The Wings

THE WINGS
Reading Material for Promotion Examinations
STATE BANK LEARNING CENTRE,

MASULIPATNAM
2012
Date :29.03.2012
Dear Friends,
THE WINGS-2012
A STUDY MATERIAL FOR ALL PROMOTION EXAMINATIONS
I am very happy to bring forth this revised and updated version of THE WINGS-2012 a
compilation of study material for a host of promotion examinations that follows in the next couple of
months.
We are receiving regularly mails and phone calls enquiring when the updated THE WINGS-2012 will
be available. We have originally planned to release the new updated version of THE WINGS-2012 on
19.03.2012 and at the time of uploading the material, news came that the pattern for the TO
examination as well as for JMG is changed drastically, especially for TO examination. There is no
news about change of pattern of examination for Scale II and Scale III examination and TO/PO
confirmation examination as of now. To review the content and incorporate new topics in the back
ground of change in pattern delayed the release of the material. In the revised pattern for TO
examination, certain material like For and Against has become redundant. Even the rationales also
not asked in the question and answer form but the information in the rationale-question as well as
the answer may be useful in some other way in the examination. Similarly, the answers provided in
the practical problems may be of some use while answering the questions on item 2 section I (TO
examination) ie answering the bits relating to practical day-today situations in branches. Hence we
are releasing the updated version of THE WINGS-2012, deleting only For and Against section. We are
sanguine that the material is useful for all the promotion as well as confirmation tests.
Over the last couple of years, THE WINGS & SADHANA SERIES have become very popular among
all the career oriented employees/officials of our Bank. The Wings-2011 & Sadhana Series -2011
evoked tremendous response from the various users and the material became very popular. You can
see the overwhelming appreciations we received for our efforts from THUS THEY SPOKE which is
appended at the end. Our heartfelt thanks to Sri Anupsen for circulating the material to a vast
majority of SBI employees.
Finally, a word of caution to the users of the book. While we have taken every care and precaution in
compiling the material error-free, a few mistakes might have crept in inadvertently.. Neither the Bank
nor the SBLC owns up any responsibility for controversies, if any, in this regard.
With best wishes

P.RAJENDRA PRASAD
Assistant General Manager
STATE BANK LEARNING CENTRE

MASULIPATNAM (MACHILIPATNAM)
KRISHNA DISTRICT
ANDHRA RPADESH
PIN : 521002
TEAM SBLC MASULIPATNAM

S.NO.
NAME
CELL NO.
EMAIL ID
1.
P Rajendra Prasad
Asst. General Manager
9866502240
prajendra.prasad@sbi.co.in
2.
L J Meclarin
Chief Manager (Training)
9000169123
meclarin.l@sbi.co.in
3.
K Ramesh Babu
9959222967
k.rameshbabu@sbi.co.in
4.
T V N B Raju
8008801272
raju.tvnb@sbi.co.in
5.
V Devendra Prasad
Manager (Training)
9959111096
vd.prasad@sbi.co.in
6.
N V R S Subba Rao
Manager (Training)
8008801273
nvrs.subbarao@sbi.co.in
7.
E B Manohar Raj
Manager (Training)
9959111094
manohr.eb@sbi.co.in
8.
G Venkateswara Rao
Manager (Training)
8008801271
gvr.gvr@sbi.co.in
9.
A Srinivasa Rao
Manager (Systems)
9989211097
athmuri.s@sbi.co.in
10.
K V S S Raju
Dy. Manager (Admn.)
9989389685
kosuri.raju@sbi.co.in
11.
A Gitanjali
Senior Assistant
9885498873
gitanjali.ammula@sbi.co.in
Office Phone Nos.

AGM
Office
Fax
IP
EMAIL
:
:
:
:
:
08672-250078
08672-251548
08672-251564
903191
stc.mptm@sbi.co.in
KEY RATES OF RBI AND SBI

SBIS BASE RATE AND SBAR
W.E.F 13.08.2011
BASE RATE CHANGED FROM SBAR CHANGED FROM
-
9.50% TO 10.00%.
14.25% TO 14.75%.
KEY RBI RATES
SLR
CRR
BANK RATE
REPO RATE
REVERSE REPO RATE
SAVINGS BANK RATE
24%
4.75 % (wef 11/3/2012)
9.50%
8.50%
7.50%
4.00%
FOR TRAINEE OFFICER ASPIRANTS

IMPORTANT TIPS FOR ESSAY WRITING
(P.Rajendra Prasad, Assistant General Manager( Trg))
In the revised pattern for Trainee Officer examination, essay writing is introduced as a
new feature. Three topics ( Banking related) will be given and out of which candidates
have to choose and write one essay in not exceeding 250 words and that too in 30
minutes time. The essay carries 20 marks and one has to get a minimum of 10/9 marks
for general and SC/ST candidates respectively to get qualified in that section. Obviously
this section is going to be the decider, whether you get qualified in the TO examination
or not. How well you prepare and how well you score in Section I ie 80% of the marks,
if you fail to get the minimum qualifying mark in section II ie Essay writing section, you
are out from the examination. Therefore, preparing well for writing the essay assumed
greater importance in the revised format. More over the focus would be on your
comprehension skills and communication skills.
What do you understand by Comprehension and communication skills?
Comprehension means basically how well you have understood the topic and
communication means how well you could present your understanding of the topic in the
form of essay.
You might have prepared well for 100 topics but on the day of the examination, it is
always possible that you have to choose an altogether new topic, as the one you have
prepared may not figure out there. Therefore, it is very essential that you must develop
a skill of writing essays instantly, on your own, rather than mugging up from books.
Mugging up also have the danger like not reproducing the key and essential features of
the topic in the examination hall. If you fail to recollect, what you have read, with each
passing minute you will become nervous and ultimately may lead to disaster. The only
and best solution is to develop that art of writing essays. It is not difficult. Here are few
tips:
The first and foremost requirement is that you have to cultivate the habit of
reading and writing. Read English news papers/books/magzines from the angle
of preparing an essay on the topic which you read. Select the topic that appear
in various sections like open Page, editorial Page, Market and Finance, Special
features, opinions etc of various national and economic news papers. Choose the
one which is most apt to you. You will be asked to write essay on banking
related topics. Hence select such topics only. News Papers like The Hindu,
Business Line , The economic Times, Times of India should be read every
day.
Many of us read news papers daily, but very casually, as the news pertaining to
politics, sports, cinema etc does not require serious attention. But educative
news like the one pertaining to countrys economy, finance and banking require
serious reading as you have to understand the underlying issues. You have to
concentrate on these topics from now on.
Concise the reading into a small essay in about 250 to 300 words covering all
important points.
Write them on a paper and prune the essay in such a way that the size does not
exceed 250 words.
Do it like this one topic each day. By the end of two months you will be in a
position to write at least 40- 50 topics.
This exercise will help crystalising your thought process and put such thoughts in
a structured way on the paper in the form of an essay. It also helps writing fast
with neat hand writing. Because, the given time is 30 minutes in which you have
to select, organize your thinking, structure them in a presentable format and
then write with in 250 words.
The experience of reading so many views of the various writers help you
brainstorming on a particular topic and lead to divergent thinking and develop
new capacity of formulating our own views.
These days internet it self is a big source for topics. Browse the internet with the
help of Google search, you can access lot of material relating to Banking related
issues.
THERE IS A BEGINNING AND ENDING FOR EACH ESSAY
Now how to write an essay? Please remember your comprehension and communication
skill is under test now. Any essay must start with a brief introduction and end with brief
summarization. In between the core issues of the selected topic will be there. Directly
entering into the topic with out any brief introduction and withdrawing suddenly with out
proper closure is not the correct way of writing an essay.
First select the topic
Make a brain storming of the topic. While this process is on many ideas will
come into your mind. Please jot them in a rough area
You can spend maximum 10-15 minutes for the entire process of brain storming
and jotting down important points.
Then structure the points in a systematic way ensuring proper flow and linkages
between the points.
Start with brief introduction of the topic
Then put the points, which you have jotted and organized in a systematic way,
one by one
Ensure that all the points you have thought out have come. While writing the
essay you may get one or two points more, which also may be incorporated at
appropriate place
Make a meaningful conclusion of the topic.
Ensure that the 250 words mark is not crossed and able to complete within the
given time.
OTHER IMPORTANT THINGS TO BE FOLLOWED
Your hand writing should be neat, legible and without any cuttings
The language should be simple, lucid; no complex sentences and no jargons.
Please ensure no spelling mistakes and no grammatical mistakes
Important: Using SMS language is a bad idea.
Please remember- Mere good hand writing with out subject will not fetch marks.
Similarly, you have content, but if your script is not readable then also you will loose
marks. Hence practice writing neatly and legibly.
PRACTICE MAKES ONE PERFECT-START PRACTISING WRITING

OF ESSAYS ON YOUR OWN
SOME SUGGESTED TOPICS: Here we suggest few topics on which you may try to
build essay in your own words and understanding :
1.
2.
3.
4.
5.
Priority sector lending,

Financial inclusion,
How technology changed the face of the Banking in India,
Popularisation of alternate channels.
Various measures initiated by RBI for controlling inflation and their impact on
economy,
6. Financing of SHGs by Banks helped poverty alleviation in Rural areas.,
7. BC/BF channel for financial inclusion,
8. Deregulation of interest rate on Saving Bank
9. All RRBs should be merged with their parent Banks
10. SBI- a global Bank in the making
11. Various steps to be initiated for effective tackling of growing NPAs in the Banking
system
12. How cross selling activity helping the Banks in strengthening their bottom lines
13. Micro Finance Institutes-is it a boon or bane for rural poor
14. Customer Delight is the key for any Bank for its progress
15. How prepared the Banks in India for migration to Basel III norms
OBJECTIVE TYPE
QUESTIONSON
GENERAL BANKING,
ASSET/LIABILITY
PRODUCTS,
TECHNOLOGY, GENERAL
AWARENESS &
MISCELLANEOUS TOPICS
(STUDY MATERIAL BASED ON
LATEST INSTRUCTIONS OF THE
BANK / RECENT DEVELOPMENTS IN
BANKING & ECONOMY)
THE WINGS
SBLC, MASULIPATNAM
Bits based on e circulars

Compilation by : P.Rajendra Prasad, AGM (Trg)
(Bits 1 to 28 on circulars of Jan, Feb and up to 10.03.2012)
1.
The facility of back dated interest is stopped for ______

a) Special Term deposit account
b) Term deposit account
c) Recurring deposit account
d) Savings Bank account
2.
RIDF stands for

a) Rural Infrastructure Develop-ment
Fund
c) Rural India Development Fund
b) Rural Industries Development

Fund
d) Rural Industries Development
Forum
3.
MCC issue charges @ Rs.2/_ per leaf is now available to

a) PBBU customers only
b) SME customers only
c) All customers cutting across all
d) Both a & b
Business units/Groups
4.
All short_term crop loans sanctioned / renewed / disbursed during the

financial year 2011-12 up to Rs. ____ lacs per farmer are eligible for interest
subvention
a) Two
b) Three
c) One
d) Five
5.
Additional Interest Subvention of _______will be given to farmers as

incentive for timely repayment of short_term crop loans disbursed in
2011_12
a) 1%
b) 2%
c) 2.50%
d) 3%
6.
In SIMPLIFIED INB ROLE HOLDING MODEL FOR SMALL BRANCHES, the

Administrator / Regulator of CINB accounts would be authorized singly by
the INB Authoriser at the branch, the transaction ceiling amount had been
restricted to Rs.________ lacs
a) 25
b) 50
c) 35
d) 10
7.
The new electronic bill payment facility introduced in SBI internet Banking,
facilitating customers for easy payment of their utility bills, is known as
a) SBI Bill Desk
b) SBI Pay Pal
c) SBI_ InstaPay Service
d) SBI online Bill Payment
Service
8.
In respect of KYC Documents to be submitted at the time of Opening

Savings Bank Account, which of the following serve as proof in both address
as well as identity.
a) Passport alone
b) Voter Identity card alone
c) Pension Payment orders (Govt/
d) All of them
PSUs) alone
1|Page
THE WINGS
SBLC, MASULIPATNAM
9.
As on January 2012, the bank is managing _______ currency chests across

the country
a)
2200
b) 2194
c)
2175
d) 2172
10.
As per extant instructions the processing fee for car loans is @0.50% of the
loan amount subject to a minimum and maximum ceiling of Rs._____ &
Rs.____ respectively
a)
1000,10000
b) 1000,15000
c)
500,10000
d) 500,15000
11.
As per the present guidelines issued by the RBI on New Capital Adequacy
Framework (NCAF) Basel II, the contingent liability on account of Letters of
Credit established on behalf of customers carries a Credit Conversion Factor
(CCF) of _______
a)
20%
b) 30%
c)
50%
d) 100%
12.
In respect of expired Bank Guarantees, the reversal of entries are to be

passed in our books after______ days of expiry of the guarantee / after the
expiry of the claim period, as the case may be
a)
Ten
b) Fifteen
c)
Five
d) seven
13.
The Maximum amount of processing fee for a Home loan is capped at

Rs._____
a)
10000
b) 15000
c)
20000
d) 25000
14.
It has now been decided by the Bank to mandatorily cover all eligible loans
up to Rs.________ under credit guarantee scheme of CGTMSE
a)
25 lacs
b) 50 lacs
c)
One crore
d) 1.50 crore
15.
The guarantee fee and annual service fee payable to CGTMSE will be borne
by :
a)
Borrower only
b) Bank only
c)
Borrower and Bank on 50:50 basis d) Government of India
16.
The Credit Guarantee Trust fund for MSE, known as CGTMSE was set by
Government in association with _______
a)
IDBI
b) IFCI
c)
RBI
d) SIDBI
17.
In Branch Customer Service Committee_____no of representatives from

customers will be taken
a)
Two
b) One
c)
Three
d) No customer representative
in Branch Customer Service
Committee
2|Page
THE WINGS
SBLC, MASULIPATNAM
18.
The service charge payable to a car dealer for the business sourced is
_______% of loan amount
a)
1.50
b) 2.00
c)
2.50
d) 1.75
19.
______is the Principal Agent for Money Gram, a money transfer organisation
of the world
a)
American Express
b) Citi Bank
c)
Thomas Cook India Ltd
d) Western Union Money Transfer
20.
_________is the Nodal Branch for Money Gram business

a)
Hyderabad Main
b) NRI, Kochi, Ernakulam
c)
Mumbai Main
d) Trivandrum
21.
_______is the maximum limit per transaction in Money transfer schemes

operated by Western Union Money Transfer or Money Gram
a)
Us$ 1000
b) Us$ 1500
c)
Us$ 2000
d) Us$ 2500
22.
The maximum amount of finance available to a weaver under Weaver

credit card is Rs.__________
a)
1.00 lac
b) 1.50 lac
c)
2.00 lac
d) 0.50 lac
23.
The weaver credit card is valid for __________years, subject to annual

review
a)
3
b) 2
c)
1
d) 5
24.
Which of the following support would be extended by Government of India

to the eligible borrowers under Weavers credit card scheme
a)
Margin money support up to
b) Interest subsidy up to 3% on
Rs.4200/_ per weaver
Bank loans
c)
Reimbursement of one time
d) All of these or any one of
guarantee fee and annual serthese
vice charges as applicable for a
period up to 3 years payable for
guarantee cover under CGTMSE
25.
For loans above Rs.1 crore sanctioned under SBI Maxgain facility, interest
will be charged at a premium of ______% over and above the applicable
rate for similar amount under term loan
a)
0.50
b) 0.25
c)
0.75
d) nil
26.
For securing Education loan which of the following documents is mandatory

for both the student and parent/guardian
a)
Ration card
b) PAN card
c)
Passport
d) Voter ID
3|Page
THE WINGS
SBLC, MASULIPATNAM
27.
It has been decided to raise the limit for foreign exchange remittance
towards imports without any documentation formalities, from USD 500 or its
equivalent to USD_______ or its equivalent, as a measure of liberalisation
a)
5000
b) 10000
c)
4000
d) 3000
28.
The no of clauses to be certified in BMMC Form_16 now is

a)
33
b) 35
c)
34
d) 36
29.
Recently Bank has introduced a campaign HAMARA BANK: HAMARA POS.

