CA AkeshVyas

Which of the following is a priority sector advance

a) Home Loan of Rs. 75 lacs
b) Agriculture Loan b)
c) Car Loan for personal use
d) all of above

A Bank is not prohibited to provide loans to its director when

the loan is against :

a) Real Estate
c)
b) Shares
c) FDR
d) None of above

2
 SMA 0 account is one which is overdue upto :
a) 30 days
b) 31 to 60 days a)
c) 61 to 90 days
d) over 90 days

A bank is prohibited to give loan :

a) for acquiring KVP
b) against FDR of other banks
c) against its own shares d)

d) All of above

3
 Housing loan is classified as priority sector loans in
metropolitan cities where loan amount does not exceed
a) Rs. 10 lacs
b) Rs. 20 lacs c)
c) Rs. 35 lacs
d) Rs. 50 lacs

In case of loan against property, an immovable property is a

a) Primary security
b) Collateral Security
c) Additional Security a)
d) None of above

4
 The term used when an account becomes NPA within 1 year of
its sanction is known as :
a) Current Mortality
b) Debt Mortality
d)
c) General Mortality
d) Quick Mortality

SMA stands for :

a) Sub standard Market Account
b) System Monitoring Account
d)
c) Specially Marked Account
d) Special Mention Account
 Education Loan is classified as a priority sector loan where the
amount of loan does not exceed Rs :
a)10 lacs
b) 20 lacs a)
c) 28 lacs
d) 30 lacs

In the Balance Sheet of a Branch of a Bank, LC and Bank

Guarantee appear on:

c)
a) Assets side
b) Liability side
c) On both sides
d) Do not appear any where

6
 Maximum permissible loan under CGTMSE scheme is Rs
a) 10 Lacs
b) 100 Lacs
c)
c) 200 lacs
d) No limit

The loan in the name of a bank director can be written off with
the permission of
a) Bank Board only
b) RBI only
c) Ministry of Finance b)
d) Ministry of Finance and RBI only

7
 Exercise of rights by the beneficiary of bank guarantee is
known as
a) Devolvement of guarantee
b) Invocation of guarantee b)
c) Transfer of Bank Guarantee
d) None of above

A bank Guarantee can be

a) Performance Bank Guarantee
b) Financial Bank Guarantee
c) Inland Bank Guarantee d)
d) All of above

8
 Non payment of bills under LC on due date by the customer is
known as
a) Devolvement of LC
b) Invocation of LC a)
c) Expiry of LC
d) None of above

The person on whose behalf a Bank Guarantee is issued is

called the :
a) Creditor
b) Beneficiary
c) Guarantor d)
d) Customer

9
 Under Cash Credit where the goods are hypothecated to Bank
a)Ownership of goods is transferred to the Bank
b) Possession of goods is transferred to the Bank
c) Both are transferred to the Bank
d)
d) Both are not transferred to the Bank

The facility of Bills discounting is allowed to the borrowers

a) To meet their financial requirements for fixed assets

b)To meet working capital requirement for maintaining inventory
c)To meet working capital requirement for credit sales
d) All of above
c)

10
 The banks do not allow advance against :
d)
a) Clean bills
b) Documentary bills
c) Usance bills
d) Accommodation bills

The insolvency resolution process can be initiated if a corporate

debtor defaults in repayment of debt of

a) Rs 1 lakh and above

a)
b) Over Rs 1 lakh
c) Rs 100 lakh and above
d) No limit

11
 Under Insolvency and Bankruptcy Code , the time limit for
completion of resolution process is

a) 90 days further extended upto 90 days c)

b) 90 days further extended upto 180 days

c) 330 days
d) 180 days further extended upto 90 days

Under Insolvency and Bankruptcy Code , the voting rights in

Committee of Creditors is with
a) Operational Creditors
b) Financial Creditors b)
c) Insolvency Professional
d) All of above

12
 Which of the following is not a credit rating agency
a) ICRA
b) CRISIL
d)
c) CARE
d) CIBIL

In context of bank loans, SDR stands for

a) Standard drawing rights
b) Special drawing rights
d)
c) Strategic drawing rights
d) Strategic debt restructuring

13
 For eligibility of an advance to be covered under CGTMSE
scheme , the following are not required to be taken :

a) Primary security b)
b) Collateral Security
c) Person guarantee of the borrower
d) All of the above

In context of NPA accounts, CDR stands for :

a)Cumulative deposit receipts

b) Corporate debt restructuring b)
c) Corporate debt revaluation
d) None of above

14
 Which out of the following is a post shipment credit in case of
export loans :
a) Packing Credit
b) Foreign Letter of credit d)
c) Stand by LC
d) Export bill discounting

Who amongst the following is not eligible to provide

guarantee in respect of loan taken by another person
a) Illiterate
b) Senior citizen
c) Pardanasheen women
(d)
d) Minor

15
 Which of the following is a retail credit
a) Housing
b) Export a)
c) Cash Credit
d) Corporate term loan

In case of winding up of a company. Non registration of ROC

charge makes a bank to :

a) Become unsecured creditor against other charge holders

b) Share the securities with other charge holders
c) Lose the remedy to file suit for debt
a)
d) Lose both the security and right to file suit

16
 LOANS AGAINST SHARES IN PHYSICAL FORM TO
INDIVIDUAL CAN BE GIVEN UPTO :
a) Rs. 1 lacs
b) Rs. 5 lacs c)
c) Rs. 10 lacs
d) No restriction

HYPOTHECATION IS APPLICABLE IN CASE OF

a) Movable goods
b) Immovable property
a)
c) Book debts
d) Corporate guarantee

17
 Except one of the following others are known as Non Fund
based facilities:
a) Letters of Credit
b) Bank Guarantees d)

c) Co-acceptance of Bills
d) Cash Credit

Loan to a proprietorship or partnership concern can not be

give against security of shares and debentures if they are held
as
a)Primary security
b)Collateral security
c) No restriction a)

18
 In case of Bank guarantees, commission is required to be
recovered upto:
a) Only Expiry period
b)
b) Expiry period and claim period
c) Only claim period
d) 10 years

The following entity is eligible to be covered under the

CGTMSE scheme
a) Micro Enterprises
b) Large Enterprises
(a)
c) Medium Enterprises
d) All of above

19
 Which of the following is not a method of assessment of
working capital
a) Turnover method
b) Cash Budget method c)
c) Fund Flow method
d) MPBF method

