Question Bank : General Banking

1: Under which section is a cheque defined in NI Act?

a) Section 5
b} Section 6
c) Section 8
d) Section 13
2: Nomination of deposit is dealt under
a) RBI Act
b) Negotiable Instruments Act
c) Banking Regulation Act
d) Indian Contract Act
3: Sec 131 of NI Act,1881 extends protection to the
a) Paying Banker
b) Collecting Banker
c) Advising Banker
d) Issuing Banker
4: A cheque is dated 12/05/15. The due date is
a) 12-08-2005
b) 14-09-2005
c) 12-11-2005
d) None
5: A cheque wherein the date is altered
a) Inchoate instrument
b) Materially altered
c) Conversion
d) An instrument in order
6: SB cheque dated 30.03.2015 was presented in clearing on 5.4.2015 and the drawer of the cheque expired on
4.4.2015. The cheque is in favour of LIC
a) Cheque should not be honoured.
b) Cheques can be honoured, as the payee is LIC.
c) Cheque can be honoured as the date of cheque is prior to the date of his death
d) Obtaining the signatures of his legal heir, we can pass
Answers
1. b
4. d

2. c
5. b

3. b
6. a

Question Bank : General Banking

7: Maintenance of Statutory Liquidity Ratio is covered as per section ---- of RBI act
a) Section 24
b) Section 42
c) Section 26
d) Section 45
8: A holder for value is :
a) A bank allows one of its clients to withdraw against clearing of a cheque
b) A bank which maintains high net worth
c) A bank which collects cheques for non customers
d) A bank which handles high value clearing cheques
9: Can a minor be a nominee
a) He can not.
b) Yes. But with a guardian
c) Yes. His father alone as guardian
d) Yes. His mother as guardian
10: A person belonging to a particular community comes and requests for opening a FDR account and not to pay any
interest to him, as acceptance of interest on deposits / loans is prohibited in their community
a) We can credit interest to our income account.
b) We can credit interest to a poor mans SB account.
c) We need not charge interest in his FDR account.
d) We cannot accept such deposit.
11: Your branch receives a cheque for payment but the cheque bears the words order of bearer
a) It will be treated a bearer cheque and the payment will be made accordingly
b) It will be treated ambiguous instrument and the cheque would be returned
c) It will be treated as incomplete instrument and will be returned
d) It will be treated as an order cheque and payment will be made accordingly
12: Accounts of Executor and Administrators can be opened only with the permission of
a) CO: Legal Dept
b) RBI
c) Court
d) Official Receiver
Answers
7. b
10. d

8. a
11. a

9. b
12. a

Question Bank Topic : General Banking

13: All credits and debits in unclaimed deposit a/cs are to be authorized by
a) The Branch Manager and another Officer.
b} Any 2 officers.
c) One Spl. Asst. with an Officer.
d) SB Officer alone
14: At the time of opening a deposit account we need not obtain photographs
a) Of persons signing in fiduciary capacity
b) For term deposit accounts alone.
c) For the accounts which were opened prior to 31.12.93 even if some more names are added subsequently
d) term deposit accounts, where amount of deposit is below Rs. 10,000/
15: Banking Codes and Standards Board of India, has been constituted as a
a) joint stock company
b) trust
c) society
d) partnership firm
16: Can a cheque issued by a deceased authorized signatory (partner) be passed for payment
a) We cannot pass.
b) With the consent of all the partners we can pass.
c) Subsequent authorized partner should countersign the cheque, for passing.
d) If 2 other partners out of 8 partners countersign we can pass
17: A NBFC cannot offer interest rates higher than the ceiling rate prescribed by RBI. What is the present ceiling
rate?
a) 10%
b) 12%
c) 12.50%
d) 13%
18: Can a minor nominate a nominee
a) His guardian in the account can nominate
b) Any adult person can nominate.
c) He can not nominate.
d) Court can nominate.
Answers
13. a
16. b

