19.

RECALLED QUESTIONS (2016-18)

( IBPS DIFFERENT BANKS PROMOTION TEST )

1. Mutual Funds are controlled by: SEBI.

2. Duplicate DD should be issued within: 14 days from date of request.
3. Public Debt Office (PDO) is an ______: Autonomous body and Investment Banker to Central Govt.
4. What is the rate of TDS in case of Savings Bank deposit account as per Income Tax Act Section 80TTA : TDS is
not applicable in savings bank interest.
5. What is the rate of TDS in case the customer does not submit PAN card and 15G/ 15H : @ 20%.
6. Complaints under Consumer forum should be dealt with within (Where no testing of commodities is required) : 90
days

7. Locker Operation to be categorised under High and Low risk. In case of non-operation of such accounts for ____
and ______: 1 year and 3 years respectively.
8. Maximum deposit for allotting a locker: 3 year advance rent plus locker breaking charges.
9. Minimum subscription in PPF cannot be less than: Rs.500/-.
10. The single portal initiated by Ministry of Corporate Affairs for one stop solution for all Companies: MCA21.
11. The RBI is using _____ index of inflation for policy making: Consumer Price Index.
12. BCSBI is affiliated or regulated by? An independent body.
13. Certificate of Incorporation is: Not required in case of Pvt Ltd Co’s.
14. What is full form of IFRS: International Financial Reporting Standards.
15. General Insurance works on principle of: Spread of Risk.
16. Contract of Insurance is a contract of: Indemnity.
17. FIR to be filed if number of Counterfeit notes in a single deposit is: 5 or above.
18. The RBI recently proposed to float wholesale and long – term finance (WLTF) banks and for the minimum capital
required for them would be: Rs. 1,000 cr
19. The malicious cyber attack that infects a computer and restricts users’ access to it until a ransom is paid to unlock
it: Ransomware
20. The worldwide cyber attack which targeted computers running the older version of Microsoft Windows operating
system by encrypting data and demanding ransom payments in the Bitcoin crypto currency: Wannacry
Ransomware Attack
21. The group that posted online digital tools stolen from the United States governments stockpile of hacking weapons:
“Shadow Brokers”
22. In Income Declaration Scheme there is an extension of Deadline for payment from Nov. 30, 2016 to _____. Sept
30, 2017.
23. The Bank Boards Bureau (BBB) has evolved GRAF for public sector banks to ensure that they have the ability to
compete with other banks. The term GRAF stands for: Goverance, Reward and Accountability Framework
24. Expand the term ‘SAMPADA’? Scheme for Agro- Marine Produce Processing and Development of Agro-processing
Clusters.
25. Money allocated by the government for SAMPADA scheme: Rs. 6000 crore
26. The committee constituted by the Insolvency and Bankruptcy Board of India (IBBI) to lay down technical standards
for performance of core services: R B Barman committee
27. Which bank has launched a unique credit card ‘Unnati’ for which any customer with a balance of a least Rs.25,000
in his savings account with the bank would be eligible: SBI
28. The new base year for calculation of Index of Industrial Production (IIP) & Wholesale Price Index (WPI) will be
_____while it was 2004-05 earlier. (2011-12)
29. The number of items in the new IIP (Index for Industrial Production) are _______as compared to 620 items
earlier. (809)
30. India’s Sovereign rating given by FITCH is ____which means the lowest investment grade rating : BBB.
31. Fiscal Responsibility and Budget Management (FRBM) Panel has recommended a Fiscal Deficit target at 2.5% and
Revenue deficit target at ____ for 6 years: 0.8%.
32. The limit set on taxing of high sea trade in India is ___ nautical miles into territorial waters: 12
RISK MANAGEMNET
1. Minimum total capital + CCB up to 31.03.2019: 11.50%
2. Revaluation reserve can be included in Tier-I capital to the extent of: 45% of its value.
3. Bank's will be monitored on excessive leverage build up leverage ratio of: 4.5%
4. By 31 March 2019, the Basel capital + counter cyclical buffer will stand at: 11.5% of RWA (9% + 2.5% for CCB)
5. What is the exposure ceiling fixed by RBI for IBU’s( IFSC’s Banking Units)? (Single Borrowers: 5% of the
parent bank’s Tier 1 capital and for group borrowers: 10%)
6. Which of the following does not come under Tier II capital? a) Capital reserves b) Undisclosed reserves c)
Revaluation reserves d) Cumulative Perpetual shares: Capital Reserves.
7. Leverage ratio as per Basel-3 = 3 %
8. What is the date for final implementation of Basel III? 31.03.2019 & Start date is 01.04.2013
9. Rating of Bank is carried by RBI on CAMELS criteria, what do “C” stands for? Capital Adequacy.
10. Under the Risk Based Audit, what is the maximum aggregates scoring given: 1000.
11. Under the Risk Based Audit which parameter is given the highest scoring: Credit Management
12. Which of the following does not come under Tier II capital? Capital reserves / Undisclosed reserves /
Revaluation reserves / Non cumulative perpetual shares: Capital Reserves.
13. Which of the following is not part of Operational risk? Fraud / Documentation failure / failure of systems / none:
None.
14. Full form of ICAAP: Internal Capital Adequacy Assessment Process
15. Which of the following does not come under Tier II capital? a) Capital reserves b) Undisclosed reserves c)
Revaluation reserves d) Cumulative Perpetual shares: Capital Reserves.
16. What is the risk weight in case of Staff loan secured by mortgage or superannuation benefits: 20%
17. Risk weight in advances backed by State Govt guarantee: 20%
18. Liquidity provided under 7 day and 14 day term repos is: 0.75% of NDTL.

