Vetri 2024 (Success) Sbild Trichy Promotion Guide

SBILD TIRUCHIRAPALLI
ROCKING FORT
PROMOTION GUIDE 2024
(Updated till 31.10.2023)
(For internal Circulation only)
1
FOREWORD
It gives me immense pleasure in releasing “VETRI 2024”, the updated Promotion

Booklet, prepared and compiled by Team SBILD Tiruchirappalli.
The changing dynamics of banking requires us to be agile, informed and forward thinking.
The Promotion exercise in SBI is to identify individuals who exhibit skill, aptitude, and
determination in banking operations. Aspiring staff members should consider this
exercise as an opportunity for career elevation which rewards in the form of personal
development, increased job satisfaction, recognition, respect, and financial security.
“அருவினை யென்ப உளவவோ கருவிெோன்

கோலம் அறிந்து யெெின்” (குறள் 483)
“Can there be any act which is impossible,
If right means are adopted at the right time”
~ Thiruvalluvar (483)
I am happy to note that this Promotion booklet from SBILD Tiruchirapalli has been brought
out at the right time with a view to help aspiring candidates in their preparation.
I extend my appreciation to Shri. P. Arivalagan, AGM & Director, SBILD Tiruchirapalli and
his entire team for their meticulous efforts in preparation / compilation of this booklet
“VETRI 2024”.
My best wishes to all the candidates.
Ravi Ranjan
Chief General Manager
Local Head Office
Chennai.
Date: 22.11.2023
SBILD Tiruchirapalli
2
FOREWORD
Securing promotion is about building a foundation for a successful and fulfilling career in
the organisation. It is a step towards assuming greater leadership positions. In the face
of ever-evolving challenges and opportunities, the need for a well-trained and adaptable
workforce is paramount. The bank tests its aspiring employees about various facets of
the Banking spectrum to promote and place suitable candidates in higher echelons of the
organisation.
Promotion exercise demands exhaustive efforts to assimilate information on various

products, processes and policies of the Bank. The promotion booklet “VETRI 2024”
released by SBILD Tiruchirapalli would act as an able guide to help aspirants.
I appreciate the efforts of Shri. P Arivalagan, AGM & Director and faculty members of
SBILD Tiruchirapalli in bringing out this updated promotion booklet “VETRI 2024” at the
right time.
I impress upon all the staff members to remember that success is nothing, but
preparation met with opportunity.
I wish them all success in their efforts.
Sanjeev Kumar
DGM & Circle Development Officer
Local Head Office
Chennai.
Date: 22.11.2023
3
PREFACE
My Dear Friends,
It is with immense pleasure and deep sense of commitment I introduce this

comprehensive Promotion booklet “VETRI 2024” meticulously crafted by our Team.
The Promotion booklet, “VETRI 2024” is not merely a compilation of information on

products and processes, but also a testament to our collective vision of fostering a culture
of continuous learning and growth. As our Bank aspires to achieve new heights, it
becomes imperative to equip our dedicated professionals with required knowledge and
skills necessary for success. This booklet will aid aspiring candidates in their pursuit for
success to ensure themselves eligible for being placed in higher positions and
responsibilities.
I wholeheartedly thank Smt. Suranjana Dutta, Chief General Manager, Strategic Training
Unit, Corporate Centre and other functionaries in STU for guiding us in this initiative. I
profusely thank Shri Ravi Ranjan, Chief General Manager, Chennai Circle who has been
the beaconing light in bringing out the booklet. With immense gratitude, I thank Shri.
Sanjeev Kumar, Deputy General Manager & Circle Development Officer, Chennai Circle
who has always been the motivating mentor in our every initiative. I also thank Learning
& Development Department, LHO for their facilitative efforts in this initiative.
While every effort has been taken to ensure the correctness of the contents, should there
be any changes, please bring to our knowledge through your valuable feedback.
I wish the candidates success in the examination.
P Arivalagan
AGM & Director
Date:22.11.2023
4
Contact Us
STATE BANK INSTITUTE OF LEARNING AND
DEVELOPMENT
7-C, McDonalds Road, PHONE # 0431-2460173/ 2410957
Cantonment, E-MAIL [email protected]
Tiruchirappalli - 620001 GPS : 10.7990910, 78.6844706
Tamilnadu
Shri.Arivalagan. P, AGM & Director, [email protected] 7045814547
Name of
Faculty Designation Email id Mobile No.
Chief Manager
H.Jahir Hussain (Training) [email protected] 9445862400
Chief Manager
R.Balamurugan (Training) [email protected] 9445862402
Chief Manager
M.Gajalakshmi (Training) [email protected] 9445862581
Chief Manager
H.Murugan (Training) [email protected] 9445862382
Chief Manager
M Hariprasad (Training) [email protected] 9884415497
Manager
A.Vijay Anand (Training) [email protected] 9445864486
Administrative Wing
K.Gurunathan Deputy
(Admin.Officer) Manager [email protected] 9445000855
B.Vinoth Associate [email protected] 04312460173
5
INDEX
Sl.
No. Topics Page No
1 Syllabus, Pattern of Examination 8
2 History of SBI 12
3 Organizational Structure 17
4 Policy Guidelines 21
5 Financial Results & Performance 23
6 KYC, AML/CFT, PMLA, FATCA, etc. 43
7 Cash Department 69
8 System and Procedures 74
9 Safe Deposit Lockers, Safe Custody, Articles, etc. 95
10 Legal issues / Laws relevant to Bankers 101
11 General awareness about Banking 123
12 Practical problems on General Banking 135
13 Liability products 145
14 P – Seg Asset products 166
15 SME Advances and products 238
16 Agri Advances and products 265
17 Priority Sector Lending 274
18 Government Business & Government products 281
19 Digital Banking / IT Products 299
20 Pre-sanction, Post-sanction process, CICs 332
21 Payment Solutions, Transactional products 347
22 Forex / Treasury / International Banking / NRI Business 358
6
23 Deceased Settlement 389
24 Customer Grievances / BCSBI / Customer Service 394

Committees
25 NPA Management 399
26 Human Resources 416
27 Preventive Vigilance & RFIA 419
28 Customer Value Enhancement / Cross Selling 431
29 Recent Circulars, Changes in Banking and Economic 436

environment
30 Quick Recap / One liner points 457
31 Key Highlights of Union Budget 2023 465
Descriptive Topics
31 English Language & Comprehension 477
32 Essays on Banking / Economics related topics 499
33 Business Correspondence 520
34 Rationale, For & Against, Situation Analysis 526
35 Data Interpretation 579
7
Syllabus, Pattern of Examination
Trainee Officers Examination
Particulars No. of
Section-I : 120 Questions (120 Minutes) Qns. Marks
General Awareness about Banking Environment, KYC, Legal 20 10
Issues
General Banking, handling of customer grievances and Preventive
Vigilance (The test will contain passages relating to practical day-
to-day situations in branches/offices, about 10-15 lines with 5 20 20
objective questions on each passage to identify the best option)
Knowledge about products & services of our Bank including retail

finance, our associates, & subsidiaries and of other banks. (Focus 20 20
on USPs of our products & services) and Financial Inclusion.
Knowledge of CBS and other IT products in use in the Bank and IT 20 15

related security concerns.
Alternate Channel Products 20 10
Latest Financial results, performance indicators of the Bank and

Productivity & profitability related concerns of the Bank, 20 5
Organizational Structure and History.
SECTION: II
(Qualifying marks 50% For General & 45% For SC/STs) – 40 Min
Writing Essay on banking related topics (250 words)
(For evaluating comprehension skill and communication skill). 1 out of 3 20
TOTAL (Overall qualifying marks 65% (for General)

& 60% (for SC/STs) 100
The pattern of descriptive examination is henceforth modified from pen & paper
mode to online mode (Keyboard & mouse) in all future descriptive examination
for promotion from Clerical Cadre to Officer Cadre (Trainee Officer Channel).
(From the PY 2024-25)
8
Officer JMGS-I Examination
Particulars No. of
140 Questions (150 Minutes) Qns. Marks
General Banking, KYC, Legal Issues, System & Procedures in our 50 25
Bank
CBS & Computer Awareness, computer security related questions 20 15
Products & Services of the Bank, Associates & Subsidiaries, Other
banks, Alternate Channel & IT Products, Financial Inclusion. 30 15
Latest Financial results, performance indicators of the

Bank and productivity & profitability related concerns of the 10 5
Bank.
Objective type questions on practical problems in general banking 10 20
General Awareness 10 10
Organizational Structure & Policy guidelines of the Bank 10 10
Total (Duration: 150 minutes) 140 100
Officer MMGS-II Examination
Particulars No. of
Questions (120 Minutes) Qns. Marks
Product Features- Deposit/ Liability Product 20 10
Product Features- Advances/ Asset Product 20 10
IT Channels, Payment Solutions, Transaction Products etc. and
questions on other new initiatives 10 5
Systems & Procedures in Branches and CPCs (both System and
Manual), 20 10
Organizational Structure and questions related to HR area
Forex/ Treasury/ International Banking 5 2.5
Government Business, Cross Selling Products and Financial Inclusion 15 7.5
Laws relevant to Banks 15 7.5
Macro-economic environment/ General Awareness 10 5
Pre-sanction/ Post-sanction processes & NPA management in
Loans and advances 15 7.5
English Language Comprehension 20 10
Total (Duration: 120 minutes) 150 75
9
Officer MMGS-III Examination

No. of Max.
I OBJECTIVE QUESTIONS Questions Marks
Section- I
1 Product Features- Deposit/Liability 15 7.5
2 Product Features- Advances/Assets 15 7.5
IT Channels, Payment Solutions, Transaction
3 products etc. and questions on other new 10 5
initiatives
4 Systems and Procedure in branches and CPCs
(both System & Manual), Organizational Structure 20 10
and questions related to HR area
5 Forex/Treasury/IB 5 2.5
Government Business, Cross Selling Products and
6 Financial Inclusion 15 7.5
7 Laws relevant to Banks 15 7.5
8 Macro- economic Environment/ General 10 5
Awareness
Pre sanction / post sanction processes & NPA
9 management in Loans and Advances 15 7.5
10 Supervisory Role and Responsibilities 10 5
11 Data Interpretation 10 5
Total Duration – 100 Minutes 140 70
II DESCRIPTIVE QUESTIONS
1 Rationale 4 (Out of 6) 8
2 For & Against 4 (Out of 6) 8
3 Situational Analysis 2 (Out of 3) 6
4 Comprehension 1 (4 Questions) 4
5 Business Correspondence 1 (Out of 2) 4
Total- Descriptive ( 80 minutes) 30
GRAND TOTAL 100
The pattern of descriptive examination is henceforth modified from pen & paper mode to online
mode (Keyboard & mouse) in all future descriptive examination for promotion from MMGS-II to
MMGS-III (General Cadre). W.e.f PY 2024-25
10
Specialist Officers: Scale II & Scale III

No. of Max.
I OBJECTIVE QUESTIONS Questions Marks
Section- I
1 General Awareness of Banking & Organizational 40 20
Structure etc
2 Technical – related to the area of specialization 40 20
English Language Comprehension
3 20 10
Total Duration – 90 Minutes 140 50

II DESCRIPTIVE QUESTIONS
1 Rationale (Related to area of specialization) 5 (Out of 8) 30
2 Short Notes, Situational Analysis related to the area 2 (Out of 3) 20
of specialization
Total Duration – 120 Minutes 50
GRAND TOTAL 100
The pattern of descriptive examination is henceforth modified from pen & paper mode to online
mode (Keyboard & mouse) in all future descriptive examination for promotion in Specialist Cadre
(JMGS-I to MMGS-II and MMGS-II to MMGS-III) w.e.f PY 2024-25 .
IMPORTANT DATES TO REMEMBER
11
HISTORY OF SBI
EVOLUTION OF SBI
Born as Bank of Calcutta (2 June 1806)

- Renamed Bank of Bengal (2 January 1809)
Bank of Bombay (15 April 1840)

Bank of Madras (1 July 1843)
All three were called Presidency Banks and under the Presidency Banks Act, which came
into operation on 1 May 1876 brought the three presidency banks under a common statute
with similar restrictions on business. The act also authorized the creation of Treasuries, at
Calcutta, Bombay and Madras.
Amalgamated as Imperial Bank of India on 27 January 1921
BIRTH OF SBI
An Act was passed in Parliament in May 1955 based on the recommendations of the All
India Rural Credit Survey Committee and State Bank of India was constituted on 1st July
1955.
State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank
of India to take over seven former State-associated banks as its subsidiaries (later named
Associates).
State Bank of India was thus born with a new sense of social purpose with 480 offices, 3
Local Head Offices and a Central Office.
In 1955, the State Bank of India which took over the Imperial Bank of India adopted the
Banyan Tree as its first logo. As the longest surviving tree, it signified the strong roots of its
bank and its branches growing in all directions depicted the bank’s stability, success and
growth. It became the symbol of trust, strength and usefulness to others.
Representing the simplest and most symmetrical of geometrical shapes, a new logo
designed by the National Institute of Design, Ahmedabad, was adopted on 1 October 1971
to coincide with the inauguration of the bank’s new central office building at Back bay
Reclamation in Bombay.
The circular form of the logo suggested unity, completeness, the fullness of man’s being and
his growing consciousness and continual expansion (of the bank), like concentric rings in
water, to cover the entire county; the small circle in the centre connoted that despite the
bank’s size, it was the small man who held the centre of the State Bank stage. Viewed from
another angle, the small circle with the vertical line suggested a keyhole – the symbol of
security, safety and strength. Through the keyhole one could glimpse the future, with its
promise of progress, growth and fulfilment in business and life.
State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector
Banking and Financial services statutory body headquartered in Mumbai. The rich heritage
and legacy of over 200 years, accredits SBI as the most trusted Bank by Indians through
generations.
12
SBI, the largest Indian Bank with 1/4th market share, serves over 48 crore customers
through its vast network of over 22,405 branches, 65,627 ATMs/ADWMs, 76,089 BC outlets,
with an undeterred focus on innovation, and customer centricity, which stems from the core
values of the Bank - Service, Transparency, Ethics, Politeness and Sustainability.
The Bank has successfully diversified businesses through its various subsidiaries i.e SBI
General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, etc. It has spread its
presence globally and operates across time zones through 235 offices in 29 foreign
countries.
At the helm of affairs is the Bank's Central Board of Directors, comprising specialists from
various sectors. The Directors represent the Government of India, RBI, shareholders,
workmen and non-workmen staff of the Bank. There are several independent and non-
executive Directors apart from the executive directors on the Board.
The Bank's domestic operational area is divided into 17 Circles, each with one Local Head
Office (LHO). The LHOs have Zonal Offices at major centers and Regional Offices at important
districts. SBI now finds itself amongst the world's largest banks. The Bank's Top Management
consists of the Chairman, four Managing Directors, and Deputy Managing Directors.
➢ SBI honoured with “India’s Best Annual Report Awards-2022

➢ Honoured with 3 GOLD AWARDS AT ET HUMAN CAPITAL AWARDS
ceremony, Viz.,
- Gold Award in Individual Category - HR Leader of the Year - Large Scale
Organisations
- Gold Award in Organisational Category - Excellence in Business Continuity
Planning & Management
- Gold Award in Organisational Category - Most Valuable Employer During
COVID-19
➢ SBI won two prestigious Awards, ‘Best Security Operations Centre of the Year’
and for ‘Cyber Security Awareness’ from NASSCOM-DSCI.
Vision
Be the Bank of choice for a transforming India.
Mission
Committed to providing simple, responsive, and innovative
financial solutions.
Values :
Service Transparency Ethics Politeness Sustainability
STEPS:
Service - Principle 1: Serving Our Customers

➢ We shall provide our customers with the best-in-class products, services & solution to
suit their needs.
13
➢ We shall treat our customers with empathy to anticipate, meet and exceed their
expectations.
Principle 2: Providing Ease of Convenience
➢ We shall keep our processes simple and prompt.
➢ We shall address and resolve our customers’ grievances quickly.
Principle 3: Serving Our Nation
➢ We shall strive to make banking accessible to every Indian to build a better India.
➢ We shall contribute to socio-economic development of the country and do our utmost for
the nation building.
Principle 4: Growing Together to Deliver Better
➢ We shall continuously learn, build skills, share knowledge and create a learning
organisation together.
➢ We shall believe in each other, collaborate, draw strength from team-work and achieve
more together.
Transparency - Principle 1: Being Transparent
➢ We shall respect the right of our customers and other stakeholders for maximum
openness in all their interactions with the Bank.
➢ We shall promote transparency both at personal and collective level.
Principle 2: Enjoying Public Trust & Confidence
➢ We shall act with diligence in keeping with our role as the custodians of public money.
➢ We shall conduct all our transactions with probity to conform with the Bank’s fiduciary
responsibilities.
Principle 3: Being Responsible with External Stakeholders
➢ We shall adhere to the best disclosure standards and keep a complete and accurate
records of our accounts.
➢ We shall meticulously follow the applicable laws, rules and regulations.
Principle 4: Safeguarding SBI Assets & Resources
➢ We shall protect the Bank’s assets & resources, tangible as well as intangible, from theft,
waste, misuse, loss and damage.
➢ We shall use the Bank’s assets & resources prudently, both physical and intellectual, for
approved purposes only.
Ethics - Principle 1: Conducting Ourselves with Utmost Integrity
➢ We shall make sure that integrity permeates our workings and decisions every day.
➢ We shall be just and honest to all our stakeholders - customers, colleagues, investors,
communities, public and others we deal with.
Principle 2: Handling Conflicts of Interest – Actual, Potential or Perceived
➢ We shall avoid situations or positions in which personal interests conflict with our
professional duties.
➢ We shall be proactive in identifying and managing conflicts of interest between the Bank
and its stakeholders.
14
Principle 3: Accepting and Offering Gifts or Entertainment
➢ We shall not accept, offer or give gifts, entertainment or other benefits of value save as
specified in our Code of Ethics.
➢ We shall squarely follow our Code and declare the gifts received.
Principle 4: Reporting and Preventing Unethical Activities
➢ We shall always report a conduct that can be detrimental to the interests of Bank or its
stakeholders.
➢ We shall always encourage the speaking up and protect the colleagues who escalate
concerns.
Politeness - Principle 1: Being Polite in Treating Customers
➢ We shall strive to provide a polite, courteous and dignified experience to our customers
in their interactions with us.
➢ We shall listen more than we talk and ensure that we are understanding and understood
while dealing with customers.
Principle 2: Being Polite with Peers & Colleagues- Senior or Junior
➢ We shall be polite in our workplace relationships and create an enabling work place where
work-life balance nurtures wellbeing and productivity as well.
➢ We shall demonstrate care and compassion for each other and foster a high-trust
workplace.
Principle 3: Acting with Empathy & Passion for Colleagues
➢ We shall treat each other like an internal customer and have the highest regard for the
dignity of all colleagues.
➢ We shall connect with our colleagues, engage in open dialogues with them and respect
each other.
Principle 4: Promoting an Inclusive & Empowering Culture
➢ We shall respect different points of view and draw on diversity of thought to stimulate
collaboration and innovation.
➢ We shall acknowledge the worth of all colleagues and appreciate that there are no
unimportant colleagues or unimportant roles, and everyone has a valuable contribution to
make.
Sustainability- Principle 1: Contributing to the Communities Around
➢ We shall commit ourselves to produce positive and lasting impacts in our communities.
➢ We shall continuously engage with the communities around to promote ecological, social
and economic improvements.
Principle 2: Collaborating with Business Partners to Promote Green Future
➢ We shall work together with our partners to find new ways to reduce carbon footprints.
➢ We shall expect our partners to build environmental and social considerations into their
business practices.
➢ We shall collaborate and drive sustainability for transforming India to a low-carbon and
resource-efficient economy.
Principle 3: Being a Responsible Corporate Citizen
15
➢ We shall embrace opportunities to develop eco-friendly products, services and processes
for a sustainable corporate management.
➢ We shall take on responsibility that extends beyond our business and allows to contribute
for promoting social improvements.
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*Top 5 banks by market capitalization in India (As of 16.10.2023)

HDFC 1
ICICI 2
SBI 3
Kotak Mahindra Bank 4
Axis Bank 5
*Ranking by Forbes India published on 16.10.2023
*Top 5 banks by market capitalization in the world (As of 31.08.2023)

JP Morgan Chase 1
Bank of America 2
Industrial & Commercial 3
Bank of China Limited
Agricultural Bank of China 4
HDFC Bank 5
*Ranking by Forbes India published on 21.08.2023
Back to Index page
16
Organizational Structure
Organizational Structure (As on 18.10.2023)
Central Board of Directors as on 22.11.2023

No Name Designation Under Section of SBI Act 1955
1. Shri Dinesh Kumar Khara Chairman 19(a)
2. Shri C.S. Setty Managing Director 19 (b)
4. Shri Ashwini Kumar Tewari Managing Director 19 (b)
5. Shri Alok Kumar Choudhary Managing Director 19 (b)
6. Shri. Vinay M Tonse Managing Director 19(b)
7. CA Ketan S Vikamsey Director 19 (c)
8. Shri Mrugank M Paranjape Director 19 (c)
9. Shri Rajesh Kumar Dubey Director 19 (c)
10. CA Dharmendra Singh Shekhawat Director 19 (c)
11. CA Prafulla P Chhajed Director 19 (d)
12. Smt Swati Gupta Director 19 (d)
13. Dr Vivek Joshi Director 19(e)
14. Shri Ajay Kumar Director 19(f)
17
Organizational structure
1 On recommendations of _____ Committee and through passing of an Act in

Parliament, Imperial Bank of India was renamed as State Bank of India on 1st July
1955.
a) Gorwala b) Hilton Young Mission
c) Kelkar d) Ranganathan
2 SBI's Registered Office & Central Accounts Office is in
a) Mumbai b) Kolkata
c) New-Delhi d) Chennai
3 Who is the largest non-promoter shareholder in SBI
a) LIC b) Tata India Ltd
c) IDBI d) ICICI
4 Stressed Assets Resolution Group (SARG) will take over all NPAs with outstanding
of Rs. ___lakhs and above
a) 5 b) 10
c) 20 d) 25
5 Customer Service Committee of the Board is headed by
a) DMD & CCRO b) CHAIRMAN
c) DMD & CFO d) CGM
6 PRESIDENT OF INDIA holds ____ % share of SBI as on 31st March 2023.
a) 51.58 b) 61.23
c) 56.92 d) 41.58
7 SBI General is a joint venture between SBI and
a) Napean opportunities LLP, WP b) G E Capital
Honey Wheat investments Ltd, PI
opportunities and Axis new
opportunism
c) SBI Caps d) Society General
8 As AMFI is to Mutual Fund, C.I.F is to Life Insurance what is it for General
Insurance?
a) CIF b) Specified Person
c) Agent d) Underwriter
9 SBI Cards and Payment Services Ltd is a joint venture with
a) BNP Paribas b) GE Capital
c) IAG Australia d) Carlyle Group
10 SBI Life Insurance is a joint venture between the State Bank of India and .
a) BNP Paribas Cardif b) GE Capital
c) IAG Australia d) Society General
11 In SBI General Insurance Company Ltd, SBI owns ____ % of the total capital and
other companies ___% as on 31.03.2023.
a) 55,45 b) 75,25
c) 69.95,30.05 d) 56,44
12 Which of the following is not a BPR initiative?
a) RMPB b) Grahak Mitra
c) RCPC d) IBCH
18
13 How many Circles are there in SBI
a) 11 b) 14
c) 16 d) 17
14 SBI Custodial Services Pvt Ltd is established in collaboration with
a) Society General, France b) Banca America
c) FNS, Australia d) McKinsey
15 The Subsidiary launched by SBI for implementation of CSR is
a) SBI Power b) SBI Services
c) SBI Foundation d) None of the above
16 Imperial Bank of India was established in which year.
a) 1806 b) 1921
c) 1855 d) 1905
17 Inspection & Management Audit department at Corporate center is headed by
a) GM b) CGM
c) DMD d) MD
18 Who is heading ALCO at the Corporate Centre
a) DMD (ALM Dept b) DMD & CFO at Corporate Center
c) MD (Risk Management) d) None
19 The Statutory Auditors submit their report on the annual accounts of SBI to
a) Corporate Centre b) The President of India
c) RBI Governor d) None of these
20 BPR is introduced as per the recommendations of which consultancy
organization
a) Rangarajan Committee b) Narasimham Committee
c) Mckinsey & Co d) TCS
21 The following activities will not be undertaken by TFCPC
a) Issue of Inland LC/BG b) Issue of Forex LC/BG
c) Discounting of export bills d) Finance for trade
22 SBI Exclusif has been renamed as
a) SBI Infra Management b) SBI Foundation
c) SBI Wealth d) SBI Sanjeevani
23 Cross Selling Department has been renamed as
a) Customer value Enhancement b) SBI Life Insurance
(CVE)
c) SBI Wealth d) SBI Foundation
24 The stake of SBI group in YES bank as on 31.03.2023 is
a) 45 % b) 30.00 %
c) 34.70 % d) 51 %
25 The HR Subsidiary floated by SBI for penetration in Agri / Rural Market
a) State Bank Operations Support b) State Bank Officers Support Services
Services
c) State Bank Fleet on Street d) SBI Operations Centre
Services
19
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS A A A C A C A B D A
Q 11 12 13 14 15 16 17 18 19 20
ANS C C D A C B C B B C
Q 21 22 23 24 25
ANS D C A B A
Back to Index page
20
i Customer Centricity
ii Increasing our Market Share Across All Business Units
iii Growing Proportion of Low-Cost Liabilities
iv Boosting Fee Income to Propel Profitability Metrics
v Optimizing Costs to Maximize Operating Profits
vi Enhancing Digital Offerings & Using Technology across All Processes
vii Reaping Value from Analytics & Becoming ‘Data-Driven’ Organization
viii Maintaining Robust Asset Quality
ix Ensuring Compliance
x Preparing Future Ready Human Capital
21
22
Financial results & Performance

SBI ANNUAL RESULTS – 31.3.2023 Highlights
23
24
25
26
27
28
29
30
Financial Legacy: A Decade of Banking Excellence
31
32
FY 2022-23 Financial results - Highlights of Chairman’s speech
Being Bank of Choice for Today and Tomorrow
Deposits
➢ Whole Bank deposits grew by 9.19% y-o-y to Rs.44.23 lakh Crore
➢ CASA deposits grew by 4.95% to Rs.18.62 lakh Crore
➢ CASA ratio of our Bank is at 43.80%
➢ Bank opened 1.24 Crore new SB Accounts (out of which 64% opened through
YONO)
Credit
➢ Bank Advances grew by 15.99% (Domestic 15.38% & foreign by 19.55%)
➢ Retail personal loans registered highest YoY growth of 17.64% (accounts 42.5%
of domestic advances)
➢ SME Advances grew by 17.59% to Rs.3.59 lakh Core
➢ Agri & Corporate loans registered a YoY growth of 13.31% ti Rs.2.58 lakh Crore
and 12.52% to Rs. 9.79 lakh Crore, respectively.
➢ Xpress Credit crossed Rs.3lakh Crore mark with YoY growth of 22.72% to Rs.3.04
lakh Crore in FY 2023.
➢ Home Loans and Auto loans grew 14.07% to Rs. 6.41 lakh Crore and 23.22% to
Rs.97,523 Crore respectively during FY 2023
➢ Market Share in Home Loans and Auto Loans is at 33.1% and 19.4% respectively.
Investment
➢ Investment portfolio increased by 6.3% to Rs.15.87 lakh Crore out of which 96% are
domestic investments
➢ Out of domestic investments, 62.94% is in HTM and rest is under AFS & HFT
category.
Profitability:
➢ Standalone net profit during FY 2023 rose by 58% to Rs. 50,232 Crore from previous
year’s net profit of Rs.31,676 Crore. This is the highest standalone profit by any listed
corporate domestically.
➢ NII of the Bank registered a growth of 19.99% to Rs.1,44,841 Crore
➢ Credit costs improved by 23 bps to 0.32%
➢ Operating profit of the Bank stood at Rs. 83,713 Crore (11.18% improvement)
➢ Cost to income ratio increased by 56 bps at 53.87 against 53.31 (FY 2022)
➢ RoA stood at 1.23%
➢ RoE increased to 19.43%
Capital
➢ CET 1 ratio improved by 33bps to reach 10.27%
➢ Overall Capital Adequacy Ratio (CAR) stands at 14.68%
➢ Net profit increased by 55% to Rs. 31,676 crore
Asset Quality
➢ Gross NPA of the bank dropped by 119 bps YoT and stood at 2.78%.
➢ The net NPA ratio accordingly stands at 0.67% as of March 2023 down 35 bps YoY.
➢ Slippages was down by 26.38% compared to FY 2022. Slippage ratio improved by
34bps YoY reaching 0.65%
➢ Improvement in Provision Coverage Ratio (PCR) by 135 bps YoY standing at 76.39%
33
Customer Centricity
➢ ATM Network with 65,627 ATMs incl. ADWMs. 1.3 Crore transaction recorded every
year at Bank’s ATM/ADWM and 5.68 lakh cash deposit transactions at ADWM.
➢ Bank has established CLIC (Customer Liability Identification Cell) across all 17
Circles to deal with complaints related to Unauthorised debit transactions.
➢ Doorstep banking services through agents to all customers at top 100 banking
centres.
➢ Bank has a presence across all time zones through 235 points of presence in 29
countries.
➢ Bank has opened one India visa application centre at Khulna (Bangladesh) and 5
branches and 3 extension counters through its overseas subsidiary in Nepal.
Technology & Innovation
➢ Under YONO, PABL has recorded a YoY growth of 1076% to Rs.3605 Crore
➢ MSME Sahaj Seller’s Invoice Financing on YONO Business providing digital loan and
financing of GST invoice Seller’s Invoice Financing Scheme under GST Sahay, a GOI
initiative.
➢ Contactless Lending Platform (CLP): Bank has sanctioned 6,342 leads worth
Rs.2,940,.24 Crore with ticket size ranging Rs.1 lakh to Rs. 5 Crore
➢ RM(SME) Assisted journey enabled in CLP
➢ Supply chain finance was extended to 34,592 dealers with total sanctioned limits of
over Rs.44,565 Crore eDFS and Rs.16,437 Crore e-VFS scheme.
➢ Bank has entered 16 new eDFS and 37 new e-VFS tie-ups during FY’23.
➢ First Public Sector Bank to register on TReDS platform and Bank has discounted
26,973 bills amounting to Rs.9,800 Crore registering YoY growth of 144%
➢ Bank has floated State Bank Operations Support Services (SBOSS), an HR
subsidiary for penetrating agriculture and rural market
➢ Bank has opened specialized Start up branches at Bengaluru, Mumbai, Delhi and
Chennai
➢ Bank has introduced V-CIP digital process for account opening from home.
➢ During FY 2023, 4.70 lakh customers joined VCIP.
➢ 15000 new GCC machines, Cassette Swap implemented in 12907 Branches, 49719
sites covered under electronic surveillance solutions (eSS).
➢ Free Balance enquiry and Mini statement from SBI ATMs through SMS and the same
services are also available on WhatsApp Banking
➢ 3250 old SWAYAM machines have been replaced.
➢ 20,137 Barcode based SWAYAM machines at 17,643 branches installed and 13 lakh
transactions are processed on daily basis, migrating 3.65 Crore passbook printing
transactions every month from branch counters.
➢ Cybercrime cells at 17 circles working in multiple shifts to attend customer complaints
concerning cyber frauds. A total of 304450 complaints and amount of Rs.51.50 Crore
has been put on hold as on 31.03.2023
Financial Inclusion
➢ As on 31.03.2023, Bank has 76,089 CSPs, providing access to 32 banking products
and services in unbanked areas while reducing footfalls in the branches.
➢ BC/CSP channel has recorded around 53.32 Crore transactions amounting to
Rs.3,30,389 Crore during FY 2023.
➢ On an average, around 25-30 Lakh transactions per day are routed through the
BC/CSP channel.
➢ The BC/CSP channel has opened 14.69 Crore BSBD accounts with `50,091 Crore
deposit.
34
➢ Our bank’s share in PMJJBY, PMSBY and APY are 43.83%, 40.85% and 31.78%
respectively, among all Public Sector bank.
➢ During FY2023, your Bank has achieved 27.88 Lakh APY enrolments as against the
target of 17.90 Lakh allotted by PFRDA (~156% of the target), simultaneously winning
major awards from the PFRDA under various APY campaigns.
Environmental, Social & Governance (ESG) Practices
➢ For FY2023, an amount of Rs. 316.76 Crore has been allocated for undertaking CSR
activities out of which an amount of Rs. 194.78 Crore is allocated to SBI Foundation.
➢ Bank concluded its largest inaugural Syndicated Social loan of $1 billion ($500 million
+ green shoe of $500 million) making it the largest ESG loan raised by a commercial
Bank in the Asia-Pacific market.
➢ Bank’s prominent establishments viz Corporate Office, Global IT Centre and 6 of the
Local Head Offices (LHOs) have shifted to green power through green tariff policy or
through open access channels via solar/wind.
➢ Bank has availed credit from multilateral agencies viz. the World Bank, KfW German
Development Bank etc., for onward lending to RE power developers
Strategic New Initiatives
➢ Bank has partnered with Tata Power to set up EV charging facilities at various
identified premises, including our corporate office, local head offices, and residential
premises across the country.
➢ IT has developed ‘SBI Easy ride’, an end to end digital product which enables two-
wheeler financing without need to visit any branch for sanction or disbursement.
➢ In case of personal loan products, your Bank has integrated Digital Document
Execution into Xpress Credit loans, utilizing e-stamping and e-signature for real-time
document execution to make it customer-centric
➢ For the benefit of its NRI clientele, your Bank has launched a number of services in
FY2023 including tieup with ‘Remitly’ to facilitate swift remittance to India.
➢ Bank has introduced SBI e-Forex facility in the YONO Business - Android app to
enable customers to book foreign exchange rates on the go.
➢ Project Kuber was launched in your Bank, which is driving a special focus on
marketing of current account deposits and various transaction banking products in
CCG vertical
➢ Project SBI Cares’ for automation and streamlining of various pre-retirement and
post-retirement benefits and processes through its HRMS portal.
Subsidiaries
➢ On a consolidated basis, SBI Capital Markets Limited has posted a profit after tax
(PAT) of `725.39 Crore for FY2023 as against `635.42 Crore in the previous year
➢ SBI Group posted a net profit of `308 Crore during the year ended FY2023 as against
`233 Crore in FY2022
➢ With a total Gross Written Premium (GWP) of `10,888 Crore and a YoY growth of
18% , SBI General has increased its market share from 4.15% (FY 22) to 4.21% (FY
23) with 141 branches across India
➢ SBI Life Insurance witnessed growth in Individual New business premium of 26.7%
vis-à-vis industry growth of 15.4%
➢ SB Life generated PAT of Rs.1721 Crore in FY 2023
➢ SBI Cards and Payment Services Ltd. registered PAT of Rs. 2258 Crore in FY 2023
compared to Rs. 1616 Crore in FY 2022, increase of 40% YoY
➢ SBI Funds Management limited is the fastest growing AMCs with growth of over
10.83% against industry average of 5.55% in FY 2023. It has one of the largest
investor base with over 121.80 lakh live investor folios with 27 lakh new investors
added in FY 2023. Co. posted PAT of Rs.1,331.20 Cr. in FY 2023.
35
➢ SBI Global Factors Limited registered a turnover of Rs.5544 Crore for FY 2023 as
compared to turnover of Rs.4773 Crore in FY 2022.
➢ SBI Pension Funds Pvt. Ltd. has earned net profit of Rs.53.51 Cr. for FY 2023. Total
AUM of the company is Rs.339006 Cr. (YoY growth of 20.01%). The company
maintains lead position among 10 PFMs in terms of AUM with market share of
37.71%
Awards and Recognition
➢ Bank was awarded ET BFSI Best Brands award for 2022 and2023.
➢ The Global Finance Magazine also awarded "The Best Bank Award 2022
➢ Bank has been awarded by ET HR World Future Skill Awards, ‘Gold’ under the
category ‘Best Learning Management System’ for Gyanodaya “e-learning” and
askSBI, and ‘Silver’ under the category “High Impact Certification Programme” for
Role Based Certifications.
➢ In HR policies, your Bank received 3-Gold Awards at ET Human Capital Awards,
namely HR Leader of the Year - Large Scale Organizations.
➢ Bank was adjudged the “Winner”,for the fourth year in succession, in Best Digital
Financial Inclusion category among Large Banks in IBA Annual Banking Technology
Awards 2022
➢ In Home loans, GoI awarded Best Performing Bank under CLSS” under ‘PMAY-U
Awards 2021: 150 Days Challenge’.
➢ ICAI awarded Gold Shield Category-I for Public Sector FY 2021-22. Bank also
bagged “India’s Best Annual Report Award 2022.
➢ For ESG initiatives, Bank awarded CDP score of B, highest score in the last 5 years
by CDP (formerly Carbon Disclosure Project)
➢ Bank was awarded “Issuer of the Year Private Placement” at the 5th National Summit
& Awards on Corporate Bond Market 2022 by ASSOCHAM
➢ DSCI Excellence Awards 2022 awarded “Best Security Awareness and Best Security
Operations Centre of the year”
36
37
38
Financial Results, Policy Guidelines & Others
1 Total deposits as at the end of financial year 31.03.2023 stands at

a) Rs. 40,41,621 crores b) Rs. 40,06,344 crores
c) Rs. 40,51,534 crores d) Rs. 44,23,778 Crores
2 Gross advances as at the end of financial year 31.03.2023 stands at
a) Rs.32,69,242 crores b) Rs.28,18,671 crores
c) Rs.32,85,877 crores d) Rs.33,25,290 crores
3 Net profit for the year ended 31.03.2023 is
a) Rs.50,410 crores b) Rs.50,488 crores
c) Rs.31,676 crores d) Rs.50,232 crores
4 SBI’s Gross NPA level as at the end of Mar 2023
a) 3.97% b) 2.78%
c) 5.15% d) 4.53%
5 SBI’s Net NPA level as at the end of Mar 2023
a) 1.02% b) 0.67%
c) 0.80% d) 2.23%
6 Expenses to Income (Operating Expenses to Total Net Income) Ratio for FY
2023 was
a) 50.18% b) 53.60%
c) 53.87% d) 53.31%
7 Profit Per employee (ìn 000) for FY 2023 was
a) 1292.72 b) 212.64
c) 2322.59 d) 1988.14
8 Capital Adequacy Ratio (Under BASEL III) of State Bank of India stood at _____
at the end of March 2023.
a) 13.68% b) 14.12%
c) 14.68% d) 12.94%
9 Total number of branches in SBI as on 31.03.2023
a) 22,141 b) 22,219
c) 22,986 d) 22,405
10 Market Share Deposits and Advances for FY 2022-23
a) 23.29%, 19.77% b) 22.84%, 19.69%
c) 22.99%, 19.68% d) 24.92%, 32.55%
11 What is the Market share of SBI in Mobile Banking Transactions for FY 2022-23
a) 26.25% b) 29.90%
c) 20.89% d) 18.50%
12 What is the Market Share in Remittances
a) 26% b) 25%
c) 30% d) 15%
13 Our Bank declared a dividend of Rs. ___ per equity share for FY 2022-23
a) 11.70 b) 11.30
c) 7.70 d) 15.30
14 Bank’s current Stake in SBI Life for FY 2022-23
a) 62.10% b) 57.60%
c) 55.45% d) 45.17%
39
15 Share of SBI in SBI Cards & Payment Services Pvt ltd for FY 2022-23
a) 69.39% b) 68.98%
c) 86.18% d) 69.51%
16 SBI’s share in SBI Mutual Fund Trustee Company Pvt Ltd for FY 2022-23
a) 45% b) 100%
c) 86.18% d) 62.10%
17 Bank’s Home Loan Portfolio for FY 2022-23
a) 6,03,779 Cr b) 6,40,680 Cr
c) 5,05,620 Cr d) 2,67,614 Cr
18 Gross Advances of our Bank grew at ___during FY 2022-23
a) 15.10% b) 14.89%
c) 15.99% d) 14.11%
19 Aggregate Deposits of the Bank for FY 2022-23 grew at the rate of
a) 9.19% b) 12.90%
c) 9.87%% d) 10.60%
20 Total number of ATM’s, CDM’s, Recycler in our Bank as on March 2023
a) 60,541 b) 62,414
c) 62,617 d) 65,627
21 Market share of our Bank in Debit card spends as on March 2023
a) 29.32% b) 26.25%
c) 27.83% d) 45.23%
22 Functionality of Video Life Certificate was launched by our Bank ____
a) November 2021 b) November 2020
c) October 2021 d) October 2020
23 Bank was awarded CDP Score of ____, the highest score in last 5 years by CDP
(formerly Carbon Disclosure Project)
a) B b) C
c) A d) AAA
24 SBI was awarded _______ under category “Best Learning Management
System” for Gyanodaya e learning and askSBI by ET HR World Future Skill
Awards
a) Silver b) Gold
c) Bronze d) Platinum
25 On recommendations of _________ Committee and through passing of an Act
in Parliament, Imperial Bank of India was renamed as State Bank of India on
1st July 1955
a) Gorewala b) Hilton Young Mission
c) Kelkar d) Ranganathan
26 SBI's Registered Office is in_________
a) Kolkata b) Mumbai
c) Chennai d) New-Delhi
27 Corporate Centre is headed by
a) Chief Financial officer b) Chief Vigilance Officer
c) Chairman d) Chief Technological officer
28 CASA ratio of the Bank as on Mar 2023
a) 43.80 b) 45.28
c) 40.80 d) 46.62
29 Chief Vigilance Officer (CVO) reports to
40
a) DMD & CDO b) DMD & CFO
c) Chairman d) MD & CCRO
30 Strategic Training Unit (STU) is headed by
a) DMD b) CGM
c) CTO d) All the above
31 Retail & Digital Banking Group Comprises of ____ Circles
a) 13 Circles b) 17 Circles
c) 16 Circles d) None of the above
32 _____ % of new SB A/c have been opened digitally through YONO
a) 64% b) 73%
c) 48% d) 96%
33 Circle Management Committee (Cir MAC) is presided by ____
a) CGM b) GM
c) DGM&CDO d) DGM(CFO)
34 BPR is introduced as per the recommendations of which consultancy
organization
a) Rangarajan Committee b) Narasimham Committee
c) McKinsey & Co d) Tata Consultancy Services
35 Stressed Assets Management Group (SAMG), has been set up to take over all
NPAs with outstanding of Rs.___crore and above.
a) 10 b) 20
c) 25 d) 50
36 Bank recorded a growth of ______ % in YONO registration
a) 10% b) 20%
c) 50% d) 25%
37 Which is the unit set up by Bank which performs the various services like
receiving voice calls, emails, letters, complaints from the customers etc.,
a) Liability Centralised Processing b) Contact Centre
Center
c) Complaint Centre d) Outbound Sales Force
38 What is the role of Document Archival Centre (DAC) under BPR?
a) Decongest the Branches by b) Execution of Bank's Loan Documents
removing records maintenance
c) Printing of Bank's Loan Documents d) None of these
39 Which of the following committee will look into and manage the reduction of
liquidity and interest rate risk and optimization of returns?
a) Asset Liability Management b) Inspection and Audit Management
Committee System
c) Bank Risk Management d) Corporate Risk Mitigation
Committee Department
40 Which one of the following is not a Business Group
a) Retail & Digital Banking Group b) Global Banking
c) Commercial Clients Group d) None of the above
41 Number of CSPs as on 31.03.2023
a) 76,089 b) 65,627
c) 80,089 d) 66,089
41
42 SBI has presence in _______ number of countries as on March 2023
a) 29 b) 33
c) 30 d) 17
43 Share of Women Employees in FY 2023
a) 26.78% b) 24%
c) 33.33% d) None of these
44 All State Bank employees, who joined after are covered under NPS.
a) 01.07.2010 b) 01.04.2010
c) 01.08.2010 d) 01.01.2010
45 Bank’s Risk Awareness Day
a) 1st August b) 26th January
c) 2nd November d) 1st September
46 KYC Awareness Day
a) 1st August b) 1st September
c) 2nd November d) 30th November
47 Computer Security Awareness Day
a) 1st August b) 1st September
48 AML CFT Awareness Day
a) 1st July b) 1st September
49 Stressed Assets Resolution Group (SARG), has been set up to take over all NPAs with
outstanding of Rs.____lakhs and above.
a) 10 b) 20
c) 25 d) 50
ANSWERS
QN 1 2 3 4 5 6 7 8 9 10
ANS d a d b b c b c d c
QN 11 12 13 14 15 16 17 18 19 20
ANS c a b c b b b c a d
QN 21 22 23 24 25 26 27 28 29 30
ANS b a a b a a c a c b
QN 31 32 33 34 35 36 37 38 39 40
ANS b a a c a a b a a d
QN 41 42 43 44 45 46 47 48 49
ANS a d a d c b
Back to Index page

42
KYC, AML and CFT
KYC Know Your Customer

FATF Financial Action Task Force
AML Anti-Money Laundering
PMLA Prevention of Money Laundering Act
CFT Combating Financing Terrorism
CDD Customer Due Diligence
KYC Policy is reviewed every year by Reserve Bank of India on 1 st July.

The four Key elements of KYC Policy are:
1. Customer Acceptance Policy
2. Customer Identification Procedure
3. Monitoring of Transactions
4. Risk Management
For establishing an account-based relationship following
documents/ information shall be obtained from the individual:
a. PAN/ Form 60: Permanent Account Number or Form No. 60
b. Officially Valid Documents (OVDs): Certified copy of an OVD
1. The Passport
2. The Driving Licence
3. Proof of possession of Aadhaar number
4. The Voter's Identity Card issued by the Election Commission of India
5. Job card issued by NREGA duly signed by an officer of the State Govt
6. Letter issued by the National Population Register
containing name and address.
Central KYC Records Registry (CKYCR) receives, stores, safeguard and retrieve the KYC
records of a customer in digital form. Government of India has authorized the Central
Registry of Securitization Asset Reconstruction and Security Interest of India
(CERSAI), to act as, and to perform the functions of the CKYCR.
Bank is required to file the electronic copy of the Customer's KYC records/data (Customer
information, Photograph, Signature, KYC Documents) with the Central KYC Records
registry (CKYCR) within 3 days after the commencement of an account-based
relationship with a customer.
43
The five types of transactions that needs to be reported are:

1 Cash Transaction Reports (CTRs) Of value of more than Rs.10 lacs or its
equivalent in foreign currency.
2 Counterfeit Currency Reports All cash transactions where forged or
(CCRs) counterfeit currency notes or bank notes
have been used as genuine.
3 Suspicious Transaction Reports All suspicious transactions, whether or not
(STRs) in cash, made as mentioned in PMLA
Rules.
4 Non Profit Organisations Of value of more than Rs.10 lacs or its
Transaction Reports (NTRs) equivalent in foreign currency.
5 Cross Border Wire Transaction Of value of more than Rs.5 lacs or
Reports (CBWTRs) its equivalent in foreign currency.
Preservation of records:
Bank shall maintain records of the identity and address of their customer, and records in
respect of transactions, in hard or soft format, for both domestic and international, for at
least five years from the date of transaction.
Customer Risk Categorisation enables a bank to follow a risk-based approach on

AML/CFT. For proper risk assessment of business relationship with customers and
evolving suitable monitoring mechanism, all customers, individuals and nonindividuals
are to be categorised as High, Medium and Low risk.
Risk categorisation shall be undertaken based on parameters such as customer's identity,

social/financial status, nature of business activity, and information about the clients'
business and their location etc.
Periodic updation of KYC shall be carried out at least once in every:
High risk customers 2 years

Medium risk customers 8 years
Low risk customers 10 years
Prevention of Money-laundering Act, 2002 (PMLA-2002)

➢ The principal legislation for creating an Anti-Money Laundering framework in
India.
➢ With the combined application of sections 15, 17, 40 & 51A of the Unlawful
Activities (Prevention) Act, 1967 (UAPA),
➢ Bank’s Obligations under PMLA, 2002 is Maintain a record of all transactions,
furnish information, Verify the identity of its clients, Identify the beneficial owner,
Maintain record of documents ( soft or hard copy – Min of 5 years)
44
FIU-IND
➢ The FIU-IND is also responsible for coordinating and strengthening efforts of
national and international intelligence, investigation, and enforcement agencies
in pursuing the global efforts against money laundering and related crimes.
➢ FIU-IND is not a regulatory authority.
➢ prime responsibility is to gather and share financial intelligence in close
cooperation with the regulatory authorities including RBI, SEBI and IRDA.
➢ The FIU-IND reports to the Economic Intelligence Council (EIC) headed by the
finance minister
Trade Based Money Laundering
Some commonly used techniques of Money Laundering through Trade
Bank has identified 27 Red Flag Indicator ( RFI) in TBML
Shell Companies: normally have no physical presence, have hidden owners, and
sometimes project the image of being a real, normal business entity dealing in funds
that are legitimate.
Money Mules: “Money Mules” can be used to launder the proceeds of fraud schemes
(e.g., phishing and identity theft) by criminals who gain illegal access to deposit
accounts
by recruiting third parties to act as “money mules.
Foreign Contribution Regulation Act (FCRA) – 2010
➢ prior permission of the Central Government before accepting any foreign
contribution.
➢ account has to be opened exclusively in New Delhi Main Branch
➢ No funds other than foreign contribution can be received or deposited in any
Such account
45
KYC/AML/CFT/FATCA
1. What is True about ’Subjective STRs’?

Subjective STRs are escalated based on alerts or information received
from Branches/staff/media reports/law enforcement agencies etc
2. What is full form of CFT? Combating the financing of terrorism
3. What is a Shell company?
Shell companies normally have no physical presence, have hidden
owners, and sometimes project the image of being a real, normal
business entity
4. Each Business Group/Circle/SBU designates an official to ensures proper
implementation of KVC/AML/CFT Policy in the Group/Circle/SBU and to report
to the Principal Officer (AML-CFT). What is the designation of such designated
official?
Money Laundering Reporting Officer (MLRO)
5. Which international agency sets standards and guidelines to combat money
laundering to be followed by its member jurisdictions? FATF
6. MHA has advised to attend the complaints escalated thorough above modes on
24 by 7 basis to provide swift resolution and to curb the movement of funds
immediately
all the Banks/Financial Institutions
7. Over-invoicing (Short shipping) is one of the techniques of Money Laundering
through Trade transactions. In this technique the price of the good or service
is misrepresented in the invoice by exporter/ seller, by way of
Increasing the price above the ’fair market’ price
8. ____ Ministry of Home Affairs (MHA) __has launched a national helpline
number 155260 and rolled out https://cybercrime.gov.in portal for reporting
the financial cybercrime frauds by the victims
9. How can the operations in the accounts of money mules be minimized in banks?
The operations of such mule accounts can be minimized by following
the guidelines on opening of accounts and monitoring of transactions.
10. Is there any Penalty for any deficiency in filing the mandatory reports by
reporting entities to FIU-IND?
Any deficiency in filing the mandatory reports by reporting entities
will attract minimum penalty of Rs. 10,000/- which may go to
Rs.1,00,000/- per instance per day.
11. What is the designated role of DGM (B&0) as per the 'AML/CFT
STRUCTURE in our BANK'?
Dy. MLROs
12. Who reports the prescribed transactions to FIU-IND on behalf of the bank?
Principal Officer
13. What is the threshold limit of transactions to be reported under Cross-Border
Wire Transfer Report?
Transactions of the value of more than Rs 5,00,000 or its equivalent
in foreign currency
14. The dedicated AML-CFT department of our Bank is situated in city? Jaipur
15. AGM Regions/Branch Heads / Heads of the CPCs- are responsible for reporting
of suspicious transactions passing through their units. What is the designated
46
role of AGM Regions/Branch Heads / Heads of the CPCs as per the 'AML/CFT
STRUCTURE in our BANK'? Assistant MLROs
16. Customer risk categorization (CRC) is carried out by AML-CFT Department at
pre-defined periodicity. Which of the following option regarding periodicity is
not correct?
CRC is done at half-yearly intervals typically as on 31st March and
30th September every year or in between if the need arises.
17. As per the RBI guidelines, what is the Periodicity of review of Customer Risk
Categorisation (CRC)?
Review of risk categorization of customers should be carried out at a
periodicity of not less than once in six months.
18. What is the prescribed periodicity of reporting eligible transactions under
CBWTR?
The eligible transactions under CBWTR are to be reported on monthly
basis by 15th day of the succeeding month.
19. To facilitate proper monitoring of transactions by Money Laundering Reporting
Officers (MLROs), as per reporting structure that has been put in place, who is
designated as Dy MLRO?
Dy. General Manager (Business & Operations)
20. MHA has advised ______________ to attend the complaints escalated
thorough above modes on 24 by 7 basis to provide swift resolution and to curb
the movement of funds immediately
All the Banks/Financial Institutions
21. Who are nominated as MLROs at Circle level as per the 'AML/CFT STRUCTURE
in our BANK' ?
DGMs & CFOs
22. What is Trade Based Money Laundering or TBML?
TBML is the process of disguising the proceeds of crime and moving
value using trade transactions to legitimize their illicit origins
23. What is the periodicity of Customer Risk Categorisation (CRC) for Medium risk
individuals and entities?
Every 8 Years
24. Suspicious Transactions Reports (STRs) can be classified into two following
broad categories that is_______________, based on the source of the alert
which resulted in escalating such STRs
System Generated STRs & Subjective STRs
25. For Risk management, Bank has adopted a _____________as per RBI
Guidelines?
Risk Based Approach
26. Which transactions are reported under CTR?
All cash transactions of the value of more than rupees ten lakhs or its
equivalent in foreign currency.
27. Each Business Group/Circle/SBU designates an official to ensures proper
implementation of KYC/AML/CFT Policy in the Group/Circle/SBU and to report to
the Principal Officer (AML-CFT). What is the designation of such designated
official
Money Laundering Reporting Officer (MLRO)
28. Which is correct about the Egmont Group?
47
It is a united body of Financial Intelligence Units (FIUs) of different
countries.
29. What is meant by 'Layering' process in Money Laundering Process?
Separation of illicit proceeds from their original sources and beyond
the grasp of local law enforcement agencies by layering of financial
transactions with the intention to conceal the origin of the proceeds
30. What is the prescribed periodicity of reporting eligible transactions under STR?
The eligible transactions under STR are to be reported on as and when
detected basis within 7 working days on being satisfied that the
transaction is suspicious.
31. Under-invoicing (Over-shipping) is one of the techniques of Money Laundering
through Trade transactions. In this technique the price of the good or service is
misrepresented in the invoice by exporter/ seller, by way of
Decreasing the price below the 'fair market' price.
32. AGM Regions/Branch Heads / Heads of the CPCs- are responsible for reporting
of suspicious transactions passing through their units. What is the designated
role of AGM Regions/Branch Heads / Heads of the CPCs as per the 'AML/CFT
STRUCTURE in our BANK'?
Assistant MLROs
33. Can a Current account be opened in such situation where it is not possible for
the proprietor to furnish more than one document in the name of the firm?
If Bank is satisfied, branch can accept only one document in the name
of the firm subject to Contact point verification
34. What is the maximum period for which a small account can remain operational,
without production of any of OVD?
For a period of twenty-four months from the date of opening of
account or creation of CIF, whichever is earlier
35. Branches/offices shall undertake Customer Identification while selling third-
party products as agents, selling our own products, payment of dues of credit
cards/ sale, and reloading of prepaid/ travel cards and any other product. Which
of the following option is correct in this regard?
CIP to be undertaken while selling of third-party products as agents,
selling our own products, payment of dues of credit cards/sale and
reloading of prepaid/travel cards and any other product for more than
Rs. 50,000/-.
36. Banks should have a policy duly approved ___________, for approving
'correspondent banking relationships'.
By the Board of the Bank
37. What are the stipulated monthly and annual limits on aggregate of transactions
and balance requirements in Small accounts?
The aggregate of all credits in a financial year not to exceed rupees
one lakh, the aggregate of all withdrawals and transfers in a month
not to exceed rupees ten thousand and the balance at any point of
time not to exceed rupees fifty thousand.
38. Bank observes ______________ every year as AML/ CFT Awareness Day
2nd November
39. As per RBI guidelines in respect of Video-CIP, the process will be a operated by
a specially trained _________________for performing the V-CIP.
Bank official
48
40. Services of Business Correspondents (BCs) may be used for aiding the Video-
CIP at ________________ end
Customer
41. All accounts opened through Video -CIP are made operational only after being
subject to ____________________, to ensure the integrity of process.
concurrent audit
42. Accounts opened based on V-CIP or Video KYC are to be treated as face to
face
43. In our Bank which number is used as UCIC? Customer Information File
(CIF)
44. As per RBI Guidelines on dealing in Virtual Currencies (VC) in India, which of
the following statement is correct as per Customer Acceptance Policy (CAP)?
As per RBI Guidelines, Bank shall not deal in Virtual Currencies (VC)
or provide services for facilitating any person or entity in dealing with
or settling VCs
45. Bank observes ______________ every year as KYC Compliance and Fraud
Prevention Day so that KYC/AML/CFT compliance related issues are kept in
focus on an ongoing basis .
1st August
46. What is the major risk of non-compliance with the KYC Policy?
Compliance and Legal Risk
47. OFAC, FATCA means
Office of Foreign Asset Control, Foreign Account Tax Compliance Act
48. How many countries are there in FATF Block list and Grey list?
13 Countries in Block list and 23 Countries in Grey list
49
1. In Case of SHGs which of the following is correct?

i. CDD of all the members to be done while opening the account.
ii. Separate CDD should be done at the time of credit linking of SHGs.
A. Only i
B. Only ii
C. Both i&ii
D. None of i & ii are correct
2. Which one of the following is not an Officially Valid Document” (OVD)?

a. The Voter's Identity Card issued by the Election Commission of India,
b. Letter issued by the National Population Register containing details of name and
address.
c. Job card issued by NREGA duly signed by an officer of the State Government.
d. Landline Telephone Bill.
3. Full form of CIDR

a. Central Identities Documents Repository
b. Central Identities Data Repository
c. Central Identification Documents Repository
d. Central Identification Data Repository
4. Who is Beneficial owner in case of Trust ?

i. Beneficiaries with more than 10 % or more interest in the trust
ii. The Author
iii. The trustee
A. i only
B. i and ii
C. All the above
D. i and iii
5. Under KYC/AML/CFT/Fraud prevention measures, observance of KYC

compliance and fraud prevention day is observed on__
a. 1st August b. 5th August c.1st September d.5th September
6. In an OVD of a lady there is change in the name subsequent to its

issuance due to her marriage. Will it be accepted?
A. No, fresh document should be obtained
B. Yes, if it is supported by a marriage certificate issued by the State
Govt or gazette notification
C. Yes, Based on declaration from the customer.
D. No, Documents issued after marriage will only be accepted
7. Biometric Information as defined in the section 2 (g) of the Aadhar Act,means

a. Photograph b. Fingerprint c. Iris scan d. All the above
8. Regular monitoring of transactions in accounts to ensure that they are

consistent with the customers’ profile and source of funds is
a. Mandatory Due Diligence b. Customer Due
50
Diligence
c. Ongoing Due Diligence d. One time Due
Diligence
9. Where the customer is a partnership firm, the beneficial owner is the natural
persons (s) who, whether acting alone or together has/have ownership of/entitlement
to more than ____ percent of capital or profits of the partnership.
a.50 b.15 c. 10 d. 25
10. Facilities/Restrictions in 'Small account' includes

a. The aggregate of all credits in a financial year does not exceed rupees one lakh
b. The aggregate of all withdrawals and transfers in a month does not exceed rupees
ten thousand
c. The balance at any point of time does not exceed rupees fifty thousand.
d. All the above
11. Branches may open ________bank account in favour of foreign students

studying in India.
a. SB b. NRO c.CA d. NRE
12. Counterfeit Currency Reports should be submitted to: -

a. LHO KYC Deptt b. Controlling Office c. FIU-IND d. None of the above
13. Politically Exposed Persons are:

a. Individuals who are or have been entrusted with prominent public function in a
foreign country
b. MLAs and MPs
c Individuals related to a political party
d. All the above
14. Cash Transaction Reports (CTRs) are required to be compiled by

branches and submitted to Controllers for onward transmission to FIU-IND at
intervals.
a. Weekly b. Fortnightly c. Monthly d. Bimonthly
15. During the 30 days period, the NRO account of foreign students may be
operated with a condition of allowing foreign remittances not exceeding USD_____
into the account and a cap of monthly withdrawal to Rs.______, pending verification
of address.
a. 1000, 50000
b. 10000, 50000
c.10000, 1000
d. 5000, 50000
15. Individuals with total deposits of Rs.1.50 Crores or more are categorized as__
risk customers.
a. HIGH b MEDIUM c. LOW d None ofthese
16. Individual Account holder with Credit/debit summations of Rs.2.00 crores &
more per annum are categorized as risk customers.
a. HIGH b. MEDIUM c. LOW d.None of these
17. New accounts of individuals opened under Low Risk while on boarding,
during first ___ days of opening the account are classified as medium risk.
51
a. 90 b. 180 c.60 d. 365
18. Non-Individual accounts with credit/debit summations of Rs.1.5 crore p. a.

is classified as _____ risk account.
a. HIGH b.LOW c. MEDIUM d. Anyone
19. In case of Trust Account, KYC compliance will be ensured by obtaining verified
copies of
a. Registration certificate b. Trust deed
c. An officially valid document in respect of the person holding power of attorney to
transact on its behalf
D. All the above
20. Bank has decided to fix following thresholds, subject to review from time
to time, for filtering transactions and generating STR alerts for customer accounts.
a. Low Risk: 50.00lac b. Medium Risk: 30.00 lac
c. High Risk: 10.00lac d. All of these
21. "Non-Profit Organization" (NPO) means

a. Any entity or organization that is registered as a trust or a society under the
Societies Registration Act, 1860
b .A company registered under section 25 of the Companies Act, 1956
c. Both A & B
d. None of the above
22. Central KYC Records Registry (CKYCR) has been set up by the Govt Of
India in association with(as a NODAL AGENCY)
a. CERSAI b. SEBI c. NPCI d.CCIL
23. Branches are to rely upon the Guardianship Certificate issued by for the purpose
of opening / operating accounts of persons with mental disabilities.
a. The District Court under Mental Health Act
b. The Local Level Committees under Mental Health Act
c. Either a or b
d.Only a
24. Sale of gold coins of value Rs.____ and above against cash is not permitted.
a. 50000 b 20000 c 100000 d.150000
25. RBI has stipulated that banks should impose 'partial freezing' on KYC non
compliant accounts in a phased manner. Here 'partial freezing' means
a. Restricting debit & credit transactions b. Restricting credit transactions
c. Restricting debit transactions d. None of the above
26. To comply with the revised RBI guidelines, it is necessary that two notices be
sent to the KYC non-compliant account holders afresh with a response time of
____month(s) each.
a. 3 b. 2 c.1 d. Half
52
Documents are to be obtained from Individual Customers while doing their KYC
updation:
• No change in KYC Information Annexure-A
• Change only in Address Details Annexure-C and OVD with
Current Address.
• Change in KYC Information Annexure-B, along with OVD
and Photograph.
• Accounts of customers who were minor at the time of
opening account on their becoming major Annexure-B, OVD
and Photograph.
Documents are to be obtained from Non-Individual Customers while doing their KYC
updation:
• Document to be obtained No change in KYC Information
Annexure-D
• Change in KYC Information Annexure-E and KYC documents
are as per the current Customer Due Diligence.
Who is the Beneficial Owner when no natural person is identified as per

the given rules?
Where no natural person is identified for a Company/Partnership Firm/ Unincorporated
Association, the beneficial owner is the relevant natural person who holds the position of
senior managing official.
Beneficial Owner by shareholding pattern:

- Holding of 10% or more shares of Trust, Company and Partnership firms.
- Holding of 15% in other cases.
53
KYC, AML/CFT, FATCA, CRS - 1
1 Money laundering has been defined in __________

a) Section 1A of PMLA 2002 b) Section 5B of FEMA
c) Section 3 of PMLA 2002 d) Section 5C of FEMA
2 As per section 12 of PMLA, period of maintaining a record of prescribed
transaction is __________ years from the date of transaction.
a) 5 b) 10
c) 15 d) 20
3 As per section 12 of PMLA period of retention of record in relation to KYC is
a) 5 Years from the date of relationship b) 5 Years from the date of cessation of
relationship
c) 10 Years from the date of d) 10 Years from the date of cessation of
relationship relationship
4 Which one is not a key element of KYC policy
a) Introduction of customer b) Customer acceptance policy
c) Monitoring of Transaction d) Risk Management
5 _________ is to be opened in anonymous or fictitious/benami name(s)/entity (ies).
a) Only Current Account b) Only Tiny Saving Bank Account
c) Only FCNB deposit d) None
6 Accounts of persons having relationships with banned entities such as individual
terrorists or terrorist organizations etc. are __________
a) to be opened only after controller’s b) to be opened only after RBI approval
permission
c) Not to be opened d) to be opened as non-interest-bearing
current account
7 Accounts of persons who have been convicted and are lodged in jails can be
opened, with suitable safeguards decided on case to case basis, jointly with ___
Relative residing outside jail the Superintendent of the respective Jail
should be only in the sole name of Spouse
convict
8 Which one is not a OVD?
a) Passport b) Driving License
c) Voter ID d) Employee ID card
9 The unique customer identification code used in our bank is called________
a) Customer Information form b) Customer Information File
c) Customer Identification File d) Customer Identification form
10 For opening account of a company, which document is not a necessary
document?
a) Board Resolution b) Memorandum of Association
c) Article of Association d) Pan card of Major share holder
11 Which one is not a category for classification of customer depending upon risk?
a) Low risk b) Medium Risk
c) High Risk d) Very High Risk
12 What is the frequency for updation of KYC in case of low risk customer
a) 2 year b) 5 year
c) 8 year d) 10 year
54
13 What is the frequency for updation of KYC in case of Medium risk customer
a) 2 year b) 5 year
14 What is the frequency for updation of KYC in case of High-risk customer
a) 2 year b) 5 year
15 Politically exposed person of foreign origin should be classified under which
risk?
16 As per FATCA, Reporting Financial Institutions had to register with _____ and
obtain a Global Intermediary Identification Number (GIIN).
a) CBDT b) US IRS
c) US Government d) IMF
17 India has signed Inter-Governmental Agreement (IGA) with USA on _____
a) 9th July 2016 b) 10th July 2015
c) 10th July 2016 d) 9th July 2015
18 India has also signed a multilateral agreement, called CRS on 3rd June, 2015.
What does CRS stand for?
a) Common Reporting Standard b) Customer reporting standard
c) Client reporting standard d) Common reporting scheme
19 NRI customer will be classified as _____ for KYC updation.
20 For compliance of FATCA, the data will be exchanged with US department ____
a) Directly by respective bank b) Through RBI
c) Through CBDT d) Through FIU - IND
21 CERSAI stands for?
a) Central Registry of Securities, Asset b) Central Registry of Securitisation, Asset
Reconstruction and Security Interest Reconstruction and Security Interest of
of India India
c) Central Registry of Securitisation, d) Common Registry of Securitisation, Asset
Asset Restructuring and Security Reconstruction and Security Interest of
Interest of India India
22 Who will finalize the decision regarding filing of STR to FIU-IND?
a) Branch Manager b) Regional Manager
c) CGM of circle d) Principal Officer AML/CFT
23 Where does AML/CFT cell situated?
a) Corporate Centre, Mumbai b) Delhi
c) Jaipur d) Kolkatta
24 The BM to certify in the ____- that compliance of KYC/AML/CFT guidelines has
been done.
a) Annual Return b) BMMC
c) Self-Audit d) Inspection report
25 As per AML guidelines, which are the reports to be submitted for monitoring of
transactions?
a) Cash Transaction Report b) Suspicious Transaction Report
c) Non-profit organization transaction d) All of the above
report
55
26 Suspicion transaction report can be filed on the basis of ____
a) Manual identification of suspicious b) Automatic identification by CBS
transaction
c) Both the above d) No need to report
27 As per provisions of PML Act, any deficiency in filing the mandatory reports by
reporting entities will attract minimum penalty of Rs.___ which may go to
Rs._____per instance per day.
a) 5000/- & 50000/- b) 10000/- & 100000/-
c) 20000/- & 200000/- d) 25000/- & 100000/-
28 Account of NGO promoted by United Nations will be classified as
a) High Risk b) Low Risk
c) Medium Risk d) No Risk
29 Re-KYC of Non-Individual account holders with credit debit summations of
Rs.2.00 crores to below Rs.10.00 Crores per annum should be done in _______
a) 2 years b) 8 years
c) 10 years d) 5 years
30 Account of venture capital fund will be classified as___
a) Low risk b) High risk
c) Medium Risk d) No Risk
31 Frequency of Re-KYC for account operated by power of attorney holder is___
a) 2 years b) 5 Years
c) 8 Years d) 10 Years
32 Which of the followings is the supplier of the "Anti Money Laundering"
software?
a) M/S G.E. Capital b) TCS Limited
c) 3i Infotech d) IDRBT
33 Accounts of Non face to face customers can be opened by a bank on the basis
of ID & Residential proof certified by____
a) Notary Public b) Official of Indian Embassy
c) Consulate General d) All of the above
34 The abbreviation of TBML is____
a) Trade Bill Money Laundering b) Trade Based Money Laundering
c) Transaction Based Money d) Tired Business Money Laundering
Laundering
35 Who enlists the format of CTR?
a) Ministry of Finance b) Concerned Banks
c) RBI d) IBA
36 FATF located at_____
a) Mumbai b) Jaipur
c) Paris d) New York
37 Maximum punishment by the way of imprisonment of offence committed under
Money Laundering act is ____ years.
a) 3 b) 5
c) 10 d) 12
38 When did India became full time membership of FATF?
a) 1989 b) 2002
c) 2010 d) 2012
56
39 FATF is an initiative of____
a) BASEL committee b) G-7 Summit
c) UNO recommendation d) None of the above
40 Phantom or Ghost Shipment means___
a) Overvalue of shipment b) Creating documents for non – existent
shipment
c) Mis representing the value and price d) Shipment of defected goods
of the shipment
41 Primary responsibility of ensuring KYC compliance in respect of all accounts
maintained with BCs including review of KYC, risk categorization, monitoring
of transactions etc. will rest with the
a) CSP b) Manager/ CM (FI) posted at RBO
c) Home (Parent) Branch d) CM / AGM (FI) posted at AO
42 The ___is authorized for deciding on whitelisting of accounts for STR alert
generation including change in time parameter.
a) Authorised officer of RBI b) GM & Principal Officer (AML/CFT)
c) Branch Manager of SMGS IV/ AGM d) DGM (B & O)
43 Banks are required to file the electronic copy of the Customer’s KYC records/data
(Customer information, Photograph, Signature, KYC Documents) with the Central
KYC Records registry (CKYCR) within days after the
commencement of an account-based relationship with a customer.
a) 2 days b) 7 days
c) 3 days d) Next day itself
44 Cross Border Wire Transaction Reports (CBWTR), the value of more than ______
rupees or its equivalent in foreign currency where either the origin or destination
of fund is in India to be reported.
a) Rs. 1,00,000 /- b) Rs. 10,00,000 /-
c) Rs. 5,00,000 /- d) Rs. 50,000 /=
45 Name the Customer Identification Process recently notified by undertaking

consent based audio-visual interaction with the customer to complete
Customer Due Diligence (CDD) procedure
a) V-CIP b) V- KYC
c) V-CIF d) V-CDD
46 Which one of the following is not one of the Red Flag Indicators(RFI) to detect
TBML in regard to customer profile?
a) The customer avoids or does not co- b) The customer is overly keen to waive
operate in CDD procedures discrepancies
c) The transaction commensurate with d) The customer significantly deviates from
known customer profile, structure or his historical pattern of trade activity
business
47 Where the client is a trust, the Bank, shall identify the beneficial owners of the
client and take reasonable measures to verify the identity of such persons,
through the identity of the settler of the trust, the trustee, the protector, the
beneficiaries with …... or more interest in the trust
a) 25 b) 15
c) 10 d) 5
57
48 Information accompanying all domestic wire transfers of Rs. ______ and above
must include complete originator information
a) 50,000 /- b) 1,00,000 /-
c) 5,00,000 /- d) USD 50,000
49 The FIU-IND reports to _____
a) RBI b) FIU-IND
c) Finance Minister d) Economic Intelligence Council(EIC)
50 Which of the following is the supplier of the "Anti Money Laundering" software?
a) M/s G.E. Capital b) TCS
c) 3i Infotech d) RBI
ANSWERS - 1
Q 1 2 3 4 5 6 7 8 9 10
ANS C A B A D C B D B D
Q 11 12 13 14 15 16 17 18 19 20
ANS D D C A C B D A C C
Q 21 22 23 24 25 26 27 28 29 30
ANS B B C B D C B B B C
Q 31 32 33 34 35 36 37 38 39 40
ANS A C D B C C C C B B
Q 41 42 43 44 45 46 47 48 49 50
ANS C B C C A C B A D C
Back to Index page

58
KYC, AML/CFT, FATCA, CRS – 2
1 Obligations on the Bank are placed under Section of the Prevention of

Money Laundering Act, 2002
a) Section 3 b) Section 7
c) Section 9 d) Section 12
2 Which of the following obligations on the Bank placed by the Prevention of
Money Laundering Act, 2002 are wrong
a) maintaining a record of prescribed b) furnishing information of prescribed
transactions transactions to the specified authority
c) verifying and maintaining records d) preserving records in respect of
of the identity of its clients and prescribed transactions and furnishing
identifying the beneficial owners, if information to the specified authority
any, of such clients for a period of ten years from the date
of transactions, and for eight years in
respect of identity of its clients and
beneficial owners after the
cessation of relationship.
3 For customer identification in a partnership firm, certified copy of which of the
following documents is not required
a) Registration Certificate b) Certificate of Incorporation
c) Partnership deed d) An officially valid document in
respect of the person holding
power of attorney to transact on its
behalf.
4 Customer Profile of individual account holders should be compiled
covering the following information in the account opening forms:
(i) Family details
(ii) Source of funds
(iii) Monthly Income & Annual turnover (in the case of business)
(iv) Date of Birth & Educational qualification
(v) Assets (approx. value) & Details of existing credit facilities, if any
a) i, ii, iii, iv b) i, iii, v, iv
c) i, ii, iii, v, iv d) v, iii, i, ii
5 RBI guidelines on KYC / AML CFT measures stipulate that, transactions of
suspicious nature should be monitored and should be filed as Subjective STRs
with the____
a) Finance Intellectual Unit- India b) Financial Intelligence Unit – India
c) Financial Inclusion Unit- India d) Financial Tech Unit- India
6 Under FATCA, the term “Financial Institution” means
a) a Depository Institution or a b) a Specified Insurance Company
Custodial Institution
c) an Investment Entity d) All of the above
7 Which of the following is NOT true about Phishing
a) it is a social engineering technique b) used for contacting individuals or
businesses to obtain non-
banking/non-financial information
59
c) messages are sent to general d) information is usually used to commit
audience /specific person that look identity theft or financial fraud.
to be sent by a trustworthy source
8 Scrutiny of unusual Cash transactions up to Rs.2,00,000/- & Transfer
transactions up to Rs. 5,00,000/- should be done by at branches/offices on
a daily basis
a) Senior Assistant for transactions b) Special Assistant for transactions
handled by him handled by him
c) Senior Special Assistant for d) Manager of Division /Services
transactions handled by him. Manager / Branch Manager
9 All accounts where STRs have been filed with FIU-INDIA are to be assigned
a) Low Risk b) Medium Risk
c) High Risk d) Risk category need not change
10 Which of the following documents submitted by Persons of Indian Origin (PIO)
and Overseas Citizen of India (OCI) is not acceptable for opening NRO / NRE /
FCNB (B) accounts?
a) Copy of PIO/OCI Card issued by b) Copy of the TIN issued by the
Govt. of India. country of residence
c) Copy of marriage certificate d) Copy of relevant pages of passport of
establishing the spouse as parents or grandparents,
NRI/Indian origin establishing them as NRI/Indian origin
11 Which of the following are not true in respect of Cash Transactions of Rs. 10
lacs and above?
a) Cash withdrawals and deposits for b) For determining “integrally connected
Rs.10.00 lacs and above to be transactions” all accounts of the same
recorded and reported to customer should be taken into
controlling office every month. account.
c) Bank generates monthly CTRs d) Branches extract relevant CTRs
through AMLOCK software at provided by AML/CFT Department,
AML/CFT Cell at Belapur in respect and preserve hard and soft copies
of all such transactions for perusal by internal / external
auditors.
12 The Report regarding US Reportable persons & Other Reportable persons
to CBDT have to be signed by____
a) MD (Compliance & Risk) b) CGM (Compliance & Risk)
c) Principal Officer d) To be furnished electronically only
13 For restricting opening money mule accounts, KYC/AML/CFT Policy based on
guidelines issued by RBI which stipulates:
a) Dispose off records b) Monitoring of transactions at various
levels on the basis of threshold limit
fixed by the branch.
c) ROC search d) None of these
14 The foreign NGOs, which have been put under ‘Prior approval category
(PAC)’, can receive foreign contribution only after taking prior permission
from
a) IRDA b) Reserve Bank of India
c) SEBI d) Ministry of Home Affairs,
Government of India.
60
15 After the launch of National Voters’ Service Portal, genuineness of a voter ID
card can be ascertained by visiting
a) http://electoralsearch.in/. b) http://election.ind
c) http://voterid.co.in d) http://voteforindia.co.in
16 UAPA means
a) Unusual Activities Prevention Act b) Unsuspectful Activities Protection
Act
c) Unlawful Activities Prevention Act d) Unauthorised Activities Prevention
Act
17 An account reportable to a country or territory outside India other than US is
termed as
a) FATCA b) Other Reportable Account (CRS)
c) Non Reportable Account d) None of the above
18 Which of the following statements are wrong in the process of closing a non-
KYC compliant account?
a) Give due notice of three months to b) Impose ‘partial freezing’ by allowing
comply with KYC requirements all credits and disallowing all debits
followed by a reminder giving a with the freedom to close the
further period of three months.
accounts.
c) If still KYC non-compliant after d) Bank to close the account of such
twelve months of imposing ‘partial customers after issuing due notice to
freezing’ the accounts should be the customer explaining the
made inoperative. reasons for taking such a decision.
19 Suspicious transaction means a transaction whether or not made in cash
which, to a person acting in good faith –
a) gives rise to a reasonable ground b) appears to make in circumstances of
of suspicion that it may involve the unusual or unjustified
proceeds of crime complexity
c) a or b d) a & b
20 KYC compliance and fraud prevention day observes on
a) 1st Aug b) 1st Oct
c) 1st Dec d) 1st Sept
21 The decision to open an account for a Politically Exposed Person (PEP) is
taken by an official not below the grade of
a) JMGS b) MMGS
c) Senior Management Grade (SMG). d) Any of the above
22 Cross Border Wire Transfer Report (CBWTRs) has to be submitted to FIU IND
when the transfer value is Rs. _ in foreign currency
a) more than five lakh rupees or its b) more than one lakh rupees or its
equivalent equivalent
c) more than ten lakh rupees or its d) irrespective of amount
equivalent
23 HNI Non-Individual Customers having aggregate credit balance =< Rs 500.00
lacs to be categorised as
c) High Risk d) No separate risk category for HNIs
61
24 Unauthorized intrusion into a computer or a network is called
a) Phishing b) Vishing
c) Hacking d) Smurfing
25 Threshold in case of business (But not exceeding Rs. 10.00 Lacs) in CBS
a) Three Month’s Turnover b) Two Month’s Turnover
c) One Month’s Turnover d) One Year Turnover
26 Under FATCA, what is a FFI?
a) Foreign Financial Institutions b) Foreign Financial Intermediary
c) Financial Funding Institutions d) Financial Funding Intermediary
27 Preservation of account opening forms and KYC documents of clients should
be for___
a) Five years from transaction date b) Ten years from transaction date
c) Five years after cessation of d) Ten years after cessation of
relationship with clients relationship with clients
28 NPA Loan Accounts are classified as
a) Low Risk b) High Risk
c) Medium Risk d) Depends on Risk Grade
29 The Financial Intelligence Unit-India (FIU – IND) was set up by the Government
of India in___
a) 2003 b) 2002
c) 2004 d) 1997
30 Which of the following reports to be submitted to FIU-IND, periodicity is NOT in
Monthly intervals
a) Cash Transactions Reports b) Counterfeit Currency Reports
c) Cross Border Wire Transfer Report d) Suspicious Transactions Reports
31 In case of transactions carried out by walk-in customers, customer’s identity and
address should be verified where the amount of transaction equals or exceeds
a) 20000 b) 50000
c) 100000 d) Not required
32 While opening account of Partnership account, COS is taken & for HUF
account COS ____ is taken
a) COS 38, COS 39 b) COS 39, COS 38
c) COS 38, COS 37 d) COS 37, COS 38
33 The NRI student who is pursuing education in India, should submit valid
address proof within days of opening the account.
a) 7 days b) 15 days
c) 30 days d) 6 months
34 Simplified KYC guidelines are applicable for FPIs. What is the full form of FPI?
a) Foreign pursuing Indians b) Foreign portfolio Indians
c) Foreign Portfolio Investors d) Foreign Portfolio Investment
35 The list of high-risk countries is identified by Financial Action Task force and
updated
a) Once in a year b) Twice in a year
c) Thrice in a year d) Quarterly once
36 Find the odd man out in the high-risk category list.
a) Non face-to-face customers b) Firms with sleeping partners
c) Companies having close family d) Stock brokers
shareholding
62
37 The principal officer of the Bank designated for monitoring of anti-money
laundering transactions is
a) General Manager (Network) b) Chief General Manager of the circle
c) Dy.General Manager (AML/CFT) d) General Manager (AML/CFT)
38 Who is MLRO in our Bank for branches in NBG and RBG
a) GM of the network b) DGM & CFO/CCFO in Circles
c) CGM of the circle d) AGM of the RBO
39 Students of nationality will need prior approval of the RBI for opening the
account.
a) Nigeria b) Srilanka
c) Pakistan d) Afghanistan
40 Purposes proposed to be served by the KYC, AML & CFT Policy of the Bank are
a) To facilitate monitoring of b) To file Counterfeit Currency Reports
transactions in Non-Profit in cases of detection of counterfeit
Organisations (NPO) and file NPO currency.
Transactions Reports
c) To enable the Bank to d) To comply with the Banking
know/understand the customers Regulations Act, Companies Act and
and their financial dealings better CBDT regulatory guidelines.
which, in turn, would help the
Bank to manage risks prudently
41 The act of breaking a large financial transaction into a series of smaller
transactions to avoid scrutiny by regulators & law enforcement agencies.
a) Smurfing b) Vishing
c) Layering d) Integration
42 In which stage of Anti Money Laundering, the money launderer introduces
illegal profits into the financial system by breaking up large amounts of cash
into less conspicuous smaller sums that are then deposited directly into a
bank account
a) Placement b) Structuring
43 The process by which criminals disguise the original ownership and control of
the proceeds of criminal conduct by making such proceeds appear to have
derived from a legitimate source.
a) Anti-Money Laundering b) Money Laundering
c) Prevention of Terrorist Activities d) Combating financing of Terrorism
44 In this stage of money laundering, the launderer simply wires the funds through
a series of accounts at various banks across the globe often disguising
them payments for goods or services, thus giving them a legitimate
appearance.
45 In this stage of money laundering, the launderer invests the funds into real
estate, luxury assets, or business ventures etc.
46 Which of the following is NOT true about Money Laundering / Financing of
Terrorism?
63
a) In case of money laundering, the b) In case of terrorist financing funds can
funds are always of illicit origin originate from both legal and illicit
sources.
c) The primary goal of d) The goal of individuals involved in
individuals/entities in financing of financing of terrorism is to conceal the
terrorism is to conceal both the sources of money
financing and nature of the
financed activity.
47 Beneficial Owner means
a) an individual who ultimately owns b) the person on whose behalf a
or controls a client of a reporting transaction is being conducted
entity
c) a person who exercises ultimate d) All of the above
effective control over a juridical
person.
48 The competent authority to permit closure of partially frozen Inoperative accounts
shall be the Branch Head not below the rank of ____.
a) Any BM irrespective of the scale b) MMGS III
c) SMGS IV d) Branch itself cannot close the A/c
49 Under Beneficial Owner, in a partnership firm, the beneficial owner is the
natural person or one or more juridical person, has ownership of/entitlement to
a) more than forty-nine percent of b) more than twenty-five percent of
capital or profits of the partnership capital or profits of the partnership
c) more than fifty percent of capital d) more than Ten percent of
or profits of the partnership capital or profits of the partnership
50 Non-Profit Organization means any entity or organisation that is registered
a) as a company registered under b) as a society under the Societies
Sec 8 of the Companies Act, 2013 Registration Act, 1860
c) As a trust d) Any of the above
51 Politically exposed persons are individuals who are
i. Heads of States or of Governments,
ii. senior government/judicial/military officers,
iii. individuals/entities donated for political parties
iv. senior executives of state-owned corporations,
v. senior politicians/important political party officials
vi. members of regional political party
vii. close relatives of PEPs (for the purpose of risk categorisation)
a) i, ii, iii, iv. v, vii b) i, ii, iv. vi, vii
c) i, ii, iv, v, vii d) i, iii, iv. vi, vii
52 An entity that has no active business and usually exists only in name as
vehicle for another company’s business operations is called___
a) Shell company b) Hoax company
c) Hawala company d) Benami company
53 has developed a series of 40 recommendations that are recognized
as the International Standard for Combating of Money Laundering and the
Financing of Terrorism and Proliferation of Weapons of Mass Destruction.
a) Financial Action Task Force b) The Wolfsberg Group
c) United Nations d) BASEL committee
64
54 The FATF Recommendations were revised most recently in _
a) 1996 b) 2001
c) 2003 d) 2012
55 India has also signed a multilateral agreement on to automatically
exchange information under the Common Reporting Standard (CRS)
a) 23rd June, 2015 b) 3rd July, 2015
c) 3rd June, 2015 d) 23rd July, 2015
56 _ FSRBs have been established for the purpose of disseminating
international standards of FATF throughout the world.
a) Nine b) Ten
c) Five d) Three
57 Common Reporting Standard (CRS), formally referred to as the Standard for
a) Automatic Exchange of Financial b) Automatic Exchange of Foreign
Account Information Account Information
c) Automatic Exchange of Formal d) Automatic Exchange of Foreign
Assets Information Assets Information
58 The united body of 155 Financial Intelligence Units across the world
c) The Egmont Group d) BASEL committee
59 Which of the following is NOT true about Prevention of Money Laundering
Act, 2002
a) impose obligation on banking b) provide for confiscation of property
companies, financial institutions derived from or involved in money
and intermediaries laundering
c) came into force with effect from d) an Act of Parliament
July 1, 2004.
60 Which of the following is NOT true about UAPA
a) It criminalizes terrorist acts and b) It provides for attachment of and
raising of funds for terrorist acts. seizure of properties connected with
terrorist activities or
organisations.
c) The provisions of the act are not d) The Act was amended in 2013 to
applicable if funds are legitimate make it more effective and meet
the FATF standards.
61 Which of the following is NOT true about Financial Intelligence Unit-India
a) responsible for receiving, b) responsible for coordinating and
processing, analyzing and strengthening efforts of national and
disseminating information relating international intelligence, investigation
to suspect financial transactions. and enforcement
agencies
c) is a regulatory authority set up by
d) reports to the Economic
the Government of India Intelligence Council (EIC) headed by
the Finance Minister.
62 The nodal agency for submission of data by Financial Institutions under
FATCA/CRS in India is
a) CBDT b) FIU-IND
c) Department of Financial Services, d) RBI
Ministry of Finance
65
63 Under Beneficial Owner, the term "Controlling ownership interest" means
ownership of or entitlement to
a) more than fifty percent of shares or b) more than seventy-five percent of
capital or profits of the company shares or capital or profits of the
company
c) more than ten percent of d) more than forty-nine percent of shares
shares or capital or profits of the or capital or profits of the company
company
64 Anti-money laundering guidelines for Private Banking are given by
c) United Nations d) BASEL committee
65 State Bank of India has registered with US IRS on___
a) 23rd December 2014 b) 23rd November 2014
c) 3rd December 2014 d) 3rd December 2015
66 Which of the following is NOT true about Hacking
a) hacker may alter system or b) hackers employ a variety of
security features techniques like DoS, Malware etc
c) hacking includes attacks on social d) hacking does not include spoofing
media attacks
67 Once any Financial Institution is treated as NPFI, a withholding tax would
be applicable for all payments made through such institutions.
a) 30% b) 50%
c) 70% d) 25%
68 _ is self-replicating programs that spread by inserting copies of
themselves into other executable code files or documents
a) Spoofing b) Root Kit
c) Viruses d) Denial of Service
69 FATCA is effective from , all accounts before this date are termed as
pre-existing accounts.
a) July 01, 2015. b) July 01, 2014.
c) July 01, 2016. d) January 01, 2015.
70 Which of the following is NOT true about Pharming
a) a tactic used by criminals to b) It tries to trick the user into
redirect a legitimate web site to a clicking a URL
fraudulent site.
c) uses malicious code to redirect the d) without his/her consent or
user to the criminal’s site knowledge, making it more difficult
to detect.
71 Which of the following is NOT true about Vishing?
a) It is the telephonic version of b) criminals attempt to extract
phishing. information through a e-mail
c) uses social engineering techniques d) customer is tricked to provide
information on their financial
accounts.
72 Smishing is a form of phishing that uses____
a) e-mail messages b) cell phone text messages
c) phone calls d) web site
66
73 Which of the following is NOT true about modes of hacking?
a) Packet sniffer: applications that b) Spoofing: websites which falsify data
capture data packets in transit by mimicking legitimate sites,
c) Root kit: a set of programs to d) Vulnerability scanner: the process of
subvert control of an operating recovering passwords from data
system
74 Method used by thieves to capture information from a cardholder to make
fraudulent transactions is ____
a) Skimming b) Pharming
c) Surfing d) Smurfing
75 Which of the following is a technique used by criminals for skimming of card?
a) Colluding with staff at retail b) Inserting pads, films, camera or
merchant points to obtain other devices in the ATM to obtain
customer PIN customer PIN
c) Shoulder Surfing Customer PIN d) All of the above
76 Directors of a company move the assets from one limited company to another
to ‘secure’ the benefits of their business and avoid the liabilities, it is called as
a) Asset stripping b) Teeming and lading
c) Phoenixing d) Colluding
77 Parameters for Risk-Based Transaction Monitoring (RBTM) are issued by__
a) Indian Banks' Association. b) Reserve Bank of India
c) FIU-IND d) Ministry of Finance, Govt of India
78 Which of the following is NOT true about Name Screening?
a) is part of Customer Acceptance b) to weed out those persons or
Policy entities already on board
c) the Financial Institution increases d) person or entity is screened against
the risk of misuse of its channels lists circulated by National and
and facilities by unscrupulous International Organizations,
elements Regulators, Agencies
79 Name Screening - scrubbing of entire customer base against the negative lists
is done by the AML/CFT Department at___
a) Monthly intervals b) Quarterly intervals
c) Half Yearly intervals d) Yearly intervals
80 Video based Customer Identification Process (V-CIP) can be accepted for the
customer those having___
a) Aadhar Card b) PAN card
c) Both Aadhar card and PAN card d) Any of the OVD
81 Under FATCA, Broker-dealers, clearing organizations, trust companies
come under___
a) Depository Institution b) Custodial Institution
c) Investment Entity d) Insurance Company.
82 HNI Individual Customers having aggregate credit balance > Rs 1.50 Crores &
=< Rs 3.00 Crores to be categorized as___
c) High Risk d) No separate risk category for HNIs
67
83 Which of the following determine the customer risk categorization?
a) Occupation b) Social Financial Status
c) Business Activity d) All of the above
84 In the context of FATCA, what is NPFI
a) Non-Participating Financial b) Non-Participatory Financial
Institution Institution
c) Newly Participating Financial d) Non-Proliferating Financial
Institution Institution
85 Risk categorization of Salary Package a/cs of all Govt Depts are
a) Low b) Medium
c) High d) None of the above
86 URL for reporting Online Reporting of instances of detection of
counterfeit currency notes by designed officials
a) https://ccr.sbi.co.in b) https://ccr.statebanktimes.in
c) https:// counterfeit.co.in d) https:// currency.sbi.in
87 FSRB stands for____
a) Financial system Regional Bodies b) FATF-Style Regional Bodies
c) FATF Standard d) FATF Standard Regional Board
Regional Bodies
88 serves as a back door in a computer system to allow an intruder to
gain access to the system later
a) Malware b) Trojan horse
c) Key Loggers d) Virus
89 If the matter related to a suspicious transaction is pending in a court, the
relevant records should be retained for from the date of final verdict of
the court.
c) 10 years d) No specific guidelines
90 Time intervals for periodic updation of KYC for existing high-risk customers
a) 2 b) 6
c) 8 d) 10
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
ANS D D B C B D B C C B A A B D A
Q 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
ANS C B C D A C A A C C A C B C D
Q 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
ANS B D C C C D D B C D A A B C D
Q 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
ANS D D C D D C A A D C A A C C C
Q 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75
ANS C A C B A D A C B B B B D A D
Q 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90
ANS B A C C A B B D A A B B B B A
Back to Index page
68
CASH DEPARTMENT
1 As per the RBI instruction the 2000 RUPEE
a) Ceases its legal tender b) Continued to be legal tender
c) Customer to deposit by 31.03.2024 d) None of the above is correct
2 The size of the new 500 RUPEE note is …………….?
a) 66mm x 150mm b) 66mm x 166mm
c) 72mm x 160mm d) 72mm x 150 mm
3 How many bleed lines are there on new 500 rupee note?
a) 3 b) 5
c) 7 d) 9
4 As per RBI instructions 2000 RUPEE to be sent to RBI through ?
a) Registered Post b) Speed post
c) Insured Post d) Registered Post with Ack
5 Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 In terms of
Section 5 of the Ordinance, from December 31, 2016 no person shall knowingly
or voluntarily hold, transfer or receive any specified banknotes. After the
expiry of grace period, holding of not more than ………. notes in total,
irrespective of denomination
a) 5 b) 10
c) 25 d) 50
6 Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 In terms of
Section 5 of the Ordinance, from December 31, 2016 no person shall knowingly
or voluntarily hold, transfer or receive any specified banknotes. After the
expiry of grace period, holding of not more than ……. notes for the purpose of
study/ research/ numismatics is permitted
a) 5 b) 10
c) 25 d) 50
7 Counterfeit Currency Notes detected and impounded at the branch are
required to be reported on real-time basis directly to corporate centre and its
effective monitoring the application can be accessed at which URL?
a) https://ccr.sbi.co.in b) https://ccr.statebanktimes.in
c) https:// sbi.co.in/ccr d) https://statebanktimes.in/ccr
8 Manual preparation and submission of the counterfeit currency reporting has
been discontinued w.e.f which date?
a) 01.04.2017 b) 01.01.2017
c) 01.10.2016 d) 08.11.2016
9 The currency chests should invariably report all transactions through eKuber
on the same day by …… PM by uploading data through the Secured Website
to their respective link offices.?
a) 7 b) 8
c) 9 d) 10
10 Currency held by non-chest branches of SBI is the property of ?
a) Govt of India b) SBI
c) RBI d) None of these
11 Strong Room fitness certificate has to be renewed?
a) Once in two months b) A quarter
c) Once in a year d) Six months
69
12 Balances in Currency Transactions account are transferred to FSLO on last
working day of?
a) April & October b) April & September
c) February & August d) January & July
13 Excess cash found in the cash balance of a SWO has to be credited to
a) Suspense account b) Charges account
c) Sundry Deposit account d) Commission account
14 The deposit and withdrawal of Cash Box in/from Vault under IBCH will be
entered in?
a) Cash Receipt / Delivery Register b) Cash officer’s jotting book
c) Cash box receipt Delivery Register d) None of these
15 Cash held in the cash box overnight, will be treated as?
a) Sundry balance b) Petty cash balance
c) Branch Cash balance d) None of these
16 Specific gravity of pure gold is
a) 18.1 b) 20.1
c) 19.3 d) 18.3
17 Cash officer is responsible for ______ while sanctioning gold loan
a) Purity b) Weight
c) Value d) All the above
18 Gold ornaments of deceased borrower pending their settlement will have to
be kept in
a) Joint custody b) Safe Deposit Articles
c) In a separate locker d) None of these
19 Vault Register will always be kept in?
a) Accountant’s Hand Safe b) Strong RoomRoom
b) Strong
c) With Cash Officer d) None of these
20 Minimum Transaction that can be made to currency chest?
a) Rs 1 lakh & multiples of Rs 5 lakh b) Rs 1 lakh & in multiples of
only Rs 50,000 there of
c) Rs 50,000 & multiples of Rs 50000 d) None of these
21 Currency Chest is the property of?
a) Government of India b) SBI
c) Reserve Bank of India d) None of the above
22 Small Coin Depot consists of ?
a) All coins b) Coins upto Rs. 1/-
c) Coins below Re. 1/- d) Coins upto Rs. 5/-
23 Small Coin Depot (SCD) is the property of?
a) SBI b) RBI
c) Govt. of India d) None of these
24 Rs 1/- notes are issued by?
a) Govt of India b) RBI
c) SBI d) None of these
25 Min. withdrawal / deposits in SCD?
a) Rs 100/- & multiples of Rs 50/- b) Rs 50/- & multiples of Rs 50/-
c) Rs 1000/- & multiples of 100/- d) Rs 500/- & multiples of Rs 50
26 Small coin depot transactions are to be reported to ?
a) Zonal Office b) RBI
c) FSLO d) None of these
70
27 Clean Note Policy (CNP) is governed by ?
a) Sec 35 of Indian Currency Act b) Sec 35 A of B.R Act
c) Sec 35 A of RBI Act d) None of these
28 Relationship between RBI & SBI in case of currency chests is
a) Principal & Agent b) Bailor & Bailee
c) Agent & Principal d) None of these
29 Single Person preparing the note packet is responsible for both quality &
quantity upto?
a) Rs 200/- b) Rs 100/-
c) Rs 1000/- d) Rs 500/-
30 IBCH overnight cash retention limit is?
a) Rs 2 lakh b) Rs 25,000 /-
c) Rs 1 lakh d) Rs 5 lakh
31 In Branch Cash Handling (IBCH) is applicable to_____?
a) Metro branches b) Non currency chest branches
c) All branches d) Currency chest branches
32 For Rs 500/- & Rs 2000/- person preparing the note packet is responsible for?
a) Quantity only b) Quality only
c) Both quality & quantity d) None of these
33 Balances in Currency Chest have to be verified by an official other than the
joint custodians once in _____?
a) Once in two months b) Half year
c) Once in three months d) Once in a year
34 The difference between day’s total withdrawals and day’s total deposits in
the Chest is _____?
a) Treasury Transfer b) Cash Transfer
c) Currency Transfer d) None of these
35 The certificate of chest balance as on ____ is submitted to RBI by the Chest
branch?
a) 31st March b) 31st May
c) 31st July d) 31st Dec
36 In a soiled note remittance to RBI if more than ___% of notes is found to be
issuable notes, then entire remittance will be returned by RBI at sending
bank’s cost?
a) 10 b) 5
c) 20 d) None of these
37 Name the of the Register to record exchange of Cash between SWOs
in Cash Dept.?
a) Cash Transfer Register b) Cash Receipts Delivery Register
c) Cash Officer’s Jotting Book d) Cash Transaction Register
38 What type of insurance cover is obtained for Cash Remittances?
a) Comprehensive insurance cover b) Fidelity Insurance cover
c) Transit Insurance cover d) None of these
39 As per the latest instructions of the RBI, FIR has to be lodged in case of Fake
Currency notes, if the no. of notes is ____?
a) 4 b) 5 or more
c) 3 d) 2
71
40 Days net Withdrawal/ Deposit to reported to FSLO through ?
a) eKuber b) IFAMS
c) Fax d) email
41 Verification of Currency Chest balances by officials other than Joint
custodian is done at___________ intervals?
a) Once in a month b) Once in 2 months
c) No periodicity stipulated d) Once in a quarter
42 Surprise verification of Critical Currency Chests is made by LHO at ?
a) Monthly Interval b) Quarterly Interval
c) Half Yearly Interval d) No periodicity stipulated
43 Which of the following is true when remittance is sent from one currency
chest to another currency chest?
a) Branch Cash Balance is credited, b) Branch Cash Balance is debited,
and RBI’s Account is debited and RBI’s Account is credited
c) No Entry is passed d) None of these
44 Charges towards police escorts, transport etc. for chest to chest remittances
of treasure is?
a) Borne by Bank b) Paid by RBI
c) Paid initially by Bank, then d) None of these
reimbursed by RBI
45 Repository is part of _____?
a) Branch Cash Balance b) Currency Chest
c) Small Coin Depot d) None of these
46 Printing & Circulation of forged Indian currency notes is an offence u/s ?
a) Sec 292 of Criminal Procedure code b) Sec 489A to 489E of Indian Penal
code
c) Both d) None
47 Forged Note Vigilance Cell (FNVC) of the bank is required to submit data on
counterfeit notes detected during a month on all India basis by email to
____before the end of succeeding month
a) RBI Issue Office b) FIU-IND, New Delhi
c) National Crime Records Bureau, d) Currency Management Dept. of
New Delhi RBI, Mumbai
48 Fidelity insurance cover for single window operator is obtained for ?
a) Rs 0.50 Lakh b) Rs 1 Lakh
c) Rs 5 lakh d) Rs 10 Lakh
49 Recounting of note packets is not required for denominations upto ?
a) Rs 50/- b) 200/-
c) Rs 500/- d) All note packets to be recounted
50 Who will be responsible for tampered bundles / note packets kept in the
vault?
a) Cash-in-Charge alone b) Joint Custodian of Vault
c) Accountant alone d) Branch Head alone
72
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS B A B C B C B C C B
Q 11 12 13 14 15 16 17 18 19 20
ANS C A C C C C D B B B
Q 21 22 23 24 25 26 27 28 29 30
ANS C C C A A C B A A C
Q 31 32 33 34 35 36 37 38 39 40
ANS C A A C B A B C B A
Q 41 42 43 44 45 46 47 48 49 50
ANS B B C C B B D C B B
Back to Index page

73
SYSTEM AND PROCEDURES
TAX DEDUCTION AT SOURCE – TDS
CASH WITHDRAWAL EXCEEDING RS 1.00 CRORE–TDS UNDER SECTION 194 N

CHANGE PROPOSED IN FINANCE ACT 2020:
As per Finance Act 2020, the provisions of section 194N have been changed as below:
In case of a recipient who has not filed the Income Tax Return for all of the three
previous years, for which the time limit to file return of income under section 139(1)
has expired, immediately preceding the year in which the payment of the sum under
194N is made to him. The provision of this section shall apply with the modification as
under.
Particulars Rate of TDS Rate of TDS Rate of
(PAN not (PAN TDS
available) available & (PAN
Return not available &
filed) Return
filed)
Cash Withdrawals upto Rs. 20 Lacs NIL Nil Nil
Cash Withdrawals from Rs. 20% 2% Nil
20,00,001 to Rs. 1 Crore
Cash Withdrawals in excess of Rs. 20% 5% 2%
1 Crore
However, for customers who filed Income Tax Return in any one of last 3 years, Tax
will continue to be deducted @ 2% in excess of Rs. One Crore.
GST Rates:
Business Type GST Rate (%)

Banking Services (Commission & Exchange) 18
Sale of Gold (Bullion Business) 3
Deputation charges for salaries and allowances recovered from other
Associates/Subsidiaries or other entities 18
Rent recovered from other Associates/Subsidiaries or other entities 18
Sale of Repossessed Goods (depends on the type of goods)
Gold 3
Car 18
Tractor 12
Plant & Machinery 18
INPUT TAX CREDIT (ITC):

➢ GST paid to vendors on procurement of goods/ services can be availed by
Bank as input tax Credit (ITC).
➢ This can be used to reduce cash outflow of the Bank on account of GST
liability on services provided or goods sold by Bank
74
Section Nature of When to deduct tax at source (i.e payments or Individuals,
of Payment credit whichever is earlier) HUF, BOI,
Income AOP,AOP,
Tax firms &
Act Companies
Rate [%]
193 Interest on Interest on 8% Savings 10
Securities (Taxable) Bonds, 2003
exceeding Rs 10,000/-
Interest on 7.75% Savings 10
(Taxable) Bonds, 2018
exceeding Rs 10,000/-
194A Interest other Interest on Term Deposits 10
than [including RD] - exceeding Rs.40,000/- per
Interest on person for Bank as a whole in a financial year for
securities other than senior citizens (as amended by
Finance Act,
2019) exceeding Rs.50,000/- per person for Bank
as a whole in a financial year for senior citizens
10
194C* Payment/ Credit Where a single contract payment exceeds
to Rs.30,000/- or in cases where the aggregate
Contractors/ amount of such payments credited or paid or
sub- likely to be credited or paid during the financial
Contractors year (including advances if any) exceeds
Rs.1,00,000 /-. TDS is required to be made on
payment or credit to
a) Individual/HUF 1
b) Other than individual/HUF 2
194H Commission or When such commission or brokerage exceeds
Brokerage Rs.15,000/ - in a F.Y. 5
194I Rent When rent in a financial year exceeds
Rs.2,40,000/- [including advance if any] (as
amended by
Finance Act, 2019) 2
i. Rent of Machinery, Plant & Equipment ii. Rent of 10
others viz. land, building, furniture and fittings etc.:
194I-A Transfer of When consideration on acquisition of immovable
movable property from a resident transferor (other than
property rural agricultural land) equal to or more than Rs. 1
50,00,000/-
194J Fees for When such fees in a financial year exceeds Rs. 10
Professional or 30,000/- Remuneration/Fees/Commission
Technical payable to Director (not being in the nature of 10
services salary)- No threshold limit for TDS on such
payments 2
Payee engaged only in the business of operation
of Call Centre (w e f 01.06.2017)
75
➢ In case, PAN is not furnished by the deductee, tax shall be deducted at 20%.
➢ TDS is not to be deducted on Service Tax/ GST component (if shown
separately in the Invoice)
➢ In case, Payee - transporter submits a declaration in prescribed form along
with PAN stating that he is covered under section 44AE and no tax is required
to be deducted.
➢ Record retention period for form 15G / 15h – 7years from the financial year
end on which the form submitted
Name of Streams TDS Deducted from

CBS Interest on Deposits
VPS Vendor Payments
HRMS Salary & Pension payments to employees and
CPPC Pension to Government employees.
BGL - TDS on Miscellaneous payments (4899154).

Consequences for non-compliance of TDS provisions: -
➢ The deductor is liable to pay simple interest @ 1% under section 201(1A) for
every month or part of a month on the amount of tax in arrear from the date on
which such tax was deductible to the date on which such tax is deducted.
➢ Further, the deductor may be liable for penalty of sum equal to the amount of
tax, which has been failed to be deducted.
➢ In case of failure to deposit whole or part of TDS in Govt. account after
deduction, the deductor is liable to pay interest @ 1.5% under section 201(1A)
for every month or part of the month on the amount of such tax from the date
on which such tax was deducted to the date on which such tax is actually paid.
Further, a person who fails to pay tax to the credit of the Central Government
may be liable for prosecution u/s.276B
TDS Refund:
TDS on Interest on deposits in in CBS, till 15 days after the end of the quarter,
CBS if sufficient balance is available in respective
TDS BGL accounts.
TDS on Vendor payments in in VPS till month end, if sufficient balance is
CBS available in respective TDS BGL accounts.
TDS on Pension payments in in CPPC till month end, if sufficient balance is
CPPC available in respective TDS BGL accounts.
HRMS TDS refunds will not be available
76
SYSTEM AND PROCEDURES
SYSTEMS & PROCEDURES - I
1 The security arrangements at the branches and other entities of the Bank as
applicable are available
a) Branch Dossier b) Aide Memoire
c) Branch Document Register d) Branch Security Register
2 Which of the following is not an activity related to Preventive Vigilance
a) Replying to inspection and audit b) Balancing and checking of books
reports
c) Training of staff d) Addressing customer complaints
pertaining to deficiency in customer
service
3 On change of incumbency, the Handing-over and Taking-over of charge letter is
to be done on form ______
a) COS-330 b) COS-335
c) COS-331 d) COS-332
4 On change of incumbency, the relieving Branch Manager’s Certificate is on
form _______
a) COS-331 b) COS-333
c) COS-332 d) COS-334
5 The Licences/Retention limit/leases / title deeds / receipts/ Insurance and
Agreements are to be entered in Section __________ of Branch Documents
Register
a) Section I b) Section II
c) Section III d) Section IV
6 In Branch Documents Register, which of the following items pertaining to
insurance is not to be entered under E-5: ‘Insurance’ folio
a) Bank’s Building, Furniture & b) Cash-in-transit
Electrical Installations
c) Fidelity Insurance cover for Teller d) Bank’s retainer vehicle
7 Which of the following items should not be entered in Branch Document
Register?
a) Lease / Title Deeds of the Branch b) Safe deposit receipt in respect of
Premises branch duplicate keys.
c) Documents relating to law suits / d) Full details of Security Forms received
frauds. from CSD
8 Rule____ to Rule ____of the SBI Officers’ Service Rules(OSR ), 1992 lay down
the provisions /instructions relating to compliance of the Conduct / Ethics
Rules by the Officers.
a) Rule 50 to Rule 65 b) Rule 50 to Rule 67
c) Rule 55 to Rule 65 d) Rule 67 to Rule 69
9 Rule____ to Rule ____ of the SBI Officers’ Service Rules, 1992 deal with the
penalties / disciplinary action against the Official for any violation on his / her
part of the above Rules and also the mechanism prescribed for appeal against
such punishment / disciplinary action
a) Rule 50 to Rule 65 b) Rule 50 to Rule 67
c) Rule 55 to Rule 65 d) Rule 67 to Rule 69
77
10 Prohibition of sexual harassment of working women is covered under
Rule_______ of the SBI Officers’ Service Rules, 1992
a) Rule 50 (5) b) Rule 50 (10)
c) Rule 50 (15) d) Rule 50 (20)
11 Which of the following is/are considered as Minor penalty/ies as per Rule 67 of
SBI Officers’ Service Rules, 1992
a) Censure b) Withholding of increments of pay with
or without cumulative effect;
c) withholding of promotion d) All of the above
12 Which of the following is/are considered as Major penalty/ies as per Rule
67 of SBI Officers’ Service Rules, 1992
a) reduction to a lower grade or post b) compulsory retirement
c) dismissal d) All of the above
13 Which of the following is the objective of the Policy on Sexual Harassment of
women at workplace (Prevention, Prohibition and Redressal), 2013 is to provide
a safe, secure and enabling environment for working women
a) Protecting women against sexual b) Preventing instances of sexual
harassment at the workplace harassment at the workplace
c) Providing redressal of complaints of d) All of the above
sexual harassment at the workplace
14 Which of the following is/are permitted to issue Promissory Notes & Bill of
Exchange payable to Bearer
a) Any individual, Partnership, b) Govt. of India
company, etc
c) RBI d) Both (b) & (c)
15 Which of the following are the structural changes in revamped Internal Audit
process
a) continuous monitoring of controls b) risk rating of branches
through offsite audit
c) changes in audit report format (ARF) d) All the above
16 Which of the following is not a categorization of Branches in Outlier
identification application
a) Outlier b) Moderate Outlier
c) Satisfactory d) Normal
17 With regard to identification of branches/units for Internal Audit, which
branch/unit is taken up first for audit first in terms of priority in the Outlier Model
a) Those getting the highest score b) Those getting the lowest score
c) Those getting Normal score d) Those getting Moderate score
18 Branches getting _________score in Outlier Model are categorized as
‘Moderate’ status
a) >450 b) >350 to 450
c) >250 to 350 d) 0 to 250
19 Branches getting _________score in Outlier Model are categorized as ‘Normal’
status
a) >450 b) >350 to 450
c) >250 to 350 d) 0 to 250
20 Branches getting _________score in Outlier Model are categorized as
‘Acceptable’ status
a) >450 b) >350 to 450
78
c) >250 to 350 d) 0 to 250
21 The date of next Audit will not be more than _________months and not less
than ____________months from that of the previous Audit
a) 21 & 12 b) 18 & 9
c) 21 & 18 d) 21 & 9
22 The minimum period of 9 months will not be a restraining factor for early
conduct of Audit in which of the following:
a) Spot Audit b) Specific areas of concern/irregularities
c) Serious irregularities having taken d) All of the above
place in Auditee units
23 Offsite Audit process envisages
a) Centralized monitoring of auditee b) Centralized Control of auditee units
units based on remote evaluation of based on remote evaluation of data
data points available in the source points
systems - CBS, LOS, LLMS, CDC
reports, warehoused data with
IDSPM etc.
c) To reduce the overall expenditure in d) Decentralisation of Monitoring &
connection with Audit Control of Auditee units
24 A score of ________ (__% of the total ORM-RFIA score) has been assigned to
the ORM area of Offsite Audit
a) 240 & 24 b) 460 & 46
c) 260 & 26 d) 320 & 32
25 In the Internal Audit, which are the areas where separate rating are given
a) CRM, ORM & Business b) CRM, ORM, Domestic Business &
International Business
c) CRM, ORM & Budget achievement d) CRM, ORM & FEMA
26 In the Audit Rating symbols, the letters sequentially indicate which of the
following:
a) FEMA, CRM, ORM b) CRM, ORM, FEMA
c) ORM, FEMA, CRM d) CRM, FEMA, ORM
27 Frauds which involve gross negligence in following systems and
procedures, abuse of delegated powers, staff involvement for personal gains
and concealing of fraudulent transactions and non-reporting to controllers –
comes under which category of Frauds in RFIA
a) Category-I b) Category-II
c) Category-III d) None of the above
28 Frauds that have occurred mainly outside the control area of the branch more
particularly in the realm of digital banking, for which the branch cannot be made
responsible – comes under which category of Frauds
a) Category-I b) Category-II
c) Category-III d) None of the above
29 In RFIA, what is the penalty for branches identified as Category-I Fraud
a) ORM rating of the branch will be b) ORM score will be reduced by a
downgraded by one step minimum of 50
c) ORM & CRM score will be reduced d) ORM rating of the branch will be
by a minimum of 50 or more downgraded by one step and score will
be reduced by a minimum of 50 or
more.
79
30 In RFIA, what is the penalty for branches identified as Category-II Fraud
a) ORM rating of the branch will be b) ORM score will be reduced by a
downgraded by one step minimum of 50
c) Negative marks of 50 will be d) ORM rating of the branch will be
awarded, which may or may not downgraded by one step and score will
entail a down grade of Risk Rating be reduced by a minimum of 50 or
depending on the score. more.
31 The penalty for false compliances against OTMS alerts is
a) A negative score of 10 for each false b) A negative score of 2 for each false
compliance to an OTMS alert with a compliance to an OTMS alert with a
minimum of 10 and a maximum of minimum of 5 and a maximum of no
50 (for all false compliances) will be cap (for all false compliances) will be
awarded awarded
c) A negative score of 10 for each false d) A negative score of 10 for each false
compliance to an OTMS alert with a compliance to an OTMS alert with a
minimum of 20 and a maximum of minimum of 5 and a maximum of 50 (for
100 (for all false compliances) will all false compliances) will be awarded
be awarded
32 ________________forms an integral element of the overall operational risk
framework, as it helps the Bank in risk identification and risk management
efforts and to improve the understanding, control and oversight of its
operational risks.
a) Risk Control Self-Assessment b) Risk Centered Self-Assessment
c) Risk Control Self-Appraisal d) Risk Contained Self-Assessment
33 Risk Control Self-Assessment is different in which of the following ways:
a) While RCSA is a proactive b) RCSA focuses on identification of
assessment of risk and control unknown Risks but Audit focuses on
effectiveness, Audit is post-facto managing known Risks
assessment of adherence to
System & Procedures
c) RCSA has involvement of all staff d) All of the above
but Audit has involvement of
selective staff
34 ________________is a risk event that otherwise meets the definition of an
operational loss event, but for which no financial loss has been incurred not
because of effective controls but due to fortuitous circumstances
a) Risk Control Self-Assessment b) Frauds
c) Near Miss Event d) Near Miss Frauds
35 Which of the following is not an incident of IT related Near Miss Event related
a) Fraud committed due to b) Failed BCP / DR tests
compromise of user credentials
c) Unsuccessful physical access d) Unsuccessful hacking attempts on IT
attempts i.e. on physical locations components
36 Preventive Vigilance is important in Banks due to which of the following:
a) To minimise frauds, irregularities, b) To formulate remedial measures and
lapses initiate corrective actions
c) To follow systems and procedures d) All of the above
meticulously; Enjoy faith and
confidence of public; Ensure there is
no loss of business.
80
37 Which of the following is not a differentiating reason between Preventive Vigilance and
Punitive Vigilance
a) Preventive vigilance is not directed b) Preventive Vigilance cannot be misused
against an individual whereas Punitive for vindictive purposes while Punitive
Vigilance targets against an individual Vigilance can be misused
c) Preventive Vigilance is highly costly d) Preventive Vigilance is impersonal and
and requires elaborate specialized does not act as a fetter upon the rightful
machinery unlike cheaper punitive exercise of authority whereas Punitive
vigilance. Vigilance is not so
38 Which of the following best describes the feature of Preventive Vigilance
Committee at the Branches/Operating Units
a) Preventive Vigilance Committee b) Preventive Vigilance Committee
acts as a Power Centre in cannot completely avoid frauds and
Branches/Units hence is of little use
c) Preventive Vigilance Committee is d) As most of the processes in the
like a Knowledge Circle in Branches/Units are computerized,
Branches/Units aimed at prevention Preventive Vigilance Committee is best
of loss and enhancement of utilized in centralized IT Operations like
performance GITC
39 In which of the following Branches/Units, formation of Preventive Vigilance
Committee is not compulsory
a) A branch with staff strength of 5 with b) Centralised Processing Cells like
recent detection of fraud RACPC, SMECC, RASMECCC, etc
c) Branches having staff strength of 10 d) Branches having staff strength of less
or more than 10
40 The periodicity of Preventive Vigilance Committee Meeting is
a) Monthly b) Quarterly
c) Half-yearly d) Yearly
41 ____________________provides a framework to the organization to draw up
an action plan for meeting any crisis (disaster or emergency)
a) Near Miss Events b) ORM
c) CRM d) Business Continuity Guidelines
42 The BC&OR Plan for existing branches/CPCs/Offices is required to be reviewed
and approved as on __________every year.
a) 31st January b) 31st May
c) th
30 September d) 30th June
43 While approving BC&OR Plan, the Controller should see that the designated
alternate location ________________
a) should be in the same premises b) should not be in the same centre
c) should not be in the same premises d) should not be in the same locality
44 BC&OR Plan is required to be tested across all branches/processing
centres/offices at least once in __________
a) A Half-year b) a year
c) Every Quarter d) As and when advised by the
Controllers
45 The branch/processing centre/office to invoke BC&OR within ____________ of
disruption and commence functioning from the designated alternate location
within _________of disruption without waiting for restoration of connectivity
a) One hour & 30 Minutes b) 30 Minutes & 45 Minutes
c) 30 Minutes & One hour d) One hour & Two Hour
81
46 In BC&OR Plan, the abbreviation ‘BIA’ means
a) Business Impact Analysis b) Business Identifier Analysis
c) Budget Impact Analysis d) Business Indicator Analysis
47 In BC&OR, the team which makes all key decisions and co-ordinate with all other
teams is
a) Response Team b) Co-ordinating Team
c) Liaison Team d) Crisis Management Team
48 In BC&OR, ____________is responsible for ensuring the safety of individuals in
the event of fire, floods and other exigencies
a) Exigency Response Team b) Emergency Response Team
c) Crisis Reaction Team d) Exigency Reaction Team
49 _______________ is defined as an interruption of mission critical information
services for an unacceptable period of time
✓ Disaster b) Emergency
c) Crisis d) Collateral Damage
50 DRP is _____________ in nature
a) Reactive b) Responsive
c) Proactive d) Repulsive
51 Each Disaster Recovery Plan (DRP) should become a part of ____________, and
a reference be made in the ___________________________
a) Branch Document & Reviewed b) Branch Dossier & Branch Manager's
during P-Review Meetings Monthly Certificate
c) Aide Memoire & Branch Manager's d) Branch Document & Branch Manager's
Monthly Certificate Monthly Certificate
52 Branches maintaining currency chest are guarded twenty-four hours a day by
the armed guards and there are at least ________on duty during business
hours.
a) One Guard b) Two Guards
c) Three Guards d) As advised by the Security Officer in
consultation with the Controllers
53 Maximum of _____ cartridges are kept with every gun against acknowledgement
of the guards. While on duty, ______ cartridges are loaded in the gun and the
remaining are carried in the pouch / belt by the guard.
a) 10, 2 b) 2,10
c) 20, 2 d) 2, 20
54 In order to detect electrical faults, which may lead to short circuit and fire, which
of the following is to be done
a) AMC with approved Electrical b) Liaison with Electricity Department
engineering company
c) Electrical Audit d) Get in touch with Elec Engineer in LHO
55 Bank’s Security Officer has to visit branches under his professional guidance
once in a ___________
a) Month b) Quarter
c) Half-Year d) Year
56 In order to familiarize the staff with regard to maintenance and use of Fire
Extinguishers, which of the following is to be done:
a) Ensure that each staff member is b) Depute each staff to attend an
provided with the Fire Extinguisher exclusive Training Programme at
Manual SBILDs
82
c) Every staff, on a turn should be d) A demonstration on the maintenance
deputed to the nearby Fire Station and use of the fire extinguishers
for training
57 As a security measure, which of the following is mandatorily to be installed in
all Currency Chest Branches?
a) Fire alarm b) Installation of Electronic Time Locks
c) CCTV is installed in the Currency d) All the above
Chest
58 __________________indicates the location of the important keys of the branch,
their effective custody etc
a) Locking up Arrangements b) Emergency Arrangements
c) Key-holding Arrangements d) Security Arrangements
59 Information Security is all about ensuring CIA which means
a) Credibility, Integrity & Availability b) Credibility, Integrity & Applicability
c) Confidentiality, Integrity & d) Confidentiality, Integrity & Accessibility
Availability
60 SBSOC has been setup for Real-time Monitoring, Analysis, Correlation and
Incident Management based on the logs generated by IT Assets. SBSOC stands
for
a) State Bank Systems Operations b) State Bank Security Operations Centre
Centre
c) Secured Business Systems d) Secured Banking Systems Operations
Operations Centre Centre
61 Password should be changed at least once in __ days or ___________________
a) 180 days & when you suspect it has b) 90 days & as and when the user
been compromised remembers
c) 30 days & when you suspect it has d) 90 days & when you suspect it has
been compromised been compromised
62 Failed SI report for recovery of Locker rent is available in the
a) CBS report b) Branch Manager mail id
c) RBO will forward the details to the d) CRM
branches
63 Maximum limit for Non-Home Branch transfer transactions in SB accounts other
than HNI/NRI is
a) Rs. 1 lac b) Rs. 2 lacs
c) Rs. 10 lacs d) Rs. 5 lacs
64 Maximum limit for Non-Home Branch transfer transactions in accounts of
SB-HNI/NRI, CA-Per, CA-Corporate & CA-Govt. is
a) Rs. 100 lacs b) Rs. 25 lacs
Corporate Client Cheques payable at par having Facsimile signature is
c) Rs. 10 lacs d) Unlimited
Corporate Client Cheques payable at par other than those having Facsimile
signature is
c) Rs. 10 lacs d) Unlimited
83
67 Maximum limit for Non-Home Branch Cash transactions in Per Segment for Self
is Rs._______________ and for Third party Rs.___________
a) Rs.10,00,000/- & Rs.25,000/- b) Rs. 50,000/- & No Limit
c) Rs. 1,00,000/- & Rs.50,000 d) Rs. 50,000/- & Rs.50,000
68 Non-Home Branch Cash transactions for Super Senior citizens of more than 80
years of age are allowed upto a limit of ___________
a) Rs. 5000 b) Rs.10,000
c) Rs.15,000 d) Rs.25,000
69 Non-Home Branch Cash transactions for SME segment and for Agri-KCC
cheques for Self is Rs._________ and for Third party is Rs._____________
a) Rs. 50,000/- & Not allowed b) Rs. 2,00,000/- & Not allowed
c) Rs. 1,00,000/- & Not allowed d) Rs. 5,00,000/- & Not allowed
70 Maximum limit for Non-Home Branch Cash transactions in CAG/CCG customers
for Self is Rs._______________ and for Third party Rs.___________
a) Rs. 2,00,000/- & Not allowed b) Not allowed & Not allowed
c) Rs. 5,00,000/- & Not allowed d) Rs. 10,00,000/- & Not allowed
71 Passing for payment of high value cheques of ___________will be physically
authorized by two officials
a) Rs.10 lacs and above b) Rs.20 lacs and above
c) Rs.50 lacs and above d) Rs.100 lacs and above
72 Individual/s, entities, etc. having controlling ownership interest more than ____
% “Control” (right to appoint majority of directors/control management/policy
decisions) in Companies are called as “Beneficial Owners”
a) 10% b) 20%
c) 15% d) 25%
73 Individual/s, entities, etc. having controlling ownership interest more than ____
% controlling ownership in Partnership/Association/Trusts are called as
“Beneficial Owners”
a) 10% b) 20%
c) 15% d) 25%
74 Which of the following will result in Partial Freezing of Accounts
a) Accounts opened with deemed b) Small accounts where OVD is not
OVD, but updated OVD is not provided within a period of 24 months
provided within 3 months
c) Accounts found KYC non-complaint d) All of the above
on re-examination/audit/inspection
75 ___________is the competent authority to do partial Freeze/removal of Partial
Freeze of accounts
a) Branch Manager b) Regional Manager
c) DGM (B&) d) DGM & CFO
76 For partial freeze of accounts, after _________ period from the date of first notice
only credits to be allowed
a) 1 month b) 2 months
c) 3 months d) 15 days
77 The designated Money Laundering Reporting Officer (MLRO) at Circles is
a) CGM of the Circle b) Any identified GM (Network) by the
CMC
c) DGM (B&O) of the AO d) DGM & CFO of the Circle
84
78 The designated Deputy Money Laundering Reporting Officer (MLRO) at Circles
is
a) CGM of the Circle b) Any identified GM (Network) by
the CMC
c) DGM in the AO d) DGM & CFO of the Circle
79 The designated Assistant Money Laundering Reporting Officer (MLRO) at
Circles is
a) DGM (B&O) b) AGM/Branch Head
c) Regional Manager d) Either (b) or (c)
80 Which of the following Banks come within the ambit of Banking Ombudsman
(amended July 1, 2017)
a) All Scheduled commercial banks, b) Regional Rural Banks
c) Scheduled primary Cooperative d) All the above
Banks.
81 The enactment by the Hiring Incentives to Restore Employment (HIRE) Act on
March 18,2010 as a direct result of the focus by the United States on combating
off-shore tax evasion and recouping much needed tax revenues is ________
a) Foreign Advance Tax Compliance b) Foreigners’ Account Taxation Control
Act Act
c) Foreigners’ Advance Tax Control d) Foreign Account Tax Compliance Act
Act
82 The ultimate goal of FATCA is for the United States _____________
a) to obtain information with respect to b) To strengthen the US position amongst
offshore accounts and investments other nations
beneficially owned by US taxpayers
c) to collect any tax through the new d) None of the above
withholding regime
83 Under FATCA, the Financial Account maintained by a Reporting Indian Financial
Institution and held by one or more Specified U.S. Persons or by a Non-U.S.
Entity with one or more Controlling Persons that is a Specified U.S. Person is
known as _________
a) India Reportable Account b) U.S Reportable Account
c) India Receivable Account d) U.S Receivable Account
84 Under FATCA, the term “U.S. Person” means
a) a U.S. citizen or resident b) a U.S. citizen or resident
individual, a partnership or individual, a partnership
corporation organized or corporation organized
outside the United States or in the United States or
under the laws of the under the laws of the
United States or any State United States or any State
thereof, a trust
thereof, a trust
c) a U.S. citizen or resident d) All of the above
individual, a partnership or
corporation organized in or
outside the United States or
under the laws of the United
States or any State thereof, a
trust
85
85 The nodal authority with regard to ensuring compliance of FATCA in Financial
Institutions in India is
a) Finance Ministry, Govt. of India b) FEMA
c) CBDT d) RBI
86 In case of non-compliance or wrong compliance with the provisions of FATCA by any
Bank or Financial Institution, it may be treated as a Non-Participating Financial
Institution (NPFI) by US IRS. Once any Financial Institution is treated as NPFI, the
impact for the Financial institution is____________
a) a 10% withholding tax would be b) a 20% withholding tax would be
applicable for all payments made applicable for all payments made
through such non participating through such non participating financial
financial institutions institutions
c) a 30% withholding tax would be d) No impact on the Financial Institution
applicable for all payments made
through such non-participating FIs.
87 The Committee which recommended setting up of the Banking Codes and
Standards Board of India (BCSBI) was
a) Narasimham b) S.S. Tarapore
c) R.K. Talwar d) Goiporia
88 Banking Codes and Standards Board of India was registered under the
a) Companies Act 2013 b) Government Company
c) Banking Regulation Act 1949 d) Societies Registration Act, 1860
89 Which one of the following is not the use of IFAMS software, the centralized
application software for Fixed Assets?
a) Fixed Asset Management b) Depreciation Calculation
c) Posting of accounting entries d) Insurance premium calculation and
related to Fixed Assets in CBS payment for Fixed Assets of the Bank
90 Which one of the following assets will not be maintained by the IFAMS software
a) Project Under Construction (PUC) b) Leased Assets
c) Fixed Assets on which Bank has a d) Premises and Fixed Assets
legal charge as a secured creditor
91 Which of the following types of accounts in CBS are more sensitive and as such
requires more monitoring and control?
a) CC/OD accounts of customers b) DL/TL accounts of customers
c) Deposits accounts of customers d) System Suspense accounts
92 In CBS which type of accounts generate reference numbers which are to be used
at the time of reversal of the originating entries
a) Non-reconciliatory type of BGL a/cs b) Reconciliatory type of BGL a/cs
c) Non-reconciliatory type of Customer d) Reconciliatory type of Customer a/cs
a/cs
93 Which of the following type of BGL accounts has to be reversed with a
Responding Debit entry?
a) Originating Credit b) Originating Debit
c) Responding Credit d) Reversing Credit
94 Which of the following is a True statement with regard to ATM Cash disbursed
customer account is debited (BGL No. 98581)
a) Owing to connectivity problem between b) For complaints received by ATM
ATM and CBS, transactions are authorized Switch in case of failure of ‘Not on Us’
on the basis of balance available in Positive transactions, if reply is not received by
Balance File (PBF) by the ATM System. ATM Switch within the stipulated time
86
However, once the connectivity is restored, period (now 3 days), ATM Switch
if any transaction in the above process debits the branch 98581 and credits
could not be posted to the customer's passed on to the other Bank.
account for want of funds, or due to posting
restriction, Branch 98581 is debited
c) Both (a) & (b) d) None of the above
95 Which of the following is a True statement with regard to RTGS Rejected
transactions account is posted (BGL No. 98593)
a) The failed outgoing Inter Bank b) Incoming Inter Bank transactions (Inter- Bank
RTGS transactions which have remittances for e.g. Credit for multiple
been returned on rejection by the customers, proceeds of cheques sent directly
other Bank land in this account. to Other Bank and Inland Bill/LC Bill related
transactions) which get posted to this account
96 All failed debit transactions are posted in _____________ account while
uploading of bulk transactions relating to various service charges like
inspection charges, SMS charges, ATM service charges, etc
a) RTGS Rejected transactions b) System Suspense -DD to be issued
account account
c) NEFT Rejected transactions d) Trickle Feed Rejected Debit a/c
account
97 Which one of the following statements is not true about the importance of Tax
Deduction at Source (TDS) for the Government
a) TDS prepones the collection of tax, b) TDS provides for a greater reach and
ensures a regular source of revenue wider base for tax
c) TDS helps the overall Banking d) The government uses TDS as a tool to
system by improving the Credit- collect tax to minimise tax evasion by
Deposit (CD) Ratio taxing the income (partially or wholly)
at the time it is generated rather than at
a later date
98 Which of the following is not subject to TDS deduction?
a) Payment for Branch Premises b) Quarterly Concurrent Auditor fees of
contract work billed at Rs.45,000 Rs.10,000/- per quarter
c) Leased Rent payment made to the d) Interest on a Customer’s Recurring
landlord of the Branch Official’s Deposit along with accrued interest for
residence for Rs.16,000/- per month the year amounting to Rs.50,000/-
(assuming that there is no other
deposit or account of the customer
except an SB account)
99 Which of the following statements is false with regard to TDS applicability?
a) TDS is deductible on Interest b) In case of Interest payable to Non-
accrued and paid for STD/TD for a residents, TDS deduction shall be
customer, if it exceeds the threshold made in the same way as Domestic
limit Resident accounts
c) Interest on Savings Bank account d) Highest rate of TDS is deductible on
is not subject to TDS deduction NRO deposits
87
SYSTEMS & PROCEDURES – I
Q 1 2 3 4 5 6 7 8 9 10
NS B D A A C D D A D B
Q 11 12 13 14 15 16 17 18 19 20
ANS D D D D D C A B D C
Q 21 22 23 24 25 26 27 28 29 30
ANS D D A C D B A C D C
Q 31 32 33 34 35 36 37 38 39 40
ANS B A D C A D C C D B
Q 41 42 43 44 45 46 47 48 49 50
ANS D D C B C A D B A C
Q 51 52 53 54 55 56 57 58 59 60
ANS D B A C D D D A C B
Q 61 62 63 64 65 66 67 68 69 70
ANS D A C D C D A B C B
Q 71 72 73 74 75 76 77 78 79 80
ANS C D C D A C D C B D
Q 81 82 83 84 85 86 87 88 89 90
ANS D A B B A C B D D C
Q 91 92 93 94 95 96 97 98 99
ANS D B A C C D C C B
Back to Index page
88
SYSTEM AND PROCEDURES – II

