Banking General Awareness Banking in India Question Bank

done Practice Questions - Banking in India Total Questions - 50

• question_answer1)
  A working group on cheque transactions and E-cheques was constituted by the Reserve Bank of India under the chairmanship of Dr R B Barman and major recommendations of group include
  A)
   the physical cheque will be truncated within the presenting bank done clear
  B)
   settlement will be generated on the basis of current MICR code line data done clear
  C)
   electronic images, will be used for payment processing done clear
  D)
   All of these done clear
  E)
   None of these done clear
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• question_answer2)
  Which of the following is a primary function of banks?
  A)
   Collection and payment of cheques, rent, interest etc on behalf of their customers done clear
  B)
   Buying, selling and keeping in safe custody, the securities on behalf of their customers done clear
  C)
   Acting as trustee and executors of the property of their customers on their advice done clear
  D)
   Remitting money from one place to the other through bank drafts or mailor telegraphic transfers done clear
  E)
   Accepting deposits done clear
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• question_answer3)
  Section 131 of Negotiable Instrument Act, 1881 extends protection to the
  A)
   paying banker done clear
  B)
   collecting banker done clear
  C)
   advising banker done clear
  D)
   issuing banker done clear
  E)
   All of these done clear
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• question_answer4)
  Which of the following statements is incorrect about negotiable instruments?
  A)
   Pay A or Order done clear
  B)
   Pay to Order to A done clear
  C)
   Pay A and B done clear
  D)
   Pay A only done clear
  E)
   Pay Bearer done clear
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• question_answer5)
  Which of the following is not a negotiable instrument?
  A)
   Promissory note done clear
  B)
   Bill of exchange done clear
  C)
   Cheque             done clear
  D)
   Bank draft done clear
  E)
   Share certificate done clear
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• question_answer6)
  Which of the following is not the essential requirement for the endorsement as per Negotiable Instrument Act, 1881?
  A)
   It should be on the instrument done clear
  B)
   It should be made by the holder or the maker done clear
  C)
   Signatures should be in ink and not by pencil or rubber stamp done clear
  D)
   It should contain unconditional order done clear
  E)
   The endorser should sign the endorsement in the same style and with the same spellings as written in the instrument done clear
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• question_answer7)
  Under the Negotiable Instrument Act, 1881, an instrument which is incomplete in some respects, is called a/an
  A)
   foreign instrument            done clear
  B)
   inland instrument done clear
  C)
   inchoate instrument        done clear
  D)
   ambiguous instrument              done clear
  E)
   fictitious instrument                    done clear
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• question_answer8)
  All of the following are examples of Quasi negotiable instruments, under the Negotiable Instrument Act, 1881, except  
  A)
   dividend warrants done clear
  B)
   share warrants done clear
  C)
   bearer debentures done clear
  D)
   promissory note done clear
  E)
   None of these done clear
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• question_answer9)
  Transfer of any instrument to another person by signing on its back or face or on a slip of paper attached to it is known as
  A)
   promissory note done clear
  B)
   bill of lading done clear
  C)
   bill of exchange done clear
  D)
   endorsement done clear
  E)
   None of these done clear
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• question_answer10)
  Which of the following statements is correct about promissory note?
  A)
   It need not be in writing done clear
  B)
   An implied promise is enough to constitute a valid promissory note sanKing in inaia done clear
  C)
   The promise to pay must be definite and unconditional done clear
  D)
   The name of the payee need not be mentioned done clear
  E)
   The payment can be in kind done clear
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• question_answer11)
  The banker is under an obligation to take utmost care in keeping secrecy of the details of the customer. However, the obligation of secrecy is not considered essential when
  A)
   a banker is required to give evidence in the court done clear
  B)
   there is national emergency and disclosure is essential in the public interest done clear
  C)
   there are clear proofs of reason to the state and when consent is given by the customer to provide information for the preparation of balance sheet done clear
  D)
   All of the above done clear
  E)
   None of the above done clear
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• question_answer12)
  Regional Rural Bank was promulgated in
  A)
   1975                            done clear
  B)
   1974 done clear
  C)
   1970                            done clear
  D)
   1976 done clear
  E)
   1973 done clear
  View Solution play_arrow