DIGITAL BANKING & TECHNOLOGY

1. A Proxy server is used for: To provide security against unauthorized users.
2. What is Phising: To steal the customers personal / confidential data like Bank a/c number, Credit Card
Number, PIN or Password over internet & access their accounts.
3. Full form of USSD: Unstructured Supplementary Service Data.
4. Maximum RTGS Charge for Rs.2 lac to 5 lac: Rs. Rs. 30.00 + service tax.
5. What is the minimum amount which can be remitted under RTGS by a customer: Minimum Rs. 2 lac and no
Maximum.
6. In case of failed ATM transaction customer’s account should be credited within how many days of the
complaint?: 7 working days.
7. AEPS stands for : Aadhar Enabled Payment System.
8. CPPC stands for : Central Pension Processing Cell.
9. IBPP stands for : Internet Bill Presentation & Payment.
10. Rupay Platform refers to: National Payments Corporation of India (NPCI) initiated the launch of RuPay
card in India. It was done with the intention of integration of payment systems in the country. It
has led to lower transaction cost as processing is being done within country. Also, transactions will
be faster.
10a.Full form of CVV: Customer Verification Value
11. Full form of NUUP: National Unified USSD Platform.
12. Full form of IMEI: International Mobile Equipment Identity.
13. Full form of NPCI: National Payment Corporation of India.
14. Full form of CVD: Customer Verification Data.
15. Universal set of standards and guidelines for communication by EDI is called: EDIFACT.
16. Full form of ISDN: Integrated Services Digital Network.
17. RTGS amount limit for customers: Min Rs.2 lac and no max
18. Which bank has max share in INFINO PAYTECH Ltd : ICICI Bank
19. NEFT maximum amount: no limit
20. Computer Security Day is observed on : 30th November
21. Maximum compensation by Banking Ombudsman in case of Credit Card : Rs.1 lac
22. Encryption means: Conversion of plain language into secret language, i.e., coding and The extent of coverage
under
23. E-sahyog portal: by Income Tax
24. Maximum RTGS Charge for Rs.2 lac to 5 lac: Rs.30.00 + service tax
25. What is the maximum amount of fees chargeable if more than 5 transactions are done in a month at other bank’s
ATM: Rs 20 per transaction
26. Application under ASBA can be applied for: a) IPO b) Right Issue c) Mutual fund: Ans: All of these.
27. Name the portal that has been launched by the Confederation of All India Traders (CAIT) to promote business-
to-business and trader-to-customer e-commerce transactions and reduce costs. (E-Lala)
28. Name India’s first Social mobile wallet launched by Transerv, a leading digital payments company. (Udio)
29. Name the programme launched by online market place BankBazaar.com to help the flood affected citizens of
Chennai. (‘One Loan Two Homes’)
30. Buy Now, Pay Later what type of card: Credit Card
31. What is Phising: To steal the customers personal / confidential data like Bank a/c number, Credit Card
Number, PIN or Password over internet & access their accounts.
32. What is the IDL (Intra Day Liquidity) time for reversal of RTGS: 19.45 To 20
33. Charges in RTGS for an amount of up to Rs.5 lac: Not exceeding Rs.30 and Rs.55 above Rs.5 lac
Compiled by Sanjay Kumar Trivedy, Chief Manager, Canara Bank,Shrigonda, Ahmednagar, Maharashtra 1 | P a g e
 (including time varying tariff).
34. IMEI: International Mobile Equipment Identity.
35. NPCI: National Payment Corporation Of India.
36. Rupay Platform refers to: National Payments Corporation of India has launched RuPay card with the intention of
integration of payment systems in the country. It has led to lower transaction cost as processing is being done
within country
PRIORITY SECTOR - GENERAL
1. A housing loan in metro area will be classified as Priority Sector, provided maximum amount of loan is up to ___
and maximum cost of house is up to: Rs. 28 lac; Rs 35 lac.
2. In case of House loan where loan amount is above Rs. 75 lac, Loan to value is 75% the risk weight is _____: 75
%.
3. What is the risk weight in case of Staff loan secured by mortgage or superannuation benefits: 20%
4. As per LTV guidelines, what is the risk weight for housing loan up to 30 lakhs with LTV of 75%: 35%
5. As per the moratorium guidelines, the repayment of education loan should start from: 12 months on completion
of course or 6 months after getting job, whichever is earlier.
6. Maximum finance for repair and renovation of house in metro under priority sector: Rs. 5 lac
7. What should be annual income of a BPL family to be eligible for getting interest subvention under educational
loan? Rs 4.50 lac.
8. Loans to individuals for educational purpose India for how much amt will be under priority sector: Rs.10 lacs for
inland studies & abroad.
9. How much Education loan is allowed for vocational purpose in India?: For course duration upto 3 months
Rs. 20,000/-; for 3 to 6 months – Rs. 50,000; 6 months to 1 year- Rs. 75,000 & Above one year- Rs.
1.5 lac.
10. What is the target in DRI scheme for women: No Target for women.
11. Business correspondent is: Agent of Banker.
12. Priority Sector : Maximum loan in Social Infrastructure : Rs.5 crore
13. Priority Sector : Maximum loan in Renewable Energy : Rs.15 crore
14. Provision on Commercial Real Estate in Residential Housing: 0.75% of outstanding
15. What is the target for weaker sections as part of PS?: 10% of ANBC or CEOBE whichever is lower.
16. Target of RRB Has been revised for priority sector and the revised target is 75%.what was the earlier target of
RRB for priority sector?: 60% of total advances
17. Loans to individual whose income is less than 1.00 lac in rural area up to what limit comes under priority sector:
Rs. 50,000
18. Target of RRB has been revised for priority sector and the revised target is 75%. What was the earlier target of
RRB for priority sector?: 60% of total advances
19. Loan review mechanism is done for the loans Rs.______ & above: Rs. 10 Cr & above.
20. What is the maximum amount of finance under Shishu category of MUDRA: Rs. 50,000.
21. Weaker section Target as per Priority Sector guidelines: 10% of ANBC or CEOBE whichever is higher. In
terms of total Priority sector it is 25%.
22. Rajeev Rinn Yojana how much maximum loan w/o collateral security: EWS- 5 lacs; LIG- 8 lacs.
23. Under Priority sector, maximum loan for Renewable Energy: Rs. 15 crore.
24. Shortfall in PS advance target, amount to be deposited in: RIDF or invested in Priority Sector Lending
Certificates.
25. A housing loan in metro area will be classified as Priority Sector, provided maximum amount of loan is up to ___
and maximum cost of house is up to: Rs. 28 lac; Rs 35 lac.
26. Maximum loan for Social Infrastructure under Priority Sector: Rs. 5 cr.
27. What is the maximum amount of loan under IBA educational loan scheme for Vocational courses? Rs.150,000
for courses with duration above 1 year.
28. What should be annual income of a BPL family to be eligible for getting interest subvention under Educational
loan? Rs 4.50 lac.
29. Loans to individuals for educational purpose India for how much amt will be under Priority Sector: Rs.10 lacs for
inland studies & abroad.
AGRICULTURE
1. Blue revolution refer to: Fish breeding.
2. When a farmer in addition to agriculture is engaged in rearing of farm stock, it is called: Mixed farming.
3. Debt Swap meaning: To extend finance to farmers for repayment of loan taken from non-
institution lenders.
4. Shortfall in PS advance target, amount to be deposited in: RIDF.
5. Long duration crop means a crop with harvest season of: More than 12 months.

