Internal working group of RBI
4) Rural Area as per RBI Definition is place where the population is less than
a) 50000
b) 20000
c) 100000
d) 10000
5) The priority sector targets are linked to the following .
a) Net Bank Credit

b) Adjusted Net Bank Credit
c) Credit equivalent of off balance sheet exposure
d) b or c whichever is higher
6) What is minimum and maximum age criteria under PMEGP scheme
a) 18 years, 65 years
b) 21 years, 60 years
c) 18 years, 45 years
d) 18 years, No limit
7) Foreign banks with 20 branches and above have to achieve the total priority sector
target by years ending _________ .
a) 31.03.2017
b) 31.03.2018
c) 31.03.2020

8) Foreign banks with less than 20 branches have to achieve the total priority sector target
of 40 %in phased manner by the end of :
a) 31.03.2017
b) 31.03.2020
c) 31.03.2020
9) Within the 18 percent target for agriculture what is the target fixed for Small and
Marginal Farmers:
a) 5%
b) 6%
c) 8%
10) Over all target fixed for Small and Marginal farmers upto which date it is to be achieved
by the banks:
a) 31.03.2020
b) 7% to be achieved by 31.03.2016
c) 9% to be achieved by 31.03.2017
d) 8% to be achieved by 31.03.2017
11) Foreign banks with 20 branches and above have to achieve the total Agriculture target of
18 % by years ending _________ .
a) 31.03.2017
b) 31.03.2018
c) 31.03.2020
12) What is the target fixed for financing agriculture to foreign banks with less than 20
branches
a) 18% as fixed for banks having branches more than 20

b) No sub target fixed
c) 8% by 31.03.2017
13. Credit equivalent of the amount of off-balance sheet exposure or ____% of ANBC
whichever is higher to be achieved as advance to micro enterprises by 31.03.2017
a) 8%
b) 7.5%
c) 7%
14) Overdraft of Rs. 5000/- allowed to customers under Jandhan scheme is a part of :
a) Clean OD facility of bank

b) Non Priority sector area

c) Priority sector
15) Sub target for micro enterprises will be applicable to foreign Banks with 20 and above
branches would be applicable post :
a) 2015
b) 2016
c) 2018
16) What is the target fixed for weaker sections
a) 8% of ANBC
b) 7.5% Off balance sheet items
c) 10% of ANBC or Credit equivalent to Off balance sheet exposure whichever
is higher
17. With regard to priority sector what do you mean by on-lending :
a. Lending to Farmers for production crop

b. Lending to manufacturing sector for goods manufacture
c. Loans to eligible intermediaries for onward lending to create PS assets
18) Foreign banks with less than 20 branches has to achieve the 40% total priority sector in
a phased manner. Which is the target fixed for 2016-17 :
a) 40%
b) 36%
c) 34%
a) 40%
b) 10%
c) 36%
a) 40%
b) 36%
c) 38%

a) 40%
b) 36%
c) 40%
22) Loans to distressed farmers indebted to non-institutional lenders are to categorized

under which category of priority sectors :
a) Agriculture Non farm sector

b) Agriculture Service Sector
c) Agriculture Farm credit
d) Not covered under priority sector
23) As per new Priority sector guidelines of RBI purchasing a land for agriculture purposes
by small and marginal farmers will be covered under:
a) Agriculture Land purchase sector

24) Loans to farmers upto Rs.50 lakh against warehouse receipts (pledge / hypothecation of
agricultural produce) for a period not exceeding 12 months are to be classified under:
a) Agriculture – Farm credit

b) MSME Advance
c) Micro finance
25. Loans to farmers for post harvest activities like grading and transporting will be classified
under :

26. Maximum loan allowed in KCC scheme of the bank:
a) Rs.50 lacs
b) Rs.3 lacs
c) Rs.5 lacs
d) Rs.2 lacs
27) Medium and Long term loans to farmers for purchase of agricultural implements and
machinery for irrigation and other developmental activities will be classified under:


28) An aggregate limit sanctioned for Rs.100 crore per borrower for construction of storage
facilities like warehouses, market yards, godowns and silos will be classified:

b) Agriculture Infrastructure Sector
29) An aggregate limit sanctioned for Rs.100 crore per borrower for Foods and Agro
processing will be classified:

b) Agriculture Infrastructure Sector
c) Ancillary activity
30) For the purpose of computation of Targets under Small and marginal farmers, which of
the following will be classified as Small Farmers:
a) Farmers with land holding upto 1 hectare

b) Farmers with land holding more than 1 hectare and upto 2 hectare
c) No criteria of land
31) For the purpose of computation of Targets under Small and marginal farmers, which of
the following will be classified as Marginal Farmers:
a) Farmers with land holding upto 1 hectare

b) Farmers with land holding more than 1 hectare and upto 2 hectare
c) No criteria of land
32) Landless agricultural labourers, tenant farmers, oral lessees and share croppers will be
classified as :
a) Advances to land less laborers

b) Small and marginal farmers for computation of 8% target
c) Since it is labour not covered under Priority sector activity
e) None of the above
33) With regard to classification as Micro enterprises under MSME manufacturing sector
scheme, investment in Plant and machinery not to exceed Rs)_______
a) 5 crores
b) 25 lacs
c) 5 lacs
34) With regard to classification as Small enterprises under MSME manufacturing sector
scheme, investment in Plant and machinery should be Rs._______
a) more than 5 crores

b) more than 25 lacs and does not exceed Rs.5 crores

c) more than 5 lacs and does not exceed Rs) 10 crores)
35) With regard to classification as Medium enterprises under MSME manufacturing sector
scheme, investment in Plant and machinery should be Rs._______

b) more than 5 crore and does not exceed Rs.10 crores
c) more than 5 lacs and does not exceed Rs) 10 crores)
36) With regard to classification as Micro enterprises under MSME Service sector scheme,
investment in Plant and machinery not to exceed Rs._______
a) 5 crores
b) 10 lacs
c) 5 lacs
37) With regard to classification as Small enterprises under MSME Service sector scheme,
investment in Plant and machinery should be Rs._______

