SBI Clerk

Banking Awareness Capsule

1. The term ‘Advances’ will mean which of the following credit facilities?
a) Cash credit
b) Overdrafts
c) Term loans
d) Bills discounted / purchased, factored receivables, etc. and investments other than that in the nature of equity
e) All the above

2. Which is called as ‘Fully Secured’loan?
a) When the amounts due to a bank (present value of principal and interest receivable as per restructured loan terms) are fully covered by the value of security, duly charged in its favour in respect of those dues, the bank’s dues are considered to be fully secured.
b) Cheque
c) Demand draft
d) Bank note
e) None of these

3. Which is called as ‘Restructured Account’?
a) SB account
b) A restructured account is one where the bank, for economic or legal reasons relating to the borrower’s financial difficulty, grants to the borrower concessions that the bank would not otherwise consider.
c) Current account
d) RD account
e) FD account

4. CDR is a non-statutory mechanism which is a voluntary system based on Debtor-Creditor Agreement (DCA) and Inter-Creditor Agreement (ICA). In the abbreviation, CDR, the letter D stands for what?
a) Draft
b) Debt (CDR : Corporate Debt Restructuring)
c) Due
d) Date
e) Drive

5. Banks may restructure the accounts and classify under which categories?
a) ‘Standard’,
b) ‘Sub- standard’
c) ‘Doubtful’
d) All the above
e) None of these

6. CAP can also include resolution by way of Flexible Structuring of Project Loans, Change in Ownership under Strategic Debt Restructuring, Scheme for Sustainable Structuring of Stressed Assets (S4A), etc. What is CAP?
a) Corrective Action Plan
b) Clean Action Plan
c) Clear Action Plan
d) Cool Action Plan
e) None of these

7. What is Bharat Bill Payment System (BBPS)?
a) Bharat Bill Payment System (BBPS) is an integrated bill payment system which will offer interoperable bill payment service to customers online as well as through a network of agents on the ground
b) The system will provide multiple payment modes and instant confirmation of payment.
c) Both (a) & (b)
d) It is a machine
e) None of these

8. Recently RBI announced the introduction of how many additional settlements in the NEFT system to enhance the efficiency and add to customer convenience? Give details.
a) The additional 11 settlements at halfhour intervals will be introduced with effect from July 10, 2017 (Monday) at 8.30 am, 9.30 am, 10.30 am ……… 5.30 pm and 6.30 pm, taking the total number of half hourly settlement batches during the day to 23.
b) The starting batch at 8.00 am and closing batch at 7.00 pm shall remain the same as hitherto.
c) The return discipline shall also remain the same i.e., B+2 hours (settlement batch time plus two hours) as per extant practice
d) All the above
e) None of these

9. The rate of interest on the Floating Rate Bonds, 2024 (FRB 2024) applicable for the half year May 07, 2017 to November 06, 2017 shall be ____ percent per annum.
a) 6.30
b) 5.30
c) 2.30
d) 4.30
e) None of these

10. The Reserve Bank conducts a regular survey to assess the business sentiments in Services and Infrastructure sectors, which play a pivotal role in economic development. The survey schedule is very short and simple, containing qualitative questions covering a set of seven business indicators. What are they?
a) Overall business situation,
b) Turnover,.
c) Part-time employees,
d) Cost of finance, availability of finance, cost of inputs and profit margin
e) All the above

11. Which is called as ‘Banking Outlet’?
a) A ‘Banking Outlet’ is a fixed point service delivery unit,
b) It may be manned by either bank’s staff or its Business Correspondent where services of acceptance of deposits, encashment of cheques/cash withdrawal or lending of money are provided for a minimum of 4 hours per day for at least five days a week.
c) Both (a) and(b)
d) Pipe line
e) None of these

12. Which is called as ‘Part-time banking outlet’?
a) “Any other fixed point service delivery unit of the bank which does not comply with the above prescription regarding minimum working hours/days will be considered as ‘part-time banking outlet’.”‘
b) Unemployment generator
c) Pump House
d) Store
e) None of these

13. What is Unbanked Rural Centre (URC)?
a) An unbanked rural centre (URC) is defined as a rural (tier 5 and 6) centre that does not have a CBS-enabled ‘banking outlet’ of a Scheduled Commercial Bank or a CBS-enabled Regional Rural Bank, Local Area Bank, licensed Co-operative Bank or any other CBS-enabled bank licensed by the Reserve Bank for carrying out customer based banking transactions.
b) Till such time as the guidelines for RRBs, LABs, Co-operative Banks and other banks are aligned with the proposed recommendations, their physical brick and mortar branches be taken into account for the purpose.”
c) Both (a) & (b)
d) Development centre
e) None of these

