Banking General Awareness Banking System Question Bank

done Practice Questions - Challenges in Banking System Total Questions - 36

• question_answer1)
  Which of the following acts is specially launched to facilitate banks in recovery of bad loans?
  A)
   RBI Act done clear
  B)
   Banking Regulation Act done clear
  C)
   Companies Act done clear
  D)
   Income Tax Act done clear
  E)
   SARFAESI Act done clear
  View Solution play_arrow

• question_answer2)
  Non-performing assets are cause for serious concerns for banks. Why are these loans known as non-performing?
  A)
   Recovery of bank's funds are difficult done clear
  B)
   Interest on these accounts are not charged done clear
  C)
   Banks have to make provision for these loans in their balance sheet done clear
  D)
   All of the above done clear
  E)
   None of the above done clear
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• question_answer3)
  The objectives of forming SHG is/are

  I. to build mutual trust and confidence between the bankers and the rural poor people.

  II. to encourage banking activities, both on the thrift as well as credit sides, in a segment of the population that the formal financial institutions usually find difficult to cover.

  III. to meet the needs of the poor by combining the flexibility, sensitivity and responsiveness of the Informal Credit System with the strength of technical and administrative capabilities and financial resources of the formal credit institutions.

  Select the correct answer using the codes given below:
  A)
   Only I                          done clear
  B)
   I and II done clear
  C)
   I and III                        done clear
  D)
   II and III done clear
  E)
   All of the above done clear
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• question_answer4)
  Which among the following is related to bank risks?
  A)
   Deposits                        done clear
  B)
   Bank funds done clear
  C)
   NPA                             done clear
  D)
   All of these done clear
  E)
   None of these done clear
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• question_answer5)
  Which of the following acts was framed specially to deal more effectively with the problem of non-performing assets in banking system?
  A)
   Companies Act done clear
  B)
   Banking Regulation Act done clear
  C)
   Foreign Exchange Management act done clear
  D)
   Industrial Dispute Act done clear
  E)
   SARFASESI Act done clear
  View Solution play_arrow

• question_answer6)
  Where is the headquarter of SIDBI?
  A)
   Varanasi                       done clear
  B)
   Lucknow done clear
  C)
   New Delhi                     done clear
  D)
   Kolkata done clear
  E)
   Mumbai done clear
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• question_answer7)
  Banking and financial services all over the world are regulated usually by the Monetary Authority of the land. Who controls this function in India?
  A)
   Ministry of Finance         done clear
  B)
   SEBI done clear
  C)
   RBI                              done clear
  D)
   IRDA done clear
  E)
   FEDAI done clear
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• question_answer8)
  Which bank in India has introduced vertical credit cards?
  A)
   Kotak Bank                   done clear
  B)
   Yes Bank done clear
  C)
   HDFC Bank                  done clear
  D)
   ICICI Bank done clear
  E)
   SBI done clear
  View Solution play_arrow

• question_answer9)
  BEF is the statement which banks submit to RBI relating to:
  A)
   Transactions in US Dollars done clear
  B)
   Importers who have not submitted documentary evidence for import within stipulated time period done clear
  C)
   Overdue export bills done clear
  D)
   Non-performing assets done clear
  E)
   Excess overnight limit position of the bank done clear
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• question_answer10)
  Which of the following is true about RBI's decision regarding sick micro and small enterprises?
  A)
   These guide lines made on recommendations of the working group chaired by Deputy Governor K. C. Chakrabarty done clear
  B)
   RBI has suggested that an MSE is considered 'sick' when: any of the borrowed amount of the enterprise remains a non-performing asset (NPA) for three months or more done clear
  C)
   RBI also suggested if there is erosion in the net worth due to accumulated losses to the extent of 50 percent of its net worth during the previous accounting year done clear
  D)
   The stipulation that the unit should have been in commercial production for at least two years has been removed. done clear
  E)
   All of the above done clear
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• question_answer11)
  Which among the following is called as non-performing assets?
  A)
   Assets that can exchange income done clear
  B)
   Assets that cease to earn interest income done clear
  C)
   assets that have not been commented upon by the auditors done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer12)
  Which of the following does not pertain to non-performance assets?
  A)
   Sub-standard assets                    done clear
  B)
   doubtful assets done clear
  C)
   loss assets done clear
  D)
   standard assets done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer13)
  Which among the following defines a non-performing asset?
  A)
   In a loan account, the principal due has not been paid for more than ninety days done clear
  B)
   In a loan account, the interest due has not been paid for more than ninety days done clear
  C)
   Both [a] and [b] as mentioned above done clear
  D)
   Assets that have not been commented upon by the bank auditors done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer14)
  Which among the following committees had recommended Income Recognition and assets classification norms?
  A)
   Rangarajan committee done clear
  B)
   Goiporia committee done clear
  C)
   Narasimhan committee done clear
  D)
   Jankiraman committee done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer15)
  What is the percentage of gross non- performing assets (gross NPA) for public- sector banks as of December 2016?
  A)
   3% done clear
  B)
   11% done clear
  C)
   8% done clear
  D)
   9.3% done clear
  E)
   7% done clear
  View Solution play_arrow