b) more than 10 lacs and does not exceed Rs.2 crores
c) more than 5 lacs and does not exceed Rs.10 crores
38) With regard to classification as Medium enterprises under MSME service sector scheme,
investment in Plant and machinery should be Rs)_______

b) more than 2 crore and does not exceed Rs.5 crores
c) more than 5 lacs and does not exceed Rs. 10 crores.
39) Loans to KVI Sector ( Khadi and Village Industries ) will be eligible for classification
under:
a) 7/7.5% sub target classification under Micro enterprises category of PS

b) KVI is a separate category for overall goal of Government of India
c) Not to be classified as PS Advance
40) MSME units will continue to enjoy the PS sector lending status for ______ years after
they grow out of the MSME category of concerned category:
a) One year
b) Five Years
c) Three Years
d) Once grow out not to allow any benefit
41) Export credit extended by foreign banks with less than 20 branches will be classified as
priority sector upto :

a) Incremental export credit over corresponding previous year date upto 2% of
ANBC or credit equivalent amount of OBE effective 1.4.2017
b) Incremental export credit over corresponding previous year date upto 2% of
c) Export credit allowed upto 32% of ANBC or Credit equivalent to OBE
whichever is higher.
42) Export credit extended by foreign banks with 20 branches and above will be classified
as priority sector upto :
a) Incremental export credit over corresponding previous year date upto 2%

of ANBC or credit equivalent amount of OBE effective 1.4.2017
b) Incremental export credit over corresponding previous year date upto 2% of
c) Export credit allowed upto 32% of ANBC or Credit equivalent to OBE whichever
is higher)
43) Export credit extended by domestic banks will be classified as priority sector upto :
a) Incremental export credit over corresponding previous year date upto 2% of

b) Incremental export credit over corresponding previous year date upto 2%
of ANBC or credit equivalent amount of OBE effective 1.4.2015 subject to
sanctioned limit of Rs.25 crores per borrower to unit having turnover upto
Rs.100 crore.
c) Export credit allowed upto 32% of ANBC or Credit equivalent to OBE whichever
is higher)
44) Loans to individuals for studying abroad will be classified as Priority sector upto
outstanding amount of Rs._________
a) 20 lacs
b) 10 lacs
c) Both of the above
45) Loans to individual for studying in India will be classified as Priority Sector upto
Rs._______ irrespective of the sanctioned amount :
a) 50 lacs
b) 10 lacs
c) 20 lacs
46) Housing loans to individuals in metropolitan centres ( with population of 10 lakh and
above ) will be classified as Priority Sector upto __________ provided over all cost of
unit does not exceed Rs.35 lacs.
a) Rs.28 lacs

b) Rs.25 lacs
c) Rs.20 lacs
d) Housing finance does not come under PS category)
47) Housing loans to individuals for purchase / construction of a dwelling unit per family in
other than metropolitan centres will be classified as Priority Sector upto __________
provided over all cost of unit does not exceed Rs.25 lacs
a) Rs.28 lacs
b) Rs.25 lacs
c) Rs.20 lacs
d) Housing finance does not come under PS category)
48) Loans upto Rs.________ for repairs to damaged dwelling unit of family will be c
ategorized as Priority Sector advance :
a) Rs.10 lacs in Metro and Rs.5 lacs other than metro

b) Rs. 5 lacs in metro centre and Rs.2 lacs in other centres
c) Rs.8 lacs in Metro centre and Rs.5 lacs in other centres.
49) Loans given to Government agency for constructions of dwelling unit will be classified
as priority sector subject to :
a) Rs. 20 lacs per unit

b) Rs. 10 lakh per unit
c) Rs. 5 lakh per unit
50) To identify economically weaker sections and low income groups family income
irrespective of location should not exceed:
a) Rs. 5 lacs per annum

b) Rs. 2 lakh per annum
c) Rs. 10 lakh per annum
d) No income criteria prescribed)
51) Bank loans for constructions of social infrastructure like schools, health care facilities,
drinking water facilities and sanitation in Tier II to Tier VI centres will be classified as
priority sector provided limit does not exceed :
a) Rs. 2 crores
b) Rs. 5 crores
c) No limit
52) As per RBI guidelines Tier II centre means :
a) Population between 50000 to 99999

b) Population between 20000 to 49999
c) Population between 10000 to 19999
d) Population between 5000 to 9999

53) As per RBI guidelines Tier III centre means :

54) As per RBI guidelines Tier IV centre means :

55) As per RBI guidelines Tier V centre means :

56) As per RBI guidelines Tier VI centre means :

d) Population Less Than 5000
57) As per RBI guidelines Tier I centre means :
a) Population 100000 and above

58) With regard to group wise classification of centre by RBI Rural centre means :
a) Population upto 9999

b) Population from 10000 to 99999
c) Population from 100000 to 999999
d) Population from 1000000 and above
59) With regard to group wise classification of centre by RBI Semi Urban centre means :

60) With regard to group wise classification of centre by RBI URban centre means :

61) With regard to group wise classification of centre by RBI Metro centre means :

62) With regard to renewable energy projects like generation of solar based power, biomass
based power generation, wind mills, micro hydel plants and for non conventional energy
based public utilities will be classified as Priority sector provided bank loan limit not to
exceed Rs._______
a) Rs. 5 crores
b) Rs. 15 crores
c) Rs. 10 crore
d) Rs. 25 crore
63) Where individual borrower’s household annual income in rural area and non rural area
does not exceed Rs.100000/- and Rs.160000/- respectively, loan upto an amount not
exceed Rs._______ will be classified as priority sector:
a) Rs.100000/-
b) Rs.50000/-
c) Any amount
64) Loans to distressed persons (other than farmers) for an amount not exceeding
Rs._______ Per borrower to repay their debt to non-institutional lenders will be classified
as Priority Sector:
a) Rs.100000/-
b) Rs.50000/-
c) Any amount
65) Where individual borrower’s household annual income in rural area and non rural area
does not exceed Rs.100000/- and Rs.160000/- respectively, overdraft upto an amount
not exceed Rs._______ under PMJDY will be classified as priority sector:
a) Rs.100000/-
b) Rs.5000/-
c) Any amount
66) Priority sector loans to which of the following category will be considered under weaker
sections category:
A) Artisans, village & cottage industries where individual credit not to exceed 1 lakh
b) Schedule Caste and schedule tribes, DRI Schemes, Self help groups

