| Name of Bank | Headquarter | Formation |
Chairman/Managing Directors
| Slogan |
| Allahabad Bank | Kolkata | 1865 | Rakesh Sethi | A Tradition of Trust |
| Andhra Bank | Hyderabad | 1923 | C. V. R. Rajendran | For all your needs |
| Bank of Baroda | Baroda | 1908 | S. S. Mundra | India's International Bank |
| Bank of India | Mumbai | 1906 | Vijayalakshmi R. Iyer | Relationship beyondbanking |
| Bank of Maharashtra | Pune | 1935 | Sushil Muhnot | One Family, One Bank |
| Canara Bank | Banglore | 1906 | R. K. Dubey | Together we can |
| Central Bank of India | Mumbai | 1911 | Rajeev Rishi | Central to you since 1911 |
| Corporation Bank | Mangalore | 1906 | Sadhu Ram Bansal | Prosperity to all |
| Dena Bank | Mumbai | 1938 | Ashwani Kumar | Your Trusted Family Bank Taking Banking |
| Indian Bank | Chennai | 1907 | T. M. Bhasin | Technology to the Common Man |
| Indian Overseas Bank | Chennai | 1937 | M. Narendra | Good people to grow with |
| Oriental Bank of Commerce | New Delhi | 1943 | S. Lal Bansal | Where Every Individual is Committed |
| Punjab National Bank | New Delhi | 1895 | K. R. Kamath | The name you can bank upon |
| Punjab and Sind Bank | New Delhi | 1908 | Jatindraver Singh | Where service is a way of life |
| Syndicate Bank | Manipal | 1925 | Sudhir Kumar Jain | Faithful, Friendly |
| UCO Bank | Kolkata | 1943 | Arun Kaul | Honours yours trust |
| Union Bank of India | Mumbai | 1919 | Arun Tiwari | Good people to bank with |
| United Bank of India | Kolkata | 1950 | Deepak Narang, Shri Sanjay Aryan | The Bank that begins with U |
| Vijaya Bank | Banglore | 1931 | V. Kannan | A Friend you can bank upon |
Sunday, 9 November 2014
Indian Banks and their Headquarter, Heads and Slogan
Sunday, 2 November 2014
BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS
1. Export Oriented Units can retain ___ % of their export earnings in foreign currency.
A. 50
A. 50
B. 100
C. 80
D. 66.67
E. None of these
E. None of these
2. Foreign investment in private banks, (in aggregate including FDI, FII, NRI, etc.) in India is permitted up to ____%
A. 99
B. 74
C. 49
D. 24
E. None of these
E. None of these
3. The minimum shareholding of RBI in SBI should be ___% as per SBI Act.
A. 50
B. 59
C. 51
D. 55
E. None of these
E. None of these
4. RBI pays interest on CRR balances of banks at _____.
A. Bank Rate
B. Repo Rate
C. Bank Rate minus 2%
C. Bank Rate minus 2%
D. Zero %
E. None of these
E. None of these
5. The three pillars of the Basel II framework are :
A. Minimum capital requirements
B. Asset - Liability Management
C. Market discipline
D. Supervisory review
E. a, c & d
6. The Code of Bank's Commitment has been issued by :
A. RBI
B. SBI
C. IBA
D. BCSBI
D. BCSBI
E. None of these
7. For declaring dividend, banks should have a CRAR of at least ____% for the preceding 2 years, and net NPA of less than _____%.
A. 11, 3
B. 9, 7
C. 10, 5
D. 9, 5
E. None of these
E. None of these
8. After ________, foreign banks operating in India will be freed of RBI imposed restrictions on their operations and treated on par with Indian banks.
A. April, 2008
B. April, 2009
C. April, 2010
C. April, 2010
D. April, 2015
E. None of these
E. None of these
9. Under Section 19(1) of the Banking Regulation Act, 1949, para- banking activities refer to :
A. leasing
B. hire purchase finance
C. factoring
C. factoring
D. credit card operations
E. only a, b & c
E. only a, b & c
10. The percentage of profit that a bank is required to transfer to its reserve fund as per Banking Regulation Act is ______%.
A. 25
B. 20
C. 30
D. 50
E. None of these
E. None of these
11. Interest payable on savings bank accounts is?
A. De-regulated by RBI
B. Regulated by State Governments
C. Regulated by Central Govt
D. Regulated by RBI
E. Regulated by Finance Minister
12. The usual deposit accounts of banks are?
A. Current accounts, electricity accounts and insurance premium accounts.
B. Current accounts, post office savings, bank accounts and term deposit accounts.
C. Loan accounts, savings bank accounts and term deposit accounts.
D. Current accounts, savings bank acco- unts and term deposit accounts.
E. Current bill accounts and term deposit accounts.
13.Fixed deposits and recurring deposits are?
A. Repayable after an agreed period
B. Repayable on demand
C. Not repayable
D.Repayable after death of depositors
E.Repayable on demand or after an agreed period as per bank's choice
14. Accounts are allowed to be operated by cheques in respect of?
A. Both savings bank accounts and fixed deposit accounts.
B. Savings bank accounts and current accounts.
C. Both savings bank accounts and loan accounts.
D. Both savings bank accounts and cash accounts only.
E. Both current accounts and fixed deposit accounts.
15. Which of the following is correct statement?
A. No interest is paid on current deposit accounts.
B. Interest is paid on current accounts at the same rate as term deposit accounts.
C. The rate of interest on current accounts and savings accounts are the same.
D. No interest is paid on any deposit by the bank.
E. Savings deposits are the same as current deposits.
16. Banking services delivered to a customer by means of a computer control system that does not directly involve banks branch is called?
A. Universal banking B. Virtual banking
C. Narrow banking
D. Brick & Mortal banking
E. None
17. Financial inclusion means provision of ?
A. Financial services namely payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the bank
B. Ration at affordable cost to persons not yet given the same
C. House at affordable cost to persons not yet given the same
D. Food at affordable cost to persons not yet given the same
E. Education at affordable cost to persons not yet given the same
18. When a bank returns a cheque unpaid, it is called?
A. Payment of the cheque
B. Drawing of the cheque
C. Canceling of the cheque
D. Dishonor of the cheque
E. Taking of the cheque
19. Who is the Chairman of the committee constituted by RBI to study issues and concerns in the Micro Finance Institutions (MFI) Sector?
A. Y.H Malegam
B. Dr. KC Chakraborty
C. C. Rangrajan
C. C. Rangrajan
D. M. Damodaran
E. Usha Thorat
E. Usha Thorat
20. Which of the following types of accounts are known as 'Demat Accounts'?
A. Accounts which are Zero Balance
B. Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
C. Accounts in which shares of various companies are traded in electronic form
D. Accounts which are operated through internet banking facility
E. None of the above
21. 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.
22. 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
D. Insurance Banking
E. Deposit Insurance
23. 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
24. 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
E. None
25. 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
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
26. Largest shareholder (in percentage share holding) of a Nationalized bank is ?
A. RBI
B. NABARD
C. LIC
D. Govt of India
D. Govt of India
E. IBA
27. An account that can be opened by business organisations and also individuals is known as a?
A. Term deposit
B. Checking Account
C. Saving Bank deposit
D. No Frills Accounts
C. Saving Bank deposit
D. No Frills Accounts
E. Current deposit
28. A worldwide financial messaging network which exchanges messages between banks and financial institutions is known as?
A. CHAPS
B. SWIFT
C. NEFT
D. SFMS
D. SFMS
E. CHIPS
29. Buy now & pay later refers to?
A. Foreign Currency
B. Internet Banking
C. US Dollars
C. US Dollars
D. Traveler's cheques
E. Credit Cards
E. Credit Cards
30. Which one of the following is not 'Money Market Instrument'?
A. Treasury Bills
B. Commercial Paper
C. Fixed Deposit
C. Fixed Deposit
D. Equity Shares
E. None
E. None
31. Which one of the following is a retail banking product?
A. Home Loans
B. Working capital finance
C. Corporate Term Loans
D. All the above
E. None
32. Finance Ministry has asked the RBI to allow common ATMs that will be owned and managed by non-banking entities hoping to cut transaction costs for banks. Such ATMs are known as?
