Front Cover Page

DISCLAIMER
“Even though we have taken best efforts to incorporate the latest
guidelines, we advise users to refer to Book of Instructions/
circulars issued from time to time and be guided accordingly in the
discharge of their duties. Errors, if any, may be brought to our
notice so that they can be corrected in the subsequent editions”.

Quotes
If you really look closely, most overnight successes took a
long time.

-- Steve Jobs

The way to get started is to quit talking and begin doing.

-- Walt Disney

I never dreamed about success; I worked for it

--Winston Churchill

“None can destroy iron, but its rust can. Likewise, none can
destroy a person, but his own mindset can.”

--Ratan Tata

Believe in yourself and the world will be at your feet.

--Vivekanada

The Making of “1000+ MCQs” guide could not have been possible
without the efforts and cooperation of all faculty members of staff
college and 12 STCs. Their Participation are sincerely appreciated and
gratefully acknowledged. Wishing good luck and All the Best to the
Promotion Aspirants.
Team
 INDEX
S.no Topic Page No

Module A - General Banking

1. KYC/AML, General Banking, Nomination, Claim Settlement,
1
Customer Service, DICGC
2. Garnishee Order, Attachment Order, Detection of Counterfeit
11
Notes, Inter-Branch CBS Transactions, Compensation Policy
3. OCAS, Documents handling & Retention Policy, Income Tax Act,
TDS, GST, Significant accounting policies, Security arrangement, 16
Mandate Management System, FCRA 2010
4.
BANKING OMBUDSMAN 21

Module B - Deposit
5.
SB, Current account and Deposit Accounts 23

Module C - Advances
6.
LOAN POLICY DOCUMENT 29
7.
Delegation of Financial powers 32
8. Balance sheet component and Ratio Analysis Working Capital, Term
34
Loan Analysis, Documentation
9.
RETAIL CREDIT 41
10.
Agriculture Credit 44
11.
Government Sponsored Schemes 47
12.
MSME 50
13.
Credit Guarantee Schemes 53
14.
ROC, Financial Inclusion BC Management, BG, Valuation Policy 59

Module D – Credit Monitoring

15.
Credit Monitoring & Inspection 63

Module E – NPA & Recovery

16.
Recovery Policy 67
17.
Prudential Accounting Norms- Advances 69
18.
Restructuring of Advances 72
19. Framework for Revival and Rehabilitation of Micro, Small and
75
Medium Enterprises (MSMEs)
20.
SARFAESI ACT, 2002 78
21. Resolution Frame Work For Corporate And MSME Due To Covid-19
84
Related Stress

Module F - Forex
22.
Foreign Exchange 87

Module G – Treasury Operation & Risk Management

23.
Treasury Operation & Risk Management 90

Module H – Para Banking

24.
Para Banking and Fee based Income 115

Module I – Digital Banking

25.
Digital Banking 119
26.
BC/BF 125

Module J - Misc.
27. PSBs-Reforms Agenda-EASE-Enhanced Access And Service
127
Excellence.
28. Pension Account Maintenance, Agency Commission &
130
Miscellaneous.
29.
Staff Accountability Policy 136
30.
Companies Act 2013 141

Module K - IMP POLICIES, CIRCULAR,

SCHEME &RBI CIRCULARS ISSUED IN 2021-22
31.
IOB Policies/Imp Circulars Launched in 2021-22 145
 Module A - General Banking
KYC/AML, General Banking, Nomination, Claim Settlement, Customer
Service, DICGC

1. The RBI can impose monetary penalty for c) Digital KYC

non-compliance with certain provisions of d) Digital document
directions issued by RBI on Know Your 6. Capturing live photo of the customer and
Customer (KYC) norms / Anti Money OVD, along with the latitude & longitude of
Laundering (AML) Standards and Opening the location where such live photo is being
of Current Accounts under the provisions taken by an authorized officer of the Bank
of: is called?
a) Section 47A(1)(c) read with Section a) Sahayak
46(4)(i) of the Banking Regulation Act, b) Digital KYC
1949 c) V-CIP
b) Section 47A(1)(c) read with Section d) Tablet Banking
46(4)(i) of the RBI Act, 1934 7. What level of risk perception is assigned to
c) Section 45A(1)(c) read with Section Blind & Pardanashin women?
46(4)(i) of the Banking Regulation Act, a) High Risk
1949 b) Medium Risk
d) Section 45A(1)(c) read with Section c) Low Risk
46(4)(i) of the RBI Act, 1934 d) Account cannot be opened
2. RBI issues KYC/AML/CFT guidelines under 8. Which of the following is not a Low level
a) Section 35A of RBI Act, 1934 risk account?
b) Section 35A of Banking Regulation Act, a) Salaried employees
1949 b) People belonging to lower economic
c) Section 47A of RBI Act, 1934 strata of the society
d) Section 47A of Banking Regulation Act, c) Retail Shops
1949 d) Government Departments, and
3. FATCA stands for? Government owned Companies
a) Foreign Account Tax Compliance Act e) NPOs / NGOs promoted by United
b) Foreign Account Trust Compliance Act Nations or its Agencies
c) Foreign Account Tax Contribution Act 9. REKYC for high risk customers shall be
d) Foreign Account Trust Contribution Act conducted once in _____ years?
e) None of these A. Two
4. Which of the following is an alternate B. Three
method of customer identification and CDD C. Five
by an official of the bank by undertaking D. Eight
seamless, secure, live, informed consent E. Ten
based audio-visual interaction with the 10. Utility bill which is not more than ______
customer? months old of any service provider shall be
a) M – CIP considered as deemed to OVD.
b) V – CIP a) Two
c) M – CDD b) Three
d) V – CDD c) Six
e) E - CIP d) Twelve
5. What is an electronic equivalent of a e) Ten
document issued by its issuer with valid 11. If a Proprietorship concern is not able to
digital signature including document issued provide valid documents for opening an
to the digital locker account? account, you can open an account by
a) Equivalent E-documents obtaining preparing the following:
b) Digilock a) Unit Visit Verification Report

1
 b) Declaration from the proprietor c) Three
c) Unit Verification Visit Report d) Six
d) Account cannot be opened, valid e) Twelve
document is required 19. How much charges to be debited to
12. In Cash Transaction Report, entries below customer account for the inquiry done in
Rs. ________need not be reported: iSCAN during current account opening?
a) Rs.10,00,000/- A. 100 + GST for individuals
b) Rs. 9,99,999/- B. 800 + GST for firms/entities
c) Rs. 49,999/- C. Both a) and b)
d) Rs. 50,000/-
D. No charges to be debited
e) None of these
13. Second Line official of the branch should 20. Under current account – Need for
submit KYC compliance certificate to First discipline, all CC/OD accounts, exposure to
Line Manager of the branch by every be monitored at __________ intervals by
___________: ____________ for accounts sanctioned
a) Week under branch powers.
b) Bi-monthly a) Quarterly; Regional Office
c) Month by 5th of succeeding month b) Quarterly: Branch
d) Month by 10th of succeeding month c) Half-yearly; Central Office
14. For which CKYCR is to be done? d) Half- yearly; Regional Office
a) Foreign Portfolio Investors 21. If the exposure from the banking system in
b) Self Help Groups the form of CC/OD is Rs.5 Cr or more, then
c) Joint Liability Groups such borrower can maintain current
d) Limited Liability Companies accounts with any one of the banks with
15. What is banker-customer relationship with which it has CC/OD facility, provided that
respect of accepting money for issuing the bank has at least ____ per cent of
draft (before draft is issued) exposure of the banking system of that
a) Agent – Principal borrower.
b) Debtor – Creditor a) 5
c) Trustee- Beneficiary b) 10
d) Creditor – Debtor c) 15
16. What is banker-customer relationship with d) 20
respect of Draft tendered to applicant, but e) 25
before it passes on to the hands of 22. If the exposure from the banking system is
beneficiary Rs.50 Cr and above, then which of the
A. Agent – Principal following is correct with respect to opening
B. Debtor – Creditor of current account?
C. Trustee- Beneficiary Escrow to be opened by managing bank
D. Creditor – Debtor Collection account shall be opened lending
17. What is banker-customer relationship with banks subject to debits in these
respect of Draft tendered by payee (with account shall be limited to the purpose
the payee of DD) of remitting proceeds to the said
A. Agent – Principal escrow accounts.
B. Debtor – Creditor Balances in maintained in collection
C. Trustee- Beneficiary accounts shall not be used as margin
D. Creditor – Debtor for availing any non-fund based credit
18. If Power of Attorney is executed outside facilities.
India, it should be executed before High Non Lending Bank shall not open any
Commissioner in Indian Embassy and current account.
should be stamped in India within All of the above
________ months of its receipt. 23. RBI has permitted banks to open specific
a) One current accounts which are stipulated
b) Two under various statues and instructions of
the other regulators/regulatory

2
 department, without any restrictions. expired on Jan 20
Which of the following accounts does not A. Both the cheques will be returned
come under an indicative list of such B. Both the cheques will be paid
accounts? C. Cheque dated Jan 12 will be paid and
a) Accounts for settlement of dues cheque dated Jan 24 will be retuned
related to debit card/ATM card/Credit D. Cheque dated Jan 12 will be returned
card issuers/acquires and cheque dated Jan 24 will be paid
Accounts permitted under FEMA,1999 E. None of these
Accounts of White Label ATM operators 28. In partnership firm, a minor is admitted for
and their agents for sourcing of benefits and he attains majority and
currency. decides to be a partner. His liability in this
Accounts opened for Limited Liability case shall begin from:
companies A. The date when he was admitted for
Accounts attached by orders of Central or benefits
State governments/regulatory B. The date of majority
body/Courts/investing agencies etc. C. The date when he decided to become
wherein the customer cannot partner
undertake any discretionary debits. D. The date when he actually became full
24. Current account can be opened for a fledged partner
company by any bank where the loan E. From the date of commencement of
exposure of banking system is up to Rs. partnership firm
_______ ? 29. The paying banker gets protection under
A. Rs. 5 Cr or less Section 85 of NI act provided the:
B. Less than Rs.5 Cr A. Payment is a payment in due course in
C. Rs.1 Cr and above good faith and without negligence
D. Less than Rs.1 Cr B. Payment is made as per the apparent
E. None of the above tenor of the instrument
25. If nothing is stated about the validity, an C. Applicable to both order and bearer
cheque is considered to be valid for: cheques
A. 3 months D. All of the above.
B. 4 months 30. When a cheque is wrongfully dishonored
C. 6 months by the paying bank, it is liable to the:
D. 12 months A. Drawer
E. Time mentioned on the cheque B. Payee
26. There is credit balance of Rs.5000 in the C. Holder
account of a saving bank deposit holder. D. None of these
Three cheques with amount of Rs.1900, 31. Can the banker pay a cheque when the
Rs.1800 and Rs.1700 are presented balance in the account is just sufficient to
simultaneously. You will pay the cheques pay that cheque?
with amount of Rs.: A. The cheque has to be returned
A. Rs.1900 only B. The cheque can be paid and service
B. Rs.1700 only charges recovered for not maintaining
C. Rs.1800 only sufficient balance
D. Rs.1900 and Rs.1800 to discharge C. The cheque can be paid after obtaining
maximum liability confirmation from the drawer
E. All cheques shall be returned by D. None of these
treating them as one drawing 32. Payment in due course is defined in Section
27. Two cheques of Rs.10249 dated Jan 12 and ______ of NI act
Rs.12340 dated Jan 24, signed by a Director A. 10
of XYZ Ltd., the Authorised signatory have B. 9
been presented for payment on Jan 27. C. 8
Meanwhile bank has informed by the D. None of these
company that concerned Director has

3
33. A cheque bearing an impossible date says 39. A Cheque payable to X without mentioning
31.06.2010 is presented for payment. the words order or bearer is presented for
Which of the following is correct? payment. What should be banker do?
A. If the cheque is presented for payment A. Return the cheque requesting the
on or after 30.06.2010, it should be drawer to specify the words order or
paid bearer
B. Return the cheque with remarks B. Pay the cheque treating it as on order
“Cheque contains impossible date” cheque and after proper identification
C. Pay the cheque after obtaining of the payee.
confirmation from the payee C. Pay the cheque treating it as bearer
D. None of these cheque
34. Can the banker pay a cheque bearing a date D. None of these
prior to the date of opening of the account? 40. How many OVD are there?
A. It cannot be paid as there was no privity A. 5
of contract on the date of issue of the B. 6
cheque C. 8
B. Pay the cheque as the date of D. 7
presentation is the decisive factor and 41. Which of the following is an OVD?
not the date of issue A. PAN Card
C. None of the above B. Ration Card
35. Can the banker pay a cheque signed by the C. National Population Register
Power of Attorney holder bearing a date D. None of these
prior to the date of issue of Power of 42. What is the maximum STTL limit in case of
Attorney? Corporate RIP category?
A. Yes, it can be paid A. Rs. 4 lacs
B. No it cannot be paid B. Rs.25 Lacs
C. None of these C. Rs. 33 Lacs
36. A cheque becomes stale after 3 months (as D. Rs. 50 Lacs
per RBI direction) from the date of issue. It E. Depend on Turnover of the firm
is provided in: 43. A guardian appointed by court on basis of
A. NI Act will is known as
B. RBI Act A. Legal Guardian
C. Not provided anywhere. It is only an B. Legal Representative
established practice based on RBI C. Testamentary Guardian
direction D. Probate
D. None of these 44. There is one RDP in name of Suresh &
37. Can the banker pay a post-dated cheque? Ramesh with joint operation clause.
A. Yes, provided sufficient balance is Nominee is Mr. Naresh, in case Mr. Suresh
there in the account dies, who will get the maturity amount
B. No as it will not be a payment in due A. Ramesh & Naresh
course B. Ramesh only
C. None of these C. Legal heir of Suresh & Ramesh jointly
38. A Cheque is presented for payment by an D. Legal heirs of Suresh, Ramesh, Naresh
insolvent payee. Can the banker pay the all together
cheque? 45. Whenever the claim amount of excess of
A. The cheque can be paid as the Rs. _________ payment should be made to
insolvent is competent to receive the nominee by Demand draft/account
payment credit of the nominee.
B. The cheque cannot be paid as the true A. 10000
owner is the Official Receiver B. 20000
C. The cheque can be paid after drawer’s C. 25000
confirmation D. 49000
D. None of these E. 50000

4
46. Banking is defined under and the bank officials.
A. Sec 5b of RBI Act B. legal heirs, two independent witnesses
B. Sec 5b of BR act and the police officials.
C. Sec 15c of RBI act C. legal heirs, one independent witnesses
D. Sec 46Z of Indian Contract act and the court officials.
47. 47. CKYC was introduced W.e.f D. legal heirs, one independent witnesses
A. 01.04.2017 and the bank officials.
B. 31.03.2017 53. For claims relating to articles in safe
C. 01.01.2017 custody/safe deposit locker and pledged
D. 01.01.2016 jewels, branch to collect all the papers as
48. Settlement of claims to done within per "Claims without Nomination/Legal
__________ days from date of receipt of all Representation” but the Indemnity should
documents prescribed by Bank, where be taken as per Annexure _____ instead of
claim is supported by Annexure-E.
Nomination/Survivorship. A. Annexure K
A. 14 B. Annexure L
B. 15 C. Annexure H
C. 30 D. Annexure J
D. 60 54. Which among the following is not correct
E. 10 for ‘Small Account’?
49. Claims up to the threshold limit of Rs. A. Balance at any time does not exceed Rs
_________ fixed by our bank will be settled 50,000/-
against indemnity of the legal heirs i.e., B. Total withdrawal may permit in a
without 3rd party sureties. month up to Rs 25,000/-
A. Rs. 50000/-
C. Total Credit in a financial year does not
B. Rs.75000/-
exceed Rs 1 lakh
C. Rs.1,00,000/-
D. Rs.2,00,000/- D. All the above
E. None of these E. None of the above
50. In respect of missing persons, the 55. __________ refers to the reinjection of the
presumption of death can b e raised after laundered proceeds back into the economy
a lapse of ________ years from the date in such a way that they renter the financial
of his/her being reported missing. system as normal business funds?
A. Eight a) Placement
B. Seven Layering
C. Six Integration
D. Ten Smurfing
E. Five None of the above
51. For claims with nomination, the Nominee is 56. What is the cut off limit beyond which all
required to submit: (a) Copy of Identity and the suspicious transactions are to be
address proof (b) Proof of death of reported?
depositor/locker hirer (c) Receipt as per a) Rs. 10 lakhs and above
annexure ____: b) More than Rs. 10 lakhs
A. Annexure L c) More than Rs. 5 lakhs
B. Annexure K d) More than Rs. 1 lakh
C. Annexure J e) No such limit
D. Annexure H 57. What is the EDD related to KYC and AML?
52. Claim without production of legal a) Emergency due diligence
representation an Inventory of the articles Education loan due diligence
in Safe Custody and Safe Deposit Lockers Enhanced Domestic diligence
should be made by the Manager in the Enhanced due diligence
presence of: Enforcement Director Department
A. legal heirs, two independent witnesses 58. CKYC number is how many digit?

5
 A. 10 digit A. Holder in Due Course
B. 14 digit B. Holder
C. 12 digit C. Drawer
D. 21 digit D. Drawee
E. 15 digit E. None of These
59. As per RBI policy, which one of the 65. Punishment under the section 138 is with
following cannot verify OVDs of NRI/PIO imprisonment for a term up to …………... or
A. Indian Embassy/Consulate General in with fine which may extend to ………. the
amount of the cheque or with both.
the country where the nonresident
customer resides
A. 2years, Twice
B. 1 Year, Twice
B. Notary Public abroad
C. 6 Months, Twice
C. Official of any overseas bank
D. 3 Months, 1.5 Times
D. Court Magistrate
E. None of These
E. Both c & d
66. Thumb impression of the account holder is
60. Format of Cheque is defined under ___? required to be attested by how many
A. Section 6 of NI act witness?
B. Section 13 of NI act A. One
C. Section 7 of NI act B. Two
D. Section 5 of NI act C. Three
E. CTS-2010 standard D. No witness required
61. What is the amount above which the E. Four
instrument should pass UV test before 67. Wherever thumb or toe impression of the
lodging? sick/old/incapacitated account holder is
obtained, it should be identified by ----------
a) 1 lakh and above all cheques
-- witnesses known to the bank, one of
Above 1 lakh all cheques
whom should be a responsible bank
Above 2 lakhs all cheques
official?
2 lakhs and above all cheques
A. 1
All cheques irrespective of the amount
62. Section 25 of _____ accords the rights and B. 2
remedies to the payee (beneficiary) against C. 3
dishonor of electronic funds transfer D. No witness required
instruction under insufficient of funds. E. Only bank officer need to attest.
A. Banking Regulation act 68. Under SPGRS what is the time limit for
B. RBI act redressal of complain related to Deficiency
in normal banking service?
C. Payment & settlement act
A. 30
D. NI act B. <=30
E. None of the above C. <=7
63. When the endorser signs only his name on D. <=15
the back of the instrument, it is termed as E. 7
a ………. endorsement.
69. Under SPGRS what is the time limit for
A. Blank redressal of complain related to Staff
B. Restrictive attitude deficiency?
C. Partial A. 30
D. Special B. <=30
E. None of These C. <=7
64. Possession of the negotiable instrument is D. <=15
essential to be…………….... E. 10

6
70. Under SPGRS what is the time limit for 76. Up to what amount loan can be granted
redressal of complain related to ATM against minor’s deposit to natural guardian
transaction complains? A. 50000
A. 30 B. 20000
B. <=30 C. 25000
C. <=7 D. No limit
D. <=15 77. Can an illiterate paradanshin lady open an
E. 10 account
71. Under other channels except SPGRS what is A. Yes
the time limit for redressal of complain B. No
related to Deficiency in normal banking C. Yes, if thumb impression is attested by
service and Staff attitude deficiency? husband
A. 30 D. With the permission from regional
B. <=30 office
C. <=7 78. Under Mohammedan law, minor’s
D. <=15 guardian after the death of father may be
E. <=10 A. Father’s father
72. A person appointed by the Will of the dead B. Mother
person is called-----------. C. Uncle
A. Attorney D. Cousin Brother
B. Administrator 79. Can HUF become a partner in a partnership
firm?
C. Official assignee
A. Yes
D. Trustee
B. No
E. Executor
C. With permission from regional office
73. A person appointed by the court when no
D. If Karta and all major coparcener are
one named in the will of dead person is
willing to sign
called-----------?
80. Transferring of inoperative accounts will be
A. Administrator
done by the system
B. Attorney A. 31st march of every year
C. Official assignee B. 31st December of every year
D. Trustee C. 10th of March every year
E. Executor D. 15th of January every year
74. What is the name of the channel for 81. …… years since last transactions in it by the
Grievance received through public customer are classified for transfer to
grievance portal of ministries of Govt of unclaimed Balances account
India through DFS? A. 8 years
A. SPGRS B. 5 years
B. RBI-BO C. 3 years
C. CPGRAMS D. 10 years
D. INGRAMS 82. The Demand Drafts which are outstanding
E. RBI-CEPD/CEPC (i.e. remaining unclaimed) for …. years or
75. What is the name of the channel for more are to be classified as unclaimed
Grievance received through complain balance
management portal of ministry of A. 5 years
consumer affairs? B. 8 years
A. SPGRS C. 3 years
B. RBI-BO D. 10 years
C. CPGRAMS 83. Excess Cash unclaimed for more than -------
D. INGRAMS --shall be transferred to Unclaimed
E. RBI-CEPD/CEPC Balances Account maintained at Central

7
 Office every half year during March and C. Deposit Insurance and claim
September guarantee coverage
A. 6 months D. Deposit insurance and credit
B. 1 year guarantee corporation
C. 3 months 90. What is the maximum amount that is
D. 2 years covered under DICGC?
84. All items (except clearing adjustment) lying A. 10 lakhs
in sundry creditors for …… years or more B. 3 lakhs
are to be classified as unclaimed balances C. 5lakhs
A. 06 months D. 8 lakhs
B. 1 year 91. What is the insurance premium for every
C. 2 years INR 100 towards DICGC premium?
D. 3 years A. 10 paise half yearly
85. Where refund has been claimed from the B. 5 paise half yearly
Fund, banks shall preserve C. 50 paise yearly
records/documents in respect of such D. 50 paise half yearly
accounts and transactions, for a period of 92. What is the penal interest that is charged
at least ……. years from the date of refund for delay in premium payment?
from the Fund A. Bank rate + 8% P.A
A. Two years B. Bank rate + 5% P.A
B. One year C. 5% Simple interest P.A
C. Three years D. 7% Simple interest P.A
D. Five years 93. Maximum time frame within which DICGC
86. What is the limitation period for claiming needs to settle the claims of the depositors
back the amount from unclaimed balance A. Within six months from the date of
account? receipt of the claim list from the
A. 5 years liquidator
B. 10 years B. Within five months from the date of
C. No limitation period receipt of the claim list from the
D. 12 years liquidator
87. DEAF is established under --------act C. Within twelve months from the date
A. RBI of receipt of the claim list from the
B. BR liquidator
C. NI D. Within two months from the date of
D. Companies receipt of the claim list from the
E. Indian contract act liquidator
88. What is the rate of interest payable on 94. Which of the following is/are correct about
unclaimed deposit amount transferred to DICGC Insurance Coverage?
DEAF? A. Each Depositor is insured up to 5 lakhs
A. Bank rate for principal or interest in same right
B. 3% simple interest per annum and capacity in a particular bank
C. Fixed deposit interest rate prevailing B. DICGC insures all deposits such as
at the time of trf to DEAF savings, fixed, current, recurring, etc.
D. 5% simple interest per annum C. Joint account of depositor X and Y are
different form depositor Y and X
89. Expand DICGC D. All A, B, C are correct
A. Deposit insurance and claim 95. Which one is not correct in case of DICGC?
guarantee corporation A. Banks have the right to set off their dues
B. Deposit interest and corporate from the amount of deposits and
guarantee company insurance premium is borne entirely by
the insured

8
 B. Deposit Education Awareness Fund 101. Complaint can be made by the
(DEAF) are included for payment of customer to Ombudsman within ____ from
DICGC premium the date of receipt of unsatisfactory reply
C. insurance coverage limit is applied from bank and within _____ if not receive
separately to the deposits having any reply from the bank to his
deposits with different bank representation.
D. DICGC is liable to pay to each depositor A. 01 Year, 01 year & 01 month
through the liquidator, the eligible B. 01 Year, 02 year & 01 month
amount within two months from the C. 02 Years, 01 year & 02 months
date of receipt of claim list D. 03 months, 01 year 06 months
96. As per RTI act who has been designated as 102. Banking Ombudsman may pass an
CPIO in our bank award as compensation for any loss
A. DGM Law Dept. suffered by the complainant is limited to
B. DGM RO the amount arising directly out of the act or
omission of the bank or Rs ______,
C. GM Inspection
whichever is lower and ______ for mental
D. AGM Law department
agony and harassment.
97. What is the maximum time frame within A. 20 lakhs, 02 lakh
which information sought is to be provided
B. 10 lakhs, 02 lakh
or rejected?
C. 20 lakhs, 01 lakh
A. 30 days
D. 10 lakhs, fifty thousand
B. 60 days
103. Bank aggrieved by an Award or closure
C. 90 days
of a complaint or The complainant
D. 15 days
aggrieved by an award or rejection of a
98. Who is designated as the appellate complaint may prefer appeal within …….
authority under RTI in our bank Days of receipt of communication of the
A. GM Law Dept. award or of the date of receipt of the
B. GM Inspection award.
C. ED a) 90 days b)60 days
D. GM PAD c) 30 days d) 15 days
99. Which one is incorrect in case for 104. Integrated ombudsman scheme has
applicable fee under RTI Act? done away with the jurisdictions of each
A. Application fee is Rs 10 only ombudsman office and centralised receipt
B. Rs. 2 for each page (in A4 or A3 size and processing centre has been set up by
paper) and actual cost for larger sized RBI in
paper for furnishing the information a) Mumbai b) Delhi
C. For inspection of records, no fee for c) Haryana d) Chandigarh
the first hour, and a fee of Rs. 5 for 105. As per IO scheme, a complaint under
each fifteen minutes (or fraction the scheme will not lie unless
thereof) thereafter A. the complaint is not abusive or frivolous
D. Charges should be levied even if the or vexatious in nature
information is not provided within the B. pending before any Court, Tribunal or
time limit and fee should be applicable Arbitrator or any other Forum or
to BPL customer also. Authority; or, settled or dealt with on
100. Who is the appellate authority under merits, by any Court
the Integrated ombudsman scheme? C. the complaint was rejected wholly or
A. GM of RBI partly by Bank, and the complainant is
B. CGM of RBI not satisfied with the reply; or the
C. Executive Director-in charge of complainant had not received any reply
Consumer Education and Protection within 30 days after Bank received the
Department complaint
D. CGM customer service D. All the above

9
Answers:

Q NO ANS Q NO ANS Q NO ANS Q NO ANS Q NO ANS

1 A 26 D 51 A 76 B 101 A
2 B 27 C 52 A 77 B 102 C
3 A 28 A 53 A 78 A 103 C
4 B 29 D 54 B 79 B 104 D
5 A 30 A 55 C 80 C 105 D
6 B 31 B 56 E 81 A
7 B 32 A 57 D 82 C
8 C 33 A 58 B 83 A
9 A 34 B 59 D 84 D
10 A 35 B 60 E 85 D
11 A 36 C 61 D 86 C
12 D 37 B 62 C 87 B
13 A 38 B 63 A 88 B
14 D 39 B 64 A 89 D
15 A 40 B 65 A 90 C
16 B 41 C 66 B 91 B
17 C 42 D 67 B 92 A
18 C 43 C 68 B 93 D
19 D 44 C 69 C 94 D
20 A 45 B 70 C 95 B
21 B 46 B 71 E 96 A
22 E 47 C 72 E 97 A
23 D 48 B 73 A 98 A
24 B 49 C 74 C 99 D
25 A 50 B 75 D 100 C

10
 Garnishee Order, Attachment Order, Detection of Counterfeit Notes, Inter-
Branch CBS Transactions, Compensation Policy

1) Which of the following is/ are correct for b) Exchange of soiled notes c) Exchange of
garnishee order? mutilated notes
a) Issued by court under CPC 1908 and is issued d) Exchange of brittle and burnt notes
in two stages e) All are correct
b) Judgment creditor is who initiate 6. How many notes and up to what value of
garnishment action soiled notes can be exchanged over the counter
c) Judgment debtor is who owes the money of Bank Branch?
a) 20 notes up to value of Rs.5000
d) Bank is garnishee
b) 10 notes up to value of Rs.5000
e) All are correct
c) 50 notes up to value of 20000
2. Which of the following is/are incorrect d) 20 notes up to value of 2000
in respect of Garnishee order? e) None of the above
a) Applicable for the accounts in the same 7. How many mutilated notes in number and
capacity and Right of set off is available. value can be adjudicated and value can be given
b) Order issued in the name of partnership over the counter?
firms attaches the partnership account and also a) 10 pieces’ value Rs.10000
the individual partner's accounts. b) 5 pieces of any value
c) deceased and undischarged insolvent are not c) 5 pieces of value Rs.5000
attached d) 10 pieces of value Rs.5000
d) Apply on SB, CD, FD, Credit balance in CC, e) None of the above
surplus amount of margin in loan against 8. For counterfeit notes following is/ are
deposit and doesn’t extend to any future incorrect?
deposits made. a) In no cases the counterfeit notes to be
e) None of the above returned to tenderer.
3. Which is/ are incorrect statement in b) For counterfeit notes received 4 per
reference to an IT attachment order? transaction the reporting to police authority is
a) Apply on SB, CD, FD, Credit balance in CC, waived
surplus amount of margin in loan against c) For counterfeit notes received 5 and above in
deposit and Right of set off is available. single transaction FIR to be lodged on same day
b) In case an IT attachment order is received on d) A and B above
a partnership account, the same will attach the e) None of the above
personal accounts of the partners as well 9. For value of mutilated notes denomination
c) Joint a/c is also attached on pro-rata basis. less than Rs.50 which statements is/ are
d) order to be served only on the Branch/Office correct?
concerned, where assesse accounts are a) If single undivided portion of note is more
maintained and not to the Head Office of Bank than 50% of the actual size of note full value to
e) None of the above be given
4. Attachment order issued under which b) If single undivided portion of note is more
act? than 50% of the actual size of note 50% value
a) Contract act to be given
b) Indian Income tax act c) If all the pieces of note tendered is less than
c) Banking regulation act 50% of actual note no value to be given
d) Under law of subrogation d) a and b are correct
e) None of the above e) a and c are correct
5. Which is the service not provided by 10. For notes of denominations 50 and
the Bank branches over the counter? above following is/ are correct?
a) Issue of fresh/ good quality notes and coins a) Full value is to be paid if single largest
on demand undivided piece of the note presented is more
than 80 percent

11
b) Half the value of the note is payable if the e) None of these
undivided area of the single largest undivided 17. What is the CBS limit for debit to SB account
piece of the note presented is equal to or more through cheque for cash withdrawal?
than40 percent and less than or equal to 80 a) Rs.10000
percent b) Rs.200000
c) Both A & B are Correct c) Rs.50000
d) None of the above d) No limit
11. What is uncurrect coins and since when e) None of these
they are not legal tender? 18. What is the CBS limit for debit to SB
a) All coins below 50 paise, since 2011 account through cheque presented by
b) All coins below 25 paise since 2011 third party for cash withdrawal?
c) All coins below Rs.1 since 2009 a) Rs.10000
d) All defaced coins since 2009 b) Rs.50000
e) None of the above c) Rs.100000
12. Which among the following is not true d) Rs.200000
regarding Inter-branch CBS e) No limit
transactions? 19. How much a SB customer can withdraw
a) Limit is fixed per day cash through withdrawal slip in CBS
b) Limit is fixed per month branches?
c) Limit doesn't include cash a) Rs.2000
deposited in CDM b) Rs.10000
d) 1 & 2 c) Rs.50000
e) 2 & 3 d) Rs.200000
13. To enhance the CBS limit on continuous e) No limit
basis like fee collection account, whose 20. How much a third party can withdraw
permission is required? cash from a SB account of a customer
a) Account maintaining branch through withdrawal slip in CBS
b) Facilitator branch branches?
c) Regional Office a) Rs.2000
d) Planning Dept. CO. b) Rs.10000
e) KYC cell, CO c) Rs.50000
14. If a customer wants to exceed the d) Rs.200000
prescribed ceiling limit, who has to take e) No limit
up this to ITD? 21. What is the CBS limit for debit to CDCC
a) Account maintaining branch account through cheque for cash
b) Facilitator branch withdrawal?
c) Regional Office a) Rs.100000
d) 1 or 2 b) Rs.200000
e) 2 or 3 c) Rs.50000
15. What is the CBS limit for debit to CDCC d) No limit
account through cheque which is e) None of these
presented for clearing? 22. The CBS limit fixed for transfer debit to
a) Rs.100000 SB account is
b) Rs.200000 a) Rs.2000
c) Rs.50000 b) Rs.10000
d) No limit c) Rs.50000
e) None of these d) Rs.200000
16. What is the CBS limit for credit to CDCC e) No limit
account by cash deposit? 23. The CBS limit fixed for remittance by
a) Rs.100000 cash in loan accounts
b) Rs.200000 a) Rs.200000
c) Rs.50000 b) Rs.50000
d) No limit c) No limit

12
d) Not Permitted reporting
e) None of these b) 15 days from the date of reporting
24. A loan borrower wants to transfer c) 15 working days from the date of
amount to his loan account through reporting
CBS transaction. What is the ceiling d) 1 month from the date of reporting
limit fixed for this transaction? e) Immediately
a) Rs.200000 30. In case of erroneous debits taken place
b) Rs.50000 in a customer’s account, either through
c) No limit our fault or where the fault is elsewhere
d) Not Permitted in system, the highest discretionary
e) None of these power of CRM to approve
25. The CBS ceiling limit for issuing DD to compensation is _____?
Customer by way of transfer of amount a) Rs.10000
is b) Rs.25000
a) <Rs.50000 c) Rs.100000
b) ≤Rs.50000 d) Rs.300000
c) Rs.200000 e) Rs.500000
d) Not Permitted 31. In case of erroneous debits taken place
e) No limit in a customer’s account, either through our
26. The CBS ceiling limit fixed for payment fault or where the fault is elsewhere in system,
of DD issued on CCO & presented at any the highest discretionary power of SRM to
of the CBS branches by way of transfer approve compensation is ____?
to account is a) Rs.10000
a) <Rs.50000 b) Rs.25000
b) ≤Rs.50000 c) Rs.100000
c) Rs.200000 d) Rs.300000
d) Not Permitted e) Rs.500000
e) No limit 32. In case of erroneous debits taken place in a
27. Which of the following is not covered customer’s account, either through our fault or
under Compensation policy? where the fault is elsewhere in system, whose
a) Payment of cheques after discretion is to approve compensation amount
acknowledgement of stop payment of >Rs.750000?
instructions a) GM, CO
b) Foreign exchange services b) ED
c) Lending c) MD & CEO
d) 2 & 3 d) Board of Directors
e) None of these e) 2 or 3
28. In case verification of an entry reported 33. In case of erroneous debits taken place
to be erroneous by the customer does not in a customer’s account, either through
involve a third party, bank shall arrange to our fault or where the fault is elsewhere in
complete the process of verification within a system, whose discretion is to
maximum period of ___? approve compensation amount of
a) 7 working days from the date of reporting >Rs.25000 to Rs.100000?
b) 15 days from the date of reporting a) Regional Manager
c) 15 working days from the date of reporting b) GM, CO
d) 1 month from the date of reporting c) ED
e) Immediately d) MD & CEO
29. In case verification of an entry reported e) 2 or 3
to be erroneous by the customer does not 34. In case of erroneous debits taken place
involve a third party, bank shall arrange to in a customer’s account, either through
complete the process of verification within a our fault or where the fault is elsewhere
maximum period of ____ ? in system, the highest discretionary
a) 7 working days from the date of power of ED to approve compensation

13
is _____. e) None of these
a) Rs.10000 40. If there is any delay in outward
b) Rs.25000 collection of Forex cheques beyond the
c) Rs.100000 next day of cooling period, interest has
d) Rs.300000 to be paid to the customer for delayed
e) Rs.500000 period at the rate of _____?
35. In case of erroneous debits taken place a) SB rate
in a customer’s account, either through b) MCLR + 1%
our fault or where the fault is elsewhere c) TD rate
in system, the highest discretionary d) No interest will be paid
power of MD & CEO to approve e) 2% over TD rate
compensation is _____. 41. Within how many days from the date of
a) Rs.100000 NOSTRO credit, the Forex inward
b) Rs.300000 remittance has to be credited into the
c) Rs.500000 customer's account?
d) Rs.750000 a) Immediately
e) Rs.1000000 b) 3 days
36. In case a cheque has been paid after c) 5 days
stop payment instruction is d) 7 days
acknowledged by the bank, bank shall e) 15 days
reverse the transaction within ____? 42. In case of delay in credit of Foreign
a) 2 working days inward remittance within stipulated
b) 3 working days date, interest will be paid at the rate of
c) 7 days _____?
d) 15 working days a) SB rate
e) 5 days b) SB rate + 2%
37. In case of collection of outward USD c) TD rate
denominated cheques, the cooling d) TD rate + 2%
period from the date of NOSTRO credit e) None of these
is ____? 43. Regarding collection of outstation
a) 3 working days cheques, if the delay in collection goes
b) 7 calendar days beyond 14 days, interest will be paid at
c) 15 working days ______ ?
d) 21 calendar days a) TD rate of corresponding period
e) 5 working days b) SB rate
38. What is the cooling period for outward c) SB rate + 2%
collection of Forex cheques other than d) 1 or 2 whichever is higher
USD denominated? e) 1 or 3 whichever is higher
a) 14 working days 44. In case of extra ordinary delay of collection
b) 15 calendar days of outstation cheques exceeding 90 days,
c) 16 calendar days interest will be paid at _____?
d) 21 working days a) SB rate
e) 5 working days b) TD rate
39. If the collection proceeds of USD c) 2% over SB rate
denominated Forex cheque is credited d) 1% over SB rate
on the next day of cooling period, e) 2% over TD rate
interest from the date of NOSTRO 45. If a credit card is issued and activated
credit to Account credit date will be without the consent of customer and also
paid at the rate of _____? charges are debited, what is the remedy for the
a) SB rate aggrieved customer ___?
b) SB rate + 2% a) Charges debited to be reversed immediately
c) TD rate b) Penalty of full value of charges to be paid
d) TD rate + 2%

14
c) Penalty of twice the value of charges to be interest at TD rate will be paid
paid d) 1 & 3
d) 1 & 2 e) 2 & 3
e) 1 & 3 49. In case of ATM transaction in which
46. When a cheque is deposited in a loan customer account is debited but cash is
account for collection and there is a not disbursed, remedial action has to
delay in collection process, interest will be taken within ___?
be paid at ____? a) T+1 day
a) SB rate b) T+5 days
b) TD rate c) T+7 days
c) ROI of loan d) T+14 days
d) ROI of loan + 1% e) T+15 days
e) No interest will be paid 50. What is the timeline for auto reversal in
47. If a cheque given for collection is lost and case of UPI transaction in which customer
intimation related to his lost cheque is account is debited but beneficiary account is
conveyed to customer beyond the stipulated not credited?
time (7/10/14 days), in addition to payment of a) T+1 day
interest for the period exceeding this stipulated b) T+5 days
time, interest at SB rate for further delay in c) T+7 days
obtaining duplicate instrument will be paid for d) T+14 days
____? e) T+15 days
a) 7 days 51. What is the compensation amount to
b) 10 days be paid for delay in auto reversal of IMPS
c) 3 days transaction in which customer account is
d) 15 days debited but beneficiary account is not
e) 5 days credited?
48. Which among the following is true a) Rs.50/ day
regarding issue of duplicate DD? b) Rs.25/ day
a) will be issued within a week c) Rs.100/ day
b) will be issued within a fortnight d) Rs.500/ day
c) for delay beyond stipulated time, e) Rs.20/ day

Answer:

Q. No Ans Q. No Ans Q. No Ans Q. No Ans Q. no Ans Q. no Ans

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

15
 OCAS, Documents handling & Retention Policy, Income Tax Act, TDS, GST,
Significant accounting policies, Security arrangement, Mandate Management System,
FCRA 2010

52. Alerts generated in OCAS will be escalated b) RO has to consider within 24 hours
to Regional Office if it is not attended by branch c) RO can take maximum of 2 working
within ___? days to consider
a) 3 days d) 1 & 3
b) 5 days e) 1 & 2
c) 7 days 59. What is the time period (from the date of
d) 15 days closure) of maintenance of records related to
e) 1 week written off loan accounts in which CGTMSE
53. Which among the following is not the claim is already received?
classification of Alerts in OCAS? a) 3 years
a) Low risk alerts b) 5 years
b) Medium risk alerts c) 7 years
c) High risk alerts d) 8 years
d) Exceptionally risk alerts e) can be destroyed immediately
e) 3 & 4 60. The preservation period of Passbook
54. What should be the age of documents to be dispatch register is ____?
sent to offsite record rooms? a) 2 years
a) 2 years b) 3 years
b) 3 years c) 5 years
c) 5 years d) 8 years
d) 8 years e) 10 years
e) 10 years 61. Outward cash remittance register has to be
55. Who has to inspect the offsite record room? maintained for ___?
a) Deputy Manager of branch a) 2 years
b) Manager of branch b) 3 years
c) Designated official from c) 5 years
Administrative Office d) 8 years
d) 1 or 3 e) 10 years
e) 1 or 2 or 3 62. Branch has to maintain Petty cash register
56. What is the periodicity of inspection to for _____?
offsite record room? a) 2 years
a) Monthly b) 3 years
b) Bimonthly c) 5 years
c) Quarterly d) 8 years
d) Half yearly e) 10 years
e) Yearly 63. Closed jewel loan applications has to be
57. Electronic data that is stored has to be preserved for _____?
reviewed as to its access and availability once in a) 2 years
___? b) 3 years
a) 1 month c) 5 years
b) 3 months d) 8 years
c) 6 months e) 10 years
d) 12 months 64. Branch has to preserve cheque book
e) Not required register for at least ____?
58. Which among the following is true a) 2 years
regarding retrieval of old records from offsite b) 3 years
record room? c) 5 years
a) RO's permission is required d) 8 years

