ICICI Bank presents ‘Cardless Cash Withdrawal’ – Withdraw cash from ATM without a card

ICICI Bank has initiated ‘Cardless Cash Withdrawal’, a facility that permits its customers to transfer money from their account to anybody in India with a mobile number. The recipient can withdraw money anytime without using a debit card from ATMs of ICICI Bank all over India. The receiver can do this even without having a bank account of any bank.

Currently, electronic remittances are probable for only those with a bank account. Beneficiaries who don’t have a bank account can receive cash only via money order which is an expensive and time consuming course for remittances.

The ‘Cardless Cash Withdrawal’ service can be started by any ICICI Bank savings account customer (sender):

• ICICI Bank savings account customer (sender) logs into the Internet banking.
• Register the recipient’s name, mobile number and address.
• The sender receives a 4-digit verification code
• The recipient receives a 6-digit reference code, over SMS on his mobile.
• The recipient can now go and withdraw cash from any ICICI Bank ATM by entering the mobile number, cash amount along with the verification and reference code, within 2 days of the transaction.

This service can also be used by the ICICI Bank’s account holders to withdraw cash from their own accounts without using a debit card.

New Payment Gateway Integrated to e-Filing System; Indian Patent Office (IPO) becomes first IPO in the World to begin Real Time Transparency

Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India launched a new payment gateway integrated to the e-filing system of the Intellectual Property Office (IPO). This new facility will be dedicated to the working of the Indian Patent Office as International Searching Authority (ISA) and International Preliminary Examining Authority (IPEA) under the Patent Cooperation Treaty (PCT).

The new facility will facilitate payment by means of internet banking, credit cards or debit cards of more than 70 Banks as against internet banking of 2 banks previously. This will result in rise in online filing of forms for patent and trademarks by 25 to 75%.

Fresh initiatives:

Fresh office of IPO: This new facility will be dedicated to the working of the Indian Patent Office as International Searching Authority (ISA) and International Preliminary Examining Authority (IPEA) under the Patent Cooperation Treaty (PCT).

IP Expressions: First issue of IP Expressions, a technical magazine released. The magazine offers a stage for the officials of Intellectual Property Office (IPO) to share the experience acquired in the field of Intellectual Property. Initially it will start as a twice-a-year publication, the IP Expressions is likely to help the IP groups, researchers, scholars, academicians and public at large as a source of IP information.

Stock and Flow: This facility at present existing for trademarks has now been extended to patents also. Via this service the work occurring in the whole Patent office will be now open to the world. The stock and flow in the Patent Offices at various places is shown on a real time basis on the official website. IPO is the first amongst intellectual property offices throughout the world to attain this extreme transparency.

List of Public Sector Banks Head offices

S.NO	Bank Name	Head Office	Chairmen	Slogan
1	Allahabad Bank	Kolkata	Rakesh Sethi	A tradition of trust
2	Andhra Bank	Hyderabad	C.V.R RAjendran	Much more to do. With YOU in focus
3	Bank of Baroda	Mumbai	S.S. Mundra	India’s International Bank
4	Bank of India	Mumbai	V.R.Iyer	Relationships beyond Banking
5	Bank of Maharashtra	Pune	Sushil Muhnot	One Family One Bank
6	Canara Bank	Bangalore	R.K.Dubey	It’s easy to change for those who you love, Together we Can
7	Central Bank of India	Mumbai	Rajeev Rishi	Build A Better Life Around Us, Central to you since 1911
8	Corporation Bank	Mangalore	Sadhu Ram Bansal	Prosperity for all
9	Dena Bank	Mumbai	Aswini Kumar	Trusted Family Bank
10	Indian Bank	Chennai	T.M.Bhasin	Taking Banking Technology to Common Man, Your Tech-friendly bank
11	Indian Overseas Bank	Chennai	M.Narendra	Good people to grow with
12	Oriental Bank of Commerce	New Delhi	S.L.Bansal	Where every individual is committed
13	Punjab National Bank	New Delhi	K.R.Kamath	The Name you can Bank Upon
14	Punjab & Sind Bank	New Delhi	Jatinder Bir Singh	Where series is a way of life
15	Syndicate Bank	Manipal	Sudhir Kumar Jain	Your Faithful And Friendly Financial Partner
16	Union Bank of India	Mumbai	Arun Kaul	Good people to bank with
17	United Bank of India	Kolkata	Vacant	The Bank that begins with “U”
18	UCO Bank	Kolkata	Arun kaul	Honors Your Trust
19	Vijaya Bank	Bangalore	V. Kannan	A friend You can Bank Upon
20	IDBI Bank Ltd	Mumbai	M.S. Raghavan	Banking for all; “ Aao Schein Bada”
21	Bharatiya Mahila Bank	New Delhi	Usha Ananthasubramanyan	Empowering women, Empowering India
State Bank Group
1	State Bank of India	Mumbai	Arundhati Bhattacharya	The Nation banks on us; Pure Banking Nothing Else; With you all the way
2	State Bank of Bikaner & Jaipur	Rajasthan	Arundhati Bhattacharya
3	State Bank of Patiala	Punjab	Arundhati Bhattacharya	Blending Modernity with Tradition
4	State Bank of Hyderabad	Hyderabad	Arundhati Bhattacharya	You can always bank on us
5	State Bank of Mysore	Bangalore	Arundhati Bhattacharya	Working for a better tomorrow
6	State Bank of Travancore	Thiruvananthapuram	Arundhati Bhattacharya	A Long Tradition of Trust

CROP INSURANCE

Crop insurance is an insurance arrangement aiming at mitigating the financiallosses suffered by the farmers due to damage and destruction of their crops as a result of various production risks. The vast majorities of India's  about116 million farms cultivates rainfed crops and are particularly vulnerable to the vagaries of the Indian monsoon. In this context, agricultural risk management products, particularly for the small and marginal farmers, are of critical importance. In order to address some of the shortcomings and improve the scope and contents of Compre hensive Insurance Scheme replacing the Comprehensive Crop Insurance Scheme (CCIS) which was in operation in the country since1985.Government of India expre ssed its intentions to launch a new crop insurance scheme during 1998-99 budget speech. A broad-based National Agricultural Insurance Scheme (NAIS) or Rashtriya Krishi Bima Yojana (RKBY) was introduced with effect from the Rabi  season of 1999-2000. Thes cheme was designed to cover all the farmers irrespective of the size of holding and both borrowers and non-borrowers. NAIS provides for greater coverage of crops and sum insured when compared with Comprehensive Insurance Scheme. The new crop insurance scheme was intended to address the issue of financial viability by raising the premium to 4 per cent for food crops and still higher premium for cash crops like sugarcane, potato, groundnut, etc. The government also  set-up a separate subsidiary company, Agriculture Insurance Compa ny of India Ltd., under GIC to operate the sche me and give it freedom to alter or modify insurance charges to make the venture internally viable.

Objectives of National Agricultural Insurance Scheme (NAIS):
i. To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, Natural Fire and Lightening, Storm, Hailstorm, Cyclone, Typh oon, Tempest, Hurricane, Tornado Flood, Inundation and Landslide, Drought, Dry spells,pests & diseases so as to restore their credit worthiness for ensuing season.
ii. To encourage the farmers to adopt progressive farming practices, high value in-puts and higher technology in Agriculture.
iii. To help stabilize farm incomes, particularly in disaster years.

States participating in the scheme:
National Agricultural InsuranceScheme is being implemented in 23 States and UTs

Crops covered under the scheme:
i. Food Crops (Cereals, Millets & Pulses): Paddy,Wheat, Jowar, Bajra, Maize, Ragi, Green gram, Horse gram
ii. Oilseeds: Groundnuet,Sunflower,Soya bean, Castor, Sesamum
iii. Annual Commercial/ Annual Horti cultural crops: Potato,Onion, Ginger, Turme ric,Banana, Pineapple, Jute, Tapioca, Cumin, Coriander, Methi etc.
The crops are selected for insurance if the past yield data for 10 years are available, and the State Govt agrees to conduct requisite number of Crop Cutting Experiments (CCEs) during the proposed season. At present there are 35 different crops during Kharif and 30 different Rabi season are being insured under National Agricultural Insurance Scheme in the country.  

