BUSINESS CORRESPONDENT/FACILITATOR (BC/F)

MULTIPLE CHOICE QUESTIONS (MCQ)

Q1. What does BC stand for in banking services?

a) Business Consultant
b) Banking Clerk
c) Business Correspondent
d) Banking Coordinator
Answer: c) Business Correspondent

Q2. Who are Business Facilitators (BFs)?

a) Bank employees
b) People who provide loans
c) Supporters of financial literacy and banking services
d) Insurance agents
Answer: c) Supporters of financial literacy and banking services

Q3. Which of the following is NOT eligible to become a BC/F?

a) Retired bank staff
b) Common Service Centre (CSC) operators
c) Loan defaulters
d) NGO under Societies Act
Answer: c) Loan defaulters

Q4. What is the maximum amount allowed per transaction for a BC/F?
a) ₹500
b) ₹1000
c) ₹2000
d) ₹5000
Answer: c) ₹2000

Q5. What is the primary goal of a BC/F?

a) Selling luxury services
b) Financial inclusion
c) Creating digital wallets
d) Auditing bank accounts
Answer: b) Financial inclusion
Q6. What is one of the core functions of BCs?
a) Monitoring RBI branches
b) Conducting training for bank staff
c) Helping customers with deposits and withdrawals
d) Fixing ATMs
Answer: c) Helping customers with deposits and withdrawals

Q7. Which segment is least likely to need a Demat account?

a) Stock investors
b) Farmers
c) Traders
d) NRI businessmen
Answer: b) Farmers

Q8. What is meant by ‘no-frills’ account?

a) Account with luxury features
b) High-balance account
c) Zero or low-balance account
d) Investment-based account
Answer: c) Zero or low-balance account

Q9. What does KYC stand for?

a) Know Your Code
b) Know Your Company
c) Know Your Customer
d) Keep Your Card
Answer: c) Know Your Customer

Q10. Which of these documents is used for identity verification?

a) Electricity bill
b) Rent agreement
c) PAN card
d) Bank passbook
Answer: c) PAN card

Q11. RFM segmentation includes:

a) Rural, Financial, Monthly
b) Recency, Frequency, Monetary
c) Ready Funds Management
 d) Risk-Finance-Market
Answer: b) Recency, Frequency, Monetary

Q12. What type of customer segmentation is based on lifestyle and values?

a) Demographic
b) Geographic
c) Psychographic
d) Behavioral
Answer: c) Psychographic

Q13. What is the function of a Customer Interaction Log?

a) Record only complaints
b) Track sales only
c) Record all client queries and feedback
d) List only high-value customers
Answer: c) Record all client queries and feedback

Q14. Which of the following is a standard compliance requirement?

a) Selling maximum insurance
b) Ignoring suspicious transactions
c) Adhering to RBI guidelines
d) Hiding customer data
Answer: c) Adhering to RBI guidelines

Q15. What is CDD in the context of banking?

a) Certified Data Delivery
b) Credit Document Demand
c) Customer Due Diligence
d) Central Deposit Development
Answer: c) Customer Due Diligence

Q16. Which risk refers to a borrower not repaying the loan?

a) Liquidity Risk
b) Operational Risk
c) Credit Risk
d) Interest Rate Risk
Answer: c) Credit Risk
Q17. What type of account is usually opened by businesses?
a) Fixed Deposit
b) Current Account
c) Savings Account
d) NRI Account
Answer: b) Current Account

Q18. What is the primary role of financial literacy programs?

a) Audit bank branches
b) Teach about cryptocurrencies
c) Educate customers about financial products
d) Sell credit cards
Answer: c) Educate customers about financial products

Q19. Which of the following is an example of a behavioral segment?

a) Customers who do frequent ATM withdrawals
b) Customers living in Mumbai
c) Customers aged above 60
d) Customers with an income above ₹10 lakh
Answer: a) Customers who do frequent ATM withdrawals

Q20. What is the purpose of Daily Transaction Reports?

a) List staff salary details
b) Track number and type of transactions
c) Measure annual profits
d) Evaluate marketing costs
Answer: b) Track number and type of transactions

Q21. Who regulates the role of BC/F in India?

a) IRDA
b) SEBI
c) RBI
d) NITI Aayog
Answer: c) RBI

Q22. Which of the following is not a part of Know Your Customer (KYC) documentation?
a) Address Proof
b) Identity Proof
c) Customer Selfie
 d) PAN Card
Answer: c) Customer Selfie

Q23. What is the purpose of a nomination form in banking?

a) To apply for a loan
b) To register for mobile banking
c) To designate who receives funds in case of account holder's death
d) To activate a credit card
Answer: c) To designate who receives funds in case of account holder's death

