Banking Awareness MCQ with Answers

Question. According to RBI guidelines the term „bulk deposit‟ is used for single rupee term deposit of ________
A. Rs. 1 crore and above
B. Rs, 25 lakh and above
C. Rs, 75 lakh and above
D. Rs, 50 lakh and above
E. Rs, 15 lakh and above

Answer : A. Rs. 1 crore and above
Explanation: Bulk Deposit means single Rupee term deposits of 1 Crore and above.

Question. An NBFC-MFI is defined as a non-deposit taking NBFC (other than a company licensed under Section 25 of the Indian Companies Act, 1956) with Minimum Net Owned Funds of ________
A. Rs.5 crore
B. Rs.4 crore
C. Rs.3 crore
D. Rs.2 crore
E. None of the Above

Answer : A. Rs.5 crore
Explanation: Non Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) licensed under Section 25 of the Indian Companies Act, 1956) with Minimum Net Owned Funds of Rs.5 crore.

Question. A collection of non-bank financial intermediaries that provide services similar to traditional commercial banks is known as _________
A. Off-shore Banking
B. Investment Banking System
C. Shadow Banking System
D. Conventional Banking
E. Merchant Banking System

Answer : C. Shadow Banking System
Explanation: A shadow banking system refers to the financial intermediaries involved in facilitating the creation of credit across the global financial system but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated institutions.

Question. The “Stand Up India” is aimed at promoting entrepreneurship among women and scheduled castes and tribes. The bank loans under the scheme shall be referenced to _______
A. SIDBI
B. NABARD
C. RBI
D. MUDRA
E. DRDA

Answer : A. SIDBI
Explanation: The ―Stand up India Scheme‖ is being launched now to promote entrepreneurship among Scheduled Caste/Schedule Tribe and Women for loans in the range of Rs. 10 Lakhs to Rs. 100 Lakhs. The bank loans under the scheme shall be referenced to SIDBI.

Question. What is the minimum maturity period for Rupee Denominated Bonds?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
E. None of the Above

Answer : B. 3 years
Explanation: The Rupee denominated bonds can only be issued in a country and can only be subscribed by a resident of a country with minimum maturity period of 3 years.

Question. The Minimum Net Owned Fund for NBFC-MFIs registered in the North Eastern Region of the country is _________
A. Rs.5 crore
B. Rs.4 crore
C. Rs.3 crore
D. Rs.2 crore
E. None of the Above

Answer : Rs.2 crore
Explanation: Minimum Net Owned Fund for NBFC-MFIs registered in the North Eastern Region of the country is Rs. 2 crore.

Question. Which are defined as total assets other than cash and bank balances and money market instruments?
A. Net Assets
B. Qualifying Assets
C. Commercial Papers
D. BothA and C
E. All of the Above

Answer : A. Net Assets
Explanation: ―Net assets‖ are defined as total assets other than cash and bank balances and money market instruments.

Question. Which of the following account can be repatriable?
A. NRE Account
B. NRO Account
C. FCNRB Account
D. Both A and C
E. All of the Above

Answer : D. Both A and C
Explanation: Non-Resident (External) Rupee Account Scheme[NRE Account] and Foreign Currency (Non-Resident) Account (Banks) Scheme [FCNR B Account]can be repatriable
while Non-Resident Ordinary Rupee Account Scheme[NRO Account]is not repatriable except for all current income.Balances in an NRO account of NRIs/ PIOs are remittable up to USD 1 (one) million per financial year (April-March) along with their other eligible assets.

Question. Which of the following does not have savings account?
A. NRE Account
B. NRO Account
C. FCNRB Account
D. Both A andC
E. All of the Above

Answer : C. FCNRB Account
Explanation: Non-Resident (External) Rupee Account Scheme[NRE Account]: Savings, Current,Recurring, Fixed Deposit
Foreign Currency (Non-Resident) Account (Banks) Scheme [FCNR B Account]: Term Deposit only
Non-Resident Ordinary Rupee Account Scheme [NRO Account]: Savings, Current, Recurring, Fixed Deposit.