• question_answer13)
  The first regional rural bank was
  A)
   Prathama Grameen Bank done clear
  B)
   Allahabad UP Gramin Bank done clear
  C)
   Arunachal Pradesh Rural Bank done clear
  D)
   Assam Gramin Vikash Bank done clear
  E)
   None of these done clear
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• question_answer14)
  Which of the following is/are correct about Cooperative Banks?
  A)
   They are organised under the provisions of the Cooperative Credit Societies Act. done clear
  B)
   The major beneficiary of the Cooperative Banking is the agricultural sector. done clear
  C)
   The cooperative credit institutions are of agricultural and non-agricultural type. done clear
  D)
   All of these done clear
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• question_answer15)
  The Banking Ombudsman Scheme was introduced under:
  A)
   Banking Regulation Act, 1935 done clear
  B)
   Banking Regulation Act /1949 done clear
  C)
   Banking Regulation Act, 1985 done clear
  D)
   Banking Regulation Act, 1998 done clear
  E)
   None of these done clear
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• question_answer16)
  Banking Ombudsman is appointed for
  A)
   handling and redressal of banks complaints against customers' behaviour done clear
  B)
   handling and redressal of customers' complaints against deficiency in certain banking services done clear
  C)
   providing decision on important banking operations like - CRR, SLR and MSF etc. done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer17)
  Name the body of 'eminent' professionals and officials, which will replace the Appointments Board for appointment of Whole-time Directors as well as non- Executive Chairman of Public Sector Banks.?
  A)
   NITI Aayog done clear
  B)
   NIYATAM done clear
  C)
   Bank Board Bureau done clear
  D)
   Bureau of Banking Standards done clear
  E)
   None of these done clear
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• question_answer18)
  CAMELS Rating is
  A)
   A credit rating by Credit Rating Agencies done clear
  B)
   A credit information report by Credit Information Bureaus done clear
  C)
   A supervisory rating for banks or financial institutions by financial market regulator done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer19)
  Which of the following focuses on the financial needs of the institutional clients and the industry?
  A)
   Universal banking done clear
  B)
   Virtual Banking done clear
  C)
   Internet banking done clear
  D)
   Wholesale banking done clear
  E)
   None of these done clear
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• question_answer20)
  The first Basel Concordat was concerned with
  A)
   The possibility that third world countries might renege on their debts done clear
  B)
   The division of responsibilities among national supervisory authorities done clear
  C)
   The capital adequacy of banks done clear
  D)
   The off-balance-sheet activities of banks done clear
  E)
   None of these done clear
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• question_answer21)
  Which of the following is/are to be followed by Commercial Banks for risk management?
  A)
   Basel II norms   done clear
  B)
   Basel III norms done clear
  C)
   Basel I norms                done clear
  D)
   Solvency II norms done clear
  E)
   None of these done clear
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• question_answer22)
  'Basel Committee on Banking Supervision' is also known as
  A)
   Bank for International Settlements Committee done clear
  B)
   Banking Regulation Committee done clear
  C)
   Financial Stability Board done clear
  D)
   Global Financial System done clear
  E)
   None of these done clear
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• question_answer23)
  Suppose that machinery used by Bank- Twenty for sorting and clearing checks breaks down. This is a manifestation of
  A)
   Credit risk                     done clear
  B)
   Insolvency risk done clear
  C)
   Liquidity risk                 done clear
  D)
   Operational risk done clear
  E)
   None of these done clear
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• question_answer24)
  Co-operative banks
  A)
   cannot create credit. done clear
  B)
   are of 'unit banking' type. done clear
  C)
   cannot mobilize deposits. done clear
  D)
   both [b] and [c] done clear
  E)
   None of these done clear
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• question_answer25)
  Which of the following is/are correct about Banking Codes and Standards Board of India?
  A)
   It was formed on the recommendation by the RBI. done clear
  B)
   It was set up on February 18, 2006. done clear
  C)
   It was registered as a society under the Societies Registration Act, 1860 in February 2006. done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer26)
  The liquidity risk informs about a firm's
  A)
   Ability to satisfy all future obligations done clear
  B)
   Historical growth rates done clear
  C)
   Profitability done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer27)
  What does liquidity mean?
  A)
   It means how cash is converted into gold. done clear
  B)
   It means how cheaply and quickly an asset is converted into cash. done clear
  C)
   It means how cash is converted into SDR (Special Drawing Rights). done clear
  D)
   It means how uncertain the money market conditions are. done clear
  E)
   None of these done clear
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• question_answer28)
  Who will settle the grievances of customers of banks?
  A)
   Reserve Bank of India     done clear
  B)
   State Bank of India done clear
  C)
   Local Courts done clear
  D)
   Ombuds Men done clear
  E)
   Governor of RBI done clear
  F)
   None of these done clear
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• question_answer29)
  Who introduced the Banking Ombudsmen Scheme?
  A)
   ARBI done clear
  B)
   SBI done clear
  C)
   Ministry of Finance done clear
  D)
   NABARD done clear
  E)
   None of these done clear
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• question_answer30)
  When was Ombuds Men Scheme first introduced?
  A)
   November 2006             done clear
  B)
   October 1981 done clear
  C)
   June 1995         done clear
  D)
   January 1998 done clear
  E)
   July 1996 done clear
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• question_answer31)
  One of the major challenges banking industry is facing these days is money laundering. Which of the following acts/ norms are launched by the banks to prevent money laundering in general?
  A)
   Know Your Customer Norms done clear
  B)
   Banking Regulation Act done clear
  C)
   Negotiable Instrument Act done clear
  D)
   Narcotics and Psychotropic Substance Act done clear
  E)
   None of these done clear
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• question_answer32)
  A bank is under a statutory obligations to honour its customer's cheques vide
  A)
   Section 10 of the Banking Regulation Act, 1949 done clear
  B)
   Section 3 of the RBI Act, 1934 done clear
  C)
   Section 31 of the Negotiable Instruments Act, 1881 done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer33)
  Whenever some people wish to enter into the business world, it is a must for them to approach a bank. What services do banks provide them in this regard?