Q24. Which customer segment is most likely to use premium credit cards?
a) Daily wage earners
b) Senior citizens
c) High-income professionals
d) Teenagers
Answer: c) High-income professionals

Q25. What is included in a Compliance Report?

a) Sales projections
b) KYC and AML adherence
c) Advertising details
d) Digital footprint of clients
Answer: b) KYC and AML adherence

Q26. What do we mean by ‘financial inclusion’?

a) Inclusion of companies in stock market
b) Providing access to financial services to all sections of society
c) Creating foreign banks
d) Allowing FDI in banking
Answer: b) Providing access to financial services to all sections of society

Q27. Who can be appointed as BC/F as per RBI norms?

a) Only engineers
b) Any eligible individual or NGO
c) Only bank employees
d) Only CSC owners
Answer: b) Any eligible individual or NGO
Q28. Operational risk is caused due to:
a) Market fluctuations
b) Software or system failure
c) Inflation
d) Credit default
Answer: b) Software or system failure

Q29. Which of the following banks is known for segment-based credit cards?
a) SBI
b) ICICI Bank
c) PNB
d) BOI
Answer: b) ICICI Bank

Q30. What is a common use of PAN card in banking?

a) Proof of residence
b) For gaming licenses
c) Tax compliance and large transactions
d) ATM card application
Answer: c) Tax compliance and large transactions

Q31. What does AML stand for in banking compliance?

a) Asset Market Lending
b) Annual Money Limit
c) Anti-Money Laundering
d) Authorized Money Loan
Answer: c) Anti-Money Laundering

Q32. In the BC model, what does “last-mile delivery” mean?

a) Delivering food with payment
b) Providing loans to millionaires
c) Reaching customers in remote locations
d) Offering high-end banking to corporates
Answer: c) Reaching customers in remote locations

Q33. What is meant by a recurring deposit?

a) A one-time deposit
b) Monthly deposit account with fixed duration
c) Trading account
d) NRI foreign exchange account
Answer: b) Monthly deposit account with fixed duration
Q34. Which is a key step in verifying a customer during account opening?
a) Checking social media profile
b) Verifying KYC documents
c) Asking for ATM PIN
d) Collecting thumb impression only
Answer: b) Verifying KYC documents

Q35. Who benefits directly from the efforts of BC/Fs?

a) Urban youth
b) HNI investors
c) Financially excluded populations
d) Foreign investors
Answer: c) Financially excluded populations

Q36. Liquidity risk is best described as:

a) Risk of non-payment by borrower
b) Risk of cash shortage to meet obligations
c) Risk of outdated technology
d) Risk of no customers visiting
Answer: b) Risk of cash shortage to meet obligations

Q37. Which of the following is a correct reporting format?

a) Daily Selfie Sheet
b) Customer Birthday Report
c) Daily Transaction Report
d) Credit Card Promo Report
Answer: c) Daily Transaction Report

Q38. In a joint account, what must be clearly mentioned?

a) OTP number
b) Address of nominee only
c) Mode of operation (single or joint signature)
d) Net worth of all holders
Answer: c) Mode of operation (single or joint signature)

Q39. What kind of account is typically used by salaried individuals?

a) Current Account
b) Demat Account
 c) Savings Account
d) NRI Account
Answer: c) Savings Account

Q40. What is the main goal of customer segmentation in banking?

a) Increase office space
b) File KYC faster
c) Serve customers based on their needs and preferences
d) Reduce workforce
Answer: c) Serve customers based on their needs and preferences

Q41. The R in RFM stands for:

a) Revenue
b) Recency
c) Rating
d) Reserves
Answer: b) Recency

Q42. A Business Correspondent must follow which code strictly?

a) Dress Code
b) Driving Code
c) Code of Conduct
d) Access Code
Answer: c) Code of Conduct

Q43. The information system used for updating customer records must ensure:
a) Free advertising
b) Public access
c) Accuracy and data security
d) Account blocking
Answer: c) Accuracy and data security

Q44. Which customer segment is most likely to need retirement planning assistance?
a) Teenagers
b) Senior citizens
c) Small business owners
d) Start-up founders
Answer: b) Senior citizens
Q45. What is included in the income verification documents?
a) Passport
b) PAN card
c) Salary slips or ITR
d) Electricity bill
Answer: c) Salary slips or ITR

Q46. What is an effective channel for BCs to engage customers digitally?

a) Mails only
b) Printed bills
c) SMS and mobile banking
d) Verbal memos
Answer: c) SMS and mobile banking

Q47. Who issues guidelines for BC appointment and operations in India?

a) SEBI
b) NABARD
c) RBI
d) Ministry of Finance
Answer: c) RBI

Q48. Which one of these is a psychographic customer trait?

a) Age
b) Occupation
c) Lifestyle preference
d) City
Answer: c) Lifestyle preference