A. Black label ATMs
B. Offsite ATMs
C. On site ATM's or red ATMs
D. Third party ATMs
E. White label ATMs
33. Technological advancement in the recent times has given a new dimension to banks, mainly to which one of the following aspects?
A. New Age Financial Derivatives
B. Service Delivery Mechanism
C. Any Banking
D. Any type banking
E. Multilevel Marketing
E. Multilevel Marketing
34. Which of the following is NOT a function of the Reserve Bank of India?
A. Fiscal Policy Functions
B. Exchange Control Functions
C. Issuance, Exchange and Destruction of currency notes
D. Monetary Authority Functions
E. Supervisory and Control Functions
35. Which of the following is NOT required for opening a bank account?
A. Identity Proof
B. Address Proof
C. Recent Photographs
D. Domicile Certificate
C. Recent Photographs
D. Domicile Certificate
E. None
36. What is the maximum deposit amount insured by DICGC?
A. Rs. 2,00,000 per depositor per bank
B. Rs. 2,00,000 per depositor across all banks
C. Rs. 1,00,000 per depositor per bank
D. Rs. 1,00,000 per depositor across all bank
E. None
37. The Biggest employee in the Private Banking Sector is?
A. ICICI
B. HDFC
C. AXIS Bank
D. YES Bank
E. None of these
38. With reference to a cheque who is drawee?
A. The bank that collects cheque.
B. The payee's bank.
C. The endorsee's bank.
D. The endorser's bank.
E. The bank upon which the cheque is drawn.
39. In which of the following fund transfer mechanisms, funds can be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?
A. RTGS
B. NEFT
C. TT
D. EFT
E. MT
40. Banking Ombudsman Scheme is appli- cable to the business of ?
A. All Scheduled commercial banks excluding RRBs.
B. All Scheduled commercial banks including RRBs.
C. Only Public Sector Banks
D. All Banking Companies
E. All scheduled banks except private banks.
D. YES Bank
E. None of these
38. With reference to a cheque who is drawee?
A. The bank that collects cheque.
B. The payee's bank.
C. The endorsee's bank.
D. The endorser's bank.
E. The bank upon which the cheque is drawn.
39. In which of the following fund transfer mechanisms, funds can be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?
A. RTGS
B. NEFT
C. TT
D. EFT
E. MT
40. Banking Ombudsman Scheme is appli- cable to the business of ?
A. All Scheduled commercial banks excluding RRBs.
B. All Scheduled commercial banks including RRBs.
C. Only Public Sector Banks
D. All Banking Companies
E. All scheduled banks except private banks.
ANSWERS:
1) B 2) B 3) D 4) D 5) E 6) D 7) B 8) B 9) E 10) B
1) B 2) B 3) D 4) D 5) E 6) D 7) B 8) B 9) E 10) B
11) A 12) D 13) A 14) B 15) A 16) B 17) A 18) D 19) A 20) C
21) A 22) C 23) E 24) C 25) E 26) D 27) A 28) B 29) E 30) C
31) A 32) E 33) B 34) A 35) D 36) C 37) C 38) E 39) A 40) B
BANKING AWARENESS PRACTICE QUESTIONS
1. Nationalization of banks aimed at all of the following except?
A. Provision of adequate credit for agriculture, SME & exports.
B. Removal of control by a few capitalists.
C. Provision of credit to big industries only.
D. Access of banking to masses.
E. Encouragement of a new class of entrepreneurs.
A. Provision of adequate credit for agriculture, SME & exports.
B. Removal of control by a few capitalists.
C. Provision of credit to big industries only.
D. Access of banking to masses.
E. Encouragement of a new class of entrepreneurs.
2. Which one of the following banks is headed by a Woman CEO?
A. Bank of Baroda
B. HDFC Bank
C. Central Bank of India
D. PNB
C. Central Bank of India
D. PNB
E. ICICI
3. Base Rate is the rate below which no Bank can lend their funds. Who sets up this 'Base Rate' for Banks?
A. Individuals Banks Board
B. Ministry of Commerce
C. Ministry of Finance
D. RBI
E. Interest Rate Commission of India
E. Interest Rate Commission of India
4. What is a 'Debit Card'?
A. It is a card issued by a Rating Agency.
B. It is a card which can be used for withdrawing cash or making payment even in the absence of any balance in the account.
C. It is a card which can be used for withdrawing cash or making payment at Point of Sales (POS) if there is balance in the account.
D. It is a card issued to borrowers
E. It is a card which can be used for making STD calls.
5. Bad advances of a Bank are called?
A. Standard accounts
B. Book debts
C. Non Performing Assets
D. Out of order accounts
E. Overdrawn accounts
C. Non Performing Assets
D. Out of order accounts
E. Overdrawn accounts
6. Axis Bank is a?
A. Public Sector Bank
B. Private Sector Bank
C. Co-operative Bank
D. Foreign Bank
E. Gramin Bank
E. Gramin Bank
7. By increasing repo rate, the economy may observe the following effects ______
A. Rate of interest on loans and advances will be costlier.
B. Industrial output would be affected to an extent.
C. Banks will increase rate of interest on deposits.
D. Industry houses may borrow money from foreign countries.
E. All of these.
8. Increased interest rates, as is existing in the economy at present will_______
A. Lead to reduction in borrowings
B. Lead to lower GDP growth.
C. Mean higher cost of raw materials.
D. Mean lower cost of raw materials.
E. Mean higher wage bill.
9. Which of the following schemes is launched to provide pension to the members of unorganized sectors in India?
A. Swabhiman
B. Jeevan Dhara
C. Jeevan Kalyan
C. Jeevan Kalyan
D. ASHA
E. Swalamban
E. Swalamban
10. A cheque returned for insufficiency of funds. Payee will have right to issue notice and approach court of law for justice under section 138 of which act?
A. Indian Penal Code
B. Negotiable Instrument Act
C. Criminal Procedure Code
D. Payment and Settlement Act
E. Indian Contract Act
11.Mr. Rajendra had filed a complaint with Banking Ombudsman and is not satisfied with the decision. What is the next option available for him to get his problem redressed?
A. Write to the CMD of the Bank.
B. File an appeal before the Finance Minister.
C. File an appeal before the Banking Ombudsman again.
D. File an appeal before the Dy. Governor RBI.
E. Simply close the matter as going to court involves time and money.
12. Which of the following is an example of Financial assets?
A. National Saving Certificate
B. Infrastructure Bonds
C. Indira Vikas Patra
D. Krishi Vikas Patra
E. All of these
13. Bank branches which can undertake foreign exchange business directly are known as:
A. Authorized dealers
B. Foreign dealers
C. Overseas branches
D. Approved dealers
E. Exchange branches
C. Overseas branches
D. Approved dealers
E. Exchange branches
14. Insurance cover for bank deposits in our country is provided by ____
A. SBI
B. Govt of India
C. GIC
C. GIC
D. LIC
E. DICGC
15. The Financial Literacy does not include which of the following?
A. How to invest the funds
B. How to use the limited funds carefully
C. How to minimize the risks
D. How to reinvest the money earned
E. None of these
16. 'ADB' refers to-
A. Amedical Development Bank
B. Amedical Depository Bureau
C. Additional Debit Balance
D. Only a & b
E. Asian Development bank
17. When a banker talks about CDR, what is he talking about?
A. Corporate Debt Restructuring
B. Corporate Debt Rollover
C. Company Debt Rollover
D. Corporate Deposit Restructuring
E. Company Deposit Restructuring
18. Expand the term ALM as used in Banking/Finance sector?
A. Asset Liability Management
B. Asset Liability Maturity
C. Asset Liability Mismatch
D. Asset Liability Manpower
E. Asset Liability Maintenance
19. Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are terms most closely related to which of the following industries/ markets?
