Promotion Book 2011

STATE BANK LEARNING CENTER, PANCHKULA

PREPARED BY SBLC PANCHKULA (UPDATED UPTO 1ST June 2011)

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2


(For Internal Circulation only)

Promotion Booklet (Updated upto 01-06-2011)

STATE BANK LEARNING CENTRE Sector-14, PANCHKULA PHONE: 0172-4569401 “While we have taken utmost care in incorporating latest information on various topics, errors and omissions are likely. Hence the readers are requested to be guided by the circulars issued by the Bank from time to time and SBLC, Panchkula is not liable for any such inadvertent mistakes and omissions, if any. We also request our readers to kindly bring to our notice, any mistakes/omissions noticed by them to make suitable corrections in the subsequent edition.”

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STATE BANK LEARNING CENTER, PANCHKULA PROMOTION BOOKLET

INDEX Chapter

Name of the Chapters

no.

Page Number

1

Policy Guidelines

1-5

2

Annual Results

6-8

3

General Banking

9-29

4

Inspection& Audit,

30-37

5

Basel-II, Capital Adequacy & Risk management

38-49

6

P-Segment Liability Products

50-68

7

P-Segment Assets Products

69-126

8

SME Liability Products

127-138

9

Micro Advances, PMEGP, SGSY,

139-142

10

SME Advances

143-201

11

NPA Management

202-208

12

Legal Aspects of Banking

209-245

13

International Banking

246-316

14

Agriculture Advances

317-386

15

Cash Deptt. Procedures & Govt. Business

387-411

16

CBS , Technology Products

412-463

17

Information Security System

464-475

18

BPR

476-480

19

Cross Selling

481-494

20

Awareness of Banking Finance & Economy

495-531

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Policy Guidelines 2011-12 1.

As per Policy Guidelines Net Profit of S B I has been targeted to increase by _______%, during the year 2011-12 a) c)

2.

b) d)

20 30

As per Policy Guidelines 2011-12, Corporate Centre has fixed the target for growth in deposits for at:______ a) c)

3.

18 25

23% 18.5%

b) d)

32% 15.5%

Target for growth of advances (excluding food) for whole bank, as Policy Guidelines has been fixed at:_________ a) c)

20% 23%

b) d)

per

22% 28%

4.

As per Policy Guidelines 2011-12, the return on equity has been targeted at….. % a) 18.50 b) 19.50 c) 15.20 d) 16.20

5

As per Policy Guidelines 2011-12., increase in CASA ratio for the whole bank is to go up by ……, …… basis points. a) c)

6.

b)150 d)200

ALL SME customers with limit of Rs-----cr and above are to be provided with CINB in 2011-12. a) c)

7.

120 140

1.00 2.5

b) d)

3.00 1.5

As per Policy Guidelines 2011-12 the Bank has to focus on increasing other income by ______%. a) 28 c) 30

b) 26 d) 40 1

STATE BANK LEARNING CENTER, PANCHKULA 8.

As per Policy Guidelines 2011-12, target for growth in Housing and auto loans in NBG has been fixed at …….% & ……%. a) c)

9.

the return on assets has to increase by b) d)

3 7

1.08 1.03 the overheads growth is to be restricted

b) d)

5 0 (SAME LEVEL)

1.00lac 1.50lac

b) d)

0.50lac 0.75lac`

20 & 25 30 & 30

b) d)

25 ,25 50 & 50

As per Policy Guidelines 2011-12, ------- % growth has been set for education loan a) c)

15.

2.27 3.25

As per Policy Guidelines 2011-12, the Forex retail purchases and retail sales must grow by ------ % & …….% . a) c)

14.

2 1.90

ratio for the whole Bank

Under Green Channel counter bank seeks to achieve ------transactions by 2012 a) c)

13.

b) d)

As per Policy Guidelines 2011-12, to-----a) c)

12.

3.50 1.15

As per Policy Guidelines 2011-12, ….% a) c)

11.

b) 27, 22 d) 26, 35

As per Policy Guidelines 2011-12 Gross NPA should be ------ % a) c)

10.

20, 30 25, 32

25 45

b) d)

30 40

As per Policy Guidelines 2011-12, -------- number of new mobile banking users are to be added . a) c)

20lac 25 lac

b) d)

10lac 30lac 2


16.

As per Policy Guidelines 2011-12, ------ lac new Retail users of INB are to be added . a) c)

17.

120 200

b) d)

300 150

10 25

b) d)

20 15

As per Policy Guidelines 2011-12, net interest margin for the bank should be -----------a) c)

20.

50 25

As per Policy Guidelines 2011-12 the NRI deposits have been budgeted to increase by …%. Under the overall growth target for deposits. a) c)

19.

b) d)

Income from cross selling Buisness is targeted to increase by …..% in 2011-12 a) c)

18.

24 30

3.5 4.2

b) d)

3.40 2.85

As per Policy Guidelines 2011-12 in the growth in agriculture advances is set at ---------% a) c)

20 40

b) d)

30 25

Key to Policy Guidelines 2011-12 1 C 6 A 11 B 16 A

2 A 7 B 12 A 17 B

3 C 8 D 13 B 18 A

4 D 9 B 14 A 19 B

5 C 10 D 15 A 20 D

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STATE BANK LEARNING CENTER, PANCHKULA Policy Guidelines 2011 - 12 1.

As per Policy Guidelines 2011-12. Target of cash recoveries in NPA’s and also upgradation of NPAs has been budgeted at ……crores,&…..crores. a) c)

3000,5560 5000 ,6750

b) d)

4000,4500 4200, 3200

2.

As per Policy Guidelines 2011-12, out of total advances to micro and small enterprises ----- % should go to micro enterprises. a) 40 b) 55 c) 60 d) 45

3.

As per Policy Guidelines 2011-12 , --------- no of Finanacial plans including General plans have been budgeted to be prepared. a) 1,20,000 c) 1,50,000

4.

b) d)

1,00,000 2,00,000

As per Policy Guidelines 2011-12 , the market share of Deposits and Advances is to increase by more than ….. & ….basis points . a) c)

60, 45 45, 40

b) d)

65, 50 70, 65

5.

As per Policy Guidelines 2011-2012, %age of transactions through alternate channels should be------%. a) 40 b) 50 c) 60 d) 45

6.

As per Policy Guidelines 2011-2012, our capital adequacy should be above---------% a) c)

7.

b) d)

15 13

As per Policy Guidelines 2011-2012, the average Daily Average Hits at ATMs have to Increase from a) c)

8.

12 14

365 to 370 340 to 350

b) d)

370 to 390 400 to 410

As per Policy Guidelines 2011-2012, all accounts under --------are to be RINB enabled a) SME b) CSP c) Saving Plus d) Current a/c 4


9.

As per Policy Guidelines 2011-2012 the target for increase in Govt . Commission is Budgeted to increase by about ……% a) 35 b) 40 c) 33 d) 20

10.

The target for Credit Linking of SHGs for the year ending 31-03-2012 has been fixed at …… Lacs a) c)

11.

4 3.5

b) d)

As per Policy Guidelines 2011-2012 the target for opening of No Frill a/cs has been fixed at --------lacs a) 15 c) 10

12.

13.

3 2

b) d)

30 25

Per deposits and advances growth target set for SCE branches for the year 2011 -12 is ----- % & ------- % a) 40, 40 b)35 , 35 c) 60, 40 d)50, 30 Net NPA %age for the year 2011-12 should be -------a) 1.00 b) 2.05 c) 2 d) 1.50

Key to Policy Guidelines 2011 - 12 1 C 6 D 11 D

2 C 7 A 12 B

3 A 8 B 13 A

4 C 9 D

5 B 10 A

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ANNUAL RESULTS 2010-2011

1. The % of share held by government of India in SBI” s equity is ----(a)59.63

(a)59.60

(c)59.40

(d)49.40

2. The total deposits of the bank as on 310311 have crossed ----- Cr. (a) 833000

(b)923000

(c)933000

(d)943000

3. The total advances of the bank as on 310311have crossed….cr. (a)350,000

(b)771000

(c)781000

(d)791000

4. Operatig profits of the bank have grown upto Rs. ……… cr. For the year ending 2011. (a)5000

(b)25335

(c)38351

(d)28351

5. The bank has declared a dividend of per share of Rs…….for the year ending 2011 . a)30

(b) 25

(c) 28

(d) 29

6. Interest income on loans has grown by…………% over FY 2010 . a) 22.12 7

b) 20.26

c) 18.45

d) 23

The Bank has recorded a NIM of (Net Interest Margin ) ………% for the year ending 2011 . a) 3.09

b) 3.32

c) 2.83

d) 2.73

8. Market share in deposits for the year ending 31.03.2011 is …..% a) 17.03,

b)15.40

c) 17.40

d) 16.40

9. How many domestic branches of SBI are there as on 31.03.11 a)

12596

b)

135332

c)

13542

d)

12156

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10. The CASA ratio has improved from 46.67% as on March 2010 to -------as on Mar.2011 . a) 48.66 b) 47.94 c)45.32 d) 46.01 11. The net profit of State Bank of India for the year ended 31st March 2011 was:____ a) Rs. 8361.52 crore c) Rs. 8264.52crore 12.

b) d)

Rs.9381 crore Rs.9564.45 crore

The paid up capital of State Bank of India as on 31st March 2011 was: a) c)

Rs.562.29 crore Rs.500 crore

b) d)

Rs.1000 crore Rs.635 crore

13. The authorised share capital of State Bank of India as at the end of 31st Mar2011 was: a) Rs.100 crore c) Rs.500 crore

b) d)

Rs.200 crore Rs.1000 crore

14. The “paid up capital and reserves” of State Bank of India as at the end of 31st March 2011 was in the range of: a)Rs.50000 – Rs. 60000 crore c)Rs.45000 – Rs. 48000 crore 15.

b) d)

Rs.68000 – Rs.70000 crore Rs.64000 – Rs.65000 crore

The number of State Bank Group ATM”S as on 31st March.2011 are: a) 25006 c) 25003

b) d)

25005 24500

16. Profit for the fourth Quarter ending 2011 was -------- Rs. a)28.08 17.

18.

b) 24.01

c) 20.88

d) 20.46

Earning per share (EPS) of State Bank of India for the year 2010-2011 was: a) Rs.132.15 b) Rs.140.15 c) Rs166.31 d) Rs. 130.16 The Buisness growth for the year ending 31.03.2011 is Rs.……….Crores a)250142

b) 190145

c )260139

d) 240139

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The credit deposit ratio for the year ending 2010-2011 is..…….% a)75.74

20.

b)76.32

c)7 6.03

Gross and Net NPA,s as at the end of a)3.28, 1.63

b) 2.98, 1.78

22.

b)11.98

Basel 11 is …….% for the year ending c)10.69

d) 11.79

The Bank has reached a provision coverage ratio of …………% for the year ending 2011 a)64.95

23.

31.03.2011 are …….,……..% c) 2.48 ,1.90 d) 3.05, 2.09

21. Bank’s Capital Adequacy Ratio as per 31032011 . a)11.78

d) 74.94

b) 60.63

c)71.63

d) 59.37

Our Bank’s Cost of Deposits has decreased to ……% as on 31.03.2011 a)5.26 b)5.39 c)6.60 d)6.90

24. The return on equity for the year ending March 2011 is-------. a)12.84 25.

b) 11.90

c)15.23

d)12.01

The return on average assets for the year ending 2011 is -------- % a)0.71

b)0.65

c)0.63

d)0.68

KEY TO ANNUAL RESULTS 2010-2011 1 C 6 C 11 C 16 C 21 B

2 C 7 B 12 D 17 D 22 A

3 B 8 D 13 D 18 C 23 A

4 B 9 C 14 D 19 B 24 A

5 A 10 A 15 B 20 A 25 A

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SAFE DEPOSIT LOCKERS/SAFE CUSTODY 1.

‘A’ has hired a locker with your branch, he sends the key by post with an intention to surrender the locker, in this situation---------a) Bank will be discharged of its liability, if key is accompanied by a letter stating the contents of the lockers as NIL b) The bank will not be discharged of its liability c) The bank should not accept d) Bank can accept subject to its rights under reserve

2.

Your branch has a locker account in the joint names of ‘A’ and ‘B’ to be operated as ‘either or Survivor’. You receive information of death of ‘B’, in this event--------: a) b) c) d)

3.

A authorizes B for operating his locker. B approaches the bank for surrender there of. How would you react? a) b) c) d)

4.

B can surrender the locker B cannot surrender the locker If contents are nil he can surrender None of the above

When a locker is broken open the presence of which of the following is not must-------a) b) c) d)

5.

A can operate the locker with legal heirs of B For operations of locker permission of court is needed A can operate the locker None of the above

Locker hirer or his legal heirs Two independent witnesses Branch officials Representative of local police

‘A’ and his wife ‘B’ have hired a locker in joint names; ‘A’ is residing abroad. ‘B’ informs about loss of key of the locker and asks for breaking open the locker, in this event-----: a) Bank will not accept the request b) Bank can accept on the basis of indemnity c) Bank can accept the request on the basis of indemnity bond and power of attorney in her favour from A d) None of the above

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When a hirer surrenders a locker, the surrendered locker-------------a) b) c) d)

7.

A locker on hire can not be given to which of the following-----------: a) b) c) d)

8.

Cannot be allotted to any other person After interchanging the lock of the locker with any other empty locker, it can be allotted to any new hirer The surrendered locker can be allotted to new hirer only after 3 years from date of surrender None of the above

A minor An illiterate person To clubs, societies & associations All of the above

A and his wife B are having locker with ‘either or survivor’ clause. A informs that his wife has gone insane and requests the bank not to allow her to operate the locker. The bank--------------a) Will allow operation by B till A gives a certificate to the bank to the affect that B has become insane and bank is satisfied with this. b) Will not allow operation by her c) Only joint operations here after d) None of the above

9.

What would be the course of action in case of loss of safe custody receipt by the customer----------: a) If satisfied, the bank can issue a duplicate on written request from the customer b) The contents would be seized c) The bank can issue a duplicate after obtaining indemnity bond. d) Duplicate cannot be issued as it is not a negotiable instrument

10.

When the bank accepts articles for keeping in safe custody, the relationship between the banker and the customer is that of-----------a) b) c) d)

Trustee and beneficiary Bailor and bailee Chief and agent Bailee and Bailor

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11.

A customer keeps NSCs in the name of his minor son in safe custody with the bank. Immediately after attaining majority the son approaches the bank with a request that the certificates be delivered to him as he is major now, in this event---------, a) Bank will not deliver to him b) Bank will deliver to him after attaining proper introduction and discharge c) Bank will neither deliver him nor let him have the details d) Bank will deliver to the father who had handed over the certificates to the Bank

12.

Articles left in safe custody cannot be delivered on the basis of a succession certificate because----: a)

These are not included in debt and securities as defined under Indian succession act 1925 b) It is not allowed under RBI act c) It is not permitted under negotiable instruments act d) None of the above

13.

A minor wants to keep certain articles in safe custody. The Bank -----------a) b) c) d)

14.

‘A’, while keeping a sealed packet in safe custody gives instruction to the bank that the packet should be delivered to the ‘B’ after his death. In this event, bank --------a) b) c) d)

15.

Will not accept the articles Can accept and keep articles in safe custody Can accept if it is a fixed deposit in his name None of the above

Can accept the articles Should not accept the packet Can accept with power of attorney in favour of B None of the above

In case of accepting articles in safe custody, the nomination facility is available under a) b) c) d)

Negotiable instruments act 1981 Banking Regulations act 1949 RBI act 1934 Indian contract act 1872

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Mr. X, approaches your branch to deposit in safe custody, his term deposit receipt (issued by other bank), How would you react----------------------a) b) c) d)

17.

The packets or boxes accepted for keeping in safe custody must bear which one of the following seals------------: a) b) c) d)

18.

It can be accepted, provided the other bank has no objection to this It can be accepted, if the customer provides indemnity bond It can be accepted in normal course It cannot be accepted, since it is a term deposit issued by another bank, this has primary lien on deposit.

Seal of the Bank Seal of the depositor Both the above None of the above

The relationship between the bank and hirer of a locker is that of------------: a) c)

19.

Debtor-Creditor Licensor -Licensee

b) d)

Bailor-Bailee Principal-agent

Locker hiring Charges for a locker (small type) in a Urban Branch are------: a) c)

Rs. 550 p.a. Rs. 1000/- p.a.

b) d)

Rs. 750/- p.a. None of the above

20. Safe custody receipt in respect of branch duplicate keys is kept in the a) b) c) d)

joint custody of the branch manager and manager cash sole custody of the branch manager in his hand safe. joint custody of the accountant and cash officer sole custody of accountant KEY : Safe Deposit Lockers/Safe custody

Q. Ans. Q. Ans.

1 a 11 b

2 c 12 a

3 b 13 c

4 d 14 b

5 c 15 b

6 b 16 c

7 a 17 b

8 c 18 c

9 c 19 c

10 d 20 b

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DISPOSAL OF ASSETS OF DECEASED CONSTITUENTS 1.

The term intestate is used with reference to -----------a) Settlement of claim in case of a deceased customer b) Payment to the nominee in case of a deceased customer c) A person died without leaving a will. d) A person died after leaving a will

2.

As per extant instructions regarding payment of balances in the deceased constituents accounts, no separate affidavit (COS 539) would be required for an aggregate amount upto Rs.______ a) Rs. 0.50 lacs b) Rs. 1 lac c) Rs. 2 lacs d) Rs. 3 lacs

3.

As per extant instructions regarding payment of balances in the deceased constituents accounts, for an aggregate amount above Rs. 1 lac separate stamped affidavit (COS 539) would be required, which should be signed by: a) One person b) Two persons c) Three person d) four persons

4.

A person will be declared as legally dead, if for a period of_.....year or more, the persons who would have normally known of his existence have not heard of him / known of his existence: a) 5 b) 6 c) 7 d) 8

5.

When a person dies without leaving behind a will, a person appointed by court to manage his estate is called: a) An executor b) An attorney c) An administrator d) A trustee A box was kept as a safe deposit article at your branch. The legal heir to the estate of the deceased has now requested you to deliver the article to him. Which of the following documents is to be obtained? a) Succession certificate b) Letter of administration c) Affidavit -cum-indemnity bond d) A simple receipt signed by the heir

6.

13


A Probate is-------------------------a) Will of the deceased. b) The last will of a person certified by legal heirs c) A copy of will certified by a court for settlement of property of the deceased. d) A registered will of the deceased.

8.

A will is Probated by the Court under which of the following Act-------------------a) Indian Succession Act b) Banking Regulation Act c) Indian Contract Act d) Hindu Succession Act

9.

An ‘Executor’ is-------------: a) A person appointed by the court to sell the assets of a deceased person. b) A person who is named in the will of a deceased person to manage his estate c) A person appointed by the legal heirs to execute their orders. d) None of the above.

10

As per extant instructions as regards to payment of balances in the deceased constituents accounts, no surety would be required for an aggregate amount upto Rs.----------a) Rs.1, 000 b) Rs. 50,000 c) Rs. 10,000 d) Rs. 20,000

11

A succession certificate is--------------a) A document in the form of a court certificate which authorises a person to succeed to the properties of a deceased person. b) A document which authorises to receive property c) An order by a court. d) A petition approved by a court.

12.

A succession certificate issued by a court of law is operative ---------a) b) c) d)

13.

Within the Distt. Within the State Within India. At a place specified in the certificate.

A succession certificate is issued in respect of which of the following-----: a) Debts and Securities due to the deceased (i.e. deposits and shares/securities) b) Gold Silver etc. c) Gold offered as security of loan. d) None of the above. 14


14.

Which of the following statement is not correct----------? a) Nomination can be made by illiterate depositor b) Nomination can be made in joint Accounts also c) Only one person can be nominated in deposit accounts d) Two persons can be nominated in the Joint Deposit Accounts

15.

Nomination by illiterate to be witnessed by------------a) b) c) d)

16

For a deposit account in the name of a minor, who can make the nomination-----a) b) c) d)

17.

The natural guardian or legal guardian The minor himself No nomination in minor deposits None of the above

Nomination, cancellation of Nomination and change in nomination require--------a) b) c) d)

18.

One person Two persons A Bank Official Nominee

Registration with Revenue authorities Registration with Co. Act Registration with RBI under BR Act No Registration is required

In case the nominee predeceases the account holder, the nomination---------------a) b) c) d)

Automatically Stands cancelled Requires request for cancellation Legal representation is required Will require renewal

19.

Nomination can be made in favour of------------: a) Institutions/Societies b) Joint Nominee c) Individuals d) Blood Relation only

20

The person who makes a Will is a) Legatee b) Testator c) Executor d) None of the above 15


21.

The person who inherits property under a Will is a) Legatee b) Testator c) Executor d) None of the above

22.

A will to be valid must be ------a) Attested or witnessed by 2 or more witnesses b) Attested or witnessed by one witness is sufficient c) Attested or witnessed by 4 or more witnesses d) Need not be attested or witnessed

23.

A will to be valid must be ------a) Should be stamped b) Attracts advalorem c) No stamp duty is required d) To be executed on a stamp paper

24.

The document that alters, adds or explains a will and is deemed to be part of a will is------a) b) c) d)

Annexure Add-on will Codicil None of these

25.

While opening account in the name of an executor we must obtain---a) Original Will b) Probate c) Succession Certificate d) Letter of Administration

26.

Balance in the account of a deceased constituent can be attached by a a) Garnishee order issued by the Court b) Attachment order of Revenue Authority c) None of these

27.

Which of the following documents you will call for in permitting removal of the contents of the locker in case of death of locker hirer who has not nominated any one? a) Heir ship certificate b) Succession certificate c) Certificate of administration general d) Letter of administration 16


28.

As per RBI instructions claim upto Rs. ________ can be settled without legal representation if there is no dispute and Bank has no reasonable doubt about the claimant and all legal heirs join in indemnifying. a) b) c) d)

10 lacs 25 lacs 100 lacs No limit

29.

Payment to the claimants of deceased claim cases is made---------a) by credit to the accounts of claimants b) by adding the name of the claimants to the accounts of the deceased constituent c) to be made through Bankers’ Cheque, which should be properly discharged d) by cash

30.

What is the procedure of delivering the gold ornaments pledged to the bank without legal representation? a) The Letter of Indemnity is to be obtained on the appropriate form b) The receipt of the claimants is to be obtained in the Gold Loan Ledger under authentication of the joint custodians c) A separate receipt detailing the items delivered is to be obtained from the claimants d) All the above

31. As per RBI instruction the claims up to a threshold limit of Rs------------ will be entertained without insisting for valid death certificate in case of missing persons. a)1.00lac

b) 0.50lac

c)2.00lac

d)1.50lac

32. The documents required for settling claim in respect of missing persons without production of valid death certificate are a) FIR b)Non-traceable report issued by the police authorities. c) Indemnity from the claimant d) all the above

17


Answers DISPOSAL OF ASSETS OF DECEASED CONSTITUENTS 1 c 11 a 21 a 31

2 b 12 c 22 a a

3 a 13 a 23 c 32

4 c 14 d 24 c d

5 c 15 a 25 b

6 b 16 a 26 b

7 c 17 d 27 d

8 a 18 a 28 d

9 b 19 c 29 c

10 b 20 b 30 d

18


TRANSFER PRICE MECHANISM 1. MRFTP STANDS FOR (a) Money related funds transfer procedure (b) Money related funds transfer pricing (c) Market related funds transfer procedure (d) Market related funds transfer pricing 2. MRFTP has been launched with the undernoted objectives in mind (a) (b) (c) (d)

the previous exercise use to take lot of pain & labour to save considerable time to facilitate consolidation & transmission of the TPM reports to corporate center Maintenance of backup registers, manual calculations /interventions and validations were making the whole process of preparations of P –Form a cumbersome one (e) All of the above

3. MRFTP is a scientific internal funds supplement the ……. (a) Top management (b) Profitability (c) Asset Liability management (d) Market pricing 4.

transfer price mechanism evolved to

MRFTP is a system under which the market is scanned on a daily basis to arrive at the …………… & …………… (a) TP Bid rates (b)TP Offer rates (c) Interest Rates (d) a & b above

5. TP Bid rate is equivalent to (a) C.O interest rates for deposits (b) SBAR (c) Bank Rate (d) None of the above

19


6. TP offer rate is equivalent to (a)C.O interest rates for advances (b)SBAR (c) Bank Rate (d)None of the above 7. TP rates are arrived at by a method called ( a) market Pricing (b) Security Pricing (c) Matched maturity funding (d) T P Funding 8 TP rates are calculated by taking into consideration ………………. of the account. (a) the origination date (b)Maturity date (c ) repayment schedule (d)repricing characteristics (e)All of the above 9 Under MRTFP , TP rates are assigned to each deposit /advance account except for (a) Cash Credit Account (b) MTL A/c (c) Demand Deposits (d) None of the above 10 TP rates are different for different market segments (a) Are same for all the segments and population groups (b) Similar for AGR & SIB segments only (c) Different for metros, urban , Semi Urban & Rural areas (d) Same for metro and urban and different for semi urban and rural 11

For staff deposits TP bid rate is ------basis points over and above the interest tate of the account (a) 25 (b) 30 (c) 10 (d) 15

20

STATE BANK LEARNING CENTER, PANCHKULA 12 For all term deposit products the TP bid rates are picked up from the ………….., on the date of origination of the deposit, for the tenor/period of the deposit. (a) Market (b) ALM Deptt (c) RBI (d) TP Bid Curve 13.

The Demand deposits are non maturity deposit accounts like Savings account, Current Account where maturity pattern is arrived at based on the behavioral study of …………. . (a) Customers (b) Share Market (c) Debt Market (d) the said accounts

14.

For Savings , it is assumed that 10 % of the balances are paid on the …. day and the remaining balance of 90 % is paid at the end of the 1st year, 3rd Year and 5th Year in equal proportions. a)

14th

b)

10 th

c)

30th

d) 15th 15.

TP bid rate for Savings account is (a) (b) (c) (d)

16.

TP bid rate for Current account is (a) (b) (c) (d)

17.

14day rate* 0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) 10day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) 15day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) 30day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3)

14day rate* 0.15,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.25) 10day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) 15day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3) 30day rate *0.10,+(1 yr rate*0.3)+(3 yrs rae*0.3 )+5 yrs rate *0.3)

TP bid rate for special schemes/ Foreign currency deposits is arrived at by adding ………to the interest rate of the deposits (a) Expenses (b) Commission (c) 30 basis points (d) None of the above 21


18.

For cash balance Tp offer rate of-----day/days as on date of transfer pricing date is taken (a) 14 (b) 7 (c) 1 (d) 3

19. For fixed rate loans as demand deposits,(except demand deposits against bank’s own securities and term loans TP offer rate is arrived at by a method called -----(a) duration (b) behavioural analysis (c) moving averages (d) projection 20. For fixed rate loans like CC&OD TP offer rate is arrived , just like in …… (a) DL (b) TL ( c) SB/CA (d) one of the above KEY TO ASSIGNMENT TRANSFER PRICE MECHANISM 1 D 6 A 11 A 16 A

2 E 7 C 12 D 17 C

3 C 8 E 13 D 18 C

4 D 9 C 14 A 19 A

5 A 10 A 15 A 20 C

22

STATE BANK LEARNING CENTER, PANCHKULA Remittances/Collections-1 1. RTGS stands for ----------a) Risk Taking Guarantee Scheme c) Right Transaction General Scheme

b)

Real Time Gross Settlement None of the above

d)

2. RTGS Scheme is managed by---------a) State Bank of India c) Reserve Bank of India

b)

Indian Bank’s Association d) None of the above

3. For customer to customer transaction minimum amount that can be sent is a) b) c) d)

Rs2.00lacs Rs5.00lacs Rs1.00lacs No minimum

4. Transactions under RTGS are reconciled at--------a) CDC Belapur c) F.D. Calcutta

b) IOR Deptt. C.O. Mumbai d) Reserve Bank Of India

5. In case of payment of IOI, the paying Banker is protected under section_______ of Negotiable Instrument Act1881, if other conditions are satisfied: a) 85 c) 131

b) 85A d) 138

6. A duplicate IOI can be issued for an amount up to Rs. ____ without waiting for the non-payment advice from the drawee branch: a) Rs.5,000 c) Rs.15, 000

b) d)

Rs.10, 000 Rs.15, 000

7. For valued constituents, a duplicate IOI can be issued without insisting for any surety, where the amount of IOI is below Rs. --------a) b) c) d)

Cannot be issued without obtaining surety Rs.60, 000/Rs.80, 000/Rs.50, 000/-

23

STATE BANK LEARNING CENTER, PANCHKULA 8. The drawer of a cheque has the right to stop its payment. In the case of a IOI-----: a) b) c) d)

The branch issuing the IOI has a right to stop its payment Only the applicant for the IOI has a right to stop its payment Payment of IOI cannot be stopped None of the above]

9. In the event of Original and duplicate IOI are presented for payment through clearing, by two different banks on the same day, the Bank------------a) Will pay the duplicate c) Will return both

b) Will pay the original d) both will have to be paid

10. Hologram will be affixed on all IOI of Rs.____ & above includingIOI issued on continuous stationary: a) c)

Rs.0.50 lac Rs. 2 lacs

b) Rs.1 lac d) Rs. 10 lacs

11. In case of collection of IOI the collecting Banker is protected under section….. Of Negotiable Instrument Act1881. a) c)

85 131

b) d)

85 A 131 A

12. Branches will provide immediate credit to customers’ accounts in respect of outstation cheques up to Rs _______ as per RBI directives: a) Rs.5, 000 c) Rs.15, 000

b)

Rs. 7,500 d) Rs. 20,000

13. While making the payment of a Banker’s Cheque by cancellation, which of the following statement is not true: a) A stamped letter of Indemnity on COS 537 would be required b) The purchaser can give a simple request letter for cancellation c) His receipt on the back of the Banker’s Cheque (on a revenue stamp if the amount is Rs 500 and above) under the words,” Received Payment by Cancellation “would need to be obtained d) Strict identification should be insisted upon if the amount is paid in cash

24

STATE BANK LEARNING CENTER, PANCHKULA 14. The present ceiling limit per transaction under Electronic Fund Transfer (EFT) is ------------: a) Rs. 1 lac c) Rs. 2 crores

b) d)

Rs. 5 lacs No Ceiling since 01-11-04

15. Interest on delayed collection of instruments is paid by debit to------: a) Interest Account c) Savings Bank Interest Account

b) Charges Account-Sundries d) None of these

16. Drop box facility should not be used for which of the following type of instruments-----------: a) b) c) d)

Local Clearing Cheques Cheques drawn on Branch Cheques against Government Challans Outstation cheques for collection

17. A drop box with 03 slits/compartments has three coloured powder coated compartments-which are these colours: a) Red, Blue, Green c) Blue, Red, Yellow

b) Blue, Green, Yellow d) Red, Green, Yellow

18. As per extant RBI instructions relating to payment of compensation for delayed collection of instruments, banks should pay interest @ ______________ for the period of delay. a) 2% above fixed deposit rate applicable for abnormal delay b) 1.5% above fixed deposit rate applicable for abnormal delay ( c) 1% above fixed deposit rate applicable for abnormal delay ( d) Savings Bank Rate 19. Bank has decided to waive, issue of draft advices in Agency Clearing upto Rs.-----: a) 25,000 c) 10,000

b) 50,000 d) 1,00,000

20. A customer X deposits Rs. 5000/- with the bank for remittance by way of telegraphic transfer for credit of Y’s account at other station. The relationship between Y and bank in this case is that of a:a) Principal and agent c) Debtor and Creditor

b) Beneficiary and trustee d) Trustee and beneficiary 25


KEY TO ASSIGNMENT Remittances/Collections-1 Q. Ans Q. Ans

1 b 11 d

2 c 12 d

3 c 13 a

4 d 14 d

5 b 15 b

6 b 16 c

7 d 17 c

8 c 18 d

9 a 19 c

10 b 20 b

26


Remittances/Collections-2 21. An IOI can be revalidated--------a) Once b) Twice c) No restrictions d) It can’t be revalidated 22. Banker Cheques are to be credited to charges account if they are unclaimed for-------a) Six months b) One year c) Three years d) None of these 23. Maximum amount for which an IOI can be issued is a) Rs100,00,00,000 c) 99,00,00,000

b) Rs99,99,99,999 d) none of these

24. Which one of the following is required to be submitted by an applicant for issuance of DDs, BCs of Rs. 50,000 and above-------a) Form 60/61 c) Neither a nor b

b) PAN No. d) either a or b

25. IOI has ----------digit running serial number a) 12

b)10

c)11

d)16

26. IOI is valid for----a) 6 months c) so long it is revalidated

b) 12 months d) none of the above

27. IOI instruments when examined under Ultra violet rays will show the water mark of--------a) our corporate centre building c) words SBI 28. The Hologram has nine digit number. a) Circle code c) RBI allotted code for our bank

b) SBI’s logo d) none of the above The first two digits represent --------b) First two digits of BSR code d) First two digits of branch code

27

STATE BANK LEARNING CENTER, PANCHKULA 29. Before allowing immediate credit facility (DDP), it is to be ensured that, --------a) Account has been opened for a period not less than six months b) Minimum balance requirements are met c) Cheques deposited for collection/credit to the account have not been returned unpaid d) All the above 30. What is the time frame for collection of cheques (drawn on our own branches), between Metropolitan Centres/ Major “A” Class cities? a) 6 days c) 8 days

b) 7 days d) 10days

31. What is the time frame for collection of cheques (drawn on other bank branches), between Metropolitan Centres/ Major “A” Class cities? a) 6 days c) 8 days

b) 7 days d) 10days

32. What is the time frame for collection of cheques (drawn on our own branches), between Metropolitan Centres / Major “A” Class cities and State Capitals (Other than North Eastern States & Sikkim) ? a) 6 days c) 8 days

b) 7 days d) 10days

33. What is the time frame for collection of cheques (drawn on other bank branches), between Metropolitan Centres / Major “A” Class cities and State Capitals (Other than North Eastern States & Sikkim) ? a) 6 days c) 8 days

b) 7 days d) 10days

34. What is the time frame for collection of cheques (drawn on other bank branches), between centres other than Metropolitan Centres/ Major “A” Class cities and State Capitals (Other than North Eastern States & Sikkim) ? a) 8 days c) 14 days

b) 7 days d) 10days

35. What is the time frame for collection of cheques (drawn on our bank branches), between centres other than Metropolitan Centres/ Major “A” Class cities and State Capitals (Other than North Eastern States & Sikkim) ? a) 8 days b) 7 days c) 14 days d) 10days 28


37.The compensation on account of delays in collection of instruments in foreign currency would be-a) At 5% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to deposit accounts b) At 4% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to deposit accounts c) At 1.5% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to deposit accounts d) At 2% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to deposit accounts 38.If the collection is realized beyond 45 days it is treated as--------a) Normal Delay b) Abnormal dealy b) Delay is delay, it hardly matters whether normal or abnormal d) No such classification 39.If there is abnormal delay in realization of collection and the proceeds were meant for credit to overdraft or loan account of the customer, the interest payable would be at------a) Savings Bank Rate b) SBAR c) Rate applicable on Overdraft/Loan d)1% above the applicable interest rate to the loan account or SBAR, whichever is lower 40.Force Majure means a) external acts over which the Bank has control b) the Bank is liable to compensate the customers for such acts c) These are the acts done by the customer d) these are unforeseen events beyond the control of the Bank

KEY TO ASSIGNMENT Remittances/Collections-2 Q. Ans. Q. Ans.

21 a 31 a

22 c 32 b

23 b 33 c

24 b 34 d

25 a 35 c

26 a 36 d

27 a 37 a

28 a 38 b

29 d 39 d

30 c 40 d 29


INSPECTION/AUDIT-I 1.

RFIA stands for--------a) Return Focus Internal Audit c) Risk Focused Internal Audit

2.

Inspection and Management Audit Department, Corporate Centre is located at--a) Navi Mumbai c) Hyderabad

3.

b) c) d)

Inspection and Management Audit Department, Corporate Centre, Hyderabad Circle Audit Department RBI Auditors Concurrent Auditors

Statutory Audit is conducted by----------a) b) c) d)

5.

b) Jaipur d) Lucknow

Who conducts Credit Audit? a)

4.

b) Risk Factor Internal Audit d) None of the above

Banks Internal Auditors RBI Officials Charted Accountants empanelled by RBI Concurrent Auditors

What is true in respect of RFIA? a) RBI introduced Risk Based Supervision in banking industry due to frequent changes in International Banking Scenario & globalisation, b) RBI announced the move towards Risk Based Supervision in its monitory policy for 2001-02 c) RFIA is part of RBS d) All the above

6.

Frequency of circle audit is a) once a year b) in between two corporate centre audits c) Once in two years d) As directed by RBI

30

STATE BANK LEARNING CENTER, PANCHKULA 7. Under circle audit branche has to submit compliance remarks within months? a) b) c) d) 8.

Serious Drawback in Risk management Serious Deviations in Risk management Serious Deficiency in Risk management Small Deficiency in Risk management

When was RFIA introduced in SBI? a) b) c) d)

11.

SDRM MRDS DRSM None of the above

SRDM stands for------a) b) c) d)

10.

4 1 3 2

Serious Irregularities under Group Heading (SIGH) of the erstwhile inspection report format has been replaced by------a) b) c) d)

9.

-------

01-04-2003 01-04-2002 01-01-2003 None of these

New branched are eligible for RFIA in ---months a) 12 b) 24 c) 15 d) 18

12. Audit conducted in respect of a particular area either at the request of controller or decided by Inspection dept, LHO depending on circumstances is called? a) b) c) d)

controlled audit internal audit concurrent audit spot audit

31


13.

What is a Management Letter? a) b) c) d)

14.

Under RFIA Branches are categorised into ------- groups a) b) c) d)

15.

High Risk Medium Risk Low Risk No Risk

Group-III branches are ------a) b) c) d)

18.

Group I Group II Group III No such criteria

Group-II branches are ------a) b) c) d)

17.

Two Three Five Seven

All branches with a minimum aggregate advance of Rs15 cr are placed under a) b) c) d)

16.

It indicates the staff strength of a branch It describes the customer service of the branch It highlights crucial issues of concern It is the confidential report on the various functionaries at the branch

High Risk Medium Risk Low Risk No Risk

All CAG ,MCG and SAMG branches come under? a) b) c) d)

Group I Group II Group III No such criteria

32

STATE BANK LEARNING CENTER, PANCHKULA KEY TO ASSIGNMENT INSPECTION/AUDIT-I

Q. Ans. Q. Ans.

1 c 11 a

2 c 12 d

3 a 13 c

4 c 14 b

5 d 15 b

6 b 16 b

7 d 17 c

8 a 18 a

9 b 19

10 a 20

33


INSPECTION/AUDIT-II 1

ARF stands for a) Audit related form b) Audit rating format c) Audit report format d) audir review form

2. Under RFIA ARF a) b) c) d)

for different branches is-------?

Different for different categories of branches Same for all branches Same for group I and II Same for Group II and III

3. Which parameter has been delinked from RFIA? a) b) c) d) 4

Risk Rating based on Risk Parameters (1000 Marks) Business Rating based on Business Parameters (500 Marks) General Efficiency Rating on the basis of aggregate of Tier I & Tier II None of these

One of the following is not covered in ARF of Group I branches? a) External compliance b) Credit risk management c) Operational risk management d) Hardware risk management

5 Maximum credit risk management score for group I branch in ARF is ----a) b) c) d)

525 425 600 750

6 Maximum credit risk management score for group I branch in ARF is-------a) b) c) d)

400 425 500 650

34

STATE BANK LEARNING CENTER, PANCHKULA 7. Maximum operational risk management score for group II branch in ARF is____ a) 700 b) 750 c) 800 d) 650 8 Out of total score of 1000 marks under Risk Rating a branch rated as “Unsatisfactory” has a score of--------a) b) c) d) 9

less than 50% less than 55% less than 45% less than 40%

Which of the following does not fall under high risk under “Zero Tolerance” a) false certification of substantive nature in Branch Manager Monthly Certificate b) Non-checking of VVRs/BGL by a person other than whom they relate to c) Maintenance of password secrecy and prompt reporting of loss of password of the INB Customer to the Security Manager, INB Mumbai. d) Proper custody and accounting of preprinted INB Kit, ATM Pin Mailers and Welcome Kit e) None of the above

10.

What is the revised periodicity of RFIA with effect from 01-01-2006 for branches scoring >85% under Group I? a) within 18 months c) within 15 months

11.

What is the revised periodicity of RFIA with effect from 01-01-2006 for branches scoring 70 -85 % Group II? a) within 21 months c) within 15 months

12.

b) within 12 months d) within 21 months


What is the revised periodicity of RFIA with effect from 01-01-2006 for branches scoring 50%> under Group I ? a) within 18 months c) within 12 months


35

STATE BANK LEARNING CENTER, PANCHKULA 13. What is the revised periodicity of RFIA with effect from 01-01-2006 for branches scoring 50%> under Group II and III? a) within 12 months c) within 15 months 14.


What is the revised periodicity of RFIA with effect from 01-01-2006 for branches < scoring 50%? a) 10-12 months c) 8-10 months

15.

What is the revised periodicity of RFIA with effect from 01-01-2006 for Newly opened branches? a) b) c) d)

16.

17.

within 18 months within 12 months irrespective of Group within 6-8 months irrespective of Group within 10 months

One of the following is not covered under operational risk----a) customer service b) control system c) general branch mangement d) problem loan management One of the following is not covered under credit risk---? a) b) c) d)

18.

b) 6-8 months d) 7-9 months

Pre sanction Problem loan management remittances post sanction

Post Audit process comprises of------a) Rectification of irregularities by branches b) Causes of deficiencies to be identified c) Controllers to submit action taken for correction along with recommendations for closer of report d) All the above

19.

Credit Audit covers borrower accounts with credit limits -----a) b) c) d)

Rs. 5 crore and above Rs10 crore and above Rs. 15 crore and above Rs.3 crore and above

36


Systems audit has been renamed as a) b) c) d)

21.

Procedure audit Operational audit Compliance audit Systems and procedure audit RBI Audit is conducted under------?

a) b) c) d)

section 35 of Banking Regulation Act section 51 of Banking Regulation Act section 35 of RBI Act section 35 of SBI Act

KEY TO ASSIGNMENT INSPECTION/AUDIT-II

Q. Ans. Q. Ans. Q. Ans.

1 c 11 d 21 a

2 a 12 c

3 b 13 a

4 d 14 b

5 a 15 b

6 c 16 d

7 b 17 d

8 a 18 d

9 e 19 b

10 a 20 d

37

STATE BANK LEARNING CENTER, PANCHKULA BASEL II, Capital Adequacy & Risk Managment 1. The world’s oldest international financial organization, Bank for International Settlements (BIS) having 55 member central banks is situated at: a) b) c) d)

Paris Tokyo London Basle/Basel, Switzerland

2. The Basel Committee on Banking Supervision [BCBS], is a committee of central banks that meets_____________ at the Bank for International Settlement [BIS] in Basel, to provide broad policy guidelines governing the capital adequacy of internationally active banks a) b) c) d)

Every month Every three months Every six months Once in a year

3. The Basel Committee on Banking Supervision [BCBS], was set up in ________ by G-10 countries. a) b) c) d)

1970 1972 1975 1978

4. Basel standards are being used as a benchmark by ____________ in conducting their assessment of the banking system of a country. a) b) c) d)

IMF World Bank Both of the above None of the above

5. Basel II norms relate to a) b) c) d)

Corporate Governance Non Performing Assets Capital Adequacy Ratio (CAR) None of the above

38

STATE BANK LEARNING CENTER, PANCHKULA 6. The Rationale for maintaining Capital Adequacy is a) b) c) d) 7.

To meet the unexpected losses or losses beyond normal range of operations To meet the expected losses Both of the above None of the above

International Convergence of Capital Measurement and Capital Standards: A Revised Framework (Basel II ) released by BCBS on __________ a) b) c) d)

26 June 2004 30 June 2004 30 August 2004 26 July 2004

8. The Basel II revised framework consists of three mutually reinforcing pillars. Which among the following is not the reinforcing pillar ? a) b) c) d)

Minimum capital requirement Market discipline Supervisory review of capital adequacy ALM Management

9. The Risks Which Determine Capital Requirement under Pillar 1 a) b) c) d) 10.

Credit Risk Market Risk Operational Risk All of the above

As per Basel II Capital Adequacy Ratio should be : a) b) c) d)

8% 9% 10% 11%

11. As per RBI Capital Adequacy Ratio should be : a) b) c) d)

8% 9% 10% 11%

39


As per Basel II Capital Adequacy Ratio is : a) b) c) d)

13.

As per the Prudential Guidelines on Capital Adequacy issued by RBI, Indian banks having operational presence outside India shall adopt Basic Indicator Approach with effect from a) b) c) d)

14.

Tier 1 + Tier 2/ Risk Weighted Assets for Credit risk + Operational risk Tier 1 + Tier 2/ Risk Weighted Assets for Credit risk +Market risk Tier 1 + Tier 2/ Risk Weighted Assets for Market risk + Operational risk Tier 1 + Tier 2/ Risk Weighted Assets for Credit risk +Market risk + Operational risk

March 31, 2010 March 31, 2009 March 31, 2008 March 31, 2007

Basel II recognises the element of diversification of risk in the ___________sector/s and has assigned a lower risk weight for retail exposure under standardised approach. a) b) c) d)

SME AGL Both of the above None of the above

15.

RBI has put forward a framework consisting of few options for calculating operational risk capital charges in a ‘continuum’ of increasing sophistication and risk sensitivity. These options are: a) The Basic Indicator Approach (BIA) b) The Standardised Approach (TSA) c) Advanced Measurement Approaches (AMA). d) All of the above

16.

Under the Basic Indicator Approach, banks have to hold capital for operational risk equal to __________ of average Gross Income for the preceding 3 years. a) b) c) d)

15% 18% 20% 10%

40


For measuring Credit Risk which of the following menu of Approaches is not suggested: a) b) c) d)

18.

For measuring Market Risk which of the following menu of Approaches is not suggested: a) b) c) d)

19.

Standard Approach Internal Models Approach Advanced Measurement Approach (AMA) None of the above

For measuring Operational Risk which of the following menu of Approaches is not suggested: a) b) c) d)

20.

Standardised Approach Foundation Internal Rating Based (IRB) Approach Advanced Internal Rating (IRB) Approach Internal Models Approach

Basic Indicator Approach Standardised Approach Advanced Measurement Approach (AMA) None of the above

The Revised Framework (Basel II) consists of _______Pillar/s a) Minimum Capital Requirements b) Supervisory Review of Capital Adequacy c) Market Discipline d) All of the above

21.

The Bank has migrated to Basel II Framework with effect from: a) b) c) d)

22.

31-03-2008 31-03-2009 31-03-2007 01-01-2008

RBI has asked banks to submit applications for implementing The Standardized Approach (TSA) by: a. b. c. d.

31-03-2008 01-04-2009 01-04-2010 01-01-2010

41


The Standardized Approach (TSA) involves the reclassification of the income and interest expenses of the Bank into ________ business lines: a) 4 b) 8 c) 7 d) 9

24.

For implementation of TSA all new accounts being opened have to be classified either under Retail Banking or Commercial Banking. Which of the following statements are correct in this regard: I. All advances and deposits in PER segment will be treated as Retail Banking. II. Exposure (fund based & non-fund based) to an individual person or persons or to a small business will be treated as Retail Banking. III. All existing Deposit accounts in National Banking Group (NBG) shall be classified under Retail Banking Group. IV. All Deposit accounts in Corporate Accounts Group (CAG) and Mid Corporate Group (MCG) will be treated as Commercial, except Staff accounts. a) c)

25.

(i) & (iv) (i), (iii) & (iv)

b) d)

(ii) , (iii) & (iv) All of the above

For implementation of TSA Small Business is defined as one: (i) (ii) (iii) (iv)

a) c)

where the total annual turnover is less than Rs. 50 crores The maximum aggregate Fund Based exposure should not exceed the absolute threshold limit of Rs. 5 Crores irrespective of the existing segmentation into SSI, C&I. The maximum aggregate exposure (Fund Based + Non Fund Based) should not exceed the absolute threshold limit of Rs. 5 Crores irrespective of the existing segmentation into SSI & C&I. the maximum aggregate exposure (Fund Based + Non Fund Based) should not exceed the absolute threshold limit of Rs. 5 Crores irrespective of the existing segmentation into SSI, C&I or AGL (i) & (iv) (i) & (iii)

b) d)

(i) & (ii) None of the above

42


KEY BASEL II, Capital Adequacy & Risk Managment 1 d 11 b 21 a

2 b 12 d 22 c

3 c 13 c 23 b

4 c 14 a 24 d

5 c 15 d 25 a

6 a 16 a

7 a 17 d

8 d 18 c

9 d 19 d

10 a 20 d

43


BASEL II, CAPITAL ADEQUACY & RISK MANAGMENT 1.

The overall responsibility for overseeing the risk management processes in our Bank is of _____________. a) b) c) d)

2.

The Chairman and convener of Operational Risk Management Committee is ______: a. b. c. d.

3.

b)

c) d)

To limit the impact of a disruption caused by any disaster, on people, processes and infrastructure To ensure continuity, resumption and recovery of critical business processes at an agreed level, to be approved for each business function/Office To take into account the potential for major disasters that could impact an entire region and plan for minimizing its impact on business and staff. All of the above.

Business Continuity policy applies to: a) b) c) d)

5.

Chairman Managing Director & CCRO CGM (Risk Management) CGM (I & A)

The objective/s of the Business Continuity Plan is/are: a)

4.

Chairman The Risk Management Committee of the Board (RMCB) Risk Management Department, Corporate Office None of the above.

Branches only Corporate office LHOs and Administrative Offices All business and functional areas within the Bank which includes all its branches and offices.

As per regulatory requirements, the Bank needs to put in place BCP for all its offices within a specified time frame by ___________. a) b) c) d)

31-03-2008 31-03-2009 31-03-2010 No time limit has been fixed by RBI for the purpose.

44


The deadline for switching over to the New CRA Models (CRA 2007) by all Branches was: a) b) c) d)

7.

30th September, 2007 26th November, 2007 31st December, 2007 31st March, 2008

The new CRA models will be applicable to all accounts in : Non-Trading Sector (C&I, SSI & AGL segments) Trading Sector (Including Services). Both of the above All segments of the Bank

a) b) c) d)

8.

The new CRA models will be applicable to all accounts with Aggregate Exposure (FBL + NFBL) of Rs. ____________ a) b) c) d)

9.

CRA 2007 have ______________ models: a) b) c) d)

10.

Simplified Model Regular Model Both of the above Basel Model

Simplified Model covers accounts with exposure of a) b) c) d)

11.

10 lacs and above 25 lacs and above 50 lacs and above 100 lacs and above

Rs. 10 lacs and above, but upto Rs. 1 crore. Rs. 25 lacs and above, but upto Rs. 2 crores. Rs. 25 lacs and above, but upto Rs. 5 crores. Rs. 100 lacs and above, but upto Rs. 10 crores.

Regular Model covers accounts with exposure a) b) c) d)

above above above above

Rs. 1 crores. Rs. 2 crores. Rs. 5 crores. Rs. 10 crores.

45


12.

Simplified Model has __________rating/s a) b) c) d)

13.

Regular Model has __________rating/s a) b) c) d)

14.

08, SB 08 10, SB 10 12, SB 12 16, SB 16

The Rating Scale under Facility Rating has been expanded to _______ Grades (FR1 to ______) a) b) c) d)

16.

Borrower Rating Facility Rating Country Rating Both (a)&(b)

The Rating Scale under Borrower Rating has been expanded to _______ Grades (SB1 to ______) a) b) c) d)

15.

Borrower Rating Facility Rating Country Rating All of the above

08, FR 08 10, FR 10 12, FR 12 16, FR 16

Hurdle Grade under Borrower Rating is ______ & under Facility Rating is ________ a) b) c) d)

SB 04 & FR 04 SB 08 & FR 08 SB 10 & FR 10 SB 12 & FR 12

46


17.

Units having ____________will be eligible for additional Score under Borrower Rating. a)

Solicited Ratings from recognised External Credit Rating Agencies ( ECRA) Current Ratio > 1.33:1 TOL/TNW < 1.50 None of the above

b) c) d) 18.

Country Ratings are applicable for units having ________Assets/ Cash flows originating outside India: a) b) c) d)

19.

25% or more Assets 25% or more Assets & cash flows 20% or more Assets 20% or more Assets & cash flows

Country Ratings circulated by a) b) c) d)

20.

Credit Policy and Procedures Department Credit Risk Management Department Foreign Department /GMU Kolkata Risk Management Department

While mapping ratings of borrowers as per the new CRA Model vis-à-vis the old Model, which of the following combination is not correct:

(i) (ii) (iii) (iv) a) c)

(ii) (ii) & (iii)

New Rating SB1, SB2 SB3, SB4, SB5 SB 10 SB8, SB9 b) d)

Old Rating SB1 SB2 SB5 SB4 (iii) None of the above

47


21.

While mapping ratings of borrowers as per the new CRA Model vis-à-vis the old Model, which of the following combination is not correct:

(i) (ii) (iii) (iv)

a) c) 22.

(iv) None of the above

All branches, All CPCs Administrative Offices & LHOs All branches, CPCs and other offices of the Bank.

“Risk Register” is required to be introduced by 30-6-2009 and requisite data relating to FY 2009-10 starting from _________ till date should be incorporated therein. a) b) c) d)

24.

b) d)

Old Rating SB 6 SB 3 SB 7 SB 8

"Risk Register" is to be maintained to capture and record the range of high level risk events that might have an impact on the performance of an operating unit and the plans for mitigating them by : a) b) c) d)

23.

(ii) (ii) & (iii)

New Rating SB11, SB12 SB6, SB7 SB 13, SB 14 SB 15, SB 16

01-04-09 01-06-09 01-07-09 01-01-09

Under Centralised Access Control Policy for de-provisioning of user-IDs, the User-ID of the staff who has been posted abroad/ outside the Bank in other organisation etc. (on deputation) will be a) b) c) d)

De-activated. However, it can be activated by LHO functionaries as and when required. Permanently deactivated with past records Deactivated by the respective transferor branch. The user-IDs will be reactivated upon resuming duty at the transferee branch. None of the above.

48


Under Centralised Access Control Policy for de-provisioning of user-IDs, the User-ID of the staff who has been transferred to other branch/office will be a) b) c) d)

26.

Under Centralised Access Control Policy for de-provisioning of user-IDs, the User-IDs not put to use in CBS for 15 days and above will be automatically Deactivated in CBS and reactivation will be made at the request of branch head/ department head/ controller a) c)

27.

De-activated. However, it can be activated by LHO functionaries as and when required. Permanently deactivated with past records Deactivated by the respective transferor branch. The user-IDs will be reactivated upon resuming duty at the transferee branch. None of the above.

15 days 45 days

b) d)

30 days 60 days

One of the prerequisites for migration to Internal Rating Based (IRB) Approach under Credit Risk is that the Bank should have capability to estimate a) Probability of Default (PD) b) Loss Given Default (LGD) c) Exposure at Default (EAD) d) All of the above Key BASEL II, Capital Adequacy & Risk Management

1 b 10 c 19 c

2 b 11 c 20 d

3 d 12 a 21 b

4 d 13 d 22 d

5 d 14 d 23 a

6 b 15 d 24 a

7 c 16 c 25 c

8 b 17 a 26 a

9 c 18 b 27 d

49


ASSIGNMENT – 1 (Deposit Accounts) 01

As per Savings Bank Rules- Minors who can adhere to uniform signature and are not less than 10 years old, can open Savings Bank Accounts in their single name and can maintain a maximum balance of: a) b)

02

Rs 1.00 lac Rs 5.00 lac

Rs.1/Rs.10/-

b) d)

Rs.5/Rs.50/-

Rs. 5/Rs. 50/-

b) d)

Rs. 10/Rs. 100/-

Rs. 5/- per entry Rs.15/- per entry

b) d)

Rs.10/- per entry Rs.20/- per entry

What is the minimum average balance required to be maintained in a current account by Non-Individuals in Rural Areas & Other Areas a) c)

07

b) d)

What are the service charges for debit entries in excess of thirty entries excluding alternate channels like transactions through State Bank ATMs and Internet Banking during a half year in Savings Bank Account? a) c)

06

Rs. 50000/Rs 20.00 lac

What is the minimum permissible amount for withdrawal from a Savings Bank Account? a) c)

05

Rs.50,000/Rs.2,00,000/-

What is the minimum cash amount that can be deposited in a Savings Bank Account? a) c)

04

b) d)

The Maximum deposit in the minor’s a/c under guardianship can be up to-----: a) c)

03

Rs.20,000/Rs.10,000/-

Rs.2500 & Rs. 5000/- respectively b) Rs. 5000 & Rs. 10000/- respectively Rs.2000 & Rs. 5000/- respectively d) Rs.1000 & Rs. 5000/- respectively

What is the minimum average balance required to be maintained in a current account by Individual in Rural Areas & Other Areas a) c)


50


08

What is the minimum average balance required to be maintained in a non cheque book operated Saving Bank account in Rural Areas & Other Areas a) c)

09

What is the minimum average balance required to be maintained in a cheque book operated Saving Bank account in Rural Areas & Other Areas a) c)

10

7 days & 120 months 15days & 60 months

b 7 days & 60 months d) 15 days & 120 months

Rs.1000/Rs.500/-

b) d)

Rs.100/Rs. 5000/-

What is the minimum & maximum period for S.T.D.R accounts? a) c)

14

b 7 days & 60 months d) 15 days & 120 months

What is the minimum amount of deposit that can be accepted as Term / Special Term Deposit: a) c)

13

14 days & 60 months 15days & 60 months

What is the minimum & maximum period for Term Deposits of Rs 1 crore & above ? a) c)

12


What is the minimum & maximum period for Term Deposits of less than Rs 1 crore? a) c)

11.


3 months & 60 months 6 months & 60 months

b) 6 months & 120 months d) 12 months & 120 months

What is the minimum & maximum period for R.D. accounts? a) c)

3 months & 60 months 6 months & 60 months

b) 6 months & 120 months d) 12 months & 120 months

51

STATE BANK LEARNING CENTER, PANCHKULA 15

Recurring Deposits are accepted in monthly installments of : a) b) c) d)

16

The maximum amount of loan that can be granted against Term Deposits is: a) b) c) d)

17.

c) d)

b) d)

Rs.20,000/Rs.1,00,000

A fresh nomination needs to be obtained every time the deposit is renewed The nomination taken at the time of issuance of the deposit can be treated as a valid nomination for the term deposit renewed on maturity unless the depositor would like to change the nomination A fresh nomination is required if the periodicity of deposit at the time of renewal is different from the original periodicity. A fresh nomination is required if the renewed deposit is different from the matured deposit.

On premature payment of time deposits, interest will be applied @ _______below the rate applicable for the period the deposit has run. a) c)

20.

Rs.10,000/Rs.50,000/-

Which of the following statement is correct in respect of a nominated Term deposit account, when it is renewed? a) b)

19

85% of principal amount 85% of principal amount + accrued interest 90% of principal amount 90% of principal amount + accrued interest

U/s 269 T of the Income Tax Act, the branches will make payment of time deposits with interest thereon amounting to Rs.______ and above by way of credit to account/Bank Draft/crossed cheque only: a) c)

18.

Minimum Rs. 50/- Maximum Rs. 1000/Minimum Rs. 100/- Maximum Rs. 10,000/Minimum Rs. 100/- and thereafter in multiple of Rs. 10/Minimum Rs. 100/- Maximum Rs. 5,000/-

Zero % 1%

b) d)

0.5 % 2.0%

As per Section 194A of the Income Tax Act, banks are required to deduct tax at source whenever interest on time deposits credited or paid or likely to be credited or paid to the account of a customer, exceeds Rs _____ per person, per branch in a financial year. a) c)

Rs.5, 000 Rs.2, 500

b) d)

Rs.10, 000 Rs.20, 000 52

STATE BANK LEARNING CENTER, PANCHKULA 21. Which of the following statement/s is/are correct in respect of Saving Bank Account in the name of illiterate person: i) ii) iii) iv) a) c) 22.

Only (i) (i), (ii) & (iv)

b) d)

Both (i) & (ii) All of the above

Which of the following statement/s is/are correct in respect of Saving Bank Account in the name of a person not knowing either English or Hindi language? i) ii) iii) iv) a) c)

23.

An illiterate person may open an ordinary Savings Bank account in his sole name or jointly with other person(s). Where one of the depositors is literate a cheque-operated joint account payable to ‘any one, survivors can be opened The thumb impression of the depositor on the Savings Bank account closing form are to be witnessed in all cases, by an independent witness acceptable to the Bank. Accounts of illiterate depositors may be transferred, at their request, from one branch to another like the other accounts.

Account can be opened in regional language known to person. Account can’t be opened Account can be opened jointly with the person knowing English or Hindi language. Account can be opened on the same terms and conditions as for an illiterate person if not knowing regional language also. Only (i) (i), (iii) & (iv)

b) d)

Both (i) & (iii) Only (ii)

Which of the following statement/s is/are correct in respect of Saving Bank Account in the name of a visually impaired / blind person? i) ii) iii)

iv) a) c)

If a blind person is illiterate, or literate but unable to sign uniformly, account can be opened on the same terms and conditions as for an illiterate person. Operation by cheque in the blind / visually impaired depositor's account in the sole name is not permitted. Operation by cheque in the blind / visually impaired depositor's account in the sole name may continue to be permitted, only under the signature of a duly constituted ‘power of attorney’ of the account holder or after furnishing an undertaking that the self operated cheque book facility be provided / extended to the depositor / customer at her / his own risk. In case of self operated cheque facility account of visually impaired / blind depositors, the third party cash payment of self drawn cheques is not permitted. Only (i) b) Both (i) & (ii) (i), (iii) & (iv) d) None of the above 53


24.

Which of the following statement/s is/are correct in respect of Saving Bank Account in the name of pensioners? i) ii) iii) iv) a) c)

25.

Only (i) (i), (ii) & (iv)

b) d)


In satisfactorily conducted accounts, immediate credit will be afforded for outstation instruments deposited up to___________: a) c)

26.

Rs. 15,000 Rs. 20,000

b) d)

Rs. 10, 000 Rs. 30, 000

Which of the following statement/s is/are correct in respect of issuance of TDR/STDR? i)

The receipts for fixed deposits viz. Term Deposit / Special Term Deposits is to be issued in the form of a system generated advice on preprinted Non security form look alike receipt format Statement (i) is applicable to all branches of the bank irrespective of the location and type of the branch Statement (i) is applicable to all market segments Statement (i) is applicable to any amount of deposit tendered Statement (i) is not applicable to Term Deposit / Special Term Deposits received under State Bank Tax Saving Scheme 2006.

ii) iii) iv) v) a) c) 27.

50% concession is being allowed in minimum balance to be maintained. 50% concession is being allowed in service charges for not maintaining minimum balance. Account can be opened in joint names with the family pensioner nominated in the PPO, in case pension paying Department permits. Accounts of pensioners may be transferred, at their request, from one branch to another.

Only (i) (i), (ii) (iii) & (iv)

b) d)


Loans against NR(E)RA and FCNR(B) deposits either to the depositors or third parties can be granted up to a maximum limit of_________. a) c)

Rs. 20 lac Rs.100 lac

b) d)

Rs. 50 lac Rs. 500 lac

54


Key to Assignment – 1 (Deposit Accounts) Q. Ans. Q. Ans. Q. Ans.

1 d 11 a 21 d

2 c 12 a 22 c

3 c 13 b 23 c

4 c 14 d 24 d

5 a 15 c 25 d

6 b 16 d 26 d

7 a 17 b 27 c

8 a 18 b

9 b 19 c

10 d 20 b

55


ASSIGNMENT – 2 (Deposit Accounts) 1. The minimum amount of initial deposit allowable for Multi Option Deposit Accounts (MODs) is:____________. a) Rs. 10,000 c) Rs. 1,000

b) Rs. 5,000 d) Rs. 500

2 Multi Option Deposit Scheme, is the combination of : a) TDR/STDR & R.D. c) S.B. A/c & TDR/STDR

b) TDR/STDR & C. A/c / S.B. A/c d) S.B. A/c & R.D.

3. For partial withdrawal/ break up of MODs the unit amount is: a) Rs. 10,000 c) Rs. 1,000

b) Rs. 5,000 d) Rs. 500

4. What is the maturity period of Multi Option Deposits? a) b) c) d)

6 months and above, maximum 3 years. 1 year and above, maximum 3 years. 1 year and above, maximum 5 years 1 year and above, maximum 10 years

5. While making premature payment of MODS (unitised break up), which of the following method will be applicable-----a) b) c) d)

First in first out (FIFO) Last in first out (LIFO) Any one can be broken as opted by customer. None of the above.

6. What is the maturity period of MODs issued under Saving Plus Scheme? a) b) c) d)

6 months and above, maximum 5 years. 1 year and above, maximum 3 years. 1 year and above, maximum 5 years 6 months, 12 months, 24 months or 36 months.

7. Under ‘Saving Plus Account’ the minimum ‘Threshold Amount’ should be Rs. _______, however the depositor may opt for a higher threshold amount. a) 15,000/c) 1,000/-

b) 10,000/d) 5,000/56


8. In Saving plus Scheme the ‘Auto Sweep’ is operative on _______________and MODs are issued for eligible amount. a) 5th and 20th of every month b) 10th and 20th of every month c) Once a week (any day) or once a month (any date) as opted by the depositor. d) 15th and 30th of every month 9. Loan against deposits held under Saving Plus Scheme is granted up to--------a) 75% of deposit c) 90% of deposit

b) 85% of deposit d) Not permitted

10. Under Liquid Term Deposit (LTD) scheme, the maximum period of deposit is-----a) One year c) 7 Year

b) 5 Years d) 10 Years

11. The minimum amount of Liquid Term Deposit (LTD) is-----a) Rs. 1,500/c) Rs.25000/-

b) Rs.10000/d) Rs.50,000/-

12. Under LTD Scheme, the partial withdrawal is permitted in units of Rs. --------a) Rs.500/c) Rs.5000/-

b) Rs.1000/d) Rs.10, 000/-

13. Under Liquid Term Deposit (LTD) scheme, the minimum period of deposit is-----a) 15 days c) 1 year

b) 6 months d) 7 days

14. Banks are required to deduct tax at source (TDS) from interest payable on Time Deposits wherever such interest paid or accrued per person and per branch during a financial year exceeds -------------a) Rs.20000 c) Rs.5000

b) Rs.10000 d) Rs.50000

57


15. The minimum amount of deposit under the Kisan Mitra Jama Yojna is Rs.___________ and in multiples of ___________. a) Rs. 1,000 and Rs. 100 c) Rs. 5,000 and Rs. 1,000

b) Rs. 1,000 and Rs. 500 d) Rs. 1,500 and Rs. 100

16. The minimum amount of withdrawal under the Kisan Mitra Jama Yojna is stipulated at ______ and in multiple of ________ .. a) Rs. 100/- and Rs 100/c) Rs. 1,000/- and Rs. 500/-

b) Rs. 500/- and Rs. 100/d) Rs. 1,500/- and Rs. 100/-

17. The minimum period of deposit under the Kisan Mitra Jama Yojna is: _______________. a) 12 months c) 3 months

b) 6 months d) 15 days.

18. Under the Kisan Mitra Jama Yojna deposit can be accepted for a maximum period of _______. a) 3 years c) 7 years

b) 5 years d) 10 years

19. The minimum amount of Corporate Liquid Term Deposit (CLTD) is-----a) Rs.5, 000/c) Rs.25000/-

b) Rs.10000/d) Rs.50, 000/-

20. Under CLTD Scheme, the minimum amount of deposit allowable subsequent to initial deposit is: a) Rs. 5000/c) Rs. 25,000/-

b) Rs. 10000/d) Rs. 50,000/Key to Assignment – 2 (Deposit Accounts)

Q. Ans. Q. Ans.

1 a 11 a

2 b 12 a

3 c 13 c

4 c 14 b

5 c 15 d

6 c 16 b

7 d 17 a

8 c 18 d

9 d 19 d

10 b 20 c

58


ASSIGNMENT – 3 (Deposit Accounts) 1) To be eligible for differential rate of interest under Senior Citizen Deposit Scheme, the minimum age of the depositor is-------a) 58 years c) 65 years

b) 60 years d) none of the above

2) Under Senior Citizen Deposit Scheme, the minimum period of deposit is________. a) 3 months c) 1 year

b) 6 months d) 15 days

3) Under Senior Citizen Deposit Scheme, the minimum amount of deposit is_______. a) Rs. 500/c) Rs. 5,000/-

b) Rs. 1,000/d) Rs. 10,000/-

4) Differential rate of interest under Senior Citizen Deposit Scheme is ---------------a) 1% c) 0.25%

b) 0.50% d) None of the above

5) Which of the following statement is not true in respect of CAPGAIN PLUS Scheme? a) b) c) d)

It is a product for parking of capital gains for a max. period of 3 years. Funds parked in the account are to be utilised for capital investment. All branches are authorised to open accounts under CAPGAIN Scheme. None of the above.

6) Under CAPGAIN PLUS Scheme, the minimum amount of deposit which can be held in TDR is a) Rs. 500/c) Rs. 5,000/-

b) Rs. 1,000/d) Rs. 10,000/-

7) Amount withdrawn under CAPGAIN PLUS Scheme is to be utilised within ---------------days. a) 15 c) 60

b) 30 d) None of the above

59

STATE BANK LEARNING CENTER, PANCHKULA 8) Which of the following facilities are available to the account holder under CAPGAIN PLUS Scheme. a) Cheque Book c) Loan facility

b) ATM Card d) None of the above

9) Under CAPGAIN PLUS Scheme withdrawal of amount can be permitted only by way of DD in favour of payee if amount of such withdrawal exceeds Rs. ----------a) Rs. 5000/c) Rs. 25,000/-

b) Rs. 10,000/d) Rs. 50,000/-

10) No Frill Account can be opened by an individual if his a) b) c) d)

Age is > 10 years Age is > 10years & earning is Rs. 5000/- or less Age is > 18 years Age is > 18 years & earning is Rs. 5000/- or less

11) Initial deposit required to open No Frill Account is Rs. ___________and thereafter minimum balance of Rs. ________ can be maintained. a) c)

Rs 50 & Rs. 100 respectively Rs 50 & Rs. 50 respectively

b) Rs 100 & Rs. 100 respectively d) Rs 50 & Rs. 0 respectively

12) Maximum balance that can be maintained in the No Frill Account is Rs. ___________ a) Rs 50,000 b) Rs 25,000 c) Rs 10,000 d) Rs 1,00,000 13) Rate of interest payable in No Frill Account is: a) As applicable to Savings Bank account if a minimum balance of Rs.500/- or more is maintained. b) No interest is to be paid. c) As applicable to Savings Bank account. d) None of the above.

60


14) Which of the following scheme/s have been discontinued from 01-04-2009. a) Money Box c) Both of the above

b) Kanak Dhara d) None of the above

15) Which of the following scheme has been discontinued from 01.06.2011. a) Annuity Deposit Scheme c) SB Yuva Account

b) Floating Rate Term deposit d) None of the above

Key to Assignment – 3 (Deposit Accounts)

Q. A Q A

1 b 11 d

2 c 12 c

3 d 13 c

4 b 14 c

5 d 15 b

6 c

7 c

8 d

9 c

10 d

61

STATE BANK LEARNING CENTER, PANCHKULA SALARY PACKAGE ACCOUNTS 1

Corporate Salary Package Account will be available to the employees of a Corporate or Institution, only when the organisation has: a)

A minimum number of 25 employees with a minimum payout of Rs.1.25 lacs p.m., A minimum number of 20 employees with a minimum payout of Rs.1.00 lacs p.m., Minimum gross monthly salary per account of Rs. 5,000/Both (a) & (c) Both (b) & (c)

b) c) d) e) 2.

PBBU Heads of the Circle have the discretion to permit deviation in eligibility criteria and approve a tie up with a Corporate/ Institution having minimum number of ___ employees opening their salary accounts with us. a) b) c) d)

3.

10 15 20 No deviation is allowed

Circle CGM may permit coverage of employees having salaries of less than Rs. 5,000 per month under “Silver” variant, provided : (a) (b)

All the salary accounts are maintained with our Bank The employees drawing gross salary of less than Rs.5,000/- should not be more than 20% of total. The employees drawing gross salary of less than Rs.5,000/- should not be more than 25% of total. Both (a) & (b) Both (a) & (c)

(c) (d) e) 4.

The Corporate Salary Package has _______ variants: a) c)

5.

2 4

b) d)

3 5

SBI Vishesh status is being provided for holders: a) b) c) d)

Platinum Account Gold Account Diamond Account Both (a) & (c)

62


Which of the following statement/s is/are correct in respect of Silver variant of Corporate Salary Package Account: i. ii. iii. iv.

Gross Monthly Salary should be between Rs. 5,000/- and Rs. 20,000/-. Free Domestic ATM Card is provided Unlimited cheque book leaves free in a year except for bulk requirementfor EMIs payable to other banks/FIs Charges are recovered for Cash Deposit transactions in excess of 3 transactions per month

a) Only (i) c) (i), (ii) & (iv) 7.

Gross Monthly Salary should be between Rs. 20,000/- and Rs. 50,000/Free International Gold Debit Card is provided Unlimited cheque book leaves free in a year Charges are recovered for Cash Deposit transactions in excess of 3 transactions per month a) Only (i) c) (i), (ii) & (iii)

b) d)


Which of the following statement/s is/are correct in respect of Diamond variant of Corporate Salary Package Account: i. ii. iii. iv.

Gross Monthly Salary should be between Rs. 50,000/- and Rs. 1.00 lac. Free International Gold Debit Card is provided Unlimited cheque book leaves free in a year No limit on number of cash deposit transactions. a) Only (i) c) (i), (ii) & (iv)

9.


Which of the following statement/s is/are correct in respect of Gold variant of Corporate Salary Package Account: i. ii. iii. iv.

8.

b) d)

b) d)


Which of the following statement/s is/are correct in respect of Platinum variant of Corporate Salary Package Account: i. ii. iii. iv.

Gross Monthly Salary should be more than Rs. 1,00,000/-. Free International Gold Debit Card is provided No limit on the number of Cheques. No limit on number of cash deposit transactions. a) Only (i) c) (i), (ii) & (iv)

b) d)

Both (i) & (ii) All of the above 63


10.

Overdraft facility limited to 2 month’s Net Salary can be provided under Corporate Salary Package Account to (a) (b) (c) (d)

11.

The Defence Salary Package has _______ variants: a) c)

12

2 4

b) d)

3 5

Army personnel will be categorised into eligible variants as per their : a) b) c) d)

13

Platinum Account Silver Account, Gold Account, Silver Account, Gold Account & Diamond Account All the four variants

Ranks Salaries Ranks and Salaries both None of the above.

Which of the following statement/s is/are correct in respect of Defence Salary Package Account? i. ii. iii. iv.

