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LAST MINUTE PREPARATION --Banking related GA points given


FRIENDS:  I received this input through another candidate.  I requested for permission of Mr. Vaibhav gupta to post this in our blog site.   He was kind enough to agree for the same. Thank you Vaibhav Gupta.  Good job. s.sambasivan, detroit. usa.(

SOURCE:  Prepared BY:  Vaibhav Gupta                                                                           

• Gilt edged securities refers to :
Ans. Govt. Securities.
• Increasing CRR by RBI leads to :
Ans. Squeeze in liquidity.
• Market Captialisation meansAns. Number of shares issued by a company multiplied by current market price of the share.
• Unqualified Report means :
Ans. an Audit Report contains no "Clauses".

• "Dividend Stripping" means__
Ans. Purchase or Sale of shares by the individuals or company prior or subsequent to
declaration of dividends.
• Higher Foreign Exchange Reserves are associated with the risk of :
Ans. Fluctuation in exchange rates.
• Collateralised Borrowing and Lending Obligation (CBLO) is a:
Ans. Money Market Instrument. .
• Overhead expenses for Banking Sector compared to Manufacturing Sector is :
Ans. Low.
• Islamic Banking means :
Ans. banking according to the Principles of Shariat

• G8 Countries consist mainly of:
Ans. Developed nations.
• Which State took the initiatives for consolidation of Co-operative banks :
Ans. Maharashtra
• Expand VAT :
Ans. Value Added Tax
• Minimum period for which a Commercial Paper can be issued is :
Ans. 7 days
• Monetary Museum of India established by RBI is located at :
Ans. Mumbai
• Yes Bank has been promoted by :
Ans. Mr. Rana Kapoor

• The country which has banned sale of Tobacco is :
Ans. Bhutan
• Expand SACP :
Ans. Special Agriculture Credit Plan .
• Dr. Montek Singh Ahluwalia at present is :
Ans. Deputy Chairman of the Planning Commission
• Expand OSU :
Ans. Off Shore Unit
• Maximum Forex permissible to a Resident Indian going abroad as tourist :
Ans. US $ 10,000 per financial year.
• Banks are required to preserve records as per provisions of :
Ans. Sec 45Y, Banking Regulations Act

• KYC norms were implemented to :
Ans. Prevent Money Laundering.
• A unique example of Co-op bank converting to a private commercial bank :
Ans. Development Credit Bank
• Licence for starting a new Commercial bank is given by :
Ans. RBI
• RBI rediscounts bills of the banks at :
Ans. Bank Rate
• Which charge does not require registration in case of limited companies :
Ans. Pledge
• Irrevocable LC denotes that :
Ans. Terms and condition of LC cannot be changed without
consent of beneficiary.
• Worla Elders days IS on :
Ans. 1st October.
• Chairperson of Committee on Corporate Governance in Banks :
Ans. A.S. Ganguly
• Committee associated with funding of Tea industry :
Ans. Madhukar Committee.
Which committee is associated with Rural Credit System :
Ans. V S Vyas Committee
• Montreal Protocol relates to :
Ans. Protection of Ozone Layer
• Import Licence are issued for :
Ans. CIF value
• The cases referred to Lok Adalats formed by DRT is for :
Ans. above Rs. 20 lac.

• NK Singh Committee is associated :
Ans. Foreign direct investment (FDI)
• NIXI :
Ans. Telecom Regulatory Authority of India (TRAI) has recommended the
establishment of Internet exchanges :
Ans. Nationallntemet Exchange of India
• According Multi Commodity Exchange, _ is the largest Potential Market in the Futures
Trading of Carbon Credits in India :
Ans. Gujarat
• __ has become the First Public Sector Bank to raise Equity Capital through Qualified
Institutional Placement (QIP) :
Ans. Bank of India
• According to the Global Information Technology Report 2007-08, __ is the Most Networked
Economy in the World :
Ans. Denmark

• Supreme Court upheld the Law enacted by the Union Government providing _ quota for other backward classes in Central educational institution such as IIT/ IIM from Academic year 2008-09 :
Ans. 27%.
• Postal Index Number (PIN) will be changed from :
Ans. 6 to 8 digits, to ensure speedier delivery of post.