c) Women beneficiary upto Rs.1 lakh per borrowers, Disable persons, Minorities
d) All the above.
67) Whether overdraft of Rs.5000/- allowed under PMJDY is to be classified loans to weaker
sector provided annual income in rural area and non rural area does not exceed
Rs.100000/- and Rs.160000/- respectively:
a) Yes
b) No
c) Can not say
68) Bank loan to MFIs for on lending to individuals / SHGs / JLGs will be eligible for PS
categorization provided not less than 85% if total assets of MFI ( other than cash,
balances with banks/FIs, Govt) securities, money market instruments) are in the nature
of qualifying assets) Qualifying assets shall mean :
a) Loan to borrower whose household annual income not to exceed in rural
Rs.100000/- and in Non rural areas Rs.160000/-. Tenure of loan is not less than
24 months)
b) In the first cycle loan not to exceed Rs.60000/- and in subsequent cycle 100000/-
c) Total indebtedness of borrower does not exceed Rs.100000/-, loan without
collateral)
d) All of the above
69) To ensure continuous flow of priority sector monitoring will be done on _________
basis:
a) Monthly
b) Annual
c) Quarterly
d) No monitoring is required
70) Any shortfall amount in lending to priority sector shall be contributed by the scheduled
commercial banks as decided by RBI to the funds available with :
a) RIDF (NABARD)
b) other funds with NABARD
c) Other funds with NHB/SIDBI
d) All above
71) Rate of interest on bank loans covered under priority sector shall be charged as per the
directives issued by :
a) Board of the Bank

b) Risk Management department of the respective bank
c) Reserve Bank of India
72) What is the loan related service charges / inspection charges on priority sector loans
upto Rs.25000/-

a) As per Charges policy of the respective bank
b) As per RBI directives no charges
c) Minimum 450/- per borrower irrespective of loan
73) The term “all inclusive interest” includes :
a) Interest charged on loan portfolio

b) Interest, processing fee and service charges
c) Base rate of the bank
74) Outstanding deposits with SIDBI on account of Priority sector shortfall will be classified
under following categories of Priority sector
a) Agriculture
b) MSME
c) Export credit
75) MSMED Act 2006 does not provide for any sub-categorization within the definition of
micro enterprises what is the sub target for lending to micro enterprises has been fixed :
a) 20% of the total MSME advance should go to unit having investment in Plant and
machinery 10 lacs
b) Out of total 60% target 40 % goto micro units having investment in P&M 4 lacs
c) No sub target fixed

ANSWER – PRIORITY SECTOR
1 D 26 A 51 B
2 C 27 C 52 A
3 D 28 B 53 B
4 D 29 C 54 C
5 D 30 B 55 D
6 D 31 A 56 D
7 B 32 B 57 A
8 B 33 B 58 A
9 C 34 B 59 B
10 D 35 B 60 C
11 B 36 B 61 D
12 B 37 B 62 B
13 B 38 B 63 B
14 C 39 A 64 A
15 C 40 C 65 B
16 C 41 C 66 D
17 C 42 A 67 A
18 C 43 B 68 D
19 C 44 B 69 C
20 C 45 B 70 D
21 C 46 A 71 C
22 C 47 C 72 B
23 C 48 B 73 B
24 A 49 B 74 B
25 C 50 B 75 C

BANKING REGULATION
BANKING REGULATION ACT Act:
1) Statutory liquidity ratio (SLR) is prescribed under which of the following regulation?
(a) Section 24, Banking Regulation Act 1949.
(b) Section 42(1), Banking Regulation Act 1949
(c) Section 24, RBI Act 1934
(d) Section 42(1), RBI act 1934.
2) With regard to Banking term SLR means :

(a) Special Liquidity Ratio
(b) Statutory Liquidity Ratio
(c) Special Linear Relationship
(d) Specially Lowered Risk
3) What is the maximum extent, upto which a bank can hold the shares of a company when
it is pledge or mortgagee or absolute owner?
(a) No ceiling
(b) 5% of the total unsecured loans
(c) 30% of its own paid up capital and reserves or 30% of the paid up capital of
the company, whichever is lower.
(d) 30% of its own paid up capital and 30% of the paid up capital and reserves of the
company, whichever is lower.
4) A customer wants return of his paid cheques. He can ask his bank under which
provision:
(a) RBI Act Section 45

(b) Negotiable Instruments Act Section 45Z
(c) Banking Regulation Act Section 45Z
(d) Negotiable Instrument Act Section 45ZA
RESERVE BANK OF INDIA Act:
5) The highest amount of denomination of bank note which RBI can print:
(a) Rs 100
(b) Rs 500
(c) Rs 1000
(d) Rs 10000
6) Cash reserve ratio is calculated by banks on the basis of which of the following:
(a) Demand and time deposit

(b) Demand and time liabilities
(c) Demand loans and term loans
(d) None of above

7. What is the minimum amount upto which the CRR balance should be maintained by a
bank on a daily basis:
(a) 5% of net demand and time liabilities

(b) 50% of the average fortnightly balances
(c) 70% of the average fortnightly balance
(d) 80% of the average fortnightly balance.
8) On CRR balances maintained with RBI, banks get --------- rate of interest On CRR
balances maintained with RBI:
(a) Saving bank

(b) nil
(c) Bank rate
(d) repo rate
9) The minimum and maximum SLR can be fixed by RBI at ------% and ------- of net
demand time liabilities, respectively:
(a) RBI can fix without any floor or ceiling.

