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State Bank Learning Centre, Ajmer 1


FOREWORD

PUSHKAR PROMOTION GUIDECOMPILED STUDY MATERIAL FOR BANK'S INTERNAL PROMOTION EXAMINATIONS

I am glad to release the book “PUSHKAR PROMOTION GUIDE”, compiled by State Bank Learning Centre, Ajmer.

I am of the view that the book will immensely benefit the staff members who are aspiring for the ensuing promotions.

I hope this Book will enrich the knowledge of our Staff and will be helpful to those appearing in various promotional examinations. Let success be with our readers through out their career.

I compliment the entire team of SBLC, Ajmer for compiling and bringing out “PUSHKAR PROMOTION GUIDE” , a Guide for promotion aspirants.

I hope this Book will be of great help to all the aspirants. Let success be with our readers through out their career.

My warm wishes

VIJUY RONJAN Chief General Manager Local Head Office, JaipurDATE: 24.01.2018


FOREWORD

PUSHKAR PROMOTION GUIDECOMPILED STUDY MATERIAL FOR BANK'S INTERNAL PROMOTION EXAMINATIONS

I congratulate team SBLC Ajmer for compiling the captioned book for promotion examinations.

It is an appreciable initiative taken by SBLC Ajmer. The book will not only useful for those appearing in internal promotion exams but also for operating staff members in general.

I extend my warm wishes to all staff members participating in the promotion exercise.

With warm wishes

AJIT SINGHDy. General Manager & CDO Local Head Office, JaipurDATE: 24.01.2018


STATE BANK LEARNING CENTREHARBILAS SHARDA MARG,CIVIL LINES, AJMER-305001PHONE: 0145-2426116

IMPORTANT INFORMATION FOR THE READERS The team SBLC Ajmer has compiled this book by collecting information from various relevant places. We are confident that this book will not only enrich knowledge of our staff members in various grades but will also useful for those appearing for various promotion examinations.

2. Required due care has been taken to incorporate the latest instructions / information on various topics, yet this Guide book is not a substitute for the various Circulars, issued by the Bank / authority, from time to time. Therefore, readers are requested to be guided by the relevant instructions / circulars also. Despite our best efforts, in proper compiling the Book, a few shortcomings / mistakes might have crept in inadvertently and for this, neither the Bank nor the SBLC owns up any responsibility for controversies, if any, arising out of this compilation.

3. Readers are requested to advise us mistakes, if any noticed / suggestions for rectifications / improvement by sending mail to - “[email protected]”.

WITH BEST WISHES

TEAM SBLC, AJMER

S. No.

Name Designation Mobile No.

1 Ummed Singh Asstt. Gen. Manager 78374578552 Tarun Kumar Chief Manager 96109627393 Deepak Swami Chief Manager 99505748884 Rakesh Jain Chief Manager 97999262535 Rajesh Dahiya Manager 80766950306 Sanjay Jonwal Manager (S) IT 9950999371


Vision

MY SBI

MY CUSTOMER FIRST

MY SBI: FIRST IN CUSTOMER SATISFACTION

Mission

We will be prompt, polite and proactive with our customers.

We will speak the language of young India.

We will create products and services that help our customers achieve their

goals.

We will go beyond the call of duty to make our customers feel valued.

We will be of service even in the remotest part of our country.

We will offer excellence in services to those abroad as much as we do to

those in India.

We will imbibe state of art technology to drive excellence.

Values

We will always be honest, transparent and ethical.

We will respect our customers and fellow associates.

We will be knowledge driven.

We will learn and we will share our learning.

We will never take the easy way out.

We will do everything we can to contribute to the community we work in.

We will nurture pride in India.


INDEX1 Bank's Policy Guidelines 7-102 Top Organisational Set-up 113 List of Circles 124 List of Circle Audit Offices 135 Balance Sheet Highlights 14-176 Exam Pattern for Various Examinations 18-20

OBJECTIVE QUESTIONS7 General Awareness 21-348 Account opening & KYC 35-399 P Segment 40-5610 SME Segment 57-8711 Home Loan 88-9512 Customer Service and Digital Banking 96-12113 NPA Management 122-12714 Agri Banking 128-13315 International Banking 134-16716 Staff Matters and Advances 168-17117 Information Technology 172-175

STUDY NOTES18 Banking & Finance 176-17819 National and State News 179-18320 Central Govt. Schemes 184-18621 State Govt. Schemes 18722 International News and current affairs 188-19023 Schemes related to Banking & Finance 191-19524 Credit Rating Agencies 19625 Financial Instruments 197-19826 Banking & Financial Terms 199-20327 Important economic terms, events and initiatives 204-22028 Differentiated Banks in India 221-22229 Basel Norms 22330 Important Financial Ratios 224-227

POLICY GUIDELINES 2017-2018

• Bank’s CASA ratio was at 46.55%as on 31st December 2016.

• Global Growth: According to IMF’s World Economic Outlook, Oct’16, global growth is estimated to slow to 3.1% in 2016 before recovering to 3.4% in 2017.

• Economic Growth: As per the advanced estimates released by CSO Q3 FY17 GDP growth was 7.0%, compared to 7.4% growth in Q2 and 7.2% in Q1. For FY17 GDP growth is expected to come in at 7.1%. The good thing is that Agriculture and Allied Activities is likely to grow at 4.1% in FY17, compared to last year’s growth of 1.2%.Industry is expected to grow at 5.2% in FY17, down from 7.4% in FY16, owing to lackluster growth in Mining, Manufacturing and Construction. Services sector growth is likely to moderate to 8.8% in FY17, compared to 8.9% in FY16.• India’s Current Account Deficit (CAD) has narrowed down $3.4 billion (0.6% of GDP) in Q2 FY17, lower than $8.5 billion (1.7% of GDP) in Q2 FY16. In Q2 FY17, foreign exchange reserves (on BoP basis) increased by $8.5 billion as against a decline of USD 0.9 billion in Q2 FY 16.

• Banking: The fortnightly data of ASCB indicates that credit off-take (YoY) has declined to historical low of 4.76% as of week ending 17th February 2017 compared to last year’s growth of 11.6% in Feb’16. The aggregate deposits growth however, improved to 12.67%, compared to last year's growth of 11.01%.

• Smart Cities - The mission is to improve efficiency of cities and enable local area development, thereby driving economic growth and improving quality of life. An investment of Rs.50,802 Crore over a five-year period has been proposed in these 100 cities.• Bank proposes to move towards ROE based budgeting from FY 18. While the whole Bank level ROE target has been set at 9.5%.

• Deposits -The market share of SBI’s Domestic Deposits has increased to 18.15% as on 31st December 2016 as compared to 17.41% as on 31st December 2015. CASA ratio showed an increase of 385 bps YoY from 42.70% in December 2015 to 46.55% in December2016.• We have set a target of 46% for CASA Ratio for March ’18, with share of CA increasing to at least 10%.

• Advances- Total advances grew from Rs.14,28,495 crore in December 2015 to Rs. 14,97,164 crore in December 2016, a growth of 4.81% YOY. However, there has been de-growth in total advances by 0.82% since March 2016.Overall, PER segment has shown a growth of 17.50% YOY. The Home loan portfolio has grown from Rs.1,79,683 crore to Rs. 2,12,600 crore, a growth of 18.32% YOY. Auto Loans and Xpress Credit loans too have increased by 19.98% and 24.75% YOY respectively.

• Priority Sector lending- Bank has to achieve a Priority sector lending target of 40% of its Adjusted Net Bank Credit (ANBC). As on December 31, 2016 Bank’s PSL lending was 33.01% of its ANBC.


• Cost Efficiencies- Our Cost to Income Ratio has decreased by 130 bps from 50.78% in Dec ’15 to 49.48% in Dec’16.• While GOI has so far allocated Rs.5,681 Crore of Capital during FY 17, the Bank has raised Rs. 9,100 Crore of Additional Tier-I Capital during the year till date. The Capital Adequacy Ratio (CAR) of the Bank was 13.73% as on31st December 2016.• Our Bank has become the Number one Merchant acquirer in the country with more than 4 lac POS machines in Dec 2016, which is likely to reach 6 lacs by end FY17. The daily average transactions on POS have gone up from 2.26 lacs last year to 5.52 lacs now,with the Bank recording peak daily transaction level of 2 million during Dec 16.

• SBI Buddy- Our mobile wallet, which was launched on 18.08.2015 in 13 languages to counter the challenges posed by e-wallets has received great traction post demonetization and has been gaining market share since then. The wallet has more than 8 million registrations as on 31st December 2016 and its daily down loads have more than doubled post demonetization.

• SBI Pay- This is a payment solution for not only SBI account holders but also other bank account holders, through NPCI’s Unified Payment interface (UPI), and is an alternative for cashless banking and a possible disruptor for wallets in the future. It works based on Virtual payment address concept and can be used for payments across banks.

• SBI Mingle- Our Social Media Banking platform was launched in 01.07.2016 to provide basic banking services like funds transfer, balance enquiry and mini statement and we intend to introduce customer complaint and resolution in the coming months.

• Mobile Banking- The Bank is the market leader in respect of Mobile Banking with a market share in value of transactions increasing from 34.93% as at March 16 to 50.47% as at December 2016. In respect of number of transactions the market share of the Bank stood at 24.98% as at Dec 2016. The demonetization has further boosted our Mobile Banking transactions mainly due to boost of transactions through our wallet “Buddy”.

• Anytime Channels-The Bank’s overall percentage of Anytime Channels transactions to total transactions has witnessed consistent improvement over the years. The same stood at 77.32% as on 31st December 2016. Achievement of a minimum target of 85% by the end of FY18.

• Other initiatives

a) SBI Wealth Management - SBI Exclusif-Specialized Wealth Management vertical was


created to extend Omni channel access to deliver transactions and advisory to HNIs on a differentiated proposition basis. It was initially launched in Bangalore to retain the relationships of existing HNI customers and also to acquire new ones. The facility now stands extended to Chennai and will be rolled out across the country during FY 18. While 1956 HNI customers have been on-boarded with Rs.1525 crore AUM as on 31st December 2016, we should target at least 5000 HNI customers with AUM of Rs. 5000 crore in FY18.

b) SBI In-Cube- It is a dedicated branch for on boarding start-ups, opened in Bangalore. The offered services include advisory services to budding entrepreneurs for setting up of a start-up company and issues related to taxation and regulations.

c) Smart SME- It is an easy cash flow based financing for sellers on e-commerce platforms with quick online sanction.

d) Merger of Associate Bank- On April 1 2017, we will see the merger of our 5 Associate Banks with SBI. With this,the number of branches of SBI will increase by around 6,000 and employee strength by around 70,000. The merger will catapult the Bank in to the club of top 50 global Banks. While in the medium to long term, the merger will bring about business synergy and cost optimization due to elimination of redundancies in all areas, it is a collective responsibility of all of us to front load and maximize the benefits at all levels, be it in management and retention of customers, improvement in branch operations and productivity, rationalization of centralized processing centers, network optimization, IT and human resources, digital initiatives, treasury operations and best practices for risk management.


PARAMETERS AND TARGETS


List of Circles1. Ahmedabad Circle

2. Amaravati Circle

3. Bengaluru Circle

4. Bhopal Circle

5. Bhubaneshwar Circle

6. Chandigarh Circle

7. Chennai Circle

8. Delhi Circle

9. Hyderabad Circle

10.Jaipur Circle

11. Kolkata Circle

12.Lucknow Circle

13.Mumbai Circle

14.North-Eastern Circle

15.Patna Circle

16.Thiruvananthapuram Circle


List of Circle Audit Offices

1. Bengaluru

2. Bhopal

3. Bhubaneshwar

4. Chandigarh

5. Chennai

6. Gandhinagar

7. Guwahati

8. Hyderabad

9. Jaipur

10.Kolkata

11. Lucknow

12.Patna

13.Pune

14.New Delhi

15.Vijaywada

16.Thiruvananthapuram


Highlights of FY 2016-17

Financial Performance & Capital Adequacy

Net Profit at Rs.1,582 Cr in Q2FY18 and Rs.3,587 Cr in H1FY18 up by 383.83% and 2061%

YoY respectively.

Operating Profit excluding exceptional & one-time items up by 11.40% YoY in Q2FY18

Operating Expenses increase contained at 2.28% YoY in Q2FY18 and 2.97% YoY in H1FY18

Domestic NIM at 2.59% shows improvement of 9 bps over Q1FY18

Capital Adequacy at 13.56% up by 25 bps over June 17

Retail Franchise

Sustained CASA growth with improvement of 21.15% YoY

CASA Ratio up 398 bps YoY to 44.88%

Retail Term Deposits grew by 10% YoY

Retail Loans grew by 13.05% YoY driven by 12.71% growth in Home Loans

Asset Quality

Gross NPA declines by 14 bps to 9.83% and Net NPA declines by 54 bps to 5.43% in Q2FY18

from Q1FY18

Slippage Ratio declines to 1.85% in Q2FY18 from 5.38% in Q1FY18

Provision Coverage Ratio with AUCA at 65.10% and without AUCA at 47.40%, an increase of

431 and 470 bps respectively from June 2017

Digital

78% of total transactions through alternate channels. Share of Digital Transactions up over

1000 bps as on Sep 17 from Sep 16

Leadership position in Debit Card spends with 31% Market-share

Leadership position in Merchant Payment Business with over 10,89,000 touch points which

includes Bharat QR and Bhim-Aaadhar-SBI


Q2FY18 OVER Q2FY17

Net Profit of Rs.1,582 Cr in Q2FY18 up 383.83% YoY Operating Profit (excluding exceptional and one-time items) up by 11.40% from Rs.13,073 Cr in Q2FY17 to Rs.14,563 Cr in Q2FY18. Net Interest Income up by 2.58% from Rs.18,119 Cr in Q2FY17 to Rs.18,586 Cr in Q2FY18. Non-Interest Income up by 57.85% from Rs.10,146 Cr in Q2FY17 to Rs.16,016 Cr in Q2FY18. Fee Income up by 5.99%, Forex Income up by 5.71%, Recovery in Written-Off Accounts up by 51.31% and Profit on Sale of Investments up by 161.46% YoY Fee Income up from Rs.5,054 Cr in Q2FY17 to Rs.5,357 Cr in Q2FY18, a YoY growth of 5.99 % Operating Income up by 22.42% from Rs,28,265 Cr in Q2FY17 to Rs.34,602 Cr in Q2FY18 Increase in Operating Expenses contained at 2.28% YoY.

PROFITABILITY

Total Interest Income remained flat at Rs.54,850 Cr in Q2FY18 against Rs.54,820 Cr in Q2FY17 Total Interest Expenses down by 1.19% YoY from Rs.36,701 Cr in Q2FY17 to Rs.36,264 Cr in Q2FY18. Interest Expenses on Deposits down by 1.28% YoY from Rs.34,421 Cr in Q2FY17 to Rs.33,980 Cr in Q2FY18 despite a growth of 10.27% in Deposits. Increase in Operating Expenses contained at 2.28% YoY from Rs.14,277 Cr in Q2FY17 to Rs.14,603 Cr in Q2FY18. Staff Expenses down by 7.19% YoY from Rs.8,300 Cr in Q2FY17 to Rs.7,703 Cr in Q2FY18. Overheads up by 15.43% YoY from Rs.5,977 Cr in Q2FY17 to Rs.6,900 Cr in Q2FY18 mainly due to 26.09% increase in Tech-related expenses and 44.80% increase in Depreciation.

H1FY18 OVER H1FY17

Net Profit of Rs.3,587 Cr in H1FY18 up by 2061% YoY Operating Profit (excluding exceptional and one-time items) up by 1.96% from Rs.25,928 Cr in H1FY17 to Rs.26,437 Cr in H1FY18 Interest Expenses on Deposits up by 1.35% YoY from Rs.68,052 Cr in H1FY17 to Rs.68,970 Cr in H1FY18 despite a growth of 10.27% in Deposits.

Non Interest Income up by 27.05% YoY from Rs.18,908 Cr in H1FY17 to Rs.24,022 Cr in H1FY18. Fee Income up by 10.62% from Rs.9,245 Cr in H1FY17 to Rs.10,227 Cr in H1FY18 Staff Expenses down by 4.07% YoY from Rs.16,082 Cr in H1FY17 to Rs. 15,428 Cr in H1FY18 Increase in Operating Expenses contained at 2.97% YoY from Rs.27,522 Cr in H1FY17 to


Rs.28,340 Cr in H1FY18. ]DEPOSITS

Deposits of the Bank grew by 10.27% YoY from Rs.23,78,956 Cr as on September 16 to Rs.26,23,180 Cr as on September 17 Savings Bank Deposits grew by 22.07% YoY from Rs.7,94,515 Cr as on September 16 to Rs.9,69,833 Cr as on September 17 Current Account Deposits grew by 16.02% YoY from Rs.1,41,481 Cr as on September 16 to Rs.1,64,149 Cr as on September 17 CASA Deposits grew by 21.15% YoY from Rs.9,35,996 Cr as on September 16 to Rs.11,33,983 Cr as on September 17 Retail Term Deposits grew by 10% YoY from Rs.11,09,148 Cr as on September 2016 to Rs.12,20,115 Cr as on September 2017 Market Share in Domestic Deposits up by 28 bps from 22.78% as on September 16 to 23.06% as on September 17.

ADVANCES

Gross Advances grew by 0.95% YoY from Rs.18,74,715 Cr as on September 16 to Rs.18,92,440 Cr as on September 17 . Retail Advances grew by 13.05% YoY from Rs.4,46,517 Cr as on September 16 to Rs.5,04,777 Cr as on September 17. Home loans grew by 12.71% from Rs.2,57,699 Cr as on September 16 to Rs.2,90,450 Cr as on September 17. Agri Advances grew by 2.37% YoY from Rs.1,86,806 Cr as on September 16 to Rs.1,91,238 Cr as on September 17 International Advances grew by 4.22% YoY from Rs.2,80,082 Cr as on September 16 to Rs.2,91,894 Cr as on September 17. Gross NPAs declined from Rs.1,88,068 Cr as on June 2017 to Rs.1,86,115 Cr as on September 2017, while it increased from Rs.1,59,806 Cr as on September 16

KEY FINANCIAL RATIOS

Return on Equity improved to 4.23% as on September 2017 against -0.22% as on Sept 16. Return on Assets improved to 0.22% as on September 2017 against -0.01% as on Sept 16. Average Cost of Deposits declined by 65 bps from 6.07% as on Sept 16 to 5.42% as on Sept 17 and by 12 bps sequentially from 5.54% as on June 17. Average Yield on Advances declined by 108 bps from 9.54% as on Sept 16 to 8.46% as on Sept 17 and by 3 bps sequentially from 8.49 % as on June 17. Cost to Income Ratio (excluding exceptional and one-time items) remained flat at 51% CASA Ratio was healthy at 44.88% as on September 17, up from 40.90% as on September 16, a growth of 398 bps YoY. The daily average CASA Ratio was at 43.93% as on Sept 17.


Net Interest Margin (Domestic) up by 9 bps sequentially from 2.50% as on June 2017 to 2.59% as on September 2017 while it declined by 39 bps YoY from 2.98% as on Sept 16

Performance of SBI Group Return on Equity up by 444 bps from 1.27% as on September 16 to 5.71% as on Sept 17 while it declined by 140 bps from 7.11% sequentially. Return on Assets up by 22 bps from 0.07% as on September 16 to 0.29% as on Sept 17 while it declined by 7 bps from 0.36% sequentially Gross NPA Ratio for SBI Group up from 8.49% as on September 16 to 9.75% as on September 17, while Net NPA Ratio is up from 5.10% as on September 16 to 5.39% as on September 17. Net Profit (after minority interest) of SBI Group increased from Rs.1067 Cr in H1FY17 to Rs.4872 Cr in H1FY18 (357% YoY).

The Operating Profit and Cost to Income Ratio as above have been adjusted for exceptional and one-time items. However, Non-Interest Income, Fee Income, Operating Income and Profit on Sale of Investments are given inclusive of exceptional and one-time items.


TEST PATTERNTRAINEE OFFICER CHANNEL

SECTION – 1 : QUESTIONS – 120 TIME LIMIT : 120 MINUTESS.No. Particulars No. of

QuestionsMarks

1 General Awareness about Banking Environment, KYC, Legal Issues

20 10

2 General Banking Handling of Customer Grievances and Preventive Vigilance (The test will contain passages relating to practical day-to-day situations in branches / offices, about 10-15 lines with 5 objective questions on each passage to identify the best option)

20 20

3 Knowledge about products & services of our Bank including retail finance, our associates & subsidiaries and of other banks. (Focus on USPs of our products and services) and Financial Inclusion.

20 20

4 Knowledge of CGS and other IT products in use in the Bank and IT related security concerns

20 15

5 Alternate Channels Products 20 106 Latest Financial results, performance indicators of the Bank

and Productivity & profitability related concerns of the Bank, Organizational Structure and History

20 5

SECTION – 2 (Qualifying marks 50% for General & 45% for SC/STs)TIME LIMIT : 30 MINUTES

1 Writing Essay on banking related topics (250 words)(For evaluating comprehension skill and communication skill)

1 out of 3 20

TOTAL (Overall qualifying marks)65% for General Category 60% for SC / ST Category

121 100

JMGS - I CHANNELSECTION – 1 : QUESTIONS – 140 TIME LIMIT : 150 MINUTES

S.No. Particulars No. of Questions

Marks

1 General Banking, KYC, Legal Issues, System & Procedures 50 252 CBS & Computer Awareness, Computer Security related 20 153 Products & Services of the Bank, Associates & Subsidiaries,

Other Banks, Alternate Channel & IT Products, Financial Inclusion.

30 15

4 Latest Financial Results, Performance indicators of the Bank and productivity & profitability related concerns of the Bank

10 5

5 Objective type questions on practical problems in General 10 10


Banking6 General Awareness 10 107 Organisational Structure & Policy guidelines of the Bank 10 10

TOTAL 140 100MMGS - II CHANNEL

SECTION – 1 : QUESTIONS – 150 TIME LIMIT : 120 MINUTESS.No

Particulars No. of Questions

Marks

1 Product Features – Deposit / Liability Products 20 102 Product Features – Advances / Asset Product 20 103 IT Channels, Payment Solutions, Transaction Products etc. and

questions on other new initiatives10 5

4 Systems & Procedures in Branches and CPCs (both System and Manual), Organizational Structure and questions related to HR area

20 10

5 Forex / Treasury / International Banking 5 2.56 Government Business, Cross Selling Products and Financial

Inclusion15 7.5

7 Laws relevant to Banks 15 7.58 Macro-Economic environment / General Awareness 10 59 Pre-sanction / Post sanction processes & NPA Management in

Loans and Advances15 7.5

10 English Language Comprehension 20 10MMGS - III CHANNEL

SECTION – 1 : QUESTIONS – 140 TIME LIMIT : 100 MINUTESS.No

ParticularsSECTION - I

No. of Questions

Marks

1 Product Features – Deposit / LiabilityProduct Features – Advances / Assets

1515

7.57.5

2 IT Channels, Payment Solutions, Transaction Products etc. and questions on other new initiatives

10 5

3 Systems and Procedure in branches and CPCs (both system & Manual), Organisational Structure & questions related to HR Area

20 10

4 Fores / Treasury / IB 5 2.55 Government Business, Cross Selling Products and Financial

Inclusion15 7.5

6 Laws relevant to Banks 15 7.5


7 Macro-Economic Environment / General Awareness 10 58 Pre-sanction / Post-sanction & NPA Mgmt in Loans & Advances 15 7.59 Supervisory Role and Responsibilities 10 510 Data Interpretation 10 5

SUB TOTAL 140 70SECTION – II : DESCRIPTIVE QUESTIONS

1 Rationale (Out of 6) 4 82 For & Against (Out of 6) 4 83 Situational Analysis (Out of 3) 2 64 Comprehension (4 Questions) 1 45 Business Correspondence (Out of 2) 1 4

SUB TOTAL : DESCRIPTIVE 30TOTAL 100


GENERAL AWARENESS Compiled by- Sh. Rakesh Jain CM -Training

1. The World Economic Forum (WEF) has ranked India at __ position among 100 countries on its Global Manufacturing Index (GMI)a) 10th b) 20th c) 30thd) 33rd

2. World Economic Forum headquarter is ata) Genevab) Londonc) Parisd) Berlin

3. World Economic Forum incorporated ina) 1961b) 1971c) 2005d) None of above

4. Indai-INX is India'sa) First International Exchangeb) IT hub C) Computer software companyd) None of above

5. Indai-INX established ata) Parel, Mumbaib) Punec) Delhid)Gandhinagar

6. Indai-INX trades ina) Eequity derivativesb) Currency derivativesc) commodity derivatives including Index and Stocks d) All of abovee) None of above

7. Yara International, fertilizer giant recently did aquisition ofa) Gardha internation plant of ureab) IPL plant of Zinc fertilizerc) Tata Chemical's urea plantd) None of these


8. What is "IPPB"a) Indian public prosecutor bureaub) Indian press publication boardc) Indian Post Payments Bankd) None of above

9. National Payment Corporation of India(NPCI) founded ina) 2001b) 2005c) 2008d) None

10. The main source of National Income of India isa) Service sectorb) Agriculturec) Industrial Sectord) None of above

11. Net National Product of a country isa) GNP minus net income from abroadb)GNP minus depreciation allowance c) GDP minus depreciation allowancesd) GDP plus net income from abroad

12. NNP stands fora) National New productb) Net New productc) Net National Productd) Net National Income

13. Real national income growth refers toa) National income growth adjusted foer saving growthb) National income growth adjusted for depreciation ratec) National income growth adjusted for population growthd) National income growth adjusted for inflation

14. GNP stands for a) Gross National Productb) Grand Nuclear Processc) Group Net Productd) Group Networking Process

15. Mixed economy meansa) Co-existence of the rich and the poorb) Co-existence of public and private sectors c) Co- existence of small and large industriesd) Promoting both agriculture and industries in economy


16. Increased interest rates, as is existing in the economy at present, willa) Lead to lower GDP growthb) Lead to higher GDP growth c) Mean lower cost of raw materials d) Mean higher cost of raw materials

17. Which of the following is the correct sequence of contribution to gross domestic product in India by the various sectors of the economy in last 10 years?a) Agriculture service industryb) Agriculture industry servicec) Service industry agricultured) Service agriculture industry

18. GDP at factor cost isa) GDP minus indirect taxes plus subsidiesb) GNP minus subsidies plus indirect taxesc) GNP plus inflation rated) NNP plus depreciation allowance

19. Per capita income is obtained by dividing national income bya) Area of the countryb) Total working populationc) Volume of the capital usedd) Total population of the country

20. Which sectors of Indian Economy contributes largest to the gross national product?a) Tertiary sectorb) Secondary sectorc) Primary sectord) Public sector

21. Which of the following is not included in the estimates of National Income?a) Sale of collector's itemsb) Cost of government servicesc) Market rent of self-owned housed) Addition to inventory, but not sale of the company's products

22. When the growth of GDP in a country slows down suddenly, people start losing their jobs and the situation continues several weeks, this state of economy is known as:a) Economic boomb) Recessionc) Inflationd) Deflation

23. In India, the National Income is measured on the basis of-a) Flow of goods only


b) Number of employed youth onlyc) Volume of tax collected per annumd) Earning of people working in PSUs and government jobse) All of the above

24. Which of the following is not an apex institute?a) SBIb) NABARDc) SIDBId) State Cooperative Bank

25. The team'Gross National Happiness' was coined by-a) European Unionb) Maqbool Hoquec) Bhutan's kingd) Amartya Sen

26. Who amongest the following economists gave the concept of 'economies of scale' which says 'many goods and services' can be produced more cheaply in long series?a) Paul Krungmanb) Edmund S Phelpsc) Gary S Beckerd) Amartya Sen

27. Which of the following is a major concept frequently referred in the economic literature of Nobel laureate Dr. Amartya Sen?a) Capability to functionb). Corporate ethicsc). Negative freedomd). Positive freedome). Welfare economics

28. As per NITI Aayog, Economy expected to grow in fiscal year (2017-18) by__________a)7.1%b)7.2%c)7.3%d)7.4%e)7.5% 29. Transfer of any instrument to another person by signing on its back or face or on a slip of paper attached to it is known as_______________a)Promissory Noteb)Bill of ladingc)Bill of Exchanged)Endorsemente)None of these


30. In the Acronym INFINET, F Stands for____________A. FinancialB. FixedC. FinanceD. FinancingE. None of these

31. On which of the following Committee’s recommendation NABARD was established?A. Narsimham CommitteeB. Shivraman CommitteeC. Mudgal CommitteeD. Malhotra CommitteeE. None of these

32. Kisan Cards can be used for financing____________A. Production NeedsB. Consumption NeedsC. Working Capital NeedsD. both A and BE. both B and C 33. Which of the following is the first Joint Stock Bank of India?A. Axis BankB. Allahabad BankC. HDFC BankD. Punjab National BankE. None of these

34. In the acronym NSDL, S stand for?A. SecurityB. SecuritiesC. StockD. ServicesE. None of these 35. Which of the following was the first state to pass GST (Goods and Services Tax)?A. AssamB. DelhiC. SikkimD. a and bE. b and c

36. Which of the following cards are issued by banks and other entities approved by the RBI to pay a merchant for goods and services?A. Credit CardsB. Debit CardsC. Rupay Cards


D. All of theseE. None of these 37. Market Regulator SEBI (Securities Exchange Board of India) was established in which of the following year?A. 1988B. 1990C. 1991D. 1992E. 1994

38. Recurring Deposit Account is opened by those who want to save small amount for a certain period of time and earn higher rate of interest. What is the maximum period for the recurring deposit__________________A. 10 yearsB. 5 yearsC. 8 yearsD. 12 yearsE. 15 years

39. ________________is a certificate issued by more than one country for shares in foreign country. The shares are held by the international branch of foreign bank.A. American Depository ReceiptB. Global Depository ReceiptC. Masala BondsD. Junk BondsE. None of these

40. Basel Norms are set of recommendations for regulating banking industry in world. In India RBI (Reserve Bank of India) has extended the timeline for full implementation of Basel III capital regulation by year_________________A. 2017B. 2018C. 2019D. 2020E. 2021

41. A physically institutionalized set up where instruments of stock market. Presently in India there are________________ stock exchangesA. 20B. 23C. 25D. 30E. 21

42. IFSC is an alphanumeric code that uniquely identifies a bank branch participating in two electronic fund transfer systems. How many characters are there in IFSC code?


A. 11B. 9C. 8D. 15E. 10

43. In the acronym CIBIL, C stand for?A. CreditB. CorporateC. CapitalD. CapitalizationE. None of these

44. Union Government setup interdisciplinary committee to examine framework for virtual currencies, the committee is chaired by______A. Arun jaitleyB. Raman RoyC. Siddhartha UpadhyayD. Dinesh SharmaE. None of these

45. An account which is held by the third party is known as __________A. Nostro AccountB. Vostro AccountC. Escrow AccountD. Recurring AccountE. None of these

46. Masala Bonds can be borrowed in which of the following currency?A. RupeeB. DollarC. PoundD. YenE. Euro

47. Apart from its 5 associates which other bank has been merged with SBI?A. Bank of IndiaB. Oriental Bank of CommerceC. Bank of BarodaD. Bhartiya Mahila BankE. None of these

48. In which of the following year Banking Regulation Act was enacted?A. 1945B. 1946C. 1947D. 1948


E. 1949

49. According to the government norms the Banks importing gold and precious metals will have to pay ______________tax under the GST which can be claimed as input tax creditA. 1%B. 2%C. 3%D. 4%E. 5%

50. Which of the following is the first bank to introduce block chain technology?A. Canara BankB. HSBCC. ICICI BankD. State Bank of IndiaE. None of these

51. In the acronym AQR, A stands for?A. AssetB. AssociationC. AssociatedD. AccountE. None of these

52. Which of the following is a component of unorganized money market?A. Indigenous BankersB. Mutual FundsC. BrokersD. All of aboveE. None of these

53. Which of the following application is launched by State Bank of India (SBI)?A. BuddyB. BatuaC. MobicashD. All of theseE. None of these

54. According to ADB India is expected to achieve the projected growth rate of 7.4% in 2017 and further up __________in 2018.A. 7.2%B. 7.3%C. 7.5%D. 7.6%E. 7.9%

55. Recently which of the following Bank is offering personal loan up to Rs 15 lakh up to


through its ATMs?A. Axis BankB. Yes BankC. Co-operative BankD. Kotak Mahindra BankE. ICICI Bank

56. Which of the following Bank is the First Regional Rural Bank of India?A. Punjab Gramin BankB. Prathama BankC. Sutlej Gramin BankD. Utkal Grameen BankE. None of these

57. “Together we can” is the tagline of which of the following bank?A. Canara BankB. IDBI BankC. Dena BankD. UCO BankE. Oriental Bank of Commerce

58. As per the RBI, all Asset Reconstruction Companies(ARC) must have minimum Net Owned Fund(NOF) of________________A. Rs 500 croreB. Rs 400 croreC. Rs 300 croreD. Rs 100 croreE. None of these

59. Securities Exchange Board of India (SEBI) has barred resident as well as Non residents from making investments through P-Notes, In P-Notes what does P stands for?A. Participatory NotesB. Promissory NotesC. Only option AD. Only option BE. Both A and B

60. ______________launches Digital Gold which allows customers to buy and sell gold through electronic platform.A. Ali BabaB. PaytmC. Flip cartD. Snap dealE. Amazon 61. 4th National Standards Conclave was organized in _______________ with the objective to bring awareness and prepare industries


A. MumbaiB. BangaloreC. New DelhiD. PuneE. Kerala

62. In the acronym IBBI, first I stand for?A. InsolvencyB. InvestmentC. InformationD. IndustriesE. None of these

63. Where is the AIIB (Asian Infrastructure Investment Bank)?A. BeijingB. ShangaiC .BaselD. NewyorkE. Manila

64. E-SOT cards launched for which of the following schemes?A. Pradhan Mantri Suraksha YojanaB. Atal Pension YojanaC. Pradhan Mantri Jeevan Jyoti Bima YojanaD. SAMPADA SchemeE. None of these

65. As per the Ernst & Young India rank ______ among 41 countries in corruption in businessA. 5thB. 6thC. 7thD. 8thE. 9th 66. Which of the following largest commercial bank in India?A. State Bank of IndiaB. Punjab National Bank of IndiaC. Bank of MaharashtraD. Reserve Bank of IndiaE. None of above

67. Who is the present CEO of World Bank?A. Jim Yong KimB. Takehiko NakaoC. Roberto AzevedoD. Christine LagardeE. Kristaliana Georgieva


68. Which of the following bonds are also known as “redeemable bonds”?A. Corporate BondsB. Callable BondsC. Term BondD. Government BondsE. None of these

69. In order to enter into RTGS transactions the bank must have ____________ which is assigned to enable bank and branchesA. SWIFT CodeB. CBSC. CRRD. All of aboveE. None of these

70. In the acronym CARE, C stand for______________A. CoreB. CreditC. CommonD. CurrencyE. None of these

71. Market Regulator SEBI (Securities Exchange Board of India) was established in which of the following year?A.1988B.1990C.1992D.1994E.1995 72. In which of the following condition a firm can be said be highly leveraged?A. When proportion of debt in capital is more than equityB. When proportion of debt in capital is less than equityC. When proportion of debt and equity is same in capitalD. All above optionsEAny other condition 73. What is the full form of CRISIL?A. Credit Rating and Information Services of IndiaB. Credit Rating and Investment Services of IndiaC. Credit Rate and Interbank Services of IndiaD. Credit Rate and Interbank Systems of IndiaE. None of these 74. Under which of the following section of the Banking Regulation Act 1949 RBI (Reserve Bank of India) grants license for the commencement of the banking business?A. 20


B. 21C. 22D. 22(1)E. 24 75. ____________ is an agreement where investor has given a right to sell shares and bonds at a specified price and within a specified period.A. Repurchase AgreementB. Call OptionC. Put OptionD. Bill of ExchangeE. Call Money

76. National Payments Corporation of India developed mobile application named BHIM, how many languages in BHIM application available?A.8B.10C.12D.14E.15

77. Which of the following is the tagline of Oriental Bank of Commerce?A. The name you can bank uponB. Where service is the way of lifeC. Where every individual is committedD. With you all the wayE. Pure Banking, Nothing else

78. Recently Reserve Bank of India (RBI) imposed a penalty of Rs 5 crore on which of the following bank for non-compliance with its directions on Know Your Customer (KYC)” norms Cheque Purchase or Discounting and Bill Discounting?A. Syndicate BankB. Punjab National BankC. Canara BankD. UCO BankE. None of these 79. Which of the following bank has recently signed an agreement with Escorts Ltd. to finance farmers for purchase of Escorts tractors?A. Punjab and Sind BankB. Indian BankC. State Bank of IndiaD. Bank of BarodaE. Dena Bank

80. How many digits are there in MICR (Magnetic Ink Character Recognition) Code?A.9


B.10C.11D.12E.None of these 81. Which of the following are the measures to tackle NPAs?A. Lok AdalatsB. Recovery through DRTC. Recovery through SARFAESID. All of theseE. None of these

82. In the acronym DRT, R stands for ?A. RecoveryB. ReinvestmentC. RateD. ReconstructionE. None of these

83. If a cheque is presented for payment after three months from the date of the cheque it is known as _______________?A. Post Dated ChequeB. Stale ChequeC. Anti Dated ChequeD. Crossed ChequeE. None of these 84. In which of the following year first mutual fund was started in India?A.1961B.1962C.1963D.1964E.1965

85. “Good People to grow with” is the tagline of which of the following bank?A. Union Bank of IndiaB. Indian Overseas BankC. Syndicate BankD. UCO BankE. None of these 86. In RTGS (Real Time Gross Settlement), the minimum limit for the transfer of money is ________________A. Rs 50000B. Rs 100,000C. Rs 200,000D. Rs 250,000


E. No limit

87. Which of the following service is not provided by the Retail banks?A. Fund Based ServicesB. Providing personal loansC. Providing Debit CardsD. Providing Credit CardsE. None of these


ACCOUNT OPENING & KYC Compiled by- Sh. Deepak Swami CM -Training

1. Under KYC norms, Ration card can be accepted as a proof ofa) Identity b) Address c) Can not acceptedd) None of these

2. Nomination for Bank Deposits has been provided undera) Sec-45-ZA of Banking Regulation Actb) Sec-45-A of RBI Actc) Sec-35 of RBI Actd) None of these

