Bank Promotion Exam (Scale I to III) - Indian Overseas Bank Circular Based Super Hot 56 Questions - August 2021

August 5, 2021

Bank Promotion Exam (Scale I to III) - Indian Overseas Bank Circular Based Super Hot 56 Questions - August 2021

1. RBI has enhanced Contactless card transactions without the
requirement of Additional Factor of Authentication (AFA) from January
1st 2021 from Rs. 2000 to ?
a. Rs. 3000/-
b. Rs. 5000/-
c. Rs. 3000 in Tier I & II cities and Rs.5000 in Tier III to VI cities.
d. Rs. 10000/-

2. Recently RBI has permitted Scheduled RRBs to Participate in
Liquidity Adjustment Facility (LAF) and Marginal Standing Facility
(MSF) for better liquidity management. Which of the following is an
eligibility criteria for a RRB to avail these facilities?
a. Implemented Core Banking Solution (CBS).
b. Minimum CRAR of 9%
c. Compliant with the terms and conditions for availing LAF and
MSF issued by Financial Markets Operations Department (FMOD),
Reserve Bank of India.
d. All the above

3. As per latest RBI guidelines, in bonafide cases, AD banks can regularize cases of dispatch of shipping documents by the exporter direct to the consignee or his agent resident in the country of the final destination of goods, up to
a. USD 1 million
b. USD 10 million
c. No maximum cap
d. USD 5 million

4. As per FEMA guidelines, a status holder exporter can Self-write-off export bill outstanding upto a limit of _______% of the total export proceeds realized during the calendar year preceding the year in which the write-off is being done.
a. 5%
b. 10%
c. 15%
d. 20%

5. As per RBI guidelines, for FY 2019-20 banks can pay the maximum
dividends to the share holders by allocation _______% of their profits.
a. 5%
b. 2%
c. 10%
d. Banks should not pay the dividends.

6. RBI has issued various guidelines for opening current accounts of
their customers in August 2020 and advised to ensure the discipline
while opening the current accounts. As per RBI guidelines, banks to
monitor all current accounts and CC/ODs regularly, at least on
_______ basis to ensure the compliance of this circular guidelines.
 a. Quarterly
b. Yearly
c. Half yearly
d. Once in three years.

7. As per the latest RBI guidelines on KYC, the Regulated entities
should upload the KYC data pertains to the accounts respect to Legal
Entities (Other than individuals) in CKYC Registry maintained by
CERSAI opened on or after?
a. 1 st Jan 2021
b. 1st Oct 2021
c. 31st Dec. 2021
d. 1st April 2021

8. Banks can avail the funds under On Tap TLTRO which can be
deployed in identified sectors, stressed sectors identified by the
Kamath committee plus health care sector. The maximum tenor of
Ontap TLTRO is?
a. 1 year
b. 2 years
c. 3 years
d. 5 years

9. Recently RBI has decided to implement Risk based Internal Audit (RBIA) in?
a. MFIs
b. NBFCs
c. Large UCBs
d. All the above
e. Only (b) & (c)

10. On which of these following bank RBI has recently imposed restrictions for new digital launches & sourcing new credit card customers till the RBI compliance norms are complied?

a. ICICI Bank
b. IndusInd Bank
c. HDFC Bank
d. AXIS Bank

11. Which of the following Local area bank is cancelled with the license of doing business by Reserve Bank of India recently?
a. Capital Local Area Bank
b. Subhadra Local Area bank
c. Coastal Local Area Bank Ltd
d. Krishna Bhima Samruddhi Local Area Bank Ltd

12. Government of India has signed a pact with which of these following development financial institution for availing assistance of USD 500 million to develop Green highway corridors in the
country?
a. Asian Development Bank
b. New Development Bank
c. World Bank
d. IMF

13. Which of the following country has added India in the watch list for ‘currency manipulators’?
a. Germany
b. USA
c. UK
d. Switzerland

14. As per the recommendation of VK Sharma committee banks should not insist for collateral security for MSME loans upto (Which are not covered under any Credit guarantee Schemes)
a. 20 lakhs
b. 15 lakhs
c. 10 lakhs
d. 50 lakhs

15. A person who is regular in filing of income tax returns from past 3 years. He withdraws cash of Rs. 20 lakh in a financial year. The applicable rate of TDS on his cash withdrawl is?
a. 2%
b. 1%
c. 5%
d. Nil

