Model Online Promotion Test For Officers Recollected Questions 2010

Interest will be given in the deceased depositors account from the date of death of the depositor until the date of claim settlement to the nominee or legal heirs. This means that even after the depositor's death, the account will continue to earn interest until it is claimed by the nominee or legal heirs.

The bank's risk in financing an unregistered partnership firm is that the firm cannot sue its customers on their contracts, which means it cannot take legal action against its debtors to recover its dues. This poses a significant risk to the bank as it may not be able to fully recover the loan amount in case of default by the partnership firm. Therefore, the bank is exposed to the risk of potential loss if the firm fails to repay the loan.

The crucial ratios to be analyzed when receiving a Term Loan Proposal are the Debt Service Coverage Ratio (DSCR) and the Total Outside Liabilities to Tangible Net Worth (TOL to TNW) ratio. The DSCR measures the ability of the borrower to generate enough cash flow to cover the loan payments, while the TOL to TNW ratio assesses the borrower's financial leverage and risk. These ratios are important indicators of the borrower's ability to repay the loan and the overall financial health of the company.

The right of subrogation refers to the guarantor's right to step into the shoes of the creditor and recover the amount paid from the debtor. In this case, since the guarantor has paid the dues of the principal debtor to the creditor, they now have the right to seek repayment from the debtor. This allows the guarantor to be reimbursed for the amount they paid on behalf of the debtor.

The maximum loan limit under the Sanjeevini Scheme in Rural and Semi Urban Areas is 10 lacs and 50 lacs.

If the Bank Clearing officer has seen the obituary column in that day's newspaper stating that Mr. Naresh has expired, it is necessary for the bank to return the cheque. The death of the principal, in this case Mr. Naresh, affects the validity of the Power of Attorney (POA) given to Mr. Suresh. Therefore, the bank cannot honor the cheque as it is no longer valid due to the principal's death.

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DSCR stands for Debt Service Coverage Ratio, which is a measure of a company's ability to repay its debt obligations. It is calculated by dividing the company's net operating income by its total debt service. In this case, the net operating income can be calculated by subtracting the annual interest on the TL and depreciation from the PBT, which gives us 32 lacs. The total debt service is the sum of the annual interest on the TL and the annual EMI, which is 23 lacs. Therefore, the DSCR is 32 lacs divided by 23 lacs, which equals approximately 1.39. Since the closest option to 1.39 is 1.5, the correct answer is 1.5.

The legal relationship between a nominee and legal heirs is that of a trustee and beneficiary. A nominee is someone who is appointed to hold and manage assets on behalf of another person, known as the beneficiary. The nominee has a fiduciary duty to act in the best interests of the beneficiary and to manage the assets in accordance with their wishes. The legal heirs, on the other hand, are individuals who are entitled to inherit the assets of a deceased person. Therefore, the relationship between a nominee and legal heirs can be described as that of a trustee and beneficiary.

The correct answer is 12%. This means that the percentage of Export Credit to Adjusted Net Bank Credit is 12%. This indicates that the amount of credit provided for exports is 12% of the total adjusted net bank credit.

The explanation for the answer being False is that a crossed cheque can be presented over the counter by another bank as an agent for collection, but it does not necessarily mean that cash cannot be paid. The bank has the option to issue a counter draft or pay cash depending on its policies and the specific circumstances of the transaction.

The maximum Forex Entitlement for Medical Treatment abroad for a patient includes all of the options mentioned in the question. AD Category I banks and AD Category II can release up to USD 100,000 or its equivalent for medical treatment abroad on a self-declaration basis. Additionally, a person can obtain foreign exchange exceeding this limit if supported by an estimate from a hospital/doctor. An amount up to USD 25,000 is also allowed for maintenance expenses of a patient going abroad for medical treatment or check-up, or to a person accompanying as an attendant. Therefore, all of the options mentioned in the question are correct.

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The correct answer is "90 days after the DP becoming Nil". This means that if the stock statement is not submitted for 3 months in an OCC account and the DP (Drawing Power) becomes Nil, then the OCC (Overdraft Cash Credit) account will be classified as Non-Performing Asset (NPA) after 90 days.

The correct answer is Rs 400 Crore under MCB. This means that the single borrower limit for Partnership Firms for Projects Other than Infrastructure, as per the Prudential Exposure Norms, is Rs 400 Crore under the Master Circular on Basel III Framework on Liquidity Standards.

The maximum number of transactions in a No Frill account is 25 transactions per half year. This means that within a period of six months, a customer can make up to 25 transactions, including deposits, withdrawals, and any other type of transaction. This limit ensures that the account is used for basic banking needs and discourages excessive activity or frequent transactions.