Promotion Book 2011

STATE BANK LEARNING CENTER, PANCHKULA

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PREPARED BY SBLC PANCHKULA (UPDATED UPTO 1ST June 2011)


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(For Internal Circulation only)

Promotion Booklet

(Updated upto 01-06-2011)

STATE BANK LEARNING CENTRE Sector-14, PANCHKULA

PHONE: 0172-4569401

“While we have taken utmost care in incorporating latest information on various topics, errors and omissions are likely. Hence the readers are requested to be guided by the circulars issued by the Bank from time to time and SBLC, Panchkula is not liable for any such inadvertent mistakes and omissions, if any. We also request our readers to kindly bring to our notice, any mistakes/omissions noticed by them to make suitable corrections in the subsequent edition.”


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PROMOTION BOOKLET

INDEX

Chapter

no.

Name of the Chapters Page

Number

1 Policy Guidelines 1-5

2 Annual Results 6-8

3 General Banking 9-29

4 Inspection& Audit, 30-37

5 Basel-II, Capital Adequacy & Risk management 38-49

6 P-Segment Liability Products 50-68

7 P-Segment Assets Products 69-126

8 SME Liability Products 127-138

9 Micro Advances, PMEGP, SGSY, 139-142

10 SME Advances 143-201

11 NPA Management 202-208

12 Legal Aspects of Banking 209-245

13 International Banking 246-316

14 Agriculture Advances 317-386

15 Cash Deptt. Procedures & Govt. Business 387-411

16 CBS , Technology Products 412-463

17 Information Security System 464-475

18 BPR 476-480

19 Cross Selling 481-494

20 Awareness of Banking Finance & Economy 495-531


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Policy Guidelines 2011-12

1. As per Policy Guidelines Net Profit of S B I has been targeted to increase by _______%, during the year 2011-12

a) 18 b) 20

c) 25 d) 30 2. As per Policy Guidelines 2011-12, Corporate Centre has fixed the target for

growth in deposits for at:______ a) 23% b) 32% c) 18.5% d) 15.5% 3. Target for growth of advances (excluding food) for whole bank, as per

Policy Guidelines has been fixed at:_________

a) 20% b) 22% c) 23% d) 28% 4. As per Policy Guidelines 2011-12, the return on equity has been targeted

at….. % a) 18.50 b) 19.50 c) 15.20 d) 16.20 5 As per Policy Guidelines 2011-12., increase in CASA ratio for the whole bank

is to go up by ……, …… basis points.

a) 120 b)150 c) 140 d)200 6. ALL SME customers with limit of Rs-----cr and above are to be provided with

CINB in 2011-12.

a) 1.00 b) 3.00 c) 2.5 d) 1.5 7. As per Policy Guidelines 2011-12 the Bank has to focus on increasing other

income by ______%.

a) 28 b) 26 c) 30 d) 40


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8. As per Policy Guidelines 2011-12, target for growth in Housing and auto loans in NBG has been fixed at …….% & ……%.

a) 20, 30 b) 27, 22

c) 25, 32 d) 26, 35 9. As per Policy Guidelines 2011-12 Gross NPA ratio for the whole Bank

should be ------ %

a) 3.50 b) 2.27 c) 1.15 d) 3.25 10. As per Policy Guidelines 2011-12, the return on assets has to increase by

….%

a) 2 b) 1.08 c) 1.90 d) 1.03 11. As per Policy Guidelines 2011-12, the overheads growth is to be restricted

to------

a) 3 b) 5 c) 7 d) 0 (SAME LEVEL) 12. Under Green Channel counter bank seeks to achieve ------transactions by 2012

a) 1.00lac b) 0.50lac

c) 1.50lac d) 0.75lac` 13. As per Policy Guidelines 2011-12, the Forex retail purchases and retail

sales must grow by ------ % & …….% .

a) 20 & 25 b) 25 ,25 c) 30 & 30 d) 50 & 50 14. As per Policy Guidelines 2011-12, ------- % growth has been set for education

loan

a) 25 b) 30 c) 45 d) 40

15. As per Policy Guidelines 2011-12, -------- number of new mobile banking users

are to be added .

a) 20lac b) 10lac c) 25 lac d) 30lac


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16. As per Policy Guidelines 2011-12, ------ lac new Retail users of INB are to be

added . a) 24 b) 50

c) 30 d) 25 17. Income from cross selling Buisness is targeted to increase by …..% in 2011-12

a) 120 b) 300

c) 200 d) 150 18. As per Policy Guidelines 2011-12 the NRI deposits have been budgeted to

increase by …%. Under the overall growth target for deposits.

a) 10 b) 20 c) 25 d) 15 19. As per Policy Guidelines 2011-12, net interest margin for the bank should be ------------

a) 3.5 b) 3.40 c) 4.2 d) 2.85 20. As per Policy Guidelines 2011-12 in the growth in agriculture advances is set

at ---------% a) 20 b) 30

c) 40 d) 25

Key to Policy Guidelines 2011-12

1 2 3 4 5 C A C D C 6 7 8 9 10 A B D B D 11 12 13 14 15 B A B A A

16 17 18 19 20 A B A B D


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Policy Guidelines 2011 - 12

1. As per Policy Guidelines 2011-12. Target of cash recoveries in NPA’s and also upgradation of NPAs has been budgeted at ……crores,&…..crores. a) 3000,5560 b) 4000,4500

c) 5000 ,6750 d) 4200, 3200 2. As per Policy Guidelines 2011-12, out of total advances to micro and small

enterprises ----- % should go to micro enterprises. a) 40 b) 55

c) 60 d) 45 3. As per Policy Guidelines 2011-12 , --------- no of Finanacial plans including

General plans have been budgeted to be prepared.

a) 1,20,000 b) 1,00,000 c) 1,50,000 d) 2,00,000 4. As per Policy Guidelines 2011-12 , the market share of Deposits and Advances

is to increase by more than ….. & ….basis points .

a) 60, 45 b) 65, 50 c) 45, 40 d) 70, 65 5. As per Policy Guidelines 2011-2012, %age of transactions through alternate

channels should be------%. a) 40 b) 50

c) 60 d) 45 6. As per Policy Guidelines 2011-2012, our capital adequacy should be above----

------%

a) 12 b) 15 c) 14 d) 13 7. As per Policy Guidelines 2011-2012, the average Daily Average Hits at ATMs

have to Increase from

a) 365 to 370 b) 370 to 390 c) 340 to 350 d) 400 to 410 8. As per Policy Guidelines 2011-2012, all accounts under --------are to be RINB

enabled a) SME b) CSP

c) Saving Plus d) Current a/c


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9. As per Policy Guidelines 2011-2012 the target for increase in Govt .

Commission is Budgeted to increase by about ……% a) 35 b) 40 c) 33 d) 20

10. The target for Credit Linking of SHGs for the year ending 31-03-2012 has been

fixed at …… Lacs

a) 4 b) 3 c) 3.5 d) 2 11. As per Policy Guidelines 2011-2012 the target for opening of No Frill a/cs has

been fixed at --------lacs

a) 15 b) 30 c) 10 d) 25 12. Per deposits and advances growth target set for SCE branches for the year

2011 -12 is ----- % & ------- % a) 40, 40 b)35 , 35 c) 60, 40 d)50, 30 13. Net NPA %age for the year 2011-12 should be --------

a) 1.00 b) 2.05 c) 2 d) 1.50

Key to Policy Guidelines 2011 - 12

1 2 3 4 5 C C A C B 6 7 8 9 10 D A B D A 11 12 13 D B A


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ANNUAL RESULTS 2010-2011

1. The % of share held by government of India in SBI” s equity is -----

(a)59.63 (a)59.60 (c)59.40 (d)49.40

2. The total deposits of the bank as on 310311 have crossed ----- Cr.

(a) 833000 (b)923000 (c)933000 (d)943000

3. The total advances of the bank as on 310311have crossed….cr.

(a)350,000 (b)771000 (c)781000 (d)791000

4. Operatig profits of the bank have grown upto Rs. ……… cr. For the year ending 2011.

(a)5000 (b)25335 (c)38351 (d)28351

5. The bank has declared a dividend of per share of Rs…….for the year ending 2011 .

a)30 (b) 25 (c) 28 (d) 29

6. Interest income on loans has grown by…………% over FY 2010 .

a) 22.12 b) 20.26 c) 18.45 d) 23

7 The Bank has recorded a NIM of (Net Interest Margin ) ………% for the year

ending 2011 .

a) 3.09 b) 3.32 c) 2.83 d) 2.73

8. Market share in deposits for the year ending 31.03.2011 is …..%

a) 17.03, b)15.40 c) 17.40 d) 16.40

9. How many domestic branches of SBI are there as on 31.03.11

a) 12596 b) 135332 c) 13542 d) 12156


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10. The CASA ratio has improved from 46.67% as on March 2010 to -------- as on Mar.2011 .

a) 48.66 b) 47.94 c)45.32 d) 46.01

11. The net profit of State Bank of India for the year ended 31st March 2011 was:____

a) Rs. 8361.52 crore b) Rs.9381 crore c) Rs. 8264.52crore d) Rs.9564.45 crore

12. The paid up capital of State Bank of India as on 31st March 2011 was:

a) Rs.562.29 crore b) Rs.1000 crore c) Rs.500 crore d) Rs.635 crore

13. The authorised share capital of State Bank of India as at the end of 31st Mar2011 was:

a) Rs.100 crore b) Rs.200 crore c) Rs.500 crore d) Rs.1000 crore

14. The “paid up capital and reserves” of State Bank of India as at the end of 31st March 2011 was in the range of:

a)Rs.50000 – Rs. 60000 crore b) Rs.68000 – Rs.70000 crore c)Rs.45000 – Rs. 48000 crore d) Rs.64000 – Rs.65000 crore

15. The number of State Bank Group ATM”S as on 31st March.2011 are:

a) 25006 b) 25005 c) 25003 d) 24500 16. Profit for the fourth Quarter ending 2011 was -------- Rs. a)28.08 b) 24.01 c) 20.88 d) 20.46

17. Earning per share (EPS) of State Bank of India for the year 2010-2011 was: a) Rs.132.15 b) Rs.140.15

c) Rs166.31 d) Rs. 130.16 18. The Buisness growth for the year ending 31.03.2011 is Rs.……….Crores a)250142 b) 190145 c )260139 d) 240139


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19. The credit deposit ratio for the year ending 2010-2011 is..…….%

a)75.74 b)76.32 c)7 6.03 d) 74.94

20. Gross and Net NPA,s as at the end of 31.03.2011 are …….,……..%

a)3.28, 1.63 b) 2.98, 1.78 c) 2.48 ,1.90 d) 3.05, 2.09 21. Bank’s Capital Adequacy Ratio as per Basel 11 is …….% for the year ending

31032011 . a)11.78 b)11.98 c)10.69 d) 11.79 22. The Bank has reached a provision coverage ratio of …………% for the year

ending 2011 a)64.95 b) 60.63 c)71.63 d) 59.37 23. Our Bank’s Cost of Deposits has decreased to ……% as on 31.03.2011 a)5.26 b)5.39 c)6.60 d)6.90 24. The return on equity for the year ending March 2011 is-------. a)12.84 b) 11.90 c)15.23 d)12.01 25. The return on average assets for the year ending 2011 is -------- %

a)0.71 b)0.65 c)0.63 d)0.68

KEY TO ANNUAL RESULTS 2010-2011

1 2 3 4 5 C C B B A 6 7 8 9 10 C B D C A 11 12 13 14 15 C D D D B

16 17 18 19 20 C D C B A 21 22 23 24 25 B A A A A


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SAFE DEPOSIT LOCKERS/SAFE CUSTODY

1. ‘A’ has hired a locker with your branch, he sends the key by post with an

intention to surrender the locker, in this situation----------

a) Bank will be discharged of its liability, if key is accompanied by a letter stating the contents of the lockers as NIL

b) The bank will not be discharged of its liability c) The bank should not accept d) Bank can accept subject to its rights under reserve

2. Your branch has a locker account in the joint names of ‘A’ and ‘B’ to be operated

as ‘either or Survivor’. You receive information of death of ‘B’, in this event--------:

a) A can operate the locker with legal heirs of B b) For operations of locker permission of court is needed c) A can operate the locker d) None of the above

3. A authorizes B for operating his locker. B approaches the bank for surrender

there of. How would you react?

a) B can surrender the locker b) B cannot surrender the locker c) If contents are nil he can surrender d) None of the above

4. When a locker is broken open the presence of which of the following is not must--

-------

a) Locker hirer or his legal heirs b) Two independent witnesses c) Branch officials d) Representative of local police

5. ‘A’ and his wife ‘B’ have hired a locker in joint names; ‘A’ is residing abroad. ‘B’

informs about loss of key of the locker and asks for breaking open the locker, in this event-----:

a) Bank will not accept the request b) Bank can accept on the basis of indemnity c) Bank can accept the request on the basis of indemnity bond and power of

attorney in her favour from A d) None of the above


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6. When a hirer surrenders a locker, the surrendered locker--------------

a) Cannot be allotted to any other person b) After interchanging the lock of the locker with any other empty locker, it can

be allotted to any new hirer c) The surrendered locker can be allotted to new hirer only after 3 years from

date of surrender d) None of the above

7. A locker on hire can not be given to which of the following-----------:

a) A minor b) An illiterate person c) To clubs, societies & associations d) All of the above

8. A and his wife B are having locker with ‘either or survivor’ clause. A informs that

his wife has gone insane and requests the bank not to allow her to operate the locker. The bank---------------

a) Will allow operation by B till A gives a certificate to the bank to the affect that

B has become insane and bank is satisfied with this. b) Will not allow operation by her c) Only joint operations here after d) None of the above

9. What would be the course of action in case of loss of safe custody receipt by the

customer----------: a) If satisfied, the bank can issue a duplicate on written request from the

customer b) The contents would be seized c) The bank can issue a duplicate after obtaining indemnity bond. d) Duplicate cannot be issued as it is not a negotiable instrument

10. When the bank accepts articles for keeping in safe custody, the relationship

between the banker and the customer is that of------------

a) Trustee and beneficiary b) Bailor and bailee c) Chief and agent d) Bailee and Bailor


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11. A customer keeps NSCs in the name of his minor son in safe custody with the

bank. Immediately after attaining majority the son approaches the bank with a request that the certificates be delivered to him as he is major now, in this event----------,

a) Bank will not deliver to him b) Bank will deliver to him after attaining proper introduction and discharge c) Bank will neither deliver him nor let him have the details d) Bank will deliver to the father who had handed over the certificates to the

Bank

12. Articles left in safe custody cannot be delivered on the basis of a succession certificate because----:

a) These are not included in debt and securities as defined under Indian

succession act 1925 b) It is not allowed under RBI act c) It is not permitted under negotiable instruments act d) None of the above

13. A minor wants to keep certain articles in safe custody. The Bank ------------

a) Will not accept the articles b) Can accept and keep articles in safe custody c) Can accept if it is a fixed deposit in his name d) None of the above

14. ‘A’, while keeping a sealed packet in safe custody gives instruction to the bank

that the packet should be delivered to the ‘B’ after his death. In this event, bank ----------

a) Can accept the articles b) Should not accept the packet c) Can accept with power of attorney in favour of B d) None of the above

15. In case of accepting articles in safe custody, the nomination facility is available

under

a) Negotiable instruments act 1981 b) Banking Regulations act 1949 c) RBI act 1934 d) Indian contract act 1872


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16. Mr. X, approaches your branch to deposit in safe custody, his term deposit receipt (issued by other bank), How would you react-----------------------

a) It can be accepted, provided the other bank has no objection to this b) It can be accepted, if the customer provides indemnity bond c) It can be accepted in normal course d) It cannot be accepted, since it is a term deposit issued by another bank, this

has primary lien on deposit.

17. The packets or boxes accepted for keeping in safe custody must bear which one of the following seals------------:

a) Seal of the Bank b) Seal of the depositor c) Both the above d) None of the above

18. The relationship between the bank and hirer of a locker is that of------------:

a) Debtor-Creditor b) Bailor-Bailee c) Licensor -Licensee d) Principal-agent

19. Locker hiring Charges for a locker (small type) in a Urban Branch are------:

a) Rs. 550 p.a. b) Rs. 750/- p.a. c) Rs. 1000/- p.a. d) None of the above

20. Safe custody receipt in respect of branch duplicate keys is kept in the a) joint custody of the branch manager and manager cash b) sole custody of the branch manager in his hand safe. c) joint custody of the accountant and cash officer d) sole custody of accountant

KEY : Safe Deposit Lockers/Safe custody

Q. 1 2 3 4 5 6 7 8 9 10

Ans. a c b d c b a c c d

Q. 11 12 13 14 15 16 17 18 19 20

Ans. b a c b b c b c c b


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DISPOSAL OF ASSETS OF DECEASED CONSTITUENTS

1. The term intestate is used with reference to ------------

a) Settlement of claim in case of a deceased customer b) Payment to the nominee in case of a deceased customer c) A person died without leaving a will. d) A person died after leaving a will

2. As per extant instructions regarding payment of balances in the deceased

constituents accounts, no separate affidavit (COS 539) would be required for an aggregate amount upto Rs.______ a) Rs. 0.50 lacs b) Rs. 1 lac c) Rs. 2 lacs d) Rs. 3 lacs

3. As per extant instructions regarding payment of balances in the deceased

constituents accounts, for an aggregate amount above Rs. 1 lac separate stamped affidavit (COS 539) would be required, which should be signed by: a) One person b) Two persons c) Three person d) four persons

4. A person will be declared as legally dead, if for a period of_.....year or more, the

persons who would have normally known of his existence have not heard of him / known of his existence: a) 5 b) 6 c) 7 d) 8

5. When a person dies without leaving behind a will, a person appointed by court to

manage his estate is called: a) An executor b) An attorney c) An administrator d) A trustee

6. A box was kept as a safe deposit article at your branch. The legal heir to the estate of the deceased has now requested you to deliver the article to him. Which of the following documents is to be obtained? a) Succession certificate b) Letter of administration c) Affidavit -cum-indemnity bond d) A simple receipt signed by the heir


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7. A Probate is-------------------------- a) Will of the deceased. b) The last will of a person certified by legal heirs c) A copy of will certified by a court for settlement of property of the deceased.

d) A registered will of the deceased. 8. A will is Probated by the Court under which of the following Act--------------------

a) Indian Succession Act b) Banking Regulation Act c) Indian Contract Act d) Hindu Succession Act

9. An ‘Executor’ is-------------:

a) A person appointed by the court to sell the assets of a deceased person. b) A person who is named in the will of a deceased person to manage his estate c) A person appointed by the legal heirs to execute their orders. d) None of the above.

10 As per extant instructions as regards to payment of balances in the deceased

constituents accounts, no surety would be required for an aggregate amount upto Rs.----------- a) Rs.1, 000 b) Rs. 50,000 c) Rs. 10,000 d) Rs. 20,000

11 A succession certificate is---------------

a) A document in the form of a court certificate which authorises a person to succeed to the properties of a deceased person.

b) A document which authorises to receive property c) An order by a court. d) A petition approved by a court.

12. A succession certificate issued by a court of law is operative ----------

a) Within the Distt. b) Within the State c) Within India. d) At a place specified in the certificate.

13. A succession certificate is issued in respect of which of the following-----: a) Debts and Securities due to the deceased (i.e. deposits and shares/securities) b) Gold Silver etc. c) Gold offered as security of loan. d) None of the above.


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14. Which of the following statement is not correct----------?

a) Nomination can be made by illiterate depositor b) Nomination can be made in joint Accounts also c) Only one person can be nominated in deposit accounts d) Two persons can be nominated in the Joint Deposit Accounts

15. Nomination by illiterate to be witnessed by-------------

a) One person b) Two persons c) A Bank Official d) Nominee

16 For a deposit account in the name of a minor, who can make the nomination------

a) The natural guardian or legal guardian b) The minor himself c) No nomination in minor deposits d) None of the above

17. Nomination, cancellation of Nomination and change in nomination require---------

a) Registration with Revenue authorities b) Registration with Co. Act c) Registration with RBI under BR Act d) No Registration is required

18. In case the nominee predeceases the account holder, the nomination----------------

a) Automatically Stands cancelled b) Requires request for cancellation c) Legal representation is required d) Will require renewal

19. Nomination can be made in favour of------------:

a) Institutions/Societies b) Joint Nominee c) Individuals d) Blood Relation only

20 The person who makes a Will is

a) Legatee b) Testator c) Executor d) None of the above


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21. The person who inherits property under a Will is

a) Legatee b) Testator c) Executor d) None of the above

22. A will to be valid must be ------- a) Attested or witnessed by 2 or more witnesses b) Attested or witnessed by one witness is sufficient c) Attested or witnessed by 4 or more witnesses

d) Need not be attested or witnessed 23. A will to be valid must be -------

a) Should be stamped b) Attracts advalorem c) No stamp duty is required d) To be executed on a stamp paper

24. The document that alters, adds or explains a will and is deemed to be part of a

will is-------

a) Annexure b) Add-on will c) Codicil d) None of these

25. While opening account in the name of an executor we must obtain----

a) Original Will b) Probate c) Succession Certificate d) Letter of Administration

26. Balance in the account of a deceased constituent can be attached by a

a) Garnishee order issued by the Court b) Attachment order of Revenue Authority c) None of these

27. Which of the following documents you will call for in permitting removal of the

contents of the locker in case of death of locker hirer who has not nominated any one? a) Heir ship certificate b) Succession certificate c) Certificate of administration general d) Letter of administration


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28. As per RBI instructions claim upto Rs. ________ can be settled without legal

representation if there is no dispute and Bank has no reasonable doubt about the claimant and all legal heirs join in indemnifying.

a) 10 lacs b) 25 lacs c) 100 lacs d) No limit

29. Payment to the claimants of deceased claim cases is made---------- a) by credit to the accounts of claimants b) by adding the name of the claimants to the accounts of the deceased

constituent c) to be made through Bankers’ Cheque, which should be properly

discharged d) by cash

30. What is the procedure of delivering the gold ornaments pledged to the bank

without legal representation? a) The Letter of Indemnity is to be obtained on the appropriate form b) The receipt of the claimants is to be obtained in the Gold Loan Ledger

under authentication of the joint custodians c) A separate receipt detailing the items delivered is to be obtained from the

claimants d) All the above

31. As per RBI instruction the claims up to a threshold limit of Rs------------ will be

entertained without insisting for valid death certificate in case of missing persons. a)1.00lac b) 0.50lac c)2.00lac d)1.50lac

32. The documents required for settling claim in respect of missing persons without production of valid death certificate are

a) FIR b)Non-traceable report issued by the police authorities. c) Indemnity from the claimant d) all the above


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Answers DISPOSAL OF ASSETS OF DECEASED CONSTITUENTS

1 2 3 4 5 6 7 8 9 10 c b a c c b c a b b

11 12 13 14 15 16 17 18 19 20 a c a d a a d a c b

21 22 23 24 25 26 27 28 29 30 a a c c b b d d c d

31 a 32 d


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TRANSFER PRICE MECHANISM 1. MRFTP STANDS FOR

(a) Money related funds transfer procedure (b) Money related funds transfer pricing (c) Market related funds transfer procedure (d) Market related funds transfer pricing

2. MRFTP has been launched with the undernoted objectives in mind

(a) the previous exercise use to take lot of pain & labour (b) to save considerable time (c) to facilitate consolidation & transmission of the TPM reports to corporate center (d) Maintenance of backup registers, manual calculations /interventions and

validations were making the whole process of preparations of P –Form a cumbersome one

(e) All of the above

3. MRFTP is a scientific internal funds transfer price mechanism evolved to supplement the …….

(a) Top management (b) Profitability (c) Asset Liability management (d) Market pricing

4. MRFTP is a system under which the market is scanned on a daily basis to arrive at the …………… & ……………

(a) TP Bid rates (b)TP Offer rates (c) Interest Rates (d) a & b above

5. TP Bid rate is equivalent to

(a) C.O interest rates for deposits (b) SBAR (c) Bank Rate (d) None of the above


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6. TP offer rate is equivalent to

(a)C.O interest rates for advances (b)SBAR (c) Bank Rate (d)None of the above

7. TP rates are arrived at by a method called ( a) market Pricing (b) Security Pricing (c) Matched maturity funding (d) T P Funding

8 TP rates are calculated by taking into consideration ………………. of the account.

(a) the origination date (b)Maturity date (c ) repayment schedule (d)repricing characteristics (e)All of the above

9 Under MRTFP , TP rates are assigned to each deposit /advance account except for

(a) Cash Credit Account (b) MTL A/c (c) Demand Deposits (d) None of the above

10 TP rates are different for different market segments (a) Are same for all the segments and population groups (b) Similar for AGR & SIB segments only (c) Different for metros, urban , Semi Urban & Rural areas (d) Same for metro and urban and different for semi urban and rural

11 For staff deposits TP bid rate is ------basis points over and above the interest tate of the account

(a) 25 (b) 30 (c) 10 (d) 15


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12 For all term deposit products the TP bid rates are picked up from the ………….., on the date of origination of the deposit, for the tenor/period of the deposit.

(a) Market (b) ALM Deptt (c) RBI (d) TP Bid Curve

13. The Demand deposits are non maturity deposit accounts like Savings account,

Current Account where maturity pattern is arrived at based on the behavioral study of …………. . (a) Customers (b) Share Market (c) Debt Market (d) the said accounts

14. For Savings , it is assumed that 10 % of the balances are paid on the …. day and the remaining balance of 90 % is paid at the end of the 1st year, 3rd Year and 5th Year in equal proportions.

a) 14th

b) 10 th

c) 30th

d) 15th

15. TP bid rate for Savings account is

(a) 14day rate* 0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) (b) 10day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) (c) 15day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) (d) 30day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3)

16. TP bid rate for Current account is

(a) 14day rate* 0.15,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.25) (b) 10day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) (c) 15day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) (d) 30day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3)

17. TP bid rate for special schemes/ Foreign currency deposits is arrived at by

adding ………to the interest rate of the deposits

(a) Expenses (b) Commission (c) 30 basis points (d) None of the above


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18. For cash balance Tp offer rate of-----day/days as on date of transfer pricing date

is taken

(a) 14 (b) 7 (c) 1 (d) 3

19. For fixed rate loans as demand deposits,(except demand deposits against bank’s

own securities and term loans TP offer rate is arrived at by a method called ------ (a) duration (b) behavioural analysis (c) moving averages (d) projection

20. For fixed rate loans like CC&OD TP offer rate is arrived , just like in ……

(a) DL (b) TL ( c) SB/CA (d) one of the above

KEY TO ASSIGNMENT

TRANSFER PRICE MECHANISM

1 2 3 4 5 D E C D A 6 7 8 9 10 A C E C A 11 12 13 14 15 A D D A A 16 17 18 19 20 A C C A C


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Remittances/Collections-1

1. RTGS stands for -----------

a) Risk Taking Guarantee Scheme b) Real Time Gross Settlement c) Right Transaction General Scheme d) None of the above

2. RTGS Scheme is managed by----------

a) State Bank of India b) Indian Bank’s Association c) Reserve Bank of India d) None of the above

3. For customer to customer transaction minimum amount that can be sent is

a) Rs2.00lacs b) Rs5.00lacs c) Rs1.00lacs d) No minimum

4. Transactions under RTGS are reconciled at---------

a) CDC Belapur b) IOR Deptt. C.O. Mumbai c) F.D. Calcutta d) Reserve Bank Of India

5. In case of payment of IOI, the paying Banker is protected under section_______ of Negotiable Instrument Act1881, if other conditions are satisfied:

a) 85 b) 85A c) 131 d) 138

6. A duplicate IOI can be issued for an amount up to Rs. ____ without waiting for the non-payment advice from the drawee branch:

a) Rs.5,000 b) Rs.10, 000 c) Rs.15, 000 d) Rs.15, 000

7. For valued constituents, a duplicate IOI can be issued without insisting for any

surety, where the amount of IOI is below Rs. ---------

a) Cannot be issued without obtaining surety b) Rs.60, 000/- c) Rs.80, 000/- d) Rs.50, 000/-


24

8. The drawer of a cheque has the right to stop its payment. In the case of a IOI------:

a) The branch issuing the IOI has a right to stop its payment b) Only the applicant for the IOI has a right to stop its payment c) Payment of IOI cannot be stopped d) None of the above]

9. In the event of Original and duplicate IOI are presented for payment through clearing, by two different banks on the same day, the Bank-------------

a) Will pay the duplicate b) Will pay the original c) Will return both d) both will have to be paid

10. Hologram will be affixed on all IOI of Rs.____ & above includingIOI issued on

continuous stationary:

a) Rs.0.50 lac b) Rs.1 lac c) Rs. 2 lacs d) Rs. 10 lacs

11. In case of collection of IOI the collecting Banker is protected under section…..

Of Negotiable Instrument Act1881.

a) 85 b) 85 A c) 131 d) 131 A

12. Branches will provide immediate credit to customers’ accounts in respect of outstation cheques up to Rs _______ as per RBI directives:

a) Rs.5, 000 b) Rs. 7,500 c) Rs.15, 000 d) Rs. 20,000

13. While making the payment of a Banker’s Cheque by cancellation, which of the

following statement is not true:

a) A stamped letter of Indemnity on COS 537 would be required b) The purchaser can give a simple request letter for cancellation

c) His receipt on the back of the Banker’s Cheque (on a revenue stamp if the amount is Rs 500 and above) under the words,” Received Payment by Cancellation “would need to be obtained

d) Strict identification should be insisted upon if the amount is paid in cash


25

14. The present ceiling limit per transaction under Electronic Fund Transfer (EFT) is ------------:

a) Rs. 1 lac b) Rs. 5 lacs c) Rs. 2 crores d) No Ceiling since 01-11-04

15. Interest on delayed collection of instruments is paid by debit to------: a) Interest Account b) Charges Account-Sundries c) Savings Bank Interest Account d) None of these

16. Drop box facility should not be used for which of the following type of instruments-----------:

a) Local Clearing Cheques b) Cheques drawn on Branch c) Cheques against Government Challans d) Outstation cheques for collection

17. A drop box with 03 slits/compartments has three coloured powder coated compartments-which are these colours:

a) Red, Blue, Green b) Blue, Green, Yellow c) Blue, Red, Yellow d) Red, Green, Yellow

18. As per extant RBI instructions relating to payment of compensation for delayed

collection of instruments, banks should pay interest @ ______________ for the period of delay.

a) 2% above fixed deposit rate applicable for abnormal delay b) 1.5% above fixed deposit rate applicable for abnormal delay ( c) 1% above fixed deposit rate applicable for abnormal delay ( d) Savings Bank Rate

19. Bank has decided to waive, issue of draft advices in Agency Clearing upto Rs.------:

a) 25,000 b) 50,000 c) 10,000 d) 1,00,000

20. A customer X deposits Rs. 5000/- with the bank for remittance by way of telegraphic transfer for credit of Y’s account at other station. The relationship between Y and bank in this case is that of a:-

a) Principal and agent b) Beneficiary and trustee c) Debtor and Creditor d) Trustee and beneficiary


26

KEY TO ASSIGNMENT Remittances/Collections-1

Q. 1 2 3 4 5 6 7 8 9 10

Ans b c c d b b d c a b

Q. 11 12 13 14 15 16 17 18 19 20

Ans d d a d b c c d c b


27

Remittances/Collections-2

21. An IOI can be revalidated--------- a) Once b) Twice c) No restrictions d) It can’t be revalidated

22. Banker Cheques are to be credited to charges account if they are unclaimed for--------

a) Six months b) One year c) Three years d) None of these

23. Maximum amount for which an IOI can be issued is

a) Rs100,00,00,000 b) Rs99,99,99,999

c) 99,00,00,000 d) none of these

24. Which one of the following is required to be submitted by an applicant for issuance of DDs, BCs of Rs. 50,000 and above--------

a) Form 60/61 b) PAN No. c) Neither a nor b d) either a or b

25. IOI has ----------digit running serial number

a) 12 b)10 c)11 d)16

26. IOI is valid for----- a) 6 months b) 12 months c) so long it is revalidated d) none of the above

27. IOI instruments when examined under Ultra violet rays will show the water mark of---------

a) our corporate centre building b) SBI’s logo c) words SBI d) none of the above

28. The Hologram has nine digit number. The first two digits represent ---------

a) Circle code b) First two digits of BSR code c) RBI allotted code for our bank d) First two digits of branch code


28

29. Before allowing immediate credit facility (DDP), it is to be ensured that, ---------

a) Account has been opened for a period not less than six months b) Minimum balance requirements are met c) Cheques deposited for collection/credit to the account have not been returned

unpaid d) All the above

30. What is the time frame for collection of cheques (drawn on our own branches),

between Metropolitan Centres/ Major “A” Class cities?

a) 6 days b) 7 days c) 8 days d) 10days

31. What is the time frame for collection of cheques (drawn on other bank

branches), between Metropolitan Centres/ Major “A” Class cities?


32. What is the time frame for collection of cheques (drawn on our own branches),

between Metropolitan Centres / Major “A” Class cities and State Capitals (Other than North Eastern States & Sikkim) ?



branches), between Metropolitan Centres / Major “A” Class cities and State Capitals (Other than North Eastern States & Sikkim) ?



branches), between centres other than Metropolitan Centres/ Major “A” Class cities and State Capitals (Other than North Eastern States & Sikkim) ?


35. What is the time frame for collection of cheques (drawn on our bank branches),

between centres other than Metropolitan Centres/ Major “A” Class cities and State Capitals (Other than North Eastern States & Sikkim) ?



29

37.The compensation on account of delays in collection of instruments in foreign currency would be-- a) At 5% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to deposit accounts b) At 4% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to deposit accounts c) At 1.5% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to deposit accounts d) At 2% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to deposit accounts

38.If the collection is realized beyond 45 days it is treated as--------- a) Normal Delay b) Abnormal dealy b) Delay is delay, it hardly matters whether normal or abnormal d) No such classification 39.If there is abnormal delay in realization of collection and the proceeds were meant for credit to overdraft or loan account of the customer, the interest payable would be at------- a) Savings Bank Rate b) SBAR c) Rate applicable on Overdraft/Loan

d)1% above the applicable interest rate to the loan account or SBAR, whichever is lower

40.Force Majure means

a) external acts over which the Bank has control b) the Bank is liable to compensate the customers for such acts c) These are the acts done by the customer d) these are unforeseen events beyond the control of the Bank

KEY TO ASSIGNMENT Remittances/Collections-2

Q. 21 22 23 24 25 26 27 28 29 30

Ans. a c b b a a a a d c

Q. 31 32 33 34 35 36 37 38 39 40

Ans. a b c d c d a b d d


30

INSPECTION/AUDIT-I

1. RFIA stands for---------

a) Return Focus Internal Audit b) Risk Factor Internal Audit c) Risk Focused Internal Audit d) None of the above

2. Inspection and Management Audit Department, Corporate Centre is located

at---

a) Navi Mumbai b) Jaipur c) Hyderabad d) Lucknow

3. Who conducts Credit Audit?

a) Inspection and Management Audit Department, Corporate Centre, Hyderabad

b) Circle Audit Department c) RBI Auditors d) Concurrent Auditors

4. Statutory Audit is conducted by-----------

a) Banks Internal Auditors b) RBI Officials c) Charted Accountants empanelled by RBI d) Concurrent Auditors

5. What is true in respect of RFIA?

a) RBI introduced Risk Based Supervision in banking industry due to frequent changes in International Banking Scenario & globalisation,

b) RBI announced the move towards Risk Based Supervision in its monitory policy for 2001-02

c) RFIA is part of RBS d) All the above

6. Frequency of circle audit is

a) once a year b) in between two corporate centre audits c) Once in two years d) As directed by RBI


31

7. Under circle audit branche has to submit compliance remarks within ------- months?

a) 4 b) 1 c) 3 d) 2

8. Serious Irregularities under Group Heading (SIGH) of the erstwhile inspection

report format has been replaced by-------

a) SDRM b) MRDS c) DRSM d) None of the above

9. SRDM stands for-------

a) Serious Drawback in Risk management b) Serious Deviations in Risk management c) Serious Deficiency in Risk management d) Small Deficiency in Risk management

10. When was RFIA introduced in SBI?

a) 01-04-2003 b) 01-04-2002 c) 01-01-2003 d) None of these

11. New branched are eligible for RFIA in ---months

a) 12 b) 24 c) 15 d) 18

12. Audit conducted in respect of a particular area either at the request of controller or decided by Inspection dept, LHO depending on circumstances is called?

a) controlled audit b) internal audit c) concurrent audit d) spot audit


32

13. What is a Management Letter?

a) It indicates the staff strength of a branch b) It describes the customer service of the branch c) It highlights crucial issues of concern d) It is the confidential report on the various functionaries at the branch

14. Under RFIA Branches are categorised into ------- groups

a) Two b) Three c) Five d) Seven

15. All branches with a minimum aggregate advance of Rs15 cr are placed under

a) Group I b) Group II c) Group III d) No such criteria

16. Group-II branches are -------

a) High Risk b) Medium Risk c) Low Risk d) No Risk

17. Group-III branches are -------

a) High Risk b) Medium Risk c) Low Risk d) No Risk

18. All CAG ,MCG and SAMG branches come under?

a) Group I b) Group II c) Group III d) No such criteria


33

KEY TO ASSIGNMENT INSPECTION/AUDIT-I

Q. 1 2 3 4 5 6 7 8 9 10

Ans. c c a c d b d a b a

Q. 11 12 13 14 15 16 17 18 19 20

Ans. a d c b b b c a


34

INSPECTION/AUDIT-II

1 ARF stands for

a) Audit related form b) Audit rating format c) Audit report format d) audir review form

2. Under RFIA ARF for different branches is-------?

a) Different for different categories of branches b) Same for all branches c) Same for group I and II d) Same for Group II and III

3. Which parameter has been delinked from RFIA?

a) Risk Rating based on Risk Parameters (1000 Marks) b) Business Rating based on Business Parameters (500 Marks) c) General Efficiency Rating on the basis of aggregate of Tier I & Tier II d) None of these

4 One of the following is not covered in ARF of Group I branches?

a) External compliance b) Credit risk management c) Operational risk management d) Hardware risk management

5 Maximum credit risk management score for group I branch in ARF is ----- a) 525

b) 425 c) 600 d) 750

6 Maximum credit risk management score for group I branch in ARF is-------- a) 400

b) 425 c) 500 d) 650


35

7. Maximum operational risk management score for group II branch in ARF is____ a) 700 b) 750

c) 800 d) 650

8 Out of total score of 1000 marks under Risk Rating a branch rated as “Unsatisfactory” has a score of---------

a) less than 50% b) less than 55% c) less than 45% d) less than 40%

9 Which of the following does not fall under high risk under “Zero Tolerance”

a) false certification of substantive nature in Branch Manager Monthly Certificate b) Non-checking of VVRs/BGL by a person other than whom they relate to c) Maintenance of password secrecy and prompt reporting of loss of password of

the INB Customer to the Security Manager, INB Mumbai. d) Proper custody and accounting of preprinted INB Kit, ATM Pin Mailers and

Welcome Kit e) None of the above

10. What is the revised periodicity of RFIA with effect from 01-01-2006 for branches scoring >85% under Group I?

a) within 18 months b) within 12 months c) within 15 months d) within 21 months

11. What is the revised periodicity of RFIA with effect from 01-01-2006 for branches scoring 70 -85 % Group II?


12. What is the revised periodicity of RFIA with effect from 01-01-2006 for branches

scoring 50%> under Group I ?



36

13. What is the revised periodicity of RFIA with effect from 01-01-2006 for branches scoring 50%> under Group II and III?


14. What is the revised periodicity of RFIA with effect from 01-01-2006 for branches < scoring 50%?

a) 10-12 months b) 6-8 months c) 8-10 months d) 7-9 months

15. What is the revised periodicity of RFIA with effect from 01-01-2006 for Newly opened branches?

a) within 18 months b) within 12 months irrespective of Group c) within 6-8 months irrespective of Group d) within 10 months

16. One of the following is not covered under operational risk----- a) customer service b) control system

c) general branch mangement d) problem loan management

17. One of the following is not covered under credit risk---?

a) Pre sanction b) Problem loan management c) remittances d) post sanction

18. Post Audit process comprises of-------

a) Rectification of irregularities by branches b) Causes of deficiencies to be identified c) Controllers to submit action taken for correction along with recommendations for

closer of report d) All the above

19. Credit Audit covers borrower accounts with credit limits ------

a) Rs. 5 crore and above b) Rs10 crore and above c) Rs. 15 crore and above d) Rs.3 crore and above


37

20. Systems audit has been renamed as

a) Procedure audit b) Operational audit c) Compliance audit d) Systems and procedure audit

21. RBI Audit is conducted under------?

a) section 35 of Banking Regulation Act b) section 51 of Banking Regulation Act c) section 35 of RBI Act d) section 35 of SBI Act

KEY TO ASSIGNMENT INSPECTION/AUDIT-II

Q. 1 2 3 4 5 6 7 8 9 10

Ans. c a b d a c b a e a

Q. 11 12 13 14 15 16 17 18 19 20

Ans. d c a b b d d d b d

Q. 21

Ans. a


38

BASEL II, Capital Adequacy & Risk Managment 1. The world’s oldest international financial organization, Bank for International

Settlements (BIS) having 55 member central banks is situated at:

a) Paris b) Tokyo c) London d) Basle/Basel, Switzerland

2. The Basel Committee on Banking Supervision [BCBS], is a committee of central

banks that meets_____________ at the Bank for International Settlement [BIS] in Basel, to provide broad policy guidelines governing the capital adequacy of internationally active banks

a) Every month b) Every three months c) Every six months d) Once in a year

3. The Basel Committee on Banking Supervision [BCBS], was set up in ________

by G-10 countries.

a) 1970 b) 1972 c) 1975 d) 1978

4. Basel standards are being used as a benchmark by ____________ in conducting

their assessment of the banking system of a country.

a) IMF b) World Bank c) Both of the above d) None of the above

5. Basel II norms relate to

a) Corporate Governance b) Non Performing Assets c) Capital Adequacy Ratio (CAR) d) None of the above


39

6. The Rationale for maintaining Capital Adequacy is

a) To meet the unexpected losses or losses beyond normal range of operations b) To meet the expected losses c) Both of the above d) None of the above

7. International Convergence of Capital Measurement and Capital Standards: A

Revised Framework (Basel II ) released by BCBS on __________

a) 26 June 2004 b) 30 June 2004 c) 30 August 2004 d) 26 July 2004

8. The Basel II revised framework consists of three mutually reinforcing pillars. Which among the following is not the reinforcing pillar ?

a) Minimum capital requirement b) Market discipline c) Supervisory review of capital adequacy d) ALM Management

9. The Risks Which Determine Capital Requirement under Pillar 1

a) Credit Risk b) Market Risk c) Operational Risk d) All of the above

10. As per Basel II Capital Adequacy Ratio should be :

a) 8% b) 9% c) 10% d) 11%

11. As per RBI Capital Adequacy Ratio should be :

a) 8% b) 9% c) 10% d) 11%


40

12. As per Basel II Capital Adequacy Ratio is :

a) Tier 1 + Tier 2/ Risk Weighted Assets for Credit risk + Operational risk b) Tier 1 + Tier 2/ Risk Weighted Assets for Credit risk +Market risk c) Tier 1 + Tier 2/ Risk Weighted Assets for Market risk + Operational risk d) Tier 1 + Tier 2/ Risk Weighted Assets for Credit risk +Market risk +

Operational risk

13. As per the Prudential Guidelines on Capital Adequacy issued by RBI, Indian banks having operational presence outside India shall adopt Basic Indicator Approach with effect from

a) March 31, 2010 b) March 31, 2009 c) March 31, 2008 d) March 31, 2007

14. Basel II recognises the element of diversification of risk in the

___________sector/s and has assigned a lower risk weight for retail exposure under standardised approach.

a) SME b) AGL c) Both of the above d) None of the above

15. RBI has put forward a framework consisting of few options for calculating operational risk capital charges in a ‘continuum’ of increasing sophistication and risk sensitivity. These options are: a) The Basic Indicator Approach (BIA) b) The Standardised Approach (TSA) c) Advanced Measurement Approaches (AMA). d) All of the above

16. Under the Basic Indicator Approach, banks have to hold capital for operational

risk equal to __________ of average Gross Income for the preceding 3 years.

a) 15% b) 18% c) 20% d) 10%


41

17. For measuring Credit Risk which of the following menu of Approaches is not suggested:

a) Standardised Approach b) Foundation Internal Rating Based (IRB) Approach c) Advanced Internal Rating (IRB) Approach d) Internal Models Approach

18. For measuring Market Risk which of the following menu of Approaches is not

suggested:

a) Standard Approach b) Internal Models Approach c) Advanced Measurement Approach (AMA) d) None of the above

19. For measuring Operational Risk which of the following menu of Approaches is not suggested:

a) Basic Indicator Approach b) Standardised Approach c) Advanced Measurement Approach (AMA) d) None of the above

20. The Revised Framework (Basel II) consists of _______Pillar/s

a) Minimum Capital Requirements

b) Supervisory Review of Capital Adequacy

c) Market Discipline

d) All of the above

21. The Bank has migrated to Basel II Framework with effect from: a) 31-03-2008 b) 31-03-2009 c) 31-03-2007 d) 01-01-2008

22. RBI has asked banks to submit applications for implementing The Standardized

Approach (TSA) by:

a. 31-03-2008 b. 01-04-2009 c. 01-04-2010 d. 01-01-2010


42

23. The Standardized Approach (TSA) involves the reclassification of the income and interest expenses of the Bank into ________ business lines: a) 4 b) 8 c) 7 d) 9

24. For implementation of TSA all new accounts being opened have to be classified

either under Retail Banking or Commercial Banking. Which of the following statements are correct in this regard:

I. All advances and deposits in PER segment will be treated as Retail

Banking. II. Exposure (fund based & non-fund based) to an individual person or

persons or to a small business will be treated as Retail Banking. III. All existing Deposit accounts in National Banking Group (NBG) shall be

classified under Retail Banking Group. IV. All Deposit accounts in Corporate Accounts Group (CAG) and Mid

Corporate Group (MCG) will be treated as Commercial, except Staff accounts.

a) (i) & (iv) b) (ii) , (iii) & (iv) c) (i), (iii) & (iv) d) All of the above

25. For implementation of TSA Small Business is defined as one:

(i) where the total annual turnover is less than Rs. 50 crores (ii) The maximum aggregate Fund Based exposure should not exceed the

absolute threshold limit of Rs. 5 Crores irrespective of the existing segmentation into SSI, C&I.

(iii) The maximum aggregate exposure (Fund Based + Non Fund Based) should not exceed the absolute threshold limit of Rs. 5 Crores irrespective of the existing segmentation into SSI & C&I.

(iv) the maximum aggregate exposure (Fund Based + Non Fund Based) should not exceed the absolute threshold limit of Rs. 5 Crores irrespective of the existing segmentation into SSI, C&I or AGL

a) (i) & (iv) b) (i) & (ii) c) (i) & (iii) d) None of the above


43

KEY

BASEL II, Capital Adequacy & Risk Managment

1 2 3 4 5 6 7 8 9 10

d b c c c a a d d a

11 12 13 14 15 16 17 18 19 20

b d c a d a d c d d

21 22 23 24 25

a c b d a


44

BASEL II, CAPITAL ADEQUACY & RISK MANAGMENT

1. The overall responsibility for overseeing the risk management processes in our

Bank is of _____________.

a) Chairman b) The Risk Management Committee of the Board (RMCB) c) Risk Management Department, Corporate Office d) None of the above.

2. The Chairman and convener of Operational Risk Management Committee is ______:

a. Chairman b. Managing Director & CCRO c. CGM (Risk Management) d. CGM (I & A)

3. The objective/s of the Business Continuity Plan is/are:

a) To limit the impact of a disruption caused by any disaster, on people, processes and infrastructure

b) To ensure continuity, resumption and recovery of critical business processes at an agreed level, to be approved for each business function/Office

c) To take into account the potential for major disasters that could impact an entire region and plan for minimizing its impact on business and staff.

d) All of the above.

4. Business Continuity policy applies to:

a) Branches only b) Corporate office

c) LHOs and Administrative Offices d) All business and functional areas within the Bank which includes all its

branches and offices. 5. As per regulatory requirements, the Bank needs to put in place BCP for all its

offices within a specified time frame by ___________.

a) 31-03-2008 b) 31-03-2009 c) 31-03-2010 d) No time limit has been fixed by RBI for the purpose.


45

6. The deadline for switching over to the New CRA Models (CRA 2007) by all Branches was:

a) 30th September, 2007 b) 26th November, 2007 c) 31st December, 2007 d) 31st March, 2008

7. The new CRA models will be applicable to all accounts in :

a) Non-Trading Sector (C&I, SSI & AGL segments) b) Trading Sector (Including Services). c) Both of the above d) All segments of the Bank

8. The new CRA models will be applicable to all accounts with Aggregate Exposure

(FBL + NFBL) of Rs. ____________

a) 10 lacs and above b) 25 lacs and above c) 50 lacs and above d) 100 lacs and above

9. CRA 2007 have ______________ models:

a) Simplified Model b) Regular Model c) Both of the above d) Basel Model

10. Simplified Model covers accounts with exposure of

a) Rs. 10 lacs and above, but upto Rs. 1 crore. b) Rs. 25 lacs and above, but upto Rs. 2 crores. c) Rs. 25 lacs and above, but upto Rs. 5 crores. d) Rs. 100 lacs and above, but upto Rs. 10 crores.

11. Regular Model covers accounts with exposure

a) above Rs. 1 crores. b) above Rs. 2 crores. c) above Rs. 5 crores. d) above Rs. 10 crores.


46

12. Simplified Model has __________rating/s

a) Borrower Rating b) Facility Rating c) Country Rating d) All of the above

13. Regular Model has __________rating/s

a) Borrower Rating b) Facility Rating c) Country Rating d) Both (a)&(b)

14. The Rating Scale under Borrower Rating has been expanded to _______ Grades

(SB1 to ______)

a) 08, SB 08 b) 10, SB 10 c) 12, SB 12 d) 16, SB 16

15. The Rating Scale under Facility Rating has been expanded to _______ Grades

(FR1 to ______)

a) 08, FR 08 b) 10, FR 10 c) 12, FR 12 d) 16, FR 16

16. Hurdle Grade under Borrower Rating is ______ & under Facility Rating is ________

a) SB 04 & FR 04 b) SB 08 & FR 08 c) SB 10 & FR 10 d) SB 12 & FR 12


47

17. Units having ____________will be eligible for additional Score under Borrower

Rating.

a) Solicited Ratings from recognised External Credit Rating Agencies ( ECRA)

b) Current Ratio > 1.33:1 c) TOL/TNW < 1.50 d) None of the above

18. Country Ratings are applicable for units having ________Assets/ Cash flows originating outside India:

a) 25% or more Assets b) 25% or more Assets & cash flows c) 20% or more Assets d) 20% or more Assets & cash flows

19. Country Ratings circulated by

a) Credit Policy and Procedures Department b) Credit Risk Management Department c) Foreign Department /GMU Kolkata d) Risk Management Department

20. While mapping ratings of borrowers as per the new CRA Model vis-à-vis the old

Model, which of the following combination is not correct:

New Rating Old Rating (i) SB1, SB2 SB1 (ii) SB3, SB4, SB5 SB2 (iii) SB 10 SB5 (iv) SB8, SB9 SB4

a) (ii) b) (iii) c) (ii) & (iii) d) None of the above


48

21. While mapping ratings of borrowers as per the new CRA Model vis-à-vis the old

Model, which of the following combination is not correct:

New Rating Old Rating (i) SB11, SB12 SB 6 (ii) SB6, SB7 SB 3 (iii) SB 13, SB 14 SB 7 (iv) SB 15, SB 16 SB 8

a) (ii) b) (iv) c) (ii) & (iii) d) None of the above

22. "Risk Register" is to be maintained to capture and record the range of high level risk events that might have an impact on the performance of an operating unit and the plans for mitigating them by :

a) All branches, b) All CPCs c) Administrative Offices & LHOs d) All branches, CPCs and other offices of the Bank.

23. “Risk Register” is required to be introduced by 30-6-2009 and requisite data

relating to FY 2009-10 starting from _________ till date should be incorporated therein. a) 01-04-09 b) 01-06-09 c) 01-07-09 d) 01-01-09

24. Under Centralised Access Control Policy for de-provisioning of user-IDs, the User-ID of the staff who has been posted abroad/ outside the Bank in other organisation etc. (on deputation) will be

a) De-activated. However, it can be activated by LHO functionaries as and

when required. b) Permanently deactivated with past records c) Deactivated by the respective transferor branch. The user-IDs will be

reactivated upon resuming duty at the transferee branch. d) None of the above.


49

25. Under Centralised Access Control Policy for de-provisioning of user-IDs, the User-ID of the staff who has been transferred to other branch/office will be

a) De-activated. However, it can be activated by LHO functionaries as and

when required. b) Permanently deactivated with past records c) Deactivated by the respective transferor branch. The user-IDs will be

reactivated upon resuming duty at the transferee branch. d) None of the above.

26. Under Centralised Access Control Policy for de-provisioning of user-IDs, the User-IDs not put to use in CBS for 15 days and above will be automatically Deactivated in CBS and reactivation will be made at the request of branch head/ department head/ controller

a) 15 days b) 30 days c) 45 days d) 60 days

27. One of the prerequisites for migration to Internal Rating Based (IRB) Approach under Credit Risk is that the Bank should have capability to estimate a) Probability of Default (PD) b) Loss Given Default (LGD) c) Exposure at Default (EAD) d) All of the above

Key

BASEL II, Capital Adequacy & Risk Management

1 2 3 4 5 6 7 8 9

b b d d d b c b c

10 11 12 13 14 15 16 17 18

c c a d d d c a b

19 20 21 22 23 24 25 26 27

c d b d a a c a d


50

ASSIGNMENT – 1 (Deposit Accounts)

01 As per Savings Bank Rules- Minors who can adhere to uniform signature and are

not less than 10 years old, can open Savings Bank Accounts in their single name and can maintain a maximum balance of:

a) Rs.20,000/- b) Rs.50,000/- b) Rs.10,000/- d) Rs.2,00,000/-

02 The Maximum deposit in the minor’s a/c under guardianship can be up to-----:

a) Rs. 50000/- b) Rs 1.00 lac c) Rs 20.00 lac d) Rs 5.00 lac

03 What is the minimum cash amount that can be deposited in a Savings Bank

Account? a) Rs.1/- b) Rs.5/- c) Rs.10/- d) Rs.50/-

04 What is the minimum permissible amount for withdrawal from a Savings Bank

Account? a) Rs. 5/- b) Rs. 10/- c) Rs. 50/- d) Rs. 100/-

05 What are the service charges for debit entries in excess of thirty entries excluding

alternate channels like transactions through State Bank ATMs and Internet Banking during a half year in Savings Bank Account?

a) Rs. 5/- per entry b) Rs.10/- per entry c) Rs.15/- per entry d) Rs.20/- per entry

06 What is the minimum average balance required to be maintained in a current

account by Non-Individuals in Rural Areas & Other Areas

a) Rs.2500 & Rs. 5000/- respectively b) Rs. 5000 & Rs. 10000/- respectively c) Rs.2000 & Rs. 5000/- respectively d) Rs.1000 & Rs. 5000/- respectively

07 What is the minimum average balance required to be maintained in a current

account by Individual in Rural Areas & Other Areas



51

08 What is the minimum average balance required to be maintained in a non cheque

book operated Saving Bank account in Rural Areas & Other Areas


09 What is the minimum average balance required to be maintained in a cheque book

operated Saving Bank account in Rural Areas & Other Areas


10 What is the minimum & maximum period for Term Deposits of less than Rs 1 crore?

a) 14 days & 60 months b 7 days & 60 months c) 15days & 60 months d) 15 days & 120 months

11. What is the minimum & maximum period for Term Deposits of Rs 1 crore & above ?

a) 7 days & 120 months b 7 days & 60 months c) 15days & 60 months d) 15 days & 120 months

12 What is the minimum amount of deposit that can be accepted as Term / Special Term Deposit:

a) Rs.1000/- b) Rs.100/- c) Rs.500/- d) Rs. 5000/-

13 What is the minimum & maximum period for S.T.D.R accounts?

a) 3 months & 60 months b) 6 months & 120 months c) 6 months & 60 months d) 12 months & 120 months

14 What is the minimum & maximum period for R.D. accounts?

a) 3 months & 60 months b) 6 months & 120 months c) 6 months & 60 months d) 12 months & 120 months


52

15 Recurring Deposits are accepted in monthly installments of : a) Minimum Rs. 50/- Maximum Rs. 1000/- b) Minimum Rs. 100/- Maximum Rs. 10,000/- c) Minimum Rs. 100/- and thereafter in multiple of Rs. 10/- d) Minimum Rs. 100/- Maximum Rs. 5,000/-

16 The maximum amount of loan that can be granted against Term Deposits is:

a) 85% of principal amount b) 85% of principal amount + accrued interest c) 90% of principal amount d) 90% of principal amount + accrued interest

17. U/s 269 T of the Income Tax Act, the branches will make payment of time deposits

with interest thereon amounting to Rs.______ and above by way of credit to account/Bank Draft/crossed cheque only: a) Rs.10,000/- b) Rs.20,000/- c) Rs.50,000/- d) Rs.1,00,000

18. Which of the following statement is correct in respect of a nominated Term deposit account, when it is renewed?

a) A fresh nomination needs to be obtained every time the deposit is renewed b) The nomination taken at the time of issuance of the deposit can be treated

as a valid nomination for the term deposit renewed on maturity unless the depositor would like to change the nomination

c) A fresh nomination is required if the periodicity of deposit at the time of renewal is different from the original periodicity.

d) A fresh nomination is required if the renewed deposit is different from the matured deposit.

19 On premature payment of time deposits, interest will be applied @ _______below

the rate applicable for the period the deposit has run.

a) Zero % b) 0.5 % c) 1 % d) 2.0%

20. As per Section 194A of the Income Tax Act, banks are required to deduct tax at

source whenever interest on time deposits credited or paid or likely to be credited or paid to the account of a customer, exceeds Rs _____ per person, per branch in a financial year.

a) Rs.5, 000 b) Rs.10, 000 c) Rs.2, 500 d) Rs.20, 000


53

21. Which of the following statement/s is/are correct in respect of Saving Bank Account in the name of illiterate person: i) An illiterate person may open an ordinary Savings Bank account in his sole

name or jointly with other person(s). ii) Where one of the depositors is literate a cheque-operated joint account

payable to ‘any one, survivors can be opened iii) The thumb impression of the depositor on the Savings Bank account closing

form are to be witnessed in all cases, by an independent witness acceptable to the Bank.

iv) Accounts of illiterate depositors may be transferred, at their request, from one branch to another like the other accounts.

a) Only (i) b) Both (i) & (ii) c) (i), (ii) & (iv) d) All of the above

22. Which of the following statement/s is/are correct in respect of Saving Bank

Account in the name of a person not knowing either English or Hindi language?

i) Account can be opened in regional language known to person. ii) Account can’t be opened iii) Account can be opened jointly with the person knowing English or Hindi

language. iv) Account can be opened on the same terms and conditions as for an illiterate

person if not knowing regional language also. a) Only (i) b) Both (i) & (iii) c) (i), (iii) & (iv) d) Only (ii)

23. Which of the following statement/s is/are correct in respect of Saving Bank Account in the name of a visually impaired / blind person?

i) If a blind person is illiterate, or literate but unable to sign uniformly, account

can be opened on the same terms and conditions as for an illiterate person. ii) Operation by cheque in the blind / visually impaired depositor's account in the

sole name is not permitted. iii) Operation by cheque in the blind / visually impaired depositor's account in the

sole name may continue to be permitted, only under the signature of a duly constituted ‘power of attorney’ of the account holder or after furnishing an undertaking that the self operated cheque book facility be provided / extended to the depositor / customer at her / his own risk.

iv) In case of self operated cheque facility account of visually impaired / blind depositors, the third party cash payment of self drawn cheques is not permitted.

a) Only (i) b) Both (i) & (ii) c) (i), (iii) & (iv) d) None of the above


54

24. Which of the following statement/s is/are correct in respect of Saving Bank

Account in the name of pensioners?

i) 50% concession is being allowed in minimum balance to be maintained. ii) 50% concession is being allowed in service charges for not maintaining

minimum balance. iii) Account can be opened in joint names with the family pensioner

nominated in the PPO, in case pension paying Department permits. iv) Accounts of pensioners may be transferred, at their request, from one

branch to another.


25. In satisfactorily conducted accounts, immediate credit will be afforded for

outstation instruments deposited up to___________: a) Rs. 15,000 b) Rs. 10, 000 c) Rs. 20,000 d) Rs. 30, 000

26. Which of the following statement/s is/are correct in respect of issuance of

TDR/STDR?

i) The receipts for fixed deposits viz. Term Deposit / Special Term Deposits is to be issued in the form of a system generated advice on preprinted Non security form look alike receipt format

ii) Statement (i) is applicable to all branches of the bank irrespective of the location and type of the branch

iii) Statement (i) is applicable to all market segments iv) Statement (i) is applicable to any amount of deposit tendered v) Statement (i) is not applicable to Term Deposit / Special Term Deposits

received under State Bank Tax Saving Scheme 2006.

a) Only (i) b) Both (i) & (ii) c) (i), (ii) (iii) & (iv) d) All of the above

27. Loans against NR(E)RA and FCNR(B) deposits either to the depositors or third parties can be granted up to a maximum limit of_________.

a) Rs. 20 lac b) Rs. 50 lac c) Rs.100 lac d) Rs. 500 lac


55

Key to Assignment – 1 (Deposit Accounts)

Q. 1 2 3 4 5 6 7 8 9 10

Ans. d c c c a b a a b d

Q. 11 12 13 14 15 16 17 18 19 20

Ans. a a b d c d b b c b

Q. 21 22 23 24 25 26 27

Ans. d c c d d d c


56


1. The minimum amount of initial deposit allowable for Multi Option Deposit Accounts

(MODs) is:____________.

a) Rs. 10,000 b) Rs. 5,000 c) Rs. 1,000 d) Rs. 500

2 Multi Option Deposit Scheme, is the combination of :

a) TDR/STDR & R.D. b) TDR/STDR & C. A/c / S.B. A/c c) S.B. A/c & TDR/STDR d) S.B. A/c & R.D.

3. For partial withdrawal/ break up of MODs the unit amount is:

a) Rs. 10,000 b) Rs. 5,000 c) Rs. 1,000 d) Rs. 500

4. What is the maturity period of Multi Option Deposits?

a) 6 months and above, maximum 3 years. b) 1 year and above, maximum 3 years. c) 1 year and above, maximum 5 years d) 1 year and above, maximum 10 years

5. While making premature payment of MODS (unitised break up), which of the

following method will be applicable------

a) First in first out (FIFO) b) Last in first out (LIFO) c) Any one can be broken as opted by customer. d) None of the above.

6. What is the maturity period of MODs issued under Saving Plus Scheme?

a) 6 months and above, maximum 5 years. b) 1 year and above, maximum 3 years. c) 1 year and above, maximum 5 years d) 6 months, 12 months, 24 months or 36 months.

7. Under ‘Saving Plus Account’ the minimum ‘Threshold Amount’ should be Rs.

_______, however the depositor may opt for a higher threshold amount.

a) 15,000/- b) 10,000/- c) 1,000/- d) 5,000/-


57

8. In Saving plus Scheme the ‘Auto Sweep’ is operative on _______________and

MODs are issued for eligible amount.

a) 5th and 20th of every month b) 10th and 20th of every month c) Once a week (any day) or once a month (any date) as opted by the depositor. d) 15th and 30th of every month

9. Loan against deposits held under Saving Plus Scheme is granted up to---------

a) 75% of deposit b) 85% of deposit c) 90% of deposit d) Not permitted

10. Under Liquid Term Deposit (LTD) scheme, the maximum period of deposit is------ a) One year b) 5 Years c) 7 Year d) 10 Years

11. The minimum amount of Liquid Term Deposit (LTD) is------

a) Rs. 1,500/- b) Rs.10000/- c) Rs.25000/- d) Rs.50,000/-

12. Under LTD Scheme, the partial withdrawal is permitted in units of Rs. ---------

a) Rs.500/- b) Rs.1000/- c) Rs.5000/- d) Rs.10, 000/-

13. Under Liquid Term Deposit (LTD) scheme, the minimum period of deposit is------ a) 15 days b) 6 months c) 1 year d) 7 days

14. Banks are required to deduct tax at source (TDS) from interest payable on Time Deposits wherever such interest paid or accrued per person and per branch during a financial year exceeds --------------

a) Rs.20000 b) Rs.10000 c) Rs.5000 d) Rs.50000


58

15. The minimum amount of deposit under the Kisan Mitra Jama Yojna is

Rs.___________ and in multiples of ___________.

a) Rs. 1,000 and Rs. 100 b) Rs. 1,000 and Rs. 500 c) Rs. 5,000 and Rs. 1,000 d) Rs. 1,500 and Rs. 100

16. The minimum amount of withdrawal under the Kisan Mitra Jama Yojna is stipulated at ______ and in multiple of ________ ..

a) Rs. 100/- and Rs 100/- b) Rs. 500/- and Rs. 100/- c) Rs. 1,000/- and Rs. 500/- d) Rs. 1,500/- and Rs. 100/-

17. The minimum period of deposit under the Kisan Mitra Jama Yojna is:

_______________.

a) 12 months b) 6 months c) 3 months d) 15 days.

18. Under the Kisan Mitra Jama Yojna deposit can be accepted for a maximum period of

_______.

a) 3 years b) 5 years c) 7 years d) 10 years

19. The minimum amount of Corporate Liquid Term Deposit (CLTD) is------

a) Rs.5, 000/- b) Rs.10000/- c) Rs.25000/- d) Rs.50, 000/-

20. Under CLTD Scheme, the minimum amount of deposit allowable subsequent to initial deposit is:

a) Rs. 5000/- b) Rs. 10000/- c) Rs. 25,000/- d) Rs. 50,000/-


Q. 1 2 3 4 5 6 7 8 9 10

Ans. a b c c c c d c d b

Q. 11 12 13 14 15 16 17 18 19 20

Ans. a a c b d b a d d c


59


1) To be eligible for differential rate of interest under Senior Citizen Deposit Scheme,

the minimum age of the depositor is-------- a) 58 years b) 60 years c) 65 years d) none of the above

2) Under Senior Citizen Deposit Scheme, the minimum period of deposit is________. a) 3 months b) 6 months c) 1 year d) 15 days

3) Under Senior Citizen Deposit Scheme, the minimum amount of deposit is_______. a) Rs. 500/- b) Rs. 1,000/- c) Rs. 5,000/- d) Rs. 10,000/-

4) Differential rate of interest under Senior Citizen Deposit Scheme is ---------------- a) 1% b) 0.50% c) 0.25% d) None of the above

5) Which of the following statement is not true in respect of CAPGAIN PLUS Scheme? a) It is a product for parking of capital gains for a max. period of 3 years. b) Funds parked in the account are to be utilised for capital investment. c) All branches are authorised to open accounts under CAPGAIN Scheme. d) None of the above.

6) Under CAPGAIN PLUS Scheme, the minimum amount of deposit which can be held in TDR is a) Rs. 500/- b) Rs. 1,000/- c) Rs. 5,000/- d) Rs. 10,000/-

7) Amount withdrawn under CAPGAIN PLUS Scheme is to be utilised within ----------------days. a) 15 b) 30 c) 60 d) None of the above


60

8) Which of the following facilities are available to the account holder under CAPGAIN PLUS Scheme. a) Cheque Book b) ATM Card c) Loan facility d) None of the above

9) Under CAPGAIN PLUS Scheme withdrawal of amount can be permitted only by way of DD in favour of payee if amount of such withdrawal exceeds Rs. ----------- a) Rs. 5000/- b) Rs. 10,000/- c) Rs. 25,000/- d) Rs. 50,000/-

10) No Frill Account can be opened by an individual if his a) Age is > 10 years b) Age is > 10years & earning is Rs. 5000/- or less c) Age is > 18 years d) Age is > 18 years & earning is Rs. 5000/- or less

11) Initial deposit required to open No Frill Account is Rs. ___________and thereafter minimum balance of Rs. ________ can be maintained. a) Rs 50 & Rs. 100 respectively b) Rs 100 & Rs. 100 respectively c) Rs 50 & Rs. 50 respectively d) Rs 50 & Rs. 0 respectively

12) Maximum balance that can be maintained in the No Frill Account is Rs. ___________ a) Rs 50,000 b) Rs 25,000 c) Rs 10,000 d) Rs 1,00,000

13) Rate of interest payable in No Frill Account is: a) As applicable to Savings Bank account if a minimum balance of Rs.500/- or more

is maintained. b) No interest is to be paid. c) As applicable to Savings Bank account. d) None of the above.


61

14) Which of the following scheme/s have been discontinued from 01-04-2009.

a) Money Box b) Kanak Dhara c) Both of the above d) None of the above

15) Which of the following scheme has been discontinued from 01.06.2011. a) Annuity Deposit Scheme b) Floating Rate Term deposit c) SB Yuva Account d) None of the above


Q. 1 2 3 4 5 6 7 8 9 10

A b c d b d c c d c d

Q 11 12 13 14 15

A d c c c b


62

SALARY PACKAGE ACCOUNTS 1 Corporate Salary Package Account will be available to the employees of a

Corporate or Institution, only when the organisation has:

a) A minimum number of 25 employees with a minimum payout of Rs.1.25 lacs p.m.,

b) A minimum number of 20 employees with a minimum payout of Rs.1.00 lacs p.m.,

c) Minimum gross monthly salary per account of Rs. 5,000/- d) Both (a) & (c) e) Both (b) & (c)

2. PBBU Heads of the Circle have the discretion to permit deviation in eligibility

criteria and approve a tie up with a Corporate/ Institution having minimum number of ___ employees opening their salary accounts with us.

a) 10 b) 15 c) 20 d) No deviation is allowed

3. Circle CGM may permit coverage of employees having salaries of less than

Rs. 5,000 per month under “Silver” variant, provided :

(a) All the salary accounts are maintained with our Bank (b) The employees drawing gross salary of less than Rs.5,000/- should not be

more than 20% of total. (c) The employees drawing gross salary of less than Rs.5,000/- should not be

more than 25% of total. (d) Both (a) & (b) e) Both (a) & (c)

4. The Corporate Salary Package has _______ variants: a) 2 b) 3 c) 4 d) 5 5. SBI Vishesh status is being provided for holders:

a) Platinum Account b) Gold Account c) Diamond Account d) Both (a) & (c)


63

6. Which of the following statement/s is/are correct in respect of Silver variant of Corporate Salary Package Account:

i. Gross Monthly Salary should be between Rs. 5,000/- and Rs. 20,000/-. ii. Free Domestic ATM Card is provided

iii. Unlimited cheque book leaves free in a year except for bulk requirementfor EMIs payable to other banks/FIs

iv. Charges are recovered for Cash Deposit transactions in excess of 3 transactions per month


7. Which of the following statement/s is/are correct in respect of Gold variant of Corporate Salary Package Account:

i. Gross Monthly Salary should be between Rs. 20,000/- and Rs. 50,000/- ii. Free International Gold Debit Card is provided iii. Unlimited cheque book leaves free in a year iv. Charges are recovered for Cash Deposit transactions in excess of 3

transactions per month a) Only (i) b) Both (i) & (ii) c) (i), (ii) & (iii) d) All of the above

8. Which of the following statement/s is/are correct in respect of Diamond variant of

Corporate Salary Package Account:

i. Gross Monthly Salary should be between Rs. 50,000/- and Rs. 1.00 lac. ii. Free International Gold Debit Card is provided iii. Unlimited cheque book leaves free in a year iv. No limit on number of cash deposit transactions.


9. Which of the following statement/s is/are correct in respect of Platinum variant of

Corporate Salary Package Account:

i. Gross Monthly Salary should be more than Rs. 1,00,000/-. ii. Free International Gold Debit Card is provided iii. No limit on the number of Cheques. iv. No limit on number of cash deposit transactions.



64

10. Overdraft facility limited to 2 month’s Net Salary can be provided under

Corporate Salary Package Account to

(a) Platinum Account (b) Silver Account, Gold Account, (c) Silver Account, Gold Account & Diamond Account (d) All the four variants

11. The Defence Salary Package has _______ variants: a) 2 b) 3 c) 4 d) 5 12 Army personnel will be categorised into eligible variants as per their :

a) Ranks b) Salaries c) Ranks and Salaries both d) None of the above.

13 Which of the following statement/s is/are correct in respect of Defence Salary

Package Account?

i. All Army personnel including the Defence Civilian Staff will be eligible to open DSP accounts. Currently however, civilians have been excluded.

ii. The facilities under DSP accounts will be continued even for pension accounts after retirement, provided the officer/ PBOR has had his salary account with us and also draws his pension through us.

iii. The Army numbers to be used in ID First field. iv. The DSP account can be operated as a joint account.


14. Which of the following statement/s is/are correct in respect of Salary Package Account?

a) RTGS/NEFT charges to be recovered as applicable to other accounts. b) RTGS/NEFT charges to be recovered at concessional rates upto Rs. 2 Lacs and

thereafter as applicable to other accounts c) RTGS/NEFT charges waived whilst uploading salary/other credits to employee

accounts through our CINB.