16. What is the maximum loan a bank can grant to an individual against its shares/equity securities in Demat/ Physical form ?
a. Rs. 10 lakh in demat form and Rs. 5 lakh if the shares are held in physical form.
b. Rs. 50 lakh in demat form and Rs. 20 lakh if the shares are held in physical form.
c. Rs. 20 lakh in demat form and Rs. 10 lakh if the shares are held in physical form.
d. Banks are not permitted to extend loan against shares

17. Simplified hedging facility introduced by RBI facilitates the users to hedge their foreign currency exposures without providing any
documentary proof for underlying transactions. What is the
maximum cap on Outstanding Contracts can be hedged through this
facility?
a. USD 30 million
b. 25 million
c. USD 50 Million
d. No maximum cap

18. As per RBI guidelines, an exporter to realize and repatriate the
amount representing the full value of goods or softwares or services
exported by them within a maximum period of ? (Other than exports
made to warehouses established outside India)
a. 6 months
b. 3 months
c. 9 months
d. 12 months

19. What is the maximum quantum of Trade credit can be raised by Indian importer from overseas Suppliers or Banks or FIs as per latest RBI guidelines under Automatic route?
a. USD 50 million per Import Transaction and upto USD 150 million or
equivalent per import transaction for oil/gas refining & marketing, airline and shipping companies.
b. USD 100 million per Import Transaction and upto USD 200 million or equivalent per import transaction for oil/gas refining & marketing, airline and shipping companies.
c. No maximum limit d. USD 10 million irrespective of the business activity of the importer.

20. Loans for agriculture infrastructure will be eligible for priority sector advances subject to an aggregate sanctioned limit of _______per borrower from the banking system.
a. Rs. 50 crore
b. Rs. 5 crore
c. Rs. 100 crore
d. Rs. 10 crore

21 As per IBA and PSB reforms under EASE 3.0, the existing Customers’ Day is extended at the organization structure level and be conducted on 10th ; 3.00 PM to 5.00 PM of every month or next working day if the above day is a holiday.

22 As per Finance Act 2020, a new section 206C (1G) has been introduced in the Income Tax Act 1961 for Tax Collection at Source on amount remitted out of India under Liberalized Remittance Scheme of Reserve Bank of India exceeding Rs 7 Lacs during a financial year.

23 Central Economic Intelligence Bureau (CEIB), Department of
Revenue, Ministry of Finance has requested to forward copies of
Forensic Audit reports in Bank Fraud matters directly to CBI and
Enforcement Directorate in future.  

24 Central Fraud Registry (CFR) is online portal of RBI which contains information pertaining to frauds which have been reported by
commercial banks (Public Sector banks, private banks, foreign banks
and local area banks) and selected financial institutions.

25 All cheques of Rs 100000/ & above, (drawn in our customer’s
accounts) received across the counter or through Clearing would
invariably be processed through the “Magnifying Glass and the UV
Lamp” by the concerned official before processing / passing the
cheques.

26 Bank to put in place a system of periodic legal audit of the title deeds and other documents in respect of all credit exposures of ? 5 Crores and above and reverification of title deeds with relevant authorities as part of regular audit exercise till the loan stands fully repaid.

27 The bank has implemented Enterprise wide Fraud Risk Management (EFRM) Solution to monitor and prevent the suspicious transactions of Core Banking Solution, Internet Banking, Mobile Banking, Credit Card, Debit Card, performed on POS & e-Commerce channels.

28 Regarding cheques presented in CTS clearing, the telephonic
confirmation may be obtained for cheques of Rs. 5 lacs and
above, before passing.

29. 3rd Pillar in Basel 2 relates to
a. Market discipline
b. Supervisory review
c. Minimum capital
d. Risk management
e. None of the above

30. A loan account has been running irregular and can turn out to be a non-performing asset. What kind of risk its is?
a. Liquidity risk
b. Asset-liability risk
c. Operational risk
d. Credit Risk
e. None of the above

31. ______risk is the risk of loss arising from adverse public opinion and damage to reputation, is called
a. Liquidity risk
b. Operational risk
c. Reputation risk
d. Legal risk
e. None of the above

32.Bank account of which of the following is covered in the low risk category of customers?
a. Public limited company
b. A high net worth individual
c. A salaried employee
d. A non-resident Indian
e. None of the above

33.Sale of a govt. security by a bank, which it does not own immediately, to other bank is called
a. long sale
b. short sale
c. unauthorized sale
d. invalid sale
e. None of the above

34.C R A R stands for
f. Capital and Risky Assets Relation
g. Continuous Risk Assessment Report
h. Capital to Ratio Asset Risk
i. Capital to Risk Weighted Assets Ratio
j. None of the above

