1.

The basic document for sanction of pension, issued by the competent

authority is called :
Marks: 1+ 0.25Pension Payment Order (P.P.O)
Pension Disbursement Order (P.D.O.)
Letter of authority for drawing pension
Pension sanction letter
None of the above.
The Correct Answer is :
Pension Payment Order (P.P.O)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
2. Life certificate is obtained from a pensioner :
Marks: 2+ 0.5in the beginning of pension.
once in two years in the month of November.
every year in the month of November.
every year in the month of April
None of the above
The Correct Answer is :
every year in the month of November.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
3. The salient features of genuine current notes are :
Marks: 2+ 0.5All genuine notes must have water mark of the Ashoka Pillar, in the left
hand window.
All genuine notes of Rs. 5 and above have a security thread embedded
vertically which should not only be discernible as a dark line when held
against light but also when the note is held slantingly.
Genuine notes are printed in distinctive body colours over rainbow tints
consisting of fine lines. The printing is neat and clean and free from broken
lines and smudges.
All of the above
(a) and (b)
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
4. Which of the following types of notes should be rejected under RBI note
refund rules ?
Marks: 2+ 0.5Defective notes bearing 'Pay'/Paid' (or 'REJECT') stamp of any RBI issue
office or any bank branch
Any note with slogans and message of political nature written across it.
The notes, which are found to be cut or tampered with, deliberately.
All of the above
None of the above.
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined

Module : Module B
Chapter : Chapter1
5. A mandate is :

Marks:

2+ 0.5-

an order issued by the competent court to authorise a person to operate

any account of bank.
an authority, in writing, given by the account holder to another person
empowering him to operate his account on his behalf.
an authority of board towards operation of an account.
All of the above
None of the above
The Correct Answer is :
an authority, in writing, given by the account
holder to another person empowering him to operate his account on his
behalf.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
6. A mandate :
Marks: 2+ 0.5can not be revoked during the life time of the account holder.
can only be revoked by an order of the competent court.
can be revoked only with the condition of the delegatee (i.e., the agent
whose favor mandate is given.
may be revoked in any time by the account holder, expressly or impliedly,
wholly or in part.
None of the above
The Correct Answer is :
may be revoked in any time by the account
holder, expressly or impliedly, wholly or in part.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
7. Under a mandate, the mandate holder signs the cheques :
Marks: 2+ 0.5in his individual capacity
as an agent of the account holder
as an executor of the customer
All of the above
None of the above
The Correct Answer is :
as an agent of the account holder
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
8. A mandate automatically ceases with :
Marks: 2+ 0.5the death of the customer
the insolvency of the customer
the mental in capacity of the customer
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined

Module : Module B
Chapter : Chapter1
9. A mandate may not cease to operative in the event of :

Marks:

2+ 0.5-

death of the mandate holder

lunacy of the mandate holder
insolvency of the mandate holder
All of the above
None of the above
The Correct Answer is :
insolvency of the mandate holder
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
10. Whether a minor can he appointed as a mandate holder to operate a
current account including power of over drawing of the account ?
Marks:

2+

0.5-

No, a minor is incompetent to contract.

Yes, a minor may be allowed to operate the account but not to overdraw
the account.
Yes, there is no bar to a minor being appointed as an agent and operate
the account including overdraw the account. In accordance with the
authority given.
All of the above
None of the above
The Correct Answer is :
Yes, there is no bar to a minor being appointed as
an agent and operate the account including overdraw the account. In
accordance with the authority given.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
11. A power to operate the account :
Marks: 2+ 0.5necessarily implies to overdraw the account.
Includes power to borrow money in accordance with the customer of
trade.
implies the power to draw, accept and endorse bills of exchange.
does not imply power to overdraw the account or to draw accept and
endorse the bills of exchange.
None of the above
The Correct Answer is :
does not imply power to overdraw the account or
to draw accept and endorse the bills of exchange.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
12. An illiterate customer who is having a Saving Bank a/c intends to
authorise another person to operate his account :
Marks: 2+ 0.5An illiterate cannot appoint an agent due to incompetent to contract.
Since an illiterate person cannot grant a power of attorney: his request
can not be considered.
The illiterate customer has to execute power of attorney.

All of the above

None of the above
The Correct Answer is :
The illiterate customer has to execute power of
attorney.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
13. The term 'Power of Attorney' refers to :
Marks: 2+ 0.5an instrument by which one person is empowered to act for another
person
an authority to operate a bank account
power of a person
All of the above
None of the above
The Correct Answer is :
an instrument by which one person is empowered
to act for another person
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
14. A person, who is authorised by a Current Account holder to operate on
his account under a power of attorney. He has to sign cheques as :
Marks:

2+ 0.5-

sans recourse
for self and on behalf of
per pro
on behalf of
None of these
The Correct Answer is :
per pro
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
15. A power of attorney is terminated on the :

Marks:

death of the customer

lunacy of the customer
insolvency of the customer
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
16. A power of attorney cease to be operative on the :

1+ 0.25-

Marks:

2+ 0.5-

death of the person in whose favour power of attorney is given

death of the customer
insolvency of the customer
All of the above
None of the above

The Correct Answer is :

All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
17. The term customer is defined under :

Marks:

2+ 0.5-

Banking Regulation Act, 1949.

Negotiable Instruments Act, 1881
It is not defined anywhere.
Banker Customer Relation Act.
(a) and (b).
The Correct Answer is :
Negotiable Instruments Act, 1881
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
18. Whom would you consider a customer of the bank ?
Marks:

2+ 0.5-

A person who visits the bank daily for encashment of cheques, DDs and
retirement of Bills.
A person who has a duty introduced account of any nature with the bank.
A person who intends to open an account after few days.
None of the above.
All of the above.
The Correct Answer is :
A person who has a duty introduced account of
any nature with the bank.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
19. In a deposit account, the relationship between bank and customers.
Marks:

2+ 0.5-

Bailee and Bailor.

Debtor and Creditor.
Principal and Agent.
Trustee and Beneficiary.
None of the above.
The Correct Answer is :
Debtor and Creditor.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
20. When banker has allowed an overdraft to a customer, then relationship
between bank and customer will be of :
Marks: 2+ 0.5Creditor and Debtor.
Agent and Principal.
Trustee and Beneficiary.
All of these.
None of the above.
The Correct Answer is :
Creditor and Debtor.
You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
21. In case of safe custody of articles, relationship between bank and
customer is :
Marks: 2+ 0.5Agent and Principal.
Bailee and Bailor.
Lessor and Lessee.
Creditor and Debtor.
None of the above.
The Correct Answer is :
Bailee and Bailor.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
22. While collecting cheques/bills etc. for a customer, the bank acts as :
Marks:

2+ 0.5-

an agent of the customer.

a trustee of the customer
a pledger
a debtor
None of the above
The Correct Answer is :
an agent of the customer.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
23. The relationship between the bank and the customer, in case of locker is
:
Marks: 2+ 0.5Lessor and Lessee
Pledger and Pledgee
Principal and Agent.
None of these
Trustee and Beneficiary
The Correct Answer is :
Lessor and Lessee
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
24. The principal functions of the bank are to :

Marks:

2+ 0.5-

acceptance of deposits for leading and investments

clearing
adjustiment and reconciliation of inter branch transactions
dispatch of monthly statements to its customer
None of the above
The Correct Answer is :
acceptance of deposits for leading and
investments
You did not answer the question.
Explanation :
undefined

Module : Module B
Chapter : Chapter1
25. A banker is under statutory obligation to honour the cheques of
customers, provided that :
Marks: 2+ 0.5cheques are drawn in proper form and tendered during business hours.
there is sufficient balance in the account to meet the cheque or
arrangements have been made for an overdraft.
there is no legal bar for making such payment.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
26. A banker's obligation to honour his customer's cheques is suspended by
virtue of operation of law when he is served with :
Marks: 2+ 0.5Garnishee order
Attachement order issued by Income Tax Officer under the provisions of
Section 226 (3) (1) of the Income Tax Act, 1961.
Notice of customer/s lunacy.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
27. A banker's obligation to honour cheques comes to an end when :
Marks:

2+ 0.5-

the customer is adjudged insolvent.

the customer has gone out of India.
the customer is sentenced imprisonment is a criminal case
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
28. The right of a creditor to retain the goods or property of a debtor till the
time the debt is discharged is known as :
Marks: 2+ 0.5Set-off
Appropriation
Lien
None of the above
[a) and (b)
The Correct Answer is :
Lien
You did not answer the question.
Explanation :
undefined

Module : Module B
Chapter : Chapter1
29. Which committee has submitted its report during Dec. 1991 on customer
service ?
Marks: 2+ 0.5Talwar Committee.
Tarapore Committee
Goiporia Committee
Tandon Committee
None of the above
The Correct Answer is :
Goiporia Committee
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
30. To take protection under Section 131 of the negotiable Instruments Act,
1881, the word 'customer' should mean :
Marks: 2+ 0.5a person who has properly introduced account with the bank.
a person who approaches the bank of credit limits.
Any person who comes to the bank for conduct of any lawful business.
All of the above
None of the above
The Correct Answer is :
a person who has properly introduced account
with the bank.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
31. When a bank acts on the standing instructions of the customer to pay
bills of utility services such as electricity, telephone etc,; the relationship
between two is of :
Marks: 2+ 0.5Principal and Agent
Owner and Servant
Trustee and Beneficiary
All of these
None of the above
The Correct Answer is :
Principal and Agent
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
32. Customer is an important visitor draft by depositing cash with the bank.
Marks:

2+ 0.5-

Mahatama Gandhi
Atal Behari Bajpayee
Indira Gandhi
Jawahar Lal Nehru
None of the above
The Correct Answer is :
Mahatama Gandhi
You did not answer the question.
Explanation :
undefined

Module : Module B
Chapter : Chapter1
33. A customer purchases a demand draft by depositing cash with the bank.
The relationship between two is of :
Marks: 2+ 0.5Principal and Agent.
Creditor and Debtor.
Trustee and Beneficiary.
Bank and Customer
None of the above
The Correct Answer is :
Principal and Agent.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
34. A person who takes the loan from the bank and assigns his insurance
policies, in favour of the bank. The relationship will be of :
Marks: 2+ 0.5Pledger and Pledgee
Assignor and Assignee
Creditor and Debtor
Beneficiary and Trustee
None of the above
The Correct Answer is :
Pledger and Pledgee
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
35. Talwar committee submitted its report during 1977, the task assigned to
the committee pertains to :
Marks: 2+ 0.5Priority Sector Lending
Customer Service
Bank frauds
All of these
None of the above
The Correct Answer is :
Customer Service
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
36. When a person deposits money with the Bank for remitting the same by
way of Telegraphic Transfer for credit of account of the person at another
branch of the bank. The relationship between two is of :
Marks: 2+ 0.5Beneficiary and Trustee.
Principal and Agent.
Debtor and Creditor.
Depositor and Acceptor.
None of the above.
The Correct Answer is :
Beneficiary and Trustee.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1

37. In branches, which of the following committee is constituted to take

care of customer service:
Marks: 2+ 0.5Customer Service Committee.
Customer Care Division.
Customer Entertainment Cell.
Welfare Committee.
None of the above.
The Correct Answer is :
Customer Service Committee.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
38. For withdrawing money from the account, a customer has to :

Marks:

2+

0.5-

demand the money by way of cheque or other such mode.

demand the money at a branch where account is being maintained.
demand the money within working hours of the branch.
All of the above.
None of the above.
The Correct Answer is :
All of the above.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
39. A person becomes customer of the bank, the moment :
Marks: 2+ 0.5he lenders account opening form.
Bank accepted his Account Opening Form.
Bank conveys in writing that he become the customer.
All of the above.
None of the above.
The Correct Answer is :
Bank accepted his Account Opening Form.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
40. A customer has demanded payment from his Savings bank Account, but
due to some internal problems, bank could not make the payment. Customer
can claim the money, legally, in this case, within :
Marks: 2+ 0.524 hours.
3 days.
3 years.
Any time at the discretion of customer.
12 years.
The Correct Answer is :
3 years.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
41. Through an oversight, the bank credited a sum of Rs. 5 lac to he current
account of M/s X Fabricator Limited, instead of current account of M/s
Fabrications. When the mistake was detected, M/s X Fabricators Limited

went in liquidation. What is relation between the bank and the company ?
Marks:

2+ 0.5-

Creditor-Debtor.
Beneficiary-Trustee.
No relationship.
Bailor-Bailee.
None of the above.
The Correct Answer is :
Creditor-Debtor.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
42. Who has issued guidelines for know your customer [KYC] principle ?
Marks:

2+ 0.5-

Reserve Bank of India.

Govt. of India.
Indian Bank's Association.
United Forum of Bank Employees.
All of the above.
The Correct Answer is :
Reserve Bank of India.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
43. The Guidelines for KYC principle relate :
Marks:

2+ 0.5-

to identification of depositors.
to identification of person who enters in Bank/branch premises.
to identification of person roaming around the bank.
All of the above.
None of the above
The Correct Answer is :
to identification of depositors.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
44. The guidelines are issued the provision of :
Marks: 2+ 0.5Section 35 (A) of the Banking Regulation Act, 1949.
Section 35 (A) of the Reserve Bank of India Act, 1934.
Section 3 of Defence of India Rules.
Section 35 of the Negotiable Instruments Act, 1881.
None of the above.
The Correct Answer is :
Section 35 (A) of the Banking Regulation Act,
1949.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
45. Banking is defined under :
Marks: 2+ 0.5Negotiable Instruments Act, 1881.
Banking Regulation Act, 1949.

Reserve Bank of India Act, 1935.

Nowhere, it is defined.
(a) and (b).
The Correct Answer is :
Banking Regulation Act, 1949.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
46. The Guidelines of the KYC principle are to put in place, the systems and
procedures by the banks :
Marks: 2+ 0.5to help to control financial frauds.
to help to control financial frauds.
to scrutinize/monitoring of large value.
All of the above
None of the above.
The Correct Answer is :
to scrutinize/monitoring of large value.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
47. The important objectives of the know-your-customer (KYC) framework
are to :
Marks: 2+ 0.5prevent the banks from being used, intentionally or unintentionally, by
criminal elements for money laundering activities.
Enable banks to know/understand their customers and their financial
dealing in better way, which in turn help them to manage their risks
prudently.
(a) and (b).
restrict entry of general public for banking services.
None of the above.
The Correct Answer is :
(a) and (b).
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
48. KYC guidelines have been revised by Reserve Bank of India on the basis
of recommendations made by :
Marks: 2+ 0.5Rangrajan Committee.
Financial Action Task Force (FATF) on Anti Money laundering (AML)
standards and on Combating Financing of Terrorism (CFT).
Narasimham Committee.
Gupta Committee.
Narayanmurthy Committee.
The Correct Answer is :
Financial Action Task Force (FATF) on Anti Money
laundering (AML) standards and on Combating Financing of Terrorism
(CFT).
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
49. Banks are required to keep a close watch of cash transactions, both
deposits and withdrawals, of Rs. 10 lakh and above in deposit, cash credit of

overdraft accounts and :

Marks:

2+ 0.5-

keep record of these large cash transactions in a separate register.

report these transactions to Income Tax Authorities.
report such transactions to Reserve bank of India in DSB returns.
All of the above.
None of the above.
The Correct Answer is :
keep record of these large cash transactions in a
separate register.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
50. Which of the followings are deemed as suspicious
activities/transactions to be monitored by the bank staff under KYC norms ?
Marks:

2+ 0.5-

Same fund being moved repeatedly among several accounts.

Multiple deposits of Bankers cheques, drafts etc. of third parties.
Maintaining a low or overdrawn balance with high activities.
All of the above.
[a) and (b).
The Correct Answer is:
[a) and (b). activities.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
51. It is practice among he banks to insist upon for introduction in respect
of all types of deposit accounts (viz, savings/current/fixed deposits etc.)
because :
Marks: 2+ 0.5it is the best way to check frauds.
it is required under directives of Reserve Bank of India to avoid benami
transactions.
it is required under the directives of CBDT.
All of the above.
None of the above.
The Correct Answer is :
it is required under directives of Reserve Bank of
India to avoid benami transactions.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
52. A letter of thanks is sent to introducer :
Marks: 2+ 0.5for confirmation of his action and indirectly providing him a chance to
inform the bank if his signature has been forged.
for confirmation of his action and indirectly providing him a chance to
inform the bank if his signature has been forged.
so that he can introduce more and more accounts/customers to the bank.
All of the above.
None of the above.
The Correct Answer is :
for confirmation of his action and indirectly
providing him a chance to inform the bank if his signature has been forged.
You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
53. An introducer is not liable for the act of the customer whose account is
so introduced unless :
Marks: 2+ 0.5the introducer is a party to the conspiracy of fraud.
the customer has done criminal act.
All of the above.
None of the above.
The Correct Answer is the customer has done criminal act
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
54. Your branch have to open a Current Account for M/s Bajaj Auto Limited,
a well known company. The company will be introduced by :
Marks: 2+ 0.5a confirmed staff member having at least three years service.
acurrent account holder.
a respectable person of the area.
any of (a), (b), (c).
introduction is not necessary in the case of a company.
The Correct Answer is :
introduction is not necessary in the case of a
company.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
55. Which of the followings are accepted as a means of introduction of a
saving/time deposits account ?
Marks: 2+ 0.5A passport.
Identify card issued by a Government Department, the municipality,
educational institution of defence services.
Postal identification card.
All of the above.
None of the above.
The Correct Answer is :
Postal identification card.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
56. Introduction is invariably insisted upon by banks for opening a Current
Account because :
Marks: 2+ 0.5statutory protection under Section 131 the N.I Act, 1881 will not be
available to the collecting banker if the account is not introduced one.
it is required under local laws.
it is required under Banking Regulation Act, 1949.
it is necessary under the provision of RBI Act, 1934.
None of the above.
The Correct Answer is :
it is required under Banking Regulation Act, 1949.
You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
57. While opening new accounts, banks generally insist for cash as initial
deposit because :
Marks: 2+ 0.5it is a banking practice.
It is safe.
it is required under Section 42 of the Reserve Bank of India Act,1935.
if a cheque or draft is accepted as initial deposit for opening of an
account, protection under Section 131 of the Negotiable Instruments Act,
1881 may not be available.
None of the above.
The Correct Answer is :
if a cheque or draft is accepted as initial deposit
for opening of an account, protection under Section 131 of the Negotiable
Instruments Act, 1881 may not be available.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
58. Interest free deposits can be accepted by the banks only under the head
:
Marks: 2+ 0.5Savings Bank Accounts
Current Accounts
Term of Time Deposits.
All of these
None of these
The Correct Answer is :
Current Accounts
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
59. Current accounts are mostly held by :
Marks:

2+ 0.5-

Current accounts are mostly held by :

Professionals
Term of Time Deposits.
All of these
None of these
The Correct Answer is :
All of these
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
60. Which of the following statements in regard to rate of interest on
deposit is correct ?
Marks: 2+ 0.5Rate of interest on savings accounts are prescribed by Reserve Bank of
India.
Banks are free to offer interest rates on deposits any maturity above 15
days.
Banks are free to offer a fixed rate or a floating rate on term deposits.
All of the above.
None of the above

The Correct Answer is :

All of the above.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
61. For whom you would not open a current account ?

