Вы находитесь на странице: 1из 35

1. Bank Rate can be defined as: Marks: 2+ 0.

5-
Interest rate payable by banks on deposit
Interest changed by banks on loans & advances
Interest rate charged by RBI on lending to Commercial bank
All the above
The Correct Answer is : Interest rate charged by RBI on lending to Commercial bank
2. Which of the following statements, is correct regarding bank rate? Marks: 2+ 0.5-
interest rate to decide interest rates on deposits by banks
it is a tool of credit control
it attacts money supply
all the above
The Correct Answer is : all the above
3. which of the following statements, is not correct regarding bank rate? Marks: 2+
It has no relation with the interest charged by Banks on loans & advances
Interest on loans & advances is generally higher than the bank rate
Bank rate affects inflation rate
Bank rate can be increased or decreased by the RBI
The Correct Answer is : It has no relation with the interest charged by Banks on loans &
advances
4. Spread can be defined as: Marks: 2+ 0.5-
Difference between interest income & interest expenditure
Total yield on accounts of interest
Profit margin of a bank
Extent of risk on advances
The Correct Answer is : Difference between interest income & interest expenditure
5. At present the bank rate is: Marks: 2+ 0.5-
4.5%
6%
7.5%
6.5%
The Correct Answer is : 6%
6. Bank rate is decided by: Marks: 2+ 0.5-
Indian bank association
Individual commercial bank
Finance ministry
None of these
The Correct Answer is : None of these
7. Which of the following sectors of RBI Act deals with the provision of bank rate policy?
Marks: 2+ 0.5-
Section 49
Section 21
Section 34
Section 42
The Correct Answer is : Section 49
8. Prime lending rate (PLR) is: Marks: 2+ 0.5-
Interst charged to prime borrowers of the bank
It is minimum interest the bank would charge on Borrowed Accounts
It is the optimum rate of interest on loans & advances
All the above
The Correct Answer is : Interst charged to prime borrowers of the bank
9. Prime lending rate is desided by: Marks: 2+ 0.5-
RBI
Indians Bank Association
Prime borrowers of the bank
Individual bank
The Correct Answer is : Individual bank
10. The purpose of maintaining Cash Reserve with RBI by commercial banks is
To provide better liquidity for banking system
To enable commercial banks to meet crises & emergencies
To enable RBI to control the credit
All the above
The Correct Answer is : All the above
11. Which of the following statement, is not correct regarding CRR? Marks: 2+ 0.5-
The minimum CRR is 3% of Bank's demand & time liabilities
b. RBI does not pay any interest on first 3% of CRR amount held with it
RBI is bound to pay interest on cash balance held with it beyond 3% level
The RBI is empowered to increase or decrease the level of CRR
The Correct Answer is : RBI is bound to pay interest on cash balance held with it beyond
3% level
12. Which of the following statements, is correct in respect of incremental CRR?
RBI can impose incremental CRR on demand & time liabilities
Incremental CRR would be in additional to regular CRR
c. Incremental would be applicable only to additional deposits added after a specified date
The system of incremental CRR has been dispensed with
The Correct Answer is : The system of incremental CRR has been dispensed with

13. Which of the following penalities, the RBI can impose as a bank in case it defaults in
maintaining the required CRR? Marks: 2+ 0.5-
It will impose penal interest upto 5% over the bank rate
It can impose a fine on the officer responsible for default
RBI can prohibit the schedule Bank from receiving any fresh deposits
All the above
The Correct Answer is : All the above
14. Which of the following sections of banking regulation act 1949 deals with the pension of
statutory liquidity ratio (SLR)? Marks: 2+ 0.5-
Section 42
Section 24
Section 3b
None
The Correct Answer is : Section 24
15. Statutory Liquidity Ratio (SLR) can be maintained in the following ways:
Cash
Gold
Unencumbered approved securities
All of these
The Correct Answer is : All of these
16. Which of the following statements, is not correct regarding SLR requirement?
The minimum amount of SLR is 25% of demand & time liabilities as at the end of notified
Friday
The RBI can increase the level of SLR upto 40% of demand and time liabilities
RBI uses SLR as an instrument of credit control
Maintenance of SLR does not effect creation capacity of Commercial Bank
The Correct Answer is : Maintenance of SLR does not effect creation capacity of
Commercial Bank
17. Which of the following statements, is correct in respect of maintenance of SLR?
Marks: 2+ 0.5-
Any cash balance with RBI in excess of mandatory requirement under section 42 will be
included as cash for the purpose of SLR
RBI decided the method of valuation of securities for the purpose of SLR
The Narasimha Committee suggested to bring down the level of SLR to 25%
All the above
The Correct Answer is : All the above
18. Which of the following statements, Is correct regarding licensing of a banking company
under Banking Regulation Act 1949? Marks: 2+ 0.5-
It is necessary to obtain a license for opening of Banking company
RBI has powers to cancel the license
The bank may made an appeal with the central government against the decisions of the
RBI
All the above
The Correct Answer is : All the above

19. Which of the following statements is not correct regarding licensing of a Banking
company? Marks: 2+ 0.5-
The financial position of the bank is sound
A banking company having applied for a license may carry on its business
It is not necessary for a foreign bank to obtain licence from RBI
The Correct Answer is : It is not necessary for a foreign bank to obtain licence from RBI

20. Which of the following statements is correct regarding opening of Branch by a Bank?
Marks: 2+ 0.5-
It is necessary for a bank to obtain license from the RBI to open a new branch, change of
location of a branch
It is not necessary for a bank to obtain license if branch is to open for 30 days or less
The place of a Business for the purpose of a bank branch is where deposits are received,
cheques encashed or moneys lent
All the above
The Correct Answer is : All the above
21. Which of the following statements is correct regarding closing of a branch of a Bank?
Marks: 2+ 0.5-
A bank is free to close any of its branch & RBI permission is not required
The loss making branches/non-visible branches can be merged
Bank can not close a rural branch
All the above
The Correct Answer is : All the above
22. Which of the following statements, is correct? Marks: 2+ 0.5-
Banks are required to submit a return of unclaimed deposits under section 26 of banking
regulation Act, 1949
This includes all the accounts which have not been operated upon for ten years
The return of unclaimed deposits is required to be submitted on 31st March of every year
All the above
The Correct Answer is : All the above
23. Which of the following statement is correct Marks: 2+ 0.5-
Reserve Bank has to apply to higher court for winding up of a banking company
The central government can make an order of moratorium for a fraud not exceeding 6
month
The central government has the power to sanction the schemes of amalgamation or
reconstruction prepaid by the RBI
All the above
The Correct Answer is : All the above
24. Which of the following is empowered to make rules regarding preservation of records by
a banking company? Marks: 2+ 0.5-
Central Government
Reserve Bank of India
Indian Bank Association
National Institution of bank management
The Correct Answer is : Central Government

25. What is the duration of preserving records of Books & Accounts by Banking Company?
Marks: 2+ 0.5-
5 Years
10 years
13 Years
12 years
The Correct Answer is : 13 Years

26. What is nomination Marks: 2+ 0.5-


A facility given to depositors by the Government
It confers a right to the nominee to receive payment of a deposit after death of depositors
It is a process of appointing legal heir by the depositors
It is a part of will on behalf of a depositor
The Correct Answer is : It confers a right to the nominee to receive payment of a deposit
after death of depositors
Marks: 2+ 0.5-

27. Which of the following is correct in relation to nomination Nomination can be made
by a depositor or joitly with other depositors
A minor can also be nominated as the nominee
A nominee is entitled to receive payment of the deposit only after the death of depositor
or all the depositors
All the above

28. Which of the following statements is not correct regarding nomination?


Two or more persons can be nominated by a depositor or group of depositors
A bank will have a full discharge of its liability if it makes the payment to the nominee
Bank is not obliged to receive any notice of claim from any other person other than the
depositors
The bank will take due notice of any order or certificate from competent jurisdiction to
deposits where nominee is appointed
The Correct Answer is : Two or more persons can be nominated by a depositor or group of
depositors
29. Which of the following statements is correct regarding nomination? Marks: 2+ 0.5-
Nominee can be appointed for the safe custody articles
A minor nominee shall have to be represented by a major person
The nomination can be cancelled by the depositor
All the above
The Correct Answer is : All the above