3. What is the name of the person appointed by the Court when there is a compulsory winding up of the company?a) Liquidatorb) Official Liquidatorc) Administratord) None of these

4. What is MRFTP?a) Market Related Funds Transfer Pricingb) Mall Rent Financing To the Productc) Market Related Financing To Productsd) Month end Records For Transfer Pricing

5. In our Bank, MRFTP is applicable toa) CAG Branches onlyb) MCG Branches only c)All Domestic Branchesd) Foreign Office only

6. All inoperative accounts may be classified as _____ Riska) Lowb) Mediumc) Highd) None

7. What is the name of mobile cash wallet issued by SBI?a) State Bank Cash Cardb) State Bank of India-Mobile Cashc) SBI Mobi-cashd) State Bank Mobi Cash

8. Issue of probate will be governed by which act?


9. a) Indian Contract Actb) NI Actc) Company Actd) Indian Succession Act

10. Cheques/ Bankers Cheques/ Demand Drafts/ Pay orders can be paid when presented for payment, if the date of issue is withina) 6 Months b) 9 Monthsc) 12 Monthsd) 3 Months

11. Bank Records are preserved as per Sectiona) 45-Y of NI Actb) 45-Y of BR Actc) 45-Y of RBI Act d) 45-Y of SBI Act

12. Testing for Fugitive ink used for Background printing is compulsory in cheques ofa) Rs.25000 & aboveb) Rs.50000 & abovec) Rs.100000 & aboved) All cheques

13. KYC, AML & CFT guidelines are issued under ______ act.a) KYC Actb) PMLA 2002c) BR Actd) NI Act

14. The Anti-Money Laundering Cell of the Bank has been established ata) Jaipurb) Nagpurc) Bhubanesward) New Delhi

15. The Software used for generation of Suspicious Transactions Report is known asa) E-KYCb) AMLOCKc) E-BANCSd) E-AML

16. Which is not one of the documents from the Officially Valid Documents list a) Post office IDb) PAN Cardc) Driving Licensed) Aadhar


17. For Low risk customers, Customer Identification data should be updated once in years.a) 3b) 4c) 10d) 8

18. Counterfeit Currency Reports should be submitted toa) LHO KYC Depttb) Controlling Officec) FIU-INDd) None of the above

19. CFT stands fora) Combating Financial Terrorismb) Criminal Fund Transferc) Criminal Financial Transactionsd) Codes For Transactions

20. For high risk customers, Customer Identification data should be updated once in years.a) 3b) 4c) 2d) 8

21. For Medium risk customers, Customer Identification data should be updated once in years.a) 3b) 4c) 10d) 8

22. Which of the following transactions are exempted from KYC guidelines?a) Customer to Customer domestic fund transferb) Cross Boarder Customer to Customer electronic funds transferc) Inter Bank funds transfer where both the senders and receivers are Banks.d) None of the above

23. Sale of gold coins of value Rs _________ and above against cash is not permitted.a) 150,000 b) 20,000c) 100,000d) 50,000

24. New accounts of individuals opened under Low Risk while on boarding, during first ____ months of opening the account are classified as medium risk.a) 3


b) 6c) 9d) 12

25. Individual Account holder with Credit/debit summations of Rs. 2.00 crores & more per annum are categorised as _____ risk customers.a) Highb) Mediumc) Lowd) None of these

26. Accounts of Non face to face customers can be opened by a bank on the basis of ID &Residential proof certified bya) Notary Publicb) Official of Indian Embassyc) Foreign Bank Branchd) Any of the above

27. Clubs are entitled to open SB A/C ifa) Income of Club is exempted from Tax b) Farmer's Club as Vikas Volunteer Vahinic) Both a & bd) None

28. Non-Individual accounts with credit/debit summations of Rs. 1.5 crore p. a. is classified as _____ risk account.a) HIighb) Mediumc) Lowd) None of these

29. Ceiling for remittance of funds by IOI against cash isa) Less than Rs.50,000 b) Less than Rs.10,000c) Less than Rs.20,000d) Less than Rs.100,000

30. Cash Transaction Reports (CTRs) are required to be compiled by branches and submitted to Controllers for onward transmission to FIU-IND at __________intervals.a) Weeklyb) Fortnightlyc) Monthlyd) Bimonthly

31. The full form of USSD isa) Unstructured supplementary service datab) Unified supplementary service data


c) Unstructured supplementary system datad) Uniform supplementary service data


P SEGMENT Compiled by- Sh. Rakesh Jain CM -Training

1. What is Maximum loan amount under Pensioner's Pension loan schemea) 18 months Pension b) Maximum Rs.14 lacsc) Both (a) & (b)d) None of the above

2. Apart from “PAN Verification, the Xpress Credit proposals should be processed through ‘LOS’ without any exception to ensure ………a) CIBIL Defaulters b) Validation under Risk Scoringc) De-dupe Check d) All of these

3. What is the Minimum & Maximum loan amount under Xpress Credit Overdrafta) Rs.5 lacs & Rs.15 lacs b) Rs.15 lacs & Rs.20 lacsc) Rs.1 lac & Rs.15 lacsd) None of these

4. Under Xpress Credit Scheme, what is Minimum & Maximum repayment period a) 6 months & 60 months b) 24 months & 60 monthsc) 12 months & 60 months d) None of the above

5. The product name, which made with a view to further increase our market share in the Unsecured Personal Loans, launched under Xpress Credit Loan Scheme, especially designed for Senior Officials working in Central/ State Governments establishments, Quasi Government Bodies, PSUs, Defence.a) Xpress Elite b) Xpress Delightc) Xpress Premiumd) Xpress Pride

6. Prepayment penalty applicable in Xpress Credit?a) Rs.10,000/- b) 3% on the prepaid amount c) 2% on the prepaid amountd) No Prepayment penalty

7. What is the Minimum and Maximum Loan under Xpress Elite Product?a) Rs.3.00 Lakhs & Rs.20.00 Lakhs b) Rs.4.00 Lakhs & Rs.20.00 Lakhsc) Rs.5.00 Lakhs & Rs.20.00 Lakhs d) Rs.3.00 Lakhs & Rs.15.00 Lakhs


6. What is Maximum age limit at the time of full repayment for Pensioners & Family pensioners ?a) 78 years b) 80 yearsc) 84 years d) None of these

9. For availing Pension loan maximum age is-a) 70 years of age b) 76 years of agec) 72 years of age d) None of these

10. Maximum loan available under Pension loan scheme for pensioners ?a) 18 months Pension b) Maximum Rs.14 lacsc) Both of the above d) None of the above

11. How much margin is required by pensioner while availing a pension loan?a) 5% b) 20%c) 15% d )No margin

12. What is loan amount, minimum available under Pension loan for Pensioners & Family pensioners?a) Rs.50,000/- b) Rs.25,000/-c) Rs.1,00,000/- d) 10%

13. Total maximum number of Demand Loans can be sanctioned against same TDR/STDR within the overall permissible amount?a) One b) Twoc) Three d) Four

14. The maximum Gold Loan amount that can be sanctioned under SBI PersonalGold Loana) Rs.1.00 lac b) Rs.5.00 lacsc) Rs.20.00 lacs d) No limit


15. Maximum period of repayment available under Personal Gold Loan?a) 36 months b) 30 monthsc) 12 months d) None of these

16. Kind of Charge created on Shares/ debentures?a) Pledge b) Hypothecationc) Assignment d) None of these

17. What is the maximum repayment period of loan sanctioned against sharesa) 24 months b) 60 monthsc) 36 months d) 30 months

18. The surrender value of an LIC policy is Rs 2,00,000/-. How much loan can besanctioned?a) 150000/- b) 180000/-c) 200000/- d) 175000/-

19. Under the SBI Flexipay Home Loan scheme, 20% higher home loan amount than the eligibility calculated through EMI/NMI method has been permitted to young salaried customers having age bucket of more than or equal to_______ and less than or equal to______.a) 18 & 40 yrsb) 18 & 40yrsc) 21&45 yearsd) 21 & 40 yrs

20. Minimum and maximum loan amount available under SBI Topup Loan area) Rs.50,000 and Rs.2 Crsb) Rs.75000 & Rs.2 crsc) Rs.2lacs & Rs.5crsd) Rs.50000 & Rs.1cr

21. For furnishings / consumer durable in a house, maximum Home Loan that can be given is 10% of the project cost or _____ whichever is lessa) Rs. 25 lacsb) 20lacsc) 10 lacsd) 15 yrs


22. Home loan may be sanctioned for reimbursement of investment made by the borrower in house from own resources during the preceding _____ with minimum margin of 25 percenta) 6mthsb) 12 Monthsc) 18 mthsd) 24mths

23. Loan amount maximum limit for Used Car Loans isa) Rs. 05Lacsb) Rs.15 lacsc) Rs.10 lacsd) no limit

24. Maximum cost of car accessories, which can be financed isa) Lower of 5% of cost of vehicle or Rs. 100,000b) Lower of 10% of cost of vehicle or Rs.100000c) Lower of 5% of cost of vehicle or Rs.50000d) Lower of 10% of cost of vehicle or Rs.50000

25. Home loan should be repaid before the borrower attains the age ofa) 70 Yearsb) 65 yrsc) 62 yrsd) 60yrs

26. Under SBI Student Loan scheme, up to which amount, advance considered under Priority Sector advances, for India and Abroad-a) Rs.5lacs/Rs.10lacsb) Rs.15 Lacs/ Rs.25 Lacsc) Rs.10Lacs/ Rs.20Lacsd) Rs.10lacs/Rs.30lacs

27. What is maximum amount available under SBI Scholar loan for List A institutions without collateral securitya) No limitb) Rs.20 lacsc) Rs. 50 Lacsd) Rs.25 lacs

28. The maximum amount that can be sanctioned under Xpress credit scheme isa) Rs.10lacsb) Rs. 15 Lacsc) Rs.7.5lacsd) Rs.5lacs

29. Pension loan is considered up to the age ofa) 76 Years


b) 72yrsc) 62yrsd) 58yrs

30. In the case of Bridge loan, the condition relating to NMI is that Minimum NMI should be-a) 120% of monthly int.b) Rs 100000/c) 150% of Monthly Intd) None of these

31. SBI Shaurya Home Loan scheme is available for which sector's employee-a) Govt, public sector employees with pensionable serviceb) Defence personnelc) All salaried employeesd) None

32. Margin for SBI Student Loan above Rs 4 lacsa) 5% for studies in India and 15 % for studies in abroad.b) 5% for all studiesc) No Margind) None of above.

33. Security for Ed Vantage Educational Loan Scheme isa) 110% of the loan plus 5 years simple interestb) 100 % of liquid collateralc) a or bd) None.

34. Minimum NET Annual Income required for Salaried Person for Car Loana) Rs 3.50 lacsb) Rs 3.00 lacsc) Rs 2.50 lacsd) Rs 2.00 lacs

35. Maximum loan amount that can be sanctioned under “SBI Realty” purchase of plot of land for house construction isa. Rs. 15 Croresb. Rs.25 crsc. Rs.5 crsd. No limit

36. The Minimum age criteria for sanctioning Housing Loan isa. 18 Yearsb. 19 yrsc. 20 yrsd. 21yrs


37. Loan sanctioned under “SBI Realty” is repayable maximum in how many months commencingfrom the month following the month of disbursement of the loan.a. 60mthsb. 180 mthsc. 120 Monthsd. 240 mths

38. Maximum permissible EMI/NMI Ratio for individual having Net Annual Income more than Rs. 10 Lacs is-a. 60%b. 70 %c. 50%d. 40%

39. What is the Minimum Home Loan amount that may be sanctioned under ‘SBI-Maxgain’.a. Rs.2lacsb. Rs.5lacsc. Rs.10Lacsd. None

40. Home Loan sanctioned under “SBI-Tribal Plus” is repayable in maximum of how many years?a. 15Yrsb. 20 yrsc. 5yrsd. 10yrs

41. What is the Maximum Home Loan to people residing in Hilly/Tribal areas under SBI-Tribal Plusa. Rs.5lacsb. Rs. 10 Lacsc. Rs.15 lacsd. Rs.20 lacs

42. The minimum loan amount,for sanction of Home loan under SBI Home Loan PAL (Pre-Approved Limit) scheme, is-a. Rs.5 lacsb. Rs.2 lacsc. Rs. 10 Lacsd. Rs.1 lacs

43. Interest subsidy scheme on education loan for economically weaker section proposed by ministry of HRD, govt. of India education loans for eligible students for studies in India upto a maximum limit of ______ would be eligible for interest subsidya.Rs. 10 Lacsb. Rs.5 lacs


c. Rs.2 lacsd. No limit

44. Validity period of Home loans sanctioned under PAL (Pre-Approved Limit) schemea. 6mthb.12 mthsc. 3 mthsd. 4 Months

45. Education Loan applications have to be disposed of within how many days as per Finance Ministry guidelines,a. 1monthb. 7 Daysc.15 daysd. No limit

46. Under SBI Flexipay Home Loan,Normal EMI Repayment will start froma.36th monthb.35th monthc.37th monthd.30th month

47. Under Student Loan Scheme, what is the maximum limit that can be sanctioned for Abroad studiesa.Rs. 30 Lacsb.Rs.25 lacsc.Rs.20 lacsd.Rs.15 lacsz

48. Under the Reverse Mortgage loan, the residual life of property should be at least _____ years in case of single borrower and ____ years in case of spouse being below 60 years of agea.20 & 40 yearsb.30 & 35yrsc.20 & 25yrsd.20& 30yrs

49. Under Student Loan Scheme, Cost of a two-wheeler upto ________can be included in theexpenses considered eligible for finance where the loan amount is secured by a suitable third party bguarantee and/or tangible collateral securitya.Rs.15000b.Rs.25000c.Rs.50,000d.Rs.75000

50. Maximum loan amount that is allowed under Insta Top up Loan scheme is a 2 lacs


b) 5% of Loan Limit Maximum Rs 5 lacsc) 1 lacd) 10 lacs

51. What is Maximum Loan under Loan Against Property in Non BPR Centrea) Rs 1 crb) Rs 2 Crc) Rs 5 crd) Rs 10 cr

52. Nature of facility under Insta Top Up loana) Term Loanb) Overdraftc) Cash Creditd) Demand Loan

53. What is Maximum loan available under SBI Privilege and SBI Shauriya Home Loan schemesa) Rs 10 crb) Rs 50 crc) Rs 25 crd) Rs 20 cr

54. What is Minimum Loan that can be given by way of OVERDRAFT under Xpress credit scheme?a) Rs 5 lacsb) Rs 10 lacsc) Rs 25000/d) None

55. What is the purpose of Bridge loan?a) To meet the shortfall in buying a New Home/Flat in addition to the Home Loanb) To buy a New House without availing Home Loan and by mortgaging the existing propertyc) a & bd) None.

56. Loan against NSC may be given to the extent ofa) 65% of Face valueb) 60 % of Face value and Accrued Intc) 70% of face value & Accrued intd) None

57. In SBI Scholar Loan the Margin for Loans between 4 lacs to 7.5 lacsa) 15%b) 5%c) 10%d) None


58. Maximum loan that can be given for used carsa) Rs 10 lacsb) Rs 5 lacsc) Rs 15 lacsd) None

59. For giving loan for used cars the age of the car should not be more thana) 3 yearsb) 4 yearsc) 5 yearsd) None

60. Top up offer under SBI Holiday Savings Account‖ would be given by which travel management companya)Sterling Holidaysb)Yatra.comc)Cox & Kingsd)Thomas Cook India

61. Maximum age limit for opening a Yuva SB Accounta) 45 b) 30c) 28d) 21

62. The minimum deposit requirement in term deposit under the MOD scheme isa) Rs.5, 000/- b) Rs.7, 000/-c) Rs.10, 000/- d) Rs. 20,000/-

63. Which document will serve as proof in both address as well as identity, for KYCCompliance in opening new accounts as per recent guidelines if the address provided bythe account holder is same as that on document.a) Election I-Card b) Pension Payment orderc) Passport d) Adhar Card (UID) e) all of these

64. Minimum age limit to open a Yuva SB Account isa) 28 b) 30 c) 18 d) 21


65. Minimum & maximum period for CLTD under Surabhi Deposit Schemea) 12 & 24 months b) 12 & 48 Months c) 12 & 36Months d) None of these

66. SBI launched SB-CUM-OD on which producta) RINB channel b) Kiosk Banking channelc) CINB channel d) None of the above

67. The minimum deposit requirement in term deposit under the MOD scheme isa) Rs.5, 000/- b) Rs.7, 000/- c) Rs.30, 000/- d) Rs. 20,000/-

68. When blind/illiterate depositor is unable to present himself physically to withdraw money,his signature/thumb impression should be attested by :a) A depositor Staff memberb) Staff memberc) Introducer of the A/cd) Two persons known to the Bank in the presence of an authorized official of the Bankat his/her place

69. Minimum threshold amount in Savings Plus account is-a) Rs.15,000 b) Rs.5,000 c) Rs.10,000 d) Rs.25,000

70. Small Account meansa) The aggregate of all credits in a financial year does not exceed rupees one lakh;b) The aggregate of all withdrawals and transfers in a month does not exceed rupeesten thousand;c) The balance at any point of time does not exceed rupees fifty thousand.d) All of these

71. Numbers of debits, allowed free per half year in a SB accounta) 40 b) 30 c) 26 d) No limit

72. The minimum amount of deposit , under Senior Citizen Deposit Scheme is -a) Rs.5,000


b) Rs.10,000 c) Rs.1000 d)Rs. 25,000

73. Minimum Balance require to maintain by an Individual in the Current Account at ruralcenter isa) Rs. 10,000/- b) Rs. 2500/- c) Rs. 3000/- d) Rs.5000

74. Under Senior Citizen Savings Scheme, 2004 if the depositor expires before the maturitythe deposit and the nominee/legal heir approaches the bank for closure of the said depositaccount, the nominee in such case entitled to the benefit of __________rate of interest forthe period from the date of death to the date of closure of the account.a) Bank rate b) State Bank Advance Rate c) Saving Bank Account d) TDR

75. The minimum employees eligibility criteria for covering the employees of a Corporate or a Institutions under our Corporate Salary Package isa) 100 b) 30 c) 200 d) 25

76. As per RBI guidelines an annual review must be conducted to the in SB inoperative accounts where the available balance is more thana) Rs.1,000/- b) Rs.5,000/- c) Rs.10,000/- d) Rs.25,000/-

77. In SME Power pack account Quarterly Average Balance required to be maintained isa) Rs.2.00 lac b) Rs.3.00 lac c) Rs.5.00 lac d) Rs.10.00 lac

78. Which of the following debit entries will be counted for the purpose arriving at the maximum no of entries in a half year in a SB accounta) Withdrawal through State Bank ATMsb) Debit entries on account of service chargesc) Withdrawals through ATMs other than State Bank ATMsd) Transactions through internet banking


79. The Defence Salary Package has how many variants as regards types of accounts areconcerneda) 5 b) 3 c) 4 d) Only single variant

80. Under SBI Gold Deposit, what is the Minimum Quantity of gold that can be depositeda) 50 gms (gross) b) 100 gms (gross)c) 500 gms (net) d) 500 gms (gross)

81. SBI Vishesh status is applicable on customer of .a) Platinum Account b) Gold Accountc) Diamond Account d) Both (a) & c

82. Which Branch has been designated as Nodal Branch for Gold Deposit Scheme.a) Overseas Branch, Mumbai b) Mumbai Main Branchc) New Delhi Main Branch d) Nagpur Branch

83. A new charge of per occasion (inclusive of postal charges) has been introduced for transfer of SB & Current Accounts.a) Rs. 102/- b) Rs. 51/- c) Rs. 204/- d) Rs. 306/-

84. What is SBI Flexi deposit basicallya) SB b) CA c) STDR d) RD

85. Penalty on Premature payment of RD account should not exceed -a) Rs.90/- b) Rs.120/-c) Interest payable on RD d) None of the above

86. Overdraft created in a SB A/c should be adjusted within a period ofa) One week b) Two months


c) Three weeks d) One month

87. What is the Personal Accident Insurance (Death) cover for Primary Salary Account holdersin Diamond variants under Corporate Salary Package features offered to Maharatna'semployes.a) Rs.15 lakhs b) Rs.25 lakhs c) Rs.5 lakhs d) NA

88. What is the Penalty per quarter for non-maintenance of QAB in case of SME Power Base account ?a) Rs.1000/- b)Rs. 2000/- c)Rs. 3000/- d)Rs. 4000/-

89. What is the minimum and maximum over draft, which can be sanctioned in Power POS-Current Account?a) Rs 5000/-, Rs 1 lacs b) Rs 25000/-, Rs 5 lacs c) Rs 10000/-, Rs 2 lacs d) Rs 50000/-,Rs 5 lacs

90. The Reserve Bank of India acts as the banker to the Central government in terms of which Sections of the RBI Act-a) 20&21 b) 12&13 c) 24&25 d) 10&11

91. Penalty for closure of account before 12 months in case of SME Power Pack account isRs.a) 1000/- b) 2000/- c) 5000/- d) 3000/-

92. What is the interest payable on DIR bulk deposit above Rs 1 crore , on premature withdrawal before seven days ?a) 0.50% b) 1.00%c) None of above d) no interest payable


93. Quarterly Average Balance required to be maintained in SME Power Base account isa) Rs.3.00lac b) Rs.0.40 lac c)Rs.0.20 lac d) Rs.0.75 lac

94. What is the threshold limit for auto sweep in saving plus account for gold variants customers under Corporate Salary Package features offered to Miniratnas employes.a) Rs.1000/- b) Rs.10000/- c) Rs.25000/- d) Rs.35000/-

95. Maximum period for which banks should accept depositsa) 10 years b) 12 years c) 7 years d) 15 years

96. In case of issuance of Multi City Cheques (MCC) to all P Segment Savings Bank customers,the default limit is raised toa)Rs. 3.00 lac b)Rs.4.00 lac c)Rs. 10.00 lac d)Rs.5.00

97. What is Holiday Savings Accounta) e-RD b) e-TDRc) e- FD d) All

98. Can HUF open Saving Bank account? If yes then in whose namea) No, only current account name of Firm b) Yes, name of the Karta of HUFc) both the account SB & CA name of the firm d) Yes, in the name of any member of HUF

99. Western Union Remittances can also be received through which of the below mentioned mode for INB customers having transaction rightsa) ABMT b) MTSS c) both d) none of these

100. Minimum Amount of deposit under Annuity Deposit Account isa) Rs 35,000/-


b) Rs 25,000/-c) Rs 45,000/- d) Rs 55,000/-

101. Bank can not open Savings Bank Account in the name of which type of entitya) Public Ltd. companyb) Pvt. Ltd. Companyc) Political Party d) all

102. Western Union Remittances scheme can be used 24 x 7 or nota) yes b) no c) can't say d) none of these

103. Which deposit scheme has been revived recently after discontinuance since Jan 1982?a) Kanakdhara b) Cash Certificate c) Annuity Depositd) Tiny Deposit

104. Opening of SB accounts will not be applicable in certain cases including, inter alia,(i) Cases of Societies registered under the Societies Registration Act, 1860 or any nother corresponding law in force in a State or a Union Territory except societies registered under the State Co-operative Societies Acts and specific state enactment creating Land Mortgage Banks(ii) Institutions whose entire income is exempt from payment of Income-tax under the Income-Tax Act, 1961.a) only statement i b) only statement iic) both d) not allowed to open SB A/c

105. Minimum time period for opening a Special term deposit accounta) 7 day b) 30 days c) 6 months d) 3 months

106. Challan Form No. for Tax Deducted at Source (TDS) Form isa) 281 b) 280 c) 285 d) none of these


107. In Sahaj Account, Is cash withdrawal is permitted at the cash countera) Yes b) No c) Both d) Can't Say

108. Bank is paid a commission of _____per challan received by the Bank (irrespective of the amount).a) Rs. 12/- b) Rs. 50/- c) Rs. 56/- d) none of these

109. Minors who can adhere to uniform signature and are not less than ten years old can open accounts in their single name and maintain therein a maximum balance ofa) 10,000/- b) 50,000/- c) 1,00,000/- d) 2,00,000/-

110. What is the Specified time period for Construction of One Residential House situated inIndia from the date of transfera) 1 yr b) 3 yrs c) 5yrs d) none of these

111. Average quarterly balance in Sahaj Accounta) Rs. 1000/- b) Rs. 2000/- c) Rs. 5000/- d) no restriction

112. Head of government business at corporate center is-a) MD (NBG) b) CGM (GBU)c) DMD (CS&NB)d) GM (GBU)

113. What is the minimum deposit for opening a Tax saving deposit account.a) Rs. 1000/- b) Rs. 1500/- c) Rs. 2000/- d) no minimum

114. Name the project of Indian Railway for auction of railway scraps and payment of EMD amount and sale proceeds.


a) E-Tendering b) E-Auction c) Rail Shakti d) none of these

115. What is the Minimum & Maximum period of Deposit in Kisan Mitra Jama Yojana (KMJY) (in months)-a) 6-36 b) 12-36 c) 12-60 d) 12-120


SME ADVANCES PRODUCTS Compiled by- Sh. Rajesh Dahiya Mgr -Training

1. One of the eligible criteria under SME Smart Score Scheme is the Chief Promoter / Chief Executive should be below years of age.a) 47b) 55 c) 71d) 66

2. Under SME Smart Score Model, the scoring is done under which of the following parameters?a) Personal, Business & Collateralb) Business, Collateral & Physicalc) Personal, Economic & Collaterald) Personal, Demographic & Collateral

3. Under SME Smart Score quantum of WC & TL loan is restricted to what percent of annual turnover and what percent of project costs respectively for trade and services units.a) 20 & 50b) 15 & 67c) 30 & 60d) 40 & 70

4. Under SME Smart Score Scheme Minimum credit score in aggregate to be obtained for being eligible for finance is % or more.a) 47b) 54c) 60d) 75

5. Maximum quantum of finance obtained for trade & services under SME Smart Score scheme is a) 75 lacsb) 100 lacsc) 25 lacsd) 50 lacs

6. 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 Scorea) 50b) 62c) 74d) 81

7. In case of Working Capital needs, a SSI Unit can be granted what percent of annual turnover subject to a maximum of not exceeding Rs.____lacs under SME Smart Score.a) 10, 20


b) 15, 40c) 25, 50d) 20, 30

8. In case of Term Loan, a SSI unit can be granted what percent of project cost subject to a maximum of not exceeding Rs.___ lacs under SME Smart Scorea) 45, 25b) 67, 40c) 67, 50d) 74, 45

9. Moratorium on Term Loan under SME Smart Score can be provided for a period not exceeding how many monthsa) 1b) 6c) 3d) 9

10. Term Loan under SME Smart Score will be repaid in maximum of how many years excluding moratorium period.a) 5b) 12c) 8d) 11

11. Working Capital Limit under SME Smart Score Scheme is sanctioned for a period of years subject to annual review.a) 3b) 4c) 2d) 5

12. Which of the following is not true in regards to Smart score scheme ?a)Quantum of Finance available under SSI units is Rs.5lacs to below Rs.50lacsb)Quantum of Finance available under Trade & Services is Rs.5lacs to Rs.25lacsc)Margin requirement is 25% for working capital component and 33% for TL componentd)Quantum of Finance available under SBF(Trade) units is Rs.25lacs to below Rs.50lacs

13. Minimum & Maximum quantum of loan under SBI Asset Backed Loan is ___ lacs &________ lacs respectively.a) 15 & 750b) 15 & 5000c) 25 & 1500d) 10 & 2000

14. Under Loan the amount of finance is limited to what percentage of value of property.


a) 65%b) 40%c) 50%d) 85%

15. Under SBI Asset Backed Loan, drop line overdraft limit sanctioned for a maximum period of _____ months.a) 90b)108c)180d) 120

16. At non BPR branches branches will handle loan proposals up toa) 50 lacsb) 80 lacsc) 40 lacsd) 65 lacs

17. The nature of facility under Asset Backed Loan is always _______based.a) Fundb) Fund & Non-Fund c) Non-Fundd) Asset

18. Under Asset Backed Loan , stock statement will be obtained at ______intervals other than Demand Loan or Term Loan.a) Monthlyb) Quarterlyc) Half-yearlyd) Yearly

19. Maximum finance to operators working for Ola cabs is Rs._______ lacs.a) 40b) 30c) 50d) 75

20. Inspection of property, unit and activity should be carried out at what intervals under Asset Backed Loan scheme.a) Yearlyb) Quarterlyc) Half yearlyd) Monthly

21. Under SBI Construction Equipment Loan minimum loan requirement amount is Rs. ________ lacs.a) 25


b) 40c) 75d) 200

22. Under Asset Backed Loan, property mortgaged needs to be within a radius of how amny kms from the branch.a) 30b) 25c) 17d) 21

23. To be eligible for finance under SME Credit Plus the borrowers' account should be classified as standard asset as on 31st March of past consecutive how many yearsa) 1yrb) 2yrsc) 3yrsd) 4yrs

24. Under SME Credit Plus the limit can be utilized how many times a year.a) 5b) 7c) 9d) 12

25. Under SME Credit Plus there should be a gap of how many days between complete repayment and fresh disbursal.a) 7b) 15c) 28d) 21

26. Maximum amount of loan that can be sanctioned under SME Credit Plus isa) 50 lacsb) 75 lacsc) 35 lacsd) 25 lacs

27. What will be the security in case of credit facilities under SME Credit Plus ?a) Hypothecation of stocksb) Hyp. of Book Debtsc) Both a and bd) Extention of both primary & Collateral

28. Each withdrawal for the additional limits provided under SME Credit Plus, should be repaid within how many months.a) 6b) 2


c) 5d) 3

29. Maximum amount of loan that can be sanctioned under SME Credit Plus is what percent of aggregate working capital limit.a) 15b) 35c) 20d) 30

30. Type of facilities sanctioned under SME credit plus scheme isa)Clean Cash Creditc)Composite loanb)Term loand)None of these

31. In case of loans for working capital under SME Credit Card, the stock statement has to be obtaineda)Monthlyb)Quarterlyc)Half-yearlyd)Yearly

32. The maximum amount of loan that can be sanctioned under SME Credit Card is a) 10 lacsb) 20 lacsc) 25 lacsd) 50 lacs

33. SME Credit Card can be given to SSI Units with satisfactory track record of how many years.a) 5b) 6c) 4d) 2

34. Term Loan portion under SME Credit Card Scheme will be repaid in a maximum of how many years in suitable installments.a) 6b) 5c) 8d) 10

35. In case a SSI unit intends to avail credit facility under SME Credit Card Scheme, what type of collateral security will be taken by the bank?a) Equitable Mortgageb) Nil security


c) Third Party Guaranteed) Registered Mortgage

36. The validity of SME Credit Card isa) Two years subject to annual review and satisfactory conduct of the accountb) Three years subject to annual review and satisfactory conduct of the accountc) Five years subject to annual review and satisfactory conduct of the accountd) Seven years subject to annual review and satisfactory conduct of the account

37. How much score must be scored by a unit in order to be eligible for finance under SME Credit Card Scheme?a) 23b) 31c) 36d) 49

38. Limit under SME Credit Card Scheme of a small business unit/retail trader will be at what percent of their annual turnover or what percent of turnover of the last 12 months in their accounts, whichever is highera) 10, 20b) 25, 30c) 20, 20d) 25, 40

39. Limit under SME Credit Card Scheme to a SSI unit will be assessed as pera) Operating Cycle Method b) Nayak Committee c) Traditional Methodd) PBS Method

40. Maximum loan financed to self- employed and professionals under SME credit card scheme is what percent of gross annual income as declared in their income tax return.a) 50%b) 75%c) 100%d) 125%

41. How much percent margin will be obtained for loan sanctioned over Rs. 25000/- and up to Rs.10 lacs under SME Credit Card Scheme?a) 10b) 20c) 25d) 40

42. To renew the CC limit under SME Credit card how much minimum % of credit summations are required in the account.a) 50% of projected turnover


b) 60% of projected turnoverc) 75% of annual turnoverd) 100% of projected turnover

43. Under Artisan Credit Card Scheme Minimum score to be obtained for being eligible for finance isa) 45b) 55c) 60d) 100

44. Maximum quantum of finance obtained under Artisan Credit Card scheme is.a) 5.00 lacsb) 10.00 lacsc) 1.00 lacsd) 2.00 lacs

45. Collateral security obtained under Artisan Credit Card is a) 25%b) 40%c) 75%d) Nil

46. What margin will be obtained for loan sanctioned over Rs. 25000/- and up to Rs. 2 lacs under Artisan Credit Card Scheme.a) 50b) 20c) 30d) 35

47. The portion of limit used for purchase of tools etc may be made repayable in maximum how many years under Artisan Credit Card Scheme.a) 3b) 7c) 9d) 11

48. Which of the following is not true in regards to Artisan Credit Card?a) Preference to be given to artisans registered with the Development Commissioner (Handicrafts)b) Standalone Artisan with proven track record will be given priority for selecting the line of activityc) Existing borrowers with limits upto Rs.2 lacs and satisfactory track record are also eligible.d) Thrust to be to finance in clusters and preferably those supported by a SHG

49. The limit under artisan credit card is reviewed every year but valid for how many years subject to satisfactory conduct of the account.


a) 4b) 7c) 3d) 5

50. Minimum loan amount under SBI Corporate Home Loan isa) 0.50 crb) 5 crc) 1 crd)3 cr

51. Maximum loan amount under SBI Corporate Home Loan isa) no maximum limitb) 100 crc) 500 crd) 20 cr

52. Maximum loan tenor for repayment of SBI Corporate Home Loan is how many years including moratorium period.a) 35b) 15c) 25d) 30

53. SBI OD product for Business Correspondents upper cap is a) 10 crb) 25 crc) 15 crd) 5 cr

54. Minimum assistance to Business Correspondents under SBI OD product is a) 10 lacsb) 25 lacsc) 50 lacsd) 100 lacs

55. Under Doctor plus Scheme, no tangible collateral security for loan amounts up toa) 100 lacsb) 150 lacsc) 200 lacsd) 250 lacs

56. In Doctor Plus scheme, minimum score of _______in credit scoring model is required for sanctioning the loan upto Rs.25 lacs.a) 36b) 40c) 44


d) 62

57. In Doctor Plus scheme proposal will not be considered for sanction, if the CRA rating is belowa) SB-3b) SB-5c) SB-9d) SB-11

58. Minimum DSCR under Doctor Plus isa) 1.50:1b) 1.75:1c) 2.50:1d) 3.00:1

59. Under 'Doctor Plus' maximum ceiling of limits for Corporates in metro and urban areas is a) Rs 10 lacsb) Rs 100 lacsc) Rs 500 lacsd) Rs 1000 lacs

60. Under 'Doctor Plus' maximum ceiling of limits for individual in other areas isa) Rs 10 lacsb) Rs 100 lacsc) Rs 500 lacsd) Rs 1000 lacs

61. The maximum repayment period under Doctor Plus Scheme for buying equipment & expansion/renovation is for how many years.a)7b)3c)8d)10

62. Moratorium under Doctor Plus Scheme can be granted for a period of maximum how many months.a) 6b) 9c) 12d) 18

63. The maximum amount of loan under Arthias Plus Scheme isa) Rs. 5 lacsb) Rs. 10 lacsc) Rs. 200 lacsd) Rs. 50 lacs


64. CGTMSE came into existence with effect froma) 31.08.2002b) 01.08.2000c) 12.08.2000d) 31.08.2000

65. CGTMSE does not include any exposure extended toa) Retail Tradeb) SRTOc) Small Businessd) Small Business Non-Trade

66. CGTMSE cover is applicable to new as well as existing Micro & ______Enterprises.a) Mediumb) Largec) Smalld) All of the above

67. The Nodal Officer of our bank is posted at each of our RBO anda) AOb)SMECc) LHOd) None of these

68. In Asset Backed Loan for Commercial Real Estate the maximum eligible loan which can be sanctioned in Tier-I branches isa) Rs. 100 Crb) Rs. 65 Crc) Rs. 75 Crd) Rs. 50 Cr

69. Under Asset Backed Loan for Commercial Real Estate , in case of an advance of Rs. 5 Crores, the amount of finance is limited to what percent of value of property.a) 50%b) 65%c) 45%d) 35%

70. Under Asset Backed Loan for Commercial Real Estate, what margin is obtained on project cost for fixed asset requirementa) 35b) 45c) 15d) 25

71. In Asset Backed Loan for Commercial Real Estate the maximum eligible loan which can be sanctioned in Tier-II,III branches is maximum how many crores.


a) 25b) 50c) 20d) 15

72. In Asset Backed Loan for Commercial Real Estate the maximum eligible loan which can be sanctioned in Tier-IV,V,VI branches is maximum how many crores.a) 1.00b) 2.50c) 5.00d) 7.50

73. Under Asset Backed Loan, in case of early closure, pre-payment penalty is going to be charged at .a) 1.50%b) 1.00%c) 2.00%d) 0.50%

74. The maximum claim on default that the CGTMSE will pay to bank isa) 500 lacsb) 150 lacsc) 100 lacsd) Any amount

75. What is the name of the Product designed under SMEBU to finance for input credit claim for GST to unitsa) SME SAHYOGb) SME ASSISTc) SME HELPd) SME VIVEK

76. What is the name of the product under which loan is given for tie up with e-commerce loan?a) smart e-SMEb) SME e-SMARTc) SME e-smartd) e-Smart SME

77. Name the project which is re designed for SME credit Rating and Appraisal.a) Project VIJAYb) Project LOTUSc) Project CRMd) Project VIVEK

78. What is the full form of UANa) Unique Aadhar Number


b) Urban Aadhar Numberc) Unified Aadhar Numberd) Universal Aadhar Number

79. Under which are the product/products under SMEBU which have been discontinued with?a) SBI SHOPPEb) Rent Plusc) SME DAL MILL PLUSd) a & b

80. Under new assessment of WC limit for MSME units under Turnover method, what will be the margin requirement from the beneficiarya) 10.00%b) 6.25%c) 5.00%d) 20.00%

81. Name of the Campaign for acquisition, retention and takeover of SME Advances ?a) SME e-SMARTb) SME ASSISTc) SME SELFHELPd) SMeART