65

15. Which of the following statement/s is/are correct in respect of Platinum variant of Salary Package Account:

i. ATM Issue and Annual Maintenance Fee of Rs. 300/- from second year waived.

ii. Any Number of transactions subject to maximum Rs. 1,00,000/- per day in India (USD $ 2,000 per day – Abroad).

iii. Personal Accident Insurance cover Rs. 5 lacs iv. Personal Accident Insurance cover Rs. 2 lacs

a) Only (I & iv) b) Both (i) & (ii) c) (i), (ii) & (iii) d) Only ( i) & (iii)

16. Which of the following statement/s is/are correct in respect of Salary Package Account:

i.For availing overdraft facility all variants with minimum

residual service of 6 months are eligible for Overdraft up to 2 months Net Monthly Income adjustable from next month’s salary (ies) within a period of 6 months.

ii.For Platinum account holders the application for availing overdraft to be

obtained at the time of opening new accounts.

iii.For availing the facility the account holder of all other variants have to submit an application for overdraft at the time of availing the facility.

iv.All of the above.

KEY SALARY PACKAGE ACCOUNTS

1 2 3 4 5 6 7 8 9 10

d a d c a d c c d d

11 12 13 14 15 16

c a d c c d


66

SBI Gold Deposit scheme & Rupee Loan against gold deposit 1. Who can open Gold Deposit Account?

(i) Individual (Singly or jointly) (ii) Hindu Undivided Family (HUF) (iii) Trust (iv) Company (a) Only (i) (b) (i) ,(ii) & (iii) (c) Both (i) & (ii) (d) All of the above

2. Which of the following statement/s is not correct in respect of joint account under

SBI Gold Deposit scheme?

a) Facility for deposits in two names, as `Former or Survivor', will be available to all categories of depositors.

b) Subsequent addition of a second holder with payment instruction being `Former or Survivor' will also be permitted.

c) The rights of the second holder will automatically lapse, when the first applicant transfers the SBI Gold Deposit Certificate to another person.

d) None of the above 3. Under SBI Gold Deposit nomination facility will be available if the deposit is:

a) In single name in individual capacity b) In Joint names in individual capacity c) To all type of depositors d) Both a & b

4. ____ Branch has been designated as “Nodal Branch” for Gold Deposit Scheme:

d) Mumbai Main Branch e) Overseas Branch, Mumbai f) New Delhi Main Branch g) Nagpur Branch

5. Under SBI Gold Deposit Minimum Quantity of gold that can be deposited is : a) 50 gms (gross) b) 100 gms (gross) c) 500 gms (net) d) 500 gms (gross) 6. Maximum tenor of Deposit under Under SBI Gold Deposit is : a) 3 years b) 5 years c) 7 years d) 10 years


67

7. Which of the following statement/s is not correct in respect of payment of interest

under SBI Gold Deposit scheme?

a) The depositor will have the option of taking interest annually as on 31st March every year (i.e. non-cumulative) or compound it annually for payment at the time of maturity(i.e. cumulative).

b) The interest will be calculated in grams but paid in rupees only. c) Interest will be payable from the date of deposit of gold with the

designated branch. d) None of the above

8. Gold will be accepted in the ___________form.

a) Gold bars & coins b) Scrap c) Jewellery without any stone, gem, etc. d) a) & c)

9. Which of the following statement/s is not correct in respect of repayment/ redemption under SBI Gold Deposit scheme?

i) The depositor will have the option for redemption of the principal on

maturity either in gold or in rupees ii) For redemption in gold, the deposit will be redeemed in gold of 995/999

fineness, in the multiples of 10 gm bars, at the discretion of the Bank. Any fraction quantity in excess of multiple of 10 gm bars will be repaid in rupees only.

iii) In case the repayment in rupees is taken after the date of maturity, the rate applicable on the date of payment will be taken into account.

iv) In case the maturity date is a non-business day in Mumbai, the deposit will be redeemed on the next working day (at the conversion rate of the date of maturity) and no additional interest will be paid for extra day(s).

(a) Only (iv) (b) Only (iii) (c) Both (i) & (ii) (d) None of the above

10. Which of the following statement/s is not correct in respect of Rupee Loan

against gold deposit?

i. Loan can be granted to all depositors under Gold Deposit Scheme. ii. In case of joint holding loan can be granted to all the depositors jointly. iii. Loan can not be given against deposits held on behalf of a minor. iv. Loan can not be given to third parties against deposits held by a Trust/

HUF/ Minor.


68

(a) Only (i) (b) Only (iii) (c) Both (ii) & (iii) (d) None of the above

11. What is the minimum loan amount under Rupee Loan against gold deposit?

a) Rs. 50,000/- b) Rs. 1,00,000/- c) Rs. 5,00,000/- d) Rs. 10,00,000/-

12. What is the maximum loan amount under Rupee Loan against gold deposit

without any administrative clearance?

a) Rs. 500,00,000/- b) Rs. 100,00,000/- c) Rs. 50,00,000/- d) Rs. 10,00,000/-

13. Margin under Rupee Loan against gold deposit is _____ of the principal value of

the Gold Deposit Certificate.

a) 20% b) 25% c) 30% d) 40%. 14. Loan under Rupee Loan against gold deposit may be sanctioned by :

a) Designated branch b) All branches c) Nodal Branch d) Both a) & c)

15. Which of the following statement/s is not correct in respect of Rupee Loan against gold deposit?

a) The loan can be granted for any purpose. b) Maximum period of loan is 36 months. c) The loan can be either in the form of a Demand Loan or an Overdraft. d) None of the above.

KEY SBI Gold Deposit scheme & Rupee Loan against gold deposit

1 2 3 4 5 6 7 8 9 10

d a a b d b c b b c

11 12 13 14 15

b a b b b


69

‘P’ SEGMENT ADVANCES HOME LOANS

ASSIGNMENT – 1 1. Individual(s) over ______ years of age with independent source of regular income

are eligible for finance under Housing Loan Scheme.

a) 18 b) 20 c) 21 d) 25

2 The total project cost of Housing Loan includes:

a) Cost of land, additional amenities b) Insurance premium, charges for purchase c) Stamp duty & registration d) All of above

3. The maximum permissible loan amount under H/L scheme, for an applicant is

linked to _________ a) LTV b) Project cost c) EMI/NMI ratio d) all of the above

4. For determining maximum permissible Housing Loan amount of a customer

having Annual Income upto Rs. 2 lacs, the EMI/NMI ratio should not exceed__________%

a) 30 b) 40 c) 55 d) 25 5. For determining maximum permissible Housing Loan amount of a customer

having Annual Income above Rs. 2 lacs and upto Rs. 5 lacs, the EMI/NMI ratio should not exceed__________%

a) 40 b) 50 c) 55 d) 60 6. For determining maximum permissible Housing Loan amount of a customer

having Annual Income above Rs. 5 lacs and upto Rs10.00lacs, the EMI/NMI ratio should not exceed__________%

a) 40 b) 50 c) 55 d) 60


70

7. The authority for increase in EMI/NMI ratio upto____ vests with controller of

Branch/RACPC, depending on the family size and availability of disposable surplus income.

a) 5% b) 1% c) 2 d) 10%

8. What is the maximum repayment period under HL Scheme for individuals upto

45 years of age?

a) 12 years b) 15 years c) 20 years d) 25 years subject to liquidation of

the loan before the borrower reaches the age of 70 years

9. Maximum no of borrowers should not ordinarily exceed ------- a) 5 b) 3 c) 6 d) no limit

10. In addition to the applicant’s income, Income of spouse/children /parents / siblings may be considered for arriving at maximum loan amount

a) spouse /children b) parents c) siblings d) all of the above

11. HL should be ordinarily repaid by the age of _____years. a) 58 b) 70 c) 60 d) No such limit 12. Fixed rate of interest can be charged if repayment period do not Exceed ___years a) 20 b) 10 c) 5 d) 25

13. The maximum permissible loan amount under H.L. Scheme for repairs or

renovation of house (without obtaining prior administrative clearance of the Network GM), is:__

a) Rs. 5 lakh . b) Rs. 10 lakh c) Rs. 15 lakh d) Rs. 20 lakh


71

14. The maximum permissible loan amount under H.L. Scheme for furnishing and consumer durables is: _____________. a) 10 % of the project cost or Rs. 2 lacs whichever is less. b) 20 % of the project cost or Rs. 3 lacs whichever is less. c) 10 % of the project cost or Rs. 3 lacs whichever is less. d) 10 % of the project cost or Rs. 4 lacs whichever is less.

15. The minimum margin required under H.L. Scheme for house under construction,

for a loan upto Rs 75 lacs , is : __________.

a) 10 % b) 15% c) 20 % d) 25 %

16. The minimum margin required under H.L. Scheme for house under construction,

for a loan above Rs 75 lacs , is : __________.

a) 10 % of project cost b) 25 % of project cost c) 20 % of project cost d) 30 % of project cost

17. Minimum loan amount in case of home loan to businessman is Rs------lac

a) 25 b) 10 c) 30 d) 40

18. Home loan may be sanctioned for reimbursement of investment made by the borrower in housing from own resources during the preceding -------months. a)6 b)10 c)12 d)24

19. While computing maximum eligible loan amount, expected rent accruals from the proposed house/flat being let out (net of taxes, cess etc.) may be reckoned, subject to maximum amount a) equivalent to the applicant’s Net Monthly Income(NMI)/Net Annual Income (NAI). b) equivalent to the amount of annual rent or annual income whichever is lower c) equivalent to the cost of construction d) equivalent to the 50% of annual rent 20. Rental income is not allowed to be considered when giving loan for

a)purchase of house b)construction of house c)purchase of flat

d)purchase of plot


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21. Depreciation is allowed to be added back to compute net annual income in case of

a) all businessmen. b) only those business being run on proprietorship basis which have

obtained loan for the asset on which depreciation is claimed from our bank.

c) those borrowers who have availed any loan from our bankl. d) Salaried employees who are obtaining loan for furniture and furnishings

KEY HOME LOANS ASSIGNMENT – 1

Q. 1 2 3 4 5 6 7 8 9 10

Ans. a d d a b c a d b d

Q. 11 12 13 14 15 16 17 18 19 20 21

Ans. b b b c c b a c a d b


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‘P’ SEGMENT ADVANCES

HOME LOANS & HOME LOANS TO NRIs ASSIGNMENT – 2

1. No. of Co-borrower is ordinarily restricted to maximum______ including spouse

with son/daughter. However AGM(Region/Branch) can relax maximum no of co-borrowers.

a) 1 b) 2 c) 3 d) no such limit

2. The Moratorium period ordinarily available under HL Scheme building upto 7

floors is: ______________

a) 12 months from the date of first disbursement or 2 months after completion, whichever is earlier

b) 18 months from the date of first disbursement or 2 months after completion, whichever is earlier

c) 18 months from the date of first disbursement or 3 months after completion, whichever is earlier

d) 24 months from the date of first disbursement or 2 months after completion, whichever is earlier

3. Under Housing Loan Scheme, no prior administrative clearance is required for

loans upto: ___, if the proposal is strictly within the scheme.

a) Rs. 5 crore b) Rs. 7.5crore c) Rs. 10 crore d) Rs. 15 crore

4. With effect from 1st May 2011 processing fees is to be recovered at the time of a) pre sanction b) initial scrutiny c)Sanctioning d)documentation 5. Capitalisation of pre EMI interest is allowed only if the moratorium period does

not exceed-----months a) 24 b) 36 c) 18 d) 6

6. Under Housing Loan Scheme, prior administrative clearance (from next higher

authority) is required in respect of a loan for purchase of a house which is more than _____ years old.

a) 20 b) 15 c) 10 d) 7


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7. Loan to value ratio in cas of loan above Rs 20.00lac for home under construction should be ---------%

a) 75 b) 60 c) 80 d) 90

8. For Home Loans above Rs.25000/- , if the irregularity exceeds EMI or Installment amount, for a period of one month, then penal interest should be recovered ------------% p.a. (over and above the applicable interest rate) on the overdue amount for the period of default a) 2

b) 1. c) 3 d) 2.5 9. In case son/daughter /sibling /parent’s income is clubbed for arriving at loan amount

repayment has to be made through an account a) in the name of any one of the borrower/ guarantor b) in the name of any one of the borrower only c) in the joint name of all the borrowers and guarantor d) in the name of guarantor only

10. Home loan borrowers can claim Income Tax benefits under section 80C upto Rs. ___________ in respect of principal repayment of Home Loans.

a) 20,000/- b) 30,000/- c) 1,00,000/- d) 1,50,000/-

11. As per RBI guidelines housing loan for construction ,purchase of dwelling unit

upto Rs -----lac shall be eligible for classification under prirority sector a) 10 b) 25 c) 15 d) 20

12. Co borrower/guarantors whose income is being clubbed should normally be

employed ,in profession or be engaged in business for a minimum period of -------years

a) 3 b) 5 c) 1 d) 2

13. To be eligible under Housing Loan Scheme for NRIs / PIO, the NRIs/PIOs should

be earning a minimum NMI equivalent to US$ ________or a NAI equivalent to US$ _____.


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a) 500(NMI) / 6000(NAI) b) 1000(NMI) / 12000(NAI) c) 2000(NMI) / 24000(NAI) d) 2500(NMI) / 30000(NAI)

14. The maximum amount of Housing Loan for NRIs/PIOs is detemined by

a) EMI/NMI of the borrower b) age of the borrowe c) stay of the borrower abroad d) None of the above

15. In case loan amount above Rs 10.00lacs is to be given foe pair and renovation

administrative clearance will be given by -------- a) CGM of circle b) GM of network c) CGM PBBU d) CCCI

16. What is the maximum repayment period under HL Scheme for NRIs/PIOs upto 35 years of age subject to stipulation that the loan should be liquidated by the age of 60 years or by the age of retirement, whichever occurs earlier?


17. What is the maximum repayment period under HL Scheme for NRIs/PIOs above

35 years and upto 45 years of age subject to stipulation that the loan should be liquidated by the age of 60 years or by the age of retirement, whichever occurs earlier?


18. The minimum loan amount of Housing Loan under HL Scheme for NRIs/PIOs is :_________

a) Rs. 1 lac b) Rs. 2 lac c) Rs. 3 lac d) Rs. 5 lac

19. The Maximum Loan amount for repair and renovation by NRI is limited to a) Rs. 10 lac b) Rs. 15 lac c) Rs. 20 lac d) Rs. 25 lac


76

20. The Maximum Loan amount for furnishing and consumer durables under HL Scheme for NRIs/PIOs is :______________

a) 10 % of the project cost or Rs.3 lacs, whichever is lower b) 10 % of the project cost or Rs.5 lacs, whichever is lower c) 15 % of the project cost or Rs.5 lacs, whichever is lower d) 10 % of the project cost with no ceiling.

21. One of the eligibility criteria for NRIs to avail of housing loan is that they should have been employed abroad for at least _______ years and presently holding a valid job contract/work permit and aged above____ years. a) 1 b) 2, 18 c) 2,21 d) 4

22. Maximum period of repayment permotted to an NRI borrower is ------years or date of retirement whichever is earlier.

a) 50 b) 60 c) 75 d) 65

23 The AGM (Region)/(Branch) may permit the repayment of loan upto the age of----- years provided the approving authority is satisfied about the continuity of the income

a)65 b)70 c)72 d)75

Key to Assignment – HOME LOANS 2

Q. 1 2 3 4 5 6 7 8 9 10 11

Ans. c b b d c b c a c c d

Q. 12 13 14 15 16 17 18 19 20 21 22

Ans. c a a b d c c a a b b

Q. 23

Ans. b


77

‘HOME LOAN ASSIGNMENT – 3

YUVA/PAL HOUSING LOAN QUESTIONNAIRE

1.Loan under Yuva housing loan is to be repaid within a fixed term of

a)25yrs b)10 yrs c)20yrs d)15yrs 2.Minimum net monthly income for availing loan under Yuva Home loan is Rs------ a)25000/- b)50000/- c)100000/- d)60000/- 3.Loan under this scheme can be extended to people in the age group between -------and ------ a)18 , 25 b)21, 35 c)30, 40 d)21, 35 4.Under this loan a person can get ------% more than the amount calculated as per the normal EMI/NMI ratio. a) 20 b)15 c)25 d)30 5.Minimum amount for which SBI home loan PAL can be extended is a)Rs30.00lacs b)Rs25.00lacs c)Rs10.00lacs d)Rs20.00lacs 6. SBI home loan PAL can be extended at a)Branch only b)Racpc only c)Either at branch or racpc d)RBO 7.PAL will be valid for --------- a) 3mths b)6mths c)2mths d)12mths 8.One of the following is not true about what is given in Preapproved Loan arrangement letter. a) If the time gap between PLAL and submission of Home Loan application by the customer is more than one month, fresh CIBIL Credit report will be verified by the RACPC. b) Loan amount calculated on the basis of prevailing interest rates will be valid for a period of 1 month.


78

c) Home Loan will have to be availed by the borrower from the same RACPC which has issued the PLAL. d) PLAL will be issued under the signatures of the processing officer. 9.The condition under which age under YUVA Home loan for availing the loan can be extended upto 40 yrs is a) if minimum contribution of each borrower in case of joint borrowing by husband and wife to the combined NMI is 25%. b) if minimum contribution of each borrower in case of joint borrowing by husband and wife to the combined NMI is 30%. c) if minimum contribution of each borrower in case of joint borrowing by husband and wife to the combined NMI is 20%. d) if minimum contribution of each borrower in case of joint borrowing by husband and wife to the combined NMI is 40%. 10.If a borrower availing loan under SBI Yuva housing loan is not getting benefit under Corporate Salary Package he can get benefit of a festival loan equivalent of ---------- months NMI repayable in 36mths a) 2 b)5 c)3 d)6

KEY TO YUVA/PAL HOUSING LOAN QUESTIONNAIRE

1 a 5 c 9 a 2 b 6 b 10 c 3 b 7 c 4 a 8 d


79

HOME LOAN ASSIGNMENT – 4 SBI Home Plus and earnest money loan

1. For which purpose loan under SBI-Home Plus scheme can be granted?

a) expenditure towards major repair, renovation and addition to residential house/flat

b) purchase of furniture and fixture and consumer durables etc. c) education/medical expenses of family, personal expenses etc. d) All of above

2. Home Loan borrowers with a satisfactory repayment record of ____years and

who maintain a C./A or SBA/c are eligible for loan Under SBI Home Plus

a) 1 b) 2 c) 3 d) 4

3. The eligible loan amount under SBI-Home Plus is:

a) Present market value of the house property (-) Margin of 25% on the

property value (-)Present outstanding in the Home Loan account b) Rs. 10 lacs c) Rs. 20 lacs d) Least of a & b

4. What is the minimum and maximum amount eligible under SBI-Home Plus?

a) Rs. 25000/-& 10,00,000/- b) Rs. 15000/-& 2,00,000/- c) Rs. 25000/-& 5,00,000/- d) Rs. 5000/-& 10,00,000/-

5. Under SBI Home Plus, EMI/NMI should not exceed_________%.

a) 50 b) 40 c) 60 d) no such condition

6. Under SBI Home Plus, in case of borrowers with NMI of Rs. 10 lacs and above,

the ratio of EMI/NMI can be relaxed upto____%

a) 40 b) 60 c) 50 d) 70

7. Where equitable mortgage is not extended to cover SBI Home plus, repayment of loan granted under SBI Home Plus is_____ a) 20 years b) 15 years c) 10 years d) Lower of 10 years or residual maturity of existing loan


80

8. The moratorium within the overall repayment period of loan granted under SBI Home Plus can be permitted upto _____months subject to servicing of interest.

a) 3 b) 2

c) 6 d) 12

9. At any point of time no of loans granted under SBI Home Plus will not exceed ----subject to an overall ceiling of Rs. 10,00,000/- .

a) 1 b) 2 c) 3 d) 4

10. Margin in case of loan for earnest money is waived subject to__________ a) Allotment letters / refund orders being routed through SBI b) Lump sum amount equal to 6 month’s interest to be taken upfront

c) both a and b d) Security equivalent to loan amount being provided

11. Minimum monthly income to avail loan under earnest money deposit scheme should be ------

a) Rs5000/- b) Rs10000/- c) Rs6000/- d) No minimum amount

12.. Maximum loan amount that can be given under loan for earnest money is ---------- a) Rs5.00lac b)Rs10.00lac c)Rs20.00lac d)Rs8.00lac 13.The Security under Loan for Earnest Money loan is waived subject to -------- a) Allotment letters / refund orders are routed through SBI. b) Lump sum amount equal to 6 month’s interest is taken upfront. c) 2 PDCs one for the principal amount of EMD and another towards interest for the next 6 months should be taken to meet the eventuality of refund getting .

delayed d) all of the above

Key to Home Loans Assignment – 4

Q. 1 2 3 4 5 6 7 8 9 10

Ans. d a d a c d d d b c

Q. 11 12 13

Ans. d b d


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HOME LOANS ASSIGNMENT –5 1. Loan under SBI Reality is granted for:

a) purchase of house b) construction of house c) purchase of shop d) purchase of plot of land for construction of a house

2. What is the maximum loan amount under SBI Reality? a) Rs.10 cr b) Rs. 50 cr c) Rs.20 cr d) Rs. 1cr 3. Loans above Rs------require prior administrative clearance from AGM

region/branch under SBI realty. a) Rs. 10 lacs b) Rs.50 lacs

c) Rs. 20 lacs d) Rs. 25 lacs 4. For determining maximum permissible loan under SBI Reality a customer having

Annual Income upto Rs. 2 lacs, the EMI/NMI ratio should not exceed__________%

a) 40 b) 30 c) 55 d) 60 5. For determining maximum permissible loan under SBI Reality a customer having

Annual Income above Rs. 2 lacs and upto Rs. 5 lacs, the EMI/NMI ratio should not exceed__________%


Annual Income above Rs. 5 lacs to Rs. 10 lacs the EMI/NMI ratio should not exceed__________%


Annual Income above Rs. 10 lacs the EMI/NMI ratio should not exceed__________%

a) 40 b) 45 c) 55 d) 50


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8. Maximum time period stipulated for construction of house under SBI realty

scheme is______, from the date of availment of loan.


9. For loans above Rs50.00lacs property valuation should be done by ------

empanalled valuers and ------of the assessments should be considered for loan amount.

a) 2 , higher b) 3, higher c) 3, lower d) 2, lower

10. The maximum repayment period under SBI Realty Scheme is

_____________from the month following the month of disbursement of the loan.


11. Loan under SBI realty .can be granted as

a) term loan b) overdraft c) either a) or b) d) neither 12. For loans above Rs 50.00lacs -----title reports ahould be taken a) 4

b) 1 c) 3 d) 2

13. The maximum limit under SBI Maxgain housing loan is : a) Rs. 100.00 lacs b) Rs. 30.00 lacs c) Rs. 50.00 lacs d) No upper limit

14. Which type of credit facility can be granted under SBI Maxgain?

a) Cash Credit b) Overdraft c) Clean OD d) Term Loan


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15. Drawing power under SBI Maxgain is reduced on a -------basis a)daily b)quarterly c) yearly d)monthly 16. For being eligible under SBI Maxgain Housing loan scheme, the minimum loan

amount should be ___________.

a) Rs. 2,00,000/- b) Rs. 5,00,000/- c) Rs. 3,00,000/- d) Rs. 10,00,000/-

17. For being eligible under SBI Maxgain, existing/prospective customer should have minimum balance of Rs._______ in their SB/Current Account

a) Rs. 10,000/- b) Rs. 5000/- c) Rs. 2000/- d) Rs. 1000/-

18. The criteria of minimum balance in SB/Current account for being eligible for SBI

Maxgain can be relaxed, if the customer is having______acccount with us. a) Cash Credit account b) Overdraft account c) Term Loan account d) Salary account

19. Cheque book/ ATM cum Debit Card and Internet Banking facility shall be

provided to the SBI Maxgain housing loan borrower ___________and completion of required formalities

a) At the time of opening the A/C b) On completion of the house c) After full disbursement of loan d) 6 months after the sanction of loan

Key to Advances Home Loans Assignment – 5

Q. 1 2 3 4 5 6 7 8 9 10 11

Ans. d a b b a b d a d b c

Q. 12 13 14 15 16 17 18 19

Ans. d a b d b b d c


84

HOME LOANS ASSIGNMENT - 6

1 To be eligible for a loan under ‘SBI-Tribal Plus’ Home Loans, the age of the

applicant should be over ---- and not more than ------- a) 21- 55 years b) 21- 60 years c) 18- 65 years d) 21-65 years

2 The margin required under ‘SBI-Tribal Plus’ Home Loans Scheme, for

construction/purchase of a new/existing house/flat, is:__________

a) 5% b) 10 % c) 15% d) 20%

3 The margin required under ‘SBI-Tribal Plus’ Home Loans Scheme, for

repairs/renovation of (or additions to) an existing house/flat is:__________

a) 10% b) 15 % c) 20% d) 25%

4. For salaried borrowers, the total repayment period under ‘SBI-Tribal Plus’ Home

Loans Scheme, should not exceed ______ years or the remaining period of their service whichever is less.

a) 10 b) 12 c) 15 d) 20

5. For borrower other than salaried class, the total repayment period available

under ‘SBI-Tribal Plus’ Home Loans Scheme is subject to liquidation of loan before the borrower attains _______ years of age.

a) 60 b) 65 c) 70 d) 72 6. Under ‘SBI-Tribal Plus’ Scheme, permanent employees of Central or State

Government / PSUs / reputed Private Sector undertakings / professionals, self-employed, businessmen and agriculturists etc. with a minimum of ______ years service / experience (in their respective fields) fall under the eligibility criteria.

a) 5 b) 4 c) 3 d) 2


85

7. The amount of loan available under ‘SBI-Tribal Plus’ Scheme, is : 36 times NMI for employees / 2 times average NAI for the last 3 years for others, subject to a maximum amount of Rs. _______ lacs.

a) 5 b) 10 c) 15 d) 20 8. Under ‘SBI-Tribal Plus’ Scheme, for salaried borrowers, the aggregate value of

liquid securities (Bank’s TDRs, LIC/SBI Life/other insurers endowment policies, NSCs, KVPs, gold ornaments etc.) should not be less than ______% of the loan amount

a) 25 b) 30

c) 40 d) 50 9. Under ‘SBI-Tribal Plus’ Scheme, for professionals, self-employed, businessmen

or agriculturists borrowers, the aggregate value of liquid securities (Bank’s TDRs, LIC/SBI Life/other insurers endowment policies, NSCs, KVPs, gold ornaments etc.) should not be less than ______% of the loan amount

a) 30 b) 40 c) 50 d) 60 10. As Mortgage of land is not available under Tribal Plus, what will be taken as

security?

a) 3rd party guarantee of another employee(s) employed with Govt./PSU/reputed Private Sector Undertaking b) Group guarantee of 3- 4 employees who are working in the same organization

and whose salaries are being routed through the bank on the basis of irrevocable letter of authority.

c) in case of loan to professional, self-employed, guarantor(s) networth should be equal to or more than the loan amount.

d) any of the above

11. ‘Gram Niwas’ Scheme is applicable in all rural and semi-urban centres. ‘Rural Area’ for the purpose of the Scheme is the area comprised in any village including the area comprised in any town, the population of which does not exceed ________ as per 2001 census.

a) 10,000 b) 12,000 c) 20,000 d) 50,000


86

12. Which type of facility can be granted under ‘Gram Niwas Scheme?

a) Term Loan b) Overdraft c) Clean Overdraft d) a or b

13. The maximum loan amount available under ‘Gram Niwas’ Scheme, for

construction is Rs.___________ a) 1,00,000/- b) 2,00,000/- c) 3,00,000/- d) 5,00,000/-

14. The maximum loan amount available under ‘Gram Niwas’ Housing Loan

Scheme, for repairs/renovation of house, is:___________ a) Rs. 50,000/- b) Rs. 75,000/- c) Rs. 1,00,000/- d) Rs. 2,00,000/- 15. The maximum loan amount available under ‘Gram Niwas’ Housing Loan Scheme,

for purchase of land is:___________ a) Rs. 50,000/- b) Rs. 75,000/- c) Rs. 1,00,000/- d) Rs. 2,00,000/- 16. The margin required under ‘Gram Niwas’ Scheme for loan upto Rs. 50,000/-

is___________


17. The margin required under ‘Gram Niwas’ Scheme for loan above Rs. 50,000/- and upto Rs. 5.00 lac is___________


18. Age criteria under ‘Gram Niwas’ Scheme is:

a) 18 to 60 years b) 21 to 60 years c) 21 to 65 years d) 18 to 50 years

19. Under Gram Niwas maximum EMI/NMI ratio where average annual income is above Rs5.00lacs is ----

a) 60% b) 75% c) 55% d) 50%


87

20. The maximum repayment period available under ‘Gram Niwas’ Scheme, as well

as under ‘Sahyog Niwas’ Scheme, is: ____________ .


21. Sahyog Niwas Scheme relates to---------------- a) Financing SHG for on lending to members for housing in rural areas. b) People residing in same village cooperate each other. c) Scheme for financing rural people for construction of houses. d) None of the above

22. Sahyog Niwas Scheme is operational in----------------

a) In rural and semi urban areas where SHGs are operating. b) In urban areas . c) Both a & b. d) None of the above

23. For being eligible under “Sahayog Niwas’ Scheme, SHGs should be in existence,

with good track record of payment, for ____________.

a) 6 months. b) 1 year c) 2 years d) 3years

24. The maximum amount of housing loan under “Sahyog Niwas” Scheme, is

______________( including the loan outstanding in the limits already sanctioned to SHGs).

a) 4 times the saving of the corpus of SHG b) 5 times the saving of the corpus of SHG c) 8 times the saving of the corpus of SHG d) 10 times the saving of the corpus of SHG

25. Under “Sahyog Niwas’ Scheme, after the disbursement of loan, SHG will on lend to its members for housing subject to a maximum of Rs._________ per member for purchase/construction of house OR Rs._________ for repairs / renovations / purchase of plot.

a) 50,000/-, 25,000/- b) 75,000/-, 40,000/- c) 1,00,000/-, 50,000/- d) 2,00,000/-, 1,00,000/-

26. Under “Sahyog Niwas’ Scheme, SHGs should not charge to its members more

than _______% of interest rate charged by the Bank. a) 2 b) 3 c) 4 d) 5


88

Key to Assignment HOME LOANS ASSIGNMENT –6

Q. 1 2 3 4 5 6 7 8 9

Ans. b c c c b a b b c

Q. 10 11 12 13 14 15 16 17 18

Ans. d d d d d c b c d

Q 19 20 21 22 23 24 25 26

Ans. a c a a c d a b


89

CAR LOAN

1. Minimum income criteria to be eligible under SBI Car Loan Scheme is?

a) Net annual income should be at least Rs. 75,000/ b) Net annual income should be at least Rs. 50,000/- c) Net annual income should be at least Rs. 100,000/- d) Net annual income should be at least Rs. 60,000/

2. The Minimum and Maximum age criteria for sanction of loan under SBI Car Loan scheme is:

a) 18-60 years b) 21-45 years c) 21-65 years d) 21-60 years

3. Under SBI Car Loan Scheme, the maximum loan amount that can be granted to salaried persons would be restricted to ________ times the net monthly income.

a) 36 b) 30 c) 24 d) 18

4. Under SBI Car Loan Scheme, the maximum loan amount that can be granted to professionals, self employed, agriculturists etc., would be restricted to ______ times the net annual income.

a) 1.5 b) 2 c) 2.5 d) 3

5. What is the maximum loan amount under SBI Car Loan Scheme for purchase of new Vehicle? a) Rs. 15 lacs b) Rs. 10 lacs c) Rs. 50 lacs d) No upper ceiling

6. Under SBI Car Loan Scheme, EMI should not exceed ______ of Net Monthly

Income. a) 50% b) 60% c) 57.50% d) 40% 7. Under SBI Car Loan Scheme EMI/NMI may be relaxed upto ___by sanctioning

authority officer not below the rank of AGM in case of customer with NMI of Rs. 10 lac and above

a) 50% b) 60% c) 57.50% d) 70%


90

8. The margin required under SBI Car Loan Scheme is _______% of ‘on road’ price.

a) 5 b) 15 c) 10 d) 20 9. Cost of accessories not to exceed ___% of cost of vehicle or Rs.________,

whichever is less. a) 10, 10,000/- b) 5, 25,000/- c) 15, 20,000/- d) 25, 25,000/- 10. Under SBI Car Loan Scheme, when the income of spouse or son/daughter is

clubbed with the borrower he is made ______ a) Guarantor b) borrower c) Co-borrower d) there is no such requirement

11. Under SBI Car Loan Scheme, loans up to Rs. __________ may be granted on

fixed interest rate basis. a) 3 lac b) 5 lac

c) 10 lac d) loan on fixed rate of interest basis is not granted.

12. A Car loan granted to an individual for purchase of new & old should be repaid within --------years

a) 8 b) 7 c) 6

d) 5

13. The repayment cycle of SBI Car Loan Scheme for loans disbursed on or before 15th of the month and on or after 16th of the month the repayment date should be fixed as _____&______of the following month respectively.

a) 5th, 20th b) 10th, 30th c) 10th, 20th d) no such stipulation 14. Penal interest @________ is charged when the Car Loan account is irregular

beyond 30 days for any reason.

a) @ 2 % p.a. on the entire loan outstanding for a default period. b) @1% per month or 12% p.a on the irregular portion of loan c) @ 2 % p.a. on the irregular portion of loan. d) No penal interest is charged.


91

15. Prepayment penalty is levied @__________under SBI advantage Car Loan

Scheme.

a) 1 % of the amount prepaid. b) 1.5% of the amount prepaid. c) nil d) 2% of the amount prepaid if the loan is taken over by other bank, or if the

amount is repaid before expiry of half of the agreed tenure of loan, or if there is partial repayment during the 1st year.

16. Maximum number of co borrowers in case of car loan can be----- a) 3 b) 2

c) 5 d) 4 17. Car loan should be repaid before the age of ---- a) 70 b) 65

c) 75 d) 60.

18. Vehicle to be finanaced under under Car loan Scheme for used vehicle should not be more than ------years old? a)2 years b) 4 years c) 5 years d) 7 years

19. What is the maximum loan available under Car loan Scheme for used vehicle?

a) Rs.10 lacs b) Rs.20 lacs c) Rs.15 lacs d) No limit

20. The garage from which the valuation certificate is to be obtained should be

authorized by --------- in big cities a) GM of network b) Liasion officer at LHO/ZO

c) AGM RACPC d) DGM CPPC

Key to Assignment – CAR LOAN

Q. 1 2 3 4 5 6 7 8 9 10 11

Ans. c c b c d a d b b c d

Q 12 13 14 15 16 17 18 19 20

Ans. b c a c b a c c b


92

CAR LOAN-II 1. Under Car Loan Scheme, reimbursement of the cost of unencumbered vehicle

up to ______ years of age can be given under the takeover norms and other terms of financing old vehicles.

a) 5 b) 4 c) 3 d) 2

2. What is the quantum of service charge payable to the Car dealer for business of up to 10 car loans (or loan amount up to Rs. 30 lacs) sourced by them during a month? a). 75% of loan amount b) 1.00% of loan amount c) 1. 25% of loan amount d) 1. 50% of loan amount

3. One of the following is not true in respect of takeover of car loans a)the vehicle is not more than 2 years old (b) it is a single ownership vehicle and no insurance claim has been availed (c) Car should be either of Maruti, Tata or Honda

(d) the account of the borrower with the other bank is a Standard Asset 4. What is the quantum of service charge payable to the Car dealer for business of

more than 25 car loans (or loan amount above Rs. 60 lac) sourced by them during a month? a) 0.75% of loan amount b) 1.00% of loan amount c) 1. 25% of loan amount d) 1. 50% of loan amount

5. In case of used vehicle maximum repayment period for self employed and professionals is -------years

a)6 b)5 c)7 d)4

6. What will be the repayment period of a loan granted for purchase of a used vehicle?

a) 3 years b) 5 years c) 7 years d) The loan will be repaid within 7 years from the date of original purchase.


93

7. Which account is debited for payment of service charges payable to a Car loan dealer?

a) Charges Account Miscellaneous b) Interest Account

c) Commission Account d) Branch Clg. Gen A/C-RBO 8. What is minimum amount for availing Car Loan as Overdraft facility? a)Rs. 3 lacs b) Rs. 2 lacs c)Rs. 7 lacs d) Rs. 10 lacs 9. If Car Loan is granted as Overdraft facility, the rate of interest charged will

be ____bps higher than normal car loans. a)25 b) 75 c)100 d) 50 10. To be eligible under NRI- Car Loan Scheme, the borrower & Guarantor

should be between ____&____year of age. a)18, 60 b) 21, 65 c)21, 60 d) 21, 70 11. What are eligibility criteria for Resident Indian borrower under NRI-Car Loan

Scheme?

a) An individual/agriculturist/professional or self employed/ student etc or doing business with economic activity

b) A parent of the NRI/PIO receiving pension or inward remittance at regular intervals.

c) Physically fit with a driving license or in a position to engage a driver. d) The borrower is to be related to NRI/PIO who extends his guarantee to

loan. e) All of above

12. What are eligibility criteria for Guarantor under NRI-Car Loan Scheme?

a) Having valid Indian passport & steady source of Income b) Employed abroad for at least 2 yrs & holding a valid job contract/work

permit c) Having NRI account with SBI for at least 12 months with min. average

balance of Rs. 50,000/- or New Account with USD 5000/- or equivalent. d) All of the above

13. Car loan for NRI should be repaid before the guarantor reaches the age of-

a)70 b)60 c)72 d)65


94

14. What should be the minimum NMI of the Guarantor under NRI Car Loan

Scheme? a) US$ 500 b) US$ 1000 c) US$ 1200 d) No restriction 15. What is the maximum loan amount, which can be granted under NRI-Car Loan

Scheme for new cars?

a) 18 time NMI / 1.5 time NAI of Guarantor b) 15 time NMI / 2.5 time NAI of Guarantor c) 10 time NMI / 1.5 time NAI of Guarantor d) No ceiling

16. What is the maximum repayment tenure under NRI- Car Loan Scheme a) 7 years b) 9 years c) 5 years d) 3 years 17. What is the mode of repayment of EMI under NRI- Car Loan Scheme

a) Remittance from abroad through normal banking channels b) Out of funds in NRE/FCNR/NRO accounts c) Out of local fund by close relatives of NRI Guarantor d) Any of above

18. Under NRI-Car Loan Scheme, KYC norms of ________will be done a) Borrower b) Guarantor c) Both a & b d) No such requirement 19. EMI/NMI ratio under this loan should not exceed------% a) 55 b) 65 c) 70 d) 50 20. NRI should be related to the Resident Indian who is the borrower to stand as

_________for the loan. a) Guarantee b) Surety c) Co-borrower d) None of the above


95

Key to Assignment CAR LOAN -II

Q. 1 2 3 4 5 6 7 8 9 10

Ans. d b c d b d b a d b

Q. 11 12 13 14 15 16 17 18 19 20

Ans. e d d b d a d c d a


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SBI ADVANTAGE CAR LOAN

1. The minimum income criteria to be eligible under SBI Advantage Car Loan Scheme is:

a) Net annual income should be at least Rs. 3,00,000/ b) Net annual income should be at least Rs. 1,50,000/-

c) Net annual income should be at least Rs. 2,50,000/- d) Net annual income should be at least Rs. 2,00,000/

2. The Minimum and Maximum age criteria for borrowers to be eligible under SBI Advantage Car Loan scheme is:


3. Under SBI Advantage Car Loan Scheme, the maximum loan amount that can be granted to salaried persons would be restricted to ________ times the net monthly income.

a) 36 b) 48 c) 24 d) 30

4. Under SBI Advantage Car Loan Scheme, the maximum loan amount that can be granted to those other than salaried is be restricted to ______ times the net profit/Gross taxable income after netting of depreciation and repayment of all loans

a) 2.5 b) 2 c) 4 d) 3

5. Under SBI Advantage Car Loan Scheme, EMI should not exceed ______ of Net

Monthly Income for those with NAI of Rs 5.00lac a) 50% b) 60% c) 57.50% d) 40%

6. Under SBI Advantage Car Loan Scheme, EMI should not exceed ______ of Net Monthly Income. for those with NAI above Rs5.00lac and upto Rs10.00lac.

a) 50% b) 60% c) 57.50% d) 40%

7. Under SBI Advantage Car Loan Scheme, EMI should not exceed ______ of Net Monthly Income. for those with NAI above Rs10.00lac .

a) 50% b) 60% c) 57.50% d) 70%


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8. The margin required for purchase of car under SBI Advantage Car Loan Scheme

is _______% of ‘on road’ price. a) 5 b) 15 c) 10 d) 20 9. Accessories and cost of accessories not to exceed ___% of cost of vehicle or

Rs.________, whichever is less. a) 10, 10,000/- respectively b) 5, 25,000/- respectively c) 15, 20,000/- respectively d) 25, 25,000/- respectively 10. Under SBI Advantage Car Loan Scheme, when the income of spouse is clubbed

with the borrower he/she is made ______ a) guarantor b) borrower c) co-borrower d) there is no such requirement

11. Under SBI Advantage Car Loan Scheme, loans up to Rs. __________ may be

granted on fixed interest rate basis. a) 3 lac b) 5 lac

c) 10 lac d) loan on fixed rate of interest basis is not granted.

12. A SBI Advantage Car loan should be repaid within ------years

a) 7 b) 6 c) 8

d) 5

13. The repayment cycle of SBI Advantage Car Loan Scheme for loans disbursed on or before 15th of the month and on or after 16th of the month the repayment date should be fixed as _____&______of the following month respectively.

a) 5th, 20th b) 10th, 30th c) 10th, 20th d) no such stipulation 14. Margin on loan under SBI Advantage is --------%

a) 15 b) 20 c) 18 d) 25

.

15. Prepayment penalty is levied @__________under SBI Advantage Car Loan Scheme.


98

a. 1 % of the amount prepaid. b. nil c. 2 % of the amount prepaid, irrespective of the time of prepayment. d. 2% of the amount prepaid if the loan is taken over by other bank, or if the

amount is repaid before expiry of half of the agreed tenure of loan, or if there is partial repayment during the 1st year.

16. What is the minimum loan available under SBI Advantage Car loan Scheme?

a) Rs. 2 lacs b) Rs.10 lacs c) Rs. 5 lacs d) Rs.1 lac

Key to Assignment SBI ADVANTAGE CAR LOAN

Q. 1 2 3 4 5 6 7 8 9 10 11 12 13

Ans. c c b c a b d b b c d a c

Q 14 15 16

Ans. a b c


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EDUCATION LOAN 1. Maximum loan available to a student for studies in India under “SBI Student

Loan” is:_______

a) Rs. 7.5 lac b) Rs. 10 lac c) Rs. 15 lac d) Rs. 20 lac

2. Maximum loan available to a student for studies abroad under “SBI Student

Loan” is: _______

a) Rs. 10 lac b) Rs. 15 lac c) Rs. 20 lac d) Rs. 25 lac

3. Minimum margin required for loans up to Rs. 4 lac under “SBI Student Loan” is:

___________ a) 15 % b) 10 % c) 5 % d) NIL

4. Minimum margin required for loans above Rs. 4 lac for studies in India under

“SBI Student Loan” is : ___________

a) 15 % b) 10 % c) 5 % d) NIL

5. Minimum margin required for loans above Rs. 4 lac for studies abroad under “SBI

Student Loan” is : ___________

a) 15 % b) 10 % c) 5 % d) NIL

6. Under “SBI Student Loan”, repayment of loan will commence from ____________________________________ , whichever is earlier.

a) 6 months after completion of course or 6 months after securing a job b) 6 months after completion of course or 3 months after securing a job c) One year after completion of course or 3 months after securing a job d) Course period + 1 year, or 6 months after getting job

7. Under “SBI Student Loan” the repayment period (after commencement of repayment) allowable for loans granted for studies in India is: ___________.

a) 5 years only b) 5 to 7 years c) 5 to 10 years d) 3 to 7 years


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8. Under “SBI Student Loan” the repayment period (after commencement of repayment) allowable for loans granted for studies abroad is: ___________. a) 7 years only b) 5 to 15years c) 5 to 10 years d) 5 to 7 years

9. Under “SBI Student Loan”, for loan amount up to Rs. 4 lac granted for studies in

India as well as for studies abroad, the security to be obtained is

a) No security. b) Suitable Third Party Guarantee c) Tangible Collateral Security of suitable value or Third Party Guarantee

with assignment of future income of the student for payment of installments

d) Tangible Collateral Security for full value of loan

10. Under “SBI Student Loan”, for loan amount above Rs. 4 lacs and upto Rs. 7.5 lacs granted for studies in India as well as for studies abroad, the security to be obtained is:

a) No security. b) Collateral in the form of a suitable Third Party Guarantee c) Tangible Collateral Security of suitable value or Third Party Guarantee

with assignment of future income of the student for payment of installments

d) Tangible Collateral Security for full value of loan

11. Under “SBI Student Loan”, for loan amount above Rs. 7.5 lacs granted for studies in India, the security to be obtained is:

a) No security. b) Third Party Guarantee c) Tangible collateral security of suitable value, along with the assignment of

future income of the student for payment of instalments d) Tangible Collateral security for full value of loan

12. As per Reserve Bank of India guidelines, education loans up to the ceilings of _____________are reckoned under priority sector advances.

a) Rs. 10 lacs for studies in India b) Rs. 20 lacs for studies abroad, c) Rs. 10 lacs for studies in India & abroad d) Both (a) & (b)


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13. If the student is not able to complete the course within the scheduled time,

extension of time for completion of course may be permitted for a maximum period of _______ years.

a) 1 year b) 2 year c) 3 year d) No extension is permitted

14. Under “SBI Student Loan”, penal interest @ ________will be charged for overdue amount and overdue period if amount of loan is above Rs. 4 lacs.

a) 1 % b) 1.5 % c) 2 % d) Nil

15. Under “SBI Student Loan”, concession of ______ % in interest rate is allowed if full interest is serviced during the moratorium period.

a) 0.5 b) 1 c) 1.5 d) No concession is allowed

16. Under “SBI Student Loan”, processing fee is charged @ _____ of the loan

amount.

a) Nil b) 0.25 % c) For loan upto Rs. 4 lac – Nil, for loan above Rs, 4 lac – 0.55 % d) For loan upto Rs. 4 lac – Nil, for loan above Rs, 4 lac – 1.10 %

17. Under “SBI Student Loan”, how many wards of a parent/guardian can be covered

a) 1 b) 2 c) Family to be taken as unit d) No such limit

18. What is/are the conditions to sanction second loan (Top up Loan) under “SBI

Student Loan”?

a) Second loan within the overall limit b) Provided projected income of the student, after placement, is sufficient to

cover full loan repayment c) Second loan being allowed with the security requirements as applicable to

the aggregate limit d) All of the above


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19. How will you react, if student approach for additional loan due to enhancement in fees?

a) The request cannot be entertained b) The request will be permitted on case-to-case basis c) The request will be permitted on case-to case basis in the context of

various ceilings for the security related issues. d) None of the above

20. The maximum loan amount available under “SBI Scholar Loan” scheme

is______

a) Rs. 7.5 lac b) Rs. 10 lac c) Rs.15 lac d) Rs.20 lac

21. The minimum margin required for a loan above Rs. 4 lac under “SBI Scholar Loan” scheme is:___________

a) NIL b) 5 % c) 10 % d) 15 %

22. Under “SBI Scholar Loan”, the security to be obtained is:

a) No security. b) Suitable Third Party Guarantee c) Tangible Collateral Security of suitable value or Third Party Guarantee

with assignment of future income of the student for payment of installments d) Tangible Collateral Security for full value of loan

23. Under “SBI Scholar Loan”, the repayment period (after commencement of repayment i.e after the moratorium) allowable is: ___________.

a) 5 years b) 5 – 7 years c) 5 – 10 years d) 7 years

24. Under “SBI Scholar Loan”, extension of time for completion of course (for ascertaining the moratorium period / commencement of repayment period) may be permitted for max. period of _______ years if student is not able to complete course within scheduled time,

a) 1 years b) 2 years c) 3 d) No extension is permitted


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25. SBI Scholar Loan is sanctioned by ______branches

a) Rural b) Urban c) Select list of branches d) Bank can authorize branches at other centers in addition to select list of

branches

26. An interest rate concession of __________is given to girl students

a) NIL b) 0.50 % c) 0.10 % d) 1.00 %

27. An interest rate concession is given to girl students availing education loans

under a) SBI Student Loans b) SBI Scholar Loan c) SBI Student Loan to Staff / Ward of Staff d) All of the above. 28. Disposal of loan application (time norm) and finance ministry guidelines on disposal of loan applications are as under: a) 7 days, but not exceeding the time norms stipulated for disposing of loan applications under priority sector lending. b) No application for educational loan received should be rejected without the concurrence of the next higher authority. c) Both of the above d) None of the above. 29. Loan for Pilot Training Courses are covered in:

a) SBI Career Loan Scheme b) SBI Student Loan Scheme c) SBI Scholar Loan Scheme d) Both (a) & (b)

30. In SBI Student Loan Scheme the moratorium has been extended from the

current 12 months to 24 months in genuine cases. In SBI Scholar Loan Scheme the moratorium has been extended from the current 6 months to __________ months.

a) 12 months b) 18 months c) 24 months d) Not extended


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31. Under Interest Subsidy scheme on Education Loan for economically weaker section, following is applicable: a) Applicable to those students with annual gross parental/family income upto Rs.4.5 lacs per year (from all sources). b) The interest subsidy available only once either for the first undergraduate degree course or the post graduate degree/diploma in India. c) Nodal Bank for the Ministry of Human Resources Development for implementation of the scheme is Canara Bank . d) Maximum loan amount is Rs. 10 lacs. e) All of the above.

Key to Assignment EDUCATION LOAN

Q. 1 2 3 4 5 6 7 8 9 10 11

Ans. b c d c a d b d a b c

Q. 12 13 14 15 16 17 18 19 20 21 22

Ans. d b c b a d d c c b a

Q. 23 24 25 26 27 28 29 30 31

Ans. b b d b d c b d e


105

‘P’ SEGMENT ADVANCES ASSIGNMENT PENSION LOANS

1. SBI loan to the pensioners is available to all pensioners drawing pension from

our branches aged __________ years or less.

a) 65 b) 70 c) 72 d) No age bar.

2. The ceiling for amount of loan for pensioners under “SBI loan to pensioners” is:

_______

a) Maximum 12 months’ pension with a ceiling of Rs. 50,000/- b) Maximum 12 months’ pension with a ceiling of Rs. 60,000/- c) Maximum 12 months’ pension with a ceiling of Rs. 75,000/- d) Maximum 12 months’ pension with a ceiling of Rs. 100,000/-.

3. The ceiling for amount of loan for ‘Family Pensioners’ under “SBI loan to pensioners” is:_______

a) Maximum 9 times the family pension with a ceiling of Rs. 50,000/- b) Maximum 9 times the family pension with a ceiling of Rs. 75,000/- c) Maximum 12 times the family pension with a ceiling of Rs.75,000/- d) Maximum 12 times the family pension with a ceiling of Rs. 100,000/-.

4. Under “SBI loan to pensioners”, the age of the family pensioner should not exceed ________ years, for eligibility under the scheme.

a) 62 b) 65 c) 70 d) 72

5. Under “SBI loan to pensioners”, for pensioners of age up to 70 years, the

repayment is restricted to:__________ EMIs

a) 36 b) 48 c) 60 d) 72

6. Under “SBI loan to pensioners”, for pensioners of age above 70 years and up to

72 years, the repayment is restricted to:__________ EMIs

a) 36 b) 48 c) 60 d) 72


106

7. Jai Jawan Pension Loan Scheme has been launched to meet the personal expenses of young Defence Pensioners up to the age of _______years.

a) 60 b) 50 c) 65 d) 55

8. The eligible loan amount under Jai Jawan Pension Loan Scheme is ________

a) 45 times net monthly pension subject to maximum Rs. 1 lac b) 50 times net monthly pension subject to maximum Rs. 2 lac c) 48 times net monthly pension subject to maximum Rs. 2 lac d) None of the above

9. The maximum repayment period under Jai Jawan Pension Loan Scheme

is________ a) 60 months b) 48 months c) 45 months d) 84 months 10. No guarantee is required to be taken in case loan granted under Jai Jawan

Pension Loan Scheme is below Rs. ________ a) 50,000/- b) 25,000/- c) 15,000/- d) 20,000/- 11. Under Jai Jawan Pension Loan Scheme, EMI/NMI ratio should not exceed?

a) 50%. b) 40%. c) 60%. d) 45%.

12 SBI Loan to Affluent Pensioners Scheme is available to all Govt. / SBI

pensioners drawing pension from our branches aged __________ years or less.

a) 65 b) 70 c) 72 d) No age bar.

13. The ceiling for amount of loan for pensioners under “SBI Loan to Affluent

Pensioners Scheme” is: _______

a) Maximum 12 months’ pension with a ceiling of Rs. 1,50,000/- b) Maximum 12 months’ pension with a ceiling of Rs. 2,00,000/- c) Maximum 12 months’ pension with a ceiling of Rs. 3,00,000/- d) Maximum 12 months’ pension with a ceiling of Rs. 100,000/-.


107

14. The ceiling for amount of loan for ‘Family Pensioners’ under “SBI Loan to Affluent

Pensioners” is:_______

a) Maximum 9 months’ family pension with a ceiling of Rs. 1,50,000/- b) Maximum 9 months’ family pension with a ceiling of Rs. 2,00,000/- c) Maximum 12 months’ family pension with a ceiling of Rs. 1,50,000/- d) Maximum 12 months’ family pension with a ceiling of Rs. 100,000/-

15. Under “SBI Loan to Affluent Pensioners”, the age of the family pensioner should not exceed ________ years, for eligibility under the scheme.

a) 62 b) 65 c) 70 d) 72

16. Under “SBI Loan to Affluent Pensioners”, for pensioners of age up to 70 years,

the repayment is restricted to:__________ EMIs

a) 36 b) 48 c) 60 d) 72

17. Under “SBI Loan to Affluent Pensioners”, for pensioners of age above 70 years

and up to 72 years, the repayment is restricted to:__________ EMIs

a) 36 b) 24 c) 60 d) 72

18. Under “SBI Loan to Affluent Pensioners”, EMI should not be more than _______of the net pension drawn by the family pensioner.

a) 50%. b) 40%. c) 25%. d) 45%.

Key to Assignment

PENSION LOANS

Q. 1 2 3 4 5 6 7 8 9 10

Ans. C d a b c b b c d b

Q. 11 12 13 14 15 16 17 18

Ans b c c a b a b c


108

‘P’ SEGMENT ADVANCES ASSIGNMENT

PERSONAL LOANS

1. What should be the minimum net monthly income (NMI) of an employee to be

eligible for a loan under “Festival Loan Scheme for Public”?

a) Rs. 2,500/- b) Rs. 3,000/- c) Rs. 4,000/- d) Rs. 5,000/-

2. The minimum amount of loan available under “Festival Loan Scheme for Public”

is Rs.___________

a) 3,000/- b) 4,000/- c) 5,000/- d) 10,000/-

3. The maximum amount of loan under “Festival Loan Scheme for Public” is generally restricted to: ________________.

a) 2 times NMI, maximum Rs. 20,000/- b) 5 times NMI, maximum Rs. 30,000/- c) 8 times NMI, maximum Rs. 40,000/- d) 4 times NMI, maximum Rs. 50,000/-

4. Under “Festival Loan Scheme for Public”, loan upto Rs. ____________(restricted

to 4 times NMI) can be granted to employees with check off facility or well established self employed individuals whose dealings with us have been satisfactory in the past. a) 60,000/ b) 70,000/- c) 75,000/- d) 1,00,000/-

5. The loan under “Festival Loan Scheme for Public” should be repaid within a

maximum period of __________ months.

a) 10 months b) 12 months c) 15 months d) 18 months

6. Under “Festival Loan Scheme for Public”, the processing fee will be charged @

__________.

a) 1.10 % of the loan amount b) 1.00 % of the loan amount c) 0.55 % of the loan amount d) Rs. 100/- per application.


109

7. Under “Personal Loan Against Mortgage of Immoveable Property”, individuals who are less than _________ years of age, are eligible for finance.

a) 60 b) 65 c) 70 d) 72

8. The minimum amount of loan that can be granted under “Personal Loan Against Mortgage of Immoveable Property”, is: _________

a) Rs. 25,000/- b) Rs 50,000/- c) Rs 1 lacs d) Rs 200000/- 9. For being eligible under “Personal Loan Against Mortgage of Immoveable

Property”, the minimum Net Monthly Income (NMI) of a salaried person should be ____________ a) Rs 6000/- b) Rs 12000/- c) Rs 5000/- d) Rs 10000/-

10. For being eligible under “Personal Loan Against Mortgage of Immoveable

Property”, the Net Annual Income of Professionals & Self Employed and others who are IT assessees / Agriculturists etc. should be at least : ____________

a) Rs 100,000/-/- b) Rs 1,44,000/- c) Rs 1,50,000/- d) Rs 2,00,000/-

11. The Maximum loan against mortgage of immoveable property (subject to

EMI/NMI < 50 %) is restricted to:__________________ .

a) 24 NMI/ 2 times NAI subject to a maximum of Rs. 50 lacs. b) 24 NMI/ 2 times NAI subject to a maximum of Rs. 1 crore. c) 75 % of the market value of property, with a ceiling of Rs 50 lacs d) 75 % of the market value of property, with a ceiling of Rs. 1 crore

12. For repayment of Term Loan under “Personal Loan Against Mortgage of

Immoveable Property”, the maximum period is _______ months (or upto the date of retirement, if it falls earlier) wherever ‘Check-Off’ facility is available.

a) 48 b) 60 c) 72 d) 120

13. Wherever ‘Check-Off’ facility is not available, the repayment of Term Loan under

“Personal Loan Against Mortgage of Immoveable Property” is restricted to a period of _______ months (or upto the date of retirement, if it falls earlier, for employees).

a) 36 b) 48 c) 60 d) 72


110

14. Under “Personal Loan Against Mortgage of Immoveable Property”, the

processing fee will be charged @ __________.

a) 0.50 % of the loan amount b) 2.00 % of the loan amount maximum Rs. 50,000/- c) 1.00 % of the loan amount. d) 1.10% of the loan amount.

15. Under “Personal Loan Against Mortgage of Immoveable Property”,margin is as under:

a) 50% of the market value of the property b) 40% of the market value of the property c) 20% of the market value of the property d) None of the above.

Key to Assignment PERSONAL LOANS

Q. 1 2 3 4 5 6 7 8 9 10

Ans. b c d d b a a a b c

Q. 11 12 13 14 15

Ans d d c b b


111

P’ SEGMENT ADVANCES ASSIGNMENT PERSONAL LOANS--II

1) Who among the following group of borrowers is not eligible for finance under “Medi-

Plus Scheme”? a) Permanent employees of Govt., PSUs and profit making Public Limited

Companies, with min. 2 yrs service with check-off, and 5 yrs in other cases. b) Self employed engineers, doctors, architects, CAs, MBAs with minimum 5 years

standing, age 60 years or less. c) Voluntarily retired pensioners of PSUs / Govt / PSBs / SBI age 60 years or less. d) Traders, entrepreneurs with 5 years standing, age 60years or less. e) Agents of Insurance/KVP/Mutual Funds etc. who are income tax assesses with

gross annual income of Rs. 3.00 lacs and above.

2) In order to be eligible for finance under “Medi-Plus Scheme”, the minimum Net Monthly Income (NMI) of employees/pensioners should be: ______________

a) Rs. 5,000/- b) Rs. 10,000/- c) Rs. 12,000/- d) Rs. 15,000/-

3) In order to be eligible for finance under “Medi-Plus Scheme”, the minimum Net

Annual Income (NAI) of a self employed person should be: ______________

a) Rs. 1,50,000/- b) Rs. 2,00,000/- c) Rs. 2,50,000/- d) Rs. 3,00,000/-

4) In order to be eligible for finance under “Medi-Plus Scheme”, the minimum Gross

Annual Income of an agent of Insurance/KVP/Mutual Funds should be: _______

a) Exceeding Rs. 1,50,000/- b) Exceeding Rs. 2,00,000/- c) Exceeding Rs. 3,00,000/- d) Exceeding Rs. 4,00,000/-

5) The minimum loan amount under Medi Plus Scheme is: ______________

a) Rs. 50,000/- b) Rs. 25,000/- c) Rs. 20,000/- d) Rs. 10,000/-

6) The maximum loan amount under Medi Plus Scheme for employees /self employed

persons, is 12 NMI / 1 year NAI, maximum Rs. _____________

a) 1,00,000/- b) 1,50,000/- c) 2,00,000/- d) 3,00,000/-


112

7) The maximum loan amount under Medi Plus Scheme available for VRS Pensioners and Agents of Insurance/KVP/Mutual Funds is:____________

a) Rs. 1,00,000/- b) Rs.1,20,000/- c) Rs. 1,50,000/- d) Rs.2,00,000/-

8) The margin required under Medi Plus Scheme is ______% of total cost of treatment

as per hospital bills. a) 10 b) 15 c) 20 d) 25

9) Under Medi Plus Scheme, the repayment should be done in maximum ___ EMIs.

a) 60 b) 48 c) 36 d) 24

10) Under Medi-plus scheme, where check-off facility is available, the tangible security

should be at least ______ % of the loan amount.

a) 50 b) 60 c) 75 d) 100

11) Under Medi-plus scheme, where check-off facility is not available, the tangible

security should be at least ______ % of the loan amount.

a) 60 b) 75 c) 100 d) 110

12) Under Medi-plus scheme, the processing fee will be charged @ ______ % of the loan amount.

a) 1.00 b) 1.10 c) 0.55 d) 0.50

Key to Assignment

PERSONAL LOANS-II

Q. 1 2 3 4 5 6 7 8 9 10 11 12

Ans d b d c a d a c a a d b


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XPRESS CREDIT

1. To be eligible under Xpress Credit an employee should have minimum _____ year’s length of service.

a) 1 b) 2 c) 3 d) There is no such stipulation

2. The maximum repayment period available under “Xpress Credit” is : ____________


3. The minimum amount of loan available under “XPRESS CREDIT” is Rs.______

a) 20,000/ b) 24,000/- c) 25,000/- d) 50,000/-

4. The maximum amount of loan available in all centres under “XPRESS CREDIT” is: _____

a) 12 months NMI with a ceiling of Rs. 5,00,000/- b) 12 months NMI NAI, with a ceiling of Rs. 7,50,000/- c) 24months NMI, with a ceiling of Rs. 10,00,000/- d) 24 months NMI, with a ceiling of Rs. 15,00,000/-

5. Xpress Credit is sanctioned to _______

a) Professional & self employed b) Businessman c) Employees d) All of the above

6. Which of the following has not been included under target groups under our

Xpress Credit Scheme? a) Employees of government, semi-government, profit making PSUs b) Employees of educational institutions of national repute c) Employees of profit making companies with a net worth of Rs. 50 crore or above. d) Employees of companies with CRA rating of SB 1 to SB5


114

7. Under “Xpress Credit Scheme”, the minimum Net Monthly Income (NMI) required for eligibility under the scheme should be:_____________

a) Rs. 2,500/- b) Rs. 3,000/- c) Rs. 5,000/- d) Rs. 6,000/-

8. Under “Xpress Credit Scheme”, the minimum Net Monthly Income (NMI) required

for eligibility under the scheme may be reduced to Rs.______only if salary account of entire enterprise are with us.

a) Rs. 2,500/- b) Rs. 3,000/- c) Rs. 4,000/- d) Rs. 1,000/-

9. Under “Xpress Credit Scheme”, the processing fee will be charged @ ______ % of loan amount.

a) 0.30 b) 0.50 c) 0.55 d) 1.00

10. Under “Xpress Credit Scheme”, the EMI/NMI ratio should be as under___________

a) Upto/equal to50% b) Upto/equal to55% c) Upto/equal to60% d) None of these

11. Which of following can be accepted in lieu of Check-off under “Xpress Credit Scheme”:

a) The employer pays the borrower’s salary into his SB/CA/c with our Bank. b) The borrower gives an irrevocable Standing Instruction (SI) for recovery of the

loan installments from his aforesaid account; with the SI being synchronized with the date of credit of salary

c) The employer undertakes to inform the Bank when there is a severance due to borrower’s transfer, resignation, retirement etc.

d) All of the above together

12. Under “Xpress Credit Scheme”, following type of loan can be sanctioned :

a) Either Overdraft or Demand Loan b) Either Term Loan or Demand Loan c) Either Term Loan or Overdraft d) Either Term Loan or Demand Loan or Overdraft.


115

13. Under “Xpress Credit Scheme”, rate of interest will be applied as under :

a) The Interest rate is based on the category of Check off available

b) For Category I, 500 bps above Base Rate floating,Category II- 550 bps above Base Rate, For Category III-700 bps above Base Rate will be applied

c) GM of the Network is vested with powers to extend the Category II rate to a Category III borrower only in case of employees of SB1 to SB5 rated companies who maintain their salary accounts with us.

d) All of the above is applicable.

14. Under “Xpress Credit Scheme”, penal interest will be charged as under :

a) Penal interest not to be charged for loans up to Rs.25,000. b) For Loans > Rs.25000/- , if irregularity exceeds EMI or instalment amount, for a period of one month, penal interest to be charged @2% p.a.(over

and above the applicable interest rate) on the overdue amount for the period of default.

c) No penal intt., If part instalment /EMI remains overdue. d) All of the above is applicable.

15. Credit Scoring Model is applicable to Xpress Credit in case of following customers: a ) All borrowers other than DSP/PMSP Account holders b) All borrowers including DSP/PMSP Account holders c) All borrowers including DSP/PMSP Account holders with scores upto 41 as against 71 in case of other borrowers

Key to Assignment XPRESS CREDIT

Q. 1 2 3 4 5 6 7 8 9 10 11

Ans. a c b d c c c b d a d

Q. 12 13 14 15

Ans b d d c


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MISC. SCHEMES 1. Under “SBI Two Wheeler Loan”, the minimum Net Monthly Income (NMI) or NAI

should be Rs.___________& Rs. ________ for being eligible for purchase of petrol/diesel/gas operated scooter & motor cycles.

a) 2,500/-, 30,000/- respectively b) 3,000/-, 36,000/- respectively c) 5,000/-, 60,000/- respectively d) 6,250/-, 75,000/- respectively

2. Under “SBI Two Wheeler Loan”, the minimum Net Monthly Income (NMI) or NAI

should be Rs.___________& Rs. ________ for being eligible for purchase of mopeds and battery-operated Two-wheelers.

a) 2,500/-, 30,000/- respectively b) 3,000/-, 36,000/- respectively c) 5,000/-, 60,000/- respectively d) 6,250/-, 75,000/- respectively

3. Under “SBI Two Wheeler Loan”, the maximum loan amount is restricted

to: ____

a) 4 times NMI for salaried persons & ⅓rd of NAI in case of others b) 5 times NMI for salaried persons & 40% of NAI in case of others c) 6 times NMI for salaried persons & 50% of NAI in case of others d) 9 times NMI for salaried persons & 75% of NAI in case of others

4. The minimum margin required for loan under “SBI Two Wheeler Loan” is:

___________

a) 5 % of loan amount, may be reduced to NIL if ‘check-off’ is available b) 10% of loan amount, may be reduced to 5% if ‘check-off’ is available c) 15% of loan amount, may be reduced to 10% if ‘check-off’ is available d) 20% of loan amount, may be reduced to 15% if ‘check-off’ is available

5. Under “SBI Two Wheeler Loan”, the loan is repayable within a maximum period

of ________ months.

a) 24 b) 36 c) 48 d) 60

6. Processing fee under “SBI Two Wheeler Loan”, is 1.20% of loan amount Min: Rs._____& and Max. Rs._______

a) 100/-, 1000/- b) 500, 10,000/- c) 250/-, 500/- d) Nil


117

7. In order to be eligible under “SBI credit Khazana” the applicants need to be individuals who have: ____________________

a) Availed the housing loan b) Satisfactory serviced the loan for at least one year after the moratorium

period. c) Created equitable mortgage and maintained security margin of at least

15% for purchase/construction of plot/house. d) All of the above

8. What are the benefits available to eligible borrowers under “SBI credit Khazana”?

a) Relaxation in minimum income criteria under eligible schemes. b) Longer than usual repayment periods under eligible schemes. c) Concession in rate of interest only. d) Concession in rate of interest and margins for subsequent loans .

9. The concession in interest rate, available under “SBI Credit Khazana”, for all

loans other than housing loans is: _______ a) 1.00 % b) 0.75 % c) 0.50 % d) 0.10 %

10. Which of the following schemes does not fall under the package of “SBI Credit

Khazana” for providing concessionary benefits to eligible borrowers?

a) Car Loan, Two Wheeler Loan b) Personal Loan, Education Loan (for one of the dependents) c) Gold Loan d) Tractor Loan

11. The maximum quantum of loan for migration to Gulf countries (to meet Registration expenses, Test & Interview expenses, Agency commission, Visa charges, Airfare etc.) under “Loan for Nurses Seeking Employment Abroad”, is:_____________

a) Rs. 1,00,000/- b) Rs. 1,50,000/- c) Rs. 2,00,000/- d) Rs. 3,00,000/-

12. The maximum quantum of loan for migration to UK/European countries under

“Loan For Nurses Seeking Employment Abroad”, is:______

a) Rs. 1,00,000/- b) Rs. 1,50,000/- c) Rs. 2,00,000/- d) Rs. 3,00,000/-


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13. The maximum quantum of loan for migration to USA under “Loan For Nurses

Seeking Employment Abroad” is:________________

a) Rs. 1,00,000/- b) Rs. 1,50,000/- c) Rs. 2,00,000/- d) Rs. 3,00,000/-

14. The age of an applicant under “Loan For Nurses Seeking Employment Abroad”

should not be more than _________ years.

a) 30 b) 35 c) 40 d) 45

15. “Loan For Nurses Seeking Employment Abroad” is repayable in EMIs within a

period of _________ years or in lump sum.

a) 5 b) 4 c) 3 d) 2

16. The minimum margin required under “Loan For Nurses Seeking Employment

Abroad” is: ____

a) 10% b) 15% c) 20% d) 25%

Key to Assignment MISC. SCHEMES

Q. 1 2 3 4 5 6 7 8 9 10

Ans. d c c c b c d d d c

Q. 11 12 13 14 15 16

Ans b c d b c a


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‘P’ SEGMENT ADVANCES ASSIGNMENT MISC. SCHEMES-II

1) Under SBI GETS Short Duration Loan, following is applicable:

a) Existing individual customers with good past relationship are eligible b) Loan to be liquidated in maximum period of 12 months c) Margin is 50% of the prevailing market prices in leading financial dailies d) Rate of intt is 450 bps above Base Rate e) All of the above

2) Under SBI GETS Short Duration Loan, following is applicable: a) Existing individual customers with good past relationship are eligible b) Loan to be liquidated in maximum period of 36 months c) Margin is 50% of the prevailing market prices in leading financial dailies d) Rate of intt is 600 bps above Base Rate e) All of the above.

3) Under “Loans for Subscription to IPOs”, the minimum amount of loan should be:

a) Rs. 5,000/- b) Rs. 10,000/- c) Rs. 20,000/- d) 50% of the application money stipulated in the IPO

4) Under “Loans for Subscription to IPOs”, the maximum amount of loan is restricted to:

______ subject to maximum exposure of Rs. 20 lacs per person.

a) Rs. 25,000/- b) Rs. 40,000/- c) Rs. 50,000/- d) Rs. 1,00,000/-

5) The minimum margin required under “Loans for Subscription to IPOs”, is ____ % of

the issue price of share applied/bid.

a) 50 b) 40 c) 30 d) 25

6) Under “Loans for Subscription to IPOs”, the loan should be repaid within

_________of allotment. a) 3 months b) 2 months c) 45 days d) 30 days


120

7) The minimum margin required for loans against shares/debentures to individuals is _______% of the prevailing market price of shares / non-convertible debentures in the Stock Exchanges as reported in the Economic Times.

a) 30 b) 40 c) 50 d) 60

8) The maximum amount of loan that can be granted against the security of shares/debentures is Rs. _________ lac per borrower if securities are held in physical form and Rs. ________lac if the securities are held in demat form.

a) 25, 50 b) 20, 30 c) 10, 20 d) 5 , 10

9) The loan granted against the security of shares/debentures, should be liquidated

within a maximum period of _________ months.

a) 30 b) 36 c) 48 d) 60

10) Before the sanction of loan against the security of shares, it should be ascertained

that the market price of the security is not at variance with the arithmetical average of preceding 52 weeks high and low by more than _______ % in downward direction.

a) 20 b) 25 c) 30 d) 40

11) Before the sanction of loan against the security of shares, it should be ascertained

that the P/E ratio of the company does not exceed _______ as published in Economic Times. In case P/E ratio is not available the shares should not be accepted as security.

a) 30 b) 35 c) 40 d) 50

12) For sanction of loan against the security of shares, the total number of shares of the

company traded on the NSE and BSE should exceed ________on the day of financing and on each preceding 2 days.

a) 10,000 b) 15,000 c) 20,000 d) 25,000


121

13) What is the maximum amount of loan available under Gold Loan Scheme?

a) Rs. 1.00 lac b) Rs. 2.00 lac c) Rs. 3.00 lac d) Rs. 5.00 lac

14) The minimum amount of loan that can be granted under ‘Gold Loan Scheme’ in Rural/Semi-urban centres, is:________

a) Rs. 20,000/- b) Rs. 15,000/- c) Rs. 10,000/- d) Rs. 5,000/-

15) The minimum amount of loan that can be granted under ‘Gold Loan Scheme’ in Urban/Metro centres, is:________

a) Rs. 20,000/- b) Rs. 15,000/- c) Rs. 10,000/- d) Rs. 5,000/-

16. For loan against the security of RBI Relief Bonds to the public, a margin of ______% should be kept on bonds.

a) 35 b) 40 c) 25 d) 20

17. Loan against the security of RBI Relief Bonds, is repayable within a period of

________ months. a) 24 b) 36 c) 48 d) No repayment of principal and interest is compulsorily proposed. The loan can be liquidated out of maturity proceeds of Bonds.

