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N.rangarajan's Model Online Test For Bank Officers Promotion 2011

51 Questions
Bank Quizzes & Trivia

This Quiz is based on the Monthly Credit Information Review of RBI. Please open the link in RBI Website in one separate window and practice by toggling effectively. I have reckoned from the month of Jan 2010 to till date for this test. Please take Quiz Password by e Mailing to [email protected] Com your full particulars like Name,Age,Place of Work/Study,Designation/Course,Phone/Mobile No and AddressWith Best Wishes!!N. RangarajanSenior Manager Of A Public Sector BankBased @ Trichy Tamil Nadu

Questions and Answers
  • 1. 
    What is LTV?
    • A. 

      Loan Term Value

    • B. 

      Loan To Value

    • C. 

      Liability Terminal Value

    • D. 

      None of the above

  • 2. 
    Why LTV Ratio is prescribed by RBI in Housing Loan Exposure of Banks?
    • A. 

      To prevent misuse

    • B. 

      To Verify end use

    • C. 

      To ensure credit discipline

    • D. 

      To prevent excessive leveraging

  • 3. 
    What is the loan to value (LTV) ratio in respect of housing loans hereinafter ?
    • A. 

      1/8 th

    • B. 

      80%

    • C. 

      3/4 th

    • D. 

      75%

  • 4. 
    Upto What amount of loan under Housing Category, Banks can classify as Priority Sector?
    • A. 

      10 Lacs

    • B. 

      15 lacs

    • C. 

      17.5 lacs

    • D. 

      20 lacs

  • 5. 
    What is the LTV for Small Value Housing Loans upto Rs 20 lacs?
    • A. 

      10%

    • B. 

      20%

    • C. 

      90%

    • D. 

      None of the above

  • 6. 
    He risk weight on residential housing loans of Rs. ____ lakh and above, irrespective of the LTV ratio, would be ___ per cent to prevent excessive speculation in the high value housing segment.
  • 7. 
    What is teaser rate?
    • A. 

      It is the rate per hour for eve teasing charged by professional lovers

    • B. 

      It is stealthy rate offered in shops tempting the buyer to get inside the shop for purchase

    • C. 

      It is misleading Rate

    • D. 

      It is concept of Rate of Interest in Housing Loan wherein initially lower rate is offered and subsequently hiked to the normal rate prevailing in the market

  • 8. 
    In view of the higher risk associated with housing loans sanctioned by banks at teaser rates, the standard asset provisioning on the outstanding amount has been increased from 0.40 per cent to 2.00 per cent.
    • A. 

      True

    • B. 

      False

  • 9. 
    The provisioning on these assets would not revert to 0.40 per cent after 1 year from the date on which the rates are reset at higher rates if the accounts remain ‘standard’.
    • A. 

      True

    • B. 

      False

  • 10. 
    The Statutory Liquidity Ratio (SLR) for scheduled commercial banks (SCBs) has been reduced from 25 per cent of their__________________________ to 24 per cent from December 18, 2010.
    • A. 

      Net Demand and Time Liabilities (NDTL)

    • B. 

      Gross Demand and Time Liabilities (NDTL)

    • C. 

      Other Demand and Time Liabilities (NDTL)

    • D. 

      On the Gross Liabilities less Sundries

  • 11. 
    What is the service charge for above Rs 1 lac instruments under Outstation Cheques for collection prescribed by RBI?
    • A. 

      Rs 150 + Postages @ reasonable levels

    • B. 

      Rs 100 All inclusive maximum amount chargeable by banks to the customers

    • C. 

      Left to the Discretion of Banks

    • D. 

      As per Service Charges Booklet of IOB

  • 12. 
     The service charge structure put in place by them should have their _________ approval.
  • 13. 
    What is the present Bank Rate?
    • A. 

      6%

    • B. 

      9.50%

    • C. 

      13.75%

    • D. 

      18%

  • 14. 
    What is maximum validity period and amount per one Prepaid Gift instrument recently approved by RBI,that can be issued by commercial Banks?
    • A. 