82. What is the maximum loan under SME ASSIST ?a) 20 % of the the existing limitb) 80 % of the input claim due on purchasesc) Lower of the limit from a & bd) None

83. What is the maximum repayment period under SME ASSISTa) 12 monthsb) 6 monthsc) 3monthsd)18 months

84. What is the repayment period under SME CRE Asset Backed Loana)72 monthsb)120 monthsc)156 monthsd)180months

85. Registration with ROC must be completed with in how many days after creation of mortgage.a) 45 daysb) 90daysc) 30 days


d) 75days

86. Under project VIVEK loans can be appraised up toa) 5 croresb) 25 croresc) 10 croresd) 50 crores

87. Loans above what limit must have to be appraised and sanctioned under Project VIVEK.a) 50 lacsb) 25 lacsc) 100 lacsd) 500 lacs

88. Loans above what limit must be processed through LLMS.a) 25 lacsb) 5 croresc) 50 lacsd) 1 crore

89. The minimum amount of loan under loan to Business Correspondent scheme is Rs.______.a) 1.50 lacsb) 0.50 lacsc) 1.00 lacsd) 0.25 lacs

90. The maximum amount of loan under loan to Business Correspondent scheme is Rs. ______.a) 1.50 lacsb) 0.50 lacsc) 1.00 lacsd) 2.50 lacs

91. The applicable margin under loan to Business Correspondent scheme isa) 25b) Nilc) 20d) 15

92. The collateral security to be obtained under loan to Business Correspondent scheme isa) 25%b) NILc) 30%d) 15%

93. The maximum repayment period in term loan facility under loan to Business


Correspondent scheme is _________months.a) 84b) 60c) 96d) 48

94. The maximum amount of loan for two wheeler under loan to Correspondent scheme is a) 0.25 lacsb) 0.75 lacsc) 1.00 lacsd) 0.50 lacs

95. Maximum amount of loan under Open Term Loan(Service sector) isa) 250 lacsb) 200 lacsc) 150 lacsd) 500 lacs

96. Margin requirement under Open Term Loan is uniformly.a) 35%b) 25%c) 15%d) 10%

97. The period of repayment under Open Term Loan generally not to exceed ______ years.a) 9b) 8c) 7d) 5

98. Under Open Term Loan facility the sanction is valid for _________ months from the date of Sanction.a) 12b) 18c) 6d) 3

99. To be eligible for finance under General Purpose Term Loan for SSI sector , the unit should have an Pre-tax profit in each of the immediately preceding ____________ years.a)1b)2c)3d)4

100. To be eligible for finance under General Purpose Term Loan for SSI sector, the unit should have a CRA rating of _________ and above.a)SB 1


b)SB 3c)SB 4d)SB 5

101. Minimum margin for loans sanctioned under General Purpose Term Loan for SSI sector is _____________ %.a)15b)10c)25d)35

102. The repayment period for General Purpose Term Loan for SSI is________.a) 5 to 7yrsb) 3 to 5yrsc) 1 to 3yrsd) 3 to 7yrs

103. Maximum amount of loan that can be sanctioned under Flexi loan for T&S sector is Rs. ______________a)50 lacsb)40 lacsc)30 lacsd)100 lacs

104. Minimum amount of loan that can be sanctioned under Flexi loan for T&S sector is Rs. ___________a) 5 lacsb) 25 lacsc) 50 lacsd) 75 lacs

105. To be eligible for finance under Flexi loan for T&S sector, the unit should have a TOL/TNW not beyond _________a) 1b) 2c) 3d) 4

106. Which of the following is true in regards to Dal Mill Plus scheme ?a)Profit making existing units with CRA rating of SB9b) TL to be repaid in 5 to 7 years excluding a maximum moratorium period of 12 monthsc) Loan amount above Rs.50lacs - EM of property / tangible security to be obtained for not less than 75% of the loan amount.d) All of the above

107. Stand By Line of Credit for SSI can be given for a maximum period of ___ at any one instance.


a) 75 daysb) 90 daysc) 45 daysd) 60 days

108. Car Loan To SME Units can be sanctioned to an individual promoter when he has a net annual income of ________& above as per last IT return.a) Rs. 5 lacsb) Rs.3 lacs c) Rs. 4 lac d) Rs. 2 lacs

109. Family for the purpose of Car Loan to SME Units meansa) Parentsb) Spouse & Childrenc) Spoused) Parents, Spouse & Children

110. The maximum loan amount under Car Loan to SME Units would bea) 2 times NAIb) 4 times NAIc) 3 times NAId) 2.5 times NAI

111. The EMI/NMI % should not exceed _____ under Car Loan to SME Units.a) 75%b) 60%c) 50%d) 55%

112. After initial inspection, if SME Car Loan account becomes irregular by a default of ___ EMI, immediate post sanction inspection is required.a) 2b) 3c) 1d) 6

113. No valuation certificate is required for used vehicles under Car Loan to SME Units if car is sold undera) Maruti True Value scheme b) Automartindia c) Both of the aboved) None of the above

114. SME Open Term Loan product will be extended upto CRA rating of SB __ .a) 5b) 6


c) 7d) 10

115. For purchase of a new car under Car Loan to SME Units, loan sanctioned will be repaid in ______ years.a) 5 b) 7 c) 8 d) 10

116. Unit with CRA of SB ____ and below is not eligible for finance under ABL (CRE).a) 10b) 9c) 8d) 7

117. Under PMEGP the maximum cost of the project/unit admissible under manufacturing sector is Rs. ______.a) Rs. 25 lacsb) Rs.10 lacsc) Rs.20 lacsd) Rs.25 lacs

118. The maximum cost of the project/unit admissible under business/service sector is Rs._______ lakh.a) 10b) 18c) 24d) 36

119. The Bank will sanction ____ of the project cost in case of General Category of beneficiary/institution under PMEGP scheme.a) 90%b) 25%c) 20%d) 30%

120. The bank will sanction ____% in case of special category of the beneficiary/institution under PMEGP scheme.a) 95b) Cash Budgetc) PBSd) MPBF

121. WC limits of MSME units (availing Fund Based Working Capital requirement upto Rs. 5 crores) will be assessed at _______% of the projected annual turnover.a) 20.25


b) 25.75c) 15.25d) 31.25

122. Under Fleet Operator scheme, the promoter should have an experience of ____ years or more in the same line.a) 2b) 5c) 3d) 4

123. Fleet operator who is eligible to get advances under Fleet Operator Scheme should have an existing fleet of minimum ____ vehicles.a) 10b) 5c) 20d) 15

124. Under Fleet Operator scheme, the minimum average gross DSCR should be ___& above.a) 1.75b) 2.00c) 1.40d) 1.50

125. Borrower has to get min ____% score under scoring model to be eligible for SBI Fleet Finance Scheme.a) 25b) 35c) 45d) 55

126. The product for financing Ex-servicemen, Widows of servicemen, Disabled servicemen is _________.a) SEMFEX IIb) SEMFEX IIIc) SEMFIXd) SEFMEX

127. If the existing fleet operator possesses an experience of more than 8 years in the transport industry, he is going to score _____ marks in the credit scoring matrix.a) 5b) 4c) 6d) 3

128. For financing under Construction Equipment Loan, the CRA rating under new model


should be between ______ to _________.a) SB-1 to SB-4 b) SB-1 to SB-7 c) SB-1 to SB-8 d) SB-1 to SB-12

129. The maximum amount of loan under construction equipment loan scheme is Rs. _______a) Rs.25 lacs b) Rs. 1 crore c) Rs.25 croresd) Rs.10 crores

130. The minimum amount of loan under construction equipment loan scheme is Rs. _______a) Rs.25000b) Rs. 10 lacsc) Rs.25 lacsd) Rs.1 crore

131. The maximum amount of loan in 6 metros under Construction Equipment Loan Scheme is Rs. _________a) Rs.1 crore b) Rs. 25 crores c) Rs.50 crores d) Rs.100 crores

132. Mortgage of property to the extent of at least _________ of the loan amount are obtained as collateral security under construction equipment loan scheme.a) 25%b) 50%c) 75%d) 100%

133. The margin requirement under SEMFEX-II scheme is ________%.a) 25b) 15c) 20 d) 30

134. The maximum amount of loan that can be sanctioned under 'Weaver Credit Card' is Rs. _________ lacs.a) 2b) 3c) 5d) 10


135. Term Loan portion under Weaver Credit Card Scheme will be repaid in a maximum of _________ years in suitable installments.a)3b)5c)7d)9

136. As per the scoring model for Weaver Credit Card Scheme, a unit has to score minimum of _________% score to qualify under the scheme.a) 50b) 60c) 70d) 80

137. ___________% margin will be obtained for loan sanctioned over Rs. 25000/- and up to Rs.2 lacs under Weaver Credit Card Scheme?a) 10b) 20c) 25d) 30

138. Which of the following statements about 'Weaver Credit Card' is "incorrect"?a) The credit card would be valid for 3 years subject to annual review by the Bankb) No need of financial statement for purpose of annual review of limitc) No fees will be charged at the time of review/ renewal of Cardd) The credit card would be valid for 3 years

139. The maximum amount of loan under Corporate loan for non-corporate borrowers of C&I (Mfg) & SSI segment scheme is Rs. __________a) Rs. 25 lacsb) Rs. 1 crorec) Rs. 5 croresd) Rs.10 crores

140. For new connection under SBI Builder Finance for Residential Project under Sole Banking minimum rating should be ________.a)SB 5b)SB 7c)SB 10d)SB 9

141. Maximum exposure to corporates under SBI Builder Finance for Residential Project under Sole Banking is ________.a)25 crb)100 crc)200 crd)400 cr


142. Maximum repayment period under SBI Builder Finance for Residential Project under Sole Banking is ________ months.a)60b)36c)72d)84

143. Under Dall Mill Plus scheme loans upto Rs _________ lacs to be mandatorily covered under CGTMSE.a)10b)20c)50d)100

144. Expand MUDRAa)Micro Units Development and Refinance Agencyb)Medium Units Development and Refinance Agencyc)Macro Units Development and Refinance Agencyd)Micro Units Development and Recreation Agency

145. As per MUDRA, loans upto Rs.50,000 will be classified under_________ category.a) Sishub) Kishorec) Tarun d) None of the above

146. As per MUDRA, loans from Rs. 50,001 to Rs.5,00,000 will be classified under________ category.a) Sishub) Kishore7c) Tarun d) None of the above

147. Max Loan amount in Rent Plus Scheme in metros isa) Rs. 10.00 Cr b) Rs. 7.50 Crc) Rs. 5.00 Crd) Rs. 1.00 Cr

148. Doctor plus Scheme DSCR requirement isa) 1.50:1 b) 1.75:1 c) 2.00:1 d) 2.50:1

149. The investment criteria in equipment for classifying an enterprise as Micro


(Service) enterprise is______a) Up to Rs.10.00 1acsb) Above Rs.25 lacs and up to Rs.5.00 Crc) Above Rs. 101as and up to Rs.2.00 Crd) Above Rs. 2.00 Cr and up to Rs.5.00 Cr

150. Investment of Rs .25 Lacs to Rs.5 crore in Plant & Machinery comes undera) Micro (mfg) Enterprisesb) Small (Manufacturing) Enterprisesc) Small (Service) Enterprisesd) Medium (mfg) Enterprises

151. Quantum of loan under SME Credit plusa) 10% of Fund based w.c limit subject to a max of Rs.25 lacsb) 20% of Fund based w.c Iimit subject to a max of Rs.25 lacsc) 25% of Fund based w.c limit subject to max of Rs.25 lacsd) 25% of Fund based w.c limit subject to max of Rs.50 lacs

152. Security erosion is to be classified as unsecured exposure ifa) The realisable value of security is not more than 5% of the outstandings.b) The realisable value of security is not more than 10% of theoutstandings.c) The realisable value of security is not more than 15% of the outstandings.d) The realizable value of security is not more than 20% of the outstandngs.

153. The extent of Guarantee cover (up to Rs. 5 Lacs) under CGTMSE is:a) 85% of the amount is default subject to a max of Rs.4.25 lacsb) 75% of the amount is default subject to a max of Rs.37.50 Iacsc) 50% of the amount is default subject to a max of Rs.50.00 lacsd) 80% of the amount is default subject to a max of Rs.40.00 lacs

154. The classification of an enterprise as Micro, Small and Medium(manufacturing) enterprise is based on the criteria ofa) Number of persons employedb) Capital invested in the enterprisec) Location of the enterprise such as rural / urban / metrod) Investment in plant and machinery at its original cost and engaged inmanufacturing, processing or preservation of goods.

155. FFR is applicable toa) Limits up to Rs.5.00 Crb) Limits of Rs.5.00 Cr and abovec) Limits above Rs.5.00 Crd) Limits of Rs.10.00 Cr and above

156. The total exposure of the Bank for a group borrower isa) 15% of capital funds of the Bank


b) 20% of capital funds of the Bankc) 40% of capital funds of the Bankd) 50% of capital funds of the Bank

157. Unconditional CanceIlability Clause (UCC) meansa) Limit cannot be cancelled till expiryb) Limit liable to be cancelledc) Limit can be cancelled at the option of the borrowerd) Limit is no longer required

158. Which of the following is an Accounting Equation?a) Assets = Capitalb) Assets = Capital minus Liabilitiesc) Assets = Capital plus Liabilitiesd) Assets = Liabilities minus Capital

159. Return on Asset is calculated asa) Profit after taxb) Profit before taxc) Profit before tax and depreciationd) Gross profit

160. What is the maximum loan eligible under SBI Asset Backed Loan?a) Rs10 cr b) Rs.15 cr c) Rs.20 crd) Rs.50 cr

161. The stock statements should be enabled in which menu of CBSa) CC / OD fileb) Contingent Account Modulec) Customer Management Moduled) Miscellaneous Module

162. Expand CIBIL.a) Credit Investment Bank of India Limitedb) Catholic Investment Bank of India Limitedc) Credit Information Bureau of India Limitedd) Credit Industrial Bank of India Limited

163. Collateral free loan for SMEs has been increased toa) 1 croreb) 15 lakhsc) 20 lakhsd) 50 lakhs

164. SME 2 is a document for


a) Agreement letterb) Arrangement letterc) Agreement of loan cum hypothecationd) Supplemental Agreement of loan cum hypothecation

165. Limitation period for the mortgage startsa) From the date of executionb) From the date of registrationc) From the date the repayment is dued) None of these

166. Packing credit is provided fora) Pre-shipment facilitiesb) For setting up a joint venture abroadc) Inland Bill financed) Factoring Services

167. Paripassu charge meansa) 1stchargeb) 2nd chargec) Equal charge proportionate to the outstandingd) Last charge

168. The term hypothecation is specifically defined undera) Indian Contract Actb) Companies Actc) NI Actd) SARFAESI Act

169. Minimum amount of loan outstanding for which notice can be issued underSARFAESI Act for recovery of Bad debts isa) Up to Rs.1.00 lacb) Rs.1.00 lac and abovec) Above Rs.1.00 lacd) Rs.5.00 lac and above

170. CERSAI registration should be done within how many days?a) 10 daysb) 30 daysc) 45 daysd) 60 days

171. Difference between value of export and import of the county is called as:a) Trade Deficitb) Current Account Deficitc) Currency Deficitd) Capital Account Deficit


172. Certificate of Commencement of business is required in case ofa) Pvt. Ltd Cob) Public Ltd Coc) A+Bd) Partnership firme) None of these

173. AS-2 in Accounting Standards is for:a) Valuation of Inventoriesb) Charging depreciation on Fixed Assetsc) Making Provision for NPAsd) Classification of assets

174. When a term loan for more than 3 years is sanctioned by the bank the major riskis______a) Credit Riskb) Operational Riskc) Liquidity Riskd) Market Risk

175. If protected debt/equity ratio is 2:1 equity contribution is______a) 67%b) 33%c) 50%d) None of these

176. Contribution isa) Sales-variable costb) Sales-Fixed costc) Sales-Net profitd) None of these

177. Credit Conversion Factor (CCF) for Financial Guarantee is______a) 50%b) 75%c) 100 %d) 125%

178. Simple Mortgage is also known asa) Equitable Mortgageb) Regd Mortgagec) Usufructuary Mortgaged) English Mortgage

179. Goods and Services Tax is applicable fora) Manufacturittg Enterprises


b) Service Enterprisesc) Both a & bd) Exports Units

180. Crystallisation means_______a) Conversion of INR to Forexb) Crystallisation of Letter of Creditc) Conversion of Forex liability to INR liabilityd) realisation of LC

181. Working capital Gap meansa) Current Liabilities- Current Assetsb) Current Asset- Term Liabilitiesc) Current Asset- Current Liabilities other than Bank borrowingsd) Term Liabilities - Current Assets

182. The Benchmark ratios for Gross DSCR and Net DSCR fixed by the Bank are_______a) 1.75:2.00b) 2.00:1.75c) 1.33:1.75d) 1.75:1.50

183. Method of working out working capital requirement of seasonal industriesa) Nayak Committee Methodb) Projected BaIance sheet Methodc) Cash Budget Methodd) None of these

184. Risk weight for ECGC clam receivable :a) 20%b) 30%c) 40 %d) 50%

185. Margin money kept for LC and Bard Guarantee is considered as:a) FAb) CAc) Cashd) Intangibles

186. At the Bank level, Non fund based limit cart be maximum ________%of FBLa) 100b) 200c) 300d) None of these


187. If there is no production, the following costs are incurreda) Fixedb) Variablec) Fixed and Variabled) None of these

188. As per MSMED Act 2006, Maximum Investment in P & M for Micro Enterprises is.a) Rs.25.00 lacsb) Rs.15.00 lacsc) Rs.10,00 lacsd) None of these

189. As per notification issued by the Ministry of MSME, the term Micro Enterprises has to be used in place of which of the following in the statutes / rules/ notifications/ guidelines/ instructions etc. and in all other documents concerneda) Tiny Enterprisesb) Industriesc) Tiny Unitsd) All of these

190. Recently IBA approved a common loan application form for upto the amount of Rs._______for all MSME Units.a) 2.00 Crb) 1.00 Crc) 50.00 lacsd) 25.00 lacs

191. An Industrial enterprise is known as Micro enterprise if the original investment in plant and machinery isa) upto Rs 25 Lakhsb) more than Rs 25 L & Upto Rs 5 Croresc) more than Rs 5 Crs & Upto Rs 10 Croresd) upto Rs 10 Lakhs

192. An Industrial enterprise is known as Medium enterprise if the original investment in plant and machinery isa) upto Rs 25 Lakhsb) more than Rs 25 L & Upto Rs 5 Croresc) more than Rs 5 Crs & Upto Rs 10 Croresd) upto Rs 10 Lakhs

193. A Service enterprise is known as Small Enterprise if the original investment in equipments isa) upto Rs 25 Lakhsb) more than Rs 10 L & Upto Rs 2Croresc) more than Rs 2Crs & Upto Rs 5 Croresd) upto Rs 10 Lakhs


194. With regard to documentation, SME 3 refers to …a) Agreement of Loan-cum-Hypothecationb) Guarantee Agreementc) Supplemental Documentd) Arrangement Letter

195. The form to be obtained for Agreement of Loan-cum-Hypothecation for SME isa) SME 2b) SME 4c) SME 5d) SME 3

196. What is the form to be obtained with regard to confirmation of EM under SME documentation?a) SME 4b) SME 6c) SME 7d) SME 8

197. For extension of EM under SME documentation, what is the form to be used?a) SME 4b) SME 6c) SME 7d) SME 8

198. SME 9 refer to -------------- in SME Documentation.a) Deed of further mortgageb) Revival letterc) Deed of mortgaged)memorandum of extn of mortgage

199. Revival letter is obtained under SME documentation by using the forma) SME 11b) SME 9c) SME 10d) SME 8

200. The Letter of Arrangement for SME units is given in the form of a) SME 1b) SME 4c) SME 5d) SME 3

201. While obtaining the SME documentation, the form used for obtaining the particulars of assets isa) SME 2 A


b) SME 2c) SME 5d) SME 3

202. What is the form used for obtaining Deed of further mortgage in SME Documentation?a) SME 11b) SME 9c) SME 10d) SME 8

203. Link letter under SME documentation is obtained by using the forma) SME 4b) SME 12c) SME 7d) SME 8

204. In place of SME 13, what is the form used by Branches at present?a) Link letterb) Arrangement letterc) valuation reportd) Title Investigation Report

205. The minimum CRA rating required for eligible to avail SLC is ….a) SB 7 b) SB 3 c) SB 4 d) SB 10

206. SLC can be given to the eligible borrowers under the facility ofa) FB only b)NFB onlyc) Either a or b or both d) Either a or b only

207. The maximum loan that can be sanctioned to a unit under SLC is Rs____ Cra)10 b)5 c)20d)50

208. For sanctioning under SLC facility, the maximum quantum that can be sanctioned to a unit with respect to its working capital limit isa) 20% of FBWC facilityb) 20% of total WC facilityc) 15% of total WC facilityd) 15% of FBWC facility


209. The minimum margin required for SLC isa) 25% uniform for SLCb) 20% uniform for SLCc) as per the terms of the original limits of WC facilityd) 30% uniform for SLC

210. The rate of interest to be charged for SLC isa) the applicable CC rateb) one step above the applicable CRAc) one per cent higher than that applicable for CC facilityd) a separate CRA for SLC

211. The maximum tenor of SLC loan as per sanction of SLC isa) 2 months b) 3 months c) 6 months d) 9 months

212. If SLC is sanctioned to a unit, then how many times can that unit avail SLC during its validity?a) 6 times b)12 times c) No such restriction d) 9 times

213. SBI Asset Backed Loan for Commercial Real Estate the type of loan isa. Cash Creditb. Working Capital Demand Loanc. Dropline Overdraftd. All of these

214. Minimum loan amount that may be sanctioned to eligible borrower under “SBI Asset Backed Loan for Commercial Real Estate” is ….................a. Rs 10.00 Lacsb. Rs 25.00 Lacsc. Rs 50.00 Lacsd. Rs 100.00 Lacs

215. Maximum loan amount that may be sanctioned to eligible borrower under “SBI Asset Backed Loan for Commercial Real Estate” at Tier I Branch isa. Rs. 5 Croresb. Rs.10 Croresc. Rs.20 Croresd. Rs.50 Crores

216. Maximum loan amount that may be sanctioned to eligible borrower under “SBI Asset Backed Loan for Commercial Real Estate” at Tier II, III Branch is


a. Rs.5 Croresb. Rs.10 Croresc. Rs.20 Croresd. Rs.50 Crores

217. Maximum loan amount that may be sanctioned to eligible borrower under SBI Asset Backed Loan for Commercial Real Estate at Tier IV,V,VI Branch isa. Rs. 5 Croresb. Rs.10 Croresc. Rs.20 Croresd. Rs.50 Crores

218. LTV % of Immovable property under SBI Asset Backed Loan for Commercial Real Estate is ? of realizable value.a. 50%b. 60%c. 70%d. 75%


HOUSING LOAN Compiled by- Sh. Tarun Kumar CM -Training

1. Individual(s) over _______ years of age with steady source of income can avail home loan.a) 18 yrsb) 20 yrsc) 21 yrs d) None of the above.

2. Home loan may be given to max. period of ______ yrs.a) 20 yrsb) 25 yrsc) 30 yrsd) 35 yrs

3. Home loan must be liquidated before the borrower reaches the age of ______ yrs.a) 60 yrsb) 65 yrsc) 70 yrs d) 75 yrs

4. In Housing Loan, number of Co-Borrower is restricted to maximum _____ including spouse/children/parents/siblingsa) 3 b) 4c) 5d) 2

5. EMI/NMI ratio for income >Rs. 10.00 lac is a) 55% b) 60%c) 65% d) 70%

6. EMI/NMI ratio for income > Rs. 5 lacs &<= Rs. 8 lacs lac is a) 55%b) 60%c) 65%d) 70%

7. LTV ratio for Home loan upto Rs.30.00 lac is _______a) 80%b) 85%c) 90%d) 75%

8. Stamp Duty, Registration Charges and other documentation charges has been permitted to be added to the cost of the house/dwelling unit for the purpose of


calculating LTV Ratio in cases where the total project cost of the dwelling unit does not exceed Rs.________ lacsa) 12.00 b) 10.00c) 15.00d) 20.00

9. The maximum loan amount for repair/renovation should not normally exceed Rs ___ lacsa) 10b) 12c) 15d) 8

10. Reimbursement of investment in housing made during the preceding ______months can be done.a) 12b) 10c) 15 d)18

11. The discretionary powers made available to Chief General Manager (Circle) for approving concession in interest rate for Home Loans is Home Loan (TL) above Rs. 75 lacs is a) 5 bps b) 10 bpsc) 15 bpsd) 20 bps

12. The discretionary powers made available to Chief General Manager (Circle) for approving concession in interest rate for Home Loans is Home Loan (TL) above Rs. 75 lacs is a) 5 bpsb) 10 bpsc) 15 bps d) 20 bps

13. Penal interest on irregular loans upto Rs. 25000.00 isa) NILb) 2% P.a)c) 3%P.a)d) 4% P.a)

14. 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) 3%c) 4%d) 5%


15. CERSAI registration charges for loan amount upto Rs.5.00 lac isa) Rs. 50/- plus applicable Service Taxb) Rs. 75/- plus applicable Service Taxc) Rs. 100/- plus applicable Service Taxd) Rs. 150/- plus applicable Service Tax

16. CERSAI registration charges for loan amount above Rs.5.00 lac isa) Rs. 50/- plus applicable Service Taxb) Rs. 75/- plus applicable Service Taxc) Rs. 100/- plus applicable Service Taxd) Rs. 150/- plus applicable Service Tax

17. Execution of Documents on the basis of Power of Attorney is allowed in the case of a) Defence Servicesb) Para Military Forcesc) NRIsd) All of the above

18. The sanction of a home loan will be valid for ______months from the date of sanction.a) 6b) 8c) 9 d) 12

19. In-Principle approval given to prospective Home Loan borrowers is valid for how manydays from the date of issuea) 15b) 30c)45d)60

20. Maximum Moratorium period available under Housing Loan Scheme is …… Months.a) 12b) 18c) 24d) 36

21. Moratorium period available for upto 7 floor is ______monthsa) 18b) 24c) 36d)12

22. Moratorium period available for upto >7 floors and <=14 floors is ______monthsa) 18.b) 24


c) 36d)12

23. How many PDCs should be collected in case of Housing Loana) At least 48 cheques or cheques covering the full/ remaining repayment period, whichever is lessb) At least 36 cheques or cheques covering the full/ remaining repayment period, whichever is lessc) At least 24 cheques or cheques covering the full/ remaining repayment period, whichever is lessd) At least 12 cheques or cheques covering the full/ remaining repayment period, whichever is less

24. The limitation period in Term Loan is ……………. years from the date of Default in the payment of any of the installments or from the date of acknowledgement of debt/liability in writing by the borrowers and the guarantors or his/her authorized agents.a) 3b) 6c) 9d) 12

25. The limitation period in Equitable Mortgage is ……………. years from the date when themortgage debt falls due, i.e. when a default takes place and the Bank makes a demandon the borrowera) 3b) 6c) 9d) 12

26. Housing loan can be given for the purpose ofa) purchase a plot of land for purpose of construction of houseb) purchase /construct a new house/flatc) purchase an existing (old) house / flat or extend an existing housed) All of the above

27. All of the aboveHousing loan can be given for the purpose ofa) repair or renovate an existing house /flatb) takeover of Home Loans from other Banks/HFCs/FIsc) furnishing/interiors as part of the project costd) All of the above

28. If an individual owns two or more houses, singly or jointly then the exposure for the third house onwards / purchase of plot will be treated as under which category of Home Loans.a) CRE b) Normalc) Cannot financed) Realty


29. In a Housing loan normally how many co-borrowers can avail the loan?a) 3b) 4c) 2d) 5

30. In cases where the co-applicants are unrelated to each other, who may permit the relaxation for acceptance of non-related co-borrowers, provided the repayment is made through an account with Bank in the name of all borrowers and sanctioning authority is satisfied with the reasons furnished by the unrelated co-borrowers for acquiring the property in their joint names.a) DGM (B&O)b) GM (Network)c) Regional Manager of the Branchd) None of the above.

31. Form-16 or ITR for last how many years are required for all salaried applicants in case of housing loana) 3b) 2c) 1d) 5

32. I.T. Returns for last how many years will be obtained for all non-salaried applicants in case of housing loana) 2b) 3c) 1d) 4

33. 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 equivalent to the applicant’sa) Net Monthly Income(NMI)/Net Annual Income (NAI)b) Gross Monthly Income/Gross Annual Income c) Bothd)None

34. Expected rent accruals should not be considered in case of which category of Home Loansa) SBI-Realtyb) CRE Home Loansc) Gram Niwasd) None of the above

35. The maximum loan amount for repairs / renovations should not normally exceed Rs.__


lacsa) 10.00b) 15.00c) 20.00d) None of the above

36. Physical verification of properties mortgaged to the Bank must be carried outand recordeda) After every six monthb) After every one yearc) At each of disbursementd) Not required)

37. In case of Home Loan of Rs. 1 crore & above, how many Valuation Reports from different empanelled Valuers of the Bank should be obtaineda) 2b) 3c) 4d)1

38. In case of Home Loan of Rs. 1 crore & above, how many Title Investigation Report (TIRs) from different empanelled Advocates of the Bank should be obtaineda) 2b) 3c) 4d)1

39. Address of CERSAI site isa) www.cersai.org.inb) www.cersai.nic)inc) www.cersai.gov.ind) None of the above

40. A Review should be done by the Builder Tie-up Approving Authority at the interval of how many months to assess the business booked under the Tie-Ups.a) 12 b) 24c) 36d) 48

41. NPA Housing loan with outstanding of Rs.10 crs and above shall be migrated toa) SAMBb) SARBc) Any of the aboved) None of above

42. NPAs with outstanding of Rs.10 lacs and less than Rs.10 crs shall be migrated to


a) SAMBb) SARBc) Any of the aboved) None of above

43. Home loans for purchase of plot of land for the construction of a Dwelling unit is known asa) Sbi Realtyb) SBI Tribal Plusc) Gram Niwasd) Sahayog Niwas

44. Maximum Loan Amount can be given in Sbi Realty Home loana) Rs.10.00 cr.b) Rs.5.00 cr.c) Rs.15.00 cr.d) Rs.20.00 cr.

45. In case of Home loan Realty, maximum period for construction of house is how many years from the date of availment of the loan.a) 4b) 2c) 6d) None

46. Maximum permissible EMI/NMI ratio is what percent in case of Sbi Realty Home loan.a) 30%b) 40%c) 50%d) 60%

47. Maximum upper limit in case of Maxgain Home loan isa) 10.00 lacb) 1.00 crc) 10.00 crd) No Such limit.

48. Maximum Repayment period in case of Sbi Realty isa) 120 monthsb) 180 monthsc) 240 monthsd) 360 months

49. Minimum Loan amount in case of Maxgain Home loan isa) 10.00 lacsb) 20.00 lacsc) 30.00 lacsd) 5.00 lacs


50. Home Loan given to people residing in Hilly /Tribal areas is known asa) Maxgainb) Sbi Realtyc) Sahyog Niwasd) Sbi tribal plus


Customer Service & Digital Banking Compiled by- Sh. Deepak Swami CM -Training

1. What is the full form of CMSa) Complaint Management System b) Comprehensive Master Solutionc) Comaparative Metric Service d) None of the above

2. What is the full form of CEEPa) Customer Experience Excellence Programme b) Customer Energy Efficient Projectc) Credit Efficient Energy Programme d) None of the above

3. Customers can register complaints pertaining to following categories at Contact Centre / Branches through Complaint Management System: -a) ATM/POS/PG related complaints.b) ATM Re-pin request. .c) NEFT Remittances d) All of the above

4. Which one is correct about monthly targets for Bank Executives to meet Customers and enter observations in Customer Call dash board as per Mission 110% campaign a) Circle CGM – 5b) DGM(B&O) and Business Heads – 10 & RMs – 10c) BMs/Division Managers/RelationshipManagers/FO – 15d) All of the above

5. As per Mission 110% campaign Average waiting time in CEEP branches should come down toa) <15Minutes b) <25Minutes c) <35Minutesd) <20 Minutes

6. As per Mission 110% campaign there should be a reduction of _______ in number of Complaints filed with Consumer Forum and Banking Ombudsman (Over the average respective complaints received in the preceding Six months) a) 50% b) 25% c) 35%d) 20%

7. As per Mission 110% campaign Pension related complaints should be a) nil b) reduced by 10%c) reduced by 20%


d) reduced by 40%

8. As per Mission 110% campaign which complaints should be Nil a) Pension related complaints b) Transfer of Accountc) Settlement of Deceased assets d) All of the above

9. As per Mission 110% campaign availability of ATMs / CDMs to be maintained at minimum of a) 92%b) 95%c) 98%d) 100%

10. If customer is unable to visit the Branch, he may lodge his complaint on SMS Unhappy channel by sending SMS ‘UNHAPPY’ to numbera) 8008 20 20 20 b) 8008 99 99 99c) 8008 10 10 10d) 8555 55 55 55

11. In case of difficulty with the Branch, or unsatisfactory reply in respect of complaint lodged with the Branch/Alternate channel, the customer can approach the a) Assistant General Manager [Regional Business office (RBO)] b) General Manager (Network) of the Local Head Office under whose administrative control the Branch functionsc) None of the aboved) a & b

12. If a customer sends an email to [email protected] or other mail addresses of our Bank executives it will be reverted back to him/her by an automated system from the email ID a) [email protected] b) [email protected]) Branch Managerd) all of the above

13. Within the overall maximum period of __________ weeks within which acomplaint needs to be redresseda) one b) twoc) threed) four

14. The complaint lodged by a customer is first assigned to the Branch for redressal. If the complaint is not redressed within 10 days, it is escalated to which office on the 11th day of first lodging of the complaint.


a) RBOb) AO c) LHOd) Corporate Centre

15. Help in ATM-cum-Debit card related operations, information relating to ATM related complaints including lodging of ATM disputed transactions, tracking of issue and dispatch of ATM card/ PINetc. are available on the Toll free helpline number a) 1800-425-3800 b)1800-112-211 c) 080-26599990 d) all of the above

16. In case the customer is not satisfied with the handling of his complaint, he maycontact the a) General Manager (Network) of the LHO b) The Customer Service Department at LHO / Corporate Centre.c) Either a or bd) Neither a or b

17. The status of complaint can be tracked also by one of our mobile appsa) SBI SAMADHAANb) SBI buddy c) SBI quickd) None

18. The Chief Nodal Officer at SBI, Corporate Centre, Mumbai for customer grievances redressal is a) The General Manager (Customer Service), Customer Service Departmentb) The Chief General Manager (Customer Service), Customer Service Departmentc) Bothd) None

19. Customer Relations Programmes shall be organized at all Branches at least once every _________ where staff and customers meet and interact freely on service related issues a) month b) quarter c) yeard) none

20. Customers’ Day shall be observed on ________ of every month.a) 15th b) 25th c) either a or bd) none

21. All staff training programmes of duration exceeding __ days, will have a session dedicated


for sensitizing the staff and imparting soft skills required for handling irate customers a) 1b) 2c) 3d) 4

22. Town hall meeting is an effective tool of a) enhancing the customer relationshipb) knowing the shortcomings of our systemc) giving a feeling of belongingness to our customersd) all of the above

23. The more you know your customers, the better you become at anticipatinga) your needs b) our needsc) their needsd) none

24. Banking Codes and Standards Board of India (BCSBI) was set up by Reserve Bank of India in which yeara) 2006b) 2007c) 2008d) 2009

25. Good customer service can help us toa) attract the incentives to staffb) attract new customers and make existing customers happyc) get the desired results from work done for the customersd) none

26. For a customer who is critical, we need to deal him witha) knowledge of services b) knowledge to staffc) knowledge of placesd) none

27. How many elements are there in employee- customer contact situationa) 2b) 3c) 4d) 5

28. For a customer who is impatient, we need to deal him witha) Impatienceb) Speedc) Anger


d) None

29. Whichever seat you may be working, draw up a a) list of the most important customers b) list of the most disturbing customersc) list of the most interrupting customers d) none

30. The ultimate aim for knowing the list of customers is a) That every customer gets normal servicesb) That every customer gets excellent servicesc) That every customer gets details of servicesd) None

31. Customer Service can be described as a) Sort of products produced by manufacturerb) Sort of services the customer expectsc) Sort of behaviour of customer to sellerd) None

32. Customer Service can be of a high standard only ifa) Every staff member makes his contributionb) No staff member makes any contributionc) No staff member is doing any effortd) None

33. When calling on a customer, being with somethinga) of interest to him b) of advantage to himc) useful to himd) all of the above

34. Customer values sincerity becausea) It creates good feeling and trust b) It creates bad feeling and distrustc) It generates bad ideas and opinions d) None of the above

35. The customer judges the quality of bank's service by thea) Speechb) Attitude c) Mannerismsd) None of the above

36. For good customer service, we need toa) Connect to the business of the potential customer b) Maintain distance from the customer


c) Connect to the customer emphatically and personnallyd) None of the above

37. Treating your employees well will result in a situation wherea) They will have disregard for customersb) They will have disregard for organisationc) They will have high regard for customersd) None of the above

38. One of the ten commandents of customer service suggests that if something goes wronga) Be angry b) Be evasivec) Apologised) None of the above

39. Basic needs of the customers are a) Very Complex b) Very simple c) Very cuted) None of the above

40. While talking to an irate or impatient customer over phonea) Be specially agressive and impatientb) Be directive and argumentativec) Be especially courteous, sympathetic and listen patientlyd) none of the above

41. For a customer who is talkative, we need to deal him with a) Talking in details b) Courteous brevityc) Not talking d) None of the above

42. When you meet the customer you representa) Yourselfb) Your personal familyc) SBId) None of the above

43. We should regard a customera) As an interruption in our workb) As a burden on our workc) As part and purpose of our workd) None of the above

44. For a customer who is insulting, we have to deal him with a) Anger


b) Annoyancec) Self control d) None of the above

45. Customer Service at the branch is a) An individual effortb) A team effortc) A useless effortd) None of the above

46. A customer who is skeptical, we need to deal him in a a) Rough mannerb) Tough mannerc) Candid mannerd) None of the above