Here POS means
a)
Probationary Officers of the
b) Post Office Savings
Bank
c)
Point of Sales
d) None of the above
30.
Under Vehicle Loan Scheme for customers in CAG and MCG Bus, vehicle
loans will be granted to Corporate Borrowers rated ________ and above
only.
a)
SB 5
b) SB 6
c)
SB 4
d) SB 3
31.
Under Vehicle Loan Scheme for customers in CAG and MCG BUs, maximum
quantity of loan is restricted to ______% of the aggregate (FB+NFB) limits
a)
1
b) 3
c)
2
d) 5
32.
No prepayment penalty will be recovered if a housing loan is closed before

the scheduled repayment period, provided____
a)
If the loan is sanctioned after
b) If the repayment of the loan is
01.05.2011
made from own sources of the
borrower
c)
If the loan is maintained for a
d) No conditions. No prepayment
minimum period of 3 years
penalty is charged for pre
closure of any home loan.
33.
The nodal branch for payment of pension/family pension under Coal Mines
Provident Fund Organisation is________
a)
Patna
b) Dhanbad
c)
New Delhi
d) Jamshedpur
34.
The commission payable on payment of

Coal Mines Provident Fund Organisation
a)
Rs.30
c)
Rs.50
4|Page
each Pension/Family Pension under

is_____
b) Rs.60
d) No commission because of
availability of huge deposits in
the account
THE WINGS
SBLC, MASULIPATNAM
35.
Which of the following item for compensation is removed from the SBI
compensation policy 2011( removed from IBA Model compensation policy)
a)
Compensation on violation of
b) Disputed ATM Transactions
time norms
c)
Collection of cheque drawn on
d) None of these
foreign countries
36.
In the SBI compensation policy 2011, compensation for which of the

following is newly added
a)
Delay in credit of Pension
b) Lenders Liability
c)
Neither a nor b
d) Both a and b
37.
The validity period of a gift card is________

a)
3 years
b) 2 years
c)
1 year
d) No fixed period
38.
Gift card can be issued to

a)
Banks Customers only
c)
Corporate customer only
b) Other than our customer also

d) Both a & b
39.
A Supervising Official will be eligible for a new mobile hand set after a lapse
of ________years from the date of purchase of earlier handset
a)
three
b) two
c)
four
d) five
40.
As per revised norms for Take over of loans, which of the following
condition(s) is to be satisfied for an account to be taken over from other
Banks
a)
The unit should be a Standard
b) The Borrower should be rated
Asset in the books of the
not below SB 6 on the basis of
transferor bank / FI.
the audited Balance Sheet not
older than 12 months
c)
The Units CRA rating must be in d) All of them
consonance with the latest
industry outlook by the CRMD,
wherever applicable.
41.
Which of the following is true in respect of SBI Express World wide, an

online remittance service
a)
It is a Customer Initiated
b) It is meant for individual
Payment (CIP) mode to transfer
remittances only
money to the beneficiary's
account expeditiously
c)
cannot be used for remitting
d) All of them
money to Business/Commercial
accounts
42.
Mission Cyber power is a tie up programme with________

a)
Patny computers
b) HCL computers
c)
PCS computers
d) None of these
5|Page
THE WINGS
SBLC, MASULIPATNAM
43.
Which of the following is not true in respect of SBI Max gain scheme
a)
It is a OD facility
b) Can not be sanctioned to CRE
home loans
c)
Max amount of loan is Rs.1
d) Until full disbursement of the
crore
loan, credits not to be allowed
in the a/c
44.
What is the minimum amount of loan for home loan to businessmen

a)
Rs.25 lacs
b) Rs.15 lacs
c)
Rs.10 lacs
d) Rs.5 lacs
45.
The sanction of home loan will be valid for ___months from the date of
sanction
a)
3
b) 6
c)
9
d) 12
46.
________% of the applicable processing fee would be recovered for each

revalidation of sanction of a home loan.
a)
50
b) 100
c)
nil
d) None of these
47.
It has been made mandatory that whenever any property is taken as

security (primary/ collateral) based on Gift Deed, clearance must be obtained
from the _________without fail.
a)
Person who has gifted the
b) Controlling Authority
property
c)
Law Department of the Bank
d) No clearance needed
48.
Under the revised structure, as per RTI act ________is the CPIO in respect
of Administrative Office
a)
Chief Manager (GB)
b) Senior AGM/RM
c)
DGM (B&O)
d) None of these
49.
The maximum limit of subscription in a year in PPF scheme is_________

a)
100000
b) 70000
c)
75000
d) None of these
50.
Interest Chargeable for loan against PPF balance is _______ per annum
a)
1.00%
b) 1.50%
c)
1.75%
d) 2.00%
51.
Transfer Pricing for Credit products are being linked to

a)
Base Rate
b) Bank Rate
c)
SBAR
d) None of these
52.
The present Transfer Price rate for SB deposits in metro / urban/semi urban
branches is
a)
5%
b) 4%
c)
6%
d) 5.50%
53.
The present Transfer Price rate for SB deposits in rural branches is

a)
6.50%
b) 6%
c)
5.50%
d) 7%
6|Page
THE WINGS
SBLC, MASULIPATNAM
54.
The present Transfer Price rate for CA deposits is

a)
3%
b) 4%
c)
nil
d) 5%
55.
The present Transfer Price rate charged for Cash balance is

a)
4%
b) 5%
c)
6%
d) 5.50%
56.
Which of the following is true in respect of transfer price payable on NPA of

all segments
a)
At SARC & SAMB : 2 % of
b) At Other branches : 4 % of
Balance outstanding
Balance outstanding
c)
a&b
d) Neither a nor b true
57.
In view of the challenges faced by newly opened branches, a concession of

5% Additional CO Interest Receivable & 5% less CO Interest Payable is
allowed at Metro / Urban centre for _________
a)
first 3 years
b) first 2 years
c)
first 4 years
d) first one year only
58.
In view of the challenges faced by newly opened branches, a concession of

5% Additional CO Interest Receivable & 5% less CO Interest Payable is
allowed at at Semi_Urban / Rural centre for ________
a)
first 3 years
b) first 2 years
c)
first 4 years
d) first one year only
59.
Credit information report from two Credit Bureaus is required in respect

of_______
a)
Housing loan with limit > Rs.10
b) Agri seg loan (secured) with
lacs
limit > Rs.3 lacs
c)
Personal loan with limit > Rs.1
d) All of the above
lacs
60.
Which of the following statements is correct with regard to repayment of

loans of an NRI by a close relative of the NRI as per recent RBI guidelines?
a)
Only Home loans of NRIs can be b) Only Home Loans and Car
repaid by a close relative of NRI
Loans NRIs can be repaid by a
close relative of NRI
c)
Any Loan accounts of an NRI
d) The loan amount should be
can be repaid by the resident
repaid by the NRI himself only
close relative of the NRI by
crediting borrowers loan
account through the bank
account of such close relative
61.
Recently RBI has permitted a resident individual to make a rupee gift to a

NRI/PIO who is a close relative of the resident individual within the overall
limit of USD _______ per financial year as permitted under the Liberalised
Remittance Scheme (LRS) for a resident individual.
a)
50,000
b) 100,000
c)
200,000
d) 500,000
7|Page
THE WINGS
62.
SBLC, MASULIPATNAM
While opening bank accounts on the basis of Adhaar Card as officially valid
document under KYC norms, branches have to ensure obtaining of______
additionally.
a)
Current address proof of the
b) PAN Card
customer
c)
Driving Licence
d) No additional document is
necessary
Compiled by Shri L.J.Meclarin & Shri V.Devendra Prasad

63.
How many Demand Loans can be sanctioned against same TDR/STDR within
the overall permissible amount?
a)
One
b) Two
c)
Three
d) Four
64.
In special cases, the AGM/RM can permit ____ loan against the same
TDR/STDR within the overall permissible amount
a)
Second
b) Third
c)
Fourth
d) Fifth
65.
The Bank is providing Accidental Death Cover free of cost up to an amount

of Rs.40 lacs to ____ borrowers
a)
Home Loan
b) Auto Loan( Car/Two Wheeler)
c)
Personal Loan
d) A&B above
66.
The Swarna Dhara campaign has been launched by the Bank to improve :
a)
Personal Segment Gold Loans
b) Agricultural Gold Loans
c)
KCC Loans
d) Produce Marketing Loans
67.
Section 25 of the Payment and Settlement Systems Act, 2007 accords the
same rights and remedies to the payee (beneficiary) against dishonour of
electronic funds transfer instructions (ECS/RECS/NECS) for insufficiency of
funds in the account of the payer (remitter), as are available to the payee
under ________
a) Section 138 of the Negotiable b) Section 10 of the Negotiable
Instruments Act, 1881.
c) Section 126 of the Negotiable
d) Section 8 of the Negotiable
68.
A staff incentive amount of Rs.___ per transaction is paid to operating staff

who is marking of transactions in W.U software.
a) Rs.30/b) Rs.50/c) Rs.100/d) Rs.150/-
69.
Campaign for growth W.U business started from ______ to ______

a) 1.9.20121to 30.11.2011
b) 1.10.2012 to 31.12.2012
c) 1.9.2012 to 31.03.2012
d) 1.10.2012 to 31.03.2012
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70.
it will now be mandatory for all top functionaries at LHO, AO, RBO and BMs
to make themselves available for a minimum of two hours (2.30 pm to 4.30
pm) on the -- and (the following day in case of holiday/ Sunday) of every
month for customers to attend to their grievances and listen to their
suggestions.
a) 10th & 15 th
b) 15th & 20th
c) 10th & 25th
d) 15th & 25th
71.
The top functionaries at LHO,AO,RBO and BMS will make themselves

available to the public for 2 hours on 2 days every month to attend to the
grievances and suggestions of the customers and they have to send a report
on this to their controlling authority within _____days
a) 3
b) 7
c) 10
d) 15
72.
The collated Circle feedbacks will need to be sent to the Corporate Centre
at _____intervals coinciding with the quarterly review of customer
grievances.
a) Fortnightly
b) Monthly
c) Quarterly
d) Half yearly
73.
Which of the following accounts will be eligible for unlimited Multicity

cheques without any charge except for bulk requirement for issue of post
dated cheques to Banks and finance institutions
a) Corporate salary package accounts b) Defence & paramilitary
salary packages
c) Pensioners of defence and
d) All the above
paramilitary Forces
74.
Our arrangement with American Express Bank has been reviewed and
renewed for a further period of _______ till _______
a) 6 months till 31.03.2012
b) one year till August 2012
c) 2 years till 31.03.2012
d) 2 years till 31.08.2012
75.
As per settlement instructions contained in GMU Kolkata, Branches are to

remit the face value of Traveler Cheques sold within _____ days to
respective Banks
a) 5 days
b) 7 days
c) 10 days
d) 15 days
76.
The Bank is eligible for incentive, if the total Sale of FCTCs is more than USD
______ per year.
a) USD10.00
b) USD12.00
c) USD20.00
d) USD25.00
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THE WINGS
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77.
In view of changes in the product features of Gift cards which of the

following statement is correct?
a) The validity period of Gift Cards
b) Gift Cards to be issued only
has been reduced from 3 years to
by debit to full KYC
1 year
compliant accounts
c) To issue Gift Cards only to Banks
d) All the above
customers
78.
Which of the following instructions with regard to conductance of L.C

business is correct?
a) LCs should generally be opened for b) The facility should be for
Banks customers only.
genuine trade/ manufacturing purpose
c) Where the opener and the
d) All the above
beneficiary are associate concerns
or otherwise linked, there should
ordinarily be no need for LCs
79.
Under the MFI lending policy, debt to equity ratio was capped at ______
a) 4:1
b) 5:1
c) 6:1
d) 10:1
80.
While financing for MFI, for new connections and for enhancements the
required CRA should be and above
a) SB-4 & SB-6 respectively
b) SB-5 & SB-8 respectively
c) SB-6 & SB- 8 respectively
d) SB-7 & SB-9 respectively
What is the commission we charge per challan from the remitter for using
Power Jyothi facility ?
a) Rs.50/b) Rs .75/c) Rs.100/d) NIL
81.
82.
83.
Government of India (GOI) has prescribed certain time norms for disposal
of loan applications, as per Citizens Charter. As per these norms which of
the following statement is correct?
a) Applications should be sanctioned
b) Applications should be
by Branches within 30 days in
sanctioned by Regional
NBG/BPR Outfits/RCPC
Office / NBG / NWCC / MCG
Branch level Committee
within45 Days
c) Applications should be sanctioned
d) ALL statements are correct
by MCROs/LHOs/ Corporate
Centres within 90 Days
As per citizen charter and Govt. of India instructions applications/proposals
in the NBG which are to be sanctioned by the CCC I/ CCCII should remain
Pending for more than _______
a) 15 days
b) 1 month
c) 2 Months
d) 3 Months
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THE WINGS
SBLC, MASULIPATNAM
84.
It has been decided to increase the loan

____years in case of increase in interest
a) 2
c) 4
85.
NRIs are now permitted to open a joint account along with their close
relatives. The Mode of operation would be _______
a) Either or Survivor
b) Former or Survivor
c) Joint Account
d)
Later or survivor
86.
To cater to the needs of both the Hajis and other travellers visiting Saudi
Arabia for business or any other purposes, Bank has decided to launch CHIP
based Viswa Yatra Foreign Travel card (VYFTC ) in _____ place
a) Yeman
b) Saudi Arabia
c) Bahrain
d) Saudi Rial
87.
The revised processing and up front charges in Traders Easy loan were
______% Prescribed card rates
a) 10
b) 15
c) 25
d) 50
88.
Which of the following activities are exempted from base rate regime as
provided by RBI?
a) DRI advances, Loans against
b) Staff advances, Export credit
Banks own Term Deposits
where subvention is
available
c) Crop loans upto Rs three lacs for
d) All the above
which subvention is availabl
89.
It has now been decided to raise the maximum loan tenor for new floating
Interest rate Home Loan at origination upto ___years in place of the current
maximum tenor of 25 years subject to the stipulation that loan should be
fully repaid before the borrower attains the age of 70 years. This facility
does not apply to borrowers in Commercial real estate and those engaged
in business
a) 27
b) 30
c) 32
d) 35
90.
Swarna Dhara campain relates to ________

a) Agrl Gold Loans
b)
c) KCC/KGC
d)
91.
tenure manually by a maximum of

rate in floating rate standard assets
b) 3
d) 5
P Segment loans
CASA Deposits mobilisation
PoS ka boss and Card ek, khushiyan anek are special campaigns
launched for
a) Promotion of Credit Cards usage
b) Promotion of Debit Card
for online purchases/PoS
usage at PoS/E-Commerce
purchases
c) Issue of multi-user multi-purpose
d) None of these
cards to promote retail business
11 | P a g e
THE WINGS
92.
SBLC, MASULIPATNAM
The maximum limit for all customers for Multi City Cheque facility is Rs. ___
a) 3 lacs
b) 4 lacs
c) 2 lacs
d) 2.50 lacs
Compiled by Shri G.Venkateswara Rao, Manager (Training)

(Based on circular instructions from May to July, 2011)
93.
Quick mortality means

a)
Old loans becoming NPAs
c)
Agricultural loans becoming

NPAs
b) Just sanctioned loans

becoming NPA
d) All the above
94.
As per banks loan policy guidelines quick mortality is defined as

a)
Advance / loan becoming NPA
b) Advance / loan becoming NPA
within 2 years of sanction.
within 1 years of sanction.
c)
Advance / loan becoming NPA
d) None of the above.
within 6 months of sanction.
95.
CERSAI has been established by Government of India under which act?

a)
SARFAESI ACT
b) COMPANIES ACT
c)
Both the above
96.
The fees payable to CERSAI by banks for each filing is

a)
Rs.50/b) Rs.100/c)
Rs.200/d) Rs.500/-
97.
Interest Rate payable on NRO and NRE SB Accounts is

a)
3.5%
b) 4.0%
c)
A separate interest rate
d) No interest is payable
structure is there in place for
such SB Accounts
98.
For the year 2011-2012, the 1% interest subvention on Housing Loan is

applicable for Houses with an estimated cost of
a)
Rs.10 lakhs
b) Rs.15 lakhs
c)
Rs. 20 lakhs
d) Rs.25 lakhs
99.
Complimentary Lost Card liability in case of Platinum International Debit

Cards is
a)
Rs.5,000/b) Rs.25,000/c)
Rs.50,000/d) Not available
100. Theft & burglary cover under domestic and Gold type of cards is available up
to
a)
Rs.5,000/b) Rs.10,000/c)
Rs.25,000/d) Rs.50,000/101. The PAI (Personal Accident Insurance ) cover under Platinum International
Debit Card is
a)
Rs.200,000/b) Rs.250,000/c)
Rs.500,000/d) No such facility
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102. The insurance Company which takes care of PAI cover of our debit cards is
a)
New India Assurance
b) LIC
c)
SBI Life
d) United India Insurance Co Ltd
103. MBS (Mobile Banking Services) can be availed by
a)
P segment customers alone
b) SME Customers alone
c)
Both the above
d) P segment customers to the
full extent and non- P segment
customers for enquiry rights
only.
104. SBI Krishak Uthaan Yojana is
a)
A financial inclusion product
c)
Scheme for financing oral lesses
b) Scheme for financing tenant

farmers
d) All the above
105. The limit under SBI Krishak Uthaan Yojana is

a)
Rs.50,000/b) Rs.100,000/c)
Rs.500,000/d) None of the above
106. FIC (FINANCIAL INCLUSION CENTER) is primarily meant for
a)
Creating awareness about
b) Supporting Business
financial inclusion
Correspondents
c)
RBI move
d) All the above
107. Grih Santhosh is a
a)
Deposit product
c)
Alternate channel for housing
loan customers
108. Grih Santhosh is targeted at
a)
Housing Loan borrowers
c)
Housing loan borrowers on a

group basis
109. Grih Santhosh is
a)
SB/CA
c)
DL/TL
110. Grih Santhosh is classified as a
a)
P segment product
c)
C&I product
111. Which of the following is true about Grih
a)
The penalty for closure after 14
days and before 6 months is
Rs.1000/c)
In case of SB account, no
penalty even if the debits exceed
30 for half year.
13 | P a g e
b) Housing loan product

d) Insurance cover for housing
loan customers
b) Housing societies and Housing
associations
b) TDR/STDR
d) CC/OD
b) SME Product
d) Small Business product
Santhosh?
b) The penalty for closure after 6
months and before 12 months
is Rs.500/d) All the above
THE WINGS
SBLC, MASULIPATNAM
112. The rate of interest in case of Grih santhosh is

a)
SB rate in case of both SB & CA. b) Nil rate
c)
TDR/STDR rate
d) SB rate in case of SB accounts
and Nil rates in case of CA.
113. Probationary Officers and Trainee officers will be handling cash transactions
directly
a)
During their first year of
b) During the second year of
th
probation from 4 month
probation
onwards
c)
During the later six months of
d) During the first six months of
first year
second year
114. After six months of joining the cash and transfer transaction powers of Pos
and TOs are
a)
Rs.25,000/- and Rs.50,000/b) Rs. 50,000/- and Rs.100,000/c)
Rs.60,000/- and Rs.120,000/d) Rs.100,000/- and Rs.200,000/115. After 3 months of joining the cash and transfer transaction powers of POs
and TOs are
a)
Rs.25,000/- and Rs.50,000/b) Rs. 50,000/- and Rs.100,000/c)
Rs.60,000/- and Rs.120,000/d) Rs.20,000/- and Rs.25,000/116. In case of pensions disbursed to pensioners
a)
Bank to deduct at source
b)
wherever necessary
c)
Bank need not bother about
d)
either of the above issues
117. GLS in our bank refers to
a)
Gold List Services
c)
General List Services
Bank to submit a statement to