For MSME accounts, turnover method of working capital

assessment would be applicable for sanction limit upto

a) Rs. 1 crore
b) Rs. 3 crore
c)
c) Rs 5 crore
d) Rs. 10 crore

20
 Loan against life insurance policy is provided on the
a) Face value of the policy
b) Surrender value of the policy b)
c) None of above
d) Both of above

ROC charge is required to be created in case of

a) Pledge of goods
b) Hypothecation of stocks
d)
c) Hypothecation of book debts
d) All of above

21
 Co acceptance of bills is required to be signed by atleast 2
officials when the amount of bill is Rs.
a) 5000/- or more
b) 10000/- or more b)
c) 50000/- or more
d) 100000/- or more

A fire occurred in the premises of the borrower destroying

goods worth Rs 4 lacs in the godown which contained goods
valued Rs. 10 lacs . The total insurance of stocks was Rs. 5
Lacs. The admissible insurance claim will be :
a) Rs 4 lacs
b) Rs. 8 Lacs
c)
c) Rs. 2 lacs
d) Nil since stocks are not fully insured

22
 Current ratio indicates the borrower’s
a) Solvency
b) Profitability
c)
c) Liquidity
d) None of above

The banks are prohibited to grant loans against own shares under :

a) RBI Act 1934

b) The Companies Act 2013
d)
c) Negotiable Instruments Act
d) Banking Regulation Act 1949

23
 The full Form of MPBF is :
a) Maximum provision of bank factors
c)
b) Minimum Possible Bank finance
c) Maximum Permissible Bank Finance
d) None of the above

A Bank has lent Rs 5 lacs to a private Ltd company for purchase of car
for its director’s personal use , There fore the Bank’s charge :

a) has to be registered with ROC and RTO

b) need not to be registered with ROC since car is meant for personal
use of a director
c) Registration is optional
a)
d)None of the above

24
 In case of a Bank Guarantee issued by a Bank on behalf of a
company which has since gone into liquidation , the bank on
invocation of the Bank Guarantee by the beneficiary is required to
pay the amount to
a) Liquidator and not to the beneficiary c)
b) The Court
c) The Beneficiary
d) Need not pay since on liquidation, the bank guarantee lapses

In case of fraud committed by a customer on whose behalf the

bank has issued a bank guarantee , the Bank on invocation :
a) Need not pay the amount to the beneficiary
b) Has to pay the beneficiary
c) Direct the beneficiary to recover the amount from customer
d) None of the above
b)

25
 Total debtors of the borrower upto 90 days (eligible for DP
calculation) are Rs 12 lacs. The prescribed margin is 25% .
The borrower also has a bills discounting facility . The above
amount of Rs 12 lacs include Rs. 4 lacs of book debts against
which bills discounting facility has been availed. The DP for
Cash Credit facility against book debts will be Rs :

a) Rs 12 lacs
b) Rs. 9 lacs
c) Rs. 4 Lacs d)
d) Rs. 6 lacs

26
 CERSAI REGISTRATION TO BE MADE WITHIN

a) 10 days of Equitable Mortgage c)

b) 20 days of Equitable Mortgage
c) 30 days of Equitable Mortgage
d) 60 days of Equitable Mortgage

CHARGE CREATED ON LIC POLICY IS :

a) Assigned
b) Hypothecated
a)
c) Pledged
d) None of above

27
 DUE DILIGENCE REPORT IS REQUIRED IN CASE OF :

a) Multiple Banking
b) Consortium arrangements c)
c) Both of the above
d) None of above

DUE DILIGENCE REPORT CAN BE GIVEN BY A :

a) Company Secretary
b) Chartered Accountant d)
c) Cost Accountant
d) All of above

28
 SARFAESI ACT is not applicable on accounts where bank’s
dues do not exceed Rs. :
a) 10,000/- c)
b) 50,000/-
c) 100,000/-
d) 500,000/-

LAW OF LIMITATION IS NOT APPLICABLE IN REPECT OF :

a) Advance against pledge of shares d)

b) CC granted against hypothecation of inventory
c) Term loan secured against hypothecation of Machinery
d) Right to set off

29
 LTV Ratio is :

a) Limit to total value ratio

b) Loan to Value Ratio b)

c) Loan turnover value ratio

d) None of above

PCR is :

a) Prudential Credit Ratio

c)
b) Past Credit Ratio
c) Provision Coverage Ratio
d) None of above

30
 AS PER THE RBI GUIDELINES, VALUATION OF PROPERTY BY 2
INDEPENDENT VALUERS IS REQUIRED WHERE THE VALUE OF
PROPERTY EXCEEDS RS. :
a) 5 Crore c)
b) 10 Crore
c) 50 Crore
d) No such requirement

THE LOANS WHERE THE RATE OF INTEREST CAN BE BELOW

MCLR ARE :
a) Loans to depositors against own deposits
b) Agriculture loans
c) Loans to bank’s own employees d)
d) All of above

31
 The lead bank concept relates to

a) Sole Banking c)
b) Multiple Banking
c) Consortium Banking
d) None of above

Consortium advances refer to

a) Multiple Financing
b) Joint financing by more than one bank
c) Financing by NBFC
b)
d) None of above

32
 Which of the following is not true in case of SARFAESI Act

a) Minimum Rs. 1 lac should be overdue in NPA account

b) 60 days notice need to be given to the defaulting borrower
c) Action under the SARFAESI Act can be initiated even if one
instalment is overdue
d) All the above c)

As per the RBI guidelines, the cut off limit for classification of
an account as Willful defaulter is

a) More than Rs. 10 lacs

b) More than Rs. 25 lacs
c) More than Rs. 50 lacs b)
d) More than Rs. 100 lacs

33
 Lead Bank charges are recoverable in case of

a) Sole Banking b)
b) Consortium Banking
c) Multiple Banking
d) All of above

Who amongst the following is not eligible to execute loan

documents :

a) An illiterate person d)
b) A minor
c) An insolvent
d) b and c above

34
 The following is exempted from the provisions of the
SARFAESI Act :

a)
a) Agriculture land
b) Tractor loans
c) Export loans
d) Residential houses

Notice under SARFAESI Act is required to be signed by an

officer not below the rank of

a) General Manager
d)
b) Zonal Manager
c) Senior Manager
d) Chief Manager

35
 A car loan is secured by

a) Assignment
c)
b) Pledge
c) Hypothecation
d) Mortgage

As per the RBI guidelines, diversion of funds take place when

a) Short term funds are used for long term purposes

b) Long term funds are used for short term purposes
c) Both of above
d) None of above
a)

