\

A K GUPTA's (IMPACT)· __N S TOOR's

Bankers Training Institute - Institute Of Banking Career & Studies
Office: 75, Block BG-I, Paschim Vihar, New Delhi 110063 Office: SCO 34, Sector 330, Chandigarh 160020
Ph. 01165476949,01125274157,09350476949 Ph: 01722665623,5075449,09317812720
Website: www.bankerstraininginstitute.com Website: www.bankingindiaupdate.com
Email: akg.bti@gmail.com Email: bankingeventsupdate@yahoo.com

CLAS=-I~

RECALLED· QUESTIONS

DELHI: 01165476949,011 25274157,09350476949

CHD: 0172 2665 623, 09317812720

Website: www.bankerstraininginstitute.com

Email: akg.bti@gmail.com

~ Website: www.bankingindiaupdate.com

Email: bankingeventsupdate@yahoo.com
CODE 510~OOl
 KNOW YOUR FACULTY
A. K. GUPTA
Shri A.K. Gupta is a post graduate in commerce, LL.B, CAIIB, PGDip in PersonnelManagementand
IR, PG Dip in Marketing and Management,PG Diploma in Training and Development,Certificate in
Industrial Finance; Ex- Chief Manager, Punjab National Bank with an experienceof more than 28
years as a banker; Experience of more than 12 years in training in the bank's training college
(Principal for 5 years); has helped thousandsof bankers up to scale V in their banking career. He
has been examiner with Indian Institute of Banking & Finance(lIBF, Mumbai) for about 5 years. He
has been teaching Financial Managementand Management Accounting and CommercialLaw in the
classes conducted by the Indian Institute of Banking & Finance. After having left bank as chief
manager, at the age of 48 years, remained associated with number of leading management
institutions at MBAlevel including Mastersof Finance, University of Delhi, International Management
Institute etc teaching subjects like Managementof Banks, FinancialServices,FinancialManagement,
Merchant Banking, Banking Law & Practice;He conducted programmes in the area of Asset Liability
Management and Credit risk management for top management executives in the rank of Chief
General Manager/GeneralManager/DGM/AGMsof SIOBI, Central Bank of India, Dena Bank, Punjab
& Sind Bank; He has been visiting faculty to training colleges of several banks like PNB, NIBSCOM
(joint college of Oriental Bank of Commerce,PSBand J&K Bank), Canara Bank, UCOBank, Bank of
India etc; He 'was lncharqe of EconomicIntelligence Cell in PNBfor 5 years and the job involved
analysisof monetary & credit policiesof RBI, analysis of Govt. policies and Budget;tracking Banking
and Economy related developments; He was Senior Manager incharge of Asset Liability Management
Cell for 2 years; Besidesattending 'severalprogrammes at NIBM and BTCCRBI),he was a student of
University of Manchester for 3 months for an advanced programme in Development Banking;
Number of articles and case studies authored by him have appeared in Economiclimes, Financial
Express, PNB Monthly Review, Vikalpa (Journal of lIM Ahmedabad), The Banker, Indian Banking
Today and Tomorrow, Indian Management (Journal of AlMA). He presented papers at Bank
EconomistsConferences.

He can be contacted at : Tel: 093 50 476949, 011 65 476949, 011 25274157,

www.bankerstraininginstitute.com;
email: akg.bti@gmail.comorimpact_bti@rediffmail.com

N. S. TOOR
Sh. N S Toor : A post graduate in Economicsand Commerce and a certified associateof Indian
Institute of BankersBombay; has worked for Punjab National Bank for more than 25 years including
3 years as Chief(Credit); He handled the industrial credit portfolio in the bank at exceptionally large
branches, middle rung administrative office and corporate office for more than 20 years. He has
been a senior faculty member at the staff training college of PNB.He has contributed more than 80
research papers and articles on a variety of banking subjects to reputed bankingand financial papers
and periodicals. He has authored a number of books for bankers such as Handbook of Banking
Information/ Credit Risk ManagemenCManagement of NPA~ Balance Sheet Analysis/ Model Papers
for Bank Promotions/ Rationals and BankingProblems. He is also the Editor in-Chief of the monthly ..
Journal BANKING EVENTS UPDATEand the Chief Mentor of website www.bankingindiaupdate.com.
He has been in bank training for the last more than 15 years.

He can be contacted at: Tel: 0172 2665 623, 09317812720,

www.bankingindiaupdate.com; email: bankingevents_update@yahoo.com
 A K GUPTA'S BANKERSTRAI~ING INSTIruTE (C 707, Sukhsagar Apratment, Plot No 12, Sector 9, Dwarka, New Delhi _ 110075; Ph 011 65476949, 09350476949)
N S TOOR S INSTITUTE OF BANKING CAREER& STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)

IMPORTANTRECALLEDQUESTIONS
1. Guaranteeis defined in: Indian Contract Act
2. Provisionsrelating to Nominationare given in : Banking Regulation Act (Sec 45 ZA to 45 ZF)
3. What is the target of lending to Priority Sector for Domestic CommercialBanksother than RRB:40% of Adjusted Net
Banking Credit or Off BalanceSheet Exposure whichever is higher.
~ 4. Chargedcreated by Bailmentof goodsto secure payment of a debt is called: Pledge
5. If limit is 3 lacs, margin is 25%what should be stock to avail full limit?: Rs4 lac
6. As per section 26 of the NegotiableInstruments Act, a Minor can draw, endorse, accept a negotiable instrument but he
can not: bind himself
7. If on a letter of credit it is not mentionedwhether it is revocableor irrevocable,then as UCPDC600, it will be treated as :
Irrevocable LC
8. What was First step towards computerisationin Banking: Setting up ALPM (Advance Ledger Posting Machine)
9. A has granted Irrevocable Power of Attorney in favour of B for one year. After 3 monhts, A revokes the Power of
Attorney. A cheque signed by B is presented for payment. What will you do? The cheque will not be paid because
POAcan be withdrawn before maturity and once it is revoked, no cheque signed by agent can be debited to
account of Principal
10, In case of SGSYscheme,the number of members of the Self Help Group should be normally and in difficult
areas : 10 to 20; 5 to 20.
11. For acquiring securities charged to the bank under SARFAESI,notice of __ days is required to be given to the
borrower and for saleof securitiesso acquired notice of __ days is required.: 60 days, 30 days
12. ServiceTax is not applicableon : Interest received on advances
13. Net workinqcapitel is Rs 80,000; Current Ratio is 3:1; What will be the current assets?:Rs 120,000
14. What doesthe letter "C" representin the rating model CAMELS:Capital Adequacy
15. What is the Doctrine of Ultra Vires in the context of a limited company?: Any act by the directors beyond the object
of the company is considered ultra vires the company and company is not bound by such act.
16. What is the target for foreign. banks..with less than 20 branches in India for financing Priority sector: 320/0 of the
adjusted net bank credit or credit equivalent of Off balance sheet exposure whichever is higher.
17. Corporate Debt Restructuringis applicablewhen a limited company has raised finance from more than one bank and the
outstanding is: Rs 10 crore and above.
18. The substandard accounts which have been subjected to restructuring, whether in respect of princlpal instalment or
interest amount, and has satisfactoryperformance, would be eligible to be upgradedto the standard category after: one
year after the date when first payment of interest or of principal, whichever is earlier, falls due, subject to
satisfactory performance during the period.
19. What is a Break even point: The level of sales at which a firm does not earn any profit and does not incur any
loss.
20. Relaxation in KYCnorms is permitted if the depositor undertakes that the balanceoutstanding in his account will not be
more than and credits in a financial year will not exceed . Rs 50,000; Rs 100,000
21. A minor who was admitted to the benefits of partnership has becomemajor. Within how much period, he has to decide to
remain partner in the firm or not?: within 6 months of attaining majority or 6 months of knowing that he is the
partner in the firm whichever is later.
22. Working capital limit to Small ManufacturingEnterprises up to Rs 5 crore is worked out as per which method?: Turnover
method suggested by Nayak Committee.
23, Which of the following is a current liability?: Bills payable
24. For being eligible to be classifiedas small (service) enterprise, the original investment in equipment should not exceed:
Rs 2 crore.
25. If on a cheque words "Account Payee" is written between two parallel lines or with the name of a bank, then: the
cheque can not be endorsed. •
26. Which type of crossing is requiredto be done if the drawer wants that in case of endorsement, the title of transferee of
the cheque should not be better than the title of the transferor: Not Negotiable Crossing
27. Which of the following is indirect rate for quoting exchange rate in foreign exchange?: Rs 100= US $ 2.60 (Home
currency is fixed and foreign currency varies) . .L-
28. In caseof agricultural advances,no dues certificate is not required for loan up to: \JP""'~ Pm"!
A moLl.}A.1.
29, In the case of dishonour of a cheque due to insufficient funds, for enforcing rights under section 138 of the Negotiable
Instruments Act 1881, the holder should send a notice to the drawer within: 30 days from the date of receipt of
notice regarding dishonour of the instrument.
30. The limitation period for filing case in case of dishonour of cheque due to insufficient funds is: 1 month from the date
of cause of action.
31. A director of a bank wants to raise loan of Rs 10 lakh from his bank against Life Insurance Policy with surrender value of
more than Rs 15 lakh. What will be done?: Bank can sanction. .' .
32. The police seeks information regarding conduct of an accou~t bei~g maintai~ed.in your branch In con.nectlonWith some
investigation. Can the bank passon the information? : Yes, If the information ISasked by an offiCial of the rank of
incharge of Police Station or above and in writing.
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)
33. What should the minimum holding of Governmentin public sector banks?: 51%
34. Objectives for which a company has beenformed are given in: Memorandum of Association
35. In which of the following cases,the documentis required to be attested by two witnesses?:(a) Pledge (b) Hypothecation
(c) Mortgage (d) Lien . . .
36. A document was executed by three partners in different dates. When shall the limitation period start?: The limitation
period will start from the last date i.e. when the document was executed by the last partner.
37. Loan Delivery System suggested by RashidJilani Committee is applicable on borrowers with working capital limits of: Rs
10 crore and above
38. Investment Fluctuation Reserveis maintainedon securitiesclassifiedas: "Held for Trading" and "Available for Sale"
39. Fund Flow statement is a statement of: Sources and Application of Funds over a period
40. RevaluationReserveis created as a result of: appreciation in the market value of land & building
41. What is Deferred Guarantee?: It is a type of financial guarantee which is issued when some machinery is
purchased on instalment basis i.e. the payment is to be made in instalments over a period of time.
42. Full form of BCBSis: Basel Committee on Banking Supervision.
43. ServiceTax is to be deducted on: Rent of real estate properties
44. DSBreturn is related to: Off site surveillance
45. Fraudulent Draft presented and paid,who is to lodge complaint: Paying banker
46. Loan to a company engaged in construction of projects, which method of financing is to be used: Cash Budget
method.
47. What is the meaning of Group in ExposureNorms: Commonality of management
48. A Small Manufacturing Enterprise unit is consideredas Sick Industrial Unit: when account remains sub standard for
more than six months or there is erosion in the net worth due to accumulated cash losses to the extent of
500/0 or more of its net worth 'during the previous accounting year and the unit has been in commercial
production for at least two years
49. What is the purpose of adopting IRAC(Income Recognitionand Asset Classiflcatlon) norms in India?: to move towards
greater consistency and transparency in the published accounts.
50. What is ChequeTruncation?: converting physical cheque-into electronic form through scanning.
51. POSCOof South Korea is related to which industry: Steel Industry
52. Expandthe abbreviationsGAAS:Generally Accepted Auditing Standards
53. G-8 is the name given to : Wealthy Nations
54. NathuLa Passis located in :Sikkim
55. City Alang is famous for: Ship Breaking Industry
56. Islamic Banking is based on the principlesof: Conservative Banking (on no interest basis)
57. Walmart is related to : Retail Trading
58. Lakshyais a : Unmanned Aircraft
59. Minimum Maturity Periodfor Certificateof Deposit is : 7 days
60. CleanAudit Report means: An audit report without any qualifications
61. Direct Impact of increasein CRRis : Controlling Liquidity
62. The procedure usedfor ascertainingCustomersCredit worth is called: Credit Rating
63. Green field project is related to : setting up new projects
64. What is RealRate of Interest?: Prevailing interest rate minus inflation rate
65. Hot Listing of ATMcard is done when: The card is lost
66. The main distinction between Hypothecationand Pledgeis on account of: Possession
67. What is the periodicity of R Returnsent to RBI: Fortnightly
68. Why KYCguidelines have been issued by RBI under section 35 A of the Banking RegulationAct: To prevent Money
Laundering
69. Banks can not issue Demand Draft payableto Bearer as per provisionsof : Sectioll 31 of the RBI Act
70. At least __ portion of DRI advancesshould be made by Rural and Semi Urban branches:2/3 rd
71. Advance to a dealer in irrigation equipment will be treated as indirect agricultural advance provided the amount of
advance does not exceed : Rs 500 lakh
72. Grace Periodis allowed in the caseof : Usance Bills and Usance Promissory Notes
73. In Letter Of Credit jmporter is called: Opener of Letter of Credit _
74. Ad~anceqranted for setting up Warehouseor Cold Storage anywhere in India will be consideredas indirect advance to
agriculture provided the amount of advancedoes not exceed : No Limit
75. Apiculture means: Bee Keeping -
76. In case of agricul~ur~1advance no ~argin or collateral security should be taken up to: Rs 100000/-
77. If a :mall enterprise In manufacturinqhas a good track record, collateral security can be waived up to: 25.00 lacs
78. ServiceArea Approac~has beenstill continuedfor: Government Sponsored Scheme
79. Ca~hBudget method IS used for sanctioningworking capital limits to : Seasonal Industries
80. Indian Banksa~er~uired to maintain minimum Capital Adequacy Ratio of : 9%
81.
In the case of individuals and HUFftax will be deducted at source if the interest on term deposit in a financial year is .
more than Rs 10,000 .
82. If payment of Rs 20000/- is made in cash in case of FORwhat is the penalty: equal to the amount paid