A. Capital Market
B. Banking industry
C. Commodities market
D. Money Market
C. Commodities market
D. Money Market
E. Mutual funds
20. What is the maximum period for which domestic term deposits are normally accepted by the banks in our country?
A. 3 yr
B. 5 yr
C. 7 yr
D. 10 yr
E.12 yr
21. If you wish to purchase some US Dollars for your travel abroad, you should approach?
A. The Ministry of Finance
B. The US Embassy
C. Any Bank Branch authorized to do such activity
D. The Reserve Bank of India
E. External Affairs Ministry
22. What does the letter 'L' stands for in the term LAF commonly used in financial/economic news?
A. Liquidity
B. Least
C. Liabilities
D. Long
D. Long
E. Liquid
23. Which of the following is not classified as a Commercial Bank?
A. Public Sector Bank
B. Foreign Bank
C. Private Sector Bank
D. Regional Rural Bank
E. Urban Cooperative Bank
D. Regional Rural Bank
E. Urban Cooperative Bank
24. Which of the following is not the name of the a Banking Organization?
A. HDFC
B. IDBI
C. YES
D. SEBI
D. SEBI
E. ICICI
25. Money laundering means
A. Concealment of income source mainly to avoid income tax
B. Money acquired from undisclosed sources and deposited in foreign banks
C. Money acquired from undisclosed sources and deposited in foreign banks
D. Process of conversion of money obtained illegally to appear to have originated from legitimate sources to convert black money into white money
E. Money acquired from drug trafficking
26. Monetary Policy as an arm of the economic policy is administered by
A. Government of India
A. Government of India
B. RBI
C. SBI
C. SBI
D. Govt of the respective states
E. None
E. None
27. Which of the following is not a primary function of a Bank?
A. Granting loans
B. Collecting cheques/ drafts of Customers
C. Arranging VISA for students for abroad education
D. Issuing bank drafts
E. Selling Gold/Silver Coins.
E. Selling Gold/Silver Coins.
28. Reserves that can act as a liquidity buffer for Commercial Banks during crisis times are
A. CAR
B. CRR
C. CAR & CRR
D. CRR & SLR
D. CRR & SLR
E. SLR
29. The Capital Market of Indian financial system deals with which of the following funds?
A. Hedge funds
B. Short-term funds
C. Long-term Funds
D. Government Funds
C. Long-term Funds
D. Government Funds
E. None of these
30. Which of the below acts as the principle regulator in the capital market in India?
A. IRDA
B. RBI
C. SIDBI
D. SEBI
D. SEBI
E. None of these
31. The security which is a claim on the government and is a secure financial instrument guarantees certainty of both capital and interest is called?
A. Gilt-Edged Security
B. Call Money
C. Treasury Bills
D. Certificate of Deposits
E. None of these
D. Certificate of Deposits
E. None of these
32. Banks generally borrow funds from which of the following money markets to meet the mandatory Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements as stipulated by the Central bank?
A. Notice Money Market
B. Call Money Market
C. Bill Market
D. Money Market
E. None of these
E. None of these
33. Which one of the following agency is a creditor's rating agency?
A. ICRA
B. CARE
C. CRISIL
D. All of the Above
D. All of the Above
E. None of these
34. Which of the following bank acts as a government banker?
A. State Bank of India
B. All Public Sector Banks
C. Co-operative Banks
D. Scheduled Banks
E. None of these
35. Reserve Bank of India was setup on the recommendations of which of the following commission/committee?
A. Royal Commission
B. Hilton Young Commission
C. Dantwala Committee
D. D R Mehta Commission
E. None of these
36. The Central bank of India, RBI, reviews the monetary policy for every
A. Three Months
B. Six Months
C. Nine Months
C. Nine Months
D. Twelve Months
E. None of these
E. None of these
37. The Deposit insurance facility provided by the DICGC is not available for which of the following
A. LIC
B. GIC
C. SIDBI
D. NBFCs
D. NBFCs
E. None of these
38. Which of the following is a Develop- ment Bank in India?
A. IFCI
B. IDBI
C. NHB
D. All of the Above
E. None of these
D. All of the Above
E. None of these
39. The bank which refinances the loans given to the poor and weaker sections to construct or buy houses is
A. SIDBI
B. IDBI
C. NHB
D. IIBI
D. IIBI
E. None of these
40. ACH is a nationwide automated electronic system that monitors and administers the process of check and fund clearance between banks. Expand ACH.
A. Automatic Check Clearing House
B. Automated Check House
C. Automated Clearing House
D. Automatic Clearing House
E. None of these
ANSWERS:
1) C 2) E 3) A 4) C 5) A 6) B 7) A 8)C 9) E 10) B
1) C 2) E 3) A 4) C 5) A 6) B 7) A 8)C 9) E 10) B
11) B 12) D 13) A 14) A 15) E 16) E 17) A 18) A 19) B 20) D
21) C 22) A 23) E 24) D 25) D 26) B 27) C 28) D 29) C 30) D
31) A 32) B 33) D 34) A 35) B 36) A 37) D 38) D 39) C 40) C
Sunday, 19 October 2014
BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS
1. Which of the following is not a debt instrument in banking parlance?
a) a Certificate of deposit
b) Bonds
c) Stocks
d) Commercial papers
e) Debentures
2. Which of the following is NOT a scheduled Commercial Bank?
a) HDFC Bank
b) Axis Bank
c) IDBI Bank
d) NABARD
e) SBI
3. Which of the following organizations/ agencies is not associated with banking and Finance?
a) SEBI
b) AMFI
c) RBI
d) ECGC
e) ONGC
4. Who amongst the following Padma Bhushan Awardees is a famous banker?
a) Mr. Azim H. Premji
b) Ms. Chanda Kochhar
c) Ms. Kapila Vatsyayan
d) Mrs. Waheeda Rehman
e) Mr. Brajesh Mishra
5. Which of the following has been renamed as "Annual Policy Statement" by the Reserve Bank of India?
a) Busy season banking policy
b) Slack season banking policy
c) Monetary and credit policy
d) Annual statistical report
e) None of the above
6. Which committee has recommended introduction of smart card?
a) Rangarajan committee
b) Saraf committee
c) Nayak committee
d) Pannirselvan committee
e) None of the above
7. Which committee had formulated consultative profile in connection with electronic funds transfer?
a) A.K. Purwar committee
b) Y V Reddy committee
c) K S Shere committee
d) S. A. Dave committee
e) None of the above
8. The process of transformation of physical shares, commercial paper or certificate of deposit into
electronic form is called as:
a) Electronic clearing service
b) Electronic securitization
c) Share truncation
d) Dematerialisation
e) None of the above
9. Providing banking services to a customer without his entrance inside the bank's branch is called
as:
a) Virtual banking
b) Relationship banking
c) Universal banking
d) Mobile banking
e) None of the above
10. Where is the headquarters of "Society for worldwide Inter bank Financial Telecommunication
- SWIFT" situated?
a) New York
b) Los Angels
c) Brussels
d) Hague
e) None of the above
11. Where has National Financial Switch of IDRBT established?
a) Mumbai
b) New Delhi
c) Hyderabad
d) Bangalore
e) None of the above
12. If the employees of the bank go on strike, it results in?
a) Operational risk
b) Employee risk
c) Credit risk
d) Market risk
e) Systemic risk
13. Which of the following is not included in three pillars of BASEL capital accord?
a) Minimum capital requirement
b) Supervisory review
c) Market discipline
d) Core banking solution
e) None of the above
14. When ICICI Limited merged with ICICI bank?
a) 1st August, 2000
b) 1st August 2001
c) 1st August, 2002
d) 1st August, 2003
e) None of the above
15. Which bank has changed its name to AXIS bank limited?
a) Centurion bank
b) Times bank
c) Bank of Punjab Limited
d) Bank of Karad
e) UTI bank limited
16. Times Bank Limited merged with:
a) HDFC Bank
b) Bank of India
c) Punjab National Bank
d) Central Bank of India
e) None of the above
17. Which of the following Banks & Head Offices is not correct?
a) State Bank of Bikaner & Jaipur - Jaipur
b) State Bank of Hyderabad - Hyderabad
c) State Bank of Mysore - Mysore
d) State Bank of Patiala - Patiala
e) State Bank of Travancore - Thiruvananthapuram
18. CCIL stands for:
a) Cement Corporation of India Limited
b) Central Clearing Company Ltd.