  I. Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them.

  II. Maintaining account books for them for their day-to-day activities, so that they are not required to appoint account/finance personnel on a regular basis.

  III. Lending money by way of overdraft, instalment loan, credit or advance for business activities.

  Select the correct answer using the codes given below:
  A)
   Only I done clear
  B)
   Only II done clear
  C)
   Only III done clear
  D)
   I and III done clear
  E)
   All of these done clear
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• question_answer34)
  Which of the following types of institutions operate in the call money market only as lender?
  A)
   Commercial banks done clear
  B)
   Primary dealers done clear
  C)
   Insurance companies done clear
  D)
   SBI done clear
  E)
   None of these done clear
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• question_answer35)
  The legal relationship between a bank and its customer is a kind of

  I. debtor and creditor.

  II. principal and agent.

  III. pledger and pledgee.

  IV. mortgagor and mortgage.

  Select the correct answer using the codes given below:
  A)
   I and III                        done clear
  B)
   I, III and IV done clear
  C)
   I, II, III and IV   done clear
  D)
   I and II done clear
  E)
   I, II and III done clear
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• question_answer36)
  Many times, we hear about the 'Banking Ombudsman'. What is/are the major roles of same?

  I. Banking Ombudsman is a quasi-judicial authority having powers to summon, the banks and the customers both in case of dispute.

  II. The Banking Ombudsman are appointed by the President of India and are retired judges of the High or Supreme Courts.

  III. The decisions/judgements given by the Banking Ombudsman cannot be taken to any court of justice as their decisions are last in case of bank related problems disputes.