2
 A K GUPTA'S B~NKERSTRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)
N S TOORS INSTITUTEOF BANKING CAREER& STUDIES(SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)
83. If Power of Attorneyis executed outside India it should be stampedwithin:90 days of its first arrival in India
84. For its implementation,the complainant should accept the award given by Ombudsman within: 30 days of the receipt
of the copy of the award.
85. When proceedsof chequeare given before clearanceof the chequethe banker will be called: Holder for Value
86. What do we mean by Surrender Value of Life Insurance Policy?: Minimum amount payable by the insurance
company in case of foreclosure of the policy before maturity.
87. Bank's chargeover UC Policy is created by: Assignment
88. In the caseof Wrongfuldishonour of cheque,to whom the bank is liable?:Drawer
89. Guarantee issuedby a bank which is still outstanding is shown in the BalanceSheet as: Contingent Liability.
90. Current Liabilitiesare those liabilities which are to be paid: within one Year
91. If date on a chequeis prior to the date of its presentation, it is called:Ante Dated Cheque
92. In Senior CitizenSavingSchemeaccount, who can be joint account holder?:Spouse
93. What is minor'sliabilityin HUFAccount: Minor is not liable
94. When doesthe right of nominee starts in respectof a deposit account?:After death of all depositors
95. Why loan againstPartlyPaid Shares are not preferred by banks?: Because partly paid shares represent contingent
liability. In case company makes demand and the borrower does not pay the amount then the bank will
have to pay the amount otherwise share may be forfeited. Moreover it is prohibited by RBI
96. What is the purposeof preparing R Returnsthat are submitted to RBI fortnightly as on 15th and last day of the month?:
To report purchase and sale of foreign exchange to compute Balance of Payments position.
97. For injecting moneyin the market which type of transaction is undertaken?:(a) Repo (b) ReverseRepo
98. Pre shipment credit is allowed on the basisof: f.o.b. value of goods
99. Packingcredit loan is adjusted out of the proceedsof: Export bills, export incentives and EEFCaccount
100. Return on Investmentis calculated to ascertain__ of the unit.: Profitability
101. For ascertainingthat a firm will be able to generate suffkfent profit to repay instalments of term loan, which ratio is
computed?: Debt Service Coverage Ratio
102. Total IndebtednessRatiois represented by: Total outside liabilities divided by Tangible Net Worth
. ' '. '103. In the BalanceSheetof a bank, Contingent Liabilities are shown as: footnote to the Balance Sheet.
104. Garnisheeorder is not applicable to: Unutilised portion of the cash credit limit
105. Which of the following is not added in the demand and time liabilities for calculation of SLR?:Capital and reserves,
inter bank deposits for maturity up to 14 days, borrowings from RBI and refinance from NABARD, SIDBI.
106. Financefor constructionof road and port is classlfled as: Infrastructure Finance.
107. Banks are requiredto declare their financial results quarterly as per provisionsof : SEBI
108. RBI controls moneysupplythrough: change in CRR
109. The full form of FRBMis: Fiscal Responsibility and Budget Management
110. Loan was raisedfrom the bank against NSCby Mr. X and noting to this effect was recorded in the issuing Post Office. X
dies. The nomineeapproaches post office for payment of NSC.Who will have priority i.e. bank or nominee?: Bank will
have prior claim against NSC.
111. Hypothecationcan be converted to pledge by: taking possession with the consent of the borrower.
112. An account was restructured on 30th June 2011 and first instalment was due on 31.12.11. The instalment was deposited
on 29.12.11. The accountwill be consideredas standard if instalmentsare paid regularly for 12 months with effect from:
31.12.12.
113. Subsidy underAgri dinic Agribusinessis % for general and % for SC/ST: (36% and 44%)
114. Small (service)enterprisesare those units where original investment in equipment is: upto 2 crore
115. Under CGFTschemefor MSE, for loans up to Rs 50 lac, 80% coverageis not available for: SC/ST
116. If a bank has oversold position in foreign exchange, it will incur loss: when the value of foreign currency
appreciates.
117. RadhakrishananCommitteeis related to: Agricultural Indebtedness
118. The committeethat recommendedconcurrent audit was headed by: Shri Ghosh
119. RakeshMohancommitteeis related to: Committee on Financial Sector Assessment (CFSA)
120. Restructured account can be upgraded to standard if the operation in the account is satisfactory for a period of: 12
months from the date when the first instalment was due.
121. In case of failure of a customer to meet its commitment in settling his dues in time it will come under which type of risk?
Credit Risk
122. Which of the following approaches is not relevant for measurement of capital for operational risk?: Internal Rating
Based approach (It is relevant for credit risk) . .
123. Rate of Interest on adhoc packing credit limit is: same rate of interest as for normal packmg credit loan.
124. What chargeto be createdfor demat shareswith bank as security: Lien • • 0
125. TDS not depositedin time. What is the interest payable?: Bank to pay the amount With mterest @ 1.5 Vo per
month simple. . . ..
126. If the last date of shipment under LC is mentioned as on or about 30.06.2012 - shipment will go Within: 5 days before
and 5 days after 30.6.12
127. Loan given to a director can be waived: after permission of RBI.
128. Noting in Hindito be made in area "C": 30%
3
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)
129. For the purpose of MedicalTreatment, how much amount can be remitted freely on declaration ba.s!s:~S $ 100,000.
130. As per a recent judgement of the Supreme Court, while initiating action under SARFAESI,the P?~I~lonIn case of SUItfiled
in DRTwould be: that no permissionis required from DRTand action under SARFAESIcan be Initiated as both the cases
can run together.
131. Underthe Ombudsmenscheme,the Bank has to reply to the objection of the complainantwithin: one month
132. What is the benefit of RTGS:Safe, speedy & client can use the funds sameday.
133. PillarIII of Basel-It is relatedto: Market Discipline
134. Uponfinding the counterfeitcurrency note on the counter, the action of the bank should be: Impound the currency note
but credit full amount to customer.Receipt not to be issuedto depositor.
135. Banks are required to maintain a margin of __ for issuing Guarantee favouring stock exchange on behalf of share
brokersof which cashmarginshould be: 50%; 25%.
136. For banks which do not haveoverseasbraches, BaselII norms have to be implementedwith effect from: 31.3.09
137. Locker should be broken open if it is not operated for _ year in case medium risk and _ year in case of high risk
customers: (3,1).
138. If a Sub-Standard sk: rephased,when this will be upgraded: after 12 months of first instalment due and account runs
satisfactorily for 12 months.
139. NREGPscheme (NationalRuralEmployment GuaranteeProgramme) has beenextendedto entire country w.eJ. : 01.4.08
140. What is the stake of CentralGovt., Soonsoring Bankand State Govt. in RRBcapitalstructure: 50:35:15.
141. Debt Equity Ratio indicates:Longterm solvency or capital structure of the firm.
142. How DSCRis calculated?:(Profit after tax + Depreciation+ Interest on Term Loan) divided by (Annual instalment of term
loan+ interest on term loan)
143. If Debtorsvelocity ratio increases,it means debt collectionperiod has increasedor sales have decreased.
144. Perpetual bonds and perpetualnon cumulative preference shares as part of tier I capital can be up to __ % of tier I
capital: 40%
145. The liability of Introducer in caseof fraud by the customer: No legal liability
146. Day light position for dealersin forex is: higher than the overnight position
147. What refers to P-Notes:PartiCipatoryNotes used by Foreign Institutional investors for investment by overseas investors
who are not registeredwith SEBI.
148. Current balance is Rs.60001-. A cheque of Rs.18,0001- is presented. Branchpassedthe cheque by allowing TOO. After
few days, fixed deposit of the same party matured and TOO was cleared by crediting the proceeds to CA. Customer
disputes the transaction. Whether bank is having right in doing so? : Normally no without specific request of the
party. However, if bank has a specific clause in the account opening form to allow overdraft in such cases
and customer has consented to such clause, then temporary overdraft can be allowed and recover the
same from the account holder even if there is no specific request from the party.
149. As per RBI guidelines, concessionalinterest on Pre Shipment Credit in rupeessanctioned up to 30th June 2010, can be
extended upto _ days: Ans: 270 days
150. What is the special feature of Basic banking Account?Account can be opened with nil or very small amount and
there are no requirement of minimum balance.
151. Which equipment is requiredto capture the signature and photograph and createthe same in the programme: Scanner
152. Provisionson StandardAssetsare shown under which head in the balancesheet of the Bank?: Other Liabilities and
Provisions on Liabilities side.
153. A post dated cheque is passedin the account of a customer. But another chequewhich was in order was dishonoured
due to insuffiCientfunds. What is the liability of the Banker?: Bank is liable to the drawer for paying post dated
cheque as bank is not justified in paying post dated cheque. The bank will be liable to drawer for damages
on account of wrongful dishonour of cheque.
154. What is the limit for classifyingthe loan sanctioned to Drip and Sprinker irrigation dealer, for including under Indirect
finance to Agriculture?: Rs 500 lakhs
155. Balanceoutstanding in a CClimit is Rs.9 lakh. Value of stock is Rs.5 lakhs. It is in doubtful for more than two years as
on 31 March 2012. What is the amount of provision to be made on 31-03-2013?: Rs.9 lakhs (100% of liability as
account is doubtful for more than 3 years)
156. In an endeavour to promote export credit, the target for export credit for Indian Banks has been fixed at and for
foreign banks has beenfixed at: None as there is no target for export credit for any type of banks.
157. Which type of preferential shares are treated as part of Tier I capital of the Bank?: Perpetual Non Cumulative
Preference Shares.
158. As per RBI gUidelines,all banks are required classify businessin various businesssegments with effect from 31-03-2008.
The.segments are: (a) Tr~asury (b) Corporate I Wholesale Banking, (c) Retail Banking, (d) Other Banking
BUSiness. The geographical segments are 'domestic' and 'international'.
159. Gen~ral provision on standard assets except specified categories is: 0.40% of the balance outstanding on global
baSIS.
160. Customerof your bank asksfor cash payment of crossedDO. What would you do? Generally payment only through bank
~ccount. However, bank can pay after duly satisfying the genuinenessof the draft and payee but bank will continue to be
liable to true owner if recipientis not true owner. .

4
 A K GUPTA'S B~NKERS TRAINING INSTITUTE ((75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)
N S TOOR S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)
161. TDS collectedto be deposited with the Income Tax Deptt within: 7th day of succeeding month during which it is
collected. .
162. For classification of assets in consortium accounts, which of the following is to be considered?: In consortium
accounts, each bank will classify the account as per its record of recovery.
163. Who is bound to file particulars of charge with the Registrarof Companies under MCA 21, when a company creates
chargeof somebodyon its movable or immovable property exceptby way of pledge?: officials of the company.
164. Credit of Rs.20,OOO/-was taken as Rs.2000/- and as a result a cheque was returned in the account for want of funds.
Bank hasalready sent statement of accountto the depositor who has acknowledged receipt of the statement of account.
Whether bank is liable?: Yes. Liable to drawer of cheque.
165. LegalExpensesincurred by Bank in respectof suit filed accountto be debited to : P & L account
166. A cheque is presented for payment in which the amount in words and figures is different. Bank should pay which
amount?:amount written in words will be paid.
167. What is the percentage in RegionA to bring training materialsbilingually?: 100%
168. Advanceto a company against Trust receipt where documentof title goods transferred to bank and goods to be released
against payment by the company. Whether a charge is to be registeredwith the Registrarof Companies under MCA21?:
Not Required
169. Whether a PrivateUmited company can be a partner with PublicUmited company to form a Partnership?Yes
170. Liability of the Bankin case of Guaranteesissued on behalf of its customers is: Contingent Liability
171. In the context of Nomination, which is correct statement?:Signatures of nominee not required on nomination
form. Nominee's name should be mentioned on FDR if agreed by the customer.
172. A bearerchequeof Rs.7,OOO/-was presented. The cashierinformedthat the cheque can not be passed as the balanceis
less by Rs.700/-. The tenderer credited the amount of shortfall and the cheque was paid. Customer disputed the
transaction.Whether bank is liable?:Yes. For disclosing balance to third party, bank is liable to account holder.
173. When does liquidity risk arises?: Liquidity risk arises when maturing liabilities 'are more than maturing assets.
174. EducationLoan up to RS for studies in India and up to Rs.__ lakhs for studies for abroad are treated as Priority
Sectoradvances: Rs.I0 lakh, 20 lakhs
175. In caseof PMEGP;.maximum project cost under ManufacturingSector is __ and ServiceSector is __ : Rs 25 lakhs
and Rs 10 lakhs
176. What are the chargesfor NEFTof Rs.3lakhs: Rs.25 plus service tax
177. Under multiple banking system, exchangeof information betweenthe banks is to be done for the limits of __ crores
and aboveand periodicity is __ : Rs.5 crores and Quarterly
178. UnderSARFAESIAct, in the case of Consortium lending, _ % of creditors to agree to bring the action under SARFAESI:
60% of creditors by value.
179. What is the ServiceCharge for a remittanceof Rs.20,OOO/- to Nepalif payee not customer of NSBL:Rs 100
180. NormallySGSYgroup shall contain memberswho are below poverty line only. In case of non availability of BPLmembers
to the fullest extent, the number of personsabove poverty line can be __ and in exceptionalcases up to __ :200/0
&30%.
181. What are the charges for balance enquiry through other bank'sATMs: NIL up to 5 transactions at other than 6
metro stations
182. Receivablesin terms of export bill negotiated under LCshall be treated as: contingent liability for exporter
183. Profit beforetax Rs 150; Tax Rs 40; Depreciation Rs 30; Interest on Term Loan Rs 30; Annual instalment of term loan Rs
70; calculateDebt Service Coverage ratio: 1.7 ( Net Profit after Tax + Depreciation + Interest on Term Loan)/
(Instalment of Term Loan + Interest on Term Loan).
184. TDSat the rate of 10% is to be deducted at source in caseof individualsand HUF, if the rent payable in a financial year
exceeds : Rs.l,80,000
185. For purpose of classification of Wilful Defaulters for reporting to RBI, the outstanding should be: Rs.25 lakhs and
above
186. __ % outstanding under General Credit Card Scheme is to be treated as __ : 100 %, Other Priority Sector
Advance
187. As per KYCguidelines,the periodicity of obtention of photographand latest address proof for Low Risk Customersis __
MediumRisk__ years and High RiskCustomers is __ : 10 years, 8 years 2 years.
188. The Meaningof Debtor Velocity Ratio.is: Cycle of Debt Collection Period . ..
189. When an order passedby Banking Ombudsmanis accepted by the complainant, the same should be complied withm: 1
month from the date of receipt of acceptance from the complainant.
190. The family incomecriteria for urban areas under DR! schemeis Rs. : Max Rs 24,000/- p.~. .
191. Composite fees for CGSMSEin case of advance more than Rs 5 lakh in North Eas_ta.ndWo~en IS__ an~ for micro
credit upto Rs.S lakhs in North East& Women is_: 0.85% and 0.75% p.a. of limlt ~nctloned respectively,
192. In project finance, Debt Equity Ratio requirement for other ~an In~ra~ructure. fina~ce IS:2:1 . '.
193. Penaltyfor delay is __ per day if information is not furnished wlthin prescnbed time under RIght to Information Act.
Rs.250. . bl rty t
194. In case of NROaccounts, Authorised Dealers can allow repatriation of the sale proceeds of unmova e prope up 0
__ in a financial year: US$ 1million.