Q49. Which of the following is NOT a valid identity proof?

a) Aadhar
b) Voter ID
c) Driving License
d) Electricity Bill
Answer: d) Electricity Bill

Q50. What must a BC/F do before delivering account opening documents to the branch?
a) Shred documents
b) Verify and validate all information
c) Sign them all personally
 d) Ask for ATM PIN
Answer: b) Verify and validate all information

Q51. What is the main role of a BC/F during account opening?

a) Loan approval
b) Personal banking advice
c) Verifying documents and customer details
d) Issuing cheque books
Answer: c) Verifying documents and customer details

Q52. Which of these is a compliance responsibility of BCs?

a) Ignoring customer disputes
b) Avoiding documentation
c) Reporting suspicious transactions
d) Selling without receipts
Answer: c) Reporting suspicious transactions

Q53. Which of the following is an example of market risk?

a) Software crash
b) Change in gold prices affecting collateral
c) Branch staff strike
d) Customer service delay
Answer: b) Change in gold prices affecting collateral

Q54. What kind of transactions can a BC/F help with?

a) Stock trading
b) Foreign investment
c) Basic banking like deposits and withdrawals
d) Mutual fund regulation
Answer: c) Basic banking like deposits and withdrawals

Q55. Why is updating customer details in the system essential?

a) To reduce internet usage
b) To improve branch size
c) To ensure compliance and service quality
d) To track ad campaigns
Answer: c) To ensure compliance and service quality

Q56. What is the primary purpose of using reports in banking operations?

a) Decorate the branch
 b) Impress customers
c) Improve decision-making and transparency
d) Replace staff
Answer: c) Improve decision-making and transparency

Q57. Which document is essential for a credit card application?

a) Rent agreement
b) Land deed
c) Income proof
d) Class 10th certificate
Answer: c) Income proof

Q58. What is the maximum per customer transaction limit for cash withdrawals by a BC/F?
a) ₹1000
b) ₹1500
c) ₹2000
d) ₹2500
Answer: c) ₹2000

Q59. What is one way to ensure ethical conduct by BCs?

a) Ignoring KYC norms
b) Providing financial advice without qualification
c) Adhering to RBI guidelines and training
d) Using personal accounts for transactions
Answer: c) Adhering to RBI guidelines and training

Q60. Which of the following is a benefit of customer segmentation?

a) Simplifies banking for all
b) Creates confusion
c) Helps target services based on needs
d) Reduces technology use
Answer: c) Helps target services based on needs

Q61. What is the most appropriate way to approach customers for banking services?
a) Without identification
b) With cold calls only
c) Using a respectful, informed and need-based method
d) Through gossip
Answer: c) Using a respectful, informed and need-based method
Q62. What does FATF stand for?
a) Financial Action Task Force
b) Fund Allocation Trust Forum
c) Fiscal Asset Testing Fund
d) Financial Authority of Trading Firms
Answer: a) Financial Action Task Force

Q63. What is the key use of a Monthly Performance Report?

a) Decide office holidays
b) Track customer birthdays
c) Assess BC/F progress and plan improvements
d) Compare salaries
Answer: c) Assess BC/F progress and plan improvements

Q64. Which of the following is true about KYC documents?

a) They are optional
b) Only PAN is needed
c) They verify customer identity and address
d) Used only for loan processing
Answer: c) They verify customer identity and address

Q65. Which risk arises from a mismatch in loan and deposit maturity?
a) Operational Risk
b) Liquidity Risk
c) Market Risk
d) Credit Risk
Answer: b) Liquidity Risk

Q66. Why should BCs record customer feedback?

a) To entertain customers
b) To report sales only
c) To improve services and responsiveness
d) To increase costs
Answer: c) To improve services and responsiveness

Q67. Which of the following roles may BCs perform?

a) Conducting salary negotiations
b) Managing credit card billing
 c) Cross-selling financial products
d) Deciding RBI policies
Answer: c) Cross-selling financial products

Q68. What type of segment prefers mobile-based transactions?

a) Psychographic
b) Geographic
c) Behavioral
d) Demographic
Answer: c) Behavioral

Q69. What document is NOT required to open a Demat account?

a) PAN card
b) Passport photo
c) Land registry
d) Proof of identity
Answer: c) Land registry

Q70. What should a BC/F do when a customer has an expired ID document?

a) Accept it anyway
b) Refuse account without reason
c) Ask for updated valid ID
d) Keep the document and proceed
Answer: c) Ask for updated valid ID

Q71. What is one of the challenges in reaching rural customers?

a) Mobile overuse
b) Awareness and infrastructure gaps
c) Too many banks
d) Rapid ATM access
Answer: b) Awareness and infrastructure gaps

Q72. Which format is most used in customer feedback tracking?