16
e) 10 years a) 2.5 lacs
65. Cash balance book & Vault register has to b) 3.00 lacs
be maintained for at least ___? c) 5.00 lacs
a) 2 years d) no exemption is given
b) 3 years 73. What is the threshold limit for levy of
c) 5 years surcharge on tax payers?
d) 8 years a) 10 lacs
e) 10 years b) 25 lacs
66. The preservation period of letter received & c) 50 lacs
dispatch registers are ____? d) 100 lacs
a) 3 years 74. Which section of income tax income tax
b) 5 years provides rebate for tax payers whose net
c) 8 years taxable annual income is less than 5 lacs?
d) 10 years a) section 206C
e) 15 years b) section 192B
67. Passbook issue register has to be preserved c) section 36
for ____? d) section 87A
a) 5 years 75. What is maximum permissible deduction
b) 6 years under section 80TTB of income tax act?
c) 8 years a) 10000
d) 10 years b) 25000
e) 15 years c) 50000
68. Branch shall preserve Relieving Officer d) 60000
Certificate for ____? 76. Which of the following regarding tax
a) 5 years exemption for electrical vehicle is correct?
b) 6 years A. Guidelines regarding the deduction
c) 8 years are provided section 80EEB of income
d) 10 years tax act.
e) 15 years B. The loan must be sanctioned or
69. Documents related to closed advances has availed during the period 1 April 2019
to be safeguarded for ____? till 31 March 2023 to get exemption.
a) 5 years C. The loan must be taken from a
b) 6 years financial institutions only.
c) 8 years D. Individuals can also claim the
d) 10 years deduction up to Rs 1,50,000 in a FY.
e) 15 years a) A,B,C
70. Key register and Account opened & closed b) A,B,D
registers are to be maintained for at least ___? c) B,C,D
a) 5 years d) All the above
b) 6 years 77. What is rate of LTCG (Long term capital
c) 8 years gains) for sale of equity shares?
d) 10 years a) 10% if value of sale is more than 1
e) 20 years lacs
71. Which among the following has to be b) 20% if value of sale is more than 1
preserved permanently? lacs
a) Equitable Mortgage register c) 10% irrespective of value
b) Safe deposit locker key register d) 20% irrespective of value
c) Locker break open register 78. What is rate of taxation for partnership
d) 1 & 3 firms?
e) All of these a) 30%
72. Under the new taxation regime senior b) 15%
citizens are exempt from paying tax up c) 25%
to? d) 22%

17
79. Who are not exempt from TDS charged a) 3%
under section 194N for cash withdrawals? b) 2%
a) Banking correspondents c) 1%
b) Limited Companies d) 2.50%
c) ATM cms 88. Which entity provides tool for GST due
d) Government accounts diligence verification?
80. What is due date for TDS payment for Q4? a) CSDL
a) 7th of April b) NSDL
b) 15th of May c) CAMS
c) 30th of April d) NeSL
d) 15th of April 89. Recovery in NPA accounts under One Time
81. What is the penalty for non-furnishing of Settlement scheme is first appropriated
TDS certificate after 15 days from due date? towards:
a) 100 per day a) Principal
b) 100 per week b) Interest
c) 100 per fortnight c) Expenses
d) 100 per month d) Provision
82. What is TDS certificate to be given for e) None of Above
landlord upon deduction of rent? 90. Depreciation is provided on straight-line
a) Form 16A method at the rates for Furniture:
b) Form 16B a) 10.00%
c) Form 16C b) 16.67%
d) None c) 20.00%
83. What is the rate of penalty for non- d) 33.33%
deduction e) 100.00%
of TDS? 91. Depreciation is provided on straight-line
a) 1% method at the rates for Electrical
b) 1.50% Installations, Vehicles & Office
c) 2% Equipment:
d) 2.50% a) 10.00%
84. Under which payment mechanism tax b) 16.67%
will be paid by the receiver rather than c) 20.00%
the supplier? d) 33.33%
a) Reverse charge mechanism e) 100.00%
b) forward charge mechanism 92. Depreciation is provided on straight-line
c) LUT method at the rates for Fire Extinguishers:
d) equitable a) 10.00%
85. What is threshold limit under GST for b) 16.67%
getting books of account audited? c) 20.00%
a) 1.00 crore d) 33.33%
b) 2.00 crore e) 100.00%
c) 5.00 crore 93. Insurance Cover available for Cash in
d) 10.00 crore transit is_____:
86. E-way bill is an electronic document a) 100 lac
generated on the GST portal evidencing b) 200 lac
movement of goods when value goods c) 300 lac
to be transported exceed? d) 400 lac
a) 100000 e) 500 lac
b) 50000 94. Cash remittance up to 30 lakhs is to be
c) 25000 escorted by:
d) 250000 a) 1 armed guard
87. What is rate of GST to be levied for Gold b) 2 armed guard
auctioned by our bank? c) no armed escort required

18
d) Police escort 102. Which is the appropriate fire extinguisher
e) None of Above to extinguish Electrical fire:
95. Cash remittance above 30 lakhs up to a) ABC type
100 lakhs are to be escorted by: b) CO2 type
a) 1 armed guard c) DCP type
b) 2 armed guard d) Any one of 1, 2, 3
c) no armed escort required e) None of Above
d) Police escort 103. The ABC/ DCP & CO2 type of Fire
e) None of Above Extinguisher to be normally refilled once in:
96. Cash remittance above 100 lakhs up to a) 6 months
500 lakhs are to be escorted by: b) 9 months
a) 1 armed guard c) 12 months
b) 2 armed guard d) 18 months
c) no armed escort required e) 24 months
d) Police escort 104. The bank who will forward the mandate
e) None of Above given by their corporate customer through
97. Cash remittance above 500 lakhs is to NPCI to the other bank for approval of the
be escorted by: mandate is called:
a) 1 armed guard a) Destination Bank
b) 2 armed guard b) Drawee Bank
c) no armed escort required c) Drawer Bank
d) Police escort d) Sponsor Bank
e) None of Above e) None of Above
98. Cash remittance send on foot must not 105. For all validated mandate, NPCI would
exceed: generate a:
a) 50000 a) Unique Mandate Reference Number (UMRN)
b) 1 lac b) Unique Mandate Transaction Number
c) 2 lac (UMTN)
d) 3 lac c) Unique Mandate Serial Number (UMSN)
e) 5 lac d) Unique Mandate Priority Number (UMPN)
99. The Functioning of CCTV system should e) None of Above
be monitored on: 106. Mandates for this type of cash credit
a) daily basis account will not be accepted:
b) weekly basis a) CC-STAFF
c) fortnightly basis b) CC-Public
d) monthly basis c) CC-DEP
e) quarterly bases d) CC-LlC
100. Sharing of CCTV footage with the Police e) None of Above
regarding incidents of theft/ attempted 107. Turnaround time (TAT) for processing
burglary/ robbery/ dacoity /fire may be mandates up to 3 lakhs by the destination
done with the approval of: banks are:
a) Branch Manager a) T+3
b) Chief Manager at RO b) T+5
c) Chief Security Officer c) T+7
d) IR & Vigilance Officer at RO d) T+10
e) No approval required e) None of Above
101. Which is the appropriate fire extinguisher 108. Turnaround time (TAT) for processing
to extinguish the Computer fire: mandates above 3 lakhs by the
a) ABC type destination banks are:
b) CO2 type a) T+3
c) DCP type b) T+5
d) Sand c) T+7
e) None of Above d) T+10

19
e) None of Above d) Section 19
109. How much incentive per mandate e) None of Above
destination banks will get if the mandates are 112. The bank shall report to the Central
processed as per the defined TAT: Government within how many hours any
a) Rs.5/- transaction in respect of receipt or utilization of
b) Rs.10/- any foreign contribution by any person
c) Rs.15/- whether or not such person is registered or
d) Rs.20/- granted prior permission under the Act
e) None of Above a) 24 hours
110. Foreign Contribution (Regulation) Act, b) 48 hours
2010 has come into effect from: c) 72 hours
a) 1 April, 2011 d) 96 hours
b) 1 May, 2011 e) None of Above
c) 1 June, 2011 113. The Customer Record of Profile (CROP) in
d) 1 July, 2011 respect of FCRA account needs to be updated
e) None of Above at what interval without fail.
111. Which section of FCRA Act states that a) Every 6 months
Foreign contribution to be received through a b) Every year
scheduled bank c) Every 2 year
a) Section 11 d) Every 5 year
b) Section 12 e) None of Above
c) Section 17

Answer:

Q. No Ans Q. No Ans Q. No Ans Q. No Ans Q. no Ans Q. no Ans

52 D 63 B 74 D 85 C 96 B 107 B
53 E 64 C 75 C 86 B 97 D 108 D
54 B 65 C 76 B 87 A 98 C 109 A
55 E 66 B 77 A 88 B 99 A 110 B
56 A 67 A 78 A 89 A 100 C 111 C
57 C 68 C 79 B 90 A 101 B 112 B
58 B 69 A 80 C 91 C 102 D 113 B
59 B 70 D 81 A 92 E 103 E
60 A 71 E 82 C 93 E 104 D
61 B 72 A 83 A 94 C 105 A
62 B 73 C 84 A 95 A 106 B

20
 Banking Ombudsman

1. which of the following are incorrect d)60 days e) None of these

about Banking Ombudsman Scheme 6. One can file the appeal against the
2006 award or decision of the Banking
a) RBI has formulated the BO scheme Ombudsman rejecting the complaint
b) introduced under Section 36 A of within______ of the date of receipt of
the BR Act, 1949 the Award, The Appellate Authority
c) CGM or GM of RBI may be may, if he/ she is satisfied that the
appointed as Banking ombudsmen applicant had sufficient cause for not
d) introduced under Section 35 A of making an application for appeal within
the BR Act, 1949 time, also allow a further period not
e) max period of Bo appointment can exceeding ______
be 03 year a)15 days, 30 days b)30 days,
2. Complaint can be filed by whom in 45 days c)30 days, 60 days
Banking Ombudsman? d) 30 days, 30 days e) None of the
a) customer above
b) one's authorized representative 7. What is the remedy is available to the
(other than an advocate) bank when Ombudsman passes an
c) customer appointed advocate award directing the bank to make the
d) A and B payment?
e) A and C a) Bank can go in for appeal in a court
3. Complaint can be made by the of law
customer to Ombudsman within ____ b) Bank can appeal within 30 days of
from the date of receipt of receipt of acceptance of award by
unsatisfactory reply from bank and customer
within _____ if not receive any reply c) Bank can make appeal to RBI within
from the bank to his representation. 30 days
a) 02 Years, 02 year & 02 month d) Bank can file a suit against the
b) 01 Year, 02 year & 01 month decision with a civil court
c) 02 Years, 01 year & 02 month e) None of the above
d) 01 Year, 01 year & 01 month 8. If a bank wants to go in for appeal
e) None of the above against decision of Ombudsman, whose
4. Banking Ombudsman may pass an permission in the bank is required?
award as compensation for any loss a) Assistant General Manager
suffered by the complainant is limited b) Chairman or in his absence CEO, MD
to the amount arising directly out of the or the ED or any other officer of equal rank
act or omission of the bank or Rs______, c) Board of Directors
whichever is lower and ______ d) Regional Manager
for mental agony and harassment. e) None of the above
a)20 lakh, 02 lakh b)10 lakh, 02 9. All Public Sector Banks, Some Private
lakh c)10 lakh, 01 lakh sector Banks and Foreign Banks has
d)20 lakh, 01 lakh e) None of the been advised to appoint an Internal
above Ombudsman designated as?
5. Award becomes binding on the bank if a) Chief Customer Service Officer(CCSO)
customer gives acceptance within b) Chief Complaint Service Officer(CCSO)
_______days of date of receipt of the c) CPIO
award, d) CAPIO
a) 30 days b)15 days c)45 days e) None of the above

21
 Q. Ans Q. Ans
10. Ombudsman for Digital Transaction
(ODT) shall apply on _______ in India? No No
a) System Provider 1 B 6 D
b) System Participant 2 D 7 B
c) scheduled commercial banks
d) A and B 3 D 8 B
e) A, b and c. 4 D 9 A
5 A 10 B

22
 Module B – Deposit
Deposit

1. How many witness required for a. Aggregate of all credit does not
opening of SB account for Illiterate exceed Rs.1 lac in a FY
customer? b. Aggregate of all withdrawals and
a. 0 transfers in a month does not
b. 2 exceed Rs. 10,000.
c. 3 c. Balance at any point of time does
d. 4 not exceed Rs. 50,000.00
e. 5 d. Foreign remittances will not be
2. SB Overdraft Accounts not adjusted credited into small a/c unless
and outstanding beyond______ days identity is fully established.
from the date of granting should be e. Small a/c are provided with a time
treated as irregular and reported to limit of 12months if person
Regional Office in ERI. provides proof of having applied.
a. 30 7. Which of the following is/are correct
b. 90 while facilitating opening of Bank
c. 60 Accounts of Prisoners?
d. 7 a. SB SMALL account in the absence
e. 180 of prescribed KYC documents, on
3. Which of the following is true with production of self-attested
respect to BSBDA? photograph and affixation of
a. Minors of age more than 10 can signature or thumb print.
open b. The limit criteria in SB SMALL
b. Pensioners can open. account on balance shall not be
c. Joint accounts are permitted considered while making deposits
d. Chq book will not be issued through Govt. grants, welfare
e. ALL benefits and payment against
4. What is the PAI cover under SB procurements.
Student? c. Incase prescribed KYC documents
a. 1lakh are provided, open an account as
b. 2lakh stipulated our (KYC/AML/CFT
c. 5lakh master circular no.
d. 50,000.00 MASTER/015/2017-18 dated
e. Nil 08/12/2017)
5. How many debit transactions can be d. Branches shall for the purpose of
done in SB account? above a) & b), make necessary
a. 50 per half year arrangements, including deputing
b. Unlimited its officials to the jail for obtaining
c. 50 per month signature/thumb impression or
d. 50 per annum performing biometric
e. 50 per half year excluding ATM, authentication of the Aadhaar
IOB Net banking & standing number of the prisoner with
Instructions. necessary assistance from the jail
6. Which of the following not true under authorities.
BSBDA-Small account? e. All

23
8. Which of the following/s has Institution account(s) per MONTH per
necessarily to be done while opening Branch.
current account? a. 2
a. No objection certificate from b. 1
existing lender bank. c. 5
b. Draw CIBIL report and ensure no d. No Specific Target
borrowings & default. e. 3
c. Obtain declaration mentioned in 14. What is the minimum entry age in
the current account opening form. opening SB Little Star account?
d. Prior approval of RO should be a. 0
obtained while opening for b. 1 day
liquidator/Executor/Administrator c. 1 year
/Trust d. 5 years
e. All e. 10 years
9. Whose prior sanction or permission is 15. What is the CA Scheme having Facility
required while opening current to pay Interest on deposit?
account for other banks? a. CD Gold
a. Concerned Regional Office b. Cd Diamond
b. BOD, Central Office c. CD Platinum
c. concerned Zonal Office d. CD Silver
d. Concerned Circle Office e. CD Premium
e. KYC Nodal officer, Regional Office 16. What is the minimum period(MONTHS)
10. In which of the following, the minimum of transaction and base limit amount in
balance Rs.1000/- to be maintained in SB Arogya Mahila, in which Free life
current account in metro & urban time credit card is allowed?
branches. a. 6 & 5000
a. Society b. 6 & 10000
b. MSME units c. 6 & 20000
c. MICRO units d. 12 & 10000
d. Micro & Small e. 12 & 5000
e. Trust 17. How much Overdraft can be given in a
11. Opening of minimum _______ SB Defense Salary A/c(Scheme-
accounts per day per Branch & SBDEFCOM)?
minimum_______Current accounts a. 1MONTH SALARY
per day per Metro/Urban Branch. b. 2MONTH SALARY
a. 5,2 c. 3MONTH SALARY
b. 5,1 d. 6MONTH SALARY
c. 5,5 e. No Overdraft
d. 3,1 18. What is the threshold limit for liquid
e. None deposit facility under SB Gold-I
12. New Customer Acquisition Day on scheme?
___________ basis. a. 125000
a. Monthly b. 50000
b. Quarterly c. 100000
c. Annual d. 65000
d. Weekly e. 500000
e. Fortnight
13. Standard Operating Procedure for
CASA Opening of minimum _______

24
19. How much free Personal Accident required to be re-invested within a
insurance cover available under SB specific period (maximum of 03 years)
Silver & SB Gold scheme? to avoid tax.
a. 50,000 & 1,00,000 a. Sec 187
b. 1,00,000 & 2,00,000 b. sec 80
c. 2,00,000 & 5,00,000 c. sec 54
d. 1,00,000 & 5,00,000 d. sec 24
e. 5,00,000 & 10,00,000 e. sec 80ee
20. What is the minimum balance 26. What is the maximum Time Limit for SB
requirement under IOB Supreme Small account to submit KYC
Current A/c? documents?
a. 1000 a. 12M
b. 2000 b. 6M
c. 500000 c. 24M
d. 100000 d. 36M
e. 7500 e. 48M
21. How much folio charge concession (%) 27. What is the age Limit for Customer
offered under IOB Classic & IOB Super under IOB SB Trendy Scheme?
current account respectively? a. 18-40
a. 25,50 b. 21-38
b. 50,100 c. 18-35
c. 100,100 d. 25-45
d. 25,100 e. 20-32
e. Nil, Nil 28. What is daily minimum Balance for SB
22. What is the maximum transaction limit Trendy having digital turnover.
per day at ATM/PoS/E-com under IOB a. Rs 20000.00
Corp/IOB Prem Corp salary Account? b. Rs 5000.00
a. 30K/50K/75K c. Rs 10000.00
b. 30K/75K/100K d. Rs 1000.00
c. 30K/100K/75K e. Rs 15000.00
d. 30K/100K/100K 29. Which Type of KYC is introduced in SB
e. 30K/75K/75K Trendy Scheme.
23. IOB Eighty Plus SB Scheme: a. A KYC
______number of NEFT/RTGS free per b. E KYC
month? c. C KYC
a. 4 d. V KYC
b. 3 e. NOA
c. 2 30. Facility of Auto sweep, when the
d. 1 Balance exceeds Rs___________ IN SB
e. 0 Trendy Scheme.
24. Minimum period for Deposit Account a. Rs 50000.00
under Capital Gains is ________ days. b. Rs 35000.00
a. 7 c. Rs 75000.00
b. 15 d. Rs 30000.00
c. 180 e. Rs 100000.00
d. 365 31. A Term deposit can be made for a
e. 120 period maximum of _______ months.
25. Under sec _____ of the Income Tax Act, a. 180
the income from capital gains is b. 120

25
 c. 240 d. 100 & 100
d. 72 e. 1000 & 500
e. 84 37. The minimum period for RDP is
32. Term Deposit under Vardhan Scheme _________days.
for Senior Citizen an additional interest a. 180
of _____% given over the Card Rate. b. 90
a. 1% c. 120
b. 0.75% d. 60
c. 0.5% e. 365
d. 1.5% 38. Maximum period of deposit under IOB
e. 0.25% Tax Saver is ________ & _________
33. A customer requested at your Branch Years.
for pre closure of a RDP of Rs 4.00 Lac a. 1 & 10
the penalty amount will be b. 5 & 10
__________%. c. 2 & 8
a. 1% d. 3 & 10
b. 0.50% e. 5 & 8
c. Nil 39. A customer requests you to sanction a
d. 1.5% loan as per his eligibility against a Tax
e. 0.75% Saver deposit of Rs 4.00 Lac. The
34. Additional interest rate contracted for eligible Loan amount will be Rs
Senior Citizen’s deposit is payable for _________Lac.
deposits only up to ____________ lacs a. 3.6
on premature closure (Vardhan b. 3.5
Scheme) c. 3
a. 1.00 Lac d. Not eligible
b. 2.00 Lac e. Can sanctioned by RLCC
c. 5.00 Lac 40. IOB Suvidha Scheme is not Applicable
d. 10.00 Lac to ____________________.
e. 7.50 Lac a. Firms
35. As per Section 269-T of the Income Tax b. PSU
Act, whenever payment of term c. Minor Special Deposit
deposits is made to the depositors, d. TRUST
branches should effect the payment of e. HUF
proceeds only by Drafts or Bankers’ 41. Minimum Deposit amount under IOB
Cheques or by credit to the depositor’s Suvidha Scheme is Rs
account if the proceeds of the deposit _________________.
payable is Rs. ____________ or more. a. 100000
a. 10000 b. 50000
b. 5000 c. 1000
c. 20000 d. 10000
d. 50000 e. 25000
e. 100000 42. Minimum and Maximum Period Under
36. The minimum Deposit amount for RDP IOB Suvidha are ____________ &
& RD are Rs _______ & Rs ___________months respectively.
_________respectively. a. 6 & 120
a. 1000 & 100 b. 15 & 120
b. 100 & 50 c. 12 & 120
c. 1000 & 50 d. 24 & 120

26
 e. 18 & 120 c. 15%
43. IOB Eighty Plus scheme the additional d. 5%
Interest Rate is ________% over the e. 25%
card rate. 49. STBD-Short Term Bank deposit made
a. 0.25% under Gold Monetization Scheme with
b. 0.35% designated Bank for a short term
c. 0.50% period of ___________to
d. 0.75% __________months.
e. 1% a. 12, 36
44. Any individual account holder having b. 06, 24
an account with the operational c. 12, 60
instructions “________________” or d. 6, 12
“___________” can open a deposit e. 3, 12
online. 50. Under GMS the minimum deposit of
a. Self-Operated, F or S any one time shall be gold (bars, coins,
b. self-Operated, E or S jewelry excluding stones other metals)
c. Jointly by all, E or S equivalent to ______ grams of gold of
d. F or S, Jointly by all fineness.
e. Self-Operated & Jointly by all a. 10
45. Special Fixed Deposit (SFD M/Q) the b. 50
minimum deposit amount is c. 30
Rs___________. d. 500
a. 1000 e. 1000
b. 2000 51. The depositor shall produce the receipt
c. 5000 showing the _______ fineness
d. 3000 equivalent amount of gold issued by
e. 500 the CPTC to the designated Bank
46. The minimum and maximum amount branch, either in person or through
of deposit in IOB Tax Saver Scheme is post for issuance of Final Gold deposit
Rs ___________ & RS certificate by Designated Bank.
____________________ respectively. a. 995
a. 10000 & 200000 b. 999
b. 5000 & 150000 c. 990
c. 10000 & 500000 d. 900
d. 10000 & 150000 e. 999.99
e. 20000 & 500000 52. STBD-Short Term Bank Deposit Initial
47. The minimum amount of loan against lock-in period shall be ___________
RD accounts should be Rs. _______ year and no premature payment will be
only. allowed during the said period.
a. 1000 a. 3
b. 500 b. 1
c. 100 c. 2
d. 200 d. 5
e. 2000 e. 4
48. Loan against Bank deposit: For RDP 53. A Medium Term Government Deposit
with remaining maturity of 4 years and (MTGD) is allowed to be withdrawn any
above the margin is fixed at ______ %. time after _________ Years and a Long
a. 10% Term Government deposit (LTGD) after
b. 20% _________Years.

27
 a. 3,5 e. NOA
b. 2,3 57. What will be the foreclosure charge if a
c. 2,5 Retail term deposit of Rs 400000.00 is
d. 3,7 closed prematurely?
e. 1,3 a. Rs 5000.00
54. Under GMS the quantity of gold will be b. Rs 2000.00
expressed up to ______ decimals of a c. Rs 1500.00
gram. d. Rs 4000.00
a. 2 e. Rs 1000.00
b. 3 58. _______________ permitted to waive
c. 4 the foreclosure charges for bulk
d. 1 deposit of Public Sector undertakings
e. 5 on a case to case basis.
55. GMS: Accrual of interest on deposits a. MD & CEO
under the scheme will start accruing b. GM Treasury
from the date of conversion of gold c. GM BSMD
deposited into tradable gold bars after d. ED
refinement or __________ days after e. GM BOD
the receipt of gold of the CPTC or the 59. The minimum amount of loan against
bank's designated branch, as the case RD accounts should be Rs. _____ only.
may be, whichever is earlier. a. Rs 100.00
a. 60 b. Rs 500.00
b. 15 c. Rs 1000.00
c. 30 d. No Limit
d. 90 e. Rs 5000.00
e. 20 60. Premature closure is permitted if
56. All transactions, involving payment of depositor gives a minimum
interest on deposits shall be rounded _____________ days’ notice in writing.
off to _________ decimal places for a. 15
FCNR (B) deposits. b. 30
a. 3 c. 45
b. 1 d. 7
c. Rounded off to whole number e. 10
d. 2

Answer:

Q A Q A Q A Q A Q A Q A Q A Q A Q A Q A Q A Q A

1 B 6 E 11 B 16 B 21 B 26 C 31 B 36 C 41 A 46 D 51 A 56 D

2 C 7 E 12 E 17 B 22 E 27 B 32 C 37 A 42 B 47 C 52 B 57 B

3 E 8 E 13 B 18 D 23 B 28 C 33 B 38 B 43 D 48 C 53 A 58 A

4 E 9 B 14 B 19 D 24 B 29 D 34 C 39 D 44 B 49 A 54 B 59 A

5 E 10 C 15 C 20 E 25 C 30 A 35 C 40 C 45 D 50 C 55 C 60 E

28
 Module C – Advances
Loan Policy Document

1. Which among the following is not

covered in our LPD? 6. Define NPLL?
a) Risk Management a) National permitted lending limit
b) Take over b) Net permitted lending limit
c) Entry policy c) Normally permitted lending limit
d) Restrictions d) Notionally permitted lending limit
2. Revised targets under PSL for 7. Specified borrower is one whose
Agriculture (small & marginal farmers exposure in the banking system is
of 10%) and weaker sections of 12% more than from April, 2019 onwards?
are to be achieved in phased manner a) 5000 crores
before? b) 10000 crores
a) 2022-23 c) 15000 crores
b) 2023-24 d) 25000 crores
c) 2024-25 8. Banks’ exposure to Real estate sector
d) 2025-26 has been fixed at?
3. In case of common guarantors, the a) 20% of Gross Domestic exposure
concern will be treated as a group if b) 30% of Gross Domestic exposure
the stake/substantial interest is? c) 20% of Gross Domestic product
a) 15% or more d) 30% of Gross Domestic product
b) 26% or more 9. What is ceiling fixed in our bank for
c) 51% or more loans with residual maturity over 3
d) 76% or more years?
4. Method used for computation of a) 20%
credit exposure for forward b) 25%
transaction? c) 30%
a) Current exposure method d) 35%
b) Credit conversion factor 10. Bank can grant advance for customer
c) DCF in bullion/primary gold up to?
d) Standard deviation a) 50 grams
5. Large exposure framework (LEF) b) 500 grams
means exposure of 10% or above c) no ceiling
banks eligible capital base to d) not permitted
counterparty or group of 11. Hurdle rate for externally rated
counterparties. Here capital base accounts?
refers to? a) B
a) Tier capital as per last audited B/s b) BB
b) Tier I + Tier II capital as per last c) BBB
audited B/s d) A
c) Tier I capital as per latest limited 12. Which among the following is not a
review sign of sickness?
d) Tier I + Tier II capital as per latest a) Stagnant operations
limited review b) Downtrend in sales

29
 c) Strictures d) 25.00%
d) Payment of statutory dues 20. Tenor of IBPC can be minimum and
13. Which among the following is resorted maximum of?
for making investments in form of a) 91 & 120 days
equity involving high risk projects? b) 91 & 180 days
a) Start ups c) 181 & 270 days
b) Venture capital d) 181 & 360 days
c) FPI 21. As per GST E-way bill is mandatory for
d) IPO consignments above?
14. As per SEBI guidelines how much cash a) 20000
flows are to be distributed by InVit to b) 50000
investors? c) 75000
a) 50% d) 100000
b) 70% 22. Bills purchased/discounted for service
c) 80% sector are treated as unsecured
d) 90% advance?
15. TREDS is platform set up for financing a) True b) FALSE
receivables of? 23. Foreign currency loans are to be rolled
a) SHG over on?
b) Agriculturists a) Monthly basis
c) MSMEs b) Quarterly basis
d) Corporates c) Half-yearly basis
16. All fresh proposals accorded in- d) Fortnightly basis
principal by NBC are valid for? 24. Classification of facility as CRE/Non-
a) 1 months CRE are dependent upon lock-in-
b) 2 months period & downward revision of rental?
c) 3 months a) TRUE
d) 6 months b) FALSE
17. Based on Business the bank is 25. Financing to Engineering colleges
segmented into how many categories? require Grading by Rating agencies if
a) 3 the limit is?
b) 4 a) 2 crore & above
c) 5 b) 3 crore & above
d) 6 c) 4 crore & above
18. Maximum permissible repayment d) 5 crore & above
period for used hand machinery? 26. Valuation reports for loan other than
a) 3 years or residual life agriculture are waived up to?
b) 4 years or residual life a) 1 lac
c) 5 years or residual life b) 2 lacs
d) 6 years or residual life c) 3 lacs
19. Minimum stipulated threshold d) 5 lacs
exposure for participation under 27. Working capital for non-MSMEs up to
consortium lending? 2 crores and MSMEs up to 7.5 crore
a) 10% are assessed through Nayak
b) 15% committee method?
c) 20% a) TRUE b) FALSE

30
 28. Which of the following stipulated b) 50 lacs
bench marks for infrastructure in our c) 100 lacs
bank is incorrect? d) 200 lacs
a) CR - 1.33:1 30. Accounts rated below hurdle rate are
b) TOL/TNW - 4:1 to reviewed/renewed once in?
c) DER - 2:1 a) 6 months
d) DSCR - 2:1 b) 9 months
29. Commitment charges are levied for c) 12 months
loans above? d) 15 months
a) 25 lacs

Answers:

Q. No 1 2 3 4 5
Ans C B C B A
Q. No 6 7 8 9 10
Ans C B B D D
Q. No 11 12 13 14 15
Ans C D B D C
Q. No 16 17 18 19 20
Ans C B C A B
Q. No 21 22 23 24 25
Ans B A C A D
Q. No 26 27 28 29 30
Ans A B B B B

31
 Delegation of Financial powers
1. Hurdle rate for sanction credit facilities c) 3 months
Non-priority & Priority? d) 6 months
a) IOB4 & IOB5 9. Take home pay norms of 15% can be
b) IOB6 & IOB5 considered if monthly income exceeds?
c) IOB5 & IOB6 a) 3 lacs
d) IOB 5 & IOB4 b) 4 lacs
2. Which among the following facility is a c) 5 lacs
secured advance? d) 10 lacs
a) Clean Bills 10. Letters of guarantee with onerous clause
b) Trust Receipts can be issued at branch level up to?
c) Future receivables a) 1 year
d) Usance bills under LC b) 3 years
3. For Borrowers with credit limits under c) 5 years
OD/CC with exposures less than 5 crores d) No discretion
any bank can open current account? 11. Certificate Societe General De Surveillance
a) TRUE is pre-shipment inspection report?
b) FALSE a) TRUE
4. The per borrower discretion for loans b) FALSE
against NRE/FCNR Deposits are? 12. Lloyds certificate is quality assurance &
a) 2 times of per borrower limit certification for aircrafts?
b) 3 times of per borrower limit a) TRUE
c) 4 times of per borrower limit b) FALSE
d) 5 times of per borrower limit 13. Interest rates for WCDL are quoted by?
5. The maximum permitted time for a) ALCO
adjustment of excess? b) NBC
a) 1 days c) HLCC
b) 3 days d) Funds committee
c) 5 days 14. Max permitted time period for unsecured
d) 7 days packing credit limits for purchase of
6. Branch head are empowered to consider goods?
excess to MSME's up to? a) 5 days
a) Lower of 5% of WCL/ PDB b) 10 days
b) Lower of 10% of WCL/ PDB c) 15 days
c) Lower of 20% of WCL/ PDB d) 30 days
d) Not authorized 15. Forward contract is a Hedge tool?
7. Adhoc can be sanctioned for a maximum a) TRUE
period of? b) FALSE
a) 30 days 16. What is the margin to be stipulated for
b) 60 days loan against deposits with residual
c) 90 days maturity of more than 4 years?
d) 120 days a) 5%
8. The validly of sanctions accorded are for a b) 10%
period of? c) 15%
a) 15 days d) 20%
b) 1 month

32
17. What is the maximum concession b) 36 months
permissible for short term loans rated IOB c) 48 months
3? d) 60 months
a) MCLR + SP + 1.00% 22. What is the minimum cash margin for loan
b) MCLR + SP + 1.50% against shares?
c) MCLR + SP + 2.00% a) 15%
d) MCLR + SP + 2.50% b) 25%
18. Borrower would be eligible for concession c) 50%
only if weighted average score as per d) 100%
simplified scoring model is more than? 23. Which among the following is not
a) 40% classified as stressed sectors?
b) 50% a) Iron & steel
c) 55% b) Power
d) 60% c) Road & ports
19. In case of new borrowers which parameter d) Telecom
has the weightage for interest concession?
a) Collateral 24. What is the maximum permissible age
b) ROA of book debts?
c) CR a) 120 days
d) TOL/TNW b) 180 days
20. Minimum quantum demand loan eligible c) 270 days
for concession? d) 360 days
a) 25 lacs 25. What is the linked bench mark for
b) 50 lacs short term loans?
c) 100 lacs a) Repo rate
d) 200 lacs b) RLLR
21. Maximum permissible repayment period c) ARR
for Commercial real estate? d) STRBLR
a) 24 months

Answers:

Q. No 1 2 3 4 5
Ans B D A A C
Q. No 6 7 8 9 10
Ans C C D C B
Q. No 11 12 13 14 15
Ans A B D C A
Q. No 16 17 18 19 20
Ans C C B A B
Q. No 21 22 23 24 25
Ans B B D A D

33
 Balance sheet component and Ratio Analysis Working Capital, Term Loan Analysis,
Documentation

1. If current assets are wrongly classified as non- c. Aggressive, Consumption and Manageable
current, it will result……………. d. None of the above
a. Higher lower working capital and Higher 9. Operating cycle differs from one unit to
current ratio another based on their
b. lower working capital and lower current ratio a. nature of business
a. No Effect on working capital and current ratio b. duration of its operating cycle
b. None of the above c. both a and b
2. If non-current liabilities are wrongly classified d. None of the above
as current liability…………………. 10. The completion of Operating cycle means
a. Higher lower working capital and Higher a. Cash in Debtor
current ratio b. Cash into Stock
b. lower working capital and lower current ratio c. Cash into Cash
c. No Effect on working capital and current ratio d. None of the above
d. None of the above 11. MPBF method was firstly introduced in
3. if non -current assets are wrongly classified as a. 1976
current assets b. 1975
a. Higher lower working capital and Higher c. 1977
current ratio d. None of the above
b. lower working capital and lower current ratio 12. Cash Budget Method is used for the Credit
c. No Effect on working capital and current ratio Limit of Rs………..
d. None of the above a. 7.5 Crore and above
4. If current liability is wrongly classified as non- b. 10 Crore and above
current liabilities…………… c. 5 Crore and above
a. Higher lower working capital and Higher d. None of the above
current ratio 13. TURNOVER METHOD/NAYAK Committee
b. lower working capital and lower current ratio method is applicable for Micro & Small
c. No Effect on working capital and current ratio Enterprises (MSEs) up to Rs.
d. None of the above a. 7.5 Crore
5. Working capital can be of …………………. types b. 10 Crore
based on the basis of Time c. 5 Crore
a. 4 d. None of the above
b. 3 14. Working capital up to ………………… of the
c. 2 digital portion of Turnover projected shall be
d. None of the above considered at time of assessment of Working
6. Working capital can be of …………………. types Capital Limit
based on the basis of Value a. 20 %
a. 4 b. 25%
b. 3 c. 30%
c. 2 d. 40%
d. None of the above 15. Margin requirement under MPBF method 1
7. Management of Working Capital involves 3E is ………….
a. Economy, Efficiency and Effectiveness a. 25% of Working Capital Gap
b. Economy, Existence and Effectiveness b. 25% of Total Current Assets
c. Existence, Earning and Effectiveness c. 25% of (Total Current Assets-Core Current
d. None of the above Assets)
d. None of the above
8. What are the different Approaches of working 16. Margin requirement under MPBF method 2
capital investment? is ………….
a. Aggressive, Conservative and Moderate a. 25% of Working Capital Gap
b. Aggressive, Consumption and Modern b. 25% of Total Current Assets

34
c. 25% of (Total Current Assets-Core Current b. Fixed Assets Equals to Current Liability
Assets) c. Current Assets equals to Current Liability
d. None of the above d. None of the above
17. Margin requirement under MPBF method 3 26. The word “Document” defined in ………………..
is …………. a. The Indian Contract Act
a. 25% of Working Capital Gap b. The Negotiable Instrument Act
b. 25% of Total Current Assets c. Indian Evidence Act, 1872
c. 25% of (Total Current Assets-Core Current d. Transfer of the Property Act
Assets) 27. The documents should be
d. None of the above …………………………………
18. Acceptable Benchmark Current Ratio for a. rightly stamped
MSE……………. b. properly executed
a. 1.33 c. Both a & b
b. 1.25 d. Only a
c. 1.66 28. Document establishes a …………………….
d. 2.00 a. legal relationship
19. Desirable DSCR would be above b. contractual relationship
a. 2: 1, c. both a& b
b. 1.5: 1 d. Only a
c. 1.2: 1 29. The documents should mention the
d. None of the above a. correct name and identification of the parties,
20. New Business Committee deals with fresh b. constitution details of the contracting
proposals for sanction of credit limits of Rs. parties
……………………. c. description of the security, if any, to be
a. 15 Crore and above charged
b. 20 Crore and above d. All of the above
c. 10 Crores and above 30. Whether any deviation (in Loan Document)
d. 25 Crores and above from the standard formats permitted
21. Permission accorded by New Business a. Can de deviated at Branch level
Committee means ….. b. Can be deviated after permission from Central
a. Sanction Office Level
b. Ratification c. Can be deviated after permission from
c. Expression of interest Regional Office Level
d. All of the above d. None of the above
22. Expression of Interest accorded by NBC is 31.Execution of Loan Documents in case of Joint
valid for Borrowers
a. 3 months a. All such persons should jointly execute
b. 6 months b. Sign by any one will be sufficient
c. 9 months c. Both a &b
d. 12 months d. None of the above
23. IT Screening Committee deals with 32.In case of Minors, Branches should note to
………………………… obtain the document prescribed in
a. development of software ………………………………. so that the Debit
b. development of Hardware confirmation of Balance and Revival letters
c. development of Machine signed by any one partner will bind all others
d. None of the above a. Annexure-33
24. Long Term resource means ……… b. Annexure-34
a. Equity plus Current Liability c.Annexure-35
b. Long Term Debt plus Current Liability d.Annexure-36
c. Equity plus Long Term Debt 33.Common seal is a must only if it is stated so
d. None of the above in their…………………………….
25. Current Ratio 1:1 means a) Board Resolution
a. Current Assets equals to Fixed Assets b) MOA

35
c) AOA 41.Limitation period for an Usance Bill of
d) None of the above exchange is
34.In case of an unregistered Society (as the a. Three years from the due date
same is in the nature of association of persons) b. Two years from due date
the loan document will be executed by c. One year from due date
…………………….. d. None of the above
a. All the members of the society must jointly 42.Name of the document which is updated
execute the documents with relevant details after sanction and
b. The persons authorized by the Resolution of disbursement of loan
the Office Bearers a) F 568
c. both a & b b) PL6
d. None of the above c) F 378
35. Major changes in the documentation system d) None of the above
MOD 2019 43.When a term loan Borrower dies or when
a. PL-6 & PL-7 are combined one of the term loan borrowers dies, the
b. F-111 & F-111A are combined as F-111 undertaking letter given in the Annexure
(Revised) …………………………………should be obtained from
c. F-379B & F-379C are deleted and F-379 & F- all the legal heirs and guarantors
379A are revised a) Annexure No.35
d. All are correct b) Annexure No.36
36.Whom to advice the document Sanction c) Annexure No.37
Advice F 568 d) Annexure No.38
a. Borrower only 44.Limitation period for recovering the debt by
b. Guarantor only exercising the right of lien, set-off or selling the
c. Both Borrower and Guarantor goods pledged to bank which does not involve
d. None of the above filing of suits
37.Who is not competent to execute a a. 3 Years
document b. 12 Years
a. minors, c. 30 years
b. lunatics and d. None of the above
c. undischarged insolvents 45.scrutinizing the documents means
d. All of the above a) All necessary documents have been obtained.
38.The Indian Stamp Act came into force in the b) The documents are properly stamped.
year c) Deletions, insertions and alterations, if any,
a. 1900 are to be duly authenticated by full signatures.
b. 1901 d) The documents are properly filled and
c. 1899 complete in all respects.
d. 1898 e) All of the above
39.Precautions to be taken at time of filing and 46.Revival letter (F 301) meant for the
Execution of documents borrowers should be obtained from them for all
a) to be filled up neatly with indelible ink or its types of borrowal accounts
types ……………………………………………………………. from
b) to be executed in the presence of Manager or the date of loan documents / Alast revival letter.
authorized official a. after 28 months from the date of loan
c) to be got completed in one sitting in the same documents / last Revival letter, but before expiry
hand writing using the same ink and pen of 3 years
d) All of the above b. after 27 months from the date of loan
40.Some documents are required to be documents / last Revival letter, but before expiry
compulsorily attested of 3 years
a) Mortgage deed, c. after 30 months from the date of loan
b) Gift deed, documents / last Revival letter, but before expiry
c) Sale deed, or Will or Power of Attorney of 3 years
d) All of the above d. None of the above

