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[READ TO SUCEED- PROMOTION MATERIAL – 2016- CHENNAI CIRCLE ]

1

CONTENTS

S.NO.

CHAPTERS

PAGE NUMBER

1 REMITTANCES & COLLECTION 2

2 CASH DEPARTMENT PROCEDURES 6

3 SAFE CUSTODY /SECURITES/SAFE DEPOSIT ARTICLES/SAFE DEPOSIT

LOCKERS

10

4 GOVERNMENT BUSINESS

13

5 MISCELLANEOUS

19

6 KYC GUIDELINES 27

7 LIABILITY PRODUCTS

30

8 ASSET PRODUCTS 65

9 CBS 124

10 IT PRODUCTS AND RELATED SECURITY ASPECTS

142

11 ALTERNATE CHANNELS 165

12 RATIONALES 203

13 SITUATIONAL ANALYSIS 220

14 SME ASSETS 252

[READ TO SUCEED- PROMOTION MATERIAL - 2016]

2

REMITTANCES & COLLECTION

1. Image based cheque processing is called

a. Cheque Truncation system

b. Cheque Passing system

c. Cheque Transaction system

d. Cheque Transfer system

2. Immediate credit of outstation cheques is up to

a. Upto and inclusive of Rs 25,000.00

b. Upto and inclusive of Rs 30,000.00

c. Upto and inclusive of Rs 50,000.00

d. None of these

3. Normal collection period between two metros

a. 14 days

b. 3 days

c. 7 days

d. 10 days

4. Normal collection period between one metro and state capital

a. 14 days

b. 3 days

c. 7 days

d. 10 days

5. Normal collection period between two centres

a. 14 days

b. 3 days

c. 7 days

d. 10 days

6. What is the compensation for delay in collection for beyond 14 days

a. FD rate for the corresponding period or SB rate which ever is higher

b. FD rate for the corresponding period

c. 1 % above SB rate

d. SB rate

7. What is the compensation for delay in normal collection period

a. SB rate

b. FD rate for the corresponding period

c. 1 % above SB rate

d. 2 % above SB rate


3

8. Usance bills are generally entitled to a grace period of

a. 7 days

b. 3 days

c. 15 days

d. None of these

9. A bill should be accepted by the drawee within __ hours of receipt of bill

a. 48 hrs

b. 24 hrs

c. 36 hrs

d. None of these

10. Bank‟s relationship in terms of Collection of Usance bills

a. Agent

b. Holder for value

c. Bailor

d. None of these

11. RBI Draft lapses in _ accounting years from the date of issue

a. 2

b. 3

c. 4

d. None of these

12. Relationship between Banker and purchaser of draft

a. Trustee and Beneficiary

b. Debtor and Creditor

c. Bailor and Bailee

d. None of these

13. Relationship between Banker and payee of draft

a. Trustee and Beneficiary

b. Debtor and Creditor

c. Bailor and Bailee

d. None of these

14. Limitation period of Usance bill is

a. 3 years from due date

b. 2 years from due date

c. 5 years from due date

d. None of these


4

15. Physical verification of IOI forms can be done in

a. Once in 3 months

b. Once in a month

c. Half yearly

d. None of these

16. In case of cancellation of draft, discharge over revenue stamp

to be obtained for drafts above a. Rs 2500/-

b. Rs 5000/-

c. Rs 10000/-

d. None of the above

17. Double signature is required for

a. Rs 1,50,000/-

b. Rs 1,00,000/-

c. Rs 50,000/-


18. Hologram sticker is affixed on drafts of

a. Rs 50,000/- and above

b. Rs 1,00,000/- and above

c. Rs 1,50,000/- and above


19. Draft is valid for

a. 6 months

b. 3 months

c. 12 months

d. None of these

20. Time limit for issue of duplicate draft

a. 2 days

b. 5 days

c. 7 days

d. None of these

21. If original and duplicate DD is presented for payment

simultaneously a. Original to be paid & duplicate should be returned

b. Duplicate to be paid & Original should be returned with the remark

“duplicate already paid”

c. Both should be returned

d. None of these


5

22. Issue of duplicate Bankers Cheque against stamped indemnity

a. COS 536

b. COS 537

c. COS 538

d. None of these

23. Outstanding in BC A/cs for more than _ years to be transferred

once in a year to_ a. 3 & Commission a/c

b. 3 & Charges a/c

c. 2 & Exchange a/c

d. None of these

REMITTANCES & COLLECTION

KEY

Q NO ANS Q NO ANS Q NO ANS Q NO ANS Q NO ANS

1 a 6 a 11 b 16 b 21 b

2 b 7 a 12 b 17 a 22 b

3 c 8 b 13 a 18 b 23 b

4 d 9 a 14 a 19 b

5 a 10 a 15 c 20 c


6

CASH DEPARTMENT PROCEDURES

1. Currency chest is the property of

a. RBI

b. Central Govt.

c. State Govt.

d. SBI

2. The department which takes policy decisions in notes and coins , administers Note

refund rules, rationalizes and reviews work system/procedures at the issue of office

a. Dept of Currency Management of RBI @ Central office, Mumbai

b. Dept of Currency Management of RBI @ Central office, Delhi

c. Dept of issue department of RBI @ Central office, Mumbai

d. None of these

3. Currency note printing presses owned by Govt. of India

a. Nasik

b. Dewas

c. Mysore

d. Salboni

e. a & b only

4. Currency note printing presses owned by RBI

a. Nasik

b. Dewas

c. Mysore

d. Salboni

e. c & d only

5. Coin mints are located at

a. Mumbai

b. Hyderabad

c. Calcutta

d. Noida

e. All the above

6. FICN means

a. Fake Indian Currency Note

b. Forgery Indian currency Note

c. Fake Indian coin and Notes

d. None of these


7

7. FCORD means

a. Fake Indian Currency Note Co-ordination Centre

b. Forgery Indian Currency Note co-ordination center

c. Fake Indian currency note Co-ordination Committee

d. None of these

8. BAS means

a. Biometric Authentication Solution

b. Biometric Authority Solution

c. Biometric Authentication system

d. None of these

9. Currency Transfer figures to be advised to

a. FSLO at LHO on daily basis

b. RBI on daily basis

c. GBU at LHO on daily basis


10. ICCOMS means

a. Integrated computerized currency operations and Management System

b. Intensified Computerized currency operations and Management

System c. Integrated Computerized currency operations and Management Solution

d. None of these

11. Strong room fitness certificate to be obtained

a. Quarterly

b. Half yearly

c. Every year


12. Notes accepted under Guarantee Bond scheme of denominations less than

a. Rs 500 /-

b. Rs 1000/-

c. Rs 100/-


13. Remittances accepted under Guarantee Bond scheme is to be entered in

a. Unexamined Remittances Register

b. Unexamined Remittances Received Register.

c. Unexamined Remittances Record Register.



8

14. Small coin depot is the property of

a. RBI

b. SBI

c. Government of India


15. Insurance of cash and other valuables would be done by

a. BPMM Dept (Budgeting Performance Monitoring &MIS)

b. BPMM Dept (Business Planning Monitoring &MIS)

c. Insurance Dept


16. Excess cash found in the branch/cash dept is credited to

a. Suspense a/c

b. Charges a/c

c. Sundry Deposit a/c


17. The person preparing the note packets for denomination upto Rs.100 is responsible for

a. Quality only

b. Quantity only

c. Both Quality and Quantity


18. Recounting is not necessary for denominations upto

a. Rs 100/-

b. Rs 500/-

c. Rs 50/-


19. Cash Management in ATMs by NCR/Diebold is called

a. BESTCASH

b. OPTICASH

c. OPTIMUMCASH


20. Currency transfer is

a. Cash deposits in Currency Chest

b. Cash withdrawal from Currency

c. Difference between deposits and withdrawals from Chest

d. None of these


9

21. GL Comp means

a. Difference between BGL and CGL cash Balance

b. Hanging Transaction Balance

c. Difference between BGL and Physical Cash Balance

d. None of these

22. Minimum Transaction in currency chest at any point of time

a. Rs 2 lacs & in multiples of Rs 50,000/-

b. Rs 1 lac & in multiple of Rs 50,000/-

c. Rs 50,000/- & in multiples of Rs 50,000/-

d. Rs 1 lac & in multiples of Rs 1.00 lac

23. One rupee coins form part of

a. Currency Chest

b. Small Coin Depot

c. Branch cash balance

d. None of these.

CASH DEPARTMENT PROCEDURES

KEY


1 a 6 a 11 c 16 c 21 a

2 a 7 a 12 c 17 c 22 b

3 e 8 a 13 a 18 a 23 a

4 e 9 a 14 c 19 b

5 e 10 a 15 a 20 c


10

SAFE CUSTODY /SECURITES/SAFE DEPOSIT ARTICLES/SAFE DEPOSIT LOCKERS

1. Relationship between Banker and customer in safe custody

a. Bailor-Bailee

b. Bailee-Bailor

c. Debtor –Creditor


2. Bailor-Bailee is defined in

a. Sec 151 of Indian Contract Act

b. Sec 152 of Indian Contract Act

c. Sec 153 of Indian Contract Act


3. Scrips accepted for safe custody are entered in

a. Safe custody Ledger

b. Safe custody Register

c. Safe custody Binder


4. Scrip wise details are maintained in

a. Safe custody Ledger

b. Safe custody Register

c. Safe custody Binder


5. Balancing of safe custody Ledger/Register is done

a. Quarterly

b. Half yearly

c. Yearly


6. Bearer bonds like KVP/IVP/TDR/STDR are held in

a. Single custody of BM

b. Single custody of Cash in charge

c. Joint custody of BM and Manager(Cash)


7. Acknowledgement given to customers for receipt of scrips for safe custody is

a. Safe custody Receipt (COS 139 A)

b. Safe custody Receipt (COS 139 )

c. Safe custody Receipt (COS 139 B)



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8. When a scrip is withdrawn for renewal , it should be entered in

a. Securities Ex-custodian Register

b. Securities Ex-custody Register

c. Securities Ex-custodian Ledger


9. When Govt Security is sent for interest Collection it should be entered in

a. Securities Ex-custody Register

b. Interest Realised on Securties Register

c. Interest Realised on Securties Ledger


10. When scrips are sent for sale under instructions from the customer,

it should be entered in a. Securties EX-custody Register

b. Interest Realised on Securties Register

c. Securties and shares purchase Register


11. A narration of facts of the deposit of scrips for safe custody is

a. Memorandum of securities (COS 339)

b. Memorandum of securities (COS 340)

c. Memorandum of securities (COS 335)


12. Safe custody scrips should be delivered to the depositor only on his acknowledgement in a. cos 49 b. cos 39 c. cos 45 d. None of these 13. Nomination is available for safe custody under a. sec 45ZA of Banking Regulation Act

b. sec 45ZB of Banking Regulation Act c. sec 45ZC of Banking Regulation Act d. None of these

14. In case of joint accounts, at the time of delivery, acknowledgement is obtained in

a. COS 141R b. COS 142 R c. COS 143 R d. None of these


12

15. Maximum number of nominees in safe custody

a.3

b.2 c.1 d.4 16. Nomination facility for joint accounts a.2 b.3 c.1 d. not available 17. Locker agreement is executed on stamped agreement on a. COS 404 b. COS 403 c. COS 402 d. COS 401 18. Locker nomination facility is available under

a. sec 45ZA of Banking Regulation Act b. sec 45ZB of Banking Regulation Act c. sec 45ZE of Banking Regulation Act d. None of these 19. Search warrant of locker issued by IT dept should

a. bear the signature of an official not below the rank of Commissioner of IT (sec 132 of IT act) b. bear the signature of an official not below the rank of Deputy Commissioner of IT (sec 132 of IT act) c. bear the signature of an official not below the rank of assistant Commissioner of IT (sec 132 of IT act) d. None of these

SAFE CUSTODY /SECURITES/SAFE DEPOSIT ARTICLES/SAFE DEPOSIT LOCKERS

KEY

Q NO ANS Q NO ANS Q NO ANS Q NO ANS

1 b 6 c 11 a 16 d

2 a 7 a 12 a 17 a

3 a 8 b 13 c 18 c

4 b 9 b 14 a 19 a

5 b 10 c 15 c


13

GOVERNMENT BUSINESS

1. Passing of challan by Treasury officer/Head of Department a. Enfacement b. Defacement c. Verification d. None of these 2. Settlement of central Govt.S Transactions a. GAD, Navi, Mumbai b. GAD, LHO, Chennai c. FSLO, LHO, Chennai d. None of these 3. Settlement of central/state Govt. transactions with RBI if dealing /Focal point branches are at the same centre a. T+3 days

b. T+5 days c. T+1 day d. None of these

4. Commission on Govt. Business on receipts

a. Rs 50/- b. Rs 45/- c. Rs 65/- d. None of these

5. Commission on Govt. Business on Pension payment


6. Commission on Govt. Business on e- receipts


7. Sharing of commission between dealing branch and link branch

a. 75 :25 b. 25:75 c. 50:50 d. None of these

8. Commuted portion of pension can be restored

a. after 25 years from the date of communication b. after 50 years from the date of communication c. after 15 years from the date of communication d. None of these


14

9. ITRO is a

a. Negotiable Instrument b. Quasi Negotiable Instrument c. Bill of exchange d. None of these

10. ITRO credited through ECS

a. upto Rs 50,000/- b. upto Rs 25,000/- c. upto Rs 15,000/- d. None of these

11. Validity of ITRO is a. 3 months b. 6 months c. 9 months d. None of these

12. CIN under OLTAS stands for a. Challan Identification Number b. Challan Identity Number c. Challan Identifiable Number d. None of these

13. Bank-RBI relationship for conducting Govt. business a. Agent –Principal b. Principal- Agent c. Agent –Sub Agent d. None of these

14. The validity period of a bill passed by TO a. 5 days b. 10 days c. 15 days d. None of these

15. A SWO can issue Govt. Receipts without referring to cash officer upto


16. SBI conducts Govt. Business as per

a. Sec 45 of RBI Act b.Sec 35 of RBI Act c. Sec 42 of RBI Act d. None of these


15

17. Maximum deposit allowed in PPF account in a year

a. Rs 100000/- b. Rs 150000/- c. Rs 50000/- d. Rs 200000/-

18. No of nominees allowed in PPF and SCSS2004 Deposit schemes. a. 1 b. 2 c. More than one d.3

19. What is the periodicity of PPF account a. 10 years b. 15 years c. 5years d. None of these

20. Withdrawal is allowed in PPF account after a. 5 Years b. 6 Years c. 3 Years d. none of these

21. Rate of interest for PPF a. 8.70% b. 8.80% c. 8.75% d. None of these.

22. Quantum of loan available in PPF account a. 25% of the balance preceding 2 years b. 50% of the balance preceding 4 years c. 25% of the balance preceding 3 years d. None of these.

23. Rate of interest for PPF Loan a. 2% b. 1% c. 3% d. None of these.

24. PPF account can be extended for a. 5 years b. 10 years c. 15 years d. 5 years –any number of times.


16

25. Quantum of withdrawal in PPF account

a. 50% of the balance preceding 4 years b. 25% of the balance preceding 2 years c. 50% of the balance preceding 3 years d. None of these.

26. Penalty for not depositing Minimum deposit in PPF in a year.

a. Rs 50 / per year b. Rs 50/ c. Rs 100/ d. None of these.

27. Maximum deposit allowed in SCSS 2004 a. Rs 200000/ b. Rs 1500000/ c. Rs 150000/ d. None of these

28. Rate of interest for SCSS 2004. a. 9.00% b. 8.00% c. 9.20% d.9.30%

29. Interest on SCSS 2004 is paid at a. Monthly intervals b. Quarterly intervals c. Yearly d. None of these

30. Periodicity of SCSS 2004 a. 5 years b. 3 years c. 10 years d. 8 years

31. SCSS 2004 can be extended for a. 3 years b. 5 years c. 8 years d. One extension for 3 years

32. Penalty for premature closure of SCSS 2004 a. 1.5 % after 1 year and 1% after 2 years b. 2.5% after 1 year and 2% after 2 years c. No premature closure d. None of these.


17

33. Funds settlement in respect of State Govt. Transactions is done by

a. FSLO b. FPLB c. BOD LHO d. None of these.

34. OLTAS means a. Collection of Income Tax, Corporation Tax, Gift Tax& Wealth Tax b. Collection of Income Tax c. Collection of Excise d. None of these

35. EASIEST means a. Electronic Accounting System in Excise and Service Tax b. Electronic Accounting System in Excise c. Electronic Accounting System in Income Tax d. None of these.

36. Penal interest for delayed settlement of Govt Transactions a. Bank Rate + 2% b. Bank Rate + 3% c. Bank Rate + 4 % d. None of these.

37. GBSS means a. Govt. Business Software system b. Govt. Business Software Solution c. Govt. Business settlement system d. None of these

38. Nodal office for Central Govt. Transactions

a. GAD Navi Mumbai b. FSLO c. BOD LHO d. None of these.

39. After maturity of PPF and where the account is extended the withdrwal allowed during 16 th year

a. 50% of the balance preceding 4 years b. Maximum 60% of the balance as at the end of 15 th year c. Balance as at the end of 15 th year d. None of these.

40. No of times of deposits that can be made in PPF account in a year

a. 12 b. 15 c. 10 d. None of these.


18

GOVERNMENT BUSINESS KEY


1 a 11 a 21 a 31 d

2 a 12 a 22 a 32 a

3 a 13 a 23 a 33 a

4 a 14 b 24 d 34 a

5 c 15 c 25 a 35 a

6 c 16 a 26 a 36 a

7 a 17 b 27 b 37 b

8 c 18 c 28 c 38 a

9 b 19 b 29 b 39 b

10 b 20 a 30 a 40 a


19

MISCELLANEOUS

1. Life certificate is to be obtained from pensioners

a. Every November b. Every December c. Every April d. Any time

2. LIC policies accepted as security should be entered in

a. Security Register b. Safe custody Register c. Miscellaneous Securities Register d. None of these.

3. Maximum amount of cash withdrawal allowed for MCC at Non home Branch?

a. Rs 50,000/- for self only b. Rs1,00,000/- for self only c. Unlimited d. None of these

4. If the depositor wants no TDS to be deducted , and his age is above 60 years, he needs to

submit?

a. Form 15 G b. Form 15 H c. Either of these d. Form 60/61

5. Which committee recommended commencement of working hours of employees

a. Ghosh committee b. Goiporia committee c. Narasimhan Committee d. Abid Hussain Committee

6. RFIA for self Audit, the score is

a.30 b.20 c.10 d. None of these

7. In deceased settlement surety is waived upto

a. Rs 50,000/-

b. Rs 1 lac

c. Rs 2 lacs

d. Rs 5 lacs


20

8. Succession Certificate is applicable to

a. All dues

b. Debts and securities

c. All debts

d. None of these

9. The term i-Fams relates to

a. Stationery

b. Fixed assets

c. Charges

d. None of these

10. COS 37 refers to

a. Partnership deed

b. Partnership letter

c. HUF letter

d. None of these

11. Maximum number of members in SHG?

a. 10

b. 25

c. 20

d. None of these

12. While passing stationery entries, the cost of the consumption of stationery is debited

a. Stationery a/c

b. Charges a/c

c. Respective LHO

d. None of these

13. No surety is required for issue Duplicate Draft upto

a. Rs 50,000/-

b. Rs 1,00,000/-

c. RS 20,000/-

d. None of these

14. Self Help groups have been implemented on the recommendations of?

a. Narasimhan committee

b. Kalia committee

c. R V Gupta Committee

d. None of these


21

15. Welcome kits are supplied by

a. Stationery Dept

b. LCPC

c. LHO

d. None of these

16. Probate is

a. Will

b. Letter of Administration

c. Certified copy of will

d. None of these

17. Commuted portion of pension can be restored after

a. 10 years

b. 15 years

c. 5 years

d. 20 years

18. Our Bank Disaster Recovery server is at?

a. Chennai

b. Hyderabad

c. Bangalore

d. None of these

19. Maximum no of partners carrying on Banking Business

a. 10

b. 20

c. 7

d. 30

20. In a company , duties of the directors are available in

a. Memorandum of Association

b. Articles of Association

c. Prospectus

d. None of these

21. A bill should be accepted by the drawee within

a. 48 hours

b. 24 hours

c. 12 hours

d. None of theses


22

22. Clayton‟s rule is defined under?

a. Negotiable Instruments Act,1881

b. Sec 59 to 61 of Indian Contract Act.

c. Sec138 of NI act

d. None of these

23. Dayabhaga and Mitakshara are relating to

a. Partnership

b. Trust

c. HUF

d. All of these

24. Indemnity /Guarantees are defined in?

a. NI act, 1881

b. Indian Contract act,1956

c. SARFAESI Act

d. None of these

25. Within how many days CPIO has to be provide information under

RTI Act, 2005 a. 30 days

b. 40 days

c. 45 days

d. None of these

26. A person appointed by WILL to act on behalf of the deceased to look after his property is

known as?

a. Receiver

b. Executor

c. Successor

d. None of these

27. A Partnership form can have maximum no of partners?

a. 10 (incase of Banking Company 20)

b. 20 (incase of Banking Company 10 )

c. 25

d. None of these

28. Minimum and maximum no of members in a pvt ltd company

a. Minimum 2 Maximum 50

b. Minimum 1 Maximum 200

c. Minimum 7 Maximum 200

d. None of these


23

29. Common seal is applicable to

a. Society

b. Company

c. Partnership

d. Association

30. The Head of Hindu Undivided Family is

a. Kartha

b. Father

c. Manager

d. None of these

31. Banker‟s Lien is?

a. General Lien

b. Hypothecation

c. Implied Pledge

d. None of these

32. On which of the following EM charge cannot be created?

a. Plant & Machinary

b. Stocks

c. Movable Assets

d. All of the above

33. Relationship between banker and payee of Draft

a. Debtor and creditor

b. Trustee and Beneficiary

c. Creditor and Debtor


34. Clayton‟s rule is applicable in?

a. Demand loan

b. Term Loan and Overdraft

c. Cash credit and Overdraft

d. None of these

35. EM can be created at-?

a. All the centres

b. Notified centres only

c. All SRO centres

d. None of these


24

36. Which document constitutes the foundation of deceased claims?

a. Death Certificate

b. Succession certificate

c. Indemnity

d. None of these

37. Under COPRA the state Forum will deal with claims upto?

a. Rs 20 lacs

b. Above Rs 100 lacs

c. Above Rs 20 lacs upto Rs 100 lacs

d. None of these

38. Bank Guarantees will generally be issued for a period of?

a. 36 months

b. 18 months

c. 24 months

d. None of these

39. Banks will generally issue __type of BG‟s?

a. Financial Guarantees

b. Performance Guarantees

c. Deferred payment Guarantees

d. None of these

40. Bank Guarantee is a?

a. Term Loan

b. Contingent Liability

c. Cash credit

d. None of these

41. PPF account can be opened by?

a. Adult individuals

b. HUF

c. NRI

d. None of these

42. Interest on PPF account will be credited on?

a. 31 st January

b. 31 st March

c. 30th june

d. None of these


25

43. Death certificates are entered in

a. Branch Documents Register

b. Sundry Documents Register

c. Miscellaneous Document Register

d. None of these

44. Fee collected under RTI Act,2005 to be credited to

a. P&T Charges account

b. Commission account

c. Exchange account

d. None of these

45. Banks will accept Term Deposits upto 120 months, this regulation is

Stipulated by a.RBI b. IBA c. Govt. of India d. None of these

46. For deceased settlement, surety and affidavit are waived upto

a. Rs 100000/-

b. Rs 50000/-

c. Rs 500000/-

d. Rs 200000/-

47. In RFIA, WELL CONTROLLED Branches are those which score

a. 850 and above

b. 750 and above

c. 700 and above

d. 900 and above

48. In RFIA, the time limit for submitting compliance remarks for Group III

Branches a. 7 weeks

b. 8 weeks

c. 9 weeks

d. None of these.

49. Basic document for a Trust Account

a. Trust Letter

b. Trust Deed

c. Resolution

d. None of these


26

50. OTMS means

a. Offline Transaction Monitoring System

b. One time Money Settlement

c. ONLINE Transaction Monitoring System

d. None of these.

MISCELLANEOUS

KEY


1 a 11 c 21 a 31 c 41 a

2 c 12 b 22 b 32 d 42 b

3 a 13 b 23 c 33 b 43 b

4 b 14 b 24 b 34 c 44 a

5 b 15 b 25 a 35 b 45 b

6 c 16 c 26 b 36 a 46 c

7 d 17 b 27 b 37 c 47 a

8 b 18 a 28 b 38 b 48 a

9 b 19 a 29 b 39 a 49 b

10 b 20 b 30 a 40 b 50 a


27

KYC GUIDELINES 1. Who is the principal officer in respect of KYC in SBI

a. GM,BOD , Corporate centre

b. CGM,BOD ,Corporate officer

c. CGM of the circle

d. None of these

2. Under Categorisation of Risks, NRI accounts come under

a. Low risk

b. Medium risk

c. High risk

d. None of these

3. KYC/AML Cell is at

a. Jaipur

b. New Delhi

c. Hyderabad

d. None of these

4. KYC for High Risk customer are to be updated once in__years

a. 8 years c.10 years

b. 2 years d. 5 years

5. KYC is observed on __

a. 30th September c. 1st August

b. 25th December d. None of these

6. COS 37 refers to

a. Partnership deed

b. Partnership letter

c. HUF letter

d. None of these

7. Who is the principal officer in respect of KYC in SBI

a. GM,BOD , Corporate centre

b. CGM,BOD ,Corporate officer

c. CGM of the circle

d. None of these


28

8. Threshold limit for salaried person that has to be incorporated in the CIF

a. 1 month salary

b. 2 months salary

c. 3 months salary

d. None of these

9. Inoperative accounts are to be categorized under

a. Low risk

b. Medium risk

c. High risk

d. None of these

10. FIU means

a. Financial Intelligence Unit

b. Financial Inclusion Unit

c. First information Unit

d. None of these

11. KYC policy is reviewed by RBI every year

a. 1 st April

b. 1 st July

c. 1 st June

d. 1 st January

12. KYC for Medium Risk customer are to be updated once in__years

a. 5 years

b. 7 years

c. 8 years

d. 3 years

13. Trust accounts are classified under

a. High risk

b. Medium risk

c. Low risk

d. None of these

14. e-KYC means

a. Aadhar based KYC

b. Electronic submission of KYC

c. None of these


29

15. Partial Freezing means

a. Credits allowed but debits not allowed

b. Both credits and debits not allowed

c. Debits allowed but credits not allowed

d. None of these

KYC GUIDELINES

KEY

Q NO ANS Q NO ANS Q NO ANS

1 b 6 b 11 b

2 c 7 b 12 c

3 a 8 c 13 a

4 b 9 b 14 a

5 c 10 a 15 a


30

LIABILITY PRODUCTS - SAVINGS BANK ACCOUNT

01. Which of the following is to be followed for closure of SB account in the name of an illiterate depositor?

a) Thumb impression of depositor to be obtained on the account closure form

b) This has to be witnessed by an independent witness acceptable to the Bank

c) An official of the Bank should explain to the depositor that the account is being closed and no more money is available for payment

d) All the above 02. What is the procedure to be followed for paying the withdrawal in respect of a blind SB account holder, when the depositor is not available for receiving the payment?

a) The payment cannot be made

b) The payment can be made, the signature/thumb impression has to be attested by two independent persons/a magistrate under his court seal, pass book should be available

c) Payment can be made only if it a cheque payment

d) None of these 03. When one of the depositor in SB account is blind and the account is in the mode of operation of “Either or Survivor”/‟ Any one or survivor” what is the procedure for withdrawals from the account?

a) Withdrawal to be made both jointly

b) The withdrawal is allowed only to the blind person

c) The withdrawal is allowed only to the persons who is not blind

d) None of these 04. Which of the following is incorrect with regard to SB account maintained in the sole name of the blind person?

a) Cheque book should not be provided

b) Cheque book can be given, but withdrawals to be allowed under the signature of the duly constituted power of attorney

c) If the depositor insists on payment of withdrawal without ‗power of attorney„ then an under taking to be obtained in the prescribed format that the cheque facility is given at the customer„s risk

d) None of these 05. When the savings bank account is treated as dormant/inoperative?

a) When there are no withdrawals for a period of 12 months

b) When there are no transactions for a period of 24 months

c) When there are no deposits for a period of 12 months

d) None of these


31

06. What are the charges prescribed for activating Savings Bank inoperative/dormant account?

a) No Charges

b) No interest is paid if the account becomes inoperative / dormant

c) Rs.100/- per year

d) None of these 07. Annual review has to be carried for SB accounts which have become inoperative/dormant with balances of Rs…………..and above.

a) Rs.1000/- and above

b) Rs.10000/- and above

c) Rs.5000/- and above

d) None of these 08. If the balance in the inoperative/dormant SB account is more than Rs………….additional steps like contacting the depositor through e-mail/telephone and contacting the introducer of the SB account has to be done.

a) Rs.50000/-

b) Rs.25000/-

c) Rs.100000/-

d) None of these 09. Which of the following is not forming part of the definition of Small Account?

a) The aggregate of credits in a financial year does not exceed Rs.1 lac

b) The aggregate of all withdrawals and transfers in a month does not exceed Rs.10000/-

c) The balance at any point of time does not exceed Rs.50000/-

d) Introduction is mandatory for a Small Account

10. No deposit in cash less than Rs…………is accepted in SB account.

a) Rs.100/-

b) Rs.50/-

c) Rs.10/-

d) Rs.200/- 11. An account holder cannot withdraw an amount less than Rs……from SB account.

a) Rs.100/-

b) Rs.50/-

c) Rs.10/-

d) None of these


32

12. Which of the following statements are incorrect in respect of issue of Multi City Cheques to P segment savings bank customers?

a) All the P segment customers are issued 50 MCCs free of cost for the first time

b) Subsequent cheque books of MCCs are issued at a cost of Rs.2/- per leaf

c) The maximum limit for P segment customers for MCC facility is Rs.1000000/-

d) None of these 13.Liberalised KYC is available for a) Small Account

b) Basic Savings Account

c) Salary Account

d) None 14.Time allowed for the customer to present the KYC papers to a Branch of his choice after applying for opening an account through online. a) 30 days

b) 45 days

c) 20 days

d) 60 days 15.The total no of withdrawals allowed in Small and Basic Savings Account a) 5 withdrawals per month including ATM transactions

b) 4 withdrawals per month excluding ATM transactions

c) 5 withdrawals per month including ATM transactions

d) 4 withdrawals per month including ATM transactions 16. Main purpose of Introduction of Small & Basic Savings Account a) Financial Inclusion

b) Direct Cash Transfer

c) Both a & b

d) None 17. TCRN in Online SB opening refers to a) Temporary Customer Reference Number

b) Temporary Customer Regular Number

c) Temporary Customer Roll Number

d) None


33

KEY


1 d 6 a 11 b 16 c

2 b 7 c 12 d 17 a

3 c 8 b 13 a

4 a 9 d 14 a

5 b 10 c 15 d

SB YUVA

01. Savings Bank Yuva is product ………………

a) To entice the youth and bring them into our fold

b) It is applicable only to software professionals

c) SB Yuva account can be opened only to college students who have got placements during their final year of the degree

d) None of these

02. Which of the following is incorrect with regard to SBI Yuva?

a) Minimum age to open the account is 18

b) Only resident individuals can open the account

c) Maximum age to open the account is 30

d) If the depositor attains the age of 30 the account has to be converted as a normal SB account

03. Which of the following is incorrect in respect of SBI Yuva?

a) The account can be opened in joint names

b) All the account holders should satisfy the age criteria for opening SBI Yuva account

c) It is enough, if only the first account holder satisfies the age criteria in respect of SBI Yuva account

d) None of these

04. What is the minimum balance stipulated for SBI Yuva SB account?

a) Rs.1000/-

b) Rs.5000/-

c) Rs.10000/-

d) None of these

05. Which branches are designated for opening SBI Yuva SB account?

a) All CBS branchs

b) Only Metro and Urban branches

c) All branches except Rural branches

d) None of these


34

06. Which of the following is incorrect in respect of SBI Yuva SB account?

a) Minimum balance charges are NIL

b) 50 MCC cheques are issued free of cost at the time of opening the account

c) After that Rs.2/- is charged per leaf of MCC

d) None of these

07. Which of the following is correct in respect of SBI Yuva SB account?

a) Remittance charges are completely waived

b) One draft/bankers cheque is issued at par favouring educational institutions per calendar month

c) The above facility in (b) is available in all branches including the home branch

d) None of these

08. Free cheque collection is available for SBI Yuva SB account with a ceiling of Rs……………….per month

a) Rs.20000/-

b) Rs.15000/-

c) Rs.5000/-

d) None of these

09. Which of the following is not free of cost for SBI Yuva SB account?

a) SMS Alert

b) RINB facility

c) ATM card

d) Inter-core remittance

10. Immediate credit of outstation cheque for SBI Yuva SB account is restricted upto Rs……………….

a) Rs.15000/-

b) Rs.30000/-

c) Rs.25000/-

d) Rs.50000/-


35

11. With ATM card to Yuva SB account holder withdrawal is allowed upto Rs -------- per day

a) Rs 40000/-

b) Rs 50000/-

c) Rs 100000/-

d) Rs 25000/-

KEY


1 a 6 d 11 b

2 d 7 b

3 b 8 a

4 b 9 d

5 b 10 b


36

CORPORATE SALARY PACKAGE

01. What is the minimum number of employees stipulated for Corporate Salary Package (CSP) product?

a) 50 employees

b) 25 employees

c) 100 employees

d) None of these 02. What is the minimum pay-out stipulated under CSP per month?

a) Rs.1.50 lacs per month

b) Rs. 2.00 lacs per month

c) Rs.1.25 lacs per month

d) None of these 03. What is the minimum gross salary stipulated under CSP product per employee?

a) Rs.7000/- pm

b) Rs.10000/- pm

c) Rs.3500/- pm

d) Rs.5000/- pm 04. Discretion to relax the eligibility criteria in respect of CSP is vested with ……..

a) CGM of the Circle

b) DGM PBBU of the Circle

c) GM of the respective Net Work

d) Discretion is not available 05. The discretion to relax the eligibility norms under CSP can be considered only when there are minimum………………employees opening salary account with us.

a) 20 employees

b) 10 employees

c) 30 employees

d) 40 employees


37

06. Circle CGM can permit opening of CSP accounts for employees drawing Gross Salary less than Rs.5000/- only when….

a) All the employees of the organization opt for CSP account with us

b) The employees drawing gross salary less than Rs.5000/- is less than 20% of total employees

c) Both (a) and (b) should be satisfied

d) None of these 07. Which of the following is not a variant of Corporate Salary Package account?

a) Silver

b) Gold

c) Platinum

d) Bronze 08. For Silver variant of CSP account the eligible Gross Monthly Salary is between…

a) Rs.5000/- and Rs.20000/-

b) Rs.5000/- and Rs.10000/-

c) Rs.5000/- and Rs.15000/-

d) None of these 09. For Gold variant of CSP account the eligible Gross Monthly Salary is between…

a) Rs.20000/- and Rs.40000/-

b) Rs.20000/- and Rs.50000/-

c) Rs.20000/- and Rs.60000/-

d) None of these 10. For Diamond variant of CSP account the eligible Gross Monthly Salary is between……

a) Rs.50000/- and Rs.75000/-

b) Rs.50000/- and Rs.90000/-

c) Rs.50000/- and Rs.100000/-

d) None of these 11. For Platinum variant of CSP account the Gross Monthly Salary should be more than Rs…………….

a) Rs.90000/-

b) Rs.100000/- c) Rs.80000/-

d) None of these


38

12. What is the minimum balance required for opening a CSP account?

a) NIL

b) Rs.1000/-

c) Rs.500/-

d) None of these 13. What is the Annual Maintenance Charges levied on ATM cards issued to CSP account holders?

a) Rs.250/-

b) Rs.100/-

c) NIL

d) None of these 14. Which of the following variants of CSP account holders are not eligible to get ATM Gold International Debit Card?

a) Silver

b) Gold

c) Diamond

d) Platinum 15. What is the concession offered for issue of Multi City Cheques to High Value Savings Bank Account holders? a) Rs.2/- per leaf b) R.3/- per leaf c) Issued free of cost d) None of these 16. Which of the following customers of CSP are given SBI Vishesh customer status? a) Only Platinum customers b) All CSP account holders, except Silver variant customers c) Both Diamond and Platinum variant customers d) None of these 17. AAI- Air Accident Insurance Death cover for salary package accounts a) Silver 2 lacs, Gold 5 lacs, Diamond 10 lacs, Platinum 20 lacs b) Gold 5 lacs, Diamond 15 lacs, Platinum 25 lacs c) All variants Rs 10 lacs d) None of these


39

18. What is the concession offered to customers of CSP with Platinum variant in respect of allotment of lockers? a) Preferential allotment, but no concession in locker rent b) Preferential allotment, 25% concession in locker rent c) Preferential allotment, first year locker rent is waived d) None of these 19. What is the concession offered for CSP Platinum variant customers in respect of collection of cheques? a) Free collections upto Rs.15000/- three times a month b) Free collections upto Rs.5000/- three times a month c) Free collections upto Rs.25000/- three times a month d) None of these 20. Which of the following CSP variant customers are provided with PBBU newsletter with details on latest products and schemes? a) Diamond b) Both Diamond and Gold c) Only Platinum variant customers d) All CSP customers 21. The CSP variant of a customer is determined based on …………….months salary slip of an employee. a) Previous month b) Three months c) For new employees the copy of the offer letter is obtained d) Both (b) and (c) are correct

22. Which of the following is not correct in respect of CSP accounts of salaried employees? a) For opening CSP account of salaried employees photo identity cards issued by the employer can be accepted as proof of identity b) For proof of residence a letter from the employer in the specified format can be obtained c) Letter of request from the employer to open CSP account in the name of the employee is a must d) None of these 23. In Defence Salary Package Scheme,Brigadier and above will be given the variant of a) Gold b) Silver c) Diamond d) Platinum


40

24. In DSP Scheme, for Gold variant category of customers the no of Drafts that can be taken without charges is a) 5 b) 10 c) 25 d) No limit 25. Maximum amount per draft for which DSP account holders can take without charges is a) Rs 20000/- b) Rs 25000/- c) Rs 50000/- d) Rs 100000/-

26. Overdraft for salary package a/c holder

a) 2 months salary

b) 6 months salary

c) 4 months salary

d) 5 months salary

27. Maximum cap on Overdraft Limit for salary Package accounts

a) Silver 40000, Gold 75000, Diamond 150000, Platinum 200000

b) Silver 50000, Gold 75000, Diamond 150000, Platinum 200000

c) Silver 40000, Gold 75000, Diamond 100000, Platinum 200000

d) None of these

28. PAI (Death) cover for Defence Salary Package a/c holder

a) Rs 1 lac for Silver, Rs 5 lacs for Gold & Diamond, Rs 10 lacs for Platinum

b) Rs 3 lacs for Silver, Rs 5 lacs for Gold & Diamond, Rs 10 lacs for Platinum

c) Rs 3 lacs for all variants

d) None of these

KEY


1 b 8 a 15 c 22 d

2 c 9 b 16 c 23 d

3 d 10 c 17 b 24 b

4 b 11 b 18 b 25 c

5 b 12 a 19 c 26 a

6 c 13 c 20 c 27 a

7 d 14 a 21 d 28 b


41

TERM DEPOSITS

01. The tenure of Time deposits is limited to a maximum of 120 months. This stipulation is given by……………..

a) RBI

b) IBA

c) Based on the instructions of individual Banks

d) None of the above 02. Deposits of Rs…………………..and above are classified as Bulk Deposits.

a) Rs.15 lacs and above

b) Rs.1 crore and above

c) Deposits obtained from bulk customers

d) None of the above 03. Grant/contributions received in favour of newly born girl child from State Governments or other Government bodies can be deposited for a maximum period of………………..

a) 10 years

b) 21 years

c) 18 years

d) As applicable to normal deposits 04. A separate stamped receipt on Annexure – I is obtained in case of TDR/STDR is paid in cash and the amount is less than………………..

a) Rs.10000/-

b) Rs.20000/-

c) Rs.15000/-

d) Rs.50000/- 05. Which of the following details is/are not mentioned in the TD/STD receipt?

a) PAN number

b) Nomination registration details

c) Name of the nominee with the consent of the depositor

d) Date of submission of 15G/H


42

06. Which of the following is not correct in respect of e-TDR/e-STDR?

a) The name(s) and mode of operation will be as that of the debit account

b) The deposit proceeds, on maturity, will be transferred to the account from where e-TDR/e-STDR is formed c) Nomination facility as available from the debit account can be extended to the e-TDR/e-STDR

d) Depositor can add or delete the names in e-TDR/e-STDR through RINB 07. In case of a deposit account in joint names with mode of operation „Either or Survivor‟ the amount is paid before maturity with………

a) With the signature only one of the depositors

b) Signature of both the depositors should be obtained

c) Signature of the first person is obtained

d) None of the above 08. If a Term Deposit stands in two names with mode of operation „Either or Survivor‟ and if one of the depositor is deceased, then which of the following is correct?

a) It can be paid to the other person before maturity

b) It can be paid to the person surviving and to the legal heirs of deceased jointly

c) It cannot be paid before maturity

d) None of the above 09. Penalty on premature payment of TD/STD deposits is waived …..

a) If the deposit remained with the Bank for at least 7 days

b) If the deposit amount is below Rs.15 lacs

c) If the original tenor of the deposit is minimum 7 days to 180 days

d) All the above

10. If the joint depositors in the case of „Either or Survivor‟ and „Former or Survivor‟ wish to get payment of deposit in the case of TD/STD as per mandate even in case of before maturity which one of the following is correct?

a) Either or Survivorship form to be obtained at the time of opening the deposit account

b) This is not possible as per law

c) Can be paid only after maturity

d) None of these

11. The minimum amount that can be accepted in Term Deposit is …………. a) Rs.10000/-

b) Rs.1000/-

c) Rs.25000/-

d) None of the above


43

12. What is the procedure to be followed for issue of duplicate TD/STD receipt?

a) By obtaining indemnity bond from the depositor

b) Duplicate TD/STD receipt is issued only for those deposits against which loan has to be sanctioned

c) Duplicate TD/STD receipt is not issued, instead a fresh print out of advice is given to the depositor

d) None of these 13. In case of payment of deposit to the legal heirs of deceased in respect of TD/STD on maturity what is the interest rate applicable for the period from the date of death to the date of settlement of claim?

a) One per cent above the contracted rate of interest

b) The rate mentioned in the original receipt/advice

c) The rate current as on the date of maturity for a fresh deposit for the overdue period

d) Lower of (b) or (c) 14. If the Bank issues two or more receipts in favour of legal heirs/nominees by splitting the original deposit what is the procedure to be followed?

a) This is not allowed under existing systems and procedures

b) It can be done and no prepayment penalty to be levied, provided the original amount deposited and original term are maintained

c) This can be done as a special case, but Bank charges and penalties to be recovered

d) None of these 15. The maximum amount to be accepted in term deposits on behalf of a minor without production of guardianship certificate is ……………….

a) Rs.1000000/-

b) Rs.2000000/-

c) Rs.200000/-

d) None of the above

16. The photographs obtained from illiterate persons for TD/STD deposits at the time of deposits has to be renewed every ………………

a) Five years

b) Three years

c) Every year

d) None of these 17. The maximum amount stipulation in TD/STD in respect of minors can be exceeded in which of the following conditions?

a) If the guardian gives an undertaking that the deposit will be renewed till the minor attains majority

b) The maximum amount stipulation cannot be exceeded

c) It can be exceeded when the Legal Guardian is appointed by a court of law

d) None of these


44

18. Which of the following is incorrect in respect of nomination to TD/STD deposit accounts?

a) Nomination from illiterate persons has to be witnessed by two persons

b) Every time the deposit is renewed fresh nomination instructions to be obtained

c) Signatures in the nomination forms need not be witnessed

d) In STD/TD deposits with ‗Either or Survivor„ nomination can be given 19. In respect of Tax Deducted at Source (TDS) from interest paid on a deposit which of the following statements is/are incorrect?

a) Form 16A has to be provided to the depositors on quarterly basis

b) Form 16A can be generated only when return of TDS (Form 26Q/27Q) is electronically filed

c) Form 15G/15H has to be obtained in triplicate

d) None of these

20. Which of the following statements is incorrect in respect of additional interest payable to deposits of senior citizens?