30. Which of the following statements, is correct regarding nomination? Marks: 2+


Two or more hirers of a locker with joint signatures may nominate one or more persons as
nominee who may have access to the locker
Even a minor can appoint a nominee but a major person has to sign on its behalf
If the nominee dies before the death of the depositors, the nomination automatically
terminates
All the above
The Correct Answer is : All the above
31. Which of the following agencies, is empowered to frame rules specifying the period of
preservation of records & instruments by a banking company?records & instruments by a
banking company? Marks: 2+ 0.5-
Reserve bank of India
Central government
Competent court
India Bank Association
The Correct Answer is : Central government
32. Which of the following statement, is correct? Marks: 2+ 0.5-
A paid instrument can be returned by a bank on the request of a customer
The request should be received within prescribed preservation period
The bank should keep a true copy of the instrument made by mechanical process at the
cost of the depositor
All the above
The Correct Answer is : All the above
33. RBI approval is required for appointment of a chairman of a bank Which of the following
statements, is correct? Marks: 2+ 0.5-
RBI approval is required for appointment of a chairman of a bank
RBI is empowered to remove top managerial personnel of a bank
RBI may appoint suitable person in place of the person so removed
All the above

The Correct Answer is : All the above


34. Which of the following statement, is correct? Marks: 2+ 0.5-
RBI is empowered to conduct security of the affairs of the banking company in addition to
conducting regular inspection
RBI can conduct inspection of any Banking company & its Books of Accounts
Based on recommendations of the RBI, the central government may prohibit banking
company from receiving fund deposites
All the above
The Correct Answer is : All the above
35. What are the powers of RBI under section35A of the Banking Regulation Act 1949 for
issuing directions to Bank? Marks: 2+ 0.5-
To issue directions in the public interest or in the interest of Banking policy
To prevent affairs of banking company if it is detrimental to the interests of depositors
To secure the proper management of any banking company
All the above
The Correct Answer is : All the above
36. Which of the following orders, the RBI may pass when the affairs of a banking company
are detrimental to the interest of public? Marks: 2+ 0.5-
To call any officer of the Bank to discuss the matter with RBI officials
b. RBI may depute its officer to watch the proceedings at any meeting of the Board of
Directors
To instruct Banking company to make within specified time the changes in the
management
All the above
The Correct Answer is : All the above
37. Which of the following orders, the RBI may pass when the affairs of a Banking company
are detrimental to the interest of the public? Marks: 2+ 0.5-
To determinate the policy in relation to advances to be followed by Banking companies
To decide the purpose for which advances may or may not be made
To fix margin to be maintained in respect of securd advances
All the above
The Correct Answer is : All the above
38. Which of the following statement, is correct? Marks: 2+ 0.5-
The RBI may decide the maximum amount of advances which a Bank may provide to one
company or firm or individual
RBI may advice the bank for which maximum amount of guarantee may be given to any
one company or firm
RBI is empowered to determine other terms & conditions to be followed by a Banking
company while considering the loans & Advances
All the above
The Correct Answer is : All the above
39. Which of the following statements, iscorrect? Marks: 2+ 0.5-
RBI may decide interest rate to be charged by a Bank on individual loans
Margin amount on secured loans can be decided by the RBI
RBI may stipulate norms for the banks for the commission to be charged on guarantee
Maximum amount of loan which can be considerd by a bank to a single party having
regard to the paid up capital, Reserves & Deposits of the
The Correct Answer is : RBI may decide interest rate to be charged by a Bank on
individual loans
40. Which of the following statements, is correct regarding rate of interest on loans &
advances: Marks: 2+ 0.5-
Individual Banks are free to determine the interest rates on loans and advances
The bank may vary the intrest rates are among different parties for the similar kind of
loans
Interest charged by the bank to the debtor shall not be re-opened in a court
All the above
The Correct Answer is : All the above
41. Which of the following statements is notcorrect in connection with interest on loans &
advances? Marks: 2+ 0.5-
The bank may waives the part or full of interest charged to a borrower
The basnk has liberty to provide interest free loan to a borrower
In case the interest charged by the bank is not inconfirmity with the rate prescribed by the
RBI, the court may disallow such excess interest
The bank can charge the interest below the prime lending rate
The Correct Answer is : The basnk has liberty to provide interest free loan to a borrower
42. The social control on banking companies was imposed on: Marks: 2+ 0.5-
1.2.1969
31.12.1968
1.7.1968
19.11.1968
The Correct Answer is : 1.2.1969
43. 14 major commercial banks were nationalized on: Marks: 2+ 0.5-
1.7.1969
19.7.1969
1.1.1969
1.4.1969
The Correct Answer is : 19.7.1969
44. The social control was imposition of additional control on private sector banks in term of:
Marks: 2+ 0.5-
Determining priorities in lending & investments
Evolving guidelines for the management
Promoting re-orientation of the decision making machinery
All the above
The Correct Answer is : All the above
45. Which of the following is not a public sector bank? Marks: 2+ 0.5-
All nationalized bank
State bank of India & its Associates
Newly incorporated banks like ICICI bank
Regional Rural Banks
The Correct Answer is : Newly incorporated banks like ICICI bank

46. Which of the following Banks' undertaking was taken over by State Bank of India
Imperial Bank of India
Bank of Bengal
Presidency Bank
None of These
The Correct Answer is : Imperial Bank of India
47. The State Bank of India was nationalized in: Marks: 2+ 0.5-
1964
1961
1965
1955
The Correct Answer is : 1955
48. How many Banks were nationalized in the second phase? Marks: 2+ 0.5-
6
10
7
4
The Correct Answer is : 6
49. The 6 private Commercial Banks were nationalized on: Marks: 2+ 0.5-
4.9.1972
31.12.1975
30.6.1977
30.6.1977
The Correct Answer is : 30.6.1977
50. What was the deposite criteria of 14 Banks nationalized on 19th July 1969?
Rs. 1000 Crore
Rs. 500 Crore
Rs. 100 Crore
Rs. 50 Crore
The Correct Answer is : Rs. 50 Crore
51. The first Act of Bank Nationalisation of 14 Banks was passed in: Marks: 2+ 0.5-
1969
1970
1967
1968
The Correct Answer is : 1969
52. Which of the following Acts, is now applicable to 14 nationalised Banks?
The banking companies (Acquisition and transfer of undertakings) Act, 1969
The banking companies (Acquisition and transfer of undertakings) Act, 1970
The banking companies (acquisition and transfer of undertakings) Act, 1980
All the above
The Correct Answer is : The banking companies (Acquisition and transfer of undertakings)
Act, 1970
53. Which of the following nationalized banks re-named? Marks: 2+ 0.5-
United Bank of India
United Commercial Bank
Union Bank of India
Dena Bank
The Correct Answer is : United Commercial Bank
54. How many members can be nominated as Board of Directors on the Board of a Ban
Marks: 2+ 0.5-
11
13
12
15
The Correct Answer is : 15
55. What is the maximum number of whole time Directors in a Bank? Marks: 2+ 0.5-
2
3
1
4
The Correct Answer is : 2
56. The whole time Directors are appointed by: Marks: 2+ 0.5-
Reserve Bank of India
Central government in consultation with RBI
Individual Bank
All the above
The Correct Answer is : Central government in consultation with RBI
57. The maximum duration of appointment of Directors other than the whole time Directors
would be: Marks: 2+ 0.5-
1 Years
2 Years
3 Years
5 Years
The Correct Answer is : 3 Years
58. Which of the following statements, is correct? Marks: 2+ 0.5-
The duration of a Bank can be appointed for a maximum period of five years
The period of appointment can be extended
Once a Director ceases to be a Director is not eligible for re-appointment as Director in the
same Bank for a period of 4 Years
All the above
The Correct Answer is : All the above
59. Which of the following disqualifies a person to become a chairman of a Bank? If a
person is a Dirctor of another company opther than a subsidiary of a Bank
If a person has substantial interest in another company or the firm
If a person is engaged in any other business or vocation
All the above
The Correct Answer is : All the above
60. What is the minimum number of board meetings to be held in a year by the Bank?
Marks: 2+ 0.5-