(b) No minimum, max 20%
(c) No minimum, max 40%
(d) Min 3%, max 15%
10) The floor limit for maintaining CRR is:
(a) 3%
(b) 4%
(c) 5%
(d) None of these
NEGOTIABLE INSTRUMENT Act:
11) Where amount in words and figures differ, the provision for making the payment of
amount mentioned in words in a cheque is described u/s ------- of NI act.
(a) 18
(b) 19
(c) 20
(d) 21
12) What is the essential requirement of a special crossing out of the following:
(a) Words within lines or without lines

(b) name of bank, within lines
(c) Rubber stamp of the bank
(d) name of bank within or without lines.
13) In which of the following circumstances, the bank does not become holder for value.
(a) Bank purchased a cheque and credited the amount to customer’s account
(b) Bank purchased a demand bill from a trading firm

(c) Bank branch received a bill for collection which is sent to other branch of t
he bank.
(d) Bank branch discounted a usance bill which it sent to its other branch for
collection of payment on due date
14) A grace period of 3 days is allowed before payment, in respect of which of the following
instruments:
(a) Demand bills and usance bills

(b) demand promissory notes and usance promissory notes
(c) Demand promissory notes and demand bills.
(d) Usance promissory notes and usance bills of exchange.
15) As per provisions of NI ACT 1881 Which of the following is most appropriately called
general crossing :
(a) Words written within two parallel lines

(b) Words written within 2 lines or without lines.
(c) Two parallel lines or without words.
(d) Name of the bank, without lines or within lines.
16) Which of the following features is not present in a non-negotiable crossed cheque:
(a) It can be endorsed any no of times.

(b) It can be transferred from one person to another any no. of times.
(c) This cheque has only a holder and not holder in due course
(d) None of the above
17) What punishment is prescribed under NI Act for dishonour of cheque
(a) Fine equal to the amount of cheque

(b) Fine upto double the amount of cheque
(c) Imprisonment upto 2 years
(d) b and C
18) An inchoate cheque represents which of the following:
(a) A Stale cheque

(b) A post-dated cheque
(c) An ante-dated cheque
(d) An incomplete cheque
RELATIONSHIP - BANKER AND CUSTOMER
19) Safe Custody of Articles - Out of the following select appropriate relationship between
a banker and a customer :
(a) Bailer and bailee

(b) Trustee and beneficiary
(c) Bailee and bailer
(d) Agent and principal

20) Relationship between the bank and customer is not correctly stated, select one out of 4
below:
(a) Shares given for sale –agent and principal

(b) Garnishee order- debtor and creditor
(c) Payee of draft – trustee and beneficiary
(d) Articles left by mistake – agent and principal
21) Banks maintain secrecy in terms of which among the following:
(a) Banking Regulation Act Section 27

(b) RBI Act Section 17.
(c) Banking Companies (Acquisition & Transfer of Undertakings of
Undertakings) Act 1970 Section 13.
(d) Banking Secrecy Action Section 43.
22) In case of cash credit account, the first credit will be adjusted against which of the
following.
(a) It will be adjusted against first debit

(b) It will reduce the outstanding balance
(c) It will reduce the sanctioned limit
(d) It will reduce the outstanding balance
23) A bank has a right named Right of ______ to combine a loan account and a deposit
account of customer, in the same capacity:
(a) Set off

(b) adjustment
(c) lien
(d) appropriation
24) “A customer is a person who maintains an account with a bank‟. The definition of the
customer is available as per:
(a) KYC guidelines of RBI

(b) Negotiable Instruction Act.
(c) RBI Act
(d) Consumer protection Act
TYPE OF CUSTOMERS
25) Out of the following describe owners of a public limited company:
(a) Directors
(b) shareholders
(c) Debenture holders
(d) Either a or B
26) A minor knew before his majority that he was admitted to the benefit of partnership firm
but he remains quite for one year after majority. Describe nature of his liability in the
partnership?

(a) He is liable like other partners from the date of his admission for benefits.
(b) He is liable from date of attaining majority
(c) He is not liable as he has not given his consent
(d) His liability is to the extent of his share in the firm.
27) In a public limited company, maximum and minimum no. of shareholders is:
(a) 50 and 10
(b) 100 and 2
(d) 1000 and 100
(d) No limit and 7
28) In a partnership firm, the no. of partners cannot go beyond 100. The provision with
regard to maximum no. of partners is given in :
(a) Indian Partnership act

(b) Indian Contract Act
(c) Companies Act 2013
(d) Banking Regulation Act
29) Deposit accounts in the name of minor, of which of the following should submit
photographs:
(a) Minor
(b) minor and his mother father
(c) Guardians
(d) none of the above.
GARNISHEE & INCOME TAX ATTACHMENT ORDER:
30) From the following who can request to issue garnishee order:
(a) court
(b) Judgement debtor
(c) Bank
(d) J udgement Creditor
31) Your branch has received a garnishee order in the name of your customer having saving
bank account, with following transactions. Order on Which of the following will not be
applicable
(a) An advice prepared for sending to another branch after debit to the account
(b) Cheque was sent in collection, from another branch but not credit to the account
so far.
(c) Cheque sent in clearing but not realised & amount of which credited to the
account.
(d) An amount of Rs 4000 credited by mistake to the account of the customer.
KNOW YOUR CUSTOMER AND ANTI MONEY LAUNDERING
32) The objective to obtain photograph while opening an account of the customer:

(a) Ensuring protection against conversion in case of collection of cheque.
(b) ensuring provision of NI Act
(c) proper identification of the customer
(d) all the above.
33) The Cash transaction report (CTR) is submitted by banks on a monthly basis to :
(a) RBI, single cash transaction above Rs 10 lacs or aggregate of cash transaction
exceeding Rs.10 lacs in a month
(b) FIU-India, single cash transactions above Rs 10 lacs or aggregate of cash
transaction exceeding Rs.10 lacs in a month
(c) FIU-India, cash transactions of RS 10 lacs or above.
(d) RBI, cash transaction of Rs 10 lacs or above.
34) A customer undertakes a large amount cash transaction through his account. In spite of
enquiring from him, he does not provide the details.
(a) report to local police

(b) report to RBI
(c) report to FIU-India.
(d) No reporting is required.
35) Which of the following accounts is covered in the low risk category of customers:
(a) public limited company account

(b) high net worth individual a/c
(c) Salaried employee
(d) non –resident Indian.
36) As per KYC guidelines PAN is required to be quoted if cash transaction exceeds the
amount:
(a) Rs 49999/-
(b) Rs 50000/-
(c) 100000/-
(d) 10000/-
NOMINATION:
37) A nominee gets payment from the bank in a deposit account after death of the customer
as:
(a) Owner of the deposit