Compiled by Sanjay Kumar Trivedy, Chief Manager, Canara Bank,Shrigonda, Ahmednagar, Maharashtra 2 | P a g e
6. What is the premium in case of PMFSY : 1.5% Rabi 2% Kharif. 5% for commercial and horticulture
crop.
7. Food & Processing Industry up to what amount can be given under priority sector: Rs. 100 crores.
8. No dues Certificate in agriculture finance: not required
9. In case of KCC, no interest subvention is available if loan is: overdue. Available for short duration loans up to 1
year. Not available in respect of overdue loans.
10. What is the target for financing of agriculture?: 18% of ANBC or CEOBE whichever is higher.
11. What is the rate of interest subvention in crop loans up to Rs 3 lac?: 2%
12. Loan to Agri Clinic and agri business centre is classified as: Ancillary activities as part of Agriculture.
13. In case of KCC, no interest subvention is available if loan is: overdue. Available for short duration loans up to 1
year. Not available in respect of overdue loans.
14. In Kisan Credit Card Scheme, to calculate the limit for 5 years, the cost escalation is to be built in, for assessing
the limit for a subsequent year at: 10% of previous year limit.
15. Max amount of crop loan under KCC for claiming Interest subvention: Rs. 3 lac.
16. Under interest subvention scheme, farmers are given some additional concession for prompt repayment. What is
the percentage of additional interest subvention: 3% and net interest to borrower is 4%
17. Loans to farmer against pledge / hyp of agriculture produce ( post harvest marketing scheme ): Rs.50 lakh for a
period of 12 months.
18. What is the maximum loan amount permitted under KCC?: No upper limit. It is at the discretion of the
bank.
19. A loan up to Rs 50,000 will be covered under Priority Sector Others provided Annual Household income for non
rural borrower does not exceed: Rs.1,60,000/-
20. Under Agri Clinic scheme the maximum loan limit for individual is: 20 lac. And group 100Lac.
21. When a farmer in addition to agriculture is engaged in rearing of farm stock, it is called: Mixed farming.
22. Limit sanctioned to Food Processing and Allied Activities upto ___will be eligible for priority sector: Rs 100 crore
from banking system.
23. What is the target for financing of agriculture?: 18% of ANBC or CEOBE whichever is higher.
24. What is the rate of interest subvention in crop loans up to Rs 3 lac?: 2%
25. Post harvest loan against Pledge / Hypothecation of crop produce is provided upto Rs. _______ and for ____
months: Loan upto Rs. 50.00 lac period not extending 12 months.
26. When a farmer in addition to agriculture is engaged in rearing of farm stock, it is called: Mixed farming.
27. Debt Swap meaning: To extend finance to farmers for repayment of loan taken from non-institution
lenders.
28. Long duration crop means a crop with harvest season of: More than 12 months.
29. What is the premium in case of PMFBY: 1.5% on Rabi and 2% on Kharif.
30. Debt securitization company means: conversion of receivables into debt instrument.
31. Loans to farmer against pledge / hyp of agriculture produce ( post harvest marketing scheme ): Rs.50 lakh for a
period of 12 months.
GOVT. SPONSERED AND FINANCIAL INCLUSION
1. What will be the rate of interest and tenure for gold bonds? (2.5%, 8 yrs)
2. The balance in Small SB A/c at any point should not exceed: Rs. 50000/
3. What is initiative of Government to provide banking services to BPL people? Financial Inclusion.
4. APY belongs to: Un organized sector
5. Income Criteria in PMEGP: No ceiling
6. Under SHG-Bank Linkage Program the ratio of savings linked loans to SHGs by banks can vary from a saving to
loan ratio of 1:1 to: 1:4.
7. For being eligible for Revolving Fund under NRLM, Self Help Group is required to follow Panch Sutras. What are
these Panch Sutras?: Regular Saving, Regular internal lending, Regular recovery, Regular Meetings
and Regular accounts.
8. What is not the objective of Self Help Groups? Marking Super profit or raising loan from banks.
9. What extent SHG finance can be refinanced by NABARD?: 100%.
10. Number of members in a Joint Liability Group (JLG) can be: 4 to 10.
11. In case of NRLM, how much loan is given under 2nd dose?: 5-10 times of the savings and revolving fund
or Rs 100000 whichever is higher.
12. NULM Funding sharing ratio: 75% by Central Govt. and 25% by State Govt.
13. Under PMEGP scheme maximum project cost for Business / Service sector is: Rs 10 lacs.
14. Minimum Education qualification for PMEGP: For Mfg projects upto 10 lac and Business/service sector
upto 5 lacs: Nil
15. What is the reservation/target for Woman beneficiaries in SHG in the NULM scheme: 30%
16. Min members in SHG in remote area/ or members with Disability: 5 Members
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17. JLG (Joint Liability Group); maximum finance per person: Rs 50000
18. Atal Pension Yojna: Maximum contribution by GOI: 50% of the amount of contribution with a maximum of Rs
1000 p.a. for 5 years.
19. Sukanya Smridiy yojana – maximum amount of deposit in a financial year: Rs 150,000
20. Personal Accident cover for death and permanent disability in PMJDY: Rs.1.00 Lac.
21. In Small Saving Bank Account all credits in a financial year should not exceed : Rs. 1 lac
22. PMSBY insurance cover in accident: Max Rs. 2 lac
23. What is the maximum number of withdrawals in a month from Basic Saving Bank Deposit account? : 4.
24. What is rate of premium in Pradhan Mantri Suraksha Bima Yojana (PMSBY): Premium payable Rs.12 per
annum per member; sum insured Death/ permanent disability Rs.2 lacs; partial disability Rs. 1 lac.
25. What is age limit in PM Jeeven Jyoti Yojna?: Eligible all saving accounts holder in the age of 18 to 50
years; Benefits Rs. 2 lac on death due to any reason; Premium-Rs. 330 per annum per member.
26. Business Correspondent agent uses which machine for transactions: Biometric Machine.
27. PMJDY - overdrafts extended by banks up to Rs 5,000 in PMJDY accounts will be eligible for classification under
priority sector advances as also weaker sections, provided the borrowers household annual income does not
exceed: Rs 60,000 for rural areas and Rs 1,20,000 for non-rural areas
28. Atal pension Yojana: Contribution of Govt: 50% of the premium subject to a maximum of Rs 1000 every year for
5 years provided enrolment up to 31.3.2016. Maximum Rs 5000 in 5 years.
29. What is the maximum amount of loan to SC/ST for construction of house under DRI scheme: Rs.20,000/-
30. OD in PMJDY account upto: Rs. 5,000/-.
31. Difference between import and export is called: Balance of Trade
32. Maximum amount of loan for coverage under Priority Sector in respect of Housing Loan at Metro cities with
population of 10 lac or above: Rs.28 lac
33. What is the maximum amount of loan to SC/ST for construction of house under DRI scheme: Rs.20,000/-
34. Who fixes scale of finance for short term crops : Distt. Technical Committee
35. BSBDA a/c holder should close all other saving bank accounts in that bank within: 30 days
36. SHG comes under : Micro Financing
37. Maximum age of girl child for opening account in Sukanya samridhi yojna: 10 yrs.
38. What is the rate of Swachh Bharat Cess as part of Service tax?: 0.5% from 15 Nov 2015.
39. What is full form of USB: Ultra Small Branch
40. Sukanya Smridiy yojana – maximum amount of deposit in a financial year: Rs 150,000
41. What is the income criteria for being eligible under PMEGP?: No income ceiling.
42. No collateral up to the loan amt in NRLM Aajivika: Upto 10 lacs.
MSME
1. CGTMSE cover eligible for loan upto: Rs. 200.00 Lacs
2. Loan to MSME without collateral: Rs.10.00 Lac.
3. CGTMSE set up by: Govt. of India and SIDBI.
4. Trade e-Receivable Discounting System: Joint bid by NSE with SIDBI
5. The RBI revised guidelines for rehabilitation of MSMEs are applicable for exposure up to: Rs 25 cr.
6. A unit in service sector will be classified as Medium enterprise if investment in equipment is : More than Rs 2
crore and up to Rs 5 crore.
7. What is the full form of CGTMSE?: Credit Guarantee Trust for Micro and Small Enterprise.
8. What is the Standard rate of Guarantee fees for loans more than Rs 5 lac made to micro enterprises under
CGTMSE?: 0.85% p.a. of limit sanctioned.
9. What is the maximum amount of finance under Shishu category of MUDRA: Rs.50,000
10. What is finance limit as per Nayak committee recommendation under MSME?: Up to Rs. 5 Cr.
11. Which of the following is not part of Plant and machinery?: Land, Building, Fire Equipment, Electrical fitting,
Furniture, None: All of the above.
12. For MSE units, no collateral security / third party guarantee is to be taken for loans upto Rs. _____: Rs.10
lakhs. (For Good track record unit upto Rs 25 lacs).
13. What is guarantee corpus in MUDRA Bank or funds allocated for MUDRA: Rs.20,000 crore.
14. SMERA stands for : Small & Medium Enterprises Rating Agency.
15. START-UP INDIA: Under this plan the government will set up a fund with an initial corpus of 2,500
crore and a total corpus of 10,000 crore over a period of four years.
16. Cluster based approach is applicable for: a) Priority credit advance b) SME* c) SHG.
17. As per the Task Force committee headed by T.K.A. Nair, the banks to achieve annual growth of _____% in Micro
enterprise accounts: 10% p.a. Annual growth target of outstanding advance to Micro & Small Enterprises: 20%
18. For MSE units, no collateral security/third party guarantee is to be taken for loans upto Rs. _____: Rs. 10 lakhs.
(For Good track record unit upto Rs 25 lacs).