12
8
6
4
The Correct Answer is : 6
61. What is the minimum quorum for the board meeting? Marks: 2+ 0.5-
50% of the total strength of Directors
One-third of the number of Directors present on the day subject to a minimum of 3
One-third of the total strength of dDirectors
No such condition
The Correct Answer is : One-third of the number of Directors present on the day subject to
a minimum of 3
62. In the second phase of Banks' notanalisation, 6 more Banks were nationalized on:
Marks: 2+ 0.5-
31.12.1974
31.03.1975
01.01.1980
15.04.1980
The Correct Answer is : 15.04.1980
63. Which of the following was the criteria for nationalization of 6 private sector banks in
1980? Marks: 2+ 0.5-
A minimum capital of Rs. 100 crore
A minimum of Rs. 200 crore Demand and time liabilities
A bank with a minimum of Rs. 200 crore assets
None of the above
The Correct Answer is : None of the above
64. The nationalized New Bank of India was later merged with: Marks: 2+ 0.5-
Central Bank of India
Bank of Baroda
Punjab National Bank
Canara Bank
The Correct Answer is : Punjab National Bank
65. What is the total number of public sectorBanks as now? Marks: 2+ 0.5-
19
20
27
28
The Correct Answer is : 28
66. The authorized capital of a nationalized bank is: Marks: 2+ 0.5-
Rs. 1500 Crore
Rs. 1000 Crore
Rs. 500 Crore
Rs. 5 lac
The Correct Answer is : Rs. 1500 Crore
67. Which of the following statements, is correct regarding capital of a nationalized bank?
Marks: 2+ 0.5-
The authorized capital may be raised Rs. 3000 Crore
The capital can not be reduced below the level of Rs. 1500 crore
Government share of the paid up capital can not be less than 51 percent
All the above
The Correct Answer is : All the above
68. Which of the following statements, is notcorrect? Marks: 2+ 0.5-
The nationalized Banks may go to public to raise capital
Public sector Banks can raise foreign equity upto 49 per cent
Private sector Banks can raise capital from the public
Regional Rural Banks can not raise from the public
The Correct Answer is : Public sector Banks can raise foreign equity upto 49 per cent
69. Which of the following norms are applicable to a new private sector bank? Marks: 2+
0.5-
A minimum capital of Rs. 300 crore and net of Rs. 300 crore
Foreign Equity upto 74%
c. They can open the Branches including urban and metropolitan centres without
permission from the RBI
All the above
The Correct Answer is : All the above
70. Which of the following statements, is correct regarding the operations of new private
sector banks? Marks: 2+ 0.5-
They will make full use of automation
They need to achieve priority sector target of 40% of the net bank credit
They will not be allowed to set up any subsidiary or mutual fund for atleast 3 years after
its establishment
All the above
The Correct Answer is : All the above
71. The capital adequacy norms in banks were introduced in: Marks: 2+ 0.5-
April 1991
March 1992
April 1992
July 1992
The Correct Answer is : April 1992
72. Capital adequacy ratio is the ratio of: Marks: 2+ 0.5-
Capital as compared to total Deposites
Capital as compared to total Advances
Capital as compared to total Assets
Capital as compared to Risk Adjusted Assets
The Correct Answer is : Capital as compared to Risk Adjusted Assets
73. Which of the following is correct regarding Capital Adequecy ratio? Marks: 2+ 0.5-
The objectivce of Capital Adequancy is to strength the financial stability of banks
Capital is divided into two tiers, tier I and tier II
Assets are assigned risk weight from 0-100 based on intensity of risk
All the above
The Correct Answer is : All the above
74. The banks are required to achieve a minimum Capital Adequecy ratio by March 5 which is
prescribed as: Marks: 2+ 0.5-
6 Per cent
8 Per cent
9 Per cent
10 Per cen
The Correct Answer is : 10 Per cen
75. The concept of capital Adequacy in banks was introduced by: Marks: 2+ 0.5-
Narasimham Committee
Basle Committee
Reserve Bank of India
Ministry of Finance
The Correct Answer is : Basle Committee
76. Which of the following is accounted for tier I Capital of a Bank? Marks: 2+ 0.5-
Paid up Capital
Statutory Reserve
Disclosed Free Researve & Capital Reserves arising out of sale of assets
All the above
The Correct Answer is : All the above
77. Which of the following is accounted for Tier-II Capital of a Bank? Marks: 2+ 0.5-
Undisclosed Reserve
Revalution eserve and general provisions
Hybrid debt capital instrument and subordinated debt
All the above
The Correct Answer is : All the above
78. Which of the following ratio of Capital Adequecy ratio is prescribed for Indian Banks which
have branches abroad? Marks: 2+ 0.5-
9 percent
10 percent
12 percent
15percent
The Correct Answer is : 12 percent
79. Which of the following statements, is not correct regarding Risk Weighted Assets?
Marks: 2+ 0.5-
Cash balance with RBI and other Banks and money at call and short notice carry zero risk
weight
Staff loans should be assigned 100 per cent risk weight
Forest open position should have 100 per cent risk weight
Government guaranted advances have zero risk
The Correct Answer is : Government guaranted advances have zero risk
80. The government guaranted advances should have the following risk: Marks: 2+
20%
50%
100%
It should have same risk weight as in the case of other advances
The Correct Answer is : It should have same risk weight as in the case of other advances
81. The 'CAMELS' Rating for banks was recommended by: Marks: 2+ 0.5-
Narasimha Committee
Padmanabhan Committee
Nayak Committee
Rangrajan Committee
The Correct Answer is : Padmanabhan Committee
82. What is the concept of 'CAMELS' Rating? Marks: 2+ 0.5-
It deals with expansion of Banks by RBI
It is a methiod of performance evalution of banks
It is the process of internal audit
All the above
The Correct Answer is : It deals with expansion of Banks by RBI
83. Which of the following is not included in 'CAMELS'? Marks: 2+ 0.5-
Capital adequacy and assts Quality
Management and Earning Performance
Employees Performance
Liquidity and system
The Correct Answer is : Employees Performance
84. Which of the following ratings are provided in 'CAMELS' Approach? Marks: 2+ 0.5-
A to E
A,B.C
A&B
A to D
The Correct Answer is : A to E
85. Which of the following Rating Approach is applicable to foreign banks operating in India?
Marks: 2+ 0.5-
CAMELS
CAMEL
CAMEL
CACE
The Correct Answer is : CAMEL
86. Which of the following statements, is correct regarding CAMELS Approach?
The banks have been classified into two categories for the purpose of Rating
For the Rating of Foreign banks compliances with regulatory guidelines is significant
The Reserve Bank of India is the authority to decide Ratings
All the above
The Correct Answer is : All the above
87. Which of the following supervision systems was implemented by RBI in the year 2002-
03? Marks: 2+ 0.5-
Risk Based Supervision
Financial strength supervision
Monetary and credit supervision
Overall bank management supervision
The Correct Answer is : Risk Based Supervision
88. The risk based supervision in the banks was implemented by reserve bank of India in:
Marks: 2+ 0.5-
First quarter of financial year 2002-2003
Last quarter of financial year 2002-2003
Financial year 2002-2003
None of the above
The Correct Answer is : Last quarter of financial year 2002-2003
89. Which of the following is included in Risk Based Supervision of Banks by the RBI?
It is essential on site inspection driven
The inspection are conducted with references to Balance sheet dates
Supervisions follow-up commences with the detailed findings of annual financial inspection
All the above
The Correct Answer is : All the above
90. What are the important features of new approach of Risk based supervision of banks?
Marks: 2+ 0.5-
Optimum utilistion of supervisory resources
To minimize impact of crises situation in the financial system
It involves continues monitoring and evalution of the risk profiles
All the above
The Correct Answer is : All the above
91. The efficiency and success of risk based supervision in Banks depend on:
Quality and reliability of data
Sound system and technology
Appropriate risk control mechanism
All the above
The Correct Answer is : All the above
92. In what way Risk Based Supervision is better than CAMELS approach? Marks: 2+
Effective use of supervisory resources
Cushion against Risks
Focused attention on weak Banks
All the above
The Correct Answer is : All the above
93. Which of the following is not major element of Risk Based Supervision approach?
Risk profiling of Banks
Monitorable Action plan (MAP)
Risk weighted assets
Role of External Auditors in Banking supervision
The Correct Answer is : Risk weighted assets
94. What does a risk profile contain? Marks: 2+ 0.5-
Financial & non-financial risks
Risks are categorized as financial and non-financial risks
(a) and (b) both
none of the above
The Correct Answer is : (a) and (b) both
95. Business risks in Risk Based Supervision are Marks: 2+ 0.5-
Capital and credit risk
Market risk
Liquidity risk
All the above
The Correct Answer is : All the above
96. Which of the following is not Business Risk under Risk Based super-vision?
Bussineess strategy and environment Risk
Operational risk
Operational risk
Group risk
The Correct Answer is : Operational risk
97. The control risks are: Marks: 2+ 0.5-
Internal central Risk
Organisation Risk