5
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)
195. A bank who has purchased NPA from other bank can resell the same, after holding the same in its books for
months from the date of purchase: 12 months
196. Under BASELII, for calculating capital for Operational Risk which method is to be applied for the time being: Basic
Indicator Approach .
197. As per RBI guidelines, Loans to Agro and food processing Units are eligible to be classified under Small Enterprises
provided the original investmentin plant and machinery does not exceed:Rs.5 crores
198. A unit in Servicesectoris treated as Small Enterprise if original investmentin equipment is up to: Rs. 2 crore
199. For being part of Tier II capital, RupeeDenominated subordinated debts shouldhave minimum maturity period of __ ._
and maximum maturity period of : Minimum maturity:5 years Maximum: Perpetual(no maturity
prescribed
200. To be classified as PrioritySector,the limits on advance for repairs to dwelling unit located in Rural is __ and for units
located in urban areasis Rs. : Rs.2 lakh rural, Rs.5 lakh urban
201. BaselII consists__ Pillarsand number 2 pillar is : 3 pillars, Supervisory Review is Pillar no.2
202. Which method is bestsuited for calculating working capital requirementsof Seasonal Industries: Cash Budget Method
203. BenchmarkCurrent Ratiounder turn over method is: 1.25
204. For implementation of restructuring proposal under CDR mechanism, consentof _ % lenders in value and __ % in
Number is required: 75% by value, 600/0 by number.
205. Decisionon debt Restructuringof SME should be taken within a periodof __ days: 60 days.
206. RBI has restricted sanctioningof/Continuance of existing loans granted againstFCNR(B)deposits to: No limit
207. Under UCPOC600, what is the tolerance limit of variation in Quantity, if not specificallymentioned in LC: +/ - 5%
208. What do you mean by Firewall?:Software programme which denies access to the hacker.
209. In respect of a project report, the feasibility which is given least importance by the preparers of the report, but very
important for a cankeris : a) Commercial b) Technical c) economicd) flnandal Ans: C
210. If a LCcontains a clause"about" regarding the amount and quantity of goods,how much tolerance is permitted?: 100/0
211. A crossed DD was paid by cash. What risk is there for the Bank: Bank will be liable to true owner of the DO if
payment made to a person other than true owner (Section 129 of N I Act). . . .'
212. What are the benefitsof coveringadvancesunder CG5MSE?:Bank can finance viable projects without insisting for
collateral security.
213. A cheque is written in Englishand Regional Language. Whether it can be paid?: Yes. A cheque written in different
language can be paid if otherwise in order.
214. What is the type of liabilityfor the bank Oil account of issue of BankGuarantee?:Contingent Liability
215. For financing Tea, Sugar industry, working capital finance should be consideredunder which method?: Cash Budget
Method.
216. If there is delay in reporting to RBI by currency chest or there is double/excessreimbursement, what is the rate of
interest charged by RBI?:Bank rate + 2%.
217. Which of the following is part of Tier II Capital? (a) Statutory Reserves (b) Other disclosedreserves (c) Capital reserves
from sale of assets(d) RevaluationReserve:Ans is 0 l.e, Revaluation Reserve.
218. In case of 5ARFAESIAct, before preferring appeal to DRAT, how much amount is to be deposited by the borrower with
DRAT?: 50% of the daim amount which can be reduced to 25% by the DRAT. For making application to
DRT, no amount is to be deposited.
219. Within how many days, Export documents and Bill of Lading to be submitted to Authorised Dealer for realization?: 21
days of shipment.
220. In a Doubtful account,which is doubtful for more than 3 years, how much provisionshould be made if the account is fully
secured by tangible security: 100% of the amount outstanding.
221. A unit other than 551will be treated as weak unit if: (a). any of its borrowal accounts (principal or interest) has
remained overdue for a period exceeding one year; or (b) there is erosion in the net worth due to
accumulated losses to the extent of 500/0 of its net worth during the previous financial year
222. To arrive at group concern,factors to be looked into are: commonality of management + effective control.
223. ProviSionfor unsecuredadvanceunder substandard category: 250/0 for other than infrastructure.
224. Legal risk is part of: operational risk.
225. Tier I should be at least 6% of Risk weighted assets and should be achievedbefore __ by all scheduled commercial
banks: 31.3.2010. .
226. In case of loans under SGSY,no collateral security is required for loansup to: Rs 100,000 to individuals and up to Rs
10 lac to Self Help Group. .
227. The limitations of finandal statements are: only quantitative not qualitative. .
228. While financing for TL, Bankshould look for the ability of the firm to generate the income to service the debt
229. RTGS- timings for customers- Monday to Friday 9.00 to 4.30 Saturday 9 .00 to 14.00
230. Hypothecationdescribedunder SARFEASI Act.
231. U.nspent~oreignexchangein Fe can be retained up to 2000 US $ and no limit for foreign coins.
232. Bill of lading to be submitted within 21 days: if date of shipment is 28th Sep 08 documents to be tendered on or before
19th Oct 08. '
233. Tier 2 - general?~OviSioning & loss reservesonly up to 1.25% of total risk weighted assets.
234. Upper Tier 2 -rmmmum maturity is 15 years for Debt capital

6
 A K GUPTA'S B~NKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)
N S TOOR S INSTITUTE OF BANKING CAREER & STUDIES {SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720}
235. Off Balancesheet I On Balancesheet exposure- if altered the risk will be Credit Risk.
236. Riskweight for claim on Bankswhich complies to Min CRARrequirement: Scheduled Banks 20%
237. CGMSE- upto 5 lakhs cover in North East: 0.75% p.a, of limit sanctioned.
238. CDR2 - (classified as Doubtful) Mechanismcan be permitted only - if a minimum 75% of creditors by value and
60% creditors by number should satisfy themselves of the viability of study.
239. 100% of GCCaccounts and up to 500001- overdraft permitted in no frill accounts will be treated as: Other Priority
Sector.
240. Provisionon Doubtful for> 3 years = Deficit + 100% of security (i.e) 100% of liability
241. KYlCloan irrespective of location /arnount/ investment in plant & machinery is treated as SME- Micro Manufacturing
Sector with in Priority Sector.
242. Advancesup to 50 lacs against pledge I Hypothecationof Agricultural produce for a period not exceeding 12 months _
treated as priority sector.
243. Who cannot becomea partner in a firm as per supremecourtjudgment - HUF
244. Introducers liability I responsibility in case of an account holder defrauding Bank is: To assist the Bank in locating
the alc holder - does not have legal liability
245. Nomination- Minor can be a nominee.
246. NR! customer seeking loan against FCNR/NREDeposits30 lacs: It can be given because there is no limit on loan
against NRI Deposits.
247. Inoperativeaccounts: 2 Years & above not operated.
248. UCPDC- for examination of documents- 5 banking days (Act 14 b)
249. OSCCommissionon cheque for Rs. 80001- : Rs.50/-
250. GuarantorsLiability: Recallthe etc and cause demand against the borrower and guarantor. Balance in guarantor's SB
alc cannot be appropriated directly.
251. Capitalaccount convertibility means the freedom to convert to financial assets in to foreign flnanelal assets and
vice versa.
252. Kiteflying means accommodation receipts and payments and not genuine trade transactions
253. RTI Act - party seeking information 'need not disclose the reasons for which the information sought for.
254. Excessof current liability over current assets means the firm may face difficulties in meeting its financial
obligations in short term.
255. ATMcash not dispensed- customer complaint to be redressedwith in 7 working days
256. BaselII - Operational Risk- Basic Indicator Approach.
257. Counterfeit notes returned after police verification, the same has to be preserved for '3 years subject to half
yearly verification.
258. SMEDebt restructuring: It should be ensured that the unit is viable in 7 years and loan repaid within 10
years.
259. FCNR(B) Deposit Exchange risk is borne by respective banks.
260. Validityperiod of cheque reducedto 3 months from 1.4.12 as per : RBI Guidelines under sec 35A of BRAct
261. PMEGP- Margin I Promoter contribution : 100/0 General & 5% for Spl category borrowers
262. DR! - FamilyIncome in Semi urban - Ceiling Rs. 24000/-
263. PCFC- Refinance- Not available
264. Crossedcheque payment acrossthe counter to the authorizedOfficer of collecting Bank - can be made and there are
no violation as per NI Act.
265. The consequenceof non registration of Partnership- firm cannot sue others for its dues.. . .
266. Banksare required to implement the award of Ombudsmanunlessa decision is taken to appeal against the same Within
one month from the date of receipt of acceptance of the award by the complainant.
267. An NPAhas been purchased by a bank from another bank. What will be the risk weight for the purchasingbank for this
account?1000/0 •
268. FCNR(B) account can not be opened in which of the following currencies - US Dollar, Euro, GBP,Australian Dollar: None
of these as it can be opened in any freely convertible currency. .
269. In casepacking credit in foreign currency is not adjustedwithin 180 days, what will be the rate of Interest chargeableon
suchadvanceafter 180 days: Bank's discretion
270. In short term agricultural advances, interest subvention is allowed. What is the rule in this regard? : Interest
subvention at the rate of 20/0 allowed up to Rs 3 lakh and bank will charge interest at the rate of 7%.
271. RBI has issued star series notes for replacement of wrongly printed currency notes. Currently, these notes have been
issuedin the denomination of : Rs 10, Rs 20, Rs 50, Rs 100.
272. Hypothecationwhich creates equitable charqe has be~ndefined in: SARFAE~I Act;
273. Packingcredit is normally allowed for a maximum penodof : as per bank discretion. . .
274.
275. ~a~~~~~~~~e~~~~~t~y~:~e~~T~~) t~k;r~~;: of Wh!~ho7~~~~~S~?~~!~t:;~~P~~~~~;0:~:I:~iche:i:~
. estment in plant & machinery does not exceed Rs 10 lac in the case of manufactunng Units an oes no exc
~ .' .~~
lac in equipment in the caseof service enterpnses. oft k . the same as NPAin the books of selling book for at
276. A bank can sell its NPAaccount to another bank only a er eepmq
least: Anytime 7
 A K GUPTA'S BANKERS TRAINING INSTITUTE ({75, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER 8r. STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)
277. What is the maximumamount of subsidyfor Self Help Group in SGSYscheme?:Rs 125,000.
278. An NREdeposit was made for 5 years with the bank. What will be the interest rate payable on this FOR:As per bank
discretion.
279. For calculationof capital adequacy ratio, the risk weight for CommercialRealEstate for commercial bldg is : 100%
280. If in a NPAaccount,the value of security both primary and collateraldeterioratesso much that its realizablevalue is 10%
and above but lessthan 50% of the amount outstanding, then this accountis directly classified as: Doubtful asset.
281. Account holder A & B want to substitute their name with the nameof their sons C & 0 in the account. What should the
bank do?: Substitution of all names is not allowed. At least one of the original account holder should be
retained in the account.
282. For making reference under CDR-I, what are the rules regardingconsentof Creditors: Consent of 200/0 of creditors
by value is required. (There is no condition regarding number).
283. When only imageof cheque is sent to the paying bank while sendingchequefor collection instead of sending the physical
cheque,the processis called: Cheque Truncation
284. Maximum amount of loan to DR! benefiCiarywas revised as per Union Budget 2007-08. What is the maximum loan other
than the HousingLoanto SC/sr that can be granted to DRI beneficiary:Rs.15000/-
285. SGSYschemewhich is applicable only in the rural areas has been implementedwith what objective?: The objective of
SGSY is to bring the assisted poor families (Swarozgaris) above the poverty line by ensuring appreciable
sustained income over period of time.
286. ServiceTax should be deposited with the Govt. by: 5th day of the next month (within 5 days after close of month
in which it was deducted)
287. Indian Banksare required to lend at least to Agriculture: 18% of Adjusted Net Bank Credit (or 45% of PS
advances).
288. The maximum amount of guarantee cover for loans granted to smalland micro enterprises other than beneficiariesin the
North EasternRegionand women entrepreneurs and guaranteed by CGFTis: 750/0 of the amount outstanding up to
Rs 50 lakh and 50% thereafter as on the date of account becoming NPA with a maximum of Rs. 50 lacs
(coverage upto 100 lac) .....
289. A Letter of Credit that contains clausefor giving advance for pre-shipmentis called: Red Clause LC
290. What is maximum limit for remitting funds abroad under Uberalised Remittance Scheme in a financial year: .

291. Starting of a computer is called: Booting

292. Which of the following is not of minority community-Muslim,Sikh,Christian,Jain, None of these as all are minority?: N!Mc: oF1h('Si!
293. What is the rate of provision in case of doubtful assets which is in 02 category i.e. which is doubtful for two years?:
Unsecuredportion 100%; secured portion: 40%
294. For taking action under SARFAESI,the outstanding should be: More than Rs.l.00 lac
295. A Cheque partly written in English & partly in regional languageis presented for payment. What should the bank do?:
May be paid, if otherwise in order and the language other than English is the regional language of the area
where the cheque is presented.
296. An authority has been granted in an account. You have receivedinformation about the death of the Principal.Today, you
receive a cheque signed by the agent which is dated prior to the death of the Principal. What should the bank do? :
Cheque can not be paid as authority of agent comes to end with the death of the Principal.
297. You are maintaining current account in the name of the Trust. You receive notice of death of one of the trustees. After
this notice, a chequesigned by the deceasedtrustee is presentedfor payment. What should the bank do?: Cheque may
be paid, if otherwise in order.
298. For coverageunder Priority sector, the amount of advance for RetailTrade should not be more than: Rs.500 lacs
299. What is firewall?: A software programme for protecting against unauthorized access to the information.
300. As p~r ConsumerProtectionAct, the period for filing appeal to StateCommissionagainst decision of the District Forumis:
maximum 30 days
301. ~h~t is Co~posite fee payabl~to under CGFTfor loans more than Rs5 lac in North East and other areas: .85% p.a. of
~Imlt sanctioned for loans In North East or to woman or to micro enterprise and 10/0 p.a. of limit sanctioned
In other cases
302. Stock Audit is required in respect of loansof: Rs.5.00 crore & above
303. Limit for filing suit in DRT: Rs.l0 lacs and above
304. Whe~~pr~visionrequired (Standard, Sub Standard, Doubtful, Loss): In all cases
305. Provision I~ Sta~da~d~~egory. under Direct Agriculture & SME:0.25% of outstanding.
306. Letter received 10 Hindi In Region B, answer to be given in %age: 1000/0
307. Who can not full fledged partner: Minor
308.
Inhc.o~eRs.1.00lac- TaxRs.o.~O lac, Income Rs.2.00 lacs: Tax Rs.0.30 lacs Income Rs 050 lac-Tax Rs 0 03 I
T IS ISexample of Progressive Tax I. • •• ac-
309. Which is exampleof Direct Tax: Income Tax
310.
I~ ho~ ~any da~sunutilized FOREXmoney to be surrendered: 180 days
311. Time limit for which Pre-shipmentCredit is normally allowed' need based
312.
Can Karta of ~UFappoint Agent or delegate the powers to oiner co- rce~er'
313. Money depositedafter receiving order may be attached' th paf. . Yes, he can do so.
10 e case 0 • attachment order