47. Unless you have the job knowledge, you willa) Not be able to guide the customerb) Be able to answer the customerc) Be able to guide customer properlyd) None of the above

48. More appropriately a customer can be defined asa) A visitor to the bank premisesb) A person who praises banking servicesc) A user or potential user of banking servicesd) None of the above

49. If a customer is served to his satisfaction, the organisationa) can grow and prosperb) can go downc) can incur lossesd) none of the above

50. For a customer who is intelligent, we need to deal him witha) Lack of knowledge b) Being over intelligentc) Efficiencyd) None of the above

51. For a customer who is old, we need to deal him witha) Rudelyb) Hurriedlyc) Sympathyd) none of the above

52. One of these is not a pre-requisite to approach the Banking Ombudsman:


a. Customer must first bring the grievance in writing to the Bankb. Bank must have given a reply to the customerc. If the customer does not receive any reply within 30 daysd. If the bank has given a reply but the customer is not satisfied with such reply

53. A customer lodged a complaint with XYZ Bank for deficiency in service but did not receive a reply. She should approach the Banking Ombudsman within _______ from the date of complaint.a. One monthb. One yearc. One month and one yeard. Three years

54. As per simplified KYC Norms customers need not produce documentary proof forIdentification, if they intend to maintain balances not exceedinga. Rs. 50000b. Rs. 70000c. Rs.100000d. Rs. 25000

55. As per simplified KYC Norms customers need not produce documentary proof forIdentification, if they intend to maintain balances not exceedinga. Rs. 50000b. Rs. 70000c. Rs.100000d. Rs. 25000

56. Risk of a Cash Credit customer not repaying the balance outstanding is considered asa. Market Riskb. Settlement Riskc. Credit Riskd. Liquidity Risk

57. Immediate Credit of outstation cheque can be done up toa. Rs.15000b. Rs. 30000c. Rs.10000d. Rs. 7500

58. If a bank wants to change the minimum balance requirement, it is required to inform itscustomers through its website, at least _____ days before changing.a. 15 daysb. 10 daysc. 30 daysd. 45 days

59. What is the periodicity of Customer Service Committee Meeting at Branches?


a. Bi-Monthlyb. Quarterlyc. Half Yearlyd. Monthly

60. When will the debit raised in Customer’s A/c be restored, once fraud is established?a. Immediatelyb. After Conclusion of Staff Accountabilityc. After Police Investigation is overd. After FIR is filed

61. Controllers’ presence is required in Customer Service Committee Meeting conducted bybranches ina. Minimum of two meetings during a yearb. Minimum of one meeting in a yearc. Minimum of three meetings during a yeard. No such requirement

62. An Account Payee crossed cheque is presented for credit to a third party’s a/c by a customerother than the payee. What should be done?a. Cannot be creditedb. Can be credited if endorsement was therec. Can be credited if the depositor is knownd. None of these

63. Whether effective complaint handling system should provide prompt feed back system from the customera. Yes, It is requiredb. No, it isn't required

64. Psychological Value to the customer meansa. His satisfactionb. His feeling of securityc. General feeling of euphoriad. All of the Above

65. Customer orientation is the “business seen from the point of view of its final result, i.e. fromthe customer's point of view."a. trueb. false

66. What is customer value ?a. Psychological Valueb. Economical Valuec. Functional Value


d. All of the Above

67. What actions if taken by a banker would make him customer orienteda. By being knowledgeableb. By not shocking or surprising the customersc. Being responsive to the customersd. All of the Above

68. SBI’s Compensation Policy does not covera. Collection of chequesb. Erroneous Debit /other debits to accountsc. Issue of ATM/Debit Cardsd. Delay in granting personal loan

69. The Reserve Bank of India has set up the Banking Codes and Standards Board of India(BCSBI) ina. 2004b. 2005c. 2006d. 2007

70. The customer expects us to keep our promise of service quality to them and being prompt in doing all right things, rightly.a. trueb. false

71. Sometimes customer, due to ignorance, may expect us to act in a manner which may goagainst some bank policies or laws, so we woulda. Ignore themb. Send them to the managerc. Help themd. Explain them why we are unable to help them

72. What may be the reasons for the customer if he does not decide to complain?a. Does not think it will do any goodb. Avoids confrontationc. Lacks expertise i.e. how to complaind. All of the above

73. Copies of the Citizens’ Charter are available to all our customers at oura. Branchesb. Administrative officesc. Web sited. All of the above

74. Economical Value to the customer means :a. The value for money he receives


b. The value of relationshipc. The interest he receivesd. Both a & b above

75. The Citizen Charter of SBI provides fora. Information on various facilities/services for customersb. Ensures high standards of accountability, responsibility and transparency in bank dealingsc. Comprehensive information on Bank’s Grievance redressal mechanismd. All of the above

76. State Bank of India website has facilities for the customers toa. Register online complaintsb. Download complaint formc. Download complaint form for ATM related issuesd. All of the above

77. What is easiest option for a customera. Lodge a complaintb. Switch the bankc. Negative word of mouth publicityd. Take legal action for redressal

78. State Bank of India website has facilities for the customers to register their views/experience regarding Bank's services on the Web Site.a. trueb. false

79. The SBI’s new vision statement carries our aspiration to be first in customer service.a. trueb. false

80. Service Failures does not include providing slow or erratic service.a. trueb. false

81. What is the responsibility of State Bank employees toward our customers?a. Be customer orientedb. Be Able to elicit any customer dissatisfactionc. Responsible to offer ready solutions to the customer’s problemsd. All of the above

82. The various channels through which the customer can lodge a complaint with State Bank of India are:a. Approach the branch headb. Meet senior executives of the Bank on 15th of every monthc. Suggestion cum complaint box in the Banking Halld. All of the above


83. Being insensitive to customer needs and not providing him the expected standards ofservices can lead to service failure.a. trueb. false

84. The Code of Commitment to Customers (BCSBI CODE) is bank’s commitment of to provide Banking services of a high order to individual banking customers.a. trueb. false

85. The Code of Ethics for SBI is a voluntary code adopted by our Bank, which aims to achievesynchronization of best practices while dealing with our loan customers in India. a. trueb. false

86. Project “SMS Unhappy” is convenient to the customer because it isa. Anytime & Anywhereb. Speedyc. Economicald. All of the above

87. According to SBI’s new mission statement going or working beyond the call of duty will makeour customers feel valued.a. trueb. false

88. If we are unable to provide for the special needs of the customer it would not be a servicefailure.a. trueb. false

89. How many links are available on the “Customer Care” page of SBI’s website?a. 12b. 13c. 14d. 15

90. Functional Value to the customer means :a. The invitation to a functionb. The convenience & enjoyment experienced by the customerc. The service provided by the service providerd. b) & c) both

91. State Bank of India contact centre numbers for the customers area. 1800 10 22 10 & 1800 424 3900


b. 1800 11 22 11 & 1800 425 3800c. 1800 15 20 15 & 1800 415 3700d. 1800 17 25 17 & 1800 435 3800

92. The Cheque Collection Policy of SBI does not covera. Cheques/instruments lost in transit/in clearing processb. Time frame for collection of local/outstation instrumentsc. Immediate credit of outstation/local cheques to deposit accounts of individuald. Issue of cheque book to customer

93. The SBI’s new mission statement hasa. 5 clausesb. 6 clausesc. 7 clausesd. 8 clauses

94. The SBI’s new mission statement does not emphasize provision of service to the remotestparts of our countrya. trueb. false

95. What developments have made it more important to be customer oriented?a. Rising competitionb. Rising customer expectationsc. Customer’s experience in one industry influences his expectation from other industriesd. All of the Above

96. If customer is complaining, he is motivated bya. Expected solution to the problemb. Desire to solicit our sympathy for his predicamentc. Desire for an emotional release from the frustration of the problemd. All of the above

97. Which of the following is not the option available in SBI-Pay for money transfera. VPA (Virtual Payment Address)b. QR (Quick Response)c. Aadhaar numberd. IFSC

98. Which of the following is incorrect in respect of SBI-Paya. Rs. 10,000/- per transactionb. Rs. 25,000/- per dayc. 20 debit transactions per dayd. 20 credit transactions per day

99. Which of the following is correct with respect to escalation matrix in SBI-Paya. [email protected]


b. [email protected]. [email protected]. All of the above

100. How many Bank's in India are UPI enableda. 25b. 30c. 32d. 34

101. Which of the following is incorrect in respect of BHIMa. Rs. 10,000/- per transactionb. Rs. 20,000/- per dayc. 20 debit transactions per dayd. None of the above

102. What is the monthly cap in respect of Bhim Aadhaar SBI for consumersa. Rs. 20,000b. Rs. 25,000c. Rs. 50,000d. Rs. 1,00,000

103. Which of the following is not the salient feature in respect of Bhim Aadhaar SBIa. No monthly rental(at present)b. No MDR (at present)c.Consumer should have BAS App on his mobile phoned. Aadhaar number along with Aadhaar linked account is sufficient for the consumer

104. Support desk tollfree number for Bhim Aadhaar SBIa. 1800425764b. 1800112211c. 1800764425d. 1800296666

105. For viewing full transaction report which mode of request is to be useda. SMSb. Missed call from bank's registered numberc. E-maild. All of the above

106. Which of the following is correct in respect of fund transfer in SBI Buddya. Mobile number+MMIDb. Account no.+IFSCc. Both of the aboved. Any of the above

107. How many languages are available on SBI Buddy platform


a. 12b. 13c. 14d. 15

108. Which of the following is not the Tab available in SBI Buddy applicationa. Send Moneyb. Add Moneyc. Ask Moneyd. Pay Money

109. Which of the following is not correct for SBI Buddy for escalation matrixa. 1800 11 2211 (toll-free)b. 1800 425 3800 (toll-free)c. 080 26544400d. [email protected]

110. What is the monthly limit for SBI Buddy Merchant having current account with usa. Rs. 1,00,000b. Rs. 2,00,000c. Rs. 5,00,000d. Unlimited

111. Which of the following service is not available to sub-merchants in SBI Buddy Merchant Appa. Paymentsb. My Transactionc. Recieptsd. My Payment Request

112. Which of the following CINB variant is issued on CIF basisa. Khata Plusb. Saralc. Vyapaard. Vistaar

113. Which of the following CINB variant is issued from CBSa. Khata Plusb. Saralc. Vyapaard. Vistaar

114. State Bank Collect facility is not available in which of the following CINB varianta. Khata Plusb. Saralc. Vyapaard. Vistaar


115. Form C1 in CINB is fora. Registration of Corporateb. Registration of Regulatorc. Registration of Administratord.Terms and Conditions




119. Which of the following is not a feature associated with Gift carda. Issued for Rs. 500/- to Rs. 50,000/-b.Validity - 5 yearsc. Can be used on PoS or for online shoppingd. Card is Non-reloadable

120. Which of the following is not a feature associated with Smart Payout Carda. Issued for Rs.100/- to Rs. 10,000/- with monthly ceiling Rs. 25,000/-b.Validity - 10 yearsc. Can be used on PoS or for online shoppingd. Card is Non-reloadable

121. Which of the following is not a feature associated with eZ Pay Carda. Reloadable (up to Rs.25,000/-)b. Validity - 10 yearsc. Can be used on PoS or for online shoppingd. Facility 0f cash withdrawal at ATM

122. Which of the following is not a feature associated with SBI FASTaga. Can be used at all National Highway Toll Plazasb. Cashless payment of exact amount by direct debit from the linked accountc. Separate lane for FASTag vehicles - Faster movement through toll plazasd. Validity - 10 years


123. IMPS facility is available through RINB to customers a. During business hours of the Home branch b. 8:00 am to 8:00 pmc. 10:00 am to 6:00 pm d. 24/7

124. An NRI can get OTP ina. Registered Mobile No b. Registered e-mail idc. Either a or b d. NRI cannot get OTP

125. What is the maximum amount that a customer can transfer funds under Statebank Mcash per transaction?a. Rs 5101 b. Rs 2202c. Rs 5505 d. Rs 1101

126. MMID comprises of a. 7 Alphabets b. 7 digitsc. 7 alpha numerics d. None of these

127. IMPS is conducted bya. RBI b. SBIc. IMPS CORPd. NPCI

128. Who is the service provider of Virtual card of State Bank?a. AMEX b. Rupayc. Visa d. Master

129. What is the amount for which purchase protection is provided for Gold card debited?a. Entire amount of purchases on a day b. 50000c. 5000 d. 10000

130. The full form of USSD isa. Unstructured supplementary service datab. Unstructured source service datac. Unstructured supplementary service definition


d. Unstructured source service definition

131. The full form of CORE isa. Centralised Online Real Time Environmentb. Centralised Online Real Excessc. Central Online Real Time Environmentd. Centralised Online Real Environment

132. How many digits are there in PPKa. 8b. 10c. 12d. 14

133. In LOTUS environment DAC stands fora. Digital Access Controlb. Document Archival Centrec. Data Access Controld. Data Archival Centre

134. Full form of FAST in our CMP product SBI FAST isa. Funds alloted in shortest timeb. Funds available in smallest timec. Funds available in shortest timed. Funds alloted in shortest time

135. Spam mail from known source isa. Phishingb. Smurfingc. Spoofingd. Hacking

136. Technical support for sbi INTOUCH is extended bya. Accentureb. Prizm Technologyc. Tech Mahindrad. Infosys

137. Which of the following is social banking application of SBIa. SBI Mingleb. SBI inCUBEc. SBI Scribed. SBI Exclusif

138. What is the site address of our e-learning site a. https://learning.sbi.co.in b. https://mylearning.sbi.co.in


c. https://mybanklearn.sbi.co.in d. https://mybanklearning.sbi.co.in

139. Which company has developed Active Directory Services a. Oracle b. Microsoft c. State Bank of India d. System Networks Ltd.

140. SBI cards launched credit cards with EMV chip security features. EMV stands for a. Euro Pay, Master Card & Visa b. Electronic Monitoring Vehicle c. Electronic Master Value d. Electronic Master Card & Visa

141. New user registration for INB get activated within a. Immediately b. 04 Hours c. One Hour d. One Day

142. CVV in ATM card stands a. Card Visible value b. Card verification variant c. Card Verification value d. Card verification variable

143. VISTAAR facility in CINB has Single Transaction Limit Rs ____ without day cap. a. 200 cr b. 2000 cr c. 50 cr d. 500 cr

144. ATM card can also be blocked by SMS last four digits of the card number to a. 567878 b. 567575 c. 567676 d. 565757

145. The data related to online VVR allotment and checking would be available in CBS uptoa. 1 Yearb. 3 Yearsc. 5 Yearsd. 10 Years

146. Head Quarters of SWIFT is ata. Brussels


b. Genevac. Londond. Paris

147. The Encryption Mechanism implemented for online banking www.onlinesbi is?a) 32 Bit SSL b) 64 Bit SSLc)128 Bit SSL d) 256 Bit SSL

148. BHIM stands fora) Bharat interface for money b) Bharat internet for moneyc) Bhartiya interface for moneyd) None

149. Maximum limit for per transaction in BHIM isa) Rs.5,000.00b) Rs.15,000.00c) Rs.10,000.00d) Rs. 20,000.00

150. Maximum limit for per day transaction in BHIM isa) Rs.5,000.00 b) Rs.15,000.00(c) Rs.10,000.00(ci) d) Rs.20,000.00

151. STATE BANK BUDDY can be used bya) Customers onlyb) Non-Customer onlyc) Bothd) None

152. What is the wallet limit of Buddy for nil KYC customersa) Rs.20,000.00 b) Rs.25,000.00c) Rs. 50,000.00 d) Rs.40,000.00

153. What is the wallet limit of Buddy for KYC compliant customersa) Rs.20,000.00 b) Rs.25,000.00c) Rs. 50,000.00 d) Rs.40,000.00

154. What is transaction limit in Buddy for Nil KYC user


a) Rs. 2000/- per transaction, Rs. 15,000/- daily, Rs. 20,000/- monthly for 'Nil KYCb) Rs. 3000/- per transaction, Rs. 20,000/- daily, Rs. 20,000/- monthly for 'Nil KYCc) Rs. 5000/- per transaction, Rs. 15,000/- daily, Rs. 15,000/- monthly for 'Nil KYCd) None

155. What is transaction limit in Buddy for Full KYC usera) Rs. 10,000/- per transaction,Rs. 20,000/- daily, Rs. 1,00,000/- monthly for 'Full KYC'b) Rs. 5000/- per transaction,Rs. 20,000/- daily, Rs. 1,00,000/- monthly for 'Full KYC'c) Rs. 5000/- per transaction,Rs. 10,000/- daily, Rs. 1,00,000/- monthly for 'Full KYC'd) None

156. Maximum limit of Virtual card made using RINB is a) Rs.30,000b) Rs.20,000c) Rs.40,000d) Rs.50,000

157. For SBI Exclusif, Home loan limit of customer should bea) Rs.50.00 lacs and above b) Rs.75.00 lacs and abovec) Rs.1.00 Cr and above d) Rs.80.00 lacs and above

158. For SBI Exclusif, monthly salary credit in account of customer should bea) Rs. 3 Lacs and above with SBI b) Rs. 1.5 Lacs and above with SBIc) Rs. 1 Lacs and above with SBI d) Rs. 2 Lacs and above with SBI

159. Per day financial transaction limit in CINB Saral account is a) Rs.10.00 lac b) Rs.20.00 lacc) Rs.50.00 lac d) Rs. 80.00 lac

160. Per day financial transaction limit in CINB Vyapar account is a) Rs.100.00 lac b) Rs.500.00c) Rs.50.00 lac d) No limit

161. In CINB Vyapar, per transaction limit for non-tax transaction isa) Rs. 50.00 lac b) Rs.200.00 lacc) Rs.100.00 lac d) None


162. In CINB Vistar, per transaction limit isa) Rs.50.00 Cr b) Rs. 500.00 Crc) Rs.100.00 Crd) None

163. Per day financial transaction limit in CINB Vistar account is a) Rs.500.00 Cr b) Rs.5000.00 Crc) Rs.50,000.00 CRd) No limit

164. The billers that you can pay with Buddy facility along with mobile area) Electricity b) DTH connectionc) Gas d) All the above

165. Name of software used by our Bank at AML-CFT Cell, Jaipur for generation ofSuspicious Transaction Report (STR) ?a) STR lock b) AM Lock provided by 3i InfoTechc) MS Lock d) None of these

166. PPK packet contains __PPKs?a) 50 b) 100c) 20 d) None of these

167. What is IMPS?a) Immediate Payment Service (IMPS)b) Immediate Mobile Servicec) Maximum 10 cardsd) None of the above

168. URL for branch login in Internet Banking ?a) www.onlinesbi.com b) www.branchonlinesbi.comc) www.inbintranet.comd) None of the above

169. What is the full form of YONO?a) You only need oneb) Your one need onec) Your only needs offer


d) None

170. Buddy is available in ____languages?a) 23b) 15c) 13d) 18

171. NPCI stands fora) National payments corporation of Indiab) National payments centre of Indiac) National payment centralised system of Indiad)Notional payments centre of India

172. AEPS stands fora) Aadhar entered payment systemb) Aadhar enabled processing systemc) Aadhar enabled paymet servicesd) Aadhar enabled payment system

173. What is SBI FASTag: is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid or savings account a) Trueb) False

174. If the SBI FASTag account(prepaid), is having limited kyc, then _____ is the maximum balance amount.a) Rs. 20,000.00b) Rs. 30,000.00c) Rs. 40,000.00d) Rs. 50,000.00

175. If the SBI FASTag account(prepaid), is having limited kyc, then monthly reload amount is capped ata) Rs. 20,000.00b) Rs. 30,000.00c) Rs. 40,000.00d) Rs. 50,000.00

176. SBI FAST a CMP product is under the control ofa) NBGb) CAGc) TBGd) IBG

177. Which report indicates the difference between BGL-CGL cash differencea) GLCNTR


b) GLCOMPc) Both a & bd) Cash report

178. OCAS stands fora) Online customer acquisition system b) Online customer acquisition solutionc) Offline customer acquisition systemd) Offline customer acquisition solution

179. State Bank Connected is maintained and supported bya) Datacraftb) HCLc) Wiprod) Data Dimension Ltd

180. Account statement can be accessed through SBI SAMADHAN a) From 6 am to 10 pmb) From 6 am to 8 pmc) From 8 am to 8 pmd) From 8 am to 10 pm

181. The primary centre for anti-virus solution is at a) Mumbaib) Chennaic) Hyderabadd) Bangalore

182. Fx-out per transaction limit is increased toa) $ 2500b) $ 5000c) $ 10000d) $ 25000

183. Maximum Government Tax that can be paid by RINB isa) Rs. 10 lacsb) Rs. 50 lacsc) Rs. 2 crd) Rs. 5cr

184. mCash Daily limit?a) Rs.5000 per day; Rs.25000 Per Monthb) Rs.10000 per day; Rs.50000 Per Monthc) Rs.5000 per day; Rs.50000 Per Monthd) Rs.1000 per day; Rs.25000 Per Month


185. OTMS stands fora) Online transaction monitoring solutionb) Online transaction monitoring systemc) Offline transaction monitoring solutiond) Offline transaction monitoring system

186. How many notes can be deposited at a time?a) Up to 500 notes in a single transactionb) Up to 50 notes in a single transactionc) Up to 200 notes in a single transactiond) Up to 100 notes in a single transaction

187. What is MDRa) It is the commission charged by customer to the merchantb) It is the commission charged by merchant to the acquirerc) It is the commission charged by acquirer to the customerd) It is the commission charged by acquirer to the customer

188. The 'On-Us” Transaction in POS isa) Where issuer and acquirer are sameb) Where issuer is different and acquirer is samec) Where issuer and acquirer are differentd) Where issuer is same and acquirer is different

189. e-Z card Validity?a) 3 yrsb) 5 yrsc) 10 yrsd) Unlimited

190. e-Z card is association with?a) Visab) Maestroc) Mastercardd) None of the above

191. Maximum amount for Virtual Card?a) Rs. 25000b) Rs. 50000c) Rs. 10000d) Rs. 100000

192. IMPS monthly limita) Rs. 50,000 p.m if date is fully encrypted/protected.b) Rs. 2,50,000 p.m if date is fully encrypted/protected.c) Rs. 2,00,000 p.m if date is fully encrypted/protected.d) Rs. 1,00,000 p.m if date is fully encrypted/protected.


193. CTS image containsa) Magnetic Inkb) Void pentographc) Both a & bd) None of the above

194. SBI Debit Card is also known asa) Cash Trustb) Cash Plusc) Cash Accountd) Cash Ready

195. Which among the following is known as pillars of information security?a) Confidentiality b) Integrity c) Availabilityd) All of these

196. How many Virtual Cards can be issued at a time?a) 25b) 5 c) 10 d) No Limit


NPA MANAGEMENT Compiled by- Sh. Tarun Kumar CM -Training

1. Post sanction inspection in case of NPA housing loan is to be done: a) Half yearly b) Quarterlyc) Monthly d) Yearly

2. A non performing asset (NPA) is a loan or an advance where, Interest and/ or installment of principal remain overdue for a period of more than ____ in respect of a term loan.a) 30 days b) 60 days c) 90 days d) 120 days

3. If the realizable value of the security is less than 10 per cent of the outstanding the asset should be straightaway classified as ____ asset.a) Sub-Standard b) Doubtful c) Doubtful > 3 years d) Loss

4. Sub standard assets would attract _______ provisiona) 10% b) 15% c) 25% d) 30%

5. All existing AUCAs of Rs. ______ lacs & above in NBG have to be migrated to SAMGa) 20.00 lacsb) 10.00 lacsc) 15.00 lacd) 05.00 lacs

6. Erosion in the value of security can be reckoned as significant when the ___________ of the security is less than 50 per cent of the value assessed by the banka) Market value b) Realizable value c) Guideline valued) None of the above

7. The unsecured exposures which are identified as substandard would attract additionalprovision of:a) 10% b) 15% c) 25% d) 30%


8. The provision for Direct advances to agricultural and Small and Micro Enterprises (SME) sectors isa) 5.00% b) 2.50% c) 0.25% d) 1.00%

9. The provision for Advances to Commercial Real Estate (CRE) Sector isa) 5.00% b) 2.50% c) 0.25% d) 1.00%

10. The provision for advances to Commercial Real Estate – Residential Housing Sector(CRE – RH)a) 0.75% b) 2.50% c) 0.25% d)1.00%

11. If any funds borrowed from banks / FIs are utilized for purposes un-related to the operations of the borrower, to the detriment of the financial health of the entity or of the lender, it is termed asa) Diversion of funds b) Siphoning of funds c) Misutilisation of fundsd) None of the above

12. NPAs with outstanding of Rs.10 crs and above shall be migrated toa) SARBb) ARCc) SAMB d) SARC

13. NPAs with outstanding of Rs.10lacs and less than Rs.10 crs shall be migrated to a) SARBb) ARCc) SAMB d) SARC

14. Action under SARFAESI Act cannot be initiated if the amount due is less than _________ of the principal amount and interest thereon a)5% b)10% c)15% d)20%


15. Under SARFAESI Act, the demand notice 13(2) is issued to the borrower and guarantor.The time frame mentioned in the notice isa)15 days b)30 days c)45 days d)60 days

16. Under SARFAESI Act, the time frame for the sale notice issued isa)15 days b)30 days c)45 days d)60 days

17. Under Lok Adalat dues upto __________ can be settleda)Rs. 5 lacs b)Rs.10 lacs c)Rs.15 lacs d) Rs.20 lacs

18. An account where the regular/ adhoc credit limits have not been reviewed/renewed within _______days from the due date/ date of adhoc sanction will be treated as NPa)a)90 days b)120 days c)180 days d)240 days

19. Asset Reconstruction Companies have been formed as per the recommendations ofa) Narasimham committeeb) Ojha committeec) Rangarajan Committeed) Kalia Committee

20. Minimum Capital of Asset Reconstruction Company isa)Rs.50 lacs b) Rs.1 Crore c) Rs.2 Croresd) None of the above

21. A bank can approach an ARC to take over the ________assetsa) Substandard b) Doubtful c) Bothd) None

22. The Bank‘s policy is to ensure containment of NPAs to the least is in conformitya) with RBI guidelinesb) with international standards


c) with IBA guidelinesd) with GOI GUIDELINES

23. The bank has to file cases in DRT for recovery of debts of ______ and above.a) Rs. 5 lacs b) Rs.10 lacs c) Rs.15 lacs d) Rs.20 lacs

24. Advances against term deposits, NSCs eligible for surrender, IVPs, KVPs and life policies need not be treated as NPAs, provided…….a) Interest is served within 90 days from due dateb) Adequate margin is available in the accountsc) Security coverage is more than 75 %d) None of the above

25. For the purpose of guidelines on NPA classification of agricultural advances….a) Long duration‖ crops would be crops with crop season longer than one yearb) Crops, which are not ―long duration‖ crops, would be treated as ―short duration‖ cropsc) Both A & B are correctd) None is correct

26. Collaterals such as immovable properties charged in favour of the bank should be got valued once in ______years by appointed valuers.a) 2 b) 3 c) 4d) 5

27. Stock statements relied upon by the banks for determining drawing power should not be older than ______ months.a) 1 b) 2 c) 3d) 6

28. Asset classification of accounts under consortium should be based ona) The record of recovery of the entire consortiumb) The record of recovery of the consortium leaderc) The record of recovery of the individual member banks and other aspects having a bearing on the recoverability of the advancesd) None of the above

29. The policy on income recognition has to bea) Objective and based on the record of recoveryb) The banks should not charge and take to income account interest on any NPAc) Both A & B


d) Only B

30. Unsecured exposure is defined as an exposure where the realisable value of the security, as assessed by the bank/approved valuers/ Reserve Bank‘s inspecting officers, is not more than percent, ab-initio, of the outstanding exposurea) 10 b)15 c) 20d) 25

31. Which of the undernoted statement/(s) is/are true in case of provision on Standard Assets.a) The provisions on standard assets should not be reckoned for arriving at net NPAsb) The provisions towards Standard Assets need not be netted from gross advances but shown separately as 'Contingent Provisions against Standard Assets' under 'Other Liabilities and Provisions Others' in Schedule 5 of the balance sheet.c) Only A d) Both A & B

32. The special mention account (SMA) guidelines are issued bya) Corporate centre of our bank b) IBA c) RBI d) LHO

33. Time norms for submission of SAR reporta) 10 days b) 30 days c) 60 days d) 90 days

34. In case of NPA Car loan accounts inspections would be made ________ a year. Inspection register will be maintained properly.a) twice b) thrice c) per month d) none

35. The NPA policy lays down the following principles, which should not be kept inmind for compromisea) to get maximum possible amount with minimum sacrificeb) realizable value of security charged to bankc) Location condition and marketability to the securityd) political reputation of the borrower and guarantor

36. The following BIFR cases A/Cs are not eligible for CDR mechanisma) Where promoters are interested in CDRb) Special investigation Audit (SIA) has been recommended by BIFR


c) Losses are due to external reason & unit can become viabled) All the above

37. Which of the following are not Basel securities:a) Gold ornaments under pledge to the Bankb) Kisan Vikas Patras / NSCsc) Securities issued by Central & State Govtd) Stocks hypothecated to Bank

38. The 'net loss' comprisesa) Notional loss and interest applied but not recoveredb) Actual loss and expenses incurred by the bankc) Actual loss and notional lossd) None of the above

39. CIBIL provide credit information on following segmenta) P Segmentb) SIB Segment c) Commercial Segmentd) Commercial & consumer segment

40. Accrued interest waived in the compromise settlement is debited toa) Charges b) P&L c) No entry is required d) Interest A/c


AGRI BANKING Compiled by- Sh. Tarun Kumar CM -Training

1. What percent of ANBC should go towards agriculture lendinga) 18b) 22c) 26.5 d) 40

2. Small farmer meansa) Land holding up to 2.5 acre of wet land or 5 acres of dry land b) Land holding up to 1.25 acre of wet land or 2.5 acres of dry land c) Land holding up to 2.5 acre of wet land or 2.5 acres of dry landd) None of the above

3. Marginal farmer meansa) Land holding up to 2.5 acre of wet land or 5 acres of dry land b) Land holding up to 1.25 acre of wet land or 2.5 acres of dry land c) Land holding up to 2.5 acre of wet land or 2.5 acres of dry landd) None of the above

4. AB-2 isa) Guarantee Deed b) Mortgage Deed c) Revival letter (Borrower d) Revival letter (guarantor)

5. AB-3 isa) Guarantee Deed b) Mortgage Deed c) Revival letter (Borrower d) Revival letter (guarantor)

6. AB-7 isa) Guarantee Deed b) Mortgage Deed c) Revival letter (Borrower d) Conversion of crop loan into term loan on account of crop failure.

7. Sericulture is related to a) Silk Production b) Fish farming c) Bee keeping d) Flower production

8. Apriculture is related toa) Mushroom cultivation b) Bee keeping


c) Fish farmingd) Mulberry cultivation

9. Apiculturea) Bee keeping b) Flower production c) Fish farming d) Silk Production

10. If the exploitation of ground water is between 70 – 90% it is termed asa) White Block b) Grey Block c) Dark Block d) Black Block

11. Service Area Approach had been recommended by thea) Ojha committee b) Rangarajan Committeec) Tarapore Committeed) Narasimham Committee

12. Which committee which recommended Self Help Groupsa) Kalia Committee b) Ojha committeec) Tarapore Committeed) Narasimham Committee

13. Agri Gold Loan can be sanctioned asa) Demand Loan b) Cash Credit c) Overdraft d) All the above

14. Yellow revolution refers toa) Textile b) Oil Seeds c) Cocoa d) Milk

15. Green revolution refers toa) Textile b) Oil Seeds c) Cocoa d) Food production

16. Black revolution refers toa) Rubber


b) Oil Seeds c) Cocoa d) Food production

17. The repayment due date for mono crop Kharif season isa) One year from the date of sanctionb) One year from the date of disbursementc) 31st January or date fixed by SLBC/DLTCd) 31st July or date fixed by SLBC/DLTC

18. The repayment due date for mono crop Rabi season isa) One year from the date of sanctionb) One year from the date of disbursementc) 31st January or date fixed by SLBC/DLTCd) 31st July or date fixed by SLBC/DLTC

19. For Irregular Crop Loans, the inspection periodicity isa) Once in 6 months b) As per Crop seasonc) Yearly d) Every month

20. Can Pre-Sanction Inspection of borrower units be done by Agricultural Assistants /Special Assistants / Senior Assistants who are members for Marketing and Recovery Teams?a) Yes. For all agriculture loans upto Rs.50,000/- b) No

21. What is DCB Register?a) Demand, Collection and Balance Registerb) Debit, Credit and Balance Registerc) Demand Collection Bookd) None of the above

22. The Minimum and Maximum loan amount that can be sanctioned under Kisan Credit Card (KCC) schemea) Minimum Rs. 10,000 and maximum Rs.25.00 lacsb) Minimum Rs. 25,000 and No maximum limitc) No minimum and No maximum limitd) No minimum and maximum Rs.25.00 lacs

23. The maximum limit amount, both short term production credit plus investment credit put together calculated during the 5 year period is called asa) Maximum Permissible Limit (MPL)b) Maximum Drawal Limit(MDL) c) Flexi KCC Limit d) None of the above


24. Collateral security is waived for a) KCC limit of up to Rs.________ laca) 1b) 2c) 3d) None

25. Processing charge is waived for KCC limit up to Rs. _______ lacs. a) 1b) 2c) 3d) None

26. Maximum loan limit in case of Arthias Plus:a) 25.00 lacb) 50.00 lacc) 75.00 lacd)100.00 lac

27. Margin in case of Arthias plus isa) 40.00%b) 30.00%c) 25.00%d)15.00%

28. Min. limit for SHG Gold card isa) Rs. 2.00 lacsb) Rs.5.00 lacsc) Rs. 3.00 lacs d) Rs.10.00 lacs

29. Minimum land holding required in case of modified tractor loan is ____acres.a)2 acres b)3 acresc) 5 acresd)4 acres

30. Minimum Margin in case of modified new tractor loan isa)20%b) 25%c) 15%d)10%

31. DCB register is to be prepared as on what date every year?a) 31st May b) 30th Aprilc) 30th June d) 31st July


32. Maximum limit under KCC is ----- Lakhsa)15 b) 20c) 75 d) No Limit

33. What is the validity of KCC Card as per the revised KCC Scheme guidelinesa) 4 Years b) 6 yearsc) 2 Years d) 5 Years

34. Under the KCC Scheme, Maintenance expenses can be included in the over all limit to a maximum extent of ----% of the original limitA .10% b) 20%c) 15% d) 25%

35. As per the revised KCC scheme the limit will be stepped up by ----% for every successive year(2nd, 3rd, 4th and 5th year)a) 20% b) 10%c) 15% d) 25%

36. Personal Accident Insurance Scheme to KCC Borrowers can be covered upto Maximum Age ?a) 75 Yearsb) 72 Yearsc) 70 Years d) 65 Years

37. Under PAIS to KCC Borrowers what is the ratio of fee borne by Bank and BorrowerA .1:2 b) 2:1c) 1:3 d) 3:1

38. What is the maximum coverage to a KCC Borrower under PAIS, who died due to accident ?a) 100000/- b) 25000/-c) 75000/- d) 50000/-


39. What is the validity of General Credit Card ?a) 3 years b) 5 yearsc) 4 yearsd) 1 year

40. What is the maximum repayment period under Modified New Tractor Loan Scheme ?"a) 5 years b) 9 yearsc) 7 yearsd) 6 years

41. No. of persons in a SHG shall not be more than ____ members ?A .10 b) 20c) 30 d) No limit

42. What is the minimum hours of work per annum required to get finance under Tractor Loan Scheme ?a) 600 hours b) 800 hoursc) 1000 hours d) 500 hours

43. What is the periodicity for inspection of a Irregular Tractor Loan accounta) Quarterly b) Monthlyc) Halfyearly d) Annually

44. KCC is sanctioned for the following purposesa) Crop production needs b) Allied Production needsc) Miscellaneous needs d) All the above

45. In Kisan Gold Card (KGC) how many number of loans can be sanctioned to a single borrower ?a) 3 b) 4c) 5 d) 6


INTERNATIONAL BANKING Compiled by- Sh. Rajesh Dahiya Mgr -Training

1. Exporter is in Hong Kong and Importer is in UK which of these Incoterms could apply:(i) CFR Hong Kong(ii) FOB London(iii) CIF Londona) Only (I)b) (i) and (iii)c) Only (iii)d) Any of them

2. NRI deposit rates are linked witha) Card rateb) Spot ratec) LIBORd) On-line rate

3. A letter of Credit has an expiry date of 28th May and a latest shipment of 7th May. No presentation period is specified. The goods are shipped on 3rd May. What is the latest date for presentation of documents?a) 17th Mayb) 18th Mayc) 24th Mayd) 28th May

4. Which of the following is incorrect w.r.t loans and advances to NRIs against their NRE /NRO/FCNR(B) deposits.a) The loan will not be made available to any third party either in India or abroad on the security of such deposits.b) The facility of premature withdrawal of NRE/FCNR deposits shall not be available where loans against such deposits are to be availed of.c) Interest will be applied at monthly intervals in both Rupee and Foreign Currency Loand) Loan can be granted for re-lending or carrying out agricultural/ plantation activities or for investment in real estate business

5. What is the minimum and maximum amount that can be remitted under SBI express US Rapid Remittance scheme per day?a) USD 50 and 5000c) USD 100, 5000b) USD 1000, 100000d) USD 2000, 50000

6. In a collection, who is the principal?a) The exporterb) The importerc) The exporter’s bankd) The importers bank


7. Which of the following is the product meant for NRIs residing in USA to send remittances to friends and relatives in India.a) SWIFTc) NRI Remittanceb) Global Remittanced) SBI Express US Rapid Remittance

8. The method of payment be agreed ona) At the time of shipmentb) When export documents are submittedc) When payment is being claimedd) In the sale contract

9. As per priority sector lending guidelines export credit should constitute what percentage of the total advance of a domestic commercial bank?a) 16%b) 11%c) 4%d) Export credit is not a priority sector lending

10. As per regulations of FEMA Person of Indian Origin (PIO) is a person who is a citizen of any country other than Pakistan and Bangladesh.a) He/She at any time held Indian Passportb) He/She or either of his/her parents/grand parents were citizens of India.c) He/She is a spouse of an Indian Citizen.d) All of the above

11. Unless otherwise specified in a Letter of Credit which is issued subject to UCPDC 500 and also UCPDC 600, documents must be presented for negotiation within ___ days from the date of shipment:a)10 daysb) 7 daysc) 15 daysd) 21 days

12. The maxim applied in respect of direct quotation isa) Buy Low, Sell Lowb) Buy High, Sell Lowc) Buy Low, Sell Highd) Buy High, Sell High

13. Bank has recently revised the FCNB Premium account, which one of the following modifications are not carried out ?a) It has been decided to permit forward contract booking upto 5 years maximumb) Customer can opt for taking final maturity in INR or one of the cross-currencies (USD,GBP, EURO, CAD, AUD or JPY).c) Authorized branches are advised to identify one or two officials to handle this product.


d) None of the above

14. Loan against FCNR(B) term deposits can be extended in :a) Rupee loans are only permitted.b) Foreign currency loans are only permitted.c) Either rupee or foreign currency loans (USD, GBP, EURO)are permitted.d) None of the above.

