1. what is true regarding insurance for cash/ in cash...

1. What is true regarding Insurance for CASH/ in Cash Remittance?

a) All cash remittances in transit are covered under the Blanket Insurance Policy obtained by the individual Banks

b) It must be ensured that the maximum limit laid down there in for anyone carriage is not exceeded under any circumstances

c) Cash in Safe / Strong Room and on the counter should be kept within insured limit as directed by Head Office/Controlling Office from time to time

d) The surplus cash should be lifted to Safe / Strong Room from counter and further to the polling Branch or Currency Chest

e) All the above

2. What is the guide lines regarding the conversion of Accounts?

a) Conversion of Individual Accounts to Joint Account and vice versa is permitted

b) Conversion of individual Account to joint Account is not permitted

c) Conversion of Joint Account to individual Account is not permitted

d) Both b and c

e) None of the above

3. Who is the Natural Guardian of a Hindu Minor as per Hindu Majority and Guardianship Act 1956?

a) In case of a Boy or unmarried girl, ‘The Father’ and if the father is not alive, ‘The Mother’

b) In the case of illegitimate boy or illegitimate girl – ‘The Mother’ and if she is not alive ‘The Father’

c) In the case of a minor married girl – ‘The Husband’

d) Of both the father and mother are not alive, no one other than the person appointed by a competent Court can act as guardian of a Minor

e) All the above

4. Who is the Guardian of a Christian Minor?

a) Either Father or Mother can be the Natural Guardian to the Minor

b) Only Father can be the Natural Guardian

c) Only Mother can be the Natural Guardian

d) b and c


5. In case of an Illiterate persons account what are the restrictions/ Stipulations?

a) The rules and regulations relating to SB or other Deposit accounts have to be clearly explained to them in a language which he understands

b) He should be advised that, for withdrawing money from his account, he has to come personally to the Bank with the Passbook every time.

c) Current Account should not be opened in the name of an Illiterate person and cheque book should not be issued to him under any circumstances.

d) Left hand thumb impression and passport size photo have to be obtain

e) All the above

6. What are the regulations in respect of blind persons Accounts

a) There is no legal bar for a Blind Person to open a Bank account.

b) Due care must be exercised in opening A/c for a Blind Person as there may not be consistency in their signature. So the Signature & Thumb Impression of the Blind Person has to be obtained at the time of opening the account.

c) Blind Persons can operate the A/c by themselves and on merits of each case, the Branch Manager may allow a Next of Kin of the Blind Customer to operate the account as Representative after taking proper “Letter of Authority” from the Blind customer to that effect.

D) Each withdrawal by the Blind customers must be counter signed/witnessed by a third Person known to the Bank and the amount should be read out to him when No person is in hearing distance of the Blind Customers.

E) All the above

7. What is ‘Power of Attorney?

A) A person may authorize another person to open and to operate Bank account on his behalf. This authority is known as Power of Attorney.

b) The PA may be special or general. Special PA is meant for a Single Transaction & General PA is to carry out Various Transactions or series of Transactions.

c) The PA must give specific Authority to open & operate a Bank account, to overdraw in Current A/c, to borrow/to accept /to endorse Bills of Exchange etc.

d) Authorized Bank Officials must study the Power of Attorney very carefully and allow operations only as per terms of PA.

e) All the above.

8. What are the provisions of Nominations?

a) As per the Banking Laws (Amendment) Act of 1983 the nomination facility have to be extended to all Banks customers.

b) Nomination facility is available only in respect of Deposits held in Depositors individual capacity and not in representative capacity.

c) The Nomination facility is available only to Individual Customers.

d) Any change in Nomination can be effected by the Depositor/A/c holder at any time, during the pendency of the account/Deposit during his/her life time.

e) All the above

9. What you mean by Priority Sector Advances?

a) RBI decided a certain Section/Categories/Areas which ae included in the Priority Sector so as to ascertain a Minimum

portion of Bank Credit should be flown to these sector invariably.

b) Priority Sector Lending by the Commercial Banks is monitored by RBI through Periodical Returns.

c) Performance of banks is also reviewed in various forums set up at State, District and Block level also.

d) All the above.

e) None of the above.