Question. According to Reserve Bank of India Regulations, “Universal Banks” are permitted to pick up stake in Payment Banks up to _________
A. 35%
B. 25%
C. 20%
D. 40%
E. 30%

Answer : E. 30%
Explanation: RBI regulations allow universal banks to invest up 30 per cent in payments banks.

Question. In SNRR Account, SNRR stands for _________
A. Statutory Non Resident Rupee
B. Single Non Resident Rupee
C. Statutory Non Reflex Rupee
D. Single Non Resident Rupee
E. Special Non Resident Rupee

Answer : E. Special Non Resident Rupee
Explanation: Any person resident outside India, having a business interest in India, can open a Special
Non-Resident Rupee Account (SNRR account) with an authorised dealer for the purpose of putting through bonafide transactions in rupees.

Question. _________ is an account maintained in foreign currency with an Authorised Dealer Bank.
A. Exchange Earners‘Foreign Currency Account
B. Exchange Eligible Foreign Currency Account
C. Earners‘ Eligible Foreign Currency Account
D. Earners‘ Exchange Foreign Currency Account
E. Equity Exchange Foreign Currency Account

Answer : A. Exchange Earners‟Foreign Currency Account
Explanation: Exchange Earners‘ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Bank (Category – I Bank) in foreign exchange.

Question. What is the maximum amount that can be raised through issuance of Rupee denominated bonds under automatic route?
A. INR 50 billion
B. INR 60 billion
C. INR 55 billion
D. INR 65 billion
E. No limit

Answer : A. INR 50 billion
Explanation: The maximum amount that any eligible borrower can raise through issuance of these bonds under automatic route is INR 50 billion or its equivalent during a financial year.

Question. Who is/are eligible to open an EEFC Account?
A. Individuals
B. Companies
C. Residents of India
D. Both B and C
E. All of the Above

Answer : E. All of the Above
Explanation: All categories of foreign exchange earners, such as individuals, companies, etc., who are resident in India, may open EEFC accounts.

Question. The IMGC is the sole provider of mortgage guarantor for housing finance in India.
The alphabet “I” in the abbreviation IMGC stands for________
A. India
B. Institute
C. Internal
D. Informative
E. International

Answer : A. India
Explanation: Mortgage Guarantee (also known as mortgage insurance in some parts of the world) is a financial product which compensates lending institutions or housing finance companies for losses that may arise when a home owner defaults on a mortgage loan.
IMGC is the first company of its kind to introduce this kind of product in the Housing sector in India. The intention is to mitigate risk taken by lenders, banks and housing finance companies, over time making it easier for people to get access to home loans of higher values (or with lower down-payment amounts) earlier in life than would have been possible without IMGC‘s involvement.

Question. The national agency mandated to control, analyse and disseminate Suspicious Transaction Reports(STR), Cash Transaction Reports and counterfeit currency reports to various investigative agencies of the country after receiving it from banks and other financial intermediaries is ________
A. RBI
B. Financial Intelligence Unit(FIU)
C. Intelligence Bureau(IB)
D. Central Bureau of Investigation(CBI)
E. Central Intelligence Unit(CIU)

Answer : B. Financial Intelligence Unit(FIU)
Explanation: The FIU is the national agency mandated to collect, analyse and disseminate Suspicious Transaction Reports (STRs), Cash Transaction Reports and Counterfeit Currency Reports to various investigative agencies of the country after receiving it from banks and other financial intermediaries under a stipulated mechanism.

Question. Which of the following percentage of foreign exchange earnings can be credited to the EEFC account?
A. 80%
B. 90%
C. 75%
D. 95%
E. 100%

Answer : E. 100%
Explanation: under EEFC account, a facility provided to the foreign exchange earners, including exporters, to credit 100 per cent of their foreign exchange earnings to the account. so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs.

