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📌important Banking Awareness Questions :

1. MICR code consists of how many digits?

Ans: 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?

Ans: 2 lakhs (there is no upper limit in RTGS)

3. What is full form of CTS?

Ans: Cheque Truncation System

4. Under which service, customers may access their

bank account and perform basic transactions from

any of the member branch offices.

Ans: Core Banking Solution (CBS)

5. Exchange of cash flow in different currency is

known as:

Ans: Currency Swap

6. Assets or loans which stop performing after 90

days is known as:

Ans: Non Performing Asset (NPA)

7. Who controls the Monetary Policy in India?

Ans: RBI (Reserve Bank of India)

8. Which card is

issued by NPCI (National Payments Corporation of

India)?

Ans: RuPay Card

9. Definition of Current Account deficit:

Ans: 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 –

Ans: Indian Financial System Code

11. Commercial paper can be issued for a maximum

period of:

Ans: 365 days or 1 year.

12. The Mutual funds in India follow accounting

standards laid by:

Ans: SEBI (Securities and Exchange Board of India)

13. Minimum amount for Certificate of Deposit has

been fixed at:

Ans: Rs. 1 Lakh

14. AML is a term mainly used in the financial and

legal industries. Expand the term AML:

Ans: Anti Money Laundering

15. PIN is a number allocated to an individual and

used to validate electronic transactions. Expand

PIN:

Ans: Personal Identification Number

16. What is Repo rate?

Ans: It is the rate is the rate at which RBI lends

money to the commercial banks.

17. What is Stale Cheque?

Ans: A cheque which is presented to a bank after 3

months from date of issue is considered as stale

cheque and will often not be honored for cash or

deposit at a bank.

18. What is Bancassurance?

Ans: 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?

Ans: Know Your Customer (KYC)

20. Know Your Customer (KYC) guidelines are

issued under:

Ans: Section 35A of the Banking Regulation Act,

1949

21. In BSBDA (Basic Savings Bank Deposit Account)

the credits in a financial year does not exceed

rupees:

Ans: Rs. 1 lakh

22. In BSBDA (Basic Savings Bank Deposit Account)

the balance at any point of time does not exceed

rupees:

Ans: Rs. 50,000

23. In BSBDA (Basic Savings Bank Deposit Account)

the withdrawals and transfers in a month does not

exceed rupees:

Ans: Rs. 10,000

24. At which rate RBI give loans to commercial

banks?

Ans: Repo rate

25. Full form of CASA:

Ans: Current Account Saving Account

26. In what denominations Commercial Paper (CP)

can be issued?

Ans: Rs. 5 lakh

27. What is the minimum denomination of Treasury

bills to issue in India?

Ans: Rs. 25,000

28. Who cannot issue Certificate of Deposit (CD)?

Ans: Regional Rural Banks (RRBs) and Local Area

Banks (LABs)

29. Expand ASBA:

Ans: Application Supported by Blocked Amount

30. Depositor Education and Awareness Fund

(DEAF) is maintained with:

Ans: RBI

31. Cash Reserve Ratio (CRR) is the amount of

funds that the banks have to keep with:

Ans: Central Bank (RBI)

32. What is the maximum amount per transaction

NEFT limit for cash-based remittances to Nepal?

Ans: Rs. 50,000

33. What does CAR stands for?

Ans: Capital Adequacy Ratio

34. IFSC code consists of _____ alpha numeric

code.

Ans: 11 digits

(The IFSC is an 11 digit alpha numeric code, with

the first four digits identifying the bank, fifth is

numeric (kept 0) and the last six digits represent

the bank branch.)

35. When money is lent or borrowed for one day or

on overnight basis it is known as:

Ans: Call Money

36. When money is lent or borrowed for between 2

days and 14 days it is known as:

Ans: Notice money

37. When money is lent or borrowed for a period of

more than 14 days, it is known as:

Ans: Term money

38. Treasury Bills and Certificate of Deposit are

considered as the ____instruments.

Ans: negotiable money market

39. Commercial Paper (CP) is an unsecured money

market instrument issued in the form of a _____.

Ans: Promissory note.

40. What is the upper limit in Public Provident Fund

(PPF)?

Ans: Rs. 1.5 lakhs

41. As per RBI guidelines, with effect from April

1, 2012, the validity period of Cheques, Demand

Drafts, Pay Orders and Banker's Cheques is _____.

Ans: 3 months

42. What is the time limit for an asset or loan to

be declared as Non-Performing Asset?

Ans: 90 days

43. Deposit Insurance and Credit Guarantee

Corporation (DICGC) does not cover:

Ans: Primary co-operative societies

44. RBI measure to liquidate the market:

Ans: Repo rate.

45. Full form of EFT:

Ans: Electronic Fund Transfer

46. Fastest mode of transaction:

Ans: RTGS

47. Alphanumeric code on cheque is known as:

Ans: Indian Financial System Code (IFSC)

48. Bank pays interest on savings account?

Ans: Daily Basis

49. What is the loan limit for education under

priority sector for studies abroad?