36
47.Eligibility for becoming witness at time of a. The Profit and Loss Account starts with gross
execution of documents by blind person. The profit on the credit side.
witness may be…………………. b. If there is gross loss it will be written on the
a. another customer who is a related to blind debit side of the Profit and Loss Account.
person c. The revenue expenses and losses which are
b. a person known to the bank but not related to related to the current year are debited to the
the blind person Profit and Loss Account.
c. A person related to the blind person. d. All of the above
d. All of the above 55.Characteristics of the CASH FLOW
48.Who is not eligible for becoming witness at STATEMENT are ……………..
time of execution of documents by blind person. a. Financial statement that shows how changes
a. another customer in the balance sheet account and income affect
b. person known to the bank but not related to cash and cash equivalents.
the blind person b. It breaks the analysis down to Operating,
c. A person related to the blind person. Investing and Financing Activities
d. Staff members c. Both a & b
49.Accounting may be defined as the process of d. None of the above
a. recording, 56.Valuation of Stocks are done as per
b. classifying, applicable Accounting Standard
c. summarizing, a. AS-2
d. analyzing and interpreting b. AS-3
e. All of the above c. AS-4
50.Business transactions of a financial character d. AS-10
are recorded in a book called…………………. 57.Goodwill is recorded in the balance sheet as
a. Journal a. Tangible Fixed Assets
b. Ledgers b. Investments
c. Balance sheet c. Intangibles
d. None of the above d. None of the above
51.The book containing classified information is 58.On Intangible assets it is generally charged
called a. Depreciation
a. Journal b. Amortization
b. Ledgers c. Both a & b
c. Balance sheet d. None of the above
d. None of the above 59.Advance Taken from proposed buyer will be
52.Sub fields of accounting are classified as
…………………………… a. Long Term Loans
a. Financial Accounting, b. Current Liabilities
b. Management Accounting, c. Both a & b
c. Cost Accounting, d. None of the above
d. Social Responsibility Accounting, and Human 60.Which of the following assets are not
Resource Accounting. recorded in the Balance Sheet but recorded on
e. All of the above the foot note of the Balance Sheet?
53.Characteristics of the Balance Sheet are as a. Tangible Fixed Assets
under: b. Investments
a) It is prepared at particular date. It is true only c. Intangibles
on that date and not later. d. Contingent Assets
b) The Balance sheet is prepared only after 61.There are …………………. methods of
preparation of the Profit and Loss Account accounting applicable in case of Partnership
(including the Trading Account). Accounts …………….
c) Both a & b a) 2
d) None of the above b) 3
54.Characteristics of the PROFIT AND LOSS c) 4
ACCOUNT are ……………….. d) 5

37
62.Financial Statements as per section 2(40) of d. 36
the companies Act 2013, inter –alia-include 70.Book Profit higher than the Taxable Profit. It
a) A balance sheet as at the end of the Financial will result as………….
Year, a. Pay Less Tax Now
b) A profit and loss account, or b. Pay more Tax in future
c) Cash flow statement for the financial year c. Create Deferred Tax Liability
d) A Statement of changes in equity, if applicable d. All are correct
and 71.Book Profit less than the Taxable Profit. It will
e) any explanatory not annexed to, or forming result as………….
part of, any document a. Pay More Tax Now
f) all of the above b. Pay less Tax in future
63.As per section ………………………. of the c. Create Deferred Tax Assets
companies Act, It is mandatory to comply with d. All are correct
accounting standards notified by the Central 72.Project appraisal is a systematic and
Government from time to time comprehensive review of
a. 127 a. Technical,
b. 128 b. Managerial,
c. 129 c. Financial,
d. 130 d. All of the above
e. 131 73.What is Term Loan?
64.Revenue Recognition is guided by a. A Source of Finance
AS……………… b. for the purpose of acquiring new assets or
a. 1 c. for improvement of existing assets
b. 5 d. All of the above
c. 9 74.Term Loan Analysis helps in ….
d. 15 a. Checking the actual requirement of the
65.The Corresponding IND AS of AS 15 will be borrower
a. IND AS 1 b. Evaluating the capacity of the borrower.
b. IND AS 8 c. Evaluating the Potential of the Project by
c. IND AS 18 applying different techniques like Pay Back
d. IND AS 19 Period, Average Rate of Return, NPV, IRR.
66.The Corresponding IND AS of AS 18 will be d. Fixing the Terms of Repayment
a. IND AS 1 e. All of the above
b. IND AS 8 75.The Projects requiring finance may be
c. IND AS 24 divided into following categories
d. IND AS 19 a) New Projects, Expansion Projects
67.The Corresponding IND AS of AS 22 will be b) Diversification Projects,
a. IND AS 1 c) Backward Integration Projects, Forward
b. IND AS 8 Integration Projects
c. IND AS 12 d) All of the above
d. IND AS 18 76.Market Appraisal also deals with
68.Ratios which are purely calculated on the a) Pricing Policy
figure of Balance Sheet are b) Depth of Competition
a) Current Ratio c) Life Cycle of the Product
b) Quick Ratio d) All of the above
c) Equity Ratio 77.Capital cost of the Project include
d) All of the above a) Land and site development cost, Buildings,
69.Any amount payable in the next Plant and Machinery
………………………months is treated as part of b) Engineering and Consultancy Fees,
current liability Miscellaneous Fixed Assets
a. 18 c) Preliminary and Pre -Operative expenses,
b. 12 Provision for Contingencies
c. 24 d) All are correct

38
78.Method suggested for evaluating the a) 2.40 Lac
profitability of the industrial projects b) 1.20 Lac
a) Payback method c) 0.40 Lac
b) Average rate of return method d) None
c) Net present value method 84) In a Balance sheet, amount of total assets is
d) Internal Rate of Return Rs.10.00 lac, current liabilities Rs.5.00 lac and
e) All of the above capital and reserves Rs.2.00 lac. What will be the
79.Characteristics of Internal Rate of Return debt equity ratio?
a) Internal rate of return is the rate of discount a) 1:1
which would equal the present value of b) 1.5:1
investment to the present value of benefits over c) 2:1
the life of the project. d) None
b) Internal rate of return cannot be determined 85) The Degree of Solvency of two firms can be
by just looking at the cash flow it is calculated by compared by measuring
trial and error method of discounted rates are a) Networth
applied to net cash flow until it is found that b) Tangible Networth
reduces the net present value to ZERO c) Current Ratio
c) Usually cut of rate is chosen as the starting d) Solvency Ratio
point if net present value at the cut-off rate 86) Liquidity is a measure of
comes positive the internal rate of return is for a) Short Term solvency
the calculated by increasing the discounting rate b) High Stock Turnover
d) All of the above c) Net Working Capital
80.Limitation of payback period Method are d) Long Term Solvency
a) The calculation of payback period is simple 87) Net working capital is find out by
but it ignores the time value of money. a) CL-CA
b) It does not take into account the income b) Long term Source – Long term use of Fund
which may be received beyond the payback c) Net Worth- Outside Liabilities
period. d) a or b
c) Sometimes a project having higher payback 88) The Net working capital is contributed by
period me be better than lower payback period a) Current Assets
going to have returned after payback period b) Long Term Source
d) All are the correct c) Networth-Outside Liabilities
81) Total Current Assets of a firm are Rs. 32.00 d) a or b
lac and the Net Working Capital is Rs.8 lacs. The 89) The term “Liquid Surplus” refers to
Current ratio is: a) Net Working Capital
a) 1.17 :1 b) Tangible Net Worth
b) 1.25 :1 c) Excess Current Assets over Current Liability
c) 1.33 :1 d) a or c
d) 1.50:1 90) Average creditors outstanding is Rs. 40,000.
82) The long term use is 125% of long term Total Credit purchases during the year is
source, this indicate the unit has Rs.8.00lac. Creditors velocity in month will be
a) 1.2 :1 a) 0.60 month
b) Negative TNW b) 0.50 month
c) Low Capital c) 0.75 month
d) Negative NWC d) 1 month
83) The perusal of Balance sheet reveals that the
current ratio is 3:1. The net working capital is Rs.
80,000. The Current Assets will be

39
 Answers:

Q A Q A Q A Q A Q A Q A
46 B 61 A 76 D
1 B 16 B 31 A
47 B 62 F 77 D
2 B 17 C 32 A
3 A 18 B 33 C 48 D 63 C 78 E
49 E 64 C 79 D
4 A 19 A 34 A
5 C 20 C 35 D 50 A 65 D 80 D

6 C 21 C 36 C 51 B 66 C 81 C

7 A 22 A 37 D 52 E 67 C 82 D

8 A 23 A 38 A 53 C 68 D 83 B

9 C 24 C 39 D 54 D 69 B 84 D

10 C 25 C 40 D 55 C 70 D 85 D

11 B 26 C 41 A 56 A 71 D 86 A

12 B 27 C 42 B 57 C 72 D 87 B

13 A 28 C 43 A 58 B 73 D 88 B

14 C 29 D 44 D 59 B 74 E 89 D

15 A 30 C 45 E 60 D 75 D 90 A

40
 Retail Credit
1. What is the maximum loan amount that d) 120 months
can be sanctioned under LAP? 8. What are the vehicles that can be financed
a) 2 Crore under Vehicle loan scheme?
b) 3 crore a) New two wheelers
c) 5 crore b) New Four wheelers
d) 10 crore c) Used cars
e) None of these d) New Electric four wheelers
2. What is the maximum Repayment Period e) All the above
for the loan amount of Rs.10 crores under 9. The maximum age limit for availing Vehicle
LAP Scheme? loan is?
a) 60 months a) 60 years
b) 84 months b) 65 years
c) 120 months c) 70 years
d) 180 months d) No age limit
3. For Special Interest concession of 1% under 10. The Margin prescribed for purchase of New
LAP Scheme, the required CIC Score is? Electric Four wheeler under Vehicle loan
a) 700 scheme is?
b) 750 a) 5%
c) 800 b) 10%
d) 850 c) 15%
e) 900 d) 20%
4. Under our Bank Personal Scheme, for the e) 25%
purpose of eligibility, Employees working in 11. For our existing Housing loan customer
Railways having salary account with some with good track record and CIC score is 800
other bank are categorized under? and above, the special interest rate
a) Category A concession provided for vehicle loan is?
b) Category B a) 0.25%
c) Category C b) 0.50%
d) Category D c) 0.75%
5. For availing Personal loan there should be d) 1.00%
regular salary credit for a minimum period 12. The minimum limit that can be sanctioned
of? under Subhagruha Cash Credit scheme is?
a) 3 months a) Rs.5 lakhs
b) 6 months b) Rs.10.00 lakhs
c) 12 months c) Rs.20.00 lakhs
d) 24 months d) Rs.25.00 lakhs
6. Under Personal Loan scheme, the number e) No minimum ceiling
of personal guarantee insisted for Category 13. Category of customers eligible for
a Borrower Employees is? Subhagruha Cash Credit limit is?
a) Single third party guarantee a) Salaried customers
b) Two third party guarantee b) Business men
c) Three third party guarantee c) Self-employed Business professionals
d) No third party guarantee d) NRI Customers
7. The maximum repayment period for e) All the above
Personal loan is? 14. The quantum of loan that can be used for
a) 60 months purchase of plot in metro areas under the
b) 72 months loan given for purchase of plot &
c) 84 months construction in Subhagruha scheme?

41
 a) 30% of fair market value/ purchase d) Abroad study – Master degree course
price/ housing loan amount whichever e) All the above
is lower 20. The annual income ceiling for OBC
b) 40% of fair market value/ purchase candidates for eligibility of subsidy under
price/ housing loan amount whichever Dr. Ambedkar Central sector scheme of
is lower Interest subsidy?
c) 50% of fair market value/ purchase a) Rs.4.50 lakhs
price/ housing loan amount whichever b) Rs.6.00 lakhs
is lower c) Rs.8.00 lakhs
d) 60% of fair market value/ purchase d) Rs.12.00 lakhs
price/ housing loan amount whichever 21. The annual income of the household for
is lower getting Interest subsidy under PMAY for
15. The maximum total cost of amenities that MIG-I category is?
can be included in the project cost of a) Up to Rs.3.00 lakhs
Housing loan is? b) Above Rs.3.00 lakhs & up to Rs.6.00
a) Rs.10 lakhs lakhs
b) Rs.20 lakhs c) Above Rs.6.00 lakhs & up to Rs.12.00
c) Rs.25 lakhs lakhs
d) Rs.30 lakhs d) Above Rs.12.00 lakhs & up to Rs.18.00
16. The minimum CIBIL Score prescribed for lakhs
considering application of takeover of Top- 22. The carpet area requirement of dwelling
up loan along with Housing loan is? unit for the eligibility of subsidy under
a) 600 PMAY for MIG-II category is?
b) 650 a) 30 sq.mt
c) 700 b) 60 sq.mt
d) 750 c) 160 sq.mt
e) 800 d) 200 sq.mt
17. Our existing Housing loan customer is 23. Maximum how many loans can be
eligible for Top-up loan having satisfactory sanctioned under IOB Home advantage?
repayment for a minimum period of ___ a) 2 loans
after completion of Holiday period is? b) 3 loans
a) 6 months c) 5 loans
b) 12 months d) No ceiling
c) 24 months 24. The weightage for CIC Score under Retail
d) 36 months Credit scoring model is?
18. The Education loan borrowers eligible for a) 25%
subsidy under Padho Pradesh Interest b) 50%]
subsidy scheme are? c) 10%
a) SC/ST Category d) 5%
b) Minority communities 25. Margin prescribed for loan under Home
c) OBC Décor scheme is?
d) EBC a) 10%
e) All the above b) 15%
19. Courses eligible for interest subsidy under c) 20%
Padho Pradesh Interest subsidy scheme d) 25%
are? 26. The collateral security coverage for
a) Inland study – graduation education loan under IOB Scholar for the
b) Inland study – Master degree course loan amount of Rs.50 lakhs for abroad
c) Abroad study – graduation study is?

42
 a) 50% c) Rs.1,50,000/-
b) 100% d) Rs.2,00,000/-
c) 125% 29. The maximum quantum of loan under Elite
d) 150% Consumer Durable loan is?
e) 200% a) Rs.15.00 lakhs
27. The maximum quantum of loan under IOB b) Rs.20.00 lakhs
career Dream is? c) Rs.25.00 lakhs
a) Rs.2.00 lakhs d) No ceiling
b) Rs.3.00 lakhs 30. The maximum age limit for Reverse
c) Rs.5.00 lakhs Mortgage loan is?
d) Rs.10.00 lakhs a) 70 years
e) No ceiling b) 75 years
28. The maximum quantum of loan under Skill c) 80 years
Development loan is? d) 85 years
a) Rs. 50,000/- e) No ceiling limit
b) Rs.1,00,000/-
Answer:

Q A Q A Q A Q A Q A
1 D 7 C 13 A 19 D 25 D
2 D 8 E 14 D 20 C 26 C
3 C 9 C 15 C 21 C 27 A
4 A 10 B 16 C 22 D 28 C
5 B 11 B 17 B 23 B 29 C
6 D 12 C 18 B 24 B 30 E

43
 Agriculture Credit
1. Up to what amount Agriculture Loans can 7. What is the maximum repayment period
be sanctioned without insisting of collateral for the purchase of four wheelers under
Security and Margin? Agri Transport Scheme?
f) 1.0 lakh a) 5 years
g) 1.60 lakh b) 7 years
h) 3.00 lakhs c) 10 years
i) 10.00 lakhs d) 3 years
j) None of these e) None of these
2. Up to what amount Agriculture Loans can 8. What is the maximum loan amount can be
be sanctioned without insisting of collateral sanctioned under IOB Warehouse Receipt
Security under Tie-up arrangement? finance against NWR/e-NWR?
e) 1.0 lakh a) 10.0 lakh
f) 1.60 lakh b) 25.00 lakh
g) 3.00 lakh for short term credit & 3.00 c) 50.00 lakhs
lakh for Term Loan d) 75.00 lakhs
h) None of these e) None of these
3. Up to what amount SHG Loans can be 9. What is the maximum repayment period
sanctioned without insisting of collateral under IOB Warehouse Receipt finance?
Security? a) 12 months
a) 1.0 lakh b) 24 months
b) 1.60 lakh c) 36 months
c) 3.00 lakhs d) 60 months
d) 10.00 lakhs e) None of these
e) 20.00 lakhs 10. Under AHIDF the quantum of loan that can
4. What is the maximum loan amount can be be sanctioned for Medium Enterprises?
sanctioned under IOB Krishi Samridhi a) 90% of the project cost
Scheme? b) 85% of the project cost
a) 10.0 lakh c) 75% of the project cost
b) 25.00 lakh d) 60% of the project cost
c) 30.00 lakhs 11. Under AHIDF, interest subvention provided
d) 50.00 lakhs for eligible entities by Dept. of Animal
e) None of these Husbandry and Dairying is?
5. Up to what amount Loans can be a) 3%
sanctioned under Agri Transport Scheme b) 4%
without insisting of collateral Security for c) 5%
our existing agriculture loan borrowers? d) 6%
a) 1.0 lakh 12. Under Agriculture Infrastructure Fund,
b) 1.60 lakh activities that can be financed are?
c) 3.00 lakhs a) e-Marketing Platforms
d) 5.00 lakhs b) Warehouses
e) None of these c) Primary Processing centers
6. What are the vehicles can be financed d) Ripening chambers
under Agri Transport Scheme? e) All the above
a) Tractors 13. The maximum tenure of loan under
b) Power tillers Agriculture Infrastructure fund is?
c) Harvesters a) 5 years
d) Agriculture implements b) 7 years
e) None of these c) 9 years

44
 d) 12 years 21. Under SHG linkage, out of the loan amount,
14. The maximum quantum of loan under IOB at least ___% of loan amount to be used
Swarnalakshmi? primarily for income generating productive
a) 3 lakhs purposes for the loans above Rs.6 lakhs?
b) 5 lakhs a) 50%
c) 10 lakhs b) 60%
d) 25 lakhs c) 75%
15. PM KUSUM – expansion d) 85%
a) Pradhan Mantri Kisan Urja Suraksha 22. For Digging of Bore wells and Tube wells,
Evam Utthan Mahabhiyan the economic land holding requirement is?
b) Prime Minister Kisan Urja Suraksha a) 3 acres
Evam Utthan Mahabhiyan b) 4 acres
c) Pradhan Mantri Kisan Urja Suraksha c) 5 to 10 acres
Utthan Mahabhiyan d) 1 acre
d) Prime Minister Kisan Urja Suraksha 23. The Maximum moratorium period for
Utthan Mahabhiyan Digging of well under Minor Irrigation loan
16. Agriculture activities that can be financed is?
under PMMY? a) 6 months
a) Loans to Tractors & power tillers b) 12 months
b) Allied activities like dairy, poultry etc. c) 18 months
c) Agri Clinics & Agri Business Centers, d) 23 months
Food & agro processing units 24. The maximum repayment period for
d) All of the above purchase of Tractor under Farm
17. The Margin is not insisted up to what Mechanization loan is?
amount for agriculture activities under a) 5 years
PMMY? b) 7 years
a) Rs. 50,000/- c) 9 years
b) Rs.1,00,000/- d) 12 years
c) Rrs.1,60,000/- 25. Under PMFBY, Localized Calamities
d) Rs.3,00,000/- include?
18. The maximum repayment period under a) Loss/ Damage due to Hailstorms
PMMY is? b) Loss/ Damage due to Landslide
a) 5 years c) Loss/ Damage due to inundation
b) 7 years d) Loss/ Damage due to clod burst
c) 10 years e) All of the above
d) 12 years 26. What is the maximum loan amount under
19. The Scheme for financing for construction Term Loans to MFIs?
of Household toilets is? a) 10 crore
a) PM KUSUM b) 25 crore
b) IOB Swach bharat c) 50 crore
c) IOB Swachta d) 100 crore
d) PM Swachtha 27. The eligibility criteria for NBFCs under co-
20. The Maximum loan amount that can be lending Model?
sanctioned to SHG under 2nd linkage? a) Registered with RBI and in operations
a) Rs.4,00,000/- for more than 4 years
b) Rs.8,00,000/- b) Net Worth more than Rs.200 crores
c) Rs.16,00,000/- c) In preceding 2 years, Net NPA is below
d) Rs.20,00,000/- 2.50% and Gross NPA is below 5% in
each year

45
 d) CRAR should be 15% a) 0.5%
e) All of the above b) 0.25%
28. The maximum quantum of loan under IOB c) 0.75%
Kisan Tatkal scheme is? d) 1.0%
a) Rs. 50,000/- 30. The maximum loan amount under Term
b) 50% of KCC Limit Loan against Jewelry is?
c) 25% of Annual Income a) Rs.5 lakhs
d) Least of the above b) Rs.10 lakhs
29. Under IOB Boomi Shakthi Scheme, Interest c) Rs.15 lakhs
rate concession for loans above Rs. d) Rs.25 lakhs
50,000/- is?
Answer:

Q A Q A Q A Q A Q A
1 B 7 C 13 B 19 C 25 E
2 C 8 D 14 B 20 B 26 D
3 E 9 A 15 A 21 D 27 E
4 B 10 B 16 D 22 C 28 D
5 D 11 A 17 A 23 D 29 B
6 E 12 E 18 D 24 C 30 D

46
 Government Sponsored Schemes

1.Name the implementing agency of PMEGP at c) 100 lacs

national level? d) 10 lacs
a) KVIC e) None of above
b) KVIB 7. Which among the following in incorrect regarding
c) NABARD to 2nd financial assistance under PMEGP?
d) RBI a) Unit should be making profit for last
e) NONE OF ABOVE 3 years
2. What is minimum educational qualification b) registration under Udyog Aadhaar is not
required for a service project of Rs.5lac under mandatory
PMEGP? c) 2nd loan should lead to additional
a) 10th pass employment
b) 8th pass d) all are correct
c) 5th pass e) all are incorrect
d) 12th pass 8. Which among the following is not under negative
e) no education qualification required list under PMEGP?
3. What is rate of subsidy in percentage available for a) MEAT PROCESSING
special category in rural for PMEGP Loans? b) manufacturing of beedi/cigarette
a) 10 c) poultry
b) 15 d) a & b
c) 25 e) all of above are under negative list
d) 35 9. Under self help group how much maximum cash
e) No subsidy for rural areas credit be given in 1st dose?
4. How much margin a person in special category in a) 4times of existing savings/ corpus
rural area has to bring for manufacturing project b) 6 times of existing savings/ corpus with maximum
under PMEGP? of Rs.4 lacs
a)5 c) 2 lacs
b) 10 d) 2.25lacs
c) 15 e) 4times of savings with maximum of Rs.2.25lacs
d) 20 10. How much maximum loan can be granted to a
e) No margin in rural area single self help group?
5. How much is the lock in period for subsidy under A) Rs.5 lac
PMEGP Scheme? b) Rs.20 lac
a)1 year c) Rs. 50lacs
b) 2year d) Rs.2 lacs
c) 3year e) None of above
d) 5year 11. Under direct linkage program for self help groups
e) NONE OF ABOVE what is minimum score required for giving loan?
6. What is maximum project cost under a)50
manufacturing that can be considered for b) 60
upgradation in PMEGP for 2nd financial assistance? c) 90
a)25 lacs d) 100
b) 50 lacs e) 30

47
12. What should be the maximum number of b) 5 % simple
members in a SHG at any point of time? c) 4% monthly compounding
a) 10 d) MCLR
b) 20 e) MCLR+0.5
c) 5 19. What is maximum loan amount under the
d) 50 scheme for rehabilitation of manual scavengers?
e) none of above a)5lac
13. What is margin in percentage for loans granted b) 2lac
to SHGs? c) 10lac
a) 5 d) 20lac
b) 10 e) 1lac
c) 15 20. Under scheme for rehabilitation of manual
d) 20 scavengers in case of misuse of funds the borrower
e) NIL has to return back the subsidy at what rate of
14. What is maximum repayment period of term interest?
loan financed under PMEGP? a)4% simple
a)5years b) 5% per annum
b) 7years c) 9% per annum
c) 8years d) MCLR
d) 10years e) base rate
e) None of above 21. What is maximum loan amount under weaver’s
15. What is margin money in percentage for loan up credit card scheme?
to Rs50000/- under NULM? a)1LAC
a)5 b) 2LAC
b) 10 c) 5LAC
c) 15 d) 10lacs
d) 20 e) 25LAC
e) nil 22. Under PMAY for MIG1 (middle income group1 )
16. What is maximum loan that can be given under how much interest subsidy in percentage available?
DRI to general category borrower? a)4
a)10000 b) 3
b) 15000 c) 5
c) 20000 d) 7
d) 50000 e) None of the above
e) 25000 23. What is maximum dwelling unit area for LIG (low
17. What is maximum loan that can be given to income group) for which subsidy is available under
SC/ST under DRI for constructing house? PMAY?
a)10000 a)30 sq. meter
b) 15000 b) 60 sq. meter
c) 20000 c) 120 sq. meter
d) 50000 d) 160 sq. meter
e) 25000 e) 200 sq. meter
18. What is rate of interest in DRI Loans?
a) 4% simple

48
24. Under PMAY What is maximum annual a) 10 lac
household income per annum to be considered b) 15 lac
under EWS (economically weaker section)? c) 25 lac
a) up to 1 lac d) 100 lac
b) up to 2 lac e) None of the above
c) up to 3 lac 28. Ministry of Rural Development, Govt of India
d) up to 5 lac launched…………., by restructuring SGSY Scheme
e) up to 10 lac a) NRLM (Aajeevika)
25. What is maximum repayment period under DRI b) NULM
loans? c) PMEGP
a)3years d) SHGs
b) 5years e) None of the above
c) 7years 29. Bank (Financial Creditors) can file application in
d) 10years NCLT under
e) None of above a. Sec 7 of IBC
b. Sec 8 of IBC
26. Bank has introduced the SHG online processing c. Sec 10 of IBC
for proposals up to Rs. …. d. None of the above
a) 2 lac 30. Which of the following dues ranks prior to
b) 5 lac Financial Creditors’ dues in waterfall mechanism
c) 10 lac under IBC
d) 20 lac a. Govt Dues
e) None of these b. Tax Dues
27. For 2nd loan under PMEGP, Maximum cost of c. CIRP Cost
project under service / trading sector for upgradation d. Both A & B
is Rs ….
Answer Keys:

Q. No Ans Q. No Ans Q. No Ans Q. No Ans Q. No Ans

1 A 7 B 13 E 19 C 25 B
2 B 8 E 14 B 20 C 26 D
3 D 9 B 15 E 21 B 27 D
4 A 10 B 16 B 22 A 28 A
5 C 11 B 17 C 23 B 29 A
6 C 12 B 18 A 24 C 30 C

49
 MSME
1. Which of the following portal is launched to 7. What does R stand for in MUDRA?
monitor Public Procurement from MSEs by a) Return
Central Public Sector Enterprises (CPSEs)? b) Risk
a) ASPIRE c) Refinance
b) SME SAMADHAN d) Ratio
c) SME SAMPARK e) None of the above
d) SFURTI 8. What is the maximum limit of loans that Micro
e) None of the above Finance Institutions can give under the MUDRA
2. Any reverse graduation in the MSME Yojana?
classification will be effective ______? a) 5 lakhs
a) One year after the year of registration b) 1 lakh
b) From the beginning of the next calendar year c) 50000
c) From the beginning of the next financial year d) 2 lakhs
d) Immediately from the date of reverse graduation e) None of the above
e) None of these 9. Which of the following activities can't be financed
3. For which of the following, Mudra loan can't be under MUDRA scheme?
sanctioned? a) Purchase of Transport Vehicle
a) Manufacturing activity b) Food Product Sector
b) Service activity c) Textile sector
c) Retail Trade activity d) Agri allied activities
d) Agri-allied activities e) None of the above
e) None of the above 10. Which of the following is true about Kishore
4. CMA data along with Audited balance sheet is to loan?
be called for working capital limits ___. a) Loans above Rs. 50000 and up to Rs. 2 lakhs
a) Above 2 crore b) Loans above Rs. 50000 and up to Rs. 5 lakhs
b) Above 1 crore c) Loans of Rs. 50000 and above up to Rs. 5 lakhs
c) 1crore and above d) Loans Rs. 50000 and above up to Rs. 5 lakhs
d) 2 crores and above e) None of the above
e) None of the above 11. Which of the following can't grant loans under
5. What is the Credit Guarantee scheme available MUDRA Yojana?
for financing equity infusion to NPA borrowers a) Private Sector Banks
which was standard and performing as on b) Foreign Banks functioning in India
31.03.2018 and eligible for the restructuring? c) Micro Finance Institutions
a) CGTMSE d) Payment Banks
b) CGFMU e) All can grant loans under Mudra scheme
c) CGSSI 12. If a SME unit us started with land and building
d) CGSSD cost Rs. 5 crore and Plant and machinery cost Rs.
e) CGSCL 4.50 crore and pre-operative expenses of Rs. 50
6. What is the maximum loan that can be financed lakhs, then the unit will be classified as ___.
under Co-lending model of Credit Guarantee a) Small Manufacturing
scheme? b) Micro Manufacturing
a) 100 lacs c) Micro Services
b) 200 lacs d) Small Services
c) 50 lacs e) Data insufficient
d) 10 lacs
e) None of these

50
13. As per the new criteria of classification proposed e) Simple interest on the amount at 4% above bank
for MSME, what is the Small manufacturing unit. rate
a) The manufacturing units having turnover of more f) None of the above
than 1 crore and up to 2 crores. 18. What is F stands for in MSEFC?
b) The manufacturing units having turnover of more a) Felicitation
than 5 crores and up to 25 crores. b) Facilitation
c) The manufacturing units having turnover of more c) Factory
than 5crore and up to 75 crores. d) Facility
d) The manufacturing units having turnover of more e) Facilitated
than 25 crores and up to 75 crores. 19. A supplier wants to appeal against MSEFC award
e) The manufacturing having turnover of more than for delayed payment at higher court. What is the
25 crores and up to 100 crores. minimum of deposit has to be deposited in court?
14. As priority sector guideline, which of the a) 75% of the delayed payment amount
following/s is/are true? b) 75% on the MSEFC award amount
a) 20 per cent year-on-year growth in credit to c) 50% of the delayed payment amount
micro and small enterprises d) 50% on the MSEFC award amount
b) 10 per cent annual growth in the number of e) No Appeal against award available for supplier
micro enterprise accounts 20. Which of the following is incorrect related to TEV
c) 60 per cent of total lending to MSE sector as on study?
31st March of previous year to Micro enterprises a) TEV study is applicable for green field advances of
d) 7.5% of ANBC or CEOBE whichever is higher project above 25 crore
should go to Micro unit b) TEV study is applicable for consortium advances
e) All of the above of project above 50 crore
15. As per MSME guideline, composite loan up to c) TEV study is applicable for restructuring of
____ can be extended to a SME unit under single advances of Rs. 5 crores and above
window. d) All of the above
a) Rs. 2 crore e) None of the above
b) Rs. 1 crore 21. As per SME policy of the bank, the desired DSCR
c) Rs. 50 lakhs for every year should be minimum ____ for SME
d) Rs. 25 lakhs units.
e) Rs. 10 lakhs a) 1.50
16. Banks has to establish a SME Specialized branch b) 2.00
in each District, also banks are permitted to c) 1.33
classify the branch as SME special if the ____ % d) 1.25
of loan portfolio is MSME. e) 1.20
a) 25% 22. What is R stands for in TReDS?
b) 51% a) Refinancing
c) 60% b) Receivables
d) 75% c) Revival
e) 80% d) Rediscounting
17. For MSME units, delayed payment beyond 45 e) None of the above
days, what is the interest rate the buyer is liable 23. As per the recent government guidelines, all the
to pay? public sector companies to compulsorily procure
a) 3% above Bank rate, Monthly compounding 25% from MSME units. Out of 25%, ___ should be
b) 4% above Bank rate, Monthly compounding reserved for women entrepreneurs.
c) 3 times of bank rate, Monthly compounding a) 5%
d) Simple interest on the amount at 3% above bank b) 1%
rate c) 2%

51
d) 3% a) 60 days
e) 4% b) 30 days
24. As per the recent government guidelines, all the c) 45 days
public sector companies to compulsorily procure d) 90 days
25% from MSME units. Out of 25%, ___ should be e) 180 days
reserved for SC/ST entrepreneurs. 28. What is the minimum amount of MSME loan that
a) 5% can be applied under psbloansin59minutes.com?
b) 1% a) 5 Cr
c) 2% b) 1 Cr
d) 3% c) 1 lakh
e) 4% d) 5 lakhs
25. As per the MSME guidelines, loans up to ___ e) None of the above
amount can be financed to MSME units having 29. Branch Managers are empowered to give excess
good track record without collateral security. to MSME borrower also, which statement is
a) 10 lakhs correct?
b) 2 crore a) Yes, BM is empowered as per Kapoor committee
c) 25 lakhs b) Yes, BM is empowered as per Ghosh committee
d) 100 lakhs c) No, BM is not empowered to give excess as per
e) None of these LPD, it will be sanctioned by RLCC
26. Maximum loan of ___ amount can be financed to d) Yes, BM is empowered to give excess as per LPD,
nonfarm entrepreneurs under GCC scheme? subject to strict compliance
a) 1 lakh e) Option 1 and 4 is correct
b) 5 lakhs 30. Branch Managers are empowered to give ADHOC
c) 10 lakhs to MSME borrower as per which committee?
d) 50000 a) Talwar Committee
e) None of the above b) Ghosh Committee
27. In case no agreement available between the c) Damodaran Committee
buyer and seller, what is the by default period of d) Kapoor Committee
payment as per the MSMED act 2006? e) Bimal jalan Committee
Answer:
Q A Q A Q A Q A Q A Q A
1 E 6 B 11 D 16 C 21 E 26 A
2 C 7 C 12 E 17 C 22 B 27 C
3 E 8 B 13 B 18 B 23 D 28 C
4 D 9 E 14 E 19 E 24 E 29 C
5 D 10 B 15 B 20 E 25 C 30 D

52
 Credit Guarantee Schemes
1. Maximum loan amount that can be covered d) 1.80
under CGTMSE now is Rs________ Lacs e) None of these.
a) 100 6. What is the max. guarantee cover available (in
b) 50 percentage) for MSE Retail trade segment from
c) 200 Rs? 10 lakhs to 100 lakhs per MSE borrower
d) 10 irrespective of the category of the borrower for
e) None of the above the fresh credit facilities sanctioned on or after
2. As per new modified AGF structure, the annual 01.04.2018?
guarantee fee would be calculated on a) 80
outstanding amount as on …………… in case of b) 60
Term Loan and Outstanding/ expected limit to c) 75
be availed by the borrower in case of working d) 50
capital limit. e) None of these.
a) 01st April 7. What is the max. Guarantee cover available
b) 31st march including enhanced portion under CGTMSE for
c) 31st December the credit facility of amount Rs.50lakh to 200
d) 1st January lakhs, where original sanctions are prior to
e) None of these. ` 01.04.2018 and enhancement in the limits are
3. The Annual Guarantee fee of …………percentage+ on or after this date?
Risk Premium as per extant guideline of trust, to a) 50
be paid in the case of credit facility from Rs. 5 b) 60
lakhs up to Rs. 50lakh sanctioned/renewed on or c) 75
after 01.04.2018 to women entrepreneurs. d) 80
a) 1 e) None of these.
b) 1.5 8. What is the max. Guarantee cover (in
c) 1.35 percentage) available under CGTMSE for the
d) 1.80 credit facility of amount Rs.50lakh to 200 lakhs,
e) None of these. sanctioned on or after 01.04.2018?
4. The Annual Guarantee fee of …………percentage a) 70
+ Risk Premium as per extant guideline of trust, b) 85
to be paid in the case of credit facility from Rs. 5 c) 75
lakhs up to Rs. 50lakh sanctioned/renewed on or d) 80
after 01.04.2018 to others. e) None of these.
a) 1 9. The Trust shall pay ----% of the guaranteed
b) 1.35 amount within 30 days.
c) 1.50 a) 70
d) 1.80 b) 80
e) None of these. c) 60
5. The Annual Guarantee fee of …………percentage+ d) 75
Risk Premium as per extant guideline of trust, to e) None of these.
be paid in the case of credit facility above Rs. 50 10. The guarantee start date is termed as
lakhs up to Rs. 200lakh sanctioned/renewed on a) commencement date
or after 01.04.2018 b) notional date
a) 1.00 c) specified date
b) 1.35 d) material date
c) 1.50 e) None of these.

53
11. Initiation of legal proceedings as a pre-condition c) Loan granted to MSE Retail Trade Segment to
for invoking of guarantee shall be waived for Rs. 100 lakh
credit facilities up to Rs….? d) Loan granted to Educational Institutions.
a) 25000 e) All of the above
b) 50000 17. Hybrid security means in CGTMSE?
c) 100000 a) Security consist of both immovable and movable
d) 30000 b) Security should be consisting of liquid and fixed
e) None of these. in nature
12. What is the max. guarantee(percentage) c) Security’s part value is covered under collateral
available for women entrepreneurs for credit and rest by CGTMSE
facility up to Rs.50 lakhs? d) B and C both
a) 70 e) None of these.
b) 60 18. Credit facility sanctioned after 01.04.2018,
c) 50 which is covered by Hybrid security, in this credit
d) 80 facility up to a maximum of Rs_____, can be
e) None of these. covered under CGTMSE and CGTMSE will have
13. What is the max. guarantee (percentage) ______ Charge over primary security?
available for general category borrowers for a) Rs100 lacs and Paripasu charge
credit facility up to Rs. 50 lakhs? b) Rs 200 lacs and Paripasu charge
a) 75 c) Rs 200 lacs and Secondary Charge
b) 60 d) Rs 100 lacs and secondary charge
c) 50 e) None of these.
d) 80 19. what is interest rate cap for the loan sanctioned
e) None of these. after 31.10.2018 under CGTMSE Scheme?
14. If any amount due to the Trust remains unpaid a) Bank rate +4%
beyond 30 days in claims paid account, then b) Interest rate should not be more than 14 %
interest shall be payable to the Trust at what c) The interest rate charged as per RBI guideline
rate of interest? would be eligible for coverage under CGS
a) Bank rate +4% d) B and C both are correct
b) Bank rate +3 e) None of these.
c) Bank rate +2 20. Customer approaches to your branch for loan of
d) Bank rate +1 Rs 5 lacs, business activity shows as retail trade,
e) Bank rate +5 insisting to grant a loan under CGS scheme.
15. When will the guarantee cover commence for Branch can sanction loan under ……….?
the eligible credit facility? a) Mudra
a) from the date on which guarantee fee is b) CGFMU
credited to the bank account of the Trust c) CGTMSE
b) from the date on which guarantee fee is d) Any of the above
remitted by the member bank e) None of these.
c) from the date on which guarantee fee is arrived 21. For credit facility sanctioned in a particular
at by the bank quarter, application for Guarantee Cover should
d) none of the above be lodged by the ______________.
e) Any of the above a) next quarter
16. Which of the following loan is eligible for b) next month
CGTMSE cover? c) Date of the sanction
a) Loan granted to SHG d) Date of Disbursement
b) Loan granted to KVIC e) None of these.