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19. For financing MSE, cluster approach & 4-c approach suggested by: Ganguli Committee
20. Maximum number of vehicles that can be owned by an SRTO to be treated as priority sector lending is :
Now,
no stipulation regarding no of vehicles; investment not to exceed Rs.2 crore
21. MUDRA Bank: Micro units Development Refinance Agency-Corpus Rs.20,000 cr.
22. What is the Standard rate of Guarantee fees for loans more than Rs 5 lac made to micro enterprises under
CGTMSE?: 0.85% p.a. of limit sanctioned.
23. CGTMSE has been set up by: Govt of India and SIDBI.
24. Annual growth target of outstanding advance to Micro & Small Enterprises: 20% on year to year basis.
25. Under Mudra loan scheme, up to how much amount of loan can be sanctioned under Shishu category: Rs 50000
26. Micro Enterprise target for 2016-17: 7.5%
27. CGTMSE cover eligible for loan upto: Rs.200.00 Lac.
28. Loan to MSME without collateral: Rs.10.00 Lac.
29. CGTMSE set up by: Govt. of India and SIDBI.
30. CGTMSE for Micro units up to Rs 5 lacs is ______: 85% with maximum amount of claim upto Rs 4.25
lacs.
31. Micro Enterprise target for 2016-17: 7.50% of ANBC or CEOBE whichever is higher.
32. Max loan amt covered under CGTMSE: Rs 2 cr Fund based+ non fund based.