IT department
On the basis of Form 15G/H,
they can be exempted.
b) Global link services

118. CDR Mechanism refers to

a)
A form a deposit acceptance
c)
A form debt restructuring
b) A form of corporate deposits

d) A form of opening demat
accounts
119. A SBI Pensioner has to submit life certificate
a)
At any point of time and at any
b) In November and at the Home
Branch of SBI
Branch
c)
At any point of time and at the
d) In November and at any
Home Branch
Branch of SBI.
120. Recently banks were advised to be extra cautious in fulfilling KYC/AML
guidelines for which of the following entities?
a)
NGOs
b) Multilevel Marketing Firms
c)
Limited Liability Partnership
d) All the above
Firms
121. Prizm Payment Services Limited provides SBI technology services related to
a)
ATM gateway
b) RINB merchant billers handling
c)
POS related transactions
d) All the above
14 | P a g e
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SBLC, MASULIPATNAM
122. Merchant Discount Rate (MDR) is the rate at

a)
Inland bills are discounted
b)
c)
Commission is recovered in case d)
of forfeiting
123. Simplified Xpress Credit is available to
a)
Para Military forces covered
under PMSP
c)
State Government Employees
which
Foreign bills are discounted
Commission received in case of
POS.
b) BSNL employees
d) All the above
124. Which of the following is not a feature of SBI Tiny Recurring Deposit
scheme.
a)
All customers are eligible for this b) Tenure is a fixed period of 36
account
months
c)
Mode of operation is single or
d) Initial deposit amount is a
joint.
minimum of Rs.10/125. SBI launched SB-CUM-OD on
a)
RINB channel
b) CBS channel
c)
Kiosk Banking channel
(To know more about the product the readers may refer to Circular
No. RABG/RB-IT-IT/2/2011 12 dated 15.06.2011.)
126. Cash flow is
a)
Equivalent to cash accruals
c)
Equivalent to NWC
b) Different from cash accruals

d) Equivalent to Profit
127. Acknowledgement of MITC (Most Important Terms and Conditions) by

home loan borrowers was recently made mandatory by
a)
RBI
b) BCSBI
c)
Our Banks avowed policy
d) All the above
128. Charges for non-home printing of SB Passbooks is
a)
Rs.10/b) Rs.20/c)
Rs.25/d) Nil charges.
129. In case of foreign currency transactions in Non Profit Organizations, banks
have to submit a monthly report in respect of all transactions
a)
Of Rs.10.00 lakhs or equivalent
b) Of Rs.25.00 lakhs or equivalent
c)
Of Rs.100.00 lakhs or equivalent d) Not required
15 | P a g e
THE WINGS
SBLC, MASULIPATNAM
ANSWERS
1. c
2. a
3. c
4. b
5. d
6. b
7. c
8. a
9. b
10. c
11. a
12. d
13. a
14. c
15. b
16. d
17. a
18. a
19. c
20. b
21. d
22. c
23. a
24. d
25. b
26. b
27. a
28. b
29. c
30. b
31. c
32. d
33. b
34. a
35. a
36. d
37. c
38. a
39. a
40. d
41. d
42. b
43. c
44. a
45. b
46. a
47. c
48. c
49. a
50. d
51. a
52. c
53. a
54. d
55. a
56. c
57. b
58. a
59. d
60. c
61. c
62. a
63. d
64. d
65. d
66. b
67. a
68. a
69. c
70. d
71. a
72. c
73. d
74. b
75. a
76. b
77. a
78. d
79. b
80. c
81. d
82. d
83. d
84. d
85. b
86. d
87. d
88. d
89. b
90. a
91. b
92. c
93. b
94. a
95. c
96. d
97. b
98. d
99. c 100. a
101. c 102. d 103. d 104. d 105. b 106. b 107. a 108. b 109. a 110. b
111. d 112. d 113. a 114. b 115. d 116. a 117. b 118. c 119. d 120. b
121. c 122. d 123. a 124. a 125. c 126. b 127. b 128. d 129. a
Bits from 29 to 50 from e circulars of December and November 2011

For more TP rates please refer to e circular no 657 /2011-12 dt
21.10.2011
The MCQ S from 68-92 were prepared based on E- circulars mentioned
below.
1. Cir. SL.NO. 498/2011-12 DT 2.9.2011
2.
SL.NO. 501/2011-12 DT 3.9.2011
3.
SL NO. 518/2011-12 DT 9.9.2011
4.
SL. NO. 535/2011-12 DT 15.9.2011
5.
SL.NO. 547/2011-12 DT 15.9.2011
6.
SL.NO. 557/2011-12 DT 20.9.2011
7.
SL.NO. 570/2011-12 DT 23.9.2011
8.
SL.NO. 572/2011-12 DT 23.9.2011
9.
Cir.No.NBG/ABU/PDM-AGRI /24/2011 -12 dt. 27.9.2011
10.
Cir.No. CS&NB/CS&NB-DEBITCRD/23/2011- 12 dt. September 27,2011.
11.
Cir.No. NBG/PBU/LIMA-MCC/19/2011- 12 d6t. September 28,2011
16 | P a g e
THE WINGS
SBLC, MASULIPATNAM
SBI CAR LOAN SCHEME (NEW CARS ONLY)

(Prepared by L.J.Meclarin, Chief Manager(Training))
( Vide cir. No. NBG/PBU/AL-CARLOANS/39/2011 12 dated 23.01.2012)
1.
A car loan can be sanctioned under which of the facilities?

a) Term Loan
b) Demand Loan
c) Overdraft
d) Either TL or OD
2. Who of the following are eligible to apply for a car loan?
a) Salaried employees
b) Professionals, self- employed
persons, businessmen
c) Agriculturists
d) All the above
3. Which of the following category of car loan applicant need not submit Income
Tax Return/Form 16?
a) Salaried employees
b) Professionals, self- employed
persons, businessmen
c) Agriculturists
d) All the above
4. The age of a car loan applicant should be between _______
a) 18-60 years
b) 21-60 years
c) 21-65 years
d) 21-70 years
5. A car loan must be fully repaid before the borrower attains the age of :
a) 60 years
b) 65 year
c) 70 years
d) 75 years
6. The minimum Net Annual Income of( salaried) applicant and/or co-applicant if
any, together for car loan should be________
a) 100000
b) 120000
c) 200000
d) 250000
7. In respect of car loan applicants- Professionals, self-employed,
Proprietary/partnership firms, businessmen, the minimum Net Profit/ Gross
Taxable Income per annum as per I T Return after adding back depreciation
and deducting repayments of existing loans should be _____
a) 100000
b) 120000
c) 200000
d) 250000
8. The minimum Net Annual Income of (Agriculturists) applicant and/or coapplicant if any, together for car loan should be________
a) 100000
b) 120000
c) 200000
d) 250000
9. Income from other sources like ______can be added for arriving at minimum
Net Annual Income of a car loan applicant.
a) Bank interest, rents
b) Dividends of listed Companies
c) Agriculture income
d) All the above
10. The Net Annual Income of an agriculturist car loan applicant will be arrived at
based on ------------------a) Nature of activity
b) Land holding & cropping pattern
c) Yield
d) All the above
11. The maximum car loan amount that can be granted to a salaried person is
restricted to ---------------- times of Net Monthly Income
a) 24
b) 30
c) 36
d) 48
17 | P a g e
THE WINGS
SBLC, MASULIPATNAM
12. The maximum car loan amount that can be granted to other than salaried
persons is restricted to ---------------- times of Net Annual Income/Net
Profit/Gross Taxable Income
a) 2
b) 2.50
c) 3
d) 4
13. For a car loan applicant having a Net Annual Income up to Rs.5 lacs, the
EMI/NMI ratio should not exceed_______
a) 50%
b) 60%
c) 70%
d) 75%
14. For a car loan applicant having a Net Annual Income above Rs.5 lacs and up to
Rs.10 lacs, the EMI/NMI ratio should not exceed_______
a) 50%
b) 60%
c) 70%
d) 75%
15. For a car loan applicant having a Net Annual Income above Rs.10 lacs, the
EMI/NMI ratio should not exceed_______
a) 50%
b) 60%
c) 70%
d) 75%
16. The margin for a car loan on On road Price of the vehicle would be _____
a) 5%
b) 10%
c) 15%
d) 25%
17. While considering a car loan, the maximum cost of accessories should not
exceed -------%of the cost of vehicle or Rs.____________whichever is less.
a) 5% or Rs. 25,000/b) 5% or Rs. 30,000/c) 5% or Rs. 50,000/d) 5% or Rs. 75,000/18. What is maximum repayment period allowed for a car loan?
a) 3 years
b) 5 years
c) 7 years
d) 10 years
19. If a car loan is sanctioned as Overdraft account, the differential rate of interest
would be ______
a) 0.50% above the applicable
b) 0.50% below the applicable rate for
rate for TL
TL
c) 1% above the applicable rate
d) Same as the rate applicable to TL
for TL
20. In respect of a car loan, if the irregularity exceeds EMI, for a period of-----------, then the penal interest would be charged @2% p.a. (over and above the
applicable interest rate) on the------------------- for the period of default.
a) One month/ overdue amount
b) 3 months/ overdue amount
c) 3 months/ outstanding amount d) One month/ outstanding amount
21. The processing fee for a car loan is 0.50% of the loan amount subject to a
minimum and maximum of ________
a) Rs.500 & Rs.5000
b) Rs.500 & Rs.10000
c) Rs.1000 & Rs.5000
d) Rs.5000 & Rs.10000
22. If a car application is rejected after pre-sanction survey ------- % of the
Processing Fee will be retained subject to Minimum of Rs. 500/- and maximum
of Rs.2500/-.
a) 25%
b) 50%
c) 60%
d) 75%
18 | P a g e
THE WINGS
SBLC, MASULIPATNAM
23. For car loan applicants other than agriculturists, I T Return/ Form 16 for the
last _______ years should be obtained.
a) One year
b) 2 years
c) 3 years
d) 5 years
24. Takeover of car loans will be considered selectively subject to which of the
following conditions?
a) The vehicle is not more than 2
b) The account of the borrower with
years old, It is a single
the other bank is a Standard Asset
ownership vehicle & no
insurance claim has been
availed
c) The loan should be repaid
d) All the above
within 7 years from the date of
the original purchase of the
vehicle
25. We may also reimburse finance for the cars purchased out of own funds,
which are not more than ------------- old.
a) 3 months
b) 6 months
c) 12 months
d) 24 months
26. Presently the maximum time schedule for receipt of application and
sanction/disbursal of a car loan is days.
a) 2 days
b) 5 days
c) 7 days
d) 15 days
27. What is the pre-payment penalty for a car loan?
a) 1% of outstanding
b) 2% of outstanding
c) 5% of outstanding
d) No penalty
28. For car dealer sales executives, the incentive would be paid at _____ rate for
the loan applications sourced by them.
a) 0.25% of the loan amount
b) 0.50% of the loan amount
(maximum Rs.3000/-)
(maximum Rs.3000/-)
c) 0.25% of the loan amount
d) 0.50% of the loan amount
(maximum Rs.5000/-)
(maximum Rs.10000/-)
29 Who of the following can be appointed as Auto Loan Counselors?
a) Retired SBI Officers
b) SBI Customers and others with
certain qualifications
c) Car Dealers
d) A & b above
30 Auto Loan Counselors will be paid an incentive of _______ of the car loan
amount for the proposal sourced and sanctioned.
a) 0.1%
b) 0.2%
c) 1%
d) 2%
ANSWERS
1.
d 2.
d 3.
11. d 12. d 13. a
4.
5.
C 6.
d 7.
14. b 15. D 16. c
21. b 22. a 23. b 24. d 25. A
26. a
19 | P a g e
d 8.
17. a
d 9.
18. c
27. d 28. a
d 10. d
19. a
20. a
29. d 30. b
THE WINGS
SBLC, MASULIPATNAM
OBJECTIVE TYPE QUESTIONS (BANKING)

(Based on e-Circulars from September, 2010 to December, 2010)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Maximum loan amount that can be sanctioned under Xpress credit scheme is
a 24 NMI, Max Rs.15 lac
b 18 NMI, Max Rs.10 lac
c
24 NMI, Max.Rs.20 lac
d 18 NMI, Max.Rs.18 lac
Maximum repayment period allowed under Xpress credit scheme is
a 48 months
b 72 months
c
60 months
d 54 months
Eligible loan amount under Xpress credit scheme is
a 18 months NMI subject to EMI/NMI not
b 18 months NMI subject to
exceeding 60%
EMI/NMI not exceeding
50%
c
24 months NMI subject to EMI/NMI not
d 24 months NMI subject to
exceeding 60%
EMI/NMI not exceeding
50%
Rate of interest to be charged under Xpress credit scheme, for Category I,
where full check off is available is
a 500 bps above base rate floating
b 550 bps above base rate
floating
c
600 bps above base rate floating
d 700 bps above base rate
floating
Rate of interest to be charged under Xpress credit scheme, for Category II,
where partial check off is available is
floating
c
floating
Rate of interest to be charged under Xpress credit scheme, for Category III,
where no check off is available is
floating
c
floating
Under Xpress credit scheme which authority is vested with powers to extend
category II rate to Category III borrowers only in case of employees of SB1 to
SB5 rated companies who maintain their salary account with us
a Sanctioning Authority
b Controlling Authority
c
GM of the network
d CGM of the circle
Which of the following home loan product is discontinued
a SBI Optima
b SBI Homeline
c
SBI Flexi
d All of them
The maximum amount that can be sanctioned under SBI Maxgain loan scheme
is
a No Upper Cap
b Rs.50 lacs
c
Rs.75 lacs
d Rs.100 lacs
20 | P a g e
THE WINGS
10.
11.
12.
13.
14.
15.
16.
17.
18.
SBLC, MASULIPATNAM
Which Bank is appointed as Nodal bank for administration of interest subsidy

scheme on education loan for economically weaker sections by GOI
a SBI
b Canara Bank
c
IOB
d Indian Bank
Which branch is identified as Nodal branch in respect of education loan for
economically weaker sections for submission of claims under the scheme
a New Delhi Main branch
b Kolkatta Main branch
c
Mumbai main branch
d Chennai Main branch
Under Defence salary package the quantum of interest concession available on
all PER segment loans is
a 25 bps below the card rate
b 50 bps below the card rate
c
75 bps below the card rate
10 bps below the card rate
Group criti9 is the name of a group policy covering 9 critical illnesses
launched by
a Birla sun life
b Life Insurance corporation
c
ICICI prudential life
d SBI Life
Branches are required to advise the details of indirect country risk exposure in
their books to GMU, Kolkatta at------intervals
a Fortnightly
b Monthly
c
Quarterly
d Half yearly
Under Performance & Credit Rating Scheme for Small Scale Industries by
outside agency, the GOI will provide subsidy in getting the units rated up to
the extent of ------a 75% subject to a maximum of Rs.40,
b 50% subject to a
000/- per unit.
maximum of Rs.50, 000/per unit.
c
65% subject to a maximum of Rs.45,
d 75% subject to a
000/- per unit.
maximum of Rs.50, 000/per unit.
At branches of non BPR centre located and not linked to any CPCs, the pre
sanction inspection and post sanction inspection will be conducted by
a By two different officers
b By officials of nearby CPC
c
Branch Manager alone can conduct both
d None of the above
the inspections
What is the Investment limit, for a SSI unit in Plant & Machinery (original cost
excluding land and building etc)to be categorized as Priority sector advance
under SME segment
a up to Rs.10.00 crore
b up to Rs.2.00 crore
c
up to Rs.6.00 crore
d up to Rs.5.00 crore
Under SBF Retail Trading units with credit limits not exceeding Rs.------- will
be treated as Priority sector advance
a 10 lacs
b 15 lacs
c
20 lacs
d 5 lacs
21 | P a g e
THE WINGS
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
SBLC, MASULIPATNAM
What is the Investment limit, for a SBF-service enterprise unit in equipment

