100 Banking Awareness points for BANK EXAM

100 Banking Awareness points
▪Exchange of cash flow in different currency is known as: Ans: Currency Swap
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Expand ASBA:Ans: Application Supported by Blocked Amount
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Fastest mode of transaction: Ans: RTGS

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First Indian Bank to introduce credit card: Ans: Central Bank of India
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Fixed Deposit (FD)Account may be opened for a minimum period of: Ans: 7 days
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Fixed deposits and recurring deposits are: Ans: repayable after an agreed period
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Forward Market Commission merge with: Ans: SEBI
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Full form IFSC – Ans: Indian Financial System Code
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Full form of CASA –Ans: Current Account Saving Account
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Full form of CVV: Ans: Card Verification Value
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Full form of EFT: Ans: Electronic Fund Transfer
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Full form of REIT:Ans: Real State Investment Trust
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How much amount of money can RBI lend to a bank? Ans: 2% of NDTL
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How much amount RBI allows in 'Tap and pay'transactions without PIN? Ans: Rs. 2000
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How much fee charged to file a complaint under Banking Ombudsman? Ans: Banking
Ombudsman does not charge any fee
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How much overdraft facility to be provided in 'Pradhan Mantri Jan Dhan Yojana'
scheme? Ans: Rs. 5,000
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If a cheque is postdated, the bank on which it is drawn: Ans: will not honour the cheque
before the date of the cheque
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If any customer is not satisfied by the decision of Banking Ombudsman, customer can
appeal against the award before the appellate authority within how many days from the
date of receipt? Ans 30 days
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If RBI reduces CRR, what happens: Ans: Credit Supply increases, loans get cheaper.
222 IFRS full form:Ans: International Financial Reporting Standards
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IFSC code consists of _____ alpha numeric code. Ans: 11 digits (The IFSC is an 11 digit
alpha numeric code, with the first four digits identifying the bank, fifth is numeric(kept
0) and the last six digits represent the bank branch.)
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IMPS - Immediate Payment Service is an interbank electronic instant mobile money
transfer service through mobile phones in India, the facility is provided by: Ans: NPCI
(National Payment Corporation of India)
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In a bank, which of the following are the usual types of accounts? Ans: Current
accounts, Savings bank accounts and Term deposit accounts
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In banking business, when the borrowers avail a term Loan, initially they are given a
repayment holiday and this is referred as: Ans: Moratorium
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In BSBDA (Basic Savings Bank Deposit Account) the balance at any point of time does
not exceed rupees: Ans: Rs. 50,000
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In BSBDA (Basic Savings Bank Deposit Account) the credits in a financial year does
not exceed rupees: Ans: Rs. 1 lakh
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In BSBDA (Basic Savings Bank Deposit Account) the withdrawals and transfers in a
month does not exceed rupees: Ans: Rs. 10,000
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In CBS, C stands for: Ans: Core
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In CRAR, A stands for: Ans: Assets (Capital to Risk Weighted Assets Ratio)
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In India, one- rupee coins are issued by: Ans: Govt. of India
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In what denominations Commercial Paper (CP) can be issued? Ans: Rs. 5 lakh
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In which of the following fund transfer mechanisms,can funds be moved from one bank
to another and where the transaction is settled instantly without being bunched with any
other transaction?Ans: RTGS
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Increased interest rates, as is existing in the economy at present will: Ans: mean higher
cost of raw materials
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PIN is a number allocated to an individual and used to validate electronic transactions.
●Expand PIN:Ans: Personal Identification Number
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Pradhan Mantri Jan Dhan Yojana' is a Scheme for: Ans: Financial inclusion
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Prime Lending Rate is replaced by: Ans: Base rate
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Purpose of starting Minor account for 10 years children: Ans: Financial inclusion
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RBI established on: Ans: April1, 1935
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RBI extended the timeline for full implementation of Basel III norms till: Ans: 31 March
2019
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RBI gave in-principle for Banking license to: Ans: IDFC and Bandhan
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RBI lifted a ban on carrying Indian bank notes of Rs1,000 and Rs. 500 denominations to
and from:Ans: Nepal and Bhutan
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RBI measure to liquidate the market: Ans: Repo rate.
