Important Banking
Awareness Questions :
Today I am sharing most commonly asked questions and answers in bank interviews.I tried to cover all important parameters and hope that you will find it useful.You can also asked any queries regarding banking industries and banking careers to me .Best of luck for your exams and interviews.
1. MICR code consists of
how many digits?
Ans: 9 digits. (First
three digits denotes city,b next three digits representing the bank and the
last three digits representing the bank branch)
2. What is the minimum limit
in RTGS system?
Ans: 2 lakhs (there is no
upper limit in RTGS)
3. What is full form of
CTS?
Ans: Cheque Truncation
System
4. Under which service,
customers may access their bank account and perform basic transactions from any
of the member branch offices.
Ans: Core Banking
Solution (CBS)
5. Exchange of cash flow
in different currency is known as:
Ans: Currency Swap
6. Assets or loans which
stop performing after 90 days is known as:
Ans: Non Performing Asset
7. Who controls the
Monetary Policy in India?
Ans: RBI
8. Which card is issued
by NPCI (National Payments Corporation of India)?
Ans: RuPay Card
9. Definition of Current
Account deficit:
Ans: A measurement of a
country's trade in which the value of goods and services it imports exceeds the
value of goods and services it exports.
10. Full form IFSC –
Ans: Indian Financial
System Code
11. Commercial paper can
be issued for a maximum period of:
Ans: 1 year.
12. The Mutual funds in
India follow accounting standards laid by:
Ans: SEBI (Securities and
Exchange Board of India)
13. Minimum amount for
Certificate of Deposit has been fixed at:
Ans: Rs. 1 Lakh
14. AML is a term mainly
used in the financial and legal industries. Expand the term AML:
Ans: Anti Money
Laundering
15. PIN is a number
allocated to an individual and used to validate electronic transactions.
Expand.PIN:
Ans: Personal
Identification Number
16. What is Repo rate?
Ans: It is the rate at
which RBI lends money to the commercial banks.
17. What is Stale Cheque?
Ans: A cheque which is
presented to a bank after 3 months from date of issue is considered as stale
cheque and will often not be honored for cash or deposit at a bank.
18. What is
Bancassurance?
Ans: The selling of life
assurance and other insurance products and services by banking institutions.
19. The objective of KYC
guidelines is to prevent banks from being used, intentionally or
unintentionally, by criminal elements for money laundering or terrorist
financing activities. What is the full form of KYC?
Ans: Know Your Customer
20. Know Your Customer
(KYC) guidelines are issued under:
Ans: Section 35A of the
Banking Regulation Act, 1949
21. In BSBDA (Basic
Savings Bank Deposit Account) the credits in a financial year does not exceed
rupees:
Ans: Rs. 1 lakh
22. In BSBDA (Basic
Savings Bank Deposit Account) the balance at any point of time does not exceed
rupees:
Ans: Rs. 50,000
23. In BSBDA (Basic
Savings Bank Deposit Account) the withdrawals and transfers in a month does not
exceed rupees:
Ans: Rs. 10,000
24. At which rate RBI
give loans to commercial banks?
Ans: Repo rate
25. Full form of CASA:
Ans: Current Account
Saving Account
26. In what denominations
Commercial Paper (CP) can be issued?
Ans: Rs. 5 lakh
27. What is the minimum
denomination of Treasury bills to issue in India?
Ans: Rs. 25,000
28. Who cannot issue
Certificate of Deposit (CD)?
Ans: Regional Rural Banks
(RRBs) and Local Area Banks (LABs)
29. Expand ASBA:
Ans: Application
Supported by Blocked Amount
30. Depositor Education
and Awareness Fund (DEAF) is maintained with:
Ans: RBI
31. Cash Reserve Ratio
(CRR) is the amount of funds that the banks have to keep with:
Ans: Central Bank (RBI)
32. What is the maximum
amount per transaction NEFT limit for cash-based remittances to Nepal?
Ans: Rs. 50,000
33. What does CAR stands for?
Ans: Capital Adequacy
Ratio
34. IFSC code consists of
_____ alpha numeric code.
Ans: 11 digits
(The IFSC is an 11 digit
alpha numeric code, with the first four digits identifying the bank, fifth is
numeric (kept 0) and the last six digits represent the bank branch.)