• ____ is ranked as the World's Most Powerful Brand for the second straight year :
Ans. Google
• The US has placed India and 8 other countries on its 'Priority Watch List' for this year for
falling to protect __ :
Ans. The Copyrights, Patents and Trade Marks of American Producers from Piracy .
• In a bid to enhance the insurance cover for exporters, the Govt. has decided to pump in Rs.100 Crore in _ by way of increasing its Equity :
Ans. ECGC.
• Per Capita Income of Indian is estimated at _ at current prices for 2007-08 as against Rs16,668 In 2000-01 :
Ans. Rs. 33,299.
• _ has the Largest Petroleum Reserves (almost 1I4th of the World's proven total petroleumreserves) in the World :
Ans. Saudi Arabia.
• China is getting the better of India in Carbon Credits Trading. While the biggest projects in
China produces an estimated 11 million Certified Emission Reduction a year, Biggest Prolect in
India produces only _ :
Ans. 4 million a year.
• Loss making banks can make donations totaling Rs _ lakhs only in a financial year :
Ans. Rs.5lac
• Is Wheat a commercial crop :
Ans. No
• Largest trading partner country of India :
Ans. USA
• Maximum cotton yielding country :
Ans. India
• Maximum coffee yield :
Ans. Brazil
• Raksha Kawach :
Ans. Railway Security
• Dronacharya award relates to :
Ans. Award to Sports Coach
• Which among the currencies is the costliest in term of Indian Rupee :
Ans. Pound Sterling
• The revised definition of sick SSI unit has been given by :
Ans. Kohli Committee
• Which unit of valuation is known as 'Paper Gold' :
Ans. SDR.
• Emission standard given by :
Ans. Mashelkar Panel.
• Currency of Greece :
Ans. Euro
• Dialysis is related to :
Ans. Kidney patients
• Cholesterol is related to :
Ans. Heart problems.
• 10th Dec. is observed as :
Ans. Human Rights Day.
• Which RBI Committee is studying Lenders liability :
Ans. Dr. N. L. Mitra.
• Which of the following is the computer language :
• Which gas is emitted by motor vehicle :
Ans. Carbon mono oxide.
• Name of Special animal protection group :
Ans. PETA (People for Ethical Treatment of Animals).
• Handloom' is considered as second largest economic activity after :
Ans. Agriculture in India.
• Documents under LC should be dealt with by the negotiating I issuing bank within a time
period of not exceeding _ banking days excluding the date of receipt of documents :
Ans. 5 banking days
• If the due date of CDs falls on a holiday it should be paid on :
Ans. preceding working day.
• ____ refers to purchase of book debts I receivables without recourse to the sellers :
Ans. Factoring
• Maximum housing loans which would be treated as priority sector advance is :
Ans. Rs. 20 lacs.
• Green back currency refers to :
Ans. US$.
• Public holidays are excluded for determining time for presentation or acceptance for
payment under :
Ans. Section 105 of Negotiable Instruments Act 1881.
• Sec. 45Z of Banking Regulation Act 1949 deals with :
Ans. Return of paid instruments to account holders.
• Can Bank exercise right of Set-off in respect of contingent liabilities :
Ans. No
• US $ rate is increased from Rs. 401- to Rs. 43/- It will benefit the :
Ans. Exporters and will lead to increase in exports.
• Bearer demand draft cannot be issued as per under Section __ RBI Act :
Ans. Sec 31 of RBI Act
• If a Sole Trustee dies, the Trust will be managed by :
Ans. Court appointed Trustee
• Section 22 of the NI Act provides for a grace period 3 days to be added for arriving at the due
date for a :
Ans. Usance bill.
• Equitable Mortgage was created by deposit of title deeds on 1.6.2008. Subsequently
Registered Mortgage was executed on 2.6.2008 on same property. Which Mortgage will have
priority :
Ans. Equitable Mortgage
• Mulberry loan is related to :
Ans. Sericulture.
• Pre-paid expenses in the shape of insurance premium are classified in the Balance Sheet as :
Ans. Current asset
• The Borrowing of the Board of Directors of the Public Ltd Company should not exceed :
Ans. Paid•up capital and free reserves.
