✔️🔮✔️Sir Osborne Smith was the first Governor of the Reserve Bank of India, CD Deshmukh was the first Indian Governor of RBI.

✔️🔮✔️Reserve Bank of India (RBI) was established in 1935 and Nationalized in 1949.

✔️🔮✔️The first bank of limited liability managed by Indians was Oudh Commercial Bank founded in 1881.

✔️🔮✔️Bank of Hindustan in 1770 is the first bank set up in India

✔️🔮✔️The first presidency of SBI was established in Kolkata in 1806 during the British Raj and was named as Bank of Bengal.

✔️🔮✔️In 1921, these three SBI branches were made to merge to form ‘Imperial Bank of India’.

✔️🔮✔️The largest bank – Imperial Bank of India – was nationalised in 1955 and rechristened as State Bank of India (SBI), followed by formation of its 7 Associate Banks in 1959.

✔️🔮✔️The Government of India issued an ordinance on 19 July 1969 acquiring ownership and control of 14 major banks in the country. Six more commercial banks were nationalised from 15 April 1980.

✔️🔮✔️Bank of India is the first Indian Bank to open overseas branch. It established a branch in London in 1946.

✔️🔮✔️Allahabad Bank is the oldest existing public sector bank in India.

✔️🔮✔️State Bank of India is the first joint stock Bank of British India

✔️🔮✔️Central Bank of India is first Bank to introduce Credit Card in India

✔️🔮✔️Allahabad Bank is the First Joint Stock Bank of India

✔️🔮✔️Comptoire d’Escompte de Paris of France in 1860 is the first Foreign Bank in India

✔️🔮✔️Savings account system in India was started by Presidency Bank, in 1833.

✔️🔮✔️ICICI Bank was the first Bank to provide Mobile ATM.

✔️🔮✔️Cheque system was first introduced by Bengal Bank which was established in 1784.

✔️🔮✔️ICICI Bank was the first Indian Bank to provide internet banking facility.

✔️🔮✔️Hong Kong and Shanghai Banking Corporation (HSBC) introduced first time ATM in India in 1987, Mumbai.

✔️🔮✔️NPCI launched the first Gramin bank ATM card with the Kashi Gomti Samyut Gramin Bank in association with Union Bank of India in Varanasi. The card is called RuPay Gramin Card.

✔️🔮✔️India’s first non-bank owned ATM opens in Maharashtra, Private sector lender Federal Bank announced its tie-up with Tata Communications Payment Solutions Ltd as the sponsor bank to deploy White Label ATMs

✔️🔮✔️Punjab National Bank is the first Indian bank started with Indian capital /indigenous Bank of India

✔️🔮✔️John Mathai was first chairman of State Bank of India

✔️🔮✔️Arundhati Bhattacharya is the first women chairperson of State Bank of India.

✔️🔮✔️India’s first “talking” Automated Teller Machine (ATM) launched by Union Bank of India (UBI) for visually impaired was launched in Ahmedabad (Gujarat).

✔️🔮✔️Syndicate Bank started the first Regional Rural Bank name Prathama Grameen Bank

IBPS PO Exam Syllabus

IBPS PO – SYLLABUS

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1.       IBPS PO – ENGLISH LANGUAGE (40 marks, 40 questions)

Vocabulary:

Synonyms, Antonyms, Homonyms, Word Formation, Sentence CompletionComprehension:

Theme detection, Deriving Conclusion, Passage Completion Error Detection and Rearrangement: Passage Correction, Sentence Correction, SpellingGrammar:

 Active Passive Voice, Direct Indirect SpeechGeneral Usage:

 Idioms and Phrases

2.       IBPS PO – LOGICAL REASONING (50 marks, 50 questions) 
Verbal Reasoning: Analogy, Coding Decoding, Blood Relation, Sitting Arrangement, Series Completion, Syllogism, Decision Making, Statement ReasoningNon-verbal Reasoning: Series Completion, Analogy, and Classification

3.       IBPS PO – QUANTITATIVE APTITUDE (50 marks, 50 questions) 
Arithmetic:

Numbers, Simplification, Roots, Average, Surds & Indices, Percentage, Profit & Loss, Ratio & Proportion, Partnership, Chain Rule, Time & Work, Pipes & Cisterns, Time & Distance, Problems on Trains, Boats & Streams, Allegation, Simple Interest, Compound Interest, Stocks & Shares, Clocks, Logarithms, Mensuration, Volume & Surface Area, Permutation & combination, Probability, Heights & DistancesData Interpretation:

Tabulation, Bar Graphs, Line Graphs, Pie Charts

4.       IBPS PO – GENERAL/MARKETING/BANKING AWARENESS (40 marks, 40 questions) 
Questions in this component will be aimed at testing the candidate’s general awareness of the environments around him and its application to society. These questions will be such that they do not require a specific study of any discipline.
– Knowledge of current events
– Everyday observations and experience in the scientific aspect as may be expected of any educated person
– India and its neighbouring countries
– Sports, History, Culture, Geography, Economy, General Polity, Indian Constitution, Scientific Research Over 70% of the questions will be related to Economy, Banking and Finance.

5.       IBPS PO – COMPUTER AWARENESS (20 marks, 20 questions)
General Knowledge on Computer usage and application (basic hardware and software) 

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TET Coaching Centre in Coimbatore

Shanmugam IAS Study circle is an independent private educational institution.​ It was established in the Year of 2006 with the noble cause of  training the civil service aspirants in a focus manner and preparing them for facing the lands highest examination.

we are steadfastly committed to quality guidance and holistic training to the IAS IPS IRS TNPSC GROUP I II& IV, VAO, BANKING, SI, POLICE, TET, TRB Railway and all competitive aspirants.

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Bank Exam Coaching Centre in Coimbatore

Shanmugam IAS Study circle is an independent private educational institution.​ It was established in the Year of 2006 with the noble cause of  training the civil service aspirants in a focus manner and preparing them for facing the lands highest examination.

we are steadfastly committed to quality guidance and holistic training to the IAS IPS IRS TNPSC GROUP I II& IV, VAO, BANKING, SI, POLICE, TET, TRB Railway and all competitive aspirants.

click here to more details... 