(original cost excluding land and building, furniture and fittings)to be
categorized as Priority sector advance under SME segment
a Not exceeding Rs.10.00 crore
b Not exceeding Rs.2.00
crore
c
Not exceeding Rs.6.00 crore
d Not exceeding Rs.5.00
crore
The security deposit for individual Business Correspondents is
a average turnover of 3 days with minimum b average turnover of 2 days
Rs. 0.50 lacs.
with minimum Rs. 0.50
lacs.
c
average turnover of 4 days with minimum d average turnover of 5 days
Rs. 0.50 lacs.
with minimum Rs. 0.50
lacs
The minimum security deposit of Rs.10 lacs to be applicable for Entity BCs
(NGOs, Sec. 25 companies, Societies etc) is
a upto 1000 CSPs.
b upto 2000 CSPs
c
upto 3000 CSPs
d upto 4000 CSPs
A quick loan product in CBS with single Screen for account-opening relates to
a Xpress credit
b SME smart score loan
c
Agri gold loan
d Pension loan
The maximum amount that can be accepted by a BC/CSP under message
based Cell phone channel of technology provider Eko is
a Rs.20000/b Rs.10000/c
Rs.5000/d Rs.15000/The maximum amount that can be accepted in cash for deposit to a
customers account by third party in kiosk banking is
a Rs.20000/b Rs.10000/c
Rs.5000/d Rs.15000/The maximum age limit of the applicant for sanctioning housing loan under
SBI Yuva Home loan scheme is
a 35 years
b 30 years
c
40 years
d 25 years
Bank has decided to stop back dated opening of-----------------account
a Recurring Deposit
b Special Term deposit
c
Senior citizen deposit
d NRE term deposit
In terms of renewal of Banking arrangement with Employees Provident Fund
Organisation, a uniform service charge of Rs.--------per every Rs.1000/- will be
levied irrespective of whether the payment is made at base branch or link
branch
a Rs.2/b Rs.5/c
Rs.2.50
d Rs.3/In respect of frequent dishonour of cheques/ECS mandate, Bank will have the
right to close the account, after serving a notice of 30 days to the customer
after-----occasion of the dishonour of cheque/ECS mandate
a 3rd
b 2nd
c
4th
d 5th
22 | P a g e
THE WINGS
29.
SBLC, MASULIPATNAM
CTS-2010 Standard relates to

a Standardisation of cheques issued by
Banks
c
30.
31.
32.
33.
34.
35.
36.
37.
38.
b Accounting standards to be
followed by all companies
from 01.04.2011
d None of the above
An environment protocol to be followed

by ASEAN countries
In respect of cheque dishonour/return, RBI has recently issued one of the
following instructions
a Branches must indicate date of return on b Branches must advice the
the return memo
collecting bank before
return of the cheque
c
Customer should be put on notice before d None of the above
returning the cheque
The Enhanced cutoff limit for double signature in IOI (Drafts, Bankers Cheque
etc.) is
a Rs1,00,000/b Rs.1,50,000/c
Rs.2,50,000/d Rs.2,00,000/GEN III refers to
a
Gen three Computer system
b A new generation housing
loan scheme for youth by
ICICI Bank
c
A feature in Western Union soft ware.
d New education loan
scheme introduced by
HDFC Bank
Under CIBIL TransUnion scores, a score higher than 800 indicates
a Medium risk
b Low risk
c
High risk
d No risk
Under CIBIL TransUnion scores, a score less than ------ indicates high risk
a 600
b 700
c
500
d 400
Individuals who do not have any loan record in CIBIL database are assigned a
default score of
a 1
b 2
c
-2
d -1
In CIBIL reports a score of --------- is assigned to the individuals with less than
six (6) months of credit history
a 1
b 6
c
0
d -6
Charges levied for transfer of SB or Current account per each occasion is
a NIL
b Rs.100/c
Rs.150/d Rs.50/Service fee for sourcing business to SBI is to be paid at flat ------ of the
sanctioned loan amount to Dealers, Under Certified Pre-Owned Car Loan
Scheme
a 1%
b 2%
c
1.5%
d 0.5%
23 | P a g e
THE WINGS
39.
40.
41.
42.
43.
44.
45.
46.
47.
SBLC, MASULIPATNAM
Service fee for sourcing business to SBI is to be paid to dealers, Under

Certified Pre-Owned Car Loan Scheme, only if the repayment period of the Car
Loan is at least ------- years
a 3
b 4
c
1
d 2
The maximum amount of loan against gold ornaments that can be sanctioned
under personal segment is
a Rs.3 lacs
b Rs.5 lacs
c
Rs.8 lacs
d Rs.10 lacs
Gold loans can be sanctioned against pledge of
a Ornaments only
b Specially minted gold coins
sold by Banks
c
a&b
d None of the above
Maximum periodicity allowed for repayment of gold loans (DL) is
a 36 Months
b 30 Months
c
24 Months
d 48 Months
For approval of specific project of builders under normal route, the
Constitution of the builder should be
a proprietorship concern,
b Partnership firm
c
Pvt/ Pub. Ltd. Company and the key
d All of the above
promoters should be reputed and
experienced in the line of activity.
Prior administrative clearance need to be obtained from---------- for sanction of
loan against Equity Shares by the Branches/Operating Units
a The Deputy General Manager
b GM of the concerned
(compliance)at the Global Markets
network
Department, Corporate Centre, Mumbai
c
MIS dept of LHO of the centre where the d The Deputy General
corporate office of the company against
Manager
whose shares the loan to be sanctioned is
(operations)at the Global
established
Markets Department,
Corporate Centre, Mumbai.
Which department at the Corporate Centre, shall ensure that all investments
made by the Bank are reckoned for the purpose of monitoring computing
Capital Market Exposure in terms of instructions contained in Master Circular
on Exposure Norms of the RBI.
a ALM department
b CPPD
c
BPR IT
d The Global Markets Dept
The collateral security requirement for crop loans revised to the borrowers
with good track record of ------years
a 2
b 3
c
4
d No relaxation permitted
The collateral security requirement for crop loans revised to-----lac to the
borrowers with good track record
a 1
b 3
c
2
d 0.50
24 | P a g e
THE WINGS
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
SBLC, MASULIPATNAM
To enable a unit to get guarantee cover under CGTMSE, which of the following
statement is true
a in case the constitution of the borrower is b Personal guarantee of
proprietary or partnership, the personal
directors, where borrower
guarantee of proprietor / partner is not
constitution is a company
treated as third party guarantee
would be treated as third
party guarantee
c
Both a & b false
d Both a & b true
The maximum coverage available under CGTSME for micro and small
enterprise for other than woman enterprises/units in NE region is
a Rs. 62.50 lacs
b Rs. 65 lacs
Rs. 75 lacs
c
d Rs. 80 lacs
The maximum coverage available under CGTSME for micro and small
enterprise for woman enterprises/units in NE region is
a Rs. 75 lacs
b Rs. 65 lacs
Rs. 85 lacs
c
d Rs. 70 lacs
if at the time of Current Credit Audit, the deficiencies relating to more than
one earlier Credit Audit Reports are pending, a penalty of -------marks for each
report would be imposed.
a 30
b 25
c
20
d 15
The threshold limit for customer transactions under RTGS has been increased
to
a Rs. 3 lacs
b Rs. 2 lacs
Rs. 4 lacs
c
d Rs. 5 lacs
The threshold amount under savings Plus scheme for all salary packages
increased to
a Rs. 15000
b Rs. 10000
Rs. 5000
c
d Rs. 25000
SEBI has recently made some changes in the ASBA where in the retail investor
limit has been raised from Rs. 100,000/- to ----------a Rs. 300,000/b Rs. 200,000/Rs. 150,000/c
d Rs. 500,000/As per the revised RBI policy, the Loan To Value (LTV) ratio for housing loans
upto Rs. 20 lacs for construction linked disbursements for house under
construction as well as house ready for possession is
a 85%
b 90%
c
80%
d 75%
A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) may remit an
amount up to USD------------ per financial year, out of the balances held in his
Non- Resident (Ordinary) Rupee (NRO) account / sale proceeds of assets
a One lakh
b 50000
c
500000
d one million
Citizen of which of the following country is not eligible for remittance of sale
proceeds of immovable property
a Pakistan
b Bangladesh
c
Sri Lanka
d All of them
25 | P a g e
THE WINGS
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
SBLC, MASULIPATNAM
The student NRIs are eligible to receive remittance under liberalized

remittance scheme upto US $
a 100000
b 200000
c
300000
d 400000
The minimum maturity period for a FCNR(B) deposit is
a Six months
b Nine months
c
Twelve months
d No minimum period
Banks can accept FCNR(B) deposits up to a maximum maturity period of -------years
a Five
b Four
c
Three
d Two
The interest on FCNR (B) will be paid on the basis of ------days to a year
a 365
b 366
c
360
d 364
FCNR (B) can not be opened for
a SB
b Current Account
c
RD
d All of them
A written off account will be parked in AUCA only if
a Outstanding in the account being more
b Legal action has been
than Rs. 50000/initiated and/ or some
tangible security is
available and the realizable
value thereof is more than
20% of the outstanding
c
Both a & b
d All written off accounts will
be parked in AUCA
Under Rating Model for Infrastructure Projects (RAMIP), PF1-PF6 rating
indicates the comfort / safety level as
a Strong
b Weak
c
good
d Very strong
Under CRA model, SB 2 indicates the comfort / safety level as
a Highest
b High
c
Adequate
d Absolutely safe
SBI has opened its first FPAS centre at ----------a PBB,Hiranandini, Pune
b Hyderabad Main branch
c
MVP Colony, Visakhapatnam
d SPBB branch,
Thiruvananthapuram
RBI defined Small Account as a savings account in a banking company
wherein i. the aggregate of all credits in a financial year does not
exceed_______; ii. the aggregate of all withdrawals and transfers in a month
does not exceed ____ & iii. the balance at any point of time does not exceed
________.
a Rs 1.50 Lac, Rs 10,000/- and Rs 50,000/- b Rs 1 Lac, Rs 10,000/- and
Rs 50,000/c
Rs 1 Lac, Rs 20,000/- and Rs 50,000/d Rs 1 Lac, Rs 10,000/- and
Rs 1,00,000/-
26 | P a g e
THE WINGS
68.
69.
70.
71.
72.
73.
74.
75.
76.
SBLC, MASULIPATNAM
Locker cannot be opened in the name of _______ neither as a single nor as a

joint account
a Minor
b NRI
c
Blind/ Visually impaired
d None of these
Which of the following organization celebrated Platinum Jublee in the year
2010
a IDBI
b State Bank Staff College
c
RBI
d NABARD
Government of India has last year withdrawn from circulation coins of
denomination of ----------and below
a 25 paise
b 10 paise
c
50 paise
d One rupee
In Ag segment a term loan with or with out creation of movable assets is
collateral free and margin free up to an amount of Rs.---------------a 2 lacs
b One lac
c
50000/d 75000/For loans granted to agri-clinics and agribusiness centres, no collateral and no
margin required up to an amount of Rs.-----------a 3 lacs
b 4 lacs
c
5 lacs
d 2 lacs
Under revised Doctor Plus scheme, the maximum amount of finance that can
be extended to Corporates and partnerships at Metro and Urban centres is Rs.------a 15 crores
b 10 crores
c
5 crores
d 7 crores
Under revised Doctor Plus scheme, the maximum amount of finance that can
be extended to individuals at Metro and Urban centres and for Corporates /
partnerships/individuals at other centres is Rs.-------a 2 crores
b 3 crores
c
5 crores
d 4 crores
In case of branches linked to SMECCC/RASMECC, the request of the customer
for excess drawings depending up on business considerations can be
sanctioned by
a Either the Home branch Head or
b Home Branch Head only
Sanctioning Authority of
SMECCC/RASMECC
c
Sanctioning Authority of
d Controller of the Home
SMECCC/RASMECC only
Branch
Which of the following Apex Training institutes of our Bank is celebrating
Golden Jubilee celebrations
a SBIICM
b SBIRD
c
State Bank Academy
d State Bank Staff College
27 | P a g e
THE WINGS
SBLC, MASULIPATNAM
ANSWERS
1.
11.
21.
31.
41.
51
61
71
a
c
a
b
c
c
c
b
2.
12.
22.
32.
42.
52
62
72
c
b
c
c
b
b
d
c
3.
13.
23.
33.
43.
53
63
73
d
d
b
b
d
a
c
b
4.
14.
24.
34.
44.
54
64
74
a
c
b
a
a
b
a#
c
5.
15.
25.
35.
45.
55
65
75
b
a
a
d
d
b
a&
a
6.
16.
26.
36.
46.
56
66
76
d
a
a
c
c
d
d
d
7.
17.
27.
37.
47.
57
67
c
d
d
b
c
d$
b
8.
18.
28.
38.
48.
58
68
d*
c
c
b
d
b
a
9.
19.
29.
39.
49.
59
69
a
b
a
d
a
c
c
10.
20.
30.
40.
50.
60
70
Qn: 8 : * SBI Freedom is also withdrawn

Qn: 57: $ The facility is also not available to citizens of China, Afghanistan, Iran,
Nepal and Bhutan.
Qn: 64 : # PF7-PF10-good,PF11-PF13-Satisfactory,PF14-PF15- weak, PF16-Default
Qn.65 : & SB1 -Virtually Absolute Safety, SB2 Highest Safety: SB3 Higher Safety,
SB4 - High Safety, SB5 Adequately safety, SB6 - Moderate Safety.
28 | P a g e
b
c
a
d
b
a
a
THE WINGS
SBLC, MASULIPATNAM
Please choose correct answer from the given alternatives.

Indian Financial System
[Compiled by Team SBLC & updated by Shri K.Ramesh Babu, Chief Manager]
1.
Which one of the following is not addressed by Structural Adjustment

Programme implemented by Govt of India from 1991.
a) Trade Policy
b) Industrial Policy
c) Fiscal Policy
d) Direct Tax Policy
2.
Which one of the following is not a regulatory body?

a) RBI
b) SEBI
c) ICRISAT
d) IRDA
3.
Which one of the following is not the Financial Market segment?

a) Capital Market
b) Money Market
c) Forex Market
d) Bullion Market
4.
Which one of the following is treated as Capital Market Borrowing?

a) Debenture
b) TDR Bond
c) Tax Saving Deposits of the Bank
d) NSC/KVP
5.
Which one of the following is the regulator for Capital Markets in India?
a) RBI
b) SEBI
c) NSDL
d) CDSL
6.
Which is the first Mutual Fund organization formed in public sector in India?
a) UTI MF
b) SBI MF
c) CANFIN
d) PNBMF
7.
NSE is established under the recommendations of __________ committee?

a) Bhave Committee
b) Rangarajan Committee
c) Pherwani Committee
d) Ojha Committee
8.
NSE Head quarters is at

a) Kolkata
c) Mumbai
b) Chennai
d) New Delhi
9.
Which one of the following is not the promoter for OTCEI?

a) UTI
b) IFCI
c) LIC
d) IDBI
10.
Money Market consists of

a) Commercial Banks
c) Primary Dealers
b) Co op banks
d) All of the above
11.
Minimum size of transaction in case of Money Market is

a) Rs 3.00 Cr
b) Rs 4.00 Cr
c) Rs 1.00 Cr
d) Rs 1000 Lakhs.
12.
Which committee has recommended that call markets should be restricted to

banks?
a) Bhave Committee
b) Rangarajan Committee
c) Vaghul Committee
d) Ojha Committee
29 | P a g e
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SBLC, MASULIPATNAM
13.
Which one of the following is not classified as Money Market arm

a) Call Money Market
b) Notice Money Market
c) Term Money Market
d) Stock Market
14.
What is the maximum period for money lent in Notice Money Market is
a) 1-day
b) 14-days
c) 1-month
d) 91 days
15.
What is the maximum period for which the funds are lent in Money Market?
a) 14-days
b) 1-month
c) 7-days
d) 1-year
16.
Which one of the following is not the Money Market instrument?

a) Treasury Bill
b) Certificate of Deposit
c) Commercial Paper
d) Debenture Certificate
17.
Up to what amount banks can borrow from Money Market?

a) 125% of its Capital Funds
b) 125% of its Tier l Capital Funds
c) 125% of its Tier II Capital Funds
d) 100% of its Capital Funds
18.
What is the daily limit of borrowing for banks from Money Market?
a) 10% of its Capital Funds
b) 25% of its Capital Funds
c) 50% of its Capital Funds
d) 100% of its Capital Funds
19.
Money Market deals are to be reported with in 15 minutes over

a) NSE
b) NDS(Negotiated Dealing System)
c) OTCEI
d) RTGS
20.
Treasury Bills are issued by

a) SBI
c) PSU Banks
b) RBI
d) SEBI
RBI issues T-Bills for the period(s) of

a) 91 Days
c) 364 Days
b) 182 Days
d) All of the above
21.
22.
Which one of the following is not eligible for issuing Certificate of Deposit?
a) SCBs
b) IDBI
c) IFCI
d) RRBs
23.
Certificate of Deposits are shown as

a) Tier-1 Capital
c) Deposits
b) Tier-2 Capital
d) Contingent Liabilities
24.
CDs are issued for a period of _____ days

a) 7 days to 1 year
b) 14 days to 1 year
c) 365 days
d) 182 days
25.
Rate of interest payable on CD is determined by

a) RBI
b) Market Determined
c) Govt of India
d) Issuing entity
26.
Loan cannot be granted on one of the following

a) Bank Deposit
b) Gold Bar
c) Certificate of Deposit
d) Demat Shares
30 | P a g e
THE WINGS
SBLC, MASULIPATNAM
27.
Commercial Paper can be issued for a period of

a) 7 days to 1 year
b) 14 days
c) 365 days
d) 92 days, 182 days and 365 days
28.
Commercial Paper is a type of

a) Demand Promissory Note
c) Term Deposit
b) Usance Promissory Note

d) Corporate Bond
29.
Minimum amount for which Commercial Paper Can be issued is

a) Rs 1 Lakh
b) Rs 2 Lakh
c) Rs 3 Lakhs
d) Rs 5 Lakhs
30.
Minimum amount for which Certificate of Deposit Can be issued is

a) Rs 1 Lakh
b) Rs 2 Lakh
c) Rs 3 Lakhs
d) Rs 5 Lakhs
31.
What will be the lock in period for Commercial Paper and Certificate of Deposit?
a) 3 Years
b) No lock in period.
c) 14 Days
d) 1 Year
32.
Who is the chief promoter of Clearing Corporation of India (CCIL)

a) RBI
b) OTCEI
c) SBI
d) NABARD
33.
Which of the following is Indian credit Rating Agency?