Management isk & Compliance Risk
All the above
The Correct Answer is : All the above
98. In how many areas assessment is to bemade under Risk Based Supervision
12
8
4
10
The Correct Answer is : 12
99. The level of risk can be determined as Marks: 2+ 0.5-
Low
Moderate
Fair or High
All the above
The Correct Answer is : All the above
100. The direction of the Risk under Risk basedAssets can be: Marks: 2+ 0.5-
Increasing
Decreasing
Stable
Any one of the above
The Correct Answer is : Any one of the above
101. What are the various sources of information to assess the Risk Profiling
Market intelligence reports
Adhoc data from external and internal auditors
On site findings
All the above
The Correct Answer is : All the above
102. What is the normal supervisory cycle under Risk Based supervision process? 3
months
6 months
12 months
12 months
The Correct Answer is : 12 months
103. Which of the following areas Monitarable Action Plan (MAP) of RBI would include?
Marks: 2+ 0.5-
Improvement areas identified during the current on site and off site supervisory process
Accountability of key individuals of the bank
Sanction and penalties to Banks for not meeting the monitorable action plan
All the above
The Correct Answer is : All the above
104. Which of the following statements, is correct regarding Risk Based supervision of RBI?
Marks: 2+ 0.5-
The risk profile would focus on high risk areas
The RBI will have effective review, evalution and follow-up of the risk profile of the
concerned bank
The focal point of contacts for all banks would be central office of RBI and its Regional
offices
All the above
The Correct Answer is : All the above
105. Which of the followingneeds focus tochange management implications under Risk based
supervision? Marks: 2+ 0.5-
Setting up of risk management architecture
Adoption of risk focused internal audit
Setting up of a compliances unit at head office
All the above
The Correct Answer is : All the above
106. In which year's monetary policy the scheme of risk based supervision was announced by
the RBI? Marks: 2+ 0.5-
2000-01
2001-02
1999-2000
2002-03
The Correct Answer is : 2000-01
107. What are the major objectives of credit policy? Marks: 2+ 0.5-
To control money supply
To monetary flow of credit
To attain full employment and maintain price stability
All the above
The Correct Answer is : All the above
108. Which of the following are the assumptionsfor neutral money? Marks: 2+ 0.5-
The quantity of money has no effect on the prices
When money becomes neutral price of the product will depend on productive power of the
economy
Neutral money policy implies that monetary authorities should not change supply of
money in response to changes I the supply of goods
All the above
The Correct Answer is : All the above
109. Which of the following formulates monetary and credit policy Marks: 2+ 0.5-
Reserve Bank of India
Ministry of Finance
Ministry of Commerce
Indian Banks Association
The Correct Answer is : Reserve Bank of India
110. What does a credit policy generally contain? Marks: 2+ 0.5-
Any changes in the bank rate and interest rate
Sectorwise priorities of credit allocation
Reserve requirements of the bank
All the above
The Correct Answer is : All the above
111. Which of the following credit policy does not contain? Marks: 2+ 0.5-
Fiscal Concessions
Margin Requirements
Selective Credit Control Measurs
Open market operations
The Correct Answer is : Fiscal Concessions
112. which of the following statements, is correct regarding credit policy? Credit
policy is announced twice a year
Policy announced in the month of April is called Busy season credit policy
Policy announced in the month of October
All the above
The Correct Answer is : All the above
113. One of the objectives of monetary policy is to maintain exchange stability because:
Marks: 2+ 0.5-
It is necessary for smooth international trade
Exchange fluctuations lead to lack in confidence in a particular currency
Any Fluctuation in the exchange rate has direct effect
All the above
The Correct Answer is : All the above
114. In which of the following areas monetary and credit policy helps? Marks: 2+ 0.5-
Efficient Payment Mechanism
Adequate money supply
Expansion of Finacial system
All the above
The Correct Answer is : All the above
115. Which of the following statements, is not correct? Marks: 2+ 0.5-
Monetary policy has facilited growth of financial institutions
Monetary policy has resulted in widening the gaps between rich and poor
Monetary policy has improved the balance of payment position
Credit policy has been instrumental in the increased savings rate
The Correct Answer is : Monetary policy has resulted in widening the gaps between rich
and poor
116. What is open market operations being conducted by the Reserve bank of India? It is
a process of buying and selling govt. securities by the RBI on behalf of the government
It has direct impact on cash base of the commercial bank
Both (a) and (b)
None of the above
The Correct Answer is : Both (a) and (b)
117. What happens when Reserve Bank of India sells govt. securities under open market
operations Marks: 2+ 0.5-
The extra money soaks up with the bank
It has multiplier effect in reducing money supply
Interest rates go up
All the above
The Correct Answer is : All the above
118. What are the consequences of buying govt. securities by the RBI under open market
operations? Marks: 2+ 0.5-
It adds to the stock of money in the economy
The banks can lend more
The extra liquidity has the power to push down interest rates
All the above
The Correct Answer is : All the above
119. Which of the following statements, is correct regarding open market operations?
The RBI buys securities when the economy is sluggish and demand is not picking up
RBI sells securities when the economy is over heated
Open market operations are used seasonally to heat up or cool off the economyBI sells
securities when the economy is over heated
All the above
The Correct Answer is : All the above
120. What is Repo? Marks: 2+ 0.5-
It is a method of borrowing against certain securities for a short period
The borrower undertake a commitment to purchase back the same securities after
specified period at predetermined price
The difference between the two prices is treated as interest
All the above
The Correct Answer is : All the above
121. What is Reverse Repo? Marks: 2+ 0.5-
It is process where lender levels against the securities with a commitment to take back the
securities from the borrower against payment at a specified price
Revcerse Repo is helpful in contracting liquidity in the system
It is an opposite practice to Repo
All the above
The Correct Answer is : All the above
122. Under Interim Liquidity adjustment Facility was managed through Marks: 2+
Repos
Collatarate lending facility
Open market operations
All the above
The Correct Answer is : All the above
123. Liquidity Adjustment Facility was launched on: Marks: 2+ 0.5-
June 5, 2000
July 1,2000
April 1, 2000
July 15, 2000
The Correct Answer is : June 5, 2000
124. What are the important features of theuidity Adjustment Facility? Marks: 2+ 0.5-
It is a process of variable reverse repo auctions
Collaterised liquidity facility to primary dealers have been replaced by variable rate
reverse repo auctions
Liquidity adjustment facility will be operated at different timings of the same day
All the above
The Correct Answer is : All the above
125. What are the important features of theLiquidity Adjustment Facility? Marks: 2+
It affects liquidity in the system
Interest rates have been stabilized
It provised scope for more participants
All the above
The Correct Answer is : All the above
126. Which of the following statements, iscorrect? Marks: 2+ 0.5-
Repo rate is an overnight rate
Repo rate is considered as the floor rat for all the call rates
When market liquidity is easy, RBI receives heavy bids for repo auctions
All the above
The Correct Answer is : All the above
127. What are the main benefites Liquidity Adjustment Facility (LAF)? Marks: 2+ 0.5-
LAF is the quantum of adjustment
The interest rates are flexible
It helps to meet day to day liquidity mismatch in the system
All the above
The Correct Answer is : All the above
128. What are the consequences of cash reserve requirements? Marks: 2+ 0.5-
It effects the multiplier effect of the Banking System
Higher the Reserve Ratio, lower the multiplier effect
Lower the multiplier effect, lesser the money supply in the system
All the above
The Correct Answer is : All the above
129. Selective credit control is a process where: Marks: 2+ 0.5-
RBI selects certain commodities for controlling the flow of credit
RBI puts different credit controls
Those industries which are sensitive to inflationary pressures are selected
All the above
The Correct Answer is : All the above
130. What are the features of selective creditcontrol? Marks: 2+ 0.5-
They distinguish between essential and non-essential uses of Bank credit
Only non-essential uses are brought under the scope of Credit Bank controls
They effect not only the lenders but also the borrowers
All the above
The Correct Answer is : All the above
131. Which of the following is not correct regarding selective credit control Bank loans
extended to speculators to hoard goods will lead to inflation
Bank credit to consumers to raise demand for durable consumer goods will also lead to
