100 Most Important Questions for Banking Exams and Interview

Most Important Questions and Answers for SBI and IBPS PO

1. MICR code consists of how many digits?
Answer: 9 digits. (First three digits denotes city, next three digits representing the bank and the last three digits representing the bank branch)

2. What is the minimum limit in RTGS system?
Answer: 2 lakhs (there is no upper limit in RTGS)
3. What is full form of CTS?
Answer: Cheque Truncation System
4. Under which service, customers may access their bank account and perform basic transactions from any of the member branch offices.
Answer: Core Banking Solution (CBS)
5. Exchange of cash flow in different currency is known as:
Answer: Currency Swap
6. Assets or loans which stop performing after 90 days is known as:
Answer: Non-Performing Asset (NPA)
7. Who controls the Monetary Policy in India?
Answer: RBI (Reserve Bank of India)
8. Which card is issued by NPCI (National Payments Corporation of India)?
Answer: RuPay Card
9. Definition of Current Account deficit?
Answer: A measurement of a country's trade in which the value of goods and services it imports exceeds the value of goods and services it exports.
10. Full form IFSC?
Answer: Indian Financial System Code
11. Commercial paper can be issued for a maximum period of:
Answer: 365 days or 1 year.
12. The Mutual funds in India follow accounting standards laid by?
Answer: SEBI (Securities and Exchange Board of India)
13. Minimum amount for Certificate of Deposit has been fixed at:
Answer: Rs. 1 Lakh
14. AML is a term mainly used in the financial and legal industries. Expand the term AML.
Answer: Anti-Money Laundering
15. PIN is a number allocated to an individual and used to validate electronic transactions. Expand PIN.
Answer: Personal Identification Number
16. What is Repo rate?
Answer: It is the rate is the rate at which RBI lends money to the commercial banks. It is charged for repurchasing the securities sold by Commercial banks to the central bank.
17. What is Stale Cheque?
Answer: A cheque which is presented to a bank after 3 months from the date of issue is considered as stale cheque and will often not be honoured for cash or deposit at a bank.
18. What is Bancassurance?
Answer: The selling of life assurance and other insurance products and services by banking institutions.
19. The objective of KYC guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. What is the full form of KYC?
Answer: Know Your Customer (KYC)
20. Know Your Customer (KYC) guidelines are issued under?
Answer: Section 35A of the Banking Regulation Act, 1949
21. In BSBDA (Basic Savings Bank Deposit Account) the credits in a financial year should not exceed?
Answer: Rs. 1 lakh
22. In BSBDA (Basic Savings Bank Deposit Account) the balance at any point of time does not exceed?
Answer: Rs. 50,000
23. In BSBDA (Basic Savings Bank Deposit Account) the withdrawals and transfers in a month should not exceed?
Answer: Rs. 10,000
24. What is the full form of CASA?
Answer: Current Account Saving Account
25. In what denominations Commercial Paper (CP) can be issued?
Answer: Rs. 5 lakh or multiples thereof.
26. What is the minimum denomination of Treasury bills to issue in India?
Answer: Rs. 25,000
27. Who cannot issue Certificate of Deposit (CD)?
Answer: Regional Rural Banks (RRBs) and Local Area Banks (LABs)
28. Expand ASBA.
Answer: Application Supported by Blocked Amount
29. Depositor Education and Awareness Fund (DEAF) is maintained with?
Answer: RBI
30. Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with?
Answer: Central Bank (RBI)
31. What is the maximum amount per transaction NEFT limit for cash-based remittances to Nepal?
Answer: Rs. 50,000
32. What does CAR stand for?
Answer: Capital Adequacy Ratio
33. When money is lent, or borrowed for one day or on the overnight basis it is known as?
Answer: Call Money
34. When money is lent, or borrowed for between 2 days and 14 days it is known as?
Answer: Notice money
35. When money is lent, or borrowed for a period of more than 14 days, it is known as?
Answer: Term money
36. Treasury Bills and Certificate of Deposit are considered as the ___ instruments?
Answer: Negotiable Money Market Instruments
37. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a?
Answer: Promissory note.
38. What is the upper limit in Public Provident Fund (PPF)?
Answer: Rs. 1.5 lakhs
39. As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheque, Demand Drafts, Pay Orders and Banker's Cheques is?
Answer: 3 months
40. What is the time limit for an asset or loan to be declared as Non-Performing Asset?
Answer: 90 days
41. Deposit Insurance and Credit Guarantee Corporation (DICGC) does not cover?
Answer: Primary co-operative societies
42. RBI measure to liquidate the market?
Answer: Repo rate.
43. Full form of EFT?
Answer: Electronic Fund Transfer
44. Fastest mode of a transaction?
Answer: RTGS
45. Alphanumeric code on a cheque is known as?
Answer: Indian Financial System Code (IFSC)
46. What is the loan limit for education under priority sector for studies abroad?
Answer: Rs. 20 lakh (Loans to individuals for educational purposes including vocational courses up to Rs.10 lakh for studies in India and Rs. 20 lakh for studies abroad are included under priority sector.)