36
 Parri Passu charge refers to a charge

a) Ranking in priority on first come basis

b) Merely notional in nature
c) Ranking equally in proportion to the lenders’ share of
advance
d) None of above c)

SARFAESI Act is not applicable to

a) Private Bank
b) Cooperative Banks
d)
c) SBI and its associate banks
d) None of the above

37
 A bank can hold shares of a company upto :
b)
a) 20% of the paid up capital of the company
b) 30% of the paid up capital of the company
c) 40% of the paid up capital of the company
d)50% of the paid up capital of the company

In bank guarantee, a bank makes payment to the beneficiary

a) When convinced that the beneficiary has suffered loss

b) On being sued by the beneficiary
c)After the guarantee being invoked and getting the permission of
the customer on whose behalf guarantee is issued
d)Merely on demand of the beneficiary d)

38
 Limitation period of documents can be extended by

a) Obtaining fresh set of documents

b) Obtaining acknowledgement of dues
c) Receiving part payment d)
d) All of above

In manufacturing sector, a medium enterprises is one with

investment in plant and machinery of

a) Less than Rs 25 lacs

b) Rs 25 lacs to Rs 5 crore d)
c) Rs 2 crore to Rs 5 crore
d) Rs 5 crore to Rs 10 crore

39
 For term loans, the period of limitation of documents is three
years from :

a) Date of documents c)
b) Date of sanction
c) Due date of overdue installment
d) None of above

In case of mortgage of a property belonging to a person other

than borrower, he/she is to be made

a) Co applicant of the loan

b) Co borrower of the loan c)
c) Guarantor
d) None of above

40
 Bank Guarantees to be signed by 2 officials jointly in case amount
is:

b)
a) Rs. 20000 OR MORE
b) Rs. 50000 OR MORE
c) Rs. 100000 OR MORE
d) None of the above

Minimum margin on bank guarantees issued on behalf of share

brokers is:

c)
a) 10%
b) 20%
c) 50%
d) 75%
41
 SARFAESI ACT 2002 is applicable to
a)
a) Whole of India
b) Whole of India except J&K
c) All places except villages below 10000 population
d) Only to notified place

In case of default of an export loan, the bank is required to file

its claim with

a) DICGC
b) ECGC b)
c) CGTMSE
d) None of the above

42
 The date of stamp papers on which documents are executed
should be

a) Before the date of execution of documents

b) Same as date of execution of documents
c) After the date of execution of documents
d) a and b d)

MCLR is decided by

a) Individual banks
b) Indian Banking Association a)
c) RBI
d) Corporate borrowers

43
 Stamp duly on which of the following document does not vary
from the state to state:

a) Mortgage agreement
d)
b) Hypothecation Agreement
c) Guarantee agreement
d) Bill of exchange

As per the fair practice code for lenders , copy of the loan
agreements and documents are to be given by the bank to the
borrower :

a) On the request of the borrower in writing c)

b) On the request of the guarantor in writing
c) Even without any request
d) On the basis of creditworthiness of the borrower

44
 SMA accounts are classified as :

a)
a) Standard assets
b) Sub Standard assets
c) Doubtful
d) Loss

Loan against FDR can be granted by a Bank if FDR is issued

by
b)
a) Same branch of the Bank
b) Any branch of the same Bank
c) Any nationalized Bank
d) Any Bank

45
 In case of invocation of bank guarantee, the Bank is required to
make payment to the beneficiary:

a) Immediately
a)
b) Within 24 hours
c) Within 30 days
d) Within 6 months

46
 Equitable mortgage in respect of an immovable property of a
company has to be registered with :

a) ROC
b) CERSAI d)
c) RTO
d) (a) and (b)

In case of consortium advances, the rate of interest to be

charged in the account will be decided by the :

a) Lead Bank
b) Individual Banks b)
c) RBI
d) Any of the above

47
 As per RBI guidelines, Legal audit is required to be conducted
for all accounts having exposure of :

a) Rs 50 lacs and above

c)
b) Over Rs. 50 lacs
c) Rs 500 lacs and above
d) Over Rs 500 lacs

As per RBI guidelines, the periodicity of Legal audit is

a) each year d)
b) 3 years
c) 5 years
d) Not specified . To be decided by each bank

48
 What is the margin requirement under second method of
lending of Tandon Committee :

a) 25% of total current assets

a)
b) 25% of total assets
c) 25% of the working capital gap
d) None of the above

Cash budget method of credit appraisal is for :

a) All manufacturing industries

b) Tea sector
d)
c) Sugar sector
d) Tea and sugar both

49
 Period of limitation of documents is computed from

a) Date of sanction of advance

b) Date of disbursement of advance
d)
c) Date of NPA
d) Date of execution of documents

The cut off limit for classifying a borrower as non cooperative

is

a) Rs 50 lacs
b) More than Rs 50 lacs c)
c) Rs 5 crore
d) More than Rs. 5 crore

50
 A bank finances an agriculturist to buy a tractor. The loan is
secured by:

a) Hypothecation of the tractor a)

b) Mortgage of the tractor
c) Pledge of the tractor
d) Assignment of the tractor

Which aspect among the following is not examined in conducting

Stock and debtors audit
(a) stock quantity, valuation
(b) physical access controls in godown/ warehouse
(c) stock movement d)
(d) None of above

51
 In case of NPA which is classified as DA-II the amount of provision required is :

(a) 100% of loan outstanding;

(b) 25% of secured portion and 100% of unsecured portion

c)
(c) 40% of secured portion and 100% of unsecured portion

(d) 25% of loan outstanding

In which of the following cases, you will classify the accounts as NPA as on March
31,2019 presuming that date of signing of balance sheet is April 20,2019

(a) Cash Credit account which was continuously overdrawn for a period of more
than 90 days as on March 31,2019 but is brought within limit of April 10, 2019;

(b) Term Loan account which was having four installments overdue as on March
31,2019 but closed(recovered fully) on April 10, 2019
d)
(c) None of the above

(d) Both (a and b)

52
 It is not a discrepancy if ______ Document obtained for Advances is
kept blank.
a. hypothecation agreement
b. Loan Application Form c)
c. Share transfer deeds
d. All of the documents

XYZ & Co. a Partnership Firm enjoys a CC Limit of Rs. 200 Lakhs
sanctioned against Stock and Debtors. Margin requirement is 40%.
Borrower has submitted following details.
Stock – 300 Lacs
c)
Debtors – 100 Lacs
Creditors(for unpaid stock) – 80 Lacs
What will be the drawing power in the said case?