Question. An EEFC account can be held only in the form of ________
A. Savings Bank Account
B. Deposit Account
C. Current Account
D. Both B and C
E. None of the Above

Answer : C. Current Account
Explanation: An EEFC account can be held only in the form of a current account. No interest is payable on EEFC accounts.

Question. Which of the following can issue Rupee denominated bonds?
A. Real Estate Investment Trusts (REITs)
B. Infrastructure Investment Trusts (InvITs)
C. Limited Liability Partnerships
D. Both A and B
E. None of the Above

Answer : D. Both A and B
Explanation: Any corporate (entity registered as a company under the Companies Act, 1956/ 2013) or body corporate (entity specially created out of a specific act of the Parliament) is eligible to issue Rupee denominated bonds overseas. Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) coming under the regulatory jurisdiction of the Securities and Exchange Board of India (SEBI) are also eligible. Indian banks are, however, not permitted to issue such bonds. Other resident entities like Limited Liability Partnerships and Partnership firms, etc. are also not eligible to issue these bonds.

Question. Under Liberalised Remittance Scheme, PAN card need not be insisted upon for remittance made towards permissible current account transactions up to__________
A. USD 25,000
B. USD 20,000
C. USD 15,000
D. USD 10,000
E. None of the Above

Answer : A. USD 25,000
Explanation: PAN card need not be insisted upon for remittance made towards permissible current account transactions up to USD 25,000 per financial year.

Question. FATF, an Intergovernmental Organization is headquartered in __________
A. Newyork, USA
B. Geneva, Switzerland
C. Italy, Rome
D. Paris, France
E. None of the Above

Answer : D. Paris, France
Explanation: The Financial Action Task Force (on Money Laundering) (FATF), also known by its French name, Groupe d‘action financière (GAFI), is an intergovernmental organization founded in 1989 The FATF Secretariat is housed at the headquarters of the OECD in Paris.

Question. How many members are there in FATF?
A. 42
B. 43
C. 40
D. 37
E. 39

Answer : D. 37
Explanation: There are currently 37 members of the FATF; 35 jurisdictions and 2 regional organisations (the Gulf Cooperation Council and the European Commission). These 37 Members are at the core of global efforts to combat money laundering and terrorist financing.

Question. Which of the following is an investment advisory discipline?
A. Corporate Industrial Finance
B. Offshare Banking
C. Wholesale Banking
D. Wealth Management
E. Trade Finance

Answer : D. Wealth Management
Explanation: Wealth management as an investment-advisory discipline incorporates financial planning, investment portfolio management and a number of aggregated financial services. High-net-worth individuals (HNWIs), small-business owners and families who desire the assistance of a credentialed financial advisory specialist call upon wealth managers to coordinate retail banking, estate planning, legal resources, tax professionals and investment management.

Question. Which of the following is an observer of FATF?
A. Ireland
B. Israel
C. Saudi Arabia
D. Both B and C
E. All of the Above

Answer : D. Both B and C
Explanation: FATF Observer Countries:
Israel
Saudi Arabia

Question. _________ is a way of transferring personal remittances from abroad to beneficiaries in India
A. RDA
B. MTSS
C. Both A and B
D. All of the Above
E. None of the Above

Answer : B. MTSS
Explanation: Money Transfer Service Scheme (MTSS) is a way of transferring personal remittances from abroad to beneficiaries in India.
Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible. Under the scheme there is a tie-up between reputed money transfer companies abroad known as Overseas Principals and agents in India known as Indian Agents who would disburse funds to beneficiaries in India at ongoing exchange rates.

Question. The Overseas Principal should obtain necessary authorisation from the Reserve Bank of India under the provisions of which Act to commence/ operate a payment system?
A. Reserve Bank of India Act–1934
B. Banking Companies (Acquisition and Transfer of Undertakings) Act–1970
C. Banking Regulation (Companies) Rules, 1949
D. Payment and Settlement Systems Act (PSS Act), 2007
E. None of the Above

Answer : D. Payment and Settlement Systems Act (PSS Act), 2007
Explanation: The Overseas Principal should obtain necessary authorisation from the Department of Payment and Settlement Systems, Reserve Bank of India under the provisions of the Payment and Settlement Systems Act (PSS Act), 2007 to commence/ operate a payment system.