c) Clearing Corporation of India Limited
d) Cash Credit facility in Installment Lending
e) None of the above
19. When was Reserve Bank of India Nationalized?
a) 1947
b) 1948
c) 1949
d) 1950
e) 1952
20. Which one of the following is the new sub-category of the commercial real estate sector (CRE) as per the latest RBI directive?
a) Residential projects
b) Commercial projects
c) Industrial projects
d) SEZ projects
e) None of the above
21. In India, the Chit funds are governed / Regulated by ___?
a) RBI
b) Central Government
c) State Governments
d) Local Bodies
e) State Finance Corporation
22. "The bank for a changing world" is the punch line of:
a) BNP Paribas
b) Scotia Bank
c) Royal Bank of Scotland
d) CITI Bank
e) American Express Bank
23. The RBI is also set to introduce a fifth Deputy Governor in the top management of the central
bank. The fifth Deputy Governor will be designated as ___
a) COO (Chief Operating Officer)
b) CFO
c) CEO
d) CAO
e) None of these
24. What is the RBI's model for rating of Indian banks?
a) CAMEL
b) CAMELS
c) CRISIL
d) CARE
e) None of these
25. Oriental Bank of Commerce was established in the year:
a) 1943
b) 1953
c) 1963
d) 1973
e) 1983
26. What is the Punch line of "ICICI Bank"?
a) World's Local Bank
b) We Understand Your World
c) Hum Haina …
d) Serving to Empower
e) Good people to grow with
27. Who is the CMD of Union Bank of India?
a) R. M. Malla
b) S. Raman
c) M D. Mallya
d) T. M. Bhasin
e) Arun Tiwari
28. Which among the following is correct full form of CAS in context with banking markets in India?
a) Cash Authorization Scheme
b) Credit Authorization Scheme
c) Credit Access System
d) Credit Arrangement System
e) Cash Accreditation Scheme
29. A medium term note (MTN) programme is issued to ___
a) Provide loans
b) Raise Funds
c) Sell Equity
d) Purchase shares
e) Any of the above
30. Which among the following regulate the commodity markets in India?
1) RBI
2) SEBI
3) Forward Market Commission
Choose the correct option from the codes given below:
a) Only 1 & 2
b) Only 2 & 3
c) Only 1 & 3
d) Only 3
e) None of the above
31. Which among the following is a major qualitative control measure used by RBI?
a) Bank Rate Policy
b) Open Market Operations
c) Ways and means advances
d) Reserve Ratio Requirements
e) Margin Requirements
32. Which of the following is known as plastic money?
a) Bearer cheques
b) Credit cards
c) Demand drafts
d) Gift cheques
e) None of these
ANSWERS:
1) c 2) d 3) e 4) b 5) c 6) b 7) c 8) d 9) a 10) c
11) c 12) a 13) d 14) c 15) e 16) a 17) c 18) c 19) c 20) a
21) c 22) a 23) a 24) b 25) a 26) c 27) e 28) b 29) b 30) d
31) e 32) b
a) a Certificate of deposit
b) Bonds
c) Stocks
d) Commercial papers
e) Debentures
2. Which of the following is NOT a scheduled Commercial Bank?
a) HDFC Bank
b) Axis Bank
c) IDBI Bank
d) NABARD
e) SBI
3. Which of the following organizations/ agencies is not associated with banking and Finance?
a) SEBI
b) AMFI
c) RBI
d) ECGC
e) ONGC
4. Who amongst the following Padma Bhushan Awardees is a famous banker?
a) Mr. Azim H. Premji
b) Ms. Chanda Kochhar
c) Ms. Kapila Vatsyayan
d) Mrs. Waheeda Rehman
e) Mr. Brajesh Mishra
5. Which of the following has been renamed as "Annual Policy Statement" by the Reserve Bank of India?
a) Busy season banking policy
b) Slack season banking policy
c) Monetary and credit policy
d) Annual statistical report
e) None of the above
6. Which committee has recommended introduction of smart card?
a) Rangarajan committee
b) Saraf committee
c) Nayak committee
d) Pannirselvan committee
e) None of the above
7. Which committee had formulated consultative profile in connection with electronic funds transfer?
a) A.K. Purwar committee
b) Y V Reddy committee
c) K S Shere committee
d) S. A. Dave committee
e) None of the above
8. The process of transformation of physical shares, commercial paper or certificate of deposit into
electronic form is called as:
a) Electronic clearing service
b) Electronic securitization
c) Share truncation
d) Dematerialisation
e) None of the above
9. Providing banking services to a customer without his entrance inside the bank's branch is called
as:
a) Virtual banking
b) Relationship banking
c) Universal banking
d) Mobile banking
e) None of the above
10. Where is the headquarters of "Society for worldwide Inter bank Financial Telecommunication
- SWIFT" situated?
a) New York
b) Los Angels
c) Brussels
d) Hague
e) None of the above
11. Where has National Financial Switch of IDRBT established?
a) Mumbai
b) New Delhi
c) Hyderabad
d) Bangalore
e) None of the above
12. If the employees of the bank go on strike, it results in?
a) Operational risk
b) Employee risk
c) Credit risk
d) Market risk
e) Systemic risk
13. Which of the following is not included in three pillars of BASEL capital accord?
a) Minimum capital requirement
b) Supervisory review
c) Market discipline
d) Core banking solution
e) None of the above
14. When ICICI Limited merged with ICICI bank?
a) 1st August, 2000
b) 1st August 2001
c) 1st August, 2002
d) 1st August, 2003
e) None of the above
15. Which bank has changed its name to AXIS bank limited?
a) Centurion bank
b) Times bank
c) Bank of Punjab Limited
d) Bank of Karad
e) UTI bank limited
16. Times Bank Limited merged with:
a) HDFC Bank
b) Bank of India
c) Punjab National Bank
d) Central Bank of India
e) None of the above
17. Which of the following Banks & Head Offices is not correct?
a) State Bank of Bikaner & Jaipur - Jaipur
b) State Bank of Hyderabad - Hyderabad
c) State Bank of Mysore - Mysore
d) State Bank of Patiala - Patiala
e) State Bank of Travancore - Thiruvananthapuram
18. CCIL stands for:
a) Cement Corporation of India Limited
b) Central Clearing Company Ltd.
c) Clearing Corporation of India Limited
d) Cash Credit facility in Installment Lending
e) None of the above
19. When was Reserve Bank of India Nationalized?
a) 1947
b) 1948
c) 1949
d) 1950
e) 1952
20. Which one of the following is the new sub-category of the commercial real estate sector (CRE) as per the latest RBI directive?
a) Residential projects
b) Commercial projects
c) Industrial projects
d) SEZ projects
e) None of the above
21. In India, the Chit funds are governed / Regulated by ___?
a) RBI
b) Central Government
c) State Governments
d) Local Bodies
e) State Finance Corporation
22. "The bank for a changing world" is the punch line of:
a) BNP Paribas
b) Scotia Bank
c) Royal Bank of Scotland
d) CITI Bank
e) American Express Bank
23. The RBI is also set to introduce a fifth Deputy Governor in the top management of the central
bank. The fifth Deputy Governor will be designated as ___
a) COO (Chief Operating Officer)