a. 200 Lacs b. 320 Lacs c. 192 Lacs d. 240 Lacs

53
 Application of IRAC norms is

a) Account wise c)
b) Facility wise
c) Borrower wise
d) Group wise

If the account is not paid on due date, it becomes

a) NPA
b) SMA-1
d)
c) SMA-2
d) Overdue

54
 A term loan account shall be treated as NPA if principal or
interest or both remain overdue for

a) 90 days or more b)
b) Over 90 days
c) 180 days or more
d) Over 180 days

A cash credit or overdraft account shall be treated as NPA if the

account remains continuously out of order for

a) 90 days or more
a)
b) Over 90 days
c) 180 days or more
d) Over 180 days

55
 Points to be considered while classifying an account as NPA is

a) Available security d)
b) Net worth of borrower
c) Net worth of guarantor
d) None of above

On classification of account as NPA, income reversal should be

made for

a) Unrealized interest
b) Unrealized commission d)
c) Unrealized fee
d) All of above

56
 An account is exempted from being NPA if it guaranteed by

a) State Government
b) Central Government b)
c) Both of above
d) None of above

An account is NPA if renewal is pending for :

a) More than 60 days

c)
b) More than 90 days
c) More than 180 days
d) None of above

57
 An account may be directly classified as Doubtful if value of
security has eroded by more than :

a) 25% b)
b) 50%
c) 75%
d) None of above

An account may be directly classified as Loss if value of

security has eroded by more than :

a) 40%
c)
b) 50%
c) 90%
d) None of above
58
 In case of a consortium account, the account is irregular for over 90
days in the books of the lead bank. Accordingly,

a) The account will be NPA with lead bank only a)

b) All facilities with all member banks will be NPA
c) The account will remain standard as security
is sufficient
d) None of above

The following account can not be restructured “

a) Standard
d)
b) SMA-2
c) Doubtful
d) Loss

59
C
 The maximum times a loan can be downgraded or upgraded
during a year is

d)
a) 1
b) 2
c) 5
d) No limit

Banks can not restructure a loan account with

a) Prospective effect
b) Retrospective effect b)
c) Immediate effect
d) No restrictions

60
 A credit card account will be treated as NPA if

a) Full amount is not paid within 90 days from the current

statement date
b) Full amount is not paid within 90 days from the next
statement date
c) Minimum amount as required to be paid as per the
statement is not paid within 90 days from the due date
d) NPA norms do not apply on credit cards

c)
IRAC is an abbreviation for :

a) Income Recognition and Asset Classification

b) Income recovery and Asset Classification
c) Income recovery at cost a)
d) None of the above

61
 A sub standard asset is one which has been classified as NPA
for a period exceeding :

a) 24 months d)
b) 36 months
c) 12 months
d) None of above

A doubtful asset is one which has been classified as NPA for a

period exceeding :

a) 24 months
d)
b) 36 months
c) 18 months
d) 12 months

62
 A provision of ……. % should be made on the unsecured portion
of the doubtful assets

d)
a) 5%
b) 25%
c) 50%
d) 100%

Loans granted for long duration crops will be treated as NPA if

the principal or interest thereon remains overdue for :

a) Three crop seasons beyond due date

b) Two crop seasons beyond due date
c)
c) One crop seasons beyond due date
d) Five crop seasons beyond due date
63
 Concurrent audit system was formally introduced by RBI based on
the recommendations of

a) Naik Committee
c)
b) Goiporia Committee
c) Ghosh Committee
d) A C Shah Committee

As per the RBI circular, concurrent audit at branches of a bank

should cover atleast

a) 60% of advances and 30% of deposits of the bank

b) 50% of advances of the bank d)
c) 50% of deposits of the bank
d) 50% of advances and 50% of deposits of the bank

64
 Legal audit is mandatory for accounts with total credit exposure

a) exceeding Rs 1 crore c)
b) Rs 3 crore and more
c) Rs 5 crore and more
d) exceeding Rs 5 crore

The main objective of the concurrent audit is :

a) To examine the transactions with its occurrence or as near

thereto as possible
b) To ensure that all prescribed guidelines are being followed
c) To ensure on the spot rectification to the extent possible
d) all of the above
d)
65
 Duplicate keys of Cash Safe and Strong Room are generally kept
with –
(i) Branch in charge (ii) In custody of Joint Custodians (iii) Any
nearby branch

a) (i)
b) (ii) d)
c) (i) or (ii)
d) (iii)

Verification of cash by Auditors, should involve –

(i) An element of surprise, (ii) Signing in the Cash Book (iii)
Checking for Soiled / Mutilated Notes (iv) Checking the cash-in-
hand with that as per Cash Book / GL.

a) (i) & (iii) d)

b) (i), (iii) & (iv)
c) (i)
d) All of the above

66
 In case of counterfeit currency, what procedure bank is supposed to
follow –
i) Return the currency notes to the customer
ii) Destroy the currency notes
c)

a) i)
b) ii)
c) None of the above
d) Any one of the above

Cash Movement’ register contains details of which the following -

a) Movement of Cash between the Cash Safe and the Teller
b) Movement of Cash between the Chest and the branch
c) Movement of Cash between the branch and the Customer
d) Movement of Cash between the Chest and the RBI
a)

67
 In case of counterfeit currency, FIR is required to filed in case of
detection of

a) 1 or more piece in a single transaction

d)
b) 3 or more piece in a single transaction
c) 4 or more piece in a single transaction
d) 5 or more piece in a single transaction

Counterfeit currency is required to preserved for a period of

a) 2 years
b)
b) 3 years
c) 4 years
d) 5 years

68
 “Clean Note Policy” does not cover which of the following –

a) To use bands instead of staple pins c)

b) To tender soiled notes to the Reserve bank

c) Customers should stop writing of any kind on watermark window of
bank notes.
d) To provide exchange facility to members of public all over the country

Surprise physical verification of cash-in-hand shall be undertaken by –

a) Joint Custodians of Cash

b) An independent officer from the branch
c) Joint Custodians of Cash and an independent officer from the branch
d) Anyone of (a), (b), (c)
b)

69
 Nomination can not be extended in favor of

a) An illiterate d)
b) A minor
c) A senior citizen
d) None of above

Nomination is not available for accounts in

a) Individual capacity
d)
b) HUF
c) Partnership firms
d) b and c

70
 Credit to FCRA Account can only be by way of

a. INR Amount received from Resident Indian

b. Amount received from Foreign Source whether in INR or

Foreign Currency

c. Foreign Currency Amount received from Resident Indian

d. Any amount from any source approved by Head Office of

Bank

b)

