1. Principal functions of banks is/are:
(a) accepting deposits
(b) lending and investing
(c) non-fund business and remittance services
(d) all of the above
2. Scheduled Bank is a bank………………
(a) included in the second schedule to the Reserve Bank of India Act
(b) in the public sector
(c) in the commercial banking sector space
(d) Development Bank
3. Which is true with regard to the operations of Payments Banks in India?
(a) Payments Banks can accept deposits of any type without any ceiling.
(b) Payments Banks can also mobilize Term Deposits.
(c) Payments Banks can accept only demand deposits without any ceiling.
(d) Payments Banks can accept demand deposits and such deposits cannot exceed Rs. 2 lakh per customer.
4. Small Finance Banks are required to give finance
(a) maximum up to Rs. 25 lakhs.
(b) 50% of its total advances portfolio should be at least up to Rs. 25 lakhs per borrower.
(C) to any borrower without any ceiling.
(d) only to priority sectors as defined by RBL.
5. Regional Rural Banks can open its branches
(a) anywhere in the state wherein it has its Head Quarters,
(b) anywhere in the state but non-customer related offices can be opened anywhere in the country.
(C) anywhere in the country.
(d) only in the districts notified by the GOI
6. Saving accounts contain some restrictions regarding….
(a) Number of withdrawals per quarter
(B) Amount withdrawn per transaction in ATM
(c) Number of deposits into the account per quarter
(d) Both (a) (b)
7. Interest on savings bank can be paid…………
(a) On any interval as per bank’s own approved policy
(b) On half yearly intervals only
(c) On yearly intervals only
(d) On quarterly or lesser intervals
8. Demand Deposits are those which can be withdrawn………….
(a) On Request
(b) On Sanction by Manager
(c) On Demand
(d) On Persuasion
9. Current account deposits are not entitled to
(a) Cheque book above 100 leaves
(b) Monthly Statements
(c) Cash Payments
(d) Interest
10. In saving account deposits, interest is calculated on……………… balance in the account.
a) Maximum
(b) Average
(c) Daily
(d) Last Balance at the end of month
11. Money Laundering refers to ………………………….
(a) Conversion of assets into cash
(b) Conversion of Money which is illegally obtained through legal channels.
(c) Conversion of cash into gold.
(d) Conversion of legal money for utilization for illegal purpose.
12. One of the important steps in Money Laundering is……………..
(a) Placement & Layering
(b) Organization & Controlling
(c) Depositing & Withdrawing
(d) Backward & Forward integration
13. Which one of the following is an Officially valid document available to the bank for customer identification?
(a) Election ID card
(b) Ration card
(c) Photograph
(d) Bank statement of account
14. What is the objective of KYC norms?
(a) To ensure appropriate customer identification
(b) To monitor transactions of suspicious nature
(c) If loan given, it would not be a NPA
(d) To create a data base of customers
15. Identify the true statement from among the following options:
(a) The customer has a right to close his deposit account because of change of residence or dissatisfaction with the service of the bank.
(b) Banks normally do not choose to stop operations in the joint deposit account even upon receipt of notice of death of one of the customers, to avoid any inconvenience to the surviving customer.
(c) Closure of account can be done only on voluntary basis and the banks generally do not close the accounts of customers on their own, even if the customer is convicted and the operations in the accounts are found to be undesirable.
(d) Banks have the prerogative to close the inoperative accounts of customers without giving any notice to them.
16. …………………is responsible for resolution of grievances at the branch level.
(a) BC Agent
(b) Designated Counter Clerk
(C) Sub-staff
(d) Branch Manager
17. Parties can resolve their differences peacefully through the…………………
(a) Banking Ombudsman
(b) Grievance Redressal procedure
(c) Consume Courts
(d) Civil Courts
18. Customers Day is observed on……………….
(a) 5th of every month
(b) 10th of every month
(c) 15th of every month
(d 20th of every month
19. Officials who are responsible for ensuring that the products and services produced by their institutions meet certain standards of quality are called………….
(a) Nodal Officers
(b) Specialist Officers
(c) Service Managers
(d) Quality Assurance Officers
20. If not satisfied by the decision/award, either bank or customer can appeal to the Appellate Authority viz., Executive Director in-Charge of the Department of the Reserve Bank administering the Scheme, within days from the date of receipt of the Award given by the Ombudsman.