a) Social media post
b) Monthly diary
c) Customer Interaction Log
d) Performance slideshow
Answer: c) Customer Interaction Log
Q73. Which of the following requires KYC for service activation?
a) Electricity
b) Demat Account
c) Social Media
d) Newspapers
Answer: b) Demat Account

Q74. What is the right action when a suspicious transaction occurs?

a) Ignore it
b) Cancel the account
c) Inform compliance team and report
d) Congratulate customer
Answer: c) Inform compliance team and report

Q75. In a remote village, how can BCs improve financial inclusion?

a) Set up branches
b) Offer investment tips
c) Conduct door-to-door awareness and services
d) Open malls
Answer: c) Conduct door-to-door awareness and services

Q76. Which of these is NOT part of RFM segmentation?

a) Recency
b) Frequency
c) Mobility
d) Monetary
Answer: c) Mobility

Q77. What defines solvency risk?

a) Inability to withdraw cash
b) Risk of insufficient capital to absorb losses
c) Failure to meet ATM complaints
d) Lack of electricity in branch
Answer: b) Risk of insufficient capital to absorb losses

Q78. Which role requires KYC even for low-value accounts?

a) Joint Account Holder
b) Business Correspondent
c) Bank Manager only
 d) Marketing Agent
Answer: b) Business Correspondent

Q79. What is the meaning of ‘tailored product’?

a) High-cost service
b) Random financial product
c) A product customized for a customer's need
d) General investment plan
Answer: c) A product customized for a customer's need

Q80. Which report is essential for identifying fraud?

a) Sales report
b) Compliance report
c) Welcome letter
d) Portfolio summary
Answer: b) Compliance report

Q81. What is a BC/F supposed to do if a customer forgets to bring PAN card?

a) Proceed anyway
b) Cancel application
c) Ask for alternate valid identity document
d) Demand fees
Answer: c) Ask for alternate valid identity document

Q82. What kind of training should BC/Fs undergo?

a) Agricultural training
b) Personal grooming
c) Financial literacy, compliance, and ethics
d) Plumbing certification
Answer: c) Financial literacy, compliance, and ethics

Q83. One key benefit of Performance Reports is:

a) Social reputation
b) Legal proof
c) Tracking goals and areas of improvement
d) Advertisement use
Answer: c) Tracking goals and areas of improvement
Q84. Which format is used to track customer's historical issues?
a) Interview Sheet
b) CRM Poster
c) Customer Interaction Log
d) Branch Diary
Answer: c) Customer Interaction Log

Q85. Who is responsible for maintaining accurate customer records?

a) Regional manager only
b) BC/F
c) Police
d) Call centre
Answer: b) BC/F

Q86. Why must BC/F avoid personal involvement in cash handling outside limits?
a) Saves time
b) Legal and risk concerns
c) Impresses customers
d) Boosts sales
Answer: b) Legal and risk concerns

Q87. What does digital onboarding refer to?

a) Giving printed books
b) Online KYC and account setup
c) Cheque verification
d) ATM reissue
Answer: b) Online KYC and account setup

Q88. Behavioral segmentation depends on:

a) Location
b) Transaction frequency and habits
c) Age group
d) Religion
Answer: b) Transaction frequency and habits

Q89. Demat account is mainly used for:

a) Mutual fund deposits
b) Currency exchange
c) Electronic share trading
 d) Loan approvals
Answer: c) Electronic share trading

Q90. An expired ID submitted by a customer must be:

a) Approved silently
b) Rejected with explanation
c) Sent to manager
d) Thrown away
Answer: b) Rejected with explanation

Q91. What is one effective way of improving customer trust?

a) Avoiding questions
b) Promising returns
c) Transparency and ethical practice
d) Hiding charges
Answer: c) Transparency and ethical practice

Q92. When must a compliance report be submitted?

a) Weekly only
b) Monthly
c) As per regulatory and institutional requirement
d) Never
Answer: c) As per regulatory and institutional requirement

Q93. A nominee is:

a) Legal advisor
b) Branch head
c) Person who receives account funds in death of holder
d) Auditor
Answer: c) Person who receives account funds in death of holder

Q94. What is included in application kits handed to customers?

a) Snacks
b) Complaint forms
c) Account terms, forms, and KYC checklist
d) Discount coupons
Answer: c) Account terms, forms, and KYC checklist
Q95. Best mode to reach digitally active customers:
a) Posters
b) Newspaper
c) WhatsApp, Email, SMS
d) Megaphone
Answer: c) WhatsApp, Email, SMS

Q96. The daily work of BCs must be recorded in:

a) Sales Board
b) Google Docs
c) Daily Transaction Report
d) Cash Register
Answer: c) Daily Transaction Report

Q97. Which account is best suited for senior citizens?

