One liner Questions and Answers for
Bank Promotion Exams (Set 4)
1. Stand by
Letter of credit is just like: Bank Guarantee
2. State Level
Bankers’ Committee is chaired by? CMD or ED of SLBC Convener Bank
3. State Level
Bankers’ Committee meetings are held on basis? quarterly
4. Suspicious
Transaction report is sent to FIU within: 7 days from confirmation of
suspicion.
5. The charge
levied by banks for underutilization or non-utilization of sanctioned CC/OD
limits is called: Commitment charge.
6. The charge on
stocks is created by: Hypothecation (also by pledge or lien)
7. The
collateral security requirement is waived on KCC for an amount up to? Rs.1.60
lac
8. The
CRILC-Main Report shall be submitted on a monthly basis if aggregate exposure
is Rs…….. Cr or above. Ans – 5
9. The Distt.
Level Review Committee (DLRC) meeting should be held under Lead Bank Scheme? Quarterly
10. The
following routes are available for borrowers under External Commercial
Borrowing? Approval route and
automatic route
11. The interest
rate at which RBI rediscounts bills of commercial banks is called: Bank Rate
12. The Lead
Distt. Manager under Lead Bank Scheme is required to convene public meeting at
various locations in the district. Ans -half yearly
13. The limit
sanctioned is Rs 3 lac and margin is 25%. The borrower wants to avail the limit
fully. How much stock is required to be brought by him? Rs 4 lac
14. The
long-term loan limit under KCC should be sanctioned considering the investment
such as land development, minor irrigation, farm equipment etc. for a period up
to. Ans – 5 years
15. The margin
requirement is not applicable on KCC for an amount up to? Rs.1.60 lac
16. The
percentage of Capital Conservation Buffer (CCB) to be maintained Ans – 2.5%
17. The term
Bulk Deposit means single Rupee term deposits of …… Ans – Rs.2 cr and above
18. Time limit
to sue in case of cheque return due to insufficient funds: One month from the
date of cause of action i.e. 1 month from 15th day on which notice of dishonour
received by drawer.
19. Timeline for
auto-reversal for failed transactions using authorized Payment Systems (ATM,
POS, AEPS) is T+…….days.:- 5
20. UCP 600 is
maintained and revised by: International Chamber of Commerce (ICC).
21. UCPDC full
form: Uniform Customs and Practices for Documentary Credits
22. UFCE full
form is: Unhedged Foreign Currency Exposure
23. Unclaimed
deposits with banks which have not been claimed for last 10 years will be
transferred to: Depositor Education and Awareness Fund (DEAF).
24. Under KCC
scheme, the marginal farmer can be sanctioned a flexible limit of. Ans
Rs.10000 to Rs.50000
26. Under
SARFESAI, appeal against decision of DRT can be made to DRAT within days and if
appeal by borrower, he should deposit % of bank’s claim with DRAT: 30 days;
50%
27. Uniform
savings bank rate by RBI upto: 1 Lakh
28. Up to what
amt no collateral in National Urban Livelihood Mission: No collateral up to
any amount. In NRLM no collateral up to Rs 10 lakh.
29. Walk in
customer deposit amount Rs…………………….. and above to verify KYC: RS 50,000
30. What are the
total number of digits in Aadhar Card: 12
31. What
documents are required for opening a small account? Self attested photo and
address
32. What is a
bill of exchange – unconditional undertaking/ unconditional order: Unconditional
order.
33. What is a
General crossing? Drawing two parallel lines on face of a cheque
34. What is a
General crossing? Writing two parallel lines on the face of the cheque with
or without and company or any abbreviation thereof.
35. What is a
Promissory note? Unconditional undertaking
36. What is a
sans recourse endorsement – conditional endorsement, restrictive endorsement,
facultative endorsement, per pro endorsement, none of these: None of these. In
sans recourse endorsement, endorser excludes its liability.