a) ICRA
b) Fitch(India) Ratings
c) Duff and Phelps
d) All of the above
34.
CRISIL is promoted by
a) ICICI
c) a and b
b) UTI
d) SBI
35.
Which of the following is not an Indian Credit Rating Agency?

a) Standard & Poor
b) Fitch(India) Ratings
c) Duff and Phelps
d) CARE
36.
Which of the following is the parent organization for Mutual Funds in India?
a) NABARD
b) AMFI
c) SEBI
d) SBI Mutual Fund
37.
Performance of Mutual Funds will be assessed based on its

a) NAV
b) Offer Rate
c) Market Rate
d) Future Rate
38.
What is the over all cap on investment overseas by Indian Mutual Funds?
a) USD 1 Billion
b) USD 2 Billion
c) USD 10 Billion
d) USD 7 Billion
39.
MMMFs can invest in Money Market Instruments up to the maturity period of

a) One year
b) One month
c) 45 days
d) Three years
40.
Minimum amount of investment in case of MMMF by Individual is

a) Rs 50000/b) Rs 25000/c) Rs 100000/d) Rs 10000/31 | P a g e
THE WINGS
SBLC, MASULIPATNAM
41.
Funds invested in Mutual Funds are managed by

a) Mutual Fund Company
b) Funds Manager
c) AMC
d) ALM Team
42.
Merchant Bankers are governed by

a) SEBI
c) NSE
b) Parent Bank
d) Lead Manager
43.
The process of demand and price discovery through marketing feed back is
a) IPO
b) Public Issue
c) NFO
d) Book Building
44.
DFHI (Discount and Finance House of India) is a subsidiary of

a) IFCI
b) SBI
c) IDBI
d) BSE
45.
The process of converting an asset in the form of a debt in to negotiable

security is called
a) Securitization
b) Forfeiting
c) SPV
d) Tranformation
46.
SPV in securitization stands for

a) Special Pool Value
c) Secret Password Verification
b) Special Physical Valuation

d) Special Purpose Vehicle
47.
The process in which RBI lends to and borrow from the banks is known as
a) SPV(Special Purpose Vehicle)
b) Buy & Lend Policy.
c) LAF(Liquidity Adjustment Facility) d) Market Activity
48.
What is the rate at which banks lend their surplus funds to RBI?
a) Repo
b) Reverse Repo
c) Bank rate
d) Forward Rate
49.
What is the rate at which RBI buys securities from banks?

a) Repo
b) Reverse Repo
c) Bank rate
d) Forward Rate
50.
Conversion of Depository Receipt in to the under laying share is known as

a) Conversion
b) Swap
c) Fungibility
d) Freezing
ANSWERS
1.
d 2.
11. a 12. c
3.
d 4.
41. c
b 6.
a 7.
8.
13. d 14. b 15. d 16. d 17. a 18. c
21. d 22. d 23. c

31. b 32. c
a 5.
24. a 25. b 26. c
33. d 34. c
9.
d 10. d
19. b 20. b
27. a 28. b 29. d 30. a
35. a 36. b 37. a 38. d 39. a 40. b
42. a 43. d 44. b 45. a 46. d 47. c
32 | P a g e
48. b 49. a 50. c
THE WINGS
SBLC, MASULIPATNAM
BPR & ORGANISATIONAL STRUCTURE

(Prepared by Shri G.V.Rao, Manager (Trg))
1.
As per the BPR project, RBOs are expected to function as

A Independent accounting units
B Independent functioning but part
of Admn Unit for accounting
purpose
C Independent accounting unit but
D None of the above.
without budgetary responsibility
2.
As per BPR project, RBOs

A Should have access to CBS and
VVRs to be generated and
checked
C Transactions are routed through
Admn Unit
Should have access to CBS but no

VVRs
None of the above
3.
Which of the following is not a BPR initiative?

A RMPB
B Grahak Mitra
C RCPC
D IBCH
4.
Which is Module-17 of BPR project?

A CPPC
C LCPC
5.
The main purpose of DAC is

A To centralize record storage
system
C To free valuable space for
Branches to be used for customer
service area.
B
D
DAC
CAC
Easy access to Branches
All the above
6.
Which of the following is true regarding DAC operational area?

A It covers all Branches only
B It covers Branches as well as CPCs
C It covers Branches as well as
D None of the above is correct
CPCs, but loan documents will not
be covered.
7.
Which of the following is true regarding DAC?

A First DAC is opened at
B DACs do not deal in soft copies.
Bhubaneswar
C DACs work on a workflow
software on SBI Connect.
8.
Head of DAC should be reporting to

A The Regional Manager where the
DAC is located
C DGM (B&O)
9.
B
D
To all AGMs of all Regions and

heads of CPCs
BPR Cell at LHO
The TAT for retrieval of normal and urgent documents by DAC is

A 3 days & 18 hours
B 3 days & 5 hours
C 3 days & 3 hours
D None of the above
33 | P a g e
THE WINGS
10.
11.
The DAC is bifurcated into

A Management unit & archival unit
C Collection unit & storage unit
13.
B
D
Sales forces conceived in BPR project are

A Two types- customer focused and B
product focused
C
12.
SBLC, MASULIPATNAM
Only on type-customer focused
RMPB focuses
A P segment business in general
C Marketing of new P segment
asset products alone
Three types- customer focused,

product focused and segment
focused
None of the above
B
D
HNIs in particular
none
HNI covered by RMPB id defined by

A Deposits/investments> Rs.5 lacs
HL>Rs.15 lacs(urban)/Rs.6 lacs

(other places)
Annual income>Rs.3.40 lacs and
depsoits/investments > Rs.2 lacs
car loan > Rs.3lacs

14.
15.
16.
A branch in BPR set up is called

A BPR Branch
C SCB
B
D
Who is a MANAGER(BO) in a BPR Branch?

A Accountant
B
C CRO
D
SSB
Branch only
Branch Manager
RMPB
Which of the following matching is correct?

A
17
Retrieval unit & archival unit

The DAC functions as a single
entity
Super affluent- >50 lacs

Affluent 12-50 lacs
Mass affluent 2-12 lacs
Affluent 12-25 lacs

Affluent 10-60 lacs
Mass affluent 2-10lacs
Affluent 10-50 lacs
Who will be looking after administrative matters in SSB under BPR set up?
A Manager (BO) under the overall
B Manager (BO) directly reporting to
supervision of BM
CM(Admn) of the RBO
C
BM directly
Both Manager(BO) & BM in

consultation
18.
In SSB, the budgets are the responsibility of

A BM,CRO & Manager(BO)
B BM alone
C BM will be sharing with CRO &
D None of the above combinations
sales team
19.
The reporting relationship of BM of SBB is with

A DGM (B&O) of the A.O.
B Regional Manager
C Both the above
D None of these
34 | P a g e
THE WINGS
20.
21.
SBLC, MASULIPATNAM
The SWOs in SSB will be reporting to

A Branch Manager
B Cash Officer
C Case Manager
D Manager(BO)
What is the stipulated customer space in SSB as per BPR design?
A 7:3 to 15:5 to staff space
B 7:2 to staff space
C 15:5 to 17:4 to staff space
D No stipulated space
22.
Which of the following is true regarding BMs cabin in SSB?

A It should be located centrally.
B At least three walls should be of
glass.
C The cabin should have a
D None of the above
minimum space of 150 Sq.ft
23.
The banking hall of a SSB is to be preferably organized into

A Three sections-welcome, service
B Two sections- welcome and sales
and sales section
sections
C No sections
D Only one section-welcome section
and the remaining Branch will
perform all other functions.
24.
As per BPR policy, Quick Management System (QMS) should be installed at

A All BPR branches
B BPR Branches with high footfalls.
C BPR Branches identified by BPR
D No QMS is stipulated.
Department
25.
RMPBs can be posted for SSB Branches, where

A The number of HNI accounts is
B The number of HNI accounts is
between 200-250
between 150-200
C Minimum 100 HNI accounts
D No such stipulation & depends on
Branch potential.
The purpose behind establishing IRC is
26.
27.
28.
To reduce processing costs.
To allot skilled man power for

processing
To ensure faster credit to

beneficiarys accounts.
All the above.
The number of IRCs (Inward Remittance Cell) in the country are

A
Only two
14 at all LHOs
4 at Delhi, Chennai, Calcutta and

Mumabi
Only one.
IRC is meant to deal with

A
Any remittance received through

SWIFT
Non-INR remittance received

through SWIFT
Non-INR remittances received

from abroad either through
SWIFT or any other mechanism.
None of the above.
35 | P a g e
THE WINGS
29.
30.
31.
32.
33.
34.
SBLC, MASULIPATNAM
IRC does automatic conversion of foreign remittances up to

A
USD 5000 or equivalent
USD 20000 or its equivalent
Which of the following is true regarding IRC?

A
IRC is an IBG outfit.
IRC will be reporting to GMU-K for

administrative purpose
IRC will reporting to GLS(Global

link services), IBG for
performance purpose.
All the above
The TAT stipulated for IRC to credit funds to customers accounts is

A
6 hours
2 hours
3 hours
1 day
The Manager, CAC is having reporting relationship with

A
AGM, FSLO
DGM (B&O)
Regional Manager of the Region

in which the CAC is located
None of the above
Which of the following roles is not stipulated by BPR manual for CAC?
A
Mobile messengers
Deputy Manager(transportation)
Deputy manager (Maintenance)
Mobile Cashiers
Trade Finance Central Processing Center deals with

A
LC, BG and bills business
Bills business only
LC & BG business only
Import and export business activity
ANSWERS
1. a
2. A
3. C
4. B
5. C
6. B
7. C
8. C
9. B
10. A
11. A
12. B
13. A
14. B
15. A
16. A
17. A
18. C
19. B
20. D
21. A
22.D
23. A
24. B
25. A
26. C
27. D
28. A
29. A
30. D
31. C
32.B
33. C
34. A
Clues to answers:-
21. The BMs cabin should be located adjacent to the banking hall. It should have at
least one glass wall. It should have a space of 100-150 sq.ft
24. As per BPR definition, both super affluent and affluent customers constitute HNI
segment.
36 | P a g e
THE WINGS
SBLC, MASULIPATNAM
Organization and Business

[Compiled by Team SBLC & updated by Shri K.Ramesh Babu, Chief Manager]
1.
Grahak Miitra is positioned in________ area of the Branch.

a) Customer Area
b) Cash Department
c) Employee Area
d) SWO counter
2.
How many components that a Drop Box will contain

a) One
b) Two
c) Three
d) Four
3.
For which of the following Drop Box is not used

a) On Bank Cheques.
b) Local other bank cheques.
c) Non Local Cheques.
d) Credit Card Payments.
4.
Team for marketing Small Enterprises and Retail products is known as

a) HLST
b) MPST
c) CPPC
d) TFCPC
5.
ALM stands for?

a) Asset Liability Management
c) Asset Liquidity Management
6.
7.
WBCC stands for?

a) West Bengal Circle Credit
Committee
c) Wholesale Banking Credit
Committee.
WBCC will be at ________
a) Corporate Centre
c) LHO
b) Asset Life Management

d) Accrued Loss Management
b) World Bank Credit Committee
d) Web Banking Circle Committee
b) Zonal Office
d) CAG Branches
8.
In charge of IT at the Corporate Centre is________

a) CGM (IT)
b) GM (IT)
c) DGM (IT)
d) DMD (IT)
9.
Which of the following is not a profitability ratio?

a) CARR
b) ROE
c) GRR
d) ROA
10.
SBI's Corporate Centre is located at ______

a) Kolkata
b) Chennai
c) Mumbai
d) Bangalore
11.
Mid Corporate is a unit with annual turn over between _______

a) Rs 100 to Rs 500 Crores
b) Rs 50 to Rs 500 Crores
c) Rs 5 to Rs 50 Crores
d) Rs 10 to Rs 50 Crores
12.
Which one of the following is not the category of the branch classified under
Ambience Policy?
a) Platinum
b) Silver
c) Copper
d) Bronze
37 | P a g e
THE WINGS
SBLC, MASULIPATNAM
13.
SBI Custodial Services Pvt Ltd is established in collaboration with______

a) Society General, France
b) Banca America
c) FNS, Australia
d) Mc Kensy
14.
State Bank FreedoM is the name of

a) MBS
c) RING
b) ATM
d) CINB
15.
Which is the minimum rate at which the bank has to fianace?

a) SBAR
b) Base Rate
c) Basic Rate
d) MTLR
16.
Banks customer contact centre is not located in _________

a) Bangalore
b) Hyderabad
c) Kolkata
d) Mumbai
17.
Which of the following Associate Bank is recently merged with SBI?

a) SBH
b) SBBJ
c) SBM
d) State Bank of Indore
18.
What is the name of countrys first state of art Cash Administration Branch
established by our Bank?
a) Cash Factory
b) CAC
c) Dhanlaxmi
d) Cash Sort
ANSWERS
1.
a 2.
11. b 12. c
3.
d 4.
b 5.
6.
13. a 14. a 15. b 16. c
38 | P a g e
7.
a 8.
d 9.
17. d 18. a
a 10. c
THE WINGS
SBLC, MASULIPATNAM
Technology (Compiled by Team SBLC, Masulipatnam)

1.
SBI installed first ATM at___________ in___________.

a) Jamshedpur, 1993
b) Mumbai, 1992
c) Kolkata, 1988
d) Chennai, 1987
2.
Clearing of cheques on the basis of electronic image is called_____.

a) e-Clearing
b) Cheque Truncation
c) e-Recon
d) None of these
3.
DRP & BCP to be prepared in _________ of the year

a) 1st April
b) First week of June
c) 1st March
d) First week of January
4.
Software used to for retrieval of signatures of customers and officials in CBS.

a) Doscis
b) Cispro
c) Signtrieve
d) Signscan
5.
A plastic card implanted with a computer chip is called________

a) ATM Card
b) Smart Card
c) Debit Card
d) Memory Card
6.
Headquarters of SWIFT is located at_________

a) Meerut
b) Hongkong
c) Geneva
d) Brussels (La Hulpe)
7.
Daily limit of transactions under C2C in ATM is_________

a) Rs40000/b) Rs50000/c) Rs100000/d) Rs10000/-
8.
Finacle software is developed by _________

a) Infosys
b) Satyam Computers
c) Wipro
d) Emphasys
9.
State Bank Freedom is____________

a) Home Loan Product
c) Mobile Banking Service
b)
d)
Personal Loan Product

Debit Card
10.
Confidentiality of sensitive information maintained through ________

technology which involves converting the data into ciphertext that is not
intelligible.
a) Encryption
b) Decryption
c) Transcription
d) Transmission
11.
Which one of the following is B@ncs24 provider

a) TCS Ltd
b) Datacraft
c) FNS, Australia
d) Infosys
12.
Who maintains State Bank Connect?

a) Datacraft
c) Cisnet
b)
d)
Bankline
Pragmasys
Pentium is _____________ ?
a) A Microprocessor chip
c) A printer model
b)
d)
A Laptop model
A new internet modem
13.
39 | P a g e
THE WINGS
SBLC, MASULIPATNAM
14.
Computer security day is observed every year on _________ ?

a) 30th October
b) 30th November
th
c) 30 December
d) 30th January
15.
The integration of Depository Participant and Stock Exchange interphase is

called?
a) e-Marketing
b) e-lenor
c) e-Broking
d) e-Inrephase.
16.
B2C in internet business is the acronym of

a) Business to Consumer
b)
c) Business to Correspondent
d)
Business to Customer
Business to Company.
IDRBT is located at __________

a) Mumbai
c) Bangalore
b)
d)
Hyderabad
Kolkata
ISDN stands for ____________

a) Integrated Service Digital Network
c) Indian Satellite Direct Network
b)
d)
Inter Satellite Digital Network

None of these
PIN of ATM is known as

a) Postal Index Number
c) Personal Independent Number
b)
d)
Personal Index Numerator

Personal Identification Number
17.
18.
19.
20.
STP in Foreign Remittances is the acronym of_______

a) Straight Through Processing
b) Standard Type Protocol.
c) Stereo Typed Processing
d) Straight Transfer Payment
21.
The Web Security Solution being selected by the Bank and deployed at GITC,
Belapur and CtrlS Datacentre, Hyderabad to have gateway protection (from
15.12.2011) is from _______
a) Symantec
b) Mc Afee
c) AVG
d) Trend Micro
22.
WAP stands for____

a) Wide Area Program
c) Web Application Project
b)
d)
Wireless Application Protocol

Wide Application Program
What is known by Hot listing?

a) Lasting at Hot temparature
c) Stopping Operations of the Card
b)
d)
Sudden Listing in Stock Market