a) Demat
b) NRI Account
c) Savings with pension benefits
d) Fixed deposits only
Answer: c) Savings with pension benefits

Q98. What is the term for mapping customer needs to suitable products?
a) Forced sale
b) Tailoring
c) Need-based matching
d) Random suggestion
Answer: c) Need-based matching

Q99. Ethical behavior by BCs helps in:

a) Higher profits
b) Regulatory breach
c) Building long-term customer trust
d) Increasing paperwork
Answer: c) Building long-term customer trust

Q100. What is the impact of incorrect customer data?

a) Faster service
b) Wrong financial services offered
c) More customer loyalty
 d) Better marketing
Answer: b) Wrong financial services offered

Q101. What is the primary tool used for escalation of unresolved customer issues?
a) Customer Ledger
b) Escalation Matrix
c) Bank Passbook
d) Customer Register
Answer: b) Escalation Matrix

Q102. Which of the following is a part of administrative tasks of BC/F?

a) Preparing marketing jingles
b) Managing official reports and customer logs
c) Auditing other banks
d) Filing income tax
Answer: b) Managing official reports and customer logs

Q103. Financial literacy aims to:

a) Promote movies
b) Educate customers about money management
c) Teach grammar
d) Sell mobile phones
Answer: b) Educate customers about money management

Q104. What is required for mobile banking registration?

a) Birth certificate
b) Mobile number and ID proof
c) Gas bill
d) School mark sheet
Answer: b) Mobile number and ID proof

Q105. Which account does NOT require regular deposits?

a) Recurring Deposit
b) Fixed Deposit
c) Monthly SIP
d) Piggy Bank
Answer: b) Fixed Deposit
Q106. Document verification is important to:
a) Confuse the customer
b) Prevent unauthorized access and fraud
c) Speed up sales
d) Print more forms
Answer: b) Prevent unauthorized access and fraud

Q107. What is the meaning of financial ecosystem?

a) Group of stock traders
b) A network of financial institutions and services
c) ATM booth network only
d) Banking environment in forests
Answer: b) A network of financial institutions and services

Q108. Which product is most suitable for customers with surplus monthly income?
a) Current Account
b) Fixed Deposit
c) Overdraft
d) Safe Deposit
Answer: b) Fixed Deposit

Q109. A BC/F must maintain which ethical practice?

a) Sharing customer data
b) Receiving commission directly in cash
c) Confidentiality and transparency
d) Avoiding feedback
Answer: c) Confidentiality and transparency

Q110. What does a Transaction Monitoring System track?

a) ATM card printing
b) Suspicious or unusual financial activities
c) Bank furniture
d) Office attendance
Answer: b) Suspicious or unusual financial activities

Q111. Who can operate BC/F services under supervision?

a) Random citizens
b) Grocery shop owners (with RBI-approved background check)
c) Unemployed persons
 d) Only government employees
Answer: b) Grocery shop owners (with RBI-approved background check)

Q112. What is the most common reporting hierarchy for a BC/F?

a) Local MLA
b) Bank Branch Manager
c) Postmaster
d) ATM Vendor
Answer: b) Bank Branch Manager

Q113. A customer from a flood-prone area may face:

a) Market risk
b) Environmental compliance
c) Geographical accessibility challenge
d) Equipment obsolescence
Answer: c) Geographical accessibility challenge

Q114. A BC/F helps in which of the following key areas?

a) Political campaigning
b) Managing schools
c) Extending banking reach
d) Transport planning
Answer: c) Extending banking reach

Q115. The format used to record daily banking tasks by BC/F is:
a) Work Diary
b) Customer Calendar
c) Daily Transaction Report
d) Wallet Log
Answer: c) Daily Transaction Report

Q116. Which of the following is not a function of BC/F?

a) Document Verification
b) ATM Maintenance
c) Financial Literacy
d) Transaction Assistance
Answer: b) ATM Maintenance
Q117. A Demat account is used for:
a) Fixed deposits
b) Mutual fund SIPs
c) Holding securities electronically
d) Cash deposits
Answer: c) Holding securities electronically

Q118. When a customer applies for a loan, BC/F must:

a) Approve the loan
b) Ignore the request
c) Assist in form filling and document collection
d) Reject all loan forms
Answer: c) Assist in form filling and document collection

Q119. Which tool helps in long-term tracking of BC/F performance?

a) Loan Approval Sheet
b) Customer Passbook
c) Monthly Performance Report
d) Code of Ethics Manual
Answer: c) Monthly Performance Report

Q120. What is the minimum requirement for savings account KYC?

a) Rent agreement
b) PAN + Address Proof + Photo ID
c) Voter card only
d) Driving license
Answer: b) PAN + Address Proof + Photo ID

Q121. When is a nominee’s information needed?

a) For loans only
b) During insurance application
c) At account opening or update
d) After customer’s death
Answer: c) At account opening or update