a) Additional interest is payable to senior citizens of age 60 and above

b) Deposits have to be more than Rs.10000/-

c) The minimum tenor has to be one year

d) If the Karta of HUF is a senior citizen additional interest is paid to the HUF deposits also 21. In respect of Tax Deducted at Source (TDS) from interest paid on a deposit which of the following statements is/are incorrect?

a) Form 16A has to be provided to the depositors on quarterly basis

b) Form 16A can be generated only when return of TDS (Form 26Q/27Q) is electronically filed

c) Form 15G/15H has to be obtained in triplicate

d) None of these

KEY


1 b 6 d 11 b 16 b

2 b 7 b 12 c 17 a

3 c 8 b 13 d 18 b

4 b 9 d 14 b 19 d

5 d 10 a 15 c 20 d


45

ANNUITY DEPOSIT SCHEME

01. Which of the following is incorrect in respect of Annuity Deposit Scheme?

a) It enables the depositor to pay one time lump sum deposit and receive the same in EMIs comprising of principle and interest on reducing principle amount in Annuities

b) Interest is compounded at quarterly intervals and discounted to the monthly value

c) Payment of interest will start on the Anniversary date of the month following the month of deposit

d) None of these 02. Annuity Deposit is a………..

a) Demand deposit account

b) Recurring deposit account

c) Term deposit account

d) None of these 03. What is the maximum amount that can be deposited in Annuity Deposit account?

a) No Maximum

b) Rs.100000/- per year per individual

c) Rs.200000/- per year per individual

d) Maximum amount is decided based on clearance from Income Tax dept 04. What is the minimum amount that can be deposited in Annuity Deposit scheme?

a) Rs.50000/-

b) Rs.25000/-

c) Rs.100000/-

d) None of these 05. What is the minimum tenure in Annuity Deposit scheme?

a) 12 months

b) 24 months

c) 36 months

d) 60 months 06. What is the maximum tenure for which Annuity Deposit can be made?

a) Rs.60 months

b) 120 months

c) Maximum period of 25 years

d) None of these


46

07. Which of the following is incorrect in respect of Annuity Deposit Scheme?

a) A separate receipt designed for Annuity Deposit is issued to the customer

b) Existing TD/STD advice is issued with a rubber stamp affixed as ‗Annuity Deposit„

c) Universal Passbook is issued for withdrawals

d) None of these 08. Which of the following statement is correct in respect of Annuity Deposit Scheme?

a) Premature payment is permitted only in the case of death of the depositor

b) Premature payment is allowed, but interest will be paid 1% less than the applicable rate of interest for the period the deposit remained with the Bank

c) No penalty will be levied on premature payment

d) None of these 09. Which of the following statement is incorrect in respect of Annuity Deposit Scheme?

a) Loan may be granted up to 75% of amount of balance Annuity available

b) After the grant of loan further annuity will be deposited in to the loan account

c) Interest on loan account will be same as applicable to TD/STD account

d) None of these 10. Which of the following is incorrect regarding Annuity Deposit Scheme?

a) TDS is not applicable for Annuity Deposit Scheme

b) Interest calculation will be rounded off to the lowest Rupee value

c) Due to this there can be variation in the last Annuity installment

d) None of these

11. Minimum Annuity under Annuity Deposit scheme prescribed a) Rs 1000 b) Rs 2000 c) Rs 5000 d) Rs 500

KEY


1 d 5 c 9 d

2 c 6 b 10 a

3 a 7 a 11 a

4 b 8 a


47

SBI CAPGAINS PLUS 01.SBI CAPGAINS PLUS can be opened by way of a) SB account

b) TDR/STDR Account

c) Both a &b

d) Current account 02. Which of the following facilities is available for SBI CapGains Plus account? a) Cheque Book facility

b) ATM facility

c) Online Account opening facility

d) INB viewing rights 03. Cash withdrawals upto which amount is available in SBI CapGains Plus account? a) Rs.25000/-

b) Rs.50000/-

c) Cash withdrawals are not allowed

d) None of these 04. Which of the following accounts cannot be opened under SBI CapGains Plus scheme? a) Savings Bank Account

b) Term Deposit Account

c) Recurring Deposit Account

d) Special Term Deposit Account 05. Sale proceeds of sale of residential house to be invested in purchase of another residential /ready built house within …………………period to avoid capital gains tax. a) 5 years

b) 2 years c) 10 years

d) 4 years 06. What is the minimum amount in respect of SBI CapGains Plus scheme?

a) Rs.10000/-

b) Rs.1000/- in case of CapGains Term Deposits

c) No minimum is specified

d) None of these


48

07. Which of the following is correct in respect of interest rates for SBI CapGains Scheme?

a) Interest rate is as applicable to normal savings bank and term deposits account

b) Staff members/staff pensioners are not eligible for higher rate of interest

c) Interest rates for bulk deposits are more than the normal deposits under this scheme

d) Senior citizens will get 0.50% more interest compared to other depositors

08. SBI CapGains Scheme is operative in which of the following branches?

a) All CBS branches

b) All branches where Government Business is conducted

c) All branches except rural branches

d) None of these

09. Which of the following is correct in respect of SBI CapGains Plus deposit scheme?

a) Loans against deposit is available at the rate of 90% of deposit value plus accrued interest

b) The deposit can be offered as collateral security for availing loans from the Banks

c) Lien can be marked on this deposit for the purpose of granting loans

d) At the time of final closure of the account the depositor should bring specific authority letter/certificate from Income Tax Officer

10. Maximum number of nominees under SBI CapGains Scheme is ………

a) Only one

b) Maximum of three nominees

c) Nomination facility is not available

d) None of these 11. Which of the following is correct in respect of SBI CapGains Plus Scheme?

a) Premature payment of STDR/TDR in SBI CapGains Plus Scheme is not allowed

b) Opening of Savings Bank account is not mandatory in SBI CapGains Plus Scheme

c) Form A specified in the SBI CapGains Plus scheme relates to address proof and to be obtained in duplicate

d) Regular savings bank account already maintained by the depositor can be considered for SBI CapGains Plus scheme

12. Nomination facility is available in respect of SBI CapGains Scheme for accounts opened in the name of …………………

a) Minors

b) Hindu Undivided Family

c) Individuals and NRIs who are not minors

d) All the above


49

13. On the death of the depositor in SBI CapGains Plus scheme the proceeds are paid to…………..

a) All the nominees jointly

b) Only to the first nominee

c) Paid to the legal heirs on obtaining a letter from the Income Tax Officer

d) The proceeds cannot be paid before the expiry of the deposit term

KEY


1 c 6 b 11 c

2 d 7 a 12 c

3 a 8 c 13 b

4 c 9 d

5 b 10 b


50

SBI FLEXI DEPOSIT

01. SBI Flexi Deposit is a ……………..

a) Term Deposit Account

b) Special Term Deposit Account

c) Recurring Deposit (Variable Deposit) Account

d) None of these

02. The purpose of SBI Flexi Deposit is……………

a) To earn flexible rate of interest

b) To deposit flexible amount over a period of time

c) Long term deposit to earn attractive rate of interest with flexibility in choosing deposit amount

d) None of these

03. What is the minimum period of deposit in SBI Flexi Deposit Account?

a) 3 years

b) 1 year

c) 7 years

d) 5 years

04. What is the maximum period of deposit in SBI Flexi Deposit Account?

a) 10 years

b) 5 years

c) 12 years

d) 7 years

05. What is the minimum amount of deposit in SBI Flexi Deposit Account?

a) Rs.10000/-

b) Rs.5000/- in a financial year

c) Rs.1000/- in a financial year

d) None of these

06. What is the minimum amount that can be deposited in SBI Flexi Deposit Scheme at one instance?

a) Rs.1000/-

b) Rs.100/-

c) Rs.5000/-

d) Rs.500/-


51

07. How many times the money can be deposited in SBI Flexi Deposit Scheme in a month?

a) Only once from 1st to 10th of every month

b) Any time during the month and any number of times c) Amount of monthly deposit can vary, but number of deposits in a month is restricted to ten

d) None of these

08. What is the penalty for default in payment of minimum deposit in SBI Flexi Deposit Scheme?

a) Rs.100/- per financial year

b) NIL

c) Rs.50/- per financial year

d) None of these

09. What is the maximum amount of deposit in SBI Flexi Deposit Scheme?

a) Rs.100000/- in a financial year

b) Rs.50000/- in a financial year

c) Rs.120000/- in a financial year

d) None of these

10. Which of the following is incorrect in respect of SBI Flexi Deposit Scheme?

a) Interest for this deposit is as applicable to term deposits

b) 1% additional interest is paid for staff members and retired staff members

c) Deposit can be withdrawn on the last date of the month in which it matures

d) TDS is not applicable for SBI Flexi Deposit Scheme


a) Pre-mature closure is available, interest paid will be 1% below the interest rate applicable for the period the deposit remained with the Bank

b) Penalty is applicable for SBI staff and retired employees

c) Waiver of penalty can be granted by Net Work GM

d) None of these


52


a) Loan facility is available

b) Nomination facility is available

c) Transfer of account from one branch to other branch is allowed

d) A special stationery is used for printing SBI Flexi Deposit Receipts obtained from Regional Stationery Department

KEY


1 c 5 b 9 b

2 c 6 d 10 d

3 d 7 b 11 d

4 d 8 c 12 d


53

SBI TAX SAVINGS SCHEME

01. Which of the following is correct in respect of SBI Tax Savings Scheme?

a) It enables the depositor to place long term deposits to earn higher rate of interest

b) To avail tax benefits under section 80C of Income Tax Act

c) A depositor who is a resident and/or Karta of HUF can place deposits under this scheme

d) All the above statements are correct

02. Type of account opened under SBI Tax Savings Scheme is ………

a) Savings Bank Account

b) Recurring Deposit Account

c) TD/STD account

d) None of these

03. What is the minimum and maximum tenure of SBI Tax Savings Scheme?

a) Minimum 5 years and maximum 10 years

b) Minimum 3 years maximum 5 years

c) Minimum 1 years maximum 10 years

d) None of these

04. What is the minimum deposit in SBI Tax Savings Scheme?

a) Rs.10000/-

b) Rs.1000/-

c) Rs.25000/-

d) None of these

05. What is the maximum amount that can be deposited in SBI Tax Savings Scheme?

a) Rs.1,50,000/- per year

b) Rs.1,20,000/- per year

c) Rs.1,00,000/- per year

d) None of these

06. What is the lock in period for allowing pre-mature withdrawal in respect of SBI Tax Savings Scheme?

a) Two years

b) Three years

c) Five years

d) None of these KEY


1 d 3 a 5 a

2 c 4 b 6 c


54

NRI DEPOSITS

01. Which of the following is correct in respect of NRE account?

a) NRE account is meant for parking overseas savings remitted to India after converting in to INR

b) The amount mentioned in (a) above plus domestic savings

c) To park overseas savings in foreign currency also

d) None of these

02. NRO account is maintained for…………………

a) To park overseas savings remitted to India after converting in to INR

b) To park domestic savings

c) Both (a) and (b)

d) Only (b)

03. FCNR account opened to …………………..

a) To park overseas savings without converting in to INR

b) To park overseas savings with/without converting in to INR

c) Conversion of foreign currency in to INR is optional

d) None of these

04. What is the maximum amount of loan that can be granted against NRE and FCNB deposits?

a) Rs.1 crore

b) No maximum

c) Rs.2 crore

d) None of these 05. What is the minimum balance to be maintained in NRE/NRO account?

a) NIL

b) Rs.10000/-

c) Rs.1000/-

d) No minimum balance stipulation

06. What is the minimum balance to be maintained in FCNR account?

a) USD 1000 or equivalent

b) USD 500 or equivalent

c) USD 5000 or equivalent

d) None of these


55

07. What is the minimum and maximum tenure allowed for NRE fixed deposit account?

a) Minimum 6 months maximum 5 years

b) Minimum one year maximum 10 years

c) Minimum 1 year maximum 5 years

d) None of these 08. What is the minimum and maximum tenure stipulated for NRO fixed deposit account?

a) Minimum 7 days maximum 10 years

b) Minimum one year maximum 10 years

c) Minimum 6 months maximum 10 years

d) None of these 09. What is the minimum and maximum tenure stipulated for FCNR fixed deposit account?

a) Minimum one year maximum 10 years

b) Minimum one year maximum five years

c) Minimum one year maximum seven years

d) None of these 10. What is the benefit offered to senior citizens, staff members and retired staff members in respect of interest paid on NRE deposits?

a) One per cent above the card rates for staff members and retired staff members

b) 0.5% above the cards rates for senior citizens

c) There is no benefit by way of increase in rate of interest for senior citizens, staff members and retired staff members

d) Both (a) and (b) are correct

11. What is the rate of interest applicable when FCNR deposit is paid before maturity within one year?

a) If it is paid before maturity within one year no interest is paid

b) 1% less than the contracted interest rate is paid

c) 1% less than the interest applicable for the period for which the deposit is run is paid

d) Savings Bank interest is paid

KEY


1 a 5 c 9 b

2 c 6 a 10 c

3 a 7 b 11 a

4 b 8 a


56

DEPOSITS – MISCELLANEOUS

01. What is the additional interest provided on term deposits provided to Senior

Citizen?

a) 0.50% above the card rates

b) 0.25% above the card rates

c) 1% above the card rate

d) None of these

02. For a single deposit up to Rs.5 lacs there shall be no penalty for premature withdrawal, provided the deposit remained with the Bank for at least ………..

a) Six months, 7 days

b) One year

c) Penalty is applicable for all pre-mature payments

d) None of these

03. Who is the appropriate authority to waive or reduce the penalty levied on pre-mature payment?

a) GM of Net Work

b) Controller of the Region

c) No discretionary power is given for reducing/waiver of penalty levied on premature payment

d) None of these

04. What is the interest rate applicable for loan against term deposits?

a) 0.75% above the deposit rate

b) 0.50% above the deposit rate

c) 1% above the deposit rate

d) None of these 05. Which of the following customers are called “Vishesh” customers?

a) Deposit of Rs.5 lacs or more

b) Home loan of Rs.10 lacs and above (or) Car Loan of Rs.5 lacs and above with deposit of

Rs.2 lacs

c) Either (a) or (b)

d) None of these


57

06. Which of the following customers are called HNI customers?

a) Customers with deposits of Rs.20 lacs and above

b) Customers with deposits of Rs.10 lacs and above

c) Customers with deposits of Rs.50 lacs and above

d) None of these

07. What is the mode of operation in SBI Tiny RD account which is mandatory?

a) Mode of operation should be – single

b) Mode of operation should be – E or S

c) Mode of operation should be – jointly operated account

d) None of these

08. What is the minimum amount of deposit in SBI Tiny RD account?

a) Rs.20/-

b) Rs.50/-

c) Rs.10/-

d) None of these

09. What is the minimum and maximum period stipulated for SBI Tiny RD account?

a) Fixed period of 48 months only

b) Fixed period of 60 months only

c) Fixed period of 36 months only

d) None of these

KEY


1 b 4 b 7 a

2 b 5 c 8 c

3 c 6 a 9 c


58

SME TECH AND TRANSACTION PRODUCTS

1. Under Mobile Banking Services, transaction rights to SME customers (Proprietary concerns, Partnership Firms, Public or Private Limited Companies) are available in…………….. a .Current accounts b. Cash Credit accounts c. Both (A) & (B) d. No transaction rights 2. Under State Bank Premium (Business Debit Card), purchase protection against burglary/theft of any non-perishable goods within 90 days of their purchase is available to the extent of……………….…… a. Rs.5,000/- b. Rs.10,000/- c. Rs.25,000/- d. Rs.50,000/- 3. Dealers of Industry Majors may send remittances using MBS to the account of the Industry Majors up to a daily transaction limit of………………... a. Rs 2.50 Lacs b. Rs 5.00 Lacs c. Rs 10.00 Lacs d. Rs 15.00 Lacs 4. Now, the bank has provided a facility to Dealers of Industry Majors to send remittances using MBS through Immediate Payment Service (IMPS), P2M option available in Mobile Banking Service. P2M stands for:

a. Person to Merchant

b. Price to Market

c. Product to Market

d. Product to Merchant

5. Under Dealers‟ remittance to Industry Majors (IM) facility using MBS, a flat fee of … will be charged for the facility from either the remitter (if maintaining an

account with us) or from the IM (beneficiary), as decided by the IM. a. Rs 5/- per transaction b. Rs 10/- per transaction c .Rs 20/- per transaction d. Rs 25/- per transaction

KEY

Q NO ANS Q NO ANS

1 c 4 a

2 d 5 b

3 d


59

SME - LIABILITY PRODUCTS

POWER POS

1. Power POS - Current Account may be opened with zero balance, however the QAB for this account is……………… A. Rs.1000/- B. Rs.2000/- C. Rs.3000/- D. Rs.5000/- 2. Penalty for Non maintenance of QAB in “Power POS-Current Account” is…… A. Rs. 100/- per quarter B. Rs. 250/- per quarter C. Rs. 500/- per quarter D. Rs. 750/- per quarter 3. Penalty for closure of “Power POS-Current Account” within 12 months is……… A. Rs.100/- B. Rs.250/- C. Rs.750/- D. Rs.1000/- 4. The charge for first 100 multi city cheques to Power POS account holder is nil. Thereafter, issue charge is……......of normal card rates. A. 25% B. 50% C. 75% D. 100% 5. For “Power POS” Current Account holder, encashment of self cheques at Non- Home Branch is restricted up to…………………. A. Rs.0.25 Lacs per cheque B. Rs.0.50 Lacs per cheque C. Rs.1.00 Lacs per cheque D. Rs.2.00 Lacs per cheque 6. Cash Deposit in “Power POS Current Account” at non-home Branch isrestricted upto……… {Branch Manager is vested with the discretion to accept higher amt}. A. Rs.1.00 Lacs per day B. Rs.2.00 Lacs per day C. Rs.2.50 Lacs per day D. Rs. 5.00 Lacs per day

KEY


1 d 3 d 5 c

2 c 4 b 6 b


60

SME- Sahaj Current Account

01. Which of the following is not true about SME Sahaj Current account? a. Individuals, proprietary firms and partnership firms engaged in business activity b. Introduction by an A/c holder is not required c. To be used aggressively for tapping low cost deposits from all traders and service providers. d. Free Internet Banking facility available 02. How many cheque leaves can be issued to SME Sahaj customers per annum? (a) 50 (b) 25 (c) 100 (d) No cheque leaves 03. What is the charge per cheque leaf for SME Sahaj customers? (a) Rs 3/- (b) Rs 5/- (c) Rs 1/- (d) No charge 04. How many additional leaves can be given to SME Sahaj customers? (a) 10 (b) 25 (c) 50 (d) No such condition 05. What is the charge per additional cheque leaf for SME Sahaj customers? (a) Rs 5/- (b) Rs 10/- (c) Rs 20/- (d) Rs.25/- 06. What is the maximum amount than can be drawn from cheque by SME Sahaj customers? (a) Rs 10000/- (b) Rs 15000/- (c) Rs 5000/- (d) Rs 50,000/- 07. What is the maximum limit for withdrawal by ATM cum Debit card? (a) Rs 10000/- (b) Rs 15000/- (c) Rs 5000/- (d) Rs 50,000/-


61

08. The Penalty for non-maintenance of minimum balance in SME-Sahaj Current account is (a) Rs 300/- (b) Rs 100/- (c) Rs 200/- (d) Rs.250/- 09. Which one of the following facilities not available for SME Sahaj Current Account (a) Free SI for payment of loan at branch (b) Immediate credit of outstation cheques up to Rs 15000 per cheque (c) Collection of cheque & Inward Bill business at concessional charges (d) SI charges for payment to other a/c at Rs 50 per transaction 10. Minimum deposit amount stipulated for SME-Sahaj Current account Is (a) Rs.1000/-

(b) Rs.2500/-

(c) Rs.5000/-

(d) Rs.10000/-

ANSWERS

Q NO ANS Q NO ANS

1 b 6 b

2 b 7 b

3 b 8 a

4 d 9 c

5 b 10 a


62

SURABHI DEPOSIT SCHEME

01. Minimum Amount of Deposit to be maintained for Current A/C under SURABHI Deposit is a) Rs 25000/- b) Rs 20000/- c) Rs 1000/- d) Rs 10000/- 02. Minimum Amount of Deposit to be maintained for SB A/C under SURABHI Deposit is a) Rs 25000/- b) Rs 20000/- c) Rs 1000/- d) Rs 10000/- 03. Periodicity for Auto Sweep Facility under SBI Surabhi is a) Daily b) Weekly c) Monthly d) Either b or c 04. Period of CLTD under SBI Surabhi is a) 1 year to 10 years b) 1 year to 5 years c) 1 year to 3 years d) 1 year to 8 years 05. Minimum Threshold Limit for Auto Sweep under SBI Surabhi is a) Rs 5000/- b) Rs 10000/- c) Rs 25000/- d) Rs 50000/- 06. Principle for breaking CLTD under SBI Surabhi is a) LIFO only b) FIFO only c) Either a or b as per customer„s choice exercised initially d) In absence of customer„s choice, FIFO

ANSWERS Q NO ANS Q NO ANS

1 d 4 c

2 c 5 d

3 b 6 a


63

POWER JYOTHI

01. How many types of fee can be collected through a single challan under Power Jyoti Scheme? a) 5 b) 8 c) 10 d) 15 02. Challan used for collecting fee under Power Jyoti Scheme is in how many Parts? a) Two b) Three c) Four d) Five 03.Power Jyothi is a current account product offered by the bank to provide fee collection facility for the institutions through our CBS platform. Quarterly Average balance to be maintained is a) Rs.10000 b) Rs.20000 c) Rs.25000 d) Rs.50000 04. Penalty for non-maintenance of QAB in Power Jyothi account is Rs.---per quarter. a) Rs.1000/- b) Rs.2000/- c) Rs.2500/- d) Rs.3000/- 05. Which of the following is not true about Power Jyothi account a) Institution is charged for fee collection b) A Commission of Rs.50/- to be charged from each remitter c) Penalty for closing the account within 12 months is Rs.500/- d) Cheque book is not issued 06. What is the transaction charges levied by the bank for Power Jyothi & Power Jyothi PUL? a) Rs.10/- b) Rs.20/- c) Rs.40/- d) Rs.60/- 07. In our liability product Power Jyothi PUL: PUL- stands for ___. a) Pre Up Load b) Post Up Load c) Pre Underwriting for Loan d) Post Underwriting for Loan

ANSWERS


1 c 4 c 7 a

2 b 5 a

3 d 6 d


64

“SME POWER” CURRENT ACCOUNT

01. Which one of the following is not true regarding SME Power deposit schemes? a) QAB ranging from Rs 20,000/- to Rs 5 Lacs b) Penalty for non-maintenance of QAB from Rs 10000/- to Rs 3000/- per Qtr c) Cheque Return Protection Facility available in all variants d) Monthly ceiling specified even for cash deposit at home branch 02. Which of the following is not a power series current account? a) Power pack b) Power Gain c) Power Jyothi d) Power Pack 03. QAB for Power Pack current account is a) Rs.5,00,000/- b) Rs.3,00,000/- c) Rs.2,00,000/- d) Rs.1,00,000/- 04. Penalty for closing Power Base current account within 12 months is a) Rs.1000/- b) Rs.900/- c) Rs.800/- d) Rs.750/- 05. Penalty for non-maintenance QAB in Power Gain current account is a) Rs.5000/- per quarter b) Rs.6000/- per quarter c) Rs.7000/- per quarter d) Rs.8000/- per quarter 06. How Many power series of current accounts are presently available? a) 3 b) 8 c) 5 d) 4 07. Qab for power Gain account is a) Rs.5,00,000/- b) Rs.3,00,000/- c) Rs.2,00,000/- d) Rs.1,00,000/-

KEY


01 c 03 a 05 b 07 d

02 c 04 d 06 a


65

ADVANCES GENERAL

1 As per prudential norms stipulated by RBI , the Credit exposure comprises of which of the following elements:

i) all types of funded limits

ii) non-funded credit limits.

iii) facilities extended by way of equipment leasing, hire purchase finance

iv) facilities extended by way of factoring services

A i & ii only B i only C i,ii &iii D i,ii,iii &iv

2 As per RBI prudential credit exposure norms, in case of Single Borrower, the Maximum exposure is ____% of Capital funds and ___% for infrastructure lending.

A. 15% & 20 % B. 10% & 15% C. 5% & 25% D. 40% & 50%

3 In case of Group Borrower, the Maximum exposure is ____% of Capital funds and ___% for infrastructure lending.

A. 15% & 20 % B. 10% & 15% C. 5% & 25% D. 40% & 50%

4 ____________ includes Tier I & Tier II Capital

A.Block Funds B. Reserves & Surplus C. Hedge Funds

D. Capital Funds

5 The Maximum aggregate credit facilities ( FB and NFB ) in case of Individual Borrower is ______ (excluding loan against specified securities)

A.Rs.10.00 Cr. B. Rs.25 Cr. C. Rs.75.00 Cr. D. Rs.1.00 Cr.

6 The Maximum aggregate credit facilities in case of Non Corporates is ___ (FB and NFB) excluding loan against specified securities

A.Rs.500 Cr. B. Rs.50.00 Cr. C. Rs.100.00 Cr. D. Rs.125.00 Cr.

7 In case of Corporates, single borrower exposures is at ___ % of Bank‟s capital funds for and for group exposures, it is at _____%

A.5% & 15% B. 15% & 20% C. 20% & 50% D. 15% & 40%

8 Normally, the maturity of Term Loan should not exceed ___ years, including moratorium period (except for specific schemes)

A.8 B. 9 C. 7 D. 10


66

9 Minimum Current Ratio desired for manufacturing company is ____

A.1.00 B. 1.20 C. 1.33 D. 1.50

10 Minimum Current Ratio desired for other than manufacturing company is ____ for FBWC limits above Rs. 5cr

A.1.00 B. 1.20 C. 1.33 D. 1.50

11 Minimum Current Ratio desired for other than manufacturing company is ____ for FBWC limits upto Rs. 5cr

A.1.00 B. 1.20 C. 1.33 D. 1.50

12 Maximum TOL/TNW desired for manufacturing company is ______

A.2.00 B. 5.00 C. 3.00 D. 4.00

13 Maximum TOL/TNW desired for other than manufacturing company is ______

A.2.00 B. 5.00 C. 3.00 D. 4.00

14 Maximum Debt/Equity desired for manufacturing company & others is ______

A. 1: 2 B. 2 :1 C. 1 : 1.5 D. 1.5 : 1

15 Minimum Net DSCR desired for manufacturing company & others is

A.2.00 B. 5.00 C. 3.00 D. 4.00

16 Minimum Gross Net DSCR desired for manufacturing company & others is

A.1.75: 1 B. 1 : 1.75 C. 1 : 1.50 D. 2: 1

17 CRA Hurdle Rate is

A.SB 4 B. SB 7 C. SB 9 D. SB 10

18 How many CRA (simplified) models are available

A.1 B. 2 C. 3 D. 4

19 _____________Committee recommended Factoring in India

A.Rangarajan Committee B. Goiporia Committee

C. Ghosh Committee D. Kalyanasundaram Committee


67

20 Sec 59 -61 of Indian Contract Act denotes

A. Hypothecation B. Mortgage

C. Pledge D. Clayton‟s Rule

21 In case of Manufacturing Sector, the investment in plant & machinery for Micro Enterprises does not exceed

A. Rs.25.00 lacs B.Rs.30.00 lacs C. Rs.15.00 lacs D. Rs.10.00 lacs

22 In case of Manufacturing Sector, the investment in plant & machinery for Small Enterprises is

A. > Rs.25.00 lac < Rs.50.00 lacs B. > Rs.25.00 lac < Rs.1.00 Crores

C. > Rs.50.00 lac < Rs.2.00 Crores D. > Rs.25.00 lac < Rs.5.00 Crores

23 In case of Manufacturing Sector, the investment in plant & machinery for Medium Enterprises is

A.> Rs.2.00 Crores < Rs.5.00 Crores B. > Rs.2.00 Crores < Rs.10.00 Crores

C.> Rs.5.00 Crores < Rs.25.00 Crores D.> Rs.5.00 Crores < Rs.10.00 Crores

24 In case of Service Sector, the investment in plant & machinery for Micro Enterprises does not exceed

A. Rs.10.00 lac B.Rs.30.00 lacs C. Rs.15.00 lacs D. Rs.25.00 lacs

25 In case of Service Sector, the investment in plant & machinery for Small Enterprises is

A. > Rs.10.00 lac < Rs.50.00 lacs B. > Rs.10.00 lac < Rs.2.00 Crores

C. > Rs.10.00 lac < Rs.1.00 Crore D. > Rs.25.00 lac < Rs.50.00 lacs

26 In case of Service Sector, the investment in plant & machinery for Medium Enterprises is

A.> Rs.2.00 Crores < Rs.10.00 Crores B.> Rs.2.00 Crores < Rs.25.00 Crores

C.> Rs.5.00 Crores < Rs.50.00 Crores D.> Rs.2.00 Crores lac < Rs.5.00 Crores

27 Approved rate of TPM for NPAs beyond 1 year in CAG, MCG & NBG A.5% B.10% C.15% D.20%

28 “No Due Certificate” from individual borrowers (including SHGs & JLGs) in rural and semi-urban areas for all types of loans including loans under Government Sponsored Schemes (GSS) is required as per RBI directive.

A. True B. False


68

29 Timeline for Loan Application Disposal for Loans upto Rs.25,000/- in case of priority sector is

A. 1 week B. Fortnight C. 1 month D. 2 months

30 Timeline for Loan Application Disposal for Loans above Rs.25,000/- in case of priority sector is

A. 1 week B. Fortnight C. 1 month D. 8 – 9 weeks

31 Timeline for Loan Application Disposal for Loans upto Rs.25,000/- in case of Micro & Small Enterprise is

A. 1 week B. 2 weeks C. 3 weeks D. 4 weeks

32 Timeline for Loan Application Disposal for Loans above Rs.25,000/- and upto Rs.5 lac in case of Micro & Small Enterprise is

A. 1 week B. 2 weeks C. 3 weeks D. 4 weeks

33 The hurdle score for new units under risk category is

A. 47 B. 49 C. 45 D. 50

34 The hurdle score for existing units under risk category is

A. 47 B. 49 C. 45 D. 50

35 The maximum amount eligible for takeover under Agri Segment without seeking administrative approval would be ______

A. Rs. 10.00 lakhs B. Rs. 50.00 lakhs C. Rs. 20.00 lakhs D. Rs. 2.00 lakhs

36 The minimum amount eligible for takeover under Agri Segment in case of ACC is ______

A. Rs. 5.00 lakhs B. Rs. 4.00 lakhs C. Rs. 1.00 lakh D. Rs. 3.00 lakhs

37 The minimum amount eligible for takeover under Agri Segment in case of ATL (for allied activities) is ______


38 The minimum amount eligible for takeover under Agri Segment in case of ATL (other than allied activities) is ______



69

39 Credit Audit is conducted for accounts withexposure of _______

A. Rs. 10.00 Crores & above B. Rs. 5.00 Crores & above C. Rs. 50.00 Crores & above D. Rs. 25 Crores & above

40 Stock and Receivables Audit shall be conducted at __________intervals for all exposures above Rs. 1 crore and upto Rs. 25 crores.

A. Monthly B. Quarterly C. Half-Yearly D. Yearly

41 Stock and Receivables Audit shall be conducted at __________intervals for all exposures above Rs. 25 crores.

A. Monthly B. Quarterly C. Half-Yearly D. Yearly

42 Reserve Bank of India told banks to do legal audit and re-verification of title deeds of loans above ___________ to check fraud.

A. Rs 1 crore B. Rs 2 crores C. Rs 4 crores D. Rs 5 crores

43 In case of “One Person Company” (OPC), it is _______ to conduct AGM

A. not compulsory B. compulsory

44 Conversion of existing private Companies with paid-up capital up to ______ into OPC is permitted

A.Rs.10 Lacs and turnover up to Rs 50 lacs

B. Rs.50 Lacs and turnover up to Rs 2 Crores

C.Rs.20 Lacs and turnover up to Rs 20 Crores

D.Rs.25 Lacs and turnover up to Rs 5 Crores

45 Every Listed Company /Public Company with paid up capital of _____ Crores or more / Public Company with turnover of ________Crores or more shall have at least one Woman Director.

A. Rs.100 & Rs.300 crore B. Rs 10 & Rs.30 crores

C. Rs.200 & Rs.500 crores D. Rs 25 & Rs. 50 crores

46 Scrutiny of Gift Deed and POA by Bank‟s Law officer will be waived in respect of loans up to Rs. 1.00 crore.

A. Rs 10 lakhs B. Rs 50 lakhs C. Rs 1 crore D. Rs 5 crores


70

47 As per RBI definition, one of the reasons for declaring a borrower as “Non-cooperative borrower” is “One who does not provide necessary information required by a lender to assess its financial health even after ____ reminders

A. 2 B. 3 C. 1 D. 4

48 In respect of prospective new connections where our estimated exposure is Rs. 5 crore or above (aggregate of fund based and non-fun based exposures), the Bank has entered into an agreement with a service provider __________ for pre-screening services.

A. M/s Cubictree Technology Solutions Pvt. Ltd.

B. M/s Reliance Advisory Services

C. M/s Wipro Infotech Professional Services

D. M/s Mindtree Technology Solutions Pvt. Ltd.

49 Validity of External Credit Rating is _____ months from the date of rating

A.12 B. 15 C. 18 D.24

50 Which of the following is not an external credit rating agency?

A.CRISIL B. SMERA C. CARE D.CIBIL

51 Very Small means represents customers having Net Means of ________

A.Upto Rs.1 lac B. Upto Rs.2 lac C. Upto Rs.3 lac D. Upto Rs.4 lac

52 Small means represents customers having Net Means of ________

A. Above Rs.1.00 lacs to Rs.5.00 lacs B. Above Rs.1.00 lacs to Rs.4.00 lacs

C. Above Rs.2.00 lacs to Rs.4.00 lacs D. Above Rs.2.00 lacs to Rs.5.00 lacs

53 Moderate means represents customers having Net Means of ________



54 Fair means represents customers having Net Means of ________




71

55 Good means represents customers having Net Means of ________

A. Above Rs.25.00 lacs to Rs.1.00 Crore B. Above Rs.10.00 lacs to Rs.1.00 Crore

C. Above Rs.4.00 lacs to Rs.10.00 Crores D. Above Rs.2.00 lacs to Rs.4.00 Crores

56 Very Good means represents customers having Net Means of ________

A. Above Rs.1.00 crores to Rs.5.00 crores B. Above Rs.1.00 crore to Rs.10.00 crs

C. Above Rs.2.00 crores to Rs.10.00 crores D. Above Rs.2.00 crores to Rs.5.00 crs

57 Large means represents customers having Net Means of ________

A. Above Rs.10.00 crores to Rs.50.00 crores

B. Above Rs.10.00 crore to Rs.25.00 crores

C. Above Rs.5.00 crores to Rs.10.00 crores

D. Above Rs.5.00 crores to Rs.50.00 crores

58 Very Large means represents customers having Net Means of ________

A. Above Rs.5.00 crores B. Above Rs.20.00 crores C. Above Rs.25.00 crores

D. Above Rs.50.00 crores

59 To be eligible under CDR (Corporate Debt Restructuring), the fund based and non fund based exposure should be

A. Rs.10.00 Crores & above B. Rs.5.00 Crores & above

C.Rs.1.00 Crore & above D. Rs.50.00 Crores & above

60 In case of “Teaser Rates” the rate of interest is ____ in the first few years after which rates are reset at _____ rates.

A. High, Low B. Low, High C. High, Medium D. Medium, High

61 In States where noting of lien on agricultural property with revenue

authorities is available but not mandatory, noting of lien ____

A. must be ensured without exception even though not mandatory

B. need not be done

C. may or may not be done on case to case basis

D. must not be done


72

62 Hunting Limits offered to corporate are valid for ______________

A. 1 month B. 2 months C. 3 months D. 6 months

63 The Cut-off Limit for Migration of Accounts from NBG to SAMG is

A. Rs.10 lacs B. 20 lacs C. 25 lacs D. 50 lacs

64 Time Limit for Migration of NPAs to SAMG is

A. 30 days B. 60 days C. 180 days D. 90 days

65 For “A“ rated companies, the maximum rate of concessions in service charges not to exceed

A. 10% B.20% C.25% D.50%

66 Asset Classification is done

A. Borrowerwise B. Accountwise C. Facilitywise

67 The provision requirement in case of doubtful assets (one to three years) is

A. 10% B.20% C.40% D.50%

68 In case of substandard assets a general provision of ___ has to be applied

A. 10% B.15% C.25% D.50%

69 Standard assets under advances to Commerial Real Estate (CRE)- Residential Housing Sector will attract a provision of

A.1% B.0.75% C.0.50% D.0.25%

70 Standard assets under advances to medium enterprises attract ___ provisioning

A.0.40% B.0.75% C.0.50% D.0.25%

71 The provision requirement for advances sanctioned under CGTMSE for the guaranteed amount is

A.0.25% B.0.50% C. Nil D.10%


73

72 A non performing financial asset should be held by the purchasing bank in its books at least for a period of ___ months before it is sold to other banks.

A. 1 B.2 C.6 D.12

73 Banks may restructure the accounts classified under

i. standard

ii.substandard

iii.doubtful

A. i only B.ii only C. iii only D. All the above

74 Banks can reschedule / restructure / renegotiate borrowal accounts with retrospective effect.

A. True B. False

75 An account wherein the Principal or interest payment is not overdue for more than 30 days but account showing signs of incipient stress is denoted as

A. SMA 1 B. SMA 2 C. SMA 0 D.SMA 3

ANSWERS :

1 D 21 A 41 C 61 A

2 A 22 D 42 D 62 D

3 D 23 D 43 A 63 A

4 D 24 A 44 B 64 C

5 B 25 B 45 A 65 D

6 C 26 D 46 C 66 A

7 D 27 C 47 A 67 C

8 A 28 B 48 A 68 B

9 C 29 B 49 B 69 B

10 B 30 D 50 D 70 A

11 A 31 B 51 A 71 C

12 C 32 D 52 B 72 D

13 B 33 B 53 C 73 D

14 B 34 A 54 B 74 B

15 A 35 B 55 A 75 C

16 A 36 C 56 B

17 D 37 A 57 B

18 C 38 D 58 C

19 D 39 A 59 A

20 D 40 D 60 B


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AGRI ADVANCES

1. White Blocks refers to areas wherein exploitation of ground water is less than ___ of the available water. A. 50% B. 60% C. 70% D. 85% 2. Grey Blocks refers to area wherein _________ of the available water has already been exploited. A. 50-70% B. 60-80% C. 70-90% D. 65- 85% 3. Dark Blocks refers to area wherein more than _____ of the available water is already over-exploited. A. 90% B. 80% C. 70% D. 65% 4. As per Spacing norms for wells the distance between a dug well and a bore well is ___ meters A.180 metres B. 200 metres C.215 metres D.250 metres 5. The service charges payable to tractor dealers are paid by debit to ______ A. Interest A/c B. Commission A/c C. Charges A/c D. Term Loan A/c 6. Service Area Approach had been recommended by the _________ A. Ojha committee B. Rangarajan Committee C. Tarapore Committee D. Narasimham Committee 7. LBR U1/U2/U3 are submitted by branches located in __________ areas. A. Metro B. Urban C. Semi-Urban D. Rural 8. Which committee which recommended Self Help Groups A. Ojha committee B. Kalia Committee C. Tarapore Committee D. Narasimham Committee 9. The concept of weaker sections was evolved by A. Ghosh committee B. Kalia Committee C. Tarapore Committee D. Narasimham Committee


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10. A bank will be eligible for unrestricted refinance by NABARD only if the gross NPA to total loans and advances as at previous 31.3 has not exceeded ___. A.5% B.10% C.15% D.20% 11. A Small farmer is a person having Land holding up to A. 2.5 acre of wet land or 5 acres of dry land. B. 1 acre C. 2 acres of wet land or 5 acres of dry land D. 1 acre of wet land or 2.5 acres of dry land 12. A marginal farmer is a person having Land holding up to A. 2.5 acre of wet land or 5 acres of dry land. B. 1 acre C. 2 acres of wet land or 5 acres of dry land D. 1.25 acre of wet land or 2.5 acres of dry land 13. Simplified and uniform documents under Agri Segment are obtained now as per recommendations of A. RV Gupta Committee B. Kalia Committee C. Tarapore Committee D. Narasimham Committee 14. The inspection periodicity for crop loans is A. Once at the time of sanction B. Twice for each crop C. Half yearly D. Yearly 15. No dues certificate has been waived by RBI for small loans up to ______ to small and marginal farmers, only a self declaration to be obtained from the borrower. A. Rs.10,000.00 B. Rs.50,000.00 C.Rs.1,00,000.00 D.Rs.2,00,000.00 16. Atleast ___ Post-dated cheques should be obtained for Agricultural Term Loans and Government Sponsored Schemes loan sanctioned beyond Rs. 2.00 lacs under Agricultural Term Loans. A. 5 B. 10 C.15 D.20 17. Moriculture refers to ________ A. Mulberry cultivation B. Fish farming C. Bee Keeping D. Plant Propagation 18. Yellow revolution refers to ________ A. Textile B. Oil Seeds C. Cocoa D. Milk


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19. Under KCC which of the following category of borrowers are eligible i. All farmers-individuals/Joint borrowers who are owner cultivators ii. Tenant farmers, Oral lessees and Share Croppers etc iii. SHGs or Joint Liability Groups of farmers including tenant farmers, share croppers etc. A. i only B. ii only C. iii only D. All the above 20. The margin for crop loan is _____ A. 10% B. 15% C. 20% D. No separate margin need be insisted for crop loan as the margin is built while fixing SOF 21. The repayment due date for mono crop Kharif season is A. One year from the date of sanction B. One year from the date of disbursement C. 31st January or date fixed by SLBC/DLTC D. 31st July or date fixed by SLBC/DLTC 22. The repayment due date for mono crop Rabi season is A. One year from the date of sanction B. One year from the date of disbursement C. 31st January or date fixed by SLBC/DLTC D. 31st July or date fixed by SLBC/DLTC 23. The repayment due date for double/multi crops is A. One year from the date of sanction B. One year from the date of disbursement C. 31st January or date fixed by SLBC/DLTC D. 31st July or date fixed by SLBC/DLTC 24. RBI has also reduced the risk weightage on loans up to Rs. one lac against gold and silver ornaments from 125% to ___ A. 100% B. 75% C. 50% D. 25% 25. The margin for Produce Marketing Loan is A.15% B.20% C. 25% D.40% 26. Under the Produce Marketing Loan Scheme, ___ collateral is required for loans up to the maximum permitted limit of Rs.10 lacs under the scheme. A. 100% B.50% C.25% D. No Collateral 27. Under the Produce Marketing Loan Scheme, the loan has to be repaid in __ months. A. 60 B.12 C. 9 D. 15


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28. The minimum limit that can be sanctioned under SHG Credit Card is A. Rs.25,000/- B.Rs.50,000/- C. Rs.75,000/- D. 1,00,000/- 29. The minimum limit that can be sanctioned under SHG Credit Card is A. Rs.50,000/- B.Rs.1,00,000/- C. Rs.2,00,000/- D.3,00,000/- 30. Under MODIFIED NEW TRACTOR LOAN SCHEME (Modified NTLS), the borrower should possess a minimum land holding of __ acres. A. 4 acres B.2 acres C. 6 acres D. 8 acres 31. Under NEW TRACTOR LOAN PRODUCT TATKAL (MORTGAGE FREE) TRACTOR LOAN (TTL), the quantum of loan is _________ (not to include accessories cost). A. 60% B. 75% C.90% D.100% 32. The TDR made under NEW TRACTOR LOAN PRODUCT TATKAL (MORTGAGE FREE) TRACTOR LOAN (TTL) shall earn ____% interest. A. Card Rate B. Rate applicable for 60 months C. SBAR + 2% D.0% 33. In case of Stree Shakti Tractor Loan (SSTL) the EMI/ NMI ratio shall not exceed A. 50% B. 60% C.70% D.75% 34. In case of Stree Shakti Tractor Loan (SSTL), the co-borrower will be A. men only B. women only C. any one 35. Under SSTL the maximum repayment for loans without Collateral security is A. 24 months B. 36 months C. 48 months D. 60 months 36. Under SSTL the maximum repayment for loans with Collateral security is A. 24 months B. 36 months C. 48 months D. 60 months 37. The margin under the scheme for Financing of second hand / used tractors schemes - SBI - Mahindra Vishwas & SBI TAFE Nayaroop is A. 10% B. 15% C.NIL D. 25% 38. The maximum repayment period in case of financing of power tillers is A. 5 years B. 7 years C. 9 years D. 3 years


