Nr's Model Online Promotion Test For Bank Officers 2011 (Credit Schemes)

Smart Cards are basically bio metric cards. Bio metric refers to the measurement and analysis of unique physical or behavioral characteristics of individuals, such as fingerprints, iris patterns, or facial features. Smart Cards, in this context, are cards that incorporate bio metric technology to securely store and authenticate an individual's bio metric information. This enables the card to be used for various purposes, such as identification, access control, or financial transactions, providing an additional layer of security compared to traditional cards.

The statement is False. Transfer of funds across different banks within India is possible under IOBmobile. This means that users can transfer money from their account in one bank to another bank using the IOBmobile app.

SEBI, the market regulator in India, has introduced a new mode of payment for Initial Public Offers (IPOs) called ASBA, which stands for Application Supported by Blocked Amount. Under this system, the investor's bank account is blocked for the amount of the IPO application, ensuring that the funds are available for allotment if the application is successful. This eliminates the need for investors to issue cheques or transfer funds to a separate escrow account, making the process more efficient and convenient. Therefore, ASBA is the correct answer for the alternative mode of payment for IPOs introduced by SEBI.

Urban/Port Town and Metro Branches can open No Frills Accounts.

IOB Urban Horticulture can be extended for the purpose of creating a roof garden, establishing small orchards, and cultivating flower and vegetable gardens. This means that it can be used for all of these purposes simultaneously, allowing for the development of a diverse and multi-functional horticultural space.

The fourth step in financial inclusion is providing banking services at the doorstep of villagers through smart cards. This step aims to make banking services easily accessible to rural communities by bringing them directly to their homes. Smart cards can be used as a convenient and secure way for villagers to access their bank accounts and conduct transactions without the need to travel to a physical bank branch. This step helps to bridge the gap between rural and urban areas in terms of financial services and promotes financial inclusion for all.

The need for SME units to purchase new/additional machinery arises when there is an expansion of business or when they secure new orders on account of an increase in demand for their products. Both of these situations indicate a growth in the business and a need for additional resources to meet the increased demand or to support the expansion.

The correct answer is A & B above. This means that for raising a garden, both an independent house with at least 500 sq ft of open space and 500 sq ft of open unencumbered roof space are required. This implies that the garden can be either on the ground or on the roof of the house.

ASBA (Application Supported by Blocked Amount) is a process used in initial public offerings (IPOs) where the application amount is blocked in the applicant's bank account until the shares are allotted. This ensures that the applicant's funds are available for allotment and earns interest during the intervening period. Additionally, ASBA allows the bank to retain the blocked amount as a deposit, enabling the bank to continue enjoying funds at a low cost. Therefore, all of the given statements are correct explanations of how ASBA works.

The correct answer is "All the above" because the question asks for the modes in which the mobile banking product is enabled, and all three options (SMS, GPRS, J2ME) are valid modes for enabling mobile banking.

The new loan product introduced for the purchase of agricultural land is called Bhoomi Laxmi.

The maximum amount of loan granted for foreign studies that can be classified as Priority Sector Advance is 20 lacs. This means that individuals can borrow up to 20 lacs for their foreign studies and it will be considered as a priority sector advance.

Diversion of working capital refers to the misuse or redirection of funds that are meant to be used for day-to-day operations and maintaining liquidity. This can have several negative impacts on the financials of an SME unit. It can affect the financials by reducing the availability of funds for essential activities, leading to a decrease in profits and overall financial stability. It can also result in the erosion of net working capital, which is the difference between current assets and current liabilities, further affecting the financial health of the business. Additionally, diverting working capital can impinge on the current ratio, which is a measure of a company's ability to pay its short-term obligations. Therefore, all the options mentioned above are correct.

The term "Existing Firm" refers to a business that has been operating for a certain period of time. In this case, the correct answer is "In practice for 3 years and above." This means that the firm has been in operation for at least 3 years. It is important for the firm to have a certain level of experience and stability before it can be considered an existing firm.

The correct answer is TRADE RELATED ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT. This scheme is related to providing assistance and support for the development of entrepreneurship in the context of trade. It aims to promote and facilitate the growth of entrepreneurial activities in the trade sector, helping entrepreneurs to start and expand their businesses.

The maximum amount of Education Loan granted for studies in India, that can be classified as Priority Sector advances is 10 lacs. This means that if a student applies for an education loan in India for studies within the country, the maximum loan amount that can be granted under the Priority Sector category is 10 lacs.

Collateral security is not necessarily required for financing under IOB CA (Indian Overseas Bank Current Account). The statement suggests that collateral security should be insisted upon for financing, but the correct answer is false, indicating that collateral security is not a mandatory requirement for financing under IOB CA.