71
 A nominee can be
a)
a) An individual
b) HUF
c) Firm
d) All of above

In case of faulty ATM transaction, the customer is to be

reimbursed within
c)
a) 3 days of complaint
b) 5 days of complaint
c) 7 days of complaint
d) 10 days of complaint

72
 A joint account can be opened by maximum

a) 2 persons d)
b) 3 persons
c) 4 persons
d) No limit

Current deposits are not entitled to

d)
a) Cheque books
b) Statements
c) Customer service
d) Interest

73
 A minor who wants to make a nomination in favour of his sister
is
b)
a) Allowed to nominate
b) Not allowed to nominate
c) Allowed to nominate with the consent of his mother
d) No restriction

Signature on the nomination form are to be witnessed by :

a) One witness
b) Two witness c)
c) Not required
d) As per the requirement of bank

74
 Interest in Savings Bank Account Balance is computed on

a. Balance as on the last date of Month c)

b. Minimum Balance in the last week of the month
c. Daily closing Balance
d. Minimum Balance between 10th Day and Last Day of the
month

A note with names written thereon will fetch :

a. Full value a)
b. Half value
c. Nil value
d. Depending upon Bank where it is deposited

75
 Under DICGC, the deposits of the customer of a member bank
is secured upto

a) Rs 50,000
b)
b) Rs 100,000
c) Rs 300,000
d) Rs 500,000

Finacle, FlexCube, BaNCS are names of

b)
a) Operating System
b) Core Banking System
c) Antivirus Software
d) Utility Software

76
 Which one of the following is not eligible to open a Savings Bank
account :
a) A company registered under section 8 of the Companies
Act 2013
b) A Cooperative Society registered under Cooperative
Societies Act
c) A HUF
d)
d) None of above

Minimum period for which an FDR account can be opened is

a) 7 days
b) 14 days
c) days
d) 1 year a)

77
 Limit for reporting the cash shortage detected by the Auditors
as fraud is more than Rs.

a) 1000/- b)
b) 5000/-
c) 10000/-
d) None of above as cash shortage is not considered as fraud

What is nomination
a) It is a process of appointing legal heir by the depositor
b) It is a part of will of Depositor
c). It confers right to the nominee to receive payment of a deposit
after death of depositors
d) A facility extended by Govt. c)

78
 TDS is applicable on interest on deposit in

c)
a) FCNR account
b) NRE account
c) NRO account
d) All of above

 In case of safe deposit locker, the relationship between bank

and customer is

a) Agent, Principal
b)
b) Lessor, Lessee
c) Creditor, Debtor
d) None of above

79
 Banks should preserve details of suspicious transactions for

a) A period of 2 years from the date of transaction

b) A period of 3 years from the date of transaction
c) A period of 5 years from the date of transaction
d) A period of 10 years from the date of transaction d)

Which of the following is correct

` a) CTR is to be filed within 15 days from the date of transaction

b) STR is to be filed within 7 days of the transaction
c) STR is to be filed within 7 days of the reaching to the conclusion
that it is a suspicious transaction
d) All of above c)

80
 What is bank supposed to do in case of having some suspicion
about an account
d)
a) Should stop all the transactions
b) Permit only debit transactions
c) Permit only credit transaction
d) File an STR while continuing the transactions

Customer Acceptance Policy; Customer Identification Procedures;

Monitoring of Transactions; and Risk Management are the
elements of _____

a) The Bankers Book Evidence Act, 1891 b)

b) Know Your Customer
c) Banking Norms
d) None of the above

81
 Under PMLA Act 2002, the banks are required to keep records
pertaining to identity of customer after the termination of
relationship for a period of

a)
a) 5 years
b) 7 years
c) 10 years
d) 15 years

Partial freezing involves freezing of :

a)
a) Debit transactions in the account
b) Credit transactions in the account
c) Both transactions in the account
d) Operations are allowed

82
 In case of high risk customers, updation of KYC is required in

a) 2 years
b) 8 years a)
c) 10 years
d) 15 years

For partial freezing of accounts, the period of notice by bank

to the customer is
b)
a) 1 month
b) 3 months
c) 6 months
d) 9 months
83
 STR (Suspicious Transaction report ) is submitted by the
Banks to

a) Police
b) CBI d)
c) RBI
d) FIU

Which of the following customer does not fall under low risk
category as per the KYC guidelines :

a) Salaried employees
d)
b) Government departments
c) Government organizations
d) NGO

84
 Banks are not allowed to open foreign students account
without RBI approval in case of :

a) Bangladesh Nationals d)
b) Pakistan Nationals
c) Bhutan National
d) (a) and (b)

Total credit during one year in a small account should not be

a) Rs. 50000/- or more

b) Rs 100000/- or more
c)
c) More than Rs 100000/-
d) More than Rs. 500000/-

85
 The balance in small account should not at any time during the
year be

a) Rs 25000/- or more c)
b) Rs 50000/- or more
c) More than Rs. 50000/-
d) More than Rs 100000/-

The following is not allowed to be credited to a small account

a) Sale proceeds of shares

b) Business receipts
c)
c) Foreign remittance
d) All of above

86
 Under Insolvency and Bankruptcy Code , the time limit for
completion of resolution process is

a) 90 days further extended upto 90 days

b) 90 days further extended upto 180 days
c) 330 days c)
d) 180 days further extended upto 90 days

Under Insolvency and Bankruptcy Code , the voting rights in

Committee of Creditors is with

a) Operational Creditors
b)
b) Financial Creditors
c) Insolvency Professional
d) All of above

87
 SARFAESI ACT is not applicable on accounts where bank’s
dues do not exceed Rs. :

a) 10,000/- c)
b) 50,000/-
c) 100,000/-
d) 500,000/-

Under SARFESI Act, the bank is required to reply the objection ,

if any, received from the mortgagor within :
a)
a) 15 days
b) 30 days
c) 60 days
d) 90 days

88
 Equitable mortgage in respect of an immovable property of a
company has to be registered with :

a) ROC
b) CERSAI
d)
c) RTO
d) (a) and (b)

Under SARFAESI Act,2002, a minimum time of ....... days is to

be given to the borrower / guarantor after issuing demand
notice under Section 13(2)
a) 90 days
b) 365 days d)
c). 30 days
d) . 60 days

89
 When any bank or financial institution creates a charge against
property, with which authority the transaction will have to be
registered under the SARFAESI Act, 2002?

a. With the Central Registry.

b. With the ROC.
c. With the Registrar of Assurances within whose jurisdiction
the property lies.
d. With the Reserve Bank of India. a)

90
 When the provisions of SARFAESI Act, 2002 can be invoked :

a. When the bank feels that it is necessary for the recovery at

any time.
b. When the RBI directs to do so. d)
c. When there is default in repayment by the borrower.
d. When there is default in repayment and the bank declares the
account as NPA.