      1000

    • B. 

      10000

    • C. 

      100000

    • D. 

      50000

  • 15. 
    Cash withdrawals can be permitted in Prepaid Gift Istruments.
    • A. 

      True

    • B. 

      False

  • 16. 
     What does the abbreviation "OPGSP" stand for?
    • A. 

      Online Payment Gateway Service Providers

    • B. 

      Online Penalty Gateway System Providers

    • C. 

      Outright Priority Giveaway Scheme Panel

    • D. 

      Online Payment Grading Scheme Pathway

  • 17. 
    Repatriation of export related remittances through payment gateways now permitted opto
    • A. 

      USD 500

    • B. 

      USD 5000

    • C. 

      USD 50000

    • D. 

      Not of the above

  • 18. 
    Who can be engaged as Business Correspondent by Banks?
    • A. 

      Retired bank employees/teachers/government employees and ex-servicemen, individual owners of kirana/medical/ fair price shops, individual public call office (PCO) operators, agents of small savings schemes of Government of India/insurance companies, individuals who own petrol pumps, authorised functionaries of well run self help groups (SHGs) which are linked to banks, any other individual including those operating common service centres

    • B. 

      NGOs/micro finance institutions (MFIs) set up under Societies/Trust Acts and Section 25 companies

    • C. 

      Cooperative societies registered under Mutually Aided Cooperative Societies Acts/Cooperative Societies Acts of States/Multi State Cooperative Societies Act

    • D. 

      Post offices

    • E. 

      Companies registered under the Indian Companies Act, 1956 with large and widespread retail outlets

    • F. 

      Allthe above

  • 19. 
    NBFCs Cannot be engaged as Business Correspondents
    • A. 

      True

    • B. 

      False

  • 20. 
    What is the distance criteria between Base Branch and the location of Business Correspondent?
    • A. 

      30 kms in rural, semi-urban and urban areas

    • B. 

      5 kms in metropolitan centres

    • C. 

      All the above

    • D. 

      None of the above

  • 21. 
    Who can relax the distance criteria between the Base Branch and the location of Business Correspondent?
    • A. 

      The district consultative committee (DCC)/state level bankers committee (SLBC) could consider and approve relaxation in distance criterion on merits in respect of underbanked areas

    • B. 

      The District Collector

    • C. 

      The Local Body Chairman

    • D. 

      CMD with the approval of Board of the respective Commercial Bank

  • 22. 
    While the beneficiary’s name should be compulsorily mentioned in the instruction request, and carried as part of the funds transfer message, reliance will be only on the account number for the purpose of affording credit under NEFT/RTGS/ECS/NECS
    • A. 

      True

    • B. 

      False

  • 23. 
    What is the amount of sacrifice to be brought upfront by the customers in case of restructuring of advances?
    • A. 

      25% of 15%

    • B. 

      50% of 15%

    • C. 

      100% of 15%

    • D. 

      None of the above

  • 24. 
    What is the time limit within which the promoter's contribution towards sacrifice should be brought in, in respect of prudential restructuring of advances?
    • A. 

      1 year

    • B. 

      1 month

    • C. 

      1 quarter

    • D. 

      2 months

  • 25. 
    What is the spin-off effect if the customer could not bring in his share of sacrifice upfront within the extended period of one year, in respect of prudential restructuring of advances?
    • A. 

      The asset classification benefit will not accrue to the respective Banks.

    • B. 

      Banks will have to revert to classifying such accounts as per the asset classification norms specified in the Reserve Bank’s Master Circular on ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances’ of July 1, 2010.

    • C. 

      A & B above

    • D. 

      None of the above

  • 26. 
    Under What methods other than cash, the promoters contribution of sacrifice can be brought in in respect of prudential restructuring of advances?
    • A. 

      De-rating of equity

    • B. 

      Conversion of unsecured loan brought by the promoter into equity

    • C. 

      Interest free loans

    • D. 