Who is eligible to be covered under the scheme?
Ans: All farmers growing insurable crops and availing Seasonal Agricultural Operat ions (SAO) loans from Banks / PACS are compulsorily covered under the Scheme by the Banks/ PACS, whereas the non-borrowing farmers growing insurable crops can also avail the benefit of the Scheme by submitting prescribed proposal forms at the nearest Banks/ PACS.
Claims: The claims are released to banks and the banks in turn credit the amount in the account of the beneficiary farmers and display the particulars of beneficiaries on their notice board.

How Indemnity claims are worked out?
Ans: It is  as per the following formula:
Shortfall in yield------- X Sum Insured for the farmer Threshold Yield
(Shortfall = Threshold Yield - Actual Yield for the Defined Area).
The scheme is optional for States/UTs.  Since inception of the Pilot, 33.26 lakh farmers have been covered over an area of 36.27 lakh hectares insuring a sum amounting to Rs.8063.73 crore. The claims amounting to about Rs. 234.27 crores have become payable against the premium of about 824.38 crore benefiting about 2.29 lakh farmers (uptoKharif 2012 season).

What are the benefits expected from the Scheme?
Ans : This Scheme is expected to
1. Be a critical instrument of development in the field of crop production,providing financial support to the farmers in the event of crop failure.
2. Encourage farmers to adopt progressive farming practices and higher technology in Agriculture.
3. Help in maintaining flow of agricultural credit.
4. Provides significant benefits not merely to the insured farmers, but, to theentire community directly and indirectly through spillover and multiplier effects in terms of maintaining production & employment.
5. Streamline loss assessment procedures and help in building up huge andaccurate statistical base for crop production.

What is the Unit of Insurance?
Ans : The scheme operates on the basis of Area Approach i.e. defined areas for each notified crop for widespread calamities and individual assessment is done on experimental basis for localised calamities, such as, hailstorm, landslide, cyclone and flood in certain pre-notified areas. The size of unit area varies from State to State and crop to crop. Presently, the defined area is Block/ Mandal/ Taluka/ Patwarihalka/ Nyayapa nchayat/ Gram anchayat/ Village, etc.

What' s amount of sum insured under NAIS?
Ans : A. For loanee farmers:-
i. Compulsory coverage: The amount of crop loan availed for the notified crop is the minimum amount of sum insured covered on compulsory basis.
ii. Optional Coverage: If the loanee-farmer so wishes he may insured his crop for a higher Sum Insured i.e, upto the value of Threshold Yield (i.e., guaranteed yield) which is called normal coverge even go for addtional coverage upto 150% value of average yield in the notified area. However, for additional coverage, the farmer has to pay premium at actuarial rate as notified by the State Government. The value of Sum Insured in such cases is arrived at by multiplying the threshold yield/ average yield with the latest available Minimum Support Price (MSP) announced by the Govt. or the market price provided by the State Govt. in case the MSP is not announced.
B. For Non-loanee farmers:  Coverage at normal rates of premium is available upto the value of ThresholdYield . Additional coverage upto 150% of the value of Actual Yield can be obtained by payment of premium at actuarial rates. Note : It may however be noted that in case of annual commercial and horticultural crops, only actuarial rates of premium are charged at all the slabs of sum insured.  

How much premium a farmer has to pay to get the insurance cover?
Ans : A. For Kharif crops: Premium is 3.5 % of Sum insured for all Oilseed crops andBajra and 2.5% for all others foodcrops including pulses
B. For Rabi crops: Premium rates are 1.5% for wheat and 2% for all other foodcrops including pulses and oilseeds.
 However, of the above flat rates and the actuarial rate whichever is lower shall apply.
C. For Annual Commercial and Horticultural crops:Atuarial premium rates are charged.
D. The premium for Small & Marginal farmers is subsidised to the extent of 10% which is shared by the State Govt. and Govt. of India.

Does a non-loanee farmer need to produce some documents for obtaining insurance cover?
Ans : The non-loanee farmer has to produce a proof (copy of land pass book / 7/12
extract / land revenue receipt etc.) to prove that he / she is the owner of theland. In case of sharecroppers and tenant farmers (who are not availing crop loan), a proof showing crop sharing / tenancy arrangement need to be produced.

How can a farmer get insurance coverage?
Ans: All loanee farmers automatically and get compulsorily covered under this Insu rance Scheme through the PACS/Bank branches, as and when crop loans for insured crops are disbursed to them. All non-loanee farmers desirous of availing insurance coverage should contact nearest Bank Branches before the stipulated time frame with a proposal for insurance. Non-loanee farmer should have a Bank A/c with the bank and pay the requisite premium to get insurance coverage.

Are crop loans disbursed through Kisan Credit Cards (KCCs) eligible for insurance coverage under the NAIS?
Ans: Crop loans disbursed/withdrawn through KCCs are also eligible for coverage as per the terms and conditions applicable to the regular crop loans.
When and how, the claims are settled under NAIS?
Ans: In case of widespread calamities leading to damage and loss of crops, claims are settled on area approach basis. Any insured crop in a notified area recording lower actual yield than the guaranteed yield as per the crop estimation surveys conducted by the state govt., shall automatically become eligible for compensation/ claim. The shortfall in yield is determined for each crop and is the difference between the guaranteed yield and the current season's actual yield. Shortfall % is determined by expressing the shortfall as a proportion of guaranteed Yield. Claim is then computed by multiplying the sum insured with the shortfall %. Therefore no claims would be admissible/payable in case the current season's actual yield is more than the threshold yield. Applicable amounts of claims so arrived at are routed to the farmers through the banks in case of those farmers who are covered through the banks.Even in case of non-loanee farmers who approach Agriculture Insurance Company directly for insurance coverage, the claim amounts are paid by way of cheques or throughdesignated bank branches such that claim amounts get credited to their accounts. The claim assessment and payment would be done after receipt of the requisite yield data from the concerned agencies. The methodology of claim assessment based on individual appro ach shall be intimated to all concerned upon finalising the areas and modalities.

Whether insured farmers whose crops are damaged need to intimate crop losses to bank  to be eligible for claim?
Ans: In case of "Area approach", the farmers need not intimate crop losses toBank. The crop losses if any or reduction in yield as compared to Guaranteed yield shall be reflected in Crop Estimation surveys and the shortfall in yield, if any shall be paid as claim through the Bank. In case of areas notified for experimentation of individual loss assessment, the farmer need to intimate the crop loss within 48 hours with the local revenue/ agriculture dept.

What are the essential requirements before a farmer becomes eligible for claim under the Scheme?
Ans: The essential requirements are:
i) The farmer should have availed a crop loan for the insured crop. In case of non-loanee farmer, he should have submitted a proposal for insurance with requisite premium.
ii)The proposal/crop insurance Declaration with accurate and complete particulars should have been sent  by the Bank along with requisite premium.  iii) The State Govt. conducts requisite number of Crop Cutting Experiments for the insured crop in the insurance unit and submits the yield data  within the prescribed date.  iv) The yield data so submitted by the State Govt. shows short fall as compared to the Guaranteed yield.
Modified National Agricultural Insurance Scheme(MNAIS):
To improve further and make the scheme easier & more farmer friendly, a Joint Group was constituted by Government of India  to study the existing crop insurance schemes. Based on the recommendations of the Joint Group and view/comments of various stakeholders, aproposal on Modified National Agricultural Insurance Scheme (MNAIS) was prepared was approved for implementation on pilot basis in 50 districts during the remaining period of 11th Plan from Rabi 2010-11. The salient improvements made in MNAIS (over NAIS) are as under:
a) Actuarial premium with subsidy in premium ranging upto 75% to all farmers;
b) Only upfront premium subsidy is shared by the Central and State Government on 50:50 basis and all claims liability is on the insurance Company.
c) Unit area of insurance reduced to village/ village panchayat level for major crops.
d) Indemnity for prevented sowing/planting risk and for post-harvest losses due to cyclone (coastal areas); e) On account payment up to 25% of likely claims as immediate relief to farmers; f) Uniform seasonality discipline for loanee and non-loanee farmers;
g) More proficient basis for calculation of threshold yield; and minimum indemnity level increased to 70% instead of earlier 60%; h)The scheme is compulsory for loanee farmers and voluntary for non-loanee farmers;  i) Participation of private sector insurers for creation of competitive environment
for crop insurance. j) Setting up a catastrophic fund at the national level contributed by the central and the state government on 50:50 basis to provide protection to the insurance companies in the event of premium to claim ratio exceeds 1:5 at national level and failure to procure appropriate reinsurance cover at competitive rates;
k) National Agricultural Insurance Scheme is withdrawn from those area(s)/crop(s) where MNAIS is implemented.