NPA & RECOVERY MANAGEMENT

1. Under OTS, the compromise amount is calculated after taking in _______: Opportunity Cost.
2. What is the limitation period when Govt. wants to take legal action for recovery of its dues: 30 years.
3. Provision on Commercial Real Estate in Residential Housing: 0.75% of outstanding
4. CGTSME guarantee fee for NPA level below 6%: Standard rate minus 25bps
5. For how much period the account should be irregular for being classified as SMA-2 : 61 days to 90 days.
6. What is the amount of fees for registration with CERSAI?: Rs 50 for loan up to Rs 5 lakh and Rs 100 for loan
more than Rs 5 lakh.
7. Provision on secured Sub-Standard Loan: 15% of outstanding.
8. Maximum amount of claim that can be filed Lok Adalat: Rs. 20.00 Lac and above Rs.20 lac in Lok Adalat
formed by DRT.
9. Eligible Amount of suit in DRT: Rs.10.00 Lac & above.
10. Time Limit for registration of equitable mortgage with CERSAI: 30 days from date of deposit of title deeds.
11. In case of equitable mortgage, the deposit of title deeds has to be at ______: Any notified town notified by
the State Govt.
12. CGTSME guarantee fee for NPA level below 6%: Standard rate – 25bps
13. Loan given for short duration crop becomes NPA when it is overdue for: two crop seasons
14. Borrower should be given .... days notice prior to possession and .... days notice prior to sale of property under
Sarfesi Act: 60 days; 30 days.
15. NPA - D3 Category (Beyond three years): 100% Provision both on secured and unsecured.
16. SARFAESI is applicable to what type of a/cs: Secured NPA Accounts.
17. Which is the latest recovery channel made available to the banks for speedy recovery of NPAs backed by security:
Action can be taken under SARFAESI.
18. For declaring a borrower as non cooperative the cut off total fund based and non fund based facility is above: Rs
5 cr.
19. Whether premium of CGTMSE as per NPA category relates to loan upto 5 lac: no. Applicable for loan above
Rs 5 lac
20. Pari Passu charge means: Sale proceeds of security shared by different banks in the ratio of their
outstanding loans.
21. NPA norms are not applicable to which type of loans?: Loan against deposits, life insurance policy and NSC’s.
22. CC account will become NPA if limit is not reviewed for how many days: 6 months from due date of renewal.
23. Which is the latest recovery channel made available to the banks for speedy recovery of NPAs backed by
security: Action can be taken under SARFAESI.
24. What is the % age of provision on Standard assets in case of Direct Agriculture and Direct MSE advances:
0.25% of outstanding
25. Classification of NPA in case of consortium advances: Each bank will classify according to its own record of
recovery
26. Sarfaesi proceeding in a case of consortium advance: If 60% of creditors due agree.
27. Total number of Banking Ombudsman in India: 15.
28. Agency which purchases NPA from banks is called: Assets Reconstruction company.
29. NPA norms are not applicable to which type of loans?: Loan against deposits, life insurance policy, NSC.
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30. CC account will be NPA if limit is not reviewed for how many days: 180 days from due date of renewal.
31. Appeal against Award given by Lok Adalat can be made to: No Appeal to any court against decision of Lok Adalat
40. Features of CDR Mechanism: It is for restructuring of corporate loans with outstanding of Rs. 10 Cr or
above in a multiple lender case.
41. Features of CDR Mechanism: It is for restructuring of corporate loans with outstanding of Rs. 10 Cr or
above in a multiple/consortium lender case.
42. SARFAESI Act is not applicable if security is: Agriculture Land
43. Cut off limit for reporting of non co-operative borrower: Rs.5 crore
44. An account guaranteed by Central Govt. will become NPA : As per prudential norms of RBI, when the Central
Govt. repudiates its guarantee.
45. What is the % age of provision on Standard assets in case of Direct Agriculture and Direct MSE advances: 0.25%
of outstanding.
46. Which of the following can purchase NPA? a) ARC b) Banks c) Financial Institutions d) NBFC e) All of the
above*
47. Name the scheme approved by Union Government for financial restructuring of debt of power distribution
companies with the key aim for financial turnaround and revival of Power Distribution Companies. (Ujwal
DISCOM Assurance Yojana (UDAY))
48. Provision on secured Sub-Standard Loan: 15% of outstanding.
49. Under OTS, the compromise amount is calculated after taking in _______: Opportunity Cost.
50. NPA - D3 Category (Beyond three years): 100% Provision both on secured and unsecured.
51. Classification of NPA in consortium advances: Each bank will classify according to its own record of
recovery.
52. Sarfaesi proceeding in a consortium advances if: 60% of creditors due agree.