• Working Capital assessment for SSI units sanctioned Working Capital limit upto Rs 5 crore is
as per :
Ans. Nayak committee.
• State-sponsored Corporation granted loan for on-lending to Weaker Section is covered by the
bank under :
Ans. Indirect advance to agriculture.
• Hypothecation has been defined in :
Ans. Section 2 (n) of SARFAESI Act.
• In a cheque drawn by the drawer, the name of payee is written in English and the other parts,
in vernacular language :
Ans. The cheque will be paid if otherwise in order.
• Guarantor stepping into the shoes of creditor on discharging the liability of the principal
borrower :
Ans. Right of Subrogation.
• In Sec 148 of Indian Contract Act, Bailment refers to :
Ans. Delivery of goods from one person to another person for some purpose and when the
purpose will be over, goods will be returned or disposed-off as per the direction of the
deliverer, i.e. bailor.
• Know Your Customer (KYC) guidelines :
Ans. Prevent banks from being used unwittingly used by criminal elements for transfer of illegal
funds/ money laundering activities.
• Preferential payment to depositors in respect of winding up of a Banking Company is
provided :
Ans. under section 43 A of Banking Regulation Act 1949.
• If Operating Cycle is longer :
Ans. This implies that higher amount of working capital will be required.
• Clayton's Rule applies to :
Ans. appropriation of payments.
• Vostro account means :
Ans. Foreign Bank's A/c with us.
• RFC ale can be opened by :
Ans. home returned NRls.
• Guarantees covering series of transactions :
Ans. Continuing Guarantees.
• Buyer takes possesSion of goods and enjoys as Sole Owner of goods although price of goods
not fully paid :
Ans. Hire Purchase.
• As per Sec. 26 NI Act, Minor may draw, endorse, deliver, Negotiable Instrument so as to bind
all parties except himself :
Ans. True.
• Mr. A, a current A/c holder executed a power of attorney in favour of Mr. B to operate
Current Deposit A/c. Mr. A's death notice is served on the Banker. A cheque duly signed by Mr.
B. is received for payment the Bank has to :
Ans. Dishonour the Cheque.
• Contract of Insurance is an :
Ans. indemnity contract.
• Bailment is in :
Ans. Indian Contract Act Sec. 148.
• Cheque may be crossed by drawer, holder, banker :
Ans. All (Sec. 125)
• Mortgage by Deposit of title of deeds is :
Ans. Equitable Mortgage• (Transfer of Property Act, Sec. 58F).
• Mortgage is defined :
Ans. Transfer of Property Act Sec. 58(F)
• Minor can be appointed as an Agent :
Ans. Principal is responsibIe (Sec. 184 of Contract Act).
• A/c Payee crossing is not recognised by an act :
Ans. Outcome of custom and usuage.
• Cheque validfiy period has now statutory sanction as per :
Ans. Sec; 138 of NI Act
• Writing name of bank on face of Cheque with or without two parallel lines
Ans. Special Crossing. .
• A/C payee crossing is direction to :
Ans. Collecting banker.
• Garnishee Order applies to :
Ans. Credit Balance in CC
• Unclaimed Deposit• 10 years and above :
Ans. RBI (Sec. 26 of Banking Regulation Act)
• Material alteration :
Ans. Requires drawers authentication.
• Possession & ownership with borrower :
Ans. Hypothecation
• Safe Custody is covered under which act :
Ans. Indian Contract Act
• Safe Deposit Locker relationship with banker is :
Ans. Lessor• Lessee.
• Debt Equity Ratio :
Ans. Type of Solvency Ratio
• Break even paint means :
Ans. No profit no loss.
• Target of agriculture finance :
Ans. 18% of ANBC or Credit balance of off Balance sheet items, whichever is higher.
• Current ratio = Current Assets + Current Liabilities.
• Under RTI Act, the person seeking information should have qualifying eligibility of :
Ans. Indian Citizenship .
• Minimum and maximum maturity period of a Commercial Paper :
Ans. 7 days and 1 year.
• New name of the Ministry of NRI Affairs :
Ans. Ministry of Overseas Indian Affairs.