The power of sale without intervention of the Court is given to

the mortgagor in the case of
a. Equitable mortgage
b. English mortgage b)
c. Simple mortgage
d. All of above

91
 Banks do not receive any interest on investment in

a) SLR securities
b) CRR b)
c) Treasury bills
d) Certificate of deposits

Refund of unused stamp can be claimed within…. months of

delivery

a) One month c)
b) Three month
c) Six months
d) Can not be refunded

92
 Two parallel lines across the cheque is called

a) Endorsement d)
b) Transfer
c) Assignment
d) Crossing

A banker on whom a cheque is drawn by a customer is

b)
a) Collecting banker
b) Paying banker
c) Advising banker
d) Confirming banker

93
 Courtesy amount in a cheque stands for :

a)
a) Amount in figures
b) Amount in words
c) Lower of figures and words
d) None of above

The Account payee crossing is defined U/s

a)13 of the NI Act d)

b)130 of the NI Act
c)130 of the RBI Act
d) None of the above

94
 A cheque presented for payment is written in English but the
name of the payee is written in Hindi . The Bank is required to

a) Return the cheque

b) Payee should be advised to get it authenticated from
the drawer
c) Pay the cheque
d) Pay the cheque if name of payee is authenticated by the
drawer c)

X gives a cheque of Rs.7500 to Y . The balance in the account was

Rs. 7000 disclosed by the staff of Bank to Y. Y deposited Rs. 500 in
the account of X and got the cheque passed . As such :
a) This a payment in due course and X has no legal remedies
b) X can not ask for refund
c) X can ask for refund as account information was illegally
disclosed to Y
d) Bank is not liable
c)

95
 An account is opened on 1st January 2019. The customer
has issued a cheque on 10th January 2019 which is dated
15th December 2018. On presentation , the bank will

a) Pay the cheque

b) Return the cheque a)
c) Contact the account holder
d) None of the above

As per RBI guidelines, all cheques above Rs…….are required

to be examined under Ultra Violet Lamp :
a) Rs 10000
b) Rs 100000 c)
c) Rs 200000
d) Rs 500000

96
 A cheque returning memo is attached with the returned cheque
to comply with the provisions of

a) The Negotiable Instruments Act

b) Banking Regulation Ac d)
c) RBI Act
d) RBI clearing house rules

Bank has to return a dishonoured cheque within

a) 24 hours
b) 36 hours
c) 48 hours a)
d) Immediately

97
 A customer will not be issued a cheque book in case of return
of cheques for insufficient funds during a financial year if
amount of cheque and number of times cheques returned are

a) Rs 50 lacs and more and 4 times

b) Rs 100 lacs and more and 4 times
b)
c) Rs 500 lacs and more and 2 times
d) No such limit

PAN is required where cash deposit in account during a day is

a) Rs 50000 or more
b)
b) More than Rs 50000
c) Rs 100000 or more
d) More than Rs 100000

98
 What is the minimum amount of remittance through RTGS :

a) Rs 50000/-
b) Rs 100000/- c)
c) Rs 200000/-
d) Rs 500000/-

The maximum amount of issue of demand draft against

acceptance of cash is Rs :

a) 19999/- c)
b) 20000/-
c) 49999/-
d) 50000/-

99
 As per RBI guidelines, demand drafts can be paid in cash if
amount of DD is :

a) Upto Rs 19999/-
a)
b) Upto Rs 20000/-
c) Upto Rs 49999/-
d) Upto Rs 50000/-

100
 Banks have to undertake review of their Investment policy as on
each

a) 31st March and 31st December c)

b) 30th June and 30th September
c) 30th September and 31st March
d) 30th September and 31st December

Copy of the review report has to be put up before the Board by

a) May 15th and November 15th

b) July 15th and April 15th
c) October 15th and January 15th d)
d) April 30th and October 31st

 :

101
 Under section 19(2) of the Banking Regulation Act 1949,
no banking company can hold shares in any company
exceeding :

a) 30% of the reserves of the company

b) 30% of its own paid up capital
c) 30% of paid up capital and reserves of the company
d) 30% of its own paid up capital and reserves

d)

102
 Subsidiary General Ledger (SGL) is maintained by :
b)
a) Investment committee of the Bank
b) Public debt office of RBI
c) Central accounts office of the Bank
d) Branches holding investments

Investments held under Held to Maturity category

Generally not to exceed :

a) 10% of total investments of the bank

b) 20% of total investments of the bank c)
c) 25% of total investments of the bank
d) 50% of total investments of the bank

103
 Securities Held for trading (HFT) are required to be sold within

a) 15 days
d)
b) 30 days
c) 60 days
d) 90 days

In case of permanent diminution, securities held under HTM

category have to be valued at :

a) Cost or market price which ever is lower

c)
b) At acquisition cost
c) At marked to market price
d) As per the decision of investment committee of the Bank

104
 Permanent diminution implies where :
d)

a)The company has defaulted in repayment of its debt

b)The loan of the company has been restructured
c)Net worth has been reduced by 25% or more
d)All of above

Securities held under Available for Sale (AFS) have to be valued

atleast on

a) Fortnightly basis
b) Monthly basis c)
c) Quarterly basis
d) Annual basis

105
 Securities held under Available for Sale (AFS) have to be valued at

a) Acquisition cost
b) Lower of cost or market price
c)
c) Marked to market basis
d) Any of above

Securities held under Held for Trading (HFT) have to be valued

atleast on

a) Fortnightly basis
b) Monthly basis b)
c) Quarterly basis
d) Annual basis

106
 Investment policy is required to be approved by :

a)
a) Board of Directors
b) Investment Committee
c) Audit Committee
d) Any of the above