18. The Central Board of the Bank has recently approved the inclusion of following security/ies under the Bank’s list of ‘Specified Securities’.

a) 7% SAVINGS BONDS 2002, b) 6.5% SAVINGS BONDS 2003 (NON TAXABLE) c) 8% SAVINGS (TAXABLE) BONDS 2003 d) All of the above.

19. The minimum margin required for all loans against the Primary/Collateral security

of mutual funds is _______% .

a) 30 b) 40 c) 50 d) 60


122

Key to Assignment MISC. SCHEMES-II

Q. 1 2 3 4 5 6 7 8 9 10

Ans. e e d c a d c c a b

Q. 11 12 13 14 15 16 17 18 19

Ans. c d c d c b d d c


123

‘P’ SEGMENT ADVANCES

REVERSE MORTGAGE LOAN ASSIGNMENT 1. What is the objective of launching Reverse Mortgage Loan?

a) Withdrawal of Mortgage already created by the borrower b) To provide a source of additional income for citizens of India who own

self-acquired and self occupied house property in India c) To provide a source of additional income for senior citizens of India who

own self-acquired and self occupied house property in India d) None of the above

2. Reverse Mortgage Loan will be granted in the name of _________

a) single borrower b) single or jointly with spouse in case of living spouse c) in the name of spouse d) none of the above

3. Which type of facility is granted under Reverse Mortgage Loan?

a) Term Loan b) Cash Credit c) Demand Loan d) Non-renewable Overdraft without ledger folio charges

4. What is the quantum of the loan under Reverse Mortgage Loan?

a) 75% of the value of the property b) 90% of the value of the property c) 50 of the value of the property d) 100% of the value of the property

5. Reverse Mortgage Loan will be classified as __________in performance

reports as______ a) Personal Loan b) Personal Loan against mortgage of immovable property c) Xpress Credit d) None of the above

6. What should be the age of first borrower under Reverse Mortgage Loan? a) Above 50 years b) Above 58 years c) Above 60 years d) No such condition


124

7. Under Reverse Mortgage Loan Borrower should not have more than one spouse

whose age should be above____years

a) 50 years b) 58 years c) 60 years d) No such condition

8. Under Reverse Mortgage Loan what is the criteria about residence of the

borrower

a. Borrower should be staying at self acquired and self owned house/flat against which loan is being raised

b. Borrower should be staying at rented house/flat against which loan is being raised

c. Borrower should be staying at self acquired and self owned house/flat against which loan is being raised, as his permanent primary residence.

d. no such criteria

9. Under Reverse Mortgage Loan, the verification of title of property will be done for a period of _______years.

a) 10 b) 20 c) 15 d) 30

10. Under Reverse Mortgage Loan, what should be the residual life of the property in case of single borrower?

a) 20 c) 15 c) 10 d) 25

11. Under Reverse Mortgage Loan, what should be the residual life of the property in

case spouse of borrower is below 60 years of age?

a) 20 c) 15 c) 10 d) 25

12. What security will be taken under Reverse Mortgage Loan?

a. Equitable mortgage of residential property b. Equitable mortgage of commercial property c. Regd. Mortgage of commercial property d. No security is required


125

13. In case the age of the younger of the borrowers is between 58 and upto 68 years. the maximum Tenor of the loan under Reverse Mortgage Loan is___years

a) 15 b) 10 c) 5 d) 20

14. In case the age of the younger of the borrowers is above 68 years, the maximum Tenor of the loan under Reverse Mortgage Loan is___years

a) 15 b) 10 c) 5 d) 20

15. Disbursement of Reverse Mortgage Loan will be by___________

a. issuing banker cheque b. issuing bank draft c. TDR of the amount will be made d. Credit to Saving Bank account in the joint name of the borrowers operated

by E or S

16. What is the periodicity of availing Reverse Mortgage Loan?

a. Monthly/half yearly b. LumpSum c. Monthly /quarterly d. b & c

17. What is the Repayment/Settlement of Reverse Mortgage Loan?

a. When the last surviving borrower dies b. When the last surviving borrower opts to sell the home or permanently

moves out of the home c. Settlement with accumulated interest by sale proceeds of residential

property or prepayment by borrower and his next of kin d. Any of the above

18. What will be the Pre-Payment penalty under Reverse Mortgage Loan?

a) 1% of amount prepaid b) 0.5% of amount prepaid c) no prepayment penalty d) depends upon the sanctioning authority


126

19. What is the periodicity of valuation/Revaluation of property under Reverse Mortgage Loan

a. 3 years b. once in 2 years c. every year d. 5 years after initial valuation

20. What are the processing charges for loan granted under Reverse Mortgage

Loan?

a. 0.50% of loan amount, minimum Rs. 500/- and maximum Rs. 10,000/- b. 1.00% of loan amount, minimum Rs. 500/- and maximum Rs. 10,000/- c. 0.50% of loan amount, minimum Rs. 500/- and maximum Rs. 5,000/- d. nil

21. Right of Rescission i.e right of the customer to cancel the transaction after

disbursement is within____days.

a. 15 days b. 7 days c. 20 days d. it is not allowed

22. The borrower will make a ________ and handover to the lender to enable him to

recover the loan.

a. Power of Attorney b. Letter of Authority c. Will d. Registered Will

KEY TO ASSIGNMENT NO. REVERSE MORTGAGE LOAN

1 2 3 4 5 6 7 8 9 10 11 c b d b b c b c d a d

12 13 14 15 16 17 18 19 20 21 22 a a b d d d c d a b c


127

ASSIGNMENT

SME POWERGAIN, POWERPACK & SAHAJ

1. What is the required QAB for SME POWERGAIN?

a) Rs. 10,000/- b) Rs. 1,00,000/- c) Rs. 5,00,000/- d) No such requirement

2. What is the required QAB for SME POWERPACK?


3. What is the penalty for non-maintenance of QAB for SME POWERGAIN

(a) Rs. 2,000/- per quarter (b) Rs 5,000/- per quarter (c) Rs 4,000/- per quarter (d) Rs. 6,000/- per quarter

4. What is the penalty for non-maintenance of QAB for SME POWERGAIN

a) Rs. 2,000/- per quarter b) Rs 5,000/- per quarter c) Rs 4,000/- per quarter d) Rs. 6,000/- per quarter

5. What concession in charges is available for sending remittance under RTGS under SME POWERGAIN

(a) 10% (b) 25% (c) 50% (d) No concessions

6. What are the transaction charges of Multi City Cheques for SME POWERGAIN

accounts?

(a) Rs 25/- per cheque up to Rs 5 lacs and Rs 50/- for amt. above Rs 5 lacs (b) Rs 10/- per cheque up to Rs 5 lacs and Rs 25/- for amounts above Rs 5 lacs (c) Rs 50/- per cheque up to Rs 5 lacs and Rs 100/- for amounts above Rs 5 lacs (d) No charges


128

7. What are the transaction charges of Multi City Cheques for SME POWERGAIN accounts?

a) Rs 25/- per cheque up to Rs 5 lacs and Rs 50/- for amt. above Rs 5 lacs b) Rs 10/- per cheque up to Rs 5 lacs and Rs 25/- for amounts above Rs 5 lacs c) Rs 50/- per cheque up to Rs 5 lacs and Rs 100/- for amounts above Rs 5 lacs d) No charges

8. What is the penalty for closure of accounts within 12 months in respect of SME POWERGAIN

(a) Rs 2500/- (b) Rs 1500/- (c) Rs 5000/- (d) No charges

9. What is the penalty for closure of accounts within 12 months in respect of SME

POWERPACK

(a) Rs 2500/- (b) Rs 1500/- (c) Rs 5000/- (d) No charges

10. Cheque return protection facility is available for amount upto-------for max period

of 10days at a time under SME POWERGAIN.

a)Rs50000/- b)Rs 10000/- c)Rs25000/- d)Rs40000/- 11. Cheque return protection facility is available for amount upto-------for max period

of 10 days at a time under SME POWERPACK.

a)Rs50,000/- b)Rs 1,00,000/- c)Rs25,000/- d)Rs40,000/- 12. .Under SME POWERGAIN maximum daily withdrawal limit through ATM is a) Rs40000/- b) Rs25000/- c)Rs50000/- d)Rs45000/- 13. .Under SME POWER PACK maximum daily withdrawal limit through ATM is a) Rs40000/- b) Rs25000/- c)Rs50000/- d)Rs45000/- 14. One of the following facilities is not free either in SME POWERGAIN or

POWERPACK . a) issuing of duplicate statement b) ledger folio charges

c) Issuance of Banker Cheque d) collection of cheques drawn on other banks


129

15. SAHAJ is a:

a) Home Loan product for Power sector employees b) Current account for SME Entrepreneurs having small means c) Education loan for students pursuing studies in prestigious institutes d) Financing scheme for rural electrification projects

16. What is QAB in respect of SAHAJ Current Account? a) Rs 500/- per quarter

b) Rs 750/- per quarter c) Rs 1000/- per quarter d) Rs 2000/- per quarter

17. SAHAJ Current Account can be opened by a) Individual customers b) Proprietorship Firms c) Partnership Firms d) Any of these 18. The cheque book facility has now been extended to SME Sahaj current accounts

with one of the following conditions.

a) Number of cheque leaves to be issued per financial year to be restricted to 25 leaves with a charge of Rs. 5 per leaf b) Additional requirement of further cheque leaves may be permitted with a charge of Rs.10 per leaf. c) Drawings per cheque to be limited to Rs. 15,000/- Each cheque leaf to carry this inscription. d) All of the above

19. What is the penalty for non-maintenance of QAB in respect of SAHAJ Current

Account? a) Rs 300/- per quarter


20. One of the following is not true about SAHAJ Current Account? a) Maximum amount for which cheque can be drawn is Rs10000/- b) Maximum withdrawal permitted through ATM is Rs15000/- c) Minimum balance required for opening the account is Rs1000/- d) Internet banking facility is free of cost


130

KEY TO ASSIGNMENT SME POWERGAIN, POWERPACK & SAHAJ

1 2 3 4 5 6 7 8 9

b c a b d a d a c

10 11 12 13 14 15 16 17 18

c b b d d b c d d

19 20

a d


131

ASSIGNMENT

SME POWER, & SAHAJ

1. QAB required to be maintained for SME power pack is?


2. Which of the following is not true?

a) QAB required to be maintained for SME power gain is Rs. 1,00,000/- b) QAB required to be maintained for SME power advantage is Rs. 2,00,000/- c) QAB required to be maintained for SME power previlege is Rs 3,00,000/- d) QAB required to be maintained for SME power premium is Rs 5,00,000/-

3.Which of the following is not true in respect of SME power pack

a) Cash deposit in home branch is free upto any amount b) Issue of draft and banker cheque is free c) RTGS /NEFT is free d) Outstation cheque collection is free

4. The no of current accounts that can be opened under SME power is -----

a) 8 b) 9 c) 7 d) 10

5. The account with minimum QAB amongst the different current accounts under

SME power is

(a) SME super (b) SME lite (c) SME base (d) none of these 6. Multicity cheques are not issued free for which of the following?

(a) SME power gain (b) SME power advantage (c) SME power super (d) None of the above

7. Transaction charges on multicity cheques is not applicable in case of which of the following type of SME power pack?


132

a) SME power super b) SME power gain c) SME power base d) SME power lite

8. Cash withdrawal limit in case of international ATM card meant for SME power

pack,SME power premium and SME power privilege is

(a) Rs 50000/- (b) Rs 15000/- (c) Rs25000/- (d) Rs45000/-

9. Cash withdrawal limit in case of domestic ATM card meant for SME power

gain,SME power super and SME power base , SME power lite is (a) Rs 50000/- (b) Rs 30000/-

(c) Rs 40000/- (d) 35000/- 10. Cash deposit in home branch is free upto Rs------lac in SME Power advantage,

in a month

a)25 b)30 c)20 d)40000 11. Cash deposit in home branch is free upto Rs------lac in SME Power base, in a

month.

a)4 b) 3 c)5 d)6 12. .Charges for cash withdrawal at home branch in case of SME power base is a) Rs25/- b) Rs20/- c)Rs15/- d)nil 13. .Standing instructions charges are nil in case of which of the following accounts a) SME power gain b) SME power base c)SME power lite d) SME power super 14. Which of the following is not true about SME power gain . a) issuing of duplicate statement is free b) pre approved car loan for promoters is there

c) ATM card issued to it is ATM power gain card d) there are no charges for NEFT


133

15. SAHAJ is a:

a) Home Loan product for Power sector employees b) Current account for SME Entrepreneurs having small means c) Education loan for students pursuing studies in prestigious institutes d) Financing scheme for rural electrification projects

16. What is QAB in respect of SAHAJ Current Account? a) Rs 500/- per quarter


17. SAHAJ Current Account can be opened by a) Individual customers b) Proprietorship Firms c) Partnership Firms d) Any of these 18. The cheque book facility has now been extended to SME Sahaj current accounts

with one of the following conditions.

a) Number of cheque leaves to be issued per financial year to be restricted to 25 leaves with a charge of Rs. 5 per leaf

b) Additional requirement of further cheque leaves may be permitted with a charge of Rs.10 per leaf.

c) Drawings per cheque to be limited to Rs. 15,000/- Each cheque leaf to carry this inscription.

d) All of the above 19. What is the penalty for non-maintenance of QAB in respect of SAHAJ Current

Account? a) Rs 300/- per quarter


20. One of the following is not true about SAHAJ Current Account? a) Maximum amount for which cheque can be drawn is Rs10000/- b) Maximum withdrawal permitted through ATM is Rs15000/- c) Minimum balance required for opening the account is Rs1000/- d) Internet banking facility is free of cost


134

KEY TO ASSIGNMENT SME POWER & SAHAJ

1 2 3 4 5 6 7 8 9

b d d a c d b a c

10 11 12 13 14 15 16 17 18

c a d a b b c d d

19 20

a a


135

SME POWER, POWER JYOTI & SURABHI

1. QAB under the new SME Power can range from ------- to ---------- a)Rs20000, Rs5.00lacs b)Rs25000, Rs2.00lacs c)Rs10000, Rs2.00lacs d)Rs25000, Rs5.00lacs 2. A facility which is not available in the new power CA is

a) Free internet banking b) unlimited free cash withdrawal at home branch c) cheque return protection facility d) Issue of multicity cheques free of charge

3. RTGS facilty is not free for which of the following SME power CAs a)Power gain b)Power lite c)power privilege d)power pack 4. Penalty for closure of account within 12 months in case of SME Power pack is

a)Rs2000/- b)Rs5000/- c)Rs10000/- d)Nil 5. The charges for non maintenance of QAB varies from minimum of -------- to maximum of ------depending upon the type of power CA

a)Rs3000/-, Rs7000/- b)Rs2000/- , Rs10000/- c)Rs3000/- , Rs10000/- d)Rs 2000/- ,Rs15000/- 6.Which of the following is not true in respect of deposit of cash at home branch a) Cash deposit at home branch is free upto Rs20.00lacs per month in case of Power Advantage b) Cash deposit at home branch is free upto Rs5.00lacs per month in case of Power lite c) Cash deposit at home branch is free upto Rs15.00lacs per month in case of Power gain d) Cash deposit at home branch is free upto Rs10.00lacs per month in case of Power super. 7. All categories of salary accounts are not permitted to be opened in case

of which of the following SME power accounts.

a) SME power gain b) SME power previlege c) SME power pack d) SME power premium


136

8. Which of the following is not true in respect of SME power base

a) Cheques drawn on non home branch and collected at home branch is free intra city.

b) RTGS is free c) ATM card provided is ATM power gain d) CINB is free

9. Issue of cheque books (other than multi city cheque ) is not free in case of which of the following SME current accounts.

a)SME power lite b)SME power pack c)SME power advantage

10. POWER JYOTI is a a) Home Loan product for Power sector employees b) Current account for fee collection c) Education loan for students pursuing studies in prestigious institutes d) Financing scheme for rural electrification projects 11. What is QAB in respect of POWER JYOTI Current Account? a) Rs 5000/- per quarter

b) Rs 50,000/- per quarter c) Rs 1,00,000/- per quarter d) Rs 25,000/- per quarter

12. What is the penalty for non-maintenance of QAB in respect of POWER JYOTI

Current Account? a) Rs 1000/- per quarter


13. What is the penalty for closure of accounts within 12 months in respect of

POWER JYOTI Current Account? a) Rs 500/- b) Rs 300/- c) Rs 400/- d) No charges

14. One of the following is not true about POWER JYOTI Current account a) Transactions other than fee collection/donation are not permitted b) Cheque book facility is not available c) No fee collection charges are taken from the person remitting fees d) Cash handling charges waived


137

15. For activation of fee collection module under the POWER JYOTI Current Account

scheme the option to be chosen in core while opening the account is. a) Statement/mail option/fee collection b) Term a/c options c) Govt/PPF/Cr card details d) core options 16. One of the following is not true about POWER JYOTI Current account

a) No cheque book is issued on the account b) Cash, transfer and clearing transactions are permitted c) No overdraft is permissible d) There are charges for CINB facility

17 Surabhi is a combination of fixed deposit and a) current account b) saving bank account

c) either a or b d) neither a nor b

18. The amount of loan available under this scheme is a) Rs10000/- b)80% of deposit c)nil d)75% of deposit

19. SBI Surabhi deposit account can be opened by

a) Corporate b) Institutions c) Trusts d) Small & Medium Enterprises who manage the PF e) All of the above-

20. Under SBI Surabhi deposit scheme, any surplus funds in the account exceeding

the threshold limit are transferred to a) Multi Option Deposits b) Special Term Deposits c) Corporate Liquid Term Deposits d) Recurring Deposits 21. Minimum & maximum period of fixed deposit under SBI Surbahi is a) 12 months & 60 months b) 24months & 48 months c) 12 month & 36 months d) 12months & 24 months .


138

22. Under SBI Surabhi, minimum amount of deposit to be maintained in Current Account and Saving Account is Rs. _______ & Rs._______

a) 10,000/-, 1000/- b) 15,000/-, 2000/- c) 16,000/-, 3000/- d) 17,000/-, 4000/-

23. Under SBI Surabhi deposit scheme, the threshold balance required is

Rs.______over which sweep will take place. a) Rs.25,000 b) 1,00,000 c) Rs.50,000 d) Rs.1,000 24. Under SBI Surabhi deposit scheme, funds can be deposit for a the period

ranging from a) 1 to 2 years b) 1 to 3 years c) 2 to 5 years d)1 to 5 years

KEY TO ASSIGNMENT SME POWER, POWER JYOTI & SURABHI

1 2 3 4 5 6 7 8 9 a c b b c b a b d

10 11 12 13 14 15 16 17 18 b d a a c a d c c 19 20 21 22 23 24 25 e c c a c b c


139

MICRO ADVANCES 1. The applicable rate of interest on DIR advances is:

a) 10% b) 4% c) 7% D) 6%

2. Loan limit under DIR advances has been increased from Rs. 6500/- to

Rs. ____ a) 10,000/- b) 8000/- c) 15,000/- d) 12,000/- 3. Loan limit for beneficiaries of Indira Awaas Yojana under DIR advances has been

increased from Rs. 6500/- to Rs. ____ a) 20,000/- b) 10,000/- c) 15,000/- d) 12,000/- 4. Family Income under DIR advances has been increased from Rs. 6400/- to Rs.

____ in rural areas a) 10,000/- b) 12,000/- c) 15,000/- d) 18,000/- 5. Family Income under DIR advances has been increased from Rs. 7200/- to Rs.

____ in Urban areas a) 20,000/- b) 24,000/- c) 15,000/- d) 30,000/- 6. The new name of Prime Minister Rozgar Yojna is:

a) PRIME MINISTER’S NEW EMPLOYMENT GENERATION PROGRAMME (PMNEGP)

b) PRESIDENT EMPLOYMENT PROGRAMME (PEP) c) PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME

(PMEGP) d) MINISTER’S EMPLOYMENT GENERATION PROGRAMME (MEGP)

7. Under PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP), the maximum cost of the project/unit admissible under manufacturing sector is Rs.___ lakhs.

a) 10 b) 25 c) 5 d) 2


140

8. Under PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP), the maximum cost of the project/unit admissible under business/service sector is Rs.___ lakhs.

a) 10 b) 25 c) 5 d) 2 9. Under PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME

(PMEGP), the Bank will sanction ___% of the project cost in case of General Category of


(PMEGP), the Bank will sanction ___% of the project cost in case of SC/ST Category of


(PMEGP), the maximum repayment period is: a) 2-3 years b) 3-4 years c) 3-5 years d) 3-7 years 12. What is Moratorium Period under PRIME MINISTER’S EMPLOYMENT

GENERATION PROGRAMME (PMEGP): a) 3 months b) 12 months c) 18 months d) 6 months 13. Under PMEGP, the rate of subsidy of project cost in case of General category in

urban area will be _____%

a) 10% b) 15% c) 20% d) 25%

14. Under PMEGP, the rate of subsidy of project cost in case of General category in Rural area will be _____%

a) 10% b) 15% c) 20% d) 25%


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15. Under PMEGP, the rate of subsidy of project cost in case of

SC/ST/OBC/Minority/Women/Ex-Servicemen/Physically Handicapped, in Hill & Border areas of an urban area will be _____%

a) 25% b) 15% c) 20% d) 35%

16. Under PMEGP, the rate of subsidy of project cost in case of

SC/ST/OBC/Minority/Women/Ex-Servicemen/Physically Handicapped, in Hill & Border areas of an rural area will be _____%

a) 10% b) 35% c) 20% d) 25%

17. What is the meaning of SGSY:

a) SELF GRAM SWAROZGAR YOJANA b) SUDARSHAN GRAM SWAROZGAR YOJANA c) SUPER GRAM SWAROZGAR YOJANA d) SWARNAJAYANTI GRAM SWAROZGAR YOJANA

18. No Collateral Security will be taken for loan of Rs.____ granted to an individual

under SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY) a) 50,000/- b) 20,000/- c) 1,00,000/- d) 2,00,000/- 19. No Collateral Security will be taken for loan of Rs.____ granted to a Group under

SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY) a) 10,00,000/- b) 3,00,000/- c) 5,00,000/- d) 2,00,000/- 20. Subsidy under SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY)

is____.____ under General Category beneficiaries a) 10% of the Project Cost Max Rs. 5000/- b) 20% of the Project Cost Max Rs. 6000/- c) 30% of the Project Cost Max Rs. 7500/- d) 40% of the Project Cost Max Rs. 10,000/-


142

21. Subsidy under SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY) is____.____ under SC/ST beneficiaries a) 10% of the Project Cost Max Rs. 5000/- b) 20% of the Project Cost Max Rs. 6000/- c) 30% of the Project Cost Max Rs. 7500/- d) 50% of the Project Cost Max Rs. 10,000/-

22. Nodal agency for the implementation of PMEGP at the national level is: a) RBI b) NABARD c) KVIC d) Ministry of Micro, Small & Medium Enterprises 23. Finance to SC/ST beneficiaries should not be less than ______% of total finance

under DIR Advances a) 25 b) 30 c) 40 d) 50

KEY MICRO ADVANCES

Q. 1 2 3 4 5 6 7 8 9 10

Ans. B C A D B C B A D D

Q. 11 12 13 14 15 16 17 18 19 20

Ans. D B B D A B D C A C

Q. 21 22 23

Ans. D C C


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DEFINITION OF SME & SBI SME COLLATERAL- FREE LOANS (SMECFL)

E1.1…1 1. SBI’ definition of SME is:

a) Enterprises with a limit of Rs. 25 Crores b) Enterprises with a limit of Rs. 50 Crores c) Enterprises with a turnover of Rs. 50 Crores d) Enterprises with a turnover of Rs. 25 Crores

2. As per MSMED Act, 2006 investment in Plant & Machinery of Micro Enterprises will not exceed Rs._______ lacs in case of Industrial Enterprises & Rs. ______lacs in case of Service Enterprises.

a) 25, 10 b) 10, 25 c) 10, 10 d) 15, 25

3. As per MSMED Act, 2006 investment in Plant & Machinery of Small

Enterprises will not exceed Rs._______ Crores in case of Industrial Enterprises & Rs. ______Crores in case of Service Enterprises.

a) 25, 10 b) 10, 25 c) 05, 02 d) 25, 25

4. As per MSMED Act, 2006 investment in Plant & Machinery of Medium Enterprises will not exceed Rs._______ Crores in case of Industrial Enterprises & Rs. ______Crores in case of Service Enterprises.

a) 25, 10 b) 10, 05 c) 05, 02 d) 25, 25

5. Who can be granted credit facility under SBI SME collateral- free loans

(SMECFL) scheme?

a) Micro & small Enterprises-Manufacturing b) Micro & small Enterprises-Services c) Traders d) a & b


144

6. The purpose of granting credit facility under SBI SME collateral- free loans

Scheme is:

a) Equipment Finance b) Working Capital c) Term Loan d) Working Capital & TL for building/Office, Equipment purchase

7. Which type of credit facility will be granted under SBI SME collateral- free loans Scheme is:

a) Cash Credit b) L.C./B.G c) Term Loan d) All of the above

8. The Term Loan granted under SBI SME collateral- free loans Scheme is

repayable in _________years including moratorium period. a) 7 b) 5 c) 4 d) 3

9. Borrower is required to submit ________Stock Statement for loan upto Rs. 25 lacs under SBI SME collateral-free loans Scheme.

a) Monthly b) Quarterly c) Half Yearly d) Yearly

10. What is the maximum quantum of advance that can be provided under SBI SME

collateral- free loans Scheme?

a) Rs. 10.00 lacs b) Rs. 100.00 lacs c) Rs. 25.00 lacs d) Rs. 50.00 lacs

11. In case a unit intends to avail credit facility under SBI SME collateral- free loans

Scheme, which type of collateral security the bank will take?

a) EM/RM b) May be covered under CGTMSE c) TPG d) Mandatory covered under CGTMSE

12. As per the scoring model for covered under SBI SME collateral- free loans

Scheme, a unit has to score minimum of ____% score to qualify under the scheme

a) 50 b) 60 c) 70 d) All bankable loans are eligible


145

13. Working Capital Limit under SBI SME collateral- free loans Scheme of a manufacturing enterprises will be assessed at ____% of their projected annual turnover & that of service enterprises will be assessed at ____% of their projected turnover

a) 15, 15 b) 25, 15 c) 20, 15 d) 20, 20

14. Term Loan under SBI SME collateral- free loans Scheme to will be assessed at _____% of project cost

a) 25 b) 50 c) 75 d) 100

15. Limit under SBI SME collateral- free loans Scheme to a manufacturing

enterprises will be assessed as per

a) Operating Cycle Method b) Traditional Method c) Nayak Committee d) PBS Method

16. The periodicity of stock statement in case of loan above Rs. 25.00 lacs under

SBI SME collateral- free loans Scheme is

a) Monthly b) Quarterly c) Half-yearly d) Yearly

17 For Loans between Rs.25 lacs to Rs. 1.00 Crore under SBI SME collateral- free loans Scheme unit s rating should be

a) SB-8 & above b) SB-9 & above c) SB-10 & above d) SB-7 & above

18. Loan Processing and Service Charges under SBI SME collateral- free loans Scheme is _________% of normal charges

a) 25 b) 50 c) 60 d) 75

19 Bank has decided to make all loans to Micro and Small Enterprises (MSEs) up to Rs. _________ lacs compulsorily collateral free, subject to these being found eligible for cover under the guarantee scheme of CGTMSE, except in cases where the borrower opts out of the scheme and provides adequate and acceptable collaterals.

a) 10 b) 15 c) 25 d) 50


146

20. Under SBI SME collateral- free loans Scheme, the chief promoter /chief

executive should be __________ years of age

a) 21-65 b) 18-65 c) 21-70 d) No specific age limit restrictions

KEY TO ASSIGNMENT DEFINITION OF SME & SBI SME COLLATERAL- FREE LOANS (SMECFL)

1 2 3 4 5 6 7 8 9 10 c a c b d d d a b b

11 12 13 14 15 16 17 18 19 20 d d c c c a c b c d


147

ASSIGNMENT

SME CREDIT CARD & SMART SCORE

1. Who can be granted credit facility under SME Credit Card Scheme?

a) Small industrial units b) Small retail traders c) Prof. & self-employed d) All of above

2 What is the maximum quantum of advance that can be provided under SME Credit Card Scheme?

a) Rs. 5.00 lacs ` b) Rs. 10.00 lacs c) Rs. 15.00 lacs d) Rs. 20.00 lacs

3 Which type of credit facility can be provided under SME Credit Card Scheme?

a) Demand loan b) Cash Credit c) Term Loan d) Both (b) and (c) above

4 Term Loan portion under SME Credit Card Scheme will be repaid in a maximum

of ____years in suitable instalments

a) 3 b) 5 c) 7 d) 9

5 In case a SSI unit intends to avail credit facility under SME Credit Card Scheme, which type of collateral security the bank will take?

a) EM b) RM c) TPG d) To be covered under CGTMSE

6 The limit sanctioned under SME Credit Card Scheme is valid for ____years

a) 1 b) 2 c) 3 d) 5

7 As per the scoring model for SME Credit Card Scheme, a unit has to score

minimum of ____% score to qualify under the scheme

a) 50 b) 60 c) 70 d) 80


148

8 In case a SBF unit intends to avail credit facility under SME Credit Card Scheme, which type of collateral security the bank will take?

a) To be covered under CGTMSE b) Moveable/Immovable property c) Third Party Guarantee d) Any of the above

9 Limit under SME Credit Card Scheme of a small business unit/retail trader will be

assessed at ____% of their annual turnover or ____% of turnover of the last 12 months in their accounts, whichever is higher

a) 10, 10 b) 15, 15 c) 20, 20 d) 25, 25

10 Limit under SME Credit Card Scheme to Professional and Self employed persons will be assessed at _____% of gross annual income as declared in their income tax return

a) 25 b) 50 c) 75 d) 100

11 Limit under SME Credit Card Scheme to a SSI unit will be assessed as per

a) Operating Cycle Method b) Traditional Method c) Nayak Committee d) PBS Method

12 The periodicity of stock statement in case of SME Credit Card Scheme is

a) Monthly b) Quarterly c) Half-yearly d) Yearly (28TH Feb)

13 Under which segments, units can be covered for financing under Smart Score?

a) P b) Agr c) SME d) None of above

14 Which category can be covered for financing under SME Smart Score?

a) Sole Proprietor b) Partnership c) Closely held Public/Pvt. Ltd. Cos. d) All of above

15 The Chief promoter/Chief executive of the unit, who intends to avail credit facility

under SME Smart Score should be ____-____years of age

a) 18-60 b) 21-62 c) 21-65 d) 18-65


149

16 For becoming eligible to avail credit facility under SME Smart Score the minimum overall score of the unit is ______%

a) 50 b) 60 c) 70 d) 80

17 The unit should score a minimum score of ___% under each sub head of Business, Personal and Collateral for becoming eligible to avail credit facility under SME Smart Score

a) 50 b) 60 c) 70 d) 80

18 In case of Working Capital needs, a SSI Unit can be granted __% of annual turnover subject to a maximum of not exceeding Rs.__lacs under SME Smart Score

a) 10, 15 b) 15, 20 c) 20, 50 d) 25, 30

19 In case of Term Loan, a SSI unit can be granted ___% of project cost subject to

a maximum of not exceeding Rs._________lacs under SME Smart Score

a) 47, 15 b) 57, 20 c) 67, 50 d) 75, 50

20 Moratorium on Term Loan under SME Smart Score can be provided for a period

not exceeding ____months

a) 3 b) 6 c) 9 d) 12

21 Term Loan under SME Smart Score will be repaid in maximum of ____years

excluding moratorium period

a) 5 b) 7 c) 8 d) 9


150

22 M/s. Parbod Kumar Subodh Kumar, a SSI unit has applied for Rs. 45 lac working

capital loan. Which of the following CRA model under SME Smart Score will be applicable

a) CRA Old Model b) Non Trading Regular Model c) Risk Matrix Model d) Non Trading Simlified Model

23 In case of Working Capital needs, a unit other than SSI can be granted ___% of annual turnover subject to a maximum of not exceeding Rs. ____lacs under SME Smart Score

a) 10, 15 b) 15, 20 c) 15, 25 d) 20, 25

24 In case of Term Loan, a unit other than SSI can be granted ___% of project cost subject to a maximum of not exceeding Rs. ____lacs under SME Smart Score

a) 47, 15 b) 57, 20 c) 67, 25 d) 75, 25

25 Working Capital Limit under SME Smart Score Scheme is sanctioned for a period of _____ years subject to annual review.

a) 1 b) 3 c) 2 d) 5

KEY TO ASSIGNMENT SME CREDIT CARD & SMART SCORE

1 2 3 4 5 6 7 8 9 d b d b d c b d c 10 11 12 13 14 15 16 17 18 d c d c d d b a c 19 20 21 22 23 24 25 c b a d c c c


151

ASSIGNMENT SME Credit Plus, Artisan & Swarojgar Credit Card

1 SME Credit Plus can be granted to SSI borrowers for _______

a) Meeting bulk orders b) Repairs to Machinery c) Tax Payments d) All of above

2 Maximum loan under SME Credit Plus can be granted to the tune of ____% of

aggregate working capital limit or Rs. ___lacs, whichever is lower

a) 20, 25 b) 20, 30 c) 25, 25 d) 25, 30

3 Which type of credit facilities will be granted under SME Credit Plus

a) Clean Cash Credit b) Cash Credit c) Term Loan d) All of above

4. There should be a gap of ________days between the last date of repayment of outstandings and the next withdrawal. a) 10 b) 15 c) 20 d) 30

5. What will be the primary security in case of credit facilities under SME Credit Plus

a) Hyp. Of stocks b) Hyp. Of Book Debts c) Both of (a) and/or (b) d) None of above

6. Each withdrawal for the additional limits provided under SME Credit Plus, should be repaid within _____months

a) 1 b) 2 c) 3 d) 4

7. Under Artisan Credit Card Scheme, which type of borrowers will be preferred?

a) Artisans b) SSI units c) Artisans regd. with development Commissioner (handicrafts) d) None of above


152

8. Which type of facility will be provided under Artisan Credit Card Scheme?

a) Cash Credit b) Term Loan c) Demand Loan d) All of above

9. What is the maximum amount of finance available under Artisan Credit Card

Scheme?

a) Rs. 1.00 lac b) Rs. 1.50 lacs c) Rs. 2.00 lacs d) Rs. 2.50 lacs

10. _________% margin will be obtained for loan sanctioned over Rs. 25000/- and

up to Rs. 2 lacs under Artisan Credit Card Scheme?

a) 10 b) 20 c) Nil d) 25

11. Which collateral security shall be taken by the bank while financing under Artisan

Credit Card Scheme?

a) EM of immovable b) TPG c) cover under CGTMSE d) No security

12. The portion of limit used for purchase of tools etc. may be made repayable in

______years under Artisan Credit Card Scheme

a) 3 b) 5 c) 7 d) 9

13. What is target group of borrowers to be covered under Swarojgar Credit Card

Scheme?

a) Self employed persons b) Service sector c) SHGs d) All of above

14. Normally credit facilities to the tune of Rs. 25,000 per borrower can be

sanctioned under Swarojgar Credit Card Scheme. This amount can be raised to Rs. ________ in deserving cases

a) 30000 b) 40000 c) 50000 d) 60000

15. Which type of facility will be sanctioned under Swarojgar Credit Card Scheme?

a) Term Loan b) Cash Credit c) Composite Term Loan d) Demand Loan


153

16. Which method will be applied while assessing the limit under Swarojgar Credit

Card Scheme?

a) Nayak Committee b) Operating Cycle Method c) Traditional Method d) PBS Method

17. _________% margin will be obtained for loan sanctioned under Swarojgar Credit

Card Scheme?

a) 10 b) 20 c) Nil d) 25

18. Term Loan component under Swarojgar Credit Card Scheme will be repaid in

______years

a) 3 b) 5 c) 7 d) 9

19. The borrowers under Artisan Credit Card & Swarojgar Credit Card Scheme will

be covered under which scheme?

a) Super Surksha b) Swadhan c) Group Insurance d) Pension Plan

20. Which type of collateral security should be taken by the bank from the borrowers under Swarojgar Credit Card Scheme?

a) EM b) RM c) Specified Security d) No collateral

21. Whether SCC holder can be permitted to open a Saving bank account?

a) No. b) Yes c) If loan availed is Rs. 5000/- only d) If Only TL is availed

KEY TO ASSIGNMENT

SME Credit Plus, Artisan & Swarojgar Credit Card

1 2 3 4 5 6 7 8 9 10 11 d a a b d b c a c b d 12 13 14 15 16 17 18 19 20 21 a d a c b c b c d b


154

CGTMSE

1. CGTMSE stands for

a) Credit Guarantee Trust for Micro and Small Enterprises b) Credit Guarantee Fund Trust for Micro and Small Enterprises c) Credit Guarantee Trust for Manufacturing & service Enterprises d) Credit Guarantee Fund Trust for Manufacturing & service Enterprises

2. CGTMSE shall cover Credit Facilities (FB and / or NFB) sanctioned on or after 08.12.2008 extended by Member Lending Institutions to a single eligible borrower in the MSE Sector for Credit Facility not exceeding ______ by Scheduled Commercial Banks and select Financial Institutions by way of Term Loan and / or Working Capital Facilities, without any Collateral Security and / or Third party Guarantees

a) Rs. 25 lacs b) Rs. 50 lacs

c) Rs. 75 lacs d) Rs. 100 lacs

3. Advances to ____ are not covered by the Credit Guarantee Cover from CGTMSE as they are not defined as MSME as per the MSMED Act, though such loans upto Rs. 20 lacs will form part of Priority Sector Advance

a) Retail Traders b) Medium Enterprises c) Both a & b d) Transport Operators

4. As per RBI guidelines, banks are to extend Collateral free loans upto ____ to all

new units under MSE Sector (both Manufacturing & Service Enterprises as defined in MSMED Act, 2006). However, in all eligible cases, we have to obtain Credit Guarantee Cover from CGTMSE to protect the Bank’s interests

a) Rs. 2 lacs b) Rs. 5 lacs

c) Rs. 10 lacs d) Rs. 20 lacs

5. CGTMSE will cover __________type of credit facilities.

a) Fund based b) Non Fund based c) Either of two d) both a & b


155

6. Borrower under _______category will be covered under CGTMSE

a) Micro Enterprises b) Small Enterprises c) Medium Enterprise d) a & b

7. The maximum extent of guarantee cover under CGTMSE where credit facility is

upto Rs. 5.00 lacs is Rs._____lacs


8. All proposals for sanction of guarantee approvals for credit facilities above Rs. 50

lacs and upto Rs. 100 lacs will have to be rated _____and should be of_____grade.

a) externally, investment b) internally, satisfactory c) externally, AAA d) internally, investment

9. The maximum extent of guarantee cover under CGTMSE is Rs._____lacs

a) 50 b) 60 c) 65 d) 62.50

10. One time Guarantee Fee will be paid to CGTMSE in case of credit facility upto Rs. 5 lacs in North East Region is _______% & in other regions is _______%

a) 2.5, 3.00 b) 1.5, 2.00 c) 0.75, 1.00 d) 1.00, 1.50

11. One time Guarantee Fee will be paid to CGTMSE in case of credit facility above

Rs. 5 lacs to Rs. 50 lacs in North East Region is _______% & in other regions is _______%

a) 0.75, 1.50 b) 1.5, 2.00 c) 0.75, 1.00 d) 1.00, 1.50


156

12. One time Guarantee Fee will be paid to CGTMSE in case of credit facility above Rs. 50 lacs in North East Region is _______% & in other regions is _______%

a) 2.5, 3.00 b) 1.50, 1.50 c) 0.75, 1.00 d) 1.00, 1.50

13._____% as Annual Service Fee will be paid to CGTMSE in case of credit facility

upto Rs. 5 lacs.

a) 2.5 b) 1.50 c) 0.75 d) 0.50

14. _____% as Annual Service Fee will be paid to CGTMSE in case of credit facility

above Rs. 5 lacs.

a) 2.5 b) 1.50 c) 0.75 d) 0.50

15. Member Lending Institutions can lodge claim to CGTMSE, within a maximum period of _______ year from date of NPA.

a) 1 b) 2

c) 3 d) 4

16. Member Lending Institutions can lodge claim to CGTMSE, after lock in period of _______months either from the date of last disbursement or the date of issuance of guarantee cover, whichever is later


17. The Tenure of Guarantee Cover where working capital facilities alone are

extended is ________years.

a) 2 b) 3 c) 4 d) 5

18. Where both term loan & working capital is covered under the guarantee, the tenure of Guarantee Cover for working capital will be

a) 3 years b) co-terminus with the tenure of TL

c) 4 years d) 5 years


157

19. When a borrower is covered under Credit Guarantee Fund Trust, collateral

security will be taken as______% of the loan amount. a) 50 b) 75

c) Nil d) 33

20. Guarantee fee will be absorbed by bank for the credit facility limit upto _____

a) 2 lacs b) 5 lacs c) 10 lacs d) Fee to be recovered from all borrowers

KEY TO ASSIGNMENT

CGTMSE

1 2 3 4 5 6 7 8 9 10 b d c c d d b d c c 11 12 13 14 15 16 17 18 19 20 a b d c a c d b c a


158

TRADERS EASY LOAN

1. The target group for finance under Traders Easy Loan Scheme

is:______________

a. Wholesale/Retail traders and Small Business Enterprises b. Professional and self-employed c. Commission Agents d. All of above

2. Which type of facility can be granted under Traders Easy Loan Scheme?

a) Cash Credit b) Term Loan c) Demand Loan d) All of above

3. Under Traders Easy Loan, a borrower can be granted loan for a minimum

amount of Rs. ____lacs and maximum amount of Rs. _____lacs

a) 0.25, 500 b) 0.50, 500 c) 0.75, 500 d) 1.0, 500

4. Under Traders Easy Loan, a Rice Miller can be granted minimum loan for a Rs.

____lacs

a) 5 b) 10 c) 20 d) 25

5. Under Traders Easy Loan Scheme, units can be financed upto ____% of the

business needs or _________% of realizable value of property, within the over limit of Rs 500 lacs to meet capital expenditure and when sanctioned as TL/DL.

a) 90, 65, b) 75, 65 c) 75, 75 d) 75, 60

6. Under Traders Easy Loan Scheme, units can be financed upto ____% of the

Projected Turnover of the borrower or _________% of realizable value of property, within the over limit of Rs 500 lacs, when sanctioned as Cash Credit.

a) 50, 65, b) 20, 60 c) 25, 75 d) 20, 65


159

7. Under Traders Easy Loan Scheme, Rice Mill units can be financed upto ____% of the Projected Turnover of the borrower or 65% of realizable value of property, within the over limit of Rs 500 lacs and when sanctioned as Cash Credit.

a) 20-50 b) 25-30 c) 20-40 d) 15-25

8. Under Traders Easy Loan Scheme, Working Capital limit may be availed partly

as CC and partly as Demand Loan but the total limit will be arrived at on the basis of ___________

a) actual requirement b) Traditional Method c) Working Cycle Method d) Nayak Committee recommendations

9. Under Traders Easy Loan Scheme, TL is repayable in a period of______

Months in monthly, quarterly, half yearly basis depending upon the cash flows.

a) 50 b) 84 c) 60 d) 48

10. Under Traders Easy Loan Scheme, DL is repayable in a period of______ months in monthly, quarterly, half yearly basis depending upon the cash flows.

a) 50 b) 84 c) 60 d) 36

11. The borrowers who have already been sanctioned certain limits against mortgage of property under Mortgage Loan can be extended Traders Easy Loan against the residual value of the same property

a. Without any rider b. Provided the account is conducted satisfactorily for over 3 years c. Loan already availed and the proposed loan is within 65% of the realizable

value of property d. Both (b) & (c)

12. In case of Traders Easy loan, the collateral security in the form of Equitable

Mortgage of Land & Building for a minimum of ____% of loan amount will be taken and that should not be open plot within our outside the municipal area

a) 133 b) 143 c) 153 d) 163

13. Valuation of the property taken as collateral security for Traders Easy Loan

should be obtained once in ___years

a) 2 b) 3 c) 4 d) 5


160

14. Encumbrance Certificate pertaining to the property taken as collateral security for

Mortgage Loan to Traders should be taken once in ___months

a) 12 b) 24 c) 36 d) 48

15. At the time of sanction of Traders Easy Loan, stock statement will be obtained.

Additionally, it has to be obtained at ______intervals other than Demand Loan or Term Loan

a) Monthly b) Quarterly c) Half-yearly d) Yearly (28th Feb)

16. After disbursal of Traders Easy Loan, inspection will be carried out at

________intervals

a) Yearly, b) Half-yearly, c) Quarterly, d) Monthly,

17. Credit summations in the account should be atleast ________% of the CC limit in the account under Traders Easy Loan Scheme.

a) 100 b) 200 c) 50 d) 75

18. Working Capital credit facilities sanctioned under TEL scheme would be valid for a period of ______ years

a) 1 b) 2 c) 3 d) 5

19. At the time of renewal / annual review of the account, if the limits are assessed

to be less than the existing limits, and the borrower is not in a position to repay the excess amount in 90 days, the excess amount would be carved out as a demand loan and may be allowed to be repaid within a maximum of 24 monthly installments

a) 30, 12 b) 60, 18 c) 90, 24 d) 90, 36

20 The account will be subject to _________l review. The review will be based mainly on conduct of account. The ______ would be the reviewing authority.

a) Half yearly, RMME/ F.O. b) Half yearly, Branch Manager c) Yearly, RMME/ F.O d) Yearly, Branch Manager


161

KEY TO ASSIGNMENT TRADERS EASY LOAN

1 2 3 4 5 6 7 8 9 10 d d a a b d c d c d 11 12 13 14 15 16 17 18 19 20 d c b a b c b b c d


162

ASSIGNMENT Doctor Plus

1 Target group for Doctor Plus Scheme is _______

a) Medical practitioners of any discipline, b) Promoters of hospitals and nursing homes c) Pathological clinics, Poly clinics and X Ray labs etc. d) All of above

2 In the scoring model meant for Doctor Plus Scheme for a loan limit upto Rs. 25

lacs, a borrower should get minimum score of ________.

a) 40 b) 50 c) 60 d) 70

3 Who are eligible to avail credit facility under Doctor Plus Scheme?

a) Individuals b) Partnership Firms c) Corporates/Trusts d) All of above

4 Credit facility under Doctor Plus Scheme can be granted for _____

a) Buying Equipment b) Setting up of clinic/nursing home/poly-clinic/path. Lab/X-ray lab/drug

store/purchase of vehicle/computer etc. c) Expansion/Renovation of clinic and dispensary etc. d) Any of above

5 Which type of credit facility can be granted under Doctor Plus Scheme?

a) Cash Credit b) MTL c) Both (a) & (b) d) Demand Loan

6 In metro/ urban areas corporate/ partnership borrower can be sanctioned

maximum loan of Rs. ___lacs for Allopathic clinics under Doctor Plus Scheme.

a) 250 b) 500 c) 750 d) 1000

7 In other areas corporate/ partnership borrower can be sanctioned maximum loan

of Rs. ___lacs for Allopathic clinics under Doctor Plus Scheme.

a) 250 b) 500 c) 750 d) 1000


163

8 Individual borrower can be sanctioned maximum loan of Rs. ___lacs for

Allopathic clinics under Doctor Plus Scheme.

a) 250 b) 500 c) 750 d) 1000

9 Under Doctor Plus Scheme for Allopatic doctor , a sub ceiling of working capital limit is at ______% of total loan amount for upto Rs. 1.00 crore and ____% for above Rs. 1.00 crore

a) 15, 10 b) 10, 10 c) 10, 5 d) 5 ,10

10 Borrower can be sanctioned maximum loan of Rs. ___lacs for Non Allopathic

clinics under Doctor Plus Scheme of which a sub ceiling of working capital limit is at ______% of total loan amount.

a) 10 & 10 b) 20 & 10 c) 50 & 10 d) 20 & 5

11 The maximum repayment period under Doctor Plus Scheme for buying equipments and expansion/renovation in existing premises is ___________

a) 5 years including moratorium b) 5 years excluding moratorium c) 7 years including moratorium d) 7 years excluding moratorium

12 The maximum repayment period under Doctor Plus Scheme for setting up clinic,

nursing home, pathology lab is ___________

a) 5 years including moratorium b) 5 years excluding moratorium c) 7 years including moratorium d) 7 years excluding moratorium

13 Moratorium under Doctor Plus Scheme can be granted for a period of

____months

a) 3 b) 6 c) 12 d) 24

14 Dr. Shashi Puri, M.D. has approached our bank for credit facility to set up a clinic

to the tune of Rs. 15 lacs under Doctor Plus Scheme to set up a clinic. The loan will be collaterally secured by__________

a) Moveable Assets b) Immovable Property c) Third Party Guarantee d) Covered under CGTMSE


164

15 The units financed under Doctor Plus Scheme should be inspected at ____intervals.

a) Monthly b) Quarterly c) Half-Yearly d) Yearly

16 Margin required under Doctor Plus upto Rs. 10 lacs is ___%

a) 5 b) 10 c) 15 d) 20

17 Margin required under Doctor Plus above Rs. 10 lacs & upto Rs. 5 crores is

___%

a) 5 b) 10 c) 15 d) 20

18. Margin required under Doctor Plus above Rs. 5 crores is ___%

a) 25 b) 10 c) 15 d) 20

19. Minimum DSCR required under Doctor Plus is ___

a) 1.50:1 b) 1.60:1 c) 1.70:1 d) 1.75:1

20. For loan of Rs. 25,000/- & above minimum rating required under Doctor Plus is

a) SB5 b) SB6 c) SB7 d) SB8

KEY TO ASSIGNMENT Doctor Plus

1 2 3 4 5 6 7 8 9 10 d a d d c d b b c a 11 12 13 14 15 16 17 18 19 20 a c c d c c d a a d


165

ASSIGNMENT Transport Plus

1 Transport Plus scheme is for financing of fleet operators owning more

than _______ vehicles

a) 6 b) 8 c) 10 d) 25

2 Under Transport Plus Scheme, which type of transport vehicles can be

financed?

a) New b) Old c) Both (a) & (b) d) None of above

3 Credit facility under Transport Plus Scheme can be sanctioned to those

transport operators owning more than ______vehicles (including the proposed)

a) 5 b) 10 well maintained c) 15 well maintained d) No limit

4 A borrower can be sanctioned _________facility under Transport Plus

Scheme

a) Cash Credit b) Term Loan c) Demand Loan d) Both (a) & (b)

5 The borrower desirous of availing the credit facility under Transport Plus Scheme should have _______

a) CEO/Promoter age >18 years, should be IT assessee with 3 lacs

income b) 3 yrs experience in field with valid permit & satisfactory dealing with bank c) Reputed & IBA approved TO(truck) with well maintained >10 vehicle rising trend in income-profit in 2yr with profit of at least Rs. 3 lacs in the past 2 years. d) All of the above

6 Eligible amount of finance under Transport Plus Scheme is inclusive of:

a) Billing price of the vehicle b) Cost of body building c) Road Tax & Insurance d) All of the above


166

7 The Corporates can be sanctioned maximum CC & Term Loan Rs.

______lacs & Rs. _______Crores respectively under Transport Plus Scheme

a) 10, 7.5 b) 10.0, 10.0 c) 15, 15.0 d) No limit

8 Non-Corporate can be sanctioned maximum CC & Term Loan Rs. ______lacs & Rs. _______crores respectively under Transport Plus Scheme

a) 10, 7.5 b) 10.0, 10.0

c) 15, 15.0 d) No limit

9 Term Loan sanctioned under Transport Plus Scheme will be repaid (in EMIs) in maximum of ______years

a) 3 b) 5 c) 7 d) 8

10 The repayment of Term Loan under Transport Plus Scheme will start

after____ months of the first disbursement and PDC to be obtained for entire repayment period

a) 2 b) 4 c) 3 d) 5 11 Under Transport Plus Scheme, minimum Current Ratio should be ____

a) 1.00 b) 1.25 c) 1.33 d) 1.50

12 While analyzing the balance sheet of a unit for loan under Transport Plus

Scheme, the TOL/TNW ratio should not exceed ____

a) 2.00 b) 2.25 c) 2.50 d) 2.75

13 Minimum Average gross DSCR under Transport Plus Scheme should

be___

a) 1 b) 2 c) 3 d) 4


167

14 For advances under Transport Plus Scheme, promoters should contribute minimum ____% of the project cost, which can be reduced to ____% if 100% tie up.

a) 5, Nil b) 10, 5 c) 15, 10 d) 20, 10

15 Which of the following is correct in respect of the borrowers availing credit

facilities under Transport Plus Scheme

a) Value of orders in hand should be at least 30% of targeted annual income.

b) Sales/Turnover: increasing trend in the last two years. c) The firm should be earning profits in the last two years with rising

trend. d) All of above

16 Collateral security in the form of unencumbered vehicles/immovable

property under Transport Plus Scheme will be obtained for not less than ___% of the loan amount

a) 100 b) 75 c) 50 d) 25

17 If 100% tie-up arrangements are in place under Transport Plus Scheme,

the value of collateral security can be reduced to ___% of the loan amount

a) 100 b) 75 c) 50 d) waived

18 Receivable level under Transport Plus Scheme should not be more than

____months

a) 1 b) 4 c) 3 d) 5

19 Periodicity of Inspection under Transport Plus Scheme is _____ in a year a) Twice b) Once b) Thrice d) Quarterly 20 Loan to be immediately recalled and legal action to be initiated if

______months installments are in default. a) three b) four c) six d) no such instructions


168

KEY TO ASSIGNMENT Transport Plus

1 2 3 4 5 6 7 8 9 10 C a b d e d b a b c 11 12 13 14 15 16 17 18 19 20 C d b d d d d b b a


169

ASSIGNMENT Open Term Loan

1 SBI has launched Open Term Loan scheme for the

a) Service Unit b) Manufacturing Unit c) Trading Unit d) Both (a) & (b)

2 Under Open Term Loan Scheme, maximum loan to the tune of Rs. _____lac

can be sanctioned

a) 150 b) 250 c) 350 d) 450

3 Under Open Term Loan Scheme, maximum loan to the tune of Rs. _____lac

can be sanctioned for business development expenditure incurred for creation of intangible assets

a) 50 b) 100 c) 150 d) 200

4 Open Term Loan Scheme for service sector is not applicable to________

a) Hotels & Hospitals b) Educational Institutions c) Corporate/non-Corporate with ratings above SB7 d) Fleet Operators having less then 25 vehicles

5 Under Open Term Loan Scheme for Service Sector, loan cannot be granted

for a) Expansion, Modernization, Acquisition of hardware/software b) Substitution of high cost debts/high cost term debts of other banks/FIs c) Acquisition of ISO & other similar certifications d) Visits abroad for finalizing business deals, participating in promotion

exercises etc. e) Manufacturing of Hand tools

6 If the limits are not utilized or only partially utilized within twelve months of

sanction, it will be _______ a) renewed b) reviewed c) lapsed d) extended for further 12 months


170

7 Disbursement of Term Loan under Open Term Loan is on________

a) demand by borrower b) Within the currency of sanction c) Subject to certain basic financial information d) All of the above

8 Interest applicable on Open Term Loan is ________

a) as applicable to SIB advances b) Fixed rate of interest for fixed tenure c) Floating rate of interest d) As per credit rating of the borrower linked to Base Rate

9 Uniform margin at ________% is to be taken for Open term Loan

a) 10 b) 15 c) 20 d) 25

10 _____________will be taken as collateral security on Open Term Loan

a) Extension of charge over current assets, fixed assets or exploring additional tangible security

b) Personal guarantees of proprietors/partners/promoters c) Pledge of promoter’s equity in case of corporate d) All of the above as applicable on case-to-case basis.

11 Authroised branches for Open Term Loan are

a) SME intensive branches having RMME/SE b) All branches c) Branches headed by Scale IV & above d) Both (a) & (c)

12 Repayment period generally not to exceed _______years. Sanctioning authority may selectively consider repayment period up to _______ years where considered necessary. a) 3 & 5 b) 4 & 5 c) 4 & 6 d) 5 & 7

13 The period of repayment, will commence from the date of

a) Each Disbursement b) The first drawdown for each facility. c) Both of above d) None of above


171

14 Under SME Open Term Loan customer has the option of ______disbursements

for multiple purposes within 12 months from the date of sanction.

a) 5 b) 7 c) 12 d) multiple

15 Documents for the open Term Loan are to be optained

a) At the time of each disbursement b) Upfront for the sanctioned loan

KEY TO ASSIGNMENT Open Term Loan

1 2 3 4 5 6 7 8 d b b d e c d d 9 10 11 12 13 14 15 a d d a b d b


172

ASSIGNMENT

Rent Plus

1 Owners of residential buildings and commercial properties situated in________which are to be rented or already rented to MNC/Banks/Large & Medium size Corporates are eligible under Rent Plus.

a) Metro b) Urban c) Rural d) a, b & c

2 Owners of residential buildings and commercial properties situated in rural area are eligible under Rent Plus subject to prior administrative approval of _________.

a) Branch Manager b) AGM Region c) DGM (O& C) d) GM Network

3 Who are eligible to avail credit facility under Rent Plus Scheme?

a) Individuals b) Corporate c) Partnership Firm d) All of above

4 Rent Plus Scheme is targeted as per the eligibility criteria for those properties which are

a) Not to be rented b) Already rented to MNC/Banks/Large & Medium size Corporates c) Yet to be rented to MNC/Banks/Large & Medium size Corporates d) Both (b) & (c)

5 Apart from the specified lessees in the Rent Plus Scheme, powers for

considering the proposal pertaining to other type of lessees are vested with __

a) AGM (RACPC) b) AGM (SMECC) c) GM – Network d) DGM

6 Administrative clearance for extending credit facilities under Rent Plus Scheme is required from ______at Branches having incumbency upto OMMGS-III

a) AGM Region b) DGM – Module c) GM – Network d) No need


173

7 What is the minimum amount of finance available under Rent Plus Scheme?

a) Rs. 50,000 b) Rs. 1,00,000 c) Rs. 2,00,000 d) Rs. 5,00,000

8 Maximum amount to the tune of Rs. ____crore can be financed under Rent

Plus Scheme.

a) 2.00 b) 5.00 c) 10.00 d) 7.00

9 The maximum amount of finance under Rent Plus Scheme is restricted to

least of _____% of the total rent receivable for the residual lease period or _____% of realizable value of the property mortgaged as per latest valuation report

a) 85, 85 b) 75, 75 c) 60, 60 d) 95, 95

10 Discretion to allow finance upto___________of total rent receivable or

relizable value of the property is vested with the CGM of the Circle.

a) 85 b) 70 c) 65 d) 75

11 While computing quantum of finance, which item is deducted from the rent

receivable?

a) advance deposit b) Service Tax, TDS c) Estimated property tax, Statutory dues d) All of the above

12. Which type of credit facility will be sanctioned under Rent Plus Scheme?

a) Cash Credit b) Term Loan c) Overdraft d) CTL

13. The loan under Rent Plus Scheme will be repaid in equated instalments at the

same frequency at which rent is received in a maximum period of ____years or the residual lease period, whichever is less

a) 3 b) 5 c) 7 d) 9


174

14. The prepayment penalty under Rent Plus Scheme is______%

a) 0.5 b) 2 c) Nil d) 1

15 A loan sanctioned under Rent Plus Scheme will be recalled if the account

remains irregular for _____consecutive months

a) 3 b) 6 c) 9 d) 12

16 The periodicity of inspection by Field Officer for the loans sanctioned under

Rent Plus Scheme is at ______intervals


17 What will be the primary security in case of Rent Plus Scheme?

a) Assignment of Rent Receivables b) Hypothecation of Receivables c) Recording of power of attorney with the lessee d) Both (a) & (c)

18 The collateral security in case of Rent Plus Scheme will be first charge on

property rented out or any other acceptable property of a value not less than ____% of the loan amount

a) 100 b) 110 c) 120 d) 130

19 Before accepting Equitable Mortgage of the property as collateral security,

cognizance should be given to ______

a) Genuineness of Title Deed b) Valuation Report from Bank’s approved valuer c) Search Report-cum-Title Verification Report from Bank’s approved lawyer d) All of above


175

20 Where our Bank is the tenant & loan amount does not exceed Rs. _______lacs, Sanctioning Authority may waive the stipulation of equitable mortgage subject to condition that the lease deed should not expire during the currency of the loan.

a) 10 b) 20 b) 30 d) 25

21 In addition to the Collateral Security, __________of partners/directors to be

obtained in case of Partnership firm/Company

a) Surety b) Guarantee c) Personal Guarantee d) no need of any other security

22 In case of public limited companies, if the directors are not willing to extend personal guarantee and the collateral in the form of equitable mortgage is _____% of the loan amount, the sanctioning authority may waive personal guarantee.

a) 100 b) 50 c) 200 d) 120

23 Waiver of equitable mortgage may be allowed by CCC-I, provided the lessee

is

a) Reputed Corporate e.g Bank/PSU maintaining consistency in profitability for at least 3 years

b) Agreeable to execute the tripartite agreement c) Integrity is beyond doubt & Personal guarantee of individuals/

partners/directors is available d) All of the above

KEY TO ASSIGNMENT Rent Plus

1 2 3 4 5 6 7 8 9 10 d d d d c a a c c b 11 12 13 14 15 16 17 18 19 20 d b c d a c d c d d 21 22 23 c d d


176

ASSIGNMENT

School Plus & Loan to Pvt. Builders

1 Under School Plus Scheme, which of followings are eligible to avail credit facility

a) Govt. Aided Schools and Private Schools/colleges b) Schools run by trusts of good standing c) Technical institutes recognized by AICTE/NBA/MCI d) All of the above

2 The purpose for which, loan can be granted under School Plus Scheme is ____

a) Purchase of land for building/play ground, Construction/repair/renovation of school building

b) Purchase of computer/equipments/books etc. c) Purchase of furniture/fixtures d) All of above

3 For which of the following purposes, loan cannot be granted under School-Plus

Scheme

a) For Purchase of Laboratory/sports equipment b) For Purchase of equipment for mid day meal scheme c) For Purchase of buses for student transportation d) None of above

4 Which type of credit facility can be granted under School Plus Scheme?

a) Cash Credit b) Term Loan c) Both (a) & (b) d) Overdraft

5 Under School Plus Scheme, maximum loan to the tune of Rs. _____lac can be

granted

a) 10 b) 20 c) 25 d) No Cap

6 DSCR under School Plus Scheme should not be below ______

a) 1.25 b) 1.50 c) 1.75 d) 2.00


177

7 Loan under School Plus Scheme should normally be repaid in ___to ____EMIs

depending upon the quantum of the loan a) 36, 60 b) 36, 84 c) 36, 96 d) 36, 120

8 The loan under School Plus Scheme will be granted at _____

a) Fixed Rate of interest Only b) Floating rate of interest c) Either of (a) or (b) d) None of above

9 A borrower has to bring a minimum of ___% as margin to avail credit facility

under School Plus Scheme

a) 10 b) 15 c) 20 d) 25

10 Collateral security of land and building and other immovable assets of the

school or guarantor for ___% of the loan amount for loans of Rs. 2 lacs to Rs. 10 lacs and EM of other immovable assets for loans above Rs. 10 lacs will be taken under School Plus Scheme

a) 50 b) 30 c) 20 d) 75

11 Private Builders can be granted finance provided their project should be

completed in _____to ____months

a) 12, 18 b) 18, 24 c) 24, 30 d) 30, 36

12 Which type of credit facility can be granted to private builders for completion of

their project

a) Cash Credit b) Overdraft c) Term Loan d) CTL

13 M/s Shivalika Builders has approached our bank for finance. What is the

maximum loan amount that can be granted to them

a) 50% of project cost or 5 times of his net worth or Rs. 5 crore, whichever is less

b) 60% of project cost or 6 times of his net worth or Rs. 5 crore, whichever is less


178

c) 70% of project cost or 7 times of his net worth or Rs. 5 crore, whichever is less

d) 80% of project cost or 8 times of his net worth or Rs.5 crore, whichever is less

14 Under Finance to Private Builder Scheme, the loan is to be repaid in maximum

of ____months

a) 12 b) 24 c) 36 d) 60

15 Minimum margin required for loan to private builder is ____% of the project cost

a) 10 b) 15 c) 25 d) 50

KEY TO ASSIGNMENT

School Plus & Loan to Pvt. Builders

1 2 3 4 5 6 7 8 9 10 d d d b d d b a b c 11 12 13 14 15 b a a c d


179

ASSIGNMENT

Construction Equipment Loan-JCB India

1. Construction Equipment Loan Scheme has been launched for purchase of:

a) Machinery b) Stock of Raw Material c) purchase of construction Equipment manufactured by JCB d) Receivable

e) Which type of equipment is covered under Construction Equipment Loan

Scheme?

a) Loader b) Excavators c) Cranes d) All of above

f) Who are eligible under Construction Equipment Loan Scheme?

a) Individual b) Firms c) Companies d) All of above

4. Construction Equipment Loan will not be granted to borrowers having Credit

Rating below:

a) SB 6 b) SB 8 c) SB 9 d) no such stipulation

5. Credit Rating is not required for advance below Rs.____lacs.

a) 50 b) 25 c) 10 d) no such stipulation

6. Which type of credit facility can be provided under Construction Equipment Loan

Scheme?

a) Demand loan b) Cash Credit c) Term Loan d) Working Capital Demand Loan


180

7. What is the minimum quantum of advance that can be provided under Construction Equipment Loan Scheme?


8. What is the maximum quantum of advance that can be provided under Construction Equipment Loan Scheme?


9. Disbursement of advance under Construction Equipment Loan Scheme will be

by___

a) Credit to SB account of the borrower b) Credit to Current account of the borrower c) ECS d) direct to supplier/dealer

10. Moratorium period allowed under Construction Equipment Loan Scheme is___months

a) 3 b) 6 c) 12 d) 9

11. Term Loan granted under Construction Equipment Loan Scheme is to be repaid

in ____

a) Quarterly instalments + Intt b) lumpsum c) EMI d) Monthly instalment + intt.

12. Term Loan upto _________lacs granted under Construction Equipment Loan Scheme is to mandatorily covered undet CGTMSE

a) 20 b) 25 c) 30 d) 50

13. Term Loan granted under Construction Equipment Loan Scheme is to be fully

repaid within ____years including moratorium period

a) 3 b) 9 c) 4 d) 5


181

14. Borrower is required to contribute Margin of _____% under Construction Equipment Loan Scheme,

a) 25% in case of borrowers who are new to this line b) 15% in case of buyers having up to 9 machines c) 5% in case of buyers already having more than 9 machines d) either a or b or c whichever is applicable

15. Rate of interest applicable for credit facility granted under Construction

Equipment Loan Scheme is:

a) 4.25% above Base Rate for borrower with Credit Rating of SB1 to SB5 b) 4.75% above Base Rate for borrower with Credit Rating of SB6 to SB9 c) 4.75% above Base Rate for borrower which are not subject to rating d) either a or b or c whichever is applicable

16. ___% penalty will be charged for the amount and period in default under

Construction Equipment Loan Scheme is:

a) 3 b) 1 c) 2 d) no penalty

17. Which type of Primary Security will be taken by the bank in case of Construction

Equipment Loan Scheme?

a) Hypothecation of Equipment financed from the Bank Loan b) Registration of charges with ROC ( In case of vehicles) c) No such requirement d) a & b

18. Which type of Collateral Security will be taken by the bank in case of

Construction Equipment Loan Scheme?

a) Hyp. of other unencumbered equipments b) EM of immoveable property c) a or b to the extent of atleast 25% of the loan amount d) Not to be insisted upon

19. Inspection will be done at______interals for ensuring end use of fund of

Construction Equipment Loan

a) monthly b) half yearly c) quarterly d) yearly


182

20. ______type of Insurance will be obtained in case advance granted under Construction Equipment Loan

a) Fire b) Theft c) Comprehensive d) not required

KEY TO ASSIGNMENT CONSTRUCTION EQUIPMENT LOAN

1 2 3 4 5 6 7 8 9 10 c d d c b c c d d a 11 12 13 14 15 16 17 18 19 20 c b c d d c d c b c


183

SBI Shoppe, SBI Shoppe Plus & Arthia Plus

1 Under SBI Shoppe Scheme, present and prospective owners of __________can be granted credit facility

a) Shops/Offices/Show-rooms b) Training/Service/Garage Centre c) C.A/Consultants d) All of above

2 Who are eligible to avail credit facility under SBI Shoppe Scheme?

a) Individuals/Partnership b) Trusts c) Franchisees d) All of above

3 Which type of credit facility will be granted under SBI Shoppe Scheme?

a) Demand Loan b) Cash Credit c) Term Loan d) All of above

4 Loan under SBI Shoppe can be granted for __________

a. Purchase of new/old shops/establishment/offices/showroom etc. b. Repair/Renovation/Modernisation c. Furniture/Fixtures/Electrical fittings/Accessories for the shop/office etc. d. All of above

5 What is the maximum quantum of finance that can be sanctioned under SBI

Shoppe?


6 What is the moratorium period provided in case of Term Loan facility under SBI

Shoppe?