(a) 45
(b) 30
(c) 15
(d) 10
21. Study the following statements and identify the one which may not be a factor responsible for the banks not extending credit and services in rural areas adequately.
(a) High transaction cost involved in extending credit to the rural poor;
(b) Poor credit discipline in the rural areas, making it difficult for banks to monitor credit in rural areas,
(c) Poor deposit-base of the banks has been responsible for the reluctance of banks in extending credit through their rural branches;
(d) No willing takers among the bank employees for the rural postings, making if difficult for the banks to enlarge rural credit to any significant extent.
22. Identify the aspect not considered relevant for recognizing Regional Rural Bank as best suited vehicle for financial inclusion.
(a) Because of their regional character;
(b) Because of their operations in a homogenous area,
(c) Their employees being local, are best suited to relate with the rural customers/ local population;
(d) They are managed by people from their parent banks.
23. Which undernoted initiative of Reserve Bank of India is not related to the Financial Inclusion Program?
(a) Introduction of basic no-frills’ savings accounts making them accessible to vast sections of the rural poor.
(b) Issuance of simplified General Purpose Credit Card (GCC) without insistence on collateral or purpose.
(c) Financing of SMEs on concessional terms.
(d) Relaxation of KYC norms for opening new relationship accounts in rural areas.
24. Which intermediary listed below is not engaged by the banks for reaching out to the rural poor?
(a) Self-Help Groups
(b) Non-Government Organizations
(c) Debt Recovery Agents
(d) Microfinance Institutions
25. Which one of the following does not form part of the digital financial service under the financial inclusion program?
(a) BC/BF model
(b) ATM
(c) PoS Terminal
(d) Biometric devices
26. Which activity noted hereunder is outside the purview of the Business Facilitator?
(a) Creating awareness among people in the villages about savings and loan products
(b) Educating people and advising them on managing money
(c) Recovery of small loans in the crop loan segment
(d) Debt Counselling
27. The scope of the activities to be undertaken by the Business Correspondents will not include
(a) Disbursal of small value credit
(b) Recovery of principal and collection of interest from the borrower
(c) Collection of small value deposit
(d) Payment of Demand Drafts not exceeding Rs.1,000
28. Banks cannot use the services of which one of the following as intermediaries under BF/BC Model?
(a) NGOs
(b) SHGs
(c) Village Sarpanch
(d) MFIs
29. Engaging Business Correspondents and doing banking business in villages away from the banks location shall expose the banks to
(a) Credit risk
(b) Interest rate risk
C Reputation risk
d Liquidity risk
30. BCA provides banking service to the targeted people. Due to poor Service of BCA, the banks name and image among the customers 1s tarnished. this is a risk for the bank.
(a) Contractual
(b) Concentration
(c) Reputation
(d) Compliance
31. Which one of the following statements is true based on your understanding of the Do’s and Don’ ts for adherence to the BCAS?
(a) Adherence to confidentiality with regard to the Customer information 1S essential for the BCAs
(b) At times, the BCAs are required to wallow in the prevailing local politics, for scouting business for the bank.
(C) BCA are selectively permitted to adopt discriminatory practices, If Such practices are warranted for enlarging the scope of business for the bank.
(d) BAS should as far as possible, avoid transactions with the financial excluded people.
32. What is the monthly instalment (as his contribution) to be paid by a person if he joins APY at the age of 18 years and he wants to get a minimum monthly pension of Rs. 5,000 per month at the age of 60 years?
(a) Rs. 291
(b) Rs. 240
(c) Rs. 210
(d) Rs. 126
33. Banks have assigned……………for opening of Basic Savings Bank Deposit Accounts under financial inclusion through Business Correspondents.
(a) Scheme Codes
(b) Personal Identification Number
(c) Aadhaar Number
(d PRAN
34. EBT stands for………………………
(a) Economic Benefit Transfer
(b) Extra Benefit Transfer
(c) Electronic Benefit Transfer
(d) Electronic Board for Transaction
35. PoS Machine is a small device installed at almost all Business Centres to facilitate cashless purchases to their customers. PoS stands for……………….
(a) Payment on Sale
(b) Point of Sale
(c) Point of Settlement
(d) Purchase & Sales
36. ATM is one of the banking channels. Here, the abbreviation ATM refers to………………..
(a) Any Time Money
(b) Automated Teller Machine
(c) Automated Transaction Money
(d) All Time Money
37. What is true with the Near Field Communication (NF) Mobile?
(a) NFC mobile uses the technology which allows users to exchange digital content and connect electronic devices with a touch.