All Army personnel including the Defence Civilian Staff will be eligible to open DSP accounts. Currently however, civilians have been excluded. The facilities under DSP accounts will be continued even for pension accounts after retirement, provided the officer/ PBOR has had his salary account with us and also draws his pension through us. The Army numbers to be used in ID First field. The DSP account can be operated as a joint account. a) Only (i) c) (i), (ii) & (iv)

b) d)


14. Which of the following statement/s is/are correct in respect of Salary Package Account? a) RTGS/NEFT charges to be recovered as applicable to other accounts. b) RTGS/NEFT charges to be recovered at concessional rates upto Rs. 2 Lacs and thereafter as applicable to other accounts c) RTGS/NEFT charges waived whilst uploading salary/other credits to employee accounts through our CINB.

64


15.

Which of the following statement/s is/are correct in respect of Platinum variant of Salary Package Account: i. ATM Issue and Annual Maintenance Fee of Rs. 300/- from second year waived. ii. Any Number of transactions subject to maximum Rs. 1,00,000/- per day in India (USD $ 2,000 per day – Abroad). iii. Personal Accident Insurance cover Rs. 5 lacs iv. Personal Accident Insurance cover Rs. 2 lacs a) Only (I & iv) c) (i), (ii) & (iii)

16.

b) d)

Both (i) & (ii) Only ( i) & (iii)

Which of the following statement/s is/are correct in respect of Salary Package Account: facility all variants with minimum i.For availing overdraft residual service of 6 months are eligible for Overdraft up to 2 months Net Monthly Income adjustable from next month’s salary (ies) within a period of 6 months. ii.For Platinum account holders the application for availing overdraft to be obtained at the time of opening new accounts. iii.For availing the facility the account holder of all other variants have to submit an application for overdraft at the time of availing the facility. iv.All of the above.

1 d 11 c

2 a 12 a

3 d 13 d

KEY SALARY PACKAGE ACCOUNTS 4 5 6 7 8 c a d c c 14 15 16 c c d

9 d

10 d

65

STATE BANK LEARNING CENTER, PANCHKULA SBI Gold Deposit scheme & Rupee Loan against gold deposit 1.

2.

Who can open Gold Deposit Account? (i) (ii) (iii) (iv)

Individual (Singly or jointly) Hindu Undivided Family (HUF) Trust Company

(a) (c)

Only (i) Both (i) & (ii)

Which of the following statement/s is not correct in respect of joint account under SBI Gold Deposit scheme? a) b) c) d)

3.

In single name in individual capacity In Joint names in individual capacity To all type of depositors Both a & b

____ Branch has been designated as “Nodal Branch” for Gold Deposit Scheme: d) e) f) g)

5.

Facility for deposits in two names, as `Former or Survivor', will be available to all categories of depositors. Subsequent addition of a second holder with payment instruction being `Former or Survivor' will also be permitted. The rights of the second holder will automatically lapse, when the first applicant transfers the SBI Gold Deposit Certificate to another person. None of the above

Under SBI Gold Deposit nomination facility will be available if the deposit is: a) b) c) d)

4.

Mumbai Main Branch Overseas Branch, Mumbai New Delhi Main Branch Nagpur Branch

Under SBI Gold Deposit Minimum Quantity of gold that can be deposited is : a) 50 gms (gross) c) 500 gms (net)

6.

(b) (i) ,(ii) & (iii) (d) All of the above

b) d)

100 gms (gross) 500 gms (gross)

Maximum tenor of Deposit under Under SBI Gold Deposit is : a) c)

3 years 7 years

b) d)

5 years 10 years 66


7.

Which of the following statement/s is not correct in respect of payment of interest under SBI Gold Deposit scheme? a) b) c) d)

8.

The depositor will have the option of taking interest annually as on 31st March every year (i.e. non-cumulative) or compound it annually for payment at the time of maturity(i.e. cumulative). The interest will be calculated in grams but paid in rupees only. Interest will be payable from the date of deposit of gold with the designated branch. None of the above

Gold will be accepted in the ___________form. a) b) c) d)

9.

Gold bars & coins Scrap Jewellery without any stone, gem, etc. a) & c)

Which of the following statement/s is not correct in respect of repayment/ redemption under SBI Gold Deposit scheme? i)

The depositor will have the option for redemption of the principal on maturity either in gold or in rupees For redemption in gold, the deposit will be redeemed in gold of 995/999 fineness, in the multiples of 10 gm bars, at the discretion of the Bank. Any fraction quantity in excess of multiple of 10 gm bars will be repaid in rupees only. In case the repayment in rupees is taken after the date of maturity, the rate applicable on the date of payment will be taken into account. In case the maturity date is a non-business day in Mumbai, the deposit will be redeemed on the next working day (at the conversion rate of the date of maturity) and no additional interest will be paid for extra day(s).

ii)

iii) iv)

(a) (c) 10.

Only (iv) Both (i) & (ii)

(b) Only (iii) (d) None of the above

Which of the following statement/s is not correct in respect of Rupee Loan against gold deposit? i. ii. iii. iv.

Loan can be granted to all depositors under Gold Deposit Scheme. In case of joint holding loan can be granted to all the depositors jointly. Loan can not be given against deposits held on behalf of a minor. Loan can not be given to third parties against deposits held by a Trust/ HUF/ Minor.

67

STATE BANK LEARNING CENTER, PANCHKULA (a) (c) 11.

Only (i) Both (ii) & (iii)

(b) Only (iii) (d) None of the above

What is the minimum loan amount under Rupee Loan against gold deposit? a) Rs. 50,000/c) Rs. 5,00,000/-

12.

b) d)

What is the maximum loan amount under Rupee Loan against gold deposit without any administrative clearance? a) Rs. 500,00,000/c) Rs. 50,00,000/-

13.

b) d)

Rs. 100,00,000/Rs. 10,00,000/-

Margin under Rupee Loan against gold deposit is _____ of the principal value of the Gold Deposit Certificate. a) 20%

14.

Rs. 1,00,000/Rs. 10,00,000/-

b)

25%

c) 30%

40%.

Loan under Rupee Loan against gold deposit may be sanctioned by : a) Designated branch c) Nodal Branch

15.

d)

b) d)

All branches Both a) & c)

Which of the following statement/s is not correct in respect of Rupee Loan against gold deposit? a) b) c) d)

The loan can be granted for any purpose. Maximum period of loan is 36 months. The loan can be either in the form of a Demand Loan or an Overdraft. None of the above. KEY SBI Gold Deposit scheme & Rupee Loan against gold deposit

1 d 11 b

2 a 12 a

3 a 13 b

4 b 14 b

5 d 15 b

6 b

7 c

8 b

9 b

10 c

68

STATE BANK LEARNING CENTER, PANCHKULA ‘P’ SEGMENT ADVANCES HOME LOANS ASSIGNMENT – 1 1.

Individual(s) over ______ years of age with independent source of regular income are eligible for finance under Housing Loan Scheme. a) c)

2

18 21

b) Project cost d) all of the above

30 55

b) 40 d) 25

For determining maximum permissible Housing Loan amount of a customer having Annual Income above Rs. 2 lacs and upto Rs. 5 lacs, the EMI/NMI ratio should not exceed__________% a) c)

6.

LTV EMI/NMI ratio

For determining maximum permissible Housing Loan amount of a customer having Annual Income upto Rs. 2 lacs, the EMI/NMI ratio should not exceed__________% a) c)

5.

Cost of land, additional amenities Insurance premium, charges for purchase Stamp duty & registration All of above

The maximum permissible loan amount under H/L scheme, for an applicant is linked to _________ a) c)

4.

20 25

The total project cost of Housing Loan includes: a) b) c) d)

3.

b) d)

40 55

b) 50 d) 60

For determining maximum permissible Housing Loan amount of a customer having Annual Income above Rs. 5 lacs and upto Rs10.00lacs, the EMI/NMI ratio should not exceed__________% a) c)

40 55

b) 50 d) 60

69


7.

The authority for increase in EMI/NMI ratio upto____ vests with controller of Branch/RACPC, depending on the family size and availability of disposable surplus income. a) c)

8.

5% 2

1% 10%

What is the maximum repayment period under HL Scheme for individuals upto 45 years of age? a) c)

9.

b) d)

12 years 20 years

b) d)

15 years 25 years subject to liquidation of the loan before the borrower reaches the age of 70 years

Maximum no of borrowers should not ordinarily exceed ------a) 5 b) 3 c) 6 d) no limit

10. In addition to the applicant’s income, Income of spouse/children /parents / siblings may be considered for arriving at maximum loan amount a) spouse /children b) parents c) siblings d) all of the above 11.

HL should be ordinarily repaid by the age of _____years. a) 58 b) 70 c) 60 d) No such limit

12.

Fixed rate of interest can be charged if repayment period do not Exceed ___years a) c)

13.

20 5

b) d)

10 25

The maximum permissible loan amount under H.L. Scheme for repairs or renovation of house (without obtaining prior administrative clearance of the Network GM), is:__ a) c)

Rs. 5 lakh . Rs. 15 lakh

b) d)

Rs. 10 lakh Rs. 20 lakh

70


The maximum permissible loan amount under H.L. Scheme for furnishing and consumer durables is: _____________. a) 10 % of the project cost or Rs. 2 lacs whichever is less. b) 20 % of the project cost or Rs. 3 lacs whichever is less. c) 10 % of the project cost or Rs. 3 lacs whichever is less. d) 10 % of the project cost or Rs. 4 lacs whichever is less.

15.

The minimum margin required under H.L. Scheme for house under construction, for a loan upto Rs 75 lacs , is : __________. a) c)

16.

15% 25 %

10 % of project cost 20 % of project cost

b) d)


Minimum loan amount in case of home loan to businessman is Rs------lac a) c)

18.

b) d)

The minimum margin required under H.L. Scheme for house under construction, for a loan above Rs 75 lacs , is : __________. a) c)

17.

10 % 20 %

25 30

b) d)

10 40

Home loan may be sanctioned for reimbursement of investment made by the borrower in housing from own resources during the preceding -------months. a)6 b)10 c)12 d)24

19. While computing maximum eligible loan amount, expected rent accruals from the proposed house/flat being let out (net of taxes, cess etc.) may be reckoned, subject to maximum amount a) equivalent to the applicant’s Net Monthly Income(NMI)/Net Annual Income (NAI). b) equivalent to the amount of annual rent or annual income whichever is lower c) equivalent to the cost of construction d) equivalent to the 50% of annual rent 20. Rental income is not allowed to be considered when giving loan for a)purchase of house b)construction of house c)purchase of flat d)purchase of plot 71


21.

Depreciation is allowed to be added back to compute net annual income in case of a) all businessmen. b) only those business being run on proprietorship basis which have obtained loan for the asset on which depreciation is claimed from our bank. c) those borrowers who have availed any loan from our bankl. d) Salaried employees who are obtaining loan for furniture and furnishings

KEY HOME LOANS ASSIGNMENT – 1

Q. Ans. Q. Ans.

1 a 11 b

2 d 12 b

3 d 13 b

4 a 14 c

5 b 15 c

6 c 16 b

7 a 17 a

8 d 18 c

9 b 19 a

10 d 20 d

21 b

72


‘P’ SEGMENT ADVANCES HOME LOANS & HOME LOANS TO NRIs ASSIGNMENT – 2 1.

No. of Co-borrower is ordinarily restricted to maximum______ including spouse with son/daughter. However AGM(Region/Branch) can relax maximum no of coborrowers. a) 1 b) 2 c) 3 d) no such limit

2.

The Moratorium period ordinarily available under HL Scheme building upto 7 floors is: ______________ a) 12 months from the date of completion, whichever is earlier b) 18 months from the date of completion, whichever is earlier c) 18 months from the date of completion, whichever is earlier d) 24 months from the date of completion, whichever is earlier

3.

first disbursement or 2 months after first disbursement or 2 months after first disbursement or 3 months after first disbursement or 2 months after

Under Housing Loan Scheme, no prior administrative clearance is required for loans upto: ___, if the proposal is strictly within the scheme. a) c)

Rs. 5 crore Rs. 10 crore

b) d)

Rs. 7.5crore Rs. 15 crore

4.

With effect from 1st May 2011 processing fees is to be recovered at the time of a) pre sanction b) initial scrutiny c)Sanctioning d)documentation

5.

Capitalisation of pre EMI interest is allowed only if the moratorium period does not exceed-----months a) 24 b) 36 c) 18 d) 6

6.

Under Housing Loan Scheme, prior administrative clearance (from next higher authority) is required in respect of a loan for purchase of a house which is more than _____ years old. a) c)

20 10

b) d)

15 7

73


Loan to value ratio in cas of loan above Rs 20.00lac for home under construction should be ---------% a) c)

75 80

b) d)

60 90

8. For Home Loans above Rs.25000/- , if the irregularity exceeds EMI or Installment amount, for a period of one month, then penal interest should be recovered ------------% p.a. (over and above the applicable interest rate) on the overdue amount for the period of default a) 2 b) 1. c) 3 d) 2.5 9. In case son/daughter /sibling /parent’s income is clubbed for arriving at loan amount repayment has to be made through an account a) in the name of any one of the borrower/ guarantor b) in the name of any one of the borrower only c) in the joint name of all the borrowers and guarantor d) in the name of guarantor only 10.

Home loan borrowers can claim Income Tax benefits under section 80C upto Rs. ___________ in respect of principal repayment of Home Loans. a) c)

20,000/1,00,000/-

b) d)

30,000/1,50,000/-

11.

As per RBI guidelines housing loan for construction ,purchase of dwelling unit upto Rs -----lac shall be eligible for classification under prirority sector a) 10 b) 25 c) 15 d) 20

12.

Co borrower/guarantors whose income is being clubbed should normally be employed ,in profession or be engaged in business for a minimum period of ------years a) c)

13.

3 1

b) d)

5 2

To be eligible under Housing Loan Scheme for NRIs / PIO, the NRIs/PIOs should be earning a minimum NMI equivalent to US$ ________or a NAI equivalent to US$ _____. 74


a) c) 14.

500(NMI) / 6000(NAI) 2000(NMI) / 24000(NAI)

b) d)

1000(NMI) / 12000(NAI) 2500(NMI) / 30000(NAI)

The maximum amount of Housing Loan for NRIs/PIOs is detemined by a) b) c) d)

EMI/NMI of the borrower age of the borrowe stay of the borrower abroad None of the above

15.

In case loan amount above Rs 10.00lacs is to be given foe pair and renovation administrative clearance will be given by -------a) CGM of circle b) GM of network c) CGM PBBU d) CCCI

16.

What is the maximum repayment period under HL Scheme for NRIs/PIOs upto 35 years of age subject to stipulation that the loan should be liquidated by the age of 60 years or by the age of retirement, whichever occurs earlier? a) c)

17.

15 years 25 years

12 years 20 years

b) d)

15 years 25 years

The minimum loan amount of Housing Loan under HL Scheme for NRIs/PIOs is :_________ a) c)

19.

b) d)

What is the maximum repayment period under HL Scheme for NRIs/PIOs above 35 years and upto 45 years of age subject to stipulation that the loan should be liquidated by the age of 60 years or by the age of retirement, whichever occurs earlier? a) c)

18.

12 years 20 years

Rs. 1 lac Rs. 3 lac

b) d)

Rs. 2 lac Rs. 5 lac

The Maximum Loan amount for repair and renovation by NRI is limited to a) Rs. 10 lac b) Rs. 15 lac c) Rs. 20 lac d) Rs. 25 lac

75


The Maximum Loan amount for furnishing and consumer durables under HL Scheme for NRIs/PIOs is :______________ a) b) c) d)

21.

One of the eligibility criteria for NRIs to avail of housing loan is that they should have been employed abroad for at least _______ years and presently holding a valid job contract/work permit and aged above____ years. a) c)

22.

1 2,21

b) d)

2, 18 4

Maximum period of repayment permotted to an NRI borrower is ------years or date of retirement whichever is earlier. a) c)

23

10 % of the project cost or Rs.3 lacs, whichever is lower 10 % of the project cost or Rs.5 lacs, whichever is lower 15 % of the project cost or Rs.5 lacs, whichever is lower 10 % of the project cost with no ceiling.

50 75

b) 60 d) 65

The AGM (Region)/(Branch) may permit the repayment of loan upto the age of----years provided the approving authority is satisfied about the continuity of the income a)65 c)72

b)70 d)75

Key to Assignment – HOME LOANS 2 Q. Ans. Q. Ans. Q. Ans.

1 c 12 c 23 b

2 b 13 a

3 b 14 a

4 d 15 b

5 c 16 d

6 b 17 c

7 c 18 c

8 a 19 a

9 c 20 a

10 c 21 b

11 d 22 b

76


‘HOME LOAN ASSIGNMENT – 3 YUVA/PAL HOUSING LOAN QUESTIONNAIRE 1.Loan under Yuva housing loan is to be repaid within a fixed term of a)25yrs

b)10 yrs

c)20yrs

d)15yrs

2.Minimum net monthly income for availing loan under Yuva Home loan is Rs-----a)25000/-

b)50000/-

c)100000/-

d)60000/-

3.Loan under this scheme can be extended to people in the age group between -------and -----a)18 , 25

b)21,

35

c)30,

40

d)21, 35

4.Under this loan a person can get ------% more than the amount calculated as per the normal EMI/NMI ratio. a) 20

b)15

c)25

d)30

5.Minimum amount for which SBI home loan PAL can be extended is a)Rs30.00lacs

b)Rs25.00lacs

c)Rs10.00lacs

6. SBI home loan PAL can be

extended

a)Branch only

c)Either at branch or racpc

b)Racpc only

d)Rs20.00lacs

at d)RBO

7.PAL will be valid for --------a) 3mths

b)6mths

c)2mths

d)12mths

8.One of the following is not true about what is given in Preapproved Loan arrangement letter. a) If the time gap between PLAL and submission of Home Loan application by the customer is more than one month, fresh CIBIL Credit report will be verified by the RACPC. b) Loan amount calculated on the basis of prevailing interest rates will be valid for a period of 1 month.

77

STATE BANK LEARNING CENTER, PANCHKULA c) Home Loan will have to be availed by the borrower from the same RACPC which has issued the PLAL. d) PLAL will be issued under the signatures of the processing officer. 9.The condition under which age under YUVA Home loan for availing the loan can be extended upto 40 yrs is a) if minimum contribution of each borrower in case of joint borrowing by husband and wife to the combined NMI is 25%. b) if minimum contribution of each borrower in case of joint borrowing by husband and wife to the combined NMI is 30%. c) if minimum contribution of each borrower in case of joint borrowing by husband and wife to the combined NMI is 20%. d) if minimum contribution of each borrower in case of joint borrowing by husband and wife to the combined NMI is 40%. 10.If a borrower availing loan under SBI Yuva housing loan is not getting benefit under Corporate Salary Package he can get benefit of a festival loan equivalent of ---------months NMI repayable in 36mths a) 2

b)5

c)3

d)6

KEY TO YUVA/PAL HOUSING LOAN QUESTIONNAIRE 1 2 3 4

a b b a

5 6 7 8

c b c d

9 10

a c

78

STATE BANK LEARNING CENTER, PANCHKULA HOME LOAN ASSIGNMENT – 4 SBI Home Plus and earnest money loan 1.

For which purpose loan under SBI-Home Plus scheme can be granted? a) b) c) d)

2.

Home Loan borrowers with a satisfactory repayment record of ____years and who maintain a C./A or SBA/c are eligible for loan Under SBI Home Plus a) c)

3.

expenditure towards major repair, renovation and addition to residential house/flat purchase of furniture and fixture and consumer durables etc. education/medical expenses of family, personal expenses etc. All of above

1 3

Present market value of the house property (-) Margin of 25% on the property value (-)Present outstanding in the Home Loan account Rs. 10 lacs Rs. 20 lacs Least of a & b

b) c) d)

What is the minimum and maximum amount eligible under SBI-Home Plus? a) c)

5.

b) d)

Rs. 15000/-& 2,00,000/Rs. 5000/-& 10,00,000/-

50 60

b) d)

40 no such condition

Under SBI Home Plus, in case of borrowers with NMI of Rs. 10 lacs and above, the ratio of EMI/NMI can be relaxed upto____% a) c)

7.

Rs. 25000/-& 10,00,000/Rs. 25000/-& 5,00,000/-

Under SBI Home Plus, EMI/NMI should not exceed_________%. a) c)

6.

2 4

The eligible loan amount under SBI-Home Plus is: a)

4.

b) d)

40 50

b) d)

60 70

Where equitable mortgage is not extended to cover SBI Home plus, repayment of loan granted under SBI Home Plus is_____ a) 20 years b) 15 years c) 10 years d) Lower of 10 years or residual maturity of existing loan 79


The moratorium within the overall repayment period of loan granted under SBI Home Plus can be permitted upto _____months subject to servicing of interest. a) c)

9.

3 6

b) d)

2 12

At any point of time no of loans granted under SBI Home Plus will not exceed ---subject to an overall ceiling of Rs. 10,00,000/- . a) c)

1 3

b) d)

2 4

10.

Margin in case of loan for earnest money is waived subject to__________ a) Allotment letters / refund orders being routed through SBI b) Lump sum amount equal to 6 month’s interest to be taken upfront c) both a and b d) Security equivalent to loan amount being provided

11.

Minimum monthly income to avail loan under earnest money deposit scheme should be -----a) Rs5000/b) Rs10000/c) Rs6000/d) No minimum amount

12.. Maximum loan amount that can be given under loan for earnest money is ---------a) Rs5.00lac b)Rs10.00lac c)Rs20.00lac d)Rs8.00lac 13.The Security under Loan for Earnest Money loan is waived subject to -------a) Allotment letters / refund orders are routed through SBI. b) Lump sum amount equal to 6 month’s interest is taken upfront. c) 2 PDCs one for the principal amount of EMD and another towards interest for the next 6 months should be taken to meet the eventuality of refund getting . delayed d) all of the above Key to Home Loans Assignment – 4 Q. Ans. Q. Ans.

1 d 11 d

2 a 12 b

3 d 13 d

4 a

5 c

6 d

7 d

8 d

9 b

10 c

80

STATE BANK LEARNING CENTER, PANCHKULA HOME LOANS ASSIGNMENT –5 1.

Loan under SBI Reality is granted for: a) b) c) d)

2.

What is the maximum loan amount under SBI Reality? a) c)

3.

Rs.10 cr Rs.20 cr

Loans above Rs------require region/branch under SBI realty. a) c)

4.

purchase of house construction of house purchase of shop purchase of plot of land for construction of a house

Rs. 10 lacs Rs. 20 lacs

b) d) prior

Rs. 50 cr Rs. 1cr

administrative b) d)

clearance

from

AGM

Rs.50 lacs Rs. 25 lacs

For determining maximum permissible loan under SBI Reality a customer having Annual Income upto Rs. 2 lacs, the EMI/NMI ratio should not exceed__________% a) c)

40 55

b) d)

30 60

5.

For determining maximum permissible loan under SBI Reality a customer having Annual Income above Rs. 2 lacs and upto Rs. 5 lacs, the EMI/NMI ratio should not exceed__________% a) 40 b) 50 c) 55 d) 60

6.

For determining maximum permissible loan under SBI Reality a customer having Annual Income above Rs. 5 lacs to Rs. 10 lacs the EMI/NMI ratio should not exceed__________% a) c)

7.

40 55

b) d)

45 60

For determining maximum permissible loan under SBI Reality a customer having Annual Income above Rs. 10 lacs the EMI/NMI ratio should not exceed__________% a) 40 b) 45 c) 55 d) 50

81


8.

Maximum time period stipulated for construction of house under SBI realty scheme is______, from the date of availment of loan. a) c)

9.

2, 3, 3, 2,

higher higher lower lower

12 years 20 years

b) d)

15 years 25 years

Loan under SBI realty .can be granted as a) c)

12.

3 years 4 years

The maximum repayment period under SBI Realty Scheme is _____________from the month following the month of disbursement of the loan. a) c)

11.

b) d)

For loans above Rs50.00lacs property valuation should be done by -----empanalled valuers and ------of the assessments should be considered for loan amount. a) b) c) d)

10.

2 years 5 years

term loan either a) or b)

b) d)

overdraft neither

For loans above Rs 50.00lacs -----title reports ahould be taken a) 4 b) 1 c) 3 d) 2

13.

The maximum limit under SBI Maxgain housing loan is : a) c)

14.

Rs. 100.00 lacs Rs. 50.00 lacs

b) d)

Rs. 30.00 lacs No upper limit

Which type of credit facility can be granted under SBI Maxgain? a) Cash Credit c) Clean OD

b) d)

Overdraft Term Loan

82


15.

Drawing power under SBI Maxgain is reduced on a -------basis a)daily b)quarterly c) yearly d)monthly

16.

For being eligible under SBI Maxgain Housing loan scheme, the minimum loan amount should be ___________. a) c)

17.

Rs. 10,000/Rs. 2000/-

Rs. 5,00,000/Rs. 10,00,000/-

b) d)

Rs. 5000/Rs. 1000/-

The criteria of minimum balance in SB/Current account for being eligible for SBI Maxgain can be relaxed, if the customer is having______acccount with us. a) b) c) d)

19.

b) d)

For being eligible under SBI Maxgain, existing/prospective customer should have minimum balance of Rs._______ in their SB/Current Account a) c)

18.

Rs. 2,00,000/Rs. 3,00,000/-

Cash Credit account Overdraft account Term Loan account Salary account

Cheque book/ ATM cum Debit Card and Internet Banking facility shall be provided to the SBI Maxgain housing loan borrower ___________and completion of required formalities a) c)

At the time of opening the A/C b) After full disbursement of loan d)

On completion of the house 6 months after the sanction of loan

Key to Advances Home Loans Assignment – 5 Q. Ans. Q. Ans.

1 d 12 d

2 a 13 a

3 b 14 b

4 b 15 d

5 a 16 b

6 b 17 b

7 d 18 d

8 a 19 c

9 d

10 b

11 c

83


HOME LOANS ASSIGNMENT - 6 1 To be eligible for a loan under ‘SBI-Tribal Plus’ Home Loans, the age of the applicant should be over ---- and not more than ------a) c)

21- 55 years 18- 65 years

b) 21- 60 years d) 21-65 years

2 The margin required under ‘SBI-Tribal Plus’ Home Loans construction/purchase of a new/existing house/flat, is:__________

Scheme,

for

3 The margin required under ‘SBI-Tribal Plus’ Home Loans Scheme, repairs/renovation of (or additions to) an existing house/flat is:__________

for

a) c)

a) c) 4.

b) d)

10 % 20%

15 % 25%

10 15

b) d)

12 20

For borrower other than salaried class, the total repayment period available under ‘SBI-Tribal Plus’ Home Loans Scheme is subject to liquidation of loan before the borrower attains _______ years of age. a) c)

6.

10% 20%

b) d)

For salaried borrowers, the total repayment period under ‘SBI-Tribal Plus’ Home Loans Scheme, should not exceed ______ years or the remaining period of their service whichever is less. a) c)

5.

5% 15%

60 70

b) d)

65 72

Under ‘SBI-Tribal Plus’ Scheme, permanent employees of Central or State Government / PSUs / reputed Private Sector undertakings / professionals, selfemployed, businessmen and agriculturists etc. with a minimum of ______ years service / experience (in their respective fields) fall under the eligibility criteria. a) c)

5 3

b) d)

4 2

84


The amount of loan available under ‘SBI-Tribal Plus’ Scheme, is : 36 times NMI for employees / 2 times average NAI for the last 3 years for others, subject to a maximum amount of Rs. _______ lacs. a) c)

8.

10 20

25 40

b) d)

30 50

Under ‘SBI-Tribal Plus’ Scheme, for professionals, self-employed, businessmen or agriculturists borrowers, the aggregate value of liquid securities (Bank’s TDRs, LIC/SBI Life/other insurers endowment policies, NSCs, KVPs, gold ornaments etc.) should not be less than ______% of the loan amount a) c)

10.

b) d)

Under ‘SBI-Tribal Plus’ Scheme, for salaried borrowers, the aggregate value of liquid securities (Bank’s TDRs, LIC/SBI Life/other insurers endowment policies, NSCs, KVPs, gold ornaments etc.) should not be less than ______% of the loan amount a) c)

9.

5 15

30 50

b) d)

40 60

As Mortgage of land is not available under Tribal Plus, what will be taken as security? 3rd party guarantee of another employee(s) employed with Govt./PSU/reputed Private Sector Undertaking b) Group guarantee of 3- 4 employees who are working in the same organization and whose salaries are being routed through the bank on the basis of irrevocable letter of authority. c) in case of loan to professional, self-employed, guarantor(s) networth should be equal to or more than the loan amount. d) any of the above a)

11.

‘Gram Niwas’ Scheme is applicable in all rural and semi-urban centres. ‘Rural Area’ for the purpose of the Scheme is the area comprised in any village including the area comprised in any town, the population of which does not exceed ________ as per 2001 census. a) c)

10,000 20,000

b) d)

12,000 50,000

85


Which type of facility can be granted under ‘Gram Niwas Scheme? a) b) c) d)

Term Loan Overdraft Clean Overdraft a or b

13.

The maximum loan amount available under ‘Gram Niwas’ Scheme, for construction is Rs.___________ a) 1,00,000/b) 2,00,000/c) 3,00,000/d) 5,00,000/-

14.

The maximum loan amount available under ‘Gram Niwas’ Housing Loan Scheme, for repairs/renovation of house, is:___________ a) c)

15.

b) d)

Rs. 75,000/Rs. 2,00,000/-


b) d)



b) d)


Age criteria under ‘Gram Niwas’ Scheme is: a) c)

19.

Rs. 50,000/Rs. 1,00,000/-

The margin required under ‘Gram Niwas’ Scheme for loan above Rs. 50,000/and upto Rs. 5.00 lac is___________ a) c)

18.

Rs. 75,000/Rs. 2,00,000/-

The margin required under ‘Gram Niwas’ Scheme for loan upto Rs. 50,000/is___________ a) c)

17.

b) d)

The maximum loan amount available under ‘Gram Niwas’ Housing Loan Scheme, for purchase of land is:___________ a) c)

16.

Rs. 50,000/Rs. 1,00,000/-

18 to 60 years 21 to 65 years

b) d)


Under Gram Niwas maximum EMI/NMI ratio where average annual income is above Rs5.00lacs is ---a) c)

60% 55%

b) d)

75% 50% 86


20.

The maximum repayment period available under ‘Gram Niwas’ Scheme, as well as under ‘Sahyog Niwas’ Scheme, is: ____________ . a) c)

7 years 15 years

b) d)

10 years 20 years

21.

Sahyog Niwas Scheme relates to---------------a) Financing SHG for on lending to members for housing in rural areas. b) People residing in same village cooperate each other. c) Scheme for financing rural people for construction of houses. d) None of the above

22.

Sahyog Niwas Scheme is operational in---------------a) In rural and semi urban areas where SHGs are operating. b) In urban areas . c) Both a & b. d) None of the above

23.

For being eligible under “Sahayog Niwas’ Scheme, SHGs should be in existence, with good track record of payment, for ____________. a) c)

24.

1 year 3years

4 times the saving of the corpus of SHG 5 times the saving of the corpus of SHG 8 times the saving of the corpus of SHG 10 times the saving of the corpus of SHG

Under “Sahyog Niwas’ Scheme, after the disbursement of loan, SHG will on lend to its members for housing subject to a maximum of Rs._________ per member for purchase/construction of house OR Rs._________ for repairs / renovations / purchase of plot. a) c)

26.

b) d)

The maximum amount of housing loan under “Sahyog Niwas” Scheme, is ______________( including the loan outstanding in the limits already sanctioned to SHGs). a) b) c) d)

25.

6 months. 2 years

50,000/-, 25,000/1,00,000/-, 50,000/-

b) d)

75,000/-, 40,000/2,00,000/-, 1,00,000/-

Under “Sahyog Niwas’ Scheme, SHGs should not charge to its members more than _______% of interest rate charged by the Bank. a) 2 b) 3 c) 4 d) 5 87


Key to Assignment HOME LOANS ASSIGNMENT –6

Q. Ans. Q. Ans. Q Ans.

1 b 10 d 19 a

2 c 11 d 20 c

3 c 12 d 21 a

4 c 13 d 22 a

5 b 14 d 23 c

6 a 15 c 24 d

7 b 16 b 25 a

8 b 17 c 26 b

9 c 18 d

88


CAR LOAN 1.

Minimum income criteria to be eligible under SBI Car Loan Scheme is? a) b) c) d)

2.

Net annual income should be at least Rs. 75,000/ Net annual income should be at least Rs. 50,000/Net annual income should be at least Rs. 100,000/Net annual income should be at least Rs. 60,000/

The Minimum and Maximum age criteria for sanction of loan under SBI Car Loan scheme is: a) 18-60 years c) 21-65 years

3.

b) d)

30 18

Under SBI Car Loan Scheme, the maximum loan amount that can be granted to professionals, self employed, agriculturists etc., would be restricted to ______ times the net annual income. a) 1.5 c) 2.5

5.

21-45 years 21-60 years

Under SBI Car Loan Scheme, the maximum loan amount that can be granted to salaried persons would be restricted to ________ times the net monthly income. a) 36 c) 24

4.

b) d)

b) d)

2 3

What is the maximum loan amount under SBI Car Loan Scheme for purchase of new Vehicle? a) c)


b) d)

Rs. 10 lacs No upper ceiling

6.

Under SBI Car Loan Scheme, EMI should not exceed ______ of Net Monthly Income. a) 50% b) 60% c) 57.50% d) 40%

7.

Under SBI Car Loan Scheme EMI/NMI may be relaxed upto ___by sanctioning authority officer not below the rank of AGM in case of customer with NMI of Rs. 10 lac and above a) c)

50% 57.50%

b) d)

60% 70% 89


The margin required under SBI Car Loan Scheme is _______% of ‘on road’ price. a) c)

9.

10, 15,

12.

13.

10,000/20,000/-

b) d)

5, 25,

25,000/25,000/-

Guarantor Co-borrower

b) d)

borrower there is no such requirement

Under SBI Car Loan Scheme, loans up to Rs. __________ may be granted on fixed interest rate basis. a) c)

3 lac 10 lac

5 lac loan on fixed rate of interest basis is not granted. A Car loan granted to an individual for purchase of new & old should be repaid within --------years a) b) c) d)

8 7 6 5

b) d)

The repayment cycle of SBI Car Loan Scheme for loans disbursed on or before 15th of the month and on or after 16th of the month the repayment date should be fixed as _____&______of the following month respectively. a) c)

14.

15 20

Under SBI Car Loan Scheme, when the income of spouse or son/daughter is clubbed with the borrower he is made ______ a) c)

11.

b) d)

Cost of accessories not to exceed ___% of cost of vehicle or Rs.________, whichever is less. a) c)

10.

5 10

5th, 20th 10th, 20th

b) d)

10th, 30th no such stipulation

Penal interest @________ is charged when the Car Loan account is irregular beyond 30 days for any reason. a) b) c) d)

@ 2 % p.a. on the entire loan outstanding for a default period. @1% per month or 12% p.a on the irregular portion of loan @ 2 % p.a. on the irregular portion of loan. No penal interest is charged. 90


15.

Prepayment penalty is levied @__________under SBI Scheme. a) b) c) d)

advantage Car Loan

1 % of the amount prepaid. 1.5% of the amount prepaid. nil 2% of the amount prepaid if the loan is taken over by other bank, or if the amount is repaid before expiry of half of the agreed tenure of loan, or if there is partial repayment during the 1st year.

16.

Maximum number of co borrowers in case of car loan can be----a) 3 b) 2 c) 5 d) 4

17.

Car loan should be repaid before the age of ---a) c)

70 75

b) d)

65 60.

18.

Vehicle to be finanaced under under Car loan Scheme for used vehicle should not be more than ------years old? a)2 years b) 4 years c) 5 years d) 7 years

19.

What is the maximum loan available under Car loan Scheme for used vehicle? a) Rs.10 lacs b) Rs.20 lacs c) Rs.15 lacs d) No limit

20.

The garage from which the valuation certificate is to be obtained should be authorized by --------- in big cities a) GM of network b) Liasion officer at LHO/ZO c) AGM RACPC d) DGM CPPC

Key to Assignment – CAR LOAN Q. Ans. Q Ans.

1 c 12 b

2 c 13 c

3 b 14 a

4 c 15 c

5 d 16 b

6 a 17 a

7 d 18 c

8 b 19 c

9 b 20 b

10 c

11 d

91


CAR LOAN-II 1.

Under Car Loan Scheme, reimbursement of the cost of unencumbered vehicle up to ______ years of age can be given under the takeover norms and other terms of financing old vehicles. a) c)

2.

5 3

b) d)

4 2

What is the quantum of service charge payable to the Car dealer for business of up to 10 car loans (or loan amount up to Rs. 30 lacs) sourced by them during a month? a). 75% of loan amount c) 1. 25% of loan amount

b) d)

1.00% of loan amount 1. 50% of loan amount

3.

One of the following is not true in respect of takeover of car loans a)the vehicle is not more than 2 years old (b) it is a single ownership vehicle and no insurance claim has been availed (c) Car should be either of Maruti, Tata or Honda (d) the account of the borrower with the other bank is a Standard Asset

4.

What is the quantum of service charge payable to the Car dealer for business of more than 25 car loans (or loan amount above Rs. 60 lac) sourced by them during a month? a) c)


b) d)


5. In case of used vehicle maximum repayment period for self employed and professionals is -------years a)6 b)5 c)7 d)4 6.

What will be the repayment period of a loan granted for purchase of a used vehicle? a) b) c) d)

3 years 5 years 7 years The loan will be repaid within 7 years from the date of original purchase.

92


Which account is debited for payment of service charges payable to a Car loan dealer? a) Charges Account Miscellaneous c) Commission Account d)

8.

b) Interest Account Branch Clg. Gen A/C-RBO

What is minimum amount for availing Car Loan as Overdraft facility? a)Rs. 3 lacs c)Rs. 7 lacs

9.

b) d)


If Car Loan is granted as Overdraft facility, the rate of interest charged will be ____bps higher than normal car loans. a)25 b) 75 c)100 d) 50

10. To be eligible under NRI- Car Loan Scheme, the borrower & Guarantor should be between ____&____year of age. a)18, 60 c)21, 60

b) d)

21, 65 21, 70

11. What are eligibility criteria for Resident Indian borrower under NRI-Car Loan Scheme? a) An individual/agriculturist/professional or self employed/ student etc or doing business with economic activity b) A parent of the NRI/PIO receiving pension or inward remittance at regular intervals. c) Physically fit with a driving license or in a position to engage a driver. d) The borrower is to be related to NRI/PIO who extends his guarantee to loan. e) All of above 12.

What are eligibility criteria for Guarantor under NRI-Car Loan Scheme?

a) Having valid Indian passport & steady source of Income b) Employed abroad for at least 2 yrs & holding a valid job contract/work permit c) Having NRI account with SBI for at least 12 months with min. average balance of Rs. 50,000/- or New Account with USD 5000/- or equivalent. d) All of the above 13.

Car loan for NRI should be repaid before the guarantor reaches the age ofa)70

b)60

c)72

d)65 93


14.

What should be the minimum NMI of the Guarantor under NRI Car Loan Scheme? a) c)

15.

US$ 500 US$ 1200

7 years 5 years

b) d)

9 years 3 years

What is the mode of repayment of EMI under NRI- Car Loan Scheme a) b) c) d)

18.

18 time NMI / 1.5 time NAI of Guarantor 15 time NMI / 2.5 time NAI of Guarantor 10 time NMI / 1.5 time NAI of Guarantor No ceiling

What is the maximum repayment tenure under NRI- Car Loan Scheme a) c)

17.

US$ 1000 No restriction

What is the maximum loan amount, which can be granted under NRI-Car Loan Scheme for new cars? a) b) c) d)

16.

b) d)

Remittance from abroad through normal banking channels Out of funds in NRE/FCNR/NRO accounts Out of local fund by close relatives of NRI Guarantor Any of above

Under NRI-Car Loan Scheme, KYC norms of ________will be done a) c)

Borrower Both a & b

b) d)

Guarantor No such requirement

19.

EMI/NMI ratio under this loan should not exceed------% a) 55 b) 65 c) 70 d) 50

20.

NRI should be related to the Resident Indian who is the borrower to stand as _________for the loan. a) c)

Guarantee Co-borrower

b) d)

Surety None of the above

94

STATE BANK LEARNING CENTER, PANCHKULA Key to Assignment CAR LOAN -II

Q. Ans. Q. Ans.

1 d 11 e

2 b 12 d

3 c 13 d

4 d 14 b

5 b 15 d

6 d 16 a

7 b 17 d

8 a 18 c

9 d 19 d

10 b 20 a

95

STATE BANK LEARNING CENTER, PANCHKULA SBI ADVANTAGE CAR LOAN 1. The minimum income criteria to be eligible under SBI Advantage Car Loan Scheme is: a) b) c) d)

Net annual income should be at least Rs. 3,00,000/ Net annual income should be at least Rs. 1,50,000/Net annual income should be at least Rs. 2,50,000/Net annual income should be at least Rs. 2,00,000/

2. The Minimum and Maximum age criteria for borrowers to be eligible under SBI Advantage Car Loan scheme is: a) 18-60 years c) 21-65 years

b) d)


3. Under SBI Advantage Car Loan Scheme, the maximum loan amount that can be granted to salaried persons would be restricted to ________ times the net monthly income. a) 36 c) 24

b) d)

48 30

4. Under SBI Advantage Car Loan Scheme, the maximum loan amount that can be granted to those other than salaried is be restricted to ______ times the net profit/Gross taxable income after netting of depreciation and repayment of all loans a) 2.5 c) 4

b) d)

2 3

5. Under SBI Advantage Car Loan Scheme, EMI should not exceed ______ of Net Monthly Income for those with NAI of Rs 5.00lac a) 50% c) 57.50%

b) d)

60% 40%

6. Under SBI Advantage Car Loan Scheme, EMI should not exceed ______ of Net Monthly Income. for those with NAI above Rs5.00lac and upto Rs10.00lac. a) 50% b) 60% c) 57.50% d) 40% 7. Under SBI Advantage Car Loan Scheme, EMI should not exceed ______ of Net Monthly Income. for those with NAI above Rs10.00lac . a) 50% b) 60% c) 57.50% d) 70% 96


8.

The margin required for purchase of car under SBI Advantage Car Loan Scheme is _______% of ‘on road’ price. a) 5 b) 15 c) 10 d) 20

9.

Accessories and cost of accessories not to exceed ___% of cost of vehicle or Rs.________, whichever is less. a) c)

10.

3 lac 10 lac

borrower there is no such requirement

b) d)

7 6 8 5

5th, 20th 10th, 20th

b) d)

10th, 30th no such stipulation

Margin on loan under SBI Advantage is --------% a) 15 c) 18 .

15.

b) d)

The repayment cycle of SBI Advantage Car Loan Scheme for loans disbursed on or before 15th of the month and on or after 16th of the month the repayment date should be fixed as _____&______of the following month respectively. a) c)

14.

guarantor co-borrower

5 lac loan on fixed rate of interest basis is not granted. A SBI Advantage Car loan should be repaid within ------years a) b) c) d)

13.

5, 25,000/- respectively 25, 25,000/- respectively

Under SBI Advantage Car Loan Scheme, loans up to Rs. __________ may be granted on fixed interest rate basis. a) c)

12.

b) d)

Under SBI Advantage Car Loan Scheme, when the income of spouse is clubbed with the borrower he/she is made ______ a) c)

11.

10, 10,000/- respectively 15, 20,000/- respectively

b) d)

20 25

Prepayment penalty is levied @__________under SBI Advantage Car Loan Scheme. 97


a. b. c. d.

16.

1 % of the amount prepaid. nil 2 % of the amount prepaid, irrespective of the time of prepayment. 2% of the amount prepaid if the loan is taken over by other bank, or if the amount is repaid before expiry of half of the agreed tenure of loan, or if there is partial repayment during the 1st year.

What is the minimum loan available under SBI Advantage Car loan Scheme? a) c)


b) d)

Rs.10 lacs Rs.1 lac

Key to Assignment SBI ADVANTAGE CAR LOAN Q. Ans. Q Ans.

1 c 14 a

2 c 15 b

3 b 16 c

4 c

5 a

6 b

7 d

8 b

9 b

10 c

11 d

12 a

13 c

98


EDUCATION LOAN 1. Maximum loan available to a student for studies in India under “SBI Student Loan” is:_______ a) c)

Rs. 7.5 lac Rs. 15 lac

b) d)


2. Maximum loan available to a student for studies abroad under “SBI Student Loan” is: _______ a) c)


b) d)


3. Minimum margin required for loans up to Rs. 4 lac under “SBI Student Loan” is: ___________ a) 15 % b) 10 % c) 5 % d) NIL 4. Minimum margin required for loans above Rs. 4 lac for studies in India under “SBI Student Loan” is : ___________ a) c)

15 % 5%

b) d)

10 % NIL

5. Minimum margin required for loans above Rs. 4 lac for studies abroad under “SBI Student Loan” is : ___________ a) c)

15 % 5%

b) d)

10 % NIL

6. Under “SBI Student Loan”, repayment of loan will commence ____________________________________ , whichever is earlier. a) b) c) d)

from

6 months after completion of course or 6 months after securing a job 6 months after completion of course or 3 months after securing a job One year after completion of course or 3 months after securing a job Course period + 1 year, or 6 months after getting job

7. Under “SBI Student Loan” the repayment period (after commencement of repayment) allowable for loans granted for studies in India is: ___________. a) 5 years only c) 5 to 10 years

b) d)


99

STATE BANK LEARNING CENTER, PANCHKULA 8. Under “SBI Student Loan” the repayment period (after commencement of repayment) allowable for loans granted for studies abroad is: ___________. a) 7 years only b) 5 to 15years c) 5 to 10 years d) 5 to 7 years 9. Under “SBI Student Loan”, for loan amount up to Rs. 4 lac granted for studies in India as well as for studies abroad, the security to be obtained is a) b) c) d)

No security. Suitable Third Party Guarantee Tangible Collateral Security of suitable value or Third Party Guarantee with assignment of future income of the student for payment of installments Tangible Collateral Security for full value of loan

10. Under “SBI Student Loan”, for loan amount above Rs. 4 lacs and upto Rs. 7.5 lacs granted for studies in India as well as for studies abroad, the security to be obtained is: a) b) c) d)

No security. Collateral in the form of a suitable Third Party Guarantee Tangible Collateral Security of suitable value or Third Party Guarantee with assignment of future income of the student for payment of installments Tangible Collateral Security for full value of loan

11. Under “SBI Student Loan”, for loan amount above Rs. 7.5 lacs granted for studies in India, the security to be obtained is: a) b) c) d)

No security. Third Party Guarantee Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of instalments Tangible Collateral security for full value of loan

12. As per Reserve Bank of India guidelines, education loans up to the ceilings of _____________are reckoned under priority sector advances. a) b) c) d)

Rs. 10 lacs for studies in India Rs. 20 lacs for studies abroad, Rs. 10 lacs for studies in India & abroad Both (a) & (b)

100


13.

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 _______ years. a) b) c) d)

14.

15.

Under “SBI Student Loan”, penal interest @ ________will be charged for overdue amount and overdue period if amount of loan is above Rs. 4 lacs. a) 1 % b) 1.5 % c) 2 % d) Nil Under “SBI Student Loan”, concession of ______ % in interest rate is allowed if full interest is serviced during the moratorium period. a) c)

16.

1 year 2 year 3 year No extension is permitted

0.5 1.5

Under “SBI Student Loan”, processing fee is charged @ _____ of the loan amount. a) b) c) d)

17.

Nil 0.25 % For loan upto Rs. 4 lac – Nil, for loan above Rs, 4 lac – 0.55 % For loan upto Rs. 4 lac – Nil, for loan above Rs, 4 lac – 1.10 %

Under “SBI Student Loan”, how many wards of a parent/guardian can be covered a) c)

18.

b) 1 d) No concession is allowed

1 Family to be taken as unit

b) d)

2 No such limit

What is/are the conditions to sanction second loan (Top up Loan) under “SBI Student Loan”? a) Second loan within the overall limit b) Provided projected income of the student, after placement, is sufficient to cover full loan repayment c) Second loan being allowed with the security requirements as applicable to the aggregate limit d) All of the above

101

STATE BANK LEARNING CENTER, PANCHKULA 19. How will you react, if student approach for additional loan due to enhancement in fees? a) b) c) d) 20.

The maximum loan amount available under “SBI Scholar Loan” scheme is______ a) c)

21.

d)

Rs. 10 lac Rs.20 lac

NIL 10 %

b) d)

5% 15 %

No security. Suitable Third Party Guarantee Tangible Collateral Security of suitable value or Third Party Guarantee with assignment of future income of the student for payment of installments Tangible Collateral Security for full value of loan

Under “SBI Scholar Loan”, the repayment period (after commencement of repayment i.e after the moratorium) allowable is: ___________. a) c)

24.

b) d)

Under “SBI Scholar Loan”, the security to be obtained is: a) b) c)

23.

Rs. 7.5 lac Rs.15 lac

The minimum margin required for a loan above Rs. 4 lac under “SBI Scholar Loan” scheme is:___________ a) c)

22.

The request cannot be entertained The request will be permitted on case-to-case basis The request will be permitted on case-to case basis in the context of various ceilings for the security related issues. None of the above

5 years 5 – 10 years

b) d)

5 – 7 years 7 years

Under “SBI Scholar Loan”, extension of time for completion of course (for ascertaining the moratorium period / commencement of repayment period) may be permitted for max. period of _______ years if student is not able to complete course within scheduled time, a) c)

1 years 3

b) d)

2 years No extension is permitted

102


SBI Scholar Loan is sanctioned by ______branches a) b) c) d)

26.

An interest rate concession of __________is given to girl students a) c)

27.

NIL 0.10 %

b) d)

0.50 % 1.00 %

An interest rate concession is given to girl students availing education loans under a) c)

28.

Rural Urban Select list of branches Bank can authorize branches at other centers in addition to select list of branches

SBI Student Loans SBI Student Loan to Staff / Ward of Staff

b) SBI Scholar Loan d) All of the above.

Disposal of loan application (time norm) and finance ministry guidelines on disposal of loan applications are as under: a) 7 days, but not exceeding the time norms stipulated for disposing of loan applications under priority sector lending. b) No application for educational loan received should be rejected without the concurrence of the next higher authority. c) Both of the above

29.

Loan for Pilot Training Courses are covered in: a) b) c) d)

30.

d) None of the above.

SBI Career Loan Scheme SBI Student Loan Scheme SBI Scholar Loan Scheme Both (a) & (b)

In SBI Student Loan Scheme the moratorium has been extended from the current 12 months to 24 months in genuine cases. In SBI Scholar Loan Scheme the moratorium has been extended from the current 6 months to __________ months. a) b) c) d)

12 months 18 months 24 months Not extended 103


31. Under Interest Subsidy scheme on Education Loan for economically weaker section, following is applicable: a) Applicable to those students with annual gross parental/family income upto Rs.4.5 lacs per year (from all sources). b) The interest subsidy available only once either for the first undergraduate degree course or the post graduate degree/diploma in India. c) Nodal Bank for the Ministry of Human Resources Development for implementation of the scheme is Canara Bank . d) Maximum loan amount is Rs. 10 lacs. e) All of the above.

Key to Assignment EDUCATION LOAN


1 b 12 d 23 b

2 c 13 b 24 b

3 d 14 c 25 d

4 c 15 b 26 b

5 a 16 a 27 d

6 d 17 d 28 c

7 b 18 d 29 b

8 d 19 c 30 d

9 a 20 c 31 e

10 b 21 b

11 c 22 a

104

STATE BANK LEARNING CENTER, PANCHKULA ‘P’ SEGMENT ADVANCES ASSIGNMENT PENSION LOANS 1.

SBI loan to the pensioners is available to all pensioners drawing pension from our branches aged __________ years or less. a) c)

2.

65 72

62 70

b) d)

65 72

Under “SBI loan to pensioners”, for pensioners of age up to 70 years, the repayment is restricted to:__________ EMIs a) c)

6.

Maximum 9 times the family pension with a ceiling of Rs. 50,000/Maximum 9 times the family pension with a ceiling of Rs. 75,000/Maximum 12 times the family pension with a ceiling of Rs.75,000/Maximum 12 times the family pension with a ceiling of Rs. 100,000/-.

Under “SBI loan to pensioners”, the age of the family pensioner should not exceed ________ years, for eligibility under the scheme. a) c)

5.

Maximum 12 months’ pension with a ceiling of Rs. 50,000/Maximum 12 months’ pension with a ceiling of Rs. 60,000/Maximum 12 months’ pension with a ceiling of Rs. 75,000/Maximum 12 months’ pension with a ceiling of Rs. 100,000/-.

The ceiling for amount of loan for ‘Family Pensioners’ under “SBI loan to pensioners” is:_______ a) b) c) d)

4.

70 No age bar.

The ceiling for amount of loan for pensioners under “SBI loan to pensioners” is: _______ a) b) c) d)

3.

b) d)

36 60

b) d)

48 72

Under “SBI loan to pensioners”, for pensioners of age above 70 years and up to 72 years, the repayment is restricted to:__________ EMIs a) c)

36 60

b) d)

48 72

105


Jai Jawan Pension Loan Scheme has been launched to meet the personal expenses of young Defence Pensioners up to the age of _______years. a) c)

60 65

b) d)

50 55

8. The eligible loan amount under Jai Jawan Pension Loan Scheme is ________ a) b) c) d) 9.

45 times net monthly pension subject to maximum Rs. 1 lac 50 times net monthly pension subject to maximum Rs. 2 lac 48 times net monthly pension subject to maximum Rs. 2 lac None of the above

The maximum repayment period under is________ a) c)

10.

50,000/15,000/-

b) d)

25,000/20,000/-

50%. 60%.

b) d)

40%. 45%.

SBI Loan to Affluent Pensioners Scheme is available to all Govt. / SBI pensioners drawing pension from our branches aged __________ years or less. a) c)

13.

48 months 84 months

Under Jai Jawan Pension Loan Scheme, EMI/NMI ratio should not exceed? a) c)

12

b) d)

No guarantee is required to be taken in case loan granted under Jai Jawan Pension Loan Scheme is below Rs. ________ a) c)

11.

60 months 45 months

Jai Jawan Pension Loan Scheme

65 72

b) d)

70 No age bar.

The ceiling for amount of loan for pensioners under “SBI Loan to Affluent Pensioners Scheme” is: _______ a) b) c) d)

Maximum 12 months’ pension with a ceiling of Rs. 1,50,000/Maximum 12 months’ pension with a ceiling of Rs. 2,00,000/Maximum 12 months’ pension with a ceiling of Rs. 3,00,000/Maximum 12 months’ pension with a ceiling of Rs. 100,000/-.

106


14.

The ceiling for amount of loan for ‘Family Pensioners’ under “SBI Loan to Affluent Pensioners” is:_______ a) b) c) d)

15.

Under “SBI Loan to Affluent Pensioners”, the age of the family pensioner should not exceed ________ years, for eligibility under the scheme. a) c)

16.

b) d)

65 72

36 60

b) d)

48 72

Under “SBI Loan to Affluent Pensioners”, for pensioners of age above 70 years and up to 72 years, the repayment is restricted to:__________ EMIs a) c)

18.

62 70

Under “SBI Loan to Affluent Pensioners”, for pensioners of age up to 70 years, the repayment is restricted to:__________ EMIs a) c)

17.

Maximum 9 months’ family pension with a ceiling of Rs. 1,50,000/Maximum 9 months’ family pension with a ceiling of Rs. 2,00,000/Maximum 12 months’ family pension with a ceiling of Rs. 1,50,000/Maximum 12 months’ family pension with a ceiling of Rs. 100,000/-

36 60

b) d)

24 72

Under “SBI Loan to Affluent Pensioners”, EMI should not be more than _______of the net pension drawn by the family pensioner. a) c)

50%. 25%.

b) d)

40%. 45%.

Key to Assignment PENSION LOANS Q. Ans. Q. Ans

1 C 11 b

2 d 12 c

3 a 13 c

4 b 14 a

5 c 15 b

6 b 16 a

7 b 17 b

8 c 18 c

9 d

10 b

107


‘P’ SEGMENT ADVANCES ASSIGNMENT PERSONAL LOANS 1.

What should be the minimum net monthly income (NMI) of an employee to be eligible for a loan under “Festival Loan Scheme for Public”? a) c)

2.

3,000/5,000/-

4,000/10,000/-

2 times NMI, maximum Rs. 20,000/5 times NMI, maximum Rs. 30,000/8 times NMI, maximum Rs. 40,000/4 times NMI, maximum Rs. 50,000/-

60,000/ 75,000/-

b) d)

70,000/1,00,000/-

The loan under “Festival Loan Scheme for Public” should be repaid within a maximum period of __________ months. a) c)

6.

b) d)

Under “Festival Loan Scheme for Public”, loan upto Rs. ____________(restricted to 4 times NMI) can be granted to employees with check off facility or well established self employed individuals whose dealings with us have been satisfactory in the past. a) c)

5.

Rs. 3,000/Rs. 5,000/-

The maximum amount of loan under “Festival Loan Scheme for Public” is generally restricted to: ________________. a) b) c) d)

4.

b) d)

The minimum amount of loan available under “Festival Loan Scheme for Public” is Rs.___________ a) c)

3.

Rs. 2,500/Rs. 4,000/-

10 months 15 months

b) d)

12 months 18 months

Under “Festival Loan Scheme for Public”, the processing fee will be charged @ __________. a) c)

1.10 % of the loan amount 0.55 % of the loan amount

b) d)

1.00 % of the loan amount Rs. 100/- per application.

108


Under “Personal Loan Against Mortgage of Immoveable Property”, individuals who are less than _________ years of age, are eligible for finance. a) c)

60 70

b) d)

65 72

8.

The minimum amount of loan that can be granted under “Personal Loan Against Mortgage of Immoveable Property”, is: _________ a) Rs. 25,000/b) Rs 50,000/c) Rs 1 lacs d) Rs 200000/-

9.

For being eligible under “Personal Loan Against Mortgage of Immoveable Property”, the minimum Net Monthly Income (NMI) of a salaried person should be ____________ a) Rs 6000/b) Rs 12000/c) Rs 5000/d) Rs 10000/-

10.

For being eligible under “Personal Loan Against Mortgage of Immoveable Property”, the Net Annual Income of Professionals & Self Employed and others who are IT assessees / Agriculturists etc. should be at least : ____________ a) c)

11.

Rs 100,000/-/Rs 1,50,000/-

Rs 1,44,000/Rs 2,00,000/-

The Maximum loan against mortgage of immoveable property (subject to EMI/NMI < 50 %) is restricted to:__________________ . a) b) c) d)

12.

24 NMI/ 2 times NAI subject to a maximum of Rs. 50 lacs. 24 NMI/ 2 times NAI subject to a maximum of Rs. 1 crore. 75 % of the market value of property, with a ceiling of Rs 50 lacs 75 % of the market value of property, with a ceiling of Rs. 1 crore

For repayment of Term Loan under “Personal Loan Against Mortgage of Immoveable Property”, the maximum period is _______ months (or upto the date of retirement, if it falls earlier) wherever ‘Check-Off’ facility is available. a) c)

13.

b) d)

48 72

b) d)

60 120

Wherever ‘Check-Off’ facility is not available, the repayment of Term Loan under “Personal Loan Against Mortgage of Immoveable Property” is restricted to a period of _______ months (or upto the date of retirement, if it falls earlier, for employees). a) c)

36 60

b) d)

48 72 109


14.

15.

Under “Personal Loan Against Mortgage of Immoveable Property”, the processing fee will be charged @ __________. a)

0.50 % of the loan amount

b)

c)

1.00 % of the loan amount.

d)

2.00 % of the loan amount maximum Rs. 50,000/1.10% of the loan amount.

Under “Personal Loan Against Mortgage of Immoveable Property”,margin is as under: a) 50% of the market value of the property b) 40% of the market value of the property c) 20% of the market value of the property d) None of the above.

Key to Assignment PERSONAL LOANS Q. Ans. Q. Ans

1 b 11 d

2 c 12 d

3 d 13 c

4 d 14 b

5 b 15 b

6 a

7 a

8 a

9 b

10 c

110

STATE BANK LEARNING CENTER, PANCHKULA P’ SEGMENT ADVANCES ASSIGNMENT PERSONAL LOANS--II 1)

Who among the following group of borrowers is not eligible for finance under “MediPlus Scheme”? a) b) c) d) e)

Permanent employees of Govt., PSUs and profit making Public Limited Companies, with min. 2 yrs service with check-off, and 5 yrs in other cases. Self employed engineers, doctors, architects, CAs, MBAs with minimum 5 years standing, age 60 years or less. Voluntarily retired pensioners of PSUs / Govt / PSBs / SBI age 60 years or less. Traders, entrepreneurs with 5 years standing, age 60years or less. Agents of Insurance/KVP/Mutual Funds etc. who are income tax assesses with gross annual income of Rs. 3.00 lacs and above.

2)

In order to be eligible for finance under “Medi-Plus Scheme”, the minimum Net Monthly Income (NMI) of employees/pensioners should be: ______________ a) Rs. 5,000/b) Rs. 10,000/c) Rs. 12,000/d) Rs. 15,000/-

3)

In order to be eligible for finance under “Medi-Plus Scheme”, the minimum Net Annual Income (NAI) of a self employed person should be: ______________ a) c)

4)

Rs. 1,50,000/Rs. 2,50,000/-

b) d)

Exceeding Rs. 2,00,000/Exceeding Rs. 4,00,000/-

The minimum loan amount under Medi Plus Scheme is: ______________ a) Rs. 50,000/c) Rs. 20,000/-

6)

Rs. 2,00,000/Rs. 3,00,000/-

In order to be eligible for finance under “Medi-Plus Scheme”, the minimum Gross Annual Income of an agent of Insurance/KVP/Mutual Funds should be: _______ a) Exceeding Rs. 1,50,000/c) Exceeding Rs. 3,00,000/-

5)

b) d)

b) d)

Rs. 25,000/Rs. 10,000/-

The maximum loan amount under Medi Plus Scheme for employees /self employed persons, is 12 NMI / 1 year NAI, maximum Rs. _____________ a) c)

1,00,000/2,00,000/-

b) d)

1,50,000/3,00,000/-

111

STATE BANK LEARNING CENTER, PANCHKULA 7)

The maximum loan amount under Medi Plus Scheme available for VRS Pensioners and Agents of Insurance/KVP/Mutual Funds is:____________ a) c)

8)

b) d)

15 25

60 36

b) d)

48 24

50 75

b) d)

60 100

Under Medi-plus scheme, where check-off facility is not available, the tangible security should be at least ______ % of the loan amount. a) c)

12)

10 20

Under Medi-plus scheme, where check-off facility is available, the tangible security should be at least ______ % of the loan amount. a) c)

11)

Rs.1,20,000/Rs.2,00,000/-

Under Medi Plus Scheme, the repayment should be done in maximum ___ EMIs. a) c)

10)

b) d)

The margin required under Medi Plus Scheme is ______% of total cost of treatment as per hospital bills. a) c)

9)

Rs. 1,00,000/Rs. 1,50,000/-

60 100

b) d)

75 110

Under Medi-plus scheme, the processing fee will be charged @ ______ % of the loan amount. a) c)

1.00 0.55

b) d)

1.10 0.50

Key to Assignment PERSONAL LOANS-II

Q. Ans

1 d

2 b

3 d

4 c

5 a

6 d

7 a

8 c

9 a

10 a

11 d

12 b

112


‘P’ SEGMENT ADVANCES ASSIGNMENT XPRESS CREDIT 1.

To be eligible under Xpress Credit an employee should have minimum _____ year’s length of service. a) c)

2.

36 months 60 months

20,000/ 25,000/-

b) d)

48 months 72 months

b) d)

24,000/50,000/-

The maximum amount of loan available in all centres under “XPRESS CREDIT” is: _____ a) b) c) d)

5.

2 There is no such stipulation

The minimum amount of loan available under “XPRESS CREDIT” is Rs.______ a) c)

4.

b) d)

The maximum repayment period available under “Xpress Credit” is : ____________ a) c)

3.

1 3

12 months NMI with a ceiling of Rs. 5,00,000/12 months NMI NAI, with a ceiling of Rs. 7,50,000/24months NMI, with a ceiling of Rs. 10,00,000/24 months NMI, with a ceiling of Rs. 15,00,000/-

Xpress Credit is sanctioned to _______ a) b) c) d)

Professional & self employed Businessman Employees All of the above

6.

Which of the following has not been included under target groups under our Xpress Credit Scheme?

a) b) c) d)

Employees of government, semi-government, profit making PSUs Employees of educational institutions of national repute Employees of profit making companies with a net worth of Rs. 50 crore or above. Employees of companies with CRA rating of SB 1 to SB5 113


7.

Under “Xpress Credit Scheme”, the minimum Net Monthly Income (NMI) required for eligibility under the scheme should be:_____________ a) c)

8.

Rs. 2,500/Rs. 4,000/-

0.30 0.55

Under “Xpress Credit under___________ a) c)

11.

Rs. 3,000/Rs. 6,000/-

b) d)

Rs. 3,000/Rs. 1,000/-

Under “Xpress Credit Scheme”, the processing fee will be charged @ ______ % of loan amount. a) c)

10.

b) d)

Under “Xpress Credit Scheme”, the minimum Net Monthly Income (NMI) required for eligibility under the scheme may be reduced to Rs.______only if salary account of entire enterprise are with us. a) c)

9.

Rs. 2,500/Rs. 5,000/-

Upto/equal to50% Upto/equal to60%

b) d) Scheme”, b) d)

0.50 1.00 the

EMI/NMI

ratio

should

be

as

Upto/equal to55% None of these

Which of following can be accepted in lieu of Check-off under “Xpress Credit Scheme”: a) The employer pays the borrower’s salary into his SB/CA/c with our Bank. b) The borrower gives an irrevocable Standing Instruction (SI) for recovery of the loan installments from his aforesaid account; with the SI being synchronized with the date of credit of salary c) The employer undertakes to inform the Bank when there is a severance due to borrower’s transfer, resignation, retirement etc. d) All of the above together

12. Under “Xpress Credit Scheme”, following type of loan can be sanctioned : a) b) c) d)

Either Overdraft or Demand Loan Either Term Loan or Demand Loan Either Term Loan or Overdraft Either Term Loan or Demand Loan or Overdraft. 114


13. Under “Xpress Credit Scheme”, rate of interest will be applied as under : a) The Interest rate is based on the category of Check off available b) For Category I, 500 bps above Base Rate floating,Category II- 550 bps above Base Rate, For Category III-700 bps above Base Rate will be applied c) GM of the Network is vested with powers to extend the Category II rate to a Category III borrower only in case of employees of SB1 to SB5 rated companies who maintain their salary accounts with us. d) All of the above is applicable. 14. Under “Xpress Credit Scheme”, penal interest will be charged as under : a) Penal interest not to be charged for loans up to Rs.25,000. b) For Loans > Rs.25000/- , if irregularity exceeds EMI or instalment amount, for a period of one month, penal interest to be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. c) No penal intt., If part instalment /EMI remains overdue. d) All of the above is applicable. 15. Credit Scoring Model is applicable to Xpress Credit in case of following customers: a ) All borrowers other than DSP/PMSP Account holders b) All borrowers including DSP/PMSP Account holders c) All borrowers including DSP/PMSP Account holders with scores upto 41 as against 71 in case of other borrowers

Key to Assignment XPRESS CREDIT

Q. Ans. Q. Ans

1 a 12 b

2 c 13 d

3 b 14 d

4 d 15 c

5 c

6 c

7 c

8 b

9 d

10 a

11 d

115


‘P’ SEGMENT ADVANCES ASSIGNMENT MISC. SCHEMES 1.

Under “SBI Two Wheeler Loan”, the minimum Net Monthly Income (NMI) or NAI should be Rs.___________& Rs. ________ for being eligible for purchase of petrol/diesel/gas operated scooter & motor cycles. a) c)

2.

b) d)

3,000/-, 36,000/- respectively 6,250/-, 75,000/- respectively

4 times NMI for salaried persons & ⅓rd of NAI in case of others 5 times NMI for salaried persons & 40% of NAI in case of others 6 times NMI for salaried persons & 50% of NAI in case of others 9 times NMI for salaried persons & 75% of NAI in case of others

5 % of loan amount, may be reduced to NIL if ‘check-off’ is available 10% of loan amount, may be reduced to 5% if ‘check-off’ is available 15% of loan amount, may be reduced to 10% if ‘check-off’ is available 20% of loan amount, may be reduced to 15% if ‘check-off’ is available

Under “SBI Two Wheeler Loan”, the loan is repayable within a maximum period of ________ months. a) c)

6.


The minimum margin required for loan under “SBI Two Wheeler Loan” is: ___________ a) b) c) d)

5.


Under “SBI Two Wheeler Loan”, the maximum loan amount is restricted to: ____ a) b) c) d)

4.

b) d)

Under “SBI Two Wheeler Loan”, the minimum Net Monthly Income (NMI) or NAI should be Rs.___________& Rs. ________ for being eligible for purchase of mopeds and battery-operated Two-wheelers. a) c)

3.


24 48

b) d)

36 60

Processing fee under “SBI Two Wheeler Loan”, is 1.20% of loan amount Min: Rs._____& and Max. Rs._______ a) c)

100/-, 1000/250/-, 500/-

b) d)

500, 10,000/Nil

116


In order to be eligible under “SBI credit Khazana” the applicants need to be individuals who have: ____________________ a) Availed the housing loan b) Satisfactory serviced the loan for at least one year after the moratorium period. c) Created equitable mortgage and maintained security margin of at least 15% for purchase/construction of plot/house. d) All of the above

8.

What are the benefits available to eligible borrowers under “SBI credit Khazana”? a) b) c) d)

Relaxation in minimum income criteria under eligible schemes. Longer than usual repayment periods under eligible schemes. Concession in rate of interest only. Concession in rate of interest and margins for subsequent loans .

9.

The concession in interest rate, available under “SBI Credit Khazana”, for all loans other than housing loans is: _______ a) 1.00 % b) 0.75 % c) 0.50 % d) 0.10 %

10.

Which of the following schemes does not fall under the package of “SBI Credit Khazana” for providing concessionary benefits to eligible borrowers? a) b) c) d)

11.

The maximum quantum of loan for migration to Gulf countries (to meet Registration expenses, Test & Interview expenses, Agency commission, Visa charges, Airfare etc.) under “Loan for Nurses Seeking Employment Abroad”, is:_____________ a) c)

12.

Car Loan, Two Wheeler Loan Personal Loan, Education Loan (for one of the dependents) Gold Loan Tractor Loan

Rs. 1,00,000/Rs. 2,00,000/-

b) d)

Rs. 1,50,000/Rs. 3,00,000/-

The maximum quantum of loan for migration to UK/European countries under “Loan For Nurses Seeking Employment Abroad”, is:______ a) c)

Rs. 1,00,000/Rs. 2,00,000/-

b) d)

Rs. 1,50,000/Rs. 3,00,000/-

117


13.

The maximum quantum of loan for migration to USA under “Loan For Nurses Seeking Employment Abroad” is:________________ a) c)

14.

Rs. 1,50,000/Rs. 3,00,000/-

30 40

b) d)

35 45

“Loan For Nurses Seeking Employment Abroad” is repayable in EMIs within a period of _________ years or in lump sum. a) c)

16.

b) d)

The age of an applicant under “Loan For Nurses Seeking Employment Abroad” should not be more than _________ years. a) c)

15.

Rs. 1,00,000/Rs. 2,00,000/-

5 3

b) d)

4 2

The minimum margin required under “Loan For Nurses Seeking Employment Abroad” is: ____ a) c)

10% 20%

b) d)

15% 25%

Key to Assignment MISC. SCHEMES Q. Ans. Q. Ans

1 d 11 b

2 c 12 c

3 c 13 d

4 c 14 b

5 b 15 c

6 c 16 a

7 d

8 d

9 d

10 c

118

STATE BANK LEARNING CENTER, PANCHKULA ‘P’ SEGMENT ADVANCES ASSIGNMENT MISC. SCHEMES-II 1) Under SBI GETS Short Duration Loan, following is applicable: a) b) c) d) e)

Existing individual customers with good past relationship are eligible Loan to be liquidated in maximum period of 12 months Margin is 50% of the prevailing market prices in leading financial dailies Rate of intt is 450 bps above Base Rate All of the above

2) Under SBI GETS Short Duration Loan, following is applicable: a) b) c) d) e)

Existing individual customers with good past relationship are eligible Loan to be liquidated in maximum period of 36 months Margin is 50% of the prevailing market prices in leading financial dailies Rate of intt is 600 bps above Base Rate All of the above.

3) Under “Loans for Subscription to IPOs”, the minimum amount of loan should be: a) b) c) d)

Rs. 5,000/Rs. 10,000/Rs. 20,000/50% of the application money stipulated in the IPO

4) Under “Loans for Subscription to IPOs”, the maximum amount of loan is restricted to: ______ subject to maximum exposure of Rs. 20 lacs per person. a) Rs. 25,000/c) Rs. 50,000/-

b) d)

Rs. 40,000/Rs. 1,00,000/-

5) The minimum margin required under “Loans for Subscription to IPOs”, is ____ % of the issue price of share applied/bid. a) c)

50 30

b) d)

40 25

6) Under “Loans for Subscription to IPOs”, the loan should be repaid within _________of allotment. a) 3 months b) 2 months c) 45 days d) 30 days

119


7) The minimum margin required for loans against shares/debentures to individuals is _______% of the prevailing market price of shares / non-convertible debentures in the Stock Exchanges as reported in the Economic Times. a) 30 b) 40 c) 50 d) 60 8) The maximum amount of loan that can be granted against the security of shares/debentures is Rs. _________ lac per borrower if securities are held in physical form and Rs. ________lac if the securities are held in demat form. a) c)

25, 50 10, 20

b) d)

20, 30 5 , 10

9) The loan granted against the security of shares/debentures, should be liquidated within a maximum period of _________ months. a) c)

30 48

b) d)

36 60

10) Before the sanction of loan against the security of shares, it should be ascertained that the market price of the security is not at variance with the arithmetical average of preceding 52 weeks high and low by more than _______ % in downward direction. a) c)

20 30

b) d)

25 40

11) Before the sanction of loan against the security of shares, it should be ascertained that the P/E ratio of the company does not exceed _______ as published in Economic Times. In case P/E ratio is not available the shares should not be accepted as security. a) c)

30 40

b) d)

35 50

12) For sanction of loan against the security of shares, the total number of shares of the company traded on the NSE and BSE should exceed ________on the day of financing and on each preceding 2 days. a) c)

10,000 20,000

b) d)

15,000 25,000

120


13)

14)

What is the maximum amount of loan available under Gold Loan Scheme? a) Rs. 1.00 lac b) Rs. 2.00 lac c) Rs. 3.00 lac d) Rs. 5.00 lac The minimum amount of loan that can be granted under ‘Gold Loan Scheme’ in Rural/Semi-urban centres, is:________ a) c)

15)

b) d)

Rs. 15,000/Rs. 5,000/-

The minimum amount of loan that can be granted under ‘Gold Loan Scheme’ in Urban/Metro centres, is:________ a) c)

16.