47. Fixed Deposit (FD)Account may be opened for a minimum period of?
Answer: 7 days
48. What is the minimum amount required to open a Fixed Deposit (FD)?
Answer: Rs.1000
49. The Banks have converted all ‘no - frills' accounts’ into?
Answer: Basic Savings Bank Deposit Accounts
50. 'Pradhan Mantri Jan Dhan Yojana' is a Scheme for?
Answer: Financial inclusion
51. How much overdraft facility to be provided in 'Pradhan Mantri Jan Dhan Yojana' scheme?
Answer: Rs. 5,000
52. In CBS, C stands for:
Answer: Core (Core Banking Solution)
53. In CRAR, A stands for?
Answer: Assets (Capital to Risk Weighted Assets Ratio)
54. Minimum capital requirement for Foreign banks that want to set up operations in India is?
Answer: Rs. 500 crore
55. What is the minimum paid-up capital requirement of both small banks and payments banks in India?
Answer: Rs. 100 crore
56. RBI extended the timeline for full implementation of Basel III norms till?
Answer: 31 March 2019
57. SLR ((Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of before providing credit to its customers.
Answer: Cash, or gold, or govt. approved securities (Bonds)
58. Which of the following is a measure of Inflation?
Answer: Consumer Price Index (CPI).
59. When a cheque is torn into two or more pieces and presented for payment, such a cheque is called?
Answer: Mutilated cheque
60. How much fee is charged to file a complaint under Banking Ombudsman?
Answer: Banking Ombudsman does not charge any fee
61. Who is the appellate authority in Banking Ombudsman?
Answer: Deputy Governor of RBI
62. If any customer is not satisfied by the decision of Banking Ombudsman, he/she can appeal against the award before the appellate authority within how many days from the date of receipt?
Answer: 30 days
63. ATMs or Cash Dispensing machine which are owned and operated by Non-Banking Financial Companies are called?
Answer: White Label ATMs.
64. Minimum capital requirement for new banks in private sector is?
Answer: Rs. 500 crore
65. A Non-Banking Financial Company (NBFC) is a company registered under?
Answer: Companies Act, 1956
66. Minimum capital requirement for Non-Banking Financial Company (NBFC) is?
Answer: Rs. 500 crore
67. The NBFCs are allowed to accept/renew public deposits for a minimum period of?
Answer: 12 months (and maximum period of 60 months)
68. A NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI. What is the present ceiling?
Answer: 12.5 per cent per annum
69. Who issues Treasury bills (T-bills) in India?
Answer: Government of India
70. _______ is the rate at which banks borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities.
Answer: Marginal Standing Facility (MSF)
71. What is the minimum and maximum limit of NEFT?
Answer: No limit
72. How much amount RBI allows in 'Tap and pay' transactions without PIN?
Answer: Rs. 2000
73. Pension scheme for the unorganised sector?
Answer: Swavalamban
74. What is the full form of REIT?
Answer: Real Estate Investment Trust
75. Forward Market Commission has been merged with?
Answer: SEBI
76. What is the purpose of starting a Minor account for 10 years old children?
Answer: Financial inclusion
77. What is the full form of CVV?
Answer: Card Verification Value
78. Bank of International Settlement headquarter is located in?
Answer: Switzerland
79. Who appoints Banking Ombudsman officer?
Answer: RBI
80. IFRS full form is?
Answer: International Financial Reporting Standards
81. Which is the Regulatory body for RRBs?
Answer: NABARD
82. RBI policy related to money laundering?
Answer: Know Your Customer
83. What is the full form of MTSS?
Answer: Money Transfer Service scheme
84. In OMO, what does ‘M’ stand for?
Answer: Market (Open Market Operations)
85. Which rate does RBI Reduce to Increase liquidity in the market?
Answer: Repo Rate
86. After completion of 15 years, Public Provident Fund (PPF) can be extended up to how many years?
Answer: 5 years
87. What is the tenure of Treasury bills?
Answer: 91 days, 182 days, 364 days
88. For the Manufacturing sector, minimum limit for Medium Scale Enterprises is Rs. 5 crores. What is the maximum limit?
Answer: 10 Crores.
89. If RBI reduces CRR, what happens?
Answer: Credit Supply increases, loans get cheaper.
90. Special Drawing Right (SDR) is a monetary unit of?
Answer: IMF (International Monetary Fund)
91. Cheque which is not crossed is called?
Answer: Open cheque
92. Teaser rates are related to which type of loans?
Answer: Home loans
93. What is Teaser loan?
Answer: If a bank offers a slightly lower rate in the initial years and higher rate in later years, it is called a teaser loan.
94. The RBI policy rate which is purely an indicative rate used by RBI to signal long – term outlook on interest rates is:
Answer: Bank rate
95. The term ‘pre – shipment’ finance relates to?
Answer: Export credit
96. A receipt listed in India and traded in rupees declaring ownership of shares of a foreign company is known as?
Answer: Indian Depository Receipt (IDR)
97. Mobile banking fund transfer limit for a day is?
Answer: Rs. 50,000
98. The seed capital of Bhartiya Mahila Bank is?
Answer: Rs.1000 crore
99. Which organisation is known as “Lender of the Last Resort” by Banks?
Answer: RBI
100. “Fixed deposit” is also referred to as?
Answer: Term Deposit

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