2. Which of the following is not an organized sector in India?
Correct : D. chits and money lenders
3. Who will settle the grievances of customers of banks?
Correct : D. ombuds men
4. Who introduced the Banking Ombudsmen Scheme?
Correct : A. rbi
5. Which was the firth Bank corporated by the Indians? (1881)
Correct : C. avadh commercial bank(oudh)
6. When was Reserve Bank of India established?
Correct : C. 1935
7. When was Reserve Bank of India Nationalised?
Correct : C. 1949
8. When was Indian Banking Act come into force?
Correct : B. 1949
9. Imperial Banks were amalgamated and changed as _________
Correct : B. state bank of india
10. How many banks were first nationalised?
Correct : C. 14
11. When was the second phase of nationalisation done?
Correct : D. 15th april, 1980
12. Who will act as the banker to the Government of India?
Correct : B. reserve bank of india
13. Where is the Head Quarter of Reserve Bank of India?
Correct : A. mumbai
14. When was Lead Bank Scheme introduced?
Correct : C. 1969
15. The first development financial institution in India that has got merged
with a bank is
Correct : B. icici
16. ……….prepared a framework through a consultative process to secure international convergence of supervisory regulations governing the capital
adequacy of international banks.
Correct : A. basel committee on banking supervision
17. Gilt edged securities refer to
Correct : A. government securities
18. Indian Banks Association (IBA) has a common net working system for
sharing the ATM facilities in Mumbai, which is known as
Correct : B. shared payment network system
19. World Bank stands for
Correct : C. ib
20. Where is the headquarters of SWIFT?
Correct : B. brussels
21. NABARD is a
Correct : D. none of the above
22. Which of the following statement is correct.
Correct : C. foreign exchange markets are dynamic a
23. Who is the Governor of RBI?
Correct : C. raghuram rajan
24. Section 14 of Banking Regulation Act, 1949
Correct : A. prohibits a banking company from creating a charge upon any unpaid capital of the company.
25. A Bank is under a statutory obligations to honour its customer's
cheques vide
Correct : C. section 31 of the negotiable instruments act, 1881.
26. The Reserve Bank of India was originally constituted as a share holder's
Bank with a share capital of --
Correct : D. rs. 5 crores
27. Infrastructure Development Finance Company was established in -
Correct : B. 1997
28. Nationalised Banks have been permitted to offer their equity shares to
the public to the extent of 49% of their capital as per amendments made in 1994 in
Correct : B. banking companies (acquisition & transfer of undertakings) acts 1970/1980
29. EXIM Bank is owned by -
Correct : C. fully own
30. Contribution towards Rural Infrastructure Development Fund is made by
Correct : C. only those commercial banks who fail to achieve the stipulat
31. Credit rationing is a…………method of credit control.
Correct : B. qualitative credit control
32. The development programme began in our country with the launch of
Correct : A. community development programme
33. "Sans recourse" means ____.
Correct : D. without liability to me
34. When a drawer draws a cheque without keeping sufficient balance and if the cheque is bounced for insufficient funds. The drawer is punishable with imprisonment which may extend to and or a fine.
Correct : B. one year
35. The highest credit risk rating that can be awarded to any company by
CRISIL is…..
Correct : B. aaa
36. Bankers, in general, are hesitant to finance HUF because .
Correct : C. the liability of the firm to the banker is susceptible to change with the birth of male chi
37. Factoring means .
Correct : C. purchasing and/or administering the receivables of a concern.
38. Under law of limitation , the liability of a guarantor is .
Correct : C. 3 years from the date when the dema
39. The first bank to be established in India was ________ ,
Correct : B. bank of hindustan
40. Which type of securities are held by Reserve Bank of India before
issuance of currency notes ?
Correct : D. all of these
41. Quasi Negotiable Instrument is accepted like Negotiable Instrument
because of
Correct : B. the customs and practice
42. Loan documents executed out of India must be presented for
registration within……….of its arrival in India.
Correct : B. four months
43. Usance bills or promissory notes drawn out of India are required to be
stamped by
Correct : A. first holder in india
44. Command Area Development Programme relates to __________
Correct : D. irrigation development
45. The minimum percentage of Priority Sector advances to be maintained
by foreign banks in India is .
Correct : C. 32%
46. Margin money scheme of KVIC is applicable to the project of individuals
and entrepreneurs ______________ .
Correct : A. where the total project cost does not exceed rs. 10 lakh
47. "Customer" is defined in -
Correct : D. nowhere it is defined
48. Prospectus is issued by a Private Limited Company when it issues
Correct : D. shares
49. A Public Limited Company should have minimum membership of -
Correct : C. 7
50. Introduction of rating methodology for banks was introduced by RBI on the lines of-
Correct : A. camel
51. In terms of the N.I. Act, finder of a lost cheque is :
Correct : D. holder in due course, in either case
52. The charge created on a security of National Savings Certificate is -
Correct : A. pledge
53. Internet is the cheapest of all banking channels and helps banks to
gain substantially in terms of………….cost.