(b) NFC transmission are long range and powerful inasmuch as the NFC mobiles need not be in close proximity with the devices.
(c) NFC range is unlimited and hence the NFC mobiles can be operated from a branch of a bank located a few distance away from the locations of BCs.
(d) (b) and (c)
38. From among the following which is a described as a standardized international system for digital mobile communication?
(a) Global System for Mobile
(b) General Packet Radio Service system
(c) Code Division Multiple Access System
(d) Radio Frequency identification System
39. What do you mean by encryption?
(a) Method by which codes are converted into data or information
(b) Method by which data or information are converted into code
(C) Method by which code are converted into voice mode
(d) A system of printing using little round marks that are higher than the level of paper they are on and which blind people can read by touching them
40. In Kiosk Banking, the transactions are done through……………..
(a) Mobiles
(b) Internet enabled Pe-based technology
(c) Credit Cards
(d) Prepaid cards
41. Identify the service/s which is/are provided by Kiosk Banking?
(a) Deposit of cash
(b) Withdrawal of cash
(c) Money transfer
(d) All the above services
42. Which amongst the below mentioned forms of banking come under digital banking?
(a) Branch Banking
(b) Mobile banking
(c) Cheque deposit
(d) Passbook printing machine
43. Cards that store data in integrated circuits are also called….
(a) Smart Cards
(b) Mega Strip cards
(c) Both of the above
(d) None of the above
44. Which of the below facilities can be availed at an ATM machine?
(a) Cash Withdrawal
(b) Update PIN number
(c) Balance enquiry
(d) All of the above
45. ATMs established by non-banking entities are called…………..
(a) Green label ATMs
(b) White label ATMs
(c) Blue label ATMS
(d) Brown label ATMs
46. Balance inquiry is a kind of ….
(a) Financial transaction
(b) Non-financial transaction
(c) Technical transaction
(d) None of the above
47. Identify the ethical behavior from among the following items?
(a) Breach of data privacy
(b) Nepotism
(C) Withholding information
(d) Consistent value system
48. Borrower profiling done while providing credit counselling, is……………..
(a) an experiment- based method
(b) data- based method
(c) research- based method
(d) a survey- based method
49. What is cross selling in the context of banking business?
(a) Practice of marketing additional products to existing customers
(b) Practice of marketing products of one bank to customers of another bank
(c) Widening customer base
(d) Focus on canvassing for low interest-bearing deposits and 1 scouting high value advances to improve profitability for the bank
50. Study the following statements and identify the statement which carries a flaw insofar as it relates to the Depositor Education and Awareness Fund
(a) Fund is created in RBI
(b) Reserve Bank of India Act has been amended to empower RBI to create the Fund
(c) Funds lying in account which are inoperative tor a period of at least 10 years are transferred to the Fund
(d) RBI is empowered with regard to utilization of Fund
51. Identify the incorrect observation insofar as it relates to the counselling?
(a) The purpose of advising clients in financial counselling is to convince them to do what counsellors think they should do
(b) Resistance behaviors are always indicators that the client is having trouble relating to the counsellors
(C) Advices offered in financial counselling should be tentative, with the client making the final decision
(d) Asking the client questions is usually appropriate only when it is an honest attempt to gather information what the counsellor needs and the client can provide.
52. Communication kill is a…………………
(a) Academic skill
(b) Hard skill
(c) Soft skill
(d) None of the above
53. Study the following characteristics and identify the one which is not a suggested attribute for building relationship with the customer.
(a) intemperance
(b) listening
(c) positivity
(d) empathy
54. From among the gesture listed below, identify the one which is not an attribute desired to please the irate customer.
(a) nodding head
(b) making eye contact
(c) smiling in a sarcastic manner
(d) keeping an open stance
55. The quality of being able to understand and share the feelings of another person is known as ….
(a) positivity
(b) empathy
(c) sympathy
(d) retribution
56. Name the Act which provides guidelines to banking institutions about legal proceedings, relating to banking records
(a) Negotiable Instruments Act, 1881
(b) Banker’s Book Evidence Act, 181
(c) Indian Evidence Act, 1872
(d) Banking Regulation Act 1949