FINANCIAL & BANKING AWARENESS QUESTIONS SET 7

1) At present number of public sector banks inIndia:
a) 26
b) 27
c) 28
d) 29
e) None of these

2) At present number of private sector banks inIndia:
a) 21
b) 22
c) 23
d) 24
e) None of these

3) Nationalisation of 14 major banks in…………………..
a) 1949
b) 1955
c) 1959
d) 1969
e) None of these

4) Nationalisation of six banks in…………………………..
a) ) 1949
b) 1955
c) 1959
d) 1969
e) 1980

5)The largest commercial bank in India:
a) SBI
b) ICICI Bank
c) PNB
d) HDFC Bank
e) None of these

6) The Second largest public sector commercial bank in India:
a) Punjab National Bank
b) Bank of Baroda
c) Bank of India
d) IDBI Bank
e) Corporation Bank

7) The Largest private sector commercial bank in India:
a) AXIS Bank
b) HDFC Bank
c) ICICI Bank
d) Federal Bank
e) None of these

8) The second largest private sector commercial bank in India:
a) IDBI Bank
b) AXIS Bank
c) HDFC Bank
d) ICICI Bank
e) None of these

9) The first Indian bank to open a branch outside India in London in 1946:
a) State Bank of India
b) Punjab National Bank
c) Bank of Baroda
d) Canara Bank
e) Bank of India

10) Latest Public Sector Bank inIndia:
a) SBI
b) ICICI Bank
c) HDFC Bank
d) IDBI Bank
e) None of these

11) Latest Private Sector Bank inIndia:
a) Federal Bank
b) South Indian Bank
c) YES Bank
d) Kotak Mahindra Bank
e) None of these

12) The Largest foreign bank operating inIndia:
a) Citi Bank
b) HSBC
c) Barclays Bank
d) ABN Amro Bank
e) Standard Chartered Bank

13) Which bank is the largest issuer of credit cards inIndia?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) IDBI Bank
e) None of these

14) Who is the current MD & CEO of ICICI Bank?
a) Shyamala Gopinath
b) Shikha Sharma
c) Chanda Kochhar
d) Renu Challu
e) Sushma Nath

15) The Chairman of Indian Banks Association (IBA) (For 2011-12):
a) M.D.Mallya
b) Pratip Chaudhuri
c) D.Subbarao
d) Subir Gokarn
e) U.K.Sinha

16) The largest bank inChina:
a) Industrial and Commercial Bank of China Ltd. (ICBC)
b) Hongkong and Shanghai Banking Corporation(HSBC)
c) Deutsche Bank AG
d) BNP Paribas
e) DBS Bank

17) Bad loans in banking terminology are generally known as…………………
a) CBS
b) PLR
c) NPAs
d) CRR
e) None of these

18) In Financial Term NPA, P stands for………..
a) Potential
b) Peforming
c) Prodiction
d) Professional
e) None of these

19) Which of the following pairings is wrong?
 (Bank & Country)
a) Citi Bank : USA
b) ABN AMRO Bank : TheNetherlands
c) BNP Paribas :Russia
d) Hongkong and Shanghai Banking Corporation(HSBC) :United Kingdom
e) Deutsche Bank AG :Germany

20) Which of the following pairings is wrong?
(Bank & Country)
a) Barclays Bank : United Kingdom
b) J P Morgan Chase Bank :USA
c) Societe Generale :France
d) Standard Chartered Bank :South Africa
e) Sonali Bank :Bangladesh

21) The New Capital Adequacy Framework prescribed for the banks is commonly known as ………….
a)KYC norms
b)Credit Policy
c)Basel Accord
d)Fiscal Policy
e) None of these

22) The central bank of theUnited States:
a) Citi Group
b) Bank ofAmerica
c) JP Morgan Chase
d) Federal Reserve
e) Bank for International Settlements

23) Which of the following pairings is wrong? (Bank & Tagline)
a) State Bank ofIndia: With you all the way
b) Punjab National Bank : The name you can BANK upon!
c) Bank ofBaroda:India’s International Bank
d) Oriental Bank of Commerce : Where every individual committed
e) Bank of India : The World’s local bank

24) Axis Bank previously called as……….
a) IDBI Bank
b) HDFC Bank
c) YES Bank
d) ICICI Bank
e) UTI Bank

25) Which of the following is not a commercial bank?
a) IDBI Bank
b) HDFC Bank
c) ICICI Bank
d) EXIM Bank
e) AXIS Bank

26) Which of the following pairings is wrong?(Bank/Financial Institution & Establishment Year)
a) RBI : April 1, 1935
b) SBI : July 1, 1955
c) NABARD : July 12, 1982
d) NHB : July 9, 1988
e) SIDBI : April 1, 1990

27) The largest bank inPakistan:
a) State Bank of Pakistan
b) Habib Bank Limited
c) Sonali Bank
d) DBS Bank
e) None of these

28) Consider the following sentences:
A. Non Performing Asset (NPA) is an asset, including a leased asset, becomes non performing when it ceases to generate income for the bank.
B. Core banking is a general term used to describe the services provided by a group of networked bank
branches. The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions.
C. Banking Ombudsman is an independent dispute resolution authority provided by RBI to deal with disputes that bank customers have with their respective banks.
D. Base Rate is the minimum rate of interest that a bank is allowed to charge from its customers. Unless mandated by the government, RBI rule stipulates that no bank can offer loans at a rate lower than base Rate to any of its customers.
E. NBFC or Non Banking Financial Companies is a company in India, which is registered under the Companies Act, 1956, and which provides banking services without meeting the legal definition of a bank.
Which of the statements given above is/are correct?
a) Only A & B
b) Only B & C
c) Only C & D
d) Only D & E
e) All are correct

29) Which of the following is the Apex level institution for housing?
a) EXIM Bank
b) NABARD
c) NHB
d) SIDBI
e) None of these

30) Which of the following is not a nationalized bank?
a) PNB
b) Indian Bank
c) Bank of India
d) Karnataka Bank
e) Canara Bank

31) Which of the following banks was merged with ICICI Bank in 2010?
a) Bank of Rajasthan
b) Bank of Maharashtra
c) Karnataka Bank
d) State Bank ofIndore
e) Global Trust Bank

32) Which of the following banks was merged with SBI in 2010?
a) State Bank of Travancore
b) State Bank of Mysore
c) State Bank of Indore
d) State Bank of Saurashtra
e) State Bank of Hyderabad

ANSWERS

1) a 2) b 3) d 4) e 5)a 6)a 7) c 8) c 9) e 10) d
11) c 12) e 13) b 14) c 15) a 16) a 17) c 18) b 19) c 20) d
21) c 22) d 23) e 24) e 25) d 26) e 27) b 28) e 29) c 30) d 31) a 32)c

BANK EXAM QUESTIONS

Fill up the blanks with suitable word/words

1. Banking Regulation Act was passed in .......... (1949)

2. Reserve Bank of India Act was passed in .......... (1934)

3. Reserve Bank of India was nationalised in .......... (1st January, 1949)

4. Industrial Finance Corporation of India was established in .......... (1948)

5. Industrial Development Bank of India was setup in .......... (July, 1964)

6. Industrial Credit and Investment Corporation of India was established in ..........(1955)

7. Export and Import Bank of India was set up in .......... (1982)

8. Exchange banks specialise in financing .......... (Foreign trade)

9. Current deposits are also called .......... (Demand deposits)

10. Loans which can be called back by the bank at a very short notice of one day to fourteen days are called .......... (Money at call)

11. The maturity period of term loans is more than .......... (One year)

12. Banks are called public conservators of .......... (Commercial virtues)

13. Unit banking system originated and grew in .......... (U.S.A.)

14. Banking system which is very popular and successful in India is .......... (Branch banking system)

15. 14 major commercial banks were nationalised in .......... (July, 1969)

16. A nine member committee on the financial reforms under the Chairmanship of Narasimham submitted its report on .......... (December 1991)

17. Lead Bank Scheme was introduced by the Reserve Bank towards the end of .......... (1969)

18. NABARD was set up on .......... (12th July, 1982)

19. Regional Rural Bank Act was passed in .......... (1976)

20. At present there are .......... regional rural banks in India. (196)

21. The Small Industries Development Bank of India was set up by the Government of India in .......... (April, 1990)

22. The market which deals in trade bills, promissory notes and government papers or bills, which are drawn for short-periods is called .......... (Money market)