8
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar New Delhi -110063' Ph 011 65476949 09350476949)
N ~ ~OOR'S INSTITUTE OF BANKING CAREERlit STUDIES(SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)
314. Ongmal & duplicate draft presented simultaneouslyfor payment: Duplicate should be paid &. original should be
returned.
315. Company has registered office at Delhi, factory at Kolkata & loan taken at Mumbai. For creating equitable mortgage title
deeds can be depositedat: any notified city.
316. Limit for settling casesin Lok Adalat: Upto Rs.20 lacs
317. Provision in sub standardaccount, which are abi-initio unsecured: 25% for other than infrastructure
318. After how much time, NPAaccount can be sold: Any time after NPA
319. Reasonsfor avoiding advanceto Un-RegisteredPartnershipFirm: Firm can not sue against anyone for recovery of
its debts but anyone can sue against the firm.
320. What is the effect of 'Not NegotiableCrOSSing?: Transferee does not get better title than the transferor.
321. If documents are to be presented in about July month: these can be presented within 5 days before or 5 days
after.
322. Composite loan limit for Small Manufacturingenterprises:Rs.l.00 crore
323. Pledge is defined in: Indian Contract Act
324. When account will be out of order, in case of non-receipt of Stock Statement: If statement not received for last 3
months.
325. Limit for classifying the advance as Indirect Agriculture for Advance to Traders dealing in Input of allied activities:
Rs.500 lacs
326. Exemption of CollateralSecurity in Agri-BusinessClinicsCentre: Up to Rs.5.00 lacs
327. Which accounts are not eligible for CDR: Accounts under Loss category
328. Payment of cheque can be stopped by: only Drawer of the cheque
329. Who is not willful defaulter: Default beyond the control of the borrower
330. Malthusian theory on population: Population increased geometrically &. resources increased arithmetically
331. When limitation will not extend: Balance Confirmation signed after expiry of limitation period
332. Charge where SARFAESIaction can not taken: Pledge
333. Account payee crossingdefined in: Not defined any where
334. List of willful defaulter with balanceof __ to be submitted to RBI: Rs.25 lacs and above
335. CalculateTangible Net Worth: Land and building: 200 Lacs; Capital:80000intangible asset:15000: 65,000
336. What is the current rate of interest paid on CRR?:NIL
337. What is the provisioning requirement for personalloansin case of standard assets?.400/0 of outstanding
338. Supervisory Reviewaccording to which CentralBankof the country is to ensurethat proper capital has been provided for
risk exposure and maintain proper system for the sameis provided under?: Pillar II of Basel II.
339. Documents not stamped properly is what kind of risk?: Legal Risk
340. Risk arising due to failure or inadequacyof of internal system, procedure, peopleis: Operational Risk
341. What are the componentsof credit risk?: Transaction risk or default risk and portfolio risk
342. How can be the transferability of Bill of exchangecan be restricted? By making restrictive endorsement
343. If on a Bill of Exchange,two parallel lines are drawn and not negotiable is written between the lines, what kind of the
crossing will be there: Provisions relating to crossing are not applicable to Bill of Exchange.
344. Within priority sector, what is the allocationto weakersection?: 25%
345. In SGSY,what is the reservationfor women?40%
346. Minimum women Self Help Groups in SGSY?50% of the total Self Help Groups
347. Loan for setting up warehouse,godown will be part of priority sector, providedthese are located:Anywhere
348. Where can title deeds be deposited for equitablemortgage?Any notified Place
349. Challan used for depositing service tax:GR7
350. Quarterly statement for TDS on salary shouldbe submitted on form 24-Q within: 15days of the close of the quarter
351. Maximum time within which reply must be given under Right to information act? 30 days
352. Subordinate Debt should not be more than % of tier-I capital? 50%
353. On maturity of bank guarantee, an intimation is send to customer and if no response receivedin 30 days, vouchers are
reversed. This is done for following reason?Bank has to maintain capital on Bank Guarantee for the purpose of
capital adequacy norms.
354. Refinancefor export credit from RBI is availablefor? 180 days
355. What is the maximum sourceof forex inflow?FII
356. Which is the largest sourceof liquidity in equity market?FII
357. Which of the following is not true about "specialrunning Nc" of pre-shipmentcredit? Bills pertaining to other exports
orders can not be marked off against pre shipment for a particular bill.
358. What is the status of Nominee?Trustee of Legal heirs
359. Documents are releasedto importers on the basisof: Trust Receipt
360. Safe deposit vault is governed by provisionsof: Transfer of Property act
361. Full form of INANET? Indian Financial Network
362. Which of the following is not a disadvantageof CCaccount?Issuance of cheque book .
363. A cheque signed by agent has been presentedafter his death for payment. What should the bank do?: The cheque will
be paid if otherwise in order.
364. In which case CDRis not valid? Finance by single bank
9
 A K GUPTA'S BANKERS TRAINING INSTITUTE «7S, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623,09317812720)
365. Which of the following does not come under purview of trade union?To take control of Industry
366. As per FEMA,a resident is a person who stayed in India for __ days in the previous financial year: more than 182
Days
367. CAMELrating is done by: RBI to judge the health of banks
368. Purposeof star series notes: To replace defectively printed notes
369. Photographin accounts are taken as per recommendationsof: Ghosh Committee
370. Customer-bankrelationship in locker account: Lessee-Lessor
371. In case of payment of rent on property, tax is deducted at sourcewhen the payment of rent is likely to be more than Rs
180,000 per annum. The rate of TDS in case of rent payableto an individualis: 10%
372. Which of the following is an indirect tax? Sales Tax
373. Implementation of CDRpackageof SMEto be completed in:60 days . .
374. In case of a loan under consortium, each bank can have Maximumworking capital limit of Rs __ : No rule In this
regard. Rules of consortium to be framed by members of consortium.
375. Meetingof the Official LanguageCommittee is held: Quarterly
376. In case of revaluationof fixed assets, what percentageof revaluationreservewill be added to Tier IIcapital of the bank?:
450/0
377. Pensioneraccount can be opened jointly with? Spouse as Either of Survivor or Former or Survivor.
378. When a loan is recovered from guarantor for dues payable by the PrincipalDebtor, debtor becomes entitled to all rights
and remedies which the creditor had against the Principal Debtor. This right of guarantor is called: Right of
subrogation.
379. What is the %age of credit that should be given to micro enterpriseswithin small enterprises?: Minimum 60% of
advance to Small enterprises should be given to Micro enterprises.
380. Method usedfor calculation of bank finance for working capital up to Rs.2crore to small Serviceenterprises?Simplified
turnover method
381. For being defined as Medium enterprise, the original investmentin plant & machinery should be: More than Rs 5 crore
and up to Rs 10 crore.
382. As per Turnover method of working capital requirement, if salesturnover is RS.4Cr, then Bank finance can be: Rs.80
lacs
383. Upto what amount District forum can be approachedunder ConsumerProtectionAct?: Rs.20 Lacs
384. For implementationof CDRconsent is required from: 75% of creditors by value and 600/0 by number.
385. Appeal against the award of Ombudsman can be made by the bank within: 30 days of receiving the acceptance
from the complainant.
386. Chequeissuedby director of a company and presentedafter his death will be: Passed if in order
387. BRICcountries include: Brazil, Russia, India, China
388. As per UCPDC600, beginning of the month implies: 1st to 10th of month
389. What is the target for SC/STunder DRI: 40%
390. How Interest suspenseaccount is to be treated?: Reduce the balance for calculation of provisioning purpose
391. Difference between buying and selling rate of dealer is called: Dealer's spread
392. Selling rate of currency is higher than traveller cheque because:Holding cost of currency is high
393. Account of Bankof America with a bank in India in Rupeeis called:Vostro
394. Buy now and pay later is provided in: Credit card
395. A guarantee issuedfor a series of transactions is called: Continuing guarantee
396. What does a fund flow statement indicate?: Sources and Uses of Funds for a period
397. A crop is considereda long duration crop if the crop seasonis: More than 12 months
398. Clean audit report is the one which is: Unqualified
399. Sale of NPAis done on: Without recourse basis
400. What is the effect of increase in interest rate on securities?:Decrease in the market price of the asset
401. What does a trade deficit mean?: Imports are more than exports.
402. Primary Deficit is Fiscaldeficit?: Always less
403. Best indicator of country's growth?: GDP
404. Growth of people in a country is reflected in: real per capita income
405. What would be the action of central bank in recession?:create liquidity by decreasing CRR and lower the repo
rate.
406. GOP+ __ = GNP:Net factor income from abroad
407. Cost push inflation is due to: High cost of production
408. Which one is not govt's long term goal?: To bring down Crude's cost
409. Elasticityof Demandis least in the case of: Items of necessity.
410. Ante dated cheque like cheque dated 15.12.07 is presentedfor payment on 1.1.08 whereas the account was openedon
20.12.07 : Cheque should be passed
411. If amount in words and figures differ on a cheque and amount written in words is higher than the amount written in
figures, then as per sec.18 of NI Act, which amount should be paid?: amount written in words
412. Photograph is obtained at the time of opening the a/c. What is the purpose for the same?: for identification of the
prospective customer

10
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar New Delhi - 110063' Ph 011 65476949 093S0476949)
N S TOOR'S INSTITUTE OF BANKING CAREER 8. STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665613,09317812720)
413. For taking action under SARFAESIAct and for acquiring assets under the same, bank is requiredto issue notice of : 60
days
414. Nomination facility is not available in the caseof: Trust A/c.
415. If debtors are Rs 4 lac, annual sale is 60 lac,what is the Debt collection period: 0.8 months
416. LAFARis submitted by whom?: Statutory Auditor
417. customer service Committee meeting held on: Monthly basis
418. For Housing Loan of Rs.30 lac, Riskweight is: 50% if Loan to Value Ratio is up to 75%.
419. Advance payment for import of goods is allowed up to ------------ without guarantee of an international bank: US
$50,00,000
420. Compoundingof interest in FCNR(8) Nc if deposit remain for more than one year: after every 180 days
421. In the case of financing working capital requirement of Small Manufacturing Enterprises,Turnover method of Nayak
Committee is applicablefor working capitallimits upto: Rs.5 crores.
422. In a letter of credit, it is written that documentscan be negotiated about 30th June. In this case,the documents can be
negotiated: Before or after 5 days of 30th lune.
423. Advance given for setting up Cold Storage for storing agricultural produce will be treated as part of priority sector
provided the unit is located: Anywhere in India
424. NREFixed Deposit is issued normally for maximumperiod of : As per bank discretion
425. A crop will be consideredas Short Duration crop, if the crop seasonis up to : 12 months
426. If value of a security in a account deterioratesso much that its realizable value is less than 10% the outstanding, the
account shall be directly classified to: Loss assets
427. How much foreign Exchangecan be retainedby a resident individual returning from abroad: US$ 2000
428. The concept of adding more peopleto bankingat affordable cost is called: financial inclusion
429. Maximum amount of cash that can be acceptedfor issueof foreign currency at present is: Rs 50,000
430. A person wants to open a joint account with his wife in such a way that the account can be operated by him only during
his lifetime and she should be able to operatethe account only after his death. The account has to be opened with the
instructions: 'Former or survivor',
431. In case of agricultural advances no duescertificate is not required from small and marginalfarmers as per RBI guidelines
for advancesup to: {J /?to "My ~0Ltv.:t
432. Amount that can not be paid in cash in respectof term deposit by the bank as per Income Tax rules: Rs 20,000 and
above.
433. Expand LAN: local Area Network
434. In case of doubtful accounts more than 2 years old the provision is required to be made at the rate of: 1000/0 for
unsecured portion plus 400/0 for secured portion (After the account has completed 3 yearsas doubtful, the rate of
provision is 100% for secured portion also.)
435. For wrongful dishonour of the chequethe bankis liable to: the drawer of the cheque
436. In the case of purchase of NPAsby one bank from the other, the purchasing bank can sell NPAto other bank after: 12
months from date of purchase
437. Maximum amount of education loan for studiesin India that is covered under Priority sector where no collateral security
and no margin required at present is: Rs 4.00 lakh
438. in case of loan against bank deposit chargeis created by: assignment
439. in case of loan against NSC,charge is createdby: assignment
440. What is cash loss: net loss before depreciation (Net loss minus depreciation)
441. Why fund flow statement is taken from the borrower?: To know sources from where funds have been raised and
how funds have been utilized and to know changes in net working capital position.
442. Under Prime Minister Employment Guarantee Programme (PMEGP),the maximum cost of the project/unit admissible
under manufacturing sector is: Rs. 25lakh. (under businessand service sector Rs 10 lakh)
443. Stand by LC is just like: Financial guarantee (A guarantee of payment issued by a bank on behalf of a client that is
used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standby
letters of credit are created as a sign of good faith in businesstransactions, and are proof of a buyer's credit quality and
repayment abilities)
444. A unit in service enterprise is consideredas medium if the investment in equipment is: more than Rs 2 crore but up to
Rs 5 crore.
445. Banks print cheque books having similar particulars.The format of cheque is prescribed by which Act : Not defined in
any Act. It is as per practice .
446. Which crossing takes away the feature of assumptionof defective free title available to the transferee: Not negotiable
crossing
447. Who is appointed to tackle public complaintsagainst the public authorities: Ombudsman
448. What is the maximum loan that can be allowedto a dealer in cattle feed / poultry feed, for treating the same as indirect
agricultural advancewithin priority sector: Rs.SOO lac
449. An NRI can open a joint account with a residentin case of _ accounts: NRO/NRE/FCNR. (For ~R~~FCNR on. ~/S)
450. The facility of nomination is not availableto Trust account because it is __ account : Non-indiVidual (faCility of
nomination is available only in the caseof individual(s).
451. In 8 region, the reply to letters in Hindi is to be given to the extent of __ % : 1000/0
11
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)
452. Within priority sector target of 40% of Adjusted Net Bank Credit or Credit equivalent of Off BalanceSheet Exposure,
whichever is higher, the sub-target for weaker sectionis : 250/0 (of PSadvances)
453. Current ratio indicates of a firm: liquidity
454. The true owner of a cheque has been deprived of his right by collection of the cheque for a different person.This is called
: Conversion
455. Banksprovide term loans and deferred payment guaranteeto finance capital assets like plant and machinery.What is the
difference between these two: Outlay of funds.
456. For the purpose of creation of equitable mortgage,the placefor deposit of the title deed is notified by : State G~vt
457. As per recent RBI/Govt. guidelines, pensionerscan open account jointly with: spouse, to be operated as either or
survivor or former or survivor.
458. Amount of maximum loan given to micro and small enterprisesthat is covered under CGFTMSEscheme: Rs.l00 lac
459. The R-returns are submitted by the banks to RBIon : Fortnightly basis (15th and last day of the month)
460. A loan associatedwith a short duration crop, becomessub-standard after remaining special mention accountfor a period
of : two crop seasons
461. If an SSI units holds a margin of Rs.20 lac and its projected sales are RsAOOlac, its working capital limit will be
Rs.801ac
462. Customerday is observed by banks at what periodicity?:once in a month (15th day of every month)
463. While paying a bearer cheque, signatures are obtained on the back side of the cheque. Why ? : As evidence of
payment
464. Sales/ debtor ratio is called __ ratio. It indicates__ : Debtor-turnover, efficiency of collection of debtors
465. Authorised capital is Rs.10 lac. Paid up capital Rs.6 lac. The loss of previous year is Rs.1 lac. Loss in current year is Rs3
lac. The tangible net worth is : Rs.2 lac
466. Whether Minor can nominate? no. On his behalf nomination will be done by a person legally competent to act
on his behalf.
467. Number of days allowed to opening bank and negotiating bank to verify that documents are as per terms of LC is: 5
banking days each
468. Chequeis dated before date of its presentation is called: Antedated cheque
469. Riskarising on account of mistakes done byhuman beingsis called: operational risk
470. Account of a Foreign correspondent bank abroad opened with domestic bank is __ account for the domestic bank:
Vostro (it will be nostro for the correspondent bank)
471. The capital adequacy ratio is computed by the following formula: Capital/Risk Weighted Assets
472. An endorsement in which endorser excludes his liability is called: sans recourse
473. When a company is financed against the security of hypothecation or mortgage of its movable property, the company is
required to file particulars of charge with: Registrar of Companies (no registration of charge required for pledge).
474. In the case of hypothecation: both possession &ownership is with borrower
475. Who is called as Holder as per N I Act?: Who is entitled to possession of the instrument in his own name (actual
possession is not necessary).
476. If a cheque is dishonoured due to insufficient funds, then as per section 138 of N I Act, court may award imprisonment
up to: 2years
477. On the face of a cheque, the name of a bank is written without two parallel lines. This will amount to: special crossing
478. Nc payee crossing is defined in : it is not defined in any Act. It is as per practice
479. Refinanceagainst eligible export finance is availablefrom :RBI
480. If stock statement is not submitted for 3 months from its due date and DP is allowed on the basis of old stock report,
then the account will be considered NPAafter:90 days
481. Limitation period for mortgage :12 years
482. Loan is in the name of A&B. Both have signed documents.A signs the BalanceConfirmation but B does not. In this case
limitation will extend against: both
483. White plastic is called : Counterfeit card
484. Nomination facility for deposit accounts is availableunder: 45ZA & 45 ZB of the BR act
485. NREa/c holder can open which type of accounts?:SB/CA/RD/FD
486. If a bank is oversold in foreign exchange and foreign currency is appreciating : bank will incur loss
487. Interest rate on Saving Bank is fixed by : Banks themselves w.e.f. 25.10.11
488. What are the Service charges for using ATMs of other banks for balance enquiries: Nil upto 5 transactions ( 3 at
Metros)
489. Term deposit can be opened for a minimum period of: 7 days
490. A cash credit account will be treated as NPAif the CClimit is not renewed within __ days from the due date of renewal:
180 days.
491. Maximum amount of deposit which a bank may ask while allowing locker facility to a customer: Advance rent for 3
years and locker breaking charges
492. An Authorised Dealer can allow remittance up to __ to a resident individual for remittance abroad under Liberalised
remittance scheme? ..... .. ' . ... . •