15. Credit reports on overseas suppliers on account of import bills directly received by importer is no longer required to be obtained by authorized dealer in cases where import bills does not exceed USDa) 1,00,000b) 5,00,000c) 3,00,000d) Not limit

16. One month outright forward rate for GBP/INR is 80.81/80.83 and the relevant swap points are 10/9, then the outright spot rate for GBP/INR is:a) 80.71/80.74b) 80.90/80.93c) 80.91/80.93d) 80.72/80.73

17. Where the export consignment is transferred/sold out to another buyer other than the original buyer, RBI's approval for reduction in the invoice value up to what percent is not required)a) 10b) 25c) 5d) Required in all cases

18. Which is the apex body for refinancing of pre and post shipment Export credit extended by commercial banks?a) RBIb) IDBIc) EXIM BANKd) FEDAI

19. Under the existing FEMA Regulations and Wire transfer guidelines for passing credit to NRE accounts through RTGS/NEFT/NECS/ECS _______________ bank has the responsibility to ensure that the funds are under the eligible credit to the NRE account.a) Bank holding account of the customerc) Originating/sponsor Bankb) Responding Bankd) Intermediary Bank


20. What is the minimum amount for which a Vishwa Yatra Foreign Travel Card can be issued in USD?a) 500b) 1000c) 5000d) 10000

21. What is the minimum amount for which FCNB deposits can be issued in USD,GBP or EUR ?a) 500b) 100c) 1500d) 1000

22. FCNR(B) deposit accounts are opened as.a) SB,CA,TDR & STDRsb) Only SBc) TDRs & STDRsd) Non of the above

23. Nostro account meansa) Your account with usb) Their account with youc) Our account with youd) Your account with them

24. PCFC can continue up to a maximum period of a) 90 daysb) 30 daysc) 360 daysd) 180 days

25. Under a “TOM Value” transaction, the rate is agreed today but the settlement is to be done on:a) Next working dayb) Same dayc) 3 Working days after the date of deald) 2 working days after the date of deal

26. A Bill of Lading is a) Title to the goodsc) Evidence of a contract of carriageb) A receipt for the goodsd) All of the above

27. All the exporters have to submit the GR/PP/SDF/SOFTEX forms to authorized dealer in respect of exports of value ____________and above.


a) Rs.25000b) Rs.100,000c) USD 25000d) USD 100,000

28. AD can permit Public Sector Company to remit FOREX as advance payment for import without insisting on a bank guarantee uptoa) USD 15000b) USD 25000c) USD 100000d) Any amount

29. What is the charge per remittance sent through SBI Express US FCNR Rapid Remittance.a) USD 5b) USD 10c) Free of Costd) To be recovered from the Payee account in INR

30. For issue of Foreign Currency Travelers cheques, the rate applied isa) TC selling rateb) TC buying ratec) TT buying rated) TT selling rate

31. In case of export proceeds realization ADs may allow reduction upto % of Invoice value subject to certain conditions.a) 5b) 10c) 100d) 25

32. Which one of the following rate is to be quoted for low-value transactions below Rs.10.00 lacs?a) Forward Rateb) Special Ratec) On-line Rated) Card Rate

33. Which one of the following rate is to be quoted for all high-value transactions of Rs. 10 lacs and above?a) Forward Rateb) Ready Ratec) Card Rated) On-line Rate

34. What is the minimum balance to be maintained for a NRE/NRO account if the account is maintained at a PBB situated at urban/metro center?


a) Rs. 1000b) Rs. 50000c) Rs. 10000d) Rs. 100000

35. Which one of the following is not a Current account transaction?a) Imports payablesb) Exports receivablesc) Dividendd) External Commercial Borrowings

36. What is the minimum balance to be maintained for a NRE/NRO account if the account is maintained at other than PBB branch?a) Rs. 1000b) Rs. 50000c) Rs. 10000d) Rs. 100000

37. Who regulates import/export trade in India?a) Ministry of Commerceb) Ministry of Financec) DGFTd) RBI

38. Processing of export related receipts through Online Payment Gateway Service Providers (OPGSPs) facility is available for export of goods and services of value not exceedinga) USD 10,000b) USD 25,000c) USD 50,000d) USD 1,00,000

39. If a country is having more exports than imports in value terms, it can be said that the country is havinga) Deficit under BOPb) Deficit under BOTc) Surplus under BOTd) Surplus under BOP

40. A swap transaction involvesa) Purchase of Currencyb) Sale of Currencyc) Purchase of currency against sale or forward sale of the currencyd) Simultaneous purchase and sale of one currency against another for different settlement dates.

41. Unspent foreign exchange brought back to India by a resident individual should be surrendered to anAuthorised Person within how many days from the date of return of the


travellera) 90b) 120c) 150d) 180

42. Forfaiting meansa) Export bills discounting without recourse b) Retirement of Import billsc) Crystallisation of billsd) None of the above

43. What is the limit up to which branches may accept payment in cash against the sale of foreign exchange for travel abroad (for private visit or for any other purpose)?a) Below Rs 20000 b) Under Rs.100000c) No Cash transactiond) Below Rs.50000

44. Crystallisation meansa) retirement of an import billb) conversion of FC liability into Rupee liabilityc) conversion of Rupee liability into FC liabilityd) all of the above

45. The process for receiving and activating INB password on registered email for NRI customers has undergone a change. Which of the following instructions are correct in this regard?a) NRI customer will receive his / her INB username as a SMS on registered mobile numberb) An email containing a Key Code and further procedure to be followed will be sent on customer's registered email address. An SMS informing the generation of aforesaid email will also be sent to the customer's registered email addressc) For first 5 days from activation customer will have limited access to INB. Post cooling period the customer will get complete access to the account through INB.d) All of the above

46. Under the Liberalised Remittance Scheme of RBI, Authorised Dealers may freely allow remittances by resident individuals up to which limit per financial year (April-March)for any permitted current or capital account transactions or a combination of both.a) USD 150000b) USD 200000c) USD 2,50,000 d) USD 1,00,000

47. State Bank of India is maintaining account in Japanese Yen with American Express Bank, Tokyo. It is known asa) Vostro account


b) Nostro accountc) Loro accountd) Escrow account

48. Under the Liberalised Remittance Scheme of RBI any resident individual may remit up-to which limit in one financial year as gift to a person residing outside India. Gifting purposes, both the individuals i.e. remitter and recipient (NRI) should be close relatives as defined in the Companies Act 2013a) USD 150000b) USD 200000c) USD 2,50,000d) USD 1,00,000

49. Authorised Dealers can allow upto ___________ for advance remittance for import of goods into India without insisting on foreign bank guarantee.a) USD 500,000b) USD 200,000c) USD 100,000d) USD 50,000

50. EEFC accounts are maintained witha) Foreign Dept.c) Domestic branches of Banksb) Foreign Banksd) All of the above

51. The term "SOFTEX form" relates toa) Software for export transactionsb) Software for handling import transactionsc) Declaration form for software export in non-physical form.d) Declaration form for software imports

52. Which of the following is the purchase of foreign currency on one market for immediate resale on another market (in a different country) to profit from a price discrepancy.a) Cross tradingb) Arbitragec) Forward tradingd) Reverse trading

53. Overdue interest is chargeable on an export bill froma) 31st day after due dateb) 3rd day after the due datec) 181st day after shipmentd) Day after the due date

54. As per LRS, out of the overall foreign exchange (USD 250, 000 per financial year) being sold to a traveller , travellers proceeding to Islamic Republic of Iran, Russian Federation and


other Republics of Commonwealth of Independent States may be released Foreign exchange upto.a) USD 5000c) USD 50000b) USD 10,000d) Full exchange may be released

55. What does BRC stand for?a) Bills Rediscounted Creditb) Bills Restructured Certificatec) Bill Realisation certificated) Bank Realisation Certificate

56. A key aspect of exchanging one currency for another is itsa) Strengthb) Weaknessc) Convertibilityd) Differentiation

57. In forex transactions, a Bill of entry in Indian context isa) evidence of import of goods into India issued by customsb) a form to be filled by importers with RBIc) a form issued by authorised dealer to enable importer to clear the goodsd) a form issued by FEDAI

58. Authorised dealers are normally required to preserve Exchange Control copies of Bills of Entry/ Postal wrappers received from importers, for a period ofa) 6 monthsb) 1 yearc) 18 monthsd) 18 months

59. Loro account meansa) Your account with usb) Their account with youc) Our account with youd) Our account with them

60. Under a CFR contract, the insurance charges are to be borne by :a) Exporterb) Importerc) To be shared between (a)& (b)d) None of the above

61. If the forward rate for a foreign currency is less than the spot rate, the foreign currency is selling at aa) Forward premium


b) Backward discountc) Backward premiumd) Forward discount

62. If a letter of credit is advised by the Bank, it is responsible fora) Financial standing of the issuing bankb) Financial standing of the applicantc) Payment of the LC amountd) Genuineness of the LC

63. What is the purpose of opening Resident Foreign Currency (RFC)account?a) To facilitate resident Indians park their fund in Foreign Currency denominated depositsb) To facilitate NRIs park their fund in Foreign Currency denominated depositsc) To facilitate NRIs, who are returning to India for permanent settlement park their funds in foreign currencyd) None of the above

64. Maximum amount of foreign currency that can be released for travel to Iraq isa) USD 500b) USD 1000c) USD 3000d) USD5000

65. The price at which the trader is willing to buy foreign currency is.a) Offerb) Bidc) Spreadd) Cross rate

66. Crystallisation of import bill is to be done on the ____th day from the date of receipt of bill under LCa) 30b) 20c) 10d) 15

67. For education abroad, ADs can release foreign exchange upto USDa) 50000b) 100000c) 200000d) 250000

68. What is the cap for loan against NRE/FCNRB deposits either to depositors or to third parties?a) Rs. 20 lacsb) Rs.10 lacsc) Rs.1 crore


d) No limit

69. Outright forward transactions involve the exchange of currency beyond three days at a fixed exchange rate, known as thea) Spot rateb) Forward ratec) FX swap rated) Reverse transaction rate

70. What is the period upto which authorised dealers are required to preserve Form A2 along with other related documents?a) 6 monthsb) 12 monthsc) 18 monthsd) 24 months

71. Authorised dealers may accept cash for amounts not exceeding Rs. ________ for sale of foreign exchange for travel abroad.a) Rs. 50,000b) Rs. 100,000c) Rs. 500000d) Rs. 1,50,000

72. INCOTERMS stands fora) Commercial Certification termsb) International Companies Termsc) International Commercial Termsd) None of the above

73. Formulation of Foreign Trade Policy is done bya) Ministry of Commercec) Ministry of Financeb) DGFTd) RBI

74. When forward rates are at a discount, they are more advantageous to thea) Importerb) Exporterc) both a & bd) none of the above

75. Under option contracts, currency option gives buyer the _____ a specific quantity of currency at an agreed rate on before a particular date.a) Right to buy or saleb) both a & cc) Obligation to buy or saled) None of the above


76. The term beneficiary in a letter of credit refers toa) Importer-buyerb) The bank which negotiates the billc) Exporter -sellerd) None of the above

77. Forward rate means a) Rate agreed today for a future dateb) Rate contracted on a future datec) Tom Rated) All of the above

78. Who gives AD licence ?a) RBIb) FDc) Corporate Centred) None of these

79. A Eurodollar isa) A dollar draft issued by the Bank for International Settlements (BIS) in Switzerland.b) A dollar bank deposit in a bank outside of the United Statesc) Another name for a Special Drawing Right (SDR)d) A currency issued by the World Bank and pegged to the US dollar

80. IEC stands fora) Importer-Exporter Code Numberc) Indian Export Controlb) Importer Exporter Control Numberd) None of these

81. IEC number is alloted bya) RBIb) Ministry of Financec) DGFTd) Ministry of Commerce

82. FEMA stands fora) Foreign Exchange Management Actb) Foreign Excess Monitoring Actc) Funded Exchange Management Actd) None of the above

83. What is the amount of Foreign Exchange Authorised dealers are permitted to remit on behalf of a resident indian for medical expenses abroad?a) USD 75000b) USD 100000c) USD 125000


d) USD 250000

84. SDF stands fora) Self Declaration Formb) Statutory Declaration Formc) Salary Declaration formd) Statutory Drawing Facility

85. Nostro Account meansa) Your account with usb) Their account with youc) Our account with youd) NRI account

86. UCPDC stands for a) Uniform Customs and Practices for Debits and Creditsb) Uniform Customs and Practice for Documentary Creditsc) Unified Credit Procedure for Developed Countriesd) United Credit Programme for Developed Countries

87. Which version of UCPDC is presently in force?a) UCPDC 6000b) UCPDC 500c) UCPDC 5000d) UCPDC 600

88. A forward currency transactiona) Is always at a premium over the spot rateb) Calls for exchange in the future of currencies at an agreed rate of exchangec) Means that delivery and payment must be made within one business day (USA/Canada) or two business days after the transaction date.d) Sets the future date when delivery of a currency must be made at an unknown spot exchange rate

89. EPC stands fora) Export Product Councilb) Export Product Creditc) Export Packing Creditd) Export Promotion Credit

90. PCFC stands fora) Pre-Shipment Credit in Foreign Currencyb) Post Shipment Control of Foreign Currencyc) Post-shipment Credit in Foreign Currencyd) None of the above


91. GLS stands fora) Global Language Systemb) Global Link Systemc) Global Link Serviced) Global Lock section

92. EBRS stands fora) Export Bill Return Systemb) Export Bill Return Schemec) Export Bill Rediscounting Schemed) Export Bill Realisation Scheme

93. Balances in NRE Deposit accounts are repatriable uptoa) Only Principal amountb) Both Principal and Interestc) Only Interest amountd) Not repatriable

94. NRO account holder may remit/repatriate an amount up to per financial year out of the balance held in his Non Resident (Ordinary) Rupees Account.a) USD 1,00,000b) USD 1,000,000c) Rs.1,00,000d) Rs.10,00,000

95. If the Indian subsidiary of a US firm has net exposed assets of Rs 9,000,000 and the Indian rupee drops in value from Rs 45.00/$ to Rs 50.00/$, the US firm has a translationa) Loss of $25,000b) Loss of $20,000c) Gain of $25,000d) Gain of $20,000

96. RBI has permitted Banks to allow foreign Tourists, who are on short visit, to open NRO accounts in India. These accounts are allowed to be operated for a maximum period of _________ monthsa) 3 monthsb) 6 monthsc) 9 monthsd) 12 months

97. If purchasing power parity were to hold even in the short run, thena) Real exchange rates should tend to decrease over time.b) Real exchange rates should tend to increase over time.c) Quoted nominal exchange rates should be stable over time.d) Real exchange rates should be stable over time.

98. Which category of Authorized branches can maintain Nostro a/cs ?


a) A categoryb) B categoryc) C categoryd) All of the above

99. B category branches can handlea) trade related transactionsc) NRI accountsb) service related transactionsd) All of the above

100. Under FCNRB loan Scheme, loans are extended toa) NRI customersb) Persons having FCNRB depositsc) Corporate requiring Foreign currency/ Rupee fundingd) All of these

101. As per recent notification of the Reserve Bank of India (RBI) under FEMA 5 ( R) dated 01st April 2016, NRO account held jointly with resident Indians should be on 'Former or Survivor' basis only. Further RBI has clarified that NRO accounts opened earlier in 'Either or Survivor' mode needs to be mandatorily converted toa) Payable to Formerb) Former or Survivorc) Payable jointlyd) No change required

102. The cover operation of all forex transactions are done bya) Corporate Centreb) Foreign Department, Kolkatac) Treasury management Group, Mumbaid) None of these above

103. Which of the following has been added in the UCPDC 600, under Force Majeure clause (Article 36).a) Warb) Nuclear explosionc) Acts of Terrorismd) Robbery

104. Which of the following is not an export declaration form?a) GR/SDFb) VP/ CODc) BEFd) SOFTEX

105. For professional like doctors, chartered accountants providing services abroad, how much of inward remittances can be credited to EEFC account?


a) 100%b) 75%c) 50%d) Can't be credited

106. UCP 600 is applicable w.e.f.a) 01.07.2007b) 01.01.2007c) 01.07.2005d) 01.01.2005

107. FEDAI stands fora) Foreign Exchange Dealer's Act of Indiab) Foreign Exchange Dealers' Association of Indiac) Foreign Exchange DevelopmentAuthority of Indiad) None of the above

108. Foreign Nationals on their temporary visits to India are allowed to open the following accountsa) NRO SB & CAb) NRE SB & CAc) Any NRO accountsd) Not allowed

109. From 1st April 2012 onwards R return is compiled bya) Global Market Unit, Kolkatab) Treasury Management Groupc) All A and B category forex handling branchesd) Not submitted at all

110. Customers with which of the resident status are allowed to open RFC accounts?a) RNOR (resident but not ordinarily resident)b) ROR (resident and ordinarily resident)c) RI (resident Indian)d) All of the above

111. Which of the following is a pre shipment export credit , which is disbursed in indian rupees?a) PCFCb) EBRc) EPCd) EBD

112. Which of the following is a post shipment export credit , which is disbursed in indian rupees?a) PCFCb) EBR


c) EPCd) Trade credit

113. Which Of The Following Statement Is Correct?a) Banks Only Deal With Documents And Goods.b) An Irrevocable Confirmed Credit Only Constitutes A Definite Undertaking Of The Issuing Bank Provided Stipulated Documents Are Presented And The Terms And Conditions Of The Credit Are Complied.c) An Irrevocable Unconfirmed Credit Constitutes A Definite Undertaking Of The Issuing Bank Provided Stipulated Documents Are Presented And The Terms And Conditions Of The Credit Are Complied.d) Bank's Are Only Concerned If Contract Number Is Mentioned In The Credit.

114. As per extant instruction of the Bank, operations in the inoperative accounts is to be permitted after due diligence as per risk category of the customer. Accordingly now, NRI customer has to submit following for operationalizing their 'in-operative' NRI accounta) Re-KYC letter along with identification documents.b) Mandate to the branch for carrying out Rs. 1/- debit & credit in the customer's account.c) Recent passport size photographd) Both a & b.

115. Under Liberalized Remittance Scheme (LRS) in a Financial Year a minor can remit up toa) USD 50,00b) USD 1,00,000c) USD 250,000d) Minor cannot remit

116. For violation of FEMA, prosecution is done bya) RBIb) DGFTc) FEDAId) Enforcement Directorate

117. Recently Bank has allowed branches to issue Bank Guarantees without transferability/assignment clause, where _________ is the beneficiary.a) MNCb) Reputed corporatesc) PSUs/ Government Undertakings/ Government Departmentsd) None of the above

118. In case of invocation of the Bank Guarantee by the beneficiary, the Bank shoulda) Bank should refer it to the customer and on acceptance should pay the beneficiaryb) Bank should refer to the customer only if sufficient balance is not available in the account of the applicantc) Conduct an enquiry on the fact and figures about the default by the applicantd) Pay to the Beneficiary immediately on receipt of written demand without waiting for any response or confirmation from the applicant


119.Which of the following statements is true in respect of definition of NRI?a) Period of stay in India in the previous year should not exceed 182 days as per IT Rulesb) Period of stay in India in the previous FY should not exceed 182 days as per FEMAc) Period of stay abroad in the previous AY should not exceed 181 days as per IT Rulesd) None of the above

120. Irrevocable Confirm Credit Cannot Be Cancelled Or Amended Without The Agreement Ofa) Beneficiary, Confirming Bank, Issuing Bankb) Applicant, Beneficiary, Issuing Bankc) Beneficiary, Confirming Bank, Applicantd) Advising Bank, Beneficiary, Issuing Bank

121. Which of the following accounts of NRIs is taxable in India?a) NREb) NROc) FCNR(B)d) RFC

122. Foreign Currency loans extended/arranged by banks to importers for retirement of Import Bills, upto repayment period 1year in case of raw materials and 3 years in case of capital goods is calleda) FCNR Loansb) Trade creditsc) Commercial Borrowingsd) None of these

123. External Commercial Borrowings (ECB) means :a) Borrowings by Govt. from IMFb) Borrowings by Govt. from World Bankc) Borrowings by Corporate from MNCsd) Borrowings by Corporate & FIs from International market.

124. Which of the following is not an objective of Nostro reconciliation?a) Improving FD's profitabilityb) Detecting and recovering double payments or double debitsc) Recovering charges levied by correspondentsd) Minimizing provision against unmatched debits as per RBI directives

125. In order to ensure uniformity and transparency in interest rates on NRE / FCNR (B) deposit ____________ publishes the LIBOR / SWAP rates to be used by banks in arriving at the interest rates on NRI deposits.a) RBIb) EXIM BANKc) FEDAId) Global Market Unit


126. FERA has been replaced by FEMA wefa) 01.01.2000b) 01.04.2000c) 01.06.2000d) 01.07.2000

127. If FCNR(B) A/c is closed before a minimum period of 1 yeara) Interest will be paid for period of run at domestic rate onlyb) Interest will be paid for the actual period run at contractual rate without penaltyc) Interest will be paid for the actual period the deposit has run at contractual rate with penaltyd) No interest is payable

128. Non Resident Ordinary (NRO) and NRE accounts are maintained in which currency?a) INRc) USD, GBP, EUROb) USD onlyd) All foreign currencies

129. Which of the following documents MUST be signed?a) Packing listb) Certificate of originc) Commercial invoiced) Weight specification

130. Indian students studying abroad are treated as NRIs. What are the forex remittance facilities available to them?a) USD 250000 per academic year from close relatives in Indiab) USD 10,00,000 per financial year from their NRO balancec) Both a & bd) Either a or b

131. Exchange risk in respect of FCNR (B) accounts is now borne by a) RBIb) Concerned Bankc) Central Govtd) None

132. Investment in which of the following's are prohibited for all classes of persons resident outside India?a) Investment in Immovable propertiesb) Portfolio Investmentc) Investment in Agl. Properties/ plantation Crop/ farm housed) Investment by way of FDI /FII

133. A documentary credit calls for a draft at 95 days bill of lading date drawn on the confirming bank. The documentary credit is available bya) Refinance


b) Acceptancec) Sight paymentd) Deferred payment

134. As per Bank's ATM policy, Debit cards issued to NRI customers are only activated through SBG ATM in India i.e. initial transaction needs to be done at SBG ATM before it can be used anywhere else. However, it is posing a major problems for NRI customers, as they have to activate their Debit card in India In order to mitigate hardship faced by NRI customers, Bank has enabled to activate their debit cards through which of the following.a) Foreign offices of the Bankb) Retail INB facilityc) Branch INB interfaced) POS terminals of SBI

135. For conducting Forex business our branches are categorized into how many categories categories.a) 2b) 3c) 4d) 5

136. Which of the followings are correct about FC-SEZ Account?a) It is a CurrentAccountb) It is identical to EEFC schemec) It can be opened in USD, GBP, EURO and JPYd) All of the above

137. An exporter who has not been able to realize the outstanding export dues despite best efforts, may either self-write off or approach the AD Category - I banks, who had handled the relevant shipping documents, with appropriate supporting documentary evidence. In this regard, The limits prescribed for write-offs of unrealized export bills by authorized dealers, i.e Banks is:a)05% of the total export proceeds realized by the unit during the previous calendar yearb)10% of the total export proceeds realized by the unit during the previous calendar yearc)15% of the total export proceeds realized by the unit during the previous calendar yeard)20% of the total export proceeds realized by the unit during the previous calendar year

138. Which category of Forex branches are authorized to undertake and report sale and purchase Forex transactions?a) A & B onlyb) A, B & C1c) A, B & C2d) A, B, C1 &C2

139. For remittance arising out of handling Import Bills, which rate will be used?a) TT Selling


b) Bill sellingc) TC sellingd) CN Selling

140. In case of Inward remittance,when our NOSTRO a/c has already been credited, which rate will be applicable?a) TT Buyingb) Bill Buyingc) DD Buyingd) TC Buying

141. For negotiation of export bills, which rate will be applicable?a) TT Buyingb) Bill Buyingc) DD Buyingd) TC Buying

142. For purchase of DDs drawn on us, which rate will be applicable?a) TT Buyingb) Bill Buyingc) DD Buyingd) TC Buying

143. As per recent instructions issued by FEDAI, if the date of expiary of an option contract fallson "suddenly declared holiday", the new expiry date should be :a) Pre-poned to the previous working day.b) Should be fixed as per understanding of the parties involvedc) Should be post-poned to the next working dayd) Should be referred to FEDAI

144. AD Category-I banks are permitted to issue guarantee for amount not exceeding _____or its equivalent in favour of a non-resident service provider, on behalf of a resident customer who is a service importer.a) USD 100,000b) USD 2,00,000c) USD 300,000d) USD 5,00,000

145. As per instructions issued by RBI, remittances against imports should be completed not later than which interval from the date of shipment.a) 6 monthsb) 1 yearc) 2 yearsd) 3 months

146. Authorised dealers can allow advance remittance/payments upto _____ for import of services, without insisting for Bank Guarantee.


a) USD 100,000b) USD 2,00,000c) USD 300,000d) USD 5,00,000

147. With liberalization of Capital Account transactions resident Indians are prohibited to invest in which of the following without prior approval of RBIa) Investment in Equity/ Debt instrumentsb) Investment in a foreign entity engaged in a real estate businessc) Portfolio Investmentd) Investment in Mutual Funds

148. A transferable credit can do which of the followinga) Protect the applicant from the risks of loss and error.b) Allow the second beneficiary to obtain payment for complying documents.c) Restrict the right of the second beneficiary to claim payment directly from the nominated bank.d) Permit the supplier to provide the intermediary trader with the security of a documentary credit.

149. What is the time limit for realization of exports proceeds by status holders?a) 6 months from shipmentb) 9 month from shipmentc) No time limitd)12 month from shipment

150. Packing credit advance is generally allowed on the strength ofa) Securities offered by the borrowerb) LC/Confirmed Orderc) Borrowers average exports for the past three yearsd) None of the above

151. Global Market Unit, Kolkata has recently launched which of the following as a knowledge sharing portal. This is designed to provide an internal platform to the staff of SBI and its Associate Banks to exchange information on Forex related matters.a) fx forumb) mfx forumc) e fx forumd) None of the above

152. Call option isa) Right to Sellb) Right to Buyc) Right to buy without obligationd) No obligation to Sell

153. The exporter has to give an undertaking to realize the proceeds within what interval from


the date of shipment.a) 3 monthsb) 6 monthsc) 9 monthsd) 1 year

154. In which Form, exporter has to declare the exports?a) A1b) A2c) GRd) A3

155. The exporters are exempted from submitting declaration in GR form if the value of exports do not exceed USD ______ or its equivalent.a) 10000b) 15000c) 20000d) 25000

156. In accordance with UCP 600, which of the following alterations can a first beneficiary request a transferring bank to make under a transferable documentary credit?a) Extend the expiry dateb) Decrease the unit pricec) Decrease insurance coverd) Extend the period for shipment

157. The exporter has to submit the duplicate copy of GR along with necessary documents to ADs within how many days from the date of shipment.a) 7b) 14c) 21d) 28

158. If the export bill is not realized within 30 days from the expiry of transit period or 30 days from the expiry of due date, it should be crystallized at which rate.a) Bill buyingb) TT sellingc) Bill buyingd) TC selling

159. What are the rights and obligation of the confirming Bank as per UCPDC?a) Confirming bank is irrevocably bound to honour or negotiate as of the time it adds its confirmation to the creditb) A confirming bank undertakes to reimburse another nominated bank that has honoured or negotiated a complying presentation and forwarded the documents to the confirming bankc) On receipt of request from the issuing bank to confirm a credit if the Bank is not prepared to do so, it must inform the issuing bank without delay and may advise the credit without


confirmationd) All of the above.

160. For AD category - I, banks are required to furnish to RBI on half yearly basis details of unrealised overdue export bills giving details of all export bills outstanding. Name of the return to be submitted isa) GRb) XOSc) SOFTEXd) PP

161. A German bank has added its confirmation to a documentary credit issued by a Turkish bank. Which of the following risks is NOT borne by the confirming bank?a) Fraud by the beneficiaryb) Insolvency of the issuing bankc) Refusal of the issuing bank to pay against complying documentsd) Government restrictions on funds transfer from the issuing bank

162. Which of the following transactions is not permitted to a Power of Attorney holder of an NRI ?.a) Making local paymentsb) Making remittances to NRI depositorc) Making gifts to third pariesd) Making investment on behalf of NRI

163. EEFC Account is opened to facilitatea) Exporters in 100% EOUs can credit 100% forex earnings to EEFC accountb) To facilitate exporters to accumulate forein currency from the exports proceeds, which can be utilised in case of any obligation towards imports c)This account can be opened in Current Account onlyd) All of the above.

164. In accordance with UCP 600, which of the following terms may NOT be altered on a transferred documentary credit? Thea) Amountb) Required documentsc) Period for presentationd) Amount of insurance cover

165. Documents under L.C should be scrutinised as per terms of the L.C and any discrepancies are to be reported to the negotiating Bank within a time not exceeding.a) 7 banking daysb) 15 banking daysc) 5 banking daysd) 30 days

166. Up to what limit resident individuals/ firms/companies can book forward contracts


against their anticipated inward or outward remittances on the basis of simple declaration?a) USD 100000b) USD 1,50,000c) USD2,00,000 d) USD 2,50,000

167. Pre-shipment credit in Foreign Currency (PCFC) is linked to which interest rate.a) SBARb) MIBORc) LIBORd) BR

168. PCFC is available in which of the following ways.a) TLb) CCc) Both a & bd) OD

169. In case of PCFC, maximum period of credit allowed is how many days from the date of disbursement.a) 60b) 90c) 180d) 360

170. Statement of PCFC loans disbursed will be sent to FD, Kolkata at which interval.a) Fortnightlyb) Monthlyc) Qrlyd) Half Yearly

171. Red clause Letter of credit refers to special clause authorizing fora) Transferb) Security of another LCc) Renewal without amendmentd) Advance to beneficiary before shipment

172. In a back to back letter of credit:a) Two letter of credits are issued by the same branch of the Bankb) Two letter of credits are issued by different branches of the same bank, located in different countries.c) A Letter of credit is opened with the security of another letter of credit by two branches of different banksd) None of the above

173. Unless specifically mentioned, a letter of credit isa) Revocable


b) Issuing Bank can recall the L.C.c) Irrevocabled) Transferable

174. Forward contract can be booked for which kind of transactions.a) Purchaseb) Salec) Both a & bd) None of the above

175. An issuer of a standby credit subject to ISP98 is responsible fora) Accuracy of any document.b) Act of omission by the nominated bank.c) Observance of law as stated in the standby.d) Performance of any underlying transactions.

176. If the rupee equivalent of forward contract is exceeding Rs 10 lacs, rates will be obtained froma) Respective LHOb) FD, Kolkatac) Respective ZOd)Treasury Dealing Room at Mumbai

177. A forward sale contract will be cancelled at which rate.a) TT Buyingb) TT Sellingc) Bill Buyingd) Bill Selling

178. A Forward Purchase contract will be cancelled at which rate.a) TT Buyingb) TT sellingc) Bill Buyingd) Bill Selling

179. The balance along with interest in NRE accounts can be repatriated with permission of which of the following authority.a) RBIb) Commerce Ministryc) MOFd) No permission required

180. Operation of NRE account by third party can be permitted by ADs a) Under a Power of Attorneyb) Letter of Authority in the prescribed formatc) Either a or bd) None of the above


181. ADs can grant loan to NRE for the following purpose.a) Investment other than Agr plantation and Real Estateb) Direct investment on non-repatriation basisc) Acquisition of house/flats for their residential uses subject to FEMAd) All of the above

182. Which agency administers the economic sanctions imposed by the US Govt. to different entities/ countries/organisations?a) CIAb) Federal reservec) USOFACd) Central Bank of USA

183. What is the full form of USOFAC?a) United States Office of Federal Assets Controlb) United States Office of Foreign Assets Controlc) United States Office of Foreign Assets Claimd) None of the above

184. Forex Operations of which financial institutions are affected by the OFAC regulations?a) Financial Institutions operating within USAb) Financial Institutions operating outside USAc) All financial institutions engaged in US Dollar denominated transactions, irrespective of their geographical locationsd) All Financial institutions having trade relations with USA

185. Resident individuals can remit funds overseas under Liberalised Remittance Scheme (LRS), through a functionality in CBS named:a) LRS fxb) Mercury fxc) GLS fxd) fxout

186. FCNR(B) can be opened for a minimum period of ___ and maximum period ___ years.a) 1 year, 5 yearsb) 1 year, 3 yearsc) 6 months, 3 yearsd) None of the above

187. As per risk perception and country risk management guidelines of the bank,while dealing with any forex transactions, countries are divided into how many risk categories.a) 3b) 5c) 7d) 9


188. How many A category branches (SBI) are there in the country as per recent Forex Categorisation done by the Bank ?a) 5b) 6c) 7d) 8

189. What is the minimum amount of Fixed deposit in USD under RFC account.a) 1000b) 2000c) 3000d) 5000

190. The information pertaining to inflows and outflows of forex is submitted by ADs to RBI through which of the following.a) XOS statementb) R Returnc) BEF statementd) Bill of Entry

191. Balance of Payments is calculated by RBI based ona) R-Returnsb) BEFc) XOSd) None of the above

192. If the CIF or CIP value cannot be determined from the documents, a nominated bank will accept an insurance document, which covers1. 110% of the gross amount of the invoice2. 100% of the gross amount of the invoice3. 110% of the documentary credit amount4. 110% of the amount for which payment, acceptance or negotiation is requested under the credita) 1 and 3 only.b) 2 and 4 only.c) 1, 2 and 4 only.d) 1, 3 and 4 only

193. The eligible limit of Forward contract to be booked on past performance basis is computed as the average of the previous three financial years' import/export turnover or the previous year's actual import/export turnover,whichever is higher. Bank has recently revised the limit for resident importers from________ to _________.a) 50% to 100%b) 25% to 50%c) 50 % to 75%d) None of the above


194. Forward rate of a pair of currencies is dependent ona) Interest rate different of the pair of currenciesb) Demand and supply of the two currenciesc) Economic policies of the two countriesd) Independent of all

195. Name of the software used by GMU (K) and forex handling branches for reconciliation of nostro accountsa) Smart Stream Reconciliation (SSR)b) Mercury FXc) EXIM Billsd) Murex

196. Which rate is used by banks for converting foreign currency denominated Assets and Liabilities into rupeesa) Spot rateb) RALOO ratec) Online rated) TT buying rate

197. No interest is paid in case of Premature closure before completion of one year in which type of term deposits.a) NREb) FCNR (B)c) RFCd) All of the above

198. RBI recently allowed ADs to open NRE and FCNR(B) accounts for NRIs jointly with resident Indians on the following basis.a) Either or Survivorb) Former or Survivorc) Jointlyd) None of the above

199. Forward contracts are usually permitted to be booked for a maximum period ofa) 3 monthsb) 6 monthsc) 9 monthsd) 12 months

200. Which of the following instructions are correct regarding crystallization of overdue export bills.a) Bank has automated the process of crystallization of Export Bills on the due date,eliminating the manual interventions by Branches.b) In case, the Branch proposes to extend the due date of the Export Bill at the request of the customer and with the approval of the appropriate authority, such extensions,hence forth, should be done in Eximbills before the time specified for crystallization.


c) Any failed transactions resulting in non-crystallization of unpaid Export Bills will have to be manually crystallized by the Branch on the following day, by reviewing the reports available to the branch.d) All of the above

201. SDNs, SDNTs,Embargoed nations etc are terms related to the followinga) OFACb) Preventin of Money laundering Actc) Patriot Actd) KYC rules

202. Which of the following INCO terms 2010 envisages maximum cost and risk for the exporter?a) Delivered Duty Paid (DDP)b) Cost insurance and Freightc) Delivered at Placed) Free on Board (FOB)

203. Which of the following INCO terms 2010 envisages minimum cost and risk for the exporter ?a) Free Alongside Ship (FAS)b) Ex works(EXW)c) Cost and Freight (CFR)d) Free Carrier (FCA)

204. Which of the following is a derivative instrument?a) Forwardsb) Futuresc) Swapsd) All of the above

205. Which of the derivative products are sold over the counter at ourA & B category branches?a) Optionsb) Futuresc) Swapsd) Forwards

206. Margin Matrix is used for assessment of margin on forex transactions. Margin matrix is based on which of the following parameter.a) Credit Ratingb) Wallet Sharec) Size of transactiond) All of the above

207. The eligibility criteria for opening Diamond Dollar Accounts under the scheme of Govt of India is


a) Firms and companies dealing in purchase/sale of rough or cut and polished diamonds / diamond studded jewellery.b) Track record of at least two years in import or export of diamonds.c) Having an average annual turnover of Rs. 3 crores or above during the preceding three licensing years (licensing year is from April to March)d) All of the above

208. Which of the following international trade transaction does not require prior approval from the Reserve Bank?a) Acquisition of Immovable Property abroad for Overseas Officesb) Counter Trade Agreementc) Export of Goods on Lease, Hire, etcd) Participation in Trade Fairs Abroad

209. Is URC 522 automatically applicable to all collections?a) No, unless stated in collection instruction. b) Yes, it automatically covers.c) It varies from bank to bankd) None of these

210. Which of the following is true about High Sea Sale:a) High sea sale is a sale made, of a consignment, while the goods are still in sea only.b) It is a type of sale to save statutory taxes for the parties.c) High Sea sales (HSS)is a sale carried out by the carrier document consignee to another buyer while the goods are yet on high seas or after their dispatch from the port/ airport of origin and before their arrival at the port / airport of destination.d) All of the above.