FOREX & INTERNATIONAL BANKING

1. Dealer entered in spot position on 25-Feb-2016 (Thursday). The funds settlement will take place on 29-Feb-2016
(exclude SAT/SUN)
2. Remittance under LRS for education. What rate to be applied : TT selling rate
3. As per UCPDC how much time is allowed to issuing bank and negotiating bank for scrutiny of documents?: 5
banking days
4. FATCA introduced by USA is short title of? Foreign-Account-Tax-Compliance-Act
5. Foreign students account. How much amount can be deposited or withdrawal in first 30 days?: Deposit 1000 USD;
withdrawal max Rs. 50000/-
6. What rate will be applicable when F.C. received in NOSTRO account earlier : TT buying rate
7. Under UCPDC-600 what is the time period during which Issuing Bank or Nominated Bank should check the
documents to ensure that these are as per LC requirement : 5 banking days.
8. A financial product, which is driving its value from another ……..financial product, is called
a) Forward Contract. b) Swap c) Derivative; d) Currency futures: Ans- Derivative.
9. To reduce its foreign currency risks in case of overdue Export bill, bank should do: a) Forward Contract b) Option
contract c) Swap d) Crystallization: Ans Crystallization.
10. Minimum and maximum period for FCNR(B) accounts: 1 year and 5 year.
11. In which currency, FCNR(B) can be opened: In any freely convertible foreign currency.
12. What is the minimum and maximum period for FCNR (B) : 1 year and 5 years.
13. Full form of LRS: Liberalized Remittance Scheme.
14. A foreign tourist who is in India and is having USD 5,000 wants to open a/c. Which type of deposit account he
can open: NRO for a maximum period of 6 months
15. Unspent Foreign Currency to be surrendered within: 180 days And also can be purchased before 180
days.
16. Packing Credit facility is available in which type of Letter of Credit: Red Clause Letter of Credit
Number of days for examination of documents by negotiating bank under L/C by bank: 5 Banking days.
17. Why crystallisation of Import bill: To extinguish foreign exchange liability by debiting the a/c and avoid
exchange fluctuation risk.
18. Interest Rate on FCNR(B) Banks is linked to: LIBOR/Swap – London Inter Bank Offered Rate.
19. EEFC - Maximum retention in foreign currency: 100%
20. A bank financed an exporter by discounted foreign bills but the customer did not pay amount on due date. Bank
wanted reverse the transaction. What rate bank will bank apply?: TT Selling rate.
21. Which Letter of Credit is similar to Bank Guarantee: Stand by LC.
22. Full form of UCPDC: Uniform Customs & Practices for Documentary Credits.
23. How much inward remittance can be credited to EEFC a/c: 100% of export proceeds.

Compiled by Sanjay Kumar Trivedy, Chief Manager, Canara Bank,Shrigonda, Ahmednagar, Maharashtra 6 | P a g e
24. What is the rate applied for crystallization of Export Bills discounted into Rupee Liability: TT Selling Rate.
25. Deemed Exports means: Goods supplied do not leave the country and the payment for such supplies is
received either in Indian rupees or in free foreign exchange.
26. Beyond what period permission of ECGC is required for extending package credit advance? 360 days.
27. Under Liberalised Remittance Scheme (LRS) any resident individual can remit abroad upto : $2,50,000 per
person per financial year.
28. Packing Credit facility is available in which type of Letter of Credit: Red Clause Letter of Credit.
29. Number of days for examination of documents by negotiating bank under L/C by bank: 5 Banking days.
30. Interest Rate on FCNR(B) Banks is linked to: LIBOR/Swap – London Inter Bank Offered Rate.
31. Which one of the following commodities has the maximum share in our imports at present: Crude oil.
32. A Usance bill is accepted by the attorney of the drawee. Subsequently the drawee revokes the power of attorney
before the bill is due. What will you do in the case: It is deemed to be accepted by the drawee.
33. Imports regulator: DGFT
34. Minimum and maximum period for FCNR(B) accounts: 1 year and 5 year.
35. In which currency, FCNR(B) can be opened: In any freely convertible foreign currency.
36. VOSTRO account: Account of a correspondent bank abroad with a with a domestic bank in local
currency.
37. How much foreign currency can be retained by an individual after returning from abroad: USD 2000.
38. How much forex can be released for business trip abroad: USD 250000 in a financial year
39. Maximum Forex that can be retained by an individual returning from abroad in the form of Currency notes or TC:
USD 2000. Balance to be surrendered to AD branch within 180 days or deposited in RFC Account.
40. Maximum amount of remittance by an individual in a financial year under RBI Liberalised Remittance Scheme:
USD 250000.
41. NRE Deposited DD of USD15000 drawn on you in his account. Which rate will be used:TT Buying Rate
42. FC rate on purchase of Foreign DD: TT buying rate
43. Which country is not a member of Asian Infrastructure Investment Bank: USA
44. Minimum and maximum period for FCNR(B) A/cs: 1 year and 5 year.
45. In which currency, FCNR(B) can be opened: In any freely convertible foreign currency.
46. Deferred Payment Guarantee is ____: Guarantee issued when payment by applicant of guarantee is to
be made in installments over a period of time.
47. Difference between Import and Export is called: Balance of Trade
48. As per UCPDC how much time is allowed to Issuing Bank and Negotiating Bank for scrutiny of documents: 5
banking days following the date of receipt of documents.
49. A financial product, which is driving its value from another financial product, is called: a) Forward Contract b)
Swap c) Derivative; d) Currency futures: Derivative.
50. To reduce its foreign currency risks in case of overdue Export bill, bank bank should do: a) Forward Contract b)
Option contract c) Swap d) Crystallization: Crystallization.
51. The appraisal of Deferred Payment Guarantee is same as that of a) Demand Loan b) OD c) Term Loan d) CC :
Term Loan.
52. In which currency, FCNR(B) can be opened: In any freely convertible foreign currency.
53. A foreign tourist who is in India and is having USD 5,000 wants to open a/c. Which type of deposit account he can
open: NRO for a maximum period of 6 months.
54. Currency of Belgium: Euro.
55. SWIFT India Domestic Services (“SWIFT India”): SWIFT has announced its official launch in India. SWIFT India
is a member-owned cooperative created by leading public and private banks: Axis Bank, Bank of India,
HDFC Bank, ICICI Bank, PNB, SBI and Union Bank of India.
56. Stand by L/c is like: Bank Guarantee
57. Duty of confirming bank: Only to verify the genuineness of LC.
58. Imports regulator: DGFT
59. FCNR(B) account type: Term deposit.
60. Abbreviation for UCPDC: Uniform Customs & Practices for Documentary Credit.
61. What is Deferred Payment Guarantee (DPG) and what is the difference between Term Loan and DPG: DPG is
issued for the purchase of capital goods in favour of machinery suppliers who agrees to sell machinery for
payment in installments guaranteed by the bank. The appraisal of TL and DPG is very similar the only difference
is the outlay of funds.
62. How much inward remittance can be credited to EEFC a/c: 100% of export proceeds.