Marks:

2+ 0.5-

An illiterate person.
A lady.
A physically handicapped person.
A minor.
All of the above.
The Correct Answer is :
A minor.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
62. What is the minimum balance required to be maintained in a current
account ?
Marks: 2+ 0.5Rs. 5000/- irrespective of the area of operation.
Rs. 5000/- in computerize branches and Rs. 2000/- in non-computerised
branches.
Rs. 1000/- in urban and metropolian areas and Rs. 500/- in all other
areas.
As may be fixed by each bank.
None of the above.
The Correct Answer is :
Rs. 1000/- in urban and metropolian areas and
Rs. 500/- in all other areas.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
63. Current deposits fall under :
Marks: 2+ 0.5Time Liability
Demand Liability
Contingent Liability
All of these
None of the above
The Correct Answer is :
Demand Liability
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
64. A current account attracts interest at the rate of :
8 percent p.a.
2 percent p.a.
as may be fixed by each bank
All of these
No interest is payable.
The Correct Answer is :
No interest is payable.
You did not answer the question.

Marks:

2+ 0.5-

Explanation :
undefined
Module : Module B
Chapter : Chapter1
65. Interest is not payable as the balances held in current accounts except :
Marks:

2+ 0.5-

Current accounts of Regional Rural Banks.

Balances lying in the account of deceased individual depositor or that of a
sole proprietorship firm
Both (a) and (b)
None of the above
Any one of (a) and (b)
The Correct Answer is :
Both (a) and (b)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
66. Saving bank accounts are generally opened by :
Marks: 2+ 0.5individual
firms
companies
association of persons
All of these
The Correct Answer is :
individual
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
67. Would you open a savings bank account for L
Partnership concerns
Political parties
Proprietorship firms
All of these
None of the above.
The Correct Answer is :
All of these
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
68. Savings accounts may be opened for :

Marks:

Marks:

2+ 0.5-

2+ 0.5-

Institutions, other than those specially prohibited under rule 5 of IBA

code for Banking practice, whose entire income is exempt from the payment
of income tax under the Income Tax Act, 1961.
Development of Women and Children in Rural Areas (DWCRA).
Companies which have been licensed by central government under
Section 25 of the Companies Act, not be add to their names the word
'Limited' or private limited.
None of the above
All of the above
The Correct Answer is :
Companies which have been licensed by central
government under Section 25 of the Companies Act, not be add to their
names the word 'Limited' or private limited.

You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
69. Which of the following organisation is prohibited by RBI from opening a
savings account ?
Marks: 2+ 0.5Any trading or business concern, irrespective of their constitution.
Municipal Corporation or Municipal Committee and Metropolitian
Development Authority.
State Housing Board, State/District Level Housing Co-operative Societies,
Water and Severage/Drainage Boards.
All of the above
(b) and (c)
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
70. As per the directives of IBA, joint accounts, where both persons are
illiterate :
Marks: 2+ 0.5cannot be opened.
can be opened only if operations are jointly by both of them.
can be opened if operation are by cheque book.
may be opened with the condition that they should call on the bank in
person for cash withdrawals.
None of the above
The Correct Answer is :
may be opened with the condition that they
should call on the bank in person for cash withdrawals.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
71. In a savings account of illiterate person, withdrawals are followed on
the strength of :
Marks: 2+ 0.5Thumb impression
Photograph
Signature
(a) and (b)
None of the above
The Correct Answer is :
(a) and (b)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
72. The of withdrawals in a saving account are allowed to the extent of :
Marks:

2+ 0.5-

50 in a half year
100 in a half year
150 in a year
10 per week
None of the above

The Correct Answer is :

50 in a half year
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
73. Effective from 01.03.2003, interest on savings account is paid at the
rate of :
Marks: 2+ 0.53.5 percent per annum
5 percent per annum
4 percent per annum
6 percent per annum
None o the above
The Correct Answer is :
3.5 percent per annum
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
74. Which statement is correct in respect of savings accounts ?

Marks:

2+

0.5-

Cheques endorsed to the account holder are not to be collected.

Cheques endorsed to the account holder can be collected if the account is
properly introduced.
Cheques endorsed are collected without any reservation.
All of the above
None of the above
The Correct Answer is :
Cheques endorsed to the account holder are not
to be collected.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
75. In savings account, interest is paid to the customer's account on :
Marks:

2+ 0.5-

weekly rests
monthly rests
yearly rests
half yearly rests
as per the wish of bank
The Correct Answer is :
half yearly rests
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
76. In savings account, interest is allowed on the minimum balance in the
account :
Marks: 2+ 0.5as on last of every month.
as on last working day of each month.
between 10th and last day of the each month.
first working day of the month.
None of the above.
The Correct Answer is :
between 10th and last day of the each month.

You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
77. 'Notice deposit' means :
Marks:

2+ 0.5-

the deposit withdrawable at the will of the depositor.

term deposit for a specific period but withdrawable on giving at least one
complete banking day's notice.
deposit repayable at notice.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
78. Time deposit bearing interest should be accepted at least for :
Marks: 2+
0.5-

46 Days
one month
15 days (7 days in the case of the whole sale deposit of Rs. 15 lac and
above)
120 months
31 days
The Correct Answer is :
15 days (7 days in the case of the whole sale
deposit of Rs. 15 lac and above)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
79. A time deposit account can normally be opened for a maximum period of
:
Marks: 2+ 0.512 months
10 years
10 years
60 months
63 months
The Correct Answer is :
10 years
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
80. In terms of Rule 14 of IBA Code for Banking Practice, banks may accept
time deposit for more than 10 years :
Marks: 2+ 0.5in terms of orders of competent courts.
in the case of minors where interest of minors are involved provided
bank's convinced that it is necessary to do so.
in their judgement based on asset liability management policies.
All of the above
None of the above
The Correct Answer is :
All of the above

You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
81. Interest of time deposits may be paid, credited, transferred or
reinvested with frequency not less than the :
Marks: 2+ 0.5quarterly rests
monthly rests
half yearly rests
yearly rests
None of these
The Correct Answer is :
quarterly rests
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
82. A savings account is treated as a dormant account if there is no
operation in the account for the last years.
Marks: 2+ 0.5one
three
two
five
None of these
The Correct Answer is :
one
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
83. A savings account transferred to inoperative accounts if there is not
operation in the account for the last :
Marks: 2+ 0.52 years
3 years
4 years
5 years
None of these
The Correct Answer is :
4 years
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
84. Balance is savings bank account is payable :
at notice
on demand
after lapse of 24 days
All of the above
None of the above
The Correct Answer is :
on demand
You did not answer the question.
Explanation :
undefined

Marks:

2+ 0.5-

Module : Module B
Chapter : Chapter1
85. A withdrawal slip is a :

Marks:

2+ 0.5-

Cheque
Bill of Exchange
Promissory Note
All of these
None of the above
The Correct Answer is :
Promissory Note
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
86. A payment from an inoperative account is passed by :

Marks:

2+ 0.5-

any two officers jointly.

manager only.
manager and an officer jointly.
officer only.
None of the above
The Correct Answer is :
manager and an officer jointly.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
87. Fixed deposit receipt is :
Marks: 2+ 0.5non-transferable.
transferable.
Negotiable Instruments.
All of these
None of the above
The Correct Answer is :
non-transferable.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
88. Fixed deposit receipt is :
Marks: 2+ 0.5Negotiable Instrument
Quasi-negotiable Instrument
Non-negotiable Instrument
Negotiable subject to certain conditions
None of the above
The Correct Answer is :
Non-negotiable Instrument
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
89. A fixed deposit is maturing for payment on Sunday. It shall be deemed
to be payable on :
Marks: 2+ 0.5same day
succeeding day

preceding day
only day after the maturity
None of these
The Correct Answer is :
succeeding day
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
90. Requests for deletion of name/names from a fixed deposit :

Marks:

2+

0.5-

should be signed by all the depositors.

should be in writing
at least one of them should continue to be depositor in FDR.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
91. A demand draft was reported lost and therefore, duplicate was issued
against usual indemnity etc. Now the original as well as the duplicate drafts
are presented through clearing by two different banks bearing usual
clearing stamps. As a department officer, how would you handle the
situation ?
Marks: 2+ 0.5Both the drafts should be paid.
Original should be paid and duplicate has to return unpaid with the
remark original since paid.
The original should be returned with the remarks 'Draft reported lost will
pay on collecting bank's guarantee' and if it is again presented bearing
collecting bank's guarantee for disbursement, the same should be paid by
invocation of indemnity.
Both should be returned.
None of the above
The Correct Answer is :
The original should be returned with the remarks
'Draft reported lost will pay on collecting bank's guarantee' and if it is again
presented bearing collecting bank's guarantee for disbursement, the same
should be paid by invocation of indemnity.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
92. For effecting remittance by means of a Mail Transfer, it is necessary,
that :
Marks: 2+ 0.5the remitter should be an account holder of the remitting bank.
beneficiary should be an account holder of the remitting bank.
Both of them should be account holders.
Any of (a) and (b)
None of the above
The Correct Answer is :
beneficiary should be an account holder of the
remitting bank.
You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
93. Mail Transfer is a :

Marks:

2+ 0.5-

negotiable instrument
not transferable instrument
transferable instrument
(a) and (c
None of the above
The Correct Answer is :
not transferable instrument
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
94. Which is the correct statement in respect of Mail Transfer ?