7 Term Loan sanctioned under SBI Shoppe should be repaid in _______years

a) 3 to 5 b) 3 to 7 c) 5 to 7 d) 7 to 9

8 In case of loan sanctioned under SBI Shoppe, minimum DSCR should be ____

a) 1.00 b) 1.25 c) 1.50 d) 1.75


184

9 In case of the rented property, which document in addition to other documents should be obtained, while granting loan under SBI Shoppe?

a) AB 3 b) No objection Certificate c) No lien letter d) Both (b) and (c)

10 SBI Shoppe Plus Scheme is the combination of _______________

a) SBI Shoppe & H/ loan b) SBI Shoppe & Car loan c) SBI Shoppe & P/Loan d) SBI Shoppe & Edu. Loan

11 Target group for SBI Shoppe Plus Scheme is present and prospective owners of

a. Shops/offices/show rooms b) Training Centres/Garages c) Offices for CA/Consultants d) All of above

12 Which type of credit facilities will be granted under SBI Shoppe Plus Scheme?

a) 2 Cash Credit b) 2 Term Loans c) 1 C/C and 1 T/L d) 2 Demand Loans

13 Commission Agents (Arthias) __________can be financed under Arthias Plus

Scheme?

a) Dealing with Agr. Produce b) Regd. with Market Committee c) Possess a license from DFSD d) All of above

14 Borrowers will be financed against __________ under Arthia Plus

a) Stock b) Receivables c) Both (a) and (b) d) None of above

15 Which type of credit facility can be granted under Arthia Plus Scheme?

a) Cash Credit (Hyp. of Book Debts) b) Term Loan c) Demand Loan d) CTL

16 What is the maximum amount that can be financed under Arthia Plus Scheme?


17 The margin required under Arthias Plus is_________%

a) 25 b) 20 c) 40 d) 10


185

18 Collateral Security for loan amount upto Rs. 25 lacs under Arthias Plus Scheme

will be equitable mortgage of Residential/Commercial property with worth _____times of the loan amount

a) 1 b) 2 c) 3 d) 1.5

19 Collateral Security for loan amount above Rs. 25 lacs under Arthias Plus Scheme will be equitable mortgage of Residential/Commercial property with worth _____times of the loan amount

a) 1 b) 2 c) 3 d) 1.5

20 Assessment under Arthias Plus for loan amount above Rs. 25 lacs & upto Rs. 50

lacs will be as per_________

a) Traditional method b) Scoring Sheet c) CRA Model d) Need based

21 The repayment of credit facility sanctioned under Arthias Plus Scheme, will be within ______months

a) 3 b) 6 c) 9 d) 12

KEY TO ASSIGNMENT SBI Shoppe, SBI Shoppe Plus & Arthia Plus

1 2 3 4 5 6 7 8 9 10 d d c d d a b d d a 11 12 13 14 15 16 17 18 19 20 21 d b d b a d c d b c b


186

ASSIGNMENT SME Car Loan

1. Car loan can be granted to _______under Car Loan Scheme to SME units

a) Unit/Promoters/Partners/Senior Executive b) Family Members (Spouse & Children) of Promoters/Partners c) Unit d) SME CA holder of Bank, other SME Clients subject to advising the

sanction to the Bank in which they are having a loan account. e) Any of (a) ,(b) (c) & (d) individually or jointly with unit

2 For availing car loan under Car Loan to SME Units, an individual/joint applicant

should have a minimum NAI of Rs. ______

a) 75,000 b) 1,00,000 c) 1,25,000 d) 1,50,000

3. If the car loan to SME unit is availed in the name of the Unit_______will

guarantee the repayment of loan

a) Company b) Promoter(s) c) Partner(s) d) All of the above as applicable

4. Whenever Senior Executive joins as _________ his NAI shall be clubbed with

the ______of joint applicant )Promoter/Partner

a) applicant & EMI b) borrower & NMI c) co-applicant & NMI d) cannot be granted to Senior Executive

5. Senior Executive under Car Loan to SME Units is defined as employee in ____

a) Top Management b) Directors c) Employee holding the position of responsibility d) Any of the above


187

6. For purchasing a new car, loan can be sanctioned for a maximum of ____times of NAI of the borrower under Car Loan to SME Units

a) 1.5 b) 2.5 c) 3.5 d) 4.5

7. Margin under Car Loan to SME Units is __________% of the “ on road price” of the vehicle

a) 10 b) 20 c) 5 d) 15

8. Under Car Loan to SME Units, a maximum loan of Rs. ____ lacs can be

sanctioned for purchase of new vehicle

a) 10 b) 15 c) 20 d) No upper limit

9. For sanctioning a car loan under Car Loan to SME Units, EMI/NMI percentage

should not exceed ______% and authority vest with the rank of AGM to relax it upto______%

a) 60 & 50 b) 40 & 50 c) 50 & 65 d) 50 & 60

10. Processing fee charged under Car Loan to SME units is _____% subject to

minimum Rs._________ & maximum Rs.____________

a) 0.55, 1000/- & 50,000/- b) 0.50, 500/- & 10,000/- c) 0.55, 1000/- & 10,000/- d) Nil

11. Under SME Car Loan inspection in regular account is to be undertaken on

______basis

a) monthly b) quarterly c) half yearly d) waived


188

12. For purchase of a new car under Car Loan to SME Units, loan sanctioned will be repaid in _____years a) 5 b) 7 c) 8 d) 10

13. As an evidence of income, copy of income tax return for the last ____financial

year(s) should be taken before sanctioning a loan under Car Loan to SME Units.

a) 1 b) 2 c) 3 d) 5

14. If an account remains irregular beyond a period of 30 days, a penal interest @ ___% p.m. over and above the applicable rate will be charged under Car Loan to SME Units.

a) 1 b) 2 c) 3 d) 5

15. Pre payment penalty will be charged @ ___% of the loan prepaid in case of

Car Loan to SME Units.

a) 1 b) 2 c) 3 d) 5

16. Under Car Loan to SME Units, a maximum loan of Rs. ____ lac can be

sanctioned for purchase of used vehicles

a) 10 b) 15 c) 20 d) 25

17. The vehicle purchased under Car Loan to SME Units is to be kept

comprehensively insured for the market value or at least _______% above the loan amount

a) 110 b) 100 c) 120 d) 10

18. Loan on fixed rate of interest under Car Loan to SME Units, will be sanctioned for amount exceeding Rs _____lacs.

a) 5 b) 10 c) 15 d) Not to be sanctioned


189

19. Reimbursement of unencumbered vehicle not > than ________ can be done

in case of Car Loan to SME Units.

a) 5 years b) 2 years c) 7 years d) 1 year

20. Car Loan to those SME Units ___________ should be restricted.

a) which are weak or have turned NPA or likely to become NPA b) The relations between branches & promoter(s) is soured c) Wherever it is proposed to initiate legal action against the unit/promoters d) All of the above

KEY TO ASSIGNMENT SME Car Loan

1 2 3 4 5 6 7 8 9 10 e b d c d b d d d b

11 12 13 14 15 16 17 18 19 20 d b b a b b d d b d


190

ASSIGNMENT Rice Mill Plus & Dall Mill Plus

1 Existing Profit making rice shellers with CRA rating of _____and above can be

covered under Rice Mills Plus Scheme

a) SB 4 b) SB 6 c) SB 8 d) SB 9

2 Credit facilities under Rice Mills Plus Scheme can be provided for _________

a) Machinery b) Modernisation of building c) Working capital needs d) All of above

3 Which type of credit facilities can be provided under Rice Mills Plus Scheme?

a) C/C, T/L & Bill limit b) L/C & B/G c) SME Credit Plus d) All of above

4 How much advance can be granted under Rice Mills Plus Scheme?

a) Rs. 1.00 crore b) Rs. 5.00 crore c) Rs. 10.00 crore d) No upper limit

5 A moratorium of _____months can be granted in case a borrower is sanctioned

Term Loan under Rice Mills Plus Scheme? a) 6 b) 9 c) 12 d) 18 6 Term Loan sanctioned under Rice Mills Plus Scheme will be repaid in ____years

excluding the moratorium period

a) 5-7 b) 5-10 c) 7-9 d) 9-12

7 Under Rice-Mills Plus, which additional credit facilities can be provided to the

borrowers

a) Cash Credit – Book Debts b) Limit against by-products and gunny bags c) Limit against other grains during lean period d) All of above


191

8 Rice Mills Plus Scheme has been extended to new units established by our existing borrowers where:

a. Management of the new units lies with our existing borrowers b. At least 50% of the partners of new units are our existing borrowers &

known to the bank. c. CRA rating of the unit is not below SB 7 d. All of above

9. Under Rice Mills Plus for loans upto Rs. 5 lacs, collateral security will be

taken as Equitable mortgage of property/tangible security belonging to borrower/guarantor valued not less that _________% of loan amount

a) 33% b) 50% c) 75% d) Nil 10. Under Rice Mills Plus for loans over Rs. 5 lacs, and Unit having credit rating SB-

7 & above, collateral security will be taken as Equitable mortgage of property/tangible security belonging to borrower/guarantor valued not less that _________% of loan amount

a) 33% b) 50% c) 75% d) 60% 11. Under Rice Mills Plus for loans over Rs. 5 lacs, and Unit having credit rating SB-

8 & below collateral security will be taken as Equitable mortgage of property/tangible security belonging to borrower/guarantor valued not less that _________% of loan amount

a) 33% b) 50% c) 75% d) 60% 12 Units having CRA rating of _______ can be granted loan under Dal Mills Plus

Scheme

a) SB 4 and above b) SB 6 and above c) SB 8 and above d) SB 9 and above

13 Credit facility under Dal Mills Plus Scheme can be granted for the purpose of:

a) Machinery b) Building c) Working Capital d) All of above


192

14 Which type of credit facility can be granted under Dal Mills Plus Scheme?

a) Term Loan & CC b) L/C & BG c) SME Credit Plus d) All of above

15 For Term Loan component under Dal Mills Plus Scheme, a moratorium of

maximum _____months can be granted

a) 6 b) 9 c) 12 d) 18

16 Term Loan under Dal Mills Plus Scheme will be repaid in ______years excluding

moratorium period

a) 3 to 5 b) 5 to 7 c) 7 to 9 d) 9 to 12

17 Which CRA model will be used for loan under Dal Mills Plus Scheme?

a) Simplified b) Regular c) Trade d) All of above

18 Under Dal Mills Plus Scheme, how much loan can be granted?

a) Rs. 1.00 crore b) Rs. 2.00 crore c) Rs. 3.00 crore d) No upper limit

19 Collateral Security under Dal Mill –Plus for loan upto Rs. 5 lacs is_____and

above Rs. 5 lacs_________of the loan amount

a) 10%, 50% b) 20%, 80% c) nil, 80% d) nil, 75%

KEY TO ASSIGNMENT Rice Mill Plus & Dall Mill Plus

1 2 3 4 5 6 7 8 9 10 d d d d c a d d d b 11 12 13 14 15 16 17 18 19 d d d d c b a d d


193

ASSIGNMENT

Standby Line of Credit (Working Capital), Corporate Loan & Standby Line of Credit for Purchase of Vehicle

1 What is the target group for Standby Line of Credit (Working Capital) Scheme?

a) SSI units b) Exporting unit c) C & I Units d) All of above

2 To become eligible for SLC (WC), the unit should have a minimum CRA rating of

________

a) SB 5 b) SB 6 c) SB 7 d) SB 8

3 A maximum of ____% of Fund Based and Non-Fund Based Limit or Rs.

____crore, whichever is lower, can be granted under SLC (WC)

a) 15, 5 b) 20, 5 c) 25, 5 d) 30, 5

4 Which type of facility will be granted under SLC(WC) ?

a) Cash Credit b) EPC c) bills discounting against stock, receivables etc d) All of the above

5 Which of the following statement is correct in respect of SLC (WC)

a) SLC(WC) should be calculated separately for peak and non peak limits b) Additional interest of 1% over the regular limit will be charged c) Discretion to waive the additional cost rests with the controllers d) All of above

6 Which amongst the following is not correct in respect of SLC (WC)

a) It will be granted generally for a period of 2 months at any instance b) SLC(WC) cannot be extended to units who have utilized SME Credit Plus

facility c) It will be granted to meet contingency needs arising out bunching or

orders, delay in shipment/realization of receivables, sudden increase in raw material costs, mismatch in cash flows

d) None of above


194

7 Corporate Loan Scheme covers customers of the following sectors: a) Agr b) SBF c) C&I & SSI d) Both (b) & (c)

8 The purposes for which Corporate Loan can be granted, are _________

a) Repayment of High cost debt b) Acquisition of Trade mark etc. c) Shoring of NWC d) All of above

9 Which type of credit facility will be provided under Corporate loan?

a) Clean Term Loan b) Clean Cash Credit c) Term Loan d) Cash Credit

10 Which type of borrowers are covered under Corporate Loan?

a) Corporate b) Non-Corporate c) Trust/HUF d) Both (a) & (b)

11 A minimum of Rs. ____lacs will be granted under Corporate Loan?

a) 25 b) 50 c) 75 d) 100

12 A non-corporate borrower can be granted a maximum of Rs. _____crore

under Corporate Loan Scheme

a) 5 b) 10 c) 15 d) 25

13 How much amount can be financed under Corporate Loan Scheme to a

corporate borrower? a) Rs. 10 crore b) Rs. 25 crore c) Rs. 100 crore d) No limit

14 Repayment period of the Term Loan granted under Corporate Loan

Scheme will not exceed _______years a) 3 b) 5 c) 7 d) 9

15 For availing credit facility under Stand By Loan to Corporate for Purchase of

Vehicles Scheme, the CRA rating of the unit should be ________and above

a) SB-5 b) SB-6 c) SB-7 d) SB-8


195

16 Which type of credit facility will be provided under Stand By Loan to Corporates for Purchase of Vehicles Scheme?

a) Demand Loan b) Short Term Loan c) Term Loan d) CTL

17 The borrower will be granted ____% of the fund based limit not exceeding Rs.

____lacs under Stand By Loan to Corporates for Purchase of Vehicles

a) 10, 25 b) 10, 30 c) 10, 50 d) 10, 100

18 The loan sanctioned under Stand By Loan to Corporates for Purchase of

Vehicles will be repaid in ______years

a) 3 b) 5 c) 7 d) 9

19 The loan under Stand By Loan to Corporates for Purchase of Vehicles will be

granted for _____vehicles

a) New b) Old c) Both (a) & (b) d) None of above

20 The margin under Stand By Loan to Corporates for Purchase of Vehicles is____% of the cost of the vehicle including tax and insurance

a) 10 b) 15 c) 20 d) 25

KEY TO ASSIGNMENT

Standby Line of Credit (Working Capital), Corporate Loan & Standby Line of Credit for Purchase of Vehicle

1 2 3 4 5 6 7 8 9 10 D c a d d d c d a d 11 12 13 14 15 16 17 18 19 20 A b d a c c a b a c


196

Paryatan Plus & Working Capital Finance for Trade & Services sector 1 Under Paryatan Plus, the credit facility can be sanctioned for ________

a) Construction/renovation/modernization/expansion to Hotels/Yatri Nivas

/Dharmshalas/restaurants/coffeehouses /ice-cream parlours /amusement parks/ropeways/health clubs etc.

b) Purchase of luxury buses/coaches/cars/vans etc. c) Purchase of house boats/luxury boats d) All of above

2 Which of the following are not eligible to avail the credit facility under

Paryatan Plus Scheme?

a) Individuals/Partnership b) Corporates c) Trust d) HUF

3 The target group for Paryatan Plus Scheme will be ________

a) Hospitality/Transportation b) Travel/Tour operators c) Adventure/Religious tourism d) All of above

4 Which type of credit facility can be granted under Paryatan Plus Scheme?

a) C/C b) T/L c) L/C & B/G d) All of above

5 Minimum amount to be financed under Paryatan Plus ?

a) Rs. 1 lac b) Rs. 2 lacs c) Rs. 3 lacs d) No such limit

6 ____% Margin to be obtained for financing new vehicles under Paryatan Plus

a) 10 b) 5 c) 20 d) 40

7 ____% Margin to be obtained for financing old vehicles under Paryatan Plus

a) 10 b) 5 c) 20 d) 40

8 Which of the following is incorrect regarding Paryatan Plus Scheme

a) Maintenance of C/A to route all receipt is mandatory b) Appropriate licenses should be obtained


197

c) Only skilled/trained persons eligible d) There is an upper ceiling of Rs. 7.50 crore for advance

9 In case of Term Loan sanctioned under Paryatan Plus Scheme, a start up period not exceeding ____months, can be granted

a) 6 b) 12 c) 18 d) 24

10 Term loan sanctioned under Paryatan Plus Scheme, will be repayable within

______years including start up period not exceeding 18 months

a) 3 to 7 b) 5 to 7 c) 7 to 9 d) 9 to 12

11 While sanctioning term loan for the purchase of vehicle under Paryatan Plus Scheme, minimum DSCR should be_____

a) 1.5 b) 1.75 c) 2.0 d) 2.25

12 We can provide credit facility for old vehicles less than ___years under

Paryatan Plus Scheme

a) 5 b) 6 c) 7 d) 8

13 Collateral security for a minimum of ___% of the loan amount in the form of immovable property or liquid security i.e. TDRs, NSCs and KVPs etc., will be taken for credit facilities under Paryatan Plus Scheme

a) 50 b) 75 c) 100 d) 125

14 Which type of units showing profits during the last 3 year and having CRA

rating of SB 4 and above can be granted working capital finance liberally under Trade & Service Sector?

a) Retail & Wholesale traders in agricultural and industrial

Commodities b) Dealers in consumer durables/consumer goods/vehicles c) Big land lords d) Both (a) & (b) above


198

15 Working capital under Trade & Services Sector can be granted ____% of

Projected Annual Turnover (PAT) subject to a maximum of Rs. ____crore

a) 10, 2 b) 15, 5 c) 20, 10 d) 25, 15

16 While granting working capital finance under Trade & Services sector, it

should be ensured that projected annual turnover should not be more than ____% of the last year turnover

a) 10 b) 15 c) 20 d) 25

17 While granting working capital finance under Trade & Services sector_____%

Collateral security will be taken.

a) 100 b) 50 c) 20 d) No security is required

18 Out of prescribed Collateral Security under working capital finance for Trade & Services sector_____% Collateral security will be taken as mortgage of immovable property

a) 50 b) 25 c) 33 d) No such stipulation

19 M/s. Oriental Handloom Co., a trading unit, desirous of working capital limit

with CRA rating of SB 8-9, has offered collateral security to the extent of 75% of the loan, how much concession in rate of interest over and above CRA rating, can be granted to the unit?

a) 0.25% b) 0.50 c) 0.75% d) 1.0%

KEY TO ASSIGNMENT Paryatan Plus & Working Capital Finance for Trade & Services sector

1 2 3 4 5 6 7 8 9 10 d d d d b c d d c a 11 12 13 14 15 16 17 18 19 a a a d b d b c b


199

ASSIGNMENT

Flexi Loan for Trade & Service & General Purpose Term Loan for SSI 1 Borrowers with __________ are eligible to avail credit facility under Flexi Loan

for Trade and Services Scheme?

b) CRA rating of SB 10 and above c) Cash profits in each of the preceding 3 years d) Net Profit in the last year

d) All of above

2 Flexi Loan for Trade and Services can be granted for the purpose of ________

a) Stocks/book debts b) Land and building c) Vehicles/Machinery d) All of above

3 Which type of credit facility will be granted under Flexi Loan for Trade and

Services Scheme?

a) Term Loan b) Cash Credit c) Overdraft d) Demand Loan

4 What is the minimum amount that can be sanctioned under Flexi Loan for Trade

and Services Scheme?


5 Under Flexi Loan for Trade and Services Scheme, a borrower can be sanctioned

a maximum loan to the tune of Rs. _____lacs

a) 50.00 b) 10.00 c) 25.00 d) 100.00

6 For loan of above Rs 25.00 lacs under Flexi Loan for Trade and Services Scheme, which CRA model will be used?

a) Simplified Non-Trade b) Regular Trade c) Simplified Trade d) Regular Non-Trade

7 Minimum DSCR for loan under Flexi Loan for Trade and Services Scheme should be:____

a) 1.25 b) 1.50 c) 1.75 d) 2.00


200

8 Term Loan under Flexi Loan for Trade and Services Scheme, will be repaid in __


9 The repayment period of term loan under Flexi Loan for Trade and Services

Scheme can be extended upto ____years in deserving cases

a) 3 b) 5 c) 7 d) 8

10 TOL/TNW ratio of the unit for finance under Flexi Loan for Trade and Services

Scheme should not be more than ____

a) 1 b) 2 c) 3 d) 4

11 Total Long Term Liability to equity ratio of the unit for finance under Flexi Loan

for Trade and Services Scheme should not be more than ____

a) 1: 1 b) 2: 1 c) 3: 1 d) 4: 1

12 Current Ratio of the unit for finance under Flexi Loan for Trade and Services

Scheme should not be less than ____

a) 1 b) 1.25 c) 1.33 d) 1.50

13 Which type of SSI units can be sanctioned loan under General Purpose Term

Loan for SSI Sector Scheme?

a) CRA rating SB 7 & above b) Profits in all the preceding 3 yrs. c) No default history d) All of above

14. Which type of facility can be granted under General Purpose Term Loan for SSI

Sector Scheme?

a) Cash Credit b) Term Loan c) Demand Loan d) Overdraft

15 Credit facility under General Purpose Term Loan for SSI Sector Scheme, can be

granted for ___________________

a) Shoring of NWC b) R&D c) Payment of High cost debt d) All of above


201

16 Maximum loan under General Purpose Term Loan for SSI Sector is

Rs.___lacs a) 10 b) 50 b) 25 d) 100 17 Term loan sanctioned under General Purpose Term Loan for SSI Sector

Scheme, will be repaid in ______years

a) 3 b) 5 c) 7 d) 6

18 The repayment period of term loan granted under General Purpose Term Loan

for SSI Sector Scheme can be extended upto _______years in deserving cases

a) 3 b) 5 c) 4 d) 7

19 While arriving at TNW for sanctioning loan under General Purpose Term Loan for

SSI Sector Scheme, loans from friends and relatives will be treated as _____

a) Capital b) Quasi-Capital c) Current Liability d) Term Liability

KEY TO ASSIGNMENT Flexi Loan for Trade & Service & General Purpose Term Loan for SSI

1 2 3 4 5 6 7 8 9 10 d d a a d c b a d d

11 12 13 14 15 16 17 18 19 20 b a d b d b a b b


202

ASSIGNMENT NPA MANAGEMENT & RECOVERY PROCESS-I

1. NPA stands for__________

a) Non Payment of Account b) Non Payment of Asset c) Now Performing Asset d) Non Performing Asset

2. SMA stands for___________

a) Specially Managed Accounts b) System Managed Accounts c) Some Mentioned Accounts d) Special Mentioned Accounts

3. SMA is a category between___________& _____________

a) Standard, Doubtful b) Doubtful, Loss c) Standard, Substandard d) Loss, Doubtful

4. IRAC stands for___________

a) Income recognition & Advances Classification b) Interest recognition and classification c) Income Recognition and Asset Classification d) None of the above-

5. INCA stands for__________

a) Interest not be collected account b) Interest not be counted against c) Interest not collected account d) None of the above

6. URIPY stands for_____________

a) Under realized interest of previous year b) Unrealized interest for previous year c) Under realized income of previous year d) None of the above


203

7. A term loan will be treated NPA, if any Interest and/or instalment of principal remain ‘overdue’ for a period of more than _________days a) 30 b) 60 c) 90 d) 180 8. A Cash Credit or Overdraft Account will be treated NPA, if account remains ‘out of order’ for a period of more than_________days. a) 30 b) 60 c) 90 d) 180 9. Out of Order means:

i) If the outstanding balance remains continuously in excess of the sanctioned limit/drawing power OR

ii) If the outstanding balance in the principal operating account is less than the sanctioned limit/drawing limit, but there are no credits continuously for 90 days or credits are not enough to cover the interest debited during the same period.

a) Only (i) b) Only (ii) c) either i or ii d) none of these

10. ATL/ACC/KCC will be treated NPA, if any Interest and/or instalment of principal remain ‘overdue’ for a period of _________

a) two harvest seasons, but not exceeding a period of two half years. b) 2 crop seasons for short & one crop season for long duration from due

date c) either a or b d) neither a nor b

11. An account will be identified as NPA from: the date of out of order

b) the date on which interest /principal have remained overdue for 90 days . c) the date since interest charged during any quarter is not serviced fully within 90 days from the beginning of the quarter

d) None of the above 12. A Sub-Standard asset is one, which has been classified as NPA for a period not

exceeding ________months a) 24 b) 12 c) 18 d) 06 13. A Doubtful asset is one, which has been remained as NPA for a period

exceeding ________months a) 24 b) 12 c) 18 d) 06


204

14. The age of DA-1, DA-2 & DA-3 will be ___________ a) upto 1 year, more than 1 year to 3 years & over 3 years b) upto 2 years, more than 1 year to 4 years & over 4 years c) upto 3 years, more than 2 years to 3 years & over 5 years

d) None of the above 15. A Loss asset is one where:

a) loss identified by the Bank or internal or external auditors or the RBI inspection but the amount has not been written off , wholly or partly.

b) If the realizable value of security, assessed by the bank/approved valuers/RBI inspection, is < 10%

c) either a or b d) neither a nor b

16. If there is a sudden reduction in the value of security in the account (above 50%)

in a sub standard account a) It will make no difference to the asset classification

b) The asset classification depends upon time period elapsed c) The account can be straightway categorized as Doubtful d) None of the above

17. A general provision of a minimum of ______ to _____.is required to be made on

Standard Assets on global portfolio basis.

a) 02.5% - 3.0% b) 0.25% - 2.0% c) 01.0% - 2.0% d) zero %

18. A general provision of _______on total out standings in Sub-standard accounts

(Secured portion) should be made a) 2.5% b) 0.25% c) 10% d) zero % 19. A provision of ______,________ should be made on the secured & unsecured

portion of the Substandard assets . a) 2.5%, 12.5% b) 50%, 60% c) 10%, 20% d) 100%


205

20. A provision of _______should be made on unsecured portion of the Doubtful

assets.

a) 2.5% b) 50% c) 100% d) 30 % 21. A provision of ____, _____&_____is made on secured portion of D1, D2 & D3

Assets respectively.

a) 20, 100, 50 b) 20, 30, 100 c) 20, 30, 40 d) 20, 40, 50

22. A provision of_____should be made on Loss assets.

a) 100% b) 50% c) 75% d) 125% 23. If one account of the borrower becomes NPA, what will be IRAC status of other

accounts?

a) Only the account which has become NPA will be classified NPA b) NPA classification will be facility wise. c) All accounts of the borrower will be classified as NPA d) None of the above

24. If there is a sudden reduction in the value of security (upto 100%) in a sub standard account

a) It will make no difference to the asset classification

b) The asset classification depends upon time period elapsed c) The account can be straightway categorized as Doubtful. c) The account can be straightway categorized as loss.

KEY TO ASSIGNMENT

NPA MANAGEMENT & RECOVERY PROCESS-I

Q. 1 2 3 4 5 6 7 8 9 10

Ans. c d c c c a c c c c

Q. 11 12 13 14 15 16 17 18 19 20

Ans. b b b a c c b c c c

Q. 21 22 23 24

Ans. b a c d


206

NPA MANAGEMENT & RECOVERY PROCESS-II 1. Where can rate of interest be rectified in DL/TL loan processing?

a) Maintenance b) Short inquiry c) Long Inquiry d) none of the above 2. How many new IRAC codes are available in the system?

a) 6 b) 7 c) 8 d) 9 3. Where to find that an account has become an NPA?

a) Short enquiry b) Long enquiry c) Common processing d) a & c 4. Which is the most popular recovery channel?

a) Lok Adalats b) DRTs c) SARFAESI Act d) Civil Courts

5. Which advances may not become NPAs under the 90 day norm

a) Staff advances b) Advances where moratorium has been granted c) Advances where the outstandings are covered by security value as in NSCs/IVPs /FDRs d) All of the above

6. Lok Adalats have______

a) adequate powers b) no powers c) judicial powers d) none of the above

7. What is the maximum amount in lacs for a suit to be filed in LOK ADALATS ?

a) 10 lacs b) 15 lacs c) 20 lacs d) 25 lacs 8. Can doubtful Asset be upgraded to Sub-standard on Cash Recovery?

a) Yes b) No c) Partial to the extent of recovery. d) Partial to the extent of intt. recovery .


207

9. Which of the following is not a Power of Bank/FI under Securitization.

a) Realize dues without intervention of court. b) Take over assets by authorized official c) Sell Assets of borrower other than mortgaged ones. d) Direct the debtors of borrower to pay direct to Bank.

10. Under which of the following conditions Securitization is not applicable.

a) Where outstanding is Rs 1,00,000/- & above. b) A/C is in live ladger. c) Our share is more than 75% among secured creditors. d) Law of limitation is applicable

11. _______days notice is required under section 13(2) of Securitization Act.

a) 45 b) 30 c) 90 d) 60

12. Recovery Agents should contact the borrower between------hrs -----hrs.

a) 0500 & 1200 b) 0700& 1900 c) 1000& 2000 d)1100 & 2100

13. Allied agricultural activity loans such as poultry loans will be come NPA if

a) Default persists as per 2 crop seasons ,not exceeding 2 half years b) In accordance with 90 day norms c) None of the above

14. On which IRAC status the account is actually treated as NPA

a) Old IRAC b) New IRAC c) None of above 15. When the old IRAC status is replaced by the system with new IRAC status.

a) Daily b) Monthly c) Once in a year on date defined by the bank d) As & when advised by the branch


208

KEY TO ASSIGNMENT

NPA MANAGEMENT & RECOVERY PROCESS-II

Q. 1 2 3 4 5 6 7 8 9 10

Ans. a c d c d c c b c b

Q. 11 12 13 14 15 16 17 18 19 20

Ans. d b b b c


209

Legal Aspects of Banking-I 1. Issuance of a cheque without balance is punishable under

a) Cr.CPC (b) IPC (c)Banking Regulation Act (d) NI Act

2. A & b maintain a current account operated by E OR S . b has filed insolvency petition and a cheque drawn by A is presented for payment. It would be in order

a. to Pay the cheque b. to return the cheque with the objection “Bs” confirmation required c. to return the cheque with the reason “joint account holder involved in an

solvency proceedings” d. none of the above

3. A Power of Attorney is terminated on the

(a)Death of the customer (b) Lunacy of the customer (c) Insolvency of the customer (d) All of the above

4. Important portions of the Trust Deed relevant to the trust account must be entered in the …….. (a) Branch Document Register (b) Power of attorney register (c)Not to be entered (d) Trust Deed Register

5. When a trustee becomes insolvent the trust account which he is authorized to operate ……

a) Must be closed b) Must be closed & fresh a/c opened for future operations c) Can be continued but operations watched carefully d) That trustee should not be allowed to operate the account

6. The statutory protection available to a collecting banker under Sec. 131 of NI Act is available in case of-----------:

a) All cheques and drafts b) Only bearer instruments c) Crossed cheques and drafts d) none of these

7. Holder in due course is defined under section------of Negotiable Instrument Act. a) 10 b) 8 c) 9 d) 18


210

8. The account opening form of a partnership firm, admitting a minor to the benefits of the partnership, vide Sec. 30(1) of Indian Partnership Act, with the consent of all the partners, is signed by whom?

a) All partners, including the minor b) All partners, authorised to operate on the account c) All partners, including the dormant/sleeping partners, except the minor d) Only Active Partners

9. A dishonoured Bill of Exchange, alongside evidence of dishonour, is required to be noted with----

a) Competent court b) Registrar of Societies/Firms c) Notary Public/Oath commissioner d) None of the above

10 Which section of the Negotiable Instruments Act, 1881 permits institution of criminal proceedings against persons who have issued cheques that have bounced?

a) Sec. 144 b) Sec. 28 c) Sec. 138 d) Sec. 50

11 A contract of Insurance is a contract of---------------------------:

a) Indemnity b) Pledge c) Guarantee d) Hypothecation

12 What is the maximum number of partners in a non-banking partnership firm?

a) 7 b) 10 c) 12 d) 20

13 While collecting cheques/bills etc. for a customer the bank acts as------------------------ ----

a) An agent of the customer b) A trustee of the customer c) A pledger d) A debtor

14 Protection under Section 131 of the N.I. Act is not available to collecting bankers

for the following: -

a) Cheques bearing account payee endorsements b) Cheques bearing forged endorsements c) Cheques with irregular endorsements e) None of the above


211

15 A Holder in Due Course of a cheque does not get protection in case of------------

a) Irregularity in endorsement b) Forging an endorsement c) Default in the title of previous holder d) None of the above

16 The Negotiable Instruments Act allows 3 days of grace on-------------------------:

a) Cheques b) Usance Bills of Exchange c) Promissory Note d) Demand Draft

17 Inchoate Negotiable Instrument means---------------------------------:

a) Post-dated instrument b) Pre-dated instrument c) Lost instrument d) Incomplete Instrument

18 Negotiable Instrument does not deal with-------------------------:

a) Promissory Note b) Bill of Exchange c) Term Deposit Receipt d) Cheques

19 In case of wrongful payment of a cheque the Bank is liable to-------------

a) Payee b) Holder c) Drawer d) Holder-in-due-course

20 A banker collects a cheque on account of a customer who is not a true owner of the instrument. The banker will be held liable for “conversion” unless:

a) The cheque was specially crossed to the collecting bank b) The cheque was crossed “Account Payee only” c) The cheque was crossed before it was deposited into the bank d) The cheque was crossed before it was presented to the paying bank

21 In the case of dishonour of cheque due to insufficiency of funds the punishment

under Section 138 of N.I. Act is---------: a) Twice the amount of cheque b) One year imprisonment c) Twice the amount of cheque or one year imprisonment d) Twice the amount of cheque or two year imprisonment or both

22 Rule in Clayton’s case has been incorporated in the------------------------:

a) Negotiable Instrument Act, 1881 b) Banking Regulation Act, 1949 c) Indian Partnership Act, 1932 d) Indian Contract Act, 1872


212

23. What is the maximum number of partners in a Banking partnership firm?

a) 7 b) 10 c) 12 d) 20

24. A trust has X and Y as its trustees. X is adjudged insolvent. Subsequently a Cheque

signed by X is presented for payment. We should------: a) Pay the cheque, if otherwise in order b) Pay the cheque after confirmation of Y c) Not pay the cheque; as such payment will not be payment in due course

d) None of these

25. A joint account is in the name of A and B with instructions " either or survivor". A grants a power of attorney in favour of C. We should-------:

a) Not allow C to operate the account without oral confirmation of B. b) Allow C to operate the account, as either of account holders is competent to

appoint an attorney c) Not allow C to operate the account

d) Suggest B that he should also execute a power of attorney in favour of somebody

Key to Assignment: Legal Aspects of Banking-I

Q 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Ans. d c d a C c c c c c

Q. 11 12 13 14 15 16 17 18 19 20

Ans. a d a c A b d c c a

Q. 21 22 23 24 25

Ans d d b a C


213

Legal Aspects of Banking-II 1. Banker’s general lien is defined under which of the following Act-------.

a) Sale of Goods Act b) Transfer of Property Act c) Negotiable Instrument Act d) Indian Contract Act

2. The Banker’s Lien on securities is treated as----------------

a) Implied Pledge b) Direct Pledge c) A special right d) None of the above

3. A banker has following securities with him. Which of these is subject to banker’s

general lien?

a) Securities received for sale b) Securities deposited upon a particular trust. c) Securities left in banker’s hands for an advance which has been declined d) None of the above

4. What does the term particular lien denote--------------

a) Right to retain possession of goods in respect of which the dues have arisen b) Right to keep the securities indefinitely c) Right to sell the securities d) Right to keep the securities for other dues

5. Because the bank’s right under general lien is an implied pledge, in case of default,

the bank, after giving a proper/reasonable notice to the borrower can------------

a) Convert general lien into a particular lien b) Sell the security under certain circumstances without filing a suit c) Can sell only after filing a suit d) None of the above

6. A bank has a right called ----------to club two accounts (one of which has debit balance and another has credit balance) in the same capacity, of customer:

a) Right of lien b) Right of Set-off c) Right of adjustment d) Right of appropriation

7. Right of set off is exercisable, where the relationship is of_________

a) Bailor - Bailee b) Lessor-Lessee c) Debtor-Creditor, Creditor-Debtor d) Principal-Agent


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8. For which among the following, the banker can exercise its right of set off, in case of need.

a) Debts which are to arise in future b) Contingent debts of the customer c) Funds deposited by the debtor for a specific purpose d) For due and lawful debts

9. In respect of time barred debts, right of set off--------------:

a) is not available b) can be exercised after obtaining permission from the court. c) can be exercised after obtaining consent letter. d) can be exercised if loan and deposit are in the same right/capacity.

10. ‘X’ has a joint “former or survivor” account XY with his wife ‘Y’. ‘X’ has an overdraft

account, where he is not paying dues. Can you exercise right of set off as a banker----------

a) No, in joint accounts it is not possible b) Yes, it is possible as the account is former or survivor c) Yes, after obtaining consent of Y d) Yes, after obtaining court order

11. Garnishee order is issued under which of the following------------

a) Civil Procedure code b) Criminal Procedure code c) Indian Contract Act. d) Banking regulation Act.

12. A Garnishee order is issued by -------------

a) The RBI to scheduled bank for stopping payment in an account. b) The competent court for attaching funds due to a judgement debtor by a third

party for payment to the judgement creditor. c) The Income Tax Recovery Officer attaching funds in the account maintained by the bank. d) The district Magistrate requiring the bank to remit to his office a certain sum of

money to the debit of particular account.


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13. Attachment Order is issued by----------------

a) The RBI to scheduled bank for stopping payment in an account. b) The competent court for attaching funds due to a judgement debtor by a third

party for payment to the judgement creditor. c) The Income Tax Recovery Officer attaching funds in the account maintained by the bank. d) The district Magistrate requiring the bank to remit to his office a certain sum of

money to the debit of particular account

14. In the process of issuing a Garnishee order court first issues------------

a) Order Nisi b) Order primary c) Order attachment d) Order absolute

15. Who is a garnishee in case of a bank account, where a garnishee order is served?

a) Judgement debtor b) Judgement creditor c) Judgement debtor’s debtor d) Cash credit customer

16. Your branch has received a garnishee order for the account of Mr. ‘X’. What is the first action you are required to take?

a) After paying the amount to the court, the customer be informed. b) After paying the amount to Judgement creditor, the customer be informed. c) Stop operations and inform customer d) None of the above

17. An attachment order is received from Income Tax Officer for attaching funds lying in

saving bank account of a person. What will be the consequences, in case, the bank fails to execute this order u/s 226(3) of income tax Act:

a) Branch manager can be arrested. b) Branch manager can be fined upto Rs. 5000 and sentenced upto one year. c) The banker shall be treated as an assessee in default. d) Amount can be recovered from the Bank, with penalty.

18. A bank has received on order under section 226(3) of the income tax act, 1961 in

the name of a customer who has a fixed deposit account, which is already matured. Which of the following action the bank should take while making payment to the income tax officer concerned?


216

a) The bank should insist for production of FDR duly charged by the party b) The bank cannot insist for production of FDR c) Production of FDR may be waived only if the income tax officer executes an

indemnity bond in favour of the bank. d) None of these

19. Which of the following statement is correct in case your branch receives an

attachment order from the income tax authorities?

a) Your right of set off becomes inoperative b) You can exercise right of set off in respect of existing claims against the customer c) You can exercise the right of set off after obtaining an order from a competent court d) none of these

20. If the garnishee order is received on a firm’s account, what would be the position of

individual account of partners being maintained with same bank branch?

a) The order will be applicable b) The order will not be applicable c) It will be applicable through special order of court d) None of the above

Key to Assignment : Legal Aspects of Banking-II

Q. 1 2 3 4 5 6 7 8 9 10

Ans. d a d a b b c d d b

Q. 11 12 13 14 15 16 17 18 19 20

Ans. a b c a c c c b b a


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SARFAESI ACT & CENTRAL REGISTRY

1.) The SARFAESI Act is applicable for pledged securities also. (True or false) 2.) For the enforcement of a mortgage security, court intervention is required even for actions under the SARFAESI Act. (True or False) 3.) After receipt of notice from the secured creditor for repayment of dues by the borrower, the borrower is legally prevented from transferring his property in any way. (True or False) 4.) On request of the secured creditor the District Magistrate or the Chief judicial Magistrate can take possession of the security for handing over it to the creditor. (True or False) 5.) When the management of the company is taken over by the secured creditor, the directors of such company are entitled to compensation for loss of office. (True or False) 6) A securitization or reconstruction company needs registeration from RBI for commencement of business. (True or False) 7). Right of acquisition of a financial asset by the securitization company or reconstruction company is subject to the prior agreements or contracts about the asset . . (True or False) 8). Acquisition of a financial asset by the securitization company or reconstruction company is with the liability also over such an asset. (True or False) 9). The security receipts issued by the securitization or reconstruction company requires registration. . (True or False) 10). SARFAESI Act is applicable to the Regional Rural Banks. (True or False) 11). Mortgage or asset backed debt instruments can be issued by the securitization company or reconstruction company to the general public. . (True or False) 12). SARFAESI Act is applicable only when there is security. (True or False)


218

13). Has SARFAESI Act defined hypothecation and whether the Act is applicable to hypothecation security? . (True or False) 14). After coming into operation ,the provisions relating to central registry the banks and financial institutions will have to register all security interests created in the asset. . (True or False) 15) A guarantor to the loan is within the meaning of the word borrowed under SARFAESI Act (True or False) 16) Banks and financial institutions can issue notice for enforcement over

security under SARFAESI Act only if these securities are not __________ creditor and only when the account is classified as ___________

17.) If the borrower does not pay within ___________ days after notice by the secured creditor the creditor can __________ of the security. 18) Which are the four documents involved for the securitization transaction? 19) For each such acquired or to be acquired asset by the securitization or reconstruction company there should be --------------- scheme. 20). When the securitization or reconstruction company issues security receipts, the holder thereof is entitled to a -------------in the financial asset.

21). Any direction issued by the RBI under SARFAESI act has ---------- effect and is ------------on the parties concernerd.

22). Asset reconstruction means -------------- by any securitization company or reconstruction company of any right or interest of the creditor in any------ 23). The period stipulated in the Act for filing details of security interest is -------days. 24). Duty to report satisfaction of charge to the central registerar is on the creditor or on the borrower ?


219

25). Besides the SARFAESI Act ,some other laws requires some registration of charge created in the property. Is such double registration avoidable? a) Yes, the creditor can choose under such law he needs registration. b) No, registration under the SARFAESI Act as well as any other applicable law will have to be madeas the SARFAESI Act is not subsititution of any other law. c) Yes, if one charge noting is by a registered document. d) No, as the Civil Court and DRT still have jurisdiction against the properties both registration. 26.) When any bank or financial institutions obtain a charge against property, with which will the transaction have to be registered under the SARFAESI Act, 2002?

a.) With the central Registry. b.) With the ROC. c.) With the registrar of Assurance within whose jurisdiction the property lies. d.) With the Reserve Bank of India.

27.) When can the provision of SARFAESI Act, 2002 be invoked for

proceeding against the charged property? a.) When the bank feels that it is necessary for the recovery at any time. b.) When the RBI directs to do so. c.) When there is default in repayment by the borrower. d.) When there is default in repayment and the bank declares the account as NPA.

28). Whether existing or future receivable are property?

a.) Yes. b.) No. c.) Yes, but if and when charged to the leader. d.) NO, if hypothecated to the leader.

29) From the following which function is of a securitization company? a.) Acquisition of loan transaction from the lender. b.) Help the lender in recovery by sale of charged property. c.) Take legal steps against the defaulter borrower on behalf of the lender.

d.) Acquisition of financial assets from the originator.


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ANSWERS: 1. False 2. False 3. True 4. True 5. False 6. true 7. False 8. False 9. False 10. False 11. False 12. True 13. True 14. True 15. True 16. In possession,NPA 17. Sixty,take possession 18. offer document,debenture,agreement,security receipt 19. Separate 20. Undivided interest 21. Statutory,binding 22. Acquisition,financial assistance 23. 30 24. Creditor 25. b 26. a 27. d 28. a 29. d


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Advances General 1. Two firm are said to be identical when a) Partners of the firms are the same b) When two firms have some common partners c) When the two firms have any common partner d) When the two firms have same name 2. Minimum number of directors in a public limited company must be……………. a) 5 b) 10 c) 12 d) 3 e) None of these 3. Which among the following is not found in the MOA of a Company?

a) Objectives of the company b)Authorised Capital c) Borrowing powers of the directors d)Registered Office 4. A person will be declared as legally dead, if for a period of ………….years or

more the persons who would have normally known of his existence have not heard of him/known of his existence.

a) 12 yrs b)7 yrs c) 5 yrs d)3 yrs 5.With with does section 45Z of Banking Regulation Act ,1949 deals with? a)Return of unclaimed deposits b)Permission to open branches c)Maintenance of Currency chests d(Nomination Facility 6.As per the Indian Limitation Act, an equitable mortgage becomes time-barred after ____ years.

a) 3 b) 6 c) 10 d) 12

7.The certificate to commence business is to be called for, for perusal and return for opening of an account of:

a) Public Limited Company b) Club & Association c) Private Limited Company d) Partnership firms

8.Articles of association of a company contains details regarding:

a) Objectives of the company b) Authorized capital of the company c) Matter related to the conduct of day-to-day business of the company d) Registered office of the company


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9.Accounts in the name of companies can be opened without certificate of commencement of business in the case of ___:

a) Public Limited Companies b) Public Limited Companies with an authorised share capital of Rs. 1.00 crore c) Private Limited Companies d) None of these

10.In the matter of a Joint Stock Company, the term “negative lien” means:

a) A lien which does not confer on the bank a right of sale of asset b) Where a company, through its own resolution is restrained from creating further

charge on its assets c) Where a charge created in favour of the bank is not registered with the Registrar of

Companies d) The charge is in the nature of only a floating charge on its assets.

11.In the case of joint stock company, the registration of charge with the Registrar of Companies is not necessary:

a) Against the pledge of movable property b) Against hypothecation of movable property c) Against assignment of book debts d) Against mortgage of fixed assets

12.Hypothecation advances granted to partnership undertakings should be registered with:

a) The Registrar of Companies b) The Registrar of Assurance c) The Registrar of Firms d) Do not require any registration

13.If a married woman is a borrower and does not repay bank dues, it can be recovered:

a) From her husband b) From her separate estate c) From her husband’s estate d) None of the above

14.Guarantees are defined in:

a) Negotiable Instrument Act 1881 b) Banking Regulation Act 1949 c) Indian Contract Act 1872 d) RBI Act 1934


223

15.The mortgage has been defined under section _____of Transfer of Property act:

a) 57 b) 58 c) 59 d) 60

16.In the event of mortgage of immovable property, which of the following is true…..

a) Ownership is transferred b) Right is transferred c) A specific interest is created d) None of the above

17.For creating an equitable mortgage, which of the following is required:

a) Original Title Deed b) Photocopy of the title deed c) Attested copy of the title deed d) Only Furd (Girdawari)

18.In case of mortgage of immovable property as collateral security, a search report from legal counsel is insisted upon for____ years:

a) 8 b) 10 c) 12 d) 30

19.When a debt is offered as security, which charge should be created:

a) Assignment b) Hypothecation c) Pledge d) None of the above

20.The charge assignment is governed by the provisions of:

a) Negotiable Instrument Act 1881 b) Transfer of property Act c) Indian Contract Act 1872 d) RBI Act 1934

21.When loan is to be granted against the security of a LIC policy, which charge is to be created:

a) Mortgage b) Hypothecation c) Assignment d) Pledge

22.After the repayment of the loan secured by assignment of debt the charge is:

a) Transferred in favour of borrower b) Endorsed in favour of the borrower c) Re-assigned in favour of the borrower d) None of the above


224

23. If the assignor is a Ltd. Co., whether the registration of charge u/s 125 of Companies Act is necessary:

a) Yes b) Not necessary c) Preferable, in the interest of the bank d) none of the above

24.Hypothecation is defined in:

a) Indian Contract Act 1872 b) Transfer of Property Act c) Negotiable Instrument Act d) SERFASI

25.The pledge is defined under section __________of Indian Contract Act.:

a) 172 b) 272 c) 372 d) None of the above

Advances - General

Q 1. 2 3 4 5 6 7 8 9 10

Ans. a d c b d d a c c b

Q. 11 12 13 14 15 16 17 18 19 20

Ans. a d b c b c a c a b

Q. 21 22 23 24 25

Ans. c c a d a


225

Advances General matters-I 1. The companies are required to seek an extension of time from the concerned

Registrar of Companies, if audited accounts are not approved by shareholders at annual general meeting within … months. a. 3 b. 6 c. 9 d. 12

2. The Bank Guarantees are covered under-

a. Sale of Goods Act b. N.I. Act c. Indian Contract Act d. Companies Act

3. MCA – 21 relates to _____

a. Master of Computer Appreciation b. Ministry of Company Affairs c. Member Chartered Accountant d. Registration of Charge with ROC

4. Which new e-forms will be used for creation/modification/satisfaction of charge with

ROC

a) 8, 10, 13 b) 8, 10, 15 c) 8, 10, 17 d) 8, 10, 19

5. For filing the charge for registration, documents in physical form are not been

accepted after ______

a) 30-04-2006 b) 31-05-2006 c) 30-06-2006 d) 31-07-2006

6. Authorised officials of the branches should obtain Digital Signature Certificates

(DSC) from IDRBT before _______

a) 30-04-2006 b) 31-05-2006 c) 30-06-2006 d) 31-07-2006

7. “Small Business Credit Card” has been rechristened as ______

a) SME Credit Card b) SME Credit Plus c) Kisan Credit Card d) Kisan Gold Card


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8. Working capital limit for SSI units upto Rs. 5.00 crore should be assessed as per

________method

a) Operating Cycle b) Traditional c) Nayak Committee d) Projected Balance Sheet

9. Working capital limit for C& I (Mfg) units upto Rs. 5.00 crore should be assessed as per _____method

a) Traditional Method b) Projected Annual Turnover c) Projected Balance Sheet d) None of above

10. Which of the following is not a Current Assets

a) Advance given to supplier b) Prepaid expenses c) Dues from partners d) Interest accrued on investment

11. “Cost of Sales” is _______

a) Cost of Raw Material consumed and direct expenses including depreciation

b) Cost of Raw Material consumed and direct expenses excluding depreciation

c) Cost of Production plus indirect expenses d) Cost of production plus opening stocks of semi-finished and finished

goods minus closing stocks of semi-finished and finished goods 12. Profit Volume Ratio is _____

a) Gross Profit divided by Turnover b) Profit % of selling price c) Net Profit % of Cost of sales d) Contribution % of Selling Price

13. When there is no production, the net loss will be equal to ____

a) Fixed Costs b) Variable Costs c) Total Costs d) Break even sales


227

14. Break Even Point for sales is equal to _____

a) Selling price per unit X Fixed Cost/Contribution b) Sales – Cost of Sales/Sales c) Fixed Cost/Contribution d) None of above

15. Cash Accrual is _____

a) Cash received minus cash paid during the year b) Profit Before Interest and tax plus depreciation c) Profit after interest and tax plus depreciation d) Savings with housewives

16. DSCR calculated to ensure the repayment of Term Loan indicates, unit’s,

a) Liquidity b) Profitability c) Solvency d) Turnover

17. Various Parties to a Bank Guarantee are _____

a) Applicant, Beneficiary and Guarantor b) Debtor, Creditor and Surety c) Promiser, Promisee and Bank d) None of above

18. The objective of Funds Flow Analysis is _____

a) Ensure term loan repayment b) Ensure end use of credit c) To check margin for working capital d) All of above

19. Funds Flow Analysis is done if a unit has availed working capital limit of _______

a) Rs. 5 lac and above b) Rs. 10 lac and above c) Rs. 20 lac and above d) Rs. 25 lac and above

20. Profit from normal business and retained in the business are termed as _____

a) Revenue Reserve b) Capital Reserve c) Statutory Reserve d) None of above


228

21. Bank’s charge on the assets of a company, has to be registered with the Registrar of Companies under Indian Companies Act within ____days

a) 10 b) 20 c) 30 d) 45

22. Pari Passu charge refers to _____

a) Ranking equally in priority b) Ranking in proportion to the lender’s share in total advances c) Ranking as per the ranks of individual bank d) Ranking as per CRISIL Rating

23. In a Funds Flow Analysis, “FUNDS” refer to _____

a) Cash b) Working Capital Gap c) Net Working Capital d) All financial Resources

24. To verify the “CAPITAL CLAUSE” of a company as a banker, the document

needs to be checked is _______

a) Memorandum of Association b) Articles of Association c) Certificate of Incorporation d) Certificate of commencement of Business

ADVANCES GENERAL MATTERS-I

1 b 2 c 3 d 4 c 5 c

6 c 7 a 8 c 9 b 10 c

11 d 12 d 13 a 14 a 15 c

16 c 17 a 18 b 19 d 20 a

21 c 22 a 23 d 24 a


229

Advances General matters-II

1. “Debt” in a balance sheet refers to _____

a) Outside Liabilities b) Current Liabilities c) Term Liabilities d) None of above

2. “Block Assets” means _____

a) Goodwill b) Fixed Assets c) Non moving assets d) None of above

3. “Equity” refers to ______

a) Capital, Reserves & Surplus and Retained Profit b) Equity shares c) Capital and Term Liabilities d) None of above

4. In “SWOT ANALYSIS’, S stands for Strength, W for Weakness, O for

Opportunities and T for _____

a) Technology b) Technical ability c) Threats d) None of above

5. Packing Credit is granted for _____

a) Packing goods b) Importing goods c) Advance against Exports d) None of above

6. In case of bank guarantee issued to ensure for prompt payment of instalments

for the machinery/equipment purchased, the type of guarantee issued is a) Financial b) Performance c) Bid-Bond d) Deferred Payment

7. Centres for creating equitable mortgage are _____

a) All district headquarters b) Centres approved by Local Head Office c) Notified as per Transfer of Property Act d) Notified by RBI


230

8. Ability to meet immediate liabilities of a unit is indicated by ______

a) Quick Ratio b) DER c) TOL/TNW d) DSCR

9. Which of the following denotes to liquidity ratios

a) DER and TOL/TNW b) DER and Current Ratio c) Current Ratio and Quick Ratio d) TOL/TNW and DSCR

10. How Statutory liabilities will be classified in the Balance Sheet?

a) Non Current Liabilities b) Non Current Assets c) Current Liabilities d) Current Assets

11. How the liabilities i.e. tax and dividend payable etc which are known but

not provided for, are classified?

a) Provide for these liabilities as Current Liabilities b) Treat as Misc. Liabilities c) Classify as Term Liabilities d) Deduct from Profit

12. Sensitivity analysis refers to _____

a) Technique of determining the effect of changes in Cost of Raw Material,

Sales and Selling Price b) Technique of determining effect of technology on products c) Technique of determining effect of competition d) None of above

13. Contribution means ______

a) Excess of revenue over variable cost b) Excess of revenue over fixed cost c) Excess of revenue over total cost d) Excess of revenue over operating cost

14. What is Working Capital Gap (WCG)?

a) Current Assets minus Current Liabilities b) Fixed Assets minus Term Liabilities c) Current Assets minus Current Liabilities excluding bank borrowings d) None of above


231

15. What is bridge loan?

a) Loan for construction of bridges b) Interim loan made available pending long term arrangements by raising

equity and MTL etc. c) Working Capital Loan to meet long term requirements d) None of above

16. The Bench Mark for Current Ratio is ____

a) 1.00 b) 1.25 c) 1.33 d) 1.50

17. In case of Cash Credit limit against Book Debts, what will be the primary

security?

a) Mortgage b) Hypothecation c) Lien d) Assignment

18. “Receivables” in a Balance Sheet refers to _____

a) Sundry Creditors b) Receivable from Govt. c) Sundry Debtors d) Raw Material Receivable

19. Cash Budget Method is used for assessing working capital requirement in

case of _________

a) SSI units b) C&I Units c) Seasonal Industry/Construction Co. d) All of above

20. While assessing Working Capital Requirement, the margin money held on

account of LCs/BGs issued will be treated as _____

a) Fixed Asset b) Current Asset c) Intangible Asset d) Non-Current Asset

KEY


232

Advances General matter-II

1 c 2 b 3 a 4 c 5 c

6 d 7 c 8 a 9 c 10 c

11 a 12 a 13 a 14 c 15 b

16 c 17 b 18 c 19 c 20 b


233

Advances General matter -III

1. How many declarations are there in Fair Lending Practices Code (FLPC)

a) 4 b) 6 c) 8 d) 10

2. Which of the followings is incorrect in respect of FLPC

a) Interest rate change is to be advised to customers b) Bank shall deliver a copy of loan document to the customer c) It is a voluntary code adopted by bank d) None of above

3. Loans to SSI are collateral free upto Rs. _____lacs as per RBI Guidelines

a) 1 b) 3 c) 5 d) 10

4. Pre-payment charges on Term Loan should be credited to _____account

a) Interest b) Exchange c) Commission d) Discount

5. Financed against Central Warehousing Corporation (CWC)/State

Warehousing Corporation (SWC) Receipts can be granted to _____

a) Manufacturers b) Agriculturist c) Traders dealing in Commodities d) All of above

6. Which type of credit facility will be provided to the borrowers against CWC/SWC Receipts

a) Demand Loan b) Cash Credit

c) Term Loan d) Both (a) & (b)

7. Demand Loan against CWC/SWC Receipts will be restricted to ___% of the value of the warehouse receipt valued at market value OR ___% of the minimum support price (MSP) declared by STATE/CENTRAL Govt., whichever is lower.

a) 50, 60 b) 60, 70

c) 75, 80 d) 80, 90


234

8. For finance against CWC/SWC Receipts, the Primary Security will be ____

a) Personal Guarantee of partners or major shareholders b) Hypothecation of Goods c) Charge over warehouse receipt d) All of above

9. For finance against CWC/SWC Receipts, the Collateral Security will be ____

a) Personal Guarantee of partners or major shareholders b) Hypothecation of Goods c) Charge over warehouse receipt d) All of above

10. Loan granted against CWC/SWC Receipts will be repaid in a maximum

period of ____months

a) 3 b) 6 c) 9 d) 12

11. Margins for loan granted against CWC/SWC Receipts should be topped up

on ____basis

a) Daily b) Weekly c) Fortnightly d) Monthly

12. Composite loan to SSI sector has been enhanced from Rs. 50 lacs to Rs.

_______lacs

a) 60 b) 75 c) 100 d) 200

13. A manufacturing and Trade & Service business unit can be defined as SME if

its turnover is upto Rs. _____crore

a) 10 b) 50 c) 20 d) 25

14. RBI has fixed prudential exposure norms @ _____% of total capital funds to

single borrower

a) 5 b) 10 c) 15 d) 20


235

15. RBI has fixed prudential exposure norms @ _____% of total capital funds to single borrower including additional exposure of 5% for infrastructure financing

a) 5 b) 10 c) 15 d) 20


group borrowers

a) 20 b) 30 c) 40 d) 50


group borrowers including additional exposure of 10% for infrastructure financing

a) 20 b) 30 c) 40 d) 50

KEY Advances General matter -III

1 c 2 d 3 c 4 a 5 c

6 d 7 c 8 c 9 a 10 d

11 c 12 c 13 b 14 c 15 d

16 c 17 d


236

Advances General matter -IV

1. Articles of association of a company contains details regarding:


2. Accounts in the name of companies can not be opened without certificate of

commencement of business in the case of………

a) Public Limited Companies b) Public Limited Companies with an authorised share capital of Rs. 1.00

cr. c) Private Limited Companies d) None of these

3. In the case of joint stock company, the registration of charge with the Registrar of Companies is not necessary:


4. For creating an equitable mortgage, which of the following is required:


5. A DP note obtained without affixing revenue stamps ……….

a) can not be Rectified b) can be admitted as evidence. c) no effect d) both a & b

6. In “SWOT ANALYSIS’, S stands for Strength, W for Weakness, O for Opportunities and T for _____

a) Technology b) Technical ability c) Threats d) None of above


237

7. Non registration of a firm with the Registrar of Assurances attracts the following disability

a) Creditors can not sue the firm b) The firm cannot sue the debtors c) Partnership cannot be wound up d) Firm cannot borrow from the bank

8. Which one classification of Preference Shares is incorrect

a) Current Liabilities if falling due in next 12 months b) Term Liabilities c) Term Liabilities if falling due in next 12 years d) None of the above

9. As per Loan policy TOL/TNW benchmark for Manufacturing Units is

a) 2 b) 3 c) 4 d) 5

10. As per Loan Policy TOL/TNW benchmark for Traders is

a) 2 b) 4 c) 5 d) 3

KEY

KEY : Advances General matter –IV

1 c 2 a 3 a 4 a 5 d 6 c 7 b 8 c 9 b 10 c


238

LEGAL ASPECTS GENERAL BANKING-I 1. In the case of dishonour of cheque due to insufficiency of funds the punishment

under Section 138 of N.I. Act is---------:

a) Twice the amount of cheque b) One year imprisonment c) Twice the amount of cheque or one year imprisonment d) Twice the amount of cheque or two year imprisonment or both

2. Rule in Clayton’s case has been incorporated in the------------------------:

a) Negotiable Instrument Act, 1881 b) Banking Regulation Act, 1949 c) Indian Partnership Act, 1932 d) Indian Contract Act, 1872

3. What is the maximum number of partners in a Banking partnership firm?

a) 7 b) 10 c) 12 d) 20

4. A trust has X and Y as its trustees. X is adjudged insolvent. Subsequently a

Cheque signed by X is presented for payment. We should------: a) Pay the cheque, if otherwise in order b) Pay the cheque after confirmation of Y c) Not pay the cheque; as such payment will not be payment in due course d) None of these 5. A joint account is in the name of A and B with instructions " either or survivor". A

grants a power of attorney in favour of C. We should-------: a) Not allow C to operate the account without oral confirmation of B. b) Allow C to operate the account, as either of account holders is competent to

appoint an attorney c) Not allow C to operate the account

d) Suggest B that he should also execute a power of attorney in favour of somebody

6. As per recent direction of RBI, a bank can collect an account payee cheque for any

person other than the payee constituent, provided.

a) the payee has mandated for it b) the drawer withdraw the account payee mandate c) both a and b above d) neither a nor b above


239

7. The companies are required to seek an extension of time from the concerned Registrar of Companies, if audited accounts are not approved by shareholders at annual general meeting within … months.

a. 3 b. 6 c. 9 d. 12 8. KYC norms are applicable in following cases

a.All new account b.All new account and old accounts with High value transactions

c.All cash transactions d.All accounts 9. Customer’ has be defined in a. NI Act b. BR Act c. COPRA Act d. KYC Guidelines 10. Sec. 45ZA of Banking Regulation Act, 1949 deal with? a. Returned of unclaimed deposits b. Permission to open new branches c. Maintenance of liquid assets d. Nomination facility 11. Unclaimed deposits are classified by the bank as …….. liabilities a. Time b. Current c. Deferred d. None of these 12. The Bank Guarantees are covered under- a. Sale of Goods Act b. N.I.Act c. Indian Contract Act d. Companies Act


240

13. When do we honour payment of a cheque in cash after business hours? a. If it is presented by any person b. If it is presented by the payee c. If it is presented by the drawer d. If it is presented by the person known to bank officials

Answers

LEGAL ASPECTS GENERAL BANKING –I

1. d 2 d 3 b 4 a 5 c 6 b 7 b 8 d 9 d 10 d

11 b 12 c 13 c


241

LEGAL ASPECTS GENERAL BANKING -II

1. If a person is declared as insolvent, he will remain so till:

a) He lives. b) Court gives discharge certificate

c) He starts another business d) None of the above

2. If a married woman is a borrower and does not repay bank dues, it can be recovered:

a) From her husband b) From her separate estate

c) From her husband’s estate d) None of the above

3. The person on whose behalf the guarantee is issued is called:

a) Applicant b) Beneficiary

c) Guarantor d) None of the above

4. Guarantees are defined in:

a) Negotiable Instrument Act 1881 b) Banking Regulation Act 1949

c) Indian Contract Act 1872 d) RBI Act 1934

5. Bailment has been defined in which section_____ of Indian Contract act 1872:

a) 247 b) 147

c) 148 d) 347

6. The mortgage has been defined under section _____of Transfer of Property act:

a) 57 b) 58

c) 59 d) 60

7. When the immovable property is mortgaged then:

a) Ownership is transferred b) Right is transferred

c) A specific interest is created d) None of the above

8. For creating an equitable mortgage____ is required:

a) Original of the title deed b) Photocopy of the title deed

c) Attested copy of the title deed d) Only Furd (Girdawari)

9. A search report from legal counsel is insisted upon for____ years:

a) 8 b) 10

c) 12 d) 30


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10. When a debt is offered as security, which charge should be created:

a) Assignment b) Hypothecation

c) Pledge d) None of the above

11. The charge assignment is governed by the provisions of:

a) Negotiable Instrument Act 1881 b) Transfer of property Act

c) Indian Contract Act 1872 d) RBI Act 1934

12. When loan is to be granted against the security of a LIC policy, which charge is to be created:

a) Mortgage b) Hypothecation

c) Assignment d) Pledge

13. After the repayment of the loan secured by assignment of debt the charge is:

a) Transferred in favour of borrower b) Endorsed in favour of the borrower

c) Re-assigned in favour of the borrower d) None of the above

14. If the assignor is a Ltd. Co., whether the registration of charge u/s 125 of Companies Act is necessary:

a) Yes b) Not necessary

c) In the interest of the bank d) None of the above

15. Under Transfer of Property act………………..would mean transfer of actionable claim:

a) Assignment

b) Mortgage

c) Negotiation

d) Pledge

16. In the case of dishonour of cheque due to insufficiency of funds the punishment under Section 138 of N.I. Act is:

a) Twice the amount of cheque

b) One year imprisonment

c) Twice the amount of cheque or one year imprisonment

d) Twice the amount of cheque or two year imprisonment or both

17. Rule in Clayton’s case has been incorporated in the:

a)Negotiable Instrument Act, 1881 b) Banking Regulation Act, 1949

c) Indian Partnership Act, 1932 d) Indian Contract Act, 1872

d)


243

18. A cheque is issued on 05-02-09 with remarks "valid upto 05-03-09." The cheque presented for payment on 10-03-09 should be:

a) Returned with the reason" cheque contains extraneous matter"

b) Can be paid because it is within 6 months from the date of issue

c) Returned with reason "requires revalidation"

d) Returned with reason "insufficient funds"

19. A trust has X and Y as its trustees. X is adjudged insolvent. Subsequently a Cheque signed by X is presented for payment. We should:

a) Pay the cheque, if otherwise in order

b) Pay the cheque after confirmation of Y

c) Not pay the cheque, as such a payment will not be payment in due course

d) None of these

20. A joint account is in the name of Hari and Krishna with instructions " either or survivor". Hari grants a power of attorney in favour of Lakshman. We should:

a) Not allow Lakshman to operate the account without oral confirmation of Krishna

b) Allow Lakshman to operate the account, as either of account holders is competent to appoint an attorney

c) Not allow Lakshman to operate the account

d) Suggest Krishna that he should also execute a power of attorney in favour of somebody

21. As per the Indian Limitation Act, an equitable mortgage becomes time barred after ____ years.

a) 3 b) 6 c) 10 d) 12

22. The certificate to commence business is to be called for, for perusal and return

for opening of an account of:

a) Public Limited Company b) Club & Association c) Private Limited Company d) Partnership firms

23. Articles of association of a company contains details regarding:



244

24. Accounts in the name of companies can not be opened without certificate of

commencement of business in the case of ___:

a) Public Limited Companies b) Public Limited Companies with an authorised share capital of Rs. 1.00 crore c) Private Limited Companies d) None of these

25. In the case of joint stock company, the registration of charge with the Registrar of

Companies is not necessary:


26. Hypothecation advances granted to partnership undertakings should be

registered with:

a) The Registrar of Companies b) The Registrar of Assurance c) The Registrar of Firms d) Do not require any registration

27. In the event of mortgage of immovable property, which of the following is true…..

a) Ownership is transferred b) Right is transferred c) A specific interest is created d) None of the above

28. For creating an equitable mortgage, which of the following is required:


29. In case of mortgage of immovable property as collateral security, a search report

from legal counsel is insisted upon for____ years:

a) 8 b) 10 c) 12 d) 30

30. IRAC norms were introduced from the year ending …… as on 31 st March

a) 1992 b)1993 c) 1991 d) none of the above


245

KEY

LEGAL ASPECTS GENERAL BANKING-II

1. b 2. b. 3. b 4. c 5. d

6. b 7. c 8. a 9. d 10. a

11. b 12. c 13. c 14. a 15. a

16. d 17. d 18. c 19. a 20. c

21. d 22. a 23. c 24. a 25. a

26. d 27.c 28. a 29. d 30. b


246

International Banking ASSIGNMENT – 1 NRE ACCOUNTS

1 Who can open an NRE Account?

a) Indian nationals whose stay abroad is more than 182 days in the previous

financial year. b) Indian resident who have gone abroad for studies, business, profession or

gainful employment indicating indefinite stay abroad. c) PIOs and their Spouse d) Officials of Central/State Govt./PSU serving abroad and persons deputed

abroad with international agencies like IMF & WHO etc. e) All of the above

2 The balance along with interest in NRE account can be repatriated with the permission of __________

a) RBI b) Ministry of Finance c) Commerce Ministry d) No permission required

3 NRE account can be opened in the form of ________

a) C/A b) S/B c) TDR d) All of above

4 Joint NRE account can be opened, if _____

a) All the account holders are persons of Indian Nationality who have gone abroad for business, profession or gainful employment for indefinite stay

b) PIO with spouse even he/she is foreign national c) Only first applicant to be NRI and others can be resident Indian. d) All of the above e) Either of (a) & (b)

5 Operation of NRE Account by third party can be permitted by ADs _______

a) Under a Power of Attorney b) Letter of authority in the prescribed format c) Either of (a) or (b) d) None of the above


247

6 Which of the following credit transactions are permitted into NRE Account?

a) Transfer from any other NR (E) account of the same account holder b) Transfer from FCNB of account holder c) Transfer of funds between NRE Accounts of different persons held with

same AD or different ADs d) All of the above

7 Which of the following debit transactions are permitted from NR (E) account?

a) Local withdrawal b) Transfer to any other NR (E) account of the account holder c) Transfer to FCNB account of the account holder d) All of the above

8 Which of the following credit transactions are allowed in NR (E) Account?

a) Proceeds of remittance in freely convertible foreign currency received from abroad in an approved manner

b) Proceeds of foreign currency/bank notes/travelers cheques etc. by the account holder during his temporary visit to India

c) Interest/dividend earned on Govt. Securities purchased from the funds in NR (E) Account

d) All of above

9 Which of the following debit transactions, ADs can authorize in NR (E) account? a) Permissible investments in shares/security/commercial paper of Indian

companies b) Purchase of immovable property c) Both (a) & (b) d) None of the above

10 Which of the following debit transactions, ADs can allow in NR(E) account

subject to report to RBI on Form A 2?

a) Remittance to the country of residence of account holder b) Sale of foreign currency travelers cheques, to the account holder or

dependents on production of evidence of travel abroad c) Sale of F.C.Notes upto the equivalent of USD 2000 d) All of above


248

11 NRE Savings Bank opened with zero balance will be operationalised if the remittance is received in the account within a period of _______days

a) 30 days b) 60 days c) 21 days d) None of the above

12 ADs can grant loan to NRE for the following purpose

a) Investment other than in Agr. plantation and real estate b) Direct investment on non-repatriation basis c) Acquisition of house/flats for their residential uses subject to FEMA d) All of above

13 ADs can grant FC loans to the NRIs minimum to the tune of Rs._______

a) USD25000/GBP15000/EURO 20000 b) USD15000/GBP10000/EURO 10000 c) USD30000/GBP20000/EURO 25000 d) No limit

14 ADs can grant FC loans to the NRIs against their deposits maximum to the

tune of Rs._______

a) Equivalent to Rs.50 lacs b) Equivalent to Rs.100 lacs c) Equivalent to Rs. 20 lacs d) No limit

15 ADs can grant _______to NRE account holders

a) Overdraft b) Demand Loan c) Either a or b d) None of these

16 If a non-resident account holder returns to India for permanent settlement, his account will be designated as _______

a) Resident Account b) RFC ( HCD) c) Either ‘a’ or ‘b’ d) RFC ( Domestic)

17 TDR/STDR under NRE Account can be opened for a period of :

a) Minimum1 year and maximum 10 years b) Minimum1 year and maximum 5 years c) Minimum6 months and maximum 10 years d) None of the above


249

18. Which of the following statement/s is/are true in the case of PIOs :

a) To Exclude Pakistan, Bangladesh for Bank Accounts

b) + Srilanka for investment in firms; c) + Afghanistan, Bhutan, China, Iran, Nepal, Sri Lanka for acquisition / transfer of immovable property

d) All of the above. 19. What type of transaction is permitted by the Power of Attorney Holder ?

a) Withdrawals for local payments and b) Remittance to the account holder himself under a specific power.

c) Facilitate investments in India in case NRI is permitted to do the same d) All of the above. 20. What type of transaction is not permitted by the Power of Attorney Holder ?

a) Repatriate funds held in accounts outside India for any other purpose b) make payment of gifts on behalf of the account holder c) transfer funds from the said account to another NRE account.

d) All of the above

21. NRI/PIO may remit an amount up to USD one million, per financial year, out of the balances held in his Non- Resident (Ordinary) Rupee (NRO) account / sale proceeds of assets (inclusive of assets acquired by way of inheritance or settlement), for all bonafide purposes, subject to

a) the satisfaction of the Authorized Dealer bank, b) on production of an undertaking by the remitter, c) certificate by a Chartered Accountant in the formats prescribed by CBDT d) All of the above.