Question. What is the maximum limit on the amount of money that can be sent under MTSS?
A. USD 2,500
B. USD 1,500
C. USD 1,000
D. USD 2,200
E. None of the Above

Answer : A. USD 2,500
Explanation: A cap of USD 2,500 has been placed on individual remittances under the Money Transfer Service Scheme (MTSS)

Question. How many remittances can be received by a single individual beneficiary under the scheme during a year?
A. 40
B. 45
C. 40
D. 35
E. 30

Answer : E. 30
Explanation: Thirty remittances can be received by a single individual beneficiary under the scheme during a calendar year.

Question. What is the maximum limit on cash payment that is to be made to the beneficiary under MTSS in India?
A. Rs. 25,000
B. Rs. 15,000
C. Rs. 10,000
D. Rs. 40,000
E. Rs. 50,000

Answer : E. Rs. 50,000
Explanation: Amounts up to INR 50,000/- may be paid in cash to a beneficiary in India. These can also be loaded on to a pre-paid card issued by banks. Any amount exceeding this limit shall be paid by means of account payee cheque/ demand draft/ payment order, etc., or credited directly to the beneficiary‘s bank account. However, in exceptional circumstances, where the beneficiary is a foreign tourist, higher amounts may be disbursed in cash.

Question. The seed capital of Bharatiya Mahila Bank is ________
A. Rs.5000 crore
B. Rs.1000 crore
C. Rs.500 crore
D. Rs.100 crore
E. None of the above

Answer : B. Rs.1000 crore
Explanation: Bharatiya Mahila Bank (BMB) is an Indian financial services banking company based in New Delhi, India. India is the third country in the world to have a bank especially for women, after Pakistan and Tanzania.The Bank‘s initial capital consists of Rs 1,000 crores.

Question. Which of the following economic concepts is categorised on the basis of Current Account or Capital Account or both?
A. Balance of Payments
B. Value of the food grain stock of a country
C. Gross National Product
D. Gross National Income(GNI)
E. Total collection of Direct Taxes in a year

Answer : A. Balance of Payments
Explanation: A Balance of payments statements is a summary of a nation‘s total economic transactions undertaken on international account. It is usually composed of two sections :-
1. Current Account
2. Capital Account

Question. When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called __________
A. Revenue Deficit
B. Budgetary Deficit
C. Zero Budgeting
D. Trade Gap
E. Balance of Payment Problem

Answer : B. Budgetary Deficit
Explanation: Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit. Similarly, if the capital disbursements of the government exceed capital receipts, it leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.

Question. Lack of access to financial services is technically known as ______
A. Financial Instability
B. Financial Stability
C. Financial Inclusion
D. Financial Exclusion
E. Poverty

Answer : D. Financial Exclusion
Explanation: Financial exclusion can be defined as the unavailability of banking services to people with low or non income. It is believed to be one factor preventing poor people leave out poverty.

Question. What is the full form of RDA?
A. Rupee Draft Arrangement
B. Rupee Demand Arrangement
C. Rupee Draw Arrangement
D. Rupee Drawing Arrangement
E. None of the Above

Answer : D. Rupee Drawing Arrangement
Explanation: Rupee Drawing Arrangement (RDA) is a channel to receive cross-border remittances from overseas jurisdictions. Under this arrangement, the Authorised Category I banks enter into tie-ups with the non-resident Exchange Houses in the FATF compliant countries to open and maintain their Vostro Account.
Vostro Account means Local currency account maintained by a local bank for a foreign (correspondent) bank. For the foreign bank it is a Nostro account.