Marks:

2+

0.5-

Payment can not be stopped once the Mail Transfer advice is dispatched,
by the issuing branch.
Payment can not be stopped, at all.
Payment can be stopped provided it is not credited to the payee's
account.
Payment can be stopped any time before the payee/beneficiary with
draws the money from his account.
None of the above
The Correct Answer is :
Payment can be stopped provided it is not
credited to the payee's account.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
95. Duplicate of a Mail Transfer advice lost in transit may be issued upon
executing :
Marks: 2+ 0.5an indemnity
by the beneficiary
by both of them
no indemnity required
None of the
The Correct Answer is :
no indemnity required
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
96. Telegraphic Transfer receipt is :
Marks: 2+ 0.5a negotiable instrument
not a negotiable instrument
a bearer instrument
a quasi negotiable instrement
a quasi negotiable instrement
The Correct Answer is :
not a negotiable instrument
You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
97. Telegraphic Transfer can be effected by :

Marks:

2+ 0.5-

a current account holder

a savings bank account holder
any person whether having an account or not
(a) and (b)
None of the above
The Correct Answer is :
any person whether having an account or not
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
98. In case of Telegraphic Transfer :
Marks: 2+ 0.5the remitter should have account with remitting branch.
the beneficiary should have account with paying branch.
(a) and (b)
the account is not necessary.
None of the above
The Correct Answer is :
the account is not necessary.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
99. In case the check cipher/code/symbol on TT is not tallying :
0.5

TT can not be paid.

TT can not be paid if beneficiary is known to the paying bank.
TT can be paid if amount involved is small.
TT can be paid if beneficiary is account holder of paying branch.
None of the above
The Correct Answer is :
TT can not be paid.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
100. A Telegraphic Transfer can be paid :
Marks: 2+ 0.5in cash, across the counter after proper identification.
to the credit of beneficiary's account.
through special clearing
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
101. A Telegraphic Transfer :
Marks: 2+ 0.5-

Marks:

2+

can be presented through special clearing.

can be presented through ordinary clearing.
can not be presented through clearing.
In case the collecting banker has confirmed the endorsement on TT
receipt, it can be presented through clearing.
None of the above
The Correct Answer is :
can be presented through special clearing.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
102. A committee of Indian Bank's Association, which has examined the
procedure for issue and payment of demand drafts by banks was headed
by :
Marks: 2+ 0.5Deshpande Ps
M Narasimham
Janki Raman S
Raghunath Singh
None of these3
The Correct Answer is :
Deshpande Ps
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
103. A telegraphic transfer has been received in an account of a deceased
person, what you will do as a 'department officer' ?
Marks: 2+ 0.5Return the telegraphic transfer with remarks account holder deceased.
Credit the TT to the account.
Credit the TT after getting confirmation from legal heirs of the a/c holder.
Either (a) or (c).
None of the above
The Correct Answer is :
Credit the TT to the account.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
104. What is the relationship between customer and bank, in case of TT ?
Marks:

2+ 0.5-

Principal and Agent

Trustee and Beneficiary
Customer and BankBailor and Bailee
Customer and Bank
None of the above
The Correct Answer is :
Principal and Agent
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
105. The authenticity of a telegraphic transfer is verified from :
0.5-

signature

Marks:

2+

postal stamp
serial number
check cipher/code
None of these
The Correct Answer is :
check cipher/code
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
106. How many times, a hirer of the locker can operate upon ?
Once in a week.
Once in a day.
50 times in a year.
No restriction.
None of these
The Correct Answer is :
No restriction.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
107. On the contents of the locker, the barker has :
right of set-off
particular lien
general lien
All of the above
None of the above
The Correct Answer is :
None of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
108. When a hirer surrenders a locker :
Marks:

Marks:

Marks:

2+ 0.5-

2+ 0.5-

2+ 0.5-

it should not be allotted to any other person.

after interchanging the lock of the locker with any empty locker, it can be
allotted to any new hirer.
the surrendered locker should not allotted to new hirer upto 3 years
Any of the above
None of the above
The Correct Answer is :
after interchanging the lock of the locker with any
empty locker, it can be allotted to any new hirer.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
109. Which of the following keys are used at the time of opening the
locker ?
Marks: 1+ 0.25Master key with the bank.
Customer's key.
Any one of the above.
Both (a) and (b)
None of the above

The Correct Answer is :

Both (a) and (b)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
110. At the time of broken open the locker, the presence of the following is
a must :
Marks: 2+ 0.5Locker hirer or his legal heirs.
Branch officials.
Two independent witnesses.
All of these
None of the above
The Correct Answer is :
All of these
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
111. In case of taking lockers on hire, hirers are to deposit a sum as
security depositing with the bank to cover the annual rent, in fixed deposit
of :
Marks: 2+ 0.5Rs. 5,000/Rs. 75,000/Rs. 10,000/Depending upon the rent of locker and annual interest on the deposit
None of the above
The Correct Answer is :
Depending upon the rent of locker and annual
interest on the deposit
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
112. The interest accruing to above deposits would be used as :
Marks:
0.5-

rent for the locker

security for the locker.
Both the above
Any one of (a) and (b)
None of the above
The Correct Answer is :
rent for the locker
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
113. The locker of Mr. Ravi has been sealed by Income Tax Officials, the
rent will be recovered from :
Marks: 2+ 0.5Income Tax Officer.
No recovery is needed.
Both of them.
From the locker holder and on his refusal Income Tax Officer.
None of the above
The Correct Answer is :
Both of them.

2+

You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
114. While allowing a party to operate the locker, his identity is established
by :
Marks: 2+ 0.5signature
photo
password
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
115. The nomination facilities in banks were made effective from :
Marks:

2+ 0.5-

29.3.1985
15.04.1980
26.01.1987
d29.3.1986
None of the above
The Correct Answer is :
29.3.1985
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
116. Which of the following statements is correct in regard to nomination
facility for their depositors ?
Marks: 2+ 0.5Nomination facility is available to existing as well as new depositors.
Nomination can be made in favour of one person only.
Nomination facility is available for accounts standing in the name of
individuals in the single name or joint names.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
117. As per Nomination Rules, nomination in favour of non-residents :
Marks:

2+ 0.5-

is not permitted at all.

is permitted subject to prior approval of Reserve Bank of India.
is permissible authorised dealers may credit the amount standing to the
credit of a deceased person to the non-resident (ordinary) account without
the prior permission of the Reserve Bank of India.
Either of (a) and (b)
None of the above

The Correct Answer is :

is permissible authorised dealers may credit the
amount standing to the credit of a deceased person to the non-resident
(ordinary) account without the prior permission of the Reserve Bank of
India.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
118. Section 45ZE of the Banking Regulation Act, 1949 provides for :
Marks:

2+ 0.5-

hiring of lockers in joint names to be operated by formers or survivors.

nomination facility to the hirers of lockers.
nomination facility to the depositors.
All of the above
(b) and (c)
The Correct Answer is :
nomination facility to the hirers of lockers.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
119. The nomination facility in respect of safe custody is available :
Marks:

2+ 0.5-

only when the customer is an individual.

in respect of articles deposited by tow or more individuals.
in the case of articles deposited by individuals, firms and companies.
All of the above
None of the above
The Correct Answer is :
only when the customer is an individual.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
120. In joint accounts, the nomination :
Marks: 1+ 0.25can be made by all account holders in favour of different persons.
can be made in favour of one person for deposit accounts.
can not be availed.
All of the above
None of the above
The Correct Answer is :
can be made in favour of one person for deposit
accounts.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
121. A nomination can be accepted in favour of :
Marks: 2+ 0.5a firm
a company
a minor
All of the above
(a) and (b)
The Correct Answer is :

a minor

You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
122. Nomination facilities were extended to banks on the recommendations
of :
Marks: 2+ 0.5Talwar Committee
Pillai Committee
Tandon Committee
Tandon Committee
None of these
The Correct Answer is :
Pillai Committee
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
123. Nomination facilities are available
Marks:

2+ 0.5-

in deposit accounts.
on safe deposit lockers.
on articles deposited for safe custody.
in all the above cases.
None of the above
The Correct Answer is :
in all the above cases.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
124. Nomination facilities relating to deposit accounts are available in :
Marks:

2+ 0.5-

individual accounts in single names.

individual accounts in joint name.
sole proprietorship accounts.
All of the above
(a) and (b) above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
125. A minor of 16 years age has opened his individual savings account in
his single name is his account, nomination facility is :
Marks: 2+ 0.5not available.
available as in other cases but it is to be exercised by the natural
guardian of the minor.
available only if minor is at least 12 years old.
(b) and (c)
None of the above
The Correct Answer is :
available as in other cases but it is to be exercised
by the natural guardian of the minor.
You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
126. Nomination once made, can be changed :

Marks:

1+ 0.25-

only once.
only twice.
any number of times.
can not be changed, as it is irrevocable.
None of the above
The Correct Answer is :
any number of times.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
127. The survivor of a joint deposit account intends to change nomination.
It should :
Marks: 1+ 0.25not be allowed as any change requires joint mandate.
be allowed as survivor can cancel, change or even exercise fresh
nomination.
not be allowed as only cancellation of nomination can be done by the
survivor.
matter should be referred to bank's lawyer of his opinion.
None of the above
The Correct Answer is :
be allowed as survivor can cancel, change or even
exercise fresh nomination.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
128. A locker is let out to more than two persons. In this case :
Marks: 2+
0.5-

there can be only one nominee.

there can be more than one nominee. In no case, the number of nominees
should not be more than number of hirers of locker.
nomination not allowed.
n there can be many as nominee without any retriction.
None of the above.
The Correct Answer is :
there can be more than one nominee. In no case,
the number of nominees should not be more than number of hirers of
locker.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
129. In terms of recent guidelines of Reserve Bank of India, where
nomination has been not been done, the bank can make payment to legal
heirs of the deceased depositor without insisting on production of
succession certificate, upto :
Marks: 2+ 0.5Rs. 25,000/Rs. 50,000/Rs. 1,00,000

any amount
None of these
The Correct Answer is :
any amount
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
130. Debit cards :
Marks: 2+ 0.5are plastic cards embedded with electromagnetic identification.
are issued by banks to its customers who could use them to pay for their
purchases or services at specified points of sale terminals.
facilitate the customers to effect the transactions on their accounts
remotely.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
131. Smart card :
Marks: 2+ 0.5has an integrated circuit with micro processor chip embedded in it so that
it could perform calculations, maintain records and act as electronic purse.
has built in facility for protection against fraudulent operations.
can either be rechargeable or exchangeable.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
132. Choose the correct statement, as regard to debit/smart card :
Marks:

2+ 0.5-

The relationship between the card issuing bank and card holder is
contractual and is subject to certain terms and conditions.
As per the RBI guidelines, banks can introduce smart/debit cards with
issued by Reserve Bank of India.
Banks are not permitted to issue debit/smart cards in tie up with any
non-banking entities.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
133. Which of the following is a correct statement about smart/debit
cards ?
Marks: 2+ 0.5Banks are generally extending this facility to savings/current account
fixed deposit account holders with built in liquidity features.

Smart/Debit card facility is not extended to cash credit and loan account
holders.
(a) and (b)
Debit card can be issued to PMRY beneficiaries.
None of the above
The Correct Answer is :
(a) and (b)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
134. Credit cards are cards made of plastic material as such they are also
known as :
Marks: 2+ 0.5plastic cards
card money
plastic cards full of money
All of the above
None of the above
The Correct Answer is :
plastic cards
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
135. Credit cards are of standard size and thickness and are embossed with
the following details :
Marks: 1+ 0.25Name of card holder
Card number
Validity date etc.
All of these
None of these
The Correct Answer is :
Card number
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
136. The credit cards are usually valid for :

Marks:

2+ 0.5-

one or two years

five years
ten years
No time limit
None of these
The Correct Answer is :
one or two years
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
137. The holder of the card can purchase goods and avail services, upto a
specified limit, from :
Marks: 2+ 0.5shops, department stores, hotels, restaurants
railway stations, airlines etc.
emporiums

All of the above

None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
138. What are the benefits of credit card for its holder ?

Marks:

2+ 0.5-

Card holder is relieved of the risk/botheration/tension of carrying cash

while staying in hotels, dinning in restaurants, shopping, buying air or rail
tickets et0
Card holder can draw money from any branch of the issuing bank.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
139. What are the advantage of credit cards to the member
establishments ?
Marks: 2+ 0.5Payment is guaranteed by the bank.
The member establishment get immediate reimbursement from the bank
as per the charge slips less discount as agreed with member establishment
whether the card holder has balance in his account or not.
It estimates the risk of cash handling.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
140. Which of the following statements is correct in regard to credit card ?
Marks:

2+ 0.5-

Credit cards are put into an imprinter machine and the information on
card is recorded on an invoice or other document, known as 'charge slip'.
The name and emblem of card issuing bank are server printed on the
card.
The credit card bears a specimen of the card holder's signature and in
some cases even his photograph.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
141. Pick the correct statement about credit cards :
Marks: 2+ 0.5Credit cares used in those establishments only which have agreed to
accept them for which the card-issuing bank/institution enters into

agreement with them.

Some banks provide the facility of cash withdrawal through credit cards
from any of their branches and/or ATMs subject to a certain monetary
ceiling per transaction per month.
Credit cards are allowed to be used by the card holder only.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
142. ATM stands for :
Marks: 1+ 0.25Automated Teller Machines
Any time Money
All time Money
All of these
None of these
The Correct Answer is :
Automated Teller Machines
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
143. What are the facilities available to the customers through ATM
Marks:

2+ 0.5-

Cash withdrawal subject to a predetermined limit per day.

Cash deposit.
Balance enquiry.
Details of certain number of transactions.
All of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
144. ATM card is a plastic card which embedded with mini chip. The details
of account holder are available in ATM card; viz, :
Marks: 2+ 0.5Name of account holder
Account number
Validity of card etc.
All of these.
None of the above
The Correct Answer is :
All of these.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
145. ATM cards are issued to a person who maintains any of following
accounts with the bank :
Marks: 2+ 0.5Savings Bank Accounts
Current Accounts

Term Deposits
Loan or Cash Credit Accounts
ny of (a) and (b)
The Correct Answer is :
ny of (a) and (b)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
146. Travellers cheques are :
Marks: 2+ 0.5transferable.
tot transferable.
transferable provided transferee is a hotel, departmental store or a bank.
Any of the above
None of the above
The Correct Answer is :
transferable.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
147. Travellers cheques are payable to :
Marks: 2+ 0.5bearer
order
named payee only
All of the above
None of the above
The Correct Answer is :
order
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
148. Travellers cheques are required to be dated at the time of :

Marks:

0.5-

issue
encashment
Both of these
Any of the above
None of the above
The Correct Answer is :
issue
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
149. Travellers cheques are encashable at :

Marks:

1+ 0.25-

all branches of issuing bank.

merchant establishments such as hotels, shops, stores, airlines etc. by
arrangement.
branches of other banks by arrangement.
All of the above.
None of the above.
The Correct Answer is :
All of the above.
You did not answer the question.

2+

Explanation :
undefined
Module : Module B
Chapter : Chapter1
150. Travellers cheques are valid for a period of :

Marks:

2+ 0.5-

six months
three months
twelve months
No limit
None of these
The Correct Answer is :
No limit
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
151. Which of the following statements are correct in regard to travelers
cheques ?
Marks: 2+ 0.5A travelers cheque can be transferred by mere delivery or by
endorsement plus delivery.
Transfer to traveller's cheque is free from any defects in the title of the
transfree, if the transfer is effected in prescribed manner.
Transfer passes a full legal title.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
152. Gift cheques are cheque which can be gifts in lieu of :
Marks: 1+ 0.25cash
demand draft
mail transfer
All of the above
None of the above
The Correct Answer is :
cash
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
153. Gift cheques are issued to :
Marks:

2+ 0.5-

the customers of the bank.

Any person irrespective of any type of accounts with the bank.
Both customers and non-customers of the bank.
Any one of above
None of the above
The Correct Answer is :
None of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1

154. Gift cheques are generally issued in following denominators :

Marks:

2+ 0.5-

Rs. 11/Rs. 21/Rs. 51/Rs. 101/All of these

The Correct Answer is :
All of these
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
155. A commission on gift cheques are to be collected at the rate :
Marks:

1+ 0.25-

Re. 1/- per Rs. 100.

equivalent to that of demand draft.
rate varies from bank to bank.
no commission for issurance of gift cheques.
None of the above
The Correct Answer is :
no commission for issurance of gift cheques.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
156. Public Provident Fund a/c is opened for :
Marks: 2+ 0.510 years
15 years
20 years
No time limit
None of these
The Correct Answer is :
15 years
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
157. What is the minimum and maximum deposit which can be paid into PPF
a/c during a financial year ?
Marks: 2+ 0.5No restriction of amount.
Minimum Rs. 100/- and maximum Rs. 60,000/- per year.
Minimum Rs. 100/- and no maximum limit.
No minimum limit but maximum amount not to exceed Rs. 60,000/- in a
financial year.
None of the above
The Correct Answer is :
No minimum limit but maximum amount not to
exceed Rs. 60,000/- in a financial year.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
158. Maximum number of deposits in PPF a/c during a financial year are :
Marks:

2+ 0.5-

1
6
12
24
None of these
The Correct Answer is :
12
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
159. On PPF a/c, interest is calculated on monthly basis on :

Marks:

2+ 0.5-

minimum balance between 10th and last day of the month.

minimum balance between 5th and last day of the month.
minimum balance between 1st and last day of the month.
balance as on last day of preceding month.
None of the above
The Correct Answer is :
minimum balance between 5th and last day of the
month.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
160. If there is default in depositing of minimum amount in any financial
year the same an b condoned by :
Marks: 2+ 0.5paying penalty of Rs. 10/- per year of default along with minimum
subscription for each year of default.
paying penalty of Rs. 20/- per year of default.
for the default year interest is not payable.
paying double amount in subsequent year.
None of the above
The Correct Answer is :
paying penalty of Rs. 10/- per year of default
along with minimum subscription for each year of default.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
161. When deposit in PPF account is made through cheque, the date of
deposit will be :
Marks: 2+ 0.5date of lodgement of cheque.
date of realization of cheque.
date of realization of cheque or 3 days lodgement of cheque, which ever
is earlier.
one week after the date of receipt of cheque.
None of the above
The Correct Answer is :
date of realization of cheque.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
162. Withdrawal in PPF account is permitted to the extent of 50% of
amount of credit at the end of year, immediately preceding year in which
the amount is withdrawn.
Marks: 2+ 0.5-