78

39. The maximum term loan under Dairy Plus Scheme is ___ A. Rs.1 lac B. Rs.2 lacs C. Rs.3 lacs D. Rs.5 lacs 40. Financing for Dairy Societies is classified under A. Direct Agriculture Finance B. Indirect Agriculture Finance 41.The minimum flock size in case of Broiler Plus is ______ birds A. 5000 B.2000 C.1000 D.10000 42. The sanctioning authority under Scheme for financing Micro Finance Institutions (MFIs) / Non Government Organisations (NGOs) is A. Branch Manager B. Chief Manager C. Not below the rank of AGM 43. Financing under Scheme for Debt Swapping of Borrowers is classified under A. Direct Agriculture Finance B. Indirect Agriculture Finance 44. The quantum of loan under Scheme for Debt Swapping of Borrowers in case the debt is on account of cultivation or agri activity or Rs.1,00,000/- whichever is lower is A. 80% B.100% C. 75% D. 60% 45. Under Land purchase scheme, loan may be considered for i.Cost of land ii. Provision of irrigation facilities iii. land development (shall not exceed 50% of the cost of land) iv. Purchase of farm equipments. Registration charges & stamp duty. A. All the above B. i only C. i, ii & iii 46. Margin in case of financing for Cold Storage is ____ of Project cost. A.10% B.15% C.20% D.25% 47. ________ facility is sanctioned under Scheme for financing private cold storage /private ware houses for onlending to farmers A. Demand Loan B. Term Loan C. Overdraft D. Clean Cash Credit 48. Minimum loan amount under scheme for financing seed processors is A. Rs.2 lacs B. Rs.3 lacs C. Rs.5 lacs D. Rs.10 lacs 49. The minimum and maximum quantum of loan in case of Mortgage Loan to Seed Processing Units is A.Rs.5 lacs & Rs.1 Cr. B. Rs.1 lac & Rs. 5 lacs C. Rs.2 lacs & Rs.10 lacs D. Rs. 5 lacs & Rs.50 lacs


79

50. The gestation period in case of financing of organic farming is A. 6 months B. 1year C. 2 years D. 3 years 51. Under Bio Gas Plants (FAMILY TYPE) Scheme, margin is waived upto A. Rs.25000/- B. Rs.50000/- C.Rs.75000/- D.Rs.100000/- 52. In case of “Producer Companies” maximum no. of members can be A. 20 B.No cap in membership C.50 D.100 53. The capital subsidy available under DED Scheme is A. Front ended B. Open ended C. Back ended D. Close ended 54. Utilization certificate should be submitted by the financing banks to concerned NABARD Regional Office within ___ days of the receipt of subsidy. A. 15 B. 10 C. 7 D.3 55. In case of „Special SBI OTS for Tractor & Farm Mechanization Loans 2015-16‟, valuation of tractor is to be arrived at by applying depreciation at ___ per annum. A. 5% B.10% C.15% D.20% 56. Our Bank has entered into tie up with M/s Shriram Automall India Ltd. (SAMIL) for auction of seized tractors through organised malls A. True B. False 57. “Out of Order” refers to outstanding balance remaining continuously in excess of the sanctioned limit/drawing power for __ days. A. 30 B.45 C.60 D.90 58. Any amount due to the bank under any credit facility is „overdue‟ if it is not paid on the due date fixed by the bank. A. True B.False


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59. IRAC norms for non performing assets apply to advances sanctioned under Govt.Sponsored Schemes A. True B.False 60. Substandard assets are those which have remained NPA for a period less than or equal to ___ months. A. 24 B.36 C.12 D.6 ANSWERS:

1 C 11 A 21 C 31 D 41 A 51 D

2 C 12 D 22 D 32 D 42 C 52 B

3 A 13 A 23 D 33 B 43 A 53 C

4 C 14 B 24 C 34 B 44 B 54 A

5 A 15 B 25 D 35 B 45 A 55 C

6 A 16 C 26 D 36 C 46 D 56 A

7 B 17 A 27 B 37 B 47 D 57 D

8 B 18 B 28 B 38 C 48 A 58 A

9 A 19 D 29 C 39 D 49 A 59 A

10 C 20 D 30 B 40 B 50 D 60 C


81

MULTIPLE CHOICE QUESTIONS: HOUSING LOANS:

1. Housing Loans are sanctioned for anyone of the following purpose

a. Purchase a plot of land for purpose of construction of house b. Purchase /construct a new house/flat c. Purchase an existing house/flat or extend an existing house d. Repair or renovate an existing house/flat e. furnishing/consumer durables as part of the project cost f. all the above 2. On Housing Loans, the reimbursement of investment made on Housing Project from own resources can be considered for the period preceding … a. six months b. twelve months c. Eighteen months d. twenty four months 3. The minimum age requirement for sanctioning Housing Loan is a. 21 years b.25 years c.18 years d. 20 years 4. For Housing Loans, the repayment has to be completed, irrespective of the tenor, before the customer reaches the age of ….. a.58 years b. 60 years c. 65 years d. 70 years 5. The condition for considering Platinum Age Limit, for sanctioning Housing Loans is a. Estimated rental value to be form part of 50% of EMI b. Estimated rental value to be form part of 60 % of EMI c. Estimated rental value to be form part of 75 % of EMI d. Estimated rental value to be form part of 80 % of EMI 6. What is the eligible EMI/NMI ratio for Home loans for the customers coming from income group of NAI from Rs.120,000 and up to Rs.300,000/ a. 20 % b. 25 % c.30 % d. 40 %


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7. What is the eligible EMI/NMI ratio for Home loans for the customers coming from income group of NAI from Rs.300,000/-and up to Rs.500,000/ a. 30 % b. 40 % c.45 % d. 50 % 8. What is the eligible EMI/NMI ratio for Home loan customers coming from income group of NAI from Rs.500,000/-and up to Rs.8,00,000/ a. 40 % b. 45 % c.60 % d. 50 % 9. What is the eligible EMI/NMI ratio for Home loan customers coming from income group of NAI of above Rs.10,00,000/ a. 40 % b. 50% c.55 % d. 70 % 10. In Housing Loans, normally, the number of co-borrowers is limited to a. two b. three c. four d. five 11. For adding cost of furnishings / interior to the cost of house/flat, the amount is considered up to ….. Per cent of the Project cost a. 5 % b. 10 % of the cost of the house/flat or Rs.25 lacs whichever is lower c. 15% d. 25% 12. For repairs and renovation, the maximum amount can be considered under Housing Loan scheme is.. a. 10 lacs b. 5 lacs c. 7.5 lacs d. 15 lacs


83

13. For Furnishing/consumer durables as part of the project cost, the maximum amount can be considered under Housing Loans scheme is … a. 3 lacs b. 2 lacs c. 25 lacs d. 5 lacs 14. If the borrower‟s Net Annual Income is Rs.5 lacs, what is the eligible EMI/NMI ratio? a. 40% b. 50 % c. 55% d. 60 % 15. What is the margin requirement (for the purpose of construction) when sanctioning a Housing Loan for Rs.75 lacs…. a. 20% b. 25% c. 15% d. 30% 16. What is the margin requirement (for the purpose of construction) when sanctioning a Housing Loan for more than Rs.75 lacs…. a. 20% b. 25% c. 15% d. 30% 17. The Administrative Clearance is not required for sanction of Home loans up to Rs.______ a. Rs.3 Crores b. Rs.5 Croes c. Rs.25 Crores d.Rs.10 Crores 18. What is the margin requirement when sanctioning a Housing Loan upto Rs.20.00 lacs for purchase of a house ready for possession … a. 10% b. 15% c. 20% d. 25% 19. “Operation Sankalp” is the caption given for reduction in Home Loan NPAs by way of a. Closure, up gradation through cash recovery b. Recovery through auction under SARFAESI Act c. Settling accounts in Lok Adalat & Compromise d. All the above


84

20. What is the eligible EMI/NMI ratio for Home loan customers coming from income group of NAI from Rs.800,000/-and up to Rs.10,00,000/ a. 50 % b.55 % c.60 % d. 65 % 21. The minimum stipulated LTV ratio for Home loan under construction, up to Rs. 30 lacs a. 80 % b. 85% c. 90% d. 95% 22. The minimum stipulated LTV ratio for Home loan under construction, above Rs. 30 lacs and upto 75 lacs a. 80 % b. 85% c. 90% d. 95% 23. What is the maximum repayment period available in Housing Loans…. a. 20 years b. 25 years c. 30 years d. 15 years 24. What is the maximum repayment period available to Home loan customers falling under NRI home loan …. a. 20 years b. 25 years c. 30 years d. 15 years 25. Penal interest should not be charged for irregular Home loan Limit upto Rs._______ a.2.00 lac b. 1.00 lac c. 0.50 lac d. 0.25 lac 26. For Home Loans above Rs.25000, if the irregularity exceeds EMI or installment amount, for a period of one month, the penal interest should be recovered at the rate of …. a. 1 % on the overdue amount for the period of default b. 2 % on the overdue amount for the period of default c. 3 % on the overdue amount for the period of default d. 4 % on the overdue amount for the period of default


85

27. In case of pre-payment and or pre-closure, the penalty will be levied on Home loans irrespective of the period for which the account has run or the source of funds.. a. 0.50 % b. 1.00 % c. 2.00 % d. No penalty 28. The Moratorium period for Home Loans of Individual houses and Apartments up to 7 Floors is… a. 12 months b. 18 months c. 24 months d. 30 months 29. The Moratorium period for Home Loans of apartments above 7 Floors and up to 14 floors is… a. 12 months b. 18 months c. 24 months d. 30 months 30. The Moratorium period for Home Loans of apartments above 14 floors and up to 21 Floors is… a. 12 months b. 18 months c. 24 months d. 30 months 31. The Moratorium period for Home Loans of Buildings with more than 21 Floors is… a. 18 months b. 24 months c. 30 months d. 36 months 32. The Limitation Period of Equitable Mortgage is _______ years from the date when the mortgage debts falls due, i.e. when a default takes place and the Bank makes a demand on the borrower a. 5 years b. 10 years c. 12 years d. 15 years


86

33. For Home Loans, the requirement of duly signed PDCs required to be obtained if repayment made through ECS/SI… a. Need not obtain b. 12 PDCs c. 18 PDCs d. 48 PDCs 34. Credit Information Reports contains repayment history of upto ______ months in each loan/credit facility availed by the borrower a. 12 months b. 18 months c. 24 months d. 36 months 35. If the „STATUS‟ in Credit Information Report is not blank, it shows the status of the stressed assets when the amount due is written-off by the bank and/or suit is filed. Say Yes or No. a. Yes b. No 36. Maximum permissible LTV ratio, for home loans above Rs.75 lacs is ___ a.70% b. 75% c. 80% d. 90% 37. The „In Principle” approval shall be valid for …. From the date of issue a. 15 days b. 30 days c. 45 days d. 2 months 38. The sanction of a Home loan will be valid for ____ months from the date of sanction a. 3 months b. 6 months c. 9 months d. 12 months 39. The property inspection is to be carried out and recorded at each stage of disbursement. Thereafter, i.e. after completion of house, inspection to be carried out … a. once in a year b. once in two years c. once in three years d. once in five years


87

40. The processing fee to be recovered for Home loans up to Rs.25 lacs… a. 0.25% of loan amount –Min :Rs.1000/ b. 0.50 % of loan amount c. 0.75 % of loan amount d. 1.00 % of loans amount 41. The processing fee to be recovered for Home loans above Rs.25 lacs and up to Rs.75 lacs is…. a. 0.25 % of loan amount b. 0.50 % of loan amount c. Rs.6500/ d.Rs.10,000/ 42. The processing fee to be recovered for Home loans above Rs.75 lacs is…. a. 0.25 % of loan amount b. 0.50 % of loan amount c. Rs.6500/ d.Rs.10,000/ 43. The turnaround time (TAT) fixed for home loans sanctioned under builder tie-up (same centre) at RACPC/RASMECC within ____ working days after receipt of application complete in all respects. a. 5 days b. 6 days c. 7 days d. 8 days 44. The concession on interest to Home loans sanctioned under Green Home Loans…. a. 0.25 % b. NIL c. 0.50 % d. 1.00 % 45. The concession in margin for Green Home loan is…. a. 5 % b. 10 % c.15 % d. No concessions 46. The concession on interest to Home loans sanctioned under plus schemes to Govt Employees/Teachers, Gram Niwas, Sahyog Niwas and the customers who is maintaining salary account with us…. a. Nil b. 0.25 % c. 0.50 % d. 1.00 %


88

47. The home loans categorized as Standard assets need to be inspected once in ….. a. 1 year b. 2 years c. 3 years d. 5 years 48. The home loans categorized as Non-Performing assets need to be inspected once in ….. a. Quarterly intervals b. Half-yearly intervals c. yearly intervals d. Monthly intervals 49. Home Loans sanctioned in Metros up to Rs……. Is taken in to account for Priority Sector Advance calculation a. 15 lacs b. 20 lacs c. 25 lacs d. 30 lacs 50.Home Loans sanctioned in area other than Metros up to Rs……. Is taken in to account for Priority Sector Advance calculation a. 10 lacs b. 15 lacs c. 20 lacs d. 25 lacs 51. Home Loans sanctioned for repairs and renovation up to Rs……. Is taken in to account for Priority Sector Advance calculation in Rural & semi urban areas a. 2 lacs b. 2.25 lacs c. 2.5 lacs d. 3 lacs 52. Home Loans sanctioned for repairs and renovation up to Rs……. Is taken in to account for Priority Sector Advance calculation in urban and metro areas a. 1 lacs b. 5 lacs c. 2.5 lacs d. 3 lacs 53. Above Rs._________ penal interest of 2% + applicable rate of interest on Housing Loan on the overdue amount for the period of default will be charged a. Rs.20,000 b. Rs.25,000 c. Rs.30,000 d. None of the above


89

54. The remuneration payable to Home Loan Counselors (HLC) for the loans procured up to Rs.5 crores per month by them…. a. 1.00 % subject to maximum of Rs.1,00,000 per proposal b. 0.50 % subject to maximum of Rs.1,50,000 per proposal c. 0.35 % subject to maximum of Rs.1,50,000 per proposal d. 0.10 % subject to maximum of Rs.1,50,000 per proposal 55. Maximum LTV Ratio for Home Loan in SBI upto Rs.30 lacs is ____ a.70 % b. 75% C. 80% d. 90% 55. What is the maximum amount of loan sanctioned under Home Equity Scheme? a.50 lacs b.1.00 cr c. 2.00 cr d. 5 cr. 56. Title verification and search report for a period of _________ years will be required to be obtained from the Bank‟s empanelled advocate at borrowers‟ cost. a. 12 years b. 18 years c. 24 years d. 30 years 57. The remuneration payable to Home Loan Counselors for the loans procured above Rs.7 crores per month by them…. a. 0.25 % subject to maximum of Rs.1,50,000 per proposal b. 0.50 % subject to maximum of Rs.1,50,000 per proposal c. 0.35 % subject to maximum of Rs.1,50,000 per proposal d. 0.40 % subject to maximum of Rs.1,50,000 per proposal 58. Group Personal Accident Insurance cover (death only) for Home Loan and Car Loan borrowers discontinued wef 01.07.2013. Say Yes or No a. yes b. No 59. For switching over to current interest rate, switch over fee of _____ of balance outstanding in HTL with a minimum of Rs.______ is to be recovered from the existing home loan borrowers with fixed rate / floating rate a. 0.50 % , Rs.1,000 b. 0.58 % , NIL c. NIL , NIL d. 0.58 % , Rs.5,000


90

60. The creation, modification or satisfaction of equitable mortgage, securitization & reconstruction transactions have to be filed with the Central Registry within a period of ___ days. a. 15 days b. 30 days c. 45 days d.60 days Answers to QUESTIONS ON HOME LOANS

1 f 11 b 21 c 31 d 41 c 51 a

2 b 12 a 22 a 32 c 42 d 52 b

3 c 13 c 23 c 33 a 43 b 53 b

4 d 14 b 24 c 34 d 44 b 54 c

5 d 15 a 25 d 35 a 45 a 55 d

6 c 16 b 26 b 36 b 46 a 56 d

7 d 17 c 27 d 37 b 47 c 57 d

8 c 18 a 28 b 38 b 48 b 58 a

9 d 19 d 29 c 39 c 49 c 59 d

10 b 20 d 30 d 40 a 50 b 60 b


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HOME LOAN TO NRIs: 1. The minimum age requirement for NRI Home Loans is… a. 18 years b. 20 years c. 21 years d. 25 years 2. For NRI Home loans, the individual should have a steady source of income and been employed for at least ….. And presently holding a valid job contract/work permit a. 1 year b. 2 years c. 3 years d. 4 years 3. For NRI Home Loans, the loan to be fully repaid by the age of …… a. 50 years b. 55 years c. 60 years d. 65 years 4. The maximum tenor (repayment period) of NRI Home loans is…. a. 15 years b. 20 years c. 25 years d. 30 years 5. The minimum amount for NRI Home loan is…. a. 5 lacs b. 3 lacs c. 2 lacs d. 1 lac Answers:

1 a

2 b

3 c

4 d

5 b


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SBI REALTY HOME LOAN: 1. The maximum loan amount can be considered under “SBI Realty” scheme, for purchase of Plot… a. 1 crore b. 2 crores c. 5 crores d. 10 crores 2. Under SBI Realty Home loans, for loans above _________ valuation to be done by two independent empanelled valuers, lower of the two valuations should be considered for loan assessment a. Rs.25 lacs b. Rs.40 lacs c. Rs.50 lacs d. Rs.75 lacs 3. Prior administrative clearance is to be obtained for loans above______ under SBI Realty Home loans a. Rs.25 lacs b. Rs.30 lacs c. Rs.40 lacs d. Rs.50 lacs 4. Under SBI Realty scheme, the construction of a house to be started within …… from the date of availment of loan a. 6 months b. 12 months c. 18 months d. 24 months 5. What is the eligible EMI/NMI ratio for SBI Realty Home loans for the customers coming from income group of NAI from Rs.200,000/-and up to Rs.500,000/ a. 30 % b. 40 % c.45 % d. 50 % 6. What is the eligible EMI/NMI ratio for SBI Realty Home loan customers coming from income group of NAI from Rs.500,000/-and up to Rs.10,00,000/ a. 40 % b. 45 % c. 55 % d. 50 %


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7. What is the eligible EMI/NMI ratio for SBI Realty Home loan customers coming from income group of NAI of above Rs.10,00,000/ a. 40 % b. 50 % c.55 % d. 65 % 8. Under SBI Realty Scheme, the penalty (Higher rate of interest) in case of delay in construction is to be charged at the rate of ……. Above the Base Rate after expiry of stipulated period a. 4.50 % above b. 5.00 % above c. 5.25 % above d. 5.50 % above 9. The maximum repayment period permissible under SBI Realty Home Loan scheme is… a. 120 months b. 150 months c. 180 months d. 240 months Answers:

1 d

2 c

3 d

4 d

5 b

6 b

7 b

8 c

9 c


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MAXGAIN HOME LOAN 1. For sanctioning SBI Max Gain Home Loan, the customer should have SB/CA with minimum balance of Rs…. a. Rs.5000 b. Rs.10000 c. Rs.15000 d. Rs.25000 2. The minimum loan can be sanctioned under SBI Max Gain Home Loan scheme is.. a. Rs.2.00 lacs b. Rs.20.00 lacs c. Rs.10.00 lacs d. Rs.5.00 lacs 3. The maximum loan can be sanctioned under SBI Max Gain Home Loan scheme is.. a. Rs.30 lacs b. Rs.50 lacs c. Rs.75 lacs d. No Upper cap 4. A premium of ______ % over and above the applicable interest rate will be recovered under Maxgain Scheme of Home loans above Rs.1 crore on newloans a. 1.00 % b. 0.50 % c. 0.25 % d. 0.10 % Answers:

1 a

2 b

3 d

4 c


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TRIBAL PLUS HOME LOAN 1. SBI Tribal Plus Home Loan can be considered with an age group of … a. 18 years to 50 years b. 21 years to 60 years c. 21 years to 55 years d. 18 years to 50 years 2. The maximum loan that can be sanctioned under SBI Tribal Plus Home Loan is… a. Rs.5 lacs b. Rs.10 lacs c. Rs.15 lacs d. Rs.20 lacs 3. Under SBI Tribal Plus Home Loan, the loan amount can be sanctioned for salaried employees ____ a. 36 times of NMIs b. 48 times of NMIs c. 60 times of NMIs d. None of the above 4. Under SBI Tribal Plus Home Loan, the loan amount can be sanctioned for Professionals, Businessman and Agriculturists ____ a. 2 times of NAIs b. 3 times of NAIs c. 4 times of NAIs d. None of the above Answers:

1 b

2 b

3 a

4 b


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GRAM NIWAS HOME LOAN 1. SBI Gram Niwas Home Loan can be considered with an age group of rural dwellers… a. 18 years to 50 years b. 21 years to 50 years c. 25 years to 55 years 2. The maximum loan that can be sanctioned under SBI Gram Niwas Home Loan is… a. Rs.2 lacs b. Rs.3 lacs c. Rs.5 lacs d. Rs.10 lacs 3. The maximum repayment period for SBI Gram Niwas and Tribal plus Home Loan schemes is… a. 10 years b. 15 years c. 20 years d. 25 years Answers:

1 a

2 c

3 b


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SAHYOG NIWAS HOME LOAN 1. “Sahyog Niwas”, is one of the Home Loan Schemes, meant for…. a. Rural Dwellers b. Tribal areas c. SHGs and its members 2. Under Sahyog Niwas Home Loan scheme, ______of the corpus of savings will be sanctioned as Home Loan a. 5 times b.10 times c. 2 times d. 6 times 3.The maximum repayment period available under SBI Sahyog Niwas Home loans a. 120 months b. 180 months c. 240 months d. 300 months 4. The interest concession available under SBI Sahyog Niwas Home loans a. 1.00 % b. 0.50 % c. Nil d. 0.10 % 5. Under SBI Sahyog Niwas, Self Help Groups should not charge their members more than ___ % of interest charged by the bank a. 2 % b. 3 % c.4 % d. 5 % Answers:

1 c

2 b

3 b

4 c

5 b


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GREEN HOME LOAN 1. Green Home Loans are meant for financing Green Buildings which are saving Energy to the tune of 20 - 30 per cent and saving water 30-50 percent, are presently having incentives of 5% waiver in margin and ….. % concession in interest rate a. Nil b.0.50 % c. 0.10 % d.0.60 % Answer:

1 a

CRE HOME LOAN 1. “CRE Home Loan”, is one of the Home Loans sanctioned to a person who owns ___ Or more houses in his name a. one b. two c. three d. four 2. “CRE Home Loan” is attracting ……. Per cent more interest rate than that of card rate to other Home loans under Maxgain a. 0.10 % b. 0.25 % c. 0.45 % d. 0.50 % 3.CRE Loans can be given as Maxgain facility also. Say Yes or No a) Yes b) No Answers:

1 b

2 c

3 b

HOME LOAN PAL 1. For sanction of Home loan under SBI Home Loan PAL (Pre-Approved Limit) scheme, the minimum loan amount should be… a. Rs.5 lacs b. Rs.10 lacs c. Rs.15 lacs d. Rs.25 lacs


99

2. Home loans sanctioned under PAL (Pre-Approved Limit) scheme are valid for … a. 2 month b. 4 months c. 3 months d. 6 months Answers:

1 b

2 b

SBI YUVA HOME LOAN 1. Which of the following age group eligible to avail Yuva Home Loan … a. 18 to 25 years b. 21 to 30 years c. 21 to 45 years d. 18 to 40 years 2. The Minimum NMI requirement to avail Yuva Home Loan is…. a. Rs.25000 b. Rs.35000 c. Rs.40000 d. Rs.30000 3. Normal EMI Repayment under Yuva Home Loan will start from a) Immediately after moratorium period b) From the next month after final disbursement c) From the 37th Month onwards d) None of the above 4. The maximum repayment period available under SBI Yuva Home loans… a. 15 years b. 20 years c. 25 years d. 30 years 5. The concession on interest at present available in case of SBI Yuva Home loan …. a. Nil b. 0.25 % c. 0.50 % d. none of the above


100

6. Overdraft facility is also extended under SBI Yuva Home loan. Say Yes or No. a. Yes b. No. 7. The unique feature of Yuva Home Loan in Loan quantum is: a.15% extra over and above the eligible limits per EMI/NMI ratio b. 20 % extra over and above the eligible limits per EMI/NMI ratio c. 25 % extra over and above the eligible limits per EMI/NMI ratio d. 30% extra over and above the eligible limits per EMI/NMI ratio Answers:

1 c

2 d

3 c

4 d

5 a

6 a

7 b

SBI TOP UP LOANS 1. SBI Home Equity scheme name has been modified as a. SBI Home Top Up Loan b. SBI Special Loan to HTL borrowers c. SBI PAL d. SBI Home Plus 2. The maximum amount that can be sanctioned to Home Loan borrower under SBI Home Equity (Top Up Loans) scheme a. 500 lacs b. 100 lacs c. 50 lacs d. 200 lacs 3. Under SBI Home Equity (Top Up Loans) scheme, the EMI/NMI ratio should not exceed….. for NAI > Rs.10.00 lacs a. 40 % b. 50 % c.70 % d. none of the above


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4. How many loans can be sanctioned to a single Home loan borrower under SBI Home Equity (Top Up Loans) scheme? a. only one b. two c. three d. no restriction 5. Under SBI Home Equity (Top Up Loans) scheme, the maximum repayment period is _______ a) 15 years b) 10 years c) Co terminus with the residual maturity of the Home Loan d) Either (a) or (c) whichever is higher 6. Applicants having net annual income of less than 3.00 lac will not be eligible for loan under SBI Home Equity (Top Up Loans) scheme. Say Yes or No. a. Yes b. No 7. The Processing fee recoverable for Home Equity loans at the rate of _______ of loan amount with a minimum of Rs. 1500/-and maximum Rs. 10,000/-. a. 0.25% b. 0.50% c. 0.35 % d.1.00% Answers:

1 a

2 a

3 c

4 b

5 d

6 b

7 c

CAR LOAN

1. To be eligible for used car loan , the car should not be more than ___ years

a. 2

b. 3

c. 4

d. 5

2. To avail certified pre-owned car loan, the car should not be more than___ years

a. 5

b. 6

c. 7

d. 8


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3. What is the maximum age limit to avail Car Loan?

a. 55 years

b. 60 years

c. 65 years

d. 70 years

4. What is minimum annual income criteria for salaried class to avail Car Loan?

a. Rs.2 lacs

b. Rs.3 lacs

c. Rs.2.5 lacs

d. Rs.4 lacs

5. What is minimum Annual income criteria for self employed to avail Car Loan?

a. Rs.2 lacs

b. Rs.3 lacs

c. Rs.2.5 lacs

d. Rs.4 lacs

6. What is minimum Annual income criteria for agriculturist to avail Car Loan?

a. Rs.2 lacs

b. Rs.3 lacs

c. Rs.2.5 lacs

d. Rs.4 lacs

7. How many borrowers ( maximum ) can be there in a single car loan application?

a. 1

b. 2

c. 3

d. 4

8. What is the EMI/NMI ratio if the NAI is <=Rs.5 lacs?

a. 50

b. 55

c. 60

d. 70

9. What is the EMI/NMI ratio if the NAI is>Rs.5 lacs but <=Rs.10 lacs?

a. 50

b. 55

c. 60

d. 70


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10. What is the EMI/NMI ratio if the NAI is >=Rs.10 lacs?

a. 50

b. 55

c. 60

d. 70

11. How many credit reports are required to sanction a car loan above Rs.5 lacs?

a. 1

b. 2

c. 3

d. Nil

12. For clear Sanction what should be the score applicable for car loan applicants?

a. Above 50

b. Above 55

c. Above 60

d. Above 70

13. Take over is permitted in SBI Combo Loan Scheme?

a. Yes

b. No

c. Not applicable

d. May be considered

14. What should be the minimum monthly income equivalent for availing NRI Car Loan?

a. USD 5000

b. USD 2500

c USD 2000

d. USD 1000

15. What is the name of the Scheme to avail Car loan by existing Home loan borrowers?

a. SBI Personal Car loan

b. SBI Home Car Loan

c. SBI Home combo loan

d. SBI Loyalty Car Loan

16. What is the maximum permissible loan amount for q.No.15 Scheme?

a. 75 % MV of property less outstanding of Home loan and Home Top Up

b. 70 % MV of property less outstanding of Home loan and Home Top Up

c. 65 % MV of property less outstanding of Home loan and Home Top Up

d. 50 % MV of property less outstanding of Home loan and Home Top Up


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17. What is the minimum amount of loan that can be availed for Car Loan OD?

a. 1 lac

b. 2 lacs

c. 3 lacs

d. No Minimum

18. What is the maximum Car loan for used car loan?

a. 15 lacs

b. 20 lacs

c. 25 lacs

d. 30 lacs

19. What is the minimum amount of loan that can be availed for Certified Pre-Owned Car Loan ?

a. 1 lac

b. 2 lacs

c. 3 lacs

d. No Minimum

20. What is the maximum amount of loan that can be availed for Certified Pre – Owned Car Loan ?

a. 5 lacs

b. 2 lacs

c. 3 lacs

d. No Maximum

21. Reimbursement are allowed to avail a Car loan, if the car regd is not more than _months

a. 1 month

b. 2 months

c. 3 months

d. 6 months

22. What should be the minimum NMI eligibility to avail a Two wheeler Loan ?

a. Rs. 6000

b. Rs. 6250

c. Rs. 6500

d. Rs. 7000

23. What should be the minimum NAI eligibility to avail a Two wheeler Loan ?

a. Rs. 72000

b. Rs. 75000

c. Rs. 78000

d. Rs. 84000


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24. What should be the minimum NMI eligibility to avail a Moped or Battery Operated two wheeler Loan ?

a. Rs. 5000

b. Rs. 5250

c. Rs. 5500

d. Rs. 6000

25. What should be the minimum NAI eligibility to avail a Super Bike Loan ?

a. Rs. 600000

b. Rs. 625000

c. Rs. 650000

d. Rs. 700000

1 d 2 d 3 c 4 b 5 d

6 d 7 b 8 a 9 a 10 c

11 b 12 c 13 b 14 d 15 d

16 a 17 c 18 a 19 a 20 a

21 b 22 b 23 b 24 a 25 a


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MORTGAGE LOAN 1. The minimum NMI requirement for availing Personal Loan against Mortgage of Immovable Property…

a. Rs.10000 b. Rs.25000 c. Rs.15000 d. Rs.20000

2. The maximum age up to which the loan against mortgage of immovable property can be considered

a. 50 years b. 55 years c . 60 years 65 years

3. The distance limitations for the property which needs to be mortgaged under loan against mortgage of immovable property is

a. With in the radius of 15 kilometers of the branch. b. With in the radius of 25 kilometers of the branch. c. With in the radius of 20 kilometers of the branch. d. No such limitation is available.

4. The maximum loan that can be sanctioned against mortgage of immovable property in Tier I and II cities

a. Rs.1 crore b. Rs.50 lacs c. Rs.2 crore d. 75 lacs

5. Under loan against mortgage of immovable property, the maximum repayment period allowed where check off is available

a. 60 months or the date of retirement, whichever is earlier. b. 120 months or the date of retirement, whichever is earlier. c. 150 months or the date of retirement, whichever is earlier. d. none of the above

6. Under loan against mortgage of immovable property, in normal conditions the maximum repayment period allowed where check off is not available

a. 72 months b. 120 months c. 150 months d. none of the above.

Answers

1 b 2 c 3 b 4 c 5 b

6 a


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SBI STUDENT LOAN SCHEME

1. Under SBI Student Loan Scheme, Caution deposit /building fund/refundable deposit supported by Institution bills/receipts the amount considered for loan should not exceed ________the tuition fees for the entire course.

a. 10 % b. 15 % c. 20 % d. 25 %

2. Under SBI Student Loan Scheme, Cost of a two-wheeler upto ________can be included in the expenses considered eligible for finance where the loan amount is secured by a suitable third party guarantee and/or tangible collateral security

a. Rs.40000

b. Rs.50000

c. Rs.60000

d. Rs.75000 3. Under SBI Student Loan Scheme, Each ward of a parent/guardian may be

sanctioned loans upto ______ individually without insisting for any security. a. Rs.2 lacs b. Rs.3 lacs c. Rs. 4 lacs d. Rs.5 lacs

4. The margin requirement for Education loan up to Rs. 4 lacs a. 5 % b. 10 % c. Nil d. None of the above

5. What is the margin requirement for studies in India, for Education loans above

Rs.4 lacs

a. 5 %

b. 10 % c. 15% d. Nil

6. What is the margin requirement for studies in Abroad… a. 5% b. 10% c. 15% d. 20%

7. The maximum limit that can be sanctioned for Abroad studies…. a. Rs.30 lacs b. Rs.15 lacs c. Rs.20 lacs d. Rs.25 lacs


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8. The maximum limit that can be sanctioned for studies in India…

a. Rs.5 lacs b. Rs.10 lacs c. Rs.12 lacs d. Rs.15 lacs

9. The security for Student Loan scheme to be obtained for loans above 4 lacs and up to 7.50 lacs

a. No security is required b. Collateral security required c. None of the above d. Suitable third party guarantee

10. The moratorium period for Student Loan scheme is… a. Course period + 1 year or 6 months after getting job whichever is earlier b. 6 months after completion of course or 6 months after getting job c. 6 months after completion of course or 3 months after getting job whichever is

earlier d. None of the above

11. For girl student what is the concession available under SBI Student Loan/SBI scholar loan/SBI student loans to staff or ward to staff scheme in terms of interest rate

a. 0.10 % b. 0.25 % c. 0.50 % d. 1.00 %

12. ___________concession in rate of interest to be provided for full tenure of the loan if full interest is serviced during the moratorium period (including course duration), under SBI Student Loan Scheme

a. 0.25 % b. 0.50 % c. 0.75 % d. 1.00 %

13. Penal interest @ ______ to be charged for loans above Rs.4 lacs for the overdue amount and overdue period.

a. 1 %

b. 2 %

c. 3 %

d. Nil 14. Under SBI Student Loan Scheme, If the student is not able to complete the course

within the scheduled time, extension of time for completion of course may be permitted for a maximum period of __________

a. 1 year b. 2 years c. 6 months d. Nil


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15. Due to the global meltdown Indian Banks‟ Association has advised us to consider genuine requests received from the student community in extending moratorium upto ________on a case to case basis

a. 24 months b. 30 months c. 36 months d. 18 months

16. What is the normal repayment period for SBI student Loan scheme a. 5 to 6 years b. 10 to 12 years c. 7 to 8 years d. 9 years

17. All those students who approach us for an education loan of more than Rs.4.00 lacs for studies abroad, will be required to make a deposit of __________. The amount will be maintained in the form of a Bankers Cheque payable to “SBI A/c......(name of the borrower)”

a. Rs.2000

b. Rs.3000

c. Rs.5000

d. Rs.10000 18. If the applicant does not avail the loan within a period of ______ of sanction of the

loan, the amount of BC of Rs.5000/- will be appropriated and credited to Commission A/c.

a. 3 months

b. 4 months

c. 5 months

d. 6 months 19. Under Finance Ministry guidelines, Loan applications have to be disposed of

within a period of ____________ a. 7 days b. 15 days c. 21 days d. 30 days

20. Interest subsidy scheme on education loan for economically weaker section proposed by ministry of HRD, Govt. of India education loans for eligible students for studies in India upto a maximum limit of ______ would be eligible for interest subsidy

a. Irrespective of the loan amount, interest accrued the limit upto Rs.5 lacs

b. Irrespective of the loan amount, interest accrued the limit upto Rs.10 lacs c. Irrespective of the loan amount, interest accrued the limit upto Rs.15 lacs d. Irrespective of the loan amountt, interest accrued the limit upto Rs.20 lacs

21. Under SBI Student Loan scheme, up to Rs._____ for studies in India and Rs.____ for studies in abroad are reckoned under Priority Sector advances

a. Rs.5 lacs and Rs.10 lacs b. Rs. 10 lacs and Rs.20 lacs c. Rs.7.50 lacs and Rs. 15 lacs d. Rs.10 lacs and Rs. 12 lacs


110

22. Considering the genuine difficulty faced by students, the tuition fee already paid to the institute by the borrower from their own sources for first semester at the time of counselling/ admission may be considered for reimbursement as a part of the scheme provided the reimbursement is claimed within _______ of the payment


23. In genuine cases, where the student/ parent is unable to produce the PAN card before the next scheduled disbursement, an extended time period of _______may be given to them for producing the PAN card

a. 30 days b. 60 days c. 3 months d. 6 months

24. Under Padho Pradesh - Scheme of the interest subsidy on Education loan for

overseas higher studies (Master Degree, M Phill & Ph.D) for students belonging to

minority communities who may also belongs to SC/ST/OBC category the annuall

family income ceiling is

a. Rs. 4.00 lacs

b. Rs. 4.50 lacs c. Rs. 5.00 lacs d. Rs. 6.00 lacs

25. What is the maximum age limit to apply for Student Loan? a. 21 years

b. 25 years

c. 30 years

d. No limit

26. Where should Scholarship amount availed by the Student should be loaded?

a. Should not be loaded

b. Should be loaded in the Loan Limit

c. Should be loaded in the Margin

d. Should be reckoned as a separate entity

27. For how many years extension of time can be given to a student who has availed

a Student loan for completing the scheduled course?

a. One year

b. Two years

c. Three years

d. No extension

28. Interest subsidy is provided to Student Loan Borrowers upto what limit?

a. 4 lacs

b. 7.5 lacs

c. 10 lacs

d. 20 lacs


111

29. Interest subsidy can be availed for the following period during the tenure of

Student Loan?

a. Moratorium period interest only

b. Course period interest only

c. Both Moratorium and course interest period

d. Not applicable

30. What should be the MAX. parental income to be eligible for interest subsidy?

a. 4 lacs

b. 4.25 lacs

c. 4.50 lacs

d. 5 lacs

Answer:

1 a 2 b 3 c 4 c 5 a

6 c 7 a 8 b 9 d 10 a

11 c 12 d 13 b 14 b 15 a

16 b 17 c 18 b 19 b 20 b

21 b 22 d 23 c 24 d 25 D

26 c 27 b 28 c 29 b 30 c


112

SBI SCHOLAR LOAN

1. The maximum amount that can be sanctioned under SBI Scholar loan for List A

institutions with collateral security _______ a. Rs.10 lacs b. Rs.30 lacs c. Rs.20 lacs d. Rs.25 lacs

2. The maximum amount that can be sanctioned under SBI Scholar loan for List A institutions without collateral security_______


3. The maximum amount that can be sanctioned under SBI Scholar loan for List B institutions with collateral security_______


4. The maximum amount that can be sanctioned under SBI Scholar loan for List B institutions without collateral security_______

a. Rs.7.50 lacs b. Rs.12 lacs c. Rs.15 lacs d. Rs.10 lacs

5. The margin requirement for SBI Scholar loan is a. nil b. 10 % c. 15% d. 5 %

6. The moratorium period for SBI Scholar loan scheme is a. 12 months after completion of course or 6 months after getting job whichever is

earlier b. Upto 6 months after completing the course c. 6 months after completion of course or 3 months after getting job whichever is

earlier d. None of the above

Answer

1 b 2 c 3 b

4 a 5 a 6 b


113

SBI LOAN SCHEME FOR VOCATIONAL EDUCATION AND TRAINING

1. Under SBI Loan Scheme for Vocational Education and Training, the maximum loan

that can be sanctioned for the courses of duration up to 6 months. a. Rs.50,000 b. Rs.100,000 c. Rs.150,000 d. Rs.200,000

2. Under SBI Loan Scheme for Vocational Education and Training, the maximum loan that can be sanctioned for the courses of duration ABOVE 6 months.

a. Rs.50,000 b. Rs.100,000 c. Rs.150,000 d. Rs.200,000

3. Under SBI Loan Scheme for Vocational Education and Training, the loan will be repaid after the moratorium period in Equated Monthly Instalments (EMIs) for Courses of duration up to 1 year:

a. Up to 3 years b. Up to 2 years c. Up to 5 years d. Up to 7 years

4. Under SBI Loan Scheme for Vocational Education and Training, the loan will be repaid after the moratorium period in Equated Monthly Instalments (EMIs) for Courses of duration above 1 year

a. Up to 2 years b. Up to 3 years c. Up to 5 years d. Up to 7 years

5. All Indian Citizens who intend to obtain primary medical qualifications from any

foreign country on or after ______________ are not required to obtain Eligibility

Certificate from the Medical Council of India

a. 15th May 2013

b. 15th June 2013

c. 15th July 2013

d. 15th Aug 2013

6. Loans to student entering into the chartered accountancy course conducted

byICAI only may be considered under Student Loan Scheme. A maximum loan of

Rs. ____ lac(s) may be sanctioned

a. 1

b. 2

c. 3

d. 4


114

Answer

1 a 2 b 3 a 4 C

5 a 6 b

SBI CAREER LOAN:

1. Under SBI Career Loan, the maximum loan that can be sanctioned for Rs._____ a. Rs.500,000 b. Rs.100,000 c. Rs.200,000 d. Rs.300,000

Answer: 1 – d

PERSONAL LOANS SBI SARAL:

1. Under SBI Saral scheme, the minimum net monthly income requirement is a. Rs.3000 b. Rs.5000 c. Rs.6000 d. Rs.6500

2. The maximum amount that can be sanctioned under SBI Saral scheme is a. 5 lacs b. 7.5 lacs c. Rs.10 lacs d. Rs.15 lacs

3. The minimum loan amount that can sanctioned for RUSU areas is Rs._____ and Metro and Urban areas is Rs.______ a. Rs.5000 and Rs.10000 b. Rs. 10000 and Rs. 20000 c. Rs.10000 and Rs. 24000 d. None of the above

4. Under SBI Saral, the EMI/NMI ratio should be a. 40 % b. 50 % c. 60 % d. None of the above

5. The maximum NMIs sanctioned under SBI Saral scheme for salaried… a. 6 months b. 12 months c. 18 months d. 24 months

6. The minimum score required for sanction of SBI Salaral loan …. a. 75 % b. 60 % c. 50 % d. 40 %


115

7. The maximum repayment can be extended under SBI Saral loan …. a. 24 months b. 30 months c. 36 months d. 48 months

Answers:

1 b 2 c 3 c 4 b 5 b

6 c 7 d

XPRESS CREDIT:

1. Under Xpress credit, the minimum net monthly income requirement is

a. Rs.3000 b. Rs.7500 c. Rs.5000 d. Rs.6500

2. The minimum loan amount that can be sanctioned under Xpress Credit scheme as

Term loan

a. Rs.24000 b. Rs.12000 c. Rs.40000 d. Rs.50000

3. The minimum loan amount that can be sanctioned under Xpress Credit scheme as Overdraft…. a. Rs.1 lac b. Rs.5 lac c. Rs.10 lacs d. Rs.24000

4. The maximum amount that can be sanctioned under Xpress credit scheme is a. Rs. 5 lacs b. Rs. 10 lacs c. Rs. 15 lacs d. Rs. 20 lacs

5. How many times of Net monthly income is considered for calculation of loan limit in case of Xpress credit a. 24 NMI b. 18 NMI c. 24 NMI d. 30 NMI

6. The maximum repayment period allowed under Xpress Credit scheme is a. 36 months b. 48 months c. 60 months d. 72 months


116

7. The renewal of Xpress credit loan can be allowed after ….. a. 6 months b. 12 months c. 18 months d. 24 months

8. The maximum loan amount that can be sanctioned under Xpress Credit scheme for teachers…. a) Rs. 15 lacs or 24 NMI whichever is lower

b) Rs. 10 lacs or 24 NMI whichever is lower

c) Rs. 15 lacs or 24 Months Gross Salary whichever is lower d) Rs. 15 lacs or 12 Months Gross Salary whichever is lower

Answers:

1 b 2 a 3 c 4 c 5 a

6 c 7 d 8


117

FESTIVAL LOAN SCHEME: 1. Under Festival Loan scheme, the minimum and maximum amount that can be

sanctioned to employees or self employed a. Rs.5000 and Rs.10000 b. Rs.5000 and Rs. 15000 c. Rs.5000 and Rs. 25000 d. Rs.5000 and Rs.50000

2. Under Festival Loan scheme, the minimum NMI required for sanction a. Rs.1000 b. Rs.2000 c. Rs.3000 d. Rs.5000

3. The maximum repayment period can be given to Festival Loan scheme a. 6 months b. 12 months c. 18 months d. 24 months

Answers:

1 D 2 c 3 b


118

SBI PENSION LOAN

1. The loan schemes SBI loans to pensioners and SBI Loan to affluent pensioners are merged and renamed as

a. Pension loan b. Pensioners medical loan c. Loan for pensioners d. SBI Pension Loan

2. SBI Pension loan is considered up to the age of the Pensioner and the family pensioner

is

a) 70

b) 72

c) 76

d) 74

3. The minimum amount that can be sanctioned for Pensioner under SBI pension loan scheme is

a) Rs. 5000

b) Rs.10000 c) Rs. 20000 d) Rs. 25000

4. The maximum amount that can be sanctioned for Pensioner up to the age of 72 years under SBI pension loan scheme is

a) 10 Months of Pension with the maximum ceiling of Rs.10 lacs b) 18 Months of Pension with the maximum ceiling of Rs.14 lacs

c) 12 Months of Pension with the maximum ceiling of Rs.3 lacs

d) 24 Months of Pension with the maximum ceiling of Rs.24 lacs

5. The maximum amount that can be sanctioned for Pensioner above the age of 72

years and up to the age of 74 years under SBI pension loan scheme is

a) 18 Months of Pension with the maximum ceiling of Rs.12 lacs

b) 18 Months of Pension with the maximum ceiling of Rs.14 lacs c) 12 Months of Pension with the maximum ceiling of Rs.3 lacs d) 10 Months of Pension with the maximum ceiling of Rs.10 lacs

6. The maximum amount that can be sanctioned for Pensioner above the age of 74 years and up to the age of 76 years under SBI pension loan scheme is


b) 18 Months of Pension with the maximum ceiling of Rs.14 lacs


d) 18 Months of Pension with the maximum ceiling of Rs.7.5 lacs

7. Under SBI Pension loan scheme the EMI/NMI ratio for pensioner is

a) 50%

b) 60% c) 40% d) 30%


119

8. The maximum amount that can be sanctioned for Family Pensioner up to the age of 72 years under SBI pension loan scheme is




d) 24 Months of Pension with the maximum ceiling of Rs.10 lacs

9. The maximum amount that can be sanctioned for Family Pensioner above the age

of 72 years and up to the age of 74 years under SBI pension loan scheme is

a) 18 Months of Pension with the maximum ceiling of Rs.4.5 lacs


c) 9 Months of Pension with the maximum ceiling of Rs.1.5 lacs d) 10 Months of Pension with the maximum ceiling of Rs.10 lacs

10. The maximum amount that can be sanctioned for Pensioner above the age

of 74 years and up to the age of 76 years under SBI pension loan scheme is



c) 9 Months of Pension with the maximum ceiling of Rs.0.50 lacs

d) 18 Months of Pension with the maximum ceiling of Rs.2.5 lacs

11. Under SBI Pension loan scheme the EMI/NMI ratio for pensioner is

a) 50%

b) 33%

c) 40% d) 30%

12. The maximum repayment period allowable in SBI pension loan for

pensioner / family pensioner up to the age of 70 years _____



pensioner / family pensioner at the age between 70 years and 72 years _____



pensioner/family pensioner at the age between 72 years and 76 years _____

a) 24 months

b) 36 months

c) 48 months

d) 60 months


120

15. The processing charges for availing SBI Pension loan scheme for

pensioner/family pensioner is

a) 0.50% of loan amount or minimum of Rs.250

b) 1.01% of loan amount or minimum of Rs.250

c) 0.51% of loan amount or minimum of Rs.250

d) 1.00% of loan amount or minimum of Rs.250

16. SBI Pension Loan can be given as Top-up loan (2nd loan) can be sanctioned after the date of first loan disbursement is____ pension drawn

a. 2 years b. 3 years c. 6 years d. 1 year

Answer:

1 d 2 c 3 d 4 b 5 a

6 d 7 a 8 b 9 a 10 d

11 b 12 d 13 c 14 a 15 C

16 d


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JAI JAWAN PENSION LOAN:

1. “Jai Jawan Pension Loan” for Armed Forces and Paramilitary forces, is sanctioned up to the age limit of a. 40 years b. 45 years c. 50 years d. 55 years

2. How many times of Net monthly pension is considered for calculation of loan limit in case of Jai Jawan Pension loan scheme a. 24 times b. 36 times c. 48 times d. 60 times

3. Under Jai Jawan Pension loan, the maximum loan amount that can be considered for pensioner a. 1 lacs b. 1.50 lacs c. 2 lacs d. 2.50 lacs

4. The maximum repayment period allowed under Jai Jawan Pension loan scheme is a. 48 months b. 60 months c. 72 months d. 84 months

5. Under Jai Jawan Pension Loan scheme, the EMI/NMI ration should not exceed ___ a. 30 % b. 40 % c. 45 % d. 50 %

Answer:

1 c 2 c 3 c 4 d 5 b


122

LOAN AGAINST BANK DEPOSITS, NSC/KVP , LIC POLICY AND GOLD ORNAMENTS

1. The margin requirement for sanction of loan against Bank deposits (against principal and accrued interest)… a. 10 % b. 15 % c. 20 % d. 25 %

2. The rate of interest to be charged for loan against Bank deposits, i.e. ____ per cent over and above the deposit rate a. 0.25 % b. 0.50 % c. 0.75 % d. 1.00%

3. The margin requirement for sanctioning loan against Govt. Securities / Public

Sector bonds, NSCs, KVPs, bank deposits RBIs relief bonds etc for general public

a. 30 % of the face value of the security. b. 25% on the face value of the security. c. 20 % of the face value of the security. d. 10 % of the face value of the security.