None of these
23.
24.
Software used for ALM at Corporate Centre is _______

a) AssetL
b) Oracle
c) Dhanavyaya
d) OFSA
25.
Another name for SBI ATM cum Debit Card

a) Anywhere Cash
b)
c) Any Time Cash
d)
26.
SBI Cash Plus

Alternate Time Machine
Branches are interlinked in CBS through________

a) WAN
b) State Bank Connect
c) B@ncs 24
d) LAN
40 | P a g e
THE WINGS
27.
28.
29.
SBLC, MASULIPATNAM
Software used in RACPC is

a) Kubera
c) OFSA
b)
d)
Dreamhome
Sinc
Software used in CAC is

a) Kubera
c) OFSA
b)
d)
Dreamhouse
Sinc
Unsolicited emails are known as :

a) Virus
c) Trojan Horse
b)
d)
Spam
Spyware
30.
Passing Power of SWO (Senior Assistant) in case of payments in cash is

a) Rs 50000/b) Rs 100000/c) Rs 400000/d) Rs 300000/-
31.
The following is established to provide connectivity among net worked ATMs

a) Banknet
b) NFS(National Financial Switch)
c) Debit Connect
d) Cord
32.
Minimum amount of remittance in RTGS is

a) Rs 10000/b)
c) Rs 100000/d)
Rs 200000/Rs 25000/-
ATM Card is a type of

a) Debit Card
c) Combo Card
Credit Card
Multi purpose card
33.
b)
d)
34.
The out station cheques through Cheque Truncation will be cleared on -----basis
a) T+2 days
b) T+3days
c) T+1day
d) T+0 days
35.
The following type of card allows both off line and online transactions
a) Debit Card
b) Deferred Debit card
c) Combo Card
d) Credit card
36.
The following will emerge greater importance in case of disaster in

computerized branches
a) DRP
b) BCP
c) DRP& BCP
d) AMC
37.
What is maximum amount of remittance accepted through NEFT?

a) Any Amount
b) Rs 100000/c) Rs 10000/d) Rs 1000/-
38.
Buying and selling of goods through internet is known as

a) e-Deals
b) e-Commerce
c) e-Transact
d) e-Market
39.
WWW is abbreviation of
a) Wild World Work
c) Whole White World
b)
d)
41 | P a g e
World Wide Web

None of these
THE WINGS
40.
41.
42.
SBLC, MASULIPATNAM
INFINET is a
a) VSAT Network
c) LAN network
b)
d)
Internet
WAN Network
VSAT is the abbreviation of

a) Very Speed ATm
c) Very Small Aperture Terminal
b)
d)
Very Soft Adjusting Tool

None of these
SBI Debit Card carries

a) Maestro Logo
c) Lehman logo
b)
d)
VISA Logo
World Bank logo
43.
How many withdrawals are allowed free to a State Bank ATM Card holder at
other bank ATMs?
a) One in a month
b) Five in a week
c) Any number
d) Five in a month
44.
Maximum amt that can be withdrawn by ATM Card holder at other bank ATMs is
a) Rs 40000/b) Rs 10000/c) Rs 50000/d) No limit
45.
Which one of the following is the dedicated customer redressal mechanism for
ATM Complaints?
a) BCSBI
b) Lok Adalat
c) COPRA
d) CMS
46.
Daily Cash withdrawal limits of Gold Card( Visa) and Gold(Master) Card is
a) Rs 50000/- for both
b) Rs 40000/- & Rs 50000/c) Rs 50000/- & Rs 40000/d) Rs 40000/ for both
47.
ATM Card designed for youth is

a) Tean Card
c) Yuva Card
b)
d)
Smart Guy
Gold Card
48.
Software used by our bank abroad branches is

a) B@ncs24
b) Finacle
c) Finance one
d) Dream house
49.
Daily Transaction limit in case of Mobile Banking Service(Application Based) is

a) Rs 50000/b) Rs 1000/c) Rs 5000/d) Rs 250000/-
50.
Daily Transaction limit in case of Mobile Banking Service(USSD) is

a) Rs 50000/b) Rs 1000/c) Rs 5000/d) Rs 250000/ANSWERS
1.
11.
21.
31.
41.
a
c
b
b
c
2.
12.
22.
32.
42.
b
a
b
b
a
3.
13.
23.
33.
43.
d
a
c
a
d
4.
14.
24.
34.
44.
c
b
d
d
b
5.
15.
25.
35.
45.
b
c
b
b
d
6.
16.
26.
36.
46.
42 | P a g e
d
a
c
c
a
7.
17.
27.
37.
47.
b
b
b
a
c
8.
18.
28.
38.
48.
a
a
a
b
b
9.
19.
29.
39.
49.
c
d
b
b
a
10.
20.
30.
40.
50.
a
a
a
a
b
THE WINGS
SBLC, MASULIPATNAM
Legal aspects (Compiled by Shri G.Venkateswara Rao)

1.
The five new professions approved by Ministry of Corporate affairs as eligible to

form LLP (Limited liability partnerships) are
a) Engineers, lawyers, educationists, b) Engineers, lawyers, architects,
financial consultants & physicians.
c) Engineers, lawyers, architects,
d) Engineers, lawyers, architects,
financial consultants and Actuary
2.
An account holder is found guilty of criminal charges and convicted. The

operations in his account
a) Are temporarily put under hold.
b) Referred to the police authorities.
c) Advise customer to close his a/c.
d) Transactions to be continued.
3.
Banking ombudsman cant reject complaints in case of

a) Customer approaching ombudsb) Complaints relating to non sanction
man after approaching bank for
of loans.
genuine grievance relating to
deficiency of service relating to
deposit product.
c) Frivolous complaints in nature.
d) Case pending in a court of law in
respect of settlement of a deposit.
4.
A contract of insurance is a
a) Contract of security
c) Contract of indemnity
b) Contract of guarantee.
5.
Under law of limitation, the liability of a guarantor is

a) 3 years from the dt. of document. b) 3 years from the date of advance.
c) 3 years from the dt. of invocation d) None of the above.
6.
Lien becomes time barred after 3 years

a) From the date of loan
b) Date of delivery of relative goods.
c) Due date of loan.
d) Lien has no limitation period.
7.
Negative lien means

a) A declaration by company not to
encumber assets of company
without prior consent of banker.
c) A lien letter executed by a
company authorizing the bank to
mark lien on its FDR receipt.
8.
Letter of probate means

a) A letter attached with a will
containing signatures of
witnesses.
c) Certificate issued by court
containing the name of the
person who has to administer the
property of the deceased.
b) Deposit of title deeds with the

bank with an oral declaration to
mark banks lien.
d) A trust letter executed by company
when goods are taken from the
pledged stock.
b) Confirmation of succession
certificate.
d) Certificate issued by the court
containing also the name of the
executor of a will.
43 | P a g e
THE WINGS
9.
SBLC, MASULIPATNAM
Bankers lien is a
a) Hypothecation
c) Implied pledge.
b) Mortgage.
d) Pledge.
10.
Not negotiable crossing on a cheque means

a) Not within the purview of NI act.
b) It should be paid only to the payee
of the cheque.
c) It restricts further endorsements. d) None of these.
11.
Customer is defined in
a) BR Act.
c) RBI Act
b) NI Act
d) Nowhere it is defined.
12.
The date of maturity of a usance bill dt. 13-6-2010 payable 60 days after date
will be
a) 14th August,2010
b) 16th August, 2010
c) 15th August, 2010
d) 18th August, 2010.
13.
Prospectus is issued by a private limited company when it issues

a) Debentures
b) Shares
c) Both debentures and shares
14.
IBA (Indian banks association) commissioned Gallup India Private Limited

a) Which is a market research and
b) Which is to give comparative
consultancy services company
opinions on individual banks
products
c) For customer education regarding d) For promoting cooperation
banking and financial services
amongst its member banks in
promotion of technology products.
15.
Hypothecation is defined in
a) Indian Contract Act
c) Indian easements act
b) Transfer of property act.

d) SARFAESI Act.
16.
The stamped affidavit for settlement of deceased constituents accounts is not

insisted up to
a) Rs.50,000/b) Up to Rs.1,00,000/c) Up to Rs.5,00,000/d) No maximum limit.
17.
Codicil relates to one of the following?

a) Will
b) Probate
c) Succession certificate
d) paper
18.
A probate is which of the following?

a) Certified copy of will
c) Copy of will in duplicate
b) Certified copy of will by magistrate

d) Will amended later on
19.
Which of the following security cant be created as EM?

a) Plant & Machinery
b) Movable assets
c) Crops, stocks
d) All of the above.
20.
Borrowing powers of Directors of a company are found in

a) Memorandum of association
b) Articles of association
c) Cert. commencement of business d) Balance sheet
44 | P a g e
THE WINGS
SBLC, MASULIPATNAM
21.
Once a bearer always a bearer under section 85(2) is applicable to

a) Cheques
b) Cheques, drafts, bills of exchange.
c) Cheques and bills of exchange
d) All the above.
22.
The meeting under official language act is held

a) Monthly
b) Quarterly
c) Half yearly
d) yearly
23.
Financial contracts outlining an exchange of payments linked to the

performance of a specified underlying credit sensitive asset is called
a) Securitization
b) Derivatives
c) Leasing
d) Factoring.
24.
Registration of charge in case of a company is done as per which section of

companies act?
a) Section:125
b) Section:110
c) Section:115
d) Section:124
25.
The relationship in case of standing instructions between bank and customer is

a) Bailor - bailee
b) Agent- principal
c) Debtor- creditor
d) Creditor-debtor
26.
In case of banks corporate governance clause-49 is governed by

a) IRDA
b) SEBI
c) RBI
d) IBA
27.
Two firms are said to have identical constitutions when

a) They have identical partners
b) Partners of the firm are their
relatives
c) When the two partnerships were
d) When the firms have same name.
registered on the same date.
28.
Guarantees are defined in

a) Indian contract act
c) Transfer of property act
b) Br act
d) NI act
29.
Which one of the following documents will be made invalid by overstamping?

a) Indemnity
b) DP Note
c) Hypothecation agreement
30.
Bank can not grant advance against

a) Shares of Pvt. Ltd. companies
c) Banks own shares
b) Partly paid shares

d) All the above
31.
The probate issued by whom is valid throughout India irrespective of the value
of property as per section:223 of Indian succession act.
a) High court
b) District court
c) Supreme court
32.
Our Chennai Branch has purchased a post dated cheque favouring Mr.X. the
cheque was returned with the reason exceeds arrangement. The bank can
proceed against
a) Mr.X
b) Drawer
c) None
d) Both.
45 | P a g e
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SBLC, MASULIPATNAM
33.
Which of the following is a class-II legal heir of a Hindu?

a) Son
b) Father
c) Widow
d) mother
34.
What are the maximum and minimum stipulations for SLR to be maintained by
Banks as per BR Act?
a) Min: Nil & Max: 40%
b) Min:10% & Max:40%
c) Min:20% & Max:40%
d) Min:25% & Max: 40%
35.
Mr.X has a Overdraft account of Rs.50,000/- drawn in full and is time barred.
He signs RL and also credits into account a sum of Rs.5,000/-. Does this revive
the limitation?
a) Yes
b) No
c) RL itself revives
d) The act of crediting the account
with Rs.5,000/- alone can revive.
36.
Father of a minor is convicted and imprisoned. Then the natural guardian of the
child will be
a) Mother
b) Elder brother
c) Paternal grand father
d) Father.
37.
Unstamped document cant be rectified in case of

a) Mortgage deed
b) Sale deed
c) Partition deed
38.
Within how many days the CPIO has to provide information under RTI Act?
a) 20 days
b) 21 days
c) 25 days
d) 30 days
39.
Consumer protection act is not applicable to

a) Failure to open accounts
b) Failure to issue draft
c) Failure to accept small
d) Non-sanction of loans and
denominations & small coins
advances.
40.
Inchoate instrument is
a) No proper name
c) Incomplete instrument
b) Instrument partially or fully

destroyed
d) Instrument not legible.
41.
Which act governs issue of a probate of a will?

a) Indian contract act
b) NI act
c) Transfer of property act
d) Indian succession act
42.
Bankers lien is available as per which act?

a) TP Act
b) SARFAESI Act
c) Indian contract Act
d) Limitation Act
43.
Which document constitutes the foundation for settlement of a deceased

constituents accounts?
a) Legal heir certificate
b) Proper person certificate
c) Death certificate
d) Letter of administration.
46 | P a g e
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44.
SBLC, MASULIPATNAM
Claytons rule is applicable in case of

a) Term loan & cash credit
c) Term loan & overdraft
b) Demand loan & overdraft

d) Cash credit & overdraft
45.
Property on which EM is created should be in and deposit of title deeds in case

of EM can be done at
a) Notified centers only
b) Notified & any where
c) Anywhere & notified
d) Anywhere
46.
Mortgage is defined in
a) Indian succession act
c) Contract act
b) Transfer of property act

d) Easement rights act
47.
The minimum and maximum CRRs as per RBI Act are

a) Minimum 5% & maximum 25%
b) Minimum 5%, but no maximum
c) Such stipulations are abolished
d) Minimum:Nil & Maximum 25%
48.
Section:171 & 172 of Indian contract Act relate to

a) General lien & pledge
b) General lien & hypothecation
c) Pledge & hypothecation
d) Pledge & general lien
49.
Section:45Z of Banking regulation Act, 1949 is related to

a) Unclaimed deposits
b) Maintenance of SLR
c) Nomination facility
d) Procedure for opening new Brs.
50.
uberrimae fides contracts are pertinent to

a) Banking sector
b) Capital markets
c) Insurance sector
d) Mutual funds sector
ANSWERS
1.
c 2.
d 3.
a 4.
c 5.
c 6.
d 7.
a 8.
d 9.
c 10. d
11. d 12. a 13. d 14. a 15. d 16. b 17. a 18. b 19. d 20. b
21. a 22. b 23. a 24. a 25. b 26. b 27. a 28. a 29. d 30. d
31. a 32. d 33. b 34. a 35. b 36. d 37. d 38. d 39. d 40. c
41. d 42. c 43. c 44. d 45. c 46. b 47. c 48. a 49. c 50. c*
* The term refers to the good faith reposed by the insurer on the facts mentioned in
the application form which the applicant warrants to be true. Hence all life insurance
contracts are uberrimae fides.
47 | P a g e
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SBLC, MASULIPATNAM
Cheque Collection Policy 2010 (Compiled by Shri L.J.Meclarin)

1.
The Bank's Cheque Collection Policy-2010 inter-alia incorporates which of the

following aspects of customer transactions as per recent RBI Guidelines?
a) Banks not to collect charges more b
Make increased use of Speed
than the stipulated charges i,e,
Clearing System and National
Minimum Rs.50/- and maximum
Clearing facilities for providing
Rs.150/- which is all inclusive but
efficient service.
exclusive of service tax. No
additional charges such as
courier charges, out of pocket
expenses etc.
c) To reduce the clearing cycle and
d All the above
to promote electronic modes of
payment, the drawee banks
should use RTGS/NEFT, wherever
available, to remit proceeds to the
collecting bank branch.
2.
The Bank's first ever Cheque Collection Policy was framed in the year
a) 2004
b) 2005
c) 2006
d) 2009
3.
Branch would give credit to customer accounts on the _______ day as the day
of clearing settlement
a) Same day
b) Next day of clearing settlement
c) Third day of presentation
d) Third day after clearing settlement
4.
The Speed Clearing System allows each Bank to notify a branch at the _______
for payment of outstation cheques of its other CBS branches in the country.
a) Speed Clearing Centre
b) MICR centre
c) CCPC Centre
d) National Clearing Centre
5.
RUSU branches will submit outstation cheques of CBS branches of other banks
to the identified _________to which they are linked for presentation through
the Speed Clearing System.
a) CCPC, Service Branch
b) Main Branch
c) MICR Branch
d) Any of the above
6.
The outer time frame for collection of instruments drawn on other Banks
located in Metro cities & Major "A" class cities / State Capitals (other than North
east and Sikkim) and Area I cities / Other locations is:
a) 6/8/10 days
b) 7/10/14 days
c) 5/7//9 days
d) 8/10/12 days
7.
Branches will, on their own accord, afford immediate credit of outstation

cheques of other banks up to and inclusive of Rs. ______ tendered by their
individual customers for credit of their satisfactorily conducted SB/CA:
a) 20000
b) 25000
c) 30000
d) 50000
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8.
Maximum drawals against un cleared effects of a local instrument/cheque that

can be permitted by BM under exceptional circumstances (as per discretionary
power structure) is:
a) 10000
b) 20000
c) 30000
d) 50000
9.
Collection charges for permitting withdrawals against an uncleared effects of a

local cheque/instrument is Rs.______(per instrument)
a) 50
b) 100
c) 150
d) 75
10.
If a cheque/instrument for which immediate credit has been afforded to a

overdraft / loan account is returned unpaid, the Bank shall recover interest:
a) Clean OD Rate
b) Applicable rate for loan account
c) Lower of a & b
d) Higher of a & b
11.
What is the definition of Extraordinary Delay from the notional date of credit in
the context of payment of compensation( vide Compensation Policy 2011):
a) Beyond 25 days
b) Beyond 30 days
c) Beyond 45 days
d) Beyond 90 days
12.
The rate of interest payable on account of normal delay in the collection of

instruments (for credit to deposit account), i.e. beyond the stipulated period of
7/10/14 days (as per changes made vide Compensation Policy 2011) is:
a) SB Rate
b) 5%
c) 7%
d) 10%
13.
The rate of interest payable on account of delay in the collection of instruments