10. Under which circumstances, the Bank must ensure that No further payment out of one account is allowed or passed.

a) On Death of a Customer.

b) On insolvency

c) Insanity of a customer

d) All of them.

e) None of them

11. How the stop payment Instructions received from customers is handled.

a) Whether the cheque, for which stop payment is issued, is already paid or not, by perusing the account.

b) If the cheque is unpaid as at the time of receipt of the Stop payment instructions, all relevant particulars must be entered in to the system.

c) Banker cannot honour the cheque after getting the clear stop payment instructions from the customers.

d) All the above.


12. What is Standing Instruction?

a) the customer of the Bank can instruct the Bank in insisting along with his signature to carry out, certain functions at fixed

periodicity like, transferring an amount from SB a/c to RD A/c, Interest on Term Deposit to SB a/c or any other account,

Transferring from SB a/c to certain Loan a/c, Payment of Insurance Premium etc.

b) Instructing the Bank or its Officials to stand or appear before any Government Departments/officials on his behalf.

c) To carry out his instructions such as visiting his kith and kin and taking their welfare on his/her absence, especially in the

case of Non Resident Indians having account with the Bank.

d) b & c


13. What is GARNISHEE ORDER?

a) Garnishee Order is an attachment order issued by a Court, under order 21, Rule 46 of Civil Procedure code. It is an order

of the Court obtained by the Judgment Creditor, attaching the Funds, belonging to a judgment Debtor, with the Bank

b) It is an order to gent Banks dues from the Borrowers to their Loan accounts.

c) It is an order directing the Bank to pay compensation to the banks customers for the lapses in their services.

d) B & C only.


14. What is an Attachment Order served on a Bank?

a) Attachment Orders are normally issued by Competent Authorities like IT8 Commercial tax Offices/PF/Employees State

Insurance Authorities etc. On receipt of such orders, the Bank have to set aside the attached amount and the same could

be released to the A/C holder only if he is able to get orders from the authorities concerned withdrawing the attachment

Order and producing the same to the Banks within a reasonable time.

b) It is an Attachment of dues made by the Bank on its customers.

c) It is an attachment to be effected on the assets of the parties who defaulted in repayment of loans

d) B & C only


15. What are the procedures for submission of Banks records to the statutory Authorities?

a) The Bank has to produce any records called for by any Court/IT Authorities/Police Department in criminal cases, if that

demand is in writing.

b) In all such cases, when the originals are submitted, copies of the same would be retained in Banks.

c) Such orders received from the above said authorities will have to be retained in a separate file under the custody of the

Manager.

d) Acknowledgement for the said Records furnished by the Banks have also to be retained in the same file & originals as

and when returned to the Bank, it must be replaced in the records.

e) All the above.

16. What is the importance of Nomination in DEPOSIT ACCOUNTs?

a) A payment made to the Nominee against the Deposit, standing in the name of the deceased Depositor, the Bank gets a

good and valid discharge.

b) The role of the Nominee is only to receive the proceeds of the deposit in the event of Death of the Depositor /All

depositors.

c) It is entirely the responsibility of the Nominee to account the Money with any Legal heir/s of the deceased and the Bank

is in no way concerned with it.

d) All the above


17. What are the types of Borrowers?

a) Individual/s

b) Sole proprietary firm/Partnership firms/Joint venture/Companies.

c) Hindu Undivided Family/Trusts/Co-Op Societies.

d) Statutory Corporations.

e) All the above

18. What are the Main Categories of Loans in banks?

a) Fund based & Non fund based

b) Liquid Loans & Non Liquid Loans.

c) Income Loans & Non Income Loans

d) All the above


19. What is a Term Loan?

a) Term Loans are repayable in installments spread over a period of Time, after the Moratorium period wherever

applicable.

b) A running loan, where the repayment is not necessary and only interest is to be repaid whenever due.

c) Loans to be repaid only on Demand.

d) B& C


20. What is bills purchased and discounted?

a) Bills purchased refer to Demand Bills and cheques, whereas Bills discounted refers to Usance Bills.

b) It is type of Advance available to the customers who can get the funds by getting the Bills purchased or discounted by

commercial Banks, who in turn will collect the same

c) This is a major portion of the Advances portfolio of the Banks and the business community gets the Trade Bills / Cheques

encashed in an easy way well before its collection.

d) All the above.


