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2015

Little Awareness - FAQs relating to Banking

Q 1. MICR code consists of how many digits?

9 digits. (First three digits denotes city, next three digits representing the bank and the last three digits representing the bank branch).

Q 2. What is the minimum limit in RTGS system?

Rs. 2 lakhs (there is no upper limit in RTGS).

Q 3. What is full form of CTS?

Cheque Truncation System.

Q 4. Under which service, customers may access theirbank account and perform basic transactions from any of the member branch offices?

Core Banking Solution (CBS).

Q 5. Exchange of cash flow in different currency is known as:

Currency Swap.

Q 6. Assets or loans which stop performing after 90 days is known as:

Non Performing Asset (NPA).

Q 7. Who controls the Monetary Policy in India?

RBI (Reserve Bank of India).

Q 8. Which card is issued by NPCI (National Payments Corporation of India)?

RuPay Card.

Q 9. Definition of Current Account deficit:

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.

Q 10. Full form IFSC –

Indian Financial System Code.

Q 11. Commercial paper can be issued for a maximum period of:

365 days or 1 year.

Q 12. The Mutual funds in India follow accounting standards laid by:

SEBI (Securities and Exchange Board of India).

Q 13. Minimum amount for Certificate of Deposit has been fixed at:

Rs. 1 Lakh.

Q 14. AML is a term mainly used in the financial and legal industries. Expand the term AML:

Anti Money Laundering.

Q 15. PIN is a number allocated to an individual and used to validate electronic transactions. Expand PIN:

Personal Identification Number.

Q 16. What is Repo rate?

It is the rate is the rate at which RBI lends money to the commercial banks.

Q 17. What is Stale Cheque?

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.

Q 18. What is Bancassurance?

The selling of life assurance and other insurance products and services by banking institutions.

Q 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?

Know Your Customer (KYC).

Q 20. Know Your Customer (KYC) guidelines are issued under:

Section 35A of the Banking Regulation Act, 1949

Q 21. In BSBDA (Basic Savings Bank Deposit Account) the credits in a financial year does not exceed rupees:

Rs. 1 lakh.

Q 22. In BSBDA (Basic Savings Bank Deposit Account) the balance at any point of time does not exceed rupees:

Rs. 50,000/-.

Q 23. In BSBDA (Basic Savings Bank Deposit Account) the withdrawals and transfers in a month does not exceed rupees:

Rs. 10,000/-.

Q 24. At which rate RBI give loans to commercial banks?

Repo rate.

Q 25. Full form of CASA:

Current Account Saving Account.

Q 26. In what denominations Commercial Paper (CP) can be issued?

Rs. 5 lakh.

Q 27. What is the minimum denomination of Treasury bills to issue in India?

Rs. 25,000/-.

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

Regional Rural Banks (RRBs) and Local Area Banks (LABs)

Q 29. Expand ASBA:

Application Supported by Blocked Amount.

Q 30. Depositor Education and Awareness Fund (DEAF) is maintained with:

RBI.

Q 31. Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with:

Central Bank (RBI).

Q 32. What is the maximum amount per transaction NEFT limit for cash-based remittances to Nepal?

Rs. 50,000/-.

Q 33. What does CAR stands for?

Capital Adequacy Ratio.

Q 34. IFSC code consists of _____ alpha numeric code.

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).

Q 35. When money is lent or borrowed for one day or on overnight basis it is known as:

Call Money.

Q 36. When money is lent or borrowed for between 2 days and 14 days it is known as:

Notice money.

Q 37. When money is lent or borrowed for a period of more than 14 days, it is known as:

Term Money.

Q 38. Treasury Bills and Certificate of Deposit are considered as the ____instruments.

Negotiable Money Market.

Q 39. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a _____.

Promissory Note.

Q 40. What is the upper limit in Public Provident Fund (PPF)?

Rs. 1.5 lakhs.

Q 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 _____.

3 months.

Q 42. What is the time limit for an asset or loan to be declared as Non-Performing Asset?

90 days.

Q 43. Deposit Insurance and Credit Guarantee Corporation (DICGC) does not cover:

Primary co-operative societies.

Q 44. RBI measure to liquidate the market:

Repo rate.

Q 45. Full form of EFT:

Electronic Fund Transfer.

Q 46. Fastest mode of transaction:

RTGS.

Q 47. Alphanumeric code on cheque is known as:

Indian Financial System Code (IFSC).

Q 48. Bank pays interest on savings account?

Daily Basis

Q 49. What is the loan limit for education under priority sector for studies abroad?

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).

Q 50. RuPay Card is an Indian version of credit / debit card is launched by which organization:

NPCI (National Payments Corporation of India).

Q 51. Fixed Deposit (FD)Account may be opened for a minimum period of:

7 days.

Q 52. What is the minimum amount required to open a Fixed Deposit (FD)?

Rs.1,000/-.

Q 53. The Banks has converted all ‘no - frills' accounts’ into:

Basic Savings Bank Deposit Accounts

Q 54. 'Pradhan Mantri Jan Dhan Yojana' is a Scheme for:

Financial inclusion.

Q 55. How much overdraft facility to be provided in 'Pradhan Mantri Jan Dhan Yojana' scheme?

Rs. 5,000/-.

Q 56. In CBS, C stands for:

Core.

Q 57. In CRAR, A stands for:

Assets (Capital to Risk Weighted Assets Ratio).

Q 58. IMPS - Immediate Payment Service is an interbank electronic instant mobile money transfer service through mobile phones in India, the facility is provided by:

NPCI (National Payment Corporation of India).

Q 59. The Central Bank of India has adopted new measure of inflation:

Consumer Price Index (CPI).

Q 60. When a cheque is torn into two or more pieces and presented for payment, such a cheque is called:

Mutilated cheque.

Q 61. How much fee charged to file a complaint under Banking Ombudsman?

Banking Ombudsman does not charge any fee.

Q 62. Who is the appellate authority in Banking Ombusdsman?

Deputy Governor.

Financial Management