211. The individual limits of ECB that can be raised by eligible entities under the automatic route per financial year for companies in software development sector isa) USD 100 millionb) USD 200 millionc) USD 150 milliond) USD 250 million

212. All-in-cost ceiling for External Commercial Borrowing (ECB) for average maturity period of three to five years isa) 6 Month LIBOR + 200 bpsb) 6 Month LIBOR + 350 bpsc) 6 Month LIBOR + 300 bpsd) 6 Month LIBOR + 500 bps

213. The individual limits of ECB that can be raised by eligible entities under the automatic route per financial year for companies engaged in micro finance activities isa) USD 50 millionb) USD 150 millionc) USD 100 million


d) USD 250 million

214. Which of the following is true about Authorised Money Changers (AMC) ?a) AMC are entities, authorised by the Reserve Bank under Section 10 of the Foreign Ex-change Management Act, 1999.b) An AMC is a Full Fledged Money Changer (FFMC).c) Minimum Net Owned Fund for single branch is Rs.25 lakhs and for multiple branches is Rs.50 lakhs.d) All of the above.

215. Which of the following is true about acquisition of Immovable property by NRI/PIO ? a) NRIs can acquire immovable property other than agri land/ plantation property/ farm house.b) Payment through Funds received in India through normal banking channels by way of inward remittance from any place outside India or by debit to his NRE/FCNRB/NRO account.c) A PIO can acquire by way of purchase any immovable property (other than agricultural land/ plantation property / farm house) in India. d) All of the above.

216. Which of the following is true about contraventions under FEMA 1999 ?a) Reserve Bank has been empowered to compound the contraventions of all the Sections of FEMA, 1999, except clause (a) of Section 3 of the Act.b) Directorate of Enforcement would exercise powers of compounding under clause (a) of Section 3 of FEMA, 1999 (dealing essentially with Hawala transactions).c) RBI can impose penalty up to thrice the sum involved in such contravention where the amount is quantifiable or up to Rupees Two lakh, where the amount is not quantifiable and where the contravention is a continuing one, further penalty which may extend to Rupees Five thousand for every day after the first day during which the contravention continues.d) All of the above

217. Which of the following is true about Import trade into India ?a) Import trade is regulated by the Directorate General of Foreign Trade (DGFT)under the Ministry of Commerce & Industry, Department of Commerce, Government of India.b) Authorised Dealer Category - I (AD Category - I)banks should ensure that the imports into India are in conformity with the Foreign Trade Policy in force and Foreign Exchange Management (CurrentAccount Transactions) Rules, 2000c) AD Category - I banks should follow normal banking procedures and adhere to the provi-sions of Uniform Customs and Practices for Documentary Credits (UCPDC), etc. while open-ing letters of credit for import into India on behalf of their constituents.d) All of the above.

218. Application on Form A1 is required to be made by persons, firms and companies for making payments above ________________ for imports into India.a) USD 1000b) USD 5000c) USD 10000d) USD 25000


219. Which of the following is true about advnce remittance for imports ?a) AD I banks can allow advance remittance upto USD200,000 for import of goods without any bank guarantee.b) For advance remittance above USD 100,000, without bank guarantee, PSUs/ Govt Depts need to obtain waiver from Ministry of Finace Ministry.c) In cases where the importer (other than a Public Sector Company or a Depart-ment/Undertaking of the Government of India/State Government/s) is unable to obtain bank guarantee from overseas suppliers and the AD Category - I bank is satisfied about the track record and bonafides of the importer, the requirement of the bank guarantee/ standby Letter of Credit may not be insisted upon for advance remittances up to USD 5,000,000 (US Dollar five million). d) All of the above

220. Which of the following is true regarding Receipt of import documents by the importer di-rectly from overseas suppliers and payment of the same without approval?a) Where the value of import bill does not exceed USD 300,000b) Import bills received by wholly-owned Indian subsidiaries of foreign companies from their principals.c) Import bills received by Status Holder Exporters as defined in the Foreign Trade Policy, 100% Export Oriented Units / Units in Special Economic Zones, Public Sector Undertakings and Limited Companies.d) All of the above.

221. What is the maximum amount that Authorised Dealers can allow under the Liberalised Remittance scheme for Resident Individuals ?a) USD 1,00,000b) USD 1,25,000c) USD 2,00,000d) USD 2,50,000

222. Term deposits in which of the following category of deposits do not earn interest if run for less than one year ? a) NRE depositsb) FCNR deposits c) RFC depositsd) All of the above

223. Where imports are made in non-physical form, i.e., software or data through internet /data com channels and drawings and designs through e-mail / fax, bank should obtain which of the following as the evidence of importa) Bill of entryb) Declaration of the CEO of the co.c) Certificate from a Chartered Accountant that the software / data / drawing/ design as been received by the importer, may be obtained.d) Softex Form

224. Which of the following is true about Exchange Earners Foreign Currency A/c (EEFC)


a) This account shall be maintained only in the form of non-interest bearing current account. No credit facilities, either fund-based or non-fund based, shall be permitted against the security of balances held in EEFC accounts by theAD Category - I banks.b) An exchange earner is eligible to retain 100% of the balances in EEFC accounts subject to the condition that the sum total of the accruals in the accounts during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilisation of the balances for the approved purposes or forward commitments.c) The facility of EEFC scheme is intended to enable exchange earners to save on conver-sion/transaction costs while undertaking forex transactions in future.d) All of the above.

225. Which of the under-noted statement(s) are true pertaining to FOB contract, in case of import to Indiaa) The cost and freight will be borne by the exporterb) Insurance and freight will be borne by the importerc) Cost ,insurance and freight will be borne by the exporterd) Only freight will be borne by the importer.

226. Maximum quantum of foreign currency that can be brought by a person visiting India without declaration to custom is :a) USD 2500b) USD 5000c) USD 7500d) USD 10000

227. Miscellaneous remittances are permitted up to _________ without documentation formalities , on simplified declaration basisa) $ 25000 for current account transactionb) US $ 25000 irrespective of any current or capital accountc) US $ 5000d) All of these

228. Release/ Drawal of foreign currency is prohibited for which of the following transactions:a) For a travel to Nepal and/or Bhutanb) Payment obligation for a transaction with a person resident in Nepal or Bhutanc) Remittance out of lottery winningsd) All of the above

229. The usance period of Letters of Credit opened for import of gold in any form including jewellery made of gold/precious metals or/and studded with diamonds/semi precious/precious stones should not exceed how many days from the date of shipment and only on 100 per cent cash margin basis.a) 60 daysb) 90 daysc) 120 daysd) 180 days


STAFF MATTERS AND ADVANCES Compiled by- Sh. Rakesh Jain CM -Training

1. New Pension Scheme (NPS) is also called asa) Defined contribution Pension Scheme (DCPS) b) Voluntary Pension Scheme.c) Both of aboved) None of above

2. Gratuity amount is calculated asa) 15 days for each completed yearb) Minimum 5 years of servicec) 26 working days are being considered in a month.d) All of above

3. Payment of gratuity Act is made ina) 1970b) 1974c) 1972d) 1962

4. City compensatory allowance rates area) 4 to 5% of basicsb) 5 to 6% of basicsc) 3 to 4 % of basicsd) None of these

5. What is PQA in your salarya) Personal qualification allowanceb) Professional qualification allowancec) Postgraduate qualification allowanced) None of these

6. Deputation allowance for officers isa) 7.75% of pay with a maximum of Rs. 4000/- p.m. If serve out of bank.b) 4% of pay with a maximum of Rs.2000/- p.m. If serve on same place or training establishment.c) Both of aboved) None of above

7. Officiating allowance is payable when a officer officiate in post in higher grade/scale for a continuous period of not less thana) 7 days at a time or an aggregate of 7 days during a calendar monthb) 5 days at a time or an aggregate of 5 days during a calender monthc) None of aboved) All of above

8. What is the rate of officiating allowance


a) 5 % of basic per monthb) 6 % of basic per monthc) 7% of basic per monthd) None of above

9. House Rent Recovery rate isa) @ 0.75 % of the first stage of the scale of payb) @ 0.50 % of the first stage of the scale of payc) @ 1.00% of the first stage of the scale of payd) None of above

10. Furniture rent recovery shall bea) @ 0.15% of the first stage of the scale of payb) @ 0.25% of the first stage of the scale of payc) @ 0.40% of the first stage of the scale of payd) None of above

11. In one instance,maximum number of Casual leave can be utiliseda) 5 daysb) 3 daysc) 4 daysd) 6 days

12. Casual leave not availed of in a particular year may be a) May be availed in following three yearsb) May be availed in following one yearc) May be availed in following four yearsd) Will lapse and can't avail it

13. Sick leave can be accumulated maximum uptoa) 300 daysb) 510 daysc) 540 daysd) None of above

14. Sabbatical Leave can be availed by woman employees during her whole career uptoa) 2 yearsb) 5 yearsc) 3 yearsd) None of above

15. Can a male officer apply for sabbatical leavea) Nob) Yes, if he have some valid reasonc) Yes, If he is single and require for taking care of children and/or aged parentsd) Yes for any purpose


16. Can men employee get sabbatical leaves twice in a yeara) Yesb) No

17. Total Sabbatical leave allowed to a men employee in his entire servicea) 2 yearsb) 5 yearsc) 3 yearsd) None of above

18. Minimum period for which sabbatical leave can be applied by a men employeea) 2 monthb) 3 monthc) 1 Yeard) 2 Year

19. Minimum service require to apply for sabbatical leave for a men employeea) 2 Yearsb) 3 Yearsc) 5 years d) No minimum service, he can apply as and when require

20. Travelling by car is allowed to officers in SMGS-IV and above between places not connected by air or rail provided that the distance does not exceeda) 200 kmsb) 300 kmsc)400 kmsd) 500 kms

21. Parents are considered as dependent if their total income isa) Upto Rs. 5000/- per monthb) Upto Rs. 10000/- per monthc) Upto Rs. 20000/- per yeard) None of above

22. Officers in Scale ___ and above will undergo compulsory medical check-up annuallya) IIb) IIIc) IVd) V

23. Cost ceiling for executive health check up for eligible male and female officers area) Rs. 2000/- & Rs.3000/-b) Rs. 4000/- & Rs.4200/-c) Rs. 3000/- & Rs.3500/-d) Not specified, it's depend on centres


24. Bank Guards name is entered in Gun license asa) Owner b) Holderc) Retainer d) Only BMs name entered

25. Yearly entry relating to staff welfare fund is passed ona) 31st January b) On any day.c) 28th/29th February d) 31st March

26. Signing powers of JMGS-I/Chief Associate (Customer support & sales) in respect of Draft/IOI isa) Below Rs.150000/- Individually Rs.150000/- and above: Jointly with another official having full signing powers.b) Jointly with another official having full signing powers.c) Unlimited signing powers individually d) None of the above.

27. Passing powers of Senior Associate (Customer Support & Sales) in Cash & Transfers area) Rs.100000/- and Rs.200000/- b) Rs.50000/- and Rs.100000/-c) Rs.200000/- and Rs.400000/- d) None of the above

28. Passing powers of Junior Associate (Customer Support & Sales) with capability level 1 in Cash & Transfers are-a) Rs.50000/- and Rs.100000/- b) Rs.15000/- and Rs.20000/-c) Rs.25000/- and Rs.50000/-d) Rs.20000/- and Rs.25000/-

29. Passing powers of Associate (Customer Support & Sales) in Cash & Transfers are-a) Rs.50000/- and Rs.100000/- b) Rs.35000/- and Rs.70000/- c) Rs.25000/- and Rs.50000/-d) Rs.15000/- and Rs.20000/-


INFORMATION TECHNOLOGY Compiled by- Sh. Tarun Kumar CM -Training

1. Full form of ADS isa. Active directory systemb. Active directory servicesc. Active director systemd. Active director services

2. SBI dedicated networks known asa. Sbi Connectb. SB Connectc. SB Networkd. None of the above

3. SB Connect maintained bya. Datacraftb. Dimension datac. BSNLd. Airtel

4. Full form of RF (in connection of back-up connectivity)a. Radio frequencyb. Radio firewallc. Rapid frequencyd. None of the above

5. Toll free no. of Dimension Data isa.1800-405-0724b. 1800-425-0724c. 1800-625-0724d. None of the above

6. Active directory services has been acquired froma. Microsoftb. Infosysc. IBMd. Sun micro system

7. A password is best described as a method of usera. Identificationb. Authorisationc. Authenticationd. Confirmation

8. In a Computer network an IP address specifies a :a. Network connectionb. Router gateway


c. Computer in the networkd. Device on the network

9. The software that is being used in our foreign offices of our bank is calleda. B@ncs24b. I-Flexc. FINACLEd. BANKCOM

10. SB Connect, the dedicated lease line connectivity is maintained bya. FNS Australiab. Datacraft Singaporec. TCS Indiad. Dimension Data

11. Minimum length of password in CBS has ___ charactersa. 4b. 5c. 6d. 8

12. Disaster Recovery Centre of the Bank is located ata. Bangaloreb. Chennaic. Delhid. Kolkatta

13. Which of the following software is used for viewing Corporate General Ledger(CGL) at branch levela. B@ncslinkb. B@ancs24c. Finance Oned. Exim Bills

14. Which of the following combinations is/are correct?a. TCS – System Integrating Agency for Core Banking Solution(CBS)b. Tech mahindra – Internet Bankingc. Infosys - Finnacle Software for foreign branchesd. All are correct

15. Which is the shortcut key to obtain previously used Customer no.(CIF) / Account Number?a. F7b. F10c. F12d. Alt+T


16. CIF (Customer Information File) creation has to be validated with a minimum score of ____ for free operation of accounts created under the said customera. 11b. 99c. 100d. 110

17. Who is a Vault Teller in CBS ?.a. A Vault Teller is the Joint custodian i.e. the Accountant of the Branchb. A Vault Teller is the user who replenishes cash in ATM.c. A Vault Teller is the user is working in cash department of a branch.d. A Vault Teller is the user is working in CPC

18. Which of the following application is presently not under ___ Single Sign On‖ Login?a. ATM Webb. CMSc. DWPd. EMS

19. What is a Check Digit?a. it is used by the system to verify the correctness of the Customer/ Account number.b. it is used for checking the balance in the accountc. it is the number used by Finance one for EODd. it is the internal server reconciliation mechanism for Yearend processing

20. Who Is a Teller in CBS?a. All Staff handling cash in any branchb. Any user in Core Banking systemc. Sales force members of Housing loansd. one who tells the details to the customer

21. What are User types in CBS ?a. They represent the roles or different functionaries in a branchb. They represent the types of menus in CBSc. They represent the users in corporate internet bankingd. They represent the types of reports in CBS

22. What is user capability level in CBSa. It refer to various reports in CBSb. It represent the users in corporate internet bankingc. It refers to the powers assigned to each user for performing financial transactions in the system.d. None of these

23. IBTS in CBS refers toa. Inter Branch Transfer Systemb. Inter Branch Technical System


c. Inland Bill Transfer Systemd. Inter Bank Technical System

24. VPS – Vendor Payment System is used in CBS fora. Customer Transactionb. Inter Branch Transactionsc. Non-Customer Transactionsd. Charges – Expenses payment transactions

25. B@ncs24, Software we use in CBS, has been purchased froma. M/S Comlink Services, USAb. M/S Financial Network Services, Australiac. M/S Oracle Corporation, USAd. HP Systems, USA


BANKING AND FINANCE

1. With an aim to educate public on e-transactions, formal sector borrowings and insurance purchase, The Reserve Bank of India (RBI) is going to launch financial literacy drive on pilot basis in nine states. The 9 states will be Uttar Pradesh, Andhra Pradesh, Maharashtra, Chhattisgarh, Bihar, Odisha, Karnataka, Telangana and Haryana.

2. HDFC, the second largest private sector lender of the country has been listed in Domestic Systemically Important Banks (D-SIBs) by the Reserve Bank of India. It is the third bank of the country to find a place in the list after SBI and ICICI.

3. The five banks of BRICS Interbank Cooperation Mechanism (ICM) have signed an agreement to establish local currency credit lines and to develop cooperation on credit lines. The five banks are: Export-Import Bank of India, China Development Bank, Brazilian Development Bank, Russia’s Vnesheconombank and Development Bank of South Africa.

4. The Parliament has passed the Banking Regulation (Amendment) Bill, 2017 which amended the Banking Regulation Act, 1949 for handling the cases of non-performing assets (NPA’s). The act empowers the Central Government to authorize the Reserve Bank of India to give directions to the banking companies to resolve the issues of NPA’s under the Insolvency and Bankruptcy Code, 2016.

5. The central Bank is about to issue new bank notes of Rs.50 denomination with fluorescent blue as the base colour. RBI also clarified that the old series of Rs.50 denomination will continue to remain as legal tender. The dimensions will be 66mX135m. On the front side It will have Mahatma Gandhi’s picture at the centre. Micro letters Bharat in devnagri,INDIA,RBI,50 and Ashok Pillar Emblem will also be seen on the right side.

6. ICICI Bank has announced the launch of Instant Credit Card Service that will enable its savings account customers to get a credit card instantly, in a completely digital and paperless manner. There is a credit limit of up to Rs 4 lakh based on pre-checked bureau scores.

7. IDFC Bank has partnered with digital payments company Zeta, to launch ‘IDFC Bank Benefits’ announced on 9th August 2017.

8. Commodity derivatives bourse Multi Commodity Exchange Ltd (MCX) has received markets regulator Securities and Exchange Board of India’s (SEBI) approval to launch India’s first gold options contract.

9. RBI sets up Supervisory Colleges for six Scheduled Commercial Banks. These six Scheduled banks are State Bank of India, ICICI Bank Ltd., Bank of India, Bank of Baroda, Axis Bank Ltd. and Punjab National Bank.

10. Canara Bank has hit the international debt market with a benchmark dollar bond issue that will have a tenor of 5 years. Through this issue, Canara Bank will raise $400 million as part of its $2 billion medium-term note programme.


11. Kotak Mahindra Bank has launched a new service called “ Kotak Remit”. This service is an Aadhaar-based integrated outward forex remittance solution for both customers and non-customers.

12. Bajaj Allianz General Insurance and Punjab National Bank have signed an agreement for the distribution of Bajaj Allianz General Insurance Products through the bank’s network of 7,000 branches.

13. 36th Foundation Day of National Bank for Agriculture and Rural Development (NABARD) was celebrated at Vigyan Bhavan in New Delhi on July 11, 2017.

14. According to the Reserve Bank of India, Country’s foreign-exchange reserves rose past $400 billion for the first time ever.

15. SBI launched FTSE SBI Bond Index series in partnership with global index provider FTSE 100, which will give tools to investors from India, the UK & globally to analyse India’s government bond market, & drive growth in this market

16. Artificial intelligence banking platform Payjo launched an AI-powered chat assistant for SBI to addresses customer enquiries. The chat assistant, known as SBI Intelligent Assistant, or SIA.

17. RBI announced that Masala bonds will be treated as External Commercial Borrowings (ECB) from 3rd October 2017 thereby freeing up more investments by FPIs. Masala bonds are rupee-denominated overseas bonds.

18. SBI launched a CSR (Corporate Social Responsibility) initiative, SBI Gram Seva, which will work in the areas of health, education, environment & rural infrastructure.

19. Former RBI Governor Raghuram Rajan has written a book titled 'I Do What I Do: On Reform, Rhetoric and Resolve'.

20. RBI notified that peer-to-peer (P2P) lending platforms need to be regulated & treated on par with non banking financial companies (NBFCs). Few important P2P lending platforms in India are LenDen Club, Faircent, Qbera, Lendbox, Rupaiya Exchange & Monexo.

21. As per Finance Ministry, RBI will introduce 100 rupees coin to mark the birth centenary (100th anniversary) of AIADMK founder Late Dr. M G Ramachandran.

22. SBI is India’s most trusted & most popular bank according to a survey conducted by Brand Finance, London.

23. Nepal SBI Bank, a subsidiary of SBI, launched its fully automatic digital banking services in Kathmandu.

24. RBI allowed systematically important NBFCs to sell & market the new pension scheme (NPS).


25. Lok Sabha passed a bill to approve the merger of associate banks with the SBI. Lok Sabha passed the bill to repeal the SBI (Subsidiary Banks) Act 1959, State Bank of Hyderabad Act 1956 & to further amend the State Bank of India Act, 1955, following the merger of five associates with the parent SBI.

26. Rajnish Kumar has been appointed as the new chairman of SBI, for 3-year term. Kumar will succeed Arundhati Bhattacharya.

27. Vijaya Bank bagged the first prize under the Rajbhasha Kirti Puraskar (Region C) for the year 2016-17.

28. IDBI Bank launched ‘Project Nishchay’ in partnership with Boston Consulting Group (BCG) to accelerate its turnaround program & improve financial performance. Karnataka Bank bagged the ‘best bank’ award among small banks for the use of technology for financial inclusion at the 13th IDRBT Banking Technology Excellence Awards 2016-17.

29. NABARD conferred the ‘best performance award’ for 2015-16 & 2016-17 to Karnataka Vikas Grameen Bank (KVGB) for its work in the field of credit-linking joint liability groups (JLGs).

30. On 11th July 2017, Union FM Jaitley inaugurated the 36th NABARD Foundation Day & Silver Jubilee of SHG Bank Linkage Programme, in New Delhi. Self Help Group Bank Linkage Programme (SHG BLP) is a pioneering initiative of Financial Inclusion by NABARD.

31. Government made biometric identification Aadhaar mandatory for all post office deposits, PPF, the National Savings Certificate scheme & Kisan Vikas Patra. All depositors will have to provide Aadhaar number and link it with their accounts till December 31, 2017.

32. ADB will provide a USD 152 million to Nepal for the implementation & enhancement of its power transmission & distribution. ADB & Nepal’s Ministry of Finance signed the loan agreement in Kathmandu.

33. Finance Ministry & World Bank signed a grant agreement of $24.64 million from the Global Environment Facility (GEF) of the World Bank for ecosystem service improvement project.

34. In its 4th Bi-monthly policy review of October 2017, RBI kept the repo rate unchanged at 6%, reverse repo rate at 5.75%, and the Bank Rate at 6.25%. It also Cuts economic growth forecast to 6.7% from 7.3% for FY'18.


NATIONAL AND STATE NEWS

1. Himanta Biswa, the Finance Minister of Assam will head a Group of Ministers (GoM) constituted by the GST Council to make the composition scheme more attractive and review the GST tax rates on restaurants.

2. Prime Minister NarendraModi has laid the foundation stone for Bhadbhut Barrage to be constructed over Narmada river in Bharuch, Gujarat.

3. Union Government launch operation “Insaniyat” to help Rohingya refugees in Bangladesh. Rohingya are stateless ethric minority (mostly muslim) from rakhine province of Budhist Majority Myanmar.

4. The executive committee of the National Mission for Clean Ganga (NMCG) has approved 8 projects for sewage management, treatment of drains and surveillance of Ganga River under NamamiGange Program. These projects will be implemented in Uttar Pradesh, Bihar and West Bengal.

5. The first ever meeting of newly constituted Economic Advisory Council to Prime Minister (EAC-PM) was recently held at NITI Aayog in New Delhi.

6. A task force has been constituted by the Union Ministry of Water Resources, River Development and Ganga Rejuvenation for the speedy implementation of the various ongoing projects under NamamiGange scheme.

7. With the aim of Kuposhan Mukt Bharat, the National Institution for Transforming India (NITI) Aayog has launched the National Nutrition Strategy which will bring nutrition in the National Development Agenda.

8. Under the Mission Parivar Vikas, the Ministry of Health and Family Welfare has launched two new contraceptives Antara and Chayya in the ten states.

9. The National Institution for Transforming India (NITI) Aayog has constituted an Expert Task Force for creating new jobs by increasing the country’s exports. The Task Force will be headed by Dr. Rajiv Kumar, Vice Chairman of NITI Aayog.

10. With an aim to introduce latest technology in education sector and to provide digital platform to teachers, Union Ministry of Human Resource and Development has launched a portal - diksha.gov.in.

11. In order to protect its domestic industries from cheap subsidized imports, Union finance Ministry on the recommendations of Directorate General of Anti-Dumping and Allied Duties (DGAD) has imposed countervailing duty on certain Chinese steel products for a period of five years.

12. In order to tackle on-board disruptive and uncivilized behavior by the passengers, the Civil Aviation Ministry has issued certain rules for no-fly list.


The revised CAR defines three categories of the unruly behavior:Level 1: Unruly verbal behavior, ban up to 3 months.Level 2: Physical unruliness, ban up to 6 monthsLevel 3: Life threatening behavior, ban up to 2 years or more

13. Bharat Petroleum Corporation (BPCL) is all set to become a Maharatna company soon. The decision was taken by a panel headed by the Cabinet Secretary to enable the company to expand its operation both in India and in abroad. Currently the company has Navratna status.

14. The Union Ministry of Shipping has renamed Kandla Port as Deendayal Port by exercising its powers under Indian Ports Act, 1908.

15. Under its ambitious Digital India Mission, the Union Government (Ministry of Consumer Affairs, Food and Public Distribution) has launched web portal of Warehousing Development and Regulatory Authority (WDRA) and Electronic Negotiable Warehouse Receipt (e-NWR).

16. The Ministry of Commerce and Industries has launched Contact@DGFT, an online service facility for effective resolution of foreign trade related issues. The facility will be provided on the official website of the Directorate General of Foreign Trade (DGFT).

17. The Cabinet Committee on Economic Affairs has given approval to the survey project to acquire 48,243 Line Kilometer 2D seismic data for appraisal of Indian Sedimentary Basins.

18. With an aim to introduce transparency in food inspection and sampling, the Food Safety and Standards Authority of India (FSSAI) has introduced a nationwide online platform-FoSCoRIS.

19. In order to develop new drugs and technologies in Homeopathy, India’s first advanced Homeopathy Virology Lab was recently inaugurated by the AYUSH Minister Shripad Naikat Dr. Anjali Chatterjee Regional Research Institute for Homeopathy in Kolkata.

20. The Union cabinet has approved an additional 1% Dearness Allowance (DA) for Central Government employees and dearness relief to pensioners. This will be applicable retrospectively from 1st July 2017.

21. The Union Home Ministry following the orders of Supreme Court has decided to grant citizenship status to nearly one lakh Chakma and Hajong refugees who entered into the country from erstwhile East Pakistan fifty years ago and are living in Northeast.

22. The Ministry of External Affairs (MEA) has launched India’s first Videsh Bhawan under a pilot project by integrating all Regional Passport Offices and the other allied departments under a single roof.

23. With an aim to increase the research activities in the ocean science and to develop technology to harness ocean resources, the Ministry of Earth Sciences has decided to launch Deep Ocean Mission by 2018.


24. With an aim to improve the condition of small and marginal farmers, the Union Ministry of Science and Technology is planning to create Farm Zone which is a collective open source data platform for smart agriculture using biological research.25. Prime Minister Narendra Modi has inaugurated Rajaswa Gyan Sangam 2017, a conference of senior tax administrators at Vigyan Bhawan, New Delhi.

26. Through a new alternative mechanism, the Department of Investment and Public Asset Management (DIPAM) has approved 100% strategic disinvestment of Central Electronics Ltd (CEL).

27. Following the recommendations of Lt. Gen. Shekatkar Committee, the Union Cabinet Committee on Security (CCS) has given its approval for the first phase of Army reforms.

28. The Revenue Department under the Union Finance Ministry has imposed an anti dumping duty on certain tempered glass imported from China for the next five years.

29. The Union Home Ministry launched digital police portal under Crime and Criminal Tracking Network and System Project (CCTNS) in order to focus on smart policing to provide better services to the citizens.

30. In a historic judgement, the apex court has struck down the instant triple talaq (Talaq-e-Biddat)stating that it is violative of Right to Equality under article 14 further emphasizing that it cannot be protected by freedom of religion under article 25 of the Indian Constitution.

31. To promote India’s achievements in sports, the Union Ministry of Sports and Youth Affairs has decided to establish the country’s first National Sports Museum at Jawaharlal Nehru Stadium, New Delhi.

32. Stating that Right to privacy is an intrinsic part of Right to Life and personal liberty under article 21 of the Constitution, the apex court ruled that right to privacy is a fundamental right.

33. In order to eliminate measles and control rubella diseases till 2020, the Union Ministry of Health and Family Welfare has started this single shot Measles-Rubella vaccination for the children of the age group 9 months and 15 years in phased manner.

34. India has ratified the second commitment period of the Kyoto Protocol announced on 9th of August 2017 that commits countries to contain the emission of greenhouse gases, reaffirming its stand on climate action.

35. NITI Aayog made partnership with six Indian states to transform their Health and Education sectors. The selected states are UP, Assam, Karnataka, Madhya Pradesh, Odisha and Jharkhand.

36. New Song is released for Swachh Survekshan-2018. Swachhata Ki Jyot Jagi Hai’ is the name of this new anthem which is scripted by Prasoon Joshi.


37. The National Conference of Chief Secretaries of States and Union Territories organised by NITI Aayog is held in New Delhi on July 10, 2017.

38. Ahmedabad declared as India’s first World Heritage City.

39. The Cabinet Committee on Economic Affairs has given its approval for upgradation and widening of 65 kms of Imphal-Moreh Section of NH-39 in Manipur at a cost of Rs. 1630.29 crores.

40. Jharkhand Governor gives assent to Religious Freedom Bill, 2017. The bill seeks to prevent forceful conversion and with the Governor’s assent, Jharkhand has become the seventh state in the country to have anti-conversion law.

41. The much awaited lucknow Metro has been inaugurated. It will be open for the public through a stretch of 8.5 kms from Transport nagar to Charbagh.

42. The two-week long ‘Narmada Mahotsav Yatra has been started in Gujarat marking the completion of Sardar Sarovar Dam Project.

43. Andhra Pradesh Economic Development Board has signed anMou with Hyperloop Transportation Technologies for developin India’s first Hyperloop Project.

44. In order to provide contamination free drinking water, a new underground water treatment plant has been commissioned at Sadhutilla in the southern part of Agartala, Tripura

45. The fifth edition of Coastal Shipping and Inland Water Transportation Summit will be hosted by Kochi.

46. Assam Government for the first time has extended Armed Forces Special Powers Act (AFSPA),1958 on its own by declaring entire state a disturbed area for six more months under section 3 of the act.

47. 600 years old walled city in the Ahmedabad has been provided with the status of India’s first World Heritage City by United Nations Educational, Scientific and Cultural Organisation (UNESCO).

48. The Geographical Indications Registry (GIR) has granted Geographical Indication status to Gobindobhog rice, a speciality from West Bengal’s Burdwan district.

49. The Karnataka Government has signed a Memorandum of Understanding (MoU) with Microsoft to develop India’s first ‘Farm Price Forecasting Model’ in order to stabilizing the farmer’s income.

50. Swachh Sarvekshan Gramin 2017 is a survey launched by Ministry of Drinking Water and Sanitation in which Kerala and Haryana performed top as almost all their rural households has access to toilets.


51. The Haryana food and drugs administration department has banned flushing/mixing of liquid nitrogen with any drink or food article. The ban was imposed under section 34 of the Food Safety and Standards Act (FSS), 2006.

52. On 3rd August 2017 ,Minister of State in the Ministry of Civil Aviation Shri Jayant Sinha informed that the Indian Government is encouraging to develop green airports. The Cochin International Airport Limited (CIAL) became the first airport in the world, to be completely powered by solar energy. Green Airports in Andhra Pradesh.


CENTRAL GOVERNMENT SCHEMES

➢ Government has launched Sampoorna Bima Gram (SBG) Yojna Under which at least one village with a minimum of 100 households will be selected in each district of the country to cover all households of the identified village with minimum of one Rural Postal Life Insurance Policy.

➢ President has laid the foundation stone of Link-4 of Saurashtra Narmada Avataran Irrigation Scheme (SAUNI) in Rajkot district of Gujarat with an aim to fill 115 dams of the saurashtra region by diverting the overflow of water from Sardar Sarovar Dam on Narmada river.

➢ Government extends FAME India Scheme by six months. The scheme was launched under National Electric Mobility Mission Plan (NEMMP) in 2015 with an aim to promote eco-friendly vehicles in the country by providing fiscal and monetary incentives.

➢ Government has launched Pt. Deen Dayal Upadhyaya Vigyan Gram Sankul Pariyojna in Uttarakhand. Under the scheme, the Department of Science and Technology will adopt few clusters of villages in the state with an aim to transform them into self-sustainable units by utilizing the local resources and skills alongwith the application of Science and Technology. This will result in the value addition of the local produce which will help in sustaining rural population.

➢ Government has launched PradhanMantri LPG Panchayat Scheme to replace conventional fuel with the LPG connections in the rural areas.

➢ The scheme will provide a back up to the existing Pradhanmantri Ujjwala Yojna.

➢ Government has launched Pradhan Mantri Sahaj Bijli Har GharYojna: “Saubhagya” to provide last mile connectivity to all the households identified under Socio-Economic and Caste Census Data 2011.

➢ Government has launched Wood is Good Campaign to promote wood as a climate friendly resource and a substitute for plastic and steel.

➢ PM Modi launched - Pradhan Mantri Sahaj Bijli Har Ghar Yojana ‘Saubhagya’ to provide electricity connections to over 4 crore families in rural & urban areas by December 2018. India will achieve the target of power for all by December 2018, while all villages will be electrified by the end of 2017.Highlights of Saubhagya Scheme :• The scheme means Sahaj Bijli Har Ghar Yojana,• It aims to provide access to electricity to all families in India• The scheme will provide free electricity connection to poor families of India,• The total outlay for Sahaj Bijli Har Ghar Yojana is pegged at Rs 16,320 crore,• The Centre will provide largely funds for the scheme to all States/UTs,• Saubhagya Yojana will give access to electricity to all ‘willing’ households in India.


➢ The Government is committed to create an additional carbon sink of 2.5-3 billion tonnes of CO2 by increasing the forest cover from 24% to 33% of the geographical area.

➢ Government has launched Swachhta Hi Seva Campaign, a nationwide fortnight long sanitation campaign to highlight the NDA government’s flagship cleanliness initiative Swachh Bharat Mission.

➢ Swasth Bachche Swasth Bharat Programme has been launched by Human Resource Development minister Prakash Javdekar as an initiative of Kendriya Vidyalaya Sangathan (KVS) to prepare a physical health and fitness profile card for more than 12 lacs Kendriya Vidyalaya students.

➢ The Cabinet Committee on Economic Affairs (CCEA) has given the approval for changing the name of existing SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) scheme as Pradhan Mantri Kisan Sampada Yojna (PMKSY).

➢ NITI Aayog has launched Mentor India Campaign to guide and mentor students at more than 900 Atal Tinkering Labs by engaging leaders who can spend one to two hours every week in such labs.

➢ Ministry of Rural Development has launched Aajeevika Grameen Express Yojana to provide an alternative source of livelihoods to members of Self Help Groups (SHGs) working under its parent scheme DAY-NRLM.• GOI decided to launch a new sub-scheme named• “Aajeevika Grameen Express Yojana (AGEY)” as part of the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).• Self-Help Groups under DAY-NRLM will operate road transport service in backward areas. This will help to provide safe, affordable & community monitored rural transport services to connect remote villages with key services & amenities.• This will also provide an additional avenue of livelihood for SHGs.• Community Investment Fund (CIF) provided to Community Based Organization (CBOs) under DAYNRLM will be utilized to support the SHG members in this new livelihood initiative. The beneficiary SHG member will be provided an interest free loan by the CBO from its Community Investment Fund upto Rs.6.50 lakh for purchase of the vehicle. Alternative, CBO will own the vehicle & lease it to an SHG member to operate the vehicle & pay lease rental to the CBO.• AGEY will be initially implemented in 250 Blocks in the country on pilot basis with each Block provided upto 6 vehicles to operate the transport services.

➢ It will be done by facilitating them to operate public transport services in backward rural areas.

➢ President Ram Nath Kovind has launched Mata Amritanandamayi Math Project "Jeevamritham "to provide the filtration system for cleaning drinking water to 5000 villages across India, in Kollam district in Kerala.

➢ Government has launched Platform for Effective Enforcement for No Child Labour


(PENCIL) Portal. PENCIL is an electronic platform that aims at involving Centre, State, District, Governments, civil society & general public in achieving the target of child labour free society.

➢ Union Home Minister has launched YUVA – a skill development program. It is an initiative by Delhi Police under Pradhan Mantri Kaushal Vikas Yojana for providing mass job linked skill training for the selected youth.

➢ Finance Minister has launched Pradhan Mantri Vaya Vandana Yojana (PMVVY), a pension scheme exclusively for senior citizens with 8% fixed rate of interest on their savings. Under this scheme, there will be an assured return of 8% over a tenure of 10 years. It can be purchased offline as well as online through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this scheme.

➢ Union Government has launched a portal, e-RaKAM, to provide a platform to farmers for selling agricultural produce. • Government launched a portal, to provide a platform to sell agricultural produce called e-RaKAM.• It is a joint initiative by state-run-auctioneer MSTC & Central Warehousing Corporation arm CRWC.• e-Rashtriya Kisan Agri Mandi (e-RaKAM) portal is launched to provide a platform for farmers to sell agricultural produce.• E-RaKAM is a digital initiative aims to bring together the farmers, PSUs, civil supplies & buyers on single platform to ease selling & buying process of agricultural products.


STATE GOVERNMENT SCHEMES

➢ Himachal Pradesh government implemented the Senior Citizen Health Insurance Scheme to provide easy access to curative geriatric health care services by way of additional cover. The scheme would provide top-up coverage of Rs 30,000 per senior citizen to all existing Rashtriya Swasthya Bima Yojna (RSBY) smart card holders.

➢ Karnataka Government has launched Mathru Poorna scheme, aimed at providing free mid-day meals to pregnant & lactating women in rural areas. The scheme aims to reduce child malnutrition and curb infant mortality.

➢ 'She Means Business' program of Facebook has been launched for women entrepreneurs in Odisha. Under the scheme, 25000 women entrepreneurs and Self Help Group members will be given training on digital marketing skills.