Question. FATF stands for ________
A. Financial Action Task Force
B. Financial Asset Task Force
C. Financial Asset Trade Force
D. Financial Action Trade Force
E. None of the Above

Answer : A. Financial Action Task Force
Explanation: The Financial Action Task Force (on Money Laundering) (FATF), also known by its French name, Groupe d‘action financière (GAFI), is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.

Question. Sukanya Samriddhi Account can be opened up to age of ________ years only from the date of birth
A. Five years
B. Four years
C. Six years
D. Eight years
E. Ten years

Answer : E. Ten years
Explanation: Sukanya Samriddhi Account can be opened up to age of 10 years only from the date of birth.

Question. Yes Bank in August rolled out which facility under its „Yes We Care‟ initiative?
A) 2 months leave for new father
B) 6 months leave for pregnant women
C) work for home
D) adoption leave
E) None of these

Answer : D adoption leave
Explanation: The new policy is called ―Bringing A Beautiful Yes‖. Private sector lender Yes Bank has rolled out adoption benefits for its workforce, in an effort to align organisational objectives with the needs of employees.
Realising that employees need to spend time building an emotional connect with new additions to the family and recognising that many are choosing to adopt children, the organisation has introduced the benefits, which are applicable 1st August onwards.

Question. Which Financial institutions has announced a comprehensive Housing finance scheme called prapti with an attractive 4% interest rate?
A) Tata Capita Housing
B) LIC Housing
C) Reliance Home
D) HDFC Ergo
E) Housing and Urban Development Corporation Ltd.

Answer : A Tata Capita Housing
Explanation: Tata Capita Housing Limited announced a Comprehensive Housing finance scheme called Prapti with an attractive 4% interest rate for people earning less than Rs 6 lakh a year.

Question. Which bank partnered with a fintech start-up Fisdom for personal wealth management services?
A) Bank of India
B) Allahabad Bank
C) Union Bank of India
D) Bank of Baroda
E) None of these

Answer : D Bank of Baroda
Explanation: Vadodara headquartered Public Sector lender Bank of Baroda has entered into partnership with a fintech start-up Fisdom for personal wealth management services.

Question. Investment under senior citizen savings scheme qualifies for the benefit of__________ of the Income Tax Act, 1961.
A. Section 60C
B. Section 70C
C. Section 80C
D. Section 90C
E. None of the Above

Answer : C. Section 80C
Explanation: Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961.

Question. What is the maturity period for senior citizen savings scheme?
A. 3 years
B. 5 years
C. 2 years
D. 5 years
E. 4 years

Answer : B. 5 years
Explanation: There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh in senior citizen savings scheme. Maturity period is 5 years.

Question. Axis Bank has tied up with which payments company to operate its Unified Payments Interface (UPI) enabled app?
A) PayU
B) Paytm
C) Freecharge
D) Mobikwik
E) Oxigen

Answer : C Freecharge
Explanation: Country‘s third largest private sector lender Axis Bank said it is ready with a Unified Payments Interface (UPI) app, while it also announced a tie-up with digital payments company Freecharge for it.

Question. Kotak Mahindra Bank has enabled which of the following banks online shopping portal on its mobile banking app to provide seamless shopping experience for its customers?
A) Flipkart
B) Snapdeal
C) Amazon India
D) Ebay India
E) Mytra

Answer : A Flipkart
Explanation: Private sector lender Kotak Mahindra Bank has enabled online shopping portal Flipkart in its mobile banking application in order to ensure a seamless shopping experience for its customers.
―The biggest problem faced by consumers is the transaction failure during the payment mode. Through this integration the bank will try to solve that problem for our customers.

Question. The Reserve Bank of India will transfer how much surplus to the government for FY‟16 as dividend?
A) Rs 68876 crore
B) Rs 65885 crore
C) Rs 75876 crore
D) Rs 65876 crore
E) Rs 65776 crore

Answer : D Rs 65876 crore
Explanation: The Reserve Bank of India will Rs 65876 crore as surplus transfer to the government for FY‘16, Rs 20 crore less that previous year‘s Rs 65896 crore, a central bank release said.
The surplus approved by the Reserve Bank of India board could be used to fund the centre‘s fiscal deficit .