3rd
4rd
5th
6th
Withdrawal is not permitted.
The Correct Answer is :
6th
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
163. Premature closure of PPF a/c requires the permission from :

Marks:

0.5-

Opening Bank
Reserve Bank of India
Govt. of India
All of these
None of these
The Correct Answer is :
Govt. of India
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
164. Banks conduct Government business on behalf of :

Marks:

2+ 0.5-

Central Government
bState Government
Reserve Bank of India
President of India
None of the above
The Correct Answer is :
Reserve Bank of India
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
165. A Government bill is :
Marks: 2+ 0.5a negotiable instrument.
not a negotiable instrument.
a quasi negotiable instrument.
dike a cheque.
None of the above
The Correct Answer is :
not a negotiable instrument.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
166. Payment of term deposit can not be made in cash if the amount
exceeds Rs. 20,000 in terms of provision of :
Marks: 2+ 0.5Income Tax Act
RBI Act
Practice among banks

2+

All of the above

None of the above
The Correct Answer is :
Income Tax Act
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
167. On payment of fixed deposit before maturity, interest is payable at the
rate of :
Marks: 2+ 0.5contracted rate.
1% less than the interest rate applicable for period for which deposit was
remained with bank.
charging of penal interest of 1% differs from bank to bank and also on
the amount of deposit.
All of the above
All of the above
The Correct Answer is :
charging of penal interest of 1% differs from bank
to bank and also on the amount of deposit.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
168. A current account can be treated as document if there is no transaction
in the account for :
Marks: 2+ 0.54 months
6 months
9 months
12 months
None of these
The Correct Answer is :
6 months
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
169. A current account is transferred to inoperative if there is no
transactions in the account for :
Marks: 2+ 0.53 years
2 years
1 year
5 years
None of these
The Correct Answer is :
1 years
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
170. Which of the following privileges, a current account holder enjoys
Marks:

2+ 0.5-

There is no need to maintain cash balances.

Operate the account on as many occasions as required
Pay small charges for all these services.

All of the above

None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
171. Photographs are required from depositors :

Marks:

in all accounts
in loan accounts
in deposit accounts
in fixed deposits
None of these
The Correct Answer is :
in deposit accounts
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
172. Obtention of photographs were suggested by :
Ghosh Committee
Chore Committee
Narsimham Committee
All of these
None of the above
The Correct Answer is :
Ghosh Committee
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
173. Photograph is not required in case of :

Marks:

2+ 0.5-

Marks:

2+ 0.5-

2+ 0.5-

staff account.
fixed Deposit upto Rs. 10,000/savings account without cheque book facility.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
174. Which of the followings need not submit a photograph ?
Pardanshin ladies
Iiliterates
Old Hindu ladies and gents
Minors
None of the above
The Correct Answer is :
Old Hindu ladies and gents
You did not answer the question.
Explanation :
undefined

Marks:

2+ 0.5-

Module : Module B
Chapter : Chapter1
175. Generally cost of photograph is to be borne, by :
Customer
Bank
50% by Banks and 50% by customer
Reserve Bank of India
None of the above
The Correct Answer is :
Customer
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
176. Photographs are not required in respect of :

Marks:

Marks:

2+ 0.5-

2+ 0.5-

Resident account holders

(a) and (c)
Non-Resident account holders
Any of (a) and (c)
None of the above
The Correct Answer is :
None of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
177. Copy of the which documents can be accepted in lieu of a photograph ?
Marks:

2+ 0.5-

Driving Licence
Identity Card
Passport
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
178. While making a payment in cash to a blind person :

Marks:

payment should be witnessed.

Witness should be other than passing official.
Witness is not required.
[a) and (b) above
None of the above
The Correct Answer is :
[a) and (b) above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
179. In RD account maximum amount of instalment could be :
Rs. 100/Rs. 10,000/-

2+ 0.5-

Marks:

2+ 0.5-

No limit
Rs. 5,000/None of these
The Correct Answer is :
No limit
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
180. In case of savings account, the interest can be paid on maximum
balance of :
Marks: 2+ 0.5Rs one lac
Rs. one million
Rs. one billion
No limit
None of these
The Correct Answer is :
No limit
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
181. Bank accepts articles for keeping in safe custody from :

Marks:

2+ 0.5-

customers only
staff members
any person
All of the above
None of the above
The Correct Answer is :
customers only
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
182. While accepting articles for safe custody, the banker-customer
relationship is of :
Marks: 2+ 0.5Bailee and Bailor
Trustee and Beneficiary
Bailor and Bailee
debtor and Creditor
None of the
The Correct Answer is :
Bailee and Bailor
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
183. The packets or boxes, accepted for keeping in safe custody, must bear
the seals of :
Marks: 2+ 0.5Bank
Depositor of the box/packet
Both (a) and (b)
Any of (a) and (b)
None of the above
The Correct Answer is :
Depositor of the box/packet

You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
184. The transaction of keeping articles in safe custody is governed by :
Marks:

1+ 0.25-

Negotiable Instruments Act, 1881.

Banking Regulation Act, 1949.
Indian Contract Act, 1872.
All of the above
None of the above
The Correct Answer is :
Indian Contract Act, 1872.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
185. The key of the sealed box, accepted for keeping in safe custody should
remain with :
Marks: 2+ 0.5the depositor of the box.
the bank.
one key with the depositor and one key with the bank.
Any one of the above
None of the above
The Correct Answer is :
the depositor of the box.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
186. While accepting packets or boxes for safe custody, the bank :
Marks:

1+ 0.25-

does not insist upon the physical verification of the contents.

Insists upon the physical verification of the contents.
Verification depends upon the size of packets or boxes.
Any one of the above
None of the above
The Correct Answer is :
does not insist upon the physical verification of
the contents.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
187. Articles left in safe custody cannot be delivered on the basis of a
succession certificate because :
Marks: 2+ 0.5these are not included in debt and securities as defined under Indian
Succession Act, 1925.
it is not permitted under Negotiable Instrument Act, 1881.
it is not allowed by RBI.
it is not permitted under Banking Regulation Act, 1949.
None of the above
The Correct Answer is :
these are not included in debt and securities as
defined under Indian Succession Act, 1925.

You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
188. When the safe custody receipt is lost by the party :

Marks:

2+ 0.5-

the securities will be forfeited by the bank.

the securities will be delivered back to the party as per court's order.
the duplicate receipt will be issued at the request of the party.
(b) and (c)
None of the above
The Correct Answer is :
the duplicate receipt will be issued at the request
of the party.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
189. Articles left by deceased in safe custody can be delivered after
obtaining :
Marks: 2+ 0.5succession certificate
probate
letter of administration
probate and letter of administration
None of the above
The Correct Answer is :
probate and letter of administration
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
190. Banks offer lockers on hire :
Marks: 2+ 0.5only to its customers.
to any person.
only to those persons who give required amount of deposit.
All of the above
None of the above
The Correct Answer is :
to any person.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
191. The rent on locker is charged by the banks :
Marks: 2+ 0.5half yearly
yearly
in advance of 12 months
Any of the above
none of the above
The Correct Answer is :
in advance of 12 months
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1

192. A locker can be allotted to :

Marks:

2+ 0.5-

a minor
an illiterate person
clubs, societies and associations
(b) and (c)
None of the above
The Correct Answer is :
(b) and (c)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
193. A hirer of locker operates it, in the presence of :

Marks:

2+ 0.5-

Custodian
Branch Manger
There should be no person present other than the locker holder when the
locker is being operated.
(a) and (b)
None of the above
The Correct Answer is :
There should be no person present other than the
locker holder when the locker is being operated.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
194. In case, the key of locker is lost, who has to bear the cost of locks ?
Marks:

2+ 0.5-

The hirer.
The bank.
Both (a) and (b)
Any of (a) and (b)
None of the above
The Correct Answer is :
The hirer.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
195. When hirer has lost the key of the locker :

Marks:

1+ 0.25-

the locker will be broken open.

the hirer will be allotted a new locker.
the hirer will be provided the duplicate key for opening the locker.
(b) and (c) above
None of the above
The Correct Answer is :
the locker will be broken open.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
196. Life certificate can be issued by :
Marks: 2+ 0.5a Gazetted officer
an officer of RBI

an officer of bank which pays the pension

Any one of above
None of above
The Correct Answer is :
Any one of above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
197. For getting pension from a bank, branch selection is made by :
Marks:

1+ 0.25-

treasury officer
pensioner
employee
Any one of above
Government
The Correct Answer is :
pensioner
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
198. Pension account can be transferred from one bank to another bank :
Marks:

2+ 0.5-

any number of times.

once in a financial year.
Three times in the life time of pensioner.
once in calender year
None of the above
The Correct Answer is :
once in a financial year.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
199. Non-employment declaration is obtained from :
retired class-1 officers of central services.
retired officers of All India Services.
(a) and (b)
all retired officers
None of the above
The Correct Answer is :
(a) and (b)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
200. If a pensioner dies, pension is payable:

Marks:

Marks:

2+ 0.5-

2+ 0.5-

till the last day of the month in which he died.

till the date or death if no family pension is applicable.
till last day of preceding month.
till October of the year in which, he died.
None of the above
The Correct Answer is :
till the date or death if no family pension is
applicable.