inflation
The commodities are selected at random
Selective credit controls are used to control inflationary pressure
The Correct Answer is : The commodities are selected at random
132. Which of the following statements, is correct regarding margin money requirements?
Marks: 2+ 0.5-
The reserve Bank may increase or decreas the margin money
Higher margin money will reduce the amount of loan
It is an effective method of controlling credit
All the above
The Correct Answer is : All the above
133. Which of the following agencies canexercise selective credit control? Marks: 2+
Ministry of finance
Banking company itself
Reserve bank of India
None of these
The Correct Answer is : Reserve bank of India
134. What are the main factors which influence Reserve Bank's decision of credit control?
Marks: 2+ 0.5-
Public Interest
Depositors interest
In the interest of Banking Policy
All these
The Correct Answer is : All these
135. What are the main instruments of selective credit control? Marks: 2+ 0.5-
Minimum margins for lending against selected commodities
Ceiling on the levels of credit
Changing minimum rate of interest on advances against specified commodities
All the above
The Correct Answer is : All the above
136. The major sensitive commodities are: Marks: 2+ 0.5-
Foodgrains
Sugar and oilseeds
Vegetable oil
All these
The Correct Answer is : All these
137. The major controls which RBI can impose in case of selective commodities include:
Marks: 2+ 0.5-
Restriction on credit
Non-discount of bills
Non-issue of guarantees
All these
The Correct Answer is : All these
138. In which of the following commodities, theRBI imposed selective credit control for the
first time in1956? Marks: 2+ 0.5-
Whaet
Paddy and oilseeds
Oilseeds
Sugar
The Correct Answer is : Paddy and oilseeds
139. Which of the following commodities, is not covered under selective crditr control?
Marks: 2+ 0.5-
Raw Jute
Cotton and textiles
Vegetables
Synthetics textiles
The Correct Answer is : Vegetables
140. Regulation on consumer credit includes: Marks: 2+ 0.5-
Incresed margin in Bank loans on durable articles
Reduction in repayment schedule of bank loans
Both (a) and (b)
all the above
The Correct Answer is : Both (a) and (b)
141. The direct action of RBI may involve thefollowing: Marks: 2+ 0.5-
Prohibit a particular bank against entering into a particular transaction
RBI may charge penal interest on money borrowed by banks
RBI may strictly warn a particular Bank for not complying the selective crdit control norms
All the above
The Correct Answer is : All the above
142. What does moral suasion imply? Marks: 2+ 0.5-
It is a kind of presentation and request made by RBI on commercial Banks
RBI may issue certain guidelins to be followed during a particular period
RBI may advise to provide favourble conditions for Bank credit in the period of business
recession
All the above
The Correct Answer is : All the above
143. What are the implications of moral suasion? Marks: 2+ 0.5-
It has only psychological advantage
It has no legal sanction
It may be or not be an effective tool
All the above
The Correct Answer is : All the above
144. Rationing of credit is: Marks: 2+ 0.5-
A process of controlling and regulating the purpose of credit
Where RBI can put variable portfolio ceilings fixing maximum amount of loan for a Bank
Where RBI cqan put variable capital asset ratio i.e., the ratio of total assets to capital of
the Bank
Any one or all the above
The Correct Answer is : Any one or all the above
145. Which of the following statements, is correct regarding rationing of credit?
RBI fixes ceiling for specific categories of loans to a bank
It rationing of credit is done to the amount, it is called quantitative control
It rationing of credit is done for specific types of credit, it is quantitative control
All the above
The Correct Answer is : All the above
146. Which of the following are measures ofselective credit control? Marks: 2+ 0.5-
Margin requirement
Regulation of consumer credit
Direct Action by RBI
All these
The Correct Answer is : All these
147. Which of the following is not a measure of selective credit control? Marks: 2+
Moral suasion
Bank rate policy
Rationing of credit
Decision on purpose of lending
The Correct Answer is : Bank rate policy
148. What are the major constraints of selective credit control? Marks: 2+ 0.5-
Non-Banking sources of credit may adversely affect very purpose of selective credit control
Banks may not reflect true position for which purpose the loan is granted
Banks have no control to strictly ensure that loan proceeds have been used for the
purpose for whoich, it is availed
All the above
The Correct Answer is : Banks may not reflect true position for which purpose the loan is
granted
149. Which of the following is the limit of investment in plant and machinery for SSI sector?
Marks: 2+ 0.5-
Rs. 10 lac
Rs. 50 lac
Rs. 100 lac
Rs. 300 lac
The Correct Answer is : Rs. 100 lac
150. Which of the following are the targets fordifferent categories of priority sector?
Overall target 40% of net Bank credit
Agriculture loans (direct and indirect) 18%
Priority sector target for foreign Banks is 32%
All the above
The Correct Answer is : All the above
151. What is the sub-target to weaker sections made priority sector/ Marks: 2+ 0.5-
5%
10%
20%
25%
The Correct Answer is : 10%
152. Which of the following is the limiforHomeloans in rural and semi-urban areas for the
purpose of priority sector advances? Marks: 2+ 0.5-
Rs. 2 lac
Rs. 5 lac
Rs. 15 lac
Rs. 25 lac
The Correct Answer is : Rs. 15 lac
153. Which of the following articles does not fallunder priority sector? Marks: 2+ 0.5-
Education loans
Micro credit to Self help groups
Teachers loan
Loan to software Industry
The Correct Answer is : Teachers loan
154. What is the maximum credit limit for which loan can be sanctioned to software industry
under the priority sector? Marks: 2+ 0.5-
Rs. 100 lac
Rs. 50 lac
Rs. 10 lac
Rs. 7.5 lac
The Correct Answer is : Rs. 100 lac
155. Up to which of the following limits loan granted to Small Scale service Business
Enterprises for instrument in fixed assets excluding lend and building are treated as priority
sector: Marks: 2+ 0.5-
Rs. 10 lac
Rs. 25 lac
Rs. 100 lac
Rs. 300 lac
The Correct Answer is : Rs. 10 lac
156. Which of the following conditions should be fulfilled by a business Enterprises providing
any service under priority sector loans? Marks: 2+ 0.5-
The original cost of equipment does not exceed Rs. 20 lac with a working capital limit of
Rs. 10 lac or less
The aggregate of term loan and working capital should not exceed Rs. 20 lac
a) and (c) both
(a) or (b) of the above
The Correct Answer is : a) and (c) both
157. Which of the following is correct regarding loans to professional and self employed
under the priority sector? Marks: 2+ 0.5-
Total borrowings should not exceed Rs. 10 lac of which working capital not to exceed Rs. 2
lac
For qualified medical practitioners, total borrowings should not exceed Rs. 15 lac where
working capital of Rs. 3 lac
(a) and (b) of the above
Only (a) of the above
The Correct Answer is : (a) and (b) of the above
158. Which of the following is applicable for sub-targets under SSI advances? 40% of SSI
advances should be granted to cottage industries tiny units with investment in plant and
machinery up to Rs. 5 lac
20% of total credit to SSI should be provide to units where investment in machinery and
plant is between Rs. 5 lac to Rs. 25 lac
40% of total SSI credit to the units where investment I machinery and plant exceed Rs. 25
lac
all the above
The Correct Answer is : all the above
159. which of the following norms are applicable to loans under DIR scheme?
A minimum of one percent of total lendings in the previous year should be lent under DIR
scheme
Of the total DIR loans, 40% should go to SC/STS
2/3 of total DIR loans should be extended I rural and semi-urban areas
all the above
The Correct Answer is : all the above
160. Which of the following statements, is correct regarding priority sector advances by
foreign Banks? Marks: 2+ 0.5-
Foreign Banks have to achieve 32% advances under priority sector
Export finance by a Foreign Bank would be treated as priority sector
Foreign Banks to lend a minimum of 10 per cent of net Bank credit to each SSI and export
credit
All the above
The Correct Answer is : All the above
161. Which of the following guidelines are applicable in connection with shortfall in lending to
priority sector? Marks: 2+ 0.5-
An equivalent amount of shortfall under agriculture sector should be invested with RIDF
Any shortfall in achieving sub-target under SSI sector, an equivalent amount should be
invested with SIDBI
Interest of RIDF investment is payable at 40%
All the above
The Correct Answer is : All the above
162. Which of the following agencies maintain RIDF (Rural Infrastructure Development
Fund)? Marks: 2+ 0.5-
Ministry of Rural development
Reserve Bank of India
NABARD
SIDBI
The Correct Answer is : NABARD
163. Weaker sectors include: Marks: 2+ 0.5-
Small and Marginal farmers
Lendless labourers tenant, farmers, artisans and village and cottage industries where
credit limit does not exceed Rs. 25000
Beneficiaries under SGSY, SJSRY, SLRS
All the above
The Correct Answer is : All the above
164. Which of the following constitute priority sector advances? Marks: 2+ 0.5-