b) CFO
c) CEO
d) CAO
e) None of these
24. What is the RBI's model for rating of Indian banks?
a) CAMEL
b) CAMELS
c) CRISIL
d) CARE
e) None of these
25. Oriental Bank of Commerce was established in the year:
a) 1943
b) 1953
c) 1963
d) 1973
e) 1983
26. What is the Punch line of "ICICI Bank"?
a) World's Local Bank
b) We Understand Your World
c) Hum Haina …
d) Serving to Empower
e) Good people to grow with
27. Who is the CMD of Union Bank of India?
a) R. M. Malla
b) S. Raman
c) M D. Mallya
d) T. M. Bhasin
e) Arun Tiwari
28. Which among the following is correct full form of CAS in context with banking markets in India?
a) Cash Authorization Scheme
b) Credit Authorization Scheme
c) Credit Access System
d) Credit Arrangement System
e) Cash Accreditation Scheme
29. A medium term note (MTN) programme is issued to ___
a) Provide loans
b) Raise Funds
c) Sell Equity
d) Purchase shares
e) Any of the above
30. Which among the following regulate the commodity markets in India?
1) RBI
2) SEBI
3) Forward Market Commission
Choose the correct option from the codes given below:
a) Only 1 & 2
b) Only 2 & 3
c) Only 1 & 3
d) Only 3
e) None of the above
31. Which among the following is a major qualitative control measure used by RBI?
a) Bank Rate Policy
b) Open Market Operations
c) Ways and means advances
d) Reserve Ratio Requirements
e) Margin Requirements
32. Which of the following is known as plastic money?
a) Bearer cheques
b) Credit cards
c) Demand drafts
d) Gift cheques
e) None of these
ANSWERS:
1) c 2) d 3) e 4) b 5) c 6) b 7) c 8) d 9) a 10) c
11) c 12) a 13) d 14) c 15) e 16) a 17) c 18) c 19) c 20) a
21) c 22) a 23) a 24) b 25) a 26) c 27) e 28) b 29) b 30) d
31) e 32) b
Sunday, 12 October 2014
RBI Rates as on 30th September 2014 RBI's fourth bi-monthly monetary policy statement of 2014-15
★ Bank Rate: 9%
★ CRR (Cash Reserve Ratio): 4%
★ Repo Rate: 8%
★ Reverse Repo Rate: 7%
★ SLR (Statutory Liquidity Ratio): 22%
★ CRR (Cash Reserve Ratio): 4%
★ Repo Rate: 8%
★ Reverse Repo Rate: 7%
★ SLR (Statutory Liquidity Ratio): 22%
BANKING TERMINOLOGY
Bank Rate:
Bank rate is a rate of interest. It is an official rate of interest of RBI. It is also a minimum rate of interest at which RBI advances loans to Banks and financial institutions. RBI lends to banks and financial institutions by rediscounting the approved first class bills of exchange of banks as security. So this Bank rate is also called as Discount rate. It is also an instrument used for credit control.
★ RBI uses Bank rate to control inflation or deflation. If inflation in the country is high and it is keeping on mounting RBI increases the Bank rate in order to bring down the inflation. In case of deflation, RBI decrease the Bank rate which allows more money supply in the economy and deflation will be in control.
Cash Reserve Ratio (CRR):
Cash reserve ratio is a quantitative method of monetary control. This is an instrument used by RBI to control credit in the economy. Cash reserve ratio means the percentage of cash that scheduled banks need to be deposited with RBI. The percentage is calculated on the Net Demand and Time Liabilities (NDTL) of the bank deposits at any given point of time. This is a mandatory reserve to be kept by the banks to meet the unexpected withdrawals from customers.
Statutory Liquidity Ratio (SLR):
This is also a quantitative measure takes by RBI in order to control the credit supply in the economy. This is the minimum statutory reserve that scheduled banks must maintain with RBI at any given point of time. The statutory reserves are of liquid assets of banks like gold, cash in hand, Government securities, current account balances with other banks etc.
Repo Rate:
Repo rate or Repurchase Rate is at which RBI lends to banks for short periods. This is a debt instrument used by RBI to control money supply in the economy. In order to lend loan to banks, RBI ask Treasury bills and dated government securities as guarantee from banks. RBI repurchases those Government securities at a predetermined rate (which is known as Repo Rate) and date.
Reverse Repo Rate:
Reverse Repo rate is at which RBI barrow from banks. This is also a debt instrument used by RBI to control money supply in the economy. If RBI wants money then it will like to borrow from banks at a reverse repo rate by selling treasury bills at predetermined rate (which is known as Reverse Repo Rate) and dated government securities.
Bank rate is a rate of interest. It is an official rate of interest of RBI. It is also a minimum rate of interest at which RBI advances loans to Banks and financial institutions. RBI lends to banks and financial institutions by rediscounting the approved first class bills of exchange of banks as security. So this Bank rate is also called as Discount rate. It is also an instrument used for credit control.
★ RBI uses Bank rate to control inflation or deflation. If inflation in the country is high and it is keeping on mounting RBI increases the Bank rate in order to bring down the inflation. In case of deflation, RBI decrease the Bank rate which allows more money supply in the economy and deflation will be in control.
Cash Reserve Ratio (CRR):
Cash reserve ratio is a quantitative method of monetary control. This is an instrument used by RBI to control credit in the economy. Cash reserve ratio means the percentage of cash that scheduled banks need to be deposited with RBI. The percentage is calculated on the Net Demand and Time Liabilities (NDTL) of the bank deposits at any given point of time. This is a mandatory reserve to be kept by the banks to meet the unexpected withdrawals from customers.
Statutory Liquidity Ratio (SLR):
This is also a quantitative measure takes by RBI in order to control the credit supply in the economy. This is the minimum statutory reserve that scheduled banks must maintain with RBI at any given point of time. The statutory reserves are of liquid assets of banks like gold, cash in hand, Government securities, current account balances with other banks etc.
Repo Rate:
Repo rate or Repurchase Rate is at which RBI lends to banks for short periods. This is a debt instrument used by RBI to control money supply in the economy. In order to lend loan to banks, RBI ask Treasury bills and dated government securities as guarantee from banks. RBI repurchases those Government securities at a predetermined rate (which is known as Repo Rate) and date.
Reverse Repo Rate:
Reverse Repo rate is at which RBI barrow from banks. This is also a debt instrument used by RBI to control money supply in the economy. If RBI wants money then it will like to borrow from banks at a reverse repo rate by selling treasury bills at predetermined rate (which is known as Reverse Repo Rate) and dated government securities.
Banking Knowledge Practice Questions
1. Reserve Bank of India's reserve ratios are ....
a) SLR
b) CRR
c) REPO
d) Only a and b
e) Reverse REPO
2. If the bank rate is increased by RBI then ......
a) The lending rates of commercial banks also increases.
b) Cost of credit increases in the money market.
c) Demand for bank loans decreases.
d) Due to demand for goods will also decreases, inflation can be controlled.
e) All the above
3. If RBI wants to raise credit supply in the money market ......
a) RBI provide special schemes and gifts to promote more loans in market.
b) RBI decreases the bank rate.
c) RBI lend more money to banks.
d) RBI increases the bank rate.
e) None of these
4. Who acts as a custodian of cash reserves of scheduled banks ......
a) Reserve Bank of India
b) State Bank of India
c) Central Bank of India
d) Central Government of India
e) None of these
5. When does banks need to maintain mandatory reserve ratio?
a) Quarterly
b) Yearly (Financial)
c) Half yearly
d) At any given point of time
e) None of these
6. What is the rate charged by banks for discounting of approved bill of exchange?
a) Repo Rate
b) Reverse Repo Rate
c) Bank Rate
d) All the above
e) None of these
7. If RBI manipulate the Bank Rate then .......
a) Increase in supply of credit in economy.
b) Decrease in supply of credit in economy
c) Advance loans are stopped.
d) Either increase or decrease in the credit supply in economy.
e) Neither increase nor decrease in supply of credit in economy.
