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1. What is the full form of 'PCA'? 8. ‘LAF’ in banking stands for -

- Prompt Corrective Action. 'PCA'. PCA is a
mechanism that will be forced by Reserve
Bank of India upon banks that shows signs of
stress which means the banks which have low
capital adequacy or high Non-performing
Assets.
2. What is the full form of 'GDR'?
-Liquidity adjustment facility (LAF). Liquidity
adjustment facility (LAF) is a monetary policy
tool which allows banks to borrow money
through repurchase agreements. LAF is used
to aid banks in adjusting the day to day
mismatches in liquidity. LAF consists of repo
and reverse repo operations.

- Global Depositary Receipt. A global 9. What is Investment banking?

depositary receipt (GDR) is a bank certificate
issued in more than one country for shares in
a foreign company. The shares are held by a
foreign branch of an international bank. The
shares trade as domestic shares but are
offered for sale globally through the various
bank branches.
3. Interest -Risk is a type of? -
- Market risk. Interest Risk is a type of Market
risk which is the potential for changes in
interest rates to reduce a bank's earnings and 10.
lower its net worth.
- Investment banking is a specific division of
banking related to the creation of capital for
other companies, governments and other
entities. Investment banks underwrite new
debt and equity securities for all types
of corporations, aid in the sale of securities,
and help to facilitate mergers and
acquisitions, reorganizations and broker
trades for both institutions and private
investors.
Which organization is the lender of last
resort in a country?

4. What is Credit risk? - Central Bank (for Example- RBI in India)

- Credit risk is the associated with an 11. What is the full form of 'FATF' -
investment where the borrower is not able to - Financial Action Task Force (FATF). FATF is
repay the amount to the lender. This can an intergovernmental organization founded in
occur on account of poor financial condition of 1989 on the initiative of the G7 to develop
the borrower, and it represents a risk for the policies to combat money laundering. In 2001
lender. its mandate expanded to include terrorism
5. Bharatiya Reserve Bank Note Mudran financing.
Private Limited (BRBNMPL), subsidiary of 12. Under call money market, funds are
Reserve Bank of India manages 2 transacted on--
Presses. The presses located at - an overnight basis. Call Money market is
- one at Mysore in Karnataka and the other at open only for scheduled commercial banks
Salboni in West Bengal. and primary dealers.
6. An accounting term that refers to the 13. What is the full form of CAGR?
process of allocating the cost of an - Compound Annual Growth Rate. It is a rate
intangible asset over a period of time is for the geometric progression ratio that
known as - provides a constant rate of return over the
- Amortization. time period. In this market one day
7. CASA stands for- (overnight) loans can be availed by banks to
meet their short term liquidity requirements.
- Current and Savings account. A current
account savings account (CASA) is aimed at 14. The state-owned UCO Bank
combining the features of savings and headquartered in
checking accounts to entice customers to - Kolkata
keep their money in the bank by paying very 15. What does 'NACH' stands for -
low or no interest on the current account and
an above-average return on the savings - National Automated Clearing House
portion (NACH).