35.The Basel Committee on Banking Supervision (BCBS) is a committee of
a. Cenral Banks & amp; Banking supervisory authorities
b. Central Govenments
c. Commercial Banks
d. Industry Associations
e. None of the above

36. Basel Accords are ------------- on banking laws and regulations issued by the BCBS
a. Legal directives
b. International laws
c. Non-binding recommendations
d. Binding recommendations
e. None of the above

37.Guidelines on Basel III capital regulation have been implemented from ------------- in India in phases
a. 1.4.1991
b. 01.01.2013
c. 1.1.2000
d. 01.01.2015
e. None of the above

38.There are ------------ mutually re-inforcing pillars of capital adequacy framework under BASEL III
a. 3
b. 2
c. 4
d. No such pillars
e. None of the above

39.“Credit risk” is the possibility of loss associated with changes in the credit quality of the ---------------------------------
a. Borrowers
b. Counter parties
c. Borrowers or Counter parties
d. Economy
e. Neither borrower nor counter party

40.Credit Risk Management in the bank would comprise of following building blocks
a. CRM Structure
b. Credit Risk Policy
c. Credit Risk Stategy
d. Credit Risk Processes & Systems
e. all of the above

41.Based on recommendations of ____ credit approval committees at
HO/ZO/Co/CLPC level are formed
a. RBI
b. Bank & its Internal policy
c. Ministry of Finance Department of Financial Services
d. Central Vigilance commission
e. Basel Norm

42.According to Economic Survey 2020, India’s aspiration to become a $5 trillion economy depends critically on:
1. Enable fair competition and ease doing business.
2. Efficiently scale up the banking sector.
3. Achieve all the Sustainable Development Goals (SDGs)
4. Provide equal opportunities for new entrants.
1 Only
2 Only
3 Only
4 Only


43.A 10 percent increase in registration of new firms in a district yields a —– increase in Gross Domestic District Product (GDDP)?
a. 1.40%
b. 1.80%
c. 2.20%
d. 2.40%
e. None of the above

44.Which of the following factor in a district foster local entrepreneurship significantly?
a. Literacy & Education
b. Employment Rate
c. Availability of Special Economic Zones (SEZs)
d. HDI of the district
e. Per Capita Income of the district

45. Before liberalisation, a Sensex firm expected to stay in it for 60 years, which decreased to only —- years after liberalisation.
a. 12 Years
b. 5 Years
c. 10 Years
d. 2 Years
e. 15 Years

46. What is India’s rank in the New Firm Created, as per World Bank?
a. 11th
b. 111th
c. 3rd
d. 8th
e. 22nd

47.As per Sec 13 of NI Act which of the following Instrument payable either to order or to bearer is/are Negotiable Instrument?
a. Only Promissory Note
b. Only Bill of Exchange
c. Only Cheque
d. All the three
e. None of the above

48.The Act came into effect from
a. 01.04.1891
b. 01.04.1881
c. 01.03.1882
d. 01.04.1890
e. None of the above

49. Promissory note is defined in Sec ..of NI Act
a. Sec 5
b. Sec 4
c. Sec 6
d. Sec 3
e. Sec 5


50.Promissory Note is an instrument in writing (not being a bank note or a currency note) containing an ................ undertaking signed by the maker, to pay a certain some of money only to, or to order of a certain person, or to the bearer of the instrument.
a. Conditional
b. conditional as well as unconditional
c. condition required
d. unconditional
e. None of the above

51.Bill of Exchange is defined in Sec ..of NI Act
a. Sec 5
b. Sec 4
c. Sec 6
d. Sec 3
e. Sec 2

52. When was the RBI Act enacted?
a. 1st April,1935
b. 28th November,1934
c. 6th March, 1934
d. 1st April,1934
e. None of the Above

53. What can be the maximum denomination of notes as per the Section 24 of the RBI Act?
a. Rs. 5000
b. Rs. 10000
c. Rs. 2000
d. Rs. 25000
e. Rs. 50000

54. Which section of the RBI Act allows the RBI to form rules regarding the exchange of damaged and imperfect notes?
a. Sec-17
b. Sec-21
c. Sec-19
d. Sec-28
e. Sec-42(1)

55. Which section of the RBI Act-1934 allows the RBI to provide loans to banks and state financial corporations?
a. Sec-17
b. Sec-18
c. Sec-19
d. Sec-20
e. None of the Above

56. Which section of RBI Act states that the RBI has the exclusive rights to issue currency notes in India?
a. Sec-21
b. Sec-20
c. Sec-22
d. Sec-19
e. None of the Above



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