Rs. 20,000/Rs. 10,000/-

Rs. 20,000/Rs. 10,000/-

b) d)

Rs. 15,000/Rs. 5,000/-

For loan against the security of RBI Relief Bonds to the public, a margin of ______% should be kept on bonds. a) c)

35 25

b) d)

40 20

17.

Loan against the security of RBI Relief Bonds, is repayable within a period of ________ months. a) 24 b) 36 c) 48 d) No repayment of principal and interest is compulsorily proposed. The loan can be liquidated out of maturity proceeds of Bonds.

18.

The Central Board of the Bank has recently approved the inclusion of following security/ies under the Bank’s list of ‘Specified Securities’. a) b) c) d)

19.

7% SAVINGS BONDS 2002, 6.5% SAVINGS BONDS 2003 (NON TAXABLE) 8% SAVINGS (TAXABLE) BONDS 2003 All of the above.

The minimum margin required for all loans against the Primary/Collateral security of mutual funds is _______% . a) c)

30 50

b) d)

40 60

121


Key to Assignment MISC. SCHEMES-II

Q. Ans. Q. Ans.

1 e 11 c

2 e 12 d

3 d 13 c

4 c 14 d

5 a 15 c

6 d 16 b

7 c 17 d

8 c 18 d

9 a 19 c

10 b

122


‘P’ SEGMENT ADVANCES REVERSE MORTGAGE LOAN ASSIGNMENT 1.

What is the objective of launching Reverse Mortgage Loan? a) Withdrawal of Mortgage already created by the borrower b) To provide a source of additional income for citizens of India who own self-acquired and self occupied house property in India c) To provide a source of additional income for senior citizens of India who own self-acquired and self occupied house property in India d) None of the above

2.

Reverse Mortgage Loan will be granted in the name of _________ a) b) c) d)

single borrower single or jointly with spouse in case of living spouse in the name of spouse none of the above

3.

Which type of facility is granted under Reverse Mortgage Loan? a) Term Loan b) Cash Credit c) Demand Loan d) Non-renewable Overdraft without ledger folio charges

4.

What is the quantum of the loan under Reverse Mortgage Loan? a) b) c) d)

75% of the value of the property 90% of the value of the property 50 of the value of the property 100% of the value of the property

5.

Reverse Mortgage Loan will be classified as __________in performance reports as______ a) Personal Loan b) Personal Loan against mortgage of immovable property c) Xpress Credit d) None of the above

6.

What should be the age of first borrower under Reverse Mortgage Loan? a) Above 50 years b) Above 58 years c) Above 60 years d) No such condition

123


7.

Under Reverse Mortgage Loan Borrower should not have more than one spouse whose age should be above____years a) b) c) d)

8.

50 years 58 years 60 years No such condition

Under Reverse Mortgage Loan what is the criteria about residence of the borrower a. Borrower should be staying at self acquired and self owned house/flat against which loan is being raised b. Borrower should be staying at rented house/flat against which loan is being raised c. Borrower should be staying at self acquired and self owned house/flat against which loan is being raised, as his permanent primary residence. d. no such criteria 9. Under Reverse Mortgage Loan, the verification of title of property will be done for a period of _______years. a) 10 c) 15

b) d)

20 30

10. Under Reverse Mortgage Loan, what should be the residual life of the property in case of single borrower? a) 20 c) 10

c) d)

15 25

11. Under Reverse Mortgage Loan, what should be the residual life of the property in case spouse of borrower is below 60 years of age? a) 20 c) 10

c) d)

15 25

12. What security will be taken under Reverse Mortgage Loan? a. b. c. d.

Equitable mortgage of residential property Equitable mortgage of commercial property Regd. Mortgage of commercial property No security is required

124


13. In case the age of the younger of the borrowers is between 58 and upto 68 years. the maximum Tenor of the loan under Reverse Mortgage Loan is___years a) 15 c) 5

b) d)

10 20

14. In case the age of the younger of the borrowers is above 68 years, the maximum Tenor of the loan under Reverse Mortgage Loan is___years a) 15 c) 5

b) d)

10 20

15. Disbursement of Reverse Mortgage Loan will be by___________ a. b. c. d.

issuing banker cheque issuing bank draft TDR of the amount will be made Credit to Saving Bank account in the joint name of the borrowers operated by E or S

16. What is the periodicity of availing Reverse Mortgage Loan? a. b. c. d.

Monthly/half yearly LumpSum Monthly /quarterly b&c

17. What is the Repayment/Settlement of Reverse Mortgage Loan? a. When the last surviving borrower dies b. When the last surviving borrower opts to sell the home or permanently moves out of the home c. Settlement with accumulated interest by sale proceeds of residential property or prepayment by borrower and his next of kin d. Any of the above 18. What will be the Pre-Payment penalty under Reverse Mortgage Loan? a) b) c) d)

1% of amount prepaid 0.5% of amount prepaid no prepayment penalty depends upon the sanctioning authority

125


19. What is the periodicity of valuation/Revaluation of property under Reverse Mortgage Loan a. b. c. d.

3 years once in 2 years every year 5 years after initial valuation

20. What are the processing charges for loan granted under Reverse Mortgage Loan? a. b. c. d.

0.50% of loan amount, minimum Rs. 500/- and maximum Rs. 10,000/1.00% of loan amount, minimum Rs. 500/- and maximum Rs. 10,000/0.50% of loan amount, minimum Rs. 500/- and maximum Rs. 5,000/nil

21. Right of Rescission i.e right of the customer to cancel the transaction after disbursement is within____days. a. b. c. d.

15 days 7 days 20 days it is not allowed

22. The borrower will make a ________ and handover to the lender to enable him to recover the loan. a. b. c. d.

Power of Attorney Letter of Authority Will Registered Will

KEY TO ASSIGNMENT NO. REVERSE MORTGAGE LOAN

1 c 12 a

2 b 13 a

3 d 14 b

4 b 15 d

5 b 16 d

6 c 17 d

7 b 18 c

8 c 19 d

9 d 20 a

10 a 21 b

11 d 22 c

126


ASSIGNMENT SME POWERGAIN, POWERPACK & SAHAJ 1.

What is the required QAB for SME POWERGAIN? a) b) c) d)

2.

What is the required QAB for SME POWERPACK? a) b) c) d)

3.

Rs. 10,000/Rs. 1,00,000/Rs. 5,00,000/No such requirement


What is the penalty for non-maintenance of QAB for SME POWERGAIN (a) Rs. 2,000/- per quarter (b) Rs 5,000/- per quarter (c) Rs 4,000/- per quarter (d) Rs. 6,000/- per quarter

4.

What is the penalty for non-maintenance of QAB for SME POWERGAIN a) b) c) d)

5.

Rs. 2,000/- per quarter Rs 5,000/- per quarter Rs 4,000/- per quarter Rs. 6,000/- per quarter

What concession in charges is available for sending remittance under RTGS under SME POWERGAIN (a) 10%

6.

(b) 25%

(c) 50%

(d) No concessions

What are the transaction charges of Multi City Cheques for SME POWERGAIN accounts? (a) Rs 25/- per cheque up to Rs 5 lacs and Rs 50/- for amt. above Rs 5 lacs (b) Rs 10/- per cheque up to Rs 5 lacs and Rs 25/- for amounts above Rs 5 lacs (c) Rs 50/- per cheque up to Rs 5 lacs and Rs 100/- for amounts above Rs 5 lacs (d) No charges

127


What are the transaction charges of Multi City Cheques for SME POWERGAIN accounts? a) b) c) d)

8.

Rs 25/- per cheque up to Rs 5 lacs and Rs 50/- for amt. above Rs 5 lacs Rs 10/- per cheque up to Rs 5 lacs and Rs 25/- for amounts above Rs 5 lacs Rs 50/- per cheque up to Rs 5 lacs and Rs 100/- for amounts above Rs 5 lacs No charges

What is the penalty for closure of accounts within 12 months in respect of SME POWERGAIN (a) Rs 2500/(c) Rs 5000/-

9.

(b) Rs 1500/(d) No charges

What is the penalty for closure of accounts within 12 months in respect of SME POWERPACK (a) Rs 2500/(c) Rs 5000/-

10.

Cheque return protection facility is available for amount upto-------for max period of 10days at a time under SME POWERGAIN. a)Rs50000/-

11.

c)Rs25000/-

d)Rs40000/-

b)Rs 1,00,000/-

c)Rs25,000/-

d)Rs40,000/-

.Under SME POWERGAIN maximum daily withdrawal limit through ATM is a) Rs40000/-

13.

b)Rs 10000/-

Cheque return protection facility is available for amount upto-------for max period of 10 days at a time under SME POWERPACK. a)Rs50,000/-

12.

(b) Rs 1500/(d) No charges

b) Rs25000/-

c)Rs50000/-

d)Rs45000/-

.Under SME POWER PACK maximum daily withdrawal limit through ATM is a) Rs40000/-

b) Rs25000/-

c)Rs50000/-

d)Rs45000/-

14.

One of the following facilities is not free either in SME POWERGAIN or POWERPACK

.

a) issuing of duplicate statement b) ledger folio charges c) Issuance of Banker Cheque d) collection of cheques drawn on other banks

128


15.

SAHAJ is a: a) Home Loan product for Power sector employees b) Current account for SME Entrepreneurs having small means c) Education loan for students pursuing studies in prestigious institutes d) Financing scheme for rural electrification projects

16.

What is QAB in respect of SAHAJ Current Account? a) Rs 500/- per quarter b) Rs 750/- per quarter c) Rs 1000/- per quarter d) Rs 2000/- per quarter

17.

SAHAJ Current Account can be opened by a) Individual customers c) Partnership Firms

18.

b) Proprietorship Firms d) Any of these

The cheque book facility has now been extended to SME Sahaj current accounts with one of the following conditions. a) Number of cheque leaves to be issued per financial year to be restricted to 25 leaves with a charge of Rs. 5 per leaf b) Additional requirement of further cheque leaves may be permitted with a charge of Rs.10 per leaf. c) Drawings per cheque to be limited to Rs. 15,000/- Each cheque leaf to carry this inscription. d) All of the above

19.

What is the penalty for non-maintenance of QAB in respect of SAHAJ Current Account? a) Rs 300/- per quarter b) Rs 250/- per quarter c) Rs 350/- per quarter d) Rs 400/- per quarter

20.

One of the following is not true about SAHAJ Current Account? a) Maximum amount for which cheque can be drawn is Rs10000/b) Maximum withdrawal permitted through ATM is Rs15000/c) Minimum balance required for opening the account is Rs1000/d) Internet banking facility is free of cost

129

STATE BANK LEARNING CENTER, PANCHKULA KEY TO ASSIGNMENT SME POWERGAIN, POWERPACK & SAHAJ

1

2

3

4

5

6

7

8

9

b

c

a

b

d

a

d

a

c

10

11

12

13

14

15

16

17

18

c

b

b

d

d

b

c

d

d

19

20

a

d

130


ASSIGNMENT SME POWER, & SAHAJ 1.

QAB required to be maintained for SME power pack is? a) b) c) d)

2.


Which of the following is not true? a) b) c) d)

QAB required to be maintained QAB required to be maintained QAB required to be maintained QAB required to be maintained

for SME power gain is Rs. 1,00,000/for SME power advantage is Rs. 2,00,000/for SME power previlege is Rs 3,00,000/for SME power premium is Rs 5,00,000/-

3.Which of the following is not true in respect of SME power pack a) b) c) d)

Cash deposit in home branch is free upto any amount Issue of draft and banker cheque is free RTGS /NEFT is free Outstation cheque collection is free

4.

The no of current accounts that can be opened under SME power is ----a) 8 b) 9 c) 7 d) 10

5.

The account with minimum QAB amongst the different current accounts under SME power is (a) SME super

6.

(b) SME lite

(c) SME base

(d) none of these

Multicity cheques are not issued free for which of the following? (a) SME power gain (b) SME power advantage (c) SME power super (d) None of the above

7.

Transaction charges on multicity cheques is not applicable in case of which of the following type of SME power pack? 131


a) b) c) d) 8.

SME power super SME power gain SME power base SME power lite Cash withdrawal limit in case of international ATM card meant for SME power pack,SME power premium and SME power privilege is (a) Rs 50000/(c) Rs25000/-

(b) Rs 15000/(d) Rs45000/-

9.

Cash withdrawal limit in case of domestic ATM card meant for SME power gain,SME power super and SME power base , SME power lite is (a) Rs 50000/(b) Rs 30000/(c) Rs 40000/(d) 35000/-

10.

Cash deposit in home branch is free upto Rs------lac in SME Power advantage, in a month a)25

11.

c)20

d)40000

Cash deposit in home branch is free upto Rs------lac in SME Power base, in a month. a)4

12.

b)30

b) 3

c)5

d)6

.Charges for cash withdrawal at home branch in case of SME power base is a) Rs25/-

b) Rs20/-

c)Rs15/-

d)nil

13.

.Standing instructions charges are nil in case of which of the following accounts a) SME power gain b) SME power base c)SME power lite d) SME power super

14.

Which of the following is not true about SME power gain

.

a) issuing of duplicate statement is free b) pre approved car loan for promoters is there c) ATM card issued to it is ATM power gain card d) there are no charges for NEFT

132


15.

SAHAJ is a: a) Home Loan product for Power sector employees b) Current account for SME Entrepreneurs having small means c) Education loan for students pursuing studies in prestigious institutes d) Financing scheme for rural electrification projects

16.

What is QAB in respect of SAHAJ Current Account? a) Rs 500/- per quarter b) Rs 750/- per quarter c) Rs 1000/- per quarter d) Rs 2000/- per quarter

17.

SAHAJ Current Account can be opened by a) Individual customers c) Partnership Firms

18.

b) Proprietorship Firms d) Any of these

The cheque book facility has now been extended to SME Sahaj current accounts with one of the following conditions. a) Number of cheque leaves to be issued per financial year to be restricted to 25 leaves with a charge of Rs. 5 per leaf b) Additional requirement of further cheque leaves may be permitted with a charge of Rs.10 per leaf. c) Drawings per cheque to be limited to Rs. 15,000/- Each cheque leaf to carry this inscription. d) All of the above

19.

What is the penalty for non-maintenance of QAB in respect of SAHAJ Current Account? a) Rs 300/- per quarter b) Rs 250/- per quarter c) Rs 350/- per quarter d) Rs 400/- per quarter

20.

One of the following is not true about SAHAJ Current Account? a) Maximum amount for which cheque can be drawn is Rs10000/b) Maximum withdrawal permitted through ATM is Rs15000/c) Minimum balance required for opening the account is Rs1000/d) Internet banking facility is free of cost

133


KEY TO ASSIGNMENT SME POWER & SAHAJ

1

2

3

4

5

6

7

8

9

b

d

d

a

c

d

b

a

c

10

11

12

13

14

15

16

17

18

c

a

d

a

b

b

c

d

d

19

20

a

a

134


SME POWER, POWER JYOTI & SURABHI 1.

2.

QAB under the new SME Power can range from ------- to ---------a)Rs20000, Rs5.00lacs b)Rs25000, Rs2.00lacs c)Rs10000, Rs2.00lacs d)Rs25000, Rs5.00lacs A facility which is not available in the new power CA is a) Free internet banking b) unlimited free cash withdrawal at home branch c) cheque return protection facility d) Issue of multicity cheques free of charge

3.

RTGS facilty is not free for which of the following SME power CAs a)Power gain b)Power lite c)power privilege d)power pack

4. Penalty for closure of account within 12 months in case of SME Power pack is a)Rs2000/-

b)Rs5000/-

c)Rs10000/-

d)Nil

5. The charges for non maintenance of QAB varies from minimum of -------to maximum of ------depending upon the type of power CA a)Rs3000/-, Rs7000/c)Rs3000/- , Rs10000/-

b)Rs2000/- , Rs10000/d)Rs 2000/- ,Rs15000/-

6.Which of the following is not true in respect of deposit of cash at home branch a) Cash deposit at home branch is free upto Rs20.00lacs per month in case of Power Advantage b) Cash deposit at home branch is free upto Rs5.00lacs per month in case of Power lite c) Cash deposit at home branch is free upto Rs15.00lacs per month in case of Power gain d) Cash deposit at home branch is free upto Rs10.00lacs per month in case of Power super. 7.

All categories of salary accounts are not permitted to be opened in case of which of the following SME power accounts. a) b) c) d)

SME power gain SME power previlege SME power pack SME power premium 135


Which of the following is not true in respect of SME power base a) Cheques drawn on non home branch and collected at home branch is free intra city. b) RTGS is free c) ATM card provided is ATM power gain d) CINB is free 9.

Issue of cheque books (other than multi city cheque ) is not free in case of which of the following SME current accounts. a)SME power lite

10.

b)SME power pack

c)SME power advantage

POWER JYOTI is a a) Home Loan product for Power sector employees b) Current account for fee collection c) Education loan for students pursuing studies in prestigious institutes d) Financing scheme for rural electrification projects

11.

What is QAB in respect of POWER JYOTI Current Account? a) Rs 5000/- per quarter b) Rs 50,000/- per quarter c) Rs 1,00,000/- per quarter d) Rs 25,000/- per quarter

12.

What is the penalty for non-maintenance of QAB in respect of POWER JYOTI Current Account? a) Rs 1000/- per quarter b) Rs 2500/- per quarter c) Rs 3500/- per quarter d) Rs 4000/- per quarter

13.

What is the penalty for closure of accounts within 12 months in respect of POWER JYOTI Current Account? a) Rs 500/b) Rs 300/c) Rs 400/d) No charges

14.

One of the following is not true about POWER JYOTI Current account a) Transactions other than fee collection/donation are not permitted b) Cheque book facility is not available c) No fee collection charges are taken from the person remitting fees d) Cash handling charges waived 136


15.

For activation of fee collection module under the POWER JYOTI Current Account scheme the option to be chosen in core while opening the account is. a) Statement/mail option/fee collection b) Term a/c options c) Govt/PPF/Cr card details d) core options

16.

One of the following is not true about POWER JYOTI Current account a) b) c) d)

17

No cheque book is issued on the account Cash, transfer and clearing transactions are permitted No overdraft is permissible There are charges for CINB facility

Surabhi is a combination of fixed deposit and a) current account b) saving bank account c) either a or b d) neither a nor b

18. 19.

The amount of loan available under this scheme is a) Rs10000/- b)80% of deposit c)nil d)75% SBI Surabhi deposit account can be opened by a) b) c) d) e)

20.

Corporate Institutions Trusts Small & Medium Enterprises who manage the PF All of the above-

Under SBI Surabhi deposit scheme, any surplus funds in the account exceeding the threshold limit are transferred to a) Multi Option Deposits c) Corporate Liquid Term Deposits

21.

of deposit

b) Special Term Deposits d) Recurring Deposits

Minimum & maximum period of fixed deposit under SBI Surbahi is a) 12 months & 60 months c) 12 month & 36 months

b) 24months & 48 months d) 12months & 24 months .

137


Under SBI Surabhi, minimum amount of deposit to be maintained in Current Account and Saving Account is Rs. _______ & Rs._______ a) b) c) d)

23.

10,000/-, 15,000/-, 16,000/-, 17,000/-,

1000/2000/3000/4000/-

Under SBI Surabhi deposit scheme, the threshold balance required is Rs.______over which sweep will take place. a) Rs.25,000

24.

b) 1,00,000

c) Rs.50,000

d) Rs.1,000

Under SBI Surabhi deposit scheme, funds can be deposit for a the period ranging from a) 1 to 2 years

b) 1 to 3 years

c) 2 to 5 years

d)1 to 5 years

KEY TO ASSIGNMENT SME POWER, POWER JYOTI & SURABHI

1 a 10 b 19 e

2 c 11 d 20 c

3 b 12 a 21 c

4 b 13 a 22 a

5 c 14 c 23 c

6 b 15 a 24 b

7 a 16 d 25 c

8 b 17 c

9 d 18 c

138

STATE BANK LEARNING CENTER, PANCHKULA MICRO ADVANCES 1.

The applicable rate of interest on DIR advances is: a) c)

2.

b) d)

8000/12,000/-

20,000/15,000/-

b) d)

10,000/12,000/-

10,000/15,000/-

b) d)

12,000/18,000/-

Family Income under DIR advances has been increased from Rs. 7200/- to Rs. ____ in Urban areas a) c)

6.

10,000/15,000/-

Family Income under DIR advances has been increased from Rs. 6400/- to Rs. ____ in rural areas a) c)

5.

4% 6%

Loan limit for beneficiaries of Indira Awaas Yojana under DIR advances has been increased from Rs. 6500/- to Rs. ____ a) c)

4.

b) D)

Loan limit under DIR advances has been increased from Rs. 6500/- to Rs. ____ a) c)

3.

10% 7%

20,000/15,000/-

b) d)

24,000/30,000/-

The new name of Prime Minister Rozgar Yojna is: PRIME MINISTER’S NEW EMPLOYMENT GENERATION PROGRAMME (PMNEGP) b) PRESIDENT EMPLOYMENT PROGRAMME (PEP) c) PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP) d) MINISTER’S EMPLOYMENT GENERATION PROGRAMME (MEGP) a)

7.

Under PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP), the maximum cost of the project/unit admissible under manufacturing sector is Rs.___ lakhs. a) c)

10 5

b) d)

25 2 139


Under PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP), the maximum cost of the project/unit admissible under business/service sector is Rs.___ lakhs. a) c)

9.

60 90

50 80

b) d)

60 95

2-3 years 3-5 years

b) d)

3-4 years 3-7 years

3 months 18 months

b) d)

12 months 6 months

Under PMEGP, the rate of subsidy of project cost in case of General category in urban area will be _____% a) b) c) d)

14.

b) d)

What is Moratorium Period under PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP): a) c)

13.

50 80

Under PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP), the maximum repayment period is: a) c)

12.

25 2

Under PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP), the Bank will sanction ___% of the project cost in case of SC/ST Category of a) c)

11.

b) d)

Under PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP), the Bank will sanction ___% of the project cost in case of General Category of a) c)

10.

10 5

10% 15% 20% 25%

Under PMEGP, the rate of subsidy of project cost in case of General category in Rural area will be _____% a) c)

10% 20%

b) d)

15% 25% 140


15.

Under PMEGP, the rate of subsidy of project cost in case of SC/ST/OBC/Minority/Women/Ex-Servicemen/Physically Handicapped, in Hill & Border areas of an urban area will be _____% a) b) c) d)

16.

Under PMEGP, the rate of subsidy of project cost in case of SC/ST/OBC/Minority/Women/Ex-Servicemen/Physically Handicapped, in Hill & Border areas of an rural area will be _____% a) b) c) d)

17.

50,000/1,00,000/-

b) d)

20,000/2,00,000/-

No Collateral Security will be taken for loan of Rs.____ granted to a Group under SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY) a) c)

20.

SELF GRAM SWAROZGAR YOJANA SUDARSHAN GRAM SWAROZGAR YOJANA SUPER GRAM SWAROZGAR YOJANA SWARNAJAYANTI GRAM SWAROZGAR YOJANA

No Collateral Security will be taken for loan of Rs.____ granted to an individual under SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY) a) c)

19.

10% 35% 20% 25%

What is the meaning of SGSY: a) b) c) d)

18.

25% 15% 20% 35%

10,00,000/5,00,000/-

b) d)

3,00,000/2,00,000/-

Subsidy under SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY) is____.____ under General Category beneficiaries a) b) c) d)

10% of the Project Cost Max Rs. 5000/20% of the Project Cost Max Rs. 6000/30% of the Project Cost Max Rs. 7500/40% of the Project Cost Max Rs. 10,000/-

141


Subsidy under SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY) is____.____ under SC/ST beneficiaries a) b) c) d)

22.

Nodal agency for the implementation of PMEGP at the national level is: a) c)

23.

RBI KVIC

b) d)

NABARD Ministry of Micro, Small & Medium Enterprises

Finance to SC/ST beneficiaries should not be less than ______% of total finance under DIR Advances a) c)


10% of the Project Cost Max Rs. 5000/20% of the Project Cost Max Rs. 6000/30% of the Project Cost Max Rs. 7500/50% of the Project Cost Max Rs. 10,000/-

25 40

1 B 11 D 21 D

b) d)

2 C 12 B 22 C

KEY MICRO 3 4 A D 13 14 B D 23 C

30 50

ADVANCES 5 6 B C 15 16 A B

7 B 17 D

8 A 18 C

9 D 19 A

10 D 20 C

142

STATE BANK LEARNING CENTER, PANCHKULA DEFINITION OF SME & SBI SME COLLATERAL- FREE LOANS (SMECFL) E1.1…1 1. SBI’ definition of SME is: a) b) c) d)

Enterprises with a limit of Rs. 25 Crores Enterprises with a limit of Rs. 50 Crores Enterprises with a turnover of Rs. 50 Crores Enterprises with a turnover of Rs. 25 Crores

2. As per MSMED Act, 2006 investment in Plant & Machinery of Micro Enterprises will not exceed Rs._______ lacs in case of Industrial Enterprises & Rs. ______lacs in case of Service Enterprises. a) b) c) d)

25, 10 10, 25 10, 10 15, 25

3. As per MSMED Act, 2006 investment in Plant & Machinery of Small Enterprises will not exceed Rs._______ Crores in case of Industrial Enterprises & Rs. ______Crores in case of Service Enterprises. a) b) c) d)

25, 10 10, 25 05, 02 25, 25

4. As per MSMED Act, 2006 investment in Plant & Machinery of Medium Enterprises will not exceed Rs._______ Crores in case of Industrial Enterprises & Rs. ______Crores in case of Service Enterprises. a) b) c) d)

25, 10 10, 05 05, 02 25, 25

5. Who can be granted credit facility under SBI SME collateral- free loans (SMECFL) scheme? a) b) c) d)

Micro & small Enterprises-Manufacturing Micro & small Enterprises-Services Traders a&b

143


6. The purpose of granting credit facility under SBI SME collateral- free loans Scheme is: a) Equipment Finance c) Term Loan

b) d)

Working Capital Working Capital & TL for building/Office, Equipment purchase

7. Which type of credit facility will be granted under SBI SME collateral- free loans Scheme is: a) Cash Credit c) Term Loan

b) d)

L.C./B.G All of the above

8. The Term Loan granted under SBI SME collateral- free loans Scheme is repayable in _________years including moratorium period. a) 7 c) 4

b) d)

5 3

9. Borrower is required to submit ________Stock Statement for loan upto Rs. 25 lacs under SBI SME collateral-free loans Scheme. a) b) c) d)

Monthly Quarterly Half Yearly Yearly

10. What is the maximum quantum of advance that can be provided under SBI SME collateral- free loans Scheme? a) Rs. 10.00 lacs c) Rs. 25.00 lacs

b) d)


11. In case a unit intends to avail credit facility under SBI SME collateral- free loans Scheme, which type of collateral security the bank will take? a) EM/RM c) TPG 12.

b) d)

May be covered under CGTMSE Mandatory covered under CGTMSE

As per the scoring model for covered under SBI SME collateral- free loans Scheme, a unit has to score minimum of ____% score to qualify under the scheme a) 50 c) 70

b) d)

60 All bankable loans are eligible 144


Working Capital Limit under SBI SME collateral- free loans Scheme of a manufacturing enterprises will be assessed at ____% of their projected annual turnover & that of service enterprises will be assessed at ____% of their projected turnover a) 15, 15 c) 20, 15

14.

Traditional Method PBS Method

b) d)

Quarterly Yearly

b) d)

SB-9 & above SB-7 & above

Loan Processing and Service Charges under SBI SME collateral- free loans Scheme is _________% of normal charges a) 25 c) 60

19

b) d)

For Loans between Rs.25 lacs to Rs. 1.00 Crore under SBI SME collateral- free loans Scheme unit s rating should be a) SB-8 & above c) SB-10 & above

18.

50 100

The periodicity of stock statement in case of loan above Rs. 25.00 lacs under SBI SME collateral- free loans Scheme is a) Monthly c) Half-yearly

17

b) d)

Limit under SBI SME collateral- free loans Scheme to a manufacturing enterprises will be assessed as per a) Operating Cycle Method c) Nayak Committee

16.

25, 15 20, 20

Term Loan under SBI SME collateral- free loans Scheme to will be assessed at _____% of project cost a) 25 c) 75

15.

b) d)

b) d)

50 75

Bank has decided to make all loans to Micro and Small Enterprises (MSEs) up to Rs. _________ lacs compulsorily collateral free, subject to these being found eligible for cover under the guarantee scheme of CGTMSE, except in cases where the borrower opts out of the scheme and provides adequate and acceptable collaterals. a) 10 c) 25

b) d)

15 50 145


20.

Under SBI SME collateral- free loans Scheme, the chief promoter /chief executive should be __________ years of age a) 21-65 c) 21-70

b) d)

18-65 No specific age limit restrictions

KEY TO ASSIGNMENT DEFINITION OF SME & SBI SME COLLATERAL- FREE LOANS (SMECFL) 1 c 11 d

2 a 12 d

3 c 13 c

4 b 14 c

5 d 15 c

6 d 16 a

7 d 17 c

8 a 18 b

9 b 19 c

10 b 20 d

146


ASSIGNMENT SME CREDIT CARD & SMART SCORE 1. Who can be granted credit facility under SME Credit Card Scheme? a) Small industrial units c) Prof. & self-employed

b) d)

Small retail traders All of above

2 What is the maximum quantum of advance that can be provided under SME Credit Card Scheme? a) Rs. 5.00 lacs c) Rs. 15.00 lacs

`

b) d)


3 Which type of credit facility can be provided under SME Credit Card Scheme? a) Demand loan c) Term Loan

b) d)

Cash Credit Both (b) and (c) above

4 Term Loan portion under SME Credit Card Scheme will be repaid in a maximum of ____years in suitable instalments a) 3 b) 5 c) 7 d) 9 5 In case a SSI unit intends to avail credit facility under SME Credit Card Scheme, which type of collateral security the bank will take? a) EM c) TPG

b) d)

RM To be covered under CGTMSE

6 The limit sanctioned under SME Credit Card Scheme is valid for ____years a) 1 c) 3

b) d)

2 5

7 As per the scoring model for SME Credit Card Scheme, a unit has to score minimum of ____% score to qualify under the scheme a) 50 c) 70

b) d)

60 80

147

STATE BANK LEARNING CENTER, PANCHKULA 8 In case a SBF unit intends to avail credit facility under SME Credit Card Scheme, which type of collateral security the bank will take? a) To be covered under CGTMSE c) Third Party Guarantee

b) d)

Moveable/Immovable property Any of the above

9 Limit under SME Credit Card Scheme of a small business unit/retail trader will be assessed at ____% of their annual turnover or ____% of turnover of the last 12 months in their accounts, whichever is higher a) 10, 10 c) 20, 20

b) d)

15, 15 25, 25

10 Limit under SME Credit Card Scheme to Professional and Self employed persons will be assessed at _____% of gross annual income as declared in their income tax return a) 25 c) 75

b) d)

50 100

11 Limit under SME Credit Card Scheme to a SSI unit will be assessed as per a) Operating Cycle Method c) Nayak Committee

b) d)

Traditional Method PBS Method

12 The periodicity of stock statement in case of SME Credit Card Scheme is a) Monthly c) Half-yearly

b) d)

Quarterly Yearly (28TH Feb)

13 Under which segments, units can be covered for financing under Smart Score? a) P c) SME

b) d)

Agr None of above

14 Which category can be covered for financing under SME Smart Score? a) Sole Proprietor c) Closely held Public/Pvt. Ltd. Cos.

b) d)

Partnership All of above

15 The Chief promoter/Chief executive of the unit, who intends to avail credit facility under SME Smart Score should be ____-____years of age a) 18-60 c) 21-65

b) d)

21-62 18-65

148


16 For becoming eligible to avail credit facility under SME Smart Score the minimum overall score of the unit is ______% a) 50 c) 70

b) d)

60 80

17 The unit should score a minimum score of ___% under each sub head of Business, Personal and Collateral for becoming eligible to avail credit facility under SME Smart Score a) 50 c) 70

b) d)

60 80

18 In case of Working Capital needs, a SSI Unit can be granted __% of annual turnover subject to a maximum of not exceeding Rs.__lacs under SME Smart Score a) 10, 15 c) 20, 50

b) d)

15, 20 25, 30

19 In case of Term Loan, a SSI unit can be granted ___% of project cost subject to a maximum of not exceeding Rs._________lacs under SME Smart Score a) 47, 15 c) 67, 50

b) d)

57, 20 75, 50

20 Moratorium on Term Loan under SME Smart Score can be provided for a period not exceeding ____months a) 3 c) 9

b) d)

6 12

21 Term Loan under SME Smart Score will be repaid in maximum of ____years excluding moratorium period a) 5 c) 8

b) d)

7 9

149


22 M/s. Parbod Kumar Subodh Kumar, a SSI unit has applied for Rs. 45 lac working capital loan. Which of the following CRA model under SME Smart Score will be applicable a) CRA Old Model c) Risk Matrix Model

b) d)

Non Trading Regular Model Non Trading Simlified Model

23 In case of Working Capital needs, a unit other than SSI can be granted ___% of annual turnover subject to a maximum of not exceeding Rs. ____lacs under SME Smart Score a) 10, 15 c) 15, 25

b) d)

15, 20 20, 25

24 In case of Term Loan, a unit other than SSI can be granted ___% of project cost subject to a maximum of not exceeding Rs. ____lacs under SME Smart Score a) 47, 15 c) 67, 25

b) d)

57, 20 75, 25

25 Working Capital Limit under SME Smart Score Scheme is sanctioned for a period of _____ years subject to annual review. a) 1 c) 2

b) d)

3 5

KEY TO ASSIGNMENT SME CREDIT CARD & SMART SCORE

1 d 10 d 19 c

2 b 11 c 20 b

3 d 12 d 21 a

4 b 13 c 22 d

5 d 14 d 23 c

6 c 15 d 24 c

7 b 16 b 25 c

8 d 17 a

9 c 18 c

150

STATE BANK LEARNING CENTER, PANCHKULA ASSIGNMENT SME Credit Plus, Artisan & Swarojgar Credit Card 1 SME Credit Plus can be granted to SSI borrowers for _______ a) c)

Meeting bulk orders Tax Payments

b) d)

Repairs to Machinery All of above

2 Maximum loan under SME Credit Plus can be granted to the tune of ____% of aggregate working capital limit or Rs. ___lacs, whichever is lower a) c)

20, 25 25, 25

b) d)

20, 30 25, 30

3 Which type of credit facilities will be granted under SME Credit Plus a) c)

Clean Cash Credit Term Loan

b) d)

Cash Credit All of above

4. There should be a gap of ________days between the last date of repayment of outstandings and the next withdrawal. a) c)

10 20

b) d)

15 30

5. What will be the primary security in case of credit facilities under SME Credit Plus a) c)

Hyp. Of stocks Both of (a) and/or (b)

b) d)

Hyp. Of Book Debts None of above

6. Each withdrawal for the additional limits provided under SME Credit Plus, should be repaid within _____months a) c)

1 3

b) d)

2 4

7. Under Artisan Credit Card Scheme, which type of borrowers will be preferred? a) b) c) d)

Artisans SSI units Artisans regd. with development Commissioner (handicrafts) None of above

151

STATE BANK LEARNING CENTER, PANCHKULA 8. Which type of facility will be provided under Artisan Credit Card Scheme? a) Cash Credit c) Demand Loan

b) d)

Term Loan All of above

9. What is the maximum amount of finance available under Artisan Credit Card Scheme? a) Rs. 1.00 lac c) Rs. 2.00 lacs

b) d)


10. _________% margin will be obtained for loan sanctioned over Rs. 25000/- and up to Rs. 2 lacs under Artisan Credit Card Scheme? a) 10 c) Nil

b) d)

20 25

11. Which collateral security shall be taken by the bank while financing under Artisan Credit Card Scheme? a) EM of immovable c) cover under CGTMSE

b) d)

TPG No security

12. The portion of limit used for purchase of tools etc. may be made repayable in ______years under Artisan Credit Card Scheme a) 3 c) 7

b) d)

5 9

13. What is target group of borrowers to be covered under Swarojgar Credit Card Scheme? a) Self employed persons c) SHGs

b) d)

Service sector All of above

14. Normally credit facilities to the tune of Rs. 25,000 per borrower can be sanctioned under Swarojgar Credit Card Scheme. This amount can be raised to Rs. ________ in deserving cases a) 30000 c) 50000

b) d)

40000 60000

15. Which type of facility will be sanctioned under Swarojgar Credit Card Scheme? a) Term Loan c) Composite Term Loan

b) d)

Cash Credit Demand Loan 152


16. Which method will be applied while assessing the limit under Swarojgar Credit Card Scheme? a) Nayak Committee c) Traditional Method

b) d)

Operating Cycle Method PBS Method

17. _________% margin will be obtained for loan sanctioned under Swarojgar Credit Card Scheme? a) 10 c) Nil

b) d)

20 25

18. Term Loan component under Swarojgar Credit Card Scheme will be repaid in ______years a) 3 c) 7

b) d)

5 9

19. The borrowers under Artisan Credit Card & Swarojgar Credit Card Scheme will be covered under which scheme? a) Super Surksha c) Group Insurance

b) d)

Swadhan Pension Plan

20. Which type of collateral security should be taken by the bank from the borrowers under Swarojgar Credit Card Scheme? a) EM c) Specified Security

b) d)

RM No collateral

21. Whether SCC holder can be permitted to open a Saving bank account? a) c)

No. If loan availed is Rs. 5000/- only

b) d)

Yes If Only TL is availed

KEY TO ASSIGNMENT SME Credit Plus, Artisan & Swarojgar Credit Card 1 d 12 a

2 a 13 d

3 a 14 a

4 b 15 c

5 d 16 b

6 b 17 c

7 c 18 b

8 a 19 c

9 c 20 d

10 b 21 b

11 d

153


CGTMSE 1. CGTMSE stands for a) b) c) d)

Credit Guarantee Trust for Micro and Small Enterprises Credit Guarantee Fund Trust for Micro and Small Enterprises Credit Guarantee Trust for Manufacturing & service Enterprises Credit Guarantee Fund Trust for Manufacturing & service Enterprises

2. CGTMSE shall cover Credit Facilities (FB and / or NFB) sanctioned on or after 08.12.2008 extended by Member Lending Institutions to a single eligible borrower in the MSE Sector for Credit Facility not exceeding ______ by Scheduled Commercial Banks and select Financial Institutions by way of Term Loan and / or Working Capital Facilities, without any Collateral Security and / or Third party Guarantees a) c)


b) d)


3. Advances to ____ are not covered by the Credit Guarantee Cover from CGTMSE as they are not defined as MSME as per the MSMED Act, though such loans upto Rs. 20 lacs will form part of Priority Sector Advance a) c)

Retail Traders Both a & b

b) d)

Medium Enterprises Transport Operators

4. As per RBI guidelines, banks are to extend Collateral free loans upto ____ to all new units under MSE Sector (both Manufacturing & Service Enterprises as defined in MSMED Act, 2006). However, in all eligible cases, we have to obtain Credit Guarantee Cover from CGTMSE to protect the Bank’s interests a) c)


b) d)


5. CGTMSE will cover __________type of credit facilities. a) b) c) d)

Fund based Non Fund based Either of two both a & b

154

STATE BANK LEARNING CENTER, PANCHKULA 6. Borrower under _______category will be covered under CGTMSE a) b) c) d)

Micro Enterprises Small Enterprises Medium Enterprise a&b

7. The maximum extent of guarantee cover under CGTMSE where credit facility is upto Rs. 5.00 lacs is Rs._____lacs a) c)


b) d)


8. All proposals for sanction of guarantee approvals for credit facilities above Rs. 50 lacs and upto Rs. 100 lacs will have to be rated _____and should be of_____grade. a) b) c) d)

externally, investment internally, satisfactory externally, AAA internally, investment

9. The maximum extent of guarantee cover under CGTMSE is Rs._____lacs a) c)

50 65

b) d)

60 62.50

10. One time Guarantee Fee will be paid to CGTMSE in case of credit facility upto Rs. 5 lacs in North East Region is _______% & in other regions is _______% a) b) c) d)

2.5, 3.00 1.5, 2.00 0.75, 1.00 1.00, 1.50

11. One time Guarantee Fee will be paid to CGTMSE in case of credit facility above Rs. 5 lacs to Rs. 50 lacs in North East Region is _______% & in other regions is _______% a) b) c) d)

0.75, 1.50 1.5, 2.00 0.75, 1.00 1.00, 1.50

155

STATE BANK LEARNING CENTER, PANCHKULA 12. One time Guarantee Fee will be paid to CGTMSE in case of credit facility above Rs. 50 lacs in North East Region is _______% & in other regions is _______% a) b) c) d)

2.5, 3.00 1.50, 1.50 0.75, 1.00 1.00, 1.50

13._____% as Annual Service Fee will be paid to CGTMSE in case of credit facility upto Rs. 5 lacs. a) c)

2.5 0.75

b) d)

1.50 0.50

14. _____% as Annual Service Fee will be paid to CGTMSE in case of credit facility above Rs. 5 lacs. a) c)

2.5 0.75

b) d)

1.50 0.50

15. Member Lending Institutions can lodge claim to CGTMSE, within a maximum period of _______ year from date of NPA. a) c)

1 3

b) d)

2 4

16. Member Lending Institutions can lodge claim to CGTMSE, after lock in period of _______months either from the date of last disbursement or the date of issuance of guarantee cover, whichever is later a) b) c) d)

6 months 12 months 18 months 24 months

17. The Tenure of Guarantee Cover where working capital facilities alone are extended is ________years. a) c)

2 4

b) d)

3 5

18. Where both term loan & working capital is covered under the guarantee, the tenure of Guarantee Cover for working capital will be a) c)

3 years 4 years

b) d)

co-terminus with the tenure of TL 5 years 156


19. When a borrower is covered under Credit Guarantee Fund Trust, collateral security will be taken as______% of the loan amount. a) c)

50 Nil

b) d)

75 33

20. Guarantee fee will be absorbed by bank for the credit facility limit upto _____ a) c)

2 lacs 10 lacs

b) d)

5 lacs Fee to be recovered from all borrowers

KEY TO ASSIGNMENT CGTMSE

1 b 11 a

2 d 12 b

3 c 13 d

4 c 14 c

5 d 15 a

6 d 16 c

7 b 17 d

8 d 18 b

9 c 19 c

10 c 20 a

157


TRADERS EASY LOAN 1. The target group is:______________ a. b. c. d.

for

finance

under

Traders

Easy

Loan

Scheme

Wholesale/Retail traders and Small Business Enterprises Professional and self-employed Commission Agents All of above

2. Which type of facility can be granted under Traders Easy Loan Scheme? a) Cash Credit c) Demand Loan

b) d)

Term Loan All of above

3. Under Traders Easy Loan, a borrower can be granted loan for a minimum amount of Rs. ____lacs and maximum amount of Rs. _____lacs a) 0.25, 500 c) 0.75, 500

b) d)

0.50, 500 1.0, 500

4. Under Traders Easy Loan, a Rice Miller can be granted minimum loan for a Rs. ____lacs a) 5 c) 20

b) d)

10 25

5. Under Traders Easy Loan Scheme, units can be financed upto ____% of the business needs or _________% of realizable value of property, within the over limit of Rs 500 lacs to meet capital expenditure and when sanctioned as TL/DL. a) 90, 65, c) 75, 75

b) d)

75, 65 75, 60

6. Under Traders Easy Loan Scheme, units can be financed upto ____% of the Projected Turnover of the borrower or _________% of realizable value of property, within the over limit of Rs 500 lacs, when sanctioned as Cash Credit. a) 50, 65, c) 25, 75

b) d)

20, 60 20, 65

158

STATE BANK LEARNING CENTER, PANCHKULA 7. Under Traders Easy Loan Scheme, Rice Mill units can be financed upto ____% of the Projected Turnover of the borrower or 65% of realizable value of property, within the over limit of Rs 500 lacs and when sanctioned as Cash Credit. a) 20-50 c) 20-40

b) d)

25-30 15-25

8. Under Traders Easy Loan Scheme, Working Capital limit may be availed partly as CC and partly as Demand Loan but the total limit will be arrived at on the basis of ___________ a) actual requirement c) Working Cycle Method

b) Traditional Method d) Nayak Committee recommendations

9. Under Traders Easy Loan Scheme, TL is repayable in a period of______ Months in monthly, quarterly, half yearly basis depending upon the cash flows. a) 50 c) 60

b) d)

84 48

10. Under Traders Easy Loan Scheme, DL is repayable in a period of______ months in monthly, quarterly, half yearly basis depending upon the cash flows. a) 50 c) 60

b) d)

84 36

11. The borrowers who have already been sanctioned certain limits against mortgage of property under Mortgage Loan can be extended Traders Easy Loan against the residual value of the same property a. Without any rider b. Provided the account is conducted satisfactorily for over 3 years c. Loan already availed and the proposed loan is within 65% of the realizable value of property d. Both (b) & (c) 12. In case of Traders Easy loan, the collateral security in the form of Equitable Mortgage of Land & Building for a minimum of ____% of loan amount will be taken and that should not be open plot within our outside the municipal area a) 133 b) 143 c) 153 d) 163 13. Valuation of the property taken as collateral security for Traders Easy Loan should be obtained once in ___years a) 2 c) 4

b) d)

3 5 159


14. Encumbrance Certificate pertaining to the property taken as collateral security for Mortgage Loan to Traders should be taken once in ___months a) 12 c) 36

b) d)

24 48

15. At the time of sanction of Traders Easy Loan, stock statement will be obtained. Additionally, it has to be obtained at ______intervals other than Demand Loan or Term Loan a) Monthly c) Half-yearly

b) d)

Quarterly Yearly (28th Feb)

16. After disbursal of Traders Easy Loan, inspection will be carried out at ________intervals a) Yearly, c) Quarterly,

b) d)

Half-yearly, Monthly,

17. Credit summations in the account should be atleast ________% of the CC limit in the account under Traders Easy Loan Scheme. a) 100 c) 50

b) d)

200 75

18. Working Capital credit facilities sanctioned under TEL scheme would be valid for a period of ______ years a) 1 c) 3

b) d)

2 5

19. At the time of renewal / annual review of the account, if the limits are assessed to be less than the existing limits, and the borrower is not in a position to repay the excess amount in 90 days, the excess amount would be carved out as a demand loan and may be allowed to be repaid within a maximum of 24 monthly installments a) 30, 12 c) 90, 24

b) d)

60, 18 90, 36

20 The account will be subject to _________l review. The review will be based mainly on conduct of account. The ______ would be the reviewing authority. a) Half yearly, RMME/ F.O. c) Yearly, RMME/ F.O

b) d)

Half yearly, Branch Manager Yearly, Branch Manager 160


KEY TO ASSIGNMENT TRADERS EASY LOAN 1 d 11 d

2 d 12 c

3 a 13 b

4 a 14 a

5 b 15 b

6 d 16 c

7 c 17 b

8 d 18 b

9 c 19 c

10 d 20 d

161


ASSIGNMENT Doctor Plus 1

Target group for Doctor Plus Scheme is _______ a) b) c) d)

2

Medical practitioners of any discipline, Promoters of hospitals and nursing homes Pathological clinics, Poly clinics and X Ray labs etc. All of above

In the scoring model meant for Doctor Plus Scheme for a loan limit upto Rs. 25 lacs, a borrower should get minimum score of ________. a) 40 c) 60

3

50 70

Who are eligible to avail credit facility under Doctor Plus Scheme? a) Individuals c) Corporates/Trusts

4

b) d)

b) d)

Partnership Firms All of above

Credit facility under Doctor Plus Scheme can be granted for _____ a) Buying Equipment b) Setting up of clinic/nursing home/poly-clinic/path. Lab/X-ray lab/drug store/purchase of vehicle/computer etc. c) Expansion/Renovation of clinic and dispensary etc. d) Any of above

5

Which type of credit facility can be granted under Doctor Plus Scheme? a) Cash Credit c) Both (a) & (b)

6

MTL Demand Loan

In metro/ urban areas corporate/ partnership borrower can be sanctioned maximum loan of Rs. ___lacs for Allopathic clinics under Doctor Plus Scheme. a) 250 c) 750

7

b) d)

b) d)

500 1000

In other areas corporate/ partnership borrower can be sanctioned maximum loan of Rs. ___lacs for Allopathic clinics under Doctor Plus Scheme. a) 250 c) 750

b) d)

500 1000 162


8

Individual borrower can be sanctioned maximum loan of Rs. ___lacs for Allopathic clinics under Doctor Plus Scheme. a) 250 c) 750

9

b) d)

b) d)

5 years excluding moratorium 7 years excluding moratorium

b) d)

5 years excluding moratorium 7 years excluding moratorium

Moratorium under Doctor Plus Scheme can be granted for a period of ____months a) 3 c) 12

14

b) d)

The maximum repayment period under Doctor Plus Scheme for setting up clinic, nursing home, pathology lab is ___________ a) 5 years including moratorium c) 7 years including moratorium

13

20 & 10 20 & 5

The maximum repayment period under Doctor Plus Scheme for buying equipments and expansion/renovation in existing premises is ___________ a) 5 years including moratorium c) 7 years including moratorium

12

10, 10 5 ,10

Borrower can be sanctioned maximum loan of Rs. ___lacs for Non Allopathic clinics under Doctor Plus Scheme of which a sub ceiling of working capital limit is at ______% of total loan amount. a) 10 & 10 c) 50 & 10

11

500 1000

Under Doctor Plus Scheme for Allopatic doctor , a sub ceiling of working capital limit is at ______% of total loan amount for upto Rs. 1.00 crore and ____% for above Rs. 1.00 crore a) 15, 10 c) 10, 5

10

b) d)

b) d)

6 24

Dr. Shashi Puri, M.D. has approached our bank for credit facility to set up a clinic to the tune of Rs. 15 lacs under Doctor Plus Scheme to set up a clinic. The loan will be collaterally secured by__________ a) Moveable Assets c) Third Party Guarantee

b) d)

Immovable Property Covered under CGTMSE

163


The units financed under Doctor Plus Scheme should be inspected at ____intervals. a) Monthly c) Half-Yearly

16

10 20

5 15

b) d)

10 20

25 15

b) d)

10 20

Minimum DSCR required under Doctor Plus is ___ a) c)

20.

b) d)

Margin required under Doctor Plus above Rs. 5 crores is ___% a) c)

19.

5 15

Margin required under Doctor Plus above Rs. 10 lacs & upto Rs. 5 crores is ___% a) c)

18.

Quarterly Yearly

Margin required under Doctor Plus upto Rs. 10 lacs is ___% a) c)

17

b) d)

1.50:1 1.70:1

b) d)

1.60:1 1.75:1

For loan of Rs. 25,000/- & above minimum rating required under Doctor Plus is a) c)

SB5 SB7

b) d)

SB6 SB8

KEY TO ASSIGNMENT Doctor Plus 1 d 11 a

2 a 12 c

3 d 13 c

4 d 14 d

5 c 15 c

6 d 16 c

7 b 17 d

8 b 18 a

9 c 19 a

10 a 20 d

164

STATE BANK LEARNING CENTER, PANCHKULA ASSIGNMENT Transport Plus 1

Transport Plus scheme is for financing of fleet operators owning more than _______ vehicles a) c)

2

8 25

New Both (a) & (b)

b) d)

Old None of above

Credit facility under Transport Plus Scheme can be sanctioned to those transport operators owning more than ______vehicles (including the proposed) a) c)

4

b) d)

Under Transport Plus Scheme, which type of transport vehicles can be financed? a) c)

3

6 10

5 15 well maintained

b) d)

10 well maintained No limit

A borrower can be sanctioned _________facility under Transport Plus Scheme a) c)

Cash Credit Demand Loan

b) d)

Term Loan Both (a) & (b)

5 The borrower desirous of availing the credit facility under Transport Plus Scheme should have _______ a)

CEO/Promoter age >18 years, should be IT assessee with 3 lacs income b) 3 yrs experience in field with valid permit & satisfactory dealing with bank c) Reputed & IBA approved TO(truck) with well maintained >10 vehicle rising trend in income-profit in 2yr with profit of at least Rs. 3 lacs in the past 2 years. d) All of the above 6

Eligible amount of finance under Transport Plus Scheme is inclusive of: a) b) c) d)

Billing price of the vehicle Cost of body building Road Tax & Insurance All of the above 165


7

The Corporates can be sanctioned maximum CC & Term Loan Rs. ______lacs & Rs. _______Crores respectively under Transport Plus Scheme a) c)

8

10.0, 10.0 No limit

3 7

b) d)

5 8

2 3

b) d)

4 5

1.00 1.33

b) d)

1.25 1.50

While analyzing the balance sheet of a unit for loan under Transport Plus Scheme, the TOL/TNW ratio should not exceed ____ a) c)

13

b) d)

Under Transport Plus Scheme, minimum Current Ratio should be ____ a) c)

12

10, 7.5 15, 15.0

The repayment of Term Loan under Transport Plus Scheme will start after____ months of the first disbursement and PDC to be obtained for entire repayment period a) c)

11

10.0, 10.0 No limit

Term Loan sanctioned under Transport Plus Scheme will be repaid (in EMIs) in maximum of ______years a) c)

10

b) d)

Non-Corporate can be sanctioned maximum CC & Term Loan Rs. ______lacs & Rs. _______crores respectively under Transport Plus Scheme a) c)

9

10, 7.5 15, 15.0

2.00 2.50

b) d)

2.25 2.75

Minimum Average gross DSCR under Transport Plus Scheme should be___ a) c)

1 3

b) d)

2 4

166


For advances under Transport Plus Scheme, promoters should contribute minimum ____% of the project cost, which can be reduced to ____% if 100% tie up. a) c)

15

b) c) d)

b) d)

75 25

100 50

b) d)

75 waived

1 3

b) d)

4 5

Periodicity of Inspection under Transport Plus Scheme is _____ in a year a) b)

20

100 50

Receivable level under Transport Plus Scheme should not be more than ____months a) c)

19

Value of orders in hand should be at least 30% of targeted annual income. Sales/Turnover: increasing trend in the last two years. The firm should be earning profits in the last two years with rising trend. All of above

If 100% tie-up arrangements are in place under Transport Plus Scheme, the value of collateral security can be reduced to ___% of the loan amount a) c)

18

10, 5 20, 10

Collateral security in the form of unencumbered vehicles/immovable property under Transport Plus Scheme will be obtained for not less than ___% of the loan amount a) c)

17

b) d)

Which of the following is correct in respect of the borrowers availing credit facilities under Transport Plus Scheme a)

16

5, Nil 15, 10

Twice Thrice

b) d)

Once Quarterly

Loan to be immediately recalled and legal action to be initiated if ______months installments are in default. a) c)

three six

b) d)

four no such instructions 167


KEY TO ASSIGNMENT Transport Plus 1 C 11 C

2 a 12 d

3 b 13 b

4 d 14 d

5 e 15 d

6 d 16 d

7 b 17 d

8 a 18 b

9 b 19 b

10 c 20 a

168


ASSIGNMENT Open Term Loan 1

SBI has launched Open Term Loan scheme for the a) Service Unit c) Trading Unit

2

b) d)

250 450

Under Open Term Loan Scheme, maximum loan to the tune of Rs. _____lac can be sanctioned for business development expenditure incurred for creation of intangible assets a) 50 c) 150

4

Manufacturing Unit Both (a) & (b)

Under Open Term Loan Scheme, maximum loan to the tune of Rs. _____lac can be sanctioned a) 150 c) 350

3

b) d)

b) d)

100 200

Open Term Loan Scheme for service sector is not applicable to________ a) b) c) d)

Hotels & Hospitals Educational Institutions Corporate/non-Corporate with ratings above SB7 Fleet Operators having less then 25 vehicles

5

Under Open Term Loan Scheme for Service Sector, loan cannot be granted for a) Expansion, Modernization, Acquisition of hardware/software b) Substitution of high cost debts/high cost term debts of other banks/FIs c) Acquisition of ISO & other similar certifications d) Visits abroad for finalizing business deals, participating in promotion exercises etc. e) Manufacturing of Hand tools

6

If the limits are not utilized or only partially utilized within twelve months of sanction, it will be _______ a) renewed b) reviewed c) lapsed d) extended for further 12 months

169


Disbursement of Term Loan under Open Term Loan is on________ a) b) c) d)

8

demand by borrower Within the currency of sanction Subject to certain basic financial information All of the above

Interest applicable on Open Term Loan is ________ a) b) c) d)

9

as applicable to SIB advances Fixed rate of interest for fixed tenure Floating rate of interest As per credit rating of the borrower linked to Base Rate

Uniform margin at ________% is to be taken for Open term Loan a) b) c) d)

10

10 15 20 25

_____________will be taken as collateral security on Open Term Loan a) Extension of charge over current assets, fixed assets or exploring additional tangible security b) Personal guarantees of proprietors/partners/promoters c) Pledge of promoter’s equity in case of corporate d) All of the above as applicable on case-to-case basis.

11

Authroised branches for Open Term Loan are a) SME intensive branches having RMME/SE c) Branches headed by Scale IV & above

12

b) All branches d) Both (a) & (c)

Repayment period generally not to exceed _______years. Sanctioning authority may selectively consider repayment period up to _______ years where considered necessary. a) 3 & 5 c) 4 & 6

13 a) b) c) d)

b) d)

4&5 5&7

The period of repayment, will commence from the date of Each Disbursement The first drawdown for each facility. Both of above None of above 170


14

Under SME Open Term Loan customer has the option of ______disbursements for multiple purposes within 12 months from the date of sanction. a) 5 c) 12

15

b) d)

7 multiple

Documents for the open Term Loan are to be optained a)

At the time of each disbursement

b) Upfront for the sanctioned loan

KEY TO ASSIGNMENT Open Term Loan

1 d 9 a

2 b 10 d

3 b 11 d

4 d 12 a

5 e 13 b

6 c 14 d

7 d 15 b

8 d

171


ASSIGNMENT Rent Plus 1

Owners of residential buildings and commercial properties situated in________which are to be rented or already rented to MNC/Banks/Large & Medium size Corporates are eligible under Rent Plus. a) Metro c) Rural

2

b) d)

Corporate All of above

Not to be rented Already rented to MNC/Banks/Large & Medium size Corporates Yet to be rented to MNC/Banks/Large & Medium size Corporates Both (b) & (c)

Apart from the specified lessees in the Rent Plus Scheme, powers for considering the proposal pertaining to other type of lessees are vested with __ a) AGM (RACPC) c) GM – Network

6

AGM Region GM Network

Rent Plus Scheme is targeted as per the eligibility criteria for those properties which are a) b) c) d)

5

b) d)

Who are eligible to avail credit facility under Rent Plus Scheme? a) Individuals c) Partnership Firm

4

Urban a, b & c

Owners of residential buildings and commercial properties situated in rural area are eligible under Rent Plus subject to prior administrative approval of _________. a) Branch Manager c) DGM (O& C)

3

b) d)

b) d)

AGM (SMECC) DGM

Administrative clearance for extending credit facilities under Rent Plus Scheme is required from ______at Branches having incumbency upto OMMGS-III a) AGM Region c) GM – Network

b) d)

DGM – Module No need

172


What is the minimum amount of finance available under Rent Plus Scheme? a) Rs. 50,000 c) Rs. 2,00,000

8

b) d)

b) d)

70 75

b) d)

Service Tax, TDS All of the above

Which type of credit facility will be sanctioned under Rent Plus Scheme? a) Cash Credit c) Overdraft

13.

75, 75 95, 95

While computing quantum of finance, which item is deducted from the rent receivable? a) advance deposit c) Estimated property tax, Statutory dues

12.

5.00 7.00

Discretion to allow finance upto___________of total rent receivable or relizable value of the property is vested with the CGM of the Circle. a) 85 c) 65

11

b) d)

The maximum amount of finance under Rent Plus Scheme is restricted to least of _____% of the total rent receivable for the residual lease period or _____% of realizable value of the property mortgaged as per latest valuation report a) 85, 85 c) 60, 60

10

Rs. 1,00,000 Rs. 5,00,000

Maximum amount to the tune of Rs. ____crore can be financed under Rent Plus Scheme. a) 2.00 c) 10.00

9

b) d)

b) d)

Term Loan CTL

The loan under Rent Plus Scheme will be repaid in equated instalments at the same frequency at which rent is received in a maximum period of ____years or the residual lease period, whichever is less a) 3 c) 7

b) d)

5 9

173


14.

The prepayment penalty under Rent Plus Scheme is______% a) 0.5 c) Nil

15

b) d)

Quarterly Yearly

Assignment of Rent Receivables Hypothecation of Receivables Recording of power of attorney with the lessee Both (a) & (c)

The collateral security in case of Rent Plus Scheme will be first charge on property rented out or any other acceptable property of a value not less than ____% of the loan amount a) 100 c) 120

19

6 12

What will be the primary security in case of Rent Plus Scheme? a) b) c) d)

18

b) d)

The periodicity of inspection by Field Officer for the loans sanctioned under Rent Plus Scheme is at ______intervals a) Monthly c) Half-yearly

17

2 1

A loan sanctioned under Rent Plus Scheme will be recalled if the account remains irregular for _____consecutive months a) 3 c) 9

16

b) d)

b) d)

110 130

Before accepting Equitable Mortgage of the property as collateral security, cognizance should be given to ______ a) b) c) d)

Genuineness of Title Deed Valuation Report from Bank’s approved valuer Search Report-cum-Title Verification Report from Bank’s approved lawyer All of above

174


Where our Bank is the tenant & loan amount does not exceed Rs. _______lacs, Sanctioning Authority may waive the stipulation of equitable mortgage subject to condition that the lease deed should not expire during the currency of the loan. a) 10 b) 30

21

b) d)

In addition to the Collateral Security, __________of partners/directors to be obtained in case of Partnership firm/Company a) Surety c) Personal Guarantee

22

b) d)

Guarantee no need of any other security

In case of public limited companies, if the directors are not willing to extend personal guarantee and the collateral in the form of equitable mortgage is _____% of the loan amount, the sanctioning authority may waive personal guarantee. a) 100 c) 200

23

20 25

b) d)

50 120

Waiver of equitable mortgage may be allowed by CCC-I, provided the lessee is a) b) c) d)

Reputed Corporate e.g Bank/PSU maintaining consistency in profitability for at least 3 years Agreeable to execute the tripartite agreement Integrity is beyond doubt & Personal guarantee of individuals/ partners/directors is available All of the above KEY TO ASSIGNMENT Rent Plus

1 d 11 d 21 c

2 d 12 b 22 d

3 d 13 c 23 d

4 d 14 d

5 c 15 a

6 a 16 c

7 a 17 d

8 c 18 c

9 c 19 d

10 b 20 d

175


ASSIGNMENT School Plus & Loan to Pvt. Builders 1

Under School Plus Scheme, which of followings are eligible to avail credit facility a) Govt. Aided Schools and Private Schools/colleges b) Schools run by trusts of good standing c) Technical institutes recognized by AICTE/NBA/MCI d) All of the above

2

The purpose for which, loan can be granted under School Plus Scheme is ____ a) Purchase of land for building/play ground, Construction/repair/renovation of school building b) Purchase of computer/equipments/books etc. c) Purchase of furniture/fixtures d) All of above

3

For which of the following purposes, loan cannot be granted under School-Plus Scheme a) b) c) d)

4

For Purchase of Laboratory/sports equipment For Purchase of equipment for mid day meal scheme For Purchase of buses for student transportation None of above

Which type of credit facility can be granted under School Plus Scheme? a) Cash Credit c) Both (a) & (b)

5

Term Loan Overdraft

Under School Plus Scheme, maximum loan to the tune of Rs. _____lac can be granted a) 10 c) 25

6

b) d)

b) d)

20 No Cap

DSCR under School Plus Scheme should not be below ______ a) 1.25 c) 1.75

b) d)

1.50 2.00

176


7

Loan under School Plus Scheme should normally be repaid in ___to ____EMIs depending upon the quantum of the loan a) 36, 60 c) 36, 96

8

15 25

b) d)

30 75

b) d)

18, 24 30, 36

Which type of credit facility can be granted to private builders for completion of their project a) Cash Credit c) Term Loan

13

b) d)

Private Builders can be granted finance provided their project should be completed in _____to ____months a) 12, 18 c) 24, 30

12

Floating rate of interest None of above

Collateral security of land and building and other immovable assets of the school or guarantor for ___% of the loan amount for loans of Rs. 2 lacs to Rs. 10 lacs and EM of other immovable assets for loans above Rs. 10 lacs will be taken under School Plus Scheme a) 50 c) 20

11

b) d)

A borrower has to bring a minimum of ___% as margin to avail credit facility under School Plus Scheme a) 10 c) 20

10

36, 84 36, 120

The loan under School Plus Scheme will be granted at _____ a) Fixed Rate of interest Only c) Either of (a) or (b)

9

b) d)

b) d)

Overdraft CTL

M/s Shivalika Builders has approached our bank for finance. maximum loan amount that can be granted to them

What is the

a) 50% of project cost or 5 times of his net worth or Rs. 5 crore, whichever is less b) 60% of project cost or 6 times of his net worth or Rs. 5 crore, whichever is less

177

STATE BANK LEARNING CENTER, PANCHKULA c) 70% of project cost or 7 times of his net worth or Rs. 5 crore, whichever is less d) 80% of project cost or 8 times of his net worth or Rs.5 crore, whichever is less 14

Under Finance to Private Builder Scheme, the loan is to be repaid in maximum of ____months a) 12 c) 36

15

b) d)

24 60

Minimum margin required for loan to private builder is ____% of the project cost a) 10 c) 25

b) d)

15 50

KEY TO ASSIGNMENT School Plus & Loan to Pvt. Builders

1 d 11 b

2 d 12 a

3 d 13 a

4 b 14 c

5 d 15 d

6 d

7 b

8 a

9 b

10 c

178


ASSIGNMENT Construction Equipment Loan-JCB India 1. Construction Equipment Loan Scheme has been launched for purchase a) b) c) d) e)

Machinery Stock of Raw Material purchase of construction Equipment manufactured by JCB Receivable

Which type of equipment is covered under Construction Equipment Loan Scheme? a) b) c) d)

f)

of:

Loader Excavators Cranes All of above

Who are eligible under Construction Equipment Loan Scheme? a) b) c) d)

Individual Firms Companies All of above

4. Construction Equipment Loan will not be granted to borrowers having Credit Rating below: a) c)

SB 6 SB 9

b) d)

SB 8 no such stipulation

5. Credit Rating is not required for advance below Rs.____lacs. a) c)

50 10

b) d)

25 no such stipulation

6. Which type of credit facility can be provided under Construction Equipment Loan Scheme? a) Demand loan c) Term Loan

b) d)

Cash Credit Working Capital Demand Loan

179

STATE BANK LEARNING CENTER, PANCHKULA 7. What is the minimum quantum of advance that can be provided under Construction Equipment Loan Scheme? a) Rs. 5.00 lacs c) Rs. 15.00 lacs

b) d)


8. What is the maximum quantum of advance that can be provided under Construction Equipment Loan Scheme? a) Rs. 10.00 lacs c) Rs. 150.00 lacs

b) d)


9. Disbursement of advance under Construction Equipment Loan Scheme will be by___ a) b) c) d)

Credit to SB account of the borrower Credit to Current account of the borrower ECS direct to supplier/dealer

10. Moratorium period allowed under Construction Equipment Loan Scheme is___months a) 3 c) 12

b) d)

6 9

11. Term Loan granted under Construction Equipment Loan Scheme is to be repaid in ____ a) Quarterly instalments + Intt c) EMI

b) d)

lumpsum Monthly instalment + intt.

12. Term Loan upto _________lacs granted under Construction Equipment Loan Scheme is to mandatorily covered undet CGTMSE a) b) c) d)

20 25 30 50

13. Term Loan granted under Construction Equipment Loan Scheme is to be fully repaid within ____years including moratorium period a) 3 c) 4

b) d)

9 5

180

STATE BANK LEARNING CENTER, PANCHKULA 14. Borrower is required to contribute Margin of _____% Equipment Loan Scheme,

under Construction

a) 25% in case of borrowers who are new to this line b) 15% in case of buyers having up to 9 machines c) 5% in case of buyers already having more than 9 machines d) either a or b or c whichever is applicable 15. Rate of interest applicable for credit facility granted under Construction Equipment Loan Scheme is: a) b) c) d)

4.25% above Base Rate for borrower with Credit Rating of SB1 to SB5 4.75% above Base Rate for borrower with Credit Rating of SB6 to SB9 4.75% above Base Rate for borrower which are not subject to rating either a or b or c whichever is applicable

16. ___% penalty will be charged for the amount and period in default under Construction Equipment Loan Scheme is: a) 3 c) 2

b) d)

1 no penalty

17. Which type of Primary Security will be taken by the bank in case of Construction Equipment Loan Scheme? a) b) c) d)

Hypothecation of Equipment financed from the Bank Loan Registration of charges with ROC ( In case of vehicles) No such requirement a&b

18. Which type of Collateral Security will be taken by the bank in case of Construction Equipment Loan Scheme? a) b) c) d)

Hyp. of other unencumbered equipments EM of immoveable property a or b to the extent of atleast 25% of the loan amount Not to be insisted upon

19. Inspection will be done at______interals for ensuring end use of fund of Construction Equipment Loan a) monthly c) quarterly

b) d)

half yearly yearly

181

STATE BANK LEARNING CENTER, PANCHKULA 20. ______type of Insurance will be obtained in case advance granted under Construction Equipment Loan a) Fire c) Comprehensive

b) d)

Theft not required

KEY TO ASSIGNMENT CONSTRUCTION EQUIPMENT LOAN

1 c 11 c

2 d 12 b

3 d 13 c

4 c 14 d

5 b 15 d

6 c 16 c

7 c 17 d

8 d 18 c

9 d 19 b

10 a 20 c

182

STATE BANK LEARNING CENTER, PANCHKULA SBI Shoppe, SBI Shoppe Plus & Arthia Plus 1 Under SBI Shoppe Scheme, present and prospective owners of __________can be granted credit facility a) c)

Shops/Offices/Show-rooms C.A/Consultants

b) Training/Service/Garage Centre d) All of above

2 Who are eligible to avail credit facility under SBI Shoppe Scheme? a) Individuals/Partnership c) Franchisees

b) d)

Trusts All of above

3 Which type of credit facility will be granted under SBI Shoppe Scheme? a) Demand Loan c) Term Loan

b) d)

Cash Credit All of above

4 Loan under SBI Shoppe can be granted for __________ a. b. c. d.

Purchase of new/old shops/establishment/offices/showroom etc. Repair/Renovation/Modernisation Furniture/Fixtures/Electrical fittings/Accessories for the shop/office etc. All of above

5 What is the maximum quantum of finance that can be sanctioned under SBI Shoppe? a) Rs. 5.00 lacs c) Rs. 15.00 lacs

b) d)


6 What is the moratorium period provided in case of Term Loan facility under SBI Shoppe? a) 6 months c) 12 months

b) d)

9 months 18 months

7 Term Loan sanctioned under SBI Shoppe should be repaid in _______years a) 3 to 5 c) 5 to 7

b) d)

3 to 7 7 to 9

8 In case of loan sanctioned under SBI Shoppe, minimum DSCR should be ____ a) 1.00 c) 1.50

b) d)

1.25 1.75 183

STATE BANK LEARNING CENTER, PANCHKULA 9 In case of the rented property, which document in addition to other documents should be obtained, while granting loan under SBI Shoppe? a) AB 3 c) No lien letter

b) d)

No objection Certificate Both (b) and (c)

10 SBI Shoppe Plus Scheme is the combination of _______________ a) SBI Shoppe & H/ loan c) SBI Shoppe & P/Loan

b) d)

SBI Shoppe & Car loan SBI Shoppe & Edu. Loan

11 Target group for SBI Shoppe Plus Scheme is present and prospective owners of a. Shops/offices/show rooms b) c) Offices for CA/Consultants d)

Training Centres/Garages All of above

12 Which type of credit facilities will be granted under SBI Shoppe Plus Scheme? a) 2 Cash Credit c) 1 C/C and 1 T/L

b) d)

2 Term Loans 2 Demand Loans

13 Commission Agents (Arthias) __________can be financed under Arthias Plus Scheme? a) Dealing with Agr. Produce b) Regd. with Market Committee c) Possess a license from DFSD d) All of above 14 Borrowers will be financed against __________ under Arthia Plus a) Stock c) Both (a) and (b)

b) d)

Receivables None of above

15 Which type of credit facility can be granted under Arthia Plus Scheme? a) Cash Credit (Hyp. of Book Debts) c) Demand Loan

b) d)

Term Loan CTL

16 What is the maximum amount that can be financed under Arthia Plus Scheme? a) Rs. 10.00 lacs c) Rs. 20.00 lacs

b) d)


17 The margin required under Arthias Plus is_________% a) 25 c) 40

b) d)

20 10 184


18 Collateral Security for loan amount upto Rs. 25 lacs under Arthias Plus Scheme will be equitable mortgage of Residential/Commercial property with worth _____times of the loan amount a) 1 c) 3

b) d)

2 1.5

19 Collateral Security for loan amount above Rs. 25 lacs under Arthias Plus Scheme will be equitable mortgage of Residential/Commercial property with worth _____times of the loan amount a) 1 c) 3

b) d)

2 1.5

20 Assessment under Arthias Plus for loan amount above Rs. 25 lacs & upto Rs. 50 lacs will be as per_________ a) Traditional method c) CRA Model

b) d)

Scoring Sheet Need based

21 The repayment of credit facility sanctioned under Arthias Plus Scheme, will be within ______months a) 3 c) 9

b) d)

6 12

KEY TO ASSIGNMENT SBI Shoppe, SBI Shoppe Plus & Arthia Plus 1 d 11 d

2 d 12 b

3 c 13 d

4 d 14 b

5 d 15 a

6 a 16 d

7 b 17 c

8 d 18 d

9 d 19 b

10 a 20 c

21 b

185

STATE BANK LEARNING CENTER, PANCHKULA ASSIGNMENT SME Car Loan 1. Car loan can be granted to _______under Car Loan Scheme to SME units a) b) c) d)

Unit/Promoters/Partners/Senior Executive Family Members (Spouse & Children) of Promoters/Partners Unit SME CA holder of Bank, other SME Clients subject to advising the sanction to the Bank in which they are having a loan account. e) Any of (a) ,(b) (c) & (d) individually or jointly with unit 2 For availing car loan under Car Loan to SME Units, an individual/joint applicant should have a minimum NAI of Rs. ______ a) 75,000 c) 1,25,000

b) d)

1,00,000 1,50,000

3. If the car loan to SME unit is availed in the name of the Unit_______will guarantee the repayment of loan a) b) c) d)

Company Promoter(s) Partner(s) All of the above as applicable

4. Whenever Senior Executive joins as _________ his NAI shall be clubbed with the ______of joint applicant )Promoter/Partner a) b) c) d)

applicant & EMI borrower & NMI co-applicant & NMI cannot be granted to Senior Executive

5. Senior Executive under Car Loan to SME Units is defined as employee in ____ a) b) c) d)

Top Management Directors Employee holding the position of responsibility Any of the above

186

STATE BANK LEARNING CENTER, PANCHKULA 6. For purchasing a new car, loan can be sanctioned for a maximum of ____times of NAI of the borrower under Car Loan to SME Units a) 1.5 c) 3.5

b) d)

2.5 4.5

7. Margin under Car Loan to SME Units is __________% of the “ on road price” of the vehicle a) b) c) d)

10 20 5 15

8. Under Car Loan to SME Units, a maximum loan of Rs. ____ lacs can be sanctioned for purchase of new vehicle a) 10 c) 20

b) d)

15 No upper limit

9. For sanctioning a car loan under Car Loan to SME Units, EMI/NMI percentage should not exceed ______% and authority vest with the rank of AGM to relax it upto______% a) b) c) d) 10.