(for credit to deposit account), i.e. beyond 14 days (as per changes made vide
Compensation Policy 2011) is:
a) 5%
b) TDR rate for the corresponding
period
c) 7%
d) 10%
14.
The rate of interest payable on account of normal delay in the collection of

instruments (for credit to overdraft/loan account), i.e. beyond the stipulated
period and up to 45 days is:
a) 5%
b) 1% above SB rate
c) Rate applicable on loan account
d) 1% above base rate
linked to Base rate
15.
The rate of interest payable on account of delay in the collection of instruments

(for credit to overdraft/loan account), i.e. beyond 90 days( as per changes vide
Compensation Policy 2011) is:
a) 5%
b) 1% above SB rate
c) 2% above the applicable rate on
d) Applicable rate for the OD/Rate
overdraft/loan accounts.
16.
The minimum interest payable for delayed collection of instruments is Rs.___

even if the interest calculated works out to less than the amount:
a) 10
b) 50
c) 20
d) 25
49 | P a g e
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17.
A satisfactorily conducted account shall be one which has been:

a) Opened at least six months earlier b) Where branch has not noticed any
and is fully complying with the
irregular dealings / suspicious
KYC and is neither dormant nor
transactions in the last 6 months
inoperative
c) Where the branch has not exped) All the above
rienced any difficulty in recovery
of any amt. advanced in the past
including cheques returned unpaid, after giving credit & no
adverse features attached to the
account/account holders has been
brought to the notice of the bank.
18.
The maximum charge that can be levied by Banks for high value instrument
(Rs.1 lac and above) to be presented in Speed Clearing is:
a) Rs.150 Plus Service tax
b) ) Rs.100
c) Rs.150
d) Rs.200
19.
The bank is accepting cheques /Travellers cheques drawn in _______currencies

for collection.
a) USD & SGD
b) AUD & CAD
c) GBP & EURO
d) All the above
20.
USD cheques over $10000 are to be sent only under:

a) Final Credit Service
b) Guaranteed No Return (GNR)
c) Both the above
21.
Cheques meant for making FCNB / NRE TDR are to be sent under:
a) Guaranteed No return
b) Final Credit Service
c) Both the above
22.
The Branch Managers of Scale III/IV can authorise purchase of foreign cheques
for a rupee equivalent of Rs.________ for satisfactorily conducted accounts:
a) Rs.30000
b) Rs.20000
c) Rs.50000
d) Rs.40000
23.
If a cheque for which immediate credit has been afforded, is returned unpaid,
the Bank shall recover:
a) Clean OD interest from the date b) Clean OD rate / applicable rate,
of credit of proceeds of the
which ever is higher for OD/Loan
cheques in the deposit account till
accounts
reimbursement of money to the
bank.
c) Cheque Return charges &
d) All the above
Exchange Loss
50 | P a g e
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24.
The time frame from the date of deposit of a cheque at a branch to the date of
credit to the customers account for USD, Euro, Pound Sterling, AUD, CAD
instruments payable in their home country will be:
a) 10 days from the date of clear b) 21 days from the date of clear
credit (Nostro credit) including
credit
cooling period or 45 calendar
days whichever is earlier
c) 15 days from the date of clear d) 30 days from the date of clear
credit
credit
25.
The time frame from the date of deposit of cheque at a Branch to the date of
credit to the customers account for USD, Euro, Sterling, Australian $,
Canadian $, cheques/instruments drawn on countries other than home
countries is:
a) 10 days from the date of clear
b) 15 days from the date of clear
credit or 60 calendar days
credit
whichever is earlier
c) 25 days from the date of clear
d) 30 days from the date of clear
credit
credit
26.
The Date of Clear Credit is defined as:

a) The date on which clear funds are b) Where there is no specific
available in our Nostro account
agreement on the cooling period or
after an actual notional cooling
the funds are directly collected
period for actual credit to
from a paying bank, the clear
customers' account as per Bank's
credit date will be after observing a
agreement with the concerned
cooling period, as per the
Correspondent Bank
discretion of the bank, for that
specific currency / country /
clearing system but not exceeding
10 calendar days from the date of
actual credit to Bank's Nostro a/c.
c) None of the above
d) Both (a) and (b)
27.
The minimum interest payable for delayed collection of foreign instruments is

Rs.___ even if the interest calculated works out to less than the amount:
a) Rs.10
b) Rs.50
c) Rs.20
d) Rs.25
28.
State whether the following statement is true or false:

All the drop boxes shall indicate clearly the time up to which cheques
deposited in the drop boxes would be sent for clearing on the same day.
a) True
b) False
c) Can not say
d) None of these
29.
State whether the following statement is true or false:

For local cheques of other Banks, credit shall be normally given on the same
day or at the most next day of the day of presentation in clearing.
a) True
b) False
c) Can not say
d) None of these
51 | P a g e
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30.
Ideally, in respect of local clearing, Bank shall permit usage of shadow credit
afforded to the customer accounts immediately after closure of relative return
clearing and withdrawal shall be allowed on the same day or maximum within
an hour of commencement of business on the next working day, subject to
usual safeguards.
a) True
b) False
c) Can not say
d) None of these
31.
As per recent RBI directions, banks should not charge more than the stipulated
charges i.e. minimum Rs._____ & maximum Rs.______ in respect of outstation
cheques
a) Rs.50 & Rs.100
b) Rs.50 & Rs.150
c) Rs.100 & Rs.150
d) Rs.100 & Rs.200
32.
As per recent Bank instructions, the outstation cheque collection charges for
instruments upto Rs.10000/ Rs.10001 to Rs.100000/ Rs.100001 & above
respectively are as under:
a) Not exceeding Rs.50/ Rs.100/
b) Not exceeding Rs.50/ Rs.100/
Rs.150 per instrument
c) Not exceeding Rs.50/ Rs.150/
d) Not exceeding Rs.100/ Rs.150/
33.
As per recent decision of IBA sub-committee on customer service and customer

rights, it has been decided that all member banks- Collecting Banker & Paying
Banker should share ___: ____ for collection of outstation cheques
a) 25:75
b) 40:60
c) 50:50
d) 75:25
34.
Keeping in view the larger interests of customers and to ensure that uniform
practices are adopted in respect of Dishonor/ Return of Cheques, banks are
recently advised by RBI to indicate/ensure ________
a) The 'date of return' in the Cheque b) Definite and valid reason for
Return Memo without fail
refusing payment
c) A signed / initialed Cheque
d) All the above
Return Memo
ANSWERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11. c
12.
13.
14.
15.
16.
17.
18.
19.
20.
21. a
22.
23.
24.
25.
26.
27.
28.
29.
30.
31. b
32.
33.
34.
52 | P a g e
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SBLC, MASULIPATNAM
Remittances (Compiled by Shri L.J.Meclarin)

1.
The RBI draft is valid for ____ ( becomes stale after)

a) 1 month
b) 2 months
c) 3 months
d) 6 months
2.
RBI draft becomes lapsed if not paid within

a) 6 months from the date of its
b) 1 accounting year from the date
issue
of its issue
c) 2 accounting years from the date d) 3 accounting years from the date
of its issue
of its issue
3.
RBIs accounting Year is

a) April to March
c) January to December
b) July to June
d) Either of the above
4.
A lapsed RBI draft can be revalidated

a) With the clearance of Local Office b) With the clearance of Central
of RBI
Office of RBI
c) With the clearance of Dy.
d) With the clearance of Currency
Governor of RBI
Chest Branch of a Bank
5.
Which of the following statements is not true in respect of RBI draft

a) Duplicate draft can be issued
b) Duplicate Draft can be cancelled
against indemnity
only if both the original &
duplicate are produced
c) If the original is not produced,
d) Duplicate draft cannot be
the payment of the duplicate to
cancelled under any
be obtained at the drawee office
circumstances
6.
RBI Interest warrant lapses _________ months after issue

a) 6
b) 8
c) 12
d) 18
7.
Relationship of Banker with purchaser of Bank Draft:

a) Debtor & Creditor
b) Creditor& Debtor
c) Principal & Agent
d) Agent & Principal
8.
Relationship of Banker with Payee of Bank Draft:

a) Trustee & Beneficiary
b) Debtor & Creditor
c) Creditor& Debtor
d) Principal & Agent
9.
Hologram is affixed on drafts of Rs.______ against the Payees Name To

Prevent Tampering
a) Rs.50000 & above
b) Rs 1 lakh & above
c) Rs.2 lakhs & above
d) Rs.5 lakhs & above
10.
Drafts of Rs. ________should be issued only by debit to customers A/C or

against cheque, etc.
a) Rs.20000/- and above
b) Rs.50000/- and above
c) Rs.100000/- and above
d) Rs.200000/- and above
53 | P a g e
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11.
Payment of Drafts of Rs ___ should be made through Bank A/C and not in
cash
a) Rs.20000/- and above
b) Rs.50000/- and above
c) Rs.100000/- and above
d) Rs.200000/- and above
12.
Which of the following statements is not true in respect of Bank draft

a) If PAN is provided cash
b) Drafts of Rs.1,50,000/- and
transactions of Rs 50000/- and
above should be signed by two
above are permissible
officials
c) No Advice is sent for Drafts
d) Even If PAN is provided cash
below Rs 10 Lakh
transactions of Rs 50000/- and
above are not permissible
13.
Inter Office Instrument (IOI) is a single running security form for issuing ___
a) Demand Draft
b) Associate Bank Draft
c) Bankers Cheque
d) All the above
14.
BGL A/C 98602BBBBBC represents

a) IOI Account
c) Drafts Account
b) IOI to be issued Account

d) Bankers Cheque
BGL A/C 98505BBBBBC represents

a) IOI Account
c) Drafts Account
b) IOI to be issued Account

d) Bankers Cheque
15.
16.
Which of the following statements is not true in respect of IOI

a) Duplicate IOI can be issued
b) Duplicate IOI shall not be
by the issuing branch only.
hand written
c) Triplicate IOI cannot be
d) Triplicate IOI can be
issued
issued
17.
Which of the following statements is not true in respect of IOI

a) Can be issued for all
b) Serial number of IOI will be
denominations including HC
a unique 12 digit number
series upto Rs.99,99,99,999/without any Circle prefix
c) Serial number of IOI will be
d) Instrument type for IOI is 16.
a unique 12 digit number with
Circle prefix
18.
Which of the following statements is not true in respect of Bill of Exchange

a) A bill of exchange is a written
b) signed by the maker, directing
instrument containing
to pay a certain amount of
an unconditional order,
money only to a particular
person, or to the bearer of the
instrument
c) It is a negotiable instrument
d) It is a negotiable instrument
drawn by the seller on the buyer
drawn by the buyer on the seller
for value of the goods delivered
for value of the goods delivered
to him.
to him.
54 | P a g e
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19.
Which of the following statements is not true in respect of Bill of Exchange

a) A demand bill is payable on
b) Clean Bills are accompanied by
demand whereas a Usance bill is
documents of title to goods
payable after a specified time.
c) Documentary Bills are supported d) Clean Bills are not accompanied
by Railway Receipt (RR) or Lorry
by documents of title to goods
Receipt (LR) or Bill of Lading (BL)
20.
In case Blank IOI forms are lost during the transit from Printer to Circle
Stationary Department, such losses are to be reported by _______ to ______.
a) Branch to Central Stationery
b) Circle Stationery Department to
Department
Central Stationery Department
c) Central Stationery Department to d) None of the above
Circle Stationery Department
21.
As per the benchmark prescription known as 'CTS-2010 standard' issued by

RBI, no changes/ corrections should be carried out on the cheques other than
____ for validation purpose, if required effective from Dec 1, 2010. (under the
image-based Cheque Transaction System and not applicable to cheques
cleared under other clearing arrangements such as MICR clearing, non MICR
clearing , over the counter collection for cash payment or direct collection of
cheques)
a) Date
b) Amount
c) Signature
d) None of these
22.
In case Blank IOI forms are lost at Branch,

_______ to _____________.
a) Branch to Central Stationery
b)
Department
c) Branch to Controllers besides
d)
making necessary input in CBS
such losses are to be reported by

Circle Stationery Department to
Central Stationery Department
Central Stationery Department to
Circle Stationery Department
23.
As the __________is updating the whole Bank level data of Draft/IOI

reported lost, the maintenance of Draft/IOI lost register at Branches is
redundant and hence is dispensed with.
a) Draft Reconciliation Department
b) IOR
c) CRMD
24.
RBI has advised that Savings as well as Current Account should be treated
as________if there are no debit as well as credit transactions induced at the
instance of customers in the account for over a period of ____ years.
a) Dormant, 2
b) Inoperative, 2
c) Dormant, 1
d) Inoperative, 1
ANSWERS
1.
2.
3.
4.
11. b
12. d
13. d
14. a
21. a
22. c
23. a
24. b
5.
15. b
6.
16. d
55 | P a g e
7.
17. c
8.
18. d
9.
10. b
19. b
20. b
THE WINGS
SBLC, MASULIPATNAM
Accounting Systems, Cash Department (Compiled by Shri T.V.N.B.Raju)

1.
A PPF can be extended after a period of 15 years, and for ______times.

a)
in five years block without any
b) in five years block for maximum
limit on number of extensions
of 2 times
c)
in five years block for maximum
d) in five year block and for only
of 3 times
once
2.
In case of excess payment of pension, the maximum recovery that can be

effected from future pension every month is _____
a)
1/3 rd pension payable
b) Entire pension amount, till the
excess paid is recovered
c)
of the pension payable
d) In equal instalments but within
one year as convenient to
pensioner
3.
First withdrawal can be permitted in a PPF account after expiry of ____ years
from the end of the year in which the initial subscription was made.
a)
6 years
b) 5 years
c)
3 years
d) No withdrawals allowed till 15
years
4.
As per Accounting Standard (AS) No.17, disclosure of _____ in the balance

sheet is mandatory.
a)
Segment Reporting
b) Related party disclosure
c)
Disclosure of accounting Policies d) Revenue Recognition
5.
Succession Certificates, Death Certificates, Letters of Administration, Probates

etc. are entered in ________.
a)
Title deeds Register
b) Claims Settlements Register
c)
Sundry Documents Register
d) Indemnities obtained Register
6.
RBI is empowered to prescribed retention periods for records of Banks under

________Act.
a)
S 45 Y of BR Act.
b) S 45 Z of BR Act.
c)
S 31 of RBI Act
d) S 45 ZA of BR Act.
7.
The Bank shall return any paid instrument to its customers before the
retention period, if so requested by the customer as per the provisions of ____
Act.
a)
S 45 of BR Act
b) S 45 Y of BR Act
c)
S 45 ZA of BR Act
d) S 45 Z of BR Act
8.
Branch Record Register, Letters of Indemnity and General Ledger of the

Branch are to be preserved for a period of _________years.
a)
permanently
b) 60 years
c)
20 years
d) 12 years
56 | P a g e
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9.
SBLC, MASULIPATNAM
To ensure that Banks are complying with the various policies and directions of
RBI in the area of credit, RBI conducts inspection of Branches as per the
provisions of ____________'
a)
Sec 35 of BR Act
b) Sec 35 of RBI Act
c)
Sec 41 of SBI Act
d) Sec 35 of SBI Act
10. Under Sec _______ of _______Act, our Balance sheet must be certified by
statutory auditors who should submit the report to the Central Govt.
a) Sec 35 of RBI Act
b) Sec 41(7) of SBI Act
c)
Sec 41(7) of RBI Act
d) Sec 35 of BR Act
11. Under Sec.___ of__Act, Bank's accounting year is from 1st April to 31st March.
a) Sec 39 of SBI Act
b) Sec 39 of RBI Act
c)
Sec 41(7) of SBI Act
d) Sec 41 of N.I. Act
12. The following three are the major three sub processes under Risk Based
Supervision (RBS) by RBI.
a) Risk profiling, Risk Minitagating,
b) Risk profiling, Risk Assessment,
Risk Management
Risk Mitigation
c)
Risk profiling, Supervisory Action d) Risk Profiling, Risk Assessment,
Plan, Risk Mitigation
Monitorable Action plan
13. Cash shortage upto _______ which is made good by the employee sameday
and if there is no suspicion of fraud, it neednot be reported as fraud.
a) Rs.1000/b) Rs.5000/c)
Rs.10,000/d) Rs.2500/14. Frauds of Rs._______ and above would be reported to Central office /Regional
office of RBI in form FMR-1.
a) Rs.1,00,000/b) Rs.50,000/c)
Rs.25,000/d) Rs.10,00,000/15. Return on Frauds outstanding (FMR-2) to be submitted to C.O.and RO of RBI
with _______ days of the quarter end.
a) 15 days
b) 30 days
c)
7 days
d) 2 weeks
16. Frauds of Rs. ___ and above committed by outsiders on their own or in connivance with Bank's staff to be reported to Economic Offences wing of Police
a) Rs.10,000/b) Rs.1 lac
c)
Rs.1 Cr
d) Rs.50,000/17. Frauds of Rs. _____ and above committed by Bank employees must be
reported to Police.
a) Rs.25,000
b) Rs.1,00,000
c)
Rs.50,000
d) Rs.10,000
18. Day's net deposits / withdrawals from the Chest will be posted to ____
account.
a) Branch Cash Balance A/c
b) Chest Balance A/c
c)
Currency Transactions A/c
d) Vault account
57 | P a g e
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19. A large volume of cash passes through the Cashiers of the Branch. ____ has
been introduced to ensure transactions have been put through properly,
excessive cash is not kept in the counters and as preventive vigilance step to
prevent frauds.
a) Intra day Cash verification
b) Surprise Cash Checks
c)
Random Cash verification
d) Different Registers for cash
monitoring
20. Frauds of Rs.______ and above must be reported to CBI for investigation.
a) Rs.1 Cr
b) Rs.1 Lac
c)
Rs.5 Cr
d) Rs.10 Lacs
21. It is the responsibility of ______ to make available physical cash (Currency /
coins) to public to meet their requirements.
a) RBI
b) All Banks irrespective of Chest
Maintenance
c)
Any Bank maintaining Chest
d) Authorized Banks/Agents of RBI
22. The minimum amount of deposit into/withdrawal from currency chest will be
Rs._________ and in multiples of Rs.__________
a) Rs.50,000 & Rs.50,000
b) Rs.1,00,000 & Rs.50,000
c)
Rs.50,000 & Rs.1,00,000
d) Rs. 1,00,000 & Rs.1,00,000
23. The currency chest telegram (fax) incorporating days withdrawals, deposits and
closing balance etc. is to be sent to ________
a) FSLO, LHO
b) Issue Dept, RBI
c)
Local A.U.(Z.O.)
d) GAD, LHO
24. The Asstt.(Cash)/SWO who prepares a packet of notes (100 pieces) is responsible for both quality and quantity of the notes of denomination from Rs.__ to
Rs.
a) Rs.1, Rs.100
b) Rs.1 , <Rs.100
c)
>Rs.1, <Rs.100
d) Rs.1, Rs.500
25. ________who recounts the notes above Rs.100/-is responsible for Quantity.
a) Cash Officer
b) Cash officer/any authorized
official
c)
Cash Officer and Accountant
d) Cashier, Cash Officer &
Accountant
26. Cash balance will always show a ___ in General Ledger and it is __________.
a) either debit or credit balance,
b) debit balance, a liability account
a real account
c)
debit balance , an Asset Account d) credit balance, an Asset account
27. ___________shows the quantum of cash in the strong room and in which
deposits/withdrawals are made and is kept in the strong room.
a) Vault Register
b) Chest Register
c)
Currency transactions register
d) Cash Balance Register
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28. The hand balance is kept in the __________in the strong Room.
a) custody of Accountant
b) joint custody of the custodians
c)
single custody of Cash Officer
d) joint custody of any two officials
29. In Cash department, ____________ is maintained in duplicate and one copy is
always kept inside the Strong room of the Branch.
a) The Currency chest book
b) Vault Register
c)
Cash Receipt Delivery book
d) The Cash balance book
30.
As per RBI guidelines, when a remittance is received by a chest branch, the