12
 A K GUPTA'S B~NKERS TRAINING INSTITUTE {(75, Block 8G - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)
N S TOOR S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 330, Chandigarh 160020; 0172 2665623, 09317812720)
493. A solicitor has account in his name and in the nameof his client. Garnisheeorder is received in the name of the solicitor.
Whether the same will be applicable in the nameof client also: No because two accounts are not in the same right
and same capacity.
494. An advance to a farmer against warehouse receipt of his crop will be treated as direct agricultural advance provided:
amount of advance is up to Rs 50 lakh and up to 12 months.
495. Which of the following is not a material alteration?Changing bearer to order
496. What will be the tangible net worth if total assetsare Rs 35 crore; total outside liability Rs 30 crore; intangible assets Rs
3 crore: Rs 2 crore
497. A bill issued without considerationis called: Accomodation Bill
498. There is a joint account in the name of A &B. A chequeis drawn by A but the alteration in the amount is authenticated by
B. Whether bank can pay the cheque: Yes provided the operation is either or survivor.
499. A clean bill of lading means: a bill of lading in which the condition of goods or packing is not stated to be
defective.
500. What is negative Lien?: A declaration by borrower that he will not sell or create charge of any body on a
particular asset without consent of the bank
501. Why banks do not grant loan to a minor?: A minor is not competent to contract. Therefore, loan given to a
minor can not be recovered.
502. The term used for conversionor transfer of property derived from a criminal offense for the purposeof concealing, or
disguising, the illicit origin of the property is called: Money laundering
503. In which of the following situations bank will not be a holder in due course?: When bank credits the account of the
customer after receipt of funds on account of cheque sent for collection
504. Under SRMSscheme, loan application for projectsup to Rs 25,000 should be disposedoff within: fortnight
505. The rate at which RBI rediscountsthe usancebillsof banks is called: Bank Rate
506. Normally bank can not grant advanceto its directors.However, there are certain exemptions to this rule. Thus a bank can
grant a loan to its director against the securityof: Government securities, life insurance policies or fixed deposit;
507. Which of the following is not true about RBI (a) RBI announces credit and monetary policy (b) RBI maintains forex
reserves (c) RBI allows ways and means advanceto central Govt (d) Banking Secretary of Union" Govt is the
Governor of RBI: Ans is (d)
508. Who is related to famousGrameenBankfor upliftment of poor people : Mohd. Yunus
509. What is the economic unit for financing milch animals?:,2.minimum two animals should be financed.
510. SAFTAis related to :TRAOE
511. In the case of IPO, the company is requiredto allot sharesor make refund within: 30 days of the closure of the issue
in case of fixed price public issues; 15 days in case of book built issues and 15 days in case of right issues
512. Bankcan charge collectioncharges of not more than _for outstation chequesof Rs10000to Rs 1 lac in saving bank: Rs
100
513. At which of the following placesStock exchangeis not located? (a) Kanpur (b) Ludhiana (c) Indore (d) Allahabad
514. What is the period of 1i" Five year plan :2012-2017
515. Shanti Swaroop Bhatnagaraward is relatedto : Science & Technology
516. What are the charges that can be charged by banks for Inward RTGS / NEFT / ECS transactions: Nil. These
transactions are provided free of cost.
517. What are the Chargesfor RTGSof Rs 2 lac to Rs 5 lac : Not exceeding Rs.25 plus service tax
518. Which of the following states have maximum literacyrate in the case of women: Kerala
519. EUROis the currency of: European union
520. Headoffice of NABARDis located at: Mumbai (SIOBI Head Office at Lucknow)
521. HeadOffice of Asian DevelopmentBank is locatedat: Manila (Philippines)
522. What is the salary of Presidentof India?: Rs 1,50,000per month. (On 11 September2008 Governmenthas increased the
salary of Presidentto Rs 1.5 lakh effective since2007)
523. Which of the following is not related to banking?(a) HDFC (b) 100 (c) Yes (d) SBI (e) SEBI
524. What is true about DR! target?: two third of DRI advances should be made through rural and semi urban
branches.
525. Which of the following chequescan not be paid by the bank? : A cheque on which signatures of drawer have been
forged irrespective of the cleverness in forgery and though these appear to be same as that of the drawer.
526. What is the minimum and maximum period for which FCNR(B)deposit can be opened?: 1 year and 5 years.
527. What is true about operation in NROaccount by Power of Attorney granted in favour of a resident by the non resident
individual account holder?: He can not repatriate outside India funds held in the account other than to the
non-resident individual account holder nor to make payment by way of gift to a resident on behalf of the
nonresident account holder or transfer funds from the account to another NRO account.
528. Which of the following accountscan be openedas NROaccount? SB/CA/RD/FD/AIIof these
529. In the case of Post shipment finance in Rupeesupto 30111 June 2010, concessionalrate of interest i.e. BPLRminus 2.5% is
allowed up to: transit period in case of demand bills and up to 180 days in the case of usance bills.
530. For being considered for Corporate Debt RestructUring,the account should have been classified as: Standard or Sub
Standard or Doubtful account and not loss account.

13
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 01165476949,09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER&: STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)
531. For enforcing right under SARFESAIAct, in the case of consortium advances, consent of which bankers is required?:
consent of 600/0 bankers by value is required.
532. For capital adequacypurposes, risk weight for personal loans is : 125%
533. A house loan has been granted which falls in the risk weight category of 50%. If this loan has been made for Rs 100,
how much capital bank is required to bring for this housing loan? : Rs 4.5 (Banks are requiredto have capital ad~qua~
ratio of 9%. It means for risk weighted assetof Rs 100 bank is required to bring capital of Rs 9. Sincethe risk weight In
this case is 50% the risk weighted assetsfor a loan of Rs 100 are Rs 50. Capital requirementis Rs 4.5 i.e. 9% of Rs 50.)
534. A bank can make appeal against the award of Ombudsman within: 30 days of receiving acceptance from the
complainant. st
535. If on a letter of Credit, date is mentionedas "end of the month", then as per UCPOC600, it will mean: 21 to last day
of the month.
536. As per Official language Policy, in Region"C", how much percentage of the Sign Boardsshouldbe in Hindi?: No specific
target.
537. At present banks are required to maintaincapital adequacy ratio of 9% and Tier II capital shouldnot be more than Tier I.
It means that banks are required to bring Tier I capital of at least 4.5% of the risk weighted assets. With effect from
which date, banks will be required to bringTier I capital of 6% of the risk weighted assets?:31st March 2010.
538. What is the target for export credit within the priority sector target of 40% for domestic scheduledcommercial banks in
India?: Nil.
539. For making reference under CDR,what shouldbe the minimum outstanding amount?: Rs 10 crore
540. FlU stands for: Financial Intelligence Unit (India)
541. A bank purchases NPA from other bank. The risk weight to be assigned by purchasing bank on this account will be:
100%
.542. Subordinated Debt which is a componentof Tier II capital, is shown in the balance sheet as a part of: Other Liabilities
and Provisions on the liability side of the Balance Sheet.
543. If current ratio is 2: land current liability is Rs 20,000, the current assetswould be: Rs 40,000
544. As per section 18 of the N I Act, if the amount written on a cheque in words and figures differ, then what amount should
be paid by the bank?Amount written in words.
545. As per Micro, small and medium enterprisedevelopment Act 2006, a small manufacturing enterprise is one in which
original investment in plant and machineryis: more than Rs 25 lakh and up to Rs 5 crore.
546. Star series notes have been issuedfor: replacement of wrongly printed notes (these are issued in the denomination
of Rs 10, Rs 20, Rs 50, Rs 100 only).
547. Converting a physical cheque to electronicform and sending only image of the cheque to the paying bank is called:
Cheque Truncation
548. Which of the following represent Debt ServiceCoverage Ratio: (Net Profit after tax + Depreciation + Interest on
Term loan) divided by (Annual instalment of term loan + interest on term loan)
549. While flnandnq seasonal industries, which method should be adopted for fixing working capital limits?: Cash Budget
Method.
550. Two cheques have been presentedto you as paying banker. One is dated prior to openingthe account and other is dated
prior to issueof cheque book. What will you do as paying banker?: Both cheques will be paid.
551. The projected annual sale of a unit is Rs 4 crore. In case margin is Rs 20 lakh, what will be the amount of limit sanctioned
to the borrower under Trunover method?:Rs 80 lakh.
552. Under SGSYScheme, how the instalmentshould be fixed?: Repayment instalments should not be more than 50
percent of the incremental net income expected from the project.
553. In the case of restructuring of SMEwhichtype of accounts are not eligible for restructuring?: Loss accounts
554. CDR covers which type of accounts for restructuring?: Accounts of corporates dealing both in industrial and non
industrial activities.
555. Under LiberalisedRemittance Scheme,·whichof the following is true?: a) Remittance can be made by individual only b)
Remittance can be made for permissiblecurrent account and capital account transaction. c) Remittancecan not be made
by Trust or Partnershipd) If remittanceis to be made no credit is to be provided e) all of these
556. Why IT Buying rate is higher than the BillsBuying Rate?: As Nostro account of the bank is credited earlier before
making payment to the customer.
557. UCPDCis issued by: a) ICC b) RBI c) IMFd) any of these: ICC Paris.
558. If in a lC words around is written with date then variation of _is allowed in the period: +l : 5 calendar days
559. Expand IRR : Internal Rate of Return
560. Sensexof 30 scrips is related to: Bombay Stock Exchange (BSE)
561. Sub-prime is an risk. (Operational and Credit Risk)
562. KYC and flU in India are associatedwith: preventing money laundering
563. The net worth of Asset ReconstructionCompanyshould be: 15% of the assets acquired or Rs 100 crore whichever
is less.
564. The Exposure norms for a single borrower in normal case and when financing to Infrastructure are: 150/0 and 200/0
respectively of the capital funds of the bank.
565. Who is not promoter of GBIl: RBI •••.

