Previous Years Recalled Questions for Bank Promotion Exams (Set 3)

Previous Years Recalled Questions for Bank Promotion Exams
(Set 3)

1. What is the full form of
PMFBY: Prime Minister Fasal Bima Yojna


2. If interest on Fixed Deposit
in the name of a Senior Citizen is more than Rs 10,000 in a financial year,
what will be rate of TDS if PAN No is not submitted: 20%.

3. DICGC provides insurance of
customers’ deposits with bank. In which ratio, the premium for this insurance
is borne by bank and customer: Bank will bear 100% of the insurance premium
payable to DICGC.

4. What is the limitation period
of Demand Promissory Note: 3 years from date of DPN

5. A cheque dated 31sept 2018, is
presented for payment to bank on 30 Sept 2018. What should the bank do? Bank
can pay the cheque if otherwise in order.


6. When an account becomes NPA,
what type of risk arises: Credit Risk.


7. In MICR cheques, what is the
transaction code for Demand Draft: 16


8. Which of the following is not
material alteration – Changing Order to Bearer Cheque, completing an incomplete
cheque, Cancellation of crossing: Completing an incomplete cheque


9. From the following data,
please calculate current liability and current ratio – Current asset:32; Net
working capital is 8: Current Liability will be 24 and Current Ratio will be
32/24 i.e. 4:3


10. Profit before Tax – 120; Tax
paid – 20; Annual Instalment of term loan – 70; Interest on term loan – 30;
Depreciation – 20; What will be the Debt service coverage ratio: 1.5: 1


11. What is the full form of HTM
for classification of Govt securities: Held till Maturity.


12. What is the full form of
NPCI: National Payment Corporation of India.

13. What is the full form of
CRAR: Credit to Risk Weighted Assets Ratio


14. In case of RRB, what is the
target for financing agriculture as part of Priority sector: 18% of total

15. Banking is defined under
which act: Banking Regulation Act


16. What is balance sheet: Statement
of Assets and Liabilities as on a date.


17. Which of the following is an
Intangible asset – Stock, Machinery, Capital, Goodwill: Goodwill

One liner Questions and Answers for Bank Promotion Exams (Set 4)

18. A and B have joint account
with condition Either or Survivor and X has been appointed as nominee. If A
dies, to whom the balance will be given – B or X or B plus legal heirs of A:
Will be given to B


19. What is the nature of charge
created on Shares: Lien or Pledge


20. What is the limitation period
for execution of a court decree: 12 years.

21. What is the maximum amount of
loan that can be sanctioned under Stand-up India Scheme: Rs 100 Lakh


22. On which of the following
securities, charge cannot be created by hypothecation? Shares


23. Grace period is available in
respect of which of the following: Usance Promissory Note and Usance Bill of


24. If time is not mentioned on a
Bill of Exchange, when it will be payable: It will be payable on demand.

25. When Net working capital will
be negative: When Current Liabilities are more than Current Assets.

26. What is the full form of NAV
in the context of Mutual fund: Net Asset Value.


27. What is the amount of
insurance under Prime Minister Jeevan Jyoti Bima Yojna: Rs 200,000


28. A cheque signed by Secretary
and Treasurer of a Club has been presented to the bank for payment. The bank
has already received a message that both of them died yesterday in a road
accident. Whether bank should pay the cheque: Yes cheque should be paid if
otherwise in order.


29. Which of the following is not
Officially valid document for proof of ID: Ration card.

30. What is the maximum amount of
overdraft that can be granted to account holder of Jan Dhan Yojna: Rs


31. The intermediaries appointed
by bank to provide door to door services as part of Financial Inclusion are
called: Business Correspondents.


32. As per Asset Classification
norms, Loans are classified into how many categories: Four. Standard, Sub
Standard, Doubtful and Loss.


33. What is full form of GDP: Gross
Domestic Product.


34. Which of the following is
Nodal Agency for PMEGP: Khadi & Village Industries Commission (KVIC)


35. In case of MICR Cheques,
first 9 digits represent Location Code. Of these 9 digits, first three digits
represent which of the following – station code; branch code; bank code: Station

36. Statutory Liquidity Ratio
(SLR) is defined in: Section 24 of Banking Regulation Act.

37. Limitation period for
mortgage: 12 years


38. An account becomes
inoperative if it is not operated for how much period: Two years


39. A cheque issued by a person
is dishonoured due to insufficient balance in the account. The holder sent
notice to drawer asking him to make payment within 15 days of receiving the
notice. After expiry of 15 days, within how much period holder or payee can
file a suit in the court of Metro Magistrate or 1st class magistrate: 1
month from the date of cause of action i.e. 15th day.


40. A loan has been given to a
limited company against hypothecation of stocks. Company is required to get the
charge registered with: Registrar of Companies.


41. A member of a Self-Help Group
wants to become a member of Joint Liability Group. What is the position? It is
allowed. (As per RBI guidelines issued in Nov 14 – the members of JLG will
continue to remain members of the SHGs and continue to participate in the
activities of SHGs as earlier. Banks may encourage creation of such enterprise
/ livelihood based JLGs within SHGs. Banks may finance these JLGs in addition
to the loan / credit limit extended to the SHGs.)

Part 4: TYPES OF CHARGES, SECURITIES & DOCUMENTATION with Multiple Choice Questions (MCQs) and answers

42. Debt Equity Ratio is 2:1;
Long Term Liability 20; Loss – 2; What is Tangible Net Worth: 8 (As Debt equity
ratio is 2:1 and Long-term liability is 20, net worth will be 10. Tangible net
worth = Net worth minus intangible assets i.e. loss of 2)

43. When a bank issues a Bank
Guarantee, what type of liability is created: Contingent Liability.

44. After taking over possession
of securities, the bank wants to sell the same. Before executing sale, how many
days’ notice is required to be given to the borrower and the Guarantor: 30
days’ notice.


45. As per RBI guidelines, an
asset would be classified as doubtful if it has remained in the substandard
category for a period of: 12 months


46. What is the relationship
between bank and customer in case of overdraft? Creditor and Debtor


47. Which of the following types
of lien is implied pledge – General Lien, particular lien, Banker’s Lien,
Negative Lien: Banker’s Lien


48. RRB are required to lend……….
of their total advances to Priority sector: 75%


49. When in a cash deposit made
by a customer in the bank, counterfeit note is detected, what should the bank
do? The bank will impound the note, no credit will be given to customer and
cashier will issue acknowledgement to the depositor.


50. When a crossing is called
Special Crossing? When name of a bank is written on the face of the cheque
within or without two parallel lines.

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