& 50 & 50 & 65 & 60

Processing fee charged under Car Loan to SME units is _____% subject to minimum Rs._________ & maximum Rs.____________ a) b) c) d)

11.

60 40 50 50

0.55, 1000/- & 50,000/0.50, 500/- & 10,000/0.55, 1000/- & 10,000/Nil

Under SME Car Loan inspection in regular account is to be undertaken on ______basis a) b) c) d)

monthly quarterly half yearly waived

187


For purchase of a new car under Car Loan to SME Units, loan sanctioned will be repaid in _____years a) 5 c) 8

13.

2 5

b) d)

2 5

b) d)

15 25

The vehicle purchased under Car Loan to SME Units is to be kept comprehensively insured for the market value or at least _______% above the loan amount a) b) c) d)

18.

b) d)

Under Car Loan to SME Units, a maximum loan of Rs. ____ lac can be sanctioned for purchase of used vehicles a) 10 c) 20

17.

2 5

Pre payment penalty will be charged @ ___% of the loan prepaid in case of Car Loan to SME Units. a) 1 c) 3

16.

b) d)

If an account remains irregular beyond a period of 30 days, a penal interest @ ___% p.m. over and above the applicable rate will be charged under Car Loan to SME Units. a) 1 c) 3

15.

7 10

As an evidence of income, copy of income tax return for the last ____financial year(s) should be taken before sanctioning a loan under Car Loan to SME Units. a) 1 c) 3

14.

b) d)

110 100 120 10

Loan on fixed rate of interest under Car Loan to SME Units, will be sanctioned for amount exceeding Rs _____lacs. a) 5 c) 15

b) d)

10 Not to be sanctioned 188


19.

Reimbursement of unencumbered vehicle not > than ________ can be done in case of Car Loan to SME Units. a) b) c) d)

20.

5 years 2 years 7 years 1 year

Car Loan to those SME Units ___________ should be restricted. a) b) c) d)

which are weak or have turned NPA or likely to become NPA The relations between branches & promoter(s) is soured Wherever it is proposed to initiate legal action against the unit/promoters All of the above

KEY TO ASSIGNMENT SME Car Loan

1 e 11 d

2 b 12 b

3 d 13 b

4 c 14 a

5 d 15 b

6 b 16 b

7 d 17 d

8 d 18 d

9 d 19 b

10 b 20 d

189


ASSIGNMENT Rice Mill Plus & Dall Mill Plus 1

Existing Profit making rice shellers with CRA rating of _____and above can be covered under Rice Mills Plus Scheme a) c)

2

Modernisation of building All of above

C/C, T/L & Bill limit SME Credit Plus

b) d)

L/C & B/G All of above

Rs. 1.00 crore Rs. 10.00 crore

b) d)

Rs. 5.00 crore No upper limit

6 12

b) d)

9 18

Term Loan sanctioned under Rice Mills Plus Scheme will be repaid in ____years excluding the moratorium period a) c)

7

b) d)

A moratorium of _____months can be granted in case a borrower is sanctioned Term Loan under Rice Mills Plus Scheme? a) c)

6

Machinery Working capital needs

How much advance can be granted under Rice Mills Plus Scheme? a) c)

5

SB 6 SB 9

Which type of credit facilities can be provided under Rice Mills Plus Scheme? a) c)

4

b) d)

Credit facilities under Rice Mills Plus Scheme can be provided for _________ a) c)

3

SB 4 SB 8

5-7 7-9

b) d)

5-10 9-12

Under Rice-Mills Plus, which additional credit facilities can be provided to the borrowers a) b) c) d)

Cash Credit – Book Debts Limit against by-products and gunny bags Limit against other grains during lean period All of above

190


8

Rice Mills Plus Scheme has been extended to new units established by our existing borrowers where: a. Management of the new units lies with our existing borrowers b. At least 50% of the partners of new units are our existing borrowers & known to the bank. c. CRA rating of the unit is not below SB 7 d. All of above

9.

Under Rice Mills Plus for loans upto Rs. 5 lacs, collateral security will be taken as Equitable mortgage of property/tangible security belonging to borrower/guarantor valued not less that _________% of loan amount a) c)

10.

33% 75%

33% 75%

b) d)

50% 60%

b) d)

50% 60%

Units having CRA rating of _______ can be granted loan under Dal Mills Plus Scheme a) SB 4 and above c) SB 8 and above

13

50% Nil

Under Rice Mills Plus for loans over Rs. 5 lacs, and Unit having credit rating SB8 & below collateral security will be taken as Equitable mortgage of property/tangible security belonging to borrower/guarantor valued not less that _________% of loan amount a) c)

12

b) d)

Under Rice Mills Plus for loans over Rs. 5 lacs, and Unit having credit rating SB7 & above, collateral security will be taken as Equitable mortgage of property/tangible security belonging to borrower/guarantor valued not less that _________% of loan amount a) c)

11.

33% 75%

b) d)

SB 6 and above SB 9 and above

Credit facility under Dal Mills Plus Scheme can be granted for the purpose of: a) Machinery c) Working Capital

b) d)

Building All of above

191


14

Which type of credit facility can be granted under Dal Mills Plus Scheme? a) Term Loan & CC c) SME Credit Plus

15

b) d)

For Term Loan component under Dal Mills Plus Scheme, a moratorium of maximum _____months can be granted a) 6 c) 12

16

b) d)

b) d)

b) d)

Regular All of above

Under Dal Mills Plus Scheme, how much loan can be granted? a) Rs. 1.00 crore c) Rs. 3.00 crore

19

5 to 7 9 to 12

Which CRA model will be used for loan under Dal Mills Plus Scheme? a) Simplified c) Trade

18

9 18

Term Loan under Dal Mills Plus Scheme will be repaid in ______years excluding moratorium period a) 3 to 5 c) 7 to 9

17

L/C & BG All of above

b) d)

Rs. 2.00 crore No upper limit

Collateral Security under Dal Mill –Plus for loan upto Rs. 5 lacs is_____and above Rs. 5 lacs_________of the loan amount a) 10%, 50% c) nil, 80%

b) d)

20%, 80% nil, 75%

KEY TO ASSIGNMENT Rice Mill Plus & Dall Mill Plus 1 d 11 d

2 d 12 d

3 d 13 d

4 d 14 d

5 c 15 c

6 a 16 b

7 d 17 a

8 d 18 d

9 d 19 d

10 b

192


ASSIGNMENT Standby Line of Credit (Working Capital), Corporate Loan & Standby Line of Credit for Purchase of Vehicle 1

What is the target group for Standby Line of Credit (Working Capital) Scheme? a) c)

2

b) d)

SB 6 SB 8

15, 5 25, 5

b) d)

20, 5 30, 5

Cash Credit EPC bills discounting against stock, receivables etc All of the above

Which of the following statement is correct in respect of SLC (WC) a) b) c) d)

6

SB 5 SB 7

Which type of facility will be granted under SLC(WC) ? a) b) c) d)

5

Exporting unit All of above

A maximum of ____% of Fund Based and Non-Fund Based Limit or Rs. ____crore, whichever is lower, can be granted under SLC (WC) a) c)

4

b) d)

To become eligible for SLC (WC), the unit should have a minimum CRA rating of ________ a) c)

3

SSI units C & I Units

SLC(WC) should be calculated separately for peak and non peak limits Additional interest of 1% over the regular limit will be charged Discretion to waive the additional cost rests with the controllers All of above

Which amongst the following is not correct in respect of SLC (WC) a) b) c) d)

It will be granted generally for a period of 2 months at any instance SLC(WC) cannot be extended to units who have utilized SME Credit Plus facility It will be granted to meet contingency needs arising out bunching or orders, delay in shipment/realization of receivables, sudden increase in raw material costs, mismatch in cash flows None of above 193


Corporate Loan Scheme covers customers of the following sectors: a) c)

8

Agr C&I & SSI

b) d)

SBF Both (b) & (c)

The purposes for which Corporate Loan can be granted, are _________ a) c)

9

Repayment of High cost debt Shoring of NWC

b) Acquisition of Trade mark etc. d) All of above

Which type of credit facility will be provided under Corporate loan? a) c)

10

Clean Cash Credit Cash Credit

Corporate Trust/HUF

b) d)

Non-Corporate Both (a) & (b)

A minimum of Rs. ____lacs will be granted under Corporate Loan? a) c)

12

b) d)

Which type of borrowers are covered under Corporate Loan? a) c)

11

Clean Term Loan Term Loan

25 75

b) d)

50 100

A non-corporate borrower can be granted a maximum of Rs. _____crore under Corporate Loan Scheme a) c)

5 15

b) d)

10 25

13

How much amount can be financed under Corporate Loan Scheme to a corporate borrower? a) Rs. 10 crore b) Rs. 25 crore c) Rs. 100 crore d) No limit

14

Repayment period of the Term Loan granted under Corporate Loan Scheme will not exceed _______years a) 3 b) 5 c) 7 d) 9

15

For availing credit facility under Stand By Loan to Corporate for Purchase of Vehicles Scheme, the CRA rating of the unit should be ________and above a) SB-5 c) SB-7

b) d)

SB-6 SB-8 194


Which type of credit facility will be provided under Stand By Loan to Corporates for Purchase of Vehicles Scheme? a) Demand Loan c) Term Loan

17

b) d)

The borrower will be granted ____% of the fund based limit not exceeding Rs. ____lacs under Stand By Loan to Corporates for Purchase of Vehicles a) 10, 25 c) 10, 50

18

b) d)

b) d)

5 9

The loan under Stand By Loan to Corporates for Purchase of Vehicles will be granted for _____vehicles a) New c) Both (a) & (b)

20

10, 30 10, 100

The loan sanctioned under Stand By Loan to Corporates for Purchase of Vehicles will be repaid in ______years a) 3 c) 7

19

Short Term Loan CTL

b) d)

Old None of above

The margin under Stand By Loan to Corporates for Purchase of Vehicles is____% of the cost of the vehicle including tax and insurance a) 10 c) 20

b) d)

15 25

KEY TO ASSIGNMENT Standby Line of Credit (Working Capital), Corporate Loan & Standby Line of Credit for Purchase of Vehicle 1 D 11 A

2 c 12 b

3 a 13 d

4 d 14 a

5 d 15 c

6 d 16 c

7 c 17 a

8 d 18 b

9 a 19 a

10 d 20 c

195

STATE BANK LEARNING CENTER, PANCHKULA Paryatan Plus & Working Capital Finance for Trade & Services sector 1

Under Paryatan Plus, the credit facility can be sanctioned for ________ a) Construction/renovation/modernization/expansion to Hotels/Yatri Nivas /Dharmshalas/restaurants/coffeehouses /ice-cream parlours /amusement parks/ropeways/health clubs etc. b) Purchase of luxury buses/coaches/cars/vans etc. c) Purchase of house boats/luxury boats d) All of above

2

Which of the following are not eligible to avail the credit facility under Paryatan Plus Scheme? a) Individuals/Partnership c) Trust

3

T/L All of above

b) d)

Rs. 2 lacs No such limit

b) d)

5 40

____% Margin to be obtained for financing old vehicles under Paryatan Plus a) 10 c) 20

8

b) d)

____% Margin to be obtained for financing new vehicles under Paryatan Plus a) 10 c) 20

7

Travel/Tour operators All of above

Minimum amount to be financed under Paryatan Plus ? a) Rs. 1 lac c) Rs. 3 lacs

6

b) d)

Which type of credit facility can be granted under Paryatan Plus Scheme? a) C/C c) L/C & B/G

5

Corporates HUF

The target group for Paryatan Plus Scheme will be ________ a) Hospitality/Transportation c) Adventure/Religious tourism

4

b) d)

b) d)

5 40

Which of the following is incorrect regarding Paryatan Plus Scheme a) b)

Maintenance of C/A to route all receipt is mandatory Appropriate licenses should be obtained 196

STATE BANK LEARNING CENTER, PANCHKULA c) d) 9

In case of Term Loan sanctioned under Paryatan Plus Scheme, a start up period not exceeding ____months, can be granted a) 6 c) 18

10

13

b) d)

5 to 7 9 to 12

b) d)

1.75 2.25

We can provide credit facility for old vehicles less than ___years under Paryatan Plus Scheme a) 5 b) 6 c) 7 d) 8 Collateral security for a minimum of ___% of the loan amount in the form of immovable property or liquid security i.e. TDRs, NSCs and KVPs etc., will be taken for credit facilities under Paryatan Plus Scheme a) 50 c) 100

14

12 24

While sanctioning term loan for the purchase of vehicle under Paryatan Plus Scheme, minimum DSCR should be_____ a) 1.5 c) 2.0

12

b) d)

Term loan sanctioned under Paryatan Plus Scheme, will be repayable within ______years including start up period not exceeding 18 months a) 3 to 7 c) 7 to 9

11

Only skilled/trained persons eligible There is an upper ceiling of Rs. 7.50 crore for advance

b) d)

75 125

Which type of units showing profits during the last 3 year and having CRA rating of SB 4 and above can be granted working capital finance liberally under Trade & Service Sector? a) Retail & Wholesale traders in agricultural and industrial Commodities b) Dealers in consumer durables/consumer goods/vehicles c) Big land lords d) Both (a) & (b) above

197


15

Working capital under Trade & Services Sector can be granted ____% of Projected Annual Turnover (PAT) subject to a maximum of Rs. ____crore a) 10, 2 c) 20, 10

16

b) d)

While granting working capital finance under Trade & Services sector, it should be ensured that projected annual turnover should not be more than ____% of the last year turnover a) 10 c) 20

17

b) d)

b) d)

50 No security is required

Out of prescribed Collateral Security under working capital finance for Trade & Services sector_____% Collateral security will be taken as mortgage of immovable property a) 50 c) 33

19

15 25

While granting working capital finance under Trade & Services sector_____% Collateral security will be taken. a) 100 c) 20

18

15, 5 25, 15

b) d)

25 No such stipulation

M/s. Oriental Handloom Co., a trading unit, desirous of working capital limit with CRA rating of SB 8-9, has offered collateral security to the extent of 75% of the loan, how much concession in rate of interest over and above CRA rating, can be granted to the unit? a) 0.25% c) 0.75%

b) d)

0.50 1.0%

KEY TO ASSIGNMENT Paryatan Plus & Working Capital Finance for Trade & Services sector

1 d 11 a

2 d 12 a

3 d 13 a

4 d 14 d

5 b 15 b

6 c 16 d

7 d 17 b

8 d 18 c

9 c 19 b

10 a

198


ASSIGNMENT Flexi Loan for Trade & Service & General Purpose Term Loan for SSI 1

Borrowers with __________ are eligible to avail credit facility under Flexi Loan for Trade and Services Scheme? b) CRA rating of SB 10 and above c) Cash profits in each of the preceding 3 years d) Net Profit in the last year d) All of above

2 Flexi Loan for Trade and Services can be granted for the purpose of ________ a) Stocks/book debts c) Vehicles/Machinery 3

b) d)

Land and building All of above

Which type of credit facility will be granted under Flexi Loan for Trade and Services Scheme? a) Term Loan c) Overdraft

b) d)


4 What is the minimum amount that can be sanctioned under Flexi Loan for Trade and Services Scheme? a) Rs. 5.00 lacs c) Rs. 25.00 lacs

b) d)


5 Under Flexi Loan for Trade and Services Scheme, a borrower can be sanctioned a maximum loan to the tune of Rs. _____lacs a) 50.00 c) 25.00

b) d)

10.00 100.00

6 For loan of above Rs 25.00 lacs under Flexi Loan for Trade and Services Scheme, which CRA model will be used? a) Simplified Non-Trade c) Simplified Trade

b) d)

Regular Trade Regular Non-Trade

7 Minimum DSCR for loan under Flexi Loan for Trade and Services Scheme should be:____ a) 1.25 c) 1.75

b) d)

1.50 2.00 199


Term Loan under Flexi Loan for Trade and Services Scheme, will be repaid in __ a) 3-5 years c) 7-9 years

b) d)


9 The repayment period of term loan under Flexi Loan for Trade and Services Scheme can be extended upto ____years in deserving cases a) 3 c) 7

b) d)

5 8

10 TOL/TNW ratio of the unit for finance under Flexi Loan for Trade and Services Scheme should not be more than ____ a) 1 c) 3

b) d)

2 4

11 Total Long Term Liability to equity ratio of the unit for finance under Flexi Loan for Trade and Services Scheme should not be more than ____ a) 1: 1 c) 3: 1

b) d)

2: 1 4: 1

12 Current Ratio of the unit for finance under Flexi Loan for Trade and Services Scheme should not be less than ____ a) 1 c) 1.33

b) d)

1.25 1.50

13 Which type of SSI units can be sanctioned loan under General Purpose Term Loan for SSI Sector Scheme? a) c)

CRA rating SB 7 & above No default history

b) d)

Profits in all the preceding 3 yrs. All of above

14. Which type of facility can be granted under General Purpose Term Loan for SSI Sector Scheme? a) c)


b) d)

Term Loan Overdraft

15 Credit facility under General Purpose Term Loan for SSI Sector Scheme, can be granted for ___________________ a) c)

Shoring of NWC Payment of High cost debt

b) d)

R&D All of above 200


16 Maximum loan under General Purpose Term Loan for SSI Sector is Rs.___lacs a) b) 17

50 100

3 7

b) d)

5 6

The repayment period of term loan granted under General Purpose Term Loan for SSI Sector Scheme can be extended upto _______years in deserving cases a) c)

19

b) d)

Term loan sanctioned under General Purpose Term Loan for SSI Sector Scheme, will be repaid in ______years a) c)

18

10 25

3 4

b) d)

5 7

While arriving at TNW for sanctioning loan under General Purpose Term Loan for SSI Sector Scheme, loans from friends and relatives will be treated as _____ a) c)

Capital Current Liability

b) d)

Quasi-Capital Term Liability

KEY TO ASSIGNMENT Flexi Loan for Trade & Service & General Purpose Term Loan for SSI 1 d 11 b

2 d 12 a

3 a 13 d

4 a 14 b

5 d 15 d

6 c 16 b

7 b 17 a

8 a 18 b

9 d 19 b

10 d 20

201


ASSIGNMENT NPA MANAGEMENT & RECOVERY PROCESS-I 1. NPA stands for__________ a) b) c) d)

Non Payment of Account Non Payment of Asset Now Performing Asset Non Performing Asset

2. SMA stands for___________ a) b) c) d)

Specially Managed Accounts System Managed Accounts Some Mentioned Accounts Special Mentioned Accounts

3. SMA is a category between___________& _____________ a) b) c) d)

Standard, Doubtful Doubtful, Loss Standard, Substandard Loss, Doubtful

4. IRAC stands for___________ a) b) c) d)

Income recognition & Advances Classification Interest recognition and classification Income Recognition and Asset Classification None of the above-

5. INCA stands for__________ a) Interest not be collected account b) Interest not be counted against c) Interest not collected account d) None of the above 6. URIPY stands for_____________ a) Under realized interest of previous year b) Unrealized interest for previous year c) Under realized income of previous year d) None of the above 202


7. A term loan will be treated NPA, if any Interest and/or instalment of principal remain ‘overdue’ for a period of more than _________days a) 30

b)

60

c)

90

d)

180

8. A Cash Credit or Overdraft Account will be treated NPA, if account remains ‘out of order’ for a period of more than_________days. a) 30

b)

60

c)

90

d)

180

9. Out of Order means: i) If the outstanding balance remains continuously in excess of the sanctioned limit/drawing power OR ii) If the outstanding balance in the principal operating account is less than the sanctioned limit/drawing limit, but there are no credits continuously for 90 days or credits are not enough to cover the interest debited during the same period. a)

Only (i)

b)

Only (ii)

c) either i or ii d)

none of these

10. ATL/ACC/KCC will be treated NPA, if any Interest and/or instalment of principal remain ‘overdue’ for a period of _________ a) b) c) d)

two harvest seasons, but not exceeding a period of two half years. 2 crop seasons for short & one crop season for long duration from due date either a or b neither a nor b

11.

An account will be identified as NPA from: the date of out of order b) the date on which interest /principal have remained overdue for 90 days . c) the date since interest charged during any quarter is not serviced fully within 90 days from the beginning of the quarter d) None of the above

12.

A Sub-Standard asset is one, which has been classified as NPA for a period not exceeding ________months a)

13.

24

b)

12

c)

18

d)

06

A Doubtful asset is one, which has been remained as NPA for a period exceeding ________months a)

24

b)

12

c)

18

d)

06 203


14.

The age of DA-1, DA-2 & DA-3 will be ___________ a) b) c) d)

15.

upto 1 year, more than 1 year to 3 years & over 3 years upto 2 years, more than 1 year to 4 years & over 4 years upto 3 years, more than 2 years to 3 years & over 5 years None of the above

A Loss asset is one where: a)

loss identified by the Bank or internal or external auditors or the RBI inspection but the amount has not been written off , wholly or partly. If the realizable value of security, assessed by the bank/approved valuers/RBI inspection, is < 10% either a or b neither a nor b

b) c) d) 16.

If there is a sudden reduction in the value of security in the account (above 50%) in a sub standard account a) b) c) d)

17.

A general provision of a minimum of ______ to _____.is required to be made on Standard Assets on global portfolio basis. a) b) c) d)

18.

It will make no difference to the asset classification The asset classification depends upon time period elapsed The account can be straightway categorized as Doubtful None of the above

02.5% - 3.0% 0.25% - 2.0% 01.0% - 2.0% zero %

A general provision of _______on total out standings in Sub-standard accounts (Secured portion) should be made a) 2.5%

19.

b) 0.25%

c) 10%

d) zero %

A provision of ______,________ should be made on the secured & unsecured portion of the Substandard assets . a) b) c) d)

2.5%, 12.5% 50%, 60% 10%, 20% 100% 204


20.

A provision of _______should be made on unsecured portion of the Doubtful assets. a) 2.5%

21.

100%

b)

50%

c)

75%

125%

d)

If one account of the borrower becomes NPA, what will be IRAC status of other accounts? a) b) c) d)

24.

20, 100, 50 20, 30, 100 20, 30, 40 20, 40, 50

A provision of_____should be made on Loss assets. a)

23.

d) 30 %

c) 100%

A provision of ____, _____&_____is made on secured portion of D1, D2 & D3 Assets respectively. a) b) c) d)

22.

b) 50%

Only the account which has become NPA will be classified NPA NPA classification will be facility wise. All accounts of the borrower will be classified as NPA None of the above

If there is a sudden reduction in the value of security (upto 100%) in a sub standard account a) b) c) c)

It will make no difference to the asset classification The asset classification depends upon time period elapsed The account can be straightway categorized as Doubtful. The account can be straightway categorized as loss. KEY TO ASSIGNMENT NPA MANAGEMENT & RECOVERY PROCESS-I


1 c 11 b 21 b

2 d 12 b 22 a

3 c 13 b 23 c

4 c 14 a 24 d

5 c 15 c

6 a 16 c

7 c 17 b

8 c 18 c

9 c 19 c

10 c 20 c

205


NPA MANAGEMENT & RECOVERY PROCESS-II 1.

Where can rate of interest be rectified in DL/TL loan processing? a) Maintenance

2.

b) 7

d) 9

b) Long enquiry

c) Common processing

d) a & c

Which is the most popular recovery channel? a) Lok Adalats Courts

5.

c) 8

Where to find that an account has become an NPA? a) Short enquiry

4.

c) Long Inquiry d) none of the above

How many new IRAC codes are available in the system? a) 6

3.

b) Short inquiry

b) DRTs

c) SARFAESI Act

d) Civil

Which advances may not become NPAs under the 90 day norm a) Staff advances b) Advances where moratorium has been granted c) Advances where the outstandings are covered by security value as in NSCs/IVPs /FDRs d) All of the above

6.

Lok Adalats have______ a) b) c) d)

7.

adequate powers no powers judicial powers none of the above

What is the maximum amount in lacs for a suit to be filed in LOK ADALATS ? a) 10 lacs

8.

b) 15 lacs

c) 20 lacs

d) 25 lacs

Can doubtful Asset be upgraded to Sub-standard on Cash Recovery? a) Yes c) Partial to the extent of recovery.

b) No d) Partial to the extent of intt. recovery .

206


Which of the following is not a Power of Bank/FI under Securitization. a) Realize dues without intervention of court. b) Take over assets by authorized official c) Sell Assets of borrower other than mortgaged ones. d) Direct the debtors of borrower to pay direct to Bank.

10.

Under which of the following conditions Securitization is not applicable. a) Where outstanding is Rs 1,00,000/- & above. b) A/C is in live ladger. c) Our share is more than 75% among secured creditors. d) Law of limitation is applicable

11.

_______days notice is required under section 13(2) of Securitization Act. a) 45

12.

b) 30

c) 90

d) 60

Recovery Agents should contact the borrower between------hrs -----hrs. a) 0500 & 1200 b) 0700& 1900 c) 1000& 2000 d)1100 & 2100

13.

Allied agricultural activity loans such as poultry loans will be come NPA if a) Default persists as per 2 crop seasons ,not exceeding 2 half years b) In accordance with 90 day norms c) None of the above

14.

On which IRAC status the account is actually treated as NPA a) Old IRAC

15.

b) New IRAC

c) None of above

When the old IRAC status is replaced by the system with new IRAC status. a) Daily b) Monthly c) Once in a year on date defined by the bank d) As & when advised by the branch

207


KEY TO ASSIGNMENT NPA MANAGEMENT & RECOVERY PROCESS-II

Q. Ans. Q. Ans.

1 a 11 d

2 c 12 b

3 d 13 b

4 c 14 b

5 d 15 c

6 c 16

7 c 17

8 b 18

9 c 19

10 b 20

208

STATE BANK LEARNING CENTER, PANCHKULA Legal Aspects of Banking-I 1.

Issuance of a cheque without balance is punishable under a) Cr.CPC (c)Banking Regulation Act

2.

A & b maintain a current account operated by E OR S . b has filed insolvency petition and a cheque drawn by A is presented for payment. It would be in order a. b. c. d.

3.

(b) IPC (d) NI Act

to Pay the cheque to return the cheque with the objection “Bs” confirmation required to return the cheque with the reason “joint account holder involved in an solvency proceedings” none of the above

A Power of Attorney is terminated on the (a)Death of the customer (c) Insolvency of the customer

4.

Important portions of the Trust Deed relevant to the trust account must be entered in the …….. (a) Branch Document Register (c)Not to be entered

5.

(b) Lunacy of the customer (d) All of the above

(b) Power of attorney register (d) Trust Deed Register

When a trustee becomes insolvent the trust account which he is authorized to operate …… a) Must be closed b) Must be closed & fresh a/c opened for future operations c) Can be continued but operations watched carefully d) That trustee should not be allowed to operate the account

6.

The statutory protection available to a collecting banker under Sec. 131 of NI Act is available in case of-----------: a) All cheques and drafts c) Crossed cheques and drafts

7.

b) Only bearer instruments d) none of these

Holder in due course is defined under section------of Negotiable Instrument Act. a) 10 c) 9

b) 8 d) 18

209


The account opening form of a partnership firm, admitting a minor to the benefits of the partnership, vide Sec. 30(1) of Indian Partnership Act, with the consent of all the partners, is signed by whom? a) b) c) d)

9.

All partners, including the minor All partners, authorised to operate on the account All partners, including the dormant/sleeping partners, except the minor Only Active Partners

A dishonoured Bill of Exchange, alongside evidence of dishonour, is required to be noted with---a) Competent court c) Notary Public/Oath commissioner

10

Which section of the Negotiable Instruments Act, 1881 permits institution of criminal proceedings against persons who have issued cheques that have bounced? a) Sec. 144 c) Sec. 138

11

b) 10 d) 20

While collecting cheques/bills etc. for a customer the bank acts as--------------------------a) An agent of the customer c) A pledger

14

b) Pledge d) Hypothecation

What is the maximum number of partners in a non-banking partnership firm? a) 7 c) 12

13

b) Sec. 28 d) Sec. 50

A contract of Insurance is a contract of---------------------------: a) Indemnity c) Guarantee

12

b) Registrar of Societies/Firms d) None of the above

b) A trustee of the customer d) A debtor

Protection under Section 131 of the N.I. Act is not available to collecting bankers for the following: a) b) c) e)

Cheques bearing account payee endorsements Cheques bearing forged endorsements Cheques with irregular endorsements None of the above

210

STATE BANK LEARNING CENTER, PANCHKULA 15 A Holder in Due Course of a cheque does not get protection in case of-----------a) Irregularity in endorsement b) Forging an endorsement c) Default in the title of previous holder d) None of the above 16 The Negotiable Instruments Act allows 3 days of grace on-------------------------: a) Cheques c) Promissory Note

b) Usance Bills of Exchange d) Demand Draft

17 Inchoate Negotiable Instrument means---------------------------------: a) Post-dated instrument c) Lost instrument

b) Pre-dated instrument d) Incomplete Instrument

18 Negotiable Instrument does not deal with-------------------------: a) Promissory Note b) Bill of Exchange c) Term Deposit Receipt d) Cheques 19 In case of wrongful payment of a cheque the Bank is liable to------------a) Payee c) Drawer

b) Holder d) Holder-in-due-course

20 A banker collects a cheque on account of a customer who is not a true owner of the instrument. The banker will be held liable for “conversion” unless: a) b) c) d) 21

22

The cheque was specially crossed to the collecting bank The cheque was crossed “Account Payee only” The cheque was crossed before it was deposited into the bank The cheque was crossed before it was presented to the paying bank

In the case of dishonour of cheque due to insufficiency of funds the punishment under Section 138 of N.I. Act is---------: a) Twice the amount of cheque b) One year imprisonment c) Twice the amount of cheque or one year imprisonment d) Twice the amount of cheque or two year imprisonment or both Rule in Clayton’s case has been incorporated in the------------------------: a) Negotiable Instrument Act, 1881 c) Indian Partnership Act, 1932

b) Banking Regulation Act, 1949 d) Indian Contract Act, 1872

211


What is the maximum number of partners in a Banking partnership firm? a) 7 c) 12

24.

A trust has X and Y as its trustees. X is adjudged insolvent. Subsequently a Cheque signed by X is presented for payment. We should------: a) b) c) d)

25.

b) 10 d) 20

Pay the cheque, if otherwise in order Pay the cheque after confirmation of Y Not pay the cheque; as such payment will not be payment in due course None of these

A joint account is in the name of A and B with instructions " either or survivor". A grants a power of attorney in favour of C. We should-------: a) Not allow C to operate the account without oral confirmation of B. b) Allow C to operate the account, as either of account holders is competent to appoint an attorney c) Not allow C to operate the account d) Suggest B that he should also execute a power of attorney in favour of somebody

Key to Assignment: Legal Aspects of Banking-I Q Ans. Q. Ans. Q. Ans

1. d 11 a 21 d

2. c 12 d 22 d

3. d 13 a 23 b

4. a 14 c 24 a

5. C 15 A 25 C

6. c 16 b

7. c 17 d

8. c 18 c

9. c 19 c

10. c 20 a

212

STATE BANK LEARNING CENTER, PANCHKULA Legal Aspects of Banking-II 1.

Banker’s general lien is defined under which of the following Act-------. a) Sale of Goods Act c) Negotiable Instrument Act

2.

The Banker’s Lien on securities is treated as---------------a) Implied Pledge c) A special right

3.

b) Transfer of Property Act d) Indian Contract Act

b) Direct Pledge d) None of the above

A banker has following securities with him. Which of these is subject to banker’s general lien? a) b) c) d)

4.

Securities received for sale Securities deposited upon a particular trust. Securities left in banker’s hands for an advance which has been declined None of the above What does the term particular lien denote--------------

a) b) c) d)

Right to retain possession of goods in respect of which the dues have arisen Right to keep the securities indefinitely Right to sell the securities Right to keep the securities for other dues

5. Because the bank’s right under general lien is an implied pledge, in case of default, the bank, after giving a proper/reasonable notice to the borrower can-----------a) b) c) d) 6.

Convert general lien into a particular lien Sell the security under certain circumstances without filing a suit Can sell only after filing a suit None of the above

A bank has a right called ----------to club two accounts (one of which has debit balance and another has credit balance) in the same capacity, of customer: a) Right of lien c) Right of adjustment

b) Right of Set-off d) Right of appropriation

7. Right of set off is exercisable, where the relationship is of_________ a) Bailor - Bailee c) Debtor-Creditor, Creditor-Debtor

b) Lessor-Lessee d) Principal-Agent

213


8. For which among the following, the banker can exercise its right of set off, in case of need. a) Debts which are to arise in future b) Contingent debts of the customer c) Funds deposited by the debtor for a specific purpose d) For due and lawful debts 9. In respect of time barred debts, right of set off--------------: a) b) c) d)

is not available can be exercised after obtaining permission from the court. can be exercised after obtaining consent letter. can be exercised if loan and deposit are in the same right/capacity.

10. ‘X’ has a joint “former or survivor” account XY with his wife ‘Y’. ‘X’ has an overdraft account, where he is not paying dues. Can you exercise right of set off as a banker--------a) No, in joint accounts it is not possible b) Yes, it is possible as the account is former or survivor c) Yes, after obtaining consent of Y d) Yes, after obtaining court order 11. Garnishee order is issued under which of the following-----------a) b) c) d)

Civil Procedure code Criminal Procedure code Indian Contract Act. Banking regulation Act.

12. A Garnishee order is issued by ------------a) The RBI to scheduled bank for stopping payment in an account. b) The competent court for attaching funds due to a judgement debtor by a third party for payment to the judgement creditor. c) The Income Tax Recovery Officer attaching funds in the account maintained by the bank. d) The district Magistrate requiring the bank to remit to his office a certain sum of money to the debit of particular account.

214

STATE BANK LEARNING CENTER, PANCHKULA 13. Attachment Order is issued by---------------a) The RBI to scheduled bank for stopping payment in an account. b) The competent court for attaching funds due to a judgement debtor by a third party for payment to the judgement creditor. c) The Income Tax Recovery Officer attaching funds in the account maintained by the bank. d) The district Magistrate requiring the bank to remit to his office a certain sum of money to the debit of particular account 14. In the process of issuing a Garnishee order court first issues-----------a) b) c) d)

Order Nisi Order primary Order attachment Order absolute

15. Who is a garnishee in case of a bank account, where a garnishee order is served? a) Judgement debtor b) Judgement creditor c) Judgement debtor’s debtor d) Cash credit customer 16. Your branch has received a garnishee order for the account of Mr. ‘X’. What is the first action you are required to take? a) b) c) d)

After paying the amount to the court, the customer be informed. After paying the amount to Judgement creditor, the customer be informed. Stop operations and inform customer None of the above

17. An attachment order is received from Income Tax Officer for attaching funds lying in saving bank account of a person. What will be the consequences, in case, the bank fails to execute this order u/s 226(3) of income tax Act: a) b) c) d)

Branch manager can be arrested. Branch manager can be fined upto Rs. 5000 and sentenced upto one year. The banker shall be treated as an assessee in default. Amount can be recovered from the Bank, with penalty.

18. A bank has received on order under section 226(3) of the income tax act, 1961 in the name of a customer who has a fixed deposit account, which is already matured. Which of the following action the bank should take while making payment to the income tax officer concerned?

215

STATE BANK LEARNING CENTER, PANCHKULA a) The bank should insist for production of FDR duly charged by the party b) The bank cannot insist for production of FDR c) Production of FDR may be waived only if the income tax officer executes an indemnity bond in favour of the bank. d) None of these 19. Which of the following statement is correct in case your branch receives an attachment order from the income tax authorities? a) Your right of set off becomes inoperative b) You can exercise right of set off in respect of existing claims against the customer c) You can exercise the right of set off after obtaining an order from a competent court d) none of these 20. If the garnishee order is received on a firm’s account, what would be the position of individual account of partners being maintained with same bank branch? a) b) c) d)

The order will be applicable The order will not be applicable It will be applicable through special order of court None of the above

Key to Assignment : Legal Aspects of Banking-II

Q. Ans. Q. Ans.

1 d 11 a

2 a 12 b

3 d 13 c

4 a 14 a

5 b 15 c

6 b 16 c

7 c 17 c

8 d 18 b

9 d 19 b

10 b 20 a

216


SARFAESI ACT & CENTRAL REGISTRY 1.)

2.)

The SARFAESI Act is applicable for pledged securities also. (True or false) For the enforcement of a mortgage security, court intervention is required even for actions under the SARFAESI Act. (True or False)

3.)

After receipt of notice from the secured creditor for repayment of dues by the borrower, the borrower is legally prevented from transferring his property in any way. (True or False)

4.)

On request of the secured creditor the District Magistrate or the Chief judicial Magistrate can take possession of the security for handing over it to the creditor. (True or False)

5.)

When the management of the company is taken over by the secured creditor, the directors of such company are entitled to compensation for loss of office. (True or False)

6)

A securitization or reconstruction company needs registeration from RBI for commencement of business. (True or False)

7).

Right of acquisition of a financial asset by the securitization company or reconstruction company is subject to the prior agreements or contracts about the asset . . (True or False)

8).

Acquisition of a financial asset by the securitization company or reconstruction company is with the liability also over such an asset. (True or False)

9).

The security receipts issued by the securitization or reconstruction company requires registration. . (True or False)

10).

SARFAESI Act is applicable to the Regional Rural Banks. (True or False)

11).

Mortgage or asset backed debt instruments can be issued by the securitization company or reconstruction company to the general public. . (True or False)

12).

SARFAESI Act is applicable only when there is security. (True or False)

217


13).

Has SARFAESI Act defined hypothecation and whether the Act is applicable to hypothecation security? . (True or False)

14).

After coming into operation ,the provisions relating to central registry the banks and financial institutions will have to register all security interests created in the asset. . (True or False)

15)

A guarantor to the loan is within the meaning of the word borrowed under SARFAESI Act (True or False)

16)

Banks and financial institutions can issue notice for enforcement over security under SARFAESI Act only if these securities are not __________ creditor and only when the account is classified as ___________

17.)

If the borrower does not pay within ___________ days after notice by the secured creditor the creditor can __________ of the security.

18)

Which are the four documents involved for the securitization transaction?

19)

For each such acquired or to be acquired asset by the securitization or reconstruction company there should be --------------- scheme.

20).

When the securitization or reconstruction company issues security receipts, the holder thereof is entitled to a -------------in the financial asset.

21).

Any direction issued by the RBI under SARFAESI act has ---------effect and is ------------on the parties concernerd.

22).

Asset reconstruction means -------------- by any securitization company or reconstruction company of any right or interest of the creditor in any------

23).

The period stipulated in the Act for filing details of security interest is -------days.

24).

Duty to report satisfaction of charge to the central registerar is on the creditor or on the borrower ?

218

STATE BANK LEARNING CENTER, PANCHKULA 25).

Besides the SARFAESI Act ,some other laws requires some registration of charge created in the property. Is such double registration avoidable? a) Yes, the creditor can choose under such law he needs registration. b) No, registration under the SARFAESI Act as well as any other applicable law will have to be madeas the SARFAESI Act is not subsititution of any other law. c) Yes, if one charge noting is by a registered document. d) No, as the Civil Court and DRT still have jurisdiction against the properties both registration.

26.)

When any bank or financial institutions obtain a charge against property, with which will the transaction have to be registered under the SARFAESI Act, 2002? a.) With the central Registry. b.) With the ROC. c.) With the registrar of Assurance within whose jurisdiction the property lies. d.) With the Reserve Bank of India.

27.)

When can the provision of SARFAESI Act, 2002 be invoked for proceeding against the charged property? a.) When the bank feels that it is necessary for the recovery at any time. b.) When the RBI directs to do so. c.) When there is default in repayment by the borrower. d.) When there is default in repayment and the bank declares the account as NPA.

28).

Whether existing or future receivable are property? a.) Yes. b.) No. c.) Yes, but if and when charged to the leader. d.) NO, if hypothecated to the leader.

29)

From the following which function is of a securitization company? Acquisition of loan transaction from the lender. Help the lender in recovery by sale of charged property. Take legal steps against the defaulter borrower on behalf of the lender. d.) Acquisition of financial assets from the originator. a.) b.) c.)

219

STATE BANK LEARNING CENTER, PANCHKULA ANSWERS: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29.

False False True True False true False False False False False True True True True In possession,NPA Sixty,take possession offer document,debenture,agreement,security receipt Separate Undivided interest Statutory,binding Acquisition,financial assistance 30 Creditor b a d a d

220


1.

Advances General Two firm are said to be identical when

a) b) c) d)

Partners of the firms are the same When two firms have some common partners When the two firms have any common partner When the two firms have same name

2.

Minimum number of directors in a public limited company must be…………….

a)

5

3.

b) 10

c) 12

d) 3

e) None of these

Which among the following is not found in the MOA of a Company? a) c)

4.

Objectives of the company Borrowing powers of the directors

b)Authorised Capital d)Registered Office

A person will be declared as legally dead, if for a period of ………….years or more the persons who would have normally known of his existence have not heard of him/known of his existence.

a) 12 yrs

b)7 yrs

c) 5 yrs

d)3 yrs

5.With with does section 45Z of Banking Regulation Act ,1949 deals with? a)Return of unclaimed deposits c)Maintenance of Currency chests

b)Permission to open branches d(Nomination Facility

6.As per the Indian Limitation Act, an equitable mortgage becomes time-barred after ____ years. a) 3 b) 6 c) 10 d) 12 7.The certificate to commence business is to be called for, for perusal and return for opening of an account of: a) Public Limited Company c) Private Limited Company

b) Club & Association d) Partnership firms

8.Articles of association of a company contains details regarding: a) b) c) d)

Objectives of the company Authorized capital of the company Matter related to the conduct of day-to-day business of the company Registered office of the company 221


9.Accounts in the name of companies can be opened without certificate of commencement of business in the case of ___: a) b) c) d)

Public Limited Companies Public Limited Companies with an authorised share capital of Rs. 1.00 crore Private Limited Companies None of these

10.In the matter of a Joint Stock Company, the term “negative lien” means: a) A lien which does not confer on the bank a right of sale of asset b) Where a company, through its own resolution is restrained from creating further charge on its assets c) Where a charge created in favour of the bank is not registered with the Registrar of Companies d) The charge is in the nature of only a floating charge on its assets. 11.In the case of joint stock company, the registration of charge with the Registrar of Companies is not necessary: a) b) c) d)

Against the pledge of movable property Against hypothecation of movable property Against assignment of book debts Against mortgage of fixed assets

12.Hypothecation advances granted to partnership undertakings should be registered with: a) c)

The Registrar of Companies The Registrar of Firms

b) The Registrar of Assurance d) Do not require any registration

13.If a married woman is a borrower and does not repay bank dues, it can be recovered: a) From her husband c) From her husband’s estate

b) From her separate estate d) None of the above

14.Guarantees are defined in: a) Negotiable Instrument Act 1881 b) Banking Regulation Act 1949 c) Indian Contract Act 1872 d) RBI Act 1934

222

STATE BANK LEARNING CENTER, PANCHKULA 15.The mortgage has been defined under section _____of Transfer of Property act: a) 57 c) 59

b) 58 d) 60

16.In the event of mortgage of immovable property, which of the following is true….. a) Ownership is transferred c) A specific interest is created

b) Right is transferred d) None of the above

17.For creating an equitable mortgage, which of the following is required: a) Original Title Deed c) Attested copy of the title deed

b) Photocopy of the title deed d) Only Furd (Girdawari)

18.In case of mortgage of immovable property as collateral security, a search report from legal counsel is insisted upon for____ years: a) 8 c) 12

b) 10 d) 30

19.When a debt is offered as security, which charge should be created: a) Assignment c) Pledge

b) Hypothecation d) None of the above

20.The charge assignment is governed by the provisions of: a) Negotiable Instrument Act 1881 b) Transfer of property Act c) Indian Contract Act 1872 d) RBI Act 1934 21.When loan is to be granted against the security of a LIC policy, which charge is to be created: a) Mortgage c) Assignment

b) Hypothecation d) Pledge

22.After the repayment of the loan secured by assignment of debt the charge is: a) b) c) d)

Transferred in favour of borrower Endorsed in favour of the borrower Re-assigned in favour of the borrower None of the above

223

STATE BANK LEARNING CENTER, PANCHKULA 23. If the assignor is a Ltd. Co., whether the registration of charge u/s 125 of Companies Act is necessary: a) b) c) d)

Yes Not necessary Preferable, in the interest of the bank none of the above

24.Hypothecation is defined in: a) Indian Contract Act 1872 c) Negotiable Instrument Act

b) Transfer of Property Act d) SERFASI

25.The pledge is defined under section __________of Indian Contract Act.: a) 172 c) 372

b) 272 d) None of the above

Advances - General Q Ans. Q. Ans. Q. Ans.

1. a 11 a 21 c

2 d 12 d 22 c

3 c 13 b 23 a

4 b 14 c 24 d

5 d 15 b 25 a

6 d 16 c

7 a 17 a

8 c 18 c

9 c 19 a

10 b 20 b

224

STATE BANK LEARNING CENTER, PANCHKULA Advances General matters-I 1.

The companies are required to seek an extension of time from the concerned Registrar of Companies, if audited accounts are not approved by shareholders at annual general meeting within … months. a. 3 b. 6 c. 9 d. 12

2.

The Bank Guarantees are covered undera. Sale of Goods Act b. N.I. Act c. Indian Contract Act d. Companies Act

3.

MCA – 21 relates to _____ a. b. c. d.

4.

Master of Computer Appreciation Ministry of Company Affairs Member Chartered Accountant Registration of Charge with ROC

Which new e-forms will be used for creation/modification/satisfaction of charge with ROC a) 8, 10, 13 c) 8, 10, 17

5.

b) d)

31-05-2006 31-07-2006

Authorised officials of the branches should obtain Digital Signature Certificates (DSC) from IDRBT before _______ a) 30-04-2006 c) 30-06-2006

7.

8, 10, 15 8, 10, 19

For filing the charge for registration, documents in physical form are not been accepted after ______ a) 30-04-2006 c) 30-06-2006

6.

b) d)

b) d)

31-05-2006 31-07-2006

“Small Business Credit Card” has been rechristened as ______ a) SME Credit Card c) Kisan Credit Card

b) d)

SME Credit Plus Kisan Gold Card 225


8.

Working capital limit for SSI units upto Rs. 5.00 crore should be assessed as per ________method a) Operating Cycle c) Nayak Committee

9.

b) d)

Projected Annual Turnover None of above

Which of the following is not a Current Assets a) b) c) d)

11.

Traditional Projected Balance Sheet

Working capital limit for C& I (Mfg) units upto Rs. 5.00 crore should be assessed as per _____method a) Traditional Method c) Projected Balance Sheet

10.

b) d)

Advance given to supplier Prepaid expenses Dues from partners Interest accrued on investment

“Cost of Sales” is _______ a)

Cost of Raw Material consumed and direct expenses including depreciation b) Cost of Raw Material consumed and direct expenses excluding depreciation c) Cost of Production plus indirect expenses d) Cost of production plus opening stocks of semi-finished and finished goods minus closing stocks of semi-finished and finished goods

12.

Profit Volume Ratio is _____ a) b) c) d)

13.

Gross Profit divided by Turnover Profit % of selling price Net Profit % of Cost of sales Contribution % of Selling Price

When there is no production, the net loss will be equal to ____ a) Fixed Costs c) Total Costs

b) d)

Variable Costs Break even sales

226


Break Even Point for sales is equal to _____ a) b) c) d)

15.

Cash Accrual is _____ a) b) c) d)

16.

Selling price per unit X Fixed Cost/Contribution Sales – Cost of Sales/Sales Fixed Cost/Contribution None of above

Cash received minus cash paid during the year Profit Before Interest and tax plus depreciation Profit after interest and tax plus depreciation Savings with housewives

DSCR calculated to ensure the repayment of Term Loan indicates, unit’s, a) Liquidity c) Solvency

17.

Applicant, Beneficiary and Guarantor Debtor, Creditor and Surety Promiser, Promisee and Bank None of above

The objective of Funds Flow Analysis is _____ a) b) c) d)

19.

Ensure term loan repayment Ensure end use of credit To check margin for working capital All of above

Funds Flow Analysis is done if a unit has availed working capital limit of _______ a) Rs. 5 lac and above c) Rs. 20 lac and above

20.

Profitability Turnover

Various Parties to a Bank Guarantee are _____ a) b) c) d)

18.

b) d)

b) d)

Rs. 10 lac and above Rs. 25 lac and above

Profit from normal business and retained in the business are termed as _____ a) Revenue Reserve c) Statutory Reserve

b) d)

Capital Reserve None of above

227


Bank’s charge on the assets of a company, has to be registered with the Registrar of Companies under Indian Companies Act within ____days a) 10 c) 30

22.

Ranking equally in priority Ranking in proportion to the lender’s share in total advances Ranking as per the ranks of individual bank Ranking as per CRISIL Rating

In a Funds Flow Analysis, “FUNDS” refer to _____ a) Cash c) Net Working Capital

24.

20 45

Pari Passu charge refers to _____ a) b) c) d)

23.

b) d)

b) d)

Working Capital Gap All financial Resources

To verify the “CAPITAL CLAUSE” of a company as a banker, the document needs to be checked is _______ a) Memorandum of Association b) Articles of Association c) Certificate of Incorporation d) Certificate of commencement of Business ADVANCES GENERAL MATTERS-I

1 6 11 16 21

b c d c c

2 7 12 17 22

c a d a a

3 8 13 18 23

d c a b d

4 9 14 19 24

c b a d a

5 10 15 20

c c c a

228

STATE BANK LEARNING CENTER, PANCHKULA Advances General matters-II 1. “Debt” in a balance sheet refers to _____ a) Outside Liabilities c) Term Liabilities

b) d)

Current Liabilities None of above

b) d)

Fixed Assets None of above

2. “Block Assets” means _____ a) Goodwill c) Non moving assets 3. “Equity” refers to ______ a) b) c) d)

Capital, Reserves & Surplus and Retained Profit Equity shares Capital and Term Liabilities None of above

4. In “SWOT ANALYSIS’, S stands for Strength, W for Weakness, O for Opportunities and T for _____ a) Technology c) Threats

b) d)

Technical ability None of above

b) d)

Importing goods None of above

5. Packing Credit is granted for _____ a) Packing goods c) Advance against Exports

6. In case of bank guarantee issued to ensure for prompt payment of instalments for the machinery/equipment purchased, the type of guarantee issued is a) Financial c) Bid-Bond

b) d)

Performance Deferred Payment

7. Centres for creating equitable mortgage are _____ a) b) c) d)

All district headquarters Centres approved by Local Head Office Notified as per Transfer of Property Act Notified by RBI

229


Ability to meet immediate liabilities of a unit is indicated by ______ a) c)

9.

Quick Ratio TOL/TNW

b) d)

DER DSCR

Which of the following denotes to liquidity ratios a) DER and TOL/TNW b) DER and Current Ratio c) Current Ratio and Quick Ratio d) TOL/TNW and DSCR

10.

How Statutory liabilities will be classified in the Balance Sheet? a) c)

11.

b) d)

Non Current Assets Current Assets

How the liabilities i.e. tax and dividend payable etc which are known but not provided for, are classified? a) b) c) d)

12.

Non Current Liabilities Current Liabilities

Provide for these liabilities as Current Liabilities Treat as Misc. Liabilities Classify as Term Liabilities Deduct from Profit

Sensitivity analysis refers to _____ a) Technique of determining the effect of changes in Cost of Raw Material, Sales and Selling Price b) Technique of determining effect of technology on products c) Technique of determining effect of competition d) None of above

13.

Contribution means ______ a) b) c) d)

14.

Excess of revenue over variable cost Excess of revenue over fixed cost Excess of revenue over total cost Excess of revenue over operating cost

What is Working Capital Gap (WCG)? a) Current Assets minus Current Liabilities b) Fixed Assets minus Term Liabilities c) Current Assets minus Current Liabilities excluding bank borrowings d) None of above

230


What is bridge loan? a) Loan for construction of bridges b) Interim loan made available pending long term arrangements by raising equity and MTL etc. c) Working Capital Loan to meet long term requirements d) None of above

16.

The Bench Mark for Current Ratio is ____ a) c)

17.

Mortgage Lien

b) d)

Hypothecation Assignment

Sundry Creditors Sundry Debtors

b) d)

Receivable from Govt. Raw Material Receivable

Cash Budget Method is used for assessing working capital requirement in case of _________ a) c)

20.

1.25 1.50

“Receivables” in a Balance Sheet refers to _____ a) c)

19.

b) d)

In case of Cash Credit limit against Book Debts, what will be the primary security? a) c)

18.

1.00 1.33

SSI units Seasonal Industry/Construction Co.

b) d)

C&I Units All of above

While assessing Working Capital Requirement, the margin money held on account of LCs/BGs issued will be treated as _____ a) c)

Fixed Asset Intangible Asset

b) d)

Current Asset Non-Current Asset

KEY 231

STATE BANK LEARNING CENTER, PANCHKULA Advances General matter-II

1 6 11 16

c d a c

2 7 12 17

b c a b

3 8 13 18

a a a c

4 9 14 19

c c c c

5 10 15 20

c c b b

232

STATE BANK LEARNING CENTER, PANCHKULA Advances General matter -III 1.

How many declarations are there in Fair Lending Practices Code (FLPC) a) 4 c) 8

2.

Interest rate change is to be advised to customers Bank shall deliver a copy of loan document to the customer It is a voluntary code adopted by bank None of above

Loans to SSI are collateral free upto Rs. _____lacs as per RBI Guidelines a) 1 c) 5

4.

b) d)

b) d)

Agriculturist All of above

Which type of credit facility will be provided to the borrowers against CWC/SWC Receipts a) Demand Loan c) Term Loan

7.

Exchange Discount

Financed against Central Warehousing Corporation (CWC)/State Warehousing Corporation (SWC) Receipts can be granted to _____ a) Manufacturers b) c) Traders dealing in Commodities d)

6.

3 10

Pre-payment charges on Term Loan should be credited to _____account a) Interest c) Commission

5.

6 10

Which of the followings is incorrect in respect of FLPC a) b) c) d)

3.

b) d)

b) d)

Cash Credit Both (a) & (b)

Demand Loan against CWC/SWC Receipts will be restricted to ___% of the value of the warehouse receipt valued at market value OR ___% of the minimum support price (MSP) declared by STATE/CENTRAL Govt., whichever is lower. a) 50, 60 c) 75, 80

b) d)

60, 70 80, 90

233


For finance against CWC/SWC Receipts, the Primary Security will be ____ a) b) c) d)

9.

For finance against CWC/SWC Receipts, the Collateral Security will be ____ a) b) c) d)

10.

Personal Guarantee of partners or major shareholders Hypothecation of Goods Charge over warehouse receipt All of above

Personal Guarantee of partners or major shareholders Hypothecation of Goods Charge over warehouse receipt All of above

Loan granted against CWC/SWC Receipts will be repaid in a maximum period of ____months a) 3 c) 9

11.

Weekly Monthly

b) d)

75 200

A manufacturing and Trade & Service business unit can be defined as SME if its turnover is upto Rs. _____crore a) 10 c) 20

14.

b) d)

Composite loan to SSI sector has been enhanced from Rs. 50 lacs to Rs. _______lacs a) 60 c) 100

13.

6 12

Margins for loan granted against CWC/SWC Receipts should be topped up on ____basis a) Daily c) Fortnightly

12.

b) d)

b) d)

50 25

RBI has fixed prudential exposure norms @ _____% of total capital funds to single borrower a) 5 c) 15

b) d)

10 20

234


RBI has fixed prudential exposure norms @ _____% of total capital funds to single borrower including additional exposure of 5% for infrastructure financing a) 5 c) 15

16.

b) d)

RBI has fixed prudential exposure norms @ _____% of total capital funds to group borrowers a) 20 c) 40

17.

10 20

b) d)

30 50

RBI has fixed prudential exposure norms @ _____% of total capital funds to group borrowers including additional exposure of 10% for infrastructure financing a) 20 c) 40

b) d)

30 50

KEY Advances General matter -III 1 6 11 16

c d c c

2 7 12 17

d c c d

3 8 13

c c b

4 9 14

a a c

5 10 15

c d d

235


Advances General matter -IV 1.

Articles of association of a company contains details regarding: a) b) c) d)

2.

Objectives of the company Authorized capital of the company Matter related to the conduct of day-to-day business of the company Registered office of the company

Accounts in the name of companies can not be opened without certificate of commencement of business in the case of……… a) Public Limited Companies b) Public Limited Companies with an authorised share capital of cr. c) Private Limited Companies d) None of these

3.

In the case of joint stock company, the registration of charge with the Registrar of Companies is not necessary: a) b) c) d)

4.


For creating an equitable mortgage, which of the following is required: a) c)

5.

Original Title Deed Attested copy of the title deed


A DP note obtained without affixing revenue stamps ………. a) can not be Rectified c) no effect

6.

Rs. 1.00

b) can be admitted as evidence. d) both a & b

In “SWOT ANALYSIS’, S stands for Strength, W for Weakness, O for Opportunities and T for _____ a) Technology c) Threats

b) d)

Technical ability None of above

236


Non registration of a firm with the Registrar of Assurances attracts the following disability a) b) c) d)

8.

Creditors can not sue the firm The firm cannot sue the debtors Partnership cannot be wound up Firm cannot borrow from the bank

Which one classification of Preference Shares is incorrect a) b) c) d)

9.

Current Liabilities if falling due in next 12 months Term Liabilities Term Liabilities if falling due in next 12 years None of the above

As per Loan policy TOL/TNW benchmark for Manufacturing Units is a) 2

10.

b) 3

c) 4

d) 5

As per Loan Policy TOL/TNW benchmark for Traders is a) 2

b) 4

c) 5

d) 3

KEY KEY : Advances General matter –IV 1 6

c c

2 7

a b

3 8

a c

4 9

a b

5 10

d c

237

STATE BANK LEARNING CENTER, PANCHKULA LEGAL ASPECTS GENERAL BANKING-I 1.

In the case of dishonour of cheque due to insufficiency of funds the punishment under Section 138 of N.I. Act is---------: a) b) c) d)

2.

Twice the amount of cheque One year imprisonment Twice the amount of cheque or one year imprisonment Twice the amount of cheque or two year imprisonment or both

Rule in Clayton’s case has been incorporated in the------------------------: a) Negotiable Instrument Act, 1881 c) Indian Partnership Act, 1932

3.

What is the maximum number of partners in a Banking partnership firm? a) 7 c) 12

4.

b) 10 d) 20

A trust has X and Y as its trustees. X is adjudged insolvent. Subsequently a Cheque signed by X is presented for payment. We should------: a) b) c) d)

5.

b) Banking Regulation Act, 1949 d) Indian Contract Act, 1872

Pay the cheque, if otherwise in order Pay the cheque after confirmation of Y Not pay the cheque; as such payment will not be payment in due course None of these

A joint account is in the name of A and B with instructions " either or survivor". A grants a power of attorney in favour of C. We should-------: a) Not allow C to operate the account without oral confirmation of B. b) Allow C to operate the account, as either of account holders is competent to appoint an attorney c) Not allow C to operate the account d) Suggest B that he should also execute a power of attorney in favour of somebody

6.

As per recent direction of RBI, a bank can collect an account payee cheque for any person other than the payee constituent, provided. a) b) c) d)

the payee has mandated for it the drawer withdraw the account payee mandate both a and b above neither a nor b above

238


The companies are required to seek an extension of time from the concerned Registrar of Companies, if audited accounts are not approved by shareholders at annual general meeting within … months. a. 3 b. 6 c. 9 d. 12

8.

KYC norms are applicable in following cases a.All new account b.All new account and old accounts with High value transactions c.All cash transactions d.All accounts

9.

Customer’ has be defined in a. b. c. d.

10.

NI Act BR Act COPRA Act KYC Guidelines

Sec. 45ZA of Banking Regulation Act, 1949 deal with? a. Returned of unclaimed deposits b. Permission to open new branches c. Maintenance of liquid assets d. Nomination facility

11.

Unclaimed deposits are classified by the bank as …….. liabilities a. Time b. Current c. Deferred d. None of these

12.

The Bank Guarantees are covered undera. Sale of Goods Act b. N.I.Act c. Indian Contract Act d. Companies Act

239


When do we honour payment of a cheque in cash after business hours? a. If it is presented by any person b. If it is presented by the payee c. If it is presented by the drawer d. If it is presented by the person known to bank officials Answers LEGAL ASPECTS GENERAL BANKING –I

1. 6 11

d b b

2 7 12

d b c

3 8 13

b d c

4 9

a d

5 10

c d

240

STATE BANK LEARNING CENTER, PANCHKULA LEGAL ASPECTS GENERAL BANKING -II 1.

If a person is declared as insolvent, he will remain so till: a) He lives. b) Court gives discharge certificate c) He starts another business d) None of the above

2.

If a married woman is a borrower and does not repay bank dues, it can be recovered: a) From her husband b) From her separate estate c) From her husband’s estate d) None of the above

3.

The person on whose behalf the guarantee is issued is called: a) Applicant b) Beneficiary c) Guarantor d) None of the above

4.

Guarantees are defined in: a) Negotiable Instrument Act 1881 c) Indian Contract Act 1872

b) Banking Regulation Act 1949 d) RBI Act 1934

5.

Bailment has been defined in which section_____ of Indian Contract act 1872: a) 247 b) 147 c) 148 d) 347

6.

The mortgage has been defined under section _____of Transfer of Property act: a) 57 b) 58 c) 59 d) 60

7.

When the immovable property is mortgaged then: a) Ownership is transferred c) A specific interest is created

8.

For creating an equitable mortgage____ is required: a) Original of the title deed c) Attested copy of the title deed

9.



A search report from legal counsel is insisted upon for____ years: a) 8 b) 10 c) 12 d) 30

241

STATE BANK LEARNING CENTER, PANCHKULA 10. When a debt is offered as security, which charge should be created: a) Assignment c) Pledge

b) Hypothecation d) None of the above

11. The charge assignment is governed by the provisions of: a) Negotiable Instrument Act 1881 c) Indian Contract Act 1872

b) Transfer of property Act d) RBI Act 1934

12. When loan is to be granted against the security of a LIC policy, which charge is to be created: a) Mortgage b) Hypothecation c) Assignment d) Pledge 13. After the repayment of the loan secured by assignment of debt the charge is: a) Transferred in favour of borrower b) Endorsed in favour of the borrower c) Re-assigned in favour of the borrower d) None of the above 14. If the assignor is a Ltd. Co., whether the registration of charge u/s 125 of Companies Act is necessary: a) Yes b) Not necessary c) In the interest of the bank d) None of the above 15. Under Transfer of Property act………………..would mean transfer of actionable claim: a) Assignment b) Mortgage c) Negotiation d) Pledge 16. In the case of dishonour of cheque due to insufficiency of funds the punishment under Section 138 of N.I. Act is: a) Twice the amount of cheque b) One year imprisonment c) Twice the amount of cheque or one year imprisonment d) Twice the amount of cheque or two year imprisonment or both 17. Rule in Clayton’s case has been incorporated in the: a)Negotiable Instrument Act, 1881 b) Banking Regulation Act, 1949 c) Indian Partnership Act, 1932 d) Indian Contract Act, 1872 d) 242

STATE BANK LEARNING CENTER, PANCHKULA 18. A cheque is issued on 05-02-09 with remarks "valid upto 05-03-09." The cheque presented for payment on 10-03-09 should be: a) b) c) d)

Returned with the reason" cheque contains extraneous matter" Can be paid because it is within 6 months from the date of issue Returned with reason "requires revalidation" Returned with reason "insufficient funds"

19. A trust has X and Y as its trustees. X is adjudged insolvent. Subsequently a Cheque signed by X is presented for payment. We should: a) Pay the cheque, if otherwise in order b) Pay the cheque after confirmation of Y c) Not pay the cheque, as such a payment will not be payment in due course d) None of these 20. A joint account is in the name of Hari and Krishna with instructions " either or survivor". Hari grants a power of attorney in favour of Lakshman. We should: a) Not allow Lakshman to operate the account without oral confirmation of Krishna b) Allow Lakshman to operate the account, as either of account holders is competent to appoint an attorney c) Not allow Lakshman to operate the account d) Suggest Krishna that he should also execute a power of attorney in favour of somebody 21.

As per the Indian Limitation Act, an equitable mortgage becomes time barred after ____ years. a) c)

22.

b) 6 d) 12

The certificate to commence business is to be called for, for perusal and return for opening of an account of: a) c)

23.

3 10

Public Limited Company Private Limited Company

b) Club & Association d) Partnership firms

Articles of association of a company contains details regarding: a) b) c) d)

Objectives of the company Authorized capital of the company Matter related to the conduct of day-to-day business of the company Registered office of the company 243


24.

Accounts in the name of companies can not be opened without certificate of commencement of business in the case of ___: a) b) c) d)

25.

In the case of joint stock company, the registration of charge with the Registrar of Companies is not necessary: a) b) c) d)

26.


Original Title Deed Attested copy of the title deed


In case of mortgage of immovable property as collateral security, a search report from legal counsel is insisted upon for____ years: a) c)

30.

Ownership is transferred A specific interest is created

For creating an equitable mortgage, which of the following is required: a) c)

29.

The Registrar of Companies b) The Registrar of Assurance The Registrar of Firms d) Do not require any registration

In the event of mortgage of immovable property, which of the following is true….. a) c)

28.


Hypothecation advances granted to partnership undertakings should be registered with: a) c)

27.

Public Limited Companies Public Limited Companies with an authorised share capital of Rs. 1.00 crore Private Limited Companies None of these

8 12

b) 10 d) 30

IRAC norms were introduced from the year ending …… as on 31 st March a) 1992 b)1993 c) 1991 d) none of the above

244


KEY LEGAL ASPECTS GENERAL BANKING-II 1.

b

2.

b.

3.

b

4.

c

5.

d

6.

b

7.

c

8.

a

9.

d

10. a

11. b

12. c

13. c

14. a

15. a

16. d

17. d

18. c

19. a

20. c

21. d

22. a

23. c

24. a

25. a

26. d

27.c

28. a

29. d

30. b

245


International Banking ASSIGNMENT – 1 NRE ACCOUNTS 1 Who can open an NRE Account? a) Indian nationals whose stay abroad is more than 182 days in the previous financial year. b) Indian resident who have gone abroad for studies, business, profession or gainful employment indicating indefinite stay abroad. c) PIOs and their Spouse d) Officials of Central/State Govt./PSU serving abroad and persons deputed abroad with international agencies like IMF & WHO etc. e) All of the above 2 The balance along with interest in NRE account can be repatriated with the permission of __________ a) RBI c) Commerce Ministry

b) d)

Ministry of Finance No permission required

3 NRE account can be opened in the form of ________ a) C/A c) TDR

b) d)

S/B All of above

4 Joint NRE account can be opened, if _____ a) All the account holders are persons of Indian Nationality who have gone abroad for business, profession or gainful employment for indefinite stay b) PIO with spouse even he/she is foreign national c) Only first applicant to be NRI and others can be resident Indian. d) All of the above e) Either of (a) & (b) 5 Operation of NRE Account by third party can be permitted by ADs _______ a) b) c) d)

Under a Power of Attorney Letter of authority in the prescribed format Either of (a) or (b) None of the above

246


6

Which of the following credit transactions are permitted into NRE Account? a) Transfer from any other NR (E) account of the same account holder b) Transfer from FCNB of account holder c) Transfer of funds between NRE Accounts of different persons held with same AD or different ADs d) All of the above

7

Which of the following debit transactions are permitted from NR (E) account? a) b) c) d)

8

Local withdrawal Transfer to any other NR (E) account of the account holder Transfer to FCNB account of the account holder All of the above

Which of the following credit transactions are allowed in NR (E) Account? a) Proceeds of remittance in freely convertible foreign currency received from abroad in an approved manner b) Proceeds of foreign currency/bank notes/travelers cheques etc. by the account holder during his temporary visit to India c) Interest/dividend earned on Govt. Securities purchased from the funds in NR (E) Account d) All of above

9

Which of the following debit transactions, ADs can authorize in NR (E) account? a) Permissible investments in shares/security/commercial paper of Indian companies b) Purchase of immovable property c) Both (a) & (b) d) None of the above

10

Which of the following debit transactions, ADs can allow in NR(E) account subject to report to RBI on Form A 2? a) Remittance to the country of residence of account holder b) Sale of foreign currency travelers cheques, to the account holder or dependents on production of evidence of travel abroad c) Sale of F.C.Notes upto the equivalent of USD 2000 d) All of above

247


11

NRE Savings Bank opened with zero balance will be operationalised if the remittance is received in the account within a period of _______days a) 30 days c) 21 days

12

Investment other than in Agr. plantation and real estate Direct investment on non-repatriation basis Acquisition of house/flats for their residential uses subject to FEMA All of above

ADs can grant FC loans to the NRIs minimum to the tune of Rs._______ a) b) c) d)

14

60 days None of the above

ADs can grant loan to NRE for the following purpose a) b) c) d)

13

b) d)

USD25000/GBP15000/EURO 20000 USD15000/GBP10000/EURO 10000 USD30000/GBP20000/EURO 25000 No limit

ADs can grant FC loans to the NRIs against their deposits maximum to the tune of Rs._______ a) Equivalent to Rs.50 lacs c) Equivalent to Rs. 20 lacs

15

ADs can grant _______to NRE account holders a) Overdraft c) Either a or b

16

b) d)

Demand Loan None of these

If a non-resident account holder returns to India for permanent settlement, his account will be designated as _______ a) Resident Account c) Either ‘a’ or ‘b’

17

b) Equivalent to Rs.100 lacs d) No limit

b) d)

RFC ( HCD) RFC ( Domestic)

TDR/STDR under NRE Account can be opened for a period of : a) b) c) d)

Minimum1 year and maximum 10 years Minimum1 year and maximum 5 years Minimum6 months and maximum 10 years None of the above

248


18.

Which of the following statement/s is/are true in the case of PIOs : a) To Exclude Pakistan, Bangladesh for Bank Accounts b) + Srilanka for investment in firms; c) + Afghanistan, Bhutan, China, Iran, Nepal, Sri Lanka for acquisition / transfer of immovable property d) All of the above.

19.

What type of transaction is permitted by the Power of Attorney Holder ? a) b) c) d)

20.

Withdrawals for local payments and Remittance to the account holder himself under a specific power. Facilitate investments in India in case NRI is permitted to do the same All of the above.

What type of transaction is not permitted by the Power of Attorney Holder ? a) Repatriate funds held in accounts outside India for any other purpose b) make payment of gifts on behalf of the account holder c) transfer funds from the said account to another NRE account. d) All of the above

21. NRI/PIO may remit an amount up to USD one million, per financial year, out of the balances held in his Non- Resident (Ordinary) Rupee (NRO) account / sale proceeds of assets (inclusive of assets acquired by way of inheritance or settlement), for all bonafide purposes, subject to a) b) c) d)

the satisfaction of the Authorized Dealer bank, on production of an undertaking by the remitter, certificate by a Chartered Accountant in the formats prescribed by CBDT All of the above.

KEY TO ASSIGNMENT – 1(IB) 1 6 11 16

d d b c

2 7 12 17

d d d b

3 8 13 18 21

d d a d d

4 9 14 19

c c b d

5 10 15 20

c d c d

249


International Banking ASSIGNMENT –2 ( FCNB ) 1

Foreign Currency Non-Resident (Bank) account can be opened in ____designated currencies a) 1 c) 3

2

b) d)

2 6

Which are the new currencies permitted for opening FCNR (B) account? a) USD, GBP c) INR, GBP

b) d)

AUD, EURO Can Dollar, AUD

3

The following types of accounts can be opened under FCNR (B)

4

a) S/B b) C/A c) TDR/STDR d) All of above FCNR (B) account can be opened for a minimum period of _____year a) 1 c) 3

5

b) d)

2 4

Interest on FCNR (B) deposit for a period of _______is calculated on actual number of days without any compounding effect a) 1 year c) 3 years

7

2 5

The maximum period for which FCNR (B) account can be opened is _____years a) 1 c) 5

6

b) d)

b) d)

2 years 5 years

Interest on FCNR (B) deposit for a period of _____is calculated for every block of 180 days and thereafter for the remaining actual number of days with compounding effect a) More than 1 year c) More than 3 years

b) d)

More than 2 years More than 5 years

250


What is the minimum amount of USD/GBP/EURO deposit, (designated foreign currency) under FCNR (B)? a) 500 c) 2000

9

GMU Kolkatta Respective RBO

b) d)

Weekly Monthly

b) d)

14 28

For premature withdrawal under FCNR (B) deposit, interest is payable ____% less than the rate applicable to the period for which the deposit remained with the bank a) 0.5 c) 1.5

14

b) d)

Deposit under FCNR (B) which remained overdue for more than _____days, cannot be renewed from the date of maturity a) 7 c) 21

13

200000 500000

The reporting of FCNR (B) transactions to GMU Kolkatta is _____ a) Daily c) Fortnightly

12

b) d)

Transactions pertaining to FCNR (B) will be reported to _____ a) RBI c) Respective LHO

11

1000 5000

Minimum amount of JPY _____currency can be accepted as deposit under FCNR (B) a) 100000 c) 300000

10

b) d)

b) d)

1.0 No penalty is to be levied

If deposit under FCNR (B) is withdrawn before the completion of one year from the date of deposit, what interest is payable to the depositor? a) 1% less than contract rate c) No interest to be paid

b) d)

2% less than contract rate None of above

251


At the end of each calendar quarter, branches are reporting to GMU Kolkatta through Quarterly Statement – 1, pertaining to ______ a) b) c) d)

16

Currency wise balances of FCNR (B) Deposits Transfer of FCNR (B) Interest paid balance Both (a) & (b) None of above

At the end of each calendar quarter, branches are reporting toGMU Kolkatta through Quarterly Statement – 2, pertaining to ______ a) b) c) d)

17

Currency wise balances of FCNR (B) Deposits Transfer of FCNR (B) Interest paid balance Both (a) & (b) None of above

Which of the following statement is not correct in the case of FCNR(B) accounts: a) Interest is linked to LIBOR of USD b) Interest rates regulated by RBI. No bank can pay more interest. c) Interest is linked to LIBOR of respective currencies d) Both ‘b’ & ‘c’

18. Mr. Sharma comes to India on a temporary visit. He wants to open FCNB deposit for USD 25000/-. He tenders USD currency notes for this purpose. He also has FCTC for USD 10000 with which he wants to open an NRE account. How will you handle the transaction ? a) b) c) d) e)

NRIs during their temporary visits to India can deposit FCNotes & FCTCs in their accounts as also open new accounts with FCN & FCTC. Bank to verify and ensure that FCN in excess of USD 5000 FCTC in excess of USD 10000, FCN+FCTC in excess of USD 10000 are declared in CDF. Bank to ensure that the customer continues to be NRI. Preclosure of FCNB issued against FCN/FCTC will not be at TT buying rates hence noting to be given on the FCNB deposit receipt. All of the above are applicable.