• Most popular bench mark rate for Indian money market for one day call rates is :
• What is the Cash Reserve Ratio that the Overseas Banking units have to maintain while
opening the branch in SEZs :
Ans. No requirement
• The country that revalued its currency Yuan against the US dollar is :
Ans. China
• What is the maximum amount for which the CGTMSE guarantee cover• is available :
Ans. Fund & Non Fund based Rs. 1 cr.
• Who has formulated the 'Swaran Jayanti Gram Swarozgar Yojana :
Ans. Ministry of Rural Development
• Which bank has started 'Abhay' credit counselling centres in association with NGO :
Ans. Bank of India.
• Concept of Priority Sector came in the year __ :
Ans. 1972
• What is the minimum and maximum number of persons that can form JLG for tenant farmers
Ans. 4 to 10 .
• What is the name of in-built device in a computer where data is stored :
Ans. Hard Disc
• What is the target of correspondence in Hindi from Region C to Region C :
Ans. 55% of total letter sent
• What is Corporate Governance :
Ans. Management of an organisation to enhance value for all stakeholders .
• Commission of Govt. business other than Pension :
Ans. 9 paisa per Rs. 100 turnover.
• Expand HTML :
Ans. HyperText Marttup Language
• Number of alphabets in a PAN Card :
Ans. Total 10, out of which 6 alphabets and 4 Numerals.
• Oldest and largest foreign bank in India :
Ans. Standard Chartered Bank
• What is Internet :
Ans. Network for Networks
• Information Technology Act came in to effect from :
Ans. 1.6.2000
• 'Buy now Pay later' is related to :
Ans. Credit Card
• Maximum dividend payout ratio for a bank is :
Ans. 40%
• What enables computers to interact with other network through telephone lines :
Ans. Modem
• Extent of Investment fluctuation reserve for banks Minimum 5% of securities classified as
held for :
Ans. Trading and Available for Sale.
• Smallest part of computer memory is :
Ans. Bit .
• A branch is considered as rural branch if it is located as a place with population below :
Ans. 10,000. (RBI definition), however for PMEGP it is 20000
• Converting physical shares to electronic from is called :
Ans. Dematerialization
• Official Language Committee Meeting :
Ans. Once in a quarter
• Minimum age of minor for self operated account :
Ans. 10 years
• Vyas committee recommendations relates to :
Ans. Agriculture credit
• Committee which recommended about Universal Banking :
Ans. R.H. Khan
• Nathu La Pass opened up for trade between China & India is in which State -,- :
Ans. Sikklm
• The Uniform Custom & Practices for Documentary Credits (UCP 600) has _ as the total
number of Articles :
Ans. 39
• Agency commission rat~ for governments business receipts is at the rate of_ per transaction
Ans. Rs. 45
• Which sector has become the world's biggest source of employment :
Ans. Services
• 'Which States has become the first State in India to launch evening Courts :
Ans. Gujarat
• The country which is known as 'Land of Co-operative' is :
Ans. Denmark
• The time period of settlement in case of RTGS is : Ans. "Two Hour
• Which state has got the maximum agricultural credit from the nationalized banks :
Ans. Andhra Pradesh
• As per the latest WTO report, the biggest importer country in the world during 2005 is :
Ans. USA
• Foreign Banks in India and Indian banks having presence outside India are to comply with
Basel II norms w.e.f. :
Ans. 31st March, 2008
• In the total food grain output of India, what is the share of Kharif Crops :
Ans. 50%
• The Grameen Bank Model of micro-finance institution was developed originally by :
Ans. Bangladesh
• Interest on Cash Reserve Ratio eligible balance is paid by RBI on __ basis :
Ans. No interest is paid
• Banks are required to maintain minimum of __ of theirCRR requirement on a daily basis :
Ans. 70%
• Stamp duty payable on a Promissory Note is governed by :
Ans. Indian Stamps Act
• Banks can raise up to __ of the total Tier-I capital in the form of perpetual dell :
Ans. 15%
• The rate of commission paid by government for pension payment is :
Ans. . Rs. 60 per transaction
• 'Customer' has been defined in :
Ans. KYC Guidelines
• What is the cut-off point for reforming fraud cases to CBI :
Ans. Rs. 1 crore
• RTGS will minimize __ risk :
Ans. Settlement risk
• What are the Indian Depository Receipts :
Ans. Financial Instruments that allow foreign companies to mobilize funds from Indian markets