- See more at: http://education.abn-andhrajyothy.com/crop-insurancebank#sthash.rpAANZQU.dpuf

SBI launches multi-currency international debit card

State Bank of India (SBI) in tie-up with MasterCard on Monday launched its first multi-currency international debit card to allow consumers to use a single card to pay in multiple currencies.

“To begin with, the prepaid debit card will enable customers to load four currencies – US dollar, euro, Great Britain pound and Singapore dollar. 

The multi-currency foreign travel card gives an option to load currencies of choice at SBI’s branch network.

At present, the card can be issued at an annual fee of Rs. 100 without any interchange fee to customers.

Customers will have to pay the traditional ATM withdrawal charges of $1.75 in the US, €1.5 in Europe, £1.25 in Britain and S$2 in Singapore.

The card is aimed at corporates and professionals, tourists and students travelling abroad and will be available at 100 SBI branches in four major cities.

Deposits

Dealing with Deposits and Credits is the principle function of banks. Deposits mean money accepted from public. Bank's deposits are classified as two types (a) Demand deposits and (b) Time deposits.

 Demand deposits: 
As name says the deposit is payable on demand either fully or partly as per the demand of customer. Bank pay returns to the deposits in the form of interest. These deposits are withdrawable as per the demand of customer through a cheque or draft or written order (withdrawal
slip). Demand deposits in the bank are deposits in saving and current account.
These are major sources of funds for banks.

Savings Account deposits: 
The main purpose of this account is to inculcate the habit of savings in public. Deposits in this
accounts are paid interest as per the guidelines of RBI, presently RBI has set 4% per annum is calculated on daily balances in the account and paid quarterly.
★ This deposit product of bank, savings account has a nomination facility. And customer
is allowed to withdraw funds whenever he wants through a cheque or draft or written order. Saving account also chargeable if the customer is failed to maintain Quarterly Average Balance (QAB) and if the cheques are bounced for not having balance in the account.
★ As per new guidelines of RBI zero balance account also can be opened which is known as no frill account. Recently, Prime Minister Narendra Modi has launched a scheme 'Prime Minister's Jan Dhan Yojana' with an aim of every Indian must have a bank account. The savings accounts
opened in this scheme are no frill accounts with more added advantages.

Current account: 
Generally Current accounts are opened by business units to meet their financial transactions. The
deposits in this account are not entitled to any interest paid to customers. As current account is a demand deposit funds can be withdrawn at demand of customer through cheque. Even an individual also can open a current account.

Time deposits: 
These are also known as term deposits and classified into two types - Fixed deposits and Recurring deposits.

Fixed deposits: 
These are limited with time and fixed rate of interest (differ from bank to bank). The amount along with interest will be paid on maturity. This amount cannot be withdrawn on demand
before maturity date, if early withdrawals are to be made the account has to be closed and settled with a penalty on interest rate. These deposits can also be used as securities for loans.

Recurring deposits: 
Same as fixed deposits as they are also deposited for a particular period and held till maturity. But the major difference is they are credited in equal installments on monthly bases to deposit account by the customer.

Banking

Any institution accepting deposits from public with or without purpose of lending and investment cannot be termed as bank. If the institution is allowing the depositor to withdraw the deposits whenever he / she wants by a cheque or draft or any written order, then only it will be considered as bank.
 Banks are also authorized to carry out certain other transactions such as:
1. Hiring safe deposit lockers
2. Safe custody of articles
3. Remittances 4. Bill discounting
5. Foreign exchange services
6. Trade services
7. Collection of cheques and bills
8. Governments' financial services.

BANKING AWARENESS PRACTICE QUESTIONS FOR ALL BANK EXAMS

1. What are the characteristics that need to be present in an instrument to be said as negotiable instrument?
a) Written instrument with signature
b) Instrument made or drawn for consideration
c) Transfer/ negotiation by endorsement/ delivery
d) Bonafide and valuable
e) All the above

2. BCBS stands for ......
a) Banks Commission for Basel Supervision
b) Basel Committee on Banking Supervision
c) Banking Companies and Business System
d) Banks Committee on Business Supervision
e) None of the above

3. 'Depository services' means ......
a) An agency for safe keeping of securities
b) A bank accepting deposits from customers and service the customers
c) Bank accepting deposits from other bank as a depository services
d) Both b and c
e) None of these

4. Identify the following rates decided by bank .........
a) Bank rate
b) Repo rate
c) Base rate
d) CAR
e) None

5. Which of the following is also known as 'Smart Money' ?
a) Credit cards
b) Electronic cheques
c) Plastic money
d) All the above
e) None of these

6. Statutory Liquid Ratio (SLR), is a mechanism used by commercial banks to ......
a) Provide cash deposits to RBI
b) Liquidate the government fixed properties
c) Avoid government monetary policies with the help of RBI statutory planning
d) Provide credit to government
e) None of these

7. What do you mean by term 'Gilt-edged security'?
a) Government security that is a claim on the government and is a secure financial instrument which guarantees both capital and interest.
b) A financial instrument which is a coupon for corporate security, and payable on demand by corporate to the banks along with the demanded interest.
c) Is a security which is widely used in of day to day banking and commercial financial transactions.
d) It is a security which is easily transferable. And banks can widely accept from public for encashment, providing loans, as securities etc.
e) None of these

8. Identify the bank reasons for returning the cheque unpaid ......
a) No agreement
b) Payment stopped
c) Refer to drawer
d) Exceeds agreement
e) All the above

9. Coins with the value of 50 paise and below are called as ......
a) Small coins
b) Paise value coins
c) Mint coins
d) RBI coins
e) None of these

10. If a cheque is crossed then the status of the cheque is ......
a) It is an invalid document
b) Cheque cannot be enchased even though it is deposited in the payee account
c) The cheque is ineligible to get cash across the counter
d) The cheque is considered as cancelled cheque
e) None of these

11. Banks dishonouring the cheque is called as ......
a) Bank cancelling the cheque
b) Stopping cheque without payment
c) Nullifying of the cheque
d) Truncating the cheque
e) None of these

12. Which of the following is not an instructional credit agency ?
a) Money lenders
b) Commercial banks
c) NBFCs
d) Regional rural banks
e) Co-operative societies

13. Whose signature is found on an one-rupee currency note of india?
a) RBI Governor
b) Finance Secretary of India
c) Deputy Governor of RBI
d) Prime Minister of India
e) Finance Minister of India

14. Who among the following cannot open a savings bank account?
a) A business entity
b) Two persons jointly
c) Both a and b
d) An individual
e) Trusts

15. Interest rate policy belongs to .......
a) Fiscal policy
b) Monetary policy
c) Bank policy
d) Banking Business policy
e) None of these

16. Mr.X an indivical can open following account (s) with a bank ......
a) Savings account
b) Current account
c) Fixed deposit account
d) All the above
e) Only a and c

17. What are the first six numbers indicate in MICR cheque?
a) Cheque number
b) City code
c) Bank code
d) Branch code
e) All the above

18. Which of the following is excluded from NI Act?
a) Promissory note
b) Bill of exchange
c) Cheque
d) Currency note
e) None of these

19. Banks will be happy to lend money to RBI if the following rate is increased ......
a) Repo rate
b) Base rate
c) Reverse repo rate
d) Bank rate
e) None of these

20. Savings account can be opened in following institutions ......
a) Commercial banks
b) Co-operative banks
c) Public sector banks
d) Postal departments
e) All the above