14
 A K GUPTA'S B~NKERS TRAINING INSTITUTE ((75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)
N S ~OOR S INsr:rrUTE OF BANKING CAREER 8r. STUDIES(SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)
566. A minor was given loan. On attaining majority he acknowledges having taken loan and promises to pay. Whether the
loan can be recovered?: He can not ratify the contract. Hence recovery not possible.
567. In "Option" contracts, partieshave: rights to buy or sell only but not obligations.
568. Post-harvest advancesgiven to agriculture form part of direct advance if given for a period of 12 months upto what
amount? : Rs.SOlac.
569. Under CGFT,for loans more than Rs 5 lac but upto Rs 50 lakh, 80 % guarantee cover is available for: Loan to Micro
and Small enterprises in NE States, Women.
570. Which one does not match in respectof reservation to SC/STs: 40% in the case of SJSRY, as in the case of SJSRY
the target for SC/sr is in the ratio of composition of population. '
571. Articles of Associationmentions:directors' powers
572. What are Junk Bonds?: Illiquid bonds
573. A loan was sanctionedagainsta vacant land. Subsequentlya house was constructedat the site. What security is available
now to the bank? : Both
574. Garn~sheeorder is not applicableon: (a)cash received after two hours of receipt of Garnishee order (b) amount
received for safe custody (c) undrawn balances in cash credit accounts
575. For repayment under global credit card of an NRI, which account can be debited: NRE
576. Preoperativeexpensesforms part of the following: Intangible assets
577. As per Basel-II, RBI has recommendedadoption of __ approach for operationalrisk: basic indicator approach
578. A person having locker has expired. The nominee comes. A sealed cover is found. What will you do ? : It will be
delivered to him as part of locker contents without opening the packet.
579. A loan account was restructured. First payment was due on 31.12.2005 and payment was promptly made on 30.12.2005
and thereafter the accountwas regular for 12 months. The account can be treated as standard from: 31.12.2006
580. A bill was presented on 10.5.2005and accepted on 12.5.2005. The bill was due for payment on 29.07.2005 and was
returned. The last date for filing suit in this case is : 29.07.2008
581. A listed bank has to prepareand publish balancesheet on quarterly basis as per: SEBI guidelines
582. A small scale unit (manufacturing)can be treated as micro unit if the original investment in plant and machinery does not
exceed: Rs.2Slac " ..
583. A service unit can be treated as small scaleservice unit if the original investmentdoes not exceed: Rs.2 cr
584. A and B raised a loan jointly and both are liable jointly and severally. When the limitation period is approaching, A
acknowledges the debt while B was away from India. Limitation expires before B comes to India and after coming, he
denies acknowledgingthe debt. Bankcan proceedfor recovery of the loan as per limitation act from: Both
585. There are certain instrumentsdefined as negotiable instruments under law and certain instruments used as negotiable
instruments as per practice. Whichof the following is not a negotiable instrument as per NI Act: Dividend warrant
586. On repayment of debt of a company,satisfaction of charge should be filed with ROCwithin: 30 days
587. A foreign bank with lessthan twenty branches in India which did not meet the targets under priority sector advances has
to deposit the amount of short-fallwith: SIDBI
588. A Trust Deed is silent about loans by the trust. The trustee approachesfor a loan. Under these circumstances what
should the bank do?: No loan can be raised
589. Maximum amount of loanthat can be sanctioned under SGSYis: No ceiling
590. Reservefor contingenciesare shown in the BalanceSheet under: Own funds
591. Prudential accounting norms include: asset classification, income recognition, provision norms.
592. Which of the following un/under-starnped document can not be revalidated by paying penalty: None of these as all
documents can be revalidated.(However, as per question Demand Promisory note cannot be revalidated).
593. A person of 65 years of agecan not nominate which of the following persons:Trust
594. A forex dealer forgot to note a purchase in his book which was detected after 15 days. It is a type of __ risk:
operation risk
595. The aggregate limit for capitalmarket exposure of a Bank is: 40 % of net worth at the end of previous year
596. Which of the following was formed first of all : (a) DRT (b) Lok Adalat (c)SARFAESI (d) CDR
597. Which of the following is not an acknowledgement of debt: (a) written acknowledgementof debt (b) details of debt
mentioned in insolvencypetition (c) part payment of debt as per standing instructions (d) mention of debt in a
communication to another person. : None of these
598. A minor approachesfor a loan. Which type of loan can be given to him: loan can not be sanctioned other than for
necessities.
599. An LlC is expiring on 10.05.2008. A commotion takes place in the area and bank could not open. Under these
circumstances can the LC be negotiated?: The L/e can not be negotiated because expiry date of LC can not be
extended if banks are closed for reasons beyond their control.
600. A loan of Rs.7 cr was givento a corporate for agricultural activities. How much is eligible to be taken as direct agriculture
advance: Nil as entire advance is indirect agricultural advance.
601. A public limited company can start business after receiving from Registrar of Companies. Certificate of
commencement of business. .. • •
602. Which of the following doesnot match in banker/customer relation: Locker fa~lhty - Bailee/Bailor .
603. Investment in perpetual bondsis risky because: the interest is not payable if the CRAR falls below the stipulated
target.
15
 A K GUPTA'S BANKERS TRAINING INSTITUTE «7S, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 330, Chandigarh 160020; 0172 2665623, 09317812720)
604. Maximum loan for cover under CGTMSE: Rs.l00 lac
605. Committee on Proceduresand PerformanceAudit of PublicServices(CPPAPS) was headed by: S.~. Tarapore
606. Customer servicecode has been mentioned in : Banking Codes and Standards Board of India.
607. What is callablesecurity: which can be called at any predetermined date.
608. Servicetax not applicableto service provider up to : Rs.l0 lacs
609. An exposure is called Retail Exposureas per implementation of.BaselII, !f it is not ~ore ~ha~:~ cr~re. .
610. ALM not responsiblefor: achieving budgets and targets (It helps In managIng lIquidity risk and Interest rate
risk).
611. Voting rights to an individualshareholder in Private banks not to exceed:10 % (being increased to 26%) .
612. If there is no mention in LC regarding type of Bill of Ladingthat will be acceptable,then as per UCPDC,bank Will ask for:
On Board Bill of Lading.
613. Which of the following is a subsidiary of Standard & Poor?CRISIL
614. Borrowing outside the country affects: capital account (As per FEMA,Capitalaccount transactions are those transaction
which result in changeof assetsor liability)
615. While undertaking technical appraisal, the following is not considered: cost of production and sales (it is used for
economic viability).
616. A loan is given by the bank on hypothecation of stock to Mr. A. Bank receivesseizure order from State Govt. What
should bank do?: Bank will first adjust its dues and surplus if any will be shared with the Govt.
617. PI in RTGSis: Gateway of partidpating bank
618. Main server of Swift in India is located at : Mumbai
619. Cheque received in clearing signed by whom will not be passed out of the following: signed by a person who has
been declared insolvent.
620.. Whether a customer can approach Ombudsman without first approachingthe Bank : Approaching the bank first is a
. pre-condition.
621. Which currency is having highest value : GBP
622. For foreign banks with less than 20 branches in India, for which of the following segments, there is no target under
priority sector advances:Agriculture, Export Credit, Small enterprises
623. Hindi day is celebratedon : 14 Sep
624. Call money is availablefor: one day
625. Riskweight on HousingLoanswhere Loan to Value ratio is up to 75%: up to Rs.30 lac SOO/oand above that 75%
626. Banksare required to maintain Minimum and maximum CRARof: Min 9% in India. There is no maximum.
627. Under RashtriyaKrishi BheemaYojana which type of risk is not covered: War & Nuclear risk.
628. X is guarantor for OD given to A. Balance is Dr. Rs.125000.X wants to withdraw from the guarantee: The guarantor
will be liable for the amount outstanding as on the date of expiry of notice period. Limits will be continued
if alternative security is offered to bank's satisfaction.
629. 3 partners Signeda document on 3 different dates. Limitation period starts from: Date of last signatures.
630. Acknowledgementof Debt can be obtained for how many number of times: No limit
631. Sealed packet is found in locker while giving the contents to nominee: It will be delivered to nominee without
opening the packet.
632. When a Bank will not be called holder for value: When bank credited the amount of cheque only after realization
of the cheque
633. A cheque is written in different handwritings / inks: Bank will pay if otherwise in order.
634. In case a forged note is detected in the cash tendered at bank counter, what should the bank do?: The Note should be
impounded and not returned to the tenderer.
635. Why Buying rate in case of foreign currency is worse than rate in case of buying cheques?: Because Holding cost of
currency is high.
636. If a guardian is appointed by court, minor will becomemajor at the age of: 18 years
637. A Chequewith forged signatures is presented for payment and is paid. Bankwill be liable to: Customer (Drawer of the
cheque)
638. In saving accounts,interest is calculated on the basisof: daily product basis.
639. Protection is availableto the collecting banker in case of: Crossed cheques
640. In the .ca~eof a.d.vanceto ~ limi.ted company for purchase of vehicle, the charge is registered with Regional Transport
Authority 10 addition to registration of charge with Registrar of Companies.Why this is done?:So that borrower can
not sell the vehide without intimation to the bank
641. Wh~ banks prefer financing of bills?: because the advance is self liquidating
642. Ma~lm~mamount of deposit in Tax Saving Schemeof the bank can be: Rs 1,00,000
643. ~hlch ISnot a G~neralCrossing: Name of a bank written between two parallel lines
644. Risk related to failure of Computer System is called: Operational Risk
645. The Borrower has to bring funds as his contribution for loan from: Long term Sources
646. In ~he~se of GoI~ Cardfor ex~orters, the stand by limit is:20% of the limit sanctioned
647. If tlme.'s not men~lonedon a Bill of Exchange, it will be payable: on demand
648. Subordinate Debt ISshown as part of _ in the BalanceSheet of a bank: Other Liabilities and Provisions

16
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623,09317812720)
649. A term deposit hasbeen issued in the name of Mr A and Mrs. A payableto either or survivor. One day both approachthe
bank and request for replacement of their names with the namesof their children. What should the bank do? Bank can
not accept the request as name of one of original depositors must remain.
650. Format of Chequehasbeen prescribed in which Act?: None because it is as per Practice and Usage
651. Banks which provideForeign ExchangeServicesare called: Authorised Dealers
652. NOSTROaccountmeans:Our account with You (Account of a bank operating in India with a banker abroad in
foreign currency)
653. In an account of Oub with you, cheque has been been presentedfor payment signed by the secretary who has died.
What shouldthe bankdo?: It will be paid if it not dated subsequent to date of death.
654. Maximum loan to an individual against sharesin demat form: Rs.20 lac
655. Who can open RFCaccount: Person returning to India after staying abroad for a minimum period of 1 year.
656. Garnisheeorder is applicablefor: credit balance in OD and not for cheque sent for collection.
657. Bank Guaranteesare issuedas per provisionsof: Indian Contract Act
658. Formation of consortium,when essential: When bank touches its exposure ceiling
659. cheque truncation means: converting physical cheque to electronic image and stopping physical flow of a
paper cheque.
660. Foreign currencypaidto taxi driver, shop keeper, can be acceptedby: Authorised persons.
661. As per Basel II, banks are required to bring capital for _risk in addition to capital for credit risk and market risk:
Operational risk
662. A bank cannot acquire either as owner or as pledgee shares in a company more than: 10 % of paid capital of the
company or 10% of the paid up capital and reserves of the bank, whichever is lower.
663. Subprimecrisis means: Problem created by lending to borrowers not meeting the credit rating criteria.
664. For formation of a company, Registrarof Companieswill issue : certificate of incorporation
665. My uncle gave me gift of USD 20000. How much of it can be depositedin EEFC?:Nil. It can be placed in RFC (D)
account. In EEFCaccount export proceeds are credited.
666. In the case of Manufacturing units, it will be considered as micro enterprise if the original investment in plant and
machinery does not exceed Rs __ and small if investment in plant and machinery does not exceed: Rs.25 lac;
above Rs.25 lac to Rs.5 cr.
667. There is a joint accountin the name of A & B payable to either or survivor.On the death of A, the amount will be payable
to (a) nominee (b) B, the survivor.
668. Co is in liquidation,funds are at the disposalof : Liquidator
669. Guardianappointedby will of the father is called: testamentary guardian
670. Internal audit is meant for: internal operational check ups
671. Committee on FinancialInclusion was headedby: C. Rangarajan
672. Statutory Audit of banksis done as per provisionsof: Banking Regulation Act
673. Provisionfor standardloan assets other than direct Agriculture & SME,CommercialReal Estate& housing loans at teaser
rates is : 0.4% of global balance
674. The bill is dated 15/03/04, the date of acceptance: 20103/04. The bill retumed unpaid on 25/03/04. The limitation period
will be availableup to : 25/03/07
675. A letter of credit which is issuedon request of the benefldary in favour of his supplier: Back to Back LC
676. Which of the following documents does not constitute document of title to goods: Airway bill
677. State Govt loan can be treated as NPAif alc is overdue for: 90 days
678. Current Ratio = 2:1, Net working Capital=60000, What is the Current Uability of the firm? : 60000
679. As per internal policy of certain banks, the net worth of a firm does not include: a. Paid up capital b. Free Reserve c.
Share Premium d. Equity receivedfrom ForeignInvestor: Revaluation Reserves
680. DD can be revalidatedwithin: any time (practice may differ in different banks)
681. Which crossingis a SpecialCrossing: Name of Bank is written in the cheque with or without parallel lines
682. Within priority sector,for repair of house, how much loan can be allowedto an NRI in an urban area: 5 lakh .
683. Supervisionof banks is done by RBI under which act: RBI Act I BR Act I Jilani Committee Report I NI Act: Bankmg
Regulation Act
684. Under RTGS,what is PIs: Member Interface provided to member banks by RBI
685. In account openingform as well as in nomination form, whose signatureshave to be obtained a) depositor b) nominee:
the depositor has to sign himself. Nominee's signatures are not required/obtained.
686. A minor is aged 15 years, who is illiterate. Which type of self operatedalc can be opened -SBI RD I FD : none
687. Which of the following can open SB a/c? State ElectriCityBoard/ Indian Bank Association/ Municipalcorporation: Indian
Bank Association.