14. d
17. c

15. c
18. a

Question Bank Topic : General Banking

19: Can there be automatic revocation of Mandate / POA

a) No
b} Only if cancelled by the holder of Mandate / POA
c) Yes in case of death, insanity, insolvency of the Principal.
d) Only if cancelled by the Principal.
20: Can we hand over the original of the paid cheques to the a\c holder, if he requests
a) Yes if requested by all depositors
b) Yes if requested by Govt./Public Sector companies without the permission of C.O.
c) No
d) 2 and 3.
21: With effect from 01 09 2015, Opening for business hours and initial cut off for customer transactions time in
RTGS is
a) 8 am to 4.30 pm
b) 8 am to 6.30 pm
c) 8 am to 7.45 pm
d) 8 am to 8 pm
22: Can we open a current account / issue chequebook to an illiterate person
a) No.
b) We can issue. But only cash transactions are allowed.
c) Yes. No restrictions.
d) Only one cheque book, at a time, in the presence of a witness.
23: Can we open a current account in the name of a minor to be operated by himself or by his guardian
a) No.
b) If permitted by ZM, we can open.
c) If permitted by ZM, we can open a CA in the name of the minor and allow the guardian to operate the minors
account.
d) Yes we can open and allow minor to operate, without allowing OD.
24: Can we open a SB a/c in the name of a minor, to be operated by a minor himself, without guardian
a) No.
b) Only guardian can operate.
c) Yes. If he has attained the age of 14 and has the power of understanding
d) Yes. If he is above 16 years
Answers
19. c
22. a

20. d
23. c

21. a
24. c

Question Bank Topic : General Banking

25: Can we open a SB account for a blind person

a) Yes with his thumb impression.
b} Yes. But witness to be obtained for all credit and debit transactions.
c) Yes. But witness to be obtained ONLY for debit transactions.
d) No.
26: Can we open a term deposit a/c in the name of minor, to be operated by mother as a guardian, when the father is
alive. If so, can we sanction LOD, to the mother.
a) No
b) We can open. But, when we sanction LOD, father has to sign the documents or to give his written
acceptance and no objection.
c) Yes. We can sanction LOD also to the mother.
d) Father alone can be the guardian to operate a minors account.
27: Can we open an a/c for a Trust, if there is no Trust Deed, but the Trust is registered with the Charity
Commissioner
a) No.
b) If manager is willing
c) Trust deed is to be registered
d) Yes, if otherwise in order.
28: Can we open SB account as Joint account of illiterate persons
a) yes, with the permission of CH
b) With witness we can allow operation.
c) yes
d) No
29: Can we write the nominees name in the deposit receipt/ passbook
a) We should not write.
b) It will reveal the secrecy of nomination.
c) If specifically requested, we can write.
d) We can write in a separate sheet and give
30: Commercial paper can be issued for amaximum period of
a) 1 year
b) 2 years
c) 3 years
d) 5 years
Answers
25. b
28. c

26. b
29. c

27. d
30. a

Question Bank Topic : General Banking

31: Commercial paper is an unsecured money market instrument issued in the form of
a) A Bill
b} A Promissory note
c) Warrant
d) Certificate
32: Depositor Education andAwareness Fund (DEAF) is maintained with
a) Corporate Office
b) RBI
c) Public Provident Fund Authorities
d) SIDBI
33: Who is the appellate authority in Banking Ombudsman?
a) Deputy Governor of RBI
b} Apellete Authority
c) Supreme Court Judge
d) Chief Justice, High Court
34: Who are the members of the Joint Customer Service Committee apart from select customers?
a) Branch Manger + Officer + Award Staff
b) Deposit Customer + loan borrower + branch manager
c) Depositor + Clerk + Sub staff
d) Regional Manager + Manager + Officer
35: While opening an account in case of partnership firm, one of the vital document to be produced by the firm is
a) Partners MOU
b) Partnership Deed
c) Registration certificate of Partnership
d) Signatures of the partners
36: While accounts are transferred from one branch to another, the receiving branch is expected to comply with KYC
Norms. Which one of the following is/are correct in this regard?
a) Detailed verification of Customer Profile as received from the earlier branch is to be done with caution
b) Detailed verification is not needed but the account is opened immediately and informed to the customer
c) Fresh details are to be obtained and a fresh customer profile is to be prepared
d) No transaction is to be permitted for the first six months till the customer is fully know to the bank
Answers
31. b
34. a

32. b
35. b

33. a
36. c

Question Bank Topic : General Banking

37: For which among the following documents, acceptance of the drawee of the instrument is required
a) demand promissory note
b} Usance promisory ntoe
c) Demand Bill of exchange
d) Usance Bill of exchange
38: While a banking company can undertake trading in securities but it cannot trade in goods, under the provision of
which of the following
a) Companies Act 1956
b) Banking Regulation Act 1949
c) RBI Act 1934
d) Indian Contract Act 1872
39: How many nominee \s are allowed under Capital Gain Scheme
a) Maximum 3
b) Only one
c) No nomination
d) Maximum 4
40: How much fee charged to file a complaint under Banking Ombudsamn?
a) Rs.500/b) Rs.1000/c) Rs.100/d) No fee
41: In a Garnishee Order, the banker on whom garnishee order served is:
a) Judgement
b) Judgement
c) Judgement
d) Judgement