21. What is the maximum period of holdings in a saving account?
a) There is no maximum period of holdings
b) 10 year
c) 6 months to 1 year (depending on bank)
d) More than 10 years
e) None of these

22. A person who draws the cheque is known as .......
a) Drawee
b) Drawer
c) Payee
d) Barer
e) None of these

23. Resolution and settlement of grievance of public against banks is done by ......
a) Reserve Bank
b) Indian Banking association
c) Customer himself
d) Banking ombudsman
e) None of these

24. An introduction while opening an account is ......
a) Optional
b) Compulsory
c) Not necessary under NI Act
d) Both b and c
e) None of these

25. According to RBI a savings bank account is treated as inoperative or dormant if there are no transactions in the account over a period of .......
a) 2 years
b) 18 months
c) 1 year
d) 5 years
e) None of these

ANSWER:
1-e, 2-b, 3-a, 4-c, 5-b, 6-d, 7-a, 8-e, 9-a, 10-c
11-c, 12-a, 13-b, 14-a, 15-b, 16-d, 17-a, 18-d, 19-c, 20-e, 21-a, 22-b, 23-d, 24-b, 25-a

Banking System in India

I n India banks are classified into scheduled banks and non scheduled banks. Scheduled banks are those institutions which are listed in the second schedule of RBI act, 1934 satisfying the criteria laid down wide section 42(6)(A) of RBI act. Non scheduled bank means banking company as defined in the section 5 clause (C) of banking regulation act, 1949.

Scheduled banks:
All scheduled banks must fulfil the criteria under sec 42(6)(A) of RBI Act 1934. The criteria is the institution carries on business of banking in India and satisfies the Bank that its affairs are not being conducted in a manner detrimental to the interests of its depositors. Schedule banks are further classified into cooperative banks and commercial banks. All commercial banks, Regional Rural Banks, and state co-operative banks are scheduled banks. Most recently added bank under this
schedule is Bharatiya Mahila Bank (BMB) on 21st May, 2014.

Co-operative banks:
Co-operative banks are organized under provision of the co-operative society laws of states. Hence these banks are called as state cooperative banks. These banks are established with the primary aim of rural development and in particular agricultural and agricultural allied development in the state.

Commercial banks:
These are Banks which deals in money and credit. The primary objective is profits. Commercial banks have a wide range of activities and functions which covers the complete banking service system.
★ Commercial banks are further classified into public sector banks, private sector banks, regional rural banks and foreign banks. Public sector banks are again classified into nationalized banks and SBI and it's associated. There are 27 nationalised banks in which 6 are SBI and its associates.

The major functions of Commercial banks are .....
★ Receiving money in the form of deposits from public and business units. The deposits are of like savings accounts, current accounts, fixed deposits and lend money, generally for short periods, in the form of loans, overdrafts, bills discounting, money market, term loans, consumer credit and cash credits. The difference between the rate of interest allowed on deposits and the rate charged on the Loans is the income source and cycle of money flow in economy. This generates money in the economy.
★ They provide foreign trade and services.
★ Promotes the usage of banking services with a aim of mobilizing financial transactions form un-organized sector to organized banking sector with the help of clearing system and instruments like cheques, drafts which are cheaper way of medium of exchange.

BANKING AWARENESS PRACTICE QUESTIONS FOR IBPS CLERKS EXAM

1. General credit control by RBI is done through?
a) Bank rate
b) CRR
c) SLR
d) All the above
e) None of these

2. Commercial bank can increase their lending and investing ability through?
a) Level liquidity and excess cash
b) Commercial papers
c) Taking the help of public
d) Productive methods
e) None of these

3. Who is also known as lender of the last resort?
a) Commercial banks
b) RBI
c) Regional rural banks
d) Union Government of India
e) None of these

4. Basic banking services making available with nil or very minimum balance saving account is done through which of the following?
a) Recurring savings account
b) Government sponsored credit account
c) QAB quarterly minimum balance
d) No frills savings account
e) None of the these

5. Take the odd one out.
a) Pledge
b) Hypothecation
c) Assignment
d) Mortgage
e) Lien

6. In primary and secondary markets dealer of Government securities is known as?
a) Primary dealer
b) Secondary dealer
c) Ledger
d) Corporate bond dealer
e) None of these

7. What are/ is the source of income to banks?
a) Bill discounting
b) Commission/ Brokerage
c) Interest on loans
d) Interest on investments
e) All the above

8. What are the agency services provided by commercial banks?
a) Collecting and payment of credit instruments
b) Letter credit
c) Collecting statistics
d) Traveler's cheques and credit cards
e) Merchant banking

9. Banks underwrite securities issued by ......
a) Government of india
b) Public sector companies
c) Private sector companies
d) Both b and c
e) All the above

10. Bank grant loan for very short period not exceeding 7 days and payable immediately at short notice is what kind of advancing?
a) Consumer credit
b) Smart money advancing
c) Call money or money at call advancing
d) Money credit
e) Cash credit

11. Commercial banks provide locker facility to their customer for .......
a) Safe custody
b) Storing excess gold and valuables of banks
c) Filing important documents
d) Satisfying the Bank's jewellry and gold needs.
e) All the above

12. Current deposits are also known as .......
a) Fixed Deposits
b) Demand Deposits
c) Time Deposits
d) All the above
e) None of these

13. Identify the way(s) of bank lending ........
a) Cash credit
b) Overdraft facility
c) Bill discounting
d) Term loans
e) All the above

14. Which of the following system encourages the habit of thrift?
a) Savings account deposit
b) Fixed deposit
c) Economy deposit
d) Commercial deposit
e) None

15. The rate at which bank quote to their most credit worthy customers ......
a) Statutory Liquidity Rate
b) Fixed Rate
c) Floating Rate
d) Prime Lending Rate
e) None

16. Identify the corresponding banking services.
a) Cheque collection
b) Securities safe keeping and trading
c) Loan participating
d) Fund transfer
e) All the above

17. Local area banks are those which operates?
a) In a single branch or unit banks
b) In a city or town
c) In a specific metropolitan cities
d) In a couple of districts which are contiguous
e) None of these

18. Who are all can not open a savings account in commercial banks?
a) Illiterate and blind persons
b) Legal business entity
c) Self helping groups
d) Hindu undivided family
e) None

19. Cash reserves include ........
a) Money market instruments
b) Cash
c) Treasury bills
d) All of these
e) None of these

20. An instrument which enable a account holder to draw money from his bank deposit account is known as ......
a) Cheque
b) Demand Draft
c) Pay in slip
d) Challan
e) None

21. Identify the main and major source of income to bank from the following ......
a) Commission received by Issuing Demand Drafts against money deposited.
b) QAB Charges.
c) The difference between the rate of interest allowed on deposits and the rate charged on the Loans.
d) Charges collected on current account transactions.
e) None

22. Which are/ is the Instruments used by Central Government to barrow money from RBI?
a) Treasury bills
b) Certificate of deposit
c) Commercial paper
d) Both b and c
e) None of these

23. Identify the odd from following negotiable instrument.
a) Cheque
b) Bank draft
c) Bill of exchange
d) Fixed deposit
e) Promissory notes

24. Public sector banks are owned by ......
a) Wholly by Government of India
b) Government of India and with minor share of RBI
c) Government of India with major share and along with general public share holders
d) Only RBI
e) None of these

25. The act that helps banks in their day to day banking activities is ...
a) Negotiable instrument act
b) Service sector act
c) RBI act
d) Banking act
e) None

26. Which is the largest commercial bank in India?
a) PNB
b) ICICI Bank
c) SBI
d) Central Bank of India
e) None of these

27. What is an unconditional order in writing be drawn by a customer on his bank?
a) Cheque
b) Complaint
c) Draft
d) Bank note
e) All the above

28. Which bank says that our bank is 'India's International Bank' .......
a) ICICI Bank
b) Bank of Baroda
c) SBI
d) HDFC Bank
e) RBI

29. Which is not a function of commercial bank from the following?
a) Issuing letter of credits, travelers cheques
b) Safe custody of valuables
c) Collecting and distrusting business information
d) Providing reports on credit worthiness of customers
e) None of these

30. Indian rupee is also known as ......
a) Standard token coin
b) Nickel coin
c) Silver or gold coin
d) Token coin
e) None of these

ANSWERS:
1-d, 2-a, 3-b, 4-d, 5-c, 6-a, 7-e, 8-a, 9-e, 10-c
11-a, 12-b, 13-e, 14-a, 15-d, 16-e, 17-d, 18-b, 19-d, 20-a
21-c, 22-a, 23-d, 24-c, 25-a, 26-c, 27-a, 28-b, 29-e, 30-a.