4. The margin requirement for sanctioning loan against surrender value of LIC/SBI

Life policies for general public

a. 5 % b. 10 % c. 15 % d. 20 %

5. The minimum age requirement for availing Personal Gold loans a. 18 years b. 21 years c. 23 years d. 25 years

6. The margin requirement for sanction of personal gold loan based on the Bank‟s advance value is, a. 10 % margin on advance value announced by the Bank . b. 20 % margin on advance value announced by the Bank. c. Nil, the advance value to be sanctioned. d. 40 % margin on advance value announced by the Bank.

7. The maximum loan amount that can be sanctioned under Personal Gold Loan a. Rs.3 lacs b. Rs.5 lacs c. Rs.10 lacs d. Rs.20 lacs


123

8. The Processing fee to be recoverable for Personal Gold Loan up to Rs.25000 a. Rs.100 b. Rs.250 c. Rs.256 d. Rs.511

9. Processing charges for Personal Gold Loan above Rs.25000 a) 0.54 % of loan Amt or Rs.1022/- whichever is higher.

b) 0.53 % of loan Amt or Rs.1022/- whichever is higher.

c) 0.52 % of loan Amt or Rs.1022/- whichever is higher.

d) 1.01 % of loan Amt or Rs.1022/- whichever is higher.

10. Processing charges for Personal Gold Loan provider for BIS Hallmarked

Jewellery/Ornaments and specially minted gold coins sold by Banks

a) 0.54 % of loan Amt or Min Rs.256/- Max Rs.511/-.

b) 0.53 % of loan Amt or Min Rs.256/- Max Rs.511/-.

c) 0.51 % of loan Amt or Min Rs.256/- Max Rs.511/-.

d) 1.01 % of loan Amt or Min Rs.256/- Max Rs.511/-.

11. The minimum gold loan under p-segment can be sanctioned in Rural & sem-urban

areas…

a. Rs.1000 b. Rs.5000 c. Rs.10000 d. Rs.20000

12. The minimum gold loan under p-segment can be sanctioned in urban areas… a. Rs.1000 b. Rs.5000 c. Rs.10000 d. Rs.20000

Answers:

1 a 2 b 3 d 4 a 5 b 6 c 7 d 8 d 9 d 10 c 11 c 12 d


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MULTIPLE CHOICE QUESTIONS on CBS - I

1. A password is best described as a method of user

a. Identification b. Authorisation

c. Authentication d. Confirmation

2. In a Computer network an IP address specifies a :

a. Network connection b. Router gateway c. Computer in the network d. Device on the network

3. The software that is being used in our foreign offices of our bank is

called

a. B@ncs24 b. I-Flex c. FINACLE d. BANKCOM

4. SB Connect, the dedicated lease line connectivity is maintained by

a. FNS Australia b. Datacraft Singapore c. TCS India d. HP System USA

5. Minimum length of password in CBS has ------- characters

a. 4 b. 5 c. 6 d. 8

6. Disaster Recovery Centre of the Bank is located at

a. Bangalore b. Chennai c. Delhi d. Kolkatta


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7. Which of the following software is used for preparing Corporate General Ledger(CGL)? a. B@ncslink b. B@ancs24 c. Finance One d. Exim Bills

8. Which of the following combinations is/are correct?

a. TCS – System Integrating Agency for Core Banking Solution(CBS) b. Satyam – Internet Banking c. Infosys - Finnacle Software for foreign Offices d. All are correct

9. Which is the shortcut key to obtain previously used Customer no.(CIF) /

Account Number?

a. F7 b. F10

c.. F12

d.. Alt+T

10. CIF (Customer Information File) creation has to be validated with a minimum score of ----- for free operation of accounts created under the said customer

a. 11 b. 99

c. 100

d. 110 11. Who is a Vault Teller in CBS ?.

a. A Vault Teller is the Joint custodian i.e. the Accountant of the Branch b. A Vault Teller is the user who replenishes cash in ATM. c. A Vault Teller is the user is working in cash department of a branch. d. A Vault Teller is the user is working in CPC

12. Which of the following application is presently not under “Single Sign On” Login?

a. ATM Web b. CMS

c. DWP

d. EMS


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13. What is a Check Digit?

a. it is used by the system to verify the correctness of the Customer/ Account number.

b. it is used for checking the balance in the account c. it is the number used by Finance one for EOD

d. it is the internal server reconciliation mechanism for Yearend processing

14. Who Is a Teller in CBS?

a. All Staff handling cash in any branch b. Any user in Core Banking system

c. Sales force members of Housing loans d. one who tells the details to the customer

15. What are User types in CBS ?

a. They represent the roles or different functionaries in a branch b. They represent the types of menus in CBS c. They represent the users in corporate internet banking d. They represent the types of reports in CBS

16. What is user capability level in CBS?

a. It refer to various reports in CBS b. It represent the users in corporate internet banking c. It refers to the powers assigned to each user for performing financial

transactions in the system. d. None of these

17. IBTS in CBS refers to

a. Inter Branch Transfer System b. Inter Branch Technical System c. Inland Bill Transfer System d. Inter Bank Technical System

18. VPS – Vendor Payment System is used in CBS for

a. Customer Transaction b. Inter Branch Transactions c. Non-Customer Transactions d. Charges – Expenses payment transactions


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19. B@ncs24, Software we use in CBS, has been purchased from -------

a. M/S Comlink Services, USA b. M/S Financial Network Services, Australia c. M/S Oracle Corporation, USA d. HP Systems,USA


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,

20. What is the expansion of VPIS ?

a. Alt+Shift+A b. Ctrl+Alt+A c. Ctrl+Shift+A d. Alt+Shift+F7

a. 45 ONLY b. 45, 50 & 60

c. 90 & above d. To be done by RBO

22. Short cut keys in CBS to view INB/SMS alert/ATM facility on any SB/CA account?

a. General Ledger Information File b. General Ledger Interest File c. General Ledger Intermediate File d. General Ledger Interface File

23. ADS implementation delivers which of the following components?

a. Common Global Active Directory Services Environment b. Delegated Data Management & Inventory Management c. Centrally Managed Directory Services d. All the above

24. What is Trace Number in CBS ?

a. Refers to committed transactions that are accepted in Database at CDC b. Refers to clearing system of transactions that are rejected by CBS c. Refers to CIF number rejected by CBS d. None of these

25. CBS de-activates a teller when he /she does not log in to system for

____ many days continuously

a. 7 days b. 21 days

ANSWERS

MULTIPLE CHOICE QUESTIONS on CBS - I

1

c 2 a 3 c 4 b 5 d

6 b 7 c 8 d 9 c 10 d

11 a 12 d 13 a 14 b 15 a

16 c 17 a 18 d 19 b 20 c

21 b 22 d 23 d 24 a 25 a

1 c 2 a 3 c 4 b 5 d

6 b 7 c 8 d 9 c 10 d

11 a 12 d 13 a 14 b 15 a

16 c 17 a 18 d 19 b 20 c

21 b 22 d 23 d 24 a 25 a

21. Which user type is required for enrolling and authorising tellers of the Branch for BAS (Biometric Authentication System)

c. 30 days d. 15 days


129

MULTIPLE CHOICE QUESTIONS on CBS - II

1. FTP in CBS refers to

a. File Transfer Protocol b. Fixed Term Product c. Fixed Transfer protocol d. None of the above

2. Which is the shortcut key to obtain image of the Customer/ Account

Number?

a. F7 b F10 c. F12 d. Alt+T

3. In CBS for Trickle feed file upload (SAL), the following is used

a. File Hash Generation. b. Transfer Batch

c. Encryption d. Decryption

4. Hash Generation Utility for Corporate Clients for Trickle feed file upload

(SAL) works on

a. JAVA b. DOTNET c. COBAL d. Web based

5. In CBS, Housing Loan Interest certificates are generated and sent to the

customer from

a. Centralised Mailing System, Mumbai b. Branch c. LHO d. Administrative Unit

6. For Opening STAFF CIF in CBS, the validation of the following is must

a. Name of the Employee b. Branch Name c. PF Index number d. Date of Appointment


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7. Under “Online Savings Bank Account Application”, applicant will be given time period of ____ to apply to the branch with KYC documents otherwise application will be discarded by the system automatically.

a. 15 days b. 30 days c. 45 days d. 60 days

8. TCRN in Online Savings Bank Account Application refers to

a. Temporary Account Reference Number b. Temporary Customer Reference Number c. Transaction Customer Reference Number d. Temporary Client Reference number

9. IN CBS if the branch is having cash difference then the same will appear

in which of the following reports?

a. GLCOMP b. GLCNTR

c. List of Suspense Account d. Cash Difference Report

10. Printing of VVR (hardcopies) been discontinued with effect from 01.10.2012. The Branches are required to keep the soft copy of

………………………… for inspection by Inspecting officials

a. Allocation Status Report b. EOD Status Report c. Last Seven Days Pending Report d. All of these

11. In CBS, VPS has been introduced to capture the details for which of the following tax?

a. SERVICE TAX b. Income Tax c. BCTT d. STT

12. In CBS double authorisation required for cheque payment of _

a. Rs.50 lacs & above b. Rs.100 lacs & above c. Above Rs.100 lacs d. Above Rs.50 lacs


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13. The data related to “On-Line VVR” allotment and checking would be available online in the CBS upto ………….. and beyond this, it will be stored on magnetic tape and would be retrievable on request through service desk

a. 5 years b. 4 years c. 3 years d. 2 years

14. The OVVR allotment and checking reports needs to be stored in separate server for retrieval purpose as and when required as per record retention period of ………………..


15. BGL Accounts in CBS refers to

a. Customer Type Accounts b. Government Accounts c. Non-Customer type Accounts d. None of the above

16. KYC deficient inoperative “Customer Information Files” and where the aggregate balance in all accounts linked to each CIF is less than or equal to …………….…… should be closed after giving a notice of

30 days.

a. 500 b. 1,000 c. 5,000 d. 10,000

17. When Hanging transactions are found during the transactions in CBS,

the user has to go for which screen to verify and take corrective steps

a. SCR 01010 b. SCR 11010 c. SCR 20010 d. SCR 08083


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b. Capability level 7 c. Capability level 9 d. Capability level 16

19. In IBCH enabled branches, the teller who handles cash has to necessarily perform the following transactions before sign-off

a. Close the Cash Drawer

b. Reconcile the Cash Drawer c. LOCK the Cash Drawer d. None of the above

20. In CBS environment, Cheque book for customers are despatched from a. Branch b. CCPC c. LHO d. LCPC

21. Which is the shortcut key used to verify the customer account number and name?

a. F7 b. F10 c. F12 d. F8

22. To have a competitive paper based payment mechanism and to leverage the capabilities of CBS, SBI introduced _________

a. Multi City Cheque b. IOI c. Bankers Cheque d. Draft

23. To provide fee collection facility for institutions through our CBS platform, SBI introduced _________

a. Power Jyoti Account b. SURABHI Account c. MOD Account d. CLTD account

24. For Setting up SWEEP for SB plus account, the User will select the following Cycle in the SWEEP screen a. Daily

b. Weekly c. Monthly d. Either B orC

18. The maximum USER capability level given to the branch users is a. Capability level 5


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a. 4 digit b. 6 digit c. 8 digit d. 16 digit

ANSWERS

MULTIPLE CHOICE QUESTIONS on CBS - II

1 a 2 b 3 a 4 b 5 a

6 c 7 b 8 b 9 a 10 d

11 a 12 b 13 c 14 a 15 c

16 a 17 d 18 c 19 c 20 d

21 a 22 a 23 a 24 d 25 c

25. In CBS all the product codes are containing _________ digits


134

MULTIPLE CHOICE QUESTIONS on CBS - III

1. In CBS, When the user forgets his password or has made 3 unsuccessful attempts to login with invalid password, then the following is to be performed a. Change USER Status b. Forced Closure c. USER RESET d. Change Capability level

2. NPA tracking in CBS happens a. Daily

b. Weekly c. Monthly d. Annually

3. IRAC Status in CBS is applicable to which type of the following Account? a. BGL Account b. NPA Accounts c. CTA Accounts d. None of the above

4. GLCC in Finance one refers to a. General Ledger Classification Code b. General Ledger Chart of Code c. General Ledger Cash Code d. None of the Above

5. Finance One purchased from a. FNS, Australia

b. Comlink USA c. TCS d. Infosys

6. Stamping of NPA accounts in CBS is based on a. Arrear Condition

b. Overdue amount c. Limit expiry d. KYC deficient

7. In CBS, Collateral means

a. Security b. Document capture

c. Authorisation of transactions d. None of the above


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8. CDC refers to a. Computer Data Centre b. Customer Data Centre c. Central Data Centre d. Core Data Centre

9. Front end software used in CBS a. B@NCS24

b. Core c. CGL d. Bancslink

10. Password structure in B@ncs24 in CBS is

a. Password should contain only numerals and special characters b. Password should contain only alphabets, and special character c. Password should contain at-least one alphabet in capital letter, one

numeral and one special character d. Password should contain only alphabets and numerals

11. In CBS, If the customer has not got required KYC marks, then the account opened by system will have the following status

a. STOP b. HOLD c. LIEN d. INACTIVE

12. The movement of Security forms in CBS is controlled through which menu? a. TDS b. VPS

c. VPIS d. CTS

13. What does B@ncs24 mean?

a. Bank„s Automation and Network Connecting Software for 24 hours

b. Bank„s Automation and Networking Control System for 24 hours

c. Bank„s Accounting and Network Connecting Software for 24 hours

d. Bank„s Accounting and Network Control Software for 24 hours

14. Core Banking Department is situated at a. GITC, Belapur

b. Corporate Centre Mumbai

c. TCS Mumbai

d. LHO Chennai


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15. First branch to implement Core Banking Solutions is a. Navi Mumbai

b. Parliament Street Br. Delhi

c. PBB Hiranandani Mumbai

d. PBB Nungambakkam Chennai

16. Branch General Ledger accounts refer to _________

a. All the internal and intermediate accounts in Core Banking b. Deposit accounts of the customers

c. Advance accounts of the customers d. NPA accounts at the branch.

17. CBS consists of two accounting packages

a. B@ncsOne and FinanceOne b. B@ncs24 and FinanceOne

c. B@ncs24 and Finance24 d. B@ncs24One and FinanceOne24

18. Finance One consolidates the Accounts and Transactions in the

a. Corporate General Ledger (CGL) b. Branch General Ledger (BGL)

c. Branch Corporate Ledger (BCL) d. Corporate Branch Ledger (CBL)

19. The process of scanning of cheques and transmitting the electronic

image, instead of the physical cheque, in the clearing cycle is known as a. Cheque Imaging b. Cheque Truncation

c. Cheque Scanning d. Cheque clearing

20. The company which has been entrusted with customisation, integration and pilot implementation of Core Banking Solutions is

a. Cognizant

b. Infosys

c. Wipro

d. TCS Limited

21. The CBS for foreign offices is supplied by

a. Satyam b. Infosys c. FNS d. Data Craft


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22. SBIICM is located at

a. New Delhi b. Mumbai

c. Hyderabad d. Chennai

23. Identify the feature of our CBS ?

a. 24x7 Processing b. On-line, Realtime, Anywhere Banking c. Support for Multiple Delivery Channels

d. All of these

24. Whenever the user in CBS moves out temporarily from the system he should _________ as a matter of security

a. Log out of the CBS b. Use screen lock icon so that others cannot access CBS using

the user login id c. Switch off the monitor of the computer he is working d. None of these

25. What is a prompt screen in CBS?

a. It refers to a screen displaying deposit products to customers b. It refers to the advertisement screen put up in public places c. It is a screen in which a few details are collected from the user

to bring back results from the server. d. It refers to set of menus in retail internet banking

ANSWERS

MULTIPLE CHOICE QUESTIONS on CBS - III

1 c 2 a 3 b 4 a 5 b

6 a 7 a 8 c 9 d 10 c

11 a 12 c 13 b 14 a 15 c

16 a 17 b 18 a 19 b 20 d

21 b 22 c 23 d 24 b 25 c


138

MULTIPLE CHOICE QUESTIONS on CBS - IV

1. Conversion of Plain Text to Cipher Text using certain logic

a. Encryption b. Decryption c. Coding d. Debug

2. Expand CCDP

a. Centralised Credit Data Processing b. Centralised Customer Data Portal

c. Centralised Code Data Point d. Centralised Credit Dynamic Portal

3. What is C-Cube? a. Centralised Clearing Cell b. Centralised Credit Cell c. Centralised Capital Calculator d. Centralised Capital Convertor

4. The Name of the website launched by the bank to track stressed assets

at the branch in a systematic manner.

a. CCDP b. Project Ganga c. AT@M d. SBIDWP

5. …..................... users can login on the same day after completion of

the INB registration process in CBS.

a. RINB b. CINB-Saral c. Khata

d. All of these

6. Name the category of 25 CBS reports pertaining to important areas of Branch functioning & Customer Service like VVR status, Probable NPAs, Failed SI/Sweeps etc, that are necessary for effective control & mitigating risks at the Branch.

a. Exception Reports b. Transactions Reports c. MIS Reports d. Other Reports


139

7. In CBS, under TDS automation functionality, the amount of TDS

deducted gets credited to a the following BGL account

a. BGL Account - 98533 b. BGL Account - 98534

c. BGL Account - 3199362 d. BGL Account – 98516

8. In CBS environment, AT@M refers to

a. Any Time Account Maintenance b. Alternate Transactions Maintenance c. All transactions At monitoring d. Asset Tracking @nd Monitoring

9. Which software acts as a platform for Asset Liability Management ?

a. CS Exim Bill b. Oracle Financial Services Application Suite (OFSA) c. Finance One d. B@ncs 24

10. What is Roopantar

a. Improvement in CBS Teller Experience for better customer service b. Project on migration to a new front office software c. Next phase of Arohan programme d. Name of Hi-Tech branch opened at Mumbai Circle

11. The printing of VVR has been discontinued since

a. 01.04.2012 b. 01.06.2012

c. 01.10.2012 d. 01.01.2013

12. Which of the following transactions is excluded from OVVVM?

a. ATM Teller b. INB Teller

c. POS Teller d. All of the above

13. After an account is stamped as NPA by the system

a. Unrealised Interest is reversed b. Further Interest application is stopped c. Provision is calculated d. All of the above


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14. Mobiliser is to be input under a. Core option tab b. Miscellaneous Tab c. Term Account Option


15. Term basis for TDR/STDR accounts is to be selected as

a. Month b. Days c. Quarter d. Half year

16. Which of the following parameters impacts TDS in deposit account?

a. PAN b. Date of Birth c. Gender Code

d. All of the above

17. For opening Accounts in CBS, the following is must

a. PAN b. Form 60 or 61 c. Either of a or b


18. GLCNTR report shows the outstanding in

a. CGL Suspense Account b. Technical Suspense Account c. System Suspense Account d. All of the above

19. The start date should be ___________in sweep creation for SB Plus.

a. Later than the opening date of SB Plus b. Opening date of SB Plus

c. Any date d. It should be left blank

20. Before transferring an account to Recalled Assets, the IRAC

status should be a. 1 b. 2 c. 3 d. 4 and above

21. The report „List of NPA Accounts‟ is a ____________ report

a. Daily b. Weekly c. Monthly d. Yearly


141

22. Quick Loan Account screen is used in CBS to create

a. Gold Loan accounts b. Revised KCC accounts c. Tractor Loan accounts d. a & b

23. In CBS, While opening Housing Term Loan „Loan term‟ should be

given

a. Days b. Weeks c. Months d. Years

24. After opening the Deposit Accounts at the branch, the relative

account opening forms should be sent to

a. LCPC b. CCPC c. CPPC d. LHO

25. The website developed and maintained by CBS for downloading the

reports and extracts and other User related functions is

a. Service Desk b. SBI-DCOG

c. State Bank Times d. CMS

ANSWERS

MULTIPLE CHOICE QUESTIONS on CBS - IV

1 a 2 a 3 c 4 c 5 d

6 a 7 c 8 d 9 b 10 a

11 c 12 d 13 d 14 b 15 b

16 d 17 c 18 d 19 a 20 d

21 a 22 d 23 c 24 a 25 b


142

IT PRODUCTS AND RELATED SECURITY ASPECTS – TEST I

1. LOS stands for ?

(a) Loss at Standard status (b) Loan origination software

(c) Loss originated standards (d) Loan origination standard

2. Loan origination software is used for (a) Appraisal of retail loan products (b) Processing SME loan products

(c) Processing Agri loan products (d) All the above

3. eTradeSBI enables the customer to request the bank online (a) To Issue Letters of Credit and to handle related bill transactions (b) To apply for bid bond

(c) To pay for the vendors (d) To manage the entire supply chain

4. Exim bills is the software used in (a) LCPC (b) RCPC

(c) RASMECC/ RACPC (d) TFCPC

5. Translink software is used by the branches / offices (a) handling Western Union remittances

(b) handling forex transactions

(c) handling treasury operations (d) handling CMP transactions

6. What is the site address of our e-learning site (a) https://learning.sbi.co.in (b) https://mylearning.sbi.co.in

(c) https://mybanklearn.sbi.co.in (d) https://mybanklearning.sbi.co.in

https://learning.sbi.co.in/

https://mylearning.sbi.co.in/

https://mybanklearn.sbi.co.in/

https://mybanklearning.sbi.co.in/


143

7. Our bank has established contact centre at (a) Delhi and Hyderabad

(b) Bengaluru and Vadodara (d) Chennai and Mumbai (e) Calcutta and Ahmedabad

8. Callers to Contact Centre can reach round the clock by dialing (a) 080-26589990 or 1800 425 3855 or 1800 11 22 22 (b) 080-26599999 or 1800 425 3888 or 1800 11 22 11 (c) 080-26599990 or 1800 425 3800 or 1800 11 22 11 (d) 080-26599990 or 1800 425 3855 or 1800 11 22 55

9. What are the services not provided by our Contact Centre? (a) Complaints Management

(b) Balances on customer accounts on mobile (c) Payment tracking (d) Online banking password generation

10. Which functionality is not handled through Complaint Management

System presently :

(a) Attach scanned JP log/eJ against the complaint (b) File a complaint (ATM only)

(c) Generate report of overdue complaints. (d) handle SMS unhappy customers

11. One can use Bank's HR Dashboard site for the following data for :

(a) Expenses analysis

(b) Charges analysis (c) Recruitment analysis (d) Retirement analysis

12. Expand CIARC (a) Centralised Information Access Regulatory Committee (b) Centralised Internet Access Regulatory Committee (c) Central Internet Access for RINB Cusotmers (d) Central Information Authority for Registry Compliances


144

13. For bank's business requirements authorised users can access positive list of

websites approved by

(a) Centralised Information Access Regulatory Committee (b) Centralised Internet Access Regulatory Committee (c) Central Internet Access for RINB Cusotmers (d) Central Information Authority for Registry Compliances

14.Expand ADS (a) Assest Delivery Services

(b) Asset and Deposits Statement (c) Active Deposit schemes (d) Active Directory Services

15. Which company has developed Active Directory Services ? (a) Oracle

(b) Microsoft (c) State Bank of India

(d) System Networks Ltd.

16. Active Directory Stores User Information, credentials and computers

resources at Circle Level

(a) Operating system details of the user's system (b) Cif level changes

(c) User Information, credentials and computers resources (d) Audits the active applications the user has operated for the day

17. What is the name of the software used by the bank used for online forex

rates

(a) Mercury FX (b) Mercury SX

(c) Mercantine Rates (d) Online Mercar

18.What are Positive Websites in our bank ? (a) websites which dealiing in self developement areas (b) websites used by the customers for queries (c) website which are blocked for security reasons (d) websites/ URLs available for Banks business purpose to authorised users


145

19. What is the new initiative to help employees of the Bank to clarify online, any doubts they may have regarding various products/processes of the Bank (a) Knowledge help line

(b) Knowledge and Training helpline (c) Training online (d) Ask us any doubt

20. Expand ASBA ? (a) Assets suppported by Bank Account (b) Application and Stock Broking Amount

(c) Applications Supported By Blocked Amount (d) Assets sub-standard bank account

21. ASBA facility can be used for (a) Applying G Sec

(b) Applying debt mutual fund NFO (c) Initial and Follow-on Public Offers (IPO and FPO), Rights Issues, and Debt Issues (d) Applying RBI Bonds

22. Which is the nodal branch for ASBA facitliy ? (a) Capital Market Branch, Mumbai

(b) Diamond dollar branch, Mumbai (c) GAD Operations branch, Nagpur

(d) New Delhi Main branch

23. Which facility is enabled for the customer to apply online through SBI

website

(a) Online Trading account (b) Online Demat

(c) Online agri loan (d) Online personal loan

24. What is e-Pay? (a) e-Pay is online bill payment services, launched by SBI (b) enables the sme customers to collect the receivables (c) enables pension payments by CPPC (d) It is an online facility for forex payments


146

25. What is the technology platform based on which SBI Enterprise

Messaging System is functioning ?

(a) based on Oracle (b) based on B@ncs 24 (c) based on Base 24 (d) based on IBM Lotus Domino/Notes

26. Which the feature not supported by our SBI EMS mail system (a) Enables the user to access positive websites (b) Access from multiple devices

(c) users can share calendar and organize group meetings (d) Every user can create his/her own blog

27. Recently finance ministry has instructed all PSBs to “migrate totally” to ________________ payment channels for making payments to their

customers.

(a) VSAT (b) MICR based (c) Paper based

(d) electronic 28. What is the technology channel of Bank which uses „Internet enabled PC Kiosk channel‟ operated through Business Correspondents (BC) (a) Net banking channel

(b) Bio-metric channel (c) Green channel counter (d) Kiosk banking

29. Expand SSL ? (a) Secure Socket Layer (b) Secure Standard Layer

(c) Security in State bank layer (d) System Secured by Latch

30. Expand ICCOMS (a) Internet enabled Currency and Cash operations Management System (b) Intensive Cash Component Operations and Management System (c) Integrated Computerised Currency Operations and Management System (d) Institutionalised Currency, Cash of Monetary System


147

31. Expand iFAMS ? (a) Inter-branch Furniture Assets Management System (b) Intranet based Fixed Assets Management System (c) Internet and Intranet Fixed Assets Maintenance System (d) Inter-core Furniture Assets Management System

32. What is SPAM ? (a) Confidential papers thrown in the dustbin

(b) Electrical spikes that can harm a computer

(c) Having a Maker and Checker system for all transactions

(d) Unsolicited e-mail

33. CISO in SBI is

(a) Chief Information Security Officer

(b) Chief IT Systems Officer

(c) Central Information Security Office

(d) Chief Information Safety Officer

34. You are the System Official and are busy attending to some calls of users, when a hardware vendor comes for maintenance. You should : (a) Allow him to carry out his work in the system room, while you finish the jobs at hand. (b) Since the hardware vendor is a routine visitor, allow him to attend to your systems in the system room. (c) Allow him to complete his maintenance work and ask him to record his visit in the Access Register. (d) Accompany him to the system room, record his visit in the Access Register, and then provide him access to the system as authorised.

35. You receive an attachment in an e-mail from an unknown source. What should you do in such a situation as per bank's policy ? (a) Click on the attachment to see if it contains any clues about the sender.

(b) Click on the attachment to view its contents.

(c) Delete the e-mail without opening it.

(d) Run a virus scan on the attachment before opening it.

36. Of the pairs of user IDs and passwords listed below, which pair is the

strongest? (a) Admin and Admin

(b) Super and sup123

(c) User1 and usr1234

(d) Sanjay and ms@tp078


148

37. An employee of XYZ Company has an account with your bank. You receive an e-mail from the company requesting for details of the balance in that employee‟ s savings account and the names of the nominees. What

will you do? (a) Give the details because the company is the employer.

(b) Not give any details because the person requesting for the information has not come personally to the bank. (c) Not give any information because it amounts to an unauthorised disclosure of customer information. (d) Give the information because every customer has a right to information.

38. Whether Nodes in your Branch / Office which are connected to SB Connect can be connected to internet directly (a) It is prohibited

(b) It can be connected if there is business need and with the approval of CC-IT Networking dept. (c) Can be connected after taking all precautions, no approval required

(d) Can be connected with the approval from ITS department

39. Which department should authorise direct Internet access in a Branch /

Office/Department of the Bank?

(a) Information Security Dept (ISD)

(b) IT Network Department at Global IT Centre (GITC) Belapur

(c) Branch Manager / Head of the Dept or Office

(d) ITS dept at LHO

40. The most important feature of a good password is that it:

(a) Consists of the user„s name, abbreviated name, or initials (b)

Consists of the names of the user„s family, friends, colleagues, or institution (c) Is a combination of letters of the alphabet and numerals

(d) Is a combination of alphabets, numbers and special characters

41. Which files should be scanned for virus before opening? (a) All files from external sources

(b) Only internet downloads and email attachments (c) Only files shared through network (d) Files on removable media like CDs/floppies


149

42. It is a good practice to configure browser not to remember web

application passwords

(a) Applicable only for Intranet applications (b) Applicable only for Internet applications (c) Both A & B (d) None of the Above

43. Which of the following is the most effective method to protect

sensitive data on laptop

(a) By creating hidden files/folders (b) By enabling Boot level power-on password (c) By enabling screensaver (d) Encrypt all sensitive data

44. When can emails be treated as authorisation for initiating

transactions?

(a) When emails are authenticated through phone calls (b) Critical transactions are not done based on emails under any (c) When emails are digitally signed and verified (d) When emails are followed by documents in physical form. circumstances.

45. Who is primarily responsible for the Physical and Logical security of Desktop as per the Acceptable Usage Policy of the Bank ? (a) Branch Manager / Head of the Departrment

(b) System Administrator

(c) User to whom the desktop is allotted

(d) Information Security Department (ISD) 46. Which of the following administrative measures will facilitate in securing Banks Information Systems assets (a) Conducting effective Back ground checking of all employees at the time of recruitment (b) Job rotation

(c) Creating awareness among employees about Information Security

(d) All of the above

47. As per the acceptable usage policy of the Bank,which of the following

statement is true regarding the usage of internet access provided by the Bank

(a) Employees should use the Internet access provided by the Bank only for the official purpose (b) Employees should use the Internet access provided by the Bank only for official purpose and occassional personal purpose without affecting Banks work (c) Bank is not monitoring the usage of Internet access provided to the employees (d) None of the above


150

48. Which of the following statement/s is/are true as per the acceptable

usage policy of the Bank (a) Confidential and sensitive information should not be send over e-mail even if protected by encryption. (b) Do not provide email accounts of any other user in the bank to any website, mailing list, newsgroup or discussion boards without appropriate authorization. (c)

Do not subscribe to mailing lists using your Bank„s official email account as the volume of mail traffic can be large and overflow mailbox storage space. (d) Both B & C

49. Which one of the following settings of the browser is NOT advisable to

have. (a) Set browser security setting to medium

(b) Configure browser to remember web application passwords

(c) Enabling ID displays in web applications

(d) Maintaining history of URLs

50. If a user finds data or files stored on his desktop altered or deleted

without his knowledge, it could mean (a) The operating system has been updated

(b) The anti virus has been updated

(c) The system has been compromised

(d) None of the above

*****

IT PRODUCTS AND RELATED SECURITY ASPECTS – TEST I –KEY

1 2 3 4 5 6 7 8 9 10

b d a d a d b c d d

11 12 13 14 15 16 17 18 19 20

d b b d b c a d a c

21 22 23 24 25 26 27 28 29 30

c a a a d a d d a c

31 32 33 34 35 36 37 38 39 40

b d a d c d c a b d

41 42 43 44 45 46 47 48 49 50

a c d c c d b d b c


151

IT PRODUCTS AND RELATED SECURITY ASPECTS – TEST II

1. Social Engineering is (a) Hacking the system by exploiting technical vulnerabilities of the network

(b) Attacking or penetrating a system by employing confidence tricks on users, rather than by means of a technical attack. (c) Attack on the Social Networking sites


2.What is the meaning of the term "Phisher" (a) Its is a kind of virus

(b) It is a Computer program

(c) Phisher is a fraudulent person , who tries to trick people to disclose personal & confidential information like Account number ,Password , PIN etc, through e-mail, phone calls & SMS. (d) None of the above

3. Your customer has received an email from the Bank, asking to furnish some sensitive information like username , password, PIN number etc. Which of the following is the most appropriate action . (a) Tell the customer not to respond to such mails as Bank never seek such information from the Bank (b) Ask the customer to change the PW . PIN etc if he has responded to the mail revealing all the sensitive information. (c) Report this incident to report.phishing @sbi.co.in


4.One Saturday evening one of your customer called you and reported that he lost his ATM card. Which of the following reaction is most appropriate ? (a) Politely tell the customer that nothing can be done now as the Branch is closed and request him to give a letter on Monday . (b) Tell the customer to send an SMS UNHAPPY to the designated number (c) Tell the customer not to worry as without PIN number nobody can withdraw money and request him to apply for a new ATM card at the earliest convenience. (d) Tell the customer to call immediately SBI Contact centre for hot listing the ATM card .

5. Which of the following statement is NOT true (a) Firewall in a computer network prevents fire spreading in a computer network. (b) Encryption technology is used to maintain the confidentiality of sensitive information. (c) Trojan is a malicious program in which malicious or harmful code contained inside apparently harmless program or data. (d) A Computer worm is a software; but is harmful.


152

6. A branch needs to establish network connectivity with one of their corporate customers for file transfer. What should the course of action be? (a) Approval should be sought from Branch Manager before any such connection can be established (b) Approval should be sought from ITS Dept at LHO before any such connection can be established (c) Approval should be sought from IT Networking Dept at Corporate Centre before any such connection can be established (d) Such connections are prohibited

7.Which of the following is a security incident (a) Without a users knowledge the desktop wallpaper has been changed and some of the files deleted (b) A customer informing that he has received an e-mail from the Bank asking him to click on a link to update his Internet banking security (c) An employee sharing his user id and password with a colleague, since he would be on leave for a few days (d) All of the above

8. Which of the following can be used as a secure PIN for ATM? (a) Year of birth

(b) Your vehicle registration number

(c) Any random number which is not easily guessable

(d) Your employee number

9. If you receive a Phishing mail , which of the following is the most

appropriate action (a) Do not respond to it and report to Local Police station

(b) Do not respond to it and do not report it also

(c) Do not respond to it and report it to [email protected]

(d) Do not respond to it and immediately block your Internet Banking account

10. If a mobile Banking Customer loses his Mobile phone, what is the

course of action? (a) Deregister from Mobile Banking Service

(b) Call up the telecom service provider to block his SIM card

(c) A and B

(d) Restore his phone contact numbers from a backed up file.


153

11. Which of the following statement is true about Banks Internet Banking (a)

User can lock Internet Banking facility temporarily at INB site and approach the Branch for unlocking . (b) It is not possible to temporarily lock the Internet Banking facility by the user . (c) For temporarily locking Internet Banking facility , INB user has to necessarily approach the Branch (d) Giving wrong password 3 times is the only way to lock Internet Banking Facility , that too only for 24 hours.

12. ISSSC in SBI is (a) Information Systems Security Standards Committee

(b) Information Safety Security Steering Committee

(c) IT Security Safety Steering Council

(d) Integrated Systems Standards Security Council

13. Encryption means (a) Crying in the enclosed area/room

(b) Make readable data as an unreadable one

(c) Make unreadable data as a readable one


14.In computer security terms, what is hash (a) It is a substance, which is produced from ash

(b) An encrypted value

(c) A decryption key


15.In computer security terms, what is hash (a) It is a substance, which is produced from ash

(b) An encrypted value

(c) A decryption key


16. As per our Banks IS Security Policy, which of the following is treated as

Security Violation (a) Connections modems to computers without approval

(b) Introducing Virus

(c) Bypassing Access Control Mechanisms



154

17. Which one of the following is treated as inappropriate use of our SBI e-

mail system (a) Emails containing messages that may damage the reputation of the Bank

(b) Emails that contain virus, worms or malware

(c) Receiving your reset-password

(d) Both a & b

18. What method(s) can be used to protect sensitive data from prying

eyes? (a) Passwords

(b) File permissions

(c) Encryption


19. What is "phishing" ? (a) "Spoofed" e-mails and fraudulent websites designed to fool recipients into divulging personal financial data such as credit card numbers, account usernames and passwords

(b) A type of computer virus (c) An example of a strong password (d) None of the above

20. If you ever receive an unsolicited telephone call from someone claiming to need your password, what would you do? (a) Refuse and report immediately

(b) Write the password on a piece of paper, put it in an envelope and send it by mail (c) Tell him/her the password and change it the following day

(d) Send him/her the password via email

21. Of the following choices, which indicates when it is safe to open a file

attached to an e-mail? (a) When you know the sender, the attachment is expected, and it is not unusual in any way. (b) When the e-mail is only sent to you

(c) When the attachment is not an .exe or .com

(d) When you know the sender

22. Out of which one is not a measure to attain Physical Security in SBI ATM

(a) VSS

(b) DSS

(c) Access Lock

(d) PIN Verification


155

23. Who is authorized to block ports through firewall (a) IT-Networking dept. as advised by ISD

(b) ISD

(c) Service Provider

(d) System Administrator

24. What is the most common delivery method for viruses? (a) Email

(b) Instant Message

(c) Internet download

(d) Portable media

25. Which of the following is a proper use of email (a) Send out pricelists for your home-based business products

(b) Never email personal information

(c) Forward inspirational and humorous emails to your co-workers to brighten their day (d) Send an email to all your friends and co-workers to advertise a job opening in your area

26. The first step in Security Awareness is being able to ________ a

security threat (a) avoid

(b) recognize

(c) challenge

(d) log

27. What is the biggest vulnerability to computer information security?

(a) Instant Messaging, Peer-to-Peer (P2P) applications

(b) Malware - virus, worms, spyware

(c) Spam, Phishing attacks

(d) End Users

28. The National Financial Switch (NFS) promoted by IDBRT relates to (a) Networked Foreign Exchange transactions among banks

(b) Internet Banking Connectivity

(c) ATM connectivity among banks

(d) Single National Financial Software for all banks

29. Treasury Solution has been procured from (a)

TCS

(b) Data Craft

(c) (d)

Infosys Reuters/Unisys


156

30. What is the technology initiative that is internet based, biometricly enabled, realtime for financial inclusion (a) Rupee one initiative

(b) Kiosk Banking (c) FI banking (d) Project Zero Mass

31. Identify which is not a safety feature in retail internet banking (a) SMS based high security

(b) User defined third parties (c) By defining limits for transfers

(d) Branch educating the customer about password

32. Bank has introduced hash generation utility for corporate clients in

trickle feed file format for

(a) it requires for Dotnet platform (b) CDC requires for encryption purpose (c) system can process file very fast (d) Security feature

33. What is the new technology initiative which acts as a pre-paid wallet on

Mobile phone

(a) State Bank Buddy (b) SBI FreedoM

(c) State Bank MobileCash (d) SBI Mobile Banking Services

34. What is the name of the company along with whom our bank has launched State Bank MobiCash services (a) M/s. EKO technologies

(b) M/s Oxigen Services (India) Private Ltd (c) FSS (d) Sify

35. Which is a feature of State Bank Buddy (a) Cash Deposit

(b) Cash Withdrawal (c) Cheque book request

(d) Fund Transfer from Wallet to Wallet

36. How to load amount in State Bank Buddy (a) By Fund transfer through Branch INB Portal

(b) Through ATM card (c) Through INB/IMPS/Ask Money option (d) Through Challan payment at SWO Counter


157

37. Which is not the functionality of State Bank Buddy? (a) Request for Cheque Book

(b) Ask money (c) Send money (d) Book a movie show

38. What is Metagrid ? (a) It is a computer security grid maintained by the bank

(b) Metagrid is web based software for retail sale of gold coins (c) It is a CBS server maintained New Delhi as a back-up (d) it is related to service charges for forex services

39. Expand GLS ? (a) Global Link Services (b) Grid Loan Software

(c) Global Loan Score (d) Gold Loan Software

40. What is the function of Global Link Services ? (a) It enables user to manage gold loan portfolio

(b) GLS handles the online remittance product - SBI Express Remit (c) it handles the ECB portfolio of corporates (d) it handles FCCB requirements of corporates

41. Secured Socket Layer is

(a) Used on Web-Page Communication to protect sensitive information

(b) Used in Computer Hard-disk as a method for Data Storage

(c) A Physical Component used to protect our PCs

(d) a Computer Programming Language

42 In computer security, this describes a non-technical kind of intrusion that relies heavily on human interaction. It often involves tricking people to break their own security procedures. (a) cyber terrorism

(b) hijacking (c) non repudiation (d) social engineering

43. The first step in Security Awareness is being able to ________ a

security threat

(a) avoid

(b) recognize (c) challenge (d) Log


158

44. What is Extended Validation SSL ? (a) it enhances the user comfort in handling transactions (b) it enhances the speed of the browser

(c) Extended Validation SSL Certificates give high-security web browser information to clearly identify a website's organizational identity (d) it is an anti-virus check available in the INB site

45. If a customer receives any e-mail/SMS or phone call attempting to fraudulently

elicit individual's user credentials, he must report immediately to

(a) the nearest police station (b) the incident to his friends

(c) send SMS Unhappy (d) mail id [email protected]

46. Name the Encryption Mechanism implemented for online banking

www.onlinesbi (a) 32 Bit SSL

(b) 64 Bit SSL

(c) 128 Bit SSL

(d) 256 Bit SSL

47. Process of attempting to acquire sensitive information is called

(a) Spoofing (b) Phishing (c) Morphing (d) Spam

48. Small files that are deposited on a user‟ s hard drive when they visit a Web site are called

(a) Codes

(b) cookies

(c) profiles

(d) trackers

49. A program that migrates through networks and operating systems by attaching itself to different programs and databases is a

(a) virus

(b) Worm

(c) denial-of-service attack (d) damage


159

50. Bank has laid detailed guidelines that would assist users in adopting secure practices in using computers called ____________ (a) Acceptable Usage

(b) Do's and Dont's

(c) Bank's Security Standandards (d) Network Security Standards

******

KEY

1 2 3 4 5 6 7 8 9 10

b d d d a c d c c c

11 12 13 14 15 16 17 18 19 20

a a b b c d d d a a

21 22 23 24 25 26 27 28 29 30

a d a a b b d c d b

31 32 33 34 35 36 37 38 39 40

d d a b d c a b a b

41 42 43 44 45 46 47 48 49 50

a d b c d d b b a a


160

MULTIPLE CHOICE QUESTIONS on CDM

1. CDM means

a. Cash Disbursing Machine b. Cash delivery Machine

c. Cash Deposit Machine d .Cash delivery Mechanism.