14. The opening of new branches and shifting of existing branches of banks is governed by the provisions of which Section of the Banking Regulation Act, 1949?
a) 2
b) 23
c) 42
d) 57
e) None of these

15. Which of the following is correct?
a) ATM : Automated Teller Machine
b) CDM: Cash Deposit Machine
c) BNAM :Bunch Note Acceptor Machine
d) All the above
e) None of these

16. What are the objectives of setting up of payments banks?
a) Providing small savings accounts
b) Payments/remittance services to migrant labour workforce
c) Payments/remittance services to low income households, small businesses, other unorganised sector entities and other users.
d) All the above
e) None of these

17. What is Gross Value Added (GVA)?
a) Gross value added of a sector is defined as the value of output less the value of its intermediate inputs.
b) Value added created by a sector is shared between labour compensation and capital compensation.
c) Both (a) & (b)
d) It is instalment amount
e) None of these

18. The Government of China (Govern ment-as-Sovereign) controls China’s four largest banks. What are they ?
a) Industrial & Commercial Bank of China,
b) Bank of China
c) China Construction Bank and
d) Agricultural Bank of China, through an investment company, Central Huijin Investment Ltd.
e) All the above

19. What is ‘Mis-selling’?
a) Products need to be matched with customer demographics, customer income and wealth, and customer risk-appetite.
b) Seen differently and through an example, to position aggressive equity-linked products to low or middle income customers nearing retirement cannot be labeled a good selling practice, and would constitute misselling.
c) Both (a) & (b)
d) Selling in super bazar
e) None of these

20. Bank branches follow tier-wise classification of centres based on population. As per 2011 Census, Tier -1centre will be with how much population?
a) 1,00,000 and above
b) 10,000
c) 5,000
d) 2,000
e) None of these

21. To declare a Bank branch as Metro politan Centre, that centre should have how much population (as per 2011 Census)?
a) 10, 00,000 and above
b) 10,000
c) 5,000
d) 2,000
e) None of these

22. Which is called as ‘doubtful asset’?
a) Which has less doubts
b) “Doubtful asset” means an asset which remains a sub-standard asset for a period exceeding 12 months
c) Which has high value
d) Which has double value
e) None of these

23. What is ‘hybrid debt capital instrument’?
a) “Hybrid debt capital instrument” means capital instrument which possesses certain characteristics of equity as well as of debt
b) Hybrid seeds
c) Hybrid plants
d) Double buildings
e) None of these

24. Which is called as ‘Public Issue’ in terms of companiesshares?
a) A problem
b) “Public issue” means an invitation by an NBFC to public to subscribe to the securities offered through a prospectus.
c) A government question
d) NGO problem
e) None of these

25. What is “Preferential Allotment” or “Private placement” with reference to companies affairs?
a) Non-public offering of NCDs by NBFCs to such number of select subscribers and such subscription amounts, as may be specified by the Reserve Bank from time to time
b) IPO c) Public Offering
d) Government residential allotment
e) None of these

26. Who is called as ‘non-co-operative borrower’?
a) A “non-co-operative borrower” is defined as one who does not provide necessary information required by a lender to assess its financial health even after 2 reminders; or denies access to securities etc. as per terms of sanction or does not comply with other terms of loan agreements within stipulated period;
b) A government employee
c) Private employee
d) Business man
e) None of these

27. When the interest subvention scheme was introduced by Government of India?
a) The scheme was introduced in 2006-07
b) Government of India provided interest subvention of 2 % to Public Sector Banks, Regional Rural Banks (RRBs) and Cooperative Banks in respect of short term production credit up to Rs. 3.00 lakh provided to farmers out of their own resource
c) Both (a) & (b)
d) Before 1947
e) None of these

28. Who are intermediaries, working for banks ?
a) Direct sales agents
b) automobile dealers
c) Merchant establishments
d) All the above
e) None of these

29. All mobile banking transactions shall be permitted only by validation through a two factor authentication. One of the factors of authentication shall be of what ?
a) PAN
b) mPIN or any higher standard
c) TAN
d) Praan
e) None of these

30. Customers can transact certain types of businesses through the virtual branches. In these branches what are the facilities available?
a) ATMs
b) Phones
c) Two-way video monitors
d) Communication systems
e) All the above

31. What are the major costs, which have to be considered while pricing bank products?
a) Interest cost and servicing cost
b) Marginal costs
c) Average costs
d) Fixed costs
e) None of these

32. What is ‘assignment’? Give details 
a) It is a mode of providing security to a banker for an advance
b) It is transfer of right, property or a debt
c) The transferor is called assignor and the transferee assignee
d) All the above
e) None of these

Banking Awareness Capsule

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