Debtors Creditor
Creditors Creditor
Creditor's Debtor
Debtors Debtor

42: In what denominations Commercial Paper can be issued?

a) Rs.10 lakhs
b) Rs.5 lakhs
c) Rs.2 lakhs
d) Rs.1 lakh
Answers
37. d
40. d

38. b
41. d

39. a
42. b

Question Bank Topic : General Banking

43: Is it necessary to stamp the mandate and Power of Attorney

a) Both should be stamped
b} Mandate need not be stamped. POA is to be stamped.
c) Both need not be stamped.
d) We do not accept mandate.
44: Is there any restriction about the number of cheques to be issued, by a current account depositor
a) 200 cheques per year.
b) 100 cheques per year.
c) 50 cheques per half year.
d) No restriction
45: A customer can file a complaint under Banking Ombudsman scheme within a period of------- from the cause of
action
a) 1 year
b} 2 years
c) 6 months
d) 1 month
46: Mandate / POA of a Partnership firm, in favour of a third party to be signed by
a) Mandate / POA has to be signed by all the partners.
b) Third party cannot be issued with a Mandate / POA.
c) Yes, we can act upon.
d) In partnership firm no mandate / POA is permitted
47: Mimimum amont for certificate of deposit has been fixed at
a) Rs.10 lakhs
b) Rs.5 lakhs
c) Rs.2 lakhs
d) Rs.1 lakh
48: Mimimum paid up capital requirement for foreign Banks that want to set up operations India
a) Rs.1000 crores
b) Rs.500 croes
c) Rs.250 crores
d) Rs.100 crore
Answers
43. b
46. a

44. d
47. d

45. a
48. b

Question Bank Topic : General Banking

49: Mimimum paid up capital requirement of both small banks and payment banks in India
a) Rs.1000 crores
b} Rs.500 croes
c) Rs.250 crores
d) Rs.100 crore
50: NBFCs are allowed to accept / renew public deposits for a minimum period of -- months and maximum period of - months
a) 6, 60
b) 12,50
c) 6,12
d) 12,60
51: New method adopted by Central Bank for measuring inflation is
a) Consumer Price Index
b) Producer Price Index
c) Wholesale Price Index
d) Index of industrial production
52: No penalty is charged for foreclosure of deposits upto
a) Rs.5 lakhs
b) Other than bulk deposits upto Rs.15 lakhs
c) Rs.5 lakhs provided deposit has been retained atleast for 181 days
d) All deposits upto 90 days
53: Nomination has to be registered ONLY, if requested
a) Yes only if requested.
b) If nomination is not required this should be declared and signed in the opening form.
c) Nomination is available only to few types of accounts
d) None of this.
54: Introducer for opening a current account should have:
a) SB account with us
b) Term deposit with us
c) Loan account with us
d) Either current account or reputed SB account with us
Answers
49. d
52. c

50. d
53. b

51. a
54. d

Question Bank Topic : General Banking

55: One of the sources that is available to identify the correctness of the information given by the New Customer of
the Commercial Bank is
a) Introduction given by the existing customer of the Bank
b} By studying the account opening form
c) By providing information by the agencies like CRISIL
d) Reference to customer's employer
56: Which one of the following is not barred by law of limitation?
a) Pledge
b) Hypothecation
c) Banker's lien
d) Guarantee
57: RBI gave in-principle for Banking license to two entities
a) HDFC and IDBI
b) IDFC and Bandhan
c) State Co-operative Bank
d) Financial Services
58: RBI has allowed banks to shift merge or close without its approval for
a) rural branches
b) rural, urban, semi-urban branches
c) any branch as decided by the respective Bank including metro branches
d) all branches excpet rural and sole semi-urban branches
59: A Consumer complainant can file a complaint with a period of-----from the cause of action
a) 1 year
b) 2 years
c) 6 months
d) 1 month
60: In case of VRD account, interest is calculated in
a) September and March
b} March
c) on the due date of the deposit
d) January and July
Answers
55. c
58. d