107
 Call money is money lent by

a) Bank to a finance company

b) Bank to a company c)
c) Bank to Bank
d) Company to a Bank

Call money is lent for

a)
a) Overnight
b) Three days
c) Seven days
d) Fourteen days

108
 The following are not eligible to subscribe for Treasury bills

a) Central Government
b) State Government
d)
c) Banks
d) None of above

Treasury bills are issued by :

a) Government of India a)
b) State Governments
c) RBI
d) Corporates

109
 Commercial papers are issued by :
c)
a) RBI
b) Government of India
c) Corporate
d) Banks

Minimum issue size of commercial papers is

a) Rs 1 lac b)
b) Rs 5 lacs
c) Rs 50 lacs
d) Rs 100 lacs

110
 Certificate of Deposits are issued by :
d)
a) RBI
b) Government of India
c) Corporate
d) Banks

Minimum issue size of Certificate of deposits for a single

subscriber is
a)
a) Rs 1 lac
b) Rs 5 lacs
c) Rs 50 lacs
d) Rs 100 lacs

111
 A Non Performing Investment (NPI) is where b)

a) Interest/Instalment remains unpaid for 90 days or more

b) Interest/Instalment remains unpaid for more than 90 days
c) Interest/Instalment remains unpaid for 180 days or more
d) Interest/Instalment remains unpaid for more than 180 days

In case of any credit facility availed by a company becomes

NPA, the investment in such company will become NPI
except investment in

a) Equity shares
b) Preference shares
c) Convertible debentures b)
d) All of above

112
 The following investment will not be classified as NPI

a) Bonds issued by State Government

b) Bonds issued by Central Government
c) Equity shares of a listed company b)
d) Commercial Papers

Which of the following will be marked as Non-Performing Investments (NPI)?

a) Unlisted equity shares wherein the audited financials are not available
after completion of six months from the end of financial year;
b) Cumulative Preference shares wherein the dividend on preference
shares is due for more than 90 days
c) Listed Equity shares wherein the Term Loan granted to the issuer is
NPA in the books of account of the bank.
d) All the above

d)

113
 Shifting of securities from HTM to AFS/HFT is generally permitted:

a) Once in a year at any time during the year. b)

b) Once in a year and at the beginning of the year
c) As and when desired by bank
d) Not permitted

A bank has sold of securities classified under HTM and earns net profit of
Rs.100 crores.The current rate of income tax is presumed to be 30%. Which of
the following statement is correct as regards accounting treatment to be given
by the bank?

a) An amount of Rs.70 crores will be credited to Capital Reserve Account with

no effect to be given in Profit & Loss Account
b) The amount of Rs.100 crores would be credited to Profit and Loss and
Rs.100 crores will be appropriated to Capital Reserve Account
c) The amount of Rs.100 crores would be credited to Profit and Loss account
and Rs.70 crores will be appropriated to Capital Reserve Account.
d) The amount of Rs.100 crores would be credited to Profit and Loss Account

c)

114
 Which of the following statement is correct w.r.t scheduled
commercial bank which enters into a short sale of securities?

a) A bank can enter into a sale of securities only if the bank does
not hold any stock of securities;
b) A bank can enter into a short sale of securities only after
obtaining prior approval of Reserve Bank of India;
c) A bank can enter into a short sale of securities even if the
bank holds stock of the same securities;
d) A bank can enter into a short sale of securities only after
obtaining prior approval of Clearing Corporation of India(CCIL).

a)

115
 Every bank is required to maintain at the close of business every
day, a minimum proportion of their Net Demand and Time
Liabilities as liquid assets in the form of cash, gold and un-
encumbered approved securities which is known as

a) CRR
b) Repo Rate d)
c)Reverse Repo Rate
d) SLR

Held to Maturity (HTM), Held for Trading (HFT) and Available for
Sale (AFS) are classification of

b)
a) Advances Accounts
b) Investments
c) Fixed Assets
d) Demand & Time Liabilities
Tre
116
 When banks have any shortage of funds, they can borrow it
from Reserve Bank of India. The rate at which the RBI lends
money to commercial banks is called

a. Reverse Repo Rate b)

b. Repo Rate
c. Standard Lending Rate
d. LIBOR

When banks have surplus funds, they can invest with Reserve
Bank of India. The rate at which the investment with RBI is
made is called

a)
a. Reverse Repo Rate
b. Repo Rate
c. Standard Lending Rate
d. LIBOR

117
 Which of the following method is permitted to be followed for
valuation of securities of a bank

d)
a. Random Marking Method
b. Simple Average Method
c. Weighted Average Method
d. None of the above

Loss on Sale of securities under HTM category will be directly

a)
a. debited to profit and loss account
b. debited to Capital Reserve Account
c. debited to Investment Reserve Account
d. debited to Investment Fluctuation Account

118
 Which of the following statements is correct:

a. In case of HTM securities, premium in book value over face

value is amortised over the residual period
b. In case of HTM securities, discount in book value over face
value is amortised over the residual period
c. In case of HTM securities, premium or discount in book value
over face value is accounted for on the date of maturity of the
security
d. In case of AFS securities, the depreciation reserve is created
of an amount equivalent to premium in book value over face
value

a)

119
 In case of bouncing of SGL form , the maximum penalty by
RBI on defaulting Bank per instance is

a) Rs 100000 b)
b) Rs 500000
c) Rs 800000
d) Rs 1000000

An overall exposure of Bank to capital market is restricted to :

a) 20% of its net worth b)

b) 40% of its net worth

c) 60% of its net worth
d) 80% of its net worth

120
 Within the above overall exposure of Bank to capital market ,
Bank’s investment in shares, convertible debentures etc are
restricted to
a)
a) 20% of its net worth
b) 40% of its net worth
c) 60% of its net worth
d) 80% of its net worth

Banks are not permitted to invest in non SLR securities with

maturity of less than :
a) 1 year
b) 2 years a)
c) 3 years
d) 5 years

121
 Banks investment in unlisted non SLR securities not to exceed
…..of its total investment in non SLR securities as on March 31st
of the previous year :

a) 5%
b) 10%
b)
c) 20%
d) 40%

Certificate of deposits are issued for minimum__ days and

maximum___ days :

a) 7 days and 1 month b)

b) 7 days and 12 months
c) 30 days and 6 months
d) 45 days and 6 months

122
 The following is not eligible to issue Certificate of deposit:

d)
a) A Cooperative Bank
b) A Regional Rural bank
c) A Financial Institution
d) All of above

To be eligible for issue of commercial paper, the tangible

net worth of the company as per the latest audited
Balance Sheet should not be less than Rs.:
a) Rs 1 crore
b) Rs 2 crore d)
c) Rs 3 crore
d) Rs 4 crore