(b) as agent of the legal heirs
(c) As agent of the deceased customer
(d) none of the above
38) A saving bank depositor wants to cancel the nomination he had made. Which of the
following form will be used?
(a) DA-1
(b) DA-2

(c) DA-3
(d) SL -3
39) Which of the following requires to be witnessed in case of nomination in a deposit

account:
(a) Where minor is appointed as nominee

(b) Where nomination is made by way of thumb impression
(c) Where nomination is made by say of signature in vernacular.
(d) A and b both.
CUSTOMER SERVICE:
40) As per extant RBI guidelines, the banks can allow immediate credit of out-station
cheques, where the amount of which cheque is max Rs ---------------.
(a) Rs 5000
(b) Rs 10000
(c) Rs 15000
(d) at discretion of the bank
Banking Ombudsman Scheme 2006:
41) If there is dispute between customer and the bank relating to credit card, where the
Ombudsman decides to give compensation to the customer, what is the maximum
amount of compensation:
(a) Rs 1.00 lacs

(b) Rs 2.00 lacs
(c) Rs 5.00 lacs
(d) Rs 10.00 lacs
42) What is the maximum time available to a customer for lodging complaint to Ombudsman:
(a) 1 month from date of complaint made to bank and no reply received
(b) 1 year from date of receipt of reply from the bank but customer is not satisfied
(c) 1 year from date of lodgement of complaint with the bank + 1 month, where reply
has not been received.
(d) c or b
43) Aggrieved party on the award of Ombudsman, can make application for review to
appellate authority----------- within 30 days of the date of receipt of award:
(a) Governor RBI

(b) Dy. Governor RBI
(c) Chairman IBA
(d) Judge of Distt Court
44) Banks are required to place all the awards of Banking Ombudsman, remaining
unimplemented for more than ------- months with the reasons therefore, before the
Customer Service Committee of the Board to enable the Committee to report to the

Board such delays in implementation without valid reasons and for initiating necessary
remedial action.
(a) One month

(b) Two Months
(c) 3 Months
(d) 6 Months
45) Which of the following type of complaint if referred to Ombudsman, will be rejected?
(a) Frivolous, vexatious, malafide

(b) Without sufficient cause
(c) Not pursued by the complainant with diligence
(d) All the above
46) The maximum amount of compensation the Ombudsman can allow to a customer under
Banking Ombudsman Scheme:
(a) Rs 10.00 lacs

(b) Maximum Rs 10 lac
(c) Actual loss with a maxi Rs 10 lacs
(d) Actual loss but not less than Rs 10.00 lacs
THE CONSUMER PROTECTION ACT
47) Which is incorrect with regard to financial jurisdiction of various consumer courts under
the Consumer Protection Act:
(a) Distt Forum – upto Rs 20 lacs

(b) State Commission – above Rs 20 lacs and upto Rs 100 lacs
(c) National Commission – above Rs 100 lacs and above
(d) Supreme Court – above the National Commission
48.) what is the Limitation period for appeal from one consumer court to another consumer
court :
(a) 30 days from date of order

(b) 45 days from date of order
(c) 45 days from date of receipt of order
(d) 30 days from date of receipt of order
Cheque Collection Policy:
49) Which of the following is correct with regard to time frame for collection of cheques
drawn at outstations:
(a) State Capitals- 7 days

(b) Major Cities- 14 days
(c) Other locations – 21 days
(d) all the above

50) Upto what amount Inter SOL cash payment will be allowed in respect of accounts
in the name of individual(s) if cheque drawn favoring self:
(a) Rs 5,00,000 per transaction

(b) Rs 1,00,000 per transaction
(c) Rs 2,00,000 per transaction
(d) Rs 50,000 per transaction
51) Bank will consider providing immediate credit for third party cheques upto the aggregate
value of Rs 15000/- tendered for collection by individual account holders. Which is
incorrect?
(a) Account opened at least six months earlier and complying the KYC norms.
(b) This facility is available for resident as well as non resident account
holders.
(c) During the preceding three months, no cheques/instruments for which immediate
credit was afforded returned unpaid for financial reasons.
(d) Where the bank has not experienced any difficulty in recovery of any amount
advanced in the past including cheques returned after giving immediate credit.
COMPENSATION POLICY:
52) If the bank has raised an unauthorised/erroneous debit to an account, the entry will be
reversed immediately on being informed of the erroneous debit, after verifying the
position and in cases where neither in the system(viz. hacking, phishing etc), the Bank
would compensate the customer upto only -----------------------)
(a) Rs 1000
(b) Rs 2000
(c) Rs 3000
(d) Rs 5000
53) ATM has not dispensed the cash but account debited, the dispute regarding such
transactions is to be resolved by banks within:
(a) 7 working days

(b) 10 days
(c) 12 days
(d) 15 days
54) In case a cheque has been paid after stop payment instruction is acknowledged by the
bank, the bank shall reverse the transaction and give value-dated credit to protect the
interest of the customer. Such debits will be reversed within ______of the customer
intimating the transaction to the bank:
(a) Twenty four hours

(b) Two days
(c) Three days
55) Duplicate draft will be issued within ____ from the receipt of such request from the
purchaser thereof. For delay beyond the above stipulated period, interest at the rate

applicable for fixed deposit of corresponding period will be paid as compensation to the
customer for such delay.
(a) Week
(b) 15 days
(c) Month
(d) Two months
GRIEVANCE REDRESSAL POLICY:
56) Complaints requiring some time for examination of issues involved/detail investigations/
enquiries. Bank will send final response or explain reasons for further time required
within _______days of receipt of complaint.
(a) 15 days
(b) 21 days
(c) 30 days
(d) 4 5 days
57) In the branch level customer service committee, which of the following can be a member
(a) staff member (b) customers (c) Senior Citizens
(a) a to c all
(b) a and b only
(c) b and c only
(d) a and c only
58) The branch level customer service committee is required to meet _______ to study
complaints/suggestions, cases of delay etc. and evolve ways and means of improving
customer service.
(a) Once a year