8. To arrest the rise in the price levels during inflation .......
a) RBI reduces the Bank Rate
b) RBI raises the Bank Rate
c) RBI manipulate the Bank Rate
d) All the above
e) None of these
9. Why does RBI need to change CRR or SLR?
a) To show that it is the supreme power for monetary system in India
b) To have grip over banking system
c) Depends upon the monetary requirements and conditions of the economy
d) Because corporate and big companies need more money to expand their business
e) All the above
10. Liquidity Adjustment Facility (LAF) mean .....
a) Advancing loans to banks in adjusting day to day mismatches in the liquidity.
b) Facilitates banks credit expansion.
c) Unsecured money market facility.
d) Maintaining the liquidity in the form of gold, cash and government securities.
e) None of these
11. Repo and Reverse Repo operations are .....
a) Reduction of excess of expenditure
b) Variable reserve ratio operations
c) Issuing and paying agent operations
d) Liquidity adjustment facility operations
e) None of these
12. When do banks get money at cheaper rate?
a) When CRR is increased
b) When Repo is lowered
c) When Reverse Repo is lowered
d) When SLR is lowered
e) None of these
13. Pulling out excess money from banks means .........
a) Raising CRR
b) Raising LAF
c) Reducing CRR
d) Reducing SLR
e) Keeping Variable Reserve Ratios unchanged
14. The rate of interest that RBI charge on banks for long term lending is .......
a) Repo Rate
b) Bank Rate
c) Reverse Repo Rate
d) Base Rate
e) None of these
15. Money available cheaper from RBI means .........
a) Bank rate is low when compared to previous bi monthly monetary policy
b) Repo Rate is low when compared to previous bi monthly monetary policy
c) Reverse repo rate is unchanged when compared to previous bi monthly monetary policy
d) Both a and b
e) None of these
16. When can RBI sell more government securities to banks?
a) When RBI increases the SLR
b) When RBI decreases the SLR
c) When RBI increases the CRR
d) When RBI decreases the CRR
e) None of these
17. Regional Rural Banks (RRBs) need to maintain their complete SLR in .......
a) Gold and cash
b) Loans and advances to rural poor
c) Government and other approved Securities
d) They need not maintain as sponsor bank maintains the SLR
e) None of these
18. Reverse Repo Rate is an instrument used by RBI in order to ........
a) Pull out excess liquidity in the economy.
b) Maintain liquidity at a certain level.
c) Increase the liquidity levels in the economy.
d) Decrease the liquidity in the banking system.
e) None of these
19. Identify the false statement from the following.
a) When RBI sells government securities to banks the main purpose of selling may be to raise more funds for banks.
b) When RBI buys the government securities from banks the main purpose of buying may be to pull out excess money from banks.
c) When RBI sells government securities to banks it is raising funds to governments in the form of borrowing.
d) When RBI repurchasing government securities for a short period from banks it is pumping more funds in the banking system.
e) None of these
20. Repurchasing the government securities means .......
a) RBI is lending to banks
b) Banks are lending to RBI
c) Government is lending to banks
d) RBI is lending to government
e) None of these
21. In RBI’s monetary policy, Liberal Money Policy means .......
a) Banks no need to deposit more excess cash as reserves.
b) Banks are asked for more and more deposits to be held with RBI.
c) CRR is Decreased
d) Both a and c
e) None of these
22. RBI’s fifth bi-monthly monetary policy statement of 2014-15 is/ was scheduled on .....
a) 30th Sep, 2014
b) 2nd Jan, 2014
c) 2nd Dec, 2014
d) 5th Aug, 2014
e) None of these
ANSWERS:
1-d, 2-e, 3-b, 4-a, 5-d, 6-c, 7-d, 8-b, 9-c, 10-a
11-d, 12-b, 13-a, 14-b, 15-d, 16-a, 17-c, 18-b, 19-e, 20-a, 21-d, 22-c
a) SLR
b) CRR
c) REPO
d) Only a and b
e) Reverse REPO
2. If the bank rate is increased by RBI then ......
a) The lending rates of commercial banks also increases.
b) Cost of credit increases in the money market.
c) Demand for bank loans decreases.
d) Due to demand for goods will also decreases, inflation can be controlled.
e) All the above
3. If RBI wants to raise credit supply in the money market ......
a) RBI provide special schemes and gifts to promote more loans in market.
b) RBI decreases the bank rate.
c) RBI lend more money to banks.
d) RBI increases the bank rate.
e) None of these
4. Who acts as a custodian of cash reserves of scheduled banks ......
a) Reserve Bank of India
b) State Bank of India
c) Central Bank of India
d) Central Government of India
e) None of these
5. When does banks need to maintain mandatory reserve ratio?
a) Quarterly
b) Yearly (Financial)
c) Half yearly
d) At any given point of time
e) None of these
6. What is the rate charged by banks for discounting of approved bill of exchange?
a) Repo Rate
b) Reverse Repo Rate
c) Bank Rate
d) All the above
e) None of these
7. If RBI manipulate the Bank Rate then .......
a) Increase in supply of credit in economy.
b) Decrease in supply of credit in economy
c) Advance loans are stopped.
d) Either increase or decrease in the credit supply in economy.
e) Neither increase nor decrease in supply of credit in economy.
8. To arrest the rise in the price levels during inflation .......
a) RBI reduces the Bank Rate
b) RBI raises the Bank Rate
c) RBI manipulate the Bank Rate
d) All the above
e) None of these
9. Why does RBI need to change CRR or SLR?
a) To show that it is the supreme power for monetary system in India
b) To have grip over banking system
c) Depends upon the monetary requirements and conditions of the economy
d) Because corporate and big companies need more money to expand their business
e) All the above
10. Liquidity Adjustment Facility (LAF) mean .....
a) Advancing loans to banks in adjusting day to day mismatches in the liquidity.
b) Facilitates banks credit expansion.
c) Unsecured money market facility.
d) Maintaining the liquidity in the form of gold, cash and government securities.
e) None of these
11. Repo and Reverse Repo operations are .....
a) Reduction of excess of expenditure
b) Variable reserve ratio operations
c) Issuing and paying agent operations
d) Liquidity adjustment facility operations
e) None of these
12. When do banks get money at cheaper rate?
a) When CRR is increased
b) When Repo is lowered
c) When Reverse Repo is lowered
d) When SLR is lowered
e) None of these
13. Pulling out excess money from banks means .........
a) Raising CRR
b) Raising LAF
c) Reducing CRR
d) Reducing SLR
e) Keeping Variable Reserve Ratios unchanged
14. The rate of interest that RBI charge on banks for long term lending is .......
a) Repo Rate
b) Bank Rate
c) Reverse Repo Rate
d) Base Rate
e) None of these
15. Money available cheaper from RBI means .........
a) Bank rate is low when compared to previous bi monthly monetary policy
b) Repo Rate is low when compared to previous bi monthly monetary policy
c) Reverse repo rate is unchanged when compared to previous bi monthly monetary policy
d) Both a and b
e) None of these
16. When can RBI sell more government securities to banks?
a) When RBI increases the SLR
b) When RBI decreases the SLR
c) When RBI increases the CRR
d) When RBI decreases the CRR
e) None of these
17. Regional Rural Banks (RRBs) need to maintain their complete SLR in .......
a) Gold and cash
b) Loans and advances to rural poor
c) Government and other approved Securities
d) They need not maintain as sponsor bank maintains the SLR
e) None of these
18. Reverse Repo Rate is an instrument used by RBI in order to ........
a) Pull out excess liquidity in the economy.
b) Maintain liquidity at a certain level.
c) Increase the liquidity levels in the economy.
d) Decrease the liquidity in the banking system.
e) None of these
19. Identify the false statement from the following.
a) When RBI sells government securities to banks the main purpose of selling may be to raise more funds for banks.
b) When RBI buys the government securities from banks the main purpose of buying may be to pull out excess money from banks.
c) When RBI sells government securities to banks it is raising funds to governments in the form of borrowing.
d) When RBI repurchasing government securities for a short period from banks it is pumping more funds in the banking system.
e) None of these
20. Repurchasing the government securities means .......
a) RBI is lending to banks
b) Banks are lending to RBI
c) Government is lending to banks
d) RBI is lending to government
e) None of these
21. In RBI’s monetary policy, Liberal Money Policy means .......
a) Banks no need to deposit more excess cash as reserves.
b) Banks are asked for more and more deposits to be held with RBI.
c) CRR is Decreased
d) Both a and c
e) None of these
22. RBI’s fifth bi-monthly monetary policy statement of 2014-15 is/ was scheduled on .....
a) 30th Sep, 2014
b) 2nd Jan, 2014
c) 2nd Dec, 2014
d) 5th Aug, 2014
e) None of these
ANSWERS:
1-d, 2-e, 3-b, 4-a, 5-d, 6-c, 7-d, 8-b, 9-c, 10-a
11-d, 12-b, 13-a, 14-b, 15-d, 16-a, 17-c, 18-b, 19-e, 20-a, 21-d, 22-c
Monday, 6 October 2014
Secondary Services of Banks
Remittances:
Remitting money from one bank branch to another bank branch or its own bank branches is called Remittances. This can be done through various means like NEFT, RTGS, Demand Draft, Bankers'
Cheque. In olden days banks used to remit money through Mail Transfer (MT), Telegraphic Transfer (TT) etc. For international transactions banks use Outward Remittance and Travelers' Cheque (TC).