1 For non-deduction of TDS from Interest on deposits, Form 15G is to be
provided by the Resident Indian individual deposit holder who is of age
a) Upto 60 years b) Below 60 years
c) Above 60 years d) None of the above
2 In case of failure to deduct whole or part of TDS, the deductor is liable to be
penalized with which of the following:
a) pay simple interest @ 1.5% for b) pay simple interest @ 2% for every
every month or part of a month on month or part of a month on the
the amount of tax in arrear from the amount of tax in arrear from the date
date on which such tax was on which such tax was deductible to
deductible to the date on which such the date on which such tax is actually
tax is actually deducted deducted
c) pay simple interest @ 1% for every d) pay simple interest @ 5% for every
month or part of a month on the month or part of a month on the amount
amount of tax in arrear from the of tax in arrear from the date on which
date on which such tax was such tax was deductible to the date on
deductible to the date on which which such tax is actually deducted
such tax is actually deducted
3 In case of failure to deposit whole or part of TDS in Govt. account after deduction, the
deductor is liable to be penalized with which of the following penalties apart from being
liable to be prosecuted:
a) to pay interest @ 2.5% for every monthb) to pay interest @ 2% for every month or
or part of the month on the amount of part of the month on the amount of such
such tax from the date on which such tax from the date on which such tax was
tax was deducted to the date on which deducted to the date on which such tax is
such tax is actually paid actually paid
c) to pay interest @ 1% for every month or d) to pay interest @ 1.5% for every month
part of the month on the amount of such or part of the month on the amount of
tax from the date on which such tax was such tax from the date on which such tax
deducted to the date on which such tax was deducted to the date on which such
is actually paid tax is actually paid
4 Which of the following is not a source system for TDS deduction:
a) Interest on Deposits in Core b) Vendor Payments in Vendor Payment
Banking Solutions (CBS) Systems (VPS)
c) Salary Payments & Staff Pension in d) Integrated Fixed Assets Management
Human Resource Management Systems (Ifams)
System (HRMS)
5 Cheques bearing dates prior to the date of death of individual constituents
presented for payment can be ____________
a) Paid b) Cannot be paid and to be returned
c) Paid if presented by the legal heirs d) None of the above
6 A Cheque drawn by a Partnership firm, where one of the partners has deceased,
is presented for payment. It can be___________
a) Paid b) Cannot be paid and to be returned
c) Paid if presented by the other d) Paid if presented by the other partners
partners jointly jointly with the legal heir/s of the
deceased partner
89
7 In a Joint Hindu Family, when one of the Co-parceners dies, the operations in
the account ________________
a) Can be continued by the Karta b) Cannot be continued. A new account
has to be opened to be operated by the
Karta
c) Can be continued with the d) Can be continued by the Karta,
operations by all other Co- provided that the deceased has not
parceners along with the legal heirs left a will
of the deceased co-parcener jointly
8 In a Joint Hindu Family, if the Karta dies, the operations in the account ______
a) should not be allowed and payment b) Can be allowed

may be made against the joint
discharge of surviving coparceners
c) should not be allowed and payment
Can be allowed for the legal heirs of d)
the Karta cannot be made even with the joint
discharge of surviving coparceners
9 On the death of an office bearer in a Club, the operations on the account should
be _____________. Any cheque drawn before the death of the office bearer has
to be ______________
a) Stopped; Returned b) Continued; Paid
c) Stopped; Paid d) Continued; Returned
10 In a Trust account, if one of the Trustees has deceased, the operations in the
account can be ________________________
a) Immediately stopped b) continued by the surviving Trustees
provided there is nothing contrary to
the Trust Deed and there is nothing
mentioned about appointment of new
Trustee
c) Continued d) Continued along with the legal heirs of
the deceased trustee
11 ____________________is a certificate granted by the Courts in India to the legal
heirs of a person dying intestate leaving debts and securities
a) Probate b) Succession Certificate
c) Letter of Administration d) None of the above
12 _______________ means the copy of the Will certified under the seal of a
court of competent jurisdiction with a grant of administration of the estate
of the testator
13 ______________________ are granted by courts to appoint appropriate people
to deal with a deceased person’s estate where property will pass under Intestacy
rules or where there are no executors living having been validly appointed under
the deceased’s ‘Will’
14 The delegation powers to settle the balance lying in the deceased’s accounts
with balance of Rs. 1 crore and above against Succession Certificates,
Letters of Administration & Probates is with
90
a) Regional Managers b) BMs of incumbency Scale IV and
above
c) DGM (B&O) d) BMs, irrespective of their Grade
15 For Deceased Settlement of accounts, Indian Succession Act 1925 will be
applicable to deceased individuals of which among the following Religions:
a) Hindus b) Sikhs
c) Muslims d) Christians
16 For Deceased Settlement of accounts, Hindu Succession Act 1956 will not be
applicable to deceased individuals of which of the following religions:
a) Hindus b) Sikhs
c) Jains d) Parsis
17 Under Hindu Succession Act 1956, who among the following is not a Class-I
legal heir for a deceased Hindu Male died intestate
a) Father b) Mother
c) Widow d) Son/Daughter
18 Under Hindu Succession Act 1956, who among the following is a Entry-I Class-
II legal heir for a deceased Hindu Male died intestate
a) Father b) Mother
c) Widow d) Son/Daughter
19 In case, the deceased is a married female Hindu, who died intestate, which
among the following is not a legal heir
a) Sons & Daughters b) Husband
c) Brothers & Sisters d) Father & Mother
20 If a female Hindu who dies intestate does not have son/daughter, the property
inherited from her parents goes to ______________whereas if the same is
inherited from husband or parents-in law, _____________will inherit the property
a) heirs of father & Children b) heirs of father & heirs of husband
c) Children & heirs of husband d) None of the above
21 A & B are brothers who maintain Savings Account with your branch with the
mandate “E or S”. A has deceased and on request, payment has been made to
B, the survivor. Meanwhile, the legal heirs of A have made a rival claim. The
Bank ______
a) Liable to make payment to the legal b) Not liable to the legal heirs.
heirs
c) Not liable to the legal heirs provided d) None of the above
the Bank had already obtained the
Consent Letter from the deceased
constituent
22 Before making payment to the legal heirs of a deceased depositor who died
intestate, you receive a court order, having jurisdiction, restraining the
payment to the legal heirs. In such a case, the payment
a) Cannot be made to the legal heirs b) Can be paid and inform the Court
c) Can be paid to the legal heirs and d) None of the above
then apply for a Stay order
23 Which of the following are the formalities required to be completed in case
of a claim made by the nominee of the deceased customer
a) Nomination form to be filled in by the b) Nominee’s KYC to be provided
Nominee to claim the balance
c) Witness by two independent d) All of the above
91
persons
24 Which of the following is not a document need to be obtained for payment of

deposits of a deceased customer for balances upto Rs.5 lac
a) KYC documents of the legal heir(s) b) Revised Claim form duly filled and
signed by the Claimant(s) other than
those who have signed the Letter of
Disclaimer
c) One Surety good for the amount OR d) Stamped Letter of Indemnity from the
two Sureties jointly good for the Claimant(s)
amount
25 In Deceased Settlement, the legal heirs can stand as a ‘Surety’
when_________________
a) The legal heir(s) who has signed the b) Legal heirs cannot stand as Surety
Letter of Disclaimer in favour of
other legal heir(s)
c) Legal heirs can stand as Surety with d)Legal heirs can stand as Surety in
the Controller’s approval exceptional cases after complying with
certain formalities like Newspaper
publication
26 Succession Certificate granted by a District Court is valid
a) In that District only b) In that State where the District is
located
c) Depends on the value for which the d) Throughout India
Certificate is issued
27 ____________is appointed by the person making the Will empowering him or
she to do all acts specified in the Will
a) Legal Administrator b) Executor
c) Solicitor d) Legal Heir
28 Probate issued by the District Court is valid _________________
a) Throughout India b) Within the District
c) Within the State d) None of the above
29 Letter of Administration (LOA) is issued by a Court in favor of an Administrator
in which of the following circumstances:
a) when the deceased has died b) when the deceased has left a Will but
intestate. has not named an Executor
c) when the Executor named therein d) Any of the above circumstance
refuses to act or himself is dead
30 In case the Deceased Settlement claims up to a threshold limit of
____________in respect of missing persons, reported missing for
a_______________, shall be settled on production of – FIR, Non-traceable report
issued by the police authorities, Indemnity from the claimant (s).
a) Rs 1,00,000/-& minimum period of b) Rs 50,000/- & minimum period of two
one year year
c) Rs 1,00,000/-& minimum period of d) Rs 2,00,000/-& minimum period of one
Five year year
31 When a foreigner dies, leaving assets in India, but having named a person not
residing in India as the executor in his will, which of the following is the
procedure to be followed:
a) legal representation will have to be b) Seek the help of the Indian Embassy
92
obtained first in India and on the stationed in the foreign country of the
strength of which letter of foreigner
administration has to be obtained in
the foreign country
c) Seek the intervention of RBI through d) legal representation will have to be
controllers obtained first in the foreigner's country
and on the strength of which letter of
administration has to be obtained in
India
32 With regard to the assets left with the bank by deceased Army, Air force and
Naval personnel, _________________________
a) Deceased Settlement to be done b) they can be disposed-off without the
with the same procedures as are production of legal representation
applicable to the public. irrespective of the amount as per the
provisions of the Army and Air Force
(Disposal of private property) Act, 1950
and Navy Act, 1957 under section 171,
172 and 174.
c) Deceased Settlement to be done d) None of the above
with the concurrence and approval
of the respective Heads of the
Defence
33 Which of the following procedures is a procedure with regard to Release of Title
Deeds of the Deceased Borrowers?
a) The persons who are entitled to b) obtain Death Certificate and keep it on
claim the Title Deeds of a deceased record, (if possible) the Legal Heir
borrower are his heirs subject to the Certificate issued by MRO may be
Personal Law by which the obtained
deceased borrower is governed
c) obtain a request letter from the legal d) All of the above
heirs of the deceased borrower for
return of the title deeds on a
specified format, obtain an Affidavit-
cum-Indemnity executed by all the
legal heirs of the deceased borrower
before a Notary Public on Non-
Judicial Stamp worth Rs.100
34 In case of death of NRI account holders, legal heirs are also NRIs or foreign
nationals, where it is not possible for the claimant(s) to come to India for
completion of formalities then he/she can
a) execute the documents abroad in b) the documents can be executed in the
the presence of officials of our presence of Indian Embassy officials
foreign offices
c) Either (a) or (b) above d) In view of the inherent risks attached to
NRIs, the legal heir has to come to the
Home Branch in India and complete
the formalities.
35 For settlement of accounts of the deceased died intestate, which of the following
cannot be accepted as a Surety
a) Visually Challenged Resident Indian b) Illiterate Resident Indian
c) Foreign Nationals d) All of the above
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36 In case of death of NRI customers abroad, to establish the veracity of the death
of the customer, which of the following is required:
a) A death certificate which is attested b) A death certificate which is attested/
/ certified by Notary Public in that certified by the Embassy / High
country Indian Embassy / High Commission of that foreign country in
Commission in that country (or) an India
official in SBI's Foreign Office
c) Only (a) is correct d) Both (a) and (b) are correct
37 In case of death of NRI customers abroad, which of the following document as
a corroboratory evidence, confirming incidence of death
a) Evidence of settlement of an b) Evidence of settlement of proceeds of
insurance claim at foreign center on bank accounts at foreign center on
account of death of our account account of death of our account holder
holder
c) Evidence of settlement of terminal d) All of the above
benefits by the employer at foreign
center on account of death of our
account holder
38 TDS is to be deducted on Interest payments for deposits maintained with us for
which of the following:
a) Securities Exchange Board of India b) Pension Fund Regulatory and
Development Authority
c) Insurance Regulatory and d) Association of Mutual Funds in India
Development Authority
39 No tax is required to be deducted on following payments made to the
scheduled Banks
a) bank guarantee commission b) cash management service charges
c) depository charges on maintenance d) All of the above
of DEMAT accounts
40 Which of the following related to Deceased Settlement of Deposits has no legal
sanctity
a) Legal Heirship certificate issued by b) Succession Certificate
the Revenue Department
c) Probated Will d) Letter of Administration
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS B C D D B B D A C B
Q 11 12 13 14 15 16 17 18 19 20
ANS B A C D D D A A C B
Q 21 22 23 24 25 26 27 28 29 30
ANS B A D C A D B C D A
Q 31 32 33 34 35 36 37 38 39 40
ANS D B D C C D D D D A
Back to Index page
94
Safe Deposit Lockers, Safe custody, Articles etc
SAFE DEPOSIT LOCKERS AND SAFE CUSTODY
1 The Relationship between Banker and Locker hirer in case of locker in
SBI is ______
a) Debtor – Creditor b) Licensor – Licensee
c) Bailor – Bailee d) Principal -Agent
2 In respect of Lockers, Power of attorney holder can
a) Operate the locker and also b) Operate the locker but cannot
surrender it surrender it
c) Can give fresh mandate for operation d) None of these
3 Nomination facility for safe deposit lockers is as per Sec……. of. Banking
Regulation Act 1949
a) Sec 45ZA b) Sec 45ZB
c) Sec 45ZE d) Sec 45 ZD
4 What is the maximum number of nominations allowed in case of jointly
operated locker?
a) Only One Nomination b) Two Nominations
c) Three Nominations d) No such restriction
5 A locker cannot be given on hire to the following:
a) Minor b) Visually impaired
c) Illiterates d) Registered trust
6 The officer-in-charge of Lockers should check the locker room
a) Immediately after the locker hirer b) At the end of the day
has used it.
c) Randomly in between d) As per new guidelines, checking is
not required
7 Where the locker has remained inoperative for more than ___ years for high
risk category, the branch should immediately contact the locker hirer:
a) 1 year b) 2 years
8 Nomination in Safe Deposit Lockers can be made by holder having which of
the following type of operation
a) Joint operation b) E or S type
c) F or S type d) L or S type
9 A company wants to hire a Safe Deposit Locker in the branch. What the
locker in charge will do?
a) take a large deposit and give the b) give the locker after getting board
locker resolution
c) locker cannot be given to non- d) seek instructions from BM
individual
10 A customer wants to insure the content of the locker at his own cost
a) Can be accepted b) We cannot accept
c) After insuring, details should be d) Bank’s clause to be added to protest
entered in BD register the bank
11 Where the locker has remained inoperative for more than __ years for medium
risk category, the branch should immediately contact the locker hirer.
95
12 The signatures of a visually impaired locker hirer on the locker access
register should be witnessed by a person
a) Any person known to the locker b) Preferably a customer of the Bank
hirer or a branch official other than the
Locker in-charge
c) Independent witness acceptable to d) Any one of the above
the bank
13 Items that are left inadvertently in the locker room are kept as……
a) Single Custody with BM b) Joint Custody with BM and Cash
Officer
c) Joint Custody with BM/Service d) None of the above
Manager and Cash Officer
14 CBS will deduct annual locker rents in advance for the Financial Year
on___
a) 1st April b) 2nd April
c) 31st March d) 3rd April
15 Succession certificate does not cover
a) Gold loan ornaments b) Safe deposit lockers
c) Articles in safe custody d) All of the above
16 In case of locker, how many operations are free in a year?
a) 15 b) 10
c) 5 d) 12
17 Locks of surrendered lockers should be interchanged among the surrendered
lockers before allotting to a new hirer :
a) TRUE b) FALSE
c) No such instructions d) Not necessary
18 Safe Deposit Lockers can be allotted to
a) Blind/Visually impaired b) Illiterate
c) NRI d) All the above
19 Fixed Deposit should be insisted to the value of ________for allotment of
Safe Deposit Locker
a) Rs 5 Lakhs b) Cover locker rent for 3 years and
charges for breaking open of
lockers
c) Rs 10 Lakhs d) No deposit to be insisted
20 Safe Deposit Locker should be allotted on
a) BM Recommendation b) VIP Customer
c) First Cum First Serve Basis d) Based on the Period of Connection
21 Search Warrant can be issued by Income Tax Dept for Safe Deposit Lockers
under
a) Sec 132 of IT Act b) Sec 138 of IT Act
c) Sec 139 of IT Act d) Sec 140 of IT Act
22 Allotment of Safe Deposit Locker should be done after
a) Obtaining KYC Documents b) Risk Categorisation
c) Both a and b d) Either a or b
23 Access to Lockers should be by verifying
a) Signatures b) Key of Safe Deposit Lockers
c) Photos in case of illiterates d) A or C
96
24 Whether Bank is responsible for the contents kept in the Safe Deposit Locker
a) Yes b) No
c) Yes, if declared d) None of the above
25 Break Opening Charges for Safe Deposit Lockers has to be borne by
a) By Customer b) By Bank
c) By Customer and Bank in 50% d) None of the above
ratio
26 Customer want to use additional lock in the locker by way of padlock.
Whether it is accepted
a) Yes. b) No
c) Yes. But a separate agreement to d) Only with the controller approval we
be obtained from customer can allow for VIP / NRI customers
27 The Safe Deposit Locker Room should be constructed as per
a) No Specifications b) Class A Specifications
c) Class B Specifications d) None of the above
28 When there is no Nomination for Safe Deposit Lockers Access may be allowed
by
a) Succession Certificate b) Letter of Administration
c) Probate d) Any of the above
29 Overdue Charges is recovered at ___percent if due for more than 1 year
a) 50% b) 10%
c) 75% d) 40%
30 Safe custody receipt in respect of branch duplicate keys is kept in the
a) Joint custody of the branch b) Sole custody of the branch manager
manager and manager cash in his hand safe
c) Joint custody of the accountant and d) Sole custody of accountant
cash officer
31 In case of Joint A/c (E or S), locker can be surrendered, and the
account closed
a) By both of them jointly b) By either of them
c) By First Hirer singly d) Either a or b
32 A authorizes B for operating his locker. B approaches the bank for
surrender thereof. How would you react?
a) B can surrender the locker b) B cannot surrender the locker
c) If contents are nil, he can surrender d) None of the above
33 In lockers rent is collected at _______ Intervals.
a) Half Yearly b) Yearly
c) One year in advance d) Once in 2 years
34 When a vacancy arises, the wait listed locker hirer will be advised by
registered post to acquire the locker in
c) 15 days d) No time limit
35 Keys of unrented lockers will be in the custody of
a) same officer cannot have the b) if the locker-in-charge has the
custodian and hirers custodian key, hirers’ keys
should be with a supervising
official of at least MMGS II
grade or cash officer
97
c) both 1 & 2 d) none of these
36 When the locker is hired in joint names and the key is lost, the advising
letter should be signed by
a) all the hirers b) hirers as per mandate of operation
c) any one of the hirers d) PA holder of hirer holding mandate
to operate
37 On receipt of notice of revocation of mandate from any one of the joint
hirers
a) access should be allowed jointly b) access should be denied until fresh
mandate from all the joint hirers
received
c) hirers advised to surrender the d) none of these
locker
38 When Medium Risk classified customers have not operated lockers for 3
years
a) the branch advises the hirer to b) if the hirer fails to respond, the
operate the locker or surrender it branch may consider breaking
open of the locker
c) regular payment of locker rent is no d) all the above
exception for this procedure
39 No of free visits for locker operation per year is restricted to 12.
Thereafter Rs to be charged per visit
a) 50 b) 50+ GST
c) 100+ GST d) 100
40 In case of Loss of Key of the locker, a service charge of Rs……. is recovered
in addition to actual expenditure incurred for breaking open the locker and
changing the lock by manufacturers of lockers.
a) Rs.509/- b) Rs. 1000/- + GST
c) Rs.500/- + GST d) Rs. 509 + GST
41 Where locker rent is not paid 3 months after the due date, notice should be sent
on
a) COS 401 b) COS 402
c) COS 405 d) COS 406
42 One Time Locker Registration Charge for Small and Medium Lockers are
a) 800+GST b) 750+GST
c) 600+GST d) 500+GST
43 One Time Locker Registration Charge for Large and Extra Large Lockers are
a) 800+GST b) 1000+GST
c) 750+GST d) 500+GST
44 What is the concession available on Locker Rent for Salary Package
Customers under Platinum Category?
a) 25% b) 50%
c) No such concession available d) 10%
45 What is the concession available on Locker Rent for Salary Package
Customers under Diamond Category?
a) 25% b) 15%
c) 50% d) 20%
98
46 What is the concession available on Locker Rent for Exclusif / Wealth
Account Holders
a) 25% b) 15%
c) 50% d) No such concession available
47 Locker should be broken in the presence of number of
independent witnesses
a) 10 b) 5
c) 2 d) 1
48 Concession for locker rent will be given in CSP variants as under
a) 15% for Diamond b) No concession for Silver & Gold
c) 25% for Platinum d) All the above
49 Which of the following is correct about charges payment at the time of
hiring the locker?
a) Current year pro-rata rent+ 1-year b) Current year pro-rata +GST + 3
rent in advance + registration years FD
charges +GST
c) Current year pro-rata + GST. d) Current year pro-rata rent+ 3-year
Advance rent may be waived at rent in advance + Registration +GST
discretion.
50 One locker per cabinet should always be kept vacant for:
a) For interchange of locks b) Keeping vacant locker keys
c) For malfunctioning lockers swap d) Allotting to HNI during emergency
51 Notice regarding payment of Locker rent should be sent when?
a) 10 days after due date b) 15 days after due date
c) 1 week After due date d) on or before the due date
52 Locker should be broken open in the presence of a committee consisting
of
a) one officer of the branch, one officer b) one officers of the branch and one
from RBO and two independent independent witnesses
witnesses
c) two officers of the branch and two d) one officer, one cash in-charge of
independent witnesses the branch and two independent
witnesses
53 For break-open of locker for which rent is overdue for more than one year,
controller's permission is
a) Required b) For Scale IV and above branches
c) For Scale III and above branches d) Not required
54 Contents of the locker, after break-open, should be kept as
a) Safe custody item under single b) Safe custody item under custody of
custody of Cash officer accountant / BM
c) Safe custody item under joint d) Safe custody item under joint
custody custody
55 Locker rent is credited in which BGL head?
a) 93284 b) 98324
c) 98524 d) 95284
56 Periodicity for balancing Safe custody/Security is
a) Half yearly b) Yearly
99
c) Quarterly d) Monthly
57 When the bank accepts articles for keeping in safe custody, the relationship
between the banker and the customer is that of _________
a) Bailor and Bailee b) Principal and Agent
c) Trustee and Beneficiary d) Bailee and Bailor
58 A minor wants to keep certain articles in safe custody. The Bank -----------
a) Can accept and keep articles in b) Can accept if it is a fixed deposit in
safe custody his name
c) Will not accept the articles d) None of the above
59 Articles left in safe custody cannot be delivered on the basis of a succession
certificate because
a) These are not included in debt and b) It is not allowed under RBI Act
securities as defined under Indian
Succession act 1925
c) It is not permitted under NI Act d) None of the above
60 In case of accepting articles in safe custody, the nomination facility is available
under
a) BR Act b) NI Act
c) RBI Act d) None of the above
SAFE DEPOSIT LOCKERS AND SAFE CUSTODY -
ANSWER KEY
Q 1 2 3 4 5 6 7 8 9 10
ANS b b c b d a a a c b
Q 11 12 13 14 15 16 17 18 19 20
ANS c b c b d d a d b c
Q 21 22 23 24 25 26 27 28 29 30
ANS a c d b a a c d d b
Q 31 32 33 34 35 36 37 38 39 40
ANS a b c c c a a d c b
Q 41 42 43 44 45 46 47 48 49 50
ANS d d b a b a c d a a
Q 51 52 53 54 55 56 57 58 59 60
ANS d c a c b c a b a b
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100
Legal Issues / Laws relevant to Bankers
Banking Regulation Act, 1949
Applicability Nationalized Banks / Non – Nationalized Banks / Cooperative Bank
SECTION DEALS WITH
5 (b) Defines banking as ‘accepting, for the purpose of lending or investment, of
deposits of money from the public, repayable on demand or otherwise, and
withdrawable, by cheque, draft, order or otherwise.
7 No company other than a banking company shall use words “bank”, “banker”,
“banking” or “banking company” as part of its name under this section
10 BB Gives power to RBI to appoint chairman of the Board of directors appointed on
a whole-time basis or a managing director of a banking company
11 Requirement of as to minimum paid up capital and reserves.
19(2) The Bank shall not hold shares in any company an amount exceeding thirty per
cent of paid up share capital of that company or thirty per-cent of its own paid
up capital share capital and reserves, whichever is less.
20 Restrictions on loans and advances
20 (1) Cannot lend against own shares, will tantamount to depletion in capital
21 Powers of RBI to control advances by banking companies
22 Licensing of banking companies
23 Prohibits banks from opening a new place of business (branches) in India or
abroad, change of premises otherwise than within the same city, change
otherwise than within the town or village, without prior approval of RBI
24 SLR, Max 40%, Minimum NIL
26 Return of Unclaimed Deposits over 10 years
29 To publish Balance Sheet, Profit & Loss
35 Inspection by RBI
45 Z A Nomination to Deposit accounts
45 Z B Notice of claims of other persons regarding deposits not receivable
45 Z C Nomination to Safe Deposit Articles
45 Z D Notice of claims of other persons regarding articles not receivable
45 ZE Nomination to Safe Deposit Lockers
45 ZF Notice of claims of other persons regarding safety lockers not receivable
47 A Gives power to RBI to impose penalty
RBI Act, 1934
The Reserve Bank of India was established on 01.04.1935 based on recommendations of

1926 Royal Commission on Indian Currency and Finance, also known as Hilton – Young
Commission.
SECTION DEALS WITH
2 (e) A schedule bank means a bank whose name is included in the 2nd schedule of RBI
Act 1934 and that such banks have paid capital and reserves of not less than Rs.
5 lakh.
20 Obligation of Bank to transact Government business
21 RBI has right to transact Govt. business in India
101
21 A Bank to transact Government business of States on agreement
22 RBI has sole right to issue bank notes
26 (1) Defines legal tender of notes
26 (2) Withdrawal of legal tender of notes
28 & 58(2) Note refund rules
31 No Demand Draft to be issued payable to bearer. Only RBI or central government
can issue and accept promissory notes / BOE that are payable to bearer on
demand.
42 Defines Scheduled Banks, listed in Schedule 2
42(1) Defines Cash Reserve Ratio (CRR)
42(6) CRR – Maximum No Ceiling, Minimum – NIL, No interest payable on CRR
balances by RBI since 2006
45 SBI, Associates, Nationalised Banks to transact govt business as Agent of
RBI
45 (U) Defines repo, reverse repo, derivative, money market instruments and securities.
49 Bank Rate
58 Note Refund Rules
Negotiable Instruments Act, 1881
Negotiable transferable from one person to another for consideration

Instrument a written document which created in favour of some person
“Negotiable a document which entitles a person to a sum of money and which is
Instrument” transferable (like cash) by delivery or endorsement and delivery
SECTION DEALS WITH

13 NI means and include Promissory Note (PN), Bill of exchange (BoE)
and Cheque.
4 Definition of Promissory Note
5 Definition of Bill of Exchange
6 Definition of Cheque
8 Holder
9 Holder in due course – Any person who for valuable consideration
becomes the possessor of a negotiable instrument payable to bearer or
the endorsee or payee thereof
10 Payment in due course – Payment made as per apparent tenor in good
faith without any negligence and under circumstances which do not
afford a reasonable ground for believing that he is not entitled to receive
payment of the amount mentioned therein
15 Endorsement – means signing on the face or backside of an instrument
(or on aseparate paper, called allonge) for the purpose of negotiation
i.e., transfers ofcheque to next person. Person transferring the
instrument is called endorser. He can be drawer, payee or an existing
endorsee. The person to whom it is transferred is called an endorsee
18 Difference in words and figures – Amount in words will be paid
102
20 Inchoate Instrument: A holder of an inchoate instrument has an
implied authority to complete the instrument.
26 Minor can draw, endorse and accept a Negotiable Instrument, without
binding himself/herself i.e. he/she is not liable.
31 Liability of Drawee of cheque: Banker has to compensate the drawer for
wrongful dishonour.
65 Presentation should be made during the usual hours of business
85 Protection to Paying Banker
85 A Protection to Paying Banker in case of Bank drafts, similar to cheque
u/s 85
123 General Crossing: When two lines are put with or without words, it is
general crossing). Here lines are important, words are not important.
(Cheque having the words Mumbai within two lines, can be paid in Delhi
or another place also).
124 Special Crossing: When only name of the bank is written within the lines
or without lines, it is special crossing
128 Protection to Paying Bank: Paying bank gets protection on payment of
crossed cheques u/s 128 by ensuring that the payment is made in due
course
131 Protection to Collecting Banker: U/s 131 for cheque and u/s 131A for
demand draft, banks get protection against conversion, when they
collect cheques subject to fulfilment of the conditions that:
(a) cheques are collected for customers (as agents) in properly
introduced accounts, (b) cheques are crossed (generally or specially)
before presentation to the paying bank and (c) cheques are collected in
good faith and without negligence
138 to 142 Bouncing of cheques –Summary proceedings: Fine upto Rs.5000 or
imprisonment upto 1 year or both. Regular proceedings: Fine upto
double the cheque amount or imprisonment upto2 years.
143A & 148 Interim Compensation: The Bill inserts a provision allowing a court
trying an offence related to cheque bouncing, to direct the drawer
(person who writes the cheque) to pay interim compensation to the
complainant. This interim compensation may be paid under certain
circumstances, including where the drawer pleads not guilty of the
accusation. The interim compensation will not exceed 20% of the
cheque amount and will have to compensation.
Deposit in case of appeal: The Bill inserts a provision specifying that if
a drawer convicted in a cheque bouncing case files an appeal, the
appellate court may direct him to deposit a minimum of 20% of the fine
or compensation awarded by the trial court during conviction. This
amount will be in addition to any interim compensation paid by the
drawer during the earlier trial proceedings.
Returning the interim compensation: In case the drawer is acquitted

(during trial or by the appellate court), the court will direct the
complainant to return the interim compensation (or deposit in case of an
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appeal case), along with an interest. This amount will be repaid within
60 days of the court’s order
Material An alteration that changes the basic direction of the drawer and is not
Alteration authenticated by him, is called material alteration which include:
1. Change in amount, name of payee or date 2. Mutilation of cheque
3. Cancellation of crossing or converting special crossing into general
crossing. 4. Converting order into bearer
What is not 1. Completion of amount, name of payee or date by the holder.
Material 2. Crossing of an uncrossed cheque 3. Cancellation of bearer or writing
Alteration of order
Right to Information Act, 2005
CPIO Central Public Information Officer (Regional Manager)

CAPIO Central Assistant Public Information Officer (Branch Head)
GM-Network will be the Appellate Authority
Fee Fee of Rs.10 to be remitted along with the application, For Below Poverty
Line – No fee, Reply to given within 30 days, Maximum 35 days if it involves
transfer from one office to another, Reply to be given within 48 hours if it is
pertaining to question of life & liberty.
Options available to Accept, Reject or Transfer –Delay in giving reply -
Penalty 250/- per day and Max of Rs.25,000/-
Indian Contract Act, 1872
SECTION DEALS WITH

10 What agreements are contracts (Valid Contracts)
11 Minor cannot enter into any contract. It will be Void ab-initio
25 Agreement without consideration is void
42 Joint promisors liable both jointly and severally
59-61 Clayton’s Rule
68 Loans to Minors against minor’s estate can be given. Minor cannot be
held liable with his estate can be attached.
128 Surety’s liability is co-extensive that of the borrower
131 In case of death of the guarantor (where there is no contrary contract),
the guarantee stands withdrawn/ terminated
133 Any change in the contract, without surety’s consent discharges the
surety
171 Definition of Lien: Lien is the right of one person to retain possession of
goods owned by another until the possessor’s claims against the owner
have been satisfied.
Particular Lien: Section 170 of the Indian Contract Act, 1872 which confers
on the Bailee, the right of particular lien. A particular lien gives right to retain
possession only of goods in respect of which the changes or dues have
risen.
General Lien: Section 171 of the Indian Contract, 1872 confer on Bailee the
right of General Lien. It gives the right to possession until the whole balance
of amount is paid.
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172 Definition of Pledge, Pawnor and Pawnee
182 Agent and Principal defined
230 Agent cannot personally enforce, nor be bound by, contracts on behalf of
principal.
Indian Partnership Act, 1932
SECTION DEALS WITH

4 Definition of Partnership, “the relation between persons who have
agreed to share the profits of a business carried by all or any of them
acting for all. The minimum number is 2 and the maximum number is
50
30 A minor can be admitted to the benefits of a partnership. Minor’s share
is liable for the acts of the firm but the minor is not personally liable for
any such act.
58 Registration of the firm is optional
69 A registered firm can sue third parties to enforce rights arising from a
contract. An unregistered firm cannot; but, the creditors of an
unregistered firm can sue the firm.
Limitation Act 1963
The Limitation Act contains 32 Sections and 137 Articles. The articles have been divided
into 10 parts. The first part is relating to accounts, the second part is relating to contracts,
the third part is relating to declaration, the fourth part is relating to decrees and
instrument, the fifth part is relating to immovable property, the sixth part is relating to
movable property, the seventh part is relating to torts, the eighth part is relating to trusts
and trust property, the ninth part is relating to miscellaneous matters and the last part is
relating to suits for which there is no prescribed period.
Type of Loan Limitation Date of commencement of limitation
Period period
Default in the payment of any of the
TL 3 years
instalments or from the date of
acknowledgement of debt
Equitable Mortgage 12 Years From the date when the mortgage debt falls
due
Personal Liability of the
3 Years 3 years from the date of default of each
mortgagor instalment
Guarantor From the date of demand and refusal /
3 Years
breach on the part of the guarantor to carry
out the obligation
Cash Credit / OD From the date of document /
3 Years
acknowledgement of debt
The Payment and Settlement Act, 2007
SECTION DEALS WITH

25 Dishonour of Electronic Funds Transfer for insufficiency, etc., of funds in
the
account punished with imprisonment for a term which may be extended to
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two years, or with fine which may extend to twice the amount of the
electronic funds transfer, or with both. the beneficiary makes a demand for
the payment of the said amount of money by giving a notice in writing to the
person initiating the electronic funds transfer within thirty days of the receipt
of information by him from the bank concerned regarding the dishonour of
the electronic funds transfer; the person initiating the electronic funds
transfer fails to make the payment of the said money to the beneficiary
within fifteen days of the receipt of the said notice The provisions of Chapter
XVII of the Negotiable Instruments Act, 1881 (26 of 1881) shall apply to the
dishonor of electronic funds transfer to the extent the circumstances admit.
Income Tax Act, 1961
SECTION DEALS WITH

40 Expenditure in excess of Rs.20,000/ - proceeds if only made by
Crossed Cheque – otherwise NO DEDUCTION shall be allowed in
respect of such expenditure
133(6) To compel any bank to furnish specific information - However, approval
required from Commissioner or Director of Income Tax
194 TDS
269 T Deposit proceeds of Rs.20,000/ - or more to be given by Crossed DD or
Pay Order or Credit to Account
Consumer Protection Act, 2019
Purpose Transactions in respect of Goods & Services. Better protection to Consumers. If a

of Act consumer feels aggrieved, he/she has to file a complaint within two years from the
date of cause of action.
Three TIERS of Consumer Redressal Forums are:
District Retired Dist. Court Judge – Claims up to Rs. 50 lakh– Verdict can be challenged within
45 days at State Forum by depositing Rs.25,000/- or 50% of the compensation
whichever is lower
State Retired High Court Judge – Claims above Rs. 50 lakh and upto Rs. 2 Crores – Verdict
can be challenged within 30 days at National Forum by depositing Rs.35,000/- or
50% of the compensation whichever is lower
National Retired Supreme Court Judge – Claims above Rs.2 Crores – Verdict can be
challenged within 30 days at Supreme Court by depositing Rs.50,000/ - or 50% of the
compensation whichever is lower
If any one does not comply with the order, he may be punished with imprisonment for a term of
one month to three years of a fine of Rs.25,000/- to 1 lac or both.
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IMPORTANT POINTS ON LAWS RELEVENT TO BANKING
1. As per section 26 of the Negotiable Instruments Act, a Minor can draw, endorse, accept a
negotiable instrument but he cannot: bind himself
2. A has granted Irrevocable Power of Attorney in favour of B for one year. After 3 months, A
revokes the Power of Attorney. A cheque signed by B is presented for payment_ What will you
do?
The cheque will not be paid because POA can be withdrawn before maturity and once
it is revoked, no cheque signed by agent can be debited to account of Principal
3. What is the Doctrine of Ultra Vires in the context of a limited company?
Any act by the directors beyond the object of the company is considered ultra vires the
company and company is not bound by such act.
4. A minor who was admitted to the benefits of partnership has become major. Within how
much period, he has to decide to remain partner in the firm or not?:
within 6 months of attaining majority or 6 months of knowing that he is the partner in
the firm whichever is later.
5. If on a cheque words "Account Payee" is written between two parallel lines or with the name
of a bank, then:
the cheque can not be endorsed.
6. Which type of crossing is required to be done if the drawer wants that in case of
endorsement, the title of transferee of the cheque should not be better than the title of the
transferor:
Not Negotiable Crossing
7. In the case of dishonour of a cheque due to insufficient funds, for enforcing rights under
section 138 of the Negotiable Instruments Act 1881, the holder should send a notice to the
drawer within:
30 days from the date of receipt of notice regarding dishonour of the instrument.
8. The Limitation period for filing case in case of dishonour of cheque due to insufficient funds
is:
1 month from the date of cause of action.
9. Objectives for which a company has been formed are given in:
Memorandum of Association
10. Full form of BCBS is
Basel Committee on Banking Supervision.
11. Direct Impact of increase in CRR is : Controlling Liquidity
12. Banks cannot issue Demand Draft payable to Bearer as per provisions of :
Section 31 of the RBI Act
13. Grace Period is allowed in the case of: Usance Bills and Usance Promissory Notes
14. Indian Banks are required to maintain minimum Capital Adequacy Ratio of : 9%
15. In the case of individuals and HUF, tax will be deducted at source if the interest on term
deposit in a financial year is : more than Rs 10,000
16. If Power of Attorney is executed outside India it should be stamped within:
90 days of its first arrival in India
17. For its implementation, the complainant should accept the award given by Ombudsman
within: 30 days of the receipt of the copy of the award.
18. When proceeds of cheque are given before clearance of the cheque the banker will be
called: Holder for Value
19. In the case of Wrongful dishonour of cheque, to whom the bank is liable?Drawer
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20. If date on a cheque is prior to the date of its presentation, it is called: Ante Dated cheque
21. What is minor's liability in HUF Account: Minor is not liable
22. When does the right of nominee starts in respect of a deposit account?
After death of all depositors
23. The crossing on a cheque is required to be can cancelled. Who can do so: Drawer
24. RBI controls money supply through: change in CRR
25. Loan given to a director can be waived: after permission of RBI.
26. Under the Ombudsmen scheme, the Bank has to reply to the objection of the complainant
within: one month
27. A post-dated cheque is passed in the account of a customer. But another cheque which
was in order was dishonoured due to insufficient funds. What is the liability of the Banker?
Bank is liable to the drawer for paying post-dated cheque as bank is not justified in
paying post-dated cheque. The bank will be liable to drawer for damages on account of
wrongful dishonour of cheque.
28. Which type of preferential shares are treated as part of Tier I capital of the Bank?:
Perpetual Non-Cumulative Preference Shares
29. Banks can ask for deposit of advance rent on hiring a locker for a period up to : 3 years
30. Customer of your bank asks for cash payment of crossed DD. What would you do?
Generally, payment only through bank account. However, bank can pay after duly
satisfying the genuineness of the draft and payee, but bank will continue to be liable to
true owner if recipient is not true owner.
31. A cheque is presented for payment in which the amount in words and figures is different.
Bank should pay which amount? amount written in words will be paid.
32. Whether a Private Limited company can be a partner with Public Limited company to form
a Partnership? Yes
33. In the context of Nomination,
Signatures of nominee not required on nomination form. Nominee's name should be
mentioned on FDR if agreed by the customer.
34. A bearer cheque of Rs.7,000/- was presented. The cashier informed that the cheque
cannot be passed as the balance is less by Rs.700/-. The tenderer credited the amount of
shortfall and the cheque was paid. Customer disputed the transaction. Whether bank is
liable? Yes. For disclosing balance to third party, bank is liable to account holder.
35. When an order passed by Banking Ombudsman is accepted by the complainant, the same
should be complied within:
1 month from the date of receipt of acceptance from the complainant.
36. Penalty for delay is per day if information is not furnished within prescribed time under
Right to Information Act: Rs. 250 per day with maximum being Rs. 25,000/
37. A crossed DD was paid by cash. What risk is there for the Bank?
Bank will be liable to true owner of the DD if payment made to a person other than true
owner (Section 129 of N I Act).
38. A cheque is written in English and Regional Language. Whether it can be paid?
Yes. A cheque written in different language can be paid if otherwise in order.
39. Who cannot become a partner in a firm as per Supreme court judgment HUF
40. Introducers liability / responsibility in case of an account holder defrauding Bank is: To
assist the Bank in locating the a/c holder - does not have legal liability
41. Nomination -Minor can be a nominee.
42. Inoperative accounts:
2 Years & above not operated.
43. RTI Act - party seeking information need not disclose the reasons for which the
information sought for.
44. Counterfeit notes returned after police verification, the same has to be preserved for 3
108
years subject to half yearly verification.
45. Validity period of cheque reduced to 3 months from1.4.2012 as per:
RBI Guidelines under sec 35A of B R Act
46. Crossed cheque payment across the counter to the authorized Officer of collecting Bank
– can be made and there is no violation as per NI Act. 255.
47. The consequence of non-registration of Partnership – firm cannot sue others for its
dues.
48. Banks are required to implement the award of Ombudsman unless a decision is taken to
appeal against the same within one month from the date of receipt of acceptance of the
award by the complainant.
49. Account holder A & B want to substitute their name with the name of their sons C & D in
the account. What should the bank do?:
Substitution of all names is not allowed. At least one of the original account holder
should be retained in the account.
50. When only image of cheque is sent to the paying bank while sending cheque for collection
instead of sending the physical cheque, the process is called: Cheque Truncation
51. A Cheque partly written in English &partly in regional language is presented for-payment
What should the bank do?
May be paid, if otherwise in order and the language other than. English is the regional
language of the area where the cheque is presented.
52. An authority has been granted in an account You have received information about the
death of the Principal. Today, you receive a cheque signed by the agent which is dated prior
to the death of the Principal. What should the bank do? :
Cheque cannot be paid as authority of agent comes to end with the death of the
Principal.
53. You are maintaining current account in the name of the Trust. You receive notice of death
of one of the trustees. After this notice, a cheque signed by the deceased trustee is presented
for payment. What should the bank do?: Cheque may be paid, if otherwise in order.
54. As per Consumer Protection Act, the period for filing appeal to State Commission against
decision of the District Forum is: maximum 30 days
55. Who cannot be full-fledged partner: Minor
56. Can Karta of HUF appoint Agent or delegate the powers to other co-parcener:
Yes, he can do so.
57. Money deposited after receiving order may be attached in the case of:
attachment order
58. Original & duplicate draft presented simultaneously for payment:
Duplicate should be paid & original should be returned.
59. Company has registered office at Delhi, factory at Kolkata & loan taken at Mumbai. For
creating equitable mortgage title deeds can be deposited at: any notified city.
60. Reasons for avoiding advance to Un-Registered Partnership Firm:
Firm cannot sue against Any one for recovery of its debts, but anyone can sue against
the firm.
61. What is the effect of 'Not Negotiable Crossing'?: Transferee does not get better title
than the transferor.
62. Payment of cheque can be stopped by:only Drawer of the cheque
63. Account payee crossing defined in:-Not defined anywhere
64. What is the current rate of interest paid on CRR?:NIL
65. How can be the transferability of Bill of exchange can be restricted?
By making restrictive endorsement
66. If on a Bill-of Exchange, two parallel lines are drawn and not negotiable is written between
the lines, what kind of the crossing will be there:
109
Provisions relating to crossing are not applicable to Bill of Exchange.
67. Within priority sector, what is the allocation to weaker section?25%
68. Maximum time with in which reply must be given under Right to information act? 30 days
69. What is the status of Nominee? Trustee of Legal heirs
70. Safe deposit vault is governed by provisions of: Transfer of Property act
71. A cheque signed by agent has been presented after his death for payment. What should
the bank do?: The cheque will be paid if otherwise in order.
72. Purpose of star series notes: To replace defectively printed notes
73. Customer-bank relationship in locker account: Lessee-Lessor
74. Upto what amount District forum can be approached under Consumer Protection Act?:
Rs. 50 lakh
75. Appeal against the award of Ombudsman can be made by the bank within:
30 days of receiving the acceptance from the complainant.
76. Cheque issued by director of a company and presented after his death will be: Passed if
in order
77. What would be the action of central bank in recession?:
create liquidity by decreasing CRR and lower the repo rate.
78. Ante dated cheque like cheque dated 15.12.07 is presented for payment on 1.1.08
whereas_____ the account was opened on 20.12.07 :
Cheque should be passed
79. If amount in words and figures differ on a cheque and amount written in words is higher
than the amount written in figures, then as per sec.18 of NI Act, which amount should be paid?:
amount written in words
80. A bank branch receives a counterfeit note of Rs.500, which customer wants back. What
the bank should do :
Impound the currency note, but No credit of full amount to customer.(No credit to
customer’s account is to be given for counterfeit notes)
81. customer service Committee meeting held on :Monthly basis
82. A person wants to open a joint account with his wife in such a way that the account can
be operated by him only during his lifetime and she should be able to operate the account only
after his death. The account has to be opened with the instructions:
'Former or survivor
83. For wrong dishonour of the cheque the bank is liable to: the drawer of the cheque
84. Banks print cheque books having similar particulars. The format of cheque is prescribed
by which Act : Not defined in any Act. It is as per practice. CTS 2010 advised by RBI
85. Which crossing takes away the feature of assumption of defective free title available to the
transferee: Not negotiable crossing
86. Who is appointed to tackle public complaints against the public authorities :
Ombudsman
87. The facility of nomination is not available to Trust account because it is account : Non-
individual (facility of nomination is available only in the case of individual(s).
88. The true owner of a cheque has been deprived of his right by collection of the cheque for
a different person. This is called Conversion
89. As per recent RBI/Govt. guidelines, pensioners can open account jointly with: spouse, to
be operated as either or survivor or former or survivor.
90. While paying a bearer cheque, signatures are obtained on the back side of the cheque.
Why? : As evidence of payment
91. Whether Minor can nominate?

no. On his behalf nomination will be done by a person legally competent to act on his
behalf.
110
92. Cheque is dated before date of its presentation is called:
Antedated cheque
93. An endorsement in which endorser excludes his liability is called : sans recourse
94. When a company is financed against the security of hypothecation or mortgage of its
movable property, the company is required to file particulars of charge with:
Registrar of Companies
95. Who is called as Holder as per N I Act? Who is entitled to possession of the instrument
in his own name (actual possession is not necessary)?
96. If a cheque is dishonored due to insufficient funds, then as per section 138 of N I Act, court
may award imprisonment up to: 2years
97. On the face of a cheque, the name of a bank is written without two parallel lines. This will
amount to : special crossing
98. A/c payee crossing is defined in : it is not defined in any Act. It is as per practice
99. Nomination facility for deposit accounts is available under:45ZA&45 ZB of the BR act
100. Maximum amount of deposit which a bank may ask while allowing locker facility to a
customer: Advance rent for 3 years and locker breaking charges
101. A solicitor has account in his name and in the name of his client. Garnishee order is
received in the name of the solicitor. Whether the same will be applicable in the name of client
also: No because two accounts are not in the same right and same capacity.
102. Which of the following is not a material alteration? Changing bearer to order
103. A bill issued without consideration is called: Accommodation Bill
104. There is a joint account in the name of A&B. A cheque is drawn by A but the alteration in
the amount is authenticated by B. Whether bank can pay the cheque:
Yes, provided the operation is either or survivor.
105. The term used for conversion or transfer of property derived from a criminal offense for
the purpose of concealing, or disguising, the illicit origin of the property is called: Money
laundering
106. In which of the following situations bank will not be a holder in due course?
When bank credits the account of the customer after receipt of funds on account of
cheque sent for collection
107. The rate at which RBI rediscounts the usance bills of banks is called: Bank Rate
108. In the case of IPO, the company is required to allot shares or make refund within:
30 days of the closure of the issue in case of fixed price public issues; 15 days in case
of book built issues and 15 days in case of right issues
112. Bank can charge collection charges of not more than for outstation cheques of Rs.10000
to Rs1 lac in saving bank Rs.100
113. A cheque on which signatures of drawer have been forged irrespective of the cleverness
in forgery and though these appear to be same as that of the drawer.
114. FIU stands for : Financial Intelligence Unit (India)
115. Two cheques have been presented to you as paying banker. One is dated prior to
opening the account and other is dated prior to issue of cheque book. What will you do as
paying banker?: Both cheques will be paid.
116. KYC and FIU in India are associated with: preventing money laundering
117. Articles of Association mentions: directors' powers
118. In case of a jointly operated joint account, the nominee can obtain payment, when : none
of the account holder is alive
119. A person having locker has expired. The nominee comes. A sealed cover is found. What
will you do ? :
It will be delivered to him as part of locker contents without opening the packet.
120. A bill was presented on 10.5.2005 and accepted on 12.5.2005. The bill was due for
111
payment on 29.07.2005 and was returned. The last date for filing suit in this case is :
29.07.2008
121. A listed bank has to prepare and publish balance sheet on quarterly basis as per: SEBI
guidelines
122. There are certain instruments defined as negotiable instruments under law and certain
instruments used as negotiable instruments as per practice.Which of the following is not a
negotiable instrument as per NI Act: Dividend warrant
123. On repayment of_debt of a company, satisfaction of charge should be filed with ROC
within: 30 days
124. A Trust Deed is silent about loans by the trust. The trustee approaches for a loan. Under
these circumstances what should the bank do?: No loan can be raised
125. May I help you counter is to be provided by bank branches other than :
Small branches
126. On, other than a negotiable instrument, what is the time period for payment of stamp
duty, if the document is executed outside India: 3 months
127. Bearer uncrossed cheque can be paid to whom: To the bearer
128. Which type of loan can be given to minor:
loan cannot be sanctioned other than for necessities.
129. Maximum amount of fine under section 138 of N I Act for dishonour of cheque due to
insufficient funds is: twice the amount of cheque.
130. Committee on Procedures and Performance Audit of Public Services (CPPAPS) was
headed by: S.S. Tarapore
131. Customer service code has been mentioned in :
Banking Codes and Standards Board of India.
132. Cheque received in clearing signed by whom will not be passed out of the following:
signed by a person who has ' been declared insolvent.
133. Whether a customer can approach Ombudsman without first approaching the Bank :
Approaching the bank first is a pre-condition.
134. In case a forged note is detected in the cash tendered at bank counter, what should the
bank do?: The Note should be impounded and not returned to the tenderer.
135. If a guardian is appointed by court, minor will become major at the age of: 21 years
136. A Cheque with forged signatures is presented for payment and is paid.
Bank will be liable to: Customer (Drawer of the cheque)
137. Protection is available to the collecting banker in case of : Crossed cheques
138. A cheque was dishonoured despite sufficient balance in the account. The bank will be
liable to: Drawer of the cheque and not to the payee.
139. If time is not mentioned on a Bill of Exchange, it will be payable: on demand
140. In an account of Club with you, cheque has been been presented for payment signed by
the secretary who has died. What should the bank do?:
It will be paid if it not dated subsequent to date of death.
141. Garnishee order is applicable for:
credit balance in OD and not for cheque sent for collection.
142. Bank Guarantees are issued as per provisions of : Indian Contract Act
143. cheque truncation means: converting physical cheque to electronic image and
stopping physical flow of a paper cheque.
144. A bank cannot acquire either as owner or as pledgee shares in a company more than:-
As per Section 19 of the Banking Regulation Act 1949, no bank can hold more than 30%
of the paid up capital of a company or 30% of its own paid up capital and reserves,
whichever is less, whether it is a pledgee, absolute owner or as mortgagee
145. For formation of a company, Registrar of Companies will issue :
112
certificate of incorporation
146. Co is in liquidation, funds are at the disposal of : Liquidator
147. Guardian appointed by will of the father is called: testamentary guardian
148. Airway bill does not constitute document of title to goods:
149. Appeal against the award of the Banking Ombudsman can be made to Deputy Governor,
RBI within days of the receipt of copy of award from the Ombudsman:
30 days
150. Which crossing is a Special Crossing :
Name of Bank is written in the cheque with or without parallel lines
151. What is the relationship between bank and customer if he has left certain goods with the
bank by mistake: Bank is trustee and Customer is beneficiary
152. If a depositor dies, payment to nominee or legal heirs should be made within:
15 days of completion of formalities.
153.Who can be a nominee?: Only an individual
154. In a Flying club, the Secretary & Treasurer are authorized to sign. A Cheque is presented
for payment across the counter. In between it has been informed that Secretary has died, what
you will do? :Will be paid, if otherwise in order
155. Revival of limitation for recovery of a time barred loan is possible by:
obtaining fresh promise to pay under provisions of Indian Contract Act.
156. As per Prevention of Money laundering Act, preservation of records relating to closed
accounts upto: 5 yr from date of closure of account.
157. Banks can provide information about the customer to another Bank:
General in nature, without any responsibility
158. Board of Directors want to borrow money in excess of paid up capital and reserves of the
company: can be done through
a resolution passed by shareholders in the general meeting
159. Other than a Bill of exchange or promissory note, the document which was executed
abroad is required to be stamped on its arrival in India within: 3 months of its arrival
160. Administrator is appointed in case of: to realize assets and pay off liabilities of a person
who has died without writing a will.
161. Under Ombudsman scheme, advocate representing the customer is not entertained
162. Which of the following is not a valid cheque for payment by the bank-
l)different ink & handwriting 2) cheque with prior date
3) cheque with impossible date 4) Mutilated cheque:- Mutilated cheque
163. The liability of the drawer of bills of exchange is prime till it is not accepted by the drawee
after that prime liability becomes of Drawee.
164. Whether Pvt Ltd. Co. can be partner with Partnership Firm:Yes
165. Counterfeit note received at the counter what to be done?: Impound the currency note.
166. A cheque crossed specially to a bank is presented by the same bank to paying bank for
cash payment. What should the paying bank do? Bank can make cash payment.
167. Cross cheque can be paid at counter if presented by other bank.
168. Payments of a forged draft. Who will lodge FIR paying or collecting bank: Paying Bank.
169. Borrowing powers of board of directors are contained in: Articles of Association
170. Under Prevention of Money Laundering Act, banks are required to send cash transaction
report in respect of cash deposit or withdrawal of more than Rs 10 lakh in a month from one
account within:
15 days from the close of the month
171. If a complainant is not satisfied with the award or his complaint is rejected by the Banking
ombudsmen, he can prefer an appeal to Deputy Governor, RBI within:
30 days of the of the date of receipt of communication regarding award or rejection of
the complaint.
113
172. In case of wrongful dishonour of cheque, bank is liable to:
account holder only
173. Who can seek information under. Right to Information Act:
Any citizen of India can ask for information
174. The Garnishee Order is applicable on the account of a customer when the relationship
between banker customer is:
Debtor & Creditor.
175. A partnership firm conducting business other than the banking business has more than
20 members as partners. Whether this is allowed?:
Such association is called illegal association as per Companies Act
*********************
114
BANKING LAW - MCQs
1 Law of limitation does not affect the following

a) Bank’s Lien b) Bank’s Hypothecation
c) Simple Mortgage d) Equitable Mortgage
2 M & N are having locker in joint names with E or S condition and “M” has
reported loss of keys and at the same time “N” has come for locker operation
with keys
a) Operation should not be allowed b) Operation should be allowed with the
without the concurrence of “M”. concurrence of “M
c) Operation should be allowed jointly d) Operation should not be allowed to
the key holder
3 Issuance of bank guarantee will be accounted under
a) Contingent Liability b) Direct Liability
c) Indirect Liability d) None of the above
4 ___________________cannot be partner in partnership firm
a) HUF b) Minor
c) Private Limited Company d) None of the above
5 A possession notice has been issued under ___________ and no response
from the borrower even after 60 days – Bank can proceed for possession of
security / take possession of management / sell the security
a) Banking Regulation Act b) SARFAESI ACT
c) The Reserve Bank Act d) DRT ACT
6 Cheque returned – As per Sec 138 of NI Act, the punishment is
imprisonment
a) 14 days b) Upto 7 years
c) Upto 5 years d) Upto 2 years
7 Limitation period for loans secured by EM of property/mortgage of property
c) 7 years d) No limitation
8 HUF cannot be _______in a Partnership Firm
a) Nominee b) Partner
c) Director d) None of the above
9 Hypothecation defined under which act....
a) SARFAESI Act b) Banking Regulation Act.
c) Negotiable Instrument Act d) Indian Contract Act
10 Limitation time for execution of Decree________from the date of Decree
a) 12 Years b) 3 Years
11 Under SARFAESI ....... Option is available to Bank
a) To sell the secured assets b) to take over the management
c) to appoint a manager d) All the above
12 SARFAESI Demand notice. Mode of service

a) e mail b) Registered post
c) courier d) All of the above
115
13 Whose assistance is taken for taking physical possession under SARFAESI
Act
a) District Magistrate b) Inspector of Police
c) Branch Manger d) Recovery Agents
14 RBI is empowered to regulate Banking Companies Under
a) Banking Regulation Act b) Negotiable instruments Act
c) Reserve Bank of India Act d) None of the above
15 In LLP Account Who are not eligible for becoming partners:
A) HUF B) Minor C) body corporate
a) A&B b) B & C
c) B only d) C only
16 As per SARFAESI Act, sale notice of _______ days to be issued before sale of
c) 90 days d) 7 days
17 Garnishee Order is issued by _________ and the relationship of Bank with
customer should be Debtor
a) Court b) Income tax Dept
c) Central Govt d) Any one of the above
18 A Minor has extended Guarantee to a loan. It can be ratified b
a) Cannot be ratified b) Can be ratified by Court order
c) Can be ratified by the Minor on d) None of the above
attaining majority.
19 After receiving cheque from customer, we affix our bank’s crossing stamp.
This is done for the purpose of:
a) prevention of fraud b) requirement of NI Act
c) Cheque will become payable to our d) RBI regulation
bank only
20 Garnishee order is served on a person who has 4 accounts as under:
a) SB in personal Name;
b) TD in personal name maturing in Oct next;
c) Joint account with his wife;
d) another account in his name as trustee of a Mandir. Which can be attached?
a) a only b) b only
c) both a& b d) Both c & d
21 As per right to information act in how many days information to be given to
Customer
22 LLP minimum and max partners
a) Minimum 2 and maximum b) Minimum 2 and maximum 7
unlimited
c) Minimum 2 and maximum 20 d) Minimum 2 and maximum 50
23 Lok Adalat judgement
a) appeal at same court b) appeal at High court
c) appeal at supreme court d) No appeal
24 DD / BC for ____ and above should be signed by 2 officials
a) Rs. 1,50,000 /- b) Rs. 1,00,000 /-
116
c) Rs. 2,00,000 /- d) Rs. 5,00,000 /-
25 To recover possession of immovable property, mortgaged the period of
limitation available to mortgager is _____-
c) 3 years d) No such limit
26 There are 3 trustees- A, B, C and operation condition of the accounts severally,
then B has issued Rs.50000 in the trust a/c in favour of personal a/c of B. What
is the position of banker?
a) yes, banker can pass the b) No bank cannot pass the cheque
cheque
c) Get signature of all trustees and d) None of these
pass the cheque
27 Paripassu charge is as per share of each
a) bank b) branch
c) Account d) None of the above
28 Bank do not normally give loan to unregistered partnership firm because
a) they cannot sue third party b) They do not repay the loan
c) Because it is invalid as per law d) It is difficult to obtain permission
from sanctioning authority
29 The minimum, maximum number of Share Holders in a Private Limited
Company
a) 50 & 200 b) 50 & 100
c) 100 & 200 d) 50 & 250
30 Format of the cheque is defined in which Act
a) Nowhere it is defined (It is usage b) Banking Regulation Act
and practice)
c) Negotiable instruments Act d) Reserve bank of India Act
31 CERSAI is defined in
a) SARFAESI Act b) Banking Regulation Act
c) Negotiable instruments Act d) Reserve bank of India Act
32 Relationship in leasing of Locker to customer
a) Lesser and Lessee b) Bailor and Bailee
c) Debtor and Creditor d) Seller and Buyer
33 EM can be done at _______ place
a) Anywhere in India in places notified b) Place near to the customers
by State Govt residence
c) Place near to the Branch d) All bank branches
34 What is the status of nominee
a) he is only guardian for legal heirs b) he is only trustee for legal heirs
c) he is not related to the legal heirs d) None of the above
35 In the case of Electronic funds transfer is dishonored imprisonment of 2 years,
double amount penalty or both are defined in which Act?
a) Banking Regulation Act b) Information Technology Act
c) Negotiable instruments Act d) Reserve Bank of India Act
36 In the case of Electronic funds transfer is dishonored imprisonment of
2 years, double amount penalty or both are defined in which Act
a) NI Act b) RBI Act
c) Information Technology Act d) BR act
117
37 If Garnishee Order was mentioned with amount, action as a Banker
a) Amount mentioned in Garnishee b) Amount available in the account
Order
c) Send return unpaid d) Amount agreed by the customer
38 Which of the following is not material alteration
a) Making Crossed b) Filling the date column, which was
unfilled
c) Writing Bank name in already d) All the above
Crossed lines
39 A, B & C are partners, if deed is not written what is the liability level of
partner, then
a) Jointly and severally liable b) No liability
c) Need not be entertained d) As per the loan amount sanctioned to
individuals
40 What is the relationship between Bank and depositor in the cheque collection
sent and received
a) Purchaser, Seller b) Debtor, Creditor
c) Principle, Agent d) None of the above
41 For equitable mortgage transaction the follow is/are necessary
A. Depositing title deeds
B. to be done at four Metro only
C. Any place where State Govt. decides
D. Only in Urban places
a) A and C b) B and C
c) A, B, and D d) All the above
42 After expiry of validity period of Bank guarantee, registered notice should be
sent to the beneficiary advising that liability discharged and no claim from
beneficiary on basis of guarantee. If no reply is received from beneficiary within
______ months the entry is reversed by banks
a) 1 Month b) 2 Months
c) 3 Months d) 6 Months
43 All fraud cases are to be reported to Police / CBI within ______ days of their
detection as per guidelines
44 In terms of Section 19 (2) of the Banking Regulation Act, 1949, no banking
company shall hold shares in any company, whether as pledgee, mortgagee or
absolute owner, of an amount exceeding ___% of the paid-up share capital of
that company or ___% of its own paid-up share capital and reserves, whichever
is less.
a) 30 & 30 b) 75 & 25
c) 25 & 75 d) 50 & 50
45 Which of the following Act gives legal recognition to a Digital Signature
a) Negotiable Instruments Act b) Income Tax Act
c) Information Technology Act d) Indian Evidence Act
46 ROC - Pledge of movable: need to be registered as per
a) Company act 2013 b) Banking Regulation Act
c) Income Tax Act d) Sales Tax act
118
47 he application received under Right to Information Act (other than information on life
/exigencies) is to be replied within ___days
c) 30 days d) 48 hours
48 The highest appellate authority given in Right To Information Act is
a) Public Information officer b) The High Court
c) CPIO d) CIC (Chief Information
Commissioner)
49 The Fees payable to obtain information under RTI Act is Rs____
a) No fees b) Rs. 100 /-
c) Rs. 10 /- d) Rs. 50 /-
50 Under SARFAESI Act Possession to be taken after _____ days of issuing
Demand notice.
a) Immediately b) 30 days
51 Under SARFAESI Act Possession notice is to be published in
newspaper within _____ days of taking possession
a) Need not be published b) 15 days
52 Under SARFAESI Act action can be initiated on all eligible NPA accounts
having liability of more than _____
a) 1 Lakh and above b) Rs. 10 lakhs and above
c) Rs. 20 lakhs and above d) No prescribed limit
53 The penalty payable under Right to Information Act for not providing
information within the specified period is
a) Rs 250 /- per day max. of Rs25000 b) Rs 100/ per day max Rs 5,000/-
c) Rs 10 per day max Rs 5,000/ d) No limit
54 Under COPRA 2019, what is the limit upto which State Forum can handle
cases? a. No limit
a) Above 20 lakhs &upto 100 lakhs b) Above Rs. 1 Cr and upto Rs. 10 Cr
c) Above 10 Cr and upto Rs. 100 Cr d) Upto Rs . 20 lakhs
55 Limitation for filing complaint under COPRA from the date of cause of action is
a) Within 24 months b) Within 1 month
c) Within 36 months d) With 12 years
56 Internal Banking Ombudsman is appointed as per the recommendation of
a) Damodaran Committee b) Damodaran Committee
c) Subbarao Committee d) Guidelines of Reserve Bank
57 When a court injunction is received before settlement of a nomination Claim
a) Court injunction only has to be b) To be settled to nominees only
honoured
c) Cannot be settled d) To be settled to legal heirs
58 A depositor dying intestate means
a) He has not made any WILL b) He has made nomination only
c) He has left no property to be d) Has no legal heirs
inherited
59 Guarantee is defined under which act?
a) Indian Contract Act b) Banking Regulation Act
c) Negotiable Instruments Act d) Income Tax Act
119
60 Simple Mortgage, should be registered within
c) 3 months d) 4 months
61 RTI Act 2005 came into force on
a) 12 October 2005 b) 15 August 2005
c) 15 June 2005 d) 1 November 2005
62 The officer designated by the public authorities in all administrative units or
offices under it to provide information to the citizens requesting for information
under the Act is known as
a) Appellate Authority b) Chief Information Commissioner
(CIC)
c) Public Information Officer (PIO) d) Assistant Public Information Officer
63 What is the time limit to get the information under RTI Act 2005?
64 What is the time limit to get the information concerning the life and liberty of a
person under RTI Act
a) 48 Hours b) 24 Hours
c) 5 days d) 7 days
65 What is the fee for getting information under RTI Act
a) Rs. 20 /- b) Rs. 50 /-
c) Rs. 100 /- d) Rs. 10 /-
66 First appeal to the first appellate authority can be preferred by the applicant
within -------- days from the expiry of the prescribed time limit or from the receipt
of the decision from the PIO
67 First Appeal shall be disposed of by the first appellate authority within ------
days from the date of its receipt
68 Second appeal to the Central Information Commission/ the State Information

Commission can be preferred by the applicant within ------ days from the date
on which the decision was given or should have been made by the First
Appellate Authority
69 Appointment Committee of Central Chief Information Commissioner (CIC)
includes
a) Prime Minister b) Leader of the Opposition in the Lok
Sabha
c) One Union Cabinet Minister to be d) All the above
nominated by the Prime Minister
120
70 According to the `RTI Act, 2005`, as far as exempted organizations are
concerned, the exemption applies to
a) Certain organizations of the Central b) Certain organizations of the State
Government as listed in the 2nd Governments as may be notified by
Schedule and to the information them in the Official Gazette, but NOT
submitted by these organizations to to the information furnished by these
this Government organisations to the respective State
Governments
71 Under which section of Banking Regulation Act 1949, every banking company
has to maintain Statutory Liquidity Ratio (SLR)
a) Sec 5 (b) b) Sec 25
c) Sec 24 d) None of these
72 Protection to the Collecting Banker is available only for crossed cheques under
Section ____of the N.I.Act.1881
a) Sec 130 b) 141
c) Sec 138 d) 131
73 On which of the following, a garnishee order is not applicable?

a) Funds in the account at the time of b) Fixed deposit which is yet to be
receipt of garnishee order mature
c) RD maturing within 3 months d) Amount deposited by the customer
after receipt of the garnishee order
74 A cheque is written in different hand-writings and different inks. Will you pay
the cheque?
a) No. It will not be paid b) Yes. It will be paid as long as the
drawer’s signature is not forged
c) Drawer will have to sign where ever d) None of these
different writings are done by
different persons and wherever
different inks are used
75 Incohate Instrument means
a) Incomplete b) Absence of drawer signature
c) Crossed cheque d) All of the above
121
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS a a a a b d a b a a
Q 11 12 13 14 15 16 17 18 19 20
ANS d d a a a a a a c c
Q 21 22 23 24 25 26 27 28 29 30
ANS a a d a a a a a a a
Q 31 32 33 34 35 36 37 38 39 40
ANS a a a b c a a d a b
Q 41 42 43 44 45 46 47 48 49 50
ANS a a a a c a c d c c
Q 51 52 53 54 55 56 57 58 59 60
ANS c a a b a a a a a d
Q 61 62 63 64 65 66 67 68 69 70
ANS a c d a d a b d d c
Q 71 72 73 74 75
ANS c c d b a
Back to Index page
122
General Awareness about Banking
In which city, NPCI is setting up Smart data center to host major services under Digital India
Initiative?- Hyderabad
The unified authority to regulate all financial services in International Financial Services Centers
(IFSCs) in India- International Financial Services Centers Authority (IFSCA)
As per the amended stamp act, what is the applicable stamp duty payable on instruments
pertains to Government Securities? - NIL
The nodal agency for managing the portal www.psbloansin59minutes.com
_ SIDBI
LIBOR’ which is the most commonly used bench mark to price foreign currency borrowings will
be discontinued with effect from 31st December 2021
The name of the mobile app, launched by Reserve Bank of India, for aiding visually impaired
persons to identify the denomination of Indian Banknotes is - MANI
Full form GAAR : General Anti Avoidance Rules
Define Call money : When money is borrowed or lent for a day.
Full form of NCLAT - National Company Law Appellate Tribunal
As per RBI guidelines, bank should offer Door Step banking services to – Senior
citizens above 70 years
RBI started “Positive Pay system” from 01st January 2021.
Positive Pay System – developed by NPCI
eBAAT - RBI organized to spread e-Banking awareness
MUDRA - Micro Units Development & Refinance Agency
TDS on cash withdrawal: at 2 % on aggregate cash withdrawal exceeding INR 20 lacs to 1 Cr
TDS on cash withdrawal: at 5 % on aggregate cash withdrawal exceeding INR 1 Cr.
Banking Regulation Act 1949(BR Act 1949): Amendment – applicable to Co-operative Banks.
EASE: Enhanced Access and service Excellence- Clean and Smart banking.
“Champions” portal- Single window solution for MSMEs
CGSSD – Credit Guarantee Scheme for Subordinate Debt
ECLGS - Emergency Credit line Guarantee Scheme.
Loan sanctioned under Atmanirbhar Bharat Abhiyan covered under – NCGTC (National
Credit Guarantee Trustee Company Ltd)
The top Indian city with the best startup eco system: Bangalore
FEDAI: Foreign Exchange Dealers Association of India
LRS : Liberalized Remittance Scheme
The country which has the largest Mutual Fund market in the World? USA
State Bank of India nationalized in 1955
The Banking combining banking and consultancy services called as- Merchant Banking
ULIP : Unit Linked Insurance Plan
The Reserve Bank of India (RBI) has decided to move to the Next Generation Treasury Application
(NGTA) for managing India's foreign exchange and gold reserves in order to improve its functioning.
edX - SBI has entered in to a strategic partnership with global non-profit education
platform edX, where the bank will offer its Massive Open Online Courses (MOOCs) on the
platform.
ATMs which are owned and managed by Non-banking entities – White Lable ATMs
RBI extended Legal Entity Identifier (LEI) for larger borrowers of NBFCs, UCBs.
• Non-individual borrowers with aggregate exposure of ₹5 cr & above from banks & Financial
Institutions required to obtain LEI codes.
• Extended to Primary (Urban) Co-operative Banks (UCBs) & Non-Banking Financial Companies
(NBFCs)
123
Policy Rates as on 9.11.2023
Policy Rate Percentages
Repo Rate 6.50%

Reverse Repo Rate 3.35%
Bank Rate 6.75%
Marginal Standing Facility (MSF) 6.75%
Cash Reserve Ratio (CRR) 4.50%
Statutory liquidity Ratio ( SLR) 18%
Standing Deposit Facility (SDF) 6.25%
Financial Institutions Established in the Chairman/ Governor/ MD & CEO

Year
RBI 1935 Shri. Shaktikanta Das (Governor)
NABARD July 12, 1982 Shri Shaji K V (Chairman)
SIDBI April 2, 1990 Shri. Sivasubramanian Ramann (Chairman)
IRDAI 1999 Shri. Debasish Panda (Chairman)
EXIM Bank January 1, 1982 Harsha Bhupendra Bangari (MD)
SEBI April 12, 1992 Ms. Madhabi Puri Buch (Chairperson)
NPCI December 2008 Mr. Biswamohan Mahapatra (MD and CEO)
LIC (Life Insurance
September 1, 1956 Shri. Siddhartha Mohanty (Chairperson)
Corporation of India)
PFRDA August 23, 2003 Shri. Deepak Mohanty (Chairman)
Frequently Used Abbreviations
AD Authorised Dealer
ALM Asset Liability Management
AML Anti Money Laundering
API Application Programming Interface
ATM Automated Teller Machine
ADWMS Automated Deposit and Withdrawal Machines
ASBA Application Supported Blocked Amount
AUCA Advances Under Collection Account
BATNA Best Alternative to Negotiated Agreement
BCSBI Banking Codes & Standard Board of India
BCP Business Continuity Plan
BLBC Block Level Bankers Committee
BPL Below Poverty Line
BPLR Bank’s Prime Lending Rate
CAPIO Central Assistant Public Information Officer
CAR Capital Adequacy Ratio
CBDT Central Board of Direct Taxes
CBS Core Banking Solution
CCG Corporate Clients Group
CDC Computer Data Centre
CDIF Customer Data Input Form
CDK Cheque Deposit Kiosk
CERSAI Central Registry of Securitisation Asset Reconstruction & Security Interest
CEEP Customer Excellence Experience Programme
124
CGTMSE Credit Guarantee Fund Trust for Micro & Small Enterprises
CIBIL Credit Information Bureau of India Limited
CIA Confidentiality, Integrity, Availability
CIF Customer Information File
CFT Combating of Financing Terrorism
CLP Contactless Lending Programme
COPRA Consumer Protection Act
CPI Consumer Price Indec
CPIO Central Public Information Officer
CRAR Capital to Risk Weighted Assets Ratio
CRR Cash Reserve Ratio
CRM Customer Relationship Management
CSP Customer Service Point
CSR Corporate Social Responsibility
CTS Cheque Truncation System
CUE Credit Underwriting Engine
CVE Customer Value Enhancement
DAC Document Archival Centre
DBT Direct Benefit Transfer
DICGC Deposit Insurance and Credit Guarantee Corporation
DEAF Depositors Education & Awareness Fund
DFHI Discount and Finance House of India
DPG Deferred Payment Guarantee
DMS Document Management System
DPN Demand Promissory Note
DRI Differential Rate of Interest
DRP Disaster Recovery Plan
DRT Debt Recovery Tribunal
DSCR Debt Service Coverage Ratio
DRAT Debt Recovery Appellate Tribunal
EBLR External Benchmark Lending Rate
EBITDA Earnings Before Interest, Tax, Depreciation & Amortisation
ECGC Export Credit Guarantee Corporation
ECB External Commercial Borrowing
ECS Electronic Clearing Service
EEFC Exchange Earners’ Foreign Currency Account
EFT Electronic Funds Transfer
ELSS Equity Linked Savings Scheme
EWS Early Warning System
EMI Equated Monthly Instalment
ETB Existing To Bank
FAQ Frequently Asked Question
FATF Financial Action Task Force
FCRN(B) Foreign Currency Non-Resident (Banks)
FDI Foreign Direct Investment
FEMA Foreign Exchange Management Act
FERA Foreign Exchange Regulation Act
FI Financial Inclusion
FII Foreign Institutional Investors
125
FIPB Foreign Investment Promotion Board
FPO Follow-on Public Offer
FSM Followup, Supervision & Monitoring
FSS Financial Super Store
FIMM Financial Inclusion and Micro Markets
GCC Green Channel Counter
GDR Global Depository Receipt
GDP Gross Domestic Product
GPRS General Packet Radio Service
GRC Green Remit Card
GST Goods and Services Tax
GUI Graphical User Interfac
HTM Held To Maturity
IBA Indian Banks’ Association
ICCOMS Integrated Computerised Currency Operation & Management System
ICAI Institute of Cost Accountants of India
IDRBT Institute for Development and Research in Banking Technology
Ifams Intranet based Fixed Assets Management System
IFSC Indian Financial System Code
IIP Index of Industrial Production
IMPS Immediate Payment Service
IMG-C Indian Mortgage Guarantee Company
INFINET Indian Financial Network
IPO Initial Public Offering
IRAC Income Recognition and Asset Classification
IRDA Insurance Regulatory and Development Authority
IS Information Security
JLG Joint Liability Group
KCC Kisan Credit Card
KVIB Khadi and Village Industries Commission Board
KYE Know Your Employee
LAF Liquidity Adjustment Facility
LAN Local Area Network
LCPC Liability Central Processing Centre
LIBOR London Inter-Bank Offered Rate
LOLR Lender of Last Resort
LTV Loan to Value
MCLR Marginal Cost of funds based Lending Rate
M-Cap Market Capitalisation
MFI Micro-Finance Institution
MICR Magnetic Ink Character Recognition
MIS Management Information System
MLRO Money Laundering Reporting Office
MMID Mobile Money Identifier
MOPS Multi Option Payment System
MPBF Maximum Permissible Bank Finance
MPIN Mobile Banking Personal Identifier Number
MRTPM Market Related Transfer Pricing Mechanism
MSME Micro, Small & Medium Enterprises
126
NABARD National Bank for Agriculture and Rural Development
NACH National Automated Clearing House
NAV Net Asset Value
NBFC Non-Banking Financial Company
NBFI Non-Banking Financial Institutions
NFC Near Field Communication
NHB National Housing Bank
NDTL Net Demand and Time Liabilities
NFS Non Financial Services
NPCI National Payments Corporation of India
NEFT National Electronic Funds Transfer
NII Net Interest Income
NIM Net Interest Margin
NITI National Institution of Transforming India
NOF Net Owned Fund
NPA Non Performing Asset
NPCI National Payment Corporation of India
NPS National Pension Scheme
NRE Non-Resident External Account
NREGP National Rural Employment Guarantee Programme
NTB New To Bank
NRO Non-Resident Ordinary Account
NSDL National Securities Depository Ltd.
OCAS Online Customer Acquisition Solution
OLTAS Online Tax Accounting Systems
OMP Online Market Place
OTC Over The Counter
OSMOS Off-site Monitoring and Surveillance
OTMS Offline Transaction Monitoring System
OTP One Time Password
OTS One Time Settlement
PACE Package for Accurate, Convenient & Efficient Rating
PAN Permanent Account Number
PAPL Pre Approved Personal Loan
PAXC Pre Approved Xpress Credit
PCR Provision Coverage Ratio
PIN Personal Identification Number
PIO Person of Indian Origin
PKI Public Key Infrastructure
PFRDA Pension Fund Regulatory Development Authority
PGS Payment Gateway System
PLR Prime Lending Rate
PMLA Prevention of Money Laundering Act
PMS Portfolio Management Services
PMAY Pradhan Mantri Awas Yojana
PMMY Pradhan Mantri Mudra Yojana
PMJDY Pradhan Mantri Jan Dhan Yojana
PMSBY Pradhan Mantri Suraksha Bima Yojana
POA Power of Attorney
127
POS Point of Sale
PPO Pension Payment Order
PPP Public Private Partnership
RBI Reserve Bank of India
RBS Risk Based Supervision
R&DBG Retail & Digital Banking Group
RACPC Retail Assets Central Processing Cell
RAROC Risk Adjusted Return on Capital
RCPC Rural Central Processing Centre
RFIA Risk Focused Internal Audit
RFID Radio Frequency Identification
RIDF Rural Infrastructure Development Fund
ROC Registrar of Companies
ROCC Returns on Corporate Capital
RTI Right to Information
RTGS Real Time Gross Settlement
SAA Service Area Approach
SARFAESI Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest
SAMG Stressed Assets Management Group
SARC Stressed Assets Resolution Centre
SARS Severe Acute Respiratory Syndrome
SCB Scheduled Commercial Bank
SBAR State Bank Advance Rate
SIA State Bank Intelligent Assistant
SRAG Stressed Assets Resolution Group
SBILD State Bank Learning and Development Centre
SEBI Securities and Exchange Board of India
SFAC Small Farmers Agri-Business Consortium
SFMS Structured Financial Messaging System
SHG Self Help Group
SIB Systemically Important Bank
SIM Subscriber Identification Module
SIP Systematic Investment Plan
SFMS Structured Financial Messaging Solution
SHG Self Help Group
SIDBI Small Industrial Development Bank of India
SLBC State Level Bankers Committee
SLR Statutory Liquidity Ratio
SME Small & Medium Enterprises
SMECC Small & Medium Enterprises Central Processing Cell
SPV Special Purpose Vehicle
STEPS State Bank Electronic Payment System
STP Straight Through Processing
STR Suspicious Transaction Reporting
SWIFT Society for Worldwide Inter-bank Financial Telecommunications
SLR Statutory Liquidity Ratio
TDS Tax Deducted at Source
TIN Tax Information Network
128
TRAI Telecom Regulatory Authority of India
TReDS Trade Receivables Electronic Discount System
UIDAI Unique Identification Authority of India
UNO United Nations Organization
UPI Unified Payment Interface
UTLBC Union Territory Level Bankers' Committee
VaR Value at Risk
VAN Virtual Account Number
VIRUS Vital Information Resource Under Siege
VPA Virtual Payment Address
VPIS Valuable Paper Inventory System
VSAT Very Small Aperture Terminal
WAN Wide Area Network
WCDL Working Capital Demand Loan
WPI Wholesale Price Index
YONO You Only Need One
YTM YTM - Yield-to-Maturity
ZOPA Zone of Possible Arrangement
IMPORTANT BANKING TERMS
1 REPO RATE
When RBI provides a loan to the bank for short-term between 1 to 90 days, RBI takes
some interest from the bank which is termed as Repo Rate.
2 REVERSE REPO RATE
When bank deposit it’s excess money in RBI then RBI provides some interest to that
bank. This interest is known as Reverse Repo Rate.
3 SLR (STATUTORY LIQUIDITY RATIO)
Every bank has to maintain a certain % of their total deposits in the form of (Gold +
Cash + bonds + Securities) with themselves at the end of every business days.
4 CASH RESERVE RATIO
Every bank Maintain certain % of their total deposits with RBI in the form of Cash and
Net demand & Time Liabilities.
5 BANK RATE
Bank rate is also termed as “Discount Rate”. The rate through which RBI charges
certain % for providing money to other banks without any security for a Long period
of time for 90 Days & above
6 SCHEDULED BANK
Banks which are included in the 2nd Schedule of RBI Act 1934 are known as a
scheduled commercial bank. These banks should fulfil two conditions:
a) Paid up capital and collected funds should not be less than Rs.5 Lacs.
b) Any activity of the Bank should not adversely affect the interests of the
customers.
7 CALL MONEY
Call/Notice money is the money borrowed on demand for a very short period. When
money is lent for a day it is known as Call Money.
8 NOTICE MONEY
When the money is borrowed or lent for more than a day up to 14 days it is called
Notice Money.
129
9 GREEN BANKING
Green banking means promoting environmentally friendly practices and reducing your
carbon footprints from your banking activities. Green banking aims at improving the
operations and technology along with making the clients habits environment-friendly
in the banking business. It is like normal banking along with the consideration for
social as well as environmental factors for protecting the environment.
10 MARGINAL STANDING FACILITY
MSF is the rate through which bank can borrow funds for Short time – Overnight basis.
11 MONEY INFLATION
Money Inflation is a State in which the Value of Money is falling, and the Prices are
rising, over a period of time
12 BALLOON MORTGAGE
A mortgage is a transfer of a right to stable property for the security purpose of a loan
amount. Balloon mortgages are just for short term and it has a fixed rate mortgage.
In balloon mortgage, a monthly payment is lower because of large payment at the end
of a term. A balloon payment is for honest and qualified borrowers who have a good
credit history.
13 NEGATIVE INTEREST RATE
When there is less demand for loans the banks park their excess fund with the central
bank by which they get interest. Negative interest rate policy (NIRP) means that
central banks will deduct money from commercial banks for depositing their money
with the central bank. Commercial banks, in turn, will do the same to common people.
So, the end effect is that people will have to pay money to banks to hold their cash.
14 NON PERFORMING ASSETS
NPA is an asset of a bank which is not producing any income. Bank Usually classify
as nonperforming assets which are more than 90 days overdue
15 DIFFERENCE BETWEEN CAPITAL MARKET AND MONEY MARKET
A capital market is an organised market which provides long-term finance for
business. Whereas Money market provides short-term finance for business
16 BANCASSURANCE
Bancassurance is the concept of selling insurance products of insurance companies by
banks. The bank acts as an agent and promotes Banca (bancassurance) products under
section 6(1)(o) of the Banking Regulation Act, 1949. It was originated in Europe in the 1980s
and was successful. The bancassurance business model is a globally accepted profitable
business.
17 BANKING OMBUDSMAN
Banking Ombudsman is a senior official appointed by RBI. He handles and redresses
customer complaints against deficiency in certain banking services. The Banking
Ombudsman Scheme was introduced under Section 35 A of the Banking Regulation Act, 1949
by RBI with effect from 1995.
18 MONEY LAUNDERING
Money laundering is a process of conversion of illegal money from various sources to
appear to have originated from legitimated (Legal) source. The major sources of
illegal money are tax evasion, bribe, Smuggling etc.
19 CASA ACCOUNT
CASA stands for Current Account Savings Account. The CASA ratio displays the value of
deposits maintained in a bank in the form of current and savings account deposits in the total
deposit. A higher CASA ratio means the better operating efficiency of the bank.
20 INSOLVENCY
An organization, a family, person, or company is declared as insolvent when they are
unable to pay their debts back on time. One of the most common solutions for
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insolvency is bankruptcy.
21 BANKRUPTCY
Bankruptcy is a legal declaration of a person who is unable to pay off debts. In general,
Bankruptcy is of two types- Reorganization and Liquidation bankruptcy. Under the bankruptcy
of reorganization, debtors should restructure their bill plans to make them more easily met.
Whereas under liquidation bankruptcy, Debtors has to sell its assets to make money so that
they can pay off their creditors.
22 MIBOR
The full form of MIBOR is Mumbai Interbank Offered Rate. It is the interest rate at
which funds are borrowed by banks in marketable size, from other banks in the
Mumbai interbank market.
23 LIBOR
The full form of LIBOR is the London Interbank Offered Rate. It is the interest rate at
which funds are borrowed by banks in marketable size, from other banks in the
London interbank market. Now it is replaced by SOFR ( Secured overnight Financing
Rate)
24 VOSTRO ACCOUNT
A VOSTRO account is one which is maintained in India by a foreign bank with their
corresponding bank.
25 NOSTRO ACCOUNT
A NOSTRO account is one which is maintained by an Indian Bank in the foreign
countries
26 A BALANCE OF PAYMENTS
A list that states a country’s transactions with other countries for a certain time period
(generally 1 year). Payments into the country (receipts) are entered as positive
numbers, called credits. Payments out of the country (payments) are entered as
negative numbers called debts. A single number summarises the country’s
international transactions: the balance of payments surplus.
27 THE BALANCE OF TRADE
The difference between the country’s exports and the value of its imports are known
as the Balance of Trade. It normally incorporates trade in services unless mentioned
as the balance of merchandise trade. It includes earnings (interest, dividends, etc.)
on financial assets.
28 BILL OF EXCHANGE
A bill of exchange is a non-interest bearing written order which is used primarily in
foreign trade which binds one party to pay a fixed amount of money to another party
at a decided future date. A bill of exchange is signed by the creditor and accepted by
a debtor.
29 BITCOIN
Bitcoin is a virtual currency/ cryptocurrency and a payment system. It can be defined
as decentralized means of tracking and assigning wealth or economy, it is a software
protocol. Bitcoin uses two cryptographic keys, one public (username) and one private
(password) are generated.
30 BLOCKCHAIN TECHNOLOGY
These days the transactions in the banking sector are becoming a very tedious task
and so as to ensure that this tedious task to be removed, our banking sector is trying
to emerge towards blockchain technology. To simplify the transactions without the
help of any third party in a secure manner is really a great challenge, but to overcome
this challenge an anonymous online ledger (collection of financial accounts) which
uses the data structure to simplify it is called blockchain technology.
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31 AMORTISATION
Amortization is a periodic payment of debt like a loan or a mortgage. Amortization is
the arrangement of a lump sum cash flow into many periodic instalments over a span
of time, which is also called amortization agenda.
32 UNIFIED PAYMENT INTERFACE
This interface will integrate the entire payment systems in India.
It uses a single application programme interface with a series of Application
Programme interface (API’S). The mobile devices are the primary object for all the
payments.
33 FDI
Foreign Direct Investment is when persons/companies who/which are non-Indian, invest in
Indian companies. Thus, through FDI, the investors become the shareholders in Indian
companies and usually have stake that will give them controlling power of the company. Also,
it is important to know that there are two ‘routes’ of FDI, namely, Automatic Route (does not
require RBI or Central Government’s approval) and the Government Route (requires the
approvals for those not covered under the automatic route).
34 SMALL FINANCE BANKS
The small banks are to provide a whole suite of basic banking products such as
deposits and supply of credit, but in a limited area of operation i.e., primarily in rural
and semi-urban areas
35 CASH CREDIT
Cash Credit is a proper limit sanctioned by the bank to the borrowing
manufacturing/trading unit against the value of the raw materials, semi-finished goods
and finished goods including stores.
36 OFF-BALANCE SHEET EXPOSURE
Off-Balance sheet exposure refers to activities that are assets or liabilities of an entity
which doesn't appear on the balance sheet. Example: Letter of the undertaking, Letter
of credit, etc.
37 LETTER OF CREDIT
The letter of credit is one of the negotiable instrument. It is given by the bank, that guarantee’s
buyer’s payment to the seller shall be received on time along with the proposed amount to be
paid. In this instinct, if the buyer is unable to make the agreed payment to the seller, then the
bank will cover the full or remaining amount of purchase.
38 CREDIT RATING
‘Credit rating’ is the assessment of the creditworthiness of a borrower or a loan taker;
creditworthiness refers to the ability of a borrower to ‘service the loan’, i.e., pay back
the loan along with the interest.
39 PUBLIC CREDIT REGISTRY (PCR)
Public credit registry is a database of credit information for India that is accessible to all
stakeholders. A PCR is maintained by a public authority like the central bank or the banking
supervisor. PCR helps in credit assessment and pricing by banks. Transparent Public Credit
Registry, it helps in making better credit decisions by banks. It helps in enhancing the
efficiency of the credit market, increase financial inclusion and improve ease of doing
business. PCR will also improve access of credit to small and medium enterprises.
40 CURRENCY CHEST
Currency chests are operated by the Reserve Bank of India (RBI) so that they can
provide good quality currency notes to the public. However, RBI has appointed
commercial banks to open and monitor currency chests on behalf of RBI. The money
kept in currency chests in the commercial banks is considered to be kept in RBI.
41 MINIMUM RESERVE SYSTEM OF RBI
The current system of the Indian government to issue notes is “Minimum Reserve
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System”. Under this policy, the minimum reserves to be maintained in the form of gold
and foreign exchange should consist of rupees 200 crores.
Out this reserve, the value of gold to be maintained is rupees 115 crores. This system
was introduced in 1956 replacing the proportional reserve system.
42 RETAIL BANKING
Retail banking is a type of banking in which direct dealing with retail customers is
done. This type of banking is also popularly known as consumer banking or personal
banking. It is the visible face of banking to the general public.
43 CLEAN NOTE POLICY OF RBI
Lots of people in our country have a bad habit of writing something on the currency
note, folding currency note, also somebody staple it which spoils the Note and reduces
notes durability. So, to avoid such occurrences RBI introduced the Clean Note Policy
in 2001 in an order to increase the life of currency notes. The main objective of this
Clean Note Policy is to provide good quality currency notes and coins to the citizens
of our country.
44 PRIORITY SECTOR LENDING
A large portion of the population in India doesn't have access to funds. Therefore, RBI
has adopted Priority Sector Lending norms which relaxes the lending norms for poor
and small businesses. Priority Sector includes the following categories:
a) Agriculture
b) Micro, Small and Medium Enterprises
c) Export Credit
d) Education
e) Housing
f) Social Infrastructure
g) Renewable Energy
h) Others
Total Priority Sector lending target - 40 per cent of Adjusted Net Bank Credit or Credit
Equivalent Amount of Off Balance Sheet Exposure, whichever is higher.
45 MICRO ATMS
Micro ATMs are not any special type of ATMs. It is the advanced version of Point of
Sale (PoS) having an additional feature of Biometric scanning. It is also known as a
mini version of ATMs. These machines are connected with the GPRS (General Packet
Radio Service) mobile internet and it uses the Core Banking Solution (CBS) platform
to perform the different types of services.
46 CORE BANKING SOLUTIONS
Core Banking Solution (CBS) is the networking of branches, which enables customers
to operate their accounts, and avail banking services from any branch of the Bank on
CBS network, regardless of where he maintains his account. The customer is no
more the customer of a Branch. He becomes the Bank’s Customer.
47 SKIMMING
Skimming is a method used by fraudsters to capture customer's personal or account
information of credit card. Customer's card is swiped through the skimmer and the information
contained in the magnetic strip on the card is then read into and stored on the skimmer or an
attached computer. Skimming is a tactic used predominantly for credit-card fraud, but it is also
a tactic that is gaining in popularity among identity thieves.
48 MASALA BONDS
The bonds listed on the London Stock Exchange (LSE) is termed as Masala Bonds. These
bonds are offered and settled in US dollar to hike Indian Rupee in International market. These
bonds help to raise Indian rupees from International investors for infrastructural development
in India. International Financial Corporation (IFC) converts bond from dollars into rupees and
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uses the rupees to finance private sector investment in India.
49 EXTERNAL COMMERCIAL BORROWINGS
The money which is used for the financing of commercial activities in our country through
foreign sources is called External commercial borrowing. They can be any form namely loans,
credits or even security instruments. They are not allowed to trade through any stock
exchanges. The loan availed from foreign sources is of the minimum average maturity of 3
years.
50 DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION (DICGC)
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned
subsidiary of the Reserve Bank of India provides the insurance coverage to the
depositors. The Reserve Bank of India (RBI) said in a statement released on 4th
February 2020 said that Insurance cover on bank deposits has been increased to Rs
5 lakh from Rs 1 lakh per depositor. The banks will pay a premium of 12 paise against
10 paise per 100 rupees deposited after the increased insurance coverage.
Back to Index page
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PRACTICAL PROBLEMS – 1
PROBLEM 1:
An open cheque for Rs. 10,000/- issued by “ X” on his account was presented by “Y”, the
payee. As the balance was only Rs. 9500/-, the cheque could not be paid. “Y” suggested
that he would remit Rs.600/- in to the account to enable the Bank to pay the cheque.
Discuss:
SOULTION: If the exact amount of Rs.600/- is accepted, “X” may allege that the position
of the account was revealed to a third party, thereby violating bank’s duty of maintaining
secrecy.
PROBLEM 2:
A customer came to branch on 31.03.2009 at the closing hours of the branch. He

wanted to deposit in the central government tax account a sum of Rs. 20000/-He had
brought small denomination notes of Rs.10,Rs.20,Rs.50 and rupee coins. The SWO
told him that the time was over. Some other counter staff members suggested that
the customer may transfer the amount from his account. But he told that he did not
have any account at the branch. He also said that it would take time to go to another
bank and the bank would be closed by the time he reaches there. What will you do
as Service Manager at the branch?
SOLUTION: The bank is agent of RBI for conducting Govt Business. The customer has
come within the business time. Also, one rupee coin is unlimited legal tender. Hence, the
remittance has to be accepted. SWO’s refusal is not in order.
PROBLEM 3:
Mr. Nice payee of the draft of Rs. 50,000/- came to the bank and told that purchaser
of the draft of a MNC has issued draft in his favour which is lost in transit. He states
that purchaser is not ready to execute indemnity but ready to give letter that draft is
lost in transit. He requests you to issue duplicate . He is ready to execute indemnity
to this effect. How will you deal with the matter?
SOLUTION: A duplicate draft can be issued to the payee against his indemnity if the bank
is able to satisfy itself the draft has been delivered to him and that was the holder of the
draft at the time of its loss. Concurrence of the purchaser is also necessary. Even if the
purchaser refuses to give his consent, the legal position is that once a draft is handed over
to the payee, he becomes the owner.
PROBLEM 4:
Mr. Brown is having an OD account with our bank. Account is overdue and irregular
for many days. Even after repeated reminders he does not pay the dues. His aunt
Late Lida is having a deposit account with our bank. Mr. brown is administrator of
the estate of the deceased. Our accountant wants to sets off current account dues
with the proceeds of Late Lida’s deposit account balance. Discuss:
SOULTION: The bank can exercise right of set of subject to the following conditions:
a) Both the claim and the set off must be mutual debts.
b) The mutual debts must be due from and to the same parties
c) The dues must be under the same right.
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The dues from Mr. Ratanlal can not be set off against the balance in late
Lida’s account as the debts are not from to same parties. Mr. Ratanlal
is acting in a representative capacity as the Administrator of the estate
of the deceased. Hence, the Bank cannot exercise its right of set off.
PROBLEM 5:
Mr. Right is having a Trust account and he is a trustee. He is also having another SB
account in his personal name. One day he came to the bank, tells that he going
abroad to stay with his family. He wants to appoint his relative as a power of attorney
to both the account and he also wants to raise Rs. 2 lacs loan for the use of trust.
But Trust deed does not mention anything about raising of loan. Will you allow the
POA holder
a) To operate his personal account?
b) To operate the trust account?
c) To avail the loan ?
SOULTION: Operation of personal account: he can execute a power of attorney in favour

of his relative. If only operation of his bank account is involved, a Mandate letter would be
sufficient.
Trust account: A trustee cannot further delegate his power s to third parties. We have to
peruse the Trust deed and act as per the provisions of the trust deed in such cases.
Borrowing by the Trust: if the Trust deed is silent, the trustees cannot borrow for Trust
purposes. Hence no advance can be granted to the trust.
PROBLEM 6:
A,B,C,D are partners of a Partnership firm having a CC limit of Rs. 50 lacs. C&D have
decided to retire from the partnership firm. The come to the branch and inform you
of their decision. One Mr. E is willing to join as a partner of the partnership firm.
a) What steps have to be taken by the bank to protect its interest?
b) Can further operations be allowed in the account?
SOLUTION: The Bank should go through the partnership deed of the reconstituted firm to
ascertain the rights and responsibilities of the new partners, capital position etc. importantly,
the Bank has to be satisfied as to the viability of new firm under various areas such as
economic, technical, financial and management. The availability of security with the bank
also has to be satisfied. Thereafter fresh limit can be sanctioned to the new firm. After
execution of security documents, the outstanding in the erstwhile firm can be transferred to
the new partnership firm. The exercise should be completed within a maximum period of 2
months.
The Bank, pending completion of the above exercise can permit operations in the account
provided a continuing guarantee is executed both by the existing as well as retiring partners.
Otherwise, the operations in the account should be stopped to avoid application of Clayton’s
rule. A new account may be opened to put through the current transactions till the formalities
are completed.
PROBLEM 7:
Section 138 of NI Act- How to lodge a case against dishonour of cheques lodged for
payment of EMIs on loans?
SOULTION: If a cheuqe given in discharge of a debt or other liability is returned by the bank
either for the reason ‘insufficiency of funds” or “exceeds arrangements”, it is deemed a
criminal offence under sec 138 NI Act on the part of the drawer of the cheque. The payee
of the holder should make a demand for the payment of the aaid amount, in writing, to the
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drawer, within 30 days of receipt of information regarding the return of the cheques as
unpaid; and if the drawer fails to make payment of the amount to the payee within 15 days
of the receipt of the notice, the cause of action arises for the payee to file a case under the
section. Hence a criminal case under Section 138 of NI Act has to be filed by the Bank
against the borrower.
PROBLEM 8:
Mr. X deposits in STDR Rs.1,00,000/- on 01.01.2022. he gets a loan for Rs.75,000/- on

01.06.2022. A garnishee order was received on 01.08.2022. How will you proceed?
SOLUTION: Garnishee order attaches the debt in the hands of a creditor owed to the
judgment debtor. It means that all credit balances in the deposit accounts of the customer
whose account has been attached as at the time of receipt of the garnishee order is
attached. TDR is a present debt owed by the bank to the depositor but payable at a definite
future date. It is referred to as a debt accruing due at the time of receipt of the order. The
Bank can exercise the right of set off against debts owed by the customer at the time of
receipt of the order. The loan has been taken by the customer already and therefore it is a
debt owed by him.
The bank has to advise the court about these facts and further advise that the balance in
the TDR account, after adjustment of or dues will be remitted to the court by means of
banker’s cheque on the due dte of TDR. The customer should also be advised suitably.
PROBLEM 9:
Mr. X is having a savings bank account which has become inoperative. Now he wants
to close the account. How will you deal with the situation?
SOULTION: An account wherein no customer induced transactions have taken place in the
past 24 months will be branded as an inoperative account. When a request for closure of
such account is received, the branch should thoroughly satisfy itself about the genuiness
of the request by verifying the specimen signature of the drawer as recorded with the bank.
The reasons for the request for closure of the account would also need to be ascertained.
The request should be referred to the BM through Cheque Referred and returned Register
for his decision. This would serve as a double check before closing account. The account
can be closed only with the approval of the Branch Manager.
PROBLEM 10:
Mr. Big has availed a gold Loan of Rs. 1,00,000/- in branch “A”. Now the outstanding
if Rs. 90,000/- . Account become irregular and BM has given notice of auction in news
papers. BM of branch “B” contacted branch “A” and informed that same customer
is having an outstanding loan amount of Rs. 10,000/- in the branch “B”. he requests
you to credit the remaining amount after approaching the dues of Branch “A with
the proceeds of auction sale. As a manager of Branch “A” how would you act on his
request?
SOLUTION: As per Section 171 of Indian Contract Act, the Bank can exercise general lien
on the deposits/credit balances due to a customer against any dues owed by him to the
Bank. This is true even if the deposit account and the loan account are held at different
branches. In the present case, after adjusting the gold loan dues out of sale proceeds of
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the pledged jewellary, there will be surplus lying with the Bank. The bank can set off this
amount against his dues at the other branch. The customer and BM of branch B may be
advised accordingly.
PROBLEM 11: A customer approaches the Bank to accept deposit of cash meant to
be utilised for a payment of a cheque issued by him in favour of Income tax Dept. His
account with Bank is an NPA account and Bank Manager insists on appropriation of
the same for regularisation of his account. What advice you should give?
SOLUTION: - It is not mandatory for the Bank to accept conditional deposits of cash or
other instruments. However, if the bank accepts the same, it is duty bound to appropriate
the same as per the direction of the customer. In the instant case, if the money is accepted,
it cannot be utilised for regularization of the account.
PROBLEM 12: - Mr. Rajiv and Mr. Sanjiv (Joint borrower) raise a loan of Rs. 10 lac
which they fail to pay despite follow up by the bank. Mr. Rajiv’s SB account shows
as credit balance of 50000/- and bank wants to appropriate the same towards the NPA
joint loan of Mr. Rajiv and Mr Sanjiv. What advice you should give?
SOLUTION: - The bank has the option to use its right off set-off which fits in this case
appropriately, since the funds lying in Rajiv’s account can be appropriated as he is jointly
and severally liable for that, provided the funds in the SB account is of Mr. Rajiv’s.
PROBLEM 13:- In the above problem, instead of the SB account belonging to Mr.
Rajiv alone, it is in the name of Mr. Rajiv and his wife. Will it make any difference?
SOLUTION: - In that situation bank cannot exercise its right of set-off , since the balance
lying in the joint account is not in the same right as in the loan account.
PROBLEM 14:- In the same problem, if the SB account belonging to Mr. Rajiv is not
in the same branch, but it is in another branch of the bank in a different city. Will
your reply be different?
SOLUTION: - For the purpose of exercising right of set-off, the bank is considered one unit,
rather than the branch. Hence when the funds are available in the same right ( i.e.
same name) , the bank can exercise its right. Similarly, if the funds were not in the SB
funds account of Mr. Rajiv, rather in a term deposit maturing after 6 months, the bank shall
be required to wait till maturity for appropriation as premature payment will attract loss of
interest.
PROBLEM 15:- A branch manager granted a loan within his power for purchase of a
car to M/s ABC Pvt limited through its MD which he used in his personal capacity.
The manager was not aware and did not obtain a resolution passed by the board of
directors authorising MD to raise the loan. Subsequently the company refuses to pay
the loan stating that the MD had no power to raise loan without Board resolution.
What is the legal position of the bank?
SOLUTION: - Since the MD in this case was not carrying the authority to raise the loan for
purchase of a car for his personal use , company shall not be liable to make payment of the
loan.
PROBLEM 16:- In the above problem, if the car was for use of company and its
officials for company purpose, will be position be different.
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SOLUTION: - In that case, the company would not have been permitted to repudiate its
liability merely because a resolution was not obtained. The bonafide creditor’s claim would
succeed if no circumstances indicating to the contrary exist. However, the bank shall face
lot of difficulty to get the claim admitted.
PROBLEM 17:- Bank granted a loan to a limited company against mortgage of

company’s building as collateral security but the company did not register the
charge with ROC. Subsequently the company went into liquidation. The liquidator
disposed of the property to Mr. Ashok. What is the legal position?
SOLUTION: - Bank is in this case became unsecured creditor because its charge has not
been registered with ROC. But its charge against the company is valid and liquidator cannot
sell the same and the buyer gets the assets subject to prior charges if any.
PROBLEM 18:- In the above case, if the charge would have been filed and not
registered, will the position of the bank be different?
SOLUTION: - if the charge was filed within the stipulated period of 30 days and not
registered by the ROC and no deficiency would have been pointed out , the bank would
have been a secured creditor.
PROBLEM 19:- A term loan has been rescheduled but the consent of the guarantor
for this re-schedulement has not been obtained. In your view what risk has been
undertaken?
SOLUTION: - The consent of the guarantor shall be needed in case his guarantee is to be
kept alive, for any modification in the original terms of the loan . By undertaking modification,
in the terms of loan, the guarantor may repudiate his liability.
PROBLEM 20:- A borrower creates equitable mortgage to secure his loan. But before
the equitable mortgage was created, he had entered into an agreement with another
person for sale of the said property. What is the effect on mortgage?
SOLUTION: - In this case, if the bank has notice of the agreement to sale , its rights are
affected. But in case there is nothing to show that the bank had notice of this transaction,
the bank’s right are not affected.
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PRACTICAL PROBLEMS – 2
1 How will you deal with a cheque presented for payment if the amount in
words and figures differ?
Ans It has been provided in Sec 18 of NI Act that the amount mentioned in words will
be paid if the amount mentioned in figures is different from it.
However, in practice such cheques are returned with the remark ‘amount in words
and figures differs, drawer’s confirmation required’.
2 A cheque drawn in favour of Rajesh marked with ‘Not Negotiable crossing’
is paid to the credit of Ramesh’s Account, an endorsee. Discuss the position
of Paying Banker.
Ans As per Sec 130 of NI Act, Not negotiable crossing does not restrict the
transferability of the cheque. It can be further transferred by endorsement and
delivery. However, the transferee of the cheque does not get better title than the
transferor. Thus, the words ‘Not Negotiable’ are only a caution for the transferee to
accept such cheques from well-known parties or after being satisfied with his/her
title to the cheque.
Thus, paying banker is justified in making payment of the cheque and crediting
Ramesh’s account if otherwise in order.
3 Mr. A informs you that a cheque drawn in his favour by Mr. B, a valued
customer of your branch has been lost and requests you to stop payment of
the cheque. Mr. B’s advice regarding loss of cheque is not yet received.
Meanwhile, the cheque is presented for payment through clearing. How will
you deal with the situation?
Ans In the present case, the request to stop payment of a cheque has been received
from the payee and not from the drawer. However, the legal position is that only
drawer is entitled to stop payment of the cheque. In absence of any such instruction
from Mr. B, we may be held liable for wrongful dishonour of the cheque.
On the contrary, the cheque is reported lost by the payee i.e. true owner of the
cheque. Therefore, the title of the presenter of the cheque is not beyond doubt and
payment of the cheque ignoring the fact of loss of cheque by the payee may not
be deemed as payment in due course (Sec 10 of NI Act).
In view of all these, the cheque received for payment should be returned with the
remark, ‘Reported Lost, Confirmation awaited’. Meanwhile, efforts should be made
to obtain necessary instruction regarding payment of the cheque from the drawer,
Mr. B.
4 Credit balance in the account of Mr. P maintained with your branch is Rs.
11,000/- as at 31st Jan 2020. A cheque dated 3rd Feb 2020 for Rs 7000/- drawn
by Mr. P is presented for payment on 1st Feb 2020 and honoured. On 2nd
Feb 2020, another cheque for Rs 5000/- dated 31st Jan 2020 is presented for
payment which is returned and marked insufficient balance. Discuss.
Ans Payment of a post-dated cheque will not be considered as payment in good faith
and without negligence and therefore it will not be deemed as payment in due
course (Sec 10 of NI Act).
Bank has no authority to debit Mr. P’s account for cheque dated 3rd Feb 2020. In
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this situation, dishonor of cheque dated 31st Jan 2020 is not proper and the paying
bank is liable for damages caused to the drawer due to its wrongful dishonor.
5 A cheque for Rs 500/- is issued by the drawer leaving space before the
amount in words & figures. Payee of the cheque changed the amount to Rs
5500/- . Cheque is presented for payment and honored by you. Please justify
your action.
Ans In this case, the amount of the cheque has been changed which is a material
alteration.
Therefore, it requires drawer authentication. It also appears from the case that the
payee had been able to make such change due to negligence of the drawer in
writing the cheque and that the material alteration may not be apparently clear.
Under Sec 89 of NI act statutory protection is available to the paying banker in case
of payment of cheques which have been materially altered provided the alteration
is not apparently clear and payment is made in due course.
In the present case, both the conditions appear to be fulfilled as there is no ground
to believe that payment has not been made in due course. Therefore, paying
banker can seek protection under the said Act.
6 A cheque is drawn with words ‘Not Negotiable’ written across it. However,
neither two parallel transverse lines nor name of any bank is written. Can the
cheque be encashed across the counter?
Ans Drawing two parallel transverse lines across the cheque is essential for general
crossing of the cheque (Sec 123 of NI Act). Writing name of a bank on the cheque
is essential for special crossing of the cheque (Sec 124 of NI Act)
Effect of general crossing is that the payment of such cheque can be made to a
banker only. Similarly, effect of special crossing is that the payment of such cheque
can be made to a specified banker only. Mere writing the words ‘Not Negotiable’
on the cheque will not be considered as a crossed cheque.
In present case, therefore, the Bank may pay the cheque across the counter as the
cheque is not crossed.
7 M/s XYZ Pvt Ltd co is maintaining a current account with your branch.
Cheques are to be drawn jointly by two directors and one Accounts officer
of the company. Can we stop payment of a cheque on the strength of a letter
signed by the Accounts officer?
Ans In case of a Joint Account, firm, Joint Stock Company or a Trust, any person
authorize to sign may stop payment. It is not necessary that the countermand order
must be signed by all those persons who had signed the concerned cheque.
But if the countermand order is to be cancelled, all the persons authorised to

operate the account must sign such letter.
8 What actions you will take in the following cases?
a) Smt. Lal approaches you for payment of a sum of Rs 56000/- lying in her
husband’s account & he is reported missing for than one year.
b) Will the situation be different if amount is more than Rs 1 lakh?
Ans a) Under section 108 of the Indian Evidence Act, a person reported missing can be
141
presumed to be dead only after a lapse of 7 years by a competent court. Claim in
respect of amount held in accounts of such person can be settled only after a
certificate to that effect is issued by the court.
To alleviate the hardship of nominee/legal heirs of persons reported missing for a
minimum period of one year, it has been decided to settle Claim upto Rs 1 lakh
on production of the following documents:
i. FIR
ii. Non-traceable report issued by the police authorities.
iii. Indemnity from the claimant
Regional Manager of the respective region has been authorized to settle such
claims.In view of the above, Smt. Lal’s claim can be settled.
b) If the amount is more than Rs 1 lakh, Smt. Lal’s claim can be settled only after
a lapse of 7 years when she produces a certificate issued by a competent court
regarding presumption of her husband’s death under sec 108 of evidence Act.
9 Y reports death of her husband X maintaining a SB A/c. She claims the money
lying in X’s account (Rs. 43,000/-) as nominee. She submits an
acknowledgement issued by bank mentioning therein her name as nominee
to the account. On scrutiny, however, it is observed that nomination form
was not signed by X. Smt. Y is mother of a 15-year-old daughter only. How
will you help Y in such situation?
Ans Nomination in favour of Y by X cannot be considered valid as the Nomination form
has not been signed by the depositor. The bank should apologize for the mistake.
They should also assure Smt. Y of all cooperation in smooth settlement of a sum
of Rs 3,26,000/- held in her husband’s account. She will be advised to submit the
following documents:
c) Death Certificate of Mr. X
d) Claim format signed by the Smt. X together with declaration from one
independent person, in respect of legal heirs of deceased Mr. X, known to
the family of the deceased and acceptable to bank
e) A stamped Letter of Disclaimer to be signed by Smt. Y on behalf of her minor
daughter Ms. Rekha
f) A stamped Letter of Indemnity to be signed by Smt. Y (Claimant)
In this case, No surety is required as the claim amount is below Rs 5 lacs.

10 Mr. Rajesh Shah maintains a STDR for Rs 275000/- with your branch. He died
due to a road accident. His son, Deepak Shah approaches you to claim the
amount as nominee. Meanwhile, you receive an advocate’s notice on behalf
of the daughter of the deceased Mrs. Ameesha Jain to stop payment of the
deposit to Suman Paul. How will you handle the situation?
Ans Payment to nominee after death of the depositor constitutes a full & valid discharge
of bank’s liability. However, we should take cognizance of any order, decree,
certificate or other authority from a Court of competent jurisdiction restraining the
bank from making the payment from the account of the deceased.
In the present case, advocate of Mrs . Ameesha Jain should be advised to obtain
an injunction order from any competent court and mere serving of a legal notice
cannot be construed as an injunction from competent court.
In absence of any such order, payment to nominee after exercising due diligence
142
will provide a valid discharge to bank’s liability. Moreover, such payment to him
shall not affect the right or claim of remaining legal heirs of the deceased.
11 X, Y and Z are the partners of a firm. The firm is availing an overdraft limit of
Rs 5 lakh from your branch. You come to know from reliable source that Mr
X died on 27th Jan 2011.
Two cheques signed by Mr X are presented for payment on 28th Jan 2011.
Cheques are dated prior to the date of death of Mr X and within 6 months
from the date of issue. What actions you will take?
Ans On receipt of information of death of a partner X in the firm, operation in the
overdraft account with us should be stopped immediately in order to determine the
liability of the deceased partner. Estate of deceased partner X will only be liable for
payment of debt raised by the firm before his death. Moreover, if we fail to do so,
clayton’s rule will come into play. Any further credit in the account will reduce the
liability of the deceased partner Mr. X.
We should, therefore open a new current account in the name of reconstituted firm
to facilitate the continuance of business pending sanction of suitable credit limits.
Fresh mandate for operating the account by the surviving partners should also be
obtained.
Cheques drawn by deceased partner may be paid after obtaining confirmation of

the surviving partners and not otherwise.
12 M/s Rakesh Garments has a cash credit account with you. They have taken
insurance cover for the full value of the stock of raw materials and finished
goods. Due to congestion in the factory premises a portion of the stocks are
shifted to a separate godown. A fire accident takes place there at and the
stocks are fully destroyed. But the insurance Company rejects the claim.
Indicate the reasons.
Ans An insurance policy contains the value of insured stock and also the place where
the stocks are kept. In case the stocks are shifted to another godown, the insurance
cover will be available if the change of place is notified to the insurance company
and endorsed to this effect is made in the policy.
In this case, this has not been followed by the borrowal unit and therefore the
insurance company is justified in rejecting the claim.
13 Mr. & Mrs. S C Gupta reports that last night robbery was held at their
residence in which key of their locker at your branch was also taken away.
They are quite apprehensive that the key may be misused to operate the
locker. How will you help them?
Ans We will assure them that due care and necessary precaution is exercised at the
branch in operation of the locker to prevent any unauthorized access to it. Before
allowing the access to the locker, the signature of the hirer is obtained and verified
on the SD Locker Access Register.
Mandate for operation is also verified and access is allowed to the hirer(s) as per
mandate only.
They will also be advised to report the loss of key in writing signed jointly by them.
Date for breaking open the locker will be fixed with the manufacturer of the locker
143
as per Mr. & Mrs. Gupta’s convenience. A service charge of Rs 500/- in addition to
actual expenditure incurred for breaking open the locker and changing the lock by
manufacturers of lockers shall be payable by them. Locker will be break open in
their presence.
14 Mr. & Mrs. Gupta are having a locker to be operated by either of them or
survivor. Mr. Gupta requests you in writing that Mrs. Sharma should not be
permitted to operate the locker. Discuss the situation.
Ans If the locker is in joint names, access to the hirers is allowed only after verification
of mandate for operation recorded with the bank.
In the present case, mandate is available for operation of the locker by either of
them. However, the mandate can be revoked by any one of the joint hirers. Here,
Mr. Gupta (one of the hirers) has given the notice to revoke the earlier mandate of
operation (E or S). In such situation, only joint operation of the locker can be
permitted.
Bank should also make effort to persuade them to surrender this locker and get
separate lockers allotted in their sole name to prevent any further complication or
litigation.
15 The Inspecting official of your branch has observed that an advance account
has been straightway classified as doubtful asset. He wants to know the
reasons. How will you explain?
Ans Normally an advance account goes through various stages of asset classification
viz. Substandard, Doubtful Asset and Loss Asset.
However, an advance account can be straightway classified as doubtful asset

when the realisable value of the security is less than 50 per cent of the value
assessed by the bank at the time of last inspection.
Moreover, If the realisable value of the security, as assessed by the bank/approved

Valuers is less than 10 per cent of the outstanding in the borrowal accounts, the
asset should be straightaway classified as loss asset.
Back to Index page
144
MCQ - LIABILITY PRODUCTS
Which of the following is not permitted to open SB a/c?
1 a) Government bodies with budgetary b) Proprietary / Partnership firm
allocations
c) Private Ltd Company d) All the above
Savings Bank Account will be opened for______
a) Societies registered under Societies b) PACS, Khadi Village Industries
2 registration act 1860
c) SHGs d) All of the above
A major individual can open_____
3 a) BSBDA b) Pehla Kadam
c) Pehli Udaan d) None of these
After filling the data in online SB Account opening, customer needs to come to the
4 bank for opening the account with in
c) 30 days d) At his convenience
SB Account will be opened to HUF, provided
5 a) Karta is not an elder person of the b) HUF is engaged in Business
family
c) HUF not doing any business d) None of these
If a SB account is closed within 14 days from the date of opening, the closure charge
6 is
a) Nil b) Rs. 500 /- + GST
c) Rs. 1,000 /= + GST d) AOF
7 In SB account how many times free cash deposit allowed
a) No restriction b) 3
c) 5 d) 4
8 For opening SB Account by resident of J &K, Assam and Meghalaya that customer
needs to submit
a) Voter Id Card b) PAN
c) Any OVD containing address and d) All of these
identity with Photograph
9 The positive confirmation of the address of the customer will be made by bank
By
a) Acknowledgement of Cheque book b) By visit or telephonic
conversation
c) a) and b) d) By personal visit only
10 What is the minimum amount of deposit and Minimum withdrawal in SB account
a) No such restriction b) Rs.10 /- and Rs. 50 /-
c) Rs. 50 /- and Rs. 100 /- d) Rs. 1 /- and Rs. 10 /-
11 What is the ROI in SB accounts with balances upto Rs. 10.00 Cr? And above Rs
10.00 Crore w.e.f 14.10.2022?
a) 3.25 % & 3.00% b) 3.00 % & 5.00%
c) 2.70 % & 3.00% d) 2.70% & 2.70%
12 Maximum Deposit can be made in Minor SB Account is
a) Rs 20.00 lakhs with Guardian b) Rs 10.00 lakhs in single name
c) Both a & b are correct d) None of these
145
13 Which of the following of the illiterate person is/ are to be taken while opening SB
Account?
a) LTI of the illiterate b) Photo of the Illiterate
c) Two identification marks d) All of these
14 Who is to ascertain the correct amount of deposit or withdrawal by illiterate
customer?
a) SWO b) Passing Official
c) Branch Manager d) A or b
15 Who appoints guardians to Mentally Retarded people to operate their accounts?
a) District Court b) District Collector
c) District Medical Officer d) Both a and b
16 Who is to fill the pay in slip if an illiterate person come for deposit of the amount?
a) Another Customer b) Service Manager
c) SWO d) Invariably by a supervising official
17 Which one of the following is not correct in case of SB Account of an illiterate?
a) Authorised official signs on deposit b) Passing official affixes signature on the
form having confirmed the amount withdrawal form confirming the amount of
withdrawal
c) Independent witness required d) Accounts of illiterate persons cannot be
while closing the account transferred to other branch
18 Which of the following is not correct in case of SB account opened to visually
impaired person?
a) LTI to be obtained even from b) Self-Operated cheque book may be given
literate person if he/ she doesn’t to Visually Impaired if he/ she signs
sign uniformly uniformly.
c) ATM Card can be issued. d) All are correct
19 Savings Bank account will be opened to companies if___
a) Licensed U/s 25 of Companies Act b) Licensed U/s 8 of Companies Act 2013
1956
c) If the words Ltd or Pvt Ltd is not d) All of the above
there in its name
20 SB Account holder of Leprosy will affix the following on withdrawal or cheque
for withdrawing the amount from the account___
a) Thumb Impression b) Toe impression
c) A mark on the cheque or d) Any one of a, b or c
withdrawal form, subject to
completion of laid down formalities
if a and b are not possible
21 If one of the depositors is blind or visually impaired SB Account will be opened as
under___
a) Singly with the blind or visually b) Joint account to be operated by E or S
impaired person
c) Joint account to be operated by d) B or C
Any one or Survivor
22 As per the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999, a person with disability means, a
person suffering from___
146
a) Cerebral Palsy b) Autism
c) Mental retardation d) Anyone or two or more disabilities.
23 Inoperative Account means___
a) If there is no debit or credit b) If there is no debit or credit transactions
transactions for over a period of induced by customer or third party for over
two years a period of two years
c) If there is no debit transactions for d) None of these
the last two years
24 For the purpose of treating a SB account as inoperative, customer induced
transactions are
a) Debit or Credit induced by the b) Credit of Interest of Fixed
customer Deposit or Dividend on shares on mandate
given by customer
c) Periodical Interest credit of SB d) Both A and B are correct
account by bank
25 An account after becoming inoperative,
a) ATM will be inactivated b) INB will be inactivated
c) POS Transactions will be d) All of these
inactivated
26 In inoperative accounts, the following shall not be entitled
a) Immediate credit of cheques b) Immediate credit of cheques drawn on
drawn on other branches bank branches
c) Immediate credit of foreign d) All of these
currency cheques.
27 Which of the operational risks the bank runs in case of Inoperative accounts?
a) Vulnerability of such accounts to b) Loss of deposit by transfer to DEAF
fraud
c) Threat to customer confidence d) All of these
28 In inoperative accounts the following transaction(s) will not be done
a) Student Scholarships b) Direct Benefit Transfer
c) ATM Transactions d) Electronic Benefit Transfer under
Government Schemes
29 The following is/ are to be meticulously followed while activating the inoperative
account
a) Genuineness of the transaction b) Verification of the signature of the
depositor
c) Identity of the customer d) All of these
30 Report of Customer wise list of inoperative accounts will be generated by CDC on
a) 31st of March b) 30th September

c) 30th June & 31st December d) 31st October
31 Intimation for account become inoperative, depd0000.txt will be generated on
a) Last Friday of every month b) Last day of the Month
c) Last day of the calendar quarter d) 15th of every month.
32 An account will be identified as Unclaimed Deposit Account, when there are no
customer or third party induced transactions for over a period of
c) 1 year d) 10 years
147
33 The amount in an unclaimed deposit will be credited to DEAF (Depositor’s Education
and Awareness Fund), which will be maintained by
a) RBI b) GOI
c) NABARD d) None of these
34 The particulars invariably to be printed on the SB Pass Book are
a) Contact Particulars of the Branch, b) MICR, IFSC Code and
Contact Centre, Grievance Nomination Number
Redressal Officer.
c) Both a and b d) Only b
35 In case of transfer of SB Account form one branch to other, the following is not
correct
a) Request for transfer will be b) Any one the depositors may submit
submitted at either transferor or request for transfer in case of E or S or
transferee branch. Any one or Survivor accounts.
c) KYC to be submitted at any of d) Home branch to be changed by transferor
transferee or transferor branch in branch for effecting transfer of the account.
case of incomplete KYC.
36 At non home branches
a) SB Customers themselves b) SB Customers themselves withdraw
withdraw up to Rs 10,00,000/-( up to Rs 10,00,000/- (using both cheque &
using Cheque ) withdrawal form)
c) SB Customers themselves d) Both a and b are correct
withdraw without any ceiling
37 The photograph of the illiterate person on Term Deposit will be renewed after
38 In minor Savings Bank accounts of Pehla Kadam and Pehli Udaan, the following is/
are not correct.
a) Enquiry Rights will be given in b) Limited transaction rights up to the limit of
RINB for both variants Rs 5000/- will be given to both variants
c) Child photo embossed ATM Card d) Personalized Cheque Book will be issued
will be given in both variants to minor in both variants
39 The following can open a Pehli Udan account
a) Any minor above 10 years b) Minor above 10 years and who can sign
uniformly
c) Minor below 10 years d) Minor of any age
40 Photo embossed ATM card will be given to
a) Pehla Kadam accounts b) Pehli Udaan
c) All SB Accounts d) To A & B only.
41 Pehli Udaan will be opened to
a) All minors above 15 Years of Age b) 10-year-old minor jointly with Natural
Guardian only
c) 10-year-old minor jointly with d) Singly, by minor of above 10 years & who
Guardian can sign uniformly
42 Which of the following is not correct, regarding Monthly Average Balance (MAB)
a) For Metro & Urban – Rs. 3,000 /- b) Semi Urban – Rs. 2,000 /-
c) Rural – Rs. 1,000 /- d) No MAB is stipulated irrespective of center
as per the recent instruction
148
43 Minor can open SB Account
a) Singly if above 10Y age and signs b) Jointly with Legal Guardian
uniformly
c) Jointly with Natural Guardian d) All of these
44 Report name where the list of minors who attained majority is
a) Depd0622.txt b) Deposit Shadow file
c) Depdmaj.txt d) None of these
45 Which of the following is not correct regarding to BSBDA Small Account
a) Maximum credit summation during b) Maximum balance at any point of time
FY is Rs. 2,00,000/- should not exceed Rs 50,000/-
c) Simplified KYC d) ATM Card will be issued
46 What is the number of maximum credit transactions allowed in BSBD A/c
a) 4 b) 5
c) No restriction d) 3
47 Which of the following is/ are to be taken from HUF while opening the SB account
a) PAN and KYC of the Karta only b) JHF Letter on COS-38
c) Both a & b d) PAN and KYC from all adult coparceners
48 In BSBD Account, which is not permitted
a) Deposits more than 4 in a month b) KYC Compliancy
c) Withdrawals up to 4 in a month d) None of the above
including ATM Transactions free of
cost
49 If a customer has any other existing Savings Bank deposit account in our Bank,
he/she will be required to close it within ______ from the date of opening a
Basic Savings Bank Deposit (BSBD)Account.
a) Immediately b) 30 days
c) 60 days d) Need not be closed
50 In BSBDA-Small account, the following is not permitted
a) Withdrawal and transfers b) The balance at any point of time does not
beyond Rs 10,000/- in a month. exceed Rs 50,000/-
c) The aggregate credit in a year d) Account will be opened on
does not exceed Rs 1.00 lakh submission of simplified KYC
51 BSBDA-Small Account is initially valid for a period of
a) 6 months b) 24 months
c) 12 months d) None of the above
52 No transactions will be permitted in BSBDA-Small account if the KYC documents
are not submitted with in
c) 6 months d) None of these
53 In Savings Plus Account, MOD will be issued for are
a) Rs.10000/- & in multiples of b) Rs.10000/- & in multiples of Rs. 5000/-
Rs.1000/-
c) Rs.10000/- & in multiples of Rs. d) None of these
100/-
54 While activation of inoperative account to operative____(choose the wrong option)
a) Cash wdl transaction should happen b) KYC should be obtained and updated first
c) Customer presence is must. d) Customer presence is not required.
149
55 Sundry Loan against the Annuity Deposit will be given
a) 75% of remaining balance amount b) Annuity to be credited to Sundry Loan
c) Both are correct d) None of these
56 The minimum deposit to be made in MODS is
a) Rs 1,00,000/- b) Rs 10,000/-
c) Rs 1,000/- d) None of these
57 Maximum cash withdrawal permitted in Capital Gain SB account is
a) Rs 25,000 /- per instance b) Rs 49,999 /- per instance
c) Rs 50,0000 /- per instance d) No cash withdrawal is permitted
58 Which of the following is not correct in case of SBI Tax Saving Scheme 2006
a) Max Deposit in a year b) Minimum Deposit Rs 1000/-
Rs.1,50,000/-
c) No premature payment before 5 d) HUF, NRI and PIO can open the account.
years
59 The additional incentive of 1% to staff in interest rate will be given if the account
opened by staff jointly with
a) Spouse, Son, Unmarried Daughter, b) Daughter-in-law, grandson and
Unmarried Sister, parents. grand daughter
c) Monies belong to staff member d) All of these.
60 The additional incentive of 1% to staff in interest rate is also available to HUF
Account if
a) The staff member is Karta of a b) If staff member is an adult co-
HUF parcener
c) Both A and B d) None of these are correct
61 The following will be issued to customer if opted for Savings Bank account to be
opened with Non-Personalized Welcome kit
a) ATM Card (If customer opts) b) Cheque book (If customer opts)
c) Welcome Letter d) All of these.
62 AAI (Additional Air Accident Insurance) coverage under PAI for CSP Gold variant
a) Rs 50.00 lakhs b) Rs 20.00 lakhs
c) Rs 30.00 lakhs d) Rs 5.00 lakhs
63 Which one of the following is not correct?
a) There is no silver variant under b) For eligible for CSP lite, the net salary
DSP, PMSP AND ICGSP should be between Rs. 5000 /- and Rs.
9,999 /-
c) For Air Accident Claim, the ticket d) Concession in locker charges for
should be purchased by using our Platinum and Diamond category is 25 %
debit card / INB
64 Coverage in PAI for marriage of girl child of 18-25 age for all variants in CSP is
c) 10% of PAI upto Rs 5.00 lakhs d) None of these
65 Coverage in PAI for Repatriation of mortal remains for all variants in CSP is
c) Rs 20,000/- d) None of these
66 Which of the following is correct regarding CSP tie up?
a) Metro center – Min 25 employees or b) Other center - Min 20 employees or salary
salary credit of Rs. 20 lacs credit of Rs. 15 lacs
150
c) Any Corporate is eligible d) The tie up should be uploaded in CTU site
through RBO / KAM
67 CSP lite Silver customers enjoy the following features
a) No MAB, PAI coverage of Rs. b) Only No MAB
1,00,000 /-
c) No MAB, PAI coverage Rs. d) No MAB, PAI coverage Rs. 1,00,000 /-,
1,00,000 /-, unlimited ATM unlimited ATM Transactions, No ATM
Transactions maintenance charges
68 What is the Permanent Total Disability Cover available for DSP, CAPSP & ICGSP?
c) Rs 50.00 lakhs d) Rs.25.00 lakhs
69 Coverage in PAI for Plastic Surgery for all variants in SUSP(Startup salary package
) is
c) 10% of PAI up to Rs 2.00 lakhs d) Rs 1,500/-
70 AAI (Additional Air Accident Insurance) coverage under PAI for SUSP Platinum
variant is
c) Nil d) Rs.30 lakhs
71 Which one of the following is not correct in SUSP Platinum Variant?
a) International Platinum Debit card b) Max debit in ATM is Rs 1.00 lac per day
will be issued
c) Rs 2.00 lakhs limit for POS d) All are correct
72 Overdraft will be given to CSP Variants
a) 2 month’s salary up to max of Rs b) 2 month’s salary up to max of Rs
1.50 lakhs to Diamond 2.00 lakhs to Platinum
c) Both A and B are correct d) None of these
73 Coverage in PAI for death and Coma after accident for all variants in SUSP is
a) Rs 2.00 lakhs b) 10% of PAI up to Rs 2.00 lakhs
c) Rs 5.00 lakhs d) Rs 1,500/-
74 Which of the following is not correct regarding Saving Bank Plus account
a) Auto Sweep facility is available b) TDR / STDR can be broken on FIFO basis
c) Minimum TDR / STDR is Rs. 10,000 d) Minimum Threshold limit Rs. 35,000 /-.
/- and in multiples of Rs. 1,000 /-. Minimum resultant Balance: Rs. 25,000 /-
Period of deposit 1 to 5 years
75 Which one of the following is not a Low-Risk category account
a) Pehla Kadam b) Pehli Udaan
c) Minor account opened with d) NRE SB Account
guardian
76 Which of the following is not correct in case of PMSBY
a) Life cover for Rs 2.00 lakhs b) Cover available for 18-70Y age
c) Cover available from National d) cover for Rs 2.00 lakhs
Insurance Co.
77 Life cover available in PMJDY account
a) Rs. 2,00,000 /- b) Rs. 1,00,000 /-
c) Rs. 5,00,000 /- d) Either Rs. 1,00,000 /- or Rs. 2,00,000 /-
depends on age
151
78 In case of APY, which is not correct
a) It is meant for unorganized sector b) Aadhar is mandatory
retirees
c) Scheme administered by PFRDA d) It is meant for unorganized 18-40 age.
79 Maximum pension available in APY is
a) Rs 1,000/- per month b) Rs 2,000/- per month
c) Rs 10,000/- per month d) Rs 5,000/- per month
80 Which account can be linked to CLTD?
a) SB b) CA
c) SB or CA d) TDR
81 Maximum Deposit permitted in SBI Flexi Deposit is
a) No maximum limit b) Rs 50,000/- in a year
c) Rs 1,50,000/- in a year d) Rs 500/- per month
82 In an Annuity deposit the following is not correct
a) Minimum deposit Rs 25,000/- b) Minimum Annuity Rs 1000/- PM
c) Premature Payment in case of d) Maximum Deposit Rs 1,50,000/- per
death of the depositor annum.
83 What is the minimum deposit amount and maximum period for non – callable Term
deposit?
a) Rs 1 Cr & 3 years b) Rs. 2 Cr & 3 years
c) Rs. 2 Cr & 3 years d) Rs. 2 Cr & 5 years
84 The following is not correct in case of Term Deposits

a) Issued for a period of 7 days or more b) Minimum Deposit of Rs 1,000/-
c) No Maximum period. d) Concession in Interest Rates
offered to Senior Citizens.
85 Bulk Deposit means if
a) Fixed Deposit of more than Rs 10 b) Fixed Deposit of Rs 2 Crore and above
Crore
c) Fixed Deposit of Rs 50 Lakhs d) None of these
and above
86 Term Deposit for more than 120 months (10-years) will be issued in case
a) In the name of the newly born girl b) In case of any newly born child.
child under the Special Scheme of
the Government
c) Both are correct d) Both are wrong
87 In case of Term deposit issued in joint names under Either or Survivor operating
instructions, the following is not correct
a) Payment will be made to any one at b) Both signatures to be obtained if paid
maturity. before maturity.
c) If loan is taken against the d) Operating style can be modified
security of this, both are to sign the at the consent of any one of them.
documents.
88 In case of a Term deposit issued in the joint names, the following is not correct
152
a) Any one or all the depositor’s b) One depositor must continue till the
name(s) will be deleted, and new maturity of the deposit.
names are added during the
tenure of the deposit.
c) Splitting of joint deposits will be d) The deceased depositor’s name will be
made at the request of all substituted with the legal heirs of the
depositors provided the term and deceased.
amount doesn’t change.
89 In case of Term Deposit issued in the name of the minor, the following is not correct
a) Term Deposit will be issued in the b) Term deposit will be issued up to an

sole name if the depositor attained amount of Rs 2,00,000/- if issued in the
the age of ten and signs name of the minor alone.
uniformly.
c) Term deposit will be issued up to an d) No undertaking is to be obtained from the
amount of Rs.10,00,000/- if issued guardian if the Term Deposit issued for an
jointly with guardian. amount of more than Rs 2.00 lakhs
90 In case of nomination on Term Deposit, the following is correct

a) Nomination to be given at the time b) Nomination is to be given at every time,
of issuance of Term Deposit and the renewal of the of Term Deposit
need not be given at every renewal
c) Nominee should not be minor d) None of these
91 Penalty for non – Deposit of monthly instalment in RD account is

a) If term is 5 years or less – Rs. 1.50 b) If term is above 5 years – Rs. 2.00 per Rs.
per Rs. 100 per month 100 per month
c) At any cost penalty should not d) All are correct
exceed the interest paid amount
92 Tenor of e-RD holiday saving account ( Cox & Kings) is

c) 36 months d) 12/24/36 months
93 Periodic Updation of KYC for existing accounts to be done for low/ medium / high
risk categories as under
a) 10/8/2 years respectively b) 10/5/2 years respectively
c) 5/3/2 years respectively. d) None of these
94 If the KYC Compliance is not done in the existing accounts, debit transactions in
the account will be frozen (Partial Freezing) after
a) 1st Notice is to be issued with a b) A reminder will be sent to the customer by
response time of 1 months to the Registered post giving a further period of
account holder one month
c) Partial freeze to be imposed after d) Bank has no right to freeze transactions.
three months from date of first notice,
by allowing all credits but disallowing
all debits
153
95 If the KYC Compliance is not done in the existing accounts, the account will be
blocked after
a) 1st Notice is to be issued with a b) A reminder will be sent to the customer by
response time of 1 months to the Registered post giving a further period of
account holder one month
c) Partial freeze to be imposed after d) Bank has no right to freeze transactions.
three months from date of first
notice, by allowing all credits but
disallowing all debits
96 How many notices to be sent to customers before partial freeze
a) 2 notices b) 3 notices
c) 1 notice d) 4 notices
97 Fill up the account opening form on the digital board at the bank in a jiffy is called
_____ (walk in with your KYC, walk out with account number)
a) SBI Smart b) SBI Scribe
c) SBI Pride d) SBI Easy
98 Swayam is used for
a) Passbook printing b) Cheque depositing
c) Online enquiry d) Registering complaint
99 SBI mFAST is
a) Cash Management Service b) SBI General Insurance app
c) App to generate quick token in d) None of these
CEEP
100 SBI Mingle is a _______
a) Missed Call Banking b) Cash Management Product App
c) Social Banking App d) Multi Facet INB Utility
101 What is the maximum OD account eligible for Power POS current account
a) Rs. 25,000 /- b) Rs. 5 lacs
c) 25 % of last 6 months transaction d) No overdraft permitted
without any ceiling
102 Interest payable to current account in case of
a) Proprietor account when the b) When trust is opted to open current
proprietor deceased account
c) When HUF is opted to open current d) All are correct
account
103 Current account is a form of?
A Time Deposit B Demand Deposit
C Term Deposit D Fixed Deposit
104 Which one of the following official cannot authorize a current account opening?
A Branch Manager B Divisional Manager
C Authorised official D None of the above
105 A proprietary firm wants to open current account with our bank. They do not have
account with any other bank? Which of the following document is not required to
open the account?
A Proprietor’s ID Proof B NOC from other banks
C Undertaking stating that they do not D Firm’s Address proof
have any credit facilities with other
bank.
154
106 A businessman intends to open a CA, but the signature is in such a manner that it
can be forged easily. What are the available remedies for the branch?
A The branch can open account in a B The branch can open account after
routine manner. obtaining undertaking from the applicant,
that he will draw cheque in the presence
of an official in the branch.
C The branch can refuse to open D B&C
the account
107 Who can open a current account?

A Individuals B Firms
C HUF D All of these
108 Which one of the following can open a current account?
A Public limited company B Private limited company
C Trusts D All of these
109 An account is treated as inoperative if there are no customer or third party
induced transactions in the last?
A 1 year B 2 years
C 5 years D 10 years
110 An account is treated as UNCLAIMED Deposit, if there are no customer or third party
induced transactions in the last?
A 2 years B 5 years
C 10 years D 15 years
111 Nomination facility is available only to
A Individual accounts B Proprietary concerns
C Limited companies D A&B
112 Nomination in case of current account can be made in favor of how many persons?
A There is no such restriction B Only one person
C Only two persons D Facility not available for CA
113 Which one of the following is not a form of legal representation?
A Succession Certificate B Letter of Administration
C Family tree D Probate
114 A succession certificate may be granted by a
A District judge B High court
C Both A & B D None of the above
115 A succession certificate is not applicable to
A Articles in safe deposit B Ornaments pledged
C Both A & B D None of the above
116 A succession certificate is valid
A In the district where it is issued B In the State where it is issued
C All over the country D None of the above
117 To open a current account in the name of a minor, approval is required from?
A No approval is required B Module Head
C Controlling authority D Circle Head
118 A partnership letter should be obtained from the partnership firm at the time of
account opening, in the format of
A COS 35 B COS 37
155
C COS 36 D COS 38
119 A Joint Hindu Family letter should be obtained for HUF account at the time of
account opening, in the format of
A COS 35 B COS 36
C COS 37 D COS 38
120 Bank has to be notified by the HUF every time
A On birth of a new coparcener B On death of a coparcener
C Minor on becoming Major D All the above
121 Which of the following documents to be obtained at the time of account opening for a
Company?
A Memorandum and articles of B Certificate of incorporation
association
C A board resolution to open the account D
All the above
122 Which of the following documents to be obtained at the time of account opening for
a society?
A Resolution of managing body B Certificate of registration
C Copy of Bye-laws D All the above
a HUF?
A Declaration from Karta B Proof of identification of Karta
C PAN copy of HUF D All the above
a Trust?
A Copy of resolution B Trust deed
C Registration certificate D All the above
a partnership firm?
A Copy of partnership deed B Partnership letter
C PAN card of the firm D All the above
a proprietary concern?
A Certificate or license B Form 60 / Pan of the proprietor
C Address proof D All the above
127 Individual accounts where credit or debit summations of Rs 2.00 crores or more per
annum are categorized under
A Low risk B Medium risk
C High risk D Either A or C
128 Non-Individual accounts where credit or debit summations of Rs. 10.00 crores or
more per annum are categorized under
A Low risk B Medium risk
C High risk D Either B or C
129 Individual accounts where credit or debit summations of Rs.50.00 lacs to below Rs
2.00 crores per annum are categorized under
A High risk B Medium risk
C Low risk D Either Medium or low
130 Non-Individual accounts where credit or debit summations of Rs 2.00 crores to
below Rs.10.00 crores per annum are categorized under
A High risk B Medium risk
C Low risk D Either high or medium
156
131 Which of the following is not a low risk account?
A Salaried account B BSBDA Small account
C NGO account promoted by UN D Trust Account
132 What is the MAB to be maintained in a Regular current account?
A Rs.5000/- B Rs.10000/-
C Rs.7500/- D Rs.2500/-
133 For a regular current account penalty for not maintaining minimum balance?
A Rs. 500 + GST per month B Rs. 500+ GST per quarter
C Rs. 1000 + GST per quarter D Rs. 1000 + GST per month
134 Maximum number of free cheques allowed for a Diamond current account?
A 1000 per month B 750 per month
C 500 per annum D 700 per month
135 What is the MAB to be maintained in a Gold current account?
A Rs.10,000 /- B Rs.50,000/-
C Rs.1,00,000/- D Rs.5,00,000/-
136 What is the maximum per day cash deposit at non home branch for Gold,
Diamond & Platinum Current accounts?
A Rs.2,00,000 /- B Rs.1,00,000/-
C Rs. 50,000 /- D Rs. 5,00,000 /-
137 What is the maximum per day cash withdrawal (for self only) at non home
branch in case of PER Seg current accounts through cheque?
A Rs. 49,999 /- Rs. 50,000 /-
C Rs. 10,00,000 /- No cash withdrawal permitted
138 What is the following is incorrect regarding free monthly cash deposit per month in
current account?
A Regular – Rs. 5 lacs B Gold – Rs. 25 lacs
C Diamond – Rs. 100 lacs D Platinum – unlimited free
139 NOC for current account for our borrowers (for units whose proposals are
sanctioned by CLCC) to be authorised by an official not below the rank of __ ?
A Chief General Manager B General Manager
C Deputy General Manager D Assistant General Manager
140 NOC for current account for our borrowers (for units whose proposals are
sanctioned by RCC) to be authorised by an official not below the rank of ____?
A Chief General Manager B General Manager
C Deputy General Manager D Sanctioning Authority
141 Bank deposits up to Rs 1 lakh is insured by ______ and collects a flat premium of
___ paise per Rs. 100 /- deposit.
A DICGC & 12 paise B DICGC & 1 paise
C RBI & 1 paise D GOI & 10 paise
142 In small accounts, alerts are given to customer when the balance exceeds Rs. _____
and credit summation exceeds Rs. ____-
A Rs. 48,000 /- & Rs. 98,000 /- B Rs. 45,000 /- & Rs. 90,000 /-
C Rs. 47,500 /- & Rs. 97,500 /- D Rs. 40,000 /- & Rs. 80,000 /-
143 Politically exposed person account opening to be approved by officer nor below the
rank of _____?
A AGM B Scale IV
C Br. Mgr irrespective of any scale D DGM
157
144 Controlling ownership interest means ownership or stake in the business of ____%
in case of companies and __ % in case of Partnership/club/associations
A 10 % & 15 % B 20 % and 10 &
C 15 % and 25 % D 25 % and 20 %
145 Daily ATM cash limit & POS limit for State Bank Pride card
A Rs. 1,00,000 /- & Rs. 2,00,000 /- B Rs. 50,000 /- & Rs. 1,00,000/-
C Rs. 2,00,000 /- & Rs. 4,00,000 /- D Rs. 40,000 /- & Rs. 1,00,000 /-
146 Name of the account which facilitates sweep and reverse sweep of balance above a
threshold, to term deposit?
A Surabhi B Sahaj
C Jyothi D Sweepbhi
147 Minimum balance of deposit that has to be maintained in CLTD AC?
A Rs. 25000/- B Rs. 50000/-
C Rs. 75000/- D Rs. 100000/-
148 Minimum subsequent deposit amount for current account in CLTD?
A Rs.5000/- B Rs.10000/-
C Rs. 20000/- D Rs.25000/-
149 The current account which facilitates the collection of funds from any branch?
A Power Jyoti B Power Light
C Power collect D Power Pack
150 Minimum deposit to be maintained in a Power Jyoti account?
A Rs.50000/- QAB B Rs.50000/- MAB
C Rs. 25000/- MAB D Rs.25000/- QAB
151 The product which allows the customer to pre upload MIS data of own?
A Power Jyoti B Power Light
C Power Collect D Power Jyoti (PUL)
152 Unique feature of Power Jyoti (PUL) account?
A It allows the customer to upload MIS B It helps customer for reconciliation
data
C Both the above D Neither
153 Floating Rate Bulk Term Deposit will allow depositor to take advantage of changes in _____
A Bank Rate B Reverse Repo Rate
C Repo Rate D State Bank Advance Rate
154 Minors are __________ to open Floating Rate Bulk Term Deposit
A Eligible - Singly B Eligible – Jointly with Guardian
C Either Singly or Jointly with Guardian D Not Eligible
155 What is the Minimum Deposit can be placed in Floating Rate Bulk Term Deposit
A Rs.1 Crore B Rs.2 Crores
C Rs.5 Crores D No such restrictions
156 DICGC insures the principal and interest up to a maximum amount of ____
A Rs. 1 Lacs B Rs.3 lacs
C Rs. 5 lacs D Rs. 10 lacs
157 Cash payment to third party using cheque for a per seg customer at non home
branch is __
A Rs. 5000/- B Rs. 25000/-
C Rs.10,00,000/- D Not allowed
158
158 The link to access e-register is ____
A https://eregisters.statebanktimes.in B https://www.eregister.statebanktimes.in
C https://e-register.statebanktimes.in D https://eregister.statebanktimes.in
159 What is the debit card issued to family savings account “SBI RISHTEY”:
A Global debit card B Classic debit card
C Pride debit card D Platinum debit card
160 What is the Personal Accidental Insurance (Death Cover) for SBI Rishtey
A Rs.1 lacs B Rs. 5 lacs
C Rs. 10 lacs D Not eligible
161 What is the charges for activating an Inoperative account?
A Rs. 100+GST B Rs. 500+GST
C Rs. 50+GST D Nil
162 Which of the following is true with regard to Inoperative account?
A SMS sent after one year of non- B SMS sent after 21 months of non-operation
operation of account of account
C SMS sent on the day account D All the above statements are correct.
become inoperative
163 All the unclaimed deposits are found in____
A https://www.sbi.co.in B https://sso.sbi.co.in
C https://info.sbi D https://score.sbi
164 “Nominate today for a better tomorrow” campaign launched for___
A To open all new accounts with B To open more Proprietor owned Current
mandatory nomination Account
C To register more nomination in D To register more nomination in Salary
Proprietorship account package savings account
165 What is the Current Account Product variant for Govt. Depts/Autonomous Bodies/Statutory
Bodies & Defence-Para Military Establishments?
A 5010 2291 B 5011 2191
C 5011 1291 D 5010 1921
166 What is the MAB for Silver CA?
A Rs.50,000/- B Rs.1,00,000/-
C Rs.2,00,000/- D Rs.10,000/-
167 What is the penalty is MAB >50% in Rhodium CA?