21. What is the Purpose of Ensuring the END USE of the Funds financed by the Bank ?

a) To ensure the proper utilization of the funds and to ensure the proper use of Bank Funds & to Monitor its flow.

b) Bank has to ensure that withdrawals from Cash Credit/Overdraft A/c’s are strictly for the purpose for which the credit

limits are sanctioned by them.

c) There should be No diversion of working Capital Finance Funds for acquisition of fixed Assets, Investments in shares,

debentures, and units of mutual funds or in capital Market.

d) All of the above.


22. What you understand about PRIME SECURITY?

a) A security/Asset acquired by the Borrower with Bank Finance or the one against which credit is provided by the Bank.

b) It is a Personal Security provided by the borrower.

c) The Security of a Prime Guarantor to the loan granted.

d) B & C only.


23. What is a Collateral Security?

a ) It is an additional Security which provides a cushion to the Bank in case of need/Default in Repayment.

b) It is the security raised out of personal Obligation.

c) A security raised other than the proceeds of loan amount.

d) b & c only


24. What you mean by Personal Security of Guarantor?

a) It comprises a guarantee by a 3rd party for payment of dues in the event of default by the borrower.

b) The personal security of guarantor can be enforced only through the competent court of Law as it does not involve

creating a charge over the assets of the guarantor.

c) We cannot make the guarantor liable to repay the loan in case of default by the borrower.

d) a & B only


25. What you mean by Margin for Loans?

a. A suitable % of the Loan amount is to be brought in to the business/venture/on cost of the Asset to be created out of the

Bank Finance is known as Margin to a Loan.

b) Normally the Bank do not provide Finance to the extent of the Full value of the Assets charged o them under a credit

facility. This Portion to be borne by the Borrower &the same is known as Margin.

c) Depending upon the risk perception, a suitable % is stipulated on the value of the Charged Assets/Assets to be created

out of Bank Finance.

d) All the above.


Key

1.e 2.a 3.e 4.a 5.e 6.e 7.e 8.e 9.d 10.d 11.d 12.a 13.a

14.a 15.e 16.d 17.e 18.a 19.a 20.d 21.d 22.a 23.a 24.d 25.d

1. What is refinance?

a) Certain agencies under RBI provides Refinance to the respective Banks for certain categories of Advances they are EXIM

BANK, NABARD, NHB, SIDBI etc.

b) This refinance will take care his liquidity position of the banks by extending loans to those Sector for which refinance is

available.

c) Even if a Bank avails of Refinance for certain eligible Advance, the Risk remains with the Bank. This aspect of Banks

Decision on a credit proposal, to be taken care of by them

d) All the above.


2. Why credit exposure norms are implemented.

a) To achieve a better Risk Management and avoidance of concentration of credit risk the RBI from time to time prescribes,

limits on exposure of a Bank to individual Borrower and groups of Borrower in India.

b) To provide Maximum Bank credit/Finance to Individual Borrowers& Group of Borrowers, credit exposure limit is

introduced.

c) To facilitate minimum finance to corporate this credit exposure limit is introduced.

d) Both B & C

e. None of the above.

3. Base Rate system has replaced the BPLR system wef:

a) 1st July 2000

b) 1st July 2010

c) 1st April 2010

d) 1st July 2012


4. Base Rate System is aimed on

a) Enhancing transparency in lending rates of banks and enabling better assessment of transmission of monetary policy.

b) To help bankers to reap maximum profit.

c) To help Govt. to get maximum dividend from public Sector Banks.

d) B & C only.


5. What are the categories of loans priced without reference to the Base Rate.

a) Staff Loans.

b) DRI Loans (Differential Rate of Interest Loans)

c) Loans on own deposits of the Banks.

d) All the above.