37. What is
Accrual concept: Every income or expense is taken in to account when becomes
due irrespective of the fact whether it is received or paid or not.
One-liner Questions and answers for Bank Promotion Exams (Set 2)
38. What is
conversion? Dealing with others property without their consent.
39. What is Debt
securitization: Converting illiquid financial assets in to liquid marketable
securities.
40. What is full
form of CRAR? Capital to Risk weighted assets ratio
41. What is full
form of FDI? Foreign Direct Investment
42. What is full
form of IFSC: Indian Financial System Code
43. What is full
form of ULIP? Unit Linked Insurance Plan
44. What is
Letter of Credit? Undertaking by a bank to make payment to beneficiary on
submission of documents under LC.
45. What is
lien? Right of creditor to retain possession of goods and securities of
debtor till creditor’s dues are paid.
46. What is
material alteration? When a change is made in a cheque in such a way that it
speaks a different language than what it originally spoke.
47. What is
mortgage: Transfer of interest in specific immovable property to create
security for a debt
One-liner Questions and Answers for Bank Promotion Exams (SET 1)
48. What is
National Financial Switch (NFS)? Largest network of shared automated teller
machines (ATMs) in India run by the National Payments Corporation of India
(NPCI).
49. What is
NOSTRO account? Account of a bank in India with a correspondent bank abroad
50. What is
noting: Recording the fact of dishonor of a bill or promissory note with
Notary public
51. What is
Pari-Passu Charge when loan has been sanctioned by more than one bank in
consortium? In case of default, the sale proceeds of security will be shared in
the ratio of outstanding within sanctioned limits.
52. What is
payment in due course for a cheque: Payment as per apparent tenor of
instrument without having any reason to believe that the person getting the
payment is not entitle thereto.
53. What is Repo
transaction? Sale of Govt securities by banks to RBI with a promise to
repurchase after sometime.
54. What is
Rupay: Indian domestic card scheme conceived and launched by the National
Payments Corporation of India (NPCI)
55. What is
special crossing: Writing name of a bank on a cheque with or without two
parallel lines.
56. What is the
bankers-customer relationship in case of deposits? Debtor – Creditor
57. What is the
impact of Not negotiable crossing on a cheque? Title of Transferee will not
be better than title of transferor.
58. What is the
liability of a bank in case of payment of forged cheque? Bank is liable to
drawer for having made payment without authority as also for wrongful dishonor
of another cheque due to insufficient funds.
59. What is the
Limitation period of a demand Promissory Note? 3 Year from date of DPN
60. What is the
limitation period of mortgage? 12 years
61. What is the
lock in period of PPF account? 15 years
62. What is the
main difference between Term Loan and Deferred Payment Guarantee: Outlay of
Funds
63. What is the
maximum amount of claim that can be referred to Lok Adalat? Rs 20 lakh
64. What is the
maximum amount of loan that can be granted under DRI: Rs 15000
65. What is the
maximum and minimum limit for maintenance of CRR? No minimum or maximum as
per RBI Act. It is decided by RBI.
66. What is the
maximum fine that can be awarded on dishonour of a cheque due to insufficient
funds? Double the amount of cheque
67. What is the
maximum imprisonment that can be awarded on dishonour of a cheque due to
insufficient funds? 2 years
68. What is the
maximum period for which FCNR(B) and NRE deposits can be accepted? 5 year
and 10 year respectively.
69. What is the
minimum and maximum amount that can be remitted under RTGS? Rs 2 lac and no
limit
70. What is the
minimum paid capital required for setting up a payment bank? Rs 100cr
71. What is the
normal repayment period of long-term loan under KCC? 5 years
72. What is the
objective of selling mutual fund product by a bank? To earn non-interest
income
73. What is the
Purpose of nomination? To settle claims easily and quickly in case of death
of depositor
74. What is the
relation between debenture holder and company: Creditor and debtor
75. What is the
relation between purchase of a DD and Bank? Creditor and Debtor