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16. What does 'SFMS' stands for - 25. What do you understand by 'LTV'?
- Structured Financial Messaging - The loan-to-value (LTV) ratio is a financial
System. Structured Financial Messaging term used by lenders to express the ratio of
System. SFMS is a secure messaging standard a loan to the value of an asset purchased. The
developed to serve as a platform for intra-bank term is commonly used by banks and building
and inter-bank applications. It is an Indian societies to represent the ratio of the first
standard similar to SWIFT (Society for World-Wide mortgage line as a percentage of the total
Interbank Financial Telecommunications). appraised value of real property.
17. As per RBI, ARCs must have the 26. Who is the head of the cabinet-level
minimum net corpus of how much committee related to the merger of
amount crore by 2019 ? public sector banks?
- Rs 100 crore - Arun Jaitley
18. What does 'ICO' stands for - 27. Which organisation publishes the World
- Initial Coin Offering (ICO). It is an Economic Outlook (WEO) report?
unregulated means by which funds are raised - International Monetary Fund (IMF)
for a new cryptocurrency venture. An Initial 28. 'Ease of doing business' report is
Coin Offering (ICO) is used by startups to published by which organisation?
bypass the rigorous and regulated capital- - World Bank
raising process required by venture capitalists 29. Pradhan Mantri mudra yojana scheme
or banks. available in which types of banks?
19. Non-Banking Financial Company-Micro - All Banks
Finance Institutions (NBFC-MFIs) is 30. What does 'UPI' stands for -
regulated by – - Unified Payment Interface. A UPI is a single
- Reserve Bank of India window mobile payment system launched by
20. ELSS stands for - the National Payments Corporation of India
- Equity Linked Saving Schemes. Equity- (NPCI).
linked savings scheme popularly known are 31. What does 'RERA' stands for -
open-ended, diversified equity schemes - Real Estate Regulatory Agency.
offered by mutual funds in India. They offer 32. What is the term for the Note which has
tax benefits under the new Section 80C of become dirty and limp due to excessive
Income Tax Act 1961 use is called -
21. The National Institute of Securities - Soiled Note
Markets (NISM) is a public trust 33. The concern for environmental
established in 2006 by which of the sustainability by the banks has given rise
following organizations? to the concept of
- Securities and Exchange Board of India - Green Banking
(SEBI) 34. Which type of account is interest-free
22. What does 'SWIFT' stands for? account?
- Society for Worldwide Interbank Financial - Current Account
Telecommunication. It is a Global 35. What does 'WMA' Stands for?
communication network that facilitates a - Ways and Means Advances. The Reserve
24-hour secure international exchange of Bank of India gives temporary loan facilities
payment instructions between banks, central to the centre and state governments as a
banks, multinational corporations, and major banker to the government. This temporary
securities firms. loan facility is called Ways and Means
23. Bandhan Bank Limited, which is an Advances (WMA).
Indian banking and financial services 36. What is a type of short-term loan,
company, deals prominently in which typically taken out for a period of
type of loans? 2 weeks to 3 years pending the
- Micro-Finance arrangement of larger or longer-term
24. What is the maximum deposit limit of financing
IPPB Savings Account? - - Bridge Loan
- Rs 1 Lakh

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37. What is a type of home loan for older 48. What is the minimum capital required for
homeowners that requires no monthly small finance bank?
mortgage payments - 100 Cr
- Reverse mortgage 49. Cheque and DD come under which act -
38. What is the meaning of "S" in CERSAI? - Negotiable Instrument Act 1881.
- Securitisation (Central Registry of 50. What is the full form of 'UPI'?
Securitisation Asset Reconstruction and - Unified Payment Interface. Unified
Security Interest of India) Payments Interface (UPI) is a system that
powers multiple bank accounts into a single
39. What is the maximum compensation
mobile application (of any participating bank),
offered under the banking ombudsman
merging several banking features, seamless
scheme
fund routing & merchant payments into one
- Rs 20 Lakh hood.
40. What is the meaning of "F" in IFSC? 51. Cheque truncation system introduced in
- Financial (Indian Financial System which year?
Code). IFSC Code refers to Indian Financial - 2010. Cheque Truncation System (CTS) is
System Code, which is an eleven-character a cheque clearing system undertaken by the
code assigned by RBI to identify every bank Reserve Bank of India (RBI) for faster clearing
branches uniquely, that are participating in of cheques. As the name suggests,
NEFT system in India. This code is used by truncation is the process of stopping the flow
electronic payment system applications such of the physical cheque in its way of clearing.
as RTGS, NEFT and CFMS. 52. The Banking Codes and Standards Board
41. MMID is used for - of India was registered as a society
- Mobile Banking under which act -
42. Which bank does not issue credit cards? - Societies Registration Act, 1860
- Payment Bank 53. National Financial Switch (NFS) is run by
- National Payments Corporation of
43. What does SEBI stand for?
India (NPCI)
- Board (Securities and Exchange Board of 54. What is the meaning of "S" in MSF?
India). The Securities and Exchange Board of - Marginal Standing Facility. MSF is the rate at
India is the regulator for the securities market which the banks are able to borrow overnight
in India funds from RBI against the approved
government securities.
44. What does IFC stand for? 55. What is the meaning of "P" in APBS?
- Finance (International Finance
- Aadhaar Payment Bridge System. APBS is
Corporation). The International Finance
the new payment service offered by the
Corporation is an international financial
National Payments Corporation of India
institution that offers investment, advisory,
(NPCI) using the “Aadhaar” number, issued by
and asset-management services to encourage
the Unique Identification Authority of India
private-sector development in developing
(UIDAI).
countries.
45. What is the full form of 'MUDRA' in 56. Risk of collapse of the entire financial
MUDRA Bank? system on the market is called-
- Micro Units Development Refinance - Systemic risk
Agency. MUDRA Bank is a public sector 57. RBI was nationalized in which year?
financial institution in India. It provides loans - 1st January 1949.
at low rates to micro-finance institutions and 58. Cheque written by drawer and dated at
non-banking financial institutions which then some point in past is called -
provide credit to MSMEs. - Ante-dated cheque
46. What does 'SHG' stands for? 59. As per RBI norms on small banks, initial
- Self-help group (SHG). promoter stake for first 5 years should
47. Which is the first payment Bank in India? not be less than -
- Airtel Payments Bank Ltd
- 40 percent