2. Maximum amount of deposit a customer can make in CDM per transaction is

a. Rs 40000/- b. Rs 25000/- c. Rs 49900/- d. Rs 30000/-

3. The denomination of notes that can be used for deposit in CDM

include

a. Rs 1000/- & 500/-only b. Rs 500/- & 100/-only

c. Rs 1000/-,500/- & 100/- only d .Rs 100/ only

4. Cash can be deposited in CDM by using which of the following cards?

a. SBI ATM Debit card b. SME Insta Deposit Card c. Green Remit Card d. All the above.

5. Maximum number of pieces allowed by CDM in a transaction

a. 100 b. 200 c. 50 d. 250

6. Modes of deposit of cash in CDM

a. Through GRC only b. By Input of Account no only c. Through ATM Card only d. Through ATM/GRC Card & Input of Account no


161

7. CDM while depositing cash ensures

a. Quality of notes b. Quantity of notes

c. Both Quality & Quantity d. None of the above.

8. The transaction in CDM is complete

a. When the card is swiped and cash is deposited b. When the card is swiped, cash deposited and the customer confirms. c. When the card is swiped, cash deposited and receipt is generated after

customer confirms the transaction. d. In addition to (c) above, password (pin)to be fed in the machine.

9. If there is difference in the number of pieces remitted by the customer in CDM

a. The amount equivalent to the actual no of pieces is taken into account b. The CDM will reject the transaction

c. The CDM will accept only after confirmation by the customer d. None of the above.

10. If any suspected note is detected by the CDM

a. “Note(s) retained by the machine. Please contact the Branch

Manager” this message will come. b. CDM will reject the entire amount of cash deposit. c. CDM will credit the account with the amount of deposit minus suspected

notes„ value. d. None of the above.

ANSWERS

MULTIPLE CHOICE QUESTIONS on CDM

1 c 2 c 3 c 4 d 5 b

6 d 7 c 8 d 9 c 10 a


162

MULTIPLE CHOICE QUESTIONS on GCC

1. GCC means

a. Green Credit Card b. Green Channel Counter c. Green Cash Credit d .None of the above.

2. Green Channel Counter is available for

a. Cash deposit b. Cash Withdrawal c. Funds Transfer d. All the above

3. The maximum amount that can be transacted through GCC at a

single transaction is

a. Rs 30000/- b. Rs 50000/-

c. Rs 40000/- d .Rs 25000/-

4 The cards that can be used for transactions in GCC

a. SBI ATM Debit card b SME Insta Deposit Card & Business Debit cards c Green Remit Card

d All the above.

5 When a transaction is put through GCC a. SWO has to enter the account no.

b. Customer has to enter the account no. c. Cash drawer menu will appear immediately on swiping the card d. System will ask amount of cash.

ANSWERS

MULTIPLE CHOICE QUESTIONS on GCC

1 b 2 d 3 c 4 d 5 c


163

MULTIPLE CHOICE QUESTIONS on GRC

1. Expand GRC a. Green Remittance Card b. Green Remittance Channel

c. Green Remit Card


2. Eligibility for GRC

a. Non Home branch Customers b. Home Branch customers c. Any customers d. None of the above

3. Type and Nature of GRC

a. Magstripe based card with Pin b. Magstripe based card without Pin c. Not a Magstripe based card d. PIN only

4 GRC can be used a. GCC in branches b. CDM

c. GCC/CDM both d. None of the above

5 For applying GRC the requirement is

a. Application form only b. Application form and one ID proof c. Application and photo d. Nothing is required

6. GRC can be used for

a. Cash deposit only b. Transfer only

c. Cash deposit & transfer both d. None

7. Maximum transaction limit per transaction through GRC

a. Rs 40000/- b. Rs 20000/- c. Rs 25000/- d. Rs 10000/-


164

8 Maximum Cap allowed per month through GRC is

a. Rs 50000/- b. Rs 250000/-

c.. Rs 25000/- d.. Rs 100000/-

9. Service charges for issue of GRC is

a. Rs 100/- b. Rs 200/-

c. Rs 150/- d. Rs. 20/-

10. After issue of GRC to customer details to be mapped to the card in Bankcs24 through Screen No

a. 000666 b. 000776.

c. 000786. d. 000886

11. GRC stock is received by branches from

a. Corporate centre b. LHO

c. Stationery Dept

d. LCPC

12. Message of credit to the account will go to

a. The depositor. b. The account holder c. Both a & b d. None

ANSWERS

MULTIPLE CHOICE QUESTIONS on GRC

1 c 2 a 3 b 4 c 5 b

6 a 7 c 8 c 9 d 10 a

11 b 12 c


165

ALTERNATE CHANNELS

MULTIPLE CHOICE QUESTIONS ON ATM

1. What is a White label ATM? a. It is an ATM owned and operated by third parties (not being a Bank) and the operators gets usage charges from the Bank, whose customers utilise the services of the ATM

b. It is the new type of white colour ATM supplied by NCR Corporation c. It is the ATM owned and operated by Reserve Bank of India d. It is the ATM run by National Dairy Development Board (NDDB)

2. What is the prescribed (by RBI) Networth for the non-banking entities

who will set up, own and operate White label ATMs?

a. Rs. 200 Crores b. Rs. 100 Crores

c. Rs. 50 Crores d. Rs. 250 Crores

3. What is the insurance coverage available to Platinum International

ATM card for Platinum account holders under PAI (death) cover?

a. 25 lacs b. 5 lacs

c. 3 lacs d. 10 lacs

4. What is the service charge payable by the ATM card holder for Replacement of Debit Card if magnetic stripe/Chip of the card is not

working / card is damaged?

a. Rs.204 b. Rs.306

c. Rs.51 d. NIL for first replacement and Rs. 102 from the second replacement

onwards

5. What is the eligibility criteria for issuing Platinum International Debit

Card?

a. Car loan borrowers having limit of >=Rs. 5 lacs or Home Loan Borrowers having limit of >= Rs. 20 lacs

b. Customers having Average Quarterly Balance (AQB) minimum Rs. 1 lac in SB/CA.

c. Depositors having deposit of > Rs. 10 lacs d. Any one of the four options


166

6. RBI has advised that only EMV Chip and PIN based cards to be issued w.e.from

a. 01.09.2015 b. 01.01.2016 c. 01.01.2017 d. No such Instructions

7. As per RBI guidelines, all payments made via Master/Visa credit

cards over phone (IVR system) will require an additional ---------- ?

a. Permanent Identification number b. Unique Identification number

c. One Time Password d. None of the above

8. ATM Cards for Minors can be issued, if a. The Minor is 14 years of age

b. Cheque enabled account c. Cannot be given d. Both (a) & (b)

9. ATM card of an inoperative Account is used in the ATM. What will be the

error code the customer receiving?

a. 70 b. 51 c. 0 d. 1

10. The software used by the ATM Switch Centre, Belapur for running of

ATMs is

a. Base 20 b. Base 24

c. Bank 24 d. Bank 20

11. A customer uses his ATM card in the machine and he gets a

response code „51‟ . What does it mean?

a. Unauthorised usage b. Card Expired

c. Invalid PIN d. Transaction not supported by this ATM


167

12. The time limit for resolution of customer complaints regarding failed

ATM transaction by issuing bank is ---- of receipt of the complaint?

a. 12 days b. 12 working days c. 7 days d. 7 working days

13. As per RBI directives, failed ATM transactions have to be settled

within 7 working days, failing which the bank has to pay ---- per day,

provided the complaint was lodged within 30 days of the transaction. a. Rs. 100/- b. Rs. 50/-

c. Rs. 200/- d. Rs. 500/-

14.The Validity period of State Bank Classic Debit Card is

upto ............... from the date of issue

a. 5 b. 10 c. 15 d. 20

15. SBI cards launched credit cards with EMV chip security features. EMV stands for.. a. Euro Pay, Master Card & Visa

b. Electronic Monitoring Vehicle c. Electronic Money Value d. None of the above

16. SBI launched the (World‟ s first) SBI-Debit_Cum-Transit card for ______ a. Delhi Metro Rail

b. Hyderabad Metro Rail c. Mumbai Metro Rail d. Namma Metro of Bengaluru

17. ATMs linked to the National Financial Switch (NFS) network are

managed by _________

a. IDRBT b. Reserve Bank of India (RBI) c. State Bank of India (SBI) d. National Payments Corporation of India (NPCI)


168

18. The largest number of ATMs under National Financial Switch (NFS)

network are owned by ______

a. ICICI Bank b. State Bank Group c. HDFC Bank d. Axis Bank

19. Annual Maintenance fee collected from YUVA card holder is Rs. ----

a. NIL b. Rs. 51/- c. Rs.102/-

d. Rs. 204/-

20. In case of duplicate PIN for ATM Cards, requests are accepted from

the customers through

a. Branches only b. Contact centre only c. Through RINB Portal d. All the above

21. PIN mailers not delivered within a period of ___ days are to be

destroyed after recording them in a register.

a. 15 days b. 30 days

c. 45 days d. 90 days

22. Validity of YUVA Card is

a. 5 years b. 10 years

c. 15 years d. None of these

23. Jointly operated accounts are not eligible for

a. ATM Banking b. Internet Banking c. Both (a) & (b) d. None of these


169

24. First Public Sector Bank to install ATM in India a. State Bank of India

b. Indian Bank c. Indian Overseas Bank d. Central Bank of India

25. First ATM in the world was established in which year and by which

Bank?

a. Barclays Bank in London in 1967 b. Barclays Bank in Manchester in 1967

c. American Express Bank in New York in 1967 d. American Express Bank in Connecticut in 1967

26. First ATM installed by SBI a. Mumbai 1993

b. Goa 1993 c. Jamshedpur 1993 d. Delhi 1993

27. For a State Bank of India customer ATM pin change can be done at a. Any Nationalised Bank ATM

b. SB group ATM only c. Any Private Bank ATM d. All the above

28. For Platinum International Card the daily limit of cash withdrawal

a. In India Rs. 100000/Abroad USD 2000 b. India 5000 /Abroad USD 1000

c. In India Rs. 200000/Abroad USD 3000 d. In India 100000/abroad USD 1000

29. For domestic ATM Card daily limit at POS

a. Rs. 25000 b. Rs. 50000

c. Rs. 75000 d. Rs. 100000

30. For YUVA card daily limit at POS

a. Rs. 100000 b. Rs. 150000

c. Rs. 200000 d. Rs. 250000


170

31. Which provides connectivity among ATMs of various Banks?

a. Central ATM Centre b. Central ATM Switch

c. National Financial Switch d. National ATM Centre

32. Error code 62 in ATM means

a. Invalid PIN b. Expired Card

c. PIN Tries Exceeded d. Ineligible amount

33. What is the charge of issue of duplicate ATM Card?

a. Rs. 204/- b. Rs. 102/- c. Rs. 306/- d. None

34. Customer can complain to CMS

a. By calling contact centre b. By visiting Home branch

c. By visiting any branch d. All the above

35. The user ID in CMS package is a. sbi.nnnn, where N is the branch code b. sbi@123 c. cms@sbi d. sbi.cms

36. Which of the following is not SBI Contact Centre Phone number?

a. 1800 425 3800

b. 1800 112 211 c. 1800 425 5425

d. 080-26599990

37. Find out which of the following cannot be complained in CMS?

a. Account debited but cash not dispensed b. Account debited twice for the same withdrawal

c. Account debited but amount not transferred to Merchant establishment d. ATM Card lost


171

38. The instructions that “ the signature on the request letter received

for issue of ATM PIN/Card: INB: Mobile Banking should be thoroughly verified‟ is issued by __________

a. The Bank b. The Income Tax Department c. The Bank and the RBI in KYC

d. The RBI only in KYC Guidelines

39. If the transactions (non-financial/financial) are more than five at other

bank ATM, the charges respectively are _____ and _____ per transaction

a. Rs.5, Rs.10/- b. Rs.10/-, Rs.25/- c. Rs.8.50, Rs.20/- d. Rs. 10/-, Rs. 20/-

40. The setting up of ATMs was recommended by

a. Rangarajan committee b. Saraf Committee

c. Narasimham committee d. Goiporia committee

41. The Bank has decided to renew the New ATM debit cards (Visa/Master Car d) at the expiry of 5 years from the date of issue. Which of the

following statement(s) is/are True?

a. The renewed card will be 16 digit PIN based with fall back on signature b. The card will not be renewed if the primary account is inoperative. c. The renewed card will have all the accounts linked as was with the old

card. d. All the above

42. State Bank Classic debit cards are issued for

a. Non cheque book accounts for domestic use

b. Non cheque book accounts for both domestic and international use c. Cheque book accounts for domestic use d. Cheque book accounts for both domestic and international use

43. State Bank Silver debit cards are issued for

a. Non cheque book accounts for domestic use b. Non cheque book accounts for both domestic and international use c. Cheque book accounts for domestic use d. Cheque book accounts for both domestic and international use


172

44. Charges for replacement of new Debit card if validity of debit card has

expired is

a. Rs. 100/- b. Rs. 200/-

c. NIL d. At the discretion of the BM

45. Maximum cash withdrawal from other Bank ATM (per day

transaction)

a. Rs. 10000/- b. Rs.20000/- c. Rs.40000/- d. No Limit

46. Customer contact centre is located at Bangalore and Baroda –

operated by

a. M/S TCS Limited b. M/S Infosys c. M/S Mphasis d. SBI only

47. One of the changes introduced in ATM Transaction flow to safe guard customer interest and Bank‟ s image is PIN entry time reduced from ___

to ___

a. 60 sec to 30 sec b. 30 sec to 20 sec

c. 20 sec to 10 sec d. None of the above

48. Name the head of the Government appointed committee who recommended that deployed ATMs by Public Sector Banks should be

equipped with a cash acceptor

a. Ashok Jhunjhunwala b. Parliamentary committee c. Narayan Meena d. Bharat Jhunjhunwala


173

49. Inorder to increase the number of SBI POS Terminals in the market the

bank coined the slogan “_____”

a. Hamara Bank – Hamara POS b. Hamamra Bank – Apna POS

c. With you – all the way d. Your POS – Your Bank

50. Name the bank with whom Japan‟ s – Hitachi – Omron Terminal Solutions Corp (HOTS) has tied up to instal next generation ATM across the

country

a. SBI b. Axis Bank c. ICICI Bank

d. Both (a) & (b)

ANSWERS

MULTIPLE CHOICE QUESTIONS ON ATM

1 A 2 B 3 B 4 D 5 D

6 A 7 C 8 D 9 A 10 B

11 B 12 D 13 A 14 D 15 A

16 D 17 D 18 B 19 C 20 D

21 C 22 B 23 C 24 B 25 A

26 C 27 B 28 A 29 B 30 C

31 C 32 C 33 A 34 D 35 A

36 C 37 D 38 A 39 C 40 A

41 D 42 A 43 D 44 C 45 A

46 C 47 B 48 A 49 A 50 A


174

MULTIPLE CHOICE QUESTIONS on Retail Internet Banking

1. Customer can register for RINB facility through

a. Only at Home Branch b. Any branch from the same Region

c. Any branch (or) through INB portal

d. INB portal only

2. PPK is an acronym for

a. Pre-Prepared Kit b. Pre-Processed Kit

c. Pre-Presented Kit d . Pre-Printed Kit

3. A Customer can bring up any internet banking problem to the notice of the Bank by raising a a. Ticket

b. Complaint c. Letter

d. E-mail

4. Which of the following account(s) is/are not eligible for INB facility? a. Minor above 10 years

b. Single Account holder

c. NRE A/c d. Jointly Operated A/c

5. When an existing customer forgets his Profile Password and gives a request for resetting his Profile Password, the branch has to

a. In the Branch interface, go to =Requests = >> =Reissue Login

Password„ b. Send an e-mail to the INB department c. Issue a new PPK

d. In the Branch Interface, go to =Requests„ >> =Reset Profile Password„ & Checker has to approve


175

7. If a INB customer has forgotten the user name and approaches the INB officer with his account number, the INB officer can find the user name by

a. Selecting the link =Find Username„ under = Requests„ b. Taking up the matter with Alternate Channels Department c. Placing a request in Service Desk d. None

8. Fund transfer limit to third party accounts within SBI a. Rs.10 lacs b. Rs. 5 lacs c. Rs. 2 lacs d. None

9. The type of transaction that can be carried out by INB customers is a. Straight Through Processing Transactions b.Manual Intervention Transactions c.Both of the above d.None

10. Which of the following is a manual intervention transaction? a.Request for DD

b.Request for cheque Book c.e-TDR d.Blocking of ATM Card

11. What is the Bank‟s charges for online transactions through Credit Crad (Visa) Bill Pay mode? a.Nil b.Rs.10/- c.Rs.15/- d.Rs.20/-

6. When a customer is enabled for Internet Banking facility, by default, the following rights are provided a. Transaction Rights only

b. View Rights only c. Both of the above

d. None


176

12. Phishing is a. A form of terrorist attack

b. A form of internet piracy

c. An animation software

d. None

13. An INB customer can apply for an Initial Public Offer using

a. Demat

b. Third Party Transfer

c. ASBA

d. None

14. In the website of online banking of SBI, https://www.onlinesbi.com, the letter „s‟ stands for: a. Secure

b. Strong c. State Bank d. None

15. What is the maximum limit under ASBA for individual category of investor in online banking can apply? a. 2,50,000-

b. 2,00,000- c.1,50,000-

d. 1,00,000-

16. For utilising services under SBI-Oxipay for Mobile Top-Up, DTH Recharge.. a. Prior Registration is required

b. Prior Registration not required c. Cannot be done unless authorised by the Branch d. None

17. Term Deposit accounts opened through Online Banking will be opened in the name(s) of a. Any name specified by the user

b. will be same as in debit account from which is is funded c. will be decided by the branch

d. None

https://www.onlinesbi.com/


177

18. What is the cut off time for creating e-TDR / e-STDR online banking? a. 8:00 AM IST to 8:00 PM IST

b. 7:00 AM IST to 7:00 PM IST

c. 24 hrs without any restriction on timing d. None

19. Virtual card is a. a one time use card and can be used online websites that accept any Credit Cards.

b. a one time use card and can be used online websites that accept any VISA Credit Cards.

c. a general purpose card can used for online as well as offline purchases d. None

20. How many persons can jointly open a Savings Bank account under Online Account Opening Process? a. Any number without restriction

b. Only upto three applicants c. Only Single account is allowed d. None

21. A minor wants to open account through online SB Account opening. Is it allowed and what is the procedure? a. A minor aged more than 10 years and can sign uniformly are allowed to open

b. A minor aged more than 11 years and can sign uniformly are allowed to open

c. Minor cannot open account online d.None

22. What is the time limit within which a prospective customer must approach a branch after submitting the information online, for opening of account?

a. within 30 days

b. within 15 days c. within 5 days

d. None


178

23. What is TCRN with respect to SB Online Account opening Process? a. Temporary Customer Registration Number b. Temporary Customer Reference Number c. Transaction CIF Reference Number

d. None

24. What is the site address for accessing ―Online SBI on Mobile‖ ? a. https://mobile.onlinesbi.com

b. https://m.onlinesbi.com

c. onlinesbi.mobile.com d. None

25. How to register for ―Online SBI on Mobile‖ Services? a. Separate registration at the Branch is required

b. No separate registration is required and existing username/password can be used.

c. INB department will send a separate user-id/password d. None

ANSWERS

1 c 2 d 3 a 4 d 5 d

6 b 7 a 8 a 9 c 10 c

11 c 12 b 13 c 14 a 15 b

16 b 17 b 18 a 19 b 20 b

21 a 22 a 23 b 24 b 25 b

https://mobile.onlinesbi.com/

https://m.onlinesbi.com/


179

MULTIPLE CHOICE QUESTIONS on Retail Internet Banking

1. To whom should a customer report in case of receipt of email/SMS or calls over phone requesting for the details of personal information, password

or one time SMS (high security) password related to SBI Online Banking?

a. [email protected]

b. [email protected]

c. [email protected]

d. None

2. What are the recent value additions in RINB ?

a. ATM PIN reset

b. Reduce limit of transactions in POS

c. a & b

d. None of the above.

3. What is the minimum and maximum amount that can be transacted

under SBI Online Banking for fund transfer other than own account?

a. No Minimum No Maximum

b. Re 1/- and Rs.25,00,000/-

c. Re 1/- and Rs.5,00,000/-

d. None 4.What is the minimum and maximum amount of e-TDR / e-STDR that can be

created under SBI Online Banking?

a. Rs.1,000/- and Rs.99,99,999/-

b. Rs.1,000/- and No Maximum

c. Rs.100/- and Rs.25,00,000/-

d. None

5. What is the validity period of e-Card(Virtual Card) created under SBI

Online Banking? a. 48 hours

b. No Time Limit Prescribed

c. Valid for single transaction

d. 48 hours or till the transaction is complete, whichever is earlier.

6. What is the minimum and maximum amount that can be issued under

Virtual Card using SBI Online Banking? a. Min : 100/- and Max : 25,000/-

b. Min : 100/- and Max : 50,000/-

c. No Min and No Maximum

d. None

mailto:[email protected]

mailto:b.%[email protected]



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7. Fund transfer limit to own account through Retail Internet Banking has

been enhanced from Rs 60.00 Lacs to …................................

a. Rs. 7499999/-

b. Rs 200.00 lacs

c. Rs 85.00 Lacs

d. Rs 100.00 Lacs

8. For Linking of PPF or Loan Accounts opened under different CIF to the

existing INB username, the concerned user has to..

a.Give a request to INB department

b. Approach the branch which has given him INB facility

c. Not Possible

d. None

9. For Linking of PPF or Loan Accounts opened under different CIF to the

existing INB username, the INB officer have to select..

a. ―Link PPF/Loan Accounts‖ under ―requests‖ tab in Branch Interface

b. ―Link PPF/Loan Accounts‖ under ―requests‖ tab in user Interface c. Link cannot be done

d. Done

10. To overcome the generic risks (Role or Name specific) and not employee

specific risks, Bank introduced Branch INB interface ID‟ s, which are...

a. Authorised by the concerned Regional Manager

b. PF index based user id„s

c. Branch Specific user id„s d. None

11. For creating Branch users, New Branches should fill the form for user creation provided in the home page of Branch INB interface. The address of

the same is

a. http://www.inb.support.com

b. http://www.inb.intranet.com

c. http://www.onlinesbi.com

d. None

http://www.inb.support.com/

http://www.inb.intranet.com/

http://www.onlinesbi.com/


181

12. In case a RINB user after creation of e-TDR/e-STDR wants a nomination other than the nominee in the debit account, he/she is

required to

a. Send a email to the INB department

b. Visit Home Branch for making the nomination

c. Cannot be changed

d. None

13. A visually challenged customer of your branch requesting for INB had brought two witnesses who were related to him. Will you accede to his

request?

a. Relatives cannot be a party to witness the document b. There is no prohibition in law for a relative of executants to be a witness of document

c. No need for two witness d. None

14. Requests for opening of e-TDR/STD beyond 20:00 HRS IST under SBI

online Banking are scheduled for...

a. Next opening hours if user opts for the same

b. To be given fresh after 08:00 HRS IST on the next day

c. Not possible

d. None

15. When a customer makes request through INB for issue of Draft, the Branch

has to

a. Verify for any ―Unprocessed‖ transactions through Manual Intervention Transaction menu at CBS b. Login in to Branch interface and check for Ticket numbers and clear the request

c. Contact the concerned customer and sort out the issue. d. None

16. SBI‟ s Internet Banking categories are:-

a. Retail INB b. Company INB c. Corporate INB d. Both (a) and (c)


182

17. To prevent somebody from guessing your password and getting unauthorised access to your account your User ID is locked immediately in case

of _____________consecutive wrong password entries.

a. 2 times

b. 3 times

c. 4 times

d. Never unlocked

18. mPassbook enables the user to

a. Offline viewing b. Search Facility with Amount and Date c. Access the content in Hindi & English d. All the above

19. Our SBI‟ s Internet Banking site is certified by:

a. Very Sign

b. TCS

c. Satyam Computers Limited

d. Verisign

20. For extending internet banking facility, Visually Challenged customers are

not required to submit .............

a. Application form

b. Terms of service

c. Additional undertaking

d. None of these.

21. Minor can also be given INB facility with

a. Only viewing Rights

b. View & Transaction Rights

c. Limited Transaction Rights

d. None


183

22. How many times third party funds transfer can be effected in a single day

using SBI Online Banking facility?

a. 3 Times with a ceiling of Rs.5 lakhs

b. Any number of Transactions in a day for amount aggregating Rs.10 lakhs

c. No limit on Transaction

d. None

23. Who acts as the service provider and transfer of funds to the credit account with other participating Bank through NEFT under SBI Online

Banking facility?

a. State Bank of India

b. National Electronic Payment Corporation of India

c. Clearing Corporation of India

d. Reserve Bank of India

24. Which company in association with SBI offers DEMAT A/c and state of

the art online trading product to investors and traders.

a. Motilal Oswal b.SBICAP Securities Limited c. Geojit Caps d. None

25. What is the minimum and maximum amount of denominations a

customer can apply for Gift Card through SBI Online Banking?

a. Rs.500/- and Rs.50000/-

b. Rs.50/- and Rs.50000/-

c. No Min No Max

d. None

ANSWERS

1 b 2 c 3 c 4 a 5 d

6 b 7 b 8 b 9 a 10 b

11 b 12 b 13 b 14 a 15 a

16 d 17 b 18 d 19 d 20 b

21 c 22 b 23 a 24 b 25 a


184

ALTERNATE CHANNELS

MULTIPLE CHOICE QUESTIONS ON CINB

1. Khata, Vyapar and Vistar are the terms associated with

a Retail internet banking

b Corporate internet banking

c RTGS

d NEFT

2.The height of our Corporate Internet Banking is? a Khata (Advantage)

b Khatha (advantage) Plus

c Vyapar (Privilege)

d Vistaar (Freedom)

3.Only Vistaar (Freedom) type of CINB is having this user

a Regulator

b Administrator

c Authoriser

d Cheque Writer

4.Internet Banking Department has developed a generic e payment module named as i-collect for CINB customers for: a. Loan Repayments through CINB

b. Collecting the funds from the receiver of goods/ services c. Forex services for CINB customers d. Tax payments

5.The CINB-Saral user will be able to transfer an amount not exceeding ________ per day to accounts in another branch

…………..

a.Rs.5 lacs b Rs.10 lacs

c.Rs.15 lacs d Rs.20 lacs

6.Which category of branches of SBI can provide CINB facility?

a. Metro Branches b. Semi Urban Branches c. Rural Branches d. All the above


185

7. If approval is done through the ………….. , the activation of the beneficiary in “CINB-Saral” will be instant and cooling period of 5 days and amount cap of `50,000/- will not be applicable.

a Branch b RINB user

c CINB-Saral user d All of these

8. After activation by the system of the new beneficiary in “RINB” and “CINB Saral”, daily one SMS alert regarding beneficiary addition will be

sent to the user during the …………….

a Two day cooling period b Three day cooling period

c Four day cooling period d Five day cooling period

9. CINB can be made available to _________

a. Individual Customers b. Corporate customers

c. Both (a) & (b) d. None of the above

10. Multiple role holders like „Administrator‟ , „Regulator‟ ,‟ Maker‟ and Authoriser are not required for:

a. Khata, Khata plus & Saral b. Vyapaar

c. Vistaar d. None of the above

11. A single user enquiry product meant for small firms or institutions who maintain accounts with only one branch of SBI and who wish to do only

online enquiry and downloading of account statements. Online

Transactions are not allowed in this product.

a. Khata b. Khata Plus c. Saral d. Vyapaar


186

12. A multi-user enquiry product meant for slightly larger firms or institutions banking with multiple branches of SBI. This provides enquiry facility to multiple users of the organization. Online transactions are not

allowed in this product.


13. A simplified single user transactional product ideally suited for sole proprietorship concerns, micro enterprises or individual businessmen who require online transaction facility in their business accounts. Both intra and

interbank transactions are supported


14. CINB Saral product provides transaction rights to the user involving

transfer of funds to own or third party accounts up to a limit of ------ lakhs

per day.

a. 1.00 lac b. 2.00 lacs

c. 2.50 lacs d. 5.00 lacs

15. A multi-user transactional product meant for small and medium enterprises and organisations maintaining accounts with a single branch of SBI and who wish to provide discretionary access/ transaction rights to their

users.

a. Khata b. Khata Plus c. Saral

d. Vyapaar

16. In Vyapaar facility maximum transaction amount of Rs. ____ is allowed per

transaction. There will not be any ceiling on the number of transactions per day.

a. 5.00 lacs b. 10.00 lacs c. 25.00 lacs d. 50.00 lacs


187

17. A complete internet banking suite for large and very large corporates, Government organisations and Institutions. The facility enables multiple users to have discretionary access / transaction rights across accounts with

various branches.

a. Khata b. Khata Plus c. Vistaar d. Vyapaar

18. In Vistaar facility maximum transaction amount of Rs. ____ is allowed per

transaction. There will not be any ceiling on the number of transactions per day.

a. 50.00 crs b. 100.00 crs

c. 250.00 crs d. 500.00 crs

19. Registration form for CINB Vyapaar is

a. C 1 b. C 2 c. C 3

d. C 4

20. Form for Registration for Regulator (Vistaar) is

a. C 1 b. C 2 c. C 3 d. C 4

21. Form for Registration for Administrator for both Vyapaar and Vistaar is

a. C 1 b. C 2 c. C 3 d. C 4


188

a. C1 b. C2 c. C3 d. C4

23. Format for Board Resolution is given in Form

a. C2 b. C3 c. C4 d. C5

24. CINB User Manual form is

a. C3 b. C4 c. C5 d. C6

25. Form for Request for Preprinted Kit for Registration is

a. C 4 b. C 5 c. C 6 d. C 7

26. Form for Acknowledgement of Receipt of PPK is

a. C 5 b. C 6 c. C 7 d. C 8

ANSWERS

MULTIPLE CHOICE QUESTIONS ON CINB

1 B 2 D 3 A 4 B 5 B

6 D 7 A 8 D 9 B 10 A

11 A 12 B 13 C 14 D 15 D

16 D 17 C 18 D 19 A 20 B

21 C 22 D 23 D 24 D 25 D

26 D

22. Terms of service is given in Form.


189

MULTIPLE CHOICE QUESTIONS ON MOBILE BANKING

1. SBI‟s Mobile Banking Service is called:

a. SBI Mobile Banking b. State Bank Freedom

c. MBS d. No such branch name.

2. The approximate cost per transaction to the Bank for

offering Mobile Banking Services is :

a. 1 rupee b. 45 rupees c. 36 Paise

d. 50 Paise

3. The MBS facility can be availed over which of the following

modes?

a. Application Software b. WAP

c. USSD d. SMS Platform e. All the above

4. Expand WAP

a. Wire Application Provider b. Wireless Aerial Provider

c. Wire Applied Protocol d. Wireless Application Protocol

5. Expand USSD

a. Unsupplementary Service Send Data b. Unstructured Supplementary Service Data c. Unstructured Supply of Services Data d. Unblocked Service Supplier Data

6. MBS is available to satisfactory running accounts of

a. P segment SB account holders b. P segment Current account holders c. SME Customers d.All the above


190

7. Transaction rights in MBS is available to

a. P segment SB account holders b. P segment Current account holders c. SME Customers d. All the above

8. The daily and monthly transaction limit in SMS Banking

without One Time Password (OTP) is

a. Rs 50,000/- and Rs 2,50,000 respectively b. Rs 5,000/- and Rs 50,000 respectively c. Rs 1,000/- and Rs 5,000 respectively d. Rs 5000/- and Rs 25,000 respectively

9. The enhanced daily and monthly transaction limit in SMS

Banking with OTP (One Time Password) is


10. In our Bank, the daily and monthly transaction limit in

Application based Mobile Banking is


11. The message to be sent to get User ID & MPIN is :

a. SMS < MBS> b. SMS< MOBLE BANKING> c. SMS <MBSREG> d. Can be obtained from the Branch

12. The length User ID is :

a. 6 characters. It can be numeric/ alpha numeric / special characters / combination of all these

b. 6 characters – First three Alpha & Last three Numeric c. 4 Numerals

d. 4 Alphabets


191

13. How many characters should MPIN have?

a. 6 digits b. 6 characters – First three Alpha & Last three Numeric c. 6 Numericals

d. 6 Alphabets

14. In Mobile Banking Service on SMS, OTP will be advised to user

through

a. Bank„s Contact Centre (IVR) b. SMS

c. Both (A) & (B) d. None of these

15. Maximum number of accounts that can be linked with MBS for

P segment and Non P segment customers are

a. 5 and 1 b. 5 and 5

c. 1 and 1 d. Any number of accounts

16. To exercise control over the registrations/ de-registrations for MBS, checking of ………………….. report of MBS

registration/ de-registration at the branches is introduced.

a. Daily b. Weekly

c. Fortnightly d. Monthly

17. A new link for SBI freedom registration/de- registration/re-

registration forgot MPIN has been provided under …................ tab in post login section of RINB

a. e-Government b. e-mobile c. e-Services d. None of these

18. In application based MBS transactions can be done through

_______facility. a. SMS only b. GPRS only c. SMS or GPRS d. None of these


192

19. MBS over WAP – available on ________________ mobile phones

a. Java enabled b. Non java enabled c. Both d. (Java/non java) with GPRS Connectivity.

20. It is a virtual prepaid account accessible over mobile phones enabled with a mobile based application which allows its users/ subscribers to make payments to any designated affiliates / appointed network of

merchants. State Bank has named this product as

a. State Bank Cash b. State Bank MobiCash„. c. SBI Mobile Cash

d. Virtual Cash

21. MBS transactions are secured by end to end __________ bits AES

encryption

a. 128 b. 246

c. 158 d. 120

22. If the mobile phone is non java and do not have GPRS connection, Mobile

Banking Service can be availed over_________

a. USSD or over SMS Banking b. Application based

c. WAP d. Cannot use MBS

23. How much approximate memory space is required to install the mobile

banking application?

a. 500KB of free memory space b. 50 KB of free memory space

c. 250 KB of free memory space d. 200 KB of free memory space


193

24. SBI has tied up with___________ to enable payment through Mobile Banking

for purchase of goods/services over 3000 or more websites.

a. PAY SITE b. PAYMATE

c. Oxygen d. NPCI

25. What is the address of the site for accessing mobile banking over

WAP?

a. www.onlinesbi.com b. www.sbi.com

c. http://mobile.prepaidsbi.com/sbiwap/ d. No such facility available

26. MBS over WAP requires User ID, _____________ and _________ to do

any transaction.

a. MPIN and WAP login ID b. Password and MPIN

c. Password and special login ID d. No ID required

27. The WAP login id received is valid for _____ minutes.

a. 15 b. 10 c. 5 d. 20

28. Expand - IMPS

a. Instant Mobile payment Service b. Interbank Mobile Payment Service

c. Intrabank Mobile Payment Service d. Immediate Payment Service

29. Expand - MMID

a. Mobile Money Identifier b. Mobile Make Identifier

c. Money Mobile Information d. Mobile Money Information


194

a. 6 b. 5

c. 7 d. 8

31. In MMID the first ______digits identify the ______and the last

________digits identify the ___________

a. 4; Bank; 4; Account

b. 4; Branch 3; Account

c. 4; Bank; 3; Account

d. 3; Account; 4; Bank

32. The facility of IMPS is developed and operated by _____________ in which most of the banks are members among which funds can be

transferred.

a. ICICI b. RBI c. SBI d. NPCI

33. MMID is not _________ specific but it is _________ Specific

a. CIF & Account b. Account & CIF

c. Neither CIF nor Account d. Module & Account

34. MBS facility is mandatory to ________money through IMPS and not

mandatory to ___________ money

a. Send & Receive b. Receive & Receive

c. MBS Not at all mandatory d. Both are mandatory

35. The Maximum amount that can be transferred using IMPS facility is

a. 1000 b. 10000

c. 100000 d. Same as that of MBS

30. MMID has _________number of digits


195

a. Check that the correct time zone for India is set as GMT+5.30 in your mobile settings b. Ensure that time is correct (am/pm).

c. Ensure that the date is correct. d. the problem still persists, the user has to synchronize his mobile banking application. e. Check all the above

37. How to download the MBS application in the android based mobile

handset?

a. Get it from the Branches b. Download it from the sbi site

c. Download it from Android market d. Can not be downloaded

38. The most important steps that are to be completed after getting User ID and

Default MPIN are

a. Change the Default MPIN and then Register for MBS b. Register for MBS and then change the MPIN c. No need to change the MPIN

d. No further registration is required

39. A Mini statement in MBS facility gives_____number of transactions

a. Last 10 transactions b. Last 5 transactions

c. Last 15 transactions d. Last 3 transactions

40. Three wrong MPIN entries __________ MBS for a day and two

consecutive blockage ____________the customer

a. Blocks & de-registers b. De-registers & Blocks

c. Only Blocks for three days d. De-registers permanently

36. Synchronization error in Mobile Banking can be rectified by


196

41. MBS facility cannot be given for ________operated account

a. E or S b. Joint

c. Any one or Survivors d. Self

42. SMS to get MBS ID and Password is _____________.

a. 9442330000 b. 9223440000

c. 9444430000 d. 9332440000

43. The Catch line of SB Freedom is

a. Your Account Your Mobile b. Your Mobile Your Bank

c. Your Bank Your Mobile d. Our Bank Your Mobile

44. The Simple way to get MPIN when forgotten is

a. SMS – SFPIN <space> ID to 9223440000 for all channels b. SMS facility is available only for SMS Banking c. Only option is to choose from the menu ― forgot MPIN‖ d. Different for different channels

45. For all new MBS registration the mobile number available at the

______level is validated

a. Account b. Mobile number given in the application c. CIF d. Primary Account

46. A new link “State Bank Freedom” has been provided under e-services

tab in post login section of RINB to make available

of ............................ process of mobile banking services.

a. Registration b. De-registration

c. Validation after using option“Forgot MPIN” d. All of these


197

50. For accepting Terms and Conditions of the SMS Service, which are available over

Bank‟s website www.sbi.co.in

a. <Saccept><UserId><Mpin>

b. <userid><mpin>

c. <mpin>

d. no terms and conditions

47. To infuse more security into the registration process we have

initiated steps to introduce _______________in CBS

48. What is the key word in SMS Banking in case you forget MPin

49. State Bank has tie up with _______ for Mobile Top up and Dth

Recharge

1 b 2 a 3 e 4 d 5 b

6 d 7 d 8 c 9 d 10 a

11 c 12 b 13 a 14 c 15 a

16 a 17 c 18 c 19 d 20 b

21 a 22 a 23 d 24 b 25 c

26 a 27 b 28 d 29 a 30 c

31 c 32 d 33 a 34 a 35 d

36 e 37 c 38 a 39 b 40 a

41 b 42 b 43 b 44 a 45 c

46 d 47 b 48 d 49 c 50 a

a. ―Checker b. ―Maker-Checker c. ―Maker

d. No such steps registration and de-registrations has to be checked from SBI Times

a. Paymate b. NPCI c. Oxigen d. Pay site

a. < User ID> b. <Forgot Pin> c. <SFpin>

d<Sfpin> <User ID>

ANSWERS

http://www.sbi.co.in/


198

a. QMS

b. Grahak Mitra

6. What is the maximum amount that can be loaded in State Bank Buddy?

c. Branch Choreography

a. Rs.5000 per month b. Rs.10000 per month c. . Rs.20000 per month d. No such restrictions

a. Customer‟s Experience in current visit

1. Which one of the following is not a part of CEEP? NEW INITIATIVES

d. CMS

2. NPS (Net Promoter Score) in CEEP represents

b. Customers who are likely to recommend SBI

c. Feedback score given for a particular transaction

d. Score given to the BM for effective implementation of CEEP

3. CEEP is rolled-out at CPCs for smooth process workflow from

submission to sanction & disbursement in

a. Education Loans

b. CGTMSE Loans

c. Home Loans

d. None

4.What is the name of mobile e-wallet launched by SBI?

a. Buddy

b. Lime

c. Swayam

d. SBI e-Cash

5. Which of the following is not the function available in SBI e-wallet?

a. Ask/Send Money

b. Recharge and Pay Bills

c. Online shopping

d. Cash withdrawal through ATM


mailto:b.%[email protected]



199

7. In how many languages State Bank Buddy is available

a. 12

b. 13

c. 14

d. 10

8. What is the name of the first Digital Banking Branch launched by SBI a. sbiINTOUCH Privilege

b. sbiINTOUCH Premium

c. sbiINTOUCH Platinum

d. sbiINTOUCH Power

9. Which of the following Kiosk is not available at the Digital Banking Branch

a. SWAYAM Kiosk

b. Account Opening Kiosk c. Debit Card Printing Kiosk

d. Internet Banking Kiosk

10. What is the time norm for opening SB account and printing of Debit Cards

in Digital Banking Branch

a. 10 mins

b. 15 mins

c. 20 mins d. 12 mins

11. Unique feature of Digital Banking branch

a. Instant Account Opening along with print of ATM-cum-Debit Card

b Smart Table & Dream Wall

c. Functions 365/366 days

d. All the above


200

12. What is the software used at Digital Banking Branches to gather

and monitor customer business leads

a. LMS

b. CRM

c. LOS

d. CMS

13. How many sbiINTOUCH Premium branches are there

a. 6 b. 7

c. 14 d. 8

14. In Tech Learning Centres (TLC) when the workshop will be conducted for

customers

a. 3rd Friday of each month at 4 pm

b. 15th of each month at 5 pm

c. 10th & 20th of each month at 4 pm

d. On any given date

15. How many TLC are operational across the country?

a. 385

b. 485

c. 500 d. 250

16. Details of TLC are available for public access in

a. Retail INB b. LHO c. Bank‟s Web Site d. Online SBI


201

17. State Bank Secure OTP will work in

a. Only in Online Mode

b. Both Online & Offline mode

c. Only in Offline Mode

d. SIM Mode

18. Which type of user can use the Secure OTP option

a. Transaction Rights b. Enquiry Rights c. ADMIN Rights d. Any Rights

19. What is feature of State Bank mCASH?

a. Sending small amount to third parties through INB without registering them in INB

b. Money can be send by picking up mobile no or e-mail ID

c. Claiming sent money through mCASH mobile APP

d. All the above

20. What is the transaction limit for sending money through mCASH

a. Rs.2000

b. Rs.1000

c. Rs.5000

d. Rs.10000

21. Transaction charges for customers in mCASH

a. Rs.2.50 per transaction

b. Rs.1.00 per transaction

c. Rs.1.50 per transaction

d. NIL


202

22. What is SAMADHAAN

a. Scheme launched for one time settlement for Car Loan

b. Mobile App for public to know about product info, Interest Rate etc.,

c. New variant of CINB

d. Collateral free SME loan product

23. What is the name of recently launched ATM-cum-Debit card?

a. sbiINTOUCH Tap & Go Card

b. SBI Contactless Card

c. SBI Chip & Go Card

d. sbiINTOUCH Premium Card

24. What is the technology used in the newly launched ATM-cum-Debit

Card?

a. Secured wifi communication b. Near Field Communication c. Encrypted communication d. Digital Communication

25. What is the transaction limit for Tap & Go card by using NFC?

a. Rs.1000

b. Rs.2000

c. Rs.5000

d. Rs.40000

ANSWERS

1 d 2 b 3 c 4 a 5 d

6 b 7 b 8 b 9 a 10 b

11 d 12 b 13 b 14 a 15 a

16 d 17 b 18 d 19 d 20 b

21 a 22 b 23 a 24 b 25 b


203

RATIONALES

Technology

Cash@POS introduced

To allow more cash points and greater customer convenience

It is additional opportunities to earn income by the merchant

To enable the customer to obtain cash by safe and

convenient way

To activate of our Debit cards and more usage of cards at POS

User Driven Registration for Internet Banking (URIB)

In order to overcome the limitations of handing over the PPK kits either at the branch or on

account of postal dispatch may fall in the wrong hands which may lead to perpetration of the

frauds

In view of demands from customers to have more customer friendly modalities

Alternate Channel is need of the hour

Several alternate delivery channels such as ATM, Mobile banking, Internet banking, CDM,

SSK etc. will provide customer satisfaction and convenience

It will decrease the crowd at the counter and give free time to branch operative staff to sell

and market products

It will help our bank to retain undisputed leadership in India and compete effectively with

new forces of the market

To declutter the branches

Data Warehousing and Data Mining are the important IT initiatives

It seeks to centralize a variety of data and data mining attempts to dig into the data.