Question. In Sukanya Samriddhi Account, What is the maximum limit on number of deposits either in a month or in a Financial year?
A. 5
B. 4
C. 6
D. 8
E. No limit

Answer : E. No limit
Explanation: No limit on number of deposits either in a month or in a Financial year.

Question. Which bank has launched USSD based mobile app for basic banking needs with NPCI
A) United Bank of India
B) Union Bank of India
C) UCO Bank
D) Indian Bank
E) Indian Overseas Bank

Answer : B Union Bank of India
Explanation: National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments system in the country has partnered with Union Bank of India to launch an USSD based *99# mobile application for their customers.
This application can be downloaded in an android smartphone from the Google Play Store by the bank customers and can be used even without any internet connection as it does not require any data.

Question. SBI card is going to launch a co-branded credit cards for the customers of private sector bank
A) Karnataka Bank
B) Federal Bank
C) City Union
D) South Indian Bank
E) RBL Bank

Answer : D South Indian Bank
Explanation: South Indian Bank, leading private sector bank, and SBI Card, one of India‘s leading Credit Card issuers, announced the launch of co-branded credit cards for the customers of South Indian Bank.

Question. Times Internet has partnered with which Bank to launch co-branded Debit Card?
A) Punjab National Bank
B) HDFC Bank
C) ICICI Bank
D) SBI
E) None of these

Answer : B HDFC Bank
Explanation: Times Internet (part of Bennett, Coleman & Co that owns The Economic Times), in partnership with HDFC Bank, announced the launch of a co-branded card on Thursday called the Times Points Debit Card.

Question. Recently RBI has made necessary to have certification for bank employees involved in specialised jobs. The deadline to get this certification is
A) April 1, 2017
B) April 1, 2018
C) January 1, 2018
D) January 1, 2017
E) July 1, 2017

Answer : B April 1, 2018
Explanation: Bank employees working in specialised areas such as treasury, risk management and accounting will need to be specially trained and go through certification programmes,Reserve Bank of India directed banks.
The central bank said that bank staff would have obtain the requisite certification before April 1, 2018 for getting posted in these functional areas.

Question. If minimum Rs.1000 is not deposited in Sukanya Samriddhi Account in a financial year, account will become discontinued and can be revived with a penalty of _______ per year.
A. Rs.50
B. Rs.100
C. Rs.25
D. Rs.75
E. Rs.125

Answer : A. Rs.50
Explanation: In Sukanya Samriddhi Account, if minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.

Question. Recently an Indian bank launched next generation features on its app „iMobile‟ which will enable customers to instantly pay taxes and book railway tickets within the app. Name the bank.
A. Federal Bank
B. Punjab National Bank
C. Kotak Mahindra Bank
D. ICICI Bank
E. Bandhan Bank

Answer : D. ICICI Bank
Explanation: New features will enable customers to instantly pay taxes and book railway tickets within the app. iMobile users will also be able to purchase travel & motor insurance as well as buy mutual funds from 19 asset management companies.

Question. According to HSBC, India is expected to contribute how much of the world GDP by the middle of next decade?
A. 4.3%
B. 4.9%
C. 5.2%
D. 3.4%
E. None of these

Answer : B. 4.9%
Explanation: India is expected to equal China‘s 4.9% share of world GDP in 2005 by the middle of next decade and if the country grows faster, the date can be advanced.
India‘s economy grew a stronger-than-expected 7.9% in the March quarter, making it the fastest growing major economy.
HSBC said that if India grows at 8% rate, it would achieve the 4.9% share by 2027.