123
 The minimum CRISIL credit rating required for issue of
Commercial paper must be :
a) P-1
b) P-2
b)
c) P-3
d) P-4

The maturity period of treasury bills issued by Govt of India is

a) 14 and 91 days
b) 91 and 182 days
c) 14 and 182 days d)
d) 91, 182 and 364 days

124
 When Repo rate is reduced by RBI, it leads to :

a) Reduction in cost of borrowing to the borrowers

b) Increase in cost of lending to the borrowers
c) Reduction in cost of borrowing by banks from RBI c)
d) Increase in cost of borrowing by banks from RBI

In case of change in CRR, the position of liquidity of Indian

Bank is :

a) Increased on reduction of CRR

a)
b) Increased on increase of CRR
c) Remains unchaged on increase of CRR
d) Remains unchanged on decrease of CRR

125
 As per the third schedule of Banking Regulation Act 1949, the
Banks are required to disclose the following investment outside
India :

a) Shares d)
b) Debentures
c) Bonds
d) Government Securities

The securities under HTM may include investment in long term

bonds issued by :
a) Finance company
b) NBFC d)
c) Companies engaged in rural development
d) Companies engaged in infrastructure activities
126
 What is the extent of Countercyclical provisioning Buffer, as
per Basel 3 norms?

a) as decided by banks b)
b) 0-2.5% of Risk weighted Assets
c) at least 22.5 % of Total Assets
d) none of the above

Which is not a type of Risk as per Basel norms?

a) credit c)
b) market
c) liquidity
d) operational

127
 Under BASEL III norms, which of the following items appearing in
the Balance sheet of a bank are required to be deducted from the
common Equity Tier I Capital of the Bank?

a) Share premium of issue of Perpetual cumulative Preference

shares
b) Goodwill
b)
c) Loss Assets
d) All of the above

BASEL III norms will be fully implemented in India to scheduled

commercial banks in India w.e.f:

a) January 01,2013
b) March 31,2019
b)
c) March 31,2014
d) April 01, 2013

128
 Which of the following does not qualify for Tier I / Additional Tier I/
Tier II capital?

a) Perpetual Non- Cumulative Preference shares

b) Investment Reserve Account
c)
c) Redeemable Non-Cumulative Preference Shares
d) Certificates of Deposits

As per Basel 111 norms, the capital adequacy ratio is calculated

for

a) Market risk
b) Operational risk d)
c) Market risk
d) All of above

129
 Under BASEL III norms, which of the following statements are
true?

a. DTA related to accumulated losses should be deducted from

common equity Tier I capital
b. Revaluation reserve should be considered as part of Tier II
capital at a discount of 55%
c. Floating provision on NPA can be considered for Tier II
capital
d. All the above

d)

130
 As per Basel 111 norms , Common Equity Tier 1 capital must be
---- % of the risk weighted assets :

a) 5.50%
a)
b) 7%
c) 9%
d) 11%

As per Basel 111 norms , the additional tier 1 capital must be

____% of the risk weighted assets

a) 1.50%
a)
b) 2.50%
c) 3.50%
d) 5.50%

131
 With reference to BASEL Norms, The ____ is designed to
ensure that banks build up capital buffers during normal times
(i.e. outside periods of stress) which can be drawn down as
losses are incurred during a stressed period.

a. Countercyclical Capital Buffer

b)
b. Capital Conservation Buffer
c. Leverage Ratio
d. Capital Adequacy Ratio

Capital adequacy ratio is computed based on:

a. Total demand and time liabilities
b. Risk weighted liabilities c)
c. Risk weighted assets
d. Net demand and time assets

132
 There are ----- pillars of Basel II

a) 3 a)
b) 4
c) 5
d) 6

Under Basel norms , following are elements of Tier - II Capital

a) Paidup Capital
b) Statutory Reserve d)
c) Free Reserves
d) None of the above

133
 NRE account can be opened as

a) Savings Bank account

b) Current Account d)
c) Term deposit
d) All of above

NRO account can be opened as :.

a) Savings Bank account

b) Current Account d)
c) Term deposit
d) All of above

134
 In case of exports, the export documents are required to be
submitted by the exporter to the bank within

a) 7 days c)
b) 14 days
c) 21 days
d) 28 days

Overdue export bills to be crystallized within …. Days from due

date :.

a) 7 days b)
b) 30 days
c) 40 days
d) 60 days

135
 TDS is deductible on interest payment in

a) NRO account
b) NRE Account a)
c) FCNR account
d) None of above

In case of NRE accounts, joint account can be opened by NRI

with :.

a) An Indian relative c)
b) A resident of India
c) NRIs
d) All of above

136
 RFC account can be maintained in foreign currency by

a) NRI
b) Resident in India
b)
c) Foreign National
d) All of above

Free repatriation of funds are allowed in :.

a) FCNR (B) account

b) NRE Account
c) NRO deposit
d)
d) a and b

137
 An Indian Bank’s account with a foreign Bank in foreign
currency is called :

a) NOSTRO account a)
b) Escrow Account
c) VOSTRO account
d) No of above

Packing Credit is allowed for a maximum period of :

a) 180 days
b) 270 days b)
c) 360 days
d) No limit

138
 Swift refers to :

a) Society for world wide interbank financial transaction

b) Society for world wide international financial c)
telecommuncation
c) Society for world wide interbank financial telecommunication
d) Society for world wide interbank financial transaction

Balances in NRO deposits are :

a) Freely repatriable c)
b) Repatriable subjected to RBI approval
c) Repatriable upto maximum USD 1 million per year
d) None of the above

139
 Which of the following transaction is exempted from submission
of Form 15CA/15CB :
b)

a) Remittance towards repatriation of sale proceeds

b) Remittance towards repatriation of NRE balance by NRI
c) Remittance towards repatriation of NRO balance by NRI
d) All of the above

Interest on FCNRB is linked to :

a) MCLR c)
b) Base Rate
c) Libor
d) Repo rate

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 LRS refers to

a) Lottery remittance scheme

b) Liberalized remittance scheme
c) Liberalized patriation scheme b)

d) Loan repatriation scheme

The maxmum amount permissible under LRS is :

a) USD 25000 per year

b) USD 125000 per year c)
c) USD 250000 per year
d) No limit

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 Which of the following statement is incorrect:

a) Only resident individuals are eligible to remit under LRS

b) Only non resident individuals are eligible to remit under LRS
c) Senior citizens are eligible to remit under LRS
d) LRS covers remittance made towards maintenance
of relatives living abroad b)

Letter of Credit (LC) is opened on behalf of :

a) Importer
b) Exporter
c) Importer’s bank
d) Exporter’s bank a)

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