23. A financial market in which short-term papers or bills are brought and sold is known as .......... (Bill market)

24. In order to protect the interests of investors and regulate the working of stock exchanges, the Government in 1988 set up the .......... (Stock Exchange Board of India)

25. The financial market for long-term funds is known as .......... (Capital market)

26. A banker is a .......... debtor. (Privileged)

27. A banker’s lien is always .......... lien. (General)

28. To claim a banking debt ..........in writing is necessary. (An express demand)

29. .......... is necessary to exercise a lien (No agreement)

30. The word customer signifies a relationship in which .......... is of no essence. (Duration)

31. For wilful dishonour of a cheque .......... damage is payable by the banker. (Vindictive)

32. Accepting a bill and making it payable at the bank is called .......... (Domiciliation of a B/E)

33. Honouring of a cheque is a .......... obligation. (Statutory)

34. The relationship between the banker and customer is primarily that of a .......... (Debtor and creditor)

35. The minimum period for which a fixed deposit can be accepted is .......... (45 days)

36. Money can be withdrawn any number of times in .......... (Current A/C)

37. ..........must be obtained from a responsible person before opening an account. (A letter of introduction)

38. If there are no withdrawals for a period of 12 months in a savings bank account, the account is said to be .......... (Dormant)

BANKING AWARENESS SET 6

1.Which of the following bodies tightened the norms for foreign exchange risk cover in India mentioning that only companies with a networth of Rs 200 crore can use derivatives to hedge against risk of volatility in currency rates?
a. IMF
b.Reserve Bank of India
c. SEBI
d.Union Ministry of Finance
Ans: b

2. Which body in India finally provided tax exemption on the 9.5 per cent interest income on PF deposits for 2010-11?
a.Reserve Bank of India
b. Income Tax Department
c.Employees’ Provident Fund Organisation
d.Corporate Affairs Ministry
Ans: b

3.(1) The report on Customer Service in Banks by a committee chaired by M. Damodaran, former Chairman of the Securities and Exchange Board of India (SEBI) that was released on 3 July 2011 recommended an increased deposit insurance cover of Rs.5 lakh so as to encourage individuals to keep all their deposits in banks.
(2) The panel also suggested blocking of lost ATM cards through SMS and immediate restoration of funds in case of non-dispensation of cash at an ATM within 5 working days.
Which of the above is not true?
a. Only 1
b. Only 2
c. Both 1 & 2
d. None of the above
Ans: b

4. The Reserve Bank of India (RBI) in a bid to tame inflationary pressure hiked the short-term indicative policy rate (repo rate) by 50 basis points on 26 July 2011. The repo rate currently stands at what percentage?
a. 7%
b. 7.5%
c. 8%
d. 8.5%
Ans: c

5. Which bank posted a 99 per cent drop in net profit at Rs 21 crore for the fourth quarter ended 31 March 2011 against Rs 1867 crore during the corresponding period in 2010?
a. Indian Overseas Bank
b. State Bank of India
c. Bank of India
d. United Bank of India
Ans: b

6. Who did global payments processing company MasterCard appoint as the General Manager, South Asia and Country President, India?
a. T. V. Seshadri
b. Vicky Bindra
c. Tunde Lemo
d. Ajay Banga
Ans: a

7. Government of India on 19 July 2011 appointed Usha Ananthasubramanian, former general manager of Bank of Baroda (BoB) as executive director of which public sector lender?
a. Central Bank of India
b. Punjab National Bank
c. United Bank of India
d. Gramin Bank
Ans: b

8. Name the public sector lender that selected Metlife as its partner for a proposed foray into the life insurance segment.
a. Syndicate Bank
b. Punjab National Bank
c. Corporation Bank
d. United Bank of India
Ans: b

9. Which bank signed a memorandum of understanding with Dewan Housing Finance Corporation (DHFL) under which DHFL will distribute home loans to Yes Bank's customers?
a. Canara Bank
b. ABN Amro bank
c. Yes Bank
d. HSBC
Ans: c

10. Which life insurance company in India launched a new non-linked health insurance plan, Jeevan Arogya?
a. HDFC Standard Life Insurance Co. Ltd
b. Life Insurance Corporation of India
c. IDBI Fortis Life Insurance Company Ltd.
d. SBI Life Insurance Co. Ltd
Ans: b

11. Which of the following public sector banks in November 2011 froze its lending to the power sector?
a. State Bank of India
b. Allahabad Bank
c. Punjab National Bank
d. United Bank of India
Ans: b

12. Which Indian bank on 10 May 2011 raised benchmark prime lending rate 75 basis points to 14% following raising of interest rates by RBI by basis points on 3 May 2011?
a. State Bank of India
b. Union Bank
c. Punjab National Bank
d. Bank of Baroda
Ans: a

13. The Reserve Bank of India on 26 April 2011 fined 19 banks, including the country's top private and foreign banks for violating its guidelines on derivatives. Which is the only public sector bank on the list of banks to be fined?
a. State bank of India
b. Punjab National Bank
c. Bank of India
d. Indian Bank
Ans: a

14. The Reserve Bank of India on 25 August 2011 released its Annual Report for 2010-11. Which of the following was not discussed in the Annual Report the Central Board of the RBI?
a. assessment of the macroeconomic performance during 2010-11
b. prospects for 2011-12
c. working and operations of the Reserve Bank and its financial accounts
d. role of regulatory bodies in controlling the financial markets
Ans: d

15. Reserve Bank of India (RBI) panel headed by headed by Usha Thorat, Director, Centre for Advanced Financial Research and Learning (CAFRAL) on 29 August 2011 came up with suggestion on non-banking finance company (NBFC). Which of the following related to this statement is not true?
1. The panel suggested the central bank to insist on a minimum asset size of more than Rs.25 crore for registering any new non-banking finance company (NBFC)
2. Transfer of shareholding, direct or indirect, of 25 per cent and above, change in control, merger or acquisition of any registered NBFC will require prior approval of the Reserve Bank.
3. Tier-I capital for capital to risk weighted assets ratio (CRAR) purposes would be specified at 12 per cent to be achieved in three years for all registered deposit-taking and non-deposit-taking NBFCs.
4. NBFCs would be subject to regulations similar to banks while lending to stock brokers and merchant banks and similar to stock brokers, as specified by the Securities and Exchange Board of India (SEBI)
a. 1 & 4
b. 2 & 4
c. Only 4
d. Only 1
Ans: d

16. Which Indian PSU bank in tune with its plans to expand its retail division in the UK entered the mortgage market in the country for the first time?
a. Punjab National Bank
b. Oriental Bank of Commerce
c. State bank of India
d. Indian Overseas Bank
Ans: c

17. Which of the following banks set up two loan processing centres for the small and medium enterprise (SME) segment on a pilot basis in Bangalore & in New Delhi in September 2011?
a. Corp Bank
b. United Bank of India
c. Syndicate Bank
d. Bank of Baroda
Ans: c

18. The government suspended M Ramadoss for alleged violations in issuing insurance cover to an airline during his stint as head of another state-run insurer. To which insurance group did he belong to?
a. New India Assurance
b. LIC
c. GIC
d. ICICI Insurance
Ans: a

