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Sample Questions for Retail Banking (RTB)

1. Which of the following can be pre-conditions for success of retail banking in India?
(a) Presence of an efficient delivery mechanism
(b) Appropriateness of product and services for the customers
(c) Pricing of the product
(d) all of the above (e)only (b) and (c) above
2. Which of the following products cannot be part of Retail Banking of a bank?
(a) credit cards (b) investments (c) Mortgages (d) Deposits
(e) None of the above
3. Which of the following process models is a modular structure using different process
models for different products offering end to end solutions product-wise. This model
is attractive for mono line product providers or highly specialized products?
(a) Horizontally Organised Model (b) Vertically Organised Model
(c) Predominantly Horizontally Organised Model
(d) Predominantly Vertically Organised Model (e) either (a) or (d) above
4. A study of retail banking in most of PSBs in India reveals that most of the banks
have adopted :
(a)Geography based approach (b) Segmented approach
(c)Classification based approach
(d) holistic models based on corporate objectives (e) either (a) or (c) above
5. In customers expectations of service quality we come across among other factors
the term empathy which means:
(a)coming up to promised level (b)maintaining quality of service
(c) Identification with and understanding of another's situation, feelings, and motives
(d) Acknowledging a person's emotional hardships and providing comfort and
assurance
(e) none of the above
6. In which stage of the product life cycle the customers develop an indifference
towards the product?
(a)Introduction (b) Growth (c) Maturity (d) Decline
(e) either (b) or (c) above
7. As per KYC guidelines of RBI, Banks should ensure that any remittance of funds by
way of demand draft, mail / telegraphic transfer or any other mode and issue of
travelers cheques for value of -------is effected by debit to the customers account or
against cheques and not against cash payment.
(a) Rs .25,000 and above (b) Rs. 50,000 and above
(c) Rs. 1,00,000 and above (d) above Rs. 50,000 (e) above Rs. 1 lakh
8. ----- step in the product development is necessary to avoid product failure.
(a)Idea Generation (b) Idea Screening (c) Concept Testing
(d) Review of Market Performance (d) none of the above
9. Product positioning is not what you do to a product. Positioning is what you do to
the mind of the prospect. That is, you position the product in the mind of the
prospect. Is a statement by:
(a) Louis E. Boone and David L. Kurtz (b) Al Ries and Jack Trout
(c) Carly Fiorina (d) Arindam Chaudhury (e) Bill Clinton
10. If a company has to pay dividend to its shareholders having accounts with bank
branches at various locations within the jurisdiction of a ECS Centre it will be using:
(a)ECS Debit (b) ECS Credit (c) NEFT (d) either (a) or (b)
(e) none of these
11. Full form of IDRBT, which is wholly owned by RBI located at Hyderabad is:
(a)Institute for Daily Research in Basic Technology
(b) Institute for Development of Research in Banking Technology
(c)Institute for Day to Day Research in Banking Technology
(d) Indian Depository for Research in banking Technology
12. Section 45.Z(A) of the Banking Regulation Act,1949 relates to :
(a) Preservation of bank records (b) Nomination in deposit accounts
(c) Nomination in locker accounts
(d) Payment of interest on eligible cash balances by RBI
(e) both (b) and (c) above
13. As per the provisions of the Income Tax Act, 1961 presently income earned by way
of interest , other than in savings account, is exempt from income tax up to an
amount of ---p.a.
(a) Rs.15000 (b) Rs.5,000 (c) Rs. 10,000 (d) Rs. 12,000 . (e) none of these
14. Under Banking Ombudsman scheme, 2006 an appeal against the award of the
Ombudsman can be preferred by the aggrieved party within ________ days.
(a) 15 (b) 30 (c) 45 (d) 60 (e) 10
15. SFMS stands for:
(a) Structured Financial Messaging System
(b) Special Financial Monitoring System
(c) Structured Fast Messaging System
(d) Statistical Financial Monitoring Surveillance
16. A person having income levels between Rs 10 lac to Rs 50 lac will fall in -------
segment.
(a) Super Affluent (b) Mass Affluent (c) Mass Market (d) Super HNW
17. Rohiit is given two options to settle his account with Prdyuman either by paying Rs
80,000 now or Rs 1,00,000 after 4 years. If current rate of interest is 6%, which
option he should accept and what will be his gain if current interest rate continues
for 4 years?
(a) Accept first option and his gain Rs will be 985
(b) Accept first option and his gain will be Rs 1590
(c) Accept second option and his gain will be Rs 2230
(d) Accept second option and his gain will be Rs 790
(e) Accept first option and his gain Rs will be 125
Shri T.S.Subramanian availed housing loan on 25.03.2015 from a bank in
Bangalore for purchase of a ready to move flat in a project by Prestige Group. The
amount of loan availed was Rs 54 lakh at interest rate of 10.50% (the cost of the
flat was Rs 72 lakh). He started paying EMI of Rs 53, 913 w.e.f. 01.04.2015 and
in the FY 2015-16 he ended up paying Rs 646,956 of which Rs 83,915 was towards
repayment of principal and balance amount of Rs 563,041 towards interest. The
property has been occupied by Subramanian family since middle of April, 2015. Mr.
Subramanian has paid a premium of Rs 65,325 on his life policy and purchased
NSCs for Rs 75,000 during the FY 2015-16. Based on the facts given in the above
case study now pick most appropriate options as answer to the questions 18-20
given below:
18. The maximum deduction allowable under Section 80C of Income Tax Act which also
includes repayment of principal of Housing Loan for FY 2016-17 in the given case can
be :
(a)Rs 1,00,000 (b) Rs 1,50,000 (c)Rs 2,00,000 (d) Rs 2,50,000
19. If this were the first property purchased by Mr. Subramanian on or after 01.04.2016,
he could get benefit of additional deduction of Rs--------under section 80EE in
respect of interest if the cost of the flat were Rs 50 lakh and loan availed was not
more than Rs 35 lakh.
(a) 25,000 (b) 50,000 (c) 1,00,000 (d) Rs 75,000
20. As per Income Tax Rules , if the property was not acquired/constructed completed
within 3 years from the end of financial year in which the loan was taken, the
interest benefit iunder section 24 would be reduced from Rs 2 lakhs to Rs
30,000 only. In the budget proposals for 2016-17 this limit of 3 years has been ------
- from FY 2016-17 and onwards.
(a) reduced to 2 years (b) increased to 42 months
(c) increased to 5 years (d) increased to 4 years

Answers to Sample Questions on RTB

Q.No. Ans Q.No. Ans Q.No. Ans Q.No. Ans Q.No. Ans
1 D 2 E 3 A 4 D 5 C
6 D 7 B 8 B 9 D 10 A
11 B 12 B 13 E 14 B 15 A
16 B 17 D 18 B 19 B 20 C