19. Conversion of NRE TDR/STDR to FCNB or Vice versa before maturity attracts penal interest provisions as usual : a)

True

b)

False

20. On account of NRI returning to India, FCNR/ NRE Term deposit can continue till maturity : a) True b) False

252


KEY TO ASSIGNMENT – 2 (IB) ( FCNB ) 1 6 11 16

d a a b

2 7 12 17

d a b a

3 8 13 18

c b b e

4 9 14 19

a a c a

5 10 15 20

c b a a

253


International Banking ASSIGNMENT – 3 RFC ACCOUNTS 1

NRI returning to India, can open ________account in foreign currency a) NRE c) RFC (HCD)

2

2000 5000

b) d)

C/A All of above

Returning Indian who has been NRI for minimum one year. Joint (Both returning Indians to be eligible) Only first applicant to be returning Indian Both (a) & (b)

Advance value (In Rs.) is calculated at ______rate in case of sanctioning rupee loan against balance held in RFC (HCD) account a) Notional c) TT Buying

7

b) d)

RFC (HCD) account can be maintained in ______name of returning Indians a) b) c) c)

6

USD EURO

RFC (HCD) account can be opened as _____account a) S/B c) TDR

5

b) d)

The minimum deposit in USD under RFC (HCD) is ______ a) 1000 c) 3000

4

NRO All of above

Resident Foreign Currency (Home Coming Deposit) account can be opened in our bank in_______only a) Rupees c) GBP,USD,EURO

3

b) d)

b) d)

TT Selling FCTC buying

RFC (HCD) scheme replaced the earlier ______scheme a) NRE c) FCNR (B)

b) d)

NRO RIFEE

254


8

Depositor on attaining the status of NRI again, would be eligible to transfer the balances of RFC (HCD) account to _______account a) NRE c) Both (a) & (b)

9

b) d)

FCNR (B) None of above

Balances under RFC (HCD) are exempted from _____requirements a) CRR c) Both (a) & (b)

b) d)

SLR None of above

10

Tax on interest income from RFC (HCD) is exempted till NRI remains _______ a) Resident but not ordinarily resident b) NRI c) PIO d) None of above

11

A person resident in India may open an account in foreign currency under ________scheme

12

a) Resident Foreign Currency (Home Coming Deposit) b) Resident Foreign Currency (Domestic) c) Either of (a) or (b) d) None of above Accounts under RFC (Domestic) will be opened as ______ a) S/B c) TDR

13

C/A STDR

The account under RFC (Domestic) can be maintained in ______currencies only a) b) c) d)

14

b) d)

USD, GBP, EURO USD, JPY, GBP EURO, USD, JPY GBP, EURO, JPY

The minimum balance required for opening the account under RFC (Domestic) scheme in USD and EURO currencies is _______ a) 250 c) 750

b) d)

500 1000

255


The minimum balance required for opening the account under RFC (Domestic) scheme in GBP currency is _______ a) 250 c) 750

16

b) d)

C&I DBD

b) d)

Fixed Notional FCTC buying

A small legend “____________” is branded on the reverse of each cheque of cheque book issued to the account holder of RFC (Domestic) a) Name c) Both (a) & (b)

20

200000 No limit

The transactions under RFC (Domestic) account will be at _____rate a) TT Selling c) TT Buying

19

b) d)

The balances of all the accounts opened under RFC (Domestic) scheme will be classified in ____segment a) IB c) P

18

500 1000

Under RFC (Domestic) Account, the maximum balance in the designated currencies can be upto _______ a) 100000 c) 500000

17

b) d)

b)

Purpose d) None of above

Consequent upon change of status from resident to non-resident, the balances in RFC (Domestic) account can be transferred to ______account a) NRO c) FCNR (B)

b) d)

NRE Both (b) & (c)

256


KEY TO ASSIGNMENT – 3 (IB) ( RFC ACCOUNTS) 1 6 11 16

c a b d

2 7 12 17

b d b c

3 8 13 18

a c a b

4 9 14 19

c c b b

5 10 15 20

d a a d

257

STATE BANK LEARNING CENTER, PANCHKULA INTERNATIONAL BANKING ASSIGNMENT-4 MISC 1

For conducting forex business, _______categories a) A & B c) Both (a) and (b)

2

7

c) d)

FC Note selling rate FCTC selling rate

b) d)

Bill Selling C.N.Selling

b) d)

Bill Selling C.N.Selling

b) d)

Bill Buying T.C.Buying

For negotiation of export bills, which rate will be applicable: a) T.T.Buying b) Bill Buying c) D.D.Buying d) T.C.Buying For payment of DDs drawn on us, which rate will be applied: a) T.T.Buying c) DD Buying

8

C-1 & C-2 None of above

When our Nostro Account has already been credited, which rate will be applicable: a) T.T.Buying c) D.D.Buying

6

in

For outward remittance, arising out of handling import bills by way of retirement of documents under L/C, which rate will be applicable: a) T.T.Selling c) T.C.Selling

5

categorised

For advance remittance Imports, which rate will be applied: a) T.T.Selling c) T.C.Selling

4

are

Which of the following rates is the most favourable to the customer ; a) TT selling rate b) Bill selling rate

3

b) d)

our branches

b) d)

Bill Buying T.C.Buying

For purchasing clean instruments or sending them for collection, which type of instruments are considered as ineligible: a) Mutilated c) Post-dated

b) d)

Stale All of above 258


9

The Cooling period pertaining to collection of clean instruments is treated between: a) 10 to 14 days c) 10 to 21 days

10

b) d)

Under Cheque Truncated System (CTS), cheque in original are sent to: a) FD Kolkatta c) Respective ZO

11

b) d)

Respective LHO Not sent

In case, cheque is returned unpaid under CTS, ___________would be sent to Singapore Branch. a) Original Cheque c) Image Return Document

12

10 to 15 days None of above

b) d)

Zerox copy of cheque None of above

Nostro account means a) “Our Account with you” b) Foreign Currency account maintained by us with a foreign bank/branch abroad c) Both a & b are correct d) None of the above

13

Foreign Department (FD), Kolkatta has been renamed as a) b)

14

Global Link Services Global Marketing Unit

c) d)

None of these No change

What is the difference between a Forex “A” category branch & Forex “B” category Branch; a) “A” Category branches can open and maintain Nostro Accounts while “B” Category branches can not. b) “A” category branches can do both Trade & Service related transactions while “B” category branches can not c) “A” category branches can only open and maintain Nostro accounts, while “B” Category branches operate on the Nostro accounts) d) “A” category branches can do all types of transactions while “B” category branches can only handle service related transactions.

259


15 A foreign draft in case of Inward Remittance for value equal to/exceeding USD ________must bear 2 signatures. a) c)

1,000 10,000

b) d)

5,000 50,000

16 If the advice is not received within one month from the payment of draft, in case of Inward Remittance, the matter will be reported to: a) c) 17

Concerned bank GMU Kolkatta

b) d)

Correspondent Bank Not to be reported

Which is not true as regard to the basis of quoting forex rates:

a) Banks deal in currencies – They buy & Sell currencies like any commodity b) Currencies are bought cheaper and sold costlier so that Banks can make profits c) The inter bank rates are basis for quoting rates to the customers d) All are correct 18

Which of the followings is not true :

a) Rates for small value transactions are fixed at the beginning of the day – called Card rates b)Card rates are applicable for transaction with rupee value of < 10 lacs c) For transactions of > 10 lacs the inter bank rate prevalent at that time forms the basis- referred to as online rates d) Both card rates and on-line rates are obtained through IFM e) All are correct

260


KEY TO INTERNATIONAL BANKING ASSIGNMENT- 4 MISC 1 6 11 16

c b c c

2 7 12 17

a a c d

3 8 13 18

a d b d

4 9 14

b b a

5 10 15

a d a

261


International Banking ASSIGNMENT – 5 REMITTANCE PRODUCTS 1

SBI-Express product is a---------a) Inward Remittance Product c) Both a & b

b) d)

Outward Remittance Product Product for Exporters

2. Similar product on the lines of SBI-Express Remit (US) has been rolled out for the remitters in following country/ countries : a) USSR c) Australia 3

b) d)

UK UK & USSR

What is the main objective of launching SBI-Express product? a) INR funds flow from Gulf b) Funds flow from any country c) INR funds from Gulf and other countries d) None of above

4

What is the size of minimum remittance (per transaction) under SBI-Express? a) Rs 500 c) Rs 50000

5

b) d)

Rs 1000000 for Middle East No such restriction

What is the per calendar quarter limit of remittance for Blue Collared Workers/ Professionals under SBI-Express? a) Rs 5 Lacs/ 10 Lacs c) Rs 5 Lacs/ 15 Lacs

7

Rs 5000 No such restriction

What is the size of maximum remittance (per transaction) under SBI-Express? a) Rs 50000 c) Rs 500000

6

b) d)

b) d)

Rs 10 Lacs/ 15 Lacs Rs 10 Lacs/ 25 Lacs

What is the per calendar half year limit of remittance for Blue Collared Workers/ Professionals under SBI-Express? a) Rs 5 Lacs/ 10 Lacs c) Rs 5 Lacs/ 15 Lacs

b) d)


262


What is the per calendar half year limit of remittance for Blue Collared Workers/ Professionals under SBI-Express? a) Rs 5 Lacs/ 10 Lacs c) Rs 7 Lacs/ 40 Lacs

b) d)


9 When was new Remittance product “SBI Express Remit” launched? a) 01-02-2005 c) 01-01-2006

b) d)

25-02-2005 01-12-2005

10 “SBI Express Remit” has been launched with the objective of------a) b) c) d)

Targeting NRIs Targeting NRIs in US Targeting both NRIs and residents None of the above

11 What are the purposes covered for remittance under “SBI Express Remit”? a) Family maintenance b) Transfer of funds to remitter’s NRI a/c a) Remittances favouring foreign tourists visiting India b) All the above 12 In which currency funds are remitted under “SBI Express Remit” (US)? a) USD, GBP,EURO d) USD

b) INR d) USD,GBP,EURO,JPY

13 What is the quantum of remittance (Min. & Max ), per day, under“SBI Express Remit”? a) USD 100 & 10000 c) USD 500 & 10000

b) d)

USD 50 & 5000 USD 100 & 1000

14 What is the max. aggregate remittance limit (per week) under“SBI Express Remit”? a) USD 10000 c) USD 20000

b) d)

USD 15000 USD 30000

15 What is the max. aggregate remittance limit (per month) under“SBI Express Remit”? a) USD 10000 c) USD 25000

b) d)

USD 15000 USD 30000 263


16 What is the maximum aggregate remittance limit (per quarter ) under“SBI Express Remit”? a) USD 50000 c) USD 80000

b) d)

USD 75000 USD 40000

KEY TO ASSIGNMENT –IB(REMITTANCE PRODUCTS- I) 1 6 11 16

a c d c

2 7 12

b d d

3 8 13

c c b

4 9 14

a b b

5 10 15

b b d

264

STATE BANK LEARNING CENTER, PANCHKULA International Banking ASSIGNMENT -6 REMITTANCE PRODUCTS-II 1 What is the maximum aggregate remittance limit ( per half year) under “SBI Express Remit”? a) USD 100000 c) USD 130000

b) d)

USD 120000 USD 150000

2 What is the maximum aggregate remittance limit ( per year) under “SBI Express Remit”? a) USD 160000 c) USD 175000

b) d)

USD 180000 USD 150000

3 How many times remittances are permitted (per week/month) under “SBI Express Remit”? a) 4/6 c) 2/8

b) d)

3/6 1/4

4 How many times remittances are permitted (per quarter/half year) under “SBI Express Remit”? a) 4/6 c) 10/20

b) d)

8/16 16/24

5 How many times remittances are permitted (per year) under “SBI Express Remit”? a) 30 c) 50 6

b) d)

40 60

How many accounts can be used for debit instructions under “SBI Express Remit”? a) 3 c) 2

b) d)

1 4

7 What is the transaction fees under “ SBI Express Remit”? a) b) c) d)

$ 2 for all remittances No fee is chargeable Rs.100 per transaction $ 1 for remittance $ 50 to $ 99, nil for $ 100 & above 265


8 What are the issue and courier charges for demand drafts under “SBI Express Remit”? a) b) c) d)

$ 2 for all remittances Rs 50 for $50 to $ 1000, nil for higher value $ 1 for remittance $ 50 to $ 99, nil for $ 100 & above No charges

9 Which of the followings is correct in the case of Instant Transfer ? a) It is a real time rupee remittance facility from SBI branches in 18 countries to beneficiary’s account maintained in any branch in India; b) It is available to branches of Associate Banks through NEFT; c) Available to non-account holders of our foreign branches at certain centres d) All of the above. 10.

The nodal branch for Western Union Tie Up is ? a) Overseas Branch Mumbai c) Overseas Branch, Calcutta

11.

b) NRI Branch, Kochi d) D. N. Road, Mumbai

Which of the followings is true in case of a Western Union Tie Up ? a) Remitter remitting money abroad from WU Counters is given MTCN which is a ten digit secret number: b) Beneficiary to go to any authorized branch with valid proof of identity; c) WU is responsible for ensuring compliances under RBI guidelines and AML measures at the send side of transaction: d) a & b e) All of the above

12 What is the maximum number of transactions a receiver can receive in a calendar year through WU? a) 6 c) 12 13

b) d)

10 No such restriction

What is the size of maximum remittance (per transaction) under WU? a) Rs 50000/ USD 1000 c) Rs 500000/ USD 10000

b) d)

Rs 120000/ USD 2500 No such restriction

266


What is the maximum cash amount paid out to the receiver under WU? a) Rs 100000 c) Rs 120000

b) d)

Rs 50000 No such restriction

15 e-Remit is : a) A web based product offered at SBI Singapore for making remittances to India b) This facility can be used by all individuals who are residents of Singapore c) Customers of banks which are members of eNETS payment system can use this facility worldwide d) All are correct e) Only ‘a’ & ‘b’ applicable

KEY TO ASSIGNMENT –IB-6 (REMITTANCE PRODUCTS- II)

1 b

2

d

3

b

4

d

5

a

6

a

7

d

8

b

9

d

10

b

11

e

12

c

15

d

13

b

14

b

267


International Banking Assignment-7 Release of Foreign Exchange-I 1

Foreign currency travelers cheques are valid for _____from the date of issue a) 1 year c) 5 year

2

b) d)

XOS return None of above

b) d)

A2 A4

In case of outward remittance through TTs/SFMSs/DDs, which form will be signed by applicant, if remittance is exceeding USD 5000 for payment against non-imports? a) A 1 c) A 3

6

Payment Voucher None of above

In case of outward remittance through TTs/SFMSs/DDs, which form will be signed by applicant, if remittance is exceeding USD 500 for payment against imports? a) A 1 c) A 3

5

b) d)

After encashing the purchase transaction of FCTC, it will be entered in: ____________ a) R-return c) BEF statement

4

2 year Infinite period

While encashing FCTC, passport no. etc. will be noted down on _________ a) Traveller cheque c) Zerox copy of TC

3

b) d)

b) d)

A2 A4

Which is not true in case of release of foreign exchange for foreign travel: a) Xerox copies of passport and visa to be obtained in case of non customer b) In case of account holders the same to seen/verified and details noted on standard application form c) The customer should produce the air ticket for the purpose of verification d) The customer should not be asked to produce the air ticket

268


7

Currency notes to Indians going abroad can be issued upto USD _____or its equivalent per person, except persons going to Iraq, Libya, Nepal & Bhutan a) 1000 c) 5000

8

9

12

b) d)

Specialised Training All of above

Indians going abroad can take outside India / or bring into India (other than Nepal & Bhutan) Indian currency notes upto an amount not exceeding Rs. _____ per person a) 1,000 c) 5,000

11

3000 10000

Authorised Dealers (ADs) can release foreign exchange upto a maximum of USD ________ for Business Visit a) 10000 b) 15000 c) 20000 d) 25000 ADs can issue upto USD 25000 for_______ a) International Seminars c) Study Tour

10

b) d)

b) d)

7,500 10,000

For medical treatment abroad, ADs can issue foreign exchange upto USD ______ : a) 25000 b) 50000 c) 75000 d) 100000 For studies abroad ADs can issue foreign exchange upto USD _______ to meet expenses towards tuition fee and books etc : a) USD 100000/- per academic year from close relatives in India b) Upto USD 100000/- per financial year from balances held in their NRO accounts c) Both a & b d) Either of a & b

13

ADs are empowered under FEMA to release foreign exchange upto USD _______ for taking up employment abroad a) 10000 c) 100000

b) d)

50000 200000

269


For private visits to any country (except Nepal and Bhutan), ADs can release foreign exchange upto USD _______, without any age limit a) 10000 c) 100000

15

b) d)

50000 200000

A person going abroad on private visit/s can be released foreign exchange not exceeding USD 10000 as under: a) Per visit per member of the family without any age limit for each visit, irrespective of number of visits in the year b) Per annum per member of the family without any age limit, irrespective of number of visits c) Per annum per member (only adult) of the family irrespective of number of visits d) None of these

16

ADs can issue foreign exchange upto USD ______for meeting the maintenance expenses of close relatives residing abroad. a) 1000 c) 10000

b) d)

5000 100000

17

How much foreign exchange can be gifted by a resident Indian individual to close relatives/ friends abroad ? a) USD 1000 b) USD 5000 c) USD 10000 d) USD 200000

18

FEMA has empowered ADs to issue foreign exchange for a maximum of USD _______ for subscription to newspaper and magazine etc. a) 5000 c) 25000

19

15000 100000

How much foreign exchange can be released by ADs for remittance of Prize Money for sports? a) USD 25000 c) USD 75000

20

b) d)

b) d)

USD 50000 USD 100000

Upto USD _______ per person can be released by ADs to a person going abroad on emigration a) 25000 c) 75000

b) d)

50000 100000

270


21

Currency notes to Indians going to Iraq & Libya can be issued upto USD _____or its equivalent per person a) 1000 c) 5000

22

b) d)

3000 10000

Currency notes/ coins to Indians going to Iran, Russian federation and other Republics of Commonwealth of Independent States can be issued upto USD _____or its equivalent per person a) 5000 c) 10,000

b) d)

3000 Full foreign exchange

KEY TO ASSIGNMENT – IB 7 Release of Foreign Exchange-I 1 6 11 16 21

d c a d c

2 7 12 17 22

b b c d d

3 8 13 18

a d c c

4 9 14 19

a d a a

5 10 15 20

b b b d

*****

271


International Banking ASSIGNMENT – 8 RELEASE OF FEX-II 1 How many days in advance can a resident seek release of foreign exchange before proceeding abroad : a) To be purchased in a way that the same to be used within 180 days of issue b) If not used within 180 days, the same should be surrendered to the AD c) Only ‘ a’ is applicable d) Both ‘a’ & ‘b’ are applicable 2 What is the maximum limit upto which a resident can retain foreign currency notes ? a) c)

USD 1000 USD 2000

b) d)

USD 5000 No limit

3 What is the maximum limit upto which a resident can retain foreign currency coins? a) c)

USD 1000 USD 10000

b) d)

USD 5000 No limit

4 Name the card of our bank that offers freedom to shop anywhere in the world? a) c)

SME Credit Card Vishwa Yatra Card

b) d)

Kisan Gold Card Artisan Credit Card

5 For encashing AMEX FCTC, following instructions have been issued : a) All FCTC handling branches to obtain a Merchant Code from Amex by Code which will be retained as a permanent record at the branch. b) Each time prior to encashment of the FCTC, the branch to log on to AEB’s online Authorization Home page and input the particulars of

FCTC

and the merchant code allotted to the branch. e) If the FCTC under reference is genuine, the branch will get an approval code online which should invariably be mentioned on FCTC . f) The branch will then pay the FCTC, if it is otherwise in order. g) All are applicable. 272


6 SBI Vishwa Yatra Card can be used at a) b) c) d) e)

Visa Electron merchant establishments worldwide Visa Electron merchant establishments worldwide (ex. Nepal/ Bhutan) Visa ATMs worldwide. Both ‘a’ & ‘b’ Both ‘b’ & ‘c’

7 SBI Vishwa Yatra Card can be used in which currency? a) c)

USD Euro

b) d)

GBP All of above

8 What is the minimum amount for which Vishwa Yatra Card can be initially loaded? a) b) c) d)

USD 100 250GBP, 400EURO and USD 500 USD 1000 USD 10000

9 What is the maximum amount for which Vishwa Yatra Card can be used besides usual USD ceiling? a) b) c) d)

USD 100 USD 500 USD 1000 GBP & EURO equivalent of USD 10000

10 Which rate will be applied while selling Vishwa Yatra Card? a) c)

TT Selling TT Buying

b) d)

Bill Selling TC Buying

11 Which rates will be applied for purchasing the unspent balance in Vishwa Yatra Card? a) c)

Bill Buying TT Buying

b) d)

Bill Selling TC Buying

12 Refund of Vishwa Yatra Card is permitted after _____working days after return of customer in India a) c)

3 9

b) d)

6 12 273


13 Under Liberalised Remittance Scheme of RBI, resident individuals can remit upto USD _________ per calendar year a) c)

5000 200000

b) d)

15000 35000

14 For availing the facility of Liberalised Remittance Scheme, the resident individual must have maintained the account with the bank for a minimum of _____years a) c)

1 3

b) d)

2 5

15 The transaction under Liberalised Remittance Scheme will be reported by branches on______ a) c)

Monthly basis Half yearly

b) d)

Quarterly basis Not to be reported

16 International Credit Card can be used to meet foreign travel expenses upto----per annum prescribed under FEMA; a) c)

5000 10000

b) d)

15000 25000

17 What is the minimum reload amount for Vishwa Yatra Card ? a) c)

USD 100 USD 1000

b) 125GBP, 200EURO and USD 250 d) USD 10000

18 Transactions through Vishwa Yatra Card can be as under : a)

Cash withdrawal at ATM –minimum USD 100 and maximum USD1000 per day b) Transaction at Pos –min. no limit and max. upto balance in the card c) Both a & b are correct d) No restriction on min. or max. amount

*****

274


KEY TO ASSIGNMENT –8 (IB) RELEASE OF FEX-II 1 6 11 16

c e a c

2 7 12 17

c d b b

3 8 13 18

d b c c

4 9 14

c d a

5 10 15

e b a

*****

275

STATE BANK LEARNING CENTER, PANCHKULA International Banking ASSIGNMENT –9 (IB) LETTER OF CREDIT 1 Letter of Credit are subject to various articles of _______ a) N.I.Act b) UCPDC 600 c) Company’s Act d) None of above 2 In case of Letter of Credit, opening bank provides _________ a) Cash Credit b) Term Loan c) Undertaking to pay d) Bank Guarantee 3 The beneficiary under a letter of credit is a) the bank opening the credit c) the confirming bank

b) the customer of the opening bank d) the exporter

4

A letter of credit is addressed to a) the beneficiary b) the negotiating bank c) the reimbursing bank d) none

5

Which type of L C was removed from UCP 600 ? a) Confirmed L C b) Revolving LC c) Green Clause LC d) Revocable LC

6

UCP rules are framed by a) ICC c) WTO

b) UNO d) G 7 Countries

7 Red Clause Letter of Credit refers to special clause authorizing for _______ a) b) c) d)

Transfer Renewal without amendment Advance to beneficiary upto shipment Advance to beneficiary before shipment

8 Green Clause Letter of Credit refers to special clause authorizing for ______ a) b) c) d)

Transfer Renewal without amendment Advance to beneficiary before shipment Advance to beneficiary upto shipment

276

STATE BANK LEARNING CENTER, PANCHKULA 9 Back to Back Letter of Credit refers to special clause that L/C is issued with _________ a) Transferability c) Renewal

b) d)

On security of another L/C Advance to beneficiary upto shipment

10 RBI approval for opening the Letter of Credit is to obtained if the tenor of Bills of Exchange exceeds _____days from the date of Bill of Lading a) 60 c) 180

b) d)

90 360

11 Import Letter of Credit opened is advised and restricted for negotiation to _ a) Our Foreign Office c) GMU Kolkatta

b) d)

Banks with agency arrangements None of above

12 The terms of an irrevocable Letter of Credit can be amended if ______agree a) Beneficiary c) Opening Bank

b) d)

Applicant All of above

13 If documents are not received within _____days after validity date, the documentary credit will be deemed as expired a) 15 days c) Two months

b) d)

One month Six months

14 Under UCP 600 the phrase ‘Reasonable time’ of UCP 500 was with a) 5 days c) 5 banking days

substituted

b) 7 banking days d) 10 days

15 Back-to-Back LC is issued to a) Importer Customer b) Exporter Customer c) Exporter Customer who has received Export LC d) None of these 16

In case of Confirmed LC, confirmation will be added by a) LC Issuing Bank b) LC Advising Bank c) Reimbursement Bank d) None of these

277


17

Incoterms cover a) ownership and transfer rights b) Contracts of carriage c) rights and obligations of parties to contract of sales d) none of these

18 The price quoted by the seller for the product a) will vary depending upon the incoterm chosen b) is irrespective of incoterm c) will be the base price; the effect of incoterm to be added later d) none of these 19 UCPDC had been first brought out by ICC in the year a) 1919 b) 1975

b) 1933 c) 2007

20 In a letter of credit, the advising Bank is responsible for a) b) c) d)

Financial standing of the issuing bank Financial standing of the applicant Payment of the LC amount Authenticity of the LC

KEY TO ASSIGNMENT –9 (IB) LETTER OF CREDIT 1 6 11 16

b a b b

2 7 12 17

c d d c

3 8 13 18

d d b a

4 9 14 19

a b c b

5 10 15 20

d c c d

278


International Banking ASSIGNMENT –10 (IB) FINANCING IMPORTS & FC FUNDING 1 Supplier’s Credit refers to credit for ______into India extended by overseas suppliers with a maturity less than 3 years a) Export c) Both (a) & (b)

b) d)

Import None of above

2 Buyer’s credit refers to loans for payment of imports into India arranged by importer’s bank or financial institution with a maturity less than _____ a) One year c) Three years

b) d)

Two years Five years

3 Buyer’s credit and Supplier’s credit for 3 years and above comes under the category of _______ a) L/C c) B/G

b) d)

ECB None of above

4 The settlement of funds in SBI’s Supplier’s Credit Product is done within _____days of shipment a) 60 c) 180

b) d)

90 360

5 Buyer’s Credit can be arranged by our branches for the importer’s client by issuing ___________favouring our Foreign Offices/Foreign Banks a) Guarantee c) Letter of Comfort (LOC)

b) d)

Letter of Undertaking (LOU) Any one of above

6 For import of non-capital goods, Guarantees, Letter of Undertaking (LOU) and Letter of Comfort (LOC) can be issued for a period of_____ a) 1 year c) 3 years

b) d)

2 years 5 years

7 For import of capital goods, Guarantees, Letter of Undertaking (LOU) and Letter of Comfort (LOC) can be issued for a period of _______ a) 1 year c) 3 years

b) d)

2 years 5 years 279


8 The amount of Buyer’s Credit should not exceed USD ______million per import transaction a) 10 b) 20 c) 30 d) 50 9 Maximum interest (all in cost ceilings) in Trade Credits ( Supplier’s Credit & Buyer’s Credit) is as under a) LIBOR+ 350bps c) LIBOR+ 200bps

b) d)

LIBOR+ 100bps LIBOR+ 250bps

10 All in cost ceilings in Trade Credits ( Supplier’s Credit & Buyer’s Credit) is applicable as prescribed by a) FEDAI c) RBI

b) d)

Banks have freedom to fix None of above

11 Which is not applicable in the case of FCNB (B) Loan Scheme a) Can be extended for financing WC & TL b) Banks have freedom to fix interest rate, tenor and purpose of loan c) RBI/GOI permission required for sanction d) Loans cannot be used for personal purpose and acquisition of consumer durables 12 FCNR(B) Loans can be extended in following currencies a) USD,AUD, GBP,YEN c) USD,AUD, GBP,EURO

b) d)

USD,EURO, GBP,YEN USD,CAD, GBP,YEN

13 FCDL Loan is normally given for a period of a) 6 months to 12 months c) 3 months to 11 months

b) d)

3 months to 12 months None of above

14 FCTL Loan is normally given for a period of a) b) c) d)

1 to 5 years 3 to 5 years 1 to 3 years, and upto 5 years with the permission of HO None of above

280


15 Which is not applicable in the case of Swing Facility a) It envisages conversion from foreign currency to rupee at the option of borrower b) Normally conversion to take place at the time of interest re-setting c) Conversion on any other date not permitted d) Conversion on any other date permitted with prepayment penalty 16 Which is not applicable in the case of ECB-Automatic route a) Prior approval from RBI not required b) AD to process application , give approval and forward the application to RBI c) Loan to be released only after RBI allots the number d) ECB can be utilized for repayment of existing Rupee loans 17 The maximum amount of ECB that can be raised by a corporate, except Corporate in the Hotels, Hospitals and Software sectors, in a financial year is --a) USD200 million c) USD500 million

b) d)

USD300 million USD100 million

18 The maximum amount of ECB that can be raised by a corporate in the Hotels, Hospitals and Software sectors, in a financial year is -----a) USD200 million c) USD500 million

b) d)


19 ECB above USD 20 million and upto USD 500 million or equivalent is sanctioned for a period with minimum average maturity of---------- years a) 3 years c) 10 years

b) d)

5 years 7 years

20 ECB upto USD 20 million or equivalent is sanctioned for a period with minimum average maturity of---------- years a) 3 years c) 10 years

b) d)

5 years 7 years

21 ECB upto USD --------- million or equivalent can have call/put option provided the minimum average maturity of 3 years is copiled before exercising the option a) USD250 million c) USD20 million

b) d)


281


KEY TO ASSIGNMENT – 10(IB) FINANCING IMPORTS & FC FUNDING 1 6 11 16 21

b a c d c

2 7 12 17

c c b c

3 8 13 18

b b c d

4 9 14 19

c c c b

5 10 15 20

d c c a

*****

282

STATE BANK LEARNING CENTER, PANCHKULA International Banking ASSIGNMENT –11 (IB) IMPORTS 1

The normal time limit for settlement of import payment is------ from the date of shipment a) 30 days c) 21 days

2

1 year Not required

b) d)

ENC STAT

b) d)

USD 100,000 None of these

Evidence of import/ Bill of Entry is to be submitted by the importer within a period of----from the date of remittance a) 21 days c) 30 days

7

b) d)

Non submission of evidence of import by the importers is to submitted to RBI at half yearly intervals ( June/ Dec.) in the case of imports exceeding USD---or its equivalent a) USD 25000 c) USD 50000

6

Monthly Half yearly

Non submission of evidence of import by the importers is to submitted to RBI in------return a) XOS c) BEF

5

b) d)

Documents evidencing import are to be preserved for ---- period from the date of verification, except cases under investigation a) 2 years c) 3 years

4

6 months None of above

Consolidated statement of Trade Credits is submitted to RBI at----- intervals a) Fortnightly c) Quarterly

3

b) d)

b) d)

3 months 6 months

Fully utilized Exchange Control Copy of Import Licence is to be retained bya) RBI c) AD

b) d)

Importer DGFT

283


Ads to permit advance payment in the case of a PSU/Deptt./ Undertaking of Central / State Govt for import of goods without insisting upon a bank guarantee up to----- . a) USD25,000 c) USD15,000

9

b) d)

USD500,000 USD100,000

If importer is unable to obtain bank guarantee and AD is satisfied about the track record and bonafide of the importer, the requirement of BG/Stand-by LC may be waived if the advance remittance for import of goods is upto---a) USD25,000 c) USD 200,000

10

b) d)

USD500,000 USD100,000

If a PSU/Deptt./ Undertaking of Central / State Govt. is not in a position to obtain a guarantee from the international bank of repute, it is required to seek specific waiver for the BG from _____if the advance remittance exceeds USD100,000 a) RBI c) M.O.F., Govt of India

b) d)

DGFT AD

11

Advance remittance permissible for import of services without BG is for--------a) USD25,000 b) USD500,000 c) USD50,000 d) USD100,000

12

Remittances against import of books can be received within a period of-----provided interest payment , if any , is as per instruction in this regard a) 12 months c) No time limit

13

b) d)

3 months 6 months

A no-objection certificate, Chartered Accountant’s certificate, Certificate of payment of I.T. are required for remittance against a) b) c) d)

Import under penalty Replacement import Import of films on lease/ rental basis Import of Aircraft/ Aircraft engine/ Helicopter on lease basis

284


14

Non submission of evidence of import by the importers in the case of imports upto USD 100,000 is to be followed up with the importer as under: a) Not required to be followed as per RBI guidelines b) To be followed as per Bank’s internal guidelines c) Both (a) & (b) are applicable

15

Which is not applicable in case of Diamond Dollar Account a) Customer to have good track record of 3 years and average annual turnover of Rs. 5 crores or above during 3 preceding licensing years b) Customer to apply through AD to RBI for approval c) Customer can have only max. 5 accounts d) Only a & b applicable e) All are applicable

16

When the imports are made in non- physical form, a certificate from------would serve the purpose of import evidence a) Chartered Accountant c) Authorised dealer

17

b) d)

RBI Exporter

Where the value of import on DP basis falls between USD 25000 and USD 100,000 and is for non-customer, the following document as an evidence of import may be obtained a) b) c) d)

Self declaration only A Certificate from Chartered Accountant A Certificate from Overseas exporter None of the above

18

Import licenses are normally issued for the ------ value of the goods to imported a) FOB b) CIF c) Insured d) None of the above

19

Discrepant documents under LC if not negotiated are to be sent for collection under Uniform Rules for Collection (URC 522) a) True b) False

285


Documents accompanying a usance bill of exchange will always be delivered against acceptance to the drawee a) True b) False

20

LC calls for ‘clean on board’ B/L. The B/L submitted has notation ‘on board’ without mentioning ‘clean’. Can the B/L be accepted as non-discrepant? a) Yes b) No

KEY TO ASSIGNMENT – 11(IB) IMPORTS 1 6 11 16

b b b a

2 7 12 17

c c c b

3 8 13 18

b d c b

4 9 14 19

c c c b

5 10 15 20

b c e a

*****

286

STATE BANK LEARNING CENTER, PANCHKULA International Banking ASSIGNMENT –12(IB) FORWARD CONTRACTS 1. Forward Contract can be booked for ______transactions a) Purchase c) Both (a) & (b) 2.

b) d)

Sale None of above

While booking forward contract, it has to be ensured that due date does not fall on ______ a) Saturday c) Public Holiday

b) d)

Sunday All of above

3. Forward contract should not be booked for ______ a) Import bills a) Advance remittance against exports

b) d)

Export bills None of above

4. Forward Exchange Cover Facility can not be provided against balance lying in _______ a) FCNRB c) NRE C/A Account

b) d)

NRE S/B Account Both (b) & (c)

5. The limit of Forward Contracts in case of Importer/Exporter is fixed on the basis of average of previous ______years or previous year turnover, whichever is higher a) 2 c) 4

b) d)

3 5

6. In case an Importer/Exporter desire higher limit than the one fixed by AD, they will have to take approval from _____ a) FICCI c) Commerce Ministry

b) d)

Finance Ministry RBI

7. If an exporter wants to avail Forward Contract facility, his overdue bills should not exceed ___% of the turnover a) 10 c) 20

b) d)

15 25

287

STATE BANK LEARNING CENTER, PANCHKULA 8. A forward purchase contract can be booked if the applicant submits: a) Firm contract signed by buyer and seller b) Communication from buyer accepting seller’s quotation and exporter’s undertaking to produce the contract within one month from the date of booking c) Irrevocable Letter of Credit d) Any of the above 9. Branch has to contact the customer _____days prior to the date of expiry of forward contract a) 3 c) 7

b) d)

5 10

10. Statement of outstanding Forward Contract will be sent to FD Kolkatta at _____intervals on Form _____ a) Monthly, 106 c) Half-Yearly, 126

b) d)

Quarterly, 116 Yearly, 136

11. Before booking a forward sale contract, it should be ensured that the importer submits ________ a) A firm order/Import Elcee/Import Collection bill b) Invoice c) Bills of Exchange d) Any one of above 12. In case of import bill, the delivery period should not be more than _____days from the date of shipmen a) 60 c) 180

b) d)

90 360

13. ADs while booking a forward sale contract should ensure that…. a) b) c) d)

Import items are freely importable under current foreign trade policy Suitable limit for forward contract is sanctioned to the importer Both (a) & (b) None of above

14. In case of any exchange gain arising out of the cancellation of forward contract before due date, it will be passed on to the customers as under a) b)

The customer can opt for settlement of full gain on due date The customer can opt for upfront settlement of exchange gain at discounted rate (discount equal to PLR) by choosing option‘To Day’ 288

STATE BANK LEARNING CENTER, PANCHKULA c) d)

Both (a) & (b) Only a is applicable

15. A forward contract can be cancelled ________ a) c)

Prior to the expiry date Either of (a) or (b)

b) d)

On expiry date None of above

16. Following instruction/s are true in the case of Unusable contracts : a) Maximum time limit for cancellation of undelivered contracts – 7th working day if the contract involves pipeline transaction, otherwise 2nd working day b) No profit passed on if cancelled after due date c) All losses to customer in such cases d) All are applicable. 17. In case of any exchange loss arising out of the cancellation of forward contract, it will be recovered from the customers as under a) b) c) d) e)

The exchange loss on cancellation before maturity date to be booked upfront i.e. on cancellation date The amount recovered would be the loss discounted at simple savings bank rate for the intervening period The customer has the option to have settlement on maturity date Only a & b applicable All are applicable

18. A forward sale contract will be cancelled on ________rate a) c)

TT Buying Bill Buying

b) d)

TT Selling Bill Selling

19. A forward purchase contract will be cancelled on _____rate a) c)

TT Buying Bill Buying

b) d)

TT Selling Bill Selling

20. Part Cancellation of forward contract ______ a) b) c) d)

Can be done Cannot be done Can be done if a request from the customer is received None of above

289

STATE BANK LEARNING CENTER, PANCHKULA 21. While canceling a forward contract, the matter should be reported to GMU Kolkatta on______ a) c)

Same day 3rd day

b) d)

Next day 7th day

22. In case 15th day from the due date of a forward contract falls on Saturday or Public Holiday, the contract will be cancelled on _________ a) c)

Preceding working day Either of (a) & (b)

b) d)

Succeeding working day None of above

23. In case of Cross Currency Forward Contracts (CCFC), how many exchange risks are covered? a) c)

1 3

b) d)

2 4

24. Which type of exchange risks are covered under Cross Currency Forward Contracts (CCFC)? a) b) c) d)

Misc. Foreign Currency (MFC) against USD USD against rupee Both (a) & (b) None of above

25. Cross Currency Forward Contracts (CCFC) can be booked for a minimum amount of USD ________ a) c)

1,00,000 5,00,000

b) d)

2,00,000 10,00,000

26. In case of Cross Currency Forward Contracts (CCFC), minimum delivery amount should be equivalent to Rs. ______lac a) c)

5 15

b) d)

10 25

290


KEY TO ASSIGNMENT – 12 (IB) FORWARD CONTRACTS

1 6 11 16 21

c d a d a

2 7 12 17 22

d a c d b

3 8 13 18 23 26

c d c a b b

4 9 14 19 24

d c c b c

5 10 15 20 25

b b c c a

291

STATE BANK LEARNING CENTER, PANCHKULA International Banking ASSIGNMENT – 14 (IB) RETURNS 1

The information pertaining to inflows and outflows of foreign exchange is submitted by ADs to RBI through ______ a) XOS Statement c) BEF Statement

2

All branches dealing in forex A Category B Category Both (b) & (c)

R-Return is submitted _______ a) Once a week c) Once a month

4

b) d)

7th day and 21st day None of above

b) d)

GBP All currencies

R-Returns are now to be submitted to RBI ______, and should reach RBI within 7 calendar days of the relative fortnight a) Branch-wise c) Both (a) & (b)

7

Twice a week Twice a month

A separate R-Return (Nostro) and a separate R-Return (Vostro) for _____currency is to be submitted a) USD c) EURO

6

b) d)

R-Return is submitted on _____of the month a) Ist day and 15th day c) 15th day and last day

5

R-Return Bill of Entry

R-Returns are submitted by _______branches a) b) c) d)

3

b) d)

b) d)

Bank-wide None of above

Branches are now required to submit R-Return data in electronic format FETTERS 6.2 to GMU-K only within---- days and retain the hard copy, duly signed, at the branch as permanent record a) 7 days c) 3 days

b) d)

3 working days 7 working days 292


8

Non-Resident Deposits – Comprehensive Single Return (NRD – CSR) is sent to RBI through floppy/e-mail at ________intervals a) Monthly c) Half-yearly

9

10

a) NRE b) NRO c) RFC d) FCNR (B) BAL return containing the foreign currency balances of authorized dealers and rupee balances of non-resident banks is sent to RBI at _________intervals

b) d)

ORA R-Return

b) d)

FD Kolkatta None of above

Which statement containing the particulars of outstanding exports bills is being sent by ADs at half-yearly intervals (June/December) to RBI? a) BAL c) XOS

14

Quarterly Yearly

BEF statement showing details of imports for which documentary evidence has not been received from importers, is being sent at half yearly intervals to ______ a) RBI c) Both (a) & (b)

13

b) d)

Name the statement which is sent to RBI at quarterly intervals containing the details of permissions granted for opening of trading/non-trading office/posting of representatives abroad a) STAT 10 c) BAL

12

Quarterly Yearly

STAT 10 return being submitted to RBI at monthly intervals pertains to the details of _____accounts

a) Monthly c) Half-yearly 11

b) d)

b) d)

ORA BEF

Which return is sent to RBI at yearly intervals (in December), containing the details of export bills written off? a) BAL c) XOS

b) d)

EBW BEF 293


15

A return containing details of pending ECGC claims is sent to LHO at _______intervals a) Monthly c) Half-yearly

16

b) d)

Quarterly Yearly

Details of foreign contributions received by associations/organizations under FCRA 1976 is sent to LHO at ______intervals a) Monthly c) Half-yearly

b) d)

Quarterly Yearly

17 The information on the number of applications received and total amount remitted under the Liberalised Remittance Scheme is to be submitted to RBI-----------intervals a) Monthly c) Half-yearly

b) d)

Quarterly Yearly

18 The information on the number of applications received and total amount remitted under the Liberalised Remittance Scheme should reach RBI within -------days of the following month a) 7 days c) 3 days

b) d)

5 days 10 days

19 The information on Un- hedged Foreign Currency Exposure of Corporates is sent at ----- intervals a) Monthly c) Half-yearly 20

b) d)

Quarterly Yearly

Report on Booking of Forward Contracts is sent on ----- intervals a) Monthly c) Half-yearly

b) d)

Quarterly Yearly

21 Advance payment against Exports of Rs.5 crores & above is sent on----intervals a) Monthly c) Half-yearly

b) d)

Quarterly Yearly 294


22

Branches have been advised to furnish the compliance levels in relation to FCRA 1976 at ------ intervals to their respective LHO/SBU a) Monthly c) Half-yearly

b) d)

Quarterly Yearly

KEY TO ASSIGNMENT – 14 (IB) RETURNS 1 b 6 b 11 b 16 c

2 7 12 17

d b a a

3 8 13 18 21 c

d a c b

4 9 14 19 22

c c b b b

5 10 15 20

d b b a

295


ASSIGNMENT – IB-15 EXPORTS-I 1

Under FEMA, a person cannot export until he possess: a) RBI Licence c) Importer/Exporter Code

2

A2 A3

b) d)

15000 25000

b) d)

6 10

The exporter has to submit the duplicate copy of GR along with necessary documents to ADs within _____days from the date of shipment( Not required upto US$ 25000) a) 7 c) 21

7

b) d)

GR passed by customs contains ____digits running serial no a) 4 c) 8

6

6 months 1 year

The exporters are exempted to declare if their exports do not exceed USD ____or its equivalent a) 10000 c) 20000

5

b) d)

In which form, exporter has to declare the exports? a) A 1 c) GR

4

Licence from FICCI None of above

The exporter has to give an undertaking to realize the proceeds within ________from the date of shipment a) 3 months c) 9 months

3

b) d)

b) d)

14 28

After negotiation of the documents, AD is required to report the transaction to RBI in the form ____ a) FD 124 c) A 2

b) d)

ENC A4

296


After realization of relative bill, AD will send the duplicate copy of GR duly verified to a) RBI b) Respective LHO c) Respective ZO d) Kept for verification by auditors

9

If the bills exceeding USD 25000 stipulated period, these should be through ______ a) R Return b) c) BEF statement d)

remain outstanding for more than the reported to RBI at half-yearly intervals XOS statement None of these

10

If the export bill is not realized within the stipulated period, it should be crystallized at _______rate a) Bill Buying b) Spot TT Selling c) Bill Selling d) T.C. Selling

11

Gift of goods exceeding Rupees ---------- in value requires approval of RBI a) 2 lacs b) 7 lacs c) 5 lacs d) 10 lacs

12

XOS statement will be sent to RBI as on ____________________ a) 31st Dec & 30th June c) 31st Dec

13

b) d)

31st March & 30th Sep 30th June

ADs can permit GR waiver for export of goods free of cost for export as under a) 2% of annual turnover in preceding three years, max. Rs.5lacs b) 2% of annual turnover during three preceding licensing years, max Rs.10 lacs for status holder exporters c) Both a & b applicable d) None of these

14 The period of realization and repatriation to India of the amount representing full export value of goods or software exported has been enhanced to _____ till 30.06.10 a) 3 months b) 12 months c) 6 months d) None of these 14

If the exporter is unable to get his bill realized within 6 months from the date of shipment, he must seek extension of time from: a) RBI c) FICCI

b) d)

Finance Ministry Authorised Dealer

297


15

RBI has authorized ADs to extend the time if exports have not been realized within 6 months, provided: a) b) c) d)

16

Value not exceeding USD 1000,000/- (USD 1 million) Extension is for 6 months at a time ADs are satisfied about the reasons All of above

The ceiling of USD 1 million in case of powers vested with ADs for extension of time for overdue export bills will not apply, if the exporter has filed a suit against importer abroad. In such case, extension may be granted for ____months at a time a) 6 c) 12

17

b) d)

9 None of above

Before considering the extension of time of overdue export bill beyond 1 year from the date of shipment, ADs should ensure that total outstanding exports of the exporter should not exceed ____% of the average of export realizations during the preceding ____financial years a) 5, 1 c) 10, 3

b) d)

10, 2 10, 5

18

For getting extension of time for overdue export bill, the exporter has to apply in _______form a) A 1 b) A2 c) ETX d) All of above

19

After granting the necessary extension for realization of overdue export bill, it will be entered by ADs in ______________ a) R return c) XOS statement

21

b) d)

BEF statement Not required

Ads can approve proposals for export of goods on consignment basis for realization of export proceeds upto ---- from the date of shipment a) 60 c) 180

b) d)

90 360

298


KEY TO ASSIGNMENT – IB-15 EXPORTS-I

1 6 11 16 21

c c c d d

2 7 12 17

b b a a

3 8 13 18

c d c c

4 9 14 19

d b b c

5 10 15 20

d b a c

299


International Banking ASSIGNMENT –16 (IB) EXPORTS-II 1

ADs handling shipping documents have been permitted by RBI to allow reduction in export value not exceeding ___% of invoice value a) 5 c) 15

2

6

A1 A3

b) d)

10 No limit

If an exporter wants reduction in invoice value for an amount exceeding 10% of invoice value, he will have to submit the application to AD who in turn will forward it to ____ a) FICCI c) Finance Ministry

5

b) d)

The exporters who are in the business for more than 3 years and their export outstandings do not exceed 5 % of the average annual export realization during preceding 3 calendar years, can be allowed reduction in invoice value upto ___% a) 5 c) 15

4

10 25

The exporter seeking reduction in invoice value, will submit an application on form ______ a) RDX c) A 2

3

b) d)

b) d)

RBI Commerce Ministry

ADs are authorized to allow remittance of agency commission (on submission of application by the exporter) if declared normally in ____ a) Export Bill b) GR c) Bills of Exchange d) All of above ADs can allow remittance of agency commission even if it is not declared on GR provided it is mentioned in ______ a) Export Bill b) Bills of Exchange c) A valid agreement between Exporter & beneficiary d) All of above

300


Full amount of a export bill will be shown as ____transaction and remittance of agency commission as ____transaction, in R-Return a) Purchase, Sale c) Purchase, Purchase

8

If an exporter is unable to realize his export bill within the stipulated time despite his best efforts, ADs can allow for _____ Write off of bill None of above

b) d)

15 25

The amount of the bill proposed to be written off must have remained outstanding for _____year of more a) 1 c) 3

13

b) d)

Before allowing self write-off of unrealized bills, including reduction in invoice value, ADs will ensure that amount of such bills does not exceed ____% of the total export proceeds realized during the previous calendar year a) 10 c) 20

12

A2 None of above

Acquisition of immoveable property abroad for Overseas offices Counter Trade Agreements Export of goods on Lease, Hire etc. Participation in Trade Fairs abroad

a) Filing a suit c) Both (a) & (b) 11

b) d)

Which of the following international trade transaction does not require prior approval from the RBI ? a) b) c) d)

10

Sale, Purchase Sale, Sale

While remitting agency commission, in addition to application, _______will be obtained from the exporter? a) A 1 c) Both (a) & (b)

9

b) d)

b) d)

2 5

The details of written off bills will be sent to RBI at ______intervals a) Monthly c) Half-yearly

b) d)

Quarterly Yearly

301


At the end of December each year, a statement will be sent to RBI for written off bills during the year on Form _______ a) XOS c) EBW

15

b) d)

R-Return BEF

Whose responsibility is to ensure that the documents do not reveal any material inter se discrepancies in regard to description of goods exported, export value or country of destination a) Authorised Dealer c) Shipping company

16

b) d)

The period of realization applicable for exports by units in SEZ is-----a) 6 months c) 12 months

17

Reserve Bank Importer

b) d)

18 months No time limit

Prior approval of RBI for change of buyer/consignee in the event of default by the latter is not required provided: a) Reduction in value, if any involved, does not exceed 25% b) Realisation of export proceeds not delayed beyond 6 months from the date of export c) Both (a) & (b) d) None of above

18

Claims settled in rupees by ECGC should not be construed as export realization in foreign exchange a) True b) False

19 Branches not submitting a monthly certificate to GMU-K by 10th of following month in case of PCFC Loans and EBR bills crystallized on due date would not be granted Fund Angle Clearance for further loans a) True 20

b)

False

In terms of the amendment to rule no. 2 A.2 by FEDAI, the following instructions are applicable to crystallization of unpaid export bills a) ADs are free to decide on the period for crystallization b) Bills to be crystallized at spot TT selling rate c) Exchange difference arising out of crystallization to be recovered from or passed on to the customer d) All of above e) Only b & c 302


KEY TO ASSIGNMENT – 16 (IB) EXPORTS-II 1 6 11 16

d c a d

2 7 12 17

a a a c

3 8 13 18

d b d a

4 9 14 19

b d c a

5 10 15 20

b b a d

303

STATE BANK LEARNING CENTER, PANCHKULA International Banking ASSIGNMENT – 17 (IB) EXPORTS-III 1 An exporter will be classified as Export House if export turnover is ---- over past three years plus current year’s export realisation a) Rs. 20 crores c) Rs. 25 crores

b) d)

Rs. 50 crores Rs. None of these

2 For getting a Star Export House status, the export turnover over 3 years should be Rs. _____crore a) 50 c) 200

b) d)

100 300

3 If an export house has achieved export turnover over three years to the tune of Rs. 500 crore, it will be classified as ______. a) Star Trading House c) Premier Trading House

b) d)

Trading House None of these

4 For getting a Star Trading Export House status, an export house has to make export turnover for Rs. ____crore over 3 years a) 500 c) 2500

b) d)

1000 2000

5 An export house has made export turnover to the tune of Rs. 10000 crore over 3 years, it will be classified as _____Export House a) Star Trading House c) Trading House

b) d)

Premier Trading House None of these

6 The units in Special Economic Zone (SEZ) are permitted to credit ____% of its foreign exchange receipts in their FC (SEZ) Account a) 25 c) 75

b) d)

50 100

7 A person resident in India may open with ADs an account in foreign currency to be known as ______Account a) NRE c) FCNR

b) d)

NRO EEFC

304

STATE BANK LEARNING CENTER, PANCHKULA 8 Which type of credit facility can be granted against the security of balance held in EEFC Account? a) C/C & T/L c) Both (a) & (b)

b) d)

L/C & B/G No facility

9 All exchange earners can retain upto ___% of their foreign exchange earnings in their EEFC Account a) 50 c) 100

b) d)

75 Not permitted

10 EEFC A/c by export customer will be maintained as ______ a) b) c) d)

Non-interest bearing Current Account Interest bearing Term Deposit Non-interest bearing Saving Bank Account Interest bearing Saving Bank Account

11 EEFC Account can be opened in how many currencies? a) 2 c) 6

b) d)

4 8

12 In which currencies, EEFC Account can be opened? a) b) c) d)

USD, GBP, JPY, EURO USD, JPY, AUD, EURO JPY, GBP, AUD, EURO EURO, USD, GBP, AUD

13 For opening an EEFC Account, minimum balance of USD______or its equivalent, has been prescribed a) 1,000 b) 5,000 c) 10,000 d) 25,000 14 The balance lying in EEFC Account are exempted from the purview of--a) CRR c) Both (a) & (b)

b) d)

SLR None of above

15 EEFC Account holders are required to obtain prior approval of _____pertaining to remittance for purchase of trade marks a) RBI c) Commerce Ministry

b) d)

Finance Ministry Industry Ministry 305


16 Pre-shipment credit in Foreign Currency (PCFC) is linked to ____interest rates a) SBAR c) LIBOR

b) d)

MIBOR Bank Rate

b) d)

B Designated

17 PCFC is operative at _____branches a) A c) C 1

18 Designated branches have to obtain Funds Angle Clearance (FAC) from GMU Kolkatta for all fresh disbursement of PCFC/EBR for amount exceeding ____ a) 5.00 lac c) 15.00 lac

b) In all cases, irrespective of amount d) 20 .00 lac

19 PCFC is available by way of _______ a) Term Loan c) Both (a) & (b)

b) d)

Cash Credit Overdraft

20 In case of PCFC, maximum period of credit allowed is ____days from the date of disbursement : a) b) c) d)

180 days Beyond 180 days and upto 360 days 2% extra Both ‘a’ & ‘b’ applicable None of the above

21. Fund Angle Clearance obtained from GMU-Kolkatta is to used as under: a)15 days allowed for its disbursement, b) If not availed within 15 days, the same will be automatically cancelled, c) Next request for same facility can be made only after 45 days of original FAC date d) However, fresh request can be made before 45 days if borrower pays a charge of i% per annum from the date of original FAC. e) All of the above applicable.

306

STATE BANK LEARNING CENTER, PANCHKULA KEY TO ASSIGNMENT –17 (IB) EXPORTS-III 1 6 11 16 21

a d b c e

2 7 12 17

b d a d

3 8 13 18

b d a b

4 9 14 19

c c c b

5 10 15 20

b a a c

307

STATE BANK LEARNING CENTER, PANCHKULA International Banking ASSIGNMENT – 18 (IB) EXPORTS-IV 1 PCFC will be adjusted at the ruling TT Selling Rate for the currency concerned, if no export takes place even within _____days, inclusive of transit period a) 60 c) 180

b) d)

90 360

2 PCFC will be adjusted through the proceeds of export bills under ____ a) EPC c) Both (a) & (b)

b) d)

EBR None of above

3 Discounting of EBR bill has to be reported to FD on line if the amount exceeds USD ______ or its equivalent in other permissible currencies a) 25,000 c) 1,00,000

b) d)

50,000 Irrespective of amount

4 Interest recovered on EBR/PCFC loan will be recovered from ________ a) Relative EBR/PCFC account c) Either a or b

b) d)

Customer’s other account None of above

5 Cover under Individual Packing Credit Guarantee of ECGC is from the date of disbursement of loan to : a) b) c) d)

Date of shipment Date of discontig of bill Date of credit to nostro account Date of repayment of rupee loan

6 PCFC/EBR transactions pertaining to Non-Designated Branches will be reported in R-Return of ________ a) Non-Designated Branch c) FD Kolkatta

b) d)

Designated Branch Respective LHO

308

STATE BANK LEARNING CENTER, PANCHKULA 7 Gross Interest Earnings received by Designated Branch on PCFC/EBR transactions of Non-Designated Branch will be transferred by the designated branch to ______ a) Non-Designated Branch c) FD Kolkatta

b) d)

Respective LHO Retained by Designated Branch

8 Income received by Designated Branch on account of Forex Remuneration and handling/processing charges pertaining to PCFC/EBR transaction of NDB will be transferred to ________ a) Non-Designated Branch c) FD Kolkatta

b) d)

Respective LHO Retained by Designated Branch

9 Statement of PCFC will be sent to FD Kolkatta at ______interval a) Fortnightly c) Quarterly

b) d)

Monthly Half-yearly

10 Statement of bills discounted under EBR will be sent at fortnightly interval to a) RBI c) FICCI

b) d)

FD Kolkatta Finance Ministry

11 The rate of interest on Pre-shipment finance in Foreign Currency upto 180 days a) LIBOR + 1% c) LIBOR + 3.50%

b) d)

LIBOR + 2% LIBOR - 1%

12 In case of running account facility advance can not be used for EPC/PCFC of more than ----days a) 180days c) 360 days

b) d)

liquidating

60 days None of these

13 Which is not true in the case of Pre-shipment finance in Foreign Currency a) Sharing of PCFC by supplier & EOH permitted b) Partly in rupee and part PCFC for same export order permitted c) Forward contacts can not be booked d) All are applicable

309


14

Which is not true in the case of Post-shipment finance a) Sanction of EPC to accompany sanction of post shipment facilities b) Separate limits for LC/ non-LC bills c) Both a & b d) None of these

15 Which is not true in the case of SBI Exporters Gold Card Scheme a) b) c) d) 16

Account standard for last three years Unit has not incurred losses during past 3 years Limit valid for 3 years All are true

Which is not true in the case of SBI Exporters Gold Card Scheme a) Stand by limit of 20% of assessed limit to meet sudden orders b) Step up by 10% at end of 1st & 2nd year by BM allowed c) Interest concession for pre-shipment & post-shipment d) All are true

17

A stand by limit of 20%, sanctioned over and above the limit, can be utilized by the exporter under SBI Exporter Gold Card Scheme, for a maximum period of _____days in one instance a) 60 c) 180

b) d)

90 365

18 Under SBI Exporter Gold Card Scheme, eligible exporters can be sanctioned pre-shipment credit limits for _____days with some concession in rate of interest a) 60 b) 90 c) 180 d) 365 19 Under SBI Exporter Gold Card Scheme, eligible exporters can be sanctioned post-shipment credit limits for _____days with some concession in rate of interest a) 60 c) 180

b) d)

90 365

20 A fresh application for credit facility under SBI Exporter Gold Card will be disposed off within ____days a) 10 b) 15 c) 20 d) 25

Scheme

310

STATE BANK LEARNING CENTER, PANCHKULA 21 An application for renewal of limit under SBI Exporter Gold Card Scheme will be disposed off within _____days a) 10 c) 20

b) d)

15 25

23 Request for sanction of adhoc limits under SBI Exporter Gold Card Scheme will be processed within _____days a) 7 c) 21

b) d)

14 28

24 Due to the difficulties faced by the exporters, the requirement of overdue bills not exceeding 10% of the previous year’s export turnover has been dispensed with for a period of__ a) b) c) d)

From 01.04.09 to 31.03.2010 From 01.09.09 to 30.09.2010 From 01.04.09 to 31.03.2011 Has been permanently dispensed with

KEY TO ASSIGNMENT – 18 (IB) EXPORTS-IV 1 6 11 16 21

d a b c a

2 7 12 17 22

b d c c d

3 8 13 18 23

d a c d d

4 9 14 19 24

b b d d a

5 10 15 20

b c d b

*****

311


International Banking ASSIGNMENT – 19 (IB) COLLECTIONS 1

Documentary collections are covered under the provisions contained in----a) UCPDC 600 c) URC522

2

b) d)

ISBP None of above

‘Documentary collection’ means collection of a) b) c) d)

Financial documents accompanied by commercial documents Commercial documents not accompanied by financial documents Either (a) or (b) Only (a)

3

Clean collection means collection of a) Financial documents accompanied by commercial documents b) Commercial documents not accompanied by financial documents c) Financial documents not accompanied by commercial documents d) None of above

4

Under a collection, if full details regarding interest and charges to be collected from the drawee are given, without specifying if such charges can be waived or not, the presenting bank can waive interest and bank charges without reference to the seller or his bank a) True

5

b)

False

A collection contains a bill of exchange payable at a future date. However , it does not contain the instruction whether the commercial documents are to be released against acceptance( D/A) or payment( D/P). The collecting bank will release the commercial documents a) Against acceptance b) Against payment c) The collecting bank to refer to seller or his bank for seeking instructions d) None of these

312


6

Under URC522 which of the following statement is not true in respect of documentary collections a) Banks assume no liability or responsibility for consequences arising out of the interruption of their business by strikes and lockout b) Partial payments will be accepted if specifically authorized. However, unless otherwise instructed, the presenting bank will release the documents after full payment has been received c) The presenting bank is responsible for the genuineness of any signature or for the authority of any signatory to sign the acceptance d) All are applicable

7

Centralised cheque collection and export bill payment centre is a) GMU-K c) GLS

8

b) d)

IBG, Corporate centre Overseas Branch, Mumbai

Which of the following statement is not true in respect of cheque collections a) All credits in customer’s account in respect of cash letter to be released after cooling period of respective currency b) Individual cheques above USD10,000 to be collected under FCS-Final Credit Service c) GLS collects USD cheques payable in USA, GBP cheques payable in UK and EURO payable in Euro countries only d) All are true

9

Under GNRCC, which of the following is not applicable a) Under it, our Nostro account is credited immediately on receipt of cheque at other end b) The credit is reversed if the instrument is returned on or before period

cooling

c) The credit is not reversed if the instrument is returned after cooling period d) All are applicable

313


10

Financial Action Task Force ( FATF) on money laundering was established by the G-7 summit in a) 1990 c) 2001

11

b) d)

Which of the following is/are the important USA enactments to combat money laundering a) FATF c) USA PATRIOT Act e) b & c

12

b)

False

b)

False

b) d)

Acceptance All of above

Inward Remittance Cell has been set up at : a) Overseas Branch, Mumbai c) Overseas Branch, Kolkatta

17

1989 None of above

Which of the following is a stage of Money Laundering a) Introduction c) Integration

16

b) d)

When we make remittances or receive remittances, the payment instructions are checked through a software – OFAC Filter set up at GMU-Kolkatta a) True

15

USA OFAC All of above

Under USA Patriot Act’s 120 Hour Rule , the deadline for submission of information within 120 hour from the receipt of request is applicable to our branches situated in USA a) True

14

b) d)

USA Patriot Act was originally enacted in a) 1990 c) 2001

13

1989 None of above

b) d)

GMU-Kolkatta None of the above

IRC will process the remittances upto __for retail customers at prevailing Card rate, except remittances received for opening of accounts: a) USD 5,000 c) USD 10,000

b) d)

USD 50,000 None of above 314

STATE BANK LEARNING CENTER, PANCHKULA 18, For transactions above USD 5,000 or its equivalent, as per FEDAI guidelines, IRC will facilitate re-conversion at level rate if the customer request within ____ days of the transaction: a) 10 days c) 15 days

b) d)

7 days Conversion not permitted

19. IRC has the capability to send the remittances received for credit of customers account with other Banks: a) True

b) False

KEY TO ASSIGNMENT – 19 (IB) COLLECTIONS 1 6 11 16

c c e b

2 7 12 17

c c c c

3 8 13 18

c d a b

4 9 14 19

a d a a

5 10 15

b b c

*****

315

STATE BANK LEARNING CENTER, PANCHKULA International Banking ASSIGNMENT – 20 (IB) FCNB PREMIUM ACCOUNT 1. Which of the following is true in the case of FCNB Premium Account a) It is the earlier called “Dollar Premium Account” as it was available in USD only. b) It is available in all the six designated currencies (viz. USD, GBP, EURO, AUD, CAD and JPY). c) It combines the benefits of a FCNR (B) deposit with Forward Cover to give enhanced return to its depositors. d) All of the above. 2. Which of the following is true in the case of FCNB Premium Account a) Deposit Tenor under FCNB is 1 year b) Minimum deposit: USD 2000 / GBP 2000 / EUR 2000 / AUD 2000 / CAD 2000 / JPY 2,00,000 c) Both principal and interest are payable in Indian Rupees at a predefined forward rate only and to be credited on maturity in NRE Savings bank account only d) All of the above 3. Which of the following is true in the case of FCNB Premium Account a) No auto renewal facility is available b) Yields from this product are presently higher than FCNR (B) deposit booked in corresponding foreign currency c) Both a & b are true 4. Which of the following is true in the case of FCNB Premium Account a) No interest payable if the FCNR (B) deposit is closed before maturity. b) In case of cancellation of Forward Contract by the customer, cancellation charges and exchange gain/loss to be borne by the customer at prevailing rate. c) Only authorized branches can open ‘FCNR (B) – Premium Account’ d) All of the above. KEY TO ASSIGNMENT – 20 (IB) FCNB PREMIUM ACCOUNT 1. d

2. d

3. c

4. d

316

STATE BANK LEARNING CENTER, PANCHKULA SYSTEMS AND PROCEDURES IN AGRICULTURE - I 1

The relaxed security/Margin norms are to be applied------------- in agricultural advances. a) c)

2

100 25

Borrower Both a& b

AB4 AB7

Guarantee Agreement

c) Revival letter from the guarantor

b) d)

50 No charges

b) d)

Guarantor None of the above

b) d)

AB5 None of the above

b) Conversion of crop loan into Agri. Term Loan d) None of the above

Detailed opinion reports are to be complied only on such borrowers whose aggregate Agricultural advances exceed ------------. a) c)

8.

bank No photograph to be obtained

AB7 document is obtained for -------------a)

7.

b) d)

Deed of guarantee Document AB2 can be revived by the Guarantor by executing ---. a) c)

6

borrower borrower and bank on 50:50

Who executes document AB1? a) c)

5

Facility wise None of the above

In case of advances to weaker sections, inspection charges should be levied @------------% of prescribed rates. a) c)

4

b) d)

In case of Agricultural advances, cost of photograph is borne by -------a) c)

3

Borrower wise Account wise

Rs. 25,000/Rs. 1,00,000/-

b) d)

Rs. 50,000/None of the above

While granting limits under KCC, the scale of finance, is prepared by--------. a) District Level Technical Committee c) Block level Consultative Committee

b) District Consultative Committee d) None of above 317


9.

While granting limits under KCC, the scale of finance, is approved by -----a) District Technical Committee c) Block level Consultative Committee

10.

While financing crop loan adopting scale of finance, following margins are required---a) c)

11.

May & November On due dates

b) April & September d) Half yearly

5% 25%

b) d)

10% NIL

5% to 10% 25% to 30%

b) d)

NIL 15% to 25%

Purpose for which KCC can be granted.-------------a) c)

16.

b) Tenant farmers d) All of the above

What is the margin on Crop loans above Rs. 1,00,000/-where cost of cultivation is worked out by the Bank. a) c)

15.

Owner Cultivators Share Croppers

What is the margin on Crop loans up to Rs. 1,00,000/- where cost of cultivation is worked out by the Bank. a) c)

14.

b) 25 % d) No margin

Interest on Crop loan on current dues is to be applied a) c)

13.

40 % 15 %

Who is eligible for crop loan / KCC a) c)

12.

b) District Consultative Committee d) None of above

Crop production Contigent Needs

b) d)

Ancillary activities All of the above

In Contract Farming, under tie-up arrangement crop loan can be granted without collateral security up to a. c.

Rs.25000 Rs.100000

b. d.

Rs 50000 Rs 200000

318


Loans up to Rs.------- for financing distribution of inputs for the allied activities is treated as indirect agriculture advance under Priority sector lending. a) c)

18.

25.00 lacs 50.00 lacs

30.00 lacs 50.00 lacs

b) d)

40.00 lacs None of above

In case of crop loans, norms for obtaining collateral security have been relaxed for limits up to --------a) c)

20.

40.00 lacs None of above

Loans for financing to dealers in drip irrigation/sprinkler irrigation system/agricultural machinery, irrespective of their location, is treated as indirect agriculture advance under Priority sector lending up to Rs.-------. a) c)

19.

b) d)

Rs. 10,000/Rs. 50,000/-

b) d)

Rs.25,000/Rs.5,00,000/-

In case of Agricultural Term loans (where assets are created), norms for obtaining collateral security have been relaxed for limits up to --------a) c)

Rs. 10,000/Rs. 50,000/-

b) d)

Rs. 25,000/Rs. 1,00,000/-

Answers SYSTEMS AND PROCEDURES IN AGRICULTURE - I 1 b 11 d

2 b 12 c

3 b 13 d

4 a 14 d

5 b 15 d

6 b 16 d

7 c 17 b

8 a 18 a

9 b 19 c

10 d 20 d

319


SYSTEMS AND PROCEDURES IN AGRICULTURE AGR- II 1. In case of Agricultural Term loans (where assets are not created), norms for obtaining collateral security have been relaxed for limits up to --------a) Rs. 10,000/b) Rs. 25,000/c) Rs. 50,000/d) Rs. 1,00,000/2. In case of crop loans/ agri. term loans norms for obtaining margins have been relaxed for limits up to a) Rs. 10,000/b) Rs. 25,000/c) Rs. 50,000/d) Rs. 1,00,000/3. As per the revised guidelines of RBI, the branches are required to prepare a. Village wise credit plans b. Branch credit plan. c. Both Village wise credit plans and Branch credit plan d. None of the above 4. Rabi crop is sown/planted in the months of---------------a) October/November b) Feb/March c) June/July d) None of the above 5.Kharif Crop is sown/planted in the months of---------------a) October/November b) Feb/March c) June/July d) None of the above 6.Kharif crop is harvested in the months of---------------a) October/November b) Feb/March c) June/July d) None of the above 320


7. AB1(SIMPLE) is applicable to farmers sanctioned with loan of Rs ___ a) Rs.50000 b) Rs.1 lac c) Rs.2.00 lac d) none of the above 8.The account should have been a Standard Asset in the books of other Bank/FI during the preceding -----years in case of take over of Agriculture Advance. a) 2 b) 3 c) 5 d) None of the above 9. ATL accounts with minimum -------years repayment programme left, are eligible for take over. a) 2 b) 3 c) 5 d) None of the above 10.For take over of ACC account from other Bank/Financial institution, minimum amount should be-a) Rs. 1.00 lac b) Rs.10.00 lac c) Rs. 20.00 lac d) No such stipulation 11.For take over of ATL account from other Bank/Financial institution for allied activities, minimum amount should be-----------a) Rs. 1.00 lac b) Rs.10.00 lac c) Rs. 20.00 lac d) No such stipulation 12. For take over of ATL account from other Bank/Financial institution for other than allied activities, minimum amount should be-----------a) Rs. 2.00 lac b) Rs.10.00 lac c) Rs. 20.00 lac d) No such stipulation 321


13. Bank pays interest on the current account balances maintained by our sponsored RRBs @ a) 3.5% b) No interest is being paid c) 5% d) 8% 14. The margin money requirement for agricultural term loan upto Rs. 1,00,000/- is a) 10% b) 15% c) 20% d) No margin 15. Where movable assets are not created and the loan amount is over Rs.1,00,000/-, the borrower has to furnish security of a) DP Note & Delivery letter, loan agreement b) Only DP Note c) Hypothecation of assets d) Mortgage of land 16. The document AB6 is a. Guarantee Agreement b) Letter to the borrower demanding repayment of crop loan c) Revival letter d. Application for rephasement of term loan 17. The quantum of refinance extended by the NABARD for dryland development and waste land development (where individuals are the beneficiaries) will be to the extent of a) 50% of bank loan b) 60% of bank loan c) 75% of bank loan d) 100% of bank loan 18. As per the revised guidelines of RBI , obtaining the No-due Certificate from service area bank branch ........ a. is must for the lending branch . b. is dispensed with for a Agl. loan amount upto Rs. 50,000/322


19. The present approach by Govt. towards rural lending is a) Service Area Approach with relaxed norms b) Village adoption c) Multi Area Approach d) Scattered lending 20. Revival letters AB4 & AB5 have to be affixed with Rs.______ Revenue stamp a) 0.25 b) 1.00 c) No Stamp d) Varies from State to State

Answers SYSTEMS AND PROCEDURES IN AGRICULTURE - II

1 d 11 b

2 d 12 a

3 b 13 b

4 a 14 d

5 c 15 d

6 a 16 b

7 b 17 d

8 a 18 b

9 a 19 a

10 a 20 d

323

STATE BANK LEARNING CENTER, PANCHKULA SYSTEMS AND PROCEDURES IN AGRICULTURE III 1.

Limitation period for the hypothecation agreement AB1 in case of agricultural term loans a) 3 yrs. From the date of revival b) 3 yrs. From the date of demand c) 3 yrs. From the due date of repayment d) 3 yrs. From the due date of repayment / first overdue instalment from the date of demand whichever is earlier.

2.

For conversion of crop loans to term loans which of the following is required a) Annawari certificate b) VAO Certificate c) Technical Rep ort d) MDO certificate

3.

DCB register is to be maintained for a) ATL only b) ACC only c) ATL and ACC d) None

4.

After disbursement of the crop loan, inspection should be undertaken a) b) c) d)

5.

In case of irregular crop loan, inspection should be undertaken a) b) c) d)

6.

Monthly Quarterly Half yearly No inspection to be undertaken till harvest time

Monthly Quarterly Half yearly At the time of harvest

In case of regular ATL where moveable assets are created inspection should be undertaken a) b) c) d)

Monthly Quarterly Half yearly No inspection for regular ATL account 324


7.

In case of irregular ATL where moveable assets are created inspection should be undertaken a) b) c) d)

8.

In case of regular ATL where immoveable assets are created inspection after grounding of assets should be undertaken a) b) c) d)

9.

Monthly Quarterly Half yearly Annually

The document can be revived by a b. c. d.

11.

Monthly Quarterly Half yearly Annually

In case of irregular ATL where immoveable assets are created inspection should be undertaken a) b) c) d)

10.