BANKING AWARENESS PRACTICE MCQs FOR IBPS CLERKS EXAM

1. Banks in our country normally publicize that additional interest rate is allowed on retail domestic term deposits of ____
a) Minors
b) Married Women
c) Senior citizens
d) Government Employees
e) Rural residents

2. When the rate of inflation increases ___
a) Purchasing power of money increases
b) Purchasing power of money decreases
c) Value of money increases
d) Purchasing power of money remains unaffected
e) Amount of money in circulation decreases

3. Acentralized database with online connectivity to branches, internet as well as ATM network which has been adopted by almost all major banks of our country is known as ___
a) Investment Banking
b) Core Banking
c) Mobile Banking
d) National Banking
e) Specialized Banking

4. Which of the following is NOT considered a money market instrument?
a) Treasury Bills
b) Repurchase Agreement
c) Commercial Paper
d) Certificate of Deposit
e) Shares and Bonds

5. Which of the following is necessary while opening deposit accounts in banks?
a) Will
b) Registration
c) Nomination
d) Indemnity
e) Guarantee

6. Which of the following is not a banking term?
a. Letter of credit
b. MIBOR
c. Factoring services
d. Entry load
e. None of these

7. Which of the following organizations issue the rules of global trade?
a) IMF
b) World Trade Organization
c) Foreign trade
d) G-20
e) None

8. One single statement that depicts the financial position of a Bank and / or Business enterprise at a given point of time is called:
a) Statement of product details
b) Foreign exchange
c) Balance Sheet
d) Balance of payment
e) Trading and Manufacturing account

9. The Reverse Mortgage scheme is launched to give benefit to which of the following groups of society?
a) Persons below 60 yrs
b) Senior Citizens
c) Unemployed youth
d) Orphans
e) All the above

10. One of the major challenges banking industry is facing these days is curbing deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following act is passed to prevent this activity?
a) Payment & Settlements Act
b) Control Money Supply Act
c) Narcotics and Psychotropic Substance Act
d) Prevention of Money Laundering Act
e) None

11. Which of the following scheme is not meant for investment purposes?
a) National Saving Certificate
b) Infrastructure Bonds
c) Mutual Funds
d) Letter of Credit
e) None of these

12. Basel Norms which are important regulatory stipulations are meant for which sector?
a) Insurance
b) Banking
c) Micro finance
d) Pension funds
e) None

13. Systematic Investment Plans relates to:
a) Mutual Funds
b) Life Insurance Companies
c) Commercial Banks
d) Post office savings schemes
e) None

14. Euro is the official currency of ___?
a) NATO
b. United Nations
c) European Union
d) Germany and England
e) None of these

15. Which of the following is an example of cash less purchase?
a) Debit card
b) Credit card
c) ATM withdrawal
d) All of the above
e) None

16. Whose signature appears on Indian Rs. 100 note?
a) Finance Minister
b) RBI Governor
c) Finance Secretary
d) Chairman, Planning Commission
e) None

17. While discussing investments there is a mention of short term government security.
What is this investment?
a) Debenture
b) Mutual funds
c) Treasury bill
d) Share
e) None of these

18. NBFCs are an important part of the Indian financial system. What is meant by this term?
a) New Banking Financial Companies
b) Non Banking Financial Companies
c) Neo Banking Financial Confederation
d) Non banking Fiscal Companies
e) None of these

19. Bank loan against property requires the asset to be free from encumbrances. What
does it mean?
a) The asset to be free from any liability
b) The asset to be properly registered
c) The property to be fully constructed
d) The asset should not have multiple owners
e) None

20. RBI stipulates a healthy mix of CASA in the business figures of banks. What is CASA?
a) Customer Analysis and Savings Pattern
b) Cost Appreciation and selling Analysis
c) Current Account and saving Account
d) Credit and savings Aggregate
e) None of these

21. Which one of the following is not an electronic banking delivery channel?
a) Mobile Vans
b) Mobile Phone Banking
c) Internet Banking
d) Tele Banking
e) ATM

22. The Rate at which the domestic currency can be converted into foreign currency and
vice-versa is known as the ____
a) Exchange rate
b) MIBOR
c) Inter bank Call money rate
d) Base rate
e) LIBOR

23. Now a days, banks are selling third party products. An example of third party product is:
a) Mutual funds
b) Term deposits
c) Credit cards
d) All of these
e) None

24. Electronic Clearing Service in banks can be availed only by:
a) Individuals
b) Corporates
c) Senior Citizens
d) All of these
e) None

25. What is the full form of CRR as used in banking sector?
a) Crucial Reserve Rate
b) Cash Reserve Ratio
c) Current Reserve Ratio
d) Core Current Ratio
e) None.

26. What is the full form of LAF as used in the banking world very frequently ?
a) Liquid Advances Finance
b) Liquidity Adjustment Facility
c) Legal Adjournment Formality
d) Local Advance Finance
e) Late Arrival of Finance

27. Where is the headquarters of International Monetary Fund located?
a) Geneva
b) Paris
c) London
d) Manila
e)Washington DC

29. Many Regional Rural Banks are given licence to open branches in small cities and towns. These licences are given by:
a) Cabinet Committee on Economic Affairs
b) Reserve Bank of India
c) NABARD
d) Indian Banks Association
e) None of these

30. Which of the following organisations/agencies is not associated with the world of
Banking and Finance?
a) SEBI
b) AMFI
c) RBI
d) ECGC
e) SPCA

ANSWERS:
1) c; 2) b; 3) b; 4) e; 5) c; 6) d; 7) b; 8) c;
9) b; 10) d; 11) d; 12) b; 13) a; 14) c; 15) d; 16)b;
17) c; 18) b; 19) a; 20) c; 21) a; 22) a; 23) a; 24)d;
25) b; 26) b; 27) e; 28) b; 29) e; 30) c;

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BANKING AWARENESS PRACTICE QUESTIONS FOR IBPS CLERKS EXAM

1. World Trade Organization's (WTO) 9th Ministerial Conference is to be held in December, 2013. Where is it to be held?
a) Bali, Indonesia
b) Cancun, Mexico
c) Geneva, Switzerland
d) Hongkong
e) None of the above

2. In August, 2013, Govt of India set up a 7 member panel to revisit Tax laws and to recommend measures for a stable tax administration. Who heads the panel?
a) Naina Lal Kidwai
b) Bimal Jalan
c) Parthasarathi Shome
d) Dr Y V Reddy
e) None of the above

3. Which of the following is NOT a Direct Tax?
a) Income Tax
b) Corporation Tax
c) Property Tax
d) Gift Tax
e) Service Tax

4. Open Market Operations are carried out by RBI to
a) Lend money to State Governments
b) Shore up the Rupee value
c) Adjust Market Liquidity and thereby controlling money supply
d) To bring down Gold prices
e) None of the above.