      All the above

  • 27. 
    Normally Account Payee Cheques cannot be collected for Third Party Account.Reserve Bank of India has recently introduced collection of "A/C Payee Cheques" to a third party account in respect of a specific type of Customer with a ceiling amount.Who is the customer and what is the amximum amount?
    • A. 

      All Types of Customers and No Ceiling

    • B. 

      For co operative Credit Societies when they collect for their customers upto a ceiling of Rs 50000/=

    • C. 

      NGOs,MFIs upto Rs 100000/=

    • D. 

      None of the above

  • 28. 
    What is the % of interest subvention in respect of short term crop loans upto Rs 3 lacs during 2010-2011?
    • A. 

      1%

    • B. 

      1.5%

    • C. 

      2%

    • D. 

      3%

  • 29. 
    The Government of India will also provide additional interest subvention of 2 per cent per annum to PSBs in respect of those farmers who repay their short-term production credit within one year of disbursement/drawal of such loans. This subvention will be available to such farmers on the short-term production credit up to a maximum amount of Rs.3 lakh availed of by them during the year, from the date of disbursement/ drawal of the crop loan up to the actual date of repayment by farmers or up to the due date fixed by the bank for repayment of crop loan, whichever is earlier, subject to a maximum period of one year from the date of disbursement.
    • A. 

      True

    • B. 

      False

  • 30. 
    The additional interest subvention of 2% will be available to promptly rapaying farmers provided the Banks Charge interest on Short Term Production Credit (Crop Loans) @ ______
  • 31. 
    What is the rate of interest to be charged by Banks on Short Term Production Credit upto Rs 3 lacs under Agriculture to claim interest subvention of 1.5%?
    • A. 

      5%

    • B. 

      7%

    • C. 

      9%

    • D. 

      Base Rate

  • 32. 
    What is the intermediate/final target date to provide banking services through a banking outlet in every village having a population of over 2000?
    • A. 

      31.03.2010/31.03.2011

    • B. 

      31.03.2011/31.03.2012

    • C. 

      31.03.2012/31.03.2013

    • D. 

      None of the above

  • 33. 
    How the intermediate/final target date to provide banking services through a banking outlet in every village having a population of over 2000 can be achieved? 
    • A. 

      By Opening New Branches

    • B. 

      Such banking services may not necessarily be extended through a brick and mortar branch but can be provided through any of the various forms of ICT- based models, including through business correspondents.

    • C. 

      IBA is entrusted with the responsibilty of devising the modalities and advising Banks in this regard.

    • D. 

      None of the above

  • 34. 
    Under NECS/ECS/NEFT credit,The destination bank would be liable to pay penal interest at the current LAF repo rate plus two per cent from the due date of credit till the date of actual credit for any delayed credit to the beneficiarie's account. The penal interest should be credited to the beneficiary’s account even if no claim is lodged.
    • A. 

      True

    • B. 

      False

  • 35. 
    What is the maximum  loan amout upto which Interest Subvention on Individual Housing Loans is available?
    • A. 

      10 lacs

    • B. 

      20 lacs

    • C. 

      5 lacs

    • D. 

      15 lacs

  • 36. 
    What is the the cost of construction/price of the new house/extension to be eligible for Interest Subvention on Individual Housing Loans?
    • A. 

      10 lacs

    • B. 

      20 lacs

    • C. 

      5 lacs

    • D. 

      15 lacs

  • 37. 
    What is the period of operation of Interest Subvention on Individual Housing Loans?
    • A. 

      October 1, 2009 upto 30.09.2011

    • B. 

      April 1 2010 to 30.09.2011

    • C. 

      Jan 1, 2010 to 31.03.2011

    • D. 

      October 1,2009 to March 31, 2011

  • 38. 
    How interest subvention on Individual Housing Loans is administered?
    • A. 

      Defined as reduction in interest rate by 100 basis points per annum fromthe existing rate of interest for a particular amount and tenor.

    • B. 

      It will be applicable to the first twelve installments of all suchloans sanctioned and disbursed during the currency of theScheme and would be computed for 12 months on thedisbursed amount.