Correct : D. transaction
54. Drawing power in an account means
Correct : D. stock
55. Lien becomes time-barred three years after
Correct : D. lien has no limitation period
56. Negative lien means -
Correct : A. a declaration by a company not to encumber assets of the company without previous consent of banker
57. Letter of Probate means-
Correct : D. by the court containing the name of the person who has to administer the property of a deceased person
58. Non-registration of a firm will affect in the following manner-
Correct : C. no partner shall be in a position to institute a suit against any other partner of the firm
59. Working Capital Gap means-
Correct : D. total current assets minus current liabilities (other than bank
60. …………… constitute the largest source of funds for the banks
Correct : C. deposit
61. Banker's lien is a type of security.
Correct : C. impli
62. Section 85(1) of the Negotiable Instrument Act 1881 provides protection
to the paying banker in respect of
Correct : A. forged endorsement
63. Collection of cheques for customer is a………….function of bank.
Correct : A. agency function
64. In periods of boom, which leads to economic instability, Reserve Bank
resorts to
Correct : A. sale in the market of first class securities in its possession to reduce the supply of money as a measure of open market operations
65. Under Section 17 of the Banking Regulation Act 1949, every banking
company incorporated in India is required to transfer each year to a reserve fund a sum equivalent to not less than
Correct : C. 25 per cent of profit before dividends;
66. After a customer has closed the account______
Correct : B. the banker is still bound by his duty of secrecy
67. ………….is a new scheme of deposit mobilization have been evolved by
the Indian commercial banks.
Correct : C. insurance link
68. A mandate may continue to be operative even in the case of—
Correct : C. insolvency of the agent
69. ………….is a document issued by the bank acknowledge the receipt of a
fixed sum of money on deposit.
Correct : C. fix
70. A bill should be presented for acceptance in case of insolvency of a
drawee to
Correct : A. official receiver
71. An order instrument can be made payable to the bearer by making
Correct : C. general endorsement
72. The endorser will not liable to the holder on dishonor of a negotiable
instrument if he makes
Correct : A. sans-recourse endorsement
73. Negotiation-back implies
Correct : A. return of the instrument back of he person who indorsed it earlier
74. Once a bearer instrument always a bearer instrument is true in case of
Correct : A. a cheque only
75. ……are treated as negotiable instrument by usage or custom of trade.
Correct : D. hundies
76. The relationship between a banker and its customer is basically that of
Correct : A. a debtor and a creditor
77. The banker's answer in case of dishonor of a cheque on a account of
insufficiency of funds is generally
Correct : A. refer to drawer (rd)
78. The title of the endorsee will not be better than of the endorser in case a
cheque is crossed containing the words
Correct : B. not negotiable
79. Travelers cheques are issue by
Correct : B. commercial banks
80. When a banker accepts the securities for safe custody, the relationship
between a banker and a customer is that of
Correct : B. trustee and beneficiary
81. A right of appropriation first lies with the
Correct : A. debtor
82. The period of limitation in case of deposits with bankers from the date
on which
Correct : C. date of dema
83. Pay order is issued by the banks for
Correct : A. local payments
84. Certificate of Deposit cannot be issued by
Correct : B. regional rural banks
85. The recurring deposit account combine the characteristics of ……….and
fixed deposit account.
Correct : A. savings account
86. The drawee banker of a demand draft has received intimation of the
loss of the draft from the purchaser. The banker should
Correct : B. exercise caution
87. …………..is always drawn on a specified banker.
Correct : D. cheque
88. A customer requests for issue of a bearer demand draft. The banker
should
Correct : C. refuse to issue the draft
89. A and B have jointly hired a locker under "Either or Survivor" caluse.
A dies. The bank should
Correct : A. permit b to operate the locker
90. Pay order is issued by the banks for
Correct : A. local payments
91. When a banker collects a cheque for which he has already given cash,his
position is that of a…………
Correct : D. holder for value
92. Merchant banking includes
Correct : A. managing issue of shares
93. In case of ………….days of grace are allowed
Correct : B. bill of exchange
94. A minor can open and operate an account in his own name if he has
atleast attained the age of
Correct : A. 12 years
95. .The person appointed to operate the account after his death by the
deceased himself before his I death is called
Correct : B. administrator
96. A joint account can be opened by the banker on receipt of application
signed by
Correct : B. all joint account holders
97. A minor cannot
Correct : A. accept a bill
98. .The interest and principle amount of a loan not repaid by a customer in
a bank ,the bank consider such loan as……..