19. Which of the following banks in early May 2011 entered into a tie-up with non-banking finance companies such as Future Capital, Bajaj Finance, and Reliance Capital to grow its retail portfolio?
a. Central Bank of India
b. State Bank of India
c. Bank of India
d. HDFC Bank
Ans: a

20. Which are the two Gujarat-based cooperative sector lenders on which Reserve bank of India imposed a financial penalty of Rs 1 lakh each for violation of various rules, including anti-money laundering guidelines?
1. Shree MahalaxmiMercantile Co-operative Bank
2. Rander People's Co-operative Bank
3. Abad District Co Op Bank
4. Ahd Mercantile Co-Op Bank Ltd
a. 1 & 2
b. 2 & 3
c. 1 & 4
d. 3 & 4
Ans: (a)

BANK EXAM QUESTIONS SET 4

126. Margin of surrender value for the purpose of bank loan is retained to the extent of
(a) 5%
(b) 8%
(c) 10%
(d) 15%
ANS : C

127. Selective credit control covers
(a) Margin
(b) Interest
(c) Level of credit
(d) All the above
ANS : D

128. Under which provisions is Selective credit control governed?
(a) Section 49 of the Banking Regulation Act
(b) Section 3 of the Public Debt Act
(c) Section 21 of the RBI Act
(d) Section 131 of the Negotiable Instrument Act
ANS : C

129. Pledge of advance is made against
(a) Gold
(b) Commodities
(c) Coins and notes
(d) All the above
ANS : B

130. What rate of interest is charged on the advances made against Duty Draw Back Scheme?
(a) Same as of export advance
(b) Same as on working capital
(c) Same as of export refinance
(d) Nil
ANS : D

131. Contract of insurance is a contract of
(a) Agency
(b) Indemnity
(c) Bailment
(d) Guarantee
ANS : B

132. The insurance policy over the security is arranged for in the name of the
(a) Borrower and endorsed in favour of the bank
(b) Bank
(c) Borrower
(d) None of the above
ANS : A

133. Bank becomes pledge over the
(a) Supply bills
(b) Demand bills
(c) Import bills
(d) Export bills
ANS : C

134. Who registers the firm?
(a) Deputy Commissioner
(b) Bank
(c) Registrar of Firms
(d) Registrar of Companies
ANS : C

135. Which of the following are covered under pledge?
(a) Actual delivery of the goods
(b) Factory type pledge
(c) Constructive delivery of the goods
(d) All the above
ANS : D

136. Cash credit accounts are closed
(a) On the death of the agent
(b) On the death of the principal
(c) On the death of the Managing Director of the company
(d) None of the above
ANS : B

137. Industrial co-operatives covered under SSI can raise loan without ceiling. The loan will be refinanced by
(a) IDBI
(b) RBI
(c) NABARD
(d) DICGC
ANS : C

138. What is the minimum period of medium and long-term loans?
(a) 12 months
(b) 18 months
(c) 24 months
(d) 36 months
ANS : B

139. Which bank does not belong to State Bank Group?
(a) State Bank of Indore
(b) Banaras State Bank
(c) State Bank of Bikaner and Jaipur
(d) State Bank of Patiala
ANS : B

140. For which are the reserves maintained before issuing the following?
(a) One rupee notes
(b) One rupee coins
(c) All notes and coins
(d) RBI notes
ANS : D

141. At the time of first nationalisation which bank had the highest deposits?
(a) Punjab National Bank
(b) Canara Bank
(c) Central Bank of India
(d) Bank of India
ANS : C

142. New branch in rural and semi-urban area should cover an average population of over
(a) 13,000
(b) 17,000
(c) 20,000
(d) 25,000
ANS : A

143. The exchange rate is kept the same in all parts of the market by
(a) Speculation
(b) Interest arbitrage
(c) Exchange arbitrage
(d) Hedging
ANS : C

144. If all the banks in an economy are nationalised and converted into a monopoly bank, total deposit creation
(a) Will increase
(b) Will decrease
(c) Will neither increase nor decrease
(d) All the above
ANS : C

145. The purpose of international trade is
(a) Need for exports
(b) To encourage exports
(c) To promote international understanding
(d) To increase income of participation countries
ANS : D

146. The power of banks to create credit depends on
(a) Amount of cash with them and the safe ratio
(b) Safe ratio only
(c) Amount of cash with them only
(d) None of the above
ANS : A

147. The money the banker creates is
(a) His asset
(b) His liability
(c) Both his asset and liability
(d) None of the above
ANS : B

148. High rate of investment may
(a) Reduce the amount of credit creation
(b) Create better chances for the credit creation
(c) Not affect the amount of credit in any way
(d) Lead to any of the above-mentioned occurrences
ANS : B

149. The ‘monetary base for credit expansion’ consists of
(a) The total value of ‘high-powered money’
(b) The demand and time deposit liabilities
(c) The size of the deficit in the government’s budget
(d) All of these
ANS : A

150. A rise in the reserve ratio of banks
(a) Will lead to an increase in the money supply
(b) Will lead to a proportionate increase in the money
(c) Will lead to a decrease in the money supply
(d) None of these
ANS : C

151. The largest nationalised bank of India is
(a) Central Bank of India
(b) State Bank of India
(c) Bank of India
(d) Reserve Bank of India
ANS : B

152. Commercial banks influence money supply through
(a) Printing of one rupee notes
(b) Augmentation of savings and time deposits
(c) Provision of high denomination notes
(d) Creation of demand deposits
ANS : D

153. Which institution grants financial assistance exclusively to the private sector industries in our country?
(a) Unit Trust of India
(b) Life Insurance Corporation of India
(c) Industrial Credit and Investment Corporation of India
(d) Industrial Finance Corporation of India
ANS : C

154. Who grants subsidy?
(a) Government of India
(b) State Government
(c) RBI
(d) SBI
ANS : A

155. Minimum cash reserves fixed by law constitute
(a) A percentage of aggregate deposits of the bank
(b) A percentage of aggregate loans and advances of the bank
(c) A percentage of capital and reserves of the bank
(d) None of the above statements is correct
ANS : A

156. The difference between the correct market value and the loan value of a given security in banking terms, is known as
(a) The collateral value
(b) The security value differential
(c) The margin
(d) All the above
ANS : C

157. An increase in bank rate, other things being equal, will result into
(a) A decline in the cost of credit including greater and the demand for borrowing
(b) An increase in the cost of credit discouraging demand for credit
(c) No change in the cost of credit and the demand for borrowing
(d) Cost of credit has no relationship with demand for borrowing
ANS : B

158. Inward remittances by foreign steamship and airlines companies to finance their operating expenses in the country are shown under
(a) The credit side of the current account of balance of payment
(b) The debit side of the current account of balance of payment
(c) The credit side of the capital/account of balance of payment
(d) The debit side of the capital account of balance of payment.
ANS : A

159. How many copies of bank’s lien are sent to the company?
(a) One
(b) Two
(c) Three
(d) Four
ANS : B

160. Find out the correct statement
(a) ‘Selective credit controls are superfluous in general monetary management
(b) ‘Selective credit controls have inverse relationship with quantitative instruments of credit control
(c) ‘Selective credit controls are complimentary to quantitative instruments of credit control
(d) None of above statements is correct
ANS : C