KEY TO ASSIGNMENT – 1(IB)

1 d 2 d 3 d 4 c 5 c 6 d 7 d 8 d 9 c 10 d 11 b 12 d 13 a 14 b 15 c 16 c 17 b 18 d 19 d 20 d

21 d


250

International Banking

ASSIGNMENT –2 ( FCNB )

1 Foreign Currency Non-Resident (Bank) account can be opened in

____designated currencies

a) 1 b) 2 c) 3 d) 6

2 Which are the new currencies permitted for opening FCNR (B) account?

a) USD, GBP b) AUD, EURO c) INR, GBP d) Can Dollar, AUD

3 The following types of accounts can be opened under FCNR (B)

a) S/B b) C/A c) TDR/STDR d) All of above

4 FCNR (B) account can be opened for a minimum period of _____year

a) 1 b) 2 c) 3 d) 5

5 The maximum period for which FCNR (B) account can be opened is

_____years

a) 1 b) 2 c) 5 d) 4

6 Interest on FCNR (B) deposit for a period of _______is calculated on actual

number of days without any compounding effect

a) 1 year b) 2 years c) 3 years d) 5 years

7 Interest on FCNR (B) deposit for a period of _____is calculated for every block of 180 days and thereafter for the remaining actual number of days with compounding effect

a) More than 1 year b) More than 2 years c) More than 3 years d) More than 5 years


251

8 What is the minimum amount of USD/GBP/EURO deposit, (designated foreign currency) under FCNR (B)?

a) 500 b) 1000 c) 2000 d) 5000

9 Minimum amount of JPY _____currency can be accepted as deposit under FCNR (B)

a) 100000 b) 200000 c) 300000 d) 500000

10 Transactions pertaining to FCNR (B) will be reported to _____

a) RBI b) GMU Kolkatta c) Respective LHO d) Respective RBO

11 The reporting of FCNR (B) transactions to GMU Kolkatta is _____

a) Daily b) Weekly c) Fortnightly d) Monthly

12 Deposit under FCNR (B) which remained overdue for more than _____days,

cannot be renewed from the date of maturity

a) 7 b) 14 c) 21 d) 28

13 For premature withdrawal under FCNR (B) deposit, interest is payable

____% less than the rate applicable to the period for which the deposit remained with the bank

a) 0.5 b) 1.0 c) 1.5 d) No penalty is to be levied

14 If deposit under FCNR (B) is withdrawn before the completion of one year from the date of deposit, what interest is payable to the depositor?

a) 1% less than contract rate b) 2% less than contract rate c) No interest to be paid d) None of above


252

15 At the end of each calendar quarter, branches are reporting to GMU Kolkatta through Quarterly Statement – 1, pertaining to ______

a) Currency wise balances of FCNR (B) Deposits b) Transfer of FCNR (B) Interest paid balance c) Both (a) & (b) d) None of above

16 At the end of each calendar quarter, branches are reporting toGMU Kolkatta

through Quarterly Statement – 2, pertaining to ______

a) Currency wise balances of FCNR (B) Deposits b) Transfer of FCNR (B) Interest paid balance c) Both (a) & (b) d) None of above

17 Which of the following statement is not correct in the case of FCNR(B)

accounts: a) Interest is linked to LIBOR of USD

b) Interest rates regulated by RBI. No bank can pay more interest. c) Interest is linked to LIBOR of respective currencies d) Both ‘b’ & ‘c’

18. Mr. Sharma comes to India on a temporary visit. He wants to open FCNB deposit for USD 25000/-. He tenders USD currency notes for this purpose. He also has FCTC for USD 10000 with which he wants to open an NRE account. How will you handle the transaction ?

a) NRIs during their temporary visits to India can deposit FCNotes & FCTCs in their accounts as also open new accounts with FCN & FCTC.

b) Bank to verify and ensure that FCN in excess of USD 5000 FCTC in excess of USD 10000, FCN+FCTC in excess of USD 10000 are declared in CDF.

c) Bank to ensure that the customer continues to be NRI. d) Preclosure of FCNB issued against FCN/FCTC will not be at TT buying rates

hence noting to be given on the FCNB deposit receipt. e) All of the above are applicable. 19. Conversion of NRE TDR/STDR to FCNB or Vice versa before maturity attracts penal interest provisions as usual :

a) True b) False

20. On account of NRI returning to India, FCNR/ NRE Term deposit can continue till maturity :

a) True b) False


253

KEY TO ASSIGNMENT – 2 (IB) ( FCNB ) 1 d 2 d 3 c 4 a 5 c 6 a 7 a 8 b 9 a 10 b 11 a 12 b 13 b 14 c 15 a 16 b 17 a 18 e 19 a 20 a


254


ASSIGNMENT – 3 RFC ACCOUNTS

1 NRI returning to India, can open ________account in foreign currency

a) NRE b) NRO c) RFC (HCD) d) All of above

2 Resident Foreign Currency (Home Coming Deposit) account can be opened

in our bank in_______only

a) Rupees b) USD c) GBP,USD,EURO d) EURO

3 The minimum deposit in USD under RFC (HCD) is ______

a) 1000 b) 2000 c) 3000 d) 5000

4 RFC (HCD) account can be opened as _____account

a) S/B b) C/A c) TDR d) All of above

5 RFC (HCD) account can be maintained in ______name of returning Indians

a) Returning Indian who has been NRI for minimum one year. b) Joint (Both returning Indians to be eligible) c) Only first applicant to be returning Indian c) Both (a) & (b)

6 Advance value (In Rs.) is calculated at ______rate in case of sanctioning

rupee loan against balance held in RFC (HCD) account

a) Notional b) TT Selling c) TT Buying d) FCTC buying

7 RFC (HCD) scheme replaced the earlier ______scheme

a) NRE b) NRO c) FCNR (B) d) RIFEE


255

8 Depositor on attaining the status of NRI again, would be eligible to transfer the balances of RFC (HCD) account to _______account

a) NRE b) FCNR (B) c) Both (a) & (b) d) None of above

9 Balances under RFC (HCD) are exempted from _____requirements

a) CRR b) SLR c) Both (a) & (b) d) None of above

10 Tax on interest income from RFC (HCD) is exempted till NRI remains

_______ a) Resident but not ordinarily resident b) NRI c) PIO d) None of above

11 A person resident in India may open an account in foreign currency under

________scheme

a) Resident Foreign Currency (Home Coming Deposit) b) Resident Foreign Currency (Domestic) c) Either of (a) or (b) d) None of above

12 Accounts under RFC (Domestic) will be opened as ______

a) S/B b) C/A c) TDR d) STDR

13 The account under RFC (Domestic) can be maintained in ______currencies

only

a) USD, GBP, EURO b) USD, JPY, GBP c) EURO, USD, JPY d) GBP, EURO, JPY

14 The minimum balance required for opening the account under RFC (Domestic) scheme in USD and EURO currencies is _______

a) 250 b) 500 c) 750 d) 1000


256

15 The minimum balance required for opening the account under RFC (Domestic) scheme in GBP currency is _______

a) 250 b) 500 c) 750 d) 1000

16 Under RFC (Domestic) Account, the maximum balance in the designated currencies can be upto _______

a) 100000 b) 200000 c) 500000 d) No limit

17 The balances of all the accounts opened under RFC (Domestic) scheme will be classified in ____segment

a) IB b) C&I c) P d) DBD

18 The transactions under RFC (Domestic) account will be at _____rate

a) TT Selling b) Fixed Notional c) TT Buying d) FCTC buying

19 A small legend “____________” is branded on the reverse of each cheque of cheque book issued to the account holder of RFC (Domestic)

a) Name b) Purpose c) Both (a) & (b) d) None of above

20 Consequent upon change of status from resident to non-resident, the balances in RFC (Domestic) account can be transferred to ______account

a) NRO b) NRE c) FCNR (B) d) Both (b) & (c)


257

KEY TO ASSIGNMENT – 3 (IB) ( RFC ACCOUNTS) 1 c 2 b 3 a 4 c 5 d 6 a 7 d 8 c 9 c 10 a 11 b 12 b 13 a 14 b 15 a 16 d 17 c 18 b 19 b 20 d


258

INTERNATIONAL BANKING ASSIGNMENT-4 MISC

1 For conducting forex business, our branches are categorised in _______categories

a) A & B b) C-1 & C-2 c) Both (a) and (b) d) None of above

2 Which of the following rates is the most favourable to the customer ;

a) TT selling rate c) FC Note selling rate b) Bill selling rate d) FCTC selling rate

3 For advance remittance Imports, which rate will be applied:

a) T.T.Selling b) Bill Selling c) T.C.Selling d) C.N.Selling

4 For outward remittance, arising out of handling import bills by way of

retirement of documents under L/C, which rate will be applicable:

a) T.T.Selling b) Bill Selling c) T.C.Selling d) C.N.Selling

5 When our Nostro Account has already been credited, which rate will be applicable:

a) T.T.Buying b) Bill Buying c) D.D.Buying d) T.C.Buying

6 For negotiation of export bills, which rate will be applicable:

a) T.T.Buying b) Bill Buying c) D.D.Buying d) T.C.Buying

7 For payment of DDs drawn on us, which rate will be applied:

a) T.T.Buying b) Bill Buying c) DD Buying d) T.C.Buying

8 For purchasing clean instruments or sending them for collection, which type

of instruments are considered as ineligible:

a) Mutilated b) Stale c) Post-dated d) All of above


259

9 The Cooling period pertaining to collection of clean instruments is treated

between:

a) 10 to 14 days b) 10 to 15 days c) 10 to 21 days d) None of above

10 Under Cheque Truncated System (CTS), cheque in original are sent to:

a) FD Kolkatta b) Respective LHO c) Respective ZO d) Not sent

11 In case, cheque is returned unpaid under CTS, ___________would be sent to Singapore Branch.

a) Original Cheque b) Zerox copy of cheque c) Image Return Document d) None of above

12 Nostro account means a) “Our Account with you”

b) Foreign Currency account maintained by us with a foreign bank/branch abroad

c) Both a & b are correct d) None of the above

13 Foreign Department (FD), Kolkatta has been renamed as

a) Global Link Services c) None of these b) Global Marketing Unit d) No change

14 What is the difference between a Forex “A” category branch & Forex “B” category Branch;

a) “A” Category branches can open and maintain Nostro Accounts while “B” Category branches can not. b) “A” category branches can do both Trade & Service related transactions while “B” category branches can not c) “A” category branches can only open and maintain Nostro accounts, while “B” Category branches operate on the Nostro accounts) d) “A” category branches can do all types of transactions while “B” category branches can only handle service related transactions.


260

15 A foreign draft in case of Inward Remittance for value equal to/exceeding USD ________must bear 2 signatures. a) 1,000 b) 5,000 c) 10,000 d) 50,000

16 If the advice is not received within one month from the payment of draft, in case of Inward Remittance, the matter will be reported to:

a) Concerned bank b) Correspondent Bank c) GMU Kolkatta d) Not to be reported 17 Which is not true as regard to the basis of quoting forex rates: a) Banks deal in currencies – They buy & Sell currencies like any commodity b) Currencies are bought cheaper and sold costlier so that Banks can make profits c) The inter bank rates are basis for quoting rates to the customers d) All are correct 18 Which of the followings is not true :

a) Rates for small value transactions are fixed at the beginning of the day – called Card rates b)Card rates are applicable for transaction with rupee value of < 10 lacs c) For transactions of > 10 lacs the inter bank rate prevalent at that time forms the basis- referred to as online rates

d) Both card rates and on-line rates are obtained through IFM

e) All are correct


261

KEY TO INTERNATIONAL BANKING ASSIGNMENT- 4 MISC

1 c 2 a 3 a 4 b 5 a 6 b 7 a 8 d 9 b 10 d 11 c 12 c 13 b 14 a 15 a

16 c 17 d 18 d


262


ASSIGNMENT – 5 REMITTANCE PRODUCTS

1 SBI-Express product is a----------

a) Inward Remittance Product b) Outward Remittance Product c) Both a & b d) Product for Exporters

2. Similar product on the lines of SBI-Express Remit (US) has been rolled out for

the remitters in following country/ countries :

a) USSR b) UK c) Australia d) UK & USSR

3 What is the main objective of launching SBI-Express product?

a) INR funds flow from Gulf b) Funds flow from any country c) INR funds from Gulf and other countries d) None of above

4 What is the size of minimum remittance (per transaction) under SBI-Express?

a) Rs 500 b) Rs 5000 c) Rs 50000 d) No such restriction

5 What is the size of maximum remittance (per transaction) under SBI-Express?

a) Rs 50000 b) Rs 1000000 for Middle East c) Rs 500000 d) No such restriction

6 What is the per calendar quarter limit of remittance for Blue Collared Workers/

Professionals under SBI-Express?

a) Rs 5 Lacs/ 10 Lacs b) Rs 10 Lacs/ 15 Lacs c) Rs 5 Lacs/ 15 Lacs d) Rs 10 Lacs/ 25 Lacs

7 What is the per calendar half year limit of remittance for Blue Collared Workers/

Professionals under SBI-Express?



263

8 What is the per calendar half year limit of remittance for Blue Collared Workers/ Professionals under SBI-Express?


9 When was new Remittance product “SBI Express Remit” launched?

a) 01-02-2005 b) 25-02-2005 c) 01-01-2006 d) 01-12-2005

10 “SBI Express Remit” has been launched with the objective of-------

a) Targeting NRIs b) Targeting NRIs in US c) Targeting both NRIs and residents d) None of the above

11 What are the purposes covered for remittance under “SBI Express Remit”?

a) Family maintenance b) Transfer of funds to remitter’s NRI a/c a) Remittances favouring foreign tourists visiting India b) All the above

12 In which currency funds are remitted under “SBI Express Remit” (US)?

a) USD, GBP,EURO b) INR d) USD d) USD,GBP,EURO,JPY

13 What is the quantum of remittance (Min. & Max ), per day, under“SBI Express Remit”?

a) USD 100 & 10000 b) USD 50 & 5000 c) USD 500 & 10000 d) USD 100 & 1000

14 What is the max. aggregate remittance limit (per week) under“SBI Express

Remit”? a) USD 10000 b) USD 15000 c) USD 20000 d) USD 30000

15 What is the max. aggregate remittance limit (per month) under“SBI Express Remit”?

a) USD 10000 b) USD 15000 c) USD 25000 d) USD 30000


264

16 What is the maximum aggregate remittance limit (per quarter ) under“SBI

Express Remit”? a) USD 50000 b) USD 75000 c) USD 80000 d) USD 40000

KEY TO ASSIGNMENT –IB- (REMITTANCE PRODUCTS- I)

1 a 2 b 3 c 4 a 5 b 6 c 7 d 8 c 9 b 10 b 11 d 12 d 13 b 14 b 15 d 16 c


265

International Banking ASSIGNMENT -6

REMITTANCE PRODUCTS-II 1 What is the maximum aggregate remittance limit ( per half year) under “SBI

Express Remit”? a) USD 100000 b) USD 120000 c) USD 130000 d) USD 150000

2 What is the maximum aggregate remittance limit ( per year) under “SBI Express Remit”?


3 How many times remittances are permitted (per week/month) under “SBI Express

Remit”? a) 4/6 b) 3/6 c) 2/8 d) 1/4

4 How many times remittances are permitted (per quarter/half year) under “SBI

Express Remit”? a) 4/6 b) 8/16 c) 10/20 d) 16/24

5 How many times remittances are permitted (per year) under “SBI Express Remit”? a) 30 b) 40 c) 50 d) 60

6 How many accounts can be used for debit instructions under “SBI Express Remit”?

a) 3 b) 1 c) 2 d) 4

7 What is the transaction fees under “ SBI Express Remit”? a) $ 2 for all remittances b) No fee is chargeable c) Rs.100 per transaction d) $ 1 for remittance $ 50 to $ 99, nil for $ 100 & above


266

8 What are the issue and courier charges for demand drafts under “SBI Express Remit”?

a) $ 2 for all remittances b) Rs 50 for $50 to $ 1000, nil for higher value c) $ 1 for remittance $ 50 to $ 99, nil for $ 100 & above d) No charges

9 Which of the followings is correct in the case of Instant Transfer ?

a) It is a real time rupee remittance facility from SBI branches in 18 countries

to beneficiary’s account maintained in any branch in India; b) It is available to branches of Associate Banks through NEFT; c) Available to non-account holders of our foreign branches at certain centres d) All of the above. 10. The nodal branch for Western Union Tie Up is ? a) Overseas Branch Mumbai b) NRI Branch, Kochi c) Overseas Branch, Calcutta d) D. N. Road, Mumbai

11. Which of the followings is true in case of a Western Union Tie Up ?

a) Remitter remitting money abroad from WU Counters is given MTCN which is a ten digit secret number: b) Beneficiary to go to any authorized branch with valid proof of identity; c) WU is responsible for ensuring compliances under RBI guidelines and AML measures at the send side of transaction: d) a & b e) All of the above

12 What is the maximum number of transactions a receiver can receive in a calendar year through WU?

a) 6 b) 10 c) 12 d) No such restriction

13 What is the size of maximum remittance (per transaction) under WU?

a) Rs 50000/ USD 1000 b) Rs 120000/ USD 2500 c) Rs 500000/ USD 10000 d) No such restriction


267

14 What is the maximum cash amount paid out to the receiver under WU?

a) Rs 100000 b) Rs 50000 c) Rs 120000 d) No such restriction

15 e-Remit is :

a) A web based product offered at SBI Singapore for making remittances to India

b) This facility can be used by all individuals who are residents of Singapore

c) Customers of banks which are members of eNETS payment system can use this facility worldwide

d) All are correct e) Only ‘a’ & ‘b’ applicable

KEY TO ASSIGNMENT –IB-6 (REMITTANCE PRODUCTS- II)

1 b 2 d 3 b 4 d

5 a 6 a 7 d 8 b

9 d 10 b 11 e 12 c

13 b 14 b 15 d


268

International Banking Assignment-7

Release of Foreign Exchange-I

1 Foreign currency travelers cheques are valid for _____from the date of issue

a) 1 year b) 2 year c) 5 year d) Infinite period

2 While encashing FCTC, passport no. etc. will be noted down on _________

a) Traveller cheque b) Payment Voucher c) Zerox copy of TC d) None of above

3 After encashing the purchase transaction of FCTC, it will be entered in:

____________

a) R-return b) XOS return c) BEF statement d) None of above

4 In case of outward remittance through TTs/SFMSs/DDs, which form will be signed by applicant, if remittance is exceeding USD 500 for payment against imports?

a) A 1 b) A 2 c) A 3 d) A 4

5 In case of outward remittance through TTs/SFMSs/DDs, which form will be

signed by applicant, if remittance is exceeding USD 5000 for payment against non-imports?

a) A 1 b) A 2 c) A 3 d) A 4

6 Which is not true in case of release of foreign exchange for foreign travel:

a) Xerox copies of passport and visa to be obtained in case of non customer b) In case of account holders the same to seen/verified and details noted on standard application form c) The customer should produce the air ticket for the purpose of verification d) The customer should not be asked to produce the air ticket


269

7 Currency notes to Indians going abroad can be issued upto USD _____or its equivalent per person, except persons going to Iraq, Libya, Nepal & Bhutan

a) 1000 b) 3000 c) 5000 d) 10000

8 Authorised Dealers (ADs) can release foreign exchange upto a maximum of USD ________ for Business Visit a) 10000 b) 15000 c) 20000 d) 25000

9 ADs can issue upto USD 25000 for_______

a) International Seminars b) Specialised Training c) Study Tour d) All of above

10 Indians going abroad can take outside India / or bring into India (other than

Nepal & Bhutan) Indian currency notes upto an amount not exceeding Rs. _____ per person

a) 1,000 b) 7,500 c) 5,000 d) 10,000

11 For medical treatment abroad, ADs can issue foreign exchange upto USD

______ :

a) 25000 b) 50000 c) 75000 d) 100000

12 For studies abroad ADs can issue foreign exchange upto USD _______ to meet expenses towards tuition fee and books etc :

a) USD 100000/- per academic year from close relatives in India b) Upto USD 100000/- per financial year from balances held in their NRO accounts c) Both a & b d) Either of a & b

13 ADs are empowered under FEMA to release foreign exchange upto USD _______ for taking up employment abroad

a) 10000 b) 50000 c) 100000 d) 200000


270

14 For private visits to any country (except Nepal and Bhutan), ADs can release foreign exchange upto USD _______, without any age limit

a) 10000 b) 50000 c) 100000 d) 200000

15 A person going abroad on private visit/s can be released foreign exchange

not exceeding USD 10000 as under:

a) Per visit per member of the family without any age limit for each visit, irrespective of number of visits in the year

b) Per annum per member of the family without any age limit, irrespective of number of visits c) Per annum per member (only adult) of the family irrespective of number of visits d) None of these

16 ADs can issue foreign exchange upto USD ______for meeting the

maintenance expenses of close relatives residing abroad.

a) 1000 b) 5000 c) 10000 d) 100000

17 How much foreign exchange can be gifted by a resident Indian individual to

close relatives/ friends abroad ? a) USD 1000 b) USD 5000 c) USD 10000 d) USD 200000

18 FEMA has empowered ADs to issue foreign exchange for a maximum of USD

_______ for subscription to newspaper and magazine etc.

a) 5000 b) 15000 c) 25000 d) 100000

19 How much foreign exchange can be released by ADs for remittance of Prize

Money for sports?


20 Upto USD _______ per person can be released by ADs to a person going

abroad on emigration

a) 25000 b) 50000 c) 75000 d) 100000


271

21 Currency notes to Indians going to Iraq & Libya can be issued upto USD

_____or its equivalent per person

a) 1000 b) 3000 c) 5000 d) 10000

22 Currency notes/ coins to Indians going to Iran, Russian federation and other Republics of Commonwealth of Independent States can be issued upto USD _____or its equivalent per person

a) 5000 b) 3000 c) 10,000 d) Full foreign exchange

KEY TO ASSIGNMENT – IB 7

Release of Foreign Exchange-I

1 d 2 b 3 a 4 a 5 b 6 c 7 b 8 d 9 d 10 b 11 a 12 c 13 c 14 a 15 b 16 d 17 d 18 c 19 a 20 d 21 c 22 d

*****


272

International Banking ASSIGNMENT – 8

RELEASE OF FEX-II

1 How many days in advance can a resident seek release of foreign exchange before proceeding abroad :

a) To be purchased in a way that the same to be used within 180 days of issue b) If not used within 180 days, the same should be surrendered to the AD c) Only ‘ a’ is applicable d) Both ‘a’ & ‘b’ are applicable

2 What is the maximum limit upto which a resident can retain foreign currency

notes ?

a) USD 1000 b) USD 5000 c) USD 2000 d) No limit

3 What is the maximum limit upto which a resident can retain foreign currency

coins?

a) USD 1000 b) USD 5000 c) USD 10000 d) No limit

4 Name the card of our bank that offers freedom to shop anywhere in the world?

a) SME Credit Card b) Kisan Gold Card c) Vishwa Yatra Card d) Artisan Credit Card

5 For encashing AMEX FCTC, following instructions have been issued :

a) All FCTC handling branches to obtain a Merchant Code from Amex by

Code which will be retained as a permanent record at the branch.

b) Each time prior to encashment of the FCTC, the branch to log on to

AEB’s online Authorization Home page and input the particulars of FCTC

and the merchant code allotted to the branch.

e) If the FCTC under reference is genuine, the branch will get an approval

code online which should invariably be mentioned on FCTC .

f) The branch will then pay the FCTC, if it is otherwise in order.

g) All are applicable.


273

6 SBI Vishwa Yatra Card can be used at

a) Visa Electron merchant establishments worldwide b) Visa Electron merchant establishments worldwide (ex. Nepal/ Bhutan) c) Visa ATMs worldwide. d) Both ‘a’ & ‘b’ e) Both ‘b’ & ‘c’

7 SBI Vishwa Yatra Card can be used in which currency?

a) USD b) GBP c) Euro d) All of above

8 What is the minimum amount for which Vishwa Yatra Card can be initially loaded?

a) USD 100 b) 250GBP, 400EURO and USD 500 c) USD 1000 d) USD 10000

9 What is the maximum amount for which Vishwa Yatra Card can be used besides

usual USD ceiling?

a) USD 100 b) USD 500 c) USD 1000 d) GBP & EURO equivalent of USD 10000

10 Which rate will be applied while selling Vishwa Yatra Card?

a) TT Selling b) Bill Selling c) TT Buying d) TC Buying

11 Which rates will be applied for purchasing the unspent balance in Vishwa Yatra

Card?

a) Bill Buying b) Bill Selling c) TT Buying d) TC Buying

12 Refund of Vishwa Yatra Card is permitted after _____working days after return of customer in India

a) 3 b) 6 c) 9 d) 12


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13 Under Liberalised Remittance Scheme of RBI, resident individuals can remit upto

USD _________ per calendar year

a) 5000 b) 15000 c) 200000 d) 35000

14 For availing the facility of Liberalised Remittance Scheme, the resident individual

must have maintained the account with the bank for a minimum of _____years

a) 1 b) 2 c) 3 d) 5

15 The transaction under Liberalised Remittance Scheme will be reported by branches on______

a) Monthly basis b) Quarterly basis c) Half yearly d) Not to be reported

16 International Credit Card can be used to meet foreign travel expenses upto----- per annum prescribed under FEMA; a) 5000 b) 15000 c) 10000 d) 25000

17 What is the minimum reload amount for Vishwa Yatra Card ?

a) USD 100 b) 125GBP, 200EURO and USD 250 c) USD 1000 d) USD 10000

18 Transactions through Vishwa Yatra Card can be as under :

a) Cash withdrawal at ATM –minimum USD 100 and maximum USD1000 per day

b) Transaction at Pos –min. no limit and max. upto balance in the card c) Both a & b are correct d) No restriction on min. or max. amount

*****


275

KEY TO ASSIGNMENT –8 (IB)

RELEASE OF FEX-II

1 c 2 c 3 d 4 c 5 e 6 e 7 d 8 b 9 d 10 b 11 a 12 b 13 c 14 a 15 a 16 c 17 b 18 c

*****


276

International Banking ASSIGNMENT –9 (IB) LETTER OF CREDIT

1 Letter of Credit are subject to various articles of _______ a) N.I.Act b) UCPDC 600 c) Company’s Act d) None of above

2 In case of Letter of Credit, opening bank provides _________

a) Cash Credit b) Term Loan c) Undertaking to pay d) Bank Guarantee

3 The beneficiary under a letter of credit is a) the bank opening the credit b) the customer of the opening bank c) the confirming bank d) the exporter 4 A letter of credit is addressed to a) the beneficiary b) the negotiating bank c) the reimbursing bank d) none 5 Which type of L C was removed from UCP 600 ? a) Confirmed L C b) Revolving LC c) Green Clause LC d) Revocable LC 6 UCP rules are framed by a) ICC b) UNO c) WTO d) G 7 Countries

7 Red Clause Letter of Credit refers to special clause authorizing for _______

a) Transfer b) Renewal without amendment c) Advance to beneficiary upto shipment d) Advance to beneficiary before shipment

8 Green Clause Letter of Credit refers to special clause authorizing for ______

a) Transfer b) Renewal without amendment

c) Advance to beneficiary before shipment d) Advance to beneficiary upto shipment


277

9 Back to Back Letter of Credit refers to special clause that L/C is issued with _________

a) Transferability b) On security of another L/C c) Renewal d) Advance to beneficiary upto shipment

10 RBI approval for opening the Letter of Credit is to obtained if the tenor of Bills of Exchange exceeds _____days from the date of Bill of Lading

a) 60 b) 90 c) 180 d) 360

11 Import Letter of Credit opened is advised and restricted for negotiation to _

a) Our Foreign Office b) Banks with agency arrangements c) GMU Kolkatta d) None of above

12 The terms of an irrevocable Letter of Credit can be amended if ______agree

a) Beneficiary b) Applicant c) Opening Bank d) All of above

13 If documents are not received within _____days after validity date, the

documentary credit will be deemed as expired

a) 15 days b) One month c) Two months d) Six months

14 Under UCP 600 the phrase ‘Reasonable time’ of UCP 500 was substituted

with a) 5 days b) 7 banking days c) 5 banking days d) 10 days 15 Back-to-Back LC is issued to a) Importer Customer b) Exporter Customer c) Exporter Customer who has received Export LC d) None of these 16 In case of Confirmed LC, confirmation will be added by a) LC Issuing Bank b) LC Advising Bank c) Reimbursement Bank d) None of these


278

17 Incoterms cover a) ownership and transfer rights b) Contracts of carriage c) rights and obligations of parties to contract of sales d) none of these 18 The price quoted by the seller for the product a) will vary depending upon the incoterm chosen b) is irrespective of incoterm c) will be the base price; the effect of incoterm to be added later d) none of these 19 UCPDC had been first brought out by ICC in the year a) 1919 b) 1933 b) 1975 c) 2007 20 In a letter of credit, the advising Bank is responsible for

a) Financial standing of the issuing bank b) Financial standing of the applicant c) Payment of the LC amount d) Authenticity of the LC

KEY TO ASSIGNMENT –9 (IB) LETTER OF CREDIT

1 b 2 c 3 d 4 a 5 d

6 a 7 d 8 d 9 b 10 c 11 b 12 d 13 b 14 c 15 c 16 b 17 c 18 a 19 b 20 d


279

International Banking ASSIGNMENT –10 (IB)

FINANCING IMPORTS & FC FUNDING

1 Supplier’s Credit refers to credit for ______into India extended by overseas suppliers with a maturity less than 3 years

a) Export b) Import c) Both (a) & (b) d) None of above

2 Buyer’s credit refers to loans for payment of imports into India arranged by

importer’s bank or financial institution with a maturity less than _____

a) One year b) Two years c) Three years d) Five years

3 Buyer’s credit and Supplier’s credit for 3 years and above comes under the category of _______

a) L/C b) ECB c) B/G d) None of above

4 The settlement of funds in SBI’s Supplier’s Credit Product is done within

_____days of shipment

a) 60 b) 90 c) 180 d) 360

5 Buyer’s Credit can be arranged by our branches for the importer’s client by

issuing ___________favouring our Foreign Offices/Foreign Banks

a) Guarantee b) Letter of Undertaking (LOU) c) Letter of Comfort (LOC) d) Any one of above

6 For import of non-capital goods, Guarantees, Letter of Undertaking (LOU) and

Letter of Comfort (LOC) can be issued for a period of_____


7 For import of capital goods, Guarantees, Letter of Undertaking (LOU) and

Letter of Comfort (LOC) can be issued for a period of _______



280

8 The amount of Buyer’s Credit should not exceed USD ______million per import

transaction a) 10 b) 20 c) 30 d) 50

9 Maximum interest (all in cost ceilings) in Trade Credits ( Supplier’s Credit &

Buyer’s Credit) is as under

a) LIBOR+ 350bps b) LIBOR+ 100bps c) LIBOR+ 200bps d) LIBOR+ 250bps

10 All in cost ceilings in Trade Credits ( Supplier’s Credit & Buyer’s Credit) is applicable as prescribed by

a) FEDAI b) Banks have freedom to fix c) RBI d) None of above

11 Which is not applicable in the case of FCNB (B) Loan Scheme

a) Can be extended for financing WC & TL b) Banks have freedom to fix interest rate, tenor and purpose of loan c) RBI/GOI permission required for sanction d) Loans cannot be used for personal purpose and acquisition of consumer

durables

12 FCNR(B) Loans can be extended in following currencies

a) USD,AUD, GBP,YEN b) USD,EURO, GBP,YEN c) USD,AUD, GBP,EURO d) USD,CAD, GBP,YEN

13 FCDL Loan is normally given for a period of

a) 6 months to 12 months b) 3 months to 12 months c) 3 months to 11 months d) None of above

14 FCTL Loan is normally given for a period of

a) 1 to 5 years b) 3 to 5 years

c) 1 to 3 years, and upto 5 years with the permission of HO d) None of above


281

15 Which is not applicable in the case of Swing Facility

a) It envisages conversion from foreign currency to rupee at the option of borrower b) Normally conversion to take place at the time of interest re-setting c) Conversion on any other date not permitted d) Conversion on any other date permitted with prepayment penalty

16 Which is not applicable in the case of ECB-Automatic route

a) Prior approval from RBI not required b) AD to process application , give approval and forward the application to RBI c) Loan to be released only after RBI allots the number

d) ECB can be utilized for repayment of existing Rupee loans

17 The maximum amount of ECB that can be raised by a corporate, except Corporate in the Hotels, Hospitals and Software sectors, in a financial year is ---

a) USD200 million b) USD300 million c) USD500 million d) USD100 million

18 The maximum amount of ECB that can be raised by a corporate in the Hotels,

Hospitals and Software sectors, in a financial year is ------


19 ECB above USD 20 million and upto USD 500 million or equivalent is

sanctioned for a period with minimum average maturity of---------- years


20 ECB upto USD 20 million or equivalent is sanctioned for a period with minimum average maturity of---------- years


21 ECB upto USD --------- million or equivalent can have call/put option provided

the minimum average maturity of 3 years is copiled before exercising the option



282

KEY TO ASSIGNMENT – 10(IB)

FINANCING IMPORTS & FC FUNDING

1 b 2 c 3 b 4 c 5 d 6 a 7 c 8 b 9 c 10 c 11 c 12 b 13 c 14 c 15 c 16 d 17 c 18 d 19 b 20 a

21 c

*****


283

International Banking ASSIGNMENT –11 (IB)

IMPORTS

1 The normal time limit for settlement of import payment is------ from the date of shipment

a) 30 days b) 6 months c) 21 days d) None of above

2 Consolidated statement of Trade Credits is submitted to RBI at----- intervals

a) Fortnightly b) Monthly c) Quarterly d) Half yearly

3 Documents evidencing import are to be preserved for ---- period from the date

of verification, except cases under investigation

a) 2 years b) 1 year c) 3 years d) Not required

4 Non submission of evidence of import by the importers is to submitted to RBI

in------return

a) XOS b) ENC c) BEF d) STAT

5 Non submission of evidence of import by the importers is to submitted to RBI

at half yearly intervals ( June/ Dec.) in the case of imports exceeding USD----or its equivalent

a) USD 25000 b) USD 100,000 c) USD 50000 d) None of these

6 Evidence of import/ Bill of Entry is to be submitted by the importer within a

period of----from the date of remittance

a) 21 days b) 3 months c) 30 days d) 6 months

7 Fully utilized Exchange Control Copy of Import Licence is to be retained by-

a) RBI b) Importer c) AD d) DGFT


284

8 Ads to permit advance payment in the case of a PSU/Deptt./ Undertaking of Central / State Govt for import of goods without insisting upon a bank guarantee up to----- .

a) USD25,000 b) USD500,000 c) USD15,000 d) USD100,000

9 If importer is unable to obtain bank guarantee and AD is satisfied about the track record and bonafide of the importer, the requirement of BG/Stand-by LC may be waived if the advance remittance for import of goods is upto----

a) USD25,000 b) USD500,000 c) USD 200,000 d) USD100,000

10 If a PSU/Deptt./ Undertaking of Central / State Govt. is not in a position to

obtain a guarantee from the international bank of repute, it is required to seek specific waiver for the BG from _____if the advance remittance exceeds USD100,000

a) RBI b) DGFT c) M.O.F., Govt of India d) AD

11 Advance remittance permissible for import of services without BG is for---------

- a) USD25,000 b) USD500,000 c) USD50,000 d) USD100,000

12 Remittances against import of books can be received within a period of------

provided interest payment , if any , is as per instruction in this regard

a) 12 months b) 3 months c) No time limit d) 6 months

13 A no-objection certificate, Chartered Accountant’s certificate, Certificate of

payment of I.T. are required for remittance against

a) Import under penalty b) Replacement import c) Import of films on lease/ rental basis d) Import of Aircraft/ Aircraft engine/ Helicopter on lease basis


285

14 Non submission of evidence of import by the importers in the case of imports

upto USD 100,000 is to be followed up with the importer as under:

a) Not required to be followed as per RBI guidelines b) To be followed as per Bank’s internal guidelines c) Both (a) & (b) are applicable

15 Which is not applicable in case of Diamond Dollar Account a) Customer to have good track record of 3 years and average annual turnover of Rs. 5 crores or above during 3 preceding licensing years b) Customer to apply through AD to RBI for approval c) Customer can have only max. 5 accounts d) Only a & b applicable

e) All are applicable

16 When the imports are made in non- physical form, a certificate from------would serve the purpose of import evidence

a) Chartered Accountant b) RBI c) Authorised dealer d) Exporter

17 Where the value of import on DP basis falls between USD 25000 and USD

100,000 and is for non-customer, the following document as an evidence of import may be obtained

a) Self declaration only b) A Certificate from Chartered Accountant c) A Certificate from Overseas exporter d) None of the above

18 Import licenses are normally issued for the ------ value of the goods to imported

a) FOB b) CIF c) Insured d) None of the above

19 Discrepant documents under LC if not negotiated are to be sent for collection under Uniform Rules for Collection (URC 522)

a) True b) False


286

19 Documents accompanying a usance bill of exchange will always be delivered against acceptance to the drawee

a) True b) False

20 LC calls for ‘clean on board’ B/L. The B/L submitted has notation ‘on board’

without mentioning ‘clean’. Can the B/L be accepted as non-discrepant?

a) Yes b) No

KEY TO ASSIGNMENT – 11(IB) IMPORTS

1 b 2 c 3 b 4 c 5 b 6 b 7 c 8 d 9 c 10 c 11 b 12 c 13 c 14 c 15 e 16 a 17 b 18 b 19 b 20 a

*****


287

International Banking ASSIGNMENT –12(IB) FORWARD CONTRACTS

1. Forward Contract can be booked for ______transactions

a) Purchase b) Sale c) Both (a) & (b) d) None of above

2. While booking forward contract, it has to be ensured that due date does not fall

on ______

a) Saturday b) Sunday c) Public Holiday d) All of above

3. Forward contract should not be booked for ______

a) Import bills b) Export bills a) Advance remittance d) None of above

against exports

4. Forward Exchange Cover Facility can not be provided against balance lying in _______

a) FCNRB b) NRE S/B Account c) NRE C/A Account d) Both (b) & (c)

5. The limit of Forward Contracts in case of Importer/Exporter is fixed on the basis

of average of previous ______years or previous year turnover, whichever is higher

a) 2 b) 3 c) 4 d) 5

6. In case an Importer/Exporter desire higher limit than the one fixed by AD, they

will have to take approval from _____

a) FICCI b) Finance Ministry c) Commerce Ministry d) RBI

7. If an exporter wants to avail Forward Contract facility, his overdue bills should not exceed ___% of the turnover

a) 10 b) 15 c) 20 d) 25


288

8. A forward purchase contract can be booked if the applicant submits:

a) Firm contract signed by buyer and seller b) Communication from buyer accepting seller’s quotation and exporter’s

undertaking to produce the contract within one month from the date of booking

c) Irrevocable Letter of Credit d) Any of the above

9. Branch has to contact the customer _____days prior to the date of expiry of forward contract

a) 3 b) 5 c) 7 d) 10

10. Statement of outstanding Forward Contract will be sent to FD Kolkatta at _____intervals on Form _____

a) Monthly, 106 b) Quarterly, 116 c) Half-Yearly, 126 d) Yearly, 136

11. Before booking a forward sale contract, it should be ensured that the importer

submits ________ a) A firm order/Import Elcee/Import Collection bill b) Invoice c) Bills of Exchange d) Any one of above

12. In case of import bill, the delivery period should not be more than _____days from the date of shipmen

a) 60 b) 90 c) 180 d) 360

13. ADs while booking a forward sale contract should ensure that….

a) Import items are freely importable under current foreign trade policy b) Suitable limit for forward contract is sanctioned to the importer c) Both (a) & (b) d) None of above

14. In case of any exchange gain arising out of the cancellation of forward contract before due date, it will be passed on to the customers as under

a) The customer can opt for settlement of full gain on due date b) The customer can opt for upfront settlement of exchange gain at discounted rate (discount equal to PLR) by choosing option‘To Day’


289

c) Both (a) & (b) d) Only a is applicable

15. A forward contract can be cancelled ________

a) Prior to the expiry date b) On expiry date c) Either of (a) or (b) d) None of above

16. Following instruction/s are true in the case of Unusable contracts :

a) Maximum time limit for cancellation of undelivered contracts – 7th working day if the contract involves pipeline transaction, otherwise 2nd working day b) No profit passed on if cancelled after due date c) All losses to customer in such cases d) All are applicable.

17. In case of any exchange loss arising out of the cancellation of forward contract, it

will be recovered from the customers as under

a) The exchange loss on cancellation before maturity date to be booked upfront i.e. on cancellation date

b) The amount recovered would be the loss discounted at simple savings bank rate for the intervening period

c) The customer has the option to have settlement on maturity date d) Only a & b applicable e) All are applicable

18. A forward sale contract will be cancelled on ________rate

a) TT Buying b) TT Selling c) Bill Buying d) Bill Selling

19. A forward purchase contract will be cancelled on _____rate

a) TT Buying b) TT Selling c) Bill Buying d) Bill Selling

20. Part Cancellation of forward contract ______

a) Can be done b) Cannot be done c) Can be done if a request from the customer is received d) None of above


290

21. While canceling a forward contract, the matter should be reported to GMU Kolkatta on______

a) Same day b) Next day c) 3rd day d) 7th day

22. In case 15th day from the due date of a forward contract falls on Saturday or Public Holiday, the contract will be cancelled on _________

a) Preceding working day b) Succeeding working day c) Either of (a) & (b) d) None of above

23. In case of Cross Currency Forward Contracts (CCFC), how many exchange risks are covered?

a) 1 b) 2 c) 3 d) 4

24. Which type of exchange risks are covered under Cross Currency Forward Contracts (CCFC)?

a) Misc. Foreign Currency (MFC) against USD b) USD against rupee c) Both (a) & (b) d) None of above

25. Cross Currency Forward Contracts (CCFC) can be booked for a minimum amount of USD ________

a) 1,00,000 b) 2,00,000 c) 5,00,000 d) 10,00,000

26. In case of Cross Currency Forward Contracts (CCFC), minimum delivery amount should be equivalent to Rs. ______lac

a) 5 b) 10 c) 15 d) 25


291

KEY TO ASSIGNMENT – 12 (IB) FORWARD CONTRACTS

1 c 2 d 3 c 4 d 5 b 6 d 7 a 8 d 9 c 10 b 11 a 12 c 13 c 14 c 15 c 16 d 17 d 18 a 19 b 20 c 21 a 22 b 23 b 24 c 25 a

26 b


292

International Banking ASSIGNMENT – 14 (IB)

RETURNS

1 The information pertaining to inflows and outflows of foreign exchange is submitted by ADs to RBI through ______

a) XOS Statement b) R-Return c) BEF Statement d) Bill of Entry

2 R-Returns are submitted by _______branches

a) All branches dealing in forex b) A Category c) B Category d) Both (b) & (c)

3 R-Return is submitted _______

a) Once a week b) Twice a week c) Once a month d) Twice a month

4 R-Return is submitted on _____of the month

a) Ist day and 15th day b) 7th day and 21st day c) 15th day and last day d) None of above

5 A separate R-Return (Nostro) and a separate R-Return (Vostro) for

_____currency is to be submitted

a) USD b) GBP c) EURO d) All currencies

6 R-Returns are now to be submitted to RBI ______, and should reach RBI

within 7 calendar days of the relative fortnight

a) Branch-wise b) Bank-wide c) Both (a) & (b) d) None of above

7 Branches are now required to submit R-Return data in electronic format FETTERS 6.2 to GMU-K only within---- days and retain the hard copy, duly signed, at the branch as permanent record

a) 7 days b) 3 working days c) 3 days d) 7 working days


293

8 Non-Resident Deposits – Comprehensive Single Return (NRD – CSR) is sent

to RBI through floppy/e-mail at ________intervals


9 STAT 10 return being submitted to RBI at monthly intervals pertains to the details of _____accounts

a) NRE b) NRO c) RFC d) FCNR (B)

10 BAL return containing the foreign currency balances of authorized dealers and rupee balances of non-resident banks is sent to RBI at _________intervals


11 Name the statement which is sent to RBI at quarterly intervals containing the

details of permissions granted for opening of trading/non-trading office/posting of representatives abroad

a) STAT 10 b) ORA c) BAL d) R-Return

12 BEF statement showing details of imports for which documentary evidence

has not been received from importers, is being sent at half yearly intervals to ______

a) RBI b) FD Kolkatta c) Both (a) & (b) d) None of above

13 Which statement containing the particulars of outstanding exports bills is

being sent by ADs at half-yearly intervals (June/December) to RBI?

a) BAL b) ORA c) XOS d) BEF

14 Which return is sent to RBI at yearly intervals (in December), containing the details of export bills written off?

a) BAL b) EBW c) XOS d) BEF


294

15 A return containing details of pending ECGC claims is sent to LHO at

_______intervals


16 Details of foreign contributions received by associations/organizations under

FCRA 1976 is sent to LHO at ______intervals


17 The information on the number of applications received and total amount remitted under the Liberalised Remittance Scheme is to be submitted to RBI-----------intervals

a) Monthly b) Quarterly

c) Half-yearly d) Yearly 18 The information on the number of applications received and total amount remitted under the Liberalised Remittance Scheme should reach RBI within -------- days of the following month

a) 7 days b) 5 days c) 3 days d) 10 days

19 The information on Un- hedged Foreign Currency Exposure of Corporates is sent at ----- intervals a) Monthly b) Quarterly

c) Half-yearly d) Yearly 20 Report on Booking of Forward Contracts is sent on ----- intervals a) Monthly b) Quarterly

c) Half-yearly d) Yearly 21 Advance payment against Exports of Rs.5 crores & above is sent on----- intervals a) Monthly b) Quarterly

c) Half-yearly d) Yearly


295

22 Branches have been advised to furnish the compliance levels in relation to

FCRA 1976 at ------ intervals to their respective LHO/SBU


KEY TO ASSIGNMENT – 14 (IB)

RETURNS

1 b 2 d 3 d 4 c 5 d 6 b 7 b 8 a 9 c 10 b 11 b 12 a 13 c 14 b 15 b 16 c 17 a 18 b 19 b 20 a

21 c 22 b


296

ASSIGNMENT – IB-15

EXPORTS-I

1 Under FEMA, a person cannot export until he possess:

a) RBI Licence b) Licence from FICCI c) Importer/Exporter Code d) None of above

2 The exporter has to give an undertaking to realize the proceeds within

________from the date of shipment

a) 3 months b) 6 months c) 9 months d) 1 year

3 In which form, exporter has to declare the exports?

a) A 1 b) A 2 c) GR d) A 3

4 The exporters are exempted to declare if their exports do not exceed USD ____or its equivalent

a) 10000 b) 15000 c) 20000 d) 25000

5 GR passed by customs contains ____digits running serial no

a) 4 b) 6 c) 8 d) 10

6 The exporter has to submit the duplicate copy of GR along with necessary

documents to ADs within _____days from the date of shipment( Not required upto US$ 25000)

a) 7 b) 14 c) 21 d) 28

7 After negotiation of the documents, AD is required to report the transaction to

RBI in the form ____

a) FD 124 b) ENC c) A 2 d) A 4


297

8 After realization of relative bill, AD will send the duplicate copy of GR duly verified to a) RBI b) Respective LHO c) Respective ZO d) Kept for verification by auditors

9 If the bills exceeding USD 25000 remain outstanding for more than the stipulated period, these should be reported to RBI at half-yearly intervals through ______ a) R Return b) XOS statement c) BEF statement d) None of these

10 If the export bill is not realized within the stipulated period, it should be crystallized at _______rate a) Bill Buying b) Spot TT Selling c) Bill Selling d) T.C. Selling

11 Gift of goods exceeding Rupees ---------- in value requires approval of RBI a) 2 lacs b) 7 lacs c) 5 lacs d) 10 lacs

12 XOS statement will be sent to RBI as on ____________________

a) 31st Dec & 30th June b) 31st March & 30th Sep c) 31st Dec d) 30th June

13 ADs can permit GR waiver for export of goods free of cost for export as under a) 2% of annual turnover in preceding three years, max. Rs.5lacs

b) 2% of annual turnover during three preceding licensing years, max Rs.10 lacs for status holder exporters

c) Both a & b applicable d) None of these

14 The period of realization and repatriation to India of the amount representing full export value of goods or software exported has been enhanced to _____ till 30.06.10

a) 3 months b) 12 months c) 6 months d) None of these

14 If the exporter is unable to get his bill realized within 6 months from the date of shipment, he must seek extension of time from:

a) RBI b) Finance Ministry c) FICCI d) Authorised Dealer


298

15 RBI has authorized ADs to extend the time if exports have not been realized

within 6 months, provided:

a) Value not exceeding USD 1000,000/- (USD 1 million) b) Extension is for 6 months at a time c) ADs are satisfied about the reasons d) All of above

16 The ceiling of USD 1 million in case of powers vested with ADs for extension

of time for overdue export bills will not apply, if the exporter has filed a suit against importer abroad. In such case, extension may be granted for ____months at a time

a) 6 b) 9 c) 12 d) None of above

17 Before considering the extension of time of overdue export bill beyond 1 year

from the date of shipment, ADs should ensure that total outstanding exports of the exporter should not exceed ____% of the average of export realizations during the preceding ____financial years

a) 5, 1 b) 10, 2 c) 10, 3 d) 10, 5

18 For getting extension of time for overdue export bill, the exporter has to apply in _______form a) A 1 b) A 2 c) ETX d) All of above

19 After granting the necessary extension for realization of overdue export bill, it

will be entered by ADs in ______________

a) R return b) BEF statement c) XOS statement d) Not required

21 Ads can approve proposals for export of goods on consignment basis for realization of export proceeds upto ---- from the date of shipment

a) 60 b) 90 c) 180 d) 360


299

KEY TO ASSIGNMENT – IB-15 EXPORTS-I

1 c 2 b 3 c 4 d 5 d 6 c 7 b 8 d 9 b 10 b 11 c 12 a 13 c 14 b 15 a 16 d 17 a 18 c 19 c 20 c 21 d


300


ASSIGNMENT –16 (IB) EXPORTS-II

1 ADs handling shipping documents have been permitted by RBI to allow

reduction in export value not exceeding ___% of invoice value

a) 5 b) 10 c) 15 d) 25

2 The exporter seeking reduction in invoice value, will submit an application on

form ______

a) RDX b) A 1 c) A 2 d) A 3

3 The exporters who are in the business for more than 3 years and their export outstandings do not exceed 5 % of the average annual export realization during preceding 3 calendar years, can be allowed reduction in invoice value upto ___%

a) 5 b) 10 c) 15 d) No limit

4 If an exporter wants reduction in invoice value for an amount exceeding 10%

of invoice value, he will have to submit the application to AD who in turn will forward it to ____

a) FICCI b) RBI c) Finance Ministry d) Commerce Ministry

5 ADs are authorized to allow remittance of agency commission (on submission of application by the exporter) if declared normally in ____

a) Export Bill b) GR c) Bills of Exchange d) All of above

6 ADs can allow remittance of agency commission even if it is not declared on GR provided it is mentioned in ______ a) Export Bill b) Bills of Exchange c) A valid agreement between

Exporter & beneficiary d) All of above


301

7 Full amount of a export bill will be shown as ____transaction and remittance of agency commission as ____transaction, in R-Return

a) Purchase, Sale b) Sale, Purchase c) Purchase, Purchase d) Sale, Sale

8 While remitting agency commission, in addition to application, _______will be obtained from the exporter?

a) A 1 b) A 2 c) Both (a) & (b) d) None of above

9 Which of the following international trade transaction does not require prior

approval from the RBI ?

a) Acquisition of immoveable property abroad for Overseas offices b) Counter Trade Agreements

c) Export of goods on Lease, Hire etc. d) Participation in Trade Fairs abroad

10 If an exporter is unable to realize his export bill within the stipulated time despite his best efforts, ADs can allow for _____

a) Filing a suit b) Write off of bill c) Both (a) & (b) d) None of above

11 Before allowing self write-off of unrealized bills, including reduction in invoice

value, ADs will ensure that amount of such bills does not exceed ____% of the total export proceeds realized during the previous calendar year

a) 10 b) 15 c) 20 d) 25

12 The amount of the bill proposed to be written off must have remained

outstanding for _____year of more

a) 1 b) 2 c) 3 d) 5

13 The details of written off bills will be sent to RBI at ______intervals



302

14 At the end of December each year, a statement will be sent to RBI for written off bills during the year on Form _______

a) XOS b) R-Return c) EBW d) BEF

15 Whose responsibility is to ensure that the documents do not reveal any

material inter se discrepancies in regard to description of goods exported, export value or country of destination

a) Authorised Dealer b) Reserve Bank c) Shipping company d) Importer

16 The period of realization applicable for exports by units in SEZ is------

a) 6 months b) 18 months c) 12 months d) No time limit

17 Prior approval of RBI for change of buyer/consignee in the event of

default by the latter is not required provided: a) Reduction in value, if any involved, does not exceed 25% b) Realisation of export proceeds not delayed beyond 6 months from the date of export c) Both (a) & (b) d) None of above

18 Claims settled in rupees by ECGC should not be construed as export realization in foreign exchange

a) True b) False

19 Branches not submitting a monthly certificate to GMU-K by 10th of following month in case of PCFC Loans and EBR bills crystallized on due date would not be granted Fund Angle Clearance for further loans

a) True b) False

20 In terms of the amendment to rule no. 2 A.2 by FEDAI, the following instructions are applicable to crystallization of unpaid export bills

a) ADs are free to decide on the period for crystallization b) Bills to be crystallized at spot TT selling rate c) Exchange difference arising out of crystallization to be recovered from or passed on to the customer

d) All of above e) Only b & c


303


EXPORTS-II 1 d 2 a 3 d 4 b 5 b 6 c 7 a 8 b 9 d 10 b 11 a 12 a 13 d 14 c 15 a 16 d 17 c 18 a 19 a 20 d


304


EXPORTS-III

1 An exporter will be classified as Export House if export turnover is ---- over past three years plus current year’s export realisation

a) Rs. 20 crores b) Rs. 50 crores c) Rs. 25 crores d) Rs. None of these

2 For getting a Star Export House status, the export turnover over 3 years should

be Rs. _____crore

a) 50 b) 100 c) 200 d) 300

3 If an export house has achieved export turnover over three years to the tune of

Rs. 500 crore, it will be classified as ______. a) Star Trading House b) Trading House c) Premier Trading House d) None of these

4 For getting a Star Trading Export House status, an export house has to make export turnover for Rs. ____crore over 3 years

a) 500 b) 1000 c) 2500 d) 2000

5 An export house has made export turnover to the tune of Rs. 10000 crore over 3

years, it will be classified as _____Export House

a) Star Trading House b) Premier Trading House c) Trading House d) None of these

6 The units in Special Economic Zone (SEZ) are permitted to credit ____% of its foreign exchange receipts in their FC (SEZ) Account

a) 25 b) 50 c) 75 d) 100

7 A person resident in India may open with ADs an account in foreign currency to

be known as ______Account

a) NRE b) NRO c) FCNR d) EEFC


305

8 Which type of credit facility can be granted against the security of balance held in EEFC Account?

a) C/C & T/L b) L/C & B/G c) Both (a) & (b) d) No facility

9 All exchange earners can retain upto ___% of their foreign exchange earnings in their EEFC Account

a) 50 b) 75 c) 100 d) Not permitted

10 EEFC A/c by export customer will be maintained as ______

a) Non-interest bearing Current Account b) Interest bearing Term Deposit c) Non-interest bearing Saving Bank Account d) Interest bearing Saving Bank Account

11 EEFC Account can be opened in how many currencies?

a) 2 b) 4 c) 6 d) 8

12 In which currencies, EEFC Account can be opened?

a) USD, GBP, JPY, EURO b) USD, JPY, AUD, EURO c) JPY, GBP, AUD, EURO d) EURO, USD, GBP, AUD

13 For opening an EEFC Account, minimum balance of USD______or its

equivalent, has been prescribed a) 1,000 b) 5,000 c) 10,000 d) 25,000

14 The balance lying in EEFC Account are exempted from the purview of---

a) CRR b) SLR c) Both (a) & (b) d) None of above

15 EEFC Account holders are required to obtain prior approval of _____pertaining to remittance for purchase of trade marks

a) RBI b) Finance Ministry c) Commerce Ministry d) Industry Ministry


306

16 Pre-shipment credit in Foreign Currency (PCFC) is linked to ____interest rates

a) SBAR b) MIBOR c) LIBOR d) Bank Rate

17 PCFC is operative at _____branches

a) A b) B c) C 1 d) Designated

18 Designated branches have to obtain Funds Angle Clearance (FAC) from GMU Kolkatta for all fresh disbursement of PCFC/EBR for amount exceeding ____

a) 5.00 lac b) In all cases, irrespective of amount c) 15.00 lac d) 20 .00 lac

19 PCFC is available by way of _______

a) Term Loan b) Cash Credit c) Both (a) & (b) d) Overdraft

20 In case of PCFC, maximum period of credit allowed is ____days from the date of disbursement :

a) 180 days b) Beyond 180 days and upto 360 days 2% extra c) Both ‘a’ & ‘b’ applicable d) None of the above

21. Fund Angle Clearance obtained from GMU-Kolkatta is to used as under:

a)15 days allowed for its disbursement, b) If not availed within 15 days, the same will be automatically cancelled, c) Next request for same facility can be made only after 45 days of original FAC date d) However, fresh request can be made before 45 days if borrower pays a charge of i%

per annum from the date of original FAC. e) All of the above applicable.


307

KEY TO ASSIGNMENT –17 (IB) EXPORTS-III

1 a 2 b 3 b 4 c 5 b 6 d 7 d 8 d 9 c 10 a 11 b 12 a 13 a 14 c 15 a 16 c 17 d 18 b 19 b 20 c 21 e


308


EXPORTS-IV

1 PCFC will be adjusted at the ruling TT Selling Rate for the currency concerned, if

no export takes place even within _____days, inclusive of transit period

a) 60 b) 90 c) 180 d) 360

2 PCFC will be adjusted through the proceeds of export bills under ____

a) EPC b) EBR c) Both (a) & (b) d) None of above

3 Discounting of EBR bill has to be reported to FD on line if the amount exceeds USD ______ or its equivalent in other permissible currencies

a) 25,000 b) 50,000 c) 1,00,000 d) Irrespective of amount

4 Interest recovered on EBR/PCFC loan will be recovered from ________

a) Relative EBR/PCFC account b) Customer’s other account c) Either a or b d) None of above

5 Cover under Individual Packing Credit Guarantee of ECGC is from the date of disbursement of loan to :

a) Date of shipment b) Date of discontig of bill c) Date of credit to nostro account d) Date of repayment of rupee loan

6 PCFC/EBR transactions pertaining to Non-Designated Branches will be reported in R-Return of ________

a) Non-Designated Branch b) Designated Branch c) FD Kolkatta d) Respective LHO


309

7 Gross Interest Earnings received by Designated Branch on PCFC/EBR transactions of Non-Designated Branch will be transferred by the designated branch to ______

a) Non-Designated Branch b) Respective LHO c) FD Kolkatta d) Retained by Designated Branch

8 Income received by Designated Branch on account of Forex Remuneration and

handling/processing charges pertaining to PCFC/EBR transaction of NDB will be transferred to ________

a) Non-Designated Branch b) Respective LHO c) FD Kolkatta d) Retained by Designated Branch

9 Statement of PCFC will be sent to FD Kolkatta at ______interval

a) Fortnightly b) Monthly c) Quarterly d) Half-yearly

10 Statement of bills discounted under EBR will be sent at fortnightly interval to

a) RBI b) FD Kolkatta c) FICCI d) Finance Ministry

11 The rate of interest on Pre-shipment finance in Foreign Currency upto 180 days

a) LIBOR + 1% b) LIBOR + 2% c) LIBOR + 3.50% d) LIBOR - 1%

12 In case of running account facility advance can not be used for liquidating

EPC/PCFC of more than ----days a) 180days b) 60 days

c) 360 days d) None of these 13 Which is not true in the case of Pre-shipment finance in Foreign Currency a) Sharing of PCFC by supplier & EOH permitted

b) Partly in rupee and part PCFC for same export order permitted c) Forward contacts can not be booked

d) All are applicable


310

14 Which is not true in the case of Post-shipment finance a) Sanction of EPC to accompany sanction of post shipment facilities b) Separate limits for LC/ non-LC bills c) Both a & b d) None of these 15 Which is not true in the case of SBI Exporters Gold Card Scheme a) Account standard for last three years b) Unit has not incurred losses during past 3 years c) Limit valid for 3 years d) All are true 16 Which is not true in the case of SBI Exporters Gold Card Scheme a) Stand by limit of 20% of assessed limit to meet sudden orders b) Step up by 10% at end of 1st & 2nd year by BM allowed c) Interest concession for pre-shipment & post-shipment d) All are true 17 A stand by limit of 20%, sanctioned over and above the limit, can be utilized by the exporter under SBI Exporter Gold Card Scheme, for a maximum period of _____days in one instance a) 60 b) 90

c) 180 d) 365

18 Under SBI Exporter Gold Card Scheme, eligible exporters can be sanctioned pre-shipment credit limits for _____days with some concession in rate of interest

a) 60 b) 90 c) 180 d) 365

19 Under SBI Exporter Gold Card Scheme, eligible exporters can be sanctioned

post-shipment credit limits for _____days with some concession in rate of interest

a) 60 b) 90 c) 180 d) 365

20 A fresh application for credit facility under SBI Exporter Gold Card Scheme will be disposed off within ____days

a) 10 b) 15 c) 20 d) 25


311

21 An application for renewal of limit under SBI Exporter Gold Card Scheme will be disposed off within _____days

a) 10 b) 15 c) 20 d) 25

23 Request for sanction of adhoc limits under SBI Exporter Gold Card Scheme will be processed within _____days

a) 7 b) 14 c) 21 d) 28

24 Due to the difficulties faced by the exporters, the requirement of overdue bills not

exceeding 10% of the previous year’s export turnover has been dispensed with for a period of__

a) From 01.04.09 to 31.03.2010 b) From 01.09.09 to 30.09.2010 c) From 01.04.09 to 31.03.2011 d) Has been permanently dispensed with

KEY TO ASSIGNMENT – 18 (IB) EXPORTS-IV

1 d 2 b 3 d 4 b 5 b

6 a 7 d 8 a 9 b 10 c 11 b 12 c 13 c 14 d 15 d

16 c 17 c 18 d 19 d 20 b 21 a 22 d 23 d 24 a

*****


312


COLLECTIONS

1 Documentary collections are covered under the provisions contained in-----

a) UCPDC 600 b) ISBP c) URC522 d) None of above

2 ‘Documentary collection’ means collection of

a) Financial documents accompanied by commercial documents b) Commercial documents not accompanied by financial documents c) Either (a) or (b) d) Only (a)

3 Clean collection means collection of a) Financial documents accompanied by commercial documents b) Commercial documents not accompanied by financial documents c) Financial documents not accompanied by commercial documents d) None of above

4 Under a collection, if full details regarding interest and charges to be collected from the drawee are given, without specifying if such charges can be waived or not, the presenting bank can waive interest and bank charges without reference to the seller or his bank

a) True b) False

5 A collection contains a bill of exchange payable at a future date. However , it

does not contain the instruction whether the commercial documents are to be released against acceptance( D/A) or payment( D/P). The collecting bank will release the commercial documents

a) Against acceptance b) Against payment c) The collecting bank to refer to seller or his bank for seeking instructions

d) None of these


313

6 Under URC522 which of the following statement is not true in respect of

documentary collections

a) Banks assume no liability or responsibility for consequences arising out of the interruption of their business by strikes and lockout b) Partial payments will be accepted if specifically authorized. However, unless otherwise instructed, the presenting bank will release the documents after full payment has been received c) The presenting bank is responsible for the genuineness of any signature or for the authority of any signatory to sign the acceptance d) All are applicable

7 Centralised cheque collection and export bill payment centre is

a) GMU-K b) IBG, Corporate centre c) GLS d) Overseas Branch, Mumbai

8 Which of the following statement is not true in respect of cheque collections

a) All credits in customer’s account in respect of cash letter to be released after cooling period of respective currency b) Individual cheques above USD10,000 to be collected under FCS-Final Credit Service c) GLS collects USD cheques payable in USA, GBP cheques payable in UK and EURO payable in Euro countries only d) All are true

9 Under GNRCC, which of the following is not applicable a) Under it, our Nostro account is credited immediately on receipt of cheque at other end

b) The credit is reversed if the instrument is returned on or before cooling period c) The credit is not reversed if the instrument is returned after cooling period d) All are applicable


314

10 Financial Action Task Force ( FATF) on money laundering was established by

the G-7 summit in


11 Which of the following is/are the important USA enactments to combat money laundering

a) FATF b) USA OFAC c) USA PATRIOT Act d) All of above

e) b & c

12 USA Patriot Act was originally enacted in


13 Under USA Patriot Act’s 120 Hour Rule , the deadline for submission of

information within 120 hour from the receipt of request is applicable to our branches situated in USA

a) True b) False

14 When we make remittances or receive remittances, the payment instructions

are checked through a software – OFAC Filter set up at GMU-Kolkatta

a) True b) False 15 Which of the following is a stage of Money Laundering

a) Introduction b) Acceptance c) Integration d) All of above

16 Inward Remittance Cell has been set up at :

a) Overseas Branch, Mumbai b) GMU-Kolkatta c) Overseas Branch, Kolkatta d) None of the above

17 IRC will process the remittances upto __for retail customers at prevailing Card rate, except remittances received for opening of accounts:

a) USD 5,000 b) USD 50,000 c) USD 10,000 d) None of above


315

18, For transactions above USD 5,000 or its equivalent, as per FEDAI guidelines, IRC will facilitate re-conversion at level rate if the customer request within ____ days of the transaction: a) 10 days b) 7 days c) 15 days d) Conversion not permitted 19. IRC has the capability to send the remittances received for credit of customers account with other Banks: a) True b) False


COLLECTIONS 1 c 2 c 3 c 4 a 5 b 6 c 7 c 8 d 9 d 10 b 11 e 12 c 13 a 14 a 15 c 16 b 17 c 18 b 19 a

*****


316


FCNB PREMIUM ACCOUNT 1. Which of the following is true in the case of FCNB Premium Account

a) It is the earlier called “Dollar Premium Account” as it was available in USD only. b) It is available in all the six designated currencies (viz. USD, GBP, EURO, AUD,

CAD and JPY). c) It combines the benefits of a FCNR (B) deposit with Forward Cover to give

enhanced return to its depositors. d) All of the above. 2. Which of the following is true in the case of FCNB Premium Account

a) Deposit Tenor under FCNB is 1 year b) Minimum deposit: USD 2000 / GBP 2000 / EUR 2000 / AUD 2000 / CAD

2000 / JPY 2,00,000 c) Both principal and interest are payable in Indian Rupees at a predefined

forward rate only and to be credited on maturity in NRE Savings bank account only

d) All of the above

3. Which of the following is true in the case of FCNB Premium Account

a) No auto renewal facility is available b) Yields from this product are presently higher than FCNR (B) deposit

booked in corresponding foreign currency c) Both a & b are true

4. Which of the following is true in the case of FCNB Premium Account a) No interest payable if the FCNR (B) deposit is closed before maturity. b) In case of cancellation of Forward Contract by the customer, cancellation

charges and exchange gain/loss to be borne by the customer at prevailing rate. c) Only authorized branches can open ‘FCNR (B) – Premium Account’ d) All of the above.


FCNB PREMIUM ACCOUNT

1. d 2. d 3. c 4. d


317

SYSTEMS AND PROCEDURES IN AGRICULTURE - I 1 The relaxed security/Margin norms are to be applied------------- in

agricultural advances.

a) Borrower wise b) Facility wise c) Account wise d) None of the above

2 In case of Agricultural advances, cost of photograph is borne by --------

a) borrower b) bank c) borrower and bank on 50:50 d) No photograph to be obtained

3 In case of advances to weaker sections, inspection charges should be

levied @------------% of prescribed rates.

a) 100 b) 50 c) 25 d) No charges

4 Who executes document AB1?

a) Borrower b) Guarantor c) Both a& b d) None of the above

5 Deed of guarantee Document AB2 can be revived by the Guarantor by

executing ---.

a) AB4 b) AB5 c) AB7 d) None of the above

6 AB7 document is obtained for --------------

a) Guarantee Agreement b) Conversion of crop loan into Agri. Term Loan

c) Revival letter from the guarantor d) None of the above 7. Detailed opinion reports are to be complied only on such borrowers whose

aggregate Agricultural advances exceed ------------.

a) Rs. 25,000/- b) Rs. 50,000/- c) Rs. 1,00,000/- d) None of the above

8. While granting limits under KCC, the scale of finance, is prepared by--------. a) District Level Technical Committee b) District Consultative Committee c) Block level Consultative Committee d) None of above


318

9. While granting limits under KCC, the scale of finance, is approved by ------

a) District Technical Committee b) District Consultative Committee c) Block level Consultative Committee d) None of above

10. While financing crop loan adopting scale of finance, following margins are

required----

a) 40 % b) 25 % c) 15 % d) No margin

11. Who is eligible for crop loan / KCC

a) Owner Cultivators b) Tenant farmers c) Share Croppers d) All of the above

12. Interest on Crop loan on current dues is to be applied

a) May & November b) April & September c) On due dates d) Half yearly

13. What is the margin on Crop loans up to Rs. 1,00,000/- where cost of

cultivation is worked out by the Bank.

a) 5% b) 10% c) 25% d) NIL

14. What is the margin on Crop loans above Rs. 1,00,000/-where cost of

cultivation is worked out by the Bank.

a) 5% to 10% b) NIL c) 25% to 30% d) 15% to 25%

15. Purpose for which KCC can be granted.--------------

a) Crop production b) Ancillary activities c) Contigent Needs d) All of the above

16. In Contract Farming, under tie-up arrangement crop loan can be granted

without collateral security up to a. Rs.25000 b. Rs 50000 c. Rs.100000 d. Rs 200000


319

17. Loans up to Rs.------- for financing distribution of inputs for the allied activities is treated as indirect agriculture advance under Priority sector lending.

a) 25.00 lacs b) 40.00 lacs c) 50.00 lacs d) None of above

18. Loans for financing to dealers in drip irrigation/sprinkler irrigation

system/agricultural machinery, irrespective of their location, is treated as indirect agriculture advance under Priority sector lending up to Rs.-------.

a) 30.00 lacs b) 40.00 lacs c) 50.00 lacs d) None of above

19. In case of crop loans, norms for obtaining collateral security have been

relaxed for limits up to ---------

a) Rs. 10,000/- b) Rs.25,000/- c) Rs. 50,000/- d) Rs.5,00,000/-

20. In case of Agricultural Term loans (where assets are created), norms for

obtaining collateral security have been relaxed for limits up to ---------

a) Rs. 10,000/- b) Rs. 25,000/- c) Rs. 50,000/- d) Rs. 1,00,000/-

Answers SYSTEMS AND PROCEDURES IN AGRICULTURE - I

1 2 3 4 5 6 7 8 9 10 b b b a b b c a b d 11 12 13 14 15 16 17 18 19 20 d c d d d d b a c d


320

SYSTEMS AND PROCEDURES IN AGRICULTURE

AGR- II 1. In case of Agricultural Term loans (where assets are not created), norms for obtaining collateral security have been relaxed for limits up to --------- a) Rs. 10,000/- b) Rs. 25,000/- c) Rs. 50,000/- d) Rs. 1,00,000/- 2. In case of crop loans/ agri. term loans norms for obtaining margins have been relaxed for limits up to a) Rs. 10,000/- b) Rs. 25,000/- c) Rs. 50,000/- d) Rs. 1,00,000/- 3. As per the revised guidelines of RBI, the branches are required to prepare a. Village wise credit plans b. Branch credit plan. c. Both Village wise credit plans and Branch credit plan d. None of the above 4. Rabi crop is sown/planted in the months of---------------- a) October/November b) Feb/March c) June/July d) None of the above 5.Kharif Crop is sown/planted in the months of---------------- a) October/November b) Feb/March c) June/July d) None of the above 6.Kharif crop is harvested in the months of---------------- a) October/November b) Feb/March c) June/July d) None of the above


321

7. AB1(SIMPLE) is applicable to farmers sanctioned with loan of Rs ___ a) Rs.50000 b) Rs.1 lac c) Rs.2.00 lac d) none of the above 8.The account should have been a Standard Asset in the books of other Bank/FI during the preceding -----years in case of take over of Agriculture Advance. a) 2 b) 3 c) 5 d) None of the above 9. ATL accounts with minimum -------years repayment programme left, are eligible for take over. a) 2 b) 3 c) 5 d) None of the above 10.For take over of ACC account from other Bank/Financial institution, minimum amount should be-- a) Rs. 1.00 lac b) Rs.10.00 lac c) Rs. 20.00 lac d) No such stipulation 11.For take over of ATL account from other Bank/Financial institution for allied activities, minimum amount should be------------ a) Rs. 1.00 lac b) Rs.10.00 lac c) Rs. 20.00 lac d) No such stipulation 12. For take over of ATL account from other Bank/Financial institution for other than allied activities, minimum amount should be------------ a) Rs. 2.00 lac b) Rs.10.00 lac c) Rs. 20.00 lac d) No such stipulation


322

13. Bank pays interest on the current account balances maintained by our sponsored RRBs @ a) 3.5% b) No interest is being paid c) 5% d) 8% 14. The margin money requirement for agricultural term loan upto Rs. 1,00,000/- is a) 10% b) 15% c) 20% d) No margin 15. Where movable assets are not created and the loan amount is over Rs.1,00,000/-, the borrower has to furnish security of a) DP Note & Delivery letter, loan agreement b) Only DP Note c) Hypothecation of assets d) Mortgage of land 16. The document AB6 is a. Guarantee Agreement b) Letter to the borrower demanding repayment of crop loan c) Revival letter d. Application for rephasement of term loan 17. The quantum of refinance extended by the NABARD for dryland development and waste land development (where individuals are the beneficiaries) will be to the extent of a) 50% of bank loan b) 60% of bank loan c) 75% of bank loan d) 100% of bank loan 18. As per the revised guidelines of RBI , obtaining the No-due Certificate from service area bank branch ........ a. is must for the lending branch . b. is dispensed with for a Agl. loan amount upto Rs. 50,000/-


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19. The present approach by Govt. towards rural lending is a) Service Area Approach with relaxed norms b) Village adoption c) Multi Area Approach d) Scattered lending 20. Revival letters AB4 & AB5 have to be affixed with Rs.______ Revenue stamp a) 0.25 b) 1.00 c) No Stamp d) Varies from State to State

Answers SYSTEMS AND PROCEDURES IN AGRICULTURE - II

1 2 3 4 5 6 7 8 9 10 d d b a c a b a a a 11 12 13 14 15 16 17 18 19 20 b a b d d b d b a d


324

SYSTEMS AND PROCEDURES IN AGRICULTURE III

1. Limitation period for the hypothecation agreement AB1 in case of agricultural term loans

a) 3 yrs. From the date of revival b) 3 yrs. From the date of demand c) 3 yrs. From the due date of repayment d) 3 yrs. From the due date of repayment / first overdue instalment from the date of demand whichever is earlier.