A Rs. 25000/- per month B Rs. 15000/- per month
C Rs. 25000/- per quarter D Rs. 15000/- per quarter
168 What is the cash deposit limit at non home branch for for Rhodium CA?
A Rs. 25 lacs B Rs. 10 lacs
C Rs. 5 lacs D No limit
169 What is the overall cash deposit limit for cash deposit in Rhodium CA including
home branch?
A Rs. 25 lacs B Rs. 100 lacs
C Rs. 600 lacs D Unlimited
170 In our Bank customer can open___
A Rhodium CA B Platinum CA
C Arthia CA D All the above
159
ANSWERS – LIABILITY PRODUCTS
QN 1 2 3 4 5 6 7 8 9 10
ANS D D A C C A B C C B
QN 11 12 13 14 15 16 17 18 19 20
ANS D C D B D C D D D C
QN 21 22 23 24 25 26 27 28 29 30
ANS D D B D D D D C D C
QN 31 32 33 34 35 36 37 38 39 40
ANS C D A C B A C D B D
QN 41 42 43 44 45 46 47 48 49 50
ANS D D D A A C C D B A
QN 51 52 53 54 55 56 57 58 59 60
ANS C B A C C B A D D D
QN 61 62 63 64 65 66 67 68 69 70
ANS D A D D D C A C A D
QN 71 72 73 74 75 76 77 78 79 80
ANS D C C B D A A B D C
QN 81 82 83 84 85 86 87 88 89 90
ANS B D A C B A D A C A
QN 91 92 93 94 95 96 97 98 99 100
ANS D B A C C A B A A C
QN 101 102 103 104 105 106 107 108 109 110
ANS D A B D B D D D B C
QN 111 112 113 114 115 116 117 118 119 120
ANS D B C A C C C B D D
QN 121 122`1 123 124 125 126 127 128 129 130
ANS D D D D D D C C B B
QN 131 132 133 134 135 136 137 138 139 140
ANS D A A D C A C D B D
QN 141 142 143 144 145 146 147 148 149 150
ANS A D B A A A D B A B
QN 151 152 153 154 155 156 157 158 159 160
ANS D C C D B C B D B B
QN 161 162 163 164 165 166 167 168 169 170
ANS D D A C B A B B C C
160
P SEG DEPOSITS
Product Basic Savings Savings Plus Account

Savings Bank
Bank Deposit
Account
Account (BSBDA)
Auto Sweep TD/STD
Min
Nil Balance Nil Balance
Deposit
Period: 1 to 5 years
Max No Upper limit To provide an automatic facility to
No Upper limit
Deposit high net worth savings bank
Period N.A. N.A. customers for their excess funds in
Others Interest 2.70%. KYC Compliant. SB account to be invested in Term
Simplified Account Deposits on an ongoing basis and
Interest opening form. to effectively combat competition.
calculation will be
on Daily product Customer cannot Threshold Limit: Rs.35,000/-.
basis. have both normal
Savings Bank Any surplus funds retaining a
Interest will be Account and minimum (resultant) balance of
credited BSBDA (Normal SB Rs.25,000/- (to be set up by
Quarterly to be closed within customer) will be transferred as
(3/6/9/12th 30 days from the Fixed Deposit with a minimum of
month) opening of BSBDA). Rs.10,000/- & in multiples of 1,000/-
Remarks In order to enable at one instance.
QAB >= 1 L &
the common man to
Senior Citizen. - Customer has the option to choose
open/maintain bank
Free MCCs, either LIFO or FIFO Methods.
accounts free of
cost.
QAB < 1L -First If option not chosen, the system will
25 cheque leaves consider LIFO Method for breaking
1) Cheque book
free in a financial the deposits.
facility available.
year, thereafter
10 Chq -30+ST,
2) Basic Rupay
25 Chq-75 + ST,
ATM-cum-debit card
50 Chq - 150 +
given, No AMC.
ST.
3) First 4 debit
For CSP -
transactions in a
Irrespective of
month including
QAB – NIL.
our/other bank ATM
withdrawals are
Penalty for not
free.
maintaining MAB
waived w.e.f.
4) Collection of
11/3/2020.
Govt. cheques –
free.
SMS Alert
charges waived
5) INB Facility is
w.e.f. 1/1/2020.
available.
161
SB - Pehla SB - Pehli
Product SB-OD under PMJDY
Kadam Udaan
Min
Deposit Minor Accounts
Minor Accounts (of (above 10 years
any Age). of Age)
Max
Deposit To be operated by Singly operated.
Guardian/Natural
Guardian/Mother
as Guardian. Available to
Period minors who can Age: 18- 60 years,
sign uniformly
and comply with 6 months old account,
KYC norms.
Account seeded with Aadhaar.
Life cover of Rs.30,000/-

Minor's Photo embossed ATM-cum- available from LIC (Aam Aadmi
Others Debit Card. Bima Yojana),
Max Balance (Singly)-Rs. 10 lacs 2 lacs - Personal Accident

Remarks Jointly with Guardian - Rs.20 lacs, Cover
Restrictions – Period of Loan: 36 months,
ATM/INB/POS : Rs. 5,000 per day. Loan Amount:

Mobile: Rs.2,000 per day.
50% of credit summations
10 Cheque leaves. during the last 6 months,
OD - 2 months’ salary in case of Salary
Package for Pehla Kadam (Not for Average Balance - 4 months,
Pehli Udaan).
Rs.5000/- whichever is less
Auto Sweep- Min Threshold:
Rs.20,000;
Sweep in multiple of 1000/- with a
minimum of 10,000/-.
PAI available (for parent - Pehla

Kadam) by SBI General.
Smart Scholar (Optional) - Child Plan
offered by SBI Life.
162
Term Deposit -
Product Floating Rate Bulk Special Term
Term Deposits
Term Deposit Deposits
(FRBTD)
Minimum: Rs. 2
Crores and in
Min
1,000/- multiples of 1,000/-
Deposit
Rs.1,00,000/-
thereafter
Max No maximum.
No maximum No maximum
Deposit TDS applicable.
Min 91 Days to 3
years.
Period NRE TD Minimum 1 6 months to 10
7 days to 10 years
year. years
No interest if closed
before 91 Days.
Others Sr Citizens– 0.50% All Individuals
extra. (Including NRIs) and
For Premature Non-Individual
closure upto 5 lacs - Customers. Sr Citizens– 0.50%
0.50% penalty, Minors not eligible, extra,
above 5 lacs upto Rs. Singly or Jointly.
2 Cr - 1.00%. Interest option - M/Q For Premature closure
Loan varying from /Calendar Quarter / upto 5 lacs - 0.50%
85% to 95% of Half Yearly as per penalty, above 5 lacs -
deposit is available instructions. 1.00%
depending on No additional int for
residual maturity of Staff/Senior Citizens/
FD. Staff Senior Citizens.
Remarks Interest can be paid
Introduction of new
monthly/quarterly/
product FRBTD with
annually for monthly
interest rate linked to
interval at discounted
an external
rates.
benchmark (i.e. Repo
TDS applicable if
Rate).
interest exceeds
Rs.40,000/- per Interest compounded
Loan upto 90%
customer, per bank quarterly and paid at the
available of FRBTD
(Rs.50,000 for Senior time of maturity.
(Excluding Interest).
Citizens)
TDS can be debited All other features are
ROI of loan 1.50%
to SB or CA. same as Term Deposit.
above the deposit
Auto renewal if no
rate.
maturity instructions
received.
Penalty for premature
Nomination facility
payment will be
available &
1.50% for all other
recommended.
tenors.
163
SBI Tax
SBI Multi Motor Accident Claim
Product Savings Annuity Deposit
Option Annuity Deposit
Scheme, Scheme
Deposits (MACAD)
2006
25,000/-, Monthly
Min
annuity to be 1,000/- (Annuity
Deposit 1,000/- 10,000/-
received is Payment)
Rs.1000/-
Max
Deposit 150,000/- No maximum No limit No Limit
Period Min 5 years
Min 1 year
(lock-in- 36/60/84 or 120 36 Months to 216
period), months months
Max 5 years
Max 10 yrs
Others As applicable
to Term
1) To enable the Deposit product for
Deposit.
Interest as depositor to pay victims/ claimants of
applicable one-time lump Motor accident who are
FDs with
to FDs. TD sum amount and awarded compensation
automatic
or STD can to receive the through various
withdrawal
be opened. same in EMIs, Tribunals/ Courts shall
facility so as
PAN comprising a part be deposited in MACT
to provide
Mandatory. of the principal Claims SB a/c &
liquidity as
amount as well MACAD.
and when
as interest on the
required.
reducing
Remarks Withdrawals Individuals including
principal amount,
can be made Minors (through
compounded at
in units of guardian) in single
quarterly rests
Rs.1,000/- name.
and discounted
Resident from the Passbook given for
to the monthly
Individual, Deposits by MACAD Accounts.
value.
HUF can issuing a No Loan/Nomination is
2) Loan upto 75%
invest – FD cheque from available.
of balance amt of
cannot be Savings Bank Premature/Part Payment
annuity. Further
prematurely Account. The with permission from
annuity to be
closed & no balance Court.
credited to loan
loan facility amount in No premature payment
account only.
before 5 MODs penalty.
3) Premature
yrs. continue to TDS Applicable. 15G/H
payment only in
earn TD rates can be submitted.
case of death of
applicable at Ref: e-Cir 633 dated 16-
depositor
time of initial 8-2018
deposit.
164
SBI Capgains Plus – Under

Recurring
Product SBI Flexi Deposit Capgains Accounts Scheme
Deposit Scheme
1988
5000/- per year
Min Rs. 1,000 in case of Capgains
100/- and 500/- at any
Deposit Term Deposits
one instance
Max
No maximum. TDS applicable,
Deposit No maximum 50,000/- per year
Form 15G/H can be accepted
Minimum 12
Minimum 5 years Period not exceeding 2 to 3
months.
Period years from the date of transfer of
Maximum 120
Maximum 7 years original asset.
months.
Others Interest as
applicable to FDs. For Resident Individuals, Non-
individuals, NRIs, HUFs -
Interest, as
Compounding Investment of Sale proceeds of
applicable to
quarterly interest Capital Assets for exemption
Term Deposit
based on the from Capital Gains Tax under
interest for the
balance provisions of Sec 54 of IT Act.
period of RD.
outstanding on the A/c can be opened by all
last date of the branches except rural branches.
month.
Remarks Loan/Overdraft
available upto
90% available on
the balance 1) Nomination - Up to 3
against RD. 1) Variant of RD – Nominees.
variable deposit 2) No Loan facility.
TDS Applicable. instead of fixed 3) No additional interest for Sr.
instalment. Citizens, Staff, Bulk Deposits.
RD A/c of period 4) Setting up of SB a/c is
5 years and less 2) TDS mandatory.
→ Penalty shall Applicable. 5) No Cheque book or ATM card
be Rs.1.50 for or INB facility (only viewing) for
every Rs.100 per 3) Penalty Rs.50/- Capgains SB account.
month and per year for 6) FD withdrawals to be routed
default of through Capgains SB account.
For period above minimum deposit. 7) Cash withdrawals only upto
5 years→ Penalty Rs.25,000.
shall be Rs.2.00
for every Rs.100
per month.
Back to Index page
165
P SEG – ASSET PRODUCT
MCQs – Home Loan
1 Home Loan cannot be sanctioned for the following purposes
a) Purchase a new house b) Reimbursement of investment in house made
from own resources during the preceding 18
months
c) Purchase of an old house d) Repairs to an existing house
2 How many Form 16 or Income Tax Returns (ITRs) needs to be obtained in case of
salaried applicants of a Home Loan?
a) Last two financial years b) Last three financial years
c) Last one financial year d) Not required and last 6 months salary slip is
enough
3 In case of Self-employed, how may latest I.T. Returns need to be obtained for a Home
Loan?
a) Last two financial years b) Last three financial years
c) Last one financial year d) Last Four financial years
4 What is the procedure for arriving net annual income for
Businessmen/Professionals/Self-Employed
a) Highest Net Annual Income b) Average Net Annual Income of latest 3 ITRs
among latest 3 ITRs
c) Net Annual Income of latest d) Lowest Net Annual Income of latest 3 ITRs
ITR
5 What is the EMI/NMI Ratio applicable for the Salaried applicants of Home Loan
having Net Annual Income of above Rs.10.00 lacs and with CIBIL score of 750 and
above.
a) 60% b) 65%
c) 70% d) 75%
6 What is the EMI/NMI Ratio applicable for the home loan applicants having net annual
income of up to Rs.1.20 lacs
a) 20% b) 30%
c) 40% d) 50%
7 What is the applicable LTV Ratio for a housing loan of Rs.75.00 lacs?
a) 90% b) 85%
c) 80% d) 75%
8 What is the Validity of Sanction in case Home loans?
a) 3 months from the date of b) 3 months from date of sanction
documentation
9 What is the maximum permissible moratorium period available in our Home loans in
conformity with authority structure for this purpose?
10 Maximum loan for repairs/renovations normally doesn’t exceed
a) Rs.5 Lacs b) Rs.10 Lacs
c) Rs.20 Lacs d) No such limit and as per the normal eligibility
norms under Home Loan scheme
11 A prospective borrower can avail home loans from ______.
166
a) At the place of construction b) At the place of his employment / at a Branch loca
ted at other center where he/she has ongoing
relationship for last two years, by securing the
loan repayment through check
c) At the place of his residence d) Any of the above
What is the maximum quantum of finance permissible for furnishings in a housing
loan project cost?
a) 15% of the cost of the b) 10% of the cost of the house/ flat subject to
house/flat subject to maximum maximum Rs. 25 lacs
12 Rs. 50 lacs
c) 15% of the cost of the d) 10% of the cost of the house/ flat subject to
house/flat subject to maximum maximum Rs. 20 lacs
Rs. 25 lacs
CERSAI has been established as a company under
a) Section 20(1) of the b) Section 201 of BR Act
13 SARFAESI Act 2002
c) Section 20(1) of Companies d) Section 201 of Companies Act
Act
If a borrower makes a cash deposit to his loan account in a non-home branch charges
applicable as under
14
a) Normal non-home charges b) No charges if account is standard
c) No charges if account is NPA d) No charges
Execution of documents on the basis of POA is available only to those borrowers
15 a) Defence Services and Para b) NRIs

Military forces
c) Both a & b d) In all cases
The Power of Attorney for execution of Home Loan documents is restricted to close
relatives which does not include _________.
16 a) Brother b) Father-in-law
c) Brother-in-law d) Mother-in-law
Two valuation reports mandatory for home loan amount of
a) Rs.1.00 crore and above b) Above Rs.1.00 crore
c) Rs.1.00 crore if property d) Rs.1.00 crore if property situated at RUSU
17 situated at Non-Metro centers centers and Rs.2.00 crore if situated at Urban/
and Rs.2.00 crore if situated at Metro centers
Metro centers
Home Loan Borrowers falling under Commercial Real Estate (CRE) and
Individuals engaged in business maximum loan tenor will be _____ years.
18
The Upward / Downward refixing of EMI can be granted once in every _____ during the
loan term, provided other terms and conditions of EMI reset are fulfilled.
a) Two years b) Five years
19
c) Three years d) No such provision
20 RACPCs / Branches may permit re-fixing of EMI downward if ______ of the outstanding
167
amount is prepaid in one instance.
a) 20 % or more b) 25 % or more
c) 10 % or more d) No provision
Scrutiny of Gift Deed and POA by Bank’s Law officer will be waived in respect of loans
______
21
a) Less than Rs.1 Crore b) Less than Rs. 2 Crores
c) Less than Rs. 50 Lacs d) Not waived for any limit.
Obtention of certified copies of title deed is mandatory, in case of HL value
22 a) More than Rs. 50 Lacs b) Rs. 1 Crore and above
c) Below Rs. 1 crore d) Below Rs. 50 lacs
In case of salaried person, the deviation approval to be obtained from ____ for break
in service for a brief period of up to 3 months during the last two years provided the
23 applicants are currently in the Service.
a) From AGM RACPC b) From DGM B&O
c) No deviation required d) From GM Network
How many co-applicants are permitted in Home loan without deviation and with
deviation approval from AGM
24
a) 4 & 6 b) 6 & 10
c) 2 & 4 d) 3 & 5
NOC from the employers (Banks and other organizations) _____ when their employees
seek Home Loans from our Bank.
25 a) Will not be insisted upon b) Will be insisted upon
c) Deviation from AGM needs to d) Deviation from DGM(B&O) needs to be obtained
be obtained
In case of Independent houses under construction, property insurance should be taken
a) at the time of disbursing the b) at the time of disbursing the final instalment
26 first instalment
c) after the completion of d) Immediately on sanction of the Home Loan
construction
At the time of loan initiation, the Home Loan customer will be offered an insurance
cover for a period of _____ or for the tenor of the loan, whichever is lower, subject to
its renewal from time to time.
27
In the case of flats/villas under construction and developed by builders, property
insurance should be taken ______
a) At the time of disbursing the b) At the time of disbursing the final instalment
28
first instalment
c) After the completion of d) Immediately on sanction of the Home Loan
construction
Stamp Duty, Registration Charges and other documentation charges has been
permitted to be added to the cost of the house/dwelling unit for the purpose of
calculating LTV Ratio in cases where the total project cost of the dwelling unit is
________
29
a) Does not exceed Rs.10 lacs. b) Does not exceed Rs.25 lacs.
c) Does not exceed Rs.5 lacs. d) Cannot be include
168
If repayments are in arrears for two successive months in Home Accounts, inspection
should be conducted _____
30
a) Within a month b) Within a week
c) Immediately. d) Within 3 months
In case of NPAs in Home Accounts, inspection should be conducted _____
31 a) Monthly b) Quarterly
c) Half yearly d) Yearly
Home Loan disbursements should be done in the following mode(s) only
a) RTGS/NEFT b) IOI with a/c payee, duly incorporating the seller’s a/c
32
no. & name of the Banker
c) Through Banker Cheque d) Either A or B
Execution of Documents should be done at
a) RACPC/Applicant’s b) Mutually agreed Mobile Team
Residence/ Branch Premises/
33
Business Place
c) Special Documents Execution d) All of the above
Desk (SED)
The CIC reports to be obtained for housing loan more than Rs.10 Lacs is/are
34 a) CIBIL b) CIBIL & Experian
c) CIBIL & CRIF High Mark d) Either b) or c)
Penal interest @2% over and above the agreed interest rate will be recovered
for the delayed period on the entire outstanding in cases where valid mortgage is not
created within _____ of execution of Sale deed or issue of possession letter by
35
builders/Occupation certificate, whichever is earlier.
When the applicant is acquiring residential property from their own close relatives
other than spouse such as parents, siblings, etc., Home Loan proposals may be
36 considered after obtaining deviation from ___________
a) AGM (RACPC/Branch) b) No deviation required
c) No such provision d) DGM (B&O)
Home loans to builders/partners/Director for purchase of apartments in their own
project is _________
37 a) Permitted b) Not permitted
c) Deviation from DGM(B&O) is d) Deviation from GM(Network) is required
required
CERSAI registration charges for the loans above Rs. 5 lacs
38 a) Rs.50 plus GST b) Rs.100 plus GST
b) 0.50 % of limit or max Rs.500 d) No charge
BGL account number ____________ (followed by five digit Branch Code and a check
digit) has since been rolled out in CBS for crediting CERSAI charges recovered from
39 the Home Loan borrowers.
a) 3199842 b) 3198941
c) 3199841 d) 3199482
Priority sector advances for Repairs to damaged dwelling units per family in Metro
areas w.e.f FY 2020
40 a) Rs.10 lacs b) Rs. 6 lacs
169
Priority sector advances for Repairs to damaged dwelling units per family in other than
Metro areas
41
a) Rs.10 lacs b) Rs. 6 lacs
Expand RLLR
42 a) Repo Linked Lending Rate b) Repo Linked Leading Rate
c) Repo Linked Life Rate d) Repo Linked Least Rate
If the document to be executed at different States the same can be done by paying the
____ as applicable to the either of the places of execution.
43 a) Lowest stamp duty b) Highest Stamp duty
c) Lowest and Highest at both the d) No such provision
states
Which one of the following is not an advantage of Retail Credit?
a) Retail Loans are stable and b) Minimal requirement of human resources
44 growing
c) To build a strong customer d) Low credit risk
base
In cases where seller of the property is having loan at other Banks/HFCs/FIs, initial
disbursement is to be done to other Banks/HFCs/FIs. The maximum time period for
45 receiving the documents from other Bank/FI is ___.
Expand RERA.
a) Real Estate Registration Act b) Real Estate Regulation Act
46
c) Real Estate Regulation d) Real Estate Regulatory Authority
Authority
Bank should return the securities documents to the borrower within 15 days of closure of loan
account subject to Bank’s final claim settlement. In case of delay, Bank has to pay ______
47 NIL b) Rs.100/- per day beyond 15 days subject to maximum of

a)
Rs.10,000/-
c) Rs.100/- per day beyond 15 days d) Rs.100/- per day beyond 15 days subject to maximum of
subject to maximum of Rs. 5000/- Rs.1000/-
The Bank has entered into tie-up arrangement with .......... as our Corporate Agent for
marketing of our Home Loans.
48
a) SBI General Insurance b) SBICAP Securities Ltd. (SSL)
c) Motilal Oswal d) SBI Funds Management P Ltd
We have to file charge in CERSAI site in respect of equitable mortgage created by us
within ___ days of creation of mortgage.
49
a) 15 b) 45
c) 30 d) Immediately
Mrs. Sonam is a doctor and married. She wants to gift her mother a flat. Can we
sanction a Home Loan to Ms. Sonam and her mother jointly if both of them want to co-
own the property?
50 a) Yes b) No, married daughter cannot be a co-applicant
c) No, Ms. Sonam's husband d) No, Ms. Sonam's father should also join as co-
should also join as co-applicant applicant in the loan.
in the loan
170
ANSWERS TO MCQs-HOME LOAN
1 B 2 A 3 B 4 C 5 D
6 A 7 C 8 B 9 D 10 B
11 D 12 A 13 A 14 D 15 C
16 C 17 A 18 B 19 C 20 A
21 A 22 B 23 C 24 B 25 A
26 A 27 C 28 C 29 A 30 C
31 C 32 D 33 D 34 C 35 D
36 D 37 B 38 B 39 C 40 A
41 B 42 A 43 B 44 B 45 A
46 D 47 C 48 B 49 D 50 A
171
MCQs on Home Loan Variants
1 What is the Minimum Loan amount that can be sanctioned under SBI Realty
Loan?
a) Rs.3.00 Lacs b) Rs.5.00 Lacs
c) Rs.10.00 Lacs d) No such stipulation
2 SBI Reality can be sanctioned as ______
a) Term Loan Only b) Overdraft Only
c) TL and OD d) TL/DL and OD
3 Maximum Loan Tenor applicable under SBI Realty Loan is _______
a) 60 Months b) 90 Months
4 What is the Maximum age of the applicant under SBI Realty Loan
5 EMI/NMI ratio for more than Rs. 10 lacs of income under SBI Realty Loan is _____
a) 70 % b) 60 %
c) 65 % d) 50 %
6 What is the Maximum time period stipulated for construction of house under SBI
Realty Loan?
a) 2 years from the date of b) 3 years from the date of first disbursement
sanction
b) Construction has to commence d) 5 years from the date of last disbursement
before 2 years and completed
before 5 years
7 In SBI Realty Loan, two title search reports, one before the loan is sanctioned
and another before disbursement of the loan, should be obtained from two
different empaneled advocates in case of loans ______
a) 1 Crore and above b) Above 1 Crore
b) 50 Lacs and above d) Above 50 Lacs
8 Find the correct statement with regard to SBI Realty Loan
a) Takeover permitted b) Permitted only for salaried customers
c) Permitted for salaried and non- d) Reimbursement facility available within a
salaried customers period of 12 months from date of purchase
9 Minimum Loan amount under SBI Maxgain Scheme?
c) Rs15.00 Lacs d) Rs.20.00 Lacs
10 Maximum Housing loan amount in SBI Maxgain Scheme?
a) Rs. 5 crores b) Rs. 10 crores
c) Rs. 3 crores d) Rs. 2 crores
11 Find the incorrect statement with regard to SBI Maxgain Scheme?
a) Facility: Overdraft b) ATM card can be issued
c) Customers will get the benefit d) Eligible for customers having a balance of
by saving Home Loan Interest Rs.5000/- in their SB/CA
12 Conversion of Existing Home Loan (Term Loan) to Maxgain Account (OD) will be
extended to Home Loan borrowers except _______
a) Fully disbursed accounts having b) IRAC status of the account should be
outstanding of Rs. 20 lacs and Standard
more
c) Staff Individual Housing Loans d) Security has already been created
172
13 What is the minimum loan under Home Top-up Loan?
a) Rs. 1 lac b) Rs. 2 lacs
c) Rs. 5 lacs d) No minimum amount
14 At any point of time not more than _____ loans will be allowed to exist under
Home Top-Up Loan Scheme.
a) One b) Two
c) Three d) No restrictions as long as LTV Ratio and
EMI/NMI Ratio permits
15 The maximum permissible tenor of the Home Top Up loan will be the residual
tenure of underlying Home Loan or ____ years, whichever is ______, subject to
liquidation of the loan before the borrower attains the age of 70 years.
a) 15 years, lower b) 10 years, higher
c) 10 years, lower d) 15 years, higher
16 Extension of the mortgage on the residential property already mortgaged will not
be mandatory for Home Top up Loans ________ where the customer wants the
loan tenor which is not beyond the maturity period of underlying Home Loan.
a) Upto 5 lacs b) Upto 10 lacs
c) Upto 2 lacs d) Extension is not at all mandatory
17 Mrs. Rekha (who is not part of underlying home loan), wants to join as borrower/
guarantor to shore up the loan eligibility for Home Top-Up Loan. Find out the
statement which is Correct.
a) No, it is not possible b) Yes, it is possible in case of blood relatives
c) Yes, it possible only if Mrs. d) Yes, it is possible in case of Spouse,
Rekha is a Spouse or Mother of Parents, Children & Siblings
the home loan borrower
18 Mrs. Rekha Sharma is a part of underlying joint home loan with her husband Mr.
Sharma. Now, Mr. Sharma wants to include his son her place for the new Home
Top-Up Loan. Find out the statement which is Correct.
a) No, it is not possible b) All the borrowers of the Home Loan are
needed to join as applicants in the Top Up
Loan.
c) Yes, if the property is registered d) Inclusion or Exclusion of a borrower is not
only in the name of Mr. Sharma possible
19 Under Home Top up Loan Overdraft facility available for limits
a) Up to Rs.20.00 Lacs b) Above 20.00 Lacs and upto Rs.2.00 Crores
c) Above 2 Crores and Up to 5 d) All of the above
Crores
20 For considering HL Top up loan under Category-I, the original HL limit should be
a) More than Rs. 20 lacs b) More than Rs. 25 lacs
c) More than Rs. 30 lacs d) More than Rs. 50 lacs
21 What is the maximum loan for Category-2 customers under Home Top-up Loan
a) Rs.1 crore b) Rs.5 crores
c) Rs.10 crores d) No upper limit
22 Which is not the eligibility criteria for Insta Home Top Up Loan?
a) Minimum Home Loan b) Satisfactory Track Record of 2 years
amount of Rs.20 lacs with INB
facility
c) CIBIL Score of 700 d) Minimum Residual tenure of Home loan of 5
years
23 Minimum and Maximum loan amounts under Insta Home Top Up loan scheme
173
a) Rs.1.00 Lac/Rs.5.00 Lacs b) Rs.1.00 Lac/Rs.10.00 Lacs
c) Rs.5.00 Lacs/Rs.10.00 Lacs d) Rs.5.00 Lacs/Rs.15.00 Lacs
24 What is the maximum loan under Insta Home Loan Up Loan Scheme for a Home
Loan borrower who had earlier availed Rs.50 lacs?
a) Rs. 5 lacs (i.e. 10% of Home b) Rs.2.50 lacs (i.e. 5% of Home Loan)
Loan)
c) Rs. 5 lacs (maximum eligibility) d) Any amount (Home Loan Limit Minus the
present outstanding)
25 Nature of facility under Insta Home Top up Loan scheme
a) TL only b) OD only
c) TL or OD as per customer d) OD with reducing Drawing Power
request
26 When will be the repayment commence in case of Insta Home Top up loan after
disbursement?
27 The borrower’s acceptance of Terms & Conditions will be validated in an Insta
Home Top-Up Loan by using ___?
a) One Time Password (OTP) sent b) Arrangement Letter
to his registered mobile number
c) Email from registered mail d) All of the above
address with Bank
28 Under what conditions the second Insta Home Top Up loan will be permitted?
a) Only on the condition that 1st b) Only on the condition that there is a gap of
Insta Top up Loan is closed one year from the date of opening the
pervious Insta Top Up Loan.
c) Both A & B d) None of the above
29 What will be the processing fee levied for Insta Home Top Up Loan?
a) A flat processing fee of b) A flat processing fee of Rs.2000/- plus
Rs.1000/-plus applicable taxes applicable taxes
c) A flat processing fee of d) No processing fee for Insta Home Top Up
Rs.2500/- plus applicable taxes Loan
30 What is the validity of the Insta Top Up Loan offer for an eligible Home Loan
borrower?
a) 30 days b) 1 Month
c) 90 days d) 3 Months
31 What will be the Maximum Tenor under Insta Home Top-up Loan scheme for an
underlying Home Loan with a residual maturity period of 15 years?
32 What is the minimum existing Home Loan limit to get Insta Top up Loan?
c) Rs.15.00 Lacs d) Rs.20.00 Lacs
33 Maximum age for sanction of SBI Flexipay Home loan is
b) 50 years d) 45 years
34 What benefit is provided by SBI Flexipay Home Loan?
a) Provides Loan amount of 1.50 b) Provides Loan amount of 1.50 times the
times the eligible amount eligible amount subject to EMI/NMI Ratio
174
subject to LTV Norms
c) Provides Loan amount of 1.20 d) Provides Loan amount of 1.20 times
times the eligible amount the eligible amount subject to
subject to LTV Norms EMI/NMI Ratio
35 Which of these statements is not correct regarding SBI Flexi Pay Home Loans?
a) Age: 21 -45 years b) Salaried customer with minimum 2 years of
service
c) Repayment: Minimum 5 years, d) Minimum Loan: Rs. 20 lacs
Maximum 30 years
36 In reverse mortgage loans, the minimum age of spouse is
c) 60 years d) Not stipulated
37 Minimum age for the first borrower for SBI Reverse Mortgage Loan
38 What is the Minimum &Maximum Loan under SBI Reverse Mortgage Loan?
a) Rs. 2 lacs, Rs. 1 Crore b) Rs. 1 lac, Rs.1.50 Crores
c) Rs. 3 lacs, Rs. 1 Crore d) Rs.3 lacs, Rs. 1.50 Crores
39 The realizable value of a house valued Rs.1.00 crore and what will be quantum
of loan that we can sanction under Reverse Mortgage Loan Scheme (Loan
amount would include interest till maturity)?
a) Rs.90.00 Lacs b) Rs. 85.00 Lacs
c) Rs.80.00 Lacs d) Rs. 75.00 Lacs
40 Which Is the correct statement with regard to LUMPSUM payment under Reverse
Mortgage Loan Scheme
a) The lump sum amount will be up b) Rs.15.00 lakhs
to 50% of the Net Present Value
of limit, discounted at applicable
ROI for the relevant loan tenure
c) a) or b) whichever is higher d) a) or b) whichever is lower
41 What is the minimum loan amount that can be borrowed through SBI Privilege &
Shaurya Home Loan products?
42 Minimum Loan Term for SBI Privilege & Shaurya Home Loan products is __
a) 3 years b) 3 years excluding moratorium
43 Processing fee charged in case of SBI Privilege & Shaurya HL is ______
a) Flat fee of Rs.10,000/- + taxes b) Normal processing fee applicable
c) 50% concession in normal d) Processing fee waived
processing fees applicable to
Loans (minimum of Rs.2000/-)
44 What is the maximum age limit under SBI Privilege & SBI Shaurya Home Loan
by which time the loan should be fully repaid?
45 What is the minimum Loan Tenor under the Personal-Loan Against Property
scheme (P-LAP)?
175
46 What is the validity period of the Valuation Report for calculating the LTV ratio
under SBI Loan Against Property scheme?
a) Not more than 1 month old b) Not more than 2 months old
c) Not more than 3 months old d) Not more than 6 months old
47 What is the maximum amount of loan that can be borrowed under Loan against Property
scheme if property is located at Non-BPR urban Centers?
a) Rs.1.00 Crore b) Rs.2.00 Crores
c) Rs.3.00 Crores d) No such separate stipulation if property is
located at Non-BPR centers
48 Under which condition NRIs can borrow loan under P-LAP?
a) Only if own residential property or b) If own residential property or commercial
commercial property in his/her property in his/her own name or in the name of
own name spouse/ children
c) If own residential property or d) NRIs cannot avail loan under this scheme
commercial property in his/her
own name or in the name of
spouse/children/parent/sibling
49 A minimum CIBIL score of .......is required for a person to become eligible for SBI
Loan Against Property (P-LAP) Scheme
a) 550 b) 600
c) 621 d) 700
50 Maximum tenor of Realty Home loan
51 One of your customer Mr. A is having account with your branch and having
property at other center and requested to sanction a P LAP for Rs. 50 lacs. Who
can sanction the loan?
a) Home Branch b) Center where the property is located
c) Any branch (either a or b ) d) Any branch with the deviation approval not
below the rank of AGM
52 A new customer to be onboarded with minimum HL of Rs. _____ can be classified as
SBI Exclusive customer.
a) 30 lacs b) 50 lacs
c) 75 lacs d) 1 Crore
53 Minimum and Maximum loan amount under the product Home Loan to Non- Salaried
Segment – Differential offerings?
a) Rs. 50,0000 /- & Rs. 5 Cr b) Rs. 50,000 /- & Rs. 50 Cr
c) Rs. 1 lac & Rs. 5 Cr d) Rs.1 lac & Rs. 50 Cr
54 Minimum Age for NRI Home loan borrower
55 Minimum Loan amount in case of NRI Home Loan
c) Rs.10.00 Lacs d) No such stipulation
56 TAT for NRI housing loan where proposed property is under builder tie up
57 Maximum ceiling under home loan SBI Hamara Ghar Scheme
176
58 What is the pre-payment penalty under SBI Hamara Ghar if loan is closed within
the initial fixed period of 2 years
a) @ 1% b) @ 2%
c) @ 0.5% d) No prepayment penalty
59 Earnest Money Deposit (EMD) Scheme is a Short-term loan for earnest money
for allotment of a house up to 100% of the application money with a maximum of
c) 15 lacs d) None of the above
60 Minimum income to avail Earnest Money deposit scheme
a) No minimum income b) Rs.2.50 lacs per year
c) Rs. 2.00 lacs per year d) Rs.3.00 lacs per year
61 Type of facility under Earnest Money deposit scheme
a) OD with reducing DP b) Term Loan
c) Demand loan d) Overdraft
62 Minimum age stipulation for borrowers under SBI-Tribal Plus HL scheme
c) 25 years d) 18 years for women and 21 years for men
63 Maximum Loan amount under SBI-Tribal Plus Home loan scheme
64 Under what category SBI Suraksha loans are classified in P-Report
a) Home Loans b) Personal Loans
c) Other Personal Loans d) Unsecured Loans
65 Bank will submit the claims under PMAY scheme to
a) National Housing Bank (NHB) b) Housing & Urban Development Corporation
(HUDCO)
c) Canara Bank d) Ministry of Housing & Urban Affairs, Govt.
of India
66 What is the definition of "family" under PMAY scheme?
a) Husband, Wife & married children b) Husband, Wife, unmarried children & married
but residing along with parents but not earning children
c) Husband, Wife & unmarried d) Husband, Wife, Children irrespective marital
children status
67 Minimum Home Loan amount under Non-Salaried Segment
a) No Minimum Amount b) Rs.50,000/-
c) Rs.1 lac d) Rs.20 lacs
68 Maximum Home loan amount under Non-Salaried Segment
a) Rs.10.00 Crores b) Rs.20.00 Crores
c) Rs.25.00 Crores d) Rs.50.00 Crores
69 Under the Home Loan to Non-Salaried segment, relaxation in EMI/NMI Ratio will
be permitted where:
a) Minimum Loan Amount is Rs. b) Minimum Net Annual Income is Rs. 3 lacs
20 lacs,
c) Minimum Risk Grade is 3 under d) All of the above
Bank’s Risk Scoring Model.
70 What can be the maximum relaxation in EMI/NMI Ratio that can be permitted in
HL to Non-Salaried segment subject to certain stipulations?
a) Upto 5% b) Upto 10%
c) Upto 15% d) No relaxation is permissible
177
ANSWERS TO MCQs-HL VARIANTS
1 B 2 A 3 C 4 B 5 B
6 B 7 B 8 C 9 C 10 C
11 B 12 C 13 B 14 B 15 D
16 A 17 D 18 C 19 B 20 C
21 D 22 B 23 A 24 B 25 D
26 A 27 A 28 C 29 B 30 B
31 D 32 D 33 D 34 C 35 C
36 B 37 C 38 D 39 A 40 D
41 B 42 C 43 D 44 D 45 B
46 C 47 A 48 C 49 D 50 A
51 B 52 D 53 B 54 A 55 A
56 A 57 C 58 B 59 C 60 A
61 C 62 B 63 A 64 B 65 A
66 C 67 B 68 D 69 D 70 C
Back to Index page

178
MCQs - AUTO LOANS
1 What is the minimum age limit for sanction of SBI Car loan?
c) 25 Years d) No specific Age criteria
2 In Auto loans the maximum number of Co-borrowers can be
a) 1 b) 2
c) 3 d) No restrictions
3 What is the minimum loan amount under SBI Car Loan Scheme?
a) No minimum b) Rs.50,000/-
c) Rs.1 lac d) Rs. 2 lacs
4 What is the Maximum repayment period in SBI Car Loan Scheme?
5 What is the minimum repayment period in SBI Car Loan Scheme?
a) 2 years b) 1 year
c) 3 years d) No such stipulation
6 Under SBI Car Loan Scheme, the loan must be closed before borrower attains
the age of _______ years.
7 What is the maximum age limit for sanction of car loan?
c) 67 Years d) 70 years
8 What is the maximum number of car loans that can be sanctioned to an Individual
under SBI Car Loan Scheme?
a) 1 b) 2
c) 3 d) Any number of car loans with the
approval of GM.
9 What is the minimum Net Monthly Income required for a salaried person to
become eligible for SBI Car loan?
a) Rs.25,000/- b) Rs.20,000/-
c) Rs.10,000/- d) None of the above
10 What is the minimum Net Annual Income required for a Businessmen to become
eligible for SBI Car loan?
a) Rs.2 Lakhs b) Rs.2.50 Lakhs
c) Rs.4 Lakhs d) Rs.3.00 Lakhs
11 What is the maximum loan amount that can be sanctioned to a salaried person
under SBI Car loan scheme?
a) 30 times of NMI b) 48 times of NMI
c) 36 times of NMI d) 60 times of NMI
12 What is the maximum loan amount that can be sanctioned to an Agriculturist
under our car loan scheme?
a) 3 times of NAI b) 4 times of NAI
c) 5 times of NAI d) No such stipulation
13 What is the Turn Around Time (TAT) for processing the Car Loan proposals?
a) 2 days b) 7 days
179
14 Please select the EMI/NMI ratio of an applicant, whose Net Annual Income is
between Rs.5 lacs to Rs.10 lacs under Car Loan Scheme.
a) Not to exceed 60% b) Not to exceed 40%
c) Not to exceed 50% d) Not to exceed 65%
15 What is the EMI/NMI ratio for car loan seekers who have already availed a Home
loan from our Bank and their Annual income is above Rs. 10.00 lakhs?
a) 50% b) 65%
c) 60% d) 70%
16 Income of ........ cannot be included for arriving at the loan eligibility for Car Loans.
a) Spouse b) Father
c) Mother d) Father-in-law
17 Form 16 or IT Returns for last 2 years for Salaried Customers are waived for Salary
package Customers maintaining Salary Account with Bank for minimum ___
Months
a) 12 b) 6
c) 24 d) 36
18 Customers under Salary Package / Tie –up need to maintain % as margin for car
loans
a) 5% b) 10%
c) 15% d) No margin requirements
19 Women borrower gets ___ in interest rate concession under Car loan Scheme?
a) 0.05% b) 0.10%
c) 0.25% d) No interest concession available
20 Compilation of Opinion Reports / Assets & Liabilities Statements is waived for all
car loans up to Rs. 20.00 lacs; if, the CIC Score is _________ and above.
a) 750 b) 650
c) 800 d) 700
21 In case of Joint accounts in SBI Car Loan, repayment period will be counted on
the basis of age of ____
a) The younger borrower. b) Average age of the co-applicants
c) The elder borrower. d) None of the above
22 Which of the following statements is not correct regarding maximum loan amount
under Car Loans?
a) The maximum loan amount that can be b) Maximum loan that can be granted to
granted would be restricted to 48 times Self Employed/ Professionals/
the net monthly income of salaried Businessmen should be up to 4 times
persons. the Net Profit or Gross Taxable
Income per annum as per ITR, after
adding back depreciation
c) The maximum loan amount that can be d) All the above are correct.
granted to Agriculturists should be up
to 4 times the Net Annual Income.
23 In case of Car Loans, what are the income documents required to be obtained
from an applicant whose income is only from agriculture activity
a) Documents showing Land ownership b) Income certificate from Panchayat
c) Documents showing both land d) IT Returns along with Documents
ownership and cropping pattern showing both land ownership and
cropping pattern
180
24 What is the preliminary CIC report to be taken for car loan applicants
a) CIBIL b) CRIF High Mark
c) Equifax d) Experian
25 The second Credit Information Company (CIC) report for Car Loans has to be taken
from
a) CRISIL b) ICRA
c) EXPERIAN d) HIGHMARK
26 The second Credit Information Company (CIC) report for Car Loans has to be taken
for loans sanctioned ___________
a) Rs.10 lakhs and above b) Above Rs.4 lakhs
c) Above Rs.5 lakhs d) Rs.5 lakhs and above
27 The rate of interest applicable in SBI Car Loan Scheme will depend on
a) CIC Score b) Term of the Loan
c) Both a) & b) d) None of the above
28 The revised CIBIL Credit Vision Score applicable for All Govt./ Defense Salary
Package customers:
a) ≥ 650 b) ≥ 700
c) ≥ 689 d) ≥ 606
29 DSP/PMSP/IGSP Customers can avail car loan from which of the following places
a) Permanent Place of residence b) Place of Posting
c) Place where salary account is d) All the above
maintained.
30 What is the pre-payment penalty for car loans?
a) 0.5% of the pre-payment amount, b) 1% of the pre-payment amount,
monthly quarterly
c) 1.5% of the pre-payment amount, d) No prepayment penalty
quarterly
31 Prepayment penalty for car loans are levied at 1% of the prepayment amount plus
GST, quarterly, in case prepayment within ___________ years from the date of
disbursement.
a) 3 b) 1
c) 2 d) No Prepayment penalty
32 Foreclosure charges will be levied at the rate of ____________ in case foreclose
within 2 years from the date of disbursement of loan.
a) 3% + GST on theo-balance b) 2% + GST on theo-balance
c) 1% + GST on theo-balance d) No foreclosure charges
33 Car loan EMI can be re-set if the loan outstanding is at least _ and reduction in
rate of interest is ___ or more.
a) 1 lac and 1% b) 2 lacs and 2%
c) 5 lacs and 5% d) 5 lacs and 1%
34 Copy of _______ (application for registration of motor vehicle) to be obtained and

ensured that it contains correct particulars e.g. name, permanent address, PAN,
vehicle description, bank’s hypothecation clause etc.
a) Form 29 b) Form 20
c) Form 30 d) Form 34
35 Vehicle registration details are to be verified from _ website.

181
a) vehicle.gov.in b) vahan.nic.in
c) vehicle.nic.in d) vahan.gov.in
36 Verification of vehicle registration details from the website ‘vahan.nic.in’ should be
made in all car loans as soon as vehicle registration is known or within _____of
disbursement whichever is earlier.
a) A month b) 60 days
37 Re-verification of registration of vehicle in vahan.nic.co need be done again by _
a) By Branch official b) Maintenance official in BPR branches
c) Official appoint by RBO in Non BPR d) b) or c)
branches.
38 Application to RTO for making entry of Hypothecation subsequent to registration
a) Form 29 b) Form 20
c) Form 30 d) Form 34
39 In respect of Car Loans, if the borrower fails to get the vehicle registered, with
hypothecation charge in favour of the Bank, within ___ days from the date of
disbursement, charge of Rs. __ per month may be recovered.
a) 60 days 2,500/- b) 120 days 2,500/-
c) 60 days 5,000/- d) 120 days 5,000/-
40 In case of Car Loans, copy of Insurance policy for the 1st year is to be obtained
and retained with the loan documents and for subsequent years, it is not required
to be obtained from the borrowers. This is true in case of___________.
a) All standard Car Loans below Rs.20.00 b) All standard Car Loans above
Lacs Rs.20.00 Lacs
c) All standard Car loans irrespective of d) All Car loans irrespective of their
the loan amount IRAC status and amount of loan
41 The vehicle purchased is to be kept comprehensively insured in the name of the
borrower for the ........... or at least ...........above the loan amount outstanding,
whichever is higher
a) Market value, 20% b) Distress value, 20%
c) Distress value, 10% d) Market value & 10%
42 Who is the empowered authority to approve the deviation in CIC score ‘-1’ for
car loan applicant/s
a) DGM (B&O) b) GM (NW)
c) RM (RBO) d) None of the above
43 Car loan of applicants with CIC score -1 can be accepted with deviation when
a) Customer have bank account for b) Monthly single credit of Rs. 25000/- in
more than 12 months. the account other than system credit
for last 12 months. Income tax returns
are electronically filed and status of
Acknowledgement receipt (ITR-V)
verified online.
c) Verification of the business/profession d) All the above
continuity is done through online
verification of TAN/TIN/GSTIN
Number, which contains Date of
Registration and Address
182
44 While verifying the CIBIL report, the Branch official found that there is a Non-Credit
Card default of Rs.16,500/- Now, the Applicant’s proposal may be ____
a) Accepted b) Declined
c) Accept if single instance. d) Deviation may be approved by the
empowered authority.
45 Post disbursement inspection of vehicle must be carried out within _____ days
from the date of disbursement in respect of auto loans.
a) 30 b) 20
c) 15 d) 10
46 Penalty is to be recovered if the borrower fails to get the vehicle registered with
hypothecation charge in favour of the Bank, within __________ days from the date
of disbursement?
a) 30 b) 60
c) 90 d) 120
47 What is the penal amount to be recovered per month from borrower if he fails to
get vehicle registered within the days prescribed by the bank or charge of bank
gets vacated before liquidation of the loan?
a) 1000+GST b) 2000+GST
c) 3000+GST d) 2500+GST
48 In BPR Centres, migration of the auto loan documents PDDs to respective RACPCs
and RASMECCs to be effected
a) within 1 month from the date of b) within 3 months from the date of
disbursement disbursement
c) within 4 months from the date of d) within 2 months from the date of
disbursement disbursement
49 For the verification of vehicle registration details from the website ‘vahan.nic.in’
charge has been fixed as ________ which is to be paid on-line through SBI Internet
Banking.
a) Rs.150/- b) Rs.100/-
c) Rs. 50/- d) No such charge
50 Branches with NPA in Auto Loan more than __________ should be barred, by
withdrawing their sanctioning powers in Auto Loans; subject to approval from
Circle Management.
a) 2% b) 1%
c) 1.50% d) 0.50%
51 Which of these statements is correct regarding transfer of Car Loan accounts from
one branch to another?
a) Only Standard Car Loan accounts can b) Car Loan accounts can not be
be transferred from one Branch to transferred.
another at the request of borrower.
c) Only NPA Car Loan accounts can be d) None of the above
transferred from one branch to another
for better monitoring.
52 Number of notices to be served to the defaulting car loan borrower before and
after repossession of the vehicle
a) 6 b) 5
c) 3 d) 4
183
53 In case of seizure of Cars / Vehicles under Auto Loan Scheme, what is the trigger
point for seizure?
a) Said Car Loan account becoming NPA b) When account is irregular for more
than 30 days i.e., SMA1
c) Account has been categorized as d) Three months from the date of NPA
Doubtful Assets
54 In case of NRI Car Loans, the Resident Indian who will join the loan with the NRI
will be a..........in the loan.
a) Neither a Coborrower nor a Guarantor b) Guarantor
c) Either a Co-borrower or a Guarantor d) Co-borrower
55 Which of these statements is NOT correct regarding NRI Car Loans?
a) Tangible security covering at least b) NRIs having accounts with other
35% of the loan amount is required Banks for the last 24 months with a
minimum balance/ fixed deposits of
Rs.50,000/- are also eligible
c) Collateral security is waived. d) The borrower will have to open NRI
a/c with SBI for repayment of EMIs
56 What is the minimum Net Annual Income (NAI) of the applicant to become
eligible under NRI Car Loan Scheme
a) US $ 5000 or its equivalent b) US $ 10000 or its equivalent
c) US $ 12000 or its equivalent d) US $ 15000 or its equivalent
57 What is the maximum loan amount sanctioned under NRI Car loan scheme?
a) 12 times of Net Monthly income b) 15 times of Net Monthly income
c) 18 times of Net Monthly income d) 24 times of Net Monthly income
58 Which of these customers are eligible for any concession in Rate of Interest in car
loans?
a) Member of Parliament b) Woman
c) Both a) & b) above d) For car loans Rs. 10 lacs and above
59 Offer for our Pre approved Car loan to select customers is valid for
c) 90 days. d) 120 days.
60 EMI / NMI ratio for car loan applicants having NAI of Rs. 10 lacs and above?
a) 50 % b) 60 %
c) 700 and above d) 750 and above
61 What is the Maximum Loan Tenor under SBI Car Loan Lite Scheme?
c) 65 % d) 70 %
62 What is the margin for salary package account holders ?
a) 10 % of on road price b) 10 % of on road price subject to ex-
show room price
c) 5 % of on road price d) 5 % of on road price subject to ex-
show room price
63 What is the maximum age limit for sanction of Super Bike loan?
184
64 What is the EMI/NMI ratio for High value Super Bike loan when the borrower’s
income is above Rs. 10.00 lakhs
a) 50% b) 65%
c) 60% d) 70%
65 What is the Maximum Loan Tenor under High value Super Bike loan?
66 What is the maximum age limit for sanction of Two Wheeler Loan Scheme?
67 What is the minimum Net Annual Income required for availing loan under Two-
Wheeler loan Scheme?
a) Rs. 150000/- b) Rs.250000/-
c) Rs.300000/- d) Rs.400000/-
68 What is the minimum and maximum loan under Two-Wheeler Loan Scheme?
a) 30000, 250000 b) 30000, 400000
c) 25000, 300000 d) 30000, 300000
69 What is the Margin required for availing loan under Two-Wheeler Loan Scheme?
a) 15% b) 25%
c) 10% d) 30%
70 What is the maximum EMI/NMI ratio for availing Two Wheeler loan scheme?
a) 40% b) 45%
c) 50% d) 60%
71 What is the Maximum Loan Tenor under Two-Wheeler Loan Scheme?
72 What is the minimum Net Annual Income required to be declared in Application
form for availing loan under SBI Car Loan lite?
a) Rs. 150000/- b) Product withdrawn
c) Rs.300000/- d) Rs.400000/-
73 What is the EMI/NMI ratio applicable under SBI Car Loan Lite for the applicant
whose income is above Rs.10 lacs?
a) 40% b) Product withdrawn
c) 50% d) 60%
74 What is the Margin required for availing loan under SBI Car Loan lite?
a) 25 % b) Product withdrawn
c) 10% d) 30%
75 Repayment period for SBI Green Car loan is
a) 3 - 8 years b) 3 - 7 years
c) 3 - 5 years d) 2 - 8 years
76 Concession of _____________ bps in applicable ROI is available for SBI GREEN

CAR LOAN.
a) 10 b) 20
c) 15 d) 30
185
77 What is the maximum age limit for sanction of car loan under Assured Car loan
Scheme?
78 What is the minimum age limit for sanction of car loan under Assured Car loan
Scheme?
79 What is the minimum loan amount under Assured Car Loan Scheme?
a) 250000 b) 100000
c) 200000 d) 300000
80 What is the eligible amount under SBI Assured Car Loan Scheme?
a) 50% of unencumbered FDR b) 60% of unencumbered FDR
c) 75% of unencumbered FDR d) 100% of unencumbered FDR
81 Which of these statements about "Assured Car Loans" is NOT correct.
a) The loan should be repaid before the b) Loan amount can be up to 100% of
borrower attains the age of 75 years. the amount of Fixed Deposit
c) Pre-sanction survey is waived if the d) Applicants with CIBIL scores less
existing address with the Bank remains than 600 and those in -1, 0 & 1 to 5
same as the present address. categories are also eligible.
82 What is the minimum Net Annual income required for sanctioned of car loan
under SBI Loyalty Car Loan Scheme?
a) Rs.2,00,000/- b) Rs.2,50,000/-
c) Rs.3,00,000/- d) Rs.4,00,000/-
83 .......................Margin is stipulated on On-Road price of the vehicle in case of
Loyalty Car Loans.
a) NIL b) 5%
c) 10% d) 15%
84 In case of Loyalty Car Loans, extension of Mortgage will not be compulsory for
Loans up to
a) Rs. 5.00 Lacs b) Rs. 10.00 Lacs
c) Rs. 15.00 Lacs d) Rs. 20.00 Lacs
85 Ms. Kiran, an IT Professional, would like to purchase Honda City from Honda’s
Auto Terrace – a Certified Pre-Owned Car Outlet. Which car loan variant can be
offered to Ms. Kiran?
a) Car Loan Lite b) Green Car Loan
c) Certified Pre-Owned Car Loan d) Assured Car Loan
86 What is the minimum loan sanctioned under Certified Pre-Owned Car Loan?
a) 250000 b) 200000
c) 100000 d) 300000
87 What is the maximum loan sanctioned under Certified Pre-Owned Car Loan?
a) 20.00 lakhs b) 10.00 lakhs
c) No such limit d) 15.00 lakhs
186
88 What is the maximum age limit for sanction of car loan under Certified Pre-Owned
Car Loan?
89 What is the Margin requirement for availing loan under Certified Pre-Owned Car Loan?
a) 15% b) 25%
c) 10% d) 20%
90 Which of the following statements is incorrect regarding Certified Pre-owned Car Loan
Scheme?
a) Age of the vehicle should not be more than b) The ownership should not have changed
8 years old more than 2 times
c) Minimum Net Annual income required to d) 80% of the Invoice or IDV (Insured's
be eligible for this loan is Rs. 2,00,000 Declared Value), whichever is lower can
be financed.
91 Pre-Approved Car Loan (PACL) is available for customers in which online platform?
a) CRM b) INB
c) YONO d) None of the above
92 What is the minimum age limit for sanction of Pre-Approved Car Loan?
c) 25 Years d) No specific Age criteria
93 What is the CIC(CIBIL) cut off score to be eligible for PACL?
a) 700 b) 80
c) 750 d) 650
94 Pre-approved Car Loan can be sanctioned as
a) Term Loan b) Overdraft
c) Either a or b d) None of the above
95 The offer of PACL to the pre-selected customers will be valid for __________days
a) 30 b) 60
c) 45 d) 90
96 Under Contactless lending platform (CLP) which of the following category of customer is
not eligible presently to avail a Car loan
a) Salaried customers b) Agriculturalist
c) Self-employed/Professional d) Businessman
97 The Contactless Lending Platform (CLP) for P-Segment borrowers is a digital platform
which is accessible through URL
a) www.psbloansin59minutes.com. b) www.vahan.nic.in
c) www.gov.psbloansin60minutes.com d) www.sbiloansin59minutes.com
98 Car Loan Journey on the CLP platform is passes through ________ stages.
a) Five b) Four
c) Three d) Two
99 The maximum time limit for sanction/ rejection by the bank selected by the
customer will be _______ days from the date of receipt of in-principle sanction in
CLP portal
a) 7 b) 10
c) 15 d) 30
Online PSB Loans Ltd, a Contactless lending platform for smooth sanctioning of personal
100 segment loan is developed by
a) IDRBT b) SIDBI
c) GITC d) NABARD
187
ANSWERS to MCQs - AUTO LOANS
1 B 2 B 3 C 4 C 5 C
6 B 7 C 8 C 9 A 10 D
11 B 12 A 13 A 14 A 15 B
16 D 17 A 18 B 19 A 20 D
21 C 22 C 23 C 24 A 25 C
26 C 27 C 28 D 29 D 30 B
31 C 32 A 33 D 34 B 35 B
36 A 37 D 38 D 39 B 40 A
41 D 42 C 43 D 44 B 45 C
46 D 47 D 48 D 49 C 50 C
51 A 52 C 53 B 54 B 55 A
56 C 57 C 58 C 59 A 60 B
61 B 62 B 63 C 64 C 65 B
66 B 67 A 68 D 69 B 70 C
71 A 72 B 73 B 74 B 75 A
76 B 77 D 78 B 79 C 80 D
81 A 82 A 83 A 84 B 85 C
86 D 87 B 88 B 89 D 90 C
91 C 92 B 93 C 94 A 95 D
96 B 97 A 98 B 99 A 100 B
Back to Index page

188
MCQs – Education Loans
1 Education Loans are now sanctioned at _____?

a) Fixed Interest rates b) Floating Interest rates
c) Both Fixed & Floating Interest d) Floating Interest rates upto loan amount
rates depending upon the loan Rs. 4 lacs and at fixed rates above Rs.4
amount lacs
.2 Students below 18 years of age are
a) Not eligible for education loans b) Eligible for education loans but only with
their parents
c) Eligible for loans upto Rs.4 lacs d) Not eligible for loans for studies abroad
3 The Nodal Bank for implementing Central Government's Interest Subsidy
scheme for Education Loans in the country is
a) State Bank of India b) Bank of Baroda
c) Canara Bank d) Andhra Bank
4 The maximum time limit for conveying sanction/ rejection of an Education
Loan is...................from the date of receiving the application along with all
supporting documents.
5 As per Reserve Bank of India guidelines, for the purpose of reporting Priority
Sector Lending, education loans with outstanding upto. ……. (for studies in
both India and abroad will only be taken into consideration.
a) Rs.7.50 lacs b) Rs.4.50 lacs
c) Rs.15 lacs d) Rs.20 lacs
6 To be eligible for Subsidy under Interest Subsidy Scheme on Education Loan
for Economically Weaker Section (EWS)-CSIS, the annual gross parental/
family income of the applicant borrower should not be more than
c) Rs.10.00 lacs d) Rs.15 lacs
7 Ministry of HRD along with the Department of Financial Services, Government
of India has launched a common portal ................................ for students to
apply for education loans and to facilitate tracking and follow-up of the loan
a) Gyan Laxmi Portal b) Vara Laxmi Portal
c) Vidya Laxmi Portal d) Veera Laxmi Portal
8 CGFSEL stands for
a) Credit Guarantee Fund b) Credit Guarantee Fund Scheme for
Scheme for Small SME Entrepreneur Loans
Entrepreneur Loans
c) Credit Guarantee Fund d) Credit Guarantee Fund Scheme
Scheme for Secured for Education Loans
Entrepreneur Loans
9 What is the annual guarantee fee (AGF) under CGFSEL scheme
a) 0.75% p.a. of the limit b) 0.50% p.a. of the limit sanctioned
sanctioned
c) 0.50% p.a. of the outstanding d) 0.75% p.a. of the outstanding amount
amount
189
10 The CGFSEL will provide guarantee cover to the extent of

a) 100% of the amount in default b) 75% of the amount in default
c) 25% of amount in default d) 50% of the amount in default
11 What is the maximum period to invoke the guarantee in respect of education
loans from the date of NPA in CGFSEL scheme
a) 1 year from the date of NPA b) 30 days from the date of NPA
c) 90 days from the date of NPA d) 270 days from the date of NPA
12 As a measure of de-risking the Education Loan portfolio, every effort must be
made that the students who are availing Education Loans _ should be
suitably covered by
a) Above Rs.10 lacs, Life b) Above Rs.7.50 lacs, Personal Accident
Insurance Policy Insurance Policy
c) Above Rs.7.50 lacs, Life d) Above Rs.10 lacs, Personal Accident
Insurance Policy Insurance Policy
13 Opinion Report on Co-Borrower to be compiled for loans above Rs.__ lac
wherever Co-Borrowers are taken
a) 4 Lacs b) 10 Lacs
c) 7.5 Lacs d) 20 lacs
14 In respect of the Education Loans to the wards of the staff members, which of
the following is not correct?
a) Repayment period is 240 b) Prior Administrative clearance is not
months necessary
c) No lien should be noted d) A mandate for deduction of the
against installment due from the
the PF balance of staff member salary/pension should be obtained
15 Risk Scoring Model (RSM) in case of Educational Loans should be followed
where the Loan amount is
a) Above Rs.4 lacs b) Above Rs.7.5 lacs
c) Above Rs.10 lacs d) All Loans irrespective of limit
16 Education Loans for Medical Courses abroad can be considered provided the
College/University is approved by ____ in addition to approval by such a
regulatory authority in that country
a) University Grants Commission b) Indian Medical Association
c) Indian Council of Medical d) Medical Council of India
Research
17 What is the maximum loan that can be sanctioned under SBI Student Loan
for studies in India (other than Medical courses)?
c) Rs. 40 lacs d) Rs. 1.50 lacs
for studies of MBBS/MD (Medical) in India?
for studies abroad?
a) Rs. 10 lacs b) Rs. 7.50 lacs
190
20 Margin required to be brought in by the borrower for Student Loans up to Rs.
4.00 Lac is ........and above Rs. 4.00 Lac is......for studies in India.
a) 5% and 15% b) 5% and 10%
c) 10% and 15% d) Nil and 5%
21 Margin required to be brought in by the borrower for Student Loans up to Rs.

4.00 Lac is ........and above Rs. 4.00 Lac is......for studies Abroad.
a) 5% and 15% b) Nil and 5%
c) 10% and 15% d) Nil and 15%
22 Purchase of Books/equipment/instruments/computer, etc. considered for
student loan should be capped at of tuition fees for other than Govt
institutions
a) 10% b) 20%
c) 5% d) 15%
23 Caution deposit /building fund/refundable deposit supported by Institution
bills/receipts the amount considered for student loan should not exceed ____
of the tuition fees for the entire course for other than Govt institutions
a) 10% b) 20%
c) 5% d) 15%
24 Cost of two-wheeler up to ___ can be included in the expenses considered
eligible for finance under student loan if secured by suitable third party
guarantee and/or tangible collateral security.
a) Rs.50000/- b) Rs.55000/-
c) Rs.60000/- d) Rs.75000/-
25 Which of these expenses are not covered under the project cost for Education
Loans for studies in India?
a) Cost of Computer/ Laptop b) Cost of Study Tour
c) Cost of a 2-wheeler (up to d) Living expenses (Excluding Hostel)
Rs.50,000)
26 Maximum repayment period for education loans is
a) 7 years inclusive of the course b) 15 years inclusive of the course period

period and moratorium & moratorium
c) 10 years inclusive of the d) 15 years exclusive of the course period
course period and moratorium & moratorium
27 What is the maximum moratorium period that is applicable to SBI Student
Loan Scheme?
a) 1 year after completion of the b) 6 months after getting the job
course
c) a) or b) whichever is earlier d) a) or b) whichever is later
28 For student-borrower/co-applicant/guarantor, CIBIL Score should be for
collateralized education loan is
a) -1 or more than 650 b) -1 or more than 685
c) NTC 101 to 200 or more than d) None of the above
591
29 For student-borrower/co-applicant/guarantor, CIBIL Score should be for non-
collateralized education loan is
a) -1 or more than 600 b) NTC 101 to 200 or more than 685
c) -1 or more than 591 d) None of the above
191
30 The second Credit Information Company (CIC) report for Education Loans
has to be taken for loans sanctioned ___________ for unsecured loans
a) Rs.10 lakhs and above b) Above Rs.4 lakhs
c) Above Rs.5 lakhs d) Rs.4 lakhs and above
31 What is the preliminary CIC report to be taken for Education loan applicants?
a) CIBIL b) CRIF High Mark
c) Equifax d) Experian
32 The second Credit Information Company (CIC) report for Education Loans has
to be taken from
a) CRISIL b) ICRA
c) EXPERIAN d) CRIF Highmark
33 Sanction of higher loan amount – SBI Student Loan, beyond the schemes &
other deviations, permission to be obtained from
a) DGM (B&O) b) CGM of Circle
c) GM Network d) AGM of Region
34 For higher loan limit in SBI Student Loan, the CGM of the Circle to approve
deviation on case-to-case basis, with a maximum cap of upto
c) Rs. 100 lacs d) No deviation is permitted
35 What is the Minimum amount of Education Loan for studies in India that can
be sanctioned to Persons of Indian Original (PIO)/Overseas Citizen of India
(OCI) under Student Loan Scheme?
a) Rs.4 lacs b) Rs.10 lacs
36 What is the Maximum amount of Education Loan for studies in India that can
be sanctioned to Persons of Indian Original (PIO)/Overseas Citizen of India
(OCI) under Student Loan Scheme?
37 In case of loans for studies abroad, a sum of ____ will be deposited, which
will be adjusted against the margin money / interest payable in respect of
Global Ed Advantage loan
a) Rs.15000/- b) Rs.20000/-
c) Rs.10000/- d) Rs.5000/-
38 Which of these is not a category of Institute/ University under our Scholar
Loan Scheme?
a) List A b) List B
c) List C d) List D
39 Maximum Loan amount that can be granted under Scholar Loan scheme is
a) Rs. 20 Lacs b) Rs. 30 Lacs
c) Rs. 50 Lacs d) Rs. 40 Lacs
40 What is the margin prescribed for Scholar Loans above Rs.4 lacs to Rs.7.50
lacs?
a) 5% b) 10%
c) 15% d) NIL
41 What is the margin prescribed for Scholar Loans above Rs 7.50 lacs?
a) 5% b) 10%
c) 15% d) NIL
192
42 The requirement of co-borrower has since been optional for all institutions
covered under ________. Choose the correct option.
a) List AA b) List AA & IIMs listed under list A
c) List AA and IITs listed under d) Co-borrower is mandatory for all
list A Education Loans
43 What is the concession in interest rates for girl children under SBI Scholar
Loan Scheme?
a) 0.25% b) 0.75%
c) 0.50% d) No concession is given
44 Scholar Loans cannot be granted jointly in the name of the student and his/her
a) Parent/ Guardian b) Spouse
c) Parents-in law d) Brother/ Sister
45 Minimum and maximum finance available under SBI Global Ed-vantage
scheme is
a) Rs.20 lacs and Rs.1.50 Crores b) Rs.4 lacs and Rs.1 Crore
c) Rs.7,50,001/- and Rs.1.50 d) Rs.10 lacs and Rs.1 Crore
Crores
46 What is the margin prescribed for Global Ed-vantage Loans above Rs 7.50
lacs and upto Rs.20 lacs?
a) 5% b) 10%
c) 15% d) NIL
47 What is the margin prescribed for Global Ed-vantage Loans above Rs 20
lacs?
a) 5% b) 10%
c) 15% d) NIL
48 What is the applicable processing fee for Global Ed-vantage Loans?
a) Rs. 10,000/- + applicable GST b) 1% of Loan Component
c) Rs. 15,000/- + applicable GST d) 1.5% of Loan Component
49 What is the maximum moratorium period that is applicable to SBI Global Ed-
vantage Loan Scheme?
a) 6 months after completion of b) 6 months after getting the job
the course
c) a) or b) whichever is earlier d) a) or b) whichever is later
50 What is the minimum Margin that has to be brought in at the time of each
disbursement under Global Ed-vantage Loan for loans upto 20 lacs?
a) 5% b) 10%
c) 15% d) 25%
51 In case of immovable collaterals accepted as collateral security, realizable
value should cover ______ in Global Ed-vantage Loans
a) 110% of the loan amount b) 100% of the loan amount
c) 110% of loan amount plus d) 100% of loan amount plus accrued
accrued interest during interest during moratorium
moratorium
52 Under Global Ed-vantage Loan, ___ as Contingent Expenses can be included
which can be disbursed by obtaining a simple declaration.
a) 10% b) 5%
c) 25% d) Contingent Expenses are not permitted
193
53 Courses run by which of these Institutions are eligible for loans under “SBI
Skill Loan” scheme
a) Industrial Training Institutes b) Polytechnics
(ITIs)
c) Training partners affiliated to d) All the above
National Skill Development
Corporation (NSDC)
54 Minimum and maximum finance available under “SBI Skill Loan” scheme is
_____.
a) Rs.5000 & Rs.100000 b) Rs.25000 & Rs.150000 respectively
respectively
c) Rs.10000 & Rs.100000 d) Rs.5000 & Rs.150000 respectively
respectively
55 Under 'SBI Skill Loan scheme' validation of course fee structure is required to
be done by the PBBU of the Circle concerned in case of Private Institutions,
for loan of ______
a) Rs.5000/- and above b) Rs.25000/- and above
c) Rs.50000/- and above d) Rs.100000/- and above
56 Which of these statements is not correct regarding “SBI Skill Loan” scheme?
a) Maximum repayment period is b) No Collateral Security or Third-Party
7 years Guarantee is required
c) No margin is required to be d) Loans under this scheme can be
brought in by the applicants sanctioned by all the branches
57 Takeover of Collateralized Education Loans with outstanding _______ both
for Studies in India and abroad is permissible.
a) Rs. 10 lacs and above b) More than Rs.10 lacs
c) Rs. 7.50 lacs and above d) More than Rs.7.50 lacs
58 Which of these statements is not correct regarding Takeover of Education

Loans?
a) Only Collateralized Loans can b) Loan should be fully disbursed
be taken over
c) Perfection of securities to be d) All are correct
completed within 60 days from
the date of disbursement
59 As per the instructions of Ministry of Education (MoE), Government of India, interest
subsidy on education loan under Central Sector Interest Subsidy (CSIS) Scheme has
been revised (since 01.04.2022)
a) 7.50 lacs to 12.00 lacs b) 7.50 lacs to 10.00 lacs
c) 4.00 lacs to 7.50 lacs d) 4.00 lacs to 10.00 lacs

60 Shaurya Education loan is introduced for
a) Studies at premier institutes in b) Studies in Abroad
India
c) Studies in India d) Both b & C
194
ANSWERS TO MCQs-Education Loans
1 B 2 B 3 C 4 A 5 D
6 A 7 C 8 D 9 C 10 A
11 A 12 C 13 C 14 A 15 B
16 D 17 B 18 C 19 B 20 D
21 D 22 B 23 A 24 A 25 D
26 D 27 C 28 C 29 B 30 B
31 A 32 D 33 B 34 B 35 B
36 C 37 D 38 D 39 C 40 A
41 D 42 B 43 D 44 D 45 C
46 C 47 B 48 A 49 A 50 B
51 C 52 B 53 D 54 D 55 C
56 D 57 B 58 D 59 B 60 D
Back to Index page
195
MCQs - Unsecured P Seg Loans
1 Under Xpress Credit scheme, Maximum Loan amount is --------------?

a) 12 times of NMI b) 12 times of Gross Salary
c) 24 times of NMI d) 24 times of Gross Salary
2 What is the maximum repayment period for Xpress Credit scheme
3 In case of Xpress Credit, no prepayment/ foreclosure charges will be applicable
if the account is closed from the proceeds of a new loan account opened under
the same scheme. Otherwise, a prepayment penalty of _____ will be charged for
closed before 3 years.
a) 1% b) 4%
c) 2% d) 3%
4 In Xpress credit scheme of personal loans as overdraft facility, minimum amount
of loan can be sanctioned up to:
a) 1 lac b) 5 lacs
c) 2 lacs d) No minimum ceiling
5 The term “FORCE NUMBER” will be used by
a) Army forces b) Central Armed Police Forces
c) Navy forces d) Air Force Staff
6 What is the EMI/NMI ratio applicable for loans under SBI Xpress Credit?
a) 50 b) 60
c) 40 d) None of the above
7 What is the EMI/NMI ratio applicable for loans under SBI Xpress Elite?
a) 50 b) 60
8 Our Bank has recently approved following modifications in Eligibility Criteria
under Xpress Credit to Salary Package customers of Govt./ Defense. Find out
the revised instruction.
a) Permanent employees b) Permanent employees
with a minimum of 1 year’s with a minimum of 2 year’s
length of service length of service
c) Salaried Employees with a d) Salaried Employees with a minimum
minimum service of 6 months service of 1 year are eligible
are eligible
9 Maximum Loan eligibility for under Online Purchase of Consumer Durables/
Merchandise at Amazon & Flipkart portals for purchase of Consumer Durables
at POS through use of SBI Debit Card is _______
a) 25000 b) 75000
c) 50000 d) 100000
10 Under Xpress Credit scheme, Maximum Loan amount for Teachers of
Government Aided Schools is ------?
a) 12 times of NMI b) 12 times of Gross Salary
c) 24 times of NMI d) 24 times of Gross Salary
11 How many CIC reports to be obtained in case of a loan amount above Rs.4.00
lacs in respect of Xpress credit loans?
a) 5 b) 4
c) 2 d) 3
196
12 The CIC Reports that needs to be obtained for Xpress Credit loans above Rs.4
lacs are
a) CIBIL b) CIBIL & CRIFHIGH MARK
c) CIBIL & Experian d) CIBIL & Equifax
13 Govt. Salary Package Applicants with the following minimum CIBIL Credit Vision
score will be eligible under Xpress Credit Scheme:
a) CIC score of above 591 b) CIC score of 650 and above
c) CIC score of 670 and above d) CIC score of above 685
14 For Other (including Salaried customers other than Govt. Salary Package
accounts) Applicants with the following minimum CIBIL Credit Vision score will
be eligible under Xpress Credit Scheme:
a) CIC score of above 591 b) CIC score of 650 and above
c) CIC score of 670 and above d) CIC score of above 685
15 A Public Sector Unit Officer is having gross monthly salary of more than Rs 2
lacs per month and maintains salary account with HDFC bank. Which variant of
personal loan is best suited for him/her.
a) Insta Credit b) Xpress Elite
c) Xpress Credit d) Xpress Lite
16 Xpress Elite is a Personal Loan variant for senior officials of the Central/ State
Governments, Defence Establishments, PSUs and Quasi Government Bodies
drawing a monthly net salary of above
a) Rs.1.00 lac b) Rs.2.00 lacs
c) Rs.3.00 lacs d) Rs.0.50 lacs
17 What is the maximum loan amount which can be sanctioned under Xpress Elite?
18 Bank has launched a personal loan product variant to cater to the personal needs
of our salary package customers earning a net monthly income between Rs.7000
& Rs.14,999. Can you name the product?
a) Xpress Elite b) SBI Insta Credit
c) Xpress Credit d) Xpress Lite
19 What is the EMI/NMI ratio applicable for loans under SBI Xpress Lite?
a) 50 b) 60
20 What is the Maximum loan which can be sanctioned under SBI Xpress Lite?
a) Rs.1,00,000 b) Rs.1,80,000
c) Rs.1,50,000 d) None of the above
21 What is the maximum repayment period applicable under SBI Xpress Lite?
22 Which variant of Xpress Credit given to non account holder
a) Xpress Elite b) Xpress Lite
c) Xpress Power d) Xpress Credit to Non-permanent
Employees
23 Rs.2,00,000/- Overdraft limit has been restricted to which variant under OD
facility in corporate salary package accounts
a) Silver b) Gold
c) Diamond d) Platinum
197
24 Overdraft under Corporate Salary Package has to be liquidated within a
maximum period of
25 What is the maximum overdraft limit under Platinum variant of Corporate Salary
Package
a) 40000 b) 75000
c) 150000 d) 200000
26 Overdraft facility for Salary Package account holders is limited to …. Months
salary
a) 2 months of net salary b) 2 months of gross salary
c) 6 months of net salary d) 6 months of gross salary
27 Pre-Approved Personal Loan, does not include the following loan:

a) Xpress Credit Loans b) Pension Loans
c) Top Up Xpress Credit Loan d) Deposit Loans
28 If any customer is eligible for two loan products i.e. PAXC and PAPL what will be
the process?
a) Customer can avail both the b) Customer can avail only one loan, which
loans simultaneously loan limit is lower
c) Customer can avail only one d) Both the loans will be cancelled
loan, which loan limit is higher
29 What is the maximum repayment allowed under Pre-approved Insta Top Up
Pension Loan (PAITPNL) scheme
30 No pre-payment/ foreclosure charges to be levied if the loan account is closed after the
completion of loan tenure of
a) 5 year b) 4 year
c) 2 year d) 3 Year
31 What is the validity period of offer made to preselected customer for SBI Insta
Credit?
32 What is the maximum loan amount which can be sanctioned under SBI Insta
Credit?
a) 1 lac b) 50% of Xpress Credit limit
c) 5 lacs d) 3 lacs
33 What is the facility and minimum loan amount that can be sanctioned under
PAPL scheme
a) Term Loan - 20,000 b) Demand Loan - 25,000
c) Term Loan - 50,000 d) None of the above
34 What is the maximum loan amount that can be sanctioned under PAPL scheme
a) 2.00 lacs b) 1.00 lac
c) 3.00 lacs d) 4.00 lacs
35 What is the facility and minimum loan amount that can be sanctioned under Pre-
approved Xpress Credit Loan (PAXCL) scheme
a) Term Loan - 20,000 b) Demand Loan - 25,000
c) Term Loan - 25,000 d) None of the above
198
36 What is the maximum loan amount that can be sanctioned under Pre-approved
Xpress Credit Loan (PAXCL) scheme
a) 2.00 lacs b) 15.00 lacs
37 What is the entry age for sanction of CSP Pre-approved Xpress Credit Loan
(PAXCL) scheme?
a) 18-58 years b) 18-56 years
c) 21-60 years d) 21-58 years
38 What is the maximum repayment allowed under Pre-approved Xpress Credit

Loan (PAXCL) scheme
39 What is the repayment period for pensioners and family pensioners, if the age of
the pensioner is below 72 years at the time of sanction
40 What is the maximum Pension Loan that can be sanctioned under Pension Loan
Scheme to Pensioners?
41 What is the maximum Pension Loan that can be sanctioned under Pension Loan
Scheme to Family Pensioners?
42 What is the maximum age within which Pension Loan can be sanctioned under
Pension Loan Scheme?
43 What is the maximum age within which Pension Loan has to be closed under
Pension Loan Scheme?
44 What is the maximum cap on loan amount for a pensioner with an age of 72 years
a) 18 months’ pension with a b) 18 months’ pension with a ceiling of
ceiling of Rs.7.50 lacs Rs.12.00 lacs
c) 18 months’ pension with a d) 18 months’ pension with a ceiling of
ceiling of Rs.14.00 lacs Rs.10.00 lacs
45 Under JAI JAWAN Pension Loan scheme, what is the loan amount stipulated for
family pensioners.
a) Rs.5.00 lacs b) Family pensioners are not eligible
46 EMI/NMP (Equated Monthly Instalment/ Net Monthly Pension) should not exceed
____ % in case of Pension Loan
a) Regular Pensions 50%, Family b) Regular Pensions 50%, Family Pensions
Pensions 25% 50%
c) Regular Pensions 50%, Family d) Regular Pensions 50%, Family Pensions
Pensions 60% 33%
199
47 EMI / NMI ratio for Xpress credit Diamond variant customers
a) 55% b) 50%
c) 60% d) 65%
48 There should not be more than __ Pension Loans at a time against 1 PPO
a) 1 b) 2
c) 3 d) 4
49 What is the maximum loan amount that can be sanctioned under Pre-approved
Pension Loan (PAPNL) scheme
a) 2.00 lacs b) 8.00 lacs
50 What is the maximum loan amount that can be sanctioned under Pre-
approved Insta Top Up Pension Loan (PAITPNL) scheme
a) 2.00 lacs b) 2.80 lacs
➢ Two new variants Real Time Xpress Credit & Real Time Xpress Elite.
➢ Xpress credit Diamond variant customers have EMI/NMI ratio of 55%
➢ Xpress credit Elite Platinum customers have EMI/NMI ratio of 65%
➢ No pre-payment/ foreclosure charges to be levied if the loan account
is closed after the completion of loan tenure of 3 years.
➢ In case of Defence customers, 100% waiver of prepayment/
foreclosure charges to be applicable irrespective of the loan tenure.
➢ However, Foreclosure charges/ PrePayment penalty @ 3% on
prepaid amount to be levied in case of all takeover cases by other
banks, irrespective of the tenure (including Defence customers).
ANSWERS TO MCQs-Unsecured P Seg Loans
1 C 2 A 3 D 4 B 5 B
6 A 7 B 8 C 9 D 10 C
11 C 12 C 13 B 14 C 15 B
16 A 17 B 18 D 19 C 20 B
21 D 22 A 23 D 24 D 25 D
26 A 27 D 28 C 29 C 30 D
31 A 32 D 33 B 34 A 35 C
36 B 37 B 38 D 39 B 40 C
41 D 42 D 43 C 44 C 45 B
46 D 47 A 48 B 49 C 50 B
Back to Index page
200
MCQs – Misc P Seg Loans

1 Personal Gold Loans cannot be given against
a) Mangal Sutra b) Bracelet
c) Specially minted gold coins sold by d) 24 carat Gold Bars
SBI
2 Maximum Personal Gold Loans that can be sanctioned to an individual in the same
CIF?
a) 1 b) 2
c) 3 d) No restrictions as the loan is fully secured
3 Gold loan can be given for specially minted gold coin(s) sold by Bank. What is the
maximum permissible weight per customer?
a) 30 grams b) 40 grams
c) 50 grams d) 60 grams
4 What is the minimum age for sanction of Gold Loan under SBI Personal Gold Loan
Scheme?
5 What are the Minimum and Maximum loan amounts that can be sanctioned under
SBI Personal Gold Loan Scheme?
a) Rs.10,000 and Rs.10 lacs b) Rs.10,000 and Rs.15 lacs
c) Rs.20,000 and Rs.50 lacs d) Rs.20,000 and Rs.15 lacs
6 What is the maximum repayment period under Personal Gold Loan Scheme?
a) 12 months – Interest & Principal b) 24 EMIs
can be paid at the end of the tenor
c) 36 EMIs d) 36 months – Monthly interest to be
serviced
7 Which of these Gold Loan schemes has the maximum repayment period of 12
months?
a) SBI Personal Gold Loan b) SBI Personal Liquid Gold Loan
c) SBI Gold Loan (Bullet Repayment) d) SBI Gold Loan Lite
8 For Staff Gold loan Interest rate ?
a) interest rate is 0.35 % above 6- b) interest rate is 1 % above the prevailing
months MCLR interest rate payable to public for 60
months TDR
c) interest rate is 0.50% above 1-year d) No such scheme is available
MCLR
9 What is the margin to be maintained under SBI Personal Gold Loan Scheme?
a) 10% b) 20%
c) 25% d) 35%
10 What is the repayment period under advance to staff against Gold (Demand Loan)?
11 Which department in the Bank advises the Market Value and Advance value in
respect of the gold loans?
a) PBBU Department b) Precious Metals Department
c) GITC Department d) Banking Operations Department
12 What is the maximum repayment period permitted for staff gold loans, sanctioned
for the purpose of education/land or building purchase/medical expenses?
201
13 Which of the following is not the accepted method in verifying genuineness and
purity of gold ornaments?
a) Touch Stone Method b) Nitric Acid Test Method
c) Specific Gravity Test Method d) Weighing method
14 Notice under Section has to be served to defaulting borrower before initiation
auction in Gold Loans.
a) 167 of Indian Contract Act b) 176 of Indian Contract Act
c) 167 of N.I. Act d) 176 of N.I. Act
15 Interest on the account of deceased Gold Loan Borrower to be charged at
Rate
a) No interest to be charged from date b) SB rate of interest to be charged in Gold
of death of borrower loan of deceased borrower
c) Interest at contracted rate to be d) Interest at 1 year MCLR rate to be
charged charged
16 Insurance for the Gold Retention Limit of the branch will be obtained by
department at every year.
st
a) PPBU, 1 July every year b) PPBU, 1st March every year
c) Precious Metal Department, 1st d) Banking Operations Department,1st July
July every year every year
17 Insurance of gold ornaments against which the Bank has sanctioned loan is to be
arranged. The insurance cost is borne by ______.
a) Borrower b) Bank
c) Borrower & Bank in 50-50 ratio d) It is optional
18 What is the periodicity for verification of PER Segment Gold Loan Ornaments at
the branches?
a) Monthly by officer other than joint b) Quarterly by officer other than joint
custodian custodian
c) Half Yearly by officer other than d) Yearly by officer other than joint
joint custodian custodian
19 Who is responsible for ensuring genuineness and purity of gold ornaments?
a) Cash Officer/Award Cash Officer b) Joint Custodians
c) Field Officer & Cash Officer d) Branch Manager & Cash Officer
20 Who would be initialing in Gold Loan Ledger?
a) Borrower and Cash Officer b) Only Borrower
c) Two authorised officers in whose d) Borrower, Joint Custodians and Branch
joint custody are to be held Manager
21 Whether part delivery of ornaments can be given to borrower?
a) No, the loan account has to be fully b) Yes, if he comes for second Gold Loan
closed.
c) Yes, provided he furnishes fixed d) Yes, provided the advance value of the
deposit to cover advance value remaining ornaments fully cover the
outstanding in account.
22 For conducting auction of Gold ornaments, prior approval of _ is required
a) AGM - RBO b) DGM (B&O)
c) Branch Manager d) No prior approval is required
202
23 What is the LTV ratio stipulated by RBI in respect of Personal Gold Loans?
a) 65% b) 75%
c) 80% d) 85%
24 How is LTV ratio calculated for Gold Loans?
a) LTV ratio has to be calculated on b) LTV ratio has to be computed against
the total outstanding of the loan current value of the gold
account
c) LTV ratio has to be calculated on d) Options b & c are correct.
the total outstanding of the loan a/c
including accrued interest
25 When should the branch send the first notice, in case of LTV breach?
a) On the 7th day of LTV breach b) On the day of LTV breach
c) On the 15th day of LTV breach d) On the 21st day of LTV breach
26 In case of breach of LTV ratio, what is the stipulation for issue of third notice to
the Gold loan borrower?
a) After 30 days from the 1st Notice b) After 15 days from the 1st Notice
c) After 10 days from the 2nd notice d) After 10 days from the 2nd Notice
27 Which branch can sanction Online Loan against Shares?
a) All branches b) All Personal Banking Branches
c) Personal Banking Branch Delhi d) Specialised Securities Finance Branch
Worli
28 What is the maximum loan sanctioned against Online Loan against Shares which
are in physical format?
a) Rs. 5 lacs b) Rs.10 lacs
29 What is the margin for Online Loan against Shares?
a) 10% b) 25%
c) 40% d) 50%
30 What is the Maximum loan sanctioned against SBI Mutual Fund, when the units are
in Demat Format?
a) Rs.1,00,000/- b) Rs.5,00,000/-
c) Rs.10,00,000/- d) Rs.20,00,000/-
31 What is the margin to be maintained while sanctioning loan against NSCs/KVPs?
a) 30% of FV + accrued interest b) 40% of FV + accrued interest
c) 45% of FV + accrued interest d) 50% of FV + accrued interest
32 The particulars of the life insurance policy have to be entered in ___ at the time of
sanction of loan.
a) Security Ledger b) Security Register
c) Miscellaneous Securities Register d) Branch Document Register
33 What type of charge do we have in case of Loan against Life Insurance Policy
a) Pledge on Policy b) Assignment on Policy
c) Lien on Policy d) Hypothecation on Policy
34 How the loan eligibility will be calculated in respect of life insurance policies?
a) Bank calculates eligibility based on b) Insurance company will provide the value
the premium paid amount called surrender value
c) Loan eligibility will be calculated d) Based on IRDAI’s advance value
based on the NAV of the policy published at monthly intervals
203
35 What is the minimum margin to be maintained while sanctioning loan against
Insurance Policies (Tenor : upto 12 months)
a) 5% of surrender value b) 10% of surrender value
c) 15% of surrender value d) 20% of surrender value
36 What is the minimum age limit for availing advance against RBI Relief Fund?
a) Individuals with 18 years of age b) Individuals with 19 years of age
c) Individuals with 20 years of age d) Individuals with 21 years of age
37 What is the minimum loan amount sanctioned under Sovereign Gold Bonds
Scheme?
a) Rs.10,000/- b) Rs.20,000/-
c) Rs.50,000/- d) Rs.1,00,000/-
38 Please expand OPAS
a) Online Project Approval System b) Online Project Approved System
c) Online Project Assessment System d) Online Paper Approval System
39 What is the prescribed Margin for Loan against Bank’s Time Deposits in case the
residual tenure of Time Deposit is up to 36 months, as on the date of availing of
loan?
a) NIL b) 5%
c) 10% d) 15%
40 As per recent circular instructions, how many Demand loans can be sanctioned
against one Time Deposit?
a) 1 b) 2
c) 3 d) With the approval of AGM for loans
exceeding 3
Answers to MCQs – Misc P Seg Loans
1 D 2 C 3 C 4 A 5 C
6 C 7 C 8 B 9 A 10 C
11 B 12 D 13 D 14 B 15 C
16 D 17 B 18 B 19 C 20 C
21 D 22 C 23 B 24 D 25 B
26 A 27 D 28 B 29 D 30 D
31 B 32 C 33 B 34 B 35 C
36 D 37 B 38 A 39 B 40 A
204
HOUSING LOAN
Sl Name of the Scheme Eligibility Amount of Loan Margin.
No. Rationale/ Objective/
Purpose
1 (Loans upto Rs. 35 Individuals including AgriculturistsRepair & renovation –
lacs, overall cost Rs.45 having steady income minimum Age maximum Rs.10 lacs.
lacs in metro & others 18 yrs& maximum 70 yrs by which the Amount of loan is
Rs.25 lacs, overall cost decided on EMI/ NMI
loan should be fully repaid. 2 loans can LTV-Loan to
RATIO →
Rs.30 lacs exc Staff HL, be given to an individual if he has the
NAI <=1.2 – 20%,>1.2 to
Value Ratio –Loan
Repairing Rs 10 lac in capacity to repay. If the family <=3- 30%,>3 to <=5- upto 30 lacs-
metro & Rs.6 lacs in member like spouse, children, parents,
55% 90%, Above Rs
other centres come siblings join as coborrower the age of
>5 to <=8- 60%, >8 to 30 lacs to 75 lacs
under Priority Sector the youngest coborrower to be <=10 - 80% and loan
Advance) considered to arrive at maximum loan65%,>10 -70% above
Servicing of interest is tenor. Salaried customer NAI 75 lacs –
mandatory irrespective >10 lacs and CIBIL 750 75%(Registration,
of moratorium period. Other variable income like overtime, & above, stamp duty &
EMI/NMI 75%
Interiors & furnishing bonus, allowances etc after deducting other document
Reimburse investment
can also be considered taxes, if any can be added. Expected from own source/loan charges can be
as part of project cost –
rental income from the proposed house from friends/ relatives/ included as a part
25% of Agreement to be purchased can also be employers for cons/ pur/ of project cost of
Value without any considered by the sanctioning authority repair during last 12 m dwelling unit not
ceiling. with a cap not exceeding NMI after subject to income & LTV exceeding Rs.10
deducting taxes.. eligibility. lacs
No home loan to Depreciation of Prop. Firm add – Eligible Income for arriving
promoter for purchasing average 3 yrs or current whichever is at the max loan will be
based on Form 16/ ITR for
flat in his own project less.
last 2 years for salaried
No loan for acquiring Borrowers can include family members customers and income
more than 2 houses in (spouse, children, parents, siblings) who
are not property owners as co-borrowers verification related due
the same project with approval from DGM(B&O). The Max diligence stipulated by
Loan tenor will be decided based on the Bank’s extant instructions is
age of the youngest co-borrower. to be followed.
Repayment /Interest Security Other features
Maximum loan tenor 30 EM of property acquired out of finance. No prepayment penalty. Penal
years subject to age 70 Take-over Norms interest on irregular loans – Limit
years. 1. Borrower should satisfy Rs.25000 – NIL, Above Rs.25000/- part
Interest rate – refer to the eligibility criteria for availing HL. EMI due no penal interest, if more than EMI
latest circular 2. Home/ Flat under construction 2% penal interest on irregular loan amount.
instructions. Interest rate also allowed if Provision of accepting liquid security
is linked to EBLR no undue delay in completion 100% of loan amount inlieu of mortgage of
effective 1st October 3. Regular servicing of installment house. Provision of accepting other
2019 and will be reset on &/or interest of existing loan, if due. immovable property inlieu of mortgage of
1st of every calender 4. Borrower possesses valid Title property acquired out of bank finance –
quarter. Switch over fee Doc. Realisable value 125% of the home loan –
Rs.1000 plus taxes for Permissible quantum of Finance for approval of AGM with valid reason, T&C
converting home loans Take over: Outstanding with other same as applicable for HL,
interest rate linked to Bank + prepayment penalty or present Agreement to mortgage to be obtained
Base realisable value (–) prescribed margin, 1. Income of family members (spouse,
rate/MCLR/SBAR/RLLR whichever is lower children, parents, siblings) can be added
to EBLR provided they join as coborrower/guarantor.
No home loan on fixed 2. If the proposed property is under
interest rate. construction and any EMI is maturing within
6 months, it can be ignored while computing
loan eligibility as per income.
Property insurance is also considered as a part of project cost. 4. Lower Int & Processing Charges 5. Int calculated on
daily reducing bal. 6. Transparency 7. Reset of EMI if 20% or more of the outstanding is paid in one instance. Again, reset
of EMI is allowed if there is a change in rate of interest is 1% or more as compared to sanction or last reset.8. Incentives
under IT Act. Staff Housing Loan: Loan: Max 90% of Project or Rs. 30 lacs (Sub-staff), Rs. 45 lacs (Clerk), Rs. 60 lacs
(Officers upto V) and Rs.80 lacs VI &above.. Repayment: 360 months Principal:interest 2:1, repayment upto Age 75 yrs..
205
NRI Home Loans
Name of the Scheme Rationale/ Objective/ Eligibility Amount of Loan
Purpose
NRI Home Loans Age over 18 yrs with steady source Min. loan Rs.3 lacs Max.
-Home loan to NRIs, PIOs & OCIs of income as per EMI/NMI or LTV
Purpuse – as applicable for home loans. Work experience 2 yrs in India or whichever is lower.
Repair, furnishing and other terms & abroad 2 yrs job contract for abroad
conditions as applicable for HL out of which 6 months already spent.
Margin Repayment /Interest Security
LTV – Sal. Repayment –30 yrs max 60 yrs age Security – EM of

loan upto Rs.75 lacs 80% ,>Rs.75 lacs – 75%, or retirement whichever is earlier. property acquired out of
Non sal loan upto Rs.75 lacs – 75%, AGM can relax age upto 70 yrs. bank finance
>Rs.75 lacs- 70%
Other features:
Execution of loan document based on POA is allowed. CIR – Sal & Non Sal – 2 reports, CIBIL & another
from concerned overseas credit information Co. HL Rs.50 lacs & above report of business entity from Dun &
Bradstreet information services P ltd. AGM may permit relaxation.
SBI REALTY
Name of the Scheme Rationale/ Eligibility Amount of Loan
Objective/ Purpose
SBI REALTY 1 Salaried customer& Non- Min.Rs.5 lacs & Max Rs.15 Cr.
Purchase of plot for construction of house. Salaried customers as well Non-Salaried borrowers will be
Plot situated in municipal area population (including NRIs) permitted for purchase of
1 lac & above Prior approval from CPC head is residential plots only from
required for application of Non- housing projects undertaken by
Circular Ref No: NBG/RE,H&HD- Salaried Borrowers Housing Boards,
HL/27/2022 – 23 dated 09.09.2022 Urban Development Bodies,
2. Tenor – 10 years, house to be Builders of National Repute and
constructed within 3 years, else Reputed Builders. Non-Salaried
amount has to be recalled (e- Borrowers
circular Sl 658/2022 – 23 dated Purchase of Plots from
09.09.2022) Borrower to submit Individual owners will not be
completion certificate within 3 permitted.
years. However, an extension of
24 moths over 36 months may be
given for deserving case by
General Manager
(NW)
LTV loan upto Rs.30 lacs- 75%, >30 lacs to Tenor – 10 years, house to be EM land. Interim guarantee to
Rs.75 lacs – 70% &>Rs.75 lacs – 60% constructed within 3 years from cover the intervening period
the first disbursement of the
loan, else amount has to be
recalled (e-circular Sl
256/2020-21 dated
05.06.2020). Borrower to
submit completion certificate
within 3 years.
Other features
Employees of Central/State/PSU is permitted to purchase plot in towns population 10000 to 1 lacs, max Rs.50
lacs GM can. permit purchase of plot outside municipal/ corporation/town, LTV restricted to 60%.
OD MAX GAIN
HL with overdraft with reducing D.P. Min. loan Rs.20 lacs & Max. Rs.3 Cr. After full disbursement & EM
created INB, Cheque book issued, however no ATM. Maxgain to TL allowed. TL to Maxgain allowed
provided outstanding min. Rs.20 lacs; Available only for Ready to Move-in Properties / Re-Sale
Properties – where the full limit can be disbursed in one tranche
Home Top up
206
Objective/ Purpose
Home Top up – HL customer after EM Min. NAI Rs.3 lacs. Conduct Category I – Loan Minimum: Rs.2
creation & taking possession of house. of the A/c is satisfactory. lacs, HL limit upto Rs.75 lacs 10% of
Category I – HL >Rs.30 lacs, repayment At any point of time not more HL limit, HL limit>Rs.75 lacs 15% of
<12 months, Realisable value 10% above than 2 loans. HL limit
sale deed. Max. Rs.50 lacs
Category II – Repayment - 12 months& Category II – Min. Rs.2 lacs, Max. No
more. ceiling.
Repayment /Interest Security Other feature

Repayment – Residual period of HL or 15 Extenstion of charge on Fresh valuation once in 3 years.
years whichever is higher. LTV - Loan already mortgageed property.
upto Rs.30 lacs – 90%, >Rs.30 lacs upto Extension of mortgage for
Rs.75 lacs – 80% & loan >Rs.75 lacs – Top-up loan upto Rs.5 lacs is
75% Incase of takeover with Top-up LTV not mandatory.
is 75%.
INSTA Home Top-up – Available online

Objective/ Purpose
Existing home loan customer. With OD Min. HL Rs.20 lacs with INB Loan - 5% of HL limit, Min. Rs.1
facility with reducing DP. facility Min. residual period of lac & Max. Rs.5 lacs. At any point
HL – 5 yrs of time only one. Second can be
Satisfactory track record 3 yrs or sanctioned after a gap of one
more, no instances of RG3 year and previous loan is closed
CIBIL 700
Loan tenor – If residual HL No extension of charge. Lead activated through system is
> 5yrs upto 10 yrs – 5yrs When residual of However, an undertaking from valid for 30 days Processing fee –
HL is >10 yrs – 10 yrs the borrower is obtained online Rs.2000 plus taxes
authorising the bank to hold the Fully automated, no manual
original title deed till liquidation intervention
of the loan.
Shaurya Flexi Navy Home Loan

Objective/ Purpose
Target Group: service personnel of 21-45 years of age; Term Loan only; Moratorium
Indian Navy covered under Defined Min Loan- Rs.10 Lakhs; period- 36 months;
Pension Benefit Scheme Max Loan- Rs.10 Cr; EMI/ Repayment schedule would be
Purpose: As per normal housing loan NMI setup as per extant instructions
; Scheme is NOT available for purchase Ratio for different income prescribed, under FlexiPay home
of plot of land and repair / renovation of ceilings stipulated; Min Loan loans.
an existing house / flat. Tenure-25 years, max loan
tenure- 30 years
YONO INSTA Home Top-up

Objective/ Purpose
Available off-line i.e. customer Min. HL Rs.10 lacs with INB Loan - 8% of HL limit, Min.
approaches RACPC/ Branch Either facility Min. residual period of Rs.0.50 lac & Max. Rs.8 lacs.
TL or OD HL – 5 yrs Only OD with reducing D.P
Satisfactory track record 1 yrs or At any point of time only one
NBG/ RE,H&HD-HL/56/2021 - 22 more, no instances of RG3 loan.
Date: Fri 28 Jan 2022 CIBIL 550
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Loan tenor – If residual HL No extension of charge.
> 5yrs upto 10 yrs – 5yrs When However, an undertaking from
residual of HL is >10 yrs – 10 yrs the borrower is obtained online
authorising the bank to hold the
original title deed till liquidation of
the loan.
Other features
Lead activated through system is valid for 30 days Processing fee – Rs.2000 plus taxes
SMART Home Top-up

Objective/ Purpose
Available off-line i.e. customer Min. HL Rs.20 lacs HL borrower with 1-5 yrs
approaches RACPC/ Branch Either Min. residual period of HL – 5 yrs satisfactory repayment after
TL or OD Satisfactory track record 1 yr or moratorium Miin Rs.1 lac & Max
more, no instances of RG2 8% of HL limit with a cap Rs.8 lacs
NBG/ RE,H&HD-HL/56/2021 - 22 CIBIL 550 or more If satisfactory repayment is >5 yrs,
Date: Fri 28 Jan 2022 Min. Rs.1 lac and Max. 8% of HL limit
with a cap Rs.8 lacs
At any point of time only one loan.
Loan tenor – Residual periodof HL No extension of charge. Loan

or 20 yrs whichever is lower. agreement & arrangement letter
authorizing the bank to hold the
original title deed till liquidation of
the loan.
Other features
TAT – 1 day. No income document is required.No valuation. Provcessin g fee - Rs.2000 plus taxes
SBI-TRIBAL PLUS’ Home Loan

Purpose: In many Tribal/ Hilly areas granting of HL rendered difficult due to – No cadastral survey, No land Patta,
legal transfer from a tribal to non-tribal not possible and ownership of the land lies with the community chief of the
village, this scheme obviate the problems. Eligibility: 1. Individual with age 21 to 60 years 2. Permanent employee
of Central/ State Govt/ PSUs & corporates (corporate with min. staff 1000 & external rating BBB maintain salary
with us min 5 yrs service, subject to availability of check off & CIBIL score as per HL norms, if no check off salary
account is mandatory and CIBIL 700. For corporates CIBIL score 700 irrespective of check off facility. Professionals/
Self-employed/ businessmen/ Agriculturists with 5 yrs experience and having satisfactory deposit a/c with avg
balance Rs 10000 or Standard loan a/c both for last 2 yrs. Loan Amount : 36 NMIs for Employed, 2 NAIs for
Professionals, Self-employed, businessmen and agriculturists (average ITR of last 3 yrs). Laon amount- Rs.20
lacs for Central/ State/ PSU employees with check off facility, all other Rs.15 lacs. . Margin: 20%
(Construction/ purchase of new/ existing house/flat), 25% (Repairs/ renovation/ addition) Type of Loan: Term Loan.
Security: Third Party Guarantee of other employee or Group Guarantee, Lien on PF (may be waived by AGM if
check off), a life insurance policy for a sum equal to the loan amount which should be assigned by the Bank, liquids
(Salaried 30%, others 50%) in form of TDs, Life Policies, NSCs, KVPs, shares, Govt Promissory Notes, Other FDs,
Gold ornaments. (Liquids may be waived provided Borrower/ Guarantor offers of equitable mortgage of immovable
at other centre equal the value of loan). Disbursement: In phased manner (construction of house)/ one-time (out
right purchase). Repayment: EMIs not to exceed 15 years or remaining yrs of service (Salaried) or 60 yrs of age (others). Inspection: Half
yearly (SA), Monthly (NPA). Comprehensive Insurance in name of Borrower & Bank for the realisable value of the property.
Top-up under Tribal Plus – Existing borrower under Tribal plus having 2 yrs satisfactory track recod. Tenor – Co-terminus with existing
tribal plus HL. Loan amount – Max Rs.5 lacs subject to O/s in tribal plus plus Top-up not to exceed original HL limit. At any point of
time only one loan. Fresh lien/ assignment for total limit, fresh check off. All other norm as applicable for home loan under Tribal plus
scheme
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SBI Reverse Mortgage
Objective/ Purpose
SBI Reverse Mortgage – Loan for welfare Eligibility- Individuals over 60 Loan tenor – If age is >58/60 to
of senior citzens. Enable house owning years of age, if with spouse, 65 yrs- 20 yrs; Age >65 yrs to 70
senior citizen having inadequate income to spouse above 58 yrs. Self yrs – 20/15 yrs; Age above 70 yrs
meet the shortfall of income. (Circular No. occupied&self owned – 20/15/10 yrs as per choice of the
NBG/ RE,H&HD-HL/25/2021 – 21 dated unencumbered property only customer. Loan availment –
10.08.2021) qualifies for RML. Loan – 90% of Lumpsum amount - 50% of NPV
(NBG/RE, H&HD-HL/47/2021 – 22 dated realizable value of the property max. Rs.15 lacs, rest
08.12.2021) Min. Rs.3 lacs and Max. Rs.1.5 monthly/quarterly subject to
Cr. Loan amount includes review every 3 yrs with revaluation
interest till maturity. and only doward review of annuity
Max Loan amount can be up to is permitted in case of fall in value
Rs.2.00 Cr if the property is Within of the property.
the Municipal Corporation Areas of
NCR, Mumbai, Pune, Chennai,
Ahmedabad, Bengaluru and
Hyderabad Centre.
Customers can avail RML from the
place of the property which will be
mortgaged by customers for
availing loan.
No EMI. Borrower or legal heir EM of property. 2 TIR

& 2 Valuation irrespective of loan amount.
of the borrower shall be
Residual life of the property should be
provided with first right to settle atleast 25 yrs
the account otherwise from the
sale procced of the property.
Other features
Borrower continues to retain the house. In the absence of social security, RML serves as a partial substitute. Obtain
life certificate, marital status, balance confirmation and permamnent residence of the borrower every year. If
permanently moved from the house, bank will take possession of the house..
CRE Loan
If an individual owns two or more houses, singly or jointly then the exposure for third house onwards / purchase of
plot will be treated as CRE Home Loan. The maximum Number of houses/ flats/ residential plots will be restricted to
1 (ONE) under CRE Home Loan over and above the two houses / flats permissible under Home Loan scheme.
Maximum number of Home Loans in the name of an individual including the existing loans and the proposed one
will be restricted to 3 (THREE) Home Loans (excluding closed accounts) under Home Loan scheme in P- Segment.
Personal Loan Against Property ( P-LAP)

Objective/ Purpose
“Personal Loan Against Property ( Employes / Professionals and self employedindividulas , Businessman
P-LAP) – Secured Personal Loan to who are IT assesses and NRI who own residential property or
individual owners of residential house commercial property in his/her own name, spouse/ children/ parent
/flat and selected commercial /sibling provided that sanctioning authority is satisfied about the
properties for meeting their personal genuineness and steadiness of source of income and continuity of
need repayment capacity of the borrower.
(Circular No- NBG/RE, H&HD-HL/49/2021- Min Loan – Rs. 5.00 Lac
22 dated 17/12/2021) Max Loan – within the Municipal Corporation areas of NCR, Mumbai,
(Circular No- NBG/RE, H&HD- Pune, Chennai, Ahmedabad, Bangalore,
HL/26/2021-22 dated 10/08/2021) Hyderabad centres and other State Capitals: Rs. 7.5 Crore; Other BPR
centres- Rs. 2.00 crore and non BPR centres Rs. 1 crore.
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LTV norms: for loan up to Rs. 1 crore- Repayment / Loan EM of property acquired out of
65% and loan above Rs. 1 crore- 60%. Tenor – 5 to 15 years or the Bank finance. Assignement of
EMI/ NMI ratio: for customers with NAI eldest borrower attains the age rental receivable, wherever
>Rs. 3 lacs <= Rs. 5 lacs- 50%; >Rs.5 of 70 years , subject to available.Loan under PLAP to be
lacs <= Rs. 10 lacs- 55%; and >Rs. 10 condition of % of NMI from sanctioned at the Centre where
lacs- 60%. rented income or from salary/ the Property is located.
business/ profession income
Other features
Property should be non- encumbered, SARFAESI compliant and non- Agriculturalin the name of borrowers/ co
borrowers. CoBorrowers will be restricted to Spouse/ Parents /Siblings/ Children.
The property within Municipal limit, Metro and Urban centre or Rural & Semi urban centre are considered for P-
Lap with certain restrictions.
Loan under P-LAP to be sanctioned at the centre where the property is located. .
Earnest Money deposit (EMD scheme) - Withdrawn
SBI Home Loan (PAL)

Assessment of eligibility of the customer before finalizing property also
The processing cell will assess the loan eligibility on the basis of income details of the applicant. Only scrutiny of
property papers will be pending. All other documents prescribed for Home Loan, except property documents would
be collected from the applicant along with the application form. KYC formalities including visits to residence and
workplace, verification of income proof will be completed, CIBIL report will be verified. The PLAL will be valid for 3
months.
SBI Suraksha
Loan for funding 100 % of the SBI Life Premium
All Home Loan applicants opting for SBI Life cover under credit linked group policy are eligible and this facility is
available to new Home Loan accounts and to an existing Home Loan in case the customer now opts to avail SBI
Life cover. The purpose of the loan is to fund the premium of SBI Life under credit linked group policy. The Term,
ROI will be as per the linked HL. Extension of mortgage of Home Loan Property is not required. LTV and EMI/NMI
need not to be computed afresh. The debit of insurance premium will be permitted in the account even though the
account is classified as NPA with a view to keep the insurance policy in force
SBI Flexipay Home Loan

Objective/ Purpose
In wake of intense market competition & All salaried class having age Minimum Amount: 20 Lakh.
with view to meeting emerging market between 21 years to 45 years,
demand -To build in value added having 2 years’ experience. Maximum Amount: 1.2 times the
&Customer friendly features to our H loan quantum calculated as per
loans to offers higher quantum of loan in the normal EMI/NMI Ratio
case eligibility is constrained because of method, subject to stipulated LTV
lower income to salaried class customer. norms.
As applicable for normal HL Loan Tenor : Equitable mortgage of the property

Minimum- 25 years and Max- 30 to be acquired with the help of
years Repayment : Bank finance
During moratorium-
Interest to be paid. Next 3 years –
100 % of original EMI
Next 3 years -105 % of original EMI
Thereafter terminal EMI
Other features
Moratorium :
For ready to built Property – 36 months.
For under construction property- 36 months plus construction period subject to maximum 60 Months.
The product is available to salaried customers only and Type of loan is Term Loan only.
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SBI – Privilege & SBI Shaurya Home Loan
Objective/ Purpose
To the employees with pensionable job. Employees of Central / State Governments Loan Amount:
Additional 5 % EMI/NMI relaxation and (including PSBs, PSUs of Central Government, Min- Rs.10 lakhs
maximum repayment period is up to 75 and other individual(s) with pensionable service. and Max is Rs.10
years. SBI Shaurya Home Loan: Defense Personnel Cr
belonging to Army, Navy and Air force.
This scheme is for the customer who are
covered under the Defined Pension Benefit
scheme only and those who are cover under
NPS are not covered under this scheme.
LTV norms :LTV as per the normal HL Loan term : Equitable mortgage
EMI/ NMI ratio : Mimimum- 60 months of the property to be
Where age of eldest salaried borrower is and maximum 360 months or up to the age of 75 acquired with the
up to 45 years.. years (the age by which the loan should be fully help of
for customers with NAI repaid ) Moratorium : Bank finance
>Rs. 3 lacs <= Rs. 5 lacs- 55%; Where the age of the eldest salary holder is up to
>Rs.5 lacs <= Rs. 8 lacs- 65%; 55 years : Same as the HL
>Rs8 lacs <= Rs.10 lacs- 70%; and >Rs. Where the age of the eldest salary holder is above
10 lacs- 75%. 55 years : up to 18 months
Where age of eldest salaried borrower is Repayment :
above 45 years, the applicable EMI/NMI Where age of eldest salaried borrower is up to
up to retairement age will be as above and 45 years : As applicable to normal HL Where age
after retirement it will be 50 of eldest salaried borrower is above 45 years
%. During Moratorium
Maximum income from coborrowers/ :Interest to be serviced Up to the month of
Guarantors who are not Central/ State retirement :
Govt. PSU, Defence, Paramilitary [EMI as per applicable EMI/NMI ratio] X [Ratio of
employee is restricted up to 50 % of NMI. Loan Amount to Total Loan Eligibility]
After retirement :
Terminal EMI.
Other features
Higher loan eligibility under SBI Flexipaycan not be clubbed with this product.
Facility is only in Term Laon.
Home Loan to Non- Salaried Segment – Differential offerings

Objective/ Purpose
Exclusive scheme for Non-salaried class Professionals/ Self-Employed/ This scheme offers improved
to tap the potential available in this Businessmen who are over 18 EMI/NMI ratio for Non-salaried
Segment. Relaxation in EMI/NMI ratio years of age and the entities i.e., customers provided
available. Prop. , partnership firm or Pvt Ltd – i) Minimum Loan Amount is
company Should be in existence Rs. 20 lacs, ii) Minimum Net
for atleast last 3 years , earned net Annual Income is Rs. 3 lacs,
profit for last 2 years . and Minimum Risk Grade is 3
(on a scale of 1 to 10) under
Wherever the proposed House Bank’s Risk Scoring Model.
Property is acquired in joint names
of the Proprietor and the Minimum Amt : 50 000/-
Proprietary Firm, the firm should Maximum Amount : 50 Crore
be our existing borrower or a debt
free entity.
Repayment/ Loan Tenor: Maximum Equitable mortgage of the property

Additional Eligibility Criteria 30 years or up to the age of to be acquired with the help of
EMI/NMI Ratio 70 years of the eldest applicant, Bank finance,
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Up to 5% whichever
LTV ratio up to 65%; OR Liquid is earlier,
Collateral# of 7.50% of loan including moratorium Guarantee of the Firm if the
amount or IMGC Mortgage period, if any. property is jointly owned by the
Firm and the individual.
Guarantee cover for
loan amount
Above 5% and LTV ratio up to 60%; OR Liquid
up to 10% collateral of 15% of loan amount
or IMGC Mortgage Guarantee
cover for loan amount + Liquid
Collateral of
7.50% of loan amount *
Above 10% and LTV ratio up to 50%; OR Liquid
up to 15%. collateral of 25% of loan amount
or IMGC Default Guarantee
cover for loan amount + Liquid
Collateral of 15% of
loan amount
Other features
The proposed house property may be acquired either in the sole names of individuals or jointly in the name of
the Individuals and their Proprietorship firms, subject to the condition that the share of Individual applicants in the
proposed property is not less than 50%.
Type of loan :
Up to Rs. 20 lacs – Only Term Loan Above Rs. 20 lacs to Rs. 3.00 Creore – TL or Maxgain both available.
Above- 3 crore- Only Term Loan.
SBI Wealth
Eligible Wealth Customers for Home Loan:
Existing Wealth Customers and New Wealth Customers (to be onboarded with minimum HL of Rs. 1.00 Cr. ) in
following categories: Salaried with pensionable job , Salaried without pensionable job , Non-Salaried Schemes
under differential offerings, Salaried with Pensionable job: If age is up to 45 yrs - Flexipay
or Privilege/Shaurya Home loan. If age above 45 years – Privilege/Shaurya Home loans, Salaried but Non-
pensionable: If age is up to 45 yrs. - Flexipay If age above 45 years – Normal Home loans
SBI CAR LOAN

Eligibility: 1. Age 21-70 years(at The time of sanction) – 75 years (at the time of closure of loan) 2. Salaried: Net
Monthly Income (NMI) >=25000 (NAI >=300000/-) Income from other sources like Bank Interest/Dividend/Rent can
be added. Self-employed, Professionals, Proprietor / Partner and Businessmen: Net Profit or Gross Taxable
income of Rs. 3,00,000/- p.a. Income from other sources like Bank Interest/Dividend/Rent can be added.
Agriculturists – NAI of Rs 4.00 lakhs and above& other income conditions apply. Loan Amount: Minimum Rs 1
lakhs. Maximum Salaried -48 NMI or 4 NAI, Self-employed, professionals and businessman – 4 times the Net Profit
or Gross Taxable Income, Agriculturists – 3 NAI. EMI/NMI %- NAI up to Rs 5 lakhs – 50 %, NAI > Rs 5 lakhs – 60
%, NAI >Rs 10 Lakhs – 65%. Wherever, the income of the spouse, father, mother, brother, sister (anyone, max no.
of borrowers 2) is included, person will join as co-borrower. Project costs include ex-showroom price road taxes,
insurance. The cost of accessories, extended warranty and total maintenance should not be included in project cost.
LTV&Margin: 85 % of on road price (Maximum up to 100 % of Ex-show room price. Margin - 15% on road price
(10% for Salary Package Customers) Rate of Interest – As per CIC Score and Term of Loan. CIC Scores- 650 for
all Govt employees having salary account with us; 700 for others including salaried customers. Repayment: 3
years -7 yearsTransfer of A/c: Standard Asset can be transferred from one branch to other on request of the
borrower. Place of Loan: Loan can be availed at place of permanent residence or work. For DSP/PMSP/IGSP
customers – Permanent place of residence/ place of posting/ place where salary account is maintained. Verification
of asset by the office at the center. Penal Interest: If the irregularity exceeds EMI or Instalment amount, for a period
of one month, then penal interest would be charged @ 2% per month over and above the applicable interest rate
on the overdue amount for the period of default. Processing fee: 0.25% + GST Min – 750+GST, Max – 7500+GST.
Security: 1. Hypo of vehicle and noting of hypo charge in the books of RTO. Credit Information Report – For loan
amount of above Rs 5.00 lakhs, two CIC Reports to be taken. ROI based on CIC Score of the customer or RSM
score in case customer is new to credit (NRC).
Documents: Applicable to All – PAN Card, Proof of Identity (OVD), Proof of Residence (OVD), Aadhaar Card if
available, Statement of Bank account for last 6 months (Relaxation in submission for Salary Package customers
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maintaining salary account with bank), Original Copy of Proforma Invoice (Quotation), Margin Money Receipt,
Passport size photographs 2 Nos Borrowers/ Guarantors. Additional Documents – For Salaried Customers –
Latest salary slip for one month, Form 16 or IT Returns for last 2 years (Waived for Salary Package Customers
maintaining Salary Account with Bank for minimum 12 months) For Self Employed/ Professionals/ Businessmen
– Business Address proof, Photocopy of certificate of practice,, Businessproof (GSTIN No, Shop Act), IT Returns
for last 2 years, TDS Certificate (Form 16A, if applicable) For Agriculturist – Document showing land holding,
Documents showing cropping pattern, Interview form for Agriculturists For Guarantor – Signature identification from
bankers of guarantor, copy of passport/ voter’s ID Card/ PAN card, proof of residence.
Insurance: Comprehensive, for market value or 10% above the loan amount outstanding, whichever is higher.
Bank’s interest as a hypothecate should be noted in the certificate & insurance policy. Pre-payment Penalty:NIL.
Foreclosure Charges: @2%+GST on theo-balance in case foreclose within 1 year from the date of disbursement of
loan. Inspection: Within 15 days from the date of disbursement. No periodical Inspection in case of Standard Asset.
Inspection must when there is default of 1 instalment. Twice a year for NPA a/cs. Maximum Number of Car Loans
– At any point of time, maximum 3 car loans should be outstanding in our books. Waiver of Opinion Report/ Asset
and Liabilities Statement – Compilation of Opinion Report/ Assets and Liabilities statements is waived for all car
loans up to Rs 20.00 lakhs if the CIC Score is 721 and above.
Incentives to Dealers/ DSEs/ALCs/Dealers Representatives: Dealers and DSEs – Maximum 2 % of loan
amount. Auto Loan Counsellors – 0.20 % of loan amount.
Flexi Pay Option for the first 6 months (upto 50% of regular EMI) if the loan is repayable in 36 months. Flexi
pay option in the form of 50% of regular EMI for the first 6 months and 75% of regular EMI for the next 6
months if the tenure of the loan is 60 months.
FOR SALARY PACKAGE ACCOUNTS, CORPORATE SALARY PACKAGE (CSP) ,SPECIAL SALARY
PACKAGE FOR EMPLOYEES OF SUBSIDIARIES & JVs OF SBI : Concession of 25 bps (0.25%) lower than
the prevailing Rate of Interest. NIL Processing fee.100% on On-Road Price of the Vehicle. (On-road price
includes Ex-show room price, Vehicle registration Charges, Road Tax & One Year Insurance). 100% finance
option will be available only if CIC score (CIBIL) of the applicant is 721 and above. The concessions will be valid
up to 31.03.2025, post which the same will be reviewed
Other features
• Transfer of A/c: Standard Asset can be transferred from one branch to other on request of the
borrower.
• Place of Loan: Loan can be availed at place of permanent residence or work. For DSP/PMSP/IGSP
customers – Permanent place of residence/ place of posting/ place where salary account is
maintained. Verification of asset by the office at the center
• For loan amount of above Rs 5.00 lakhs, two CIC Reports to be taken
• Inspection: Within 15 days from the date of disbursement. No periodical Inspection in case of Standard
Asset. Inspection must when there is default of 1 instalment. Twice a year for NPA a/cs
• Maximum Number of Car Loans – At any point of time, maximum 3 car loans should be outstanding in
our books.
• Waiver of Opinion Report/ Asset and Liabilities Statement – Compilation of Opinion Report/ Assets and
Liabilities statements is waived for all car loans up to Rs 20.00 lakhs if the CIC Score is 707 and above
• Incentives to Dealers/ DSEs/ALCs/Dealers Representatives: Dealers and DSEs – Maximum 2 % of
loan amount. Auto Loan Counsellors – 0.20 % of loan amount
• Insurance: Comprehensive, for market value or 10% above the loan amount outstanding, whichever is
higher. Bank’s interest as a hypothecate should be noted in the certificate & insurance policy
SBI GREEN CAR LOAN (For Electric Vehicle)

Term: Min 3 years, Max 8 years. Rate of Interest: Concession of 25 bps in applicable rate of interest for SBI Car
Loan. CIC Score should be min 700.
Age: 21-70 Years. (Loan is to be repaid by the age of 75 Years), CIC Score:For all category of customers:
Minimum 700, Margin: For all Customers: 10% of On-road price of vehicle.
NRI Car Loan

Eligibility: For Borrower & Guarantor Age: 21- 67 years (for both). Loan to be repaid before the borrower attains
the age of 70 yrs. For Borrower: Our Bank Customers: NRI fulfilling following conditions: ▪ Having valid Indian
passport ▪ Steady Source of Income ▪ Employed abroad for at least 2 years ▪ Holding a valid job contract/work
permit ▪ Having NRI account with SBI for at least 12 months with min. average balance of Rs. 50,000/- or New
Account with USD 5000/- or equivalent. Other Bank Customers: NRI fulfilling following conditions:
i. Having valid Indian passport; ii. Steady Source of Income; iii. Employed abroad for at least 2 years; iv. Holding
a valid job contract/work permit v. Having NRI account with other
Banks for last 24 months with a minimum balance/fixed deposits of Rs.50,000/-. vi. The borrower will open NRI
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account with SBI for repayment of EMIs vii. Guarantor: Resident Indian who is the guarantor to the loan should be
a close relative (the scope will be father, mother, pouse, son and daughter) of the NRI borrower. Minimum Income:
- For Borrower
Minimum NMI US $ 1000.00 or equivalent in other currencies Or, ` Minimum NAI US $ 12000.00 or equivalent in
other currencies. For Guarantor: No stipulation. Authorized Branches
The product will be launched in NRI intensive Branches. Loan Amount- Loan amount would be given on the basis
of Borrower‘s income. Minimum Rs 1 lakh, Maximum Loan Amount:
- 18 times of NMI (of Borrower) 1.5 times of NAI (of Borrower). Documents required - For NRI Borrower: ▪
Completed loan application. ▪ Declaration from (relation with guarantor) ▪ 3 passport size photos including those
in application. ▪ Passport copy with page containing visa stamping ▪ Copy of valid work permit ▪ Employment
contract copy (an English translation duly attested by employer/ consulate/ embassy/our foreign office if it is in any
other language) ▪ Latest salary certificate in original or proof of income in case of self- employed/professionals
e.g. IT Return ( of the residing country of NRI)/ Tax Residency Certificate ▪ Statement of overseas bank account
for the last twelve (12) months which reflect credit of salary, savings etc. ▪ Copy of identity card issued by the
employer ▪ Proof of residence (driving license/ utility bills etc.) ▪ Copy of Continuous Discharge Certificate in
respect of applicants employed in merchant navy. ▪ Power of Attorney, if applicable, in Bank‘s standard format
duly stamped and notarized/ attested by Indian Embassy/Consulate. ▪ Tri- merge/any other credit reports as
applicable should be submitted by the NRI. Score of less than 620 for Tri-merge are not eligible. If the country of
residence does not have a credit score system for individuals, the bank will rely on the income level and the
statement of assets & liabilities furnished by the NRI. For Guarantor: ▪ 2 passport size photographs of guarantor.
▪ Signature identification from bankers of guarantor. ▪ A copy of passport /voters’ ID card/PAN card. ▪ Proof of
residence. KYC should be done on both borrower and guarantor.
SBI Assured Car Loan

Eligibility:- Existing customers with unencumbered Fixed Deposits. Age: - Minimum age of the borrower: 18 Years.
Maximum: No stipulation. Income : Not stipulated. Income declared by applicant will be accepted. Loan amount is
based on the fixed deposit value. Loan Amount: - On-Road price of the vehicle. Minimum Rs. 1 Lakh; Max: 100%
of FD value. 5.
EMI/NMI & Risk Scoring Model: Not Applicable 6. LTV, Margin & Processing fee: - NIL
Parameters viz Purpose, Rate of Interest, Loan Term, Pre-sanction survey, Post sanction inspection will be
applicable; as in SBI Car Loan Scheme. The car loan under the scheme will be sanctioned to the customer having
TDR/STDR in his/her own name. Deposit in joint names with only two persons will be accepted. In case of joint
deposit, one will be primary borrower and other will be co-borrower. Third party TDRs/STDRs will not be accepted.
Documents necessary for creation of lien to be obtained. (b) During continuation of car loan, partial withdrawal of
TDR will not be allowed. Forfeiture of the Deposit may be permitted for liquidation of the entire loan, at the request
of the borrower. (c) CIC scrutiny to be conducted to ensure that the applicant is not a defaulter to Banks/Financial
Institutions. Applicants with CIC scores less than 606 and those in -1, 0 1 to 5 categories will also be eligible.
PACKAGE FOR EMPLOYEES OF SUBSIDIARIES & JVs OF SBI : Concession of 25 bps (0.25%) lower than the
prevailing Rate of Interest. NIL Processing fee. The concessions will be valid up to 31.03.2025, post which the
same will be reviewed
SBI Loyalty Car Loan (For Existing Home Loan Borrowers)

Eligibility: - Individuals including joint borrowers who have a) Availed the housing loan from SBI, b) Satisfactorily
serviced the loan for at least one year after the moratorium period,
c) Taken the possession of the house d) Created valid equitable mortgage and e) Maintained security margin of
at least 15% for purchase/construction of plot/house. f) Completed all terms and conditions regarding sanction of
housing loan. Income: - Minimum Net Annual Income of the borrower will be Rs 2.00 Lacs. Loan Amount: - a) 75%
of present market value of the house property less present outstanding in the Home Loan account and Home
Equity, if any. b) EMI/NMI ratio will be as per respective car loan scheme. c) Ex-show Room price of the vehicle.
The permissible loan amount will be the lowest of the above 3. LTV & Margin: - Maximum up to 100% of Ex-
showroom price. Margin: Nil Processing fee: - 0.25% of the loan amount Minimum: Rs. 500/- + GST; Maximum
Rs. 5000/- + GST. Rate of Interest: - 5 bps concession in interest applicable to SBI Car Loan. Security: - In addition
to Hypothecation of vehicle, i) Additionally, the equitable mortgage taken, for the housing loan should be extended
to cover the new car loan. Fresh Search Report has to be obtained from date of last search report. ii) However, in
view of high stamp duty in some of the states, extension of mortgage will not be mandatory for car loan up to Rs.
10.00 Lakhs. However, letter of lien on title deed needs to be obtained. iii) The title of the mortgaged property will
be released only after the closure of Car Loan under the scheme irrespective of the quantum of car loan.
Parameters viz Purpose, Age, EMI/NMI, Loan Term, Risk Scoring Model, Pre-sanction survey, Post sanction
inspection will be applicable; as in SBI Car Loan Scheme. No loan will be considered if the CIC Score is less than
650.
214
PACKAGE FOR EMPLOYEES OF SUBSIDIARIES & JVs OF SBI : Concession of 25 bps (0.25%) lower than
the prevailing Rate of Interest. NIL Processing fee.100% on On-Road Price of the Vehicle. (On-road price
includes Ex-show room price, Vehicle registration Charges, Road Tax & One Year Insurance). 100% finance
option will be available only if CIC score (CIBIL) of the applicant is 721 and above. The concessions will be valid
up to 31.03.2025, post which the same will be reviewed.
CERTIFIED PRE-OWNED CAR LOANS

Purpose: For purchase of New Car as per SBI Car loan Scheme. Eligibility: Bank’s existing salaried customers
will be pre-selected based on following eligibility criteira : Account should be opened with salary package product
codes. Employees of Government. PSUs & AA & better rated corporate borrowers of CAG/CCG. Existing Gold &
Platinum Corporate Salary Package account holders of the Corporates having more than 50 salary accounts with
us. At leaset one credit of Rs 25,000/- p.m. in salary account during 5 of the last 6 months, excluding cash deposit
and system credit . Total salary credit summation of Rs 3.00 lakhs during last 12 months. There should be salary
credit in the immediate last month. Age of the customer should be minimum 21 years and max is 57 years. Account
should be in in single name. CIBIL (V3) cut-off score of 700 and New to Credit Score -1(151- 200). Resident status
of the customer should be Resident Indian. None of the existing loan accounts under the same CIF should be in
SMA 2 and/or NPA category. Validity of offer : The offer to the pre-selected customer will be valid for 30 days.
Reach out to Customers: Through YONO, CRM, Sending SMS and by personal contact and lead conversion.
Term of the Loan is 3-7 years. Minimum loan amount is Rs.1 Lakh and Maximum is Rs.5 Cr. Max loan amount is
48 times the NMI. RSM Score must be 46 and above
Pre-Approved Car Loan (PACL)
Purpose: For purchase of New Car as per SBI Car loan Scheme. Eligibility: Bank’s existing salaried customers
will be pre-selected based on following eligibility criteira : Account should be opened with salary package product
codes. Employees of Government. PSUs & AA & better rated corporate borrowers of CAG/CCG. Existing Gold &
Platinum Corporate Salary Package account holders of the Corporates having more than 50 salary accounts with
us. At leaset one credit of Rs 25,000/- p.m. in salary account during 5 of the last 6 months, excluding cash deposit
and system credit . Total salary credit summation of Rs 3.00 lakhs during last 12 months. There should be salary
credit in the immediate last month. Age of the customer should be minimum 21 years and max is 57 years. Account
should be in in single name. CIBIL (V3) cut-off score of 700 and New to Credit Score -1(151- 200). Resident status
of the customer should be Resident Indian. None of the existing loan accounts under the same CIF should be in
SMA 2 and/or NPA category. Validity of offer : The offer to the pre-selected customer will be valid for 30 days.
Reach out to Customers: Through YONO, CRM, Sending SMS and by personal contact and lead conversion.
Term of the Loan is 3-7 years. Minimum loan amount is Rs.1 Lakh and Maximum is Rs.5 Cr. Max loan amount is
48 times the NMI. RSM Score must be 46 and above.
HIGH VALUE SUPER BIKE LOAN
Purpose: - For purchase of super bikes. Age: - 21-57 Years (Loan must be fully repaid before the borrower
completing the age of 60 years) Eligible customers : Existing and New to Bank customers (individual applicants),
of under noted categories: 1. Salaried (including short commissioned officers in defense establishments) 2.
Pensioners 3. Self employed Professionals, Proprietor, Partner and other IT assesses including businessmen &
traders. 4. Persons engaged in Agriculture and Allied activities. Minimum Income Criteria:
I. Salaried: Net Annual Income of applicant and/or co-applicant if any, together should be ₹ 3.00 Lakhs and above.
II. Pensioners: Net Annual Income of applicant and/or co-applicant if any, together should be ₹ 3.00 Lakhs and
above. III. Self-employed Professionals, Proprietor, Partner, and other IT assesses including businessmen &
traders: Net Profit or Gross Taxable income of . 3.00 Lacs p.a. (income ₹ of co-applicant can be clubbed together
for Self-employed, Professionals and Businessmen) as per ITR. IV. Agriculturists: Net annual income of applicant
and/or co applicant together to be ₹.4 Lacs. Loan Amount: - Rs.1.50 Lakhs – Rs. 25 Lakhs EMI/NMI: - Up to 50%
for all applicants. LTV: - 85 % of Ex-showroom
Price Margin: - 15% of ex-showroom cost of the vehicle. Processing fee: - 2% of the loan amount; maximum Rs.
10000/-. Term: - Upto 48 Months or before the borrower completing 60 Years of Age, whichever is earlier. .
Parameters viz. Eligibility, Pre-sanction survey, Post sanction inspection, Authorized branches will be applicable;
as in SBI Car Loan Scheme FOR SALARY PACKAGE ACCOUNTS, CORPORATE SALARY PACKAGE (CSP)
,SPECIAL SALARY PACKAGE FOR EMPLOYEES OF SUBSIDIARIES & JVs OF SBI : Concession of 25 bps
(0.25%) lower than the prevailing Rate of Interest. The concessions will be valid up to 31.03.2025, post which
the same will be reviewed.
215
TWO-WHEELER LOAN SCHEME:
Purpose: Purchase of Two-wheelers.
Eligibility: 1. Salaried customers of following categories –
a. Existing salary package customer of our bank.
b. Existing salaried customer of our bank and New to Bank customer.
2. Professional, Self-employed and other IT assesses.
3. Persons engaged in Agriculture and Allied activities Age: - 21-57 years, at the time of sanction of loan Income:
- Net Monthly Income (NMI) >=Rs. 12500/- Net Annual Income (NAI)>= Rs. 150000/-
Loan Amount: - Minimum: Rs. 20,000/- Maximum: Rs. 3.00 Lakhs.
EMI/NMI: - Up to 50% for all applicants and upto 60% for existing salary package customers of SBI.
LTV: - 85 % of On-road Price Margin: - 15% of on-road price
Processing fee: - 2 % + Applicable GST; Min: Rs 1000/ +GST. Term: -36 to 48 months before borrower attaining
60 years of age. Risk Scoring Model: Applicable Security: - Hypothecation of vehicle. Pre-sanction/Post Sanction:
Applicable (Please refer General Instructions
Xpress Credit
Objective/ Purpose
Xpress Credit Employees of: Central and State TL: Rs. 0.25 lacs to 20 lacs OD:
Xpress Credit Loans are general purpose Government, Defense& Rs. 5 lacs to 20 lacs Maximum
loans and can be sanctioned for any Paramilitary Forces,Quasi- limit for Diamond Salary
legitimate personal purpose without Government, Central PSUs & profit- Package Customers: Rs.30
asking for evidence of end use of funds. making State PSUs, Educational Lakhs
Institutions of National Repute All platinum salary package
(Master Circular 28.02.2021) (Institutions under SBI Scholar customers (NMI+.Rs.1.00
(NBG/PBU/PL-XPRESS/2/2022 - 23 Loan Scheme), Govt and aided Lakhs) should be offered
Date: Wed 13 Apr 2022) schools, Corporates. Xpress Elite only.
Employee: Permanent employees
with a minimum of 1 year’s length of EMI/ NMI: <=50% for Silver &
service. 6-month service in case of Gold;<=55%for Diamond
defense and govt. salary package. variants
Min CIBIL: Max. amt of loan: 24 times NMI
650 for Govt and Defense
employees
670 for others.
Min. salary: Rs. 15,000 NMI
72 m or residual service period, No collateral security or third- Max. 2 loans allowed per CIF. The
whichever is less. party guarantee required. saving account should be under
For CSP other than Govt and Defense, CSP and ERC fed in CIF.
loan should be repaid by 60 yrs age. Disbursement to be made into
Interest rate lined to MCLR but fixed for savings account with same CIF.
tenure of loan.
Interest concession of 0.50% subject to
max. 1% overall for:
1. Loan above 10 lacs
2. Platinum salary package
Ratna PSE employee
Xpress Elite
Objective/ Purpose
Employer and employee class as Above category of employees TL: Rs. 3 lacs to 35 lacs
above. with Minimum NMI Rs. 1 lac and OD: Rs. 3 lacs to 35 lacs
(Master Circular 28.02.2021) complying with KYC norms. EMI/ NMI:<= 60% for Platinum
(NBG/PBU/PL-XPRESS/2/2022 - 23 Maintaining salary account with with NMI<=2 lakhs;
Date: Wed 13 Apr 2022) SBI is not mandatory. <=65%for Platinum with
Max. amt of loan: 24 times NMI NMI>Rs2 lakhs
& EMI/NMI<=60%.
All platinum salary package
customers (NMI+.Rs.1.00
Lakhs) should be offered Xpress
216
Elite only.
72 m or residual service period, No collateral security or third- Max. 2 loans allowed per CIF. The
whichever is less. party guarantee required. saving account should be under
For CSP other than Govt and Defense, loan CSP and ERC fed in CIF.
should be repaid by 60 yrs age. Disbursement to be made into
savings account with same CIF.
This is also applicable for
customers having salary
account with another Bank,
Xpress Credit to Non-permanent employees - Withdrawn
Xpress Lite:
Eligibility Amount of loan Repayment
All salary package customers with Term Loan only: 36 months or residual service.
regular salary credits in Salary Package Rs. 0.25 lacs to 1.80 lacs. EMI / NMI: 40% For Govt/ Defence customers
Max. Loan amount: 12 times NMI
accounts (excluding non-permanent No second loan
min CIBIL score is 680 and for
employees and irregular salary credits). corporate customers min CIBIL
For CSP customers mapping of employer Score is 700. No loan for NIL/
code is mandatory NTC Scores.
Salary: Rs. 7,000 to Rs. 14,999 NMI
SBI Insta credit

Top up loan over INB
Objective/ Purpose
Existing Xpress Credit Loan Borrowers 20% of Xpress Credit Limit
Top up loan over INB who fulfil the following conditions will be (Existing Loan Limit) Minimum:
(Master Circular 28.02.2021) offered “SBI Insta Credit Top Up Loan” Rs 20,000
• Minimum existing Xpress Credit Maximum: Rs 3,00,000
Loan Limit of Rs 1 lac EMI/ NMI: 50%
The loan will be coterminous
• Minimum residual maturity of with existing Xpress Credit.
Xpress Credit Loan 1 year Total loans restricted to 2,
including Insta Top Up.
• Satisfactory repayment record of at
least 1 year
• The customer should not have
an existing Top up Loan
No instance of the Xpress Credit Loan

slipping to RG3 and beyond in last 1
year
There is no security or
Residual Maturity of Loan Tenure of guarantee for this loan.
existing insta
xpress credit credit
12 mts – 35 mts 1 year (12 mts)
36 mts – 48 mts 3 years (36 mts)
217
Pre-approved Xpress credit (PAXC)
Objective/ Purpose
Pre-approved Xpress credit • The eligible customers are pre- The offer to the pre-selected
(PAXC) (Master Circular selected based on an analytic customers will be valid till the end
28.02.2021) engine. of month in which they are offered
• Account should open with Salary the loan. The list of Accounts pre-
package and in single name. selected for this offer will be
• Should be KYC compliant, dynamic and a new list will be
resident Indian with age between prepared on a monthly basis
18-56 years. based on the eligibility criteria.
Aadhaar is mandatory. There should minimum limit Rs. 25,000 and
be at least once credit every month for maximum Rs. 15,00,000**
the last 12 months and median of subject to EMI /NMI at most 50%
maximum credit in salary accounts for Max. loan 24 times NMI
the last 12 months >= Rs. 5,000/- **(only for Diamond and
Platinum Category, DSP
customers & govt. Platinum
salary package customers),
For others – Rs. 8 lacs.
Maximum: 72 months or {58 years- Age Only one PAXC can be availed
of customer (years and months) as on at any point of time.
month end date of data extraction}
Pre-approved Pension loan