(b) once in 6 months
(c) Once in 3 months
(d) on 15th of every month
BCSBI
59) With a view to look into the grievances of customers, which of the following has been
established
(a) Banking Codes and Standards Board of India on the lines of similar Board in
UK
(b) Banking Customer Standards Board of India.
(c) Banking Practices for Customers Board
60) Banking Codes and Standards Board of India is promoted as a _____ and is _____:
(a) Company, under RBI

(b) Society, independent body
(c) Trust, under IBA
(d) Autonomous body, under Ministry of Finance, Govt of India

ANSWERS
1 A 16 C 31 C 46 C
2 B 17 D 32 C 47 D
3 C 18 D 33 B 48 A
4 C 19 C 34 C 49 A
5 D 20 D 35 C 50 A
6 D 21 C 36 A 51 B
7 C 22 A 37 B 52 D
8 B 23 A 38 B 53 A
9 C 24 A 39 B 54 B
10 D 25 B 40 D 55 B
11 A 26 A 41 A 56 C
12 D 27 D 42 D 57 A
13 C 28 C 43 B 58 D
14 D 29 C 44 C 59 A
15 C 30 D 45 D 60 B

QUESTION – FOREX
1) A person of Indian origin means (which is incorrect):
a) foreigner spouse of Indian citizen .

b)foreigner whose parents / grand parents are Indian
c) A citizen of Bangladesh or Pakistan who had Indian passport
d A foreigner who held Indian passport at any time.
2) As per FEMA notification No.13 dated 03.02.2000 Non-Resident Indian is a person

who?
a) stayed in India for 182 days

b) have been in India for 182 days during the previous year
c) have been in any country except India for 182 days during the previous calendar year
d) is a Citizen of India and residing outside India
e) any of the above
03) In respect of sale or purchase of foreign exchange, which among the following
principles (MAXIM) would be followed, when the rate is direct rate?
a )sell low
b) buy high
c) buy high sell low
d) sell high buy low
e) any of the above
04) Exchange rates where Indian currency is shown fluctuating and foreign currency as
fixed is:
a) selling rate
b) purchase rate
c) indirect rate
d) direct rate
e) cross rate
05) From bank's angle, when there is inflow of forex and out flow of rupees, these
transactions are called:
a) purchases
b) remittances
c) sales
d) a or b above
e) a and c

06) Which of the following rate does not match with transaction of sale or purchase:
a) Purchase of bill: Bills buying rate

B )Crystallisation of an overdue export bill: Bills buying
c) Payment of import bill - Bills selling rate
d) Encashment of foreign travellers' cheque: TC buying
07) Which of the following methods is applied for quoting the foreign exchange rates in
India?
a) Cross rates
b) Direct Rate
c) Indirect Rate -
d) Buying Rate
08) For transfer of amount from FCNR account to NRE account, which of the following rate
would be used:
a) TT selling rate
b) Bills selling rate
c) Bills buying rate
d) TT buying rate
9) State Bank opens a current account with Bank of America in Los Angles for its day to
day business transactions, in US dollars. Which of the following kinds of accounts, it will
be known for SBI?
a) Vostro Account
b) Nostro Account
c) Loro Account
d) Escrow Account
10) Which accounts are called 'your account with us':
a) Loro account
b) Vostro account
c) Nostro account
d) none of the above
11) Which feature of FCNR-B account is not correct:
a) it can be opened by NRI jointly with another NRI

b) it can be opened jointly with resident as F/S account only
c) source of funds can be inward remittance or transfer from NRE account.
d) minimum maturity period is 6 months and maximum 60 months

12) Which among following is the authority which prescribed UCPDC guidelines, applicable
for inland LCs:
a )Reserve Bank
b) Ministry of Commerce
c) FEDAI
d) DGFT
e) ICC Paris
13) An LC provides for allowing the exporter the advance at pre-shipment stage and also the
warehouse facility to the exporter. Which among the following is the classification of this
letter of credit?
a) Transferable letter of Credit

b) Stand by letter of credit
C) Red Clause letter of Credit
d) Green Clause letter of credit
14) In case of export of goods by ship, which of the following export declaration form is
given by the exporter where the Customs Office is has EDI facilities:
a) pp form
b) GR Form
c) Softex Form
d)Shipping Bill only
e) COD form
15) XOS is the statement which banks submit to RBI relating to __ and when:
a) transactions in currencies, HY Mar & Sep

b) import transactions, monthly
c) overdue export bills not realized, HY- Jun & Dec
d) declaration of source for imports.H'Y- Jun & Dec
16) Who is providing export refinance to banks in India:
a) ECGC
b) EXIM Bank
c) IMF
d) RBI
e) there is no such facility
17) It has been stated in an LC that in case of need, the exporter can transfer the letter of
credit in favour of any other party. Such LC can be categorised as:
a)back to back credit

b) transferable letter of credit
c)green clause letter of credit
d) red clause letter of credit

18) An LC does not state the quantity in terms of a stipulated number of packing units or
individual items. As per UCPDC, it can be varied with a tolerance of:
a)10% more
b) 10% less
c) 10% (+) or(-)
d) 5% (+) or(-)
19) Foreign Exchange Rates in India are determined by:
a) Finance Ministry
b) REI
c) FEDAI
d) Market demand/supply
e) Federal reserve of US
20) What is the CAP of Individual remittance under MTSS and number of remittance in a
calendar year
a) Rs.50000/- AND 2
b) USD 2500/- AND 30
C) Rs.9999/- and 1
21) As per RBI instructions What is the ceiling of cash payment to the customer under MTSS
Scheme
a) Upto Rs.9999/-
b) Upto Rs.50000/-
c) UPto Rs.5000/-
22) Limit for Loan against NRE/FCNR Deposits to be allowed to Depositor or third party
customers
a) USD 2.00 lacs

b) Rs.2.00 lacs
c) No ceiling prescribed
d) USD 25.00 lac
23) As per FEDAI rule “ KNOWN HOLIDAY” means
a) Which is known at least 3 working days before the date of a holiday