5. 'Laissez-faire' in economic parlance means
a)Totally controlled market
b) Completely free market
c) Capitalistic market
d) Monopolistic market
e) None of the above

6. What is a Debt Fund?
a) Mutual Fund that invests in Fixed Income Securities like Bonds & Treasury bills
b) Mutual Fund that invests only in Shares and Equities
c) Mutual Fund that invests only in Infrastructure Bonds
d) Mutual Fund that invests only in long term Deposits
e) None of the above

7. Find the 'odd man out' of the following.
a) Certificate of Deposit
b) Term Deposit
c) Savings Bank Deposit
d) Commercial Paper
e) Capital Gains Deposit

8. What is NOT true with regard to TDS (Tax Deducted at Source) on Interest on Bank
Deposits for the Financial Year 2013-14?
a) TDS is done when interest on all the FDs of a Customer crosses Rs. 10000/- per year
b) TDS is not done for interest on Tax Saving FDs
c) TDS is done at the rate of 10% on the total Interest
d) TDS is not done on interest from Savings Bank Accounts
e) None of the above

9. Current Foreign Trade Policy (Exim Policy) covers the period
a) 2013-18
b) 2012-17
c) 2010-15
d) 2011-16
e) 2009-14

10. Ben Bernanke is the Chairman of USA's Central Bank, 'Federal Reserve'. Who will succeed him?
a) Janet Yellen
b) Christine Lagarde
c) Oliver Kahn
d) John Kerry
e) None of the above

11. While Indian Railways is the largest Public Sector Employer in India, who is the
largest Private Sector Employer in India?
a) Reliance Industries
b) Infosys
c) Wipro
d) TCS
e) None of the above

12. Which State in India has the highest Per Capita Income?
a) Goa
b) Punjab
c) Karnataka
d) Tamilnadu
e) Haryana

13. As per the latest Companies Act, what is the minimum number of member's required
to form a Public Limited Company?
a) 1
b) 50
c) 7
d) 2
e) 10

14. Regional Rural Banks(RRBs) are owned by
a) Only RBI and Sponsor Bank
b) Only Govt of India and Sponsor Bank
c) Only Sponsor Bank, Govt of India and State Government concerned
d) Only Sponsor Bank and State Government concerned
e) None of the above

15. Davos in Switzerland is famous for Annual meeting of World Business leaders,Politicians and thought leaders. Which organization conducts this meeting?
a) World Economic Forum - A Swiss Non-profit Foundation
b) World Bank
c) International Monetary Fund
d) World Trade Organization
e) None of the above

16. What is 'Deficit Financing'?
a) Lending of money by Banks to companies with losses
b) Practice in which a government spends more money than it receives as revenue
c) Lending of money by RBI to State Governments
d) Lending of money by World Bank to Poor countries
e) None of the above

17. Who is the author of 'Das Kapital' which is a critical analysis of Political Economy?
a) Maxim Gorky
b) Karl Marx
c) Leo Tolstoy
d) Amartya Sen
e) None of the above

18. The 'Bharatiya Mahila Bank' the first nationalised bank for women will have a Seed Capital of Rupees
a) 500 Crores
b) 5000 Crores
c) 100 Crores
d) 1000 Crores
e) None of the above

19. JNNURM (Jawaharlal Nehru National Urban Renewal Mission) is a Govt. of India
scheme for?
a) Urban Employment
b) Urban Finance
c) Urban Education
d) Urban Development & Modernization
e) 'a', 'b' & 'c' of the above

20. Which Country is the largest producer of Wheat in the world?
a) India
b) USA
c) Peoples Republic of China
d) Russia
e) None of the above

21. The first NBFC (Non Banking Financial Company) to be converted into a Bank in
India is
a) Kotak Mahendra Finance Ltd. in 2003
b) Reliance Finance Ltd. in 2005
c) L&T Finance Ltd. in 2008
d) Shriram Finance Ltd. in 2006
e) None of the above

22. What is 'Operation Flood'?
a) Flood Control Program of Govt. of India
b) River Linking Project of Govt. of India
c) Dairy Development Project of NDDB(National Dairy Development Board)
d) Irrigation Development Plan of Govt. of India
e) None of the above

23. What is the Target set for Farm Credit in Union Budget for 2013-14?
a) Rs 7,00,000 Crore
b) Rs 5,00,000 Crore
c) Rs 5,75,000 Crore
d) Rs 3,00,000 Crore
e) None of the above

24. What is 'Financial Inclusion'?
a) Delivery of Banking Services at affordable cost
b) Providing Banking Services to the vast sections of disadvantaged and low income groups
c) Availability of Banking and payment services to entire population without discrimination
d) All the 3 above
e) None of the above

25. How much amount is earmarked approximately for capital infusion in to Public Sector Banks in FY 2013-14?
a) Rs. 14,000 Crores
b) Rs. 10,000 Crores
c) Rs. 20,000 Crores
d) Rs. 18,000 Crores
e) None of the above

26. The threshold for cash transactions to be monitored by Banks as per RBI guidelines is
a) Rs. 50 Lakh
b) Rs. 10 Lakh
c) Rs. 5 Lackh
d) Rs.50,000
e)Rs. 25,000

27. On 10th October, 2013 a group member organisation of the World Bank has launched Bonds worth US $ 1 billion linked to Rupee for boosting investments in India. Name this organization.
a) International Monetary Fund (IMF)
b) International Finance Corporation (IFC)
c) Asian Development Bank (ADB)
d) United Nations Development Programme (UNDP)
e) None of the above

28. National Bank for Agriculture and Rural Development (NABARD) is established in
July, 1982 as per recommendations of Committee headed by
a) Narasimhan
b) Saraf
c) Rangarajan
d) Sivaraman
e) Bimal Jalan

29. What is the name of the trade Association of IT & BPO companies in India?
a) NASSCOM
b) FICCI
c) CII
d) AIMA
e) ASSOCHAM

30. Name the Bank which has recently announced 'eKYC' facility to open Savings and
Loan accounts based on just Aadhar and Finger prints scan for New Customers.
a) HDFC Bank
b) SBI
c) Axis Bank
d) IDBI Bank
e) Punjab National Bank

31. RBI guidelines require Banks to roll out more secured 'Chip+ PIN' Debit/Credit cards
to their customers. What is the deadline set by RBI for this?
a) November 30th, 2013
b) December 31st, 2013
c) March 31st, 2014
d) September 30th, 2013
e) None of the above

32. Which Sector contributed maximum to GDP of India as per Economic Survey 2012-13?
a) Industrial
b) Services
c) Agriculture
d) Infrastructure
e) None

33. What is 'Employee Attrition'?
a) Employees filing suits against their Employers
b) Employees filing suits against each other
c) Employees striking work
d) Employer loosing Employees through resignation/retirement/retrenchment
e) None of the above

34. Rs. 2058 Crore Jet-Etihad deal is the largest Foreign investment in Indian Aviation Sector so far. Where is the Etihad headquarters is located?
a) Dubai
b) Muscat, Oman
c) Kuwait
d) Singapore
e) Abu Dhabi

35. Which company is the World's largest Steel manufacturer?
a) Nippon Steel, Japan
b) Arcelor Mittal, Luxemborg
c) POSCO, South Korea
d) Tata Steel, India
e) None of the above


ANSWERS:
1) a 2) c 3) e 4) c 5) b 6) a 7) d 8) e 9) e 10) a
11) d 12) a 13) c 14) c 15) a 16) b 17) b 18) d 19) d 20) c
21) a 22) c 23) a 24) d 25) a 26) b 27) b 28) d 29) a 30) c
31) a 32) b 33) d 34) e 35) b

http://banking-awareness.blogspot.com/2014/08/banking-awareness-practice-questions.html

BANKING AWARENESS PRACTICE QUESTIONS FOR IBPS CLERKS WXAM

1. Periodically Reserve Bank of India (RBI) reviews a few SLR norms. SLR stands for?
a) Statutory Liquidity Ratio
b) Statutory Liquidity Rate
c) Statutory Liquidity Return
d) Statutory Liquidity Repo
e) None of the above

2. In the recent months, Indian Rupee depreciated heavily against US Dollar. Rupee depreciation means?
a) Value of Rupee decreasing against a basket of currencies
b) Less number of Rupees per US Dollar
c) More number of Rupees per US Dollar
d) Less number of Dollars per Rupee
e) None of the above

3. In India, Commodities Market is regulated by?
a) Forward Market Commission
b) Forward Market Committee
c) Forward Market Corporation
d) Forward Market Council
e) None of the above

4. Food Security Bill is recently passed by Parliament. What does the Food Security Bill intend to achieve?
a) At least 3kg of food grains per person per month to be given to general category households, at prices not exceeding 50% of Minimum Support Price.
b) Up to 75% of the rural population and up to 50% of urban population are to be covered under Targeted Public Distribution System.
c) Children aged six months to 14 years would get take-home ration or hot cooked food.
d) The oldest adult woman in each house would be considered the head of that household when issuing the ration card.
e) All of the above