  Select the correct answer using the codes given below
  A)
   Only I                          done clear
  B)
   Only II done clear
  C)
   Only III                        done clear
  D)
   All of these done clear
  E)
   None of these done clear
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• question_answer37)
  Banking  Ombudsman  Scheme  is applicable to the business of
  A)
   all scheduled commercial banks excluding RRBs done clear
  B)
   all scheduled commercial banks including RRBs done clear
  C)
   only public sector banks done clear
  D)
   all banking companies done clear
  E)
   all scheduled banks except private banks done clear
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• question_answer38)
  Money laundering normally involved
  A)
   placement of funds done clear
  B)
   layering of funds done clear
  C)
   integrating of fund done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer39)
  Banker-Customer relationship is often considered a fiduciary one. What is this relation based on?
  A)
   Contract                       done clear
  B)
   Faith done clear
  C)
   Commercial                  done clear
  D)
   Agent and principal done clear
  E)
   None of these done clear
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• question_answer40)
  A banker is expected to honour the cheques within the specified banking hours as per section of Negotiable Instrument Act, 1881.
  A)
   22                                done clear
  B)
   25 done clear
  C)
   30                                done clear
  D)
   45 done clear
  E)
   65 done clear
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• question_answer41)
  Which of the following is not a part of the scheduled banking structure in India?
  A)
   State co-operative banks done clear
  B)
   Public sector banks done clear
  C)
   Private sector banks done clear
  D)
   Regional rural banks done clear
  E)
   Moneylenders done clear
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• question_answer42)
  Which of the following statements is correct about soiled/mutilated note?
  A)
   All banks are authorised to accept soiled notes across their counters and pay the exchange value done clear
  B)
   Banks are expected to offer this service even to non-customers done clear
  C)
   All public sector bank branches and currency chest branches of private sector banks are authorised to adjudicate and pay value in respect of mutilated notes done clear
  D)
   The RBI has also authorised all commercial bank branches to treat certain notes in 'two pieces' as soiled notes and pay exchange value done clear
  E)
   All of the above done clear
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• question_answer43)
  Your bank's customer XYZ enjoys a CC limit of Rs. 100000. The CC account shows a credit balance of 10205. The relationship between your bank and XYZ limited is
  A)
   debtor/creditor done clear
  B)
   creditor/debtor done clear
  C)
   bailor/bailee done clear
  D)
   bailee/bailor done clear
  E)
   None of these done clear
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• question_answer44)
  In case, a depositor wishes to withdraw his fixed deposits prematurely, banks
  A)
   do not allow the same till maturity of the deposits done clear
  B)
   charge a penalty for the same done clear
  C)
   do not charge any penalty and allow the same done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer45)
  Which of the following is/are the rights of customer towards his banker?
  A)
   To receive a statement of his account from a banker done clear
  B)
   To sue the bank for any lose and damages done clear
  C)
   To sue the banker for not maintaining the secrecy of his account done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer46)
  Which one is true in respect of bank marketing?
  A)
   Bank marketing deal with providing services to satisfy customer's financial needs and wants. done clear
  B)
   Bank marketing has to discover/ ascertain/anticipate the financial needs of the corporates. done clear
  C)
   Bank marketing may be required to satisfy the corporates and institutions, other related needs and wants. done clear
  D)
   Bank marketing means competitive element, efficiency and effectiveness in the process. done clear
  E)
   None of these done clear
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• question_answer47)
  SWIFT is a network for banks to exchange information. What is the expanded form?
  A)
   Safe window for international transactions done clear
  B)
   Secured worldwide international transactions done clear
  C)
   Society for worldwide interbank financial telecommunications done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer48)
  Which of the following is the drawee bank in respect of a cheque?
  A)
   The payee's bank done clear
  B)
   The bank which collects the cheque done clear
  C)
   The bank on which the cheque is drawn done clear
  D)
   The endorsee's bank done clear
  E)
   None of these done clear
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• question_answer49)
  Who is a banking ombudsman?
  A)
   The chief vigilance officer of a bank done clear
  B)
   The chairman of a bank done clear
  C)
   An official in the Finance Ministry, Government of India done clear
  D)
   An independent authority appointed by RBI to address customer complaints done clear
  E)
   None of these done clear
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• question_answer50)
  The co-operative credit societies have a
  A)
   two-tier structure done clear
  B)
   three-tier structure done clear
  C)
   four-tier structure done clear
  D)
   five-tier structure done clear
  E)
   None of these done clear
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