You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
201. Non-remarriage certificate is required to be furnished ?

Marks:

2+ 0.5-

in November every year.

in beginning and a declaration that she will inform the bank if she gets
married again.
in April every year.
in May and November every year.
None of the above
The Correct Answer is :
in beginning and a declaration that she will
inform the bank if she gets married again.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
202. Pension is required to be credited normally on the last working day of
the month but for the month of
Marks: 2+ 0.5October it is credited on 1st November.
March it is credited on 1st April.
December it is credited on 1st January.
All of the above.
None of the above.
The Correct Answer is :
March it is credited on 1st April.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
203. In case of commutation of pension, basic pension gets reduced from :
Marks:

2+ 0.5-

the date of application for commutation.

the date of sanction of commutation.
the date on which commutation value is credited to pensioner's account
first of the month following the month in which commutation is
sanctioned.
None of the above
The Correct Answer is :
the date on which commutation value is credited
to pensioner's account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
204. When commutation is allowed, D.A. is payable on :
Marks: 2+ 0.5original basic pension.
reduced basic pension.
either (a) or (b) as per the instruction of sanctioning authority.
D.A relief of not payable on basic pension.
None of the above
The Correct Answer is :
original basic pension.
You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
205. When a part of basic pension is commuted, the commuted portion is
restored after :
Marks: 2+ 0.515 years from date of retirement.
15 years from date of commutation
10 years from date of commutation
20 years from date of commutation
No provision for restoration of commuted portion.
The Correct Answer is :
15 years from date of commutation
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
206. Currency chest and the money held therein is the property of :
Marks:

2+ 0.5-

the bank which maintains the currency chest.

Government of India.
State Bank of India.
Reserve Bank of India
None of the above
The Correct Answer is :
Reserve Bank of India
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
207. Small coin depot is the property of :
Marks:
Reserve Bank of India.
Government of India.
State Bank of India.
All of these.
None of the above.
The Correct Answer is :
Government of India.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
208. Small coins are supplied by :
Marks: 2+ 0.5Government of India.
Reserve Bank of India.
Government Security Press, Nasik.
State Bank of India.
None of the above
The Correct Answer is :
Government of India.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1

2+ 0.5-

209. As per the directives of RBI, the bank who maintains a currency chest
should make available the chest facilities in an unrestricted manner to :
Marks:

2+ 0.5-

its own branches

all banks, Government deposits., public etc.
its own branches and State Bank of India.
Its own branches and other banks maintaining accounts with them.
None of the above
The Correct Answer is :
all banks, Government deposits., public etc.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
210. The notes in currency chest comprises of :
Marks: 2+ 0.5issuable note
new currency
soiled notes, mutilated notes and two-halves notes
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
211. The daily transactions of currency chest (i.e., both deposit and
withdrawal) irrespective of amount, should invariably be advised by
quickest mode of communication, every day itself to :
Marks: 2+ 0.5Head office of the bank.
Reserve Bank of India. Bombay
Currency chest link branch
All of the above
None of the above
The Correct Answer is :
Currency chest link branch
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
212. The currency chest slip should be signed by :
Marks:

2+ 0.5-

joint custodians of cash (both officials )

any two staff
Branch Manager and currency chest charge
currency chest incharge
None of the above
The Correct Answer is :
None of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
213. The currency chest slip is a copy of transactions recorded in :
Marks:

2+ 0.5-

Chest Book
General Ledger of the branch
Cash Book of the branch
Day Book
None of the above
The Correct Answer is :
Chest Book
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
214. The currency chest slip is a copy of transactions recorded in :
Marks:

2+ 0.5-

Chest Book
General Ledger of the branch
Cash Book of the branch
Day Book
None of the above
The Correct Answer is :
Chest Book
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
215. Charges towards police escorts towards transportation etc. for
remittances effected from one currency chest to another are borne by :
Marks:

2+ 0.5-

Reserve Bank of India

Government of India
Bank maintaining Currency Chest
State bank of India
None of the above
The Correct Answer is :
Reserve Bank of India
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
216. Cash shortage in the currency chest, should be immediately reported,
irrespective of amount to :
Marks: 2+ 0.5Concerned controlling authority
concerned currency officer of the Issue Department of RBI.
Both (a) and (b)
Local Branch of State Bank of India
None of the above
The Correct Answer is :
Both (a) and (b)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
217. The term 'clip system' refers to :
Marks: 2+ 0.5Using clips instead of pins in day to day operators.
Verification of currency notes.
Verification of office furniture items.

(b) and (c)

None of the above
The Correct Answer is :
Verification of currency notes.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
218. The branch must maintain minimum cash balance

Marks:

2+ 0.5-

to increase profitability by optimum utilization of resources.

to eliminate or reduce chances of dacoity, theft or pilferage.
to comply with CRR requirement of RBI
All of the above
None of the above
The Correct Answer is :
to increase profitability by optimum utilization of
resources.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
219. Before breaking a packet, the cashier must :
Marks: 2+ 0.5examine the notes
examine and count the notes
ensure that it bears the stamp of customer
ensure that it bears the signature of receiving cashier.
None of the above
The Correct Answer is :
examine and count the notes
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
220. Reserve Bank of India, in consultation with Government of India has
decided to :
Marks: 2+ 0.5do away with stapling of fresh bank notes packets supplied by the note
presses.
do away with stapling of bank note at branch level.
that currency chest should not accept stapled note packets at the time of
receipt
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
221. When a customer tenders a forged note in cash deposit
Marks: 2+ 0.5it should be immediately destroyed by burning.
it should be impounded after recording the statement of depositor and
should be forwarded to police for investigation.
customer should be detained at the branch till the arrival of police.
(b) and (c)
None of the above

The Correct Answer is :

it should be impounded after recording the
statement of depositor and should be forwarded to police for investigation.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
222. The sweeper of your branch has found a packet of Rs. 100
denomination near the cash counter, as an accountant of the branch what
you do ?
Marks: 2+ 0.5Deposit it with local police station.
Send the packet to head office.
Keep it with cash incharge/chief cashier to be returned to the true owner
on claim.
Deposit in sundry creditors account.
None of the above
The Correct Answer is :
Deposit in sundry creditors account.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
223. Reserve Bank of India under Section 35A of the Banking Regulation
Act, 1949 has issued the following instruction, under clean note policy :
Marks:

2+ 0.5-

Banks to secure note packets with paper/polymer bands.

Banks should sort notes into re-issuable and non-issuables and issue only
clean notes to public.
Banks should forthwith stop writing of any kind on water mark portion of
bank notes.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
224. Under the provision of Reserve Bank of India (Note Refund) Rules,
1989, the exchange o9f mutilated notes is required to be done by the
branches of :
Marks: 2+ 0.5State Bank of India only
Nationalised Bank only
Public Sector Banks
Scheduled Commercial Banks including Regional Rural Banks
None of the above
The Correct Answer is :
Public Sector Banks
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
225. A mutilated note means a note :
Marks: 2+ 0.5of which a portion is missing
which is composed of pieces

Both of above
All of above
None of above
The Correct Answer is :
Both of above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
226. What are the various modes for remittance of funds from one place to
another ?
Marks: 2+ 0.5Demand Draft
Mail Transfer
Telegraphic Transfer
Electronic Fund Transfer
All of these
The Correct Answer is :
All of these
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
227. Which of the following is the quickest mode of fund transfer ?
Marks:

2+ 0.5-

Demand Draft
Telegraphic Transfer
Mail Transfer
All of these
None of these
The Correct Answer is :
Telegraphic Transfer
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
228. Which of the following is a negotiable instrument ?

Marks:

2+ 0.5-

Telegraphic Transfer
Mail Transfer
Demand Draft
All of these
None of these
The Correct Answer is :
Demand Draft
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
229. While making a remittance, the instrument is handed over to the
remitter, in case of :
Marks: 2+ 0.5Telegraphic Transfer
Mail Transfer
Demand Draft
All of these
None of these
The Correct Answer is :

Demand Draft

You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
230. Demand draft can be defined as :

Marks:

2+ 0.5-

an order to pay money, drawn by one branch of a bank upon another

branch of the same bank for a sum of money payable to order on demand.
on order to pay money.
c) an instrument issued by banks to public for value received.
Any one of the above
None of the above
The Correct Answer is :
an order to pay money, drawn by one branch of a
bank upon another branch of the same bank for a sum of money payable to
order on demand.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
231. Demand Drafts are issued payable to order as demand drafts payable
to bearer are :
Marks: 2+ 0.5not issued as they are prohibited under the Reserve Bank of India Act,
1934.
issued at the specific request of important customers.
issued for government departments.
issued by banks, in case of urgency of funds.
None of the above
The Correct Answer is :
not issued as they are prohibited under the
Reserve Bank of India Act, 1934.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
232. The purchaser of a demand draft is called :
Marks: 2+ 0.5Drawer
Drawee
Payee
All of the above
None of the above
The Correct Answer is :
None of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
233. Once a demand draft is issued/purchased :

Marks:

2+ 0.5-

the purchaser has no right to get it cancelled.

the issuing branch may cancel it at the request of the purchaser.
it is open to the purchaser to get the draft cancelled before it is delivered
to the payee.
All of the above
None of the above