Advances upto Rs. 25 lac granted for financing of distribution of agriculture inputs
Entire amount of refinance provided by the Sponsor Bank to RRB
Securised assets relating to SSI
All the above
The Correct Answer is : All the above
165. Reserve Bank of India is: Marks: 2+ 0.5-
An exctensio wing of Ministry of Finance, Govt. of India
A body corporate having perpetual succession and a common seal
An institution owned by Indian Banks Association
A private sector company
The Correct Answer is : A private sector company
167. The reserve Bank of India was set up in Marks: 2+ 0.5-
1935
1934
1938
1940
The Correct Answer is : 1935
168. The RBI was brought into the ownership of government through RBI Act, 1948 in:
Marks: 2+ 0.5-
1948
1949
1950
1951
The Correct Answer is : 1949
169. The RBI can be defined as: Marks: 2+ 0.5-
A lender at the last resort
A bank which controls credit slow in the economy of the country
A custodian of Commercial Bank's Cash Reseaves
All of the abov
The Correct Answer is : All of the abov
170. In which the following year, therecommendation of establishment of RBI mad
1926
1928
1931
1933
The Correct Answer is : 1926
171. Which was the following commission recomended for establishment of Researve Bank of
India? Marks: 2+ 0.5-
Central Banking Commissio
Hilton young commissiso
Precidency Banking Commissio
None of the abov
The Correct Answer is : Hilton young commissiso
172. The Central Banking Enquiry Commission was set up in: Marks: 2+ 0.5-
1925
1926
1931
1933
The Correct Answer is : 1931
173. Who passed the Bill to set up the Reserve Bank of India? Marks: 2+ 0.5-
Lagislative Assembly
Parliament
Governor General
British counsil
The Correct Answer is : Lagislative Assembly
174. The RBI was nationalized in: Marks: 2+ 0.5-
1934
1947
1948
1949
The Correct Answer is : 1948
175. which of the following is not the member of Central Board of Directors of RBI?
Finance Minister of central government
Governors & Dy. Governors of RBI
Directors of local boards of RBI
Directors nominated by central government
The Correct Answer is : Finance Minister of central government
176. How many Local Boards the RBI has? Marks: 2+ 0.5-
2
3
4
5
The Correct Answer is : 4
177. The currency notes issued by RBI are declared as: Marks: 2+ 0.5-
Legal tender
Limited legal tender
Unlimited legal tender
None of these
The Correct Answer is : Unlimited legal tender
178. The minimum security to be maintained by the RBI for issue of currency notes is:
Marks: 2+ 0.5-
Rs. 200 Crore
Rs. 500 Crore
Rs. 2000 Crore
Rs. 5000 Crore
The Correct Answer is : Rs. 200 Crore
179. Which of the following is not the function of currency chest? Marks: 2+ 0.5-
It facilitates deposit of surplus Cash
It exchanges the coins & notes
It can issue currency in the open market
It provides cash to Banks in case of need
The Correct Answer is : It can issue currency in the open market
180. Reserve Bank of India is: Marks: 2+ 0.5-
An exctensio wing of Ministry of Finance, Govt. of India
A body corporate having perpetual succession and a common seal
An institution owned by Indian Banks Association
A private sector company
The Correct Answer is : A private sector company
181. Authorised, subscribed and paid up share capital of Researve bank of India is: Rs.
5000 crore
Rs. 5 crore
Rs. 50 crore
Rs. 100 crore
The Correct Answer is : Rs. 50 crore
182. Which Bank is the Banker to the central government? Marks: 2+ 0.5-
Central Bank of India
Researve Bank of India
Punjab National Bank
All these
The Correct Answer is : Punjab National Bank
183. The term 'Ways and Means' advances rafer to: Marks: 2+ 0.5-
The temporary advance made to the government by its Bankers to bridge the internal
between expenditure and the flow of receipt of revenues
The advance given by the Banks to the poorest of the society
Lending made under PMRY scheme
All the above
The Correct Answer is : Lending made under PMRY scheme
184. The reserve Bank of India is also called the lender of the last resort to schedule
commercial banks because: Marks: 2+ 0.5-
RBI meets directly or indirectly all the reasonable demands for financial accommodation
subject to get facilites from other banks
They are not able to get facilities from other Banks
Both of the above
They are able to get facilities from private sector banks
The Correct Answer is : They are able to get facilities from private sector banks
185. RBI has given freedom to Banks to: Marks: 2+ 0.5-
Convert their non-viable rural branches into satellite offices on certain conditions
Provision of locker facilities at the extension counters
Closing of loss making branches in urban/metro cxenteres and loss making branches at
rural centres served by two Commercial Bank branches excluding RRBs, after mutual consent
All the above
The Correct Answer is : All the above
186. In terms of section 19 of the RBI Act, 1934, the RBI has prohibited from:
Making loans or advances
Drawing or accepting bills payable otherwise than on demand
Allowing interest on deposits or current accounts
None of the above
The Correct Answer is : Allowing interest on deposits or current accounts
187. Introduction of ratring methodology for banks was introduced by RBI on the lines of:
Marks: 2+ 0.5-
IRAC
ALM
CAMEL
CMA
The Correct Answer is : ALM
188. Schedule Banks are required to keep cash researfes with Reserve Bank of India, in
terms of: Marks: 2+ 0.5-
Section 42 (1) of the RBI Act, 1934
Section 24 of the Banking Regulation Act,1934
Section 42 of the Negotiable Instruments Act, 1881
None of the above
The Correct Answer is : Section 42 (1) of the RBI Act, 1934
189. The cash reserve requirements for Non-schedule Banks are laid down in: Section 41
(1) of the Reserve Bank of India Act, 1934
Section 41 (1) of the Negotiable Instruments Act, 1881
Section 41 of the Banking Regulsation act, 1881
None of the above
The Correct Answer is : Section 41 (1) of the Negotiable Instruments Act, 1881
190. Cash Reserve Ratio is maintained in the form of: Marks: 2+ 0.5-
Government Securities
Balance with Reserve Bank of India
Balance with State Bank of India
All the above
The Correct Answer is : Balance with Reserve Bank of India
191. RBI is empowered to prescribe Cash Reserve Ratio ranging between:
Five percent to twenty percent of net demand and time liabilities
Three percent to fifteen percent of net demand and time liabilities
Three percent to forty percent of net demand and time liabilities
None of the above
The Correct Answer is : Three percent to fifteen percent of net demand and time liabilities
192. Statutary Liquidity Ratio means: Marks: 2+ 0.5-
The maximum percentage of demand and time liabilities upto which Bank can extend the
advance
Maintenance of liquid assets by Banks in the form of cash, gold and unencumbered
approved securities equal to not less than 25% of their total demand and time deposite
liabilities under the provisions of section 24 of Banking Regulation Act
To keep liquid cash
None of the above
The Correct Answer is : The maximum percentage of demand and time liabilities upto
which Bank can extend the advance
193. The reduction in the Statutory Liquidity Ratio by the Reserve Bank of India:
Will improve the resource of Banks
Will augment the resource of scheduled Commercial banks
Will not effect the liquidity position
None of the above
The Correct Answer is : None of the above
194. Under the powers derived from Section 20, 21 and 21A of the Reserve Bank of India:
Marks: 2+ 0.5-
The Reserve Bank manages the public debt and issues new loans on behalf of he Central
and state Government
The Reserve Bank provides refinance to NABARD in respect on agriculture advances
The reserve Bank regulates flow of credit to the economy by variation in the Statutory
Liquidity requirement and Cash Reserve Ratio
All the above
The Correct Answer is : The Reserve Bank provides refinance to NABARD in respect on
agriculture advances
195. In periods of boom, which leads to economic instability Reserve Bank resorts to:
Marks: 2+ 0.5-
Sale first class securities in its precession in the market, to reduce the supply of money as
a measure of open market operations
Buying of approved securities in the market as a measure of open market operations
Like in the bank rate as a measure of open market operations
None of the above
The Correct Answer is : None of the above
196. The public debts offices function under the control of: Marks: 2+ 0.5-
Central Government
Reserve Bank of India
Public Debt Ministry
(a) and (b)
The Correct Answer is : Reserve Bank of India
197. Which of the following statements, are correct? Marks: 2+ 0.5-
In India, foreign exchange regulations are administreted by Reserve Bank of India
Reserve Bank of India maintains the external value of rupee
Reserve Bank of India does not deal in foreign exchange directly with the public
All the above
The Correct Answer is : Reserve Bank of India does not deal in foreign exchange directly
with the public
198. A new department; viz., Department of supervision has been set up by Reserve Bank of
India w.e.f. 22.12.1993. The above department has taken over: Marks: 2+
The work relating to the supervision of Commercial Banks from the Departmetn of Banking
Operations and Development
The supervision work of Ministry of Finance
The work of supervision of Development Bank in India
The work of supervision of foreign Banks