b) Ask to holiday immediately
c) Which is known to staff at least 1 working day

24) Foreign Exchange to be released for business travel to an Indian citizen not to exceed
a) USD 2000
b) USD 250000
c) USD 100000/-
d) USD 10000
25) Under liberalized remittance scheme of the bank find out of the maximum amount to be
remitted outside India:
a) USD 250000 per financial year

b) USD 1.00 lacs per financial year
c) limit to be specified as per FEMA guidelines purpose wise
d) No limit prescribed
26) Which exchange rate is applicable on a remittance of fee for USD 5000/- by a student
to a University in New Zealand.
a) TT selling rate for US Dollars

b) TT buying rate for New Zealand dollars
c) TT selling rate for New Zealand dollars
d) TT buying rate for US Dollars
27) The law permits carrying of Indian Rupees to Nepal/Bhutan:
a) Upto INR 1,00,000/- in any denomination

b) Upto INR 1,00,00,000/- in currency notes of Rs. 500/- or above
c) Upto INR 25000/- in currency notes of any denomination
d) Upto any amount in the shape of currency notes of Rs. 1000/-
28) How much interest is payable on EEFC accounts
a) Same as in the case of NRE accounts

b) No interest is payable
c) Same as in the case of FCNR accounts
d) Interest is charged from the customers as we safeguard their interest against
exchange fluctuation
29) As per FEDAI rules, the rupee value of all foreign exchange transactions should be
rounded off to-
a) Four decimal points

b) Two decimal points
c) One decimal point
d) Whole rupee

30) When a letter of credit does not indicate whether it is revocable or irrevocable, it is
treated as
a) Revocable
b) Irrevocable
c) It cannot be accepted
d) Revocable or Irrevocable at the discretion of the negotiating bank
31) World Travel Card of our bank can be issued in
a) Indian Rupees
b) GBP, Euro and USD
c) AUD,AED,SGD
d) All permitted currencies
32) The Central Banks and the Monetary Authorities of Bangladesh, Bhutan, India, Iran,
Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are the members of --------------
a) The Haj Committee

b) Asian Development Fund
c) Asian Clearing Union
d) OPEC
33) Exchange Earners Foreign Currency (EEFC) accounts be held jointly with a -resident
Indian, who is a close relative for operations by
a) Either or survivor
b) Former or survivor
c) It cannot be opened
d) Any of (a) or (b
34) Which of these accounts are maintained in INR
a) FCNR
b) EEFC
c) RFC
d) NRE
35) Indirect rate in foreign exchange means the rate quoted with
a) The rate quoted in terms of a third currency

b) the units of foreign currency kept fixed
c) The units of home currency kept fixed
36) Article 27 of UCP 600 says that a bank will only accept a clean transport document. A
clean transport document is
a) The one bearing the word “clean”

b) The one bearing the words “clean on board”
c) one bearing no clause or notation expressly declaring a defective condition of the
goods or their packaging

37) Certificate of origin indicates
a) The Country of shipment of goods

b) The place of manufacture/production of goods
c) The country of manufacture/production of goods
d) Whether the product belong to plant or animal kingdom
38) In which type of Letter of Credits, pre-shipment credit is offered:
a) Only Red-clause letter of credit

b) Only Green -clause letter of credit
c) Both ‘A’ & ‘B’
d) None of them
39) For export of software in non-physical form, the declaration form is
a) GR
b) PP
c) SOFTEX
d) SDF
40) An LC has been received in favor of exporter, which allows exporter advance at
preshipment stage and also for warehouse facility. What is the classification of this
LC?
a) Red clause letter of credit

b) Black clause letter of credit
c) Yellow clause letter of credit
d) Green clause letter of credit
41) If a foreign currency is at a premium it is
a) Beneficial to exporter
b) Beneficial to Importer
c) Beneficial to both
d) It makes no difference
42) An NRI approaches your branch to open public provident fund account (PPF) you will ?
a) Open
b) Cannot open
c) Open with permission of CO
d) Open with permission of IBD,HO
43) Advance remittance without bank guarantee for import of goods upto ______:
a) USD 500000
b) USD 200000
c) USD 1000000
d) USD 100000

44) Form A-2 is to be used in respect of remittance applications for miscellaneous non-
trade current account transactions of value exceeding
a) USD 5,000
b) USD 500
c) USD 25000
d) USD 50000
45) Movement of goods are controlled through
a) Credit Policy
b) Exchange Control Manual
c) RBI Circulars
d) Foreign Trade Policy
46) IE Code No. is allotted by
a) RBI ECD
b) State Govt.
c) DGFT/JDGFT
d) Export Promotion Council
47) An advance payment of USD 100,000 is received . It will be converted by applying
a) TT buying rate
b) Bills buying rate
c) TT selling rate
d) Bills selling rate
48) Which of the following is not a shipping document?
a) Bill of exchange
b) Certificate of Origin
c) Consular Invoice
d) EDF Form
49) Unused foreign currency & traveler's cheques by individuals are to be surrendered within
how many days of return?
a) Currency notes within 90 days and TC's within 180 days of return.
b) Both within 90 days
c) Both within 180 days
d) Both within 360 days
50) Limit for direct receipt of import bills :
a) USD 500,000
b) USD 50,000
c) USD 300,000.
d) USD 100,000

51) To qualify the status of 5 star export house status export performance FOB/FOR during
the current and previous two years should be :
a) USD 500 million

b) USD 2000 million
c) USD 50 million
d) USD 100 Million
52) To qualify the status of four star export house status export performance FOB/FOR
during the current and previous two years should be :
a) USD 500 million

b) USD 2000 million
c) USD 50 million
d) USD 100 Million
53) To qualify the status of One star export house status export performance FOB/FOR
during the current and previous two years should be :
a) USD 3 million
b) USD 2000 million
c) USD 50 million
d) USD 100 Million
54) Which of the following exports values are permitted for exemption to be declared by the
exporter through EDF/SOFTEX form :
a) Goods / software for value less than Rs.25000/-

b) Gift of goods for value less than Rs.1.00 lac
c) Goods imported free of cost on re-export basis
d) All of the above
55) EDF waiver is permitted by authorized dealers for the export made by the exports.
Which of the following is correct:
a) Goods for export promotion upto 2% of average export of previous 3 yeears

b) maximum amount ceiling of EDF waiver Rs.5.00 lacs
c) For status holders 2% of average export maximum 10 lacs
d) All of the above
56) Realization of export proceeds in respect of all exports inclusive of status holder, EOU
should be within _______ months from the date of export:
a) 12 months
b) 9 months
c) 6 months
d) 24 months