Q122. Financial inclusion bridges the gap between:

a) City and village maps
b) Rich and poor
c) Tech users and non-users
 d) Banked and unbanked populations
Answer: d) Banked and unbanked populations

Q123. What is RFM used for?

a) Analyze customer profitability
b) Generate electricity
c) Print passbooks
d) Monitor salary
Answer: a) Analyze customer profitability

Q124. Customer privacy must be ensured through:

a) Data leaks
b) Sharing with vendors
c) Secured IT systems and strict access
d) Verbal confirmation
Answer: c) Secured IT systems and strict access

Q125. Which one is a key benefit of psychographic segmentation?

a) Tailored financial offerings based on values and lifestyle
b) Cheaper products
c) Standard service to all
d) Random offers
Answer: a) Tailored financial offerings based on values and lifestyle

Q126. In escalation procedures, unresolved issues are sent to:

a) Customers again
b) RBI
c) Higher banking authority or supervisor
d) Call center
Answer: c) Higher banking authority or supervisor

Q127. What happens when KYC is not done correctly?

a) Free account opening
b) Regulatory penalties and fraud risks
c) Customer appreciation
d) Loan waiver
Answer: b) Regulatory penalties and fraud risks
Q128. What type of document is an Electricity Bill?
a) ID proof
b) Financial instrument
c) Address proof
d) PAN alternative
Answer: c) Address proof

Q129. Which account is best suited for regular business transactions?

a) Demat Account
b) NRI Account
c) Current Account
d) Recurring Deposit
Answer: c) Current Account

Q130. When does TDS apply on deposits?

a) No interest
b) Fixed Deposit earnings beyond threshold
c) Daily savings
d) Mobile recharges
Answer: b) Fixed Deposit earnings beyond threshold

Q131. BC/F is expected to work:

a) Outside the banking system
b) Inside the branch
c) On behalf of bank in remote areas
d) As auditor
Answer: c) On behalf of bank in remote areas

Q132. What is the role of KYC in fraud prevention?

a) Delays service
b) Identifies customers
c) Reduces compliance
d) Speeds up rejection
Answer: b) Identifies customers

Q133. Creditworthiness is verified using:

a) Facial recognition
b) Social media posts
c) Credit history and documents
 d) Horoscope
Answer: c) Credit history and documents

Q134. A good BC/F ensures customer:

a) Confusion
b) Frustration
c) Satisfaction and trust
d) Anger
Answer: c) Satisfaction and trust

Q135. What is the benefit of financial counselling by BC/F?

a) Adds paperwork
b) Increases misunderstandings
c) Helps in better money decisions
d) Prevents bank visits
Answer: c) Helps in better money decisions

Q136. Which of these is NOT a customer segment?

a) Demographic
b) Botanical
c) Behavioral
d) Geographic
Answer: b) Botanical

Q137. Customer financial planning should be:

a) One-size-fits-all
b) Ignored
c) Personalized and need-based
d) Delayed
Answer: c) Personalized and need-based

Q138. Which report deals with customer issues and feedback?

a) Financial Statement
b) Monthly Planner
c) Customer Interaction Log
d) Sales chart
Answer: c) Customer Interaction Log
Q139. What is ‘nomination’ in banking?
a) A prize
b) A complaint form
c) Assigning someone to receive funds on death of account holder
d) ATM PIN
Answer: c) Assigning someone to receive funds on death of account holder

Q140. Which document is compulsory for opening a Demat Account?

a) Voter ID
b) PAN Card
c) Driving License
d) Gas Bill
Answer: b) PAN Card

Q141. What is psychographic segmentation based on?

a) Age and gender
b) Income level
c) Lifestyle and values
d) Region
Answer: c) Lifestyle and values

Q142. In financial inclusion, what is meant by “last-mile connectivity”?

a) Transporting goods to remote places
b) Providing internet in villages
c) Delivering banking services to remote customers
d) Installing ATM machines in urban areas
Answer: c) Delivering banking services to remote customers

Q143. A nominee in a bank account is:

a) Joint holder
b) Person to receive funds if account holder dies
c) Bank manager
d) Witness
Answer: b) Person to receive funds if account holder dies

Q144. PAN card is compulsory for:

a) Electricity bill payment
b) Education loan
c) Demat account opening
d) Mobile recharge
Answer: c) Demat account opening

Q145. BCs are appointed primarily to:

a) Reduce customer visits
b) Sell luxury products
c) Provide banking services in underbanked areas
 d) Conduct bank audits
Answer: c) Provide banking services in underbanked areas

Q146. Which is an example of behavioral segmentation?

a) Using mobile apps for transactions
b) Residing in a city
c) Age over 60
d) Owning a car
Answer: a) Using mobile apps for transactions