17
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER 8r. STUDIES(SCO34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)
688. A lady who has taken a demand loan against FD come to the branch and wants to add name of her minor son, as joint
a/c holder. What you will do?: Name can be added only after adjustment of the loan. . .
689. During death claim settlement for a locker with nomination, you find one sealed packed. What you will do: Dehver the
sealed packet without opening it.
690. In a Flying club, the Secretary& Treasurer are authorizedto sign. A Chequeis ~resente~fo~ payment.acr~ssthe counter.
In between it has been informed that Secretaryhas died, what you will do? : Will be paid, If otherwise In order
691. Option is right or obligation: A right with the buyer of the option to buy or sell and an obligation of the option
seller to do what he has agreed to do.
692. Under SGSYwhich is not correct: 1) SHGmembers 10-25 2)50% SC/ST3) 50% SUBSIDYUNDERSHG: SHG members
10-25
693. Discontinuationof ServiceArea Approach is as per recommendationsof : Vyas committee report
694. Revival of limitation for recovery of a time barred loan is possible by: obtaining fresh promise to pay under
provisions of Indian Contract Act.
695. LFAR returns relate to: Statutory audit
696. Spreadin the context of bank profit loss account means:Interest earned - interest expended
697. A Foreign bill purchased has been returned unpaid. Which rate would be applied to reverse the transaction: 1T Selling
rate
698. Guaranteeissued by a bank in favour of Customdepartment that party will fulfill export obligation for availingexemption
from custom duty regarding tax. Such guarantee is called: Financial Guarantee
699. As per Supreme court decision, HUFcannot be a partner because: HUF is not a natural or legal person.
700. For foreign bank with less than 20 branches in India, what is the target for priority sector advances: 32% of ANBCor
Credit equivalent of Off balancesheet exposure,whicheveris higher.
701. As per Prevention of Money laundering Act, preservationof records relating to closed accounts upto: 5 yr from date of
closure of account.
702. Which type of documents under LCare preferred?A. On board bill of lading B. Clean Bill of lading C. Clausedbill of lading
: On Board & Clean Bill of lading
703. Particularsof satisfaction of charge by a companyare to be filed within: 30 days from date of adjustment of loan.
704. In a company, the registration of charges is required for: a)loan against FD b)lien on Govt Securities c) assiqnrnentof
BookDebtsd) lien on Shares : Book Debts
705. Loan Delivery System is not applicableto: a) Loanto Soft ware industry b) export credit: export credit
706. Forgedcurrency note: not to be returned & should be impounded
707. QuickAssets= Current assets - Stocks (prepaid expensesalso to be deducted)
708. Foreign ExchangeTransactions are settled through: a. Nostro a/c b). Vostro elc: c)Loro elc d) all a.b,c e) a & b :
Nostro account
709. Immediate Credit up to 15000 is provided to a) Company; b) Partnership Firm c)Club a/c d)Proprietorship;e) None of
these :Proprietorship
710. LeverageRatio in case of a firm, indicates: Solvency of the firm
711. Bankscan provide information about the customer to another Bank: General in nature, without any responsibility
712. Stamp duty in usance bill of exchange: 0.25 per 1000 / 0.75 per 1000 / 1 per 1000/ none: It is according to
value and time i.e. Advalorem (it is Rs 0.65 per Rs 1000 up to 3 months usance)
713. Company'sborrowing powers arise out of: Memorandum of Association
714. Property equitably mortgaged on 08/03/08. A registeredmortgaged created on this property, on 05/03/2008 which was
got registered on 08/03/2008. Which will have priority: registered mortgage as it was created earlier.
715. Board of Directors want to borrow money in excess of paid up capital and reserves of the company: can be done
through a resolution passed by shareholders in the general meeting
716. Other than a Bill of exchangeor promissory note, the document which was executed abroad is requiredto be stamped on
its arrival in India within: 3 months of its arrival.
717. Administrator is appointed in case of: to realize assets and payoff liabilities of a person who has died without
writing a will.
718. A company has its registered office at Mumbai, loan granted at Bangalore,Property situated at Delhi. Equitablemortgage
can be created at - a) Notified areas notified by the state govt b) Mumbai c) Bangalore d) Delhi: EM can be created
at Mumbai, Kolkatta or Chennai and any other place notified by state government. Therefore, it can be
created at Mumbai and at Bangalore or Delhi if these are notified by State Govt.
719. A, having S8 a/c with you, deposited Rs.25000.A public Prosecutor sent notice to bank informing that Mr A is involved in
forgery and requested not to permit withdrawal in the a/c. In between one cheque of Rs.20000has been presented for
payment. What should be done by the bank?: Pay the cheque as Public Prosecutor is not authorized to freeze
the a/c.
720. Banksaccepting NREterm deposit above 3 years pay interest at a rate: As per bank discretion.
721. Auth.orisedcapital= 10 lac, paid-up capital = 60%, loss during current year = 50000, loss last year = 2 lacs, what is the
tangible net worth of the company? : 3.5 lac
722. Under.Ombudsman scheme,which type of case not entertained?: advocate representing the customer
723. Preshipment credit is normally linked to : FOB value
724. Which committee is related to Capital account convertibility: S.S.Tarapore committee.

18
 A K GUPTA'S B~NKERS TRAINING INSTITUTE «7S, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 6S476949, 09350476949)
N S T~OR ~ INSTITUTE OF BANKING CAREER & STUDIES (SCO 34, Sector 33 D, Chandigarh 160020; 0172 2665623, 09317812720)
725. Contributionmeans: profit + fixed cost
726. Loansoutside India will affect: Capital account
727. Whic~ of the following is priority sector for foreign bank with less than 20 branches in India? :l)Export finance 2)MSE
3)Agn: all of these
728. Truncated Cheque means: a cheque, the image of which is prepared by collecting bank to collect the money
from paying bank.
729. Service.Area approach has been discontinued except for Govt. sponsored schemes as per recommendationsof: Vyas
Committee
730. Stampduty charged in caseof exprot bill : nil
731. Which of the foll~Wi~gis n~t a valid cheque for paymentby the bank-l)different ink & handwriting 2) chequewith prior
date 3) cheque With Impossibledate 4) Mutilated cheque:Mutilated cheque
732. While doing technical appraisal, which of the following is not considered :Cost of production and Sale (these are
used for economic viability)
733. Whichof the following is part of infrastructure project: Schools& Hospital
734. There is an SB alc in the name of A & B .They have given power of Attorney to 'C' for operation in AIC, The cheque
signedby the 'C' is presentedin the bank after death of 'B' : cheque will not be passed
735. EEFCAIC is maintained as: Non interest bearing Current account.
736. Whichof the following is part of the Solvency Ratios:debt equity ratio.
737. The liability of the drawer of bills of exchange is prime till it is not accepted by the drawee after that prime liability
becomesof Drawee.
738. For initiation action under SARFAESIAct : 60% of the creditors should agree.
739. For making reference under CDRII, consent of 75% of lenders by value and 60% by no. is required.
740. Derivativesare financial instruments,the value of which depends upon other underlying.
741. Nominationcan be done in favour of NRI also
742. In A current account OD of Rs. 12000 is made. The FDRhas become due later on if the right of appropriationcan be
used. The borrower has objected that he never requestedfor overdraft, hence payment can not be appropriated. The
customer is right.
743. Purposeof Debt ServiceCoverageRatio to appraise Term Loan.
744. Whether Pvt Ltd. Co. can be partner with PartnershipFirm: Yes
745. Overboughtposition and the currency is depreciating: there will be loss to the bank
746. For Educationon declaration basis,a sum of $ 100000 can be remitted.
747. For import of goods, advance remittance of Forex is permitted up to US D 50,00,000 without any guarantee
of any international bank. Beyond USD 50,00,000, guarantee of a reputed international Bank is required.
748. FIls stake in Private Bank can be maximum: 49% with the consent of shareholders otherwise it is 24%. (FDI
74%)
749. PCFCabove 180 days, the rate of interest is: as per bank's discretion.
750. Fromwhere banks obtain money for overnight purpose:Call Money Market.
751. There is no minimum CRRor SLRas per RBI Act and BRAct.
752. For classification as indirect advanceto agriculture, investment in Agro based industries in plant and machineryshould
not be more than: None of these as advance to agro food processing industry is classified as Small Enterpriseand not
indirectadvanceto agriculture.
753. Provisionon standard assets to be shown in balancesheet in other liabilities and provisions. Provisionfor NPA is
deductedfrom gross advances.
754. Action under SARFAESIAct can be taken simultaneouslyin DRT/Suit filed cases without taking permissionfrom the
CompetentCourt.
755. FinancialInclusion means: providing banking services at affordable cost to the poor/distressed.
756. CGFTSI: 80% coverage not allowed to SC/Sf (only to beneficiariesin North Eaststates, women benefidaries)
757. BaselII norms to be completed by Foreign banks and bankshavingforeign branchesby 31.03.2008.
758. Objectiveof FEMA:to regulate forex market.
759. In CBS,signatures are loaded through scanning. .
760. What are futures: -sale and purchaseof foreign currencyat a pre determined rate and at a pre determined date.
761. Counterfeitnote received at the counter what to be done?:Impound the currency note.
762. No noting on currency note, directions issued by RBI undersection35A of BRAct.
763. Crosscheque can be paid at counter if presented by other bank.
764. If valueof security is lessthan 50%, then sub standard accountcan be strai~ht wa~ta~~~t~o~~O':UI category.
765. For medicaltreatment abroad how much amount can be remitted on declaration baSIS: ,.
766. DSBReturnsrelate to: Off Site Surveillance .
767. Paymentsof a forged draft. Who will lodge FIR payingor collectingbank: Paymg Bank.
768. Default by borrower in payment is Credit Risk. . . .
769. Encashmentof FDRwith interest - payment can be madein cash.lf I\~~le~sR~:n:n~~~~ccount for 3 years but there is
770. GoldCredit Card can be issuedto exporters who are not on caution I 0 ,
no condition of minimum export turnover. . .
771. Borrowingpowers of board of directors are contained in: Articlesof ASSOCiation
19
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, Paschim Vihar, New Delhi - 110063; Ph 011 65476949, 09350476949)
N S TOOR'S INSTITUTE OF BANKING CAREER 8r. STUDIES (SCO 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720) .
772. Locker can be broken open after notice to the hirer if the same is not operated for: more than three years for medium
risk category or one year for a higher risk category, and the locker-hirer does not respondnor operates the locker.
773. Reservationfor women beneficiariesunder SGSYis: 40%.
774. The Bank did not disclose all material facts regarding loan to the guarantor while obtaining guarantee. ~In ?uaran~othr
escape liability?: Guarantor cannot escapefrom his liability as it is not necessaryto discloseall the matena s racts WI
regards to the loan. . . ...
775. Banks are required to obtain audited financial papers from non corporate borrowersfor granting working capital limit of:
RS.25lakh &above
776. As per RBI GUidelines,the chargesfor closure of bank account before stipulated period should not exceed: not applicable
as banks are free to fix accountclosurecharges
777. 100% Export Oriented Unit can deposit __ % of export proceeds in Exchange Earners Foreign Currency
account.:100%
778. Bank/FIs should submit the list of suit-filed accounts of wilful defaulters of Rs.__ as at end-March, June, September
and December every year to Credit Information Bureau (India) Ltd. (GBIL) and submit the quarterly list of wilful
defaulters where suits have not beenfiled only to RBI: 25 lakh and above
779. If a complainant is not satisfied with the award or his complaint is rejected by the Bankingombudsmen, he can prefer an
appeal to Deputy Governor, RBI within: 30 days of the of the date of receipt of communication regarding award or
rejection of the complaint.
780. The Branch Level Customer Service Committee may meet to study complaints/ suggestions, cases of delay,
difficulties faced 1 reported by customers 1 members of the Committee and evolve ways and means of improving
customer service: at least oncea month
781. Minimum amount of remittance under RTGSis :Rs.2Iakh
782. Original FD is.ln the name of the Husband& Wife for 3 years. After 6 months, both husbandand wife request to replace
the nameJR· the FORwith the nameof their son only: Bankcannot do this since one original applicant required.
783. Tier II capital can be maximum up to : 100% of Tier -1 capital.
784. PerpetualNon redeemablepreferenceshare is a part of: Tier -1 capital
785. The main source of infrastructure finance are: FDI investment, Pensionfunds, Insurancefunds.
786. Main Objectiveof Infrastructure DevelopmentCorporation is : Developmentof infrastructureof the country.
787. The period of 12th Five Year plan is: 2012-2017.
788. A manufacturing unit will be classifiedas medium enterprise if original investment in plant & Machinery is: more than Rs 5
crore but up to Rs10crores. I
789. As per RBI GUidelines, no dues certificate is not required with respect to advanceto farmers up to: U~ PrYl"l A~04vc:r
790. An account was opened on 24.11.2007and the cheque book was issued on 30.11.2007.Two cheques dated 18.11.2007
& 22.11.2007 are presented for payment on 08.12.2007. What should the bank do?: The cheques can be passed if
otherwise in order.
791. In case of wrongful dishonour of cheque, bank is liable to: account holder only
792. In Import business,importer can take delivery of goods: on the basis of trust receipt.
793. Who can seek information under Right to Information Act: Any Citizenof India can ask for information
794. The GarnisheeOrder is applicable on the account of a customer when the relationship between banker customer is:
Debtor & Creditor.
795. A private limited company with Registeredoffice at Bangalore has raised loan from a branch located at Mumbai. For
creating equitable mortgage, title deeds can be deposited at: Mumbai, Kolkatta, Chennaior any other notified place.
796. A ch~ue is presented for payment in which amount in figures is mentioned as Rs 10,000whereas the amount in words is
mentioned as Rs Ten lakh only. In terms of section 18 of the N I Act, what should the bank do?: The amount written in
words should be paid.
797. A ch~ue o~Rs.47001- was presentedfor payment when the balance in the account was Rs. 40001-. On being returned
for lnsuffident funds, the presenter enquired the balance and then deposited Rs.I0001- in the account. Thereafter, the
~heque was passed. The drawer of the cheque has lodged claim against the bank. Is the bank liable?: Yes, the bank is
liable for breachof secrecy.
798. In the.cas~of Hypothecation: neither possesslonnor ownershipcome to Bank.
799. Negative hen means: Undertakingby the borrower not to sell or create charge on a particular property without consent of
the Bank.
800. RecentlyRBI warned banks against charging: excessive interest to small borrowers.
801. NRI can openjoint a~countwith resident in the case of: NRO,NRE& FCNR(For NRE& FCNRon F or 5 basis)
802. Expand NREGS: National Rural EmploymentGuarantee Scheme.
803. A term deposit has been issuedin the name of Mr A and Mrs. A payableto either or survivor. One da both a roach the
bank and request for replacementof their names with the namesof their children. What should the bank dof~ k
not accept th~ request.as nam~ of one of original depositors must remain. . n can
804. ~coeruenltsS
a cre~lt bthalance
In the saving account and there is a overdraft in the current account amounting to Rs 655 Both
are In e same name Bank wants to adi st edit b I .
overdraft. ~ per which right, bank can do this?: Right : se~rOff. a ance of saving bank account towards payment of
805. What conditions have to be satisfied for a loan bel r ibl f
outstanding amount Rs 10 crore and above' accou~;gtoebleglste dordCDR?b: Borrowing from more than one bank; minimum
, an ar , su standard or doubtful.