2. For conversion of crop loans to term loans which of the following is required

a) Annawari certificate b) VAO Certificate c) Technical Rep ort d) MDO certificate

3. DCB register is to be maintained for

a) ATL only b) ACC only c) ATL and ACC d) None

4. After disbursement of the crop loan, inspection should be undertaken

a) Monthly b) Quarterly c) Half yearly d) No inspection to be undertaken till harvest time

5. In case of irregular crop loan, inspection should be undertaken

a) Monthly b) Quarterly c) Half yearly d) At the time of harvest

6. In case of regular ATL where moveable assets are created inspection should be undertaken

a) Monthly b) Quarterly c) Half yearly d) No inspection for regular ATL account


325

7. In case of irregular ATL where moveable assets are created inspection should

be undertaken

a) Monthly b) Quarterly c) Half yearly d) At the time of harvest

8. In case of regular ATL where immoveable assets are created inspection after

grounding of assets should be undertaken a) Monthly b) Quarterly c) Half yearly d) Annually

9. In case of irregular ATL where immoveable assets are created inspection should be undertaken a) Monthly b) Quarterly c) Half yearly d) Annually

10. The document can be revived by

a Obtaining a Revival letter b. Part payment c. Acknowledgement Of debt d. All the above

11. “SILVICULTURE” refers to cultivation of

a) Forest Trees b) Grasses c) Fodder crop d) Medicinal plant

12. Validity period of equitable mortgage is _______yrs

a) 3 b) 12 c) 13 d) 14


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13. Mixed Farming means a) Multiple cropping b) Availing both crop loan & Gold loan c) Undertaking cultivation and allied activities d) None 14. To avail unrestricted refinance from NABARD, the maximum level of Gross NPA to Loan & advances outstanding as at the end of the year preceeding previous year is a) 5% b) 10% c) 15% d) 20% 15. The limitation period of mortgage is 12 years which will be counted from a. Execution of document b. Date of creation of mortgage c. Due date of repayment d. Date of filing legal suit 16. The mandatory percentage of agricultural advances to Net Bank Credit is ______ a) 15% b) 25% c) 40% d) 18% 17. For the purpose of reporting in performance report, the advances to self help groups (SHGs) should be categorised under a) SBF sub-segment b) SSI sub-segment c) AGR segment d) According to activity of SHG 18. The inspection visits are to be made by the field staff for a) Pre-sanction survey b) Post-sanction c) Recovery of loans d) All the above


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19. Inspection of Agri NPA accounts should be done a.monthly for ACC/KCC b.monthly for ATL c.quarterly for ACC/KCC and ATL d. monthly for ACC/KCC and ATL 20. The inspection charges on loans under agrl. segment with limits above Rs.25,000 & upto 2 lacs is a) 200/ p.a. b) 500/- p.a. c) 10 00/- p.a. d) None of the above

Answers

SYSTEMS AND PROCEDURES IN AGRICULTURE - III

1 2 3 4 5 6 7 8 9 10 d a c d a c a d a d 11 12 13 14 15 16 17 18 19 20 a b c c c d c d d b


328

SYSTEMS AND PROCEDURES IN AGRICULTURE - IV 1. Loan processing charges to be collected while processing a proposal with limits over Rs. 25,000/- & upto Rs. 2,00,000/- lacs under Agrl. Segment is a) Rs.500/- b) Rs.500 per lacs c) Rs.400 per lac d) None of the above 2. Loan processing charges to be collected while processing a proposal with limits above Rs. 2 lacs and up to Rs 1.00 crore under Agrl. Segment is a) 0.5% of the limits b) Rs.250/- per lac c) Rs.500/- per lac d) Not. Applicable to agril. advances 3. Progressive farmers can be financed production credit maximum to the tune of a. SOF recommended by DLTC/SLTC b. 150% of SOF fixed by DLTC/SLTC. c. 200% of SOF fixed by DLTC/SLTC. d. None of the above 4. The progressive farmer means who a) uses advanced pre-harvest / post harvest technologies b) having irrigation facilitiers c) crop productivity is more than the average levels d) Maintaining good track of record for alteast one year e) All of the above 5. Scales of finance for crops fixed by DLTC is a) Net of margin b) including margin c) total cost of cultivation d) None of the above 6. The basic marketing variables are a. Product and Place b. Price c. Promotion d. All of the above


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7. In the case of revival of documents, the guarantor signs the revival letter but borrower refuses to sign. The document is a) Valid in the court of law. b) Not valid in the court of law c) Valid only in DRTs d. Valid in District Courts 8 The Demand Collection and Balance (DCB) register is prepared at the branches a) Monthly b) Quarterly c) Half -yearly d) Yearly 9.D.C.B. register is maintained by the branches for -------. a) P-segment advances only b) C&I and SIB Segment advances only c) ATL and ACC advances only d) All segments of Advances 10. Which of the following is treated as fiscal year for the purpose of maintaining DCB register. a) 1st Jan to 31st Dec. b) 1st April to 31st March. c) 1st July to 30th June. d) None of the above 11.Which of the following should be included in the Demand, while preparing DCB register. a. Amounts due in ACC and ATL Accounts b. Amounts transferred to Recalled Assets account in Agriculture c. Both a & b d. None of the above 12.Total interest debited should not exceed the principal amount in case of short term loans sanctioned to---------. a) High Tech Agri Borrowers b) Small/Marginal Farmer c) DRI borrowers d) None of the above


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13. As per Government directives, the share of weaker section in Bank’s advances should be-------% of Priority sector advances. a) 40% b) 25% c) 180% d) None of above 14. If, targets under Agriculture financing are not achieved, shortfall is to be contributed to a.RBI b.Central Govt. c.Rural Infrastructure Development Fund of NABARD d.None of th e above 15. In case of Agriculture Advance the general provision on standard asset is a) 0.25% b)0.40% c) 1.00% d) 10.0% 16. Up front fee for ATL is waived up to a) Rs.50, 000 b) Rs.1, 00,000 c) Rs.2, 00,000 d) Rs.5, 00,000 17. The purpose of inspection is-------- a) To ensure proper utilization of loans. b) To establish and maintain a close and continuous relationship between the Bank and borrower. c) To ensure prompt repayment of dues. d) All of the above 18.Maximum loan that can be sanctioned to farmers under “Relief measures for farmers indebted to Non-institutional lenders” is-------------. a)Rs. 25,000/- b) Rs.50,000/- c) Rs. 1,00,000/- d) None of the above


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19. The Service Area Approach was introduced w.e.f....................... a. April,1968 b. April,1980 c. April,1989 d. April,1991 20. As per the revised guidelines of RBI , the Service Area concept is a. strictly applicable for all advances b. not applicable for P-segment advances c. not applicable for lendings except under Govt. sponsored schemes.

Answers SYSTEMS AND PROCEDURES IN AGRICULTURE - IV

1 2 3 4 5 6 7 8 9 10 a c c e a d b d c c

11 12 13 14 15 16 17 18 19 20 c b b c a c d b c c


332

RELIEF MEASURES IN AREAS AFFECTED BY NATURAL CALAMITIES – AGR V 1.' Annewari ' declared by Revenue Authority is now a. not required to extend relief measures in areas affected by natural calamities b. required to extend relief measures in areas affected by natural calamities c. must be required to extend relief measures in areas affected by natural calamities d. None of the above 2.'Annewari' indicates..................... a. Rainfall b.Cropping pattern c. Extent to which the crops are damaged due to natural calamity d. None of the above 3.'Annewari' is declared for ............... a. Revenue Village wise b. District as a whole c. Block/Taluka as a whole d. none of the above 4. What are the relief measures to be extended by Banks to the farmers whose crops are damaged /affected by natural calamities? a. Conversion of crop loan b. Rephasement of Agri. Term Loans c. Fresh Crop Loans after conversion of earlier crop loan outstandings d. all the above 5. The amounts of crop loans not collected due to natural calamity should be converted in to term loan for a period up to.........years for farmers other than SF/MF. a. 9 b. 7 c. 5 d. 3 6. The amounts of crop loans not collected due to natural calamity should be converted in to term loan for a period up to.........years for Small /Marginal Farmers. a. 9 b. 7 c. 5 d. 3


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7. Where damage to crops arising out of natural calamity is very severe and has caused acute distress to the farmers and the calamity is for two successive years the branches may in consultation with the Task Force/ Steering Committee of SLBC , grant extension of converted loans for longer periods ranging up to.............years a. 8 to 9 b. 10 to11 c. 3 to 4 d. 5 to 7 8. In extreme cases of hardship arising out of very severe loss to the crops , or occurrence of three successive crop failures and the debt burden being found to be beyond the immediate repaying capacity of the borrowers, conversion for longer period up to a maximum period of ............years may also be considered in consultation with the Task Force/SLBC. a. 11 b. 5 c. 7 d. 9 9. In the case of Small/Marginal farmers, interest on the short term loan which has been converted may be postponed and recovered in the next harvesting/marketing season and there should be no compounding of interest outstanding on the short term loans in such cases. a. True b. False 10. The rate of interest on the short term loans converted on account of natural calamity should be............... a. Higher than the crop loan b. Lower than the crop loan c. the same as was charged on the crop loan 11. What document is required to be obtained from the borrowers/guarantors while granting facility of conversion of crop loan ? a. AB-2 b. AB-6 c. AB-7 d. AB-5


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12.What is maximum repayment period for loan sanctioned under “Relief measures for farmers indebted to Non-institutional lenders” scheme. a) 24 months b) 36 months c) 48 months d) 60 months 13. In the event of natural calamities the Agl. Term loans instalments and interest should be rescheduled for a period of ................years, keeping in view the repaying capacity of the borrowers and extent of damage on account of the natural calamity . a. 3 year and longer if the damage is severe b. 1 years c. 2 years d 3 years maximum 14. In regard to natural calamity where only crop for that year is damaged and productive assets are not damaged, the branches may postpone the payment of instalments during the year of natural calamity, for a period of___ a. Three years b. Five years c. Two years d. One year 15. The facility of reschedulement of Agri. Term Loans where only the crop for that year is damaged due to natural calamity and productive assets are not damaged should not be extended to those borrowers who are income tax payers. a. True b. False 16. The facility of reschedulement of Agri. Term Loans in case of drought should not be extended to those borrowers who are having perennial sources of irrigation except where water supply was not released from canals or irrigation facility was not available from other perrenial sources. a. True b. False 17. In the event of a natural calamity like floods or cyclones where the productive assets are partially or totally damaged and borrowers are in need of a new loan the repayment of total Agl. Term loan including interest liability less the subsidies received from the Govt. agencies and compensation available under insurance schemes may be fixed having regard to the repaying capacity of the borrower and economic life of the new assets financed subject to a maximum period of ...............years. a. 3 b. 5 c. 9 d. 15


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18. Where the crop loan which was converted in to term loan was earlier given against personal security/ hypothecation of crop and the borrower is not able to offer charge/ mortgage of land as security for the converted loan, he should not be denied conversion facility merely on the ground of his inability to furnish land as a security. a. True b. False 19. Branches should not insist on third party guarantees for providing conversion facilities. a. True b. False 20. Margin requirements may be waived and the grants/subsidy given by the concerned State Govt. may be considered as margin while financing fresh crop loans /term loans after conversion/rephasement on account of natural calamity. a. True b. False

Answers

AGRICULTURE - V

1 2 3 4 5 6 7 8 9 10 a c a d d c d d a c

11 12 13 14 15 16 17 18 19 20 c c a d a a d a a a


336

ACC/KISAN CREDIT CARD (KCC) AGR- VI

1. KCC limit comprises of financing for a) Crop production and consumption credit. b) Expenses related to ancillary activities. c) Both a & b d) None of the above 2. Collateral security is required for ACC/KCC above a) Rs.25000 b) Rs.50000 c) Rs.75000 d) Rs. 1,00,000/- 3. For ACC under tie-up arrangement/contract farming obtaining collateral is waived upto a) Rs.50000 b) Rs.75000 c) Rs.1.00 lac d) Rs.2 lakhs 4. For KCC above Rs 1,00,000 if there are genuine difficulties in creation of mortgage/ Charge over land what instructions need to be followed? a) any other appropriate security can be obtained. b) Suitable third party guarantee can also be obtained c) prior permission of controlling authority is required d) all above 5. Margin stipulated for ATL or ACC/KCC of Rs. 1,00000/- is a.10% b.15% c.25% d.nil 6. KCC limit is valid a) For ever b) For 1 year c) For 18 months d) For 3 years


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7.KCC holders up to the age of ---------------------years are covered under Personal Accident Insurance Scheme. a) 50 b) 65 c) 70 d) No age limit 8. Personal Accident Insurance Scheme for KCC holders covers risk up to Rs. ----- in case of death due to accident or permanent total disability i.e. (loss of 2 eyes/2 limbs / 1 eye and1 limb) a) Rs. 1, 00,000/-. b) Rs. 50000/- c) Rs. 25000/- d) None of the above 9.Amount of annual premium to be paid to designated Insurance Co. under Personal Accident Insurance Scheme is ---------------------------- a) 1% of KCC limit per KCC holder b) 2% of KCC limit per KCC holder c) Rs.15/- per KCC holder d) None of the above 10.Under Personal Accident Insurance Scheme, the amount of premium is borne by— a) KCC holder b) Bank c) Shared by Bank and borrower in the ratio of 2:1 d) None of the above 11.Which insurance company is authorised to undertake servicing of business under PAIS? a) National Insurance Company Ltd. b) The Oriental Insurance Company Ltd. c) The New India Assurance Company Ltd. d) Any of the four companies as per zone wise allocation 12.What is the process of premium payment under PAIS? a) Branches sent direct to the company b) Sent by ABU at LHO c) Paid at bank level by the Central Office d)Regional Offices of Commercial Banks will pay the premium to the nearest designated office of the Insurance Company along with the list of KCC holders


338

13.Time limit for lodging claims under Personal Accident Insurance Scheme is---- a) 30 days. b) 60 days. c) 3 months d) None of the above 14. The progressive farmers can be financed up to a maximum of ____ under KCC a) Equal to SOF advised by DLTC. b) Upto thrice above SOF. c) Upto twice SOF by DLTC. d) Assessed on case to case basis 15. While fixing limit of the borrower under KCC, the branch may take into Account production credit requirements of the farmer for________ a) A Month b) A Quarter c) A Half- Year d) A Year 16. The credit limit of borrower under KCC scheme is required to be reviewed---- a) Every Year b) After Two Years c) After Three Years d) Not reviewed 17.Which of the following requirements are treated as ancillary needs --------------- a.Fuel/Power cost. b.Repair & maintenance of Agricultural Machinery/Equipments c.Minor investment of short term nature & Post harvest expenses. d.All of the above . 18. The farmer- borrower can avail contingent credit needs under KCC up to ____ a) 10% of peak credit limit, max. Rs. 5000/- b) 15% of peak credit limit, max. Rs. 10,000/- c) 20% of peak credit limit granted for production purpose d) 20% of total production credit limit


339

19. Margin stipulated for Rs. 2.00 lacs under ACC/KCC based on SOF is a) Nil b) 15 – 25% c) 10 – 15 % d) 20 – 25 % 20. Minimum and maximum loan to be sanctioned under KCC are a)5000/- and no limit b)5000/- and 1.00 crore c)3000/- and no limit d)none of above

(*Minimum KCC limit for Uttaranchal State is Rs1,000/-) 21.The objectives for launching KCC are ________________. a) To provide Credit Cards like SBI Card to get payment from any part of the Country. b) To provide Credit Cards to farmers to avail loan facility within the district. c) To provide adequate and timely support from banking system to the farmers for their short term production credit needs for cultivation of crops, purchase of inputs, in a flexible and cost effective manner. d) All of the above. 22. The following farmers are eligible to get KCC _______________ a.Existing borrowers of the branch/ bank having good track record for the last Two years. b Requiring production credit limit of Rs. 3000/- and above. c.New borrowers including good borrowers of other banks, provided Branch Manager is satisfied with their Credit-worthiness. d.All of the above. 23. The peak credit limit under KCC is fixed on the basis of__________ a) Operational land holding, cropping pattern and scale of finance as Recommended by District Level Technical Committee (DLTC). b) Ancillary needs of the borrower c) Contingent needs of the borrower d) All of the above. 24. Following needs of the farmer are treated as contingent needs under KCC a) Family maintenance expenses. b) Educational and Medical Expenses. c) Social & Religious ceremonies d) Al l of the above.


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25.Credit limit of the borrower under KCC is required to be renewed______ a) Every year b) After 2 years c) Once in 3 years d) Not required 26. Repayment of Crop loan/KCC should be --------- a) Quarterly b) Half yearly c) Linked with Harvesting and Marketing of the Crop. d) None of the above 27.New applicants under crop loan/KCC are not to be insisted upon for submitting ‘No dues” certificates up to a loan limit of Rs.-------------. a) Rs. 10000/- b) Rs. 25000/- c) Rs. 50000/- d) None of the above 28. For Crop loans up to Rs. 25000/-, we recover inspection charges @-------- a.Rs.2.50 per inspection with minimum of Rs.10/- b.Rs.10/- per inspection with minimum of Rs.100/- c.No charges d.None of the above 29. Cheque book can be provided to a. A literate KCC borrower b. A literate KCC borrower with sanction limit of Rs 25,000/- and above c. A literate KCC borrower with sanction limit of Rs 1 lakh and above d. Any borrower availing KCC 30. ATM card can be provided to a. All literate KCC account holders b. A literate KCC borrower with sanction limit of Rs 25,000/- and above c. A literate KCC borrower with sanction limit of Rs 1lakh and above d. Any borrower availing KCC


341

Answers ACC/KISAN CREDIT CARD (KCC) AGR- VI

1 2 3 4 5 6 7 8 9 10 c d d d d d c b c c

11 12 13 14 15 16 17 18 19 20 d d a c d a d c a c 21 22 23 24 25 26 27 28 29 30 c d d d c c b c b a


342

KISAN GOLD CARD &

AGRI CLINIC & AGRI BUSINESS CENTRE AGR- VII

1. Under KGC the quantum of loan is a) Maximum Rs.10 lacs b) Rs.5 lacs minus outstanding in the existing ATL account c) 50 % of the value of the land to be mortgaged as collateral security or 5 times the annual Farm income which ever is less, with a maximum Rs. 10 lacs minus term loan out standing if any at the time of application d) All of the above 2. Consumption loan under KGC can be granted up to a) 20% of the eligible KGC limit b) 30% of the eligible KGC limit c) 40% of the eligible KGC limit d) 50% of the eligible KGC limit 3. Following farmers are eligible to get Kisan Gold Card--------------- a) All Farmers irrespective of their previous track record. b) Only selected farmers with handsome land holding. c) Farmers irrespective of their land holdings, with good track record of repayment in their ACC & ATL accounts for the last two years as on the date of application. d) None of the above 4. What is the minimum margin for consumption loan in KGC scheme? a) 10% b) 15% c) 25% d) 30% 5. The loan sanctioned under KGC scheme is required to be utilised by farmer for___________ a) Purchase of agricultural implements, land development, Bullocks & carts. b) Repair of farm machinery. c) Any other domestic needs like expenditure on account of children's education, marriage, medical expenses etc. d) All of the above 6. Under Kisan Gold Card Scheme, a minimum margin of _______% in the case of invesrment purpose and _______% in case of consumption purposes to be maintained. a.5% & 10% respectively b.15% & 20% respectively c.20% & 25% respectively d.10% & 30% respectively


343

7. How many accounts can be opened by the borrower financed under KGC----- a) 1 b) 2 c) 5 d) any number of a/cs 8. The Kisan Gold Card is valid for a period of ________years. a) One b) Two c) Three d) Five 9. The loans sanctioned under Kisan Gold Card are treated as --------accounts. a) ACC b) ATL c) Term Loan d) None of the above 10. What is the usual norm of repayment under KGC-------- a) 3 to 4 years b) 4 to 5 years c) 6 to 7 years d) 8 to 9 years 11. Kisan Gold Card scheme (KGC) is applicable to a) Small and Marginal farmers only. b) Progressive farmers only c) Highly progressive farmers only d) All farmers irrespective of the size of their land holdings. 12. What are the activities that have recently been excluded from the list of activities financed under KGC? a) Purchase of land b) construction of farm house c) purchase of tractor and accessories d) All the above 13. KGC limit can be sanctioned to a. Existing Borrowers maintaining standard loan accounts for last 2 years. b. Farmers who have closed their accounts without any default & who are not our current customers c.Good borrowers of other banks provided they liquidate their outstanding with other banks d. All the above


344

14. KGC limit can be disbursed for a) purchase of two wheelers b) purchase of agricultural land c) construction of House d) all of above 15. What is the repayment period for loans granted for setting up of Horticulture Orchards? a.5 years b.7 years c. 9 years d.10 years 16. Is there any mechanism for verification of enduse of funds given under KGC? a.Not required where assets are created b.Proof required in case of farm machinery c. To ensure the end use of funds by verification of assets and collection of invoices/cash receipts, within one month from the date of release of the funds d. Not required in any case 17. Loan amount sanctioned under KGC can be disbursed in cash upto a.50% of loan amount b.Only consumption credit component c. No cash disbursal is allowed d. Full extent of credit limit 18. In case of Agri-clinics and Agri-business centres, norms for obtaining collateral security have been relaxed for limits up to ---------. a) Rs. 10000/- b) Rs.25000/- c) Rs. 50000/- d) Rs. 500000/- 19. In case of Agri-clinics and Agri-business centres, norms for obtaining margins have been relaxed for limits up to --------- a) Rs. 10000/- b) Rs.25000/- c) Rs. 50000/- d) Rs. 500000/- 20. Maximum Quantum of loan financed for an individual under Agriclinics & ABC is a) Rs.3 lacs b) Rs.5 lacs c) Rs.10 lacs d) Rs.25 lacs


345

21. Maximum quantum of loan that can be financed under Agriclinics & Agri business centre to be taken up as a group activity is a) Rs.20 lacs b) Rs.30 lacs c) Rs.50 lacs d) Rs1.00 crore 22. Advance for Agri-clinics and Agri-business centres is classified under a.Direct Agriculture Advance b.Indirect Agriculture Advance c.50% as Direct Agriculture Advance d.C&I advance 23. Advance for Agri-clinics and Agri-business centres can be repaid within a. 3-5 years with a moratorium period of 2 years b. 5-10 years with a moratorium period of 2 years c. 7-12 years with a moratorium period of 2 years d. 10 -15 years with a moratorium period of 2 years 24. What is the objective of setting up of Agri-clinics and Agri-business centres? a. To augment support and extension services for agriculture. b. To strengthen transfer of technology and extension of services c. To provide self employment opportunities to technically trained persons. d. all above 25. What is the margins for limits upto Rs 5 lac? a. 5% b. 10% c. Nil d. 15% 26. What is the margins for limits more than Rs 5 lac? a. 5-10% b. 10-15% c. 25%-30% d. 15-25% 27. Whether loans under ACABC are covered under CGTMSE scheme a. Yes, all activities irrespective of loan amount b. Yes, all activities above Rs. 5 lacs c. Yes, few activities are covered d. No 28. What is the quantum of NABARD refinance available under the scheme? a. 25% b. 100% c. 10% d. Not available


346

29. What are instruction regarding educational qualification if the group consists of 5 or more persons? a. All should be Agriculture Graduate b. one among a. should be a post graduate in agriculture c. minimum 2 among group should be Agri Graduates d. all except one of them would have to be agriculture graduate trained under the scheme and the remaining could be non-agri graduate with experience in business development and management. 30. What is the quantum of subsidy available? a. No subsidy b Credit linked capital subsidy @25% of the capital cost of the project funded through bank loan would be eligible c. 33.33% in respect of borrowers belonging to SC, ST, women and other disadvantaged sections and those from North-Eastern and Hill States. d. both b. & c.

Answers KISAN GOLD CARD

& AGRI CLINIC & AGRI BUSINESS CENTRE AGR- VII

1 2 3 4 5 6 7 8 9 10 c a c d d d c a b c

11 12 13 14 15 16 17 18 19 20 d d d a c c d d d c 21 22 23 24 25 26 27 28 29 30 c b b d c d c b d d


347

ARTHIAS PLUS, CROP INSURANCE & PRODUCE MARKETING LOAN

AGR-VIII 1. What is the eligibility criteria under ARTHIAS PLUS scheme? a) Commission agents enjoying good reputation and holding a valid license from the market yard/ board and are in the line of business for the past 3 years. b) Commission agents having receivables from farmers only. c) Commission agents functioning in rural and semi urban markets/mandis. d) all above 2. What is the type of advance ARTHIAS PLUS scheme? a) CC Hypothecation stocks b) CC Hypothecation of book debts not older than 6 months c) Demand Loan d) Term loan 3. What is the periodicity of interest application? a) Monthly b) Quarerly c) Half yearly coincide with harvesting season d) annualy 4. What is the procedure of obtaining statement of eligible book debts? a) Monthly b) yearly c) Half yearly intervals–verified from borrower’s books of a/c or audited financial statement. d) Not obtained 5. Margin stipulated for a loan under ARTHIAS PLUS is a) 10% b) 15% c) 25% d) 40% 6. Maximum repayment period that can be given under ARTHIAS PLUS is a) 12 months b) 6 months c) 15 months d) 24 months 7. Collateral security requirement for financing under Arthias Plus scheme upto Rs25.00lacs is a. No security is required b. Agricultural Land c. Residential/ commercial property(non agri) worth 1.5 times of the advance. d. Either b or c


348

8. A loan of above Rs.10 lacs to Arthias (against receivables) is classified under ___________segment . a) Agriculture b) SIB c) C&I d) Any segment to suit branch convenience 9. Bank debts / receivables not older than __ months are eligible for finance under "Arthias Plus" a) 3 b) 6 c) 9 d) 12 10Maximum Loan amount under the scheme is Rs--------lacs a)25 b)50 c)15 d)30 11. Loans under the scheme is treated as a )indirect agriculture finance b) direct agriculture finance c)Small business finance d)Commercial advance 12. Crops covered under the National Agricultural Insurance Scheme are a) All Cereals and pulses b) All Fruits and vegetables c) Only notified crops in the country d) None of the above 13. The implementing agency for NAIS is a) United India Insurance Co. Ltd. b) Oriental Insurance Co. c) Agricultural Insurance Company of India Ltd. d) GIC 14. Loan under Produce Marketing Loan scheme is sanctioned ------------------. a) To provide finance to farmers to purchase produces from the market. b) To help farmers to avoid distress selling. c) both a & b d) None of the above


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15. Margin in case of loan sanctioned against goods stored in farmer’s godown is -----% a) 50 b) 40 c) 30 d) 10 16. PML is treated as----- a) Direct finance to agriculture b) Indirect finance to agriculture c) Clean loan d) Group loan 17. The loan amount, can be financed under Produce Marketing Loan scheme is a) 50% of the value of produce, Maximum Rs.5.00 lac b) 60% of the value of produce, Maximum Rs.5.00 lac c) Maximum Rs.5.00 lac, no linkage with value of produce d) 60% to 80% of value of produce, Maximum Rs.10.00 lacs 18. What is maximum repayment period permissible for loan sanctioned under Produce Marketing Loan scheme? a) 6 months b) 12 months c) 18 months d) none of the above 19. Under Produce Marketing Loan scheme, full insurance cover to be obtained, if value of stock exceeds---------------------- a) Rs.10, 000/- b) Rs.15, 000/- c) Rs.25, 000/- d) No insurance required 20. Financing under “Produce Marketing Loan” can be made to a) All non-overdue ACC/KCC Borrower of our branches b) All crop loan Borrowers of other banks c) Non-borrower farmers d) All of the above 21.In case of loan sanctioned against warehouse receipt under Produce Marketing Loan, the collateral security requirement upto Rs 10 lakhs is a.100% of loan amount b. 50% of loan amount c. No collateral security is required d. 200% of loan amount


350

22. PML is helpful in _______________ a) Increasing branch advances b) improving recovery position c) avoiding distress sale by farmer d) all the above 23. Margin against warehouse receipt issued by Central/State Warehousing Corpn is ____% & _____% for repayment period of 6 months and for >6months but within 12 months respectively a) 20 , 30 b) 25 , 35 c) 10 , 15 d) 30 , 40 24. . Maximum Produce Marketing Loan loan under Priority sector is a) Rs. 5 lacs b) Rs. 2 lacs c) Rs. 10 lacs d) Rs. 25 lacs

Answers

ARTHIAS PLUS, CROP INSURANCE & PRODUCE MARKETING LOAN AGR-VIII

1 2 3 4 5 6 7 8 9 10 d b a c d b c c b b 11 12 13 14 15 16 17 18 19 20 a c c b b a d b b d 21 22 23 24 c d a c


351

LAND PURCHASE SCHEME, FINANCING RURAL GODOWN , COLD STORAGE,

SCHEME FOR FINANCING TO PRIVATE COLD STORAGES/WARE HOUSES

AGR - IX 1. Loan under Land Purchase scheme cannot be considered for which of the following purposes a) cost of land b) registration charges and stamp duty. c) purchase of farm equipment. d) building of house. 2.Gestation period allowed under Land purchase scheme if land is to be developed is-----------.years a) 1-2 b) 2-3. c) 3-4 d) 4-5. 3.Minimum margin required for financing under Land Purchase scheme is--------- a) 15% b) 25% c) 30% d) No margin is required 4.Maximum loan amount, which can be financed under Land Purchase scheme is----------- a) Rs. 2.00 lac b) Rs. 5.00 lac c) Rs.10.00 lac d) No limit 5. What is maximum repayment period permissible for loans sanctioned under Land Purchase scheme a) 5-7 years after expiry of gestation period b) 7-8 years after expiry of gestation period c) 9-10 years after expiry of gestation period d) None of the above 6. Loans for purchase of agricultural land can be sanctioned to a) Small and Marginal farmers b) Tenant cultivators, share croppers & landless agricultural labourers c) Both a & b d) None of the above


352

7. “Gramin Bhandaran Yojna” is financing for construction of a) Farm House b) Residential House in rural area c) Rural Godown d) None of the above 8. Normal Margin Requirement under ‘Gramin Bhandaran Yojana’ is a) 10% b) 15% c) 20% d) 25% 9. Margin requirement for projects in NE States & hilly areas and SC/ST beneficiaries under Gramin Bhandaran Yojana is a) 5% b) 10% c) 20% d) 25% 10. Maximum subsidy provided under “Gramin Bhandaran Yojana” for individuals / Companies & Corporates is a) 15 % maximum Rs. 28.12 lacs b) 15% maximum Rs. 25.56 lacs. c) 20% maximum Rs. 22.50 lacs. d) 20% maximum Rs. 25 lacs. 11. Maximum subsidy provided under “Gramin Bhandaran Yojana” for farmers, Agri graduates, Cooperatives, CWC/State warehouse corporation is a) 20% maximum of Rs. 25.56 lacs b) 25% maximum of Rs. 46.87 lacs c) 25% maximum of Rs. 40.50 lacs d) 25% maximum of Rs. 50 lacs 12. Maximum subsidy provided under “Gramin Bhandaran Yojana” for projects in NE states hilly areas above 1000 MSL and for SC/ST individuals and their cooperatives is a) 25% maximum of Rs. 40.26 lacs b) 25% maximum of Rs. 50.56 lacs c) 33.33% maximum of Rs. 40 lacs d) 33.33% maximum of Rs. 62.50 lacs. 13. Subsidy provided to cooperatives for renovation of godowns under “Gramin Bhandaran Yojana” is a) 10% b) 25% c) 30% d) 33.33%


353

14. Subsidy under Gramin Bhandaran Yojana is provided by a) RBI. b) NABARD. c) Minister of rural development d) Ministry of Agriculture 15.What amount of subsidy is released as advance subsidy on sanction of loan by the bank ? a) 25% b) 22% c) 50% d) 33% 16.Subsidy under Capital Investment Subsidy Scheme for construction of Rural Godowns is restricted to the maximum capacity of -------------- a) 1000 tonne b) 5000 tonne c) 10,000 tonne d) No ceiling 17. Maximum repayment period for loans under Gramin Bhandaran Yojana is a. 3 years b. 5 years c. 11 years d. 15 years 18. Maximum repayment period for financing Cold Storages is a.5years b.9 years c.11 years d.15 years 19. The capital investment subsidy (back ended) is released for construction of cold storage by a) APEDA b) Ministry of agriculture & co-operation c) National Horticulture Board d) NABARD 20. Loans to pvt. cold storages/ware houses designed to store agriculture produce irrespective oflocation is treated as a. Direct Agricultural Advance b. Indirect Agricultural Advance c. Advance under C&I segment d. Advance under SSI segment


354

Answers LAND PURCHASE SCHEME, FINANCING RURAL GODOWN , COLD STORAGE,

SCHEME FOR FINANCING TO PRIVATE COLD STORAGES/WARE HOUSES

AGR - IX

1 2 3 4 5 6 7 8 9 10 d a a b c c c d c a 11 12 13 14 15 16 17 18 19 20 b d b b c c c b c b


355

SELF HELF GROUP AGR-X

1. The concept of SHG originated from a) Sri Lanka b) Pakistan c) Bangladesh d) Indonesia 2. The nodal agency for implementation of the concept of SHG in India is a) RBI b) NABARD c) RRBs d) Central Govt 3. Originator of the concept of SHG is a) Prof. Mohammed Yunus b) Prof. Yunus Khan c) Prof. Mohammed d) Prof. Salman Khan 4. SHG can be financed a) 6 months after opening the saving Bank account b) 3 months after formation of group c) 6 months after formation of group d) 12 months after formation of groups 5. In SHG finance, the Inter-se Agreement is executed by a) Bank b) NGO c) President & Secretary of the SHG d) All the members of the SHG 6. VVV stands for a) Village Vikas Vahini b) Volunteer Village Vahini c) Vikas Volunteer Vahini d) None of the above 7. ------is instrumental in high % of recovery in respect of advances to SHGs. a) NABARD b) RBI c) Peer Pressure d) None of the above


356

8. SHGs and Credit linkage means----------------- a) When bank staff forms SHGs. b) When SHG opens a SB account in the bank c) When SHGs are linked to the Bank for financing d) None of the above 9. Who is responsible for repayment of SHG loans? a) The NGO who formed the group b) The leader of the group c) All the members jointly and severally d) None of the above 10. Who decides the rules and regulations for SHG ? a) The facilitator (who forms the group) b) The banker c) The leader of the group d) All the members of the group with their collective wisdom. 11. What is maximum Quantum of finance for financing to SHG ? a) Up to Rs. 50,000/- b) Up to 4 times of the corpus of the group Max. Rs. 50000/- c) Up to 4 times of the corpus of the group d) None of the above 12. Corpus means____________ a) Balance held in Saving Bank account of the SHG b) Total of balances held in cash, Bank accounts & loans to members etc. c) Requirements of all the members of the group. d) None of the above 13. Incentive provided to NGO for credit linking to SHG is a) Rs.500/- b) Rs.750/- c) Rs.250/- d) No incentive is provided 14. Collateral Security is exempted for financing SHG for any industrial activity upto a) Rs.1.00 lacs b)Rs. 5.00 lacs c) Rs.10.00 lacs d) Rs.No collateral is obtained


357

15. SB account and loan account to SHG should be opened in the name of --- ------- a) The leader of the group b) Office bearers of the group c) All the members of the group jointly d) Self Help Group only 16. Six month period for considering bank linkage is reckoned from the date of a) Formation of group b) Opening of SB account c) Commencement of internal lending d) None of the above 17. SHG Bank credit linkage can take the form of a) SHG’s financed directly by banks b)SHG’s financed directly with NGOs facilitation c)Indirect finance to SHGs through NGOs/MFIs d)All of the above 18. What documents are to be obtained for financing to SHG? a) Application, Inter-se agreement, Articles of Agreement, sponsorship letter,arrangement letter b) AB-1, AB-3 or AB-2, Arrangement Letter c) Tripartite agreement between the Bank, SHG and NGO d) None of the above 19. Financing of SHGs is preferred because__________________ a) 100% NABARD refinance is available b) it is priority sector lending c) Branches get remuneration in TPM d) All the above 20. While sanctioning loan to SHG , purpose for which loan is required is decided by a) Branch Manager b) DRDA c) BDO d) Group

Answers SELF HELF GROUP AGR-X

1 2 3 4 5 6 7 8 9 10 c b a c d c c c c d

11 12 13 14 15 16 17 18 19 20 c b b b d a d a d d


358

SELF HELF GROUP (I) AGR-XI

1. Incentives to NGOs for credit linking a SHG is a) 250/- b) 500/- c) 750/- d) 1,000/- 2 An SHG should not consist of more than ----persons a)20 b)10 c)12 d)15 3. Purpose of the loan to SHG can be ___________ a) income generation b) social needs like housing,education etc c) debt swapping d) all the above 4. Ideally what is the minimum and maximum no. of members in an SHG? a) 5-10 b) 10-20 c) 20 -25 d) None of the above *However, the minimum may be reduced to 5 in Hilly Area/Tribal Area/Disabled/Minor Irrigation activity. 5. Six months period for considering Bank Linkage is reckoned from the date of a) Formation of group b) Opening of SB a/c c) Commencement of internal lending d) None of the above 6. To be eligible for direct bank credit linkage which of these conditions is not compulsory a) Group should have been in existence for a period of 6 months b) Proper maintenance of accounts should be there c) The group should have undertaken savings and credit operations through its own resources. d) Village panchayat leaders should be included as office bearers of SHG


359

7. Which of the following is not a criterion for NGO to be eligible for payment of incentive a) Should be registered under Societies act/trust act b) Minimum period of existence should be 3 years. c) It should not be blacklisted d) It should have extended finance to SHG 8. Out of the incentive given to NGO ----% is given on formation of SHG and opening of Saving Bank a/c a) 40 b) 30 c) 50 d) 20 9. Under SHG Gold Card minimum loan that can be given is Rs------- a) 2.00lacs b) 0.50lacs c) 1.50lacs d) 2.50lacs 10. While sanctioning loan to SHG – purpose for which loan is required is decided by a) Branch Manager b) DRDA c) BDO d) Group 11. The important benefits to the members of Group is a) Social empowerment. b) Financial empowerment c) a & b d) None of the above 12. Processing charges for SHG loans are a) nil b) Rs500 per loan c) Rs250 per loan d) Rs1000 per loan 13. NABARD provides refinance upto ----%of loan amount given to SHG . a) 50 b) 100 c) 75 d)60


360

14. Minimum loan amount under SHG credit card is ----------. a) Rs. 20000/- b) Rs. 15000/- c) Rs. 50000/- d) None of these 15. SHG credit card is valid for ------ years (a) 3 (b) 4 (c) 2 (d)5 16. To be eligible for SHG credit card which of the following conditions need not be fulfilled. (a) Should have reached the third level of linkage and have a minimum credit limit of Rs50000/- (b) Should be regular in repayment of earlier loans (c) Minimum 2 members should be literate. (d) Should have adopted at least 2villages 17. Margin in case of SHG credit card is (a) 20% (b) nil (c )10% (d) 5% 18. SHPI stands for a) Self help Group Promoting Institutions b) Self help Group participating individuals c) Safehealth Promoting Institutions d) Safe health participating Institutions 19.Grameen Shakti is an _____________for SHG members. a) insurance product from SBI life ( now discontinued ) b) bank’s loan scheme c) insurance product of New India Assurance co. d) Non of the above


361

20. Outsourcing of recovery in advances through SHG is for a. Govt. sponsored schemes— NPAs b. Govt. sponsored schemes-Both Standard and NPAs c. Bank Regular scheme-Only NPAs d. Both b&c 21. Selection of SHGs for outsourcing of recovery in advances is vested with a. Branch b. Region c. Module d. LHO 22. Which of the following is not correct in respect of Outsourcing of recovery in advances through SHG a. SHGs will be paid a commission of 5% for Standard Assets b. SHGs will be paid a commission of 10% for NPAs c. It will be paid by debit to Charges Account- monthly d. It will be paid by debit to Interest Account- monthly

Answers SELF HELF GROUP (I) AGR-XI

1 2 3 4 5 6 7 8 9 10 c a d b a d d c a d

11 12 13 14 15 16 17 18 19 20 c a b c a d b a a d

21 22

a d


362

GRAM NIWAS AND SAHAYOG NIWAS AGR- XII

1. “Gram Niwas is a scheme for financing for construction / repair/renovation of a a) Farm Pump Shed. b) Residential House / work shed. c) Quarters for Farm Labourers. d) Hotels in rural / semi-urban areas. 2. Eligible category of Borrowers under “Gram Niwas” are a) individuals having satisfactory accounts with us b) Members of SHG having saving / loan account with us c) both the above d) neither of a and b 3. Maximum loan for construction/purchase of new house that can be given to a member under “Gram Niwas” is a) Rs. 50,000 b) Rs. 5 lac c) Rs. 2 lac d) Rs. 2.5 lacs 4. Maximum loan under “Gram Niwas” for repair / renovation / extension of a house and or work space is a) Rs. 0.75 lacs b) Rs. 1 lac c) Rs. 2 lac d) Rs. 1.50 lacs 5. Maximum loan under “Gram Niwas” for purchase of land is a) Rs. 0.30 lacs b) Rs. 1 lac c) Rs. 2 lac d) Rs. 1.50 lacs 6. Margin requirement under “Gram Niwas” upto a loan of Rs. 50,000 is------- of project cost a) Nil b) 5% c) 10% d) 20%


363

7. Margin requirement under “Gram Niwas” for a loan above Rs. 50,000 and upto 5 lacs is------- of project cost a) Nil b) 5% c) 15% d) 20% 8. Margin requirement under “Gram Niwas” for a loan above Rs. 5 lacs is------- of project cost a) Nil b) 5% c) 15% d) 20% 9. Gram niwas scheme is applicable in a) semi urban and urban areas b) Semi-urban areas and rural areas c) all areas d).only rural areas 10. How is loan amount calculated in respect of applicants having average annual income upto Rs 40000 ? a) Maximum permissible Installment to Income Ratio should be 25% b) Maximum permissible Installment to Income Ratio should be 45% c) Maximum permissible Installment to Income Ratio should be 55% d) Maximum permissible Installment to Income Ratio should be 60% 11. How is loan amount calculated in respect of applicants having average annual income above Rs 40000 and upto Rs 2 lac ? a) Maximum permissible Installment to Income Ratio should be 25% b) Maximum permissible Installment to Income Ratio should be 45% c) Maximum permissible Installment to Income Ratio should be 55% d) Maximum permissible Installment to Income Ratio should be 60% 12. How is loan amount calculated in respect of applicants having average annual income above Rs 2 lac upto Rs 5 lacs ? a) Maximum permissible Installment to Income Ratio should be 25% b) Maximum permissible Installment to Income Ratio should be 45% c) Maximum permissible Installment to Income Ratio should be 55% d) Maximum permissible Installment to Income Ratio should be 60% 13. How is loan amount calculated in respect of applicants having average annual income above Rs 5 lac ? a) Maximum permissible Installment to Income Ratio should be 25% b) Maximum permissible Installment to Income Ratio should be 45% c) Maximum permissible Installment to Income Ratio should be 55% d) Maximum permissible Installment to Income Ratio should be 60%


364

14. “Sahayog Niwas” is housing loan scheme given to a) Individual members of SHGs. b) SHGs for onward lending to its members. c) NGOs for lending to SHGs. d) All the above. 15. Loans under “Sahayog Niwas” can be sanctioned for a) Purchase of plot of land & constructing house. b) Construction of house and / or a workspace / shed. c) Repairs / Renovation / Extension of existing house or a workspace. d) All the above 16. Loans under “Sahayog Niwas” can be sanctioned to SHGs functioning in a) Rural areas b) Semi-urban areas c) Urban areas d) Both a & b above 17. Maximum period of repayment under Sahyog Niwas is ------ a) 20. b)15. c) 5. d)10. 18. ‘Sahayog Niwas’ is a housing scheme operational in a) Rural areas b) Semi-urban c) Both Rural and Semi-urban d) None of these 19. SHGs which are in existence for more than __ years with good track record are eligible under Sahyog Niwas. a) 4 b) 2 c) 10 d) None of these 20. Maximum amount that can be sanctioned under Sahyog Niwas.per member of SHG is----. a) Rs. 1.00 lacs b) Rs. 50,000/- c) Rs. 10,000/- d) No ceiling


365

21. Primary security for loan under Sahyof niwas is. a) Land b) Group guarantee of SHG members c) any third pary guarantee d) None of these 22. Under Sahyog Niwas scheme , the loan amount is maximum ----times of corpus fund a) 10 b) 5 c) 15 d) 20 23. Maximum repayment period for loan sanctioned under Gram Niwas is ____ years . a) 15 b) 10 c) 5 d) None of these

Answers

GRAM NIWAS AND SAHAYOG NIWAS AGR- XII

1 2 3 4 5 6 7 8 9 10 b c b c b c c d b a 11 12 13 14 15 16 17 18 19 20 b c d b d d b c b b 21 22 23 b a a


366

SGSY AGR- XIII

1. SGSY launched by GOI from a) 01.04.1999 b) 01.04.2000 c) 01.01.1999 d) None of the above 2. SGSY replaces the earlier poverty alleviation programmes viz. IRDP, DWCRA, GKY, MWS, SITRA and TRYSEM by. a) organizing the rural poor into Self Help Groups b) financing to existing SHGs c) financing individuals d) All of above 3. SGSY is funded by---------------- a) Central Government b) State Government c) Central and State Govt. in the ratio of 75:25 d) None of the above 4. SGSY seeks to promote self employment opportunities to rural poor through promotion of micro-enterprises a) In cluster b) Scattered, based on the intensity of poverty c) Choice of the BM d) None of the above 5. Poor families identified for assistance under SGSY are called: a) Beneficial b) Swarojgaris c) Borrower d) None of the above 6. Objective of SGSY is to bring poor families above poverty line by providing them with income generating assets through a) Bank credit b) Govt. subsidy c) a & b d) None of the above 7. Target group under SGSY consists of a) All BPL families b) All members of BPL families c) All above poverty line families d) None of the above


367

8. Which among the following is not correct in case of financing to SGSY a) Cluster approach under SGSY helps in providing Backward and Forward linkages in a cost effective manner. b) Multiple doses of credit can be provided in deserving cases based on the credit history of swarojgaris. c) Primary responsibility of identifying the key activities in the cluster rests with the Branch Manager d) Primary responsibility of identifying the key activities in the cluster rests with the Block Level SGSY Committee 9. The authority empowered to add or delete any activity in the list of activities under SGSY a) BDO b) Block level SGSY committee c) District level SGSY committee d) None of the above 10. First grading test enables the group eligible for a) Revolving fund (from Govt.) and matching loan from banks. b) Subsidy and loan for economic activity. c) Both d) None of the above 11. Eligibility of groups for First Grading Test (FGT) a) All newly formed groups b) Groups completed minimum period of 6 months c) Groups completed minimum period of 4 months d) None of the above 12. Pre-existing groups who have completed 6 months from the date of formation can be put to FGT a) after 6 months from the date of identification b) straight away without waiting for further period of 6 months c) 3 months from the date of identification d) none of the above 13. The amount of revolving fund is a) Rs. 5,000/- b) equal to group corpus fund subjected to a minimum of Rs. 5,000/- and maximum Rs.10,000/- c) equal to group corpus fund d) none of the above


368

14. Revolving Fund assistance can be made available to group through a) Cash credit a/c b) Term loan c) Demand loan d) none of the above 15., For Revolving Fund Assistance under SGSY, maximum eligible loan for SHG is a) Rs. 15,000/- b) 4 times of corpus fund c) Rs. 10,000/- d) None of the above 16. Purpose of undertaking second grading test is : a) To assess the groups ability to avail R.F. b) To assess, whether the group has completed Micro Credit stage successfully and worth financing Micro – enterprise development stage. c) To assess the groups corpus. d) None of the above. 17. All groups after sanction but before disbursement of loan should undergo: a) Basic Orientation Programme b) Advance Skill Development Programme c) Minimum Skill requirement Programme d) None of the above 18. Under SGSY subtarget for women is a) 60% b) 50% c) 40% d) None of the above 19. Under SGSY for individuals other than SC/ST, subsidy ceilings is a) 40% Maximum Rs. 10,000 b) 50% Maximum Rs. 10,000 c) 30% Maximum Rs. 7,500 d) None of the above 20. Subsidy eligibility for individual swarojgaris who belong to SC / STs a) 50% Maximum Rs. 7,500 b) 60% maximum Rs. 10,000 c) 50% maximum Rs. 10,000 d) None of the above


369

Answers SGSY AGR- XIII

1 2 3 4 5 6 7 8 9 10 a d c a b c a c c a

11 12 13 14 15 16 17 18 19 20 b b b a b b a c c c


370

SGSY (i) AGR- XIV

1. Loan application under SGSY ordinarily should be disposed off with in a period of ----days and not later than ----- a) One week, 1 month b) 10 days, 2months c) 15 days, 1 month d) None of the above 2.Maximum subsidy for swarojgaris under irrigation projects. a) Rs1.00lac b) Rs1.5lac c) No ceiling d) Rs2.5lac 3. The unit cost as fixed by ------------------- should be taken into consideration as indicative cost while fixing the unit cost for the farm sector when identifying key activities for assistance of poor families. a) regional Committee of NABARD b) regional Committee of RBI c) Distt Committee of DRDO d)Distt Committee of SGSY 4. Disbursements under SIB sector may be disbursed in cash upto a) Rs. 20,000 b) Rs. 10,000 c) Rs. 30,000 d) None of the above 5. In case of loans for individuals upto Rs. 50,000/- and to group upto Rs5.00lacsecurity to be obtained wherever movable assets are created are --------. a) Only hypothecation of assets created Out of Bank’s finance b) Mortgage of landed property. c) a & b d) None of the above 6. Security norms for loans to individuals exceeding Rs. 50,000/- and to groups ecxceeding Rs5.00lacs are a) Hypothecation of assets created out of Bank finance. b) Collateral in the form of marketable security, title deed . c) a & b d) None of the above


371

7. Interest charged by the bank on subsidy amount is a) nil b)1.00% c)1.5% d)2.5% 8.Subsidy under SGSY is provided a) 50%in advance. b) 25% in advance c) totally back ended d) 15% in advance 9. For administration of subsidy DRDA will open ------account with principal participating bank branches. a) saving b) fixed deposit c) current d) none of the above 10. Risk fund can be created out of ---% of SGSY funds at district level a) 2 b) 1 c) 5 d) 3 11. What is the minimum lock in period for subsidy. a) 10 years b) 5 years c) 3 years d) none of the above 12. Minimum repayment period for loan under SGSY are a) 3 years b) 5 years c) 10 years d) none of the above 13. Repayment instalments should not be more than ----% of the incremental net income expected from the project a) 40 b) 60 c) 50 d) 30


372

14. For a loan under SGSY scheme with repayment period of 7 years, lock in period for subsidy adjustment is --------years. a) 3 years b) 4 years c) 5 years d) None of the above 15. For a loan under SGSY scheme with repayment period of 5 years, lock in period for subsidy adjustment is --------years. a)5 years b) 4 years c) 3years d) 6years 16. Maximum age of Swarozgari for availing group insurance should be------- at the time of sanction of loan. a) 55 b)45 c) 60 d) 65 17. Group Life Insurance Scheme for SGSY beneficiaries is in operation: a) till the repayment of loan b) For a period of 5 years from the date of commencement of coverage. c) a or b which ever is earlier. d) a or b which ever is later. 18. Banks may provide consumption loans to individual Swarojgaris not exceeding a) Rs. 5,000/- b) Rs. 10,000/- c) Rs. 2,000/- d) None of the above

Answers

SGSY (i) AGR- XIV

1 2 3 4 5 6 7 8 9 10 c c c b a c a c a b

11 12 13 14 15 16 17 18 c b c b c c c c


373

AGRI GOLD LOAN

AGR- XV Q1. Why our Bank intends to grant loans under Agl. Gold Loans scheme? a) is one of the ways of extending financial assistance to farmers for meeting their agricultural expenses b) most secure loan as per Bank’s experience c) NPA is almost nil / negligible d) all above Q2. What is the objective of granting Agr. Gold Loans? a) To extend hassle free finance to farmers / agriculturists b) increase their liquidity to meet crop production expenses, c) increase their liquidity to meet investment expenses related to agriculture and / or allied agricultural activities. d) all above Q3. Which among the following is not correct regarding sanction of Agri Gold loans a) against Gold ornaments b) Gold bars/coins (Bullion) c) All farmers are eligible for Agri-Gold loan d) Repayment of Gold loan sanctioned should coincide with harvesting and marketing season Q4. Agri Gold loan is sanctioned as a) Demand Loan b) Term loan c) Cash Credit d) Any of the above Q5. Which among the following is correct regarding sanction of Agri Gold loans a)Agri Gold loans’ can be sanctioned to illiterate borrowers. b)Gold loans can be sanctioned for investment purpose c)Ornaments pledged should be in joint custody. d) All of above Q6. Value of gold is declared by____ a) CFO every fortnight b) CCFO every month c) CCO in every quarter d) Circle Managament


374

Q.7 Maximum loan amount that can be sanctioned under Agri Gold Loan is a. Rs 3.00 lacs b. Rs 10. 00 lacs c. Should not be more higher than the advance value of the Gold/ Silver ornaments pledged d. 5 times of Annual Farm Income Q.8 Repayment period stipulated for Agri Gold Loan sanctioned for crop production is a.6 Months b. generally not to exceed 12 Months c.18 Months d.30 Months Q.9 Repayment period stipulated for Agri Gold Loan sanctioned for other than production credit is a.6 Months b.12 Months c.18 Months d.36 Months Q.10 Method prescribed by Bank for testing the purity of gold while sanctioning gold loan is a. Touch Stone method b. Nitric Acid Test c. Specific Gravity Method d. Any one of the above Methods Q.11 Loans under Agricultural gold loans are reckoned as------ a. Direct finance to agriculture b. Indirect finance to agriculture c. As per the activity d. Unsecured loans Q12 Value of gold is declared for ____ carat purity a) 18 b) 22 c) 24 d) 18/22/24 Q13. Who is responsible for ensuring genuineness and purity of gold ornaments ? a) Branch manager b) Cash officer/ Award Cash officer c) Accountant d) Any one


375

Q14 Who has to certify the gross and net weight of gold ornaments ? a) Cash officer/ Award Cash officer b) Branch Manager c) Accountant d) Any one Q15What is the minimum margin required under Agriculture Gold loan ? a) 25% b) 20% c) 30% d) No margins needed Q16 Who is the custodian of Gold Ornaments pledged ? a) Cash officer/ Award Cash officer b) Branch Manager c) Accountant d) Branch Manager/Accountant and Cash officer/ Award Cash officer Q17 On repayment of the loan, what steps needs to be taken? a) Ornaments held as security to be returned b) DP Note duly discharged should be returned to the borrower(s) c) Acknowledgement for receipt of ornaments obtained in the Gold Loan Ledger d) All the above Q18 Whether part delivery of Ornaments is permitted? a) No b) Yes, on written request of the borrowers against part payment c) Advance value of the ornaments still in bank’s possession fully cover the outstanding in the account d) Both b and c Q19 What are the instructions regarding delivery to the third party? a) Yes, can be done freely b) Yes, only in exceptional circumstances and on undoubted authority of the borrower c) Yes, only in exceptional circumstances and on undoubted authority of the borrower alonwith letter of authority/undertaking by the borrower absolving the bank from responsibility in the event of any dispute. d) No, it is not permitted Q 20 Whether advances under Agriculture Gold Loan be called up? a) No b) Yes, when the value of the gold is less than the outstandings c) Yes, when the account becomes NPA d) Both b and c


376

Q 21 Who is the sanctioning authority of Agr. Gold Loan? a) Cash Officer b) Award Cash Officer c) Branch Manager/ Accountant d) Any one of above

Answers AGRI GOLD LOAN AGR- XV

1 2 3 4 5 6 7 8 9 10 D d b d d d c b d d 11 12 13 14 15 16 17 18 19 A d b a a D d d C 20 21 D c


377

GENERAL CREDIT CARD (GCC), SHG CREDIT CARD AND SHG GOLD CARD, KRISHAK UTHAAN YOJNA

AGR- XVI

1. General Credit Card can be issued by a) Rural Branch b) Rural and Semi Urban Branch c). Rural, Semi Urban and Urban Branch d). Rural, Semi Urban ,Urban and Metro Branch 2. Which among the following is correct in respect of General Credit Card a) To provide hassle-free credit to our customers b) Credit to our customers is based on the assessment of cash flow c) There is no collateral security, purpose or end-use of the credit d) All of the above 3. General Credit Card can be issued to a) Existing customers with branch/ having satisfactorily conducted deposit accounts. b) Customers with loan accounts which are classified as standard assets in our books . c) Both a & b d) All existing customers . 4. Which among the following is not correct in respect of General Credit Card a)The Scheme will be in the nature of revolving credit b)No plastic / electronic card will be issued under the scheme, but in place of a card, a special passbook will be issued to the borrower c)Quantum of the limit will be based on the assessment of income and cash flow of the entire household d)loan limit is Rs.50,000/- . 5. Which among the following is not correct in respect of General Credit Card a). In case of persons cultivating land total credit facility under GCC for an individual shall not exceed 20% of the eligible production loan limit . b). In case of other persons 20% of annual income of the applicant from known sources. c). Maximum loan amount is Rs.25,000/-. d). Penal interest at 1% p.a. be charged to borrowers who default in repaying the loan


378

6. General Credit Card is renewed after a). Three years with half yearly review b) Three years with annual review c ) Five years with half yearly review d) Five years with annual review 7. Which among the following is not correct in respect of General Credit Card

a) In case the entire amount is not repaid, a minimum of 20 % of the amount due along with upto date interest debited should at least be repaid

b) Enhanced rate of interest @ 2% p.a. be charged to borrower who default in repaying the loan. c) Fifty percent of credit outstanding under GCC up to Rs.25,000/- per account will be treated as indirect agricultural financing.

d) It is a secured advance . 8.To be eligible for ‘SHG credit card and SHG gold card’, the SHG should

a) develop proper group dynamics and repayment in earlier accounts should be regular. b) reached third level of credit linkage and enjoying a credit limit of Rs.50,000/- c) at least 2 of the group members should be literate to operate the account

d) All of the above 9.Minimum credit limit under SHG Credit Card is a) Rs.50,000/- b) Rs.1,00,000/- c) Rs.2,00,000/- d) Rs.5,00,000/- 10.Minimum credit limit under SHG Gold Card is a. Rs.1,00,000/- b. Rs.2,00,000/- c. Rs.5,00,000/- d. Rs.10,00,000/- 11.Which of the following is incorrect? a. SHG Credit Card will be in the nature of revolving Cash Credit b. SHG Gold Card will be in the nature of Term Loan c. The cards are valid for 3 years d. Consumption credit is not available under the schemes.


379

12. Krishak Uthaan Yojna is aimed at providing short term production and consumption credit to ------------ a. Oral tenants/ lessees and small farmers b. Tenant farmers c. Sharecroppers with recorded tenancy rights d. all the above 13. Under Krishak Uthaan Yojna what is the criteria for residential proof? a) should have a permanent residential proof & have been residing at the place for at least past 2 years b) should have a permanent residential proof & have been residing at the place for at least past 12 months c) should have a permanent residential proof & have been residing at the place for the past 18 months d) No such proof is needed 14. What is the upper limit for loan under Krishak Uthaan Yojna? a).Rs 15000/- b) Rs 25000/- c) Rs 20000/- d ) No such upper limit 15. What type of loan facility is given under Krishak Uthaan Yojna? a) Demand loan b) Overdraft c) Term Loan d) Revolving Cash Credit 16. How do we calculate limit under Krishak Uthaan Yojna? a) Land area cultivated and scale of finance applicable . b) Land area cultivated and scale of finance applicable inclusive of consumption needs which is capped at 20% of production limit . c) a plus another 20% of the production limit would be added for purpose of immediate needs of borrowers after harvest of the crop d) Flat Rs. 25000/- irrespective of land area 17. What are the margins under Krishak Uthaan Yojna? a) 5% b) 10% c) 15% d) Nil 18 What is the security taken under Krishak Uthaan Yojna? a) Hypothecation of crops b) Third party guarantee c) Mortgage of property d) Clean loan


380

19 Whether prudential norms are applicable to accounts under this scheme? a) Yes, same as applicable to crop loans b) No, not applicable 20 How to verify the identity of the borrower? a) Documents related to house of the applicant b) Voter’s list/ Identity Card c) Any other document prescribed by the LHO d) Any one of the above

Answers GENERAL CREDIT CARD (GCC), SHG CREDIT CARD AND SHG GOLD CARD,

KRISHAK UTHAAN YOJNA AGR- XVI

1 2 3 4 5 6 7 8 9 10 b d c d d b d d a b 11 12 13 14 15 16 17 18 19 20 d d a b d c d d a d


381

BUSINESS CORRESPONDENTS AND BUSINESS FACILITATORS AGR- XVII

1. What is Financial Inclusion? a) Mobilising deposits from rural areas b) Providing loan facilities to rural people c) Extending hassle free savings and loan facilities and other banking services at an affordable cost, to the underprivileged and unbanked population d) All above 2. What is the approximate number of Business Correspondents/ Business Facilitators that our bank is going to create? a) 10,000-12,000 b) 15,000- 20,000 c) 5,000- 7,500 d) 1,000- 2,500 3. At the corporate centre level, the bank has tied up with which of the following to work as our business correspondent? a) India Post b) Drishtee Foundation c) ZERO Microfinance And Savings Support Foundation (Zeromass) d) all above 4. At the corporate centre level, the bank has tied up with which of the following to work as our business facilitator? a) India Post b) Tata c) ITC d) all above 5. Where can Alliances for BC/BF can be struck? a) At the Corporate Centre level b) At circle level c) At module/Regional level d) Both a b& c 6. Corporates like ITC or Reliance, with their internet enabled rural outlets like e-choupals/procurement centres, qualify for working as our ------- a) BFs b) BCs. c) Both a. & b. d) Neither a. nor b.


382

7. What percentage of assets of the Rural and Semi urban branches is expected to be brought in by BFs and BCs? a) 15% b) 25% c) 30% d) 35% 8. Which type of entities could be ideal alliance partners? a) India Post due to their out reach and sheer numbers b) NGOs based on their coverage c) Section 25 (i.e. Not for profit) companies, such as Zeromass. d) all above 9. What would be the products which would be prescribed for alliances? a) Assets b) Liabilities c) Both assets and liabilities d) There is no fixed list of products. 10. For availing the services of BC/BF a) Their police verification is necessary b) Only references are necessary c) None of the above 11. In case of Zero Mass Alliance, what is the type of arrangement and where all extended? a) This is a Business Correspondent arrangement and currently on at 61 Customer Service Points (CSP) spread over Mizoram, Uttarakhand, Andhra Pradesh and Uttar Pradesh b) This is a Business Facilitator arrangement and currently on at 100 Customer Service Points (CSP) spread over Nothern states c) This is a Business Correspondent arrangement and currently on at all India level d) None of the above 12. What are the main objectives of the alliances? a) Increasing the outreach. b) Greater financial inclusion. c) Ride on the technology which we have pioneered and multiply our customer base many times. d) all above


383

13. Can these alliance partners source large value deposits/loans? a) Yes, with the permission of RBI b) Bulk deposits and very large loans will not be sourced by these entities c) No such restriction d) Instructions are not clear 14. In which segments can the alliance partners source business? a) Agri. b) Per c) SME d) Retail business in all the segments 15. Who will train the operators at the BC/BF customer service points (CSP)outlets? a) BCs to develop their own training arrangements b) Since work is simple no training needed c) Before the launch of the arrangement under pilot, the corporate entre arranges these with the support from the Asst. Gen. Manager for the Region, the Local Head Office, SBLCs, SBIRD. d) SBIRD 16. What kind of training is imparted to these operators? a) About products only b) About handling of machines c) About KYC norms d) The training will cover all the CSP personnel in different products, KYC guidelines, the supporting documents required, POS machine operations and key areas to check for while sourcing business from a customer. 17. What is the procedure for handling deposit account opening forms and loan proposals by BC/BF’s CSPs a) Kept by BC/BF b) Sent to Channel Manager/CMA c) The CSPs will send all forms directly to the Link Branch. d) None of the above 18. Will the Channel Mgr / CMA need to visit the CPC to follow up proposals submitted by the CSPs? a) Not as a matter of course. b) However, looking to the role being akin to that of a Regional Manager as far as the BC/BF outlets are concerned, the Chl. Mgr/CMA is needed to ensure that loan applications are disposed of without delay and the BC/BFs are kept happy and in good humour. c) Just like a Regional Manager, a Channel Mgr has to work to drive business and also control. d) All of the above


384

19. Can the Channel Mgr/CMA visit a customer jointly with the outlets of these alliance partners? a) No b) Yes c) In this process we need, through the mechanism of Chl. Mgr, to put in more than the required/commensurate efforts by way of sensitization, handholding support, making available other enablers like stationery, publicity initially. d) b. & c. 20. Who else should visit the outlets of the alliance partners whether they are BCs or BFs? a) Staff of Link branch b) BM of Link branch c) The AGM & the CM (Rural) of the Region d) all above 21. What is the difference between a BC and BF? a) Difference in areas of operation. b) A Bf does not deal with loans of Link branch c) A BF will only source applications for deposits / loans / cross selling. A BC in addition to the activities of the BF will also carry out small value transactions. d) None of the above 22. How will the branch / CPC know that an application has been sourced by a BC/BF? a) The BC/BF will brand a rubber stamp with their name on the application sourced b) The rubber stamp will also include the code no of the BF/BC c) the Branch will enter the BC/BF code in the Core Banking Menu. d) All of the above 23. Who will verify the correctness of the commission paid to BF/BC? a) The desk officer . b) The accountant /Manager (Branch Operations) c) The Branch manager d) The Channel Manager / Channel Management Advisor will verify the correctness of the commission and recommend to the Branch Manager / AGM for payment.


385

Answers BUSINESS CORRESPONDENTS AND BUSINESS FACILITATORS

AGR- XVII

1 2 3 4 5 6 7 8 9 10 c a d c d a b d d a

11 12 13 14 15 16 17 18 19 20 a d c d c d c d d d

21 22 23 c d d


386

( SBI TINY)

Q 1) What is the eligible loan amount in SBI Tiny SB cum- OD Account ?

a) Equal to 4 times monthly average balance ( 15th day of month) for preceding 6 months or equal to 4 months net income assessed by link branch official, whichever is higher

b) Equal to 6 times monthly average balance ( 15th day of month) for preceding 6 months or equal to 6 months net income assessed by link branch official, whichever is higher

c) Equal to 3 times monthly average balance ( 15th day of month) for preceding 6 months or equal to 3 months net income assessed by link branch official, whichever is higher

d) None of these Q 2) What is the min. and max. loan amount under SBI Tiny SB cum- OD Account ?

a) Rs. 5,000/- and Rs. 25,000/- b) Rs. 1000/- and Rs. 25,000/- c) Rs. 2000/- and Rs. 25,000/- d) None of these

Q 3) What is period of repayment under SBI Tiny SB cum- OD Account ?

a) Max. in 12 equated monthly instalments b) Max. in 24 equated monthly instalments c) Max. in 36 equated monthly instalments d) None of these

Q 4) What is the rate of intt. applicable to SBI Tiny SB cum- OD Account ?

a) Interst rate is equal to 2% above SBAR p.a. with monthly rests b) Interst rate is equal to 1% above SBAR p.a. with monthly rests c) Interst rate is equal to SBAR p.a. with monthly rests. d) None of these

Q 5) What is not true about SBI Tiny SB cum- OD Account ?

a) Loan will be sanctioned to customers who have not availed KCC limit from any branch

b) A running overdraft account c) Auto-reduction of Drawing Power every month d) Loan to be sanctioned to individual customers holding SBI Tiny card for last three

months KEY

1 2 3 4 5 A B B A d


387

Cash Department

1. Entries in Vault Register are to be made by:

a) Cash Officer b) Joint Custodian of Cash other than Cash Officer c) Deputy Head Cashier d) Any Cashier

2. Currency Transfer debit means------------.

a) Amount debited to RBI on account of remittance b) Amount debited to LHO on account of remittance c) Amount deposited into the chest is more than the amount withdrawn d) Amount withdrawn from the chest is more than the amount deposited

3. SWO preparing the note packets remains responsible for both the quality and quantity of the notes in the packets prepared by him for denominations of Rs.1/- to Rs. ------------------:

a) 10 b) 50 c) 100 d) 500

4. After the note packets of Rs.500/- & Rs.1000/- are recounted and signed by the

Cash Officer, the SWO who prepared the note packets would be responsible for ---------of notes in the packet,

a) Quality only b) Quantity only c) Both, Quality & Quantity d) None of the above

5. Security thread is found in all genuine notes of:

a) All denominations b) Rs. 2/- and above c) Rs. 5/-and above d) Rs.10/-and above

6. The Cash officer’s hand balance is verified by the Accountant/Joint Custodian completely at which of the following intervals------

a) Daily b) Not Verified c) Every Friday d) Weekly

7. Currency Transfer should be advised to:-

a) Currency Officer b) Treasury Officer c) Link Branch d) None of the above


388

8. Transactions in the Currency Chest should always be in multiples of:

a) Rs. 500/- with a minimum of Rs. 1000/- b) Rs 5000/- with a minimum of Rs. 10000/- c) Rs.50,000/- with a minimum of Rs. 1,00,000/- d) None of the above

9. While paying an instrument the paying cashier/SWO cancels the signature of:

a) Drawer of the instrument b) Passing Officer c) Payee/person receiving payment d) None of the above

10. In whose custody, Transit Voucher books are retained overnight? a) Branch Manager b) Joint Custodian of cash c) Respective Passing Officials d) Accountant 11. How many Guards, other than the person accompanying the cash, will escort the

remittance of Rs. 85. 00 lacs.

a) One armed Guard b) Two armed Guards c) It will be accompanied by Police Escort d) No escort is required

12. The vault register must always remain in the:

a) Branch Manager Custody b) Cash Officers Custody c) Branch Strong Room d) None of the above

13. RBI has prohibited stapling of currency notes by a directive issued under:

a) Section 35A of Banking Regulation Act b) Section 35A of RBI Act c) Section 35A of NI Act d) Section 35A of Indian Currency Act

14. Bills for reimbursement of expenditure incurred on chest remittances are to be lodged with

a) RBI through FSLO b) RBI directly c) GAD Mumbai d) No reimbursement is claimed


389

15. Small Coin Depot comprises of coins of: ------

a) 50 paise and less b) up to Rs 2/- c) Rs1/- and less d) up to Rs 5/-

16. In the event of wrong/delayed reporting of currency chest figures, Bank has to pay penalty @ ------

a) Saving Bank Interest rate b) Bank Rate plus 2% c) Applicable rate for time deposits d) Bank Rate

17. Inter-loaning of cash among Cashiers/Cash officer is recorded in __________.

a) Vault Register b) Currency Chest Book c) Cash Receipt/Delivery Book d) On Plain paper.

18. The numerals are printed in Optically Variable Ink on the currency notes in the denomination of:

a) Rs. 1,000/-only b) Rs. 50/- and Rs.100/- c) Rs. 100/- to Rs.1000/- d) Rs. 500/- & Rs.1000/-

19. Who decides on the quantity of coins to be minted?

a) RBI b) Govt. of India c) Ministry of Finance d) Ministry of Commerce

20. A remittance from one Currency Chest to a Currency Chest of another bank is affected-----------

a) By debit to Link branch b) By debit to Reserve Bank of India c) No entry need be passed d) None of these.

21. When excess cash is found at the end of the day, it is to be-----------

a) Paid to the concerned cashier b) credited to Sundry Deposit account c) credited to charges account d) None of these.

22. Which branches are to be covered under revised procedure?

a) All Hand balance CBS branches b) All Currency chest branches c) All CBS branches d) All branches


390

23. What are the major benefits that will accrue to the branches after introduction of redesigned in house cash handling process?

a) There will be no delay in starting customer transactions at the beginning of the day b) The process will reduce the time spent by the Cash Officer/Cashier-in- Charge in handing over and receiving cash at the beginning/close of day.

c) The process will reduce the time spent by the SWO/ Assistant (Cash) in handing over and receiving cash at the beginning/close of day. d) all the above

24. What is the overnight retention limit permitted to the SWO/Asstt. Cash ?

a) Rs. 25,000 b) Rs.50,000

c) Rs 1 lac d) Rs 75,000 25. What kind of cash box is provided to the SWO/Asstt. Cash for overnight cash

retention? a) Box b) Aluminum box size14 inch x 11 inch x 4 inches c) VIP bag is provided d) any kind of arrangement can be made

26. Who is the custodian of cash box overnight and what are their responsibilities?

a) joint custody of CO/CIC and ager b) CO/CIC

c) Accountant/Service Man d) Cash Box shall remain overnight in joint custody of CO/CIC and Accountant/Service Manager, the cash in the drawer shall continue to remain in the single custody of SWO/ Assistant(Cash) as the key of Cash Box shall remain with the SWO/ Assistant(Cash).