56. c
59. b

57. b
60. a

Question Bank Topic : General Banking

61: The minimum and maximum number of persons in a private limited company now is
a) 1,50
b} 1,100
c) 2,50
d) 2,200
62: The necessity for obtaining introduction is because
a) It is a practice.
b) It is RBIs Instruction
c) It is to have protection under NI Act for collection of cheques, avoid benami transactions, to weed unlawful
elements.
d) It is IBAs guidelines
63: The online portal which focuses on improving the business environment in the country by enabling fast and
efficient access to Government-to-Business (G2B) services is called
a) e-Governance
b) e-Information
c) e-Biz
d) e-Communication
64: The reason to be quoted for returning a cheque, on account of receipt of Garnishee order
a) Garnishee order received.
b) Present cheque after vacation of Garnishee order.
c) Refer to drawer.
d) Insufficient funds
65: When should we transfer the inoperative a\cs to C.O. Accounts
a) Transfer to CO, if there is no continues operation for 2 yrs.
b) If there is no credit transaction for 2 years, transfer to CO.
c) We need not transfer to CO.
d) If there s no debit transaction for 2 years, transfer to CO.
66: The term pass through certificate is used in the context of which of the following:
a) forfaiting of export bills
b) venture capital transactions
c) securitisation of receivables
d) factoring of domestic receivables
Answers
61. d
64. c

62. c
65. c

63. c
66. c

Question Bank Topic : General Banking

67: There can be more than one nominee in case of

a) Unit deposit Scheme.
b} Capital Gains Scheme.
c) Variable Recurring Deposit Scheme.
d) Vidya Nidhi Deposit Scheme.
68: When money is lent or borrowed for between 2 days and 14 days, it is called as
a) Call money
b) Notice money
c) Term money
d) Negotiable Instrument
69: Under Soverign Gold Bond Scheme 2015-16, bond is valid for a period of
a) 10 years
b) 8 years
c) 6 years
d) 5 years
70: Under Soverign Gold Bond Scheme 2015-16, investment should be
a) Rs.1000/- minimum
b) Minimum 2 grams maximum 500 grams
c) Minimum 1 gram maximum 1000 grams
d) No cut off limits
71: Under Soverign Gold Bond Scheme 2015-16, investors will be issued
a) FD receipt
b) RD receipt
c) Debenture
d) Holding certificate
72: Under Soverign Gold Bond Scheme 2015-16, price of bonds is fixed on the basis of
a) Notional rate ruling on that date
b) Future value based on IRR
c) Per week simple average closing price for gold 999 published by India Bullion & Jewellers Assn. Ltd.
d) Average of global market value on the date of purchase
Answers
67. b
70. b

68. b
71. d

69. b
72. c

Question Bank Topic : General Banking

73: Smurfing means

a) large number of cash deposits into same account
b) one voucher for high value deposit
c) low value denominations of cash
d) Many transactions of cash and transfer of admissible amount
74: What are the occasions where we have to obtain PAN / GIR no or Form 60\61?
a) On documents pertaining to time deposits exceeding Rs 50000 and also for opening other accounts
b) For all deposit accounts irrespective of the amount
c) Only for deposits of Rs.50,000.00 and above (including SB)
d) No such rule.
75: What are the restrictions in the maximum number of partners in a Partnership firm. Should a minor be counted
as a partner?
a) It is 20 for all firms of different activities.
b) It is 15 for all activities.
c) For Banking activities it is 10. For others it is 20. Minors are not counted.
d) For Banking activities it is 10. For others it is 20. Minors are also counted.
76: What are the transactions for which we have to send credit debit advices to the depositors
a) Only for specific standing instructions / requests made by customer
b) For all credits and debits (other than counterfoil acknowledged), except incidental charges and interest.
c) For credits relating to OBC/BP realization.
d) For all debits only
77: What are the types of a/cs under capital gain scheme
a) only RD
b) Only FDR
c) Only RIP
d) FDR \RIP
78: What is Marginal Standing Facility?
a) Same as repo rate
b) Same as reverse repo rate
c) Penal rate at which banks can borrow money from the central bank over and above what is available to them
through the LAF window
d) Same as Cash reserve ratio
Answers
73. a
76. b

74. a
77. d

75. c
78. c

79: When both duplicate & original DD are presented for payment which one has tobe paid?
a) Original is to be paid
b) Duplicate is to be paid
c) Both to be returned
d) Refer to the issuing branch
80: What should you do if a SB / current a/c is sought to be closed within 3 months from the date of opening.
a) Obtain ZMs permission and then close
b) Ask him to come after 6 months.
c) Close and pay and recover service charge
d) Close with out recovering service charges
81: What is the minimum and maximum investment that can be made in Public Provident Fund?
a) 100, 100000
b) 500, 100000
c) 500, 150000
d) 5000, 150000
82: What is the minimum denomination of Treasury Bills to issue in India
a) Rs. 10,000
b) Rs. 25,000
c) Rs. 50,000
d) Rs. 100,000
83: What is the preservation period for paid instruments
a) 5 years
b) 8 years
c) 3 years
d) permanent record
Answers
79. b
82. b

80. c
83. b

81. c