Its goal is to find out patterns of customer behaviour

It helps in designing new products and cross- selling products

It strength the Customer Relationship Management - CRM

SBI entered into Merchant Acquiring Business (M A B)

Cashless transactions enabled are convenient and delightful for customers as well as

merchants.

To bring in substantial earnings in the form of Merchant Discount Rate (MDR), float funds for

the Bank

Loan Origination Software introduced in the Bank

Automation of our Loan process from Branch to CPC‟s

Better monitoring of the status of the proposals

Leveraging technology

The processing of loans through LOS not only helps in risk mitigation but a proper record is

also maintained in the system for future needs


204

Branch should market the PRE PAID CARDS

Interest free funds as floating funds

Low transaction/operational cost

Inter-change fee on POS transactions

Breakage (balances lying in the inoperative cards and never withdrawn)

Customer Retention Strategy/One Stop Shop

SBI introduced SMEIDC for Non-Personal Customers

To provide hassle free banking facility to SME Customers

To enable the Bank to market our liability products to all the customers of SME segment

To save on resources deployed in cash receipts at the branch so that such resources can be

utilized for value added services to customers

Transactions carried out through this card do not require / generate any Vouchers, hence

there is no pressure on the operating staff at the branches for VVR checking

Mobile Banking services has been introduced in the bank

Increasing growth in mobile phones

Convenience Banking

Alternate channel for rendering banking services to young and techno savvy customers

Cost effective, Simple, Secure, and User friendly

Any time Any where banking

RBI guidelines

State Bank Virtual Card is available in Internet Banking

To provide an easy and secure way of transacting online without providing the Primary Card/

Account information to the merchant.

For Efficient funds management.

To Increases customer loyalty / confidence

SBI is promoting Green Remit Card [GRC] in big way

To Enable non customers also to be part of SBI‟s Financial Inclusion drive and reap the

benefit of technology available in SBI.

To Enable Enhanced Customer satisfaction being quick, user friendly, and also with a human

touch.

To use Effectively GCC & CDM machines at the branches.

To provide customer convenience

An eco-friendly Green initiative reaching to more people, adding cleanliness to the

environment


205

Branches Should migrate the customer to GCC

To encourage inactive Card holders to use Debit Cards in alternate channels viz. ATM, POS,

etc. by hand holding them in branch environment.

To provide customer convenience;

To Save paper/ cheque leaves/withdrawal forms.

Enables Enhanced Customer satisfaction being quick, user friendly, and also with a human

intervention.

An eco-friendly Green initiative reaching to more people, adding cleanliness to the

environment.

An innovative step taken by the Bank towards changing traditional way of paper based

banking to card based „Green Banking‟ focusing on reduction in paper usage as well as

saving transaction time

SBI is introducing CASH RECYCLERS - “STATEBANK CASH POINT”

To ensure proper utilization of capital expenditure

To decongest the branches and enable customers to deposit cash 24x7 in more locations

To leverage the technology

Internet banking facility is extended to customers in a big way

An alternative channel of delivery of products and services

Cost effective and reducing transaction cost

A boon for young generation and tech savvy customers

Helps in competing with private and foreign, tech savvy banks

SBI Introduced Online Account application facility for Opening NRE/NRO

This shall facilitate easy online facility for prospective NRI customers

The customer will have the option of choosing the branch for opening his / her account and

based on this choice he/she will be advised to courier documents to the mapped LCPC

The applicant need not visit the branch in India for submission of the application form

SBI QUICK a missed call banking introduced by our Bank

To be line with major transformation which is happening in Electronic Banking

To gain a competitive edge over competitors in introducing processes and technologies

To leverage technology to achieve customer delight

To provide convenience to the customer


206

Blocking of ATM cards through Branch Interface of Internet Banking and customer interface has been

enabled

To offer one more platform for blocking ATM Card in a quick way in the event of its loss

As many customers have not availed online banking facility they need to block the

lost/stolen card by calling up contact centre or by approaching branch. Since the toll free

lines of contact centre are mostly busy, calling up contact centre for blocking of ATM card

becomes inconvenient to customers

Delayed reporting is also fraught with risk. In case the customer approaches a branch, the

branch blocks the card by calling contact centre/ lodging service desk request, which may

also cause some delay

Bank has implemented Active Directory Service (ADS)

To protect the Bank‟s network and to provide centralized control over users and IT

resources of the Bank

As per Bank‟s IS Policy

Bank has implementing CBS Roopantar project

To improve the functionality of CBS both in terms of look and feel of the screen as well as

the processes

To give comfort to the tellers in CBS with rich features

To improve the Teller Experience and also improve the frontline delivery

To improve customer service and quick service

STATE BANK ANYWHERE for CINB customers introduced

To provide Mobile Banking facilities to our large corporate customers using CINB

To migrate the high value corporate transactions onto Mobile Banking

To help the Bank in increasing the average ticket size of Mobile Banking transactions

To improve customer convenience

SBI introduced NRI family card

To meet the payment needs of the family member or dependent or beneficiary or any

acquaintance of NRIs in India

To provide convenience to NRIs for inward remittance

To have an effective alternate means for the NRIs for sending remittances to their family

members.

State Bank Buddy – Introduced by our Bank

To provide superior experience to our customers

To be part of Digital India initiative

To achieve true financial inclusion in the country

To introduce a digital payments channel for our existing as well as non-SBI customers to

make a cashless economy

To unlock the full potential of mobile wallets for our users


207

Our Bank is installing Barcode based passbook printing Kiosks (SWAYAM) at its Various Branches

For de-cluttering the branch

To provide customers convenience

To encourage self service banking

Telebanking Service has been introduced

It is one of the alternate channels that provide customer service with human assistance

To de-clutter the branch

To leverage the Technology

To provide efficient and productive customer service through Technology platform

The scope of State Bank Freedom Rewardz is enlarged

A Enterprise Wide Loyalty Programme to reward the customers for performing various types

of banking transactions with the Bank

To incentivized the customers for carrying out the transactions across all major channels

To give the customers several opportunities to earn Reward Points

Bank is opening Digital iNTOUCH branches

To bring the youth (GEN Y) into the folds of SBI as a priority customer-segment.

To enables the Bank with new methods of interaction and service delivery

To augment the customer experience and potentially transform the business with digital

infrastructure

It is a self-service banking outlet, equipped with state-of-the-art gadgets / machines to attract

the younger generation

Online VVR checking is important aspect in Operational Risk Management

To identify and eliminate the losses occurring on account of frauds

To leverage the technology for back-office processes

As part of Risk Mitigation process in ORM

Submission of Digital Life Certificate is enabled through JEEVAN PRAMAAN

To be part of Digital India initiative

Aadhaar based Digital Life Certificate for pensioners is to provide convenience for the

pensioners.

As per RBI / Government guidelines


208

SBI is active in Social Media

It plays a major role in communication and sharing of information

To attract the Gen “Y” customers to bring into our business fold

To face the completive environment through technology platform

SBI Launches “State Bank Samadhaan”- A Self Service Mobile App

To enable SBI customers to avail a range of services and obtain commonly sought

information without visiting the branch

It gives direct access to various mobile apps like State Bank Buddy, State Bank Freedom, SBI

Quick

It facilitate the customer to have wide range of services through ONLINE

To enhance the customer delight

Knowledge Help Line has been introduced in our Bank

KHL has been designed with a view to help employees of the Bank to clarify their doubts

It will be helpful for operational staff to provide better customer service by way of effective

delivery by gaining knowledge through KHL

General

Bank has redesignated Clerical cadre employees as Associates

To give contemporary job title based on the nature of the roles

To enhance the job satisfaction and pride in one‟s own job

To reflect the core element of responsibility assigned to them

Bank is giving importance to use e-learning courses

It is difficult to spare staff members from branches for training.

Staff members can learn at their convenience

They can take up courses relevant to them and pursue them

Reduces cost for the bank

WBCAS introduced in our Bank

To improve both the coverage and quality of Audit

To have a real time audit at the branch

As per Govt of India instructions on Concurrent Audit systems

Bank has introduced e-KYC

To reduce the risk of identity fraud, document forgery

To have paperless KYC verification

As per RBI guidelines to permit acceptance of e-KYC service as a valid process for KYC

verification under Prevention of Money Laundering (Maintenance of Records) Rules, 2005


209

Password security plays a major role in Bank‟s Information Security (IS) policy

Password security protects bank and safe us from future loss and misuse by fraudsters

The sensitive information can be used by unscrupulous elements for own vested interest.

Fraud committed can cause loss to individual, organization

More than that it can cause reputation loss for the organization

Complaint Management System (CMS) introduced

Early resolution of complaints within the stipulated period and avoid payment of

compensation

Complaint can be lodged at all branches as well as through contact centre

Easy monitoring of complaint resolution at various levels

Customers can also keep track of their complaint resolution

In Recent days, Operational risk has gained importance

It is as per Basel guidelines

Due to significant growth in the banking transaction there is increase in operational risk e.g.

Inadequate/failed internal processes, people, system etc

To strengthen the soundness and stability of system

It is an important component of risk management system

In the stock audit report, auditors observations are critical

Sharing of observations will enable to initiate suitable steps for rectification

The scope of conducting Stock Audit has been enlarged

As a measure of Credit Risk Management

Bank has implementing CEEP (CUSTOMER SERVICE EXCELLENCE PROJECT) at its Branches

To understand their customers‟ expectations and redesign the service delivery system to

achieve customer service excellence

To improve the existing Service Delivery Process with new concepts

To aim at minimizing the Waiting and Processing time for each customer

It is a Bank‟s TRANSFORMATION INITIATIVES

Project Saksham Launched in our Bank

To Increase the business orientation through business linked KRAs.

To have an IT enabled performance evaluation system without manual intervention

To implement Standardization of KRAs across officers/ clerical staff in the same role


210

Forex Outward Remittance „fxout‟ has been introduced

To leverage the wide network of our branches and facilitate customers of SBI to effect

foreign remittance from any branch.

To have a System driven calculations with Centralized Processing at GMU-K

To have a Single point contact for at GMU-K for all queries

Penalty provision has been introduced in RFIA for false / delayed compliance of OTMS alerts

To discourage branches from submitting false / delayed compliance to OTMS alerts

To strengthen the Internal control systems

Relationship Banking is gaining importance now

To build up close rapport and understanding with the customers.

Enable us to anticipate the needs of the customer well in advance and to meet them.

To meet the competition from the other players in the market

Consent of guarantor is necessary to re-phase term loan instalments

Rephasement of term loan installments is a material change and as such requires the

consent of the guarantor‟s per Section 133 of Indian Contract Act.

Otherwise, guarantor will be relieved of his liability

CRA system is vital for lending bankers

As per the Bank‟s Loan Policy, it is mandatory for the loan amount Rs.25 lacs and above.

It is used as a tool to assess the credit risk of the borrower / unit / facility

This is as per RBI directives

On the death of a partner, it is advisable to stop operation in the cash credit account of the firm.

The subsequent credit will go to set off the debit balance

Subsequent debits will not bind the estate of the deceased

Rules in Clayton‟s case will apply

Documents must be completely filled in before execution

Incomplete documents are un enforceable in law

They will not serve as full agreements of the borrowers

The interest of the Bank will not be protected if the borrower contends

Banks are prohibited from crediting „account payee‟ cheques to the account of any person other than

the payee named therein

As per RBI directives

To prevent misuse of banking channels by unscrupulous persons posing to be the true

owners of cheques and defrauding Banks


211

Bank has advised stoppage of financial transactions on the basis of e-mails both in NRI and non-NRI

customers

To prevent possibilities of fraudsters using fake scanned attachments in the accounts of NRI/

Non-NRI customers by hacking their e-mail accounts.

Collusion of NRI customers with unscrupulous persons for defrauding the Bank cannot be

ruled out

Non-Payment Advice for issue of Duplicate IOI draft has been dispensed with

The payment status of an IOI Draft i.e., whether already paid or outstanding, can be viewed in

CBS by the issuing branch

To enable the customer to receive the duplicate IOI without delay from the Bank

Maker / Checker functionalities for transaction beyond the threshold limit of Rs.10 lacs has been

revised

Transactions undertaken by a teller of capability 7 and above are not subjected to maker-

checker concept. This is fraught with risk

To avoid the chances of any fraudulent transaction by the single officer

To mitigate this particular risk and to prevent the misuse of unlimited passing power

available to the supervising official having capability level of 7 and above

All correspondence emanating from any Branch/Office/Department should carry the name of the

signatory to the communication and contact details in addition to designation.

RBI directives

To facilitate the receiver of the communication to have an easy access for further follow up in

the matter

Restrictions on Inter core transactions has been revised

To ensure against misuse of inter core transactions by unscrupulous persons

To exercise caution in the transactions passing through small branches where there is only

one officer and one clerk

Branches maintaining Parking Accounts will set a sweep in CBS to transfer any end-of-day clear

balance in Parking Account to Branch Sundry Deposit Account – Others (a reconcilable BGL)

For better monitoring and control over the transactions passing through the Parking

Account

To prevent misuse of internal accounts by unscrupulous staff members


212

All cheques of Rs. 1cr and above are required to be passed physically by 2 officials at all CCPCs and

Branches.”

The passing officials are required to take adequate due diligence while passing such

cheques, which includes referring to the drawee branch, drawer of the cheques and account

status of the payee at payee‟s branch and their KYC status

During the meeting of Executives on High Value Frauds held on 19.06.2013 serious concern

was shown on recurrence of such high value frauds and it was decided to put a restriction

on the passing of cheques at CCPCs/Branches

Direct Rate method of quotation is followed in India

It is easy to understand the exchange rate

Calculation are relatively simple and therefore quick

Relative rates for various currencies can be easily compared

In RFIA, penalty is being imposed for false compliance

Provision of deduction of marks will act as deterrent to false compliance

To enable the branches to rectify the irregularities pointed out in the audit report in effective

manner

To strengthen the Internal control system

In RFIA, Incentive for early closure of Audit Reports has been introduced

To promote compliance culture

To reduce the average closure time of Audit Report

To improve the quality of compliance


Bank launched a Savings Bank Accounts Opening Campaign, named „Bachat Tara‟

To increase the healthy CASA deposit which is a vital ingredient necessary for high

profitability for a Bank

To encourage the staff members to open the accounts for their friends and family

In RFIA, Bank has revised the periodicity for submission of compliance remarks by Branches /

controllers

To provide adequate time to branches for carrying out rectification of irregularities

To facilitate timely submission of compliance remarks



213

RTI Query Management and tracking system (RTI-QM & TS Software) has been implemented in our

Bank

To monitor the present status of application

To avoid the delays and errors in reply after collating data from various offices

For proper analysis of disposal of applications, reason for rejections and compliance of

CPIOs

There is no Account in the General ledger showing balance of the currency chest at the Branch

The currency chest is the property of Reserve Bank of India

SBI is maintaining the currency chest in the capacity of bailee

Risk Management concept is getting importance in Bank

To have an effective risk mitigation measures to contain the level of risk

To have an risk management architecture and expertise for identification, measurement,

monitoring and controlling of risks

It is an on-going process of analyzing exposure of risk and determine the corresponding

mitigation measure

As per RBI guidelines on risk management

Nominee‟s signature is not obtained on the nomination form

Accountholder may not be inclined to let the nominee be aware of the fact of nomination

To facilitate smooth change of nomination by the accountholder in future, if he/she so

desires

Partnership letter (COS-37) is obtained in case of opening an account in the name of a Partnership

Firm. Why?

Through Partnership Letter, the Partners undertake to notify the Bank of any change in their

constitution

Moreover, It gives the firm an implied authority to open an account

In the case of demand loan products, further withdrawals are not permitted.

Additional debits except interest and Bank charges will not be covered by Demand

Promissory Note furnished by the borrower

Moreover, any credit in the account will reduce the value of DP Note to that extent

LTV ratio introduced for Housing Loans

To increase the safety margin for the Bank

To minimize loss due to defaults and to prevent slippages

As per RBI Guidelines


214

ADVANCES

Bank encourages usage of Kisan Credit Card facility

To facilitate adequate and timely flow of credit to farmers

To provide flexibility to the borrowers in acquiring various agricultural inputs

To relieve the Bank official of routine renewal of crop loans every year and instead to be

done only once in 3 years(Caution: Review has to be done every year)

Bank plan to improve Credit Skills of the staff

To develop credit skills for efficient handling of the entire Loan Life Cycle

To focus on credit capabilities of the staff

To develop the desired specialized skills in the area of credit

To mitigate the operational risk arising due to lack of adequate credit skills

No Interest is applied on NPA accounts

NPA account ceases to generate the income for the Bank

As per RBI directive on IRAC Norms Interest is to be reckoned on realization basis not on

accrual basis

Bank has to pay taxes on the artificial profit if interest is applied

Krishi Kalyan Scheme has been introduced

To afford timely credit to farmer both for farming activity as well as for loan against stocks

kept in his own house/ godown or at ware houses.

To reduce multiple processing of applications, documentation, EM creation etc. separately

for KCC and Produce Marketing Loans and making available timely credit to the farmer

Produce Marketing Loan (PML) has been introduced

To help farmers avoid distress sale of their produce

To enable prompt repayment of crop loan dues

To provide liquidity to farmers to meet contingency needs.

To offer the facility of loan against the stocks stored in farm houses, in addition to loan

against warehouse receipts.

Bank has introduced New Tractor Loan product named TATKAL (MORTGAGE FREE) TRACTOR LOAN

(TTL)

To improve our market share in tractor finance

To facilitate prompt loan delivery to High Net Worth farmers who otherwise purchases tractor

on cash

It is a Hassle free tractor loan , Mortgage free


215

Revised KCC has been implemented

To meet the short term credit requirements for cultivation of crops

Consumption requirements of farmer household

Working capital for maintenance of farm assets and activities allied to agriculture, like dairy

animals, inland fishery etc.

Post harvest expenses

Investment credit requirement for agriculture and allied activities like pump sets, sprayers,

dairy animals etc

Inspection to agriculture should be farmer-oriented and not farm oriented.

The purpose of the inspection is not only to verify the security charged to the Bank, but also

to develop liaison with the farmers and also to provide necessary guidance in respect of

modern techniques of Agriculture and allied activities.

To understand their problems, credit requirements and repayment capacity.

To ensure better supervision; follow up, recovery and revival.

Bank has launched GPL CHAMPIONSHIP 2015 (Gold loan Premier League Championship 2015) in AGRI

segment

To inculcate healthy competition spirit to promote and facilitate penetration of agri gold loan

products to all RUSU branches.

To encourage and recognize the Bank staff in promoting colllaterised lending.

To promote agri gold loan product to 100% of eligible RUSU branches.

To ensure No Zero Agri gold loan branches in the bank

BCs/ CSP have been engaged by Banks

To implement Financial Inclusion in a cost effective manner

To leverage the technology in extending the Banking / Financial services to rural and interior

areas

To ensure greater financial inclusion and increasing the outreach of the banking sector

As per GOVT / RBI Guidelines

RBI stresses on IT enabled financial inclusion

Banking outreach the remote corners of the country can be achieved through IT enabled

financial inclusion

By use of appropriate technology transaction cost for the bank can be brought down

Bio metric ATMs, General Credit Cards etc. are important new moves towards IT enabled

financial inclusion


216

Working Capital limits are to be renewed every year

These are short term loans sanctioned for a period of 12 months.

To ensure that the operations are in conformity with the projections.

To assess the need based limits.

To avert the dangers of over financing / under financing. Pursuant to Sec 33 of SBI ACT

1955, working capital advances are granted for a period not exceeding 12 months

SBI has offered special concession in Home Loan Interest rates to our women borrowers

To support the Government initiative for women empowerment

As a token of respect for the working women and to tap this rising business segment

Take over norms are made more stringent by the Bank

Problem Accounts get taken over as the transferor bank does not provide true and vital

information about the account when called for

Unscrupulous borrowers take advantage of the competition among the Banks

Retail Scoring Models are introduced in Personal Banking Advances

The Scoring Model serves as a credit decision making tool to strengthen the existing system

of appraising loan applications.

Gives clear picture about financial discipline & repayment capacity of the applicant

Form „A‟ has to be sent by post by the borrower / guarantor a day after the creation of Equitable

mortgage

Form A serves as a confirmation of the fact of the Borrower / Guarantor having created the

EM

It is also serve as an evidence that the EM was created without any coercion

Otherwise it will attract stamp duty

Review/ Renewal exercise is taken up in the case of Term loan and Working Capital advances

Review / Renewal exercise helps the bank to assess the actual need based credit

requirement of the unit

It is a credit monitoring exercise to ensure financial discipline and end use of the Bank

Credit

It helps in the maintaining the quality of assets portfolio

A component for consumption credit is included in Kisan Credit Card limit

To carry on farming activity, a farmer has to necessarily incur expenses towards

consumption needs. If finance is not provided to him for these purposes, there may be a

tendency for him to divert some of the loan amount towards these expenses, or approach

private financiers. In either case, our loan repayment is at risk.

To prevent our advance from going bad, and to provide the farmer with a viable alternative


217

Agriculture finance is a supervised credit

It has to be closely followed up for the end use for the mutual benefit of borrower and

banker

The approach should be farmer oriented rather than farm oriented.

It has been decided to obtain PDCs for loans beyond Rs.2.00 lacs sanctioned under ATL & Govt

sponsored schemes

This step will improve financial discipline among the borrowers and improve the recovery

performance

The Bank has an option to initiate criminal proceedings against the default borrower

Banks lend more under Self Help Groups

This creates self-employment to the rural people leading to rural development

More women are forming SHGs and by linking groups, women empowerment is achieved

Default level is very low in SHG advances and the chances of the accounts becoming is NPA

is very low.

KRISHAK UTHAAN YOJNA Scheme has been introduced

To provide hassle free credit facility for the persons who unable to provide any documentary

evidence

To provide credit for purchase of various inputs for crop cultivation and to meet the

consumption needs

GRIHA TARA HOME LOAN contest for all staff members launched

To have an aggressive Marketing and quick & timely delivery in the thrust area of Home Loan

To compensate the decline in walk-in business of Home loan portfolio

To intensify our marketing efforts through our Staff Members

Banks should Endeavour to link loan/ interest with Aadhaar card of the particular borrower / individual

in education loan

To track the students for future repayment of loan when it becomes due

To prevent NPAs in Educational Loan

Statement of Book debts with Age wise break-up is obtained along with the stock statement

To assess the correct drawing power

To identify the eligible book debts included in cover period as per sanction Note


218

Insurance policies need to be obtained in the joint names of the borrower and the bank or with the

Bank‟s Hypothecation clause noted in the Policy

To protect Bank‟s interest

To ensure the settlement of claims paid into the account maintained with the Bank if the

event of any claim raised by the borrower

“No due Certificate” from individual borrower in Rural & semi urban areas as been dispensed with

To comply with RBI guidelines

To provide hassle free credit to borrower

Bank have alternate option to verify the past track record through recent technology

developments

SBI - Top up Home loan scheme modified

To tap the potential to grant additional loans by way of top-up loans to the existing Home

Loan borrowers

To push growth under Top-up Loan portfolio

Policy for monitoring of standard Assets has been Introduces

To comply with RBI guidelines

Early identification of financial stress to take corrective action

Periodical stock Audit is conducted in High value advances account

To mitigate the risk

To assess the quality, quantity and value of the current assets

To take necessary corrective steps to avoid account become NPA

To strengthen the post sanction mechanism

ABL scheme has been introduced by our Bank

The Previous scheme is not meeting the requirement of the borrowers who need running

account facility.

With the comfort of adequate margin on realizable value of property offered as collateral, the

product has been structured with liberalized terms and easy assessment.

The customer friendly facility by way of overdraft with Monthly Limit Reduction Programme


219

How is e-DFS different from traditional CC limit?

It is a scheme to provide need based finance to dealers for their purchases from the Industry

Majors (Corporate) backed by a strong web based platform

The e-DFS A/c (Inventory Funding Account) will operate on electronic platform with no

manual intervention of branches

The limits will be sanctioned based on the introduction letter/comfort letter/performance

letter provided by the Industry Major for the dealer

Pension loan amount has been enhanced manifold recently

The Competent Authority to merge two Pension Loan schemes of SBI Loan to Pensioners

and SBI Loan to Affluent Pensioners and launch a new Pension Loan scheme known as “SBI

Pension Loan”

To meet the alignment of revised and enhanced pension and family pension


220

SITUATIONAL ANALYSIS

SITUATION 1

You are the Branch manager of a scale II branch in a rural area. The Regional Manager has asked you to popularize PMJDY deposit account and a target of 500 accounts is given. How will u go about it?

Situation 1A – You came to know that a Bank branch in a nearby district for achieving this kind of target easily, by open the accounts to their existing account holders.

Situation 1B - With a systematic approach, CSP/BC to conduct the survey and identify the persons not having the bank accounts and explain the features of the account, With wide publicity and by contacting Village heads, active persons in the villages, farmers clubs, or any cultural clubs presently existing in the villages, Make the Involvement by the Govt. authorities (BDO, etc) with good liaison.

Situation 1C – After seeing our publicity a NGO from the nearby place approaches and assure to you that they will make it happen and demanding 100 SHG loans as per their wish.

1. What will happen if we have not implement the PMJDY promptly?

1. It is going to be waste if we open the accounts for the existing account holders

2. If we do not have full coverage the millions of people do not get accounts

3. It‟s going to be waste if the accounts are not used

4. All the above

2. How the Branch manager can achieve the target?

1. With a systematic approach, CSP/BC to conduct the survey and identify the persons not having the bank accounts and explain the features of the account

2. With wide publicity and by contacting Village heads, active persons in the villages, farmers clubs, or any cultural clubs presently existing in the villages.

3. Make the Involvement by the Govt. authorities (BDO, etc) with good liaison

4. All the above

3. What kind of risk in accepting the assurance from NGO who ready to help you?

1. No Risk can accept and achieve the target easily.

2. They are helping to open deposit accounts as well as advances

3. If we accept such kind of help, we may bind to them for their unfair demand, there are such kind of frauds occurred in some branches.

4. A & B


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SITUATION 2

You are the Branch Manager. A 100% visually impaired person has come to your branch to open an account with cheque facility and ATM card. He wants to operate the account by himself. Your staff at the account opening counter has told the customer that he can operate the account with the help of POA only. The customer is offended and wants to talk to you. How will you deal with the situation? Can u open the account for a 100% visually impaired person?

4. Visually impaired persons are allowed to open Cheque facility account with ATM card 1. Visually impaired persons are not allowed to open SB Account

2. Visually impaired persons can open SB A/c with joint names 3. Visually impaired persons can open SB A/c individually but the Bank is not able to provide

cheque facility and ATM card

4. Self operated cheque facility account with ATM card can be provided

5. Pre requirements in addition to normal things ( duly filled account opening forms, KYC,etc) for providing Cheque facility account to the visually impaired person

1. Copy of the respective court order needs to be enclosed

2. Notarised Affidavit to be obtained 3. Declaration from the family members to be obtained 4. Undertaking to be obtained in the Bank‟s prescribed format “Annexure- A”

6. Post requirements after receiving the Cheque Book from LCPC

1. The customer has to bring the Cheque book to the bank and the Bank has to affix the Rubber Stamp “CARE - DEPOSITOR VISUALLY IMPAIRED” and authenticate the thumb impression of the customer with SS number in all cheque leafs.

2. The customer can operate the account after receiving the cheque book, not required to approach the Bank.

7. Visually impaired persons are allowed to issue” third party cash payment of self drawn cheques

“

1. Permitted 2. Not permitted 3. Up to Rs. 20000 Permitted 4. Up to Rs. 50000 Permitted


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SITUATION 3

You are the BM with 20 employees out of which 15 are women. In the month of March, ten ladies have taken leave on account of illness or due to children's exam. The employees who are present in the branch are not able to start the day‟s work because of the accrued shortage of staff and the customers are losing their patience due to the delay. You are supposed to go to a nearby MNC for opening of corporate salary package account and a few takeovers of housing loans.

8. How will you tackle such a situation immediately?

1. Request the possible customers to use ATM and internet banking facility, so that they can conduct all transactions except huge cash withdrawals and remittances.

2. Cash transactions beyond ATM limits done on priority basis. The transfer transaction and other back office work possible to do in a later time can collect and provide acknowledgement.

3. If necessary, issue of statement of accounts may be suspended for a couple of hours, or for the day putting up a notice board to that effect.

4. All the above

9. How will you plan for the forth coming days? 1. A few staff members who are on leave may be requested to attend the Branch

and advise to avail leave with on rotation basis and minimise their leave if possible. 2. Explaining the things to the staff about the rare comes situation and motivates them to

rise such occasion. 3. Migrate the customers to use alternate Channel products ie, ATM, CDM, INB, MBS, SSK, etc.,

a person from the branch can assist the customers for their hand holding. 4. All the above

10. How can you manage the meeting with MNC?

1. BM may explore the possibility of attending the MNC meeting in the evening and inform to them immediately.

2. It is not required to inform to the MNC for not attending the meeting.

SITUATION 4

Nabo is a customer of “X” Bank In “Y” branch, her salary is getting credited in this account. When

Nabo attempted to withdraw some cash from her account on June 22, 2014, she was informed by the

bank that there was no balance in it. On checking the bank statement, she found over Rs 400,000 had

been withdrawn from the account on several dates between May 20 and June 18, 2014. The matter was

reported to the police but no one was arrested. The bank claimed the Pin had been

collected by Nabo‟s representative on May 19th. The ATM-Cum-Debit Card had been

mailed to her on March 22, 2014.

She denied having collected the Pin or having authorised anyone else to do so on her behalf. She also

stated she had never received the ATM card. Nabo filed a complaint before the District Forum to direct

the bank, to credit her account with the amount fraudulently withdrawn. She also sought

compensation of Rs 2.50 lacs.

The bank contested, alleging Nabo‟s companion had covered his face with a cloth while withdrawing

money from the ATM, leaving a balance of only Rs 925. The forum directed the bank to credit her

account with around Rs 430,000 along with nine per cent interest and pay a compensation of Rs

50,000.

The bank challenged this order before the State Commission. Nabo also appealed for enhancement of

compensation. The State Commission found the actual amount siphoned off from the account was Rs

455,000. The bank was ordered to credit this amount to Nabo‟s account but the Commission set aside

the compensation of Rs 50,000.


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The bank filed a revision petition in the National Commission, which observed the crux of the dispute

was whether the Pin had been received by Nabo or her representative. The bank had admittedly not

handed over the Pin to Nabo but could not produce any letter from her authorising someone to collect

the Pin on her behalf. The bank could not produce any acknowledgment to show Nabo had received

the card. It could not even produce the acknowledgment for receipt of the ATM Card which it claimed

had been mailed to Nabo.

The Commission concluded, the Pin had been handed over by the bank to some unauthorised person,

which constituted a deficiency in service. The Commission indicted the bank for having permitted the

fraud to take place due to its own negligence on two counts. First, by handing over the Pin to an

unknown person whose identity could not be established. Second, there was no proof whatsoever of

the ATM Card having been delivered to any person at all. Accordingly, by an order

dated November 25, 2014 Justice dismissed the bank‟s revision, holding it devoid of merit.

11. Bank mailed the ATM-CUM-DEBIT Card and delivered the Pin @ Branch…… 1. Both should be delivered at Branch

2. Both should be send through mail 3. It is a Banks procedure, normally in all Banks following similar method of either the card or

pin delivered @ Branch to ensure it reached to a correct person

12. Bank delivered the Pin to the representative of the customer 1. Authorized representatives are permissible to collect PIN number

2. Authorization letter is not required acknowledgement in the register is enough 3. Authorization letter with ID & Address proof of the representative is necessary 4. The Pin has to be delivered only to the card holder.

13.Bank‟s claim, the representative of the customer collected the Pin Number is not accepted……

1. Bank‟s instruction not followed and not produced the valid instruction if any, received from the customer for delivering the Pin to the customer‟s representative.

2. Authorization letter is not required, acknowledgement in the register is enough 3. Authorization letter with ID & Address proof of the representative is necessary

14. Other lapses in Pin delivery

1. The card mailed on Mar 22nd and Pin delivered on May 19th, Against the Bank‟s instruction the Pin was kept in the custody for more than 45 days.

2. It was not done after 45 days the undelivered Pin number packets to be destroyed and the respective ATM cards to be blocked.

3. Undelivered Pin number packets destroyed during RFIA 4. Both a & b


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15. Any other lapses observed

1. Bank is not able to produce the acknowledgement of the ATM Card mail delivery

2. The transaction made with companion and the person covered the face with cloth, it is observed that the ATM may not be having security

3. Both a & b

16. What are the loses to the Bank 1. Bank has to compensate the loss incurred by the customer as per the

Commission direction 2. Legal expenses

3. The image of the Bank spoiled, credibility of the bank questioned, dissatisfied customer service

4. All the above

1 d 2 d 3 c 4 d 5 d

6 a 7 b 8 d 9 d 10 a

11 c 12 d 13 a 14 d 15 c

16 d


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SITUATIONAL ANALYSIS II

SITUATION 5

Anita and Balu are maintaining an STDR at Downtown branch for Rs.100000/- for one year. The mode of operation is “Either or Survivor”. Please consider the following situations.

1. Situation one – The STDR is matured and Anita is approaching the branch for payment. The signature of Balu is not available. The SWO of the branch is refusing the pay the amount with only one signature and he is insisting on the other signature also. Anita makes a complaint with the branch manager.

2. Situation two – Balu is approaching the branch and requesting for pre-mature payment of the deposit. Here again the SWO of the branch is insisting for the other signature. But Balu is telling that Anita is not available and she has gone to outstation. The funds are required for an urgent medical need.

3. Situation three – Anita approaches with great tension and with tears in her eyes and narrates to the branch manager that Balu met with an accident and is fighting for life. Finally after a lapse of two days the branch comes to know that Balu is expired and Anita approaches the branch for pre-mature payment of the STDR.

1.. In situation one which of the following statements are correct?

1. The action of SWO is correct

2. Both the signatures and the presence of Balu and Anita are required for making the payment of STDR on maturity.

3. The STDR can be paid with the signature of Anita only.

4. Both (a) and (b) correct.

2. Which of the following statements are incorrect in respect of situation two?

1. Here the action of SWO is correct

2. Pre-mature payment can be made only with the signature of both the depositors only, in the absence of any other document.

3. Pre-mature payment to Balu can be made by the branch, if the branch had obtained “Either of Survivorship Form (Revised)” signed both by Anita and Balu at the time of opening the account.

4. None of these

5.

3. Which of the following statements are correct in respect of situation three?

1. As a humanitarian measure the branch can accede to the request of Anita and make pre-mature payment of the STDR to Anita

2. The branch has to wait till maturity of the deposit and can pay to Anita after that. There is no other option.

3. The legal heirs of Balu are to be consulted and their disclaim has to obtained for making payment to Anita

4. The amount can be paid to the nominee, if available.


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SITUATION 6

On random scrutiny of some of the SB accounts in your branch, the central office inspector informs that proper details of PAN number is not recorded in respect of many accounts, where huge amounts of transactions are taking place. The fact is also mentioned in the report prepared by the C.O. Inspector. Please answer the following questions based on the above narration given:

04.Statement A – PAN number for SB accounts is not mandatory Statement B – In respect of SB accounts, where aggregate cash deposits are in excess of Rs.10 lacs in a year PAN number is compulsory. Choose the correct option.

1. Statement A is correct

2. Statement B is correct, but the amount mentioned there should be Rs.20 lacs

3. Statement B is correct


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5. Not able to choose an option. It is not clear. Some information is missing.Which of the following statement(s) is/are correct?

1. The branch has to monitor those SB accounts where the aggregate cash deposits in a year is in excess of Rs.10 lacs and above

2. Obtain PAN number for those accounts and update the data in CBS so that a single Annual Information Report (AIR) can be filed with CBDT by the Corporate Centre

3. The branch has no action in this regard. It is for the individuals who maintain the SB account to disclose the sources of income to the Income Tax authorities

4. Both (a) and (b) are correct and (c) incorrect.

SITUATION 7

G. Prahalad a Savings Bank customer of High Cliff branch of SBI is agitated and approaches the branch manager with a complaint that the cheque he deposited in his account one week ago is not credited. On enquiry, the branch manager is able to finally lay his hands on the said cheque which was presented in clearing and returned unpaid. The cheque was returned by Axis Bank and the return memo attached with the cheque was computer generated. It was not signed. Mr. Prahalad is an Advocate by profession and he wants to sue the drawer of the cheque. He insists that the returned memo has to be signed. The branch manager refuses to sign the return memo and he requests the customer to approach Axis Bank to get a signature on the return memo. Please choose the correct response to the questions given below:

6. Which of the following statement(s) is/are correct?

1. The return memo need not be signed, as it is computer generated.

2. SBI is not responsible for the unsigned return memo given by Axis Bank

3. On behalf of Axis Bank, as a measure of good customer service the branch manager of High Cliff branch of SBI can sign the return memo

4. Statements (a) and (b) are correct

7. Which of the following norm(s) govern the clearing system in India?

1. Uniform Regulations and Rules for Bankers‟ Clearing Houses

2. Uniform Rules and Regulations for Clearing Houses

3. Clearing Rules by Banking Operations Dept of RBI

4. Clearing Rules and Regulations issued by IBA to member Banks

8. Clearing Rules are governed by which of the following Act(s)? 1. Banking Regulation Act

2. Payment and Settlement Systems Act

3. Negotiable Instruments Act

4. Payment Realisation and Settlement Systems Act

SITUATION 8

Sultanpur branch of SBI is headed by a Scale III incumbent Mr. Agnihotri. Mr. Jatin Vyas is

the accountant of the branch.

Situation one:- Gangadhar, a local two wheeler financier approaches Mr. Vyas and asks him whether the ECS debits which are not honoured by the customers, be taken up in any court of law. If so, what is the


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procedure? Mr. Vyas who is not aware of the latest instructions tells the customer that he will refer the matter to his Law Officer and give the details.

Situation Two:

Another deposit customer who had deposited Rs.200000/- for a period of five years in STDR approached the Accountant to ensure that on maturity of the deposit, the interest should be credited to his SB account. The principle had to be split in to two STDRs of Rs.100000/- each and reinvested for a further period of two years. As he would be out of station at the time of maturity of STDR, he asked whether the Bank could take care of this.

9. Which of the following statement(s) is/are correct in respect of situation one? 1. ECS debits are also governed by the provisions of NI Act

2. A person has to additionally obtain one or two PDCs the make to counter party liable and fix him for dishonor of ECS debits

3. We in SBI also obtain a few PDCs for the entire amount of loan, even though the ECS debit instructions are available

4. None of these

10. Which of the following penal provisions will be operative in respect of ECS debits?

1. Punishment of two years of imprisonment

2. Penalty of twice the amount of dishonoured ECS debit

3. Both (a) and (b)

4. Any one of the above

11. In situation three which of the following statement(s) is/are incorrect regarding maturity instructions?

1. It is possible to incorporate maturity instructions in CBS

2. This has to obtained from the customer at the time of opening the deposit account

3. During the entire tenure of the deposit these instructions hold good and could not be changed

4. None of these

12. Which of the following maturity instruction(s) is/are not available in CBS? 1. Renew both principle and interest

2. Renew principle and pay back interest

3. Pay back principle and interest

4. Split the principle into two and renew. Credit interest to SB account


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13. Which of the following is the best course of action to the Bank in situation three?

1. Advise that customer that it is not possible to accede to his request

2. On maturity request the customer approach the Bank to decide what is to be done

3. RM(PB) of the branch can diarize the details and fulfill the needs of the customer

4. CBS has provisions to fulfill the customer‟s needs and manual intervention is not required

SITUATION 9

Mr. Sunil has a gold loan of Rs.500000/- in Down Town branch. His wife comes to the branch and tells that Mr. Sunil is missing for the past five years. As the outstanding in the gold loan account at present is only Rs.10,000/- she wants to close the loan account on the condition that the jewels have to be delivered to her. The branch manager directs her to meet the Accountant of the branch. The accountant accedes to her request and delivers the ornaments to Mrs. Sunil.

14. In the above situation will the Bank be liable to Sunil, if he turns up after the ornaments are delivered to his wife?

1. No. The Bank is not liable

2. Yes. The Bank is liable to Sunil.

3. As the ornaments are delivered only to the legal heir of Sunil the Bank is not liable

4. None of these

15. Will it be in order to permit Mrs. Sunil to close the gold account? 1. Yes. It is in order to permit Mrs. Sunil to close the gold loan account

2. (a) is correct, subject to obtaining an undertaking from Mrs. Sunil that she will not claim the gold ornaments and also the amount remitted towards closure of the gold loan account in future.