161. Bank rate policy as a weapon of credit control has emerged from the Central Bank’s function as
(a) Bank of issue
(b) Lender of the last resort
(c) Banker’s bank
(d) All the above
ANS : B

162. Open market operations are mainly used as
(a) A fiscal device which assists Government borrowing
(b) A monetary measure to regulate quantity of money in circulation and the cash reserves of the commercial banks
(c) A measure to counteract extreme trends in business
(d) A measure to influence the balance of payments position
ANS : B

163. The variable reserve ratio has tremendous possibilities of effective credit control in
(a) Under-developed economies
(b) Developed economies
(c) Both developed and under-developed economies
(d) Neither developed nor under-developed economies
ANS : A

164. Discount rate on certificate of deposits is decided by
(a) RBI
(b) IBA
(c) SBI
(d) None of these
ANS : D

165. Sources to meet working capital are
(a) Net working capital or liquid surplus
(b) Sundry creditors and advance payment received
(c) Bank finance for working capital
(d) All the above jointly
ANS : D

166. What is Debt Equity Ratio?
(a) Ratio of long-term borrowing to tangible net worth
(b) Ratio of current assets to own tangible net worth
(c) Ratio of fixed assets to tangible net worth
(d) None of the above
ANS : A

167. Intangible assets are
(a) Preliminary expenses
(b) Patents, copyright, goodwill
(c) Losses which cannot be reduced from share capital
(d) All the above
ANS : D

168. What is Current Ratio?
(a) Ratio of total assets to total liabilities
(b) Earning capacity of unit
(c) Ratio of current assets to current liabilities
(d) None of the above
ANS : C

169. Current Ratio represents
(a) Ability of the unit to meet its current liabilities out of current assets
(b) Ability of easy profit
(c) Ability of the unit to pay instalments of term-loan
(d) None of the above
ANS : A

170. Liability-side of the balance-sheet comprises
(a) Capital and reserve
(b) Long-term liabilities
(c) Current liabilities
(d) All the above
ANS : D

171. The 15th day of a month is known as
(a) Customer’s Day
(b) Complaints Day
(c) Holiday
(d) None of the above
ANS : A

172. Inter-bank participation certificates are issued on the recommendations of which committee?
(a) Ghosh
(b) Vaghul
(c) Chakravarthy
(d) Narasimhan
ANS : B

173. A transferable letter of credit cannot be transferred more than
(a) Once
(b) Twice
(c) Three times
(d) Four times
ANS : A

174. If the word irrevocable or revocable is not indicated in a letter of credit, then the credit shall be deemed as
(a) Revolving credit
(b) Standby credit
(c) Revocable credit
(d) Irrevocable credit
ANS : C

175. Service charges on Foreign Letter of Credit are fixed by
(a) IBA
(b) FEDAI
(c) RBI
(d) IBRD
ANS : B

176. Exchange portion of Demand Bills purchased is credited to which account?
(a) Discount
(b) Commission
(c) Exchange
(d) Interest
ANS : D

177. Unclaimed pass-books lying with the bank may be cancelled and destroyed after how many years?
(a) 2
(b) 3
(c) 5
(d) 10
ANS : B

178. The Government has allowed certain remission on which of the following bills?
(a) Usance
(b) Demand
(c) Exchange
(d) All the above
ANS : A

179. Export Credit Packing Advances sanctioned to SSI exporters are covered under the credit guarantee scheme of
(a) DICGC
(b) ECGC
(c) DRI
(d) None of the above
ANS : B

180. Total investment in a company is
(a) Net fixed assets
(b) Shareholder’s funds plus term-liabilities
(c) The total assets of the company
(d) None of the above
ANS : B

181. The Deposit Insurance Credit Guarantee Scheme was formed on
(a) July 1, 1975
(b) January 1, 1952
(c) January 1, 1962
(d) January 1, 1991
ANS : C

182. At present (March 1998) the maximum bank’s deposit interest rate is
(a) 9%
(b) 10%
(c) 11%
(d) 12%
ANS : C

183. Banker’s cheque is valid from the issue date for
(a) 3 months
(b) 6 months
(c) 12 months
(d) 24 months
ANS : B

184. Remittance means
(a) Despatch of issuable notes
(b) Despatch of solid notes
(c) Despatch of coins
(d) All the above
ANS : D

185. For which of the following, minor is nor eligible for
(a) Making a will
(b) Taking a locker in his name
(c) Appointing nominee of a locker
(d) All the above
ANS : D

186. A branch can be kept opened for Government business on a public holiday on the orders of the
(a) Collector
(b) Branch Manager
(c) Governor of the RBI
(d) Prime Minister
ANS : A

187. Who pays commission to banks for conducting Government business?
(a) Government of India
(b) State Government
(c) RBI
(d) Central and State Governments
ANS : C

188. Which country has the lowest rate of interest on advances?
(a) India
(b) Switzerland
(c) Japan
(d) USA
ANS : B

189. Concept of Banking Secrecy was converted into law in
(a) 1924
(b) 1927
(c) 1930
(d) 1934
ANS : D

190. The shares must be transferred in favour of the bank if the advance exceeds
(a) 1 lakh
(b) 2 lakhs
(c) 3 lakhs
(d) 5 lakhs
ANS : C

191. Bank’s charge over boats is registered with
(a) RBI
(b) SBI
(c) Port authorities
(d) Government of India
ANS : C

192. In April 2000 India’s trade deficit (exports and imports) was $ billion
(a) 220.4
(b) 112.3
(c) 467.8
(d) 100.5
ANS : B

193. With regard to the export policy of the Government of India, find out the correct statement
(a) All commodities can be exported without licence
(b) Export licences are required for only a few items
(c) Export licences are required for all items
(d) All the above
ANS : C

194. We can open a savings bank account in the sole name of a minor if he completes age of
(a) 6 (b) 10
(c) 18 (d) 21
ANS : B

195. The Banking Regulations Act, 1949 was enacted to
(a) Nationalise the banks
(b) Open regional rural banks
(c) Consolidate and amend the laws relating to banking companies
(d) Inviting foreign banks
ANS : C

196. The Banking Regulation Act was implemented on
(a) September 6, 1949
(b) April 1, 1949
(c) March 16, 1949
(d) March 31, 1949
ANS : C

197. The fourteen banks were nationalised on
(a) July 19, 1969 (b) June 1, 1969
(c) June 16, 1969 (d) July 1, 1969
ANS : A

198. The banks were nationalised with the motive to
(a) Develop the country economically
(b) Give priority to neglected sectors and exports
(c) Extend finances to weak and backward areas
(d) All the above
ANS : D

199. The fourteen banks which were nationalised were having total deposits
(a) Rs. 10 crores or above
(b) Rs. 25 crores or above
(c) Rs. 50 crores or above
(d) Rs. 75 crores or above
ANS : C

200. The remaining six banks were nationalised on
(a) April 15, 1980
(b) April 5, 1980
(c) April 1, 1980
(d) none of the above
ANS : A

