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In this money deposit may be withdrawn by giving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?
NO
30) What is LLP?
Limited liability partnership
31) 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 RWAs
Total capital must be 9% of RWAs.
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 risk
52) 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 months
65) 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 lac
76) 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) Agriculture
b) Msme
c) Education
d) Housing
e) Export.
92) what is FCNR?
Forign currency non resident account. It a term deposit
account in forign currency. It means NRI & PIOs 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.