Objective/ Purpose
Pre-approved Pension loan Banks existing customers will be Loan Amount: 18 times NMP
pre-selected by analytics engine subject to minimum limit Rs.
25,000 and maximum Rs.
bases on: 500,000; EMI /NMI at most
PPOs of customer should be with 50%.
the bank. Account should be in Max Age: 71 Yrs 9 months (72
single name. Years)
There should not be an existing
pension loan in CIF. Pension data
base should contain family details
60 months or (70 yrs less age of customer) Only one PAPNL can be availed
at any point of time
PAPL
i. End-to-End digitized process (no branch visits no documentation)
ii. Simplified 4 click process for availing loan through app / portal with instant disbursement.
iii. Pre-selected customerson the basis of the analytic engine
iv. Maximum loan Rs 2 lacs
v. loan tenure from 6 month to 12 months.
Pension Loan
(i) All Central, State Government pensioners, and SBI Pensioners
(ii) Pensioners whose pensions are disbursed by Govt. Treasuries by cheques drawn in favour of our branches.
(iii) PSU
Pensioners who maintains their pension accounts with SBI whereas PPOs are maintained by PSUs
themselves are also eligible with certain stipulations
Age: Up to 76 years at the time of sanction

218
Defense Family Pensioners whose PPOs are migrated to PCDA, Allahabad will also be included.
Age Max. Loan to Max. Loan to family pensioners

pensioners
Upto 72 years 14.0 5.0
> 72 yr and upto 74 12.0 4.5
> 74 and upto 76 7.5 2.5
EMI / NMI 50% 33%
Min Loan. 0.25 0.25
Repayment period: Maximum 72 months subject to Loan to be repaid in full before the customer attains the age
of 78 years of age.
2nd loan may be given any time after first loan subject to eligibility.
The requirement of third-party guarantee has been waived for Regular Pensioners (includingSBI Regular
Pensioners) whose PPOs are already maintained by our Bank.
Jai Jawan Pension Loan

Pensioners of Armed Forces, including Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP,
etc.), Coast Guards, Rashtriya Rifles and Assam Rifles etc. whose Pension Payment Order is with us. Defense
Regular Pensioners whose PPOs are migrated to PCDA, Allahabadwill also be included. For Defense
Pensioners and Defense Family Pensioners whose PPOs are maintained at SPARSH, the branch is to select
dropdown option as "PCDA Prayagraj-Defense" from the dropdown under ‘Applicant’ on RLMS
Age Max. Loan Max. Loan to

to family pensioners
pensioners
Upto 72 years 14.0 5.0
> 72 yr and upto 74 12.0 4.5
> 74 and upto 76 7.5 2.5
EMI / NMI 50% 33%
Min Loan. 0.25 0.25
Repayment period: Maximum 72 months subject to Loan to be repaid in full before the customer attains the age
of 78 years of age
Family Pensioners of Defence & Paramilitary Personnel will continue to avail Pension Loan under SBI Pension
Loan Scheme.
SBI STUDENT LOAN SCHEME
NAME OF SCHEME/ ELIGIBILITY LOAN AMOUNT, MARGIN & INTEREST

RATIONALES
(Ref. Master Cir. Indian National (NRIs, PIOs/OCIs
Sl.1239/2019-20 dtd included); secured admission to higher
02.12.2019 & Master education courses including
Circular dated Feb professional/tech. Courses or to foreign
2021). universities / institutions, through’
-Scheme formulated entrance test or selection process.
as per IBA’s Model CIBIL -1 or >685
Education Loan (unsecured) & -1 or >591 (secured)
scheme. required for both student & co-
(Priority Sector applicant. If parents have poor credit,
Advance: o/s of Rs. 20 grandparents, spouse, major siblings,
lakhs per customer). any relative/ unrelated 3rd party with
Loan applications to good standing can also be taken as co-
be routed through applicant.
Vidya Lakshmi Portal Loan may be granted for admission on
(VLP). Disposal of Management Quota also
application within 15
219
days. Max: Rs 20 Upto 4 lakhs: No Margin
lakhs for > 4 lakhs: 5% (studies in
Studies in India) & 15% (studies
India (Rs.50 abroad). To be brought in
lakhs for proportionately.
MBBS/MD) Scholarship/ teaching
(Max.Rs.50 assistantships may be
la included in margin.
khs in
deserving
cases with
CGM’s
approval)
Max: Rs.7.50
lakhs for
studies
abroad.
OCIs/PIOs
eligible for
min.Rs.10
lakhs max.
Rs.40 lakhs
only for
studies in
India)
Eligible Expenses: Tuition Fee, Lib. & Lab.,

Exam, Living/ Hostel exp. Books, uniform,
equipment, instruments, computer, study
tours/ project work/ any other exp. (Max. 20%
of total tuition fee). Bldg. Fund/ Sec Dep
(Max.10% of total tuition fee). Two-wheeler
(Max.Rs.50,000 where loan is secured). Tax
Collection at Source (TCS) may be applicable
in case of remittances for studies abroad
depending on the amount remitted. In case of
Mgmt. quota seats, fee approved by Govt./
regulatory body to be considered. Each ward
can avail loan up to Rs.7.50 lakhs without any
collateral security.
REPAYMENT SECURITY OTHER FEATURES & REF CIRCULARS
15 yrs after moratorium of Up to Rs.7.50 lakhs: No collateral -Processing Fee: NIL for loans up to Rs.20 lakhs
course period + 1 year or security/ TPG, only Parents’ coin India. Rs.10,000 + GST for loans
6 months after getting a obligation (All such loans covered under >Rs.20 lakhs for studies in India. For studies
job whichever is earlier. CGFSEL) abroad, Rs. 5000 to be deposited in the name of
Two extensions of 6 For above Rs. 7.50 lakhs– Parents’ co- the student. To be adjusted towards processing
months each (total obligation with Tangibles of full value & fee if loan not availed within 6 months of sanction.
moratorium 24 months) assignment of future -Docs execution: by both student & parent. By
permitted in case of non- income of the student. Rinn Raksha to parent/ guardian only in case student
employment, natural be insisted upon for better coverage. is minor. Student’s future income is assigned
disasters, etc. If First Acceptable Securities: Our Term in favour of the bank in the documents.
loan is outstanding, Dep., SBI Life & LIC Ins. Pol., G- -Staff: Loan to wards of staff on similar terms &
2nd loan (Top-up) Sec/PSU Bonds, SBIMF sch. conditions (with concessional interest rate)
within the overall limit (FMP/DAF), Land/Bldg. without any restrictions/ formalities like admn.
may be permitted to Value of Sec.- 100% of loan amt in clearance, lien on PF, max. deductions from
pursue the professional case of liquid sec/ immovable gross emoluments.
course. properties/ combination of both for -Asset/ Liability statement: not required for
loans above Rs.7.50 Lakhs and up to loans up to Rs.7.50 lakhs.
Interest Rates: Rs.20.00 Lakhs. For loans above -Take-over: Min o/s Rs.10 lakhs. Min
Floating (w.e.f. Rs.20 Lakhs and up to Rs.50 lakhs, satisfactory repayment history of 12 months with
22.06.2021). Linked to liquid collateral of 100% or immovable stipulated CIC scores from 2 CICs.
EBLR property of 110% or a combination of - All educational loans are sanctioned as
Penal Interest:@ 2% be both amounting to 110% of loan. Term Loans
220
charged for loans > Rs 4 CGFSEL: Loans up to Rs.7.50 lakhs
lakhs for OD amt and covered (no security, TPG, Insurance
period if EMIs remain to be taken). AGF of 0.50% payable by
unpaid for 30 days the bank centrally. 75% of default
amount covered.
SBI SCHOLAR EDUCATION LOAN-
NAME OF SCHEME/ RATIONALES ELIGIBILITY LOAN AMOUNT, MARGIN &

INTEREST
SBI SCHOLAR EDUCATION -Students should be an Indian Loan Amount – Without
LOAN- national (NRIs, PIOs/OCIs Collateral:-List AA- Rs.40 lakhs,
-Loan to deserving meritorious students for included) & should have secured List A-Rs.20 lakhs, List B-Rs.20
full time & part time courses in India at select admission to full time lakhs & List C- Rs.7.50 lakhs. With
premier & reputed institutes. professional/technical courses Collateral:-List A-Rs.30 lakhs &
(Ref. Master Cir. through Entrance Test/ Selection List C-Rs.30 lakhs. For OCIs/
Sl.1239/2019-20 dtd process. Select part-time courses PIOs (with collateral)- Min.-
02.12.2019& Master Circular Feb also eligible. CIBIL requirement Rs.10 lakhs; max Rs.40
2021) same as Student Loan scheme. lakhs.CGM may grant Rs 3
Co-borrower may be waived in lakhs p.a. for main
case of all List AA institutes& IIMs cultural event/ college
in List A. magazines/ placement session.
Expenses covered – Fees
(Tuition, hostel, exam, lab, etc.),
cost of books, equipment,
uniforms, instruments. Caution
money (10%), travel exp.,
computer, other exp. (max.25% of
loan amount or Rs. 1 lakh if bills
not produced)
Margin – ≤ Rs 4 lakhs-NIL, >4
lakhs & ≤ Rs.7.50 lakhs- 5%; >
Rs.7.50 lakhs- NIL
REPAYMENT SECURITY OTHER FEATURES & REF
CIRCULARS
Repayment- 15 yrs after completion of Security- Tangible collateral -No Processing Fee/ Upfront fee
nd
course period & moratorium of 6 months/ I security required for loans up to - 2 loan available under over all
year as applicable. Rs.30 lakhs for pursuing courses at limit
Interest Rate: Floating, linked to EBLR institutes in List A & List C. No
Simple Int during Course & moratorium. security for loans up to Rs.40 lakhs - Loan to be processed by
Penal interest @ 2% for loan above Rs. 2 (List AA), Rs.20 lakhs (List A), Rs.20 mapped/ designated branches.
lakhs for overdue amt for OD period. lakhs (List B) & Rs.7.50 lakhs (List Any proposal beyond disc. powers
C). to be handled by linked CPCs/
100% of loan amt in case of liquid RBOs.
sec/ immovable properties/
combination of both for loans above -all non-mapped branches of Sc-III
Rs.7.50 Lakhs and up to Rs.20.00 incumbency & above can sanction
Lakhs. For loans above Rs.20 Lakhs scholar loans. For others, loan to
liquid collateral of 100% or be sanctioned by CPCs.
immovable property of 110% or a -loan accounts can be
combination of transferred to a branch closer to
both amounting to 110% of the co-borrower
loan.
SBI Skill Loan Scheme
NAME OF SCHEME/ RATIONALES ELIGIBILITY LOAN AMOUNT, MARGIN &
INTEREST
For individuals who intend to take up skill Indian national. No min age. Edu Min Loan: Rs. 5000, Max:
development courses at Govt. it is/ qual. as per NSQF. Co-applicant Rs.1,50,000.
Polytechnics & pvt. training partners of mandatory. No minimum course For Govt. Institutions: No
National Skill Development Corporation duration. separate validation of fees. For
(NSDC) Private Institutions for loans
(Ref. Master Cir. above Rs.50,000: Fee structure
221
Sl.1239/2019-20 dtd will be validated by the PBBU of
02.12.2019& Master Circular Feb the concerned LHO through a
2021) mapped branch. Margin: NIL,
Interest Rate: Floating, linked
to EBLR.
REPAYMENT SECURITY OTHER FEATURES & REF
CIRCULARS
Repayment: Loans upto Rs.50,000: Upto 3 Security: NIL; -In case of Govt.Institutes: All
years, above Rs.50,000 and upto Rs.1 lakh: Parent/Guardian will execute Branches, except Rural Branches,
up to 5 years & above Rs.1 lakh: up to 7 loan documents along with the are authorised. In case of Private
years. Moratorium: 6 months (for courses student, as joint borrower (co- Institutes: PBBU at the concerned
up to 1 year) & 12 months (for courses borrower). Spouse may be LHO will identify a nearby Branch
above 1-year duration) after completion of included as co-applicant which can verify changes in fee
the course. wherever applicable, in addition structure on an ongoing basis.
to Parent/ Natural Guardian. -As far as possible, loans in
respect of such Institutions should
be routed through the mapped
Branch.
-No processing fee
SBI Global Ed-vantage Scheme
NAME OF SCHEME/ ELIGIBILITY LOAN AMOUNT, MARGIN & INTEREST

RATIONALES
SBI Global Ed-vantage Scheme Eligibility: Indian national Min Loan Amount: >Rs.7.50 lakhs (e-Cir: Sl
to deserving/meritorious students (including NRIs). CIBIL No.201/2020-21 dated 26.05.2020); Max:
for pursuing full- time regular requirement as in Student Loans. Rs.1.50
courses (in any discipline) at Co-borrower must in all the crore. Circle CGM can sanction more than
foreign colleges/ universities in cases. Rs.1.50 crore on a case-to-case basis on
USA, UK, Canada, Australia, merits
Singapore, Japan, Hong Kong, Margin: Above Rs. 7.5 Lakhs to Rs. 20
New Zealand and Europe [Austria, Lakhs -15% & above Rs. 20 Lakhs to Rs. 1.5
Belgium, Czech Republic, Crores- 10%
Denmark, Estonia, Finland, Eligible expenses: In addition to existing
France, Germany, Greece, Ireland, expenses covered under the scheme
Italy, Netherlands, Norway, Poland, (tuition fee, boarding, lodging, purchase of
Portugal, Russia, Spain, Sweden, books & equipment, one-way travel
Switzerland, United Kingdom]. expense), ‘Contingency Expenses’
Other countries with the approval of amounting to maximum of 5% of loan
CGM on merit basis. amount to be considered. Interest Rate:
(Ref. Master Cir. Floating, linked to EBLR.
Sl.1239/2019-20 dtd
02.12.2019& Master Circular
Feb 2021)
REPAYMENT SECURITY OTHER FEATURES & REF CIRCULARS
Repayment: Upto maximum of 15 Security: 100% of loan amt in case -Validity of sanction (all education loans): 6
years after commencement of of liquid sec/ immovable properties/ months. Revalidation required if account not
repayment. Repayment starts 6 combination of both for loans opened and/or amount not disbursed. Fresh
months after the completion of the above Rs.7.50 Lakhs and up to CIC, TIR, etc. to be obtained along with 50%
course. Rs.20.00 Lakhs. For loans above of the processing fee.
Rs.20 Lakhs liquid collateral of -For security in the form of land/ building, the
100% or immovable property of extant instructions of 110% of the loan limit
110% or a combination of both plus simple interest to be accrued on the loan
amounting to 110% of loan amount during course and moratorium period,
will continue to be applicable.
(Ref. e-Cir Sl. No.201/2020- 21 -Land/ building should be SARFAESI
dated 26.05.2020) compliant and not leased to Schools,
(e-Circ: NBG/PBU/PL- hospitals, old age homes and other social
EDUCATION/ 18/ 2022 – 23 sector infrastructure (like bus stands).
dated 27.06.2022) -Sanction letter can be issued to the students
by Branch/ CPC prior to submission of Visa/
222
Form i-20, if demanded by the foreign
Institution/ University/ VISA issuing
authorities; if otherwise the proposal is in
order in all respect and sanctioning authority
is satisfied fully.
-Processing Fee must be recovered
before issuing Sanction Letter.
INTEREST SUBSIDY& CREDIT GUARANTEE SCHEMES
Central Sector Interest Subsidy Scheme (CSIS) PadhoPardesh Interest Subsidy Scheme
▪ Launched by the Govt. of India in 2009. Withdrawn

▪ The revised scheme, applicable for academic years 2018-19
& 2019- 20, came into being on 01.04.2018.
▪ The scheme provides full interest subsidy during the
moratorium period on model education loans for pursuing
technical/professional courses in India.
Students enrolled in professional/ technical courses only
from NAAC accredited Institutions.
▪ Students whose annual gross parental/ family income is up
to Rs.4.5 lakh are eligible under the scheme.
▪ Under the scheme, education loan is provided without any
collateral security and third-party guarantee and for a
maximum amount of Rs. 7.5 lakhs.
▪ There would be tag/marker on the degree of the student
indicating his repayment liabilities. Electronic Tags will enable
employers to identify loanees.
▪ Canara Bank will be the Nodal Bank for implementing the
scheme
INTEREST SUBSIDY& CREDIT GUARANTEE SCHEMES
Dr. Ambedkar Interest Subsidy Scheme Credit Guarantee Fund Scheme for
Education Loans (CGFSEL)
▪ Scheme of Interest Subsidy on Education Loan for Overseas ▪ Education Loans sanctioned on or after September
Studies for OBCs and EBCs. 16, 2015 are covered.
▪ The scheme is effective w.e.f. 2014-15. ▪ Education loan sanctioned as per IBA Model
OBC candidates with annual family income up to Rs.8.00 Education Loan Scheme for perusing Higher
Lakh and EBC candidates with annual family income up to Education in India/ Abroad
Rs.2.50 Lakh will be eligible for subsidy.
Amount of Loan sanctioned should be up to ₹
▪ The interest subsidy under the scheme shall be available to
7,50,000
the eligible students only once, either for Master’s or Ph.D. ▪ No Collateral security or third-party guarantee
levels. should be attached with the Loan
▪ The students should have secured admission in theapproved ▪ No Additional cover on Education Loan by Govt./
courses at Masters, M. Phil or Ph.D. levels abroad for the General Insurer/ any person or association of
approved courses. persons carrying on the business of insurance,
▪ The student should have availed loan from a scheduled bank guarantee or indemnity.
under the Education Loan Scheme of the Indian Banks The Bank/Member Lending Institution shall pay
Association (IBA) for the purpose. Annual Guarantee Fee (AGF) of 0.50% p.a. of the
▪ 50% subsidy to be provided for girl student outstanding amount as on the date of application of
guarantee cover.
Canara Bank is the nodal Bank for implementing the
scheme
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P - GOLD LOAN – IMPORTANT POINTS TO REMEMBER
Purpose 1. General Purpose & Non-Speculative,
2. Housing related - Margin money, Regn. Charges, Project price escalation
in construction ( Housing loan with SBI is must)
Eligibility Individuals > Age 18 with steady source of income.
For (Realty) Housing related – Home loan with SBI
Loan amount P Segment:
Min: Rs.20,000/-(Rs. 1,00,000/- for Realty & Liquid OD purpose)
Max: Rs. 50 Lacs ( for all variants)
Agri Segment:
Min : Nil ( No Minimum)
Max : Rs. 25 Lacs
Advance value circulated by Precious Metals dept
Facility Demand Loan / Overdraft
Max no of Gold Per Gold : Three (3)
loans Agri Gold : Five (5)
Verification a) Touch stone method b) Nitric acid test
methods c) Specific gravity test d) Gold assaying machine (Karatometer)
Authorised Branches for which gold retention limit has been approved by the
Branches appropriate authority
Purity for 24 Karat, 22 Karat, 20 Karat, 18 Karat
sanction
Valuation of Upto Rs. 50,000 /- cash officer ( Rs. 1,00,000 /- for Amaravati, Chennai,
Gold Hyderabad and Thiruvananthapuram Circles)
Rs. 5,00,000 /- and above – Two appraisers
(Exposures at CIF level)
Risk Scoring 31 and above
Model
Margin DL / OD 25 %
3 month / 6-month Bullet repay 30 %
12 Month Bullet Repay 35 %
Top up 50 %
ROI for staff 1% above the prevailing interest rate payable for public for 60 months TDS
Gold loan
Processing fee 3 Month Bullet Repay Rs. 200 /- + GST
6 Month Bullet Repay Rs. 300 /- + GST
12 Month Bullet Repay 0.50 % of loan amount
Min Rs. 500 /-, Max Rs. 10,000 /-
EMI, OD, Realty, Top up 0.50 % of loan amount
Min Rs. 500 /-
Pre payment Nil
charges
Penal Interest 2 % p.a with monthly rest , for the irregular amount and overdue period
Appraiser 0.05% of Loan amount to 0.10% of Loan amount.
Charges Metro/Urban Centers Min. Rs. 50/- Max. of Rs. 600/-
Rural / Semi Urban Centers Min. Rs. 50/- Max. of Rs. 300/-
No of appraisers Min 2 appraiser for each branch to be empanelled
Safe keeping Rs. 100 /- per month – (30 days after the expiry of the prescribed tenure of
charges gold Loan)
Income TAX u/s 24(b) & 80EEA for Interest, and u/s.80C for principal
benefit under
224
Realty Gold loan
Variants 1. 3 Month Bullet Repay 6. SBI Realty Bullet Repay
2. 6 Month Bullet Repay 7. SBI Realty EMI Gold
3. 12 Months Bullet Repay 8. SBI Realty Liquid Gold
4. Liquid Gold loan ( OD) 9. Top up Gold
5. SBI Per Gold ( EMI) 10. Staff Gold loan
Variants 3 Month Bullet Repay 3M SBI Realty Bullet Repay 12M
6 Month Bullet Repay 6M SBI Realty EMI Gold 36M
12 Months Bullet Repay 12M SBI Realty Liquid Gold 36M
Liquid Gold loan ( OD) 36M Top up Gold 12M
SBI Per Gold ( EMI) 36M Staff Gold loan 36M/
60M/
100M
2nd appraiser 1. For Gold loan above Rs. 5 lacs ( CIF based)
2. For limit below Rs.5 lacs, second appraiser on random basis – 15 %
of the loan sanctioned during the month
Documents 1.Application with Photograph (PL – 50)

2.OVD ( Prefer for E-KYC)
3.Gold Loan Take Delivery Letter (PL – 51)
4.Witness Letter in case of illiterate borrowers. ( PL – 52)
5.Arrangement Letter in duplicate – duly acknowledged (PL – 53)
6.DP Note & DP Note Take Delivery Letters.
Delivery of very exceptional circumstances, undoubted
ornaments to 1. Authority holder PL – 54 (should be compulsorily taken in the
third party presence of an officer and verified)
2. Indemnity letter PL – 55
3. acknowledgment on COS 49
4. should be entered in the Branch Document Register
Part Delivery of Permitted, On written request of the borrower
ornamants
Deceased • Interest to be charged as per the contracted rate
settlement • ornaments will be delivered only to the legal heirs
• A letter of undertaking to this effect is obtained and kept on record
• KYC formalities of all legal heirs / executants of the documents
• The person(s) liquidating the loan amount should be made to sign the
letter of Indemnity as one of the sureties
• The gold ornaments should be held as safe deposit articles under
joint custody until settlement.
• stamped letter of indemnity should be executed by the claimants with
two sureties.
• May not insist on legal representation from the legal heirs,
irrespective of loan amount as per RBI guidelines
LTV Breach • On the day when LTV is above 75%, 1st Notice is to be sent
• If the above position continues, then 2nd Notice is to be sent after 15
days from the date of 1st Notice
• If still the above position continues then 3rd Notice is to be sent after
30 days from the date of 1st Notice
Verification of Gold Ornaments to be carried out by an appraiser other than
NPA Accounts the original appraiser. Auction process to be initiated immediately
225
Other important points:

1. LTV Ratio is to be computed against total outstanding including accrued interest.
2. Gold ornaments bearing initials or other marks, ownership of the ornament is verified by
discreet enquiries & confirmation letter
3. Tallying of the closing balance of Gold Loan bags with the Ledger shall be done on daily
basis by the joint custodian
4. Appraiser fee to be recovered from borrower & should not be paid in cash.
5. Disbursement must be made to Linked SB/CA only. No cash disbursement
6. For solid gold, Specific gravity method must be used
7. Gold assaying Karatometer is not an alternate to any other method of assessing
8. One Gold appraiser is must for loan amount above Rs.1 lac
9. Each ornament should be entered individually in the Loan Application
10. The gold loan ledger should be preserved for 10 years for audit purpose
11. Immediately after the account becomes irregular, a letter (PL-57) to be sent within 15
days
12. Approval of Branch Manager will be required before auction of gold ornaments
13. Gold Retention Limit of the branch should be reviewed annually at the time of review of
Cash Retention Limit
14. 50% or Max. 100 accounts, whichever is less - Quarterly verification by an official other
than the Joint custodian (arranged by the controller).
15. While auction, each item of the ornaments must be auctioned separately
16. Ornaments may also be sold through private treaty inviting offers from the local jewelers,
members of public
17. No loans should be granted against Gold Bar/Bullion
18. Top up for Existing EMI and Bullet Repayment Gold Loan Borrowers
19.
Ref Circular R&DB/PBU/CD&e-COM-GL/2/2023 – 24 Date: Mon 8 May 2023
226
AGRI GOLD LOAN – MULTI PURPOSE GOLD LOAN - IMPORTANT POINTS TO
REMEMBER
Purpose To meet the short-term production / investment credit needs.

Eligibility All farmers: Individuals who are owner cultivators, Agri entrepreneurs.
• Tenant farmers, Oral lessees & Sharecroppers
• Any person engaged in any agriculture or allied activities
Nature of facility
Loan amount Minimum : Rs. 5,000 /- Maximum : Rs. 25 Lacs
Assessment of Limit Farm activity : As per Scale of Finance
Allied activity : as per the unit cost /Project cost of various Agri
Activities (Dairy, Poultry, Minor irrigation, Fisheries etc
( Subject to maximum of Advance value of gold)
Margin
Repayment 12 months from the date of disbursement of the loan
ROI
Processing fee a. Up to Rs.50,000: NIL
b. Above Rs.50,000 to up to Rs. 2 Lakh: Rs.500 + GST.
c. Above Rs.2.00 Lakh: 0.30% of loan limit + GST.
Pre payment charges Nil
Penal Interest 2 % p.a, for the irregular amount and overdue period
End use of funds Borrower having other farm loan:
during regular field visits should ensure
Borrower having only Agri Gold Loan: -
Branches are advised to conduct post sanction inspection and compile
a report. The report must be kept on branch record
Other • mandatorily obtain evidence of land record from all borrowers
Conditions irrespective of loan amount, except tenant farmer/oral lessees &
sharecropper who can avail loan limit upto Rs 2.00 Lakhs with
self-declaration
• Applicant should be a resident of an area not exceeding 25 to 30
Kms from the branch. However, it is not applicable to existing
customers and the applicant from the non-banked areas
• exceeding five accounts per borrower / CIF, should be referred to
the next higher authority for approval before sanction
• Interest rate linked to MCLR
• No subvention available
Ref Circular NBG-AB-IC&GL/ABUICGL-GOLDLOAN/21/2023 – 24 Date: Thu 5 Oct 2023
227
AGRI GOLD LOAN – KCC GOLD LOAN -
Purpose To meet the short-term credit requirements for cultivation of crops.

Eligibility • Farmers - individual/joint borrowers who are owner
cultivators.• Tenant farmers, oral lessees, sharecroppers and SHG/JLG
Nature of facility KCC
Loan amount Minimum : Rs. 1.61 Lacs Maximum : Rs. 25 Lacs
Assessment of Farm activity : As per Scale of Finance
Limit Allied activity : as per the unit cost /Project cost of various Agri
Activities (Dairy, Poultry, Minor irrigation, Fisheries etc
( Subject to maximum of Advance value of gold)
Margin Nil (inbuilt while fixing the Scale of Finance (SoF).
Interest GoI providing 1.50 % p.a. interest subvention to Bank on such advances.
Subvention Additional subvention of 3 % p.a. for prompt repayment by the farmers.
Thus, the effective interest rate charged to farmers is @ 4 % p.a
The interest subvention will be available, subject to the aggregate limits

sanctioned up to RS.3 lakh to the customer under KCC and KCC (AH&F)
Repayment 12 months from the date of disbursement of the loan
ROI 7 % p.a ( 4 % p.a for prompt repayment)
Processing fee a. Up to Rs.50,000: NIL
b. Above Rs.50,000 to up to Rs. 2 Lakh: Rs.500 + GST.
c. Above Rs.2.00 Lakh: 0.30% of loan limit + GST.
Pre payment Nil
charges
Penal Interest 2 % p.a, for the irregular amount and overdue period
End use of Borrower having other farm loan:
funds during regular field visits should ensure
Borrower having only Agri Gold Loan: -
Branches are advised to conduct post sanction inspection and compile a
report. The report must be kept on branch record
Other • ensure pre-and post-sanction inspection for end use of funds
Conditions • Applicant should be a resident of an area not exceeding 25 to 30 Kms
from the branch. However, it is not applicable to existing customers and
the applicant from the non-banked areas
• exceeding five accounts per borrower / CIF, should be referred to the
next higher authority for approval before sanction
• Interest rate linked to MCLR
Ref Circular NBG-AB-IC&GL/ABU-ICGLGOLDLOAN/18/2022 – 23 , Date: Tue 23 Aug 2022
228
SME GOLD LOAN
Purpose Existing MSME Units (Proprietorship Firm only), - Only for Fund based
Limit
Nature of facility Demand Loan / Overdraft
Loan amount Minimum : Rs. 1 lac, Maximum – Rs. 50 Lacs
Assessment of 25% of the Projected Turnover of the unit, (ii) 100% of value of asset
Limit proposed to be purchased for business purpose, subject to not
exceeding 100% of the Advance Value of Gold as per existing
guidelines
Margin 25% is already in-built in Advance Value of Gold
Repayment 12 months
ROI Linked to EBR
Processing fee Upto Rs. 10 lacs – Rs. 500 /- + GST
Upto Rs. 20 lacs – Rs. 1,000 /- + GST
Pre payment Nil
charges
Penal Interest 5 % p.a with monthly rest , for the irregular amount and overdue period
End use of Funds to be utilized for any business purpose and not for speculative
funds purpose. (Self-declaration to be obtained from customer)
Other ➢ Loan to be processed through LLMS
Conditions ➢ CRA / CUE not applicable
Online Loan Against shares

Objective/ Purpose
Online Loan Against shares The scheme envisages financing Minimum: Rs.50000/-
It is a competitive product designed to individual borrowers against the Maximum : For any personal
for people who need urgent cash but security of CNX 500 Scrips, which purpose maximum loan is
don’t want to sell or liquidate their qualifies the parameters set for Rs.20.00 lacs For subscribing
holding of shares. acceptance of shares as security. to IPOs maximum loan is
For meeting contingencies and needs of Rs.10.00 lacs
personal nature and for subscribing to Existing individual customers ROI: 1 Yr MCLR+ 2.50%
rights or new issue of shares against with KYC compliant accounts, Spread
security of existing shares. good past relationship, having
demat account with our SBI
CAP Securities Ltd (SSL).
Loan will only be sanctioned to
individuals in his/her individual
name i.e., loan will not be
sanctioned jointly.
50% of the prevailing Stock Exchange In 30 EMIs starting from next The scheme envisages financing
market prices of the shares as calculated month in Demand Loan and in to individual borrowers against
based on the prevailing market price as on case of OD loan tenor is 30 the security
the date and time of loan sanction. months. of CNX 500 Scrips, which
qualifies the parameters set for
acceptance of shares as
security. Pledge of Demat
Shares.
Other features
Loan to be processed & sanctioned by Nodal Branch (Specialised Securities Finance Branch Worli) only; fully
online procedure
229
Loans Against Scheme of SBI Mutual Fund (LAMFU)
Objective/ Purpose
The scheme covers short term advances to Individual(s) over 18 Minimum : Rs.25000/- Maximum :
individuals against the collateralsecurity of years of age except (a) Equity/ Hybrid/ ETF MF: Rs
demat units of open-ended schemes of SBI NRIs. 20,00,000
Funds Management Ltd. (SBIFM), a
subsidiary of SBI. Loan may be granted to Funds should be given (b) Debt/ FMP MF: Rs 5,00,00,000
individuals to meet contingencies and only after the lock in
personalneeds but not for subscribing to or period of 3 years has (In case of Debt/ FMP MF, the deviation
boosting up the sales of another scheme of expired for Max Loan Limit will beavailable to
mutual funds, for the purchase of shares / Circle CGM as per Loan Policy
debentures / bonds or Guidelines).
speculative purposes
(a) Equity/ Hybrid/ ETF MF: 50% Overdraft (Auto Lien on units of MF
Renewal/Review every
year). R&DB/PBU/CD&e- COM-PL/7/2022
(b) Debt/ FMP MF: 15% - 23 dated
12.05.2022
ROI: 1 Yr MCLR+
2.50% Spread
Other features
Authorised Branches: 503 branches are authorized to sanction the loan.
The list of branches published vide e- Circular NBG/PBU/PL-LOAN AGAI/57/2017 –18 dated 19.01.2018
Loan Against Units of SBI Debt Fund Series (SDFS) - Short Duration Loan
Objective/ Purpose
To meet contingencies and other Over 21 years, maximum age limit Minimum: Rs.10,000.00.
personal needs. The advances should not in the case of individuals –65m Maximum: 20 lacs subject to
be granted for subscribing to or boosting with a steady source of income (a)Employees/ Pensioners:10
sales of another scheme of mutual funds, who are Employees, times of NMI
for the purpose of shares/ debentures or Professionals, self- employed and (b)Self-employed: One year’s
for any speculative purposes. others who file income tax returns, NAI.
are engaged in agricultural and
allied activities, pensioners of
central and state governments,
defense establishments,
PSUs/Public Sector Banks, Non-
Resident
Indians holding a valid Indian
Passport with a steady source of
income.
Employees: Net Monthly Income
(NMI) Rs.5000/= (net of all
deductions including tax payable)
Self-employed –Net Annual
Income(NAI) Rs. 50,000.00
Short Duration Loan: Loans up to 1year – Overdraft or Demand Loan with Lien on the units. The statement
30% a maximum repayment period of account of the FMP certifying
of 12months. that a lien has been marked by
the Registrar would need to be
retained along with the loan
documents.
Other features: The security should be marked to market on a weekly basis i.e., the value determined based on
the lower of NAV/repurchase price on any day of the week.
Borrower will submit an Irrevocable undertaking g for premature redemption in the event of default..
230
Loan Against Units of SBI Debt Fund Series (SDFS) - Long Duration Loan
Objective/ Purpose
SDFS Long Duration Loan Individuals over 21 years Minimum: Rs.10,
To meet contingencies and other maximum age limit in the case of 000.00. Maximum: 20 lacs
personal needs. The advances should individuals –65, with a steady subject to (a)Employees/
not be granted for subscribing to or source of income who are Pensioners: 10 times of
boosting sales of another scheme of Employees, Professionals, self- NMI
mutual funds, for the purpose of shares/ employed and others (b)Self-employed: One year’s
debentures or for any speculative who file income tax NAI.
purposes. returns, are engaged in
agricultural and allied
activities,
pensioners of central and
state governments, defense
establishments,
PSUs/Public Sector Banks, Non-
Resident
Indians holding a valid Indian
Passport with a steady source of
income.
Employees: Net Monthly
Income (NMI) Rs.5000/=
(net of all deductions
including tax payable)
Self-employed –Net
Annual
Income (NAI) Rs. 50,000.00
Long Duration Loan: Loans above 1 year Overdraft or Demand Loan with The security should be marked
– a maximum repayment period to market
50% of 36 months. on a weekly basis i.e., the value
determined based on the lower
of NAV/repurchase price on any
day of the week.
Lien on the units. The statement
of account
of the FMP certifying that a lien
has been marked by the
Registrar would need to be
retained along with the loan
documents.
Other features
Borrower will submit an irrevocable undertaking for premature redemption inthe event of default.
231
Loans Against NSCs / KVP
Objective/ Purpose
Customers maintaining Minimum : NA Maximum : NA
To meet expenses of personal nature. satisfactorily conducted
All branches can grant loans against the accounts ROI: 1 Yr MCLR+
security of the National Savings 4.65% Spread
Certificates (NSCs) of VIII Issue and
Kisan Vikas Patras (KVPs ). Loan Processing Charges: 0.35% of
loan amount with a minimum of
Rs.500/- and Maximum of Rs.2500/-
plus applicable GST
Public: 40% of face value plus accrued A suitable repayment Pledge on NSC / KVP.
interest of NSC VIII issue/KVPs. schedule is to be fixed.
For Staff / Bank’s pensioners : 15% of Demand Loan /
face value plus accrued Overdraft with auto
interest of NSC VIII issue/KVPs. renewal every year.
(The margin is lower as a special case on
condition that interest should be serviced
by the staff promptly and regularly and
should be ensured that at no point of time
the outstanding exceeds the maturity value
of the security.)
Other features
Third party loans against NSCs and KVPs may also be considered on merits of each case.
Loans Against Life Insurance Policy including Insurance Policies of SBILIFE

Objective/ Purpose
To meet expenses of personal nature. All Loans to the customers, as Minimum: NA Maximum:
branches can grant loans to the advised above can be NA
customers maintaining satisfactorily sanctioned provided the
conducted accounts, against the security following conditions are fulfilled : ROI: 1 Yr MCLR+
of the life insurance policies issued The age of the insured should 2.50% Spread
by have been admitted by the Loan Processing Charges:
(a) Life Insurance Corporation of India (b) authority issuing the policy. 0.35% of loan amount with a
Department of Post Offices (c) SBI • The policy has not been issued minimum of Rs.500/- and
Life Insurance Company Ltd (d) HDFC under the Married Women’s Maximum of Rs.2500/- plus
Standard Life (e ) ICICI Prudential Life Property Act, 1874. Under the applicable GST
Insurance Married Women’s Property Act,
the benefits of the insurance
policy held in the name of the
husband, upon his death or on
maturity, will accrue to the
beneficiaries under the Trust.
Thus such a policy is not the
property of the husband and
therefore should not be accepted
as security.
• The policy stands in the name of
the borrower only.
The policy is in force and the
insurance premium has been paid
upto date.
232
5 % of surrender value. Loan to be repaid within 3 years. Assignment of Policy.
Demand Loan / Overdraft with
auto
renewal every year.
Other features
Advance against whole life policies should be discouraged.
Loans Against Bank’s Time Deposit

Objective/ Purpose
Loans Against Bank’s Time Deposit Customers maintaining Term Minimum : NA Maximum :
To meet expenses of personal nature. Deposits (including NRE/NRO NA
Time Deposits are deposits kept with the /FCNB deposits), Special Term
Bank by customers for the stipulated Deposits (including ROI: 1% above the applicable
contracted period and are ordinarily NRE/NRO/FCNB deposits), Rate on the deposit
payable only after expiry of the said Recurring Deposits (Accounts
contracted period. To meet depositors’ with balance of Rs.100/- & above
liquidity needs, branches can grant loans only eligible including NRE/NRO
against these deposits. Deposits) (No loan will be granted
against RFC deposits).
❖5% Margin on (Principal + Accrued DL/OD till residual maturity of Lien on Deposit.
interest) if residual tenure of Time deposit is deposit. Can continue in case of
upto 36 Months as on date of availing of auto rollover of Time Deposit.
loan.
❖ 10% Margin on (Principal + Accrued
interest) if residual tenure of Time deposit is
more than 36 Months and upto 60 months
as on the date of availing of loan.
❖ 15% Margin on (Principal + Accrued
interest) if residual tenure of Time deposit is
more than 60 months as on the date of
availing of loan.
Other features
Loans can also be granted to Third Parties (individuals) against the deposits, which are not held in their names.
(e.g.Loan granted to A against the deposit held in the name of B.) However, some stipulations vide circular No-
NBG/PBU/PL- TDRLOANS/29/2018- 19 dated 16.08.2018
is levied.
• All Loans against bank’s time deposit including to Staffs should be processed through LOS.
• The authority for concession in Rate of Interest has been described in
e - Circular No.: R&DB/PBU/CD & e- COM-PL/3/2018 –19 dated 20/08/2018.
Pre- Approved Personal Loan – PAPL- (YONO)

Objective/ Purpose
Pre- Approved Personal Loan – Both KYC compliant CSP & non CSP customers Minimum : Rs. 25000/-
PAPL- (YONO) are pre- selected based on regular credit like Maximum : Rs.
In order to provide our existing salary, pension, rent, minimum CIBIL score. 200000/-
customers an instant personal loan for The offer to the pre-selected customers will be
their urgent needs, it has been valid till the end of
decided to introduce a new digitized Calendar Quarter in which they are offered the
unsecured personal loan product ‘Pre- loan.
Approved Personal Loan’. The list of Accounts pre-selected for this offer will
Under this product, a pre-approved be dynamic and anew list will be prepared on
and hassle-free personal loan is quarterly basis based on the eligibility criteria as
made available to pre-selected stated above. The new list will be updated at the
233
customers of the Bank through the back end every Calendar quarter so that all
Digital Banking platform. ineligible account holders, who may be previously
eligible, are removed from the list.
NIL DL. NIL, Unsecured Loan

Loan Tenure: - Minimum: 6 Months
and Maximum: 12 Months.
• The Loan will be repayable by way of EMIs.
Standing Instruction (SI)
for EMI payment will be automatically set up on

Savings Bank Account of the customer.
Loan Account will be closed / pre- closed by the
Home Branch after recovering residual dues
from the Customer’s Savings/ Current Account.
Other features
Loan will be made available with just four clicks after login to ‘YONO’ (You Only Need One) mobile App :
• Selection of Loan amount and tenure by the Customer
• Selection of Standing Instruction date
• Acceptance of Terms and Conditions
• OTP confirmation. Only one PAPL can be availed at any point of time.
• Multiple PAPLs are not permitted even if a customer has availed lower loan amount than their
eligibility/loan offered.
• In case the loan account is closed before any of the quarter’s end, a customer will not be eligible for
taking a new loan till the start of next calendar quarter, which will also be subject to their eligibility for PAPL
facility in the subsequent
quarter(s).
Online Advance Against TDR / STDR

Objective/ Purpose
Any personal purpose other than The Retail Internet Banking Customers having Minimum: - Rs.
speculative purposes. transaction rights through which they can create 25000/-
Overdraft (OD a/c) against their DR/STDR/ Maximum Rs. 5.00
Loan to be processed & sanctioned eTDR/ eSTDR (Fixed Deposit) A/c. Available to Crore.
by Nodal Branch (Specialized customers having Fixed Deposits in single name
Securities Finance Branch Worli) only. The facility of online OD is not available
only; fully online procedure against NRE/NRO/ FCNR(B)
Fixed deposits, MODs & Tax Savings Fixed
Deposits.
(i) The Limit of overdraft against Minimum residual period of TDR/ STDR/ eTDR/ Pledge of Fixed
STDR/eSTDR will be by default eSTDR should be 6 months. Deposit.
90% of the face value of (i) STDR/eSTDR: 5 years or remaining maturity
STDR/eSTDR by default i.e., period of Fixed
customers will have no choice to fix
Deposit, whichever is lower.
the lower limit.
TDR/eTDR: 3 years or remaining maturity period
(ii) The Limit of overdraft against
of Fixed Deposit, whichever is lower. The
TDR/eTDR will be by default 75% monthly/ quarterly/ half yearly interest payable
on TDR/eTDR will continue to be credited to the
of the face value of TDR/eTDR by
account as originally opted by the customer.
default i.e., customers will have no
choice to fix the lower limit

Other features
No manual intervention is required by branches at the time of opening of this OD against Fixed Deposits. For each
and every Fixed Deposit a separate OD account is required to be opened by the customers. On successful opening
INB generates an Arrangement letter which is the customer’s copy and need not be signed by our Branches. The
closure of OD account on maturity or end of term of TDR/STDR/eTDR /
eSTDR will be done by the Home Branch. An sms to the borrower will be sent to this effect one week before the
234
account is due to be closed and Home Branch will be provided with a Report one week in advance and also on
date when the account will be due for closure.
(ii) Before maturity of deposit, Closure of account will be done on request by the Home Branch.
Loans Against SBI Dual Advantage Fund (DAF of SBIMF)

Objective/ Purpose
DAF investors above 18 years Minimum : Rs.25000/- Maximum :
Available at all the branches which are of age subject to following DAF held in Demat form: Rs 20
authorized to sanction LAMFU scheme. conditions: Lacs DAF held in Physical
i) Single/Joint holder(s) of SBI DAF form: Rs 10 Lacs.
(Maximum limit is inclusive of all
The Investor(s) should have an
loans borrowed by the
SB account of SBI.
applicant/borrower aga inst
iii) The SB account and DAF should
Shares & Securities held by
have identical name and PAN
him).
number. ROI: 1 Yr MCLR+
2.50% Spread
PAN Mandatory.
All series of DAF with debt

component of more than 80%
(including series to
be issued in future)
50% Overdraft. Lien on units of DAF (Both in
Margin is linked to the NAV or Market Tenor: Remaining maturity period Demat& Physical forms)
Value, whichever is less. of the DAF.
Interest to be serviced monthly
and Principal to be serviced on
or before the end of the loan
tenure.
Pre-payment charges/Penal
Interest: NIL
Other features
Pre-payment charges/Penal Interest: NIL. Cheque book, Debit- cum-ATM card, INB facility can be extended.
Loan account shall be opened under the same CIF under which the primary SB account of the
customer has been opened.
Loans Against SGBs (Sovereign Gold Bond)

Name of the Scheme Eligibility Amount of Loan
Rationale/ Objective/
Purpose
For meeting a) All individual or joint investors under Sovereign Gold Bond Minimum: Rs. 20,000/-
contingencies and Scheme holding the SGBs. Maximum: Rs.20 lacs
needs of personal ➢ Physical form: Must be issued through our Bank. per individual.
nature. Loan will not Note:
be sanctioned for ➢ Demat Form: i. While granting
speculative advance the operating
o The customer(s) must have demat account with SSL.
purposes. units shall ensure that
To garner business o In case of joint applicants, the Demat account and SB maximum Quantity of
under Loan against account should have identical name. 500 gms per person per
Securities portfolio & fiscal doesn’texceed.
to market new b) The loan applicant(s) should be properly introduced and The declarations to
tranche of SGBs should have fully KYC Compliant A/c before the loan is this effect shall be
aggressively, a new sanctioned. obtained from
product ‘Loan theapplicant at the
against c) The loan applicant(s) must have PAN. time of sanctioning
SGBs’ has been loan.
235
launched. d) Individuals who are 21 years of age with steady income
including ROI: 1 Yr MCLR+
2.00% Spread
Bank’s employees and pensioners. Submission of proof of
income by borrower will not be necessary. e)
Trusts/HUFs/Companies/Partnership Firms/Proprietary
concerns
holding Sovereign Gold Bond certificates are not eligible for
grant of
loan under the scheme.
f) Proper introduction of the borrower(s) and assessment of
minimum capacity to service the interest will be sufficient to
determine the eligibility.
g) NoLOAN AGAINST SOVEREIGN GOLD BONDS (SGB) will

be sanctioned to the third parties against the collateral security
of SGBs.
h) In
case the SGBs are held by natural/legal guardian on
behalf of a
minor, loans can be availed of by the guardian only for the

benefit of
the minor in line with the provisions of relevant law relating to
minors.
The natural/ legal guardian should sign an undertaking to this
effect.
35% of Market Value Overdraft or Demand Loan. Overdraft: 36 months. The SGBs is proposed
published by PMD, • Interest to be serviced monthly. to be valued based on
PBBU. the Market Value of 24
• Principal to be repaid on or before the end ofthe term. DL: 12 Caratpurity (995 gms.)
months. (Bullet-Repayment) Interest & Principal to be repaid on gold published by the
or before the end of the term. Precious Metals Dept.,
PBBU.
Penal Interest @2%
p.a. would be charged (irrespective of loan amount) over and
above the applicable interest rate on the overdue amount for
the period of default. The penal interest will not be levied if
part instalment or part EMI remains overdue.
SBI- Online EMI & SBI- Offline POS- EMI for Consumer Durable & E- Commerce Purchase
Objective/ Purpose
SBI- Online EMI & SBI- Offline POS- CSP/DSP / Salaried Non- CSP Minimum: Rs 8000/- Maximum:
EMI for Consumer Durable & E- customers / Non- Salaried Rs.
Commerce Purchase Customers / 100000/-
For Online Purchase of Consumer HNI/Premier Banking Customers Loan Amount: Equal to price of
Durables/ Merchandise at Amazon & / Existing Home Loan & Car the product purchased subject to
Flipkart portals Loan borrowers are selected maximum eligibility limit,
based on pre- decided criteria & available limit and minimum loan
For purchase of Consumer Durables at minimum CIBIL score. amount prescribed.
POS through use of SBI Debit Partial loan for a single
Card A digital loan product –“Online- Up to 3 Transactions (inclusive of transaction is not allowed. Full
both online and transaction amount will be treated
EMI” enabling pre-approved customers
off-line purchases) are eligible for as loan at one instance, provided
of our Bank to purchase consumer
EMI facility subject to maximum the required amount is within
durables on EMI from online
preapproved loan limit. the pre-approved loan limit.
portals(presently from Amazon and
Flipkart) was launched in May 2018. ROI: 2 Yr MCLR+
7.50% Spread
While enhancing the product features of
online-EMI, Bank has launched offline
236
EMI product –“POS -EMI” for SBI Debit
Card Holders” enabling thesame set of
eligible customers to purchase the
consumer durables on EMIat Point of
sales. i.e. at approximately 40000+ major
consumer durable brand outlets where
pine labs POS machines are deployed
across the country.
Margin NIL Tenor: 6/9/12/18 months. Not required

Moratorium: NIL INB/CBS to set SI to the
customer’s SB account while creating the loan
account for recovering monthly instalments.
Branches can also recover the instalments and
credit the amounts in these accounts for
regularising or closure of the account.
Interest rate: 2-year MCLR + 750 bps =
presently 15.85 %
p.a fixed for all tenures.
Penal Interest: Loan up to Rs 25000 –Nil
Loan > = Rs 25000
- @ 2% p.m. over and above the applicable Rate
of interest on the overdue/irregular amount This
charge is applicable monthly till the irregularity
persists.
Prepayment
penalty: 3% of prepaid amount.
Other features
On availing EMI facility using the Debit Card at POS or at online portals using registered mobile number, loan
a/c is opened through automated process at the concerned home branch of the customer, from the back end, by
IT Dept. (EIS/ CB-Dev).
The loan account will be closed with the recovery of last instalment automatically, if the closure balance exactly
matches with the instalment recovered through SI. If not branch to close the account manually by recovering the
closure amount from SB account of the customer
Back to Index page
237
SME ASSET PRODUCTS
1 What is Tarun Category under PMMY?
a) Loans upto Rs. 50000/- b) Above Rs. 50000/- to Rs. 5 lacs
c) Above Rs. 5 lacs to Rs. 10 lacs d) Above Rs. 1 lac to Rs. 10 lacs
2 Which of the following is not a variant in MUDRA scheme
a) Shishu b) Kishore
c) Varun d) Tarun
3 What are the activities covered under Stand-up India?
a) Trading, Services and b) Trade and services
Manufacturing
c) Manufacturing and Trade d) Manufacturing and services
4 What is the target group for Stand-Up India?
a) SC/ST b) Physically Handicapped
c) Women d) Both a and c
5 Maximum loan amount that can be financed under Stand-Up India is
6 Min loan amount that can be financed under Stand Up India is
a) > Rs. 10 lacs b) > Rs. 5 lacs
c) Rs. 1 lac d) None of the above
7 Max. Term Loan under SME Laghu Udyami is Rs. ….. lacs
a) Rs. 5 lacs b) Rs. 7.5 lacs
8 The maximum age criteria stipulated under SME Laghu Udyami
is___________.
c) 70 years d) No max age stipulated
9 The minimum score, an applicant should get to be eligible for availing finance
under SME Laghu Udyami is:
a) 50% b) 60%
c) 40% d) No such criteria
10 Under SME Laghu Udyami, in case of Term loan of Rs 5 lakhs and above, the
loan is repayable in installments up to a maximum period of …..
11 Under SME Laghu Udyami, working capital Assessment for Professional &
Self Employed is made as
a) 20% of their annual turnover b) 25% of their annual turnover
c) 50% of their Gross Income as d) 100% of their Gross Income as per IT
per IT Returns Returns
12 Which of the following is true with respect to SME Laghu Udyami?
a) 3 years validity for working b) It should be ensured that unit routes
capital limit with annual review entire sales realization through CC
account. During the annual review, if the
credit summation is less than 75%, then
a repayment schedule should be fixed
for the outstanding in suitable monthly
instalments.
c) Both CC and TL can be d) All of the above
sanctioned under the scheme
238
13 Frequency of submission of stock statement in SME Smart Score loan
a) Bi-Monthly b) Quarterly
c) Half yearly d) Annually
14 In respect of SME Smart Score, which of the following statement is correct?
a) The Chief promoter should be b) Quantum of Finance for Manufacturing
18 to 65 years of age unit is Rs 5.00 Lacs to Rs 50.00 Lacs.
c) Quantum of Finance for Trading d) Margin required is 25% for WC and 33%
unit is Rs 5 Lacs to Rs 25 Lacs. for TL Component.
15 The minimum amount of Loan that can be under SME e-Smart Score?
a) Rs.5 Lacs b) Rs.10 Lacs
c) >Rs.10 Lacs d) No Minimum amount, only max
prescribed
16 The maximum amount of loan that can be sanctioned to a Manufacturing unit
under SME Smart Score?
a) Rs.25 Lacs b) <Rs.100 Lacs
c) < Rs.50 Lacs d) No max limit but as per assessment
17 The maximum amount of loan that can be sanctioned under SME Smart Score
for a Trader / Service provider?
a) Rs.25 Lacs b) <Rs.50 Lacs
c) Rs.100 Lacs d) No max limit but as per assessment
18 The age criteria stipulated for the promoter/ applicant to avail a loan under
SME Smart Score is___________.
a) Min 18 Yrs- Max 65 Yrs. b) Min 18 Yrs- Max 60 Yrs.
c) Min 21 Yrs- Max 65 Yrs. d) No Upper age limit but min 18 years of
age
19 The maximum repayment period permissible for a term loan under SME Smart
Score is
a) 5 years excluding moratorium b) 5 years including moratorium period of 6
period of 6 months. months.
c) 7 years including moratorium d) 7 years excluding moratorium period of 6
period of 6 months. months.
20 The minimum score that an applicant should get in order to be eligible TO
avail a loan under SME Smart Score is
a) 60% (with a minimum score of b) 50% (with a minimum score of 45%
50% under each sub head) under each sub head)
c) 70% (with a minimum score of d) 75% (with a minimum score of 60%
60% under each sub head) under each sub head)
21 What is the minimum loan amount to be sanctioned under Asset Backed Loan
Scheme?
a) Above Rs. 5 lacs b) Above Rs. 10 lacs
c) Above Rs. 25 lacs d) Above Rs. 20 lacs
22 Under Asset Backed Loan (ABL) what is LTV on immovable property
a) 40% of realisable value b) 60% of realisable value
c) 75% of realisable value d) 50% of realisable value
23 What is the duration of submission of stock statements under ABL?
c) Yearly d) Half Yearly
24 At what intervals an Asset Backed Loan is to be reviewed?
a) Monthly b) Half Yearly
c) Yearly d) Quarterly
239
25 What is the LTV ratio to be maintained under ABL scheme?
a) For loans upto Rs 10 Crores: b) For Loans above Rs 10 Crores upto Rs.
60% of the realizable value 20 Crores: 50% of the realizable value
c) 60% of the realizable value d) Both a and b
26 Which of the following unit can be financed under ABL scheme?
a) CRA of SB-10 b) CRA of SB-9
c) CRA of SB-11 d) Both a and b
27 What type of facility can be sanctioned under ABL?
a) Cash Credit b) Term Loan
c) Dropline OD d) Both a & c
28 What is the maximum period of moratorium under ABL scheme?
c) 6 months d) No moratorium as it’s a dropline OD
facility
29 Under asset backed loan, property proposed to be mortgaged needs to be
within a radius of ____KM of the branch.
a) 10 b) 15
c) 20 d) 25
30 Under ABL & ABL CRE, Cash Margin for NFB Facility required is?
a) 25% b) 15%
c) 10% d) Margin is not required as the Drawing
Power is allowed against Collateral
Security.
31 Under ABL & ABL CRE, T I R should be obtained from two different panel
Advocate in case of the following?
a) Loans of Rs 25.00 Lacs & b) Loans above Rs 25.00 Lacs
above
c) Loans of Rs 50.00 Lacs & d) Loans of Rs 100.00 Lacs & above
above
32 What is the Periodicity of Inspection for ABL?
c) Half Yearly d) Yearly
33 Minimum Loan amount under ABL –CRE-RP
a) Rs. 10.00 lacs b) Rs. 25.00 lacs
c) Rs. 50.00 lacs d) No Minimum Cap
34 What is the Repayment structure under ABL CRE-RH?
a) For a period of 12 months to 84 b) For a period of 12 months to 96 months
months
c) For a period of 12 months to d) For a period of 12 months to 180 months
120 months
35 Under Aarogyam Healthcare Business Loan scheme floated for financing
a) For ventilator b) To import Vaccine of covid related
c) For Oxygen Plant in hospitals d) All the above
36 What is the maximum loan under Aarogyam Healthcare Business Loan
a) Rs. 10 Crores b) Rs. 25 Crores
c) Rs. 100 Crores d) Need Based
37 The minimum security for loans above Rs. 2 crores under Aarogyam
Healthcare Business Loan scheme is
a) 10 % b) 15%
c) Nil d) 25 %
240
38 What is the margin for term loan under Aarogyam Healthcare Business Loan
Scheme?
a) 33 % b) 25 %
c) 10 % d) Nil
39 Maximum Moratorium period that can be allowed for construction of hospital
sanctioned under Aarogyam Healthcare Business Loan scheme is:
____________.
40 CRA/CUE rating applicable in Aarogyam Healthcare Business Loan Scheme
a) SB/CUE – 6 b) SB/CUE- 9
c) SB/CUE – 7 d) SB/CUE - 10
41 Maximum Moratorium period that can be allowed for Brownfield
(Expansion/Modernization/Renovation) project sanctioned under Aarogyam
Healthcare Business Loan scheme is
42 Which of the following is Correct with respect to Aarogyam Healthcare
Business Loan scheme is
a) The loan can y be sanctioned b) The loan can only be sanctioned as
as TL/Cash Credit /BG/LC Overdraft.
c) The loan can only be d) The loan can only be sanctioned as TL
sanctioned as Cash Credit.
43 What is the collateral security to be obtained in case of loan amount above
Rs. 2 Crores in fleet finance scheme?
a) Minimum 10 % tangible b) Minimum 15 % tangible collateral
collateral
c) Minimum 5 % tangible collateral d) Upto Rs.5 cr. CGTMSE cover
44 In respect to the Repayment Program under Aarogyam Healthcare Business
Loan scheme is ?
a) Max.10 years excluding b) Max.8 years including moratorium period
moratorium period
c) Max.10 years including d) Max.8 years excluding moratorium
moratorium period period
45 In SME e-Smart Score(CLP), the limit assessed based on
a) 115 % of last year sales 25 % of projected sales
c) 100 % of last year sales 33 % of projected sales
46 Under ABL –RH, which immovable property is not eligible as security
a) SEZ Property b) Open Land outside urban limits
c) Industrial Property d) All of the above
47 Assessment of Working Capital limits under ABL CRE CP scheme will be done
as per
a) Assessed Bank Finance b) Traditional Method
c) Turnover method d) Cash Flow of the project
48 How many days are available under Perfection of security in ABL CRE-CP?
49 IN SME e-Smart Score (CLP) , which rating is applicable?

a) Only CRA b) Both rating applicable
c) Only CUE d) either CUE/CRA
241
50 In respect of SME Smart Score, which of the following statement is not

correct?
a) The Chief promoter should be b) Quantum of Finance for is Minimum
18 to 65 years of age above Rs 10.00 Lacs and Maximum
below Rs 50 Lacs.
c) Margin required is 20% for WC d) Quantum of Finance for Trading unit is
and 33% for TL Component. Rs 5 Lacs to Rs 25 Lacs
51 What is the validity of sanction of SME Open Term Loan?
52 What is the repayment period generally allowed under SME Open Term Loan?
53 Transport Operator with minimum of what number of vehicles are eligible for
SME Open Term Loan Facility?
a) 10 b) 15
c) 20 d) 25
54 Which of the following not eligible for Open Term Loan?
a) All units under manufacturing b) Manufacturing units not Banking with us
sector banking with us
c) Under Service Sector: d) All the above
Healthcare Industry, Hospitality
Industry and Transport
operators
55 Expand CRILC
a) Central Depository of b) Common Depository of
Information on large credits Information on large credits
c) Central Repository of d) Central Repository of Information on
Information on large credits letter of credits
56 If SSI unit intends to avail credit facility under SME Credit Card Scheme, what
type of collateral security will be taken by the bank?
a) Equitable Mortgage b) Regd. Mortgage
c) Not to be insisted upon d) Third Party Guarantee
57 DSCR full form
a) Deposit service coverage ratio b) Debt Service coverage Ratio
c) Discount service count Ratio d) Debit service coverage Rate
58 e-DFS on CLP is allowed for loan amount of
a) Above Rs. 10 lacs to Rs. 50 lacs b) Any amount
c) Above Rs. 10 lacs to Rs. 100 c) Above Rs. 10 lacs to Rs. 200 lacs
lacs
59 -----------has developed a Contactless lending platform (CLP) for smooth
sanctioning of loans above Rs.10 lakhs upto Rs. 100 lacs.
a) RBI b) SIDBI
c) NABARD d) SBI
60 Maximum loan amount under e-smart score is
61 Frequency of submission of stock statement in SME e-Smart score loan
c) Half yearly d) Annually
242
62 Expand CLP (developed by SIDBI)
a) Contactless lending point b) Corporate lending platform
c) Contactless lending platform d) Corporate lending Point
63 Minimum and maximum loan under Aarogyam (Non Metro) health care
business loan
a) Rs. 10 lacs and Rs. 100 lacs b) No minimum and Maximum Rs. 100 lacs
c) Rs. 10 lacs and Rs. 50 lacs d) No minimum and Rs. 100 crore
64 Minimum and maximum loan given under THIRD TRANCHE LOAN of PM Street
Vendor’s Atmanirbhar Nidhi scheme
a) Rs.10,000 to Rs. 15,000 b) Rs. 20,000 to Rs.50,000
c) Rs. 5,000 to Rs. 10,000 d) Rs. 10,000 to Rs. 25,000
65 Repayment period under PM Street Vendor’s Atmanirbhar Nidhi scheme
THIRD TRANCHE LOAN
a) 18 months to 36 months b) 12 months to 24 months
c) 6 months to 12 months d) 6 months to 24 months
66 Validity period of the scheme PM Street Vendor’s Atmanirbhar Nidhi scheme
3 rd Tranche loans Up to
a) Till 31.12.2021 b) Till 31.01.2022
c) Till 30.06.2022 d) March 31,2028
67 Interest subvention under PM Street Vendor’s Atmanirbhar Nidhi scheme
a) 5 % b) 4%
c) 3 % d) 7%
68 Minimum and maximum loan of OD amount under SME Finance for CAs under
CLP
a) Rs. 2 lacs to Rs. 25 lacs b) Rs. 2 Lacs to Rs. 10 lacs
c) Rs. 2 lacs to Rs. 10 lacs d) Rs. 2 lacs to Rs. 5 Lacs
69 Maximum loan of Term Loan under SME Finance for CAs under CLP in Metro
centres
a) Rs. 200 Lacs b) Rs. 25 Lacs
c) Rs. 50 Lacs d) Rs. 100 Lacs
70 Minimum loan amount under Bill discounting(Non LC) to MSMEs
c) Rs. 25 lacs d) Rs. 5 Lacs
71 Eligibility condition under Bill discounting(Non LC) to MSMEs
a) SB/CUE-1 to 8 b) Not NPA in 12 months
c) Not SMA-1&2 in CRILC d) All the above
72 The maximum loan amount under Bill discounting(Non LC) to MSMEs
a) 20 % of existing limit b) 100 % of invoice value
c) Maximum Rs.2 Crore d) Any of the above which ever is lower
73 What is the minimum and maximum loan under SME Marble Plus
a) More than Rs. 10 lacs to Rs. 10 b) More than Rs. 25 lacs to Rs. 10 Crs
Crs
c) More than Rs. 10 lacs to Rs. 2 d) More than Rs. 10 lacs to Rs. 5Crs
Crs
74 What is the hurdle rate under SME Marble Plus
a) SB-5/CUE-5 b) SB-9/CUE-9
c) SB-10/CUE-10 d) SB-7/CUE-7
75 What type of facilities can be given under SME Marble plus scheme
a) Cash Credit b) Term Loan
c) OD Drop line d) All the above
76 What is minimum collateral required if not covered under CGTMSE in SME
243
Marble plus scheme
a) 50 % b) 10 %
c) 25 % d) 33 %
77 What are the two Verticals created at Corporate Centre to deal with e-Dealer
Finance Scheme
a) SMEBU & TBU b) SCFU & PBBU
c) REHBU & SCFU d) SCFU & TBU
78 Under bank’s e-VFS scheme the letter “V” stands for
a) Vector b) Variable
c) Vendor d) Verifiable
79 Under SBI eDFS, the borrower/dealer will have the following advantages :
a) Low Interest Rates b) 100% financing of Invoices
c) Flexible Collateral terms d) All the above
80 SCFU full form in connection with e-DFS
a) Supply Creditors financing unit b) Sundry Creditors Financing unit
c) Supply chain finance unit d) Supply Chain funding unit
81 Under e-DFS scheme, term and conditions for tie up, e-DFS agreement, format
of letter of comfort are shared with
a) Industry Major b) Borrower
c) Dealer of the stock d) All the agents of the stock
82 e-VFS involves financing against
a) Stocks b) Borrower paid stocks
c) Receivables of vendors of d) Borrower stock and receivables
reputed Industry Majors
83 Operation unit of SCFU is located at
a) Nariman Point Branch b) Shivsagar Branch, Mumbai
c) Commercial Branch Mumbai d) Corporate Centre Mumbai
84 In the post sanction stage of a SME car loan, vehicle registration details can
be verified from the website .........
a) Vehicle.org.in b) Vahan.nic.in
c) RTA website d) Vehiclereg.gov.in
85 Flexi loan for Trade & Services minimum and maximum loan limits are
a) Rs 1 lac, Rs 50 Lacs b) Rs 10 Lacs, Rs 50 Lacs
c) Rs 15 lac, Rs 200 Lacs d) Rs 5 Lac to 100 Lacs
86 Maximum loan amount under e-Mudra
a) Rs.10,000/- b) Rs.25,000/-
c) Rs.50,000/- d) Rs.5,000/-
244
ANSWERS to MCQs – SME ASSET PRODUCTS
1 C 2 C 3 A 4 D 5 B
6 A 7 C 8 D 9 B 10 B
11 C 12 D 13 A 14 A 15 C
16 C 17 B 18 A 19 C 20 A
21 B 22 B 23 D 24 C 25 C
26 D 27 D 28 C 29 D 30 C
31 D 32 C 33 A 34 A 35 D
36 D 37 D 38 B 39 C 40 D
41 C 42 A 43 D 44 C 45 A
46 D 47 D 48 C 49 C 50 D
51 D 52 D 53 D 54 B 55 C
56 C 57 B 58 C 59 B 60 C
61 B 62 C 63 D 64 B 65 A
66 D 67 D 68 A 69 D 70 B
71 D 72 D 73 A 74 B 75 D
76 A 77 D 78 C 79 D 80 C
81 A 82 C 83 B 84 B 85 D
86 C
245
MSME PRODUCTS: 2023-24
1 What is the minimum and maximum amount of loan in case of SBI Fleet
finance scheme
a) Rs. 10 lacs and Rs. 10 crores b) Rs.50 lacs and Rs. 5 Crores
c) Rs. 10 lacs and Rs. 2 Crores d) Rs. 50 lacs and Rs. 2 crores
2 Civil Suit is to be filed immediately on approval but in any case, within a maximum
period of ………months from the date of approval
c) 9 months d) Immediately
3 What is the full form DSRA
a) Debt Service Revalue account b) Debt Service Reserve Account
c) Debt Service Reset account d) Debt Service Review Account
4 Minimum and Maximum loan under COMMERCIAL VEHICLE FINANCE
a) Rs. 10 lacs to Rs. 1 Cr b) Rs. 10 lacs to Rs.5 Crs
c) Rs. 10 lacs to Rs. 2 Crs d) Rs. 10 lacs to Rs. 50 lacs
5 Minimum CRA rating SME Open Term Loan in case of existing customers banking
more than 3 years with us
a) CRA6/CUE6 or ECR BBB b) CRA8/ CUE8 or ECR of BB
c) CRA7/ CUE7 or ECR of BB d) CRA5/ CUE5 or ECR of AAA
6 What is the name of the Pricing Tool introduced by the bank for exposure of Rs 50
crs and above Corporate Advances?
a) RIPAK b) DIPAK
c) Card Rating d) EBLR
7 What is the validity period of External credit rating obtained by the
Borrowers?
a) 12 months from the date of rating b) 15 months from the date of rating
c) 18 months from the date of rating d) 24 months from the date of rating
8 Who should approve the waiver of obtention of External Credit rating to borrowing
units?
a) DMD of the vertical b) Sanctioning authority
c) CGM of the Circle d) RCCC / CCCC
9 LTV% in SBI Asset Backed Loan is
a) 50 % of the realizable value. 65% of the realizable value.
c) 60% of the realizable value. 40% of the realizable value
10 PABL is targeted to
a) Sole proprietor and partnership b) Sole proprietor /Individual CA
c) Partnership firm d) Company
11 TReDS refers to
a) Trade Receivable Discounting b) Trade Receivable Debit system
System
c) Treasury Rate e Discountable d) Triple Rated e Discount Scheme
System
12 Which of the undernoted statements is true with respect to a proprietorship
concern?
a) As far as legal status is b) It is not necessary to obtain personal
concerned both the guarantee of the proprietor as proprietor
proprietorship firm and and his entire personal assets is liable for
proprietor in individual any debt towards proprietorship firm.
246
capacity are considered as
same
c) Both 1 & 2 are correct d) Only 1 is correct
13 For accounting purposes, why a proprietorship firm is required to prepare
a Balance Sheet?
a) There is no need for a proprietorship b) A proprietorship firm should prepare the
firm to prepare a balance sheet balance sheet and profit and loss account
of the firm separately to know the strength
and viability of the business run by the firm.
c) Only Profit & Loss account is required d) Proprietor's detailed statement on assets
to be prepared by a Proprietorship and liabilities is sufficient to access the
firm. status of the firm for the lender.
14 What should be verified through the Articles of Association of a Company?

a) The total borrowing of the Company b) The purpose of the loan is within the
is within the authorized borrowing scope of the object of the Company
limit.
c) Both 1 & 2 are correct d) Only 1 is correct
15 As per Companies Act 2013, what is correct for a Private Limited Company?
a) It must have a minimum of 2 b) It must have a minimum paid up capital of
members and a maximum of 200 Rs.2 lacs, a minimum of 2 members and
members a maximum of 100 members
c) It must have a minimum paid up d) It must have a minimum paid up capital
capital of Rs.1 lakh, a minimum of 2 of Rs.5 lacs, a minimum of 2 members
members and a maximum of 50 and a maximum of 200 members.
members
16 How does the Companies Act 2013 define an Associate Company?
a) The new Act defines an Associate b) The new Act defines an Associate
Company (say, A) of another Company (say, A) of another Company
Company (say, B) where B exercises (say, B) where B exercises significant
significant control over A (by control over A (by controlling at least 20%
controlling at least 25% of the total of the total share capital of A, or of the
share capital of A, or of the business business decisions under an
decisions under an agreement). agreement).
c) The new Act defines an Associate d) The new Act defines an Associate
Company (say, A) of another Company (say, A) of another Company
Company (say, B) where B exercises (say, B) where A exercises significant
significant control over A (by control over B (by controlling at least
controlling at least 15% of the total 37.5% of the total share capital of B, or of
share capital of A, or of the business the business decisions under an
decisions under an agreement). agreement).
17 In respect to a standalone Term Loans, the period of limitation is triggered from:

a) The date of execution of agreement. b) 3 years from Default in the payment of any
of the instalments or from the date of
acknowledgement of debt/ liability in
writing by the borrowers and the
guarantors or his/her authorized agents.
c) Within 3 years from the date of d) Revival letter not to be obtained in respect
execution of agreement of a Term Loan.
18 If A Ltd has equity capital of Rs. 4 cr out of which B Ltd. holds shareholding of Rs.
3 cr, what is the relationship between Company B & Company A?
247
a) B Ltd is the Holding Company b) A Ltd is the Holding Company of B Ltd.
of A Ltd
c) B Ltd & A Ltd are into the same line d) No relationship between these
of activity. Companies
19 For new connections, profiling reports from Cubic Tree Technology Solutions P Ltd has
been made mandatory for all aggregate exposures of
a) Rs.10 crores and above b) Rs. 5 crores and above
c) Rs. 25 lakhs and above d) Rs. 1 crore and above
20 At the time of putting up fixation of reserve price for sale of property under
SARFAESI Act, the valuation report should be:
a) Less than 6 months old. b) Less than three years old
c) Less than one year old d) Less than two years old
21 In a credit facility being proposed for a Partnership firm, a property is offered as a
mortgage by Mr. A, one of the partners, which was acquired by him through a Gift
Deed. The proposed loan amount is Rs. 80.00 lacs. Which of the undernoted
statement is correct?
a) One TIR needs to be obtained as the b) Such a property should not be accepted
loan amount is less than Rs. 1.00 as mortgage
crore.
c) The value of property should be more d) Two TIRs need to be obtained in the
than the loan amount proposed instant case
22 A title deed is deposited by the mortgagor on 15.02.2018. What may be the date
of letter of confirmation taken as part of EM?
a) 15.02.2018 b) 17.02.2018
c) 16.02.2018 d) Either b or c
23 What is the minimum and maximum loan amount in SBI Open Term Loan?
a) Rs. 10 lacs and Rs. 50 Crores b) Rs. 25 lacs and Rs. 10 Crores
c) Rs. 10 lacs and Rs. 25 Crores d) No Minimum and maximum ceiling
24 The Bank’s Loan Policy deals with the Bank’s approach to monitoring
a) Operational Risk b) Market Risk
c) Liquidity Risk d) Credit Risk
25 RBI has clarified the term “Exposure” for the purpose of Prudential
exposure norms include
a) All credit exposures not Investments b) Credit and Investments
c) All fund-based credit limits only d) All fund-based and Non-Fund based credit
limits only
26 Validity of Open Term Loan is
c) 1 month d) 12 months
27 As per Bank’s Loan Policy, no Bank Guarantee should normally have a maturity of
more than
28 ECR is not mandatory for exposures of less than Rs. _________
a) 10.00 crores b) 25.00 crores
c) 7.50 crores d) 50.00 crores
29 As per takeover norms, for exposures from Rs. 50.00 crores and above, ECR / CRA
should be ______ or better
a) SB-5 / AAA b) SB-9 / BBB-
c) SB-8 / BBB+ d) SB-7 / BBB
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30 What is PDM in revised PMMY Journey
a) Pratham Digital Memo b) Project Data Monitoring
c) Pratham Disbursement Memo d) Post Disbursement Memo
31 Maximum repayment available under Asset Back Loan scheme (ABL) is
a) 10 Yrs b) 20 Yrs
c) 5 Yrs d) 8 Yrs
32 Perfection of securities must be completed within _____ days of disbursement in
case of Takeover of Accounts.
a) 60 b) 30
c) 45 d) 90
33 What percentage of invoices are financed under e-DFS?
a) 90 % b) 80 %
c) 100 % d) 75 %
34 Maximum ceiling prescribed by the Bank for Individuals as borrowers is---?
a) Rs. 25.00 crores b) Rs. 50.00 crores
c) Rs. 100.00 crores d) Rs. 10 crores
35 Non-Fund Based facilities should not exceed ______ % of Bank’s total fund based
exposure
a) 150% b) 200%
c) 100% d) 50%
36 Term loans sanctioned and not availed within a period of _________ from the date
of sanction need revalidation.
37 The undernoted measure/(s) may be taken as a step towards controlling NPA
Accretion
a) Tightening of post sanction credit b) Dynamic Review of Internal Rating
process
c) Introduction of a system that will d) All of the above
provide Early Warning Signals
38 Whether we can permit waiver in the prescribed Loan Policy norms
a) Yes, Sanctioning committee can give b) No
c) Yes, based on sound commercial d) There is authority structure covering
considerations that are agreed after delegation of power to permit such
careful evaluation of individual waivers, they can give waiver without
cases considering commercial considerations &
careful evaluation of individual cases
39 Stressed Assets Resolution Group (SARG) focuses on which type of accounts
a) NPA Accounts b) SMA Accounts
c) Non-Performing Assets, and assets d) Non-Performing Assets, and assets
under stress (including SMA-2) under stress (including SMA)
40 Under Financial Due Diligence we have to verify following documents

a) The financials of the main company b) The financials of the main company only
and its major associate / sister should be reviewed
concerns should be reviewed, as far
as possible, on the basis of
provisional financials of the concerns
on a common date
249
c) Verification of statutory return will not d) The financials of the main company and its
be covered major associate / sister concerns.
Verification of Income Tax, Sales Tax,
Excise Returns, and GST return etc. must
also be ensured
41 Repayment Tenure in PABL fixed
42 Opinion Reports on Borrowers and Guarantors should be updated at ________
interval
a) Every 2 years b) Annually
c) Every six months d) Once in three years
43 Specified Borrower under Enhancing credit supply for large borrowers through
market mechanism are defined by RBI As per guidelines, if any unit is having
Aggregate Sanctioned Credit Limit (‘ASCL’) of more than________ it will be
considered as Specified borrower"
a) Rs. 25,000 Crs at any time during FY b) Rs. 25,000 Crs at any time during FY
2017-18, Rs. 15,000 Crs at any time 2017-18
during FY 2018-19, Rs. 10,000 Crs
at any time from April 1, 2019
onwards
c) Rs. 15,000 Crs at any time during FY d) Rs. 10,000 Crs at any time from April 1,
2018-19 2019 onwards
44 Credit Risk Assessment (CRA) to be reviewed at half yearly intervals for units
having CRA
a) SB-9& below b) SB-10& below
c) SB-11& below d) SB-15& below
45 Bank can resort to sale through private treaty when sale through e-auction fails.
The minimum number of attempts of sale through e-action before going for sale
through private treaty is
a) 2 attempts for above 1 cr of property b) 3 attempts for above 1 cr of property value
value and 1 attempt for up to 1cr of and 1 attempt for up to 1cr of property
property value value
c) 1 attempt for both above 1 cr and up d) No. It can’t sell through private treaty
to 1 Cr of property values
46 What is the cut off limit for classifying a borrower as non-Co-operative?
a) Rs.5 Cr & above Fund based limits b) Rs.5 cr & above fund based and non-
fund based limits
c) Rs 1 crore and above Fund based d) Rs.50 crs and above Fund based limits
limits
47 How many Credit Information reports is/are required for processing unsecured
loans limit of Rs.3 lacs?
a) 1 b) 3
c) 2 d) Not required
48 What is SME 12 under SME Documentation
a) To be obtained during Ad-hoc b) SME 12 is a link letter and is to be obtained on
limit shifting from non-SME documents to SME
documentation.
c) To be obtained when Overdrawing d) None of the above
permitted
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49 What is Unconditional Cancellability Clause in the documentation?
a) Cancellation of Drawing power b) Bank reserves the absolute right to cancel
limits( either fully or partially ) unconditionally
without prior notice
c) Demand of outstanding limit d) No such clause
50 What is the purpose of 'Annexure F' in the process of accepting an immovable
property as a security towards a credit facility being sanctioned?
a) Checklist on scrutiny of TIR by the b) Checklist on identification and physical
branches verification of property
c) Report of Investigation of Title in d) Certificate of title to be submitted by the
respect of immovable property advocate
51 A proposal for sanction of various limits of ABC Put Ltd is being undertaken by
appraising Officer in May 2018.The unit will be involved in manufacturing of
napkin papers. The project is likely to start commercial operation by
31/12/2018.The CRA of the unit will be based on which of the following Financial
Statements?
a) Projected 31.03.2019 b) Projected 31.03.2020
c) Projected 31.03.2021 d) None of the above is correct
52 Which statement is true with respect to registration of an LLP (Limited Liability
Partnership)?
a) No registration is required for an LLP. b) Registration for an LLP is optional.
c) Every LLP must register itself with d) LLP to be registered under the Indian
the Registrar of Companies. Partnership Act.
53 Maximum loan amount in PABL is
a) Rs. 10 lakhs b) Rs. 20 Lakhs
c) Rs. 25 lakhs d) Rs. 50 lakhs
54 Subsequent to creation of EM, is a fresh TIR required after every three years?
a) Fresh TIR has to be obtained every b) In states / UTs where issuance of EC is not
three years. in vogue, fresh TIR has to be obtained
every three years
c) No requirement of obtaining fresh d) EC needs to be obtained every three
TIR after creation of EM. years.
55 If the sale deed of a property proposed to be mortgaged has been executed by a
POA holder, the undernoted precaution is required
a) Registration of POA is mandatory b) It is advisable to obtain a written
irrespective of Principal being a communication / confirmation of Principal
resident or NRI. to the effect that he / she has granted the
POA, and that it is still in force.
c) Vetting from Law Department not d) No separate precaution required as TIR is
required if loan amount is less than taken from panel advocate as per extant
Rs. 1 crore. instructions.
56 What are the guidelines for accepting a property, whose title deeds are in
vernacular language?
a) Title deeds in vernacular language not b) Title deeds in vernacular language may
to be accepted under any be accepted after vetting by Law
circumstances. Department.
c) It the title deeds are in vernacular d) 2 TIRs to be obtained if title document is
language, full particulars of the title in vernacular language
deeds in English signed by the
Bank's empaneled advocate should
be obtained and kept on record.
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57 What type of security interests are required to be filed with CERSAI?
a) Only mortgages created by deposit of b) All types of mortgages created by the
title deeds. Banks.
c) Hypothecation charge on plant and d) Both b & c are correct
machinery, stocks, debt including
book debts
58 Which of the undernoted step /(s) should be taken to prevent mortgage of forged
and fake documents?
a) Direct the advocate to procure b) The identity of the borrower should be
certified copies of the title deeds and verified.
compare the certified copies with the
original documents.
c) Wherever possible the genuineness d) All of the above are correct.
of the documents, relating to the
property be got confirmed from the
concerned local offices/ authorities.
59 Preparation of Financial Statement is the responsibility of the management. What
are the responsibilities of the Independent / Statutory Auditors?
a) To express an opinion on the b) Comments on the compliance of the
financial statement various Acts, Accounting Standards etc.
c) Assurance for True and Fair d) All the above
representation of financial
statements
60 After receipt of Audited Financial Statements, the first action required to be
taken by the credit officers is?
a) Confirm about the genuineness of b) Preparation of CMA
the financial statements
c) CRA Rating is to be carried out d) Discuss the performance with the unit
61 Whether Fund Flow Statement is part of Financial Statements?

a) No b) Yes
c) May be d) May not be
62 Capital mentioned in the Balance Sheet of a company needs to be verified with
a) RBI b) Audited Financial Statement filed with
Registrar of Companies
c) GST Return d) None of the above
63 Why do CMA forms continue to be used in assessment?
a) Credit officers and relationship b) They are very useful in simplifying the
managers are familiar with the forms representation of financial statements,
and find them easy to use. clarifying their content and providing a
clear understanding of the credit
assessment’s purpose
c) Companies are familiar with the d) There have been no other forms issued to
information which needs to be entered be used by the RBI
in the forms and provide the required
data.
64 Debt Service Coverage Ratio (DSCR) should be used as one of the factors while
issuing which type of BG?
a) BID Bond b) EPCG
c) Deferred Payment Guarantee d) DSCR is not required for BG assessment
252
65 Under SME Laghu Udyami Scheme, Working capital Assessment for Professional &
Self Employed is made as -----
a) 20% of their annual turnover b) 25% of the annual turnover
c) 50% of their Gross Income as per IT d) 100% of their Gross Income as per IT
Returns Returns
66 A builder, who is constructing a Residential Project has approached for sanction of
working Capital Facility, which of the following methods will be used for
assessment of working capital limit?
a) Projected Balance sheet Method b) Projected Turnover Method
c) Cash Budget Method d) Builder Finance is not permissible as per
bank`s extant instructions
67 Relation between Owner of the property and power of agent?
a) Agent and Principal. b) Principal and Agent
c) Bailor and Bailee d) Lessor and lessee
68 The Current Ratio of a unit has declined from 1.65 to 1.35. What could be the
possible reasons for decline?
a) Investment in fixed assets b) Increase in Current Liabilities
without availing any Term
Loan
c) A major portion of trade receivables d) All of the above
converted into Non-current assets
69 Term loans are to be repaid out of future earnings of the unit. Working capital loans
are to be repaid out of ……………….?
a) Realization of fixed assets b) Profits
c) Realization of non-core assets d) Realization of current assets
70 A term loan account turned irregular on 31.12.2021 due to application of interest.
The borrower regularized the account on 15.01.2022. Whether irregularity report is
required to be submitted?
a) Yes, for January 2020 b) No irregularity reporting is required.
c) Yes, for December 2021 and d) None of the above
January 2022
71 A term loan is an advance for a longer period intended mainly for financing?
a) Acquisition of fixed assets b) Replacement of high debt cost
c) Shoring up of NWC d) All of the above
72 In a term loan proposal, if the proposal involves a new process or new
technology, a ….. Report by a competent outside agency is essential
a) Economic Viability b) Commercial Viability
c) Technical Feasibility d) Managerial competency
73 A customer walks in and seeks a term loan for putting a new textile mill in that area.
There are 50 such mills in that area & more than 60% of them are sick, then?
a) Go ahead with the appraisal process. b) Adopt a cautious approach, seek further
information before taking a final decision
c) Reject the proposal straightaway. d) All of the above
74 After commencement of commercial production in case of term loan which of the
following statement is required to be submitted?
a) FSMTL 1 b) FSMTL 2
c) FSMTL 3 d) None of these
75 You have sanctioned a term loan to a company for an expansion project. A portion
of the project cost amounting to Rs 10.00 crores is to be met by internal accruals
253
during the current year. The company has repayment obligation of Rs 4 crores
towards existing term loans during the year. The internal accruals up to the first
half of the year are Rs 3.00 crores. Which of the following statements is the most
appropriate for this situation?
a) While there is a possibility of shortfall, b) The availability of funds for project
it is too early to think of any action. implementation does not face any
Actual amount of internal accruals constraints
would be known only after year end
c) The overall requirement of funds from d) Difficult to say anything at this stage
internal accruals is Rs 14.00 crores for
the current year. Going by the internal
accruals up to the first half of the year,
there is a likelihood of shortfall and
alternative means of financing need to
be identified.
76 When a regular Bank guarantee limit is sanctioned, which of the following
documents is required to be obtained?
a) Omnibus Counter Guarantee b) SME 5
c) Counter Guarantee d) None of the above is required to be
obtained
77 Bank Guarantees in respect of raw material supply favoring NSIC on behalf of SME
customers is categorized as?
a) Performance Bank Guarantee b) Financial Bank Guarantee
c) Deferred payment Guarantee d) None of the above is correct
78 Stock Audit report of a Borrowing unit mentions that the inventory level shown in
the stock statement has been substantially higher than the actual level found in the
audit. You have observed that the drawing power works out to be substantially
lower and the account would be rendered irregular. What is the most appropriate
action need to be taken by you?
a) Wait for the next stock statement and b) Examine the matter closely. Have a
ask the auditor to verify the position detailed discussion with the borrower and
with reference to the new stock the auditor. Analyze the borrower’s
statement explanations and assess if those are
justified. Finally, take action as
appropriate.
c) Immediately reduce the drawing d) Do nothing because reduction in drawing
power as indicated in the stock audit power would lead to irregularity in the
report account which may ultimately lead to the
account becoming NPA
79 Net Working Capital (NWC) can be calculated as?
a) Long Term Sources - Long Term uses b) Total Current Assets - Total Current Liabilities
c) (Net worth +Term Liabilities)- (total d) Any of the above
Assets- Current Assets)
80 Semi-finished goods should be valued at?
a) Cost of purchase b) Cost of production
c) Cost of production or selling price ord) Cost of goods sold
market price or Govt. controlled
rates, whichever is the lowest
81 The objectives of irregularity reporting are
a) To keep the concerned authority b) To seek confirmation of irregularity from
informed of the position of irregular appropriate authority
254
accounts
c) To put forth/ evolve plan of action for d) All the above
regularizing irregularity in the account
82 What is the periodicity for reporting of irregularity in NPA accounts?
a) First reporting by 10th of subsequent b) Yearly reporting to Sanctioning Authority
month after NPA classification for information.
c) Both 1 & 2 d) None of the above
83 An account turned NPA as on 31.03.2015. The present outstanding in the account
as on 31.03.2018 is Rs.60 lacs. The available security value as on 31.03.2018 is Rs.35
lacs. What will be the provision amount as on 31.03.2018 as per IRAC norms?
a) 25 b) 39
c) 60 d) 6
84 What is the inventory holding period in months for a unit with sales of Rs. 49.60
lakh, inventory of Rs. 6.50 lakh, cost of goods sold Rs. 39.00 lakh and trade
receivables of Rs. 12.40 lakh?
a) 1 month b) 1.57 months
85 Under the provisions of SARFAESI Act, borrower's Right to Redeem back the
charged properties, after payment of bank's entire dues, is available up to which
stage of SARFAESI action?
a) Borrower may redeem the charged b) Borrower may redeem the charged
properties at any stage of SARFAESI properties only before bank's action under
Action after payment of bank's entire Section 13(4) of SARFAESI after
dues. payment of bank's entire dues
c) Borrower's right to redeem the d) Borrower cannot redeem the charged
charged properties after payment of properties from the Bank after initiation of
entire dues is limited to publication of SARFAESI Action
Sale Notice by the Bank.
86 A working capital limit of Rs. 25.00 lacs was sanctioned to a unit in May 2014, which
slipped into NPA on 30.04.2017. The documents are valid up to 24.05.2017. Which
of the undernoted statement is true in this case?
a) Notice under Section 13(2) of b) If the notice under Section 13(2) is issued
SARFAESI Act may be issued before on 05.05.2017, limitation period shall be
24.05.2017. automatically extended by 60 days from
date of notice.
c) Suit for recovery of bank's dues d) Both a & c are correct.
should be filed immediately, but in
any case, before 24.05.2017.
87 In respect of filing of suit before Debt Recovery Tribunal for recovery of Bank’s
dues, which of the undernoted statements are true?
i. Call up notice to be served on borrowers/ guarantors through Bank’s advocate
demanding payment of Banks dues within 30 days of notice.
ii. The suit application to be filed needs to be vetted by Bank’s Law Officer.
iii.Loan outstanding may not be necessarily transferred to recalled assets account.
iv. In case Bank/ Borrower or any other party is aggrieved by the final decree given
by DRT, appeal may be filed in DRAT (Debt Recovery Appellate Tribunal) within 30
days from the date of receipt of order of DRT.
a) (ii), (iii) & (iv) are correct b) (i) & (ii) are correct
c) (i), (ii) & (iv) are correct d) All are correct.
255
88 What do we mean by the term 'Attachment before Judgment'?
a) The uncharged assets cannot be b) The name of the legal heirs must be
attached by the court for recovery of impleaded in the court case after death of the
bank's dues guarantor.
c) The charged assets may be attached d) The uncharged assets may be attached by the
by the court for recovery of bank's dues court for recovery of bank's dues subject to the
condition that charged assets are insufficient to
cover the entire amount due to the Bank.
89 Identification of accounts for exit is done by:
a) Circle Credit Officer b) DGM [Business] or Deputy General Manager
[SME] as the case may be.
c) Relationship Manager /Officer d) External Screening Committee
maintaining the accounts.
90 Exit Budget will be finalized based on ………..approach
a) Bottoms Up b) Pyramid
c) Horizontal d) Distributive
91 Action under Section 13(4) can be initiated after giving notice under Section 13(2)
of SARFAESI Act. Which of the undernoted statement is true in this regard?
a) Action under Section 13(4) can be b) If any one of the notices under Section
initiated after 60 days of issuance of 13(2) is returned undelivered, action under
notice under Section13 (2). Section 13(4) can be initiated after 60 days
of publication of contents of demand notice
in two newspapers.
c) Subject to account remaining within d) All 1, 2 & 3 are correct.
limitation period there is no outer limit
for initiation of action under Sec 13(4)
after issuance of notice u/s 13(2).
92 Before taking possession under Section 13(4) of SARFAESI Act, is it mandatory to file an
application before the DM under Section 14?
a) Yes. It is mandatory. b) Application before DM required only if the
Authorized Officer foresees a resistance in
taking over physical possession
c) No. it is not mandatory. d) Both b and c are correct.
93 Can the demand notice under Section 13(2) of SARFAESI Act be served through Hand
Delivery?
a) Yes, it may be served through hand b) No, hand delivery is not permitted
delivery.
c) It is for the Authorized Officer to take a d) A view may be taken by the Controller of the
view. branch.
94 It has been observed by the Field Officer that Stocks of a particular unit having CRA of SB-
8, enjoying limit of Rs 5 Crores are stored in multiple Godowns located in different places,
then what should be the course of action.
a) Inspection of all the Godowns should be b) Inspection of the all the Godowns should be
conducted simultaneously or on the same completed in phase wise during the period of
day. a month.
c) Since Inspection is not possible, d) As per the guidelines Stock Audit should
waiver should be obtained from SA be carried out annually of such unit.
95 What is the relevance of stock statement in the administration of FBWC limits?
a) Stock statement contains information b) Based on a scrutiny of stock statement does
which is “good to have” for the bank, a bank decide whether to renew a FBWC limit
though not “must have”
c) Submission of stock statement is a d) Stock statement contains details of
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statutory requirement for availing FBWC inventory, receivables and creditors under
limits LCs which are necessary to compute the
drawing power which regulates the amount
that can be drawn from the FBWC account
96 Standalone regular term loan should be reviewed?
a) Annually b) Half yearly
c) Once in 3 years d) No review required
97 A regular raw material supplier to TATA Motors approaches for credit facilities against
TATA Motors receivables. Which scheme will be best suited to the applicant?
a) ABL b) e-VFS
c) e-DFS d) m-DFS
98 Internal Rate of Return is---?
a) Highest return for the project b) Maximum possible return on a term loan
c) Rate of interest at which then highest d) Rate of interest at which then lowest return on
return on the project is feasible the project is feasible
99 The following is not true in respect of a term loan?
a) Stipulated D/E ratio needs to be b) The term loan, after sanction, can be
maintained throughout the utilized for any purpose which the borrower
implementation period deems fit
c) Normally, the tenure of the loan d) The term loan can also be released on
should not exceed ten years reimbursement basis
100 Terminal value of the project is ---?
a) Closing inventory held at the time of b) Market value of assets at the time of
liquidation liquidation of the company
c) Residual or salvage value of the assets d) WDV of Fixed assets when the project is
at the end of the estimated life of the terminated
project
257
Answer Key
1 B 21 D 41 B 61 A 81 D
2 A 22 D 42 B 62 B 82 C
3 B 23 B 43 A 63 B 83 B
4 D 24 D 44 C 64 D 84 D
5 B 25 B 45 A 65 C 85 C
6 B 26 D 46 B 66 C 86 D
7 B 27 A 47 C 67 B 87 B
8 D 28 D 48 B 68 D 88 D
9 C 29 D 49 B 69 D 89 C
10 B 30 A 50 B 70 C 90 A
11 A 31 B 51 B 71 D 91 D
12 C 32 D 52 C 72 C 92 D
13 B 33 C 53 B 73 B 93 A
14 A 34 C 54 B 74 C 94 A
15 A 35 C 55 B 75 C 95 D
16 B 36 C 56 C 76 A 96 A
17 B 37 D 57 D 77 B 97 B
18 A 38 C 58 D 78 B 98 C
19 B 39 C 59 D 79 D 99 B
20 C 40 D 60 A 80 C 100 C
258
SME – Others
1 CGTMSE stands for
a) Credit Guarantee Trust for b) Credit Guarantee Trust for
Medium and Small Enterprises Manufacturing & service Enterprises
c) Credit Guarantee Trust for Micro d) Credit Guarantee Fund Trust
and Small Enterprises for Micro and Small Enterprises
2 Two CIC report is required for Secured Loans other than Specified
securities for Limit > than______?
a) Limit > Rs. 10 lacs b) Limit > Rs. 5.00 Crs.
c) Limit > Rs.1.00 Cr. d) Limit > Rs. 2 lacs
3 CGTMSE set up by
a) NABARD b) SIDBI
c) RBI d) SIDBI &Govt. of India
4 What is the maximum loan amount that can be covered under CGTMSE
sanctioned to Retail Traders?
a) Not to be covered b) Rs. 200 lacs
5 CERSAI has been established by the Central Government under
___________Section and under Section 25 of the Companies Act,
a) Sec 20(1) of SARFAESI Act b) Sec 20(1) CERSAI Act 2002
2002
c) Sec 20(1) Central Registry Act d) Sec 20(1) SARFAESI Act 2000
2002
6 CERSAI has been established by the Central Government under Section 20(1) of the
SARFAESI Act 2002 and under Section 25 of the Companies Act of the Companies
Act, for the purpose of registration of all security interest over property,
transactions of Securitisation and asset reconstruction, registration in CERSAI site
to be done with in ____ days
c) 360 days d) immediately
7 The filing with CERSAI is to be done individually, for each mortgage created in the
Bank. The responsibility for doing so rests with the ------------
a) Credit Processing Cells b) RBO
c) Branch d) a&c
8 SME-1 is
a) Letter of Arrangement b) Agreement of Loan Cum
Hypothecation
c) Guarantee Agreement d) Link Letter
9 SME-2 is
a) Letter of Arrangement b) Agreement of Loan Cum hypothecation
c) Guarantee Agreement d) Link Letter
10 SME 3 is
a) Letter of arrangement b) Guarantee Agreement
c) Agreement of loan cum d) Supplemental agreement of loan cum
Hypothecation Hypothecation
11 SME-12 is
a) Letter of Arrangement b) Link Letter
c) Agreement of Loan Cum d) Revival Letter
Hypothecation
12 R & DB branches handle SME proposals up to Rs. __________ Crores
a) Rs. 5 crores b) Rs. 25 crores
c) Rs. 50 crores d) Rs. 100 crores
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13 As per MSMED Act 2006, A Small Service Enterprise is one where the
investment in equipment is
a) 25 lacs to 5.00 Crore b) Less than Rs10 crs and Less than 50
crs of turnover
c) 5.00 crore to 10 Crores d) 2.00 Crore to 5.00 Crore
14 Facility wise Rating is applicable for ……..
a) Simplified Model Up to b) Simplified Model above Rs.5.00 Crs
Rs.5.00 Crs
c) Regular Model Up to Rs.5.00 d) Regular Model above Rs.5.00 Crs
Crores
15 A document should never be ante-dated. If a date on the document appears to be
prior to the date of stamping or the date of purchase of stamps, such document
would be treated as invalid on the grounds that --------------
a) It has not been duly stamped b) Not adequately stamped
c) Can be rectified at Sub Reg d) None of the above
Office
16 Before execution of documents the signatures of the borrowers need to be
tallied with that on the -------------
a) To be attested from Notary b) Application form
c) From other kyc documents d) Not necessary to tally
17 Whether a document can be executed by different persons on different
dates?
a) Yes b) No
c) With approval of Sanctioning d) Deviation cannot be permitted
Authority for deviation
18 If the executants of the documents is an illiterate person, his left hand thumb
impression is obtained. In case of women
a) Right hand thumb impression, b) Any thumb impression
by convention
c) Only left-hand thumb for all d) Similar to male
19 Where the Loan Documents can be executed?
a) RACPC/ Branches b) Special Document Execution Desk
c) Applicant’s residence / d) Any of the above
business place/ mutually
agreed place by MOBILE
TEAM
20 Precautions have to be taken to confirm the genuineness of “lost title deeds”?
a) Lodging FIR b) Advertisement in prominent national
newspaper
c) Advertisement in prominent Local d) All the above
newspaper
21 Field Officer has to take precaution and follow the procedure which is
mentioned as per Section 12 of Stamp Act. The particular section deals
with..........
a) Cancellation of stamps b) Execution of documents
c) Proper stamp duty d) All the above
22 Where collateral security by way of deposit of title deeds is required to be
obtained at Branches situated at non-notified centers, it would be necessary
to arrange for its creation at the Branch located at the nearest notified center.
In this connection, How the Title deeds and the legal opinion have to be sent
to the Branch at the non-notified centers?
a) By Regd insured post to the b) Through borrower in sealed cover
branch
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c) By branch staff d) Any of the above
23 All title deeds and mortgage documents held against advances must be kept
in the fire proof cabinet under
a) Joint custody b) Single custody
c) Along with cash and other d) Along with Branch Documents by BM
valuables only
24 What is full form of NCGTC
a) National Credit Guarantee b) National Cooperative Guarantee Trust
Trust Company Company
c) National Corporation d) National Common Guarantee Trust
Guarantee Trust Company Company
25 DSCR full form
a) Debt Service coverage Ratio b) Deposit service coverage ratio
c) Discount service count Ratio d) Debit service coverage Rate
26 Please arrange the following in the right order:
i)Assessment ii) Appraisal iii) Sanction iv) Recommendation
a) ii), iv), i) & iii) b) i), iv), ii) & iii)
c) iv), ii), i) & iii) d) i), ii), iii) & iv)
27 Expand CRILC
a) Central Depository of b) Common Depository of
Information on large credits Information on large credits
c) Central Repository of d) Central Repository of Information on
Information on large credits letter of credits
28 What is the population limit for classifying as Rural under PMEGP?
a) 10000 b) 20000
c) 1000 d) 2000
29 The margin for under PMEGP for general category
c) 5% of the project cost d) 10% of the project cost
30 Under PMEGP Scheme who are not part of Special Category for benefit of
higher subsidy and lower margin?
a) SC/ST/OBC/Minorities b) Women/North Eastern Region/Hill and
Boarder areas
c) Ex serviceman d) None
31 Under PMEGP, the maximum cost of the project/unit admissible under
manufacturing sector is-----------
32 Rate of Subsidy for Ex-Serviceman in rural area under PMEGP is
c) 35% of the project cost d) Cannot be financed under PMEGP
33 The maximum cost of the project/unit admissible under business/service sector

under PMEGP is
a) Rs. 10 lakhs. b) Rs. 15 lakhs.
c) Rs. 20 lakhs. d) Rs. 25 lakhs.
34 The objective of introduction of PMEGP was to generate employment
through---
a) Establishment of micro b) Establishment of micro and small in
enterprises in rural as well as rural as well as urban areas
urban areas
c) Establishment of small d) Establishment of micro and small in
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enterprises in rural areas rural areas
35 For setting up of project costing above Rs.10 lakh in the manufacturing sector and
above Rs. 5 lakhs in the business /service sector under PMEGP, the beneficiaries
should possess at least ___________ pass educational qualification
a) 10th standard b) VI standard
c) VIII standard d) NO such condition
36 What is the quantum of bank finance under PMEGP
a) 90% in general category b) 95% in special category
c) Both a and b d) None of the above
37 Rate of Subsidy available for General category customers for setting up of
micro enterprises in urban area under PMEGP is
a) 5% of project cost b) 5% of loan amount
c) 15% of loan amount d) 15% of project cost
38 Rate of Subsidy available for Special category customers for setting up of
micro enterprises in Rural area under PMEGP is
a) 25% of the Project cost b) 35% of the Project cost
c) 45% of the Project cost d) 50% of the Project cost
39 EBLR Means :
a) Extreme Bench Mark Lending b) Earning Before Lending Rate
Rate
c) External Bench Mark Lending d) Easy Business Liquidity Return
Rate
40 Nayak Committee Method is applicable for Working Capital limits upto ?
a) Rs. 25 lac b) Rs. 1 Crore
c) Rs. 50 lac d) Rs. 5 Crores
41 What is the TIME NORMS fixed by our Bank for sanction of Loans upto Rs.25,000/-
under SME/Small borrowers, etc. from the date of receipt of application in complete
set
a) 2 weeks b) 4 weeks
c) 6 weeks d) 8 weeks
42 Under Credit Monitoring Arrangement (CMA), information under Form III
represents
a) Operating statement b) Analysis of balance sheet
c) Funds flow statement d) Particulars of existing/ proposed
limits from the banking system
43 Under Credit Monitoring Arrangement (CMA), information under Form
V represents
a) Operating statement b) Analysis of balance sheet
c) Funds flow statement d) Particulars of existing/ proposed limits
from the banking system
44 Prescreening of prospective new connections for exposure Rs.5 cr and
above has to be referred to
a) CRISIL b) Moodys
c) Cubictree Technology d) Any of the above
Solutions Pvt Ltd
45 Under SME Documentation, Letter of Arrangement has to be stamped as an
agreement
a) True b) False
c) Depends upon the State d) Need not be stamped
where the document is
executed
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46 Under priority sector, banks should not charge penal interest for loans up to
a) Rs.20,000 b) Rs.25,000
c) Rs.10,000 d) Rs.50,000
47 A Branch can issue a bank guarantee for a maximum period of
a) 18 months b) Upto 10 years with the permission of
Controlling Authority
c) Beyond 10 years with d) Beyond 10 years with 100% margin with the
100% margin permission of Controlling Authority
48 FFR‐I (Financial Follow-up Report‐I) needs to be submitted by the borrower
.......
a) Within 67 days from the close b) Within 67 days from the close of half‐
of a quarter year
c) Within 52 days from the close d) Within 52 days from the close of half‐
of a quarter year
49 In respect of properties acquired through Gift Deed, how may TIRs are
required to be obtained?
a) 2 TIRs to be obtained if the b) 1 TIR is required to be obtained
proposed exposure is Rs. 1
crore and above.
c) 2 TIRs to be obtained in such d) 2 TIRs to be obtained if the proposed
cases irrespective of loan exposure is Rs. 2 crores and above.
exposure
50 At the time of accepting a property as mortgage, how many chain documents
must be obtained?
a) There is no purpose of obtaining b) All chain documents must be obtained.
any chain document.
c) Where all the original chain d) Both 2 & 3 are correct.
documents are not available,
minimum previous two title deeds
should be obtained along with a
declaration explaining non
availability of the original title
deeds in respect of past
transactions.
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Keys
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Q
D B D D A D D A B B
ANS
11 12 13 14 15 16 17 18 19 20
Q
B C B D C B A A D D
ANS
21 22 23 24 25 26 27 28 29 30
Q
A A B A A A C B D D
ANS
31 32 33 34 35 36 37 38 39 40
Q
B C A A C C D B C D
ANS
41 42 43 44 45 46 47 48 49 50
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A B C C A B D C C D
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264
Agri Advances and Products
1 What documents should be taken at the time of review of KCC limits?

a) Land records b) Arrangement letter duly accepted by
the borrower
c) Simple declaration from the farmer d) None of these
2 Which of the following CIC reports to be verified before processing the KCC
Proposal of above Rs.3.00 lakhs ?
a) CIBIL b) CRIF HIGHMARK
c) Both A& B d) Either A or B
3 In case of KCC Limits, Waiver of Collateral Security is available for limits upto
Rs._______?
a) Rs.1.30 Lakhs b) Rs.1.60 Lakhs
c) Rs.1.50 Lakhs d) Rs.1.40 Lakhs
4 KCC Can be sanctioned for ____________ purposes
a) To meet the short-term credit requirements b) Investment credit requirement for Agri like
for cultivation of crops, Post-harvest farm machinery and allied activities to
expenses, Consumption requirement of agriculture like dairy animals, etc., and
farmer household, Working capital for repayable within a period of one year
maintenance of farm assets and activities
allied to agriculture like dairy animals
c) Both A & B d) Neither A nor B
5 While fixing the KCC limit, ______ of SOF can be considered towards repairs and
maintenance of farm assets.
a) 20% b) 25%
c) 10% d) 15%
6 MPL of KCC stands for ________
a) Maximum Production Limit b) Maximum Payment Limit
c) Multipurpose Limit d) Maximum Permissible Limit
7 AB1 Document is ________
a) Guarantee Deed b) Agreement for Hypothecation
c) Mortgage Deed d) Application form
8 Charge to be Created on Agricultural Land is
a) Hypothecation b) Pledge
c) Lien d) Mortgage
9 A farmer can purchase agricultural inputs from _____ module of Yono Krishi
a) Mandi b) Mitra
c) Bachat d) Rate
10 A KCC borrower can apply for review of KCC facility through_______
a) Yono Retail b) Yono Business
c) Yono Krishi d) Yono Kisan
11 Which of the following important activities are covered under PMMY Allied Agri
1) Dairy 2) Piggery 3) Agri clinic 4) Bee keeping
a) 2,4 are correct b) 3 is correct
c) 1,2,3 are correct d) All are correct
12 What is maximum loan ceiling under PMMY allied Agri
a) Rs 5 lacs b) Rs 10 lacs
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c) Rs 25 lacs d) Rs 7.5 lacs
13 Select the incorrect statement under PMMY Allied Agri
a) Max loan Rs 10 las b) Margin upto Rs 50000/- is Nil
c) Inspection charges are waived d) Individual farmers are eligible under
the scheme
14 Repayment under PMMY Allied Agri
a) 3-5 yrs b) 1-5 years
c) 3-7 years d) 1-7 years
15 What is the min DSCR under the PMMY scheme
a) 1.25 b) 1.50
c) 1.75 d) 2.00
16 Who provides the credit guarantee cover for PMMY loans
a) CGFDU b) CGFMU
c) CGTMU d) CGTDU
17 Under the PMMY allied agri scheme, branches to ensure end use of funds by
verification of assets and collection of invoices within
a) 15 days b) 1 months
18 Which is false statement in regard to PMMY loans
a) CIC reports are must b) Processed through LOS only
c) Credit scoring to be used d) Pre sanction is waived
19 An applicant has submitted all the required documents for processing of loan under PMMY
allied agri on 03/10/2018, maximum by which date the loan should be sanctioned
a) 8/10/2018 b) 15/10/2018
c) 17/10/2018 d) 10/10/2018
20 Produce Marketing Loan (PML) is given for a maximum period ________ to farmers
against the security of farm produce stored at accredited / non-accredited
warehouses
21 Which is largest producer of milk in the world
a) Denmark b) USA
c) India d) China
22 What is the tag line of AMUL
a) Best of India b) The taste of India
c) AMUL doodh peeta hai India d) Asli milk
23 Which part of India has highest population of pigs
a) N E states b) Southern states
c) Western states d) North Indian states
24 Sunday ho ya Monday roj khao aande, is popular slogan of
a) NECC b) Central Poultry development org
c) Ministry of Agri d) Venkateswara Poultry
25 Which committee recommended the concept of SHG
a) M S Gore b) R V Gupta
c) S K Kalia d) Kalyansunderam
26 What is maximum membership in SHG

a) 15 b) 20
c) 25 d) 10
266
27 How much amount is paid to local book writers engaged in maintain the books per
month
a) Rs 20 per SHG b) Rs 25 per shg
c) Rs 50 per shg d) Rs 100 per shg
28 KYC verification at the time of account opening of SHG account is
a) Verification of all members of SHG b) Only few members would suffice
c) Only office bearers verification suffice d) No KYC is required for SHG account
29 Upto what amount interest subvention available for loans sanctioned to SHG under
DAY - NRLM
a) Rs 10,00,000/- b) Rs. 5,00,000 /-
c) Rs. 25,00,000 /- d) Rs 3,00,000 /-
30 Mainly SHG- bank linkage is of how many types
a) 2 b) 4
c) 3 d) 5
31 To be eligible for credit linkage the SHG should have been active existence for
a) 3 m b) 6 m
c) 9m d) 12 m
32 Choose the false statement
a) The SHG is maintaining proper b) Should have preferably
records homogeneous group
c) SHG should have good track record in d) SHG members can have
their functioning multiple membership in two or more
SHG
33 What is group Corpus,
1) balance in savings bank account of SHG
2) Amount utilized in internal lending 3) Cash balance with SHG
a) 1+2-3 b) 2+3-1
c) 1+3-2 d) 1+2+3
34 While apprising SHG loans, what are margin and security guidelines upto Rs 10
lakhs
a) Margin 5%, No security b) No margin and No security
c) Margin Nil Security 50% d) None of the above
35 SHG loan amount is disbursed fully in
a) Loan Disbursement are to be routed b) By credit to NGO account
through the Saving Bank Account of the
SHG
c) By issuing BC favouring SHG d) By transfer to individual
accounts of members
36 What is the incentive amount paid to NGOs
a) Rs 500 /- per SHG b) Rs 700 /- per SHG
c) Rs 750 /- per SHG d) Rs 1000 /- per SHG
37 What is DAY-NRLM
a) Deendayal Antyodaya Yojana- b) Deenbandhu Antyodaya Yojana-
National rural livelihood mission National rural livelihood mission
c) Deendayal Antyodaya Yojana- d) Deendayal Antyodaya Yojana-
National rural livelihood module National rural learning mission
38 DAY NRLM replaced the scheme wef 01.04.2013
a) SGSY b) SGSRY
c) PMRY d) NEGP
39 The Negotiable Warehouse Receipts (NWR) / electronic Negotiable Warehouse
267
Receipts (e-NWR) issued by the warehouses registered with the ____________
provide secure collateral for banks by assuring holders of the existence and
quality of agricultural commodities deposited in the warehouses
a) State Warehousing Corporations b) Warehousing Development and
(SWC) Regulatory Authority (WDRA)
c) Central Warehousing Corporations d) National Bulk Handling Corporation
(CWC) (NBHC)
40 Max. Loan amount ( lakhs) WHRs issued by Approved Collateral Managers under
Produce Marketing Loan [PML]
a) Rs 50 lakhs b) Rs 75 lakhs
c) Rs 100 lakhs d) Rs 200 lakhs
41 While apprising SHG loans, what are margin and security guidelines for For loan
above Rs. 10 lakhs to Rs. 20 lakh
a) Margin should be minimum 10 %, would b) No margin and No security
be eligible for coverage under Credit
Guarantee Fund for Micro Units
(CGFMU).
c) Margin Nil Security 50% d) Margin 5%, No security
42 Max. Loan amount ( lakhs) e-NWRs issued by WDRA registered warehouses
a) Rs 50 lakhs b) Rs 100 lakhs
c) Rs 75 lakhs d) Rs 200 lakhs
43 Produce Marketing loan is given under which facility
a) Cash Credit b) Overdraft
c) Demand Loan d) Term Loan
44 What is the turnaround time for Produce Marketing loan
45 Margin requirements under Agri. clinics and Agri. business centers scheme for
limits above Rs 5 lakhs and upto Rs 10 lacs
a) 10% b) 5%
c) 20% d) Nil
46 What is the clear sanction score for KCC limit of upto Rs 3 lakhs?
a) 50 & above b) 60 and above
c) 70 & above d) Above 75
47 The loan to SHGs can sanctioned as
a) Term Loan b) Cash Credit
c) Over draft d) Either TL or CC
48 What is maximum amount of loan that can be santioned to SHGs without collateral
a) Rs 7.5 lacs b) Rs 10 lacs
c) Rs 20 lacs d) Rs 15 lacs
49 Who prepares Potential linked plans

a) LDM b) RBO
c) NABARD d) SLBC
50 What is the clear sanction score for KCC limit of above Rs 3 lakhs?
a) 71 & above b) 70 & above
c) Above 50 d) 50 & above
51 TAT for KCC
a) 5 days b) 7 days
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52 What should be the minimum qualification of Customer service provider
a) 8th pass b) 10th pass
c) 12th pass d) Graduate
53 Who will do the due diligence while appointing the CSP
a) Link Branch b) RBO
c) LHO d) National BC
54 Which among the following is not the role and responsibility of Business
Correspondent
a) Wear standard blue uniform provided b) Undergo training and certification
by the bank
c) Adhere to fair codes for lending d) Not to provide any other banking
financial services other than bank’s
55 Who will ensure that due diligence is done on the CSP and also obtain Police
verification before appointment
a) Corporate Centre b) LHO
c) Link Branch d) Business Correspondent
56 Books maintained by the BC, Select the incorrect one
a) Customer Contact Register b) Customer Call Register
c) Daily Transaction Register d) Complaint Register
57 What are the business handled by the CSP
1)Opening SB accounts 2)Deposit in loan accounts
3)Providing mini statement
4)Sale of micro/insurance/mutual fund/pension products decided by bank
a) 1,2 are correct b) 1,2,3 are correct
c) 1,2,3,4 are correct d) 1,2,4 are correct
58 What are the business handled by the CSP
1)Seeding Aadhar Number
2)Deposit in loan accounts
3)Tatkal remittance under IMPS
4)Distribution of Coins and Bank notes
a) Only 1 & 4 b) Only 2 &3
c) All of 1,2,3,4 d) Only 1,2,3
59 Timings of CSP to provide financial services to customers on behalf of bank
a) 10 am to 8 pm b) 8am to 8 pm
c) 10 am to 5 pm d) 8 am to 6 pm
60 CSP should display the following boards at the kiosks, select false statement
a) Instructions regarding Rupay cards b) Products and services avaialable
c) Training certificate d) Fair Banking codes (BCSBI)
61 The following books to be maintained at Kiosk, select the incorrect one

a) Visiting officials register b) Transaction register
c) Suggestions cum complaint register d) Pass book issued register
62 Who appoints the National BC
a) IBA b) Corporate Centre, SBI
c) RBI d) NABARD
63 For sanction of MPGL (Multipurpose gold loan ) up to the loan limit of ____, a self-
declaration must be obtained from the applicant as per the format
a) Rs 3 lakh b) Rs 2 lakh
c) Rs 1.6 lakh d) Rs 1 lakh
64 The FI initiatives are implemented through technology called
269
a) Kiosk application b) CSP application
c) BC application d) FI application
65 Aggregate limit of the Multipurpose gold loans under Agriculture segment to a
single borrower/ CIF should be restricted to ______
a) Rs 100 lakh b) Rs 25 lakh
c) Rs 75 lakh d) Rs 50 lakh
66 Agri gold loan safe keeping chages _____
a) Rs 250 + GST per month b) Rs 150 + GST per month
c) Rs 100/- +GST per month d) Rs 200 + GST per month
67 Minimum loan amount for KCC Gold Loan
a) Rs. 1.61 lakh b) Rs 1.60 lakh
c) Rs 3 lakh d) Rs 1.50 lakh
68 Margin requirements under Agri. clinics and Agri. business centers scheme for
limits upto Rs 5 lakhs
a) 5% b) 10%
c) 20% d) Nil
69 How much amount should be kept in DSRA in the Agri enterprise loan
a) 1 month Principal + Interest b) 2 months Principal + Interest
c) 6 months Principal + Interest d) 3 months Principal + Interest
70 What is the minimum DSCR requirement for MODIFIED NEW TRACTOR LOAN
SCHEME (MNTL)
a) 1.75:1 b) 1.66:1
c) 1.5:1 d) 1.33:1
71 What is the maximum repayment period for Tractor Loan under Tie-up (TLT)
product
72 What is the minimum land requirement for financing Combine harvesters
a) 5 acres irrigated or dry land 10 acres b) 3 acres of irrigated land for individual
borrower and 5 acres of irrigated land
for joint borrowers. Dry land - 15 acres
c) 6 acres irrigated or dry land 10 acres d) 3 acres irrigated or dry land 6 acres
73 In small accounts what is cap on maximum balance
a) Rs 200000/- b) Rs 100000/-
c) Rs 50000/- d) Rs 20000/-
74 Basic Savings Bank Deposit accounts are, choose the incorrect one
a) Full KYC compliant accounts b) No upper limit on maximum balance
c) Basic ATM cum Debit card is issued d) Enabled at specific branches
75 What is the accident insurance cover for PMSBY
a) Rs 100000/- b) Rs 200000/-
c) Rs 400000/- d) Rs 500000/-
76 Margin requirement for financing construction of cold storage
a) 20% b) 25%
c) 15% d) 10%
77 ____% Interest subvention is available in the AIF sccheme
a) 3% b) 1.5%
c) 2% d) Int subvention not applicable
78 The Aadhar enabled payment system is an interoperable payment platform offered
by
a) IMPS b) NACH
270
c) NPCI d) IBA
79 The age of subscriber for Atal pension Yojana should be between

a) 21-40 b) 18-50
c) 21-50 d) 18-40
80 What is minimum deposit under Sukanya Samrudhi Yojana
a) Rs 100 b) Rs 1000/-
c) Rs 250/- d) Rs 500/-
81 Kisan Credit Card has emerged as an innovative credit delivery mechanism to meet
the production credit requirements. A farmer approaches for sanction of sprayer,
while sanctioning his KCC limit. Can we accede to his request?
a) No, as limit sanctioned for sprayer b) As sprayer is also required for
comes under investment credit production of crops the request
should be considered
c) Investment credit requirement for d)
Agriculture and allied activities None of these
repayable within a period of one year
form a part of KCC limit.
82 KCC limit can be sanctioned to
a) Farmers who own Agricultural land b) Agricultural land taken by farmers
on on lease to grow crops
c) land cultivated as tenants / share d) All of the above
croppers
83 What is the minimum score requirement for financing Poly house below Rs 50
lacs?
a) Above 70% b) Above 50%
c) Above 55% d) Above 60%
84 What are RBI guidelines with regard to obtaining ‘No Dues’ certificate from
individual farmers while sanctioning KCC loan
a) Dispensed with obtention for loans upto b) Dispensed with obtention for loans
Rs: 25,000/- upto Rs: 50,000/-
c) To be obtained only for loans of above d) Dispensed with obtention of ‘No
Rs: 50,000/- Dues’ irrespective of the amount
involved in rural and Semi-urban
areas
85 KCC will be sanctioned as a
a) Demand Loan b) Term Loan
c) revolving cash credit account d) None of these
86 What are the minimum and maximum ceilings for sanction of KCC?
a) No minimum or maximum limit (Need b) Minimum of Rs: 10,000/-
based finance) Maximum of Rs: 3,00,000/-
c) Minimum of Rs: 10,000/- No d) Minimum of Rs: 10,000/-
Maximum limit Maximum of Rs: 5,00,000/-
87 Margin to be maintained while sanctioning KCC limit
a) 15% b) No margin is required
c) 25% d) 15% to 25% on a case to case
basis
88 KCC is sanctioned for a period of
271
a) One year b) One crop season
c) 5 years with review on an yearly d) 3 years with review on an yearly
basis basis
89 The SOF is the crop-wise estimate about cost of cultivation and loan requirement
are worked out and prescribed by
a) SLBC b) DLTC
c) DCC d) SLTC
90 In KCC the limit will be stepped by % each year
a) 10 b) 20
c) 5 d) 15
91 Composite limit (flexi KCC limit) of Rs: _ to Rs: _ for
marginal farmers may be sanctioned, based on land holdings
a) 5,000/- , 10,000/- b) 10,000/- , 25000/-
c) Upto Rs: 5,000/- d) 10,000/- , 50,000/-
92 Agri Interest subvention of % will be provided by Government of India
a) 1.5% b) 2%
c) 3% d) None of these
93 The NGO / MFI must have been in existence for at least ____ months and shall have
a track record of running a successful micro credit programme at least for the last
___ months to become eligible for financing
a) 12 months and 6 months b) 24 months and 12 months
c) 24 months and 6 months d) 12 months and 8 months
94 In KCC, in case of non-payment within the repayment due dates, interest will be
applied at
a) card rate, compounded at monthly rests b) card rate, compounded at
quarterly rests
c) card rate, compounded at half d) card rate, compounded at yearly
yearly rests intervals
95 Processing charges for KCC to be collected
a) On Maximum Drawing Limit b) On Maximum Permissible Limit
c) Rs 1000/- irrespective of loan d) No processing Charges to be
amount sanctioned collected for KCC
96 Collateral security is waived for KCC limit up to Rs. lacs for loans with tie-up
arrangement
a) 5 b) 3
c) 2 d) 1.5
97 Credit balance in the KCC account will be eligible for interest at _ rate.
a) Savings Bank b) Bank
c) Short Term Deposit d) No interest will be paid
98 Short duration crops are those crops raised
a) Upto 9 months b) Upto 3 months
c) Upto six months d) Upto 12 months
99 A Joint Liability Group (JLG) is an informal group of individuals
a) 5-10 b) 4-10
c) 10-20 d) 15-25
100 The loan for a JLG can be granted
a) Only on individual basis b) Only on group mechanism
c) Individually or for a group d) None of these
272
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
A c c b c a d b d a c
Q 11 12 13 14 15 16 17 18 19 20
A d b c a c b b d c d
Q 21 22 23 24 25 26 27 28 29 30
A c b a a c b b c b b
Q 31 32 33 34 35 36 37 38 39 40
A b d d b a c a a b a
Q 41 42 43 44 45 46 47 48 49 50
A a c c b a a d c c a
Q 51 52 53 54 55 56 57 58 59 60
A c c a a d b c c b d
Q 61 62 63 64 65 66 67 68 69 70
A d b b a b c a d d c
Q 71 72 73 74 75 76 77 78 79 80
A c b c d b b a c d C
Q 81 82 83 84 85 86 87 88 89 90
A c d d d c a b c b a
Q 91 92 93 94 95 96 97 98 99 100
A d a a c a b a d b c
Back to Index page

273
Priority Sector Lending
A large portion of the population in India doesn't have access to funds. Therefore RBI has adopted
Priority Sector Lending norms which relaxes the lending norms for poor and small businesses.
Priority Sector includes the following categories:
1. Agriculture
2. Micro, Small and Medium Enterprises
3. Export Credit
4. Education
5. Housing
6. Social Infrastructure
7. Renewable Energy
8. Startups
9. Others
Domestic scheduled commercial banks and Foreign banks
Categories
with more than 20 branches in India
40 per cent of Adjusted Net Bank Credit or Credit
Total Priority Sector Equivalent Amount of Off-Balance Sheet Exposure, whichever is
higher.
18 per cent of ANBC or Credit Equivalent Amount of
Off-Balance Sheet Exposure, whichever is higher.
Within the 18 percent target for agriculture, a target of 10
Agriculture
percent of ANBC or Credit Equivalent Amount of Off-Balance
Sheet Exposure, whichever is higher is prescribed for Small and
Marginal Farmers.
7.5 percent of ANBC or Credit Equivalent Amount of
Micro Enterprises
Off-Balance Sheet Exposure, whichever is higher.
12 percent of ANBC or Credit Equivalent Amount of
Advances to Weaker Sections
Off-Balance Sheet Exposure, whichever is higher (Updated)
Limits on priority sector lending
Sector Limit for Priority sector lending

o Rs.5 crore per borrower for setting up schools, drinking water facilities
and sanitation facilities including construction/ refurbishment of
Social infrastructure household toilets and water improvements at the household level, etc.
o Limit of Rs.10 crore per borrower for building health care facilities
including under ‘Ayushman Bharat’ in Tier II to Tier VI centres. (Updated)
Education Rs. 20 lacs
Renewable energy Rs.30 crores (Updated)
Exports Rs. 40 crores per borrower
o Metropolitan: Rs.35 lacs (Maximum house value Rs.45 lacs)
Housing loans
o Other cities: Rs.25 lacs (Maximum house value Rs.30 lacs)
Loans up to ₹50 crore to Start-ups, as per definition of Ministry of
Start ups Commerce and Industry, Govt. of India that are engaged in activities other
than Agriculture or MSME
274
Weaker section categories
o Small and Marginal Farmers
o Artisans, village and cottage industries where individual credit limits do not exceed Rs. 1 lakh
o Beneficiaries under Government Sponsored Schemes such as National Rural Livelihoods
Mission (NRLM), National Urban Livelihood Mission (NULM) and Self Employment Scheme
for Rehabilitation of Manual Scavengers (SRMS)
o Scheduled Castes and Scheduled Tribes
o Beneficiaries of Differential Rate of Interest (DRI) scheme
o Self Help Groups
o Distressed farmers indebted to non-institutional lenders
o Distressed persons other than farmers, with loan amount not exceeding Rs. 1 lakh per borrower
to prepay their debt to non-institutional lenders
o Individual women beneficiaries up to Rs. 1 lakh per borrower
o Persons with disabilities
o Overdraft limit to PMJDY account holders.
o Minority communities as may be notified by Government of India from time to time
Classification of Exports under priority Sector

Export credit under agriculture and MSME sectors are allowed to be classified as PSL in the respective
categories viz. agriculture and MSME. Export Credit (other than in agriculture and MSME) will be allowed to
be classified as priority sector as below:
➢ Incremental export credit over corresponding date of the preceding year, up to 2 per cent of ANBC
or CEOBE whichever is higher, subject to a sanctioned limit of up to ₹ 40 crore per borrower
Lending by banks to NBFCs for On-Lending

o In order to boost credit to the needy segment of borrowers, it has been decided that bank credit to
registered NBFCs (other than MFIs) for on-lending will be eligible for classification as priority sector
under respective categories subject to the following conditions:
o Agriculture: On-lending by NBFCs for ‘Term lending’ component under Agriculture will be allowed up to
Rs 10 lakh per borrower.
o Micro & Small enterprises: On-lending by NBFC will be allowed up to Rs 20 lakh per borrower
o Bank credit to NBFCs (including HFCs) for on-lending will be allowed up to an overall limit of 5
percent of an individual bank’s total priority sector lending in case of commercial banks
o
Housing: Bank credit to Housing Finance Companies (HFCs), approved by NHB for their refinance, for on-
lending for the purpose of purchase/construction/ reconstruction of individual dwelling units or for slum
clearance and rehabilitation of slum dwellers, subject to an aggregate loan limit of ₹20 lakh per borrower
Following loans under ancillary services will be subject to limits prescribed as under:
o Loans up to Rs.5 crore to co-operative societies of farmers for purchase of the produce of members (Not
applicable to UCBs)
o Loans for Food and Agro-processing up to an aggregate sanctioned limit of Rs.100 crore per borrower
from the banking system.
➢ Farmers with landholding of up to 1 hectare - Marginal Farmers

➢ Farmers with a landholding of more than 1 hectare and up to 2 hectares – Small Farmers
Service charges: No loan related and ad hoc service charges/inspection charges should be levied
on priority sector loans up to ₹25,000. In the case of eligible priority sector loans to SHGs/ JLGs,
this limit will be applicable per member and not to the group as a whole.
275
1 For the purpose of computation of achievement of the sub target, Small and
Marginal Farmers, Loans up to ₹ ………. lakh to individuals solely engaged in
Allied activities without any accompanying land holding criteria will be
considered.
a) 2 b) 1
c) 5 d) 0.20
2 Loans up to ₹ ………. per borrowing entity to FPOs/FPCs undertaking farming with
assured marketing of their produce at a pre-determined price is classified under
Priority Sector, i.e. Agriculture Farm Credit.
a) 50 Lakhs b) 5 Crores
c) 5 Lakhs d) 50 Crores
3 Loans up to ₹………. Crore to Start ups, as per definition of Ministry of Commerce
and Industry, Govt. of India that are engaged in Agriculture and Allied Services,
confirm to the definition of MSME and are also engaged in activities other than
Agriculture or MSME will be classified under Priority Sector.
a) 25 Crores b) 100 Crores
c) 50 Crores d) 5 Crores
4 Bank loans up to a limit of ₹……………… to borrowers for purposes like solar based power
generators, biomass-based power generators, wind mills, micro-hydel plants and for non-
conventional energy based public utilities, viz., street lighting systems and remote village
electrification etc., will be eligible for Priority Sector classification
5 Under Social Infrastructure, lending loans up to a limit of ₹……………. per borrower
for building health care facilities including under ‘Ayushman Bharat’ in Tier II to
Tier VI Centres is now classified under Priority sector
a) 10 Crores b) 1 Crore
6 Loans to individuals for educational purposes, including vocational courses, not
exceeding Rs. ……… will be considered as eligible for Priority Sector Classification.
a) 20 LACS b) 25 LACS
c) 50 LACS d) 200 LACS
7 Housing Loans up to Rs. ………… lakh in metropolitan centers and up to Rs. ……….
lakh in other centers for repairs to damaged dwelling units, conforming to the
overall cost of the dwelling unit will be considered as eligible for Priority Sector
Classification.
a) 15 LACS AND 10 LACS b) 12 LACS AND 10 LACS
c) 10 LACS AND 6 LACS d) 5 LACS AND 2 LACS
8 Loans against pledge/hypothecation of agricultural produce (including warehouse
receipts) for a period not exceeding 12 months subject to a limit up to ₹………
against NWRs/eNWRs and up to ₹…….. against warehouse receipts other than
NWRs/eNWRs to be classified as priority
a) 75 lakh, 50 lakh b) 60 lakh, 40 lakh
c) 50 lakh, 35 lakh d) 50 lakh, 25 lakh
9 All loans to units in the Khadi and Village Industries sector will be eligible for
classification under the sub target of 7.5 percent prescribed for ……. under priority
sector
a) Small Farmers b) Marginal Farmers
c) Micro Enterprises d) Small Enterprises
276
10 Bank credit to registered NBFCs (other than MFIs) towards on lending for ‘Term
lending component under agriculture will be allowed up to ₹ …….. under priority
sector
c) 50 lacs d) 100 lacs
11 Bank credit to registered NBFCs (other than MFIs) towards on lending for ‘Term
lending component under Micro and Small enterprises will be allowed up to ₹ …….
under priority
a) 25 lakh b) 10 lakh
c) 50 lakh d) 20 lakh
12 Loans to individuals up to ………………. lakh in other than metropolitan centers for
purchase/construction of a dwelling unit per family provided the overall cost of the
dwelling unit in the does not exceed ………... ₹ lakh
a) 35 lakh and 45 lakhs b) 45 lakh and 35 lakhs
c) 25 lakh and 30 lakhs d) 30 lakh and 25 lakhs
13 Bank loans to HFCs (approved by NHB for their refinance) for on lending, up to
₹…………. for individual borrowers, for purchase/construction/ reconstruction of
individual dwelling units or for slum clearance and rehabilitation of slum dwellers
c) 25 lacs d) 50 lacs
14 Bank loans up to a limit of ₹………… per borrower for setting up schools, drinking
water facilities and sanitation facilities including construction/ refurbishment of
household toilets and water improvements at household level (Social
Infrastructure)
a) 1 Crore b) 5 Crores
15 Priority sector loans to the following borrowers which one is not correct while considering
as lending under Weaker Sections category
a) Individual women beneficiaries up b) Artisans, village and cottage industries
to ₹1 lakh per borrower where individual credit limits do not
exceed ₹1 lakh
c) Distressed persons other than d) Distressed farmers indebted to non-
farmers, with loan amount not institutional lenders not exceeding ₹1
exceeding ₹1 lakh per borrower to lakh per borrower
prepay their debt to non-institutional
lenders
16 The Cumulative target for priority sector lending, is ____ per cent of Adjusted
Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures
(CEOBE) for commercial banks
a) 45 b) 50
c) 40 d) 55
17 The ROI on bank loans on priority will be as per directives issued by ………. from
time to time.
a) RBI b) Individual banks
c) Govt of India d) NABARD
18 No loan related and ad hoc service charges/inspection charges should be levied on

priority sector loans up to ₹…………
a) 25000 b) 10000
c) 50000 d) 1 lac
277
19 Loans to Custom Service Units managed by individuals, institutions or
organizations who maintain a fleet of farm machines are classified as ___
under Priority Sector lending norms.
a) Ancillary activities under Agriculture b) Agri. Infrastructure Credit
c) Advances to Micro Enterprises d) None of the above
20 Which among the following is not a ‘Farm Credit’ in agriculture as defined
under Priority Sector Lending guidelines?
a) Loans to distressed farmers b) Loans up to ₹5 crore per borrowing entity
indebted to non-institutional to FPOs/FPCs undertaking
lenders. farming with assured marketing of their
produce at a pre-determined price.
c) Loans against pledge/hypothecation d) Loans to soil conservation and watershed
of agricultural produce for a period development
not exceeding 12 months subject to
a limit up to ₹50 lakh.
21 What is the target for Micro Enterprises under MSME ……? of ANBC or CEOBE,
whichever is higher.
a) 8% b) 7.50%
c) 10% d) 12%
22 The mandated sub target for Small and Marginal farmers for the financial year 2023-
24 is _________ of Adjusted Net Bank Credit (ANBC) or Credit Equivalent
of Off-Balance Sheet Exposures (CEOBE) whichever is higher
a) 12% b) 9.5%
c) 8% d) 10%
23 Loans not exceeding Rs. ___ lacs provided directly by banks to SHG/JLG for
activities other than agriculture or MSME, viz., loans for meeting social needs,
construction or repair of house, construction of toilets or any viable common
activity started by the SHGs are eligible for Priority Sector Classification
a) 2.50 b) 2
c) 1.50 d) 1
24 For the purpose of computation of achievement of targets and sub targets in
Priority Sector Lending sub target, Farmers with landholding of up to 1 hectare are
considered to be

c) Medium Farmers d) Tenant Farmers
25 Loans for Agriculture Infrastructure will be subject to an aggregate sanctioned
limit of Rs. ______ Crore per borrower from the banking system.
a) 25 b) 50
c) 75 d) 100
26 Loans for Food and Agro processing up to an aggregate sanctioned limit of ₹………
per borrower from the banking system.
27 The mandated sub target for weaker sections for the financial year 2023-24 is
_________% per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent
of Off-Balance Sheet Exposures (CEOBE) whichever is higher
a) 10 b) 8
c) 11.5 d) 12
278
28 Loans to farmers for installation of solar power plants on barren/fallow land or in
stilt fashion on agriculture land owned by farmer can most appropriately be
classified under the following sub category of Priority sector classification______
a) Renewable Energy b) Farm Credit
c) Ancillary Activities d) Social Infrastructure
29 Loans to farmers for installation of standalone Solar Agriculture Pumps and for
solarization of grid connected agriculture pumps can most appropriately be
classified under the following sub category of Priority sector classification______
a) Renewable Energy b) Farm Credit
c) Ancillary Activities d) Social Infrastructure
30 As per RBI guidelines on priority sector credit banks are supposed to maintain: a
register/electronic record should be maintained by the bank wherein the following
information with thereof, etc. should be recorded. The aforesaid register/electronic
record should be made available to all inspecting agencies
a) Date of Receipt b) Date of Sanction/Rejection
c) Date of Disbursement d) All of the above
31 The performance under flow of credit to Minority Communities is being reviewed
regularly at various levels including ……….
a) RBI b) GOI
c) Parliamentary Committees d) All the above
32 Farmers with a landholding of more than 1 hectare and up to 2 hectares are
classified as
c) Tiny Farmers d) Medium Farmers
33 Loans to individuals up to ………………. lakh in metropolitan centers for
purchase/construction of a dwelling unit per family provided the overall cost of the
dwelling unit in the does not exceed ………... ₹ lakh
a) 45 lakh and 35 lakhs b) 35 lakh and 45 lakhs
c) 25 lakh and 30 lakhs d) 30 lakh and 25 lakhs
34 Bank loans to any governmental agency for construction of dwelling units or
for slum clearance and rehabilitation of slum dwellers subject to dwelling units
with carpet area of not more than ………. SQ.M will be classified under
PRIORITY (RBI)
a) 60 b) 45
c) 120 d) 50
35 Foreign banks with less than 20 branches, total priority target is 40 % of ANBC or
CEOBE whichever is higher; out of which up to …………% can be in the form of
lending to Exports and not less than ………% can be to any other priority sector
a) 40 % and 0 % b) 32 % and 8 %
c) 25 % and 15 % d) 18 % and 12 %
36 Total Priority Sector target of RRBs and SFBs…… % of ANBC or CEOBE whichever
is higher
a) 40 b) 50
c) 75 d) 60
37 Manufacturing and Service enterprises having investment not more than Rs
1 Cr and annual turnover not more than Rs 5 Cr will be classified as
a) SMALL enterprise b) MICRO enterprise
c) MEDIUM enterprise d) TINY enterprise
279
38 Manufacturing and Service enterprises having investment not more than Rs 10 Cr
and annual turnover not more than Rs 50 Cr will be classified as
a) MICRO enterprise b) SMALL enterprise
39 Manufacturing and Service enterprises having investment not more than Rs 50 Cr
and annual turnover not more than Rs 250 Cr will be classified as
a) MICRO enterprise b) SMALL enterprise
40 FY 2021 22 onwards, To address regional disparities in the flow of priority sector
credit at the district level, a higher weight ………. %) would be assigned to the
incremental priority sector credit in the identified districts where the credit flow
is comparatively lower (per capita PSL less than ₹……..)
a) 125 % and Rs 6000/ b) 90 % and Rs 25000/
c) 125 % and Rs 25000/ d) 90% and Rs 6000
ANSWERS
1 2 3 4 5 6 7 8 9 10
Q
A B C B A A C A C A
ANS
11 12 13 14 15 16 17 18 19 20
Q
D C B B D C A A A D
ANS
21 22 23 24 25 26 27 28 29 30
Q
B D B B D C D B B D
ANS
31 32 33 34 35 36 37 38 39 40
Q
D A B A B C B B C A
ANS
41 42 43 44 45 46 47 48 49 50
Q
D D B B A A D D B C
ANS
Back to Index page

