Banking Awareness Questions By Rishi Jaiswal

1) On the recommendation of which committee RBI was established? Hilton young commission

2) In which year RBI was nationalised? 1949

3) By changing which rate RBI can influence the volume created by bank?Bank rate & open market operations.

4) Who represents the country in IMF & WORLD bank? RBI

5) What is D ICGC? Deposit insurance credit guatantee corporation.

6) what is open market operation? Selling & buying of government securities by RBI

7) What is 4 C of lending? Character, collateral, capital, capacity.

8) What is “CAMELS”? Capital adequacy, asset quality, management quality, earning,

liquidity, sensitivity.9) What is limit of fdi pvt sector banks & public sector banks?

74% for pvt & 20% for public sector.

10)In which year banks were nationalised?

1969

11) what is NABARD & When was it established?

National bank for agriculture & rural developemt estbd in 1982.

12)which is regulator of agriculture & rural market ?

NABARD

13) What is a schedule bank?

Banks which are registered under second schedule of RBI act 1934 and have a min paid up capital of 25 lac.

14) What is unit banking system?

Single bank operates through single office.

15) What is deposit at call?

In this money deposit may be withdrawn by giving notice before 7 or 14 day.

16) What is SWIFT?

Society for worldwide interbank financial telecommunication.

17) What is “SFMS”?

Structural finacing messaging system( Indian system)

18) What are retail banking products?

Home loan, car loan, credit card, debit card.

19) What is “Money Market”?

It is a monetary system in which short term funds are being borrowed or lend?

20) What are different instruments in money market? Call money, REPO, certificate of deposit, treasury bill, bankers

acceptance.

21) what is “RTGS” & its min limit? Real time gross settlement and min limit is Rs.2lac.

22) What is “NEFT” & its limit? National electronic fund transfer no min or max limit per transcation

limit is Rs50000.

22) which foreign country funds can be transferred through “NEFT”? NEPAL max limit is Rs 50000.

23) what are different types of NPA? Sub standard, doubtful, losses.

24) which type of commercial banks are being covered under banking ombudsman scheme 2006?

All scheduled commercial banks including cooperative banks also. 25) A bounced ECS transcation will be deal under?

Payment & settlement Act 2007.26) Intrest on savings account is calculated on which basis?

Daily product basis.27) largest shareholder of a Nationalised bank is ?

Indian government.28) what is TDS & TCS?

Tax deduction at sources & tax collection at sources.29)Is TDS applicable on Reccuring deposits?

NO30) What is “LLP”?

Limited liability partnership31) what is authorised & issued capital of Regional Rural Banks?

5 corore authorised & issued -1 crore.32) what is capital structure of Regional Rural Banks?

50% share central govt. , 35% sponsored bank, 15% state govt.33) which bank acts as a banker bank where RBI is not present?

State bank of India.34) what is the share of RBI in SBI?

55%35) Who is chairman of DICGC and where its head office?

Dy.governer of rbi is chairman & head office is in Mumbai.36) what is “CIBIL” & When was its estbd?

Credit information buereu of india limited estbd in 2000.37) what is “LAF”?

Liquid adjustment facility, it is the daliy infusion of liquidity and absorbion of liquidity through repo n reverse repo, with govt. Securities as collateral.

38) what is stagflation? A prolonged period of little or no growth in economy with high

unemployment.39) what is the min capital that a NBFC should posses?

Rs 25 crore.40) what is monetary policy?

It refers to the use of instrument under the control of central bank i.e RBI to regulate the availability, cost, & use of money & credit.

41) what is the max limit for bank to avail credit through MSF? 1% OF their total net demand & time liabilities.

42) what is “CRAR”? Capital to risk weighted assest ratio. It is banks the ratio of bank risk

to its total capital.43) why is “CRAR” necessary?

It is ensure that bank can absorb a reasonable amount of loss & comlies with statuary capital equirement.

44) what is “BCBS”? Basel committee on banking supervision.

45) what are capital requirements under Basel-3? Commom equity tier 1 capital must be 5.5% of risk weight age asset

ratio.TIER 1 capital must be atleast 7% of RWA’sTotal capital must be 9% of RWA’s.

46) what is “PMLA” court? It is prevention of money laundering act .

47) proposal of FDI are being considered by? FIPB ( Foreign investment & promotion board).

48) what is “ NEER”? Nominal effective exchange rate.

49) what is “REER”? Real effective exchange rate.

50) on the recommendation of which committee universal banking was implemented in INDIA?

R.H.khan committee 51)which risk is not associated as risk in bank in india?

Operational risk52) what is “FSDC”?

Financial stability & development council. 53) what is “CBLO”?