Question. Which of the following company launched “Receive and Win” campaign for Ramzan?
A. Mobikwik
B. Freecharge
C. Paytm
D. MoneyGram
E. Udio

Answer : D. MoneyGram
Explanation: Global money transfer service provider, MoneyGram, has rolled out Receive & Win, a month-long a promotional campaign set to run throughout the Ramadan period,
beginning 6 June 2016. The exercise affords customers the opportunity to win an allexpense paid Umrah trip for two.
The promotional push by MoneyGram is set to run in the Indian states of Telangana,Bihar, Uttar Pradesh, Gujarat, and Kerala.

Question. _________ are safer than Post Office Schemes as that are covered by the Deposit Insurance and Credit Guarantee Corporation(DICGC.
A. Fixed Deposit
B. Demand Deposit
C. Flexi-Fixed Deposit
D. All of the Above

Answer : A. Fixed Deposit
Explanation: Fixed Deposit investments are safer than Post Office Schemes as they are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC ).

Question. Government has asked banks to increase the coverage under which of the following schemes?
A. Atal Pension Yojana
B. Jan Dhan Yojana
C. Suraksha Bima Yojana
D. Both A and C
E. None of these

Answer : A. Atal pension Yojana
Explanation: Government has asked banks to take steps to increase coverage under the Atal pension scheme as banks failed in meeting the sales target for the social security scheme in the last financial year.
All the large PSBs, including State Bank of India, fell short of the target by a wide margin.

Question. Which of the following is not a „Money Market Instrument‟?
A. Treasury Bills
B. Commercial Paper
C. Certificate of Deposit
D. Equity Shares

Answer : D. Equity Shares
Explanation: There are several money market instruments, including treasury bills, commercial paper, bankers‘ acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage-, and asset-backed securities.

Question. The Department of Posts launched a logo and tagline design contest for its soon-tobe set up India Post Payments Bank on which of the following website?
A. GovPost
B. IndianPost
C. MyGov
D. PayPost
E. None of these

Answer : C. MyGov
Explanation: The cabinet on June 1, 2016, gave its nod to setting up of the IPPB under the Department of Posts.
The Department of Post wants to connect with and involve the people of India in designing the DNA of the India Post Payments Bank. So it launched this contest.
The contest is open to all Indian citizens, institutions, agencies and entities for a period of one month, until July 9, 2016.

Question. Cash kept in the currency chest is owned by?
A. Currency Chest branch bank
B. State Bank of India
C. Central Government
D. Reserve Bank of India

Answer : D. Reserve Bank of India
Explanation: The amount of cash kept in the currency chest belongs to the RBI and is used for maintaining the Cash Reserve Ratio. To facilitate the distribution of banknotes and rupee coins, the Reserve Bank has authorised select branches of scheduled banks to establish currency chests. These are actually storehouses where banknotes and rupee coins are stocked on behalf of the Reserve Bank.

Question. What is the full form of FATCA?
A. Forex Account Tax Compliance Act
B. Foreign Account Tax Compliance Act
C. Forex Account Total Compliance Act
D. Foreign Account Total Compliance Act

Answer : B. Foreign Account Tax Compliance Act
Explanation: The Foreign Account Tax Compliance Act (FATCA ) is a 2010 United States federal law to enforce the requirement for United States persons including those living outside the U.S. to file yearly reports on their non-U.S. financial accounts to the Financial Crimes Enforcement Network (FINCEN).

Question. What is the minimum initial deposit required for opening a Basic Savings Bank Deposit Account(BSBDA )?
A. 500
B. 1000
C. 100
D. No initial deposit

Answer : D. No initial deposit
Explanation: There is no requirement for any initial deposit for opening a BSBDA.

Question. What is the minimum amount of deposit into/withdrawal from currency chest?
A. Rs.1,00,000
B. Rs.1,50,000
C. Rs.2,00,000
D. Rs.3,00,000

Answer : A. Rs.1,00,000
Explanation: The minimum amount of deposit into/withdrawal from currency chest will be Rs.1,00,000/- and thereafter, in multiples of Rs.50,000.