54
22. Under CGFMU, the first _____ % (percentage) of d) 2 years from the date of NPA or within 2 years
the amount in default will be borne by the Bank. from the expiry of lock in period
a) 3 e) 3 years from the date of NPA or within 3 years
b) 10 from the expiry of lock in period
c) 15 28. What is true, regarding CGTMSE?
d) 20 1. Credit Facility up to Rs.200 lakh covered since
e) 75 01/01/2017
23. The CGFMU shall pay the eligible claim amount 2. All fund but non-fund based facility not
on preferring of claims by the lending covered
institution, within _____ days, subject to the 3. Maximum Cover of up to 85% of credit facility
claim is being otherwise in order and complete for loan u to Rs5 lacs
in all respect 4. presently Guarantee coverage is 50% for
a) 30 credit facility above Rs.50 lakh
b) 45 5. Credit for educational / training institutions
c) 50 and SHGs are not eligible for coverage.
d) 60 a) 1, 2,3,5
e) 90 b) 1,3,5
24. The Maximum Interest Rate to be charged by c) 1,3,4,5
MLI on Stand Up India Loans should not in any d) 1,2,3,4
case, more than ____________ (in percentage) e) None of these.
a) 14 29. What is true, regarding CGTMSE?
b) base+4 a) CGTMSE is having pari-pasu charge on prime
c) Mclr+4 and collateral security
d) MCLR+3 b) CGTMSE is having secondary charge on prime
e) None of these. and collateral security
25. what will be the Guarantee extent for the loan c) CGTMSE is having pari-pasu charge on prime
cover under CGSSI of Rs. 90 lacs. and secondary charge collateral security
a) Rs. 57.5 lacs d) CGTMSE is having secondary charge on prime
b) Rs. 45 lacs and pari-pasu charge collateral security
c) Rs. 67.5 lacs e) None of these.
d) Rs. 60 lacs 30. CGTMSE guarantee will cover the following?
e) Rs. 65 lacs a) Term loans default amount inclusive of 2
26. what is the minimum & maximum Guarantee quarters interest
cover to be available under CEGSSC for b) Term loan default amount inclusive of Q1
registered companies? interest along with penal interest
a) Rs 25 Lacs to 100 lacs c) working capital facility – outstanding working
b) Rs 15 lacs to Rs 500 lacs capital advance (inclusive of the interest up to
c) Rs 25 lacs to Rs500 lacs the date of NPA) along with processing charges
d) Rs15 lacs to Rs100 lacs or commitment charges
e) Rs10 lacs to Rs500 lacs d) None of these.
27. what is maximum period for invocation of the e) All of the above
guarantee, Under CGSSI? 31. Mr. Ajay Kumar is having exposure of Rs. 75 lacs
a) 1 year from the date of NPA or within 1 years with your branch under CGTMSE and his plant is
from the expiry of lock in period not functional due to some temporary unrest in
b) 2 years from the date of NPA or within 1 years the locality (it is beyond the control of
from the expiry of lock in period Management) and classified as sick unit due to
c) 3 years from the date of NPA or within 2 years incurred loss equal to its entire net worth. Now
from the expiry of lock in period Mr. Ajay Kumar seeking the financial help from

55
 the bank and proposed planed is found very applicable to fresh credit facilities sanctioned by
much viable. Will bank give credit for MLIs on or after April 01, 2018
rehabilitation to the Mr. Ajay Kumar under a) Guaranteed, outstanding
CGTMSE? b) Outstanding Guaranteed
a) Existing loan become NPA so no new loan under c) Outstanding, outstanding
CGTMSE d) Guaranteed, Guaranteed
b) Earlier Loan was covered under CGTMSE, so e) None of these.
further credit can be extent it within the credit 36. AGF would be calculated for the CC on ____
cap of Rs200 lacs availed by the borrower, in the previous
c) CGTMSE will decide extended period of calendar year?
Guarantee and terms a) Peak working capital limit
d) Both b & c b) Average of the working capital outstanding
e) None of these. c) Balance as on 31 Dec.
32. when can the lender invoke the guarantee given d) Any of the above
by the trust in the respect of credit facility e) None of these.
advanced by it to the eligible borrower? 37. MLIs would be required to feed the aforesaid
a) On default of the loan account or On the recall data in the CGTMSE online portal by
of the loan account __________ every year.
b) after initiation of the recovery proceedings a) 15-Jan
under due process of law b) 31-Dec
c) after 18 months from the date of the last c) 15-Apr
disbursement of credit d) Second week of February
d) From the date of the guarantee cover coming e) None of these.
into force 38. AGF so demanded would be paid by the MLIs on
e) All of the above or before _______ each year
33. how much percentage of claim of the a) 15-Jan
guaranteed portion shall be generated from the b) 31-Dec
CGTMSE, as a first portion of the claim in case of c) 15-Apr
default? d) second week of February
a) 50 e) None of these.
b) 75 39. If the guaranteed account gets closed due to
c) 25 non-payment of AGF, on the request for revival
d) 85 of accounts, an additional risk premium of
e) None of these. ________% will be charged on the Standard
34. We have to pay AGF (Annual guarantee fees) till Rate in addition to the existing differential
a) Account has become NPA pricing structure and penal interest, if any. Penal
b) Till legal action has been initiated interest is ______.
c) Till the settlement of the 1st instalment of the a) 15 and Bank rate + 4%
claim b) 05 and Bank rate + 5%
d) Till next financial year c) 20 and Bank rate + 4%
e) None d) 10 and Bank rate + 4%
35. Guarantee fee will be charged on the _______ e) 15 and Bank rate + 5%
amount for the first year and on the 40. If recovery proceedings are initiated under
proportionate _________ amount subsequently SARFAESI Act, action as per Section of the Act,
resulting in lower guarantee fee charged to has to be taken.
MSEs. The above change of allowing partial a) 13(4)
collateral security under the ambit of Credit b) 13 (2)
Guarantee Scheme of CGTMSE shall be c) 14

56
d) 13 (3b) e) None of these.
e) None of these. 47. Guarantee fees for Micro unit in aspirational
41. What is the latest claim lodgment period in District will be _______ Percentage (First year)
CGTMSE? loan availed in FY 20-21 & 21-22?
a) 1 year a) 0.5
b) 2 year b) 1.0
c) 3 years c) 1.5
d) 4 years d) 2.0
e) None of these. e) 2.5
42. Final claim to be paid on conclusion of recovery 48. Every amount recovered and due to be paid to
proceedings by the MLI or after ____years of the CGFMU, shall be paid without delay, and if
obtention of decree of recovery whichever is any amount due to the Fund remains unpaid
earlier beyond a period of 30 days from the end of
a) 1 year ________ in which it was recovered from
b) 2 year Borrower?
c) 3 years a) FY
d) 4 years b) Next Quarter
e) None of these. c) Half year
43. Customer availed the loan of Rs 100 lacs under d) Month
CGSSI scheme and it has turned into NPA. e) None of these.
Present O/s of loan is Rs70 lacs, what will be the 49. What is the minimum margin (in percentage)
amount should be received as 1st claim in this from borrower to be maintained loan under
this loan? Stand up India, under CGSSI?
a) Rs. 37.5 lacs a) 25
b) Rs. 56.25 b) 20
c) Rs. 42 lacs c) 15
d) Rs. 45 lacs d) 10
e) None of these. e) None of these.
44. Loan given under CGSSI from above Rs.10 lacs to 50. Agri Allied activities with is properly classified
Rs. 50 lacs, guarantee extent is ____ percentage under Agri Allied, food & Agro with correct BSR
a) 85 code, and under scheme code- TLAGM/CCAGM
b) 80 for the purpose of Loans to tractors & power
c) 75 tillers under Agriculture advances. Allied
d) 50 activities under Agriculture, Agri Clinics & Agri
e) None of these. Business centres, Food & Agro processing units,
45. CGFMU is being managed and operated by will be covered under Mudra. Same account
____________ being established on 28.03.2014. may be covered under ...?
a) NCGTC a) CGTMSE
b) SIDBI b) CGFMU
c) RBI c) CGSSI
d) IBA d) CEGSSC
e) None of these. e) None of these.
46. what will be the loan Amount for SHG to be 51. What is the extent of guarantee coverage
covered under CGFMU? available for the 1st year of the finance to SHG
a) From Rs. 1 to Rs. 10 lacs firms under CGFMU?
b) From Rs. 1 lac to Rs. 10 lacs a) 75%
c) From Rs. 10 lacs to Rs. 20 lacs b) 100%
d) SHG can be covered under CGFMU c) 80%

57
d) 85% d) 20% of the fund based o/s limit as on
e) None of the above 31.03.2021
52. What is the moratorium period prescribed for e) None of the above.
the credit facilities extended under CGSSD? 54. What is the minimum that can be financed
a) 3 Years under CGSPMS II scheme?
b) 10 Years a) 5000
c) 7 Years b) 10000
d) 5 Years c) 15000
e) None of the above d) 20000
53. Under ECLGS 3 extension, what is the maximum e) None of the above
amount that can be financed? 55. Which of the following cannot be covered under
a) 20% of the fund based o/s limit as on CGTMSE?
31.03.2021 a) Loans to manufacturing units or Services units
b) 30% of the fund based o/s limit as on b) Loans to Retail trades & wholesale trades
31.03.2021 c) Loans to SHGs
c) 40% of the fund based o/s limit as on d) Loans to Educational and Training Institutes
31.03.2021 e) None of these

Answer:

Q A Q A Q A Q A Q A Q A
1 C 6 D 11 C 16 E 21 A 26 C
2 C 7 A 12 D 17 C 22 A 27 D
3 C 8 C 13 A 18 C 23 D 28 B
4 C 9 D 14 A 19 C 24 D 29 C
5 D 10 D 15 A 20 D 25 D 30 D

Q A Q A Q A Q A Q A
31 D 36 E 41 C 46 C 51 B
32 E 37 A 42 C 47 A 52 C
33 B 38 C 43 A 48 A 53 C
34 C 39 A 44 B 49 C 54 C
35 A 40 A 45 A 50 B 55 C

58
 ROC, Financial Inclusion BC Management, BG, Valuation Policy
1. What is the form to be used for registration or c) 60 days
modification of charge? d) 90 days
a) CHG 2 e) 120 days
b) CHG 3 7. What is the maximum time within which
c) CHG 4 registration of charge is allowed by the Registrar?
d) C HG 1 a) 30 days
e) CHG 9 b) 45 days
2. The Charge holder can apply for creation or c) 60 days
modification of charge, if the company fails to d) 90 days
register the charge within ……. Days? e) 120 days
a) 45 days 8. Registration of charges is not allowed beyond
b) 30 days ……. Days?
c) 15 days a) 120 days
d) 60 days b) 180 days
e) 90 days c) 270 days
3. In case the charge holder is making request for d) 90 days
creation or modification of charge, The Registrar e) 45 days
within of ……… days after giving notice to the 9. Satisfaction of charge is allowed by Registrar
company, allow such registration? within ……. Days on payment of normal fees?
a) 30 days a) 30 days
b) 15 days b) 45 days
c) 14 days c) 60 days
d) 45 days d) 90 days
e) 60 days e) 120 days
4. Within what time creation or modification of 10. Satisfaction of charge is allowed by Registrar
charge is allowed by the Registrar on payment of within ……. Days on payment of additional fees
normal fees? apart from normal fees?
a) 30 days a) 120 days
b) 45 days b) 180 days
c) 60 days c) 270 days
d) 90 days d) 300 days
e) 120 days e) 360 days
5. Within what time creation or modification of 11. In case of satisfaction of charge, condonation of
charge is allowed by the Registrar on payment of delay has to be filed with Central Government
additional fees apart from normal fees? beyond …………. Days?
a) 30 days a) 120 days
b) 45 days b) 180 days
c) 60 days c) 270 days
d) 90 days d) 300 days
e) 120 days e) 360 days
6. Within what time creation or modification of 12. What is the minimum penalty for non-
charge is allowed by the Registrar on payment of registration & delay in registration of charges?
Ad valorem fees apart from additional fees & a) Rs 1 lac
normal fees? b) Rs 2 lac
a) 30 days c) Rs 3 lac
b) 45 days d) Rs 4 lac

59
e) Rs 5 lac 19. What is the minimum educational qualification of
13. What is the maximum penalty for non- Business Correspondent?
registration & delay in registration of charges? a) 10th standard
a) Rs 1 lac b) 12th Standard
b) Rs 2 lac c) 8th Standard
c) Rs 3 lac d) Graduation
d) Rs 5 lac e) No minimum qualification
e) Rs 10 lac 20. For engaging an individual as BC, he/she has to
14. In case of satisfaction of charge, condonation of pass an examination undertaken by which
delay has to be filed with Central Government in institute?
which form? a) IBA
a) CHG 2 b) NIBM
b) CHG 8 c) IIBF
c) CHG 4 d) Central Govt.
d) CHG 1 e) Bank's Internal process
e) CHG 9 21. What is the commission paid to BC for
15. Under satisfaction of charge, what is the time undertaking AEPS transaction OFF US per
period given to the charge holder by the transaction?
Registrar, to show cause as to why satisfaction of a) Rs 4.00
charge should not be recorded? b) Rs 3.00
a) 30 days c) Rs 2.00
b) 15 days d) Rs 5.00
c) 14 days e) Rs 1.00
d) 45 days 22. What is the commission paid to BC for APY
e) 60 days enrolment, per APY?
16. What is the maximum TOD that can be allowed a) Rs 25
to SB BSBDA accounts? b) Rs 15
a) Rs 15000 c) Rs 30
b) RS 20000 d) Rs 50.00
c) Rs 14000 e) Rs 20.00
d) Rs 5000 23. What is the minimum transaction amount which
e) Rs 10000 the BC can undertake?
17. What is the maximum time period within which a) Rs 50
TOD in SB BSBDA account has to be adjusted? b) Rs 100
a) 30 days c) Rs 150
b) 45 days d) Rs 25
c) 60 days e) Rs 200
d) 90 days 24. NSFDC provides loans to which section of the
e) 120 days population?
18. What is the maximum limit that can be given to a) SC
the Business Correspondents'[s CC Smart b) ST
Account? c) minority
a) Rs 2 lac d) OBC
b) Rs 50000 e) EWS
c) Rs 75000 25. What is the income criteria for Urban Areas,
d) Rs 1 lac under which annual family income of an eligible
e) RS 25000 candidate should be?
a) Rs 60000

60
b) Rs 120000 c) 25.00%
c) Rs 50000 d) 30.00%
d) Rs 98000 e) 100.00%
e) Rs 110000 32. Letters of Guarantee with less than 100% margin
26. What is true in case of take over advances by way of deposits or cash and /or any other
a) Repayment of loan may be extended intake of immovable properties can be issued by Branch
advances Manager for a maximum period of
b) no need to take Confidential information report a) 5 years
in retail loan b) 3 years
c) after three-month enhancement can be done c) 10 years
d) after six-month enhancement can be done d) Cannot issue
e) none of the above e) Any period
27. Deferred Payment Guarantee is 33. As per our revised valuation policy, realisable
a) Performance Guarantee value of the immovable property will be how
b) Financial Guarantee much percentage of Fair Market Value (FMV)
c) Stand by LC a) 10%
d) None b) 100%
e) All of the above c) 85.00%
28. Letter of Guarantee with 100 % Cash Margin, d) 95.00%
then a Branch Manager can issue LG for a Period e) NONE OF THESE
of ___ including Claim Period 34. Two independent valuations are to be obtained
a) 5 Years from the panel valuers in cases Where the value
b) 3 Years of any particular property (ies) is
c) 1 Year a) Rs.1.00 Crore and above
d) 10 Years b) Rs.2.00 Crore and above
e) No LG cannot be issued by Branch Manager c) Rs.5.00 Crore and above
29. Letter of Guarantee with less than 100 % Cash d) Rs.10.00 Crore and above
Margin, then a Branch Manager can issue LG for e) NONE OF THESE
a Period of ___ including Claim Period 35. Properties mortgaged / Fixed Assets
a) 5 Years hypothecated are to be got revalued at least
b) 3 Years a) once in every year
c) 1 Year b) 02 years
d) 10 Years c) 03 years
e) No LG can’t be issued by Branch Manager d) 05 years
30. LG is classified as ___ in the Bank Books e) NONE OF THESE
a) Net Worth 36. Bank can consider Valuers having the
b) Current Liability …………………….. degree in Valuation for real estate
c) Long Term Liability valuer empanelment
d) Contingent Liability a) Graduation
e) None b) Post Graduate
31. Minimum Cash Margin for financial guarantee c) PhD
a) 10.00% d) 10 years of experience alone
b) 20.00% e) A&D

61
Answer Keys:

Q. No Ans Q. No Ans Q. No Ans Q. No Ans

1 D 11 D 21 A 31 C
2 B 12 A 22 D 32 B
3 C 13 E 23 A 33 C
4 A 14 B 24 A 34 C
5 C 15 C 25 B 35 C
6 E 16 E 26 D 36 B
7 E 17 C 27 B
8 A 18 D 28 A
9 A 19 A 29 B
10 D 20 C 30 D

62
 Module D – Credit Monitoring
Credit Monitoring & Inspection

1. What is coverage amount for CCA in 5. Which out of the following are exempted
Domestic branches? from review under CCA?
a) All standard borrowal accounts with exposure 1) Loan granted to Staffs under retail schemes
of Rs.100 lakhs & above. are eligible for audit
b) All standard borrowal accounts with exposure 2) Staff loans sanctioned under Staff scheme,
of Rs.50 lakhs & above Loan against deposit/Government
c) All standard & sub- standard borrowal Securities/liquid securities such as JL/AJL ETC.
accounts with exposure of Rs.50 lakhs & above 3) All NPA accounts.
d) All standard borrowal accounts with exposure 4) All accounts where ASM appointed and works
of Rs.75 lakhs & above has been initiated by the auditor.
e) None of the above a) Only 1
2. What is coverage amount for CCA in b) Only 1& 2
Overseas Branches under CCA? c) Only 2& 3
a) Accounts having an exposure of Rs.0.10 core d) Only 2,3 &4.
and above. e) None of the above.
b) Accounts having an exposure of Rs.2.00 core 6. As per New CCA policies which of the
and above. following has been discontinued?
c) Accounts having an exposure of Rs.10.00 core a) Detecting early warning signal and suggest
and above. remedial measures thereof.
d) Accounts having an exposure of Rs.100.00 b) Conduct of credit risk assessment.
core and above. c) Examine adequacy of documentation.
e) Accounts having an exposure of Rs.1.00 core d) Physical verification of the unit.
and above. e) Examine the conduct of accounts and follow
3. What is periodicity of Credit Compliance up by the branch.
Audit in case of retail loans? 7. What is the threshold limit for red flagging of
a) Audit shall be conducted only once within 2 accounts bases on early warning signal as per
months from the first disbursement. the latest RBI guidelines?
b) Audit shall be conducted only once within 3 a) 2 Crore & above
months from the first disbursement. b) 3 Crore & above
c) Audit shall be conducted only once within 30 c) 5 Crore & above
days from the first disbursement. d) 10 Crore & above
d) Audit shall be conducted only once within 6 e) None of the above.
months from the first disbursement. 8. Which of the following comes under zero
e) No time limit. tolerance level deficiencies are true?
4. How many formats for Credit Compliance 1. KYC compliance & documentation
Audit as per new CCA policy? 2. Post sanction inspection/asset creation.
a) 1 3. Variation of rate of interest from sanction.
b) 2 4. Exceeding discretionary power.
c) 3 5. Time barred documents.
d) 4 a) Only 1, 4 & 5.
e) None of the above. b) Only 3, 4, & 5
c) Only 4 & 5
d) All of the above
e) None of the above

63
9. Which of the following are true about CSS e) None of the above
statements? 14. Which of the following/s is/are renamed as
a). CSS is to be collected every month from Credit Compliance Audit (CCA)?
Branches in respect of Borrowal accounts with a) Credit Audit
fund based working capital limits of Rs.10 crores b) Stock Audit
and above. c) Loan Review Mechanism
b) CSS is to be collected every month from d) both 1 & 3
Branches in respect of Borrowal accounts with e) both 2 & 3
fund based working capital limits of Rs.1 crore 15. Which accounts are eligible for stock Audit?
and above. a) Borrower accounts having fund and non-
c) All debit transactions of above Rs. 5 lakhs are fund based working capital limit of Rs. 5
being confirmed about business related crores and above as on 31st October of
transaction. every year
d) Only A & C b) Borrower accounts having fund and non-
e) Only B & C. fund based working capital limit of Rs. 5
10. Time limit for submission of ROC (Relieving crores and above as on 31st March of every
Officer’s Certificate) is: year
a) 15 days c) Borrower accounts having non fund based
b) 25 days working capital limit of Rs. 5 crores and
c) 30 days above as on 31st October of every year
d) 45 days d) Borrower accounts having non fund based
e) 180 days working capital limit of Rs. 5 crores and
11. Review/Renewal of borrowal accounts above as on 31st March of every year
sanctioned will be ensured within ____ e) None of the above
months from due date? 16. In which of the following accounts, stock
b) 3 months audit is applicable?
c) 6 months a) CC- Staff
d) 1 months b) CC- ETF
e) within 1 year c) MCC
f) None of the above d) both 2 & 3
12. Which of the following loans are exempted e) None of the above
from annual review/renew? 17. Stock Audit report has to be submitted
a) Loan against property within ___ from the date of assignment.
b) Staff loans a) 1 month
c) Retail term loans up to 25 lakhs b) 2 months
d) both 1 & 2 c) 3 months
e) both 2 & 3 d) 15 days
13. Continuous Surveillance Statement (CSS) is e) 10 days
to be submitted in respect of borrowal 18. All borrowers with credit limit of ____ from
accounts where ____. the banking system should get themselves
a) borrowers enjoy fund based limit of 1 crore audited compulsorily by Chartered
& above Accountants.
b) borrowers enjoy non-fund based limit of 1 a) Rs. 10 lakhs and above
crore & above b) Rs. 25 lakhs and above
c) borrowers enjoy fund based limit of 550 c) Above Rs. 10 lakhs
lakhs & above d) Above Rs. 25 lakhs
d) borrowers enjoy fund based limit of above 1 e) None of the above
crore

64
19. Submission of financial statements by c) TEV study is applicable for restructuring of
individual agricultural borrower for availing advances of Rs. 5 crores and above
agricultural advances is mandatory for d) All of the above
advances ____. e) None of the above
a) Less than 50 lakhs 25. As per the recent government guidelines, all
b) More than 50 lakhs the public sector companies to compulsorily
c) 50 lakhs and above procure 25% from MSME units. Out of 25%,
d) Above 25 lakhs ___ should be reserved for women
e) None of the above entrepreneurs.
20. As per our bank's policy, for non- fund based a) 5%
working capital limits, Unit visit is to be b) 1%
conducted _____. c) 2%
a) Not required for non-fund based limits d) 3%
b) Half Yearly e) 4%
c) Before Renewal 26. Currently CRILC main report has to be
d) Monthly submitted ___ which was earlier quarterly.
e) Quarterly a) Monthly
21. CMA data along with Audited balance sheet b) Fortnightly
is to be called for working capital limits ___. c) Weekly
a) Above 2 crore d) Bi-monthly
b) Above 1 crore e) None of the above
c) 1crore and above 27. All SMA 2 accounts of the borrowers having
d) 2 crores and above credit exposure of 5 crores and above has to
e) None of the above be updated to CRILC ____.
22. What is R stands for in CRILC? a) Every Friday
a) Report b) Every 15th of the month
b) Reforms c) Last working day of the month
c) Running d) Every quarter end
d) Rehabilitation e) None of the above
e) None of the above 28. If an account is overdue for 60 days, on 60th
23. As priority sector guideline, which of the day the account will be classified under ___.
following/s is/are not true? a) SMA 0
a) 20 per cent year-on-year growth in credit to b) SMA 1
micro enterprises c) SMA 2
b) 10 per cent annual growth in the number of d) Substandard
micro and small enterprise accounts e) Doubtful
c) 60 per cent of total lending to MSE sector as 29. What is the threshold for classifying an
on 31st March of previous year to Micro account as Red Flagged Account?
enterprises a) Fund based Credit Exposure of 50 crore or
d) 7.5% of ANBC or CEOBE whichever is lower more
should go to Micro unit b) Fund based & non-fund-based Credit
e) All of the above Exposure of 50 crore or more
24. Which of the following is incorrect related to c) Fund based & non-fund-based Credit
TEV study? Exposure of 100 crore or more
a) TEV study is applicable for green field d) Fund based Credit Exposure of 100 crore or
advances above 25 crore more
b) TEV study is applicable for consortium e) None of the above
advances above 50 crore

65
30. Which of the following is not Siphoning of a) Business risk
Funds? b) Automated control risk
a) Utilization of short-term funds for long term c) Control Risk
purposes d) Reputational Risk
b) shortfall in deployment of funds vis-à-vis the e) Systemic Risk
amount disbursed and the difference is not 34. -------------- is extended arm of RBIA (Risk
accounted for Based Internal audit) which will not help
c) Transferring borrowed funds to subsidiary as branches in real time compliances of the
loan deviations but will also help in reducing the
d) Deploying borrowed funds as investment in audit man days in future.
stock market a) OCAS
e) None of the above b) OMU-PROBE
31. What does ‘P ‘stands in PROBE? c) Short inspection
a) Perfect d) PVRO
b) Permanent e) CCA
c) Perpetual 35. Automated Control risk (ACR) is sourced and
d) Profitable supplied by CO departments on ----------------
e) Performance ------ basis
32. What does ‘B” stands in RBIA? a) Monthly
a) Basis b) Half yearly
b) Between c) Quarterly
c) Business d) Yearly
d) Based e) Bi-monthly
e) Balance
33. As per RBIA, OMU/OCAS comes under which
type of Risk?

Answer Keys:
Q. No Ans Q. No Ans Q. No Ans Q. No Ans
1 B 11 A 21 D 31 C
2 E 12 E 22 E 32 D
3 A 13 A 23 E 33 B
4 B 14 D 24 D 34 B
5 D 15 B 25 D 35 C
6 D 16 E 26 A
7 B 17 B 27 A
8 D 18 D 28 B
9 E 19 C 29 E
10 A 20 D 30 E

66
 Module E – NPA & Recovery
Recovery Policy

1. What is the validity of present Recovery Policy?

a) 1years e) Not required
b) 2 years 7. Release of securities where ots/ocs already
c) 3 years sanctioned can be considered
d) 5 years a) On payment of OTS/OCS amount as per agreed
e) None of these terms.
2. Objectives of Recovery Policy are: b) On sanction date
a) To ensure arresting slippages c) On proposal acceptance date
b) To ensure Considerable reduction in Non- d) Never, till full dues are paid
Performing Assets e) None of the above
c) To ensure that the recoveries in Written off 8. Staff loans under Recovery policy/ OTS can be
accounts settled by:
d) All of the above a) Regional manager
e) None of these b) Regional level credit committee
3. What are the methods of Recovery in Recovery c) Central office
Policy? d) It will be very rare and should be judiciously
a) Adjusting the permitted Credits decided.
b) Recovering overdue amount to upgrade e) Can’t be settled.
c) Debt Recovery Agents and Detective 9. Can one of the account in group accounts be
/Investigating Agency settled leaving other standard and NPA accounts
d) All of the above of the group?
e) None of these a) Can be considered on merits
4. Which of these are not eligible accounts for OTS b) All accounts must be settled at a time
a) All NPA accounts- both Suit filed and Non-Suit c) Can’t be done
filed. d) Only can be considered at central office with
b) Written-Off Accounts. Management committee of the board approval
c) Accounts under restructuring process. e) None of the above
d) Only A and B 10. Can we settle Suit filled NPA accounts freely
e) All of the above under:
5. Which Accounts can be settled under out of a) One time settlement/ compromise
court settlements? b) Recovery policy
a) All NPA accounts- both Suit filed and Non-Suit c) SARFAESI
filed. d) Restructuring
b) Written-Off Accounts. e) None of the above
c) Accounts under restructuring process. 11. Recovery policy is applicable for:
d) Only A and B a) MSME
e) All of the above b) Retail
6. In the case of partial release of security not c) Agri
under OTS/OCS, the valuation report should not d) All of the above
be more than e) None of the above
a) 1 year old
b) 3 months old
c) 6 months old
d) Not older from sanction date

67
12. All accounts considered for OTS or settlement e) 25%
under recovery policy should comply with: 14. 25% of the OTS/OCS sanctioned amount is to be
a) Only NPA accounts paid within ________ of conveying the sanction
b) Where staff accountability had been completed/ a) 1 Year
conducted b) 6 months
c) Both A & B c) Immediately
d) Only A d) 3 months
e) Any account can be considered e) Any agreed time
13. What is the percentage of amount of claim/ 15. The Overall payment period including delayed
outstanding to be taken/ deposited by the payment period under recovery policy shall not
account holder before considering settlement exceed:
under recovery policy? a) 3 months
a) 5% b) 6 months
b) 10% c) 1 year
c) 15% d) Any time agreed.
d) 20% e) None of the above

Answer:

Q A Q A Q A
1 C 6 C 11 D
2 D 7 A 12 C
3 D 8 D 13 B
4 E 9 A 14 D
5 E 10 B 15 C

68
 Prudential Accounting Norms- Advances

1. Loans and advances are classified into how 7. What is the asset classification for an advance
many categories as per Income recognition remaining overdue for more than 90 days and
norms: backed by State Government guarantee?
a) 1 a) Government guarantee backed advances need
b) 2 not be classified as NPA
c) 3 b) Will be classified as NPA
d) 4 c) Refer to CO for instructions
e) 5 d) Will be classified as NPA with reduced provision
2. When will an account be classified as NPA e) None of the above
a) When EMI is not paid 8. What is a substandard asset?
b) When the excess in the account is not adjusted a) Asset which has remained NPA for 12 months
c) When the account ceases to generate income b) Asset which has remained NPA for more than 12
d) One year after first disbursement months
e) Remains un-renewed for 1 month c) Asset which has remained NPA for period not
3. When is an account treated as out of order? exceeding 12 months
a) Outstanding continuously above limit / DP d) Asset which has remained NPA for 24 months
b) Limit not renewed for 180 days from the due e) Asset which has remained overdue for 90 days
date 9. What is the specified period in case of a
c) Stock statement not submitted for 3 months restructured account?
d) All the above a) Period given to regularize the account
e) None of the above b) Period for which the account is allowed to
4. Short term crop loan will be treated as NPA if remain overdue
a) remains overdue for 91 days c) Extended repayment period under restructuring
b) remains overdue for 2 crop loans package
c) not paid even after 90 days of due date d) Additional moratorium period granted
d) Crop loan cannot be classified as NPA e) 1 year from the commencement of first
e) Not repaid on the due date payment of interest or principal for the loan
5. Cash Credit granted to Food Corporation of India with maximum moratorium
is guaranteed by Ministry of Agriculture. When 10. An existing substandard account is restructured.
it will be classified as NPA What will be asset classification after
a) When CC limit becomes due for renewal restructuring
b) Stock statement not received from Food a) Will continue to be sub-standard and will slip to
Corporation of India next category with passage of time
c) Interest not serviced for 90 days b) Will be upgraded
d) Limits to Food Corporation is exempted c) Will remain substandard for another 12 months
e) When GOI (Ministry of Agriculture) repudiates d) Will become doubtful asset
its guarantee e) None of the above
6. A loan has been granted against NSC. When it 11. What is satisfactory performance of a
will be treated as NPA restructured non-agricultural CC account
a) 3 months after disbursement a) All dues paid
b) If not paid on maturity b) Interest is promptly serviced
c) If payment is refused by post office c) Account not out of order during specified period
d) Will not be classified as NPA till if sufficient d) No overdue at the end of specified period
margin is available e) Both C & D
e) None of the above 12. What is meant by satisfactory performance in

69
 the case of an agricultural loan which has been 18. When NPA account is termed as chronic NPA
restructured a) When provision is 100% on unsecured portion
a) Account has been closed b) When provision is 100% on secured portion
b) Interest subvention has been received c) 100% provision
c) No over-dues at the end of specified period d) After 2 years
d) Existing limit has been renewed e) None of the Above
e) None of the above 19. How much provisioning to be done for Doubtful
13. What is the classification of an asset 4 months 3 category
old NPA where security value has diminished by a) 100% of NPA amount
60%? b) 100% for unsecured & 40% for secured portion
a) Sub-standard c) 100% for unsecured & 25% for secured portion
b) Doubtful d) 100% for unsecured & NIL for secured portion
c) Loss asset e) No provision required
d) None of the above 20. Income considered for standard accounts
e) Restructured account a) On recovery
14. Asset is classified as standard on restructuring. b) Physical recovery
The limit was subsequently renewed with c) Accrual basis
another restructuring. What is the asset d) Next day after recovery
classification on renewal? e) None of the above
a) Standard 21. How much provisioning required for standard
b) Substandard MSME Account?
c) Doubtful a) 1%
d) Loss b) 0.50%
e) Restructured c) 0.25%
15. Outstanding in a D1 classified account is Rs. 2 d) 0.40%
lacs and security available is Rs. 120000. What is e) 0.75%
the provision to be made? 22. Additional provisioning required for restructured
a) Rs. 200000 accounts
b) Rs. 120000 a) 10%
c) Rs. 80000 b) 1%
d) Rs. 110000 c) 5%
e) Rs. 50000 d) 25%
16. Doubtful account with outstanding Rs.4 lacs. e) NIL
75% coverage under CGTMSE. First installment 23. When the credit card account will be declared
of claim received. What is the provision to be NPA, if due amount not received/paid?
made? a) On due date
a) Rs. 300000 b) Next day of due date
b) Rs. 400000 c) 90 days of due date
c) Rs. 100000 d) 90 days from statement date
d) Rs. 75000 e) Will never be declared NPA
e) None of the above 24. If security diminution is more than 90% than
17. For how much time NPA account will remain in standard account will be directly classified to
Doubtful 2 category which category:
a) 1 year a) Sub standard
b) 2 year b) Doubtful 1
c) 4 years c) Doubtful 2
d) 6 months d) Sub Standard
e) No such category e) Loss

70
25. How much time account will remain in sub- a) Standard
standard category? b) Sub Standard
a) 1year c) Doubtful
b) 2 year d) Loss
c) 3 year e) No change in classification
d) 4 year 29. If there is no credit in cash credit account for 90
e) Indefinitely days, it will have classified as:
26. Fraud accounts will be classified to which a) Remain standard if outstanding is less than limit
category? b) Remain standard if outstanding is less than
a) Remain standard Drawing Power
b) Sub standard c) Declared NPA on 90th day
c) Doubtful d) Declared NPA on 180th day
d) Loss e) No operation account
e) Doubtful 3 30. Usance Bill will be classified NPA after 90 days
27. How much provision is required for fraud from
accounts? a) The date of discount
a) 5% b) From date of purchase
b) 25% c) From due date
c) 100% d) 90 days after due date
d) NIL e) Will not be classified NPA once accepted by
e) 40% Buyer
28. If Adhoc not regularized within 180 days,
Account will be classified as

Answers:

Q A Q A Q A Q A Q A
1 B 7 B 13 B 19 A 25 A
2 C 8 C 14 B 20 C 26 D
3 D 9 E 15 D 21 C 27 C
4 B 10 A 16 C 22 C 28 B
5 E 11 E 17 B 23 C 29 C
6 D 12 C 18 C 24 E 30 C

71
 Restructuring of Advances

1) MSMEs accounts have aggregate exposure of an 8) For MSMEs with aggregate exposure up to 25
amount not exceeding RS _______ are eligible lakhs moratorium can be considered for up to
for restructuring a) 3 Months
a) 10 Crores b) 12 Months
b) 15 crores c) 6 Months
c) 25 crores d) 9 Months
d) 30 crores 9) For MSMEs with aggregate exposure above 25
2) MSMEs with aggregate exposure Rs 25 crores as lakhs moratorium can be considered for up to
on ______ are eligible for restructuring a) 3 Months
a) March 1, 2020 b) 6 Months
b) Aril 1, 2020 c) 9 Months
c) January 1, 2020 d) 12 Months
d) Feb 1, 2020 10) For Micro Enterprises repayment should not
3) For MSME unit to be restructured under viability exceed ______ Years from date of restructuring
assessment Debt equity ratio should be a) 10 years
a) 2:1 b) 6 years
b) 4:1 c) 7 years
c) 3:1 d) 5 years
d) 1:1 11) For Small Enterprises repayment should not
4) For MSME unit to be restructured under viability exceed ______ Years from date of restructuring
assessment Average DSCR should be a) 10 years
a) 2 b) 6 years
b) 1 c) 7 years
c) 1.25 d) 5 years
d) 1.15 12) For Medium Enterprises repayment should not
5) For MSME unit to be restructured under viability exceed ______ Years from date of restructuring
assessment Current ratio should be a) 10 years
a) >1 b) 6 years
b) <1 c) 7 years
c) >2 d) 5 years
d) <2 13) In case the unit wants additional finance, Banks
6) Techno Economic Viability study to be can finance additional limits under restructuring
conducted if credit exposure is more than package to a maximum extent of ________% of
a) 5 crores existing restructured facilities
b) 10 crores a) 10%
c) 15 crores b) 20%
d) 25 crores c) 30%
7) Promoter’s sacrifice and additional funds bought d) 50%
by them should be minimum ____% of Banks’ 14) Restructuring to be implemented on or before
sacrifice or ______% of the restructured debt, a) March 31, 2020
whichever is higher b) February 28, 2020
a) 10%, 5% c) March 31, 2021
b) 20%, 2% d) February 28, 2021
c) 2%, 20%
d) 5%, 10%

72
15) For MSME unit to be restructured under viability a) 33300
assessment Minimum DSCR for each year should b) Same as Original Loan Code
be c) 33390
a) More than 2 d) 33360
b) Less than 1 22) For account to be eligible for Restructuring All
c) 1.25 MSMEs having aggregate exposure, including
d) More than 1 non-fund based facilities, not exceeding
16) Asset classification of borrowers classified as Rs.25.00 crores as on March 1, 2020 and the
standard may be retained as _____ after Account is in default but ______________ as on
restructuring March 1, 2020
a) Sub Standard a) Substandard
b) Standard b) Loss
c) Doubtful c) Standard
d) Loss Asset d) Doubtful
17) Accounts which may have slipped into NPA 23) If the Account is restructured earlier can it be
between ________ and date of implementation restructured now in the current restructuring
of the scheme may be upgraded as Standard scheme
Asset as on date of implementation of the a) Yes
restructuring plan b) With permission of Central Office can be done
a) March 01, 2020 c) With permission of Regional Office can be done
b) March 01, 2021 d) NO
c) March 02, 2020 24) For Branches Headed from scale I to Scale IV
d) March 02, 2021 under their power can do
18) Accounts which may have slipped into NPA a) Restructuring only
between March 02,2020 and date of b) Restructuring and sanctioning of additional
implementation of the scheme may be Finance
upgraded as _____Asset as on date of c) Addition Financing only
implementation of the restructuring plan d) None of the above
a) Standard Asset 25) For Branches Headed from scale I to Scale IV
b) Sub Standard Asset additional financing for loans restructured can
c) Doubtful Asset be done by
d) Loss Asset a) Branch Manger
19) Post restructuring accounts shall be governed by b) RLCC
the extant _______norms c) Other branches headed by scale V
a) RBI Norms d) None of the above
b) Bank Norms 26) For Branches Headed from Scale V and above
c) NPA Norms and under their power can do
d) ICRA Norms a) Restructuring only
20) The accounts restructured under the scheme b) Addition Financing only
shall attract additional provision of c) Restructuring and sanctioning of additional
__________% over and above the provision Finance up to their limits
already held d) None of the above
a) 10% 27) For Regional offices under their power can do
b) 5% a) Restructuring and sanctioning of additional
c) 15% Finance up to their limits
d) 25% b) Restructuring only
21) All Restructured accounts should be transferred c) Addition Financing only
to GL Code______ d) None of the above

73
28) Restructuring resolution is deemed to be 29) For MSME account to be eligible for
completed if restructuring the borrower entity should be
(i) All the related documentation including ______ registered entity until unless exempted
execution of necessary agreements between a) PAN registered
bank and borrower/ creation of security b) AADHAR registered
charge/ perfection of securities are c) GST Registered
completed d) None of the above
(ii) The new capital structure and /or changes in 30) MSME account to be eligible for restructuring
terms and conditions of the existing loans should be registered with GST (until unless
get duly effected in the books of banks and exempted)
the borrower a) Either before or after Implementation of
a) If any one of (i) &(ii) above are fulfilled Restructuring
b) If both (i) &(ii) above are fulfilled b) GST is not Mandatory
c) If both (i) &(ii) above are not fulfilled c) After Implementation of Restructuring
d) If any one of (i) &(ii) above are not fulfilled d) Before Implementation of Restructuring

Answers:

Q A Q A Q A Q A Q A
1 C 7 B 13 B 19 D 25 B
2 A 8 C 14 C 20 B 26 C
3 B 9 D 15 D 21 A 27 A
4 D 10 D 16 B 22 C 28 B
5 A 11 C 17 C 23 D 29 C
6 A 12 A 18 A 24 A 30 D

74
 Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises
(MSMEs)

1. Which of the following loans is eligible for a) 5 Lakhs

Framework for Revival and Rehabilitation of b) 10 Lakhs
MSMEs? c) 15 Lakhs
a) Housing Loan d) 25 Lakhs
b) Vehicle loan 8. Which of the following accounts should
c) Staff Loan compulsorily forwarded to Committee for a
d) None of the above suitable corrective action plan under the
2. The provisions made in the framework for Framework for Revival and Rehabilitation of
Revival and Rehabilitation shall be applicable to MSMEs
MSMEs having loan limits up to a) SMA-0 Accounts
a) 25 Crores b) SMA-1 Accounts
b) 50 Crores c) SMA -2 Accounts
c) 15 Crores d) NPA Accounts
d) 10 Crores 9. Accounts with aggregate loan limits of above Rs
3. Under which of the following cases loan can be 10 Lakhs should be dealt with by the
put up under for Framework for Revival and ___________ for a suitable corrective action
Rehabilitation of MSMEs plan under the Framework for Revival and
a) SMA-0, SMA-1 & SMA-2 Accounts Rehabilitation of MSMEs
b) MSME borrower by himself voluntarily a) Branches
c) In both (a) and (b) cases above b) Branches head by Chief Manager and above
d) NPA Accounts c) Committee at Branches
4. Principal or interest payment not overdue for d) Committee at regional offices
more than 30 days is Classified as 10. For MSME borrowers having credit facilities
a) SMA 0 under a consortium of banks or multiple banking
b) SMA 1 arrangement (MBA) who of the following will
c) SMA 2 form the committee
d) NPA a) Any Banks regional office
5. Principal or interest payment overdue between b) Consortium leader or Bank having the largest
31-60 days is Classified as exposure
a) SMA 0 c) Consortium leader or Bank having the least
b) SMA 1 exposure
c) SMA 2 d) None of the above
d) NPA 11. If any cases referred to the committee by the
6. Principal or interest payment overdue between branches or the borrower approaches directly,
61-90 days is Classified as the Committee should convey its meeting at the
a) SMA 0 earliest but not later than_________ working
b) SMA 1 days from the receipt of the application, to
c) SMA 2 examine the account for a suitable Corrective
d) NPA Action Plan
7. Accounts with aggregate loan limit up to Rs a) 1 Day
_______ may be dealt with by the branch b) 3 Days
manager for a suitable corrective action plan c) 5 Days
under the Framework for Revival and d) 10 Days
Rehabilitation of MSMEs

75
12. Whom among the following will be the a) 10 Days
Chairperson of the Committee under the b) 15 Days
Framework for Revival and Rehabilitation of c) 20 Days
MSMEs d) 30 Days
a) Regional Head 18. If the corrective action plan is restructuring plan
b) Officer in charge of MSME department to be implemented with in
c) Any officer of Regional office a) 90 Days
d) Any officer of central office b) 100 Days
13. The Committee may send notice to such c) 200 Days
statutory creditors informing them about the d) 300 Days
application under the Framework and permit 19. If the corrective action plan is Recovery plan to
them to make a representation regarding their be implemented with in
claims before the Committee within _______ a) 90 Days
working days of receipt of such notice b) 100 Days
a) 5 Days c) At the earliest
b) 15 Days d) 300 Days
c) 20 Days 20. Viability bench mark for Average DSCR under
d) 30 Days Framework for Revival and Rehabilitation of
14. Within ______days of convening its first MSMEs is
meeting for a specific enterprise, the Committee a) Equal to 1
shall take a decision on the option to be b) 1.15
adopted under the corrective action plan c) Less than 1
a) 10 Days d) 1.25
b) 15 Days 21. Viability bench mark for Interest Coverage Ratio
c) 30 Days under Framework for Revival and Rehabilitation
d) 45 Days of MSMEs is
15. If the corrective action plan decided by the a) Between 1 and 1.20
Committee envisages restructuring of the debt b) 1.15
of the enterprise, finalise the terms of c) Less than 1
restructuring within ________ Working Days for d) 1.25
accounts having aggregate exposure up to Rs.10 22. Viability bench mark for Debt Equity Ratio under
crore Framework for Revival and Rehabilitation of
a) 10 Days MSMEs is
b) 15 Days a) 1:1
c) 30 Days b) 2:1
d) 20 Days c) 3:1
16. If the corrective action plan decided by the d) 4:1
Committee envisages restructuring of the debt 23. Viability bench mark for Current ratio under
of the enterprise, finalise the terms of Framework for Revival and Rehabilitation of
restructuring within ________ Working Days for MSMEs is
accounts having aggregate exposure above a) >1
Rs.10 crores up to 25 crores b) 1.15
a) 10 Days c) <1
b) 15 Days d) 1.25
c) 30 Days 24. Restructuring cases shall be taken up by the
d) 20 Days Committee only in respect of assets reported as
17. If the corrective action plan is rectification plan ___________ by one or more lenders of the
to be implemented with in Committee.