BANK EXAM QUESTIONS SET 3

76. Maximum period of a usance bill considered by bank is
(a) 6 months
(b) 9 months
(c) 12 months
(d) 24 months
ANS : A

77. Which of the bills has no grace period?
(a) Demand bill
(b) Clean bill
(c) Sight bill
(d) All the above
ANS : D

78. After acceptance, the primary liability on a Bill of Exchange is that of
(a) Payee
(b) Acceptor
(c) Drawee
(d) Endorsee
ANS : B

79. Which of the following are accommodation bills?
(a) House bills
(b) Bills representing trading transactions
(c) Bills accepted with consideration
(d) None of the above
ANS : A

80. Under the Sale of Goods Act, a warehouse-keeper’s certificate is a
(a) Contract of sale
(b) Contract of pledge
(c) Document of title to goods
(d) Contract of lease
ANS : C

81. The Government derives maximum revenue from
(a) Income tax
(b) Customs
(c) Sales tax
(d) Excise duty
ANS : D

82. Which of the following may be adjudged as insolvent?
(a) Minor
(b) Married woman
(c) Firm
(d) Lunatic
ANS : B

83. X and Y have joint account. A Garnishee order was served on X who does not have an individual account. Bank shall
(a) Attach the joint account
(b) Attach 50% of the joint account like attachment
(c) Not attach the joint account
(d) All the above
ANS : C

84. Non-registered firm cannot
(a) Sue its partners or debtors
(b) Be sued by its creditors
(c) Be sued by its own partners
(d) None of the above
ANS : A

85. Sets of Garnishee Order
(a) 3
(b) 5
(c) 4
(d) 2
ANS : D

86. Appropriation of accounts is provided in
(a) Negotiable Instruments
(b) Banking Regulation Act, 1949
(c) Indian Contract Act, 1872
(d) All the above
ANS : B

87. A cheque becomes stale after
(a) 2 months
(b) 3 months
(c) 6 months
(d) 12 months
ANS : C


88. Bank conducts Government business at its branches as an agent of
(a) RBI
(b) SBI
(c) Government of India
(d) None of the above
ANS : A

89. The validity period of a challan/bill passed by a Treasury Officer is for
(a) 7 days
(b) 10 days
(c) 14 days
(d) 20 days
ANS : B

90. A draft for Rs. 18,000 is issued in which series?
(a) OT
(b) TT
(c) OL
(d) OM
ANS : C

91. Minimum period for which a locker can be hired is
(a) 1 week
(b) 3 months
(c) 6 months
(d) 12 months
ANS : C

92. When a fixed deposit receipt is kept with the bank for its safety, it is known as
(a) Safe custody
(b) Safe deposit
(c) Locker
(d) Valid safe deposit
ANS : A

93. Rupee Traveller Cheques are for a period of
(a) 6 months
(b) 12 months
(c) 24 months
(d) Unlimited
ANS : D

94. India’s 7th Export Processing Zone is being set up at
(a) Mumbai
(b) Visakhapatnam
(c) Cochin
(d) Chennai
ANS : C

95. Gilt-edged securities are
(a) Shares of a private limited company
(b) First-class Government securities
(c) Shares of a company
(d) None of the above
ANS : B

96. Certificate of Deposits can be issued for a minimum period of
(a) 45 days
(b) 3 months
(c) 6 months
(d) 1 year
ANS : B

97. Telegraphic Transfer Receipt is a
(a) Bearer instrument
(b) Order instrument
(c) Non-negotiable
(d) Business letter
ANS : C

98. A gift cheque is
(a) A negotiable instrument
(b) An order instrument
(c) Simple receipt
(d) A quasi-negotiable instrument
ANS : C

99. If a payee of a mail transfer does not maintain account
(a) Banker’s cheque will be issued
(b) M. T. will be credited to Sundry Deposit Account
(c) Draft will be issued
(d) New account will be opened
ANS : A

100. Which of the following can delegate his power to a third person?
(a) Liquidator
(b) Executor
(c) Individual
(d) Partner
ANS : C

101. Overdue interest for all types of deposits can be paid in cash to
(a) Minor
(b) Guardian
(c) Depositor
(d) Legal heirs of a deceased depositor
ANS : D

102. Which of the following has been withdrawn?
(a) Credit Monitoring System
(b) Credit Authorisation Scheme
(c) Credit Monitoring Arrangement
(d) None of the above
ANS : B

103. An executor of deceased account is appointed under
(a) Trust
(b) Court
(c) Will
(d) Family tradition
ANS : C

104. Service area approach has been launched from
(a) January 1, 1990 (b) April 1, 1989
(c) April 1, 1992 (d) July 1, 1992
ANS : B

105. While granting an overdraft against the security of life insurance policy, the
advance value is computed on the basis of
(a) Total amount of the policy
(b) Paid-up value of the policy
(c) Surrender value of the policy
(d) None of the above
ANS : C

106. Book-debits of a company can be charged to the bank by way of
(a) Hypothecation
(b) Pledge
(c) Mortgage
(d) Lien
ANS : A

107. Which of the following has issued Master shares?
(a) RBI
(b) SBI
(c) UTI
(d) LIC
ANS : C

108. Which of the following schedules of Indian constitution deals with banking?
(a) 5th
(b) 6th
(c) 7th
(d) 8th
ANS :

109. Is there any limit for a currency transfer?
(a) 10 lakhs
(b) 25 lakhs
(c) No limit
(d) 1 crore
ANS : C

110. Currency notes deposited in the currency chest are the property of
(a) Respective bank
(b) RBI
(c) SBI
(d) Government of India
ANS : B

111. The minimum amount to effect a currency transfer is
(a) Rs. 500
(b) Rs. 2,000
(c) Rs. 1,000 withdrawal deposit Rs. 500
(d) Rs. 5,000 multiples of Rs. 1,000
ANS : C

112. Relationship between the RBI and the bank maintaining currency chest will be of
(a) Trustee and beneficiary
(b) Principal and agent
(c) Licensor and licensee
(d) Creditor and debitor
ANS : C

113. Indian currency means
(a) One-rupee notes and coins under Indian Coinage Act, 1906
(b) Notes only
(c) Coins only
(d) None of the above
ANS : A

114. Which of the following notes cannot be exchanged?
(a) Solid notes
(b) Mismatched notes
(c) Mutilated notes
(d) All the above
ANS : B

115. Daily operations on the currency chest are advised to
(a) RBI
(b) Concerned bank
(c) Main branch of the district
(d) Through link branch to RBI
ANS : D

116. Suprious coins detected at the counter are sent to
(a) Mint
(b) Government of India
(c) RBI
(d) IBRD
ANS : A

117. Signature on Re. 1 note is made by the Finance Secretary but on the other notes by
(a) Prime Minister
(b) President of India
(c) Governor of Reserve Bank of India
(d) Finance Minister
ANS : C

118. On a cheque instead of two parallel lines only bank’s name is written. It is a
(a) General crossing
(b) No crossing
(c) Payable to bearer
(d) Special crossing
ANS : D

119. A holder in due course of a cheque does not get protection from
(a) Irregularity of endorsement
(b) Without consideration
(c) Default in the title
(d) All the above
ANS : B

120. What is the minimum period of reinvestment deposits?
(a) 1 month
(b) 2 months
(c) 3 months
(d) 6 months
ANS : D

121. Which of the following is a borrowing facility/loan advance?
(a) Term finance
(b) Performance guarantee
(c) Bill received under letter of credit
(d) All the above
ANS : A