6. What do you mean by Fixed and Floating Rate of Interest on Loans?

a) Banks can have the freedom to offer fixed, Floating rate of Interest to their customers, subject to conformity of their

asset liability management (ALM) guidelines.

a) Customers can choose floating or fixed rate

c) If the rate of interest of loans of all borrowers goes up or down, it will be applicable to all including this particular

customer who opts for floating rate of interest.

d) In case of Borrowers who opted for fixed ROI, the same ROI will remain static throughout the tenure of the loan or at

least of the fixed period.

e) All the above.

7. Penal rate of interest may be levied for

a) Default in repayment

b) Non- submission of Financial statements

c) Non- compliance of sanction conditions/stipulations

d) All the above.


8. How a security is created for a Bank Loan?

a) By Mortgage

b) By Pledge

c) By Hypothecation

d) By Assignment or set off

e) All the above

9. What do you mean by Banker’s General Lien.

a) Balance of amount , any goods and security bailed A Banker may, in the absence of an agreement to the contrary, retain

as security, for a general balance of amount, any goods and security bailed to him

b) Bank can retain any Security, or goods pledged to him without quoting any reason

c) Bank have an access to any security handed over to him for any loan which gone bad.

d) B & C only


10. What do you mean by Negative lien?

a) An undertaking given by the Borrower to the Bank that he will not create any charge over his immovable and moveable

properties and assets including uncalled capital without the prior permission of the Bank.

b) It relates to goods, securities etc which are not in the possession of the Bank.

c) Negative lien does not require registration with the Registrar of companies or similar authorities.

d) All the above.


11. What are the restrictions put on Loans and advances by th4e Banks

a) Banks cannot give loans and advances against the security of its own shares.

b) It cannot give loans or advances to its own Directors.

c) Bank cannot give loans/advances to any entity in which its directors are interested.

d) All the above.


12. What you know about Rehabilitation of Loans?

a) If credit default happened due to genuine Business problems, the Bank can Extend rehabilitation of loan by examining

the feasibility of providing Additional Assistance/concessions/rephrasing etc.to help the enterprise to make its operation

viable again.

b) Rehabilitation of Sick SSI units are a part of this process.

c) CDR (Corporate Debt Restructuring is also a part of this process

d) All the above.


13. FAIR Practice code in Banks pertains to?

a) Application for loans and its processing, Loan appraisal &Terms and conditions.

b) Disbursement of Loans and Post disbursement supervising.

c) General guidelines relating to discrimination based on sex, caste, and religion. harassment in recovery, Transfer/

takeover of account. Etc.

d) All of the above.


14. What Banks look for sanctioning a loan.

a) Whether the activity/proposed activity is technically feasible, economically viable commercially acceptable and the

competency and profile of the promoters/management of the firm.

b) The borrower/ would be borrower is a high value/Financially ell individual is the prime criteria to sanction a loan.

c) If the borrower is having very good connection and report with any political party, whether ruling or in opposition is the

prime criteria for a loan from Bank.

d) Both B & C


15. Repayment Holiday/Moratorium for Education Loans?

a) Course Period + I Year or 6 Months after getting the JOB, whichever is earlier.

b) Course Period + 6 months only.

c) Course Period + 1 Month only.

d) Course Period + I year only.

e) All the above.

16. What is the instruction regarding the godown Board display in the godowns under advances/Loans made there against

the goods.

a) Godown Board reading “ Goods in possession of XYZ BANK “ or “Goods pledged/hypothecated to XYZ Bank” should be

affixed to the main entrance of the godown at a conspicuous place in the premises, compound or at the entrance of the

compound where goods pledged/hypothecated to the Bank are stored.

b) Its display is intended to serve as a Notice to all parties, desiring to handle, and deal with the goods lying therein, of the

Banks interest and charge therein.

c) It is a notice to the public, of the Banks interest as a lender in the Godowns. In this way, Third Parties dealing with a

Banks Borrowers are provided with a Notice of the banks interest in the stock and are cautioned to not to accept such

stocks in disregard or ignorance of the Lending Banks rights in them.

d) all the above.

e) None of them

17. What are the instructions regarding the insurance to be taken on the goods pledged/hypothecated to Bank.

a) Goods pledged/Hypothecated to Banks should be fully covered against fire and Bulgury risks. In case of necessity, cover

for riot or any other risks such as Emergency, and War Risk Insurance must also be obtained.