Monthly Quarterly Half yearly At the time of harvest

Obtaining a Revival letter Part payment Acknowledgement Of debt All the above

“SILVICULTURE” refers to cultivation of a) b) c) d)

Forest Trees Grasses Fodder crop Medicinal plant

12. Validity period of equitable mortgage is _______yrs a) b) c) d)

3 12 13 14 325


13. Mixed Farming means a) Multiple cropping b) Availing both crop loan & Gold loan c) Undertaking cultivation and allied activities d) None 14. To avail unrestricted refinance from NABARD, the maximum level of Gross NPA to Loan & advances outstanding as at the end of the year preceeding previous year is a) b) c) d)

5% 10% 15% 20%

15. The limitation period of mortgage is 12 years which will be counted from a. Execution of document b. Date of creation of mortgage c. Due date of repayment d. Date of filing legal suit 16. The mandatory percentage of agricultural advances to Net Bank Credit is ______ a) 15% b) 25% c) 40% d) 18% 17. For the purpose of reporting in performance report, the advances to self help groups (SHGs) should be categorised under a) SBF sub-segment b) SSI sub-segment c) AGR segment d) According to activity of SHG 18. The inspection visits are to be made by the field staff for a) Pre-sanction survey b) Post-sanction c) Recovery of loans d) All the above

326


19. Inspection of Agri NPA accounts should be done a.monthly for ACC/KCC b.monthly for ATL c.quarterly for ACC/KCC and ATL d. monthly for ACC/KCC and ATL 20. The inspection charges on loans under agrl. segment with limits above Rs.25,000 & upto 2 lacs is a) 200/ p.a. b) 500/- p.a. c) 10 00/- p.a. d) None of the above Answers SYSTEMS AND PROCEDURES IN AGRICULTURE - III 1 d 11 a

2 a 12 b

3 c 13 c

4 d 14 c

5 a 15 c

6 c 16 d

7 a 17 c

8 d 18 d

9 a 19 d

10 d 20 b

327

STATE BANK LEARNING CENTER, PANCHKULA SYSTEMS AND PROCEDURES IN AGRICULTURE - IV 1. Loan processing charges to be collected while processing a proposal with limits over Rs. 25,000/- & upto Rs. 2,00,000/- lacs under Agrl. Segment is a) Rs.500/b) Rs.500 per lacs c) Rs.400 per lac d) None of the above 2. Loan processing charges to be collected while processing a proposal with limits above Rs. 2 lacs and up to Rs 1.00 crore under Agrl. Segment is a) 0.5% of the limits b) Rs.250/- per lac c) Rs.500/- per lac d) Not. Applicable to agril. advances 3. Progressive farmers can be financed production credit maximum to the tune of a. SOF recommended by DLTC/SLTC b. 150% of SOF fixed by DLTC/SLTC. c. 200% of SOF fixed by DLTC/SLTC. d. None of the above 4. The progressive farmer means who a) uses advanced pre-harvest / post harvest technologies b) having irrigation facilitiers c) crop productivity is more than the average levels d) Maintaining good track of record for alteast one year e) All of the above 5. Scales of finance for crops fixed by DLTC is a) Net of margin b) including margin c) total cost of cultivation d) None of the above 6. The basic marketing variables are a. Product and Place b. Price c. Promotion d. All of the above 328

STATE BANK LEARNING CENTER, PANCHKULA 7. In the case of revival of documents, the guarantor signs the revival letter but borrower refuses to sign. The document is a) Valid in the court of law. b) Not valid in the court of law c) Valid only in DRTs d. Valid in District Courts 8 The Demand Collection and Balance (DCB) register is prepared at the branches a) Monthly b) Quarterly c) Half -yearly d) Yearly 9.D.C.B. register is maintained by the branches for -------. a) P-segment advances only b) C&I and SIB Segment advances only c) ATL and ACC advances only d) All segments of Advances 10. Which of the following is treated as fiscal year for the purpose of maintaining DCB register. a) 1st Jan to 31st Dec. b) 1st April to 31st March. c) 1st July to 30th June. d) None of the above 11.Which of the following should be included in the Demand, while preparing DCB register. a. Amounts due in ACC and ATL Accounts b. Amounts transferred to Recalled Assets account in Agriculture c. Both a & b d. None of the above 12.Total interest debited should not exceed the principal amount in case of short term loans sanctioned to---------. a) High Tech Agri Borrowers b) Small/Marginal Farmer c) DRI borrowers d) None of the above

329

STATE BANK LEARNING CENTER, PANCHKULA 13. As per Government directives, the share of weaker section in Bank’s advances should be-------% of Priority sector advances. a) 40% c) 180%

b) 25% d) None of above

14. If, targets under Agriculture financing are not achieved, shortfall is to be contributed to a.RBI b.Central Govt. c.Rural Infrastructure Development Fund of NABARD d.None of th e above 15. In case of Agriculture Advance the general provision on standard asset is a) 0.25% b)0.40% c) 1.00% d) 10.0% 16. Up front fee for ATL is waived up to a) Rs.50, 000 b) Rs.1, 00,000 c) Rs.2, 00,000 d) Rs.5, 00,000 17. The purpose of inspection is-------a) To ensure proper utilization of loans. b) To establish and maintain a close and continuous relationship between the Bank and borrower. c) To ensure prompt repayment of dues. d) All of the above 18.Maximum loan that can be sanctioned to farmers under “Relief measures for farmers indebted to Non-institutional lenders” is-------------. a)Rs. 25,000/b) Rs.50,000/c) Rs. 1,00,000/d) None of the above

330

STATE BANK LEARNING CENTER, PANCHKULA 19. The Service Area Approach was introduced w.e.f....................... a. April,1968 b. April,1980 c. April,1989 d. April,1991 20. As per the revised guidelines of RBI , the Service Area concept is a. strictly applicable for all advances b. not applicable for P-segment advances c. not applicable for lendings except under Govt. sponsored schemes.

Answers SYSTEMS AND PROCEDURES IN AGRICULTURE - IV 1 a 11 c

2 c 12 b

3 c 13 b

4 e 14 c

5 a 15 a

6 d 16 c

7 b 17 d

8 d 18 b

9 c 19 c

10 c 20 c

331


RELIEF MEASURES IN AREAS AFFECTED BY NATURAL CALAMITIES – AGR V 1.' Annewari ' declared by Revenue Authority is now a. not required to extend relief measures in areas affected by natural calamities b. required to extend relief measures in areas affected by natural calamities c. must be required to extend relief measures in areas affected by natural calamities d. None of the above 2.'Annewari' indicates..................... a. Rainfall b.Cropping pattern c. Extent to which the crops are damaged due to natural calamity d. None of the above 3.'Annewari' is declared for ............... a. Revenue Village wise b. District as a whole c. Block/Taluka as a whole d. none of the above 4. What are the relief measures to be extended by Banks to the farmers whose crops are damaged /affected by natural calamities? a. Conversion of crop loan b. Rephasement of Agri. Term Loans c. Fresh Crop Loans after conversion of earlier crop loan outstandings d. all the above 5. The amounts of crop loans not collected due to natural calamity should be converted in to term loan for a period up to.........years for farmers other than SF/MF. a. c.

9 5

b. d.

7 3

6. The amounts of crop loans not collected due to natural calamity should be converted in to term loan for a period up to.........years for Small /Marginal Farmers. a. c.

9 5

b. d.

7 3

332


7. Where damage to crops arising out of natural calamity is very severe and has caused acute distress to the farmers and the calamity is for two successive years the branches may in consultation with the Task Force/ Steering Committee of SLBC , grant extension of converted loans for longer periods ranging up to.............years a. 8 to 9 b. 10 to11 c. 3 to 4 d. 5 to 7 8. In extreme cases of hardship arising out of very severe loss to the crops , or occurrence of three successive crop failures and the debt burden being found to be beyond the immediate repaying capacity of the borrowers, conversion for longer period up to a maximum period of ............years may also be considered in consultation with the Task Force/SLBC. a. 11 b. 5 c. 7 d. 9 9. In the case of Small/Marginal farmers, interest on the short term loan which has been converted may be postponed and recovered in the next harvesting/marketing season and there should be no compounding of interest outstanding on the short term loans in such cases. a. True b. False 10. The rate of interest on the short term loans converted on account of natural calamity should be............... a. Higher than the crop loan b. Lower than the crop loan c. the same as was charged on the crop loan 11. What document is required to be obtained from the borrowers/guarantors while granting facility of conversion of crop loan ? a. AB-2 b. AB-6 c. AB-7 d. AB-5

333

STATE BANK LEARNING CENTER, PANCHKULA 12.What is maximum repayment period for loan sanctioned under “Relief measures for farmers indebted to Non-institutional lenders” scheme. a) c)

24 months 48 months

b) d)

36 months 60 months

13. In the event of natural calamities the Agl. Term loans instalments and interest should be rescheduled for a period of ................years, keeping in view the repaying capacity of the borrowers and extent of damage on account of the natural calamity . a. 3 year and longer if the damage is severe b. 1 years c. 2 years d 3 years maximum 14. In regard to natural calamity where only crop for that year is damaged and productive assets are not damaged, the branches may postpone the payment of instalments during the year of natural calamity, for a period of___ a. c.

Three years Two years

b. d.

Five years One year

15. The facility of reschedulement of Agri. Term Loans where only the crop for that year is damaged due to natural calamity and productive assets are not damaged should not be extended to those borrowers who are income tax payers. a. True b. False 16. The facility of reschedulement of Agri. Term Loans in case of drought should not be extended to those borrowers who are having perennial sources of irrigation except where water supply was not released from canals or irrigation facility was not available from other perrenial sources. a. True b. False 17. In the event of a natural calamity like floods or cyclones where the productive assets are partially or totally damaged and borrowers are in need of a new loan the repayment of total Agl. Term loan including interest liability less the subsidies received from the Govt. agencies and compensation available under insurance schemes may be fixed having regard to the repaying capacity of the borrower and economic life of the new assets financed subject to a maximum period of ...............years. a. c.

3 9

b. d.

5 15 334

STATE BANK LEARNING CENTER, PANCHKULA 18. Where the crop loan which was converted in to term loan was earlier given against personal security/ hypothecation of crop and the borrower is not able to offer charge/ mortgage of land as security for the converted loan, he should not be denied conversion facility merely on the ground of his inability to furnish land as a security. a. True b. False 19. Branches should not insist on third party guarantees for providing conversion facilities. a. True b. False 20. Margin requirements may be waived and the grants/subsidy given by the concerned State Govt. may be considered as margin while financing fresh crop loans /term loans after conversion/rephasement on account of natural calamity. a. True b. False

Answers AGRICULTURE - V 1 a 11 c

2 c 12 c

3 a 13 a

4 d 14 d

5 d 15 a

6 c 16 a

7 d 17 d

8 d 18 a

9 a 19 a

10 c 20 a

335

STATE BANK LEARNING CENTER, PANCHKULA ACC/KISAN CREDIT CARD (KCC) AGR- VI 1. KCC limit comprises of financing for a) Crop production and consumption credit. b) Expenses related to ancillary activities. c) Both a & b d) None of the above 2. Collateral security is required for ACC/KCC above a) Rs.25000 b) Rs.50000 c) Rs.75000 d) Rs. 1,00,000/3. For ACC under tie-up arrangement/contract farming obtaining collateral is waived upto a) Rs.50000 b) Rs.75000 c) Rs.1.00 lac d) Rs.2 lakhs 4. For KCC above Rs 1,00,000 if there are genuine difficulties in creation of mortgage/ Charge over land what instructions need to be followed? a) any other appropriate security can be obtained. b) Suitable third party guarantee can also be obtained c) prior permission of controlling authority is required d) all above 5. Margin stipulated for ATL or ACC/KCC of Rs. 1,00000/- is a.10% b.15% c.25% d.nil 6. KCC limit is valid a) For ever b) For 1 year c) For 18 months d) For 3 years 336


7.KCC holders up to the age of ---------------------years are covered under Personal Accident Insurance Scheme. a) 50 c) 70

b) 65 d) No age limit

8. Personal Accident Insurance Scheme for KCC holders covers risk up to Rs. ----- in case of death due to accident or permanent total disability i.e. (loss of 2 eyes/2 limbs / 1 eye and1 limb) a) Rs. 1, 00,000/-. b) Rs. 50000/c) Rs. 25000/d) None of the above 9.Amount of annual premium to be paid to designated Insurance Co. under Personal Accident Insurance Scheme is ---------------------------a) 1% of KCC limit per KCC holder b) 2% of KCC limit per KCC holder c) Rs.15/- per KCC holder d) None of the above 10.Under Personal Accident Insurance Scheme, the amount of premium is borne by— a) KCC holder b) Bank c) Shared by Bank and borrower in the ratio of 2:1 d) None of the above 11.Which insurance company is authorised to undertake servicing of business under PAIS? a) National Insurance Company Ltd. b) The Oriental Insurance Company Ltd. c) The New India Assurance Company Ltd. d) Any of the four companies as per zone wise allocation 12.What is the process of premium payment under PAIS? a) Branches sent direct to the company b) Sent by ABU at LHO c) Paid at bank level by the Central Office d)Regional Offices of Commercial Banks will pay the premium to the nearest designated office of the Insurance Company along with the list of KCC holders 337


13.Time limit for lodging claims under Personal Accident Insurance Scheme is---a) 30 days. b) 60 days. c) 3 months d) None of the above 14. The progressive farmers can be financed up to a maximum of ____ under KCC a) Equal to SOF advised by DLTC. b) Upto thrice above SOF. c) Upto twice SOF by DLTC. d) Assessed on case to case basis 15. While fixing limit of the borrower under KCC, the branch may take into Account production credit requirements of the farmer for________ a) A Month b) A Quarter c) A Half- Year d) A Year 16. The credit limit of borrower under KCC scheme is required to be reviewed---a) Every Year b) After Two Years c) After Three Years d) Not reviewed 17.Which of the following requirements are treated as ancillary needs --------------a.Fuel/Power cost. b.Repair & maintenance of Agricultural Machinery/Equipments c.Minor investment of short term nature & Post harvest expenses. d.All of the above . 18. The farmer- borrower can avail contingent credit needs under KCC up to ____ a) 10% of peak credit limit, max. Rs. 5000/b) 15% of peak credit limit, max. Rs. 10,000/c) 20% of peak credit limit granted for production purpose d) 20% of total production credit limit

338

STATE BANK LEARNING CENTER, PANCHKULA 19. Margin stipulated for Rs. 2.00 lacs under ACC/KCC based on SOF is a) Nil b) 15 – 25% c) 10 – 15 % d) 20 – 25 % 20. Minimum and maximum loan to be sanctioned under KCC are a)5000/- and no limit b)5000/- and 1.00 crore c)3000/- and no limit d)none of above (*Minimum KCC limit for Uttaranchal State is Rs1,000/-) 21.The objectives for launching KCC are ________________. a) To provide Credit Cards like SBI Card to get payment from any part of the Country. b) To provide Credit Cards to farmers to avail loan facility within the district. c) To provide adequate and timely support from banking system to the farmers for their short term production credit needs for cultivation of crops, purchase of inputs, in a flexible and cost effective manner. d) All of the above. 22. The following farmers are eligible to get KCC _______________ a.Existing borrowers of the branch/ bank having good track record for the last Two years. b Requiring production credit limit of Rs. 3000/- and above. c.New borrowers including good borrowers of other banks, provided Branch Manager is satisfied with their Credit-worthiness. d.All of the above. 23. The peak credit limit under KCC is fixed on the basis of__________ a) Operational land holding, cropping pattern and scale of finance as Recommended by District Level Technical Committee (DLTC). b) Ancillary needs of the borrower c) Contingent needs of the borrower d) All of the above. 24. Following needs of the farmer are treated as contingent needs under KCC a) Family maintenance expenses. b) Educational and Medical Expenses. c) Social & Religious ceremonies d) Al l of the above. 339


25.Credit limit of the borrower under KCC is required to be renewed______ a) Every year b) After 2 years c) Once in 3 years d) Not required 26. Repayment of Crop loan/KCC should be --------a) Quarterly b) Half yearly c) Linked with Harvesting and Marketing of the Crop. d) None of the above 27.New applicants under crop loan/KCC are not to be insisted upon for submitting ‘No dues” certificates up to a loan limit of Rs.-------------. a) Rs. 10000/b) Rs. 25000/c) Rs. 50000/d) None of the above 28. For Crop loans up to Rs. 25000/-, we recover inspection charges @-------a.Rs.2.50 per inspection with minimum of Rs.10/b.Rs.10/- per inspection with minimum of Rs.100/c.No charges d.None of the above 29. Cheque book can be provided to a. A literate KCC borrower b. A literate KCC borrower with sanction limit of Rs 25,000/- and above c. A literate KCC borrower with sanction limit of Rs 1 lakh and above d. Any borrower availing KCC 30. ATM card can be provided to a. All literate KCC account holders b. A literate KCC borrower with sanction limit of Rs 25,000/- and above c. A literate KCC borrower with sanction limit of Rs 1lakh and above d. Any borrower availing KCC

340


Answers ACC/KISAN CREDIT CARD (KCC) AGR- VI 1 c 11 d 21 c

2 d 12 d 22 d

3 d 13 a 23 d

4 d 14 c 24 d

5 d 15 d 25 c

6 d 16 a 26 c

7 c 17 d 27 b

8 b 18 c 28 c

9 c 19 a 29 b

10 c 20 c 30 a

341

STATE BANK LEARNING CENTER, PANCHKULA KISAN GOLD CARD & AGRI CLINIC & AGRI BUSINESS CENTRE AGR- VII 1. Under KGC the quantum of loan is a) Maximum Rs.10 lacs b) Rs.5 lacs minus outstanding in the existing ATL account c) 50 % of the value of the land to be mortgaged as collateral security or 5 times the annual Farm income which ever is less, with a maximum Rs. 10 lacs minus term loan out standing if any at the time of application d) All of the above 2. Consumption loan under KGC can be granted up to a) 20% of the eligible KGC limit b) 30% of the eligible KGC limit c) 40% of the eligible KGC limit d) 50% of the eligible KGC limit 3. Following farmers are eligible to get Kisan Gold Card--------------a) All Farmers irrespective of their previous track record. b) Only selected farmers with handsome land holding. c) Farmers irrespective of their land holdings, with good track record of repayment in their ACC & ATL accounts for the last two years as on the date of application. d) None of the above 4. What is the minimum margin for consumption loan in KGC scheme? a) 10% b) 15% c) 25% d) 30% 5. The loan sanctioned under KGC scheme is required to be utilised by farmer for___________ a) Purchase of agricultural implements, land development, Bullocks & carts. b) Repair of farm machinery. c) Any other domestic needs like expenditure on account of children's education, marriage, medical expenses etc. d) All of the above 6. Under Kisan Gold Card Scheme, a minimum margin of _______% in the case of invesrment purpose and _______% in case of consumption purposes to be maintained. a.5% & 10% respectively b.15% & 20% respectively c.20% & 25% respectively d.10% & 30% respectively 342


7. How many accounts can be opened by the borrower financed under KGC----a) 1 b) 2 c) 5 d) any number of a/cs 8. The Kisan Gold Card is valid for a period of ________years. a) One b) Two c) Three d) Five 9. The loans sanctioned under Kisan Gold Card are treated as --------accounts. a) ACC b) ATL c) Term Loan d) None of the above 10. What is the usual norm of repayment under KGC-------a) 3 to 4 years b) 4 to 5 years c) 6 to 7 years d) 8 to 9 years 11. Kisan Gold Card scheme (KGC) is applicable to a) Small and Marginal farmers only. b) Progressive farmers only c) Highly progressive farmers only d) All farmers irrespective of the size of their land holdings. 12. What are the activities that have recently been excluded from the list of activities financed under KGC? a) Purchase of land b) construction of farm house c) purchase of tractor and accessories d) All the above 13. KGC limit can be sanctioned to a. Existing Borrowers maintaining standard loan accounts for last 2 years. b. Farmers who have closed their accounts without any default & who are not our current customers c.Good borrowers of other banks provided they liquidate their outstanding with other banks d. All the above

343

STATE BANK LEARNING CENTER, PANCHKULA 14. KGC limit can be disbursed for a) purchase of two wheelers b) purchase of agricultural land c) construction of House d) all of above 15. What is the repayment period for loans granted for setting up of Horticulture Orchards? a.5 years b.7 years c. 9 years d.10 years 16. Is there any mechanism for verification of enduse of funds given under KGC? a.Not required where assets are created b.Proof required in case of farm machinery c. To ensure the end use of funds by verification of assets and collection of invoices/cash receipts, within one month from the date of release of the funds d. Not required in any case 17. Loan amount sanctioned under KGC can be disbursed in cash upto a.50% of loan amount b.Only consumption credit component c. No cash disbursal is allowed d. Full extent of credit limit 18. In case of Agri-clinics and Agri-business centres, norms for obtaining collateral security have been relaxed for limits up to ---------. a) Rs. 10000/b) Rs.25000/c) Rs. 50000/d) Rs. 500000/19. In case of Agri-clinics and Agri-business centres, norms for obtaining margins have been relaxed for limits up to --------a) Rs. 10000/b) Rs.25000/c) Rs. 50000/d) Rs. 500000/20. Maximum Quantum of loan financed for an individual under Agriclinics & ABC is a) Rs.3 lacs b) Rs.5 lacs c) Rs.10 lacs d) Rs.25 lacs 344

STATE BANK LEARNING CENTER, PANCHKULA 21. Maximum quantum of loan that can be financed under Agriclinics & Agri business centre to be taken up as a group activity is a) Rs.20 lacs b) Rs.30 lacs c) Rs.50 lacs d) Rs1.00 crore 22. Advance for Agri-clinics and Agri-business centres is classified under a.Direct Agriculture Advance b.Indirect Agriculture Advance c.50% as Direct Agriculture Advance d.C&I advance 23. Advance for Agri-clinics and Agri-business centres can be repaid within a. 3-5 years with a moratorium period of 2 years b. 5-10 years with a moratorium period of 2 years c. 7-12 years with a moratorium period of 2 years d. 10 -15 years with a moratorium period of 2 years 24. What is the objective of setting up of Agri-clinics and Agri-business centres? a. To augment support and extension services for agriculture. b. To strengthen transfer of technology and extension of services c. To provide self employment opportunities to technically trained persons. d. all above 25. What is the margins for limits upto Rs 5 lac? a. 5% b. 10% c. Nil d. 15% 26. What is the margins for limits more than Rs 5 lac? a. 5-10% c. 25%-30%

b. d.

10-15% 15-25%

27. Whether loans under ACABC are covered under CGTMSE scheme a. Yes, all activities irrespective of loan amount b. Yes, all activities above Rs. 5 lacs c. Yes, few activities are covered d. No 28. What is the quantum of NABARD refinance available under the scheme? a. 25% b. 100% c. 10% d. Not available

345

STATE BANK LEARNING CENTER, PANCHKULA 29. What are instruction regarding educational qualification if the group consists of 5 or more persons? a. All should be Agriculture Graduate b. one among a. should be a post graduate in agriculture c. minimum 2 among group should be Agri Graduates d. all except one of them would have to be agriculture graduate trained under the scheme and the remaining could be non-agri graduate with experience in business development and management. 30. What is the quantum of subsidy available? a. No subsidy b Credit linked capital subsidy @25% of the capital cost of the project funded through bank loan would be eligible c. 33.33% in respect of borrowers belonging to SC, ST, women and other disadvantaged sections and those from North-Eastern and Hill States. d. both b. & c. Answers KISAN GOLD CARD & AGRI CLINIC & AGRI BUSINESS CENTRE AGR- VII

1 c 11 d 21 c

2 a 12 d 22 b

3 c 13 d 23 b

4 d 14 a 24 d

5 d 15 c 25 c

6 d 16 c 26 d

7 c 17 d 27 c

8 a 18 d 28 b

9 b 19 d 29 d

10 c 20 c 30 d

346


ARTHIAS PLUS, CROP INSURANCE & PRODUCE MARKETING LOAN AGR-VIII 1. What is the eligibility criteria under ARTHIAS PLUS scheme? a) Commission agents enjoying good reputation and holding a valid license from the market yard/ board and are in the line of business for the past 3 years. b) Commission agents having receivables from farmers only. c) Commission agents functioning in rural and semi urban markets/mandis. d) all above 2. What is the type of advance ARTHIAS PLUS scheme? a) CC Hypothecation stocks b) CC Hypothecation of book debts not older than 6 months c) Demand Loan d) Term loan 3. What is the periodicity of interest application? a) Monthly b) Quarerly c) Half yearly coincide with harvesting season d) annualy 4. What is the procedure of obtaining statement of eligible book debts? a) Monthly b) yearly c) Half yearly intervals–verified from borrower’s books of a/c or audited financial statement. d) Not obtained 5. Margin stipulated for a loan under ARTHIAS PLUS is a) 10% b) 15% c) 25% d) 40% 6. Maximum repayment period that can be given under ARTHIAS PLUS is a) 12 months b) 6 months c) 15 months d) 24 months 7. Collateral security requirement for financing under Arthias Plus scheme upto Rs25.00lacs is a. No security is required b. Agricultural Land c. Residential/ commercial property(non agri) worth 1.5 times of the advance. d. Either b or c 347


8. A loan of above Rs.10 lacs to Arthias (against receivables) is classified under ___________segment . a) Agriculture b) SIB c) C&I d) Any segment to suit branch convenience 9. Bank debts / receivables not older than __ months are eligible for finance under "Arthias Plus" a) 3 b) 6 c) 9 d) 12 10Maximum Loan amount under the scheme is Rs--------lacs a)25 b)50 c)15 d)30 11. Loans under the scheme is treated as a )indirect agriculture finance b) direct agriculture finance c)Small business finance d)Commercial advance 12. Crops covered under the National Agricultural Insurance Scheme are a) All Cereals and pulses b) All Fruits and vegetables c) Only notified crops in the country d) None of the above 13. The implementing agency for NAIS is a) United India Insurance Co. Ltd. b) Oriental Insurance Co. c) Agricultural Insurance Company of India Ltd. d) GIC 14. Loan under Produce Marketing Loan scheme is sanctioned ------------------. a) To provide finance to farmers to purchase produces from the market. b) To help farmers to avoid distress selling. c) both a & b d) None of the above

348

STATE BANK LEARNING CENTER, PANCHKULA 15. Margin in case of loan sanctioned against goods stored in farmer’s godown is -----% a) 50 b) 40 c) 30 d) 10 16. PML is treated as----a) Direct finance to agriculture b) Indirect finance to agriculture c) Clean loan d) Group loan 17. The loan amount, can be financed under Produce Marketing Loan scheme is a) 50% of the value of produce, Maximum Rs.5.00 lac b) 60% of the value of produce, Maximum Rs.5.00 lac c) Maximum Rs.5.00 lac, no linkage with value of produce d) 60% to 80% of value of produce, Maximum Rs.10.00 lacs 18. What is maximum repayment period permissible for loan sanctioned under Produce Marketing Loan scheme? a) 6 months b) 12 months c) 18 months d) none of the above 19. Under Produce Marketing Loan scheme, full insurance cover to be obtained, if value of stock exceeds---------------------a) Rs.10, 000/b) Rs.15, 000/c) Rs.25, 000/d) No insurance required 20. Financing under “Produce Marketing Loan” can be made to a) All non-overdue ACC/KCC Borrower of our branches b) All crop loan Borrowers of other banks c) Non-borrower farmers d) All of the above 21.In case of loan sanctioned against warehouse receipt under Produce Marketing Loan, the collateral security requirement upto Rs 10 lakhs is a.100% of loan amount b. 50% of loan amount c. No collateral security is required d. 200% of loan amount

349

STATE BANK LEARNING CENTER, PANCHKULA 22. PML is helpful in _______________ a) Increasing branch advances b) improving recovery position c) avoiding distress sale by farmer d) all the above 23. Margin against warehouse receipt issued by Central/State Warehousing Corpn is ____% & _____% for repayment period of 6 months and for >6months but within 12 months respectively a) 20 , 30 b) 25 , 35 c) 10 , 15 d) 30 , 40 24. . Maximum Produce Marketing Loan loan under Priority sector is a) Rs. 5 lacs b) Rs. 2 lacs c) Rs. 10 lacs d) Rs. 25 lacs

Answers ARTHIAS PLUS, CROP INSURANCE & PRODUCE MARKETING LOAN AGR-VIII 1 d 11 a 21 c

2 b 12 c 22 d

3 a 13 c 23 a

4 c 14 b 24 c

5 d 15 b

6 b 16 a

7 c 17 d

8 c 18 b

9 b 19 b

10 b 20 d

350


LAND PURCHASE SCHEME, FINANCING RURAL GODOWN , COLD STORAGE, SCHEME FOR FINANCING TO PRIVATE COLD STORAGES/WARE HOUSES AGR - IX 1. Loan under Land Purchase scheme cannot be considered for which of the following purposes a) cost of land b) registration charges and stamp duty. c) purchase of farm equipment. d) building of house. 2.Gestation period allowed under Land purchase scheme if land is to be developed is----------.years a) 1-2 b) 2-3. c) 3-4 d) 4-5. 3.Minimum margin required for financing under Land Purchase scheme is--------a) 15% b) 25% c) 30% d) No margin is required 4.Maximum loan amount, which can be financed under Land Purchase scheme is----------a) Rs. 2.00 lac b) Rs. 5.00 lac c) Rs.10.00 lac d) No limit 5. What is maximum repayment period permissible for loans sanctioned under Land Purchase scheme a) 5-7 years after expiry of gestation period b) 7-8 years after expiry of gestation period c) 9-10 years after expiry of gestation period d) None of the above 6. Loans for purchase of agricultural land can be sanctioned to a) Small and Marginal farmers b) Tenant cultivators, share croppers & landless agricultural labourers c) Both a & b d) None of the above

351


7. “Gramin Bhandaran Yojna” is financing for construction of a) Farm House b) Residential House in rural area c) Rural Godown d) None of the above 8. Normal Margin Requirement under ‘Gramin Bhandaran Yojana’ is a) 10% b) 15% c) 20% d) 25% 9. Margin requirement for projects in NE States & hilly areas and SC/ST beneficiaries under Gramin Bhandaran Yojana is a) 5% b) 10% c) 20% d) 25% 10. Maximum subsidy provided under “Gramin Bhandaran Yojana” for individuals / Companies & Corporates is a) 15 % maximum Rs. 28.12 lacs b) 15% maximum Rs. 25.56 lacs. c) 20% maximum Rs. 22.50 lacs. d) 20% maximum Rs. 25 lacs. 11. Maximum subsidy provided under “Gramin Bhandaran Yojana” for farmers, Agri graduates, Cooperatives, CWC/State warehouse corporation is a) 20% maximum of Rs. 25.56 lacs b) 25% maximum of Rs. 46.87 lacs c) 25% maximum of Rs. 40.50 lacs d) 25% maximum of Rs. 50 lacs 12. Maximum subsidy provided under “Gramin Bhandaran Yojana” for projects in NE states hilly areas above 1000 MSL and for SC/ST individuals and their cooperatives is a) 25% maximum of Rs. 40.26 lacs b) 25% maximum of Rs. 50.56 lacs c) 33.33% maximum of Rs. 40 lacs d) 33.33% maximum of Rs. 62.50 lacs. 13. Subsidy provided to cooperatives for renovation of godowns under “Gramin Bhandaran Yojana” is a) 10% b) 25% c) 30% d) 33.33% 352


14. Subsidy under Gramin Bhandaran Yojana is provided by a) RBI. b) NABARD. c) Minister of rural development d) Ministry of Agriculture 15.What amount of subsidy is released as advance subsidy on sanction of loan by the bank ? a) 25% b) 22% c) 50% d) 33% 16.Subsidy under Capital Investment Subsidy Scheme for construction of Rural Godowns is restricted to the maximum capacity of -------------a) 1000 tonne b) 5000 tonne c) 10,000 tonne d) No ceiling 17. Maximum repayment period for loans under Gramin Bhandaran Yojana is a. 3 years b. 5 years c. 11 years d. 15 years 18. Maximum repayment period for financing Cold Storages is a.5years b.9 years c.11 years d.15 years 19. The capital investment subsidy (back ended) is released for construction of cold storage by a) APEDA b) Ministry of agriculture & co-operation c) National Horticulture Board d) NABARD 20. Loans to pvt. cold storages/ware houses designed to store agriculture produce irrespective oflocation is treated as a. Direct Agricultural Advance b. Indirect Agricultural Advance c. Advance under C&I segment d. Advance under SSI segment 353


Answers LAND PURCHASE SCHEME, FINANCING RURAL GODOWN , COLD STORAGE, SCHEME FOR FINANCING TO PRIVATE COLD STORAGES/WARE HOUSES AGR - IX 1 d 11 b

2 a 12 d

3 a 13 b

4 b 14 b

5 c 15 c

6 c 16 c

7 c 17 c

8 d 18 b

9 c 19 c

10 a 20 b

354

STATE BANK LEARNING CENTER, PANCHKULA SELF HELF GROUP AGR-X 1. The concept of SHG originated from a) Sri Lanka b) Pakistan c) Bangladesh d) Indonesia 2. The nodal agency for implementation of the concept of SHG in India is a) RBI b) NABARD c) RRBs d) Central Govt 3. Originator of the concept of SHG is a) Prof. Mohammed Yunus b) Prof. Yunus Khan c) Prof. Mohammed d) Prof. Salman Khan 4. SHG can be financed a) 6 months after opening the saving Bank account b) 3 months after formation of group c) 6 months after formation of group d) 12 months after formation of groups 5. In SHG finance, the Inter-se Agreement is executed by a) Bank b) NGO c) President & Secretary of the SHG d) All the members of the SHG 6. VVV stands for a) Village Vikas Vahini b) Volunteer Village Vahini c) Vikas Volunteer Vahini d) None of the above 7. ------is instrumental in high % of recovery in respect of advances to SHGs. a) NABARD b) RBI c) Peer Pressure d) None of the above

355

STATE BANK LEARNING CENTER, PANCHKULA 8. SHGs and Credit linkage means----------------a) When bank staff forms SHGs. b) When SHG opens a SB account in the bank c) When SHGs are linked to the Bank for financing d) None of the above 9. Who is responsible for repayment of SHG loans? a) The NGO who formed the group b) The leader of the group c) All the members jointly and severally d) None of the above 10. Who decides the rules and regulations for SHG ? a) The facilitator (who forms the group) b) The banker c) The leader of the group d) All the members of the group with their collective wisdom. 11. What is maximum Quantum of finance for financing to SHG ? a) Up to Rs. 50,000/b) Up to 4 times of the corpus of the group Max. Rs. 50000/c) Up to 4 times of the corpus of the group d) None of the above 12. Corpus means____________ a) Balance held in Saving Bank account of the SHG b) Total of balances held in cash, Bank accounts & loans to members etc. c) Requirements of all the members of the group. d) None of the above 13. Incentive provided to NGO for credit linking to SHG is a) Rs.500/b) Rs.750/c) Rs.250/d) No incentive is provided 14. Collateral Security is exempted for financing SHG for any industrial activity upto a) Rs.1.00 lacs b)Rs. 5.00 lacs c) Rs.10.00 lacs d) Rs.No collateral is obtained

356


15. SB account and loan account to SHG should be opened in the name of --------a) The leader of the group b) Office bearers of the group c) All the members of the group jointly d) Self Help Group only 16. Six month period for considering bank linkage is reckoned from the date of a) Formation of group b) Opening of SB account c) Commencement of internal lending d) None of the above 17. SHG Bank credit linkage can take the form of a) SHG’s financed directly by banks b)SHG’s financed directly with NGOs facilitation c)Indirect finance to SHGs through NGOs/MFIs d)All of the above 18. What documents are to be obtained for financing to SHG? a) Application, Inter-se agreement, Articles of Agreement, sponsorship letter,arrangement letter b) AB-1, AB-3 or AB-2, Arrangement Letter c) Tripartite agreement between the Bank, SHG and NGO d) None of the above 19. Financing of SHGs is preferred because__________________ a) 100% NABARD refinance is available b) it is priority sector lending c) Branches get remuneration in TPM d) All the above 20. While sanctioning loan to SHG , purpose for which loan is required is decided by a) Branch Manager b) DRDA c) BDO d) Group Answers SELF HELF GROUP AGR-X 1 c 11 c

2 b 12 b

3 a 13 b

4 c 14 b

5 d 15 d

6 c 16 a

7 c 17 d

8 c 18 a

9 c 19 d

10 d 20 d

357


SELF HELF GROUP (I) AGR-XI 1. Incentives to NGOs for credit linking a SHG is a) 250/b) 500/c) 750/d) 1,000/2 An SHG should not consist of more than ----persons a)20 b)10 c)12 d)15 3. Purpose of the loan to SHG can be ___________ a) income generation b) social needs like housing,education etc c) debt swapping d) all the above 4. Ideally what is the minimum and maximum no. of members in an SHG? a) 5-10 b) 10-20 c) 20 -25 d) None of the above *However, the minimum may be reduced to 5 in Hilly Area/Tribal Area/Disabled/Minor Irrigation activity. 5. Six months period for considering Bank Linkage is reckoned from the date of a) Formation of group b) Opening of SB a/c c) Commencement of internal lending d) None of the above 6. To be eligible for direct bank credit linkage which of these conditions is not compulsory a) Group should have been in existence for a period of 6 months b) Proper maintenance of accounts should be there c) The group should have undertaken savings and credit operations through its own resources. d) Village panchayat leaders should be included as office bearers of SHG

358


7. Which of the following is not a criterion for NGO to be eligible for payment of incentive a) Should be registered under Societies act/trust act b) Minimum period of existence should be 3 years. c) It should not be blacklisted d) It should have extended finance to SHG 8. Out of the incentive given to NGO ----% is given on formation of SHG and opening of Saving Bank a/c a) 40 b) 30 c) 50 d) 20 9. Under SHG Gold Card minimum loan that can be given is Rs------a) 2.00lacs b) 0.50lacs c) 1.50lacs d) 2.50lacs 10. While sanctioning loan to SHG – purpose for which loan is required is decided by a) Branch Manager b) DRDA c) BDO d) Group 11. The important benefits to the members of Group is a) Social empowerment. b) Financial empowerment c) a & b d) None of the above 12. Processing charges for SHG loans are a) nil b) Rs500 per loan c) Rs250 per loan d) Rs1000 per loan 13. NABARD provides refinance upto ----%of loan amount given to SHG . a) 50 b) 100 c) 75 d)60 359


14. Minimum loan amount under SHG credit card is ----------. a) Rs. 20000/b) Rs. 15000/c) Rs. 50000/d) None of these 15. SHG credit card is valid for ------ years (a) 3 (b) 4 (c) 2 (d)5 16. To be eligible for SHG credit card which of the following conditions need not be fulfilled. (a) Should have reached the third level of linkage and have a minimum credit limit of Rs50000/(b) Should be regular in repayment of earlier loans (c) Minimum 2 members should be literate. (d) Should have adopted at least 2villages 17. Margin in case of SHG credit card is (a) 20% (b) nil (c )10% (d) 5% 18. SHPI

stands for

a) Self help Group Promoting Institutions b) Self help Group participating individuals c) Safehealth Promoting Institutions d) Safe health participating Institutions 19.Grameen Shakti is an _____________for SHG members. a) insurance product from SBI life ( now discontinued ) b) bank’s loan scheme c) insurance product of New India Assurance co. d) Non of the above

360


20. Outsourcing of recovery in advances through SHG is for a. Govt. sponsored schemes— NPAs b. Govt. sponsored schemes-Both Standard and NPAs c. Bank Regular scheme-Only NPAs d. Both b&c 21. Selection of SHGs for outsourcing of recovery in advances is vested with a. Branch b. Region c. Module d. LHO 22. Which of the following is not correct in respect of Outsourcing of recovery in advances through SHG a. SHGs will be paid a commission of 5% for Standard Assets b. SHGs will be paid a commission of 10% for NPAs c. It will be paid by debit to Charges Account- monthly d. It will be paid by debit to Interest Account- monthly

Answers SELF HELF GROUP (I) AGR-XI 1 c 11 c 21 a

2 a 12 a 22 d

3 d 13 b

4 b 14 c

5 a 15 a

6 d 16 d

7 d 17 b

8 c 18 a

9 a 19 a

10 d 20 d

361


GRAM NIWAS AND SAHAYOG NIWAS AGR- XII 1. “Gram Niwas is a scheme for financing for construction / repair/renovation of a a) Farm Pump Shed. b) Residential House / work shed. c) Quarters for Farm Labourers. d) Hotels in rural / semi-urban areas. 2. Eligible category of Borrowers under “Gram Niwas” are a) individuals having satisfactory accounts with us b) Members of SHG having saving / loan account with us c) both the above d) neither of a and b 3. Maximum loan for construction/purchase of new house member under “Gram Niwas” is a) Rs. 50,000 b) Rs. 5 lac c) Rs. 2 lac d) Rs. 2.5 lacs

that can be given to a

4. Maximum loan under “Gram Niwas” for repair / renovation / extension of a house and or work space is a) Rs. 0.75 lacs b) Rs. 1 lac c) Rs. 2 lac d) Rs. 1.50 lacs 5. Maximum loan under “Gram Niwas” for purchase of land is a) Rs. 0.30 lacs b) Rs. 1 lac c) Rs. 2 lac d) Rs. 1.50 lacs 6. Margin requirement under “Gram Niwas” upto a loan of Rs. 50,000 is------- of project cost a) Nil b) 5% c) 10% d) 20%

362

STATE BANK LEARNING CENTER, PANCHKULA 7. Margin requirement under “Gram Niwas” for a loan above Rs. 50,000 and upto 5 lacs is------- of project cost a) Nil b) 5% c) 15% d) 20% 8. Margin requirement under “Gram Niwas” for a loan above Rs. 5 lacs is------- of project cost a) Nil b) 5% c) 15% d) 20% 9. Gram niwas scheme is applicable in a) semi urban and urban areas b) Semi-urban areas and rural areas c) all areas d).only rural areas 10. How is loan amount calculated in respect of applicants having average annual income upto Rs 40000 ? a) Maximum permissible Installment to Income Ratio should be 25% b) Maximum permissible Installment to Income Ratio should be 45% c) Maximum permissible Installment to Income Ratio should be 55% d) Maximum permissible Installment to Income Ratio should be 60% 11. How is loan amount calculated in respect of applicants having average annual income above Rs 40000 and upto Rs 2 lac ? a) Maximum permissible Installment to Income Ratio should be 25% b) Maximum permissible Installment to Income Ratio should be 45% c) Maximum permissible Installment to Income Ratio should be 55% d) Maximum permissible Installment to Income Ratio should be 60% 12. How is loan amount calculated in respect of applicants having average annual income above Rs 2 lac upto Rs 5 lacs ? a) Maximum permissible Installment to Income Ratio should be 25% b) Maximum permissible Installment to Income Ratio should be 45% c) Maximum permissible Installment to Income Ratio should be 55% d) Maximum permissible Installment to Income Ratio should be 60% 13. How is loan amount calculated in respect of applicants having average annual income above Rs 5 lac ? a) Maximum permissible Installment to Income Ratio should be 25% b) Maximum permissible Installment to Income Ratio should be 45% c) Maximum permissible Installment to Income Ratio should be 55% d) Maximum permissible Installment to Income Ratio should be 60%

363

STATE BANK LEARNING CENTER, PANCHKULA 14. “Sahayog Niwas” is housing loan scheme given to a) Individual members of SHGs. b) SHGs for onward lending to its members. c) NGOs for lending to SHGs. d) All the above. 15. Loans under “Sahayog Niwas” can be sanctioned for a) Purchase of plot of land & constructing house. b) Construction of house and / or a workspace / shed. c) Repairs / Renovation / Extension of existing house or a workspace. d) All the above 16. Loans under “Sahayog Niwas” can be sanctioned to SHGs functioning in a) Rural areas b) Semi-urban areas c) Urban areas d) Both a & b above 17. Maximum period of repayment under Sahyog Niwas is -----a) 20. b)15. c) 5. d)10. 18. ‘Sahayog Niwas’ is a housing scheme operational in a) Rural areas b) Semi-urban c) Both Rural and Semi-urban d) None of these 19. SHGs which are in existence for more than __ years with good track record are eligible under Sahyog Niwas. a) 4 b) 2 c) 10 d) None of these 20. Maximum amount that can be sanctioned under Sahyog Niwas.per member of SHG is----. a) Rs. 1.00 lacs b) Rs. 50,000/c) Rs. 10,000/d) No ceiling

364

STATE BANK LEARNING CENTER, PANCHKULA 21. Primary security for loan under Sahyof niwas is. a) Land b) Group guarantee of SHG members c) any third pary guarantee d) None of these 22. Under Sahyog Niwas scheme , the loan amount is maximum ----times of corpus fund a) 10 b) 5 c) 15 d) 20 23. Maximum repayment period for loan sanctioned under Gram Niwas is ____ years . a) 15 b) 10 c) 5 d) None of these Answers GRAM NIWAS AND SAHAYOG NIWAS AGR- XII 1 b 11 b 21 b

2 c 12 c 22 a

3 b 13 d 23 a

4 c 14 b

5 b 15 d

6 c 16 d

7 c 17 b

8 d 18 c

9 b 19 b

10 a 20 b

365

STATE BANK LEARNING CENTER, PANCHKULA SGSY AGR- XIII 1. SGSY launched by GOI from a) 01.04.1999 b) 01.04.2000 c) 01.01.1999 d) None of the above 2. SGSY replaces the earlier poverty alleviation programmes viz. IRDP, DWCRA, GKY, MWS, SITRA and TRYSEM by. a) organizing the rural poor into Self Help Groups b) financing to existing SHGs c) financing individuals d) All of above 3. SGSY is funded by---------------a) Central Government b) State Government c) Central and State Govt. in the ratio of 75:25 d) None of the above 4. SGSY seeks to promote self employment opportunities to rural poor through promotion of micro-enterprises a) In cluster b) Scattered, based on the intensity of poverty c) Choice of the BM d) None of the above 5. Poor families identified for assistance under SGSY are called: a) Beneficial b) Swarojgaris c) Borrower d) None of the above 6. Objective of SGSY is to bring poor families above poverty line by providing them with income generating assets through a) Bank credit b) Govt. subsidy c) a & b d) None of the above 7. Target group under SGSY consists of a) All BPL families b) All members of BPL families c) All above poverty line families d) None of the above 366


8. Which among the following is not correct in case of financing to SGSY a) Cluster approach under SGSY helps in providing Backward and Forward linkages in a cost effective manner. b) Multiple doses of credit can be provided in deserving cases based on the credit history of swarojgaris. c) Primary responsibility of identifying the key activities in the cluster rests with the Branch Manager d) Primary responsibility of identifying the key activities in the cluster rests with the Block Level SGSY Committee 9. The authority empowered to add or delete any activity in the list of activities under SGSY a) BDO b) Block level SGSY committee c) District level SGSY committee d) None of the above 10. First grading test enables the group eligible for a) Revolving fund (from Govt.) and matching loan from banks. b) Subsidy and loan for economic activity. c) Both d) None of the above 11. Eligibility of groups for First Grading Test (FGT) a) All newly formed groups b) Groups completed minimum period of 6 months c) Groups completed minimum period of 4 months d) None of the above 12. Pre-existing groups who have completed 6 months from the date of formation can be put to FGT a) after 6 months from the date of identification b) straight away without waiting for further period of 6 months c) 3 months from the date of identification d) none of the above 13. The amount of revolving fund is a) Rs. 5,000/b) equal to group corpus fund subjected to a minimum of Rs. 5,000/- and maximum Rs.10,000/c) equal to group corpus fund d) none of the above

367

STATE BANK LEARNING CENTER, PANCHKULA 14. Revolving Fund assistance can be made available to group through a) Cash credit a/c b) Term loan c) Demand loan d) none of the above 15., For Revolving Fund Assistance under SGSY, maximum eligible loan for SHG is a) Rs. 15,000/b) 4 times of corpus fund c) Rs. 10,000/d) None of the above 16. Purpose of undertaking second grading test is : a) To assess the groups ability to avail R.F. b) To assess, whether the group has completed Micro Credit stage successfully and worth financing Micro – enterprise development stage. c) To assess the groups corpus. d) None of the above. 17. All groups after sanction but before disbursement of loan should undergo: a) Basic Orientation Programme b) Advance Skill Development Programme c) Minimum Skill requirement Programme d) None of the above 18. Under SGSY subtarget for women is a) 60% b) 50% c) 40% d) None of the above 19. Under SGSY for individuals other than SC/ST, subsidy ceilings is a) 40% Maximum Rs. 10,000 b) 50% Maximum Rs. 10,000 c) 30% Maximum Rs. 7,500 d) None of the above 20. Subsidy eligibility for individual swarojgaris who belong to SC / STs a) 50% Maximum Rs. 7,500 b) 60% maximum Rs. 10,000 c) 50% maximum Rs. 10,000 d) None of the above

368


Answers SGSY AGR- XIII 1 a 11 b

2 d 12 b

3 c 13 b

4 a 14 a

5 b 15 b

6 c 16 b

7 a 17 a

8 c 18 c

9 c 19 c

10 a 20 c

369


SGSY (i) AGR- XIV 1. Loan application under SGSY ordinarily should be disposed off with in a period of ----days and not later than ----a) One week, 1 month b) 10 days, 2months c) 15 days, 1 month d) None of the above 2.Maximum subsidy for swarojgaris under irrigation projects. a) Rs1.00lac b) Rs1.5lac c) No ceiling d) Rs2.5lac 3. The unit cost as fixed by ------------------- should be taken into consideration as indicative cost while fixing the unit cost for the farm sector when identifying key activities for assistance of poor families. a) regional Committee of NABARD b) regional Committee of RBI c) Distt Committee of DRDO d)Distt Committee of SGSY 4. Disbursements under SIB sector may be disbursed in cash upto a) Rs. 20,000 b) Rs. 10,000 c) Rs. 30,000 d) None of the above 5. In case of loans for individuals upto Rs. 50,000/- and to group upto Rs5.00lacsecurity to be obtained wherever movable assets are created are --------. a) Only hypothecation of assets created Out of Bank’s finance b) Mortgage of landed property. c) a & b d) None of the above 6. Security norms for loans to individuals exceeding Rs. 50,000/- and to groups ecxceeding Rs5.00lacs are a) Hypothecation of assets created out of Bank finance. b) Collateral in the form of marketable security, title deed . c) a & b d) None of the above 370


7. Interest charged by the bank on subsidy amount is a) nil b)1.00% c)1.5% d)2.5% 8.Subsidy under SGSY is provided a) 50%in advance. b) 25% in advance c) totally back ended d) 15% in advance 9. For administration of subsidy DRDA will open ------account with principal participating bank branches. a) saving b) fixed deposit c) current d) none of the above 10. Risk fund can be created out of ---% of SGSY funds at district level a) 2 b) 1 c) 5 d) 3 11. What is the minimum lock in period for subsidy. a) 10 years b) 5 years c) 3 years d) none of the above 12. Minimum repayment period for loan under SGSY are a) 3 years b) 5 years c) 10 years d) none of the above 13. Repayment instalments should not be more than ----% of the incremental net income expected from the project a) 40 b) 60 c) 50 d) 30 371


14. For a loan under SGSY scheme with repayment period of 7 years, lock in period for subsidy adjustment is --------years. a) 3 years b) 4 years c) 5 years d) None of the above 15. For a loan under SGSY scheme with repayment period of 5 years, lock in period for subsidy adjustment is --------years. a)5 years b) 4 years c) 3years d) 6years 16. Maximum age of Swarozgari for availing group insurance should be------- at the time of sanction of loan. a) 55 b)45 c) 60 d) 65 17. Group Life Insurance Scheme for SGSY beneficiaries is in operation: a) till the repayment of loan b) For a period of 5 years from the date of commencement of coverage. c) a or b which ever is earlier. d) a or b which ever is later. 18. Banks may provide consumption loans to individual Swarojgaris not exceeding a) Rs. 5,000/b) Rs. 10,000/c) Rs. 2,000/d) None of the above Answers SGSY (i) AGR- XIV 1 c 11 c

2 c 12 b

3 c 13 c

4 b 14 b

5 a 15 c

6 c 16 c

7 a 17 c

8 c 18 c

9 a

10 b

372


AGRI GOLD LOAN AGR- XV Q1. Why our Bank intends to grant loans under Agl. Gold Loans scheme? a) is one of the ways of extending financial assistance to farmers for meeting their agricultural expenses b) most secure loan as per Bank’s experience c) NPA is almost nil / negligible d) all above Q2. What is the objective of granting Agr. Gold Loans? a) To extend hassle free finance to farmers / agriculturists b) increase their liquidity to meet crop production expenses, c) increase their liquidity to meet investment expenses related to agriculture and / or allied agricultural activities. d) all above Q3. Which among the following is not correct regarding sanction of Agri Gold loans a) against Gold ornaments b) Gold bars/coins (Bullion) c) All farmers are eligible for Agri-Gold loan d) Repayment of Gold loan sanctioned should coincide with harvesting and marketing season Q4. Agri Gold loan is sanctioned as a) Demand Loan b) Term loan c) Cash Credit d) Any of the above Q5. Which among the following is correct regarding sanction of Agri Gold loans a)Agri Gold loans’ can be sanctioned to illiterate borrowers. b)Gold loans can be sanctioned for investment purpose c)Ornaments pledged should be in joint custody. d) All of above Q6. Value of gold is declared by____ a) CFO every fortnight b) CCFO every month c) CCO in every quarter d) Circle Managament

373


Q.7 Maximum loan amount that can be sanctioned under Agri Gold Loan is a. Rs 3.00 lacs b. Rs 10. 00 lacs c. Should not be more higher than the advance value of the Gold/ Silver ornaments pledged d. 5 times of Annual Farm Income Q.8 Repayment period stipulated for Agri Gold Loan sanctioned for crop production is a.6 Months b. generally not to exceed 12 Months c.18 Months d.30 Months Q.9 Repayment period stipulated for Agri Gold Loan sanctioned for other than production credit is a.6 Months b.12 Months c.18 Months d.36 Months Q.10 Method prescribed by Bank for testing the purity of gold while sanctioning gold loan is a. Touch Stone method b. Nitric Acid Test c. Specific Gravity Method d. Any one of the above Methods Q.11 Loans under Agricultural gold loans are reckoned as-----a. Direct finance to agriculture b. Indirect finance to agriculture c. As per the activity d. Unsecured loans Q12 Value of gold is declared for ____ carat purity a) 18 b) 22 c) 24 d) 18/22/24 Q13. Who is responsible for ensuring genuineness and purity of gold ornaments ? a) Branch manager b) Cash officer/ Award Cash officer c) Accountant d) Any one 374

STATE BANK LEARNING CENTER, PANCHKULA Q14 Who has to certify the gross and net weight of gold ornaments ? a) Cash officer/ Award Cash officer b) Branch Manager c) Accountant d) Any one Q15What is the minimum margin required under Agriculture Gold loan ? a) 25% b) 20% c) 30% d) No margins needed Q16 Who is the custodian of Gold Ornaments pledged ? a) Cash officer/ Award Cash officer b) Branch Manager c) Accountant d) Branch Manager/Accountant and Cash officer/ Award Cash officer Q17 On repayment of the loan, what steps needs to be taken? a) Ornaments held as security to be returned b) DP Note duly discharged should be returned to the borrower(s) c) Acknowledgement for receipt of ornaments obtained in the Gold Loan Ledger d) All the above Q18 Whether part delivery of Ornaments is permitted? a) No b) Yes, on written request of the borrowers against part payment c) Advance value of the ornaments still in bank’s possession fully cover the outstanding in the account d) Both b and c Q19 What are the instructions regarding delivery to the third party? a) Yes, can be done freely b) Yes, only in exceptional circumstances and on undoubted authority of the borrower c) Yes, only in exceptional circumstances and on undoubted authority of the borrower alonwith letter of authority/undertaking by the borrower absolving the bank from responsibility in the event of any dispute. d) No, it is not permitted Q 20 Whether advances under Agriculture Gold Loan be called up? a) No b) Yes, when the value of the gold is less than the outstandings c) Yes, when the account becomes NPA d) Both b and c

375

STATE BANK LEARNING CENTER, PANCHKULA Q 21 Who is the sanctioning authority of Agr. Gold Loan? a) Cash Officer b) Award Cash Officer c) Branch Manager/ Accountant d) Any one of above Answers AGRI GOLD LOAN AGR- XV

1 D 11 A 20 D

2 d 12 d 21 c

3 b 13 b

4 d 14 a

5 d 15 a

6 d 16 D

7 c

8 b 17 d

9 d 18 d

10 d 19 C

376

STATE BANK LEARNING CENTER, PANCHKULA GENERAL CREDIT CARD (GCC), SHG CREDIT CARD AND SHG GOLD CARD, KRISHAK UTHAAN YOJNA AGR- XVI 1. General Credit Card can be issued by a) Rural Branch b) Rural and Semi Urban Branch c). Rural, Semi Urban and Urban Branch d). Rural, Semi Urban ,Urban and Metro Branch 2. Which among the following is correct in respect of General Credit Card a) To provide hassle-free credit to our customers b) Credit to our customers is based on the assessment of cash flow c) There is no collateral security, purpose or end-use of the credit d) All of the above 3. General Credit Card can be issued to a) Existing customers with branch/ having satisfactorily conducted deposit accounts. b) Customers with loan accounts which are classified as standard assets in our books . c) Both a & b d) All existing customers . 4. Which among the following is not correct in respect of General Credit Card a)The Scheme will be in the nature of revolving credit b)No plastic / electronic card will be issued under the scheme, but in place of a card, a special passbook will be issued to the borrower c)Quantum of the limit will be based on the assessment of income and cash flow of the entire household d)loan limit is Rs.50,000/- . 5. Which among the following is not correct in respect of General Credit Card a). In case of persons cultivating land total credit facility under GCC for an individual shall not exceed 20% of the eligible production loan limit . b). In case of other persons 20% of annual income of the applicant from known sources. c). Maximum loan amount is Rs.25,000/-. d). Penal interest at 1% p.a. be charged to borrowers who default in repaying the loan

377

STATE BANK LEARNING CENTER, PANCHKULA 6. General Credit Card is renewed after a). Three years with half yearly review b) Three years with annual review c ) Five years with half yearly review d) Five years with annual review 7. Which among the following is not correct in respect of General Credit Card a) In case the entire amount is not repaid, a minimum of 20 % of the amount due along with upto date interest debited should at least be repaid b) Enhanced rate of interest @ 2% p.a. be charged to borrower who default in repaying the loan. c) Fifty percent of credit outstanding under GCC up to Rs.25,000/- per account will be treated as indirect agricultural financing. d) It is a secured advance . 8.To be eligible for ‘SHG credit card and SHG gold card’, the SHG should a) develop proper group dynamics and repayment in earlier accounts should be regular. b) reached third level of credit linkage and enjoying a credit limit of Rs.50,000/c) at least 2 of the group members should be literate to operate the account d) All of the above 9.Minimum credit limit under SHG Credit Card is a) Rs.50,000/b) Rs.1,00,000/c) Rs.2,00,000/d) Rs.5,00,000/10.Minimum credit limit under SHG Gold Card is a. Rs.1,00,000/b. Rs.2,00,000/c. Rs.5,00,000/d. Rs.10,00,000/11.Which of the following is incorrect? a. SHG Credit Card will be in the nature of revolving Cash Credit b. SHG Gold Card will be in the nature of Term Loan c. The cards are valid for 3 years d. Consumption credit is not available under the schemes.

378

STATE BANK LEARNING CENTER, PANCHKULA 12. Krishak Uthaan Yojna is aimed at providing short term production and consumption credit to -----------a. Oral tenants/ lessees and small farmers b. Tenant farmers c. Sharecroppers with recorded tenancy rights d. all the above 13. Under Krishak Uthaan Yojna what is the criteria for residential proof? a) should have a permanent residential proof & have been residing at the place for at least past 2 years b) should have a permanent residential proof & have been residing at the place for at least past 12 months c) should have a permanent residential proof & have been residing at the place for the past 18 months d) No such proof is needed 14. What is the upper limit for loan under Krishak Uthaan Yojna? a).Rs 15000/b) Rs 25000/c) Rs 20000/d ) No such upper limit 15. What type of loan facility is given under Krishak Uthaan Yojna? a) Demand loan b) Overdraft c) Term Loan d) Revolving Cash Credit 16. How do we calculate limit under Krishak Uthaan Yojna? a) Land area cultivated and scale of finance applicable . b) Land area cultivated and scale of finance applicable inclusive of consumption needs which is capped at 20% of production limit . c) a plus another 20% of the production limit would be added for purpose of immediate needs of borrowers after harvest of the crop d) Flat Rs. 25000/- irrespective of land area 17. What are the margins under Krishak Uthaan Yojna? a) 5% b) 10% c) 15% d) Nil 18 What is the security taken under Krishak Uthaan Yojna? a) Hypothecation of crops b) Third party guarantee c) Mortgage of property d) Clean loan

379

STATE BANK LEARNING CENTER, PANCHKULA 19 Whether prudential norms are applicable to accounts under this scheme? a) Yes, same as applicable to crop loans b) No, not applicable 20 How to verify the identity of the borrower? a) Documents related to house of the applicant b) Voter’s list/ Identity Card c) Any other document prescribed by the LHO d) Any one of the above

Answers GENERAL CREDIT CARD (GCC), SHG CREDIT CARD AND SHG GOLD CARD, KRISHAK UTHAAN YOJNA AGR- XVI

1 b 11 d

2 d 12 d

3 c 13 a

4 d 14 b

5 d 15 d

6 b 16 c

7 d 17 d

8 d 18 d

9 a 19 a

10 b 20 d

380


BUSINESS CORRESPONDENTS AND BUSINESS FACILITATORS AGR- XVII 1. What is Financial Inclusion? a) Mobilising deposits from rural areas b) Providing loan facilities to rural people c) Extending hassle free savings and loan facilities and other banking services at an affordable cost, to the underprivileged and unbanked population d) All above 2. What is the approximate number of Business Correspondents/ Business Facilitators that our bank is going to create? a) 10,000-12,000 b) 15,000- 20,000 c) 5,000- 7,500 d) 1,000- 2,500 3. At the corporate centre level, the bank has tied up with which of the following to work as our business correspondent? a) India Post b) Drishtee Foundation c) ZERO Microfinance And Savings Support Foundation (Zeromass) d) all above 4. At the corporate centre level, the bank has tied up with which of the following to work as our business facilitator? a) India Post b) Tata c) ITC d) all above 5. Where can Alliances for BC/BF can be struck? a) At the Corporate Centre level b) At circle level c) At module/Regional level d) Both a b& c 6. Corporates like ITC or Reliance, with their internet enabled rural outlets like echoupals/procurement centres, qualify for working as our ------a) BFs b) BCs. c) Both a. & b. d) Neither a. nor b. 381


7. What percentage of assets of the Rural and Semi urban branches is expected to be brought in by BFs and BCs? a) 15% b) 25% c) 30% d) 35% 8. Which type of entities could be ideal alliance partners? a) India Post due to their out reach and sheer numbers b) NGOs based on their coverage c) Section 25 (i.e. Not for profit) companies, such as Zeromass. d) all above 9. What would be the products which would be prescribed for alliances? a) Assets b) Liabilities c) Both assets and liabilities d) There is no fixed list of products. 10. For availing the services of BC/BF a) Their police verification is necessary b) Only references are necessary c) None of the above 11. In case of Zero Mass Alliance, what is the type of arrangement and where all extended? a) This is a Business Correspondent arrangement and currently on at 61 Customer Service Points (CSP) spread over Mizoram, Uttarakhand, Andhra Pradesh and Uttar Pradesh b) This is a Business Facilitator arrangement and currently on at 100 Customer Service Points (CSP) spread over Nothern states c) This is a Business Correspondent arrangement and currently on at all India level d) None of the above 12. What are the main objectives of the alliances? a) Increasing the outreach. b) Greater financial inclusion. c) Ride on the technology which we have pioneered and multiply our customer base many times. d) all above 382


13. Can these alliance partners source large value deposits/loans? a) Yes, with the permission of RBI b) Bulk deposits and very large loans will not be sourced by these entities c) No such restriction d) Instructions are not clear 14. In which segments can the alliance partners source business? a) Agri. b) Per c) SME d) Retail business in all the segments 15. Who will train the operators at the BC/BF customer service points (CSP)outlets? a) BCs to develop their own training arrangements b) Since work is simple no training needed c) Before the launch of the arrangement under pilot, the corporate entre arranges these with the support from the Asst. Gen. Manager for the Region, the Local Head Office, SBLCs, SBIRD. d) SBIRD 16. What kind of training is imparted to these operators? a) About products only b) About handling of machines c) About KYC norms d) The training will cover all the CSP personnel in different products, KYC guidelines, the supporting documents required, POS machine operations and key areas to check for while sourcing business from a customer. 17. What is the procedure for handling deposit account opening forms and loan proposals by BC/BF’s CSPs a) Kept by BC/BF b) Sent to Channel Manager/CMA c) The CSPs will send all forms directly to the Link Branch. d) None of the above 18. Will the Channel Mgr / CMA need to visit the CPC to follow up proposals submitted by the CSPs? a) Not as a matter of course. b) However, looking to the role being akin to that of a Regional Manager as far as the BC/BF outlets are concerned, the Chl. Mgr/CMA is needed to ensure that loan applications are disposed of without delay and the BC/BFs are kept happy and in good humour. c) Just like a Regional Manager, a Channel Mgr has to work to drive business and also control. d) All of the above 383


19. Can the Channel Mgr/CMA visit a customer jointly with the outlets of these alliance partners? a) No b) Yes c) In this process we need, through the mechanism of Chl. Mgr, to put in more than the required/commensurate efforts by way of sensitization, handholding support, making available other enablers like stationery, publicity initially. d) b. & c. 20. Who else should visit the outlets of the alliance partners whether they are BCs or BFs? a) Staff of Link branch b) BM of Link branch c) The AGM & the CM (Rural) of the Region d) all above 21. What is the difference between a BC and BF? a) Difference in areas of operation. b) A Bf does not deal with loans of Link branch c) A BF will only source applications for deposits / loans / cross selling. A BC in addition to the activities of the BF will also carry out small value transactions. d) None of the above 22. How will the branch / CPC know that an application has been sourced by a BC/BF? a) The BC/BF will brand a rubber stamp with their name on the application sourced b) The rubber stamp will also include the code no of the BF/BC c) the Branch will enter the BC/BF code in the Core Banking Menu. d) All of the above 23.

Who will verify the correctness of the commission paid to BF/BC? a) The desk officer . b) The accountant /Manager (Branch Operations) c) The Branch manager d) The Channel Manager / Channel Management Advisor will verify the correctness of the commission and recommend to the Branch Manager / AGM for payment.

384

STATE BANK LEARNING CENTER, PANCHKULA Answers BUSINESS CORRESPONDENTS AND BUSINESS FACILITATORS AGR- XVII

1 c 11 a 21 c

2 a 12 d 22 d

3 d 13 c 23 d

4 c 14 d

5 d 15 c

6 a 16 d

7 b 17 c

8 d 18 d

9 d 19 d

10 a 20 d

385

STATE BANK LEARNING CENTER, PANCHKULA ( SBI TINY) Q 1) What is the eligible loan amount in SBI Tiny SB cum- OD Account ? a) Equal to 4 times monthly average balance ( 15th day of month) months or equal to 4 months net income assessed by link whichever is higher b) Equal to 6 times monthly average balance ( 15th day of month) months or equal to 6 months net income assessed by link whichever is higher c) Equal to 3 times monthly average balance ( 15th day of month) months or equal to 3 months net income assessed by link whichever is higher d) None of these

for preceding 6 branch official, for preceding 6 branch official, for preceding 6 branch official,

Q 2) What is the min. and max. loan amount under SBI Tiny SB cum- OD Account ? a) Rs. 5,000/- and Rs. 25,000/b) Rs. 1000/- and Rs. 25,000/c) Rs. 2000/- and Rs. 25,000/d) None of these Q 3) What is period of repayment under SBI Tiny SB cum- OD Account ? a) b) c) d)

Max. in 12 equated monthly instalments Max. in 24 equated monthly instalments Max. in 36 equated monthly instalments None of these

Q 4) What is the rate of intt. applicable to SBI Tiny SB cum- OD Account ? a) b) c) d)

Interst rate is equal to 2% above SBAR p.a. with monthly rests Interst rate is equal to 1% above SBAR p.a. with monthly rests Interst rate is equal to SBAR p.a. with monthly rests. None of these

Q 5) What is not true about SBI Tiny SB cum- OD Account ? a) Loan will be sanctioned to customers who have not availed KCC limit from any branch b) A running overdraft account c) Auto-reduction of Drawing Power every month d) Loan to be sanctioned to individual customers holding SBI Tiny card for last three months KEY 1 2 3 4 5 A B B A d 386

STATE BANK LEARNING CENTER, PANCHKULA Cash Department 1. Entries in Vault Register are to be made by: a) b) c) d) 2.

Currency Transfer debit means------------. a) b) c) d)

3.

Amount debited to RBI on account of remittance Amount debited to LHO on account of remittance Amount deposited into the chest is more than the amount withdrawn Amount withdrawn from the chest is more than the amount deposited

SWO preparing the note packets remains responsible for both the quality and quantity of the notes in the packets prepared by him for denominations of Rs.1/- to Rs. ------------------: a) c)

4.

Cash Officer Joint Custodian of Cash other than Cash Officer Deputy Head Cashier Any Cashier

10 100

b) d)

50 500

After the note packets of Rs.500/- & Rs.1000/- are recounted and signed by the Cash Officer, the SWO who prepared the note packets would be responsible for --------of notes in the packet, a) Quality only c) Both, Quality & Quantity

b) d)

Quantity only None of the above

5. Security thread is found in all genuine notes of: a) All denominations c) Rs. 5/-and above 6.

b) Rs. 2/- and above d) Rs.10/-and above

The Cash officer’s hand balance is verified by the Accountant/Joint Custodian completely at which of the following intervals-----a) c)

Daily Every Friday

b) d)

Not Verified Weekly

7. Currency Transfer should be advised to:a) Currency Officer c) Link Branch

b) Treasury Officer d) None of the above

387


8. Transactions in the Currency Chest should always be in multiples of: a) b) c) d)

Rs. 500/- with a minimum of Rs. 1000/Rs 5000/- with a minimum of Rs. 10000/Rs.50,000/- with a minimum of Rs. 1,00,000/None of the above

9. While paying an instrument the paying cashier/SWO cancels the signature of: a) Drawer of the instrument c) Payee/person receiving payment

b) d)

Passing Officer None of the above

10. In whose custody, Transit Voucher books are retained overnight? a) Branch Manager c) Respective Passing Officials

b) d)

Joint Custodian of cash Accountant

11. How many Guards, other than the person accompanying the cash, will escort the remittance of Rs. 85. 00 lacs. a) b) c) d)

One armed Guard Two armed Guards It will be accompanied by Police Escort No escort is required

12. The vault register must always remain in the: a) c)

Branch Manager Custody Branch Strong Room

b) d)

Cash Officers Custody None of the above

13. RBI has prohibited stapling of currency notes by a directive issued under: a) b) c) d)

Section 35A of Banking Regulation Act Section 35A of RBI Act Section 35A of NI Act Section 35A of Indian Currency Act

14. Bills for reimbursement of expenditure incurred on chest remittances are to be lodged with a) RBI through FSLO c) GAD Mumbai

b) RBI directly d) No reimbursement is claimed

388

STATE BANK LEARNING CENTER, PANCHKULA 15. Small Coin Depot comprises of coins of: -----a) 50 paise and less c) Rs1/- and less

b) up to Rs 2/d) up to Rs 5/-

16. In the event of wrong/delayed reporting of currency chest figures, Bank has to pay penalty @ -----a) Saving Bank Interest rate c) Applicable rate for time deposits

b) d)

Bank Rate plus 2% Bank Rate

17. Inter-loaning of cash among Cashiers/Cash officer is recorded in __________. a) Vault Register c) Cash Receipt/Delivery Book

b) d)

Currency Chest Book On Plain paper.

18. The numerals are printed in Optically Variable Ink on the currency notes in the denomination of: a) Rs. 1,000/-only c) Rs. 100/- to Rs.1000/-

b) Rs. 50/- and Rs.100/d) Rs. 500/- & Rs.1000/-

19. Who decides on the quantity of coins to be minted? a) RBI c) Ministry of Finance

b) Govt. of India d) Ministry of Commerce

20. A remittance from one Currency Chest to a Currency Chest of another bank is affected----------a) By debit to Link branch c) No entry need be passed

b) By debit to Reserve Bank of India d) None of these.

21. When excess cash is found at the end of the day, it is to be----------a) Paid to the concerned cashier c) credited to charges account

b) credited to Sundry Deposit account d) None of these.

22. Which branches are to be covered under revised procedure? a) All Hand balance CBS branches c) All CBS branches

b) All Currency chest branches d) All branches

389

STATE BANK LEARNING CENTER, PANCHKULA 23. What are the major benefits that will accrue to the branches after introduction of redesigned in house cash handling process? a) There will be no delay in starting customer transactions at the beginning of the day b) The process will reduce the time spent by the Cash Officer/Cashier-in- Charge in handing over and receiving cash at the beginning/close of day. c) The process will reduce the time spent by the SWO/ Assistant (Cash) in handing over and receiving cash at the beginning/close of day. d) all the above 24. What is the overnight retention limit permitted to the SWO/Asstt. Cash ? a) Rs. 25,000 c) Rs 1 lac

b) Rs.50,000 d) Rs 75,000

25. What kind of cash box is provided to the SWO/Asstt. Cash for overnight cash retention? a) Box c) VIP bag is provided

b) Aluminum box size14 inch x 11 inch x 4 inches d) any kind of arrangement can be made

26. Who is the custodian of cash box overnight and what are their responsibilities? a) joint custody of CO/CIC and ager b) CO/CIC c) Accountant/Service Man d) Cash Box shall remain overnight in joint custody of CO/CIC and Accountant/Service Manager, the cash in the drawer shall continue to remain in the single custody of SWO/ Assistant(Cash) as the key of Cash Box shall remain with the SWO/ Assistant(Cash). 27. What is the cash verification (SWO/Asstt. Cash) system available under the new procedure? a) Not required b) verified once in a month c) system generate a random list of Cash Boxes required to be verified daily either at the beginning/end of the day d) system shall generate a random list of Cash Boxes required to be verified daily either at the beginning/end of the day in such a way so as to ensure verification of cash of all SWOs/Cashiers at least once every week

390


Key to Assignment –(Cash Department) Q. Ans. Q. Ans. Q. Ans.