122. Fixed assets ratio means
(a) Fixed assets to paid-up capital
(b) Net fixed assets to long-term funds
(c) Net worth
(d) None of the above
ANS : B

123. A decline in the current ratio and liquidity ratio indicates
(a) Sound position
(b) Solvency
(c) Over trading
(d) Off shore
ANS : C

124. Marginal cost means
(a) Raw-material selling expenses and other variable expenses
(b) Prime cost
(c) Margin of sales
(d) None of the above
ANS : A

125. Assignment means transfer of
(a) Ownership only
(b) Possession only
(c) The policy-holder only
(d) A debit/right/property only
ANS : D

BANK EXAM QUESTIONS SET 2

26. When was SBI established ?
(a) April 1, 1935   (b) July 31, 1969
(c) May 5, 1955    (d) July 1, 1955
ANS : D

27. Presently, the number of the public sector banks in India is
(a) 8    (b) 20
(c) 28 (d) 14
ANS : C

28. The maximum number of partners in a non-banking partnership firm is
(a) 20    (b) 10
(c) 25    (d) 11
ANS : A

29. Which of the following banks are not commercial banks ?
(a) Foreign Banks     (b) State Co-operative Banks
(c) Private Banks      (d) Regional Rural Banks
ANS : B

30. Regional rural banks are managed by
(a) The Central Government    (b) The RBI
(c) The Board of Directors      (d) The State Government
ANS : C

31. Under which of the following methods of note-issue the RBI issues notes?
(a) Fixed Fiduciary System     (b) Maximum Fiduciary System
(c) Minimum Reserve System (d) Proportional Reserve System
ANS : C

32. Cash deposit ratio means
(a) The percentage of cash-in-hand-balance with the Central Bank to the aggregate deposits
(b) The percentage of total cash money received as deposits by banks
(c) All the above
(d) None of the above
ANS : A

33. Lead Bank Scheme was introduced in
(a) 1965    (b) 1969
(c) 1981    (d) 1992
ANS : B

34. A rise in the reserve ratio of banks
(a) Will lead to an increase in the money supply
(b) Will lead to a proportionate increase in the money supply
(c) Will lead to a decrease in the money supply
(d) None of these
ANS : C

35. Negotiable Instruments Act contains Sections as
(a) 137    (b) 142
(c) 138    (d) 141
ANS : B

36. Presently which bank is having the largest number of foreign branches?
(a) SBI        (b) Canara Bank
(c) Bank of Baroda     (d) Bank of India
ANS : C

37. A usance bill can be drawn for a minimum period of
(a) 1 day     (b) 2 days
(c) 3 days    (d) 4 days
ANS : A

38. Savings bank deposits are exempted from wealth tax up to
(a) 2 lakhs     (b) 5 lakhs
(c) 10 lakhs    (d) 20 lakhs
ANS : B

39. The amount of unclaimed banker’s cheques is credited to
(a) Respective LHO        (b) Respective Module
(c) Charges A/c (Misc)    (d) Commission A/c
ANS : D

40. SBI is having maximum number of foreign offices in
(a) U.S.A.               (b) U.K.
(c) West Germany   (d) Japan
ANS : B

41. How many export processing zones are in India?
(a) 5    (b) 6
(c) 7    (d) 8
ANS : B

42. FCNR accounts can be opened and maintained as
(a) Current Accounts            (b) Savings Bank Accounts
(c) Term Deposit Accounts   (d) Recurring Deposits
ANS : C

43. In the case of FCNR accounts the payment of interest is effected in
(a) Indian Rupee
(b) Only in Pound (£)
(c) Same currency in which deposit stands
(d) Yen
ANS : C

44. What comprises financial statement ?
(a) Profit and Loss Account    (b) Balance sheet
(c) Funds-flow-statement       (d) All the above
ANS : D

45. Profit and Loss Account represents
(a) Position of profit on a particular date
(b) Position of profit for a given period
(c) Position of loss for a given period
(d) B and C above
ANS : D

46. Balance sheet is
(a) Statement of assets and liabilities on a particular date
(b) Statement of profit and loss on a particular date
(c) Position of cash balance
(d) Statement of assets and liabilities for a particular year
ANS : A

47. Balance sheet analysis helps in
(a) Ratio analysis              (b) Trend
(c) Inter-firm comparison  (d) All the above
ANS : D

48. Banks are required to maintain SLR under
(a) Section 24 of the Banking Regulation Act
(b) Section 49 of the Banking Regulation Act
(c) Section 24 of RBI Act
(d) None of the above
ANS : A

49. CRR is required to maintain in the form of
(a) Approved Government Securities
(b) Cash with RBI
(c) Cash with bank
(d) All the above
ANS : B

50. Working capital requirement depends upon
(a) Level of activity     (b) Types of business carried
(c) All the above         (d) None of the above
ANS : C

51. For which of the following categories the payment can be stopped ?
(a) Gift cheque          (b) Cheque
(c) Bill of Exchange   (d) Promissory Notes
ANS : B

52. The introducer is liable to the bank under the
(a) Indian Penal Code   (b) RBI Act
(c) Contract Act            (d) NI Act
ANS : B

53. Cheque bearing ‘Non-negotiable’ crossing is endorsed to other person.
In this case the endorsee becomes
(a) Holder for value    (b) Holder in due course
(c) Holder only         (d) Endorsee only
ANS : A

54. Which of the following are legal tender?
(a) Drafts                 (b) Cheques
(c) Currency notes   (d) Government drafts
ANS : C

55. In which of the Acts specimen of the cheque, bill, promissory note is given?
(a) Negotiable Instruments Act (b) Banking Regulation Act
(c) Mercantile Law (d) None of the above
ANS : D

56. Which of the following negotiable instruments can be crossed to the banks?
(a) Cheques              (b) Drafts
(c) Bills of Exchange (d) All the above
ANS : C

57. Which of the following can be issued payable to bearer?
(a) Cheque               (b) Draft
(c) Bill of Exchange   (d) Demand Promissory Notes
ANS : A

58. Protection is available to the collecting bank for the following
(a) Bill of Exchange     (b) Promissory Note
(c) Usance Bills           (d) Cheque
ANS : D

59. Crossing denotes
(a) Cheque cannot be transferred by the payee.
(b) A direction to the paying bank to pay the Cheque through a bank.
(c) Cheque will be paid through clearing only.
(d) Not payable across the counter but will be credited to the account of the holder.
ANS : D

60. A ‘Non-negotiable’ crossing is a
(a) General crossing          (b) Special crossing
(c) Restricted crossing       (d) Non-transferable crossing
ANS : A

61. A minor is admitted to the partnership firm as
(a) Agent     (b) Partner
(c) Minor     (d) Beneficiary
ANS : D

62. Legal guardian of minor is
(a) Nominated by the court for legal decision
(b) Appointed by the court
(c) Natural guardian
(d) Executor-administrator appointed by the court
ANS : B

63. A shareholder has been defined by
(a) The Banking Regulation Act, 1949
(b) The Companies Act, 1956
(c) The Securities Contract Regulation Act, 1956
(d) Indian Contract Act
ANS : B

