Important Banking Awareness Questions - 2

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1. Who cannot issue Certificate of Deposit (CD)?

Ans: Regional Rural Banks (RRBs) and Local Area Banks (LABs)

2. Expand ASBA:

Ans: Application Supported by Blocked Amount

3. Depositor Education and Awareness Fund (DEAF) is maintained with:

Ans: RBI

4. Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with:

Ans: Central Bank (RBI)

5. What is the maximum amount per transaction NEFT limit for cash-based remittances to Nepal?

Ans: Rs. 50,000

6. What does CAR stands for?

Ans: Capital Adequacy Ratio

7. 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.)

8. When money is lent or borrowed for one day or on overnight basis it is known as:

Ans: Call Money

9. When money is lent or borrowed for between 2 days and 14 days it is known as:

Ans: Notice money

10. When money is lent or borrowed for a period of more than 14 days, it is known as:

Ans: Term money

11. Treasury Bills and Certificate of Deposit are considered as the ____instruments.

Ans: negotiable money market

12. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a _____.

Ans: Promissory note.

13. What is the upper limit in Public Provident Fund (PPF)?

Ans: Rs. 1.5 lakhs

14. 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

15. What is the time limit for an asset or loan to be declared as Non-Performing Asset?

Ans: 90 days

16. Deposit Insurance and Credit Guarantee Corporation (DICGC) does not cover:

Ans: Primary co-operative societies

17. RBI measure to liquidate the market:

Ans: Repo rate.

18. Full form of EFT:

Ans: Electronic Fund Transfer

19. Fastest mode of transaction:

Ans: RTGS

20. Alphanumeric code on cheque is known as:

Ans: Indian Financial System Code (IFSC)

21. Bank pays interest on savings account?

Ans: Daily Basis

22. 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.)

23. RuPay Card is an Indian version of credit/debit card is launched by which organization:

Ans: NPCI (National Payments Corporation of India)

24. Fixed Deposit (FD)Account may be opened for a minimum period of:

Ans: 7 days

25. What is the minimum amount required to open a Fixed Deposit (FD)?

Ans: Rs.1000

26. The Banks has converted all ‘no - frills' accounts’ into:

Ans: Basic Savings Bank Deposit Accounts

27. 'Pradhan Mantri Jan Dhan Yojana' is a Scheme for:

Ans: Financial inclusion

28. How much overdraft facility to be provided in 'Pradhan Mantri Jan Dhan Yojana' scheme?

Ans: Rs. 5,000

29. In CBS, C stands for:

Ans: Core

30. In CRAR, A stands for:

Ans: Assets (Capital to Risk Weighted Assets Rate).