27. What is the cash verification (SWO/Asstt. Cash) system available under the new

procedure? a) Not required b) verified once in a month c) system generate a random list of Cash Boxes required to be verified daily either

at the beginning/end of the day d) system shall generate a random list of Cash Boxes required to be verified daily either at the beginning/end of the day in such a way so as to ensure verification of cash of all SWOs/Cashiers at least once every week


391

Key to Assignment –(Cash Department)

Q. 1 2 3 4 5 6 7 8 9 10

Ans. b c c a c d c c a c

Q. 11 12 13 14 15 16 17 18 19 20

Ans. b c a a a b c d b c

Q. 21 22 23 24 25 26 27

Ans. b a d c b d d


392

PPF SCHEME

1 How many accounts an individual can, open in name of his/her minor children, in addition to his/her own PPF account?

a) 1 b) 2 c) 3 d) One each in the name of minor child

2 Minimum amount required to be deposited in a PPF account during a year is

Rs. _____

a) 50 b) 100 c) 500 d) 1000

3 What is the maximum amount that can be deposited in a PPF account during

a year?

a) Rs. 60000 b) Rs. 70000 c) Rs. 80000 d) Rs. 100000

4 How many number of deposits in a PPF account can be made in a year?

a) 10 b) 12 c) 14 d) 15

5 How many withdrawals in a PPF account can be made in a year?

a) 1 b) 2 c) 3 d) 5

6 An irregular PPF account due to non deposit of minimum Rs. 500/- in a year,

can be regularized by paying a penalty fee of Rs. ____per year for each year of default with cumulative effect

a) 10 b) 20 c) 30 d) 50

7 Interest on PPF account is paid on the minimum balance standing to the credit of the account holder from ____of the month to last day of the month

a) 1st b) 5th

c) 7th d) 10th


393

8 The balance in PPF account of Mr. S.K. Sharma with State Bank of India, Panchkula is Rs. 1,00,000 as on 01-04-2009. Mr. Sharma deposited a cheque for Rs. 30,000 on 05-04-2009 drawn on ICICI Bank, Panchkula which was paid in clearing on 07-04-2009. Mr. Sharma will get interest for the month of April 2009 on Rs. _____

a) 1,30,000 b) 1,00,000 c) 1,15,000 d) None of above

9 A depositor of PPF account can nominate ____persons

a) One b) Two c) Three d) No limit

10 For how many years, a PPF account can further be extended at a time?

a) 5 b) 10 c) 15 d) 20

11 For how many times, a PPF account can be extended after the completion of

maturity for a further block of 5 years?

a) 1 b) 2 c) 3 d) No Limit

12 If a minor attains the majority before the expiry of the term for which PPF

account was opened, who will operate the account?

a) Natural Guardian b) Ex-Minor (Now Major) c) Court appointee d) Trust

13 A PPF account of an alive person cannot be closed before expiry of

_____years after the year in which initial deposit was made


14 A request for pre-mature closure of a PPF account after completion of 5 year

from the year in which the initial deposit was made, will be forwarded to

a) AGM b) DGM c) Deputy Commissioner d) Ministry of Finance, GOI


394

15 In case of death of an account holder of PPF, where there is no nomination, payment up to which amount can be made to the legal heirs without obtaining succession certification

a) Rs. 50000 b) Rs. 100000 c) Rs. 200000 d) No limit

16 First withdrawal in a PPF account can be made after the expiry of ____years

from the end of the year in which the initial subscription was made

a) 4 b) 5 c) 6 d) 7

17 The amount of withdrawal of PPF will be limited to 50% of the balance at the credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the ____year, whichever is lower

a) Ist b) 2nd c) 3rd d) preceding

18 If the PPF account is continued after maturity for a further block of 5 years,

how many withdrawals in a year are allowed?

a) 1 b) 2 c) 3 d) 5

19 In case of extended PPF accounts, withdrawal shall not exceed ___% of the

balance lying in the account at the time of maturity (prior to extended period)

a) 50 b) 60 c) 70 d) 80

20 First loan in a PPF account can be granted in the _____financial year from

the financial year in which the account was opened a) 1st b) 2nd c) 3rd d) 5th

21 What is the limit fixed for subscribing in a PPF account where default along with penalty is required to be deposited ?

a) Should not exceed 70000/- b) 70000/- plus penalty c) 70000/- plus default and penalty d) 70000/- plus default

22 Which of the following can open account under PPF scheme? a) NRI b) HUF c) Individuals d) a &c above


395

KEY TO ASSIGNMENT

PPF SCHEME

1 d 2 c 3 b 4 b 5 a 6 d 7 b 8 a 9 d 10 a 11 d 12 b 13 a 14 d 15 b 16 b 17 d 18 a 19 b 20 c 21 a 22 c


396

PPF SCHEME -II

1 What is the present rate of interest payable on PPF deposits?

a) 7% p.a. b) 8% p.a. c) 9% p.a. d) 10% p.a.

2 When interest is applied to PPF accounts?

a) 31st December b) 31st March c) 30th June d) 30th September

3 No loan on PPF account can be granted after the expiry of ____years from

the end of the year in which the initial subscription was made

a) Three b) Four c) Five d) Six

4 The amount of loan against PPF deposit will be restricted to ____% of the

amount credit at the end of 2nd year immediately preceding the year in which the loan is being granted

a) 25 b) 50 c) 60 d) 75

5 How many times, loan can be granted against PPF deposit in a year?

a) Once b) Twice c) Thrice d) No limit

6 Loan granted against PPF deposit, will be repaid within a maximum of

____monthly installments

a) 12 b) 24 c) 36 d) 48

7 After the principal amount of PPF loan is fully repaid, the subscriber shall pay

interest @ 1% p.a. in _____monthly installments

a) 1 b) 2 c) 3 d) 5


397

8 If principal is not repaid within 36 monthly installments, interest shall be

charged @ _____p.a.

a) 2 b) 4 c) 6 d) 8

9 PPF account can be opened in ____names

a) Individual b) Joint with spouse c) Both (a) & (b) d) None of above

10 Mr. Anil Pant has deposited Rs. 80,000/- in his PPF account on 30-03-2009.

How this case will be dealt with?

a) Rs. 10,000 will be returned back to Mr. Pant immediately and no interest on Rs. 10,000 will be paid

b) Rs. 10,000 will be returned back to Mr. Pant immediately but interest on Rs. 10,000 will be paid

c) Interest on full amount of Rs. 80,000/ will be paid d) None of above

11 Ms. Pooja Arora is maintaining a PPF account. Now she is married and her

surname has been changed to Mutreja. How we shall deal with this situation?

a) Account will be continued as it is, no need for any change b) Her surname will be changed in the records after taking documentary

evidence of her marriage and she will operate her account accordingly c) Joint account will be opened with her husband d) None of above

12 Which amongst the followings cannot open new PPF accounts as per the

extant instructions?

a) HUF b) NRI c) Individuals d) Both a & b

13 Govt. of India has instructed all the authorized branches dealing with PPF business to pay commission to agents of PPF at source w.e.f. _____

a) 01-04-2004 b) 01-05-2004 c) 01-06-2004 d) 01-07-2004


398

14 PPF commission to agents will be paid @ ___% of amount deposited

a) 1 b) 2 c) 3 d) 5

15 Branches paying PPF commission to agents have to deduct _____from the amount of commission

a) TDS b) Service Tax c) Sales Tax d) Both (a) & (b)

16 PPF Commission will not be paid on the amount pertaining to ______

a) Loan including interest on loan b) Revival Fee c) Both (a) & (b) d) None of above

17 PPF commission to agents will be paid through ______

a) Cash b) Account payee banker cheque c) Credit to his/her account d) either (b) or (c)

KEY TO ASSIGNMENT PPF SCHEME -II

1 b 2 b 3 c 4 a 5 a 6 c 7 b 8 c 9 a 10 a 11 b 12 d 13 c 14 a 15 d 16 c 17 d


399

GOVERNMENT BUSINESS -I

1 A govt. bill passed by Treasury Officer is valid for _____days including the date of passing

a) 7 b) 10 c) 15 d) 30

2 A govt. bill passed by Treasury Officer on 29-03-2009 is valid up to _______

a) 07-04-09 b) 08-04-09 c) 10-04-09 d) 31-03-09

3 Daily reporting of State Govt. Transactions by fastest mode is made by the

branches through SGLO – I to ________

a) FSLO (LHO) b) ZO c) GAD, Mumbai d) RBI

4 Daily summary along with related vouchers and scrolls are sent to Treasury Office by _______

a) Messenger book b) TO Pass Book c) Regd. Post d) Courier

5 At the end of month, summary of govt. transactions is sent to Treasury Office

on ________format for verification

a) DMS b) VDMS c) SGLO I d) SGLO II

6 ____is a statement sent by Treasury Office to the branch after due verification

a) DMS b) VDMS c) SGLO I d) SGLO II

7 Income Tax Refund Orders (ITRO)/ Cheques are valid for _____month from

the date of issue

a) One b) Two c) Three d) Six

8 Paying branch should obtain ___________by the payee on Income Tax

Refund Order (ITRO)

a) Discharge on revenue stamp b) Simple discharge c) No need for any discharge d) None of above


400

9 Paying Branch should obtain ______from the payee on Income Tax Refund

Cheque

a) Discharge on revenue stamp b) Simple discharge c) No need for any discharge d) None of above

10 Advices of Income Tax Refund Orders (ITROs)/Cheques exceeding Rs. ______are sent by Income Tax Office to the paying branches

a) 99 b) 999 c) 9999 d) 99999

11 The present rate of commission on handling govt. business by the branches

is Rs. _____ per Receipt a) 20 b) 25

c) 50 d) 45 12 The present rate of commission on handling govt. business by the branches

is Rs. _____ per pension payment a) 45 b) 60

c) 50 d) 100

13 The present rate of commission on handling govt. business by the branches is Rs. _____ per payment (other than pension) a) 60 b) 25

c) none of above d) 45

14 Focal Point branch transfers ____% of commission to receiving branches who have handled govt. business

a) 25 b) 50 c) 75 d) 100

15 Under Reserve Bank of India Remittance Facility Scheme (RBIRFS), the

branches will be faxing the schedule (RBR-11) and paid instruments to GAD Belapur, if the amount of draft paid is Rs. ____lac or more on a single day a) 25 b) 50 c) 75 d) 100

16 On Line Tax Accounting System (OLTAS) has come into effect from _______

a) June 2004 b) July 2004 c) August 2004 d) September 2004


401

17 How many number of forms for depositing the tax have been introduced under OLTAS?

a) 1 b) 2 c) 3 d) 4

18 Which forms amongst the followings, have been introduced for depositing the

tax under OLTAS?

a) 100, 200,300 b) 200,300,400 c) 180,181,182 d) 280,281,282

19 How many copies of relative challan, a depositor has to submit for depositing

the tax under OLTAS?

a) One b) Two c) Three d) Four

20 Which amongst the following type of challan forms for depositing the tax by the depositor under OLTAS, will not be accepted by the bank?

a) B/W Xerox copy b) Downloaded from internet c) Old challan forms d) None of above

21 Which type of acknowledgement will be given by the bank to a person who is

depositing tax under OLTAS with an instrument drawn on another bank locally

a) Receipt will be issued as in the other case b) Receipt will be issued with “Subject to instrument being paid” stamp c) Paper Token to be issued d) No receipt should be given

22. The type of instruments covered under RBIRFS are ………….

a)Drafts drawn by RBI payable at SBI b) Drafts drawn by RBI payable at RBI c) Drafts drawn by TO/STO/ATO payable at SBI d)a & c above

23. A draft drawn payable on the branch is paid by debit to ……………… a) Sys. Suspense A/c b)DDP (Cheques ) A/c c) Govt. General Account d)GAD e) RBI drafts paid account


402

24. In case of drafts paid by the branch under RBIRFS the branch need to prepare ……….. a) GAD – 11 (9595) b) RBR- 11 c) Sch. 7 only d) all of the above d) a & B above

25. To avoid opportunity loss of interest branches have to ensure dispatch of the below mentioned papers on the very next day of the transaction irrespective of the amount involved – by the fastest mode to GAD………………. a) GAD-11 & RBR –11 along with Original paid draft b) GAD-11 only c) RBR-11 & draft should be sent to RBI d) Draft has to be retained at the branch

26. If the amount of RBI encashment exceeds Rs.25 lacs under noted papers are to be faxed to GAD. a) RBR-11 GAD-11 & RBR –11 along with Original paid draft b) GAD-11 only c) RBR-11 & original draft paid e) Only Draft has to be retained at the branch

27. In case original draft paid is lost in transit than a certificate in lieu of lost paid voucher is prepared on format………….. a) RBR – 12 b) RBR- 18 c) RBR – 20 d) Photocopy of the draft duly attested may be sent

KEY GOVERNMENT BUSINESS -I

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


403

GOVERNMENT BUSINESS -II

1 CIN under OLTAS stands for ______

a) Commercial & Institutional Negotiator b) Certified Insurer Negotiator c) Challan Identification Negotiator d) Challan Identification Number

2 CIN contains a 7-digit BSR code which pertains to ______

a) Bank Code b) Circle Code c) Zonal Office Code d) Branch Code

3 Mr. Suresh Datt has deposited Rs. 10,000/- as income-tax on 25-04-2009 at

SBI Panchkula. In which format, the date will be mentioned on the CIN?

a) 25th April 2009 b) 25-04-2009 c) 250409 d) 042509

4 While filing income tax return under OLTAS, a customer has to ______

a) Submit original copy of challans b) Submit zerox copy of challan c) Mention the CIN no. only d) None of above

5 Mr. K. P. Rai visited SBI Panchkula on 01-01-2009. He does not have PAN

No but intends to deposit the income-tax. How this situation will be dealt with?

a) Mr. Rai will be asked to first obtain PAN b) In the respective column, write “Applied for” and accept challan c) Refer the matter to Controllers d) Refer the matter to Income Tax Deptt

6 Under OLTAS, the collecting branch will be sending the data through

electronic mode to:

a) LHO b) ZO c) Nodal Branch d) Zonal Accounts Office

7 Nodal branch under OLTAS, will be transmitting the data received from the collecting branches to _______

a) LHO b) RBI c) ZO d) GAD, Mumbai


404

8 Under OLTAS, GAD Mumbai will settle the funds with _______

a) RBI Mumbai b) RBI New Delhi c) RBI CAS, Nagpur d) RBI Chennai

9 The maximum period for crediting the tax collections under OLTAS to Govt.

Account at CAS, Nagpur is T + ____days (Excluding Holidays)

a) 3 b) 7 c) 9 d) 10

10 If govt. account is not credited within the stipulated period under OLTAS, interest @ Bank Rate + ______% will be charged

a) 1 b) 2 c) 3 d) 4

11 A new challan form introduced by CBEC-EASIEST FOR DEPOSIT OF Central Excise & Service Tax under EASIEST is ………….

a) GEST –7 b) GAR-7

c) EASIEST-7 d) GESTC-7

12 For conducting govt. business, the relationship of RBI with SBI is that of _____and ______

a) Licensor, Licensee b) Principal, Agent c) Bailor, Bailee d) None of above

13 For credit of pension to the account of a pensioner, the account may be maintained in:

a) Individual name b) Joint names with any person c) Joint name with spouse only d) Either (a) or (c) only.

14 Life Certificate from pensioner is obtained every year in the month of ______

a) May b) June c) November d) December

15 Focal Point branches will be sending _______at monthly intervals to receiving

branches, containing a summary of govt. transactions handled by receiving branches

a) GAD 2 b) GAD 3 c) GAD 5 d) GAD 12


405

16 GAD 13 refers to ______

a) Daily transactions b) Monthly transactions c) Error Adjustment d) None of above

17 RBI drafts are valid for ______months

a) 3 b) 6 c) 9 d) 12

18. Special e-Tax campaign has been launched by the bank w.e.f. …………

a) 1/102007 b) 1/11/07 c) 1/09/07 d)none of the above

19 .EASIEST stands for…………………..

a) EASY ACCOUNTING SYSTEM IN EXCISE & SERVICE TAX b) EASY ACCOUNTING SYSTEM IN EXCISE & SALES TAX c) ELECTRONIC ACCOUNTING SYSTEM IN EXCISE & SERVICE TAX d) ELECTRONIC ACCOUNTING SYSTEM FOR INCOME, EXCISE & SALES TAX

KEY GOVERNMENT BUSINESS -II

1 d 2 d 3 c 4 c 5 a 6 c 7 d 8 c 9 a 10 b 11 b 12 b 13 d 14 c 15 b 16 c 17 b 18 a 19 c


406

GOVERNMENT BUSINESS -III

1 In respect of pension payment to defense personnel who can issue a duplicate pension Payment Certificate in the event of original certificate being lost, stolen or destroyed?

a) Central Govt. b) Ministry of Defense c) Pension Disbursing Authority c) Can not be issued

2 What are the charges / renewal fee if the loss /damage to above certificate is

due to sheer negligence/careless ness of the pensioner?

a) Rs.100/- b) Re 1 c) Rs. 50 d) No charges

3 In the CPPC ( Centralized Pension Processing Centers) concept the commission between Dealing/Home branch and Focal Point branch/ CPPC is distributed -------

a) 75%-25% b) 100% by CPPC c) 100% by Dealing/Home branch d) 25%-75%

4 Facility of Drop Box is not available to which of the following?

a) Local Cheques b) Out station cheques c) Direct Tax Challans d) Inter Bank cheques

5 The release of first pension to NRI pensioner/family pensioner, personal identification at the time of drawls of first payment is----- -

a) Not necessary b) Mandatory c) Certificate from concerned Embassy d) Identification can be done by existing A/c holder

6 Every branch will be paid Rs------- for each pension account opened by debit to LHO Charges A/c

a) 500 b) 100 c) 250 d) No such provision

7 Branches can lodge a claim each time a block of -------- new accounts is opened irrespective of the length of the period in which these accounts are opened. a) 5 b) 10 c) 25 d) 20


407

8 How the amount so received is to be utilized?

a) Given in cash to the staff b) Get together for all the Branch staff c) credited to commission a/c d) benefit is passed over to pensioners

9 If a branch opens ------pension accounts in a calendar month it will get a

bonus of Rs-------for that month.

a) 10/ 500 b) 5/500 c) 50/ 2500 d) No such provision

10 If a single employee/ officer mobilize ------pension accounts in one calendar month, he/ she will be given an individual prize of Rs.--------(in the form of gift)

a) 10/ 1000 b) 5/ 500 c) 25/ 2500 d) 15/2000

11 Whether credit of pension to a joint account is permitted?

a) No b) Yes c) Yes, A/c with spouse only d) Joint a/c with any one

12 Various products of Small Savings Schemes are available to-------

a) Individuals b) HUFs c) Trusts/PFs etc. d) All

13 Permissible period for remittances of Govt. revenues is-------working days in case of local transactions.

a) T+ 3 b) T+5 c) 7 d) 3

14 Permissible period for remittances of Govt. revenues is-------working days in case of out station transactions.

a) T+ 3 b) T+5 c) 7 d) 3

15 Interest charged for delayed period remittances is known as

a) Interest b) Commission c) Misc. income d) Delayed period interest


408

16 It has been decided by Central Pension Accounting Office, Government of India , Ministry of Finance to issue ……………..to the Central Govt. pensioners at the commencement of pension and thereafter, whenever there is a change in the quantum of pension.

a) Pass book b) Monthly statements slip c) Pension Slips d) Certificate

KEY GOVERNMENT BUSINESS -III

1 c 2 b 3 a 4 c 5 b 6 b 7 c 8 b 9 c 10 c 11 c 12 a 13 a 14 b 15 d 16 c


409

GOVERNMENT BUSINESS RBI REMITTANCE FACILITY SCHEME-2007

1. RBI REMITTANCE FACILITY SCHEME-2007 has been launched w.e.f. a) 1/04/07 b) 01/07/07 b) 01/01/07 d)01/10/07 2. The type of instruments covered under RBIRFS are ………….

a)Drafts drawn by RBI payable at SBI b) Drafts drawn by RBI payable at RBI c) Drafts drawn by TO/STO/ATO payable at SBI d)a & c above

3. A draft drawn by RBI & payable on the branch is paid by debit to ……………… a) Sys. Suspense A/c b) DDP (Cheques ) A/c c) Govt. General Account d) GAD e) RBI drafts paid account f) As per revised procedure , no

reimbursement claim will be submitted by our bank.

4. As per RBIRFS- 2007 ( Revised) our bank will not submit the reimbursement

claim for instruments issued by RBI Offices and encashed by our branches . Instead, RBI will credit on a…………….the consolidated amount of drafts issued by them, to our account opened at various DADs of RBI. a) Monthly basis b) Fortnightly basis c) Weekly basis d) Day-to-day basis

5. In case of instruments issued by Agencies other than RBI paid and paid by the SBI branches the branches need to prepare.. a) GAD – 11 (9595) b) RBR- 11 c) Sch. 7 only d) a & B above e) all of the above

6. The details of the drafts issued by RBI will be sent to the respective nodal branch by e-Mail containing DD number , date place and code number of our branch on which draft has been issued, amount & name of the beneficiary by……. a) RBI b) GAD c) GBU d)LHO


410

7. The…………….. will communicate the details of the drafts issued by RBI to the

drawee branches on receipt of the relative funds from RBI . a) Main Branch which will function as a NODAL branch b) RBI c) GAD d)None of the above

8. On receipt of relative funds these will be credited at the NODAL branch to an account styled as ………………… a)RBI Drafts Paid Account b) RBI Drafts Account c) RBI Draft Funds Received Account d) RBI Finds Settlement Account

9. The drawee branch will pay the draft issued by RBI ………….. a) by DDP on the Nodal branch b) through BCGA to Nodal branch c) by debit to GAD d)none of the above

10. The work relating to sending of advices to respective branches will be done by …………… a) RBI offices b) SBI branches c) No advice will be sent d) Infromation will be available on SBI

Times

11. SBI main branches where the Fund Settlement Account is maintained ,they will submit daily report of receipt and payments regarding RBI drafts to ... a)FSLO b)GAD c)LHO d)GBU

12. Besides daily report of receipt and payments regarding RBI drafts , SBI main branches will submit a ………statement to GAD Navi Mumbai for statistical purpose. a) Monthly b) Quarterly c) Fortnightly d) Yearly

13. For cancellation of drafts issued by RBI offices…………. a) Amount will be refunded by nodal Branches, as funds have already been

received b) The issuing RBI office would refund the amount to applicant on presentation

of discharged instrument c)RBI drafts can not be cancelled d)None of the above


411

14. In case of drafts issued by our branches the branches will credit GAD through

…….. and forward RBR-7 to ………. a) RBI Drafts a/c , GAD b) BCGA , GAD c) Govt .Gen. Account, Nodal Branch d) Nodal Branch , GAD

15. If the amount of RBI encashment exceeds Rs.25 lacs under noted papers are to be faxed to GAD. a)RBR-11 GAD-11 & RBR –11 along with Original paid draft b) GAD-11 only c) RBR-11 & original draft paid d)Only Draft has to be retained at the branch

16. In case original draft paid is lost in transit than a certificate in lieu of lost paid voucher is prepared on format………….. a) RBR – 12 b) RBR- 18 c) RBR – 20 d) Photocopy of the draft duly attested may be sent

KEY RBI REMITTANCE FACILITY SCHEME-2007

1 b 2 d 3 f 4 d 5 d 6 a 7 a 8 d 9 b 10 b 11 a 12 a 13 b 14 b 15 c 16 c


412

GENERAL AWARENESS - (COMPUTERS-1)

1 The computer based package introduced for Electronic NOSTRO Reconciliation is

a) NOSTROM b) ELRECON c) VIHAR d) VIRAT

2 Our Bank’s private communication system is called

a) SBICOM b) SBINET c) SBISYS d) None of the above

3 E-TAX facility being provided to the taxpayers to make income tax payments

through internet using net banking facility can be used for paying

a) Corporation Tax, Income Tax and Wealth tax b) Making payment of tax deducted at source c) For making payment of other taxes like interest tax, gift tax etc. d) All of the above

4 SBI launched Internet Banking on

a) 15th January, 2002 b) 15th November, 2002 c) 1st Aug 2000 d) 15th January 2001

5 Central Data Centre for Core Banking Operations situated at

a) Kolkata b) Belapur c) Nagpur d) Pune

6 What is the software used for Telebanking in SBI

a) CROFT b) CRAFT c) KRAFT d) KROFT

7 Which type of credit facility is covered under CGFTS?

a) Fund based b) Non-fund based c) Both (a) & (b) d) None of above

8 SFMS software is developed by

a) WIPRO b) INFOSYS c) SATYAM INFOWAY d) TCS


413

9 Which agency certifies security of our Internet banking site ?

a) CRISIL b) ICRA c) Verisign d) None of the above

10 SBI’s Internet banking site is maintained by

a) SIFY b) Infosys

b) TCS d) Wipro

11 Internet Banking facilitates

a) Customer can see 2 different accounts in 2 different branches in a single server

b) Request for issue of Bank draft c) Booking of railway tickets / pay utility bills d) All of the above

12 VOIP stands for

a) Voice over Internet protocol b) Voice on Internet protocol c) Voice over Internet phone d) Voice on Internet phone

13 WAP stands for

a) Water available point b) Wireless Application Protocol c) Wireless Access Point d) Wind and Power

14 What is “Convergence”

a) Bringing together information, Communication and Entertainment b) Arrangement of loans from different banks for a borrower c) Conversion of foreign currency into domestic currency d) None of the above

15 GLIF entries can arise due to

a) Connectivity problems b) System problems c) Both a or b d) None of the above

15 General facilities provided by an ATM are a) Cash withdrawal b) Cash deposit c) Transfer of fund from one d) All of the above Account to another account


414

16 Which was the first, most popular e-based bookshop in the world

a) yahoo.com b) amazon.com c) ebook.com d) None of the baove

17 What is SBI-FAST

a) Speedily delivery of drafts b)SBI Funds Available at Shortest Time c) Fast cash at ATM d) None of the above

18 What is EIS a) Extra information from software system b) External information c) Executive Information System d) None of the above

19 What is INFINET

a) Information on Internet b) Indian Financial network, set up by RBI c) Internal information network d) None of the above KEY TO GENERAL AWARENESS – COMPUTERS-1

Q. 1 2 3 4 5 6 7 8 9 10

Ans. b b d c b b b d c a

Q. 11 12 13 14 15 16 17 18 19 20

Ans. d a b a c d b b c b


415

GENERAL AWARENESS - (COMPUTERS - 2)

1 Name the two organizations with whom SBI has tie up for co-brand SBI Smart cards

a) Indian Oil Corporation & Indian Air Force b) Indian Airlines and Air India c) No such tie up. d) None of these

2 “SPEED” software developed by SBI refers to

a) ATM b) Software for “Submission of Proposals for ECCB Decisions” c) Software for Telebanking d) None of the above

3 UPS stand for

a) Uninterrupted Power supply b) Uniform power system c) Uninterrupted Power system d) none of these

4 Icon stands for

a) Inter connected b) Internal console c) Image of console d) none of the above

5 DOSCIS software is developed by

a) TCS b) MIS Deptt ,Corporate Centre, Mumbai c) IT Deptt ,Corporate centre, Mumbai d) None of the above

6 “IT FORUM” is published by

a) Staff College , Hyderabad b) SBA, Gurgaon c) SBIICM ,Hyderabad d) None of the above

7 What is Home Page

a) First page of the book b) First pageof the website c) Last page of the website d) None of the above


416

8 What is POP

a) Popular Punjabi song b) Post office protocol c) Postal office protocol d) None of the above

9 What is RAS

a) Name of the soft drink from RASNA b) Remote Access sever , to make non networked branches as part of

communication revolution within SBI c) Real access software d) None of the above

10 Expand MICR

a) Marginal ink Character Recognition b) Magnetic ink Character Recognition c) Magnetic ink Character record d) None of the above

11 What does ROM stand for

a) Read on memory b) Read only memory c) Read out memory d) None of the above

12 What does IDRBT stand for

a) Industrial Development and Research in Banking Technology b) Institute for Development and Research in Banking Technology c) Institute for Rural Development in Banking Technology d) None of the above

13 Information Technology Act 2000 was passed on

a) 9th July 2000 b) 9th June 2000 c) 1st January 2000 d) No such Act

14 Name the application that helps us to make presentations?

a) Word b) Excel c) Power point d) Access

15 CPU consist of

a) ALU b) Main Memory c) Control Unit d) All of the above


417

16 What is the expansion of LAN

a) Locally Arranged Network b) Local Area Network c) Location Adjusted Network d) None of the above

17 National Technology Day is celebrated on

a) 11th May b) Ist July c) 11th June d) 11th July

18 Under the Fast Cash option , cash can be withdrawn in fixed amounts of -------

from the State Bank ATMs

a) Rs. 1000/- , Rs. 2000/- b) Rs. 5000/- , Rs. 10,000/-. c) Rs.1000/-,, Rs. 2000/-, Rs3000/- or Rs. 5000/- d) None of the above

19 Which city is known as “Silicon valley of India”

a) Hyderabad b) Chandigarh c) Bangalore d) None of the above

20 What is the expansion of WAN

a) Whole Area Network b) Wide Area Network c) Wide Access Network d) None of the above

KEY TO GENERAL AWARENESS – COMPUTERS – 2

Q. 1 2 3 4 5 6 7 8 9 10

Ans. A B A C C C B b B B

Q. 11 12 13 14 15 16 17 18 19 20

Ans. B B B C D B A C C B


418

GENERAL AWARENESS - (COMPUTERS -3)

1 When your ATM-cum-Debit card is lost or misplaced what immediate steps would

you take ?

a) Contact Toll free help line, inform loss of card and make request to HOT/Block the card and stop the operations of the card. b) Inform immediately the card issuing branch telephonically about the loss of card followed by written request to make the card Hotlisted /blocked c) Both a & b. d ) None of the above

2 What do mean by the term 'Smart Gold' ?

a) It is the 24 carat gold we sell at our branches b) It is an ATM cum Smart Card co-branded by SBI and IOC c) It is a book written by our President Dr. A.P.J. Abdul Kalam d) None of the above

3 Find the odd man from the following :- a) WAN b) MAN

c) TAN d) LAN 4 Expand the term VIRUS a) Very Important Resources Under Surveillance b) Vulnerable Information Resources Under Surveillance c) Vital Information Resources Under Siege d) None of the above 5 What are the charges for new Domestic ATM card issue?

a) Rs. 200 b) Rs. 500 c) Rs. 50 d) Free of cost

6 What is the name of the traveller loyalty card jointly launched by the Indian

Railways and SBI Card ?

a) SBI Shubyatra b) Shubhyatra c) IR Shubhyatra d) None of the above


419

7 State Bank of India is forging ahead to obtain certification for its ATM and Core

Banking Solution under the British standard for information security management, providing a comprehensive set of controls for best practices in information security. What is that certification called ?

a) SB7788 b) BS7799 c) SB7799 d) None of the above

8 A new payment system which takes care of transactions between SBI and Associate banks is :

a) RTGS b) NEFT c) GRPT d) None of the above

9 Using onlinesbi.com, a retail customer cannot do the following

transaction/business :

Payment for mobile bills View account information Open a new account Transfer his account to other branch

10 What are the annual charges to be levied from an existing ATM card holder ?

a) Rs. 100 b) Rs. 50 c) Rs. 150 d) None of the above

11 Which bank has launched first-ever floating ATM on a boat ?

a) State Bank of India b) Bank of Baroda c) Punjab National Bank d) None of the above

12 What are the charges levied by the bank for issuance of duplicate ATM card?

a) No charges are levied b) Rs.100 c) Rs.200 d) Rs.500

13 RTGS was started by RBI on :

a) 26th July 2000 b) 26th June 2002 c) 26th March 2004 d) 26th April 2005


420

14 RTGS is a :

a) Payment System b) Receipt System c) Both a & b d) None of these

15 RTGS enables transfer of funds :

a)Between two banks . b)From the remitter’s account in a particular bank to the beneficiary’s account. c)Both a & b d)None of the above

16 Under normal circumstances, if we transfer funds from one account to another bank's account through RTGS, how long will it usually take to credit that account ?

a) 1 Day b) 15 Minutes c) 30 Minutes d) 1 Hour

17 If a customer applies for issuance of draft through his Internet Banking account,

what charges we will charge from him?

a) Usual draft charges b) No charges at all c) Usual draft charges plus courier charges d) only courier charges

18 Under retail Internet Banking, what is the maximum limit for draft ?

a) Rs. 25,000/- b) Rs.40,000/- c) Rs.50,000/- d) Rs.5,00,000/-

19 Under retail Internet Banking, what is the maximum limit for third party transfer ?

a) Rs. 25,000/- b) Rs.40,000/- c) Rs.50,000/- d) Rs 5.00 lacs

20 How e-Pay (online bill payment) facility of SBI benefits the customer ?

a) It enables the customer to schedule his payments for various bills. b) It enables him to automatically pay on specific amount/day every month. c) It enables him to pay/view his transaction. d) All the above


421

21 What is the amount charged from the customer for re-generation of PIN for his

ATM-cum-Debit card ?

a) Rs. 50/- b) Rs.100/- c) Rs.200/- d) No fee charged.

22 State Bank of India has entered into an agreement with Western Union's Kouni

Travels. The duo will falicitate the customer in :

a) Inward remittance only b) Outward remittance only c) Both Inward & Outward remittances d) None of these

23 Under Internet Banking,what is the maximum limit for inra branch funds transfer ?

a) Rs. 25,000/- b) Rs.40,000/- c) Rs.50,000/- d) Rs 10.00 lacs

24 Who has launched NEFT ?

a) RBI b) SBI c) Both RBI & SBI d) RBI, SBI & ICICI Bank

25 Under Internet Banking, the maximum limit for inter branch funds transfer is ?

a) Rs. 25,000/- b) Rs.40,000/- c) Rs 5.00 lacs d) Rs 10.00 lacs

26 Under NEFT, the funds settlement will take place

a) Twice a day b) Every half an hour c) Only once a day i.e. at 12 Noon d) Any time the batch processing takes place at the funds collection centre

27 State Bank of India has launched its ‘Multi City Cheque’. These cheques books

can be issued at : a) only CAG branch b) Any CBS Branch c) Only MCG Branch d) None of the above

28 What are the instrument types assigned to 'Multi City Cheques' by RBI ?

a) 29 b) 30 c) 31 d) a,b & c


422

29 What is the demat service product of SBI’ ?

a) RTGS b) NEFT c) eZ Trade d) EFT

30 Why has the minimum transaction limit for RTGS transactions been raised ?

a) To reduce traffic on RTGS b) To increase usage of NEFT c) Both a & b d) None of the above

KEY TO GENERAL AWARENESS – COMPUTERS – 3

Q. 1 2 3 4 5 6 7 8 9 10

Ans. C B C C D B B C D B

Q. 11 12 13 14 15 16 17 18 19 20

Ans. A C C A B C C D D D

Q. 21 22 23 24 25 26 27 28 29 30

Ans. A A d A B D B D C c


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CORE BANKING SOLUTION - 1

1. Centralised Data Base/Main Server for Core Banking Branches has been

installed at: -

a) Central Data Centre at Belapur, Mumbai b) SBIICM, Hyderabad c)FD, Kolkata d) All LHO Headquarters

2. The CBS software is different from Bankmaster for the undernoted reasons:

a) The Bankmaster had a stand-alone server and database while in CBS these are interconnected between all the branches.

b) While CBS is a window-based package, Bankmaster was not. c)While in Bankmaster, the customer becomes a customer of a specific branch,

in CBS he becomes customer of the Bank as a whole d) All of the above.

3. CBS Software acquired by the bank is: -

a) B@ncs24 b) B@ncsLink c) Finance-one d) Trade-Finance

4. Name of the Front-end software used at CBS branch server is: -

a) B@ncs-24 b) B@ncs-link c) Finance-one d) Trade-Finance

5. The bank has acquired the CBS software from: -

a) TCS Ltd., India b) FNS, Australia c) China Systems, Dubai d) HP Systems, USA

6. Name of the software acquired by the bank for maintaining CGL (Corporate

General Ledger) accounts in core banking environment is: -

B@ncs-24 b) B@ncs-ink c) Finance-one d) Trade-Finance

7. The bank has acquired 'Finance-one' from: -

a) Comlink, USA b) FNS, Australia c) China Systems, Dubai d) HP Systems, USA


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8. Name of the software acquired by the bank for Trade-Finance is: - a) B@ncs-24 b) B@ncs-link c) Finance-one d) Exim-Bills

9. The bank has acquired Exim Bills from: - a) B@ncs-24 b) B@ncs-link c) China Systems, Dubai d) HP Systems, USA

10. 'Disaster Recovery Centre' for the CBS has been located at: -

a) Chennai b) New Delhi c) Hyderabad d) Bangalore

11. Name of the company that has been entrusted with the work relating to

customization, integration and pilot implementation of CBS is: -

a) TCS Ltd., India. b) FNS, Australia c) China Systems, Dubai d) HP Systems, USA

12. Core Banking Solution-Hardware installed at CDC has been acquired from:

a) TCS Ltd. b) PCS Ltd. c) Wipro d) HP Systems, USA

13. The first branch of State Bank of India where Core Banking was started is:

a) PBB-Chandigarh b) PBB-Hyderabad c) Hirannandani, Mumbai d) PBB-Chennai

14. Core Banking was first implemented on: -

a) 29/06/2003 b) 01/09/2003 c) 16/09/2003 d) 14/12/2003

15. Inter-connectivity of the CBS branches is maintained with CDC-Belapur through:

a) Internet b) SBIConnect c) STEPS d) All the above

16. In case of failure of connectivity, the CBS branch: -

a) Cannot perform any function b) Can perform limited functions available on OFFLINE Mode c)Can perform functions only from a separate node provided at the branch for the

purpose d) None of the above


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17. Multi City cheques have been introduced for Mid Corporate Customers in many

Mid Corporate Group Branches on CBS. The maximum value of single MCC would be

a) 10 Lacs b) 5 Lacs c) 15 Lacs d) 20 Lacs

18. In Core Banking Solution, a 'Teller' means: -

a) Branch Teller b) Single Window Operator c) All the users d) Automated Teller Machine i.e. ATM

19. In Core Banking Solution, a 'Vault Teller' means: -

a) Cash Officer b) Accountant/Joint Custodian c) Branch Manager d) All of the above

20. You can log into Core Banking Software (a 'Window' based programme)

through :-

a) My Computer b) My Documents c) Internet Explorer d) Microsoft Word

21. Finance-one' software is available at CBS branches :-

a) On all the nodes b) On one or two nodes- preferably with Branch Manager/Accountant etc. c)On the node of officer entrusted with UCO's powers d) None of the above

22. http://10.0.2.154 is the address of :-

a) Site of SBITIMES b) Site of E-Circulars c)Site of CBS Help Desk d) Site of E-learning- a package for self learning CBS

23. http://10.0.2.153 is the address of :-

a) Site of SBIMAIL b) Site of E-Circulars c)Site of CBS Help Desk d) Site of E-learning- a package for self learning CBS


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24. http://10.0.23.23/caisd/pdmweb.exe is the address of :-

a) Site of SBITIMES b) Site of E-Circulars c)Site of CBS Help Desk d) Site of E-learning-a package for self learning CBS

25. Sites of E-Circulars, E-learning and CBS Help Desk are available :-

a) Through Internet b) Through SBICONNECT c) Both of (A) & (B) d) None of the above

26. Sites of E-Circulars, E-learning and CBS Help Desk are available on :-

a) The nodes provided to the Branch Manager & Managers of Division b) The nodes provided to the Branch Manager & Accountant c) The nodes provided to the Branch Manager & UCO d) All the nodes in any branch/office of the Bank on SBICONNECT

27. ID of an employee of State Bank of India in Core Banking Solution will be

a) His/her Provident Fund Index Number b) Any seven digits/letters chosen by the employee c) Date of birth of the employee d) A unique number will be allotted by CDC, Belapur

28. Minimum alpha-numeric required for user's password in CBS is :- a) Five digits b) Six digits c) Seven digits Eight digits

29. In a CBS branch, an authorized user can log in from :-

a) Any terminal subject to the total no of terminals linked with CDC Belapur. b) Terminal specified by the Branch Manager c)Terminal specified by the System Administrator d) Terminal specified by the CDC, Belapur

30. In CBS branches, after permanent transfer of a user, his/her ID will be

transferred to his/her new branch by :-

a) The branch from where he/she is transferred b) The branch to which he/she is transferred c) CDC, Belapur, Navi Mumbai d) Any of the above


427

KEY ASSIGNMENT CORE BANKING SOLUTION – 1

Q. 1 2 3 4 5 6 7 8 9 10

Ans. A D A B B C A D C A

Q. 11 12 13 14 15 16 17 18 19 20

Ans. A D C B B B A C B C

Q. 21 22 23 24 25 26 27 28 29 30

Ans. B A B C B D A B A A


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CORE BANKING SOLUTION - 2 31. In CBS system, to move from one field to another, the user has to use

undernoted keys/mouse:

a) <ENTER> Key b) <TAB> Key c) Mouse d) (b) &/or (c)

32. In CBS, management of cash has been made a part of the software/system. As

such, undernoted official(s) will become the custodian of the cash held at the branch overnight :-

a) Branch Manager b) Accountant/Joint Custodian c) Cash Officer d) All of the the above jointly

33. In CBS, Cash Drawer has been referred to as :-

a)Cashier's cabin b) Strong Room c)Cashier's hand balance box d) A tool for recording cash receipts/payments/balance details of any individual

user 34. In CBS, management of security forms has also been made a part of the

software/system through menu- VPIS. The term VPIS stands for :-

a) Valuable Paper Industry Sector b) Valuable Paper Inventory System c) Valuable Paper Instrument System d) Valuable Paper Instrument Sector

35. In CBS, the undernoted official is treated as custodian of security forms :-

a) Branch Manager b) Accountant c) Cash Officer d) All of them jointly

36. Like Bankmaster, CBS screens also have MANDATORY and OPTIONAL fields.

Which of the following colours has been given to the MANDATORY fields :-

Yellow b) Red c) White d) Blue

37. In CBS, 'Loan Tracking' concept has been introduced for Demand Loans/Term Loans. In which of the undernoted ways, 'Loans Tracking' helps the user :-


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a) It guides him regarding all the activities related to grant of/disbursement of Demand Loans/Term Loans

b) It guides him only regarding the follow-up of Demand Loans/Term Loans c) It guides him only regarding interest rates and margin rates specified for

various types of Demand Loans/Term Loans d) None of the above

38. In CBS, Customer Information File (CIF)/Customer Number is necessarily

created for the undernoted type(s) of customer(s) :-

a) Introducer b) Nominee c) Joint Account Holder d) a & c

39. In CBS, every Customer Number/CIF is of ______digits :-

Nine b) Ten c) Eleven d) Twelve

40. Recording of KYC (Know Your Customer) ID- as directed by the RBI is

compulsory while creating a new Customer in CBS. To verify that the ID produced by the customer is adequate to operate bank account, the ID should have minimum ____ KYC scores :- a) 99 b) 100 c) 110 d) 111

41. In CBS, every Account Number generated by the centrally located server at CDC

is unique. Every Account Number is of __digits. a) Nine b) Ten c) Eleven d) Twelve

42. CMP stands for :-

a) Cash Management Product b) Collection Management Product c) Clearing Management Product d) Classified Management Product

43. All the internal (non-customer) accounts have been referred in the CBS as a) CGL b) BGL c) Branch Clearing Accounts d) Inter Branch Accounts

44. In case of any difference between BGL and CGL balances that may creep in, an

software called GLIF has been provided to facilitate its location. Full form of the term GLIF is :-


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a) General Ledger Information File b) General Ledger Interface File c)General Ledger Internal Accounts File d) None of the above

45 In CBS, there is a concept called 'NPA Tracking' which means :-

a) The system will help the user to know the existing as well as probable NPA status of all the outstanding loan accounts

b) The system will automatically change the asset category of all the loan accounts on the specified date

c) The system will put through INC entries on its own All of the above

46. In CBS, overdraft in Savings Bank Accounts will be allowed by :-

a) Debiting the amount to a Current Account named 'Overdrafts Allowed In Savings Bank Accounts'

b) Debiting the amount to the concerned Savings Bank Account itself c) Can be allowed only by CDC, Belapur Cannot be allowed at all

47. There are 16 capability levels of CBS users. Out of which levels available with the branch staff are:

a) 5 b) 9 c) 11 d) 7

48. The Term used in CBS, corresponding to ‘Job Stream’ in BankMaster, through

which a number of transactions can be put through in CBS is

a) CBS Feed b) Trickle Feed c) Auto Feed d) None of the above

49. To view the images ( photos or signatures ) in a CBS system, one can press

a) F10 b) F11 c) F3 d) F8

50. Many Reports are available in a CBS branch. The Day books in a CBS branch

have been given the name of

a) V V R b) CBSDB c) DAY BOOKS d) None of the above


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51. Default password of ‘Service Desk’ of CBS is

a) Your P.F. Index b) Your branch code c) service desk d) servicedesk

52. If a Customer number of a branch starts with 80, it indicates that

this customer number relates to a customer migrated from BankMaster b) this customer number has been created in B@NCS24 c) this customer number relates to a customer of some other branch could be any one of the above

53. Number of IRAC status codes for Loan Accounts in B@NCS24 are

a) 5 b) 9 c) 11 d) 8

54. During OFFLINE mode in a CBS branch, following can be done

a) Transaction of a non-home branch b) Government Transactions c) Opening of an Overdraft Account d) None of the above

55. Under CBS umbrella, RTGS services have been enabled in

a) Only those branches who have been identified b) All the CBS branches. c) Only the branches in Kerala Circle on Pilot basis d) None of the CBS branches

56. For making a correction in a CBS transaction, one has to know its journal number

which helps in its reversal and subsequent correction. Such reversal is possible

a) Within 2 days of effecting the transaction b) Within 1 hour of effecting the transaction c) On the same day but before sending EOD signal from the branch Depends upon CDC Belapur

57. Soft Copy of a file containing Salary or Pension, when sent to CDC through one

of the options of CBS gets posted thereat through a process called Trickle Feed. Transactions normally gets posted in the account

a) After 2 days of sending the softcopy b) Within 1 hour of sending the softcopy c) At period intervals – depends upon CDC d) None of the above


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58. User type of Accountant in a CBS branch is

a) 40 b) 50 c) 60 d) 10

59. When a CBS branch has to go on OFFLINE following activities can not be done

a) Issue of drafts b) Cash Receipts c) Cash Withdrawals d) Printing of Cash Reports

60. In CBS branch calendar WW is defined as a working day . Holidays are defined

as

a) HL b) HH c) HO d) HY

KEY ASSIGNMENT CORE BANKING SOLUTION – 2

Q. 31 32 33 34 35 36 37 38 39 40

Ans. D B D B B D A D C C

Q. 41 42 43 44 45 46 47 48 49 50

Ans. C A B B D B B B A A

Q. 51 52 53 54 55 56 57 58 59 60

Ans. D A D D B C C B A B


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CORE BANKING SOLUTION – 3 61. In CBS, during OFFLINE mode Accounts of the following can be opened

a) P Segment b) SIB Segment c) AGR Segment d) None of the above

62. To logout from the CBS system, which works under WINDOW environment, you

have to

a) Press [X] button on the top right hand on the screen b) Shut of the system c) Chose log off button d) Any one of the above e) Sign off

63. A CBS word equivalent to ‘Referral’ of BankMaster is

a) Que b) CBS Referral c) Chose logout button d) Any one of the above

64. Every Teller in a CBS branch has an electronic Cash Drawer and can make the

customer cash transactions EXCEPT the a) Cash Officer b) Field Officer c) Accountant d) Branch Manager

65. Which of the following is not true in CBS environment

a) Tellers can swap cash in their Cash Drawer b) Tellers can swap VPIS (Drafts/Cheque Books etc. ) among themselves c) Tellers can exchange cash with a customer d) All of the above

66. Internal Accounts of all the CBS branch like Charges, Branch Cash Balance

Account etc which are called BGL Accounts. Numbering convention of such accounts is such that

a) First five digits are the branch code – Second five are common b) First five digits are common – Second five are branch code c) Each branch has a unique BGL Account number d) None of the above

67. Last digit of a 11 digit Account number in a CBS branch is called

a) Check digit b) Unique digit c) Last digit d) None of the above


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68. Reports relating to GLIF – matching of B@NCS24 and Finance1 – indicating the

difference if any are available at a CBS branch

a) Within 1 hour of sending EOD signal b) Before sending EOD signal c) On the next day None of the above

69. Which one of the following is False.

a) Number of a migrated customer account starts with 80 b) Number of a customer opened in B@NCS24 starts with 85 c) Number of a migrated Account starts with 1 None of the above

70. ‘Status List’ of Bankmaster has an equivalent in B@NCS24 and is called

a) Shadow File b) Night File c) PD File d) FB Data

71. How many CBS sessions can be opened simultaneously by a Teller ?

a) 1 b) 2 c) 3 c) 4

72. Which function key is pressed to repeat the Customer/Account number typed last

on a CBS screen.

a) F9 b) F11 c) F12 d) None of the above

73. When a customer having BankMaster Account number wants to know his

corresponding CBS number, which function key is pressed

a) F3 b) F4 c) F7 d) F8

74. Institute Code of SBI in B@NCS24 (in use by the SB Group) is

a) 1 b) 2 c) 3 d) 4

75. CC and OD accounts have been clubbed in CBS whereas with Deposit Account

whereas TL and DL accounts clubbed separately. The rationale is


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a) In Deposit/CC/OD, cheques books can be issued b) In Deposit/CC/OD, accounts can have credit balances c)In DL/TL, accounts can not have credit balances d) All of the above.

76. In CBS system the term collateral means

a) Primary Security Only b) Secondary Security Only c) Covers both of them d) None of the above

77. Collateral number generated by CBS system is of

a) 11 digits b) 10 digits c)12 digits d) 9 digits

78. In CBS, credit voucher of a S.C sent shall be included

a) in the vouchers of the day on which it was dispatched b) in the vouchers of the day on which it was entered in the system c) in the vouchers of the day on which it is realised / returned d) None of the above

79. In any CBS screens there are 2 types of fields, white and blue. While filling the

values in these fields

a) Blue fields are mandatory – others can be ignored b) White fields are mandatory – white ones can be ignored c) Blue fields are mandatory – others can not be ignored d) White fields are mandatory – others can not be ignored

80. In any CBS system Interest frequency has to be defined while opening a TDR

account along with the account number in which the interest has to be credited by the system. Which of the interest frequency can NOT be given. a) Anniversary Quarterly b) Anniversary Monthly c) Quarterly d) Anniversary Yearly

81. In any CBS branch which of the following transactions relating to P-Segment can

not be made from a non-home branch.

a) A cheque of Rs 15000.00 without paying any charges b) A cheque of Rs 20000.00 without paying any charges A cheque of Rs 25000.00 after paying charges A withdrawal of Rs. 18000.00 without paying of charges


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82. In a CBS branch which of the following is wrong (in context to non-home branch transactions relating to a P-Segment Customer).

a) Transactions of an illiterate customer can not be done b) Transactions relating to a dormant account can not be made c) Transactions relating to inoperative account can not be made d) Transactions relating to a joint account where drawer is the payee can not be

made. 83. In a CBS branch if there is a connectivity failure

a) No payment can be made b) payment can be made on basis of Deposit accounts balance list c) Payment can also be made after verifying the balance from another Core

banking branch telephonically d) Both b & c

84. In a CBS branch the account BGL account beginning with 98582 represents

a) Atm entries where account debited but cash not paid b) Atm entries where cash paid but account not debited c)None of the above

85. On every incoming message through RTGS, to know how many messages have

come, one has to

a) Keep a Register to note how many message have been received b) To go to enquiry option and click on ‘All Statuses’ to see the status of

‘Successful messages’ c) To enquire the account related to STEPS (RTGS) messages in the CBS

system through BGL option d) All of the above

86. In a CBS branch conducting OLTAS transaction, which of the following report is

generated daily for submission to the Focal Point Branch.

a) GAD 2 b) GAD3 c)GAD4 d) GAD 5


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87. In a CBS environment payment of IOIs is safer as compared to drafts because

a) The inventory allocated to a particular branch is fed in the system by Central

stationary department b) The payment involves the input of BIAK (Built in authentication key) which

cannot be bypassed. c) Both a) and b) d) None of the above

88. In a CBS branch the following is False a) If a Customer gives a cheques drawn on another core branch at the same

centre, the same shall be immediately be presented in a special clearing b) At the same centre no commission is payable by a customer depositing an

amount of 25000 from a CBS branch to another c) Rates of TPM depend upon the population code of the branch, which needs to

checked by the branch to ensure accuracy of TPM rates. d) Weekly figures of the Branch / Bank are available every day instead of only on

Fridays in Bank Master.

89. In a CBS branch the corrections to be made on account of errors pointed in CIS have to be corrected. In this context, which of the following statement is correct. Corrections are to be done in a) In DOSCIS b) In B@ncs24 c) No corrections to be made in B@ncs24 as these are automatically written

back by DOSCIS software a) and b) both

90. Number of ‘Day Book’ kind of reports sent by CDC Belapur to every branch on

daily basis after EOD thereat are

a) VVR b) VVR & BGL c) VVR, BGL & Core Power d) VVR, BGL, Core Power & System Generated transactions


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KEY ASSIGNMENT CORE BANKING SOLUTION - 3

61. d 62. e 63 a 64. c 65. b 66. b 67. a 68. c 69. d 70. a 71. b 72. c 73. d 74. c 75. d 76. c 77 b 78 c 79 c 80 c 81 d 82 d 83 d 84 a 85 b 86 d 87 c 88 a 89 d 90 d


439

INFORMATION & TECHNOLOGY 1

1) SB Connect, the dedicated lease line connectivity, is maintained by ----- a) TCS, India b) FNS, Australia c) Datacraft, Singapore d) HP System, USA 2. Which is the first branch of SBI on Core Banking Solution? a) PBB Bandra, Mumbai b) PBB Belapur, Mumbai c) PBB Hiranandani, Mumbai d) PBB Madame Cama Road, Mumbai 3. The State Bank of India’s internet banking site is... a) www.onlinesbi.com b) www.statebankofindia.com c) www.sbi.co.in d) www.inb.sbi.com 4. Corporate Internet Banking was rolled out by the Bank on a) 1st March 2002 b) 1st July 2003 c) 1st July 2002 d) 1st April 2003 5. The BGL account beginning with 98582 refers to a) ATM trancactions where cash is paid but account not debited b) ATM trancactions where cash is not paid but account is debited c) None of the above 6. Under the Fast Cash option, cash can be withdrawn in fixed amounts of ------ from our ATMs a) Rs. 1000/- , Rs. 2000/- b) Rs. 5000/- , Rs. 10,000/-. c) Rs.1000/- , Rs. 2000/- , Rs. 3000/- or Rs. 5000/ d) Rs. 2000/- , Rs. 5000/- , Rs 7000/- 7. The name of the software used for Tele banking is a) Datacraft b) Intrasoft c) Softcraft d) CRAFT


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8. The software being used in SBI for conduct of government transactions and electronic reporting has been developed by a) IDRBT b) SBI c) Infosys d) TCS 9. The National Financial Switch (NFS) promoted by IDBRT relates to a) Networked Foreign Exchange transactions among banks b) Internet Banking Connectivity c) ATM connectivity among banks d) Single National Financial Software for all banks 10. The turnkey solution provider for implementing National Financial Switch (NFS) is a) NCR Corporation b) Euronet Worldwide c) FNS Australia d) HP Systems 11. The Security of SBI’s internet Banking site is certified by a) VERISIGN b) SECURESIGN c) INBSIGN d) TRUESIGN 12. SBI ATM Cards are processed and issued by a) ATM Switch Centre, Belapur b) Mastercard c) Venture Infotech Global Pvt. Ltd. Mumbai d) GECBPMSL, Gurgaon 13. For issuance of duplicate ATM Card in case of lost/damaged card a charge of Rs_____ is levied. a) Rs 100/- b) Rs 200/- c) Rs 50/- d) Activated Card 14. “Hotlisting” of Card refers to a) Mutilated Card b) Deactivation of lost ATM Card at ASC c) Revalidation of Card after expiry. d) None of the above


441

15. SBI ATM-cum-Debit Card can be used for purchasing goods and services at Merchant Establishments displaying a) Mastercard logo b) VISA logo c) Maestro logo d) None of the above 16. Can a Card be issued against a minor’s account? a) No b) Yes, a card may be issued to a minor if he/she is above 14 years of age. An add-on card may also be issued to the guardian. c) Card may be issued only to the Guardian. d) None of the above. 17. The connectivity infrastructure of our ATM Network is maintained by a) ATM Switch Centre b) NCR Corporation c) HCL Comnet (VSAT) & Datacraft (SB Connect) d) Satyam 18. The charges realized for using ATMs of other Banks under Bilateral Agreement in case of saving bank account are: a)upto 10 withdrawals free and above 10 withdrawal transactions, Rs.20/- per withdrawal and NIL for balance enquiry b) upto 5 withdrawals free and above 5 withdrawal transactions, Rs.20/- per withdrawal c) upto 3 withdrawals free and above 3 withdrawal transactions, Rs.20/- per withdrawal and NIL for alance enquiry d) None of the above 19. ATM Switch Centre is managed by the Bank with the technical support of a) C&I Project, Corporate Centre b) NCR Corporation c) Financial Software & Systems, Chennai d) Datacraft

20. For the purpose of accounting, cash loaded in our ATM belongs to a) Concerned Branch b) ASC, Belapur c) ATM Project, Corporate Centre d) None of the above


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KEY INFORMATION & TECHNOLOGY 1

1 2 3 4 5 c c a a C 6 7 8 9 10 c d b c b

11 12 13 14 15 a c b b c

16 17 18 19 20 b c b c a


443

INFORMATION & TECHNOLOGY 2

1. Offline transactions in SBI ATMs are made possible through maintenance of a) Opticash b) Groupwise c) Positive Balance Files (PBF) d) NCR Managed Services 2. What is Opticash ? a) Cash loading in ATM by outside agency b) Management of Cash in ATM by NCR to avoid cash outages c) Remote Monitoring of ATMs by Switch Centre d) None of the above 3. BANKNET has been established by a) All Banks b) SBI c) RBI d) Co-operative Banks 4. In SBI, ATM stands for a) Automated Time Money b) Automated Teller Machine c) Automated Teller Machine or Anytime Money d) Anytime Money 5. What does SBIR stands for? a) State Bank Inward Remittance b) State Bank Instant Remittance c) State Bank In-house Remittance d) State Bank of India Remittance 6. Network Service Provider for Core Banking is a) Airtel b) Reliance c) BSNL d) Broadband Service 7. Core Banking Solutions (CBS) for foreign offices software is called a) Finance b) Financial c) Finnacle d) Bank Master


444

8. The CBS for foreign offices is supplied by a) Satyam b) Infosys c) FNS d) Data Craft 9. As per BPR, Document Archival Centres have been created which will function as. a) Centralized Document Execution Centre b) Centralized Document Printing Centre c) Centralized Record Maintenance cell d) Centralized Document Centre for closed accounts 10. State Bank of India has launched its ‘Multi City Cheque’. These cheques books can be issued at : a) Any CAG branch of the Bank b) Any CBS Branch c) Only Bankmaster Branch d) Only MCG Branch 11. After the establishment of Liability Processing centre the account would be opened in ----to----minutes. a) 10-12 b) 8-10 c) 6-8 d) 7-8 12. Who can create securities?

a) All staff with a capability of 2 and above can create security.

b) All staff with a capability of 3 and above can create security c) All staff with a capability of 5 and above can create security d) None of these 13. Who can authorise the securities thus created? a) Any Official of the branch with a capability of 5 and above can authorise the securities created. Creator and authoriser should be different persons. b) Any Official of the branch with a capability of 7 and above can authorise the securities created. Creator and authoriser should be different persons. c) Any Official of the branch with a capability of 9 and above can authorise the securities created. Creator and authoriser should be different persons. d) None of these


445

14) What is the maximum amount that can be entered in the ‘Hold Value’ column?

a) The hold value can be up to the value of TDR plus accrued interest. b) The hold value can be up to the value of TDR alone c) The hold value can be up to the value of loan amount d) None of these. 15. What is a Collateral Number? a)When a security is created, the regt no. on the regt.deed of property to be mortgaged is entered as collteral number. b) When a security is created, the system generates a unique 10-digit number automatically and this number can be used to enquire into the details of securities, the loan account number for which the security is created and other relevant details of the customer. c) When the security is created, the particulars of the collateral security are noted in a register, that running serial number is called collateral number. d) None of these 16) What is meant by SDV? a) SDV sub-module refers to Safe Deposit Value, It handles maintenance of lockers,

b)SDV sub-module refers to Safe Deposit Value, it handles Collecting periodical rent etc.

c) Both 1 & 2 d) None of these 17)What is meant by SC? a) SC sub-module deals with two major functions viz. Safe Custody of articles / scrips, Security Register / Ledger and maintenance of gold ornaments. b) Issue of Safe Custody Receipt to the customers, Printing of COS 49, Ex-custody Register functions c) Both A & B d) None of these 18) While creating TDR as security, whether the system will automatically mark the interest rate in the Loan account? a)For Demand / Term Loan accounts, the system will automatically fix the interest rate at the account level. b) For Demand / Term Loan accounts, the system will not fix the interest rate at the account level. It will have to be done manually. c) For Demand / Term Loan accounts, the system will fix the interest rate after the EOD.


446

d)None of these. 19) What will happen to the ‘Hold / Drawing Power’ when the TDR is rolled over?

a) When the TDR is rolled over, the hold in the account gets removed, the drawing power remains as such. b)When the TDR is rolled over, the hold in the account does not get removed, only the drawing power becomes zero. c) When the TDR is rolled over, both the hold & drawing power gets removed d) None of these 20) The branch should ensure that there is only one person with user type ---- and ----.

a) 50 & 60 b) 40 & 50 c) 40 & 60 d) 10 & 60

KEY INFORMATION & TECHNOLOGY 2

1 2 3 4 5 c b c b b 6 7 8 9 10 c c b c a

11 12 13 14 15 b a a a b 16 17 18 19 20 c c a b a


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MOBILE BANKING

1. For Mobile Banking registration, SMS ‘<MBSREG> <Mobile Make > < mobile Model’ has to be sent to a) 567636 b) 567656 c) 567676 2. Name of the Mobile Banking Software is : a) State Bank freedom b) SBI freedoM c) SB freedom 3. The catch line which goes with Mobile Banking is : a) With you, All the way b) Your Mobile, Your Bank c) Bank with convenience 4. Mobile banking services as at present are meant for a)SME customers only b) SME and personal segment customers c) Personal segment customers only d)C & I customers only 5. Daily transaction limit for fund transfer in normal transaction is : a) 50,000 b) 10,000 c) 25,000 6. Daily transaction limit for Bill/Merchant transaction is : a) 50,000 b) 10,000 c) 25,000 7. What is the overall monthly limit of transaction through Mobile Banking.? a) 250,000 b) 30,000 c) 35,000 8. What is the next step after changing the MPIN for registration of mobile banking a) Entering the CIF b) Answering a secret question c) register at ATM or branch


448

9. What is the number of maximum accounts which can be enabled for Mobile

Banking ? a) 1 b) 2 c) 3 d) 5 10. During(Prior to ) registration process what is mandatory to change ? a) MPIN b) USER ID c) Both of above d) None of above 11. MPIN in Mobile Banking stand for a) Mobile Banking Personal Index Number b) Mobile Banking Personal Identification Number c) Member Banking Personal Identification Number 12. What is the length of MPIN ? a) 4 characters b) 5 characters c) 6 characters d) 8 characters 13. What type of transaction can not be carried out in Mobile Banking as on date ? a) Transafer of funds to other Bank Account b) Cheque Book Request c) Railway ticket Booking d) None of these 14. Whether Internet Banking registration is mandatory for accessing Mobile Banking a)Yes b) No 15. How many users can use Mobile Banking on a particular Mobile phone a) 2 b) 5 c) 1 d)3


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16. How can Mobile Banking Services be terminated ?

a) Cannot terminate once registered b) Selecting the option ‘Deregistration’ in the settings menu c) Deregister through an ATM d) Both B & C 17. How many transactions of a account can be viewed in mini statement option

a) 2 b) 5 c) 8 d) 10 18. First step for bill payment through Mobile Banking is : a) Add Biller b) Get Help c) Get Format d) None 19. Is registration is mandatory for Mobile Top up ? a) Yes b) No 20. When is the request for Mobile Top up invalid ? a) Non existing mobile number b) Post paid mobile number c) Insufficient funds in your account d) Incorrect amount as per the plan of the prepaid connection e) All of the above 21. In case of Dmat account services available in mobile banking it is not possible to

do one of the following

a) View last 5 transactions b) Request for DIS c) View portfolio d) sell shares

22. WAP stands for

a) Wireless application protocol b) Wireless added process c)Wireless arranged protocol


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23. WAP based mobile banking service is meant for a) only java enabled mobile phones which have GPRS connectivity for GSM users or data connectivity for CDMA users b) only non java enabled mobile phones which have GPRS connectivity for GSM

users or data connectivity for CDMA users c) Both java and non java enabled mobile phones which have GPRS connectivity for

GSM users or data connectivity for CDMA users d) Neither java nor non java enabled mobile phones which have GPRS connectivity

for GSM users or data connectivity for CDMA users 24 In SMS banking the daily /monthly limits are a) 5000/50000 b) 1000/5000 c) 10000/50000 d) None of the above 25 .For topping a mobile connection through SMS banking what is not necessary a) MMID of the beneficiary b) Mobile no. of the beneficiary c) Service providers name d) Amount of top up 26 For funds transfer through IMPS banking what is not necessary a) MMID of the beneficiary b) Mobile no. of the beneficiary c) account no. of the beneficiary d) Amount to be transferred 27. For Mobile Banking registration, under SMS banking SMS (SMS<MBSREG>) has to be sent to a) 567636 b) 567656 c) 567676 d) 9223440000 28. What type of transaction can not be carried out in SMS Mobile Banking facility ? a) Transafer of funds to other Bank Account b) balance enquiry c) Mobile top up d) DMAT enquiry


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29 Transactions through IMPS (Interbank mobile payment service) do not involve a) Core banking b) National payment corporation of India c) RTGS network 30 . If already registered in other modules of mobile banking ,if one has to avail SMS

Mobile Banking facility :

a) It is necessary to deregister in other modules before registering for SMS Banking b) It is not necessary to deregister in other modules before registering for SMS Banking

c)USSD and SMS Mobile Banking facility can be taken together.

31. In SMS Mobile Banking a) The messages are encrypted b) The messages are not encrypted ,hence the customer is requested to delete the SMS sent as they may contain MPINs.

c ) Thev messages are communicated in an interactive session as in the case of USSD

ANSWERS MOBILE BANKING

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

Q 31 Ans. b


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INB General 1. What does MIT refer to in case of INB ? a) Manual of information and technology b) Main internet technology c) Manual intervention transactions d) Manual information transaction 2. One of the following requests through INB does not require manual intervention. a) Account opening b) DD issue c) Cheque book issue d)a/c enquiry 3. Profile password is set by the --- a) customer b) branch c) CBD Belapur d) internet provider 4. Profile password is meant for --- a) Logging into internet b) enhanced security c) giving status symbol d) increasing speed 5. INB customers can further enhance their security while doing internet transaction through ---- a) SMS based password b) having 2 login passwords c) by going to internet kiosk d) by a secret question 6. Mode of delivery of user ID and password for internet banking can be a) through dispatch from the INB dept only b )through PPK directly to the customer only c) either through dispatch from INB dept or through PPK d) neither through dispatch from INB dept nor through PPK 7. What does PPK refer to? a) pre packed kit b) pre paid kit c) personal pack kit d) pre printed kit 8. Each packet of PPK has ----no of kits a) 100 b)50 c)150 d)200


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9.Each PPK has 10 digit number where the first 5 digits stand for the packet Serial number and the next 2 digits represent

Kit serial no b) circle code c) branch code d) account type code 10.Internet service provider for internet banking for SBI is a) M/s Zee technology b) M/s Microsoft c) M/s Satyam d) M/s Infosys 11. Internet banking site of SBI has been certified by a) Verisign b) Goodsign c)Satyam d)ISO 12.One of the following is not true about the security features built into SBI’s Internet Banking site a) It has 128 bit SSL encryption b) provides for multiple users and user level security banking c) HPIN based password d) It has metal detectors 13. Transfer of funds in sbionline can be done using a) RTGS only b)GRPT and RTGS c) NEFT ,RTGS and GRPT d)ECS,GRPT and NEFT 14.Internet Banking site of SBI is a) www.onlinesbi.com b) www.statebankofindia.com c) www.sbi.co.in d) www.sbi.org.in 15.PPK has to be claimed by the INB officer in a) SBITIMES b) onlinesbi c) B@ncs 24 d) Branch admin interface 16.One of the following functions in respect of internet banking are not Carried out at branch admin interface a)Reset of login and profile password b)Redispatch of id password c)reactivation of user id d)removal of posting restrictions


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17.Each transaction done through onlinesbi generates a -----digit number a)6 b)7 c)10 d)16 18.When a Username gets deactivated it can be reactivated in a)Branch admin interface b) online sbi c)B@ncs24 d) Sbitimes 19.The password of a user gets locked for a day on internet if entered wrong ------ times consecutively

a) 2 b) 4 c)5 d) 3 20.As per the bank’s single domain name policy branches/administrative units/ Application owners wanting to host their own banking site will register Their transactional site as subdomain of www.onlinesbi.com and their Informational site as subdomain of a) www.onlinesbi,co b)www.sbi.org.in

c)www.sbi.co.in d)www.sbiicm.in 21. The recently introduced simplified branch INB role holding for small branches pertains to branches a) With 3 officers b) With less than 3 officers c) does not depend upon the number of officers d) None of the above 22. Which of the following will not constitute a part of the arrangement in the recently introduced simplified branch INB role holding for small branches . a) INB Maker b) INB Authoriser c) INB officer d) None of the above

KEY INB General

1 2 3 4 5 6 7 8 c d a b a c d a 9 10 11 12 13 14 15 16 b c a d c a d d 17 18 19 20 21 c a d c b


455

CINB

1. Of the following types of forms used in CINB registration one of them is not matched properly.Which one is it ? a) C1 is used for registration of CINB customer b) C2 is used for registration of regulator c) C3 is used for registration of administrator d) C4 is used for registration of maker 2. Which of the following statement is true. i) Form B1 is used for advising the customer his registration ID ii) Form B2 is used for registration of Branch INB authorizer a) Only i) is true b) only ii) is true c ) Both i) and ii) are true d) neither i) nor ii) is true 3.One of the following types of products is not available to CINB customers a) Khata b) Vistaar c) Vyapaar d) Vistaar plus 4. In case of which of the following types of CINB products amount per transaction cannot exceed Rs 50.00 lacs a) Vyapaar b) Vistaar c) Khata Plus d) Khata 5. Which type of CINB facility provides for enquiry rights only on all accounts across branches a) Vyapaar b) Vistaar c) Khata Plus d) Khata 6.In which of the following types of CINB facility it is possible to do full range of online transactions for corporates maintaining a/cs at multiple branches a) Vyapaar b) Vistaar c) Khata Plus d) Khata 7.The type of CINB product that offers only enquiry rights at one branch only is

a) Vyapaar b) Vistaar c) Khata Plus d) Khata 8.The access channel that is set for a khata user in CBS is

a) 09 b) 04 c) 01 d)02


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9. A regulator’s role in CINB does not cover one of the following. a) Over all control of internet banking system b) Implementation of security features for whole corporate c) Participates in internet transactions d) He can define which user can do what 10.One of the following is not a type of user that can be created under CINB a) developer b) authoriser c) enquirer d) auditor 11.One of the following is not a feature of the facilitiles available under CINB a) e-payments/e-receipts to and from registered users b) Bulk upload facility c) No check on access control and access rights d) Multiple level controls 12. A super enquirer is one a) who has unlimited power of transaction b) who has unlimited right of enquiry for all accounts of the corporate across branches c) who has unlimited power to control other users d) who has unlimited right to set limits on transactions 13.One of the following functions can not be performed by the administrator

a) He can manage users b) He can modify access rights c) He can perform transactions d) He can reset profile/transaction password of users 14.One of the following is not true about the role of uploader

a)He participates in bulk upload of data as or salary payments etc b) He generates test file from the file structure set by regulator c) He approves the test file d) The setting up of uploader’s role is mandatory 15.One of the following is not true about the rules or operating instructions Set by the corporate a)They define the power of the executives of the corporate to authorize the online transaction requests on an a/c.