• Which act gives legal guarantee of 100 days employment in rural areas to 1 person in every
household :
Ans. National Rural Employment Guarantee Act
• Service tax has to be remitted to the Govt. A/c by :
Ans. 5th of the succeeding month
• The risk of loss resulting from inadequate or failed intemal processes, people and systems or
from external events is :
Ans. Operational risk
• Which committee had recommended formation of Banking Standards and Codes Board to
prescribe guidelines in the banking sector for improving customer service :
Ans. S.S. Tarapore Committee
• Which state stands first in promoting SHG movement :
Ans. Andhra Pradesh
• ICRA, the rating company has become an associate of :
Ans. Moody's Investor Service
• Under what provisions Lok Adalats are set up :
Ans. Legal Services Authority Act, 1987
• What is MCA-21 :
Ans. It is the e-governance project of Ministry of Corporate affairs
• The new name of UTI Bank is :
Ans. Axis Bank
• BPO & KPO stand for :
Ans. Business Process Outsourcing & Knowledge Process Outsourcing
• International Bank for Devl. & Reconstruction is also known as :
Ans. World Bank
• WWW refers to :
Ans. World Wide Web
• The book 'A View from the Outside- Why good Economics works for every one' is written by
Ans. P.Chidambaram
• Ministry of Labour has banned children less than 14 yrs from working as domestic help :
Ans. With effect from 10th October 2006.
• . ICRA,CRISIL,CARE,FITCH India are names of :
Ans. RBI approved rating agencies In India
• A Common Goods & Services tax is expected to be implemented from :
Ans. April 2010
• 'Pure Banking, Nothing Else' is the signing off statement of _ :
Ans. State Bank of India
• Finnacle, the popular Banking software is a product of :
• 'Metropolitan' group includes all banked centres with population of and above :
Ans. 10,00,000
• RBI has allowed NBFCs registered with RBI to issue co-branded credit cards with banks,
without risk sharing, with prior RBI approval, for an initial period of :
Ans. Two Years
• Under population group of banked centres, 'Semi urban' group includes all banked centres
with population of 10,000 and above but less than :
Ans. 1,00,000
• 'Urban' group is that which has a population above 1,00,000 but below :
Ans. 10,00,000
• Which sector has become the world's biggest source of employment :
Ans. Services
• Which is the largest country in the world in terms of land area :
Ans. Russia
• Which State has become the first State in India to launch evening courts :
Ans. Gujarat
• The country which is known as 'Land of Co-operative' is :
Ans. Denmark
• Right to Education to all children between the age of 6to 14 years is :
Ans. A fundamental right
• The time period of settlement in case of RTGS is :
Ans. Two Hour
• Which state has got the maximum agricultural credit from the nationalized banks :
Ans. Andhra Pradesh
• Which state is at the top in agricultural production in India :
Ans. Punjab
• In the total food grain output of India, what is the share of Kharif Crops :
Ans. 50%
• Who is the chairperson of the National Commission on Farmers Dr. M.S.Swaminathan
• What is India's share in world's total exports of milk dairy products :
Ans. 0.5%
• A bank's aggregate Capital market exposure shall not exceed __ % of the net worth of the
bank on a solo and consolidated basis :
Ans. 40%
• Service tax recovered by the Bank in a month has to be remitted to the Govt. A/c by :
Ans. 5th of the succeeding month
• Two currencies which have been include by RBI in the basket of currencies to which rupee is
linked :
Ans. Yuan & Hong Kong dollar
• What is the maximum limit permitted for investment by FDls in the equity capital of ARCs :
Ans. 49%
• ICRA, the rating company has become an associate of :
Ans. Moody's Investor Service
• No passport need be presented to money changers for encashment of dollars up to :
Ans. USD500
• Who is the industry leader in mortgage loan :
• What is the ceiling for issue of Innovative perpetual debt instrument by banks :
Ans. It should not exceed 15% of total Tier•1 capital of the bank
• Who is the Chairman of the Committee to recommend the frame work for fuller Capital
Account Convertibility :
Ans. S.S. Tarapore, former Deputy Governor,
• RBI Interest subsidy on farm credit has to be claimed by banks :
Ans. on quarterly basis
• Risk weight for investment in RIDF by banks to meet shortfall in agricultural sector is :
Ans. 100% .