National Electronic Funds Transfer (NEFT):
This system was introduced by RBI in order to transfer funds within the banking system through electronic format. Under this system, an individual or a business entity can transfer funds from a paisa to any amount as it has no upper limit. This is a reliable, secure, efficient and economical system of funds transfer and clearing in banking system. A service charge is collected per transaction form the customer.
Real Time Gross Settlement System (RTGS):
This is also an Electronic Fund Transfer System like NEFT. But an important difference is seen in settlement. This is settled on gross basis at real time. Each and every remittance transaction will be settled individually. These transactions are irrevocable. Each participating bank need to open an account with RBI for settlement of funds. The settlement is done to the banks' account with RBI on individual transaction basis. For both NEFT and RTGS, we need have IFSC code of beneficiary in order to remit the funds.
Bankers' Cheque (BC) and Demand Draft (DD):
This is also an oldest method of fund transfer with confirmed and secure way of transfer of funds. These are the document based negotiable instruments used to transfer funds. An applicant needs to purchase a bankers cheque or demand draft from a bank in order to pay the payee on the same bank's different branch.
★ Bankers' Cheque is issued on its own branch where as demand draft is issued on other branches. Bankers' cheque is also called as pay order. The life of the BC is of three months from the date of issue and the life of DD is six months from the date of issue. And it can be revalidated.
★ BC and DD can be purchased across the counters through cash but as per RBI anti money laundering and income tax provisions Rs.50000 and above need to be routed through bank account only. Commission is the income generation from DD and BC / PO to Banks. These types of services are being used less now a days due to introduction of online payment system.
Remitting money from one bank branch to another bank branch or its own bank branches is called Remittances. This can be done through various means like NEFT, RTGS, Demand Draft, Bankers'
Cheque. In olden days banks used to remit money through Mail Transfer (MT), Telegraphic Transfer (TT) etc. For international transactions banks use Outward Remittance and Travelers' Cheque (TC).
National Electronic Funds Transfer (NEFT):
This system was introduced by RBI in order to transfer funds within the banking system through electronic format. Under this system, an individual or a business entity can transfer funds from a paisa to any amount as it has no upper limit. This is a reliable, secure, efficient and economical system of funds transfer and clearing in banking system. A service charge is collected per transaction form the customer.
Real Time Gross Settlement System (RTGS):
This is also an Electronic Fund Transfer System like NEFT. But an important difference is seen in settlement. This is settled on gross basis at real time. Each and every remittance transaction will be settled individually. These transactions are irrevocable. Each participating bank need to open an account with RBI for settlement of funds. The settlement is done to the banks' account with RBI on individual transaction basis. For both NEFT and RTGS, we need have IFSC code of beneficiary in order to remit the funds.
Bankers' Cheque (BC) and Demand Draft (DD):
This is also an oldest method of fund transfer with confirmed and secure way of transfer of funds. These are the document based negotiable instruments used to transfer funds. An applicant needs to purchase a bankers cheque or demand draft from a bank in order to pay the payee on the same bank's different branch.
★ Bankers' Cheque is issued on its own branch where as demand draft is issued on other branches. Bankers' cheque is also called as pay order. The life of the BC is of three months from the date of issue and the life of DD is six months from the date of issue. And it can be revalidated.
★ BC and DD can be purchased across the counters through cash but as per RBI anti money laundering and income tax provisions Rs.50000 and above need to be routed through bank account only. Commission is the income generation from DD and BC / PO to Banks. These types of services are being used less now a days due to introduction of online payment system.
Banking Knowledge Practice Questions
1. Where is the head office of Syndicate Bank located?
a) Bangalore
b) Manipal
c) New Delhi
d) Mumbai
e) Kolkata
2. NABARD support lending to farmers, rural artisans and other non farmers in rural areas through ......
a) Co-operative Banks
b) Regional Rural Banks
c) Land Development Banks
d) Scheduled Commercial Banks
e) All the Above
3. Identify the macro economic policy/ policies of India .......
a) Monetary policy
b) Fiscal policy
c) Regulatory policy
d) Only a and b
e) None of these
4. RBI uses bank rate in order to control .......
a) Money supply, volume of bank credit and cost of bank credit.
b) Liquidity
c) Cash holdings of banks
d) Financial position of banks
e) None of these
5. What are the steps taken by RBI, in order to meet demand and time liabilities of banks in time?
a) Banks are asked to keep mandatory regulatory cash reserve with RBI
b) Banks are asked to maintain CRR
c) Both a and b as they are same
d) Banks are asked to keep enough cash in cash counters
e) None of these
6. India's own payment gate way 'RuPay' works in which of the following channel/s?
a) Automated Teller Machines
b) Point of Sales
c) Online Sales
d) All of the Above
e) None of these
7. Monetary policy is used by RBI for controlling.......
a) Inflation or deflation
b) Exports or imports
c) Indian rupee or foreign currency
d) State or Central Government
e) None of these
8. Identify the difference between commercial paper and certificate of deposit ........
a) Certificate of deposit is issued at discount while commercial paper at face value
b) Certificate of deposit is a financial instrument while commercial paper is a financial statement
c) Certificate of deposit is issued by banks while commercial paper is issued by firms or public limited companies
d) All the above
e) None of these
9. When does money market is called as 'Tight'?
a) When the call money rate is low
b) When the call money rate is high
c) When money availability in the market is very high
d) When participants in the money market are ready to lend
e) None of these
10. If a bank needs to attract Provident Fund Deposits, what are the criteria that banks must possess?
a) Profitability in preceding 3 years
b) Minimum of Rs.200 crores as net worth
c) Capital adequacy of 9%
d) All the above
e) None of these
11. If the stock markets are declining then it is called as .......
a) Bull run
b) Down run
c) Bear run
d) Stage
e) None of these
12. A promissory note that is not secured by any collateral or not secured by a mortgage or lien marked on any property is ....... instrument.
a) Debenture
b) Bill of exchange
c) Commercial bill
d) Currency bill
e) None of these
13. What does RBI do if a Re.1 note is issued by Government of India?
a) RBI abject the issuance
b) RBI put into circulation
c) RBI converts Re.1 in to higher denomination of Rs.10 and more.
d) RBI asks banks to not to support for circulation
e) None of these
14. RBI issue currency rupee notes on bases of ........
a) By holding minimum value of gold coins and bullion
b) By holding minimum foreign securities as a part of the total approved assets
c) By holding minimum amount of commodities which are trading in commodity exchanges
d) Only a and b
e) All the above
15. Which of the following entities are applicable for the new listing obligations and disclosure requirements of SEBI regulations, 2014?
a) Listing of debentures
b) Listing of bonds
c) All listed companies
d) All the above
e) None of these
16. National Payments Corporation of India (NPCI) is being used by banks for ......
a) Remittance
b) Clearing and settlement
c) Payments and settlements
d) Advisory service
e) None of these
17. NOSTRO account means .......
a) An account opened by foreign citizens other than NRIs in India with Indian banks in INR for their expenses in India.
b) An account opened by foreign citizens other than NRIs in India with foreign banks in foreign currency to convert Indian rupee to that currency and remit back to their own country.
c) An account opened by an Indian bank in the foreign countries in their banks and in that country currency for settlement in that country's currency.
d) An account opened by a foreign bank in India with their corresponding banks in INR for settlements in INR.