1 b 11 b 21 b

2 c 12 c 22 a

3 c 13 a 23 d

4 a 14 a 24 c

5 c 15 a 25 b

6 d 16 b 26 d

7 c 17 c 27 d

8 c 18 d

9 a 19 b

10 c 20 c

391


PPF SCHEME 1

How many accounts an individual can, open in name of his/her minor children, in addition to his/her own PPF account? a) 1 c) 3

2

b) 2 d) One each in the name of minor child

Minimum amount required to be deposited in a PPF account during a year is Rs. _____ a) 50 c) 500

3

b) d)

What is the maximum amount that can be deposited in a PPF account during a year? a) Rs. 60000 c) Rs. 80000

4

b) d)

b) d)

12 15

2 5

An irregular PPF account due to non deposit of minimum Rs. 500/- in a year, can be regularized by paying a penalty fee of Rs. ____per year for each year of default with cumulative effect a) 10 c) 30

7

Rs. 70000 Rs. 100000

How many withdrawals in a PPF account can be made in a year? a) 1 c) 3

6

b) d)

How many number of deposits in a PPF account can be made in a year? a) 10 c) 14

5

100 1000

b) d)

20 50

Interest on PPF account is paid on the minimum balance standing to the credit of the account holder from ____of the month to last day of the month a) c)

1st 7th

b) d)

5th 10th

392


The balance in PPF account of Mr. S.K. Sharma with State Bank of India, Panchkula is Rs. 1,00,000 as on 01-04-2009. Mr. Sharma deposited a cheque for Rs. 30,000 on 05-04-2009 drawn on ICICI Bank, Panchkula which was paid in clearing on 07-04-2009. Mr. Sharma will get interest for the month of April 2009 on Rs. _____ a) 1,30,000 c) 1,15,000

9

10 20

b) d)

2 No Limit

b) d)

Ex-Minor (Now Major) Trust

A PPF account of an alive person cannot be closed before expiry of _____years after the year in which initial deposit was made a) 5 c) 15

14

b) d)

If a minor attains the majority before the expiry of the term for which PPF account was opened, who will operate the account? a) Natural Guardian c) Court appointee

13

Two No limit

For how many times, a PPF account can be extended after the completion of maturity for a further block of 5 years? a) 1 c) 3

12

b) d)

For how many years, a PPF account can further be extended at a time? a) 5 c) 15

11

1,00,000 None of above

A depositor of PPF account can nominate ____persons a) One c) Three

10

b) d)

b) d)

10 None of above

A request for pre-mature closure of a PPF account after completion of 5 year from the year in which the initial deposit was made, will be forwarded to a) AGM c) Deputy Commissioner

b) d)

DGM Ministry of Finance, GOI

393


In case of death of an account holder of PPF, where there is no nomination, payment up to which amount can be made to the legal heirs without obtaining succession certification a) Rs. 50000 c) Rs. 200000

16

5 7

b) d)

2nd preceding

If the PPF account is continued after maturity for a further block of 5 years, how many withdrawals in a year are allowed? a) 1 c) 3

19

b) d)

The amount of withdrawal of PPF will be limited to 50% of the balance at the credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the ____year, whichever is lower a) Ist c) 3rd

18

Rs. 100000 No limit

First withdrawal in a PPF account can be made after the expiry of ____years from the end of the year in which the initial subscription was made a) 4 c) 6

17

b) d)

b) d)

2 5

In case of extended PPF accounts, withdrawal shall not exceed ___% of the balance lying in the account at the time of maturity (prior to extended period) a) 50 c) 70

b) d)

60 80

20

First loan in a PPF account can be granted in the _____financial year from the financial year in which the account was opened b) 2nd a) 1st c) 3rd d) 5th

21

What is the limit fixed for subscribing in a PPF account where default along with penalty is required to be deposited ? a) Should not exceed 70000/b) 70000/- plus penalty c) 70000/- plus default and penalty d) 70000/- plus default

22

Which of the following can open account under PPF scheme? a) NRI b) HUF c) Individuals d) a &c above 394


KEY TO ASSIGNMENT PPF SCHEME 1 6 11 16 21

d d d b a

2 7 12 17 22

c b b d c

3 8 13 18

b a a a

4 9 14 19

b d d b

5 10 15 20

a a b c

395


PPF SCHEME -II 1

What is the present rate of interest payable on PPF deposits? a) 7% p.a. b) 8% p.a. c) 9% p.a. d) 10% p.a.

2

When interest is applied to PPF accounts? a) 31st December c) 30th June

3

No loan on PPF account can be granted after the expiry of ____years from the end of the year in which the initial subscription was made a) Three c) Five

4

b) d)

50 75

b) d)

Twice No limit

Loan granted against PPF deposit, will be repaid within a maximum of ____monthly installments a) 12 c) 36

7

Four Six

How many times, loan can be granted against PPF deposit in a year? a) Once c) Thrice

6

b) d)

The amount of loan against PPF deposit will be restricted to ____% of the amount credit at the end of 2nd year immediately preceding the year in which the loan is being granted a) 25 c) 60

5

d)

b) 31st March th 30 September

b) d)

24 48

After the principal amount of PPF loan is fully repaid, the subscriber shall pay interest @ 1% p.a. in _____monthly installments a) 1 c) 3

b) d)

2 5

396


8

If principal is not repaid within 36 monthly installments, interest shall be charged @ _____p.a. a) 2 c) 6

9

4 8

PPF account can be opened in ____names a) Individual c) Both (a) & (b)

10

b) d)

b)

Joint with spouse d) None of above

Mr. Anil Pant has deposited Rs. 80,000/- in his PPF account on 30-03-2009. How this case will be dealt with? a) Rs. 10,000 will be returned back to Mr. Pant immediately and no interest on Rs. 10,000 will be paid b) Rs. 10,000 will be returned back to Mr. Pant immediately but interest on Rs. 10,000 will be paid c) Interest on full amount of Rs. 80,000/ will be paid d) None of above

11

Ms. Pooja Arora is maintaining a PPF account. Now she is married and her surname has been changed to Mutreja. How we shall deal with this situation? a) Account will be continued as it is, no need for any change b) Her surname will be changed in the records after taking documentary evidence of her marriage and she will operate her account accordingly c) Joint account will be opened with her husband d) None of above

12

13

Which amongst the followings cannot open new PPF accounts as per the extant instructions? a) HUF b) NRI c) Individuals d) Both a & b Govt. of India has instructed all the authorized branches dealing with PPF business to pay commission to agents of PPF at source w.e.f. _____ a) 01-04-2004 c) 01-06-2004

b) d)

01-05-2004 01-07-2004

397


14

PPF commission to agents will be paid @ ___% of amount deposited a) 1 c) 3

15

b) d)

Branches paying PPF commission to agents have to deduct _____from the amount of commission a) TDS c) Sales Tax

16

b) d)

Service Tax Both (a) & (b)

PPF Commission will not be paid on the amount pertaining to ______ a) Loan including interest on loan c) Both (a) & (b)

17

2 5

b)

Revival Fee d) None of above

PPF commission to agents will be paid through ______ a) Cash c) Credit to his/her account

b) d)

Account payee banker cheque either (b) or (c)

KEY TO ASSIGNMENT PPF SCHEME -II 1 6 11 16

b c b c

2 7 12 17

b b d d

3 8 13

c c c

4 9 14

a a a

5 10 15

a a d

398

STATE BANK LEARNING CENTER, PANCHKULA GOVERNMENT BUSINESS -I 1

A govt. bill passed by Treasury Officer is valid for _____days including the date of passing a) 7 c) 15

2

4

TO Pass Book Courier

b) d)

VDMS SGLO II

____is a statement sent by Treasury Office to the branch after due verification b) d)

VDMS SGLO II

Income Tax Refund Orders (ITRO)/ Cheques are valid for _____month from the date of issue a) One c) Three

8

b) d)

At the end of month, summary of govt. transactions is sent to Treasury Office on ________format for verification

a) DMS c) SGLO I 7

08-04-09 31-03-09

a) FSLO (LHO) b) ZO c) GAD, Mumbai d) RBI Daily summary along with related vouchers and scrolls are sent to Treasury Office by _______

a) DMS c) SGLO I 6

b) d)

Daily reporting of State Govt. Transactions by fastest mode is made by the branches through SGLO – I to ________

a) Messenger book c) Regd. Post 5

10 30

A govt. bill passed by Treasury Officer on 29-03-2009 is valid up to _______ a) 07-04-09 c) 10-04-09

3

b) d)

b) d)

Two Six

Paying branch should obtain ___________by the payee on Income Tax Refund Order (ITRO) a) Discharge on revenue stamp c) No need for any discharge

d)

b) Simple discharge None of above 399


9

10

Paying Branch should obtain ______from the payee on Income Tax Refund Cheque a) Discharge on revenue stamp b) Simple discharge c) No need for any discharge d) None of above Advices of Income Tax Refund Orders (ITROs)/Cheques exceeding Rs. ______are sent by Income Tax Office to the paying branches a) 99 c) 9999

b) d)

999 99999

11

The present rate of commission on handling govt. business by the branches is Rs. _____ per Receipt a) 20 b) 25 c) 50 d) 45

12

The present rate of commission on handling govt. business by the branches is Rs. _____ per pension payment a) 45 b) 60 c) 50 d) 100

13

The present rate of commission on handling govt. business by the branches is Rs. _____ per payment (other than pension) a) 60 b) 25 c) none of above d) 45

14

Focal Point branch transfers ____% of commission to receiving branches who have handled govt. business a) 25 c) 75

b) d)

50 100

15

Under Reserve Bank of India Remittance Facility Scheme (RBIRFS), the branches will be faxing the schedule (RBR-11) and paid instruments to GAD Belapur, if the amount of draft paid is Rs. ____lac or more on a single day a) 25 b) 50 c) 75 d) 100

16

On Line Tax Accounting System (OLTAS) has come into effect from _______ a) June 2004 c) August 2004

b) d)

July 2004 September 2004

400


How many number of forms for depositing the tax have been introduced under OLTAS? a) 1 c) 3

18

200,300,400 280,281,282

b) d)

Two Four

Which amongst the following type of challan forms for depositing the tax by the depositor under OLTAS, will not be accepted by the bank? a) B/W Xerox copy c) Old challan forms

21

b) d)

How many copies of relative challan, a depositor has to submit for depositing the tax under OLTAS? a) One c) Three

20

2 4

Which forms amongst the followings, have been introduced for depositing the tax under OLTAS? a) 100, 200,300 c) 180,181,182

19

b) d)

b) d)

Downloaded from internet None of above

Which type of acknowledgement will be given by the bank to a person who is depositing tax under OLTAS with an instrument drawn on another bank locally a) b) c) d)

Receipt will be issued as in the other case Receipt will be issued with “Subject to instrument being paid” stamp Paper Token to be issued No receipt should be given

22. The type of instruments covered under RBIRFS are …………. a)Drafts drawn by RBI payable at SBI b) Drafts drawn by RBI payable at RBI c) Drafts drawn by TO/STO/ATO payable at SBI d)a & c above 23. A draft drawn payable on the branch is paid by debit to ……………… a) Sys. Suspense A/c c) Govt. General Account e) RBI drafts paid account

b)DDP (Cheques ) A/c d)GAD

401

STATE BANK LEARNING CENTER, PANCHKULA 24. In case of drafts paid by the branch under RBIRFS the branch need to prepare ……….. a) GAD – 11 (9595) c) Sch. 7 only d) a & B above

b) RBR- 11 d) all of the above

25. To avoid opportunity loss of interest branches have to ensure dispatch of the below mentioned papers on the very next day of the transaction irrespective of the amount involved – by the fastest mode to GAD………………. a) b) c) d)

GAD-11 & RBR –11 along with Original paid draft GAD-11 only RBR-11 & draft should be sent to RBI Draft has to be retained at the branch

26. If the amount of RBI encashment exceeds Rs.25 lacs under noted papers are to be faxed to GAD. a) RBR-11 GAD-11 & RBR –11 along with Original paid draft b) GAD-11 only c) RBR-11 & original draft paid e) Only Draft has to be retained at the branch 27. In case original draft paid is lost in transit than a certificate in lieu of lost paid voucher is prepared on format………….. a) RBR – 12 b) RBR- 18 c) RBR – 20 d) Photocopy of the draft duly attested may be sent

1 6 11 16 21 26

b b d a c c

2 7 12 17 22 27

KEY GOVERNMENT BUSINESS -I d 3 a 4 b c 8 b 9 c b 13 c 14 c c 18 d 19 a d 23 d 24 d c

5 10 15 20 25

a c a c a

402

STATE BANK LEARNING CENTER, PANCHKULA GOVERNMENT BUSINESS -II 1

CIN under OLTAS stands for ______ a) b) c) d)

2

Commercial & Institutional Negotiator Certified Insurer Negotiator Challan Identification Negotiator Challan Identification Number

CIN contains a 7-digit BSR code which pertains to ______ a) Bank Code c) Zonal Office Code

3

b) d)

Mr. Suresh Datt has deposited Rs. 10,000/- as income-tax on 25-04-2009 at SBI Panchkula. In which format, the date will be mentioned on the CIN? a) 25th April 2009 c) 250409

4

Submit original copy of challans Submit zerox copy of challan Mention the CIN no. only None of above

Mr. K. P. Rai visited SBI Panchkula on 01-01-2009. He does not have PAN No but intends to deposit the income-tax. How this situation will be dealt with? a) b) c) d)

6

b) 25-04-2009 d) 042509

While filing income tax return under OLTAS, a customer has to ______ a) b) c) d)

5

Mr. Rai will be asked to first obtain PAN In the respective column, write “Applied for” and accept challan Refer the matter to Controllers Refer the matter to Income Tax Deptt

Under OLTAS, the collecting branch will be sending the data through electronic mode to: a) LHO c) Nodal Branch

7

Circle Code Branch Code

b)

ZO d)

Zonal Accounts Office

Nodal branch under OLTAS, will be transmitting the data received from the collecting branches to _______ a) LHO

b)

RBI

c)

ZO

d)

GAD, Mumbai 403


8

Under OLTAS, GAD Mumbai will settle the funds with _______ a) RBI Mumbai c) RBI CAS, Nagpur

9

b) d)

RBI New Delhi RBI Chennai

The maximum period for crediting the tax collections under OLTAS to Govt. Account at CAS, Nagpur is T + ____days (Excluding Holidays) a) 3

10

11

b)

7

c)

d)

10

If govt. account is not credited within the stipulated period under OLTAS, interest @ Bank Rate + ______% will be charged a) 1 b) 2 c) 3 d) 4 A new challan form introduced by CBEC-EASIEST FOR DEPOSIT OF Central Excise &

Service Tax under EASIEST is ………….

a) GEST –7 c) EASIEST-7 12

9

b) GAR-7 d) GESTC-7

For conducting govt. business, the relationship of RBI with SBI is that of _____and ______ a) Licensor, Licensee c) Bailor, Bailee

b) d)

Principal, Agent None of above

13 For credit of pension to the account of a pensioner, the account may be maintained in: a) Individual name c) Joint name with spouse only

b)

Joint names with any person d) Either (a) or (c) only.

14 Life Certificate from pensioner is obtained every year in the month of ______ a) May c) November 15

b) d)

June December

Focal Point branches will be sending _______at monthly intervals to receiving branches, containing a summary of govt. transactions handled by receiving branches a) GAD 2 c) GAD 5

b) d)

GAD 3 GAD 12 404


16

GAD 13 refers to ______ a) Daily transactions c) Error Adjustment

17

b) d)

Monthly transactions None of above

b) d)

6 12

RBI drafts are valid for ______months a) 3 c) 9

18.

Special e-Tax campaign has been launched by the bank w.e.f. ………… a) 1/102007 b) 1/11/07 c) 1/09/07 d)none of the above

19

.EASIEST stands for………………….. a) b) c) d)

EASY ACCOUNTING SYSTEM IN EXCISE & SERVICE TAX EASY ACCOUNTING SYSTEM IN EXCISE & SALES TAX ELECTRONIC ACCOUNTING SYSTEM IN EXCISE & SERVICE TAX ELECTRONIC ACCOUNTING SYSTEM FOR INCOME, EXCISE & SALES TAX

KEY GOVERNMENT BUSINESS -II 1 6 11 16

d c b c

2 7 12 17

d d b b

3 8 13 18

c c d a

4 9 14 19

c a c c

5 10 15

a b b

405

STATE BANK LEARNING CENTER, PANCHKULA GOVERNMENT BUSINESS -III 1 In respect of pension payment to defense personnel who can issue a duplicate pension Payment Certificate in the event of original certificate being lost, stolen or destroyed? a) Central Govt. b) Ministry of Defense c) Pension Disbursing Authority c) Can not be issued 2 What are the charges / renewal fee if the loss /damage to above certificate is due to sheer negligence/careless ness of the pensioner? a) Rs.100/c) Rs. 50

b) Re 1 d) No charges

3 In the CPPC ( Centralized Pension Processing Centers) concept the commission between Dealing/Home branch and Focal Point branch/ CPPC is distributed ------a) 75%-25% b) 100% by CPPC c) 100% by Dealing/Home branch d) 25%-75% 4 Facility of Drop Box is not available to which of the following? a) Local Cheques c) Direct Tax Challans

b) Out station cheques d) Inter Bank cheques

5 The release of first pension to NRI pensioner/family pensioner, personal identification at the time of drawls of first payment is----- a) b) c) d)

Not necessary Mandatory Certificate from concerned Embassy Identification can be done by existing A/c holder

6 Every branch will be paid Rs------- for each pension account opened by debit to LHO Charges A/c a) 500 c) 250

b) 100 d) No such provision

7 Branches can lodge a claim each time a block of -------- new accounts is opened irrespective of the length of the period in which these accounts are opened. a) 5 b) 10 c) 25 d) 20 406


8 How the amount so received is to be utilized? a) Given in cash to the staff b) Get together for all the Branch staff c) credited to commission a/c d) benefit is passed over to pensioners 9 If a branch opens ------pension accounts in a calendar month it will get a bonus of Rs-------for that month. a) 10/ 500 c) 50/ 2500

b) 5/500 d) No such provision

10 If a single employee/ officer mobilize ------pension accounts in one calendar month, he/ she will be given an individual prize of Rs.--------(in the form of gift) a) 10/ 1000 c) 25/ 2500

b) 5/ 500 d) 15/2000

11 Whether credit of pension to a joint account is permitted? a) No b) Yes c) Yes, A/c with spouse only d) Joint a/c with any one 12 Various products of Small Savings Schemes are available to------a) Individuals c) Trusts/PFs etc.

b) HUFs d) All

13 Permissible period for remittances of Govt. revenues is-------working days in case of local transactions. a) T+ 3 c) 7

b) T+5 d) 3

14 Permissible period for remittances of Govt. revenues is-------working days in case of out station transactions. a) T+ 3 c) 7

b) T+5 d) 3

15 Interest charged for delayed period remittances is known as a) Interest c) Misc. income

b) Commission d) Delayed period interest

407


It has been decided by Central Pension Accounting Office, Government of India , Ministry of Finance to issue ……………..to the Central Govt. pensioners at the commencement of pension and thereafter, whenever there is a change in the quantum of pension. a) Pass book b) Monthly statements slip c) Pension Slips d) Certificate KEY GOVERNMENT BUSINESS -III 1 6 11 16

c b c c

2 7 12

b c a

3 8 13

a b a

4 9 14

c c b

5 10 15

b c d

408

STATE BANK LEARNING CENTER, PANCHKULA GOVERNMENT BUSINESS RBI REMITTANCE FACILITY SCHEME-2007 1.

RBI REMITTANCE FACILITY SCHEME-2007 has been launched w.e.f. a) 1/04/07 b) 01/01/07

2.

b) 01/07/07 d)01/10/07

The type of instruments covered under RBIRFS are …………. a)Drafts drawn by RBI payable at SBI b) Drafts drawn by RBI payable at RBI c) Drafts drawn by TO/STO/ATO payable at SBI d)a & c above

3.

A draft drawn by RBI & payable on the branch is paid by debit to ……………… a) Sys. Suspense A/c c) Govt. General Account e) RBI drafts paid account

4.

As per RBIRFS- 2007 ( Revised) our bank will not submit the reimbursement claim for instruments issued by RBI Offices and encashed by our branches . Instead, RBI will credit on a…………….the consolidated amount of drafts issued by them, to our account opened at various DADs of RBI. a) Monthly basis c) Weekly basis

5.

b) Fortnightly basis d) Day-to-day basis

In case of instruments issued by Agencies other than RBI paid and paid by the SBI branches the branches need to prepare.. a) GAD – 11 (9595) c) Sch. 7 only d) a & B above e) all of the above

6.

b) DDP (Cheques ) A/c d) GAD f) As per revised procedure , no reimbursement claim will be submitted by our bank.

b) RBR- 11

The details of the drafts issued by RBI will be sent to the respective nodal branch by e-Mail containing DD number , date place and code number of our branch on which draft has been issued, amount & name of the beneficiary by……. a) RBI c) GBU

b) GAD d)LHO 409


7.

The…………….. will communicate the details of the drafts issued by RBI to the drawee branches on receipt of the relative funds from RBI . a) Main Branch which will function as a NODAL branch b) RBI c) GAD d)None of the above

8.

On receipt of relative funds these will be credited at the NODAL branch to an account styled as ………………… a)RBI Drafts Paid Account c) RBI Draft Funds Received Account

9.

b) RBI Drafts Account d) RBI Finds Settlement Account

The drawee branch will pay the draft issued by RBI ………….. a) by DDP on the Nodal branch c) by debit to GAD

b) through BCGA to Nodal branch d)none of the above

10.

The work relating to sending of advices to respective branches will be done by …………… a) RBI offices b) SBI branches c) No advice will be sent d) Infromation will be available on SBI Times

11.

SBI main branches where the Fund Settlement Account is maintained ,they will submit daily report of receipt and payments regarding RBI drafts to ... a)FSLO c)LHO

12.

Besides daily report of receipt and payments regarding RBI drafts , SBI main branches will submit a ………statement to GAD Navi Mumbai for statistical purpose. a) Monthly c) Fortnightly

13.

b)GAD d)GBU

b) Quarterly d) Yearly

For cancellation of drafts issued by RBI offices…………. a) Amount will be refunded by nodal Branches, as funds have already been received b) The issuing RBI office would refund the amount to applicant on presentation of discharged instrument c)RBI drafts can not be cancelled d)None of the above 410


14.

In case of drafts issued by our branches the branches will credit GAD through …….. and forward RBR-7 to ………. a) RBI Drafts a/c , GAD c) Govt .Gen. Account, Nodal Branch

15.

b) BCGA , GAD d) Nodal Branch , GAD

If the amount of RBI encashment exceeds Rs.25 lacs under noted papers are to be faxed to GAD. a)RBR-11 GAD-11 & RBR –11 along with Original paid draft b) GAD-11 only c) RBR-11 & original draft paid d)Only Draft has to be retained at the branch

16.

In case original draft paid is lost in transit than a certificate in lieu of lost paid voucher is prepared on format………….. a) RBR – 12 c) RBR – 20

b) RBR- 18 d) Photocopy of the draft duly attested may be sent

KEY RBI REMITTANCE FACILITY SCHEME-2007 1 6 11 16

b a a c

2 7 12

d a a

3 8 13

f d b

4 9 14

d b b

5 10 15

d b c

411


GENERAL AWARENESS - (COMPUTERS-1) 1

The computer based package introduced for Electronic NOSTRO Reconciliation is a) c)

2

b) d)

ELRECON VIRAT

Our Bank’s private communication system is called a) c)

3

NOSTROM VIHAR

SBICOM SBISYS

b) d)

SBINET None of the above

E-TAX facility being provided to the taxpayers to make income tax payments through internet using net banking facility can be used for paying a) Corporation Tax, Income Tax and Wealth tax b) Making payment of tax deducted at source c) For making payment of other taxes like interest tax, gift tax etc. d) All of the above

4

SBI launched Internet Banking on a) 15th January, 2002 c) 1st Aug 2000

b) d)

15th November, 2002 15th January 2001

5

Central Data Centre for Core Banking Operations situated at a) Kolkata b) Belapur c) Nagpur d) Pune

6

What is the software used for Telebanking in SBI a) CROFT b) CRAFT c) KRAFT d) KROFT

7

Which type of credit facility is covered under CGFTS? a) c)

8

Fund based Both (a) & (b)

b) d)

Non-fund based None of above

b) d)

INFOSYS TCS

SFMS software is developed by a) c)

WIPRO SATYAM INFOWAY

412


Which agency certifies security of our Internet banking site ? a) c)

10

d)

b) ICRA None of the above

SBI’s Internet banking site is maintained by a) b)

11

CRISIL Verisign

SIFY TCS

b) d)

Infosys Wipro

Internet Banking facilitates a) Customer can see 2 different accounts in 2 different branches in a single server b) Request for issue of Bank draft c) Booking of railway tickets / pay utility bills d) All of the above

12

VOIP stands for a) c)

13

14

Voice over Internet protocol Voice over Internet phone

b) d)

Voice on Internet protocol Voice on Internet phone

Wireless Application Protocol Wind and Power

WAP stands for a)

Water available point

b)

c)

Wireless Access Point

d)

What is “Convergence” a) b) c) d)

Bringing together information, Communication and Entertainment Arrangement of loans from different banks for a borrower Conversion of foreign currency into domestic currency None of the above

15 GLIF entries can arise due to a) c) 15

Connectivity problems Both a or b

b) System problems d) None of the above

General facilities provided by an ATM are a) c)

Cash withdrawal Transfer of fund from one Account to another account

b) d)

Cash deposit All of the above

413


16

Which was the first, most popular e-based bookshop in the world a) c)

17

yahoo.com ebook.com

Speedily delivery of drafts Fast cash at ATM

b)SBI Funds Available at Shortest Time d) None of the above

What is EIS a) c)

19

amazon.com None of the baove

What is SBI-FAST a) c)

18

b) d)

Extra information from software system b) Executive Information System d)

External information None of the above

What is INFINET a)

Information on Internet

b)

c)

Internal information network

d)

Indian Financial network, set up by RBI None of the above

KEY TO GENERAL AWARENESS – COMPUTERS-1 Q. Ans. Q. Ans.

1 b 11 d

2 b 12 a

3 d 13 b

4 c 14 a

5 b 15 c

6 b 16 d

7 b 17 b

8 d 18 b

9 c 19 c

10 a 20 b

414


GENERAL AWARENESS - (COMPUTERS - 2) 1

Name the two organizations with whom SBI has tie up for co-brand SBI Smart cards a) Indian Oil Corporation & Indian Air Force c) No such tie up.

2

b) Indian Airlines and Air India d) None of these

“SPEED” software developed by SBI refers to a) ATM b) Software for “Submission of Proposals for ECCB Decisions” c) Software for Telebanking d) None of the above

3

4

UPS stand for a)

Uninterrupted Power supply

b)

c)

Uninterrupted Power system

d)

Icon stands for a) c)

5

c)

b) d)

Internal console none of the above

TCS

b) MIS Deptt ,Corporate Centre, Mumbai IT Deptt ,Corporate centre, Mumbai d) None of the above

“IT FORUM” is published by a) c)

7

Inter connected Image of console

DOSCIS software is developed by a)

6

Uniform power system none of these

Staff College , Hyderabad SBIICM ,Hyderabad

b) d)

SBA, Gurgaon None of the above

b) d)

First pageof the website None of the above

What is Home Page a) c)

First page of the book Last page of the website

415


What is POP a) c)

9

Popular Punjabi song Postal office protocol

b) d)

Post office protocol None of the above

What is RAS a) Name of the soft drink from RASNA b) Remote Access sever , to make non networked branches as part of communication revolution within SBI c) Real access software d) None of the above

10

11

Expand MICR a)

Marginal ink Character Recognition

c)

Magnetic ink Character record

What does ROM stand for a) c)

12

Read only memory None of the above

Industrial Development and Research in Banking Technology Institute for Development and Research in Banking Technology Institute for Rural Development in Banking Technology None of the above

9th July 2000 1st January 2000

b) d)

9th June 2000 No such Act

Name the application that helps us to make presentations? a) c)

15

b) d)

Information Technology Act 2000 was passed on a) c)

14

Read on memory Read out memory

What does IDRBT stand for a) b) c) d)

13

b) Magnetic ink Character Recognition d) None of the above

Word Power point

b) d)

Excel Access

b) d)

Main Memory All of the above

CPU consist of a) c)

ALU Control Unit

416


16

What is the expansion of LAN a) c)

17

18

Locally Arranged Network Location Adjusted Network

b)

Local Area Network d) None of the above

National Technology Day is celebrated on a) 11th May b) th c) 11 June d)

Ist July 11th July

Under the Fast Cash option , cash can be withdrawn in fixed amounts of ------from the State Bank ATMs a) Rs. 1000/- , Rs. 2000/b) Rs. 5000/- , Rs. 10,000/-. c) Rs.1000/-,, Rs. 2000/-, Rs3000/- or Rs. 5000/d) None of the above

19

Which city is known as “Silicon valley of India” a) c)

20

Hyderabad Bangalore

b) d)

Chandigarh None of the above

What is the expansion of WAN a) c)

Whole Area Network Wide Access Network

b) d)

Wide Area Network None of the above

KEY TO GENERAL AWARENESS – COMPUTERS – 2 Q. Ans. Q. Ans.

1 A 11 B

2 B 12 B

3 A 13 B

4 C 14 C

5 C 15 D

6 C 16 B

7 B 17 A

8 b 18 C

9 B 19 C

10 B 20 B

417


GENERAL AWARENESS - (COMPUTERS -3) 1

When your ATM-cum-Debit card is lost or misplaced what immediate steps would you take ? a) Contact Toll free help line, inform loss of card and make request to HOT/Block the card and stop the operations of the card. b) Inform immediately the card issuing branch telephonically about the loss of card followed by written request to make the card Hotlisted /blocked c) Both a & b. d ) None of the above

2

What do mean by the term 'Smart Gold' ? a) b) c) d)

3

Find the odd man from the following :a) c)

4

b) d)

MAN LAN

Very Important Resources Under Surveillance Vulnerable Information Resources Under Surveillance Vital Information Resources Under Siege None of the above

What are the charges for new Domestic ATM card issue? a) c)

6

WAN TAN

Expand the term VIRUS a) b) c) d)

5

It is the 24 carat gold we sell at our branches It is an ATM cum Smart Card co-branded by SBI and IOC It is a book written by our President Dr. A.P.J. Abdul Kalam None of the above

Rs. 200 Rs. 50

b) d)

Rs. 500 Free of cost

What is the name of the traveller loyalty card jointly launched by the Indian Railways and SBI Card ? a) c)

SBI Shubyatra IR Shubhyatra

b) d)

Shubhyatra None of the above

418


7

State Bank of India is forging ahead to obtain certification for its ATM and Core Banking Solution under the British standard for information security management, providing a comprehensive set of controls for best practices in information security. What is that certification called ? a) c)

8

b) d)

BS7799 None of the above

A new payment system which takes care of transactions between SBI and Associate banks is : a) c)

9

SB7788 SB7799

RTGS GRPT

Using onlinesbi.com, transaction/business :

b) d) a

retail

NEFT None of the above customer

cannot

do

the

following

Payment for mobile bills View account information Open a new account Transfer his account to other branch 10

What are the annual charges to be levied from an existing ATM card holder ? a) c)

11

Rs. 50 None of the above

State Bank of India Punjab National Bank

b)

Bank of Baroda d) None of the above

What are the charges levied by the bank for issuance of duplicate ATM card? a) c)

13

b) d)

Which bank has launched first-ever floating ATM on a boat ? a) c)

12

Rs. 100 Rs. 150

No charges are levied Rs.200

b) d)

Rs.100 Rs.500

RTGS was started by RBI on : a) c)

26th July 2000 26th March 2004

b) d)

26th June 2002 26th April 2005

419


14

RTGS is a : a) c)

15

Payment System Both a & b

b) d)

Receipt System None of these

RTGS enables transfer of funds : a)Between two banks . b)From the remitter’s account in a particular bank to the beneficiary’s account. c)Both a & b d)None of the above

16

Under normal circumstances, if we transfer funds from one account to another bank's account through RTGS, how long will it usually take to credit that account ? a) c)

17

Usual draft charges No charges at all Usual draft charges plus courier charges only courier charges

Rs. 25,000/Rs.50,000/-

b) d)

Rs.40,000/Rs.5,00,000/-

Under retail Internet Banking, what is the maximum limit for third party transfer ? a) c)

20

15 Minutes 1 Hour

Under retail Internet Banking, what is the maximum limit for draft ? a) c)

19

b) d)

If a customer applies for issuance of draft through his Internet Banking account, what charges we will charge from him? a) b) c) d)

18

1 Day 30 Minutes

Rs. 25,000/Rs.50,000/-

b) d)

Rs.40,000/Rs 5.00 lacs

How e-Pay (online bill payment) facility of SBI benefits the customer ? a) b) c) d)

It enables the customer to schedule his payments for various bills. It enables him to automatically pay on specific amount/day every month. It enables him to pay/view his transaction. All the above 420


21

What is the amount charged from the customer for re-generation of PIN for his ATM-cum-Debit card ? a) c)

22

b)

Outward remittance only d) None of these

Rs. 25,000/Rs.50,000/-

b) d)

Rs.40,000/Rs 10.00 lacs

RBI Both RBI & SBI

b) d)

SBI RBI, SBI & ICICI Bank

Under Internet Banking, the maximum limit for inter branch funds transfer is ? a) c)

26

Inward remittance only Both Inward & Outward remittances

Who has launched NEFT ? a) c)

25

Rs.100/No fee charged.

Under Internet Banking,what is the maximum limit for inra branch funds transfer ? a) c)

24

b) d)

State Bank of India has entered into an agreement with Western Union's Kouni Travels. The duo will falicitate the customer in : a) c)

23

Rs. 50/Rs.200/-

Rs. 25,000/Rs 5.00 lacs

b) d)

Rs.40,000/Rs 10.00 lacs

Under NEFT, the funds settlement will take place a) b) c) d)

Twice a day Every half an hour Only once a day i.e. at 12 Noon Any time the batch processing takes place at the funds collection centre

27

State Bank of India has launched its ‘Multi City Cheque’. These cheques books can be issued at : a) only CAG branch b) Any CBS Branch c) Only MCG Branch d) None of the above

28

What are the instrument types assigned to 'Multi City Cheques' by RBI ? a) c)

29 31

b) d)

30 a,b & c

421


What is the demat service product of SBI’ ? a) c)

30

RTGS eZ Trade

b) d)

NEFT EFT

Why has the minimum transaction limit for RTGS transactions been raised ? a)

To reduce traffic on RTGS

b)

c)

Both a & b

d)

To increase usage of NEFT None of the above

KEY TO GENERAL AWARENESS – COMPUTERS – 3


1 C 11 A 21 A

2 B 12 C 22 A

3 C 13 C 23 d

4 C 14 A 24 A

5 D 15 B 25 B

6 B 16 C 26 D

7 B 17 C 27 B

8 C 18 D 28 D

9 D 19 D 29 C

10 B 20 D 30 c

422


CORE BANKING SOLUTION - 1 1.

Centralised Data Base/Main Server for Core Banking Branches has been installed at: a) Central Data Centre at Belapur, Mumbai b) SBIICM, Hyderabad c)FD, Kolkata d) All LHO Headquarters

2.

The CBS software is different from Bankmaster for the undernoted reasons: a) The Bankmaster had a stand-alone server and database while in CBS these are interconnected between all the branches. b) While CBS is a window-based package, Bankmaster was not. c)While in Bankmaster, the customer becomes a customer of a specific branch, in CBS he becomes customer of the Bank as a whole d) All of the above.

3.

CBS Software acquired by the bank is: a) B@ncs24 c) Finance-one

4.

B@ncs-link Trade-Finance

b) d)

FNS, Australia HP Systems, USA

Name of the software acquired by the bank for maintaining CGL (Corporate General Ledger) accounts in core banking environment is: B@ncs-24 c) Finance-one

7.

b) d)

The bank has acquired the CBS software from: a) TCS Ltd., India c) China Systems, Dubai

6.

B@ncsLink d) Trade-Finance

Name of the Front-end software used at CBS branch server is: a) B@ncs-24 c) Finance-one

5.

b)

b) B@ncs-ink d) Trade-Finance

The bank has acquired 'Finance-one' from: a) Comlink, USA c) China Systems, Dubai

b) d)

FNS, Australia HP Systems, USA 423


Name of the software acquired by the bank for Trade-Finance is: a) B@ncs-24 b) B@ncs-link c) Finance-one d) Exim-Bills

9.

The bank has acquired Exim Bills from: a) B@ncs-24 b) c) China Systems, Dubai d)

10.

'Disaster Recovery Centre' for the CBS has been located at: a) Chennai c) Hyderabad

11.

b) d)

PCS Ltd. HP Systems, USA

b) d)

PBB-Hyderabad PBB-Chennai

b) d)

01/09/2003 14/12/2003

Inter-connectivity of the CBS branches is maintained with CDC-Belapur through: a) Internet c) STEPS

16.

FNS, Australia HP Systems, USA

Core Banking was first implemented on: a) 29/06/2003 c) 16/09/2003

15.

b) d)

The first branch of State Bank of India where Core Banking was started is: a) PBB-Chandigarh c) Hirannandani, Mumbai

14.

New Delhi Bangalore

Core Banking Solution-Hardware installed at CDC has been acquired from: a) TCS Ltd. c) Wipro

13.

b) d)

Name of the company that has been entrusted with the work relating to customization, integration and pilot implementation of CBS is: a) TCS Ltd., India. c) China Systems, Dubai

12.

B@ncs-link HP Systems, USA

b) d)

SBIConnect All the above

In case of failure of connectivity, the CBS branch: a) Cannot perform any function b) Can perform limited functions available on OFFLINE Mode c)Can perform functions only from a separate node provided at the branch for the purpose d) None of the above 424


17.

Multi City cheques have been introduced for Mid Corporate Customers in many Mid Corporate Group Branches on CBS. The maximum value of single MCC would be a) 10 Lacs c) 15 Lacs

18.

Single Window Operator Automated Teller Machine i.e. ATM

b)

Accountant/Joint Custodian d) All of the above

You can log into Core Banking Software (a 'Window' based programme) through :a) My Computer c) Internet Explorer

21.

b) d)

In Core Banking Solution, a 'Vault Teller' means: a) Cash Officer c) Branch Manager

20.

5 Lacs 20 Lacs

In Core Banking Solution, a 'Teller' means: a) Branch Teller c) All the users

19.

b) d)

b) d)

My Documents Microsoft Word

Finance-one' software is available at CBS branches :a) On all the nodes b) On one or two nodes- preferably with Branch Manager/Accountant etc. c)On the node of officer entrusted with UCO's powers d) None of the above

22.

http://10.0.2.154 is the address of :a) Site of SBITIMES b) Site of E-Circulars c)Site of CBS Help Desk d) Site of E-learning- a package for self learning CBS

23.

http://10.0.2.153 is the address of :a) Site of SBIMAIL b) Site of E-Circulars c)Site of CBS Help Desk d) Site of E-learning- a package for self learning CBS

425


http://10.0.23.23/caisd/pdmweb.exe is the address of :a) Site of SBITIMES b) Site of E-Circulars c)Site of CBS Help Desk d) Site of E-learning-a package for self learning CBS

25.

Sites of E-Circulars, E-learning and CBS Help Desk are available :a) Through Internet c) Both of (A) & (B)

26.

b) d)

Through SBICONNECT None of the above

Sites of E-Circulars, E-learning and CBS Help Desk are available on :a) The nodes provided to the Branch Manager & Managers of Division b) The nodes provided to the Branch Manager & Accountant c) The nodes provided to the Branch Manager & UCO d) All the nodes in any branch/office of the Bank on SBICONNECT

27.

ID of an employee of State Bank of India in Core Banking Solution will be a) His/her Provident Fund Index Number b) Any seven digits/letters chosen by the employee c) Date of birth of the employee d) A unique number will be allotted by CDC, Belapur

28.

Minimum alpha-numeric required for user's password in CBS is :a) Five digits b) Six digits c) Seven digits Eight digits

29.

In a CBS branch, an authorized user can log in from :a) Any terminal subject to the total no of terminals linked with CDC Belapur. b) Terminal specified by the Branch Manager c)Terminal specified by the System Administrator d) Terminal specified by the CDC, Belapur

30.

In CBS branches, after permanent transfer of a user, his/her ID will be transferred to his/her new branch by :a) The branch from where he/she is transferred b) The branch to which he/she is transferred c) CDC, Belapur, Navi Mumbai d) Any of the above 426


KEY ASSIGNMENT CORE BANKING SOLUTION – 1


1 A 11 A 21 B

2 D 12 D 22 A

3 A 13 C 23 B

4 B 14 B 24 C

5 B 15 B 25 B

6 C 16 B 26 D

7 A 17 A 27 A

8 D 18 C 28 B

9 C 19 B 29 A

10 A 20 C 30 A

427

STATE BANK LEARNING CENTER, PANCHKULA CORE BANKING SOLUTION - 2 31.

In CBS system, to move from one field to another, the user has to use undernoted keys/mouse: a) Key c) Mouse

32.

b) d)

In CBS, management of cash has been made a part of the software/system. As such, undernoted official(s) will become the custodian of the cash held at the branch overnight :a) Branch Manager c) Cash Officer

33.

Key (b) &/or (c)

b) d)

Accountant/Joint Custodian All of the the above jointly

In CBS, Cash Drawer has been referred to as :a)Cashier's cabin b) Strong Room c)Cashier's hand balance box d) A tool for recording cash receipts/payments/balance details of any individual user

34.

In CBS, management of security forms has also been made a part of the software/system through menu- VPIS. The term VPIS stands for :a) Valuable Paper Industry Sector b) Valuable Paper Inventory System c) Valuable Paper Instrument System d) Valuable Paper Instrument Sector

35.

In CBS, the undernoted official is treated as custodian of security forms :a) Branch Manager c) Cash Officer

36.

Accountant All of them jointly

Like Bankmaster, CBS screens also have MANDATORY and OPTIONAL fields. Which of the following colours has been given to the MANDATORY fields :Yellow c) White

37.

b) d)

b) d)

Red Blue

In CBS, 'Loan Tracking' concept has been introduced for Demand Loans/Term Loans. In which of the undernoted ways, 'Loans Tracking' helps the user :-

428

STATE BANK LEARNING CENTER, PANCHKULA a) It guides him regarding all the activities related to grant of/disbursement of Demand Loans/Term Loans b) It guides him only regarding the follow-up of Demand Loans/Term Loans c) It guides him only regarding interest rates and margin rates specified for various types of Demand Loans/Term Loans d) None of the above 38.

In CBS, Customer Information File (CIF)/Customer Number is necessarily created for the undernoted type(s) of customer(s) :a) Introducer c) Joint Account Holder

39.

In CBS, every Customer Number/CIF is of ______digits :Nine c) Eleven

40.

b) Nominee d) a & c

b)

b) d)

Ten Twelve

b) d)

Collection Management Product Classified Management Product

All the internal (non-customer) accounts have been referred in the CBS as a) CGL c) Branch Clearing Accounts

44.

100 111

CMP stands for :a) Cash Management Product c) Clearing Management Product

43.

b) d)

In CBS, every Account Number generated by the centrally located server at CDC is unique. Every Account Number is of __digits. a) Nine c) Eleven

42.

Twelve

Recording of KYC (Know Your Customer) ID- as directed by the RBI is compulsory while creating a new Customer in CBS. To verify that the ID produced by the customer is adequate to operate bank account, the ID should have minimum ____ KYC scores :a) 99 c) 110

41.

Ten d)

b) d)

BGL Inter Branch Accounts

In case of any difference between BGL and CGL balances that may creep in, an software called GLIF has been provided to facilitate its location. Full form of the term GLIF is :-

429

STATE BANK LEARNING CENTER, PANCHKULA a) General Ledger Information File b) General Ledger Interface File c)General Ledger Internal Accounts File d) None of the above 45

In CBS, there is a concept called 'NPA Tracking' which means :a) The system will help the user to know the existing as well as probable NPA status of all the outstanding loan accounts b) The system will automatically change the asset category of all the loan accounts on the specified date c) The system will put through INC entries on its own All of the above

46.

In CBS, overdraft in Savings Bank Accounts will be allowed by :a) Debiting the amount to a Current Account named 'Overdrafts Allowed In Savings Bank Accounts' b) Debiting the amount to the concerned Savings Bank Account itself c) Can be allowed only by CDC, Belapur Cannot be allowed at all

47.

There are 16 capability levels of CBS users. Out of which levels available with the branch staff are: a) 5 c) 11

48.

b) d)

The Term used in CBS, corresponding to ‘Job Stream’ in BankMaster, through which a number of transactions can be put through in CBS is a) CBS Feed c) Auto Feed

49.

b) d)

Trickle Feed None of the above

To view the images ( photos or signatures ) in a CBS system, one can press a) F10 c) F3

50.

9 7

b) d)

F11 F8

Many Reports are available in a CBS branch. The Day books in a CBS branch have been given the name of a) V V R c) DAY BOOKS

b) d)

CBSDB None of the above

430


Default password of ‘Service Desk’ of CBS is a) Your P.F. Index c) service desk

52.

b)

Your branch code d) servicedesk

If a Customer number of a branch starts with 80, it indicates that this customer number relates to a customer migrated from BankMaster b) this customer number has been created in B@NCS24 c) this customer number relates to a customer of some other branch could be any one of the above

53.

Number of IRAC status codes for Loan Accounts in B@NCS24 are a) 5 c) 11

54.

9 8

During OFFLINE mode in a CBS branch, following can be done a) Transaction of a non-home branch c) Opening of an Overdraft Account

55.

b) d)

b) d)

Government Transactions None of the above

Under CBS umbrella, RTGS services have been enabled in a) Only those branches who have been identified b) All the CBS branches. c) Only the branches in Kerala Circle on Pilot basis d) None of the CBS branches

56.

For making a correction in a CBS transaction, one has to know its journal number which helps in its reversal and subsequent correction. Such reversal is possible a) Within 2 days of effecting the transaction b) Within 1 hour of effecting the transaction c) On the same day but before sending EOD signal from the branch Depends upon CDC Belapur

57.

Soft Copy of a file containing Salary or Pension, when sent to CDC through one of the options of CBS gets posted thereat through a process called Trickle Feed. Transactions normally gets posted in the account a) After 2 days of sending the softcopy b) Within 1 hour of sending the softcopy c) At period intervals – depends upon CDC d) None of the above 431


58.

User type of Accountant in a CBS branch is a) 40 c) 60

59.

b) d)

When a CBS branch has to go on OFFLINE following activities can not be done a) Issue of drafts c) Cash Withdrawals

60.

50 10

b) d)

Cash Receipts Printing of Cash Reports

In CBS branch calendar WW is defined as a working day . Holidays are defined as a) HL c) HO

b) d)

HH HY

KEY ASSIGNMENT CORE BANKING SOLUTION – 2 Q. Ans. Q. Ans. Q. Ans.

31 D 41 C 51 D

32 B 42 A 52 A

33 D 43 B 53 D

34 B 44 B 54 D

35 B 45 D 55 B

36 D 46 B 56 C

37 A 47 B 57 C

38 D 48 B 58 B

39 C 49 A 59 A

40 C 50 A 60 B

432

STATE BANK LEARNING CENTER, PANCHKULA CORE BANKING SOLUTION – 3 61.

In CBS, during OFFLINE mode Accounts of the following can be opened a) P Segment c) AGR Segment

62.

b) d)

SIB Segment None of the above

To logout from the CBS system, which works under WINDOW environment, you have to a) Press [X] button on the top right hand on the screen b) Shut of the system c) Chose log off button d) Any one of the above e) Sign off

63.

A CBS word equivalent to ‘Referral’ of BankMaster is a) Que c) Chose logout button

b) d)

CBS Referral Any one of the above

64.

Every Teller in a CBS branch has an electronic Cash Drawer and can make the customer cash transactions EXCEPT the a) Cash Officer b) Field Officer c) Accountant d) Branch Manager

65.

Which of the following is not true in CBS environment a) Tellers can swap cash in their Cash Drawer b) Tellers can swap VPIS (Drafts/Cheque Books etc. ) among themselves c) Tellers can exchange cash with a customer d) All of the above

66.

Internal Accounts of all the CBS branch like Charges, Branch Cash Balance Account etc which are called BGL Accounts. Numbering convention of such accounts is such that a) First five digits are the branch code – Second five are common b) First five digits are common – Second five are branch code c) Each branch has a unique BGL Account number d) None of the above

67.

Last digit of a 11 digit Account number in a CBS branch is called a) Check digit c) Last digit

b) d)

Unique digit None of the above 433


68.

Reports relating to GLIF – matching of B@NCS24 and Finance1 – indicating the difference if any are available at a CBS branch a) Within 1 hour of sending EOD signal b) Before sending EOD signal c) On the next day None of the above

69.

Which one of the following is False. a) Number of a migrated customer account starts with 80 b) Number of a customer opened in B@NCS24 starts with 85 c) Number of a migrated Account starts with 1 None of the above

70.

‘Status List’ of Bankmaster has an equivalent in B@NCS24 and is called a) Shadow File c) PD File

71.

b) d)

F11 None of the above

b) d)

F4 F8

Institute Code of SBI in B@NCS24 (in use by the SB Group) is a) 1 c) 3

75.

2 4

When a customer having BankMaster Account number wants to know his corresponding CBS number, which function key is pressed a) F3 c) F7

74.

b) c)

Which function key is pressed to repeat the Customer/Account number typed last on a CBS screen. a) F9 c) F12

73.

Night File FB Data

How many CBS sessions can be opened simultaneously by a Teller ? a) 1 c) 3

72.

b) d)

b) d)

2 4

CC and OD accounts have been clubbed in CBS whereas with Deposit Account whereas TL and DL accounts clubbed separately. The rationale is

434

STATE BANK LEARNING CENTER, PANCHKULA a) In Deposit/CC/OD, cheques books can be issued b) In Deposit/CC/OD, accounts can have credit balances c)In DL/TL, accounts can not have credit balances d) All of the above. 76.

In CBS system the term collateral means a) Primary Security Only c) Covers both of them

77.

Secondary Security Only None of the above

Collateral number generated by CBS system is of a) 11 digits c)12 digits

78.

b) d)

b) d)

10 digits 9 digits

In CBS, credit voucher of a S.C sent shall be included a) in the vouchers of the day on which it was dispatched b) in the vouchers of the day on which it was entered in the system c) in the vouchers of the day on which it is realised / returned d) None of the above

79.

In any CBS screens there are 2 types of fields, white and blue. While filling the values in these fields a) Blue fields are mandatory – others can be ignored b) White fields are mandatory – white ones can be ignored c) Blue fields are mandatory – others can not be ignored d) White fields are mandatory – others can not be ignored

80.

In any CBS system Interest frequency has to be defined while opening a TDR account along with the account number in which the interest has to be credited by the system. Which of the interest frequency can NOT be given. a) Anniversary Quarterly b) Anniversary Monthly c) Quarterly d) Anniversary Yearly

81.

In any CBS branch which of the following transactions relating to P-Segment can not be made from a non-home branch. a) A cheque of Rs 15000.00 without paying any charges b) A cheque of Rs 20000.00 without paying any charges A cheque of Rs 25000.00 after paying charges A withdrawal of Rs. 18000.00 without paying of charges

435


In a CBS branch which of the following is wrong (in context to non-home branch transactions relating to a P-Segment Customer). a) Transactions of an illiterate customer can not be done b) Transactions relating to a dormant account can not be made c) Transactions relating to inoperative account can not be made d) Transactions relating to a joint account where drawer is the payee can not be made.

83.

In a CBS branch if there is a connectivity failure a) No payment can be made b) payment can be made on basis of Deposit accounts balance list c) Payment can also be made after verifying the balance from another Core banking branch telephonically d) Both b & c

84.

In a CBS branch the account BGL account beginning with 98582 represents a) Atm entries where account debited but cash not paid b) Atm entries where cash paid but account not debited c)None of the above

85.

On every incoming message through RTGS, to know how many messages have come, one has to a) Keep a Register to note how many message have been received b)

To go to enquiry option and click on ‘All Statuses’ to see the status of ‘Successful messages’ c) To enquire the account related to STEPS (RTGS) messages in the CBS system through BGL option d) All of the above 86.

In a CBS branch conducting OLTAS transaction, which of the following report is generated daily for submission to the Focal Point Branch. a) GAD 2 b) GAD3 c)GAD4 d) GAD 5

436


87.

In a CBS environment payment of IOIs is safer as compared to drafts because a) The inventory allocated to a particular branch is fed in the system by Central stationary department b) The payment involves the input of BIAK (Built in authentication key) which cannot be bypassed. c) Both a) and b) d) None of the above

88.

In a CBS branch the following is False a) If a Customer gives a cheques drawn on another core branch at the same centre, the same shall be immediately be presented in a special clearing b) At the same centre no commission is payable by a customer depositing an amount of 25000 from a CBS branch to another c) Rates of TPM depend upon the population code of the branch, which needs to checked by the branch to ensure accuracy of TPM rates. d) Weekly figures of the Branch / Bank are available every day instead of only on Fridays in Bank Master.

89.

In a CBS branch the corrections to be made on account of errors pointed in CIS have to be corrected. In this context, which of the following statement is correct. Corrections are to be done in a) In DOSCIS b) In B@ncs24 c) No corrections to be made in B@ncs24 as these are automatically written back by DOSCIS software a) and b) both

90.

Number of ‘Day Book’ kind of reports sent by CDC Belapur to every branch on daily basis after EOD thereat are a) VVR b) VVR & BGL c) VVR, BGL & Core Power d) VVR, BGL, Core Power & System Generated transactions

437

STATE BANK LEARNING CENTER, PANCHKULA KEY ASSIGNMENT CORE BANKING SOLUTION - 3 61. 66. 71. 76. 81 86

d b b c d d

62. 67. 72. 77 82 87

e a c b d c

63 68. 73. 78 83 88

a c d c d a

64. 69. 74. 79 84 89

c d c c a d

65. 70. 75. 80 85 90

b a d c b d

438


INFORMATION & TECHNOLOGY 1 1) SB Connect, the dedicated lease line connectivity, is maintained by ----a) TCS, India b) FNS, Australia c) Datacraft, Singapore d) HP System, USA 2. Which is the first branch of SBI on Core Banking Solution? a) PBB Bandra, Mumbai b) PBB Belapur, Mumbai c) PBB Hiranandani, Mumbai d) PBB Madame Cama Road, Mumbai 3. The State Bank of India’s internet banking site is... a) www.onlinesbi.com b) www.statebankofindia.com c) www.sbi.co.in d) www.inb.sbi.com 4. Corporate Internet Banking was rolled out by the Bank on a) 1st March 2002 b) 1st July 2003 c) 1st July 2002 d) 1st April 2003 5. The BGL account beginning with 98582 refers to a) ATM trancactions where cash is paid but account not debited b) ATM trancactions where cash is not paid but account is debited c) None of the above 6. Under the Fast Cash option, cash can be withdrawn in fixed amounts of -----from our ATMs a) Rs. 1000/- , Rs. 2000/b) Rs. 5000/- , Rs. 10,000/-. c) Rs.1000/- , Rs. 2000/- , Rs. 3000/- or Rs. 5000/ d) Rs. 2000/- , Rs. 5000/- , Rs 7000/7. The name of the software used for Tele banking is a) Datacraft b) Intrasoft c) Softcraft d) CRAFT

439


8. The software being used in SBI for conduct of government transactions and electronic reporting has been developed by a) IDRBT b) SBI c) Infosys d) TCS 9. 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 10. The turnkey solution provider for implementing National Financial Switch (NFS) is a) NCR Corporation b) Euronet Worldwide c) FNS Australia d) HP Systems 11. The Security of SBI’s internet Banking site is certified by a) VERISIGN b) SECURESIGN c) INBSIGN d) TRUESIGN 12. SBI ATM Cards are processed and issued by a) ATM Switch Centre, Belapur b) Mastercard c) Venture Infotech Global Pvt. Ltd. Mumbai d) GECBPMSL, Gurgaon 13.

For issuance of duplicate ATM Card in case of lost/damaged card a charge of Rs_____ is levied. a) Rs 100/b) Rs 200/c) Rs 50/d) Activated Card

14. “Hotlisting” of Card refers to a) Mutilated Card b) Deactivation of lost ATM Card at ASC c) Revalidation of Card after expiry. d) None of the above

440


15. SBI ATM-cum-Debit Card can be used for purchasing goods and services at Merchant Establishments displaying a) Mastercard logo b) VISA logo c) Maestro logo d) None of the above 16. Can a Card be issued against a minor’s account? a) No b) Yes, a card may be issued to a minor if he/she is above 14 years of age. An add-on card may also be issued to the guardian. c) Card may be issued only to the Guardian. d) None of the above. 17. The connectivity infrastructure of our ATM Network is maintained by a) ATM Switch Centre b) NCR Corporation c) HCL Comnet (VSAT) & Datacraft (SB Connect) d) Satyam 18. The charges realized for using ATMs of other Banks under Bilateral Agreement in case of saving bank account are: a)upto 10 withdrawals free and above 10 withdrawal transactions, Rs.20/- per withdrawal and NIL for balance enquiry b) upto 5 withdrawals free and above 5 withdrawal transactions, Rs.20/- per withdrawal c) upto 3 withdrawals free and above 3 withdrawal transactions, Rs.20/- per withdrawal and NIL for alance enquiry d) None of the above 19. ATM Switch Centre is managed by the Bank with the technical support of a) C&I Project, Corporate Centre b) NCR Corporation c) Financial Software & Systems, Chennai d) Datacraft 20. For the purpose of accounting, cash loaded in our ATM belongs to a) Concerned Branch b) ASC, Belapur c) ATM Project, Corporate Centre d) None of the above

441


KEY INFORMATION & TECHNOLOGY 1 1 c 6 c 11 a 16 b

2 c 7 d 12 c 17 c

3 a 8 b 13 b 18 b

4 a 9 c 14 b 19 c

5 C 10 b 15 c 20 a

442

STATE BANK LEARNING CENTER, PANCHKULA INFORMATION & TECHNOLOGY 2 1. Offline transactions in SBI ATMs are made possible through maintenance of a) Opticash b) Groupwise c) Positive Balance Files (PBF) d) NCR Managed Services 2. What is Opticash ? a) Cash loading in ATM by outside agency b) Management of Cash in ATM by NCR to avoid cash outages c) Remote Monitoring of ATMs by Switch Centre d) None of the above 3. BANKNET has been established by a) All Banks b) SBI c) RBI d) Co-operative Banks 4. In SBI, ATM stands for a) Automated Time Money b) Automated Teller Machine c) Automated Teller Machine or Anytime Money d) Anytime Money 5. What does SBIR stands for? a) State Bank Inward Remittance b) State Bank Instant Remittance c) State Bank In-house Remittance d) State Bank of India Remittance 6. Network Service Provider for Core Banking is a) Airtel b) Reliance c) BSNL d) Broadband Service 7. Core Banking Solutions (CBS) for foreign offices software is called a) Finance b) Financial c) Finnacle d) Bank Master

443


8. The CBS for foreign offices is supplied by a) Satyam b) Infosys c) FNS d) Data Craft 9. As per BPR, Document Archival Centres have been created which will function as. a) Centralized Document Execution Centre b) Centralized Document Printing Centre c) Centralized Record Maintenance cell d) Centralized Document Centre for closed accounts 10. State Bank of India has launched its ‘Multi City Cheque’. These cheques books can be issued at : a) Any CAG branch of the Bank c) Only Bankmaster Branch

b) Any CBS Branch d) Only MCG Branch

11. After the establishment of Liability Processing centre the account would be opened in ----to----minutes. a) 10-12 c) 6-8

b) 8-10 d) 7-8

12. Who can create securities? a) All staff with a capability of 2 and above can create security. b) All staff with a capability of 3 and above can create security c) All staff with a capability of 5 and above can create security d) None of these 13. Who can authorise the securities thus created? a) Any Official of the branch with a capability of 5 and above can authorise the securities created. Creator and authoriser should be different persons. b) Any Official of the branch with a capability of 7 and above can authorise the securities created. Creator and authoriser should be different persons. c) Any Official of the branch with a capability of 9 and above can authorise the securities created. Creator and authoriser should be different persons. d) None of these

444


14) What is the maximum amount that can be entered in the ‘Hold Value’ column? a) The hold value can be up to the value of TDR plus accrued interest. b) The hold value can be up to the value of TDR alone c) The hold value can be up to the value of loan amount d) None of these. 15. What is a Collateral Number? a)When a security is created, the regt no. on the regt.deed of property to be mortgaged is entered as collteral number. b) When a security is created, the system generates a unique 10-digit number automatically and this number can be used to enquire into the details of securities, the loan account number for which the security is created and other relevant details of the customer. c) When the security is created, the particulars of the collateral security are noted in a register, that running serial number is called collateral number. d) None of these 16) What is meant by SDV? a) SDV sub-module refers to Safe Deposit Value, It handles maintenance of lockers, b)SDV sub-module refers to Safe Deposit Value, it handles Collecting periodical rent etc. c) Both 1 & 2 d) None of these 17)What is meant by SC? a) SC sub-module deals with two major functions viz. Safe Custody of articles / scrips, Security Register / Ledger and maintenance of gold ornaments. b) Issue of Safe Custody Receipt to the customers, Printing of COS 49, Ex-custody Register functions c) Both A & B d) None of these 18) While creating TDR as security, whether the system will automatically mark the interest rate in the Loan account? a)For Demand / Term Loan accounts, the system will automatically fix the interest rate at the account level. b) For Demand / Term Loan accounts, the system will not fix the interest rate at the account level. It will have to be done manually. c) For Demand / Term Loan accounts, the system will fix the interest rate after the EOD. 445

STATE BANK LEARNING CENTER, PANCHKULA d)None of these. 19) What will happen to the ‘Hold / Drawing Power’ when the TDR is rolled over? a) When the TDR is rolled over, the hold in the account gets removed, the drawing power remains as such. b)When the TDR is rolled over, the hold in the account does not get removed, only the drawing power becomes zero. c) When the TDR is rolled over, both the hold & drawing power gets removed d) None of these 20) The branch should ensure that there is only one person with user type ---- and ----. a) 50 & 60 b) 40 & 50 c) 40 & 60 d) 10 & 60 KEY INFORMATION & TECHNOLOGY 2

1 c 6 c 11 b 16 c

2 b 7 c 12 a 17 c

3 c 8 b 13 a 18 a

4 b 9 c 14 a 19 b

5 b 10 a 15 b 20 a

446


MOBILE BANKING 1.

For Mobile Banking registration, SMS ‘ < mobile Model’ has to be sent to a) 567636 b) 567656 c) 567676

2.

Name of the Mobile Banking Software is : a) State Bank freedom b) SBI freedoM c) SB freedom

3.

The catch line which goes with Mobile Banking is : a) With you, All the way b) Your Mobile, Your Bank c) Bank with convenience

4.

Mobile banking services as at present are meant for a)SME customers only b) SME and personal segment customers c) Personal segment customers only d)C & I customers only

5.

Daily transaction limit for fund transfer in normal transaction is : a) 50,000 b) 10,000 c) 25,000

6.

Daily transaction limit for Bill/Merchant transaction is : a) 50,000 b) 10,000 c) 25,000

7.

What is the overall monthly limit of transaction through Mobile Banking.? a) 250,000 b) 30,000 c) 35,000

8.

What is the next step after changing the MPIN for registration of mobile banking a) Entering the CIF b) Answering a secret question c) register at ATM or branch 447


9.

What is the number of maximum accounts which can be enabled for Mobile Banking ? a) 1 b) 2 c) 3 d) 5

10.

During(Prior to ) registration process what is mandatory to change ? a) MPIN b) USER ID c) Both of above d) None of above

11.

MPIN in Mobile Banking stand for a) Mobile Banking Personal Index Number b) Mobile Banking Personal Identification Number c) Member Banking Personal Identification Number

12.

What is the length of MPIN ? a) 4 characters b) 5 characters c) 6 characters d) 8 characters

13.

What type of transaction can not be carried out in Mobile Banking as on date ? a) Transafer of funds to other Bank Account b) Cheque Book Request c) Railway ticket Booking d) None of these

14.

Whether Internet Banking registration is mandatory for accessing Mobile Banking a)Yes b) No

15.

How many users can use Mobile Banking on a particular Mobile phone a) 2 b) 5 c) 1 d)3 448


16.

How can Mobile Banking Services be terminated ? a) Cannot terminate once registered b) Selecting the option ‘Deregistration’ in the settings menu c) Deregister through an ATM d) Both B & C

17.

How many transactions of a account can be viewed in mini statement option a) 2 b) 5 c) 8 d) 10

18.

First step for bill payment through Mobile Banking is : a) Add Biller b) Get Help c) Get Format d) None

19.

Is registration is mandatory for Mobile Top up ? a) Yes b) No

20.

When is the request for Mobile Top up invalid ? a) Non existing mobile number b) Post paid mobile number c) Insufficient funds in your account d) Incorrect amount as per the plan of the prepaid connection e) All of the above

21. In case of Dmat account services available in mobile banking it is not possible to do one of the following a) View last 5 transactions b) Request for DIS c) View portfolio d) sell shares 22.

WAP stands for a) Wireless application protocol b) Wireless added process c)Wireless arranged protocol 449


23. WAP based mobile banking service is meant for a) only java enabled mobile phones which have GPRS connectivity for GSM users or data connectivity for CDMA users b) only non java enabled mobile phones which have GPRS connectivity for GSM users or data connectivity for CDMA users c) Both java and non java enabled mobile phones which have GPRS connectivity for GSM users or data connectivity for CDMA users d) Neither java nor non java enabled mobile phones which have GPRS connectivity for GSM users or data connectivity for CDMA users 24 In SMS banking the daily /monthly limits are a) 5000/50000 b) 1000/5000 c) 10000/50000 d) None of the above 25 .For topping a mobile connection through SMS banking what is not necessary a) MMID of the beneficiary b) Mobile no. of the beneficiary c) Service providers name d) Amount of top up 26 For funds transfer through IMPS banking what is not necessary a) MMID of the beneficiary b) Mobile no. of the beneficiary c) account no. of the beneficiary d) Amount to be transferred 27. For Mobile Banking registration, under SMS banking SMS (SMS) has to be sent to a) 567636 b) 567656 c) 567676 d) 9223440000 28.

What type of transaction can not be carried out in SMS Mobile Banking facility ? a) Transafer of funds to other Bank Account b) balance enquiry c) Mobile top up d) DMAT enquiry

450


30 .

Transactions through IMPS (Interbank mobile payment service) do not involve a) Core banking b) National payment corporation of India c) RTGS network If already registered in other modules of mobile banking ,if one has to avail SMS Mobile Banking facility : a) It is necessary to deregister in other modules before registering for SMS Banking b) It is not necessary to deregister in other modules before registering for SMS Banking c)USSD and SMS Mobile Banking facility can be taken together.

31.

In SMS Mobile Banking a) The messages are encrypted b) The messages are not encrypted ,hence the customer is requested to delete the SMS sent as they may contain MPINs. c ) Thev messages are communicated in an interactive session as in the case of USSD

ANSWERS MOBILE BANKING

Q. Ans. Q. Ans. Q. Ans. Q. Ans. Q. Ans. Q Ans. Q Ans.

1 c 6 a 11 b 16 d 21 d 26 c 31 b

2 a 7 a 12 c 17 b 22 a 27 d

3 b 8 c 13 d 18 b 23 c 28 d

4 b 9 d 14 b 19 b 24 b 29 c

5 a 10 a 15 c 20 e 25 A 30 a

451

STATE BANK LEARNING CENTER, PANCHKULA INB General 1. What does MIT refer to in case of INB ? a) Manual of information and technology b) Main internet technology c) Manual intervention transactions d) Manual information transaction 2. One of the following requests through INB does not require manual intervention. a) Account opening

b) DD issue c) Cheque book issue d)a/c enquiry

3. Profile password is set by the --a) customer

b) branch

c) CBD Belapur

d) internet provider

4. Profile password is meant for --a) Logging into internet d) increasing speed

b) enhanced security

c) giving status symbol

5. INB customers can further enhance their security while doing internet transaction through ---a) SMS based password b) having 2 login passwords c) by going to internet kiosk d) by a secret question 6. Mode of delivery of user ID and password for internet banking can be a) through dispatch from the INB dept only b )through PPK directly to the customer only c) either through dispatch from INB dept or through PPK d) neither through dispatch from INB dept nor through PPK 7. What does PPK refer to? a) pre packed kit

b) pre paid kit

c) personal pack kit

d) pre printed kit

8. Each packet of PPK has ----no of kits a) 100

b)50

c)150

d)200

452

STATE BANK LEARNING CENTER, PANCHKULA 9.Each PPK has 10 digit number where the first 5 digits stand for the packet Serial number and the next 2 digits represent Kit serial no

b) circle code

c) branch code

d) account type code

10.Internet service provider for internet banking for SBI is a) M/s Zee technology b) M/s Microsoft

c) M/s Satyam d) M/s Infosys

11. Internet banking site of SBI has been certified by a) Verisign

b) Goodsign

c)Satyam

d)ISO

12.One of the following is not true about the security features built into SBI’s Internet Banking site a) It has 128 bit SSL encryption b) provides for multiple users and user level security banking c) HPIN based password d) It has metal detectors 13. Transfer of funds in sbionline can be done using a) RTGS only b)GRPT and RTGS c) NEFT ,RTGS and GRPT d)ECS,GRPT and NEFT 14.Internet Banking site of SBI is a) www.onlinesbi.com c) www.sbi.co.in

b) www.statebankofindia.com d) www.sbi.org.in

15.PPK has to be claimed by the INB officer in a) SBITIMES c) B@ncs 24

b) onlinesbi d) Branch admin interface

16.One of the following functions in respect of internet banking are not Carried out at branch admin interface a)Reset of login and profile password b)Redispatch of id password c)reactivation of user id d)removal of posting restrictions

453

STATE BANK LEARNING CENTER, PANCHKULA 17.Each transaction done through onlinesbi generates a -----digit number a)6 b)7 c)10 d)16 18.When a Username gets deactivated it can be reactivated in a)Branch admin interface b) online sbi c)B@ncs24 d) Sbitimes 19.The password of a user gets locked for a day on internet if entered wrong ------ times consecutively a) 2 b) 4 c)5 d) 3 20.As per the bank’s single domain name policy branches/administrative units/ Application owners wanting to host their own banking site will register Their transactional site as subdomain of www.onlinesbi.com and their Informational site as subdomain of b)www.sbi.org.in a) www.onlinesbi,co d)www.sbiicm.in c)www.sbi.co.in 21. The recently introduced simplified branch INB role holding for small branches pertains to branches a) With 3 officers b) With less than 3 officers c) does not depend upon the number of officers d) None of the above 22. Which of the following will not constitute a part of the arrangement in the recently introduced simplified branch INB role holding for small branches . a) INB Maker b) INB Authoriser c) INB officer d) None of the above KEY INB General 1 c 9 b 17 c

2 d 10 c 18 a

3 a 11 a 19 d

4 b 12 d 20 c

5 a 13 c 21 b

6 c 14 a

7 d 15 d

8 a 16 d

454


CINB 1. Of the following types of forms used in CINB registration one of them is not matched properly.Which one is it ? a) C1 is used for registration of CINB customer b) C2 is used for registration of regulator c) C3 is used for registration of administrator d) C4 is used for registration of maker 2. Which of the following statement is true. i) Form B1 is used for advising the customer his registration ID ii) Form B2 is used for registration of Branch INB authorizer a) Only i) is true b) only ii) is true c ) Both i) and ii) are true d) neither i) nor ii) is true 3.One of the following types of products is not available to CINB customers a) Khata

b) Vistaar c) Vyapaar d) Vistaar plus

4. In case of which of the following types of CINB products amount per transaction cannot exceed Rs 50.00 lacs a) Vyapaar b) Vistaar c) Khata Plus

d) Khata

5. Which type of CINB facility provides for enquiry rights only on all accounts across branches a) Vyapaar b) Vistaar c) Khata Plus

d) Khata

6.In which of the following types of CINB facility it is possible to do full range of online transactions for corporates maintaining a/cs at multiple branches a) Vyapaar b) Vistaar c) Khata Plus

d) Khata

7.The type of CINB product that offers only enquiry rights at one branch only is a) Vyapaar

b) Vistaar

c) Khata Plus

d) Khata

8.The access channel that is set for a khata user in CBS is a) 09

b) 04

c) 01

d)02

455


9. A regulator’s role in CINB does not cover one of the following. a) Over all control of internet banking system b) Implementation of security features for whole corporate c) Participates in internet transactions d) He can define which user can do what 10.One of the following is not a type of user that can be created under CINB a) developer

b) authoriser

c) enquirer

d) auditor

11.One of the following is not a feature of the facilitiles available under CINB a) e-payments/e-receipts to and from registered users b) Bulk upload facility c) No check on access control and access rights d) Multiple level controls 12. A super enquirer is one a) who has unlimited power of transaction b) who has unlimited right of enquiry for all accounts of the corporate across branches c) who has unlimited power to control other users d) who has unlimited right to set limits on transactions 13.One of the following functions can not be performed by the administrator a) He can manage users b) He can modify access rights c) He can perform transactions d) He can reset profile/transaction password of users 14.One of the following is not true about the role of uploader a)He participates in bulk upload of data as or salary payments etc b) He generates test file from the file structure set by regulator c) He approves the test file d) The setting up of uploader’s role is mandatory 15.One of the following is not true about the rules or operating instructions Set by the corporate a)They define the power of the executives of the corporate to authorize the online transaction requests on an a/c. 456

STATE BANK LEARNING CENTER, PANCHKULA b)each of the INB Rule authorizer individually authorizes the rule formulated at the corporate end. c) INB rule authorizers approve the rules only if these are in keeping with the Mandate or board resolution submitted by the corporate d) It is not possible to change the rules once approved even when the corporate submits a fresh resolution. 16.One of the following is not included in the role profile of INB officer a) obtains various forms from corporate customer for registration of CINB b)Creates regulator (for Vistar customer) c) authorizes various rules set by the corporate d)creates administrator for (Khata plus,Vistar and Vyapar customers ) 17.The CINB user/ users created at the branch level are a)Regulator only b)administrator only c)neither regulator nor administrator d) both regulator and administrator 18.The administrator of the corporate prints the following form for getting the PPKs of other corporate users issued from the branch a)form C1 b)form C7 c)form C6 d)form C8 19.The maximum amount of draft that can be issued per transaction in case of Vistaar is a)Rs1.00cr

b)Rs5.00cr

c)Rs2.00cr

d)Rs10.00cr

20.The preprinted kits to the users in case on CINB customer are given through a) B@ncs24 b)Branch Admin Interface c)Onlinesbi d)Sbitimes 21. The facility through the Internet banking user makes payment after selecting the desired corp /Institution available under a link in the Internet banking website is a) e -collect b) i -collect c) i collection d) None of the above 22.While Creating a Regulator /Administrator in Vistaar /Vyapaar the registration of the mobile numbers of the functionaries is a) Mandatory b)Non Mandatory c) cannot be done d) None of the above 457


23. The E-Tax limit per transaction in the case of Vistaar is a) Rs 500 crore b)Rs 50.00 lacs c) Rs 5.00 crores d) None of the above 24. The ‘mall on Mobile’ facilitywhich permits the booking of Railway tickets and purchases on mobile is called a) Grand Mall b)Ambiece mall c) ngpay d) None of the above KEY CINB 1 d

2 c

3 d

4 a

5 c

6 b

7 d

8 a

9 c 17 d

10 a 18 b

11 c 19 a

12 b 20 b

13 c 21 b

14 d 22 a

15 d 23 a

16 c 24 c

458


D mat 1. ez-trade@sbi is a 3in 1 a/c because it provides an integrated platform of a) TDR a/c, demat a/c, and online trading a/c b) S/B / current a/c, demat a/c, and online trading a/c c) loan a/c , online trading a/c , and demat a/c d) PPF a/c, online trading a/c , and demat a/c 2.ez-trade@sbi is provided by SBI in association with a) Relianceinfocom, ICICI securities b) SBI Securities and NSDL c) Online SBI and Master securities ltd d) SBI Caps securities limited 3.A depository is an organization which holds a) loan documents in electronic form d) gold certificates in electronic form

b) cash

c) securities in an electronic form

4. A DP i.e depository participant is an entity which a) acts as a agent of the bank and registered under companies act b) which acts as a agent of the Depository and is registered as such with SEBI c) which acts as a agent of the RBI and is registered under FEMA d) which acts as agent for financing and registered as such with SEBI 5. At present the 2 depositories are a) Integereated depository services limited and Reliance depository services limited b) Future depository services limited and Reliance depository services limited c) Combined depository services limited and Active depository services limited d) National securities depository limited and Central depository services limited 6.Maximum no of demat accounts that an investor can open with a DP is a)unlimited

b) 1

c)2

d)5

7.Along with proof of address it is mandatory to give -----for opening a demat a/c a) mobile number b) Pan card with photograph c) asset statement d) Passport 459

STATE BANK LEARNING CENTER, PANCHKULA 8. Minimum balance of securities to be kept in demat a/c is a) 5

b) 3

c) Nil

d)1

9. The a/c opened by DP is given a number BO ID which stands for a) Beneficary owner identification number b) bilateral ownership indentity number c) Balance outstanding indentity number d)Benefits outstanding identification number 10. One of the following is not true about Dmat a/c a) In case of a joint a/c it cannot be operated on ’either or survivor ’basis as a bank a/c b) It cannot be operated on Power of attorney basis c) Names cannot be added or deleted in a demat a/c d) Securities can be transferred to another account with another DP maintained in the same pattern 11. For delivery of shares an investor is given a DIS booklet where DIS stands for a) Demand instruction slip c) Delivery instruction slip

b) dedicated investment slip d) dated investment slip

12. One of the following is not true in respect of DIS a) If demat a/c is in joint name DIS can be signed by any of the account holders b) DIS of another person should not be used as it will not be accepted c) It should specify the BO/client ID of the target a/c d) In case of exhaustion of DIS slips they can also be issued across counter to the investor for immediate use. 13. For doing DP related work bank has set up a special cell which is ---a) LCPC c) DPCPC

b) CPC d) DAC

14. ez instructions are meant to provide a) standing instructions to branches for transfer of funds b) instructions for issue of draft through onlineSBI c) online instructions for transfer of a/c d) for issue of delivery instructions and pledge instructions through onlineSBI 460


15. To convert shares in physical form to electronic form ,investor has to fill -----type of form a) CDF

b) DRF

c)DTF

d)CRF

16. DRF stands for a) Dealing request form c) Data request form

b) Duplicate request form d) Demat request form

17. When the names on the physical certificate and in demat a/c are the same but the sequence is different, then while applying for dematerialization the investor has to submit---- form a) Transposition cum demat form c) transition cum demat form

b) transfer cum demat form d) trading cum demat form

18.