• Which are the three pillars under Basel II norms :
Ans. (a) Regulatory requirement of capital, b) Supervisory review, c) Market discipline
• Banks have kept Investment Fluctuation Reserves to manage :
Ans. Interest rate risk
• Indian bank that has been named in the top 500 list of Fortune Global 500 companies :
Ans. State Bank of India
• Opening of branches by Banks is covered under _ of the Banking Regulation Act,1949 :
Ans. Section 23
• Banks have to file with Income Tax Department returns on a __ basis in respect of Interest
paid to resident depositors not exceeding Rs. 10,000:
Ans. Quarterly
• RBI's permission to open a bank branch is valid for _ from the date of the consolidated
authorization letter issued by it :
Ans. one year
• Which of the following is related to 'Yellow Revolution' :
Ans. Oilseeds Production
• Annual growth rate of national income was recorded lowest during :
Ans. Third Plan
• According to the Sarva Shiksha Abhiyan, India's every child would be able to go to school by :
Ans. 2015
• Banks prefer going. to Lok Adalat because :
Ans. No court fees,' no appeal and compromise decree.
• NICL is abbreviation of :
Ans. National Insurance Company Ltd.
• Who decides the quantum of agricultural finance :
Ans. District Technical Committee.
• The term Insider Trading refers to :
Ans. Sale and Purchase of shares based on classified information available to those connected
with company.
• What is meant by Pari-Passu charge :
Ans. Pro-rata in the ratio of outstanding within the consortium approved limits.
• Which financial institutions converted into a Bank on 01.10.04 :
Ans. lDBI Ltd.
• Fire wall is used for :
Ans. Hardware/software to protect the IT system/website from unauthorized access.
• The foreign bank which has its own currency chest in India :
Ans. Standard Chartered
• What is Internet :
Ans. Network of Networks
• Expand INFINET :
Ans. Indian financial Network
• Deferred payment guarantee is a :
Ans. financial guarantee
• Net Block means :
Ans. Fixed Assets minus depreciation
• The declared objective of the 11 th Plan is :
Ans. Faster and More InclusiveGrowth
• Committee on Financial Inclusion for RRBs __ :
Ans. Dr. C Rangarajan.
• SARFAESI Act has been extended to loans advanced by :
Ans. RRBs.
• RRBs to accept :
Ans. NRE / FCNR deposits.
• National Housing Bank (NHB) to launch _ for senior citizens :
Ans. Reverse mortgage
• ___ , to be the sole identification no. for all participants in the securities market with an
alpha-numeric prefix or suffix to distinguish a particular kind of account :
Ans. PAN.
• Limit of per investor per year with respect to Capital Gains bonds issued by NHAI and REC
under section 54EC to continue :
Ans. Rs.50 lakh
• Risk weight on loans up to Rs.1 lakh against gold and silver ornaments for all categories of
banks reduced to :
Ans. 50%
• Risk weight on residential housing loans to individuals for loans up to Rs.30 lakh has been
reduced to % :
Ans. 50%
• The requirement of 'no due' certificate to be dispensed with for small loans up •to Rs. __ to
Small and Marginal Farmers, share-croppers and the like and instead, obtain self-declaration
from the borrower :
Ans. 1,00,000.
• RRBs can now take up Corporate agency business for distribution of insurance products,
including health and animal insurance on basis :
Ans. Without risk participation.
• Under SARFAESI. secured creditor, before taking possession of the charged assets, should
give notice of _ days to the borrower or his authorized agent :
Ans. 60
• For getting finance under SJSRY scheme, the max. project cost for Individuals :
Ans. 50000
• A company is inviting application for fixed deposits from general public. The FDRs so made by
it will be classified under :
Ans. Liabilities
• A bill becoming due for payment within __ shall be treated under current liability :
Ans. 12 months.