57) Realization of export proceeds in respect of all exports made to warehouses
established outside India should be within _______ months from the date of export:
a) 18 months
b) 21 months
c) 15 months
d) 24 months
58) Where an exporter receives advance payment he is under an obligation to make

shipment within one year of advance and Rate of interest if any payable on advance
payment should not exceed :
a) LIBOR
b) LIBOR + 200 basis points
c) LIBOR + 100 basis points
d) Domestic interest rate on clean advance converted at TT selling rate
59) Where usance exports bills are required to be paid before the due date and overseas
buyer requested for cash discount by way of reduction from invoice value. How much
amount AD can allow as reduction in invoice value:
a) Proportionate interest on expired period calculated on ROI in contract /LIBOR/

Prime rate
b) Proportionate interest on expired period calculated @ 6%
c) Proportionate interest on expired period calculated on ROI of pre-shipment
credit
d) Proportionate interest on expired period calculated on Post shipment credit
60) If a export bill negotiated or sent on collection basis and amount is to be reduced for any
reason. Which of the following is correct ?
a) Maximum reduction allowed up to 25% of the invoice value

b) Without any %age ceiling if he is export business for last 3 years
c) a or b if track record is satisfactory and export o/s do not exceed 5% of average
annual export realization during the preceding 3 years
d) All of the above
61) Up to what extent export bills outstanding for more than one year, are to be self written
off in case of other than status holder exporter
a) 5% of the total export proceeds realized during previous calendar year

b) 10% of the total export proceeds realized during previous financial year
c) a or b whichever is lower
62) The extent up to which export bills outstanding for more than one year, are to be self
written off in case of status holder exporter
a) 10% of the total export proceeds realized during previous financial year
b) 5% of the total export proceeds realized during previous calendar year
c) 10% of the total export proceeds realized during previous calendar year

63) The extent up to Authorised dealers can allow write off overdue export outstanding for
more than one year
a) 5% of the total export proceeds realized during previous financial year

b) 5% of the total export proceeds realized during previous calendar year
c) 10% of the total export proceeds realized during previous calendar year
64) Evidence of Import i.e. Custom certified copy of bill of entry is required to be submitted to
the authorized dealer who has permitted remittance where value of import exceeds:
a) USD 100000
b) USD 50000
C) USD 150000
D) BEF not required in any case
65) Not being an Individual who has acquired or purchased foreign exchange does not use
it shall surrender such foreign exchange or the unused portion thereof to an authorised
person within a period of
a) 180 days
b) 90 days
c) 30 days
d) 60 days

ANSWERS - FOREX
1 C 23 A 45 D
2 D 24 B 46 C
3 C 25 A 47 A
4 D 26 A 48 A
5 A 27 C 49 C
6 B 28 B 50 C
7 B 29 D 51 B
8 D 30 B 52 A
9 B 31 B 53 A
10 B 32 C 54 D
11 D 33 B 55 D
12 E 34 D 56 B
13 D 35 C 57 C
14 D 36 C 58 C
15 C 37 C 59 A
16 D 38 C 60 A
17 B 39 C 61 A
18 D 40 D 62 C
19 D 41 A 63 C
20 B 42 B 64 A
21 B 43 D 65 D
22 C 44 C
Reader’s Inputs are Important for me,
Rajesh Sharma,
Sharma Senior Faculty
ZTC Dehradun

Multiple Choice Questions - 2016 Promotion

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Question Bank on Credit Management & Risk Policy for the year 2016 – 17

KNOWLEDGE the State

SL. CONTENTS PAGE NO.

ZTC Dehradun Page 2

2. HOCAC Level – II is headed by which of the following official:

6. Claims on the accounts guaranteed by RBI/DICGC/CGTMSE/CRGFTLIH is assigned __ risk

7. Claims on the accounts guaranteed by ECGC is assigned __ risk weight

ZTC Dehradun Page 3

9. Claims on the other banks having CRAR of 9% is assigned __ risk weight

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22. Outstanding in credit card receivable will be assigned __ risk weight

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a. Circle Head (CM/AGM)

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45. The renewal proposals pertaining to NBFCs can be considered by

46. The powers vested with Incumbents of LCBs/Circle Head (DGM/GM/COCAC),

49. The adhoc facility to NBFCs may be allowed by GM (HO)/FGMCAC/HOCAC-I upto__ % of

ZTC Dehradun Page 9

ZTC Dehradun Page 10

60. A MSME entrepreneur will said to have become sick if

a. If any of loan account remains NPA for 3 months or more

63. Which day will be treated as micro lending day at branches

a. Any one day in a week

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a. Loans upto a limit of Rs.50000/-

a. Loans upto a limit of Rs.50000/-

a. Loans upto a limit of Rs.50000/-

ZTC Dehradun Page 14

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a. Base rate basis

98. Half yearly review of credit risk rating is applicable in case of

a. Listed Companies rated on large / mid corporate rating models

ZTC Dehradun Page 16

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a. 50% of bank’s gross advances

ZTC Dehradun Page 19

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a. Concurrent Auditor /chartered accountant

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135. Risk weight assigned to the foreign sovereigns is:

138. Risk weight in case of capital market exposure would be ____

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a. Upto Rs. 2 lakh 2 weeks

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a. Account shows signs of incipient stress

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a. Infrastructure advances, if secured by pledge of promoters‟ shares in the SPV of an

a. 10% & Above

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a. Limit of 2 lakhs & below

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a. 5 crores & above

a. Rs.100 crore & above

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a. Outstanding Balance in the Loan Account

a. 30% of the paid-up share capital of the company

a. Incumbent Incharge of Small/Medium/ Large Branch/VLB