457

b)each of the INB Rule authorizer individually authorizes the rule formulated at the corporate end. c) INB rule authorizers approve the rules only if these are in keeping with the

Mandate or board resolution submitted by the corporate d) It is not possible to change the rules once approved even when the corporate submits a fresh resolution. 16.One of the following is not included in the role profile of INB officer a) obtains various forms from corporate customer for registration of CINB b)Creates regulator (for Vistar customer) c) authorizes various rules set by the corporate d)creates administrator for (Khata plus,Vistar and Vyapar customers ) 17.The CINB user/ users created at the branch level are a)Regulator only b)administrator only c)neither regulator nor administrator d) both regulator and administrator 18.The administrator of the corporate prints the following form for getting the PPKs of other corporate users issued from the branch a)form C1 b)form C7 c)form C6 d)form C8 19.The maximum amount of draft that can be issued per transaction in case of Vistaar is a)Rs1.00cr b)Rs5.00cr c)Rs2.00cr d)Rs10.00cr 20.The preprinted kits to the users in case on CINB customer are given through a) B@ncs24 b)Branch Admin Interface c)Onlinesbi d)Sbitimes 21. The facility through the Internet banking user makes payment after selecting the desired corp /Institution available under a link in the Internet banking website is a) e -collect b) i -collect c) i collection d) None of the above 22.While Creating a Regulator /Administrator in Vistaar /Vyapaar the registration of the mobile numbers of the functionaries is a) Mandatory b)Non Mandatory c) cannot be done d) None of the above


458

23. The E-Tax limit per transaction in the case of Vistaar is

a) Rs 500 crore b)Rs 50.00 lacs c) Rs 5.00 crores d) None of the above 24. The ‘mall on Mobile’ facilitywhich permits the booking of Railway tickets and purchases on mobile is called

a) Grand Mall b)Ambiece mall c) ngpay d) None of the above

KEY CINB

1 2 3 4 5 6 7 8

d c d a c b d a

9 10 11 12 13 14 15 16 c a c b c d d c 17 18 19 20 21 22 23 24 d b a b b a a c


459

D mat

1. ez-trade@sbi is a 3in 1 a/c because it provides an integrated platform of a) TDR a/c, demat a/c, and online trading a/c b) S/B / current a/c, demat a/c, and online trading a/c c) loan a/c , online trading a/c , and demat a/c d) PPF a/c, online trading a/c , and demat a/c 2.ez-trade@sbi is provided by SBI in association with a) Relianceinfocom, ICICI securities b) SBI Securities and NSDL c) Online SBI and Master securities ltd d) SBI Caps securities limited 3.A depository is an organization which holds

a) loan documents in electronic form b) cash c) securities in an electronic form d) gold certificates in electronic form

4. A DP i.e depository participant is an entity which a) acts as a agent of the bank and registered under companies act b) which acts as a agent of the Depository and is registered as such with SEBI c) which acts as a agent of the RBI and is registered under FEMA d) which acts as agent for financing and registered as such with SEBI 5. At present the 2 depositories are a) Integereated depository services limited and Reliance depository services limited b) Future depository services limited and Reliance depository services limited c) Combined depository services limited and Active depository services limited d) National securities depository limited and Central depository services limited 6.Maximum no of demat accounts that an investor can open with a DP is a)unlimited b) 1 c)2 d)5 7.Along with proof of address it is mandatory to give -----for opening a demat a/c

a) mobile number b) Pan card with photograph c) asset statement d) Passport


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8. Minimum balance of securities to be kept in demat a/c is a) 5 b) 3 c) Nil d)1 9. The a/c opened by DP is given a number BO ID which stands for a) Beneficary owner identification number b) bilateral ownership indentity number c) Balance outstanding indentity number d)Benefits outstanding identification number 10. One of the following is not true about Dmat a/c

a) In case of a joint a/c it cannot be operated on ’either or survivor ’basis as a bank a/c

b) It cannot be operated on Power of attorney basis c) Names cannot be added or deleted in a demat a/c d) Securities can be transferred to another account with another DP maintained in the same pattern 11. For delivery of shares an investor is given a DIS booklet where DIS stands for a) Demand instruction slip b) dedicated investment slip c) Delivery instruction slip d) dated investment slip 12. One of the following is not true in respect of DIS

a) If demat a/c is in joint name DIS can be signed by any of the account holders

b) DIS of another person should not be used as it will not be accepted c) It should specify the BO/client ID of the target a/c d) In case of exhaustion of DIS slips they can also be issued across counter to the investor for immediate use. 13. For doing DP related work bank has set up a special cell which is ---- a) LCPC b) CPC c) DPCPC d) DAC 14. ez instructions are meant to provide a) standing instructions to branches for transfer of funds b) instructions for issue of draft through onlineSBI c) online instructions for transfer of a/c d) for issue of delivery instructions and pledge instructions through onlineSBI


461

15. To convert shares in physical form to electronic form ,investor has to fill ------ type of form a) CDF b) DRF c)DTF d)CRF 16. DRF stands for a) Dealing request form b) Duplicate request form c) Data request form d) Demat request form 17. When the names on the physical certificate and in demat a/c are the same but the

sequence is different, then while applying for dematerialization the investor has to submit---- form

a) Transposition cum demat form b) transfer cum demat form c) transition cum demat form d) trading cum demat form 18. An investor can do any of the following in respect of his demat a/c except a) Freeze his a/c b) change signature in his a/c c) convert shares in electronic form into physical form

d) deposit all his securities whether in single or different names in a/c in single name only

19. ASBA facility through SBI online refers to a) A simple online application for IPOs b) An application where only a lien for the given amount is created in the account.Hence the customer continues to earn interest and his account will be debited only on allotment of the shares. c) None of the above

KEY D mat

1 2 3 4 5 6 7 8 b d c b d a b c 9 10 11 12 13 14 15 16 a b c a c d b d

17 18 19 a d b


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RTGS NEFT GRPYT 1.RTGS stands for a) Real trade gross settlement b) Real time gross settlement c) Real transaction gross settlement d) Real track gross settlement 2.One of the following is not true about RTGS a) It is electronic transfer between a/cs in different banks b) It is made secure with digital signature and public key infrastructure for encryption c) It is maintained and monitored by SBI d) Interbank fund transfer is online and realtime 3.Which of the following is true i) R-41 transaction type is meant for customer to customer transaction ii) R-42 transaction type is meant for interbank transactions only i) is true b) only ii) is true c) both i) and ii) are true d)neither i) nor ii) is true 4.Which of the following is true i) Minimum amount that can be remitted through RTGS in case of R41 transaction is Rs2.00lacs ii) Minimum amount that can be remitted through RTGS in case of R42 transaction is Re2.00

only i) is true b) only ii) is true c) neither i) nor ii) is true d) both i) and ii) are true

5. IFSC in respect of RTGS/NEFT stands for a) Indian financial system code b) international financial system code c) Indian financial sevices code d) international financial services code 6. UTR number refers to a) Universal transaction reference b) Unique transfer reference c) Universal transfer reach d) Unique transaction reference 7.Every RTGS message is assigned a UTR no comprising of ------characters a) 17 b) 11 c) 16 d) 15


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8. DAU, maintained at Payment systems group Global IT centre CBD Belapur, refers to a) Dedicated accounting unit b) Dealer account unit c) Distance account unit d) dependable accounting unit 9. NEFT stands for a) National Engineered financial transaction b) New electronic financial transaction c) National electronic fund transfer d) New electrical fund transfer 10. One of the following is not true about the features of NEFT a) Remittance can be in rounded figures only b) It operates on deferred net settlement basis where settlement is done in batches c) There is no stipulation of minimum or maximum amount to be sent through NEFT d) It can be used for only Indian rupee remittances among participating banks in the country. 11.IFSC code has ------no of characters a) 10 b)11 c) 16 d)15 12.Maximum amount that can be sent through RTGS and NEFT is a)Rs5.00lacs b) Rs10.00lacs c)no limit d)Rs15.00lacs

KEY

RTGS NEFT GRPYT

1 2 3 4 5 6 7 8 b c c d a d c a 9 10 11 12 c a b c


464

INFORMATION SECURITY ASSIGNMENT - 1

1. Who is responsible for security of Desktop/Laptop/Server

a) System Administrator b) User c) of Department d) Security Officer Head

2. If an user requires any change in hardware or software settings whom he/she

should contact

a) IT Head b) Head of Department c) System Administrato d) Supplier of HW/SW

3. If an user wants to connect modem to his/her machine to access external

network, whom shall he she approach for approval

a) Head of Department b) System Administrator c) IT-Networking department d) Information Security Department

4. To prevent unauthorized access while desktop is unattended, which measure is

most suitable

a) Shutdown the desktop b) Lock the keyboard/mouse c) Enable the screensaver with password d) Power off the monitor

5. What an user should do when auto virus scan is affecting system performance

a) Contact the System Administrator b) Stop/Disable the virus scan c) Call the HW/SW vendor d) Remove the antivirus from the system

6. How can a user protect sensitive data on laptop in the event of loss of laptop

a) By creating hidden files/folders b) By enabling Boot level power-on password c) By enabling screensaver d) By using encryption


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7. In the event of loss of laptop whom should be contacted immediately

a) Police station b) Controller & Information Security Department c) Insurance Company d) Bank’s Security Officer

8. An user should share password of his desktop with whom

a) Controller b) System administrator c) Colleagues d) None

9. A good password is

a) Name/short form of name/initials b) Names of family/friends/colleagues/institution c) Combination of alphabets and numbers d) Combination of alphabets, numbers and special characters

10. Which is a good practice

a) Changing passwords frequently b) Keeping a written password somewhere c) Entering password when colleague is watching d) Keeping simple words as passwords

11. If Internet is misused from an user’s desktop, who is responsible

a) The person who has misused b) The user whom the desktop belonged to c) The department where the desktop is located d) IT-Networking department

12. Which one is not suggested while enabling a browser

a) Set browser security setting to medium b) Configure browser to remember web application passwords c) Enabling ID displays in web applications d) Maintaining history of URLs


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13. If an users storage space is full in his/her mailbox, which one is not recommended

a) Delete old mails b) Download old mails in the machine c) Open a new mail account d) Request for increase in mailbox storage

14. A site address which starts with -------- is more secure a)https:// b) https:// c)htpps:// d)https:// 15. Which of the undermentioned is a good practice to prevent revelation of

sensitive information a) Reading confidential documents in public places b) Working on laptops in public places c) Not answering to queries over phone to unverified persons d) Providing information to vendors/suppliers

16. Who is supposed to be responsible for application security in all activities related

to design, development, deployment and support of an application

a) Development team b) Information Security Department c) Steering Committee d) Application owner

17. Application should ensure that all transactions with financial implication should

have

a) One person as the requestor and approver b) Separate requestor and approver c) Approval of Systems and Procedure Dept. d) Approval of Information Security Department

18. Application should have the provision for allocating access rights based on the

principle of

a) First come first serve b) Maker-checker c) Default d) Least privilege

19. An application need not display which information, on completion of a successful

logon

a) User-Id b) Date and time of the previous successful logon c) Details of any unsuccessful login attempts d) Name of the application


467

20. Who is responsible for selection of encryption technology for Data security

a) Head of department b) Head of IT department c) Information Security Department (ISD) d) Application owner in consultation with ISD

21. Internet access should be provided only for users

a) To send / receive mails b) With business needs c) To browse various sites d) To download files/data

22. The account and password for Internet access will be communicated to end user

by

a) Head of department b) IT-Networking department c) Information Security Department d) System Administrator

23. Internet connection is enabled on desktop, which is not connected to the LAN in

Branch. How should the data be transferred between the desktop and LAN

a) By connecting the desktop to the LAN b) By using a modem for dial-up connection to the LAN c) By using removable media like Floppy/CD d) None of the above

24. Who is authorized to block ports through firewall

a) IT-Networking dept. as advised by ISD b) ISD c) Service Provider d) System Administrator

25. Which device should be installed to monitor the traffic from external networks

a) Switch b) Router c) Firewall d) Intrusion Detection System


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ANSWERS INFORMATION SECURITY ASSIGNMENT - 1

Q. 1 2 3 4 5 6 7 8 9 10 Ans. b c c c a d b d d a Q. 11 12 13 14 15 16 17 18 19 20 Ans. b b c a c d b d d d

Q. 21 22 23 24 25 Ans. b b c a d


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INFORMATION SECURITY

ASSIGNMENT-2 1. What are the three most important things you can do to secure desktop PCs?

a) Turn on Automatic Updates b) Turn on Windows Firewall c) Install antivirus software d) Remove the hard drive f) a, c, and d g) a, b, and c h) b, c, and d i) a, b, and d

2. Which of the following is an example of a strong password?

a) Password b) J*p2le04>F c) Your real name, user name, or company name

3. True or false: If you have a firewall on your network you don't need to turn on

Windows Firewall. a) True b) False

4. How can you prevent intruders from accessing your wireless network?

a) Encrypt network traffic with WPA or WEP b) Restrict access to trusted MAC addresses c) Both

5. True of false: If you set your antivirus software to auto-update then you don't

need Windows Automatic Updates. a) True b) False

6. True or false: Small businesses are not targets for hackers.

a) True b) False


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7. What is "phishing?"

a) "Spoofed" e-mails and fraudulent websites designed to fool recipients into divulging personal financial data such as credit card numbers, account usernames and passwords b) A type of computer virus c) An example of a strong password d) None of the above

8. What product can be used to update all PCs on your network?

a) Software Update Services b) Internet Information Server c) Bluetooth Networking d) Microsoft Baseline Security Analyzer

9. What method(s) can be used to protect sensitive data from prying eyes?

a) Passwords b) File permissions c) Encryption d) All of the above

10. How often should you perform an incremental backup?

a) Daily b) Every other day c) Weekly d) Monthly

11. The way I operate my computer affects other people.

a) False: Nothing I do on my computer matters to anyone b) True: My computer may disrupt services, spread viruses, or be used to perform a computer crime.

12. What are the possible consequences of someone breaking into my computer?

a) I may have files deleted from my computer b) I may have personal communications exposed c) I may have my network connection cut off d) My monitor may shatter e) My computer may be used to commit a crime f) My computer may be used to adversely affect the operation of my neighbors' computers g) All of the above, h) a, b, c, e, and f i) a, b, d, and f


471

13. You just got a brand new computer and it has anti-virus software installed. Is it

safe to use on the Internet? a) Sure. They wouldn't sell me something unsafe. b) No. I need to make sure both my anti-virus software and operating software are up to date.

14. Why might someone break into my computer even though I have nothing of value

on it? a) Because someone doesn't like me b) To use it to perform a crime c) Random vandalism d) For fun e) To use it to distribute pornography, music, videos, and software. f) All of the above

15. Are you free to do whatever you want with your network-connected computer?

a) Yes, It’s my personal computer and I can do what I please. b) No. I have to be a responsible member of the networked community and am bound by the George Mason Responsible Use of Computing Policy. c) No. I have to be a responsible member of the networked community, which includes being aware of the Wireless Network Policy. d) Both b and c.

16. Which of the following are strong passwords:

a) Administrator b) Bob c) c0mputer d) %4Btv e) $ecurity f) $jelF2bb g) My dog's name

17. If you ever receive an unsolicited telephone call from someone claiming to need

your password, what would you do? a) Refuse and report immediately b) Write the password on a piece of paper, put it in an envelope and send it by mail c) Tell him/her the password and change it the following day d) Send him/her the password via email


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18. Which is the best way to protect the sensitive data in your computer when you go out for lunch? a) Turn the monitor off b) Activate the screen saver c) Lock your computer with password d) Close all programs

19. Of the following choices, which indicates when it is safe to open a file attached to

an e-mail? a) When you know the sender, the attachment is expected, and it is not unusual in any way. b) When the e-mail is only sent to you c) When the attachment is not an .exe or .com d) When you know the sender

20. Which of the following behaviors are considered inappropriate use?

a) Sending email messages to harass or intimidate people b) Sharing passwords c) Sharing or using unlicensed, copyrighted software or multimedia outside their fair use provisions d) Trying to infect people with viruses or scanning computers you don't own e) Eavesdropping on others' activities by examining their computers or by using technology to access third-party communications f) Operating a computer with out of date operating software g) All of the above

21. When connecting your computer to wireless network you should:

a) Feel secure enough to send sensitive and confidential data, such as your social security number, credit card information, password(s), or private conversations. b) Lose sleep wondering whether using wireless access will allow strangers to login to your computer and the data stored on your hard drive. c) Enjoy the freedom of connecting to the Internet without hassling with cables and/or concern that the service provider will be billing your account for this special service d) Encrypt the information that you are transmitting over the network to protect your data from being exposed to hackers. e) Both c and d.


473

ANSWERS

INFORMATION SECURITY ASSIGNMENT - 2 Q. 1 2 3 4 5 6 7 Ans. f b b c b b a Q. 8 9 10 11 12 13 14 Ans. a c a b h b f

Q. 15 16 17 18 19 20 21 Ans. d f a c a g e


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INFORMATION SECURITY ASSIGNMENT-3

SAY TRUE OR FALSE

1. Antivirus programs that do a scheduled scan once a day provide adequate protection from viruses.

2. If you don't open an infected email attachment and don't browse unknown websites, you'll never get a virus.

3. A software firewall provides adequate protection for a cable or DSL line.

4. New systems are generally up to date and reasonably safe to connect immediately to the Internet.

5. It's ok to leave your wireless network unencrypted as long as you have firewalls on all your computers.

6. There are many viruses that can't be cleaned by even the best antivirus programs.

7. You can always avoid fake websites by typing the address in (avoiding email links), and identify a secure connection by the "lock" symbol in your browser status bar.

8. Most cookies do not contain any personal information and are not nearly the privacy risk that many people believe.

9. Deleting files and then emptying the recycle bin makes it impossible for someone to recover the information in those files.

10.Teens suffer much higher rates of identity theft than adults.

11.Adware and Spyware not only compromise your privacy, they can also severely reduce the performance of your computer and cause numerous other problems.

12.Chat rooms and the Internet have become the primary way that sexual predators find victims today.


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KEYS TO INFORMATION SECURITY ASSIGNMENT-3

1. FALSE. You also need real time scanning: a critical feature that can prevent a major infection (and one missing from many free antivirus programs).

2. FALSE.. A Vulnerable system can become infected even if you don't open attachments or browse the web.

3. FALSE. Cable/DSL users should not rely on software firewalls. But the reasons are not technological!

4. FALSE. New systems are almost always vulnerable and typically need major updates before they should be connected to the Internet.

5. FALSE. Your router is at threat and anybody can do anything to it..

6. FALSE. Viruses can be virtually impossible to clean, and the damage irreperable short of reformatting and reinstalling your system software.

7. FALSE. Typing an address in manually (avoiding links in email messages) and using the lock symbol to identify a secure connection works - but only on a clean system. These cannot be trusted on a system infected by a virus or spyware.

8. FALSE. Cookies rarely contain personal information and are much less scary than people think.

9. FALSE. Deleting files and emptying the recycle bin does not really delete files.

10.FALSE FTC surveys suggest about 5% of adults suffer some form of identity theft each year. I've found about 30% of teens have suffered identity theft.

11.FALSE. Adware and spyware may severly reduce the performance of your computer.

12.FALSE Assaults due to meetings in chatrooms are relatively uncommon and represent a small percentage of attacks against young people.


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BPR ASSIGNMENT 1. The alternate delivery channels as proposed under BPR are …. a) ATMs, Call Centres, Internet Banking, Phone Banking & Home Banking b) ATMs, Internet Banking, Phone Banking & Home Banking c) ATMs, Internet Banking, Phone Banking e) ATMs, Credit cards, Internet Banking, Phone Banking & Home Banking 2. In order to face the competition and come up to the customers’ expections BPR

has been introduced. In fact BPR stands for : a) Basic Procedural Re-adjustment b) Business Process Re-engineering c) Best Possible Re-structuring d) Behaviour Processes redefined 3. The radical changes being introduced under BPR are expected to result in

significant improvements on multiple fronts. The Core Process Redesign under BPR would lead to :

a) Process of Redesigning bank’s logo b) Simplified processes for customer and staff c) Redesign the process of promotion d) a & b above 4. BPR has been introduced because of a) Environment has changed b) Customer Expectations c) Competitive Pressure d) Processes have remained the same over the years e) All of the above 5. Keeping in view the environmental changes, customer expectations, new

technologies and obsolete processes the key objectives of the BPR are

a) Enhanced customer service levels by shortest waiting times, shorter process times and officering wider range of channels to choose from b) Tangible improvement in bottom line through increase in revenues and through new sales units.

c) Reduction in cost by improved processes d) Reduce transaction processing errors and customer complaints e) All of the above 6. Introduction of alternate channels will lead to i) reduction in transaction costs ii)Availability to customers 24X7


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a) i) only b) ii) only c) both i) and ii) d) neither i) nor ii)

7. A large number of radical changes are being incorporated under BPR which will

lead to tangible improvements. One of the key improvements under BPR will be : a) Greater customer convenience & less pressure on the branches b) Providing relief to the staff due to shortage of staff c) It will be accompanied by Police Escort d) No escort is required 8. Out of the seven key initiatives being launched under BPR one of the key

initiatives is Database marketing, which means: a) Compilation of data about marketing strategies b) Effective targeting of potentially rewarding customers c) Collation of data about other banks d) None of the above 9. Full form of SSB in Core SSB model of branch is a) Self servicing branch b) Standard and service branch c) Sales and service branch d) Sale and Super branch 10. One of the following is not true about the functions performed by core

SSB

a) It accepts cheques for deposit b) It grants loans against fixed deposits c) It conducts pre-sanction in case of business loans d) It keeps articles in safe custody.

11. A large number of non customer facing actilvities are being simplified and moved

out the branches. One of the Non customer facing activities being moved out of the branches to the extent of 95% is :

a) Savings Account opening b) Cheque clearing c) Loan processing d) Draft Issuance 12. One of the key changes launched under BPR are central processing cells. The

objectives for creation of Central Processing Cells is

a) Skill pooling b) Standardization of process c) Automation d) All of the above


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13. Two other variants of a Core SSB branch under redesigned branches are a) Core SSB with Mass module and core SSB with special module b) Core SSB with Mass module and core SSB with affluent module c) Core SSB with C&I module and core SSB with special module d) Core SSB with Affluent module and core SSB with SME module 14. One of the following is not a key principle in branch redesigning under BPR a)Clear communication of role b)increased focus on sales c)Increasing working hours d) Non customer facing activities migrated out of core 15. Functions related to a/c opening carried out at Liability CPC does not include a) Scanning of signatures b) acceptance of cash c) completion of remaining a/c opening formalities d) printing and dispatch of welcome letters to customers 16. As per BPR, Document Archival Centres have been created which will function as a) Centralised Document Execution Centre b) Centralised Document Printing Centre c) Centralised Record Maintance cell d) Centralised Document Centre for closed accounts 17. The Key features of BPR are a)Branch redesign b)Alternate channels c)LCPC d)All of the above 18. Under BPR, relationship managers have been provided for a) Personal banking only b) Medium enterprises only c) both Personal banking and medium enterprises d) neither Personal banking nor medium enterprises 19. Under BPR Centralised processing cells are being established at various

centers. Accordingly, it has been decided that National Cash Monitoring Cells will be established at …….


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a) Mumbai b) All the metros c) New Delhi d) Nagpur 20. In SMECC work flow it is not possible to a) send back an application for correction b) do analysis of balance sheet c) reject a loan application d) tick documents from Checklist submitted 21. In the cases of branches linked to Centralised Clearing processing cells The instruments drawn on the branches are a) Paid at the branches b) paid at CCPCs c) can be either a or b

22. The 3 slits in the Drop box for deposit of instruments are color coded for easy identification.The different colours are

a) Red for instruments to be paid at the branches b) Blue for Local clearing cheques c) Yellow for outstation instruments d) all of the above 23. The Grahak Mitra has been introduced with the following objective a) He will provide first level assistance to customers visiting the Branch. b)He will provide• basic product information and brochures to customers coming for a general enquiry. c) He will help the customers not well-versed with alternate channels to use them. d) He will guide the customers with complex transaction needs to proper officer/counter e) All of the above 24 The purpose of setting up of CAC(Currency administration cell) is : a) To improve efficiency levels with respect to reporting and interactions with RBI. b) Arranging for transportation of cash with outsourced vendors or within SBI. c) To relieve the branch managers, cash officers and cashiers at the branch from time consuming remittance related activities. d) All of the above


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ANSWERS BPR ASSIGNMENT Q. 1 2 3 4 5 6 7 Ans. a b b e e c a Q. 8 9 10 11 12 13 14 Ans. b c c b d d c Q. 15 16 17 18 19 20 21 Ans. b c d c a b B Q. 22 23 24 Ans. d e d


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MUTUAL FUNDS ASSIGNMENT- 1

1. SBI Fund Management Pvt. Ltd. is a joint venture of SBI & world leading Fund

Management Company SGAM (Societe Generale Asset Management) in the ratio of ____ % and ____%.

a) 50 , 50 b) 40 , 60 c) 30 , 70 d) 63 , 37

2. All Mutual Funds must be registered with ______ who regulates Mutual Funds business in India.

a) RBI b) MF Regulatory Authority c) AMFI d) SEBI

3. ________sets ethical, commercial and professional standards for Mutual Funds.

a) RBI b) SBI zc) AMFI d) SEBI

4. Which of the following is not one of the categories of Mutual Fund ? a) Liquid Fund b) Debt Fund c) Multi Level Fund d) Equity Fund e) Sectoral Fund f) Balanced Fund

5. In an close ended Fund, Investor cannot ______units through Mutual Fund as these are listed in stock exchange.

a) book b) buy/redeem c) further invest d) choose

6. In an open ended Fund, Investor can sale/purchase to/from the Mutual Fund at all times at a price based on ___________ . a) Market price b) declared price c) Offer price d) Net Asset Value(NAV)

7. In the context of Mutual funds, a /an _______document is a prospectus in which complete details of new schemes are declared. a) issue b) offer c) public issue d) Initial issue


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8. Net Asset Value of a mutual fund represents:

a) Assets/ Total No. of units of the Fund b) Market value of securities / Total No. of units of the Fund c) Market value of Assets – Liabilities d) (Market value of Assets – Liabilities)/ Total No. of units of the Fund

9. The SBI Magnum Contra Fund has given a return of ……..% since it’s inception

. a) 16.65 b) 36.87 c) 25.35 d) 26.87

10. The asset allocation in SBI Magnum Contra Fund is ……….% in large caps . a) 40-50 b) 50-60 c) 30-40 d) 65-70

11. In SBI LIFE Maha Anand medical examination is compulsory for a person of …… years age . a) 30 b) not requried c) 40 d) 60

12. Which of the following fund does not fall under the category Liquid & Short term a) Magnum Insta cash fund, b) Magnum NRI c) Magnum Institutional Income Fund d) Magnum Mid Cap Fund

13. Which of the following fund does not fall under the category of Debt Fund?

a) Magnum Income Fund b) Magnum Gilt Fund c) Magnum Monthly Income d) Magnum Balanced Fund

14. Which of the following fund does not fall under the category of Equity ?

a) Magnum Index Fund b) Magnum Multiplier Plus c) Magnum Tax Gain Scheme d) Magnum Income Plus

15. Redemption/ Sale of mutual fund units would attract a Long term capital Gains Tax of ……… % if they are held for a period of more than one year.

a) 10, b) 20 c) no tax d) 15


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16. Magnum Gilt Fund makes its investments in ………….. securities

a) Large caps b) blue chip companies c) mid caps d)Govt securities issued by central/ state govts.

17. The Bench Mark for comparing the performance of Magnum Gilt Funds is …… a) BSE SENSEX b) NIFTY

c) MID CAP INDEX d) I- Sec , Li-BEX INDEX

Key to Mutual Funds Assignment - 1

Q 1 2 3 4 5 6 7 8 9

Ans d d c c b d b d d

Q 10 11 12 13 14 15 16 17

Ans d b d d d c d d


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MUTUAL FUNDS ASSIGNMENT- 2 1. Which of the following is not the object of AMFI?

a. To promote interest of mutual funds b. To create ethical practices amongst mutual funds c. To regulate norms governing mutual funds d. To increase awareness of mutual fund

2. Which of the following is not a criteria for a sponsor of a Mutual Fund?

a. Networth to be more than capital investment b. Sponsor should contribute 40% of net assets c. Sponsor should ensure that 20% of fund’s assets to be invested in sponsor’s company

3. The health of a Mutual Fund can be known from:

a. Offer document b. Annual / half-yearly report c. NAV d. Newspapers

4. In India, a mutual fund is constituted as:

a. Trust b. Investment company c. Company d. None of the above

5. Which of the following can an existing mutual fund investor sue?

a. The AMC b. Directors of the AMC c. The mutual fund/ trust d. The trustees

6. If a security is thinly traded, it implies that the security has not traded on any stock exchange for the last _____ days.

a. 40 b. 15 c. 30 d. 60 7. Diversified debt funds are most affected by: a. Reinvestment risk b. Liquidity risk c. Interest rate risk d. Default risk 8. The maximum load that can be charged by the Asset Management Company for

paying initial issue expenses is: a. 7% b. 6% c. 5% d. 8%


485

9. SEBI regulations for mutual funds came into force in: a. 1993 b. 1987 c. 1996 d. 1998 10. Which class of investors is not allowed to invest in Indian mutual fund?

a. Foreign national b. FII c. NRI d. Indian resident 11. Mutual Fund Investors can address their complaint except to: a. Consumer court b. SEBI c. AMFI d. Sponsor 12. Which of the following statements is false:

a. Gilt funds have the least credit risk among various types of funds b. Gilt funds NAV will not fluctuate irrespective of interest rate movements c. Gilt funds would not face the risk of default unless the Govt. defaults on its

payments d. Gilt funds are ideal for investors who look for highest safety of principal

amount

13. Mutual fund can borrow:

a. In order to meet redemption units/dividends or interest payouts b. For a maximum duration of 6 months c. Upto a maximum of 20% of the net assets d. All of the above

14. Initial issue expenses for an open end fund can be amortised over a period of : a. 10 years based of WNA b. 4 years c. 5 years d. 6 years 15. Which was the first diversified equity fund in India? a. Mastergain 92 b. MEP 91 c. Mastershare d. None of the above 16. Which was the first Indian offshore fund? a. India growth fund. b. India fund c. India infrastructure fund d. none of the above


486

17. Private sector funds were granted permission to enter the mutual fund industry in a. 1992 b. 1993 c. 1988 d. 1995 18. In the context of a mutual fund, a high portfolio turnover means:

a. the fund is very active in the market b. transaction costs are high c. a high risk is involved as per the investment objectives d. all of the above

19. The Mutual Fund Offer document as per trust deed is issued by: a. AMC b. Sponsors c. AMC in the name of the trustees d. Trustees

20. The maximum limit of inter-scheme investments by a fund is: a. 5% of the NAV of the transferring scheme b. 15% of the NAV of the receiving scheme c. 5% of the NAV of all schemes of the fund d. 15% of the NAV of all schemes of the fund

21. The first non-UTI mutual fund was:

a. SBI MF b. LIC MF c. Canbank MF d. Indian Bank MF

22. Under SEBI regulation, a sponsor of mutual fund

a) Must contribute at least 40 % of the net worth of the assets management company,

b) Must posses a sound track record of over 5 years, c) Must contribute at least 51 % of the net worth of the asset management

company, d) Both (a) & (b)

23. For evaluating funds, the preferred benchmark would be the:

a) BSE Sensex b) S&P CNX Nifty c) BSE 200 d) S&P CNX Sectoral Indices

24. Mutual funds can be broadly typecast on the basis of nature of investment into:

a) Equity, bond, & money market funds, b) Equity, bond, & load funds, c) Equity, load, & tax-exempt funds, d) Equity, open-ended, & closed-ended funds.


487

Key to Mutual Funds Assignment - 2

Q 1 2 3 4 5 6 7 8 9 10 11 12

Ans c c B a d c c b c a a b

Q 13 14 15 16 17 18 19 20 21 22 23 24

Ans d c C b b d a c a d d a


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MUTUAL FUNDS ASSIGNMENT- 3 1. A mutual fund’s NAV is not affected by:

a) Price of the unit quoted in the exchange b) Valuation of fund’s investments c) Sale of new units d) Redemption of unit

2. The mutual fund trust is governed by

a) India Trust Act only, b) Indian Trust Act & sometimes also by companies Act 1956, c) Companies Act only, d) Companies Act & sometimes Indian Trust Act.

3. Which of the following is of no relevance in evaluating a mutual fund's performance

a) The performance of the stock market as a whole b) The performance of other mutual funds c) The returns given by other comparable financial products d) The change in wholesale price index

4. Aggressive growth funds invest in

a) Less researched & speculative shares, b) Shares of blue chip companies that are recognized as market leaders, c) Shares of companies that produce defense-related equipments, d) Technology stocks.

5. Repurchase price of a mutual fund unit

a) Should be higher then 93 % of NAV in a closed-ended fund b) Should be higher than 95 % of NAV in a closed-ended fund c) Can be 96 % of NAV d) Can be 90 % of NAV

6. In the growth option offered by mutual funds, the number of units held by an

investor increases because of :

a) Growth in net asset value i.e. capital appreciation b) Reinvestment of dividend which is like compounding c) Interest received on the fund's assets d) None of the above


489

7. Index fund is expected to carry which of these risks?

a) Default risk, b) Sector specific risk, c) Share specific risk, d) Overall market risk.

8. A security is a “non-traded” security if it is not traded in the stock exchange for

a) 45 days prior to the date of valuation b) 60 days prior to the date of valuation c) 30 days prior to the date of valuation d) 06 months prior to the date of valuation

9. Assured return schemes:

a) Are equity funds, b) Do not carry any risk, c) Are funds where minimum returns are guaranteed by the sponsor, d) Are schemes where maximum returns are assured

10. Which of the following is right? A mutual fund may not:

a) Invest in other mutual fund b) Invest in mutual fund schemes floated by the same asset management

company c) Invest more than 5 % of NAV of the scheme in unrated debt instruments d) Invest in unlisted shares more than 10 % of NAV in a closed-ended fund

11. Which of the following is true?

a) Sector fund is less risky than index fund b) Index fund is more risky than underlying index c) Balanced fund is more risky than gilt fund d) Money market fund is more risky than balanced fund

12. Turnover rates would be most relevant to analyze the performance of :

a) Equity funds b) Growth funds c) Debt funds d) Value funds


490

13. Because of the entry/exit loads charged by the MFs, the return on investment earned by the unit-holders:

a) Increases b) Decreases c) Is unaffected d) Sometimes increases, sometimes decreases

14. An asset management company & its directors must ensure that the investment of

fund is in accordance with

a) Trust deed b) SEBI Regulations c) SEBI Regulations & the trust deed d) The need to furnish maximum returns of the unit-holders

15. The rate of interest paid by a company on debentures issued by it depends on:

a) The stock market situation b) SEBI guidelines c) The company's credit rating d) The amount of money being raised

16. A high turnover rate for a fund indicates: a) High transaction costs b) Greater efficiency

c) High returns to the investor d) A rising market

17. A sector fund is a: a) Low risk fund b) Moderate risk fund c) High risk fund d) Low-to-moderate risk fund

18. Which of the following transaction costs are not quantified in the offer document

a) Brokerage commissions b) Dealer spreads c) Custodian’s fees d) Registrar’s fees

19. Unit Trust Of India is a special mutual fund because

a) It was set up before SEBI was established b) It was set up under an act of a parliament & therefore enjoys special

status c) It is a public sector financial institution d) It is owned by RBI, which is not under SEBI jurisdiction.

20. As per SEBI, mutual funds can borrow for short term to the extent of

a) Total net assets b) 50% of net assets c) 25% of net assets d) 20% of net assets


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21. A bond with a coupon rate of 9 % when interest rates for similar maturities are 11 % will sell

a) Above par b) Below par c) At par d) At a price which is not related to interest rates for similar maturities

22. Dated securities are

a) Bond issued by corporate with a specific date for redemption, b) Treasury bills with a specific date for redemption, c) Government paper with maturities longer than one year, d) Securities, which have no, risk whatsoever.

Key to Mutual Funds Assignment- 3

Q 1 2 3 4 5 6 7 8 9 10 11

Ans a b d a c b d b c d c

Q 12 13 14 15 16 17 18 19 20 21 22

Ans a b c c a c b b d b c


492

SBI LIFE AND GENERAL INSURANCE

1) SBI General Insurance is a joint venture with which of the following?

a) IAG Australia b) Cardiff S A c) Sosciete General Asset Management d) None

2) SBI Life is a joint venture with which of the following?

a) IAG Australia b) Cardiff S A c) Sosciete General Asset Management d) None

3) What is %... of the share of SBI in the joint venture with Cardif S A..? a) 74 b) 76 c) 50 d)51

4) A person professionally trained in the mathematical and technical aspects of Life Insurance, Pensions and related fields is called as a …..

a) Actuary b) Fund Manager c) CIF d) Associate 5) The Key Man Insurance Policy is owned by and payable to …. a) The employee b) The employer c) Both jointly d) Nominee 6) What is meant by mortality in an insurance policy? a) The probability of disability of a life or a group of lives b) The probability of death of a life or a group of lives c) The probability of death and disability of a life or a group of lives d) The probability of death or disability of a life or a group of lives 7) What is meant by morbidity in an insurance policy? a) The probability of disability of a life or a group of lives b) The probability of death of a life or a group of lives c) The probability of death and disability of a life or a group of lives d) The probability of death or disability of a life or a group of lives


493

8) In which of the following policies, no surplus earnings are distributed by the co. to the policy holder &the premium is as closely as possible to the cost of insurance?

a) Non participating policies b) Salary saving insurance c) Single premium policy d) Term insurance

9) Which of the following policies provide life protection only for a certain

period of time without any returns if the insured survives the term?

a) Non participating policies b) Participating life insurance c) Single premium policy d) Term insurance

10) Which of the following policies may be kept in force for a person”s whole life and which pays a benefit upon his death whenever that be?

a) Endowment b) Annuity c) Whole life d) Money Back

11) Which is the new ULIP policy of SBI life, with a minimum annual Premium of Rs. 1.50 Lacs & minimum single premium of Rs. 2.00 Lacs? a) Smart Elite b) Smart Performer c) Unit plus Super d) Smart Scholar 12) Which is the new ULIP policy of SBI life, with the twin benefits, higher than the highest of the daily NAV Guarantee and the prospect of the market upside?

. a) Smart Elite b) Smart Performer

c) Unit plus Super d) Smart Scholar 13) What are the minimum & maximum ages at entry in “Unit plus Super?

a) 18 &65 years b) 7 &65 years c) 19 &65years d) 20 &65 years

14) What is the maximum age at maturity in “Unit Plus Super’ ? a)65 years b) 75 years

c)55 years d) 60 years

15) What is the maximum age at maturity in “Smart Elite?



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16) What is the maximum age at maturity in “Smart Performer?

a) 65 years b) 60 years

c) 55 years d) 75 years 17) Which group policy of SBI Life is meant for covering Housing loans, Vehicle

loans, Tractor loans& Personal loans? a) Dhana Raksha Plus b) Dhana Rasi c) Swarna Ganga d) Group Swadhan 18) Which is the SBI Life’s traditional non-participating pure term plan, with a

minimum sum assured of Rs. 25.00 Lac? a) Smart shield b) Saral shield c) Saral life d) Smart Elite 19) Which is the SBI Life’s traditional non-participating pure term plan, with minimum

& maximum sum assured of Rs. 7.50 Lac& 24.00 Lac? a) Smart shield b) Saral shield c) Saral life d) Smart Elite 20) In which plan, part of the sum assured is paid to the policy holder at regular

intervals? a) Joint life Annuity b) Annuity c) Whole life d) Money back

Answers SBI LIFE AND GENERAL INSURANCE

Q. 1 2 3 4 5 6 7 8 9 10

Ans. A C A A C B A A D B

Q. 11 12 13 14 15 16 17 18 19 20

Ans A C C D A D A A C D


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AWARENESS OF BANKING FINANCE & ECONOMY

ASSIGNMENT - 1 1. In which denomination of Currency notes RBI has proposed to issue polymer notes?

a) Rs.10/- b) Rs.5/- c) Rs.1/- d) Rs.2/- 2. -------------has been awarded the Best Bank of 2010 by the Business India

a) Bank of Baroda b) ICICI BANK c) SBI d) HDFC BANK 3. The Present National Security Adviser to the govt of India is a) Shri K.R Narayanan b) Shri K.P S Gill c) Shri Shiv Shankar Menon d) None of the above 4. As per the recommendation of the 13th Finance Commission, the States will be

entitled to a share of ______% in Central Tax Revenue. a. 32 b. 31.5 c. 30.5 d. 29.5 5. The tenure of the 13th Finance Commission is a. 2010-2015 b. 2011-2015 c. 2009-2014 d. 2008-2013 6. The 13th Finance Commission is headed by a. Shri K.R Narayanan b. Shri Manmohan singh c. Shri Pranab Mukherjee d. Shri Vijay Kelkar 7. BRIC economies refer to a. Brazil ,Russia ,India ,China b. Burma ,Russia ,India ,China c. Burma ,Russia ,India ,Chile d. Brazil ,Russia ,Indonesia ,China 8. Government of India has allowed Foreign Direct investment in Insurance Sector

upto : a. 39% b. 49% c. 59% d. 69%


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9. Why is ‘Circuit breaker’ used in share market? a. To retain foreign investors in market.

b. To check the illegal method used by companies to promote sale of their shares.

c. To check heavy fluctuation in share market. d. To check the excessive sale of any one share. 10. What is the proportion of the total oil consumption imported by India? a. 80% b. 70% c. 63% d. 54% 11. The headquarters of International Monetary Fund is located at : a. New York b. London c. Washington d. Geneva

12. Headquarters of World Trade Organisation (WTO) is located at: a. New York b. London c. Geneva d. Berlin 13. Headquarters of International Bank for Reconstruction and Development (IBRD)

is located at: a. New York b. London c. Geneva d. Washington,D.C.

14. The headquarter of ‘Asian Development Bank’ is situated at:

a. Kualalumpur b. Tokyo c. Seol d. Manila 15. Who is the present Chairman of SEBI ? a. Sh. G.N.Bajpai b. Sh. Rajendra Panwar c. Sh. M. Damodaran d. Sh. U.K Sinha 16. The headquarters of the European Central Bank (estd. 1998) is located at:

______. a. Berlin b. Lisbon c. London d. Frankfurt


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17. Where is the National Board of Trade located?

a. Indore b. Ahemdabad c. Mumbai d. None of the above.

18. Name the world’s largest provider of financial information: a. Wall Street Journal b. Press Trust of India c. Reuters Group plc. d. Associated Press of America 19. Office of the Intellectual property Appellate Board is being established in India at: a. New Delhi b. Mumbai c. Chennai d. Kolkata 20. Who is the present Chairman of IBA? a. Sh.Pratip Chaudhri b. Sh. M O Mallya c. Sh. M. Damodaran d. M.B.N. Rao

21. The The present Chairman of IBA belongs to a. SBI b. OBC c. ICICI Bank d. HDFC Bank 22. Who among the following, is the Chairman of Cabinet Committee on Economic

Affairs? a. Sh. Arjun Sen Gupta b. Sh.Manmohan Singh c. Sh. P. Chidambaram d. Sh. Montek Singh Ahluwalia 23. Who is the President of ‘World Bank’? a. James D. Wolfensohn b. Paul Wolfowitz c. Robert B. Zoellick d. Lee Sian Loo 24. The Managing Director of IMF who had to recently vacate office following

allegations of impropriety was a. James D. Wolfensohn b. Paul Wolfowitz c. Robert B. Zoellick d. Domonique strauss Kahn


498

KEY TO AWARENESS OF BANKING FINANCE & ECONOMY

ASSIGNMENT - 1

Q. 1 2 3 4 5 6 7 8 9 10 11 12 Ans. a a c a a d a b c b c c Q. 13 14 15 16 17 18 19 20 21 22 23 24 Ans d d d d a c c b b b C d


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ASSIGNMENT - 2

1. As per Budget proposals for the year 2011-12, the Income tax exemption limit has

been raised from Rs 160000.00 to a) Rs 180000.00 b) Rs 200000.00 c) Rs 170000.00 d) Rs 190000.00

2. As per Budget proposals for the year 2011-12, the Income tax exemption limit for

senior citizens has been raised to a) Rs 180000.00 b) Rs 250000.00 c) Rs 170000.00 d) Rs 190000.00 3. As per Budget proposals for the year 2011-12, the Income tax exemption limit for

Senior citizens above 80 years is a) Rs 180000.00 b) Rs 500000.00 c) Rs 170000.00 d) Rs 190000.00 4. As per Budget proposals for the year 2011-12, the defence allocation of Rs

164415 cr involves a hike of a) 11.00% b) 14.0% c) 14.5% d) 15.0% 5. The size of the black money in the Indian economy is estimated at

………………… per cent of GDP by the Central Statistical Organisation?

a) 40% of GDP

b) 34% of GDP c) 29% of GDP d) 45% of GDP


500

6. Objective of the Eleventh Five Year Plan is : a) Faster & More inclusive growth b) Growth with Financial inclusion c) Inclusive growth d) Wider employment opportunities 7. GDP growth rate for the Eleventh Five Year Plan has been fixed: a) 8% b) 9% c) 10% d) 11% 8. The Eleventh Five Year Plan pertains to the period a) 2007-12 b) 2010-15 c) 2004-09 d) None of the above 9. I.B.S.A. stands for: a) India, Brazil South Africa Trilateral Co-operation Forum b) India, Brazil, South Africa Agreement c) India, Britain, South Africa Agreement d) None of the above 10. In Eleventh Five Year Plan, the objective of agriculture Growth is: a) 4% b) 5% c) 6% d) 7% 11. Which International Orgainisation has committed to help India in

implementing ‘Mission Clean Ganga’ to clean the river Ganges to the

tune of USD 1 bn?

a) IMF b) Asian Development Bank c) World Bank

12. Who is the wealthiest person on earth as per the Forbes List of

Billionaires 2010?

a) Bill Gates of US b) Carlo Slim Helu of Mexico c) Warren Buffet of US d) Mukesh Ambani of India


501

13. SBI is planning for a tie up ……………………….. to enter into General

Insurance business.

a) Insurance Australia Group

b) AIG c) Societe General d) GE Capital Insurance

14. Which of the following is not true regarding personal taxation measures in the Union Budget for 2011-12? a) Exemption limit enhanced from Rs.1.60 lacs to Rs.1.80 lacs b) Citizens over 80 years of age to have exemption limit of Rs.5 lacs c) Senior citizens qualifying age reduced to 60 from 65 d) Women tax exemption limit enhanced to Rs.2.00 lacs 15. The size of the black money in the Indian economy is estimated at

………………… per cent of GDP by the Central Statistical Organisation?

e) 40% of GDP

b) 34% of GDP c) 29% of GDP d) 45% of GDP

16. The rate of Interest on Savings bank account is regulated by: a) By respective bank b) Indian Banks’ Association c) Reserve Bank of India d) None of the above 17. Foreign banks are at present required to make good the shortfall in achievement

of the stipulated targets/sub-target by depositing an amount equivalent to the shortfall with SIDBI for a period of :

a) 1 year b) 2 years c) 3 years d) 4 years. 18. The aggregate exposure of a bank/consolidated bank to the capital market in all

forms (both fund based and non-fund based) cannot exceed _____________% of its net worth as on March 31 of the previous year :

a) 20% b) 30% c) 40% d) 50%


502

19. Who is the present Telecom Minister?

a) A Raja b) Sachin Pilot c) Kapil Sibal d) Manmohan Singh 20. Ceiling of composite Foreign Direct Investment in the Telecom Sector has been

fixed at _______ %. a. 51% b. 61% c. 74% d. 100%


ASSIGNMENT - 2

Q. 1 2 3 4 5 6 7 8 9 10

Ans. d b b a b a c a a a

Q. 11 12 13 14 15 16 17 18 19 20

Ans c b b d a c c c c c


503

ASSIGNMENT - 3

1. Priority sector home loans limit has been proposed to be increased from Rs………. Lacs a) From Rs.20 lacs to Rs.30 lacs b) From Rs.20 lacs to Rs.25 lacs c) From Rs.20 lacs to Rs.28 lacs d) From Rs.25 lacs to Rs.30 lacs 2. Special Economic Zone (SEZ) Act was passed in the year: a) 2000 b) 2002 c) 2004 d) 2006 3. Disinvestment target for 2011-12 has been fixed at ……………………… a) Rs.500 billion b) Rs.200 billion c) Rs.400 billion

d) Rs.600 billion 4. RBI has recently approved merger of Bank of Rajasthan with…………………….

a) Axis Bank b) HDFC Bank c) ICICI Bank d) Punjab National Bank

5. International Financial Reporting Standards (IFRS) will come in to effect from a) March 2015 b) March 2016 c) April 2012 d) April 2013 6 Committee on Financial Inclusion was headed by……………………

a) A K Puri Committee b) Ashok Narain Committee c) Uday Parekh Committee d) Dr C Rangarajan


504

7. The committee to probe in to the irregularities of Common Wealth Games 2010 was headed by

a) V K Shunglu b) Pragat Singh c) Shantanu Chopra d) Ashok Narain

8. Which Indian company is placed at No.2 position in the list of world’s 10 biggest sustainable value creators prepared by Boston Consulting Group?

a) TATA Group b) ONGC c) SBI d) Reliance Industries

9.. “Aadhaar” is a) Unique Identification number (UID) b) A Central Government scheme to Provide Basic Amenities in Rural Area c) A Government of India scheme to Provide Basic Amenities in Rural and Semi- urban Area d) A Government of India scheme to Provide Basic Amenities for urban poor 10. Maha Ratna status has been given to which of the following PSUs? a) SBI b) NABARD c) SAIL d) MMTC 11. As per the Economic Survey 2010-11 the forex reserves of our country increased from USD 279.4 bn in Apr 2010 to USD ……………. in Dec 2010. a) USD 297.3 bn b) USD 300.10 bn c) USD 292.25 bn d) USD 295.00 bn .


505

12. What do you understand by the term ‘repo rate’? a) Rate at which RBI borrows from Banks b) Rate at which RBI lends to Banks c) Rate at which RBI invests in capital market d) Rate at which repository interest is maintained 13. The 16th Global Climate Summit held in Dec 2010 in ………………….. a) London UK b) Washington USA c) Cancun, Mexico d) Toronto Canada 14. The United Nations has decided to observe 2011 as ……………………….. a) International Year of Astronomy b) International Year of Chemistry c) International Year of Medicine d) International Year of Peace 15. With assets of USD 3.23 trillion ……………….. has become the world’s biggest Bank. a) Sumitomo Bank b) BNP Paribas c) American Express Bank d) Douche Bank 16. Which social networking site has become the most visited web site in the US for

the first time surpassing Google?

a) Twitter b) Facebook c) Ace Network d) Yahoo

17. Definition of Banking & other financial services is now expanded to include: a) Money transfer services. b) Services as bankers to an issue. c) Courier services sponsored by bank networks. d) a & b


506

18. The time limit for completion of assessment / reassessment of tax by Income Tax Department is _____________ .

a) Reduced to three months. b) Increased by three months. c) Now removed altogether. d) Three months for assessments & four months for reassessment. 19. RBI has recently set up a panel headed by ………………………….. to look into

the customer service of Banks .

a) C Rangarajan b) M Damodaran c) Bimal Jalan d) A C Sharma

20. Shri.Anand Pai, who passed away recently, fondly known as Uncle Pai is the founder of a) Amar Chitra Katha & Tinkle b) Why? What? & How? c) Fairy Tales & Chithra Katha d) Champak


ASSIGNMENT - 3

Q. 1 2 3 4 5 6 7 8 9 10

Ans. b c c c d d a d a c

Q. 11 12 13 14 15 16 17 18 19 20

Ans a b c b b b d a b a


507

ASSIGNMENT - 4

1 Retail investor can now invest through the initial public offer up to Rs. a) 100000 b)150000 c) 200000 d) 250000

2. SEVERSTAL is the mining giant of which country

a) Germany b) China c) USA d) Rusia

3. SBI is planning to open another ------------ branches abroad

a) 10 b) 15 c) 20 d) 30

4. The present SLR ………%

a) 21% b) 22% c) 24% d) 25%

5. Which state is the first state to pass a law for the regulation of MFI s? a) UP b) AP c) MP d) HP

6. Idea Cellular , the Cell phone company has been appointed as Business Correspondent by which Bank?

a) HDFC b) ICICI Bank c) Union Bank d) Axis Bank

7. Stimulus package is announced when there is?

a) Inflation b) Stagflation c) Boom d) Recession

8. Government of India ,acting tough on various telcom operator has imposed Fine to a tune of Rs ----------- crores for non-compliance of subscriber verifaction Process.

a) Rs 600 b) Rs 800 c) Rs 500 d) Rs 700


508

9. The 20Th edition of international World Web Conference held on 28Th March 2011 at.

a) Hyderabad b) Bengaluru c) Pune d) Delhi

10 Finance Minister of the year for Asea award has been conferred on

a) Thomas Isaac b) Brett Azuma c) Manish d) Pranab Mukerjee

11 Foreign nation can now remit ----% of their salary earned in India to their country

a) 100% b) 75%

c) 50% d) 25%

12. The GDP of the country registered a growth of …….% during 2009-2010?

a) 7% b) 7.5% c) 8% d) 8.25%

13The per capita Income of country is ……..Rs.

a) 54527 b) 55687 c) 58987 d) 61258

14.The size of the economy is projected at ------ crores

a) 7256571 b) 7555870 c) 7255870 d) 7758780

15. The out put of pulses & grains for 2010-2011 stood at ----- million tones

a) 175 b) 200 c) 235.8 d) 244.7

16.Jalan committee report is about a) banks b) Stock Exchanges c) Financial Institutions d) Education


509

17. The union Cabinet has approved a Bill which seeks to increase the Authorised capital of SBI to Rs ------------- crores

a) Rs 5000 b) Rs 8000 c) Rs 6000 d) Rs 10000

18.The current account deficit o f the country as at September ,2010 in Billion is

a) 30.23 b) 32.5 c) 34.9 d) 36.5

19. Y.H.Malegoan committee was appointed to study the issues & concerns of

a) Micro Finance b) SME c) Agriculture d) Trade

20 AT what rate MAT is charged?

a) 10% b) 15% c) 18.5% d) 20.5%

21 Over all coropate tax proposed in India is ……%

a) 20% b) 22% c) 25% d) 30%

22 The Direct Tax Code is expected to become law effective form……

a) 2011 b) 2012 c) 2013 d) 2014

23 Which of the following have been awarded the Navratna Status recently

a) RINL b) ONGC c) SAIL d) NTPC

24 Banks in India have switched to Base Rate System from ……

a) Cash Reserve Ratio b) Statutory c) Bank Rate d) Benchmark Prime Lending Rate

25 Who is the president of G-20?

a) Obama b) Man Mohan Singh c) David Cameroon d) Nicolas Sarkozy


510


ASSIGNMENT - 4

Q. 1 2 3 4 5 6 7 8 9 10

Ans. C D D C B D D D A D

Q. 11 12 13 14 15 16 17 18 19 20

Ans A C A A D B A C A C

Q. 21 22 23 24 25

Ans D B A D D


511

ASSIGNMENT NO 5. 1. Receipent of “ENTREPRENEUR EXTRAORDINAIRE” life time achievement award in 2009 is. a) Sri O.P.Bhat b) Sri Mukesh Ambani c) Sri Azim Prem Ji d) Sri Ratan Tata

2. The cenetral bank of China is called

a) Bank of china b) Peoples’ bank of china c) HSBC d) Shanghai Bank

3. India travel card has been introduced by

a) Axis Bank b) Syandicate bank c) ICICI d) Indian Bank

4. What is the rate of interest subvention proposed in 2011-2012 Budget to futher incentivise prompt repayment by farmers?

a) 1% b) 2% c) 3% d) 4%

5. Infrastructure Bonds have a lock in period of -----years

a) 5 b) 10 c) 15 d) 7 6. Mini Navratna have a autonomy up to Rs.

a) 500 b) 600 c) 700 d) 800

7. What is the maximum interest paid on infrastructure bonds?

a) 8.5% b) 8.75% c) 9.255 d) 9.755

8. Which Indian banks are treated as Foreign entities?

a) Axis Bank & HDFC b) ICICI & HDFC c) City Bank & HSBC d) PNB & ICICI


512

9. What is the dis-investment target of the government during 2010-11 in Crore

a) 20000 b) 40000 c) 50000 d) 60000

10. Which is the second largest commercial Bank in private sector in India

a) ICICI b) HDFC c) AXIS bank d) Bank of Rajasthan

11 Which bank has merged with ICICI last year .

a) Bank of Maharastra b) Bank of Rajasthan

c) Bank of Maholi d) Bank of Madhurai

12. NABARD was formed in the year ……

a) 1980 b) 1981 c) 1982 d) 1983

13. How many listed company are there in the country . a) 2500 b) 3000 c) 3500 d) 4500

14. Berclays Bank belongs to

a) UK b) Germany c) USA d) France

15. J.P.Morgan Chase Bank is from

a) Germany b) UK c) USA d) France

16. The name of ABN Amro Bank N.V has been changed to

a) The Royal banks of Scotlad b) The Royal Bank of Ireland N.v N.V. c) The ABN ltd d) The ABN & Scotland

17. The Currencyof S.korea

a) Yuan b) Dinar c) WON d) Dollar


513

18. Which is the largest Micro Finance Company in the country

a) Share b) Spurthi c) Spandana d) Swayam Krushi

19. The minimum application amount for retail investors in IP is Rs.

a) 10000 b) 15000 c) 20000 d) 25000

20 To be listed in the stock exchange, the minimum public holding of at least ----%

a) 10% b) 15% c) 20% d) 25%

21 Wal Mart is a Multi brand retail of …… in India

a) UK b) USA c) France d) Germany 22 Banks are mandated not to accept collateral security in the case of loans

Up to --------------- extended to units in the MSE sector a) Rs 10 lakh b) Rs 15 lakh c) Rs 5 lakh d) Rs 7 lakh

23 Who is the present Chairmen of SEBI

a) U.K.Sinha b) P.A.Nayer c) Bijoy Ghosh d) Nalin Mehta

24 SIP in gold has been introduced by -------- Mutual Fund

a) SBI b) LIC c) ICICI d) Reliance

25 PPF Schemes offer a rate of interesr of ------% p.a

a) 8 b) 8.5 c) 9 d) 9.5


514


ASSIGNMENT - 5

Q. 1 2 3 4 5 6 7 8 9 10

Ans. D B A C A A D B B B

Q. 11 12 13 14 15 16 17 18 19 20

Ans B C D A C A C A A D

Q. 21 22 23 24 25

Ans B A A D A


515

Assignment no 6 1. Who is the governor of Bank of England? a) Marc Listosella b) Dieter Zetsche c) Mervyn King d) Raymond Davis

2. SBI Bonds got a rating of “AAA” by CRISIL & CARE which indicate highest

a) Liquidity b) Safety c) Return d) Solvency

3. The budget allocation for MGNREG during the current fiscal 2010-11 in crores

a) 30100 b) 40100 c) 50100 d) 55100

4. Goods & Services tax will be effective from 1st April---------

a) 2010 b) 2011 c) 2012 d) 2013

5. CMD of Union Bank of India a) M.V.Nair b) Sasi Mukund c) E.E.Badshaw d) Albert Tauro

6. ANZ Bank pertain to which countries?

a) England & USA b) Australia & Newzeland c) Australia & Netherlands d) Australia & Nizeria

7. U.K.Sinha who has been appointed as chairman of SEBI was formerly Chairman & Managing director of

a) Kotak securities ltd b) Mahindra Sathyam c) UTI d) HDFC

8. G.D.P of India for 2009-10 has grown at …….%

a) 7.2% b) 7.5% c) 7.75% d) 8%

9. Carbon credits are awarded to countries or groups that have reduced their

a) CO2 b) Green house gases c) Advances d) SDRs


516

10. Present limit on FDI in Insurance Sector is------%

a) 15 b) 18 c) 22 d) 26

11 Large NBFCs which are taking deposits from the public have to maintain higher CAR of-----%

a) 10 b) 11

c) 12 d) 13

12. At present finance companies are required to maintain a CAR of----%

a) 10 b) 11 c) 12 d) 13

13. Banking for all is the tag line of ---- Bank

a) SBI b) ICICI c) IDBI d) Indian Bank 14. Who is the chairman of the parliamentary standing committee on finance?

a) Paranb Mukerjee b) Yashwant Sinha c) L.K.Advani d) Shusma sinha

15. The famous Hyundai and Samsung names are ----- firms

a) Japan b) South Korea c) China d) Singapore 16. The bond issue(Feb 2011) of the SBI was for Rs.------crore from the retail investors a)1000 b)2000 c)2500 d)3000 17. The financial inclusion target has to be met by banks by a) 2011 b)2012 c)2013 d)2014

18. The S & P 500, the bench mark measure of----- shares a) India b) Europe c) USA d) U.K


517

19.Tier-1 Capital is the core measure of a bank’s----- strength

a) Financial b) Liquidity c) Solvency d) Profitability

20. Minimum capital adequacy ratio (CAR) of the banks should be ---- % with a Tier-1 CAR of at least 6%. a) 8 b) 9 c) 10 d) 11 21. Bank on Bike service was launched on a pilot basis in --- district of A.P a) Medak b) Rangareddy c) Nalgonda d) Mahabubnagar 22. SONAGHAR is a a) Credit card outlet b) Housing loan outlet c) car loan outlet d) gold banking outlet 23. Who among the following industrialists pledged a whopping Rs.1540 crores to education foundation a) Grandhi Mallikharjuna Rao b) Anil Ambani c) Azim Premji d) Ratan Tata 24. METAGRID is the software of a) Credit card b) Mobile Banking c) Insurance d) Gold Banking 25. State Bank freedom is ----------- a) Home loan product b) Personal loan c) Mobile Banking Service d) Debit Card

26. In it’s latest Credit Policy announcement in June 2011, the RBI has raised the policy rates for the 10th time in 15 months .The repo rate has been hiked by ….. Basis points and at present is ……..%

a) 25, 7.25 b) 25, 7.50

c) 25, 7.75 d) 25, 7.00


518

27. The Reverse repo rate has been hiked by …. Basis points and the present rate is …. %

a) 25, 6.00 b) 25, 6.25 c) 25, 6.50 d) 25, 6.75

28. The rate for Marginal Standing facility at present is ……. %.

a) 8.50 b) 8.25

c) 8.75 d) 8.00


ASSIGNMENT - 6

Q. 1 2 3 4 5 6 7 8 9 10

Ans. C B B C A B C D B D

Q. 11 12 13 14 15 16 17 18 19 20

Ans D C C B B B B C A B

Q. 21 22 23 24 25 26 27 28

Ans A D A D C b c a


519

ASSIGNMENT-7 1. Call Money funds are lent with a maturity of: a. One day to three days b. One day to two days c. One day to a fortnight d. One day to seven days 2. Under Notice Money Market funds are transacted for a period of :___ a. One day to three days b. One day to fifteen days c. Two days to fourteen days d. One day to seven days 3. Maximum interest rate which can be allowed in call money market is: a. 5% b. 7.5% c. 10% d. no ceiling 4. In Call Money market, borrowings by a scheduled commercial bank should not

exceed: ____________.

a. 100% of owned funds b. 2% of aggregate deposits as at end of previous financial year c. higher of ‘a or b’ d. ‘a or b’ whichever is less.

5. In Call Money market, lending of scheduled commercial banks should not

exceed _______ % of their owned funds on a fortnightly average basis. a. 20 b. 25 c. 30 d. 40 6. NBFCs have to be registeed with ----------- a)Nabard b)Sebi c)Ministry of finance d)RBI 7. For certificate of registration minimum net owned funds for new NBFCs should be

Rs------ a. 1cr b. 2cr c. 3cr d. 5.00lacs 8. Recently, SBI has opened two call centres at Gurgaon and Chennai to deal with a.NPAs and Special Mention accounts b. Customer grievances c. ATM / Mobile / internet banking related queries d.Queries related to P segment loans


520

9. ATMS linked to the National Financial Switch (NFS) network are managed by _____.

a. Reserve Bank of India (RBI) b. National Payments Corporation of India (NPCI) c. IDRBT d.NCR

10. A special campaign for financial inclusion to bring banking to the masses launched by the Government of India is ______. a. Swavlamban b. Aadhar c.Swabhiman d.Atam Samaan 11 A High powered committee constituted by the RBI on the required changes in existing policy framework and prevalent practices of customer service in banks was headed by ________.

a. O.P. Bhatt b. M. Damodaran c. Bimal Jalan d.P.B.Shetty

12. Provision relating to Bank Rate is contained in:

a. Sec 42 of RBI Act b. Sec 49 of RBI Act c. Sec 42 of Banking Regulation Act d. None of the above

13. Cash Reserve Ratio is maintained under the provisions of: ____________. a. Section 49 of RBI Act b. Section 24 of Banking Reg. Act c. Section 42(1) of RBI Act d. Section 24(2) of Banking Reg.Act 14. SLR is maintained by scheduled commercial banks under Section _________ .

a. 42(1) of RBI Act. b. 42 of Banking Reg. Act c. 49 of RBI Act. d. 24(2A) of Banking Reg. Act


521

15. Twelfth five year plan starts from _____. a.2011-12 b. 2013-14 c. 2012-13 d. 2014-15 16. CRR balance is maintained by banks with RBI daily on the basis of:______.

a. Average balance on a fortnightly basis b. Daily minimum Balance c. Monthly average balance d. Average weekly balance

17. To streamline various ‘Green Banking’ initiatives, our Bank has set up ‘_____’ at Credit Policy & Procedures Department, Corporate Centre, Mumbai. a. Eco-friendly Charter b. Green banking cell c. Environment Hub of SBI d.Financial inclusion cell 18. Recently a self-service banking centre has been opened by our Bank to increase customer convenience and provide 24/7 access to banking in _____ a. Hyderabad b. Pune c. Banagalore d.Mumbai

19. Which amongst the following taxes is not imposed by Central Government :

a) Corporate Tax b) Tax on Income other than Agril. c) Custom duty d) Land duties

20. . Who is our Technology Service Provider for processing of Merchant Acquiring Business Transactions?

a. PRIZM Payment Services Private Limited (PPSPL) .b. c-Edge Technologies c. SBI Cards Payments Ltd

d.New age technology


522


ASSIGNMENT - 7

Q. 1 2 3 4 5 6 7 8 9 10

Ans. c c d c b d c a b c

Q. 11 12 13 14 15 16 17 18 19 20

Ans b b c d c a c a d a


523

ASSIGNMENT - 8

1. To prevent frauds in loan cases on the same immovable property, the Government has proposed in budget 2011-12, to set up _______ under the SARFAESI Act, 2002. a. Fraud Monitoring Cell b. Housing Ombudsman Scheme c.Central electronic registry d.trust monitoring cell 2. SBI won _________ Award under the IBA Banking Technology Awards 2010.

a. Best Risk Management b. Best Customer initiative c. Best Mobile Banking

d. Best internet banking 3. There are certain financial contracts outlining an exchange of payments linked to

the performance of a specified underlying credit sensitive asset or liability. These are known as: a. Derivatives b. Securitization c. Leasing d. Factoring

4. Which of the following is not a term, which is used in the context of Asset Liability

Management? a. Maturity Buckets b. Capital Fund c. Residual Maturity d. Interest rate risk 5. Government of India has decided to roll out Direct Tax Code wef _____.

a. April 2012 b. January 2012

c.April 2011 d. July 2011

6. Borrowing by banks from other banks / FI s in the call money market beyond 14

days is classified as: a. Call Money b. Medium Term Borrowing c. Inter-Bank Deposit d. None of these


524

7. Which among the following represents the basic nature as an instrument for a commercial paper issued by a company?

a. a demand loan agreement b. a cash credit agreement c. a bill of exchange d. a Usance promissory note 8. What is the minimum denomination amount for a commercial paper? a. 5 lac b. 10 lac C. 25 lac d. none of the above 9. To cover home loan borrowers, a new product launched by SBI Life in place of

Dhanaraksha Plus is ______ a. SBI Home Suraksha b.SBI life-Rin raksha c. SBI Life Home Suraksha d. SBI life Puran suraksha 10. Who among the following cannot issue a commercial paper? a. Companies b. All India Financial Institutions c. Primary dealers d. Commercial Banks 11. The Tangible Net Worth of a company (as per the latest audited balance sheet),

for being eligible to issue Commercial Paper, should not be less than: a. Rs. 1 crore b. Rs. 3 crore c. Rs. 4 crore d. Rs. 5 crore 12. A “Centre for Advanced Quantitative Finance” for imparting training on

quantitative finance for handling risks has been established in our Bank at ______.

a. State Bank Foundation Institute, Indore b. State Bank Academy, Gurgaon c. SBIICM d. State Bank Staff college ,Hyderabad 13. Commercial Paper can be issued for a minimum period of:_____________. a. 7 days b. 15 days b. one month d. 3 months


525

14. Commercial Paper can be issued for a maximum period of: a. 12 months b. 6 months b. 3 months d. 3 years 15. A Certificate of Deposit can be issued by a Scheduled Commercial Bank for a

minimum period of : ___________. a. 3 months b. one month c. 15 days d. 7 days 16. A certificate of deposit can be issued by a Scheduled Commercial Bank for a

maximum period of: _________. a. 3 months b. 6 months c. 3 years d. 12 months 17. A Certificate of Deposit is issued by a bank at: ______________. a. maturity value of the certificate b. face value c. discount to the face value d. premium to face value 18. As per Budget 2011-12, Housing Loans up to Rs. _______ will be categorised

under priority sector.

a.20 Lacs b. 25lacs c.30 Lacs

d.50lacs 19. The minimum amount of a certificate of deposit can be :_________. a. Rs.5 lac b. Rs.10 lac c. Rs.100 lac d. Rs. 1 lac 20. In case of maturity day of a CD being a holiday, its payment is required to be

made on: a. Succeeding day b. Preceding Day c. Preceding Business day d. Succeeding Business day


526


ASSIGNMENT - 8

Q. 1 2 3 4 5 6 7 8 9 10

Ans. c b a b a c d a b d

Q. 11 12 13 14 15 16 17 18 19 20

Ans c d a a d d c b d c


527

ASSIGNMENT-9

1. The definition of Net Bank Credit (NBC) is:- a. NBC = Total advances – Refinance obtained from SIDBI/NABARD. b. NBC = Total advances – Provisions made for NPAs

c. NBC = Total advances – Claimed lodged with DI & CGC

d. NBC = Total advances – Advances given against FCNR/FCNB/NRI deposits 2. Which of the following cannot be called a debt instrument as referred in financial

transaction?

a. certificate of deposit b. bond c. stock d. commercial paper

3. When the receivables of various loans and obligations are put together and

distributed or liquidated to various investors having liquid funds, the process is called:

a. leasing b. factoring c. securitization d. liquidation 4. VSAT based communication system which is used for financial transactions

between banks, INFINET stands for: a. Indian Financial Network b. Internet Financial Network c. Inland Financial Network d. International Financial Network 5. In the context of Capital Adequacy Ratio, BASEL–I, the subordinated debt is a

component of: ______________ . a. Tier I capital fund b. Tier II capital fund c. Tier III capital fund d. b and c 6.. Under the capital adequacy ratio requirements, the Tier II capital shall not exceed

______% of Tier-I capital. a. 25% b. 50% c. 75% d. 100%


528

7. Who is to issue a registration certificate to set up Asset Reconstruction Company?

a. Registrar of Companies b. SEBI c. RBI d. IRDA 8. Government of India issues treasury bills for a maturity period of ____________. a. 14 days and 91 days b. 91 days and 182 days c. 14 days and 182 days d. 91 days and 364 days 9. Which of the following committees has given its recommendations for financial

inclusion a)Kelkar committee b)Rangarajan Committee c)Rakesh mohan committee d)Sinha committee 10. Negotiated Dealing System relates to: a. Trading at stock markets b. Trading in Govt. Securities c. Settlement of security dealings d. a and b 11. Treasury Bills are:___________ .

a. Negotiable Instruments being Usance Promissory Notes

b. Non-negotiable Instrument c. Quasi Negotiable Instruments d. Not Transferable Instruments.

12. When an existing non-profit organization is converted into a for-profit company,

the process is called: a. re-mutualisation b. de-mutualisation c. de-materialization d. re-materialization 13. Rolling settlement is the system relating to:

a. Payment of Govt. Securities b. Trading at Stock Exchanges c. Settlement of dues by Borrowers In banks d. none of the above

14. The term ‘Green Field Projects’ in the context of project financing means

a. Projects installed in Green Field b. Project relating to agro-based activities c. Project financed by way of agricultural resources d. New projects, which have to be started from scratch including the provision

for infrastructure


529

15. The term ‘Brown Projects’ means:

a. Projects in Towns & Cities b. Projects relating to activities other than agriculture c. Projects aiming at modernization, diversification, expansion d. Projects involving high capital input

16. RBI’s model for rating of Indian banks is known as: a. CAMELS b. CAMEL c. CACS d. RFIA 17. As per RBI directives, the banks are required to create a reserve in respect of

their investments in securities under SLR or otherwise, which is known as: a. Investment Fluctuation Reserve b. Investment Depreciation Reserve c. Investment Reserve d. Investment Provision Reserve 18. Investment Fluctuation Reserve is part of:______________.

a. Assets of Balance Sheet b. Paid up Capital c. Tier II of Capital Fund d. Reserve under Tier I of Capital Fund

19. The trade organization established for facilitating international trade in South

Asian countries, is known as:__________. a. SAARC Trade Agreement b. SAFTA c. DAKSHESH d. Singapore Agreement 20 What does the term ‘Over geared Company’ mean?

a. Company doing extremely well b. Company deeply in debt b. Company running satisfactorily d. Company doing over trading


ASSIGNMENT 9

Q. 1 2 3 4 5 6 7 8 9 10

Ans. d c c a b d c d b b

Q. 11 12 13 14 15 16 17 18 19 20

Ans a b b d c a a c b b


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AWARENESS OF BANKING FINANCE & ECONOMY

ASSIGNMENT - 10 1. State Bank Leadership Institute has been set up in

a) Bhopal b) Indore c) Jaipur

2. Under Financial all villages with a population of 2000 have to be covered by

banking services by the end of financial year a) 2013 b)2012 c)2015 3. .Financial sector legislative reforms commission is headed by

a) D.Subarao b)Syamal Banerjee c)B.N. Srikrishna

4. The new chairman of IBA is a) D. B.Bhalla b)D.D. Mallaya c)V.K. Kohli 5. .------- and SBI have formed a joint venture with an investment of Rs100cr to reach out to unbanked areas. a)Airtel b)BSNL c)Reliance

6. First Bank in the country working as Registrar of UIDAI----

a)RBI b)PNB c)SBI

7. Ceiling amount for referring cases for compromise settlement of dues of banks using LokAdalat has been increased from Rs10.00lacs to ------- a)Rs 15.00lacs b)Rs 20.00lacs c)Rs30.00lacs 8. SBIs first Ultra HNI branch opened in---------- a)Mumbai b)Calcutta c) Hyderabad 9. . IFRS stands for -------------- a)Indian Financial reporting standards b)International Financial reporting standards c)Indian Fiscal reporting standards d)International Fiscal reporting standards


531

10.The new name for IFRS in India is a)IndAS b)INFS c)INdRS d)InaS 11.SBI’s recently opened ATM in Nathu la pass is in ------circle a)Bengal b)Chandigarh c)North East 12.SBI has recently tied up with Reliance Communication for a) Internet services b) mobile banking c)telephone for employees 13.SEBI has recently made ASBA compulsory for which class of customers a) all individuals b)all non retail investors c) all corporates 14.Which of this is not a core sector a)cement b)finished steel c)pharmaceutical 15. SBI does not have 100% stake in which of its subsidiaries a)State Bank of Mysore b)State Bank of Hyderabad c) State Bank of Patiala


ASSIGNMENT - 10

1 c 6 c 11 a 2 b 7 b 12 b 3 c 8 c 13 c 4 b 9 b 14 c 5 a 10 a 15 a

Promotion Book 2011

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