280
Government Business & Government Products
GOVERNMENT BUSINESS
➢ RBI acts as banker to Central Govt (Section 20 & 21 of RBI act, 1934)
➢ RBI acts as banker to State Govts (Section 21A of RBI act, 1934)
➢ Section 45 of RBI Act, 1934 provides for appointment of banks as agent.
➢ SBI acts as Agent of RBI.
➢ Govt is the largest corporate client of SBI
➢ Govt business means conducting financial activities on behalf of RBI
a) Receipts (revenue collected)
b) Payments (Govt spending),
c) Maintaining and Servicing of various schemes floated by GOI.
➢ Transaction based business on commission basis
➢ SBI share 30% in GST collection (Approx.)
➢ SBI share 80% of government commission (Approx)
➢ Direct Tax: Income Tax, wealth tax, Corporation tax
➢ Indirect Tax: GST, Service tax, Excise Duty
➢ In order to provide better service in the area of Government Business the bank has set
up Government Banking Unit (GBU) in the year 2006 at New Delhi
➢ The GBU is supported by Government Accounting Department (GAD) at Belapur, Navi
Mumbai which takes care of Accounting and Analytics
➢ Reserve Bank of India daily settlement of accounts in the government account at
Central Accounts Section (CAS), Nagpur
➢ Government cheques are non-transferable and payable ‘to order'
➢ The number of transactions eligible for payment of agency commission should not
exceed 14 per pensioner per year
➢ The Bank makes the payment through mirror accounts and then claims
reimbursement from RBI in T+1 day
➢ Government bills are drawn by drawing officer and thereafter passed by Treasury
Officer for payment at the Bank. After that, the Government Bill is called as Pay order.
Validity of a Pay order is upto 10 days or till the end of the month, whichever is earlier.
➢ After expiry of the validity period, it can be revalidated by Treasury Officer.
Revalidation extends its validity for another 10 days.
➢ Government cheques drawn on bank are treated as Negotiable Instruments. But
cheques drawn on the Treasury are treated as Government Bill and hence protection
under Negotiable Instrument Act is not available
➢ All credits to the Government Account should be supported by Challans or GAR 7
➢ The amount is transferred to RBI within prescribed time period T + 1 or T+2 days (for
branches in North Eastern States)
281
Agency Commission Rates w.e.f 01-07-2019 (The Earning Potential)
Type of transaction Rate of commission

Receipts-e mode Rs. 9 per transaction
Receipts- Physical mode Rs. 40 per Transaction
Pension payment Rs. 75 per transactions
Payments- Other than pension 6.5 Paisa per Rs. 100
Commutation & Gratuity 6.5 Paisa per Rs. 100
Sharing of Commission 75% to DBs: 25% to FPB
➢ FSLO (Funds Settlement Link Office) has been set up, at RBI Centre/LHO/State Capitals
➢ GBSS - GOVERNMENT BUSINESS SOFTWARE SOLUTION
Delayed Period Interest:

For transactions above Rs. 1 lac: @ Bank Rate +2%
For transactions below Rs. 1 lac:
For delays up to 5 calendar days @ Bank Rate
For delays above 5 calendar days @ Bank Rate +2%

Government business / Products:
Direct Taxes:
• Income Tax, Corporation Tax, TDS, Security Transaction Tax, Hotel Receipt Tax,
Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax, Gift Tax & other direct taxes
• Payment of TDS on sale of property,
• Commodity Transaction Tax can be paid in cash/Cheque/online/ATM of SBI
Indirect Taxes :(GST, Service Tax, Excise Duty)
• For payment of customs duty, log through customs department site ICEGATE (or)
through www.onlinesbi.com
• SBI – sole banker for refunds of GST, with a 30 % market share in GST Collections
State Government Taxes:
SBI entered into tie up for state tax collections, receipts (Taxes, Fees, Penalties etc). Can be
paid through branches / INB
Direct Benefit Transfer:
• SBI the sole baker for processing DBT for LPG
SCSS – 2004 – for retired individual of over 60 years to park retirement benefit.
Passport Seva Kendra:

Collection of fees. Fees can be deposited through INB/ATM/Credit card Offline collections through
77 PSKs linked to SBI branches
282
Government Banking Unit: (GBU) – Marketing of Business

➢ GBU was created in the year 2006 at New Delhi for marketing of Govt business through
relationship Managers
➢ GBU acts as facilitator between Govt and the IT wing of the Bank, providing end to end
technology solutions for the ministries.
➢ GBU supported by Govt Accounting Dept, at Belapur, Navi Mumbai,
➢ It provides business leads and guidance to the State Govt Banking Depts at Circle level
➢ SBI e- Pay, CMP
➢ GBU also takes care of Pension and DBT related work.
➢ GBU is the business owner of PPF, SSA, SCSS etc and runs campaign for growth.
➢ GBU is the one-point contact for Ministries / Govt departments etc
➢ Relationship building - 15th of every month to be called as GBU day
Government Accounts Department (GAD) – Maintaining of Business

➢ GAD (Govt Accounts Department) is assigned to perform settlement of Central Govt
Receipts and Payments and work as Nodal Agency for implementing Small Deposit
Schemes of Ministry of Finance
➢ Whole Bank central Govt Turnover is being routed through GAD
➢ Responsible for prompt and timely settlement of funds, reconciliation, and elimination of
payment of penal interest
➢ Interact with Ministries, Departments of GOI, and Circle CGMs, GMs, RBIs, CAS, Nagpur
➢ Deals with the FPB of SBI, getting authorization for branches for conduct of CBDT/CBEC
➢ BPR initiatives in pension, PPF etc
➢ Handling of OLTAS / e-TAX, other new applications like online system for central excise,
Customs, and service Tax etc
PAN
Permanent Account Number is a 10-character alpha numeric number as per the following format:
5(A)+4(N)+1(A)
• First 5 characters should be Alpha, 4th character should be A, B, C, F, H, J,L,P,T,G only,
• 5th character should be Alpha, for Corporation Tax 4th character should be ‘C'
• 6th to 9th characters is Numeric only but not all zeroes
• 10th character should be Alpha
TAN
Tax Account Number is a 10-character alpha numeric number allotted to a tax deducting authority
for deduction of tax at source. The structure of the TAN is as per the following format:
4(A)+5(N)+1(A)
• 1st three characters should be valid CTU Codes and Alpha only
• 5th to 9th position should be Numeric but not all zeroes
283
PUBLIC PROVIDENT FUND SCHEME

1 Eligibility Individuals & On behalf of Minors (one account on behalf of each minor)
(NRI & HUF are not eligible) Only one account per person.
2 Benefit available under Sec 88 of IT Act
(Both interest & Maturity amount are tax free)
Protection of PPF balance from any attachment
3 Period of Deposit 15 years from the end of 31st march of initial deposit. can be extended for 1
or more blocks of 5 years each.
(Extension option should be given before 1 year from date of maturity /
extended maturity)
4 Available at All branches & INB
5 Deposit amount Min Rs. 500 /- , Maximum – Rs. 1,50,000 /- in FY
(This 1,50,000 /- is includes of a person + all minor on behalf)
No restriction in number of times for deposits
6 If deposit more the excess amount will neither earn any interest nor will be eligible for rebate
than Rs.1,50,000 under Income Tax Act
7 If minimum deposit Penalty of Rs. 50 /- per annum along with the minimum specified amount
not made per year. Penalty credited to Govt account
8 Interest calculation minimum balance (in PPF Account) between 5th day and end of the month
and is paid on 31st March every year.
9 TDS Not applicable
10 Transferability To other branches/ other banks or Post Offices and vice versa. No charges
applicable
11 Loan facility 1. loan from the account any time after expiry of one year in which
the original deposit was made but before expiry of five years
from the end of the year in which original deposit was made
2. The loan amount can be a maximum of 25 percent of the second
year immediately after the loan application year
3. ROI – 1% more than what one gets from PPF
4. Loan amount has to be repaid within 36 months; interest amount has
to be repaid in not more than two monthly installments after the
repayment of principal
5. Not paid in 36 months- ROI – 6% more than PPF rate on remaining
principal balance
6. only one loan can be taken in a financial year. The second loan
cannot be provided till the first loan is repaid.
12 Partial withdrawal 1. allowed any time after the expiry of five years from the end of the
year in which the account was opened
2. amount not exceeding fifty per cent. of the amount that stood to his
credit at the end of the fourth year immediately preceding the year
of withdrawal or at the end of the preceding year, whichever is lower
3. Only one withdrawal in one FY 4. Only after the expiry of five years
13 Premature closure An account holder shall be allowed premature closure of hi account or the account
of the minor or person of unsound mind of whom is the guardian on an any of the
following grounds
1. treatment of life-threatening disease of the account holder, his spouse or
dependent children or parents
2. higher education of the account holder, or dependent children
3. change in residency status to NRI (However, can continue the deposit till maturity
with max deposit of Rs. 1,50,000 /- per FY. But cannot extend after maturity)
The account shall not be closed before the expiry of 5 years from the end of the
year in which the account is opened.
➢ Reduction of 1 % interest
14 Nomination one or more persons. The shares of nominees may also be defined by the
subscriber.
284
SUKANYA SAMRITHI ACCOUNT

1 Eligibility resident citizen of India
Upto two girl children or three in case of twin girls as second
birth or the first birth itself results in three girl children. Account
can be opened in the name of a girl child till she attains the age
of 10 years.
2 Benefit To promote the welfare of Girl Child
section 80C of the IT Act. Both interest and maturity is tax free.
3 Period of Deposit 21 years from the date of opening (contributions only need to
be made for 15 years ) or until the girl child marries after the age
of 18 . Thereafter the account continues to earn interest until
maturity even if no deposits are made into it.
4 Available at All branches
5 Deposit amount • Min.250 of initial deposit with multiple of one Fifty rupees
thereafter with annual ceiling of Rs.150000 in a financial
year.
• Maximum period upto which deposits can be made 15
years from the date of opening of the account.
6 If deposit more than the excess amount will neither earn any interest nor will be
Rs.1,50,000 eligible for rebate under Income Tax Act
7 If minimum deposit penalty of Rs.50 per year along with the minimum specified
not made amount per year. Penalty credited to Govt account
8 Interest calculation compounded annually, on balance in completed thousands
9 TDS Nil
10 Transferability To other branches/ other banks or Post Offices and vice versa.
No charges applicable
11 Loan facility Nil
12 Partial withdrawal 50% of the for two reasons:
marriage or higher education of the girl child.
13 Pre-mature closure 1. treatment of life-threatening disease of the account
holder, his spouse or dependent children or parents.
2. change in residency status to NRI.
3. Death of the account holder
(shall not be closed before the expiry of five years)
285
SENIOR CITIZEN SAVING SCHEME
1 Eligibility Individual capacity, or jointly with spouse.
NRI's & Hindu Undivided Family are not eligible
2 Minimum Age Normal – 60 years. Retired on superannuation – 55 -60
Defence personal – 50 Years
Deposit amount is restricted to the retirement benefits received and
must be deposited in the SCSS account within three month from the
date of receiving the retirement benefits from the employer.
Spouse of the deceased employee can open SCSS, if the deceased
attained 50 years and died in harness
3 No of accounts 1. Should make the deposit to the account in a single payment.
2. Can open more than one account under the scheme
3. more than one account shall not be opened in the same
deposit branch during a calendar month.
4 Benefit retirement benefits as higher rate of interest
5 Period of Deposit 5 years and any number of extension of 3 years (extension can be
done within 1 year from the date of maturity.)
6 Available at All Branches
7 Deposit amount Min – Rs. 1,000 /- and multiples of Rs. 1,000 /-
Max – Rs. 30 lakhs
8 Interest payment Payable at the end of each calendar quarter e.g. 31st March / 30th
June / 30th September / 31st December
9 TDS As applicable at prevalent rate. Form 15G/15H can be submitted
10 Transferability To other branches/ other banks or Post Offices and vice versa. No
charges applicable
11 Loan facility No
12 Partial withdrawal No
13 Pre-mature Any time, after the date of opening, with penalty as follows
closure 1. before one year – 1% of deposit amount
2. 1 -2 years – 1.50 % of deposit amount
3. Above 2 Years – 1.00 % of deposit amount
14 Nomination More than one
15 Joint account •
Both the spouses can open single account and joint accounts
issues with each other with the maximum deposit of upto Rs.
30,00,000 /- in each account
• The whole amount of deposit in a joint account shall be
attributable to the first account holder only.
• In case of a joint account, the age of the first account holder
shall be considered to determine the eligibility
16 death of the Post Office Savings Account from the date of death of the account
account holder holder till the date of final closure of the account:
before maturity
286
CAPITAL GAIN SCHEME
1 Purpose Sold a plot of land or a flat and plan to re-invest it in a residential
property or any other specified asset within the stipulated time
frame. Park the proceeds in SBI's CapGains
2 Eligible depositors Resident Individuals, Non-individuals like Hindu Undivided
Family (HUF), Sole Proprietorship firms; Partnership firms,
Companies, Association of persons etc.
Non-resident Indians (NRIs)
Resident but not Ordinary Resident (RNOR)
Other Artificial Judicial persons who have capital gains, taxable
in India.
3 Benefit Exemption of Long-Term Capital Gains Tax on sale of Capital
Assets.
4 Available at All branches except Rural branches.
5 Type of deposit Deposit Account-A – SB Account
Deposit Account-B - Term Deposits (TDR / STDR)
(Account B – Minimum – Rs. 1,000 /- & No Maximum)
6 Rate of as Interest As applicable to SB / TDR / STDR
No additional interest to staff, Sr Citizen, Bulk, etc
7 Period of Deposit 2 to 3 years from the date of transfer of original asset
Max 24 months - U/s 54, 54B, 54 F.
Max 36 months - U/s 54, 54 D, 54 F, 54 G & 54GB
8 Closure of all Allowed before maturity. (Proceeds to be credited to CapGains
accounts SB account -Account- A only).
Have to produce specific authority letter/ certificate from the
Income Tax Officer of the respective jurisdiction
9 Transfer of account From one branch to another branch is allowed but not between
different banks.
10 Loan facility No. Neither be accepted as margin money / nor as collateral
11 Nomination facility Available (Up to 3 Nominees)
12 Auto renewal NOT available.
On maturity of TDR / STDR, the proceeds will be credited into
the Savings Bank Account opened under SBI CapGains Plus.
13 Max cash payment Rs. 25,000 /- per day
14 Conditions  Any amount withdrawn is required to be utilised for
specified investment within 60 days of withdrawal and
any unutilized amount subjected to tax / may be re-
deposited to Type A account immediately.
 No cheque book or debit card is issued
287
section Capital gains made on Category of person
54 Sale of residential house Individual or HUF
54B Sale of land used for agricultural purpose Individual or HUF
54D Compulsory acquisition of land and building Any taxpayer
54E Sale of any long-term capital asset Any taxpayer
54EC Sale of long-term capital asset being land or building or Any taxpayer
both
54F Sale of any long-term capital asset not being residential Individual or HUF
property
54G Transfer of asset (machinery, plant or building, land or Any taxpayer
right in land or building) in case of shifting of industrial
undertaking from urban area
54GA Transfer of asset/s (machinery, plant or building, land or Any taxpayer
right in land or building) in case of shifting of industrial
undertaking from urban area to Special Economic Zone
54GB Transfer of residential property Any taxpayer
SBI TAX SAVING SCHEME

1 Eligibility Resident Indians, Hindu undivided family, having PAN.
Joint accounts, minor.
2 Benefit Tax benefits under Sec. 80C of Income Tax Act.
3 Type of Account TDR / STDR
4 Period of Deposit Min – 5 years, Max 10 Years
(Lock in period – 5 years)
5 Available at All branches
6 Deposit amount Minimum - Rs. 1,000/- and in multiples of Rs. 100/- thereafter
Maximum – Rs. 1,50.000 /- in a Financial Year
7 Rate of interest As applicable to TDR / STDR
No additional interest to staff, Sr Citizen, Bulk, etc
8 TDS As applicable at prevalent rate. Form 15G/15H can be
submitted
9 Loan facility Not permitted upto lock in period of 5 years. Neither be
accepted as margin money / nor as collateral during the lock
in period
10 Transferability Allowed among branches
11 Pre-mature closure Not permitted upto lock in period of 5 years (except in case of
death of depositor)
288
Pradhan Mantri Suraksha Bima Pradhan Mantri Jeevan Jyoti
Yojana (PMSBY) Bima Yojana (PMJJBY)
1 Age group 18 – 70, Entry 18 -50(coverage upto 55)
2 Eligible persons SB account holders SB account holders
3 Auto debit date st
31 May 31st May
4 Period st
of 01 June to 31 Mayst 01st June to 31st May
coverage
5 Primary KYC Aadhaar Aadhar
6 Coverage Accident death: Rs. 2 lakhs Life cover – Rs. 2 lakhs
Permanent disability: Rs. 1 lakh (Both accident & Normal death)
(loss of an eyesight or loss of use
of a hand or foot)
Suicide death does not cover
7 Premium Rs. 20 /- p.a (inclusive of GST) Rs. 436 /- p.a (inclusive of GST)
8 Lock in period Nil 45 days
9 Insurance Rs. 18 /- Rs. 395 /-
company
10 Commission for Rs. 2 /- Rs. 41 /-
Bank
11 Commission for Rs. 1/- Rs. 30 /-
BC
Insurance National Insurance company Ltd SBI Life
Company
12 Other points Exit the scheme at any point may
re-join the scheme in future years
by submitting a declaration of
good health
13 If more than one Insurance cover will be restricted to Rs. 2 Lakh and the premium
account shall be liable to be forfeited
14 Due date for 1. regular enrolment on or before 30th of June
remittance of 2. in other cases, in the same month when received.
premium for
Banks
15 Position of NRI NRIs are eligible, but if a claim arises, the claim benefit will be paid to
the beneficiary/nominee only in Indian currency
(There is a lien clause in the rules of PMJJBY, which says that the risk cover will commence only after
the completion of 30 days from the date of first enrolment into the scheme by the member. The date
of enrolment means date of debit of premium in customer account. However, deaths due to accidents
will be exempt from this Lien Clause)
(The share of BC commission will be paid through CCPM module along with other commission payable
for the month)
In case of refund on account of wrong/erroneous registration at branches, the branch will send the
details to SBI Life directly. SBI Life will refund the premium amount viz. Rs 395/- and credit it to the
customer’s account. The branch will refund Rs 41/- by debiting Branch Miscellaneous Commission
Account (98353) and credit to customer account.
In case of request for withdrawal from scheme after registration, the premium for current year will be
forfeited. The branch will cancel the SI for future years.
For making payment branches have to visit the screen no. 29061 in B@ncslink after completing the enrollment
process
289
ATAL PENSION YOJANA (APY)
1 Target customer Poor, under-privileged, workers in the unorganised sector
2 Administered by Pension Fund Regulatory and Development Authority (PFRDA).
3 Age group 18 - 40
4 Guaranteed monthly Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 at the
pension age of 60 years
5 The monthly pension would be available to the subscriber, and
after him to his spouse and after their death, the pension corpus,
as accumulated at age 60 of the subscriber, would be returned
to the nominee of the subscriber
6 In case of premature 1. Spouse of the subscriber can continue contribution to APY
death of subscriber account, for the remaining period, till the original
(death before 60 subscriber would have attained the age of 60 years.
years of age), 2. If not wish to continue the account, he/she shall only be
refunded the accumulated pension wealth i.e.
contributions made by him to APY, along with the net
actual interest earned on his contributions
7 On death of the APY 1. The monthly guaranteed pension shall be payable to the
account subscriber spouse.
after 60 years 2. The nominee has to be someone else
8 Periodicity of Monthly/ Quarterly / Half-yearly basis

premium payment
9 If voluntarily exit Deduction of Government co-contribution and return/interest
thereon
10 Upgrade/ Downgrade once in a financial year
of Pension Amount upgrade - Higher amount needs to be deposited
down grade - additional contributions would be returned to the
subscribers
290
Pradhan Mantri Fasal Bima Yojana(PMFBY)
1 Purpose Provides a comprehensive insurance cover against failure of the
crops
2 Crops covered Notified crops only
3 Compulsory for Loanee farmers of KCC of notified crops
4 Optional for Non loanee farmers
5 Max premium payable Kharif Food & Oilseeds crops – 2 %
by farmers Rabi Food & Oilseeds crops - , 1.5%
Annual Commercial/Horticultural Crops. - 5%
6 Other important • The difference between premium and the rate of Insurance
points charges payable by farmers shall be shared equally by the
Centre and State
• The Scheme shall be implemented on an ‘Area Approach
bases.
• In case of majority of insured crops of a notified area are
prevented from sowing/planting the insured crops due to
adverse weather conditions that will be eligible for
indemnity claims upto maximum of 25% of the sum-
insured
• Three levels of Indemnity, viz., 70%, 80% and 90%
corresponding to crop Risk in the areas shall be available
for all crops
7 Weather Based Crop Same as PMFBY

Insurance Scheme
(WBCIS)
8 Unified Package • Include seven section Viz., crop Insurance
Insurance Scheme PMFBY/WBCIS), Loss of Life (PMJJBY), Accidental Death
(UPIS) & Disability (PMSBY), Student Safety, Household,
Agriculture implements & Tractor.
• Crop Insurance will be compulsory
• Processing of claims (other than Crop Insurance) on the
basis of individual claim report
291
MUDRA LOAN SCHEME - SALIENT FEATURES
“MUDRA Card”, which is a Debit card issued on RuPay platform, and provides hassle free credit
in a flexible manner.
Security
A. No collateral / Third party Guarantee
B. First charge on all assets created out of the loan extended to the borrower
C. MUDRA Guarantee cove (CGTSME)
Purpose of Mudra Scheme
List of businesses that are covered under Mudra scheme to perform income generating activities
are mentioned below:
➢ Commercial Vehicle
➢ Service Sector Activities,
➢ Food and Textile Product Sector Activities
➢ Business activities for Traders and Shopkeepers
➢ Equipment Finance Scheme for Micro Units,
➢ Agri-allied Activities:
Activities related to businesses in agri-clinics and agribusiness centres, food & agro-processing
units, poultry farming, pisciculture, bee keeping, sorting, livestock-rearing, grading, aggregation agro
industries, dairy, fishery, etc.
➢ Overdraft amounts of Rs 10000/- sanctioned under Pradhan Mantri Jan Dhan Yojana
(PMJDY) are also to be classified as MUDRA loans under PMMY
PMJDY OVERDRAFT
1 Eligibility criteria ➢ Applicant's age (between 18 to 65 years)
➢ Account at least six months old
➢ Account seeded with Aadhaar
➢ Account should have valid mobile number.
➢ The account should be active with regular credit. Credit
could be from DBT/DBTL/Any other credit from other
verifiable sources
2 Excluded ➢ Minors to be excluded.
➢ KCC/GCC borrowers to be excluded.
➢ The applicant should not be having any other SB account
with SBI.
3 Eligible loan amount Max Rs 10000 is arrived at on the basis of the following
criteria:
➢ 50% of credit summation during the last six months or
➢ Average balance for the last four months or
➢ Rs. 10000/- (whichever is less)
292
STAND UP INDIA (SUI)
1 Target customer SC, ST and women entrepreneurs
Purpose To meet all kinds of credit requirement for setting up Greenfield
projects under manufacturing, services, or the trading sector
2 Objectives To facilitate sanction of bank loans between Rs. 10 lakhs and
Rs. 1 crore to atleast one Scheduled Caste (SC) or Scheduled
Tribe (ST) borrower for setting up a Greenfield enterprise
3 Type of enterprise manufacturing, services or the trading sector
In case of non-individual enterprises atleast 51% of the
shareholding and controlling stake should be held by either SC /
ST or Women entrepreneur.
4 Type of loan Composite Loan (Working Capital facilities / Term Loan)
5 Loan amount Minimum – More than Rs. 10 lakhs Maximum – Rs. 1 crore
6 Repayment period Maximum of 7 years
(including moratorium period upto 18 months)
7 Margin Min – 10 %, Max – 25 %
8 Credit NCGTC (National Credit Guarantee Trustee Company Ltd.)
Guarantee/Collateral
293
MAHILA SAMMAN SAVINGS CERTIFICATE 2023
1 Eligibility By a woman for herself, or by the guardian on behalf of a minor girl to the Branch,
on or before 31st March 2025.
2 Type of An account opened under this Scheme shall be a single holder type account.
accounts
3 KYC PAN and Aadhaar of the customer (applicable to guardian only, if account opened
Documents on behalf of a minor). Also refer to e- Circular No.
NBG/GAD-GBU/13/2023-24 dated 5th July 2023.
4 Deposits • An individual may open any number of accounts subject to the maximum limit
for deposit specified as below and a time gap of three months shall be
maintained between the existing account and the opening of another account.
• Minimum of Rupees one thousand and any sum in multiples of Rupees one
hundred may be deposited in an account and no subsequent deposit shall be
allowed in that account.
• Maximum limit of Rupees two lakh (Rs. 2,00,000) shall be deposited in an
account or accounts held by an account holder.
At customer level, the maximum amount of deposit cannot exceed Rs.

2,00,000.
5 Interest 7.5 % p.a, compounded quarterly percent per annum (not in consonance
with the provisions of this Scheme shall be payable at the rate applicable to
the Post Office Savings Account)
6 Payment Mature on completion of two years from the date of the deposit (Round off
on maturity to nearest rupee)
7 TDS Applicable as per IT Rule Section 194A
8 Withdrawal Maximum up to 40% of the Eligible Balance once after the expiry of one
from year from the date of opening of the account but before the maturity of the
account account.
In case of an account opened on behalf of a minor girl, the guardian may
apply for withdrawal for the benefit of the minor girl by submitting the
certificate to the Branch.
9 Premature a) On the death of the account holder

closure of b) In cases of extreme compassionate grounds such as medical
account. support in life-threatening diseases of the account holder or death
of the guardian,
(Where an account is prematurely closed as detailed above,
interest on principal amount shall be payable at the rate applicable
to the Scheme for which the account has been held.)
Premature closure of an account may be permitted, any time after the completion
of six months from the date of opening of an Account, for any reason other than
provided above, and in which case the balance as stood from time to time in the
account shall be eligible only for the interest rate less by two per cent than the rate
specified in this Scheme
294
Jansamarth – A National Portal For Government Sponsored
Schemes
https://www.jansamarth.in/home
The Government has launched “Jan Samarth” Portal on 06.06.2022 to provide a common platform
for availing loan under certain credit-linked Government schemes.
It connects all stakeholders like beneficiaries, financial institutions, Central/State Government

Agencies, and Nodal Agencies on a common platform..
The portal majorly covers all type of loan category and incorporated all major central government
sponsored schemes.
• For pursuing studies in and outside India

• Eligible courses ranging from graduation to PhD
Education
• Focus on Students from economically weaker section of
Loan
society
3 scheme(s) Available
• Loans for setting and expanding up businesses

Business Activity • Scheme wise benefits based on gender, social category and
Loan type of business
6 Scheme(s) Available
• Loan for individuals and self help groups(SHGs)

• Promotes livelihood opportunities for both the rural and
Livelihood Loan
urban poor
• Mobilizations of finance for post-harvest management

and agricultural consulting
Agri
• Loans for development of agricultural infrastructures,
Loan
clinics, and business centers
295
GOVERNMENT SCHEMES
1 What is the minimum pension guaranteed by the Govt of India under the Atal
Pension Yojana?
a) Rs. 1000 b) Rs. 2000
c) Rs. 3000 d) Rs. 5000
2 What is the minimum age at which a subscriber can join the Atal Pension
Yojana?
3 What is the maximum age at which a subscriber can join the Atal Pension
Yojana?
4 What is age at which subscriber will be eligible for pension under the Atal
Pension Yojana?
5 What is the annual premium payable by the subscriber to the Pradhan Mantri
Jeevan Jyoti Bima Yojana?
a) Rs. 210 b) Rs. 436
c) Rs. 450 d) Rs. 510
6 What is the insurance cover payable to the nominee on the death of the
subscriber to the Pradhan Mantri Jeevan Jyoti Bima Yojana?
a) Rs. 50000 b) Rs. 100000
c) Rs. 150000 d) Rs. 200000
7 Entry to the Pradhan Mantri Jeevan Jyoti Bima Yojana is not allowed after
the age of -
8 What is the minimum age for joining the Pradhan Mantri Jeevan Jyoti Bima
Yojana?
9 What is the age after which the benefit of insurance will not be available to the
subscriber to the Pradhan Mantri Jeevan Jyoti Bima Yojana?
10 What is the amount payable to the subscriber on attaining the age of 55 years
under the Pradhan Mantri Jeevan Jyoti Bima Yojana?
a) Full amount subscribed b) Full amount subscribed with 4%
interest
c) 50% of the amount subscribed d) No amount is payable
11 What is the annual premium payable under the Pradhan Mantri Suraksha Bima
Yojana?
a) Rs. 20 b) Rs. 15
c) Rs. 18 d) Rs. 12
12 What is the insurance cover provided to the subscriber of the Pradhan Mantri
Suraksha Bima Yojana in case of accidental death or full disability?
a) Rs. 100000 b) Rs. 150000
296
c) Rs. 200000 d) Rs. 250000
13 What is the age group to whom the Pradhan Mantri Suraksha Bima Yojana is
available?
a) 18 to 40 years b) 18 to 50 years
c) 18 to 60 years d) 18 to 70 years
14 What is the insurance cover provided to the subscriber of the Pradhan Mantri
Suraksha Bima Yojana in case of partial disability?
a) Rs. 100000 b) Rs. 150000
c) Rs. 200000 d) Rs. 250000
15 What is the insurance cover provided to a holder of Pradhan Mantri Jan Dhan
Yojana account in case of accidental death?
a) Rs. 20000 b) Rs. 40000
c) Rs. 50000 d) Rs. 100000
16 What is the overdraft allowed to the account holder after 6 months of
satisfactory operation of Pradhan Mantri Jan Dhan Yojana account?
a) Rs. 3000 b) Rs. 10000
c) Rs. 7000 d) Rs. 5000
17 What is the slogan of the Pradhan Mantri Jan Dhan Yojana?
a) Sabka Saath Sabka Vikas b) Beti Bachao Beti Padhao
c) Kal ki Fikr Nahin d) Mera Khata Bhagya Vidhata
18 Upto what age of the girl child can an account under the Sukanya Samriddhi
Yojana be opened?
19 For how many years can deposits be made in an account under the
Sukanya Samriddhi Yojana?
20 What is the maximum number of accounts a natural or legal guardian can open
for his girl children under the Sukanya Samriddhi Yojana?
a) One b) Not more than Two at any cause
c) Generally two and Three Only in d) Equal to number of girl children
the case of twin girls at the second
birth or triplets girls in the first birth
21 What is the minimum annual deposit to be made in an account under the
Sukanya Samriddhi Yojana?
a) Rs. 1000 b) Rs. 750
c) Rs. 500 d) Rs. 250
22 What is the maximum amount that can be deposited in a year in an account
under the Mahila Samman saving certificate?
a) Rs. 100000 b) Rs. 200000
c) Rs. 150000 d) Rs. 500000
23 What is the animal in the logo of Make in India campaign?

a) Tiger b) Lion
c) Elephant d) Cow
24 Which State has been allocated the maximum number of cities under the Smart Cities
Mission?
a) Uttarpradesh b) Maharastra
297
c) Tamilnadu d) Gujarat
25 SPARSH -
a) System for Pension Administration b) Special Pension Administration
Rapid Scheme Honour Raksha
c) System for Pension Administration d) None of the above
(Rakhsa)
26 In case of a joint account in Senior Citizen Saving Scheme, the age of which account
holder shall be considered to determine the eligibility to open the account
a) Age of the spouse b) Age of the First account holder
c) Either (a) or (b) d) Joint account can not be opened
27 Retired personnel of Defence Services (Excluding Civilian of Defence
employees) shall be eligible to open an account under SCSS on attaining the
age of
28 Who administers Atal Pension Yojana ( APY)
a) LIC b) National Insurance
c) PFRDA d) IRDAI
29 PMAY other than CLSS is extended upto
a) 31.12.2024 b) 31.03.2024
c) 31.12.2023 d) 31.03.2025
30 _______ is being implemented for meeting the pension sanction and
disbursement of Armed forces Viz., Army, Navy, Defence civilians
a) SPARISH b) SPARSH
c) Jeevan Praman d) Pension-One
ANSWERS
1 2 3 4 5 6 7 8 9 10
Q
A C B D B D B A B D
ANS
11 12 13 14 15 16 17 18 19 20
Q
A C D A D B D C C C
ANS
21 22 23 24 25 26 27 28 29 30
Q
D B B A C B A C A B
ANS
Back to Index page
298
Digital Banking / IT Products

DIGITAL & TRANSACTION BANKING : EXERCISE – 1
1 Yono Cash facility is available for self-withdrawal at Yono Cash Points. However,
which of the following statements regarding YONO-Cash is correct?
a) Maximum of 1 active transaction is b) Maximum of 2 active transaction is permitted
permitted in a day in a day
c) Maximum of 3 active transaction is d) There is no restriction for number of active
permitted in a day transactions
2 If a customer’s NFS request had to be dealt in yono Branch Interface, who had to fill
the NFS request?
a) The Customer is not required to fill b) The Customer is required to fill Request Form
Request Form, a pre-filled system
generated request to be signed by the
customer
c) The Branch is required to fill Request d) The form will be filled by either customer or
Form branch. However, it must be signed by the
customer
3 Who are permitted to open Digital Savings Account through YONO App/Portal?
a) Resident Indian individual above age b) Non Resident Indian (NRI) individual above
of 10 years holding valid Aadhaar and age of 18 years
PAN Card
c) Resident Indian (RI) individual above d) Options b & c are correct.
age of 18 years holding valid Aadhaar
and PAN Card
4 Which one of the following options is not the part of Quick Payments in YONO App?
a) Scan & pay b) Bill pay
c) Pay to Bank account d) Yono Cash
5 Which type of the SB account does not exist in YONO platform?
a) INSTA b) DIGITAL
c) REGULAR d) INSTANT
6 Which one of the following is not the platform for KCC Review?
a) Yono Mobile App b) Yono web portal
c) By visiting the branch d) Yono Branch Portal (YBP_SSO)
7 How many vernacular languages are available to change the language settings of
YONO Krishi?
a) 4 b) 8
c) 10 d) 12
8 Which one of the following options is not true regarding YONO Krishi Gold Loan?
a) Customer can submit gold loan b) At the end of the application process,
application online through YONO customer has been able to generate a
Krishi reference number in YONO Krishi
c) The validity of the reference number is d) Customer may send his representative for
15 days from the date of generation availing gold loan
9 Which of the following is a vertical of YONO Krishi?

a) Khata b) Khata Plus
c) Vistaar d) Vyapaar
299
10 What is the nomenclature of OMP section in YONO Krishi?
a) Mandi b) Mitra
c) Krishi d) Bachat
11 Yono Business is an integrated platform for which of the following corporate facing
applications?
a) CINB and CMP only b) CMP and SCF only
c) SCF, eTrade and eForex only d) CINB, SCF, eTrade, CMP and eForex
12 How do you register Single user entities for Yono Business?
a) Such registration can be done in CBS b) Such registration can only be done online
only
c) Single user corporates can either d) Single user corporates are not covered in
apply online or approach the branch Yono Business
for registration at branch
13 A school nearby has approached your branch to register for Corporate Internet
Banking. In which interface will the branch do the registration?
a) Branch INB interface b) Yono Business Branch Interface
c) CBS interface d) CMP interface
14 In CRM, for Asset products which of the following roles are available?
a) Branch Manager (BM) b) Relationship Manager(RM)
c) Lead Advances (LA) d) All of these
15 In CRM, what is known as liabilities?
a) All Deposits b) Loans except Home loans
c) All Loans d) All of the above
16 In CRM, which of the following products are included in the Liability layout?
a) Savings Accounts b) Current Accounts
c) Term Deposits d) All of the above
17 CRM application is used by
a) Bank staff b) Customers
c) Call center executives d) Both a & c
18 Which is not one of the main functional areas envisaged in CRM?
a) Sales b) Marketing
c) Service d) Parameter Setting
19 How many finger(s) biometric authentication will be captured while opening the
accounts in CBS?
a) One finger b) Two Fingers
c) Three Fingers d) No Biometric authentication
20 What is the aggregate Balance to be maintained when accounts are opened with the
help of OTP?
a) Rs 50,000/- b) Rs 1,00,000/-
c) Rs 1,50,000/- d) Rs 75000/-
21 Within how many months the biometric authentication has to be completed when
accounts are opened through OTP Mode?
a) Within 10 months b) Within 6 months
c) Within 12 months d) No need to give biometric
22 What is the main objective for enrolling e-KYC at CSPs?

a) For credit of Direct Benefit Transfer b) For receiving agricultural subsidies
amounts.
c) For allowing the customers for funds d) None of the above
transfer in simple manner
300
23 What is the mode of operation in Digital Savings Account in Project Lotus?
a) Both or Survivor b) Any one or survivor
c) Either or Survivor d) Single only as accounts are not opened in
joint names.
24 Which of the statements is not true about YONO Lite App?
a) Lighter version of YONO app b) It requires registration and activation code
for authentication
c) Customer can register for Retail d) One of the features, 'Quick Transfer' where
Internet Banking through ATM/Debit the Customer may send the money by
card and then download the adding beneficiary upto Rs.10000/-
application for use
25 Per day transaction limit in case of third-party transfer within SBI and Interbank
transfer – NEFT through YONO Lite App is ______________
a) Rs.10 lakh & Rs.50 lakh b) Rs.50 lakh & Rs.50 lakh
c) Rs.50 lakh & Rs.10 lakh d) Rs.10 lakh & Rs.10 lakh
26 Which of the statement is not true about YONO Lite App?
a) Per day transaction limit for Credit b) Per day transaction limit for third party
Card VISA Transfer is Rs.1 lakh transfer within SBI Transfer is Rs.10 lakh
c) Per day transaction limit for IMPS is d) Per month transaction limit for SBI Life
Rs.5 lakh Premium is Rs.50,000/-
27 Which non-financial transaction is not available under YONO Lite App?
a) Cheque Book request b) TDS enquiry
c) Request for Account opening d) Disable UPI transactions
28 What is mPassbook in YONO Lite App?
a) To view only 100 latest transactions of b) To generate mini statement
account
c) Option to maintain electronic d) Option to make a request to send the
passbook in Mobile Passbook in Mobile phone
29 In BHIM SBI Pay, in case of Mobile device change and/or SIM change, the revised limit
per day reduced to?
a) Rs.10000/- for first 7 days b) Rs.2000/- for first 7 days
c) Rs.5000/- for 1 day d) Rs.1000/- for 1day
30 Which is not the pre-requisites for BHIM SBI Pay in the following options?
a) All the customers having any account b) Customers who have downloaded BHIM
with any bank app
c) Valid email address or Alternate d) Details of debit card linked to the account
Mobile No required for UPI PIN setup
31 Which option is not true for BHIM SBI Pay?
a) Virtual Payment Address(VPA) is one b) Account number & IFSC Code is one of the
of the option payment options
c) QR Code is one of the payment d) MMID is one of the payment options
options
32 What is the maximum transaction limit per day on BHIM SBI Pay?
a) Rs.200000/- b) Rs.100000/-
c) No such limit d) Rs.500000/-
33 A customer wants to register for our BHIM SBI Pay. The customer was explained about
the pre-requisite for the registration. What is not compulsory in Registration process
for BHIM SBI Pay?
a) Selecting the Bank and Account b) Creation of Virtual Payment Address
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number
c) Creation of 6 digits PIN d) Mobile & Aadhar Linked A/C
34 What are the major card schemes that can be used in Bharat QR ?
a) Visa b) Mastercard
c) RuPay d) All options are correct
35 From where, one can access the Bharat QR for making payments?
a) Any branch of SBI b) Yono Lite login page

c) Retail Internet Banking homepage d) Any ATM of SBI
36 What are the options available to SBI customers for logging in to Bharat QR?
a) Credit card users b) Debit card users
c) Internet Banking users d) Both b & c
37 Under NUUP which number need to be dialled by the customer?
a) *121* b) *595#
c) *511# d) *99#
38 *99# is initiative of____
a) RBI b) MeITy
c) NPCI d) SBI
39 What is handle for G-Pay?
a) @sbiok b) @oksbi
c) @sbi d) @upi
40 Which Bank is not the partner of G-Pay?
a) ICICI Bank b) SBI
c) PNB d) AXIS Bank
41 What is the daily transaction limit in G-Pay for transfer of money?
a) Rs.10000/- b) Rs.50000/-
c) Rs.100000/- d) Rs.200000/-
42 Presently in how many languages G-Pay App provides the services?
a) 2 b) 5
c) 9 d) 13
43 How to register for missed call banking facility?
a) SMS need to send as 'REG <space> b) SMS need to send as 'REG <space> Mobile
Account number' number'
c) SMS need to send as 'REG <space> d) None of these
Aadhaar number'
44 Which option is not available under SBI Quick?
a) ATM Card blocking b) Account Statement through e-mail
c) ATM Card ON/OFF d) Disable accounts for UPI transaction
45 What is SBI Quick app?
a) App version of missed call banking b) App version of NUUP service
c) App version of Phone banking d) None of the above
46 Which mode is not available in SBI Secure OTP App?
a) Online b) Offline
c) Both are available d) None of these
47 How to register in SBI Secure OTP?
a) Through debit Card b) Through CBS
c) Through INB credentials d) Both a & c
48 The transaction initiated from which of the following mode requires SBI Secure OTP?
a) YONO b) YONO Lite
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c) BHIM SBI Pay d) Merchant transaction through YONO
49 What is SBI Rewardz?
a) It is a Financial App by SBI b) It is a Financial App only for enquiry by SBI
c) Reward points to SBI customers for d) It is an App to claim Cash back by BHIM SBI
their everyday transactions across Pay app
multiple banking channels
50 SBI Rewardz do not offer points through which of the Banking channels?
a) Internet Banking b) Debit card
c) Corporate Internet banking d) SBI Samadhaan
51 How much reward points new user can earn for RINB?
a) 10 b) 25
c) 50 d) 100
52 How much reward points new user can earn for CINB?
a) 50 b) 100
c) 200 d) 500
53 Which one of the following are the charges recovered by the Acquiring Bank from the
Merchant under MAB?
a) Commitment charges b) De-installation charges
c) Adaptor replacement charges d) All the Above
54 What is MDR?
a) Discount given to customers b) Extra commission charged from customers
c) Rate of Commission charged by the d) Rate of discount offered to bank staff
Acquiring bank on each transaction
55 Retrieval Request may be raised by Master/VISA Card holders up to how many months
from the date of transaction?
a) 12 b) 18
c) 13 d) 6
56 Which role holder in the MAB workflow acts as a link between SBI and TSPs?
a) Recommender b) Controller
c) Approver d) Mab Approver
57 Which one of the following is not an Administrator role in Branch Module of MAB
Workflow?
a) Branch Administrator b) Regional Administrator
c) Zonal Administrator d) Circle Administrator
58 Bharat QR code contains which of the following information?
a) Merchant ID b) Terminal ID
c) Merchant name d) All the above
59 Which one of the following is not a requirement for accepting Bharat QR payments?
a) Smart Mobile phone with Bharat QR b) Smart Mobile dongle
SBI Merchant application installed on
phone
c) Account with SBI d) Bharat QR Code displayed
60 Which one of the following a Merchant need to pay for availing Bharat QR payment
facility?
a) Monthly service fee b) One-time installation fee
c) MDR d) Commitment charges
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61 Which one of the following is the main factor of authentication for the BHIM Aadhar
Merchant payments?
a) PAN b) Biometrics
c) Debit Card d) PIN
62 Payments processed under BHIM Aadhar SBI Merchant app are based on which
platform?
a) NEFT b) RTGS
c) AEPS d) IMPS
63 What is the timeline to receive payment by the Merchants for BHIM Aadhar SBI
transactions?
a) T+1 b) T+2
c) S+1 d) Real Time
64 For the purpose of RFIDs, NHAI has divided all vehicles into how many categories?
a) 5 b) 6
c) 7 d) 8
65 Which of the following are charges for an SBI FASTag customer?

a) Issuance Fee b) Minimum balance in card
c) Refundable Security amount d) All the above
KEY TO EXERCISE -1
Q 1 2 3 4 5 6 7 8 9 10
ANS b a c d d c d d a a
Q 11 12 13 14 15 16 17 18 19 20
ANS d c b d a d d d a b
Q 21 22 23 24 25 26 27 28 29 30
ANS c a d d d d c c c b
Q 31 32 33 34 35 36 37 38 39 40
ANS d b d d b d d c b c
Q 41 42 43 44 45 46 47 48 49 50
ANS c c a d a b c b c d
Q 51 52 53 54 55 56 57 58 59 60
ANS c c d c c d c d b c
Q 61 62 63 64 65
ANS b c d c d
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EXERCISE – 2
1 In CBS, management of security forms has also been made a part of the
software/system through menu- VPIS. The term VPIS stands for
a) Valuable Paper Industry Sector b) Valuable Paper Inventory System
c) Valuable Paper Instrument System d) Valuable Paper Instrument Sector
2 CMP stands for
a) Cash Management Product b) Classified Management Product
c) Collection Management Product d) Clearing Management Product
3 In Core Banking Solution, a 'Vault Teller' means
a) Branch Manager b) Cash Officer
c) Accountant/Joint Custodian d) All of the above
4 Exim bills is the software for handling trade finance transactions, and it is
procured from ___
a) China Systems, Taiwan b) Oracle
c) Comlink, USA d) Financial Network Services
(FNS), Australia
5 Core Banking Solution-Hardware installed at CDC has been acquired from
a) Wipro b) HP Systems, USA
c) TCS Ltd. d) PCS Ltd
6 Centralized Data Base/Main Server for Core Banking Branches has been
situated at
a) All LHOs b) FD, Kolkata
c) SBIIT, Hyderabad d) Central Data Centre at Belapur,
Mumbai
7 The first branch of State Bank of India where Core Banking was started is
a) PBB- Kolkatta b) Hiranandani, Mumbai
c) PBB Chennai d) PBB-Hyderabad
8 Remittance through Fxout is available to resident Indians under
___________of RBI. Remittance from NRE/FCNR (B) account can also be
processed through Fx-Out.. However, remittance from ____ account is not
permitted under Fx-out
a) Liberalized Remittance Scheme b) Liberalized Remittance Scheme
(LRS), NRO (LRS), Savings bank account
c) Liberalized Remittance Scheme d) Liberalized Remittance Scheme
(LRS), NRI (LRS), RFC
9 TRS app has been introduced in CBS to ensure timely and correct TDS
deduction, remittances and reporting and proper handling of TDS related
notices/orders, bank has decided to centralize handling of TDS w.e.f. 1st
April, 2017. What is full form of TRS?
a) Tax reporting system b) TDS Reviewing system
c) TDS Reporting System d) None of the above
10 The acronym of “CORE' is
a) Centralised Operations b) Centralised Online Response
Response Engine Environment
c) Centralised Online Real-time d) Centralised Offsite Response team
Environment
11 B@ncsLink software is a __________

a) Transaction Software for front b) Software for trade finance
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office
c) Transaction software for CDC and inter d) Maintains of centralized database
Branch transactions
12 B@ncs24 software is a _______
a) Transaction Software for front b) Software for trade finance
office
c) Transaction software for CDC and inter d) Maintains of centralized database
Branch transactions
13 “Finance One” software is to
a) Maintain Database b) Maintain Trade finance
c) Maintain CGL d) Maintain BGL
14 The Disaster recovery site is located at ___ for CBS and INB
a) Hyderabad b) Bangalore
c) Chennai d) Mumbai
15 The Disaster recovery site is located at ___ for ATM
a) Hyderabad b) Bangalore
c) Chennai d) Mumbai
16 What is SAN?
a) Short Account Number b) Smart Account Number
c) Smart Access number d) Short Access number
17 ADS stand for
a) Active Dialling Service b) Active Directory Service
c) Active Dialling System d) Active Directory System
18 Finacle software is procured from _____
a) Comlink, USA b) Infosys
c) TCS d) HCL, UK
19 Corporate General Ledger – Finance One is procured by
a) Accenture Ltd, London b) COMLINK, USA
c) SATYAM/MAHINDRA, India d) SIFY Solutions, Japan
20 Roopantar is a modified version of
a) Mobile banking application b) Internet banking application
c) .CBS application d) Core banking solutions
21 What is the name of the software used for online forex rates
a) CBS Roopantar b) SFMS
c) Mercury FX d) Exim Bills
22 (ADS) Active Directory Services developed by
a) Infosys b) GITC Belapur
c) Microsoft d) TCS
23 What is Metagrid?
a) It is a computer security grid b) It is a CBS server maintained New Delhi
as a back-up
c) It is related to service charges for forex d) Metagrid is web-based software
related services application for retail sale of gold coin
24 GLCNTR report is used for reconciliation of ____________
a) System Suspense Account b) Cash
c) ATM d) Forex General Account
25 ____________report is used for reconciliation of Glif (cash) entries
a) System Suspense Accounts b) Irregularity Report
c) Glcomp d) ATM
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26 Every day after EOD, ____________ generates a set of reports for each Branch
and these are transmitted through ftp
a) CDC b) LHO
c) Branch d) None of the above
27 Branch Server is identified by an IP Address like ftp://A.B.C.D where C stands
for
a) LAN b) Network
c) SERVER d) CAP
28 Branch Server is identified by an IP Address like ftp://A.B.C.D where D stands
for
a) LAN b) Network
c) SERVER d) CAP
29 The Branch Server which is identified by an IP Address like ftp://A.B.C.D where
A is __________ .
a) LAN b) Network
c) SERVER d) CAP
30 Branch Server is identified by an IP Address like ftp://A.B.C.D where B stands
for
a) LAN b) Network
c) SERVER d) CAP (City Aggregation Point)
31 EOD is done by_________
a) Branch b) ITS Department, Corporate Centre
c) CDC, Belapur d) . None of these
32 CGL 1148 is related to which head_________________
a) Branch Suspense Accounts – Credit b) System Suspense Accounts – Credit
Entries
c) Cash Balance Account d) CIBA Account
33 CGL account starting with 2148 stands for ____________
a) System Suspense Accounts – Debit b) Savings Bank Accounts – Per
Entries Segment
c) Current Accounts d) Charges Account
34 Full form of BIAK

a) Built-in Authentication Key b) Bit In Authentication Key
c) Byte in Authentication Key d) Botnet In Authorisation Key
35 Full form of VIRUS
a)Virtual Internet Reuter Uninterrupted b) Vital Information Resources Under

System Siege
c) Virtual Intranet Reuter d) None of these
Uninterrupted System
36 CCDP stands for ______________
a) Centralised Credit Data Processing b) Credit Centralised Data Processing
c) Credit Confirmation Data d) None of the above
Processing
37 Score of CIF in CBS for KYC is____________

a) 80 b) 200
c) 110 d) 100
38 In CBS, GLIF stands for
a) General Ledger Interface File b) General Ledger Intranet File
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c) General Ledger Internet File d) None of these
39 In CBS, GLCC represents
a) General Ledger Confidential Code b) General Ledger Classification Code
c) General Ledger Confidential d) None of these
Classification
40 IBCH in CBS stands for
a) In-Branch Cash Handling b) Inter Branch Cash Handling
c) Internet Based Cash Handling d) None of the above
41 Under account segment code 0806 refers to
a) Per-Dom-Pub b) Per-Dom-Staff
c) Per-NRI d) C & I
42 In NEFT the settlement is on DNS basis, what is DNS?
a) Data Network Server b) Digital Network Software
c) Deferred Net Settlement d) None of these
43 Minimum/ Maximum Amount that can be remitted through RTGS
a) No Minimum & No Maximum b) Minimum Rs 1 Lac & No Maximum
c) Minimum Rs 50,000/- & Maximum d) Minimum Rs 2 lac & No Maximum
Rs 100 Lac
44 Anti-virus used in our bank is
a) Symantec b) Mcafee
c) Foxpro d) Trend Micro
45 Expand TLC
a) Tech Leading center b) Tech Learning Centre
c) Tech Lending Center d) Tech Learning Cell
46 Expand IMPS
a) Immediate Payment Service b) Immediate Payment Section
c) Immediate Payment Solutions d) Intermediate payment Solutions
47 HTTP stands for
a) Hyper text Transfer protocol b) Hyper Test Transfer protocol
c) High Text Transfer protocol d) High Test Transfer protocol
48 Which one of the following is not a part of CEEP?
a) QMS b) Grahak Mitra
c) Branch Choreography d) CMS
49 NPS (Net Promoter Score) in CEEP represents
a) Customer’s experience in current b) Score given to the BM for effective
visit implementation of CEEP
c) Feedback score given for d) Customers who are likely to
a particular transaction recommend SBI
50 The link to the new Debit Card Management System (DMS) is available in the
a) CBS b) INB
c) ATM d) YONO
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KEY TO EXERCISE – 2
Q 1 2 3 4 5 6 7 8 9 10
ANS B A C A B D B A C C
Q 11 12 13 14 15 16 17 18 19 20
ANS A C C C A A B B B D
Q 21 22 23 24 25 26 27 28 29 30
ANS C C D A C A A C B D
Q 31 32 33 34 35 36 37 38 39 40
ANS C B A A B A C A B A
Q 41 42 43 44 45 46 47 48 49 50
ANS C C D D B A A D D A
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EXERCISE - 3
1 Who is responsible for security of Desktop/Laptop/Server

a) System Administrator b) User
c) Department Head d) Security Officer Head
2 If a user requires any change in hardware or software settings whom he/she
should contact
a) IT Head b) Head of Department
c) System Administrator d) Supplier of Hardware/Software
3 Information Security is all about ensuring
a) Confidentiality of Data & Services b) Integrity of Data & Services
c) Availability of Data, Non-Repudiation d) All of the above
& Services
4 To prevent unauthorized access while desktop is unattended, which
measure is most suitable
a) Shutdown the desktop b) Lock the keyboard/mouse
c) Lock the Desktop/ Enable the d) Power off the monitor
screensaver with password
5 How can a user protect sensitive data on laptop in the event of loss of laptop
a) By creating hidden files/folders b) By enabling Boot level power-on password
c) By enabling screensaver d) By using encryption
6 In the event of loss of laptop whom should be contacted immediately
a) Police station b) Controller & Information Security
Department
c) Insurance Company d) Bank’s Security Officer
7 A good password is
a) Name/short form of name/initials b) Names of family /friends / colleagues /
institution
c) Combination of alphabets and d) Combination of alphabets, numbers and
numbers special characters
8 If Internet is misused from a user’s desktop, who is responsible
a) The person who has misused b) The user whom the desktop belonged to
c) The department where the desktop d) IT-Networking department
is located
9 Which one is not suggested while enabling a browser
a) Set browser security setting to b) Configure browser to remember web
medium application passwords
c) Enabling ID displays in web d) Maintaining history of URLs
applications
10 Which of the under mentioned is a good practice to prevent revelation of sensitive
information
a) Reading confidential documents in b) Working on laptops in public places
public places
c) Not answering to queries over d) Providing information to
phone to unverified persons vendors/suppliers
11 Information Security Department is headed by
a) CGM Risk Management b) DMD & CRO
c) Chairman d) CGM & Group CISO
12 Who is responsible for selection of encryption technology for Data security
310
a) Head of department b) Head of IT department
c) Information Security Department d) Application owner in consultation with ISD
(ISD)
13 What method(s) can be used to protect sensitive data from prying eyes?
a) Passwords b) File Permissions
c) Encryptions d) All of the above
14 Who is authorized to block ports through firewall
a) IT-Networking dept. as advised by b) ISD
ISD
c) Service Provider d) System Administrator
15 Which device should be installed to monitor the traffic from external networks
a) Switch b) Router
c) Firewall d) Intrusion Detection System
16 Are you free to do whatever you want with your network-connected computer?
a) Yes, It’s my personal computer and b) No. I have to be a responsible member of
I can do what I please the networked community and am bound
by the George Mason Responsible Use of
Computing Policy
c) No. I have to be a responsible d) Both b and c.
member of the networked
community, which includes being
aware of the Wireless Network
Policy
17 ISC stands for
a) Information Security Council b) Information Security Corporation
c) Information Security Committee d) None of the above
18 Security incidents should be reported by Branch Manager to
a) IT-RMD through service desk b) Regional Manager
c) Security Officer d) None of the above
19 Which register is used to record the detail of changes and amendments of user
type, capability, user reset and forced closures?
a) User Control Register b) User Access Register
c) Hardware Access Register d) System Room Access register
20 What is biggest Vulnerability to computer information Security?
a) End Users b) Instant Messaging, Peer tp Peer (P2P)
application
c) Malware-virus, worm, spyware d) Spam, Phishing attack
21 Where can an employee find details related to information security on our intranet
a) In SSO b) In Service Desk
c) In SBI Times > Department > d) IN Trade Finance
information Security
22 Failure of Bank‘s computer system as per Basel II norms is attributable to which
type of risk
a) System Risk b) Operational Risk
c) Computer Risk d) Technology Risk
23 Unauthorised intrusion by outsiders into a computer or Network is
a) Phishing b) Vishing
c) Spam d) Hacking
24 People without internet access and people with internet access, what do we call the
divide
a) Demographic Divide b) Digital Divide
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c) Netizen Divide d) None of these
25 What is Spam?
a) Data Interception b) A kind of Cyber Crime
c) Data Theft d) Irrelevant and unsolicited messages
sent/received over internet typically to a
large number of users for the purpose of
phishing / spreading malware
26 Phisher means________
a) Persons targeting the customers of b) Hacker
the Bank
c) Social Engineering Crime d) None of these
perpetrator
27 Information Security is all about ensuring CIA which stands for
a) Criticality; Information & Availability b) Confidentiality; Integrity & Availability
c) Confidentiality; Integrity & d) Confidentiality; Innovation & Availability
Applicability
28 Safeguarding the accuracy and completeness of information and processing
methods means __________
a) Confidentiality b) Integrity
c) Accountability d) Availability
29 Information is accessible only to those authorized to have access means _____
30 Authorized users have access to information and associated assets as per
commitment when required refers to _________
31 Maintaining CIA in the true spirit is the responsibility of
a) System Administrator b) Bank Management
c) Branch Manager d) All of us collectively
32 Users’ compromising one / many of CIA –by act of commission or omission would
lead to
a) Good Customer Service b) Enhancement of Business
c) Technological or Operational frauds d) Violation of Business Rules
33 The “IS Policy, IT Policy and related Procedures and Guidelines” is approved
by_______________
a) Shareholders b) DMD (IT)
c) CGM (IT) d) Board of Directors
34 Technology enabled the Bank to provide access to users on________________
a) Need to Have Basis b) “Need to Know” basis
c) Need to Know” or “Need to Have” d) “Need to Know” and “Need to Have” basis
basis
35 Firewalls, Intrusion Detection / Prevention Systems, Web Application Firewalls, Anti-

virus, Active Directory Setup, Biometric Authentication System, Internet Proxy
Gateway, Patch Management system, Privileged Identity Management, Anti-Phishing
are all_______________
a) Components used in Hardware b) Various Security Tools / Technologies
deployed by the Bank
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c) Network Components d) None of these
36 SBSOC in the context of IS Security stands for
a) State Bank System Operations b) State Bank Strategic Operations Centre
Centre
c) State Bank Security Operations d) None of these
Centre
37 The SBSOC has been setup for _____________
a) Avoid System Risks b) Meet the Competition in IT
c) Data requirements of RBI d) Real-time Monitoring, Analysis, Correlation
and Incident Management based on the
logs generated by IT Assets
38 Bank has achieved various Global Accreditation ISO 27001______________

a) IT Hardware Procurement b) Information Security Management Systems
(ISMS)
c) Cloud Computing Management d) None of these
39 ____________ are dynamically generated and displayed in uneven form, uneven
location by websites
a) ADS b) GUI
c) CAPTCHA d) None of these
40 Websites use CAPTCHA to protect against
a) Dictionary Attack b) VIRUS
c) SPAM d) HACKING
41 Password should be changed at least once in _____ days or when you _________
a) 90 days; suspect it has b) 30 days; suspect it has been compromised
been compromised
c) 45 days; suspect it has been d) None of these
compromised
42 Email sent from Bank provided email ID is as good as letter on_________
a) Bank’s letter head b) a personalised Email
c) Mail from Corporate Centre d) None of these
43 Confidential or secret information should be _________________when transmitted
over email
a) Encrypted or password protected b) Sent through SMS and Email
c) Always sent by fully sealed hard d) Personally sent through an Official
copy letters
44 ______is a mechanism by which the sender encrypts the message by using
“Public” key of intended recipient. The recipient applies own “Private” key to
decrypt the message.
a) ADS b) Digital Signature
c) Ethical Hacking d) None of these
45 By using Digital Signature,________________ is ensured

a) Acknowledgement of the recipient b) Bank’s interest alone is protected
c) “Non Repudiation” d) Hacking cannot be done
46 Emails that are not digitally signed should not be used for
a) Critical transactions requiring legal b) Official Purposes
authentication of sender
c) Personal Purpose d) Any Purpose
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47 Providing email ID to any mailing lists / internet websites / Internet newsgroup /
discussion board might result into receiving emails like marketing, lottery, draws,
phishing etc. called as ______________
a) Hacking b) Cyber Theft
c) Intrusion d) SPAM
48 Computer Security Day is on_________
a) 1st Nov b) 15th Nov
th
c) 30 May d) 30th Nov
49 ISO carries out the ‘Identify’ and ‘Prevent’ functions of NIST framework for Cyber
Risks and ensures against any exploitation on Confidentiality, Integrity, and
Availability. ISO stands for
a) Information Security Operations b) Information System Operations
c) Interoperable Systems Operations d) Internet System Operations
50 ______________is the process of converting information or data into a code,
especially to prevent unauthorized access
a) Interface b) Decryption
c) Encryption d) None of these
51 What is the per transaction limit for Govt./Tax transactions in SARAL Variant?
a) Rs. 50 lacs b) Rs. 1 Cr.
c) Rs. 2 Cr. d) Rs. 5 Cr.
52 What is the per transaction limit for Within SBI and Other Bank Accounts transactions
in VYAPAAR Variant?
53 What is the per transaction limit for Govt./Tax transactions in VYAPAAR Variant?
54 What is the Procedure for Permanent Lockout of RINB/YONO/YONO
LITE/CINB/YONO BUSINESS?
a) >=3 Failed Attempts b) 9 times consecutively
c) 3 lockout days d) Either b or c
55 The version of YONO introduced on 01.07.2023, known as _____, is a payment
solution that allows account holders of any Bank participating in UPI to send money,
receive money using their smartphones
a) Yono for Each Indian b) Yono for Any Indian
c) Yono for Every Indian d) Yono for All Indian
56 The first branch of State Bank of India where Core Banking was started is
a) PBB- Kolkatta b) Hiranandani, Mumbai
c) PBB Chennai d) PBB-Hyderabad
57 The complaint portal for customers on unauthorized transactions is ___

a) https://crcf.sbi b) https://sbicrcf.sbi
c) https://crcf.sbi.co.in d) https://crm.sbi.co.in
58 What is the daily purchase limit for virtual debit card?
a) Rs. 20,000/- b) Rs. 50,000/-
c) Rs. 1,00,000/- d) Rs. 40,000/-
59 What is incorrect in terms of Virtual debit card?
a) To be issued in normal Saving Bank b) All deposit products are eligible
Account( Non-FI) segment
c) Available through Near field d) Device Tokenisation payment through Google
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communication (NFC) enabled Android Pay & Samsung pay)
mobile phones
60 Which of the following is incorrect with regards to NRI account opening through
YONO?
a) Passport and email id is mandatory b) Aadhaar is not mandatory
c) PAN is mandatory d) All are correct
KEY TO EXERCISE - 3
Q 1 2 3 4 5 6 7 8 9 10
ANS b c d c d b d b b c
Q 11 12 13 14 15 16 17 18 19 20
ANS d d d a d d c a a a
Q 21 22 23 24 25 26 27 28 29 30
ANS c b d b d a b b a d
Q 31 32 33 34 35 36 37 38 39 40
ANS d c d d b c d b c a
Q 41 42 43 44 45 46 47 48 49 50
ANS a a a b c a d d a c
Q 51 52 53 54 55 56 57 58 59 60
ANS d c b d c b c b b c
315
EXERCISE - 4
1 What is the full form of YONO?

a) You Need Only One b) You only need once
c) You Only Need Online d) You Only Need One
2 From the following guidelines for Registration and Login of YONO, pick the odd
one out.
a) OS for Android devices-Version 5.0 b) OS for Apple devices – iOS 10.0 and
and above above
c) Internet connection: Cellular(3G/4G) d) The mobile/tablet (Android/Apple)
or Wireless (1 Mbps and above) devices should have OS based locking
mechanism (Passcode, Pattern lock,
Biometric Verification.
3 In YONO, for opening of Digital Savings Account, customer has to voluntarily

provide Aadhaar / VID. The full form of VID is
a) Voice Identification Device b) Virtual Identity Number
c) Vault Identity Number d) None of the above
4 On Yono app and portal, what is the maximum amount for a Tax Saver fixed
deposit?
a) INR 1,00,000 lakhs in a financial year b) INR 1,50,000 lakhs in a financial year
c) INR 150000 and INR 200,000 for d) INR 150000 and INR 500,000 for senior
senior citizens citizens
5 On Yono app and portal, which detail of the My Dream I cannot view?
a) Dream Name b) Dream Period
c) Dream amount d) Dream Image if not uploaded
6 On Yono app and portal, what is tenure applicable to Tax Saver fixed deposit?
a) 3 years to 5 years b) 5 years to 7 years
c) 5 years to 10 years d) More than 10 years
7 YONO Global will be launched in how many countries during FY 2020-21
a) 6 b) 7
c) 5 d) 9
8 In YONO platform, if a customer wants to order food which menu should he/she
choose?
a) Online Market Place b) Relationship Overview
c) Shop & Order d) Financial Super Store
9 The feature in YONO to analyze the expenditure pattern in a particular period is
available for ___________ accounts under ________
a) Transaction; Transactions History b) Deposit; Online Market Place
c) Transaction; Spend Analysis d) Savings Bank Account; Relationship
Overview
10 Customer can login in YONO app by
a) INB credentials b) 6 digit MPIN
11 Which information is captured under “Relationship Overview” in YONO app
a) SBI Life, SBI General Insurance, SBI b) SBI Mutual Funds
Cap Securities
c) SBI Card d) All the above
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12 In YONO a user can view the transaction details there will be maximum…..
transaction or last 6 months of transactions which ever is more?
a) 159 b) 169
c) 179 d) 149
13 “My Dream” feature in YONO platform creates which type of deposit in the
background?
a) Recurring Deposit b) Fixed Deposit
c) Tax Saver Fixed Deposit d) None of the above
14 Where can a user see the PAPL offer in YONO?
a) Post login-home page—notification b) On Shop and Order page as banner
c) Both a & b d) None of the above
15 YONO is integrated with which 3rd party for fulfilment of Bill Payments?
a) Payubiz b) Citrus
c) CCavenue d) Bill desk
16 What is the address for website login of YONO ?
a) https://sbiyono.sbi b) https://www.yonosbi.co.in
c) https://yonosbi.com d) https://www.yono.sbi
17 “SIA”, chat bot in YONO stands for
a) State Bank Intellectual Assistant b) State Bank India Assistant
c) State Bank Intelligent Associates d) State Bank Intelligent Assistant
18 What is the value of 1 reward point in YONO
a) 10 paise b) 50 paise
c) 25 paise d) None of these
19 What is the maximum OD against deposit that can be availed in YONO
a) Rs 5.00 cr b) Rs 3.00 cr
c) Rs 2.00 cr d) Rs 10.00 cr
20 What is the minimum OD against deposit that can be availed in YONO
a) Rs 25000 b) Rs 10000
c) Rs 50000 d) Rs 100000
21 What is YONO cash?
a) It is the facility in YONO for transfer b) It is facility in YONO to make a request
of fund to any account of cash withdrawal without using Debit
Card
c) It is the facility in YONO for d) None of the following
withdrawal of Cash using Debit Card
22 The Transaction Number for YONO Cash will have a validity of maximum
________minutes
a) 120 b) 180
c) 240 d) 60
23 Under YONO Cash@POS, Transaction limit per transaction per account is
Rs._____________ with a maximum ceiling upto Rs. ________ per transactions
a) Rs. 500 & Rs.5000 b) Rs. 500 & Rs.5000
c) Rs. 500 & Rs.2000 d) Rs. 100 & Rs.2000
24 What is the minimum amount that can be withdrawn using YONO cash facility
a) Rs. 500 b) Rs. 1000
c) Rs. 100 d) Rs. 1500
25 What is the maximum amount per transaction that can be withdrawn using
YONO cash facility
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a) Rs. 5000 b) Rs. 10000
c) Rs. 20000 d) Rs. 15000
26 Under which option of Smart Cheque Deposit of YONO, can the customer enquire the
status of the cheque entered by him in the YONO app?
a) Transaction Enquiry b) Cheque Enquiry
c) View Status d) None of the above
27 Whether PDCs are accepted in CDK?
a) Yes b) No
c) Can’t Say d) None of these
28 How many cheques a customer can submit at once?
a) 5 b) 1
c) 10 d) 2
29 Customer has entered the cheque details in YONO app under smart CDK option
and generated reference number. What is the validity of this reference number
for depositing cheque in CDK?
30 Which of the following option a checker has to choose, if there is error data entry
by the maker while updating KYC through YONO branch interface NFS module?
a) Deny b) Reject
c) Send back to Maker d) Return to Maker
31 In KYC/Profile Update of YONO, which of the following Profile fields is not
mandatory.
a) Mobile Number b) E-Mail
c) BSR Organisation Code d) PAN / Form 60
32 Who are eligible to open accounts through YONO?
a) Individual, Literate, Resident of India b) Individual resident with any age
and above 18 years of age
c) Individual resident with below 18 d) None of these
years of age
33 What is DAC?
a) Document Archived Centre b) Documentation Archived Centre
c) Document Archival Centre d) None of the above
34 In YONO Krishi, which of the following customers is NOT eligible to avail Agri.
Gold Loan
a) Agri. Land owners b) Illiterate customers
c) Existing KCC borrowers d) All of the above are eligible
35 What are the important features in Yono Krishi
a) Mandi b) Mitra
c) Agri gold loan d) All of the above
36 Under YONO KRISHI, Mandi is for enabling farmers for ________
a) Purchase of implements, pump-sets, b) It is weather forecast and other helping
etc. needs for farmers
c) Farmer can arrange for insuring their d) None of the above
crop
37 Under Mitra in YONO Krishi, a farmer can ____
a) Purchase implements, seeds b) Get Agri Gold Loan data
c) Weather forecast and other helpful d) None of the above
resources for agriculture
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38 What is the name of the functionality developed by the Bank which enable
customers withdraw cash from selected ATMs/Recyclers without using their
debit card?
a) Contactless Card b) YONO Cash
c) EMV enabled Card d) SBI Fastag
39 The eligible customers under PAPL scheme have to do the following to avail the
loan:
a) Approach their Home Branch and b) Approach any branch and execute the
execute the documents documents
c) By clicking the required responses, d) All the above are correct options
the loan account is instantaneously
created without any paperwork
40 The eligible customers under PAPL are intimated through
a) SMS b) e-mail
c) Push intimation through YONO app d) All the above are correct options
41 How the eligibility of the customers is assessed under YONO PAPL?
a) Branch staff scrutinise the b) Staff have to apply online and CPCs will
income documents and assess the eligibility
recommend
c) The eligible customers are pre- d) None of the above options is correct
selected by analytic engine
42 If any customer is eligible for two loan products i.e. Xpress Credit and PAPL what
will be the process?
a) Customer can avail both the loans b) Customer can avail only one loan, which
simultaneously loan limit is lower
c) Customer can avail only one loan, d) Both the loans will be cancelled
which loan limit is higher
43 The loan account under YONO PAXC will be opened automatically by the system
under which branch?
a) Customer’s Home Branch where the b) Any branch as per customer’s choice
CIF is maintained
c) Branch in which the salary/income d) None of the options is correct
account is maintained
44 How Long the offer of PAXC is available for the customer?
a) Customer has to avail within 15 days b) Customer has to avail PAXC within the
from the notification calendar quarter in which the offer is
made
c) Customer has to avail within 30 days d) Customer has to avail PAXC with the
following calendar quarter in which the
offer is made
45 On Yono App/Portal, what is the maximum amount offered under PAPL for Pre-
Approved Personal Loan
a) Rs.25000/- b) Rs.100000/-
c) Rs.50000/- d) Rs.200000/-
46 Insta Pension Top Up Loan is a new product under Pension Loan in YONO
platform. Which among the following is incorrect?
a) Minimum existing Pension Loan Limit b) Satisfactory repayment record for the
of Rs 1 lac last 1 year
c) Minimum residual maturity of d) Maximum loan limit is 2,50,000/-
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Pension Loan - 1 year
47 Validity of Insta Pension Top Up Loan is
a) Within calendar quarter from the offer b) Within one month from the offer
c) After the calendar quarter from the d) Within two months from the offer.
offer
48 What is CDIF while opening of account through YONO?
a) Customer Document b) Customer Data Information Format
Information Format
c) Customer Data Input Form d) Customer Document Information File
49 Preapproved Xpress credit through YONO is repayable within …..months

a) 48 b) 60
c) 36 d) 72
50 What is the maximum sum assured for SBI General personal Accident Insurance
(PAI)?
51 In Digital account opening journey through OVD at the branch, the physical
documents and forms are required to be sent to...........
a) Liabilities Central Processing Centre b) Documents Archival Centre (DAC)
(LCPC)
c) Retained at the branch. d) Project Lotus Department
52 What is the limit for maximum loan amount under Pre- Approved Xpress Credit
(PAXC) through YONO for Diamond and Platinum category DSP customers and
Platinum govt salary package customers?
a) Rs. 2,00,000/- b) Rs. 5,00,000/-
c) Rs. 15,00,000/- d) Rs. 1,00,000/-
53 What is the limit for maximum loan amount under Xpress Credit Insta Top up
through YONO?
a) Rs. 2,00,000/- b) Rs. 3,00,000/-
c) Rs. 1,00,000/- d) Rs. 5,00,000/-
54 Under YONO Krishi, Agri Gold Loan and KCC review is available in _________
a) Self Assist Mode b) Customer Portal

c) Branch Portal d) All the above
55 With a view to encourage/ facilitate Agri lending through partnership model with
Corporates in hassle free manner, a new pre-approved loan ___________ has
been launched
a) SAFAL b) FASAL
c) ATL d) None of the above
56 Expand SAFAL Which is available in YONO Krishi

a) Safe and Free Agri Loan b) Simple and Fast Agri Loan
c) Secure and Fast Agri Loan d) None of the above
57 The purpose of SAFAL is to meet the ____________ needs of the farmers.
a) Dairy farming b) Goat rearing

c) Sheep rearing d) Poultry
58 What is the maximum loan amount sanctioned under YONO KRISHI SAFAL
DAIRY
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a) Rs. 2,00,000/- b) Rs. 1,00,000/-
c) Rs. 5,00,000/- d) Rs. 3,00,000/-
59 Presently who are eligible to open NPS (National Pension Scheme) account on
YONO portal?
a) Existing RI Customers b) Existing NRI customers
c) New to Bank customers d) CSP account holders
60 NPS account opening is YONO is available in which tab?
a) My Deposits b) My Investments
c) My Dreams d) Pre Login page
KEY TO EXERCISE – 4
Q 1 2 3 4 5 6 7 8 9 10
ANS d b b b d c d c c c
Q 11 12 13 14 15 16 17 18 19 20
ANS d d a c d a d c a a
Q 21 22 23 24 25 26 27 28 29 30
ANS b c d a c c b c a d
Q 31 32 33 34 35 36 37 38 39 40
ANS b a c d d a c b c d
Q 41 42 43 44 45 46 47 48 49 50
ANS c c c b d d b c d C
Q 51 52 53 54 55 56 57 58 59 60
ANS b c b d a b a d a b
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EXERCISE - 5
1 CRM stands for
a) Customer Response Management b) Customer Request Management
c) Customer Relationship Management d) Customer Review Management
2 Who will do the role mapping for users in branch in CRM?
a) CRM nodal officer b) Field Officer
c) Admin at LHO d) Branch Manager
3 Which of the following is not a benefit of CRM?
a) Attract more customers and helps to b) Improved internal communication
retain the existing customers
c) Improved customer satisfaction. d) Increased complaint resolution time
4 In CRM, for Asset products which of the following roles available?
a) Branch Manager (BM) b) Relationship Manager(RM)
c) Lead Advances (LA) d) All of these
5 Which document related to the vehicle is required to apply for Fataag?
a) Insurance copy b) Pollution certificate
c) Registration certificate d) Vehicle Invoice
6 RINB facility cannot be given on accounts with which mode of operation?
a) Either or Survivor b) Single operation
c) Jointly operated d) Anyone or Survivor
7 An individual customer can register online for Retail Internet Banking,
provided he/she has a valid ____
a) SBI Credit card b) ATM Card on the account
c) PAN Card d) Customer cannot apply for RINB
8 In Customer Relationship Management (CRM) portal, Customer 360 / Retail 360
a) a complete view of customers by b) List of customers having Liability /
aggregating data from various touch Asset / Mutual Fund and Insurance
points and displaying it in a single products from the Bank.
view.
c) Consolidated list of customers whose d) Information regarding customer credit
leads are in the New Leads Stage worthiness
9 In CRM, the module which has comprehensive view of complaints and service
requests raised by SBI staff or received from other channels is
a) Corporate 360 b) Retail 360
c) Services 360 d) Leads 360
10 In CRM, the module which has analysis in terms of customer information,
product and journey to offer potential business is
a) Corporate 360 b) Retail 360
c) Services 360 d) Leads 360
11 If a Customer wants to know about his/her eligibility for PAPL, what is the
format to be used to send the message?
a) SMS “PAPL XXXX” to 567676 where b) SMS “PAPL XXXX” to 567676 where
XXXX is last four digits of his debit XXXX is last four digits of his SB
card to know his eligibility account number to know his eligibility.
c) SMS “PAPL XXXX” to 567676 where d) Any of the above
XXXX is last four digits of his CIF
number to know his eligibility
12 What is the minimum loan amount under Pre-approved pension Loan
(PAPNL)?
a) 10000 b) 15000
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c) 25000 d) 50000
13 What is the maximum age before which the pre-approved pension loan
(PAPNL) has to be completely repaid?
14 What is the maximum age up to which customer is eligible for Pre-approved
pension loan (PAPNL)?
a) Age should be less than 65 years b) Age should be less than 76 years
c) Age should be less than 6 years d) Age should be less than 72 years
15 What is the maximum period of loan for which pre-approved pension loan is
sanctioned?
16 Which of the following cheques are accepted in CDK?
a) Stale Cheque b) PDCs
c) CTS Compliant Cheques d) Any of the above
17 Which of the following is dedicated email support on YONO?
a) [email protected] b) [email protected]
c) [email protected] d) [email protected]
18 Using which of the following options in YONO, a customer can track the status
of a compliant?
a) Accounts b) YONO Pay
c) Service request d) Get in touch
19 Which of the following services is not offered under YONO Cash?
a) Card less payments at POS b) E commerce payment
c) Cash @ POS d) Cash withdrawal at CSP
20 CDIF, KYC documents, customer photo and signature are stored in the form of
secure PDF files in _________?
a) CRM b) CBS
c) DAC d) DMS
21 Expand DMS
a) Document Management System b) Document Management Service
c) Dispute Management System d) Dispute Management Service
22 What should be the account mandate for opening digital SB through YONO?
a) Either or Survivor b) Former or Survivor
c) Single d) Any of the above
23 Which of the following document customer need to upload while availing PAPL
in YONO?
a) KYC documents b) Income proof
c) Photograph d) No need to upload any document.
24 What should be the minimum CIBIL score required for non-CSP customer to
be eligible for PAPL?
a) 700 b) 750
c) 650 d) 800
25 What is the validity period for the reference number generated by the customer under
YONO KRISHI for availing Agri Gold Loan?
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26 Customer has done some data entry in YONO Krishi for Agri Gold Loan which is
incomplete. For how many days this incomplete application will be available to the
customer to resume the further process?
27 What is the maximum loan limit for agri gold loan in YONO Krishi?
a) Rs. 25,00,000 b) Rs. 10,00,000
c) Rs. 20,00,000 d) Rs. 2,00,000
28 Which of the following feature in YONO KRISHI will help the farmer to do the
basic banking services like bill payment, fun transfer etc?
a) Mandi b) Khata
c) Mitra d) Farm
29 Which of the following non-financial services are not available in YONO Lite
a) Transfer of SB account to another b) Virtual card generation
branch
c) For 15 G/ 15H submission d) Registration of online nomination
30 Name of the option in YONO lite using which customer can view the transaction
enquiry in offline mode
a) Mpassbook b) Offline enquiry
c) Mstatement d) mtransfer
31 What is the maximum per transaction limit under Quick transfer option in
YONO Lite?
a) 1 lakh b) 20000
c) 50000 d) 25000
32 Which of the following payment option is not available in YONO Lite?
a) Cash withdrawal using YONO Cash b) Quick Transfer without adding
beneficiary
c) UPI payment using VPA d) TEZ mode
33 If the user selects NO in enable high security option for fund transfer in INB then…?
a) No OTP (high security alert) is b) No OTP (high security alert) is
required for any amount of intra and required for transaction up to 10,000
interbank fund transfer cumulative in a day
c) No OTP (high security alert) is d) No OTP (high security alert) is
required for transaction up to 20,000 required for transaction up to 30,000
cumulative in a day cumulative in a day
34 Which of the following options is not available under ATM Card services in
INB?
a) Request new ATM / Debit b) Manage ATM / Debit card
card
c) Block ATM / Debit Card d) Link Debit card to another account.
35 Name the option in INB under ATM card services through which customer can
apply for personalized image-based ATM card?
a) No such option b) My card
c) Debit Card d) Special card
36 Which of the following service is not available to customer under ATM card
service in INB?
a) Reduce daily limit of the card for b) Enable/ Disable the card type of
ATM/POS/CNP transaction within ATM/POS/CNP
the permitted limits.
324
c) increase daily limit of the card for d) Enable /Disable international usage.
ATM/POS/CNP transaction above
the permitted limits
37 The Technology that is used in SBI FASTag to read the Tag is
a) QUORUM b) NETC
c) RFID d) NPCI
38 One of your customers has received the ATM Card he applied for. Now he
wants to know whether he can get the PIN for the same through RINB?
a) Yes, He can generate the PIN Online b) No. There is no provision to generate
through RINB using just the login ATM PIN Online
Password
c) He can generate the ATM PIN d) None of the above
through RINB using either OTP or
Profile Password
39 SBIMOPS renamed as
a) SBIeFast b) SBI epay fast

c) SBIepay Lite d) SBI unipay lite
40 What are the following feature is not available in Tiny Special account
a) INB with transaction rights b) Cheque book facility

c) Forex Inward remittances d) ATM facility
41 In Multi user Multi Admin variant of CINB(Vistaar) who creates the various
corporate users (Maker, Authoriser, Uploader etc.,)
a) Regulator b) Administrator
c) Approver d) Auditor
42 Registration for Khata Plus, Vyapaar, Vistaar facility is done through
a) Core Banking b) Bankmaster
c) Yono Business d) There is no need to register for these
products
43 What is the requirement to install BHIM SBI PAY App
a) It can be installed on any smart b) Minimum Operating System
phone requirement is case of Android phone
is version 5.0 and above
c) Minimum Operating System d) Minimum Operating System
requirement is case of Android phone requirement is case of Android phone
is version 4.2 and above is version 6.0 and above
44 What is the mechanism available to the customer for disputed transactions?

a) Customer can raise the dispute b) Customer can contact the toll free
through the App number 1800112211 for lodging the
complaint
c) Customer can lodge the complaint d) Any of the above
through email on
[email protected]
45 Which of the following payment options is not available in BHIM SBI pay?
a) QR Code b) MMID
c) Account Number and IFSC d) VPA
46 VPA stands for
a) Virtual Portal Application b) Value payment App
c) Virtual Payment Address d) Virtual Payment Application
47 BHIM SBI pay has 1-click 2-factor authentication which are:
325
a) App PIN & Mobile pin b) App PIN & UPI pin
c) App PIN & Transaction pin d) One-Factor Authentication only
48 Which is not the pre-requisites for BHIM SBI Pay in the following options?
a) Mobile - Android 4.2 and b) Mobile number present in the android
above handset should be registered in Bank
account
c) Valid AADHAAR No. d) Details of debit card linked to the
account required for UPI PIN set up
49 Features of Fastag are
a) Multi layered Tag b) Contains Antenna
c) Contains Chip d) All options are correct
50 What is SBI FASTag?
a) An initiative to digitize toll b) Initiative to collect Toll Tax
transactions at toll plazas electronically
c) An effort to curtail Time for payment d) All options are correct.
of Toll Tax at Plaza
51 Full KYC FASTag Account, at any given point of time, cannot have more than
______in their FASTag (prepaid) account.
a) Rs.10000/- b) Rs.20000/-
c) Rs.100000/- d) Rs.50000/-
52 What does QR stand for in Bharat QR?
a) Quick Receipt b) Quick Response
c) Quartely Receipt d) Quick Resolution
53 In Bharat QR, the types of QR codes available are
a) Static QR Code b) Dynamic QR Code
c) a) & b) d) SBI QR Code
54 Which of the following is not true as a pre-requisites by merchant for Bharat
QR?
a) Smart mobile phone b) Account with SBI
c) QR code scanner d) Data connection
55 Which of the following information is not stored in static QR code?
a) Merchant ID b) Merchant Name
c) Terminal ID d) Amount of Transaction
56 Which of the following is not the benefit of Bharat QR to the bank?

a) CASA balance b) It has no CAPEX and less OPEX
c) Monthly rental d) Merchant discount rate
57 Which of the following is not true about the benefits of Bharat QR to merchant?
a) Lower MDR rates compared to POS b) No commitment charges
c) No monthly service fee/ Rental d) No MDR

58 For on-boarding a merchant desiring to avail Bharat QR code facility to
collect payments, branch has to ……..
a) Advise the merchant to download b) The process of on-boarding a
and install bharat QR App on his merchant for Bharat QR is same as
mobile and do the self registration POS
c) Advise the customer to contact MAB d) Can be enabled through INB branch
department at LHO interface
59 BHIM stands for
a) Bharat Interface for Money b) Bharat Inter-transfer for money
c) Bharat Interchange for Money d) None of these
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60 For transacting through BHIM Aadhaar Pay, it is _______
a) Only essential that the Merchant has b) Only essential that the Customer has
an Aadhaar linked account an Aadhaar linked account
c) Essential that both Merchant and d) Essential that the Customer
Customer have an Aadhaar linked downloads the App and makes
account. payment using the transact option
61 “BHIM-Aadhaar-SBI-2 app is for
a) Individual b) Merchant
c) Both d) None of these
62 RINB facility cannot be given on accounts with which mode of operation?
a) Either or Survivor b) Jointly Operated
c) Single Operation d) Any one or Survivor
63 An individual customer can register online for Retail Internet Banking, provided
he/she has a valid ______
a) SBI Credit Card b) ATM card on the account
c) PAN card d) Customer cannot apply online for RINB
64 Please identify the single user, transaction product of CINB from the following
a) Vistaar b) GINB
c) Saral d) RINB
65 In CINB Vistaar, who creates the various corporate users (Maker, Authoriser,
Uploader etc.)
a) Regulator b) Administrator
c) Approver d) Auditor
66 Role of Regulator is mandatory in which of the following
a) Saral b) Vyapaar
c) Khata d) Vistaar
67 Registration for Khata Plus, Vyapaar, Vistaar facility is done through
a) Core Banking b) Bankmaster
c) Branch INB interface d) There is no need to register for these
products
68 What is the maximum transaction limit per day on GOOGLE PAY?
a) Rs.10000/- b) Rs.100000/-
c) No such limit d) Rs.50000/-
69 YONO LITE SBI was earlier called as
a) SBI Appkart b) State Bank Anywhere
c) YONO Cash d) SBI Fastag
70 Number of variants of CINB are ?
a) 5 b) 4
c) 3 d) 6
71 Which of the following CINB facility can be enabled through CBS ?
a) Khata Plus b) Khata
c) Vyapaar d) Vistaar
72 Which of CINB variant is compatible for Proprietary firms who need only
enquiry rights?
a) Saral b) Khata Plus
c) Khata d) Vyapaar
73 Simplified single user product of CINB which provides a number of services to
manage the accounts online with transaction rights is
a) Khata b) Saral
c) GINB d) Vyapar
327
74 Which facility is not available in SBI Samadhan Application?
a) A/C Statement b) Interest Certificate
c) Pension slip d) A/C opening
75 SBI Quick is available for______ accounts
a) SB b) CA
c) OD/CC d) All the above
76 Maximum transaction limit for non-tax transactions through Vistaar variant under
CINB is _________
a) Rs. 1000 Crores per transaction b) Rs. 2000 Crores per transaction
c) Rs. 5000 Crores per transaction d) Rs. 500 Crores per transaction
77 Maximum transaction limit for Tax transactions through Vistaar variant under CINB
is _________
a) Rs. 10,000 crores per transaction b) Rs. 1,000 crores per transaction
c) Rs. 2,000 crores per transaction d) Rs. 5,000 crores per transaction
78 What is the limit for maximum number of transactions per day either tax or non-tax
transactions through Vistaar variant under CINB is ________
a) 10 b) 8
c) 5 d) Any number of transactions
79 What is the limit for maximum loan amount under Pre- Approved Pension Loan
(PAPNL) through YONO
a) Rs. 2,00,000/- b) Rs. 3,00,000/-
c) Rs. 5,00,000/- d) Rs. 2,50,000/-
80 Fraudster sends the email to customers to capture sensitive information like Card
Number, CVV, PIN etc. This technique is commonly known as
a) Vishing b) Smishing
c) Phishing d) Skimming
81 In the sense of ATM frauds / online frauds, what is the meaning of Cloning
a) Capturing the data from Debit b) Creation of Duplicate or Identical card
Card/Credit Cards with the information obtained through
various techniques like Skimming etc.
c) Swapping of the ATM Card in the ATM d) Data capturing through PIN hole
Room cameras
82 If the amount was debited from customer’s account, on account of CARD
SWAPPING, what is the name of the fraud?
a) Frauds on Customers b) Frauds on Banks
c) Frauds by Insiders d) None of the above
83 ATM Jackpot means
a) Withdrawing the amount from customer b) Withdrawing the amount from Bank
account by stealing his / her credentials ATM BGL accounts by hacking the CBS
c) Withdrawing the amount from ATM by d) ATM Jackpot is a malware, which has
stealing ATM vault passwords been developed to enable the ATM
machine to dispense cash continuously
through the cash dispenser
84 Sometimes, the fraudsters send messages through SMS to the mobile numbers of
bank customers informing that they have won a prize and provide the internet link
or mobile number to claim the money. This type frauds are known as
a) Smishing b) Vishing
c) Skimming d) Social Engineering
85 If fraudster is able to withdraw money from customers account by hacking the card
data base of customers from Banks server, then who has to bear the loss
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a) Customers b) Bank
c) RBI d) Government
86 Among the following frauds, which is related to Banks only?
a) Swapping of ATM card at ATM lobby b) Stealing of customer PIN through
shoulder surfing
c) Sealing of ATM Vault passwords d) Sharing of OTP by customer
87 What is a Blockchain?
a) A distributed ledger on peer-to-peer b) A type of cryptocurrency
network
c) A centralized ledger d) An exchange
88 Expand VAN?
a) Virtual Account and Name b) Virtual Account Number
c) Visual Account Number d) None of the above
89 What is a Malware?
a) A program which is not compatible to b) Personal software which is not related
the device to the work
c) A Malicious Program which can impact d) Data which has restricted access
the confidentiality, integrity, and
availability of computer resources
90 What is phishing?
a) Shoulder surfing to steal the credentials b) A social engineering technique for
stealing the personal credentials
c) Requesting the system administrator to d) Connecting a device on the back side
grant permission of CPU which logs the keystrokes
91 What is Spear Phishing?
a) Phishing mail targeted to different b) A tool used to detect technical issues in
people who are not related a system
professionally
c) A phishing mail targeted to employees d) A type of Denial-of-Service Attacks
of an organization
92 What is a Software Key logger?
a) A malicious program which encrypts b) A malicious program which counts the
the data total number of characters and words a
person type c
c) A malicious program which grabs the d) A software used to block offensive word
keystrokes and identifies the mouse
activity
93 Virtual Account Number is a
a) Series of Numeric code b) Alpha Numeric Code
c) Bank account number d) None of the above
94 Per Day limit for Intra-Bank & Inter-Bank Fund Transfer in CINB Saral and SB
Anywhere Corporate Saral is
a) Consolidated Limit of Rs.25 Lacs per b) Consolidated Limit of Rs.10 Lacs per
day day
c) Consolidated Limit of Rs.15 Lacs per d) Consolidated Limit of Rs.30 Lacs per
day day
95 As an enhanced security feature and for regulatory compliance, the registration
process for YONO mobile application is modified as
a) Device Binding b) Device and SIM Binding
c) No Binding of SIM and Device d) None of the above
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96 SBI Payment Services Pvt. Ltd. (SBIPSPL), the subsidiary of SBI, have launched a
new mobile based Point of Sales (PoS) solution. The name of the solution is
a) YONO SBI Merchant Application b) Merchant POS Application
c) BHIM Merchant Application d) CRM Merchant Application
97 In YONO SBI Merchant Application, the merchant can accept Contactless
transactions(Tap to Pay) up to Rs.____
a) 1000/- b) 2000/-
c) 10000/- d) 5000/-
98 YONO SBI Merchant App can be downloaded from
a) CINB Pre login page b) Google Play store
c) Branch Assist d) SBIPSPL Assist
99 Regarding de-activation of INB users in Branch interface- INB, which of the
following is false?
a) INB checker can deactivate any maker b) INB checker can deactivate himself
/ checker
c) Deactivation by INB checker requires d) Deactivation should be done when an
authorisation employee is transferred
100 The re-issue login password request of an INB checker is approved by
a) Another INB Checker b) Branch Manager
c) Circle Admin d) Any of the above
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KEY TO EXERCISE -5
Q 1 2 3 4 5 6 7 8 9 10
ANS c d d d c c b a c d
Q 11 12 13 14 15 16 17 18 19 20
ANS b c a b d c a d b d
Q 21 22 23 24 25 26 27 28 29 30
ANS a c d b d b a b b a
Q 31 32 33 34 35 36 37 38 39 40
ANS c d b d b c c c d b
Q 41 42 43 44 45 46 47 48 49 50
ANS b c c d b c b c d d
Q 51 52 53 54 55 56 57 58 59 60
ANS c b c c d c d b a c
Q 61 62 63 64 65 66 67 68 69 70
ANS b b b c b d c b b d
Q 71 72 73 74 75 76 77 78 79 80
ANS b c b d d b a d c c
Q 81 82 83 84 85 86 87 88 89 90
ANS b a d a b c a b c b
Q 91 92 93 94 95 96 97 98 99 100
ANS c c b b b a d b c c
Back to Index page
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Pre-sanction, Post-sanction process, CICs
PRE AND POST SANCTION
1 In which of the following cases 2 TIRs are not required?
a) Properties acquired through Gift b) Properties sold by Power of
deed. attorney holder.
c) Home Loan more than 5 Cr and d) Second sale and Home Loan is
RERA registration is available more than Rs.50 lacs
2 In which case two valuation reports are required?
a) Where the value of property is Rs.50 b) Where the Home Loan is Rs.50
lacs & above. lacs & above.
c) Where the Home Loan is Rs.1 Cr d) All the above
and above.
3 In which case 2 CIC report is required for Home Loan?
a) Home Loan limit above Rs.1 Cr. b) Home Loan limit above Rs.50 lacs.
c) Home Loan limit above Rs.20 lacs. d) Home Loan limit above Rs.10 lacs
4 Which of the following is a Credit Information Company?
a) Credit Information Bureau (India) b) Equifax Credit Information Services
Limited Pvt. Ltd
c) Experian Credit Information d) All the above.
Company of India Ltd
5 CIBIL shows repayment history in borrower’s account for …… .
6 In case of Home Loan amount is Rs.1 cr & above, a search for ….. years to be
obtained by Bank’s empaneled advocate.
c) 13 years d) 13 years, however in case of any
ambiguity, 30 years
7 Coordination desk is a part of ………….
a) HLST b) RBO
c) Administrative Office d) RACPC
8 Where the legal / valuation / inspection report is required from another
center, the TAT for valuation report is ……..
a) 6 days b) 5 days
c) 4 days d) 2 days
9 Discretionary Powers to approve deviation for any default/write-off appearing
in CIBIL in respect of non-Credit Card dues above Rs. 50,000/= (Applicable only
for Housing Loan) is
a) CGM (Circle) b) GM (Network)
c) DGM (B&O) d) No discretion available, proposal to
be rejected
10 Proper identification of the property can be done during the pre-sanction
survey with the help of
a) Borrower b) Valuer
c) Boundaries d) Neighbour
11 Before execution of documents the signatures of the borrowers need to be
tallied with that on the -------------
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a) PAN Card b) Aadhar Card
c) Driving License d) Application form
12 The minimum and maximum members in Public limited company
a) Min-7 and maximum-500 b) Min-7 and maximum -200
c) Min-7 and maximum -unlimited d) None of the above
13 At the time of sanction of credit facilities, Valuation report should not be older than
_____ months.
a) 3 b) 6
c) 9 d) 12
14 A letter, should be sent to all the borrowers/guarantors, who had mortgaged their
properties with the Bank, stating that they have to collect the original title deeds within
...........of full and final payment of Bank’s dues failing which applicable Safe Custody
Charges would be levied
15 What is the guidance rate for RAROC (excluding PSL) as per our Bank?
a) 15% b) 10%
c) 20% d) 25%
16 As a part of sample check, the Branch /CPC should verify ……..% of the
cases handled during the period by the outside agencies, as a cross check
of the quality of their services of address verification
a) 5 % b) 2 %
c) 3% d) 1 %
17 In case RERA registration is not available, 2 Title Investigation reports are
required for home loans where loan amount
a) Rs. 1 cr and above b) Rs. 5 cr and above
c) Rs. 50 lacs and above d) Rs. 2 cr and above
18 In case of divergence of opinion of two advocates in TIR
a) Opinion of law officer required b) Both report to be sent to senior
lawyer for his opinion
c) Opinion given by senior advocate will d) Again entrusted to two advocate
prevail
19 In case of Education Loans in the joint names of student and guardian,
whose PAN Card is required to be obtained
a) Both student and guardian b) Pan card is not required
c) PAN card of guardian d) Pan card of student
20 Norms regarding obtention of certified copies of Title Deeds directly from
the office of the Sub-registrar is waived for Home Loans ______
a) Up to Rs. 30 lacs b) In all cases
c) Up to Rs. 50 lacs d) Up to Rs. 1 cr
21 If our exposure is collaterally secured by the following type(s) of property, a
satisfactory Title Investigation Report (TIR) from two different empaneled
advocates should be obtained, irrespective of amount in all segments
a) Properties sold by POA to our b) Properties offered by Third party
borrower/guarantor guarantors
c) Properties acquired by gift deed d) All the above
22 For Home Loans , certified copies of title deeds including minimum ...........
previous chain title documents (falling within the search period) and/or all
chain title documents executed within ........ period from the date of the
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current title deed directly from the Sub-registrar’s office should be obtained
a) 2,3 years b) 3,30 years
c) 3,13 years d) 2,13 years
23 While arriving at the Net Monthly Income of the customer in case of Housing
loan, other income, regular income from all sources including performance/
production linked incentives; bonus, overtime etc. can be considered, in
whole or in part, on the basis of
a) The average of the last two years, b) The average of the last 6 months,
to arrive at the total eligible loan to arrive at the total eligible loan
amount amount
c) The average of the last three years, d) The average of the last two years,
to arrive at the total eligible loan provided the customer is an
amount employee of a reputed PSU/MNC,
to arrive at the total eligible loan
amount
24 Proper identification of the property can be done during the pre-sanction
survey by _____
a) Physical boundaries in the map/TIR b) Enquiry from the Neighbours
c) Accompanying the Borrower d) Accompanying the Valuer
25 The officer entrusted with the job of Pre-Sanction Survey (PSS) will identify
the borrower _______
a) By showing his/ her photograph to b) On the basis of proof of
the neighbours and making discreet identification submitted by the
enquiries about his/ her credentials borrower along with the loan
application
c) By directly visiting the work place for d) Any of the above
identification
26 Legal Report for a property in the same centre is to be obtained within a TAT
of __________ days
a) 4 b) 2
c) 5 d) 3
27 Valuation Report for a property situated in the same centre is to be
obtained within a TAT of __________ days
a) 4 b) 1
c) 3 d) 2
28 Under no circumstances, the Advocate should submit a TIR certifying clear
and marketable title of the property ______
a) With conditions or stipulations to be There is no such restriction
complied
c) Without payment of stipulated fees Without his membership number
29 _______ is not considered while calculating the net monthly income
a) CCA b) Special allowance
c) Monthly Transportation Expenses d) LTC being paid on the basis of
certificate
30 For a Central government salary package customer, which Branch is
authorised to process Xpress credit proposal
a) Branch near place of posting or b) Only branch where salary account
where salary account is maintained is maintained
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c) Branch near residence d) any Branch
31 CERSAI stands for __________
a) Central Registrar of Securitization b) Central Registry of Securities,
Assets Reconstruction and Security
Interest of India
c) Central Registration of Securities d) Central Registry of Securitization,
Assets and Interest Asset Reconstruction and Security
interest of India
32 Which sections of NI Act 1881 deals with initiating of action in case of
bouncing of 1st PDC?
a) 138 & 139 b) 140
c) 146 d) All of the above
33 Failed SI Report is generated in CBS system at which frequency
a) Daily b) Weekly
c) Fortnightly d) Monthly
34 In case of Auto Loan, a copy of insurance policy for 1st year to be obtained
and retained with loan documents and for subsequent years, copy of
insurance policy may not be obtained. This relaxation is not applicable for
loans of Rs.______
a) 20 lakh and above b) 25 lakh and above
c) 30 lakh and above d) 35 lakh and above
35 In case of independent house under construction, property insurance may
be taken at the time of
a) last disbursement b) first disbursement
c) Possession d) Getting O.C.
36 An un-stamped or under stamped document will be inadmissible as evidence
as per section
a) 35 of RBI Act, 1934 b) 35 of Indian Contract Act, 1872
c) 35 of Indian Registration Act d) 35 of Indian Stamp Act, 1899
37 If date of document appears to be prior to the date of stamp duty, such
document would be treated as invalid on the grounds that it has not
been_____
a) Executed b) Properly executed document
c) Properly dated d) Duly stamped
38 Document should not bear ____date(s)
a) double date b) impossible date
c) back dates d) All the above
39 The minimum designated partners and maximum partners in LLP
a) Min 2 and Max-20 b) Min-2 and Max-200
c) Min-2 and Max-10 d) Min 2 and Maximum- no ceiling
40 In case of imported cars with full advance payment conditions, which is the
best method of disbursement to protect interest of the Bank and Borrower?
a) Direct payment to foreign supplier b) Direct payment to local dealer
c) By bank Guarantee d) By Letter of Credit
41 In case of Max gain home loan account at what stage cheque book / INB facility
to be given to the borrower?
a) On sanction of the limit b) On execution of security documents
c) On disbursement of first installment d) On full disbursement
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42 Which classification of loan account serves the purpose of Early Warning
Signals?
a) RG classification b) Probable NPA Classification
c) IRAC Classification d) SMA classification
43 How many copies of ECS mandate for repayment of EMI to be obtained from
the borrower?
a) 1 b) 3
c) 5 d) 7
44 Which important documents are required to be obtained during Education
period from the student?
a) Bonafide Certificate b) Bonafide certificate & Mark sheet

c) Both of the above d) Bonafide certificate and mark sheet
of previous examination & receipt of
latest fees paid to the Institution
45 Randomly selected ____% of the Home Loan accounts (IRAC: Standard)
should be verified by Inspection every month?
a) 1 b) 3
c) 5 d) 7
46 In case of Xpress Credit Loan Account, a letter needs to be sent to
_______immediately after sanction of the loan?
a) Employer b) Borrower
c) Controlling Authority d) DDO
47 To facilitate tracking with Credit Information Companies, the details of which
document are required to be fed in CBS?
a) Aadhar Number b) PAN Card details
c) Email ID of the borrower d) C-KYC details of the borrower
48 When a cheque is dishonored the branch / CPC has to give a notice in writing
to the drawer within ___days of the receipt of information by it from the bank
regarding return of cheque.
a) 10 b) 15
b) 20 d) 30
49 Which is first and most important action on receipt of PDCs
a) Entries in PDC Register b) Entries in PDC Register &
Authentication of the same
b) Putting round seal of the Branch / d) Putting the crossing seal of the
CPC Branch /CPC
50 A shell company is an entity that has _____
a) No active business b) usually exists only as a vehicle for
another company
c) Both 1 & 2 above d) None of the above
For a loan proposal of Rs.11 lacs, What are Bank's instructions in respect of
51 SBIDBR search?
a) Optional b) Mandatory
c) Not Mandatory d) None of the above
52 How many Credit Information reports is/are required for processing secured
loans limit (in MSME Sector) of Rs. 26 lacs?
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a) Note required b) 2
c) 1 d) 3
53 CMR report is in addition Credit Information Companies (CICs) report
processing secured loans limit (MSME Sector) > Rs. 10 lacs ?
a) False b) True
c) Cannot say d) As per discretion of sanctioning
authority
54 R&DBG will normally handle SME proposals for exposures upto Rs. -----
a) 10 crores b) 30 crores
c) 50 crores d) 100 crores
55 Opinion Reports on Borrowers and Guarantors should be updated at
________ interval
a) Once in 6 months b) Annually
c) Once in two years d) Once in three years
56 For Secured MSME Advances, what is the cut off limit for obtaining 2 CIC
reports
a) Limit > Rs.10 lac b) Limit >Rs.5 Cr.
c) Limit > Rs.1.00 Cr. d) Limit >Rs.25 lac
57 Which application has been replaced with Iprobe
a) SBIDBR b) SBICRM
c) SBIBRD d) SBICUE
58 Which of these is not required to be collected by the officials conducting pre-
sanction survey of a borrower?
a) Educational qualifications of the b) Number of school going children
borrower
c) Landlord’s KYC, if residing in a d) All the above information is required
rented house to be collected
59 To establish the genuineness, track record and reputation of a builder in
terms of timely completion of quality projects, reference cannot be made to
a) Builder’s Bank b) Few other reputed builders in the
area
c) Suppliers of building material to the d) Owners of the units of the builder's
project completed projects
60 In case of doubt regarding the income tax returns filed by the borrower, the Branch
should
a) Engage the services of a chartered b) Engage the services of an empaneled
accountant other than the chartered chartered accountant for verification of
accountant of the applicant for the income tax return with the Income
verification of the income tax return Tax Department
with the Income Tax Department
c) Engage the services of a Tax d) Any one of the above
Consultant/ Lawyer for verification of
the income tax return with the Income
Tax Department
61 The Minimum and maximum members in Private Limited company
a) Min 2 and Max -500 b) Min 2 and maximum 20
c) Min 2 and Max-200 d) Min-2 and no cap for maximum
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62 While reviewing a Title Investigation Report (TIR) received from Bank’s
empaneled Advocate, which of these facts will generally not affect the
mortgage ability of the property?
a) The property is covered under Trust b) The Property/ Plot is situated on an
Property Act. agriculture land
c) The property is held on lease d) All the above will affect the
mortgage ability of the property
63 If there are a number of housing loan cases of same type in an area, the
investigation of the title of the properties/ valuation should be handed over to
a) different Advocates/ valuers and b) same set of Advocates/ valuers to
Branches should not rely upon maintain uniformity in the reports
single Advocate/ Valuer
c) different Advocates/ valuers and d) at least 2 empaneled Advocates/
one of the reports should also be valuers irrespective of the loan
vetted by the law officer at AO/ LHO amount
64 Satisfactory Title Investigation Report from two different empaneled
advocates should be obtained in case of Home Loans of
a) Rs. 1.00 crore and above b) Rs. 50.00 lakh and above
c) Rs. 30.00 lakh and above d) Rs. 75.00 lakh and above
65 Scrutiny of Gift Deed and Power of Attorney (PoA), pertaining to the title of
the property, by Bank’s Law Officer is waived in case of Home Loans below
a) Rs.50.00 Lakh b) Rs. 30.00 Lakh
c) Rs. 75.00 Lakh d) Rs. 1.00 crore
66 Norms regarding obtention of certified copies of Title Deeds directly from the
office of the Sub-registrar is waived for Home Loans
a) Up to Rs.50.00 lakh b) Below Rs.1.00 crore
c) Up to Rs.30.00 lakh d) Certified copies are required to be
obtained in all the cases.
67 In case of Housing Loans, a satisfactory Title Investigation Report (TIR) from
two different empaneled advocates, should be obtained where
a) RERA registration is available and b) RERA registration is not available
Loan amount is above Rs.5 crores and Loan amount is Rs.3 crore and
above
c) there is a case of Second Sales and d) All the above are true
Loan amount is Rs.5 crore and
above.
68 Annexure A pertaining to Title Investigation Reports (TIRs) is meant for
a) Title investigation report format to b) Checklist for the guidance of the
be filled by the Branch/Unit advocates verifying the title to the
properties offered as security
c) Certificate of Title on the Basis of d) Checklist on scrutiny of TIR by the
Certified copies of the Title Deeds Branches
69 Annexure C pertaining to Title Investigation Reports (TIRs) is meant for
a) Title investigation report format to b) Certificate on title to be submitted
be filled by the Branch/Unit by the Advocate
c) Certificate of Title on the Basis of d) Checklist on scrutiny of TIR by the
Certified copies of the Title Deeds Branches
70 Mr Raghavendra has his own piece of land worth Rs. 40 lakhs. He wants to
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construct a house on it and the estimated cost of construction is Rs. 30 lakhs.
He wants maximum quantum of loan. What is the maximum loan that can be
sanctioned to him?
a) Rs.30 Lacs b) Rs. 27 lacs
71 Under the discretionary powers to permit concession in Interest Rates on Car
Loans of Rs. 20.00 Lacs and above, which authority has the powers to reduce
the interest rates by up to 30 basis points below Card Rates?
a) DGM (B&O) b) GM(NW)
c) CGM(Circle) d) DMD(NBG)
72 Courses offered in which of these countries are generally not eligible under
SBI Global Ed-vantage scheme?
a) UK b) China
c) Hong Kong d) Australia
73 The second Credit Information Company (CIC) report required for Auto Loans
above Rs. 5.00 Lacs will be considered from
a) CIBIL b) Experian
c) Equifax d) CRIF Highmark
74 Which of these have to be referred to as part of due diligence in case of pre-
sanction process in SME advances?
a) SBIDBR b) CRILC
c) EPFO Site for defaulting employer d) All the above
company
75 Which of these restrictions/ factors have to be looked into while assessing an
SME advance proposal?
a) Industry exposure b) Group exposure
c) Credit Risk Rating d) All the above
76 Prescreening reports from M/s Cubictree technology Solutions Pvt Ltd
(CTSPL) to be obtained for all proposal for _____
a) Rs. 5 crores and above b) Above Rs. 5 crores
c) Rs. 1 crores and above d) Above Rs. 1 Crore
77 Expand CUE
a) Credit Undertaking Engine b) Credit Underwriting Engine
c) Credit Usance Engine d) Credit Understanding Engine
78 Expand CMA
a) Credit Monitoring Ability b) Credit Monitoring Access
c) Credit Monitoring Appraisal d) Credit Monitoring Arrangement
79 Inspection Report Format
a) FSM-1 b) FSM-2
c) FSM-4 d) FSM-6
80 FFR-1 to be submitted within
81 FFR-2 to be submitted within
82 FFR-I and FFR-II to be submitted by unit having exposure of Rs.
a) 5 Cr and above b) 2 Cr and above
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c) 10 Crores and above d) 25 Crs and above
83 How many modules are there in CUE
a) 7 b) 6
c) 5 d) 8
84 Term loan indebtedness of Rs.5 Cr and above verification of assets to be
conducted within _____ days
a) 10 b) 15
c) 7 d) 30
85 Stock Statement to be submitted within
86 A company has export sales turnover of Rs. 50 Cr. From which return it can
be verified?
a) GR Form/ Softex Declaration form b) GST/VAT return
c) SEBI d) None of the above
87 At the time of sanction of credit facilities, valuation report should not be older
than
c) One year d) 9 months
88 Legal audit is applicable for exposure of credit facilities
a) Rs. 10 crs and above b) Rs. 1 cr and above
c) Rs. 2 Crores and above d) Rs. 5 crores and above
89 Expand LLMS
a) Loan Lifecycle Maintenance System b) Large Loan Management system
c) Large Loan Monitoring system d) Loan Lifecycle Management
System
90 LOS Stands for
a) Loan Originating system b) Loan outstanding Source
c) Limit Out Standing d) Liability Out Standing
91 Hurdle rating in CRA
a) SB-11 b) SB-15
c) SB-10 d) SB-16
92 All Non-Performing Assets (NPA) shall be directly assigned with the rating of
a) SB-10 b) SB-15
c) SB-11 d) SB-16
93 It is mandatory to obtain External Commercial Rating (ECR) of borrower for

all exposures
a) Above Rs.10 Crores b) Above Rs. 20 Crores
c) Above Rs. 25 Crores d) Above Rs. 50 Crores
94 How many domestic ECR agencies are there in India
a) 5 b) 7
c) 6 d) 8
95 _____ is applicable for eligible SME proposals up to Rs. 50 Crs
a) Project Vivek b) Project CUE
c) Project Lotus d) Project PACE
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96 Threshold limit for Exit policy is
a) Rs. 1 Cr and above b) Rs. 10 Crs and above
c) Rs. 2 Cr and above d) Rs. 5 Crs and above
97 Creation of Equitable Mortgage comes under
a) RBI Act,1934 b) Transfer of Property Act,1882
c) BR Act,1949 d) SARFAESI Act,
98 How many years of search report is required in case of properties belonging
to Government, local authorities
c) 30 years d) Not required
99 In case of Education loans of above Rs. 4 lacs, second CIC to be obtained
from
a) Equifax CIC b) CRIF High Mark
c) Experian CIC d) Required for Rs.10 lacs and above
100 In case of flats/villas under construction and developed by builders, property
insurance to be taken
a) At the time of initial disbursement b) After completion of construction
c) After execution of loan document d) Any time during construction
101 For all other Home Loan and Home Related Loan products, SIO will use_____
for pre sanction survey
a) VVM mobile application b) SIO mobile application
c) VMV mobile application d) None of the above
102 The RACPC which is processing the Loan application, is expected to get the inspection
report
a) Within 2 days b) Within 4 days
c) Within a day d) No specific time
103 Compilation of opinion report is waived for gold loan limit up to
c) In all cases. d) Rs.25 lacs
104 Compilation of opinion report is waived for education loan limit up to
a) Rs.10 lacs b) Rs.7.5 lacs
c) Rs. 4 lacs d) Compulsory in all cases
105 Compilation of opinion report is waived for xpress credit loan limit up to
a) Rs.10 lacs b) Rs. 20 lacs
c) Rs. 5 lacs d) Waived in all cases
106 In case of Home Loan Rs.1 cr and above , certified copes of title deed ….. years
to be obtained by Bank’s empaneled advocate
a) Minimum 2 previous title b) Minimum 1 previous title deed
deed
c) No need to obtain d) Latest title deed
107 Obtention of two TIRs is required in the following cases
a) Housing Loans where the RERA b) Housing Loans where the RERA
registration is available and Loan registration is available and Loan
amount is above Rs.5 crores amount is above Rs.1 crores
c) Housing Loans where the RERA d) Loan amount above Rs. 50 lacs &
registration is available and Loan above
341
amount is above Rs.2 crores
108 Obtention of two TIRs is required in the following cases
a) Second Sales and Loan amount is b) In respect of Housing Loans where
Rs.1 crore and above. RERA registration is not available and
Loan amount is Rs.1 crore and above.
c) Only b is correct d) Both a & b are correct
109 In case of Builder Tie Ups (in case of Home Loans), for approval of the project,
search of the title for not less than ___ years is mandatory.
110 In all cases, where two TIRs are required to be obtained, certified copies of all relevant
documents will be obtained directly from the office of the concerned Sub-Registrar/
Registrar office and compare the same with the documents submitted by the customer
for all Home Loans of Rs.1 crore and above.
a) Only one panel advocate and law b) Both panel advocate
officer
c) Both panel advocate and law d) All incorrect
officer
111 Even if the Sale Deed is executed by the Power of Attorney holder without the
knowledge of the death of the principal/owner
a) It is valid b) Law officer opinion required
c) Deviation approval required. d) It is not valid and binding
112 The sanction of a home loan will be valid for ___ months (including PAL)
a) 3 months from documentation b) 3 months from sanction
c) 6 months from documentation d) 1 month from sanction
113 Rs _______plus taxes towards processing fee will be recovered for each
revalidation of sanction in case of housing loan.
a) 5000 b) 1000
c) 3000 d) 2000
114 Scores higher than ____ indicate low risk and score less than ___ indicates high risk.
a) 720,550 b) 700,520
c) 750,520 d) 800,550
nd
115 2 CIC report for education loan
a) Experien b) Equifax
c) CRIF High mark d) CIBIL
116 Proper identification of the property can be done during the pre-sanction survey with
the help of
a) Borrower b) Valuer
c) Boundaries d) Neighbour
117 Discretionary Powers to approve deviation for any default/write-off appearing in
CIBIL in respect of non-Credit Card dues above Rs. 50,000/= (Applicable only for
Housing Loan) is
a) CGM (Circle) b) GM (Network)
c) DGM (B&O) d) No discretion available, proposal to be
rejected
118 Non-Cooperative borrowers
a) aggregate FB and NFB facilities of Rs. b) aggregate FB and NFB facilities of Rs. 5
10 crores and above crores and above
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c) FB facilities of Rs. 5 crores and above d) aggregate FB and NFB facilities of Rs. 25
crores and above
119 “SBI Default Borrower Registry (SBIDBR)”
a) https://sbidbr.sbi:9443 b) https://dbr.sbi:9443.
c)https://sbidbr:9443. d) https://sbidbr.sbi:9444
120 When a party’s means are estimated at Above Rs.10.00 lacs to Rs.25.00 lacs
a) Small means b) Moderate means
c) Good means d) Fair means
121 When a party’s means are estimated at above Rs.1.00 crore to Rs.10.00 crores.
a) Very good means b) Large means
c) Lear large means d) Good means
122 Time norms for sanction of loans above Rs. 5 crores
c) 22 days d) Two weeks
123 Which model is used for exposure upto Rs. 50 lacs
a) CUE MODEL b) CUE LITE
c) CUE d) CRA
124 Working capital limits and term loans sanctioned and not availed within ____
months from the date of sanction needs revalidation
a) 3 months 2 months
c) 6 months 1 month
125 Continuation of the limit can be obtained maximum period of
a) 180 days plus 90 days b) 180 days
c) 270 days plus 30 days d) 90 days only
126 As per Loan policy Guidelines of the Bank, Non-Corporate borrowers includes
a) Partnership firm, Trust b) Proprietorship, Partnership Firm,
HUF, Trust
c) HUF, Society, Proprietorship d) Partnership firm, Trust, HUF
127 "MSME UDAAN" a new product has been launched for promoting and
financing ___________
a) Start ups b) Health care
c) Already existing units d) Builders
128 RINN-SURAKSHA for Micro and Small Enterprises scheme is for ______
a) For fundings Life Insurance b) For funding of CGTSSI
premium of proprietor
c) For funding insurance of stocks in d) For funding of CGTMSE fee plus
the unit applicable GST.
129 The deadline for submission of audited financials will be __________ of that
calendar year from the date of closure of financial year
a) 30th September b) 31st October
c) st
31 December d) 31 st July
130 Who decides the accounting policies used by a company in preparation of
financial statements?
a) Management b) Auditor
c) MCA Bank
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131 Two CICs for MSME Advances for Unsecured Loans is required for limit above
a) Rs. 2 lacs b) Rs. 5 Crores
c) Rs. 1 lac d) Rs. 1 Crore
132 What is the minimum mandatory claim period to be stipulated in Bank
Guarantee as per revised instructions
c) No minimum mandatory claim d) 6 months
period to be stipulated
133 What is the revised exposure for handling SME Proposals under RB&O
Vertical where CPC have been established
a) Upto Rs. 50 crores b) Upto Rs. 150 crores
c) Upto Rs. 100 crores d) Upto Rs. 25 crores
134 What is the penalty to be applied in case of diversion of funds observed in
exposure above Rs. 50 crores
a) 2% b) 5%
c) 1% d) 3%
135 What is the frequency of Inspection as per Project Pratham for Loans up to Rs.10
lacs
a) Yearly by Bank Officials and b) Quarterly by Bank Officials and Monthly
Quarterly by SBOSS by SBOSS
c) Yearly once by Bank Officials and d) Half yearly by Bank Officials and
once by SBOSS Quarterly by SBOSS
136 TIRs furnished by Bank’s empaneled advocates, where PoAs are involved (from 2
empaneled advocates) need to be additionally vetted by the Bank’s Law Officer
for an amount more than Rs.___?
a) Rs. 1 crore b) Rs.30 lac
c) Rs.50 lac d) Rs. 2 crore
137 Who is the Authority to permit continuation of limits for limits sanctioned upto
RCC
a) DGM (B&O) b) Sanctioning Authority i.e RCC
c) ZCC d) GM(NW)
138 Who is the Authority to permit continuation of limits for limits sanctioned upto
ZCC & CLCC
a) GM (NW) b) CLCC
c) RCCC d) DGM (CCO)
139 What is the rating criterion for Takeover of advances for loans up to Rs. 50 Cr.
a) CUE 7 / SB 7 b) CUE 8 / SB 8
c) CUE 10 / SB 10 d) CUE 5 / SB 5
140 Accounts proposed to be taken over should not be classified as SMA 2 or NPA
for preceding ______ years?
a) 2 b) 5
c) 3 d) 1
141 What is the maximum debit mandate amount to be obtained in case of dynamic
SI/NACH
a) 100% of applicable EMI b) 120% of applicable EMI
c) 125% of applicable EMI d) 130% of applicable EMI
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142 What is the minimum amount eligible for takeover for Agriculture Cash Credit
a) 1.00 lac b) 10.00 lac
c) 2.00 lac d) 5.00 lac
143 As per takeover norms, Stock & Receivable Audit is to be conducted for
disbursement of any credit facilities above Rs. 5.00 Cr. except for units having
CRA rating of ____?
a) SB 7 & better b) SB 3 & better
c) SB 10 & better d) SB 5 & better
144 What is the minimum ECR criterion for Takeover of advances for loans above
Rs. 50 Cr.
a) BBB or better b) BBB – or better
c) AAA d) BBB+
145 Statement of Asset and Liabilities is required to be obtained in the form of

notarized affidavit in case of which type of loans in SME/C&I advances
a) For all loans SB 5 and worse b) For all loans SB 10 and worse
c) For all loans SB 9 and worse d) For all loans SB 7 and worse
140 Accounts proposed to be taken over should not be classified as SMA 2 or NPA
for preceding ______ years?
a) 2 b) 5
c) 3 d) 1
141 What is the maximum debit mandate amount to be obtained in case of dynamic
SI/NACH
a) 100% of applicable EMI b) 120% of applicable EMI
c) 125% of applicable EMI d) 130% of applicable EMI
142 What is the minimum amount eligible for takeover for Agriculture Cash Credit
a) 1.00 lac b) 10.00 lac
c) 2.00 lac d) 5.00 lac
143 A borrower can engage the services of intermediaries for preparation of financial
statements, CMA data etc. for submission to Bank. The intermediaries can be
a) Chartered Accountants b) Cost Accountants
c) Financial Consultants d) Any of the above
144 What is the minimum ECR criterion for Takeover of advances for loans above
Rs. 50 Cr.
a) BBB or better b) BBB – or better
c) AAA d) BBB+
145 Statement of Asset and Liabilities is required to be obtained in the form of
notarized affidavit in case of which type of loans in SME/C&I advances
a) For all loans SB 5 and worse b) For all loans SB 10 and worse
c) For all loans SB 9 and worse d) For all loans SB 7 and worse
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ANSWER KEY
Q 1 2 3 4 5 6 7 8 9 10
ANS D C D D B A D C D C
Q 11 12 13 14 15 16 17 18 19 20
ANS D C A B C B A A A D
Q 21 22 23 24 25 26 27 28 29 30
ANS D A A A B A D A D A
Q 31 32 33 34 35 36 37 38 39 40
ANS D D A A B D D D D D
Q 41 42 43 44 45 46 47 48 49 50
ANS D D B D C D B B D C
Q 51 52 53 54 55 56 57 58 59 60
ANS B C B D B B A C C A
Q 61 62 63 64 65 66 67 68 69 70
ANS C C A A D B D A B A
Q 71 72 73 74 75 76 77 78 79 80
ANS C B B D D A B D D B
Q 81 82 83 84 85 86 87 88 89 90
ANS D C A B C A A D D A
Q 91 92 93 94 95 96 97 98 99 100
ANS C D D C A D B C B B
Q 101 102 103 104 105 106 107 108 109 110
ANS A A C B D A A D A B
Q 111 112 113 114 115 116 117 118 119 120
ANS D B A B C C D B A D
Q 121 122 123 124 125 126 127 128 129 130
ANS A C B C B B A D B A
Q 131 132 133 134 135 136 137 138 139 140
ANS A C C A A C A A A C
Q 141 142 143 144 145 146 147 148 149 150
ANS A A D A C
Back to Index page
346
PAYMENT SOLUTIONS, TRANSACTION PRODUCTS
1 GeM is the National Procurement portal offering end-to-end solution for all
procurement needs of Central and State Government departments, PSUs,
Autonomous institutions, etc. GeM stands for
a) Government e-Merchandise b) Government e-Market Place
c) Governance e-Markets d) Governance e-Merchandise
2 To provide various e-payment system integrated with www.gem.gov.in for
various banking services that may be required from time to time, which of
the following has signed an MoU with GeM
a) GITC, Corporate Centre, Mumbai b) GAD, Belapur, Corporate Centre
Mumbai
c) GBU, Corporate Centre, New Delhi d) Government Departments in the
respective LHOs in accordance with
their Govt. business requirements
3 Which of the following is not a feature to the Bank by opening GeM Pool
Account
a) GeM Pool account is opened for b) No manual operations in the
online payment of value of goods account by the signatories and so
no Cheque book and no ATM/INB
rights to be provided.
c) Home Branch & non-Home d) Accounts to be opened with a
Branches can manually debit the separate product code for GPA–
account for specific purpose only CA & GPA-SB with special
mandatory features
4 For GeM Pool Account, short Virtual Account Number (VAN) is created
by the branch at the time of onboarding. The structure of Short VAN is
____________
a) Six digit alphanumeric prefixed with b) Eight digit alphanumeric prefixed
GM with GM
c) Ten digit alphanumeric prefixed d) Eleven digit alphanumeric prefixed
with GM with GM
5 For GeM Pool Account, which of the following VAN will be auto generated by
INB application during registration process
a) Short VAN b) Long VAN
c) Both (a) and (b) d) Neither of the above
6 GeM Pool Account (GPA) operates through two models developed for
operation through GPA. Which of the following is the correct set of models
for GPA
a) Challan Model & Non- b) Challan Model & Digital Model
Challan Model
c) Physical Model & Digital Model d) None of the above
7 In GeM Pool Account (GPA), which of the following model is to fund GPA with
lump sum amount which can be utilized for procurement as per their
requirement
a) Challan Model b) Non-Challan Model
c) Digital Model d) Physical Model
8 Which of the following is not a direct benefit to the Bank due to opening
and maintaining GeM Pool account
a) Source of CASA funds b) Increases customer stickiness
347
c) P-segment products & cross selling d) Better liaising with Govt.
to employees of the organisation Departments
9 Which of the following is not a direct benefit to the Government due to
opening and maintaining GeM Pool account with our Bank
a) Savings to Exchequer as Buyer b) Employees in Govt. Departments
departments get finer pricing can avail Loan products at attractive
price
c) Transparency, paperless & d) No need to preserve papers as
contactless there is an audit trial for all
transactions
10 Which of the following customers is not the correct target for our Cash
Pickup product
a) Traders, Commodity Merchants, b) Service units like
Garment Shops and Super Markets Restaurants, Hospitals,
Nursing Homes, etc
c) Petrol Pumps & Gas Agencies d) Manufacturing Units and Industry
Majors channelizing their products
to their Dealers
11 In Cash Pick up product, the percentage of fee income for the Transacting
Branch and Home Branch on Collections is
a) 70% and 10% b) 50% & 30%
c) 40% each d) 60% & 20%
12 Which of the following is not correct with regard to conduct of initial
meeting with the client in the Cash Pick Up product
a) Understand the Business model of b) Help client understand CMP
the client and suggest CMP products
products accordingly
c) Scope for marketing Customer d) Finding out financial details of the
Value Enhancement products from client like Turnover, Credit
the customer relationship, etc
13 Under Cash Pickup product, all the cash picked up under the Scheme from
the customers’ doorstep will have to be deposited with ____________ on the
same day and credit is offered to customer on the ____________day
a) SCAB; Next b) SCAB; Same
c) Transacting Branch; Same d) Home Branch; Next
14 Under Cash Pick up product, customers can utilize the funds collected from
their doorsteps on _________________day
a) T+0 b) T+1
c) T+2 d) None of the above
15 Under Cash Pick up product, Cash pick up option is available on
a) Daily Basis b) Twice Daily- One in the Forenoon
and One in the Afternoon
c) Per Call Basis d) Both (a) & (c)
16 Under our e-Payment platform, which are the products offered for the
customers
a) DCR (Direct Credit within SBI) b) RTGS
c) NEFT d) All of the above
17 Under our e-Payment platform, the client can give the payment instructions
file in which of the following formats
a) .txt (delimited text format) b) .xls (MS-Excel format)
c) Only (b) d) Either (a) or (b)
348
18 The URL of the portal hosted by our CMP on internet for e-Payment is
a) https://newcmp.onlinesbi.com b) https://cmp.onlinesbi.com
c) http://newcmp.onlinesbi.com d) https://onlinesbi.com
19 Under our e-Payment platform, the client’s data file is accepted by CMP in
which of the following ways:
a) Portal Direct Upload b) Maker, Checker and Releaser
c) H2H d) All of the above
20 Under our e-Payment platform, the client can know the status of the
transactions uploaded and can get the MIS (or Reverse File) through which of
the following:
a) Auto generated email to the b) Client has to download from the
customer from CMP portal
c) Only (b) d) Either (a) or (b)
21 ____________________ is a unique tool that enables Corporate to make
deposits using alphanumeric codes rather than the actual 11 digit SBI
account number
a) Viral Account Number (VAN) b) Validated Account Number (VAN)
c) Viral Account Node (VAN) d) Virtual Account Number (VAN)
22 Which of the following is not a benefit for the corporate customers in
using VAN?
a) Availability of real time MIS b) Multiple VAN can be mapped to a
single Collection account
c) VAN eases for quicker credit d) Employees/Dealers/Vendors can
appraisal of the Corporate use their own VAN to remit funds to
the Corporate
23 The total length of VAN is _______
a) 23 b) 25
c) 13 d) 11
24 The first six character in a VAN represents
a) Unique identifier of the Corporate’s b) Unique identifier of the Corporate
customer/employee
c) Home Branch Code with left d) Uniform identifier of all the
padded with zero Corporates
25 VAN does not support which of the following products
a) SBI Cheque b) NEFT & RTGS
c) RINB & CINB d) UPI
26 Which of the following devices are compatible for SBI PoS
a) PSTN b) Desktop GPRS
c) Portable GPRS d) All the above
27 Which of the following SBI PoS variants is free

a) PSTN b) Desktop GPRS
c) Portable GPRS d) All the above
28 The term MDR in PoS means
a) Multiple Deduction Rate b) Merchant Discount Rate
c) Merchandise Deduction Rate d) Merchandise Discount Rate
29 The MDR in PoS for Small Merchants with turnover upto Rs. 20 lakhs in the
previous FY is
a) Not exceeding 0.50% + GST (MDR b) Not exceeding 0.50% + GST (MDR cap
cap of Rs. 500 per transaction of Rs. 200 per transaction
c) Not exceeding 0.20% + GST (MDR d) Not exceeding 0.40% + GST (MDR cap
349
30 The MDR in PoS for Merchants other than Small Merchants with turnover above Rs.
20 lakhs in the previous FY is
a) Not exceeding 0.90% + GST (MDR b) Not exceeding 0.75% + GST (MDR cap
c) Not exceeding 0.50% + GST (MDR d) Not exceeding 1.00% + GST (MDR cap
31 The De-installation charges in PoS if de-installation is done within 6 months
from the date of installation
a) Rs.1000 + GST b) Rs.2000 + GST
c) Rs.500 + GST d) Rs.250 + GST
32 The De-installation charges in PoS if de-installation is done after 6 months but
before 1 year from the date of installation
a) Rs.100 + GST b) Rs.200 + GST
c) Rs.150 + GST d) Rs.250 + GST
33 The De-installation charges in PoS if de-installation is done after 1 year
from the date of installation
a) Rs.100 + GST b) Nil
c) Rs.50 + GST d) Rs.250 + GST
34 Maximum cash that can be withdrawn from Cash@PoS using debit/prepaid
cards at PoS terminals in Tier 1 & Tier 2 centres is
a) Rs.1000 b) Rs.3000
c) Rs.2000 d) Rs.5000
35 Maximum cash that can be withdrawn from Cash@PoS using debit/prepaid
cards at PoS terminals in other than Tier 1 & Tier 2 centres is
a) Rs.1000 b) Rs.3000
c) Rs.2000 d) Rs.5000
36 Minimum amount of withdrawal in Cash@PoS is ________and in multiples of
a) Rs. 500 & Rs.100 b) Rs.1000 & Rs.100
c) Rs.200 & Rs.100 d) Rs.100 & Rs.100
37 MOPAD is a One-stop solution for Merchants provided by SBI on PoS terminals.
MOPAD stands for
a) Merchant Option Payment Acceptance b) Multi Option Payment Acceptance
Device Device
c) Multi Option Payment Administration d) Multiple Option Payment Acceptance
Device Device
38 Which of the following is not enabled for MOPAD to receive payments
a) Credit Cards, Debit & Prepaid b) Bharat QR App
Cards
c) UPI App d) Cash
39 MOPAD generates charge slips for Merchants for which of the following mode
of payments
a) Credit Cards, Debit & Prepaid b) Bharat QR App
Cards
c) UPI App d) All modes of payment
40 In MOPAD, the consolidated MIS for the Merchants can be obtained from
a) Onlinesbi.com b) Logging in to the dedicated web
portal
c) Mail from Home Branch d) Logging into CINB
350
41 Which one of the following is not a type of Prepaid Card
a) Personalised Prepaid Cards b) Non-Personalised Prepaid Cards
c) Creamy Prepaid Cards d) Both (a) and (b)
42 The minimum and maximum amount for Gift Cards are: _________ &________
a) Rs.100 & Rs.10,000 b) Rs.500 & Rs.5,000
c) Rs.1,000 & Rs.10,000 d) Rs.500 & Rs.10,000
43 Validity period for Gift cards is
a) 3 months b) 6 Months
44 Gift Cards can be issued at
a) SBI Branches b) INB
c) SBI Customer Service Point d) Both (a) & (b)
45 The number of times a Gift Card can be reloaded is
a) Any number of times b) 3
c) 5 d) Not reloadable
46 The minimum and maximum amount that can be issued for Achiever Card
is
a) Rs.100 & Rs.1,00,000 b) Rs.500 & Rs.50,000
c) Rs.1,000 & Rs.50,000 d) Rs.100 & Rs.50,000
47 Which of the following Prepaid cards would be suitable for loading
employees’ salaries, TA Bills, Medical Bills, bonus, Incentive, Commission to
Agents/Distributors, etc
a) Gift Cards b) Achiever Card
c) e-Z Pay card d) Imprest Card
48 ____________Card is suitable for Corporates to give incentives to their
employees
b) e-Z Pay card d) Imprest Card
49 Which of the following is incorrect with regard to e-Z Pay card
a) Validity period 10 years b) Min. Rs.100/- and Total balance
should not exceed Rs.1,00,000/- at
any point of time
c) Can be used for Cash@PoS or d) Maximum amount that can be
Online shopping loaded by paying cash is limited to
Rs.1,00,000/- per month
50 For eZ Pay card, the responsibility of submission of KYC document of
employees/beneficiaries of Listed Companies lies with
a) The respective Listed Company b) Bank
c) Responsibility of the concerned d) Full exemption due to the company
Employee having listed as public limited
company
51 Company co-branded prepaid card for disbursement of petty cash expenses
of corporates is called ____________Prepaid cards
52 Which of the following cards has the lowest validity period
a) State Bank Multi-currency Travel b) Achiever Card
Card
351
53 In State Bank Multicurrency Foreign Travel Card, what happens if one of the
customer’s currency balances is not sufficient to buy something in that
particular currency?
a) The customer has to visit nearby b) The customer has to get in touch
SBI Foreign office or authorized with his Home Branch to get the
Money changers and swap from swapping of Foreign Currency
the currency having balance to the balance in the currency which he
one which is deficit wishes to use
c) Nothing can be done by the d) The balance of the transaction will
customer. automatically be deducted from any
other available currencies on the
customer’s card converted at
applicable exchange rate in certain
order of priority of the currencies
54 The security feature available in State Bank Multi-Currency Foreign Travel Card
is
a) Chip protected b) PIN protected
c) Magnetic stripe protected d) Both (a) & (b)
55 In which of the following, State Bank Multi-Currency Foreign Travel Card
cannot be used
a) To withdraw in local currency ATMs b) To pay directly for goods or services
Worldwide, displaying the at any merchants abroad (in store
Mastercard Acceptance mark or online) that accept Mastercard
cards
c) ATMs or Merchants or websites d) All of the above
registered in India, Nepal and
Bhutan
56 In SBI digi Voucher, the login credentials are____________&__________
a) Account No. & Customer chosen b) CIF No. & Account No.
Password
c) Account No. & Home Branch Code d) Customer chosen User Name &
Password
57 Which of the following transaction is not possible through DigiVoucher
a) SB Deposit and Withdrawal b) Deposit in Loan account
c) Payment of RD Instalment d) NEFT, RTGS & Demand Draft
58 To generate OTP even in the absence of Wi-Fi, Mobile Network or SIM card,
the Bank’s App which can be used is
a) SBI DigiVoucher b) SBI Secure OTP
c) BHIM SBI Pay d) SBIS on the Go
59 To activate SBI Secure OTP app, the user has to do the Registration process
in which of the following
a) SBI Secure OTP app b) Online SBI
c) Either (a) or (b) d) Both (a) and (b)
60 The Bank’s App which is otherwise called as Missed Call Banking is____
a) SBI Quick b) SBI Secure OTP
c) BHIM SBI Pay d) SBIS on the Go
61 The services available under SBI Quick app can be activated for mobile
number that is registered for_______________
a) All the accounts within the same b) All the accounts within the same
CIF CIF in the Home Branch
c) Particular account with the Bank d) None of the above
352
62 _________________is a simple and quick way to claim funds sent by State
Bank of India customers through OnlineSBI or State Bank Anywhere
a) State Bank mCASH b) SBI Quick
c) SBI Secure OTP d) SBI DigiVoucher
63 In State Bank mCash, the recipient receives a link in SMS or email and
Passcode containing__________ number of digits
a) Four b) Six
c) Five d) Eight
64 The maximum number of accounts which can be stored under “Favourites”
section of State bank mCash is
a) Three b) Four
c) Five d) Eight
65 Which of the following is not true with regard to No Queue App?
a) Conveys the estimated waiting time b) Number of customers ahead
c) Map showing direction to reach d) The process related to the proposed
the branch transaction the customer intends to
do
66 SBI Fastag works on ___________________ Technology
a) Radio Frequency Identification b) Radar Frequency Identification
(RFID) (RFID)
c) Remote Frequency Identification d) Radio Forwarding Indicator
(RFID) (RFIN)
67 SBI Fastag can be used in Toll Plazas in
a) All National Highways b) All State Highways
c) Select State Highways d) Only (a) & (c)
68 Which of the following is not a feature of SBI Fastag
a) Automatic deduction of toll charges b) When the balance in the prepaid
without waiting at Toll Plazas SB/CA is insufficient, the unutilized limit
of CC/OD account will automatically
swept into the SB/CA
c) Facility to map more than two vehicles’ d) Can be recharged online using multiple
tags to a single wallet modes of payment
69 Which of the following is not a benefit of SBI Fastag
a) No need to carry cash at toll plazas b) Separate lanes at toll plazas for
FASTag vehicles resulting in no waiting
time and saves fuel
c) Instant SMS alert on registered mobile d) Better credit rating for SME units
number for toll free deduction and low availing SBI Fastag
balance
70 Which one of the following documents is not a required document for getting
Fastag?
a) RC copy of the vehicle and Driving b) PAN, ID and Address proof
License
c) A Self-declaration as to the number of d) Passport size photograph of the
vehicles owned and operated by the customer
entrepreneur
71 Which of the following is incorrect with regard to availing State Bank Collect
facility
a) Institutions/Merchants should have b) Ideally suitable for Educational
CINB multi-user variant institutions, Jewellery showrooms,
Govt. Departments, Trusts and
353
apartment residents associations
c) Website is mandatory to avail State d) None of the above

Bank Collect
72 In State Bank Collect, if the Remitter details are known to the institutions
such as School/College fees, the model is called as
a) Upload Model b) Open page Model
c) Download Model d) All of the above
73 In State Bank Collect, if the Remitter details are not known to the institutions such
as School/College fees, the model is called as
a) Upload Model b) Open page Model
c) Download Model d) All of the above
74 Which one of the following is not a benefit for the customers by availing
State Bank Collect facility
a) 24*7*365 Payment facility from b) Payment receipt with institution logo
anywhere can be downloaded instantly or at
any time.
c) Institutions availing State Bank d) Multiple payment options
Collect facility are given better
credit rating
75 SBI’s Payment Aggregation solution is known as
a) SBI ePay b) SBI Pay
c) BHIM SBI Pay d) Bharath QR
76 Which one of the following is not a strength for SBI ePay
a) Ease of integration b) Faster MIS, System-driven
reconciliation & settlement from
single source
c) Customer gets discount rate for d) Complete solution provides by SBI
payments made through SBI ePay without involvement of private
entities, giving complete
transparency in business and
operations for the customer
77 State Bank Foreign Travel Card is available in .......... Currencies.
a) Eight b) Five
c) Three d) Ten
78 A user can request up to .......gift cards in a month for an account.
a) 10 b) 5
c) 2 d) 1
79 To enable the Branches to accept Other Bank cheque deposits using VAN
instead of Account Number as beneficiary, a special application in CTS has
been built with the name __________
a) NCR (National Cash Register). b) NCR (National Clearing Register)
c) NCR (Nominal Cash Register) d) None of the above
80 Applicable charges for Virtual Account Number (VAN) -Cash is ________
a) ₹ 5/1000 Min ₹ 50/-per transaction. b) ₹ 10/1000 ₹ Min 100/-per transaction.
c) ₹ 2/1000 Min ₹ 20/-per transaction. d) ₹ 1/1000 ₹ Min 10/-per transaction
81 Applicable charges for Virtual Account Number (VAN) -Clearing for SBI
cheques _________
a) ₹ 0.05 /1000 Min. ₹ 5/- per instrument b) ₹ 0.02 /1000 Min. ₹ 5/- per instrument
c) ₹ 0.10 /1000 Min. ₹ 5/- per instrument d) No charges applicable
354
82 Applicable charges for Virtual Account Number (VAN) - Clearing for CTS -
Cheques (Clear Funds) -_________
a) ₹ 0.05 /1000 Min.₹ 5/- per b) ₹ 0.02 /1000 Min. ₹ 5/- per
instrument instrument
c) ₹ 0.10 /1000 Min. ₹ 5/- per instrument d) ₹ 0.04 per ₹1000 Minimum 10/- per
instrument
83 Applicable charges for Virtual Account Number (VAN) - Outstation Cheques
a) ₹ 50/- per instrument b) ₹ 40/- per instrument
c) ₹100/- per instrument d) ₹200/- per instrument
84 Applicable charges for Virtual Account Number (VAN) on account of Cheque
Return Charges deposited for credit of VAN account (Local Clearing and
Outstation collections – All locations)
a) ₹150/- per cheque for cheque amount b) Nil Charges
up to 25,000/
c) ₹ 250/-per cheque for cheque amount d) ₹150/- per cheque for cheque amount
more than 25,000/- up to 25,000/- and ₹ 250/-per cheque
for cheque amount more than 25,000/-
85 Which of the following merchants can avail State Bank Collect?
a) Merchants with non-personal SBA/c b) Merchants with Saral facility
c) Merchants with Khata facility d) Individual merchants
86 Which one of the following is a benefit of State Bank Collect?
a) Ensures only correct amount is b) No possibility of remitting fees for
accepted the same student second time
c) Provision to collect late fee d) All the above
87 Which one of the following is not a feature of VAN?

a) B2B b) B2C
c) C2B d) A Corporate can have multiple
VAN against a single account
88 Which one of the following is not true regarding VAN?
a) Corporate customers who have b) After approval by the respective
availed the Vyapar or Vistaar Branch and Circle, the same will be
facility can register online for a 6- allotted to the Corporate
digit alphanumeric Short VAN of
their choice
c) Before allotment, system will d) Corporate cannot opt for amount
validate if the same Short VAN has validation and dealer code
already been given to another validation
corporate
89 What is one of the best practices for combination key management?
a) Combination key has to be b) Combination key has to be kept in a
changed at least once in 30 days sealed cover and kept as a Branch
Document
c) Combination key has to be d) All of the above
memorised, but should not be
written down anywhere,
except in sealed covers
90 Among the following, which one is NOT the function of ATM Switch Centre
(ASC)?
a) Commissioning of ATMs b) Maintenance of Positive Balance
Files
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c) Resolution of customer complaints d) Card management services
91 MS Vendors means
a) Management of Service providers b) Managed Service Vendors
c) Multipurpose Service Vendors d) Multinational Service Vendors
92 What is the meaning of NOT ON US (NT) transactions?
a) Card Issuing Bank and ATM b) Card Issuing Bank is SBI and ATM
provider is same bank provider is other than SBI
c) Card Issuing Bank is other than d) Card Issuing Bank is other than SBI
SBI and ATM provider is SBI and ATM provider is also other than
SBI
93 Among the following, which statement is correct in respect to deposit of
cash in CDMs/ADWMs?
a) Machine NOT returns the note b) Machine accept the note and afford
even though it finds foreign object credit to customer account even
on the note though note is folded and sticky
notes
c) Machine NOT returns the note and d) Machine NOT returns the note and
afford credit to customer account but retracts to Upper Reject Box
even though note is suspect /
counterfeit note
94 What is the per day transaction limit of SBIFTC multicurrency contactless
card?
a) US$ 50.00 or equivalent in other FCY. b) US$ 2500.00 or equivalent in other
FCY.
c) US$ 5000.00 or equivalent in other d) US$ 50000.00 or equivalent in other
FCY. FCY.
95 What is the maximum number of transactions allowed in 24 hours in
SBIFTC multicurrency contactless card?
a) 12 b) 5
c) 8 d) 10
96 Easy Collect’ product was especially developed to facilitate__
a) Collection of school fee/college b) Collection of insurance premium
fee/donations
c) Collection of EMI d) None of the above
97 What is the charge for SBI ePAY lite, while transacting through Rupay Debit
Card ___
a) Rs.10+GST b) Rs.15+GST
c) Nil d) Rs.25+GST
98 What is the concession in CMP Charges after revamp PLATINUM CURRENT
ACCOUNT Variant for e-Collections (VAN)?
a) Nil b) 75% discount on card rate
c) 25% discount on card rate d) 50% discount on card rate
99 What is the maximum number of discounted POS machine offered for
PLATINUM CURRENT ACCOUNT Variant?
a) 1 b) 2
c) 4 d) 3
100 What is “Mission Regain-II” campaign?
a) Opening of more Current Accounts b) Sourcing of more CMP Customers
c) Activation of inoperative Current d) Increasing the VAN registrations
Accounts
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ANSWER KEY
Q 1 2 3 4 5 6 7 8 9 10
ANS b c c a b a b d b d
Q 11 12 13 14 15 16 17 18 19 20
ANS a c b b d d d a d c
Q 21 22 23 24 25 26 27 28 29 30
ANS d c a b d d a b d a
Q 31 32 33 34 35 36 37 38 39 40
ANS c c b a c d b d d b
Q 41 42 43 44 45 46 47 48 49 50
ANS c d c d d a c b d a
Q 51 52 53 54 55 56 57 58 59 60
ANS d a d d c a c b d a
Q 61 62 63 64 65 66 67 68 69 70
ANS c a d c d a d b d c
Q 71 72 73 74 75 76 77 78 79 80
ANS c a b c a c a a a c
Q 81 82 83 84 85 86 87 88 89 90
ANS b d c d a d b d d c
Q 91 92 93 94 95 96 97 98 99 100
ANS b c d c b b c b c c
Back to Index page

357
FOREIGN EXCHANGE
Types of Accounts
NOSTRO Our Account with You
Accounts ( SBI having account with HSBC, London in USD i.e, foreign
currency)
VOSTRO Account Your account with us (HSBC, London is having account with SBI in
INR)
LORO Account Their account with you (Account of a third bank)
Foreign Exchange Dealers Association of India (FEDAI)

➢ it is a limited company under Section 25 of Companies Act, 1956
➢ main functions are framing rules on forex transactions, act as advisory body to RBI
➢ Quoting LIBOR for Non-resident deposit interest
➢ Providing weekly average rates of major currencies for revaluation purpose
Transaction Types
Current Account Import and export (visible), services, and unilateral transfers
(invisibles) usually in a year
Capital Account Shows net change in ownership of physical and financial assets for a
nation, i.e. borrowings and lending, investments ( Changes in Asset
or liability of outside India of a resident of India (OR) assets or
liabilities in India of resident outside India)
Definition of Resident as per FEMA : Any person residing in India for more than 182 days
during the proceeding financial year
FOREIGN TRADE POLICY 2023

➢ FTP is being framed by DGFT functioning under Ministry of Commerce, GOI.
➢ FTP is normally valid for 5 years and the current policy FTP Policy was released on
March 2023
Four Pillars of FTP 203:
Incentive to Remission : remission of Export Promotion through Collaboration:
various taxes, duties, levies on inputs used with Exporters, States, Districts, Indian
and exemption from certain duties, GST etc. Missions
Ease of doing business: reduction in Emerging Areas – e-commerce developing
transaction cost and e-initiatives districts as Export Hubs
Aim of FTP 2023:
Process Re-engineering and Automation: Greater faith on exporters through automated
IT system. Duty exemption schemes will now be implemented through Regional Offices in
a rule-based IT system environment.
Town of Export Excellence (TEE): Four new towns, namely Faridabad, Mirzapur,
Moradabad and Varanasi designated as TEE in addition to 39 towns
Recognition of Exporters: Status holders will now be partners in capacity building
initiatives
Promoting Export from districts: FTP aims to partner with State Govts. To take forward
Districts as Export Hubs (DEH) through an institutional mechanism – State Export
Promotion Committee and District Export Promotion Committee.
Streamlining SCOMET Policy: Robust export control to provide access of dual use High
end goods and technologies for exports under SCOMET (Special Chemicals, Organisms,
Materials, Equipment and Technologies)
358
The policy has four parts.