B) It is essential that goods either pledged or hypothecated to the bank are adequately insured so that in case of damages

/loss of the goods, which are the bank Primary Security, Banks interest is not impaired.

c) It is absolutely necessary to insist upon the borrower to take Burglary Insurance on the stocks pledged to the Bank.

d) Insurance must be for full marketable value of goods pledged/hypothecated to the bank to avoid the “Average clause “

effect of any under insured stock/goods. So the Market value should be insured to safe guard the interest of the Bank

e) All the above

18. Whether unpledged goods can be stored in a godown along with pledged goods?

a) In special cases, and in exceptions circumstances this can permitted ad bank have to ensure that a letter is to taken from

the party concerned absolving the Bank from all responsibility in respect of such storage and indemnifying it against any

loss arises there from ( the draft letter should be approved from the Controlling office of the bank).

b) That the unpledged goods requiring insurance are adequately insured.

c) That the unpledged goods and the proper record of their storage and delivery from the godown is separately maintained

in the Books of the Branch.

d) All the above.


19. What are points to be borne in mind while effecting delivery of Stocks pledged

a) the Borrower should make a request in writing for delivery f goods pledged to the Bank, specifying the Quality,

Quantity, together with the price at which the goods are to be delivered. Such letter should be signed by Borrower himself

or their authorized representative.

b) Partial delivery of commodities stored loose should not be allowed.

c) the godown keeper shall make the necessary entries after satisfying himself that the borrower has deposited sufficient

amount in his Cash Credit Account and /or given storage order for fresh pledge of stock, so that debit, Bank will be

adequately covered by New Drawing Power.

d) Delivery of goods should not be confined to certain selected items only, particularly in those accounts where turnover is

not healthy. Where old stock is lying, Bank should insist that party takes delivery of part of the old stock also.

e) All the above.

20. What are the guidelines regarding Inspection of Stocks?

a) Goods pledged, or hypothecated to the Bank are to be inspected on Monthly or Quarterly basis in accordance with the

terms of sanction by the Official/Branch manager.

b) The report of stock verification is prepared, analyzed at the Branch level and Stock Inspection Report must be filed,

account wise and to be produced before Statutory Auditors/Internal Inspecting Officers/RBI Auditors for

comments/observations.

c) In Consortium Advances- the controlling Bank/branch or Leader of the consortium shall be responsible for conducting

Stock Inspection for the Company, as a whole. Where Part limit allocated to other Branches, located near a particular

division/s the said Branch may be authorized by the Controlling Branch, the sanctioning Authority, to conduct Stock

Inspection only for that division.

d) All the above.


21. What re the charges for Inspection of Godown/Assets/Securities etc?

a) Every month godown charges, which will also include Inspections charges in all

Advances Accounts against goods should be recovered from Borrower and credited to General charges account.

b) Godown Inspection charges also to be recovered as per the Schedule of the Bank concerned.

c) Godown storage & Delivery charges (as applicable to pledge/Godown to be recovered.

d) Actual conveyance Charges of the Godown Keeper/Employee as well as his salary & all other allowance paid should be

recovered from Borrower/s as the case may be.

e) All the above.

22. Gold Loans by the Bank cannot be extended to :-

a) Banks are prohibited from granting any advance against Gold Bullion/Primary Gold.

b) Gold Loans cannot be granted to Non Owners of the Gold Jewellery.

c) Gold Loan cannot be granted to the Jewellery Manufactures/Exporters.

d) All the above.


23. Gold Loans can be granted by the Banks as :-

a) Agriculture Gold Loan

b) Non- Agriculture Gold Loan

c) As a Priority Sector Loan

d) As a Non Priority Sector Loan

e) All the above as per the Schemes envisaged by individual banks.