    • C. 

      The subsidy amount will be adjustedupfront in the principal outstanding, irrespective of whether theloan is on fixed or floating rate basis.

    • D. 

      All the above

  • 39. 
    Borrowers can choose fixed or floating rate of interest under interest subvention on Individual Housing Loans.
    • A. 

      True

    • B. 

      False

  • 40. 
     Who headed the Prime Minister's Task Force on Micro, Small and Medium Enterprises (MSMEs)? 
    • A. 

      A.S Ganguly

    • B. 

      S.L.Kapur

    • C. 

      T.K.Nair

    • D. 

      Nayak

  • 41. 
    What is the year-on-year growth in credit to micro and small enterprises ?
    • A. 

      5%

    • B. 

      10%

    • C. 

      15%

    • D. 

      20%

  • 42. 
    What is the  annual growth in number of micro enterprise accounts?
    • A. 

      10%

    • B. 

      20%

    • C. 

      30%

    • D. 

      40%

  • 43. 
      How the allocation of 60 per cent of the MSE advances to the micro enterprises is to be achieved ?
    • A. 

      50 per cent in 2010-11,

    • B. 

      55 per cent in 2011-12

    • C. 

      60 per cent in 2012-13

    • D. 

      All the above

  • 44. 
    What are the latest guidelines of RBI to be followed by banks while processing banknotes?
    • A. 

      "Clean Note Policy"

    • B. 

      Machine Sorting/Counting and Banding

    • C. 

      "Maker and Checker Mechanism"

    • D. 

      ’Note Authentication and Fitness Sorting Parameters’’

  • 45. 
    Joining parts of the same currenct note together, for example, by using extraneous matter such as tape, paper or glue is called as 
    • A. 

      Damaged Note

    • B. 

      Repaired Note

    • C. 

      Soiled Note

    • D. 

      Fake Note

  • 46. 
    Notes with with an area of more than 130 mm² and a minimum length of the smaller edge greater than 10 mm are called as Notes with
    • A. 

      Dog-ears

    • B. 

      Uneven Notes

    • C. 

      Graffiti

    • D. 

      Crumples/Folds

  • 47. 
    What is the latest Margin Free Ceiling for Agricultural Loans?
    • A. 

      25000

    • B. 

      50000

    • C. 

      100000

    • D. 

      300000

  • 48. 
    What is the penalty imposed buy RBI for the forged notes detected in soiled note remittances or in chest balances of the currency chest of any bank?
    • A. 

      An amount equal to the notional ‘value’ of the counterfeit note in addition to the loss

    • B. 

      Double the value of the Note

    • C. 

      6 months Simple Imprisonment

    • D. 

      None of the above

  • 49. 
    Authorised dealers and full fledged money changers are now permitted to sell foreign exchange in the form of foreign currency notes and coins, up to USD _____ or its equivalent, to the travellers proceeding to countries other than Iraq, Libya, Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States
  • 50. 
    What is the penal interest for clearing related overdraft of Banks that should be charged by clearing house managing Banks?
    • A. 

      For intra-day overdraft (the day when the overdraft is extended, irrespective of the time period for which the overdraft facility is enjoyed), interest shall be charged at relevant LAF repo rate + 100 basis points.

    • B. 

      If the overdraft extends to the following day (overnight and beyond), interest shall be charged at relevant LAF repo rate + 300 basis points.

    • C. 

      In instances where settlement accounts of member banks (with the settlement bank at the concerned clearing location) are not credited in time and the settlement bank has levied overdraft charges, though funds have already been remitted and credited to the settlement bank’s account at Mumbai (or any other central location - through RTGS or otherwise), the overdraft charges shall be refunded, on member banks proving that the funds were received in time by the settlement bank.

    • D. 

      All the above

  • 51. 
    Banking Codes and Standards Board of India (BCSBI) has included pension as payment services for application of ‘Code of Commitment by Banks to Customers’.
    • A. 

      True

    • B. 

      False