5. FIPB stands for?
a) Foreign Investment and Production Board
b) Foreign Investment and Promotion Board
c) Foreign Investment and Promotion Bureau
d) Foreign Investment and Protection Board
e) None of the above

6. In India, Capital Markets are regulated by?
a) Securities and Exchange Board of India
b) Reserve Bank of India
c) State Bank of India
d) International Monetary Fund
e) None of the above

7. RAND is the currency of ?
a) China
b) Japan
c) North Korea
d) South Africa
e) None of the above

8. Recently RBI took several steps to control Rupee depreciation. Reason(s) for to Rupee depreciation?
a) Exports become costlier
b) Imports become costlier
c) Imports become cheaper
d) Both (a)&(c)
e) None of the above

9. India's GDP growth is slowing down. GDP means?
a) Gross Domestic Product
b) Gross Domestic Poverty
c) Gross Demand Production
d) Gross Demand Product
e) None of the above

10. Chakravarthy Rangarajan is?
a) Governor of Reserve Bank of India
b) Director of Securities and Exchange Board of India
c) Chairman of Prime Minister Economic Advisory Council
d) Chairman of State Bank of India
e) None of the above

11. International Monetary Fund (IMF) works to foster global monetary cooperation, promote high employment and sustainable economic growth. Who is the current managing director of IMF?
a) Kaushik Basu
b) Dr. Y V Reddy
c) Jim Yong Kim
d) Christine Lagarde
e) None of the above

12. Air-Asia India is the new proposed Airline in India. It tied up with the following Industrial group for its launch in India?
a) TATAs
b) Reliance group
c) Aditya Birla group
d) Infosys
e) None of the above

13. Raghuram Rajan became the 23rd RBI Governor on 5th September 2013. Whom did he
succeed?
a) Dr Y V Reddy
b) D Subba Rao
c) Bimal Jalan
d) Dr Rangarajan
e) None

14. IRDA headquarters located in which City?
a) Mumbai
b) Bangalore
c) Hyderabad
d) Chennai
e) None of the above

15. Arundathi Battacharya was recently in the news. She is?
a) Managing Director of SBI
b) Chairman of Punjab National Bank
c) CEO of ICICI Bank
d) CEO of Axis Bank
e) None of the above

16. India's CAD was 4.8% of GDP in 2012-13. CAD means?
a) Current Amount Deficit
b) Current Account Deficit
c) Current Asst Debt
d) Common Account Deficit
e) None of the above

17. Which of the following is NOT matched?
a) C B Bhave - SEBI
b) Rangarajan - Planning Commission
c) Raghuram Rajan - RBI
d) T S Vijayan - IRDA
e) Yogesh Agarwal - PFRDA

18. Who is the Chairman of the Planning Commission?
a) P. Chidambaram
b) Monteksingh Ahluwalia
c) Raghuram Rajan
d) Manmohan Singh
e) None of the above

19. As per findings of the recent Raghuram Rajan Committee report which State is the
most developed?
a) Kerala
b) Goa
c) Gujarat
d) Tamilnadu
e) None of the above

20. As per the insurance bill, 2013, Foreign Investors can hold up to?
a) 51% of the capital in an Indian insurance company
b) 39% of the capital in an Indian insurance company
c) 49% of the capital in an Indian insurance company
d) 29% of the capital in an Indian insurance company
e) None of the above

21. Statutory Liquidity Ratio (SLR) refers to the amount that the commercial banks require to maintain with RBI. What are the permitted SLR investments?
a) Only Gold
b) Gold or Govt approved Securities
c) Only Govt approved Securities
d) Only Cash
e) None of the above

22. Direct Taxes Code (DTC) is intended to be introduced in the monsoon session of
Parliament. DTC seeks to replace?
a) Indian Contract Act
b) Indirect Tax Act
c) Income-Tax Act
d) Banking Regulation Act
e) None of the above

23. In July 2013, RBI notified that Non-CTS Cheques are valid till the end of year 2013. CTS means?
a) Cheque Truncation System
b) Cheque Transaction System
c) Cheque Transmission Service
d) Cheque Transport Service
e) None of the above

24. In July 2013, SEBI Act was amended to curb Ponzi schemes. Ponzi Scheme means?
a) Name of a Mutual Fund Scheme to earn higher returns
b) Collective investment Schemes floated by fly by night operators
c) Name of a Bank Deposit Product
d) Name of a Health Insurance scheme
e) None of the above

25. The minimum rate of Interest charged by a Bank from Customers on the loans is?
a) Base Rate
b) Bank Rate
c) Prime Rate
d) Prime Lending Rate
e) None of the above

26. Which of the following is NOT true with regard to FCNR Accounts?
a) NRIs can open the Account
b) Can be opened in 'Permitted Currency' only
c) Minimum Term is 1 year
d) Maximum Term 5 years
e) None of the above

27. REPO rate means?
a) Rate at which the RBI will borrow from the banks
b) Rate at which banks will borrow from other banks
c) Rate at which the RBI lends to banks
d) Rate at which banks lend to customers
e) None of the above

28. Fiscal Deficit Refers to?
a) The difference between the government's total expenditure and its total receipts
(including borrowing)
b) The difference between the government's total expenditure and its total receipts
(excluding borrowing)
c) The difference between the government's Tax collections and Salary payments
d) The difference between the government's Tax collections and government's
Borrowings
e) None of the above

29. "DAX" is the stock market in?
a) Germany
b) USA
c) France
d) Hongkong
e) None of the above

30. After retirement, Ratan Tata was made the Chairman Emeritus of Tata Sons. Who
succeeded Ratan Tata as Chairman of Tata Sons?
a) Cyrus Mistry
b) Niira Radia
c) Mukesh Ambani
d) Nandan Nilekani
e) None of the above

31. Yellow Metal refers to?
a) Copper
b) Silver
c) Platinum
d) Gold
e) None of the above

32. Who is the Chairman of the committee set up to scrutinize applications for new Bank licenses?
a) Usha Thorat
b) Bimal Jalan
c) C B Bhave
d) S Damodaran
e) None of the above

33. Who is the World Bank President?
a) Christine Legrade
b) Jim Yong Kim
c) Raghuram Rajan
d) Monteksingh Ahluwalia
e) None of the above

34. Ben Bernanke is the Chairman of Federal Reserve. What is Federal Reserve?
a) Central Bank of UK
b) Financial wing of the World Bank
c) Central Bank of USA
d) European Union Central Bank
e) None of the above

35. NEFT means?
a) National Electronic Funds Transfer
b) Negotiated Efficient Fund Transfer system
c) National Efficient Fund Transfer solution
d) Non Effective Fund Transfer system
e) Negotiated Electronic Foreign Transfer system.

36. Distribution of insurance products and insurance policies by banks as corporate agents is known as?
a) General insurance
b) Non life insurance
c) Bancassurance
d) Insurance Banking
e) Deposit Insurance

37. In respect of partnership business, LLP stands for:
a) Local Labour Promotion
b) Low Labour Projects
c) Limited Loan Partnership
d) Longer Liability Partnership
e) Limited Liability Partnership

38. What is a stale cheque?
a) A cheque issued without drawer's signature.
b) A cheque with only signature of the drawer.
c) A cheque which has completed 3 months from the date of its issue.
d) Any one of the above.
e) None

39. Interest on savings bank account is now calculated by banks on?
a) Minimum balance during the month
b) Minimum balance from 7th to last day of the month
c) Minimum balance from 10th to last day of the month
d) Maximum balance during the month
e) Daily product basis

40. Largest shareholder (in percentage shareholding) of a Nationalized bank is ?
a) RBI
b) NABARD
c) LIC
d) Govt. of India
e) IBA

ANSWERS:
1) a; 2) c; 3) a; 4) e; 5) b; 6) a; 7) d; 8) b; 9) a; 10) c;
11) d; 12) a; 13) b; 14) c; 15) a; 16)b; 17) b; 18) d; 19) b; 20) c;
21) b; 22) c; 23) a; 24)b; 25) a; 26) e; 27) c; 28) b; 29) a; 30) a;
31) d; 32)b; 33) b; 34) c 35) a; 36) c; 37) e; 38) c; 39) e; 40) d