The Correct Answer is : The work of supervision of Development Bank in India
199. RBI has permitted Banks to open, without its prior approval, specialized branches per
centre each in the catogary of: Marks: 2+ 0.5-
Industrial Finance
NRI branches
Treasury branches
All these
The Correct Answer is : NRI branches
200. Which of the following guidelines have been issued by Reserve Bank of India based on
the recommendation of Narsimham committee in regard to branch licensing policy?
Marks: 2+ 0.5-
Banks may relocate brnches, open specialized branches, spin off business at other
locations, set up controlling offices/administrative units and also establish extension counters
Banks may close down branches other than in rural areas as well as to swap
unremunerative branches or those in remote areas
Banks which attain the revised capital adequency norms and p-rudential accounting
standards wii be given freedom to set up new brnch offices
All the above
The Correct Answer is : Banks which attain the revised capital adequency norms and p-
rudential accounting standards wii be given freedom to set up new brnch offices
201. Demand liabilities mean: Marks: 2+ 0.5-
Liabilities which are payable within one year from date of balance sheet
Liabilities which must be met on demand
Current and savings deposite
None of the above
The Correct Answer is : Liabilities which must be met on demand
202. As per section 5 (f) of the Banking Regulation Act, 1949, time liabilities mean:
Time deposit
Liabilities payable after a specified time
Liabilities which are not demand liabilities
None of the above
The Correct Answer is : None of the above
203. Which is the authority in India for effecting changes in the Cash Reserve Ratio and
Statutory Liquidity ratio? Marks: 2+ 0.5-
Government of India
Reserve Bank of India
Indian Bank's Association
CRR and SLR Association
The Correct Answer is : Reserve Bank of India
204. Bank rate means: Marks: 2+ 0.5-
The rt of interest charged by the Bank on advances
The rate of interest paid by banks on the deposits
The standard rate at which the reserve Bank of India is prepared to buy or rediscount
eligible bills of exchange or other commercial papers of commercial banks
None of the above
The Correct Answer is : None of the above
205. To restrict expansion of credit, the Reserve bank: Marks: 2+ 0.5-
Raises the Bank rate
Reduces the Bank rate
Freeze the bank rate
None of the above
The Correct Answer is : None of the above
206. When Reserve Bank intends to increase credit by the Banking system, it: Reduces
the Bank rate
Raises the Bank rate
Freezes the Bank rate
None of the above
The Correct Answer is : Reduces the Bank rate
207. Bank rate policy, open market operations, variable reserve requirements and statutory
liquidity requirements as measures of credit control are classified as: Quantitative
methods
Quantitative methods
Weighted avarege methods
None of these
The Correct Answer is : Weighted avarege methods
208. Which of the following fall under qualitative methods of credit control adopted by
Reserve Bank of India? Marks: 2+ 0.5-
Selective Credit Control
Credit authorization scheme
Moral suasion
All these
The Correct Answer is : Selective Credit Control
209. The term 'Moral Suasion' refers to: Marks: 2+ 0.5-
The Banker's duty of secrecy as regards the affair and accounts of his customers
Moral duty of a borrower to deal with only one Bank
The advice given by Reserve Bank to Banks/financial institutions in the matte4r of their
lending and other operations with the objective that they might implement or follows
None of the above
The Correct Answer is : None of the above
210. 'Currency of India' refers to: Marks: 2+ 0.5-
One rupee notes only
One rupee notes and coin
Bank notes issued by Reserve Bank of India; i.e., Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs.
100, Rs. 500 and Rs. 1000
One rupee notes and coins and bank notes issued by reserve Bank of India
The Correct Answer is : One rupee notes and coins and bank notes issued by reserve Bank
of India
211. Which of the following is the sole authority for issuance of currency in India?
Controller of Currency
Government of India
Reserve Bank of India
None of these
The Correct Answer is : Controller of Currency
212. The note issue system in India is based on: Marks: 2+ 0.5-
Gold Deposit System
Minimum Reserve System
Proportional Reserve System
Simple deposit system
The Correct Answer is : Minimum Reserve System
213. One rupee note bears the signature of: Marks: 2+ 0.5-
Secretary, Ministry of finance, Govt. of India
Dy. Governer of Reserve Bank of India
President of India
Vice-president of India
The Correct Answer is : Secretary, Ministry of finance, Govt. of India
214. Bank notes are issued under the signature of: Marks: 2+ 0.5-
Dy. Governor of Reserve Bank of India
Governor of Reserve Bank of India
Chirman and Managing Director of Reserve Bank of India
Any authorized official of RBI
The Correct Answer is : Dy. Governor of Reserve Bank of India
215. The currency notes issued by RBI have a cent percent cover in: Marks: 2+ 0.5-
Approved assets
Gold
Foreign exchange
Trustee securities
The Correct Answer is : Approved assets
216. The approved assets which currency notes are issued by RBI, comprise of: Gold coin
and bullion and rupee coin
Foreign securities and rupee securities of India, of any maturity
Bills of exchange and promissory notes payable in India which are eligible for purchase by
RBI
All the above
The Correct Answer is : Foreign securities and rupee securities of India, of any maturity
217. The Board for Financial supervision has been constituted by the Reserve Bank of India
under the Reserve Bank of India (Board for Financial supervision) Regulations, 1994 on 16th
November 1994. The main objective of Board is: Strengthening supervision and
surveillance over the financial system
Providing sharper focus to supervisory policy and skills
Both of the above
None of the above
The Correct Answer is : Both of the above
218. The board for Financial supervision has a term of: Marks: 2+ 0.5-
One year
Two years
Ten years
No time limit
The Correct Answer is : One year
219. The board will exercise integrated supervision over: Marks: 2+ 0.5-
Commercial Banks
Financial Institutions
Non-Banking Financial Intermediaries and other para-Banking financial institutions
All the above
The Correct Answer is : All the above
220. RBI has given freedom to Banks to: Marks: 2+ 0.5-
Convert non-viable rural branches into satellite offices on certain conditions
Provide locer facilities at the extension counters
Close down loss incurring branches in urban/metro centres and loss incurring branches at
rural centres, which are served by two Commercial Bank branches excluding RRBs, after
mutual consultation
All the above
The Correct Answer is : All the above
221. The main thrust of the branch licensing policy is: Marks: 2+ 0.5-
to provide freedom to Banks to rationalize the structure of their branches
to give an apportunity to the Banks to open as many branches as they wish
none of the above
both (a) and (b)
The Correct Answer is : both (a) and (b)
222. For setting up a new private sector Bank: Marks: 2+ 0.5-
The promotor's contribution shall 25 percent if capital does not exceed Rs. 100 crore and
20 percent if capital exceed of Rs. 100 crore
NRI participation in the primary equity of a new Bank shall not exceed 40%
The shares of the bank should be listed on stock exchange
All of the above
The Correct Answer is : All of the above
223. As per guidelines of Reserve Bank of India , a new private sector bank:
Shall be subject to prudential norms in regard to income recognition, asset classification
and provisioning, capital adequacy etc.
Shall have to observe priority sector lending targets as applicable to other domestic Banks
Will be required to open rural and semi-urban branches
All the above
The Correct Answer is : All the above
224. A new private sector Bank: Marks: 2+ 0.5-
Will be subject to the directive, instructions, guidelines and advices given by the Reserve
Bank of India
Will be governed by the provisions of RBI Act, 1934; Banking Regulation Act, 1949 and
other relevant statutes
Would be governed by existing branch licensing policy where by Banks could open
branches including at urban/metro centrs without prior approval of RBI once capital adequacy
and prudential accounting norms are satisfied
All the above
The Correct Answer is : All the above
225. As per the guidelines issued by RBI on 3rd January, 2001 : Marks: 2+ 0.5-
The minimum paid up capital requirement of a newly set up private sector Bank should be
at least Rs. 200 crore and the same should be raised to Rs. 300 crore within three years of
commencement of business
Minimum capital adequacy ratio should be at 10 per cent on continues basis from the
commencement of business
None of the above
Both (a) and (b)
The Correct Answer is : Both (a) and (b)
226. The Rights of the shareholders are dealt under the provision: Marks: 2+ 0.5-
Section 12 (2)
Section 87
Section 10 (E)
Section 11
The Correct Answer is : Section 12 (2)
227. Voting Right of the shareholders with total Rights of all shareholdersnof a Bank are
limited to: Marks: 2+ 0.5-
One per cent of total Rights
Two per cent of total Rights
Five percent of total Rights
Ten percent of total Rights