Q147. AML compliance is mandatory for:

a) All branches only
b) Only HNIs
c) All customer transactions
d) Retail shops
Answer: c) All customer transactions

Q148. What is included in customer due diligence?

a) Personal preferences
b) Signature verification only
c) Identity and address verification
d) Purchase history
Answer: c) Identity and address verification

Q149. What does FATF stand for?

a) Financial Action Task Force
b) Federal Account Transfer Fund
c) Financial Approval Task Forum
d) Fixed Asset Trust Fund
Answer: a) Financial Action Task Force

Q150. A recurring deposit account requires:

a) One-time lump sum payment
b) Monthly fixed deposits
c) Credit card
d) Loan approval
Answer: b) Monthly fixed deposits

Q151. What is the function of a Monthly Performance Report for BCs?

a) Reward customers
b) Track electricity usage
c) Measure BC productivity
d) Print cheques
Answer: c) Measure BC productivity

Q152. Which of the following is not a risk associated with banking?

a) Credit Risk
b) Liquidity Risk
c) Operational Risk
d) Cooking Risk
Answer: d) Cooking Risk

Q153. The KYC process is completed during:

a) Transaction
b) Account closure
c) Account opening
d) ATM recharge
Answer: c) Account opening

Q154. What type of account can an illiterate person open?

a) NRI account
b) Demat account
c) Basic savings bank deposit account
d) Credit card account
Answer: c) Basic savings bank deposit account

Q155. Which document is acceptable as both identity and address proof?

a) PAN card
b) Passport
c) Ration card
d) School ID
Answer: b) Passport

Q156. BC/F must never:

a) Guide customer
b) Promote financial literacy
c) Share customer credentials
d) Help fill forms
Answer: c) Share customer credentials

Q157. Which report shows the number of customers served daily?

a) Marketing Report
b) Daily Transaction Report
c) Annual Balance Sheet
d) Audit Note
Answer: b) Daily Transaction Report

Q158. What does customer segmentation help with?

a) Creating new branches
b) Better targeted financial products
c) Auditing banks
d) Printing documents
Answer: b) Better targeted financial products

Q159. The BC model mainly promotes:

a) Digital art
b) Financial exclusion
c) Financial inclusion
d) Luxury shopping
Answer: c) Financial inclusion

Q160. A minor can open a savings account with:

a) Friend’s help
b) No proof
c) Guardian
d) Police permission
Answer: c) Guardian

Q161. RFM segmentation does NOT include:

a) Recency
b) Frequency
c) Mortality
d) Monetary
Answer: c) Mortality

Q162. A credit risk arises when:

a) The branch is flooded
b) Customer fails to repay
c) Aadhar is not linked
d) Cheque is encashed
Answer: b) Customer fails to repay

Q163. Which customer is likely in a high-risk category?

a) Verified salaried individual
b) Politically exposed person (PEP)
c) Retired government employee
d) Student with college ID
Answer: b) Politically exposed person (PEP)
Q164. Which banking channel involves face-to-face interaction?
a) ATM
b) Mobile app
c) Branch banking
d) IVR
Answer: c) Branch banking

Q165. How often should BCs update transaction logs?

a) Weekly
b) Monthly
c) Daily
d) Yearly
Answer: c) Daily

Q166. What is the best approach for resolving a customer complaint?

a) Ignore it
b) Escalate immediately
c) Listen and act promptly
d) Say “Not my job”
Answer: c) Listen and act promptly

Q167. What is the primary risk if BC doesn’t follow KYC norms?

a) Increased sales
b) Reduced forms
c) Fraud and legal action
d) Better image
Answer: c) Fraud and legal action

Q168. What is the nature of a recurring deposit account?

a) Irregular deposit
b) Lump sum deposit
c) Fixed monthly deposit
d) ATM-only account
Answer: c) Fixed monthly deposit

Q169. Which of these is most relevant for financial literacy?

a) Cricket tips
b) Budget planning
c) Political survey
d) Movie offers
Answer: b) Budget planning

Q170. A demat account is linked with:

a) Mutual fund tracking
b) Share trading
c) SMS alerts
d) Mobile recharge
Answer: b) Share trading

Q171. Segmentation helps in offering:

a) Same product to all
b) Relevant products to specific groups
c) Discounts only
d) Account closure
Answer: b) Relevant products to specific groups

Q172. BC/Fs should maintain:

a) Casual attitude
b) Records of all customer interactions
c) Posters of celebrities
d) Lockers
Answer: b) Records of all customer interactions

Q173. Who can be appointed as a BC?

a) Loan defaulter
b) A person with good standing and no record of default
c) Minor
d) Unsalaried person without documents
Answer: b) A person with good standing and no record of default

Q174. Which is NOT a financial product?