76
a) Standard c) MSME
b) SMA d) Recovery
c) Substandard 28. For restructuring & rehabilitation under the
d) All the above frame work up to Rs 10 lakhs if corrective action
25. Which of the following decisions can be taken plan involves Additional Finance Branch can
under Corrective action plan under Framework sanction up to____
for Revival and Rehabilitation of MSMEs? a) cannot sanction
a) Rectification b) Up to their per borrower limit
b) Restructuring c) Refer to regional office
c) Recovery d) Rs 10 lakhs
d) All the above 29. For restructuring & rehabilitation under the
26. Based on RBI guides our bank has framed a frame work up to Rs 10 lakhs if corrective action
policy for “Framework for Revival and plan involves Recovery then Branch ________
Rehabilitation of Micro, Small and Medium a) Should Initiate recovery
Enterprises (MSMEs)” W.e.f. b) Should not do any thing
a) 01-07-2016 c) Should recover up to Rs 10 lakhs
b) 01-09-2016 d) Should refer to RO for Approval
c) 01-07-2017 30. For restructuring & rehabilitation under the
d) 01-09-2017 frame work above Rs 10 lakhs if corrective
27. Officer-in-charge of the ____________ action plan involves Additional finance Regional
Department at the regional office shall be the can sanction up to____
member and convener of the Committee under a) cannot sanction
Framework for Revival and Rehabilitation of b) Up to their per borrower limit
MSMEs c) Refer to Central office
a) Retail d) Rs 10 lakhs
b) Planning
Answers:

Q A Q A Q A Q A Q A Q A
1 D 6 C 11 C 16 C 21 A 26 A
2 A 7 B 12 A 17 D 22 D 27 C
3 C 8 C 13 B 18 A 23 A 28 B
4 A 9 D 14 C 19 C 24 D 29 D
5 B 10 B 15 D 20 B 25 D 30 B

77
 Securitization And Reconstruction Of Financial Assets And Enforcement Of Security
Interest (SARFAESI) Act, 2002

1. What is the minimum amount of default to c) It should not be an interim reply

initiate SARFAESI action? d) Authorized officer should sign
a) Rs.10 lacs e) All the above
b) Rs.5 lacs 7. What is the maximum period from date of issue
c) Rs.1 lacs of demand notice under SARFAESI for
d) Rs.2 lacs regularizing the account?
e) No minimum Amount Criteria a) 30 days
2. When should demand notice under SARFAEIS to b) 60 days
be issue c) 90 days
a) Within 15 days’ account becoming NPA d) 120 days
b) Within 30 days of NPA e) 180 days
c) Within 3 months of NPA 8. For first auction under SARFAESI what should be
d) Within 6 months of NPA the reserve price
e) Immediately a) FMV
3. Demand notice under SARFAESI should contain b) FSV
……… c) 95% of FSV
a) Amount payable d) 95% of FMV
b) Details of secured assets e) Outstanding amount
c) Both A and B 9. How many days’ notice should be given for sale
d) A or B of property under SARFAESI?
e) None of the above a) 30 days for first auction and 15 days for
4. Demand notice under SARFAESI should be subsequent auction
issued to whom? b) 15 days for all auctions
a) Principal borrowers c) 30 days for all auction
b) Guarantors d) 60 days
c) Tenant occupying the property e) No specific requirement
d) Owner of the property 10. What are the main contents of SARFAESI sale
e) All of the above notice?
5. A demand notice under SARFAESI as sent to 3 a) Date and time of auction
partners and 2 guarantors. It could not be b) Reserve price
served on guarantor and was returned. What c) Statutory dues if any payable
follow up action should be taken? d) All the above
a) Paper publication should be made e) None of the above
b) Guarantor should be contacted over phone and 11. Possession notice under SARFAESI act should be
advised to collect it from branch published in newspaper within how many days?
c) Borrower should be instructed to serve it on the a) 3 days
guarantor b) 7 days
d) Further proceedings should be made against c) 10 days
other guarantor only d) 15 days
e) No action is needed e) 1 month
6. Objection received for SARFAESI demand notice. 12. How much amount should a successful bidder
What is to be done? under SARFAESI action should pay immediately?
a) Reply to be sent within 15 days a) 10% of the bid amount
b) Point war reply should be given b) 20% of the bid amount

78
c) 25% of the bid amount e) Only B
d) Entire BID Amount 19. Under SARFAESI, in the event the sale is
e) C less EMB amount already paid deferred then deferment need not be
13. Under SARFAEIS what is the maximum time contemplated for a period ___ days from the
given to successful bidder to pay the entire original date of proposed date.
amount a) 15 days
a) 10 days b) 30 days
b) 20 days c) 45 days
c) 30 days d) 60 days
d) 15 days e) 90 days
e) Any agreed time 20. Under SARFAESI, for conducting sale of movable
14. The authorized officer in SARFAESI Act has to be assets by private treaty for the assets value up
an officer equivalent to a ……. Of a PSB? to Rs.1.00 Crore conduct of how many minimum
a) Senior Manager public auction is required
b) Chief Manager a) 1
c) AGM b) 2
d) DGM c) 3
e) Any Officer d) Not required
15. Taking action simultaneously both under e) Private treaty can’t be done
SARFAESI as well as the DRT act is permissible. 21. Under SARFAESI, for conducting sale of movable
a) Correct assets by private treaty for the assets value
b) Not Correct more than Rs.1.00 Crore conduct of how many
c) Not mentioned under SARFAESI Act minimum public auction is required
d) As per the Court Decision a) 1
e) None of the Above b) 2
16. Under SARFAESI, Possessions of the secured c) 3
assets have to be taken after _____ days of the d) 4
acknowledgement of the Demand Notice. e) None of the above
a) 15 days 22. Under SARFAESI, the CMM/CJM/DM shall after
b) 30 days satisfying the contents of affidavit pass suitable
c) 45 days orders under sec-14 for the purpose of taking
d) 60 days possession of the secured assets within a period
e) 90 days of ____ days from the date of application.
17. Under SARFAESI, while fixing the reserve price a) 7 days
for the second or further auction, it should be b) 10 days
____% of the FSV? c) 15 days
a) 100% d) 30 days
b) 75% e) 60 days
c) 90% 23. Under SARFAESI, the CMM/CJM/DM passed no
d) 95% order under sec-14 for the purpose of taking
e) Equivalent of outstanding amount possession of the secured assets within a period
18. Under SARFAESI, the manual auction is of 30 days for the reasons beyond control, he
permitted where may, after recording reasons in writing, pass the
a) Book O/s at the time of auction is less than order within such further period not exceeding
Rs.5.00 lac in aggregate ----Days
b) FSV of the property is less than the Rs.5.00 lac a) 45 days
c) Both A and B b) 37 days
d) Only A c) 60 days

79
d) 90 days 27. SARFAESI Acts deals with
e) 120 days a) Securitization
24. Under SARFAESI ACT, the application filed by b) Asset Reconstruction
borrower/Guarantor filed before DRT, are c) Enforcement of Security Interest (without court
expected to dispose the borrower's application Intervention)
within __ days which can be extended up to 04 d) All of the Above
months. e) Only c
a) 30 days 28. Which is correct action flow for action under
b) 45 days SARAFESI for enforcing security Interest:
c) 60 days a) Demand Notice, Possession, Sale Notice, Auction
d) 90 days b) Demand Notice, Auction, Possession, Sale Notice
e) None of the above c) Demand Notice, Sale Notice, Auction, Possession
25. Under SARFAESI ACT, the right is vested in d) Sale Notice, Auction, Demand Notice,
Borrower/Guarantor to challenge against the Possession,
action taken by Bank under section-13(4) the e) Possession, Sale Notice, Demand Notice, Auction
application can be filed before DRT within 29. Possession of security under SARFAESI can be
____days challenging the measured taken by taken in presence of
Bank. a) Authorized Officer
a) 30 days b) Any Bank Officer
b) 45 days c) Any Bank Employee
c) 60 days d) In the presence of Local Administrative Officer
d) 90 days e) Presence not required
e) No time limit 30. In case of any sale / transfer of immovable
26. Possession notice under SARFAESI Act to be property of _____ Lakhs and above, the
published in 2 newspapers, having circulation in transferee has to pay an amount equal to
area, where _________ % of the consideration as Tax.
a) Borrower resides a) 50, 1
b) Owner of the property resides b) 25, 2.5
c) Property is situated c) 100, 1
d) Maximum buyers are available d) 50, 2.5
e) Any where e) 60, prevailing registration charge in the state

Answer:

Q A Q A Q A Q A Q A
1 C 7 B 13 D 19 A 25 B
2 A 8 D 14 B 20 A 26 C
3 C 9 A 15 A 21 B 27 D
4 E 10 D 16 D 22 D 28 A
5 A 11 B 17 A 23 C 29 A
6 E 12 E 18 C 24 C 30 A

80
 Central Registry of Securitization Asset Reconstruction And Security Interest Of India
(CERSAI)

1) CERSAI is established under 8) Non-registration of charge under CERSAI within

a) CERSAI Act the time stipulated will be treated as a default
b) SARFAESI Act and is punishable with fine up to
c) RBI Act a) No Fine after modifications in Section 23 and
d) Banking Regulation Act Chapter IV A of SARFAESI act
2) Sec 20 of the SARFAESI act provides for b) 1000 per day
establishment of Central Registry to register c) 5000 per day
transactions relating to d) 10000 per day
a) Securitization of Financial assets 9) What is the fee for modification of security
b) Reconstruction of Financial Assets interest of loan below Rs.5.00 Lakh?
c) Creation of Security Interest a) 500
d) All the above b) 5000
3) CERSAI is established under Chapter_______ of c) 100
SARFAESI Act d) 50
a) IV 10) What is the fee for Modification of security
b) V interest of loan above Rs.5.00 Lakh?
c) VI a) 500
d) VII b) 50
4) CERSAI is also entrusted upon the responsibility c) 100
of operating and maintaining a _______ Registry, d) 5000
governed under PML Rules 2005. 11) What is the fee for Satisfaction of security
a) KYC interest of loan Below Rs.5.00 Lakh?
b) AML a) Free
c) Suspicious b) 50
d) None of the above c) 100
5) All securities charged to Bank to be registered d) 500
with CERSAI except 12) What is the fee for Satisfaction of security
a) Vehicles interest of loan above Rs.5.00 Lakh?
b) Agriculture land a) Free
c) Stock b) 50
d) (a) & (b) both c) 100
6) Time limit for registration of charge under d) 500
CERSAI 13) Fees for Filling of Particulars of securitization or
a) 30 Days reconstruction of financial assets transaction
b) 60 Days a) 10
c) No time limit b) 50
d) 90 Days c) 500
7) Penalty for late registration of charge in CERSAI d) 5000
a) Rs.10 14) Fees for Particulars of satisfaction of
b) Rs.25 securitization or reconstruction transactions
c) Rs.50 a) 10
d) No Charge b) 500
c) 50
d) 5000

81
15) Fees for Any application for information 22) The Security Interest Registry is encompassing
recorded/maintained in the Register by any security interest of
person a) Movable Property
a) 50 b) Immovable Property
b) 500 c) Assignment of receivables
c) 5000 d) All the above
d) 10 23) Can any person search and inspect the records
16) Security interest Registration for vehicles is done maintained by the Central Registry?
with a) Yes
a) VAHAN b) No
b) CERSAI c) Yes, on paying prescribed fees
c) RBI d) Only Authorised people can search and inspect
d) CGTMSE 24) Which of the following are the key Goals and
17) Which action bank cannot take if charge is not Objectives of the Central Registry System?
registered with CERSAI? a) Create a public database of encumbrances
a) Demand Notice cannot be issued on the properties for securing loans and
b) Possession cannot be taken advances from Banks and Financial
c) Secured asset cannot be sold without institutions
intervention of the court b) To enable lenders and other stake holders to
d) None of the above action can be taken get real time current information regarding
18) Whether standing crops or livestock the encumbered properties
hypothecated are covered under SARFAESI act c) Provide potential buyers of assets with
subject to minimum of Rs.1.00 Lakh information about any encumbrances on the
a) Yes assets
b) No d) To collect and disseminate information
c) Yes, With prior permission from DRT regarding the priority and amount secured
d) Yes, With prior permission from RBI by the charge on securities.
19) What is the fee for Creation of security interest e) Maintaining history of charges created and
of loan below Rs.5.00 Lakh? satisfied on a particular asset
a) 500 a) (i), (ii), and (iii) only
b) 5000 b) (ii), (iii) and (iv) only
c) 100 c) (i), (iii) and (v) only
d) 50 d) All (i), (ii),(iii), (iv) and (v) above
20) What is the fee for Creation of security interest 25) Entity Registration can be done by Central
of loan above Rs.5.00 Lakh? Registry admin user through web portal
a) 500 a) www.iob.in
b) 50 b) www.cersai.org.in
c) 100 c) www.rbi.in
d) 5000 d) None of the above
21) Section _____ of the Securitization and 26) The creditor who will register the charge
Reconstruction of Financial Assets and _______ will have the priority over others
Enforcement of Security Interest Act, a) First
2002(SARFAESI) provides for establishment of b) Second
Central Registry c) Third
a) 20 d) Fourth
b) 30
c) 25
d) 30

82
27) Form I under CERSAI is used for 29) Form III under CERSAI is used for
a) Creation and Modification of charge a) Creation and Modification of charge
b) Satisfaction of Charge b) Satisfaction of Charge
c) Securitisation and reconstruction of Financial c) Securitisation and reconstruction of Financial
Assets Assets
d) Satisfaction of Securitisation and reconstruction d) Satisfaction of Securitisation and reconstruction
of Financial Assets of Financial Assets
28) Form II under CERSAI is used for 30) Form IV under CERSAI is used for
a) Creation and Modification of charge a) Creation and Modification of charge
b) Satisfaction of Charge b) Satisfaction of Charge
c) Securitisation and reconstruction of Financial c) Securitisation and reconstruction of Financial
Assets Assets
d) Satisfaction of Securitisation and reconstruction d) Satisfaction of Securitisation and reconstruction
of Financial Assets of Financial Assets

Answers:

Q A Q A Q A Q A Q A Q A

1 B 6 C 11 A 16 A 21 A 26 A

2 D 7 D 12 A 17 D 22 D 27 A

3 A 8 A 13 B 18 A 23 C 28 B

4 A 9 D 14 C 19 D 24 D 29 C

5 D 10 C 15 D 20 C 25 B 30 D

83
 Resolution Frame Work for Corporate and MSME Due to Covid-19 Related
Stress

1) Which of the following loan is not eligible for c) 120 Days

Resolution Frame work for COVID- 19 Related d) 365 Days
Stress? 7) Who has discretion for restructuring of Branch
a) Housing Loan sanctioned loans under Resolution Frame work
b) Education Loan for COVID- 19 Related Stress for personal loans
c) Credit Cards a) Branch
d) Staff Loans b) Branches headed by Scale V & above
2) Which of the Following Accounts Eligible for c) RLCC
Resolution Frame work for COVID- 19 Related d) HLCC (GM)
Stress? 8) Who has discretion for restructuring of RLCC
a) SMA 0 sanctioned loans under Resolution Frame work
b) SMA 1 for COVID- 19 Related Stress for personal loans
c) SMA 2 a) Branch
d) NPA b) Branches headed by Scale V & above
3) Only those accounts which are classified as c) HLCC (GM)
_______, but not in default for more than 30 d) RLCC
days as on March 01, 2020 are Eligible for 9) Who has discretion for restructuring of ZLCC
Resolution Frame work for COVID- 19 Related sanctioned loans under Resolution Frame work
Stress for COVID- 19 Related Stress for personal loans
a) Sub Standard a) Branch
b) Doubtful b) Branches headed by Scale V & above
c) Standard c) HLCC (GM)
d) Loss d) RLCC
4) Only those accounts which are classified as 10) Which committee has been setup by the RBI for
Standard but not in default for more than 30 Resolution under this framework for Corporate
days as on _________ are Eligible for Resolution borrowers with aggregate exposure of Rs 1500
Frame work for COVID- 19 Related Stress crores and above
a) April 01, 2020 a) Narasimhan Committee
b) March 01, 2020 b) K V Kamath Committee
c) April 01, 2021 c) Nayak Committee
d) March 01, 2021 d) Tandon Committee
5) Granting of Moratorium if any under Resolution 11) Criteria for Resolution Frame work for COVID-
Frame work for COVID- 19 Related Stress for 19 Related Stress for personal loans is
personal loans can be given up to ____ a) Reduction in salary due to Covid 19
a) 02 Years b) Loss of Employment due to Covid 19
b) 03 Years c) Total/Partial Shutdown of Business and revenue
c) 04 Years generation is hit due to COVID-19
d) Moratorium cannot be sanctioned d) Any one of the above
6) Resolution Frame work for COVID- 19 Related 12) If the exposures are covered in a Consortium or
Stress for personal loans must be implemented Multiple Banking Arrangement, the resolution
within ______ days from the date of process (RP) will be treated as invoked only
implementation when ______% by value and ___% by number of
a) 60 Days the lending institutions agree for resolution
b) 90 Days a) 75% and 60%

84
b) 60% and 75% of the fund based working capital as on
c) 50% and 50% 31.03.2021
d) 75% and 50% a) Rs. 1 Crores
13) Resolution for corporates in Consortium or b) Rs. 2 Crores
Multiple Banking Arrangement may be invoked c) Rs. 5 Crores
not later than December 31, 2020 and must be d) Rs. 10 Crores
implemented within _______days from the date 19) Granting of Moratorium if any under Resolution
of invocation Frame work for COVID- 19 Related Stress under
a) 90 Days Resolution frame work 2.0 for MSMEs can be
b) 180 Days given up to ____
c) 365 days a) Moratorium cannot be sanctioned
d) None of the above b) 02 Years
14) Resolution frame work 2.0 -Resolution of Covid- c) 03 Years
19 related stress on Micro Small and Medium d) 04 Years
Enterprises (MSMEs) the borrower account 20) Upon implementation of the restructuring plan
should be classified as MSME as on under Resolution frame work 2.0 for MSMEs the
a) Jan 01, 2020 bank shall keep provision of _______% of the
b) Feb 01, 2020 residual debt of the borrower
c) March 01, 2020 a) 10
d) Any day Before implementation of restructuring b) 20
15) Aggregate exposure including Non-fund based c) 30
facilities of all lending intuitions to the borrower d) 40
should not exceed________ under Resolution 21) Resolution frame work 2.0 -resolution of covid-
frame work 2.0 for MSMEs 19 related stress on Individuals and Small
a) 5 crores business aggregate exposure from all lending
b) 10 Crores institutions is should not more than Rs______
c) 30 Crores crore as on _____
d) 50 Crores a) 50 Crores; March 01, 2020
16) Resolution Frame work for COVID- 19 Related b) 50 Crores; March 01, 2021
Stress under Resolution frame work 2.0 must be c) 15 Crores; March 01, 2020
implemented within ______ days from the date d) 15 Crores; March 01, 2021
of implementation 22) Time is given for achievement of Bench Mark
a) 60 Days ratios in respect of the four operational
b) 90 Days parameters, viz. Total Debt / EBIDTA, Current
c) 120 Days Ratio, DSCR and ADSCR, is _______
d) 365 Days a) March 01, 2021
17) If restructuring envisages granting of additional b) October 01, 2021
finance, under Resolution frame work 2.0 the c) March 01, 2022
same shall be extended maximum up to d) October 01, 2022
______% of the fund based working capital as 23) Time is given for achievement of Bench Mark
on 31.03.2021 ratio for achieving the ratio TOL/ATNW is
a) 20 % _______
b) 10% a) March 01, 2021
c) 05% b) October 01, 2021
d) 25% c) March 31, 2022
18) If restructuring envisages granting of additional d) October 01, 2022
finance, under Resolution frame work 2.0 the
same shall be extended maximum up to ______

85
24) Resolution frame work 2.0 -Resolution of Covid- b) September 30, 2020
19 related stress on Micro Small and Medium c) March 31,2021
Enterprises (MSMEs) the borrower should d) March 01, 2020
possess Udyam Registration Number 28) Resolution frame for Covid-19 related stress for
a) Before implementation of Resolution Plan personal shall be invoked not later than
b) After implementation of Resolution Plan a) December 2020
c) As on March 01,2020 b) September 2021
d) As on March 31,2021 c) March 2021
25) Resolution frame work 2.0 -Resolution of Covid- d) March 2020
19 related stress on Micro Small and Medium 29) Under resolution frame work 2.0 In case of
Enterprises (MSMEs) the borrower should be personal loans resolved under this facility half of
_______ Asset as on March 31,2021 the above provisions shall be written back upon
a) Substandard borrower paying at least ______% of the
b) Doubtful Residual Debt without slipping into NPA post
c) Loss implementation of the plan
d) Standard a) 10%
26) Resolution frame work 2.0 -resolution of covid- b) 20%
19 related stress on Individuals and Small c) 30%
business shall be implemented no later than d) 100%
a) March 31,2021 30) Accounts which may have slipped into NPA
b) March 01, 2020 category between April 1,2021 and date of
c) September 30, 2021 implementation of the resolution frame work
d) September 30, 2020 2.0 –for MSMEs may be upgraded as
27) Resolution frame work 2.0 -Resolution of Covid- a) Should not be upgraded
19 related stress on Micro Small and Medium b) Doubtful Assets
Enterprises (MSMEs) shall be invoked not later c) Substandard Assets
than d) Standard Assets
a) September 30, 2021

Answers:

Q A Q A Q A Q A Q A

1 D 7 C 13 B 19 B 25 D

2 A 8 D 14 C 20 A 26 C

3 C 9 C 15 D 21 B 27 A

4 B 10 B 16 B 22 D 28 A

5 A 11 D 17 A 23 C 29 B

6 B 12 A 18 C 24 A 30 D

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 Module F - Forex
Foreign Exchange
1. FATCA means c. Harmonized System
a. Foreign Account Transaction Compliance d. Holding System
Act 8. Which of these items is not included under
b. Foreign Account Tax Compliance Act SCOMET items as per FTP?
c. Foreign Account Transaction Confirmation a. Organisms
Act b. Special Chemicals
d. None of these c. Technologies
2. IGA is an agreement between GOI and d. All of these included
__________ 9. Which of These items specifically
a. France prohibited to be imported from Somalia?
b. United Kingdom a. Rice
c. Sri Lanka b. Wheat
d. USA c. Charcoal
3. Which of these statement/s is/are d. Sugarcane
incorrect? 10. What is the Export performance criteria for
a. In case loan granted by resident individual Four Star Export House in USD million?
and subsequently lender becomes NRI then a. 100
repayment to be made in NRO account or b. 300
other account of the lender in India c. 750
b. In case NRI lender becomes resident d. 500
repayment can also be made to lender’s 11. What is the time limit for remittance to be
account maintained in India completed under import from date of
c. Both 1 and 2 Shipment?
d. None of these a. 3 months
4. Which year FATF (Financial Action Task b. 6 months
Force) established c. 1 year
a. 1975 d. 9 months
b. 1976 12. A person from Nepal and Bhutan can Bring
c. 1989 into India
d. 1995 a. Rs. 15000 only
5. Which of these list is specially attributed to b. Any amount in denomination up to Rs. 100
OFAC? c. Rs. 25000 only
a. Wilful Defaulter d. Rs. 10000
b. Non Cooperative Borrowers 13. What is the ceiling for DIBF bills?
c. SDN a. Rs. 3 Crores
d. None of These b. USD 300,000
6. Which of these is a handholding scheme for c. USD 200,000
Exporters? d. Rs. 5 Crores
a. Udyami Mitra 14. For maximum how many days ECB
b. Niryat bandhu precedes meant for rupee expenditure can
c. Deendayal Antyodaya Yojana be kept as Term Deposit with an AD?
d. TUFS a. 3 Months
7. 'HS' in ITC(HS) stands for b. 15 days
a. Handling System c. 6 months
b. Household Source d. 12 months

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15. What is the upper ceiling in ECB that can be 23. Where exporter opens a credit for purchase
raised under Automatic Route? of goods from supplier of raw materials
a. USD 750 mio against a credit received from overseas
b. USD 100 mio buyer?
c. USD 500 mio a. Back to Back Credit
d. USD 50 mio b. Revolving Credit
16. Expand MAMP in the parlance of ECB c. Stand by letter of Credit
a. Minimum amount meant for payment d. Transferable credit
b. Maximum average Maturity Payment 24. If credit is opened to cover a series of
c. Minimum Average Maturity Payment regular transactions over a longer period, it
d. None of these is called
17. What is the maximum permissible period a. Standby letter of Credit
for trade credits in case of import of capital b. Back to Back Credit
goods? c. Green Clause LC
a. 4 Years d. Revolving Credit
b. 2 Years 25. Which of These parameters can be changed
c. 3 Years while transferring credit under Transferable
d. 1 Year LC?
18. Which Organisation frames UCPDC? a. Amount
a. NATO b. Unit Price
b. ASEAN c. date of Expiry
c. OPEC d. All of these
d. ICC 26. Protection of Banks in case of Force
19. As per Article 3 of UCP -Interpretations, the Majeure is mentioned under which article
term 'Middle of Month' construed as of UCPDC?
a. 15th to 25th day of month a. Article 35
b. 11th to 20th day of month b. Article 37
c. 11th to 21st day of month c. Article 36
d. 10th to 25th day of month d. Article 39
20. As per Article 38 of USPDC how many times 27. In case of a Running PC account, during
a transferable credit can be transferred on inspection it is discovered that the funds
request of Second beneficiary? are not utilised for export, then credit will
a. No restriction no longer be termed as Export credit from
b. Only once a. the beginning
c. Maximum three times b. date of inspection
d. None of these c. Date of calling explanation from the
21. Documents under LC to be examined within borrower
a. 5 days d. Date of receiving justification from
b. 5 banking days borrower
c. 7 banking days 28. Which article of UCPDC says that applicant
d. 10 days is responsible for any adverse
22. Credit as per UCPDC means consequences of foreign law?
a. An irrevocable arrangement a. Article 37
b. constitute definite undertaking b. Article 36
c. issuing bank to honour a complying c. Article 38
presentation d. Article 14
d. All of these

88
 29. In case PC granted to construction d. USD 250 mio or equivalent
contractors, within how many days such PC 35. Which Article of UCPDC is dealt with
should be adjusted? definitions only
a. 360 days a. Article 1
b. 180 days b. Article 3
c. 90 days c. Article 5
d. 365 days d. Article 2
30. Crystallisation of takes place when no 36. In case PCFC adjusted through purchasing
export takes place within a time frame of Foreign exchange from domestic market
a. 360 days interest on PCFC then will be linked to
b. 180 days a. LIBOR
c. 90 days b. EURIBOR
d. 365 days c. G-Sec
31. Average turnover criteria for Diamond d. ECNOS
Dollar Account for last three licensing years 37. Maximum How many FCY accounts can be
is opened each PO in India
a. Rs. 5 Crores a. 5
b. Rs. 7 Crores b. 3
c. Rs. 3 Crores c. 1
d. Rs. 10 Crores d. 2
32. Minimum amount that can be granted by 38. To remit Profit Surplus outside India by
way of PCFC is Branch office following is not compulsory
a. USD 50000 or equivalent a. Audited Balance Sheet
b. USD 10000 or equivalent b. CA certificate
c. USD 1000 or equivalent c. All bank account details of Branch Office in
d. USD 2500 or equivalent India
33. In case of PCFC account monthly interest to d. All are mandatory
be collected from borrower either by sale 39. Concessional rate of interest in Packing
of FCY or by debit of ………. Account credit will be withdrawn in case it is not
a. FCNR(B) adjusted within ….
b. SNRR a. 180 days
c. EEFC b. 90 days
d. Cash Credit c. 300 days
34. Maximum TC can be raised under d. 360 days
automatic route in case of Import 40. Running account facility can be granted
transaction for oil/gas refining and under PC to …….
marketing a. EOUs
a. USD 50 mio or equivalent b. Unit in FTZ
b. USD 100 mio or equivalent c. Units in SEZ
c. USD 150 mio or equivalent d. All of These
Answer
1 B 6 B 11 B 16 C 21 B 26 C 31 C 36 D
2 D 7 C 12 B 17 C 22 D 27 A 32 B 37 D
3 D 8 D 13 B 18 D 23 A 28 D 33 C 38 C
4 C 9 C 14 D 19 B 24 D 29 D 34 C 39 D
5 C 10 D 15 A 20 D 25 D 30 A 35 D 40 D

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 Module G – Treasury Operation & Risk Management

1.IOB has procured software for "RAM Rating" a) Preventing doing highly favorable/unfavorably
from which company? assessment by tweaking the Business Risk
a) CRISL Solutions Pvt. Ltd Parameter
b) CRISIL Risk Solutions Limited b) Preventing doing highly favorable/unfavorably
c) CRISL Risk Solutions Pvt. Ltd assessment by tweaking the Industry Risk
d) CRISIL Risk Ltd Parameter
e) None of the above c) Preventing doing highly favorable/unfavorably
2.Which of the following Software being used for assessment by tweaking the Financial Risk
revised "RAM Rating"? Parameter
a) Java Server Page(JSP) d) Preventing doing highly favorable/unfavorably
b) Active Server Page(ASP) assessment by tweaking the Management Risk
c) Ram Server Page(RSP) Parameter
d) Crisil Server Page(CSP) e) All of the above
e) None of the above 8.When the guard rail becomes operational?
3.Which of the following accounts are not eligible a) If the difference between Business Risk and
to be rated under RAM? Industry Risk grade is more than 3 notches
a) SME Loan of Rs. 1 Cr and above b) If the difference between Business Risk and
b) Non-SME Loan of Rs.2 Cr and above Industry Risk grade is more than 2 notches
c) SME Loan of Rs. 2 Cr and above c) If the difference between Financial Risk and
d) Liquirent Loan of Rs. 2 Crore and above Business Risk grade is more than 2 notches
e) None of the above d) If the difference between Financial Risk and
4.Which of the following are ineligible accounts to Business Risk grade is more than 3 notches
be rated under RAM? e) 1 or 3
a) Housing Loan account of Rs. 2 Cr and above 9.Which of the following statement define "
b) Liquirent Advances of Rs. 1 Cr and above Critical Modifier" in RAM Rating?
c) NPA accounts of 2 Cr and above a) Override the Final Rating and downgrade or cap
d) Loan against Bank Deposit the credit quality of the entity
e) All of the above b) Risk Manager can modify the rating at Final
5.How many Rating Modules are available under stage
RAM? c) Approval authority will modify the rating
a) Six d) ZO/CO can modify the rating
b) Nine e) None of the above
c) Eleven 10.Which of the following are Hygiene Factors?
d) Ten a) Accounts are under SMA 2 Category for the
e) None of the above past 12 months
6.Which of the following additional features have b) Any group/associates entity has been classified
been added in revised "RAM Rating"? as NPA within last 3 years
a) Account Conduct c) Promoters are in RBI list of defaulters
b) Guard Rails d) Negative Net Worth
c) Critical Modifiers e) All of the above
d) Parent-Notch up 11.What is the importance of RAM Rating?
e) All of the above a) To estimate Probability of Default
7.What is Guard Rails? b) For Smooth transition to IND-AS

90
c) To be required for Capital Computation under e) All of the above
Advanced Approach (FIRB & AIRB) under Basel III 17.Which of the following are incorrect in regard
d) To appropriate pricing of the borrower to RAM rating based pricing applicability in
e) All of the above borrowal accounts?
12.One of the criteria for moving from a) Rs. 1 Cr. And above for Non-SME borrower
Standardised approach to Internal Rating Based b) Rs. 2 Cr and above for SME Borrower
approach is that of consistency of rating and c) Rs. 1 Cr and above for SME Borrower
estimation of Probability of default. What is the d) Both 1 & 3
min. years of data consistency in Rating is e) All of the above
required for the above purpose? 18.One borrower has been rated under RAM on
a) 2 Years 01.06.2019 and has been assigned rating in
b) 3 Years Common grade as "IOB 4" after receiving Audited
c) 4 Years financial statement on 01.11.2019, account has
d) 5 Years been re-rated and assigned "IOB 3”. What should
e) None of the above be applicable Interest rated in the account from
13.The new features in RAM Rating like Guard 01.11.2019 onward?
Rails, Critical Modifiers, Parent Notch up, a) Pricing as per IOB 4 only
Management of Foreign Exchange and Fund b) Revised Pricing as per IOB 3 only
Repatriation Risk, Liquidity Risk etc. are available c) On request of the borrower, revised pricing can
for which of the following modules be as per IOB 3 rating
a) Large Corporate d) Revised pricing will be applicable from the date
b) SME Manufacturing of renewal/review
c) SME Service e) Both 1 & 4 are correct
d) Traders 19.If the borrower rating has been downgraded,
e) All of the above the increased interest rate will be effective from
14.What is Parent Notch-up? when?
a) It will improve the subsidiary rating, if they are a) Existing rate will continue till the renewal
having parents support for financial obligations b) New rate will be applicable with immediate
b) It will have no impact on subsidiary company effect
c) It will be utilized only in case of Parents c) Downgrading of rating will not impact Interest
Company Rating Rate
d) Either 2 or 3 are Correct d) Either 1 or 3
e) None of the above are correct e) None of the above
15.When the Management of Foreign Exchange 20.How many layers are involved in finalizing the
and Fund Risk Repatriation Risk has to be rated RAM Rating?
under RAM? a) One
a) If Export Exceeds 40% of Sales b) Two
b) If Export Exceeds 30% of Sales c) Three
c) If Export Exceeds 25% of Sales d) Four
d) If Export Exceeds 20% of Sales e) None of the above
e) None of the above 21.For Trader, account should be rated under
16.What is Liquidity Assessment in RAM Rating? Large Corporate Model, if the Turnover
a) To see the ability to meet the short term exceeds………
obligation a) Rs. 75 Cr
b) To see the ability to meet the long term b) Rs. 50 Cr
obligation c) Rs. 100 Cr
c) To see the Short term solvency ratio d) Rs. 150 Cr
d) 1 and 3 e) None of the above

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22.Which of the following are the correct rating d) Risk of borrower is broken down into Risk
model under RAM for rating the Medium Term Factors and Risk Parameter
Long Term agriculture advances with an e) None of the above
aggregate limit of Rs. 1 crore and above? 28.What is happening in "Stage II" process of RAM
a) Turnover>=Rs. 75 Cr: LCM rating?
b) Turnover<Rs. 75 Cr: Trader a) Risk of borrower is broken down into Risk
c) SME Service Category
d) Both 1 & 2 are correct b) Risk of borrower is broken down into Risk
e) None of the above Parameter
23.Loan of Rs.1 Crore and above to Poultry firm c) Risk of borrower is broken down into Risk
without having Manufacturing Facility to be rated Factors
under which Model of RAM? d) Risk of borrower is broken down into Risk
a) SME Service Factors and Risk Parameter
b) Trader e) None of the above
c) LCM if T/O>=Rs. 75 Cr 29.What is happening in "Stage III" process of
d) Rating is not required RAM rating?
e) None of the above a) Risk of borrower is broken down into Risk
24.Loan of Rs. 2 Crore and above for the purpose Category
of Allied Agriculture Activities like Pisciculture, b) Risk of borrower is broken down into Risk
dairy, sheep rearing etc. to be rated under which Parameter
model? c) Risk of borrower is broken down into Risk
a) SME Service Model of RAM Factors
b) Trader Model if T/O<Rs. 75 Cr d) Risk of borrower is broken down into Risk
c) LCM if T/O>=Rs. 75 Cr Factors and Risk Parameter
d) CRRM Rating e) None of the above
e) Both 2 & 3 30.Which of the following are not a Risk Category
25.KCC loan of Rs. 10 crores to be rated under under RAM Rating?
which model? a) Liquidity Risk
a) SME Service Model of RAM b) Industry Risk
b) Trader Model c) Business Risk
c) Rating is not required d) Financial Risk
d) CRRM Rating e) Management Risk
e) None of the above 31.A borrower has to be rated in how many Risk
26.Loan of Rs. 1 crore and above to Commercial Parameters under RAM?
Real Estate to be rated under which model? a) Eight
a) Turnover>=Rs. 75 Cr: LCM b) Ten
b) Turnover<Rs. 75 Cr: Trader c) Nine
c) SME Service d) Twelve
d) Both 1 & 2 are correct e) Fourteen
e) None of the above 32.Which of the following Risk Category and Risk
27.What is happening in "Stage I" process of RAM Parameter are not correct
rating? a) Industry Risk: Industry Characteristics &
a) Risk of borrower is broken down into Risk Financials
Category b) Business Risk: Market Experience & Market
b) Risk of borrower is broken down into Risk Knowledge
Parameter c) Management Risk: Experience, Risk Appetite,
c) Risk of borrower is broken down into Risk Market Reputation & Transparency
Factors

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d) Financial Risk: Past Financials, Future Financial 39.What is the Investment Grade Rating in RAM
Position, Financial Flexibility and Liquidity Model?
Assessment a) IOB 1 to IOB 5
e) None of the above b) IOB 6 to IOB 10
33.What is the scoring scale of each Risk Factor c) IOB 1 to IOB 6
under RAM Rating? d) IOB 1 to IOB 7
a) 1 to 6 e) None of the above
b) 1 to 10 40.What is the " Hurdle Rate" for RAM Rating?
c) 1 to 8 a) IOB 5 for Priority & IOB 6 for Non-Priority
d) 1 to 12 b) IOB 6 for Priority & IOB 7 for Non-Priority
e) Both 1 & 2 are Correct c) IOB 5 for Non Priority and IOB 6 for Priority
34.What is the weightage for " Account Conduct" d) IOB 4 for Non Priority and IOB 5 for Priority
under Large Corporate Model of RAM? e) None of the above
a) 20% 41.Which of the following RAM Ratings are not
b) 25% properly mapped with External Rating?
c) 15% a) IOB 1-AA
d) NIL b) IOB 6-BB
e) None of the above c) IOB 7-BB to B
35.Financial Risk Weightage are not incorrect in d) IOB 3-AA to A
which of the following model? e) None of the above
a) LCM-35% 42.Under Infra Modules (Like Power, Road &
b) SME Manufacturing-40% Telecom) with Project in RAM rating, the rating
c) SME Service-35% scale is from…………………to…………….
d) Real Estate Development-35% a) P1 to P7
e) NBFC Model-25% b) P1 to P8
36.What is Risk Weightage for Management Risk c) P1 to P9
under Large Corporate Model? d) P1 to P10
a) 30% e) None of the above
b) 20% 43.What is the periodicity of externally unrated
c) 15% accounts, where the exposure is Rs. 200 Cr and
d) 25% above?
e) 40% a) Bi-Monthly
37.What is the range of score for IOB3 under Ram b) Quarterly
Rating? c) Monthly
a) 6.50 to 7.50 d) Half Yearly
b) 5.00 to 5.75 e) Yearly
c) 4.25 to 5.00 44.TR 2 under RAM rating is mapped with IOB
d) 3.50 to 4.25 Common Scale of…………
e) None of the above a) IOB 2
38.A borrower is rated under SME Service Model b) IOB 3
and assigned SER 5 rating, what is the rating of c) IOB 4
borrower under Common IOB Scale? d) IOB 3 & 4
a) IOB 5 e) IOB 2 & 3
b) IOB 6 45.Common Scale rating of IOB 7 under RAM is
c) IOB 7 mapped with External Rating of……….
d) IOB 4 a) BBB-BB
e) None of the above b) BB-C
c) BB-B