An investor can do any of the following in respect of his demat a/c except

19.

a) Freeze his a/c b) change signature in his a/c c) convert shares in electronic form into physical form d) deposit all his securities whether in single or different names in a/c in single name only ASBA facility through SBI online refers to a) A simple online application for IPOs b) An application where only a lien for the given amount is created in the account.Hence the customer continues to earn interest and his account will be debited only on allotment of the shares. c) None of the above KEY D mat 1 b 9 a 17 a

2 d 10 b 18 d

3 c 11 c 19 b

4 b 12 a

5 d 13 c

6 a 14 d

7 b 15 b

8 c 16 d

461

STATE BANK LEARNING CENTER, PANCHKULA RTGS 1.RTGS stands

NEFT

GRPYT

for

a) Real trade gross settlement c) Real transaction gross settlement

b) Real time gross settlement d) Real track gross settlement

2.One of the following is not true about RTGS a) It is electronic transfer between a/cs in different banks b) It is made secure with digital signature and public key infrastructure for encryption c) It is maintained and monitored by SBI d) Interbank fund transfer is online and realtime 3.Which of the following is true i) R-41 transaction type is meant for customer to customer transaction ii) R-42 transaction type is meant for interbank transactions only i) is true d)neither i) nor ii) is true

b) only ii) is true

c) both i) and ii) are true

4.Which of the following is true i) Minimum amount that can be remitted through RTGS in case of R41 transaction is Rs2.00lacs ii) Minimum amount that can be remitted through RTGS in case of R42 transaction is Re2.00 only i) is true b) only ii) is true d) both i) and ii) are true

c) neither i) nor ii) is true

5. IFSC in respect of RTGS/NEFT stands for a) Indian financial system code b) international financial system code c) Indian financial sevices code d) international financial services code 6. UTR number refers to a) Universal transaction reference c) Universal transfer reach

b) Unique transfer reference d) Unique transaction reference

7.Every RTGS message is assigned a UTR no comprising of ------characters a) 17 c) 16

b) 11 d) 15 462

STATE BANK LEARNING CENTER, PANCHKULA 8. DAU, maintained at Payment systems group Global IT centre CBD Belapur, refers to a) Dedicated accounting unit c) Distance account unit

b) Dealer account unit d) dependable accounting unit

9. NEFT stands for a) National Engineered financial transaction c) National electronic fund transfer

b) New electronic financial transaction d) New electrical fund transfer

10. One of the following is not true about the features of NEFT a) Remittance can be in rounded figures only b) It operates on deferred net settlement basis where settlement is done in batches c) There is no stipulation of minimum or maximum amount to be sent through NEFT d) It can be used for only Indian rupee remittances among participating banks in the country. 11.IFSC code has ------no of characters a) 10

b)11

c) 16

d)15

12.Maximum amount that can be sent through RTGS and NEFT is a)Rs5.00lacs

b) Rs10.00lacs

c)no limit

d)Rs15.00lacs

KEY RTGS 1 b 9 c

2 c 10 a

3 c 11 b

NEFT

GRPYT

4 d 12 c

5 a

6 d

7 c

8 a

463

STATE BANK LEARNING CENTER, PANCHKULA INFORMATION SECURITY ASSIGNMENT - 1 1.

Who is responsible for security of Desktop/Laptop/Server a) System Administrator b) User c) of Department d) Security Officer Head

2.

If an user requires any change in hardware or software settings whom he/she should contact a) IT Head b) Head of Department c) System Administrato d) Supplier of HW/SW

3.

If an user wants to connect modem to his/her machine to access external network, whom shall he she approach for approval a) Head of Department b) System Administrator c) IT-Networking department d) Information Security Department

4.

To prevent unauthorized access while desktop is unattended, which measure is most suitable a) Shutdown the desktop b) Lock the keyboard/mouse c) Enable the screensaver with password d) Power off the monitor

5.

What an user should do when auto virus scan is affecting system performance a) Contact the System Administrator b) Stop/Disable the virus scan c) Call the HW/SW vendor d) Remove the antivirus from the system

6.

How can a user protect sensitive data on laptop in the event of loss of laptop a) By creating hidden files/folders b) By enabling Boot level power-on password c) By enabling screensaver d) By using encryption 464


7.

In the event of loss of laptop whom should be contacted immediately a) Police station b) Controller & Information Security Department c) Insurance Company d) Bank’s Security Officer

8.

An user should share password of his desktop with whom a) Controller b) System administrator c) Colleagues d) None

9.

A good password is a) Name/short form of name/initials b) Names of family/friends/colleagues/institution c) Combination of alphabets and numbers d) Combination of alphabets, numbers and special characters

10.

Which is a good practice a) Changing passwords frequently b) Keeping a written password somewhere c) Entering password when colleague is watching d) Keeping simple words as passwords

11.

If Internet is misused from an user’s desktop, who is responsible a) The person who has misused b) The user whom the desktop belonged to c) The department where the desktop is located d) IT-Networking department

12.

Which one is not suggested while enabling a browser 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

465


If an users storage space is full in his/her mailbox, which one is not recommended a) Delete old mails b) Download old mails in the machine c) Open a new mail account d) Request for increase in mailbox storage

14.

A site address which starts with -------- is more secure a)https:// b) https:// c)htpps:// d)https://

15.

Which of the undermentioned is a good practice to prevent revelation of sensitive information a) Reading confidential documents in public places b) Working on laptops in public places c) Not answering to queries over phone to unverified persons d) Providing information to vendors/suppliers

16.

Who is supposed to be responsible for application security in all activities related to design, development, deployment and support of an application a) Development team c) Steering Committee

17.

b) Information Security Department d) Application owner

Application should ensure that all transactions with financial implication should have a) One person as the requestor and approver b) Separate requestor and approver c) Approval of Systems and Procedure Dept. d) Approval of Information Security Department

18.

Application should have the provision for allocating access rights based on the principle of a) First come first serve c) Default

19.

b) Maker-checker d) Least privilege

An application need not display which information, on completion of a successful logon a) User-Id b) Date and time of the previous successful logon c) Details of any unsuccessful login attempts d) Name of the application 466


20.

Who is responsible for selection of encryption technology for Data security a) Head of department b) Head of IT department c) Information Security Department (ISD) d) Application owner in consultation with ISD

21.

Internet access should be provided only for users a) To send / receive mails b) With business needs c) To browse various sites d) To download files/data

22.

The account and password for Internet access will be communicated to end user by a) Head of department b) IT-Networking department c) Information Security Department d) System Administrator

23.

Internet connection is enabled on desktop, which is not connected to the LAN in Branch. How should the data be transferred between the desktop and LAN a) By connecting the desktop to the LAN b) By using a modem for dial-up connection to the LAN c) By using removable media like Floppy/CD d) None of the above

24.

Who is authorized to block ports through firewall a) IT-Networking dept. as advised by ISD b) ISD c) Service Provider d) System Administrator

25.

Which device should be installed to monitor the traffic from external networks a) Switch b) Router c) Firewall d) Intrusion Detection System

467


ANSWERS INFORMATION SECURITY ASSIGNMENT - 1 Q. Ans. Q. Ans. Q. Ans.

1 b 11 b 21 b

2 c 12 b 22 b

3 c 13 c 23 c

4 c 14 a 24 a

5 a 15 c 25 d

6 d 16 d

7 b 17 b

8 d 18 d

9 d 19 d

10 a 20 d

468


INFORMATION SECURITY ASSIGNMENT-2 1.

What are the three most important things you can do to secure desktop PCs? a) Turn on Automatic Updates b) Turn on Windows Firewall c) Install antivirus software d) Remove the hard drive f) a, c, and d g) a, b, and c h) b, c, and d i) a, b, and d

2.

Which of the following is an example of a strong password? a) Password b) J*p2le04>F c) Your real name, user name, or company name

3.

True or false: If you have a firewall on your network you don't need to turn on Windows Firewall. a) True b) False

4.

How can you prevent intruders from accessing your wireless network? a) Encrypt network traffic with WPA or WEP b) Restrict access to trusted MAC addresses c) Both

5.

True of false: If you set your antivirus software to auto-update then you don't need Windows Automatic Updates. a) True b) False

6.

True or false: Small businesses are not targets for hackers. a) True b) False

469


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

8.

What product can be used to update all PCs on your network? a) Software Update Services b) Internet Information Server c) Bluetooth Networking d) Microsoft Baseline Security Analyzer

9.

What method(s) can be used to protect sensitive data from prying eyes? a) Passwords b) File permissions c) Encryption d) All of the above

10.

How often should you perform an incremental backup? a) Daily c) Weekly

11.

b) Every other day d) Monthly

The way I operate my computer affects other people. a) False: Nothing I do on my computer matters to anyone b) True: My computer may disrupt services, spread viruses, or be used to perform a computer crime.

12.

What are the possible consequences of someone breaking into my computer? a) I may have files deleted from my computer b) I may have personal communications exposed c) I may have my network connection cut off d) My monitor may shatter e) My computer may be used to commit a crime f) My computer may be used to adversely affect the operation of my neighbors' computers g) All of the above, h) a, b, c, e, and f i) a, b, d, and f

470


13.

You just got a brand new computer and it has anti-virus software installed. Is it safe to use on the Internet? a) Sure. They wouldn't sell me something unsafe. b) No. I need to make sure both my anti-virus software and operating software are up to date.

14.

Why might someone break into my computer even though I have nothing of value on it? a) Because someone doesn't like me b) To use it to perform a crime c) Random vandalism d) For fun e) To use it to distribute pornography, music, videos, and software. f) All of the above

15.

Are you free to do whatever you want with your network-connected computer? a) Yes, It’s my personal computer and I can do what I please. b) No. I have to be a responsible member of the networked community and am bound by the George Mason Responsible Use of Computing Policy. c) No. I have to be a responsible member of the networked community, which includes being aware of the Wireless Network Policy. d) Both b and c.

16.

Which of the following are strong passwords: a) Administrator c) c0mputer e) $ecurity g) My dog's name

17.

b) Bob d) %4Btv f) $jelF2bb

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

471


Which is the best way to protect the sensitive data in your computer when you go out for lunch? a) Turn the monitor off b) Activate the screen saver c) Lock your computer with password d) Close all programs

19.

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

20.

Which of the following behaviors are considered inappropriate use? a) Sending email messages to harass or intimidate people b) Sharing passwords c) Sharing or using unlicensed, copyrighted software or multimedia outside their fair use provisions d) Trying to infect people with viruses or scanning computers you don't own e) Eavesdropping on others' activities by examining their computers or by using technology to access third-party communications f) Operating a computer with out of date operating software g) All of the above

21.

When connecting your computer to wireless network you should: a) Feel secure enough to send sensitive and confidential data, such as your social security number, credit card information, password(s), or private conversations. b) Lose sleep wondering whether using wireless access will allow strangers to login to your computer and the data stored on your hard drive. c) Enjoy the freedom of connecting to the Internet without hassling with cables and/or concern that the service provider will be billing your account for this special service d) Encrypt the information that you are transmitting over the network to protect your data from being exposed to hackers. e) Both c and d.

472


ANSWERS INFORMATION SECURITY ASSIGNMENT - 2 Q. Ans. Q. Ans. Q. Ans.

1 f 8 a 15 d

2 b 9 c 16 f

3 b 10 a 17 a

4 c 11 b 18 c

5 b 12 h 19 a

6 b 13 b 20 g

7 a 14 f 21 e

473

STATE BANK LEARNING CENTER, PANCHKULA INFORMATION SECURITY ASSIGNMENT-3

SAY TRUE OR FALSE 1. Antivirus programs that do a scheduled scan once a day provide adequate protection from viruses. 2. If you don't open an infected email attachment and don't browse unknown websites, you'll never get a virus. 3. A software firewall provides adequate protection for a cable or DSL line. 4. New systems are generally up to date and reasonably safe to connect immediately to the Internet. 5. It's ok to leave your wireless network unencrypted as long as you have firewalls on all your computers. 6. There are many viruses that can't be cleaned by even the best antivirus programs. 7. You can always avoid fake websites by typing the address in (avoiding email links), and identify a secure connection by the "lock" symbol in your browser status bar. 8. Most cookies do not contain any personal information and are not nearly the privacy risk that many people believe. 9. Deleting files and then emptying the recycle bin makes it impossible for someone to recover the information in those files. 10.Teens suffer much higher rates of identity theft than adults. 11.Adware and Spyware not only compromise your privacy, they can also severely reduce the performance of your computer and cause numerous other problems. 12.Chat rooms and the Internet have become the primary way that sexual predators find victims today.

474

STATE BANK LEARNING CENTER, PANCHKULA KEYS TO INFORMATION SECURITY ASSIGNMENT-3 1. FALSE. You also need real time scanning: a critical feature that can prevent a major infection (and one missing from many free antivirus programs). 2. FALSE.. A Vulnerable system can become infected even if you don't open attachments or browse the web. 3. FALSE. Cable/DSL users should not rely on software firewalls. But the reasons are not technological! 4. FALSE. New systems are almost always vulnerable and typically need major updates before they should be connected to the Internet. 5. FALSE. Your router is at threat and anybody can do anything to it.. 6. FALSE. Viruses can be virtually impossible to clean, and the damage irreperable short of reformatting and reinstalling your system software. 7. FALSE. Typing an address in manually (avoiding links in email messages) and using the lock symbol to identify a secure connection works - but only on a clean system. These cannot be trusted on a system infected by a virus or spyware. 8. FALSE. Cookies rarely contain personal information and are much less scary than people think. 9. FALSE. Deleting files and emptying the recycle bin does not really delete files. 10.FALSE FTC surveys suggest about 5% of adults suffer some form of identity theft each year. I've found about 30% of teens have suffered identity theft. 11.FALSE. Adware and spyware may severly reduce the performance of your computer. 12.FALSE Assaults due to meetings in chatrooms are relatively uncommon and represent a small percentage of attacks against young people.

475


1.

BPR ASSIGNMENT The alternate delivery channels as proposed under BPR are …. a) ATMs, Call Centres, Internet Banking, Phone Banking & Home Banking b) ATMs, Internet Banking, Phone Banking & Home Banking c) ATMs, Internet Banking, Phone Banking e) ATMs, Credit cards, Internet Banking, Phone Banking & Home Banking

2.

In order to face the competition and come up to the customers’ expections BPR has been introduced. In fact BPR stands for : a) Basic Procedural Re-adjustment b) Business Process Re-engineering c) Best Possible Re-structuring d) Behaviour Processes redefined

3.

The radical changes being introduced under BPR are expected to result in significant improvements on multiple fronts. The Core Process Redesign under BPR would lead to : a) Process of Redesigning bank’s logo b) Simplified processes for customer and staff c) Redesign the process of promotion d) a & b above

4.

BPR has been introduced because of a) Environment has changed b) Customer Expectations c) Competitive Pressure d) Processes have remained the same over the years e) All of the above

5.

Keeping in view the environmental changes, customer expectations, new technologies and obsolete processes the key objectives of the BPR are a) Enhanced customer service levels by shortest waiting times, shorter process times and officering wider range of channels to choose from b) Tangible improvement in bottom line through increase in revenues and through new sales units. c) Reduction in cost by improved processes d) Reduce transaction processing errors and customer complaints e) All of the above

6.

Introduction of alternate channels will lead to i) reduction in transaction costs ii)Availability to customers 24X7 476


a) i) only 7.

b) ii) only

c) both i) and ii)

d) neither i) nor ii)

A large number of radical changes are being incorporated under BPR which will lead to tangible improvements. One of the key improvements under BPR will be : a) Greater customer convenience & less pressure on the branches b) Providing relief to the staff due to shortage of staff c) It will be accompanied by Police Escort d) No escort is required

8.

Out of the seven key initiatives being launched under BPR one of the key initiatives is Database marketing, which means: a) Compilation of data about marketing strategies b) Effective targeting of potentially rewarding customers c) Collation of data about other banks d) None of the above

9.

10.

Full form of SSB in Core SSB model of branch is a) Self servicing branch b) Standard and service branch c) Sales and service branch d) Sale and Super branch One of the following is not true about the functions performed by core SSB a) b) c) d)

11.

It accepts cheques for deposit It grants loans against fixed deposits It conducts pre-sanction in case of business loans It keeps articles in safe custody.

A large number of non customer facing actilvities are being simplified and moved out the branches. One of the Non customer facing activities being moved out of the branches to the extent of 95% is : a) Savings Account opening b) Cheque clearing c) Loan processing d) Draft Issuance

12.

One of the key changes launched under BPR are central processing cells. The objectives for creation of Central Processing Cells is a) Skill pooling c) Automation

b) Standardization of process d) All of the above 477


13.

Two other variants of a Core SSB branch under redesigned branches are a) Core SSB with Mass module and core SSB with special module b) Core SSB with Mass module and core SSB with affluent module c) Core SSB with C&I module and core SSB with special module d) Core SSB with Affluent module and core SSB with SME module

14.

One of the following is not a key principle in branch redesigning under BPR a)Clear communication of role b)increased focus on sales c)Increasing working hours d) Non customer facing activities migrated out of core

15.

Functions related to a/c opening carried out at Liability CPC does not include a) Scanning of signatures b) acceptance of cash c) completion of remaining a/c opening formalities d) printing and dispatch of welcome letters to customers

16.

As per BPR, Document Archival Centres have been created which will function as a) Centralised Document Execution Centre b) Centralised Document Printing Centre c) Centralised Record Maintance cell d) Centralised Document Centre for closed accounts

17.

The Key features of BPR are a)Branch redesign c)LCPC

18.

b)Alternate channels d)All of the above

Under BPR, relationship managers have been provided for a) Personal banking only b) Medium enterprises only c) both Personal banking and medium enterprises d) neither Personal banking nor medium enterprises

19.

Under BPR Centralised processing cells are being established at various centers. Accordingly, it has been decided that National Cash Monitoring Cells will be established at …….

478

STATE BANK LEARNING CENTER, PANCHKULA a) Mumbai b) All the metros c) New Delhi d) Nagpur 20.

In SMECC work flow it is not possible to

21.

a) send back an application for correction b) do analysis of balance sheet c) reject a loan application d) tick documents from Checklist submitted In the cases of branches linked to Centralised Clearing processing cells The instruments drawn on the branches are a) Paid at the branches b) paid at CCPCs c) can be either a or b 22. The 3 slits in the Drop box for deposit of instruments are color coded for easy identification.The different colours are a) Red for instruments to be paid at the branches b) Blue for Local clearing cheques c) Yellow for outstation instruments d) all of the above

23. The Grahak Mitra has been introduced with the following objective a) He will provide first level assistance to customers visiting the Branch. b)He will provide• basic product information and brochures to customers coming for a general enquiry. c) He will help the customers not well-versed with alternate channels to use them. d) He will guide the customers with complex transaction needs to proper officer/counter e) All of the above 24 The purpose of setting up of CAC(Currency administration cell) is : a) To improve efficiency levels with respect to reporting and interactions with RBI. b) Arranging for transportation of cash with outsourced vendors or within SBI. c) To relieve the branch managers, cash officers and cashiers at the branch from time consuming remittance related activities. d) All of the above

479


ANSWERS BPR ASSIGNMENT

Q. Ans. Q. Ans. Q. Ans. Q. Ans.

1 a 8 b 15 b 22 d

2 b 9 c 16 c 23 e

3 b 10 c 17 d 24 d

4 e 11 b 18 c

5 e 12 d 19 a

6 c 13 d 20 b

7 a 14 c 21 B

480


MUTUAL FUNDS ASSIGNMENT- 1 1. SBI Fund Management Pvt. Ltd. is a joint venture of SBI & world leading Fund Management Company SGAM (Societe Generale Asset Management) in the ratio of ____ % and ____%. a) 50 , 50 b) 40 , 60 c) 30 , 70 d) 63 , 37 2. All Mutual Funds must be registered with ______ who regulates Mutual Funds business in India. a) RBI c) AMFI

b) MF Regulatory Authority d) SEBI

3. ________sets ethical, commercial and professional standards for Mutual Funds. a) RBI zc) AMFI

b) SBI d) SEBI

4. Which of the following is not one of the categories of Mutual Fund ? a) Liquid Fund c) Multi Level Fund e) Sectoral Fund

b) Debt Fund d) Equity Fund f) Balanced Fund

5. In an close ended Fund, Investor cannot ______units through Mutual Fund as these are listed in stock exchange. a) book c) further invest

b) buy/redeem d) choose

6. In an open ended Fund, Investor can sale/purchase to/from the Mutual Fund at all times at a price based on ___________ . a) Market price c) Offer price

b) declared price d) Net Asset Value(NAV)

7. In the context of Mutual funds, a /an _______document is a prospectus in which complete details of new schemes are declared. a) issue c) public issue

b) offer d) Initial issue

481

STATE BANK LEARNING CENTER, PANCHKULA 8. Net Asset Value of a mutual fund represents: a) b) c) d)

Assets/ Total No. of units of the Fund Market value of securities / Total No. of units of the Fund Market value of Assets – Liabilities (Market value of Assets – Liabilities)/ Total No. of units of the Fund

9. The SBI Magnum Contra Fund has given a return of ……..% since it’s inception . a) 16.65 c) 25.35 10. The asset .

b) 36.87 d) 26.87 allocation in SBI Magnum Contra Fund is ……….% in large caps

a) 40-50 c) 30-40

b) 50-60 d) 65-70

11. In SBI LIFE Maha Anand medical examination is compulsory for a person of …… years age . a) 30 b) not requried c) 40 d) 60 12. Which of the following fund does not fall under the category Liquid & Short term a) Magnum Insta cash fund, c) Magnum Institutional Income Fund

b) Magnum NRI d) Magnum Mid Cap Fund

13. Which of the following fund does not fall under the category of Debt Fund? a) Magnum Income Fund c) Magnum Monthly Income

b) Magnum Gilt Fund d) Magnum Balanced Fund

14. Which of the following fund does not fall under the category of Equity ? a) Magnum Index Fund c) Magnum Tax Gain Scheme

b) Magnum Multiplier Plus d) Magnum Income Plus

15. Redemption/ Sale of mutual fund units would attract a Long term capital Gains Tax of ……… % if they are held for a period of more than one year. a) 10, c) no tax

b) 20 d) 15

482


16. Magnum Gilt Fund makes its investments in ………….. securities a) Large caps c) mid caps

b) blue chip companies d)Govt securities issued by central/ state govts.

17. The Bench Mark for comparing the performance of Magnum Gilt Funds is …… a) BSE SENSEX b) NIFTY c) MID CAP INDEX d) I- Sec , Li-BEX INDEX

Key to Mutual Funds Assignment - 1 Q Ans Q Ans

1 d 10 d

2 d 11 b

3 c 12 d

4 c 13 d

5 b 14 d

6 d 15 c

7 b 16 d

8 d 17 d

9 d

483

STATE BANK LEARNING CENTER, PANCHKULA MUTUAL FUNDS ASSIGNMENT- 2 1.

Which of the following is not the object of AMFI? a. b. c. d.

2.

Which of the following is not a criteria for a sponsor of a Mutual Fund? a. b. c.

3.

Trust Company

b. d.

Investment company None of the above

The AMC The mutual fund/ trust

b. d.

Directors of the AMC The trustees

40 30

b. d.

15 60

Diversified debt funds are most affected by: a. c.

8.

Annual / half-yearly report Newspapers

If a security is thinly traded, it implies that the security has not traded on any stock exchange for the last _____ days. a. c.

7.

b. d.

Which of the following can an existing mutual fund investor sue? a. c.

6.

Offer document NAV

In India, a mutual fund is constituted as: a. c.

5.

Networth to be more than capital investment Sponsor should contribute 40% of net assets Sponsor should ensure that 20% of fund’s assets to be invested in sponsor’s company

The health of a Mutual Fund can be known from: a. c.

4.

To promote interest of mutual funds To create ethical practices amongst mutual funds To regulate norms governing mutual funds To increase awareness of mutual fund

Reinvestment risk Interest rate risk

b. d.

Liquidity risk Default risk

The maximum load that can be charged by the Asset Management Company for paying initial issue expenses is: a. 7% b. 6% c. 5% d. 8% 484


9.

SEBI regulations for mutual funds came into force in: a. c.

10.

1993 1996

b. d.

1987 1998

Which class of investors is not allowed to invest in Indian mutual fund? a. c.

Foreign national NRI

b. d.

FII Indian resident

11. Mutual Fund Investors can address their complaint except to: a. c. 12.

Consumer court AMFI

b. d.

SEBI Sponsor

Which of the following statements is false: a. b. c. d.

Gilt funds have the least credit risk among various types of funds Gilt funds NAV will not fluctuate irrespective of interest rate movements Gilt funds would not face the risk of default unless the Govt. defaults on its payments Gilt funds are ideal for investors who look for highest safety of principal amount

13. Mutual fund can borrow: a. b. c. d.

In order to meet redemption units/dividends or interest payouts For a maximum duration of 6 months Upto a maximum of 20% of the net assets All of the above

14. Initial issue expenses for an open end fund can be amortised over a period of : a. 10 years based of WNA b. 4 years c. 5 years d. 6 years 15. Which was the first diversified equity fund in India? a. c.

Mastergain 92 Mastershare

b. d.

MEP 91 None of the above

16. Which was the first Indian offshore fund? a. c.

India growth fund. India infrastructure fund

b. d.

India fund none of the above

485

STATE BANK LEARNING CENTER, PANCHKULA 17. Private sector funds were granted permission to enter the mutual fund industry in a. c.

1992 1988

b. d.

1993 1995

18. In the context of a mutual fund, a high portfolio turnover means: a. b. c. d.

the fund is very active in the market transaction costs are high a high risk is involved as per the investment objectives all of the above

19. The Mutual Fund Offer document as per trust deed is issued by: a. AMC b. Sponsors c. AMC in the name of the trustees d. Trustees 20. The maximum limit of inter-scheme investments by a fund is: a. 5% of the NAV of the transferring scheme b. 15% of the NAV of the receiving scheme c. 5% of the NAV of all schemes of the fund d. 15% of the NAV of all schemes of the fund 21. The first non-UTI mutual fund was: a. SBI MF c. Canbank MF

b. d.

LIC MF Indian Bank MF

22. Under SEBI regulation, a sponsor of mutual fund a) b) c) d)

Must contribute at least 40 % of the net worth of the assets management company, Must posses a sound track record of over 5 years, Must contribute at least 51 % of the net worth of the asset management company, Both (a) & (b)

23. For evaluating funds, the preferred benchmark would be the: a) c)

BSE Sensex BSE 200

b) d)

S&P CNX Nifty S&P CNX Sectoral Indices

24. Mutual funds can be broadly typecast on the basis of nature of investment into: a) b) c) d)

Equity, bond, & money market funds, Equity, bond, & load funds, Equity, load, & tax-exempt funds, Equity, open-ended, & closed-ended funds. 486


Key to Mutual Funds Assignment - 2 Q Ans Q Ans

1 c 13 d

2 c 14 c

3 B 15 C

4 a 16 b

5 d 17 b

6 c 18 d

7 c 19 a

8 b 20 c

9 c 21 a

10 a 22 d

11 a 23 d

12 b 24 a

487

STATE BANK LEARNING CENTER, PANCHKULA MUTUAL FUNDS ASSIGNMENT- 3 1.

A mutual fund’s NAV is not affected by: a) b) c) d)

2.

Price of the unit quoted in the exchange Valuation of fund’s investments Sale of new units Redemption of unit

The mutual fund trust is governed by a) b) c) d)

3.

Which of the following is of no relevance in evaluating a mutual fund's performance a) b) c) d)

4.

Less researched & speculative shares, Shares of blue chip companies that are recognized as market leaders, Shares of companies that produce defense-related equipments, Technology stocks.

Repurchase price of a mutual fund unit a) b) c) d)

6.

The performance of the stock market as a whole The performance of other mutual funds The returns given by other comparable financial products The change in wholesale price index

Aggressive growth funds invest in a) b) c) d)

5.

India Trust Act only, Indian Trust Act & sometimes also by companies Act 1956, Companies Act only, Companies Act & sometimes Indian Trust Act.

Should be higher then 93 % of NAV in a closed-ended fund Should be higher than 95 % of NAV in a closed-ended fund Can be 96 % of NAV Can be 90 % of NAV

In the growth option offered by mutual funds, the number of units held by an investor increases because of : a) b) c) d)

Growth in net asset value i.e. capital appreciation Reinvestment of dividend which is like compounding Interest received on the fund's assets None of the above

488


7.

Index fund is expected to carry which of these risks? a) c)

8.

b) d)

Sector specific risk, Overall market risk.

A security is a “non-traded” security if it is not traded in the stock exchange for a) b) c) d)

9.

Default risk, Share specific risk,

45 days prior to the date of valuation 60 days prior to the date of valuation 30 days prior to the date of valuation 06 months prior to the date of valuation

Assured return schemes: a) b) c) d)

Are equity funds, Do not carry any risk, Are funds where minimum returns are guaranteed by the sponsor, Are schemes where maximum returns are assured

10. Which of the following is right? A mutual fund may not: a) Invest in other mutual fund b) Invest in mutual fund schemes floated by the same asset management company c) Invest more than 5 % of NAV of the scheme in unrated debt instruments d) Invest in unlisted shares more than 10 % of NAV in a closed-ended fund 11. Which of the following is true? a) b) c) d)

Sector fund is less risky than index fund Index fund is more risky than underlying index Balanced fund is more risky than gilt fund Money market fund is more risky than balanced fund

12. Turnover rates would be most relevant to analyze the performance of : a) Equity funds c) Debt funds

b) d)

Growth funds Value funds

489

STATE BANK LEARNING CENTER, PANCHKULA 13. Because of the entry/exit loads charged by the MFs, the return on investment earned by the unit-holders: a) b) c) d)

Increases Decreases Is unaffected Sometimes increases, sometimes decreases

14. An asset management company & its directors must ensure that the investment of fund is in accordance with a) b) c) d)

Trust deed SEBI Regulations SEBI Regulations & the trust deed The need to furnish maximum returns of the unit-holders

15. The rate of interest paid by a company on debentures issued by it depends on: a) The stock market situation c) The company's credit rating

b) d)

SEBI guidelines The amount of money being raised

16. A high turnover rate for a fund indicates: a) High transaction costs c) High returns to the investor

b) d)

Greater efficiency A rising market

17. A sector fund is a: a) Low risk fund c) High risk fund

b) d)

Moderate risk fund Low-to-moderate risk fund

18. Which of the following transaction costs are not quantified in the offer document a) Brokerage commissions c) Custodian’s fees

b) d)

Dealer spreads Registrar’s fees

19. Unit Trust Of India is a special mutual fund because a) It was set up before SEBI was established b) It was set up under an act of a parliament & therefore enjoys special status c) It is a public sector financial institution d) It is owned by RBI, which is not under SEBI jurisdiction. 20. As per SEBI, mutual funds can borrow for short term to the extent of a) Total net assets c) 25% of net assets

b) d)

50% of net assets 20% of net assets 490


21. A bond with a coupon rate of 9 % when interest rates for similar maturities are 11 % will sell a) b) c) d)

Above par Below par At par At a price which is not related to interest rates for similar maturities

22. Dated securities are a) b) c) d)

Bond issued by corporate with a specific date for redemption, Treasury bills with a specific date for redemption, Government paper with maturities longer than one year, Securities, which have no, risk whatsoever.

Key to Mutual Funds Assignment- 3

Q Ans Q Ans

1 a 12 a

2 b 13 b

3 d 14 c

4 a 15 c

5 c 16 a

6 b 17 c

7 d 18 b

8 b 19 b

9 c 20 d

10 d 21 b

11 c 22 c

491


SBI LIFE AND GENERAL INSURANCE 1) SBI General Insurance is a joint venture with which of the following? a) IAG Australia c) Sosciete General Asset Management

b) Cardiff S A d) None

2) SBI Life is a joint venture with which of the following? a) IAG Australia c) Sosciete General Asset Management 3)

b) Cardiff S A d) None

What is %... of the share of SBI in the joint venture with Cardif S A..? a) 74 c) 50

4)

b) 76 d)51

A person professionally trained in the mathematical and technical aspects of Life Insurance, Pensions and related fields is called as a ….. a) Actuary c) CIF

b) Fund Manager d) Associate

5) The Key Man Insurance Policy is owned by and payable to …. a) The employee c) Both jointly 6)

b) The employer d) Nominee

What is meant by mortality in an insurance policy? a) The probability of disability of a life or a group of lives b) The probability of death of a life or a group of lives c) The probability of death and disability of a life or a group of lives d) The probability of death or disability of a life or a group of lives

7)

What is meant by morbidity in an insurance policy? a) The probability of disability of a life or a group of lives b) The probability of death of a life or a group of lives c) The probability of death and disability of a life or a group of lives d) The probability of death or disability of a life or a group of lives

492

STATE BANK LEARNING CENTER, PANCHKULA 8) In which of the following policies, no surplus earnings are distributed by the co. to the policy holder &the premium is as closely as possible to the cost of insurance? a) Non participating policies c) Single premium policy

b) Salary saving insurance d) Term insurance

9) Which of the following policies provide life protection only for a certain period of time without any returns if the insured survives the term? a) Non participating policies c) Single premium policy

b) Participating life insurance d) Term insurance

10) Which of the following policies may be kept in force for a person”s whole life and which pays a benefit upon his death whenever that be? a) Endowment c) Whole life

b) Annuity d) Money Back

11) Which is the new ULIP policy of SBI life, with a minimum annual Premium of Rs. 1.50 Lacs & minimum single premium of Rs. 2.00 Lacs? a) Smart Elite c) Unit plus Super

b) Smart Performer d) Smart Scholar

12) Which is the new ULIP policy of SBI life, with the twin benefits, higher than the highest of the daily NAV Guarantee and the prospect of the market upside? .

a) Smart Elite c) Unit plus Super

b) Smart Performer d) Smart Scholar

13) What are the minimum & maximum ages at entry in “Unit plus Super? a) 18 &65 years c) 19 &65years

b) d)

7 &65 years 20 &65 years

14) What is the maximum age at maturity in “Unit Plus Super’ ? a)65 years c)55 years


15) What is the maximum age at maturity in “Smart Elite? a) 65 years c) 75 years

b) 60 years d) 55 years 493


16)

What is the maximum age at maturity in “Smart Performer? a) 65 years c) 55 years


17)

Which group policy of SBI Life is meant for covering Housing loans, Tractor loans& Personal loans? a) Dhana Raksha Plus b) Dhana Rasi c) Swarna Ganga d) Group Swadhan

loans, Vehicle

18)

Which is the SBI Life’s traditional non-participating pure term plan, with a minimum sum assured of Rs. 25.00 Lac? a) Smart shield b) Saral shield c) Saral life d) Smart Elite

19)

Which is the SBI Life’s traditional non-participating pure term plan, with minimum & maximum sum assured of Rs. 7.50 Lac& 24.00 Lac? a) Smart shield b) Saral shield c) Saral life d) Smart Elite

20)

In which plan, part of the sum assured is paid to the policy holder at regular intervals? a) Joint life Annuity b) Annuity c) Whole life d) Money back Answers SBI LIFE AND GENERAL INSURANCE

Q. Ans. Q. Ans

1 A 11 A

2 C 12 C

3 A 13 C

4 A 14 D

5 C 15 A

6 B 16 D

7 A 17 A

8 A 18 A

9 D 19 C

10 B 20 D

494

STATE BANK LEARNING CENTER, PANCHKULA AWARENESS OF BANKING FINANCE & ECONOMY ASSIGNMENT - 1 1.

In which denomination of Currency notes RBI has proposed to issue polymer notes? a) c)

2.

Rs.10/Rs.1/-

b) d)

Rs.5/Rs.2/-

-------------has been awarded the Best Bank of 2010 by the Business India a) c)

Bank of Baroda SBI

b) d)

ICICI BANK HDFC BANK

3.

The Present National Security Adviser to the govt of India is a) Shri K.R Narayanan b) Shri K.P S Gill c) Shri Shiv Shankar Menon d) None of the above

4.

As per the recommendation of the 13th Finance Commission, the States will be entitled to a share of ______% in Central Tax Revenue. a. c.

32 30.5

b. d.

31.5 29.5

5.

The tenure of the 13th Finance Commission is a. 2010-2015 b. 2011-2015 c. 2009-2014 d. 2008-2013

6.

The 13th Finance Commission is headed by a. Shri K.R Narayanan b. Shri Manmohan singh c. Shri Pranab Mukherjee d. Shri Vijay Kelkar

7.

BRIC economies refer to a. Brazil ,Russia ,India ,China c. Burma ,Russia ,India ,Chile

8.

b. d.

Burma ,Russia ,India ,China Brazil ,Russia ,Indonesia ,China

Government of India has allowed Foreign Direct investment in Insurance Sector upto : a. 39% b. 49% c. 59% d. 69%

495


Why is ‘Circuit breaker’ used in share market? a. b. c. d.

10.

What is the proportion of the total oil consumption imported by India? a. c.

11.

b. d.

London Geneva

New York Geneva

b. d.

London Berlin

New York Geneva

b. d.

London Washington,D.C.

Kualalumpur Seol

b. Tokyo d. Manila

Who is the present Chairman of SEBI ? a. c.

16.

New York Washington

The headquarter of ‘Asian Development Bank’ is situated at: a. c.

15.

70% 54%

Headquarters of International Bank for Reconstruction and Development (IBRD) is located at: a. c.

14.

b. d.

Headquarters of World Trade Organisation (WTO) is located at: a. c.

13.

80% 63%

The headquarters of International Monetary Fund is located at : a. c.

12.

To retain foreign investors in market. To check the illegal method used by companies to promote sale of their shares. To check heavy fluctuation in share market. To check the excessive sale of any one share.

Sh. G.N.Bajpai Sh. M. Damodaran

b. d.

Sh. Rajendra Panwar Sh. U.K Sinha

The headquarters of the European Central Bank (estd. 1998) is located at: ______. a. c.

Berlin London

b. d.

Lisbon Frankfurt

496


17.

Where is the National Board of Trade located? a. c.

18.

Ahemdabad None of the above.

Wall Street Journal Reuters Group plc.

b. d.

Press Trust of India Associated Press of America

Office of the Intellectual property Appellate Board is being established in India at: a. c.

20.

b. d.

Name the world’s largest provider of financial information: a. c.

19.

Indore Mumbai

New Delhi Chennai

b. d.

Mumbai Kolkata

b. d.

Sh. M O Mallya M.B.N. Rao

Who is the present Chairman of IBA? a. c.

Sh.Pratip Chaudhri Sh. M. Damodaran

21.

The The present Chairman of IBA belongs to a. SBI b. OBC c. ICICI Bank d. HDFC Bank

22.

Who among the following, is the Chairman of Cabinet Committee on Economic Affairs? a. c.

23.

b. d.

Sh.Manmohan Singh Sh. Montek Singh Ahluwalia

Who is the President of ‘World Bank’? a. c.

24.

Sh. Arjun Sen Gupta Sh. P. Chidambaram

James D. Wolfensohn Robert B. Zoellick

b. d.

Paul Wolfowitz Lee Sian Loo

The Managing Director of IMF who had to recently vacate office following allegations of impropriety was a. James D. Wolfensohn b. Paul Wolfowitz d. Domonique strauss Kahn c. Robert B. Zoellick

497


KEY TO AWARENESS OF BANKING FINANCE & ECONOMY ASSIGNMENT - 1

Q. Ans. Q. Ans

1 a 13 d

2 a 14 d

3 c 15 d

4 a 16 d

5 a 17 a

6 d 18 c

7 a 19 c

8 b 20 b

9 c 21 b

10 b 22 b

11 c 23 C

12 c 24 d

498


ASSIGNMENT - 2 1.

As per Budget proposals for the year 2011-12, the Income tax exemption limit has been raised from Rs 160000.00 to a) b) c) d)

2.

As per Budget proposals for the year 2011-12, the Income tax exemption limit for senior citizens has been raised to a) b) c) d)

3.

Rs 180000.00 Rs 250000.00 Rs 170000.00 Rs 190000.00

As per Budget proposals for the year 2011-12, the Income tax exemption limit for Senior citizens above 80 years is a) b) c) d)

4.

Rs 180000.00 Rs 200000.00 Rs 170000.00 Rs 190000.00

Rs 180000.00 Rs 500000.00 Rs 170000.00 Rs 190000.00

As per Budget proposals for the year 2011-12, the defence allocation of Rs 164415 cr involves a hike of a) 11.00% b) 14.0% c) 14.5% d) 15.0%

5. The size of the black money in the Indian economy is estimated at ………………… per cent of GDP by the Central Statistical Organisation? a) b) c) d)

40% of GDP 34% of GDP 29% of GDP 45% of GDP

499


Objective of the Eleventh Five Year Plan is : a) b) c) d)

7.

Faster & More inclusive growth Growth with Financial inclusion Inclusive growth Wider employment opportunities

GDP growth rate for the Eleventh Five Year Plan has been fixed: a) b) c) d)

8% 9% 10% 11%

8.

The Eleventh Five Year Plan pertains to the period a) 2007-12 b) 2010-15 c) 2004-09 d) None of the above

9.

I.B.S.A. stands for: a) b) c) d)

10.

India, Brazil South Africa Trilateral Co-operation Forum India, Brazil, South Africa Agreement India, Britain, South Africa Agreement None of the above

In Eleventh Five Year Plan, the objective of agriculture Growth is: a) 4% c) 6%

11.

12.

b) 5% d) 7%

Which International Orgainisation has committed to help India in implementing ‘Mission Clean Ganga’ to clean the river Ganges to the tune of USD 1 bn? a) IMF b) Asian Development Bank c) World Bank Who is the wealthiest person on earth as per the Forbes List of Billionaires 2010? a) Bill Gates of US b) Carlo Slim Helu of Mexico c) Warren Buffet of US d) Mukesh Ambani of India 500


13.

SBI is planning for a tie up ……………………….. to enter into General Insurance business. a) b) c) d)

Insurance Australia Group AIG Societe General GE Capital Insurance

14.

Which of the following is not true regarding personal taxation measures in the Union Budget for 2011-12? a) Exemption limit enhanced from Rs.1.60 lacs to Rs.1.80 lacs b) Citizens over 80 years of age to have exemption limit of Rs.5 lacs c) Senior citizens qualifying age reduced to 60 from 65 d) Women tax exemption limit enhanced to Rs.2.00 lacs

15.

The size of the black money in the Indian economy is estimated at ………………… per cent of GDP by the Central Statistical Organisation? e) 40% of GDP b) 34% of GDP c) 29% of GDP d) 45% of GDP

16.

The rate of Interest on Savings bank account is regulated by: a) By respective bank b) Indian Banks’ Association c) Reserve Bank of India d) None of the above

17.

Foreign banks are at present required to make good the shortfall in achievement of the stipulated targets/sub-target by depositing an amount equivalent to the shortfall with SIDBI for a period of : a) 1 year b) 2 years c) 3 years d) 4 years.

18.

The aggregate exposure of a bank/consolidated bank to the capital market in all forms (both fund based and non-fund based) cannot exceed _____________% of its net worth as on March 31 of the previous year : a) b) c) d)

20% 30% 40% 50% 501


19.

Who is the present Telecom Minister? a) A Raja b) Sachin Pilot c) Kapil Sibal d) Manmohan Singh

20.

Ceiling of composite Foreign Direct Investment in the Telecom Sector has been fixed at _______ %. a. 51% b. 61% c. 74% d. 100%

KEY TO AWARENESS OF BANKING FINANCE & ECONOMY ASSIGNMENT - 2 Q. Ans. Q. Ans

1 d 11 c

2 b 12 b

3 b 13 b

4 a 14 d

5 b 15 a

6 a 16 c

7 c 17 c

8 a 18 c

9 a 19 c

10 a 20 c

502


ASSIGNMENT - 3 1.

Priority sector home loans limit has been proposed to be increased from Rs………. Lacs a) From Rs.20 lacs to Rs.30 lacs b) From Rs.20 lacs to Rs.25 lacs c) From Rs.20 lacs to Rs.28 lacs d) From Rs.25 lacs to Rs.30 lacs

2.

Special Economic Zone (SEZ) Act was passed in the year: a) 2000 b) 2002 c) 2004 d) 2006

3.

Disinvestment target for 2011-12 has been fixed at ……………………… a) Rs.500 billion b) Rs.200 billion c) Rs.400 billion d) Rs.600 billion

4.

RBI has recently approved merger of Bank of Rajasthan with……………………. a) Axis Bank b) HDFC Bank c) ICICI Bank d) Punjab National Bank

5.

International Financial Reporting Standards (IFRS) will come in to effect from a) March 2015 b) March 2016 c) April 2012 d) April 2013

6

Committee on Financial Inclusion was headed by…………………… a) A K Puri Committee b) Ashok Narain Committee c) Uday Parekh Committee d) Dr C Rangarajan

503


7.

The committee to probe in to the irregularities of Common Wealth Games 2010 was headed by a) V K Shunglu b) Pragat Singh c) Shantanu Chopra d) Ashok Narain

8.

Which Indian company is placed at No.2 position in the list of world’s 10 biggest sustainable value creators prepared by Boston Consulting Group? a) TATA Group b) ONGC c) SBI d) Reliance Industries

9..

“Aadhaar” is a) Unique Identification number (UID) b) A Central Government scheme to Provide Basic Amenities in Rural Area c) A Government of India scheme to Provide Basic Amenities in Rural and Semiurban Area d) A Government of India scheme to Provide Basic Amenities for urban poor

10.

Maha Ratna status has been given to which of the following PSUs? a) SBI b) NABARD c) SAIL d) MMTC

11.

As per the Economic Survey 2010-11 the forex reserves of our country increased from USD 279.4 bn in Apr 2010 to USD ……………. in Dec 2010. a) USD 297.3 bn b) USD 300.10 bn c) USD 292.25 bn d) USD 295.00 bn

.

504


What do you understand by the term ‘repo rate’? a) Rate at which RBI borrows from Banks b) Rate at which RBI lends to Banks c) Rate at which RBI invests in capital market d) Rate at which repository interest is maintained

13.

The 16th Global Climate Summit held in Dec 2010 in ………………….. a) London UK b) Washington USA c) Cancun, Mexico d) Toronto Canada

14.

The United Nations has decided to observe 2011 as ……………………….. a) International Year of Astronomy b) International Year of Chemistry c) International Year of Medicine d) International Year of Peace

15.

With assets of USD 3.23 trillion ……………….. has become the world’s biggest Bank. a) Sumitomo Bank b) BNP Paribas c) American Express Bank d) Douche Bank

16.

Which social networking site has become the most visited web site in the US for the first time surpassing Google? a) Twitter b) Facebook c) Ace Network d) Yahoo

17.

Definition of Banking & other financial services is now expanded to include: a) b) c) d)

Money transfer services. Services as bankers to an issue. Courier services sponsored by bank networks. a&b

505


The time limit for completion of assessment / reassessment of tax by Income Tax Department is _____________ . a) b) c) d)

19.

Reduced to three months. Increased by three months. Now removed altogether. Three months for assessments & four months for reassessment.

RBI has recently set up a panel headed by ………………………….. to look into the customer service of Banks . a) C Rangarajan b) M Damodaran c) Bimal Jalan d) A C Sharma

20.

Shri.Anand Pai, who passed away recently, fondly known as Uncle Pai is the founder of a) Amar Chitra Katha & Tinkle b) Why? What? & How? c) Fairy Tales & Chithra Katha d) Champak


1 b 11 a

2 c 12 b

3 c 13 c

4 c 14 b

5 d 15 b

6 d 16 b

7 a 17 d

8 d 18 a

9 a 19 b

10 c 20 a

506


ASSIGNMENT - 4 1

Retail investor can now invest through the initial public offer up to Rs. a) 100000 c) 200000

2.

b)150000 d) 250000

SEVERSTAL is the mining giant of which country a) Germany c) USA

b) China d) Rusia

3. SBI is planning to open another ------------ branches abroad a) 10 b) 15 c) 20 d) 30 4. The present SLR ………% a) 21% c) 24%

b) d)

22% 25%

5. Which state is the first state to pass a law for the regulation of MFI s? a) UP b) AP c) MP d) HP 6. Idea Cellular , the Cell phone company has been appointed as Business Correspondent by which Bank? a) HDFC b) ICICI Bank c) Union Bank d) Axis Bank 7. Stimulus package is announced when there is? a) Inflation c) Boom

b) Stagflation d) Recession

8. Government of India ,acting tough on various telcom operator has imposed Fine to a tune of Rs ----------- crores for non-compliance of subscriber verifaction Process. a) Rs 600 c) Rs 500

b) Rs 800 d) Rs 700

507


9. The 20Th edition of international World Web Conference held on 28Th March 2011 at. a) c)

Hyderabad Pune

b) Bengaluru d) Delhi

10 Finance Minister of the year for Asea award has been conferred on a) c)

Thomas Isaac Manish

b) Brett Azuma d) Pranab Mukerjee

11 Foreign nation can now remit ----% of their salary earned in India to their country a)

100%

b) 75%

c)

50%

d) 25%

12. The GDP of the country registered a growth of …….% a) c)

7% 8%

during 2009-2010?

b) 7.5% d) 8.25%

13The per capita Income of country is ……..Rs. a) 54527 c) 58987

b) 55687 d) 61258

14.The size of the economy is projected at ------ crores a) 7256571 c) 7255870

b) 7555870 d) 7758780

15. The out put of pulses & grains for 2010-2011 stood at ----- million tones a) 175 c) 235.8

b) 200 d) 244.7

16.Jalan committee report is about a) banks b) Stock Exchanges c) Financial Institutions d) Education

508

STATE BANK LEARNING CENTER, PANCHKULA 17. The union Cabinet has approved a Bill which seeks to increase the Authorised capital of SBI to Rs ------------- crores a) Rs 5000 c) Rs 6000

b) Rs 8000 d) Rs 10000

18.The current account deficit o f the country as at September ,2010 in Billion is a) 30.23 c) 34.9

b) d)

32.5 36.5

19. Y.H.Malegoan committee was appointed to study the issues & concerns of a) Micro Finance c) Agriculture

b) SME d) Trade

20 AT what rate MAT is charged? a) 10% c) 18.5%

b) 15% d) 20.5%

21 Over all coropate tax proposed in India is ……% a) 20% b) 22% c) 25% d) 30% 22 The Direct Tax Code is expected to become law effective form…… a) 2011 c) 2013

b) 2012 d) 2014

23 Which of the following have been awarded the Navratna Status recently a) RINL c) SAIL

b) ONGC d) NTPC

24 Banks in India have switched to Base Rate System from …… a) Cash Reserve Ratio c) Bank Rate

b) Statutory d) Benchmark Prime Lending Rate

25 Who is the president of G-20? a) Obama c) David Cameroon

b) Man Mohan Singh d) Nicolas Sarkozy

509


KEY TO AWARENESS OF BANKING FINANCE & ECONOMY ASSIGNMENT - 4 Q. Ans. Q. Ans Q. Ans

1 C 11 A 21 D

2 D 12 C 22 B

3 D 13 A 23 A

4 C 14 A 24 D

5 B 15 D 25 D

6 D 16 B

7 D 17 A

8 D 18 C

9 A 19 A

10 D 20 C

510

STATE BANK LEARNING CENTER, PANCHKULA ASSIGNMENT NO 5.

1.

Receipent of “ENTREPRENEUR EXTRAORDINAIRE” life time achievement award in 2009 is. a) Sri O.P.Bhat c) Sri Azim Prem Ji

b) Sri Mukesh Ambani d) Sri Ratan Tata

2. The cenetral bank of China is called a) Bank of china c) HSBC

b) Peoples’ bank of china d) Shanghai Bank

3. India travel card has been introduced by a) Axis Bank c) ICICI

b) d)

Syandicate bank Indian Bank

4. What is the rate of interest subvention proposed in 2011-2012 Budget to futher incentivise prompt repayment by farmers? a) 1% c) 3% 5.

6.

b) 10 d) 7

Mini Navratna have a autonomy up to Rs. a) c)

500 700

b) 600 d) 800

What is the maximum interest paid on infrastructure bonds? a) 8.5% c) 9.255

8.

2% 4%

Infrastructure Bonds have a lock in period of -----years a) 5 c) 15

7.

b) d)

b) 8.75% d) 9.755

Which Indian banks are treated as Foreign entities? a) Axis Bank & HDFC c) City Bank & HSBC

b) ICICI & HDFC d) PNB & ICICI 511


9.

What is the dis-investment target of the government during 2010-11 in Crore a) c)

10. a) c) 11

20000 50000

b) 40000 d) 60000

Which is the second largest commercial Bank in private sector in India ICICI AXIS bank

b) HDFC d) Bank of Rajasthan

Which bank has merged with ICICI last year .

a)

Bank of Maharastra

b) Bank of Rajasthan

c)

Bank of Maholi

d) Bank of Madhurai

12. a) c)

NABARD was formed in the year …… 1980 1982

b) 1981 d) 1983

13. How many listed company are there in the country . a) 2500 b) 3000 c) 3500 d) 4500 14.

Berclays Bank belongs to

a) UK c) USA 15.

b) Germany d) France

J.P.Morgan Chase Bank is from

a) Germany c) USA

b) UK d) France

16. The name of ABN Amro Bank N.V has been changed to a) The Royal banks of Scotlad N.V. c) The ABN ltd

b) The Royal Bank of Ireland N.v d) The ABN & Scotland

17. The Currencyof S.korea a) c)

Yuan WON

b) Dinar d) Dollar 512


18. Which is the largest Micro Finance Company in the country a) Share c) Spandana 19.

b) Spurthi d) Swayam Krushi

The minimum application amount for retail investors in IP is Rs.

a) 10000 b) 15000 c) 20000 d) 25000 20 To be listed in the stock exchange, the minimum public holding of at least ----% a) 10% c) 20% 21 a) c) 22

b) 15% d) 25%

Wal Mart is a Multi brand retail of …… in India UK France

b) USA d) Germany

Banks are mandated not to accept collateral security in the case of loans Up to --------------- extended to units in the MSE sector a) Rs 10 lakh b) Rs 15 lakh c) Rs 5 lakh d) Rs 7 lakh 23

Who is the present Chairmen of SEBI a) U.K.Sinha c) Bijoy Ghosh

24

SIP in gold has been introduced by -------- Mutual Fund a) SBI c) ICICI

25

b) P.A.Nayer d) Nalin Mehta

b) LIC d) Reliance

PPF Schemes offer a rate of interesr of ------% p.a a) 8 c) 9

b) 8.5 d) 9.5

513



Q. Ans. Q. Ans Q. Ans

1 D 11 B 21 B

2 B 12 C 22 A

3 A 13 D 23 A

4 C 14 A 24 D

5 A 15 C 25 A

6 A 16 A

7 D 17 C

8 B 18 A

9 B 19 A

10 B 20 D

514

STATE BANK LEARNING CENTER, PANCHKULA Assignment no 6 1.

Who is the governor of Bank of England? a) Marc Listosella c) Mervyn King

2.

b) Dieter Zetsche d) Raymond Davis

SBI Bonds got a rating of “AAA” by CRISIL & CARE which indicate highest a) Liquidity c) Return

3.

The budget allocation for MGNREG during the current fiscal 2010-11 in crores a) 30100 c) 50100

4.

b) Safety d) Solvency

b) d)

40100 55100

Goods & Services tax will be effective from 1st April--------a) 2010 c) 2012

5. CMD of Union Bank of India a) M.V.Nair c) E.E.Badshaw

b) 2011 d) 2013 b) Sasi Mukund d) Albert Tauro

6. ANZ Bank pertain to which countries? a) England & USA c) Australia & Netherlands

b) Australia & Newzeland d) Australia & Nizeria

7. U.K.Sinha who has been appointed as chairman of SEBI was formerly Chairman & Managing director of a) Kotak securities ltd c) UTI

b) Mahindra Sathyam d) HDFC

8. G.D.P of India for 2009-10 has grown at …….% a) 7.2% c) 7.75%

b) 7.5% d) 8%

9. Carbon credits are awarded to countries or groups that have reduced their a) c)

CO2 Advances

b) Green house gases d) SDRs 515


10. Present limit on FDI in Insurance Sector is------% a) c)

15 22

b) 18 d) 26

11 Large NBFCs which are taking deposits from the public have to maintain higher CAR of----% a)

10

c)

12

b) 11 d) 13

12. At present finance companies are required to maintain a CAR of----% a) c)

10 12

b) 11 d) 13

13. Banking for all is the tag line of ---- Bank a) SBI c) IDBI

b) ICICI d) Indian Bank

14. Who is the chairman of the parliamentary standing committee on finance? a) Paranb Mukerjee c) L.K.Advani

b) Yashwant Sinha d) Shusma sinha

15. The famous Hyundai and Samsung names are ----- firms a) Japan c) China

b) South Korea d) Singapore

16. The bond issue(Feb 2011) of the SBI was for Rs.------crore from the retail investors a)1000 c)2500

b)2000 d)3000

17. The financial inclusion target has to be met by banks by a) 2011 c)2013

b)2012 d)2014

18. The S & P 500, the bench mark measure of----- shares a) India c) USA

b) Europe d) U.K 516


19.Tier-1 Capital is the core measure of a bank’s----- strength a) Financial c) Solvency

b) Liquidity d) Profitability

20. Minimum capital adequacy ratio (CAR) of the banks should be ---- % with a Tier-1 CAR of at least 6%. a) 8 c) 10

b) 9 d) 11

21. Bank on Bike service was launched on a pilot basis in --- district of A.P a) Medak c) Nalgonda

b) Rangareddy d) Mahabubnagar

22. SONAGHAR is a a) Credit card outlet c) car loan outlet 23.

b) Housing loan outlet d) gold banking outlet

Who among the following industrialists pledged a whopping Rs.1540 crores to education foundation a) Grandhi Mallikharjuna Rao b) Anil Ambani c) Azim Premji d) Ratan Tata

24. METAGRID is the software of a) Credit card c) Insurance 25.

State Bank freedom is ----------a) Home loan product c) Mobile Banking Service

26.

b) Mobile Banking d) Gold Banking

b) Personal loan d) Debit Card

In it’s latest Credit Policy announcement in June 2011, the RBI has raised the policy rates for the 10th time in 15 months .The repo rate has been hiked by ….. Basis points and at present is ……..% a) 25, 7.25 c) 25, 7.75

b) 25, 7.50 d) 25, 7.00

517


The Reverse repo rate has been hiked by …. Basis points and the present rate is …. % a) 25, 6.00 c) 25, 6.50

b) 25, 6.25 d) 25, 6.75

28. The rate for Marginal Standing facility at present is ……. %. a) 8.50 c) 8.75

b) 8.25 d) 8.00


Q. Ans. Q. Ans Q. Ans

1 C 11 D 21 A

2 B 12 C 22 D

3 B 13 C 23 A

4 C 14 B 24 D

5 A 15 B 25 C

6 B 16 B 26 b

7 C 17 B 27 c

8 D 18 C 28 a

9 B 19 A

10 D 20 B

518

STATE BANK LEARNING CENTER, PANCHKULA ASSIGNMENT-7 1.

Call Money funds are lent with a maturity of: a. c.

2.

One day to three days Two days to fourteen days

b. d.

One day to fifteen days One day to seven days

5% 10%

b. d.

7.5% no ceiling

In Call Money market, borrowings by a scheduled commercial bank should not exceed: ____________. a. b. c. d.

5.

One day to two days One day to seven days

Maximum interest rate which can be allowed in call money market is: a. c.

4.

b. d.

Under Notice Money Market funds are transacted for a period of :___ a. c.

3.

One day to three days One day to a fortnight

100% of owned funds 2% of aggregate deposits as at end of previous financial year higher of ‘a or b’ ‘a or b’ whichever is less.

In Call Money market, lending of scheduled commercial banks should not exceed _______ % of their owned funds on a fortnightly average basis. a. c.

20 30

b. d.

25 40

6.

NBFCs have to be registeed with ----------a)Nabard b)Sebi c)Ministry of finance d)RBI

7.

For certificate of registration minimum net owned funds for new NBFCs should be Rs-----a. 1cr b. 2cr c. 3cr d. 5.00lacs

8.

Recently, SBI has opened two call centres at Gurgaon and Chennai to deal with a.NPAs and Special Mention accounts b. Customer grievances c. ATM / Mobile / internet banking related queries d.Queries related to P segment loans 519


9. ATMS linked to the National Financial Switch (NFS) network are managed by _____. a. Reserve Bank of India (RBI) b. National Payments Corporation of India (NPCI) c. IDRBT d.NCR 10. A special campaign for financial inclusion to bring banking to the masses launched by the Government of India is ______. a. Swavlamban b. Aadhar c.Swabhiman d.Atam Samaan 11 A High powered committee constituted by the RBI on the required changes in existing policy framework and prevalent practices of customer service in banks was headed by ________. a. O.P. Bhatt b. M. Damodaran c. Bimal Jalan d.P.B.Shetty 12.

Provision relating to Bank Rate is contained in: a. b. c. d.

13.

Cash Reserve Ratio is maintained under the provisions of: ____________. a. c.

14.

Sec 42 of RBI Act Sec 49 of RBI Act Sec 42 of Banking Regulation Act None of the above

Section 49 of RBI Act Section 42(1) of RBI Act

b. d.

Section 24 of Banking Reg. Act Section 24(2) of Banking Reg.Act

SLR is maintained by scheduled commercial banks under Section _________ . a. c.

42(1) of RBI Act. 49 of RBI Act.

b. d.

42 of Banking Reg. Act 24(2A) of Banking Reg. Act

520


15.

Twelfth five year plan starts from _____. a.2011-12 b. 2013-14 c. 2012-13 d. 2014-15

16.

CRR balance is maintained by banks with RBI daily on the basis of:______. a. b. c. d.

Average balance on a fortnightly basis Daily minimum Balance Monthly average balance Average weekly balance

17. To streamline various ‘Green Banking’ initiatives, our Bank has set up ‘_____’ at Credit Policy & Procedures Department, Corporate Centre, Mumbai. a. Eco-friendly Charter b. Green banking cell c. Environment Hub of SBI d.Financial inclusion cell 18. Recently a self-service banking centre has been opened by our Bank to increase customer convenience and provide 24/7 access to banking in _____ a. Hyderabad b. Pune c. Banagalore d.Mumbai 19.

Which amongst the following taxes is not imposed by Central Government : a) Corporate Tax b) Tax on Income other than Agril. c) Custom duty d) Land duties

20. . Who is our Technology Service Provider for processing of Merchant Acquiring Business Transactions? a. PRIZM Payment Services Private Limited (PPSPL) .b. c-Edge Technologies c. SBI Cards Payments Ltd d.New age technology

521



1 c 11 b

2 c 12 b

3 d 13 c

4 c 14 d

5 b 15 c

6 d 16 a

7 c 17 c

8 a 18 a

9 b 19 d

10 c 20 a

522


ASSIGNMENT - 8 1. To prevent frauds in loan cases on the same immovable property, the Government has proposed in budget 2011-12, to set up _______ under the SARFAESI Act, 2002. a. Fraud Monitoring Cell b. Housing Ombudsman Scheme c.Central electronic registry d.trust monitoring cell 2.

SBI won _________ Award under the IBA Banking Technology Awards 2010. a. b. c. d.

3.

Best Risk Management Best Customer initiative Best Mobile Banking Best internet banking There are certain financial contracts outlining an exchange of payments linked to the performance of a specified underlying credit sensitive asset or liability. These are known as: a. c.

4.

b. d.

Securitization Factoring

Which of the following is not a term, which is used in the context of Asset Liability Management? a. c.

5.

Derivatives Leasing

Maturity Buckets Residual Maturity

b. d.

Capital Fund Interest rate risk

Government of India has decided to roll out Direct Tax Code wef _____. a. April 2012 b. January 2012 c.April 2011 d. July 2011

6.

Borrowing by banks from other banks / FI s in the call money market beyond 14 days is classified as: a. c.

Call Money Inter-Bank Deposit

b. d.

Medium Term Borrowing None of these

523


Which among the following represents the basic nature as an instrument for a commercial paper issued by a company? a. c.

8.

b. d.

a cash credit agreement a Usance promissory note

What is the minimum denomination amount for a commercial paper? a. C.

9.

a demand loan agreement a bill of exchange

5 lac 25 lac

b. d.

10 lac none of the above

To cover home loan borrowers, a new product launched by SBI Life in place of Dhanaraksha Plus is ______ a. SBI Home Suraksha b.SBI life-Rin raksha c. SBI Life Home Suraksha d. SBI life Puran suraksha

10.

Who among the following cannot issue a commercial paper? a. c.

11.

b. d.

All India Financial Institutions Commercial Banks

The Tangible Net Worth of a company (as per the latest audited balance sheet), for being eligible to issue Commercial Paper, should not be less than: a. c.

12.

Companies Primary dealers


b. d.


A “Centre for Advanced Quantitative Finance” for imparting training on quantitative finance for handling risks has been established in our Bank at ______. a. State Bank Foundation Institute, Indore b. State Bank Academy, Gurgaon c. SBIICM d. State Bank Staff college ,Hyderabad

13.

Commercial Paper can be issued for a minimum period of:_____________. a. b.

7 days one month

b. d.

15 days 3 months

524


Commercial Paper can be issued for a maximum period of: a. b.

15.

17.

6 months 3 years

3 months 15 days

b. d.

one month 7 days

A certificate of deposit can be issued by a Scheduled Commercial Bank for a maximum period of: _________. a. 3 months b. 6 months c. 3 years d. 12 months A Certificate of Deposit is issued by a bank at: ______________. a. c.

18.

b. d.

A Certificate of Deposit can be issued by a Scheduled Commercial Bank for a minimum period of : ___________. a. c.

16.

12 months 3 months

maturity value of the certificate b. discount to the face value d.

face value premium to face value

As per Budget 2011-12, Housing Loans up to Rs. _______ will be categorised under priority sector. a.20 Lacs b. 25lacs c.30 Lacs d.50lacs

19.

The minimum amount of a certificate of deposit can be :_________. a. c.

20.

Rs.5 lac Rs.100 lac

b. d.

Rs.10 lac Rs. 1 lac

In case of maturity day of a CD being a holiday, its payment is required to be made on: a. c.

Succeeding day Preceding Business day

b. d.

Preceding Day Succeeding Business day

525



1 c 11 c

2 b 12 d

3 a 13 a

4 b 14 a

5 a 15 d

6 c 16 d

7 d 17 c

8 a 18 b

9 b 19 d

10 d 20 c

526


ASSIGNMENT-9 1.

2.

The definition of Net Bank Credit (NBC) is:a. b.

NBC = Total advances – Refinance obtained from SIDBI/NABARD. NBC = Total advances – Provisions made for NPAs c. NBC = Total advances – Claimed lodged with DI & CGC

d.

NBC = Total advances – Advances given against FCNR/FCNB/NRI deposits

Which of the following cannot be called a debt instrument as referred in financial transaction? a. certificate of deposit c. stock

3.

When the receivables of various loans and obligations are put together and distributed or liquidated to various investors having liquid funds, the process is called: a. c.

4.

b. d.

factoring liquidation

Indian Financial Network Inland Financial Network

b. d.

Internet Financial Network International Financial Network

In the context of Capital Adequacy Ratio, BASEL–I, the subordinated debt is a component of: ______________ . a. c.

6..

leasing securitization

VSAT based communication system which is used for financial transactions between banks, INFINET stands for: a. c.

5.

b. bond d. commercial paper

Tier I capital fund Tier III capital fund

b. d.

Tier II capital fund b and c

Under the capital adequacy ratio requirements, the Tier II capital shall not exceed ______% of Tier-I capital. a. c.

25% 75%

b. d.

50% 100%

527


Who is to issue a registration certificate to set up Asset Reconstruction Company? a. c.

8.

Registrar of Companies RBI

b. d.

SEBI IRDA

Government of India issues treasury bills for a maturity period of ____________. a. c.

14 days and 91 days 14 days and 182 days

b. d.

91 days and 182 days 91 days and 364 days

9.

Which of the following committees has given its recommendations for financial inclusion a)Kelkar committee b)Rangarajan Committee c)Rakesh mohan committee d)Sinha committee

10.

Negotiated Dealing System relates to: a. c.

11.

Trading at stock markets b. Settlement of security dealings d.

Trading in Govt. Securities a and b

Treasury Bills are:___________ . a. Negotiable Instruments being Usance Promissory Notes b. Non-negotiable Instrument c. Quasi Negotiable Instruments d. Not Transferable Instruments.

12.

When an existing non-profit organization is converted into a for-profit company, the process is called: a. c.

re-mutualisation de-materialization

b. d.

de-mutualisation re-materialization

13.

Rolling settlement is the system relating to: a. Payment of Govt. Securities b. Trading at Stock Exchanges c. Settlement of dues by Borrowers In banks d. none of the above

14.

The term ‘Green Field Projects’ in the context of project financing means a. Projects installed in Green Field b. Project relating to agro-based activities c. Project financed by way of agricultural resources d. New projects, which have to be started from scratch including the provision for infrastructure 528


15.

The term ‘Brown Projects’ means: a. Projects in Towns & Cities b. Projects relating to activities other than agriculture c. Projects aiming at modernization, diversification, expansion d. Projects involving high capital input

16.

RBI’s model for rating of Indian banks is known as: a. c.

17.

Investment Fluctuation Reserve b. Investment Reserve d.

Investment Depreciation Reserve Investment Provision Reserve

Assets of Balance Sheet Paid up Capital Tier II of Capital Fund Reserve under Tier I of Capital Fund

The trade organization established for facilitating international trade in South Asian countries, is known as:__________. a. c.

20

CAMEL RFIA

Investment Fluctuation Reserve is part of:______________. a. b. c. d.

19.

b. d.

As per RBI directives, the banks are required to create a reserve in respect of their investments in securities under SLR or otherwise, which is known as: a. c.

18.

CAMELS CACS

SAARC Trade Agreement DAKSHESH

b. d.

SAFTA Singapore Agreement

What does the term ‘Over geared Company’ mean? a. b.

Company doing extremely well Company running satisfactorily

b. Company deeply in debt d. Company doing over trading

KEY TO AWARENESS OF BANKING FINANCE & ECONOMY ASSIGNMENT 9 Q. Ans. Q. Ans

1 d 11 a

2 c 12 b

3 c 13 b

4 a 14 d

5 b 15 c

6 d 16 a

7 c 17 a

8 d 18 c

9 b 19 b

10 b 20 b

529


AWARENESS OF BANKING FINANCE & ECONOMY ASSIGNMENT - 10 1. State Bank Leadership Institute has been set up in a) Bhopal b) Indore c) Jaipur

2.

Under Financial all villages with a population of 2000 have to be covered by banking services by the end of financial year a) 2013 b)2012 c)2015

3. .Financial sector legislative reforms commission is headed by a) D.Subarao b)Syamal Banerjee c)B.N. Srikrishna 4. The new chairman of IBA is a) D. B.Bhalla b)D.D. Mallaya

c)V.K. Kohli

5. .------- and SBI have formed a joint venture with an investment of Rs100cr to reach out to unbanked areas. a)Airtel

b)BSNL

c)Reliance

6. First Bank in the country working as Registrar of UIDAI---a)RBI

b)PNB

c)SBI

7. Ceiling amount for referring cases for compromise settlement of dues of banks using LokAdalat has been increased from Rs10.00lacs to ------a)Rs 15.00lacs b)Rs 20.00lacs c)Rs30.00lacs 8. SBIs first Ultra HNI branch opened in---------a)Mumbai b)Calcutta c) Hyderabad 9. . IFRS stands for -------------a)Indian Financial reporting standards b)International Financial reporting standards c)Indian Fiscal reporting standards d)International Fiscal reporting standards

530


10.The new name for IFRS in India is a)IndAS b)INFS c)INdRS d)InaS 11.SBI’s recently opened ATM in Nathu la pass is in ------circle a)Bengal b)Chandigarh c)North East 12.SBI has recently tied up with Reliance Communication for a) Internet services b) mobile banking c)telephone for employees 13.SEBI has recently made ASBA compulsory for which class of customers a) all individuals b)all non retail investors c) all corporates 14.Which of this is not a core sector a)cement b)finished steel c)pharmaceutical 15. SBI does not have 100% stake in which of its subsidiaries a)State Bank of Mysore b)State Bank of Hyderabad c) State Bank of Patiala KEY TO AWARENESS OF BANKING FINANCE & ECONOMY ASSIGNMENT - 10

1 2 3 4 5

c b c b a

6 7 8 9 10

c b c b a

11 12 13 14 15

a b c c a

531

Promotion Book 2011

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