3. No. Mrs. Sunil should not be permitted to close the gold loan account.

4. Disclaimer to avoid of delivery of gold ornaments to the person not eligible to claim must only be

obtained

16. Which of the following Act(s) has/have the provisions relating to missing persons? 1. Transfer of property Act

2. Banking Regulation Act

3. Indian Evidence Act

4. Bankers Book of Evidence Act

17. Which of the following is/are correct?

1. As per Banking Regulation Act a person missing for a period of 7 years may be presumed to be dead for civil purposes

2. As per Banking Regulation Act a person missing for a period of 5 years may be presumed to be dead for civil purposes

3. As per Banker Book of Evidence Act a person missing for a period of 7 years may be presumed to be dead for civil purposes

4. As per Indian Evidence Act a person missing for a period of 7 years may be presumed to be dead for civil purposes


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SITUATION 10

Ajith, whose actual age is 15 years, misrepresents his age as 19 and avails an overdraft from the Bank. Prabhu, the Accountant of the branch sanctions an overdraft by including Chandru as a guarantor who is a major. After some time the account becomes irregular. The branch approaches Ajith to regularize/close the account. By this time he actually becomes a major. But Ajith refuses to regularize/close the account. Therefore the branch explores the possibility of invoking the guarantee given by Chandru.

18. Will the Bank be able to recover the over dues?

1. Yes. As Mr. Ajith has become a major he has to close the OD account

2. As at the time of sanction Ajith was a minor the account has to be closed by the guarantor Chandru

3. No. The branch cannot recover the over dues

4. The branch can rectify the position by obtaining a letter of undertaking from Ajith after he becomes a major

19. Which of the following statement(s) is/are correct? 1. The undertaking given by Ajith on attaining majority is valid

2. The undertaking mentioned in (a) has no consideration

3. Chandru is liable, as he is the guarantor

4. Even though the contract entered with a minor is void-abinitio guarantee can be invoked

20. In the above case, if Chandru was a minor and had misrepresented his age and Ajith was a major at the time of availing the loan, what would be the position of the Bank?

1. The Amount can be recovered from Ajith and there is no recourse to the Bank if Ajith becomes a defaulter

2. Bank has to wait till Chandru becomes a major

3. Both Ajith and Chandru are jointly liable and Bank can proceed against both in a Court of Law

4. No scope for recovery and the loan has to be written-off

KEY

1 C 2 D 3 C 4 C 5 D

6 B 7 A 8 B 9 D 10 D

11 C 12 D 13 C 14 B 15 B

16 C 17 D 18 C 19 B 20 A


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SITUATIONS AND ANSWERS

1. A Loan has been granted to a partnership firm. One of the partners takes retirement and other two

partners accept the liability. What action the Bank will take?

Answer-

The partnership has been reconstituted. Hence the following steps are to be taken-

1. A stamped letter of continuing guarantee should be obtained signed by all partners, including the retired

partner. This letter is taken before allowing operation on the accounts till the bank takes decision

whether to continue the facilities or not.

2. If partnership property is mortgaged to the bank, all the partners shall admit and declare that the benefit

of the existing mortgage will be available to the advances that will be made available to the

reconstituted unit. If any personal property is obtained as mortgage, the owner should admit that he

agrees for the continuance of the mortgage to the reconstituted partnership.

3. If a third party has guaranteed the account, a similar undertaking would be obtained from him. The new

account would be opened within two months, after agreeing on the fresh terms and conditions. In

respect of term loans the existing documents may be continued, suitable letter agreeing to pay the

instalment and interest will be obtained.

It has to be ensured by scrutinizing the partnership deed that the partnership does not get dissolved on the death of the partner.

2. A Bank granted a term loan to Mr. X guaranteed by Mr.Y. The Bank came to know that the borrower is

not in a position to pay the instalments and therefore it re-phased the term loan instalments. This was

not informed to the guarantor. After a few months Mr. Y approached the Bank and informed that the

financial position of Mr. X is bad. The Bank recalls the term loan by issuing notices to Mr. X and Mr. Y.

Is Mr. Y liable as a guarantor?

Answer-

Re-phasement of term loan is a material change in the contract. It requires the consent of the guarantor under s/133 of Indian Contract Act. As the consent of the guarantor is not obtained Mr. Y is not liable.


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3. A partnership firm was sanctioned a cash credit limit of Rs.20 lacs on 02/05/2013. The documents were

signed by partner A on 02/05/2013. But partner B signed the documents on 02/06/2013. Discuss the

legal implications.

Answer-

It is preferable that the documents are executed by all the partners/guarantors on the same day. However, where it is not possible, the documents may be executed on two or more different dates. Each signatory should put the date on which he executed the documents. The document should be treated as executed on the first date and the limitation would commence from that date. However the personal liability will commence from the date of signature of each partner.

4. Mr. X has a gold loan for Rs.5 lacs. He is absconding for the past five years. His wife wants to close the

loan account on the condition that the release of gold ornaments should be made to her. Discuss the

legal implications.

Answer-

As per s/108 of Indian Evidence Act, if a person is missing for more that 7 years and the persons who would have ordinarily known of his existence have not heard about him he is presumed to be dead for civil purposes. In this case he is absconding for 5 years. Hence the gold ornaments can be delivered only to Mr. X after the closure of the gold loan. It cannot be given to his wife. However she may be allowed to close the gold loan account subject to her giving an undertaking that she will not claim – a) The gold ornaments pledged to the Bank – b) The amount credited to the gold loan account.

This is done to reduce the interest burden.

5. Mr. X has a safe deposit locker facility with the Bank. The locker rentals have not been paid by him

despite reminders. Mr. S has a clean overdraft at another branch of the Bank which is irregular and time

barred. When the customer comes to operate the locker, the branch manager refuses to allow him to

operate and says that he has lien on the contents of the locker for the above dues. Please discuss.

Answer-

In the present the Bank cannot exercise general lien on the contents of the locker. The articles are kept for safe keeping only. However the Bank can exercise particular lien on the contents of the locker for any arrears in rentals.

6. A new Accountant has taken charge in the branch. He observes many small gold ornaments are

relating to unclaimed items are kept in the joint custody of cash officer and accountant. These are

articles left by the customers while operating the locker. He wants to dispose off these items and collect

reasonable safe-keeping charges. As a branch manager how will you react?

Answer-The branch has to take every effort to trace the true owners of these articles and return it to them.

The matter has to be referred to the controlling authority. Under s/71 of the Indian Contract the Bank is the

finder of the lost good in these cases. S/169 of the Act permits sale of such goods only when the following

conditions are satisfied-


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1. When the Bank is not able to find the owner of the goods with reasonable diligence

2. When the owner refuses to pay reasonable charges for safe-keeping

3. When the article is posing danger to the Bank and it is perishing or losing its value

4. When the lawful charges of the Bank exceeds 2/3rds of the actual value of the article

As per Indian Penal Code –

A person who finds property not in possession of any other person and takes such property for the purpose of protecting it for or of restoring it to the owner, does not take or misappropriate it dishonestly and it not guilty of an offence. However, he is guilty of criminal misappropriation of the property if-

1. He misappropriates it for his own use when he knows or has the means of discovering the owner

2. He has not kept the property for a reasonable time to enable the owner to claim it

As per Banking Companies (period of preservation of records) 1985 RBI‟s permission has to be obtained for sale of unclaimed articles.

To avoid all these happenings in future the official enabling the customer to operate the locker should verify the locker room before the customer leaves the branch for any left over articles. The customers have to be properly educated for ensuring to close the locker before they leave the branch and check the locker operations are completed without leaving behind any ornament in the premises.

7. One of your customers forgets to lock the locker after operating it. The official in-charge of locker

operations in the branch finds it only in the late evening. What steps have to be taken to protect the

interests of the Bank and the customer?

Answer-

An inventory of the contents of the locker has to be taken. It should be witnessed by two officers of the Bank, preferably joint custodians. It is preferable to have it witnessed by a valued customer of the Bank. The contents may be kept in a sealed packet as a safe deposit item in the custody of BM/Accountant. The customer has to be contacted for delivery.

The matter has to be explained to the locker holder in detail and should be recorded. The contents have to be delivered against his unconditional acknowledgement of the entire contents. The customer has to be educated to be cautious in operating the locker in future. The controlling authority has to be informed. The locker official has to satisfy himself that the locker is properly locked after each operation. This will help to detect any incident like this immediately on its happening and before other hirer enters the locker room for operating his locker.


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8. Mr. Arvind and Mrs. Anuradha have safe deposit locker with mode of operation E or S. Arind telephones

the Bank and tells that the locker key is lost and Mrs. Anuradha has become insane. At this point of

time Mrs. Anuradha comes to the Bank to operate the locker. How will you handle the situation?

Answer-

In the present case the Bank should not take cognizance of the telephone call received from Arvind. The insanity, if any, of Mrs. Anuradha has to be properly established. However Arvind also informs that the locker key is lost. But Anuradha has come to operate the locker. There may be possible dispute between them. It is preferable to persuade them to close the locker in view of the disagreement between them.

9. Mr. Boopalan and Mrs. Kamala are maintaining a locker in your branch. Mrs. Kamala says that she has

lost the locker key while travelling in a train. The handbag in which the locker key was kept was stolen

by somebody. Now she is requesting the Bank to have access to the locker for taking away the gold

ornaments kept inside the locker for the purpose of her daughter‟s marriage. Mr. Boopalan is in London

right now and he cannot come immediately. He will come just one or two days before the marriage.

How will you deal with the situation?

Answer-

The key is lost. The locker has to be subjected to „break-open‟. In such circumstances the request of all the locker holders has to be obtained in writing and it has to be done in the presence of all of them. Information has to be sent to Mr. Boopalan and his confirmation has to be obtained by e-mail/fax/telephone. Also the „break-open‟ of the locker should be arranged after two three days so that Mr. Boopalan is able to give his confirmation. After the confirmation of Mr. Boopalan, it is preferable to get an indemnity to perform the operation of „break-open‟ the locker. The inventory of the contents has to be kept on record. A letter from Mr. Boopalan has to be obtained confirming the action of the Bank after his return from London. We have to make discrete enquiries about the genuineness of the request of Mrs. Kamala.

10. Mr. Sunil Kumar is having a locker in your branch. He died in accident. His son Mr. Brijesh comes to the

branch with locker keys and is showing a hand written Will of Mr. Sunil Kumar stating that the contents

of the locker has to be delivered to him. Simultaneously Brinda daughter of Sunil Kumar is also claiming

the contents of the locker. How will you react?

Answer-

As a matter of courtesy the Bank will send a letter of condolence to the family members. The death certificate has to be called for and scrutinized carefully. A Will has to properly executed, witnessed and probated. A Will without probate cannot be executed, further there should be no counter claim. The Bank cannot delivery the contents of the locker to Brijesh because there is counter claim from his sister. The matter has to be explained to Brijesh and he has to be advised to obtain a probate from the court. Brinda‟s request cannot be accepted as prima facie there are two legal heirs. Brinda will be advised to get a suitable court order for delivery of the contents of the locker. If any nomination is already there on records the nominee has to be intimated about the claims made by Brijesh and Brinda. If the son and daughter do not produce legal representation within a reasonable time the contents have to be delivered to the nominee.


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11. Aparna Traders had a current account with the bank. A cheque for Rs.10000/- tendered for credit of a/c on 4.4.2005 was given immediate credit. The customer presented a cheque on 6.4.2005 and withdrew the amount. On 10.4.2005, the Bank informed the customer that the said clearing cheque had been returned unpaid, and therefore, his account had been debited with Rs.10000/-. The customer disputed the stand of the bank and filed a suit for recovery of the sum from the bank with interest. The bank claimed that it was entitled to exercise the banker‟s right of general lien on the money balance of the customer coming to it in the ordinary course of business.

Answer-

Lien can be exercised only against securities and properties in bank‟s custody; also these should have come to the bank‟s possession in the normal course of business. The banker‟s right over the money balance in the customer‟s account is right of set off. The right of set off is available only if there is mutuality of debts. It means that there must be mutual demands between the bank and the customer. If there is a debit balance in one a/c and a credit balance in another a/c, there is mutuality.

The Cheque amount was allowed to be withdrawn by the customer. The customer has been led to believe that the clearing cheque has been realized. After a delay of 4 days, the bank had debited the account of the customer with the amount, as the cheque had been returned in clearing. The madras H C had held in Indian Bank Vs Annapoorna Finance. that the bank could not exercise the right of set off as there was no existence of mutual demands nor exercise lien in such a case as there was no existence of mutual demands nor exercise lien in such a case as there is no security or property left in the bank‟s possession. The delay of 4 days was also considered as negligent by the High Court.

12. An account was opened with proper introduction and with an initial deposit of Rs.10, 001/-. Two drafts of value of Rs.3,00,000/- and Rs.2,50,000/- were collected and credited to the account through clearing. You are advised by the paying Bank that the signing official‟s signature has been forged and that the draft amount be refunded to them. Two cheques drawn on the account aggregating Rs.5,00,000/- have been received through clearing at the same time. Discuss.

Answer-

It is not clear whether the proceeds are still in the account or not. Both the cases are examined here.

Basically, the Bank is protected if the account has been introduced properly and the two drafts have been collected in good faith, without negligence and under circumstances, which did not show that the account holder‟s title was anyway defective. If these conditions are satisfied the Bank‟s can claim the collecting Bank protection under section 131 of N.1. Act.

The next question is, if the proceeds remain in the account can the bank return the two cheques and refund the amounts to the other Bank. As another Bank has reported forgery and as the amounts involved are large, we may return the cheques for the reason “Refer to Drawer” the Bank should be asked to serve on us a suitable court injunction on the same day restraining us from paying the amounts to the account holder. It must be remembered that till such an order is received our position is not safe. The next question is what is our position if the amounts have already been withdrawn. Certainly, we cannot do anything in the mater. The other Bank has to pursue its remedies against the account holder.


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13. Motilal & Co deposited with their branch a cheque for Rs.4.50 lacs issued in their favour by Ramlal & Co, a proprietary concern towards settlement of their long overdues. The cheque was drawn on the local branch of Union Bank of India, bankers to Ramlal & Co. While presenting in clearing, the cheque was wrongly lodged on Bank of India resulting in return of the cheque by Bank of India with the remarks “Not drawn on us”. Thereafter, the cheque was lodged on Union Bank of India, when it was returned by them with the remark-“Operations stopped since yesterday and the proprietor adjudges as insolvent”.- Motilal & Co have demanded payment of the cheque amount failing which they have threatened that they will file a suit against the Bank for recovery of the amount. Please discuss the position of the Bank.

Answer-

The cheque ought to have been lodged correctly on Union Bank of India. Due to lodging of the cheque wrongly on Bank of India there was undue delay in presentation of the cheque on Union Bank of India leading to the development. Had the cheque been lodged correctly on Union bank of India in the first instant itself, the cheque would have been paid. As such, this is negligence on the part of the Bank due to which the firm has suffered. The Bank is liable.

14. Arumugam, retired Govt. Officer has a T.D.R. of Rs.3,00,000/- and a S.B. a/c at your branch for collection of pension. The account has been conducted satisfactorily. One day, his neighbour calls at the branch and informs you that Sri Arumugam has been admitted in a nursing home as he bas suffered a heart-attack and has became unconscious; further,an expense of Rs.20,000/- has been incurred towards emergency treatment. The neighbour requests you to release Rs.10,000/- to the nursing home immediately for further treatment. How will you act?

Answer-

We will visit the customer at the nursing home. We have to ensure that the message of his illness has reached his wife so that she can come back immediately. The neighbours would probably have already arranged for it. In the present condition of the customer, he will not be able to sign/ put the thumb impression on the cheque/ withdrawal form. Payment of the amount may be made to the Nursing Home against the acknowledgement by a responsible person, for the specific purpose of treatment of Mr. Arumugam. The witness of two respectable neighbours who are now helping Mr.Arumugam in the nursing home may be obtained on the debit voucher.

The customer is a retired Govt. Officer and has substantial Term Deposits at the branch; also, the account being conducted satisfactorily. Hence, it is an extra-ordinary case calling for extra-ordinary sense of concern for the customer. The customer/his wife will appreciate the bank‟s action and the image of the Branch will also go up.

However, in the unlikely event of the customer contesting the debit, we can successfully counter it on the principle of „Quasi-contract‟, as any liability incurred by a third party in these circumstances should be reimbursed by the beneficiary to the third party. This is only a very remote contingency.


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15. Your customer Mr.Arvind Kumar Patel draws a cheque for Rs.50,000 in favour of Y and writes to the bank not to pay the cheque because he has intentionally signed as Arvind Kumar Patel, whereas his specimen signatures are “A.K. Patel”. This letter was received by the bank after it has already paid the cheque. Shri Patel claims the amount from the bank on the plea that his signature on the cheque does not tally with the bank‟s record. Hence, the pay is wrong.

Answer-

The general proposition that the bank need not pay the cheques signed by the customer in a different mode than the specimen provided by him is well established. The important question to be answered first is can the bank pay a cheque signed by the account holder in a different mode than the specimen furnished by him. The answer is „Yes‟ as it is a valid mandate to pay. In fact, in the instant case, he has advised that he had signed as Arvind Kumar Patel and not A.K. Patel, as provided in the specimen. Hence, there is no dispute that the signature has been put on the cheque by the customer. The cheque has been paid in due course and hence it is binding on the customer. He cannot now contend that the signature varies from that on record.

However, a disturbing question has to be answered by the branch. How such a cheque was paid? The cheque ought to have been returned with the reason

“Signature differs”. It is a dangerous practice to pay cheques signed in a different mode than hat in the specimen signature.

16. When the position of the accounts of a Partnership firm and its partners are, as under;

Firm‟s Current Account Balance Rs.50, 000 (Cr)

Partner – 1 Current Account Overdraft Rs.5, 000 (Dr)

Partner – 2 Savings Bank Accounts Rs.20, 000 (Cr)

Partner – 3 Current Account Rs.8, 000 (Cr)

An IT Attachment Order is received on the firm‟s name for Rs.80, 000/- how do we appropriate?

The attachment is enforceable on the accounts of the both the firm and its partners. If there is any shortfall in the balance in the firm‟s account, all the partners should bear it in equal proportion. The accounts, therefore, debited asunder and the amount paid to the I.T authorities. From the account of the Firm (entire balance)

Rs.50,000/-

From Partner – 1 (as there is no credit balance)

Nil

From Partner – 2 (1/3rd of the shortfall i.e., Rs.30,000/-)

Rs.10,000/-

From Partner – 3 (Entire balance as it is less than 1/3rd)

8,000


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17. Chaitanya & Co has three partners, two of whom have left India for three months. Shri Chaitanya, the

third partner approaches you for opening a current account of the firm, stating that the other two

partners are only sleeping partners. Will you allow him to open the account?

Answer-

According to Section 19(2) of the Indian Partnership Act, 1932, a partner alone cannot open an account on behalf of the firm.

Signatures of all he partners are required to open a current account in the name of the firm, even though the remaining partners are sleeping partners.

In the present case, Bank should not open the account in the name of the firm till the other two partners come back to India.

If the bank permits the loan partner Shri.Chaitanya to open the account, operation in the account shall be allowed only after obtaining the signatures of other partners.

18. A current account with a balance of Rs.30,000 stands presented for payment subsequently and

Radhika, husband and wife, with E or S facility at your branch. Krishna Rao comes to your branch and

says that a divorce decree is issued by the court and requests you not to allow his wife to operate the

except paying her Rs.1,000 towards maintenance. Can you consider the request of Krishna Rao?

Answer-

The account is under the style of E or S which means the terminal balance is payable to both of them during their lifetime and to the survivor in case of death of one of them. If any dispute between the parties arises, the bank should advise them to settle their dispute and approach it with fresh instructions. Till such time, all the transactions should be made under the joint signatures of the account holders.

In the instant case, I would not allow any transactions either by Mr.Krishna Rao or by Mrs.Radhika individually, till such time they give fresh instructions. Transactions under both the signatures can be allowed.


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19. Ramesh and Sons are banking with you and are enjoying a cash credit

limit of Rs. 3.50 lacs. You have today received a “Garnishee Order” for

Rs. 75000/- on the account.

How will you handle the matter if

a) The balance in cash credit account is debit Rs. 3.42 lacs

b) The balance in cash credit account is credit Rs. 45000/-.

c) The balance in cash credit account is credit Rs. 40000/- and there is a

term loan in the name of the firm wherein three instalments amounting to Rs. 12000/- are due for payment

Answer –

As the account is in debit no amount shall be attached.

b) As there is a credit balance in cash credit account the balance shall

be attached. However, it is necessary to confirm that there are no

dues payable to the bank.

c) Banks right of set-off to the extent of Rs. 12000/- shall be exercised

first. The balance amount will stand attached.

20. Mr Babu lal and his partner Mr. Deen Dayal maintain following accounts

with you

1. Savings bank account in the sole name of Mr. Babu Lal

2. Overdraft account in the joint name of Mr. Babu Lal and Mr Deen

Dayal

c) A joint savings bank account in the names of Mr. Babu Lal and Mr Deen Dayal.

d) An overdue loan account of Mr Deen Dayal.

You are advised by your Manager to-

(i) Set Off the balance in savings bank account of Mr Babu Lal against

overdraft account in the joint name.

(ii) Set Off the balance in joint savings bank account against over dues

in the loan account of Deen Dayal.

(iii) Set off the balanced in joint savings bank account against the

overdraft account in joint names. - How will you comply?


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Answer-

(i) Mr. Babu Lal‟s credit balance cannot be set-off against the joint overdraft unless he has expressly agreed to it or if they are jointly and severally liable to pay the debt in their joint names.

(ii) The joint credit balance cannot be set off against a debt in the sole name of Mrs. Deen Dayal unless Mr. Babu Lal has agreed to it specifically.

(iii) In the absence of any express or implied agreement to the contrary, a banker has the right to set-off credit balance of the joint savings account with the debit balance on another account in the same names subject to a reasonable notice.

21. Mr Harikrishan is having relations with your branch for the past twenty years. He has been sanctioned various facilities during the past ten years and almost all accounts are irregular or overdue for payment. In one of the loan accounts even the documents are barred by limitation. He has been making false promises assuring that he would pay all the loan after he sell his ancestral property. He has now sent a remittance of Rs. 5 lacs advising you to appropriate the same towards his loan accounts. How will you proceed? Can the bank also recover the time barred debt?

Answer-

As per Section 59 of the Contract Act where a debtor owing several distinct debts to one person, makes payment to him either with express intimation, or under circumstances implying that the payment is to be applied to the discharge of some particular debt, the payment, if accepted, must be applied accordingly. Section 50 of the Act provides that where the debtor has omitted to intimate and there are no other circumstances indicating to which debt the payment is to be applied, the creditor may apply it at his discretion to any lawful debt actually due and payable to him from the debtor, whether its recovery is or is not barred by the law in force for the time being as to the limitation of suits.

In the above as Mr. Harikrishan has not given any express or implied appropriation the bank may apply the money to any lawful debt, which is due and payable. The Bank may even apply it to the loan, which is barred by the limitation. However, the bank is entitled to exercise this right after the borrower has been given the opportunity to exercise his right and has failed to do so.

22. Miss Shewata maintains a savings bank account with you for the last one year. On her 14th birthday she approaches you for a loan of Rs. 10,000/- and offers surety of her uncle who has substantial deposits with you. She offers to repay the loan out of the pocket money of Rs. 800/- per month she received through her account from her grand father. Prima-facie you do not find any financial risk in granting the loan. Can the request be considered?

Answer-

An agreement by a minor to repay money lent, or to be lent, is absolutely void. A guarantee by an adult third party to secure minor‟s loan cannot be enforced against the surety because the contract of debt guaranteed is absolutely void. Even if a third party lodges securities of his own to secure the indebtedness of a minor, the deposit would be void, and the surety can claim the securities without paying off the amount secured.

23. Raju a minor has been maintaining a savings bank account with you for the past four years with his father as the guardian who operated the account on his behalf. On attaining the age of majority he has issued a notice to the bank that his father has mis-used the entire amount withdrawn by him and has advised the bank to make good the loss. Does the bank incur any liability?


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Answer-

The bank has dealt with the guardian of the minor, in his capacity as a guardian, the responsibility for ensuring that the transactions are in fact for the benefit of the minor, is that of the guardian.

As the bank has dealt with the guardian in good faith without the knowledge of his malafide actions it would not incur any liability.

24. M/s Saw Mill a partnership firm is banking with you for the past several years. You receive a notice of death of one of the partners. How will you react-

a) If the account is in credit?

b) If the account is in debit?

Answer-

On notice of death, insolvency retirement, insanity of any one of the partners from the firm, or dispute among partners, unless the partnership deed specifically provides for the continuation of the partnership under the existing style, further operation of the account must be stopped and no further debits should be allowed.

(i) if the account is in credit, the balance will be paid to the remaining partners jointly. They may open a fresh account after reconstituting thefirm.

(ii) In case the account is in debit, the partners should be given a notice, including the heirs of the deceased within a reasonable time calling upon them to pay the due on the account.

25. Nahar International is a partnership firm with three partners. As per the partnership deed any one of the partners can sign cheques and operate upon the account. One of the partners Mr. Suresh Kumar request you for a short term loan of Rs. 2,00,000/- for a period of three months to purchase a shed for the firm. You have no doubt about the financial position of the firm and its partners and their capacity to repay the loan.

Can the loan be allowed without the consent of the other two partners?

Answer-

As per Section 19(2) of the Partnership Act, 1932 acquisition of immovable property on behalf of the firm falls outside the scope of the implied authority of the firm, and as such, borrowing for this purpose would automatically fall outside the scope of a partner‟s implied authority. The proposal in question can be considered only if all the partners execute the documents jointly.

26. Onkar was a peon employed by a firm dealing in vehicles. He got hold of a few cheques in favour of the firm and without authority and knowledge of the owners of the firm signed the name of the owner and affixed the firm‟s rubber stamp and thus endorsed the cheques to another firm dealing in vegetables. This firm gave these cheques to its bank for collection which collected the cheques without verifying whether the endorsements were genuine. The original owner filed a suit against the bank for the proceeds of the cheque on the ground that the bank had collected forged cheques.

Discuss the claim made by the firm and defence of the Bank.


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Answer-

As per Section 131 of the Negotiable Instrument Act, 1881, a banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective incur any liability to the true owner of the cheque by reason only of having received the payment. In order to be eligible for the protection accorded by this section the banker must fulfil the following basic conditions-

(1) The cheque must be collected for a customer.

(2) The banker acts as an agent for collection

(3) The cheque collected must be a crossed cheque

(4) The collecting banker must have acted in good faith and without negligence.

In the aforesaid case the circumstances were such that they required some enquiry and verification on the part of the banker as to why a vehicle dealer is not collecting the cheque in question through its own account and as to why the cheque is being endorsed to a vegetable dealer. The collecting banker should have been put on alert as to the genuineness of the endorsements. In view of the above the statutory protection under Section 131 may not be available to the bank.

27. Discuss the position of the paying banker in each of the above cases

a) An uncrossed order cheque for Rs. 12000/- is presented on the counter for cash payment. The cheque is in order in all respects including the signature of the drawer and there is adequate balance in the drawer‟s account.

b) A cheque for Rs. 24000/- is paid by the bank in clearing. It later transpires that the original amount of the cheque was only Rs. 4000/- which is later chemically altered.

Answer-

(a) As per Section 85 of the Negotiable Instruments Act, 1881 where a cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee is discharged by payment in due course. As per Section 10 of the Act, payment in due course means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances, which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount mentioned therein.

The paying banker will get a proper discharge if it can be established that proper care has been taken to ensure that the payment has been made to the person entitled to receive the payment.

(b) Any material alteration of a negotiable instrument renders the same void as against any one who is party thereto at the time of making such alteration and does not consent thereto unless it was made in order to carry out the common intention of the original parties.

Section 89 of the Negotiable Instruments Act, 1881 provides that where a promissory note, bill of exchange or cheque has been materially altered but does not appear to have been so altered, or where a cheque is presented for payment which does not at the time of presentation appear to be crossed or to have had a crossing which has been obliterated, payment thereof by a person or banker liable to pay, and paying the same


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according to the apparent tenor thereof at the time of payment and otherwise in due course, shall discharge such person or banker from liability thereon; and such payment shall not be questioned by reason of the instrument having been altered, or the cheque crossed.

The Section affords protection to the paying banker provided-

(i) it can be established that the alteration was not apparent at the time of presentation and that it could not be detected on a reasonable scrutiny by applying due diligence and care. The payment was made in due course

28. How will you decide the following-

a) A cheque is presented for payment wherein the amount in words is stated as Rs. 12800 while in figures it is stated as Rs. 12300/-. Which of the two amounts can be debited to the account?

b) A cheque is presented wherein the name of the payee and amount in words is written in Tamil while the amount in figures and date is mentioned in English. The signature of the drawer tallies with the specimen on record.

Answer-

(a) As per Section 18 of the Negotiable Instrument Act if the amount undertaken or ordered to be paid is stated differently in figures and in words, the amount stated in words shall be the amount undertaken or ordered to be paid

(b) As the cheque is drawn in the language of the region where the bank is located the paying banker cannot take plea of ignorance of the language. The cheque will be paid if otherwise in order.

29. A cheque payable to Mr. A or order and crossed “not negotiable” is presented for payment through the clearing. Mr. A endorsed the cheque in favour of Mr. B, who has put his endorsement on the cheque. The cheque is presented for payment be paid?

Answer-

The use of “not negotiable” crossing does not impair the transferability of the cheque. It may be endorsed and transferred any number of times as far as its transferability is concerned; it only deprives the instrument of incidence of negotiability. If the holder has a good title, he can still transfer it with a good title, but if the transferor has a defective tile, his transferee is affected by such defects and he cannot claim the rights of a holder in due course by establishing that he got the instrument in good faith and for consideration. A person who takes a cheque crossed “not negotiable” has no better tile to keep such a cheque than his immediate transferee, and the true owner can always

claim it or the amount of it. However, the banker who pays the cheque and the banker who collects it are protected, provided the payment and the collection have been made in good faith and without negligence.


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29. A Bank branch, which had no godown of its own, entered into an arrangement with a private warehouse, for storage of goods pledged to the bank. Some of the goods so entrusted for storage were lost. Discuss, with reference to the relevant provisions of law, the nature of the relationship between the bank the warehouse and liability, if any, of the warehouse of the loss.

Answer-

The problem is based on the decision of the Kerala High Court in „Vijaya Bank Vs. United Corporation‟ AIR, 1991 In the above case the relationship between the bank and private warehouse is that of bailer and bailee governed by provisions of the Contract Act. In terms of Section 151 of the Contract Act, it was the duty of the warehouse to take proper care of the goods entrusted to the warehouse. Bailee can avoid liability for loss only if he has taken that amount of care. (Section 152)

30. A bank sanctions a cash credit limit against the security of a continuing guarantee. The surety dies. Can the bank proceed against the heirs of the surety under the guarantee?

Answer-

As per Sec. 131 of the Indian Contact Act, the death of the surety operates, in the absence of any contact to the contrary as a revocation of a continuing guarantee so far as future transactions are concerned. The liability of surety in respect of previous transactions however remains. In the present case the heirs of the surety shall be liable for the debit balance on the date of the death but the liability shall be limited to the value of the surety‟s estate acquired by the heirs or the debit balance on the date of the death

whichever is higher.

31. X was a sleeping partner and retires without giving a public notice. After this, the branch has financed Rs.50,000/- which was not repaid. Can the bank hold X liable for the amount?

Answer-

A dormant, or secret, or sleeping partner is not liable for the acts of the firm, after retirement, to others, who do not know about the retirement. But we should have received a partnership letter at the time of sanctioning the loan. Had he signed the letter, then the sleeping partner was legally obliged to give a notice to the bank of his decision to sever his connections. In its absence, then the bank can sue that sleeping partner also.

32. A, B & C are in partnership. A is about to retire and asking you the steps to be taken to get discharged from the liabilities of partnership who availed loan facility from you. What advice would you give and why?

Answer-

He should be advised that on the date of his retirement, he is jointly and severally liable. But there are 4 ways to absolve him.

a) The firm may bring the account to credit balance before retirement.

b) He may pay either singly or jointly with other partner.

c) If the remaining partners are continuing, they may undertake, if acceptable to the bank, to takeover the liability of the old partner. In that case, the old account to be closed by a new debit in the name of new firm.

d) If nothing above is feasible, he would be responsible for the balance on that date either singly or jointly, further operations in the account will be stopped provided the partner specifies for doing so in writing.


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33. A, B & C are partners having a share of 2:3:5 in profit/loss. They have an overdraft account of Rs.1 lac. Now A comes to the branch and pays Rs.20,000/- and asks to give a no due certificate. Can you accept the cash and give no due certificate?

Answer-

You can accept the cash and keep it in Sundry Deposit pending finalization to liquidate the account. No certificate to be given since the partners are jointly and severally liable, notwithstanding any profit sharing ratio.

34. S.B account holder draws a cheque for Rs.500/- in favour of Shruti, his daughter aged 13 years. When Shruti presents the cheque for payment across the counter, the Single Window Operator refuses to pay the cheque because in his view, Shruti being a minor cannot receive payment of a cheque. How will you handle the situation?

Answer-

In terms of Section 26 of N.I.Act a minor can draw, endorse, deliver and negotiate any negotiable instrument so as to bind all parties to the instrument except himself / herself. As such a minor can become a payee of cheque without any legal impediment. The SWO will be explained the legal position in this regard. After making enquiries and satisfying on the identity of the payee the SWO will be instructed to process the cheque for payment.

35. M/S Party & Co. was sanctioned a cash credit facility of Rs.4 lakh by our bank against pledge of goods and personal guarantee of Mr.X who is not a partner in the firm. The bank subsequently recalled the advance and demanded repayment of the amount both from the borrowing firm and guarantor. As there was no response, the Bank sold the pledged stocks by public auction for Rs.2, 70,000/- and filed a suit against the borrowing firm and the guarantor for the balance amount due in the cash credit account. Mr. X denies his liability on the ground that the pledged stocks were sold without his knowledge or consent and in doing so, the bank has prejudiced his right as guarantor. How will you deal with the situation?

Answer-

The right of sale conferred by Section 176 of the Contract Act, 1872 arises only if the pawner makes default in payment of the debt or performance of the promise at the stipulated time. Even when no period is fixed for the repayment of debt, or

the performance of the promise, the pawnee, to entitle him to exercise the power

of sale conferred by this section must prove:

a) that he had made demand for the payment of the debt

b) that the pawner had made a default and

c) he had given due notice of sale as required by this section.

In the present case the conditions a & b stand fulfilled. The contention of the

guarantor is that the pledged goods were sold without due notice to him and the

pawner. In case the right of sale is improperly exercised, the pawner is entitled

for damages caused thereby. Here the pledged stock was sold in a public auction. Therefore, the damages in this case will be difficult to prove.


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36. In one of our branches, on a Monday, a mechanical failure occurred. The systems were not working due this sudden, unexpected event. It is the first week of the month. There are number of customers waiting in the banking hall. There is uncertainty regarding repairs. How you will handle the situation as a frontline officer?

Answer-

This is a peculiar situation. There is an approved “ disaster recovery plan” at the branch. As per this plan we will start routine banking transactions with the help of shadow file. We will also appraise the customers and request them to co-operate us in this situation and assure them that the problem will be solved immediately. We will keep all the vouchers separately and make the data entry after repairs. If the time required for repairs is more than one day then we will try for alternate server from nearby branch or ZOCC. We can also request Customers for making transaction from nearby branch or through ATM.

37. Mr. Sham a S.B. account holder of your branch had given a mandate to the branch to credit proceeds of Dividend / Interest warrants as and when received from companies. The branch was carrying out these instructions regularly. Mr.Sham suddenly passed away last month after his death; the branch received a dividend warrant for Rs.2000/- for credit to his account. What will you do in such a situation?

Answer-

Like all the mandates, the mandate for the payment of Dividend warrants to the branch also ceases to be operative after the death of Mr.Sham However, it is a common practice among bankers to continue to receive such instruments even after the death of a customer. The amount credited to the account of the deceased or to a new account (to be operated by the executor / administrator) belongs to the estate of the deceased customer which is paid to the legal heirs or operated by the executor / administrator so appointed by the court.

38. Mr. Anupam is maintaining an account with your branch. An amount of Rs. 25,000/- was credited to his account of by mistake. Mr. Anupam took advantage of the situation and utilised this money after withdrawing. Your branch detected the mistake after a lapse of three months. Your branch has claimed interest on the said amount for three months from Mr. Anupam. Is the account holder (Mr. Anupam) bound to pay interest to the bank as claimed?

Answer-

Mr. Anupam has to repay to the bank the amount of Rs. 25,000/- credited to his account by mistake, in terms of Section 72 of Indian Contract Act. The beneficiary, Mr. Anupam, will become a constructive trustee of bank‟s money. In terms of Section 4 (2) (b) of Interest Act 1987 and Section 34 (1) of Civil Procedure Code, interest has to be paid by Mr. Anupam, more so because he knew of the wrong credit and utilised the amount.

39. An entrepreneur / applicant engaged in manufacturing of batteries has approached your branch for cash credit facility. The unit has projected sales of Rs. 9 lacs in the current financial year. The sales projection appears reasonable. The applicant wants a limit of Rs. 1.80 lacs. Discuss the method of assessment for working capital that your branch would adopt to assess his credit requirements.


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Answer-

To assess the credit requirements of the applicant, we shall first adopt the under noted two methods:

(i) (Total expenses x Operating Cycle in No. of days ) / 30

(ii) Projected Annual Turnover

(b) Total working capital required [25% of (ii)]

(c) Working capital limit [80% of (b)]

We shall arrive at the two assessed limits and sanction the one, which is higher, in terms of Nayak Committee recommendations.

40. An old and now incapacitated customer of your branch wants to withdraw a sum of Rs. 5,000/- from his SB account. He is unable to come to the branch. He wants that a person known to him may be permitted by the bank to withdraw the amount. How will you help him?

Answer-

If thumb impression of the incapacitated person can be obtained, then his impression would be identified by two independent witnesses known to the bank, one of them should be a responsible bank officer. If even thumb impression cannot be obtained, then a mark can be obtained on the Cheque / withdrawal form, which should be witnessed as stated above. The person who will actually withdraw money on behalf of the incapacitated customer will also have to be identified by two independent witnesses. This person (drawing the money) should also furnish his signature to the bank.

41. M/s Patel & Co., a partnership firm was granted cash credit facility by your branch. The firm has not paid back the outstanding amount for a long time despite demands raised and the documents have also become time barred. Your branch has now decided to file a court case against the firm. The advance is secured by mortgage of prime immovable property. It was created eight years back. Discuss the type of case the bank should file, the limitation period applicable in this case and the date from which the limitation period will start.

Answer-

For enforcement and recovery of payment of money secured by a mortgage on immovable property, we shall file mortgage suit against the borrower. In cases of mortgage, the limitation period is 12 years. However, the period of limitation would commence from the date on which the money sued for became due. In the instant case, even though 8 years have passed since creation of mortgage, the material point is the date when the money became due for payment to the bank. The counting of 12 years will start from that date.

42. At the request of a Savings Bank account holder, your bank agreed to keep Rs. 1 lac in trust for government. The government authorities seized this balance. However, your bank paid this trust money of Rs. 1 lac to the account holder inadvertently. No immediate action was taken against the bank by the government authorities, as they did not notice this violation. Five years lapsed by the time the government authorities took notice of the fact and threatened to initiate legal action against your bank. Can the govt. authorities still sue the bank?


248

Answer-

There is no question of any limitation period in this case, as the period of limitation is indefinite (Section 10 of the Limitation Act, 1963) against a trustee for breach of trust, and the limitation period commences from the date when the breach is noticed. In the instant case, the government authorities can sue the bank for recovery of money.

43. ABC & Co is a partnership firm enjoying cash credit limit of Rs. 5 lacs at your branch. A one of the partners, met with an accident and died. On learning this news, how will you proceed in respect of the loan?

Answer-

Make a note of the fact and confirm the news

_ Call for the death certificate copy for record

_ Stop operation in the account and open another account to prevent operation of Clayton‟s rule

_ Call for reconstituted firm‟s deed for record

_ The legal heirs‟ of the deceased partners may be roped in as guarantors

44. Pravin Chemicals have a Cash Credit facility of Rs.40 lacs at your branch. A cheque for Rs. 5 lacs favouring Pravin Enterprises is received through clearing. How will you proceed?

Answer-

Ascertain whether the payment is for trade related matter or otherwise

_ If it is financial inter-linkages between associate concerns, whether prior approval has been obtained from the bank for such investments

_ Examine the impact on the firm‟s liquidity and solvency

_ If the drawing power permits, payment of the cheque cannot be withheld;

however bank‟s position in this regard will be conveyed to the firm and the

partners will be called for discussions.

45. Elite exports have a packing credit limit of Rs.25 lacs at your branch. The export bills were sent on collection basis, as there were discrepancies. Despite follow up, the payment has not been forthcoming. Meanwhile, the firm approaches you with another order from a new buyer for Rs.50 lacs and request you for another

EPC limit. Deliberate on the case.

Answer-

We have to reckon with the reasons for delay/nature of discrepancies in the

overdue bill _ The availability of ECGC cover for the exporter may be considered._ The cost economics of the new order, credentials of the overseas buyer to be ascertained.

_ The exporters‟ past track may also be kept in mind.

_ The overall risk assessment and mitigating factors such as availability of

sufficient collateral security, ECGC coverage etc. will be considered.


249

46. Mr. Menon and his wife are joint hirers of a safe deposit locker for the last 10 years. Mr. Menon has fixed deposits to the tune of Rs.1 lacs with the branch and is a very demanding customer. Mrs. Menon comes to the branch in an agitated mood one day and says that she and her husband are going to be separated and whether her deposits are safe with the bank. Mr. Menon drops into the branch in the afternoon with a request to preclose his deposit for Rs. 7 lacs, which is in the name of both he and his wife (E or S). He says that he needs the money urgently for his business commitments. How will you deal with the situation?

Answer-

Premature closure of term deposits in joint names can be done only with the

approval of all the joint account holders. Hence the customer‟s request should be

tactfully declined. It must be explained to him that as per Bank‟s rules and

regulations, his wife‟s discharge is also required on the TDR receipt. The Bank

should be more cautious since there is a dispute between the husband and wife.

But the customer is a longstanding customer of high value connection. Hence it

should be done tactfully.

47. One of the drafts issued and sent by you to LIC for Rs.4,600/- under standing

Instruction of your customer, was not received by LIC. The customer refuses to

give an indemnity and holds the Bank responsible for any consequences. What is

the course of action?

Answer-

The Bank, while executing Standing Instruction, of the customer, acting as an

agent, should show due diligence and prudence. If the Bank has taken

reasonable care in the issuance and dispatch of the draft, the responsibility

arising from the agency (executing SI), is discharged. Bank has made a

„constructive delivery‟ and is not responsible, if it is miscarried in dispatch.

Legally, the principal (the account holder) is bound to face the consequences

himself and execute an indemnity. On the other hand, the beneficiary of the draft,

LIC, have not received the draft, they can, at best, give a letter stating that they

have not received the draft. Since the draft, in question, is in favour of LIC, in the

interest of the good-customer relationship, the Bank may issue a duplicate and

request LIC to return the original if and when received.

48. Shri Dinesh Kumar is a guarantor for Shri Praveen Chand. Shri Praveen Chand

had borrowed Rs. 2 lacs from your branch. The present outstanding is Rs.

1,85,000/-. Shri Dinesh Kumar gave a notice to the Bank saying he is no more a

guarantor for Shri Praveen Chand. What are the options open to the bank as

against the borrower and the guarantor?


250

Answer-

As per section 130 of the Indian contract Act provides that a continuing

guarantee may at any time be revoked by the surety, as to the future

transactions, by notice to the creditor. In the present case, the guarantor is still

liable to the bank for the loan outstanding as on the date of notice. He is,

however, not liable for any future transactions in the account. The bank has the

option of obtaining another guarantor of sufficient worth, or demands the money

due from the guarantor immediately on receipt of notice and stop operations in

the account.

49. Shri Sajjan Singh enjoys a cash credit hypothecation limit of Rs. 3 lacs from your

branch. Shri Madan Lal furnished guarantee for the cash credit limit granted to

Shri Sajjan Singh. The borrower applied for conversion of the existing cash credit hypothecation limit of Rs. 3 lacs into a clean cash credit limit. The bank agreed to the proposal and the limit was accordingly converted. After some time, when the borrower failed to pay the bank‟s dues despite repeated requests, the bank decided to file a suit against the borrower and the guarantor. The guarantor pleaded that he is not obliged to pay the bank‟s dues. However, the bank filed a suit against the borrower and the guarantor. The guarantor pleaded in the court that he is not obliged to pay to the bank on account of default by the borrower because the bank changed the facility from secured limit to clean limit. In the light of this argument of the guarantor, discuss the position of the guarantor.

Answer-

In terms of Section 133 of the Indian Contract Act, any variance made without the surety‟s consent, in the terms of the contract between the principal debtor and the creditor, discharges the surety as to transactions subsequent to the variation.