93
d) A-BBB e) CRSA 7
e) None of the above 52.CRSA 2 form under CRCC relates to….
46.Common Scale rating of IOB 4 under RAM is a) Segment wise Exposure for Non Fund Based
mapped with External Rating of………. Details
a) AA-A b) Segment wise Exposure for Fund Based Details
b) BBB c) NPA Details
c) BBB-BB d) Eligible Guarantee
d) A-BB e) None of the above
e) A-BBB 53.Which of the following CRCC form to be
47.In IOB, the external rating is mandatory for a certified by Statutory/Concurrent Auditor?
new connection W.e.f. 01.04.2020 with aggregate a) CRSA 5
exposure of Rs. …………. and above. b) CRSA 7
a) Rs. 100 Cr c) CRSA 9
b) Rs. 75 Cr d) CRSA 10
c) Rs. 150 Cr e) None of the above
d) Rs. 50 Cr 54.CRSA 6 form under CRCC relates to….
e) Rs. 25 Cr a) Segment wise Exposure for Non Fund Based
48.Who will be the approval authority for Ram Details
Rating, if the account is sanctioned by at CAC level b) Segment wise Exposure for Fund Based Details
and branch is headed by Scale III? c) NPA Details
a) Branch Head d) Eligible Guarantee
b) RO Advance Department e) None of the above
c) ZO advance Department 55.Who will create the Rating Master for
d) Corporate Credit Department, Central Office borrowal account for Fresh Rating under RAM?
e) Risk Manager, ZO a) Branch head in SCALE-IV & above
49.Risk Factor is scored between "1 to 6" for b) RO Advance Department
which of the model under RAM? c) ZO Advance Department
a) NBFC Model d) RO Risk Manager
b) Contractor Model e) Risk Management Department, CO
c) SME Service Model 56.Your branch had sanctioned a Term Loan of Rs.
d) All the model 2 Crore to a MSME borrower and account was
e) Only 1 & 2 rated under RAM rating. After 1 year on review of
50.Loan of Rs. 10 cr for Food Processing unit term loan account, outstanding in term loan
having T/O of Rs. 100 cr and classified under account is Rs. 90 lacs, please tell us the captioned
Agriculture Advances to be rated under which account will be rated under which module
model a) CRRM Rating because outstanding is less than
a) Trader Model Rs. 1 cr
b) SME Model b) RAM rating, once account is rated under RAM it
c) Large Corporate Model should rate under RAM irrespective of exposures
d) No need of Rating c) Will take the clarification from Risk
e) None of the above Management Department
51.Which of the following CRCC form shown the d) Term Loan account need not be rated every
details of Eligible Collateral for Credit Risk year
Mitigation? e) NOA
a) CRSA 1 57.Which of the following corporate entities,
b) CRSA 2 interest rate will be linked to external rating (if
c) CRSA 3 available) not as per RAM rating (Internal Rating)
d) CRSA 5 a) LT Model

94
b) NBFC Model c) Rating done again when a new partner is
c) SME Model inducted
d) Trader Model d) None of the above
e) 1 & 2 e) NOA
58.Which of the following are considered to be 64.In the absence of external rating, how many
rating downgrade times in a year should credit exposure of 200
a) AAA+ to AAA- crores and above be internally rated?
b) A+ to A- a) 2
c) AAA to AA b) 3
d) AA+ to AA- c) 4
e) 1, 2 & 4 d) 1
59.IOB 4 under RAM rating means………. e) 5
a) Highest Safety 65. Rating exercise for accounts is to be
b) Higher Safety undertaken at the time of …….
c) High Safety a) sanction of limits
d) Low Safety b) renewal of limits
e) Adequate Safety c) enhancement of limits
60.As per RBI guidelines, from 01.04.2019, what is d) None of the above
the risk weight for unrated advances account e) all the above
having exposure of ₹ 200 crores or above from 66.What does IOB 2 rating indicate?
banking system a) Highest safety
a) 150% b) high safety
b) 75% c) adequate safety
c) 100% d) moderate safety.
d) 50% e) NOA
e) 200% 67.What does credit rating indicate?
61.As part of risk management measure our Bank a) How much credit has been availed by the
has decided that interest rate concession for non- borrower
consortium account below a hurdle rate is b) How much credit can be sanctioned
withdrawn from 15.06.2018. What is the hurdle c) Record of default committed by the borrower
rate for rating? d) Estimation of risk of default
a) A+ e) NOA
b) BB 68.Which of the following is a measure of risk?
c) B+ a) Duration
d) A- b) Standard deviation
e) BB- c) Beta
62.What is meant by dynamic rating? d) all the above
a) A rating which changes with size of loan e) NOA
b) Reviewing the rating more than once a year 69.New CRRM rating software has been procured
c) Rating which is linked to security offered from which company?
d) Rating depending on constitution of the a) M/s ICRA Management Consulting Services Ltd
borrower b) M/s CRISIL Management Consulting Services
e) NOA Ltd
63.Which among the following is a case of c) M/s CARE Management Consulting Services Ltd
dynamic rating d) Own developed Software
a) Re rating done after receiving audited balance e) None of the above
sheet 70.CRRM Rating is applicable for which account?
b) Rating done by 2 different agencies a) <=Rs. 1 Crore

95
b) <Rs. 1 Crore c) Five
c) > Rs. 2 Lac<=Rs. 1 Cr d) Two
d) >Rs. 2 Lac<Rs. 1 Cr e) None of the above
e) None of the above 78."Micro Model 1" under CRRM rating is
71.How many rating scales are available under applicable for which of the following account?
CRRM rating? a) With exposure up to Rs. 2 Lacs
a) Five b) With exposure above Rs. 2 Lacs
b) Seven c) With exposure between Rs. 2 Lacs to Rs. 10
c) Nine Lacs
d) Ten d) With exposure up to Rs. 5 Lacs
e) None of the above e) None of the above
72.Expand the word "TTC”? 79."Micro Model 2" under CRRM rating is
a) Through the Cycle applicable for which of the following account?
b) Temporary Teaching Centre a) With exposure up to Rs. 2 Lacs
c) Through the Credit b) With exposure above Rs. 2 Lacs
d) Through the Centre c) With exposure between Rs. 2 Lacs to Rs. 10
e) None of the above Lacs
73.Expand the word "PIT"? d) With exposure up to Rs. 5 Lacs
a) Paisa in Time e) None of the above
b) Power in Time 80.Small and Medium Enterprise Model is
c) Point in Time applicable for which of the following account?
d) Proud in Time a) With exposure between Rs. 10 Lacs to Rs. 1
e) None of the above Crore and engaged in Manufacturing Entp.
74.Which of the following parameters are not b) With exposure between Rs. 10 Lacs to Rs. 1
being looked into "TTC" under CRRM Rating? Crore and engaged in Service Enterprises
a) ROCE c) With exposure between Rs. 2 Lacs to Rs. 1
b) EBIDTA/Net Sales Crore and engaged in Service Enterprises
c) Average Sales d) With exposure between Rs. 2 Lacs to Rs. 1
d) Gearing Ratio Crore and engaged in Manufacturing Entp.
e) Cash flow adequacy e) None of the above
75.Which of the following parameters are being 81.Small and Business Service Model is applicable
looked into "PIT" under CRRM Rating? for which of the following account?
a) ROCE a) With exposure between Rs. 10 Lacs to Rs. 1
b) EBIDTA/Net Sales Crore and engaged in Manufacturing Entp.
c) Average Sales b) With exposure between Rs. 10 Lacs to Rs. 1
d) Gearing Ratio Crore and engaged in Service Enterprises
e) Cash flow adequacy c) With exposure between Rs. 2 Lacs to Rs. 1
76.Which of the following features are not Crore and engaged in Service Enterprises
available under CRRM rating? d) With exposure between Rs. 2 Lacs to Rs. 1
a) Project Risk Crore and engaged in Manufacturing Entp.
b) Conduct of Account e) None of the above
c) Parents Notch up 82.How many models are available under
d) Guard Rails Agriculture segment of New CRRM Rating?
e) None of the above a) Two
77.How many rating modules are available under b) Four
New CRRM? c) Seven
a) Four d) Five
b) Seven e) Three

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83.Location Risk Parameter under Agri Processing e) None of the above
Unit(APU) model in CRRM Rating is applicable for 89.What is the Hurdle Rate under New CRRM
which of the following activity Rating?
a) All a) IOB 6 for Priority and IOB 5 for Non-Priority
b) Only for Plantation b) IOB 7 for Priority and IOB 6 for Non-Priority
c) Only for Food Processing c) IOB 7
d) both 1 & 2 d) IOB 6
e) None of the above e) IOB 8
84.Which of the following accounts cannot be 90.If the borrower is re-rated under New CRRM
rated under CRRM? rating and has been assigned IOB 8 and the
a) Accounts backed by 100% Liquid Security, Jewel Branch is headed by Scale III. Who can do the
Loans renewal without enhancement?
b) Agri Loan under KCC Schemes a) Branch Head
c) Loan to SHG b) RLCC and above
d) NPA Advances c) No one can do the renewal as the HURDLE Rate
e) All of the above is IOB 7
85.Who should be the validation authority under d) Either 1 or 2
CRRM rating for exposure up to Rs. 40 Lacs and e) None of the above
branch is headed by Scale II? 91.If the borrower is re-rated under new CRRM
a) RO advance Department rating and has been assigned IOB 8, RLCC can do
b) RO Risk Manager the renewal with enhancement in exceptional
c) Validation not required cases, if some of the conditions are satisfied.
d) ZO Risk Manager Which of the following are not a correct
e) None of the above condition?
86.Who should be the approval authority under a) Satisfactory Banking Relationship of at least 5
CRRM rating for exposure above Rs. 40 Lacs and Years
branch is headed by Scale III and below? b) The Rating downgrade is temporary in nature
a) RO advance Department c) There is a strong group support available for
b) RO Risk Manager the borrower
c) Validation not required d) There is a collateral security coverage of 60%
d) ZO Risk Manager and above
e) None of the above e) None of the above
87.Who should be the validation authority under 92.Who can consider the Fresh Limit for borrower
CRRM rating for exposure above Rs. 40 Lacs and rated under CRRM rating and assigned IOB 8?
branch is headed by Scale III and below? a) Branch Head of Scale IV and above
a) RO advance Department b) RLCC
b) RO Risk Manager c) ZLCC only
c) Validation not required d) CO only
d) ZO Risk Manager e) None of the above
e) None of the above 93.What is the Investment Grade under CRRM
88.Who should be the validation authority under rating?
CRRM rating for exposure above Rs. 40 Lacs and a) IOB 1 to IOB 5
branch is headed by Scale III and below, if the b) IOB 1 to IOB 6
sanctioning authority is ZO/CO? c) IOB 1 to IOB 7
a) RO advance Department d) IOB 1 to IOB 4
b) RO Risk Manager e) None of the above
c) Validation not required 94.Which of the following accounts cannot be
d) ZO Risk Manager rated under New CRRM Rating?

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a) Standalone Term Loan to MSME c) ED
b) Online Processing of SME Loan up to Rs. 10 d) MD & CEO
Lacs e) NOA
c) Loan processed through psbloansin59minutes 100.What is the periodicity of submitting FMR 3
d) Housing Loan of Rs. 50 Lacs return to RBI
e) All of the above a) Fortnightly
95.RBI has classified Frauds in Bank in how many b) Monthly
categories c) Quarterly
a) 5 d) Half-yearly
b) 4 e) NOA
c) 7 101.If the amount of Fraud involved is >=Rs.
d) 6 10,000.00<Rs. 1 L, the complaint should be
e) NOA lodged with which agency
96.As per the Fraud Risk Management Policy, a) CID Wing of State Police
reporting of fraud to RBI should be done only with b) State Police
the approval of competent Authority. Who are c) CBI
the competent authority for cases where amount d) No Need to Lodged anywhere
involved is less than Rs. 1 Lakh? e) NOA
a) Regional Manager 102.If the amount of Fraud involved is >=Rs.
b) Zonal Manager 1L<Rs. 3 Cr, the complaint should be lodged with
c) General Manager, Inspection Department, which agency
Central Office a) CID/EOW Wing of State Police
d) General Manager, Risk Management b) State Police
Department, Central Office c) CBI
e) NOA d) No Need to Lodged anywhere
97.The suspected fraud/frauds detected at e) NOA
Branch should be reported to Controlling Office 103.If the amount of Fraud involved is >=Rs. 3
within__________ Cr<=Rs. 25 Cr, the complaint should be lodged
a) 24 hrs. with which agency
b) 2 days a) CID/EOW Wing of State Police
c) 3 days b) State Police
d) 7 days c) CBI
e) NOA d) No Need to Lodged anywhere
98.What is the correct form used for reporting e) NOA
quarterly Fraud Outstanding to RBI 104.If the amount of Fraud involved is >=Rs. 25
a) FMR-1 Cr<=Rs.50 Cr, the complaint should be lodged
b) FMR-2 with which agency
c) FMR-3 a) Anti-Corruption wing of CBI
d) FMR-4 b) EOW of CBI
e) NOA c) Banking Security and Fraud Cell(BSFC) of CBI
99.As per Fraud Risk Management Policy, at CO d) Joint Director(Policy) CBI, HQ, New Delhi
level all the frauds involving an amount of Rs. 1 e) NOA
crore and above should be monitored and 105.If the amount of Fraud involved is >Rs. 50 Cr,
reviewed exclusively by the Special Committee of the complaint should be lodged with which
the Board constituted for this purpose. Who will agency
be chaired this Special Committee a) Anti-Corruption wing of CBI
a) GM of Inspection Department, CO b) EOW of CBI
b) GM of Risk Management Department, CO c) Banking Security and Fraud Cell(BSFC) of CBI

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d) Joint Director(Policy) CBI, HQ, New Delhi e) NOA
e) NOA 112.A foreign exchange dealer forget to square
106.Reporting of frauds to be done to RBI within the over brought position in a foreign currency. It
___________ from the date of detection of is a…
frauds, if the amount involved is Rs. 5 Crore and a) foreign exchange risk
above b) settlement risk
a) 15 days c) liquidity risk
b) 7 days d) operational risk
c) 21 days e) NOA
d) 3 Weeks 113.The risk that loss may arise on account of
e) NOA trading in SLR and other securities by a bank is
107.Reporting of frauds to be done to RBI within classified as:
___________ from the date of detection of a) Credit Risk
frauds, if the amount involved is less than Rs. 5 Cr b) Investment Fluctuation Risk
a) 15 days c) Trading Risk
b) 7 days d) Operation Risk
c) 21 days e) Market Risk
d) 3 Weeks 114.Risk that associated with failure of internal
e) NOA processes of a bank or business organization:
108.Enhancement is not possible by any layer of a) Settlement Risk
authority, if the borrower rating is b) Procedural Risk
___________under new CRRM rating c) Operational Risk
a) IOB 7 and above d) Credit Risk
b) IOB 8 and above e) Market Risk
c) IOB 9 & above 115.A bank has failed to meet its obligation on
d) IOB 10 Only account of a payment on due date due to its
e) NOA incapacity to pay. What kind of risk it is…?
109.Which of the following rating are non- a) credit risk
investment grade under New CRRM rating b) liquidity risk
a) SMM 6 c) settlement risk
b) SBS 5 d) payment risk
c) M1C 6 e) All the above
d) M2C 5 116.Risk associated with changes in the credit
e) 1 & 3 profile of the borrowers and counter parties, is
110.SBS4 is equivalent to which of the rating called
under Common Scale a) credit risk
a) IOB 4 b) market risk
b) IOB 6 c) counter-party risk
c) IOB 7 d) liquidity risk
d) IOB 5 e) 1 & 2
e) IOB 3 117.The customer service in a bank branch, has
111.The Risk that the interest rate of different been disrupted for 2 hours, due to failure of the
assets and liabilities may change in different central server. What type of risk it is?
magnitude is called? a) reputational risk
a) Embedded Risk b) systemic risk
b) Maturity Risk c) operational risk
c) Basis Risk d) settlement risk
d) Price Risk e) All the above

99
118.When the bank is selling 3rd party products, ABC Global Factors Ltd. As per Basel-III, M/s XYZ
which type of risk is involved: Bank has to maintain Capital adequacy at
a) reputational risk consolidated (Group Level) as well as Solo level,
b) operational risk which of the above subsidiaries will not be
c) credit risk included for the purpose of Capital Adequacy at
d) liquidity risk Consolidated level?
e) All the above a) 1,2&5
119.Validation at RO/ZO level is required under b) 3 &4
New CRRM rating for fund based limit of Rs. c) 3,4 &5
……….. d) All of the above
a) For all amount e) None of the above
b) >Rs. 40 Lacs 125.Which of the following are not going concern
c) >=Rs. 40 Lacs capital?
d) >Rs. 10 Lacs a) Surplus transferred from P &L
e) NOA b) Share Premium on account issuance of Equity
120.Rating under new CRRM rating is generally Capital
valid for _____________ c) Revaluation Reserve @ discount of 55%
a) 12 months from date of initialization d) FCTR @ 25% discount
b) 12 months e) None of the above
c) 12 months from the date of finalization 126.CCB of 2.5% has to be maintained by the
d) 12 months from the date of sanction of loan banks under Basel III as per RBI latest by which
e) NOA date?
121.How many Institutions are member of Basel a) 31.03.2021
Committee on Banking Supervision(BCBS)? b) 31.03.2020
a) 10 c) 31.03.2019
b) 28 d) 31.09.2020
c) 45 e) 31.09.2021
d) 55 127.Which of the following are not elements of
e) None of the above Common Equity Tier 1 Capital(CET1)?
122.Leverage Ratio, Capital Conservation a) Stock surplus resulting from issuance of
Buffer(CCB), Countercyclical Buffer introduces in common shares
which of the following BCBS recommendation? b) Capital Reserves/surplus arising out of sale of
a) Basel I assets
b) Basel II c) DTA (Timing difference) to the extent of 10%
c) Basel 2.5 d) Revaluation reserve @ discount of 45%
d) Basel III e) Balance in P&L account at the end of Previous
e) None of the above Financial Year
123.Which of the following approach are not a 128.To consider Revaluation Reserve being part of
measure of capital calculation for Operational Risk CET1, which of the following conditions are to be
under Basel III? satisfied?
a) The Standardized Approach(TSA) a) Discount @ 55%
b) Basic Indicator Approach(BIA) b) Readily Saleable, free from all legal impediment
c) Internal Rating Based Approach c) Revaluations are realistic, in accordance with
d) Advanced Measurement Approach Indian Accounting Standard
e) 1 & 3 d) Valuations are obtained from two Independent
124.M/s XYZ Bank has following subsidiaries: 1) valuers at least once in a 3 years
M/s ABC Housing Finance Ltd 2) M/s ABC Card Ltd e) All of the above
3) ABC Life Insurance 4) ABC General Insurance 5)

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129.To consider PNCPS (Perpetual Non- 134.What is the Min. Leverage ratio prescribed by
cumulative preference share) as Additional Tier 1 RBI under Basel III for Banks in India?
Capital, Call option can be exercised only after the a) 4.50%
instruments has run at least for ……. Years b) For D-SIB: 4% & for Others: 3.50%
a) 5 c) 4%
b) 3 d) For D-SIB-4.50% & for Others: 4%
c) 6 e) None of the above
d) 10 135.The Capital Measure for computing Leverage
e) None of the above Ratio, comprises of……
130.Your Bank has issued debts instruments of Rs. a) Tier 1 Capital
1000 Cr to raise the Tier 2 Capital on 31.03.2018 b) Common Equity Only
for 5 years to be matured on 31.03.2023, as of c) Tier 2 Capital Only
31.03.2020, how much can be considered under d) Both Tier 1 as well as Tier 2 Capital
Tier 2 Capital? e) None of the above
a) Rs. 1000 Cr 136.Expand the word CCCB in Basel II context?
b) Rs. 600 Cr a) Countercyclical Capital Conservation Buffer
c) Rs. 200 Cr b) Countercyclical Capital Buffer
d) Rs. 400 Cr c) Countercyclical Credit Conversion Buffer
e) Rs. 800 Cr d) Countercyclical Credit Buffer
131.PCPS/RNCPS/RCPS issued to raise Tier 2 e) None of the above
Capital by bank will be classified under which 137.CCCB may vary from…… to ……. Of Risk
schedule of the Balance Sheet? Weighted Assets(RWAs)
a) Schedule 2 a) 0;1%
b) Schedule 3 b) 0; 1.5%
c) Schedule 4 c) 0;2%
d) Schedule 5 d) 0;2.50%
e) Schedule 6 e) None of the above
132.A bank is having Common Equity Tier 1 138.CCCB will be invoked, when the Credit to GDP
Capital at 6.80%, how much earning they have gap reaches certain threshold. What is the Lower
conserve for Min. Capital Conservation Buffer in and Upper Threshold in this regard?
next year? a) 3 to 15%
a) 60% b) 0 to 15%
b) 100% c) 5 to 15%
c) 80% d) 0 to 15%
d) 40% e) None of the above
e) NIL 139.Liquidity Coverage Ration(LCR) under Basel III
133.Which of the following statements are is prescribed by RBI and it is implemented W.e.f.
correct in respect of CCB: (1) Min. CCB is 2.5%, January 1,2015 in a phased manner and 100%
comprised of CET1 (2) Capital Distribution should be achieved by ………….
constraint will be imposed, if bank falls below the a) Jan 1,2019
Min. CCB 3) Min. CCB of 2.50% has to be achieved b) March 31,2019
by 30.09.2020 4) Min. CET 1 + CCB should be 8% c) Jan 1,2020
a) 1 & 2 d) March,2020
b) 2 & 3 e) April 1,2021
c) 1,2 & 3 140.Net Stable Funding Ratio(NSFR) will be
d) 2,3 & 4 implemented from which date?
e) All of the above a) 01.04.2020
b) 01.10.2020

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c) 01.04.2021 147.RBI can increase the Min. Regulatory
d) 01.10.2021 Requirement for Capital under which Pillar of
e) None of the above Basel-III
141.Which of the following Banks are not under a) Pillar 1
D-SIB (Domestically Systemically Important Banks) b) Pillar 2
of RBI list? c) Pillar 3
a) SBI d) RBI Can't increase as it is set by Basel
b) PNB e) None of the above
c) ICICI Bank 148.In which country the headquarter of BIS
d) HDFC Bank (Banks for International Settlement) locate?
e) None of the above a) France
142.Market Discipline comes under which Pillar of b) Germany
Basel III? c) Japan
a) Pillar 1 d) Switzerland
b) Pillar 2 e) USA
c) Pillar 3 149.Expand the word BCBS….
d) Pillar 4 a) Banker's committee on Banking Supervision
e) None of the above b) Basel Committee on Banking Supervision
143.As of March 31,2020, What should be MTC c) Bharat Committee on Banking Supervision
(Min. Total Capital) + CCB (Capital Conservation d) Basel Committee on Banking Service
Buffer) for Banks operated in India? e) None of the above
a) 11.50% 150.Which of the following measurement is
b) 10.50% related to Credit to GDP gap?
c) 10.88% a) CCB
d) 10.68% b) CCCB
e) 10.13% c) Leverage Ratio
144.Which of the following approaches used in d) Liquidity Coverage Ratio
our Bank for Capital Computation on Operational e) None of the above
Risk? 151.Which of the following are not approved
a) Basic Indicator Approach(BIA) Credit Rating Agency by RBI for the purpose Risk
b) The Standardized Approach Weight Computation under Standardised
c) Advanced Measurement Approach Approach?
d) Foundation Internal Rating Based Approach a) Brickwork
e) None of the above b) CRISIL
145.Which of the following approaches used in c) CIBIL
our Bank for Capital Computation on Market Risk? d) ICRA
a) The Standardized Duration Method e) Informetrics
b) The Standardized Maturity Method 152.Which of the following are not eligible
c) Internal Rating Module International Credit Rating Agency under Basel III
d) Foundation Internal Rating Based Approach for purpose of Risk Weight Computation under
e) None of the above Standardised Approach?
146.Which of the following approaches used in a) Fitch
our Bank for Capital Computation on Credit Risk? b) Moody
a) Standardized Approach c) S & P
b) Foundation Internal Rating Based Approach d) ICRA
c) Advanced Internal Rating Based Approach e) All of the above
d) None of the above 153.Which of the following combination of Risk
e) All of the above Weight is not correct: (a) CGTMSE-0% (b) Claims

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on Central Government-0% (c) The Claim on AAA-0% (b) AA-30% (c) A-50% (d) BBB-150% (e)
ECGC-0% (d) State Govt. Guarantee Claims-0% (e) Unrated-150%?
Direct Loan to State Govt.-0% a) (a), (d) & (e)
a) (a) & (d) b) (b) & (c)
b) (c) & (d) c) (a) & (e)
c) (a) & (e) d) (a) & (b)
d) All of the above e) (a) & (c)
e) None of the above 160.What is the Risk weight for "Claims on Non-
154.What is the risk weight for " Claims on Resident Corporate" for unrated exposure?
Foreign Sovereign" for 'B' rated exposure? a) 20%
a) 20% b) 50%
b) 50% c) 100%
c) 100% d) 150%
d) 150% e) None of the above
e) None of the above 161.Which of the following are not included
155.What is the risk weight for " Claims on under Regulatory Retail Portfolio as per RBI
Foreign Public Sector Enterprises" for "A" rated guidelines on Basel III?
exposure? a) Investment in Securities
a) 20% b) Mortgage Loan
b) 50% c) Loans and Advances to Bank's own staff
c) 100% d) Consumer Credit
d) 150% e) All of the above
e) None of the above 162.Which of the following Qualifying Criteria are
156.What is the Risk Weight for "Multilateral not correct for "Regulatory Retail Portfolio-RRP"?
Development Bank"? a) T/o <= Rs. 50 Cr.
a) 0% b) Exposure to one counterpart should not exceed
b) 20% 0.2% of total RRP
c) 50% c) Maximum loan to single individual should not
d) 100% exceed Rs. 5 Cr
e) 150% d) NPAs under Retail loans are to be excluded
157.What is the claims on " Foreign Banks" for from the overall RRP
Unrated Exposure? e) All of the above
a) 0% 163.What is the Risk Weight for Education Loan of
b) 20% Rs. 20 Lacs for Foreign Study?
c) 50% a) 75%
d) 100% b) Rs. 15 Lacs
e) 150% c) 100%
158.Which of the following combination for Short d) Rs. 20 lacs
term claim on corporate are not incorrect: (a) e) None of the above
A1+-0% (b) A1-30% (c) A2-50% (d) A3-150% (e) 164.What is the Risk Weight for Housing Loan for
Unrated-150%? Rs. 75 lacs having LTV ratio of 70% W.e.f.
a) (a), (d) & (e) 16.10.2020?
b) (b) & (c) a) 35%
c) (a) & (e) b) 25%
d) (a) & (b) c) 20%
e) (a) & (c) d) 50%
159.Which of the following combination for Long e) 100%
term claim on corporate are not incorrect: (a)

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165.Your branch has sanctioned one Housing 171.Expand the word "CCF"
Loan of Rs. 40 lacs having LTV ratio of 75% on a) Capital Conservation fund
01.06.2017. Compute the Risk Weight Assets as of b) Credit Conversion Fund
31.03.2020, if the present outstanding in the loan c) Credit Conversion Factor
is Rs. 30 lacs d) Counter Cyclical Fund
a) Rs. 15 Lacs e) None of the above
b) Rs. 10.50 Lacs 172.For which of the following facilities "Credit
c) Rs. 20 Lacs Conversion Factor" will apply?
d) Rs. 10 Lacs a) Term Loan
e) None of the above b) Cash Credit
166.What is the risk weight for NPA where the c) Packing Credit
Specific provision is 15% of the Outstanding? d) LG
a) 50% e) None of the above
b) 100% 173.What is the Credit Conversion Factor(CCF) for
c) 150% LC(A&E)
d) 75% a) 20%
e) None of the above b) 50%
167.Your branch has sanctioned a Pushpaka Loan c) 100%
of Rs. 10 lacs. How much capital, bank has to d) 150%
provide @ 11.50% of RWA? e) None of the above
a) Rs. 1.15 Lacs 174.Compute the capital consumption @ 11.50%
b) Rs. 10 Lacs of RWA for LG(Performance) Limit of Rs. 20 Lacs
c) Rs. 1.50 Lacs and LG(Financial) Limit of Rs. 30 Lacs sanctioned
d) Rs. 2.50 Lacs to a MSME borrower classified under RRP?
e) None of the above a) Rs. 4.45 Lacs
168.What is the risk weight for Unhedged Foreign b) Rs. 4.60 Lacs
Currency Exposure, if Likely loss/EBID is up to c) Rs. 5.60 Lacs
75%? d) Rs. 5.45 Lacs
a) 20% e) None of the above
b) 50% 175.What is the Credit Conversion Factor(CCF) for
c) 75% Forward Purchase Contract for maturity of less
d) 100% than one year?
e) 150% a) 2%
169.What is the risk weight for Venture Capital b) 10%
exposure? c) 15%
a) 50% d) 20%
b) 100% e) None of the above
c) 150% 176.Which of the following are not Eligible
d) 20% Financial Collateral for Credit Risk Mitigation?
e) None of the above a) Cash
170.Compute a Risk Weight Asset for a loan of Rs. b) Gold
30 lacs sanctioned to a staff under Staff Housing c) NSC
Loan Scheme? d) Surrender Value of LIC
a) Rs. 10.50 Lacs e) Land & Building
b) Rs. 6 Lacs 177.What is "Haircut"?
c) Rs. 30 Lacs a) Cutting of Hair at Saloon
d) Rs. 15 Lacs b) Adjustment in collateral and exposure
e) None of the above c) It is nothing but a Risk Weight

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d) It is nothing but a Credit Conversion Factor e) All of the above
e) None of the above 183.Under the IRB, exposures have been majority
178.Haircut apply for collateral will be at…… and classified in how many categories?
for exposure will be at…. a) Eight
a) Premium & Discount b) Six
b) Discount & Premium c) Seven
c) Premium & Premium d) Five
d) Discount & Discount e) Ten
e) None of the above 184.How many sub classes are there under IRB for
179.Which of the following combination are specialized lending under Corporate exposure?
correct for applying "Haircut" on Collateral: (a) a) Four
NSC-0% (b) Currency Risk-8% (c) Gold-15% (d) b) Five
Cash in the same currency -0% c) Six
a) All d) Seven
b) Only a & b e) Eight
c) Only a, b & c 185.Which of the exposure categorization are
d) Only b & c incorrect under IRB approach?
e) Only c & d a) Corporate
180.Your branch has sanctioned a loan of Rs. 100 b) Sovereign
lacs to a MSME customer against collateral c) Bank
security in the form of Bank deposit to the tune of d) Consumer Credit
Rs. 20 Lacs, Gold valued @ Rs. 40 lacs. On the e) Equity
basis of above information, compute capital 186.Under the Foundation Internal Rating Based
requirement @ 11.50% of RWA for above Approach(F-IRB), Bank can give their own
exposure? The exposure is classified under RRP. estimates for….
a) Rs. 3.97 lacs a) Probability of Default
b) Rs. 5.29 lacs b) Loss Given Default
c) Rs. 4.97 lacs c) Exposure at Default
d) Rs. 6.29 lacs d) Maturity
e) None of the above e) All of the above
181.Which of the following statements are 187.Under the Advanced Internal Rating Based
incorrect in relation to Advanced Approach (IRB Approach(A-IRB), Bank can give their own
Approach) for Credit Risk? estimates for….
a) Risk Weight mostly derived by the Bank a) Probability of Default
b) Risk Weight based upon the Internal Rating b) Loss Given Default
c) Risk Weight based upon the External Rating c) Exposure at Default
d) Risk weight derived from estimation of PD, d) Maturity
LGD, EAD and Maturity e) All of the above
e) All of the above 188.Under which asset class, bank can give their
182.Which of the following are pre-requisite for own estimate for Probability of Default(PD), Loss
adoption of advanced approach? Given Default(LGD), Exposure at Default(EAD) for
a) Robust data management should be in place, both F-IRB and A-IRB approach?
tested and documented a) Corporate
b) Internal Model Development b) Sovereign
c) Validation, including model predictive power c) Bank
assessment d) Retail
d) Incorporating model output in business e) Equity
decision making

105
189.Under Basel approach, bank estimates two b) Difference should be deducted from Common
type of credit losses. Name these losses? Equity Capital
a) Interest Loss, Principal Loss c) Difference should be deducted from Tier 1
b) Expected Loss & Unexpected Loss Capital
c) Book Loss & Actual Loss d) Difference should be added in Common Equity
d) both 1 & 2 Capital
e) None of the above e) None of the above
190.Bank generally managed expected loss by 196.To what extent excess provision over
which of the following measures? Expected loss may reckon in Tier 2 Capital
a) Pricing a) Min. 0.6%
b) Provision b) Max. 1%
c) Providing Regulatory Capital c) No Ceiling
d) both 1 & 2 d) Max. 0.6%
e) All of the above e) None of the above
191.Bank provides regulatory capital to cover 197.Under both approach, F-IRB & A-IRB, Bank
which losses? can estimate for Probability of Default and it
a) Expected Loss should be…………specific.
b) Unexpected Loss a) Borrower
c) Both for Expected Loss as well as for b) Exposure
Unexpected Loss c) Borrower as well as Exposure
d) Neither for Expected Loss nor for Unexpected d) Neither borrower nor exposure
loss e) None of the above
e) Either for Expected Loss or for Unexpected loss 198.Expand the word "CDR" in context of Basel.
192.Expand the word VaR a) Commission at Default Rate
a) Value at Risk b) Cumulative Default Rate
b) Video Assistant Referee c) Corporate Debt Restructure
c) Value added Re-seller d) None of the above
d) Value at Rate e) All of the above
e) None of the above 199.Who is publishing Cumulative Default
193.Which of the following equation are correct Rate(CDR)?
for Expected Loss(EL)? a) External Credit Rating Agency
a) EL= PD X EAD X LGD b) BIS
b) EL= PD + EAD + LGD c) RBI
c) EL= PD X EAD + LGD d) IMF
d) EL= PD + EAD X LGD e) None of the above
e) None of the above 200.What is the long run reference "Cumulative
194.Find out the Expected Loss, if Probability of Default Rate(CDR)" for AAA rated customer as per
Default is 3%, LGD is 50% and Exposure at Default Basel Recommendation?
is Rs. 100 Lacs a) 0.10%
a) Rs. 1.50 Lacs b) 0.20%
b) Rs. 15 Lacs c) 0.30%
c) Rs. 100 lacs d) 0.40%
d) Rs. 10 Lacs e) None of the above
e) None of the above 201.Loss Given Default is generally shown as
195.What a bank should do when Expected Loss percentage of…………….
exceed provision? a) Probability of Default(PD)
a) Difference should be deducted from Tier 2 b) Exposure at Default
Capital c) Cumulative Default Rate

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d) Maturity Portfolio(RRP) as per BASEL III. There is nil amount
e) None of the above of undrawn limit, credit balance and provision.
202.Under the F-IRB approach, bank may use LGD Please find out the capital requirement for above
estimation of whom? loan @ 9%?
a) Own Estimation a) Rs. 28.35 Lacs
b) SBI Estimation b) Rs. 45.00 Lacs
c) Credit Rating Estimation c) Rs. 33.75 Lacs
d) RBI d) Rs. 37.80 Lacs
e) None of the above e) NOA
203.Basel III norms have been implemented in a 208.Your branch has sanctioned a term loan of Rs.
phased manner in India W.e.f. ………………………. 200 Lacs, cash credit limit of Rs. 200 lacs and LC
a) 01.01.2013 Limit of Rs. 100 lacs to a MSE borrower. There is a
b) 01.04.2013 collateral security in the form of Bank's Term
c) 01.01.2014 Deposit value of Rs. 300 lacs available and the
d) 01.04.2014 exposure is classified under Regulated Retail
e) None of the above Portfolio(RRP) as per BASEL III. There is nil amount
204.What is the Risk Weight assigned as per Basel of undrawn limit, credit balance and provision.
III norms for Commercial Real Estate-Residential Please find out the capital requirement for above
Housing? loan @ 9%?
a) 50% a) Rs. 8.10 Lacs
b) 75% b) Rs. 28.35 Lacs
c) 100% c) Rs. 18 Lacs
d) 125% d) Rs. 13.50 Lacs
e) 150% e) NOA
205.Which of the following are incorrect? 209.Your branch has sanctioned a housing loan of
a) Credit Risk------Internal Rating Based Rs. 25 lacs on 01.04.2018 and the project cost of a
Approach(Foundation) house is Rs. 40 Lacs. Calculate the capital
b) Market Risk-----Basic Indicator Approach requirement for above loan @ 9%.
c) Operational Risk---Advanced Measurement a) Rs. 78750.00
Approach b) Rs. 1,12,500.00
d) Operational Risk--- The Standardised c) Rs. 1,68,750.00
Approach(TSA) d) Rs. 2,25,000.00
e) Market Risk---Standardised Duration Approach e) NOA
206.What is the Risk Weight assigned for Credit 210.Which of the following statement about risk
Card exposure under Standardised approach for is not correct?
computation of capital for Credit Risk under Basel- a) Risk is omni-present
III as per RBI? b) Risk can't be eliminated
a) 0% c) Risk can be mitigated
b) 20% d) Risk can be eliminated
c) 75% e) NOA
d) 100% 211.Expand the word "CRAR"
e) 125% a) Capital to Risk Weighted Asset Ratio
207.Your branch has sanctioned a term loan of Rs. b) Credit to Risk weighted Asset Ratio
200 Lacs, cash credit limit of Rs. 200 lacs and LC c) Credit to Asset Ratio
Limit of Rs. 100 lacs to a MSE borrower. There is a d) Credit Risk and Asset Ratio
collateral security in the form of residential flat e) NOA
with value of Rs. 300 lacs available and the
exposure is classified under Regulated Retail

107
212.How many tenors are there in MCLR? 218.Which of the following can't be a factor for
a) 5 operational risk?
b) 6 a) People
c) 4 b) Process
d) 7 c) Technology
e) 3 d) System
213.How can we reduce capital requirement for e) None of the above
advances? 219.How do you mitigate the people risk in an
a) By entering correct security details in advances organization?
master a) by proper succession planning
b) By granting low risk weighted advances b) By Job rotation
c) By capturing available guarantee coverage in c) by improving competency
the master d) by insulating key personal risk
d) all the above e) All of the above
e) NOA 220.Which of the following statements are
214.Under Pillar-2 of Basle III, the banks are correct in respect of Operational Risk?
required to have a Board Approved ICAAP and a) Potential Losses are practically Unbounded
assess capital accordingly. ICAAP stands for: b) Risks are not easily controlled in the short term
a) Internal Capital Adequacy Assessment c) Capital need is driven by the risk of infrequent
Procedure but extremely large events
b) Internal Capital Approval Assessment Process d) All of the above
c) Internal Capital Adequacy Assessment Process e) None of the above
d) Internal Capital Assessment Approved Process 221.Which of the following are Operational Risk
e) NOA events as per Basel?
215.Under which recommendation of BCBS, a) Internal Fraud
Operational Risk introduces? b) External Fraud
a) Basel 1 c) Damage to Physical Assets
b) Basel II d) Business Disruption and System Failures
c) Basel 2.5 e) All of the above
d) Basel III 222.Which of the following can be classified as
e) None of the above "Loss Events" under Operational Risk?
216.Operational Risk has been defined by Basel a) Non Submission of Stock Statement
committee on Banking Supervision as the risk of b) Prime and Collateral Security are not Covered
loss resulting from Inadequate or failed Internal under Insurance
Processes, ……and system or from external c) Non registration of Charge of Company with
events? ROC
a) Top Management d) Non obtention of Revival Letter
b) Middle Management e) All of the above
c) People 223.Which of the following "Near Miss Event"
d) Computer under Operational Risk?
e) None of the above a) Losses recovered before the close of the day
217.Which of the following are included under b) Failure attempt for encashment of Demand
Operational Risk? Draft
a) Legal Risk c) Wrong Entry identified and reversed
b) Strategic Risk d) Fraudulent attempt for Cheque Encashment
c) Reputational Risk but failed
d) All of the above e) All of the above
e) None of the above