Ans: Rs. 20 lakh

(Loans to individuals for educational purposes

including vocational courses upto Rs.10 lakh for

studies in India and Rs. 20 lakh for studies abroad

are included under priority sector.)

50. RuPay Card is an Indian version of credit/

debit card is launched by which organization:

Ans: NPCI (National Payments Corporation of India)

51. Fixed Deposit (FD)Account may be opened for a

minimum period of:

Ans: 7 days

52. What is the minimum amount required to open

a Fixed Deposit (FD)?

Ans: Rs.1000

53. The Banks has converted all ‘no - frills'

accounts’ into:

Ans: Basic Savings Bank Deposit Accounts

54. 'Pradhan Mantri Jan Dhan Yojana' is a Scheme

for:

Ans: Financial inclusion

55. How much overdraft facility to be provided in

'Pradhan Mantri Jan Dhan Yojana' scheme?

Ans: Rs. 5,000

56. In CBS, C stands for:

Ans: Core

57. In CRAR, A stands for:

Ans: Assets (Capital to Risk Weighted Assets Ratio)

58. IMPS - Immediate Payment Service is an

interbank electronic instant mobile money transfer

service through mobile phones in India, the facility

is provided by:

Ans: NPCI (National Payment Corporation of India)

59. The Central Bank of India has adopted new

measure of inflation:

Ans: Consumer Price Index (CPI)

60. When a cheque is torn into two or more pieces

and presented for payment, such a cheque is

called:

Ans: mutilated cheque

61. How much fee charged to file a complaint

under Banking Ombudsman? Ans: Banking

Ombudsman does not charge any fee

62. Who is the appellate authority in Banking

Ombusdsman?

Ans Deputy Governor of RBI 63. If any customer is

not satisfied by the decision of Banking

Ombudsman, customer can appeal against the

award before the appellate authority within how

many days from the date of receipt?

Ans 30 days

64. ATMs or Cash Dispensing machine which are

owned and operated by Non-Banking Financial

Companies are called:

Ans: White Label ATMs.

65. RBI gave in-principle for Banking license to:

Ans: IDFC and Bandhan

66. Minimum capital requirement for new banks in

private sector is:

Ans: Rs. 500 crore

67. A Non-Banking Financial Company (NBFC) is a

company registered under the:

Ans: Companies Act, 1956

68. Minimum capital requirement for Non-Banking

Financial Company (NBFC) is:

Ans: Rs. 500 crore

69. The NBFCs are allowed to accept/renew public

deposits for a minimum period of:

Ans: 12 months ( and maximum period of 60

months)

70. A NBFCs cannot offer interest rates higher

than the ceiling rate prescribed by RBI? What is

the present ceiling?

Ans: 12.5 per cent per annum

71. Minimum capital requirement for Foreign banks

that want to set up operations in India is:

Ans: Rs. 500 crore

72. What is the minimum paid-up capital

requirement of both small banks and payments

banks in India?

Ans: Rs. 100 crore

73. RBI extended the timeline for full

implementation of Basel III norms till:

Ans: 31 March 2019

74. SLR ((Statutory Liquidity Ratio)is the amount

a commercial banks needs to maintain in the form

of _______before providing credit to its

customers.

Ans: cash, or gold, or govt. approved securities

(Bonds)

75. _______ is the rate at which banks borrow

funds overnight from the Reserve Bank of India

(RBI) against approved government securities.

Ans: Marginal Standing Facility (MSF)

76. Who issues Treasury bills (T-bills) in India?

Ans: Government of India

77. Treasury bills are available for a minimum

amount of:

Ans: Rs. 25,000

78. Minimum & Maximum Limit of NEFT:

Ans: no limit

79. What is the rate of interest rate on provident

fund for the current fiscal?

Ans: 8.75%

80. Govt. to implement GST (Goods & Services Tax)

new indirect tax regime from:

Ans: 1st April 2016

81. RBI extends deadline for exchanging pre-2005

currency from June 30, 2015 to

Ans: December 31, 2015

82. How much amount RBI allows in 'Tap and pay'

transactions without PIN?

Ans: Rs. 2000

83. RBI lifted a ban on carrying Indian bank notes

of Rs 1,000 and Rs. 500 denominations to and

from:

Ans: Nepal and Bhutan

84. C stands for in "KYC":

Ans: Customer

85. Pension scheme for unorganized sector:

Ans: Swavalamban

86. Full form of REIT:

Ans: Real State Investment Trust

87. Forward Market Commission merge with:

Ans: SEBI

88. Purpose of starting Minor account for 10 years

children:

Ans: Financial inclusion

89. Full form of CVV:

Ans: Card Verification Value

90. Bank of International Settlement headquarter:

Ans: Switzerland

91. Who appoints Banking Ombudsman officer?

Ans: RBI

92. IFRS full form:

Ans: International Financial Reporting Standards.

93. Corporate Social Responsibility committee

headed is by Ans: Anil Baijal

94. Which is the Regulatory body for RRBs?

Ans: NABARD

95. RBI policy related to money laundering?

Ans: Know Your Customer

96. Mutual funds regulated by:

Ans: SEBI (Securities and Exchange Board of India)

97. What is the full form of MTSS?

Ans: Money Transfer Service scheme

98. How much amount of money can RBI lend to a

bank?

