Previous Years Recalled Questions for Bank Promotion Exams
1. A DD was lost and duplicate
was issued after necessary formalities. Today, both original and duplicate are
presented to bank for payment. What should the bank do? Make payment of
duplicate and return original with the reason “Duplicate issued and paid”.
2. In case of doubtful accounts,
what is the rate of provision on secured and unsecured portion if the account
is doubtful for more than 3 years: 100% of the secured portion as well as
100% of the unsecured portion.
3. A cash credit or overdraft
account becomes out of order when: DP is allowed on stock statement which is
3 months old or outstanding is more than limit sanctioned or drawing power or
no credits in the account or credits are insufficient to recover the interest.
4. ABC Ltd has Profit before tax
75, income tax 30; interest on term loan 15; depreciation 10; interest on
working capital loan 8; term loan instalment 25; what will be the DSCR? 70/40
i.e. 1.75 (75-30+15+10) / (15 + 25)
5. What is the maximum amount of
loan that can be granted under Tarun category in the case of PMMY? Rs 10
6. If any advance, including
bills purchased and discounted, becomes NPA, what should be the treatment of
interest earlier credited to income account: The entire interest accrued and
credited to income account in the past periods, should be reversed if the same
is not realized. This will apply to Government guaranteed accounts also.
7. What is the maximum amount of
claim that can be referred to Lok Adalat: Rs 20 Lakh.
8. Under Senior citizen saving
scheme, ex-service man is treated as senior citizen at what age? 50 years.
9. RBI lends against govt
securities on which rate: Repo Rate
10. What is the maximum amount of
loan that can be given for creating Social Infrastructure as part of Priority
Sector: Rs 5 crore.
11. What is the rate of interest
for loan up to Rs 3 Lakh in case of DAY – NRLM: 7%
12. A loan to women will be
classified as weaker section under PRIORITY SECTOR, if the loan is up to: Rs
13. Loan granted to distressed
persons for repayment of loan to money lenders is called: Debt swap
14. BCs uses which type of machine
for their transactions: Biometric machine
15. Rupay card accidental and death
claim amount: Rs 1 lakh
16. Within how much time KYC should
be done again on accounts of low risk customers: once in 10 years.
17. Safe custody of Articles is
governed by which Act: Indian Contract Act.
18. What is the relationship between
bank and customer in case of Standing Instruction – Agent &Principal.
19. Fraud by sending an e-mail
claiming to be from a Bank regarding updating sensitive account information
like PIN, password, account number, it is called: phishing
20. What is the liability of a
partner in Partnership firm: Joint and Several. Every partner is liable both
as partner as well as in his individual capacity. Therefore, unlimited
21. Though it is not mandatory, still
partnership firms register the firm with Registrar of Firms. What is the reason
for the same: Because unregistered firm cannot file suit against debtors for
recovery of the dues
22. Provisions relating to CRR are as
per which Act: Sec42(1) of RBI Act
23. When a farmer undertakes
agriculture as well as does Dairy business on the farm, it will be what type of
farming: Mixed Farming
24. As per section 107 & 108 of
Indian Evidence Act, a person can be presumed to have died if he/she is missing
for: 7 years.
25. If a nomination has been made in
case of deposit accounts, what will be the status of nominee: Trustee of
26. What is the rate of provision in
case of NPA if the account is in D3 category: 100% of outstanding (Account
doubtful for more than 3 years)
27. NPA rules are not applicable to
loan against: NSC/KVP/Bank’s own deposit/LIP. (If loan guaranteed by Central
Govt then Asset classification and provisioning norms are not applicable till
Govt refuses to make payment.
28. How provision on Standard assets
is reported in the Balance Sheet of a bank? As part of Other Liabilities and
provisions on the Liability side of Balance Sheet.
29. For taking over possession of
securities charged to the bank under SARFAESI Act, bank is required to give. Notice
to borrower and guarantor: 60 days
30. Why lending bank insists
partnership firms for registration: Unregistered firms cannot file suit to
recover their due amount.
31. In case of trust account if a
trustee who had signed the cheque died and bank came to notice about his death,
what will the bank do if cheque is presented for payment? Bank will pay the
cheque if otherwise in order.
32. If an individual die without
writing Will, he is called: Died Intestate.
33. In case of accounts of Low risk
customers, Periodic updation of KYC documents shall be carried out by bank at
what interval? At least once in every ten years.
34. For availing loan under NRLM, SHG
should be in active existence at least since the last: 6 months as per the
books of account of SHGs and not from the date of opening of S/B account
35. Under Liberalized Remittance
Scheme, how much amount can be remitted abroad by a resident individual? USD
250000 in a financial year.
36. RBI uses Repo and Reverse Repo
for what purpose? For regulating liquidity in the System.
37. If counterfeit notes up to are
detected in a single cash deposit in the bank branch, bank is not required to
lodge FIR with police. Instead, bank should send a consolidated report and send
such notice to police at the end of the month? 4 (If 5 or more than 5 in
single deposit, then FIR is lodged)
38. What is the minimum and maximum
age under Atal Pension Yojna for joining the Scheme? Minimum age 18 years
and maximum age – 40 years.
39. In Atal Pension Yojna, pension
will start at the age of: 60 years.
40. In case of Loans under MUDRA,
what is the maximum amount of Loan under Tarun: More than Rs 5 Lakh up to Rs
41. Net Working Capital 24 and
Current Liability 12. What is Current Ratio: 3:1 (Current assets 36; current
42. Profit before tax Rs 150; Tax Rs
40; Depreciation Rs 30; Interest on Term Loan Rs 30; Annual instalment of term
loan Rs 70; calculate Debt Service Coverage ratio: 1.7 (Net Profit after Tax +
Depreciation + Interest on Term Loan)/ (Instalment of Term Loan + Interest on
Term Loan)33- due to failure internal system type of risk
43. The risk due to inadequacy or
failure of systems, process or people or due to external events is called: Operational
44. Equitable mortgage is created by
which of the following methods – (a) By deposit of title deeds with creditor;
(b) By signing a Bond; (c) By executing a mortgage deed; (d) By deposit of a
mortgage deed: By deposit of title deeds with creditor to create security
for a debt
45. What is the amount of penalty if
there is a delay up to 10 days for registration of equitable mortgage with
CERSAI? Rs 100 for loan up to Rs 5 lakh and Rs 200 for loan more than Rs 5
46. What is the period of Limitation
in case of suit against Guarantor: 3 years from date of demand from the