64. What is the maximum period for which a Public Limited Company can raise deposits from the public?
(a) 12 months     (b) 18 months
(c) 36 months     (d) 24 months
ANS : C

65. Group of companies/firms/associates is defined in
(a) Companies Act     (b) Sale of Goods Act
(c) Contract Act         (d) Partnership Act
ANS : A

66. Which of the following cheques if paid do not get statutory protection?
(a) Bearer cheques    (b) Open cheques
(c) Stolen cheques     (d) All the above
ANS : B

67. Period of limitation for deposits starts from
(a) Date of the cheque
(b) Date of presenting cheque on the counter
(c) Date of making deposits
(d) Date of refusal by the bank
ANS : B

68. Who supplies interest-charts for different maturities and for different rates of interest ?
(a) IBA                           (b) RBI
(c) Government of India   (d) IBRD
ANS : A

69. The minimum period under which a term deposit under Reinvestment Plan can be issued is
(a) 24 months    (b) 12 months
(c) 6 months      (d) 9 months
ANS : C

70. Rates of Interest on deposits are determined by
(a) IBA      (b) Ministry of Finance
(c) RBI      (d) Government of India
ANS : C

71. Interest on the savings bank accounts is compounded
(a) Monthly     (b) Yearly
(c) Quarterly   (d) Half-yearly
ANS : D

72. What is the limitation of the number of persons in a joint savings bank account?
(a) Two     (b) Four
(c) Five      (d) No limit
ANS : D

73. The minimum average balance required to be maintained in a current account to avoid payment of ‘ledger fee’ is
(a) Rs. 500 credit      (b) Rs. 1,500 credit
(c) Rs. 1,500 debit    (d) Rs. 2,000 credit
ANS : B

74. Current account becomes dormant when there are no withdrawals for the last
(a) 3 months (b) 6 months
(c) 12 months (d) 18 months
ANS : B

75. How do you consider Joint Hindu Family?
(a) Legal entity                (b) Association of persons
(c) Partnership concern    (d) All the above
ANS : A

BANK EXAM QUESTIONS SET 1

1. A banker should not grant loans and advances against
(a) Unquoted shares   (b) Partly paid-up shares
(c) Its own shares      (d) Third party’s shares
ANS :C

2. In the case of a life policy, the banker should see
(a) The existence of insurable interest   (b) The surrender value
(c) The admission of age                      (d) All of the above
ANS :D

3. The most risky document of title to goods from the banker’s point of view is
(a) Delivery order                            (b) Bill of lading
(c) Warehouse keeper’s certificate (d) Railway receipt
ANS :C

4. A legal title over shares is created
(a) By simply depositing the shares               (b) By depositing the shares along with a blank transfer
(c) By depositing shares along with a memorandum          (d) By executing a transfer deed
ANS :D

5. The rules framed in the Clayton’s case have been incorporated in
(a) The Banking Regulation Act    (b) The Reserve Bank of India Act
(c) The Indian Contract Act          (d) The Negotiable Instruments Act
ANS :C

6. The limitation period in case of a bank deposit begins from
(a) The date on which deposit was made
(b) The date on which the demand for payment was made
(c) The date on which first withdrawal is made
(d) None of the above
ANS :B

7. When a debtor owes several debts to a banker and makes a payment, the right of appropriation lies with
(a) The banker       (b) The debtor
(c) The court          (d) None of the above
ANS :B

8. A Garnishee order is served on A and B jointly. They maintain a joint account as well as individuals accounts with the bank. The order shall attach
(a) Only the joint account of A and B                              (b) Only the individual accounts of A and B
(c) The joint as well as individual accounts of A and B     (d) None of the above
ANS :C

9. In terms of Section 31 of the Reserve Bank of India Act, 1934 a demand draft payable to bearer may be issued only by
(a) Nationalised Banks              (b) Scheduled Commercial Banks
(c) Reserve Bank of India           (d) Foreign Banks
ANS :C

10. The payment of a lost demand draft is made to the
(a) Purchaser               (b) Payee
(c) Nominee                (d) None of the above
ANS :A

11. In case of original demand draft is presented after the duplicate has already been paid, the bank will
(a) Pay the original demand draft as well and recover the amount from the purchaser on the strength of the indemnity bond
(b) Return with remarks “Draft reported lost, duplicate already paid will pay on collecting bank’s guarantee. In case the original draft is again presented, it should be honoured.”
(c) Return with the remarks payment stopped by the payee
(d) None of the above
ANS :A

12. Unsigned demand draft is presented for payment, the drawee branch will
(a) Honour it
(b) Dishonour it since it does not have a mandate of the drawer bank to pay it.
(c) Honour it after seeking confirmation from the collecting bank
(d) Honour it if it is for small amount
ANS :B

13. Traveller’s cheques are valid for
(a) Three months           (b) Six months
(c) One year                 (d) No limit-are valid till encashed
ANS :D

14. Do the banks issue traveller’s cheques to non-customers also?
(a) Yes                                         (b) No
(c) No - only people of repute     (d) No - only to people having annual income above Rs. 60,000
ANS :A

15. Are the traveller’s cheques subject to stamp duty in India?
(a) Yes                                (b) No
(c) Yes, all traveller’s cheques above the value of Rs. 1,000
(d) Yes, all the traveller’s cheques above the value of Rs. 5,000
ANS :B

16. Minimum balance required to be maintained for cheque book facility
(a) Rs. 100              (b) Rs. 200
(c) Rs. 500              (d) Rs. 1000
ANS :D

17. The committee on Banking Sector Reforms under the chairmanship of Sri. M. Narasimham was appointed in
(a) 1991             (b) 1995
(c) 1998             (d) 1999
ANS :C

18. The Government of India passed the “Recovery of Debts due to Banks and Financial Institutions Act” in
(a) 1993       (b) 1992
(c) 1994       (d) 1990
ANS :A

19. Where the Apellate Tribunal for recovery of debts due to banks and financial  institutions is set up?
(a) Chennai       (b) Bangalore
(c) Mumbai       (d) Kolkata
ANS :C

20. Documentations is
(a) Proper execution of documents       (b) Stamping of document
(c) Cancellation of stamps                    (d) None of the above
ANS :A

21. Collateral securities can be
(a) Tangible                       (b) Intangible in the shape of personal guarantee of a third party
(c) None of the above       (d) Both of the above
ANS :D

22. The Central Bank of India is
(a) The Reserve Bank of India             (b) The State Bank of India
(c) The Andhra Bank                          (d) Global Trust Bank
ANS :A


23. Stock exchange securities do not include
(a) Debentures of companies
(b) Small debentures issued by port trusts
(c) Government promissory notes
(d) Participation certificates
ANS :D

24. Under Section 19(i) a banking company can hold shares in a limited company to the extent of
(a) The paid-up capital and free reserve of that company
(b) The paid-up capital of the bank
(c) 30% of the paid-up capital of the company or 30% of its own paid-up capital and reserves which ever is higher
(d) 30% of the paid-up capital of the company or 30% of its own paid-up capital and reserves which ever is higher
ANS :C

25. The Definition of ‘Banking’ is given in
(a) Negotiable Instrument Act, 1881
(b) RBI Act, 1934
(c) The Banking Regulation Act, 1949
(d) Contract Act
ANS :C