BANKING AWARENESS PRACTICE QUESTIONS FOR IBPS CLERKS EXAM

1. The Issued Capital of RRBs (Regional Rural Banks) is jointly shared by Govt of India, Sponsor Bank & State Govt. concerned in the Ratio of?
a) 50%, 35% & 15% respectively
b) 50%, 30% & 20% respectively
c) 40%, 40% & 20% respectively
d) 20%, 20% & 60% respectively
e) None of the above

2. Who is known as 'Father of White Revolution' in India?
a) M S Swaminathan
b) Amartya Sen
c) Verghese Kurien
d) M. Visweswaraiah
e) None of the above

3. Which of the following are the measures aimed at greater 'Financial Inclusion'?
a) No Frills Accounts
b) Simple KYC (Know your customer) norms
c) Reasonable Bank Charges
d) 'a', 'b' & 'c' of the above
e) None of the above

4. Which of the following is NOT a valid document for opening new accounts with
banks as per RBI Anti-Money Laundering standards and KYC norms?
a) Passport
b) eKYC
c) Pan card
d) NREGA(National Rural Employment Guarantee Act) Job card
e) None of the above

5. What is a 'Chip+PIN' card?
a) A license card issued to Exporters by DGFT(Director General of Foreign Trade)
b) A highly secure Credit/Debit card having an embedded Chip with the encrypted PIN stored on the Chip
c) PAN card with an embedded Chip and PIN
d) A card which requires the user to enter PIN also while swiping at POS(Point of Sale) terminals
e) 'b' & 'd' of the above

6. How a high rate of 'Employee Attrition' affects an organization which requires highly skilled workers?
a) Decrease in Training Costs only
b) Increase in Recruitment and Training Costs
c) Decrease in Recruitment Costs only
d) Organization is not affected in any way
e) None of the above

7. At present which two Private Sector Banks are the last ones that were given Bank Licences by RBI?
a) Karur Vysya Bank & Lakshmi Vilas Bank
b) Axis Bank & Lord Krishna Bank
c) Kotak Mahendra Bank & Yes Bank
d) IDBI Bank & HDFC Bank
e) Karnataka Bank & Ratnakar Bank

8. Who owns the Share Capital of the RBI?
a) All the State Govts
b) Govt of India
c) All the Public Sector Banks
d) All the Public & Private Sector Banks
e) The World Bank

9. Which Country is the largest Importer from India (US $ 36,316 Millions) for Financial year 2012-13 ?
a) United Arab Emirates (UAE)
b) Unites States of America (USA)
c) UK (United Kingdom)
d) PRC (Peoples Republic of China)
e) Canada

10. What is the Priority Sector Lending Target stipulated for the Domestic Scheduled Commercial Banks for the Financial Year 2013-14?
a) 30 % of Adjusted Net Bank Credit
b) 60 % of Adjusted Net Bank Credit
c) 20 % of Adjusted Net Bank Credit
d) 50 % of Adjusted Net Bank Credit
e) 40 % of Adjusted Net Bank Credit

11. What is NOT true with regard to ITPO (India Trade Promotion Organization)?
a) It is a Trade Promotion Agency of Govt of India
b) It organizes Trade Fairs
c) It is located in New Delhi
d) It provides Finance to Exporters
e) It has Trade Centres in Bangalore and Chennai

12. As per RBI guidelines, Photos are not insisted up on by Banks while opening a Time Deposit below?
a) Rs. 50,000/-
b) Rs. 10,000/-
c) Rs. 20,000/-
d) Rs. 25,000/-
e) None

13. Which of the following is NOT a Tax levied by the Central Govt?
a) Tax on Agricultural Income
b) Corporation Tax
c) Income Tax
d) Customs Duty
e) Wealth Tax

14. Export Credit Guarantee Corporation of India Ltd. (ECGC) is a Govt of India Enterprise which provides?
a) Export Credit Insurance facilities to Exporters and Banks in India
b) Loans to Exporters in India
c) Export Credit Refinances to Banks in India
d) Export Licenses to Exporters in India
e) None of the above

15. Warren Buffett, considered world's most successful investor of the 20th Century and one of the world's wealthiest people belongs to which Country?
a) UK
b) USA
c) Canada
d) Germany
e) None of the above

16. The largest exporter of dairy products in India is?
a) Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)
b) Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF)
c) Karnataka Co-operative Milk Producers' Federation Ltd. (KMF)
d) Tamilnadu Co-operative Milk Producers' Federation Ltd.
e) None of the above

17. Green Revolution in India made the country self sufficient in Food grains production.
Who is the father of the Indian Green Revolution?
a) Norman Borlaug
b) Verghese Kurien
c) M S Swaminathan
d) Amartya Sen
e) None of the above

18. Which of the following is the most suited form of Irrigation in Desert Lands?
a) Sprinkler irrigation
b) Canal irrigation
c) Borewell irrigation
d) Drip irrigation
e) None of the above

19. Ratan Tata is the current?
a) Chairman of Tata Sons
b) Chairman of TCS
c) Chairman of Tata Group
d) Chairman Emeritus of Tata Sons
e) None of the above

20. 'Yuan' , Currency of Peoples Republic of China is also known as?
a) Renminbi
b) Chinese Dollar
c) Kroner
d) Peso
e) None of the above

21. What is TRUE about 'Plan-Expenditure' of Union Budget?
a) It is the expenditure incurred on items relating to 5 year plans
b) It is incurred by the State Governments only
c) It includes Revenue Expenditure and Capital Expenditure
d) It is incurred by the Central Government
e) 'a', 'c' & 'd' above

22. Govt of India has set up 7th Pay Commission which would decide on revision of Salaries for Govt Employees and Pensioners. From what date are the recommendations of the Commission likely to be implemented ?
a) 1st January, 2016
b) 1st April, 2016
c) 1st January, 2014
d) 1st April, 2014
e) 1st January, 2015

23. Immediate Payment Service (IMPS)?
i. Is a service to transfer money immediately between two Accounts within the same bank or across banks.
ii. Requires both sender & receiver of money to be registered for mobile banking serice with their banks
iii. Requires both sender & receiver of money to have MMID(Mobile Money Identifier) issued by their banks
a) Only statement 'i' of the above is correct
b) Only statement 'iii' of the above is correct
c) Statements 'i' & 'ii' of the above are correct
d) Statements 'i' , 'ii' & 'iii' of the above are correct
e) None of the statements is correct

24. All the Money Bills related to Budget should be passed in full within how many days
of presentation of the Budget?
a) 60 days
b) 30 days
c) 75 days
d) 120 days
e) 90 days

25. What is NOT true with regard to Rajiv Awas Yojana (RAY)?
a) It is a Scheme of Govt of India
b) It benefits the Poor in the Rural areas
c) It aims to make India Slum-free by the year 2022
d) It aims to provide shelters or housing free of cost to the beneficiaries
e) Rs. 32,230 crore has been earmarked by Govt for the scheme during 12th Five year plan

26. Who presented the maximum number (10) of annual Budgets for India?
a) P Chidambaram
b) Pranab Mukherjee
c) Y B Chavan
d) Morarji Desai
e) None of the above

27. Which of the following pair of Country-Stock Exchange is NOT matched?
a) India - NIFTY
b) USA - NASDAQ
c) Germany - DAX
d) Singapore - SGX
e) Japan - KOSPI

28. As part of Financial Inclusion drive, Govt. has directed Public Sector Banks(PSBs)
to have ATMs at all their branches. As per 2013-14 Budget speech, PSBs have given
an assurance to complete this task by
a) 31st March, 2015
b) 31st December, 2014
c) 31st March, 2014
d) 31st December, 2015
e) 30th September, 2014

ANSWERS:
1. a 2. c 3. d 4. e 5. e 6. b 7. c 8. b 9. a 10.e
11.d 12.b 13.a 14.a 15.b 16.a 17.c 18.d 19.d 20.a
21.e 22.a 23.d 24.c 25.b 26.d 27.e 28.c