Banking Awareness Quiz (Miscellaneous)

These Questions of Banking Awareness Quiz has been shared by AK Gupta Sir, Ex- Chief Manager, Punjab National Bank. 

1) A manufacturing enterprise will be classified as small enterprise, if original investment in plant and machinery is up to____.  

a) Rs 10 lakh

b) Rs 25 lakh

c) Rs 2 crore

d) Rs 5 crore

e) None of these

2) Validity period of a cheque is considered as three months  as  per  provisions  of  which  of  the following?  

a) N I Act

b) R B I Act

c) Banking Regulation Act 

d) As per practice

e) As per RBI guidelines 

3) The maximum amount of compensation that can be awarded by an Ombudsman in case of other than Credit Cards is restricted to____.

a) Rs 5 lakh

b) Rs 10 lakh

c) Rs 1 lakh

d) Rs 50 lakh

e) None of these

4) For the purpose of Asset Classification, what is the status of accounts, where outstanding balance in the principal operating account is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date of Balance Sheet or credits are not enough to cover the interest debited during the same period?

a) These accounts should be treated as 'out of order'.

b) These account should be treated as NPA.

c) These accounts will be treated as NPA only if these remain out of order for 6 months.

d) These accounts will be treated as Sub standard.

e) None of these

5) Which of the following accounts can be opened jointly with residents as well as non residents?

a) Non Resident Ordinary

b) Non Resident External

c) Foreign Currency Non Resident Account

d) None of these

e) All of these.

6) In the case of banks, deposits are insured by which of the following?

a) Deposit Insurance Company Ltd.

b) National Deposit Insurance Company Ltd.

c) Deposit Insurance and Credit Guarantee Corporation Ltd.

d) Indian Deposit Insurance Company Ltd.

e) None of these

7) IFSC or Indian Financial System Code is a 11 digit alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. How many characters are alpha and how many characters are numeric in the code?

a) first 4 alpha characters representing the bank, and the last 6 numeric characters representing the branch and 5th character is 0.

b) first 4 alpha characters representing the branch and the last 6 numeric characters representing the bank and 5th character is 0.

c) first 5 alpha characters representing the bank, and the last 6 numeric characters representing the branch.

d) first 5 alpha characters representing the bank, and the last 5 numeric characters representing the branch and 6th character is 0.

e) None of these

8) Which of the following is not decided by RBI?

a) Repo Rate

b) Reverse Repo Rate

c) Bank Rate

d) Inflation Rate

e) MSF

9) Which  of  the  following  concept  has  been implemented with effect from 1st July 2010?

a) Benchmark Prime Lending Rate

b) Base Rate

c) Basis Rate

d) Bank Rate

e) LIBOR

10) Under NEFT, settlement takes place in how many batches on Monday to Friday and in how many batches on Saturdays?

a) 12; 6

b) 6; 3

c) 9; 5

d) 11; 5

e) None of these 

11) Foreign Currency Non Resident (Bank) account can be opened for a maximum period of _____.

a) 1 year

b) 3 year

c) 5 year

d) 7 year

e) None of these

12) Banks are required to reimburse to the customers, the amount wrongfully debited on account of failed ATM transactions within a maximum period of ______.

a) 7 days from the date of receipt of customer complaint.

b) 7 working days from the date of receipt of customer complaint.

c) 7 working days from the date of wrong debit receipt of customer complaint.

d) 12 days from the date of receipt of customer complaint.

e) None of these

13) When advance is granted against Life Insurance Policy, charge is created by way of____.

a) Lien

b) Pledge

c) Hypothecation

d) Assignment

e) Mortgage 

14) What rate of interest can be offered by banks in India on NRO term deposits?

a) As applicable in domestic term deposits.

b) As per Bank discretion.

c) As per Bank discretion subject to the condition that it cannot be higher than those offered by the     bank on comparable domestic rupee deposits.

d) As per RBI.
e) None of these.

15) RBI has advised banks to ensure that demand drafts of _______are issued invariably with account payee crossing.

a) More than Rs 20,000

b) Rs 20,000 and above

c) Rs 50,000 and above

d) More than Rs 50,000

e) None of these

Answers:

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

15. B