An MPIN, or Mobile Personal Identification Number, is a unique numeric code used in mobile banking to authenticate and authorize transactions. It serves as a password specifically for mobile banking services, ensuring secure access to the user's account. Therefore, the correct answer for the given question is MPIN.

The card cannot be used in India, Nepal, and Bhutan. These countries are specifically mentioned as places where the card is not accepted.

ASBA stands for Application Supported by Blocked Amount. This refers to a mechanism introduced by the Securities and Exchange Board of India (SEBI) to apply for initial public offerings (IPOs). Under ASBA, the applicant's bank account is blocked for the IPO amount until the shares are allotted. This ensures that the applicant's funds are not debited until the shares are allotted, providing a secure and efficient way of applying for IPOs.

The correct answer is Agri Transport. This scheme has replaced the Agri Jeep/Bike Schemes.

The explanation for the given correct answer is that the gradual reduction in the time period for allotment and the prohibition of the manual refund process by SEBI (Securities and Exchange Board of India) will make the ASBA (Application Supported by Blocked Amount) scheme more popular. ASBA allows investors to apply for shares in an IPO (Initial Public Offering) without transferring the funds upfront, as the amount is blocked in their bank account until the shares are allotted. This scheme provides convenience and security to investors and with the regulatory changes, it is expected to gain more traction in the future.

The new credit scheme introduced to replace the existing Kisan Green Credit Card Scheme is IOB GREEN CREDIT.

For the release of Commercial Cash Credit against Jewellery, 20 ct to 22 ct jewellery can be taken as security. This means that jewellery with a gold purity of 20 carats to 22 carats can be used as collateral for the cash credit. The other options mentioned, such as IOB Gold Coins, Hallmarked Jewellery, and Precious stones studded KDM Jewellery, are not specified as acceptable forms of security in the given information.

The maximum loan amount that can be sanctioned under NRI Home Loans depends on the borrower's repayment capacity. Additionally, the maximum loan amount is capped at Rs 500 lacs. Therefore, the correct answer is B & C above.

The correct answer is "Business Correspondents, Business Correspondent, business correspondent(s)". Our bank has decided to extend banking services to the allotted villages through Smart Card Banking. To facilitate this, the bank will utilize the services of business correspondents. These individuals will act as intermediaries between the bank and the villagers, providing them with access to banking services using smart cards. The use of business correspondents will help in reaching out to the unbanked population in these villages and promote financial inclusion.

IOB C A refers to a new credit scheme introduced by IOB specifically for practicing Chartered Accountants. This scheme is designed to provide credit facilities to Chartered Accountants and is exclusive to them.

Owners can be financed even if they are not staying in the house under IOB Urban Horticulture. This means that individuals who own a house but do not live in it can still receive financing for their property through the IOB Urban Horticulture program. This may be beneficial for owners who have multiple properties or who choose to live elsewhere but still want to invest in urban horticulture.

IOB-Sampoorna is the correct answer. In the given question, it is mentioned that IOB (presumably referring to Indian Overseas Bank) launched a unique programme in 2008 for Total Village Development. The name of this project is IOB-Sampoorna. The project aims to facilitate total inclusive growth for Integrated Rural Development, covering all aspects of social and economic life of people in the village.

Clusters in the context of MSME (Micro, Small, and Medium Enterprises) refer to the sectoral and geographical concentration of MSME units. These clusters are formed by MSMEs that operate in the same sector and are located in close proximity to each other. By being part of a cluster, MSMEs can benefit from shared opportunities and face common threats. Additionally, these clusters also facilitate the lending and borrowing of surplus resources among the MSME units, promoting collaboration and growth within the sector. Therefore, the correct answer is A & B above.

SARFAESI stands for Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest. It is a law in India that allows banks and financial institutions to enforce their security interest in the assets of borrowers who have defaulted on their loans. However, agricultural land is exempted from the purview of SARFAESI, meaning that banks cannot invoke SARFAESI action against agricultural land.

Under a No Frills Account, the total credit in the account cannot exceed Rs.1,00,000/- in a year. This type of account is designed for individuals with low income and limited banking needs. Therefore, there is a cap on the total amount that can be credited to the account in a year.

SME borrowers often resort to private borrowing and diverting working capital to meet emergent capital expenditure needs. Private borrowing involves seeking funds from individuals or non-banking financial institutions, while diverting working capital means reallocating funds that were originally intended for day-to-day operations to meet the capital expenditure requirements. Both options provide immediate access to funds without the need to sell existing machinery, which may be essential for business operations.