As such, in the event of the guarantor being unaware of the status of the cash

credit limit from a hypothecation limit to a clean limit, the guarantor stands

discharged from the date of such conversion of the credit facility. However, he is still liable for the outstandings in the a/c prior to the date of such conversion.

50. An illiterate person visits your branch for opening a SB account with chequebook

facility. He offers to deposit Rs. 2,00,000/- in the new account. His determined

bid is to make you agree to open the account or he would walk away without

opening the account. How will you tackle him?


251

Answer-

In case the illiterate person insists on having a cheque book, we shall advise him

(i) To open the account as a joint account with a person who is a literate person.

All formalities connected with opening an account in joint names will have to be completed.

(ii) Alternatively, the illiterate person will be advise to grant registered power of

attorney in favour of third person of his confidence / trust (preferably near relative/ legal heir).

51. A post dated cheque issued by your customer has been paid at your branch by oversight. Subsequently a cheque for Rs. 500/- is received in clearing. Funds are not adequate in the account to meet the payment of the cheque. How will you deal with the situation?

Answer-

Bank should hounour the cheque received in clearing.

Legal Aspect : Payment of a postdated cheque is not a payment in due course.

Hence the bank will be liable. The cheque for Rs. 500/- should not be

dishonoured due to insufficiency of fund.

The bank should proceed as under :-

a) Obtain the drawer‟s confirmation in regard to the payment of the postdated

cheque.

b) Pay the cheque for Rs. 500/- by allowing an OD for which no interest should

be charged.


252

SME ASSET PRODUCTS-MSMED ACT

1.As per notification issued by the Ministry of MSME, the term “Micro Enterprises” has to be used in place of …………………………..in the statutes /rules/notifications /guidelines/instructions etc. and in all other documents concerned.

A Tiny Enterprises B Industries C Units D All of these

2. Recently IBA approved a common loan application form for upto the amount of Rs. ……..for all MSME Units.

A. 2.00 Cr B. 1.00 Cr C. 50.00 lacs D. 25.00 lacs

2. An Industrial enterprise is known as Micro enterprise if the original investment in plant and machinery is

a) upto Rs 25 Lakhs

b) more than Rs 25 L & Upto Rs 5 Crores

c) More than Rs 5 Crs & Upto Rs 10 Crores

d) upto Rs 10 Lakhs

3. An Industrial enterprise is known as Medium enterprise if the original investment in plant and machinery is

A) upto Rs 25 Lakhs B) more than Rs 25 L & Upto Rs 5 Crores C) More than Rs 5 Crs & Upto Rs 10 Crores D) upto Rs 10 Lakhs

4. A Service enterprise is known as Small Enterprise if the original investment in equipments is

A) upto Rs 25 Lakhs A) more than Rs 10 L & Upto Rs 2Crores B) More than Rs 2Crs & Upto Rs 5 Crores C) upto Rs 10 Lakhs

KEY – MSMED

1 D 2

B 3 a 4 C 5

B


253

SME DOCUMENTATION

1. With regard to documentation, SME 3 refers to …

a) Agreement of Loan-cum-Hypothecation

b) Guarantee Agreement c) Supplemental Document

d) Arrangement Letter

2. The form to be obtained for Agreement of Loan-cum-Hypothecation for SME is …

a) SME 2 b) SME 4

c) SME 5

d) SME 3

3. What is the form to be obtained with regard to confirmation of EM under SME documentation?

a) SME 4 b) SME 6 c) SME 7

d) SME 8

4. For extension of EM underSME documentation, what is the form to be used?

a) SME 4 b) SME 6 c) SME 7 d) SME 8

5. SME 9 refer to -------------- in SME Documentation.

a) Deed of further mortgage b) Revival letter

c) Deed of mortgage d) memorandum of extn of mortgage

6. Revival letter is obtained under SME documentation by using the form ….

a) SME 11 b) SME 9

c) SME 10 d) SME 8

7. The Letter of Arrangement for SME units is given in the form of …..



254

8. While obtaining the SME documentation, the form used for obtaining the

particulars of assets is …..

a) SME 2 A

b) SME 2 c) SME 5

d) SME 3

9. What is the form used for obtaining Deed of further mortgage in SME Documentation?

a) SME 11 b) SME 9

c) SME 10 d) SME 8

10. Link letter under SME documentation is obtained by using the form …..


11. In place of SME 13, what is the form used by Branches at present?

a) Link letter b) Arrangement letter

c) valuation report d) Title Investigation Report

KYE – SME Documentation

01 b 02 a 03 b 04 c 05 c

06 a 07 a 08 a 09 c 10 b

11 d


255

ArtisanCreditCard

1.Which of thefollowingstatementiscorrectinrespectoffinancing underArtisanCreditCard?

(a)Artisansinthehandicraftssectornotcoveredbyanyothergovernment scheme.

(b)MinimumScoreis60% (c)PreferencetotheartisansregisteredwiththeDevelopment

Commissioner(Handicrafts) (d)Alltheabove

2.What is the maximum loan under Artisan CreditCard?

(a)Rs2lacs (b)Rs1lac (c)Rs5lacs (d)Noneoftheabove

3. Whatistherepaymentperiod,forthe loan component used for purchase of

tools,etc.inArtisanCredit Card?

(a)36months (b)48months (c)60months (d)Noneoftheabove

4. WhatareallthefacilitiesthatcanbesanctionedunderArtisanCredit Card?

(a)CashCredit

(b)TermLoan

(c)DemandLo

an

(d)Anyfacility

ANSWERS -ArtisanCreditCard

01 d 02 a 03 a 04 a


256

SME CREDIT CARD

1. Which among the following with a satisfactory track record for the last two years are eligible for availing loan under SME Credit Card scheme?

a. Small industrial units & Small retail traders

b. Professionals & self- employed persons

c. Small business enterprises & Transport operators

d. All of the above

2. What is the Maximum quantum of finance under SME Credit Card

scheme?

a. Rs. 5 lacs

b. Rs.10 lacs

c. Rs.20 lacs

d. Rs.50 lacs

3. What is the margin stipulated for loans under SME Credit Card scheme?

a. 20%

b. 15%

c. 10%

d. 25%

4. Collateral security to be obtained for loans sanctioned for SSI units

under SME credit card scheme is

a. No collateral to be insisted upon.

b. For loans more than Rs.25000/- charge over movable /immovable

property

c. For loans more than Rs.25000/- -third party guarantee only

d. For loans more than Rs.25000/- charge over movable /immovable

property/third party guarantee

5. Collateral security to be obtained for loans sanctioned for SBF units

under SME credit card scheme is

a. No collateral to be insisted upon for loans more than Rs.25,000/-

b.For all loans charge over movable /immovable property

c. For loans more than Rs.25000/- charge over movable

/immovable property/third party guarantee

e. None of the above


257

6. The Term Loan component in SMECC should be repayable in a maximum of _ years in suitable instalments.

a. 05

b. 06

c. 07 d. 03

7. In SME Credit Card Scheme, the working capital component should be reviewed every year provided the credit summation is not less than 50% of

the projected turnover. If the credit summation is less than 50%, then _

a. Advance has to called off immediately b. A letter has to be sent to the unit requesting them to route through

the sale proceeds

c. A repayment schedule should be fixed for the out standings in

Suitable monthly instalments

d. Borrower to be asked to close the account without further delay

8. To qualify under SME credit card scheme the unit should score a minimum

of ___ %.

a. 50% b. 60% c. 45%

d. 70%

9. To qualify under SME credit card scheme the unit should score _ Marks

a. 36 b. 40 c. 56 d. 60

10. Under SME credit card scheme for small business, retail traders, etc., the

working capital assessment will be made as under

a. 20% of their annual turnover OR 20% of turnover of the last 12

months in their accounts, whichever is lower

b. 100% of gross annual income as declared in their income tax return c. 20% of their annual turnover OR 20% of turnover of the last 12

months in their accounts, whichever is higher



258

11. The limit sanctioned under SME credit card is valid for _ subject to annual review


c. 1 year d. 3 years

12. Under SME credit card scheme for self- employed and professionals, the

working capital assessment will be made as under

a. 20% of their annual turnover OR 20% of turnover of the last 12

months in their accounts, whichever is lower

b. 100% of gross annual income as declared in their income tax return

c. 20% of their annual turnover OR 20% of turnover of the last 12 months in their accounts, whichever is higher

d. As per Nayak Committee norms ie.,20% of annual turnover

ANSWERS - SME CREDIT CARD

01 d 02 b 03 a 04 a 05 c

06 a 07 c 08 b 09 a 10 c

11 d 12 b

SME SMART SCORE 1. What is the Minimum and Maximum quantum of finance for manufacturing

unitsunder SME Smart Score scheme?

a. Rs. 5 lacs and Rs.50 lacs

b. Rs.10 lacs and Rs.50 lacs

c. Rs 5lacs and Rs.25 lacs

d. Rs.3 lacs to Rs.30 lacs

2. What is the Minimum and Maximum quantum of finance for units engaged

in trade& services under SME Smart Score scheme?

a. Rs. 5 lacs and Rs.50 lacs

b. Rs.10 lacs and Rs.50 lacs

c. Rs 5 lacs and Rs.25 lacs

d. Rs.3 lacs to Rs.30 lacs

3. The quantum for working capitalloan for units engaged in trade&

servicesunder SME Smart Score scheme is assessed as _% of annual

turnover subject to maximum of Rs.25 lacs. a. 20% b. 15%

c. 10% d. 25%

4. Thequantum for working capital loan for units engaged in manufacturing

under SME Smart Score scheme is assessed as _% of annual turnover subject to maximum of Rs.50 lacs.?

a. 20% b. 15%

c. 10% d. 25%

5. Thequantum of finance forTermloans, under SME Smart Score scheme is

_ % of project cost.

a. 75% b. 67% c. 60% d. 80%

6. The margin stipulated for Term loans for units engaged in manufacturing /

trade/ services, under SME Smart Score scheme is % of project cost.

a. 25% b. 15% c. 33%

d. 35%

R2S – 2015 PROMOTION EXAM STUDY MATERIAL

7. What is the margin stipulated for working capital component under SME

Smart Score scheme?

a. 20% b. 15% c. 10%

d. 25% 8. Under SME Smart Score schemethe Working Capital loans can be sanctioned for _ years subject to annual review,specifying the limit requirement for each year.

a. One

b. Two c. Three

d. Five

9. In SME Smart Score schemethe Working Capital loans where two different limits are sanctioned for two years the documents are to be obtained for

a. Lower of the two limits

b. Average of the two limits c. Higher of the two limits

d. Sum of the two limits

10. To be eligible under the scheme, the age of the chief promoter/executive should be _ to years of age.

a. 18 to 65 b. 21 to 70

c. 18 to 70 d. 21 to 65

11. Under SME Smart Score schemeWorking Capital loans can be renewed if

credit score is _ and aboveout of 60 under business score

a. 25 b. 30 c. 35

d. 37

12. Under SME Smart Score scheme, to be eligible for loan, the applicant must

obtain a minimum overall score of 60% with a minimumof _ % under each sub-

head like Personal details, Business details andcollateral details (except in cases where collateral should be asked as perBank‟s norms, where the

minimum marks will be nil). a. 50% b. 60% c. 35%

d. 40%

13. The working capital limit sanctioned under SME Smart Score scheme is to

be renewed every_

a. 2 years

b. 5 years c. 1 year

d. 3 years

years subject to annual review

14. Maximum tenure of the term loan sanctioned underSME Smart Score schemeis

a. Not more than 7 years excluding moratorium not exceeding 6 months

b. Not more than 7 years excluding moratorium not exceeding 3 months

c. Not more than 5 years excluding moratorium not exceeding 6 months

d. Not more than 5 years excluding moratorium not exceeding 3 months

15. In SME Smart Score schemethe maximum score awarded for Personal

details, Business details and Collateral conditions are ----- , ----- & -------

a. 15,25 & 10 b. 30,50 & 20 c. 60,100 & 40

d. 70,20 & 10

16. To be eligible under SME Smart Score schemethe unit should get a

minimum score of 60% with a minimum marks to be scored in personal details, Business details and Collateral conditions are ----- , ----- & -------

a. 15,25 & 10 b. 30,50 & 20 c. 60,100 & 40

d. 70,20 & 10

ANSWERS - SME SMART SCORE

01 a 02 c 03 b 04 a 05 b

06 c 07 d 08 b 09 c 10 a

11 c 12 a 13 a 14 c 15 b

16 a


SME CREDIT PLUS 1. Which of the following is/ are the target group can be considered under

SME credit plusScheme

a. Existing SSI borrowers with excellent track record

b. standard assets for the past two consecutive years c. new borrowers

d. a&b or c

5. Which of the following statement is/are true about SME credit plusScheme a. Units with CRA Rating of SB 9 & above and / or standard assets for the past two years

b. the purpose is to meet bulk orders, repairs to machinery

c. the purpose is to make tax payments, Any other contingency d. All of the above

3. The quantum of finance under SME Credit plus is

a. 20% of aggregate working capital limit subject to a maximum of Rs.25lacs

b. 20% of aggregate working capital limit subject to a maximum of Rs.10lacs c. 15% of aggregate working capital limit subject to a maximum of Rs.25lacs

d. 15% of aggregate working capital limit subject to a maximum of Rs.10lacs

4. The margin to be maintained by the borrowing unit under SME credit plus is

a. Not applicable

b. 10%

c. 20% d.25% 5. The primary security forSME credit plus will be

a. book debts

b. Stocks c. Both a & B

d. Nil

6. Which of the following not true about SME credit plusscheme

a. type of facility is clean cash credit b. rate of interest is as applicable for working capital limits c. Each amount of withdrawal should be repaid within 2 months and

there should be a gap of 15 days between the last date of repayment of

outstandings and the next withdrawal

d. Cheque book will be issued

ANSWERS - SME CREDIT PLUS

01 d 02 d 03 a 04 a 05 d

06 d

STAND BY LINE OF CREDIT (SLC)

1. The minimum CRA rating required for eligible to avail SLC is ….

a) SB 7 b) SB 3 c) SB 4 d) SB 10 2. SLC can be given to the eligible borrowers under the facility of

a) FB only b) NFB only

c) Either a or b or both d) Either a or b only

3. The maximum loan that can be sanctioned to a unit under SLC is Rs.….. Cr a)10 b)5 c)20 d)50

4. For sanctioning under SLC facility, the maximum quantum that can be

sanctioned to a unit with respect to its working capital limit is …

a) 20% of FBWC facility

b) 20% of total WC facility c) 15% of total WC facility d) 15% of FBWC facility

5. The minimum margin required for SLC is ….

a) 25% uniform for SLC b) 20% uniform for SLC

c) as per the terms of the original limits of WC facility d) 30% uniform for SLC

6. The rate of interest to be charged for SLC is….

a) the applicable CC rate b) one step above the applicable CRA c) one per cent higher than that applicable for CC facility

d) a separate CRA for SLC 7. The maximum tenor of SLC loan as per sanction of SLC is …….

a) 2 months b) 3 months

c) 6 months d) 9 months

8. If SLC is sanctioned to a unit, then how many times can that unit avail SLC during its validity?

a) 6 times b) 12 times

c) No such restriction d) 9 times

KEY - STAND BY LINE OF CREDIT (SLC)

01 d 02 c 03 c 04 C 05 c

06 c 07 b 08 c


SME Collateral free loan

1. SME Collateral free loan is for exposure to the SME borrowers a. Rs 10.00lacs and above irrespective of the amount

b. RS 10.00 lacs above and up to Rs1.00 crores c. Rs 1.00 crores and above

d. Maximum Up to Rs 100 lacs

2. The submission of stock statement for loans up to Rs 25.00 lacs under SME Collateral free loan is

a. Once in a month b. Once in a quarter

c. Once in Six months d. Once in a year as on 28th February

3. The submission of stock statement for loans above Rs 25.00 lacs

underSME Collateral free loan is

a. Once in a year as on 28th February

b.Once in a month c. Once in Six months

d. Once in a Quarter

4. The maximum repayment for termloan under the SME Collateral free loan is

a. Eight years including moratoriumperiod not exceeding 6months – 1 year b.Six years including moratoriumperiod not exceeding 6months – 1 year c.Five years including moratoriumperiod not exceeding 6months – 1 year

d.7 years including moratoriumperiod not exceeding 6months –1 year

ANSWERS -SME Collateral free loan

01 d 02 b 03 b 04 d

OPEN TERM LOAN

1. The minimum current ratio for sanctioning of Open Term Loan is …

a) 1.33

b) 1.00 c) 1.20

d) no minimum stipulated 2. What is the maximum loan ceiling for Open Term Loan?

a) Rs.250 lacs

b) Rs.100 lacs c) Rs.200 lacs

d) Rs.300 lacs

3. The minimum margin requirement for open term loan….

a) 20% b) 15% c) 25%

d) 10% 4. What is the validity period of sanction of open term loan?

a) 24 months from the date of sanction

b) 12 months from the date of 1st

date of disbursement

c) 12 months from the date of sanction d) No such restriction

5. The maximum repayment period allowed for open term loan is n o t t o

e x c e e d ….

a) 2 years

b) 3 years c) 5 years

d) 4 years

6. Open Term Loan is applicable for which of the following sectors?

a) Manufacturing sector

b) Service sector c) both (a) and (b)

d) no such restriction

7. Maximum number of disbursements allowed in open term loan is…

a) only once

b) 3 times c) 5 times

d) No such restriction 8. The minimum eligible CRA rating for availing open term loan is …

a) SB 4 or ECR BB

b) SB 2 or ECR AAA c) SB 10 or ECR B+

d) SB 6 or ECR of BBB


KEY - OPEN TERM LOAN

01 b 02 a 03 d 04 c 05 b

06 c 07 d 08 d

ConstructionEquipmentloan

1.What is the minimum loan under Construction Equipment loan ?

(a)Rs10Lacs (b)Rs25Crores (c)Rs25Lacs (d)Rs10Crores

2.WhatistheminimumcreditratingconditiontosanctionCEL?

(a)SB1 (b)SB2

(c)SB8 (d)SB4

3.WhatareallthepurposeseligibleforCEL?

(a)Purchaseofnewmachines (b)Purchaseofnewequipments

(c)Purchaseofnewvehicles (d)Any of theabove

4. Whatisthemaximumnumberofdisbursementthatcanbemadein CEL?

(a)12 (b)6

(c)3 (d)None

5. Whatisthemaximumperioduptowhichthedisbursementcanbemade inCEL?

(a)12months (b)6months (c)3months (d)None

6.WhatistheprepaymentchargeforloansunderCEL?

(a)Nil (b)1% of the prepaid amount (c)2% of the outstanding amount

(d)2% of the prepaid amount

7.WhatistheconditionforeachdisbursementforloansunderCEL?

(a)Notlessthan10%ofloanamount (b)Notmorethan20%ofloanamount

(c)Notmorethan10%ofloanamount (d)Notlessthan20%ofloanamount


7. For what purpose SMEConstruction Equipment Loan canbe sanctioned?

a) For purchase of constructionmaterials – cement, steel, sand, bricks, timber etc.

b) For purchase of construction equipment – Loaders, Excavators, JCB etc.

c) For purchase ofland & buildings. d) None of these.

8. What istheloanamount that canbesanctionedunderSME Construction

EquipmentLoan in metro cities?

a) Min.Rs.5.00Lacs– MaxRs.100.00 Lacs

b) Min. Rs.10.00 Lacs – Max Rs.100.00 crores c) Min. Rs.25.00 Lacs -Max Rs.50.00 crores

d) Min. Rs.10.00 Lacs - Max Rs.500.00 Lacs

9. What is the repayment period for SME Construction Equipment Loan?

a)In EMIs –Upto 2 years including moratorium period of 3 months. b)In EMIs –Upto 3 years including moratorium period of 3 months. c) In EMIs–Upto 4 years including moratorium period

of 3 months. d)In EMIs –Upto 5 years including

moratorium period of 3 months.

10. What is thenature offacilityis sanctionedunder SMEConstruction EquipmentLoan?

a) Cash credit b) Term Loan

c) Working capital Demand Loan d) Any kindoffacility as per borrower‟s need.

11. Whatisthe penal rate ofinterestcharged incase of defaultunderSME

Construction EquipmentLoan for borrowers with CRA ratings 1-5?

a) 2.00% of the default amount

b) 1.00% of the default amount c) 1.00% of the out standing amount d) 2.00%of the out standing amount

12. Whatis the CRAratingbelow whichSME Construction EquipmentLoan will notbesanctioned?

a) SB 10 b) SB 9

c) SB 8 d) SB 7

13. What is the minimum margin fixed under SME ConstructionEquipment

Loan?

a) 25% b) 20% c) 15%

d) 10% 14. Whatisthe collateral securityto be offered under SME ConstructionLoan? a) Collateral Securityis waived

b) Hypothecation of other unencumbered security or mortgage of propertiesat-least for 10% of the limit

c) Hypothecation of other unencumbered security or mortgage of propertiesat-least for 25% of the limit

d) Hypothecation of other unencumbered security or mortgage of propertiesat-least for 33% of the limit

15. What isthe rule regarding insuranceof machinery under SME Construction Loan?

a) 110% of the loan limit

b) Insurancewaived c) Comprehensive insurance withendorsement in favour ofSBI

on the policy as “Loss Payee” d) Comprehensive insurance inthename of borrower.

ANSWERS - ConstructionEquipmentloan

01 c 02 c 03 d 04 d 05 a

06 d 07 a 08 b 09 c 10 b

11 b 12 b 13 c 14 c 15 c


Fleet Finance Scheme

1. Minimum and maximum loan amount that may be sanctioned under “SBI Fleet Finance Scheme” are.........................and.......................respectively

A)Rs 10.00 Lacs; Rs 1.00 Crore B)Rs 25.00

Lacs; Rs 5.00 Crore C)Rs 50.00 Lacs; normally Rs.10 Cr

and. Any limit with due approval

D) No ceiling

2. Drawals against aggregate limit sanctioned for purchasing vehicles under

“SBI FleetFinance Scheme” can be permitted upto.................….......................from the date ofsanction, beyond which

unutilized limit would lapse

A)3 months B) 6 months C) 9 months D) 12 months

3. The score obtained by the borrower should be minimum of ……% out of the total marks for eligible under Fleet Finance.

A)33% B) 40%

C)60% D) 35%

4. Loan sanctioned under “SBI Fleet Finance Scheme” is to be repaid in............ forborrowers having scores 60% and above in „Credit Scoring Matrix‟

A) 48 months B) 60 months

C) 66 months D)72 months

5. Normally minimum tangible collateral security that should be taken for Loan above Rs1.00 Crore sanctioned under “SBI Fleet Finance

Scheme”is............including unencumbered vehicles in the existing fleet.

A)10 percent B) 15 percent C) 20 percent D) 25 percent

6. The minimum experience required for a borrower to be eligible for SBI Fleet

finance is ……….

A) 3 years B)5 years

C) 2 years D) 4 years

7. Prepayment penalty for SBI Fleet finance if the loan is pre-closed within 2 years, it is ………% of outstanding

A) 1% B) 2%

C) 3% D) 4%

8. Prepayment penalty for SBI Fleet finance if the loan is pre-closed beyond 2

years, it is ………% of outstanding

A) 1% B) 2%

D) 3% D) 4%

9. As per the revised instructions, the commitment charges [for beyond 2

months] to be recovered from the borrowers of fleet finance is …….

A) 1% B) 2%

C) Nil D) 3%

10. Minimum average gross DSCR required for the fleet finance accounts is

…………..

A) 1.75 B) 1.5 C) 1.4 D) 2

KEY - Fleet finance scheme

1 C 2 B 3 D 4 C 5 C

6 B 7 D 8 B 9 C 10 B


SBI ASSET BACKED LOAN (ABL)

1.“SBI Asset Backed Loan” provides.................................facility.

A) Cash Credit B) Working Capital Demand Loan

C) Dropline Overdraft D) All of these

2. Minimum loan amount that may be sanctioned to eligible borrower under

“SBI Asset Backed Loan” is …................... A) Rs 10.00 Lacs B) Rs 25.00 Lacs

C) Rs 50.00 Lacs D) Rs 100.00 Lacs

3. Maximum loan amount that may be sanctioned to eligible borrower under

“SBI Asset Backed Loan” is …................... (permission has to be sought from

WBCC I forhigher loan) A) Rs 5.00 crore B) Rs 10.00 crore

C) Rs 20.00 crore D) Rs 25.00 crore

4 Property that is going to be mortgaged under “SBI Asset Backed Loan” needs to bewithin a radius of …....................from the Branch, wherein account

is maintained. A) 10 km B)15 km

C) 20 km D) 25 km

5. Drop-line Overdraft Limits may be sanctioned under “SBI Asset Backed Loan” for period of 12 months to …..................... with either Equated Reduction in limit or customized reduction in limit depending upon the cash accruals.

A) 60 months B)72 months

C) 84 months D) 96 months

6. Under “SBI Asset Backed Loan”, maximum permissible amount against the securitiesi.e. LTV for loans uptoRs 10 Crores is …................ of the realizable

value of property.

A) 60 percent B) 65 percent

C) 70 percent D) 75 percent

7. Fresh valuation of property under “SBI Asset Backed Loan” is to be carried out every….................and any shortfall has to be topped up.

A) 2 years B)3 years

C) 4 years D) 5 years

8 Submission of Stock Statements under “SBI Asset Backed Loan” Is

...................and ................... quarter of the financial year.

A) First; Last B) Second; Last

C )Second; Third D) Third; Last

9. Obtention of ECR is optional for customers under ABL & ABL CRE

uptoRs……..

A)50 Cr B)10 Cr C) 200 Cr D)No such exemption

10. Prepayment penalty for ABL is now charged at the rate of ………

A) 2% of operating limit B)4% of operating limit C) 2% of outstanding D)4% of outstanding

11. Penal Interest rate of __% charged if overdue more than ---- days for ABL

A) 1% : 90 days B)1%: 30days C) 2%; 60 days D)1.5%;45 days

12. In ABL inspection of Property and Activity/Unit to be carried out once in a _____

A) Month B) Quarter C) Half-year D) Year

KEY -SBI ASSET BACKED LOAN (ABL)

1 C 2 A 3 C 4 D 5 D

6 A 7 B 8 B 9 B 10 A

11 B 12 C


SBI ASSET BACKED LOAN FOR COMMERCIAL REAL ESTATE

1..“SBI Asset Backed Loan for Commercial Real Estate” the type of loan is ...........

B) Cash Credit B) Working Capital Demand Loan

C)Dropline Overdraft D) All of these

2. .Minimum loan amount that may be sanctioned to eligible borrower under “SBI Asset Backed Loan for Commercial Real Estate” is ….................

A)Rs 10.00 Lacs B)Rs 25.00 Lacs C)Rs 50.00 Lacs D)Rs 100.00 Lacs


“SBI Asset Backed Loan for Commercial Real Estate” at Tier I Branch is

…...............

A)Rs. 5 Crores B) Rs.10 Crores C) Rs.20 CroresD) Rs.50 Crores

4. Maximum loan amount that may be sanctioned to eligible borrower under “SBI Asset Backed Loan for Commercial Real Estate” at Tier II, III Branch

…...............

A)Rs. 5 Crores B). Rs.10 Crores C). Rs.20 Crores D). Rs.50 Crores


“SBI Asset Backed Loan for Commercial Real Estate” at Tier IV,V,VI Branch

…............

A)Rs. 5 Crores B). Rs.10 Crores

C). Rs.20 Crores D). Rs.50 Crores

6. LTV % of Immovable property under ..“SBI Asset Backed Loan for Commercial Real Estate” is-----% of realizable value.

A). 50% B).60% C).70% D).75%

7. Maximum Moratorium under the under “SBI Asset Backed Loan for Commercial Real Estate” scheme should not be more than ----- Months

A). 6 B).12 c).18 D).24

8. Limits under “SBI Asset Backed Loan for Commercial Real Estate” dropline overdraft facility can be sanctioned from _ _ Months to _ Months.

A). 12, 96 B).6, 84 C).12, 84 D).6, 96

9. The margin on project cost for fixed asset requirement. under “SBI Asset Backed Loan for Commercial Real Estate” is

A).20% b).25% C).33% D).40%

10. Pre-payment penalty for loans under “SBI Asset Backed Loan for

Commercial Real Estate” is

A).NIL B).1% of the limit C). 2% of the limit D).2% of the Outstanding

11. Obtention of ECR is mandatory for customers under ABL & ABL CRE

above

Rs…….. Cr

A)25 B)75 C) 10 D)50

KEY -SBI ASSET BACKED LOAN FOR COMMERCIAL REAL ESTATE

1 C 2 A 3 D 4 C 5 A

6 B 7 C 8 A 9 B 10 C

11 C


CGTMSE

Extent of Guarantee Cover available: (w.e.f. 16.12.2013 ).

Category Maximum extent of Guarantee where credit facility is

Upto Rs.5 lakh Above Rs.5 lakh

upto Rs.50 lakh

Above Rs.50 lakh

upto Rs.100 lakh

Micro Enterprises 85% of the

amount in default subject

to a maximum of Rs.4.25 lakh

75% of the

amount in default subject to a

maximum of Rs.37.50 lakh

50% of amount in

default subject to maximum of Rs.50

lakh

Women

entrepreneurs/ Units located in North East

Region (incl. Sikkim) (other than credit

facility upto Rs.5 lac to micro enterprises)

80% of the amount in default subject to a maximum of Rs.40 lakh

50% of amount in default subject to maximum of Rs.50

All other category of borrowers

75% of the amount in default subject to a maximum of Rs.37.50 lakh

50% of amount in default subject to

maximum of Rs.50 lakh

2. For credit guarantee claims of more than…………….., copies of appraisal / sanctionmemorandum, sanction letter evincing acceptance by borrower, recall notice, legaldocuments are required to be submitted to CGTMSE for detailed

verification. A)Rs 10.00 Lacs B)Rs 20.00 Lacs C)Rs 25.00 Lacs D)Rs 50.00 Lacs

3. Guarantee fee for for loan account sanctioned under CGTMSE scheme is to be paidwithin …......from the date of “Demand Advice Notice(DAN)” generated by CGTMSE

A) 15 days ` B) 30 days

C) 45 days D) 60 days

4. Bank is required to lodge claim with CGTMSE in respect of credit facility

within amaximum period of …................... from date of NPA, if NPA is after

lock-in period inrespect of the loans covered by CGTMSE before 1st January,

2013.

A) Six months B) One year

C) Eighteen Months D) Two years

KEY – CGTMSE

1 B 2 B 3 B

„TEQUP‟

(TEchnology and Quality UPgradation Support to MSMEs) Scheme

1. The objective of TEQUP Scheme is a) To encourage MSMEs in adopting Energy Efficient Technologies

b) To encourage large corporates in adopting Energy Efficient Technologies c) To disseminate Technical Efficiency and Quality Up gradation in Public

Sector Undertakings d) None of the above

2. Capital Subsidy available under TEQUP Scheme is a) 20% of the cost of project

b) 25% of the cost of project c) 17.5% of the cost of project d) 33.33% of the cost of project

3. Ceiling on Capital Subsidy under TEQUP Scheme is Maximum Rs.

a) Rs.5 lacs b) Rs.10 lacs c) Rs.25 lacs d) Rs.33 lacs

KEY

„TEQUP‟ Scheme

DRI scheme 1. What is the maximum family income per annum, for a beneficiary belonging

Urban/Semi-urban areas to be eligible under DRI Scheme?

a. 12000/- b. 18000/- c. 24000 /- d. 36000 /-

2. What is the maximum irrigated land to be eligible under DRI scheme?

a.2acres b.1acres c.3acres 4.NIL

1 a 2 b 3 b


3. What is the maximum loan under DRI scheme?

a. 20000

b. 15000 c. 25000 d. 50000

4. What is the maximum repayment period for loan under DRI?


c. 5 years d. 2 years

5. What is the maximum family income per annum, for a beneficiary belonging Rural area to be eligible under DRI Scheme?

a. 12000/-

b. 18000/- c. 24000 /- d. 36000 /-

KEY – DRI Scheme

01 c 02 b 03 b 04 c 05 b

WEAVER‟S CREDIT CARD SCHEME 1. Weaver‟s credit card scheme is mooted by

a. The ministry of Textiles b. Department of Financial services

c. Both a & b d. None of these

2. Which of the following Govt. Departments will act as as sponsoring /

monitoring / implementing agency for the scheme and will also act as

one point contact

a. Commissioner / Director (Handlooms & Textiles) in-charge in the StateGovernment.

b. Office of the Development Commissioner for Handlooms. c. Assistant Director, Handlooms or District Industries Centre in the

District concerned.

d. All of these

3. The Weaver‟s Credit Card will be issued for an upper limit of up to

Rs. per individual weaver.

a. Rs.5 lacs

b. Rs.3 lacs c. Rs.2 lacs

d. Rs. 1 lac 4. The Weaver‟s Credit Card would be valid for __ years

a. 2 years b. 3 years c. 5 years d. one year

5. UnderWeaver‟s credit card scheme, Margin money support by the

Govt.ofIndia to the eligible borrower @20% of the project cost,

subject to maximum of Rs.___ per weaver

a.Rs.4000/- b.Rs.4200/- c.Rs.7200/- d.Rs.10000/-

6. UnderWeaver‟s credit card scheme, the interest subvention extended

by the Govt. of India is capped at _ % on bank loans

a. 9%

b. 7% c. 5%

d. 3%


7. The term loan sanctioned under Weaver‟s credit card scheme is

repayable in _ _ years

a. 2 years

b. 3 years c. 5 years

d. one year

8. UnderWeaver‟s credit card scheme, the payment of CGTMSE Guaranteefee and annual service charges for first 3 years will be paid In advance by

a. the borrower

b. the bank by debiting 50% of such fee from borrowers account c. the bank d. The Development Commissioner (Handlooms)

9. The margin for loans up to Rs.25000/- UnderWeaver‟s credit card

Scheme is

a. Nil

b. 10% c. 15%

d. 20% 10. The margin for loans above Rs.25000/- UnderWeaver‟s credit card Scheme

is

a. Nil b. 10%

c. 15% d. 20%

ANSWERS – Weavers‟ Credit Card Scheme

01 c 02 d 03 c 04 b 05 d

06 b 07 b 08 d 09 a 10 d

“CAR LOAN TO SME UNITS”

1. What is the minimum Gross Taxable Income for availing SME car loan as

per last year‟s IT return?

a) Rs.1 lac


d) Rs.6 lacs

2. What is the maximum loan ceiling under SME car loan for new vehicles?

a) Rs.15 lacs


d) No upper ceiling

3. The EMI/NMI % which should not exceed for availing SME new car loan?

a) 40%

b) 50% c) 60% d) 70%

4. What is the maximum quantum eligible with regard to NAI for SME car loan for new vehicles?

a) 2.5 times b) 2 times

c) 1.5 times d) No such limitation

5. What is the minimum margin% for SME car loans (new vehicles)?

a) 10% of the on road price b) 15% of the on road price c) 10% of the cost of the vehicle

d) 15% of the cost of the vehicle

6. What is the maximum permissible repayment period for SME car loan (new vehicle)?

a) 5 years b) 7 years

c) 8 years d) 6 years


7. Maximum processing fee cap for SME car loan is

a) Rs.10,200/- b) Rs.5,100/- c) Rs.1,020/- d) No such limitation

8. Maximum loan amount for SME car loan (used vehicles) is

a) Rs.10 lacs b) Rs.15 lacs

c) Rs.20 lacs d) Rs.25 lacs

9. The maximum permissible age of old vehicles for financing under SME car loan for used vehicles is



10. For take-over of car loan under SME car loans, the age of vehicle should

not be more than

a) 3 years b) 2 years c) 5 years

d) 7 years

11. The maximum loan repayment for SME car loan (for old vehicles) is

a) 7 years

b) 5 years c) 7 years from the date of original purchase d) 8 years

12. When SME Car loan is rejected, 25% of processing fee is retained after pre-sanction subject to minimum of Rs___ & Maximum of Rs____

a) 500 & 2500 b) 100 & 1000 c) 250 & 2500 d) 250 & 5000 KEY – CAR LOAN TO SME UNITS:

01 c 02 d 03 b 04 a 05 b

06 b 07 a 08 b 09 a 10 b

11 c 12 a

1. SBI Smile is product for SBI Smile

a. Adhoc loans granted to the SME Borrowers b. Loans given to the SME Borrowers for Tours and Travel

c. Int. free loan given as Equity support to the SME Borrowers d.Free Grant given as Equity support to the SME Borrowers

2. The minimum contribution by the borrower to the equity of the project

should be

a. 10 % of the cost of the project

b.2.5 % of the cost of the project c. 5 % of the cost of the project

d. 7.5 % of the cost of the project

3. The rate of the interest charged for ELA availed by theborrowers under the SBI Smile loan is

a. 5 % less than SBAR b. 5% c. Nil d. 3 %

4. The repayment of the loan under the SBI SMILE is

a. Over a period of 3 years. b. Over a period of 7 years after an initial moratorium period of 5-7 years.

c.Over a period of 3 years after an initial moratorium period of 5-7 years. d.Over a period of 5 years after an initial moratorium period of 5-7 years.

ANSWERS -SBI Smile

01 c 02 d 03 c 04 c


SBI Micro loan

1. The maximum loan amount under the SBI Micro loan is

a. Rs 5.00 lacs b. RS 10.00 lacs

c. RS 2.50 lacs d. Rs 25.00 lacs

2. The rate of interest charged for the borrowers under the SBI Microloan is

a. Interest is nil b. 8%

c. 5% d. 7%

3. The repayment period available underthe SBI Micro loan scheme is


ANSWERS – SBI Micro Loan

01 a 02 b 03 d

Bank Guarantee & Letters of Credit

1. The applicable credit conversion factor (CCF) for Financial Bank Guarantees

and Performance Bank Guarantees are…………….and…………..respectively.

A 100 per cent; 50 per cent B 75 per cent; 75 per

cent C 50 per cent; 100 per cent D 25 per cent;

25 per cent 2. All Letters of Credit (L/C) to be opened by nominated Banks/Agencies for import of gold under all categories will be only on …................cash margin basis.

A 25.00% B 50.00%

C 75.00% D 100.00%

KEY -Bank Guarantee & Letters of Credit

1 A 2 D

WORKING CAPITAL FINANCE TO PRIVATE BUILDERS AND T & S

1. The maximum repayment period allowed for WC financing to private

builders is…..

a) 24 to 36 months

b) 36 to 48 months c) 12 to 24 months

d) upto 60 months


2. The minimum margin required for WC finance to private builders(C&I) with CC facility is …..

a) 25% b) 40%

c) 50% d) 30%

3. The maximum loan amount that can be sanctioned to a private builder under WC finance to private builders (C&I) with CC facility is….

a) Rs.25 Crores

b) Rs.50 Crores c) Rs.100 Crores

d) Rs.200 Crores

4. The maximum loan amount that can be sanctioned to a private builder under WC finance to private builders (T &S) with CC facilityis…

a) Rs.5 Crores b) Rs.10 Crores

c) Rs.25 Crores d) Rs.50 Crores

5. The minimum margin required for WC finance to private builders(T&S) with

CC facility is …..

a) 25% b) 40% c) 50% d) 30%

6. As per the revised instructions to be eligible under WC finance to private

builders(T&S, ), the units in C & I segment with profits atleast in the preceding

3 years with CRA rating of ____ & above

a) SB 10 b) SB 8 c) SB 7 d) SB 9

WORKING CAPITAL FINANCE TO PRIVATE BUILDERS AND T & S.KEY

01 a 02 c 03 a 04 a 05 a

06 d

ELECTRONIC VENDOR FINANCING SCHEME (EVFS)

1. The validity period of loans sanctioned under EVFS is…

a) 36 months b) 24 months

c) 12 months d) 48 months

2. Administrative clearance for selection of Industry Majors (IMs) whose

vendors become eligible for sanction under EVDS is…

a) CCC I

b) COCC I c) CCC II

d) COCC II

3. The margin required for loans under EVDS is …..

a) 10% b) 20% c) Nil d) 25%

4. The minimum collateral security to be obtained for sanction under EVDS

is…

a) 50% b) 75% c) 100% d) Nil

5. The document to be obtained for loans sanctioned under EVDS is as per

the documents of

a) C&I b)SME

c)As per the Law Dept‟s

instructions d)Per 01 c 02 b 03 c 04 d 05 c

m-DFS -“Mortgage Dealer Finance Scheme”

1.Minimum amount of facility that may be sanctioned under “Mortgage Dealer

FinanceScheme” (m-DFS) is..............................

A Rs 10.00 Lacs B Rs 25.00 Lacs C Rs 50.00 Lacs D Rs 100.00 Lacs

2. 25% of the existing e-DFS/m-DFS limit to dealers who availed of a limit of

Rs.100Lacs& above under e-DFS / m-DFS may be sanctioned as “Drop line Overdraft”facility subject to maximum of

ARs 1.00 crore B Rs 5.00 crore C Rs 10.00 crore D Rs 25.00 crore

KEY:

1 C 2 B


TRADERS EASY LOAN (TEL)

1. The maximum loan amount that can be sanctioned under TEL is ….

a) Rs.10 Crores

b) Rs.5 Crores c) Rs.50 Crores

d) Rs.25 Crores 2. Maximum loan component with regard to property mortgaged is ….

a) 50% b) 75% c) 65% d) 80% 3. The minimum loan amount that can be sanctioned under TEL is …

a) Rs.0.50 lacs b) Rs.0.25 lacs

c) Rs.1.00 lacs d) Rs.10.00 lacs

4. The validity period for WC facility sanctioned under TEL is …

a) 1 year

b) 2 years c) 3 years d) 2 years subject to annual review

5. The valuation report of the property for TEL, should not exceed more than

a) 1 year b) 3 months

c) 6 months d) 2 years

6. Type of facility for TEL is …

a) CC/OD b) DL c) TL

d) any one of the above

7. Maximum repayment for TL under TEL is ….

a) 36 months

b) 60 months c) 48 months d) 24 months

KEY -TRADERS EASY LOAN (TEL)

01 b 02 c 03 b 04 d 05 b

06 d 07 b

CORPORATE LOAN

1. The minimum loan amount for Corporate Loan is

a) Rs.25 lacs b) Rs.50 lacs

c) Rs.100 lacs d) No such minimum amount specified

2. What is the maximum loan amount under Corporate Loans for Corporates?

a) No upper ceiling b) Rs.10 Crores


3. The maximum loan amount for Non - Corporates under Corporate Loan?

a) Rs.20 Crores b) Rs.10 Crores c) 5 Crores d) No such limit

4. Maximum repayment that can be allowed for Corporate Loans is….



5. What is the minimum margin% for corporate loans?

a) 10% b) 15%

c) 20% d) Not applicable 6. Maximum number of corporate loans that a unit can have at a time is …..

a) 3 loans b) 1 loan

c) 2 loans d) 5 loans

7. What is the minimum Fixed Assets Coverage Ratio (FACR) should be for corporate loan?

a) 100% b) 125% c) 150% d) No such condition applicable

8. External Credit Rating (ECR) is mandatory for exposure above Rs…..

a) Rs.5 Crores b) Rs.10 Crores


9. Minimum CRA rating to be eligible for Corporate Loan is……..

a) SB 4 b) SB 5

c) SB 10 d) SB 7

KEY – CORPORATE LOAN

01 a 02 a 03 b 04 a 05 d

06 a 07 b 08 b 09 c

SME ASSETS PRODUCTS…………..CONTINUED

1. Expand MUDRA e. Micro and Urban Development Refinancing Agency f. Metro and Urban Development Refinancing Agency g. Medium and Underdeveloped Rural Agency h. Micro Units Development and Refinancing Agency

2. MUDRA was launched on a. 8th April 2015 b. 8th May 2015 c. 6th April 2015 d. 6th June 2015

3. MUDRA is basically lending to

a. Manufacturing Sector only b. Trading Sector only c. Services Sector only d. All the above

4. Loan Value Upto Rs.50000 is classified as

a. Sishu b. Kishor c. Tarun d. None of the above

5. Loan Value from Rs.50001 and upto Rs.5 lacs is classified as a. Sishu

b.Kishor c.Tarun

d. None of the above 6. Loan Value above Rs.500000 and upto Rs.10 lacs is classified as

a. Sishu b. Kishor c. Tarun d. None of the above

7. The Circle will report the progress of MUDRA Loans to

a. Government of India b. State Government c. State Level Bankers Committee d. None of the above

ANSWERS:: 1- D:: 2- A:: 3-

D:: 4- A::

5- B:: 6- C:: 7- C