LOANS & ADVANCES

1. No bank can issue bearer DD/bill of exchange as per which section and Act: Section 31 RBI Act.
2. Under which Section of N.I. Act, a Paying Banker gets protection in respect of material alteration which was not
Compiled by Sanjay Kumar Trivedy, Chief Manager, Canara Bank,Shrigonda, Ahmednagar, Maharashtra 7 | P a g e
 visible with a naked eye: Section 89 of N.I. Act.
3. When guarantor on payment of all dues of principal debtor, gets which rights as that of creditor?
a) Subrogation* b) Lien c) Assignment d) Pledge.
4. What is limitation period to file suit against state/ central government guaranteed loans/ bills? 30 Years
5. Rohit was a loanee of the branch and news has come that he has expired. On enquiry, it was observed that he
left some assets. Upto what extent the legal heirs are liable to the Bank? Legal heirs are liable for the
liabilities upto the assets inherited by them.
6. What is the % age of provision on Standard assets in case of Direct Agriculture and Direct MSE advances: 0.25%
of outstanding
7. Which of the following can purchase NPA? a) ARC b) Banks c) Financial Institutions d) NBFC e) All of the
above*
8. Why banks insists that partnership firms shold br registered before giving any credit facility: Unregistered firms
cannot file suit to recover their due amount.
9. If an advance is overdue for 9 months and realizable security value is 40% of outstanding, then loans should
classified as : Doubtful.
10. Balance in NPA account is Rs.100 lakhs. Security value at the time of previous inspection was Rs.58 but in the
fresh inspection, the value is assessed at Rs.28 lac. Account is NPA since 1st Jan 2015. What provision will be
required as on 31.3.2016: Rs.79 lac. (it will become a DF-1 account. Provision 7 lac + 72 lac)
11. As per UCPDC how much time is allowed to issuing bank and negotiating bank for scrutiny of documents?: 5
banking days
12. Credit Rating Agencies in India are regulated by: RBI
13. CRISIL stands for: Credit Rating Information Services of India Ltd.
14. RBI grant the loan to Banks against Govt Securities at : Repo Rate.
15. RBI at which rate purchases or rediscounts B/E or other Commercial Bks: Bank Rate (7%)
16. What type of charge is created on FDR: Assignment.
17. Bench Mark Prime Lending Rate (BPLR) system was in force up to 30.06.2010. From 01- July-2010, it was
replaced by Base Rate system.
18. Name the new formula formulated by RBI to calculate lending rates which will replace the base rate. (Marginal
Cost of Funds based Lending Rate (MCLR))
19. CARE stands for : Credit Analysis & Research Ltd
20. Which is not a credit rating agency in India: CIBIL.
21. When ownership is with the borrower but possession is with the bank, the charge is: Pledge.
22. Mortgage is defined under: Transfer of Property Act.
23. From 1.4.2016, Base rate concept is to be replaced by: Marginal Cost of Funds based Lending Rate
24. After closure of loan a/c - within how many days documents & properties should be returned: 15 days.
25. Risk weight in advances backed by State Govt. guarantee: 20%.
26. Debt Securitisation means: Conversion of receivables into debt instrument; Recycling of blocked funds.
27. Negative Lien refers to: Undertaking given by the company not to create any charge / not to get the
assets encumbered to any other bank during the currency of bank borrowings.
28. For creation of Equitable Mortgage on Agricultural land, property is to be located at: a) Any notified area b)
In cantonment area c) In metro cities d) Any where in India: Ans is D.
29. The legal liability to file charges with ROC in case of lending to a Company is that of ______: Borrowing
Company.
30. What increases a capital of a person: a) Profit b) Loss c) Depreciation d) Sale of an asset: Profit.
31. The appraisal of Deferred Payment Guarantee is same as that of a) Demand Loan b) OD c) Term Loan d) CC :
Term Loan.
32. Deferred Payment Guarantee is: Guarantee issued when payment by applicant of guarantee is to be
made in installments over a period of time.
33. What is full form of MCLR: Marginal cost of funds based lending rate.
34. Investment limit in plant and machinery for classification as small manufacturing enterprise: above Rs. 25 lac up
to Rs. 5 Crore.
35. What is Deferred Payment Guarantee (DPG) and what is the difference between Term Loan and DPG: DPG is
issued for the purchase of capital goods in favour of machinery suppliers who agrees to sell
machinery for payment in installments guaranteed by the bank. The appraisal of TL and DPG is very
similar the only difference is the outlay of funds.
36. A bank has financed against pledge of goods. Inspector pointed out that the charge on good is not
registered. What it is time limit to register? Pledge need not required registration.
37. Exposure norms for individual in Infrastructure project: 20% of Capital fund of the bank.
38. What is Interest Spread: Difference between interest earned and interest expended.