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60. The NBFCs are allowed to accept/renew
public deposits for a minimum period of
12 months and the maximum period of
how many months?
- 60 months
61. The government of India has changed
CII base year from 1981 to-
- 2001
62. Payment Banks are not permitted to-
- Payment banks cannot issue loans and
credit cards.
63. What is the meaning of "D" in MDR?
- Discount (Merchant Discount Rate). MDR is
a fee charged from a merchant by a bank for
accepting payments from customers through
credit and debit cards in their establishments.
64. Metric which defines operating liquidity
available to business is known as?
- Working capital
65. Institute for Development & Research in
Banking Technology (IDRBT) is located
in?
- Hyderabad
66. What does 'CRR' stands for?
- Cash (Cash Reserve Ratio). It is the
percentage of cash deposits that banks need
to keep with the Reserve Bank of India on a
fortnightly basis.
67. Marginal Standing Facility (MSF) started
in which year?
- 2011-12.
68. DICGC is a government body responsible
for -
- providing insurance of deposits. Deposit
Insurance and Credit Guarantee Corporation
is a subsidiary of Reserve Bank of India. It
was established on 15 July 1978 under
Deposit Insurance and Credit Guarantee
Corporation Act, 1961 for the purpose of
providing insurance of deposits
guaranteeing of credit facilities.
69. Where is the Headquarter of SIDBI?
- Lucknow
70. RuPay a new card payment scheme
launched by which organization?
- National Payments Corporation of India
(NPCI). RuPay is an Indian domestic card
scheme conceived and launched by the
National Payments Corporation of India
(NPCI). It was created to fulfil the Reserve
Bank of India's desire to have a domestic,
open loop, and multilateral system of
payments in India.
71. Where is the Head Office of Standard
Chartered Bank?
- London, UK
72. What does "I" stand for in LEI?
- Identifier (Legal Entity Identifier). Legal
Entity Identifier India Limited is A Wholly
Owned Subsidiary of The Clearing Corporation
of India Ltd. acts as a Local Operating Unit
(LOU) for issuing globally compatible Legal
Entity Identifiers (LEIs) in India
73. What does "E" stand for in AEPS?
- Aadhaar Enabled Payment System. AEPS is
a bank led model which allows online
interoperable financial transaction at PoS
(Point of Sale / Micro ATM) through the
Business Correspondent (BC)/Bank Mitra of
any bank using the Aadhaar authentication.
74. Class of derivative whose value is at least
partly derived from one or more
underlying stock exchange securities?
(Trade, Commodity, Credit, Interest Rate,
Equity) -
- Equity Derivative
75. The framework of Joint Lenders’ Forum
(JLF) by RBI is to strengthen the system
for revitalising the -
- stressed assets in the economy
76. Using SBI Mingle, the bank’s customers can
do a host of banking services on which
accounts at their own convenience?
- Facebook or Twitter
77. What does "M" stand for in MIBOR?
- Mumbai (Mumbai Interbank Offered Rate)
78. Where is the headquarter of Central
Registry of Securitisation Asset
Reconstruction and Security Interest of
India (CERSAI)?
and
- New Delhi
79. What does 'EFTPOS' stand for?
- Electronic funds transfer at point of
sale. EFTPOS is used as a method of payment
for goods and services. An EFTPOS machine is
an electronic device that assists in the
transfer of funds from a customers bank
account to a merchant(business) bank
account
80. Which bank has launched YONO (You
Need Only One) app?
- SBI
81. Where is the headquarter of IDFC Bank?
- Mumbai