108
224.How many measure have been suggested for 230.Advanced Measurement Approach for
computation of capital charge for Operational computing capital requirements under Basel-III
Risk? relates to which type of Risk?
a) 3 a) Credit Risk
b) 2 b) Market Risk
c) 1 c) Credit Risk & Market Risk
d) 4 d) Operational Risk & Credit Risk
e) All of the above e) Operational Risk
225.Which of the following are incorrect 231.Which of the following are incorrect?
approach for computation of capital for a) Credit Risk------Internal Rating Based
Operational Risk? Approach(Foundation)
a) Basic Indicator Approach(BIA) b) Market Risk-----Basic Indicator Approach
b) The Standardised Approach(TSA) c) Operational Risk---Advanced Measurement
c) Standardised Duration Method Approach
d) Advanced Measurement Approach d) Operational Risk--- The Standardised
e) None of the above Approach(TSA)
226.Under the Basic Indicator Approach(BIA) for e) Market Risk---Standardised Duration Approach
Capital Computation for operational Risk, Average 232.In which area generally people risk occurred?
Gross Income is taken for how many years? a) Sharing of Password
a) 5 Yrs. b) Non-Implementation of Job Rotation
b) 3 Yrs. c) Ignorance of Rules and Regulation
c) 4 Yrs. d) Non compliance of Guidelines
d) 2 Yrs. e) All of the above
e) None of the above 233.Which of the following can be a Risk Mitigant
227.What is the value of "Alpha" under Basic for Operational Risk?
Indicator Approach for Operational Risk? a) Anti-Virus in all system
a) 5% b) Training to Staff Member
b) 10% c) Insurance of Assets
c) 15% d) All of the above
d) 20% e) None of the above
e) 25% 234.How the operational risk event can be
228.What is the frequency for submission of form monitored?
OR1A? a) by Key Performance Indicator(KPI)
a) Weekly b) by Key Risk Indicator(KRI)
b) Fortnightly c) by Key Control Indicator(KCI)
c) Monthly d) All of the above
d) Bi-monthly e) None of the above
e) Quarterly 235.Why the need for robust operational risk
229.Which of the following form can be used for management arises for the Bank?
reporting of Potential Losses, Near Misses and a) Globalization
Attempted Frauds-Individual b) Growth of Technology
a) OR1A c) Large Volume Service Providers
b) OR2A d) Increased Litigation
c) OR1B e) All of the above
d) OR2B 236.Which of the following are not correct
e) None of the above example of Near Miss Events?
a) Cash Shortage recovered Immediately

109
b) Wrong Credit of amount to the account of 'X' c) Systemic
instead of account 'Y' and reversing the same on d) reputation
next day e) Idiosyncratic
c) Attempted Burglary 243.Which of the following constitute a fraud?
d) Failed Attempt of hacking etc. a) Crossing a cheque presented for clearing
e) NOA b) Forging signature in a cheque
237.What are the sources for unearthing frauds? c) Misappropriation of funds
a) Complaints from customers d) a and c
b) Electronic / print media reports e) b and c
c) Off site monitoring reports 244.Our Bank’s Fraud Risk Management policy
d) Audit / inspection reports aims at creating an addressing occurrence of
e) All the above frauds and include …………… of frauds
238.Consolidated statement of frequency of a) Early detection
occurrence of operation risk events are to be b) Prevention
reported in form…….. c) Monitoring
a) ORA1B d) recovery
b) ORA 2B e) All the above
c) ORA 1 A 245.Which of the following are the elements of
d) ORA 2A Market risk?
e) NOA a) Interest Rate Risk
239.ORA 2A return is to be submitted on a ……….. b) Equity Investment
basis. c) Trading Book
a) monthly d) Foreign Exchange
b) quarterly e) All of the above
c) half yearly 246.Which of the following are key drivers for
d) yearly Market Risk?
e) NOA a) Interest Rate
240.Which of the following is a risk management b) Equity Price
tool? c) Credit Spread
a) Sending letter of thanks to newly opened d) Foreign Exchange
account holder e) All of the above
b) Debit cards to be delivered on proper 247.Which of the following best describes the
identification characteristics of Market Risk and hence of its
c) Monitoring transaction to prevent fraud importance?
d) all the above a) Non-diversifiable
e) NOA b) Often Magnifies due to Correlation effect
241.Which of the following is a cause for c) Often resulted in rapid erosion in value of
operation risk? assets
a) People with inadequate knowledge d) Potential to create both solvency and liquidity
b) Absence of external rating risks
c) Refusal to grant interest concession e) All of the above
d) Delay in sanction of credit limits 248.Which of the following exposure does not
e) All the above attract capital charge for market risk?
242.A negative report in the electronic and print a) Securities Included in HFT Category
media about the functioning of a branch is b) Securities Included in AFS Category
…………….. risk c) Forward Contract for hedging
a) Operation d) Credit Exposure to a counterparty in INR
b) Credit e) All of the above

110
249.For which of the following securities, short 256.Which of the following is a measure of risk?
position is allowed in India? a) Duration
a) Derivatives b) Standard deviation
b) Central Government Securities c) Beta
c) Equity d) all the above
d) 1 & 2 e) NOA
e) All of the above 257.Certificate of Deposit is a………….
250.What does mean by "Vertical Disallowance"? a) Promissory Note
a) To Capture Basis Risk b) Usance Promissory Note
b) To Capture Interest Rate Risk c) Demand Promissory Note
c) To Capture Credit Default d) Both 2 & 3
d) Both 1 & 2 e) NOA
e) All of the above 258.What is the Min. amount of Certificate of
251.What does mean by " Horizontal Deposit?
Disallowance"? a) Rs. 5 Lakh
a) To Capture Basis Risk b) Rs. 3 Lakh
b) Imperfect Correlation of Interest Rate along the c) Rs. 2 Lakh
Yield Curve d) Rs. 1 Lakh
c) To Capture Credit Default e) NOA
d) Both 1 & 3 259.What is the Min. and Max. maturity of a CD
e) All of the above being issued by the Bank?
252.Which of the following are not a source of a) Min. 7 days, Max. 3 Years
Interest Rate Risk? b) Min. 1 Year, Max. 3 Years
a) Maturity Mismatch c) Min. 7 days, Max. 1 Year
b) Basis Risk d) Min. 7 days, Max. 2 Years
c) Yield Curve Risk e) NOA
d) Optionality 260.Who among the following can't invest in
e) All of the above Certificate of Deposit?
253.How many approaches are prescribed under a) NRI on Repatriable Basis
Basel III to compute Market Risk? b) NRI on Non-Repatriable Basis
a) 2 c) Individuals
b) 3 d) Companies
c) 4 e) Corporations
d) 5 261.Commercial Paper in India was introduced in
e) None of the above which year…..
254.Which of the following are a derivative a) 1980
product? b) 1987
a) Option c) 1989
b) Future d) 1982
c) Swap e) 1990
d) Forward 262.What should be the min. TNW of the
e) All of the above company as per latest balance sheet for issuance
255.Value at Risk (VaR) is based on ……….. of CP?
a) Risk modelling theory a) Rs. 10 Cr
b) Arbitrage pricing theory b) Rs. 8 Cr
c) Returns based analysis c) Rs. 4 Cr
d) Probability theory d) Rs. 3 Cr
e) NOA e) Rs. 5 Cr

111
263.What should be Min. Denomination amount d) 5 Years RTD +1.5%
of Commercial Paper? e) NOA
a) Rs. 1 Lakh 270.What does "STRIPS" Stands for….
b) Rs. 2 Lakh a) Separate Trading of Registered Interest &
c) Rs. 4 Lakh Principal Securities
d) Rs. 5 Lakh b) Standard Trading of Registered Interest &
e) Rs. 10 Lakh Principal Securities
264.What is the Min. and Max. maturity of a CP c) Selling and Trading of Registered Interest &
being issued by the Bank? Principal Securities
a) Min. 7 days, Max. 3 Years d) Separate and Trading of Registered Interest &
b) Min. 1 Year, Max. 3 Years Principal Securities
c) Min. 7 days, Max. 1 Year e) NOA
d) Min. 7 days, Max. 2 Years 271.An Investment portfolio of the Banks can be
e) NOA classified in how many categories?
265.What should be the Min. Rating of a company a) 3
for issuance of CP as prescribed by SEBI? b) 4
a) A1 c) 5
b) A2 d) 6
c) A3 e) 7
d) BBB 272.Upto what percentage of an Investment, a
e) BB bank can keep under HTM category?
266.What should be Min. Denomination amount a) 10%
of Non Convertible Debenture? b) 15%
a) Rs. 1 Lakh c) 20%
b) Rs. 2 Lakh d) 25%
c) Rs. 4 Lakh e) 30%
d) Rs. 5 Lakh 273.Under which section, RBI prescribes CRR for
e) Rs. 10 Lakh Scheduled Commercial Bank….
267.What should be the Min. Rating of a company a) Sec.42(1) of RBI Act,1934
for issuance of Non Convertible Debenture as b) Sec. 42(1) of BR Act
prescribed by SEBI? c) Sec 24 of RBI Act,1934
a) A1 d) Sec. 24 of BR Act
b) A2 e) NOA
c) A3 274.RBI has recently given some incentives to the
d) BBB Bank for maintenance of CRR under which Bank
e) BB can deduct the incremental credit given under
268.What is the TPM rate for "Volatile Portion of certain categories for maintenance of CRR. Which
CASA"? of the following are not the eligible category?
a) 91 day RTD+0.50% a) Automobile
b) 5 Years RTD+0.50% b) Residential Housing
c) 91 Days RTD +1% c) Commercial Real Estate
d) 5 Years RTD +1% d) Loans to MSME
e) NOA e) All
269.What is the TPM rate for "Core Portion of 275.Repo is defined under which Act?
CASA"? a) Under Sec 45U© of RBI Act
a) 91 day RTD+0.50% b) Under Sec 45X© of RBI Act
b) 5 Years RTD+0.50% c) Under Sec 45T© of RBI Act
c) 91 Days RTD +1% d) Under Sec 45V© of RBI Act

112
e) NOA b) 5.00%
276.Reverse Repo is defined under which Act? c) 3.00%
a) Under Sec 45U(d) of RBI Act d) 6.00%
b) Under Sec 45X(d) of RBI Act e) NOA
c) Under Sec 45T(d) of RBI Act 281.What is the present Reverse Repo Rate?
d) Under Sec 45V(d) of RBI Act a) 5.35%
e) NOA b) 4.35%
277.Repo can be undertaken for a min. period of c) 3.35%
………….. d) 2.35%
a) 7 days e) NOA
b) 14 days 282.What is the Present Marginal Standing Facility
c) 1 day Rate?
d) 15 days a) 4.25%
e) NOA b) 5.25%
278.Repo can be undertaken for a max. period of c) 3.25%
………….. d) 6.25%
a) 1 Year e) NOA
b) 2 Year 283.What is the present CRR?
c) 3 Year a) 3.00%
d) 4 Year b) 4.00%
e) NOA c) 2.00%
279.What is the present Bank Rate? d) 4.00%
a) 3.25% e) NOA
b) 4.25% 284.What is the present SLR?
c) 5.25% a) 16.00%
d) 6.25% b) 15.00%
e) NOA c) 18.00%
280.What is the present Repo Rate? d) 17.00%
a) 4.00% e) NOA

Answers:

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

113
Q A Q A Q A Q A Q A Q A Q A Q A Q A Q A

101 B 111 C 121 C 131 C 141 B 151 C 161 E 171 C 181 C 191 A

102 A 112 D 122 D 132 A 142 C 152 D 162 C 172 D 182 E 192 A

103 C 113 E 123 C 133 E 143 C 153 B 163 A 173 C 183 B 193 A

104 C 114 C 124 B 134 B 144 A 154 C 164 A 174 E 184 A 194 A

105 D 115 C 125 E 135 A 145 A 155 B 165 A 175 A 185 D 195 B

106 B 116 A 126 D 136 B 146 A 156 A 166 C 176 E 186 A 196 D

107 D 117 C 127 D 137 D 147 B 157 C 167 A 177 B 187 E 197 A

108 C 118 B 128 E 138 A 148 D 158 B 168 A 178 A 188 D 198 B

109 C 119 B 129 A 139 E 149 B 159 B 169 C 179 A 189 B 199 A

110 B 120 C 130 B 140 D 150 B 160 B 170 B 180 A 190 D 200 A

Q A Q A Q A Q A Q A Q A Q A Q A Q A

201 B 211 A 221 E 231 B 241 A 251 B 261 E 271 A 281 C

202 D 212 A 222 E 232 E 242 D 252 E 262 C 272 D 282 A

203 B 213 D 223 E 233 D 243 E 253 B 263 D 273 A 283 B

204 B 214 C 224 A 234 D 244 E 254 E 264 C 274 C 284 C

205 B 215 A 225 C 235 E 245 E 255 D 265 C 275 A

206 E 216 C 226 B 236 B 246 E 256 D 266 D 276 A

207 A 217 A 227 C 237 E 247 E 257 B 267 B 277 C

208 A 218 E 228 C 238 C 248 D 258 A 268 A 278 A

209 A 219 E 229 D 239 B 249 D 259 C 269 D 279 B

210 D 220 D 230 E 240 D 250 A 260 A 270 A 280 A

114
 Module H – Para Banking
Para Banking and Fee based Income

1. Expand lCLS a) April 1, 2022

a) Indian Credit Link Scheme b) October 1, 2022
b) Inter City Loan System c) January 1, 2023
c) International Cash Letter Services d) April 1, 2023
d) None of these e) None of these
2. The presenting banks are required to 6. Time line of settlement of claims in case of
preserve the physical cheques in their lockers subject to the production of proof of
custody securely for a period of ------ years as death of the depositor and suitable
required under CTS. Father identification of the claimant(s) with
a) 2 years reference to nomination, to the bank's
b) 5 years satisfaction
c) 7 years a) not exceeding 15 days from the date of
d) 10 years receipt-of the claim
e) 12 years b) not exceeding 30 days from the date of
3. Compensation to be paid to customer in case receipt-of the claim
of delay beyond 14 days in case of cheque c) not exceeding two weeks from the date
collection of receipt-of the claim
a) Interest at Saving Bank rate d) not exceeding one month from the date
b) Interest at the rate applicable to term of receipt-of the claim
deposit or Savings bank rate whichever is e) none of these
higher for the respective delay period 7. Maximum entry age for Pradhan Mantri
c) interest will be paid at the, rate of 2 % Jeevan Jyoti Bima Yojana (PMJJBY) is
above the corresponding Term Deposit a) 45 years
Rate b) 50 years
d) interest will be paid at bank rate c) 55 years
e) none of these d) 60 years
4. The minimum value that can be loaded in the e) 65 years
IOB PREPAID CARD is Rs. -------- and the 8. Who is our partner in Arogya Plus insurance
maximum amount of balance that can be product?
outstanding at any point of time is Rs. -------- a) M/s Niva Bupa Health Insurance Co
----- b) LIC of India
a) 500 and 50,000 c) SBI General Insurance Co
b) 1,000 and 50,000 d) Universal Sompo GICL
c) 1,000 and 100,000 e) HDFC ERGO General Insurance Co
d) 100 and 100,000 9. Maximum sum insured in Reassure scheme
e) None of these with M/s Niva Bupa Health Insurance Co
5. The Bank has adopted the model locker a) 25 Lacs
agreement framed by IBA and Branches shall b) 50 Lacs
renew their locker agreements with existing c) 15 Lacs
locker customers by d) 100 Lacs

115
 e) None of these 34. Any time after the expiry of how many years
10. Bharat Laghu Udyam Suraksha Insurance from the end of the year in which the PPF
product - the total ‘value at risk’ across all account was opened, the account holder is
insurable asset classes at any one location at allowed to withdraw 50% of the previous
the commencement of the insurance cover. year end balance?
a) Exceeds ₹ 5 Crore but does not exceed ₹ a) 10
50 Crore b) 5
b) Exceeds ₹ 1 Crore but does not exceed ₹ c) 15
5 Crore d) 4
c) Exceeds ₹ 5 Crore but does not exceed ₹ e) 12
100 Crore 35. Any time after the expiry of how many years
d) Exceeds ₹ 1 Crore but does not exceed ₹ from the end of the year in which the account
20 Crore was opened, the PPF account holder is
e) none of these allowed to closure his account to withdraw of
31. What is the maximum limit of PPF deposit in the entire balance along with due interest up
a year inclusive of the deposits made in his to the last day of the month preceding the
own account and in the account opened on month in which the account is closed?
behalf of the minor? a) 20
a) 1.50 lakhs b) 5
b) lakhs c) 15
c) 75 thousand d) 16
d) 3.00 lakhs e) 12
e) none of the above 36. which of the following option is wrong for
32. The PPF account shall be opened with a premature closer of PPF accounts?
minimum initial deposit of _____ rupees and a) treatment of life-threatening disease of
thereafter deposit of any sum in multiples of the account holder, his spouse or
_____ rupees shall be made? dependent children or parents, on
a) 250, 50 production of supporting documents and
b) 100, 100 medical reports confirming such disease
c) 500, 50 from treating medical authority.
d) 100, 50 b) For purchasing own house in the name of
e) 500, 100 account holder
33. In PPF account interest is credited _______ c) on change in residency status of the
End and present interest rate (From Jan 1, account holder on production of copy of
2021) is ____per annum shall be eligible for Passport and visa or Income tax return
a calendar month on the lowest balance at d) higher education of the account holder,
the credit of an account between the close of or dependent children on production of
the fifth day and the end of the month? documents and fee bills in confirmation
a) every month, 8.00 % of admission in a recognized institute of
b) Quarterly,7.40 % higher education in India or abroad;
c) Every month, 7.90 % e) none of the above
d) Every Year, 7.10 % 37. Sukanya Samridhi Account is opened
e) Quarterly, 7.90% maximum of ____ girl children who has not

116
 attained age of ___ years as on date of on non judicial stamp paper attested by
opening by one of the guardian? the notary supported with proof of age
a) 1, 10 confirming that the applicant will not be
b) 2,11 less than eighteen years of age on the
c) All girl children’s, 10 date of marriage
d) 2, 18 d) on completion of a period of twenty-one
e) 2, 10 years from the date of its opening the
38. The Sukanya Samridhi Account shall be account can be closed
opened with a minimum initial deposit of e) None of the above
_____ rupees and thereafter deposit of any 41. Lockers can't be rent to which of the
sum in multiples of _____ rupees shall be following persons
made? a) Trusts, Hindu Undivided Family concerns
a) 250, 50 b) Societies, Clubs and Associations
b) 1000, 100 c) Proprietary concerns
c) 500, 50 d) Firms & Limited companies
d) 250, 100 e) none of the above
e) 500, 100 42. Is deposit for safe deposit lockers
39. In Sukanya Samridhi Account interest is compulsory?
credited _______ End and present interest a) Yes, minimum deposit amount should be
rate (From Jan 1, 2021) is ____per annum collected as per the locker Size
shall be eligible for a calendar month on the b) Not compulsory. but alternatively, 3
lowest balance at the credit of an account Years’ Annual rent may be collected in
between the close of the fifth day and the advance
end of the month? c) Not compulsory. but alternatively, 2
a) every month, 8.00 % Years’ Annual rent may be collected in
b) Quarterly, 8.00 % advance
c) Every month, 7.90 % d) Asper the branch manager discretion
d) Every Year, 7.60 % minimum deposit amount can be
e) Quarterly, 8.40 % collected
40. which of the following reason is wrong with e) none of the above
respect to Sukanya Samridhi account? 43. How many free locker operations allowed to
a) for the purpose of education of the the customer?
account holder, withdrawal of up to a a) 12 free operations in a year
maximum of fifty per cent of the amount b) 4 operations in a month
in the account at the end of the financial c) 2 operations in a month
year preceding the year of application for d) 48 free operations in a year
withdrawal shall be allowed e) no charges for locker operations
b) on completion of twenty-one years of 44. For health care Plus policy what is the
the girl child the account can be closed discount available if policy is taken for 3
c) the account can be closed if the account years?
holder on an application makes a request a) Policy can be availed for one year only
for such closure for the reason of b) 20 % of the policy amount
intended marriage of the account holder c) 10 % of the policy amount
on furnishing of a declaration duly signed d) 5 % of the policy amount

117
 e) No discount is available a) 5%
45. For health care Plus policy in Option Plan B b) 10%
which of the following person can't be c) 15%
covered? d) 20%
a) Proposer e) co-payment not required
b) Spouse 48. For health care Plus Policy what is the
c) Maximum Two dependent children Maximum sum insured amount?
d) Maximum 4 dependent Parents a) Rs. 5 lakhs
e) none of the above b) Rs. 15 lakhs
46. For health care Plus policy what is the waiting c) Rs. 10 lakhs
period to cover pre-existing diseases? d) Rs. 25 lakhs
a) after 48 months of continuous coverage e) No maximum amount
b) After 36 claim free months 49. What is the Maximum Sum insured option
c) after 36 months of continuous coverage available in loan secure insurance policy?
d) After 4 claim free years a) Rs. 50 Lakhs
e) after 24 months of continuous coverage b) Rs. 1 core
47. What is the co-payment being applicable on c) Rs. 10 Crores
each and every claim of insured above 55 d) Rs. 3 Crores
years of age for Health Care Plus policy? e) Rs. 5 crores

Answer:

Q A Q A Q A Q A Q A Q A
1 C 6 A 11 A 16 E 21 E 26 A
2 D 7 B 12 C 17 A 22 B 27 C
3 B 8 C 13 D 18 A 23 A 28 B
4 A 9 D 14 B 19 D 24 D 29 E
5 D 10 A 15 C 20 E 25 D

118
 Module I – Digital Banking
Digital Banking

1. Classic Card issued with the limit slabs of which form?

a. Rs10,000/- a. Classic Card
b. b. Rs25,000/- b. Platinum Card
c. c. Rs 50,000/- c. Signature Card
d. d. All of these d. All of these
e. e. None of these e. None of these
2. Gold Credit card issued with the limits 8. The maximum number of currency
between range of notes our Bank’s ATM can dispense
a. Rs 10,000/- to Rs 1,00,000/- through the dispensing slit _____?
b. Rs 50,000/- to Rs 5,00,000/- a. 20
c. Rs 60,000/- to Rs 5,00,000/- b. 40
d. Rs 1,00,000/- to Rs 5,00,000/- c. 60
e. Rs 1,00,000/- to Rs 10,00,000/- d. 80
3. How many add on cards can be issued e. 100
to a credit card? 9. In FAST CASH option, the facility to
a. 1 withdraw cash, in pre-defined slabs
b. 2 from
c. 3 a. 500 to 10000
d. 4 b. 500 to 20000
e. 5 c. 500 to 30000
4. Credit card normally valid for _____ d. 500 to 40000
years e. 500 to 50000
a. 2 yrs. 10. What is UPI ?
b. 3 yrs. a. Unified Payment intermediate
c. 5 yrs. b. Unified Payment Interface
d. 8 yrs. c. Unique Payment Interface
e. 9 yrs. d. Unique Payment Interface
5. How much credit card limit can be given e. Unified Payment Intermediate
to a customer whose monthly salary is 11. What is incorrect regarding “White Level
Rs 2lakhs and above? ATMs “?
a. 2 lakhs a. ATMs set up, owned and operated
b. 5 lakhs by Non-bank entities.
c. 8 lakhs b. This requires authorization from RBI
d. 10 lakhs under the Payment and Settlement
e. 12 lakhs Systems (PSS) Act 2007.
6. In case of GOLD credit card what is the c. These Non-bank entities must have
coverage to spouse for personal net worth of at least Rs 150 crore as
accidental death due to Rail Accident? per the last audited balance sheet.
a. 1 lakhs d. These entities provide the banking
b. 2 lakhs services to the customers of banks
c. 3 lakhs in India, based on the cards
d. 5 lakhs (debit/credit/prepaid) issued by
e. 10 lakhs banks.
7. Master debit card can be issued in e. None of these.

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12. Who is the insurance partner in case of 1. Daily Cash transaction limit in case
RuPay PMJDY card as far as personal of VISA Classic Card is Rs 20,000/-
accidental insurance is concern? 2. POS machine transaction restricted
a. SBI Life General Insurance Company to Rs 75,000/- in case of VISA GOLD
b. New India Assurance Company CARD.
c. Tata AIG General Insurance 3. E-Commerce transaction restricted
Company to Rs 2,50,000/- in case of visa
d. Universal Sompo General Insurance Platinum Card.
Company 4. POS machine transaction restricted
e. HDFC ERGO General Insurance to Rs 2,70,000/- in case of VISA
Company GOLD CARD.
13. Who is the insurance partner in case of 5. Issuance charge in case of visa
RuPay Premium card as far as personal connect card is Rs 350/-.
accidental insurance is concern? a. 1&3
a. SBI Life General Insurance Company b. 3&5
b. New India Assurance Company c. 2&4
c. Tata AIG General Insurance d. 1&2
Company e. 2&5
d. Universal Sampo General Insurance 18. Fraud insurance up to 1lakh is available
Company in of which type of card?
e. HDFC ERGO General Insurance a. Visa Classic
Company b. Visa Gold
14. What is the full form of NCMC card? c. Visa Platinum
a. National Common Mobility Card d. Visa Signature
b. National Careful Mobility Card e. Visa Connect
c. National Common Mobile Card 19. What is the FASTag sticker cost in our
d. Nano Common Mobility Card Bank?
e. Nano Common Mobile Card a. Rs 50 + GST
15. Under Contactless feature of NCMC b. Rs 100+ GST
RuPay card, up to what amount a c. Rs 150 + GST
customer can do contactless d. Rs 200 + GST
transaction? e. Rs 250 + GST
a. 2000 20. FASTag was made mandatory at every
b. 3000 toll plaza in the country from which
c. 4000 date?
d. 5000 a. 01.01.2021
e. 6000 b. 01.02.2021
16. What is incorrect regarding NCMC c. 15.02.2021
RuPay Platinum Card? d. 15.03.2021
a. ATM cash transaction per day e. 31.03.2021
restricted to Rs 30,000/- 21. NEFT works of the principle of which of
b. Transaction in PoS machine the following?
restricted to Rs 50,000/- a) Gross batch settlement
c. E-Commerce transaction restricted b) Deferred net settlement
to Rs 75,000/- c) Priority net settlement
d. All of These d) Domain net settlement
e. None of these e) None of these.
17. Which of the statement is incorrect?

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22. ASBA is a mechanism for subscribing to merchants are the present target groups
applications in initial public offerings under IOB pay?
(IPO/s). ASBA stands for a) Government Services
a) Application supported by blocked b) Educational Institutions
amount c) Charitable Institutions
b) Application submitted with blocked d) Commercial Services
amount e) All of these.
c) Acquired shares by blocked amount 28. What is the expansion of BHIM?
d) Application supported by balance
a) Bharat Interface for money
amount
b) Bharat Initiative for money
e) Application supported by blocked
c) Bharat Intermediate for
account
money
23. Name the term given to banks who are
d) Bharat Immediate for money
capable of providing ASBA services to its
e) None of these.
customers
29. To use smart cards/debit cards/credit
a) Stock certified banking entity
cards for the purchase of an item or for
b) Equity certified banking company
payment of a service at a merchant’s
c) Self-certified syndicate bank
store/the card has to be swiped in a
d) ASBA certified bank
terminal known as
e) None of these.
a) Point of sale terminal
24. Out of the following by which mode/s
b) Real time terminal
an applicant can apply for an IPO
c) Shopping terminal
through ASBA?
d) All of the above
a) Physical ASBA
e) None of these
b) ASBA through Internet Banking (e-
30. What is the maximum daily limit for IOB
ASBA)
BHIM UPI app transaction?
c) ASBA through UPI
a) Rs 10000/-
d) A & B
b) Rs 15000
e) All of these
c) Rs 20000/-
25. Out of the following options which one
d) Rs 100000/-
provides online transaction routing,
e) Rs 50000/-
processing and settlement service to
member participating in UPI? 31. Which of the following Categories of
a) Commercial banks billers is not included in BBPS system?
b) TRAP a) Electricity
c) NPCI b) Water / Municipality
d) RBI c) Gas Supply
e) SEBI d) Direct to Home (DTH)
26. …………….. is an integrated online e) Prepaid Recharges
payment system which offers fee 32. After registration of BHIM IOB UPI, what
payments, merchant payments,
is the maximum transaction limit for first
donations for charitable institutions etc.
a) IOB BHIM UPI 24 hrs.
b) IOB pay a) 2000
c) BBPS b) 5000
d) IOB BHIM Aadhaar c) 10000
e) None of these d) 20000
27. Which of the following category of e) 25000

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33. Which one of the following best e. (i) TRUE, (ii) TRUE, (iii) TRUE
describes the term "Merchant (iv) TRUE
Discount Rate" sometimes seen in 35. Customers can register
news? themselves for mobile banking
a) The incentive given by a bank to a services through which of the
merchant for accepting payments
following ways
through debit cards pertaining to
that bank. I. Customers has to fill the
b) The amount paid back by banks to application & submit to
their customers when they use branch.
debit cards for financial II. Through Internet banking
transactions for purchasing goods login
or services. III. Through ATM
c) The charge to a merchant by a Identify the correct option
bank for accepting payments from a) Only A
his customers through the bank's b) Both A & B
debit cards. c) Both A & C
d) The incentive is given by the d) Both B & C
Government to merchants for e) All are correct
promoting digital payments by 36. What is the amount paid to
their customers through Point of Business Correspondents (BC’s)
Sale (PoS) machines and debit for their service for on boarding
cards. merchants under IOB BHIM
e) All of these Aadhaar?
34. Read the following statements a. Rs 100/-
and choose the CORRECT option. b. Rs 200/-
I. NEFT is an electronic funds c. Rs 300/-
transfer system that operates d. Rs 400/-
on a Deferred Net Settlement e. Rs 500/-
basis that settles transactions 37. Which menu is recently
in batches introduced in CBS for making
II. RTGS transactions are entries for bid applications for
processed continuously ASBA?
throughout the banking a) HIPOBAP
business hours
b) HLAPBAP
III. RTGS system is primarily
c) HIPABAP
meant for large value
transactions d)HLADGN
IV. All the bank branches in India e) None of these.
are RTGS enabled 38. What is the compensation to the
a. (i) TRUE, (ii) FALSE, (iii) FALSE, beneficiary customer paid in case
(iv) TRUE of any delay in providing RTGS
b. (i) TRUE, (ii) FALSE, (iii) TRUE, credit to the beneficiaries’
(iv) TRUE account?
c. (i) TRUE, (ii) TRUE, (iii) FALSE, a) Per day Repo Rate Plus 1 %
(iv) TRUE b) Per day Bank Rate Plus 2 %
d. (i) TRUE, (ii) TRUE, (iii) TRUE, c) Repo Rate Plus 2 % Per day
(iv) FALSE d) Per day Bank Rate Plus 1 %

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 e) No penalty for the first 2 days customers?
and then Bank rate plus 2% a) Unified Payment Interface
39. What is the transaction amount b) Bharat Bill Payment System
routed through NEFT /RTGS c) Intermediate Payment Service
/Clearing along with details to be d) National Common Mobility
reported by the branch to Money Card
Market Desk at Treasury over e) None of these
telephone? 43. Bank credential sharing is not
a) Rs. 1 crore & above required in UPI due to the
b) Rs. 2 crore & above presence of which of the
c) Rs. 5 Crore & above following?
d) Rs. 10 crore & above a) IMPS
b) VPA
e) None of these.
c) IFSC
40. What is the maximum time limit
d) 2FA
for reversal in case of UPI –
e) None of these
Account debited but the
44. For BHIM IOB UPI, which of the
beneficiary account is not credited
following is/are correct in relation
(transfer of funds) without any
to eligible accounts.
penalty?
a) Current accounts with
a) Auto reversal by beneficiary
individual category and
bank on T+1 days
Proprietorship concern are
b) Auto reversal by beneficiary
bank on T+2 days allowed for UPI Registration
c) Auto reversal by beneficiary through retail CIF.
bank on T+3 days b) If same mobile number is
d) Auto reversal by beneficiary available in multiple retail
bank on T+4 days customer ids, then
e) None of these registration is not allowed.
41. What is the maximum time limit c) Only Former account holder is
for reversal in case of Point of Sale eligible for UPI registration in
(POS) (Card Present) including case of F or S operated
Cash at POS Account debited but
accounts.
confirmation not received at
merchant location i.e., charge-slip d) Only Karta customer id to be
not generated without any allowed for HUF accounts.
penalty? e) All are correct.
a) Auto reversal within T+1 days 45. What amount is fixed for Business
b) Auto reversal within T+2 days Correspondents for their services
c) Auto reversal within T+3 days for onboarding merchants for
d) Auto reversal within T+4days BHIM Aadhaar IOB?
e) Auto reversal within T+5 days
a) Rs 50/- per Merchant Onboarding.
42. Which of the following is an b) Rs 100/- per Merchant Onboarding.
integrated bill payment system c) Rs 150/- per Merchant Onboarding.
offering interoperable and d) Rs 200/- per Merchant Onboarding.
accessible bill payment service to e) Rs 250/- per Merchant Onboarding.

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 Answer Keys:

Q No. Ans Q No. Ans Q No. Ans Q No. Ans Q No. Ans
1 D 11 C 21 B 31 E 41 E
2 C 12 B 22 A 32 B 42 B
3 D 13 C 23 C 33 C 43 B
4 B 14 A 24 E 34 D 44 E
5 B 15 D 25 C 35 E 45 B
6 A 16 E 26 B 36 A
7 E 17 B 27 E 37 A
8 B 18 C 28 A 38 C
9 E 19 B 29 A 39 C
10 B 20 C 30 D 40 A

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 BC/BF
1. What is the minimum qualification of a d. Maximum ceiling of Rs 3000/- has to be
person to get appointment as individual BC? paid per month.
a. 8th pass e. Commission @ 0.50% on the amount
b. 8th fail recovered above the overdue portion in
c. 10th pass JL/DL/Loan against NSC KVP of accounts
d. 10th fail only.
e. Inter pass 5. Who can’t be a BC?
2. Which of the statement is correct? a. Individuals
a) Commission for opening Savings b. NGOs
account (zero balance) is Rs 10/- c. Post offices
Commission for APY is Rs 20 d. LIC of India
Commission for PMJJBY is Rs 10 e. DaK Sevak
Commission for PMSBY is Rs 2 6. Which of the statement is incorrect?
Maximum commission in case of 1. Cheque book should be given for CC-smart
mobilization of Fixed deposit per month account.
is Rs 2000. 2. Branches to take security deposit of Rs
3. Which of the statement is incorrect? 50,000/- for giving the card limit of Rs
1. Fixed fee of Rs 2000/- is to BCs who 50,000/-
carry out 150 transactions during 3. Branches to take security deposit of Rs
month. 50,000/- for giving the card limit of Rs
2. Fixed commission of Rs. 1500/- per 1,00,000/-
month for undertaking door step 4. Every existing BC have to complete the
banking. certified course for BC/BF by IIBF
3. On canvassing 100 fresh jewel loan per 31.03.2022.
month BC will get a commission of Rs a. 1&2
2500. b. 1&3
4. 0.5% commission will be given to the BC c. 2&4
for recovery of standard loan subject to d. 3&4
maximum Rs 3000 per month. e. 1&4
5. The maximum transaction per account 7. If one BC is mobilizing 75 to 99 fresh Jewel
per card per day is pegged atRs.10000 Loan in a month then he will get
a) 1&5 remuneration of ______
2&5 a. Rs 1000/-
2&4 b. Rs1500/-
3&4 c. Rs 2000/-
3&5 d. Rs 2500/-
4. Which of the statement is correct in case of e. Rs 3000/-
SMA 2 account? 8. Which one is correct?
a. Commission @3.00% on recovery of 1. Fee for enrolment under IOB Suraksha is
overdue/ critical portion only. Rs 5/-.
b. Commission @ 0.50% on the amount 2. Fee for enrolment under PMSBY is Rs 2/-.
recovered above the overdue portion in 3. Fee for enrolment under PMJJBY is Rs 30/-
LAA types of accounts only. 4. Fee for enrolment under APY is Rs 60/-
c. Commission @ 0.50% on the amount a. 1&2
recovered above the overdue portion in b. 1&3
ODA/CCA types of accounts only. c. 2&3

125
 d. 1&4 a) Rs 250/-
e. 3&4 b) Rs 1500/-
9. What is RSETI? c) Rs 2500/-
a) Rural Self Employment Training Institute. d) Rs 3000/-
b) Regional Self Employment Training e) None of the above
Institute. 13. How much commission BC will get, if AEPS
c) Rural Self Educated Training Institute. transaction & RuPay transaction fee per day
d) Rural Sole Employment Training Institute. (on us) if number of transaction is 251 to
e) Rural Sole Educated Training Institute. 750?
10. The name of the FLCCs approved by our a. Rs 3.00
Board? b. Rs 3.50
a) SHRADHA c. Rs 4.00
b) SRISTHI d. Rs 4.50
c) SNEHA e. Rs 5.00
d) SIDHHI 14. How much commission BC will get if smart
e) STHUTEE card transaction will be more than 751 per
11. What is not the activity of BC? day?
a) Disbursal of small value credit. a. Rs 2.00
b) Collection of Principal & interest on loan. b. Rs 2.50
c) Mobilization of Small value Deposits. c. Rs 3.00
d) Going to Clearing House for Chq d. Rs 3.50
collection. e. Rs 4.00
e) Canvassing Micro Insurance. 15. Till date How many FLCCs are approved by
our Board?
12. An account with book outstanding of Rs a. 9
1,00,000/- under DA3 category was settled b. 14
by BC for an amount Rs 50,000/-. The full c. 23
OTS amount was recovered by BC. How d. 32
much Commission the BC will get? e. 37

Answer keys:

Q No. Ans Q No. Ans Q No. Ans

1 C 6 A 11 D
2 A 7 C 12 B
3 B 8 B 13 B
4 B 9 A 14 C
5 D 10 C 15 C

126
 Module J – Misc.

PSBS-Reforms Agenda-EASE-Enhanced Access And Service Excellence.

1. What is “S” in EASE? c) Affordable

a) Surveillance d) All of the above
b) Service e) None of the above
c) Support 7. What is “A” in clean banking?
d) Server a) Affordable
e) None of the above b) Access
2. How many action points are there in c) Action against defaulters
EASE 3.0? d) Aspire
a) 27 e) None of the above
b) 62
c) 31 8. Which of the theme is proposed under
d) 42 EASE 4.0?
e) None of the above a) 24*7 Banking
3. Which of the following is the theme of b) Focus on North east
EASE 3.0? c) Bad Bank
a) Smart lending for aspiring data d) Raising funds outside the banking
b) Tech enabled ease of banking sector
c) Institutionalizing prudent banking e) All of the above
d) Deepening financial inclusion and 9. Automation of loan processing comes
customer protection under which theme of PSB reform
e) All of the above agenda of EASE?
4. SPGRS will come under which theme of a) Credit off take
EASE Agenda? b) Responsible banking
a) Customer responsiveness c) Customer responsiveness
b) Responsible banking d) Deepening financial inclusion
c) Credit off take e) None of the above
d) Financial Inclusion 10. Efficient management of customer
e) None of the above complaints comes under which theme of
5. Under PSB reform agenda EASE, Door EASE agenda?
Step Banking to be available to which a) Credit off take
type of customers? b) Deepening financial inclusion
a) Senior Citizens of 60 Years and above c) Customer responsiveness
b) Super senior citizens of 80 Years and d) Responsible banking
above e) None of the above
c) Differently abled customers 11. Which of the following is not an action
d) All customers of bank point under deepening financial
e) None of the above inclusion?
6. EASE 4.0 has been launched aiming at a) Services through BC for branchless
institutionalizing clean and ________ banking
banking. b) Providing micro insurance coverage
a) Responsible for social security
b) Smart

127
 c) Aadhaar seeding through OTP on a) EASE 1.0
mobile b) EASE 2.0
d) Ease for customer service c) EASE 4.0
e) None of the above d) EASE 3.0
12. Performance in EASE reform index is e) None of the above
used for evaluation of_______. 18. Banks have been urged with state
a) Whole time director governments to push the “one district,
b) Up to two level below the whole time one export” agenda under which theme
director of EASE 4.0?
c) GM and above a) Leveraging fintech sector
d) All the above b) Export promotion
e) Only a and b c) Raising funds outside the banking
13. What is “R” in SMART Banking? sector
a) Rural d) 24*7 banking
b) Responsive e) None of the above
c) Raising 19. EASE 3.0 is applicable for financial
d) Rapid year_________.
e) None of the above a) 2019-20
14. Which are the key initiatives under EASE b) 2020-21
4.0? c) 2021-22
a) Smart lending d) 2018-19
b) 24*7 banking with resilient e) None of the above
technology 20. There are total ______ no of action
c) Data enabled agricultural financing points under ease reform agenda EASE
d) Collaborating with financial 2.0
ecosystem a) 24
e) All of the above b) 62
c) 31
15. Which agency has been assigned by IBA d) 42
for the job of collecting data from various e) None of the above
sources for ranking of PSBs under EASE? 21. Under EASE reform agenda IOB is having
a) M/S Atyati Pvt. Ltd tie up with which two vendors for door
b) M/S Integra Technology Pvt. ltd step banking?
c) Boston Consulting Group a) M/S Atyati Tech Pvt. Ltd
d) CRISIL b) M/S Integramicrosystem pvt ltd
e) None of the above c) M/S Bijlipay
16. Credit @ click comes under which theme d) 1 and 2 only
under EASE 4.0? e) 2 and 3 only
a) Smart lending
b) 24*7 banking with resilient 22. Under EASE 3.0 digital medium modes
technology are?
c) Data enabled for agricultural a) SMS
financing b) Missed call services
d) Collaborative with financial c) Mobile banking
ecosystem d) Internet banking
e) None of the above e) All of the above
17. Bad bank concept has been proposed in 23. Under EASE reforms for public sector
which EASE reforms? banks what does “C” stands in

128
 CLEAN Banking? a) Smart lending
a) Clean Note b) 24*7 Banking
b) Clean Credit c) Data enabled agricultural financing
c) Clean Premises d) Collaborating with financial
d) Careful employee ecosystem
e) None of the above e) None of the above
24. How many sub action points are there in 28. Risk management comes under which
EASE 3.0? theme in EASE agenda?
a) 27 a) Customer responsiveness
b) 62 b) Responsible banking
c) 38 c) Credit off take
d) 42 d) Financial inclusion
e) None of the above e) None of the above
25. Digitalizing the branch experience for
customers comes under which theme of
EASE 3.0? 29. What is the main agenda of EASE 4.0?
a) Smart lending for aspiring India a) Smart Banking
b) Tech enabled ease of banking b) Clean banking
c) Institutionalizing prudent banking c) Customer centric digital
d) Deepening financial inclusion and transformation
customer protection d) 24* 7 banking
e) None of the above e) None of the above
26. What are the features of universal touch 30. Analytic based credit offers comes
points under EASE agenda? under which theme of EASE 4.0?
a) Common call centre a) 24*7 Banking
b) Common web portal b) Smart lending
c) Common mobile app c) Collaborating with financial
d) 1& 2 ecosystem
e) All the three d) Data enabled agricultural financing
27. Co lending with NBFCs comes under e) None of the above
which theme in EASE 4.0?