a) Fixed Deposit
b) Recurring Deposit
c) Pancard
d) Savings Account
Answer: c) Pancard
Q175. A credit score shows:
a) Customer’s age
b) Loan eligibility
c) PAN number
d) Bank’s profits
Answer: b) Loan eligibility

Q176. Which one is an unethical practice?

a) Helping customer open account
b) Providing correct info
c) Hiding service charges
d) Verifying documents
Answer: c) Hiding service charges

Q177. What should BCs do when a new RBI circular is issued?

a) Ignore it
b) Read, understand and comply
c) Delete it
d) Forward without reading
Answer: b) Read, understand and comply

Q178. Which product is best suited for short-term savings?

a) Fixed Deposit (5 years)
b) Recurring Deposit (6 months)
c) Loan
d) Demat
Answer: b) Recurring Deposit (6 months)

Q179. Which tool is used to assess whether a customer is eligible for a credit card?
a) Horoscope
b) Sales sheet
c) Income and credit history
d) Aadhar
Answer: c) Income and credit history

Q180. BC/F acts as a bridge between:

a) Government and police
b) Customer and insurance
c) Customer and bank
d) Loan and gold
Answer: c) Customer and bank

Q181. What is the key component of ethical selling?

a) Misleading customer
b) Disguising charges
c) Transparency
d) Silence
Answer: c) Transparency

Q182. What makes a customer high-risk?

a) Verified ID
b) Unusual transactions without explanation
c) Regular salary credit
d) Opening savings account
Answer: b) Unusual transactions without explanation

Q183. Who should verify KYC documents?

a) Postman
b) Newspaper agent
c) BC/F or bank official
d) Police
Answer: c) BC/F or bank official

Q184. BC/Fs are part of which initiative?

a) Swachh Bharat
b) Financial Inclusion
c) Beti Bachao
d) RTI
Answer: b) Financial Inclusion

Q185. A nominee in an account helps with:

a) Issuing ATM
b) Loans
c) Receiving funds in case of account holder’s death
d) Mutual fund returns
Answer: c) Receiving funds in case of account holder’s death
Q186. Which report tracks BC’s daily activity?
a) Wallet Sheet
b) Daily Transaction Report
c) Monthly Goal Sheet
d) FD Register
Answer: b) Daily Transaction Report

Q187. What is the full form of OTP?

a) Online Transfer Payment
b) One-Time Password
c) Over Time Payment
d) Option to Proceed
Answer: b) One-Time Password

Q188. Which one is a valid identity proof?

a) Electricity Bill
b) Aadhar Card
c) Credit Card Statement
d) Ration Slip
Answer: b) Aadhar Card

Q189. RFM helps banks:

a) Analyze customer behavior
b) Fix ATM machines
c) Audit branches
d) Clean bank data
Answer: a) Analyze customer behavior

Q190. BC/Fs should never promise:

a) Free account
b) Guaranteed returns without proper information
c) Loan guidance
d) Help with forms
Answer: b) Guaranteed returns without proper information

Q191. One key responsibility of a BC/F is:

a) Accepting bribes
b) Misguiding customers
c) Promoting safe banking
d) Approving new branches
Answer: c) Promoting safe banking

Q192. Which of the following is an example of safe banking practice?

a) Sharing OTP
b) Ignoring passwords
c) Never sharing passwords
d) Leaving passbook in public
Answer: c) Never sharing passwords

Q193. Financial planning includes:

a) Movie planning
b) Budgeting, saving, investing
c) Cooking food
d) Travelling
Answer: b) Budgeting, saving, investing

Q194. BCs are usually monitored by:

a) Newspaper reporters
b) RBI agents directly
c) Bank branch staff
d) Local shopkeepers
Answer: c) Bank branch staff

Q195. Which customer segment would most likely buy education loan products?
a) Senior citizens
b) Students
c) NRIs
d) Farmers
Answer: b) Students

Q196. Financial literacy improves:

a) Cooking skills
b) Awareness about financial products
c) Sports skills
d) Shopping discounts
Answer: b) Awareness about financial products
Q197. What is a compliance checklist used for?
a) Birthday reminders
b) Checking documentation and process adherence
c) Tracking food bills
d) ATM card status
Answer: b) Checking documentation and process adherence

Q198. Cross-selling involves:

a) Closing old accounts
b) Selling unrelated items
c) Offering additional financial products to existing customers
d) Sharing customer data
Answer: c) Offering additional financial products to existing customers

Q199. Who is responsible for financial misrepresentation by a BC/F?

a) Customer
b) Media
c) BC/F themselves
d) NGO
Answer: c) BC/F themselves

Q200. In case of serious misconduct, a BC/F may face:

a) Promotion
b) Suspension or legal action
c) Gift voucher
d) Extra leave
Answer: b) Suspension or legal action