Part 1 Trade policy
Part 2 Handbook of Procedures
To know the procedure, the agencies and the documentation required to take
advantage of Foreign Trade Policy
Part 3 Appendices & Aayat Niryat Forms
Part 4 Standard Input and Output Norms (SION)
Based on SION, exporters are provided the facility to make duty-free import of
inputs required for manufacture of export products under the Duty Exemptions
Scheme or Duty Remission Scheme.
IMPORT EXPORT CODE (IEC Code)

➢ eligibility to export from or import into India commodity or goods or services.
➢ IEC codes are 10-digit code issued by DGFT (Now Alpha Numeric)
➢ One PAN one IEC code. Now IEC is PAN number of the applicant.
➢ One IEC code applicable to all branches of /divisions /units /factories of one company.
➢ IEC is valid for life but it can be cancelled, suspended or blacklisted. Now every year it
has to be validated by the customer.
Validity of IEC can be checked at www.icegate.gov.in. ).
Code Status Position to the Bank

0 Normal Freely accepted to the bank
9 Amended
1 Block listed Not accepted to the bank. No accounts to be
2 Suspected opened or No transactions allowed
3 Cancelled
4 Clear from Block list satisfactory explanation backed by underlying
7 Revoke Suspension documentary evidence needed. Enhanced
8 Revoke Cancellation transactional due diligence to be carried out
Categories exempted from obtaining IEC

➢ Ministries / Departments of Central or State Government
➢ Personal import / export not connected with trade / manufacture / agriculture.
➢ Import/export from / to Nepal / Myanmar (through Indo-Myanmar border areas) up to
CIF Rs 25000/- per consignment
➢ Import/export through China (through Gunj & Namgaya Ship Kila) up to CIF
Rs1,00,000/-
➢ Import / export of goods through Nathula Up to CIF Rs.2,00,000 /-
RCMC (Registration cum Membership Certificate)

➢ is issued by Export Promotion Council and Commodity Board
➢ valid for 5 years from 1st April of licensing year of its issuance
Status holder Exporter

DGFT grants Status Holder Certificate to reward export performance of the exporter based on
FOB/FOR value of export realized during current + two previous financial years (taken together
and is valid for 5 years)
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Export performance FOB/FOR

Status Category (value in USD Million)
One Star Export House 3
Two Star Export House 15
Three Star Export House 50
Four Star Export House 200
Five Star Export House 800
ITC (HS) CODE:

Indian Trade Clarification (Harmonized System) codes are the codes given to the goods of
import export operation. ITC code are 8 digits codes and are WTO aligned. The ITC (HS) code
facilitates the international trade of goods to be imported in or exported out. ITC (HS) codes
are divided into 2 schemes: --
ITC(HS) Schedule I: -- Describes the rules & guidelines related to import policies,
ITC (HS) Schedule II: -- Describes the rules & guidelines related to export policies, 10915
Free, 443 Restrictive and 55 prohibitive ITC (HS) Codes
IMPORT OF GOODS AND SERVICES
✓ Time limit for Settlement of Import Payments - 6 month from date of shipment
✓ Interest for delayed payments, usance bills or overdue interest is payable only for a
period of up to three years from the date of shipment.
✓ Remittances against import of books may be allowed without restriction as to the time
limit
✓ Extension of time for settlement of import dues up to a period of six months at a time
(maximum up to the period of three years) can be allowed
✓ Wherever extension is granted beyond one year, it should be ensured that the total
outstanding of the importer does not exceed beyond USD 1 Mio or 10% of the average
import remittances made during the preceding two financial years whichever is lower,
Extension should be granted in IDPMS.
✓ Issue of Guarantees by an Authorized Dealer
✓ AD may, give a guarantee up to maximum amount not exceeding USD 500,000
✓ If the service importer is a Public Sector Company or a Department / Undertaking of the
Government of India / State Government, no guarantee for an amount exceeding USD
100,000 or its equivalent shall be issued without the prior approval of the Ministry of
Finance, Government of India.
Advance Remittance for Import

import of goods
➢ Upto USD 200,000 advance remittance for import of goods is allowed without BG
➢ up to USD 5,000,000 - AD banks may frame their own internal guidelines
➢ For Public Sector Company/ GOI /State Government - USD 100,000
➢ for Aircrafts/Helicopters - up to $50 Million without BG
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Import of Services
➢ Without BG up to $500,000.00
➢ For Public Sector Company/ GOI /State Government - USD 100,000
Opinion Reports for Advance remittance for Import

➢ Customers having borrowing arrangements - advance remittance exceeds USD
50,000 – Opinion report needed
➢ Customers not having borrowing arrangements - advance remittance exceeds USD
250,000 – Opinion report needed
Receipt of import documents by the importer directly from overseas suppliers

➢ Where the value of import bill does not exceed USD 300,000.
➢ Import bills received by wholly owned Indian subsidiaries of foreign companies from
their principals.
➢ Import bills received by Status Holder Exporters as defined in the Foreign Trade
Policy, 100% Export Oriented Units / Units in Special Economic Zones, Public Sector
Undertakings and Limited Companies
Evidence of Import
➢ Physical Imports - Bill of Entry within 6 months from date of import
Evidence of Import in Lieu of Bill of Entry -
➢ a certificate from CEO or auditor of the company – less than USD 1,000,000
➢ company listed on a stock exchange in India - net worth is not less than Rs.100 crore
(or) the importer is a public-sector company or an undertaking of the Government of
India
Non-physical Imports
a certificate from a Chartered Accountant
SBI internal guidelines for Bill of Entry
mandatory to mark off all Import Payments in Exim Bills with relevant BoE
Documents evidencing import into India should be preserved by AD for a period of one year
from the date of their verification
EXPORT OF GOODS & SERVICES
➢ Export trade in India is regulated by the Foreign Trade Policy (FTP) in vogue issued by
the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and
Industry, Government of India.
➢ Export proceeds must be realized in full value related to goods / software / services to
India within nine months (09 Months) from the date of export
➢ In case of goods exported to a warehouse established outside India, the export
proceeds should be realized within fifteen months (15 Months) from the date of shipment
of goods
➢ AD may allow extension of the period of realization of export proceeds up to a period of
six months, at a time
➢ While considering extension beyond one year from the date of export, the total
outstanding of the exporter does not exceed USD one million or 10 per cent of the
average export realizations during the preceding three financial years, whichever is
higher.
361
➢ Bank has advised that approval of Branch Head/ Divisional Head not below the rank of
AGM is to be obtained for providing time period extension of export proceed realization.
➢ Prior approval from the Reserve Bank through AD is required for export of machinery,
equipment, etc., on lease, hire basis.
➢ Postal Authorities shall allow export of goods by post only if the original copy of the
EDF has been countersigned by an AD
➢ All software exporters shall file single / bulk SOFTEX form in the form of a statement in
excel format to the competent authority for certification. The exporters shall provide
information about all the invoices including the ones lesser than USD 25000, in the
bulk statement in excel format.
➢ Unsold goods can be gifted up to the value of USD 5000 per exporter, per
exhibition/trade fair
Export of goods / software may be made without furnishing the declaration in the form
of EDF/SB in the following cases
i. Trade samples of goods and publicity material supplied free of payment.
ii. annual limit for normal exporter is 2% of average annual export realization during
preceding 3 licensing years or Rs. 5.00 Lakhs, whichever is more. For status holder
exporter, the annual exemption limit is Rs1 Crore or 2% of average annual realization
during preceding three licensing years whichever is lower
iii. For Gems & Jewellery, Gold, precious metals this exemption is not available
iv. Goods imported free of cost on re-export basis
Direct dispatch of documents by the exporter

a. Advance payment or an irrevocable LC has been received for the full value
b. exporter is a regular customer and the AD is satisfied
c. 'Status Holder Exporters’
d. exporters present documents pertaining to exports after the prescribed period of 21
days from date of export, AD may handle them without prior approval of the Reserve
Bank
Write-off of unrealized export bills

Types of write off Cumulative limit in a year
Self-write-off by an exporter 5%*
(Other than Status Holder Exporter)
Self-write-off by Status Holder Exporters 10%*
Write-off by AD 10%*
*of the total export proceeds realized during the previous calendar year
Approval from Division Head / Branch Head of minimum level of Chief Manager should
be obtained before processing for “Write-off” of unrealized Export bills
Reduction in invoice value on account of prepayment of usance bills: -

AD may allow reduction in invoice value on account of cash discount by Indian exporters to
overseas buyers for prepayment of the usance bills to the extent of amount of proportionate
interest on the unexpired period of usance, calculated at the rate of interest stipulated in the
export contract or at the prime rate/LIBOR of the currency of invoice where rate of interest is
not stipulated in the contract.
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Reduction in invoice value in Change of buyer/consignee
25% reduction in invoice value can be allowed in case of change of buyer and the balance
amount should be realized within 9 months from the date of export. More than 25% reduction
is allowed under certain conditions
➢ Where an exporter receives advance payment (with or without interest), from a buyer
outside India, the exporter has to do the shipment of goods within one year from the
date of receipt of advance payment.
➢ The rate of interest, if any, payable on the advance payment does not exceed London
Inter-Bank Offered Rate (LIBOR) + 100 basis points.
➢ Receipt of advance can be allowed for supply of goods up to 10 years for exporters
having a minimum of three years’ satisfactory track record subject to conditions.
Diamond Dollar Account (DDA)

For Firms/companies dealing in purchase / sale of rough or cut and polished diamonds /
precious metal jewellery plain
track record of at least 2 years
average annual turnover of Rs. 3 crore or above during the preceding three licensing years
maximum five DDAs
sum total of the accruals in the DDA during a calendar month should be converted into
Rupees on or before the last day of the succeeding calendar month after adjusting for
utilization of the balances
Exchange Earners’ Foreign Currency Account (EEFC Account)

(i) A person resident in India may open EEFC Account
(ii) Resident individuals are permitted to include resident close relative(s) as defined in
the Companies Act 2013 as a joint holder(s) in their EEFC bank accounts on former
or survivor basis.
(iii) maintained only in the form of non-interest-bearing current account
(iv) Allowed to credit 100% of their foreign exchange earnings to their EEFC Accounts
(v) The sum total of the accruals in the account during a calendar month should be
converted into Rupees on or before the last day of the succeeding calendar
month after adjusting for utilization of the balances for approved purposes or forward
commitments.
✓ Both the transactions of sale and purchase may be reported separately in R-Returns
and in FETERS.
✓ An exporter is caution listed by RBI based on recommendation of AD bank concerned
depending upon exporters track record with AD and investigating agencies
Electronic Bank Realisation Certificate (e-BRC)

EXCHANGE RATE MECHANISM
➢ Each currency bears three-letter ISO code, e.g. USD, CHF, GBP, EUR, AUD, INR
etc
➢ Exchange rate codes are expressed in 6 letter currency codes represented as
XXX/YYY e.g., USD / CHF, GBP/USD, EUR / USD, USD / INR.
Exchange Rate Quotes

➢ Direct and Indirect Rates ,Buying and Selling Rates
➢ Bid and Ask / Offered Rates , Spot and Forward Rates
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Direct Rates
System of expressing exchange rate of 1 unit of foreign currency in units of home currency
e.g., USD / INR = 79.34 would be a direct exchange rate for the US dollar in India.
Fixed Component – foreign currency
Most currencies are quoted against USD i.e., quoted DIRECT.
Indirect Rates
System of expressing exchange rate of a unit of local currency in units of foreign currency
e.g. EUR / USD = 1.1438 would be the corresponding indirect quotation for the US dollar.
Fixed Component – domestic currency
EUR/USD, GBP/USD, AUD/USD, NZD/USD are quoted in units of US dollars against 1 unit
of home currency i.e., quoted INDIA
Spot and Forward Rates
➢ Cash – When settlement is done on the same day; it is a cash transaction
➢ Tom – When settlement is done on next working day; it is a Tom transaction
➢ Spot – Settlement of funds in foreign market normally takes place after two working
days. Rates quoted are on spot basis.
➢ Forward - When the settlement is done beyond the spot date
For calculation of any exchange rate the maxim of ‘BUY LOW, SELL HIGH’ should be
followed
Latest Publications
UNIFORM CUSTOMS AND PRACTICES OF DOCUMENTARY CREDITS (UCPDC 600
INTERNATIONAL STANDARD BANKING PRACTICE (ISBP 745)
UNIFORM RULES FOR BANK-TO-BANK REIMBURSEMENTS -URR725
UNIFORM RULES OF COLLECTION (URC522)
INCOTERMS 2020
GROUP NOTATION PARTICULARS

E (Departure) EXW Ex works
FCA Free carrier
F (Main carriage Unpaid) FAS Free Alongside Ship
FOB Free On Board
CFR Cost & Freight
CIF Cost, Insurance & Freight
C (Main Carriage Paid)
CPT Carriage Paid To
CIP Carriage & Insurance Paid To
DAP Delivered at Place
D (Arrival) DPU Delivered at Place Unloaded
DDP Delivered Duty Paid
364
❖ Pre and Post shipment Credit
Pre Shipment Finance Post Shipment Finance

Pre Shipment credit or Packing Credit in INR- Post Shipment Rupee Export Credit –
PC PSC
Pre Shipment Export Credit in Foreign Post Shipment Export credit in Foreign
Currency- PCFC Currency – Export Bill Rediscounted
(EBR)
ECGC WT-PC policies and WT-PS policies

TRANSACTION LIFE CYCLE MANAGEMENT (TLM)
➢ Debit entries are to be reconciled on T+1 basis and
➢ All Credits to be reconciled within 5 working days
Export and Import of currency to or from Nepal and Bhutan

Person may-
i. Take or send out of India to Nepal or Bhutan and bring into India from Nepal or Bhutan,
currency notes of Government of India and Reserve Bank of India for any amount in
denominations up to Rs.100 in either case). Further an individual may carry to Nepal or Bhutan
can carry Reserve Bank of India currency notes of denomination above Rs 100/-, i.e. currency
notes of Rs.200/- and/or Rs.500/- subject to a limit of Rs.25,000/-.
ii. Take out of India to Nepal or Bhutan, or bring into India from Nepal or Bhutan, currency notes
being the currency of Nepal or Bhutan
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Resident Foreign Currency (RFC) Account – RFC Account
Account is opened for returning NRIs or PIO to deposit foreign exchange received or acquired
by resident Indian as pension or superannuation benefits or other monetary benefits from his
overseas employer or any income arising or accruing on Assets which are held outside India.
The balances in the RFC account are free repatriable such accounts can be held jointly with
resident relative as joint holder on ‘former or survivor’ basis.
Resident Foreign Currency (Domestic) Account

An RFC (D) accounts is opened on same guidelines as EEFC account. A resident individual
may open an RFC (D) account to deposit the foreign exchange acquired in the form of currency
notes, bank notes and travellers’ cheques etc while on a visit abroad/ unspent foreign exchange
acquired for travel abroad /honorarium or gift while on a visit to any place outside India etc, the
unused foreign currency to be converted into INR on the last day of subsequent month
It can be opened only as Current account and it does not earn any interest
FX – OUT
Any branch including non- Forex branch can send remittances permitted under LRS
USD 25,000
USD, GBP. EUR, AUD, SGD, CAD + 90 Currencies
LRS – USD 2,50,000 /-, (Exceed if Medical, Education, Emigration)
TCS – 5 % for amount exceeds Rs. 7,00,000/-
R- RETURN – Fortnightly – 15th and last day – Within 7 days
Indo – Nepal Remittance

Max Rs. 2,00,000 /- per Remittance,
No restriction on number of remittances in a year,
Non customer as cash : Upto Rs. 50,000 /- , Max 12 remittance in a year
Forex Accounts for Resident Individuals
RFC Account RFC (D) EEFC

Who can open Returning Indian, for Resident Resident in India
minimum of 1 year Individuals
Sources of funds Foreign Inward Forex while visit
remittances, FCNR to place outside
(B) Dep, NRE Deposit India
Type of Account SB, CA, TD CA CA
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NRI ACCOUNTS
NRO NRE FCNR (B)
1 Who can open NRI / PIO NRI / PIO NRI / PIO
2 Currency INR INR All convertible
currencies
3 Sources of funds Local / Foreign Foreign Foreign
4 Accounts SB,CA, RD, TD SB, CA, RD, TD Only TD
5 Min / Max period As per Min 1 year, Min 1 year, Max 5
domestic Max 10 years years
deposit
6 Joint a/c with
Close Relative Permitted Permitted ( F or S) Permitted ( F or S)
Non – Close relative Permitted Permitted Permitted
7 Repatriation Max USD 1 Freely Freely
million per FY
8 Tax Benefit ( TDS) Applicable Exempted Exempted
Loan against NRE / FCNR deposit : No ceiling

Resident Indian can repay the loans availed in Rupees from banks by NRI close relative
INR to other countries – Rs. 100 or lower denomination to Nepal, Butan – No limit
- Above 100 denomination – Rs. 25,000 /- max
All citizens except Pakistan and Bangalasesh can take out upto Rs. 25,000 /- out of the country.
Unspent forex upto USD 2,000 – FC or TC
Balance to be surrendered within 180 days to ADS
CDF – More than USD 5,000 /- (Currency Notes), USD 10,000 ( TC & Currency Notes)
Resident may borrow from close relative outside India – Max USD 2,50,000 /-
Limit on Export of goods on Gift – Max Rs. 5,00,000 /-
NRIs may subscribe to NPS
LRS available resident individuals including minors
IEC Number – 10 digit
Gold Card for Exporters
➢ Account classified as standard, continuously for 3 years
➢ No irregularities / Adverse features
➢ Not block-listed by ECGC / RBI defaulters list
➢ Profit for 3 years
➢ Overdue bills less than 10 % of previous year turnover
➢ Limit sanctioned for 3 years with automatic renewal
➢ Standby limit not less than 20 % additionally available
Deemed exports : Transactions in which the goods do not leave the country – EPZs, SEX,
STPs, EHTPs, etc
Foreign students –
NRO account ( USD 1,000 /- on foreign Remittances and Rs. 50,000 /- on monthly withdrawal
until submission of local address proof)
367
Students going for higher studies abroad are considered as NRIs
Residents can lend to NRIs Rs. 2,00,000 /-
368
FOREIGN EXCHANGE AND INTERNATIONAL BANKING – SET -1

1. FCNRB loans for working Capital will be granted by way of
a) Demand Loan b) Term Loan
c) Overdraft d) Non Fund Based limits
2. FCNRB Term Loans can be sanctioned for a minimum period of……
3. FCNRB Term Loans can be sanctioned for a maximum period of……
4. Fund angle clearance is to be granted by whom?
a) GBU-K b) GMU-K
c) RBI d) GOI
5. Fund angle clearances to be granted for a period of only
6. If an existing borrower having a Rupee Term Loan desires to convert it into an
FCNRBTL, is it permitted.
a) Permitted b) Not permitted
c) Permitted subject to fresh d) Permitted subject to fresh Sanction
sanction/documentation /documentation with RBI approval
7. In how many Designated Currencies can FCNRB(DL) / FCNRB(TL) be availed?
a) Three b) Four
c) Six d) Five
8. FCNRB(DL) / FCNRB(TL) cab be availed in
a) USD, GBP,EURO and YEN b) AUD, USD,EURO and INR
c) CAD, USD,EURO and INR d) USD,AUD,CAD,EURO and YEN
9. Minimum loan amount under FCNRB(DL) / FCNRB(TL)
a) USD 10000 b) USD 20000
c) USD 30000 d) USD 50000
10. Which Bank Guarantee will be issued in lieu of Earnest Money that a bidder has
to deposit
a) Performance Bank Guarantee b) Bid bond Guarantee
c) Financial Guarantee d) Deferred payment Guarantee
11. Which Bank Guarantee is issued to make good of monetary loss in the event of
failure by applicant
a) Financial Bank Guarantee b) Deferred payment Guarantee
c) Performance Bank Guarantee d) Bid bond Guarantee
12. Export Trade is regulated by
a) DGFT b) RBI, FEDAI
c) Govt of India d) All the above
13. All import items are classified into Major categories
a) 2 b) 3
c) 4 d) 5
14. Which of the following is not a correct category of Import / Export

a) Merchandise b) Services
c) Computers d) Project services
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15. Status holders are classified into categories
a) 2 b) 3
c) 4 d) 5
16. Who lays down the ground rules, based on RBI's directions, for the day-to-day
conduct of foreign exchange activity by ADs
a) FEDAI b) ECGC
c) FTP d) RBI
17. Director General of Foreign Trade (DGFT) implements the Foreign Trade Policy
framed by the of Government of India
a) Ministry of Commerce b) Customs Department
c) Reserve Bank of India d) FEDAI

18. Prohibited Goods are the items which
a) Can be exported with b) Can be exported after having valid
Customs license for exports
permission
c) cannot be exported at all d) Can be exported with
DGFT permission
19. Restricted Goods are restricted items that
a) Cannot be exported with permission b) Can be exported with license
c) Can be exported with AD approval d) Can be exported with RBI permission
20. Total number of Diamond Dollar Accounts that can be opened as per FEMA
a) 2 b) 3
c) 5 d) 1
21. Any person resident outside India (not citizen of Pakistan or Bangladesh),
visiting India may take outside India not exceeding Rs
a) Rs 50,000/- b) Above Rs 50,000/-with PAN
c) Rs 25,000/- d) Equivalent of USD 2,50,000/-
22. Softex form should be submitted within days from date of .
a) 21...... date of transmission b) 30 ....... date of transmission
c) 21....... date of last Invoice raised in d) 30 ........date of last Invoice raised in
that month that month
23. Export documents should be submitted to the bank within 21 days from
a) Date of Invoice b) Date of Export
c) Date of Receipt of EDF d) All of the above
24. EPC and PCFC are sources for
a) Export financing b) Import Financing
c) Bill Financing d) LC
25. Remittances against imports should be completed not later than months from
the date of shipment
a) 6 b) 12
c) 18 d) 24
26. UCP 600 became effective on
a) 01.07.2007 b) 01.01.2008
c) 01.01.2000 d) 01.07.2015
27. Inco Terms are Issued by

a) International Chamber of commerce b) World Trade Organisation
c) World Bank d) International Monetary fund
28. The documentary evidence for import transaction is
a) ED Form b) Bill of Entry
c) GR Form d) SOFTEX form
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29. The period up to which Interest is to be collected on a usance export bill
a) Notional Transit Period b) Usance Plus NTP
c) Usance period d) 30 days
30. The software application used to report FX Transactions to Treasury
a) Bancs – 24 b) EXIM Bills
c) Mercury – FX d) SFMS
31. Contraventions under FEMA are
a) Civil in nature b) criminal in nature
c) Has both characteristics of civil and d) Both Civil and criminal
criminal
32. ECGC stands for
a) Export Cooperation b) Export Credit Guarantee Corporation
Government corporation of India
c) Export Cash Guarantee Company d) Exchange credit Guarantee
corporation
33. To receive Foreign Contribution, Charitable educational institutions are
required to register themselves with
a) RBI b) Ministry of Finance
c) Ministry of Home Affairs d) Local Collectorate
34. Inward remittances in favour of Charitable Institutions are governed by
a) FEMA b) FCRA
c) IT Act d) Banking Regulation Act
35. FCRA stands for
a) Foreign Credit Regulation Act b) Foreign Contribution Regulation Act
c) Foreign Commission Receiving Act d) Foreign Credit Receiving Act
36. Indo-Nepal Remittance for non customers (individuals) can be permitted under
NEFT upto
a) INR RS 1,00,000/- b) INR Rs 50,000/-
c) INR Rs 2,00,000/- d) INR Rs 2,50,000/-
37. ECB stands for
a) Exchange Credit Bureau b) External Commercial Borrowings
c) External credit Bureau d) External Credit Borrowings
38. ECB can be raised in which foreign currency
a) Only in USD b) Only in INR
c) freely convertible foreign currency d) Freely convertible foreign currency
and Indian Rupees
39. Exports proceeds to be realised within a period of
a) 6 months from date of shipment b) 9 months from date of shipment
c) 12 months from date of shipment d) 15 months from date of shipment
40. EEFC account can be maintained in the following manner
a) Savings Ac b) FCNR
c) Current Ac d) NRE Ac
41. Most popular risk management tool available to customers who have Foreign
Exchange Exposure is
a) Constant vigil b) Forward Rate Agreement
c) Forward Contract d) Currency Futures
42. SWIFT implemented in India in the year
a) 1990 b) 1991
c) 1992 d) 1994
43. DGFT full form
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a) Directorate General of Foreign Trade b) Director General of Foreign Trade
c) Directorate General of Foreign Tax d) Director General of Foreign Taxes
44. Import transactions can be cross verified by using
a) ICEGATE b) ICEGRID
c) ICECAT d) ICECUBE
45. Delivery of FC will be happened in case of spot transactions
a) On the Same Day b) On the next day before 12pm
c) On the next day d) On the second day
46. OFAC full form is
a) Office of Foreign Assets Centre b) Office of Foreign Assets Country
c) Organization of Foreign Assets d) Office of Foreign Assets Control
Centre
47. Which one of the following is not a type of LC
a) Confirmed LC b) Non confirmed LC
c) Revolving LC d) Transferable LC
48. In LC, risk of non payment shifted to
a) Importer b) Bank
c) Company d) All the above
49. Letter of Credit transactions are governed by
a) UCPDC b) DGFT
c) RBI d) Customs
50. What is the full form of FOB
a) Freight off board b) Freight on board
c) Free on board d) Free off board
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS A C A B C C B A D B
Q 11 12 13 14 15 16 17 18 19 20
ANS C D C C D A A C B C
Q 21 22 23 24 25 26 27 28 29 30
ANS C D B A A A A B C C
Q 31 32 33 34 35 36 37 38 39 40
ANS A B C B B B B D B C
Q 41 42 43 44 45 46 47 48 49 50
ANS C C A A D D B B A C
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FOREIGN EXCHANGE & NRI BUSINESS – SET 2
1 UCPDC means
a) Uniform code and practices for b) Uniform Customs and Practices for
Documentary Credit Documentary credits
c) Uniform practices for documentary d) Uniform Code and Procedures for
credit Documentary Credits
2 UCPDC-600 have been revised by
a) Bank of International Settlement b) World Bank and IMF
c) International chamber of d) United Nations Organisation
Commerce, Paris
3 LORO Account normally refers to
a) Our Account with You b) Your Account with us
c) Somebody’s account with us d) Their Account with you
4 Packing Credit can be allowed in excess of the Export value, in which of
the following circumstances
a) Where by-product can be exported b) Where partial domestic sale is
involved
c) Export of de-oiled/defatted cakes d) Any of the above.
5 An LC provides for allowing pre-shipment credit to the beneficiary. It is
called
a) Confirmed LC b) Irrevocable LC
c) Back to back LC d) Red clause LC
6 Foreign Exchange rates in India are determined by
a) Finance Ministry b) RBI
c) FEDAI d) Market forces of demand/supply
7 Who regulates the foreign trade in India
a) RBI b) DGFT
c) FEDAI d) SEBI
8 Foreign Currency Non-Resident (Banks) account can be opened in the
name of the following
a) Non-resident Indian b) Person of Indian origin
c) Overseas Corporate Bodies d) Both a and b
9 Drawal of foreign Exchange by a person in India is not permitted in respect
of which of the following
a) Transactions with persons resident b) Travel to Nepal and Bhutan
in Nepal and Bhutan
c) Transactions given in Schedule 1 of d) All the above
FEMA
10 Which of the following methods is applied for quoting the foreign exchange
rates in India?
a) Cross rates b) Direct rate
c) Indirect rate d) Buying rate
11 Overseas corporate bodies mean
a) 50% by NRIs and balance by b) 60% by NRIs irrespective of
resident Indians balance holdings
c) 70% by NRI d) 60% by NRIs and balance by
Government
12 Under, UCPDC-600, the term “Middle” of a month shall be construed as
373
a) Second week of the month b) Third week of the month
c) 11th to 20th day of the month d) 5th to 15th day of the month
13 As per the article 5 of the UCPDC-600, Banks deals with
a) Goods and service b) Performance of the contract
c) documents d) none of the above
14 Under NRO Account, the repatriation can be done up to
a) USD 10000 b) USD 100000
c) USD 1 million d) No limit
15 An exporter is categorised as a Star Export House, if the export performance
/ turnover in at least 2 out of 4 years is around
a) Rs.20 Crore b) Rs. 500 Crores
c) Rs.100 Crores d) Rs. 2500 Crores
16 The Outstanding Export bills are to be reported to RBI at:
a) Half yearly intervals at June and b) Half yearly intervals at March and
December September
c) Quarterly intervals at the end of the d) Fortnightly basis on 15th and last
quarter day of the month
17 An EEFC account will be opened as
a) Savings Bank account b) Current Account
c) Fixed Deposit account d) Any one of the above
18 Under Whole-turnover packing Credit policy covered with ECGC i.e., ECIB-
WTPC, the percentage
a) 75% up to Grade percentage limit b) 55% to 75% depending on the
Claim percentage
c) 90% of the limit d) 65% of the limit
19 The importer has to use Form A1, if the import payment exceeds
a) USD 500000 or its equivalent b) USD 100000 or its equivalent
c) USD 50000 or its equivalent d) USD 5000 or its equivalent
20 The time limit for settlement of usance import payment for capital goods is:
a) Maximum 6 months from the date b) Maximum 12 months from the date
of shipment of shipmen
c) Maximum up to the period less than d) Maximum 6 months from the date
3 year of documents
21 AD banks may approve trade credits per import transaction up to
a) USD 1 Million b) USD 10 million
c) USD 20 million d) USD 1 billion
22 The PCFC will be available for the maximum period of
c) 180 days or working capital cycle d) 360 days or working capital cycle
whichever is less whichever is less
23 If all the terms and conditions are given on the bill of lading document
itself is called as
a) Clean bill of lading b) Long form bill of lading
c) Short form bill of lading d) Straight bill of lading
24 The bill of lading that covers the entire voyage covering several modes of
transport are called as
a) Straight bill of lading b) Chartered party bill of lading
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c) Through Bill of lading d) Claused Bill of lading
25 Any Bill of lading is safe for negotiation purposes if

a) It acknowledges that the goods b) no superimposed clause or notation
have been put on board of the that expressly declares the
shipment defective condition of the goods
c) It is an acknowledgement that the d) Both a and b
goods have been received by the
ship owners for shipment
26 In case of usance bills, the Normal Transit period (NTP) as prescribed by
FEDAI is
27 The exporter should necessarily submit the export documents to the
bank within
a) 15 days from the date of the b) 15 days from the date of shipment
documents
c) 21 days from the date of the d) 21 days from the date of shipment
documents
28 When the seller place the goods at the side of the ship at named port and
also clear the goods for Export, which incoterms will be used :
a) FCA- Free Carrier b) FOB – Free on Board
c) FAS – Free Alongside Ship d) DAP – Delivery at Place
29 INCOTERMS issued by ICC, Paris is called as
a) Indian company terms b) International Commercial Terms
c) International Contract terms d) None of the above
30 Balance of Trade means
a) Net position of capital account b) Current account balance
c) Imports less exports d) Exports less imports
31 A contract which affords adequate protection to an exporter or an importer
against exchange risk is
a) Hedging b) Guarantee
c) Letter of Credit d) Forward Contract
32 The Balance in hand at the close of the day is
a) Short position b) Long position
c) Overnight position d) Day light position
33 The banks which may purchase or sell foreign currency in different markets
to take advantages of the rate differentials is called
a) Hedging b) Guarantee
c) Arbitrage d) Cover deal
34 A person does a transaction with Spot value on 8th January 2016(Friday),
then the settlement will be done on
a) 9th January, 2016 b) 11th January, 2016
c) 12th January, 2016 d) On the same day
35 Which of the following can remit up to USD 250000, under RBI’s Liberalised
Remittance scheme
a) All resident individuals b) Resident companies
c) All NRIs d) Resident partnership firms
36 The visits by a resident Indian to which of the following countries are not
eligible for obtaining foreign exchange under forex facilities to residents
375
a) All SAARC countries b) Pakistan and Bangladesh
c) Iraq and Libya d) Nepal and Bhutan
37 bill of entry to be retained upto _______
a) 1 year from date of submission b) 1 year from date of import

c) 1 year from date of audit/Inspection d) None
38 General permission is available to any resident individual to surrender
received / realised /unspent forex with in a period of
c) 180 days d) No time limit
39 Any resident Indian can hold Indian rupees during their travel abroad up to
a) Rs.7500 b) Rs. 10,000 /-
c) Rs. 25,000 /- d) No limit
40 What is the maximum amount of remittance that AD banks can make for
import payment where documents are directly received by importers
a) USD 25000 b) USD 100000
c) USD 200000 d) USD 300000
41 An exporter received advance against export supply can accept the
advance and pay maximum interest rate of:
a) MCLR b) MCLR + 100 bps
c) LIBOR d) SOFR + 100 bps
42 Under, UCPDC-600, the documents must be presented by or on behalf of the
beneficiary for payment, not later than ___________ after the date of
shipment, but in any event not later than the expiry date of the credit
a) 21 banking days b) 21 business days
c) 21 working days d) 21 calendar days
43 Under, UCPDC-600, if the expiry date of a credit or the last day for
presentation falls on a day when the bank to which presentation is to be made
is closed, the expiry date or the last day for presentation, as the case may be
a) Will be the first preceding banking b) Will be the first following day
day
c) Will be the next following business d) Will be the first preceding business
day day
44 Which of the following is NOT a capital account transaction?

a) Investment in foreign securities b) Transfer of immovable property
outside India
c) Export and import in to India d) Raising foreign currency loans in
India and abroad
45 The foreign exchange can be released as Currency notes / Coins up to
a) USD 3000 b) USD 5000 or its equivalent in case of
Iraq and Libya
c) No ceiling in case of Iran, Russian d) All the Above
Federation, and other republics of
commonwealth of independent
countries
46 In case of direct quotation of rate, which is true
a) Foreign Currency is variable b) Foreign currency is static
c) Indian currency is static d) None of the above
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47 Which is false in case of forex remittances under Liberalised Remittance
Scheme:
a) Remittance for any purpose b) Remittances made to Bhutan,
specifically prohibited under Nepal, Mauritius or Pakistan
Schedule-1 of FEMA
c) Remittances can be made by any d) It is mandatory to have PAN
Resident Corporate, Partnership number to make remittances
firms, HUFs, Trusts etc.
48 While quoting the rates, the banks take into account the time factor i.e how
much is going to be taken to get the purchased currency credited to the
NOSTRO account abroad. This date is known as
a) Cash date b) Spot date
c) Forward date d) Value date
49 FCNR(B) deposits can be opened as Term deposit for the period:
a) Minimum 15 days, Maximum 10 b) Minimum 1 year, Maximum 5 years
years
c) Minimum 1 year 1 day, Maximum d) Minimum 1 year, Maximum 10
2 years years
50 The NRE/ NRO accounts can be opened by NRI/PIO as a joint account with
close relatives who are resident Indian under _____________ condition
a) Either or Survivor b) Jointly
c) Former or Survivor d) No conditions apply
FOREIGN EXCHANGE & NRI BUSINESS – SET 2 - ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS B C D D D D B D D B
Q 11 12 13 14 15 16 17 18 19 20
ANS B C C C C A B C D C
Q 21 22 23 24 25 26 27 28 29 30
ANS C D B C D C D C B D
Q 31 32 33 34 35 36 37 38 39 40
ANS D C C C A D C C C D
Q 41 42 43 44 45 46 47 48 49 50
ANS D D B C D B C D B C
377
FOREX / NRI BUSINSESS – SET – 3
1 Which is true in NRO account
a) Any person who are resident can b) Any person resident in Nepal and
open the account Bhutan can open
c) Additional preferential interest rate d) No restriction in repatriation of funds
for staff deposits not available from NRO accounts
2 Resident Foreign Currency (Domestic) account can be opened as
a) Only Current account b) Only Current account
c) Term deposits only d) SB/CA and Term deposits
3 SIBOR means
a) Symbolic inter-bank offered rate b) Srilanka Inter-bank Offered rate
c) Singapore Inter-bank offered rate d) Systematic Inter-bank offered rate
4 The rate that Indian banks and other derivative market participants use as a
benchmark for setting prices on forward rate agreements and interest rate
derivatives
a) Secured overnight Financing Rate b) London Inter-bank offered rate
(SOFR) (LIBOR)
c) Mumbai Inter-bank Forward d) Euro Inter-bank offered rate
Offered rate [MIFOR] [EURIBOR]
5 Under, UCPDC – 600, the words “about” or “approx” used in connection with the
amount of LC or quantity of goods, or price per unit, the LC are to be construed
as allowing a tolerance not to exceed___________ the amount, quantity, or price
to which they refer:
a) 15% more or 15% less than b) 10% more or 10% less than
c) 5% more or 5%less than d) 2% more or 2% less than
6 Under UCPDC-600, a bank assumes no responsibility for consequences arising
out of the interruption of its business by the Acts of God, riots, civil commotions,
insurrections, wars, acts of terrorism, or by any strikes or lockouts or causes
beyond its control. This is called as:
a) Disclaimer b) Force majeure
c) Modus operandi d) Exclusion of liability
7 Which of the following is most preferred LC for an exporter
a) Revocable b) Irrevocable and red clause
c) Irrevocable, confirmed and without d) Confirmed and standby
recourse
8 LC issued in lieu of bank guarantee, is called
a) Red clause LC b) Green Clause LC
c) Standby LC d) Revolving LC
9 Transferable Letter of credits can be transferred
a) Any number of times b) Only once
c) 2 times d) 5 times
10 The statutory authority which administers the Exchange Control in India
a) Ministry of commerce b) DGFT
c) FEDAI d) RBI
11 In foreign Exchange transaction, which of the following is the basic buying rate
a) Bills Buying rate b) TT Buying rate
c) FC buying rate d) Direct rate
12 Under UCPDC-600, branches of same bank in different countries are
a) Same bank b) Different bank
c) Associate bank d) Subsidiary bank
378
13 In respect of sale or purchase of foreign exchange, the following principal would
be followed in direct rate
a) Buy high b) Sell low
c) Buy low, sell high d) Buy high, sell low
14 Mr. Rajiv, a resident of Bangalore, had shifted to USA for employment and settled
there itself. While in USA, he married a USA girl, Sharapova, What is the status of
Sharapova
a) An Indian Resident b) Foreigner
c) A person of Indian origin d) Non-resident Indian
15 R-Return refers to returns concerning_________:
a) ALM Position b) CRR maintenance position
c) NPA/SWL position d) Foreign Exchange transactions
16 IF the contraventions of any direction given by RBI under FEMA or to file a
return as per the Act, RBI can impose additional fine that may extend up to:
a) Rs.100 per day b) Rs.200 per day
c) Rs.500 per day d) Rs.2000 per day
17 An exporter gets a letter of credit for export of garments to US but the expiry date of
the credit falls on 15th August, which is a public holiday in India. In such
circumstances, the documents for negotiation can be submitted to the negotiating
bank on
a) Succeeding working day b) Succeeding banking day
c) Preceding business day d) Preceding banking day
18 The forward sale of purchase of foreign currency to reduce the exchange risk
exposure connected with the assets or liabilities denominated in Foreign currency is
called
a) Hedging b) Squaring
c) Brokering d) Spreading
19 What is the maximum amount that can be deposited in EEFC account
a) 25% of the exchange earned b) 50% of the exchange earned
c) 75% of the exchange earned d) 100% of the exchange earned
20 The gap between the buying rate and selling rate of a currency is called:
a) Bid-ask spread b) Dealer’s margin
c) Dealer’s spread d) Exchange margin
21 When a dealer purchases more of a currency and is unable to dispose off it,
the bank is exposed to:
a) Loss b) Exchange risk
c) Oversold position d) Dealing risk
22 A nominated bank or issuing bank shall each have a maximum of __________
following the day of presentation to determine if the documents are in order
a) 2 banking days b) 5 working days
c) 5 banking days d) 15 banking days
23 The bank which undertakes the responsibility of payment by the issuing
bank and on his failure to pay is called
a) Negotiating bank b) Confirming bank
c) Reimbursing bank d) Advising bank
24 Any LC which permits the advances for storage of goods in a warehouse in
addition to pre-shipment advance is called as:
a) Back to back LC b) Standby LC
c) Green Clause LC d) Red clause LC
25 Any LC is the one that can be cancelled or amended at any time without giving
379
prior notice to the knowledge of the beneficiary is called
a) Red Clause LC b) Stand by LC
c) Revocable LC d) Irrevocable LC
26 Maximum forex outward remittance under LRS
a) USD 10000 b) USD 15000
c) USD 250000 d) USD 100000
27 Any Resident individuals with actual forex exposures are allowed to book
forward contracts upto ______________ on declaration, subject to certain
conditions
a) USD 10000 b) USD 100000
c) USD 200000 d) USD 300000
28 In case of Foreign Currency Non- Resident (Banks ) account, the ceiling of
Interest rate for the term deposits of 3 to 5 years are
a) SOFR + 50 bps b) SOFR + 200 BPS
c) SOFR + 400 bps d) No limit at all
29 Whenever the NRI visits India on his temporary visit, can render Foreign
currency to his accounts exceeding __________ has to submit Currency
declaration form.
a) USD 3000 b) USD 5000
c) USD 10000 d) USD 25000
30 Any forex remittances with relates to Cultural tour as per the Schedule II of
FEMA should obtain permission from which ministry for release of forex:
a) Ministry of finance b) Ministry of HRD
c) Ministry of surface transport d) Ministry of Information and
Broadcasting
31 Which of the following is true with regard to borrowings in Foreign Currency
from Close relatives outside India.
a) The borrowing sum not to exceed b) Minimum maturity period of the loan is
USD 250000 or its equivalent from one year
his close relatives outside India
c) Loan is free of interest. Amount of d) All of the above
loan is received by inward
remittance in free forex through
normal banking channels or by
debit to NRE/FCNR account of a
non-resident lender
32 A person resident in India is allowed to retain foreign currency notes up to an
amount of ________ or its equivalent
a) No limit b) USD 2000
c) USD 5000 d) USD 10000
33 Currency declaration form is a declaration given to custom authorities while
entering India by any person if
a) Aggregate value of Foreign b) Aggregate Value of Foreign Currency
exchange in the form of Currency notes exceeds USD 5000 or its
notes, TCs, exceeds USD 10000 or equivalent
equivalent
c) Both a and b d) None of the above
380
34 SOFR is
a) Structured overnight Finance Rate b) Secured Overnight Financing Rate
c) Staggered Overnight Finance Rate d) Standard Overnight Financing Rate
35 In an export business, if the aggregate FOB value during the current and
Previous 3 years exceeds Rs.7500 Crores, then the export enjoys the facility of:
a) Export house b) Star Export house
c) Premium Export house d) Trading house
36 The AD banks and Status holder exporters can write off the unrealized Export
bills up to
a) 5% of the unrealized export bills b) 10% of the outstanding export dues
c) 10% of the unrealized export bills d) No write off is permitted
37 The Authorised Dealers should crystalise the overdue export bills from foreign
currency liability to Rupee liability by applying
a) Bill selling rate b) TT selling rate
c) FC selling rate d) TT buying rate
38 In a letter of credit, by adding a confirmation, the confirming bank undertakes
the responsibility similar to that of
a) Negotiating bank b) Advising bank
c) Issuing bank d) Both b and c
39 LIBOR is replaced with
a) SOFR (Secured Overnight b) SIBOR

Financing Rate)
c) EURIBOR d) MIBOR
40 Which of the form does not match its purpose
a) ETX- Seeking extension in b) XOS - Statement of exports bills
realisation of bills from RBI outstanding more than 6 months
c) PCX- Opening of Foreign Currency d) BEF – Application for payment of
accounts with a bank in India or import payment
abroad by Exporters
41 Custom office returns to the exporter, which copy of the export declaration
form
a) Trade control copy b) Currency control copy
c) Exchange control copy d) Foreign control copy
42 Advance remittance can be allowed by AD banks, against import of aircraft /
helicopter/ other aviation related purchases can be allowed without bank
guarantee for an amount up to
a) USD one million b) USD five million
c) USD ten million d) USD 50 million
43 A foreign national on 3 months visit to India wants to open a bank account
a)He cannot be allowed to open any b) He can open any type of account that
account he need.
c) He can open an NRE account d) He can open a NRO account
44 Under, UCPDC-600, if the provisions of LC and the UCDPC are contradictory
a) Provision of UCPDC would prevail b) Provisions of LC would prevail over
over the provisions of LC the provisions of UCPDC
c) Provisions favourable to the d) Provisions favourable to the applicant
beneficiary would prevail would prevail
45 Shipment date in a letter of credit is stipulated as “in the beginning of the
month”. The expression means that the shipment can take place during
381
a) 1st week of the month b) 1st three days of the month
c) 1st ten days of the month d) None of the above
46 What is the software used for accounting Metal Gold Loan details
a) MetaGrid b) MGLFX
c) Metavan d) MetaFX
47 Suppliers Credit and Buyers Credit are a part of
a) Pre Shipment Credit facilities b) Post Shipment Credit facilities
c) Finance extended by Indian Banks d) Finance extended by Foreign Banks
48 IDPMS stands for
a) Input data processing and b) Important data processing and
monitoring system monitoring system
c) In-sufficient data processing and d) Import data processing and monitoring
monitoring system system
49 AD category-1 Banks can Write off to the extent of percentage of invoice
value in eligible cases of Import Bills.
a) 2.00% b) 3.00%
c) 4.00% d) 5.00%
50 TCS applicable in LRS for remittances above Rs. ____ in a year
a) Rs. 1,00,000 /- b) Rs. 3,00,000 /-
c) Rs. 5,00,000/- d) Rs. 7,00,000 /-
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS C A C C B B C C B D
Q 11 12 13 14 15 16 17 18 19 20
ANS B B C C D D B A D A
Q 21 22 23 24 25 26 27 28 29 30
ANS B C B C C C D C B B
Q 31 32 33 34 35 36 37 38 39 40
ANS D B C B C C B C A C
Q 41 42 43 44 45 46 47 48 49 50
ANS C D D B C A D D D D
382
MCQ – NRI BUSINESS
1 An NRI, after spending 15 years abroad, on returning to India for

permanent settlement will have the status of
a) Resident Indian (RI) b) Non-Resident Indian (NRI)
c) Resident but Not Ordinarily d) None of the above
Resident (RNOR)
2 While opening NRE / NRO savings bank or current account, following
documents should be obtained from the applicant
a) Completed copy of NRI account b) Proof of Status, Identity and Tax
opening application Residency (if taxation details
declared) and Current & Permanent
address proofs
c) Additional document as mentioned d) All of the above
in account opening application (Not
required if NRI applicant is visiting
SBI branch in India in person to
open the account)
3 Continuous Discharge Certificate (CDC) relates to which class of NRIs
a) Professionals b) Entrepreneurs
c) Sea Farers d) Pilots flying aircrafts in foreign
countries
4 For Risk categorization, NRIs, including PIO/OCIs, are classified as _
a) High Risk customers b) Medium Risk customers
c) NRIs residing in or migrating to d) Low Risk Customers
specified ‘High Risk’ countries will
be marked as ‘High Risk’
customers. Those in other than
‘High Risk’ countries will be marked
as ‘Low Risk’ customers if their
occupation do not fall under some
specific categories like Legal
profession, CA/ICWA, etc.,
otherwise ‘Medium Risk’
Customers.
5 Foreign Nationals opening Student, Tourist or domestic rupee account will
be categorized as____________Risk customers
a) Low b) Medium
c) High d) Highest
6 SB account for NRIs can be opened under which type of the following Account
types
a) Foreign Currency Non- b) Resident Foreign Currency Account
Resident (Bank) {FCNR(B)} (RFC)
c) FCNB Premium d) Non-Resident External (NRE)
7 Forward Contract is related to which type of the following NRI accounts
a) Foreign Currency Non-Resident b) Non-Resident External (NRE)
(Bank) {FCNR(B)}
c) Resident Foreign Currency d) FCNB Premium Account
Account (RFC)
8 Which of the following NRIs cannot open account
383
a) Physically challenged NRI b) Minors in sole name
c) Foreign National having d) Foreign National married to an
grandparents of Indian citizens Indian spouse
9 Which of the following accounts an NRI cannot open/maintain:
a) NRE-STD b) NRE-SB
c) Resident Foreign Currency account d) Resident SB Account
10 TDS is applicable on Interest from which of the following NRI accounts:
a) NRE-STD b) NRE-SB
c) FCNB Accounts d) NRO-STD
11 The highest rate of TDS is applicable under which of the following accounts:
a) Domestic STD b) NRE-STD
c) NRO-STD d) FCNB
12 Demand Loan/Overdraft against which of the following NRI deposit is
not permissible:
a) RFC b) NRE-STD
c) NRO-STD d) FCNB
13 An NRI customer who wants to make a Rupee deposit for One year but very
likely to do a premature closure before one year prefers to earn at least
some interest even if pre-closed before one year. Which deposit product can
be suggested:
a) NRE-STD b) NRO-STD
c) NRE-STD d) FCNR (B)
14 For NRIs holding NRO accounts jointly with Resident Indians, the mandate
should be
a) Former or Survivor b) Either or Survivor
c) Both Jointly d) Joint accounts with Resident
Indians are not permitted for NRIs
15 FCNR(B) deposits cannot be opened in which of the following currencies
a) Japanese Yen b) Australian Dollar
c) Chinese Yuan d) Canadian Dollar
16 Resident Foreign Currency (RFC) deposit is not permitted to be opened in
which of the following currencies
a) USD b) Euro
c) GBP d) Canadian Dollar
17 Min. & Max. tenor for Resident Foreign Currency (RFC) deposit is
a) 1 & 5 years b) 1 & 10 years
c) 1 & 3 years d) 7 days to 10 years
18 Which of the following is not a permissible credit to an NRE-SB account
a) Proceeds of FC Notes b) Local credits
c) Inward remittance from abroad d) Transfers from other NRE accounts
19 Transfer of funds from NRO accounts to NRE accounts of an NRI is
permissible within _________________limit in a Fin. Year subject to
payment of taxes
a) USD 1 Million b) USD 0.50 Million
c) USD 2 Million d) Freely transferable without limits
provided the funds are not
repatriated
20 Which of the following is a not a permissible investment by an NRI
a) Mutual Funds b) Life Insurance Policies
c) Commercial Properties d) Agricultural land for the betterment
384
of the surrounding villages
21 What is the maximum permissible limit for repatriation of funds in NRE
deposits?
a) USD 1 Million b) USD 0.75 Million
c) USD 2 Million d) Freely repatriable without any limit
22 Penalty for premature withdrawal for NRE Term Deposits upto & above Rs.
5.00 lacs is ____% and _____% after completion of one year
a) 0.25% & 0.50% b) 0.50% & 1.00%
c) 1.00% & 0.50% d) 0.50% & 0.50%
23 Penalty for premature withdrawal for NRE Term Deposits upto & above Rs.
5.00 lacs is ____% and _____% before completion of one year
a) 0.25% & 0.50% b) 0.50% & 1.00%
c) 1.00% & 0.50% d) No Interest is payable
24 Joint accounts of NRIs along with ‘Relatives’ are permitted to be opened on

_________ basis
a) Not permitted b) Either or Survivor
c) Former or Survivor d) Both or Survivor
25 Joint accounts of NRIs along with ‘Relatives’ are permitted to be opened. The
term ‘Relatives’ is as defined in _________________
a) Sec 6 of Income Tax Act b) Sec 2 (77) of Indian Companies Act
2013
c) Sec 19 of Indian Partnership Act, d) Sec 2 (w) of FEMA 1999
1932
26 Which of the following Resident Indian relatives of an NRI is not permitted
for opening a Joint Account with the NRI
a) Step Brother b) Father
c) Wife d) Father-in-law
27 Which of the following Resident Indian relatives of an NRI is permitted for
opening a Joint Account with the NRI
a) Grandson b) Grand daughter
c) Son’s wife d) Grand Father
28 Which of the following deposits/accounts has the highest TDS on Interest?
a) Special Term Deposit b) Recurring Deposit
c) NRE SB Account d) NRO SB Account
29 Which of the following deposits is immune to Exchange Rate fluctuations
a) NRE STD b) NRO STD
c) FCNB Premium d) FCNR (B)
30 In which of the following deposits, Banks absorb the Exchange Rate risk
a) NRE STD b) NRO STD

c) FCNR (B) d) All of the above
31 Which of the following best defines the status Resident but Not Ordinarily
Resident (RNOR)
a) A person who was non- b) person‘s stay in India during the 7
resident for at least 9 out of 10 previous year prior to the previous
previous years prior to the previous year under consideration was 729
385
year under consideration days or less
c) Either of the above d) Neither of the above
32 Resident but Not Ordinarily Resident (RNOR) status can be enjoyed upto
______ years
a) One b) Three
c) Five d) Till he/she becomes NRI again
33 Can Joint A/c is permitted in NRE a/c with resident Indian
a) Yes. With F or S mode b) No. The request cannot be
considered.
c) Yes. With E or S mode d) Yes. Only with the approval of RBI
34 For opening accounts for individuals of Bangladesh, in addition to the KYC
documents for NRIs, which of the following is required:
a) Valid Work Permit b) Valid Visa
c) a valid residential permit issued by d) Cannot open accounts for
Foreigner Registration Office (FRO) individuals of Bangladesh
/ Foreigner Regional Registration
Office (FRRO) concerned
35 For opening accounts for entities of Bangladesh, prior approval to be obtained
from
a) Ministry of External Affairs, Govt. of b) RBI
India
c) Finance Ministry and Ministry of d) Cannot open accounts for entities of
External Affairs, Govt. of India Bangladesh
36 FCNB Premium account combines the benefits of:
a) FCNR(B) Deposits with Forward b) FCNB Deposits with Options
Contract Contract
c) FCNB Deposits with Higher d) Higher Interest rates applicable to
Interest rates applicable to Domestic deposits along with
Domestic deposits Exchange risk protection
37 FCNB Premium deposit will be placed in which of the following currencies:
a) USD, GBP, EUR b) USD, GBP, EUR, JPY
c) USD, GBP, EUR, JPY, CAD or d) USD only
AUD
38 For FCNB Premium deposit, the Forward contract can be booked for final
return in ______currency/ies
a) INR, GBP, EUR, JPY, CAD or AUD b) GBP, EUR, JPY, CAD or AUD
c) GBP, EUR, JPY, CAD or AUD d) GBP or EUR
39 In case of cancellation of Forward Contract by the depositor of FCNB Premium
deposit
a) Permitted with the Bank absorbing b) No such cancellation is permitted
the cancellation charges
c) cancellation charges and exchange d) Cancellation charges, Exchange
loss if any, has to borne by the loss, if any and FCNB pre-closure
depositor at prevailing rate. penalty to be borne by the depositor
40 Foreign Tourists who have come to India on a short visit, can open
_______Accounts
a) NRE b) NRO-SB account
c) Foreign Tourist NRO Current d) Not permitted to open accounts in
Account India
386
41 What is the maximum period Foreign Tourists can maintain their accounts
a) 6 months b) 1 year
c) 2 years d) 6 months which can be extended for
a further period of 6 months if the
tourist Visa is extended for such
time period
42 Foreign students who visit India for the purpose of studies are permitted to
open which of the following accounts:
a) NRO-SB accounts b) NRO-CA
c) Foreign Tourist NRO-SB accounts d) Foreign Tourist NRO-CA accounts
43 Resident Foreign Currency Accounts can be opened in _______currency/ies
a) USD, GBP, EUR b) USD, GBP, EUR, CAD & SGD
c) USD, GBP, EUR, AUD & CAD d) USD, GBP, EUR, AUD, CAD &
SGD
44 RFC accounts can be opened for a minimum of ___to maximum of ___years
a) 1 & 5 b) 1 & 3
c) 3&5 d) 1 & 10
45 Foreign nationals on employment in India are permitted to open
______accounts.
a) NRO b) NRE
c) FCNR(B) d) Domestic Resident accounts
46 NRIs are permitted to open Domestic Resident Accounts as Joint Accounts
with a Resident Indian as the primary/first applicant on which of the following
mandates
a) Former or Survivor b) Both or Survivor
c) Either or Survivor d) Not permitted to open such
accounts
47 Foreign students opening the account, should within _________days submit
a valid proof of address giving local address
48 Accounts opened for Foreign students, pending submission of Proof of
Address, the restrictions imposed in the account are:
a) Foreign remittance not exceeding b) Foreign remittance not exceeding
USD 1,000 and cap of monthly USD 2,000 and cap of monthly
withdrawal of Rs. 50,000 withdrawal of Rs. 50,000
c) Foreign remittance not exceeding d) Foreign remittance not exceeding
USD 1,000 and cap of monthly USD 5,000 and cap of monthly
withdrawal of Rs. 1,00,000 withdrawal of Rs. 25,000
49 Minimum amount of deposit under FCNB(B) Premium
a) USD 20000 b) No Minimum

c) USD 100000 d) USD 10000
50 Power of Attorney of NRIs are not permitted to do which of the following
activities on behalf of NRIs
a) To repatriate outside India b) to apply for any of the Banks
funds to third parties Anytime Channels i.e. INB, ATM etc.
c) to transfer funds from the account to d) All the above
another NRE / NRO SB/Current
account on behalf of the account
holder
387
ANSWER KEY
1 2 3 4 5 6 7 8 9 10
ANS C D C C C D D B D D
Q 11 12 13 14 15 16 17 18 19 20
ANS C A B A C D C B A D
Q 21 22 23 24 25 26 27 28 29 30
ANS D B D C B A C D C C
Q 31 32 33 34 35 36 37 38 39 40
ANS C B A C B A D A C C
Q 41 42 43 44 45 46 47 48 49 50
ANS D A A B D C B A D D
Back to Index page
388
Deceased Settlement
Nomination & Deceased Claim Settlement
Nomination SOP : NPG/PBU-LIAB/ 9/2020-21 dated 29.07.2020
➢ The Banking Regulation Act 1949 was amended in 1984 and Sec. 45ZA to 45ZF was
added to the Act for providing nomination facility in the banks.
➢ Start of nomination facility in banks since 1985.
➢ Where the style of account is changed or some addition/deletion in the name of
depositors is made, the nomination stands cancelled.
➢ Only Thumb-impression(s) shall be attested by two witnesses.
➢ If a term deposit with nomination facility, is renewed with the same name(s) the existing
nomination will continue. A fresh nomination need not be obtained.
➢ Nomination facility is available for joint deposit accounts also with or without "Either or
Survivor" mandate. However, all account holders can nominate to only one single
individual
➢ In the case of a deposit made in the name of minor, the nomination shall be made by the
person lawfully entitled to act on behalf of the minor
➢ Where the nominee is a minor, the depositor/ all the depositors, may, while making the
nomination, appoint other individual not being a minor, to receive the amount of the deposit
on behalf of the nominee in the event of the death of the depositor/depositors during the
minority of the nominee.
➢ Joint account holders for Safe Deposit Lockers – Nomination is available only in case of
joint operation. one or more than one person can be appointed if locker is in joint name.
➢ Nomination facility is also not available in case of joint operations in safe custody and
safe deposit of articles either jointly operated or in any survivor mode.
➢ Only Principal can nominate in an account
➢ PPF and SCSS accounts, more than one person can be nominated with declaring of
percentage share for each nominee
➢ As per the recent guidelines, PPF, SCSS accounts can be settled on the basis on legal
heir certificate and no need to obtain legal representation
➢ In locker account where no nomination is registered, should be settled only with legal
representation.
Various forms used for nomination

Deposits Safe custody Lockers
Registration of Nomination DA - 1 SC - 1 SL-1 ( Sole hirer)
SL-1A (Joint hirer)
Cancellation of Nomination DA - 2 SC - 2 SL-2
Modification of Nomination DA - 3 SC - 3 SL-3
Deceased claim settlement

Circular NBG /PBU/LIMA – 15/2019-20 dated 30.09.2019
The Application Form for Settlement of Claims in Deceased Constituent Accounts has been
uploaded on SBI Times under the following path
389
Departments 2 - Personal Banking Business Unit – Liabilities – LIMA - Other Forms and
Documents - Deceased Claim Form (New)
• Death Certificate should be registered in Branch Sundry Documents Register
• Death Certificate issued by– Registrar of Births & Deaths/Local sarpanch duly
countersigned by Tahsildar
• Person missing for more than 7 years is presumed dead under section 107 & 108 of the
Indian Evidence Act.
• In case the claims up to a threshold limit of Rs.1,00,000/- (Rs One Lac only) in respect of
missing persons reported missing for a minimum period of one year, shall be settled on
production of FIR, Non-traceable report issued by the police authorities, Indemnity from
the claimant(s).The AGM of the respective region will be the authorized authority to settle
such claims.
• The claims in respect of missing person above Rs 100000/--should be settled after getting
order from the competent court.
• The assets left with the bank by deceased Army, Air force, Naval personnel can be disposed
without the production of legal representation irrespective of the amount as per the following
Acts:
a. Army and Air force - Disposal to be done in accordance with the provision of the Army and
Air Force (Disposal of private property) Act, 1950.
b. Navy - Disposal to be done in accordance with Navy Act, 1957 under section 171, 172 and
174 Disposal of assets (ornaments) to constituents who are under imprisonment
• Disposal of assets (ornaments) to constituents who are under imprisonment – besides
obtaining letter of indemnity and other verifications, the borrower should give a clear
authority in favour of third person, and the authority should be identified by the Jail
Superintendent.
• In jointly operated accounts, the balance to be paid jointly to the survivor(s) and the legal
heirs of the deceased
• Revised Claim Form w.e.f. 01/10/2019
• Legal heir certificate is not mandatory to settle the claim.
• AFFIDAVIT - COS 539 duly stamped and sworn by two respectable persons, not related
to the deceased, or to the claimants and not having any interest in the claim, before a
Notary public.
• CODICIL - amendment or a supplementary will adding to the contents of the earlier will.
• EXECUTOR - The person named in the will for giving effect to its provisions.
• LETTER OF INDEMNITY (COS 540) - To be executed duly stamped by the claimant(s)
jointly with sureties
• LETTER OF DISCLAIMER – Stamped and to be notarized.
• The surety(ies) should be persons other than those who have sworn the Affidavit.
• Surety of relatives can be accepted provided they are not directly involved as claimants
Payment of Interest- TD
• In the event of death of a depositor before the maturity of deposit the Bank shall pay
interest at the rate applicable for the run period without any penalty if payment is sought
by the surviving joint holder(s)/legal heir(s)/ nominee
• Interest may be paid on a deposit standing in the name of a deceased depositor for the
overdue period from the date of maturity of the deposit to the date on which the deposit is
actually paid to the legal heir(s) of the deceased depositor, the rate at which such interest
is paid being the lower of the under rates:
1. The rate mentioned in the original receipt / advice
2. The rate applicable on the date of maturity for a fresh deposit for the overdue period.
390
Payment of Cheques
Individual Accounts No. Even if the Cheques are dated prior to death of
the customer.
Partnership Accounts Cheques drawn on an account where one of the
partners is deceased cannot be paid. Fresh account
may be opened with the remaining partners with fresh
documents and operations allowed in that account. A
Confirmation of Balance certificate is to be obtained
from the remaining partners as on the date of the
freezing of the operations in the account consequent
on the death of one of the partners.
Hindu Undivided Family If the Karta dies, the operations in the account should
Account be stopped.
Club, Association and Trust Cheques issued before the death of the office bearer
Accounts / Trustee can be paid, although subsequent
operations should be stopped.
Ltd company Cheques issued before the death of the Authorised
Signatory can be paid and fresh mandate to be
obtained.
Documents Required
Settlement amount Documents required
Up to Rs. 5 lacs 1. Claim Form (Application + Declaration)
2. Letter of Disclaimer
3. Indemnity by Claimants (no surety)
Above Rs. 5 Lacs 1. Claim Form (Application + Declaration)
2. Letter of Disclaimer
3. Indemnity by Claimants
4. Affidavit
5. Surety (one or two sufficient for the claim amount)
Discretionary Powers
(Ref Circular No.: CDO/ORG-DFP/3/2021 – 22 Date: Fri 24 Sep 2021)
Scale Deposits Other Assets Refund of Excess cash
Asstt. Manager (JMGS-I) 3,00,000 1,00,000 3,000
Dy. Manager (MMGS-II) 6,00,000 3,00,000 5,000
Manager (MMGS-III) 10,00,000 6,00,000 10,000
Chief Manager (SMGS- 20,00,000 10,00,000 25,000
IV)
AGM Full 15,00,000 Full
DGM Full full Full

Succession Certificate: -
➢ It is a legal representation, granted only in respect of debts and securities and when the
person has dies intestate.
➢ It does not cover gold loan ornaments, articles in safe custody and safe deposit lockers.
➢ It is valid throughout India even if granted by a District Court
Wills and Probate

➢ Probate is a certified copy of the WILL granted by a “Competent Court”.
391
➢ A Will does not require to be compulsorily probated in all the states of India
➢ A court issued probate is valid. A copy of the Will is always attached to the Probate
➢ It applies to both movable and immovable properties
➢ A Will is compulsorily required to be attested by two attesting witnesses who are not
beneficiaries under the Will.
➢ A Probate issued by a High Court is valid throughout India.
➢ Probate issued by the District Court is valid within the State.
Letter of Administration (LOA): -

➢ It is issued by a court in favour of an Administrator (i) when the deceased has not left a
will or (ii) when the deceased has left a will but has not named an executor, or (iii) the
executor named therein refuses to act or he himself is dead.
➢ A letter of administration covers not only debts due to the deceased and transferable
securities but also all kinds of movable and immovable properties.
➢ It is valid throughout India if issued by a High court.
➢ If it is issued by a District Court, it is valid within the state.
➢ However, if the value of the property outside the state does not exceed Rs.10,000/ even
a letter of administration issued by a District Court is valid throughout the Country.
➢ It is applicable in respect of delivery of pledged gold ornaments or contents of the safe
deposit locker to the legal heirs of the deceased
Primary heirs of Hindu

Male Female
➢ Wife, Son(s), Daughter(s) (married / un-married), ➢ Husband,
Mother, ➢ Son(s),
➢ Son/Daughter of a Predeceased son, (if any), ➢ Daughter(s),
➢ Son/Daughter of a Predeceased daughter, (if ➢ Son / Daughter of
any), a Predeceased
➢ Wife of a Predeceased son, (if any), son/daughter
➢ Son/Daughter of a Predeceased son of a Pre-
deceased son, (if any)
➢ Widow of a Predeceased son of a Pre-deceased
son, (if any)
Primary heirs of Muslim / Christian
Muslim Christian
Male Female Male Female
Wife/Wives, Son(s), Husband, Wife, Husband,
Daughter(s), Son(s), Son(s), Son(s),
Father, Daughter(s) Daughter(s) Daughter(s)
Mother (All are entitled to (All are entitled to
equal share) equal share)
392
MCQ on Nomination / Deceased settlement

1 Type of guardian not recognized in court of law for settlement of death claim
a) natural guardian b) person appointed by natural guardian
c) court appointed guardian d) Minors
2 Thump Impression on Nomination form is to be attested by
a) one witness b) Two witness
c) Not required d) Nominee
3 Locker- in the joint names of A and B with joint operation. A given nomination
if favour of X. A dies. To whom it should be settled?
a) to B and nominee X jointly b) to nominee only
c) to be settled to B only d) None of the above
4 Nomination facility is available for
a) Proprietorship b) Firms
c) Clubs d) Trusts
5 What is the status of nominee
a) he is only guardian for legal heirs b) he is only trustee for legal heirs
c) he is not related to the legal heirs d) None of the above
6 In case of sole hirer of a locker, nomination shall be made in favour of only one
individual. True or False?
a) True b) False
7 The settlement of claims by the branch shall be applicable only in case of
domestic deposit accounts of the missing person held in individual capacity
and up to a limit of _______ with the approval of controller.
a) Rs. 1,00,000 /- b) Rs. 50,000 /-
c) Rs. 2,00,000 /- d) Rs. 5,00,000 /-
8 Death claims with Locker without nomination can be settled under the Powers
of
a) Branch Manager b) As per delegation of power applicable
to deceased settlement
c) Regional Manager d) None of these
9 For break open of Locker permission to be obtained from_________.
a) Regional Manager b) Branch Manager ( Scale IV & above)
c) DGM d) Service Manager
10 Saving account with balance of Rs 7,45,000 and Term deposit of Rs 1,40,000/- both
having nomination can be settled under
a) Branch Power b) Sent to RBO for approval
c) As per delegation of power d) DGM
applicable to deceased
settlement
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS b b a a b a a b a a
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393
CUSTOMER GRIEVENCES / BCSBI / CUSTOMER SERVICE

COMMITTEES
BANKING CODES AND STANDARDS BOARD OF INDIA
(BCSBI)
THE CUSTOMER RIGHTS
➢ Right to Fair Treatment
➢ Right to Transparency, Fair and Honest Dealing
➢ Right to Suitability
➢ Right to Privacy
➢ Right to Grievance Redressal and Compensation
✓ Advance notice of at least 30 days for discontinuation of particular products,

Relocation of their offices, Changes in working hours, Change in telephone numbers,
Closure of any office or branch
✓ Any change in terms and conditions should be informed at least one month prior to
the revised terms and conditions becoming effective
✓ If the bank has made any change without giving such notice which is favorable to
the customer, it will notify the change within 30 days of such change.
✓ If the change is adverse to the customer, prior notice of minimum 30 days will be
provided and the customer may be provided options, to close the account or switch
to any other eligible account without having to pay the revised charge or interest
within 60 days of such notice;
GRIEVANCE REDRESSAL
Centralised Public Grievance Redress and Monitoring System (CPGRAMS)

CPGRAMS is a portal maintained by DARPG (Department of Administrative Reforms and Public
Grievance)
Project Dhruva – Revamped SBI Contact Center
Contact Centre toll free numbers

1800 1234 ,1800 2100 ( Rolled out in Aug 2022)
800 8900 (to be rolled out in future)
Locations -At 4 center (Bangalore, Vadodara, Agra, Kolkata)

Vendor -Teleperformance
394
Apart from the above numbers, there are other toll-free numbers available for helping in
customer issues relating to specific areas or for regulatory requirements, as under:
Sl No Toll Free Number Description

1 1800 1111 09 Unauthorised Transaction Helpline
2 1800 1100 01 PMJDY Helpline
3 1800 1100 18 FASTAG Helpline
4 1800 1120 18 Dedicated Home Loans Helpline
5 1800 1111 01 SBI YONO Helpline
6 1800 1100 09 Pension Helpline
7 1800 1120 17 GST Helpline
8 1800 1111 03 PSB/DSB Helpline
9 1800 4259 760 ITRO Helpline
Complaint Management Portal (https://cms.onlinesbi.com/CMS is a 24x7 web portal

where customers can raise complaints
ESCALATION MATRIX
Day of lodging / escalation Time available for

redressal (max 3 weeks)
Branch 1st day 10 days
LHO 11th day 5 days
Corporate 16th day 6 days
Centre
Public Action
Complain to the organization, Complain to a third party
(e.g. Ombudsman , Take legal action for redressal e.g. Consumer Protection Courts)
Private Action
Switch the banker, Negative word of mouth publicity
395
CUSTOMER SERVICE – MCQs

1 The duty of Grahak Mitra is to
a Greet and Guide the customers b Help customers in opening a/cs
c Help in ATM cards/Internet d All of the above
banking mobilization
2 Customer day is celebrated on of every month?
a th b Last day of the month
5
c 10th &20th d
26th
3 A complaint received from the customer needs to be redressed within
Days
a 10 b 5
c 6 d 21
4 Customer Relations Programme is held at branches at intervals.
a Monthly b Quarterly
c Half-yearly d Yearly
5 Which of the following is the New Toll-free number acquired by our Bank
for Contact Centre ?
a 1800- 1234 b 1800- 1000
c 1800- 1800 d 1800- 1111
6 Expand TAT
a Time After Time b Turn Around Time
c Things After Turn d None of these
7 Expand BCSBI
a Banking Copy and sub - b Banking Codes and Standards
Standards Board of India Board of India
c Banking Core and Standards d None of the above
Board of India
8 BCSBI is
a Government Body b Constitutional Body
c An independent and d All of the above
autonomous Institution
9 BCSBI is registered as
a Society b Company
c Firm d None of the above
10 The compensation for any loss suffered by the complainant is limited to the
amount arising directly out of the act or omission of the bank or Rs. ,
whichever is lower.
a 10 lacs b 15 lacs
c 20 lacs d None of the above
11 The Banking Ombudsman may award compensation not exceeding Rs.
to the complainant for mental agony and harassment.
a 25,000/- b 20 lacs
c 5 lacs d 1 lac
396
12 Preventive Vigilance Committee have to formed in Branches having a

staff strength of or more.
a 5 b 10
c 15 d 20
13 Preventive Vigilance Committee meetings to be held once in every
.
a Month b Bi-month
c Quarter d Year
14 Customer Service Committees at Branch Level shall be held once a
.
a Week b Month
c Quarter d Year
15 Indicator boards at all the counters should be displayed in ?
a English b Hindi
c Regional Language d All the above
KEY to Customer Service-MCQs
1 D 2 C 3 D 4 B 5 A
6 B 7 B 8 C 9 A 10 C
11 D 12 B 13 C 14 B 15 D
Back to Index page
397
OMBUDSMAN SCHEME - OBJECTIVE QUESTION
Q:1 Under which clause of the Banking Ombudsman Scheme 2006, is the Banking
Ombudsman appointed by the RBI?
1. Clause 10 2. Clause 7 3. Clause 12 4. Clause 8
Q:2 The Banking Ombudsman charges ____________ fee for filing and resolving customers'
complaints.
1. No Fee 2. Rs. 30 lakhs 3. Rs. 10 lakhs 4. Rs. 25 lakhs
Q:3 An amendment was made in Banking Ombudsman Scheme 2006 on _______.
1. June 12, 2010 2. July 3, 2015 3. July 1, 2017 4. May 26, 2012
Q:4 If someone is not satisfied with the decision of the Banking Ombudsman then an option
is provided to appeal to the Appellate Authority within a period of _______ from the date of
receipt of award money.
1. 15 days 2. 30 days 3. 90 days 4. 60 days
Q:5 The Banking Ombudsman may award compensation not exceeding ______ to the
customer for mental agony and harassment.
1. Rs. 5 Lakh 2. Rs. 3 Lakh 3. Rs. 1 Lakh 4. Rs. 9 Lakh
Q:6 Which of the following banks are covered by Banking Ombudsman Scheme?
A. Scheduled Commercial Banks B. Scheduled Primary Co-operative banks
C. Rural Regulation Bank D. Non-Banking Financial Company
1. A,B 2. B,C 3. C,D 4. A,B,C, D
Q:7 Under which clause of the Banking Ombudsman Scheme 2006 all grounds of complaints
are mentioned?
1. Clause 2 2. Clause 6 3. Clause 8 4. Clause 10
Q:8 Appointment of Banking Ombudsman is done for a period not more than _______.
1. 1 year 2. 2 years 3. 3 years 4. 4 years
Q:9 When Banking Ombudsman Scheme was came into force?
1. 1947 2. 1969 3. 1950 4. 1995
Q:10 Which of the following schemes were merged into a single scheme with the name
Integrated Ombudsman Scheme?
A. Integrated Ombudsman scheme B. Banking Ombudsman scheme
C. Ombudsman scheme D. Ombudsman Scheme for Non-Banking Financial Companies E.
Ombudsman Scheme for Digital Transactions
1. A,B,C 2. B,C,D 3. C,D,E 4. B,D,E
Answer Key
Let's check out your score in this test.
1. (4) 2. (1) 3. (3) 4. (2) 5. (3)
6. (4) 7. (3) 8. (3) 9. (4) 10. (4)
398
NPA Management
1 The Legal expenses incurred by Bank in respect of suit filed accounts to be debited to
a) P& L account b) Customer account
c) Loan account d) Need not be paid
2 A bank who has purchased NPA from another bank can resell the same after
holding the same in its books for ______months from the date of NPA
a) 9 moths b) 12 moths
c) 36 moths d) Cannot sell as it is already NPA
3 Banks /FI should submit the list of suit-filed accounts of Willful defaulters of Rs
____ as at endo march, June, September and December every year to Credit
information Bureau (India) ltd. (CIBIL) and submit the quarterly list of willful
defaulters where suits
a) 25 lakhs and above b) 1 lakh and above
c) 1 crore and above d)
4 In which of the following Assets provisioning is not required
a) Standard Assets b) Sub-Standard Assets
c) Doubtful Assets d) None of the above
5 Consortium accounts will be classified as NPA based on
a) the individual bank’s recovery b) The liability of the account
c) The capital of the customer d) The no of directors of the company
6 Wilfull defaulters will not be allowed to float any new ventures for a period of
7 A possession notice has been issued under ___________ and no response from
the borrower even after 60 days – Bank can proceed for possession of security /
take possession of management / sell the security
a) Banking Regulation Act b) SARFAESI ACT
c) The Reserve Bank Act d) DRT ACT
8 Any aggrieved person by an order of DRT in an application filed by the borrower under
SARFAESI act, can prefer appeal by paying fee in DRAT by depositing by____
a) 50% of the dues. DRAT can reduce b) 60% of the dues. DRAT can reduce it to
it to 25% 30
c) 20% of the dues. DRAT can d) 50% of the dues. DRAT can reduce it to
reduce it to 10% 10%
9 To obtain minimum 2 independent valuation reports from 2 panel valuers in
respect of loan accounts where the value of property obtained is
a) Rs. 1 Cr and above b) Rs.10 Cr and above
c) Rs. 50 lakhs and above d) Rs. 5 Cr and above
10 Provision on Doubtful Asset s more than 3 years old
a) 15% of the Book liability b) 25% of the Book liability
c) 75% of the Book Liability d) 100% of the Book Liability
11 We have to submit to RBI the list of Wilful Defaulters of R s._______ and above, List of
Defaulters with liability of R s._________ and above. Out of the above, Suit Filed accounts
details being submitted to CIBIL
a) Rs.25 lakhs, Rs.1 crore b) Rs.5 lakhs, Rs.5 crore
c) Rs.2 lakhs, Rs.5crore d) Rs 1 Crore and above
12 Bank has sanctioned loan for a purpose, but the party has taken out the amount
out of business which resulted in deterioration of business. This is called as
399
a) willful default b) diversion of funds
c) siphoning off d) write off
13 Advantages of Lok Adalat
a) No advocate fee b) No court fee
c) No appeal as the decree is consent d) All the above
decree
14 When an account has become NPA, interest debited earlier and non-recovered
should be:
a) Reversed as provision b) Reversed as URI
c) Capitalised with principle amount d) No action needed
15 Working capital advance not renewed, when it will become NPA –
c) 270 days d) 1 year subject to approval
16 If stock statements not submitted for more than ---- months and the irregular
drawings are permitted in the account for a continuous period of --- days then
the account becomes NPA (out of order accounts)
a) 3 months, 90 days b) 1 months, 30 days
c) 6 months, 90 days d) 6 months, 180 days
17 Fraud of 3 crore should be reported to ______
a) CBI economic offences wing b) Police compliant only
c) RBI d) Zonal office
18 SARFAESI cannot be initiated in accounts with less than ____ of principal due
a) 25 % b) 20 %
c) 10 % d) 50 %
19 When the security in the account is less than 10% it is directly classified as
a) Loss b) Doubtful
c) Sub standard d) None of the above
20 What is the minimum claim amount to be eligible for filing case in DRT
a) Rs. 20 lakhs b) Rs. 10 lakhs
c) Rs. 1 Crore d) Any amount as decided by the bank’s board
21 CIBIL has categorized the credit information under certain groups. Which of the
following are they?
a) Consumer Accounts- Borrowal b) Commercial Accounts- Borrowal
accounts in the name of Individuals accounts of other than Individual
c) Both A&B d) None of these
22 Loan granted for short duration crops will be NPA if overdue for –
a) 2 crop seasons b) 1 year
c) 90 days d) 2 crop seasons to maximum of 1 year
23 Loan treated doubtful After _______of becoming NPA
a) 90 days b) 6 months
24 LOK ADALAT can handle cases up to

a) Rs. 20 lakhs b) Rs. 50 lakhs
c) Rs. 1 Cr d) No limit
25 Agencies which purchase NPA from Banks are called

a) Asset Reconstruction Company b) Asset purchase company
c) NBFC d) None of the above
400
ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS a b a d a c b a a d
Q 11 12 13 14 15 16 17 18 19 20
ANS a c d b b a a b a a
Q 21 22 23 24 25
ANS c a c a a
401
MCQs on NPA Management & Sourcing
1 Which of the following statements is most appropriate in respect of NPA
Management?
a) Poor processing is the prime b) The seed of NPA is sown in improper
cause of accounts becoming Sourcing of proposals
NPAs.
c) Not following up RG-3 accounts d) Not following up RG43 accounts is the
is the prime cause of accounts prime cause of accounts becoming
becoming NPAs. NPAs.
2 SARFAESI Act is not applicable to Accounts where amount due is less than:
a) 1 lac b) 2 lacs
c) 3 lacs d) 5 lacs
3 Demand notice u/s 13(2) shall be issued by Authorised Officer in writing to the
Borrower(s)/ Guarantor(s)/Mortgagor(s) and legal heir(s) if applicable, giving
the time of _____ days to discharge the liabilities.
a) 30 b) 60
c) 45 d) 90
4 ‘Authorized officer’ means an officer not less than a _______ of a public-sector
bank or equivalent, for the purpose of SARFAESI action.
a) Chief Manager b) Assistant General Manager
c) Deputy General Manager d) General Manager
5 Bank has to issue notice through paper publication within_____ days after
taking the possession of the asset under SARFAESI Act, 2002.
a) 30 b) 60
c) 7 d) 5
6 Notice issued under Section 13(2) of SARFAESI Act is issued against ______
property.
a) Mortgaged property b) Hypothecated property
c) Both mortgaged and d) None of the above
hypothecated properties
7 In how many days the borrower can file an application against the action taken
by the bank under Section 13(4) SARFAESI Act 2002 for taking the possession
of the secured asset:
8 As per RBI Classification SMA is a category between ……..
a) Sub-standard & Doubtful b) Standard & Sub-Standard
c) Doubtful-1 & Doubtful-2 d) Doubtful & Loss
9 As per RBI Classification SMA-2 is a category where……..
a) Principal or interest payment b) Principal or interest payment overdue
overdue between 31-60 days between 61-90 days
c) Principal or interest payment d) Principal or interest payment overdue
not overdue less than 30 days between 91-180 days
but account showing signs of
incipient stress
10 Which of the options is not considered as early warning signal for stressed asset
management?
a) Failure of SIs / ECS b) Bouncing of cheques
c) Death of the borrower or key d) Opening savings account in another
member of the family Bank
402
11 Interest on advances against Term Deposits, NSCs, IVPs, KVPs and Life
Insurance policies may be taken to income account on the due date, provided
a) Adequate margin is available b) Interest debited in a quarter is covered
in the accounts by credit during that quarter
c) It is paid on cash or cash- d) It has accrued
equivalent
12 The ‘unsecured exposures’ which are identified as ‘substandard’ would attract
additional provision of ___percent.
a) 10 b) 15
c) 20 d) 25
13 Appropriation of recoveries in NPAs (i.e. towards principal or interest due), as
per the Bank’s extant instructions is done in accordance with following
priority.
a) Principal, Charges, Unrealized b) Unrealized Interest, Principal, Charges,
Interest, Interest Interest
c) Principal, Interest, Unrealized d) Charges, Unrealized Interest, Interest,
Interest, Charges Principal
14 In Standard Asset category, direct advances to Commercial Real Estate (CRE)
sectors attract a provision of ….
a) 0.25 % b) 0.40 %
c) 0.75 % d) 1.00 %
15 Cash Credit account will become an NPA if the limit is not renewed within
a) 90 days from due date b) 180 days from due date
c) 270 days from due date d) None of the above
16 NPA tracking in CBS happens
a) Daily b) Weekly
c) Fortnightly d) Monthly
17 An account shall be classified as doubtful asset if the value of the security is
eroded by ….% of the outstandings.
a) 25 b) 40
c) 50 d) 90
18 Quick Mortality Loans are the loans fall in to the category of
a) Having Shortest Moratorium b) Advances, where either the borrower or
Period guarantor dies even before full
disbursement of loan.
c) Accounts d) None of these
sanctioned/disbursed and
where repayment has been
initiated during the financial
year and slipped into NPA
category within the first two
years of sanction/ repayment
19 Bank has introduced arrear condition ________ w.e.f. 10.03.2020 to identify
and mark the account NPA, when outstanding and accrued interest on loan
exceeds principal and interest accrued on Time Deposit, held as security
a) 901 b) 902
c) 903 d) 999
20 Bank has introduced arrear condition ______ w.e.f. 06.07.2020 to identify and
mark the account NPA, when outstanding and accrued interest on loan
exceeds the underlying security value of the insurance policy held as security.
a) 901 b) 902
403
c) 903 d) 999
21 You are the Branch Manager of MMGS-II Branch. Competent Authorities have
approved filing of civil suit and transferring the outstanding to Recalled Assets
Account, however empaneled Advocate requests you to permit him to file the
case in Civil Court after 5 months as he is going abroad for some personal
work. Which course of action will you take?
a) To identify another advocate b) To identify another advocate for filing of
for filing of suit in court within suit in court within 3 months from the
1 month from the date of date of approval from controller.
approval from controller.
c) To identify another advocate d) To wait for the advocate till he return
for filing of suit in court within back to India after his vacation.
2 months from the date of
approval from controller.
22 Your Field Officer is in a confused state of mind regarding type of recovery
measures whether Soft or Hard Recovery Measure to be initiated by a Branch
when loan account becomes NPA. Which of the following is a hard recovery
measure?
a) Reminders b) Tele calling
c) SARFAESI d) Compromise
23 A Centralized Loan Collection System (LCS) has been introduced by our Bank
to automate the process of following up of delinquent customers for
collection and recovery of due amount in segment loans.
a) AGR segment b) PER Segment
c) SIB segment d) C&I segment
24 Through Centralized Loan Collection System (LCS), follow-up can be made for
…………types of accounts.
a) Delinquent customers including b) RG-3 accounts
written off and AUCA accounts
c) SMA 2 Accounts d) SME 3 accounts
25 Which of the following is the benefit of settling Bank's dues under Compromise
Offer? (Select most suitable answer)
a) Recycling of funds to the Bank b) Economic Development of the nation
c) Eco-socio development of the d) Incentive to the Branch Officials for
nation recovery in NPA accounts.
26 As per the Standard Operating Procedure on Settlement of Bank's Dues
through Compromise, an initial deposit of at least ……% of offer amount is
obtained from the Borrower as an evidence of his intention to pursue the
compromise settlement with the Bank.
a) 10% b) 5%
c) 15% d) 20%
27 For calculation of NPV, the maximum estimated time to realize the securities
may be taken as ------- years from the date of notice under section 13(2) in case
of SARFAESI action.
a) 5 b) 7
28 For calculation of NPV, the maximum estimated time to realize the securities
may be taken as ------- years from the date of notice under section 13(2) in case
of DRT/Civil Court action.
a) 3 b) 5
404
29 The valuation report should be less than ------ months old for fixing of
reserve price under SARFEASI Act
a) 12 b) 24
c) 36 d) 48
30 In case of Compromise Settlement for arriving at the compromise amount for
cases where the value of security is Rs. 1 cr and above, two valuation reports
from Bank's approved valuers have to be obtained and the ......... value has to
be taken into account for deciding the compromise amount
a) Higher b) Lower
c) Average d) None of the above
31 An award made by the Lok Adalat is deemed to be a
a) Decree of a Sessions court b) Decree of a civil court
c) Decree of a criminal court d) Decreee of a Special Court
32 In case of sanction of compromise proposal, repayment period shall not be
extended beyond a period of 18 months without obtaining administrative
approval from an official not below the rank of----------------------.
a) CGM b) GM
c) DMD d) Not required to obtain
33 Branches can participate in Lok Adalats to be organised by Civil Courts
involving an amount up to Rs…………………….
c) Irrespective of loan amount d) Rs.20.00 lacs
34 Monetary ceiling of cases in Lok Adalats to be organised by DRTs/DRATs
a) Rs.5 lacs b) No limit for DRTS/DRATS
35 In case of a loan that has been settled in Lok Adalat The compromise amount
may be agreed to be paid in monthly/quarterly instalments or depending on
the income generation of the defendant. However, such repayments should be
made within a period not exceeding a total period of ...... months.
a) 12 b) 24
c) 36 d) 48
36 You are the Chief Manager of the RACPC in a Metro Centre, your Maintenance
Officer requests to guide him regarding how many notices are required to
be sent to the borrower (Other than Guarantor) before effecting the sale of
the Car?
a) 6 notices b) 3 notices
c) 2 notices d) 1 notice is sufficient
37 Who is the authorized officer for seizure of vehicles under Loan agreement,
a) Sanctioning authority of any b) Sanctioning authority of IV and Above
scale
c) CM (CRO) at RBO d) RM of the region
38 For seizure under SARFAESI act, what is the amount due
a) NO Minimum amount b) The amount due should not be less than
15% of principal plus interest
c) The amount due should not be d) The amount due should not be less than
less than 20% of principal plus 10% of principal plus interest
interest
39 What is the notice period prescribed for seizure of vehicle under SARFAESI
act
a) Minimum 30 days of notice for b) Minimum 60 days of notice for seizure
seizure and Minimum 60 and Minimum 30 days notice for
days notice for intended sale intended sale
405
c) Minimum 45 days of notice for d) Minimum 60 days of notice for seizure
seizure and Minimum 30 days and Minimum 45 days notice for
notice for intended sale intended sale
40 Your Credit Officer has come to you for doubt clarification. He wants to know
what is the amount to be deposited by the Borrower with the Appellate Tribunal
when Borrower has decided to file an Appeal with DRAT?
a) 25% b) 75%
c) 50% d) 10%
41 All existing AUCAs of Rs. lacs and above in NBG have to be migrated to
SARG.
42 Accounts with outstanding of Rs……..shall be migrated to SAMB
a) 10 crores b) 20 lacs
c) 10 lacs d) All Stressed Assets of SMA-2 and worst
irrespective of outstanding
43 Defaulter Borrower(s) with outstanding of -----------will be declared as Willful
Defaulters in terms of the definition of Willful Default prescribed by RBI
a) Above Rs. 25.00 lacs b) Rs.25 lac and above
c) Above Rs. 50.00 lacs d) Rs.50 lac and above
44 Can a Branch consider the Compromise Offer given by the Willful Defaulter?
(Select most correct answer)
a) Yes b) No
c) Yes, subject to Administrative d) No, as RBI has prohibited the Banks
Clearance from Competent from accepting the Compromise Offers
Authorities from Willful Defaulters.
45 What is the threshold default (amount) which can trigger an IBC Process in
respect of a Corporate entity?
a) Rs. 1.00 Lac b) Rs.1.00 Crore

c) Rs.50.00 Lacs d) Rs.50.00 Crore
46 Under IBC who has given power to makes regulations to be adopted by
Insolvency Professional?
a) Insolvency and Bankruptcy b) National Company Law Tribunal
Board of India
c) Ministry of Corporate Affairs d) Governing Board of the Insolvency
Professional Agency
47 Full form of OCAS
a) Online Customer Acquisition b) Online Customer Acquisition Solution
System
c) Online Consumer Acquisition d) Online Consumer Acquisition Solution
System
48 Which of the following is not an external sourcing entity
a) ALC b) ELC
c) BST d) SSL
49 The role of HLC limited to
a) KYC Verification b) Sourcing
c) Pre-Sanction Survey d) Post Sanction Survey
50 Which of the following is not the member in tripartite partnership with our Bank
a) Deal4Loans b) PaisaBazaar.com
c) LoanBazaar.com d) Bank-bazaar.com
406
ANSWERS TO MCQs-NPA Management & Sourcing
1 B 2 A 3 B 4 A 5 C
6 C 7 A 8 B 9 B 10 D
11 A 12 A 13 D 14 D 15 B
16 A 17 C 18 C 19 B 20 C
21 B 22 C 23 B 24 A 25 A
26 A 27 A 28 C 29 A 30 A
31 B 32 A 33 D 34 B 35 C
36 B 37 A 38 C 39 B 40 C
41 C 42 A 43 B 44 C 45 B
46 A 47 B 48 C 49 B 50 C
NPA Management
1. What are the Bank's instructions with respect to 'Initial Deposit' received with the compromise
offer letter from the borrower?
A It should be immediately credited to loan account on receipt.
B It should be held in a no-lien account on receipt.
C It can be appropriated in the borrower's account if the compromise offer as proposed by the
borrower is approved by competent authority.
D Both 2 & 3 are correct.
2. ARCs came into existence with

A DRT formation in 1993
B IBC’2016
C SARFAESI 2002
D It was there prior to 1993
3. Reserve price for sale to ARC are approved by
A Respective vertical heads
B SARCC-II
C By the controllers
D None of the above
4. We can sell assets to ARCs only after classifying as NPA
A True
B False
C May not be guessed
D Not known
5. What is the cut-off outstanding prescribed by RBI beyond which all defaulting accounts have to
be examined for wilful default?
A Rs.25 lacs and above
B Above Rs.25 lacs
C Rs.50 lacs and above
D Rs.5 crore and above
6. SMA -0 is applicable in case of
A Term loans and Cash Credits
B Overdrafts
C Term Loans only
D Cash Credits only
407
7. A notice under Section 13(2) of SARFAESI Act may be given in which of the following cases?
A After account is classified as NPA.
B The remaining dues exceed 15% of principal plus interest accrued thereon.
C If the dues exceed Rs. 1 lac.
D Both 1 & 3 are correct.
408
 Photographs of only those borrowers, including proprietors / partners / directors/ guarantors

of borrower firms / companies, will be published, who have been declared as wilful
defaulters and total outstanding in the accounts is Rs. 3.00 crores and above
Substandard Upto 1 year 15% of the outstanding
(Secured) from the date
of NPA
Substandard Upto 1 year 25% (Other than infrastructure loans)

(Unsecured ab- from the date of 20% (Infrastructure loans)
initio) NPA
Doubtful-I 2nd year from 25% for Secured portion &
(upto 1 year) the date of NPA 100% for Unsecured portion
Doubtful-II 3rd & 4th year 40% for Secured portion &
(1-3 years) from the date of 100% for Unsecured portion
NPA
Doubtful-III (>3 5th year from the 100% of the outstanding
years) date of NPA
Loss N.A. 100% of the outstanding
409
Standard N.A. a) 0.25% for Direct advances to Agri & SME

b) 1.00% for CRE
c) 0.75% for CRE-Residential Housing
Sector
d) All others not included above including
staff accounts - 0.40%
FAQ on compromise settlements

Sl Question Answer
no
1 Monetary ceiling for cases 20 lacs
handled by civil court, but
referred to LOK ADALAT
2 Monetary ceiling for cases NO ceiling
handled by DRT, but referred to
LOK ADALAT
3 Definition of Compromise Negotiated settlement where a borrower offers to
settlement under BANK’s Policy pay, and the Bank agrees to accept in full and final
settlement of its dues an amount less than the total
amount due to the Bank under the relative loan
contract.
4 For secured loans which are NPV (Net Present Value).
meant to be settled under The NPV of settlement amount should generally not
compromise, what is the criteria be less than Net Present Value (NPV) of the
to be used to arrive at the realizable value of the available securities
amount to be settled
5 Formula for NPV Realisable value/(1+i)ˣ
i= MCLR for 6 months tenor

x= 5 years from the date of notice under section
13(2) in case of SARFAESI action /
7 years from the date of filing suits in case of DRT /
Court cases.
6 Initial deposit stipulated for At least 5% (15% for wilful defaulters) of the offer
compromise settlement amount may be taken from the borrower
7 Remaining amount 1. In lumpsum (OR)
2. In installments of 12 months. If the customer
wants to go upto 18 months, CGM is the
appropriate authority to approve it.
8 If lumpsum not paid promptly If the entire compromise amount is not paid within
six months, interest at prevalent benchmark rate
(presently MCLR for 6 months tenor) on the balance
amount paid after six months shall be charged from
30th day from the date of letter conveying approval
of the compromise to the borrower
9 If the compromise settlement In case of failure of a compromise 6 proposal,
failed… branches should strive to conduct auctions under
SARFAESI within three months from the date of
cancellation of Compromise/OTS.
410
10 Do guarantors can enter into Compromise Settlement proposals from guarantors
compromise settlement? should be treated at par with proposals from
borrowers.
11 Compromise settlement of fraud Compromise settlement involving a borrower
accounts –how to be handled declared as fraud will be allowed only with the
condition that the criminal complaint will be
continued even after settlement of compromise
case( Original documents will not be handed over to
them)
12 Extent of concessions in Waiver, either in full or part of penal interest, if
compromise settlements charged.
i. Reduction in the rate of interest, from the
date the account became NPA.
ii. ii. Partial or complete waiver of interest
charged / accrued after the unit became
NPA.
iii. Waiver of a part of the principal dues.
iv. Partial or complete waiver of legal and
other expenses incurred by the Bank.
13 Delegation of financial powers As of now, vide delegation of financial powers, RCC
(Regional Credit Committee) has power upto Rs1.00
Cr
14 Documentation After concluding the compromise arrangement, the

settlement should be documented based on terms &
conditions of sanction as per legal requirement.
15 Refinance to the borrowers No fresh finance will be considered.
However, in exceptional cases, fresh finance may be
considered by sanctioning authority after minimum
cooling period of 3 years from the date of settlement
of compromise amount in full.
16 Reference material Review of compromise settlement policy, e-Circular
No.: CCO/CPPDADV/167/2019 – 20, dated
18.01.2020
411
1.Loss assets should be written off. If loss assets are permitted to remain in the
books for any reason, ______% provisioning should be done.
100
75
50
25
2.Provisioning of Doubtful assets: 100 percent of the extent to which the advance
is not covered by the realizable value of the security. In regard to the secured
portion, provision may be made on the following basis, at the rates ranging from
25 percent to 100 percent of the secured portion depending upon the period for
which the asset has remained doubtful
Up to one year- 25%
1 to 3 years - 40%
More than 3 years - 100%
All are correct.
3.Provisioning of Substandard assets:
A general provision of 15 percent on total outstanding.
The ‘unsecured exposures’ which are identified as ‘substandard’ would attract
additional provision of 10 per cent, i.e., a total of 25 per cent on the outstanding
balance.
Both are correct.
4.Provisioning of Standard Assets:
Direct advances to agricultural and Small and Micro Enterprises (SME) sectors -
0.25%.
Medium Enterprises will attract 0.40%
All other loans and advances - 0.40%
All are correct.
5.Provisioning of Standard Assets:
Advances to Commercial Real Estate (CRE) Sector - 1.0%
Advances to Commercial Real Estate – Residential Housing Sector (CRE - RH) at
0.75 per cent.
Both are correct
1.First Notice:When the account is irregular for more than 30 days i.e., SMA 1, 1st
Notice will be sent to the borrower/s giving _________ days’ time reckoned from
the date of service of notice, to clear the overdue amount.
7
15
30
45
2.In case the notice could not be served, a copy of the demand notice may be
affixed on the outer door or at a conspicuous part of the house or building of the
borrower or his agent where he resides or carries on business.
True
False
3.Second Notice(Letter from the Branch to Borrower/ Guarantor about
engagement of Recovery Agent for Repossession of vehicle): 2nd notice will be
issued after classifying the loan account as NPA. It will be intimated to the
borrower that the loan is recalled and entire amount with interest becomes
payable within _______ days from the date of the notice.
7
15
30
45
412
4.When the second notice is also ignored the bank has the right to repossess the
vehicle. The authority empowered to sanction the loan would be the authority to
take a decision on repossession of the vehicle for which no approval from
Controlling Authority is required.
True
False
5.In case the customer does not hand over the vehicle as requested in our second
notice, the repossession should be resorted to by Resolution Agent.
Presence of Bank official is not required while repossessing.
Presence of Bank official is required while repossessing.
6.After repossessing the vehicle, in the presence of _____ witnesses, a Panchnama
should be drawn up. The repossessed vehicle should be kept in the custody of
RAs
One
Two
Three
Four
7.The valuation of the vehicle should be arranged immediately on possession of
the vehicle. Which can be done by _________________. It should be completed
within one week of repossession.
An authorized service centre of the manufacturer
a government approved valuer
an insurance surveyor’s
Any one of the above.
8.Immediately after the valuation, the Reserve Price should be arranged to be
fixed by the Zonal Office Credit Committee/Competent Authority. It should be
completed within 7 days’ time. Valuation and Fixing of Reserve Price should be
completed within _______ days from the date of seizure/ repossession of the
vehicle.
15
30
9.Third Notice (Sale Notice): Before effecting the sale, a notice of minimum
_________ days to be given to the borrower intimating that as he failed to repay
the dues by him and having repossession of the vehicle by the Bank, it has been
decided to sell the vehicle to recover the dues under the loan account. The bank
will hand over the possession of the asset to the borrower any time after
repossession but before concluding the sale transaction, provided the Bank dues
are cleared in full or a compromise settlement has been reached between the
borrower and the Bank.
7
15
21
30
10.All three notices mentioned below should be sent in duplicate, one copy by
courier/ ordinary post and the second copy by ______________________.
Registered Post
Hand
413
414
Deceased NPA Cases under Education Loan (In case of Deceased Student only), Home Loans &
Home Related Loans (Except Loan Against Property), Loans to Micro Enterprises in SME
Segment (Except ABL & SME Gold Loan) and Agri loans (Except Agri Gold Loan & ABAL)
irrespective of the IRAC status of the account:
The revised guidelines for classifying an account as Quick Mortality are as under:
PER segment loans - Accounts which have slipped into NPA within 12 months from the
commencement of repayment of loan.
Other than PER segment loans - Accounts which have been sanctioned/ disbursed, and where
repayment has been initiated during the financial year and have slipped into NPA
category within the first two years of sanction / repayment commencement.
Back to Index page
415
HUMAN RESOURCES
1 What is the repayment period for staff under IHLS (including moratorium
period)?
2 For a staff CRE Home loan interest rates will be applicable to a maximum of 3
units beyond which …................ interest rates and repayment terms will apply.
a) Public HL b) SME
c) Staff d) None of these
3 In terms of Section which section the Lokpal and Lokayuktas Act, 2013
declaration of assets and liabilities by all employees of the Bank is applicable.
a) 41 b) 42
c) 43 d) 44
4 Under which act it has declared the banking industry to be a "Public Utility
Service
a) NI Act b) BR Act
c) Industrial Dispute Act d) RBI Act
5 What is the name of the digital life certificate submitted by pensioners?
a) Jeevan Pramaan b) Jeevan Shree
c) Jeevan Raksha d) Jeevan Dhan
6 What is the maximum amount paid to an officer under the policy of ex-gratia
lumpsum amount in lieu of Compassionate Appointment ?
a) Rs 10 lacs b) Rs 14 lacs
c) Rs 30 lacs d) Rs 15 lacs
7 'Meri Unnati Mere Haath' is the punchline of which project.
a) Project Saksham b) Project E-Education
c) Project E-Gyan d) Project E-Learning
8 In the case of an officer who is ineligible for casual leave, the entire balance
of casual leave should be credited to …............................ leave account
a) Un-availed casual leave b) Special leave
c) Sick Leave d) Privilege Leave
9 What is the eligibility amount under IHLS to officers for repair/ renovation
/alteration of the house/ flat acquired without bank's finance.
a) Rs. 20 lacs b) Rs.30 lacs
c) Rs. 60 lacs d) Rs.50 lacs
10 As per which award the transfer of subordinate staff has been taken place?
a) Sastry b) Trade Unions Act
c) Bank Employees' Union d) Desai
11 As per 5 Year transfer Policy, Redeployment Policy and Transfer under Career
Progression Policy, the cut off date every year for award staff is
a) 1st June b) 1st Jan
c) 1st April d) None of these
12 The cases relating to sexual harassment of women at workplace in our Bank,
a person aggrieved by the decision made by the Internal Complaints
Committee (ICC)/ Non implementation of the decision of ICC, may prefer an
appeal within ____________ days of the recommendations of ICC to the
Internal Appellate Committee (IAC) of the Bank.
a) 30 b) 45
c) 60 d) 90
13 Silver Jubilee Award for completing _______________ years service may be
presented to employees
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a) 10 b) 20
c) 25 d) 30
14 If an employee has been under suspension and he died during suspension,
the period of suspension till his death should be treated as ___________.
a) Suspension period b) On Duty
c) Leave d) None of the above
15 The employee under suspension there should not, however, be any
deductions under the ___________ heads.
a) Income Tax b) Instalments against loans granted
by the Bank
c) Payment to the Credit Co-operative d) Provident Fund Contribution
Society
16 Who is the Appellate Authority for staff award Branches under Zonal Offices
headed by SMGS IV or below
a) Regional Manager b) DGM (B&O)
c) DGM & CDO d) None of the above
17 In the case of Staff Housing Loans, Stamp duty, Registration Charges and
other documentation charges, be permitted to be added to the cost of the
house/dwelling unit for the purpose of calculating LTV ratio in cases where
the total project cost of dwelling unit does not exceed Rs. ___________ lacs.
a) 10 b) 20
c) 30 d) Irrespective of the project cost
18 What is time limit / gap specified for acquiring a second house or a third
house from the date of acquisition of 1st house under staff IHLs.
c) 5 years d) No gap
19 For reporting any unethical practice or behaviour or violation of service rules
in the Bank and defines for its staff the policy is called ________.
a) Fraud Alert b) NPA Resolution
c) Whistle Blower d) Early Warning System
20 What is the ____% of margin required under SBI Global Ed-Vantage Scheme
for wards of staff members at the time of each disbursement?
a) 10 b) 20
c) 25 d) NIL
21 What is the Moratorium Period (in months) after completion of the course and
Repayment Period (in years) under SBI Global Ed-Vantage Scheme for wards
of staff members?
a) 6, 10 b) 12, 10
c) 6, 15 d) Not Applicable for Staff
22 What is the applicable rate of interest (% simple) limit upto Rs 40.00 lacs and
above Rs 40.00 lacs under Individual Housing Loan Scheme for employees?
a) 6.5 & 7 b) 6.5 & 7.5
c) 7&8 d) 5.50 & 5.95
23 What is the limit for officer up to SMGS -V under Individual Housing Loan
Scheme for employees?
24 Whether an officer can surrender and encash HTC?
a) No b) Yes
c) Only leave can be encashed d) Only travel fare can be encashed
25 What is the maximum quantum of loan can be sanctioned to a subordinate
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staff for purchase of a Two Wheelers?
a) Rs. 0.50 lacs b) Rs. 0.60 lacs
c) Rs. 0.75 lacs d) Rs. 1.50 lacs
26 What is the name of the portal in HRMS wherein the employees can
raise/resolve their grievances?
a) Jeevan Pramaan b) Sanjeevani
c) Siranjeevi d) Jeevan Mitra
ANSWERS
QN 1 2 3 4 5 6 7 8 9 10
ANS A B D C A C A D B A
QN 11 12 13 14 15 16 17 18 19 20
ANS A D C B D B A D C A
QN 21 22 23 24 25 26
ANS C D D B D B
Back to Index page
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Preventive Vigilance and RFIA 2023-24
1 How many types of Vigilances are there?
a) 1 b) 2
c) 3 d) 4
2 The caution exercised to take all preventive measures well before the
happening of a fraud/forgery is called _________________.
a) Vigilance b) Preventive Vigilance
c) Punitive Vigilance d) Detective Vigilance
3 Preventive Vigilance Committees have to be formed at branches having staff
strength of ______________.
a) 30 or more b) 20 or more
c) 25 or more d) 10 or more
4 How many staff members should be co-opted on the Preventive Vigilance
Committee of each unit?
a) 20% of staff members b) 30% of staff members
c) All staff members d) 30% of staff members, minimum 3
officers/employees
5 Who would be permanent member(s) of the Preventive Vigilance Committee?
a) Branch/Unit Head b) Official dealing with Operational
Risk
c) Both of the above d) Any one of the above
6 What is the full form of RCSA
a) Risk for Credit and Self-Assessment b) Risk and Control Self-Assessment
c) Operational Risk Self-Assessment d) Risk Control for Self-Audit
7 RCSA will be done at __________ intervals.
a) quarterly b) half-yearly
c) yearly d) monthly
8 What is a risk event for which no financial loss was incurred not because
of effective controls, but due to fortuitous circumstances?
a) Operational Risk Event b) Credit Risk Event
c) Market Risk Event d) Near Miss Event
9 Reporting of NME is to be done through__________________.
a) Risk Management Module b) Incident Management Module
c) Customer Management Module d) Borrower Management Module
10 What is the full form of DAST?
a) Damage Assessment and Safety Team b) Damage Assessment and Security
Team
c) Disaster Assessment and Salvage d) Damage Assessment and Salvage
Team Team
11 BC&OR in case of newly opened Branch/CPC/Office should be drawn and
approved within ____________ from date of opening.
12 BC&OR in the case of existing Branch/CPC/Office is required to be reviewed and
approved every year as on ______________.
a) 31st March b) 31st December
th
c) 30 June d) 30th September
13 The BC&OR document, after approval by Controller, should be recorded in the
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__________________.
a) BCP Register b) Branch Document Register
c) ORM Risk Register d) Both b) & c)
14 BC&OR should be invoked within _______________ of disruption.
a) 2 hours b) 1 hour
c) 30 minutes d) 45 minutes
15 BC&OR is required to be tested across all branches/CPC/offices at least once in
a _____________.
a) Month b) Quarter
c) Half-year d) Year
16 What is the full form of CMT?
a) Crises Management Team b) Critical Management Team
c) Crises Maintenance Team d) Care Management Team
17 The BC&OR policy should be reviewed by______
a) ORMD b) DMD & CRO

c) CRMD d) CCRD
18 Maximum _________cartridges are kept with every gun against
acknowledgement of the guards.
a) 2 b) 8
c) 10 d) 20
19 The guards should attend refresher training course and medical check-up once
in _____________.
a) a year b) every two years
c) six months d) three years
20 Password should be changed at least once in _____________.
c) 90 days or when you suspect it was d) 180 days
compromised
21 All remittances exceeding Rs 100 lacs, whether carried by cash van or hired
vehicle, should be accompanied by _______ (Non-CAC linked).
a) minimum one-armed escort b) two armed guards
c) police escort d) three armed guards
22 Branch auditor has pointed out few small accounts where credit summations were
more than 1 lac in the last year. How should the branch close this audit remark?
a) Intimation should be sent to the b) The account should be closed, and
customer to reduce transaction to below normal savings account should be
1 lac in the current year opened
c) Fresh KYC should be done in the d) Hold to be marked in the account
account
23 Charge to be registered with Registrar of Companies (ROC) within a period of
_____
a) 30 days from the date of execution of b) 30 days from the date of sanction
documents
c) 15 days from the date of sanction d) 15 days from the date of execution of
documents
24 The score in CRM was 860. Deviation in External Compliances was at 18%. What
could be the resultant score?
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a) 860 b) 810
c) 706 d) 806
25 ROC Search report to be obtained at the time of ______
a) Pre-sanction b) Post-sanction
c) Renewal d) All the times
26 To have control over fraudulent attempts of login, report to be checked is
_______
a) GLCNTR b) GLCOMP
c) USER_AMENDMENTS_MADE_ d) Teller_ Unsuccessful_Login_Report
BY_BRANCH.txt
27 Bi_Monthly Verification of currency chest branch is not conducted, branch to
take up with ______ and ensure verification of the same.
a) Corporate center b) Local Police
c) RBI d) Controllers
28 In KCC accounts (limit >Rs. 25,000) Maximum drawing Limit (MDL)_____
a) is enhanced by 20% each year subject b) is always equal to Maximum
to satisfactory account conduct permissible limit.
c) if not renewed, then account becomes d) is maximum which can be disbursed
NPA immediately in normal condition at a given time.
29 What is the RFIA onsite score for Problem Loan Management?
a) 100 b) 470
c) 265 d) 120
30 Branch auditor has mentioned few instances where multiple IOIs were issued on
the same day with same applicant and beneficiary. The aggregate value of which
was more than Rs. 50,000/-. How does the branch rectify audit irregularity?
a) Deviation cannot be rectified. It b) Branch has to approach the
is flagged for effective customer for cancelling one of the
monitoring. IOIs.
c) As the value of each of the IOIs is less d) Customer needs to be advised to
than Rs 50,000, no action is required replace applicant of the IOI
31 Outlier branches should be subjected to Internal Audit within a period of
c) between 9-12 months d) beyond 12 months
32
a)
c)
33 The buildings, factories land & building, their fittings and fixtures, and machinery
(which form part and parcel of the mortgaged immovable property) must be kept
fully covered by insurance against the risks. Find Odd one out.
a) Fire and Lightening b) Comprehensive risk
c) Riots & Strikes d) Earthquake
34 Reconciliation of GLIF entries in cash are to be done through_____

a) GLCNTR report b) Audit BGL report
c) GLCOMP d) GL Finance one report
35 Duplicate Key verification should be initiated and completed in/at ______
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a) Same day during taking over as BM b) Start of RFIA only
c) Two days, to check each key individually d) Leisurely during taking over as BM
during taking over as BM
36 Break open of lockers requires approval of_____
a) Branch Head b) DGM (B & O)
c) Controlling Authority d) No approval is required
37 Audit Notes during RFIA, are to be kept in ______
a) Branch Document b) Branch Dossier
c) Register containing list of Important d) Personal file of Branch Manager
Registers
38 Audit BGL accounts are required to be monitored on ______ basis.
a) Fortnightly b) Monthly
c) Weekly d) Daily
39 Shri Rahul, BM of Mankheda Branch intends his branch to be in NORMAL
category. What should be the outlier score in RADAR for Normal category
branches?
a) 0-200 b) 0-250
c) 0-249 d) 0-300
40 CGTMSE cover is available for MSME loans upto ______for Manufacturing &
Services.
a) Rs. 0.50 Crores b) Rs. 1.00 Crores
c) Rs. 5.00 Crores d) Rs. 2.00 Crores
41 What according to you should branches aim for in RADAR?
a) Higher Outlier score and lower RADAR b) Higher RADAR score and lower
score Outlier score
c) Higher RADAR score and higher outlier d) All of these
score
42 A business correspondent perpetrated a fraud at Dholepur branch. What would
the penalty for fraud in RFIA?
a) 50 b) 124
c) NIL d) 25
43 As soon as a disaster is declared, the communication regarding the same
shall be send to the respective ______ by the Head of the Branch
a) Controller b) LHO
c) AO d) Local Police station
44 Which of the following is correct if the security details are not entered in CBS?
a) No impact b) If security is Nil in CBS, it will be
treated as Loss Assets and will
require 100% provisioning.
c) If security is Nil in CBS, it will be d) If security is Nil in CBS, it will be
treated as Sub Standard Asset and will treated as Loss Assets, however no
require 100% provisioning. provisioning is required.
45 While arriving at Drawing Power, margin to be deducted to arrive at_____
a) Real cost of the material b) Realisable value
c) Advance value d) margin need not be deducted
46 After making necessary entry regarding vehicle particulars in LOS/CBS,
Branches/CPCs have the option of keeping any of the below mentioned with
the loan documents. Which one is incorrect?
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a) Copy of vehicle registration certificate b) Extract from Vahan.nic in for the
with banks charge noted there in same
c) Form B extract from RTO for the same d) Copy of the SMS received from 7738
299 999
47 As per CRA currently, no new connections or enhancements in credit limits are
to be considered in respect of accounts rated and worse, subject to exceptions
like availability of Central Govt guarantee and other deviations etc.
a) SB-10 b) SB-11
c) SB-12 d) SB-13
48 At a branch, if the variation between the vetted Self audit score by Controller and
RFIA onsite audit score is beyond 10%, what would be the penalty in CRM and
ORM areas?
a) CRM : 10 ORM : 10 b) CRM : 15 ORM : 15
c) CRM : 20 ORM : 20 d) CRM : 5 ORM : 5
49 Banker's cheques outstanding for more than years _____ to be transferred
to charges account.
a) 1 b) 2
c) 3 d) 4
50 Accounts _____ Cr. and above which has been taken over from other Bank/FI are
subject to Risk Focused Credit Audit (RFCA)
a) Rs. 20 Crores b) Rs. 10 Crores
c) Rs. 5 Crores d) Rs. 1 Crore
51 For tractor loans, branches should get the lien noted in the books of RTA
and the same should be verified by the branches with in a period of days
from the date of disbursement of the loan
52 In case of Term Loan if the moratorium in repayment is not fed in the system
properly.
a) Penalty will be levied b) Account will become Technical NPA
c) Account will be Quick mortality d) Will not impact on IRAC status
account
53 The Insurance policies are required to be obtained in the joint names of the Bank
and the Borrower or in the sole name of the Borrower if the policy contains
a) Hypothecation Clause b) Bank’s Clause
c) Assignment Clause d) Bank’s Charge
54 Valuables inadvertently left by hirer(s) outside the lockers in the vault/ room
should be retained as safe deposit article at the branch in a packet sealed with
the
a) personal seals of both cash officer and b) personal seals of both the joint
locker-in-charge. custodians of cash.
c) personal seals of cash officer and SWO. d) personal seal of cash officer
55 What are the source systems in RADAR?
a) CBS b) LOS
c) LLMS d) CBS, LOS & LLMS
56 While computing Drawing Power, which of the following is excluded?
a) Stores & Spares b) Unpaid stock against LC
c) Receivables within cover period d) Sundry creditors accepted in CMA
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57 Stock in the stock statement should be valued at _____
a) LIFO b) FIFO
c) Average Value Method d) Any of the above but uniformly
58 Unit should submit monthly stock statement by _____of next month
a) 5th b) 10th
c) 15th d) 20th
59 The opening balance of stock in stock statement must be verified with______
a) FFR statement b) Closing Balance
c) Invoices provided by the unit d) Actual stock at the time of
inspection
60 Insurance of ______ is mandatory.
a) All Current Assets b) Current Assets (Inventory)
c) Book-debts d) Intangible Assets
61 Vigilance is defined as
a) quickness and responsiveness b) delay and indecisiveness
c) watchfulness and alertness d) official and formal
62 What is not the function of the vigilance
a) Disciplining the wrong doers and b) Increasing transparency and
protecting the honest performers fairness
c) Reducing wastages and leakages d) reducing accountability
63 Which is not a function of Vigilance
a) Disciplining the wrong doers and b) Increasing transparency and
protecting the honest performers fairness
c) Ascertaining accountability d) Increasing Business
64 Who is the Designated Official in vigilance case of Corporate Centre and its
establishments?
a) DGM (Fraud Prevention & Monitoring b) GM (Fraud Prevention & Monitoring
Dept) Dept)
c) CGM (Fraud Prevention & Monitoring d) AGM (Fraud Prevention & Monitoring
Dept) Dept)
65 Which of the following type of Vigilance has the potential to prevent lapses from
occurring by stemming the rot at the initial stages itself?
a) Punitive Vigilance b) Preventive Vigilance
c) Corrective Vigilance d) Inclusive Vigilance
66 Management can use this type of Vigilance to instil a sense of responsibility and
accountability amongst its work force.
a) Preventive Vigilance b) Participative Vigilance
c) Punitive Vigilance d) Corrective Vigilance
67 What is Charge Sheet?
a) Suspension letter b) Caution letter
c) Letter stating details of charge/s against d) Intimation before suspension
the erring official.
68 An employee/ officer should not normally be punished unless….

a) charge sheet is not issued. b) explanation is not asked.
c) he acknowledges his guilt. d) enquiry proceedings are not
conducted
69 The disciplinary proceedings begin with …...
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a) calling for explanation of erring b) serving charge sheet.
employee.
c) start of first stage of hearing d) end of all hearings
70 When the charge sheet cannot be served in person, it should be served as per
clause 16 of settlement dated 10.04.2002 for Award Staff. Which of the following
statement is incorrect?
a) Any notice, order, charge-sheet, b) In the case of an absent employee,
communication or intimation, which is notice shall be sent to him by
mean for an individual employee, shall registered post with
be in English as court recognizes acknowledgement due
English only in case of dispute.
c) If an employee refuses to accept any d) Where such notice is sent by post, it
notice in connection with disciplinary is sent to the employee at his last
proceeds when it is sought to be served recorded address by registered post
upon him, such refusal shall be deemed with acknowledgement due.
to be good service upon him subject to
fulfilment of other terms & conditions
71 For officers, when charge sheet is sent by Regd. Post, it should be sent to his/
her which address?
a) Permanent address as mentioned in his/ b) Referrals provided by him/ her at the
her service sheet time of his/ her appointment
c) Last known address to the Bank d) Last known address to the friends.
72 If the employee/ officer refuses to accept the charge sheet, what should be the
course of action?
a) Write the fact on it and get signature of b) Write the fact on it and get signature
one witness of two witnesses
c) Publishing it in one local and one d) By pasting it on the door of his/ her
national newspaper residence/ society gate.
73 What “Nemo Judex Causa Sua” means?
a) no one should be judge in his own cause b) Everyone should be a judge
c) Every Law graduate should be a judge d) No such word exists
74 What “Audi Alteram Partem” means?
a) hear my side b) hear the other side
c) hear both sides d) Both b& c
75 What “de novo enquiry” means?
a) starting afresh. b) End
c) Mid way d) There is no such word
76 Who appoints Enquiry Officer (EO)?
a) Alleged Employee. b) Branch Manager
c) Award Union appoints EO d) Disciplinary Authority
77 Which among the following is not correct with regard to the penalties that may be
imposed on a Supervising Staff found guilty of minor misconduct?
a) Censure b) Reduction to a lower stage in
timescale of pay for a period of five
years, without cumulative effect.
c) withholding of increments of pay with or d) Recovery from pay or such other
without cumulative effect OR amount as may be due to him of the
withholding of promotion whole or part of any pecuniary loss
caused to the Bank by negligence or
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breach of orders
78 What would be the effect of punishment under major penalty "COMPULSORY
RETIREMENT" under Rule 67(h) of SBIOSR?
a) To be resorted where deprivation of b) To be imposed on officers, where
Pension benefits, consequent upon officers have completed 20 years of
termination of employment of an officer, pensionable service & attained the
may work too harshly on him. age of 50 years. Who have
completed 25 years of Pensionable
Service?
c) Both 1 &2 are correct d) None of the above.
79 Prevention of Corruption Act 1988 came into effect from
a) September 1988 b) September 1998
c) September 1978 d) September 2008
80 Prevention of Corruption Act extends to

a) Whole of India b) Only Public Sector Banks
c) Only Central Govt Institutions d) Whole of India, except J & K
81 Internal Auditor (IA) shall ensure verification of purity and quantity of pledged
gold ornaments
a) 25% by number and 25% by amount of b) 25% by number and 25% by value of
sampled gold loans all gold loans
c) 25% by number and 25% by value of d) No such verification exist
sampled gold loans
82 For delayed closure of FEMA Audit report
a) 50 marks b) 20 marks
c) 10 marks d) All are incorrect
83 Maximum penalty on account of False Compliances in FEMA
c) 20 marks d) 10 marks
84 Negative score applicable in Fraud category I
a) 50 marks in ORM only b) 50 marks in CRM only
c) 25 marks either in ORM/CRM d) 50 marks either in CRM/ORM
85 Negative score of 20 would be imposed in Fraud Category III A
a) No negative score b) 20 in ORM only
c) 20 in CRM only d) 20 in ORM/CRM
86 Total exposure in ERS – Small Loans
a) Above Rs. 1 Cr and Upto Rs. 10 Crores b) Above Rs. 1 Cr and Upto Rs. 5
Crores
c) Above Rs. 1 Cr and Upto Rs. 20 Crores d) Below Rs. 1 Cr
87 Timelines for attending Alerts for OTMS maker to give response
a) Within 2 days b) With in 4 days
c) Within T+1 day d) With in T+2 days
88 The OTMS alerts should be closed within a maximum timeline of
c) 15 days d) 7 working days
89 In OTMS Auto escalation through email to Circle CGM after
a) 15 days of alert generation b) 30 days of alert generation
c) 10 days of alert generation d) 20 days of alert generation
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90 In OTMS Auto escalation through email to Circle GM after
a) 15 days of alert generation b) 7 days of alert generation
c) 10 days of alert generation d) 20 days of alert generation
91 Verification of branch compliances by Internal Auditors during RFIA:
a) 30 % of BCNR and 70 % of BCR alerts b) 70 % of BCNR and 30 % of BCR
alerts
c) 25 % of BCNR and 50 % of BCR alerts d) 50 % of BCNR and 50 % of BCR
alerts
92 Out of the daily closed alerts, CAOs will scrutinize ___ of auto sampled alerts.
a) 25 % b) 30 %
c) 10 % d) 15 %
93 Quality Assurance- Suniyantran
a) from 1.6.2022 to 31.3.2023 b) from 1.6.2022 to 31.12.2022
c) from 1.4.2022 to 30.9.2022 d) from 1.4.2023 to 31.3.2024
94 Penal Score for False Compliances (FC) in Compliance audit
a) 2 for each FC, Min. of 5 b) 2 for each FC, Min. of 5 Maximum
50
c) 2 for each FC, Min. of 5 Maximum 20 d) 2 for each FC, Min. of 5 Maximum
No Cap
95 Penal Score for Offsite Transaction Monitoring System (OTMS)
a) 2 for each FC, Min. of 5 b) 2 for each FC, Min. of 5 Maximum
50
c) 2 for each FC, Min. of 5 Maximum 20 d) 2 for each FC, Min. of 5 Maximum
No Cap
96 The revised periodicity for TBA shall be
a) 36 Months from the date of “Previous b) 27 Months from the date of “Previous
Onsite Audit”. Onsite Audit”.
c) 12 Months from the date of “Previous d) 18 Months from the date of “Previous
Onsite Audit”. Onsite Audit”.
97 The existing BC Plan has been renamed as
a) BC&OR b) BC&CR
c) BO&CR d) BC&IR
98 What is BIA ?
a) Bank Impact Analysis b) Business Improvement Analysis
c) Business Impact Analysis d) Business Impact Assessment
99 How many CRM and ORM value statements?
a) 1170,1095 b) 1190,1100
c) 1180,1096 d) 1190,1200
100 OTM Compliance Cells at LHOs

a) CFO & AGM(S&I) b) CCRO & AGM(S&I)
c) DGM Vigilance & AGM (S&I) d) DGM Compliance & Risk &
AGM(S&I)
101 All the 17 Circle Audit Offices (CAOs) each headed by General Manager, reports
directly to
a) CGM(IA-II) b) CGM (IA-I).
c) CGM of each Circle d) CGM (IA-III)
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102 Periodicity of Expenditure Voucher Audit
a) Once in 21 months b) Once in 6 months
c) Once in 12 months d) Once in 18 months
103 Out of the daily closed OTMS alerts , -------alerts on sample basis will be provided
to DGM & CFO of respective Circles,
a) 30 b) 25
c) 50 d) 20
104 OTMS Checker to verify
a) Within 2 days b) Within 3 days
c) Within 5 days d) T+0 days
105 Time line of Submission of RFIA compliance in BPR branch within
a) 7 weeks b) 3 weeks
c) 8 Weeks d) 6 Weeks
106 All service providers are audited at least once in _____ months
a) 12 b) 18
c) 24 d) 36
107 A maximum timeline of ______ days is prescribed for closure of ATRs of ERS,
from the date of Review Report with timelines
108 The Report will be treated as “Dealt With” when the compliance level in High Risk
/ Medium Risk areas is ______and overall compliance is ____
a) 95 % and 90 % b) 90 % and 95 %
c) 85 % and 90 % d) 90 % and 85 %
109 The score matrix for determining the “Outlier Status” of the branch is
a) >400 up to 450 b) > 450
c) 0 upto 250 d) >250 up to 400
110 Unauthorised withdrawals comes under Fraud category
a) I b) II
c) III d) IIIA
111 Proper scrutiny of CIBIL reports not done comes under Fraud category
a) I b) II
c) III d) IIIA
112 Property not identified comes under Fraud category
a) I b) II
c) III d) IIIA
113 Payment from an Inoperative Account comes under Fraud category
a) I b) II
c) III d) IIIA
114 Fraud committed by BC/CSPs comes under Fraud category
a) I b) II
c) III d) IIIA
115 Diversion of funds comes under Fraud category
a) I b) II
c) III d) IIIA
116 One of the parameter for Trigger based Audit is
a) Net Advances Exposure < Rs.30.00 b) Net Advances Exposure < Rs.50.00
Crore and Deposits Rs. < Rs.125 Crore Crore and Deposits Rs. < Rs.125
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Crore
c) Net Advances Exposure < Rs.34.00 d) Net Advances Exposure < Rs.100.00
Crore and Deposits Rs. < Rs.125 Crore Crore and Deposits Rs. < Rs.250
Crore
117 For TBA branch identification, Overall NPA as on 31st March including migration
to SARG and write off during the year should not be ______
a) More than 2 % b) Agri 1 % and retail 2 %
c) More than 1 % d) NIL NPA
118 Denying access to assets financed/collateral securities comes under
a) Wilful defaulters b) SARFAESI defaulters
c) RBI defaulters d) Non Co operative borrowers
119 Once the account is decided to be Red flagged, it should be reported on Central
Repository of Information on Large Credits (CRILC) platform to RBI through CPM
Department at Corporate Centre within _____ days of such classification
c) 7 days d) 5 days
120 Threshold level for reporting of accounts classified as RFA/ Fraud from Rs. _____
crore to Rs. _____ crore on CRILC platform,
a) 50,3 b) 50,25
c) 50,10 d) 50,5
121 What is the assigned Rating for Score 725 to 849 in RFIA
a) A b) B
c) C d) D
122 What is the Negative Score in RFIA for Frauds under Category III Digital Frauds
with Penalty
a) No Negative Score a) 20
c) 50 or more c) 5 for each instance reported
123 A maximum penalty score of ______ each for CRM /ORM/FEMA will be imposed
a) 25 b) 50
c) 10 d) 5
124 Maximum negative score for DQI / Project Ganga Errors
a) 1 b) 2
c) 3 d) 4
125 Maximum Audit rating assigned for auditee units reporting deviations beyond
15% under External Compliances (EC) is ?
a) D b) One notch down
c) B d) C
126 What is the maximum CDS penalty score awarded for BMMC false certifications
a) 5 b) 10
c) 1 d) 10
127 What is the Negative marks awarded for delay in submission of compliance report
for more than 8 weeks
128 What is the disincentive for first return of compliance remarks of RFIA
129 What is the incentive given in current RFIA audit for timely submission of
429
compliances without any return to auditee units
130 What is the incentive given for Zero False Compliance in RFIA
a) 10 marks each in ORM&CRM in current b) 10 marks each in ORM&CRM in next
RFIA RFIA
c) 15 marks each in ORM&CRM in current d) 15 marks each in ORM&CRM in next
RFIA RFIA
Answers : Preventive Vigilance and RFIA
Q 1 2 3 4 5 6 7 8 9 10
ANS C B D D C B C D B D
Q 11 12 13 14 15 16 17 18 19 20
ANS B C D C D A A C B C
Q 21 22 23 24 25 26 27 28 29 30
ANS B B A C D D D D D A
Q 31 32 33 34 35 36 37 38 39 40
ANS C C B C A C A D B C
Q 41 42 43 44 45 46 47 48 49 50
ANS B C A B C D B C C B
Q 51 52 53 54 55 56 57 58 59 60
ANS A B B B D B D D B B
Q 61 62 63 64 65 66 67 68 69 70
Ans C D D B B C C A B A
Q 71 72 73 74 75 76 77 78 79 80
Ans C B A B A D B C A A
Q 81 82 83 84 85 86 87 88 89 90
Ans C A C D D C B C A B
Q 91 92 93 94 95 96 97 98 99 100
Ans A B D D D B A C C A
Q 101 102 103 104 105 106 107 108 109 110
Ans B D A A A C C A B A
Q 111 112 113 114 115 116 117 118 119 120
Ans B A B B B C A D C A
Q 121 122 123 124 125 126 127 128 129 130
Ans B B A C D A A B C B
Back to Index page
Customer Value Enhancement
430
1 Customer Value Enhancement Business Unit comes under which of the

following verticals in Corporate Centre
a) MD (Retail Business & Operations) b) MD (Global Banking & Subsidiaries)
c) MD (Commercial Clients & IT) d) MD (Stressed Assets, Risk &
Compliance)
2 Customer Value Enhancement Business Unit is headed by _________in
Corporate Centre
a) Dy. Managing Director b) Chief General Manager
c) General Manager d) Managing Director
3 The number of Life Insurers with whom the Bank has entered into tie up
arrangement for acting as Corporate Agent is
a) Three b) One
c) Four d) Two
4 Originally SBI Life Insurance is a joint venture between State Bank of India
and
a) Amundi b) Insurance Australia Group (IAG)
c) Societe Generale d) BNP Paribas Cardif
5 All “Individual” Policies of SBI Life are being marketed only by employees
licensed by IRDAI. Such employees are called as
a) Certified Insurance Facilitators b) Insurance Agent
c) Insurance Brokers d) Specified Persons (SP)
6 Originally SBI General Insurance Company was formed as a joint venture of SBI
with
a) Amundi b) BNP Paribas Cardif
c) Insurance Australia Group (IAG) d) Societe Generale
7 General insurance “individual” products can be sold only through trained and
qualified employees of the Bank, called
a) Certified Insurance Facilitators b) Specified Persons (SP)
(CIFs)
c) Insurance Solicitor d) Agent
8 SBI has tie ups with which of the following Asset Management Companies, for
distribution of their various Mutual Fund schemes
a) HDFC Asset Management b) Tata Asset Management Limited