Collateral borrowing & lending obligation.54) what are Intagible Assets?

Valuable things like patent, idea, trademark.55) what is rolling settlement?

Trading in stock market.56) what is the term used for temporary loans that are allowed by RBI to government to bridge the gap between expenditure & receipts?

Ways & means advances

57) what are asssets of banks? Cash in hand, cash with rbi, investment in government securities,

loans& advances. 58) what are liabilities of bank?

Share capital, reserve funds, deposits, borrowing by bank.59) The head of “hindu undivided family” is called?

Kreta 60) ways n means advances are being provided by RBI to?

State & central government.61) what is intrest rate lieived on ways n means advances?

2% above the repo rate. 62) what is “FIMMDA”?

Fixed income money market & derivatives association of india.63) what is “FEDAI”?

Foreign exchange dealers association of india.64) What is validity of a cheque & draft?

3 months65) what is “OTCEI”?

Over the counter exchange of india.66) what is right to set off?

It is a term used for the process in which a bank adjust a loan from a deposit of same name & same bank.

67) what is “INFINET”? Communication backbone of RBI for Indian banking & financial

sector.68) what is “IFSC”?

Indian financial system code.68) what is shadow banking?

Banking system that is able to avoid standard banking regulation.69) what is “IMPS”?

Interbank mobile payment system.70) what is “Moratorium”?

It is the time holiday given by bank to pay a loan.71) holidays of bank are being decided under which act?

Negotiable instrument act.72) banks can keep information of their customers confidential under which act?

Consumer protection act 1986

73) what is unclaimed account? When customer changes its residential & due to this account

becomes un operative.74) what is dormant account?

No transcation in 6 month or account holder is dead.75)what is the limit of trnascationof foreign currency that banking companies have to give detail, under money laundering act?

Rs. 10 lac76) what is evergreening of loan account?

Adjusting of NPA for fresh sanction of loan.77) what is “Investment banking”?

It is that in which financial service include” initial public offering, pvt placement of debts, meger or aquistion, corporate restructuring, loan sysndiacation.

78) what is loan syndiacation? Multiple lender to give loan to borrower at an appropriate rate of

intrest.79) what is “FCCB”?

Foreign currency convertible bond. These are type of convertible bonds which are issued in a currency different than issuers domestic currency.

80) what is soft loan? It is the loan which is provided on very low rate of intrest & are long

terms i.e they can be repaid after a long period of time.81) what is reverse mortgage scheme?

It is a loan that enables senior home owner aged above 60yrs to convert part of their homes into income without selling their property.

82)what is rate of intrest on certificate of deposit? No intrest rate

83) what is provisioning? All bank now deduct some amount of their pretax income aside in a

separate to create a cushion for loans which may go bad.84) what is “QIB”?

Qualified institutional buyer, it is a purchaser of securities that is deemed financially & sophisticated & legally recongised by SEBI.

85)If one has to not pay income tax on the intrest rate earned from fixed deposits , which form he has to filled?

15(g) for normal citizens & 15(h) for senior citizens.

86) what is “SARAFASSEI ACT” 2002? Securitisation & reconstructing of financial asset & enforcement of

security intrest act.

87) what is the amount written in words & numeric in a cheque called? Numeric-courtsey amount, words-legal tender.

88) what is negotiable instrument? It is promissory note, bill of exchange, cheque.

89)what is the rating used by RBI to judge health of bank? CAMELS

90) WHAT is “DEMONITZATION”? It is an act of stripping of a currency of its legal tender.

91)what is priority sector lending? Some areas or field in a country dependeing on its economic

condition or govt intrest are prioritised and are called priority sector. 23% of total lending of bank are to be given to these sector.

a) Agricultureb) Msme c) Educationd) Housinge) Export.

92) what is “FCNR”? Forign currency non resident account. It a term deposit account in

forign currency. It means NRI & PIO’s can open a FCNR account. This a/c can be opened for a min of 1yr & max term of 5yr.

93) what is the limit to borrow from ECB in automatic route? $750 million.

94) what is overall for ECB for a year? $30 billion.

95) what are the currencies under which borrowing from ECB can be done? Us dollar, euro, british pound, yen, Chinese renmibi.

96) what is “BCTT”? Banking cash transaction tax. It is a small tax on cash withdrawal

from bank exceeding a particular amount in a single day.97) who is resulator of IT SECOTR in india?

NASSCOM.98)why is MSF always 1% above the reporate?

It is to provide safety valve against anticipated liquidity shock.

99) what is NFRA? National financial reporting authority. It is a regulatory body for

auditing, accounting, & financial repoting.100) what is FRBM ?

It is fiscal responsblity & budget management act.