e) None of these
18. What kind of Treasury Bills (T-Bills) is/ are issued by State Government?
a) No Treasury Bills issued by State Government
b) 182 - days
c) 91 - days
d) 364 - days
e) None of these
19. Pick the odd one out from the following about Bharat Bill Payment System (BBPS).
a) BBPS is a unified bill payment system across the country.
b) It will be setting up the standards in operations related to payments, clearance, and settlements.
c) G. Padmanabhan committee had provided a report on feasibility of Bharat Bill Payment System (BBPS).
d) Payment gateways, service providers, banks, and agents will be participants in this system.
e) None of these
20. Electronic fund transfers like RTGS and NEFT are operated and maintained by ......
a) National Payments Corporation of India (NPCI)
b) Bharat Bill Payment System (BBPS)
c) Reserve Bank of India (RBI)
d) Clearing Corporation of India Limited (CCIL)
e) None of these
21. Identify the Basel III norms from following that, recently RBI has extended the timeline for implementation for banks in India ........
a) Minimum regulatory capital requirement
b) Market discipline
c) Holding the minimum capital to risk weighted assets ratio to 10.25%
d) Leverage ratio to 3%
e) All the above
22. Identify the odd one out from the following benefits of RTGS.
a) Settlement is immediate
b) Suited for only lower value transactions
c) Lowers the settlement risk
d) Avoids credit risk while settlement
e) Settled at real time
23. Who all can hire a locker in a bank?
a) Individuals
b) Limited companies and societies
c) Specified associations
d) Two persons jointly
e) All the above
24. Expand IFSC ........
a) Indian Financial System Code
b) Indian Financial Services Code
c) International Financial Service Code
d) Interbank Fund Service Code
e) Indian Financial Security Code
25. Which among the following is known as pre paid negotiable instrument?
a) Cheque
b) Promissory note
c) Bankers cheque/ Pay order
d) Fixed deposit
e) None of these
ANSWERS:
1-b, 2-e, 3-d, 4-a, 5-c, 6-d, 7-a, 8-d, 9-b, 10-d
11-c, 12-a, 13-b, 14-d, 15-d, 16-b, 17-c, 18-a, 19-e, 20-c
21-e, 22-b, 23-e, 24-a, 25-c
a) Bangalore
b) Manipal
c) New Delhi
d) Mumbai
e) Kolkata
2. NABARD support lending to farmers, rural artisans and other non farmers in rural areas through ......
a) Co-operative Banks
b) Regional Rural Banks
c) Land Development Banks
d) Scheduled Commercial Banks
e) All the Above
3. Identify the macro economic policy/ policies of India .......
a) Monetary policy
b) Fiscal policy
c) Regulatory policy
d) Only a and b
e) None of these
4. RBI uses bank rate in order to control .......
a) Money supply, volume of bank credit and cost of bank credit.
b) Liquidity
c) Cash holdings of banks
d) Financial position of banks
e) None of these
5. What are the steps taken by RBI, in order to meet demand and time liabilities of banks in time?
a) Banks are asked to keep mandatory regulatory cash reserve with RBI
b) Banks are asked to maintain CRR
c) Both a and b as they are same
d) Banks are asked to keep enough cash in cash counters
e) None of these
6. India's own payment gate way 'RuPay' works in which of the following channel/s?
a) Automated Teller Machines
b) Point of Sales
c) Online Sales
d) All of the Above
e) None of these
7. Monetary policy is used by RBI for controlling.......
a) Inflation or deflation
b) Exports or imports
c) Indian rupee or foreign currency
d) State or Central Government
e) None of these
8. Identify the difference between commercial paper and certificate of deposit ........
a) Certificate of deposit is issued at discount while commercial paper at face value
b) Certificate of deposit is a financial instrument while commercial paper is a financial statement
c) Certificate of deposit is issued by banks while commercial paper is issued by firms or public limited companies
d) All the above
e) None of these
9. When does money market is called as 'Tight'?
a) When the call money rate is low
b) When the call money rate is high
c) When money availability in the market is very high
d) When participants in the money market are ready to lend
e) None of these
10. If a bank needs to attract Provident Fund Deposits, what are the criteria that banks must possess?
a) Profitability in preceding 3 years
b) Minimum of Rs.200 crores as net worth
c) Capital adequacy of 9%
d) All the above
e) None of these
11. If the stock markets are declining then it is called as .......
a) Bull run
b) Down run
c) Bear run
d) Stage
e) None of these
12. A promissory note that is not secured by any collateral or not secured by a mortgage or lien marked on any property is ....... instrument.
a) Debenture
b) Bill of exchange
c) Commercial bill
d) Currency bill
e) None of these
13. What does RBI do if a Re.1 note is issued by Government of India?
a) RBI abject the issuance
b) RBI put into circulation
c) RBI converts Re.1 in to higher denomination of Rs.10 and more.
d) RBI asks banks to not to support for circulation
e) None of these
14. RBI issue currency rupee notes on bases of ........
a) By holding minimum value of gold coins and bullion
b) By holding minimum foreign securities as a part of the total approved assets
c) By holding minimum amount of commodities which are trading in commodity exchanges
d) Only a and b
e) All the above
15. Which of the following entities are applicable for the new listing obligations and disclosure requirements of SEBI regulations, 2014?
a) Listing of debentures
b) Listing of bonds
c) All listed companies
d) All the above
e) None of these
16. National Payments Corporation of India (NPCI) is being used by banks for ......
a) Remittance
b) Clearing and settlement
c) Payments and settlements
d) Advisory service
e) None of these
17. NOSTRO account means .......
a) An account opened by foreign citizens other than NRIs in India with Indian banks in INR for their expenses in India.
b) An account opened by foreign citizens other than NRIs in India with foreign banks in foreign currency to convert Indian rupee to that currency and remit back to their own country.
c) An account opened by an Indian bank in the foreign countries in their banks and in that country currency for settlement in that country's currency.
d) An account opened by a foreign bank in India with their corresponding banks in INR for settlements in INR.
e) None of these
18. What kind of Treasury Bills (T-Bills) is/ are issued by State Government?
a) No Treasury Bills issued by State Government
b) 182 - days
c) 91 - days
d) 364 - days
e) None of these
19. Pick the odd one out from the following about Bharat Bill Payment System (BBPS).
a) BBPS is a unified bill payment system across the country.
b) It will be setting up the standards in operations related to payments, clearance, and settlements.
c) G. Padmanabhan committee had provided a report on feasibility of Bharat Bill Payment System (BBPS).
d) Payment gateways, service providers, banks, and agents will be participants in this system.
e) None of these
20. Electronic fund transfers like RTGS and NEFT are operated and maintained by ......
a) National Payments Corporation of India (NPCI)
b) Bharat Bill Payment System (BBPS)
c) Reserve Bank of India (RBI)
d) Clearing Corporation of India Limited (CCIL)
e) None of these
21. Identify the Basel III norms from following that, recently RBI has extended the timeline for implementation for banks in India ........
a) Minimum regulatory capital requirement
b) Market discipline
c) Holding the minimum capital to risk weighted assets ratio to 10.25%
d) Leverage ratio to 3%
e) All the above
22. Identify the odd one out from the following benefits of RTGS.
a) Settlement is immediate
b) Suited for only lower value transactions
c) Lowers the settlement risk
d) Avoids credit risk while settlement
e) Settled at real time
23. Who all can hire a locker in a bank?
a) Individuals
b) Limited companies and societies
c) Specified associations
d) Two persons jointly
e) All the above
24. Expand IFSC ........
a) Indian Financial System Code
b) Indian Financial Services Code
c) International Financial Service Code
d) Interbank Fund Service Code
e) Indian Financial Security Code
25. Which among the following is known as pre paid negotiable instrument?
a) Cheque
b) Promissory note
c) Bankers cheque/ Pay order
d) Fixed deposit
e) None of these
ANSWERS:
1-b, 2-e, 3-d, 4-a, 5-c, 6-d, 7-a, 8-d, 9-b, 10-d
11-c, 12-a, 13-b, 14-d, 15-d, 16-b, 17-c, 18-a, 19-e, 20-c
21-e, 22-b, 23-e, 24-a, 25-c
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