Company Limited
c) Franklin Templeton Asset d) All the above
Management Company Pvt.
Ltd.
9 SBI Cards & Payment Services Pvt Ltd (SBICPSPL), is a joint venture between
State Bank of India, the Country's oldest and largest bank, and
a) BNP Paribas Cardif b) CA Rover Holdings, an Affiliate of
Carlyle
c) Societe Generale d) Amundi
10 The Bank, being a corporate agent has which of the following responsibilities
431
a) be responsible for all acts of b) ensure that no prospect is forced to
omission and commission of its buy an insurance product;
principal officer and every specified
person;
c) enter into agreements with the d) All the above
insurers in which the duties and
responsibilities of both are defined
11 Which of the following is not one of the Code of Conduct to be followed by
Specified Person
a) disclose the scales of commission b) inform promptly the prospect about the
in respect of the insurance product acceptance or rejection of the proposal
offered for sale, if asked by the by the insurer;
prospect;
c) identify himself and disclose his d) Disclose the Branch Target to win the
registration/ certificate to the sympathy of the prospect
prospect on demand;
12 Which one of the following is not a post-sale Code of Conduct of a Corporate
Agent about Customer Value Enhancement Business
a) advise every individual policyholder b) ensure remittance of the premiums by
to effect nomination or assignment the policyholders within the stipulated
or change of address or exercise of time, by giving notice to the policyholder
options orally and in writing.
c) ensure that its client is aware of the d) Check with the customer if he/she for
expiry date of the insurance even if mobilizing further business
it chooses not to offer further cover
to the client;
13 On registering with AMFI, the employee gets a EUIN. What does EUIN stand for?
a) Employee Universal Identification b) Employee Unique Identification
Number Number
c) Employer Universal Identification d) Employer Unique Identification Number
Number
14 Agents/ Distributors of Mutual Fund units are required to have which of the
following in order to market Bank’s identified Mutual Funds Products
a) NISM-Series-V-A: Mutual Fund b) Registration from AMFI (EUIN)
Distributors Certification Exam
c) Both d) Either (a) or (b)
15 Employees who have attained 50 years or 10 years’ experience in distribution of
mutual fund products as on 31st May 2010 can, instead of going for NISM exam,
has to do which of the following to obtain Mutual Fund Distribution Certificate.
a) Appear for a one day Continuing b) At the discretion of the SBI & SBI
Professional Education (CPE) Mutual Fund
session
c) Such employees can market d) No such relaxation available
Mutual Funds without any such
requirement
16 For strengthening need-based selling for sale of third- party products the
framework for _______of the third- party products has been devised by the Bank.
a) “Assessment of Business Potential b) “Assessment of Business coverage
and Customer Acquisition” and Relevance”
c) “Assessment of Suitability and d) “Assessment of Business Potential and
Appropriateness” Customer Coverage”
432
17 Which of the following is not the definition of Mis-selling?
a) Product features not explained in b) Consent of Customer not taken and
clear terms; promising unclear, Incomplete need analysis, products not
incomplete, misleading information, sold as per risk profile.
omission of key information,
miscommunication of fee or
charges, communicating
assured/guaranteed returns.
c) Forced selling with other Banking d) Disclosure of grievance redressal

products. mechanism
18 Which of the following SBI Life products have the highest Product Risk Grade
for the customer?
a) Smart Scholar b) Smart Privilege
c) Smart Shield d) Saral Swadhan Plus
19 Which of the following SBI Life products have the lowest Product Risk Grade
for the customer?
a) Shubh Nivesh b) Retire Smart
c) Saral Swadhan Plus d) Smart Privilege
20 ‘Arogya Premier’ is a product of which of our Bank’s JV subsidiary
a) SBI Life b) SBI General
c) SBI Mutual Funds d) SBI Cards
21 Which of the following products of SBI General covers ‘Fire & Burglary’ risk
a) Simple Home Insurance b) Personal Accident Insurance (PAI)
c) Loan Insurance d) SME Insurance
22 Which of the following SBI Mutual Fund products has the highest risk and
also promises highest returns for the customer
a) SBI Magnum Equity ESG Fund b) SBI Debt Hybrid Fund
c) SBI Short Term Debt Fund d) SBI Liquid Fund
23 Spot the odd man out:
a) SBI Blue Chip b) SBI Magnum Multicap Fund
c) SBI Small Cap Fund d) SBI Liquid Fund
24 Which of the following SBI Mutual Funds is in the correct order of Risk-Return
Matrix
a) Debt, Equity, Hybrid, Liquid b) Equity, Liquid, Hybrid, Debt
c) Liquid, Equity, Hybrid, Debt d) Equity, Hybrid, Debt, Liquid
25 The SBI Mutual Fund product which offers benefits under Sec. 80 C of Income
Tax Act is
a) SBI Equity Savings Fund b) SBI Thematic Funds like Healthcare
Opportunities etc.
c) SBI Long Term Equity Fund d) SBI Corporate Bond Fund
26 Which of the following SBI Mutual Fund products aims to provide returns by
identifying profitable opportunities between the spot and derivatives market
segments
a) SBI Arbitrage Opportunities Fund b) SBI Debt Hybrid Fund
c) SBI Focused Equity Fund d) SBI Magnum Tax Gain Scheme
27 Which of the following Equity Funds of SBI Mutual Funds has the highest
risk and also promises highest returns for the customer
a) SBI Focused Equity Fund b) SBI Thematic Funds like Healthcare
Opportunities etc.
433
c) SBI Magnum Midcap Fund d) SBI Equity Hybrid
28 Customers who look for investing in securities maturing on the next business day
can be suggested with which of the following SBI Mutual Fund Products
a) SBI Blue Chip b) SBI Magnum Tax Gain Scheme

c) SBI Small Cap Fund d) SBI Overnight Fund
29 Mutual funds which have investment exposure both in Equity & Debt securities
are called as
a) Thematic Funds b) Fusion Funds

c) Fund of Funds d) Hybrid Funds
30 Equity Mutual funds which invest in a particular Industry like Banking, Healthcare,
Finance, etc are called as
a) Thematic Funds b) Fusion Funds
c) Fund of Funds d) Hybrid Funds
31 Those Mutual Funds which trade like a common stock on a stock exchange are
known as _____________________
a) Thematic Funds b) Equity Funds
c) Exchange Traded Funds d) Debt Funds
32 The Regulatory authority for SBI Mutual Fund is
a) RBI b) Govt. of India
c) SEBI d) IRDA
33 The funds which invest in the same pattern as popular stock market indices
like CNX Nifty Index and S&P BSE Sensex are known as
a) Equity Funds b) Index Funds
c) Sector Funds d) Hybrid Funds
34 The funds which invest in Central and State Government securities and are best
suited for the medium to long-term investors who are averse to risk are
a) Index Funds b) Sector Funds
c) Gilt Funds d) Debt Funds
35 Investors can redeem a fixed amount, a fixed number of units or all returns above
certain base level. This mode of redemption is called as__________
a) Systematic Investment Plan (SIP) b) Lumpsum
c) Systematic Transfer Plan (STP) d) Systematic Withdrawal Plan (SWP)
36 Investors can benefit by investing at an average price over a period by investing
through
a) Systematic Investment Plan (SIP) b) Lumpsum
c) Systematic Transfer Plan (STP) d) Systematic Withdrawal Plan (SWP)
37 The products of the five SBI JV (Life, General, Cards, Mutual Funds & Capital
Markets) offered through _____________ of SBI YONO
a) Online Market Place (OMP) b) Financial Super Store (FSS)
c) Digital Banking d) None of the above
38 Which of the following SBI Credit Card variants are available in SBI YONO
a) SBI Card Elite b) Simply Save SBI Card
c) STYLEUP contactless card d) All of the above
39 Which of the following products of SBI Credit Card is not a co-branded credit
card
a) SBI Card Prime b) IRCTC SBI Card
c) Chennai Metro Card d) Yatra SBI Card
40 Which of the following Products and Services available on YONO for SBI General
434
Insurance
a) Aarogya Premier b) Critical Illness
c) Private Car Insurance d) All the above
41 Which of the following Services available on YONO for SBI Life Insurance
a) Purchase new policy b) Need Analysis
c) Linking of viewing of existing Policy d) All of the above
42 Which of the following Services available on YONO for SBI Mutual Fund
a) Additional Purchase of funds (Lump b) Opening an account (Folio)/Zero
sum/ SIP) Balance Folio.
c) Redemption/STP/SWP d) All of the above
43 Which of the following Products and Services available on YONO for SBI CAP
Securities
a) Link Demat & Trading Account b) View Demat Account & Trading
Portfolio
c) Apply for Trading & Demat Account d) All of the above
44 Risk of Early Death is covered by ______________ and Risk of Living Long is
covered by ________________
a) Life Insurance & Pension Plan b) Pension Plan & Life Insurance
c) Mutual Funds & Credit Cards d) Life Insurance & General Insurance
45 Which of the following SBI Life Insurance products is pure Term Insurance
plan:
a) Shubh Nivesh b) Saral Shield
c) RinnRaksha d) Smart Income Protect
46 Which of the following SBI Life Insurance products is Loan Protection
Insurance plan:
a) Shubh Nivesh b) Saral Shield
c) RinnRaksha d) Smart Income Protect
Q 1 2 3 4 5 6 7 8 9 10
ANS A C B D A C B D B D
Q 11 12 13 14 15 16 17 18 19 20
ANS D D B C A C D B C B
Q 21 22 23 24 25 26 27 28 29 30
ANS D A D D C A B D D A
Q 31 32 33 34 35 36 37 38 39 40
ANS C C B C D A B D A D
Q 41 42 43 44 45 46 47 48 49 50
ANS D D D A B C
Back to Index page
435
Recent e-Circulars, Changes in Banking and economic

environment
SOME IMPORTANT e-Circulars issued since April 2023
Circular No.: NBG/GAD-GBU/25/2023 – 24 Date: Wed 11 Oct 2023
➢ Branches may use Physical Life Certificate at Branch, Digital Life Certificate using
Jeevan Pramaan Application, Video Life Certificate through Video Based Customer
Identification Process (VCIP) OR Face Authentication Technology methods for
obtention of Life Certificate from pensioners.
➢ Pensioners can submit Life Certificate using Face Authentication Technology
either from home using android smartphone or Bank Branch.
➢ To promote increased use of Face Authentication technology, Branches should
obtain Life Certificate through Face Authentication technology as far as possible
where there is provision of android phone at Branch.
Circular No.: NBG/GAD-GBU/26/2023 – 24 Date: Thu 12 Oct 2023
INTEREST RATES FOR SMALL SAVINGS SCHEMES QUARTER-3 FY 2023-24
Circular No.: NBG/SMEBUCGTMSE/39/2023-24 Date: Tue 10 Oct 2023

Subject: Modifications in Credit Guarantee Scheme-I of CGTMSE
In SME products, Healthcare Business Loan, E-Smart Score, Fleet Finance (Regular
Scheme), CBG Satat, MSME Udaan, Marble Plus, Dal Mill Plus, Scheme for Financing
Ceramic Units in Morbi and E-DFS Scheme, the CGTMSE cover has been increase
to Rs. 5 crores
CCO/CPPD-ADV/43/2023 – 24 Date: Wed 4 Oct 2023

Subject: RUPEE EXPORT CREDIT - INTEREST EQUALISATION SCHEME
DGFT vide Trade Notice No. 05/2023-24 dated 25th May 2023 has made an
amendment in the IES scheme whereby annual net subvention amount would be
capped at Rs. 10 crores per Importer Exporter Code (IEC) in a given financial year. All
the disbursements made from 1st April 2023 shall be counted for an IEC for the current
financial year
Circular No: CRO/RMD-CRMD/5/2023 – 24 Date: Thu 5 Oct 2023

Subject: INTEGRATED DYNAMIC REVIEW WITH EARLY WARNING SIGNALS
(MLM) REITERATION OF GUIDELINES
The Integrated Dynamic Review with Early Warning Signals is applicable for all
borrowers having our bank’s exposure of Rs. 50 Cr and above (excluding IBG, NBFC
and Mutual Funds exposures). The existing trigger based dynamic review framework
436
will continue for exposures of Rs. 10 Cr and above but less than Rs. 50 Cr and the
half yearly Non-Trigger based Dynamic review will continue to be applicable for
exposures of Rs. 500 Cr and above
Circular No: NBG/PBU/ALAUTOLOAN/7/2023 - 24 Date: Thu 5 Oct 2023

SBI CERTIFIED PRE-OWNED CAR LOANS: MODIFICATION
➢ Two valuations for loan amount more than 25 Lacs

➢ EMI/ NMI ration changed as Up to 5 Lacs - 50%, 5-10 Lacs - 60% , Above 10
Lacs - 65%
➢ Businessmen & agriculturist not eligible in the scheme
Minimum CIC -
➢ Salaried / Pensioners - Minimum CIC – 689 & NTC Customers.
➢ Self-employed & Professionals: Minimum CIC – 700 & NTC Customers
Circular No : IBG/IBG- Domestic(IBD)/5/2023 – 24 Date: Thu 5 Oct 2023

Upgraded e-Trade / Yono Business EDPMS/ IDPMS Dashboard and
Reconciliation
Supporting documents uploaded by customers on e-Trade/ Yono Business for reconciliation

of IDPMS/ EDPMS will be sufficient and subsequent submission of documents in
original/through mail need not be insisted upon
Circular No.: IBG/IBG- Domestic (IBD)/6/2023 – 24 Date: Fri 6 Oct 2023

Foreign Contribution (Regulation) Amendment Act-2020 Extension of Validity of
Registration Certificate up to 31.03.2024
The validity of registration certificates of such entities whose validity was extended till
30.09.2023 in terms of the MHA Public Notice dated 24.03.2023 and whose renewal
application is pending, will stand extended till 31.03.2024 or till the date of disposal of renewal
application, whichever is earlier. ii. The validity of those FCRA entities whose 5 years validity
period is expiring during 01.10.2023 to 31.03.2024 and who have applied / will apply for
renewal before expiry of 5 years validity period, will stand extended up to 31.03.2024 or till the
date of disposal of renewal application, whichever is earlier
Circular No.: : IT/GLOBALITDMO/4/2023 – 24 Date: Fri 6 Oct 2023

Improving Data Quality Launch of Mission Clean Data (MCD)
The errors in DQI are to be rectified within the approved TAT of 7 days.
Circular No R&DB/AGNYBKGNACH/14/2023 – 24 Date: Fri 22 Sep 2023

NACH- MANDATE DURATION AND MANDATORY FINAL COLLECTION DATE
1. Mandate can be issued for a maximum duration of 30 years from the date of issuance
2. It has been decided to remove the option of "until cancelled" for all categories of mandates,
it will be mandatory to provide the Final collection date (end date) for all the categories of
mandates
Circular No NBG/MEGSS/9/2023-24 Date: Fri 22 Sep 2023

WEAVER’S CREDIT CARD PMMY SCHEME RENAMED AS WEAVER MUDRA
SCHEME(WMS)- REVISED GUIDELINE
437
1. WEAVER’S CREDIT CARD PMMY SCHEME (RENAMED AS WEAVER MUDRA

SCHEME
Quantum of Finance Minimum Rs.50,000/- Maximum Rs. 200000/- for Individual handloom
weaver/ Weaver Entrepreneur and for Handloom organization/ Entity
borrowers Maximum Rs. 2.00 Crores (However, Loan up to Rs.10
Lac will be reported under Mudra loan). – Cash Credit or Term loan
Assessment of Limit Working capital based on turnover method i.e. Bank finance will be
20% of turnover and 5% of turnover will be borrower’s margin
Margin 20% of the loan amount Individual Handloom Weaver/Weaver
Entrepreneur - Margin Money assistance @20% of loan amount,
subject to maximum of Rs.25,000/- Others: Handloom organization -
Margin money assistance @20% of loan amount, subject to
maximum of Rs.20.00 lakh (margin money @Rs.2.00 lakh for every
100 weaver/worker)
Validity valid for 3 years subject to annual review by the Bank
Cash transaction may be allowed for small value up to
Rs.20000/- as per IT act.
Repayment TL to be repaid in 3 years including Moratorium period of 3-6 months,
Cash Credit- On Demand
Government support - Individual Handloom Weaver/Weaver Entrepreneur –
Margin Money Margin Money assistance @20% of loan amount, subject to
Assistance: maximum of Rs.25,000/- Others:
Handloom organization –
Margin money assistance @20% of loan amount, subject to
maximum of Rs.20.00 lakh (margin money @Rs.2.00 lakh for every
100 weaver/worker)
Interest Subsidy Loans under the scheme is to be provided at the interest rate of 6%
for a period of three years. However, the Government’s interest
subvention will be capped at 7%
TAT For limit up to Rs. 5 lac: 2 weeks.
For limit above to Rs. 5 lac : 3 weeks.
Circular No R&DB/AGNYBKGNACH/15/2023 – 24 Date: Tue 26 Sep 2023

NACH- REVISION OF MANDATE PROCESSING TAT
NPCI has decided to revise the TAT for processing the physical mandates
The revision will occur in two phases: (copy attached as Annexure)
Phase I: 7 working days — Effective from September 1, 2023. (
i) 0 to 7 days – Incentive of ₹ 5 per mandate.
ii) Beyond 7 days – mandate will be expired – Penalty of ₹ 10 per mandate will
be levied.
Phase II: 5 working days — Effective from December 1, 2023.
(i) 0 to 5 days – Incentive of ₹ 5 per mandate.
(ii) Beyond 5 days – mandate will be expired – Penalty of ₹ 10 per mandate will
be levied
Circular No CCO/CPPD-ADV/41/2023 – 24 Date: Wed 27 Sep 2023
Railway Receipts (RR) / Lorry Receipts (LR) by IBA approved transport operator need not be
insisted upon as part of stipulated documents in LC, while issuance / opening of LC as well as
for negotiation / discounting of bills under LC (Inland LC / Foreign LC). GST paid invoices and
e-way bill as applicable are to be insisted upon in the stipulated documents in LC. LC should
be opened only where actual movement of goods / services is envisaged.
438
Circular No NBG/RE,H^HD-BF/23/2023 – 24 Date: Wed 27 Sep 2023
As per revised instruction, in case of new proposal, administrative approval to be obtained

from circle CGM. However, if sanction falls within the purview of various Corporate Center
Credit Committees i.e., RCCC and above, then obtention of administrative approval is waived
subject to there is no deviation from the policy guidelines
Circular No NBG/RE,H&HD-HL/24/ 2023 – 24 Date: Wed 27 Sep 2023

DYNAMIC STANDING INSTRUCTION (SI) AND NACH MADATES FOR HOME AND
HOME RELATED LOANS
maximum debit amount in Dynamic SI/NACH mandates as 120% of applicable EMI, rounded
off to nearest 100 rupees for all HL & HR accounts.
Circular No NBG/SMEBU-SME ADVANC/33/2023 – 24 Date: Thu 28 Sep 2023

SME ADVANCES: NEW PRODUCT SBI SHAURYA MAAN: CLEAN OVERDRAFT
FACILITY TO URCs (DEFENCE CANTEENs)
Bank has designed a new product namely “Shaurya Maan (शौर्यमर्यमान)” to enable our
branches in the Defense Areas including Cantonments to grant Clean Overdraft facility to the
Unit Run Canteens for meeting their working capital needs, based on the simple assessment
of the cash cycle of the Canteen.
• Purpose: Unsecured OD facility to Defence Canteens of Armed Forces for financing the
procurement of supplies from Depots.
• Facility: Clean Overdraft.
• Banking Arrangement – Sole Banking
Loan amount: Min- Rs. 1 lakh, Maximum- Rs. 3 crores (Extendable upto Rs 5 cr)
Standby Lines of Credit- 25% of the regular limit (Can be availed thrice a year)
Circular No NBG/PBU/LIMATD/21/2023 – 24 - SBI WECARE Term Deposit

scheme
SBI WECARE Term Deposit scheme is extended till 31st March 2024. All other terms and
conditions shall remain unchanged.
Circular No CAG/CMP-GEN/9/2023-24 Date: Sat 30 Sep 2023
cash Management Product Operations Centre, Hyderabad is providing door step services to
CMP clients for Cash pickup. Bank is now introducing Vaulting and Merger services also in
addition to normal cash pick up services w.e.f 01.10.2023
439
440
441
Sl.No.: 537/2023 – 24 Circular No.: R&DB/BOD-INS/31/2023 – 24 Date: Sat 16 Sep

2023
BANKER’S INDEMNITY INSURANCE POLICY: RENEWAL FOR THE PERIOD 01.07.2023 TO
30.06.2024, POLICYNO:IA101447687 FROM GO DIGIT GENERAL INSURANCE LIMITED
Circular No: R&DB/AGNYBKGNACH/13/2023 – 24 Date: Thu 21 Sep 2023

NACH- PENALTY FOR HIGH %AGE OF ACH DEBIT RETURNS
As per Circular: Due to high % age of returns of ACH debit transactions, NPCI has
advised to take the following measures:
1. Restrict the representation of the returned transactions to 2 times (1 presentation +
2 representations).
2. Representation of a returned transaction can be done only after 3 days from the
date of return.
3. Representation to be done only after confirmation from the customer concerned on
the availability of balance.
4. In case of repeated returns:
a. User institutions should reach out to the customer and ensure that the presentation
is resumed only after confirmation is received from the customer for honoring the debit
transactions.
b. Destination banks should review the operation of the account, advise the customer
to maintain sufficient balance and in the event of no improvement follow the regulatory
guidelines for handling such accounts.
Phase I — With effect from 1st October 2023 : Additional charges of Rs. 1 per return
442
transaction to be levied on corporate with returns above 50%.

Phase Il — With effect from 1st January 2024: Rs- 5 per return transaction for
corporate with return above 50%. Additional Charges will be for transaction over and
above the threshold i.e. 5O%.
Phase Ill — with effect from 1st April 2024: The corporates with return transaction
above 30% will be barred from registering new mandates. The utility code will be
barred for registering further new mandates until the returns are brought down below
the 30% threshold.
Circular No.: NBG/PBBU/NRIGEN/13/2023 – 24 Date: Fri 8 Sep 2023

YONO: DIGITIZATION OF NRI (NON-RESIDENT INDIAN) ACCOUNT OPENING
THROUGH YONO
NRI (Non-Resident Indian) account opening process is made available on YONO SBI
App through self-assist journey. This product is only for New to Bank (NTB) customers
of the Bank, and they can open NRE/ NRO (Personal segment - Savings/ Current
Account) using YONO SBI App.
Customer selects the option whether he/she will personally visit a branch in India or
send the documents to Global NRI Centre (GNC), Ernakulam
Circular No.: NBG/SMEBU-SME ADVANC/29/2023 – 24 Date: Mon 11 Sep 2023

CONTACTLESS LENDING PLATFORM CLP MUDRA (For loans of Rs.1.00 lakh to
Rs.10.00 lakh) = SME E-SMART SCORE
As per Circular: Following are the salient features of CLP Mudra and E-Smart Score
products:
a. CLP Mudra and E-Smart Score products are applicable only for Sole Banking
arrangement.
b. Entire cash flows to be routed with SBI.
c. For the presumptive ITR and 1-year ITR, all the financial data (i.e., last three years
Audited /Unaudited) to be obtained from the applicant(s).
d. Branches to obtain project report from the applicants who have received in-principle
approval for Term Loan.
e. In case, Provisional Balance Sheet is submitted by the applicant, our Bank’s norms
relating to obtention of Provisional Balance Sheet (enumerated in e-circular no.
CCO/CPPD-ADV/54/2022 - 23 dated 20.08.2022 and other related instructions issued
by Bank from time to time) to be complied by the Branch functionaries viz.
i. The borrower should give a confirmation that the variation between actuals vis-à-vis
Provisionals will not be more than 10%.
ii. On receipt of the Audited Balance Sheet, the variations, if any, will be tested on the
four parameters viz., Sales, EBIDTA, Current Ratio, and TOL/Adj.TNW. A lumpsum
penalty of 0.50% of the sanctioned Working Capital limits (FBWC + NFBWC limits)
shall be levied, if actuals vary by more than 10% from the provisional numbers in more
than two of the above four parameters
All loans from Rs.1.00 lakh to Rs.500.00 lakh to be appraised in LLMS.
Circular No: NBG-AB-IC&GL/- INVESTMENT CREDIT/18/2023 – 24 Date: Mon 11

Sep 2023
National Institute of Agricultural Extension Management (MANAGE), Hyderabad has been
identified as Central Nodal Agency (CNA) for AIF scheme
Circular No.: NBG/SMEBU-SBI ABL/31/2023 – 24 Date: Wed 13 Sep 2023

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SME ADVANCES: NEW PRODUCT ABL SARAL
Circular No: R&DB/AGNYBKGRBI-I/11/2023 – 24 Date: Fri 1 Sep 2023

Subject: STAR SERIES BANKNOTES
Reserve Bank of India has clarified the validity of banknotes with a Star (*) symbol
present on the number panel and informed that the Star (*) symbol is inserted in the
number panel of a banknote that is used as replacement for defectively printed
banknotes in a packet of 100 pieces of serially numbered banknotes. A banknote with
a Star (*) symbol is identical to any other legal banknote, except that in the number
panel a Star (*) symbol is added between the prefix and the serial number. The Star
(*) symbol is an identifier that it is a replaced / reprinted banknote
Circular No R&DB/P&SPDEBITCARD/4/2023 – 24 Date: Fri 1 Sep 2023

SBI has collaborated with Google Pay and Samsung Pay to offer Device-Based
Tokenization of SBI Debit Cards in India.
Circular No.: DB&T/DT & eComm-YONO/8/2023 - 24 Date: Wed 6 Sep 2023

YONO BUSINESS - Revision of YB/CINB Pertransaction & Per-day Limits
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Circular No.: NBG/MEGSS/5/2023 - 24 Date: Tue 22 Aug 2023

SELF EMPLOYMENT SCHEME FOR REHABILITATION OF MANUAL
SCAVENGERS
(SRMS) REVISED GUIDELINES
Target Group scheme is to assist the manual scavengers - Scavengers and

their dependents of 18 year and above, irrespective of their
income, who are yet to be provided assistance for
rehabilitation, under any scheme of Government of India/ State
Governments.
Training ➢ Monthly stipend of Rs 3000 as per training period
subject to fulfilling of attendance (i.e. not less than 75
% ) and other terms and conditions in the training
programme.
➢ Receipt of Rs 3000/- stipend in the account of the
customer during training period is a pre- requisite for
selection of applicant.
➢ One time cash assistance of Rs. 40000/- to identified
manual scavenger to be provided by NSKFDC after
training.
Quantum of Finance For Individual Maximum Project cost of Rs.15.00 lakhs.
For SHG/Group Rs 10.00 lac per beneficiary Maximum Project
cost of Rs. 50.00 lakhs
Repayment The period of repayment of loan, including moratorium period
will be 5 years for the projects up to Rs. 5 lac and 7 years or
the projects above Rs. 5 Lac with a moratorium period to start
the repayment of loan will be up to 6 months
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Circular No.: NBG/MEGSS/7/2023 - 24 Date: Wed 23 Aug 2023

SBI E-RICKSHAW MODIFICATION
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Circular No.: R&DB/CM&CS - CS/1/2023 – 24 Date: Tue 22 Aug 2023

ECISIONS OF CONSUMER COMMISSION OR RBI OMBUDSMAN AGAINST THE
BANK – REPORTING MECHANISM FLASH REPORT
➢ In order to streamline the process of reporting and avoid delay in further action,
formats for flash reports to be submitted by the Circles have been introduced
➢ AGM (Banking Ombudsman) at Circle will ensure to submit the flash report
within T+3 days from the date of award passed by the Office of RBI
Ombudsman (ORBIO).
➢ Further, AGM (Customer Service) at Circle will ensure to submit the flash report
within T+3 days from the date of receipt of the order passed by the Consumer
Commission.
CIRCULAR NO.: CFO/FRT-SERTAX/5/2023 – 24 DATE: FRI 25 AUG 2023

GST COMPLIANCE- SALE OF REPOSSESSED GOODS
In order to ensure GST compliance by branches / BUs the following instructions are
reiterated:
➢ Branches are required to recover GST from the purchaser of assets, otherwise
Bank will have to bear the expenses for the GST amount payable to the
Government.
➢ Branches are required to capture the details of Assets repossessed and sold in
the iFAMS application and credit the GST amount to the specified BGL
4599102 (Branch Sys Suspense).
➢ Approval of reserve price for sale of repossessed assets shall include recovery
of GST component also
Circular No.: R&DB/OPS-KYC/KYC/5/2023 - 24 Date: Tue 22 Aug 2023

NON-INDIVIDUAL (ENTITY) CUSTOMERS IDENTIFICATION OF BENEFICIAL
OWNER(S) REVISED INSTRUCTIONS
Company :
“Controlling ownership interest” means ownership of/entitlement to more than 10
percent of the shares or capital or profits of the company.
Trust:
include identification of the author of the trust, the trustee, the beneficiaries with 10%
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or more interest in the trust,
Circular No.: NBG/PBU/AL-AUTOLOAN/5/2023 – 24 Date: Wed 30 Aug 2023

SBI TWO WHEELER LOAN -MODIFICATIONS
• Salaried: Net Monthly Income of applicant should be ₹ 10,000 and above
• Pensioners: Net Monthly Income of applicant should be ₹ 10,000 and above
and maintaining pension account with us. Copy of PPO to be taken.
• Self-employed, Professionals, Proprietor, Partner, and other IT assesses
including businessmen & traders: ₹ 1.50 lakhs p.a. as per ITR (i.e., Net Profit/
Taxable income Less Taxes payable, if any).
• Agriculturists: Net annual income of ₹ 1.50 Lacs.
• Min Loan: ₹ 0.50 lakh Max Loan: ₹ 3.00 lakh Subject to maximum 6 times of
Net Monthly Income and applicable EMI/NMI Ratio
• CIC Score : Salaried package account customers: Minimum 650 and NTC*.
Others: Minimum 700 and NTC
• 50 bps Concession in interest rate for applicants purchasing Electric Two-
Wheeler vehicles
• Vehicle to be insured for 1 year own damage and 5 years third party insurance
upfront with hypothecation clause in favour of the Bank.
NBG/PB/CÎTU-CSP/5/2023 – 24 - Date: Sat 19 Aug 2023

(CSP) INTRODUCTION OF FEATURE-LOADED DEBIT CARDS ON RUPAY
PLATFORM FOR ACCOUNTS UNDER CORPORATE SALARY PACKAGE
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Circular No.: NBG/SMEBU-GEN. CREDI/22/2023 – 24 Date: Sat 19 Aug 2023

NAME FROM SME CREDIT CARD TO SME LAGHU UDYAMI
➢ SME Credit Card will now be known as SME Laghu Udyami.

➢ Frequency of Inspection: Yearly intervals by Bank officials.
➢ Quarterly intervals by authorized Representative.
➢ Rate of Interest: EBR + 3.25%
➢ Margin: Up to Rs 50000 - NIL ; Rs 50001 to Rs 10 lacs - 10%.
NBG/SMEBU-SME SMART/27/2023 – 24 Date: Sat 19 Aug 2023

SME SMART SCORE MODIFICATIONS PROPOSED IN PRODUCT FEATURES
➢ Collateral Security: All accounts to be covered under CGTMSE and no

collateral Security should be obtained.
➢ Guarantee fee is to be borne by the borrower or as per the instructions of Bank
issued from time to time.
➢ Stock Statement: Bi-monthly
➢ Inspection: CUE Lite 1-8 or Score of 70 & above: Yearly intervals by Bank
officials. Quarterly intervals by Authorized Representative.
➢ CUE Lite 9 & below or score below 70: Half-yearly intervals by Bank officials.
➢ Quarterly intervals by Authorized Representative.
➢ Type of facility: Dropline Overdraft / Cash Credit / Term Loan OR Combination
of these facilities.
➢ Quantum of Finance: Minimum: above Rs. 10 lakhs, Maximum: below Rs. 50
lakhs
Circular No NBG/CVE-BU/SBI General/18/2023 – 24 Date: Thu 3 Aug 2023

Personal Accidental Insurance (PAI) Plus Product Enhancement at same
premium
➢ SBI General has now made certain enhancements by adding 5 new features,
along with current accidental death cover, as under:
➢ Permanent Total Disability (PTD)
➢ Child Education Cover up to maximum of 1% of Accidental Death’s Sum
Insured or Rs 20,000/- whichever is lower for First & Second child of insured
member (in case of death or PTD admissible claim)
➢ Repatriation and Funeral Expenses – 1% Accidental Death’s Sum Insured,
subject to maximum of Rs 10,000/-.
➢ Adaptation Allowance (Home & Vehicle) – 1% Accidental Death’s Sum Insured
subject to a maximum of Rs 20,000/- in case of PTD admissible claim.
➢ Ambulance Cover – 1% Accidental Death’s Sum Insured up to a maximum of
Rs 1500/- per incident / accident towards admissible claim of Death or PTD.
These additional features will be offered to the Bank customers at no additional
cost and the enhanced version of the PAI has been named as PAI Plus
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Circular No.: NBG/PBU/ALAUTOLOAN/4/2023 – 24 Date: Wed 26 Jul 2023

PERSONAL BANKING: AUTO LOANS INSURANCE COVERAGE
The Competent Authority has approved the revised Instructions regarding Insurance
Coverage, which are as under:
➢ New vehicle should be insured for 95% of Ex-showroom price irrespective of
loan amount.
➢ In case of old/used vehicles IDV (Insured Declared Value) as prescribed by
IRDAI to be used for insurance of vehicles
NBG/RE,H&HDHL/14/2023 – 24 Date: Wed 26 Jul 2023

HOME & HOME RELATED LOANS - MODIFICATION IN OPERATING
INSTRUCTIONS
Circular No.: CCO/CPPDADV/23/2023 - 24 Date: Fri 9 June 2023

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NON-PERFORMING ASSETS QUICK MORTALITY ACCOUNTS.

The revised guidelines are furnished as under:
I. PER segment loans –
I. OD - Accounts which have been sanctioned and disbursed and have slipped to
NPA within one year from the date of initial sanction.
II. DL/TL - Accounts which have slipped into NPA within one year from the
commencement of repayment of loan
II. Other than PER segment loans (Incl. REH loans) –
I. CC/OD accounts- Accounts which have been sanctioned and disbursed and
have slipped to NPA within two years from the date of initial sanction.
II. DL/TL accounts - Accounts which have been sanctioned and disbursed and
have slipped to NPA within two years from the date of commencement of
repayment of loan.
Circular No.: NBG/FI & MM/BC/CSP/8/2023 – 24 Date: Thu 1 Jun 2023

FINANCIAL INCLUSION - HANDLING UNAUTHORISED/FRAUDULENT AePS
TRANSACTION IN BC CHANNEL: REVISION IN TAT
Circular No.: NBG/NBG/AC-NBGATM/1/2023 – 24 Date: Fri 2 Jun 2023

OTP BASED CASH
The amount for OTP based cash withdrawal facility at SBI ATMs / ADWMs has been
revised from ₹ 10,000/- and ABOVE to ABOVE 10,000/- ₹ w.e.f. 13.04.2023.
452
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➢ “SIMPLIFIED SMALL BUSINESS LOAN (SSBL) – Product discontinued

➢ It has been decided to observe 1st August 2023, as “KYC Compliance and
Fraud Prevention Day”
➢ Now SB Collect facility is enabled for SARAL and KHATA CINB users also
➢ Liquid Gold loan min amount of loan was increased to Rs.1.00 lac from existing
level of Rs. 20,000 /-
➢ For Home Top up loan, For calculation of LTV, Upward revision in Realizable
Value of the property can be considered only after 1 year from the date of
sanction of Home Loan or sale deed execution date, whichever is later
➢ The facility of Tiny RD and Tiny STDR will not be available for account holders
of BSBD Full KYC (Minor) savings product (1611- 1441). Existing Tiny RD and
Tiny STDR accounts opened by Full KYC Minor savings account holders shall
continue till their maturity
➢ Non-dispensation of cash to customers due to Cash-out at any ATM /ADWM
terminal for more than 10 hours in a month will attract a flat penalty of ₹10,000/-
per terminal per month by RBI. For proper accounting of cash out penalty levied,
a new BGL account No. 4696495 has been opened in the style “Chgs- Penalty
by RBI & Stat Body for ATMs
➢ For all overseas remittances, except medical and educational purposes,
exceeding a threshold limit of Rs. 7 lacs in a financial year, will be subject to a
TCS of 20% w.e.f 01.10.2023
The process of collection of KYC documents of the account holders needs to be done
only by the Branch officials and not by the employees of Bank’s Subsidiary
Companies and employees of Outsourced Service Providers.
Exclusion of “Abu Dhabi Commercial Bank PJSC” from the Second Schedule to the
Reserve Bank of India Act, 1934
Purchase of Foreign travel card
(FTC) by students availing education loans for studies abroad will be mandatory and
minimum 25% of living expenses should be disbursed through FTC
Ministry of Finance has notified that the upper limit for deposit in Senior Citizen’s
Savings Scheme (SCSS) is revised. These instructions are applicable to existing as
well as new SCSS accounts (Overall limit should not exceed Rs 30 Lakhs (15 lakhs
erstwhile Limit).
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SARVOTTAM (NON-CALLABLE) DOMESTIC TERM DEPOSIT-- It has now been decided

to remove cap on maximum limit for Non-callable Domestic Bulk Term Deposit.
KYC updation through digital mode-Where there is no change in KYC information, The
process flow of the above channels with the screen shots have been placed in the
Banks website https://bank.sbi > Information services> Misc Services > KYC
Updation through INB/ATM/YONO
When there is change in KYC information,
• Customers who have undergone Aadhaar based e-KYC authentication and wants to
provide a different current address, only a self-declaration to that effect is accepted.
• For all other customers Self-declaration along with a copy of an OVD with current
address is obtained from the customer. Self-declaration shall be obtained from
customer, either through i. Customer visiting the Branch, or ii. Customer’s email-id
registered with the Bank, or iii. Letter iv. Other digital channels.
CGTMSE-Modifications-Increase in Max limit to Rs.5.00 Cr, Decrease in guarantee fee,
Increase in waiver of legal action upto Rs.10.00 lacs.
The Appropriate Authority has accorded approval to sunset the Arthias (Commission
Agent) Current Account Product variant.
Bank has approved the revised Locker Agreement for existing locker hirers who have
not signed Agreement and issued Supplementary Agreement for locker-hirers who
have signed revised Agreement.
INTRODUCTION OF new current account product variant FOR GOVERNMENT
DEPARTMENTS, AUTONOMOUS BODIES, STATUTORY BODIES & DEFENCE-PARA
MILITARY ESTABLISHMENTS.
Continuation of SUNIYANTRAN campaign for the financial year 2023-24 also.
A new report has been introduced –containing an exclusive feedback from “Women
Branch Manager(s)” on “Internal Auditor(s)” behaviour would be obtained within 7
days of closure of RFIA.
Approval to be obtained from CM(Ops) at RBO/AO for cancellation of any stale
instrument (Bankers cheque-including reported lost) for amount greater than 50,000/-
(Rupees fifty thousand only) and all ₹ instruments in case of payment to legal heirs of
deceased holder of instrument, irrespective of the amount.
Roof Top Solar Systems in households are gaining significant share in overall energy
installations, due to rising energy consumption and high electricity tariffs. Therefore,
to tap the potential available in financing such projects in the Personal Segment, a
new Loan Product titled as “Solar Roof Top Finance” has been developed by the
Bank.
Processing fee Waived for all DSP, CAPSP and ICGSP Pensioners for pension loan upto
30.06.2024.
BITS LAW SCHOOL [UNDER THE AEGIS OF BITS SCHOOL OF MANAGEMENT
(BITSoM)] has been included in SBI SCHOLAR LOAN SCHEME.
Modifications under SBI RISHTEY- NIL Debit card AMC charges, 10% concession on
Annual Locker Rental, Unlimited free transaction of SBI as well as other banks’ ATM,
PAI cover upto 5.00 lacs(Except Minor).
the total outstanding in Agri Gold Loan account plus accrued
interest should not exceed 90% of current value of gold ornaments and jewellery
pledged to the Bank.
Ministry of Finance, Department of Economic Affairs, Government of India, has issued

notification on Mahila Samman Savings Certificate, 2023 vide their Notification dated
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31.03.2023. An application for opening an account under this Scheme shall be made
by a woman for herself, or by the guardian on behalf of a minor girl to the Branch, on
or before 31st March 2025.
With a view to deepen our relationship with Home Loan borrowers, and improve our
Product per Customer (PPC), we have collaborated with SBI Card for issuing ‘Happy
Home Card’ to existing and new Home Loan borrowers, subject to fulfilment of
eligibility criteria of SBI Credit Card.
Beneficial owners’ stake % for companies, partnership and Trusts as 10%.
PERSONAL BANKING ADVANCES XPRESS CREDIT, PENSION LOAN & AUTO LOAN
SCHEMES PROCESSING FEE WAIVER DURING FESTIVE SEASON TILL 31.01.2024.
Back to Index page

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QUICK RECAP / ONE LINER POINTS

RECAP PAPER - 1
1) EASE is based on……..action points.
A) 61 B) 62 C) 63 D) 64 E) 65
2) CERSAI has been set up under which Act.
A) SARFAESI-act B) CGTMSE act C) Transfer property act
D) Registration act E) CERSAI Ac
3) Bullion Dealers are categorized in as per KYC guidelines.
A) High RISK B) Medium RISK C) Low RISK
D) Moderate RISK E) None of the above
4) Maximum project cost for Business (Service Sector) Under PMEGP scheme.
A) Rs.20 lakh B) Rs.15 lakh C) Rs.10 lakh
D) Rs.18 lakh E) Rs.50 lakh
5) CRR is defined under.
A) Section 31 of RBI Act B) Section of 35 of RBI Act
C) Section 42 (1) RBI Act D) Section of 35 of BR Act
E) None of the above
6) Cash payment of Rs.20,000 and above in case of FDR is restricted under
which Act.
A) IT act – u/s 269 T B) IT act – u/s 296 T
C) RBI act – u/s 269 T D) BRA act – u/s 269 T
E) There is no such restriction
7) Protection to Paying Bank in case of material alteration.
A) NI act U/s 98 B) NI act U/s 89 C) NI act U/s 198
D) NI act U/s 133 E) NI act U/s 138
8) Regulatory authority of Mutual Funds.
A) SEBI B) RBI C) IRDA
D) FICCI E) MFAI
9) Bank rate is.
A) RBI grants loans to Government
B) Banks receives interest on their CRR deposit
C) RBI lends money to other banks or financial institutions
D) Banks extend loans at this rate to their prime customers
E) None
10) SWIFT is.
A) It is remittance package created by RBI
B) This is unique gate way provide to NRIs
C) It is a platform to remit money from overseas
D) Society for Worldwide Interbank Financial Telecommunication
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11) START-UP INDIA.

A) Started by Government of India with Initial corpus 2500 Cr.
B) Total corpus of 10000 Cr for 4 years
C) Promoting bank financing for start-up ventures to boost entrepreneurship and
encourage startups with jobs creation
D) All the above E) None of the above
12) Cash kept in currency chest is owned by.
A) Currency chest branch B) SBI
C) RBI D) Respective state government E) Respective Bank
13) Stand by Letter of credit (L/C) is like a ………….
A) Bank guarantee B) LC issued by PSB
C) Letter of comfort D) Red clause LC
E) Revolving LC
14) Minimum amount can be remitted through RTGS is.
A) No cap B) 50000 C) 2 lakh
D) 1 lakh E) 5 lakh
15) In CTS, Image Replace Document (IRD) means.
A) An authenticated copy of a cheque B) Cheque sent for collection
C) Truncated cheque D) Cheque received for collection
16) What is present rate of interest RBI pays on CRR balance.
A) Bank rate B) 4% C) NO interest
D) Repo E) 3.50%
17) CRR is maintained on ………...
A) NDTL (net demand & time liabilities) B) Gross loans & advance
C) Gross deposit D) CASA deposit
E) Incremental Deposit
18) Under Agri Clinic scheme the maximum loan limit for individual is.
A) 20 lac B) 10 lac C) 30 lac D) 50 lac E) 25 lac
19) Unspent foreign currency can be retained up to.
A) 6 months B) 3 months C) 9 months
D) 12 months E) 24 months
20) DSCR is.
A) Debt service coverage ratio B) Debt service current ratio
C) Debt support coverage ratio D) Debenture service coverage ratio
21) Current ratio is 4:1, NWC Rs.60000. find the amount of Current asset.
A) 20000 B) 80000 C) 48000
D) 12000 E) 40000
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22) Banking is defined in.

A) BR Act 5 (b) B) BR Act 5 (n) C) RBI 5 (n)
D) RBI 5 (b) E) KYC-AML Act
23) Break Even Point (BEP).
A) Point of No profit No loss
B) Point where Company starts witnessing loss
C) Threshold limit of company fixed by ROC at time of registration
D) Point of sales where all the variable cost of the unit is recovered
24) Under Special Crossing, protection to bank is available under Section.
A) 125 of NI act B) 128 of NI act C) 124 of NI act
D) 126 of NI act E) 135 of NI act
25) Who is regulator of Export & Imports?
A) DGFT (Director General of foreign trade)
B) DGEI (director General of Export & Imports)
C) Director General EXIM
D) Dy Governor of RBI
E) None
26) What is noting?
A) Dishonored B/E noted from notary
B) Noting on the back of cheque by drawer
C) Certificate issued by Notary public
D) Anything noted down on back of cheque
E) None
27) Current account operated by finance director dies. Status of the cheque
signed by him.
A) Can be paid B) Return with note – drawer diseased
C) Can be paid subject to ratification by members
D) Can be paid if cheque is presented within one month of demise
E) None
28) Banker customer relationship in standing instruction.
A) Agent: principal B) Debtor: creditor
C) Lessor: lessee D) Bailer: Bailee
E) Principal: Agent
29) Abbreviation for UCPDC.
A) Uniform customs & practices for documentary credit
B) Uniform codes& practices for documentary credit
C) Uniform customs & procedures for documentary credit
D) Uniform customs & practices for domestic credit
E) Uniform practices for documentary credit
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30) FCNR (B) deposit.

A) CASA deposit B) Only term deposit
C) Time & demand deposit D) High cost deposit
E) Only in Current Deposit
31) Under RTI person seeking information must provide.
A) Reason to get the information
B) Reason is not required to mention
C) Written request in stamp paper
D) Service charge to the institution
E) Application to be routed through advocate
32) BCSBI newsletter is known as.
A) Service matters B) Customer Matters
C) Consumer is king D) BCSBI darshan
E) No such newsletter
33) Protection to the Paying Bank in case of alteration in a cheque is available
under.
A) Sec 85 of NI act B) Sec 89 of NI act
C) Sec 90 of NI act D) Sec 98 of NI act
E) No protection is available
34) Under RE-KYC the Period of KYC updating in case of high Risk customers.
A) 2 years B) 8 years C) 10 years
D) 3 years E) No fix period
35) Agency which purchases NPA from banks is called.
A) Asset recovery company
B) Asset reconstruction Company
C) NPARC- NPA recovery cos.
D) Asset rehabilitation company
E) None
36) What is shishu?
A) This is first category under MUDRA scheme where up to 50000/ loan limit can be
financed
B) This is loan product designed by our bank for minors
C) Online portal for student to open ZERO balance account
D) Deposit account up to Rs.50000
E) None
37) Maximum deposit in PPF in a financial year.
A) Rs.500000 B) Rs.100000 C) Rs.150000
D) Rs. 50000 E) Rs.250000
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38) When a farmer in addition to agriculture is engaged in rearing of farm stock

it is called.
A) Mixed farming B) Allied farming C) Livestock farming
D) Join farming E) Integrated Farming
39) Maximum period of FCNR (B) deposit.
A) 3 years B) 5 years C) 2 years
D) 10 years E) 7 years
40) What type of charge is created on LIC policy?
A) Lien B) Pledge C) Assignment
D) Simple mortgage E) Hypothecation
41) Target for Weaker section loan are ___ % of ANBC.
A) 10 B) 5 C) 15
D) 12 E) 7
42) Final date for implementation of Basel III in India?
A) 01.01.2019 B) 31.03.2019 C) 31.03.2018
D) 01.01.2018 E) 31.03.2020
43) Safe custody of Articles is covered under which Act.
A) Indian Contract Act
B) India safety act
C) Transfer property act
D) NI act
E) BR Act
44) Pari-passu charge is.
A) Fixed charge
B) Floating charge
C) Charge due to GOVT dues
D) Charge on current assets
E) Charge in favor of many creditors on equal footing
45) Expand MUDRA.
A) Micro units’ development & reconstruction account
B) Major units’ development & Refinance Agency
C) Micro Units Development and Refinance Agency
D) Managing units for development and reconstruction Agency
E) Micro Units Refinance Agency
46) CGTSME has been set up by.
A) Govt. of India B) SIDBI C) RBI
D) SBI E) A & B jointly
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47) If Garnishee Order is received without description of amount,

A) Full amount to be attached
B) Ask clarification immediately from court regarding amount
C) Issue a notice to customer about the order & amount if any notice is received by
him
D) Account not be attached till clarity about the amount
E) None
48) Minimum deposit to open BSBDA account is.
A) Nil B) 100 C) 500
D) 50 E) 250
49) NPCI has developed the following infrastructure to suit all banks
requirement which is not correct?
A) Unified payment system (UPI)
B) Indian money Payment services (IMPS)
C) National Automated clearing house (NACH)
D) Bharat Bill Payment System (BBPS)
50) Maximum amount of claim that can be filed in Lok Adalat.
A) 20 lakh B) 10 lakh C) 05 lakh
D) 12 lakh E) Any amount
ANSWERS:
Qn. 1 2 3 4 5 6 7 8 9 10
Ans. B A A C C A B A C D
Qn. 11 12 13 14 15 16 17 18 19 20
Ans. D C A C A C A A A A
Qn. 21 22 23 24 25 26 27 28 29 30
Ans. B A A C A A A A A B
Qn. 31 32 33 34 35 36 37 38 39 40
Ans. B B B A B A C A B C
Qn. 41 42 43 44 45 46 47 48 49 50
Ans. A B A E C E A A A A
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RECAP PAPER - 2
1. In case LC is received, within how many days one has to examine the export
documents submitted under LC?
a) 5 banking days b) 7 banking days
c) 5 days d) 7 days
2. A deposit is treated as unclaimed after a period of ……………

a) 5 years. b) 7 years.
c) 10 years. d) 20 years.
3. Which banker gets protection under section 85 of Negotiable Instrument Act, 1881?
a) Collecting banker. b) Paying banker.
c) Issuing banker. d) Both a and b.
4. Any resident Indian May hold foreign currency notes/ coins to the extent of ……......
a) Up to USD 1000 including notes and coins or its equivalent.
b) Up to USD 1000 notes and USD 1000 coins.
c) Up to USD 2000 including notes and coins or its equivalent.
d) Up to USD 2000 notes and coins up to any limit.
5. Margin in case of agriculture advance up to a limit of 100000 is ……………

a) 5% b) Nil
c) 10% d) 15%
6. Hypothecation is defined in …………..

a) SARFAESIA Act, 2002 b) Indian Contract Act , 1872
c) NI Act ,1881 d) RBI Act
7. Town official language implementation committee meet is conducted once in………

a) a month b) 3 months
8. Which of the following is negotiable instrument?

a) promissory note b) return receipt
c) fixed deposit d) airway bill
9. Who are the owners of a public limited company?

a) Directors of the company b) Shareholders
c) Government Of India d) None of the above
10. Which act defines safe custody?

a) Indian Contract Act 1872 b) NI Act, 1881
c) Not defined in any act d) RBI Act
11. Preservation of records for how many years is mandatory under RTI act 2005?
12. For initiating recovery proceedings under SARFAESI Act, the minimum amount
outstanding in the account should be rupee…………..
a) 2.00 lakh b) 5.00 lakh
c) 1.00 lakh d) 0.50 lakh
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13. Term deposit of Rupees 20000 or more is not paid in cash under provisions of
which act?
a) Income Tax Act 1961 b) RBI Act
c) Indian Contract Act , 1872 d) None of the above
14. What rate of interest is allowed by RBI on CRR balances maintained with it?
a) 2.5% b) 2.75%
c) 1.25% d) Nil
15. A contract of insurance is a contract of……….

a) security b) guarantee
c) indemnity d) none of the above
16. Unstamped document cannot be rectified in case of………..

a) Mortgage deed b) Sale deed
c) partition deed d) none of the above
17. The minimum amount withdrawal by cheque from a savings account is rupees…..
a) 2 b) 1
c) 5 d) 10
18. Provisions of SARFAESI are applicable to which of the following?

a) Pledge of goods b) Only mortgage properties.
c) Securities that are not otherwise charged to the creditors.
d) Security is charged to creditors and not in possession of the creditor.
19. What is an impersonal Collateral security?

a) Security in the shape of intangible.
b) Collateral security given by third party.
c) Guarantee provided for securing the death.
d) Collateral security given by the borrower but in the shape of goodwill and
trademark
20. Which committee recommended turnover method for Small Scale Industry?
a) Nayak Committee. b) Tandon Committee.
c) Narsimhan Committee. d) Ghosh Committee.
ANSWERS
Ques.No 1. 2. 3. 4. 5. 6. 7. 8 9 10
Ans. a c b d b a c a b a
Ques No 11 12 13 14 15 16 17 18 19 20
Ans. b c a d c d c d b a
464
KEY HIGHLIGHTS OF UNION BUDGET 2023
• The Budget 2023-24 has been presented with seven priorities. They complement each
other and act as the ‘Saptarishi’ guiding India through the Amrit Kaal. The seven priorities
are: (i) Inclusive Development, (ii) Reaching the Last Mile, (iii) Infrastructure and
Investment, (iv) Unleashing the Potential, (v) Green Growth, (vi) Youth Power, and
(vii) Financial Sector. The entire budget is structured towards these priorities.
• The total dividend from the Reserve Bank of India, nationalised banks and financial
institutions is estimated at Rs 48,000 crore for FY24, almost 17% higher than revised
estimated of FY23 (Rs 40,953 crores). Though, the FY23 BE was Rs 73,948 crore. We
expect that the FY23 estimates could be overshot.
• The rebate limit in the new tax regime has been increased to ₹ 7 lakh, meaning that
persons in the new tax regime with income upto ₹ 7 lakh will not have to pay any tax. The
tax structure in the new personal tax regime has been changed by reducing number of
slabs to five and increasing the tax exemption limit to ₹ 3 lakh. This will provide major relief
to all tax payers in the new regime. The highest surcharge rate in personal income tax
has been reduced from 37% to 25% in the new tax regime for income above ₹2 crore.
This would result in maximum tax rate of personal income tax come down to 39% which
was earlier 42.74%.
• Leave encashment limit increased from Rs. 3,00,000 to Rs. 25,00,000.
• The benefit of standard deduction has been extended to the salaried class and the
pensioners including family pensioner under the new tax regime. Salaried individual will
get standard deduction of ₹ 50,000 and pensioner ₹ 15,000 as per the proposal.
• The maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from
Rs 15 lakh to Rs 30 lakh. The maximum deposit limit for Monthly Income Account
Scheme will be enhanced from Rs 4.5 lakh to Rs 9 lakh for single account and from Rs 9
lakh to Rs 15 lakh for joint account.
• The indirect tax proposals announced in the budget has emphasized on simplification of
tax structure with fewer tax rates so as to help in reducing compliance burden and
improving tax administration. The number of basic customs duty rates on goods, other
than textiles and agriculture, have been reduced from 21 to 13.
• For better targeting of tax concessions and exemptions, deduction from capital gains on
investment in residential house has been capped at ₹ 10 crore. Revenue of about ₹38,000
crore will be foregone as a result of changes in the direct and indirect taxes, while revenue
of about ₹3,000 crore will be additionally mobilised.
• Digital public infrastructure for agriculture will be built as an open source, open standard
and inter operable public good. An Agriculture Accelerator Fund will be set-up to
encourage agri-startups by young entrepreneurs in rural areas.
• The agriculture credit target will be increased to Rs 20 lakh crore with focus on animal
husbandry, dairy and fisheries.
• The Government has decided to continue the 50-year interest free loan to state
Governments for one more year to spur investment in infrastructure and to incentivize
them for complementary policy actions, with a significantly enhanced outlay of Rs 1.3 lakh
crore.
• A capital outlay of Rs 2.40 lakh crore has been provided for the Railways, which is the
highest ever outlay and about 9 times the outlay made in 2013-14.
• 100 critical transport infrastructure projects, for last and first mile connectivity for ports,
coal, steel, fertilizer, and food grains sectors have been identified and they will be taken
up on priority with investment of Rs 75,000 crore, including Rs 15,000 crore from private
sources. 50 additional airports, heliports, water aerodromes and advance landing grounds
will be revived for improving regional air connectivity.
• An Urban Infrastructure Development Fund (UIDF) will be established through use of
priority sector lending shortfall, which will be managed by the National Housing Bank,
and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.
465
• For enhancing ease of doing business, more than 39,000 compliances have been
reduced and more than 3,400 legal provisions have been decriminalized. For furthering
the trust-based governance, Government has introduced the Jan Vishwas Bill to amend
42 Central Acts.
• For realizing the vision of “Make A-I in India and Make A-I work for India”, three centres
of excellence for Artificial Intelligence will be set-up in top educational institutions.
• An Entity DigiLocker will be set up for use by MSMEs, large business and charitable trusts
for storing and sharing documents online securely, whenever needed, with various
authorities, regulators, banks and other business entities.
• The Budget builds on the focus on green growth. The recently launched National Green
Hydrogen Mission, with an outlay of Rs 19,700 crores, will facilitate transition of the
economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the
country assume technology and market leadership in this sunrise sector. The target is to
reach an annual production of 5 MMT by 2030. The Budget also provides Rs 35,000 crore
for priority capital investments towards energy transition and net zero objectives, and
energy security by Ministry of Petroleum & Natural Gas.
• The Inter-state transmission system for evacuation and grid integration of 13 GW
renewable energy from Ladakh will be constructed with investment of Rs 20,700 crore
including central support of Rs 8,300 crore.
• 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro
Resources Dhan) scheme will be established for promoting circular economy. These will
include 200 compressed biogas (CBG) plants, including 75 plants in urban areas, and 300
community or cluster-based plants at total investment of Rs 10,000 crore.
• Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched to skill lakhs of youth within
the next three years. On-job training, industry partnership, and alignment of courses with
needs of industry will be emphasized. The scheme will also cover new age courses for
Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft
skills.
• To provide stipend support to 47 lakh youth in three years, Direct Benefit Transfer under
a pan-India National Apprenticeship Promotion Scheme will be rolled out.
• The budget has proposed revamping of the credit guarantee scheme for MSMEs and
has announced that the revamped scheme will take effect from 1st April 2023 through
infusion of Rs 9,000 crore in the corpus. This will enable additional collateral-free
guaranteed credit of Rs 2 lakh crore. Further, the cost of the credit will be reduced by about
1%.
• A National Financial Information Registry will be set up to serve as the central repository
of financial and ancillary information. This will facilitate efficient flow of credit, promote
financial inclusion, and foster financial stability.
• Atma nirbhar Clean Plant Program with an outlay of ₹2200 crore to be launched to boost
availability of disease-free, quality planting material for high value horticultural crops
• 157 new nursing colleges to be established in co-location with the existing 157 medical
colleges established since 2014.
• iGOT Karmayogi, an integrated online training platform, launched to provide continuous
learning opportunities for lakhs of government employees to upgrade their skills and
facilitate people-centric approach
• For commemorating Azadi Ka Amrit Mahotsav, a one-time new small savings scheme,
Mahila Samman Savings Certificate, will be made available for a two-year period up
to March 2025. This will offer deposit facility upto Rs 2 lakh in the name of women or girls
for a tenor of 2 years at fixed interest rate of 7.5% with partial withdrawal option
466
One liner – Recap 3
✓ A crop will be called short duration crop if its crop season is up to: 12 months
✓ A savings account becomes inoperative when it not operated for: 2 years
✓ Bailment of goods or securities to secure a debt is called: Pledge
✓ Borrowing powers of director or board i.e. the extent to which Directors can
borrow is given in: Articles of association
✓ Deferred Payment guarantee is: Financial Guarantee
✓ DSCR indicates: Ability of firm to repay term loan instalments
✓ Finance against receivables means: FACTORING
✓ How much amount can be remitted abroad by a resident individual under
Liberalized Remittance Scheme: USD 250000 in a financial year
✓ Insurance amount under Rupay card by NPCI is: Rs. 1.00 lac (Rs 2 lac for
premium card)
✓ Limitation period for filling suit in respect of mortgage is: 12 years
✓ Notice money vary from 2 to day: 14 days
✓ PMJDY OD is upto: Rs. 10,000/-
✓ The charge on stocks is created by: Hypothecation (also by pledge or lien)
✓ Under PM Shram Yogi Maan Dhan (PMSYM), an unorganized sector worker
within age group of is eligible:18 to 40 years
✓ Lock in period of PPF account: 15 years
✓ maximum amount of award that can be given by Banking Ombudsman in case
of credit cards: Rs 1 lakh
✓ What is the maximum amount of claim that can be referred to Lok Adalat? Rs
20 lakh
✓ Type of charge is created on Life Insurance Policy: Assignment
✓ A charge where there is neither the transfer of ownership nor the possession
is: Hypothecation
✓ Section 131 of Negotiable instrument Act– Protection to collecting banks
✓ Statutory Liquidity Ratio is maintained as per: section 24 of Banking
Regulation Act.
✓ Return of securities on repayment of loan: Within 15 days of repayment
✓ The National CDRC will hear complaints worth more than Rs. 10 crores under
COPRA (Consumer Protection Act, 2019)
✓ Contributions made into the Atal Pension Yojana are eligible for tax deduction
under Section 80CCD of Income Tax Act.
✓ Minimum amount for Transfer using RTGS is Rs. 2.00 lakh (Two lakh).
467
✓ A small enterprise, where the investment in plant and machinery or

equipment does not exceed ten crore rupees and turnover does not exceed fifty
crore rupees; and
✓ Priority sector lending targets for Micro enterprises is 7.5%.
✓ Risk weight on credit cards is 100%
✓ As per BASEL 3 capital conservation buffer is 2.5% of RWA
✓ Issuance of 60 days Demand Notice is as per Section 13(2) of
SARFAESIA,2002.
✓ Special crossing: Writing name of a bank on a cheque with or without two
parallel lines.
✓ Within how many days of deposit of title deeds, charge is required to be
registered with CERSAI? 30 days.
✓ Full form of BCSBI: Banking Codes & Standards Board of India
✓ Financial Year 2021 fiscal deficit target at 3.5% of GDP
✓ Scale of Finance i.e. crop loan per hectare is decided by: District Level
Technical Committee
✓ Doubtful: An asset which has remained in Sub Standard category for a
period of 1 years becomes Doubtful thereafter.
✓ Provisioning for Loss asset is : 100% of outstanding amount
✓ Full form of TReDS: TRADE RECEIVABLE DISCOUNTING SYSTEM
✓ Current Ratio = Current Assets/Current Liabilities.
✓ Loans to individuals for educational purposes, including vocational
courses, not exceeding ₹ 20 lakh will be considered as eligible for priority sector
classification
468
Quick recap – 4
➢ Garnishee Order is issued by ......... and bank is ……..of the

Judgement Debtor Court, Debtor.
➢ Registration of document (other than will) within a period of: 4 months.
➢ Banking Ombudsman: maximum award to be passed: Rs. 2 million.
➢ Borrowing powers of director or board i.e. the extent to which Directors
can borrow is given in: Articles of association
➢ In CGTMSE, for loans from Rs. 5.00 lac to Rs. 50.00 lacs, what is the
claim percentage: 75%, Rs. 37.50 lacs (80% in case of
women & north east)
➢ Frauds of Rs 10,000 & above but below Rs 0.1 million: State Police; to
the local police station
➢ Maximum loan amount for renewable energy for classification as PS is:
Rs.5.00 cr
➢ Maximum loan amount for social infrastructure for classification as PS:
Rs. 5.00 cr
➢ Loans up to which amount for artisans, village and cottage industries to
be classified under weaker sections: Rs. 1.00 lacs
➢ As per official language policy, where participants in a training program
are from regions ‘A’ and ‘B’, the training may be imparted in:
Hindi.
➢ What is the maximum loan amount under Stand up India scheme?
Rs.100.00 lacs
➢ As per latest RBI guidelines, DD of Rs. 20000/- and above to be issued as:
A/c payee crossing
➢ Overdue of loans from 61 to 90 days is: SMA2
➢ ABC are partners of a firm X. Firm has availed loan of Rs. 2, 00,000/- and
one of the partner died when the liability is Rs. 2.00 lacs. After the
death of a partner, credit of Rs. 2.00 lacs and debit of Rs. 1.50
lacs happened in the account. What is the liability of the legal heirs of
the deceased partner as per Claytons rule: No liability
➢ Partner’s liability – Joint and Several, Unlimited.
➢ Who is a Resident? People staying in India for > 182 days in previous
financial year.
➢ PMMY Shishu loans upto: Rs. 50000/-
➢ At national level, APY is monitored by: Pension Fund Regulatory
and Development Authority
469
➢ RBI prescribes CRR as per: Sec 42(1) RBI Act.

➢ Utkarsh bank get approval for: SMALL FINANCE BANK
➢ Uniform savings bank rate by RBI upto: 1 Lakh
➢ CGFMU for which scheme: Credit Guarantee Fund for Micro Units
(CGFMU) was notified by Govt. on 18th April 2016 and has
been made effective retrospectively for loans sanctioned: Shishu
Loans: covering loans upto Rs 50,000/-; Kishor Loans: covering
loans above Rs 50,000/- and upto Rs 5 lakh; Tarun Loans
➢ Frauds of Rs. 0.1 million and above involving outsiders and bank staff: To
the State CID/Economic Offences Wing of the State
concerned
➢ Micro Manufacturing enterprise is one in which investment in machinery up
to: Rs 25Lakhs
➢ Micro enterprise in which investment in equipment is up to: Rs. 1 Crore
➢ Counterfeit note kept record for year: 3 years
➢ NEFT can be sent upto what time : 24 x 7
➢ JLG member range: 4 to 10
➢ Payment bank accept deposit upto 1 lakh by: Only Saving and Current
account
➢ Walk in customer deposit amount Rs…..and above to verify KYC: RS
50,000
➢ CERSAI full form: Central Registry of Securitization, Asset
Reconstruction and Security Interest of India
➢ Notice money vary from 2 to …………day: 14
➢ Frauds of Rs 30 million and above and up to ₹250 million: CBI- To be
lodged with Anti- Corruption Branch of CBI (where staff
involvement is prima facie evident) or Economic Offences Wing of
CBI (where staff involvement is prima facie
not evident)
➢ As per KYC guidelines, where the customer is an unincorporated
association or body of individuals (including societies), the
beneficial owner is the natural person(s), who, whether
acting alone or Together, or through one or
more Juridical person, has/have ownership of/entitlement to:
more than 15 percent of the property or capital or profits
of the unincorporated association or body of individuals.
➢ Bank is a member of which CICs – Transunion CIBIL, Experian,
CIC, Equifax CIS & CRIF High Mark.
470
➢ Profit before tax (450), tax (150), Depreciation (75), Interest on TL (75)
& Instalment of TL (150) – Calculate DSCR: 2:1 (profit after
tax+ Depreciation + Interest on Term Loan)/ (Annual instalment
+ Interest on Term loan) = (450+150 + 75 +75) / (150 + 75)
➢ Working Capital Limit (Rs 30 lacs), Outstanding Liability (Rs 18 lacs),
Margin (25%), Stocks (Rs. 21 lacs) – What action bank needs
to take: Bank should ask borrower to regularize the drawing
power to avail full limit as DP at present will be Rs 15.75 Lac whereas
outstanding is Rs 18 lac .
➢ Reporting fraud cases, amount above Rs. 3 Cr and up to Rs……….to be
lodged with ACB, CBI where staff involvement is there - Rs. 25 Cr.
➢ UCPDC 600 is maintained and revised by: International Chamber of
Commerce (ICC).
➢ A product that derives its value from the performance of an underlying
entity: Derivative
471
QUICK RECAP – 5
1. A cheque dated 31sept 2021, is presented for payment to bank on 30 Sept 2021.
What should the bank do?: Bank can pay the cheque if otherwise in order.
2. What is the maximum project cost under PMEGP: Rs 25 Lakh for manufacturing
enterprises and Rs 10 Lakh for Service Enterprises.
3. What is the Current rate of CRR : 4% of Net Demand and Time Liabilities.
4. Profit before Tax – 120; Tax paid – 20; Annual Instalment of term loan – 70;
Interest on term loan – 30; Depreciation – 20; What will be the Debt service
coverage ratio:
1.5: 1
5. What is the full form of NPCI: National Payment Corporation of India.
6. In case of RRB, what is the target for financing agriculture as part of Priority
sector: 18% of total advances.
7. Banking is defined under which act: Banking Regulation Act
8. Which of the following is an Intangible asset – Stock, Machinery, Capital,
Goodwill: Goodwill
9. What is the nature of charge created on Shares: Lien or Pledge
10. What is the maximum amount of loan that can be sanctioned under Stand up
India Scheme: Rs 100 Lakh
11. When Net working capital will be negative: When Current Liabilities are more
than Current Assets.
12. What is the amount of insurance under Prime Minister Jeevan Jyoti Bima Yojna:
Rs 200,000
13. Which of the following is not Officially valid document for proof of ID: Ration
card.
14. As per Asset Classification norms, Loans are classified into how many
categories: Four. Standard, Sub Standard, Doubtful and Loss.
15. Debt Equity Ratio is 2:1; Long Term Liability 20; Loss – 2; What is Tangible Net
Worth: 8 ( As Debt equity ratio is 2:1 and Long term liability is 20, net worth will
be 10. Tangible net worth = Net worth minus intangible assets i.e. loss of 2)
16. After taking over possession of securities, the bank wants to sell the same.
Before sale, how many days notice is required to be given to borrower and
Guarantor: 30 days notice.
17. What is the relationship between bank and customer in case of overdraft?:
Creditor and Debtor
18. When a crossing is called Special Crossing?: When name of a bank is written
on the face of the cheque within or without two parallel lines.
472
19. What is the limitation period for execution of a court decree: 12 years.
20. On which of the following securities, charge cannot be created by
hypothecation?: Shares
21. A loan has been given to a limited company against hypothecation of stocks.
Company is required to get the charge registered with: Registrar of Companies.
22. Interest on Saving Bank deposits is paid at what interval Quarterly
23. Assets are classified into 4 categories. Three of these categories are – Standard,
Sub Standard, Doubtful category. Which is the 4th category: Loss asset
24. What is the status of Nominee in case of deposits: He is trustee of legal heirs.
25. When bank remits funds to RBI for deposit in DEAF Account: When account is
not operated for 10 years.
26. When alongwith growing crops farmer undertakes rearing of Livestock, it is
called: Mixed Farming.
27. What is the impact of inflation: Purchasing power of money goes down.
28. What is the second stage limit under NRLM: 8 times the Savings and
Revolving Fund with a minimum of Rs 2 lakh.
29. As per RBI guidelines, the investments classified under HFT would be those from
which the bank expects to make a gain by the movement in interest rates/market
rates. These securities are to be sold within: 90 days
30. A customer had given stop payment instruction to bank. But cheque was paid
due to Bank’s mistake. Customer account should be credited within how much time:
Immediately
31. Banks cannot grant loans against security of its own shares. This is as per:
Section 20 of the Banking Regulations Act.
32. A bank is required to have four components of KYC Policy of the bank. Three of
these components are – Customer Identification policy; Monitoring of Transactions;
Risk Management. Which is the fourth one: Customer Acceptance Policy.
32A.Scale of Finance i.e. crop loan per hectare is decided by: District Technical
Committee
33. What is maximum amount of claim that can be filed with Lok Adalat: Rs 20 Lakh
34. In case of hypothecation, what type of possession with bank: Constructive
Possession.
35. What is the relationship between Bank and Judgement Debtor when Garnishee
order is issued: Debtor and Creditor
36. What is the rate of subsidy in PMEGP if loan is made to a SC/ST women in rural
area: 35% of the project cost.
37. What will be the impact of reduction in SLR or CRR?: Liquidity will increase
resulting in more funds available to banks for lending.
473
38. A cash credit or overdraft account becomes out of order when: DP is allowed on
stock statement which is 3 months old or outstanding is more than limit
sanctioned or drawing power or no credits in the account or credits are
insufficient to recover the interest.
39. What is the maximum amount of loan that can be granted under Tarun category
in the case of PMMY?: Rs 10 Lakh
40. What is balance sheet: Statement of Assets and Liabilities as on a date.
474
RECAP – 6
➢ 1st mobile ATM is started by which bank-ICICI

➢ Under which section GOI gives direction to RBI- Sec.7(1)
➢ SDR is available in which currency- INR
➢ Account becomes inoperative after how many years- 2 years
➢ What is the name of SBI voice assistant- SIVA
➢ Inoperative account payment is entered in which register– Cheque
referred/returned register
➢ Risk category of inoperative account –Medium
➢ What is the name of AI of PNB met life– Khushi
➢ Global competitiveness index –58
➢ Mudra is a subsidiary of –SIDBI
➢ What is paripassu charge –proportional
➢ Yuva is AI of which SBI Subsidiary –SBI Mutual fund
➢ Ease of doing business India ranks 2019-77
➢ Super Sr.Citizen age Above –80 years
➢ Islamic Bank Head quarter –Doha
➢ Attachment order issued by-Income Tax authorities
➢ Asha Home Loan is of which bank- AXIS BANK
➢ Minimum balance requirement for current account in rural areas -Rs.10,000/-
➢ Minimum amount of loan in PAL home loan- Rs.10 Lakhs
➢ In which type of mortgage action can be taken without intervention of
court- English Mortgage
➢ Minimum gms of gold deposit- 50gms
➢ Is payment allowed at non home branch in capgain account– No
➢ Max deposit allowed at non home branch in p segment account- No such
limit
➢ Minimum balance requirement in MACT Saving account- No min.balance
➢ What is document AB-4 Revival letter from borrower
➢ Which taxn right is issued in capgain account- View only
➢ Fleet finance collateral- Nil upto Rs.5 Cr. to be covered under CGTMSE,
Above Rs.5 Cr. hybrid collateral >= 50%
➢ SME smart score –Personal, business, collateral
➢ SME Open term loan validity– 12 months
475
➢ Expected rentals not added in which HL –Realty

➢ Provision in HL above 75 lakhs- 75%
➢ Fasal Bhima Yojana –No such restrictions
➢ KCC tie up collateral free- 3 lakhs
➢ Stand up India Max. Loan- 1 crore
➢ Agri Abl-LTV 65%, –5 times
➢ Green field projects for which type of loans
➢ Technology partners for ATM switch center –Base24 & Electra
➢ Name of app which gives facility to fill voucher on smart phone –DIGI
VOUCHER
➢ Name captured in cheque leaves thru which screen –Personalization
➢ Full form of MOPS- Multi option payment system
➢ Standard number of cheque leaves issued in saving account –10
➢ Machine installed at branch for passbook printing –SWAYAM
➢ Name captured in cheque book requisition slip through which
screen- Personalisation
➢ Sbi mingle is available on social media platforms– Face book and Twitter
➢ Teller gets inactive in cbs in how many days– 7
➢ ASBA link to which type of account –S.B. & C.A.
➢ Technology used in SBI fastag– RFID
➢ Buying and selling online– E-commerce
➢ Which product is available for toll plazas- Fastag
➢ App for downloading of home loan education loan interest certificate- Sbi
quick
➢ User name and password to be issued to customer through which mode -By
courier/post
➢ Card name in collaboration with Indian army- Imprest Card
➢ Minimum and maximum amount to be reloaded eZ-pay card –Rs.100/ and 1
lakh
➢ Maximum amount of DD to be issued through INB in a day- Rs.5lakhs
➢ How many beneficiary can be added in RINB through OTP in day- 3
➢ Validity period of eZ-pay card –10 years
➢ How many classification of vehicle by NHAI- 7
➢ Max.limit of GRC in a month –Rs.1lakh
➢ Txn limit of Sbi Bhim pay in a day –40K
➢ Amount of AAI available in DSP platinum account – 1 Cr
➢ Back to Index page
476
Descriptive Topics
English language & Comprehension
Exercise - 1
Marcus Bartley hails from a family of renowned doctors in Yercaud. It was expected
that Bartley too would enter that profession. But even in school, he knew what he
wanted to do. His parents left him to make his own choices, and in 1940, Bartley
headed to Bombay and got a job as a rookie photographer/reporter with a leading
newspaper. In the small, closely-knit coterie of press photographers, he met Ellis R
Dungan, Shantilal Shah (whom I married much later), BK Dilwali of Simla Studios,
Carlo Marconi, and Homai Vyarawalla. Bartley did not have any formal training in
photography, but he was willing to work hard and do the smallest of jobs. He observed,
read, watched and absorbed. My husband would say that as a press photographer,
you clicked on the run, and considered yourself lucky if you got four to five clear
photographs from a roll of 36. With Bartley, it was almost always 36 out of 36.
In 1945, with the War over, Bartley returned to Madras and cranked his first film. When
we caught up with him in 1956, this tall, welcoming man with bright blue eyes was
head of the photography department of Vauhini Studios owned by B Nagi Reddy. Much
has been said of Bartley being a difficult person to get along with, because of his bad
temper. The truth is that he was a perfectionist and could not deal with an
unprofessional attitude. He didn’t believe in hierarchies and treated everyone the
same; it is possible he didn’t even know the names of the stars in his films. All that
mattered to him was that they were punctual.
He did not understand Hindi, spoke fractured Tamil and Telugu, but he made it a point
to sit with the script writer and director, understanding the screenplay, so he could
work on his lighting style. His specialty was special effects, particularly for mythological
films. Bartley had hand-picked a team of light boys and assistants, who carried out his
instructions, working in efficient silence. He rarely allowed anyone to handle his
lenses. I have seen him holding on to them as though they were the Holy Grail. He
was focused and would work for nights before the actual shooting, lighting the set to
make it perfect. He worked with glamorous film stars, but rarely socialised with them.
He was teased for being one of the rare Anglo Indians who never danced.
He was excited when Ramu Kariat signed him on for Chemmeen (Malayalam). There
were endless problems with this film. After the famed Hrishikesh Mukherjee stepped
in to re-edit the confused footage, the film was released in 1965, to unanimous acclaim
by critics and audiences. Every aspect of the film was highly praised, in particular the
photography by Bartley. But there were also rumours that Bartley had walked out
midway over money matters. No one who knew him would believe he would jeopardise
a production over money. Creative differences or unprofessionalism perhaps, but
money was the least important aspect of his profession. Sadly, some portions of the
film had to be completed by another cameraman and that was enough to cost Bartley
the National Award that year. Many years later, senior cameraman U Rajagopal told
me that he was only called in to complete patchwork. Bartley finally received the Award
in 1969/1970 for Shanti Nilayam.
477
Bartley was not in good health. He had long suffered with diabetes, refused to go to a
doctor, treating himself instead. By 1988, he seemed to lose his driving interest. He
was restless and lonely. He decided to give up cinematography, but had more work
than he could cope with, repairing lenses. Arriflex made him their authorised service
person and Bartley would sit for hours, doing precision work alone, in silence. He had
never had a large circle of friends as his scholarship and iconoclastic brilliance did not
allow casual chat. His son Alan admitted him to a hospital but Nagi Reddy shifted
Bartley to Vijaya Hospital where he was given personal attention. From the Studios to
the Vijaya Hospital, it was as though the wheel had come full circle.
A few days later, as I was about to drive to the hospital, I received his son’s call that
Bartley had passed away. The roads to his home were jammed for hours. Cars were
abandoned and we walked. There were hundreds of weeping people, friends choked
with grief, mounds of garlands. His peers, members of every association of the film
industry were present. There are not many who remember him today. But his
achievements as pioneer, visionary, genius, and guru live on. Rajiv Menon and Madhu
Ambat call me on occasion and we speak of Marcus Bartley. He will never be forgotten.
(1). According to passage, it was difficult to get along with Marcus Bartley
because of his
(a) bad temper. (b) rude behaviour.
(c) tough style of working in film industry. (d) drug addiction.
(2). Consider the following statements regarding the film 'Chemmeen '
I. Bartley was very excited when Ramu Kariat signed him for Chemmeen.
II. Chemmeen was a Tamil film.
III. It was released in 1965.
Select the correct statements using the code given below.
(a) II and III only (b) I and II only
(c) All are Correct (d) I and III only
(3). Where did Marcus Bartley get his first job?

(a) Bollywood (b) Acting School
(c) Newspaper (d) Writer
(4). For which film Marcus Bartley got his first National Award 1969-1970?
(a) Chemmeen (b) Shanti Nilayam

(c) Mayabazaar (d) Vyarawalla
(5). Which of the following statements is incorrect about Marcus Bartley?
(a) He was fluent in Tamil and Telugu. (b) He got his first film in Madras.
(c) He was an Anglo-Indian. (d) He was a cinematographer.
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(6). Choose the word/words which is Most Similar to the word underlined in
bold in the passage:
Grail
(a) Cup (b) Beaker

(c) Sacred Vessel (d) draught
(7). Choose the word which is Most Similar to the word underlined in bold in
the passage:
Unanimous
(a) Divided (b) Universal
(c) Popular (d) Cut
(8). Choose the word which is Most Opposite to the word underlined in bold
in the passage:
Rookie
(a) Expert (b) Colt
(c) Trainee (d) Apprentice
in the passage:
Jeopardise
(a) Stake (b) Risk
(c) Imperil (d) Protect
(10). Choose the word which is Most Similar to the word underlined in bold
in the passage:
Iconoclastic
(a) Individualistic (b) Agnostic

(c) Atheistic (d) Unbelieving
479
Exercise - 2
India is the world’s most populous democracy and will, by 2030, be the most
populous country, overtaking China. And it is young — there are more Indian 10-
year-olds than there are Australians. With more than a dozen distinct languages,
scripts and religions, India is multiculturalism on the grandest scale. And to sustain
a vibrant modern democracy, surely India is one of the greatest political
achievements of our times.
Once you appreciate its size, you see its potential. Think of all those 10-year-olds
who will one day be voting in India’s elections and who will also, one day, belong
to India’s middle class, the engine of its booming economy. Put all that together
and it’s easy to understand why India will play a central role in our region and the
world and, I hope for Australians, it is easier to see why the relationship between
our two countries has never been more important.
That formal relationship began for many Australians in 1950, when Robert Menzies
became the first Australian leader to visit independent India. Since then, both
countries have been transformed. Now we must turn our attention to transforming
the relationship to one that matches India’s huge needs and its enormous potential
with our people, Australia’s best assets, as well as our resources and our shared
democratic traditions.I am delighted to be taking up the Indian Prime Minister
invitation to make my first official visit to India as Prime Minister, from April 9-12.
During the visit we will focus on three areas of our relationship that show great
potential: our economic, knowledge and strategic partnerships. India is inspiring
the world with its explosive economic growth. Its economic take-off is lifting millions
out of poverty, transforming the country into the world’s fastest-growing major
economy, with forecasted growth of 7.5% in 2017. This is a stunning result for
India, and a rare opportunity for Australia. From Mumbai to Melbourne, from
Bengaluru to Brisbane, India will be in the market to buy some of the best things
Australia has to offer. Two-way trade is growing, and approaching $20 billion, but
that’s far too low and there’s so much more we can do. This will be a key focus of
my visit. I’ll meet with executives from some of India’s biggest companies and
speak with Australian entrepreneurs in India who are expanding their market reach
into this extraordinary country.
The Government will announce the results of the tenth round of the Australia-India
Strategic Research Fund. Worth more than $100 million, this initiative has enabled
our sharpest minds to collaborate in areas such as food security and health and
advance the boundaries of human knowledge in quantum computing,
nanotechnology and astronomy. By combining our talents, we can add to the
technological achievements already made in both our countries.
For decades, our citizens have been criss-crossing the Indian Ocean in search of
knowledge. Last year, Australia was the second-most popular study destination for
Indian students — 60,000 came to Australia to learn. Through the Government’s
New Colombo Plan, I want to see more and more young Australians choosing India
480
as a place to study and boost their own qualifications and experience. India’s
demand for our minerals and resources remains high. But education is a new
pathway to shared prosperity. Consider the numbers — the Indian Government is
aiming to train 400 million people by 2022. We can help them achieve this goal.
A great strength of our education relationship is found in the higher education and
research sector. Collaboration between our institutes on high-end research,
innovation, science and technology are central to developing our knowledge
partnership. Having met twice already, the Prime Minister of India and I know that
our close economic cooperation is also matched by shared strategic priorities. The
security and stability of the Indo-Pacific is fundamental to both of us and my visit
provides an opportunity to discuss key regional and geostrategic issues and
strengthen our engagement. As liberal democracies, we can work together to
encourage free trade and prosperity and to help safeguard security and the rule of
law in our region.
At home, we are lucky that India — its culture, its art, its food, its people — has
become such a large and important part of Australian life. Half a million Australians
are of Indian descent. That number increases each year. Whether it’s Little India
in Melbourne, Diwali celebrations in Brisbane, or the long-established Sikh
community on the North Coast of New South Wales, modern Australia, the most
successful multicultural society in the world, could not be imagined without the
contribution of Indian-Australians.
(1). According to the given passage, which of the following statements

regarding 'Robert Menzies ' is correct?
(a) He is the current Prime Minister of Australia.

(b) He was the first Australian leader to visit independent India.
(c) He is the current Defence Minister of Australia.
(d) He was the first Anglo-Indian leader to visit Australia in 1950.
(2). Consider the following statements regarding 'India' as described by the

writer
I. India will be the most populous country by 2030.
II. India is one of the greatest political achievements of the world.
III. Currently, India is the biggest defence partner of Australia.
Which of the above statements given above is/are correct?

(a) I and II only (b) II and III only
(c) I and III only (d) All are Correct
(3). What is the worth of the tenth round of the Australia-India Strategic
Research Fund?
(a) $ 400 Million (b) $ 50 Million
(c) $ 100 Million (d) $ 300 Million
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(4). The writer of the above passage is visiting India on the invitation of
(a) CM of Maharashtra (b) Vice-President
(c) President (d) Prime Minister
(5). Currently, the two-way trade between India and Australia is

(a) $ 100 Million (b) $ 20 Billion
(c) $ 100 Billion (d) $ 200 Million
(6). Which of the following statements is/are correct regarding Australia in

context with India?
(a) Last year, Australia was the second-most popular study destination for Indian
students.
(b) Half a million Australians are of Indian Origin
(c) Last year, Australia was the most popular study destination for Indian students
(d) Both (a) and (b)
bold in the passage.
Booming
(a) Failing (b) Growing

(c) Profitable (d) Thunderous
Vibrant
(a) Spirited (b) Pale

(c) Sluggish (d) Zippy
in the passage.
Delighted
(a) Captivated (b) Entranced

(c) Ecstatic (d) Melancholy
(10). Choose the word which is Most Opposite to the word underlined in
Descent
(a) Plunge (b) Droop

(c) Ascent (d) Swoop
482
Exercise - 3
There’s the crush of traffic outside and the air is still with the heat of summer and the
aroma of baking. At the junction of Perambur’s Paper Mills Road and Foxen Street, at
the cusp of the slowly-vanishing world of Anglo India, is Ajantha Bakers. A mosaic-
tiled stairway leads to the bakery on the first floor, overlooking tin-roofed garages and
tiled houses that have risen and slept under the warm blanket of comfort this aroma
exudes. Ajantha Bakers has been part of this Anglo-Indian stronghold since 1972,
baking wedding cakes, pound cakes and marzipan-rich, chewy Easter eggs.
But, during the week between Palm Sunday and Easter Sunday, it is hot cross buns
— soft, slightly spiced and tinged in nostalgia — that sell by the thousands. Says KS
Subhash, managing director, “When my father KT Sekhar started the bakery, he had
plenty of Anglo Indian friends and customers. They still form the backbone of our
clientèle, and it is their recipes that we largely use, whether in our butter cakes or
whole-wheat breads. Our Easter eggs and bunnies made of marzipan and chocolates
are ready at least two weeks ahead of the festival. For the hot cross buns, which are
eggless, we use the best of spices blended with raisins. That flavour is unmistakeable
and we bake about 25,000 buns. They sell out within a few hours.”
Ajantha Bakers sells its buns on Thursday, “so they keep fresh” on Good Friday, when
they are traditionally eaten. “Priced at Rs. 65 for a pack of five, the buns are retailed
at our 14 outlets and ordered in bulk by churches.”
In Britain, where it first originated, hot cross buns have been celebrated in a nursery
rhyme and sold in supermarkets through the year. The bar at The Bell Inn, Essex, has
buns from every Good Friday since 1906 suspended as buntings. Belief is that hot
cross buns hung in kitchens prevent fires, and the faith behind them would never let
them go mouldy. Hot cross buns have also been mixed with unusual flavours such as
Earl Grey tea, rum-soaked sultanas and potato-bread dough. In Chennai, though, it is
the standard recipe that is followed. At the iconic Buhari Hotel on Anna Salai, hot cross
buns will be available from Thursday. The hotel that has stood here since 1951, has
had an in-house bakery since the 1960s. Above the roar of traffic and customers
tucking into plates of biryani on a busy Friday afternoon, Nawaz Buhari, managing
director, says, “The egg-free recipe for hot cross buns that we follow comes from the
Vietnamese bakers who worked here when we started out.” While the famed
McRennett will stock hot cross buns priced at Rs. 40 for a pack of four from tomorrow,
hotels such as ITC Grand Chola and Hyatt Regency already have trays laden with
Good Friday and Easter goodies at their gourmet shops.
Harry MacLure, editor, Anglos in the Wind, says of his childhood in Tiruchi, “It was
tradition at home — the air used to be filled with the spiced aroma of hot cross buns
baking, but now we just buy it off store shelves. We look forward to breaking the fast
with this simple delicacy and a coconut milk-rice gruel with coconut chutney.”
483
Hot cross buns have long been a symbol of spring and fertility. According to pagan
legend, oxen were sacrificed, and their horns symbolically emblazoned on freshly
baked bread. The words ‘bun’ and ‘Easter’ are derived from the Anglo Saxon lexicon
meaning ‘sacred ox’ and ‘Eostre’, the goddess of spring. The four quadrants made by
the cross on the bread are said to have represented the phases of the moon. The
modern version of the hot cross bun is a British invention that came with Europe
opening up to trade with the East. Spices and salt started to cost less and the sweet-
savoury bun with a pasty white cross on its brown top became a Good Friday baker’s
treat. The cross came to symbolise Christ’s passion and death, and the spices, the
mixture with which his body was embalmed. So popular and wholesome were the
buns, that they were baked through the year, and Queen Elizabeth I had to issue a
royal decree to stop their year-round baking, so that their religious symbolism wouldn’t
be lost.
(1). Consider the following statements regarding the Ajantha Bakers as given in the
above passage:
1. It is situated in Perambur.
2. It has been part of Anglo-Indian stronghold since 1872.
(1) Which of the above statements is/are correct?
(a) 1 only (b) 2 only

(c) Both are correct (d) None is correct
(2). Where did hot cross buns come from?
(a) Britain (b) Perambur

(c) USA (d) Spain
(3). Which of the following statement regarding Ajantha Bakers is incorrect?
(a) They are famous for chewy Easter eggs.

(b) They are famous for wedding cakes.
(c) Hot cross buns are ordered in bulk by churches.
(d) It is famous for only hot cross buns.
(4). What is 'Eostre’ in context with the pagan legend as described in the
passage?
(a) horns (b) Bread

(c) Goddess (d) moon
(5). From where the egg-free recipe for hot cross buns came?
(a) India (b) Vietnam

(c) China (d) Burma
(6). Choose the word which is Most Opposite to the word underlined in bold in
the passage:
484
tucking
(a) spread (b) enfold
(c) push (d) seam
(7). Choose the word which is Most Opposite to the word underlined in bold in
the passage:
gourmet
(a) connoisseur (b) critic

(c) gourmand (d) destitute
the passage:
delicacy
(a) inelegance (b) coarseness

(c) heaviness (d) elegance
the passage:
embalmed
(a) wrap (b) squander
(c) waste (d) neglect
the passage:
decree
(a) word (b) rap
(c) directive (d) verdict
Answers
Exercise - 1
1-a 2-d 3-c 4-b 5-a
6-c 7-b 8-a 9-d 10-a
Exercise - 2
1-b 2-a 3-c 4-d 5-b
6-d 7-b 8-a 9-d 10-c
Exercise - 3
1-a 2-a 3-d 4-c 5-b
6-a 7-d 8-d 9-a 10-c
485
COMPREHENSION -4
Kindly go through the passage and answer the questions that follow in the
space provided.
There are three beneficial aspects in the context of techno-banking in the Indian
context - that of profitability, which concerns the owners, that of service, which
concerns the customers and lastly, that of regulatory and statutory compliance, which
concerns the regulators. Briefly, the technology adoption has surely added to the
profitability for the banking sector and now supports a much larger asset without any
increase in manpower. The ease of capture, storage, portability, and retrieval of
information has enabled, at least potentially, a much better compliance regime. With
expansive ATM network and wide implementation of core banking solution, we seem
to have but in place the basic paradigm of techno-banking for the customer. However,
banks are yet to achieve an optimal level of efficiency in all three aspects and there is
a lot to be done in that regard.
One issue that has been accorded high priority in our policy hierarchy in recent times
is financial inclusion. We have always been alive to the need for extending the reach
of the financial sector to the under-privileged sections of the society. The branch
licensing policy of the seventies and the eighties with mandatory extension of branch
network to rural areas was pursued with that objective. It has been estimated that a
1% increase in the number of rural banked locations, per capita, resulted in distinct
decline in poverty, and a 0.34% increase in total output. Now, the technological
advancement has made it possible for us to think of novel and innovative ways to
approach the objective of financial inclusion.
Before we discuss application of technology to achieve financial inclusion, let us

convince ourselves of the imperative of financial inclusion. The financial sector,
amongst others, performs two important functions. It enables inter-temporal transfer
of income – you can transfer surplus income of one period to a lean period and you
can borrow in a lean period against future income. Access to financial sector also
enables the vast multitude of self-employed urban as well as rural poor to engage in
productive activities and live with dignity. Financial Inclusion must be pursued as a
business model as there is vast scope of sustainable and profitable business.
On the subject of innovative application of techno-banking in a broader socio-

economic context, the innovative M-PESA mobile banking system in Kenya is a case
in point. Kenya is one of the world’s leaders in mobile money with roughly 26.2 million
accounts — more active accounts than adults in its population. More than 80% of those
who have mobiles use it for mobile payment and banking. The basic idea of M-PESA
is that the 100,000 small retailers in Kenya who already sell mobile-phone airtime, in
the form of scratch cards, can also register to be mobile-money agents, taking in and
paying out cash. More than 65,000 retailers have signed up as M-PESA agents—far
486
outnumbering Kenya's bank branches.
Over 17 million people use it – this means rural villagers haggling over produce and
using their cell phones to make the final deal. It means Masai herdsmen bringing their
phones to market along with their cattle, ready to stock up on essentials to bring back
to their homes. Such a system also requires intermediaries, to get the cash to M-PESA
agents, and ensure cash movement keeps up with e-float exchanges. In this way, the
system has created new jobs, with some intermediaries and retailers earning $1000 a
month in commission from M-PESA transactions. The success of M-PESA can be
attributed to several factors viz. the absence of banking facility, presence of a single
dominant operator, absence of a cost-effective remittance channel and existence of
national identity. Needless to say, there is no one-size-fit-all technology for all
situations. The innovation will have to adapt itself to the needs and endowments of
each society.
1. What are the benefits of techno-banking in India?

2. According to the author, what action of Banks had resulted in the decline of
poverty in the seventies and eighties?
3. What are the benefits of financial inclusion?
4. What are the reasons for the success behind M-PESA model?
5. According to the author, what are the advantages gained by the Banks by
adopting technology?
487
COMPREHENSION -5
space provided.
M/s. X Y Z & Company is a firm established during the year 2012, as a proprietorship
concern, promoted by Sri E Narayan to carry on the business of dealership for the
Motors of Crompton Grieves Limited. As the business of the unit improved, it became
the authorized dealer for major electrical giant companies. The unit established its
name for the quality supplies of Electric Motors, Pumpsets, Valves and Transformers.
The unit expanded its activities to various districts of Kerala by opening different outlets
nearer to the river bed areas. As the business increased year after year the promoter
converted the constitution to Partnership during the year 2019, with the admission of
his family members i.e. wife, daughter and son-in-law who is an electrical engineer.
With the inclusion of his son-in-law, the unit attained strength and spread its business
by undertaking supply, erection and commissioning, works contracts of various
Irrigation Projects.
2. Excellent Bank are the unit’s bankers. The unit was initially sanctioned a Cash Credit
limit of Rs.20 lakhs and a Bank Guarantee limit of Rs.30 lakhs by Excellent Bank. The
unit is now enjoying a Cash Credit limit of Rs.40 lakhs and Bank Guarantee limit of
Rs.50 lakhs. The limits are collaterally secured with urban properties valued at Rs.125
lakhs. The unit completed certain sub-contracts to the tune of Rs.250 lakhs out of its
own funds. The unit has now received direct orders for installing the H.T. Motors under
Major Lift Irrigation Schemes of Government of Kerala, at various places to tune of
Rs.750 lakhs to be completed within a period of one year. As per the terms of the
Contract, the unit will receive 30% of Motor Cost in advance for the supply of the
respective Motor after 2 - 3 months and the rest of 70% at the time of supplying. To
execute the above order the unit has come up with a request for enhancement of the
existing limits. The unit has requested for enhancement of cash credit limit from Rs.40
lakhs to Rs.250 lakhs and the Bank Guarantee limit from Rs.50 lakhs to Rs.75 lakhs.
The unit is ready to give additional urban collateral securities to the tune of Rs.425
lakhs situated at Kochi, Kannur and Alleppey. The unit is having the following work
orders amounting to Rs.750 lakhs as under: i) Alleppey Water Works amounting to
Rs.200 lakhs ii) Kannur Irrigation Agencies for Rs.300 lakhs iii) Kochi district Rs.250
lakhs.
1. The unit is engaged in what activity and how does it wants to expand its
business?
2. What was the benefit in change of constitution for the unit?
3. What were the limits the unit enjoying initially & what is the unit now
requesting?
4. Do you feel that the unit can complete the orders in time, and if not discuss
at least two risks and how the unit can mitigate the same?
5. Can you justify the sanction for enhanced limits to the unit?
488
COMPREHENSION -6
space provided.
Stress tests cover a range of methodologies. Complexity can vary, ranging from simple
sensitivity tests to complex stress tests, which aim to assess the impact of a severe
macroeconomic stress event on measures like earnings and economic capital. Stress
tests may be performed at varying degrees of aggregation, from the level of an
individual instrument upto the institutional level. Stress tests are performed for different
risk types including market, credit, operational and liquidity risk. Notwithstanding this
wide range of methodologies, there are several methodological weaknesses. At the
most fundamental level, weaknesses in infrastructure limits the ability of banks to
identify and aggregate exposures across the Bank. This weakness limits the
effectiveness of risk management tools including stress testing. Most risk
management models, including stress tests, use historical statistical relationships to
assess risk. They assume that risk is driven by a known and constant statistical
process, i.e. they assume that historical relationship constitutes a good basis for
forecasting the development of future risks. However, there are serious flaws with
relying solely on such an approach. First, given a long period of stability, backward
looking historical information indicates benign conditions so that these models do not
pick up the possibility of severe shocks nor the build- up of vulnerabilities within the
system. Historical relationships, such as correlations, prove to be unreliable once
actual events started to unfold. Second, the financial crisis has again shown that,
especially in stress conditions, risk characteristics can change rapidly as reactions by
market participants within the system can induce feedback effects and lead to system
wide interactions. These effects can dramatically amplify initial shocks. Most banks do
not perform stress tests that take a comprehensive firm wide perspective across risks
and different books. Even if they did, the stress tests are insufficient in identifying and
aggregating risks. As a result, banks do not have a comprehensive view across credit,
market and liquidity risks of their various businesses. An appropriately conducted firm
wise stress test will beneficially draw together experts from across the organization.
For example, the expertise of retail lenders who in some cases were reducing
exposure to US sub-prime mortgages, should have counteracted the overly optimistic
outlook of traders in securities backed by the subprime loans.
1. Why are Stress tests conducted?

2. Why do banks not have comprehensive view on stress tests?
3. According to the author, why are historical relationship models
unsuccessful?
4. What has the financial crisis shown especially with regard to stress tests?
5. Why did some retail lenders in US act differently and what was their action?
489
COMPREHENSION -7
space provided.
A study revealed that around 80% of ATM customers are not using ATM cards for any
purpose other than cash drawings. Creation of awareness among customers
enhances the usage of Debit cards, leading to more and more dependency on the
same over a period of time. Wider acceptance of debit cards at Point of Sales by
merchant establishments needs to be promoted in a big way. Necessary canvassing
is required to be done by the staff members. Pamphlets containing different ATM
services/facilities are to be made available at ATMs to enhance awareness among
customers. Wide publicity by means of Media and Newspapers creates awareness
among customers in a big way. Supply of more number of swiping machines to
merchant establishments promotes usage of Debit cards at POS. This also facilitates
the Merchant Establishments avoid the drudgery job of collecting cash from
purchasers, sorting and safe keeping them till it is deposited into their account in a
Bank. Further, this reduces the risk of carrying cash and also saves time for the
customers on account of drawing money from ATMs. Also, the work relating to cash
replenishment is reduced for the Bank. This ensures increased earnings by means of
commission on account of transactions at POS. The number of cash outs also gets
reduced leading to enhanced confidence of customers on ATMs.
Down time of ATMs is one of the customer dissatisfaction areas, on account of which
dependence on ATMs by the customers would be lost in the process. Outsourcing of
cash replenishment activities has brought in significant improvement in addressing the
problems pertaining to cash replenishment leading to enhanced satisfaction of
customers. Now, the Bank has also started replacing ATMs by Automated Deposit &
Withdrawal Machines (ADWMs). Further, by introducing stringent measures like
imposing penalties, quality in cash replenishment activities would be enhanced by the
outsourced agency, establishing desired standards therein. Under the Managed
Services, the vendors take care of many activities including Housekeeping i.e.
maintain the ATM kiosks/e-Corners neat and clean, supply of consumables - like
printer rolls, ribbons without any limit, provide security to ATMs wherever warranted,
and assistance to customers. If Air-conditioners in ATMs are not kept in good condition
it leads to customer inconvenience. This is more so in summer resulting in customer
dissatisfaction. This is a matter to be focused on and the matter to be taken up with
the vendor to ensure that the Air-conditioners are in good shape always.
1. What will be the impact of POS on ATM operations?

2. How cash replenishment problem can be resolved?
3. What amenities would enhance the ATM services?
4. How to resolve the problem of down time of ATMs?
5. What is the percentage of ATM customers who use ATM cards for the purpose
other than cash drawings and mention three ways to enhance this percentage?
490
COMPREHENSION -8
space provided.
A complaint whether oral or in writing, needs to be viewed alike. Some people feel
comfortable to meet branch people and express their grievances orally rather than
expressing the same in writing as it needs some patience and also time consuming
for them. Non- receipt of complaints need not be viewed that customers do not have
any grievances, and everything is going on well. The customers in some areas do not
prefer to complain against the Bank. They absorb any sort of inconvenience or
discomfort silently thus making the branch complaint free. It is up to the branch people
to pro-actively know whether the customers are really satisfied and free from
grievances. There are various reasons why customers complain. Delay in opening of
counters, non- availability of personnel at the counters and lack of product knowledge
are some of the reasons for customers’ dissatisfaction. Undue delay in settlement of
claims of assets of deceased constituents is another area where customers are likely
to get dissatisfied and disappointed. Besides these, other important complaints prone
areas are ATM related problems, non-functioning of pass book printers, indifferent
attitude of staff, delays in sanction of loans etc. The common problem expressed by
the Affluent and HNI customers is that they are made to stand in queues in the banking
hall. Consistency in rendering excellent service is very much essential in order to
ensure customer delight perpetually. Every visit of a customer should be viewed
equally important and excellence needs to be reflected during every visit of the
customer without any exception. A six-sigma customer service needs to be defined
and adhered to it without any exception. Bad customer service is inclusive of
disrespect, lack of attention, and negligence towards customers, lack of transparency
etc. If any complaint out of these is not attended to promptly, it may result in possible
bad mouth publicity by a dissatisfied customer, which in turn would have bearing on
the incoming customers and business thereof.
By lodging a complaint, the customer is expressing his opinion to continue with the
Bank provided his grievances are redressed and his problem is solved. Instead of
getting depressed, the branch people should perceive a complaint to be an
opportunity for betterment of the services and retaining the customer, (which is one
of the challenging tasks of the Bank today) by attending to his problem. Therefore,
prompt redressal of the grievances of the customers by rectification of omissions and
commissions, would enable not only to retain the customers but also, they do not
persist in future thus ensuring enhanced customer satisfaction.
1. Why do customers prefer complaining orally?
2. How should the branch view if customers do not complain and what should
the bank do about it?
3. Name at least three reasons that customers generally complain?
4. What needs to be done for rendering excellent customer service?
5. How should a complaint be viewed by a branch and what needs to be done

to redress it?
491
COMPREHENSION - 9
The depositor has registered nomination with the Bank, the balance outstanding in
the account of the deceased depositor will be paid to the nominee after the Bank
satisfies about the identity of the nominee.
The above procedure will be followed even in respect of a joint account where
nomination is registered with the Bank. In the case of joint accounts, the nominees
right arises only after the death of all the depositors.
In a joint deposit account, when one of the joint account holders dies, the Bank is
required to make payment jointly to the legal heirs of the deceased person and the
surviving depositor(s). However, if the joint account holders had given mandate for
disposal of the balance in the account in the forms such as "either or survivor, former
/ latter or survivor, anyone of survivors or survivor; etc., the payment will be made as
per the mandate to avoid delays in production of legal papers by the heirs of the
deceased.
In the absence of nomination and when there are no disputes among the claimants,
the Bank will pay the amount outstanding in the account of deceased person against
joint application and indemnity by all legal heirs or the person mandated by the legal
heirs to receive the payment on their behalf without insisting on legal documents up
to the limit approved by the bank's board. This is to ensure that the common
depositors are not put to hardship on account of delays in completing legal formalities.
Bank may call for succession certificates from the legal heirs of deceased depositors
in cases a) where there are disputes and all the legal heirs do not join in indemnifying
the Bank and b) in certain other exceptional cases where the Bank has a reasonable
doubt about the genuineness of the claimant(s) being the only legal heir(s) of the
depositor.
1. Under what circumstances bank may call for succession certificate?

2. If the Depositor has registered Nomination with the Bank, what is the
procedure to be followed?
3. In case of Joint account holders had given mandate for disposal how the
Bank should proceed?
4. When the right of the nominee will arise in case of Joint Deposit Account?
5. How to deal with Joint Deposit account, when one of the Joint account holder
dies?
492
SUGGESTED KEY FOR THE COMPREHENSIONS
COMPREHENSION 4
1. What are the benefits of techno-banking in India?

The benefits of techno-banking in India are profitability, which concerns the owners,
service, which concerns the customers and that of regulatory and statutory
compliance, which concerns the regulators
2. According to the author, what action of Banks had resulted in the decline of
poverty in the seventies and eighties?
The branch licensing policy of the seventies and the eighties with mandatory extension
of branch network to rural areas has resulted in the decline of poverty.
3. What are the benefits of financial inclusion?

It enables the vast multitude of self-employed urban as well as rural poor to engage in
productive activities and live with dignity.
4. What are the reasons for the success behind M-PESA model?
The success of M-PESA can be attributed to several factors viz. the absence of
banking facility, presence of a single dominant operator, absence of a cost-effective
remittance channel and existence of national identity.
5. According to the author, what are the advantages gained by the Banks by
adopting technology?
The technology adoption has added to the profitability for the banking sector and now
supports a much larger asset without any increase in manpower.
The technological advancement has made it possible for us to think of novel and
innovative ways to approach the objective of financial inclusion.
493
COMPREHENSION 5
1. The unit is engaged in what activity and how does it want to expand its
business?
The unit was initially engaged in the business of dealership for the Motors of Crompton
Grieves Limited. As the business of the unit improved, it became the authorized dealer
for major electrical giant companies
2. The unit’s constitution was changed from proprietorship to partnership in the

year 2019. What was the benefit for such a move?
With the inclusion of the promoter’s son-in-law, who was an electrical engineer, the
unit attained strength and spread its business by undertaking supply, erection and
commissioning, works contracts of various Irrigation Projects.
3. What were the limits the unit was enjoying initially and what is the unit now
requesting?
The unit was initially sanctioned a Cash Credit limit of Rs.20 lakhs and a Bank
Guarantee limit of Rs.30 lakhs by Excellent Bank. Later the Cash Credit limit was
enhanced to Rs.40 lakhs and Bank Guarantee limit to Rs.50 lakhs. The unit has
requested for enhancement of cash credit limit to Rs.250 lakhs and the Bank
Guarantee limit to Rs.75 lakhs.
4. Do you feel that the unit can complete the orders in time, and if not discuss
at least two risks and how the unit can mitigate the same?
Paucity of personnel and a short duration of one year could make it difficult for the unit
to complete the orders in time.
The two risks that the unit may come across are quality and execution the orders in
time. The former can be mitigated by following strict quality norms and the latter by
working in additional shifts in order to deliver the products as per schedule.
5. Can you justify the sanction for enhanced limits to the unit?
As per Nayak Committee Recommendations, the unit is eligible for a limit of 25% of
the projected turnover. Assuming that the projected turnover is Rs.750 lakhs, the unit
is eligible for Rs.187.50 lakhs less (margin and any liquid surplus in the balance sheet).
Hence, the limit of Rs.75 lakhs requested by the unit is justified. Also the additional
collateral of urban property offered by the unit is a major mitigating factor.
494
COMPREHENSION 6
1. Why are Stress tests conducted?

Stress tests are conducted to assess the impact of a severe macroeconomic stress
event on measures like earnings and economic capital.
2. Why do banks not have comprehensive view on stress tests?

The stress tests are insufficient in identifying and aggregating risks. As a result, banks
do not have a comprehensive view across credit, market and liquidity risks of their
various businesses.
3. According to the author, why are historical relationship models

unsuccessful?
Most risk management models, including stress tests, use historical statistical
relationships to assess risk. They assume that risk is driven by a known and constant
statistical process, i.e. they assume that historical relationship constitutes a good basis
for forecasting the development of future risks. Historical relationships, such as
correlations, prove to be unreliable once actual events started to unfold.
4. What has the financial crisis shown especially with regard to stress tests?
The financial crisis has shown that, especially in stress conditions, risk characteristics
can change rapidly as reactions by market participants within the system can induce
feedback effects and lead to system wide interactions.
5. Why did some retail lenders in US act differently and what was their action?
The expertise of retail lenders, who in some cases were reducing exposure to US sub-
prime mortgages, should have counteracted the overly optimistic outlook of traders in
securities backed by the subprime loans.
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COMPREHENSION 7
1. What will be the impact of POS on ATM operations?
It reduces the risk of carrying cash and also saves time for the customers on account
of drawing money from ATMs.
2. How cash replenishment problem can be resolved?
The work relating to cash replenishment is reduced for the Bank. This will ensure
increased earnings by means of commission on account of transactions at POS. The
number of cash outs also gets reduced leading to enhanced confidence of customers
on ATMs. The Bank has now started replacing ATMs by Automated Deposit &
Withdrawal Machines (ADWMs) on account of which replenishment problem can be
resolved to a great extent.
3. What amenities would enhance the ATM services?

Maintaining the ATM kiosk neat and clean, supply of consumables - like printer rolls,
ribbons without any limit, providing security to ATMs wherever warranted, and
assistance to customers will enhance the ATM services. Also we must ensure that the
Air-conditioners are in good shape always. In order to provide relief to customers in
hot summer and also as a measure of customer delight, drinking water facility at ATMs
may be provided by arranging water dispensers.
4. How to resolve the problem of down time of ATMs?

Outsourcing of cash replenishment activities can bring in significant improvement in
reducing downtime of ATMs.
5. What is the percentage of ATM customers who use ATM cards for the purpose
other than cash drawings and mention three ways to enhance this percentage?
About 20% of ATM customers use ATM cards for the purpose other than cash
drawings.
i. Customer awareness campaigns to be organized by all branches creating
awareness of the customers.
ii. Pamphlets containing different ATM services/facilities are to be made available at
ATMs.
iii. Supply of more number of swiping machines to merchant establishments.
496
COMPREHENSION 8
1. Why do customers prefer complaining orally?
Costumers prefer complaining orally as giving written complaints it needs some

patience and also time consuming for them.
2. How should the branch view if customers do not complain and what should
the bank do about it?
Non- receipt of complaints need not be viewed that customers do not have any
grievances, and everything is going on well. The customers in some areas do not
prefer to complain against the Bank. It is up to the branch people to pro-actively know
whether the customers are really satisfied and free from grievances.
3. Name at least three non-advances related reasons that customers generally

complain?
Delay in opening of counters, non- availability of personnel at the counters and lack
of product knowledge are some of the reasons for customers’ dissatisfaction. Undue
delay in settlement of claims of assets of deceased constituents is another area where
customers are likely to get dissatisfied and disappointed.
4. What needs to be done for rendering excellent customer service?
Consistency in rendering excellent service is very much essential in order to ensure

customer delight perpetually. Every visit of a customer should be viewed equally
important and excellence needs to be reflected during every visit of the customer
without any exception. A six-sigma customer service needs to be defined and adhered
to it without any exception.
5. How should a complaint be viewed by a branch and what needs to be done to

redress it?
The branch should perceive a complaint to be an opportunity for betterment of the

services and retaining the customer by attending to his problem. Therefore, prompt
redressal of the grievances of the customers by rectification of omissions and
commissions is required.
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COMPREHENSION 9
1. Under what circumstances bank may call for succession certificate?
Bank may call for succession certificates from the legal heirs of deceased depositors
in cases a) where there are disputes and all the legal heirs do not join in indemnifying
the Bank and b) in certain other exceptional cases where the Bank has a reasonable
doubt about the genuineness of the claimant(s) being the only legal heir(s) of the
depositor.
2. If the Depositor has registered Nomination with the Bank, what is the
procedure to be followed?
If the depositor has registered nomination with the Bank, the balance outstanding in
the account of the deceased depositor will be paid to the nominee after the Bank
satisfies about the identity of the nominee
3. In case of Joint account holders had given mandate for disposal how the
Bank should proceed?
Every time we drive away a customer by misbehaving with him or by not
If the joint account holders had given mandate for disposal of the balance in the
account in the forms such as "either or survivor, former / latter or survivor, anyone of
survivors or survivor; etc., the payment will be made as per the mandate to avoid
delays in production of legal papers by the heirs of the deceased
4. When the right of the nominee will arise in case of Joint Deposit Account?
In the case of joint accounts, the nominee's right arises only after the death of all the
depositors.
5. How to deal with Joint Deposit account, when one of the Joint account holder
dies?
Bank is required to make payment jointly to the legal heirs of the deceased person
and the surviving depositor(s).
Back to Index page

498
Essays on Banking related topics
General Guidelines for preparation (250

words)
(For evaluating comprehension skill and communication skill)
o First select the one topic (as we have to write only one out of
three topics) which you are confident and write bullet points on
Rough Work Sheet and then give numbering priority wise, so
that flow of Essay is well written.
o How you understood regarding the topic to be reflected in the
entire Essay.
o Do not concentrate only on one or two points, try to write the
important points in the given space. Strictly restrict writing only
to the space provided as this will be considered for scoring.
o Try to see your handwriting is legible and avoid overwriting.
o Do not change black / blue pen during the essay writing, write
the entire content with the same pen.
o Avoid spelling mistakes and ensure clarity of thought.
o Abbreviations if any please expand in the essay.
o Keep first 4 lines for introduction / objective and last 4 lines for
conclusion. In the remaining lines, write the contents in a logical
flow.
o The essay should give an overall impression about your
command over comprehension and communication skill.
***********
499
i. Atmanirbhar Bharat
Atmanirbhar Bharat, which translates to 'self-reliant India' or 'self-sufficient India', is a
policy formulated by Prime Minister of India, Shri. Narendra Modi for making India "a
bigger and more important part of the global economy”. It envisages for pursuing
policies that are efficient, competitive and resilient, and being self-sustaining and self-
generating. Atmanirbhar Bharat does not mean "self-containment", "isolating away
from the world" or being "protectionist". The first mention of this came in the form of
the 'Atmanirbhar Bharat Abhiyan' or 'Self-Reliant India Mission' during the
announcement of India's COVID–19 pandemic related economic package on 12 May
2020.
Its proponents have said that this self-reliant policy does not aim to be protectionist in
nature. In May 2020, the Prime Minister laid down the five pillars of 'Atmanirbhar
Bharat' which are stated as Economy, Infrastructure, Technology-driven Systems,
Vibrant Demography and Demand.
As part of the Atmanirbhar Bharat package, numerous government decisions have

taken place such as changing the definition of MSMEs, boosting scope for private
participation in numerous sectors, increasing FDI in the defence sector; and the vision
has found support in many sectors such as the solar manufacturing sector.
Examples of initiatives towards self-reliance:

The growth of India's Personal Protective Equipment (PPE) sector from zero
before March, to 4,50,000 pieces a day by the beginning of July, is considered as
a fine example of a self-reliant India. The PPE industry in India has become
a Rs.10,000 crore business in three months, the second largest after China.
The largest fund in the country worth Rs.21,000 crore (US$2.9 billion) was setup
by the IIT Alumni Council with the aim of supporting the mission towards self-
reliance.
India's own 'Made in India' 5G network was announced by Reliance Industries and
Tech Mahindra stating that they have the capability to build and run an entire 5G
network in India.
The Defence Ministry has given a big push to Atmanirbhar Bharat initiative by
imposing an "import embargo on 101 items" in a phased manner over a period of
5 years.
Ministry of Chemicals and Fertilisers envisages with implementation of
Atmanirbhar Bharat initiatives, India will be self-reliant in fertiliser production by
2023 .
Coir Udyami Yojana aims to develop the coir-related industry’s sustainable
development.
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Atmanirbhar Bharat
Govt. Of India announced new fresh stimulus measures which are the subsequent
steps in the series of stimulus announcements - Atmanirbhar Bharat 3.0. The intent of
this announcement is to give a much-needed boost to COVID-19 hit economy and
stimulate employment in the formal as well as the informal economy. The support
measures include:
• Subsidy support to employees engaged in establishments through Aadhaar

seeded EPFO accounts,
• Enriching ease of doing business,
• Extending the deadline for the CLGS Scheme (Emergency Credit Line
Guarantee Scheme),
• Production-linked support to key sectors,
• Upgrading housing infrastructure,
• Subsidized Fertilisers for Agriculture,
• Boost for Rural Employment and Exports.
One of the objectives behind the recent announcements under Atmanirbhar Bharat
3.0 is to lend benefit to individuals and companies who lost their jobs because of
the Coronavirus induced lockdown. Slogans initiated under Atmanirbhar Bharat
include 'vocal for local', 'local for global' and 'make for world'.
Challenges:
The challenges to be addressed for the success of Atmanirbhar mission are:
1. It may not be feasible to replace all imports in the immediate near future. For
example, India imports $65 billion worth of goods and services from China
alone. Most of these imports are of essential items — raw materials,
components and intermediates required in producing finished goods including
life-saving pharmaceuticals sector.
2. Replacement of the entire eco-system with indigenous industries require huge
budgetary support in the form of incentives and subsidies.
3. Strong foreign policy to be focused to handle reciprocal actions from other
countries
With the challenges are in the knowledge of the Policy makers, it is expected that
Atmanirbhar Bharat could become a successful policy and creates a virtuous cycle of
growth to elevate the country for a better ranking.
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501
ii. BLOCKCHAIN TECHNOLOGY IN BANKING
A blockchain is an anonymous online ledger that uses data structure to simplify the
way we transact. It is a decentralized, distributed, and public digital ledger that is used
to record transactions across many computers so that any involved record cannot be
altered retroactively, without the alteration of all subsequent blocks. This allows the
participants to verify and audit transactions independently and relatively
inexpensively. A blockchain database is managed autonomously using a peer-to-
peer network and a distributed time-stamping server. Blocks store information that
distinguishes them from other blocks with a unique code called a “hash”. Hashes are
cryptographic codes created by special algorithms. The USP of blockchain is that it
allows two parties to execute a transaction without any intermediary. Blockchain allows
financial institutions to execute and verify transactions discretely without any human
intervention.
Blockchain Technology in Banking
All major banks are experimenting with blockchain as they can use it for money
transfers, record keeping and other back-end functions. The blockchain application
replicates the paper-intensive international trade finance process as an electronic
decentralised ledger, that gives all the participating entities, including banks, the ability
to access a single source of information. It also enables them to track documentation
and authenticate ownership of assets digitally, as an un-alterable ledger in real time.
Indian IT service providers like Infosys and TCS have been throwing their weight
around blockchain technology. Both these companies are using blockchain
mechanism to create core banking platforms for banks. Blockchain Technology in
Banking & Financial sector is deployed for verification of KYC, Smart Contracts,
Clearing & Settlement, Trade Finance, Syndicated Loans, Payments, Trading
Platforms, etc
502
Benefits for Banks & Financial Institutions

The following are the benefits for Banks & Financial Institutions using Blockchain
Technology:
i. Enhanced Security
ii. Reduced Costs
iii. True traceability
iv. Improved Speed and highly efficient
v. Greater Transparency
vi. Instant Settlements
vii. Better Financial Products
viii. Reduced Counterparty Risks
ix. Improved Contractual Performance
x. Money Transfers
xi. Reduced Fraud via Self Sovereign Identity
xii. Eliminates Risks of Central Database
Way forward
Financial institutions need to focus on collaboration with the ecosystem before they
launch any of the use cases. The operational effort to get the ecosystem to accept the
new system would be huge and acceptance could be difficult. Hence, financial
institutions need to spend effort to convince the ecosystem for a decentralised
solution. The real benefits of blockchain would be when financial institutions are able
to work with other ecosystem players to redefine the business model.
*******************
503
iii. Central Bank Digital Currency (CBDC)

Central Bank Digital Currency (CBDC), also called digital Fiat Currency or Digital Base
Money is the digital form of fiat money (a currency established as money by
government regulation, monetary authority or law). The present concept of CBDCs
was directly inspired by Bitcoin, but CBDC is different from virtual
currency and cryptocurrency, which are not issued by the State and lack the legal
tender status declared by the Government. Proposed implementations may not even
use any sort of distributed ledger. CBDCs are presently in the hypothetical stage, with
some proof-of-concept programmes.
Features
CBDC is a high-security digital instrument; like paper bank notes. It is a means of

payment, a unit of account, and a store of value. And like paper currency, each unit is
uniquely identifiable to prevent counterfeit.
Digital Fiat Currency (DFC) is part of the base money supply, together with other forms
of the currency. As such, DFC is a liability of the central bank just as physical currency
is. It's a digital bearer instrument that can be stored, transferred and transmitted by all
kinds of digital payment systems and services. The validity of the digital fiat currency
is independent of the digital payment systems storing and transferring the digital fiat
currency.
Proposals for CBDC implementation often involve the provision of universal bank
accounts at the central banks for all citizens.
Benefits & Impacts
Digital Fiat Currency is currently being studied and tested by governments and central
banks in order to realize the many positive implications it contributes to financial
inclusion, economic growth, technology innovation and increased transaction
efficiencies.
Here is a list of potential advantages:
• Technological efficiency: Instead of relying on intermediaries such as banks

and clearing houses, money transfers and payments could be made in real time,
directly from the payer to the payee.
504
• Financial inclusion: Safe money accounts at the central banks could constitute a
strong instrument of financial inclusion, allowing any legal resident or citizen to be
provided with a free or low-cost basic bank account.
• Preventing illicit activity: A CBDC makes it feasible for a central bank to keep
track of the exact location of every unit of the currency due to the centralized,
database form. Tracking can be extended to cash by requiring that the banknote
serial numbers used in each transaction be reported to the central bank. This
tracking has a couple of major advantages:
o Tax Collection: It makes tax evasion much more difficult, since it would
become impossible to use methods such as offshore banking and unreported
employment to hide financial activity from the Central Bank or Government.
o Combating crime: It makes it much easier to spot criminal activity (by
observing financial activity), and thus put an end to it. Furthermore, in cases
where criminal activity has already occurred, tracking makes it much harder to
successfully launder money, and it would often be straightforward to instantly
reverse a transaction and return money to the victim of the crime.
• Cost saving for Central Banks: Digital currencies issued by central banks would
provide as an alternative to physical cash. With wider level acceptance, the
physical cash may be slowly phased out of circulation leading to huge cost saving.
• Safety of payments systems: A secure and standard interoperable digital
payment instrument issued and governed by a Central Bank and used as the
national digital payment instruments boosts confidence in privately controlled
money systems and increases trust in the entire national payment system while
also boosting competition in payment systems.
• Preservation of seigniorage income: Public digital currency issuance would
avoid a predictable reduction of seigniorage income for governments in the event
of a disappearance of physical cash.
• Monetary policy transmission: The issuance of central bank base money
through transfers to the public could constitute a new channel for monetary policy
transmission, which would allow more direct control of the money supply than
indirect tools such as quantitative easing and interest rates, and possibly lead the
way towards a full reserve banking system.
505
• Financial safety: CBDC would limit the practice of fractional reserve banking and
potentially render deposit guarantee schemes less needed
Risks:
A general concern is that the introduction of a CBDC would precipitate potential bank
runs and thus make banks' funding position weaker. However, the Bank of England
found that if the introduction of CBDC follows a set of core principles the risk of a
system-wide run from bank deposits to CBDC is addressed.
Since most CBDCs are centralized, rather than decentralized like most
cryptocurrencies, the controllers of the issuance of Central Bank Digital Currency can
add or remove money from anyone's account with a flip of a switch. In contrast,
cryptocurrencies such as Bitcoin prevent this unless more than 50% of users are in
agreement. Current CBDCs such as China's Digital Currency Electronic Payment
(DCEP) permit the issuance of new currency, meaning inflation is possible. Bitcoin, in
contrast, cannot create inflation since the supply of currency is locked at a maximum
of 21 million coins, unless 51% of users agree to increase it. This means the risk of
currency being devalued over time is still possible with a CBDC
*****************
506
4. Trade Receivables Discounting System TReDS
Trade Receivables Discounting System (TReDS) is an institutional mechanism set up

in order to facilitate the discounting of invoices for MSMEs from corporate buyers
through multiple financiers. It is a digital platform for MSMEs to auction their Trade
Receivables at competitive rates through online bidding by Financiers i.e Banks. For
on-boarding and operating, all the participants (Buyer i.e Corporates/Seller i.e MSME)
need to register on the TReDS platform. Invoice discounting on TReDS involves three
participants MSME Supplier, Corporate Buyer and Financier. The invoice is uploaded
by either buyer or supplier depending on the method of discounting and is approved
by the other party. Once the invoice is approved the financiers on the platform start to
bid on the invoice. The supplier accepts the bid and the discounted amount is credited
in its account in T+1 day, where T is the day of acceptance.
Benefits of TReDS
The following are the tangible benefits arising out of TReDS:
• Easy Access to Fund: It is a source for lower cost of financing as financing is

based on buyer’s credit profile.
• The improved liquidity will result in efficient working capital management with
low administrative / operational costs involved.
• For Corporates they can better manage their Working capital cycle and make
timely payment to MSME in compliance with MSMED Act.
• For MSMEs, this online trading platform provides hassle free process to get
financing at best rates.
• Transaction Online with no paper work leading to better operational efficiency

and scope for Audit trial.
• Single Platform for sellers, Buyers and Financers reduces disputes and
quicker resolutions
• Competitive Discount Rates
• Seamless Data Flow
• Standardized Practices
507
Discount Rates
There are several rules and guidelines to safeguard the interests of all parties.
For example, financiers cannot bid below the marginal cost of funds-based
lending rate (MCLR) set by the RBI. Here, credit ratings play an important role.
Generally, buyers enjoying good credit ratings get bids close to the MCLR rate.
Currently, there are two RBI-approved online marketplaces (TReDS). These are:
• RXIL (India’s first TReDS platform established by SIDBI in partnership with

NSE and three banks (SBI, ICICI Bank and YES Bank) and
• A.TREDS (a joint venture of Axis Bank and mjunction service)
Challenges
Currently, only a few NBFCs and banks are allowed as financiers. To
expand the market, improve competitiveness, and offer more flexibility,
experts recommend participation from high net-worth individuals. The Know
Your Customer regulations also need to be stream lined.
Overall, TReDS can help SMEs unlock their working capital and ensure
higher efficiency and capital management. Similarly, SME Loans has been
helping Indian SMEs unleash their true potential through cost -effective SME
loans and business finance.
*************
508
5. Essay on Cryptocurrency and its implication in India
Introduction / What is Cryptocurrency
Cryptocurrencies, also known as Digital Currency or Virtual Currency are worldwide,

decentralized, user-to-user used payment platforms.
Cryptocurrency use Distributed ledger system (DLS), It’s also known as block-chain
analysis, to keep the transaction of cryptocurrency safe, secure, as well as
anonymous.
There are so many forms of cryptocurrency in the market such as Libra, Bitcoin,
Ethereum, Litecoin, and Ripple, but “Bitcoin” is one of the most famous
cryptocurrencies founded by Mr. Satoshi Nakamoto in the year of 2009.
History of Cryptocurrency in India
Former Finance Minister, Mr. Arun Jaitley said in the budget speech of 2018 that the
government doesn’t consider cryptocurrencies as a legal tender.
In 2018, RBI banned all the functions and entities which is related to the sale and
purchase of cryptocurrencies. In July 2019, the Inter-ministerial panel recommends
completing the ban on all cryptocurrencies. and also said to implement new rules to
fines and punishments for violation of its.
As per the Cryptocurrency and Regulation of the official Digital Currency Bill, 2021,
the Indian Government wants to create an official digital currency to be issued by the
reserve banks of India and it also prohibits all the other private cryptocurrencies
in India.
Advantages Of Cryptocurrency
- As compared to our conventional currencies, the transactions

of cryptocurrency are quicker, safer as well as cost-effective.
- The technology that is used in cryptocurrencies is fully encrypted, which
makes the personal data of its users anonymous. and It also protects the
user from cybercrime, fraud along with maintaining privacy.
- There are low transaction fees because miners of cryptocurrency are
simply rewarded some amount of cryptocurrency from the network itself.
so there are no fees or typically little fees for core transactions.
- You can only access your own part of the cryptocurrency via a digital
key.
- Cryptocurrency is used as a Free flow and Global reach-Cross border
Accessibility.
- The Counterfeiting of Cryptocurrency is also very tough.
- Cryptocurrency can be used as a key technology to strengthen the
financial system.
- It’s also helpful for a country that has a weak economy.
509
Disadvantages of Cryptocurrency
• As the transactions are anonymous, some persons may be

used cryptocurrencies for illegal activities like selling drugs, weapons,
and child pornography, etc.
• There is no central agency for regulating the transactions
of Cryptocurrency, So, it makes it harder for RBI as well as the
government to manage the monetary policy.
• Transaction of cryptocurrency can be done only through the internet. But
uneducated people and people who do not have proper internet facilities
will not be able to take advantage of it.
• The rates of Cryptocurrency are very volatile, which can cause huge
losses or benefits in a very short time. Due to this, speculation or betting
can also be promoted.
• Cryptocurrency can also prove to be a threat to official currency and
monetary systems.
• People can also use cryptocurrency to Avoidance of Tax compliances.
Future Of Cryptocurrency
1. If work is done to overcome the shortcomings of cryptocurrency, hence,

it can complete from the banking sector.
2. Many people are investing in cryptocurrencies to become rich- not for
the intended purpose of easier money transactions -As a result, it may
disappear after some time.
3. Blockchain technology – every transaction is connected – can take steps
on money laundering by implementing it in the banking sector.
What are the uses of Cryptocurrency?
1. Purchase of products and services which accept cryptocurrencies for

transactions.
2. For Money Transfers without any charges
3. Get paid in cryptocurrency
4. Investment opportunities
Conclusion
Despite all the risks, the encrypted technology in cryptocurrency can prove to be an
asset for the financial marketplace. Most countries are opting for a regulation
on cryptocurrency rather than banning it.
If India also regulates these cryptocurrencies and invest in DLS technology then it will
prove to be good for the future. A “Digital Rupee” (INR) perhaps could be the future/
solution
510
6. Bad Bank
Bad times peak only as a harbinger of Good times. The announcement of establishment of
Bad Bank in the Union Budget is a much-awaited initiative to relieve the throes of toxic assets
in the Indian Banking System. The Finance Minister has announced in the Union Budget 2021-
22 that an Asset Reconstruction Company (ARC) and Asset Management Company (AMC)
would be established in order to address the stressed assets of ₹2.25 trillion in the banking
system. Though there are 27 Asset Reconstruction Companies registered with RBI, there is
no Asset Rehabilitation Agency under the
Government’s stake holding. To address the pressing issue of NPAs, establishment of Public
Sector Asset Rehabilitation Agency has been argued in The Economic Survey 2016-17. The
idea of Bad Bank taking shape could not have been better timed as there has been a steep
rise in discount rates from 30% to 60% of the Book Value because of the regulatory norms of
upfront payment of cash of 15% by Asset Reconstruction Companies.
Bad Bank - Bits and Bytes
The US-based Mellon Bank created the first Bad Bank in 1988, after which the concept has
been implemented in other countries including Sweden, Finland, France and Germany. The
Troubled Asset Relief Programme (TARP) introduced in the US in 2008 to deal with a problem
of stress in the financial system is a similar programme of the United States Government for
purchasing toxic assets and also equity from Financial
Institutions in order to fortify the financial sector. Though the name, ‘Bad Bank’ conveys a
notion that it would function as a bank but has bad loans to start with. Technically, a Bad Bank
is an Asset Reconstruction Company (ARC) or an Asset Management Company that takes
over, manages and finally recovers the bad loans of commercial banks over a period of time.
Bad Banks do not involve in Deposit taking and Lending like a commercial bank but helps
commercial banks to clean up their loan books and resolve bad loans. The Bad Loans takeover
is usually lower than the Loan Book Value and the Bad Bank endeavors for maximum
recovery.
Bad Bank - Broad Intent:
The proposed Bad Bank is envisaged to accomplish the following objectives:
o To cleanse the Balance Sheets of Banks in India.

o To strengthen the banks to reach the regulatory requirement of capital adequacy by
mobilising fresh capital from the market.
o To focus on credit growth and thereby shore up investment and the much-needed
economic growth.
To put it in brief, the Bad Bank would enable the ailing Indian Banks to trim their accumulated
losses and concentrate on their core banking business of lending.
Ballooning Bad Loans
Every Business is vulnerable to risk and is more with Banking Business. Indian Banks have
mounted stressed assets due to a host of factors including continuous global economic
slowdown which has got exacerbated by Covid-19, stalled infrastructure projects coupled with
cost and time overruns, inordinate delay in getting various clearances, land acquisition issues,
aggressive credit growth during 2005 to 2012 without commensurate credit appraisal and
scrupulous monitoring standards, etc. The size of stressed assets in the banking system would
have further accumulated to a perilous high level but for the RBI’s COVID-19 relief package.
RBI has indicated that the quality of the assets in the Indian Banking System would sharply
deteriorate in the near future. The Economic Survey has suggested infusing of additional
capital in addition to the cleansing of the Banks’ balance sheets to ensure economic uptick.
With a very little fiscal space available with the Exchequer, a plausible solution is creation of
a government-owned Bad Bank. The present private-owned Asset Reconstruction Companies
511
(ARCs) have made little to no progress as Banks in India have been quite hesitant in selling
their assets to the existing ARCs. The underlying reason is that neither the Banks nor the
ARCs are willing to absorb the losses.
Benefits of Bad Bank
If the Bad Bank is structured as a successful business model, the following can be the
expected benefits:
o Banks’ capital can get freed up with monetization, at a discount, of the saddled NPAs
resulting in better compliance of the Regulatory Capital Norms.
o Reduced Provisioning requirement and resultant better profitability
o Loan book can grow at a healthy pace resulting in growth trajectory of the economy
o Bad Banks, with their specialization, can be expected to have better recoverability of
impaired assets
o Cleansing up of Public Sector Banks helps the Govt. to achieve its sell-off plans
Bad Bank – Big Questions to be answered
The following are the issues which are to be addressed by the proposed Bad Bank, should it
merit the creation:
o Whether any type of Bad Loan will be taken over or will there be any preconditions for
the take over?
o Will only those loans that have turned stressed due to the economic distress stemming
from the COVID-19 pandemic be included? Or will the credit exposure to sectors like
Real Estate & Power which had failed even prior to the COVID-19 hit should also to
be brought in its scope?
o Considering that banks have in the past been reluctant to decide on the extent of
haircut they were willing to take, how will the prices at which these loans are
transferred to the bad bank be determined?
o Who will absorb the losses?
o Will the new entity be professionally managed, operating at an arm’s length from the
political dispensation? Or will political considerations influence decision making?
o In order to make the bad bank successful, valuation of the NPAs should be undertaken
by professional, recognised and independent institutions. However, establishing of a
Bad Bank may not be a cake-walk given the exposure in off-balance Sheet of the GOI
along with other legal roadblocks
Conclusion:
Specialization, the mark of Professionalism, stands the order of the day. Banks are
specialised in lending but not in resolving the mammoth stressed assets. They do not
have the conducive climate for NPA recovery nor possess the required level of legal
proficiency for recovery. Apart from that, the banks need to focus on up skilling of in
Bank personnel in Loan recovery, capacity building, monitoring of risk and risk
management in order to stay ahead of the learning curve. However, it is to be
understood that a bad bank does not address the structural weaknesses in public
sector banks. Neither does bank recapitalisation. Also, the bigger picture of addressing
the systemic issues should not be lost sight of. Necessary care to be taken to ensure
the creation of Bad Bank results in shifting of Bad Loans from one pocket to the other.
The merits of establishing a Bad Bank far outweighs the shortcomings and hence is
worth the initiative. With NPAs choking the banking system and the lendability for
economic revival, the Govt’s Bad Bank could not have been better timed.
***************
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7. Evolution of Banking scenario in Independent India

The banking system is considered as the backbone of a nation's economy. There were almost
600 banks present in India before independence. At the time independence, the entire Banking
sector was under private ownership. The banking in India was in the primitive stage of banking.
The rural population of the country had to dependent on small money lenders for their
requirements. The banks mostly catered to the needs of large industries and big business
houses. Sectors such as agriculture, small-scale industries and exports were lagging. The
poor masses continued to be exploited by the moneylenders. To solve these issues and better
development of the economy the Government t of India took various strategies as detailed
below:
Phase of Banking till 1990:
➢ Nationalised the Reserve Bank of India in 1949.
➢ The Banking Regulation Act enacted in 1949.
➢ The Imperial Bank of India was nationalised in 1955 and named the State Bank of
India.
➢ With the view of economic planning, nationalization emerged as an effective measure
and two phases of nationalisation of banks took place in the years 1969 and 1980
➢ On the recommendation of the Narasimham Committee, Regional Rural Banks (RRBs)
were formed in 1975 to serve the large unserved population of rural areas and promote
financial inclusion
➢ To meet the specific requirement from the different sectors i.e., agriculture, housing,
foreign trade, industry, various apex level banking institutions such as NABARD
(1982), EXIM (1982), NHB (1988), SIDBI (1990) etc were also set up.
Phase of Banking after 1991:
From 1991 onwards, there was a sea change in the Indian economy. The major thrust of the
Narasimham committee recommendations (1991) was to make the banks more competitive,
strong and conducive to the stability of the financial system. The committee suggested for no
more nationalisation of banks. The committee gave its recommendation to allow the entry of
private sector players into the banking system and RBI permitted the entry of private entities
such as ICICI, HDFC, Axis Bank, IndusInd Bank. In 1998, the Narasimham committee again
recommended the entry of more private players and RBI gave a license to Kotak Mahindra
Bank (2001), Yes Bank (2004).
Further as per the committee recommendations, Foreign banks would be allowed to open
offices in India either as branches or as subsidiaries. Accordingly, during this era foreign banks
such as Citibank and Bank of America set up branches in India.
For financial inclusion, RBI proposed to set up Payment Banks and Small Banks and they
were permitted to set up their branches throughout India. IDFC Bank, Bandhan Bank etc were
emerged.
Major reforms in Indian Banking System:
➢ Prudential norms relating to income recognition, asset classification, provisioning and
capital adequacy were introduced in a phased manner since April 1992.
➢ The Board for Financial Supervision (BFS) was set up in July 1994 within the Reserve
Bank to attend exclusively to supervisory. BFS instituted a computerised Off-site
Monitoring and Surveillance (OSMOS) system for banks for ‘early warning system’
(EWS) and as a trigger for on-site inspections of vulnerable institutions.
➢ A phased reduction in the SLR was undertaken and the SLR was progressively brought
down from the peak rate of 38.5 percent in February 1992 to the present level of 18
percent.
➢ The CRR was progressively reduced from the peak level of 15 per cent to 4 per cent.
➢ The Banking Ombudsman Scheme was introduced in June 1995 under the provisions
of the BR Act, 1949.
➢ The maximum permissible bank finance (MPBF) was phased out from April 1997.
513
➢ To strengthen the capital base of banks, the capital to risk-weighted assets ratio for
banks was tightened.
➢ Government announced an increase in the FDI limit in private sector banks under the
automatic route to 49 per cent in 2001 and further to 74 per cent in March 2004 to
liberalise foreign investment in the banking sector
➢ The Banking Codes and Standards Board of India (BCSBI) was set up by the Reserve
Bank as an autonomous and independent body adopting the stance of a self-regulatory
organisation to provide customer services as per the agreed standards and codes.
➢ A risk-based supervision (RBS) approach that entails monitoring according to the risk
profile of each institution was initiated on a pilot basis in April 2004.
➢ Banks were advised to introduce a facility of ‘no frills’ account with nil or low minimum
balances in November 2005.
➢ Banks were permitted to utilise the services of non-governmental organisations
(NGOs/ SHGs), micro-finance institutions as intermediaries in providing financial and
banking services using business facilitator and business correspondent (BC) models.
➢ The Recovery of Debts Due to Banks and Financial Institutions Act was enacted in
1993, which provided for the establishment of tribunals for expeditious adjudication
and recovery of non-performing loans.
➢ The Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest (SARFAESI) Act, 2002 was enacted in 2002.
➢ To improve their profitability in a competitive environment, banks also increasingly
diversified their activities.
➢ The restructuring of RRBs by merging them sponsor bank-wise at the state level made
them larger and stronger to serve as a better instrument of rural credit delivery.
➢ Credit growth to SMEs also accelerated through various initiatives of the government
such as MSMED ACT, CGTMSE, MUDRA etc.
➢ Various subsidy schemes, Debt waivers, restructuring activities were introduced for
cheaper cost of borrowings and to revive the economy.
➢ Customer Service and Financial Literacy were taken care by the central bank.
➢ Technology ensured a rapid transformation of the banking sector. ATMs, Net Banking,
Mobile Banking, RTGS/ NEFT / UPI platform etc playing a vital role in the banking
industry.
➢ Various relief measures were formulated and implemented to support the individuals
and industries in the COVID-19 pandemic.
Thus, post-independence the Indian banking industry have evolved from primitive state to
modern stage of banking and provide robust support to a nation that is ever hungry for financial
development and drives the economy.
***************
514
8. Account Aggregator
Introduction:
In recent years, India has been taking significant strides towards becoming one of the
most progressive digital economies in the world. The government’s initiatives, such as
Digital India, have pushed the country towards adopting digital payments and online
transactions, making financial services more accessible to the masses.
However, with increased digital adoption comes the challenge of managing financial
data across various institutions. This is where Account Aggregator (AA) comes in as
a game-changer in the financial ecosystem.
What is an Account Aggregator?
Account Aggregator is a digital platform that allows customers to access their financial data
from multiple sources, all in one single place. While it is a silver lining for millions of individuals
to have greater control over their financial records, it also is a huge push for the lending and
financial institution markets.
The Reserve Bank of India (RBI) has authorized AA as a third party regulated entity to bring
together all Financial Information Providers (FIPs) such as banks, mutual fund houses etc. to
connect with entities, Financial Information Users (FIUs,) such as banks, individuals etc., who
want to use this financial data optimally, enabling billions of accounts to share data seamlessly
and securely, based on the consent of the customer.
Impact of Account Aggregator on financial institutions and users

Financial institutions: AA has helped financial institutions to streamline their
operations by enabling faster credit approvals, reducing the risk of fraud, and
improving customer experience. The platform also provides insights into customer
behavior and preferences, helping institutions offer personalized services and
products.
Users: AA has made it easier for customers to manage their finances by providing a
single window to access their financial data. The platform has also increased
transparency and reduced the risk of errors in financial transactions. According to a
survey by Dalberg Advisors, 57% of respondents said that they would be more likely
to use digital financial services if they had access to a single platform to manage their
finances.
Existing Use Cases/Services of Account Aggregator

The AA platform leverages the power of Application Programming Interfaces (APIs) to access
customer data and help them manage their finances better.
Currently, the platform is designed to share bank transaction data between banks and
individuals. For instance, if an individual wants to apply for a loan or fill in their Income Tax
Returns and have several bank accounts, it becomes time consuming and tedious to pull bank
statements from different bank accounts.
515
The AA framework pools the bank statements from current and savings accounts across
banks at one place, delivering a swift, secure, reliable and real-time service. This entire
process is solely based on the individual’s consent for data sharing, thereby making this whole
space 100% safe for data transfers.
Benefits of Account Aggregators

1. Improved Access to Financial Data
2. Increased Efficiency
3. Better Customer Service
4. Increased Convenience
5. Improved Security
6. Increased Profitability
7. Increased Customer Loyalty
8. Increased Revenue
9. Better Customer Experience and transperancy
10. Increased Efficiency
Future Services Scope of Account Aggregator

Account Aggregator is still in its early stages, and there is a lot of potential for growth and
development. Gradually, AA will include the entire spectrum of financial data for data sharing
including tax data, pensions data, securities data (mutual funds and brokerage), and insurance
data. For businesses, the inclusion of the GSTN service will also play a dominant role in
simplifying credit access for MSMEs.
Challenges and Roadblocks

1. AAs only support individual accounts, whereas Joint accounts are very common in
India and are used by families. Similarly, small and medium businesses rely on current
accounts. Therefore, the MSME sector and many ordinary citizens will be unable to
benefit from AAs
2. While most major banks have gone live on AAs, there are some noticeable holdouts
which are slowing down the adoption.. In the absence of such banks from the
ecosystem, it is unlikely the financial industry will move to a completely paperless
process.
3. While most major banks have gone live, major implementation issues like data quality
issues are holding back the adoption of AAs
4. India's collective potential and will democratize financial services in India. We
understand that success requires need for cooperation between financial information
providers, regulators, and, most importantly, the people who rely on AAs
Conclusion
Account Aggregator has emerged as a significant player in the Indian financial ecosystem,
providing a single window for customers to manage their finances across various institutions.
In fact, India is one of the few nations where these continuous technological innovations and
the stupendous growth of digital connectivity has stemmed from the public sector.
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9. G20 India Presidency

Inception & Elevation of G20
The G20 was founded in 1999 after the Asian financial crisis as a forum for the Finance
Ministers and Central Bank Governors to discuss global economic and financial issues
The G20 was upgraded to the level of Heads of State/Government in the wake of the
global economic and financial crisis of 2007, and, in 2009, was designated the “premier
forum for international economic cooperation”.
The G20 Summit is held annually, under the leadership of a rotating Presidency. The
G20 initially focused largely on broad macroeconomic issues, but it has since
expanded its agenda to inter-alia include trade, sustainable development, health,
agriculture, energy, environment, climate change, and anti-corruption.
The G20 Presidency is responsible for bringing together the G20 agenda in
consultation with other members and in response to developments in the global
economy.
G20 Countries:
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia,
Italy, Japan, Mexico, Republic of Korea, Republic of South Africa, Russia, Saudi
Arabia, Turkey, United Kingdom, United States of America, European Union (EU)
India's G20 presidency
India convened the G20 Leaders' Summit for the first time in the country in 2023 The
18th G20 Summit was successfully conducted at Bharat Mandapam in New Delhi
during 9-10 September, 2023., India's G20 Presidency would be a watershed moment
in her history as it seeks to play an important role by finding pragmatic global solutions
for the wellbeing of all.
G20 Theme:
“Vasudhaiva Kutumba-Kam,” or “One Earth, One Family, One Future,” is the focus of
India’s G20 Presidency
Outcome of G20 summit:
1. Russia-Ukraine War
G20 nations agreed that states cannot grab territory by force and highlighted
the suffering of the people of Ukraine, but avoided direct criticism of Russia for
the war
2. Inclusion of African Union
The 55-member African Union was formally made permanent member of the
G20, on par with the European Union, in order to make the grouping more
representative. Until now only South Africa was a member of the G20.
3. India-Middle East-Europe Economic Corridor (IMEE-EC)
A multinational rail and shipping project linking India with the Middle East and
Europe has been announced.The corridor would include India, Saudi Arabia,
the United Arab Emirates, Jordan, Israel and the European Union.
4. Climate change
The G20 leaders agreed to pursue tripling renewable energy capacity globally by 2030
and accepted the need to phase-down unabated coal power.
5. Green Development Pact
• Envisages a green development pact
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• Endorses high-level principles on lifestyle

• Voluntary principles of hydrogen
6. Global bio fuel alliance
It is an alliance driven by India, the United States, and Brazil, is a concerted
effort to address pressing energy and economic challenges through
sustainable biofuels.
7. Digital Public Infrastructure (DPI)
A G20 Framework for Systems of Digital Public Infrastructure, a voluntary
framework for the development, deployment and governance of DPI has been
unanimously accepted.The declaration also mentions the approval of India’s
plan to build and maintain Global Digital Public Infrastructure
Repository.The declaration takes note of the proposal to create One Future
Alliance, a voluntary initiative
8. Reform of Multilateral Development Banks
The member countries endorsed the G20 Roadmap for Implementing the
Recommendations of the G20 Independent Review of MDBs Capital
Adequacy Frameworks and called for its implementation.
9. G20 Satellite Mission
India has proposed to launch the G20 satellite mission for environment and climate
observation.
10. Other important outcome
• accelerate the full and effective implementation of the 2030 Agenda for
Sustainable Development;
• act on an agreement to triple renewable energy capacity globally by 2030;
• pursue low-GHG/low-carbon emissions, and climate-resilient and
environmentally sustainable development pathways.
• scale up financing from all sources and accelerate efforts towards achieving the
Paris Agreement, including its temperature goal.
• improve access to digital services and digital public infrastructure and leverage
digital transformation opportunities to boost sustainable and inclusive growth.
• close gender gaps and promote the full, equal, effective and meaningful
participation of women in the economy as decision-makers.
• call for a reform of the multilateral system and reform the international
development finance system including more effective multilateral development
banks (MDBs);
• commit to a rules-based, non-discriminatory, fair, open, inclusive, equitable,
sustainable and transparent multilateral trading system, with the World Trade
Organization at its core.
Conclusion
The purpose of establishing G20 is to create an atmosphere that supports equitable
global growth and development. They bring together the most powerful economies in
the world, both developed and emerging, to talk about global financial and economic
stability.
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Topics on Essays for practice

1. Bad bank and its role in tackling NPA
2. Impact of increase in Repo Rate
3. Whistle Blower Policy
4. Artificial Intelligence in Agriculture
5. CBDC / Cryptocurrency
6. Positive pay system
7. International year of Millets
8. Ethical Banking / Ethical doing of business
9. Fraud Prevention
10. Spreading Positivity
11. Cyber Security in Banking
12. Data Governance
13. Is dress code or uniform is important in a company
14. What went wrong in Srilanka
15. Impact of economy due to Russia – Ukraine War
16. Woman Security – It is our responsibility ( GARIMA-POSH)
17. Branding and Image Building of SBI
18. Natural forming / Organic farming
19. Impact of FDI in Indian Banking System
20. Payment Bank/ Fintech/Bigtech and its role
21. Cost of Compliance
22. SBI in sustainability
23. Do it right at first time and always
24. I am the I in SBI
25. Importance of CRM
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519
Business correspondence
1. A term deposit receipt favouring A for Rs.35,000/- is due for payment next
month. A has nominated his adopted son B to receive the deposit in case of his
death. You have received a notice from the advocate of one X claiming to be the
brother of A. The Notice advises you not to pay the amount to B as the deposit
belongs to the Joint Hindu Family of A. Please write a suitable letter to the
advocate.
(Branch Standard Letter Head preferably in Bilingual or Trilingual)
ADDRESS OF BRANCH
______________
Branch Letter No: 31/2020-21 Date: 30.11.2020
Dear Sir,
TERM DEPOSIT FOR RS 35,000/- STANDING IN THE NAME OF SHRI.______:
With reference to your letter No. 25 dated 27.11.2017 we have to advise that, Sri B,
the nominee of the captioned deposit has made claim to the proceeds of the deposit
and settlement has since been made by the Bank.
2. As you know, under section 45ZA of the Banking regulation Act, the bank has to
make payment of the deposit to the nominee. The Fixed deposit stands in the
individual name of the depositor who had made a valid nomination under the above
section. The claim made by your client that the deposit belongs to the joint family and
not to the deceased in his individual capacity is a matter to be settled between him
and the nominee.
3. The bank is, under an obligation to pay the amount to the nominee. Unless therefore
an order issued by a competent court restraining payment to Sri B is served on us
within 15 days here of, we will pay the amount to Sri B immediately on the expiry of
the said period of 15 days without any further reference to you.
Yours sincerely,
Sd/-
BRANCH MANAGER.
(NAME OF THE OFFICIAL, DESIGNATION, CONTACT NO)
520
2. Write an appreciation letter to a Branch under your control (as a Regional

Manager), congratulating them for their success in migrating more than 80% of
their customers to Alternate Channels
ADDRESS OF REGIONAL OFFICE IN REGIONAL LANGUAGE HINDI ENGLISH
The Branch Manager

State Bank of India
_______________Branch
RBO/HR Letter No:631/2020-21 Date: 30.11.2020
Dear Sir,
CONGRATULATIONS SHIFTING CUSTOMER TO ALTERNATE CHANNEL
I congratulate you and your team members and put on record my appreciation on
account of migrating 89% of your customer to Any Time/Digital Channels, which has
successful in decluttering the branch.
2. Your branch became the first branch in the circle to achieve this excellent
performance.
3. Please convey my congratulation to your team members. I trust you will lead your
team and continue your efforts to achieve more and more such performances in the
days to come.
With best wishes
Yours faithfully,
Sd/-
REGIONAL MANAGER.