Question. When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as___________
A. Consortium
B. Syndication
C. Multiple Banking
D. Participation

Answer : A. Consortium
Explanation: A banking syndicate formed by multiple banks, often from different countries, for the singular purpose of financing a specific project that is too large for any individual bank to finance on its own. Under this arrangement participating banks acquire a common interest and share equally in the risk and the profits. Upon completion of the project the consortium bank is disbanded.

Question. What is the maximum period for which a term deposit can be normally opened?
A. 8 years
B. 7 years
C. 9 years
D. 10 years

Answer : D. 10 years
Explanation: The tenure of an Fixed Deposit or Term Deposit can vary from 7, 15 or 45 days to 1.5 years and can be as high as 10 years.

Question. DICGC guarantees amount up to _____________ per depositor per bank.
A. Rs.1,00,000
B. Rs.1,50,000
C. Rs.2,00,000
D. Rs.3,00,000

Answer : A. Rs.1,00,000
Explanation: DICGC guarantees amount up to Rs. 1,00,000 per depositor per bank. They also offer income tax and wealth tax benefits.

Question. Which of the following international organization has lead the race to buy stake in government controlled IDBI bank?
A. Asian Development Bank
B. Commonwealth Development Corporation
C. International Finance Corporation
D. GIC of Singapore
E. None of these

Answer : C. International Finance Corporation
Explanation: World Bank‘s private sector lending arm International Finance Corporation (IFC ) has emerged as the top contender to buy around 15 per cent in government controlled IDBI Bank, even as talks have been held with at least three other players-GIC of Singapore, Asian Development Bank and Commonwealth Development Corporation. IFC is World Bank arm and is looking for a greater say in running IDBI.

Question. A type of loan, where the bank or the lending institution provides the borrower with a loan that helps the borrower to pay off his all previous debts is termed as________
A. Debt Recovery
B. Debt Settlement
C. Debt Management
D. Debt Consolidation

Answer : D. Debt Consolidation
Explanation: Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others.

Question. Which of the following institutions do not hold a banking license?
A. Small Banks
B. Foreign Banks
C. Commercial Banks
D. NBFCs

Answer : D. NBFCs
Explanation: Non-banking financial companies, or NBFCs, are financial institutions that provide banking services, but do not hold a banking license. These institutions are not allowed to take deposits from the public.

Question. Who among the following decides the volume and value of bank notes to be printed in India?
A. RBI
B. SBI
C. Security Printing and Minting Corporation of India
D. All of the Above

Answer : A. RBI
Explanation: The Reserve Bank based on the demand requirement indicates the volume and value of banknotes to be printed each year to the Government of India which get finalised after mutual consultation. The quantum of banknotes to be printed, broadly depends on the requirement for meeting the demand for banknotes, GDP growth, replacement of soiled banknotes, reserve stock requirements, etc.

Question. An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which Act criminal action can be initiated?
A. Negotiable Instrument Act 1881
B. Criminal Procedure Code
C. Payment and Settlement Systems Act 2007
D. Indian Companies Act 1956

Answer : C. Payment and Settlement Systems Act 2007
Explanation: Under the Section 25 of Payment and Settlement Systems (PSS) Act, 2007, dishonour of an electronic fund transfer instruction due to insufficiency of funds in the account etc., is an offence punishable with imprisonment or with fine or both, similar to the dishonour of a cheque under the Negotiable Instruments Act 1881.

Question. Which payment company launched a new POS terminal which seeks to ease payments across millions of small merchant outlets across India?
A. PayUmoney
B. Udio
C. Paytm
D. MoneyGram
E. None of these

Answer : A. PayUmoney
Explanation: It can allow even the smallest of merchants to start accepting card based payments. It can accept all credit/debit cards.
The POS terminal is easy to set up, can be operated using a pre- or post-paid SIM, and does away with the use of paper receipts—making it cost & battery effective, and, of course, very environment friendly. With a simple and hassle-free documentation policy, a merchant can start using a PayUmoney POS terminal within 48 hours of signing up for the service.