➢ Maharashtra Government has approved a revised policy of 'Majhi Kanya Bhagyashree' scheme, under which families having an yearly income of up to Rs 7.5 lakh will be benefited. It is aimed at improving the skewed girl child ratio, prevent sex determination & female foeticide and support female education.

➢ Odisha Government has launched ‘Sampurna (Sishu Abond Matru Mrityuhara Purna Nirakaran Abhijan) Yojna’ for pregnant women. Under the scheme, Odisha government will provide Rs. 1,000 as transport cost for pregnant women to travel to the hospital.

➢ Madhya Pradesh Government has launched the CM's Skill Promotion & Skills Scheme to provide jobs by providing employment oriented training to the youth. Youth in the age group of 18-35 are being benefitted through Mukhya Mantri Kaushal Samvardhan Yojana and Mukhya Mantri Kaushalya Yojana.

➢ Meghalaya Government has launched an ambitious flagship program “Livelihood Intervention & Facilitation of Entrepreneurship” (LIFE) at Songsak. It will focus on capacity building.

➢ Jharkhand Government launches Shaheed Gram Vikas Yojna for developing the villages of freedom fighters in the state. These villages belonging to tribal freedom fighters were neglected for a very long time due to considerable presence of left wing extremism. Under the scheme, the Government will provide the basic amenities to the villagers apart from improving the infrastructure of the village.


INTERNATIONAL NEWS AND FOREIGN AFFAIRS

➢ National Disaster Response Force (NDRF) has recently conducted first BIMSTEC Disaster Management exercise- 2017 in New Delhi from 10th to 13th October.

➢ The Union cabinet has approved the signing of the Memorandum of Cooperation (MoC) between India and Japan on establishing a liquid, flexible and Global LNG market.

➢ The Union Finance Minister Arun Jaitley has participated in the G-20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Washington D.C. The agenda of the meeting was global economy and framework for growth, compact with Africa and International Financial Architecture.

➢ Hurricane Nate has made landfall near the mouth of Mississippi river in Louisiana, United States of America. A state of emergency has been declared in four southern US states of Louisiana, Mississippi, Alabama and Florida.

➢ The People’s bank of China and the Central Bank of China has prohibited individuals and organisations from raising funds through Initial Coin Offering stating that this can result in illegal fund raising.

➢ With the theme- ‘Stronger Partnership for Brighter Future’, the 9th edition of BRICS summit was held in Xiamen, China. China has hosted the summit for the second time, first time in 2011.

➢ UJALA (Unnat Jyoti for Affordable Lighting for All) scheme under the Union Ministry of Power has been launched in the Melaka state of Malaysia by Efficiency Services Limited.

➢ With an aim to promote tribal handicrafts like handloom products, tribal jewellery, paintings, weaves and embroidery, Tribal Cooperative Marketing Development federation of India Limited (TRIFED) has signed anMoU with the e-commerce giant Amazon. Under the MoU, amazon will showcase the tribal handicraft items for online sale.

➢ The Union Cabinet has approved a Memorandum of Understanding (MoU) between India and Afghanistan to provide technical cooperation on Police training and development.

➢ Jordan launches Sahara Forest Project to turn its huge desert area into farm lands. The project will achieve its aim by combining saltwater-cooled greenhouses with solar power technologies.

➢ India-US in talks for C-17 deal: India is continuously negotiating with US for buying another Boeing C-17 Globemaster transport aircraft to be added to its fleet of 10.

➢ London has secured the top spot in 2017 Global Financial Centres Index among 92 financial centers released by Z/Yen and China Development Institute. Mumbai secured 60th position.


➢ World’s oldest high IQ society, Mensa International has announced that Indian origin Dhruv Garg has achieved the score of 162.

➢ The US Food and Drug Administration has approved first gene therapy that will use the patient’s own cell to treat acute lymphoblastic leukaemia. This step will provide new treatment approaches for the cancer and other life threatening diseases. In this therapy, the T-cells will be removed from the patient’s blood and will be encoded with the viral vector in the lab and will be reprogrammed to target cancer cells.

➢ Qatar’s Cabinet has approved a draft law making permanent residency available to some non-citizens.

➢ International Army Games involve 28 events organized in five Countries i.e. Russia, Belarus, Azerbaijan, Kazakhstan and China.

➢ Uganda becomes the 19th African Countries out of the 54 African nations to which India offered e-Visa Facility.

➢ Bangladesh has signed a $4.5 billion line of credit (LoC) agreement with India for its infrastructure & social sector development.

➢ Austria’s law banning face veils such as burkhas or niqabs has come into effect from now.

➢ China marked 68th National Day on 01st Oct. 2017

➢ The world's highest sandcastle is now standing 16.68 meters tall in the German city of Duisburg.

➢ Hurricane Harvey, the most powerful storm to hit Texas causing the Earth's crust to deform and sink by two centimetres in the area.

➢ Prince Charles has become the longest-serving Prince of Wales in history.

➢ Russia & Iraq restored scheduled commercial airline services for the first time since 2004.

➢ Saudi Arabia’s King Salman issued a decree allowing women to drive for the first time. The order will be implemented by June 2018. Saudi Arabia is the only country in the world to forbid women from driving.

➢ Norway's sovereign wealth fund, the largest in the world, reached the value of $1 trillion for 1st time.

➢ WHO released its first tranche of emergency funding of $175,000 to provide life-saving healthcare to the "vulnerable population" in Bangladesh's Cox's Bazar.

➢ Indian Ambassador in UAE Navdeep Suri inaugurated 2nd Indian Workers’ Resource Centre (IWRC) in UAE to provide support & counseling to Indians in distress.


➢ Nepal launched its climate-smart snow leopard landscape management plan, leading the way in safeguarding this endangered species, also found in India, & its habitat.

➢ China launched its first cyber court specializing in handling Internet-related cases in the e-commerce hub of Hangzhou.

➢ Australian state govt. approved world's biggest single tower solar thermal power plant, a 150-MW structure to be built in South Australia by 2020.

➢ Malala Yousafzai secured a place at Oxford University after getting her A-level results.

➢ UN selected Dubai as the data hub for the Middle East North Africa & South Asia (MENASA) region for the city’s integrated initiatives to mine & manage data.

➢ European Parliament overwhelmingly approved a first-ever cooperation deal between the EU & Cuba.

➢ Malta becomes world’s 24th country to legalize Gay Marriage.

➢ Model United Nations (MUN) Regional Conference held at Kathmandu, Nepal. MUN is an educational simulation activity in which students can learn about diplomacy, international relations, & the United Nations.

➢ Bolivia’s President Evo Morales has declared his government’s independence from World Bank & IMF.

➢ Indonesia has named waters in its exclusive economic zone that overlap with China’s expansive claim to the South China Sea as the North Natuna Sea.


SCHEMES RELATED TO BANKING FINANCE

1) Kisan Vikas PatraKisan Vikas Patra is small saving instrument which was launched in 1988 but closed in 2011. It was re-launched in 2014 through post office and those banks that are authorized to operate PPF scheme. Kisan Vikas Patra (KVP) is regulated by KVP Rules 2014.Features of Kisan Vikas Patra• Denomination used in KVP: Rs 1000, Rs5000, Rs 10000 and Rs 50000• Maturity period: 113 months• Types of certificates: Category Single, Joint A-Type and Joint B-Type• Minimum deposit : Rs 1000• Maximum deposit: No limit• Rate of interest:7.6%• Certificate can be encashed after two and half years• Facility of nomination is available• Certificate can be transfer from one person to another and from one post office to another• No tax benefit is available for this scheme2) Gold Monetization SchemeIt is a scheme that facilitates the depositors of gold to earn interest on their metal accounts. Once the gold deposit in the account, it will start earning interest on it.Tagline: Earn while you secureImplemented by: All scheduled/commercial banks excluding RRBsDeposit limit: Minimum-30 g - Maximum-No limitTenure: 1 to 3 years (short term)5 to 7 years (medium term)12-15 years (long term)3) Sovereign Gold Bond SchemeA sovereign Bond is a debt security issued by national government. It can be denominated in a foreign currency or government’s own domestic company. It is tradable on stock market and available in physical and demat form.Tagline: Invest Wisely, Earn SafelyMinimum limit: 2 gm of goldMaximum limit: 500 gmIssued by: RBI on behalf of Union GovernmentTenure: Maximum 8 years but exit option is from 5th year4) Indian Gold Coin SchemeUnder this scheme government sell gold from its own trading centre. Ashok Chakra engraved on one side and the face of Mahatma Gandhi on the other side. It is available at MMTC (Metals and Mineral Corporation)Denomination: 5gm, 10gm and 20gm5) Sukanya Samrridhi YojanaSukanya Samrridhi Yozna is a girl prosperity scheme. It was launched by PM Modi as a part of Beti Bachao Beti Parao Campaign.Objective: To promote the welfare of girl childMinimum Deposit: Rs1000Maximum Deposit: Rs150000Maturity: 14 years from the opening of the account


Interest: 8.6%Tenure of deposit: 21 years of date of the opening accountAccount can be opened at Indian Post Office and Commercial Banks6) Jeevan Jyoti Bima YojanaJeevan Jyoti Bima Yozna was launched by PM Modi in 2015. It is an insurance scheme launched for the welfare of needy people.Minimum age for entry in scheme: 18yearsMaximum age for entry in scheme: 50 yearsMaximum Maturity Age: 55 yearsSum assured: Rs 200,000Annual Premium: Rs3307) Prime Minister Jan Dhan YojanaPradhan Mantri Jan Dhan Yojana (PMJDY) is a national mission for the financial inclusion to access financial services. Under this scheme a customer can opened with zero balance and if the customer want to get cheque book, the customer have to fulfill minimum balance criteria.Features of Prime Minister Jan Dhan Yojana• There is interest on deposit• Accidental insurance cover of Rs 1 lac• It also provide a life cover of Rs 30000• Overdraft facility up to Rs5000 which is available to only one account per household preferably8) MUDRA(Micro Units Development and Refinance Company)Micro Units Development and Refinance Company is a new institution set up by the government of India for the development of micro units and Refinance Company. It is a part of SIDBI (Small Industrial Development Bank of India). It was launched in 2015. Under the Pradhan Mantri MUDRA Yojana, MUDRA has created three products:1. Shishu: covering up to Rs 500002. Kishore: covering up to Rs 50,000 to 500,0003. Tarun: covering loans above Rs 500,000 to 10,00,000Features of MUDRA scheme• Its main purpose is to provide funding to non corporate small business sector• Under the scheme women, SC, ST and OBC are given preference while giving loans9) Indradanush SchemeGovernment has launched a plan Indradanush to boost functioning of Public Sector Banks. This plan basically focuses on the 7 areas that are as follow:• Appointments- As per the scheme Bank Board Bureau had replaced the existing appointment board• Distressing-With this focus will be on distressing the banks from Non Performing Assets.• Capitalization- Under this scheme government planned to infuse Rs 70000 crore in banks for the next four years.Allocation in four years is as follow:1. 2015-16 Rs25000 Crore2. 2016-17 Rs25000 Crore3. 2017-18 Rs10000 Crore4. 2018-19 Rs10000 Crore• Banking Empowerment-under this government is looking to introduce Employee Stock Ownership Plan (ESOPs) for the Public Sector Banks.


• Accountability-The government also provide new framework for the boost efficiency.• Governance- A process of governance reforms start from Gyan Sangam- a conclave of PSBs and financial institutions• Banking Reforms• Objective: To improve credit system and minimizing the political interference10) Indradanush 2.0Indradanush 2.0 scheme was launched in 2017. It is a comprehensive plan for the recapitalization of public sector lenders with a view that they remain solvent and fully comply with global adequacy norms. It will be finalized after completion of AQR (Asset Quality Review) by RBI. Asset Quality Review: Every year RBI inspector check bank books as part of its annual financial inspection process (AFI). In 2015, a special inspection was conducted and named as Asset Quality Review (AQR).


MASALA BOND, GREEN BOND AND JUNK BOND

A bond is a debt investment in which an investor loans money to an entity which borrows a fund for a defined period of time at a variable or fixed rate interest.It is similar to debentures but the key difference is that it is issued by a government institute.Following are the different types of the bonds1) Corporate Bonds - A corporate bond is a debt security which is issued by a company and sold to the investors.• Company’s assets are may be used as collateral in some cases.• The backing for the bond is usually depending upon the payment ability of the company.• The corporate bonds have considered higher risk than governmental bonds.2) Convertible Bonds- A convertible bond is a debt security that can be converted into predetermined amount of underlying company’s equity. Convertible bonds are issue to avoid the negative impression of company’s actions.3) Callable Bonds- Callable Bonds are also known as “redeemable bonds” as the bonds are redeemed prior to the period of maturity.4) Term Bonds- A term bonds are the bond which mature and come due on single date. A term bond possesses all the features of callable bonds.5) Government Bonds- Government Bonds are those bonds which are issued by the government to support government spending. These bonds are more secure than corporate bonds.Following are Some Other Important Bonds1) Masala BondMasala Bonds are the rupee denominated borrowings by Indian entities in overseas market. The word “Masala” is given by the IFC (International Finance Corporation) to represent Indian culture and cuisine. First Masala Bond was issued by the IFC (International Finance Corporation) when it raised Rs 1000 crore bond to fund infrastructure projects in India.Issuers of Masala Bonds• RBI has issued guidelines allowing following entities to issuerupee denominated bond overseas.• Indian Companies (Blue Chip Companies)• NBFCs ( Non Banking Finance Companies)• Infrastructure Investment Trust• Real Investment Trust Benefits to Investor• By investing in Masala Bonds, the investor gets tax deduction on interest income.• Capital gains from rupee appreciation are exempted from tax. Benefits to Indian Companies• If the issuer, issues bonds in rupees, then he gets rid of risk of currency fluctuation.• The bonds bring new and diversified set of investors for Indian Companies.Regulator of Masala BondsAs the Masala bonds are Indian Rupee denominated bonds, it is regulated by the Reserve Bank of India.2) Green BondsA Green Bond is a tax-exempt bond which is issued for the investment in the green projects or for the development of Brownfield sites. Brownfield Sites are the sites which are underutilized, have abandoned buildings or underdeveloped. Issuers of Green Bonds: Green Bonds are issued by following multilateral agencies:


• World Bank• Corporation• Government agencies• MunicipalitiesPurposeGreen Bonds are issued to encourage sustainability and development of Brownfield sites. Specifically it finance projects aimed at energy efficiency, pollution prevention, sustainable water management etc. Regulator of Green Bonds In India Green Bonds are regulated by SEBI (Securities Exchange Board of India).3) Junk BondsJunk Bonds refer to high yield or non-investment grade bonds. These are named as junk bonds as it involves high rate of risk in relation to investment bonds. It is fixed income instrument that carry a credit rating lower by Moody’s investor services. Investor demands high yield bonds as it yields high rate of return which in turn a compensation for their investment. Regulator of Junk Bonds In India Junk Bonds are regulated by SEBI (Securities Exchange Board of India).


CREDIT RATING AGENCIES

Credit Rating Agencies- Credit Rating Agencies provides objective analysis and independent assessment of companies and countries that issue securities. This assessment helps the investors and institutions whether these securities meet their obligations. There are top 3 three credit rating agencies of the world named as Moody’s, FITCH and Standard & Poor’sFitch Inc.• Fitch Inc. is the smallest of three Nationally Recognized Statistical Rating Organisation designated by the U.S. Securities and Exchange Commission.• Fitch was founded by John Knowles in Newyork City as Fitch Publishing Company• It published financial statistics for use in the investment industry• In 1924, Fitch introduced AAA though D rating system throughout the industry• Later it merged with London based IBCA in 1997• Headquarter: It is headquartered in Newyork (U.S) and London( U.K)• President & CEO: Paul TaylorMoody’s• Moody’s is founded by John Moody in 1909 to produce manual published basic statistic and general information about stocks and bonds.• It provides international financial research on bonds issued by commercial and government entities• It ranks the creditworthiness of borrowers using a standardized rating scale• According to Moody’s rating system, rates from Aaa to C are assigned. Aaa for highest quality and C s for lowest quality.• Headquarter: Newyork (U.S)• Head: Raymond W MC DanielStandard & Poor’s• Standard & Poor’s is the world’s leading Index provider and the foremost source of independent credit ratings. It provides financial market intelligence to decision makers.• It is founded by Henry Varnum Poor in 1860• It includes global ratings, global market intelligence, Dow Jones and global platts• Headquarter: Newyork ( U.S)• CEO: John L Berisford


FINANCIAL INSTRUMENTS

It is a claim against a person or an institution for payment of a sum of money or periodic payment in the form of interest or dividend at a specified future date. Financial Instruments can be classified in two types such as Capital Market Instruments and Money Market InstrumentsA) CAPITAL MARKET INSTRUMENTSCapital Market Instruments consist of long term instruments for the period of more than one year. It includes:1) Equity Shares- Equity shares represent the owner’s capital in the company. The holders are the real owners of the company.• They have a control over the working of the company.• Equity shareholders are paid dividend.• They provide permanent capital to the company and cannot redeem during life time of the company.2) Preference Shares – Preference Shares are shares of company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. These shares have their certain preferences as compared to other types of share. These shares are given two preferences such as:• Whenever the company has distributable profits, the dividend is first paid on preference shares.• Repayment of the capital at the time of liquidation.3) Debentures- A debenture is an acknowledgement of a debt. It is a document under company’s seal which provide for the payment of principal sum and interest thereon.• A debenture holder is a creditor of a company and interest is paid to him.• Debentures are to be repaid after a definite period of time.4) Derivative – A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. Derivative is itself a contract between two parties based upon the asset or assets.• The underlying assets include stocks, bonds, commodities, currencies.• It can be traded over the counter or an exchange.Derivative can be classified as follow:• Futures Contract- Futures Contract is an agreement between two parties for the sale of assets at an agreed upon prices.• Forward Contract- Forward Contract is similar to futures contract but the only difference is this that it is not traded on exchange but only traded on over the counter.• Swaps- It is a contract between two parties agreeing to trade long terms.• Options- It is also similar to futures contract but the key difference is that with an option buyer and seller is not obliged to make transaction if he or she decides not to.5) Bonds- A bond is a debt investment in which an investor loans money to an entity which borrows a fund for a defined period of time at a variable or fixed rate interest. It is similar to debentures but the key difference is that it is issued by agovernment institute.B) MONEY MARKET INSTRUMENTSMoney Market Instruments consist of short term instruments for a period of up to one year. It includes:1) Call Money - The Call Money Market deals in short term finance repayable on demand.


• Funds are lent and borrowed without collateral.• Maturity period of call loans varies from one day to fortnight.2) Treasury Bills - It is a short term debt instrument issued by government of India and is presently issued in three tenures i.e. 91 days, 182days and 364 days. • Treasury bills are zero coupon securities and pay no interest.• They are issued at discount and redeemed at face value at maturity.3) Certificate of Deposit - Certificate Deposit are used by banks and issued to the depositors for a specified period less than one year- they are tradable and negotiable in the market.4) Commercial Papers - It is used by corporate houses of India which should be a listed company. These companies need to obtain a specified credit rating from an agency approved by the RBI such as CRISIL5) Commercial Bills• Commercial Bills are issued by the All India Financial Institutions (AIFI), Non Banking Finance Companies (NBFCs), Scheduled Commercial Banks, Merchant Banks, Co-operative Banks and Mutual Funds.• Maturity of these bills is 30 days, 60 days and 90 days.


BANKING AND FINANCIAL TERMS

1. American Deposit Receipt (ADR) – It is a negotiable certificate issued by a U.S. bank representing a specified number of shares in a foreign stock traded on U.S exchange. ADRs are denominated in U.S. dollars.2. Anti Dated Cheque - If date mentioned on the cheque is earlier than the date it is presented to bank; it is called anti dated cheque. Anti Dated Cheque is valid up to 3 months. Earlier it was 6 months but now it reduced to 3 months.3. Arbitrage - Arbitrage is a process in which simultaneous purchase and sale of securities is done in order to earn profits with the difference in prices.4. Balance of Trade - Balance of Trade is a difference between country’s export and import for a given time period. It is the largest component of balance of payments.5. Balance of Payments - A statement that summarizes an economy’s transactions with the rest of world for a specified period of time is known as balance of payments.6. Bancassurance - It is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products.7. Bank Account - The account which is maintained by a financial institution for the customer is known as bank account.8. Bank Drafts - It is a negotiable instrument governed by the Negotiable Instrument Act 1881. It is a facility offered by the bank to its account holders only. A bank draft is a payment made by bank on the behalf of bank9. Bank Rate - It is a rate of interest which a central bank charges on loans and advances to commercial banks without any collateral. It is a long term rate of interest. It implies penalty over banks not complying with RBI rules such as not maintaining CRR and SLR.10. Banking Ombudsman - It is an authority to solve any complaints of the customer against the banks. If the customer is not satisfied with the compliant they can forward their complaint to governor of RBI.11. Basel Norms - Basel Norms are the set of recommendations for regulating banking industry in world. Basel Committee on Banking Supervision issued Basel Accords12. Bearer Cheque - A cheque which is payable to any person who present it for payment at the bank counter. Such cheques are risky as in case it lost, the finder may collect the payment from the bank.13. Bonds - A bond is a debt investment in which an investor loans money to an entity which borrows a fund for a defined period of time at a variable or fixed rate interest. It is similar to debentures but the key difference is that it is issued by a government institute14. Broker- Broker is a registered member of a Stock Exchange who buys or sells securities on behalf of his client and charges a commission such brokers are also known as commission brokers.15. Bull Market - Bull Market is a market situation where a buyer buys shares in a hope that prices will increase in near future and he will resale in order to earn profits.16. Call Money - The Call Money Market deals in short term finance repayable on demand. In this funds are lent and borrowed without collateral and maturity period of call loans varies from one day to fortnight.17. Call Option - It is an agreement that gives the right to investor to buy bonds or shares at a specified price and within a specified period.18. Capital Adequacy - It refers to the amount of capital the financial institution has to hold


as required by its financial regulator. This ensures the protection of depositors and investors and financial soundness of the bank.19. Capital Market - The segment of financial market of an economy from long term capital is raised via instruments such as securities, shares, bonds, debentures, mutual funds is known as securities market or capital market.20. Capital Reserves- Capital Reserves are undistributed reserves which is the part of company’s profit which is not paid out as dividends to the shareholders.21. Cash Reserve Ratio - It refers to certain percentage of total deposits the commercial banks are required to maintain in form of cash reserve with reserve bank in form of cash only.22. Cheque - A cheque is a negotiable instrument that is used for payments and settlements in India. It is an agreement between two organizations to make payments23. Cheque Truncation - Cheque Truncation is a system in which physical cheque is converted into electronic form in order to reduce physical movement of cheques.24. Certificate of Deposit - Certificate Deposit are used by banks and issued to the depositors for a specified period less than one year.They are tradable and negotiable in the market25. Commercial Paper- It is used by corporate houses of India which should be a listed company. These companies need to obtain a specified credit rating from an agency approved by the RBI such as CRISIL26. Commercial Bills - Commercial Bills are issued by the All India Financial Institutions (AIFI), Non Banking Finance Companies (NBFCs), Scheduled Commercial Banks, Merchant Banks, Co-operative Banks and Mutual Funds. Maturity of these bills is 30 days, 60 days and 90 days.27. Commercial Banks- It is a type of institution that provides services such as accepting deposits, making business loans and offering basic investment product.28. Core Banking Solutions- Core Banking Solution is a system where banks and their branches interconnected for the fast communication.29. Credit Rating- Credit rating is the process in which debtor is given a rate on the basis of paying back of debt in time. This service is basically provided to the large scale borrowers such as companies.30. Current Account- Current Accounts are the accounts opened for the business transaction, on the name of firm or company. These are never used for the purpose of saving and investment.31. Debentures- A debenture is an acknowledgement of a debt. It is a document under company’s seal which provide for the payment of principal sum and interest thereon.32. Demat Account - Dematerialized Account is an account where shares and other securities are held in electronic form rather than physical form.33. Derivative – A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. Derivative is itself a contract between two parties based upon the asset or assets.34. Dishonor of Cheque- No payment of cheque by the paying banker with a return memo giving reasons for the nonpayment.35. Double Financial Repression- It is the phenomenon when the bank faces financial repression on the both sides of the balance sheet. Repression on the asset side is a by product of SLR and on the liability side, continuing increase in inflation.36. Drawer- the person who holds an account in a certain bank and draws a cheque to make payment.


37. Drawee- the person to whom the cheque has been drawn.38. Escheat- When government acquires the property of a person having no nominee is termed as Escheat.39. Escrow Account - Escrow Account is held by the third party on the behalf of the other two parties that are in the process of completing transaction.40. Equity Shares- Equity shares represent the owner’s capital in the company. The holders are the real owners of the company.41. Factoring- A factor is a financial institution which offers services relating to management and financing of debts arising out of credit sales.42. Foreign Banks –A foreign branch bank is type of that is obliged to follow the regulations of both the home and host countries.43. Fixed Deposit Account- In this account a fixed amount of money is paid for a specific period of time on which bank pays high rate of interest. It is also known as Term Deposit.44. Green Bonds- Green Bonds are the bonds which are exempted from the tax and issued by qualified organizations for the development of Brownfield sites. Brownfield sites are the areas which are underutilized or underdeveloped.45. Global Depository Receipt- Global Depository Receipt is a certificate issued by more than one country for shares in a foreign country. The shares are held by the international branch of foreign bank.46. Hedge- Hedge is an investment to reduce the risk of adverse price movement in an asset.47. Indigenous Bankers- Indigenous Bankers are the individuals and partnership firms performing banking functions.They are local bankers. They can be distinguished as professional money lenders whose primary business is not banking but money lending.48. Interest Rate Swaps- It is the transfer of contractually agreed between two counterparties of their respective interest rate obligation.49. Investment Institutions- It includes the institutions which mobilize savings of public at large through various schemes and invest these into corporate and government securities.50. Internet Banking- Internet banking is also known as online banking, Virtual Banking and web banking. Internet Banking allows its user to execute transactions with the help of internet.51. Junk Bonds- Junk Bonds are kind of bonds which gives high yield at the very high rate of risk. These kinds of bonds are rated lower by credit rating agencies.52. Leverage- it is a technique in which debt is used to finance firm’s assets in order to increase profitability of the company. The firm which has more debts than equity is highly leveraged firm and vice versa.53. LIBOR (London Interbank Offered Rate) - It is a benchmark rate which some of the international banks charge for the short term loans.54. Liquidity Adjustment Facility- It allows banks to borrow money through repurchase agreements.LAF is used to aid banks in adjusting the day to day mismatches in liquidity.55. Masala Bonds- Masala Bonds are rupee denominated bonds i.e. bonds can be borrowed in Indian currency not in any foreign currency. These bonds can be issued by the Indian entities from overseas market.56. Merchant Banking- In this service bank provides consultancy services to its clients for financial, marketing, managerial and legal matters.57. MIBOR (Mumbai Interbank Offered Rate)- It is the rate at which bank can borrow funds from the other banks in Indian Interbank market. It is calculated everyday by the National Stock exchange


58. Monetary Policy- Monetary Policy is a process by which central bank of the country manage the supply of money which in turn effects on interest rates, inflation and growth of economy.59. Money Lenders- A money lender is a person or a group who typically offers personal loans at a high rate of interest.60. Money Market- The short term money market is known as Money Market.61. Mobile Banking- Mobile Banking is a system that allows customers to perform a number of financial transactions through a mobile device62. Multinational Banking- Multinational banks are those banks that physically operated in more than one country. It is also known as international bank. Narrow Banking involves mobilizing the larger part of the deposits in risk free assets such as government securities. In India narrow banking is implemented partially.63. NPA (Non Performing Assets)- Non Performing Assets refers to the classification of loans in the books of financial institutions that are in arrears. The debt is considered non- performing when it is not paid for the period of 90 days.64. Open Market Operations - It refers to buying and selling of government securities in open market in order to expand or contract the amount of money in banking system.65. Open/ Uncrossed Cheque- The cheque which is not crossed is known as Open Cheque or Uncrossed Cheque. The payment of such cheques can be obtained on the counter of the bank.66. Overdraft – With this facility a customer can withdraws more money from the bank account that has been deposited.67. Preference Shares – Preference Shares are shares of company’s stock with dividends that are paid out to shareholders before common stock dividends are issued68. Post Dated Cheque- If the cheque bears the any future date in the cheque that is known as Post Dated Cheque. Post dated cheque can be presented only on the future date which is written on the cheque.69. POS (Point of Sale)- The place where sales are made. On a macro level, a point of sale may be a mall, market or city. On a micro level, retailers consider a point of sale to be area surrounding the counter where customers paywhich is also known as “point of Purchase”70. Primary Market- The market in which the instruments of security market are traded directly between the capital raiser and instrument purchaser is known as primary market.71. Put Option- It is an agreement where investor has given a right to sell shares and bonds at a specified price and within a specified period.72. Regional Rural Banks- Regional Rural Banks are local level banking organizations operating in different states of India. RRBs were established in 1975 on the recommendations of Narsimham Committee. It is followed by Regional Rural Banks Act 1976. RRBs are regulated by NABARD (National Bank for Agriculture and Rural Development) act 1981.73. Retail Banking- Retail Banking refers to banking in which banking institutions execute transactions directly with consumers rather than corporate or other banks.74. Recurring Deposit Account- This account is opened by those who want to save small amount of money for a certain period of time and earn higher rate of interest.75. Scheduled banks- The banks which are included in Second Schedule of Reserve Bank of India Act 1934 are schedule banks. RBI includes only those banks under this schedule which fulfill the criteria laid down under section 42(6)(a) of RBI Act 1934.76. Saving Account- Saving Accounts are the individual accounts for the personal purpose of


saving. Most of the individuals save their investments with this account.77. Secondary Market- The market where the instruments of security market are traded among the primary instrument holders is known as secondary market.78. Self Help Group- It is a homogeneous group of micro entrepreneurs with affinity among themselves, voluntarily formed to save whatever amount they can conveniently save out of their earnings and mutually agree to contribute to a common fund of the group from which small loans are given to the members of their meeting their productive and emergent credit needs at such rate of interest, period of loan and the other terms as the group may decide.79. Stock Broking- Stock Broking is a function in which broker buys or sells securities on behalf of its client and charge commission on this transaction.80. Statutory Liquidity Ratio - It refers to proportion of deposits the commercial bank is required to maintain with them in form of liquid assets such as gold or RBI approved securities.81. Stale Cheque- If the cheque is presented after the 3 months of the date which is mentioned on the cheque is known as stale cheque. After the expiry of validity payment cannot be made.82. Stressed Assets- Assets of banking company comprises of loans given and investments made by the bank. Quality of the assets indicates how much of the loans taken by the borrowers are repaid in the form of interest and principle. Hence stressed assets = NPA + Restructured Advances + Loan Write off83. SWIFT Code- It is a standard format of the bank identifier code. This code is used particularly in international transfer of money between banks.84. Treasury Bills- It is a short term debt instrument issued by government of India and is presently issued in three tenures i.e. 91 days, 182days and 364 days. Universal Banking is a combination of commercial banking, investment banking, development banking, insurance and many other financial activities. It is a place where all products are available.85. Venture Capital - The term venture capital represents financial investment in highly risky project with the objective of earning a high rate of return.86. Wholesale Banking- Wholesale Banking refers to conducting banking business with industrial and business entities. This includes corporate, trading houses, multinational companies and domestic companies.87. Window Dressing- It is a strategy used by the mutual fund and other portfolio manager near the year or quarter end to improve the appearance of funds performance before presenting to clients.


IMPORTANT ECONOMIC TERMS, EVENTS, INITIATIVES

AAJEEVIKA To establish efficient and sustainable institutions of the rural poor that enable them to increase household income through livelihood enhancements and improved access to financial and selected public services, the Government of India launched National Rural Livelihood Mission (NRLM) in 2010. The NRLM was renamed as Aajeevika in June, 2011 and the new version launched in trible district Banswara (Rajasthan).

BAD BANKCambridge University defines BB as “A bank that takes bad assets (assets that have lost their value) and bad loans (debts that are unlikely to be paid back) from other banks or organizations and deals with them in order to help with economic problems”.

As per the European Investment Bank, the ultimate objective of a ‘Bad Bank’ is to maximize the value of the core-operations of the bank and minimize the amount of non-performing loans/non-performing assets, contributing to the stability of the financial system.

The idea of creating a BB offers the primary lender to establish a separate entity to deal with its ‘bad’ assets. Being free of troubled assets, the resulting ‘good’ bank works to restore investor and market confidence, raises capital more easily and at more affordable rates and resumes normalized lending.

GREEN BONDSGreen bonds functions like any other type of bond but, the proceeds must be used to support “green” projects such as renewable energy deployment, water, clean transportation and climate adaptation efforts. Green bonds are issued by multilateral agencies such as the World Bank, corporate and government agencies. Green bond issuance in India witnessed a 30 per cent year-on- year increase in 2016, making India the seventh largest green bond market globally.

BREXITThe United Kingdom’s (UK) prospectivewithdrawal from the European Union (EU) is widely known as Brexit, a portmanteau of ‘Britain’ and ‘exit’. Following the referendum held on 23 June 2016, in which 51.9% of votes cast were in favour of leaving the EU, the UK government intends to invoke Article 50 of the Treaty on European Union. This, within the treaty terms, would put the UK on a course to leave the EU by March 2019.

SOCIAL SECURITY SCHEMES BY GOVERNMENT OF INDIAATAL PENSION YOJANA (APY) –focussed on all citizens in the unorganised sectorPRADHAN MANTRI SURAKSHA BIMA YOJANA (PMSBY) – accidental death and disability insurance schemePRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (PMJJBY) – insurance coverage for Bank account holder Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

THE BENAMI TRANSACTIONS (PROHIBITION)


AMENDMENT ACT, 2016The Benami Transactions (Prohibition) Amendment Act, 2016, designed to curb black money and passed by parliament in August 2016, came into effect. The new law amended the Benami Transactions Act, 1988 and renamed as the Prohibition of Benami Property Transactions (PBPT) Act, 1988. The amendment act also to strengthen the parent Act in terms of legal and administrative procedure.

ASIAN INFRASTRUCTURE INVESTMENT BANKThe Asian Infrastructure Investment Bank (AIIB), formed on October 24, 2014, is an International Financial Institution proposed by the Government of China, headquartered in Beijing, China.On January 16, 2016 the Board of Governors of the AIIB convened its inaugural meeting, declaring the Bank open for business. AIIB is regarded by some as a rival for the IMF, the World Bank and the Asian Development Bank regarded as dominated by developed countries like the United States.

INDRADHANUSH: REVAMPING PSU BANKSPSBs which have got predominant share of infrastructure financing have been sorely affected by global as well as domestic economic slowdown and have resulted in lower profitability, mainly due to provisioning for the restructured projects as well as for gross NPAs.The Govt has put in place a comprehensive framework for revamping PSBs known as Indradhanush where; ABCDEFG stands for Appointments, Bank Board Bureau, Capitalization, De-stressing of bank’s balance sheet, Empowerment, Framework of Accountability and Governance Reforms.

INTERNATIONAL FINANCIAL SERVICES CENTREInternational Financial Service Centre (IFSC) is a hub of financial services within a country. Usually these centres have low tax rates and flexible regulations.In 2007, Percy Mistry Committee Report had explored the idea of setting up an IFSC in India and India’s first IFSC, the Gujarat International Financial Tec-City (GIFT City) was launched by the Finance Minister on 10th April 2015.IFSC was set up in India under Section 18(1) of Special Economic Zones Act, 2005.Country’s first IFSC banking unit (IBU) was set up by Yes Bank.

MASALA BONDSMasala bond are the financial instruments through which Indian companies can raise money from overseas markets in the Indian rupee denomination.Masala bond is an attempt to increase the international status of rupee and is also a step toward full currency convertibility.In the Union-Budget 2017-18, the Finance Ministry has cut the withholding tax on interest income of Masala bonds from 20 per cent to 5 per cent.

PAYMENTS BANKS AND SMALL FINANCE BANKSPayments bank is a type of niche non-full service bank, which can receive deposits and provide remittances but cannot lend money.Small finance bank is a type of niche bank, which can provide banking services like accepting deposits and lending but mainly focusing on small businesses, small and marginal farmers,


small and micro industries.

PEER-TO-PEER LENDINGPeer-to-peer lending (P2P) is a method of debt financing that enables individuals to borrow and lend money - without the use of an official financial institution as an intermediary.The P2P companies, which manage and operate in their marketplaces, act as loan originators of loan but are not responsible for loan defaults.These companies bypass traditional institutional intermediaries and complex asset engineering such as loan term transformation, securitization, or loan collateralization etc.

PRADHAN MANTRI MUDRA YOJANAMicro Units Development Refinance Agency (MUDRA) Bank, was established to fund the unbanked Non Corporate Small Business Sector (NCSBS) with a corpus of Rs.20,000 crore, and credit guarantee corpus of Rs.3,000 crore.Initial products and schemes and the interventions have been named ‘Shishu (loans upto Rs. 50,000/-)’, ‘Kishor’ (loans above Rs. 50,000/- and upto Rs. 5 lakh ) and ‘Tarun’ (loans above Rs. 5 lakh and upto Rs. 10 lakh) to signify the stage of growth development and funding needs of the beneficiary micro unit / entrepreneur.

SCHEME FOR SUSTAINABLE STRUCTURING OF STRESSED ASSETS (S4A)‘Scheme for Sustainable Structuring of Stressed Assets’ (S4A) is introduced by RBI to tackle the ‘problem loans’ of large projects at a sufficiently early stage and protect the interest of lenders.The scheme is an optional framework under which the liabilities of struggling company’s debt will be bifurcated into sustainable and unsustainable portions.

THE FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)The Foreign Account Tax Compliance Act (FATCA) is a US regulation enacted on 18th March, 2010 and a new chapter in the US Internal Revenue Code.This legislation is a direct result of the focus by the United States on combating Offshore tax evasion and recouping much needed tax revenues. The ultimate goal of the legislation is for the United States to obtain information with respect to offshore accounts and investments beneficially owned by US taxpayers.The Government of India has concluded an Inter Governmental Agreement (IGA) with USA on 9th July, 2015 for implementation of FATCA

BASICS OF BLOCKCHAINBlockchain is a vast, global distributed ledger or database running on millions of devices and open to anyone, where not just information but anything of value – money, titles, deeds, music, art, scientific discoveries, intellectual property and even votes – can be moved and stored securely and privately. In the financial services industry, blockchain technology is already being implemented in innovative ways.Blockchain technology has the potential to cut down the infrastructural cost of banks by as much as $20 billion a year by 2022 by one estimate. This will be the technology which will enable banks to introduce new products and services, and this is all the more worth considering the fact that legacy organizations are increasingly facing attack from new entrants, who are unencumbered and will have to invest in disruptive technologies as


blockchain to prevent themselves from disruption.