• question_answer16)
  Which of the following is not a category of nonperforming assets?
  A)
   Substandard Assets done clear
  B)
   Doubtful Assets done clear
  C)
   Loss Assets done clear
  D)
   Tangible Assets done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer17)
  As per guidelines issued by the Reserve Bank of India, Banks may classify a loan as Non-Performing Asset (NPA), only if the interest due and the principal during any quarter is not serviced fully within
  A)
   90 days from the end of the quarter done clear
  B)
   60 days from the end of the quarter done clear
  C)
   30 days from the end of the quarter done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer18)
  Assets which have remained NPA for a period of less than or equal to 12 months are called
  A)
   substandard assets done clear
  B)
   doubtful assets done clear
  C)
   loss assets done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer19)
  Which of the following statements is/are correct about Presidential ordinance on NPA?

  I. It empowered the Reserve Bank of India to enforce expeditious resolution of non-performing assets of banks.

  II. The provisions of the Bankruptcy Code have been linked to the Banking Regulation Act.

  A)
   I only done clear
  B)
   II only done clear
  C)
   Both I and II done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer20)
  Which of the following conditions result(s) in stressed assets?
  A)
   Bounced cheques done clear
  B)
   Stock shortages done clear
  C)
   Request for frequent overdrawal done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer21)
  Which of the following empowered RBI to set up oversight committees for banks with NPAs?
  A)
   Presidential ordinance done clear
  B)
   Reserve Bank of India Act, 1934 done clear
  C)
   Banking Regulation Act, 1949 done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer22)
  The assets which get an extended repayment period at reduced interest rate are called
  A)
   stressed assets done clear
  B)
   restructured assets done clear
  C)
   substandard assets done clear
  D)
   tangible assets done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer23)
  The convention of conservatism is applicable in
  A)
   providing for discount on creditors done clear
  B)
   making provision for bad doubtful debts done clear
  C)
   providing depreciation done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer24)
  Restructured loan is also called as
  A)
   strong loan                    done clear
  B)
   weak plan done clear
  C)
   bad loan                       done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer25)
  Loss on sale of plant and machinery should be written off against
  A)
   share premium done clear
  B)
   depreciation fund account done clear
  C)
   sale account done clear
  D)
   profit and loss account done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer26)
  Which of the following would not be found on a standardized balance sheet?
  A)
   Tangible Assets done clear
  B)
   Amounts written off Investments done clear
  C)
   Debtors done clear
  D)
   Share Premium Account done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer27)
  Which of the following creates the need for higher level of capital adequacy of banks?
  A)
   Basel III Capital norms done clear
  B)
   Credit demand done clear
  C)
   Deterioration in asset quality done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer28)
  Capital Adequacy Ratio (CAR) is defined as
  A)
   the ratio of a bank's capital in relation to its risk weighted assets and current liabilities done clear
  B)
   the ratio of a bank's assets and current liabilities done clear
  C)
   the ratio of a bank's bad debt and current liabilities done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer29)
  Which of the following constitutes Tier-I Capital?
  A)
   Paid-Up Capital done clear
  B)
   Statutory Reserves done clear
  C)
   Capital Reserves done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer30)
  Which of the following statements is/are correct?

  I. Union government has the power to direct the RBI to take necessary steps to initiate the NPA resolution.

  II. Only the President can direct the RBI to take necessary steps to initiate the NPA resolution.

  A)
   I only done clear
  B)
   II only done clear
  C)
   Both I and II done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer31)
  Subordinated Debt forms the part of
  A)
   tier-II Capital done clear
  B)
   tier-I Capital done clear
  C)
   both [a] and [b] done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer32)
  Which of the following statements is/are correct?

  I. Indian scheduled commercial banks are required to maintain a CAR of 9%.

  II. Indian public sector banks need to maintain a CAR of 12%.

  A)
   I only                           done clear
  B)
   II only done clear
  C)
   Both [a] and [b]             done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer33)
  Which of the following is/are not reflected in Balance Sheet?
  A)
   Liabilities                      done clear
  B)
   Equity capital done clear
  C)
   Total debt                     done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer34)
  Which of the following include(s) risk weighted assets?
  A)
   Credit risk                     done clear
  B)
   Market risk done clear
  C)
   Operational risk done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer35)
  Which of the following committees recommended the formation of Debt Recovery Tribunals?
  A)
   Narasimham Committee done clear
  B)
   A C Shah Committee done clear
  C)
   Abid Hussain Committee done clear
  D)
   Adhyarjina Committee done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer36)
  Which of the following statements is/are correct about Strategic Debt Restructuring (SDR)?

  I. Under SDR, banks which have given loans to a corporate borrower have the right to convert the full or part of their loans into equity shares.

  II. The existing promoters are discontinued to hold majority stake in distressed companies.

  A)
   I only done clear
  B)
   II only done clear
  C)
   Both [a] and [b] done clear
  D)
   None of these done clear
  View Solution play_arrow