• Exposure norms for different industries/indivlduals/ groups fixed by the Banks/RBI are part of
Ans. Risk Management
• . Pre-operative expenses are included in :
Ans. Intangible assets
• Pre-paid expenses-are classified as :
Ans. Current assets
• Assets = Liabilities are as per :
Ans. Dual aspect concept
• Normally, Foreign Traveler cheque 'buying rate is better than Foreign currency rates because
of :
Ans. Holding cost
• A bill of USD one lac under Letter of Credit is due for payment after one month. There is
appreciation is rupee. The importer will :
Ans. Gain
• Dividend distribution tax is being paid by :
Ans. Company
• CBS refers to :
Ans. Centralized Banking Solution
• RBI has now dispensed with restrictive provisions of service area approach except for :
Ans. Loans under Govt Sponsored Programmes
• In deceased deposit accounts, where nomination has been exercised, banks to inform
nominee within. _ months in case of deposit accounts 'and Within months in case of locker
accounts :
Ans. 6 : 3
• Debtors velocity ratio of a company is very low, it does indicates :
Ans. Debtors collection management of the company is good
• At what rate, RBI provides advance to Banks against the Govt securities :
Ans. Repo Rate
• Best explain the term "CBLO' :
Ans. It is type of money market instrument, which is used to borrow and lend funds against
• Bill for collection appears in the balance sheet on :
Ans. Liability side
• The purpose of Star Series Numbered Notes is the :
Ans. To be issued to general public
• Increases in CRR causes :
Ans. Decreases the lendable resources of the banks
• A borrower has been sanctioned working Capital limit of Rs. 3 lacs at margin of 25%. The
amount of stock required to avail the sanctioned limit fully :
Ans. 4.00 lacs
• The difference between Term loan and Deferred payment guarantee is the :
Ans. Outlay of funds
• Main advantage of Cheque Truncation is the :
Ans. It decreases the cost of handling of large paper volume of small vote cheques
• The basic Principal of WC management is :
Ans. Profitability goes with liquidity
• A company sells off part of its assets and make a separate company i.e., unlock its value.
After selling off its assets it continues business with the remaining assets. This is called :
Ans. Spin off
• Corporate Governance comprises of :
Ans. Board of directors, Company officials & shareholders
• The Ratio is most affected by decrease in current liabilities :
Ans. Current Ratio
• The %age of risk weight on cash balances with RBI is :
Ans. 0%.
• The %age of risk weight on Central Govt. Guaranteed advances is the :
Ans. 0%
• As per RBI Act, the floor limit is __ and ceiling limit of CRR is____ :
Ans. Nil and 20%.
• The minimum Floor limit and maximum ceiling limit for SLR is :
Ans. Nil and 40%
• CRR is tnaintained as a %age of __ and SLR maintained as a %age. of __ :
Ans. NDTL : DTL .
• Up to how much period, pre-shipment credit card extended without the prior approval of
Ans. 360 days
• In Red Clause Letter of credit importer has given which type of banking facility for the benefit
of the exporter :
Ans. Finance for purchase of raw material
• In respect of letter of credit business, the term "deferred credit' is used for :
Ans. a type of supplier's credit .
• complainant is not satisfied with the reply given, within a period of_ from the date of cause
of action arise :
Ans. One year
• TDS will be deducted if amount of rent exceeds Rs. __ p.a. to single payee :
Ans. 1.20 lacs
• Tax deducted for deposit accounts should be deposited within :
Ans. 7 days of the following month.
• A cheque has been issued by Director of the Company is received after the death of the
director. Whether cheque will be paid :
Ans. Yes, since cheque has been issued in the representative capacity
• Note printing by RBI results in :
Ans. Inflation generally
• USD is depreciating as compared to world currencies because of :
Ans. Current account deficit
• Which bank has launched EMI Card :
Ans. ICICI Bank.