24. When the Pledged gold Ornaments are released to Third Parties, what are the precautions to be taken.

a) A Letter of Authority from the Borrower and subsequent confirmation of the Borrower should be obtained.

b) It should contain an undertaking by the Borrower absolving the Bank of any Responsibility in the event of dispute or loss

arising from the delivery of the ornaments to the party named therein.

c) The receipt of the third part should be obtained on the letter of authority as well as in the Gold Loan Register.

d) all the above


25. What are the security norms for the Education Loans?

a) No Security must be insisted upon for loans up to Rs 4 Lakhs.

b) For Loans above this amount, collateral Security of suitable value or co-_obligation of parent/Guardian /third party

along with the assignment of future income of the student for payment of installments may be obtained.

c) The security can be in the form of Land/Building, Govt. Securities/Public Section Bonds. Units of UTI.NSC, KVP, LIC policy,

Gold Bonds, Shares/Debentures. Bank Deposits in the name of student/Parent/Guardian or any other Third party with

suitable margin.

d) Wherever the Land/Building is already mortgaged, the unencumbered portion can be taken as Security on II nd Charge

basis provided it covers the required loan amount and in case loan is given for purchase of computer, the same to be

hypothecated to the Bank.

e) All the above.

KEY

1.d 2.a 3.b 4.a 5.d 6.e 7.d 8.e 9.a 10.d 11.d 12.a 13.d

14.b 15.a 16.d 17.e 18.d 19.e 20.d 21.e 22.d 23.e 24.d 25.e

1. An Education Loan Application Rejection can be done.

a) With the concurrence of the next Higher Authority.

b) Loan application for EL can be rejected without quoting any reason.

c) Loan application for Education Loan should be rejected only with concurrence of State/Central government authorities.

Only.

d) All the above


2. What is the security for a Home Loan?

a) the property against which the Home Loan is permitted should be charged to the Bank by way of Equitable

Mortgage/Registered Mortgage. Bank should ensure that there is a clear and unencumbered Title to the property and that

the property is marketable.

b) For Home Loan any security other than the House/Flat constructed/to be constructed or to be purchased is sufficient as

security.

c) Any third party security is enough for Housing Loan.

d) B & C only.


3. The purpose of Automobile Loan can be

a) For purchase of New or used Vehicles. (Cars, 2 Wheelers, SUVs MUVS etc)

b) In case of Used vehicles It should be less than 3years old and should have a Road worthy condition for the Repayment

period of the loan. It can be relaxed in exceptional cases.

c) Any vehicle of any age can be finance under Vehicle Loan

d) Only quite New/Brand new vehicles be financed under vehicle loan

e) A & B only.

4. What is the need of CBS and its effect in Banking Sector?

a) It helped to enhance efficiency and effectiveness and increase customer satisfaction and convenience.

b) It simplified all Banking operations and enhanced Bank’s competitiveness.

c) It made available to spare Staff to focus on Marketing and& Selling of Banking products.

d) It helped the Banks to meet the demands and needs of the customers.

e) All the above.

5. What are the points to be borne in mind relating to Day Tart up Activities under CBS?

a) It should be carried out only by the Branch Manager or system Administrator of the Branch.

b) It should be properly documented and signed in the Register maintained & It should not be carried out prior to the

Banking Hours.

c) It should be ensured that all the security checks are performed as per the guidelines from the Head office of the Bank.

d) It should be ensured that banking data/date is verified daily & check sum facilities used regularly.

e) All the above.

6. What are the operational aspects relating to the Transaction Control?

a) Date is to be authorized by Branch Manager & System Administrator.

b) The Soft ware will take care to check that the entries pertaining to current date would only be accepted. There is no

provision to feed back dated or future dated entries.

c) In the case of Non-Usage of Terminals, those terminals are to be logged off.

d) Only for the physically present user of the computer the requisite terminal/user account is enabled, else the account to

be disabled.

e) All the above.