Ans: 2% of NDTL

99. What RBI does to Increase its Monetary Base?

Ans: OMO Open Market Operations

100. Which rate does RBI Reduces to Increase

liquidity in market?

Ans: Repo Rate

101. After completion of 15 years, Public Provident

Fund (PPF) can be extended up to how many

years?

Ans: 5 years

102. Short term Money lending process is known as:

Ans: Call Money

103. Treasury bill tenure:

Ans: 91 days, 182 days, 364 days

104. Minimum limit for medium scale enterprises is

Rs. 5 Cr. what is maximum limit?

Ans: 10 Cr.

105. Prime Lending Rate is replaced by:

Ans: Base rate

106. Banks cannot grant Loan below which rate:

Ans: Base Rate

107. If RBI reduces CRR, what happens:

Ans: Credit Supply increases, loans get cheaper.

108. Name the scheme to include every people

under banking system:

Ans: Financial Inclusion

109. Special Drawing Right (SDR) is a monetary

unit of:

Ans: IMF

110. Cheque which is not crossed is called:

Ans: Open cheque

111. Teaser rates are related to which type of

loans:

Ans: Home loans

112. What is Teaser loan?

Ans: If a bank offers a slightly lower rate in the

initial years and higher rate in later years, it is

called a teaser loan.

113. The RBI policy rate which is purely an

indicative rate used by RBI to signal long – term

outlook on interest rates is:

Ans: Bank rate

114. The term ‘pre – shipment’ finance relates to:

Ans: export credit

115. A receipt listed in India and traded in rupees

declaring ownership of shares of a foreign

company:

Ans: Indian Depository Receipt (IDR)

116. With effect from July 2012, for calculating of

lending rates, the RBI has advised banks to switch

over to the:

Ans: Base Rate systems

117. Mobile banking fund transfer limit in a day:

Ans: Rs. 50,000

118. The seed capital of Bhartiya Mahila Bank is:

Ans: Rs.1000 crore

119. “Lender of the Last Resort” by Banks is

known as:

Ans: RBI

120. “Fixed deposit” is also referred to as:

Ans: Term Deposit

121. The holidays for the banks are declared as

per:

Ans: Negotiable Instruments Act

122. In banking business, when the borrowers avail

a term Loan, initially they are given a repayment

holiday and this is referred as:

Ans: Moratorium

123. Regulator of Micro, Small and Medium

enterprises in India:

Ans: SIDBI (Small Industries Development Bank of

India)

124. A worldwide financial messaging network which

exchanges between banks and financial institutions

is known as:

Ans: Structured Financial Messaging System

(SFMS)

125. The term “Smart Money” refers to:

Ans: Credits Card

126. The maximum deposit amount insured by

DICGC?

Ans: Rs. 1 lakh per depositors across all banks

127. With reference to a cheque which is the

‘drawee bank’?

Ans: The bank upon which the cheque is drawn

128. In which of the following fund transfer

mechanisms, can funds be moved from one bank to

another and where the transaction is settled

instantly without being bunched with any other

transaction?

Ans: RTGS

129. Bad advances of a Bank are called:

Ans: Non – performing Asset

130. By increasing repo rate, the economy may

observe the following effects:

Ans: rate of interest on loans and advances will be

costlier

131. Increased interest rates, as is existing in the

economy at present will:

Ans: mean higher cost of raw materials

132. The sole authority to issue and manage

currency in India:

Ans: RBI

133. In India, one- rupee coins are issued by:

Ans: Govt. of India

134. Fixed deposits and recurring deposits are:

Ans: repayable after an agreed period

135. When a bank returns a cheque unpaid, it is

called:

Ans: dishonour of the cheque

136. What is ‘Demat Accounts’?

Ans: Accounts in which shares of various companies

are traded in electronic form

137. When the rate of inflation increases:

Ans: purchasing power of money decreases

138. Banks in India are regulated under:

Ans: Banking Regulation Act, 1949

139. Banking sector falls under which of the

following sectors?

Ans: Service Sector

140. ASBA scheme is related to the purchase of:

Ans: IPO

141. In a bank, which of the following are the usual

types of accounts?

Ans: Current accounts, Savings bank accounts and

Term deposit accounts

142. The most powerful tool used by the Reserve

Bank of India to control inflation is to:

Ans: raise interest rates

143. NEFT and RTGS in banking terminology speak

of:

Ans: electronic fund transfer from bank to bank

144. The ownership of public sector banks rests:

Ans: jointly with the Government of India and the

shareholders from the public

145. If a cheque is postdated, the bank on which it

is drawn:

Ans: will not honour the cheque before the date of

the cheque

146. Regulator of Capital Market in India:

Ans: SEBI

147. First Indian Bank to introduce credit card:

Ans: Central Bank of India

148. RBI nationalized in:

Ans: 1949

149. Loans of very small amounts given to low

income groups is called:

Ans: Micro Credit

150. RBI established in:

Ans: 1935.

Important questions for internal exam of account to be held on 2 Nov