Compiled by Sanjay Kumar Trivedy, Chief Manager, Canara Bank,Shrigonda, Ahmednagar, Maharashtra 8 | P a g e
39. Banks give loan against Shares which are in: D-mat form.
40. No collateral up to the loan amt in NRLM Aajivika: Upto 10 lacs.
41. Stand by L/c is like: Bank Guarantee.
42. Duty of Confirming Bank: Only to verify the genuineness of Letter of Credit.
43. When a term loan for more than 3 years is sanctioned by the bank the major risk is : Liquidity risk (due to ALM
mismatch).
44. Mortgage means: Transfer of interest in a specific immovable property.
45. Limitation period for filling case for enforcing mortgage : 12 years
46. In case of equitable mortgage, the deposit of title deeds has to be at ______: Any notified town notified by
the State Govt.
47. Simple Mortgage is also known as : Registered Mortgage.
48. In case of equitable mortgage, the deposit of title deeds has to be at ______: Any notified town notified by
the State Govt.
49. Z agrees to supply raw material to X under LC on a regular periodicity for a period of 10 months.
Which LC is more suitable: Revolving LC.
50. What is the amount of fees for registration with CERSAI?: Rs 50 for loan up to Rs 5 lakh and Rs 100 for
loan more than Rs 5 lakh.
51. What does LAF stands for_____: Liquidity Adjustment Facility.
52. W.e.f 1-4-2016, Base rate concept has been replaced by: Marginal cost of Funds based lending rate
53. Partners liability is joint and several. For CC advance by the bank to the partnership firm, partners liability is:
Unlimited.
54. ESOP scheme = Loan up to Rs. 20 lac can be given to employees.
55. DSCR is for evaluating: Term Loan repayment-surplus generating capacity.

BALANCE SHEET ANALYSIS

1. Current Ratio is 1.33:1, Current Assets is 100, what will be the amount of Current Liability: 75 lakhs
2. XYZ Limited are sanctioned a CC limit of Rs.50 lac. The drawing power in the account calculated on the basis of
available security and margin, is Rs.54 lac. How much drawings in the account will be allowed?: sanctioned limit
of DP whichever is lower
3. Projected Turnover is Rs.400 lacs, margin by promoter is Rs. 20 lacs. What is maximum bank finance as per
Annual Projected Turnover method: 80 lakhs.
4. If Break Even Point is high, it can be construed that the margin of safety is ____: Low.
5. Working Capital Means_______: Current Assets.
6. If Net Working Capital is 48 and Current Liabilities are 12, what is the Current Ratio: 5:1 (Current assets 60;
Current liability 12).
7. To improve Current Ratio of 2:1, what has to be done?: a) Recover cash from Receivables b) Cash sales c)
Decrease the Bills payables*
8. Banks undertake BEP analysis to assess: Margin for safety.
9. Net working capital means: Current assets minus current liabilities.
10. Receivables 20 and sales 120. Find the Receivables turnover turnover ratio in months: 2 months (20/120 x12)
11. CC limit sanctioned is Rs 4 lacs and Stocks are valued at Rs. 6 lacs. If the margin to be maintained is 25% , what
is drawing power? : NOTIONAL - 4.5 lacs, BUT ACTUAL Rs. 4 LAC.
12. What is the operating cycle average period for turnover in Annual Projected Turnover method: 3 months of
annual sales.
13. A unit is having Current Assets of Rs.400, & the Current Ratio is 2:1, Quick Ratio 1:1. What is the level of
Inventories: 200.
14. Which of the following is the Solvency / Leverage ratio: Debt Equity Ratio (options viz., DSCR, Debtors
Turnover ratio and these 3 combined ratios were given).
15. Profit before Tax is 75, Tax is 30, Depreciation is 25, Term Loan installments is 25, Interest on Term Loan is 15.
Calculate DSCR _____: 2.12
16. Current Assets is 600, Long Term sources is 600, Total Assets is 1,000. What is NWC and Current Ratio: Current
Ratio is 1.5 : 1; NWC = 200.
17. Current liability means: Liability towards outsiders payable within 1 year.
18. Current ratio indicates: Liquidity position of the firm ability of firm to pay short term liabilities on time.

Compiled by Sanjay Kumar Trivedy, Chief Manager, Canara Bank,Shrigonda, Ahmednagar, Maharashtra 9 | P a g e
Compiled by Sanjay Kumar Trivedy, Chief Manager, Canara Bank,Shrigonda, Ahmednagar, Maharashtra 10 | P a g e