Banking GK-1

Banking GK-1

1. Commercial paper can be issued for a maximum period of:

Answers: 365 days or 1 year.

2. The Mutual funds in India follow accounting standards laid by:

Answers: SEBI (Securities and Exchange Board of India)

3. Minimum amount for Certificate of Deposit has been fixed at:

Answers: Rs. 1 Lakh

4. AML is a term mainly used in the financial and legal industries. Expand the term AML:

Answers: Anti Money Laundering

5. PIN is a number allocated to an individual and used to validate electronic transactions. Expand PIN:

Answers: Personal Identification Number

6. What is Repo rate?

Answers: It is the rate is the rate at which RBI lends money to the commercial banks.

7. What is Stale Cheque?

Answers: A cheque which is presented to a bank after 3 months from date of issue is considered as stale cheque and will often not be honored for cash or deposit at a bank.

8. What is Bancassurance?

Answers: The selling of life assurance and other insurance products and services by banking institutions.

9.What is the full form of KYC?

Answers: Know Your Customer (KYC)

10. Know Your Customer (KYC) guidelines are issued under:

Answers: Section 35A of the Banking Regulation Act, 1949

11. MICR code consists of how many digits ?

Answers: 9 digits.

(First three digits denotes city, next three digits representing the bank and the last three digits representing the bank branch)

12. What is the Minimum limit in RTGS system?

Answers: 2 lakhs (there is no upper limit in RTGS)

13. What is full form of CTS?

Answers: Cheque Truncation System

14. Under which service, customers may access their bank account and perform basic transactions from any of the member branch offices.

Answers: Core Banking Solution (CBS)

15. Exchange of cash flow in different currency is known as:

Answers: Currency Swap

16. Assets or loans which stop performing after 90 days is known as:

Answers: Non Performing Asset (NPA)

17. Who controls the Monetary Policy in India?

Answers: RBI (Reserve Bank of India)

18. Which card is issued by NPCI (National Payments Corporation of India)?

Answers: RuPay Card

19. Definition of Current Account deficit:

Answers: A measurement of a country's trade in which the value of goods and services it imports exceeds the value of goods and services it exports.

20. Full form IFSC –

Answers: Indian Financial System Code

21. In BSBDA (Basic Savings Bank Deposit Account) the credits in a financial year does not exceed rupees:

Answers: Rs. 1 lakh

22. In BSBDA (Basic Savings Bank Deposit Account) the balance at any point of time does not exceed rupees:

Answers: Rs. 50,000

23. In BSBDA (Basic Savings Bank Deposit Account) the withdrawals and transfers in a month does not exceed rupees:

Answers: Rs. 10,000

24. At which rate RBI give loans to commercial banks?

Answers: Repo rate

25. Full form of CASA:

Answers: Current Account Saving Account

26. In what denominations Commercial Paper (CP) can be issued?

Answers: Rs. 5 lakh

27. What is the minimum denomination of Treasury bills to issue in India?

Answers: Rs. 25,000

28. Who cannot issue Certificate of Deposit (CD)?

Answers: Regional Rural Banks (RRBs) and Local Area Banks (LABs)

29. Expand ASBA:

Answers: Application Supported by Blocked Amount

30. Depositor Education and Awareness Fund (DEAF) is maintained with:

Answers: RBI

31. Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with:

Answers: Central Bank (RBI)

32. What is the maximum amount per transaction NEFT limit for cash-based remittances to Nepal?

Answers: Rs. 50,000

33. What does CAR stands for?

Answers: Capital Adequacy Ratio

34. IFSC code consists of _____ alpha numeric code.

Answers: 11 digits (The IFSC is an 11 digit alpha numeric code, with the first four digits identifying the bank, fifth is numeric (kept 0) and the last six digits represent the bank branch.)

35. When money is lent or borrowed for one day or on overnight basis it is known as:

Answers: Call Money

36. When money is lent or borrowed for between 2 days and 14 days it is known as:

Answers: Notice money

37. When money is lent or borrowed for a period of more than 14 days, it is known as:

Answers: Term money

38. Treasury Bills and Certificate of Deposit are considered as the ____instruments.

Answers: negotiable money market

39. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a _____.

Answers: Promissory note.

40. What is the upper limit in Public Provident Fund (PPF)?

Answers: Rs. 1.5 lakhs

41. As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders and Banker's Cheques is _____

Answers: 3 months

42. What is the time limit for an asset or loan to be declared as Non-Performing Asset?

Answers: 90 days

43. Deposit Insurance and Credit Guarantee Corporation (DICGC) does not cover:

Answers: Primary co-operative societies

44. RBI measure to liquidate the market:

Answers: Repo rate.

45. Full form of EFT:

Answers: Electronic Fund Transfer

46. Fastest mode of transaction:

Answers: RTGS

47. Alphanumeric code on cheque is known as:

Answers: Indian Financial System Code (IFSC)

48. Bank pays interest on savings account?

Answers: Daily Basis

49. What is the loan limit for education under priority sector for studies abroad?

Answers: Rs. 20 lakh (Loans to individuals for educational purposes including vocational courses upto Rs.10 lakh for studies in India and Rs. 20 lakh for studies abroad are included under priority sector.)

50. RuPay Card is an Indian version of credit/ debit card is launched by which organization:

Answers: NPCI (National Payments Corporation of India)