DIGITAL INDIAIn order to transform the entire ecosystem of public services through the use of information technology, the Government of India has launched the Digital India programme with the vision to transform India into a digitally empowered society and knowledge economy.The Digital India programme is centered on three key vision areas i.e. Digital Infrastructure as a Core Utility to every Citizen; 2. Governance and service on demand and 3. Digital Empowerment of Citizens.

E-WALLETSAn E-wallet is a type of pre-paid account in which a user can store his/her money for any future online transaction. There are basically 3 types of E-wallets- open, semi-closed and closed.One can link their credit cards, debit cards and bank accounts and pay immediately with no hassle to enter the details each time.

FINTECHFinTech’ or Financial Technology describes a business that aims at providing financial services by making use of software and modern technology.

Financial technology companies consist of both startups and established financial and technology companies trying to replace or enhance the usage of financial services of banks/institutions.

FinTech represents technologies that are disrupting traditional financial services, including mobile payments, money transfers, loans, fund raising and asset management.

Account Aggregator (AA)

At present, persons holding financialassets, such as, savings bank deposits, fixed deposits, mutual funds, insurance policies, do not get a consolidated view of their financial asset holdings, especially when the entities fall under the purview of different financial sector regulators. Account Aggregators would fill this gap by collecting and providing the information of customers’ financial assets in a consolidated, organised and retrievable manner to the customers or any other person as per the instructions of the customer. The investors will be able to avail the service of an Account Aggregator purely at their option.The Reserve Bank will regulate and supervise the activity of account aggregation.

Asset Quality Review (AQR)The AQR is a risk-based assessment and is focused on those elements of individual bank’s balance sheets that are believed to be most risky or non-transparent. An asset quality review considers the key attributes of the different asset portfolios of a bank to evaluate “quality” of the bank’s assets.


Asset Price BubbleAsset price bubble is a state when the price of an asset goes up rapidly in a short span of time and is not supported by the fundamentals. This can happen in stocks, commodities or land and housing.

Bail-inA statutory government power to restructure the liabilities of a distressed financial institution by writing down and/ or converting to equity its unsecured debt.

BailoutA transfer of funds (or commitment to transfer funds) from public sources to a distressed firm. Examples include recapitalization, asset purchases, subsidized loans, and the provision of guarantees. A bailout primarily benefits creditors but may also benefit shareholders, managers, and employees. The business of the supported entity may be reorganized or merged with that of other entities.

Bank LevyA tax on banks based on their balance sheets (for example, assets, liabilities, or liabilities net of deposits). In a broader sense, it may include other forms of taxation—for example, taxes based on transactions or value added.

Bell Curve:Bell curve system of appraisal is a forced ranking system imposed on the employees by the management. Forced ranking has been defined as “a workforce management tool based on the premise that in order to develop and thrive, a company must identify its best and worst performers, the nurture the former and rehabilitate and/or discard the latter”. Bell curve system rates the entire workforce by comparing the performance of those engaged in similar activity and ranking them on the basis of the performance. The entire workforce is segregated as the top performers, medium performers and the poor performers. The percentile varies with the company policy. It could be the top 10%, middle 80%, and the bottom 10%.

BitcoinA digital currency known as bitcoin has gained prominence recently. The concept, experts say, allows anybody to generate or ‘mine’ Bitcoins with the help of hardware and software skills. The currency remains in the hard drive of computers and can be transferred to others at low cost. This digital currency is said to be acceptable on some of the websites as a medium of exchange as well. The currency is “mined” through a computer program. However, the program is such that currency generation would become difficult as more and more coins are mined.

BlockchainWhen people invest in Bitcoin, the money is going into the underlying technology - known as blockchain - not the payment instrument itself.The blockchain is essentially a giant record book of all Bitcoin transactions and what the internet is to email, blockchain is to Bitcoin.This is the decentralised network where every bitcoin transfer is verified, processed and written down. It has the potential to make economic interactions cheaper, faster and more


secure. The idea is to remove the need for middlemen like banks to vouch for facts, such as a person’s identity or the health of their finances — authentication processes that can be slow and costly, and vulnerable to corruption and cyber attacks.

Big DataBig data is a popular term used to describe the exponential growth and availability of data, both structured and unstructured.

Capital FlightWhen capital moves out of a country due to rise in country-specific risk, the situation is termed as capital flight. Capital flight results in a sharp fall in the exchange rate.

Cloud Computing:Cloud Computing has become ubiquitous concept (term / idea) in Information Technology arena and is widely agreed to be the key to future of IT. National Institute of Standards and Technology (NIST) has defined cloud computing as: ‘Cloud computing is a model for enabling convenient, on demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.”

Credit SpreadThe difference in yield between a benchmark debt security and another debt security that is comparable to the benchmark instrument in all respects except that it is of lower credit quality and, hence, typically returns a higher yield.

ContagionThe transmission of economic and financial disturbances across countries.

Crossover FundA collective investment vehicle that is not dedicated to certain assets but invests opportunistically across broader asset classes.

Contingent Claims Analysis (CCA)A methodology that combines balance sheet data and market prices of traded securities to assess the implicit value and volatility of assets, credit risk (default probabilities and credit spreads), and contingent liabilities of a firm or bank. The method has been extended to study entire economic sectors and sovereign states.

Crowd Funding:The practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.

Digital LockerDigital Locker is one of the key initiatives under the Digital India Programme. DigiLocker is a secure cloud based platform for storage, sharing and verification of documents & certificates.


Credit-to-GDP ratioA ratio that measures domestic credit to the private sector as a proportion of GDP. Domestic credit to the private sector refers to financial resources provided to the private sector, for example through loans, purchases of nonequity securities, trade credits, and other accounts receivable, that establish a claim for repayment. For some countries, these claims include credit to public enterprises.

Crony CapitalismCrony capitalism basically refers to conditions where some businesses and entrepreneurs are able to gain and accumulate wealth due to their proximity to the seat of power.

Differential LicensingDifferential licensing means separate licences for specific banking operations instead of a single universal one, licensing the banks to carry out specific businesses like Payment Banking, Corporate Banking, Infrastructure Banking and Deposit Banking etc.

DeleveragingThe reduction of the leverage ratio, or the percent of debt in the balance sheet, of a financial institution.

Digital DisruptionDigital Disruption is an innovation and applying technology for the growth of industries. The introduction of digital disruption offers a fundamentally better alternative to the present traditional approach for solving a customer problem, in a cheaper, quicker, accurate and customer driven technology playing a key enabling role. It is not evolutionary change, but radical in the way it changes functionability.

DisinflationA slowing rate of inflation is termed as disinflation. Inflation means the general rise in the price level in an economy. Disinflation is the deceleration in the pace of inflation or price rise. It is important to note that disinflation is different from deflation. Deflation is a state of fall in the general price level. So when policy makers talk about disinflation, it does not mean that the prices will fall. It simply means that prices will rise at a slower pace.

Digital SignatureA digital signature is an electronic signature that can be used to authenticate the identity of the sender of a message or the signer of a document, and to ensure that the original content of the message or document that has been sent is unchanged.

Differential LicensingDifferential licensing means separate licences for specific banking operations instead of a single universal one, licensing the banks to carry out specific businesses like Payment Banking, Corporate Banking, Infrastructure Banking and Deposit Banking etc.

DeleveragingThe reduction of the leverage ratio, or the percent of debt in the balance sheet, of a financial institution.


Dynamic ProvisioningA macro prudential tool that requires banks to build a cushion of generic provisions during upswings that can be used to cover rising specific provisions linked to loan delinquencies during downturns.

EurodollarsTime deposits denominated in U.S. Dollars at banks outside the United States and thus not under the jurisdiction of the Federal Reserve.

Exchange-Traded Fund (ETF)A collective investment vehicle traded on an exchange. ETFs may be attractive to investors because of their low costs and tax efficiency. ETFs started as passively managed funds following some market indices, but in 2008 the United States began to authorize actively managed ETFs

EEEEEE stands for exempt, exempt, exempt. Here, the first exempt means that your investment is allowed for a deduction. So, you don’t have to pay tax on part of the salary that equals the invested amount. Similarly, the second exempt implies that you don’t have to pay any tax on the returns earned during the accumulation called ‘equalisation levy’ on the online advertisement revenue of non-resident companies from B2B transactions. The Finance Bill, 2016, inserted a separate Chapter VIII in the bill titled ‘Equalisation Levy’ i.e., a tax leviable on consideration received or receivable for any specified service under the provisions.

EETEET is exempt, exempt, taxed. Your money at the stages of contribution and accumulation is exempt from tax, which is explained by EE, but at the time of withdrawal, you need to pay a tax on it, denoted by T. Since your accumulation— principal plus return—is taxed at the time of withdrawal, your returns from such instruments come down, depending on your tax slabs. For instance, if you fall in the 20% tax bracket and the rate of return on your investment is 8%, you will lose out 20% of that return and make only 6.4% on your investment.

ETEETE stands for exempt, taxed, exempt. If you have an instrument with this status, you would have to pay a tax only on the interest component. For example, a five year fixed deposit enjoys the ETE status, where the amount you invest qualifies for a deduction, the interest is taxed and at the time of maturity you needn’t pay tax on your principal.

Evergreen LoanA loan that does not require the principal amount to be paid off within a specified period of time. Evergreen loans are usually in the form of a short-term line of credit that is routinely renewed leaving the principal amount outstanding for the long term. Evergreen loans are a useful type of personal credit because the user does not need to reapply for a new loan every time they need to use it

Equalisation Levy:


The finance minister in his budget for 2016- 17 announced introduction of a new tax E-wallet has mainly two components, software and information. The software component stores personal information and provides security and encryption of the data. The information component is a database of details provided by the user which includes his/her name, shipping address, payment method, amount to be paid, credit or debit card details, etc.

E-Wallets/M-WalletsDefinition: E-wallet is a type of electronic card which is used for transactions made online through a computer or a smartphone. Its utility is same as a credit or debit card. An E-wallet needs to be linked with an individual’s bank account to make payments.

Financial DeepeningGrowing size of financial markets relative to economic activity, defined by the various functions those markets perform, including intermediation, price discovery, and hedging.

Frontier MarketsThe term was first used in the early 1990s. Technically, it is a set of countries that belong to the emerging market group but are in the early stages of economic growth. In other aspects, too, like political structure or capital markets, these countries are behind typical developing or emerging markets.

Fiscal stimulusDiscretionary fiscal policy actions (including revenue reductions and spending increases) adopted in response to the financial crisis.

Foreign Portfolio Investment (FPI)Securities and other financial assets passively held by foreign investors are known as Foreign Portfolio Investments (FPI). FPI does not provide the investor with direct ownership of financial assets, and thus no direct management of a company. This type of investment is relatively liquid, depending on the volatility of the market invested in.

Financial RepressionFinancial repression means that depositors are not adequately compensated for their savings. “The Indian banking system is afflicted by what might be called ‘double financial repression’. Financial repression on the asset side of the balance sheet is created by the statutory liquidity ratio (SLR) requirement that forces banks to hold government securities, and priority sector lending that forces resource deployment in less-than- fully efficient ways.

ForbearanceForbearance provides the borrower time to repay delinquent mortgage sums. Loan owners and loan insurers may be willing to negotiate forbearance options because the losses generated by property foreclosure typically fall on them. Loan servicers may be less willing to work with borrowers on forbearance relief because they do not bear as much financial risk.

Hard CurrencyHard currency is any globally traded currency that is expected to serve as a reliable and stable store of value, often including the U.S. Dollar, Euro, Swiss Franc, British Pound


Sterling, Japanese Yen, and, to a lesser extent, Canadian Dollar and Australian Dollar.

Hybrid Debt Capital InstrumentsIn this category falls a number of capital instruments, which combine certain characteristics of equity and certain characteristics of debt. Each has a particular feature, which can be considered to affect its quality as capital. Where these instruments have close similarities to equity, in particular when they are able to support losses on an ongoing basis without triggering liquidation, they may be included in Tier II capital.

Impossible TrinityImpossible trinity or trilemma in monetary policy means that a country cannot have of time. It is a statistical device which enables us to arrive at a single representative figure to measure the general level of industrial activity in the economy. Strictly speaking, the IIP is a short-term indicator of industrial growth till the actual results from Annual Survey of Industries(ASI) and National Accounts Statistics become available. This indicator is of paramount importance to the Government for policy planning purposes and is also being extensively used by various organizations including Industrial Associations, Research Institutes and Academicians.

Liquidity Coverage Ratio (LCR)LCR is to promote the short-term resilience of the liquidity risk profile of banks by ensuring that they have sufficient High Quality Liquidity Assets to survive a significant stress scenario lasting 30 calendar days.

MASALA BONDMasala bonds are Indian rupee denominated bonds issued in offshore capital markets. These are rupee denominated bonds issued to offshore investors settled in dollars and, therefore, the currency risk resides with investors. The investor set is more broad-based than just FIIs (foreign institutional investors), as these instruments can usually be sold to other investors who prefer the fact that these are listed With Masala Bond, Indian corporates will have more option to blend their debt portfolio to optimize the liability and minimize the cost. Further, it can be a launch pad to sell the strength of rupee to the overseas investors.

MalfeasanceMalfeasance is an intentional conduct that is wrongful or unlawful, especially by officials or public employees. Malfeasance is at a higher level of wrongdoing than nonfeasance (failure to act where there was a duty to act) or misfeasance (conduct that is lawful but inappropriate).

Mis-sellingMis-selling is an unethical practices of salesperson, misrepresenting or misleading an investor about the characteristics of a product or service. In an effort to make a sale to a potential customer, a financial products salesperson could suppress certain information or describe a financial product as something the investor urgently needs, even though sound financial judgment would come to the opposite conclusion.

Marginal Standing Facility (MSF)RBI first announced MSF in the annual monetary policy review for the financial year 2011- 12; the concept came into existence on 9 May 2011 as one of the tools of monetary policy. Under


the facility, all scheduled commercial banks can borrow overnight from the central bank up to 2.5% of their net demand and time liabilities outstanding at the end of the second preceding fortnight. The facility is available for banks on all working days between 7.00 pm and 7.30 pm , except Saturdays. The facility was introduced in order to contain volatility in the inter-bank overnight market.

Monetary Transmission Measures:It refers to the process through which Central Bank’s (RBI) , monetary policy decisions affect economy in general and price level in particular. The objective of Monetary transmission can be achieved by Central Bank through a host of measures. These could include altering the money supply, credit availability, asset prices, influencing exchange rates and finally by managing expectations. The central bank uses the money supply channel by increasing/decreasing the cash reserve ratio(CRR), Statutory Liquidity Ratio(SLR) and thereby reducing/ increasing the availability of cheap credit. The central bank also influences prices and output by increasing its lending and borrowing rates (repo and reverse repo, respectively).

Momentum InvestingMomentum investing basically means buying stocks that have been rising in the recent times and selling under performers. The basic idea behind following this strategy is that stocks that have gained recently will continue to do so in the near term, while stocks that have underperformed, will continue to lag.

International Financial InstitutionsThe International Financial Institutions (IFIs) are financial institutions that have been established (or chartered) by more than one country, and hence are subjects of international law. Their owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders e.g. European Investment Bank.

National Stable Funding Ratio (NSFR)NSFR is defined as the amount of available stable funding relative to the amount of required stable funding. This ratio should be equal to at least 100% on an on-going basis. “Available stable funding” is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered by the NSFR, which extends to one year. The amount of such stable funding required of a specific institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution as well as those of its off-balance sheet (OBS) exposures.

Niche BanksBanks that cater to and serve the needs of a certain demographic segment of the population. Niche banks typically target a specific market or type of customer, and tailor a bank’s advertising, product mix and operations to this target market’s preferences.

Non Inflationary Rate of GrowthNon inflationary rate of growth is the maximum rate of growth that the economy can achieve without fanning inflationary pressures.


Near Field Communication (NFC)Near Field Communication (NFC) is a set of ideas and technology that enables smart phones and other devices to establish radio communication with each other by touching them together or bringing them into proximity, typically a distance of 10 cm (3.9 inch) or less. Each full NFC device can work in 3 modes : NFC target (acting like a credential), NFC initiator (acting as a reader) and NFC (peer to peer).

Net Neutrality:Net neutrality refers to the principle that all traffic on the internet should be treated equally. The internet is delivered by broadband providers; they can use their infrastructure to set particular terms for access of internet applications and content (websites, services, protocols). These access terms are discussed under the heading of “net neutrality” (NN), generating a debate that has received a great deal of attention from all the stakeholders involved and which is likely to influence the development of the sector in the years to come.

Narrow BankingNarrow banking is called a safe banking, in the sense of engagement of funds and not in activity. Narrow Banking involves mobilizing the large part of the deposits in Risk Free assets such as Government Securities. The maturities of the liabilities match the assets and there is no possibility of the Asset Liability Mismatch.

NITI Aayog:NITI Aayog (National Institution for Transforming India), is a replacement for the Planning Commission. NITI Aayog is established after extensive consultation across the spectrum of stakeholders, including State governments, domain experts and relevant institutions. It will provide a critical directional and strategic input into the development process.

OTPA one-time password (OTP) is an automatically generated numeric or alphanumeric string of characters that authenticates the user for a single transaction or session.

Offshore Banking Unit (OBU)OBU is the branch of an Indian bank located in a special economic zone (SEZ), with a special set of rules aimed at facilitating exports from the region. As law define it, it’s a “deemed foreign branch” of the parent bank situated within India, and it undertakes international banking business involving foreign currency denominated assets and liabilities.

Over-the-counter (OTC)In the case of financial securities, trading directly between two parties rather than on a financial exchange.

Offshore MarketA financial market in a country or jurisdiction in which financial services are provided to non-residents on a scale that is not commensurate with the size and the financing of the domestic economy


On-tap licensingOn-tap licensing allows interested entities can apply to the RBI for opening a bank at any point in time. On-tap licensing means that the RBI window for granting banking licences will be open throughout the year.

Open Market OperationsOpen Market Operations Open Market Operations (OMOs) are the market operations conducted by Reserve Bank of India (RBI) by way of sale/ purchase of Government securities to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis. When RBI feels there is excess liquidity in the market, it resorts to sale of securities thereby sucking out the rupee liquidity. Similarly, when the liquidity conditions are tight, the RBI will buy securities from the market, thereby releasing liquidity into the market.

Past DueA loan payment that has not been made as of its due date is known as past due. A borrower who is past due may be subject to late fees, unless the borrower is still within a grace period. Failure to repay a loan on time could have negative implications for the borrower’s credit status or cause the loan terms to be permanently adjusted.

Phablets—A mixture of a Smartphone and tablet

Purchasing Managers’ Indices (PMI)PMI are economic indicators derived from monthly surveys of private sector companies. The two principal producers of PMIs are Markit Group, which conducts PMIs for over 30 countries worldwide, and the Institute for Supply Management (ISM), which conducts PMIs for the UnitedStates.

Quick Response Code For Payments(QR Code)It is a code that is machine-readable. It is usually in a black and white matrix and can be read by a Smartphone. The QR code has details of the product attached to it. Depending on the use, details in the QR code will differ. So, if you intend to buy a mobile phone worth Rs.5,000 from an electronic store, the QR code generated will have details such as the product barcode, merchant’s details, product cost, and so on. Using this QR code, you can then make the payment.

Real Effective Exchange Rate (REER)An exchange rate index calculated as a weighted average of bilateral exchange rates with a country’s trading partners and adjusted for inflation differentials.

Regulatory ArbitrageReducing regulatory requirements (for instance, capital and liquidity requirements) by taking advantage of regulatory differences across countries, types of financial institutions, or products and by exploiting differences between economic risk and risk as measured by regulatory guidelines.


Ring-FencingMeasures imposed by prudential supervisors that aim to protect the domestic assets of a bank so that they can be seized and liquidated under local law in case of failure of the whole, or other entities of the banking group.

RU-Pay Card:“RuPay”, the word itself has a sense of nationality in it. “RuPay” is the coinage of two terms Rupee and Payment. The RuPay Card, India’s home grown plastic money and India’s answer to Visa and MasterCard.RuPay, a card payment scheme launched by the National Payments Corporation of India (NPCI), has been conceived to fulfill RBI’s vision to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments.

Real Estate Investment TrustREIT is a essentially a pooling vehicle which allows investors to participate in small amounts into a securitized real estate-linked investment. On the one hand, these securities help to make investing in real estate more accessible, long term and income oriented. On the other hand, they also help to build an efficient secondary market for developers to exit projects. REITs usually will invest in commercial properties and use rental income to distribute as dividend to unit holders. Typically, REITs are used to invest in completed property for a stable income stream and not property which is under construction.

Real AssetReal asset is defined as the asset that is tangible, such as precious metals, housing property, agricultural and other commodities. Financial assets on the other hand are intangible assets, such as shares, bonds, fixed deposits and all kinds of derivative instruments which derive their value from contractual claims.

Red Herring Prospectus ( RHP)RHP is the offer document of the issuer company, and which it has to mandatorily file with SEBI. This document contains the objectives for which the company is coming to the market to raise funds. It also has other details of the issue, such as number of shares offered and their face value. The RHP, however, does provide information on price band at which shares will be allotted. The final or cut-off price per share is generally decided based on a book building process.

The RHP also contains other important information such as nature of business, industry overview, financial information, risk factors, litigations (if any), legal information, financial indebtedness, andso on.

Seigniorage:The profit made by a government from the printing of money, literally the face value of the money minus the cost of raw materials & printing.Seigniorage is the revenue, governments derive because the cost of minting coins or printing


paper money is less than the market value of the money.The basic idea of seigniorage is that whenever the cost of producing the money used in circulation is more than the intrinsic value of the money, the government loses money on seigniorage, while if the market value is higher than the cost of producing the money, the government makes money on seigniorage.

Shadow Banking:The term ’shadow banking system‘ was first used in 2007, and gained popularity during and after the 2008 financial crisis, as it highlighted the bank-like functions performed by entities outside the regular banking system.The more comprehensive definition, as adopted by the Financial Stability Board (FSB), i.e., ‘credit intermediation involving entities and activities (fully or partially) outside the regular banking system’ has been globally accepted.

S4AWhat is it?The Sustainable Structuring of Stressed Assets (S4A) is RBI’s latest attempt to try and chip away at the mountain of stressed loans smothering Indian banks. The scheme tries to strike a compromise between banks with problem accounts and corporate defaulters of the non-wilful variety, by converting a portion of large loan accounts into equity shares.

StagflationBasically refers to a situation when an economy stagnates and also has high inflation, a situation where inflation and unemployment both are at higher level.

Sovereign RatingA sovereign rating basically reflects the risk of investing in a country, with AAA lowest. There are various kinds of rating: short term, long term, local currency, foreign currency and so on. Rating agencies apply different models to gauge the potential risk level in the country. S&P, for example, uses indicators such as political risk, economic growth prospects, liquidity situation, government finances and monetary flexibility to rate a country.

Sovereign Wealth Fund (SWF)A government-owned fund that invests globally in real and financial assets or in alternative investments such as private equity or hedge funds. Most SWFs are funded by revenues from commodity exports or from foreign exchange reserves held by the central bank.

Stress TestingStress testing is used to evaluate a bank’s potential vulnerability to certain unlikely but plausible events or movements in financial variables. The vulnerability is usually measured with reference to the bank’s profitability and /or capital adequacy.

Stabilzation FundStabilization fund is constituted basically to set aside any windfall in revenue arising from sale of assets or natural resources, which can be used when the cycle turns. This fund can be used to minimize the effect on government expenditure when revenue gets affected due to lower prices of natural resources.


Totalization Agreement:Totalization agreements are a means of protecting the benefit rights of workers who divide their working career between two or more countries. They also help to eliminate situations in which workers or employers are required to pay Social Security taxes to two countries on the same earnings. In addition, totalization agreements remove legal obstacles that prevent a person who has earned benefits in one country from receiving those benefits while residing in the other country.

TED SpreadThe difference between the three month London interbank offered rate (LIBOR) and the three month U.S. Treasury bill interest rate.

Tobin TaxTobin Tax is Tax on short-term cross border currency transactions. It is levied to discourage short term cash flows and help stabilise exchange rates by curbing speculation.

TaperingTapering refers to the reduction in the quantum of bond buying programme by a central bank. This is expected to affect the availability of money.

Twinternship“An internship where the student’s mission is to promote the company and its brands using social media such as Twitter and Facebook.”

UDAY (Ujwal DISCOM Assurance Yojana)UDAY is a path breaking reform for realizing the Hon’ble Prime Minister’s vision of affordable and accessible 24x7 Power for All. UDAY provides for the financial turnaround and revival of Power Distribution companies (DISCOMs), and importantly also ensures a sustainable permanent solution to the problem.

Unified Payments Interface System (UPI)Unified Payments Interface System (UPI) is one of the most ambitious project of The National Payments Corp. of India Ltd’s (NPCI). It is a next generation payment system set to change the way retail payments are made in India. This system will allow for a one-click, two-factors. The UPI system will allow a customer with a bank account to transfer money and make payments almost as easily as she sends a text message. It will run on the Immediate Payment Service (IMPS) platform.

USSD (Unstructured Supplementary Service Data)It is a Global System for Mobile (GSM) communication technology that is used to send text between a mobile phone and an application program in the network. Applications may include prepaid roaming or mobile chatting. USSD is similar to Short Messaging Service (SMS), but,unlike SMS, USSD transactions occur during the session only. With SMS, message scan be sent to a mobile phone and stored for several days if the phone is not activated or within range.


Unconventional Monetary PolicyA central bank policy, such as forward guidance on interest rates, long term provision of liquidity to banks, and large scale asset purchases that is not part of the conventional central bank toolkit.

VUCA World:VUCA is an acronym used to describe or reflect onvolatility, uncertainty, complexity and ambiguity of general conditions and situations. The common usage of the term VUCA began in the 1990s and derives from military vocabulary and has been subsequently used in emerging ideas.

Virtual CurrencyAccording to the Reserve Bank of India (RBI), virtual currency can be defined as a type of unregulated digital money which is issued and usually controlled by its developers and used and accepted among the members of a specific virtual community. It also provides flexibility in terms of business model and business strategy for the virtual community.


DIFFERENTIATED BANKS IN INDIA

Under the recommendations of Dr. Nachiket Mor committee new step for the financial inclusion has been taken in the country. As per the recommendations RBI set up the guidelines for the new categories of banks i.e. Payment Banks and Small Finance Banks.Payments Banks in IndiaOn the recommendations of Dr. Nachiket Mor committee RBI (Reserve Bank of India) grants license for commencement of banking business under section 22(1) of Banking Regulation Act 1949 and registered as a private company under Companies Act. It is a new model of banks which is conceptualized by the RBI (Reserve Bank of India) The main objective of setting up of payment banks for the purpose of financial inclusion by providing:• Small saving account• Payment servicesFeatures of payment banks• Non finance company entities and existing non bank prepaid instruments issuer may apply for the payments bank• Minimum capital required for the payment banks is Rs. 100 crore• Foreign shareholding is allowed to these banks but as per the regulations of FDI ( Foreign Direct Investment)• Payment Banks cannot provide lending services but allowed to distribute financial product such as mutual funds and insurance products.• The bank must use the term payment bank in its name to differentiate it from other banks.• 25% of the bank branches of the payment banks must be in unbanked rural areas.Services provided by the Payment Banks• Acceptance of deposits (initially restricted to Rs 100,000)• Payment Banks can provide services like ATM, net banking, debit cards and net banking• Current and saving accounts can be operated through this bank. In 2015, RBI (Reserve Bank of India) grants license to the 11 entities out of 41 entities who applied for the licenseFollowing are the 11 entities which are granted license1. Aditya Birla Nuvo2. Airtel M Commerce Services3. Cholamandalam Distribution Services4. Department of Post5. FINO Pay Tech6. National Securities Depository7. Reliance Industries8. Sun Pharmaceuticals9. Paytm10. Tech Mahindra11. Vodafone M PesaOut of above three have surrendered their licenses i.e. Cholamandalam Distribution Services, Sun Pharmaceuticals and Tech Mahindra. Airtel becomes the first to launched live payments banks in IndiaSmall Finance Banks in IndiaSmall Finance Banks are the banks which are globally known as niche bank. It is registered as a public limited company under the Companies Act 2013. Small Finance banks are licensed under section 22 of the Banking Regulations 1949. The main aim of setting up of


these banks is to provide financial inclusion to those sections of economy not being served by the banks.Features of Small Finance Banks in India• Existing NBFCs ( Non Banking Finance Companies), Micro-finance Companies and Local Area Banks may apply for the small finance banks in India• Small Finance Banks are established as public limited company in private sector• Minimum paid up capital for the small finance banks is Rs 100 crore• Small Finance Banks are required to establish its 25% branches in unbanked areas• These entities must add the term small finance bank with its name to differentiate it from other banks• Foreign Shareholding is allowed as per the FDI (Foreign Direct Investment) policyServices provided by Small Finance Banks• Small Finance Banks can provide basic banking activities such as deposit and lending of funds ( There is no such restriction on the amount of deposit )• Small Finance Banks can also undertake non-risk sharing simple financial services such as distribution of mutual funds, insurance products and pension products• In 2015 RBI grants license to 10 entities through which they have to convert into Small Finance Banks within one year.Following are the entities1. Ujjavan2. Janakakshmi3. Equita4. AU Financiers5. Capital LAB6. Disha7. ESAF8. RGVN9. Suryoday10. Utkarsh


BASEL NORMS

Basel Norms are the set of recommendations for regulating banking industry in world. Basel Committee on Banking Supervision issued Basel Accords. Basel committee is named after the Basel city in Switzerland where Bank for International Settlements headquartered• Recommendations framed by the Basel Committee but by the National law• Basel committee consists of representatives of central bank and regulatory authority of ten member countries.Basel Committee has given three Basel Norms named Basel I, Basel II and Basel III:1. Basel IBasel I is also known as 1998 Basel Accords. As in 1998 Basel Committee on Banking Supervision published a set of minimum capital requirement of banks with a goal of minimizing capital risk. The banks which are operated internationally are required to maintain a minimum amount of 8% on risk weighted assets as per the recommendations of Basel Committee on Banking Supervision. Basel I basically focused on credit risk and appropriate risk weighting of assets.India adopted Basel I recommendations in 19912. Basel IIIt is the second international banking regulatory accord. Basel II is the expanded rules for minimum capital requirement established under Basel Committee on Banking Supervision.Basel II accord based on the three pillars: Minimum capital requirement, supervisory review and market discipline.• Minimum Capital Requirement: it is the first pillar of Basel I accord. Under this regulatory capital is maintained which is calculated for the major components of risk that a bank faces. The risk involved is credit risk, operational risk and market risk.• Supervisory View: It is the second pillar of Basel II accord. It provides framework for national regulatory bodies to deal with various types of risk such as systematic risk, liquidity risk and legal risk.• Market Discipline: It provides various disclosure requirement for the bank such as risk exposures, risk assessment process and capital adequacy. In India Basel II norms are implemented by Reserve Bank of India on 31 March 2009.3. Basel IIIIn late 2009 the first version of Basel accord is published by Basel Committee on Banking Supervision. It aims to promote a more flexible banking system by focusing on four vital banking parameters viz. capital, leverage, funding and liquidity.Purpose:• To improve banking sector’s ability to deal with financial stress• To improve risk management• To strengthen the bank’s transparencyIn India Reserve Bank of India has extended the timeline for full implementation of the Basel III capital regulations by the year to 31 March 2019


SUMMARY CHART OF VARIOUS FINANCIAL RATIOSOPERATIONAL EFFICIENCY OF MANAGEMENT

Rate How calculated

Interpretation

Fixed Assets turnover (no. of times)

Sales / Fixed Assets

Ration determines as to how the fixed assets or the capacity, have been utilized. A higher or increasing ratio indicates better use of the assets and a lower ratio reflects that the use should be improved.

Capital turnover ratio (no. of times)

Sales / Capital employed (i.e. long term funds)

Ratio explains as to how the funds raised on long term basis including net worth have been used. A higher or increasing ratio indicates better use.

Total assets turnover OR Capital intensity ratio (no. of times)

Sales / total tangible assets

Ratio indicates as to how the tangible assets have been used. A higher ratio is reflection of better utilization of assets that leads to reduction in cost and increase in profits.

Current asset turnover (no. of times)

Sales / current assets

Ratio indicates the use patter of the assets. A higher or increasing ratio is indicative of better use of such assets.

Stock turnover ratio (no. of times)

Sales / Stocks Ratio indicates as to how the stocks have been used. An increasing and higher ratio indicates better use of the stocks.

Debtor Turnover ratio (no. of times)

Sales / Debtors (including book debts / receivables)

Ratio indicates the efficiency of realization of book debts after sale. A higher and increasing ratio indicates improvement.

Creditor turnover ratio

Purchases / creditors

Ratio indicates the efficiency of the firm to pay for the goods purchased on credit or availability of credit to the firm.

EARNING RATIOSGross profit ratio (%age)

Gross profit / sales

Explains the operating efficiency of the business. An increasing and higher ratio indicates improving and comfortable position.

Operating profit ratio (%age)

Operating profit / sales

It determines the operating efficiency of the firm. A higher and increasing ratio is reflective of improvement and sound position.

Net profit ratio (%age) (also

Net profit / sales

The ratio reflects the position of profits earned on sales. Increasing and higher ratio is indicative of better


called Net profit margin)

performance.

Return on equity (%)

Net profit after tax / tangible net worth

It reflects the annual payout to the investors / promoter on the money they have invested in the business venture. Increasing or higher ratio is a sign of improvement and comfort. The payment of dividend or drawings by the promoters are also linked to the return on equity while deciding as to how much to pay. The promoters can also make comparison of this earning with the opportunity earning, had they invested the funds elsewhere.

Return on investment (%)

Net pfofit after tax / (tangible net worth + long term liabilities)

The ratio explains the earning which the promoters' funds and funds borrowed on a long term basis could earn. Increasing and higher ratio is considered improvement. The ratio can also be calculated as NPAT / tangible assets, to see return from assets.

EXPENSES RATIOSDirect operating ration (%age)

Cost of goods sold / sales

It reflects the break up of cost which the firm is incurring on raw material, other inputs and other direct cost incurred by the firm. A lower ratio would lead to higher operating and gross profits.

EFFICIENCY OF FINANCIAL MANAGEMENTDebt equity ratio (cover)

Long term outside liabilities / net worth

Ratio indicates the owner's stake in the business compared with the outside long term borrowing. A lower and declining ratio indicates, better and improving position. Bench mark ratio is around 2:1

Total debit equity ratio

Total outside liabilities / net worth

Ratio indicates the level of promoter's contribution to the business compared to outstanding liabilities. A higher and increasing ratio reflects deterioration and uncomfortable position.

Net working capital

Long term sources minus long term uses

Ratio explains as to what extent the surplus is available from long term to finance the working capital. Higher the ratio, the better it is. As per benchmarks, the net working capital should be around 25% of the current assets.

Current ratio Current assets / current liabilities

Ratio determines the capability to meet the short term liabilities, when they arise for payment out of available short term resources. A higher ratio indicates comfortable position. An increasing ratio indicates improvement. Benchmark ratio is around 1.33:1

Acid test ratio OR Quick

Quick assets / current

Ratio indicates the capacity to meet the pressing liabilities. A higher and increasing ratio reflects comfortable position.


ratio liabilities Quick ratio normally is less than 1.Stock to current assets ratio

Stocks / current assets

Ratio reflects as to what is the composition of assets in the current assets. A higher ratio would mean a lower acid test ratio and some delay in converting the assets into cash.

Debtor velocity ratio (months)

Sales / average book debts

Ratio reflects the level of credit, the firm has to extend to buyers (in months or days). Lower or the reducing level reflects efficiency of debt collection. Increasing level means increasing working capital requirement.

Creditor velocity (months)

Purchases / average creditors

Ratio reflects the level of credit available to the firm on purchases made on credit.

Raw material holding (months)

Raw material / raw material consumed X 12

Ratio reflects the level of raw material being kept by the firm for day to day working. Higher level indicates inefficiency leading to increasing working capital need. It increases the cost of operations and reduces the profit.

Stock in process holding (months)

Stock in process / cost of production X 12

Ratio reflects the level of stock in process in day to day working. Lower level indicates efficiency leading to reduced working capital requirement. It helps in increase in profits because of cost saving.

Finished goods holding (months)

Finished goods / cost of sales X 12

Ratio reflects the level of finished goods kept for day to day working. Lower level indicates efficiency leading to reduced working capital needs and increase in profits due to lower operating cost.

EFFICIENCY OF DEBT – SERVICE MANAGEMENTDebt service coverage ratio

(Profits + interest on loans + depreciation) / (interest + installment of loans)

Ratio reflects the capability of the firm to service its long term debt i.e. to pay the interest and instalment of its long term loans / liabilities. A higher ratio is indicative comfortable position. Ideal ratio is considered at 2.

Interest cover ratio

Profit before interest and tax / annual interest

Ratio determines the interest paying capacity of the firm.

MARKET RATIOEarning per share (EPS - %)

Net profit after tax / no. of equity shares

Ratio reflects the profit available per share on the basis of which either dividend would be available to the shareholder or value of his investment would increase in the form of transfer of profit to reserves. In case of listed companies, the market price of their share is likely to improve with higher earning per


share.Dividend payout ratio (DPR)

Dividend per share / earning per share

It indicate the amount of earnings paid out to the shareholders in the form of dividend. The higher the ratio, the greater could be the amount of annual payoff.

Book value per sahre

Tangible net worth / no. of shares

It is an indication of the value of the share. It is an accounting indicator only and the share may be sold at a price higher than the book value or at a lower price depending upon other considerations.

Price earning ratio (P / E)

Market price of the share / Earning per share

It reflects the position of earning of a company vis-a-vis the market capitalization. PE mutilples are important part of share valuation methodology. A higher ratio means that the market has the confidence in the growth and future prospects of the firm.