Answer Keys:

Q. No Ans Q. No Ans Q. No Ans Q. No Ans Q. No Ans Q. No Ans

1 B 6 B 11 D 16 A 21 D 26 E
2 A 7 C 12 E 17 C 22 E 27 D
3 E 8 E 13 B 18 B 23 B 28 B
4 B 9 A 14 E 19 B 24 C 29 C
5 D 10 C 15 C 20 A 25 B 30 B

129
 Pension Account Maintenance, Agency Commission & Miscellaneous.

1. Life certificate is to be submitted by every e) None of the above

pensioner/family pensioner in which month 7. In case of family pension sanctioned to a
every year? temporary disabled child then disability
a) October certificate has to be submitted by guardian
b) January in every _________ Years interval.
c) November a) 5 Years
d) December b) 1 Year
e) None of the above c) 2 Years
2. What is the rate of agency commission d) 3 Years
payable to banks for pension payments? e) None of the above
a) Rs.40/- per transaction 8. Which committee has recommended for
b) Rs.75/- per transaction wearing of identity cards by Bank employees
c) Rs.9/- per transaction while on duty?
d) Rs.30/- per transaction a) Goiparia Committee
e) None of the above b) Tandon Committee
3. Commuted portion of the pension will be c) Talwar Committee
restored after how many years? d) Ghosh Committee
a) 12 Years
e) None of the above
b) 15 Years
9. Rotation of duties for both the workmen
c) 18 Years
and officer employees as per which
d) 10 Years
committee recommendations?
e) None of the above
4. On attaining which age the pensioner/family a) Talwar Committee
pensioner will be eligible for additional b) Ghosh Committee
quantum of pension? c) Rajan Committee
a) 80 Years d) Tandon Committee
b) 70 Years
c) 65 Years
e) None of the above
10. Employee’s working hours starts 15
d) 75 Years
minutes’ prior business hour is as per
e) None of the above
__________committee recommendations.
5. Agency banks will be liable for penal interest
a) Ghosh Committee
at _____ % in case of wrong claims of
b) Talwar Committee
agency commission settled.
c) Goiparia Committee
a) Bank rate +2%
d) Tandon Committee
b) Bank Rate+1%
e) None of the above
c) Bank Rate+5%
11. Who is responsible for quality of notes of
d) Bank Rate+3%
denominations above Rs.100/-?
e) None of the above
6. Agency Commission claims with respect to a) Cashier Only
GST transactions will be settled at which b) Supervising Official who is joint
regional office of RBI only? custodian of cash
a) Delhi c) Both supervisory official and cashier
b) Nagpur (joint custodians)
c) Mumbai d) Branch Manager Only
d) Bangalore e) None of the above
130
 12. For cash shortage in Vault Balance who is b) September
responsible? c) December
a) Cahier Only d) March
e) None of the above
b) Joint Custodians (Officer and Cashier
18. In Lokadalat pre-litigative cases/ NPA
both)
accounts with outstanding up to ______
c) Officer Only Lacs can be filed?
d) Branch Manager Only a) 20 Lacs
e) None of the above b) 10 Lacs
c) 15 Lacs
13. Special Cadre Assistants in our Bank can d) 30 Lacs
pass cheque/withdrawal slips up e) None of the above
to which amount?
a) Up to Rs.25000/- 19. Which of the following communities are not
b) Up to Rs.35000/- considered as minority communities as per
c) Up to Rs.50000/- Govt of India Notification?
d) Up to Rs.100000/- a) Muslims
e) None of the above b) Sikhs
14. Which types of customers are eligible to get c) Christians
service under DSB d) Hindu
(Door Step Banking)? e) None of the Above
a) Only Senior Citizens 20. Branches headed by _______ and above
b) Only Super senior citizens are permitted to issue high value Drafts
c) Only Female customers (10 Lacs and above) in our Bank.
d) All KYC Compliant individual a) AGM and above
customers b) CM and Above
e) None of the above c) SM and Above
15. What is the service charge per call/service d) DGM and Above
under DSB in all states except? e) None of the Above
Kerala? 21. In CO Inspection (RBIA) how much mark
a) Rs.75/- + GST has been assigned for Business Risk?
b) Rs.100/- + GST a) 600 out of 1000
c) Rs.50/- + GST b) 400 out of 1000
d) No Charges c) 300 out of 1000
e) None of the above d) 500 out of 1000
16. What is the service charge per call/service under e) None of the above
DSB in the state of Kerala? 22. In CO Inspection (RBIA) how much mark
a) Rs.75/- + GST+0.12 (CM Relief Fund) has been assigned for Control Risk?
b) Rs.75/- + GST+0.15 (CM Relief Fund) a) 600 out of 1000
c) Rs.50/- + GST+0.12 (CM Relief Fund) b) 400 out of 1000
d) Rs.100/- + GST c) 300 out of 1000
e) None of the above d) 500 out of 1000
17. 100% jewel loan inspection of total e) None of the above
outstanding is to be conducted in 23. Timeline for page war reply of COIR
______ quarter every year. irregularities and filing FRC is
a) June

131
 _____Months from the date of inspection 29. Which of the following will be treated as
report. fraud?
a) 2 months a) Cash shortage of more than
b) 3 months Rs.10000/-
c) 45 days b) Cash shortage more than Rs.5000/- if
d) 1 month detected by management/auditor not
e) None of the above reported on the date of occurrence
24. CO inspection is to be conducted in the c) Cash shortage up to Rs.5000/- if the
interval of _____months for high risk intention is suspected.
branches. d) All of the above
a) 12 months e) None of the above
b) 15 months 30. In case of banking fraud of more than 25
c) 9 months Crores then compliant has to be lodged
d) 6 months with_______.
e) None of the above a) State Police
25. CO inspection is to be conducted in the b) SFIO
interval of _____months for low risk c) BSFC of CBI
branches. d) All the above
a) 15 months e) None of the above
b) 12 months 31. In case of banking fraud of less than 3
c) 6 months Crores then compliant has to be lodged
d) 9 months with_______.
e) None of the above a) State Police
26. As per CO Inspection which of the b) Anti Corruption Branch of CBI
following is a non zero tolerance c) EOW of CBI
irregularity? d) SFIO
a) BPEC not held e) None of the above
b) 2nd line certificate not held 32. In case of banking fraud of above 3
c) Leakage of income Crores and up to 25 Crores then
d) RC book copy not available compliant has to be lodged
e) None of the above with_______.
27. For all high risk branches preventive
a) ACB of CBI if staff involvement is
vigilance committee meeting is to be
prima facia evident
conducted at __________interval.
a) Monthly b) EOW of CBI if staff involvement is
b) Quarterly prima facia not evident
c) Half yearly c) SFIO
d) Bi monthly d) Both a & b
e) None of the above e) None of the above
28. Cash shortages cases up to ______will not 33. If Rs.10000/- and above fraud
be treated as fraud if the intention is not committed by staff, then complaint
suspected/proved. has to be lodged with ________.
a) Rs.5000/- a) State police
b) Rs.10000/-
b) CBI
c) Rs.25000/-
c) SFIO
d) Rs.20000/-
e) None of the above d) All of the above
e) None of the above

132
34. Hypothecation is defined in which Act? 39. Penalty of Rs. ______ will be levied by
a) SARFAESI Act 2002 RBI to currency chest in case of non-
b) Indian Contract Act 1872 compliance of operational guidelines.
c) Transfer of property Act 1882 a) Rs.5000/-
d) All of the above b) Rs.10000/-
e) None of the above c) Rs.20000/-
35. Which type of bank accounts is d) Rs.30000/-
allowed for ASBA facility in our Bank? e) None of the above
a) Savings Accounts 40. Penalty of Rs. _______ will be levied
b) Current Accounts by RBI to currency chest for any
c) Cash Credit Accounts violation of agreement and deficiency
d) Only a & b of service.
e) None of the above a) Rs.10000/-
36. How many branches of our Bank have b) Rs.50000
been designated as Syndicate ASBA c) Rs.500000/-
branches? d) Rs.100000/-
a) 12 Branches e) None of the above
b) 15 Branches 41. The software used for risk based
c) 20 Branches internal audit in our bank is called
d) 17 Branches as________.
e) None of the above a) eTHIC
37. What is the amount of penalty in case b) ICRA
of shortage in soil note remittances of c) eMAC
denominations up to Rs.50/- and d) CRISIL
currency chest balance? e) None of the above
a) Rs.50/- per piece in addition to the 42. Relieving officers Certificate is to be
loss submitted within ____ days from the
b) Rs.100/- per piece in addition to date of reporting by incoming
the loss manager.
c) Rs.200/- per piece in addition to a) 30 days
the loss b) 15 days
d) No penalty c) 45 days
e) None of the above d) 60 days
38. What is the amount of penalty in case e) None of the above.
of mutilated notes detected in soil 43. Pledge is defined in which Act?
note remittances irrespective of a) Indian Contract Act 1872
denomination and currency chest b) Transfer of property Act 1882
balance? c) Negotiable Instrument Act 1881
a) Rs.50/- per piece d) Consumer Protection Act 1986
b) Rs.100/- per piece 44. Government of India has announced
c) Rs.200/- per piece which scheme for installation of solar
d) Rs.25/- per piece pumps and renewal energy plants in
e) None of the above country?
a) PMAY

133
 b) PM-KISAN credit program or intensive credit
c) PM-KUSUM program.
d) PMKGY a) Scale-III
e) None of the above b) Scale-IV
45. A Pensioner can opt to commute up to c) Scale-II
______% of the pension admissible at d) Scale-V
the time of retirement. e) None of the above
a) 40% 51. SLBC/DCC/Banks to take a view of
b) 30% rescheduling of crop loans if the crop
c) 50% loss is ____% or more.
d) 10% a) 50%
e) None of the above b) 33%
46. The concurrent audit system of bank c) 40%
should cover minimum ____% of d) 80%
advance and ______% of deposit. e) None of the above
a) 60% and 50% 52. If the crop loss is 50% or more, the
b) 60% and 40% restructured period for repayment
c) 40% and 60% Of crop loans may be extended to a
d) 50% and 50% maximum of _____years (including
e) None of the above the moratorium period of one year).
47. Which of the following types of CC a) 5 Years
accounts of exposure 5 Crores and b) 3 Years
above are eligible for stock audit? c) 2 Years
a) CC Staff d) 4 Years
b) CC-ETF e) None of the above
c) CC-Misc. 53. Jewel Loan inspection is to be
d) CC-Stock conducted for two quarters combined
e) None of the above if the no of jewel loan packets less than
48. Mortgage is defined in which Act? ____ in numbers in one quarter.
a) Indian Contract Act 1872 a) 200
b) Transfer of property Act 1882 b) 300
c) Negotiable Instrument Act 1881 c) 100
d) Consumer Protection Act 1986 d) 500
e) None of the above e) None of the above
49. Each auditor should not be given more 54. Banks may allow a maximum period of
than ____ No of branches to conduct repayment up to ____ Years including
short inspection for the half year. the moratorium period of 1 year if
a) 5 crop loss is between 33% and50% in
b) 4 case of crop loan.
c) 1 a) 2
d) 3 b) 3
e) None of the above c) 5
50. The auditor shall not be less than d) 4
Scale____ and under gone multi phase e) None of the above

134
55. Credit Compliance Audit is to be done 58. In case of Sovereign Gold Bond
for all domestic advances having Scheme an individual can purchase
exposure of ______ Lakhs and above. maximum ____ Kg of gold in a financial
a) 100 year.
b) 50 a) 4 Kg
c) 25 b) 5 Kg
d) 10 c) 1 Kg
e) None of the above d) 500Gm
56. All overseas advances having exposure e) None of the above
of _____ lakhs and above are covered 59. In Sovereign Gold Bond scheme, the
under Credit Compliance Audit. bonds shall be repayable on the
a) 50 expiration of ____ years from the date
b) 500 of issue.
c) 100 a) 4 Years
d) 200 b) 5 Years
e) None of the above c) 8 Years
57. Which of the following is correct in d) 9 Years
respect of high risk branch? e) None of the above
a) RM can change the branch 60. Preventive vigilance meeting to be
management if required conducted in ________ interval for all
b) Quarterly progress report to be medium risk branches.
submitted to RO a) Monthly
c) Introduction of concurrent audit b) Quarterly
system if required c) Half Yearly
d) All the above d) Yearly
e) None of the above e) None of the above

Answer Keys:
Q. No Ans Q. No Ans Q. No Ans Q. No Ans Q. no Ans Q. no Ans
1 C 11 A 21 B 31 A 41 A 51 B
2 B 12 B 22 A 32 D 42 B 52 A
3 B 13 B 23 A 33 A 43 A 53 A
4 A 14 D 24 C 34 A 44 C 54 A
5 A 15 A 25 A 35 D 45 A 55 B
6 C 16 A 26 E 36 D 46 A 56 C
7 A 17 B 27 A 37 A 47 D 57 D
8 A 18 A 28 A 38 A 48 B 58 A
9 B 19 D 29 D 39 A 49 A 59 C
10 C 20 A 30 C 40 A 50 A 60 B

135
 Staff Accountability Policy

1) In all cases of Staff Accountability, recovery b) Non-compliance of IT security guidelines

oriented action shall take ______________ including operational aspects.
and the disciplinary action will be c) Revenue leakage in respect of
____________. commission/interest/charges etc. in
a) Precedence, Secondary advance accounts/others.
b) Secondary, Primary d) All of the above
c) Primary, Secondary
e) None of the above
d) Secondary, Precedence
5) Which of the following will fall in the ambit of
e) None of the above
2) Quick Mortality Accounts are those accounts accountability in operational matters at
which became NPA Branch Level?
within___________________ a) Permitting unauthorized access to the
a) One year of original sanction or first system to outsiders/unauthorised
disbursement whichever is earlier persons including BCs/Appraisers.
b) One year of original sanction or first b) Irregularities in purchasing of various
disbursement whichever is later items for official use.
c) Nine months of original sanction or first c) Persistent tendency to delay customer
disbursement whichever is earlier service, reflected in frequent customer
d) Nine months of original sanction or first complaints.
disbursement whichever is later d) All of the above
e) None of the above e) None of the above
3) Which of the following will fall in the ambit of 6) Which of the following will fall in the ambit of
accountability in operational matters at accountability in operational matters at
Branch Level? Branch Level?
a) Non-compliance of the guidelines issued a) Non-adherence to Bank’s human
by IT Department with regard to resource management policies and
functioning of CBS branches with procedures and obligations under labour
reference to backups, passwords etc. legislations.
b) Passing of cheques either for cash b) Not recovering and not paying the
payment/transfer/clearing at base necessary insurance premiums in respect
branch or inter sol which turned to be of the credit accounts, wherever
forged/in-genuine. applicable.
c) Creation of dummy accounts for passing c) Not initiating/delay in initiating legal
through unauthorised transactions. action/recovery process including issue
d) All of the above of SARFAESI notice/taking possession of
e) None of the above assets/auction of assets/filing of suit in
4) Which of the following will fall in the ambit of DRT/appropriate court etc.
accountability in operational matters at d) All of the above
Branch Level? e) None of the above
a) Lack of control in long outstanding items 7) Which of the following will fall in the ambit of
of sundry/suspense debits/accounts and accountability in operational matters at
other impersonal accounts. Branch Level?

136
 a) Not issuing of Relieving officers matters at RO/CO Level?
certificate. a) Causing inordinate delay in completing
b) Non maintenance of office order book, Staff Accountability within the stipulated
containing the role functions of various time.
officials in the branch. b) Failure in monitoring of the accounts, not
c) Not properly maintaining and updating getting the returns from the branches,
the key movement registers/vault delay in review of CAF returns submitted
register and also jewel movement by the branches.
register. c) Delay in processing of sanction and
d) All of the above review/renewal proposals forwarded by
e) None of the above the branch.
8) Which of the following will fall in the ambit of d) All of the above
accountability in operational matters at e) None of the above
Branch Level? 11) Which of the following lapses will
a) Wrong reporting of data leading to warrant staff accountability?
punitive measures on the Bank. a) Closing the irregularities reported in the
b) Wrong reporting/false confirmation of COIR with submission of incorrect
compliance by the Branches/RO to the confirmation/replies without actual
inspection observations whether in the rectification.
credit or non-credit matters. b) Closing the irregularities reported in the
c) Non presentation of documents received Concurrent Auditors report with
for collection, both inward and outward submission of incorrect
within stipulated time. confirmation/replies without actual
d) All of the above rectification.
e) None of the above c) Closing the irregularities reported in the
9) Which of the following will fall in the ambit of Stock Audit report with submission of
accountability in operational matters at incorrect confirmation/replies without
RO/CO Level? actual rectification.
a) Non-submission/delayed submission of d) a & b
control returns including tax returns e) All of the above
within stipulated time. 12) Credit facilities sanctioned by RLCC/Grid
b) Delay in permitting the branches to where lapses have been
initiate legal action/recovery process identified at a later date in credit
including issue of SARFAESI notice/taking assessment/appraisal with willful
possession of assets/auction of suppression of material facts who are all
assets/filing suit in DRT/appropriate will be held responsible?
court etc. a) Members of RLCC/Grid
c) Not adhering to the time lines in disposal b) Processing officials who have
of the matters or causing inordinate assessed/appraised
delay. c) Head of the advances department at
d) All of the above Regional Office
e) None of the above d) Regional Manager
10) Which of the following will fall in the e) None of the above
ambit of accountability in operational?

137
13) In the case of Joint Appraisal practices to the Regional Office/Central
Memorandum (JAM) with respect to Office and for being a silent spectator
consortium advances where the lead which has resulted in damage to the
bank’s appraisal is accepted and put up to Bank’s interest/property.
the sanctioning authority, who shall be held c) Inordinate delay in stock audit
responsible if any lapse identified at a review/CCA review.
later date? d) a&b
a) Members of RLCC/Grid e) All of the above
b) Processing officials who have put up the 17) In examination of Staff Accountability
proposal with regard to Revenue Leakage which
c) Members who have sanctioned the of the following is/are correct?
proposal a) Where technology malfunction/system
d) Members who have appraised the failure results in revenue leakage on
proposal account of any omission/commission on
e) None of the above part of the officials in IT
14) In the case of Joint Appraisal Department/Technology monitoring.
Memorandum (JAM) jointly by Branch & RO b) If the revenue leakage identified for an
with respect to advances under sole amount of up to Rs.1 lakh and the entire
banking who shall be held responsible amount is recovered, then no staff
for appraisal deficiencies for any flagrant accountability will lie on any official.
violation found? c) If the revenue leakage identified for an
a) Branch officials amount of Rs.1 lakh and above, then staff
b) RO officials accountability will be examined though
c) Members who have sanctioned the the entire amount is recovered.
proposal d) a & b
d) a & b e) All of the above
e) None of the above 18) Who has the authority to probe on Staff
15) Which of the following are the areas of Accountability for the lapse attributable to
irregularities in the operational Regional Manager?
matters? a) GM - Inspection
a) Handing/Taking over of charge report b) GM - HR
b) Outside borrowing by staff members c) Concerned committee at CO
c) Delay in disposal of loan proposals d) Concerned committee at RO
d) b&c e) None of the above
e) All of the above 19) Who has the authority for closure of Staff
16) Which of the following will fall under the Accountability for the lapse attributable to
ambit of staff accountability? staff at central office?
a) Non achievement/fulfilment of expected a) IAC - CO
business parameters and also avoiding of b) GM - HR
taking bonafide business decisions c) Concerned Department Head where the
without justifiable reasons. lapse occurred
b) Employees by their acts of d) GM – Inspection
omission/commission fail to escalate e) None of the above
irregularities/deviations/unethical

138
20) When an advance account of Rs.1.00 b) Credit in charge
crore and above slips into non- c) Jewel Appraiser
performing category, to whom shall the d) All of the above
branch incumbent will submit a NPA e) None of the above
PROFILE for conduct a study on staff 25) What is the timeline for completion and
accountability? disposal of Staff Accountability
a) IAC - CO Investigation in respect of Quick
b) Staff Accountability Cell, CO Mortality Account?
c) Concerned Regional Authority a) 180 days from the date of its
d) GM – Inspection classification as Quick Mortality Account
e) None of the above b) 90 days from the date of its classification
21) In processing the credit proposal who is as Quick Mortality Account
responsible for proper scrutiny of c) 120 days from the date of its
financial statements including KYC classification as Quick Mortality Account
norms? d) 180 days from the date of its
a) Manager Line classification as NPA
b) Second line e) None of the above
c) Appraising authority 26) In respect of credit matters that are
d) All of the above classified as fraud who will advise FRMC
e) None of the above to conduct investigation and further course of
22) Who will be held responsible for any action?
lapse in documentation, CERSAI, Vetting a) GM - Inspection
of documents? b) GM - HR
a) Manager I line c) Staff Accountability Cell, CO
b) Credit in charge d) Vigilance Department, CO
c) Appraising authority e) None of the above
d) a & b 27) For NPAs above Rs.1 lac and up to Rs.10
e) All of the above lacs per borrower where immovable property
23) Who will be held responsible in case of is not taken as security including agricultural
jewel loans where an inspection has taken loans and loans under Government
place after sanction of jewel loan and sponsored schemes, who will examine Staff
subsequently the jewel is found Accountability and initiate action if any lapse
to be spurious? identified at Regional Office?
a) The jewel appraiser, who appraised the a) Chief Manager, CRMD
jewel at the time of sanction b) Second line of Regional Office
b) The jewel appraiser who has certified the c) Regional Manager
purity of jewels during last inspection d) Senior Manager, CRMD
c) a & b e) None of the above
d) Manager I Line 28) For NPAs with book outstanding of
e) All of the above Rs.100 lakhs and above who shall cause
24) Who will be held responsible for any cause the investigation and examine
lapse in wax sealing of jewel loan Staff Accountability and initiate action?
packets? a) Inspection Department, RO
a) Joint custodians b) Vigilance Department, CO

139
 c) Staff Accountability Cell, CO 31) Who will be having the authority to take
d) Credit Monitoring Department, RO disciplinary action against officials in scale
e) None of the above I?
29) In case of accounts with a long standing a) AGM/SRM or Scale V at RO
association and availing credit facilities with b) DGM/CRM
the bank for the last __________years or c) GM - HR
more and continuing as performing d) Chief Managers at RO
asset as on date of its turning to NPA, in such e) None of the above
cases the Staff Accountability may be 32) Who will be having the authority to take
examined from __________ years prior to disciplinary action against officials in scale
the account turning to NPA. IV & V?
a) Eight & Three a) AGM/SRM or Scale V at RO
b) Three & Eight b) DGM/CRM
c) Five & One c) GM or Scale VII
d) Five & Two d) Chief Managers at RO
e) None of the above e) None of the above
30) While examining Staff Accountability in 33) The decision of SAC/IAC in all accounts
respect of officials in the cadre of deliberated by it and has Book
_____________and above the case will outstanding of Rs. __________ or above
be referred to __________ for as on date of NPA shall be referred to
concurrence/clearance irrespective of ___________for advice?
amount. a) 1 crore & CVO of the Bank
a) Chief Manager & CVO b) 1 crore & ED
b) AGM & CVO c) 3 crores & ED
c) Chief Manager & ED d) 3 crores & CVO of the Bank
d) AGM & ED e) None of the above
e) None of the above

Answer Keys:
Q. No Ans Q. No Ans Q. No Ans Q. No Ans
1 A 11 E 21 C 31 A
2 B 12 B 22 D 32 C
3 D 13 E 23 C 33 D
4 D 14 D 24 A
5 D 15 E 25 B
6 D 16 E 26 D
7 D 17 E 27 B
8 D 18 A 28 C
9 D 19 A 29 A
10 D 20 B 30 B

140
 Companies Act 2013

1) What is the minimum paid up capital required date of their issue except for infrastructure
for a public limited company? projects where it is _______years.
a) Rs.1.00 lakh a) 20 & 20
b) Rs.5.00 lakh b) 20 & 25
c) No requirement of minimum paid up c) 20 & 30
capital d) 10 & 20
d) Rs.10.00 lakh e) None of the above
e) None of the above 7) The purpose/objective for which the company
2) What is the minimum number of members in is formed is mentioned in which document?
a public limited company? a) Articles of Association
a) 7 b) Memorandum of Association
b) 2 c) Certificate of Incorporation
c) 200 d) Board Resolution
d) 3 e) None of the above
e) None of the above 8) The rules and regulations to manage internal
3) What is the maximum number of members in affairs of a company are mentioned in which
a private limited company? document?
a) 7 a) Articles of Association
b) 2 b) Memorandum of Association
c) 200 c) Certificate of Incorporation
d) 3 d) Board Resolution
e) None of the above e) None of the above
4) Paid up share capital of a small company does 9) The borrowing powers of a company is
not exceed Rs. ___________ or turnover as mentioned in which document?
per its last profit and loss account should not a) Articles of Association
exceed Rs. _________. b) Memorandum of Association
a) 50 lakhs & 5 crores c) Certificate of Incorporation
b) 2 crores & 20 crores d) Board Resolution
c) 1 crore & 20 crores e) None of the above
d) 1 crore & 10 crores 10) Who is primary responsible in registering
e) None of the above the charge with ROC in case of
5) Companies formed to promote the charitable company availing credit facilities from a
objects of commerce, art, science, sports, Bank and what is the time limit for filing
education, research, social welfare, religion, the same without penalty?
charity, protection of environment etc. are to a) The Company & 30 days
be incorporated under which section of b) Bank & 30 days
Companies Act 2013? c) Bank & 60 days
a) Section 2(68) d) The Company & 60 days
b) Section 455 e) None of the above
c) Section 2(71) 11) An individual cannot become an
d) Section 8 independent director of more than
e) None of the above _______ listed companies?
6) A company may issue preference shares a) 20
which are liable to be redeemed within a b) 10
period not exceeding _______years from the c) 7

141
 d) 25 d) 33
e) None of the above e) None of the above
12) An individual cannot become a director 17) The share premium may be used by a
of more than_______ companies? company for _______
a) 20 a) Issue of bonus shares
b) 10 b) In writing off the preliminary expense of
c) 7 the company
d) 25 c) For purchase of its own shares or other
e) None of the above securities
13) If a company doesn’t have a common d) In writing off the expenses on issue of
seal who shall have the authority to sign its shares or debentures of the company
documents? e) All of the above
a) Two directors 18) Any change in the name of a company
b) A director & company secretary shall be effected only with the
wherever the company has appointed a approval of the ___________.
company secretary a) ROC
c) Either a or b b) Board of Directors
d) Company secretary alone c) Central Government
e) None of the above d) Board Resolution
14) Can an NRI incorporate One Person e) None of the above
Company (OPC) in India? 19) A prospectus in respect of which the
a) Yes, but he should have stayed in India securities are issued for subscription in
for a period not less than 182 days in the one or more issues over a certain period
preceding financial year. without the issue of a further
b) Yes, but he should have stayed in India prospectus is known as ________
for a period not less than 120 days in the a) Red Herring Prospectus
preceding financial year. b) Shelf Prospectus
c) No, only resident Indian can incorporate c) Long Term Prospectus
OPC d) Either a or b
d) Either a or b e) None of the above
e) None of the above 20) The prospectus in which does not include
15) What is the minimum number of women the complete particulars of quantum or
directors in the board of a price of the securities included therein during
company? offer for capital raising by a company is
a) Two known as ________
b) One a) Red Herring Prospectus
c) At least One b) Shelf Prospectus
d) 1/3rd of the total number of directors c) Long Term Prospectus
e) None of the above d) Either a or b
16) The shares with Differential Voting Rights e) None of the above
(DVRs) shall not exceed _____percent 21) As per CSR policy every company having
of the total post-issue paid up equity share Networth of Rs. ______ or more (or)turnover
capital of a company including equity shares of Rs. __________ or more (or) net profit of
with differential rights at any point of Rs. _______ or more during the immediately
time? preceding financial year shall spend at least
a) 39 _____percent of its average net profits
b) 26 made during the three immediately preceding
c) 20 financial years.

142
 a) 1000, 2000, 5 and 5 26) How many days’ notice to be served for
b) 500, 1000, 5 and 2 an Annual General Meeting?
c) 1000, 500, 2 and 5 a) At least 7 days.
d) 500, 2000, 5 and 2 b) At least 21 days.
e) None of the above c) At least 14 days.
22) When the consent of shareholders in d) At least 30 days.
general meeting is required for e) None of the above
companies to pay managerial 27) What is the minimum number of
remuneration? directors in a public limited company?
a) In excess of 11% of net profit a) 2
b) In excess of 10% of net profit b) 3
c) In excess of 11% of gross profit c) 7
d) In excess of 10% of gross profit d) 200
e) None of the above e) None of the above
23) Which form will be used for creation and 28) Which of the following statements is/are
satisfaction of charge with ROC? correct?
a) CHG 3 & CHG 5 a) A company has to hold minimum 4 board
b) CHG 1 & CHG 4 meetings in a year and there shall not be
c) CHG 4 & CHG 1 more than 120 days’ gap between two
d) CHG 3 & CHG 4 consecutive board meetings.
e) None of the above b) In case of one person company at least
24) What is dormant company? one board meeting in each half of a
a) A company generally formed for future calendar year and the gap between two
projects and has no significant meetings shall not be less than 90 days.
accounting transaction. c) In case of dormant company at least one
b) A company whose paid up capital does board meeting in each half of a calendar
not exceed two crore rupees or turnover year and the gap between two meetings
as per its last profit and loss account does shall not be less than 90 days.
not exceed twenty crore rupees. d) In case of section 8 company at least one
c) A company whose securities are listed on board meeting in each half of a calendar
any recognized stock exchange. year and the gap between two meetings
d) A company which was incorporated shall not be less than 90 days.
under section 8 of companies’ act, 2013. e) All of the above
e) None of the above 29) Which of the following statements is/are
25) What is an Associate company? correct with respect to preference shares?
a) A company generally formed for future a) Preference shareholders do not have
projects and has no significant voting rights.
accounting transaction. b) They have the preference over the equity
b) A company whose paid up capital does shareholders in payment of dividend.
not exceed two crore rupees or turnover c) Preference shares can be converted to
as per its last profit and loss account does equity shares.
not exceed twenty crore rupees. d) Rate of dividend is fixed and these are
c) A company in which other company has redeemable during the life time of the
a significant influence i.e., control of at company.
least 20% of total voting power. e) All of the above
d) A company which was incorporated 30) What is a foreign company?
under section 8 of company’s act, 2013. a) Any company incorporated outside India
e) None of the above which has a place of business in India

143
 whether by itself or through an agent and 32) What is the minimum number of
conducts any business activity in India. members and directors in a producer
b) A company which is incorporated in India company?
and having its place of business outside a) 10 individuals or 2 producer institutions
India. and 5 directors.
c) A company generally formed for future b) 20 individuals and 3 directors.
projects and has no significant c) 7 individuals and 3 directors.
accounting transaction. d) 3 individuals and 2 directors.
d) A company whose paid up capital does e) None of the above
not exceed two crore rupees or turnover 33) Under what circumstances preference
as per its last profit and loss account does shareholders shall have a right to vote on
not exceed twenty crore rupees. all the resolutions placed before the
e) All of the above company?
31) A company which is having its branch a) Preference shareholders don’t have any
office in Mumbai and having manufacturing voting rights.
unit at Chennai. Now the company has availed b) Where the dividend in respect of a class
a term loan from one of the bank in of preference shares has not been paid
Bangalore for setting up of a manufacturing for a period of two years or more.
unit at Delhi. In this case in which ROC c) Where the dividend in respect of a class
charge on the assets will be created? of preference shares has not been paid
a) Mumbai ROC. for any year.
b) Chennai ROC. d) Where the dividend in respect of a class
c) Bangalore ROC. of preference shares has not been paid
d) Where Registered office of the company for a period of three years or more.
situates. e) None of the above
e) Any of the above ROCs

Answer Keys:

Q. No Ans Q. No Ans Q. No Ans Q. No Ans

1 C 11 C 21 B 31 D
2 A 12 A 22 A 32 A
3 C 13 C 23 B 33 B
4 B 14 B 24 A
5 D 15 C 25 C
6 C 16 B 26 B
7 B 17 E 27 B
8 A 18 C 28 E
9 B 19 B 29 E
10 A 20 A 30 A

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 Module K - IMP POLICIES, CIRCULAR, SCHEME &RBI
CIRCULARS ISSUED IN 2021-22
IOB Policies/Imp Circulars Launched in 2021-22

1. Supreme Court has ordered in the wake of 5. Subhagruha Cash Credit scheme can be given
Corona Pandemic that the period between to _________________?
_______________ are excluded for a) Any customer satisfying 50 % norms
calculating limitation period? b) Businessmen having Minimum ITR of Rs.
a) 31.03.2020 and 28.02.2022 1.50 lakh per annum
b) 15.03.2020 and 28.02.2022 c) Existing customers only
c) 31.03.2020 and 31.03.2022 d) Salaried customers only
d) 15.03.2020 and 31.03.2022 e) None of these
e) None of these 6. Maximum amount under IOB SME Easy
2. Member Lending Institutions can now apply scheme has been increased
for guarantee cover under CGTMSE for fresh to____________?
coverage _________________________? a) Rs. 5.00 Crore
a) Before subsequent quarter of loan b) Rs. 7.50 Crore
disbursement c) Rs. 10.00 Crore
b) Before the quarter of loan disbursement d) Rs. 12.00 Crore
c) Before month end of loan disbursement e) None of these
d) Anytime during the tenure of loan 7. For Term loans against security of gold
provided the credit facility was not ornaments -for all scales up to DGM, uniform
restructured /remained in SMA 2 status power of ________________is given?
in last one year from the date of a) Rs. 15 lakh
submission of application b) Rs. 10 lakh
e) None of these c) Rs. 25 lakh
3. PMSVANIDHI loans which are closed in time d) Rs. 20 lakh
or repaid early are eligible for the 2nd e) None of these
tranche loan. Minimum amount of loan for 8. For financing under DAY NRLM Scheme,
2nd tranche is____________? submission and settlement of claims made by
a) Rs. 5000/- and maximum is Rs. 15000/- banks would be done on
b) Rs. 10000/- and maximum is Rs. 20000/- ____________basis?
c) Rs. 15000/- and maximum is Rs. 20000/- a) Monthly
d) Rs. 20000/- and maximum is Rs. 50000/- b) Quarterly
e) None of these c) Half yearly
4. Minimum amount that can be sanctioned d) Annually
under Subhagruha Cash Credit scheme e) None of these
is_________________? 9. NCTC has notified modification in the existing
a) Rs. 20 lakhs GECL scheme and extension of the scheme
b) Rs. 15 lakhs up to 31.03.2022 or till guarantees for an
c) Rs. 10 lakhs amount of ___________are issued by
d) Rs. 5 lakhs NCGTC, whichever is earlier. Further, last
e) None of these

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 date of disbursement is extended 14. For Point of Sale Business, in addition to
till__________? Bijlipay, our bank has done tie up
a) Rs. 4.00 lakh crore, 31.03.2022 with________________?
b) Rs. 4.50 lakh crore, 30.06.2022 a) M/s Payswiff Solutions Pvt Ltd.
c) Rs. 5.00 lakh crore, 30.06.2022 b) M/s Clonet.
d) Rs. 5.00 lakh crore, 31.03.2022 c) M/s Revel Systems.
e) None of these d) M/s eHopper.
10. CGTMSE has increased the threshold limit for e) None of these
waiver of legal action while invoking the 15. Sovereign Gold Bond Scheme- bond shall be
guarantee to _____________per claim repayable on the expiration of __________
based on the aggregate outstanding amount years from the date of issue of the bond?
considered eligible for claim settlement by a) 5
CGTMSE where the filing of legal proceedings b) 6
is waived? c) 7
a) Rs. 100000/- d) 8
b) Rs. 50000/- e) None of these
c) Rs. 150000/- 16. Revised safe Deposit Locker Agreement
d) Rs. 60000/- should be obtained from all locker
e) None of these holders_____________?
11. In order to boost our Jewel loan portfolio, our a) Both existing and future/new customers
bank has extended granting of Jewel Loans b) Only future/new customers
against ____________Gold Jewellery also? c) Only existing customers
a) Minimum 18 carat d) Need not to be obtained
b) Minimum 20 carat e) None of these
c) Minimum 22 carat 17. Recently, bank has changed the scheme
d) Minimum 24 carat names of our existing __________________
e) None of these products?
12. Interest rate for Jewel Loan (Others) Scheme a) Subhagruha loan only
is linked to ___________? b) Clean Loan only
a) MCLR c) Personal Loan only
b) RLLR d) Clean Loan & Personal Loan
c) Base rate e) None of these
d) MCLR/RLLR 18. Our bank has floated IOB REPO Linked SHORT
e) None of these TERM LOAN, a separate scheme for bill
13. Under LAP scheme, revised delegated discounting and short term loans, linked with
powers according to increase in loan Repo based rate of interest, to.?
quantum increased to _______________? a) Profit making PSUs (rated AAA & AA) only
a) Rs. 7.50 crores b) PSUs with state Govt guarantee, State
b) Rs. 10 crores Govt organization only
c) Rs. 12.50 crores c) Pharma companies (rated AAA & AA)
d) Rs. 15 crores d) Profit making PSUs (rated AAA & AA),
e) None of these PSUs with state Govt guarantee, State
Govt organization, pharma companies
(rated AAA & AA)

146
 e) None of these a) Railway
19. IOB Oxy scheme is for granting loans for what b) Hospitality
purpose? c) Retail and wholesale trade
a) For setting up of oxygen plants for d) Educational institution
medical use and to finance units engaged e) None of these
in manufacturing of liquid oxygen, 23. PM Formalization of Micro Food Processing
oxygen cylinders, etc. Enterprises Scheme- (PM FME) is for what
b) For tourism sector purpose?
c) For hospitality sector a) Railway
d) For CA b) Hospitality
e) None of these c) Retail and wholesale trade
20. Sanjeevini Plus scheme is for granting of d) An all India centrally sponsored scheme
loans for what purpose? for providing financial, technical and
a) to start startup firm business support to address the
b) for CA challenges faced by the micro
c) for Agri purpose enterprises and to tap the potential of
d) to support the health care and allied groups and cooperatives in supporting
sectors under the COVID conditions, the the up gradation and formalization of
existing Sanjeevini Scheme is modified, existing micro food processing
which will enable the branches to enterprises
popularise and thereby enable the e) None of these
growth of MSME under priority sector 24. As per NRLM financing guidelines, At the time
advance of credit linkage of SHGs, bank may
e) None of these undertake KYC verification of
21. Under GECL extension, existing borrowers _______________However, opening of SB
under ECLGS 1 & 2 would be eligible for A/c of all members with the bank shall not be
additional credit support of up to made a prerequisite for credit linkage of
__________ of total outstanding as on SHGs.
_____________? a) all the members in the SHG
a) 10%, 29.02.2020 or 31.03.2021 b) Only authorized signatories
whichever is higher c) Only President
b) 20%, 29.02.2020 or 31.03.2021 d) Only treasurer
whichever is higher e) None of these
c) 10%, 01.02.2020 or 31.03.2020 25. W.e.f. 22.07.2021, Branches should not issue
whichever is higher any _____________variant of debit card to
d) 10%, 29.02.2020 or 31.03.2020 customers. Undelivered master cards lying in
whichever is higher the branches also shouldn't be delivered to
e) None of these the customers?
22. __________________has been added into a) fresh Master Card
MSME category recently for the limited b) VISA card
purpose of Priority Sector lending and they c) RuPay Card
would be allowed to be registered on Udyam d) Signature card
registration Portal? e) None of these

147
Answer:

Q A Q A Q A Q A Q A

1 B 6 B 11 A 16 A 21 A

2 D 7 C 12 B 17 D 22 C

3 C 8 A 13 B 18 D 23 D

4 A 9 B 14 A 19 A 24 A

5 D 10 A 15 D 20 D 25 A

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