521
3. You are the Branch Manager of the Branch situated in an agricultural area
where sugarcane is predominately cultivated. Recently, a new sugar factory is
opened in the area. Write a letter to the company for sourcing their business,
explaining the relevant schemes and details.
ADDRESS OF BRANCH IN REGIONAL LANGUAGE HINDI ENGLISH
To
_____________.
Sugar & Co. …
Branch Letter No: 86/2020-21 Date: 30.11.2020
Dear Sir,
CONTACT FORMING AND FINANCIAL ASSISTANCE TO THE SUGARCANE
FARMERS:
It is our pleasure to have a sugar factory in this area. We take this opportunity to
appreciate your efforts in completing the commissioning of such a factory within short
span of time. We would like to advise you the following points for your information:
2. We serve more than 2500 Agricultural borrower who have availed loans for different
agricultural activities; most of the borrowers are progressive farmers. Some of the
farmers are facing problems in marketing their produce due to lack of any support.
3. You may be aware that sugarcane is predominately cultivated in the area and most
of our borrowers have availed finance for it. Therefore, we request you to spare your
valuable time to discuss the matter like contract farming etc. in details, which will surely
boost mutual business interest apart from serving the farmers.
4. We will be visiting your office once we receive the communication about the date
and time Thanking you in anticipation.
Yours sincerely,
Sd/-
BRANCH MANAGER.
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4. A Term deposit favouring Mr. Deceased for Rs.100,000/- is due for payment
next weak. The deposit account has nomination in favor of Mr. Nominee. Today,
you have received a notice from an advocate of Mr. Claimant, claiming to be the
son of the deceased. The notice advises you to stop payment to the nominee,
as the deposit belongs to the Joint Hindu Family of the deceased. Please write
a suitable reply.
State Bank of India
__________ Branch
Ref.No. MIS Date:
To
Shri …………….
Advocate, _____________________
_____________________
Dear Sir,
TERM DEPOSIT IN THE NAME OF Mr. DECEASED
With reference to your letter dated …….., we have to advise as under. We have
received an application for claiming the deceased term deposit by Mr. Nominee, who
is the nominee of the captioned deposit that the depositor Mr. Deceased has expired
on date……………
2. In terms of Nomination Rule under Section 45ZA of the Banking Regulation Act, the
Bank has to make payment of the deposit to the nominee. On our verification of the
records, we confirm that the fixed deposit stands in the individual name of the depositor
who had made a valid nomination under the above Section. According to your notice
on behalf of your client, the deposit belongs to the joint family and not to the deceased
in his individual capacity is a matter to be settled between him and the nominee.
3. The Bank is not part with the said dispute. The Bank is under an obligation to pay
the amount to the nominee. Unless therefore an order issued by a competent court
restraining payment to the nominee is served on us. In view of the above we will pay
to Mr. Nominee without any further reference to you.
Yours sincerely,
Sd/-
Branch Manager.
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5. You are a Br. Manager of Scale –III incumbency reported recently. You found
that all old obsolete stationary, computers and furniture are lying in the second
floor. The second floor of the premises is an abandon place since years
together. It is not needed at all considering even the future requirement. The
book values of these assets are zero. You are paying monthly rent of Rs.50000/-
considering the space. The space can be utilized by CPC‘s or any administrative
office purpose. You also find that an NGO intends to conduct free computer
education programme in a village serviced by the bank. NGO is ready to use the
computers and furniture by convert them in such a way they can use it. Please
write a letter to the appropriate authority recommending donating the old
computers and furniture and also inform that the space may be better utilized.
State Bank of India, __________ Branch

Ref.ZO Date:
The Asst. General Manager,
State Bank of India,
Region:
Zonal Office
Dear Sir/Madam,
DISPOSAL OF OBSOLETE FIXED ASSETS
We found that all old obsolete stationary, computers and furniture are lying in the
second floor. The book value of these assets is zero. The second floor of the premises
is an abandoned place since years together. It is not needed at all considering even
the future requirement. We are paying monthly rent of Rs.50000/- considering the
space.
2. The space can be utilized by CPC‘s or any administrative office purpose. We find
that an NGO intends to conduct free computer education programme in a village
serviced by the bank. NGO is ready to use the computers and furniture by converting
them for the proper use.
3. In view of the above, we may be permitted to donate the obsolete unused computers
and furniture and sell the stationary to the bank approved vendor. The space available
in the second floor maybe utilized effectively by the Bank for housing Clearing CPC or
make use of the same in some other way.
Yours faithfully,
Sd/-
Branch Manager.
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6. Write a MEMO letter to a Branch staff under your control (as a Branch
Manager), for unauthorized absence.
ADDRESS OF BRANCH IN REGIONAL LANGUAGE HINDI ENGLISH

MEMO :
Mr.___________
______________
…... ......... .
REGISTERED WITH ACK.
RBO/HR Letter No: 31/2020-21 Date: 30.11.2020
Madam/Dear Sir,
(Then salutation as Madam or Dear Sir as the case may be)
UNAUTHORISED ABSENCE FROM DUTY
It is observed that you are absenting from duty unauthorisedly since……… .
2. You are, therefore, advised to report for duty within 3 days of the receipt of this
Memorandum and explain the reasons for your absence.
Yours faithfully,
Sd/-
BRANCH MANAGER.
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525
Rationale, For & Against, Situation analysis

RATIONALES
RATIONALES
Vacation Policy introduced in the Bank
• A prudent risk containment measure, for increasing the efficiency/
productivity of staff members.
• Risk mitigating approach towards the staff members posted in
Sensitive positions / posts from vigilance point of view and to avert
Frauds.
• This is mandated and covered under the review of Bank’s Risk
Management System by RBI
Compliance related parameters included under Discretionary parameters in
CDS, with an Inclusion of Negative Marks for False Compliance
• To strengthen the compliance culture in our day-to-day banking
activities
• A disincentive to officials who indulge in false compliance
• To give greater thrust to mitigate “Potential and Residual Risks”
Lending by banks to NBFCs for On-Lending classified as Priority Sector
Lending
• To comply with revised RBI guidelines on Priority Sector Lending –
Target and Classification.
• To boost credit to the needy segment of borrowers
New Voucher Verification Queue (New VVQ)
• To cover BGL transactions, all transactions which are performed by
Teller with capability level 7 and above and all transaction directly
posted in CBS by Maker within passing powers.
• Transactions completed at SWO/Teller level remain unverified till
checking in the existing OVVR. To obviate this issue New VVQ is
implemented.
• Despite the facility of online VVR checking system, there have been
numerous cases of perpetration of frauds.
NPA Classification for Revised Kisan Credit Card Scheme (RKCC) is modified
• In the wake of observations that branches input repayment dates in
excess resulting in the KCC accounts remaining in ‘Standard’ asset
category beyond 36 months.
• To rationalize the approach for tracking of NPAs to avoid divergence
in RKCC.
• To comply with the RBI instructions on NPA classification
In case of gold loans, DPN is obtained in addition to pledge of ornaments
• In case the loan amount is not recovered fully by the sale of the
ornaments or if the ornaments are turn out to be spurious or stolen.
• Bank can proceed against the borrower based on DPN.
• DPN ensures personal liability of the borrower as per law
Primary and Collateral Security obtained from borrowers should be entered in
CBS.
• Operating staff and Controllers will get ready information and details of
the primary/collateral security available for the advances.
• Enable suitable action in case of dilution in security at the time of
review/renewal/periodical inspection.
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• In case of NPA, the provision can be made correctly as per the RBI
norms for secured and unsecured portions
Frauds to be reported to RBI within 21 days of occurrence.
• Frauds are very serious and effects on the fundamentals of the Banking
and effects reputational image of the Bank.
• RBI, as a regulator stipulated that any fraud at bank’s level should be
reported to them within 21 days, so that corrective actions may be
designed to safeguarding Banking system.
• RBI has also prescribed making full provision in respect of all cases of
frauds for delayed reporting
Work from Home Policy has been introduced in the Bank.
• Now technology has made possible to carry our work with us, wherever we go,
making Work-Life integration which is the future of the workplace.
• Enables requirement of time to align personal and professional aspirations of
employees with that of Bank.
• Progressive measure to enable employees who are not able to attend office.
Bank to implement best industry practices in all areas.
In Recent days, Operational risk has gained importance.
• It is as per Basel guidelines. Due to significant growth in the banking
transaction, there is increase in operational risk e.g., Inadequate/failed internal
processes, people, system etc.
• To strengthen the soundness and stability of system. It is an important
component of risk management system.
• To avoid destruction of our image in market/competitors, and customer eye.
Penalty provision has been introduced in RFIA for false / delayed compliance of
OTMS alerts.
• To discourage branches from submitting false / delayed compliance to OTMS
alerts. To strengthen the Internal control systems.
• To follow RBI Directives.
• Now there is NO CAP for maximum negative marks in false OTMS compliance.
Nominee ‘s signature is not obtained on the nomination form
• Account holder may not be inclined to let the nominee be aware of the fact of
nomination.
• To facilitate smooth change of nomination by the accountholder in future if
he/she so desires.
• Nominee is not a party to the contract for opening of an account, his signature
is need not required.
No Interest is applied on NPA accounts
• NPA account ceases to generate the income for the Bank.
• As per RBI directive on IRAC Norms Interest is to be reckoned on realization
basis not on accrual basis.
• Bank must pay taxes on the artificial profit if interest is applied.
Arrangement letters incorporate the terms and conditions of a loan should be
intimated to a borrower in writing.
• As per Fair Practice Code for Lenders If not intimated to the borrower in writing
and his consent obtained, it will not be maintainable in a court of law.
• The borrower can contest the same and make a complaint to the Banking
Ombudsman. To build fair image, trust, and confidence in the eyes of the
customer.
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• Latest IRAC norms amendments are to be included in the addendum of

arrangement letter.
LTV ratio introduced for Housing Loans, asset Backed Loan , Gold Loans
• To increase the safety margin for the Bank.
• To minimize loss due to defaults and to prevent slippages as per RBI
Guidelines.
• To ensure adequate security and borrower stake/contribution in the activity
How is e-DFS different from traditional CC limit?
• It is a scheme to provide need-based finance to dealers for their purchases
from the Industry Majors (Corporate) backed by a strong web-based platform.
• The e-DFS A/c (Inventory Funding Account) will operate on electronic platform
with no manual intervention of branches
• Managed by SCFU (supply chain finance unit) department.
• The limits will be sanctioned based on the introduction letter/comfort
letter/performance letter provided by the Industry Major for the dealer.
• Risk mitigating product as against diversion of funds. Funds remitted to only
Industry Majors against inventory.
Staff accounts should be scrutinized by the Branch Manager periodically.
• To ensure that the credits in staff account are not disproportionate to the known
source of income.
• To prevent frauds and malpractices. It is an effective preventive vigilance tool.
• With a view to ensure that such accounts are conducted properly and that no
transactions of an unusual nature (involving large amounts disproportionate to
known sources of their Income) are being routed through these accounts.
Revival letters are dispensed with for standard term loan accounts.
• Obtention of revival letters and balance confirmation letters consume a lot of
resources. The limitation period of three years in such loans starts from the date
of default of installment or call up of advance.
• Obtention of revival letters in case of regular term loans is therefore redundant.
Productive time will be utilized in Marketing of product and in recovery of sticky
units.
Safe Deposit Receipt pertaining to duplicate keys of a branch is not kept in the
branch Strong Room.
• In case of urgent need & loss of keys of the branch Strong Room, it would be
easier to present Safe Deposit Receipt to the other branch for taking delivery
of duplicate keys
Payment of TDRs in cash over Rs.20,000/- is not made.
• It has been instructed by IT Department under Sec.269 (T) of IT Act. To curb
illegal or benami transactions in cash.
• It is a measure by the Government to make such transactions flow through
banking channels, so that it is easier to trace any violations.
Loans against the security of shares/MF in Demat form can be given up to Rs.20
lacs per individual, whereas if they are in physical form, the maximum amount
is Rs.10 lacs only.
• Demat shares are better security for the bank as there is no risk of forged
shares.
• User friendly to operating staff, as the problem in physical handling is reduced.
• It is easier to mark a lien in favor of the bank through Specified Securities
Finance Branch Mumbai (Nodal Branch)
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Bank formulates Loan Policy.

• To provide a broad framework for management of the loan portfolio of the Bank with
emphasis on creating products and services as well as maintaining asset quality.
• To make the systems and controls effective.
• To exercise commercial prudence and ethical business practices
Contactless Lending Platform (CLP) is for Home Loan to Individuals (Term Loan)
launched.
• An initiative aimed at prudential and clean lending with better customer service,
enhanced credit availability etc
• As a part of EASE (Enhanced Access and Service Excellence) initiative under
Reform Agenda for Public Sector Banks (PSBs) by GoI.
• To enable the customer to access In-principle sanction of Home Loan from the
preferred Bank without visiting the branch by accessing the digital platform leveraging
on technology and analytics
Role Based Certifications have been made mandatory for all employees
• Capacity building measure with a focus on improvement in job knowledge of the
employees to achieve enhanced productivity and organizational performance
• To provide experiential learning and improving the employees’ functioning in
respective assignments.
• In line with the RBI mandate and to ensure better appreciation of regulatory and
compliance issues
Current Accounts by our borrowers with other Non-Lender Banks should be
closed.
• To avoid diversion of funds and stress in the borrowal accounts.
• A measure for further strengthening monitoring and credit discipline.
Online Application of Registers (e-Register) introduced
• Green initiative taken as a part of rationalization of existing manual registers
• To ensure the invariable updation of registers to avoid RFIA irregularities.
• To strengthen the Maker Checker concept in updating the data and making MIS
available for branches/Controllers
Currency Chest Strong Room Frisking of person entering Strong Room.
• A preventive vigilance measure to avoid frauds or theft in Currency Chest
• To implement RBI Directives
• To avoid Instances of RBI imposing penalty due to non-frisking of person(s) entering
the strong room
SBI Green Car Loan (Electric Vehicle) Scheme is introduced
• Our Bank being a responsible Corporate Citizen, this is an initiative to promote Eco
Friendly environment
• To tap the new business opportunities in electric vehicle market.
• As a sustainability initiative by the Bank
Investment credit is gaining importance in Agriculture
• As it induces technological upgradation resulting in increased production, productivity
and incremental income to farmers and entrepreneurs.
• As it leads to capital formation through asset creation and contributes significantly to
banks profit.
• Aims to rejuvenate poor Indian farmers who usually becomes prey of local money
lenders
Contactless Lending Platform (CLP) is launched for SME Loans.
• To make the process of sanctioning loans easier to MSME customers using
technology and data analytics.
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• ‘Low risk proposition as the information is verified and validated from GST, Income
Tax site, CIBIL and Bank Account Statement in order to arrive at the inprinciple
approval.
• As the data is validated and pre-fetched from GST site, Income tax site, staff
accountability will not be carried out to that extent.
• Assessment of loan is automated. Its an EASE reform initiative.
Forensic Audit is conducted
• To ascertain whether a fraud has taken place or not.
• To examine the financial statements/information of borrower unit for use as an
evidence in court.
• To cover the whole gamut of auditee unit’s functioning including transactions in
liabilities, advances and investments
“SBI Exclusif” concept is introduced.
• To retain as also acquire the premium customer segment by offering a complete
range of financial products and services along with investment advisory services,
which are technology driven, contemporary & comprehensive.
• To provide total financial solution to HNI / High-end customers through specialized &
dedicated e-Wealth centres / Wealth- Hubs located in Metros/Urban centres.
• It is a Wealth Management initiative to target the upwardly mobile and elite customers
Onboarding Customers risk categorization is to be done based on the
assessment and risk perception of the Reporting Entity.
• To identify, assess and understand the Money Laundering/Terrorist Finance Risks
associated with the customers.
• As per FATF guidelines on Risk Based approach to Combating Money Laundering
and Terrorist Financing
• As per RBI’s master directions on KYC
Analytics based Outlier Model is deployed in Audit system.
• To improve on the current process of identification of branches for audit, which is
based on static, point in time parameters.
• To envision continuous monitoring of controls at a branch, based on data obtained
from the source systems, system driven analysis of the meta data, assigning outlier
audit scores to each branch based on defined scoring logic, prioritization of such
branches for audit, which exhibit less controls (indicated by a higher outlier audit score)
relative to a set of homogenous branches or other branches in the audit universe.
Realty Gold Loan is introduced.
• Looking at the market potential and demand for a new competitive and customized
Gold Loan
• To tap the Gold Loan potential among the Housing Loan customers to meet out the
margin requirements, which can be shown in IT deductions too.
Balance in the liberalized KYC accounts at any point of time should not exceed
Rs. 50000/-
➢ To prevent the account being used for money laundering purposes by unscrupulous
persons ➢ To curb unaccounted money being put through the account.
➢ To enable the common man with low income to avail banking facilities
Bank prefers to give loan to limited liability company than partnership firm.
➢ Under Sec 77 of the Companies Act, 2013, the charge (hypothecation, mortgage
etc.) created by the company can be registered with the Registrar of the Companies,
no such facility available in case of partnership firm
➢ Bank’s right is protected as first charge over the assets.
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➢ Company is a legal entity with perpetual existence, whereas death of a partner etc.,
will dissolve the partnership
Why duplicate keys must be kept in nearby branch?
➢ To ensure the availability of keys and withdrawal of keys in the event of the original
keys being misplaced or lost
➢ To ensure the continuity of the branch business and to provide customer service
without any interruption.
Crossed cheques are not to be paid over the counter.
➢ Crossing is a direction to the paying banker to credit the proceeds to the account of
the beneficiary
➢ It will not be a payment in due course
➢ The paying banker will not get the protection under Sec 126 of NI act.
Insurance of stocks pledged/hypothecated to the bank must be done in the joint
names of the borrower and the bank.
➢ Bank has insurable interest in the goods as it is a creditor
➢ It will enable the Bank to receive the insurance claim in the event of any untoward
happenings causing damage to the goods
➢ This will enable the insurance company not to settle the claim with the borrower
ignoring our right
Review of standard account has been introduced by the bank.
➢ To satisfy that the unit’s performance is as per the projections made at the time of
sanction of advances
➢ To satisfy that the conduct of account is satisfactory and there is no adverse
features in the conduct of account
➢ To identify early warning signals and to take appropriate corrective measures for
smooth conduct of the account
Expired BG should be reversed
➢ It will show inflated liability in our books if it is not reversed
➢ Bank must provide for capital adequacy for guarantees also
➢ To avoid the loss in fee income and customer dissatisfaction
Bank is charging depreciation on its fixed assets
➢ The amount of depreciation is charged to profit and loss account as a notional
expense
➢ To arrive at the correct amount of profit/loss incurred
➢ Depreciation is eligible for Tax deduction
Stock audit should be conducted for large advances
➢ To ensure the correctness of the quality/quantity, value declared in the stock
statement
➢ To ensure that there are no obsolete /returned stocks with the unit
➢ To ensure that the stocks have been insured for full market value and the policies
are current
➢ To ensure that any adverse features are rectified early to prevent the account
becoming irregular/NPA
Firms opening current account must give a declaration that they are not
enjoying any credit facility with any bank.
➢ RBI advised banks to scrupulously ensure that their branches do not open current
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accounts of entities which enjoy credit facilities (FB or NFB) from the banking system
without specifically obtaining a NOC from the lending bank.
➢ To comply with the RBI instruction and to avoid penalty
➢ Banks should verify from the CRILC database whether the customer is availing of
credit facility from another bank.
➢ This restriction has been introduced to prevent the borrowers of banks from routing
the financial transactions in the current account instead of their loan accounts.
Assignment of the policy is registered with LIC.
➢ In terms of Sec 3 of Transfer of Property Act, an assignment of an actionable claim
should be in writing, also the notice of assignment should be given to the debtor. Only
then the Assignment can be enforced against the debtor.
➢ The benefit under an LIC Policy is an actionable claim and hence notice should be
given to LIC for registration.
Working capital limit should be renewed annually.
➢ To know the health of the unit, desirability of continuing the advance, utilization of
the limit, conduct of account etc.
➢ To reduce/enhance the limit depending upon the projected sales/operations.
➢ To review the security available and to protect Bank’s exposure
➢ If not renewed within 180 days from the date of renewal the account must be
classified as NPA
Scoring model has been introduced in all Personal Segment Loans.
➢ Scoring model will enable the bank to fix suitable interest rate based on the score
earned by the borrower.
➢ Bank will be able to assess the credit risk of the borrower and take a decision either
to grant or reject the loan.
The RTI Query Management and Tracking system has been introduced by the
Bank.
➢ This will enable the Bank to know the type of questions being asked under RTI Act
and ensure that the questions have been properly answered and no adverse criticism
is made against the Bank.
➢ Also to ensure that the information which are exempt from disclosure as per sec. 8
of the Act are not given.
➢ This will also avoid payment of penalty by the Bank for Non/Delayed submission of
information.
Right of general lien cannot be exercised on securities entrusted to bank for
safe custody.
➢ In terms of the Indian Contract Act, 1872 items entrusted for specific purpose are
not subject to the bank’s lien.
➢ Safe custody items are entrusted to the bank for the specific purpose of safe
keeping and not in the capacity of a ‘Creditor’.
EM register is not signed by the borrower while creating equitable mortgage.
➢ If any instrument signed by the mortgagor while he creates an equitable mortgage,
it may be contended later that the mortgage is registered mortgage.
➢ It is inadmissible as evidence, as no stamp duty has paid on it and that the
document has not been registered with Registrar of Assurances.
CASA deposits are given importance / Project Kuber has been introduced
➢ CASA provides stable deposit for the bank which is useful for ALM(Asset Liability
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Management)
➢ It is a source of low-cost deposit.
➢ If these deposits increase it will have the benefit of wider spread which leads to
higher Net Interest Margin and higher profit for the bank, high business per employee
ratio.
Charge created by a joint stock company is registered with the registrar of
companies.
➢ Charge created is required to be registered within 30 days of its creation u/s 125 of
Companies Act.
➢ Sec. 77 of Companies Act requires all types of charges to be registered.
➢ It acts as a notice to rest of the world in respect of the charge on assets
➢ To get priority amongst secured creditors in the event of the company going into
liquidation.
In case of illiterate borrowers/guarantors the thumb impression should not be
attested on the documents.
➢ Any attestation on the document attracts ad-valorem stamp duty.
➢ To do away with a separate letter as an annexure to the documents signed by two
witnesses is obtained to prove that the contents of the documents were explained in a
language known to the borrower/guarantor
In respect of Equitable Mortgage form ‘A’ is obtained after the date of creation
of Equitable Mortgage.
➢ Anything reduced to writing as to the creation of mortgage on the date of creation
tantamount to creation of Registered Equitable mortgage.
Bank has declared ‘whistle Blower Policy’.
➢ As a proactive measure to mitigate operational, legal and reputational risk of the
Bank and with a view to enhance Corporate Governance standards.
➢ The clause 49 of SEBI Listing Agreement mandates to establish a mechanism
called “Whistle Blower Policy” for employees to report to the management instances
of unethical behaviours, actual or suspected, fraud or violation of the Company’s code
of conduct or ethics policy.
➢ The Government of India had also tabled the Public Interest Disclosure and
Protection to Persons making the Disclosures Bill, 2010 popularly known as “Whistle
Blower Bill” in the Lok Sabha.
Even though a contract with a minor is void, the Bank opens an SB account in
the name of a minor.
➢ To enable minors to get their ‘Necessaries’ in life as well as to encourage thrift in
them; the ceiling of the deposits is comparatively low.
➢ The bank has taken a calculated commercial decision.
➢ Also, withdrawal is restricted to the minor only against his receipt and hence receipt
of the moneys cannot be denied by him.
The cheque drawn by the director of a company is paid even after his death; but
a cheque drawn by a partner of a partnership firm is not paid after his death.
➢ A company is separate legal entity. It is an artificial person which has perpetual
existence, limited liability and a common seal. So a cheque issued by the company
has to be paid even after the death of the directors.
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➢ Partnership is dissolved on the death of a partner. Clayton’s rule will apply.

In case of Savings Bank account in the name of minor, the minor has to
complete certain formalities on attainment of his majority.
➢ To ratify the transactions done during the period of minority.
➢ In the absence of completion of these formalities, the Core Banking Solution does
not permit debits in the account
RBI has initiated PCA (Prompt Corrective Action) against a few banks.
➢ PCA measures are taken under the Supervisory Review as prescribed in Basel II.
➢ PCA is initiated by RBI against a bank when a bank’s CRAR ratio is impaired or
when Net NPA ratio worsens or when ROA is negative for 2 years.
➢ The objective is to strengthen the working/financials of the banks and maintain
system integrity.
CRILC has been set up by RBI.
➢ RBI captures system-wide exposure of individuals and entities having exposure
(FB+NFB) of more than Rs. 5 crores.
➢ This data will be used by RBI to create a Central Repository of Large Credit across
banks.
➢ The data base would be useful for RBI for taking macro decisions and for research.
➢ To monitor the stress assets also.
Payment banks have been set up.
➢ As per the recommendations of the Nachiket Mor Committee
➢ Can start with a minimum capital of Rs. 100 Cr.
➢ These banks are set up to offer small savings account and remittance services to
low- income households, migrant labourers, small businesses, and other entities in the
unorganized sector. They can accept deposit upto Rs. 1 lakh.
A Demand Draft payable to bearer cannot be issued by Bank.
➢ Sec 31 of the RBI Act prohibits issue of a bearer draft.
➢ It is punishable under Sec 58(b) of RBI Act.
➢ A bearer draft, if issued, will become virtually a currency note.
The payment of a Bank draft/IOI cannot be stopped.
➢ Once a draft issued by the Bank is delivered to the payee; it becomes a Trustee for
the Payee for the draft amount.
➢ The Bank draft carries a promise of the Bank that it would pay ‘Payee’ or ‘Order’ a
sum of money for value received and third parties might have got title to the draft by
negotiation.
➢ The Bank has already received the value for the draft.
RBI changes the security features of Bank Notes periodically.
➢ To prevent the threat of counterfeiting by criminal elements, both within and outside
the country
➢ To ensure the safety and good health of the financial economy of the country
➢ To prevent the loop-holes exploited by the criminal elements by changing the
design, printing etc. and making counterfeiting impossible
➢ To make the notes user-friendly eg. For visually challenged etc.
RBI has limited the liability of customers in unauthorized electronic banking
transactions.
➢ Customers’ liability will be ‘zero’ if there is contributory fraud/negligence/deficiency
534
on the part of the bank.

➢ In case of third party breach where the deficiency lies neither with the bank nor with
the customer, the customer is not responsible if he advises the bank within T+3 days
of receiving the communication from the bank regarding the unauthorized
transactions.
➢ As per RBI’s instructions, information technology used by banks are vastly complex
and the relative unfamiliarity of ordinary individuals in this regard.
➢ CLIC(customer liability Identification committee) formed at LHO level now for
resolution.
Revalidation of expired draft has been discontinued.
➢ GITC has adviced that CCPC will not be able to pay any stale instrument,
revalidated instrument wef 01.09.2017.
➢ A fresh instrument must be issued by cancelling the original draft.
➢ Reconciliation work will be simple.
RBI has made PAN and Aadhaar compulsory for opening a bank account.
➢ To ensure the transfer of direct benefits like LPG subsidy and obtaining the life
certificates of the pensioners through digital mode
➢ To weed out the fake beneficiaries and intermediaries, duplicate PANs and plug tax
leakages ➢ To pin down money laundering via benami transactions.
In Doctor Plus Scheme, the Point of Sale (PoS) Machine should be made
mandatory to the Borrowers
➢ In order to capture the Cash Flows, in respect of Card Transactions, the PoS
Machine made mandatory to the borrowers.
➢ Cash flow generated out of the equipment financed under the product should
mandatorily be routed through a Bank Account maintained at the branch.
➢ Opening of Current Account with other Banks shall be restricted
SBI has launched RINN SAMADHAN Scheme:
➢ As small value accounts constitute a substantial portion of NPAs, AUCA &
Written Off Accounts, the bank has launched RINN SAMADHAN Scheme.
➢ In this connection, the Bank has introduced a Special One Time Settlement
(OTS) Scheme for the settlement of NPA & AUCA, Written Off Accounts with
the Outstanding up to Rs.20 Lakhs valid upto 31.03.2023.
The Validity Period of a Sanction of a Home Loan has been reduced from 6
Months to 3 Months.
➢ A Shorter Validity Period will create a sense of urgency among the borrowers to
avail the Disbursement of Loan.
➢ This will also discourage such customers who use our Sanction Letters to negotiate
with other banks/HFCs for higher loan amount / Better Pricing.
➢ The Lower Validity Period will also reduce the chances of Multiple Borrowings
during the Intervening Period
The cap on addition of Beneficiaries has been relaxed for Retail Internet Banking
and CINB-Saral Customers.
➢ To enhance the Customer Convenience, Satisfaction and to meet the present
requirement of Customers for sending Online Remittance to Multiple Beneficiaries, in
a day, the existing cap on Beneficiary Registration per day has been relaxed.
➢ And also to facilitate ease of small tickets funds transfer without increasing overall
monetary limit of Rs.1 Lakh which is applicable for first 4 days of activation.
Changing / Resetting of Forgotten Profile Password in Retail Internet Banking
535
(RINB), Option to Change Profile Password Using Debit Card Details has been
introduced.
➢ As per the feedback received from customers, visiting Branch, or remembering the
hint question and answer thereto are causing inconvenience to customers
➢ To enhance the Customer convenience and customer satisfaction.
Overdraft in Salary Package Accounts has been modified recently wherein silver
variant customers are excluded.
➢ With the objective of boosting business, improving the asset quality, enhancing
reach to the product and convenience to the customers
➢ To exclude silver variant of the Salary Package customer to maintain healthy
portfolio
➢ To include additional channel through YONO and Gold variant customers for
overdraft will increase reach, convenience, and business growth in this portfolio.
New functionality of ‘Security Register’ in the CBS has been introduced.
➢ In order to have a “one point view” of the security(ies) charged/ available to the
Bank, a functionality of “Security Register / COV Security Details” is now made
available in CBS for monitoring and apportionment of securities amongst the various
credit facilities sanctioned to a borrower.
➢ The module is based on the Customer Identification Number (CIF) of the borrower
and provision for viewing as well as generation of a user-friendly report is also
available
“SME GOLD LOAN” has been introduced.
➢ To meet mismatches for MSMEs, especially for smaller units
➢ To tap the available adequate business opportunities and zero risk weight
➢ This would be in addition to existing finance by way of Working Capital/ Term Loan
where the customer is unable to offer other tangible collateral security or the
requirements are short term in nature
‘Perfection of Security’ is to be mandatorily updated in CBS Screen no. 063823
/ 063822
➢ Complying with regulatory guidelines and development of centralized mechanism
for monitoring of securities as a post sanction due diligence measure
YONO Business – Integrated Platform launched.

➢ In line with YONO USP, i.e., you only need one, to cater to business requirements
of corporate customers
➢ All the 5 applications (CINB, CMP, SCF, eTrade and eForex) have been integrated
for Single Sign On (SSO) login instead of using multiple URLs and for 3 applications
(CINB, eTrade and eForex), uniform on-boarding journey, along with an omnibus
document, has been introduced.
Bank has issued a Standard Operating Procedure (SOP) for Title Investigation
Report (TIR)
➢ To strengthen the process for seeking TIR and to update the Operating Units with
latest instructions
➢ To provide a SOP to handle Title Deeds to ensure that mortgages created are valid
and enforceable.
➢ To provide mitigating measures at one place against mortgage frauds in the context
of increasing number of fraud cases in respect of mortgages.
Lien cannot be exercised by a Bank on the securities deposited by a borrower
536
for safe custody.

➢ Right of lien is available to the Banker under the creditor-debtor relationship. In
case of safe custody, the relationship is that of Bailee-Bailor.
➢ Section 171 of the Indian Contract Act provides the right of General lien to the
banker, which states that security taken in one account can be utilized to
recover the dues of the borrower in another account.
➢ But, in case of safe custody, banker is required to take care of the goods bailed
to the bank like an owner, failing which bank will be negligent and legally liable.
➢ However, bank can charge from the customer for this facility but cannot
exercise any lien.
ATM cum Debit card will not be issued in Max gain Account.
➢ Max gain is housing loan as an overdraft facility. Debit to this account only once
at the time of disbursement.
➢ If ATM card is issued there are chances of debit transactions by the borrower.
We should not grant advance against TDR's issued by other Banks.
➢ Other Banks may refuse to note lien in their books in our favour.
➢ Moreover, issuing Bank has a first and paramount Lien on it and may exercise
the right of setoff also.
Why LTV Ratio for P-Segment loans.

➢ To increase safety margin for the bank.
➢ To minimize loss due to default and prevent slippages due to security erosion.
➢ It is a check for monitoring of Primary /collateral security erosion.
Assured Car Loan introduced.
➢ Assured Car Loan is available for customers who are not able to provide income
proof but having fixed deposits with our Bank.
➢ In view of marking of lien on FDs, there will be no incidence of account turning
into NPA.
Payment of a cheque outside business hours is not made to any person other
than the drawer.
➢ Under Sec.85 of the NI Act, it does not constitute a payment in due course.
➢ In the event of death, bankruptcy, lunacy of the drawer or if payment is
countermanded by him, the bank will not be entitled to debit his account.
Equitable Mortgages must be registered with CERSAI.
➢ To create a common registry wherein details of all mortgages by deposit of title
deeds and other data regarding secured transaction.
➢ The prospective lenders can verify whether any charge has been created on
the property already.
➢ Registration in CERSAI immediately after EM creation is mandatory to protect
the first charge of us.
RBI has allowed banks to purchase/sell NPAs.
➢ To create a secondary market for dealing in NPAs by banks and FIs to generate
cash flow for recycling them.
➢ To cleanse the balance sheet of banks.
PAN card of student / parent is mandatory for all Educational Loans.
➢ To mitigate the difficulties faced by operating staff in contacting the borrower
after completion of studies and rising NPA in Education Loans.
➢ To facilitate follow up and to track the borrower easily.
A non-profit making association can’t be a partnership firm.
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➢ Sec.4 of Indian Partnership Act defines as the relationship between persons,

who have agreed to share the profits of a business carried on by all or any one
of them acting for all. Profit is the essential purpose of a partnership.
➢ Hence, a nonprofit making association can’t be a partnership firm.
SBI encourages Merchant Acquiring Business-POS.
➢ The facility of making payments through Cards encourages your customers to
spend more as they are not constrained by cash on hand, resulting in Customer
Stickiness and Increased Sales volume.
➢ By accepting payment through cards, sale proceeds are credited electronically
to merchant account as per the agreed transaction cycle, thereby providing
Better Cash Management and Speedy Payment.
➢ Lower volumes of cash reduce vulnerability to theft and minimize counterfeit
notes.
When an LIC policy is reassigned after the advance has been repaid, the policy
holder is advised to do the fresh assignment or nomination.
➢ As per Section 38 of Insurance Act, a nomination made before any assignment
is cancelled in favor of nominee by an assignment of the policy.
➢ Hence customer is advised to make a fresh nomination.
Nominee signature is not obtained by the Bank on the nomination form.
➢ Nomination can be changed by the depositors during the currency of the
deposits.
➢ To meet the confidentiality requirement from the depositors.
➢ Nominee is not a party to the contract for opening of an account, his signature
is need not required.
Moratorium period is given for repayment of Term Loans.
➢ Unit requires adequate time for acquisition of land, construction of premises,
erection of machinery and trial production.
➢ It will work above the Break-Even Level only when it achieves commercial
production.
➢ Unit requires generally 12 to 24 months for achieving commercial level of
operations. At this level only, it can generate income for the repayment of loans.
“GARIMA”, the policy on sexual harassment of women at workplace
(Prevention, Prohibition & Redressal) implemented in SBI
➢ As a measure to provide a safe and conducive work environment for women
employees to work without fear, prejudice, gender bias and sexual
harassment
➢ To provide employees with a platform for impartial grievance redressal against
➢ sexual harassment.
➢ To provide safeguards against false or malicious charges.
➢ As per the regulations of Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 ("Sexual
Harassment Act")
A Common application form for Settlement of Claims in Deceased Constituents
accounts introduced across Public Sector Banks.
• Under EASE(Enhanced Access and Service Excellence) Reforms on ‘Banking for
Customer Convenience’ by Ministry of Finance, GoI.
• Introduced with suitable guidelines and instructions for the applicants guiding them
in filling the information properly.
• To streamline the procedure and set a uniform practice among all public sector
banks.
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Pradhan Mantri Fasal Bhima Yojana (PMFBY) launched

• With a view to providing financial support to farmers suffering crop loss /damage
arising out of unforeseen events and to stabilizing the income of farmers to ensure
their continuance in farming.
• Introduced in place of existing scheme of National Agricultural Insurance Scheme
(NAIS) and National Crop Insurance Programme (NCIP)
• A Government of India initiative
Contactless Lending Platform (CLP) is for Home Loan to Individuals (Term Loan)
launched.
• An initiative aimed at prudential and clean lending with better customer service,
enhanced credit availability etc
• As a part of EASE (Enhanced Access and Service Excellence) initiative under
Reform Agenda for Public Sector Banks (PSBs) by GoI.
• To enable the customer to access In-principle sanction of Home Loan from the
preferred Bank without visiting the branch by accessing the digital platform
leveraging on technology and analytics.
DDE (Digital Document Execution) facility enabled RTXC product is introduced
• Digital document execution at NeSL platform and storing in e-DMS
• For DDE cases, the documents (viz. arrangement letter and loan agreement
etc.) will be e-signed through Aadhar OTP based signature digitally and stored
in eDMS
• Staff accountability on Pre-Sanction Process is not required.
• In view of the legal complications in pre-approved loans, DDE is being
executed.
Corporate Cheque Payable at Par (CCPAP) facility were allowed to print/ issue
cheques with facsimile signature up-to a limit of Rs. 10.00 lakhs per instrument.
• Most of the Housing Finance Companies (HFC) require this facility for their high
value clients, as cheque details are mandatory to be incorporated in the
agreement executed between HFCs and borrower.
• Considering business needs and to align our product with that offered by other
Banks, the Appropriate Authority has approved
NEW LOAN PRODUCT “FINANCE TO BIO-FUEL PROJECTS launched
• As per latest RBI’s guidelines on “Priority Sector Lending (PSL)”, Loans for
construction of oil extraction / processing units for production of bio1fuels, their
storage and distribution infrastructure along with loans to entrepreneurs for
setting up Compressed Biogas (CBG) plants are eligible for classification under
PSL.
• RBI directive.
SAFE DEPOSIT LOCKERS/ SAFE CUSTODY ARTICLES FACILITY --REVISED
GUIDELINES released
• Reserve Bank of India issued revised instructions with respect to strengthening
of operational processes, security set up, risk management, settlement of
claims, outlining liability of Bank and compensation therefor in respect of Safe
Deposit Locker / Safe Custody Article facilities.
• One of the EASE initiatives.
Bank has reduced the Monthly Average Balance for regular Current Account
from
Rs. 10,000 to Rs. 5000.
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• To increase our current account market share which in turn would boost our
CASA ratio.
• To tap small and medium enterprises who are currently not banking with us.
• To ensure that MAB in not a factor for declining CA market share.
Existing Business continuity plan has been renamed as BC & OR Plan.
• To incorporate the broad principles of operational resilience issued by BCBS
(Basel Committee on Banking Supervision) during March 2021.
• To ensure that BC & OR Plan(Business Continuity & Operational Resilience)
stays relevant and executable with the changing banking scenario.
Bank has formulated Compensation Policy 2021.
• To compensate the customers for the loss or in convenience due to deficiency
in services on the part of the Bank or any act of omission or commission directly
attributable to the Bank and covers all branches officer of the Bank in India.
Bank as changes the process flow of OTMS from branch to LHO.
• To ensure meaningful security of OTMS alerts in view of high value frauds
unearthed and to avert frauds / minimize loss.
• To minimize false compliance thereby avoiding penalties in RFIA score of the
branches.
Change of ATM password to me made mandatory in the ATM after 30 days
/ change of incumbency.
• It is thought that the periodicity of changing the password may be reduced to
have an effective control over the functioning of the cash replenishment system
in ATMs
An Electronic waste (e-waste) management policy has been formulated by the
Bank.
• To ensure proper handling of e-waste with a view to protecting the
environment, reducing pollution by toxic gases / green- house emissions and
other non-biodegradable substances caused by e-waste disposal.
• Falling in line with instructions of Ministry of Environment and Forests,
Government of India (GOI)
The bank has relaxed the collateral norms for KCC review / Renewal.
To facilitate Timely review/renewal of KCC entitle farmers to be eligible for 2%
interest subvention and 3% additional interest subvention.
OCAS has been withdrawn
To achieve the objective of customer relationship in true sense and to avoid
duplication of work, it is important that the leads are captured and further
processed in one application i.e. CRM only
Bank has launched customer segmentation initiative
Customer Segmentation initiative is launched to differentiate customers based on
their value of connection and offer them services according to their segment.
This will also help the Bank to retain as well as acquire high value non salaried
customers who later can be migrated to our ‘SBI Exclusif’ Wealth platform
Administrative approval for issue of BG above 18 months to 120 months has
been modified by bank
Introduction of two-level authority structures for Period Angle Clearance and
Monthly Report (by listing) for control, for ease of doing business.
Dispensing with No Due certificate (NDC) for agriculture lending.
540
• To ensure hassle free credit to all borrowers, in rural and semi-urban areas
and keeping in view the technological developments and various
alternatives available with banks to avoid multiple financing.
• RBI directive.
The name of the purchaser shall be incorporated on the face of the demand
draft, pay order, bankers’ cheque, etc., by the issuing bank.
• As per RBI Directive
• To address the concerns arising out of the anonymity provided by payments
through demand drafts and its possible misuse for money laundering
No Advance to be sanctioned by a Bank against its own shares
• As per Sec 20 of Banking Regulation Act 1949.
• Prohibited under Sec 34 (1) (B) of SBI Act 1955
Verification of possession details to be included in Annexure F of TIR.
To ensure proper recording of identification and physical verification of Primary/
Collateral Security.
Bank has advised operating functionaries on entering correct depreciated value
of Vehicle in CBS
• Directive of Financial Reporting & Taxation Department (GoI).
• SARG has hence issued clarification on methodology in respect of feeding
correct security value in CBS/System for capturing correct provisioning.
Observance of “Jokhim Jagrukta Diwas / Risk Awareness Day”
To create awareness about importance of Risk Management in the Bank which is to
be observed every year on 1st September.
SIM Binding has been introduced in YONO SBI App:
• It has been introduced vide RBI directive on mobile payment security control.
• It is a measure for enhanced security feature where along with device (mobile
phone) binding, SIM binding will also be done for validating during log in.
• We have total 5 bindings-IMEI (device), SIM, User Id, M pin, RMN (regd mobile
number) in YONO App.
Bank has formulated Internal Ombudsman Scheme.
➢ For enabling and ensuring a proper and speedy resolution of
complaints of bank customers at the bank level by an independent
open level authority
within the bank.
➢ RBI Directive..
Corporate Cheque Payable at Par (CCPAP) facility were allowed to print/ issue
cheques with facsimile signature up-to a limit of Rs. 10.00 lakhs per instrument.
• Most of the Housing Finance Companies (HFC) require this facility for their high
value clients, as cheque details are mandatory to be incorporated in the
agreement executed between HFCs and borrower.
• Considering business needs and to align our product with that offered by other
Banks, the Appropriate Authority has approved
New Loan Product, “Surya Shakthi – Solar Finance” introduced by the Bank
• To augment potential under the segment as GOI as set ambitious target to
establish Renewable Energy capacity of 450 GW
• Huge potential is available to tap roof-top solar projects.
SBI Default Borrower Registry (SBIDBR) https://sbidbr.sbi:9443/ introduced.
• SBIDBR has been introduced as a substitute to iProbe
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• The application is under digital initiative of the Bank to ascertain if the key
person mentioned in new loan application is associated with any existing
bad loans at any of our branches of SBI.
New Product “SBI Rishtey” introduced.
• To facilitate “family banking concept” in marketing and opening of Salary
package accounts with extended benefits.
• To ease out competition in attracting Salary package customers.
Rollout of NeSL Digital Documentation Execution facility at DDE enabled
centres
• DDE facility offered by NeSL involves real time execution of loan
documents through e-signature and e-stamping.
• The process is also targeted to retain Bank’s “numero-uno” position in

driving digital initiatives and the Bank’s digital offerings which will, in turn,
result in enhanced Brand equity.
Introduction of New Current Account product “Shubharambh Start Up” Current
Account
• Start-up India is a flagship initiative of Government of India and promote
Startup entrepreneurship and enhance our current account base,
appropriate authority has approved the new current account variant.
CVE-BU / YONO FSS – Availability of SBI Life products on YONO Branch portal
• To help walk-in Customers to purchase SBI Life products in Branches, a
digitized journey is made available on YONO Branch Portal for SBI Life
products through Maker and
REHBU – New digital application RAAS/RLMS introduced
• Under digital initiative of the bank
• To improve TAT on REH advances including P-LAP in an end to end journey
from sourcing to processing / disbursement.
Maxgain facility will be given only for Ready to Move-in Properties / Re-Sale
Properties – where the full limit can be disbursed, in one tranche
• CBS is unable to track properly partially disbursed Maxgain Accounts for
IRAC classification. Any parameter level change in CBS is not possible
exclusively for Maxgain Accounts, as these will be applicable for CC / OD
Accounts of SME, PER segments (drawing power remains higher by the
undisbursed portion than the outstanding as DP is reduced every month by
principal portion of EMI.As a result, even if customer does not pay EMI, the
account is not tracked for NPA, as outstanding remains below DP)
REHBU- maxgain facility – Stipulation for applicants to maintain deposit
account with us in lieu of existing instruction
• Instead of stipulating minimum balance of Rs. 5000/- in SB / CA, our
endeavour will be to shift the Salary Account from other Bank if not already
maintained with us.
No Appeal is allowed under Lok Adalat decree
• Lok Adalat is a consent decree and hence there is no provision / grounds
for the defendant / borrower for further appeal as the terms have already
been accepted by the borrower.
Disincentive for false compliance / non-compliance / undue delay in furnishing
compliance introduced
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• To deal with instances of false compliance / delayed compliance to audit,

security review findings as non-compliance attracts strictures from
Regulators and even monetary penalties for persisting violations.
• Undue delay may also be constituted as non-compliance
Name screening with Internal Negative List before sanction of loan is to be done
• As per RBI Master direction – KYC Direction, 2016
• Enhanced Due Diligence before granting credit facilities to entities
appearing in the Bank’s Internal Negative List
SIM Binding has been introduced in YONO SBI App:
• It is has been introduced further to RBI directive on mobile payment security

control.
• It is a measure for enhanced security feature where along with device (mobile
phone) binding, SIM binding will also be done for validating during log in.
Implementation of LEI Code in Large Value NEFT / RTGS transactions of Rs.
50.00 Cr. and above undertaken by entities
• As per RBI directive / notification dt. 05.01.2021
• The purpose of LEI code is to identify legal entities on globally accessible
database
S-Core – Two-way closure mechanism is introduced
• To have an efficient supervisory control and to evaluate the performance of
the analysts on problem resolution.
Correct due date to be entered in CBS for Term Loans along with mode of
repayment viz. PED, EMI, EOT, Negotiated repayment
• To comply with RBI guidelines
• To arrest SMA 0 as non-service of interest on due date or month end
renders the account as SMA
Roll out of VVM SIO Mobile App for Pre-sanction Survey
• To provide a robust solution to carry out the Site Inspection seamlessly
• For capturing the real time inspection and geo tagging of the property under
inspection
Engaging Business Associates to handle Micro Asset Products in all segments
• Due to shift in the lending ecosystem and to achieve economies of scale,
need for partnerships arises.
• These partners help to fulfil the objective of ensuring greater financial
inclusion, increasing the outreach of banking sector, improve credit delivery
and reducing operational expenses.
Dashboard for monitoring of Single Officer Branches (SOBs) by Controllers at
RBO
• To mitigate control risk associated with Single Officer branches (SOBs), as
these branches call for special attention and hence exclusive monitoring
mechanism has been developed
Very high Current Ratio is not a good sign.

 Very high current ratio is an indicator of in-efficient working capital
management.
 There is a risk of manipulation in quality, quantity, rate of the current assets,
which may result in wrong decision.
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 There is a possibility of hoarding of stocks, accumulation of non moving

stock, long unrealised debts etc.
Documents are to be filled in completely before execution.

 Documents are proof of availment of the loan/advance.
 If documents are not completely filled-in before execution, the borrower
may object the genuinity of the matter filled-in subsequently. He may disagree
to repay the loan on the grounds that he was not aware about all the terms and
conditions of the loan. ➢ It is not a good practice as the procedure will not be
transparent.
Loan for milch animals is disbursed in two phases.

 Loan is released for purchase of milch animal and second instalment is
released after 6 months to ensure that one animal will give milk during dry
period of the other animal for continuous income generation for the
borrower.
 The repayment of loan will be regular.
Under SARFAESI Act 2002, Possession Notice should be published in two news
papers.
➢ As the possession of the property is taken over by the Secured Creditor, it
is a notice to the public as well as to the borrower informing them of the
fact and cautioning them not to deal with the said property
As per the directives of SARFEASI Act.
Promoting Farmers Clubs is beneficial to the Bank.
 Farmer’s club formation is based on the principle “Development through
credit”.
 It enables the farmers to adopt improved practices for their development.
Because of their voluntary participation, the change process will be faster.
 We can as well make use of the Clubs to inculcate proper credit discipline
among the farmers.
Staff accounts should be scrutinised thoroughly by the Branch Manager at
regular intervals. ➢ With a view to ensure that such accounts are conducted properly
and that no transactions of an unusual nature (involving large amounts
disproportionate to known sources of their Income) are being routed through these
accounts. Also to prevent possible frauds.
‘Whistle Blowing’ is given importance.
➢ The growing number of frauds and declining ethical values and
corruption at high levels made it necessary to introduce a system
whereby a check can be had. ➢ It will also boost the morale of the
lower level people in an organisation.
Why Corporate Governance?
 To enhance shareholders value.
 To protect interest of shareholders, customers, employees and society
at large.
 To ensure transparency and integrity in communication and to make
available clear information to all concerned.
544
 To ensure accountability for performance and to achieve excellence at

all levels.
 Kumar Mangalam Birla Committee has given various recommendations
on it.
 To provide corporate leadership.
Why Cross Selling?
 It is selling additional products/ services to an existing as well as new
customers and it fosters brand loyalty.
 It costs a bank five times less to cross sell an existing client than to acquire
a new one.
 Cross Selling helps bank to plan, implement, and maintain better customer
relationship management programmes. Right product at a right time offered
to customer. This builds banks image. It helps bank to increase
miscellaneous income.
Alternate Delivery Channels are the need of the hour.
 Several alternate delivery channels such as ATM, Mobile banking, Internet
banking, etc. will provide customer satisfaction and convenience.
 It will decrease the crowd at the counters and give free time to branch
operative staff to sell and market products.
 It will help to improve market share and quality of business.
 It will help our bank to compete effectively with new forces of the market.
Banks are focusing on CASA Deposits.
➢ CASA deposits are low cost deposits. They are stable and useful for ALM.
Since CASA deposits are obtained from a large number of customers, it
eliminates the shocks of sudden withdrawals. Customer base will increase
which increases cross selling opportunities and revenue to the bank. This
is also a way of financial inclusion.
Bank brands the stamp Àll our stamps cancelled' while returning the cheques.
 This is done to ensure that the Bank does not incur any liability in future
as an agent for collection of the instrument.
 Holder can renegotiate the instrument through the same or even other
Bank.
Pre-sanction inspection is very important.
 To know the exact location of the business.
 To ascertain creditworthiness, local standing and integrity of the applicant.
To examine suitability of location.
Articles kept in safe custody should be examined periodically.
 To prevent any possibility of these articles being damaged by white ants
and dampness etc.
 To discharge our duties as that of bailee as per Section 151 of Indian
Contract Act.
Payment of a Bank draft cannot be stopped by the purchaser.
 While issuing the drafts the Bank receives value well in advance.
 Hence, the bank cannot go back on its own promise to pay the money,
which was received as consideration.
 Once a draft is issued, the Bank becomes trustee of the funds for the
payee.
 The payee might have got the title to the draft by providing some
consideration. Hence payment of draft cannot be countermanded.
Job rotation in the Bank is done periodically.
545
 To avoid frauds arising out of the monopoly of the specific employees

handling specific areas. To drive out monotony. Development of the people
by providing them with an opportunity to handle different types of jobs on a
regular basis. To avoid the effect of indispensability of selfish people. To
ensure that the Bank’s work does not suffer in the absence of anybody.
Password secrecy is observed in Branch.
 Password secrecy protects bank and save us from future loss and misuse
by fraudsters.
 The sensitive information can be used by unscrupulous elements for own
vested interest.
 Fraud committed can cause loss to individual and organization. More than
that it can cause reputation loss for the organization.
Government Business has to be given a lot of importance.
 It contributes to the bottom line directly by means of commission income.
 No need for any outlay of funds/ capital adequacy.
 It gives scope for close rapport with various Govt. Departments. It gives
vital business leads
Note bundles should be periodically turned over in the strong room.
 To avoid notes getting stuck to each other/deteriorate in quality. To obviate
notes getting damaged due to white ants/pests To enable verification at
periodical intervals.
Partial Endorsement is not valid for purpose of Negotiation.
 As per Sec. 56 of NI Act, a person's liability in a contract cannot be
apportioned. Therefore, a partial endorsement will not be valid in law.
Negotiability is not same thing as transferability of Negotiable instrument.
 Negotiability of Negotiable instrument means free transfer of title in favour
of a transferee by the transferor through delivery or endorsement and
delivery. Through negotiation, the transferee gets better title even though
there may be defect in the title of the transferor provided the transferee has
no notice of such defect. In case of negotiability, the transferee gets a title
subject to defects if any, and not free from such defects.
A material altered cheque is not paid without the authentication by the drawer.
 Material alteration of cheque alerts the mandate of the drawer and Banks
can make payment of the cheques drawn by them taking into account the
mandate. In case a cheque with material alteration is paid, it will amount to
payment without caring for the mandate of the drawer. Such payment
cannot be considered a payment in due course and Bank will be held liable
to compensate the drawer in case of loss to him.
Bank do not prepare Draft payable to bearer on demand.
➢ Under the provision of Sec 31 of RBI Act 1934, no person in India, other
than RBI or Central Govt, shall draw, accept, make or issue any Bill of
Exchange, Hundi or Promissory Note for the payment of money payable to
bearer on demand. Although Sec 5 of NI Act does not put any restriction
on the drawer ( bank in case of bank draft ) of a bill of exchange to draw it
as payable on demand to bearer, but Sec 31 of RBI Act has an over-riding
effect.
All partnership firms are not registered with Registrar of firms.
➢ Under provisions of Sec 69 of Indian Partneship Act 1932, it is not
mandatory that a firm should get itself registered with Registrar of Firms,
which has the effect of a public notice. The registered firms however, have
546
certain advantages which the unregistered fims do not have. The non
registered does not make the partnership illegal in any way, though its legal
position is weak compared to the registered firms.
Banks prefer registered partnership firms for the purpose of giving loans.
➢ Under provisions of Sec 69 of Indian Partnership Act 1932, it is not
mandatory that a firm should get itself registered with Registrar of Firms,
which has the effect of a public notice. The registered firm can sue other
parties in its name, on the contracts entered into by it with third parties.
Such provision is not available for unregistered firms this may affect the
recovery of dues from the firm when the firm is unable to recover the dues
from its debtors.
A cheque signed by an expired partner of a firm is not paid while a cheque
signed by an expired director of a company is paid.
➢ A partner in a partnership firm represents the firm as well as himself, being
jointly and severally liable for the dues. With his death, the contract with
the Bank comes to an end. On the other hand, a director represents the
company and is only an agent. Death of an agent though brings end to
agency but not the company. Hence, relationship between company and
bank does not terminate.
When a cheque is crossed to two Banks it is not paid.
➢ A crossed cheque is considered to be direction of the drawer to the paying
bank, but crossing in favour of two banks is not a clear mandate unless it
is stated simultaneously that one Bank is acting on behalf of the other. Sec
127 of NI Act prohibits payments of such cheques. The paying Bank cannot
get protection, if such cheques are paid as mandate is not clear.
Liability of an endorser of a Negotiable Instrument is similar to principal debtor
/ guarantor.
➢ Under Sec 35 of NI Act, an endorser is deemed to have impliedly promised
that on due presentment the instrument will be paid and in case of dishonor,
the holder will be compensated if he receives a notice of dishonor. As a
result, his liability to pay is absolute without any pre-conditions. He is the
party, who is liable on the instrument jointly as well as severally.
BANKS ENTERED INTO INSURANCE, Why ?
1. To diversify the business.
2. To improve non interest income.
3. To provide integrated services to customers
4. To face the competition of others
Bouncing of cheques due to insufficient funds treated as cognizable offence
 To enhance acceptability and creditability of cheque as dependable
instrument, i.e. means of payment settlement. To enhance reliability of
cheque and eliminating chances of frauds, cheating ad otherwise stopping
of cheque on flimsy grounds. The penal clauses act as deterrent because
bouncing of cheque for want of sufficient balance in the relevant account is
made a cognizable offence under Indian Penal Code.
Passwords on the computer should be kept secret
 Password enables the official to access the accounts of customers, office
account etc. If the password is known to another person, there is a risk of
fraud, mis-appropriation etc. putting the bank to loss. The official also will
be accountable for the serious lapse.
547
The payment of a Bank draft cannot be stopped.

 Once a draft is issued the Bank becomes a trustee of the payee for the
draft amount. Further the Bank Draft carries a promise of the Bank that it
would pay 'Payee' or 'order' a sum of money for value received and third
parties might have got title to the draft by negotiation. The Bank has
already received the value for the draft.
Bank has decided to subscribe to multiple bureaus for credit information on
prospective borrowers for certain advances.
 Given the fact that credit portfolio including the number of borrowers, has
been on the rise, with the sharpest spike being in the Retail segment, the
necessity for multiple bureau has been felt in various quarters.
 Subscribing to Multiple Bureaus helps in mitigating Credit risk by not relying
on single supplier of Credit information
 Multiple bureaus will also allow the Indian lending industry, to exploit the
significant experience they have in other markets which will lead to better
data quality as the lenders.
PAN card of student/parent is mandatory for all Educational Loans.
 To mitigate the difficulties faced by operating staff in contacting the
borrower after completion of studies and rising NPA in Education Loans .
 To facilitate follow up and track the borrower easily.
While opening accounts in the name of Partnership Firms, in addition to other
formalities we take Partnership Letter.
 Through Partnership letter the partners undertake to advise the Bank of
any change inthe constitution of the firm
 The Partnership letter is signed by all the partners confirming that they
abide by the terms of opening and mode of operation of the account
(Partnership Deed may not have been signed by all the partners)
The account of a firm is overdrawn but each of the partners has a private
account with a credit balance. Under what circumstances could the bank set-
off those balances against the firm's debts?
 Every partner in a partnership is liable, jointly and severally, for all acts of
the firm done while he is a partner. This liability is unlimited and extends
even to the private property of the partner concerned as per Section 25 of
the Partnership Act, 1932
 This does not give the banker, right to set-off automatically between the
overdrawn account of the partnership and the credit balance(s) in the
individual partner's account. If the banker wishes to exercise such a right,
the bank's usual letter of set-off should be got signed by the partners in
their personal capacities or individual letter of authority should be taken
from each of the part-ners authorizing the bank to transfer funds from their
individual accounts to the account of the partnership as and when it is
overdrawn
What actions you will take when rent is overdue in a locker?
 Following Procedure will be followed in case of non-payment of rent of a
locker
 Reminder will be sent to the hirer (s) on due date
 In case locker rent remains unpaid even after serving notice, the recovery
of arrears of rent may be made by sale of contents of locker.
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 Controlling authority's approval will be obtained before breaking open the

locker
 After breaking open the locker inventory of contents shall be prepared in
the presence of two officers of the branch and two independent witnesses.
 Contents so found in locker will be valued by an approved Govt Valuer and
kept on record.
 Arrear of rent may be realized by sale of the contents
The hirer of a locker operated the locker but forgot to lock it after the operation.
The locker official observed the same at the end of the day. What steps are to
be taken to protect the bank's interest?
➢ An inventory of the contents should be taken; it is to be witnessed by two
officers of the bank preferably joint custodians; it is preferable to have it
witnessed by a valued customer of the bank. The contents may be kept in
a sealed packet as a safe deposit item in the custody of BM/ Acct. The
customer has to be contacted for taking delivery. The matter should be
explained to the locker holder in detail as also put on record; the contents
have to be delivered against his unconditional acknowledgement of the
entire contents. The customer would be requested to be cautious in
operating the locker in future.
The Bank has erroneously credited Rs. 10,000/ relating to A's Account
toB's A/c . Subsequently B closed the account and has drawn the entire
amount available in the account including the wrongly credited one. A has now
claimed the amount. Discuss the situation.
 Any credit afforded wrongly must be returned along with interest as this
leads to UNJUSTenrichment as per Section 72 of Contract Act,1872.
 In the cited case the relative vouchers/records etc has to be scrutinized
and the bank will make good the amount to A's account without delay and
demur.
 However, the bank can legally proceed against B to recover the dues .
The staff concerned must be made accountable for such act.
A customer of your branch approaches you and narrates the loss of ATM card
along with her purse in the market. She fears that the PIN of the card might
have been written in the cover. She urges to stop operation of the account and
the card. As a branch Manager what is your action.
➢ The genuineness of the claim and identity of the lady will be
established if found satisfactory, then a written request would be asked
for. The account will be hold and the card can be blocked through INB
branch interface. Also the customer will be educated not to record the PIN
in the card envelope etc but to memorize the same. Further, other means
to blocked the card viz: through con-tact centre, sending SMS to 567676
from the registered mobile of the customer etc will be explained to her.
Cash flow statement is studied while opening of a LC
➢ The Bank has to ensure that the borrower has the ability to generate
adequate funds to effect payment of bills drawn under the LC when they
are received for payment. If he is unable to pay, it would result in
devolvement of such payments on the Bank.
Validity period for Cheques/Drafts/Banker's Cheques / Pay Orders / IOIs has

been reduced from six months to three months by RBI effective from
01.04.2012.
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 To address the regulatory concerns.

 To obviate the possibility of taking undue advantage by some
unscrupulous elements, of the said practice of banks of making payment
of cheques/drafts/pay orders/banker's cheque presented within a period of
six months from the date of the instrument as these instruments are being
circulated in the market like cash for six months.
Prior administrative clearance should be obtained in all cases from the Global
Markets Department, Corporate Centre, Mumbai, where equity shares are being
pledged as security (primary/collateral), before disbursement of the advance.
 In terms of Section 19(2) of the Banking Regulation Act, 1949, no banking
company shall hold shares in any company, whether as pledgee,
mortgagee or absolute owner, of an amount exceeding 30percent of the
paid up share capital of that company or 30 percent of its own paid up share
capital and reserves, whichever is less.
 In order to ensure such compliance, prior administrative clearance should
be obtained.
Controllers must visit branches at stipulated intervals.
 In order to monitor adherence of bank's laid down systems and procedures
 To verify quality of assets maintained at branches / operating units with an
end to minimize operational and credit risks the bank is exposed to in day
to day business operations.
Bank has decided to subscribe to multiple bureaus for credit information on
prospective borrowers for certain advances.
 Given the fact that credit portfolio including the number of borrowers, has
been on the rise, with the sharpest spike being in the Retail segment, the
necessity for multiple bureau has been felt in various quarters
 Subscribing to Multiple Bureaus helps in mitigating Credit risk by not relying
on single supplier of Credit information
 Multiple bureaus will also allow the Indian lending industry, to exploit the
significant experience they have in other markets which will lead to better
data quality as the lenders.
It has been instructed that all branches/CPCs to ensure tagging of all eligible
Education Loans sanctioned to Economically Weaker Sections as "Yes" in
"Interest Subsidy for EWS" field in CBS.
 Any education loan account, which is otherwise eligible for interest subsidy
but not marked in CBS, will not be available in the portal for claiming
subsidy.
 An eligible student of EWS must not be deprived of the subsidy being
provided by the Government of India.
Multiple Demand Loans against the same TDR/STDR can now be permitted.
 At present the depositor(s) can avail only one Demand loan against the
TDR/STDR. Some of the customers have requested that they should be
allowed multiple Demand Loans against the same TDR/STDR so long as
the total loan limit is within the overall permissible amount against the
TDR/STDR.
 To enable the customers to draw the loan in different quantum as per their
requirement.
Branches have been advised to go for Up-selling of Two Wheeler Loans to Car
Loan customers
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 To leverage the increased business trend in our Car Loan portfolio due to
latest festival offers such as lowest EMI, No processing fee, and waiver of
pre payment penalty.
 Many car loan applicants who have adequate income and are eligible for
higher loan amounts but avail only lower amount required to buy a car.
 There is an opportunity to sell our Two Wheeler Loan scheme to such
prospective borrowers having college-going children.
 Some car loan applicants may be apprehensive of asking for two loans at
a time even though they have adequate means and necessity
Branch should obtain a STDR from new hirers of Safe Deposit Lockers.
 Lockers to be allotted on first come first basis without insisting for deposits.
However, To ensure prompt payment of rent, Branch should obtain a STDR
from new hirers that would cover 3 years rent and the charges for break
open in case of an eventuality
Passwords of computer users should be changed frequently.
 Security should be maintained in respect of passwords used by different
functionaries at the branch.
 To prevent unauthorized access to the account.
 Software packages do not accept the passwords those have not been
changed for a long time.
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Practice set - RATIONALES

1. Bank is paying greater attention on making P-segment advances.
2. ATM cum Debit will not be issued in Max gain Account.
3. We should not grant advance against TDR's issued by other Banks
4. Why LTV Ratio for P-Segment loans?
5. A D.P note is obtained from the borrower in addition to the ornaments pledge
to the bank.
6. When an LIC policy is reassigned after the advance has been repaid, the policy
holder is advised to do the fresh assignment or nomination.
7. PAN card of student / parent is mandatory for all Educational Loans.
8. Aadhaar based e-KYC Services has been made live in the Bank
9. Electronic Dealer Finance System (eDFS)
10. SBI encourages Merchant Acquiring Business-POS
11. Cash withdrawal at SBI Point-of-Sale
12. Bank has introduced a Nomination drive.
13. Nominees signature is not obtained by the Bank on the nomination form.
14. Branch Manager should scrutinize staff accounts at periodical intervals
15. Even though a Contract with a Minor is void abinitio, Banks open savings bank
account in the name of the minor.
16. Post Dated cheques are not paid by Banks.
17. TDR deposit are not transferable by endorsement whereas draft are
transferable by endorsement.
18. Partnership letter (COS 37) is obtained from partnership concern when an
account is opened.
19. Agri Gold loan encouraged at rural branches.
20. Need for Credit Scoring Model in P Seg Advances
21. Produce Marketing Loan is given to Farmers.

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22. Scoring model for Tractor Finance introduced.
23. Dr/ Cr summations in CC account should be verified when account is renewed.
24. Fresh AB1 need not obtained at the time of renewal and only revival letters are
to be obtain once in 3 years.
25. A contract with a minor is void. But the bank encourages opening of SB/TD
account in the name of minors
26. The payee of a cheque cannot stop payment of a cheque.
27. Changing a bearer cheque into an order cheque does not require drawer’s
signature (but the reverse is not true)
28. Bank can’t stop the payment of draft
29. Payment of a cheque outside business hours is not made to any person other
than the drawer
30. Overdraft is granted against LlC policy, shares etc. but not a Demand Loan
31. A cheque payable to a firm may not be accepted for credit to the private account
of a partner without consent of the other partners. Why?
32. Bank is making thrust on CASA deposits
33. RBI has allowed banks to purchase/sell NPAs
34. A non-profit making association can’t be a partnership firm
35. Preventive Vigilance committee meetings have to be conducted at branches.
36. Financial transactions should not be put through by the branches based on
email request of NRI/ domestic customers.
37. Margin is stipulated for advance against Stocks/ Assets charged to the Bank.
38. Equitable Mortgages have to be registered with CERSAI.
39. Moratorium period is given for repayment of Term Loans.
40. Merchant establishments prefer cards to cash for payment.
41. Staff accounts must be scrutinized periodically by BM.
42. Assured Car Loan introduced.
******
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SOLUTIONS ‐ RATIONALES
1. P-Segment is Thrust area identified by the Bank. Excellent scope due to high
middle-class population. Competitive need. When credit off take is low in other
segments.
2. Max gain is housing loan as an overdraft facility. Debit to this account only once
at the time of disbursement. If ATM card is issued there are chances of debit
transactions at the instance of borrower.
3. Other Banks may refuse to note lien in their books in our favour. Moreover,
issuing Bank has a first and paramount Lien on it and may exercise the right of set-
off also.
4. In order to increase safety margin for the bank. To minimize loss due to default
and prevent slippages.
5. If sale proceeds of the ornaments pledge to the bank are inadequate to cover
the entire outstanding in the account, we can sue the borrower for recovery of the
shortfall on the strength of the DP. Note.
6. As per Section 38 of Insurance Act, a nomination made before any assignment

is cancelled in favour of nominee by an assignment of the policy. Hence customer
is advised to make a fresh nomination.
7. To mitigate the difficulties faced by operating staff in contacting the borrower

after completion of studies and rising NPA in Education Loans. To facilitate follow
up and to track the borrower easily.
8. To provide better customer service. To avoid the risk of fraud. To avoid

duplication of customers.
9. An application that aims to automate the loan disbursal and interest recovery
process. It provides a repayment model through the Internet banking and other
channel system. The application is customizable for all customers who require a
Dealer Discount Scheme and enjoy dealer financing limits with SBI.
10. The facility of making payments through Cards encourages your customers to
spend more as they are not constrained by cash on hand, resulting in Customer
Stickiness and Increased Sales volume. By accepting payment through cards,
sale proceeds are credited electronically to merchant account as per the agreed
transaction cycle, thereby providing Better Cash Management and Speedy
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Payment. Lower volumes of cash reduce vulnerability to theft and minimize

counterfeit notes.
11. To allow more cash points and for greater customer convenience. Penetrating
into the customers heartland, providing service near to their doorstep. POS
terminals can perform the cash dispensation function it will reduce queues at the
ATMs /Branches.
12. Create awareness among the customers by communicating & encouraging

them to opt for nomination facility & prevent legal issues as well as reduction in
cases of unclaimed deposits in future. To avoid reduction in our deposit base and
check flows to the Unclaimed Deposit- Depositor Education & Awareness Fund
Scheme (DEAF) of Reserve Bank of India. For hassle free settlement of claim of
deceased account
13. Nomination can be changed by the depositors during the currency of the
deposits. To meet the confidentiality requirement from the depositors. Nominee
is not a party to the contract for opening of an account, his signature is need not
required.
14. To ensure that the inflow of monies, spending and life style of staff members
is of usual nature commensurate with the know source of income. As measure of
preventive vigilance. A tool to reduce frauds by insiders.
15. As per Section 11 of the Indian Contract Act 1872, contract with a Minor is
void. However, as per Section 26 of Negotiable Instruments Acts 1881, Minor can
draw, endorse, negotiate and deliver a negotiable instrument so as to bind all
parties except himself. Banker gets a valid discharge on the cheque; hence deposit
accounts are opened, but no overdraft is sanctioned.
16. Payment of a post-dated cheque cannot be considered as payment in due
course as per Section 10 of Negotiable Instrument Act and hence, protection will
not be available under Section 85. Further, if some other cheque is returned for
wants of funds, Bank may be held liable for wrongful dishonour of cheque.
17. TDR is receipt and not a negotiable instrument. The interest on TDR can be
transferred by assignment and notice. Draft is a negotiable instrument and such
title can be transferred by endorsement and delivery
18. It restricts the implied authority and obligation on the part of partners that any
change in the partnership is to be informed to the Bank. This also makes all the
partners liable jointly and severally.
19. NPA level in this product has been very low. RBI has also reduced the risk
weightage on loans upto Rs. 1 lac against gold and silver ornaments from 125% to
50% for capital adequacy.
20. To source quality proposals and to improve the Turn Around Time (TAT), Credit
Scoring Model has been introduced in P Segment. Right Pricing of the product can
be made with the help of Credit Scores which will attract more customers to our
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fold.
21. To provide the farmer liquidity. It enables the farmer to avoid distress sale of
their firm produce at the time of harvest.
22. It has provision for differential margin, security, interest etc. and hence good
borrower can be attracted. To reduce the risk of slippage of account to NPA.
23. To understand the extent of utilization of limits. To arrive at the exact limit
required which should be appropriate with the level of activity taking place in the
unit. To ensure that the limit is not utilized for any other purpose.
24. AB1, assessment contains suitable continuity clause so that credit balance or
nil balance in the loan account will not necessitate obtention of fresh documents.
Personal liability clause in AB1 is terms of limitation act necessitate obtention of
revival letter once in 3 years.
25. To encourage the habit of thrift in them. As per Sec 26 of NI Act, minor can
bind others except himself; he can draw, deliver etc., A minor can give valid
discharge and Bank incurs no liability as long as the account is in credit.
26. The banker is bound to follow the instruction of the drawer only. There is no
privity contract between the Bank and the payee
27. As per NI Act, changing bearer into order is not a material alteration and hence
drawer’s authentication is not required
28. Once a draft issued by the Bank is delivered to the payee it becomes a Trustee
for the payee for the draft amount. Further, the bank draft carries a promise of the
Bank that it would pay “payee” or “order” a sum of money for value received and
third parties might have got title to the draft by negotiation. The bank has already
received the value for the draft.
29. Under Sec.85 of the NI Act, it does not constitute a payment in due course. In
the event of death, bankruptcy, lunacy of the drawer or if payment is
countermanded by him, the bank will not be entitled to debit his account.
30. LIC policy, shares are not authorised securities and can only be assigned in
favour of the Bank as per Sec 33 of SBI Act. These are "actionable claims".
Further debits to pay premia, warrant an overdraft only as no further debits are
permissible in a demand loan account.
31. The failure to query the circumstances under which the property of principal is
credited to the account of an agent amounts to negligence. The Banker would held
liable for "Conversion" under Sec.131 of NI Act
32. CASA Deposits comprising current and savings bank accounts are low-cost
deposits and giving higher profits for the Bank due to high spreads. Interest rates
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on savings bank account are not subject to wide variations as in the case of term
deposits. Further SB/CA with small balance are relatively stable.
33. To create a secondary market for dealing in NPAs by banks and FIs to
generate cash flow for recycling them. To cleanse the balance sheet of banks.
34. Sec.4 of Indian Partnership Act defines as the relationship between persons,
who have agreed to share the profits of a business carried on by all or any one of
them acting for all. Profit is the essential purpose of a partnership. Hence, a non-
profit making association can’t be a partnership firm.
35. It is important that greater awareness is brought about among staff to maintain
vigil to avoid mal practices, frauds. PVC Meetings are to be conducted at branches
to ensure that the Banking operations are carried on smoothly by observing the
laid down systems and procedures for the soundness and safety of banks.
36. A number of frauds have been unearthed as miscreants who stole the email
id/password etc have been able to send fake mails to the Bank, the Bank has been
put to loss. Hence, as a measure of preventive Vigilance, no financial transactions
would be initiated based on emails received from customers.
37. Ensures Borrower’s stake in the project. Margin is a cushion against

deterioration in value and obsolescence of stocks. If margin is stipulated the bank’s
advance would not be covered by market value in case of decrease in price.
38. To create a common registry wherein details of all mortgages by deposit of title
deeds and other data regarding secured transaction. The prospective lenders can
verify whether any charge has been created on the property already.
39. Unit requires adequate time for acquisition of land, construction of premises,
erection of machinery and trial production. It will work above the Break-Even Level
only when it achieves commercial production. Unit requires generally 12 to 24
months for achieving commercial level of operations. At this level only, it can
generate income for the repayment of loans.
40. Merchant establishment can obtain prompt reimbursement from the bank.
Cards induce spot purchases thereby increasing sales leading to higher profits.
MEs are entitled to commission from the card issuers. Unproductive Cash handling
work associated with risks can be avoided.
41. It is an effective preventive vigilance measure which prevents occurrence of

malpractices and frauds. To ensure that the credits in staff accounts are not
disproportionate to the sources of income.
42. Assured Car Loan is available for customers who are not in a position to provide
income proof but having fixed deposits with our Bank. In view of marking of lien on
FDs, there will be no incidence of account turning into NPA.
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FOR AND AGAINST
1. Govt stake in the PSBs should be brought down.
FOR Banks have suffered due to several externally imposed constraints like dual
regulation by the RBI and Finance Min and external vigilance agencies like CVC
and CAG. Banks have also been a victim of directed lending policy of the
Government.
AGAINST In a developing economy like India, we still have a big role for the PSBs as far as
Priority sector lending and Socio-economic funding is concerned. Diluting the
Government’s stake in PSBs could have negative impact on these motives.
2. All the Banks should be merged into a Single Banking Corporation.
FOR A Strong Corporate competes better. Assets will be properly utilized, no asset will
be idle. Administrative costs/expenditures can be synergized. Asset quality can
improve and NPAs will be reduced.
AGAINST Large organizations work on a monopolistic basis without regard to customer

interests. There will be no competition and hence no choice before the customers
who will possibly be ignored. The cost of services may be unilateral and arbitrary.
Priority Sector and common man may suffer and get ignored too. It may create a
monolith, but such an organization will likely lose sight of national priorities.
3. Payment banks are to be promoted in big way.
FOR To provide availability of banking to the un-banked areas, being operated largely
on mobile platform providing easy connectivity and to provide a channel for surplus
funds. Cost effective, accessible and user-friendly solution for the Financial
Inclusion objective.
AGAINST Restricted offerings of these banks, challenge of diversity and chance of monopoly
of large corporates are threats to this initiative.
4. Social Banking objectives need to be separated from the commercial

objectives of the Banks.
FOR This has been a drag on the PSBs by its directed objectives, huge NPA burden and
un-remunerative services. Personalised customer service is not feasible due to the
volume of transactions in branches.
AGAINST In a developing economy like India, we still have a big role for the PSBs as far as
Socio-economic responsibilities and Priority sector lending is concerned. We need
to have a mass banking system in place to bring the majority into organised
economy.
5. The nationalized Banks should be privatized.
FOR Customer service has deteriorated after nationalization. Under private sector,
better accountability would be established. Management control would also be
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better.
AGAINST Priority sector and weaker sections will be affected. Welfare of the employees will
take back seat.
6. New Banks should be floated.
FOR The existing banking network cannot cater to the needs of the huge population of
India. New banks will instil competition so that quality of service will improve. New
customer-friendly products will be introduced.
AGAINST Many of the existing Banks are not performing well and burdened with NPAs. The
prevailing competition, among existing Banks, is already high.
7. Loss making branches should be closed.
FOR Such branches are a drain on the Bank’s resources. Their continuance will further
affect the profitability of Banks. Optimum utilization of manpower can be achieved
by shifting them to profit-making branches.
AGAINST This will affect the morale of the depositors. New strategies should be evolved to
make these branches productive and profit-making.
8. 5-day banking should be introduced.
FOR Bank employees are already over-burdened, and more holidays enable them to get
rejuvenated. This enables them to discharge their role better in their family.
Transactions through alternate channels are also increasing.
AGAINST Against: Banking industry has emerged as an important utility service for the
community and hence, banking services should be available all the time. It may be
difficult for the Banks to beat the competition.
9. Mergers and acquisitions should be encouraged.
FOR Small Banks will find it difficult to manage the risks. It will be easier for regulators
to control the Banks. It is international practice.
AGAINST Only merger will not solve critical problems like NPAs, unproductive branches etc.
Moreover, it is difficult to deal with HR issues.
10. Outsourcing is ineffective.
FOR Outsourcing has caused loss of job in the industry, frauds and loss of reputation of
the bank. Monitoring the outsourced agents is a huge task for the authority
concerned. Lack of professional agencies has caused more worry than good for
the organisation
AGAINST Outsourcing may bring more professionalism with standards/uniformity. The
operational cost of maintenance is greatly reduced by outsourced activities.
11. Public sector Banks should not be in the ambit of CBI / CVC.
FOR Because of the fear of CBI, credit decisions are being affected. Banks’ executives
have to take reasonable risks for business growth and development.
AGAINST Corruption is prevalent in society and Banking transactions are financial
transactions and hence, Bank officials may fall prey to corruption.
12. Banks must introduce performance related incentives.

FOR This will certainly motivate the employees to do a better job and to reach goals.
Encourage new talent to join the system. Reduced fear of favouritism. Improves
efficiency and productivity of the organization. The banks remain profitable and
dynamic. Banks can retain top talent by offering competitive compensation
package.
AGAINST The evaluation of all roles cannot be easily quantified and measured. Performance
measurement is often subjective in case of some roles. There will be fear among
employees, that can certain favoured employees of the management are helped in
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achieving the targets.

13. Variable pay structure should be introduced in our Bank.
FOR Variable pay structure would ensure reward for performance and in-turn will be a
definite motivation for the employees. This would improve the performance culture
of an organisation and would bring a healthy competitive mindset.
AGAINST Considering the varied location and opportunities of the branches of our bank,
implementation of variable pay structure will result in more discouragement among
the staff.
14. SCP (Smart Compensation Package) is a right move in our Bank.
FOR It would ensure retention of new recruits as they would be having a freehand in
managing their earning without any administrative bottlenecks. This would reduce
the stress on the HRMS system. As the tax liability is transferred to the staff, it may
ensure cost saving in the long run.
AGAINST Tax incidence on the staff would be increased in case SCP option is taken by
official. Hence, only few takers for the same.
15. Vacation policy to be strictly followed in the Bank.
FOR This is method of preventive vigilance and is being advocated by the regulators.
This would improve the work life balance of the staff. Encashment of leave salary
would be saved by the bank.
AGAINST This may result in more stress to the already overstretched staff position of
branches. Customer service and continuity of services may take a hit. Staff may
not get the benefit of leave accrual to some extent.
16. Non-monetary motivation is more effective.
FOR Monetary motivation has created an atmosphere of unhealthy competition. In some

cases, it has resulted in mis-selling with ultimate loss of brand value of the
company.
AGAINST Monetary motivation is the biggest motivation of all and any one would always
prefer to have a free hand in managing her/his money.
17. Cross selling affects banking business.
FOR The core activities viz., deposits, advances, recovery of NPAs etc. is not being
given desired attention and hence, customer service, to that extent, will be affected.
Bank employees have already been overburdened with the variety of products.
AGAINST As Banks are viewed as financial supermarkets and hence, all financial products
should be offered by Banks. It is a profitable business.
18. Efficient employees should be rewarded and inefficient employees should
be punished.
FOR It will act as an incentive to improve profitability.
AGAINST Ad hoc policies may not have lasting effect as inefficiency has multiple causes.
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19. Banks should stop performance-linked pay for their staff.
FOR Productivity is varying depending upon the technology used, training imparted, and
expertise in specific areas. The working conditions are not uniform for all
employees.
AGAINST This will lead to better performance by each employee. There will be a great
improvement in customer service and business. Uniform salaries have affected the
desired level of productivity.
20. Inefficient staff should compulsorily be retired / retrenched.

FOR It will improve the efficiency and profitability of the Bank as well as customer
service. Efficient and enthusiastic staff at lower levels will get chance to get
promoted to higher positions.
AGAINST It affects the morale of the staff. It will bring in industrial conflict. Large sums may
have to be paid as compensation.
21. Employees have the fundamental right to strike.

FOR An individual employee is weak and powerless against the employer. Hence strike
has emerged as a collective weapon of Labour to protect their interests against
exploitation.
AGAINST Nowadays, society has become dependent on services provided by Labour and
hence, any strike will affect the smooth functioning of society. It may become a
practice by Labour to threaten the employer to satisfy their vested interests.
22. Career Development System has been launched:
FOR It is a tool to evaluate staff scientifically. It is a process of motivating the performers.

It improves productivity with objectivity. It eliminates human emotions in evaluation
of performance.
AGAINST It creates lot of ambiguity in performance appraisal. It is not practical according to

the organizational culture. Grading of employees promotes division. Compulsory
retirement of officers on the pretext of performance evaluation is inhuman.
23. Uniform to be made as part of Dress Code in our Bank.
FOR A better image of our bank would be established. This would bolster our brand.
Team spirit and oneness would be developed.
AGAINST This is an archaic practice in the 21stcentury. We need to make our staff
professional enough for service delivery rather than focusing on this petty practice.
24. Incentives should be given to the employees who are involved in recoveries
of NPAs.
FOR This will give a boost to recovery of NPAs. It serves as an incentive to staff.
AGAINST Other activities like marketing, processing etc. will not get desired attention. We
already have avenues like DRT, ARCs, and SARFAESI Act for recovery of dues.
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25. The workers should be given a chance to run the Sick Units.
FOR Workers tend to do their best to put the sick unit back on the rails. The workers are
less likely to shirk or strike work, if they are the owners/in-charge of the unit. There
can be a better sense of belonging and all of them may work in unity for a common
cause. The workers may not raise unreasonable and unusual demands. The
workers will try to avoid wasteful expenditures (both money and material).
AGAINST The workers will not be able to raise resources from the market because they do
not possess any track record. Workers may lack business acumen, there will be
no professionalism in management and marketing. There may be group rivalries.
26. Right to work should be made a fundamental right.
FOR Unemployment in youngsters/general public leads to frustration and poverty.

Youngsters might be tempted to engage in anti-social activities.
AGAINST Due to lack of resources, Government is not able to provide work to all the people.
It is the duty of every citizen to ensure that he works for himself and his family
27. India decided to exit Regional Comprehensive Economic Partnership (RCEP)
FOR Tariff elimination due to RCEP could worsen the trade deficit. As import duties are
also a source of revenue for India, it could experience a disproportionate loss of
customs revenue. It threatens farm livelihoods, autonomy over seeds and
endangers the country’s self-sufficient dairy sector. Asian countries are very
sensitive about protecting Service Sector and have not offered much liberalization
even within the bloc to each other. So, in terms to enhanced market access, India
would benefit relatively less from its RCEP partners than the benefits given to them.
AGAINST It would facilitate India’s MSME to effectively integrate into the regional value and
support chains. It could enhance strategic and economic status in the Asia-Pacific
region. This provides chance for India to bring in historic trade reforms, thus
enhancing India’s position as a major global economy and making Indian industry
more competitive.
28. Subsidies in the economy should be immediately abolished.
FOR It is not fair to tax one section of the society and to provide benefits to another
section. Subsidies became a burden on the economy. Because of the subsidies,
sectors where investment is needed for the development of the economy are being
affected adversely.
AGAINST The purchasing power of the poor is very low and hence subsidy for essential
consumer items has to be provided to them. Every citizen is not getting equal
opportunities for development.
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29. Customers' complaint/feedback is the best way for improvement.
FOR Complaints from customers brings forth the shortcomings of our system and to be
taken positively. A customer after timely resolution of his complaint becomes loyal
to the company.
AGAINST These days with so much of choices available to the customers we simply can’t
afford to give scope for complaints. Competitors always look for the slightest of
opportunity to hunt a dis-satisfied customer. With the advent of social media
complaints are now becoming available in public domain and are huge reputation
risk factor for any company.
30. Banks should be exempted from the operation of the Limitation Act.
FOR It will eliminate the need for obtaining revival letters which is a time-consuming task.
Bank staff can concentrate on other profitable activities viz marketing etc.
AGAINST Bank staff may become complacent and may not contact the customer for recovery.
Legal claims should be asserted within a reasonable time and cannot be kept alive
forever.
31. Registration of Equitable Mortgage (EM) should be made mandatory.
FOR EM in favour of Banks is not registered with the revenue authorities and our charge
is not being reflected in the Encumbrance Certificates (EC). This may lead to
fraudulent sale of the asset by unscrupulous borrowers. Registration of EM will
address this issue effectively.
AGAINST As long as the States have not made it mandatory, co-operation from the
registering authority is lacking. It will be an added burden on the borrowers as it
would attract stamp duty.
32. RLMS is made mandatory for Personal segment products:

FOR Standard and uniform appraisal system is possible through RLMS. It is a tool to
implement Risk Scoring Model in loan appraisals. Error free interface to process,
sanction and documentation.
AGAINST It is very cumbersome to process the loans under RLMS platform. The workflow in
RLMS is very tedious. It requires uninterrupted bandwidth connectivity and
infrastructure to run.
33. Banks should market housing loans aggressively.
FOR It is profitable and highly secured. NPA is negligible.
AGAINST Interest rates have become very low due to intense competition. As the volumes
have increased, in case the economy enters a bad phase, the salary earners may
not be able to service the loans. Realisation through mortgaged property is also
difficult and time taking.
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34. Income tax must be abolished.
FOR Corporates and individuals will have better incentive and motivation to work, earn
and save. This enables the Banks to attract huge deposits.
AGAINST The Government will lose a substantial source of income so that, to that extent,
welfare schemes and investments needed in important sectors will be affected.
35. MDR (Merchant Discount Rate) should be completely abolished.
FOR It would help in more penetration of TPD/POS devices in the retail market and the
objective of less cash economy would be favorably addressed.
AGAINST MDR is the source of income for the Payment Gateways like Billdesk, SBI E-Pay,
VISA etc. abolition of MDR would make this business unviable.
36. We shouldn't blindly follow the competitors.

FOR We should carve a niche for ourselves having a long-term vision in mind. Following
competitors blindly may create risks for the whole system. We need to have our
core competencies to be utilised to full potential rather than blindly following the
competitors.
AGAINST Customers these days have become demanding and we need to have all the
products/facilities, with us to retain them. We simply can't afford allowing a
customer to experience a competitor first-hand.
37. All business should have pages on social networks.
FOR Businesses can’t avoid the huge platform to showcase their products and services.
This is also very much cost effective compared to electronic/print media. Complaint
resolution is also easy in social media with simultaneous contact to a lot of
customers.
AGAINST Using social media has become addictive in nations like china and it may cause
loss of man hour. Nasty negative comments exist on social media to many visitors
at a time. Fake comments and messages would add to this worry. It would require
a separate department for moderation and cyber security which add to the
operational costs.
38. Mandatory maker-checker facility in the CBS to be modified for transactions

of Rs 5.00 lac and above only
FOR To obviate the possibility of perpetration of fraudulent transactions in the CBS.
AGAINST This will be a burden on already squeezed manpower and time space of the PSB
functionaries. With the advent of technology unscrupulous elements can be
controlled and tracked.
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39. CSP (Customer Service Points) to be promoted in a big way for financial
inclusion.
FOR To de-congest branches and to provide banking facilities at the un-banked places
where a brick and mortar bank is not profitable, CSPs are to be promoted. It is a
cost effective, accessible and user-friendly solution for the Financial Inclusion
objective.
AGAINST CSPs may pose reputational risk for the Bank if they are not being monitored and
controlled properly. Additionally, service to the customers may become an issue in
case existing CSP is delisted or ceases to conduct the business.
40. Alternate channels should be encouraged.
FOR Transaction cost will be reduced for Bank and therefore, profit will be increased.
Customers can do the transactions on their own without any need to stand in the
long queues. It is almost impossible to offer all our services through branch
network, which will cost the Banks very much.
AGAINST As customers will not be approaching branches and hence, it will be difficult for
Banks to have knowledge about the customers need. Customers will lose human
touch as they will deal with machines / systems only. Complaint management
system, in case of any hardship faced by customers, is not fully established.
41. Small ticket transfer transactions to be made compulsory over alternate

channels only.
FOR To reduce the burden on the bank as regards time is concerned. These can be very
well handled by ATMs, SBI Yono, SBI Anywhere etc.
AGAINST This will improve the objective of less cash economy. Cyber-crime and frauds are
on the rise and the mandatory transfer of these transactions would lead to
reputation risk of the bank.
42. Credit cards are ruining the credit culture in the society
FOR Many a times, proper due diligence is not conduct by credit card issuers. Easy
availability of credit and lavish lifestyles have got the young people debt-trapped.
Defaults are increasing.
AGAINST It is an easy, hassle-free mode of credit dispensation. It is well-established mode

of credit delivery in developed nations.
43. Number of transactions in SB accounts being done through branches should

be restricted.
FOR It diverts the customers towards alternate channels so that, transaction cost will be
reduced and thereby, profits will be increased. It enables the branch staff to
concentrate on other activities viz. marketing, recovery of NPAs, housekeeping etc.
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AGAINST Illiterate customers, customers who are not comfortable with alternate delivery
channels will have to pay the cost for approaching branches. Customers will stop
coming to branches and therefore, staff will not know the customers’ needs and
accordingly, business will not grow.
44. Bank customers still use cheques for settlement of personal/business.
FOR In the rural/interior part of India, people are still not conversant with digital
transactions, so people still use cheques. Cheques and drafts are still considered
evidence in court of law, customers and the banks particularly in the rural areas,
rely more on cheques and other instruments than the electronic accounts and
records. The mindset of customers’ needs to be changed.
AGAINST The cost of security paper and printing cheques has increased. Processing cost in
banks has gone up. There are risks of loss in transit, fraud, and delay due to wrong
delivery, etc. Debit and Credit cards, as well as Internet Banking, provide quick
means of payment and are more cost-effective. Electronic payment systems like
RTGS, NEFT, etc., provide speedy settlement of payment and can meet the needs
of Corporates, Banks, Institutions, especially for large transactions.
45. More Banking facilities should be made free of service charges.

FOR Free services would help in the objectives of financial inclusion, banking habit,
proliferation of digital channels and use of institutional methods in economic
activities. Making banking services chargeable would be a big disadvantage in this
regard.
AGAINST Banks need to recover the cost involved in establishing a service infrastructure.
Because of free services financial discipline is not being achieved and also it is
affecting the bottom line of the banks. Charges recovered would ensure in
improvement of the infrastructure which in turn would be beneficial to the end users.
46. Penalty for non-maintenance of MAB in SB Accounts should be re-
introduced.
FOR This will ensure non-maintenance of un-remunerative and idle accounts in the
bank, which are fraud prone. This will boost our other income and in-turn increases
our CASA ratio.
AGAINST With financial inclusion and corporate salary package where we are already
offering accounts with no minimum balance requirements, this proposition holds no
ground.
47. KYC norms to be further streamlined.

FOR KYC norms are to be streamlined keeping in view the unbanked population of this
nation. A central KYC registry needs to be set up to obviate the problem of multiple
KYC processes at different financial service providers.
AGAINST KYC need to be stringent as more and more cases of Money Laundering and
Financing of terrorism are being reported. A centralized maintenance may create
operational delay and drag on banks.
48. Provision of TDS on interest paid by Banks to be dispensed with.
FOR Banks have become depositors of retail customers, with the investment avenues
in the country getting diversified. The TDS provision has been a bane for retail
customers and senior citizens, owing to the paper work and intricacies involved.
566
AGAINST To bring more and more people under the tax net and to curtail tax evasion.
49. Our Bank should not conduct Government business.
FOR Branches are visited by much higher number of persons and hence, high value
Personal Banking customers do not prefer to deal with us.
AGAINST Bank earns sizeable commission on Government business. The Bank enjoys
floating funds on account of Government business. It enables us to have access to
Government employees / officials so that our P segment business will be increased.
50. Recovery of NPAs should be speeded up by Compromise Settlements.

FOR Compromise proposals help release long outstanding dues, which could then be
redeployed profitably and thus ensure that the amount of interest sacrificed in the
medium term is recovered/paid-back. Such steps cleanse the balance sheet of the
Bank. The real result is presented in the annual accounts. The final accounts
present a healthy picture to all concerned. The bank’s image is well projected.
AGAINST It is not a healthy precedent. Compromise Settlements should be explored when

the default arises due to genuine reasons, which are beyond the control of the
borrower. Otherwise, all borrowers will expect compromises and thus vitiate the
recovery atmosphere. Good borrowers will become bad ones to avail of partial
waiver of interest, etc. If it becomes a regular feature, the country’s reputation will
be adversely impacted, and the credibility of banks will be at stake.
51. Debt waiver is destroying the rural economy.

FOR It cripples the agriculture credit ecosystem as the credit discipline, repayment
mindset takes a direct hit. Moreover, farmers are in distress not because of the
organized FIs but more so because of the money lenders. This would also be an
un-necessary burden of the fiscal health of the nation.
AGAINST Relief to farmers fighting against all odds like repeated draughts, low demand etc
need to be addressed. While industrial sector is receiving so many freebies the
farm sector shouldn't be deprived of some relief which are far and few.
52. The names of Bank’s defaulters should be publicized.

FOR This enables other Banks to avoid lending to such defaulters. This acts as a
deterrent to the wilful defaulters.
AGAINST Sick units which can be rehabilitated will be affected as fulfilment of their credit
need would be affected by such adverse publicity.
***************
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SITUATIONAL ANALYSIS
Situation 1.
A cheque issued by Mr. Amitabh is presented to you on 24/3/2018 and paid.

The cheque is dated 11/3/2018. On 25-3-2018, Mrs. Amitabh comes to the
Branch and gives a letter stating that Mr. Amitabh died on 7-3-2018 and
demands restoration of the amount of the cheque
Situation 2.
Your bank as a secured creditor of a manufacturing unit has issued 60 days

notice to the borrower (under SARFAESI Act 2002) who has defaulted in
repayment. The borrower has failed to discharge his liability within the period
specified. In such a situation what are the measures a Secured creditor may
take recourse to recover his dues?
Situation 3.
Mrs. Poonam, a NRI customer from Canada has several term deposits
(Rs.1.35 crores) with your branch. She wishes to nominate her three children
for these deposits. Two of her sons are in UK and the third son (aged 14) in
studying in Doon school in India.
Situation 4
Shri Kailash Kumar Agarwal is a very long standing customer of your Branch.
He is maintaining various accounts with you and is a valued customer. You
have received a cheque from your Delhi Branch issued by Shri Kailash Kumar
Agarwal. Balance in the account is insufficient. The customer requests you
to detain the cheque for 2 days. He assures you payment within the said
period. What course of action will you adopt?
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Situation 5
Sushant is a Branch Manager of a Rural Branch in Kurnool District of Andhra
Pradesh. The area is inundated by floods recently. There was a heavy
downpour on Sunday night and on Monday morning, when Sushant reached
his Branch, he found that the room where safe custody articles were kept,
was badly damaged because of a fall of very big tree on the building. And
with the resultant leakage all the packets got wet. Sushant apprehended that
the contents in the packets may have been damaged. He immediately served
notices and got the similar announcements made through beat of drum and
other devices in use. Dharma Reddy, a person deposited some packets
came to Sushant after one week and found that his papers were apparently
badly damaged. Sushant explained him the measures taken by the Branch
and enquired what he was doing for the last one week. Dharma Reddy said
the he was away on business work at Hyderabad and was unable to come
back due to bad weather conditions. He was vey furious on the state of the
documents and claims Rs. 3.00 Lacs as compensation for the loss stating
Bank has failed to take care of his articles in safe Custody. He is contending
that the Bank has failed to take reasonable precautions to protect the safety
of the articles kept in its custody. Discuss.
Situation 6
Mr. Ajay and Mr.Vijay raise a loan of Rs. 2,00,000/- (Rupees Two Lacs), from
your MG Road Branch, which they fail to repay despite vigorous follow up
from the Bank. Between them they had the following credit balances in the
following accounts, which the Bank want to appropriate towards the above
irregular loan accounts :
Sr. No. Name of the Nature of Balance
Account Holders Account
1. Mr. Ajay S B A/c Single Rs. 34,000/-
2. Mr. Ajay & Mrs. Sandhya Ajay SB A/c Joint Rs. 65,000/-
(wife of Ajay)
1. Mr. Vijay SB A/c Rs. 45,000/-

(As Father and Natural Guardian of Master Amar, (Mr. Vijay’s son))
2. Mr. Vijay SB A/c Single Rs. 19,000/-

(Maintained at RP Road Branch of your Bank)
From which accounts you will appropriate the amount due.

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Situation 7
Your Bank has granted advance against pledge of medicines to M/s New Bio
Pharma, a pharmaceutical manufacturing company. The company is not
maintaining financial discipline. Bank served notice to company to take
delivery of certain medicines held under pledge with the Bank which were
going to expire, by paying back the amount of money drawn against the
same. M/s New Bio Pharma kept on assuring the Bank that it is taking steps
to repay and obtain release of the goods. In the meantime the expiry date of
medicines matured. Company has raised a dispute and insists that the Bank,
as Pawnee of goods / medicines (responsible for taking due and ordinary
care thereof) should compensate the company for loss. What is the liability of
the Bank?
Situation 8
A telephone call is received from a local departmental store informing that

someone purporting to be your customer Mr. Alex wants to purchase goods
worth Rs.10000/- from the shop and has offered to make payment through
cheque. You are asked to confirm that the cheque when presented at the
branch will be paid. Mr. Alex is a valued customer and always maintains a
very healthy balance in his account. How will you respond in this situation.
Situation 9
You receive oral complaints from quite a few customers that only 99 note
pieces are found in RS.10/- and RS.20/- denomination notes. Since this has
been noticed after breaking the packets and as such they were forced to be
on the defensive. Is it necessary to deal with these oral complaints and if so,
how?
Situation 10
What actions you will take in case a locker is not operated for more than a
year even if the rent is paid regularly and the locker hirer is classified under
High Risk category? Have you acted differently in case the locker hirer would
have been classified under Medium Risk?
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Situation 11.
1. Your customer has complained that the bank has wrongly debited his
account with Rs.10,000 on 25.6.2018. On scrutiny it was found that
i) Rs.10,000/- was debited on 25.6.2018 on the strength of a cheque
presented in clearing by another bank B.
ii) The cheque leaf belongs to the cheque book which was issued by your
branch to a third person on production of a letter.
iii) The letter produced to the bank for obtaining cheque book bears
forged signature of the account holder.
iv) Signatures on the cheque resemble the specimen on Bank's record,
but your customer refuses to have issued the cheque.
v) The beneficiary of the cheque with bank B has withdrawn the full
amount and closed the account. The beneficiary and its introducer both are
not traceable at the given address. Discuss:
Situation 12
Mr. Ramesh, Branch Manager of semi urban branch was surrounded by a lot
of customers who were complaining about the delay in transacting time. The
branch is situated in a busy place with the Agricultural Market Yard in the
lane. Usually there is heavy rush through out the year in the banking hall and
since the crop of Cotton and Chillies started arriving in the market, there is
more rush at the branch. Farmers usually rush to the Branch Manager for
arranging faster payments. There are more than 1300 pensioners drawing
pension from the branch. All these are making the branch very congested
and leading to frequent complaints. The problem intensifies in the first week
of every month. People generally prefer to coming to the branch even though
most of them have ATM cards. These huge crowds make your VIP
customers wary of coming to the branch for their work. Ramesh is an
enthusiastic officer who is recently confirmed and posted as BM for the first
time. He is determined to rectify the position. How can he deal with these
issues?
Situation 13
Q. Your customer Mr. Ramesh Kumar Jain has given a cheque for Rs.50,000
in favour of Y. He writes to the bank not to pay the cheque because he has
intentionally signed as Ramesh Kumar Jain, whereas his specimen signature
reads as "R.K.Jain". This letter was received by the bank after it has already
paid the cheque. Shri Jain claims the amount from the bank on the plea that
his signature on the cheque does not tally with the specimen on the Bank's
record. Hence, the payment is wrong. Discuss:
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Situation 14.
At the end of the day, the receiving cashier at a sub-chest branch has
reported excess cash of Rs. 50,000. The denominational details in the
vouchers were verified and found correct. The amount was credited to Sundry
Deposits A/c. When the branch manager was about to leave, the proprietor
of Gopal & Brothers, one of the Bank's valued customers came to the branch
and said that excess cash of Rs. 50,000/- has been remitted by his cashier
into their account, while making a cash remittance of Rs.4,50,000/-. He also
stated that he can show his cash book and other details to prove that excess
cash of Rs. 50,000/- has been remitted into the account.
Situation 15
Shri. A, a retired Govt. officer, has a TDR of Rs. 3,00,000/- and a SB a/c at
your branch for collection of pension. The account has been conducted
satisfactorily. One day, his neighbour calls at the branch and informs you that
Sri A has been admitted in a nursing home as he has suffered a heart-attack
and has become unconscious; further, an expense of Rs. 20,000/- has been
incurred towards emergency treatment. He also states that Mrs. A has gone
to Los Angeles on a visit to her only son. The neighbour requests you to
release Rs. 10,000/- to the nursing home immediately for further treatment.
How will you act?
Situation 16
Banjara Hills Branch is located in a posh locality of Hyderabad. Branch has

many NRI accounts of IT Professionals located across the globe. Branch got
A+ Rating in 2 consecutive RFIAs. Mr. Kumar, BM is very happy that the
branch is rated ‘the best’ in the recently concluded RFIA also. While checking
e-mails on Monday morning, Mr. Kumar found an email from Mrs. Kalpana
complaining about 10 unauthorised debits amounting to Rs.7.05 lakhs in her
SB-NRE account. A copy of the email conversation was sent to the
Controllers of the branch. Controllers initiated an investigation which revealed
as follows:
1.Unauthorised debits were deducted in 12 NRI accounts which have huge
balances where RINB is enabled.
a) 21 Pre-printed Kits reported missing in the recent RFIA report.
b) Branch compliance in RFIA ‘being traced’ without making concrete efforts to
trace the missing PPKs
c) Thakur, Checker in INB interface re-issued all the twenty one PPKs without
any request from the customers. Profile passwords and mobile numbers were
changed for all the above customers. And this opened the gateway to
unauthorized transactions.
He was aware of maker and checker login credentials for INB Branch
Interface. Explain what are the lapses & how to prevent such frauds
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Solutions to Situations
Situation 1
When Mr. Amitabh died on 07-03-2018, the Bank should have been informed
immediately of his death in writing. Here it is immaterial whether the cheque
had a date prior to the death of Mr Amitabh or not. A drawer can always issue
a post-dated cheque if his intention is that the cheque should be paid only on
or after a particular date. When the banker paid the cheque on 24-3-2018, he
had no knowledge that Mr. Amitabh had died. Hence the banker gets a valid
discharge as long as he has made payment in due course. The request of
Mrs. Amitabh cannot therefore be acceded to.
Situation 2
After expiry of the notice period, bank will take the possession of the securities
charged with the bank and after giving the 30 days public notice, move to sell
the securities through auction.
In case of movable security, bank will after taking the possession will make
the inventory and panchnama and thereafter sell the goods. However, in case
of immovable Property bank will conduct the auction after expiry of public
notice period and confirm the sale in favour of the highest bidder. For
participating in the bid, party will have to deposit 25% and remaining amount
will have to be paid within 15 days after confirmation of the sale by the
secured creditor (bank). Alternatively, bank can do securitization of the loan
and sell the same to the securitization company. Situation 3
Mrs. Poonam is advised that nomination can be made in different term

deposit accounts but there can only one nominee in each account. In case of
the third son (aged 14 years) nomination can be made under guardianship or
there shall be one major person who will sign on behalf of minor.
3. Nomination is permitted in NRE term deposits.

4. NRIs can also be nominated (Two sons are NRIs.)
5. As per Sec. 45ZA of Banking Regulation Act, there can be only one
nominee in one a/c. In case of minor being nominee, another major person
will be appointed on behalf of minor.
Situation 4
Cheque, by virtue of its definition under section 6 of Negotiable Instrument
Act, 1881, is payable, not otherwise, on demand. A demand bill cannot be
detained. In law, the Bank cannot accede to the request of the drawer for
detaining the cheque for 2 days and it has no option but to return the cheque
unpaid with remarks “insufficient funds”. However, the customer being
important, the Bank may take a view to pay the cheque provided it is sure of
the payment, by extending an overdraft facility.
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Situation 5
In this case, Bank being bailee, was liable to take care of the goods as a man
of ordinary prudence will take under similar circumstances of same bulk,
quality and value as per Section 151 of the Indian Contract Act, 1872. As
Bank Served notices and got the similar announcements made through beat
of drum and other devices in use and the fact the loss was befell due to
natural calamity, Mr. Sushant appears to have taken due care as a man of
ordinary prudence would do. Hence the Bank is not liable. Further, if Dharma
Reddy insists for compensation through legal Channels, it may be brought to
court’s notice that the room where all such items were kept was examined at
the first opportunity available. All the packets got wet due to circumstances
beyond the control of Bank.
Situation 6
The Bank has an option to use a Right of set-off in case of first account which
is in Ajay’s name. The amount in Ajay’s account can be appropriated as he
is jointly and severally liable for the loan, provided the funds in the savings
banks account are Mr. Ajay’s. In the case of second account, Bank cannot
exercise the right of set-off, since the balances lying in the joint account is not
in the same right as the loan account. In the case of 3 rd account the Bank
cannot exercise a right of set-off as an account in the name of a person in his
capacity as a guardian for a minor is not to be treated in the same right as his
own account with the Banker. In the case of 4 th account, for the purpose of
exercising of right of set-off the Bank is considered as one unit rather than
the Branch. Hence when the funds are available in the same right the Bank
can exercise its right.
Situation 7
The Bank in this case has informed the Pawner about the expiry of medicines
and has thus taken due care of medicines as required under Section 151 of
the Contract Act 1872. On the other hand Debtor Company has failed to
maintain financial discipline. Section 152 of the Contract Act 1872 stipulates
that the bailee, in the absence of any special contract, is not responsible for
the loss, destruction or deterioration of the thing bailed, if he has taken the
amount care of it described in Section 151. Hence Bank is not liable and will
be protected under Sec. 152.
Situation 8
The bank has to act very carefully to avoid any breach of obligation to
maintain secrecy of customer’s account. Further Mr. Alex is a valued
customer of the bank. As such we shall talk to him and appraise of the
position informing our inability to accede to the request of the proprietor of
departmental store for disclosure of the information. This will help guard
against a possible loss or complications for the account holder as also the
574
bank. We will express our inability to accede the request of the departmental
store. In case of doubt as to the genuineness of the cheque or such requests
bank has to protect the interests of the drawer of the cheque first and not the
payee. Such refusal for acceding to the request of the payee is within rights
of a banker.
Situation 9
Complaints whether oral or written must be looked into immediately with all
seriousness. If no corrective measures are initiated, it could assume wider
proportions and is likely to cause damage to the image of the Bank and get
adverse publicity among the customers and trading circles Steps suggested
are:
* Ensure to display a notice stating that the customers must examine their
cash before leaving the counter.
* Instruct Cash Officer to supervise all operations of the Cash Deptt.

thoroughly.
* Arrange for recounting of notes of all denominations in the strong room to
ensure that there is no shortage.
* Arrange to carry out surprise check of packets
Situation 10
Where the locker has remained unoperated for more than 1 year for a higher
risk category, following actions will be taken:
a. Efforts will be made to immediately contact the locker hirer. He/she

will be advised to either operate the locker or surrender it.
b. Locker hirer will be asked to give in writing, the reasons why he/she
did not operate the locker for such a long period.
c. In case the locker hirer has some genuine reasons as in the case of
NRIs or persons who are out of town due to a transferable job etc., branch
may allow the locker hirer to continue with the locker.
d. In case the locker hirer does not respond nor operate the locker,
branch should consider the opening of the locker after giving due notice
to the locker hirer.
In case of medium risk category customer, the above mentioned actions will
be initiated if the locker has remained unoperated for more than 3 years.
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Solution 11.
It appears that the cheque book has been issued to a fraudster who has
forged the signature of the customer and obtained it. The Bank is negligent
in not verifying the signature on the letter. It appears, prima-facie, that the
fraudster has forged the cheque of the customer. But, it is stated that the
signature resembles the specimen, but the customer disowns it. The position
in law is that if the signature is forged, however cleverly, the cheque is not a
mandate of the customer. We have to satisfy ourselves whether the signature
is genuine, by referring to a handwriting expert, if necessary. If we are
satisfied that the signature is forged, we have to credit the amount to the
customer's a/c without delay.
As the fraudster has closed his account with B bank, our position is rather
weak. Also, if the B bank had collected the cheque for an introduced customer
in good faith and without negligence it would get collecting bank's protection.
Yet, we have to file a criminal case of forgery and fraud.
Solution 12
2. Crowd Management in the first week would be given topmost priority.

3. Attention would be paid to seating and other arrangements ensuring
that the crowd is not blocking the entrance and movement of other
customers in the banking hall. The HNI customers would be provided
with separate seating place and counter for exclusivity and privacy for
their transactions.
4. As a long term measure, identify the reasons of ATM Card holders not
opting to use ATMs for withdrawals. This issue would be addressed
by educating customers about the convenience factor in ATM and by
demonstrating how easy it is to use an ATM Card. Sensitization
programmes can be organised.
5. Confidence measure in customers would be undertaken by speeding
up and attending to withdrawal related ATM complaints immediately.
Further, the front line staff would be asked to persuade the customers
to use GCC facility by installing GCC in all single window counters.
6. Organizing the staff meeting and explaining the benefits of educating
customers about usage of ATM and other channels.
7. Implementation of CEEP initiatives in true spirit.
8. Popularising “No Queue app” of the bank among customers.
Solution 13.
The general proposition that a bank need not pay the cheques signed by the
customer in a different mode than the specimen provided by him is well-
established. The important question to be answered first is can the bank pay
a cheque signed by the account holder in a different mode than the specimen
furnished by him. The answer is 'yes' as it is a valid mandate to pay. In fact,
in the instant case he has advised that he had signed as Ramesh Kumar Jain
576
and not R.K.Jain, as provided in the specimen. Hence, there is no dispute

that the signature has been put on the cheque by the customer. The cheque
has been paid in due course and hence it is binding on the customer. He
cannot now contend that the signature varies from that on record or that he
intended the cheque to be returned.
However, a disturbing question has to be answered by the branch. How such
a cheque was paid? The cheque ought to have been returned with the reason
"Signature differs". It is a dangerous practice to pay cheques signed in a
different mode than that in the specimen signature.
Solution 14.
It is a very ticklish situation. We are not bound to refund the amount merely
because the amount claimed is the difference found in our records. May be,
another claim will be received by us from another party, after a few days.
However, the customer is a valued customer; he has come to the branch on
the same day and claims that his accounts show that excess cash has been
remitted into the account by mistake. The credit voucher of the company/
system should be perused to find out any clues of excess remittances. This
can be verified by perusing his account books also.
We may agree to pay him the amount if he provides an indemnity to the bank
against any loss or damage or claim on account of this payment. We may
also request that the amount be kept as a term deposit for a period of 1 year
(The customer generally will not resist the idea). This will also enable us to
meet the liability if any other claim is proved against us. The settlement
should be effected after referring to the Controlling Authority so that sufficient
time will lapse before we agree for the payment; and if any other claims are
received meantime, we will be able to decide on the genuineness of the
various claims.
It must also be remembered that the customer can make claim against the
Bank on the ground of 'mistake of fact' in a Court of Law. i.e., instead of
remitting 4,50,000/- he had remitted Rs.5,00,000/-.
Solution 15.
We will visit the customer at the nursing home. We have to ensure that the
message of his illness has reached his wife so that she can come back
immediately. The neighbours would probably have already arranged for it.
In the present condition of the customer, he will not be able to sign/put the
thumb impression on the cheque/withdrawal form. Payment of the amount
may be made to the Nursing Home against the acknowledgment by a
responsible person, for the specific purpose of treatment of Mr. A. The
witness of two respectable neighbours who are now helping Mr. A in the
nursing home may be obtained on the debit voucher.
The customer is a retired Govt. officer and has substantial Term Deposits at
the branch; also, the account is being conducted satisfactorily. Hence, it is
an extra-ordinary case calling for extraordinary sense of concern for the
customer. The customer/his wife will appreciate the bank's action and the
577
image of the Branch will also go up.

However, in the unlikely event of the customer contesting the debit, we can
successfully counter it on the principle of 'Quasi-contract', as any liability
incurred by a third party in these circumstances should be reimbursed by the
beneficiary to the third party. This is only a very remote contingency.
Solution 16
Lapses:
1. Passwords of INB Branch interface compromised.
2. Stock of PPKs not monitored with the help of INB reports.
3. False confirmation/certification in RFIA report. Ways to
prevent this type of Frauds:
a. Regular monitoring of PPKs.

b. PPKs should be accounted for, by entering and maintaining in a
register.
c. Each PPK issuance should be acknowledged by the customer by
signing in the register.
d. Creating IS Security Awareness
e. Implementing maker-checker functionality in true sense.
f. Strict compliance of RFIA remarks.
*********************
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578
Data interpretation
Study the following information carefully and answer the questions given
below
In a college there are 1400 students who are doing graduation in any one of the
subjects, out of the five different subjects viz. zoology,Botany Mathematics, Physics
and Statistics. The ratio of the number of boys and girls among them is
6:8.30% of the total girls are doing graduation in Zoology and 20% of the total
girls are doing graduation in Statistics. The total number of students doing
graduation in Botany is 220. 250 students are doing graduation in
Mathematics. The ratio of the number of girls and the number of boys doing
graduation in Statistics is 2:1.20% of the total number of boys are doing
graduation in Botany. The ratio of the number of girls and that of boys doing
graduation in Mathematics is 2:3. There are an equal number of boys and girls
doing graduation in Physics. 290 students are doing graduation in Zoology
1. What is the total number of students doing graduation in physics and

Statistics together?
1. 510 2. 540 3. 640 4. 620 5. 660
2. What is the ratio of the number of boys doing graduation in Mathematics

and to a number of girls doing graduation in Botany?
1. 1:2 2. 3:1 3. 3:4 4. 3:2 5. 2:1
3. What is the difference between the number of boys doing graduations in

Zoology and the number of girls doing graduation in Mathematics
1. 50 2. 75 3. 60 4. 45 5. 55
4. In which of the following graduation courses, the number of the girls the
highest and in which course is the number of boys is second lowest
respectively?
1. Statistics and Zoology 2. Zoology and Botany 3. Physics
and Statistics
4. Zoology and Statistics 5. Physics and Zoology
5. The number of girls doing graduation in Statistics is what percent of the
number of boys doing graduation in physics?
1. 76% 2. 75% 3. 80% 4. 81% 5. 78%
Answer :
1. 3; Required answer = 200 + 200 + 160 + 80 = 640
2. 4; Required ratio = 150 : 100 = 3:2
3. 1; Required difference = 100 - 50 = 50
4. 4; Zoology and statistics
5. 3; Required percentage = 160/200 x 100 = 80%
579
Study the pie-charts carefully and answer the questions given below
The following pie-charts show the run scored by a batsman against different
countries in one-day internationals (ODI) and Twenty (T20) world cup matches.
Runs scored by the batsman in ODI and T20 are 2800 and 2000 respectively
1. If the batsman played 14 innings against Sri lanka in ODI and remained not
out in 5 innings. Find his average runs scored against Sri lanka.
1. 28 2. 24 3. 26 4. other than the given options 5.
22
2. Runs scored by the batsman against New Zealand in T20 matches are
approximately what percent of the runs scored against Pakistan in ODI?
1. 64% 2. 66% 3. 62% 4. Other than the given options 5. 68%
3. In case of which of the following countries, the difference between the runs
scored in ODI and T20 is the second lowest?
1. Sri lanka 2. Pakistan 3. South Africa 4. WI 5. None of these
4. The runs scored by the batsman against WI in T20 is approximately what

percent of the runs scored against Australia in ODI?
1. Other than the given options 2. 71% 3. 75% 4. 73% 5. 69%
5. If the batsman had scored 280 runs against Pakistan in T20 matches, What
would have been its percentage in the T20 match, if the total runs scored in
T20 remains the same?
580
Countries ODI T20

Pakistan 294 190
Australia 490 230
England 308 180
Sri Lanka 252 250
S. Africa 350 330
New Zealand 336 200
Zimbabwe 378 260
WI 392 360
1. 1;
Required average runs
2. 5;
Required percentage
3. 3;
The difference between the runs scored in ODI and T20 against:
Pakistan = 140 Australia = 260
England = 128 Sri Lanka = 2
S. Africa = 20 New Zealand = 136
Zimbabwe = 118 WI = 32
4. 4;
Required percentage
5. 4;
Required percentage
581
3.. The following pie-chart shows the distribution of the monthly family budget of a
person.
The following table shows the further distribution (in percent) of the above-mentioned
items among the five family members i.e P (the person himself), W (his wife), Rahul
(son), Rohit (son), and Preeti (his daughter). His monthly family budget is Rs.
1,20,000
Education Food Entertainment Travelling Other expenses
P 10 30 10 40 20
W 15 25 30 10 25
Rahu 40 20 20 25 20
l
Rohi 25 15 25 10 10
t
Pree 10 10 15 15 25
ti
1. What is the average expenses of P?
1. Rs. 5620 2. Other than the given options 3. Rs. 5640
4. Rs. 5460 5. Rs. 5480
2. What is the approximate percentage increase in the amount Which Rahul

enjoys for entertainment as compared to Preeti for the same?
1. 33% 2. 31% 3. None of these 4. 37% 5. 35%
3. The average expenses of Rohit is approximately what percent of the average

expenses of W (Wife)?
1. 76.4% 2. 81.5% 3. 79.5% 4. 83.5% 5. None of these
4. Find the difference (in percentage of the budget) between the average
expenses of Education and the average expenses on Entertainment of the
couple?
1. 1.3% 2. 0.9% 3. 2% 4. None of these 5. 2.5%
5. The total amount spent by Rahul on Travelling and Food is approximately
what percent of the total amount spent by Preeti on Education and Food?
582
583
3. Details of employees deployed at different levels by a company in different departments.
Officer
Manager
Department Number M: F Number M: F
6: 8
Operations 2200 7: 4 2800
Public 1800 5: 4 2500 9: 11

relations
Finance 2500 14: 11 3200 17: 15
Advertising 2900 12: 17 1600 9: 7
Sales 2400 9: 7 2600 8: 5
Procurement 2700 5: 4 2200 9: 13
1. The total number of female employees (Managers and Officers) in

Procurement department is approximately by what per cent more than their
male counterparts?
1. 2% 2. 6% 3. 4% 4. 8% 5. 9%
2.. The number of female managers in Finance department is what per cent of the
total number of male managers in Sales department?
1. 77 % 2. 82% 3. 78% 4. 84% 5. 81%
3. What is the ratio of the total number of female managers in Operations and
Finance departments to that of male officers in these two departments?
1. 25:29 2. 19:26 3. 19:25 4. 19:29 5. 22:29
4. The total number of male officers in Advertising and Sales departments is

approximately what per cent the total number of officers in these two departments?
1. 55.8% 2. 56% 3. 57.5% 4. 54% 5. 59.5%
5. What is the difference between the total number of female officers in Advertising
and Public Relations department and the total number of female managers in these
two department?
1. 405 2. 415 3. 425 4. 435 5. 395
6. What is the ratio of the total number of managers in Public relations, Finance,
Sales and Operations department to the total number of officers in Finance,
Advertising. Sales and procurement department?
1. 89:95 2. 87:96 3. 87:89 4. 93:95 5. 89:96
584
Answers:
6. 5;
Required Ratio
= (1800 + 2500 + 2400 + 2200): (3200 + 1600 + 2600 + 2200)
= 8900: 9600 = 89:96
585
.
586

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SBILD TIRUCHIRAPALLI

It gives me immense pleasure in releasing “VETRI 2024”, the updated Promotion

“அருவினை யென்ப உளவவோ கருவிெோன்

My best wishes to all the candidates.

Promotion exercise demands exhaustive efforts to assimilate information on various

I wish them all success in their efforts.

It is with immense pleasure and deep sense of commitment I introduce this

The Promotion booklet, “VETRI 2024” is not merely a compilation of information on

I wish the candidates success in the examination.

Shri.Arivalagan. P, AGM & Director, [email protected] 7045814547

1 Syllabus, Pattern of Examination 8

5 Financial Results & Performance 23

6 KYC, AML/CFT, PMLA, FATCA, etc. 43

8 System and Procedures 74

9 Safe Deposit Lockers, Safe Custody, Articles, etc. 95

10 Legal issues / Laws relevant to Bankers 101

11 General awareness about Banking 123

12 Practical problems on General Banking 135

13 Liability products 145

14 P – Seg Asset products 166

15 SME Advances and products 238

16 Agri Advances and products 265

17 Priority Sector Lending 274

18 Government Business & Government products 281

19 Digital Banking / IT Products 299

20 Pre-sanction, Post-sanction process, CICs 332

21 Payment Solutions, Transactional products 347

22 Forex / Treasury / International Banking / NRI Business 358

24 Customer Grievances / BCSBI / Customer Service 394

25 NPA Management 399

26 Human Resources 416

27 Preventive Vigilance & RFIA 419

28 Customer Value Enhancement / Cross Selling 431

29 Recent Circulars, Changes in Banking and Economic 436

30 Quick Recap / One liner points 457

31 Key Highlights of Union Budget 2023 465

31 English Language & Comprehension 477

32 Essays on Banking / Economics related topics 499

33 Business Correspondence 520

34 Rationale, For & Against, Situation Analysis 526

35 Data Interpretation 579

Knowledge about products & services of our Bank including retail

Knowledge of CBS and other IT products in use in the Bank and IT 20 15

Latest Financial results, performance indicators of the Bank and

TOTAL (Overall qualifying marks 65% (for General)

Latest Financial results, performance indicators of the

Organizational Structure & Policy guidelines of the Bank 10 10

Total (Duration: 150 minutes) 140 100

Officer MMGS-II Examination

Officer MMGS-III Examination

Specialist Officers: Scale II & Scale III

Total Duration – 90 Minutes 140 50

IMPORTANT DATES TO REMEMBER

Born as Bank of Calcutta (2 June 1806)

Bank of Bombay (15 April 1840)

➢ SBI honoured with “India’s Best Annual Report Awards-2022

Service - Principle 1: Serving Our Customers

*Top 5 banks by market capitalization in India (As of 16.10.2023)

*Top 5 banks by market capitalization in the world (As of 31.08.2023)

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