The Correct Answer is : One per cent of total Rights
228. The intention of provisons of shareholders Rights is: Marks: 2+ 0.5-
To prevent the shareholders of a Bank from securing control over the management
To prevent preferential Rights on the Assets of the company
(a) or (b) of the above
(a) and (b) both
The Correct Answer is : (a) and (b) both
229. Which of the following sections, prohibits a bank from granting any loan (secured or
unsecured), to any of its Directors or any other firm or company in which such Director has
vested interest? Marks: 2+ 0.5-
Section 20
Section 12
Section 21
Section 18
The Correct Answer is : Section 20
230. Which of the following are the restrictions on loans and advances under Section 20?
Marks: 2+ 0.5-
No bank shall grant any loans or advances on the security of its own shares
No bank will grant any loan or advances to or on behalf of any Director or to an firm in
which the Director has vested interest
No bank would grant loan to any individual in respect of whom any of its Directors is a
partner or guarantor
All the above
The Correct Answer is : All the above
231. For the purpose of Section 20, which of the following loans and advances are not
induced? Marks: 2+ 0.5-
Loans against government securities
Loans against life insurance policies and fixed deposits
Loans or advances to agriculture finance corporation
All the above
The Correct Answer is : All the above
232. What are the provisions of section 27 rgarding submission of returns to RBI? A bank
has to submit monthly statement of Assets and Liabilities in India on the last Friday of every
month to Reserve Bank
A half yearly statements of investment and classification of advances to be submitted to
RBI
Reserve Bank may call for any information or statements relating to the business or affairs
of a Bank
All the above
The Correct Answer is : All the above
233. Which of the following statements, is correct regarding submission of Returns to RBI?
Marks: 2+ 0.5-
Every Regional Rural Bank (RRB) will submit a copy of the return so submitte to RBI to
NABARD also
NABARD may exercise powers of RBI in relation to RBIs
The RBI may call any Return either through notice or on oral instructions
All the above
The Correct Answer is : All the above
234. What are the powers of Central government in case of cancellation of license of a Bank
by the RBI? Marks: 2+ 0.5-
Central government may permit amalgamation of two or more Banks with the consultation
of Reserve Bank
Central government may make an order of moratorium for maximum period of 6 months
subject to an application by the RBI
c. It has powers to sanction the scheme of re-construction prepared by Reserve bank
All the above
The Correct Answer is : All the above
235. Which of the following are the provisions regarding Accounts and Balance sheet?
Marks: 2+ 0.5-
Every Bank has to prepare a Balance Sheet and profit & Loss Account on the last working
day of year or period decided by the RBI
The accounts of a Bank are drawn in conformity with forms A and B of the Third schedule
of Banking Regulation Act, 1949.
All Banks are required to prepare Balance sheet on the same day and date
All the above
The Correct Answer is : All the above
236. Which of the following is relevant for credit of Balance sheet? Marks: 2+ 0.5-
As per section 29 Balance Sheet and profit & Loss Account need to be audited by a
qualified auditor
RBI's approval is necessary before appointment of an auditor
RBI may direct a Bank for special audit
All the above
The Correct Answer is : All the above
237. What are the important matters an auditor should mention in the report? Information
and explanation required is satisfactory
Transactions conducted by a Bank are within the powers of the bank
The returns submitted by the Bank or its branches have been found adequate for the
purpose of audit
All the above
The Correct Answer is : All the above
238. Which of the following is not the part of audit Report of a Bank? Marks: 2+ 0.5-
The profit & Loss account shows a true balances
Disclosure of provisoin norms adopted by a Bank
Any other information necessary and should be brought to the notice of shareholders
Interest Rates on deposits and advances
The Correct Answer is : Interest Rates on deposits and advances
239. The profit & Loss Account and Balance sheet shall be signed by: Marks: 1+ 0.25-
Chairman and Managing Director and Executive Director
A minimum of 3 directors
In case the Banking Company incorporated outside India by the Manager or Agent of the
principal office of the company
All the above
The Correct Answer is : All the above
240. Which of the following norms are applicable for display of audited Balance Sheet of a
Bank? Marks: 2+ 0.5-
The audited Balance should be published in the National Newspaper
Capital of audited Balance sheet be made available to all the shareholders
It should be display in the Banks Head officwe and all other branches and offices
All the above
The Correct Answer is : All the above
241. What are the powers of Reserve Bank of India for conducting scrutiny of a Bank?
Marks: 2+ 0.5-
The RBI is empowered to conduct scrutiny of affairs of a Bank in addition to regular
inspection
The scrutiny officer has the same powers as the inspecting officer of RBI
A copy of the scrutiny report would be produced to the Bank
All the above
The Correct Answer is : All the above
242. To whom a Bank is required to submit audited copies of Balance sheet?
3 copies to RBI
3 copies to Registrar of Companies
Annual general Body Meeting
All the above
The Correct Answer is : All the above
243. What is the maximum time limit for publishing a bank balance sheet in the newspaper?
Marks: 2+ 0.5-
Within 2 months from the date of balance sheet
Within 6 months from the date of balance sheet
Within 3 months from the date of balance sheet
No such time limit
The Correct Answer is : Within 6 months from the date of balance sheet
244. Which of the following is not a condition for payment of dividend? Marks: 2+
The capitalized expenses have been completely written off
Adequqte provisions have been made for bad debts
Interest due on loans and advances has been recovered
Adequate provision has been made for depreciation in the value of investments
The Correct Answer is : Interest due on loans and advances has been recovered
245. What is the maximum time limit when dividends can be paid from the date of
declaration? Marks: 2+ 0.5-
30 days
42 days
60 days
75 days
The Correct Answer is : 42 days
246. What does a moratorium signifies in case of a Banking company? Marks: 2+ 0.5-
Suspension of business is called moratorium
It can be done for a maximum period of 6 months
High court is the authority
All the above
The Correct Answer is : All the above
247. What are the circumstances for winding up of a Banking company? Marks: 2+
The bank is unable to pay its debt
If Reserve bank applies to high court
If Reserve bank feels that affairs of the aBank are not in the invest of the public
All the above
The Correct Answer is : All the above
248. Under what circumstances a Bank is deemed to be unable to pay its debts?
It has refused to meet any lawful demand
The time limit for meeting demand is 2 days.
The reserve bank certifies that the bank is unable to pay its dept.
All the above.
The Correct Answer is : All the above.
249. Under what condition the reserve the reserve bank may for winding up of a bank?
Marks: 2+ 0.5-
If bank fail to comply with the minimum paid up capital requirement.
If the bank has been prohibited from receiving fresh deposits.
The bank does not fulfil the requirements of the Act.
All the above.
The Correct Answer is : All the above.
250. what is the role of official liquidator of a bank? Marks: 2+ 0.5-
To submit preliminary report to the high court within 2 months from the date of winding
up order.
To give a notice to preferential claimants and secured and unsecured creditors within 15
days of winding up order.
Every depositor is deemed to have filed the claim.
All the above.
The Correct Answer is : All the above.
251. Which of the following statements, is correct regarding winding up of bank? After
making adequate provision for preferential payments the liquidator shall pay a minimum of
Rs. 250 of his credit balance whichever is less witin 3 months
The remaining assets will be utilized for paymnt of dept on pro rat abasis.
A bank can not be voluntarily wound up,
All the above.
The Correct Answer is : All the above.
252. Which of the following sections deal with the amalgamation o a bank? Section 44 A.
Section 10.
Section 35.
Section45.
The Correct Answer is : Section 44 A.
253. What is the process of amalgamation? Marks: 2+ 0.5-
It has to be approved by majority of shareholders representing 2/3 shareholders.
The RBI has to sanction the scheme
After approval of RBI assets and liabilities are transferred to acquiring bank .
All the above .
The Correct Answer is : All the above .
254. Which of the following statements, is correct regarding acquiring of a banking company
by the central bank? Marks: 2+ 0.5-
Banking regulation Act (as amended) empowers Central government to acquire a Banking
company.
It can do so after receiving a report from the RBI.
It can also acquire Banking Company for better provision of credit.
All the above.
The Correct Answer is : All the above.

Вам также может понравиться