7. What are the points to be borne in mind relating to Day End Activities?

a) Day End Activities are carried out by either the Branch Manager or the System Administrator and are to be properly

documented.

b) Supplementary activities are checked and special users are to be deleted.

c) The data Backups taken are to be kept in safe custody and properly documented and server room is properly locked and

the keys are kept only with authorized persons.

d) The following documents/reports are to be generated:-

i) access log , supplementary report is printed either by Branch Manager or system Administrator & to be filed separately.

ii) Cash denomination report to be printed and filed

iii) Vouchers are tallied and signed either by Branch Manager or System Administrator

e) All the above

8. What do you mean by Logical Access Control?

a) It is to Ascertain that assets are safe guarded and data integrity are maintained by the computer system

b) It is only to control the staff access to the Banking Software

c) It is to control the accessibility of the software by the customers

d) b and c only


9. What are RBI guidelines in connection with computerized Banking operations?

a) Banks have to ensure proper checks, controls and processes are put in place to prevent/ minimize misuse of

computerization

b) RBI have to introduce all the control measures

c) Govt. Of India IT Ministry have to introduce all the control measures

d) b and c only


10. What are the Back office functions relating to Book keeping and Accountancy category in Bank?

a) Transaction processing, Maintenance of General Ledger and other books of Accounts, Balancing of bunch Accounts,

Reconciliation of entries and subsidiary system, Preparation of Financial Statements etc…

b) It is also name sake functioning of the Banking operations which cannot be grouped as front office function

c) As per RBI guide lines, banks cannot extend certain functions to customers of the Bank. This is known as Back office

function

d) b and c only


11. Under deposit category of Bank accounts what are the Back office functions?

a) Calculation and posting of interest, Service charges, remainder for renewal of term deposits, changing the nature of

operation of Accounts – Single/Jointly etc…, can be grouper as Back office functions in Deposits.

b) Account maintenance of Deposits

c) Opening and Closing of deposit Accounts

d) All the above


12. What are the reconciliation functions in Banks?

a) Reconciliation of payments involving intermediaries and correspondent Banks

b) Reconciliation of Bank accounts with RBI, other banks and Institutions

c) Reconciliation of intra branch entries and subsidiary system

d) Reconciliation of inter branch / office entries


13. Why Reconciliation is needed in Banking?

a) A debit / credit in inter office transactions, originated at one Branch, should result in a corresponding credit/ debit

transaction (Reversal entry) in the inter office account, at the other Branch. There may be a time lag in the case of some

type of transactions like Drafts issued etc… Therefore every entry in the inter office account should be recon sealed with a

corresponding entry in the Account of another Branch / Office of the Bank

b) An amount remitted by the customer does not credited/ Posted in the Account of the said customer needed

Reconciliation

c) Any cheque paid by the Bank does not reflected in the Account of the customer needed Reconciliation

d) b and c only


14. What is the time limit as per the RBI guide lines regarding the inter Branch entries and the reason for it?

a) RBI had instructed the Banks to re conceal the entries outstanding in their inter Branch accounts with in a period of six

months considering the fraud / Risk factors

b) RBI given time up to one year due to the importance of Reconciliation

c) 2 year time, taking into consideration of the work load on Banks

d) Both b and c


15. What is the Reconciliation setup in the Banks?

a) Reconciliation setup is normally centralized at the designated office of the Bank (The Reconciliation department)

b) In CBS environment it is centralized at the IT department at the Head office

c) The work may be sub divided into segment or specific areas. Eg: DDs paid / payable / DDs issued, inter Branch

remittances, Head office accounts etc…

d) All the above


16. All Banks treat the Reconciliation process as very important why?

a) Banks have put in place system and procedures for Reconciliation and centralized Reconciliation department due to the

fraud and Risk factors.

b) It is a regular/ routine work so not so important considering other important works such as Account opening, Deposit

canvassing etc…

c) Only because the Govt. of India / RBI insist for it

d) Only because Head office insist for it


17. What function in Loan Accounts can be grouped as back office functions?

a) Processing of Loans, Loan Servicing, Loan modification, Default Management and collection, calculation of EMIs,

Calculation and posting of interest, Penal interest, processing fee, commission and pre payment charges processes,

implementation of credit products, operational limits, risk management etc…

b) Any function related Loan opening, Maintenance and closing is referred as back office function

c) Any charges levied on loans such as insurance, service charges, processing charges can be called as back office functions

in the Loan Accounts

d) b and c only


Key

1.a 2.a 3.e 4.e 5.e 6.e 7.e 8.a 9.a 10.a 11.a 12.a 13.a

14.a 15.d 16.a 17.a

1. what is true regarding insurance for cash/ in cash...

Documents