šŸ“ŒImportant Banking Awareness Questions :

1. MICR code consists of how many digits?

Ans: 9 digits.

(First three digits denotes city, 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 (NPA)
7. Who controls the Monetary Policy in India?

Ans: RBI (Reserve Bank of India)
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 ā€“

Ans: Indian Financial System Code
11. Commercial paper can be issued for a maximum

period of:

Ans: 365 days or 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 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 (KYC)
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

(PPF)?

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 ā€˜no – frills’

accountsā€™ 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
64. ATMs or Cash Dispensing machine which are

owned and operated by Non-Banking Financial

Companies are called:

Ans: White Label ATMs.
65. RBI gave in-principle for Banking license to:

Ans: IDFC and Bandhan
66. Minimum capital requirement for new banks in

private sector is:

Ans: Rs. 500 crore
67. A Non-Banking Financial Company (NBFC) is a

company registered under the:

Ans: Companies Act, 1956
68. Minimum capital requirement for Non-Banking

Financial Company (NBFC) is:

Ans: Rs. 500 crore
69. The NBFCs are allowed to accept/renew public

deposits for a minimum period of:

Ans: 12 months ( and maximum period of 60

months)
70. 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
71. Minimum capital requirement for Foreign banks

that want to set up operations in India is:

Ans: Rs. 500 crore
72. What is the minimum paid-up capital

requirement of both small banks and payments

banks in India?

Ans: Rs. 100 crore

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