The Correct Answer is :

it is open to the purchaser to get the draft
cancelled before it is delivered to the payee.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
234. As per present guidelines of Reserve bank of India, mail transfers,
telegraphic transfers and traveller's cheques for Rs. 50,000/- and above
should be issued by banks :
Marks: 2+ 0.5only by debit to the customer's account or against cheques or other
instruments tendered by the purchaser and not against cash deposit.
against tender of cash.
either against cash or against cheques.
All of the above
None of the above
The Correct Answer is :
only by debit to the customer's account or against
cheques or other instruments tendered by the purchaser and not against
cash deposit.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
235. Under the provision of Income Tax Rules 1962, it is necessary to quote
Permanent Account Number (PAN) or furnish a declaration in Form No. 69
or Form 61 if a person desires to purchase during any one days, bank draft
or pay order or banker's cheque for an amount aggregating to :
Marks: 2+
0.5-

Rs. 10,000/Rs. 25,000/Rs. 50,000/Rs. 1,00,000/None of these

The Correct Answer is :
Rs. 50,000/You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
236. A demand draft can be issued on :

Marks:

2+ 0.5-

any bank in India.

any branch of the issuing bank.
other bank with whom drawing arrangement exist.
(b) and (c)
None of the above
The Correct Answer is :
(b) and (c)
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
237. Payment of a demand draft can be stopped by :
Payee
Holder

Marks:

2+ 0.5-

Purchaser
All of the above
None of the above
The Correct Answer is :
None of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
238. Before canceling a demand draft at the request of purchaser, issuing
branch should ensure that the draft does not bear any evidence of :
Marks:

2+ 0.5-

Negotiation
Utilisation of draft
Delivery of draft
Forgery
None of these
The Correct Answer is :
Negotiation
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
239. Issuing banks do not accept the requests from the purchaser for stop
payment of a demand draft as :
Marks: 2+ 0.5draft represents a commitment of issuing bank in favour of the payee
who can always enforce is payment against the bank.
If the draft has been negotiated to a holder in due course, he has a right
to claim payment from the bank in its capacity as a drawer so long as the
draft does not bear 'NOT NEGOTIABLE' crossing.
Both of the above
Any one of the above
None of the above
The Correct Answer is :
Both of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
240. When original draft is lost, the duplicate thereof, may be issued :
Marks:

2+ 0.5-

at the request of the applicant; i.e,, purchaser of the draft.

at the request of the beneficiary; i.e, payee.
at the request and against the indemnity of purchaser as well as under
taking/indemnity of the payee.
All of the above
None of the above
The Correct Answer is :
at the request and against the indemnity of
purchaser as well as under taking/indemnity of the payee.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
241. A Government bill can be endorsed :
Marks: 1+ 0.25-

any number of times

only once
twice
can not be endorsed
None of the above
The Correct Answer is :
only once
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
242. Banks undertake Government business relating to :

Marks:

2+ 0.5-

Central Govt.
State Govt
Tax Authorities.
Railway and Telecommunication Deptt.
All of these
The Correct Answer is :
All of these
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
243. Which of the following statements, as regard to Government business,
is correct ?
Marks: 2+ 0.5Excise remittances are accepted in challans with four copies.
Government cheques are drawn and signed in lnk.
RBI interest warrants remain valid for eight months from the date of
issuance of warrant.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
244. Government cheques are valid for a period of months after the
month of issue.
Marks: 2+ 0.5one
two
three
six
None of these
The Correct Answer is :
three
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
245. Challan passed by a treasury officer is valid for :
30 days
90 days
3 months

Marks:

2+ 0.5-

10 days
None of these
The Correct Answer is :
10 days
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
246. Transactions relating to Government receipt are recorded in :
Marks:

2+ 0.5-

Cash Book/Day Book

Transfer Book
Receipt Scrolls
All of these
None of these
The Correct Answer is :
Receipt Scrolls
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
247. Whenever paid bills/cheques are sent to the treasury, an
acknowledgement or the treasury officer is obtained in the :

Marks:

2+ 0.5-

Peon Book
Photo copies of cheques/bills, thereof
Transfer Book
Treasury Pass Book
Any of above
The Correct Answer is :
Treasury Pass Book
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
248. In view of Government directories, all central government transaction
involving fraction of a rupee shall be rounding-off to the nearest
Marks: 2+
0.5-

rupee
50 paise
ten rupees
five rupees
None of these
The Correct Answer is :
rupee
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
249. In order to remitting the Government collections to the noda/focal
point branches for ultimate credit to Government account with RBI,CAS,
allows a uniform transit period, for all banks which handle the government
business, not exceeding :
Marks: 2+ 0.57 days
3 to 9 days inclusive of Sunday/holidays
5 days exclusive of Sunday/holidays

one month
None of the above
The Correct Answer is :
one month
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
250. If there is delay beyond one month in transferring the receipts for
credit to Government account where the amount involved is RS. 1.00 crore
and bank, banks handling such transactions are required to pay interest :
Marks:

2+ 0.5-

at Bank rate
at three percent over Bank rate
at the rate of 18%
based on the average of the cut off rates for 91 days auction treasury bills
during the previous quarter.
None of the above
The Correct Answer is :
based on the average of the cut off rates for 91
days auction treasury bills during the previous quarter.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
251. Challans for payment of advance income tax require :
Marks: 2+ 0.5signature of the assessee.
counter signature of respective Income Tax Officer.
counter signature of the commissioner of Income Tax.
Any one of the above
None of the above
The Correct Answer is :
signature of the assessee.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
252. For state government transaction, the remitters have to submit their
challans to the treasury for passing. As an evidence for passing :
Marks: 2+
0.5-

a serial number is given to the challan.

challan is branded with the treasury stamp and date of passing.
the treasury officer plus his initial and date on the challan.
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
253. Pension account is opened in :
Marks: 2+ 0.5single name of pensioner.
joint names of the pensioner and his/her spouse.
joint names of the pensioner and his/her family member.

joint names of the pensioner and any other person.

None of the above.
The Correct Answer is :
single name of pensioner.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
254. A power of attorney executed and authenticated before a Notary Public
in a foreign country :
Marks: 2+ 0.5is valid in India
is not valid in India
can be valid only on its authentication by a Notary in India
can be valid if same is ratified by the competent court of India
None of the above
The Correct Answer is :
is valid in India
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
255. A cheque, which is signed by duly constituted attorney of a customer
can be paid even after the death of:
Marks: 2+ 0.5the agent
the principal
the true owner
All of the above
None of the above
The Correct Answer is :
the agent
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
256. Under this, the relationship between the two is of :

Marks:

2+ 0.5-

the principal and agent

master and servant
debtor and creditor
All of these
None of the above
The Correct Answer is :
the principal and agent
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
257. The power of attorney issued by corporate bodies or any institutions
should be authenticated by :
Marks: 2+ 0.5the Registrar of Companies
a Notary Public or a Magistrate
Chairman of the Company
Company Secretary
None of the above
The Correct Answer is :
a Notary Public or a Magistrate
You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
258. Mandate is a :

Marks:

2+ 0.5-

unstamped letter to the bank

stamped agreement
memorandum of understanding
All of these
None of the above
The Correct Answer is :
unstamped letter to the bank
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
259. Mandate is generally issued :
Marks: 2+ 0.5for a short and temporary period
forever
for the life of the account holder as it is irrevocable in nature.
All of the above
None of the above
The Correct Answer is :
for a short and temporary period
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
260. Letter of mandate should not be accepted from following type of
customers :
Marks: 2+ 0.5Individual and Joint accounts
Proprietory and Partnership firms
Limied companies, cooperative societies etc, as their accounts are
operated by more than one office bearers. In case of difficulty, a power of
attorney should be insisted instead of mandate letter.
All of the above
None of the above
The Correct Answer is :
Limied companies, cooperative societies etc, as
their accounts are operated by more than one office bearers. In case of
difficulty, a power of attorney should be insisted instead of mandate letter.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
261. In case of joint a/cs and partnership firms, letter of mandate must be
signed by :
Marks: 2+ 0.5any one of joint a/c holders/partners.
all the joint account holders/partners.
any tow persons
any number of persons as per the instructions of the account holder
None of the above
The Correct Answer is :
all the joint account holders/partners.
You did not answer the question.

Explanation :
undefined
Module : Module B
Chapter : Chapter1
262. Mr. Dinesh has granted a power of attorney in favor of Mr. Suresh
authorizing him to 'transact business on his behalf and receive and
discharge business debts'. The power so vested upto Mr. Suresh imply the
power to :
Marks: 2+ 0.5accept bills of exchange and promissory notes
endorse bills of exchange and promissory notes
draw or make bills of exchange/promissory notes
All of the above
None of the above
The Correct Answer is :
None of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
263. A mandate in a partnership account can be cancelled by :
any one of the partners
all the partners
majority of partners
mandate once given, can not be cancelled
None of the above
The Correct Answer is :
any one of the partners
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
264. For which of the followings, mandate can not be given ?
Savings Bank accounts
Inoperative accounts
Lockers
All of these
None of these
The Correct Answer is :
None of these
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
265. Power of attorney is to be stamped accordin to :
Indian Stamp Act
Stamp Act of respective state
The Registration Act
All of the above
None of the above
The Correct Answer is :
Stamp Act of respective state
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1

Marks:

Marks:

Marks:

2+ 0.5-

2+ 0.5-

2+ 0.5-

266. A power of attorney can be of following types :

Marks:

A general power of attorney

A restricted/special power of attorney
A pleasure power of attorney
A pleasure power of attorney
None of the above
The Correct Answer is :
A pleasure power of attorney
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1

2+ 0.5-