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82. Bharatiya Reserve Bank Note Mudran
Private Limited (BRBNMPL) was
established by which organization?
- Reserve Bank of India.
83. Where is the headquarter of NABARD?
- Mumbai
84. What does "B" for in CBLO?
- Borrowing (Collateralized Borrowing and
Lending Obligations). A collateralized
borrowing and lending obligation (CBLO) is a
money market instrument that represents an
obligation between a borrower and a lender as
to the terms and conditions of a loan.
85. Teaser Loans are related to which type of
loans?
- Home Loans
86. What does 'SARFAESI' Act stand for?
- Securitisation and Reconstruction
Financial Assets and Enforcement of Securities
Interest Act. This act allows banks and other
financial institution to auction residential or
commercial properties to recover loans.
87. What do you understand by Repo Rate?
- Repo rate is the rate at which the central
bank of a country (Reserve Bank of India in
case of India) lends money to commercial
banks in the event of any shortfall of
funds. Repo rate is used by monetary
authorities to control inflation.
88. What do you understand for 'Reverse
Repo Rate'?
- Reverse repo rate is the rate at which the
central bank of a country (Reserve Bank of
India in case of India) borrows money from
commercial banks within the country. It is a
monetary policy instrument which can be
used to control the money supply in the
country.
89. In a DEMAT account, actual money is
replaced by -
- Shares. A Demat Account is an account that
allows investors to hold their shares in an
electronic form. Stocks inDemat
account remain in dematerialized form.
Dematerialization is the process of converting
physical shares into electronic format.
90. What is the function of 'NACH'?
- National Payments Corporation of India
(NPCI) has implemented “National Automated
Clearing House (NACH)” for Banks, Financial
Institutions, Corporates and Government a
web-based solution to facilitate interbank,
high volume, electronic transactions which are
repetitive and periodic in nature.
91. How many digits are there in 'MICR'
code?
- The MICR code has nine digits in it. The first
three digits in the MICR code represent the
city code that is the city in which the bank
branch is located. The next three digits stand
for the bank code while the last three digits
represent the bank branch code.
92. Commercial Paper can be issued for
a period of
- Commercial Paper can be issued for
maturities between a minimum of 7 days and
a maximum of up to one year from the date
of of issue.
93. What is Bankassurance?
- The selling of life assurance and other
insurance products and services by banking
institutions is known as Bankassurance.
94. Who is the appellate authority in Banking
Ombudsman?
- Deputy Governor of Reserve Bank of India.
95. Where is the headquarter of Bank of
International Settlement (BIS)?
- Basel, Switzerland
96. Bank Holidays are declared as per -
- Negotiable Instrument Act
97. MUDRA Bank is wholly owned subsidiary
of which organization?
- SIDBI
98. The headquarter of New Development
Bank (BRICKS Bank) is located in which
country?
- Shanghai, China.
99. What does 'CDR' stand for -
- Corporate Debt Restructuring. It is a
voluntary non-statutory mechanism under
which financial institutions and banks come
together to restructure the debt of companies
facing financial difficulties due to internal or
external factors, in order to provide timely
support to such companies.
100. Very small loan given to impoverished
people to help them become self-
employed is known as –
- Micro Credit
***
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