• Maturity proceeds of FCNR (B) deposits can be remitted :
Ans. To the depositors and to third parties outside India at the request of the depositors
• Which is a derivative instrument in the financial market :
Ans. Credit default swap
• Multicity cheque is payable at all ___ branches :
Ans. Core banking
• In the case of a white label credit card the brand of the issuer is :
Ans. Not mentioned
• Which one of the following is true in respect of issue of duplicate CDs :
Ans. It can be issued only in physical form
• Process of inviting subscriptions to a public issue is through a tendering process which is
known as :
Ans. Book building
• Bank's direct investment in shares, convertible bonds, debentures, units of equity oriented
mutual funds and all exposures to venture capital should not exceed___ % of its net worth :
Ans. 20
• __ ATM eliminates the need for PIN entry and authenticated customer transactions by thumb
impressions :
Ans. Biometric
• Provisions made by a bank in excess of the regulatory provisions is known as__ provisions :
Ans. Floating
• Innovative perpetual debt instruments are issued only with __ options :
Ans. Call
• A company incorporated outside India can issue :
Ans. IDR
• Who has formed the Rural Credit Bureau :
• Which one of the following is not the strength of SHG :
Ans. Super profit orientation
• Which is the widely accepted in the Money Market Operations :
Ans. Treasury Bills
• Maximum limit under General Credit Card is Rs._ 100% of the oulstandings are treated as __
agricultural advance :
Ans. Rs. 25,000 ; Indirect
• Date of expiry is not mentioned in the LC. Documents are presented for negotiation. In this
case :
Ans. Cannot be negotiated as the LC is not valid.
• As per recent RBI guidelines Branch level Customer Committee should also include
___ as member :
Ans. A customer who should be senior citizen.
• Working group on procedure and processing of Agricultural loans is headed by_ :
Ans. C.P. Swarankar
• As per RBI directives, the complaints relating to cash not dispensed at ATMs although deposit
account is debited etc. should be disposed of within a period of ___ :
Ans. 3 days.
• Which state is at the top of a list of best e-governed 20 states :
Ans. Goa
• Surrender value in the context of Life insurance policy means :
Ans. Minimum value that is given by an insurance company in the case of foreclosure of the
• Star series notes means those notes which are placed in replacement of defective notes
issued in the denomination of :
Ans. Rs10, Rs 20, Rs 50
• When RBI sells the securities to banks and gets cash from banks under LAF, RBI pays interest
to banks at :
Ans. Reverse Repo Rate
• Decision given by the Ombudsman has to be implemented by the bank within :
Ans. 1 month from the date of receipt of acceptance from complainant
• In the context of collection of cheques, conversion means :
Ans. Crediting the amount of the cheque to the account of a person who is not entitled to it.
• As per Section 19(2) of the Banking Regulation Act, a banking company shall not hold shares
in a company, either as pledge or as owner of an amount exceeding _ of the paid up capital of
the company or _of its own paid up capital and reserves whichever is less.
Ans. 30%, 30%
•______ is part of the larger emission trading which is a method worked out to control
pollution by using economic incentives :
Ans. Carbon Trading
• According to Transparency International (TI) corruption index, India has ranked :
Ans. 72
• has agreed to declare all its nuclear programmes and disable its main atomic reactor by the
end of the year under US supervision :
Ans. N. Korea
• For bank the main advantage of referring the matter to Lok Adalats is :
Ans. It is based on mutual consent hence decision and its execution is fast.
• For which of the following Industries Cash budget system for assessment of MPBF has
recently been adopted by the bank :
Ans. Service, Software, Sugar, Tea.
• Probate is a document issue by Court of law and is the' nature of :
Ans. An official confirmation of the will of the deceased.
• Currency & Finance is a report being published by :
Ans. RBI
• Twin sisters of Bretton Woods :
Ans. World Bank and IMF.
• Which,type of Letter of Credits, pre-shipment credit is offered :
Ans. Red-clause letter of credit
• Explain the term 'Islamic Banking' :
Ans. Banking without the factor like" Interest on money deposited or lent"
• In Ombudsman Scheme, Customer Service Committee Report is to be submitted on __ basis
Ans. Quarterly
• The risk associated with higher foreign exchange reserves is :
Ans. Exchange rate movement risk
• What is the maximum discount that a company can offer to retail investors for their public
issues? :
Ans. 10%
• Which country has chosen the face of its motherhood as the first woman to be featured in its
banknotes? :
Ans. South Korea
• India ranks as _ in the list of largest carbon emitters :
Ans. Fourth
• Who is the head of internal working gap set up by RBI to examine the recommendations of
the Radhakrishna Export on Agricultural indebtedness? :
Ans. Mr V.S. Das,

LAST MINUTE PREPARATION --Banking related GA points given Reviewed by sambasivan srinivasan on 4:15:00 PM Rating: 5

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