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RBI nationalized in: Ans: January 1, 1949
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RBI policy related to money laundering? Ans: Know Your Customer
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Regulator of Capital Market in India:Ans: SEBI
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Regulator of Micro, Small and Medium enterprises in India: Ans: SIDBI (Small
Industries Development Bank of India)
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RuPay Card is an Indian version of credit/debit card is launched by which organization:
Ans: NPCI (National Payments Corporation of India)
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Short term Money lending process is known as: Ans: Call Money
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SLR ((Statutory Liquidity Ratio)is the amount a commercial banks needs to maintain in
the form of _______before providing credit to its customers. Ans: cash, or gold, or govt.
approved securities (Bonds)
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Special Drawing Right (SDR) is a monetary unit of: Ans: IMF
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Teaser rates are related to which type of loans: Ans: Home loans
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The Banks has converted all ‘no - frills' accounts’ into: Ans: Basic Savings Bank
Deposit Accounts
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The Central Bank of India has adopted new measure of inflation: Ans: Consumer Price
Index (CPI)
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The holidays for the banks are declared as per: Ans: Negotiable Instruments Act
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The maximum deposit amount insured by DICGC? Ans: Rs. 1 lakh per depositors across
all banks
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The most powerful tool used by the Reserve Bank of India to control inflation is to: Ans:
raise interest rates
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The MUtual funds in India follow accounting standards laid by: Ans: SEBI (Securities and Exchange Board of India)
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Know Your Customer (KYC) guidelines are issued under: Ans: Section 35A of the
Banking Regulation Act, 1949
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Loans of very small amounts given to low income groups is called: Ans: Micro Credit
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MICR code consists of how many digits?Ans: 9 digits.(First three digits denotes city,
next three digits representing the bank and the last three digits representing the bank
branch)
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Minimum & Maximum Limit of NEFT: Ans: no limit
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Minimum amount for Certificate of Deposit has been fixed at: Ans: Rs. 1 Lakh
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Minimum capital requirement for Foreign banks that want to set up operations in India
is: Ans: Rs. 500 crore
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Minimum capital requirement for new banks in private sector is: Ans: Rs. 500 crore
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Minimum capital requirement for Non-Banking Financial Company (NBFC) is: Ans: Rs.
500 crore
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Minimum limit for medium scale enterprises is Rs. 5Cr. what is maximum limit? Ans:
10 Cr.
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Mobile banking fund transfer limit in a day: Ans: Rs. 50,000
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Mutual funds regulated by: Ans: SEBI (Securities and Exchange Board of India)
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Name the scheme to include every people under banking system: Ans: Financial
Inclusion
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NEFT and RTGS in banking terminology speak of: Ans: electronic fund transfer from
bank to bank
● Pension scheme for unorganized sector:Ans: Swavalamban
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The NBFCs are allowed to accept/renew public deposits for a minimum period of:Ans:
12 months ( and maximum period of 60 months)
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The objective of KYC guidelines is to prevent banks from being used, intentionally or
unintentionally, by criminal elements for money laundering or terrorist financing
activities. What is the full form of KYC? Ans: Know Your Customer (KYC)
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The ownership of public sector banks rests: Ans: jointly with the Government of India
and the shareholders from the public
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The RBI policy rate which is purely an indicative rate used by RBI to signal long – term
outlook on interest rates is: Ans: Bank rate
●The seed capital of Bhartiya Mahila Bank is: Ans: Rs.1000 crore
● The sole authority to issue and manage currency in India: Ans: RBI
●The term ‘pre – shipment’ finance relates to: Ans: export credit
● The term “Smart Money” refers to: Ans: Credits Card
●Treasury bill tenure:Ans: 91 days, 182 days, 364 days
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Treasury Bills and Certificate of Deposit are considered as the ____instruments.Ans:
negotiable money market
●Treasury bills are available for a minimum amount of:Ans: Rs. 25,000
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Under which service, customers may access their bank account and perform basic
transactions from any of the member branch offices. Ans: Core Banking Solution (CBS)
● What does CAR stands for? Ans: Capital Adequacy Ratio
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What is ‘Demat Accounts’? Ans: Accounts in which shares of various companies are
traded in electronic form
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What is Bancassurance? Ans: The selling of life assurance and other insurance products
and services by banking institutions.
● What is full form of CTS? Ans: Cheque Truncation System
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What is Repo rate? Ans: It is the rate is the rate at which RBI lends money to the
commercial banks.
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What is Stale Cheque? Ans: A cheque which is presented to a bank after 3 months from
date of issue is considered as stale cheque and will often not be honored for cash or
deposit at a bank.
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What is Teaser loan? Ans: If a bank offers a slightly lower rate in the initial years and
higher rate in later years, it is called a teaser loan.
●What is the full form of MTSS? Ans: Money Transfer Service scheme
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What is the loan limit for education under priority sector for studies abroad? Ans: Rs. 20
lakh (Loans to individuals for educational purposes including vocational courses upto
Rs.10 lakh for studies in India and Rs. 20 lakh for studies abroad are included under
priority sector.)
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What is the maximum amount per transaction NEFT limit for cash-based remittances to
Nepal? Ans: Rs. 50,000
●What is the minimum amount required to open a Fixed Deposit (FD)? Ans: Rs.1000
● What is the minimum denomination of Treasury bills to issue in India? Ans: Rs. 25000
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What is the minimum paid-up capital requirement of both small banks and payments
banks in India? Ans: Rs. 100 crore