The explanation for the given correct answer is that agricultural land and rural property are considered risky forms of collateral for advances under the ETF. This is because the value of agricultural land and rural property can be volatile and dependent on factors such as weather conditions, market demand, and government policies. Therefore, accepting them as security for advances could pose a higher risk for the lender.

The salient features of the Gift Card are that it is available in cash loaded cards starting from Rs 501/= and it is acceptable in all Visa Merchant Establishments across India. These features make it convenient for the user to choose the desired denomination and use the card at various establishments, providing flexibility and ease of use. Additionally, the discount of 5% on all products adds value to the Gift Card, making it an attractive option for customers.

The special condition regarding appraisal on loans above the value of Rs 3 lacs under Commercial Cash Credit against Jewellery is that the jewels have to be appraised by another appraiser, preferably a panel appraiser from the nearby branch. This means that in addition to the appraisal done by the branch officials and the valuation by an appraiser, another appraiser needs to assess the jewels to ensure their value and authenticity.

The correct answer is CGFTMSE. Collateral security is required for loans above Rs 10 lacs if it is not covered under CGFTMSE, IOB Jeevan, Universal Sompo General Insurance, or New Bima Gold. This suggests that CGFTMSE is a scheme or policy that provides coverage for loans, potentially eliminating the need for collateral security.

Under the floating interest option in loans, both the bank and the borrower are exposed to interest rate risk. This means that the interest rate can fluctuate over time, causing changes in the cost of borrowing for the borrower and potentially affecting the profitability of the bank. The bank may face challenges in managing its interest rate exposure, while the borrower may experience difficulties in budgeting and making loan repayments if the interest rate increases significantly. Therefore, interest rate risk is a significant risk for both parties involved in loans with a floating interest rate option.

The statement is false because the maximum repayment period of 12 years under Bhoomi Laxmi includes a holiday period of 2 years. This means that borrowers have a total of 12 years to repay the loan, with 2 years of that time being a holiday period where they are not required to make any loan payments.

The statement suggests that once the floating rate option is chosen for Liquirent Loans, it will remain in effect for the entire loan period. However, this is incorrect. In reality, borrowers have the option to switch between fixed and floating interest rates during the loan term. Therefore, the correct answer is false.

The margin on the value of immovable properties under Easy Trade Finance is determined based on the forced sale value. In Metro/Urban centres, the margin is 30% of the forced sale value. In Semi-Urban centres, the margin is 40% of the forced sale value. In Rural centres, the margin is 50% of the forced sale value. This means that the maximum loan amount that can be provided is a percentage of the forced sale value of the property, depending on its location.

The statement is false because IOB Urban Horticulture is a financing scheme specifically designed for urban horticulture projects, not for financing tenants staying in privately rented houses.

The quantum of finance under IOB SME Advance Term Loan Sanction Scheme is determined by the lower of A or B or C. This means that the amount of finance provided will be the minimum of the following: 10% of the original cost of existing plant and machinery, the cost of machinery to be purchased less the stipulated margin, or Rs.25 lacs.

The correct answer is True because one of the preconditions to avail the IOB C A Credit facility is that the applicant should not have undergone any disciplinary action by the institute. This means that if the applicant has faced any disciplinary action, they would not be eligible to avail the credit facility.

The eligibility criteria for the IOB-Agri Transport Scheme include being a farmer who owns economically viable land or engages in agricultural or allied activities with sufficient income to repay the loan. Additionally, the farmer should not have any default payments elsewhere and should have assessable repayment capacity.

The end use of Agri Green Credit can be all of the above options mentioned. The amount can be used for various purposes such as cultivation, plantation, land development, purchase of milch animals, farm machinery, construction of storage facilities, farmhouses, and cattle sheds. This implies that the credit can be utilized for both production-related activities and investment purposes in the agricultural sector.

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The new product of financing against pledge of jewels for commercial purposes developed by our Bank is called Commercial Cash Credit against Jewellery.

The correct answer is Hypothecation of Crop and the Vehicle to be purchased out of Bank Finance and Collateral security valued at least 50% of the loan amount in any form ie. land, building, FDR, Life policy, NSC etc. This means that for loans more than Rs 50000/- under the IOB Agri Transport Scheme, the borrower needs to hypothecate both the crop and the vehicle that will be purchased with the loan. Additionally, they need to provide collateral security valued at least 50% of the loan amount, which can be in the form of land, building, fixed deposit receipt (FDR), life policy, National Savings Certificate (NSC), or any other form accepted by the bank.

The maximum repayment period for the IOB-Agri Green Credit is seven years. The repayment can be made in monthly, half-yearly, or annual installments, depending upon the cropping pattern.