1. A cheque is received by the branch for payment issued by one of the customers.
Meanwhile a request is received by a public prosecutor informing that the person
issued the cheque is imprisoned for criminal activity and directs the branch not to
make payment of the said cheque. What is expected by the branch?
a) Branch should not make the payment
b) Branch should ask for court order
regarding imprisonment of the customer
c) Branch should insist written request from
the public prosecutor
d) Branch can make the payment.
Ans: d

2. With regard to lockers, which of the following guideline is not issued by the RBI?
a) Branches are to link the allotment of lockers to placement of fixed deposits
b) To ensure prompt payment of locker rent, branch are to obtain a Fixed Deposit which
would cover 3 years rent and charges for breaking open the locker
c) Branch Manager can allot the 1/3rd of vacant lockers
d) Wait list of lockers need not be maintained
Ans: a

3. Within the bank’s aggregate capital market exposure of ………of its net worth the
bank’s direct investment in shares/convertible bonds/debentures, units of equity
oriented mutual funds/Venture Capital funds should not exceed ……..of its net worth.
a) 40% & 15%
b) 30% & 15%
c) 40% & 20%
d) 80% & 50%
e) No ceiling
Ans: c

4. As per the compensation policy of the bank with regard to collection of foreign
cheques, bank shall pay compensation @ …….. to the customer if the delay is beyond
45 days.
a) SB Interest
b) Term Deposit Rate
d) SB Interest + 0.75%
e) None
Ans: d

5. Official Language Implementation Committee meetings are to be held once in.…
a) Two months
b) Three months
c) Six months
d) Twelve months
e) None
Ans: b

6. In terms of direction of RBI & IBA on simplified procedure for settlement of
claims preferred by the legal heirs of the deceased constituents, bank has to settle
the death claims involving amount up to Rs………
a) `10000
b) `50000
c) `100000
d) `25000
e) None
Ans: c

7. The minimum capital required to start a new private sector bank (other than
Payments Banks & Small Finance Banks) is…
a) `100 crore
b) `200 crore
c) `300 crore
d) `400 crore
e) `500 crore
Ans: e

8. CDR mechanism, which of the following is not correct.
a) Multiple Bank Accounts
b) `10 crores & above
c) Fund & Non-fund based
d) Preserving viable corporates
e) Account should be NPA
Ans: e

9. Branches can negotiate bills drawn under LC for non-constituents, if
a) LC is restricted to our bank only, subject to the condition that the Proceeds will be
remitted to the regular banker of the beneficiary
b) LC is not restricted and proceeds
will be remitted to the beneficiary
c) LC bearing the clause without recourse
d) None
Ans: a

10. X depositor approached the branch with term deposit receipt of `2 lakhs which
was due in the year 2008 and not interested for renewal of the matured deposit and
requesting for payment of interest for overdue period. How do you act?
a) No interest will be paid since the deposit is not renewed
b) Term Deposit applicable interest at the time of maturity will be paid for the overdue period
c) Interest rate at the time of maturity or at the time of renewal whichever is lower
will be paid for overdue period
d) SB interest will be paid for the overdue period
Ans: d

11. Which of the following Interest rates are still regulated by RBI?
a) SB Deposits
b) Commercial Loans
c) DRI Loans
d) b & c
e) all
Ans: c

12. Which of the following scheme is launched to provide pension to the members of
unorganized sectors in India?
c) Jeevan Dhara
d) Jeevan Kalyan
e) Atal Pension Yozana
Ans: e

13. To be eligible for classification under priority sector, the ceiling prescribed for
lending to Agriculture Infrastructure (Cold Storage, Soil conservation, Tissue culture,
Bio fertilizer, Vermi culture etc.,) is
a) `50 lakhs
b) `100 lakhs
c) `200 lakhs
d) `300 lakhs
e) None
Ans: b

14. Right of Set-off refers to
a) Marking of lien in deposit account of the borrower
b) Transfer of term deposit
balance, which is due for maturity in the next year to borrower account for
adjustment of overdues
c) Transfer of Savings Bank balances to borrower account
for adjustment of overdues in loan account of the depositor
d) b & c
e) None
Ans: c

15. A term deposit of `500000/- in the name of individual with one year tenor is
cancelled prematurely. The penalty for premature closure is….
a) 0.50%
b) 1.00%
c) 1.50%
d) 2.00%
e) No charges
Ans: e

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