35. When money is lent or
borrowed for one day or on overnight basis it is known as:
Ans: Call Money
36. When money is lent or
borrowed for between 2 days and 14 days it is known as:
Ans: Notice money
37. When money is lent or
borrowed for a period of more than 14 days, it is known as:
Ans: Term money
38. Treasury Bills and
Certificate of Deposit are considered as the ____instruments.
Ans: negotiable money
market
39. Commercial Paper (CP)
is an unsecured money market instrument issued in the form of a _____.
Ans: Promissory note.
40. What is the upper
limit in Public Provident Fund?
Ans: Rs. 1.5 lakhs
41. As per RBI
guidelines, with effect from April 1, 2012, the validity period of Cheques,
Demand Drafts, Pay Orders and Banker's Cheques is _____.
Ans: 3 months
42. What is the time
limit for an asset or loan to be declared as Non-Performing Asset?
Ans: 90 days
43. Deposit Insurance and
Credit Guarantee Corporation (DICGC) does not cover:
Ans: Primary co-operative
societies
44. RBI measure to liquidate
the market:
Ans: Repo rate.
45. Full form of EFT:
Ans: Electronic Fund
Transfer
46. Fastest mode of
transaction:
Ans: RTGS
47. Alphanumeric code on
cheque is known as:
Ans: Indian Financial
System Code (IFSC)
48. Bank pays interest on
savings account?
Ans: Daily Basis
49. What is the loan
limit for education under priority sector for studies abroad?
Ans: Rs. 20 lakh
(Loans to individuals for
educational purposes including vocational courses upto Rs.10 lakh for studies
in India and Rs. 20 lakh for studies abroad are included under priority
sector.)
50. RuPay Card is an
Indian version of credit/debit card is launched by which organization:
Ans: NPCI (National
Payments Corporation of India)
51. Fixed Deposit
(FD)Account may be opened for a minimum period of:
Ans: 7 days
52. What is the minimum
amount required to open a Fixed Deposit (FD)?
Ans: Rs.1000
53. The Banks has
converted all ‘no - frills' accounts’ into:
Ans: Basic Savings Bank
Deposit Accounts
54. 'Pradhan Mantri Jan
Dhan Yojana' is a Scheme for:
Ans: Financial inclusion
55. How much overdraft
facility to be provided in 'Pradhan Mantri Jan Dhan Yojana' scheme?
Ans: Rs. 5,000
56. In CBS, C stands for:
Ans: Core
57. In CRAR, A stands
for:
Ans: Assets (Capital to
Risk Weighted Assets Ratio)
58. IMPS - Immediate
Payment Service is an interbank electronic instant mobile money transfer
service through mobile phones in India, the facility is provided by:
Ans: NPCI (National
Payment Corporation of India)
59. The Central Bank of
India has adopted new measure of inflation:
Ans: Consumer Price Index
(CPI)
60. When a cheque is torn
into two or more pieces and presented for payment, such a cheque is called:
Ans: mutilated cheque
61. How much fee charged
to file a complaint under Banking Ombudsman?
Ans: Banking Ombudsman
does not charge any fee
62. Who is the appellate
authority in Banking Ombusdsman?
Ans: Deputy Governor of
RBI 63. If any customer is not satisfied by the decision of Banking Ombudsman,
customer can appeal against the award before the appellate authority within how
many days from the date of receipt?
Ans 30 days
63. ATMs or Cash
Dispensing machine which are owned and operated by Non-Banking Financial
Companies are called:
Ans: White Label ATMs.
64. RBI gave in-principle
for Banking license to:
Ans: IDFC and Bandhan
65. Minimum capital
requirement for new banks in private sector is:
Ans: Rs. 500 crore
66. A Non-Banking
Financial Company (NBFC) is a company registered under the:
Ans: Companies Act, 1956
67. Minimum capital
requirement for Non-Banking Financial Company (NBFC) is:
Ans: Rs. 500 crore
68. The NBFCs are allowed
to accept/renew public deposits for a minimum period of:
Ans: 12 months ( and
maximum period of 60 months)
69. A NBFCs cannot offer
interest rates higher than the ceiling rate prescribed by RBI? What is the
present ceiling?
Ans: 12.5 per cent per
annum
70. Minimum capital
requirement for Foreign banks that want to set up operations in India is:
Ans: Rs. 500 crore
71. What is the minimum
paid-up capital requirement of both small banks and payments banks in India?
Ans: Rs. 100 crore
72. Full form of NEFT:
National Electronic Funds Transfer
RTGS: Real Time Gross
Settlement.