20
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75 Block BG "
N S TOOR'S INSTITUTE OF BANKING CA' - I, Paschim Vlhar, New Delhi - 110063; Ph 011 65476949, 09350476949)
806 M . . REER& STUDIES(sco 34, Sector 33 0, Chandigarh 160020; 0172 2665623, 09317812720)
. fi aXIn:ulm amoUunst$ofrer:n~ttanceabroad from a NRO account including sale proceeds of immovable property in India in a
manoa year: 1 million.
807. A ~~f~tiating bank and issuing bank are allowed days each for scrutiny of documents drawn under Letter of
cre I 0 ensure that documents are as per LC:5 banking days each.
808. Wbohena letter is sign~ by the borrower and based on that letter bank delivers the document of title to goods to the
r~ower, such letter IS called as: Trust Receipt
809. Which of the following is correct regarding reverse mortgage?: The scheme is available to senior citizens only' the
property should be self occupied by the owner. '
810. How. muc.~ charges are ~harged in addition to normal collection charges and out of pocket expenses for providing instant
credit faCIlity for outstation cheques:Nil _
811. Service Tax is a~plicabl: on which of the following?: exchange, commission, DD cancellation charges, charges for return
of a cheque. It IS apphcable on all of these.
812. A limited. company has registered office at Chennai whereas loan has been raised from bank branch at Mumbai. The
charge Will be registered with the ROC at: Chennai
813. A ~.rtnership firm conducting business other than the banking business has more than 20 members as partners. Whether
thls I.Sallowe?~: Such association is called illegal association as per Companies Act
814. Pac~mg credit IS allowed against letter of credit for: purchase of raw material, payment of wages or power.
815. MaXimum amount of deposit under Tax Saver fixed deposit is: Rs 100,000.
816. What are the rules relating to advance against Kisan Vikas Patra?: It can be granted provided KVP is assigned to the
bank.
817. Bailment of goods to secure a debt is called: pledge.
818. If current ratio is 2: 1, net working capital is Rs 20,000, current asset will be: Rs 40,000
819. Deferred payment guarantee issued by a bank is a : Contingent Liability.
820. If working capital limit to a borrower is Rs 10 crore and above, then as per RBI guidelines, the loan component should be
at least: as per bank's discretion.(earlier it used to be 80%).
821. If the projected sale of a small (manufacturing) enterprise is Rs 80 lakh, margin available with the borrower is Rs 4 lakh,
then as per turnover method, working capital limit will be: Rs 16 lakh.
822. Under Prevention of Money Laundering Act, banks are required to send cash transaction report in respect of cash deposit
or withdrawal of more than Rs 10 lakh in a month from one account within: 15 days from the close of the month.
823. Who is primarily liable on Bill of exchange which has been accepted?: Acceptor (Drawee) of the Bill.
824. A cheque crossed specially to a bank is presented by the same bank to paying bank for cash payment. What should the
paying bank do? Bank can make cash payment.
825. Who can make nomination in the deposit account of a minor?: Guardian on behalf of the minor.
826. Who can be a nominee?: Only an individual
827. If a depositor dies, payment to nominee or legal heirs should be made within: 15 days of completion of formalities.
828. What is the relationship between bank and customer if he has left certain goods with the bank by mistake: Bank is
trustee and Customer is beneficiary
829. Appeal against the award of the Banking Ombudsman can be made to Deputy Governor, RBI within __ days of the
receipt of copy of award from the Ombudsman: 30 days
830. Housing loan in urban area up to __ are covered under priority sector: Rs 25 lakh
831. An agricultural advance will be classified as NPA if: it is overdue for 2 crop seasons in case of short duration crops and for
1 crop season in case of long duration crops.
832. Banks are required to provide minimum % of advance to small enterprises to units in which original investment in
plant and machinery does not exceed Rs 10 lakh in case of manufacturing units and original investment in equipment
does not exceed Rs 4 lakh in case of service enterprises: 40%
833. Registered mortgage of a property was done on 8th Dec 2007 and the same was registered with the Registrar of
Assurances on 12th December 2007. In the meantime, equitable mortgage on the same property was done on 10th
December 2007. Which of these mortgages will have priority?: Registered mortgage which was created earlier.
834. An account was opened on 24.11.2007 and the cheque book was issued on 30.11.2007. Two cheques dated 18.11.200?
& 22.11.2007 are presented for payment on 08.12.2007. What should the bank do?: The cheques can be passed If
otherwise in order.
835. A cheque was dishonoured despite sufficient balance in the account. The bank will be liable to: Drawer of the cheque and
~~~~ee. .. . ..
836. Maximum amount of fine under section 138 of N I Act for dishonour of cheque due to tnsutfklent funds IS. twice the
amount of cheque. . . . .
837. Domestic Commercial Banks are required to finance at least 40% of ANBC to the PriOrity sector. Of the PriOrity sector
advances, how much should be given to weaker section: 10% of ANBC.. . '.
NPA account will be classified directly as loss asset if the realizable value of the primary and collateral security IS. less
838. An
than 10% of the outstanding balance.
839. Corporate Debt Restructure system is not applicable for: Skingsle stlend~r~cckoaunndtssettlement
risk
RealTIme Gross settlement system takes care of which ris : y erruc ns .
~:~: Loan assets are classified by the banks on the basis of : Primarily by record of recovery and by status of security.

21
 A K GUPTA'S BANKERS TRAINING INSTITUTE «75, Block BG - I, PaschimVihar3,
N S TOOR'S INSTITUTE OF BANKING CAREER 8t STUOIES (SCO 34, Sector
3NeOWC::: l~O~:~~~:. ~11~~~~~~~
, Igar, ,
~;;~~~iJ)
842. Under SARFAESIAct 2002 the banks give notice for payment of due amount to the borrower / owner of chargedassets
within __ days, otherwise action will be initiated u/s .1~(2)of the Act : 60 days
843. The minimum & maximum period of certificate of deposit IS: 7 days, 12 m~nths. . .' .
844. Banksprint cheque books having similar particulars. The forma~of cheq~eISp~eSC~lbed ~y WhIC~Act '. I~ I~a pr~~~~~e
845. Which crossingtakes away the feature of assumption of defectivefree title availabe to t e tran eree. 0 neg I
846. Bearer uncrossedcheque can be paid to whom: To the bearer
847. Who is appointedto tackle public complaints against the publicauthorities: Ombudsman. .
848. On, other than a negotiable instrument, what is the time period for payment of stamp duty, If the document ISexecuted
outside India : 3 months
849. May I help you counter is to be provided by bank branchesother than: Small branches .
850. A firm is allowed a limit of RS.1.40lac at 30% margin. It wants to avail the limit fully. How much Will be the value of
security: RS.2lac . .. .. .
851. What is the maximum loan that can be allowed to a dealer In cattle feed / poultry feed, Within priority sector. Rs.500lac
852. An NRI can open a joint account with a resident in case of _ accounts: NRO,NRE,FCNR.
853. RBI keepson changing CRRwith the objective of : Regulationof liquidity to control inflation
854. What is the periodicity for submissionof R-Returnsto RBI: Fortnightly
855. The facility of nomination is not available to Trust account becauseit is __ account: Non-individual
856. Banks are required to make provision on standard assets at the rate of 0.25% on __ & __ accounts : Direct
agriculture and Micro & Small enterprises.
857. In B region,the reply to letters in Hindi is to be given to the extent of __ % : 100%
858. In caseof a jOintly operated joint account, the nominee can obtain payment, when : none of the account holder is alive
859. SGSYschemeis meant for __ in __ areas: BPL,rural
860. Call moneydeposit is part of the _ sector: Organisedsector
861. The long term liability to tangible net worth ratio implies: Longterm solvencyof the firm.
862. Working capital requirement of a firm is required to be met through: Short term sources and surplus of long term
sourcesover long term uses
863. The target for DRI advancesis : No target for DR!
864. What is the maximum period for which an account classifiedas sub-standard,can remain: 12 months
865. A company wants to electronically pay the dividend to large no. of its shareholders,which include small amounts also :
ElectronicClearingServices- Credit (ECS-Credit)
866. Composite Fees in case of CGF-MSEguarantee cover for loans up to Rs 5 lakh in North East, Women or to Micro
enterprise: 0.75% p.a. of the sanctioned limit
867. The terms usedfor hiding money to avoid tax is : Money laundering
868. A cheque is written in different hand-writings and different inks: It will be paid
869. Openingof non-residentaccounts by __ has been allowed by RBI: RRBs
870. Bailmentof goods by a person to another person, to securea loan is called : Pledge
871. When mortgage is created by a person by deposit of title deedorally, it is called __ mortgage : Equitable
872. Which crossingis not a general crossing : When name of bankis written within or without parallel lines.
873. Who can open NREaccount: NRI
874. The minimum capital adequacy ratio implemented in India, by RBI is __ % and as per BaselII recommendationsit is
_%:9%,8%
875. The true owner of a cheque has been deprived his right by collectionof the cheque for a different person. This is called :
Conversion
876. A bank branch receivesa ~ounterfeit note of Rs.1000, which customerwants back. What the bank should do : Impound
the c~rrency.note but credit full amount to customer. Receiptnot to be issuedto depositor.
877. Isla.mlcbankinghas the features of : Conservativebanking
878. Which among.the MU~lims,Christians, B~dhi.sts& J~ins is not a minority community for priOritysector: NO)1f oF
7J..ASe. •
879. When rate of Interest ISexpressedby adjusting the Impact of inflation, this is called __ : Realrate of Interest
880. For the purposeof creat~onof equitable mortgage, the placefor depositof the title deed is notified by : State Govt.
881. Bankscan ask for deposit of advance rent on hiring a lockerfor a period up to : 3 years
882. As ~r recent RBI/Govt. g.uidelines,pensioners can open accountjOintly with: with spouse to be operated as either or
survivor or Formeror Survivor. '
883. Th~ R-returnsare submitted by the banks to RBI on : Fortnightlybasis
884. Apiculture relatesto: Bee-keeping

~~~: ~~~~~~ ;~i~~~O:i~~~e;:~ :~ ~n~:n~w~:ng .is present~, for paymen~: it will be paid if otherwise in order
887. An e t . '11be or a owmq exemptionto a depositor aged 61 years' Form 15 H
to Rs~erprl~ ~uipm:n~~~~r~s medium enterprise providing services,if the investment in _._ is above Rs.2 cr and up
888. The drawer of a cheque wants that the endors h Id .
What type of crossingwO~ldbe required : Not-~~o~~ble n~~~~. defect free title when he receivesan endorsedcheque.
889. The crossingon a cheque ISrequired to be cancelled. Who can do so' Drawer
890. ~':c~e~~~ deposit can be normally accepted by banks for a peri~ of : 1 to 3 years (as per RBI max period bank

22
 A K GUPTA'SB~NKERSTRAINING INSTITUTE {(75, Block BG - I, Paschim Vihar, New Delhi -110063; Ph 011 65476949, 09350476949)
N S TOORS IN~TITUT~ OF BANKING CAREER& STUDIES(SCO 34, Sector 330, Chandigarh 160020; 0172 2665623, 09317812720)
891. A loan associatedWItha short duration crop, becomes sub-standardafter remaining special mention account for a period
of : two crop seasons
892. If an SSI"uni~ holds a margin of Rs.25 lac and its projected salesare Rs.400lac, its working capital limit will be : Rs.75
lac (margm beinqmore, the limit will be lower by that amount).
893. Customer day is observedby banks on __ of the month: 15th
• 894. Minimum no. of daysfor which term deposit can be made by banks: 7 days
895. Under 15 point program of Prime Minister, the no. of minority dominateddistricts in India is indicatedas : 121
896. What type of bench mark is used for lending in banks : BaseRate.
897. The format of chequeis prescribed in which Act : It is only a practice.
898. If a fraud takes placein a bank branch. Report is sent to ROof RBIon form: FMR 1
899. The amount in a cheque is written differently in words and figures and amount written in words is higher of the two :
Amount written in words will be paid.
900. While payinga bearercheque, signatures are obtained on the backside of the cheque. Why? : As evidence of payment
901. In CDRcategory-1,what type of loan accountsare eligible: Standard& sub-standard.
902. Salesj debtor ratio is called __ ratio. It indicates__ : Debtor-turnover,effiCiencyof collectionof debtors.
903. Conversionmeans: unauthorized intervention in the property of another person
904. As per Official languagepolicy for B region, branch target to reply in Hindi letter received in Hindi is : 100%
905. Risk weight for bill purchasedunder LC,for capital adequacy purposesis : 20%
906. What is the right of nominee in case of term deposit that has not matured: To obtain premature payment and not raise
loan againstthe security of such term deposit
907. What should be the age of depositor who will use form 15 H for declaringthat tax should not be deducted at sourcefrom
his interest incomeon term deposits? He should be senior citizen having attained 60 years of age ••
908. Amount of investmentin Plant and Machineryfor Micro enterprises: Rs25 lakh
909. In how much time a substandard ajc becomedoubtful: 12 months .
910. In how many days a loan application for Rs.2S000j- should be disposedoff under priority sector: As per policy of the
bank.
911. What is the Ceilingamount for retail traders in essential commodity for treating as prioriltyt~ectorf:RsstSd?O1~~h6 months
912. Moratorium period for education loan: Study period plus 12 months from comp e Ion 0 u ies
from date of employment whichever is earlier. " " . t f 3
913. How much amount can be taken from new locker holder accordingto recent quidehnes of RBI. Advance ren or
years "" d f Associ f njArticles of Associationj Certificate of
914. Directors Borrowing Powers are contained 10: Memoran urn 0 la 10
Incorporationj Board Resolution. th
915. R return when to submit: fortnightly as on lSth and lastdda~ of the m~~s not appear on the caution list of RBI and
916. Gold card can be issuedto: exporters with good track recor w ose name
specific approvallist of ECGCand their acco~~tis ~andard ~orh3years. t f the cheque will be made only if one bank is
917. A cheque is crossedin two bank- whether it ISvahd or not. t e paymen 0
acting as agent of other bank otherwise returned.
918. Maximum memberin Joint Liability Group: 10 lssuedr: D Customers acceptance as per contra and Credit
919.
Which contra entry should be made when guarantee be Issue ". r.
Customersacceptancesas per contra " Oateswhich kind of risk is involved: Foreign Exchange
920.
If a bank has oversold position and foreign currency rate appreo ,
Risk. " "" "C to R ion A under official language policy: 55% of the
What is the target of correspondence in Hmdl from Region eg
921.
letters should be written in Hindi. " h d "fng is presentedfor payment. Whether it can be passed?:yes
922.
A cheque is written in different ink and dlffer~nt an wn I "
becauseit does not amount to material alteratlo~. " d loan She wants that the name of her rmnor son be
923.
~d~~J ~a:h: ;~~ ~~~~~C:lld t~e ban~ do?:
A branch is consioeredas rural branch If the
Th~I~~~:
" lh ou against which she has raisec oeu-

pop
h I
~~h~ep~:~e~~Z;; ~~~:~~ ~t:ni~:
""
lessthan 10,000 (as per
I t and machinery does
924.
id r ) " " "nal Investment m pan
RBI gUtle I~sees
will be treated as Small (manufacturing) e~terpnse w~: ~r:;:iginal investment in plant & machinery does
925. An en erpn d Medium (Manufactunng) enterpn .
t eed and treate as
no exc . Rs 5 crore, Rs 10 crore " ? 1949 "
• not exceed" d "d~ that Hindi will be the official languageof India". ted as Negotiable Instruments under which
926. In which year It wa~ ~I f Lading have acquired transferability and ar~tr:ct Act! d
927. Railway Receiptan I 0rty Act/ Negotiable Instruments Act j Indian.;; Liability for calculation of CRR?: Deman
Act?: Transfer of P~op~ for calculation of Net Demand & nne
28 Which of the follOWingIS ~xcluded "tsj Draft Payablej None of theSe
9 . depositSjTimedepositsj Savmg Deposl

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