_____and above denominations must be counted in the presence of
accompanying potdar and the other denominations should be examined at the
earliest but not exceeding ______ days from the date of receipt.
a) Rs.500 , 15
b) Rs.100 , 15
c) Rs.500 , 30
d) Rs.100 , 30
31.
A statement showing the details of counterfeit bank notes detected in the

branch is to be submitted to ______ in ______ intervals and latest 7th of
succeeding month.
a) Controlling authority, quarterly
b) Controlling authority, monthly
c) Issue Department, monthly
d) RBI, monthly
32.
An arrangement by which important keys of the branch like Strong room, hand
safes etc are entrusted to different officials of the branch is known as _____
and the register maintained for this purpose is called _________
a) Locking up Arrangements, Key
b) Protective Arrangements, Key
Register
Register
c) Emergency Arrangements,
d) Locking up Arrangements,
Duplicate Keys Register
Duplicate Keys Register
33.
_______ details the procedure to be followed in case of sudden incapacitation

of the Branch Manager and the same is also entered in ____________.
a) Protective Arrangement, B.D.
b) Emergency Arrangement , B.D.
Register
Register
c) Emergency Arrangement,
d) Locking up Arrangement,
Key Register
B.D.Register
34.
_____________ accounting entries are passed when a currency remittance is

effected i.e. transferred from one Chest to another Chest.
a) No accounting entries passed
b) Dr/Cr:Currency Chest &
Cr/Dr : other Branch
c) Dr/Cr. Vault Register &
d) Dr/Cr: Currency Chest
Cr/Dr. RBI
Cr/Dr: Branch Clearing Gen A/c
35.
The withdrawals from a Small Coin Depot should be for a minimum amount of
Rs._______ and in multiples of _______.
a) Rs.100/- , Rs.50/b) Rs.50/-, Rs.50/c) Rs.100/- , Rs.100/d) Rs.100/- , Rs.10/-
59 | P a g e
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36.
In respect of In-Branch-Cash-Handling System), which of the following is

true:
a) In case the balance is below the
b) The maximum overnight retention
retention limit, C.O. shall deliver
limit is Rs.1 lac and balance above
additional cash upto retention
the retention limit to be handed
limit to S.W.O.
over to C.O.
c) The scheme is applicable to both
d) All above.
Hand Balance branches and Chest
branches
37.
The geometrical shapes for denomination of Rs.100 & Rs.500 provided to

facilitate identification of currency note by visually impaired, on the left side of
the water mark are:
a) Circle & Diamond
b) Triangle & Circle
c) Verticle rectangle & Triangle
d) Square and Triangle
38.
Note refund rules (1975) were issued by RBI under Sec. of __ & ___of Act.
a) Sec 28, 58 (i) , RBI Act
b) Sec 28, 31 of B.R.Act
c) Sec 28, 41 (i), RBI Act
d) Sec 28 , 41 (i) , B.R.Act
39.
The colour of polymer band for soil notes packing for a denomination of Rs.50
and above is ___ and the measurements of Length X Width are:
a) White, 80 mm X 22 mm
b) Pink, 80 mm X 22 mm
c) White, 72 mm X 22 mm
d) Pink, 72 mm X 22 mm
40.
Under the concept of Legal tender which of

a) 50 ps are legal tender for sums
b)
upto Rs.100 and coins below 50
np are legal tender for a sum
upto Rs.50.
c) 50 ps coins are legal tender for
d)
sums upto Rs.50 and coins below
50 np are legal tender for a sum
upto Re.1.
41.
The size of the box used for keeping cash balance under IBCH:
a) 14"X11"X4"
b) 14"X10"X4"
c) 15"X11"X4"
d) 14"X11"X5"
42.
Cash loaded in ATM for the purpose of accounting belongs to :

a) Vendor / AMC provider
b) RBI (As it is drawn from Chest)
c) SBI ( As ATM is owned by SBI)
d) ASC (ATM SWITCH CENTRE)
43.
Two BGL heads in which ATM related un-reconciled posted are

a) 98581 & 98582
b) 98533 & 98534
c) 98576 & 98577
d) 98511 & 98512
44.
One rupee coin forms part of ____ and is issued under _____ Act.
a) Currency chest, Coinage Act
b) Small Coin Depot, RBI Act
c) Hand Balance, Coinage Act
d) Currency Chest, RBI Act
60 | P a g e
the following is true:

50 ps coins are legal tender for
upto Re.1.
50 ps coins are legal tender for
upto Re.10.
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SBLC, MASULIPATNAM
45.
The four key elements of KYC policy in the context of recommendations of

Financial Action Task Force (FATF):
a) Customer Acceptance Policy,
b) Customer Acceptance Policy,
Customer Identification
Customer Identification
Procedure, Monitoring of Txns.,
Procedure, Monitoring of
Reporting of Transactions
Transactions, Risk Management
c) Customer Acceptance policy,
d) Customer Acceptance Procedure,
Monitoring of Transactions,
Customer Identification Policy,
Reporting of Transactions,
Monitoring of High value
Risk Management
Transactions, Risk Management
46.
Despite repeated reminders/communication/contacts, if the customer does not

cooperate for making his account KYC compliant, then the account should be :
a) Frozen
b) Closed only after compliance of
KYC
c) Closed
d) a & b
47.
For redressal of grievance of an ATM customer, the Branch Manager can pay
amount upto Rs. __ and Rs.__ with ATM Transaction slip and without ATM
Transaction slip respectively and it should be disposed off within a period of
__.
a) 15000, 5000, 12 days
b) 10000 , 5000 , 12 days
c) 7500 , 5000 , 12 days
d) 10000, 5000, 15 days
48.
Printing and circulation of forged Indian Currency notes is an offence under

sections of ___________ of ________.
a) Sec 489 A,B,C,D,E of IPC
b) Sec 42 (1),(2),(6) of RBI Act
c) Sec 91, 94 CPC
d) Sec 2, 5 of Prevention of
Corruption Act.
49.
The average life of a currency note and a coin is ______ & _____.
a) 18-20 months, 10-15 years
b) 18-20 months, 5-10 years
c) 12-18 months, 5-10 years
d) 18-24 months, 5-10 years
50.
The spurious coin which is tendered over the counter has been cut and
handed over to the customer and he has disputed your action. The same shall
be sent to ____ for examination at ______ cost.
a) Mint, his
b) Issue Department (RBI), his
c) Issue Department (RBI), our
d) Local Police for investigation, our
ANSWERS
1.
a 2.
a 3.
b 4.
a 5.
6.
a 7.
d 8.
a 9.
a 10. b
11. a 12. d 13. a 14. a 15. a 16. b 17. d 18. c 19. a 20. a
21. a 22. b 23. a 24. a 25. b 26. c 27. a 28. c 29. a 30. a
31. b 32. a 33. b 34. a 35. a 36. d 37. b 38. a 39. a 40. b
41. a 42. d 43. a 44. a 45. b 46. d 47. a 48. a 49. b 50. a
61 | P a g e
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SBLC, MASULIPATNAM
INTER BRANCH TRANSFER SYSTEM (IBTS)

(PREPARED BY SHRI G.V.RAO, MANAGER (TRG)
1.
2.
IBTS is
A Inter branch transfer system
C Inter branch transfer scheme
IBTS is meant for
A Inter branch transfers other than
SC/DDPs
C Inter Branch transfers other than
staff purpose.
B
D
Inter branch transaction system

Inter branch transaction scheme
Inter Branch transfers including

SC/DDP
None of the above
3.
How many new BGL accounts have been created for IBTS purpose?
A 4
B 3
C 2
D 8
4.
The purpose of IBTS is

A To ensure better control on inter
Branch transactions.
Due to RBI compulsions.
To replace Branch Clearing

General Account (BCGA) as IBTS
is self reconciliation facility.
To enable faster realization of
SCs/DDPs
5.
In IBTS, the transaction originated by the originating Branch

A Can be monitored till the same is B The other Branch should be
responded by other Branch.
responding instantly.
C The originating branch cant view D The controllers will be able to
the status after originating
see the status for follow up.
transaction.
6.
The transaction originated by the originated

A Should be accepted by the
B
responding Branch.
C Can be reversed by it at any point D
of time.
7.
The transaction originated by the originating Branch in IBTS

A Can be reversed by the
B Can be reversed by the
originating Branch at any point of
originating Branch on the same
time without the involvement of
day without involvement of the
the responding Branch.
responding Branch.
C Cant be reversed by the declining D None of the above.
Branch without getting declined
by the responding Branch.
8.
Once the transaction in IBTS is declined by

A The originating Branch has no
B
option but to reverse it.
C The originating Branch can only
D
re-originate the entry after
reversal.
62 | P a g e
Branch
Can be accepted or declined by
the responding Branch.
Cant be reversed by the
originating Branch
the responding Branch

The originating Branch can either
reverse or re-originate the same.
Both (a) & (c)
THE WINGS
SBLC, MASULIPATNAM
9.
Re-origination of entry in IBTS by the originating Branch involves

A Accounting entries.
B No accounting entries.
C Automatic accounting entries at
D Automatic accounting entries
originating Branch by the system.
both at originating Branch and
at receiving Branch by the
system.
10.
While re-origination of the entry by the originating Branch, which of the

following can be changed/modified.
A Destination Branch code, amount B Destination Branch BGL No,
and narration
amount and narration.
C Destination Branch code, amount D Destination Branch code, BGL
and destination BGL account.
account and narration.
11.
For responding a IBTS entry, the responding Branch

A Need not depend on any
B It can respond after receiving
documents.
system generated forward letter
and documents.
C It can respond on the strength of D None of the above.
Branch Clearing General Account.
ANSWERS
1
B 2 A 3 A 4 B 5
B 7 B 8 B 9 B 10 D
11 B
63 | P a g e
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SBLC, MASULIPATNAM
Government Business (Compiled by Shri T.V.N.B.Raju)

1.
State Bank of India acts as an agent of RBI in carrying out the Government
Bussiness as per the provisions of _______.
a) Sec.45 of RBI Act
b) Sec.45 of RBI Act & Sec.32 of SBI
Act
c) Sec.2 of RBI Act & Sec 45 of SBI
d) Sec.32 of RBI Act
Act
2.
The passing of a bill drawn by a Drawing Officer for payment by the Treasury
Officer is called ______ and is valid for _____ days.
a) Pay Order, 10
b) Pay Order, 7
c) Passing Order, 10
d) Treasury payment, 10
3.
A revalidated bill which is revalidated by the STO/TO is valid for a period of ___
a) 15 days
b) 10 days
c) 7 days
d) one month
4.
Government credit are entered in the Government Credit scrolls and the credit
voucher is called Govt. Challan. In the event of loss of a challan, the procedure
followed is _____.
a) No duplicate will be issued. Only a b) Only Certificate can be issued, free
certificate will be issued for which
of cost and only once.
Rs.20 is charged.
c) No duplicate will be issued. Only
d) A duplicate challan will be issued at
duplicate counterfoil will be issued
a cost of Rs.20/for which Rs.20 is charged.
5.
Which of the following is true with regard to PPF accounts:

a) The annual ceiling of Rs.1,00,000 b) Minimum amount of Deposit is
includes penalty, late fees and
Rs.500 & Maximum amount of
maximum no. of remittances in a
deposit is Rs.1,00,000 per year
financial year is 12.
c) No PPF a/c can be opened in the
d) All above
name of Trust, PF or NRI.
6.
Electronic Accounting System for payment of Excise and Service Tax etc. by an
assesses is called:
a) EASIEST
b) EST
c) ESIEST
d) EEST
7.
CIN & TIN in OLTAS stand for:

a) Challan Identification Network,
Tax Identification Number
c) Challan Identification No., Tax
Identification Number
8.
b) Challan Information No., Tax

Identification Number
d) Challan Identification No.,Tax
Information Network
Govt. commission receivable on account of a receipt including PPF & SCSS-2004

is Rs.______
a) Rs.45 per transaction
b) 9 paise per Rs.100/c) Rs.60 per transaction
d) 45 paise per Rs.100/-
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9.
Which of the following is true with regard to SCSS-2004 is:

a) Maximum deposit that can be
b) Rate of Intt is 9% p.a. and interest
made is Rs.15 Lacs
can be paid on the date of fixed
quarter end like 31st Mar.
c) Only those who attained age of
d) All the above
60 yrs and above can open the
a/c
10.
The commission receivable on account of a Pension Payment transaction is :

a) Rs.45 per transaction
b) Rs.60 per transaction
c) 9 paise for Rs.100
d) Rs.60 per Central Govt. pension
and Rs.45 for state Govt. Pension.
11.
The Govt. commission is shared by Receiving Branch and focal point branch in
the ratio of ___
a) 70:30
b) 25:75
c) 75:25
d) 30:70
12.
An Income Tax Refund Order (ITRO) is valid for_____.

a) As per validity printed on ITRO
b) 6 months
c) 1 month
d) 3 months
13.
Failure to deduct or deposit TDS deducted in Govt. account will attract interest
at the rate of ____apart from penalty equivalent to the amount of TDS and
rigorous imprisonment of minimum ___ months which may go up____ years in
addition to fine.
a) 12%, 1,7
b) 12%, 3, 7
c) 15%, 6, 3
d) 15%, 3,7
14.
Passing of Challan by Treasury officer / Head of Department is known as:

a) Enfacement of Challan
b) Passing of Challan
c) Validation of Challan
d) Defacement of Challan
15.
As per Section 2 (23) of the Stamp Act,1899, a receipt would attract stamp
duty of Rupee One , if the amount of value exceeds Rs.______
a) 5000
b) 100
c) 500
d) 1000
16.
IFSC code no. which is mandatory for RTGS/NEFT transactions stands for:
a) International Financial Services
b) Indian Financial Services Code
Code
c) Indian Financial System Code
d) International Financial System
Code
17.
As per recent RBI guidelines for Clearing house member Banks, for intra-day
overdraft, irrespective of the time period for which the overdraft facility is
enjoyed, interest to be charged shall be:
a) No interest will be levied for intra b) relevant RBI LAF Repo Rate + 200
day over draft
basis points
c) relevant RBI LAF Repo Rate
d) relevant RBI LAF Repo Rate + 100
basis points
65 | P a g e
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SBLC, MASULIPATNAM
18.
The UTR no. in RTGS/NEFT transactions stand for:

a) Unique Transfer Reference No.
b) Universal Transaction Ref. No.
c) Unique Transaction Reference No. d) Unique Transaction Registration No.
19.
The UTR in RTGS/NEFT transactions has _____ characters and it is _______.

a) 11, alpha-numeric
b) 16, numeric
c) 16, alpha-numeric
d) 11, numeric
20.
As per recent guidelines of RBI for overdrafts by clearing house member Banks,
if the overdraft extends to the following day (overnight and beyond), interest to
be charged shall be :
a) relevant RBI LAF Repo Rate +
b) relevant RBI LAF Repo Rate + 100
300 basis points
basis points
c) No interest will be charged.
d) Bank rate will be charged.
21.
IFSC has____ digits and the first four characters represent____.

a) 11, Bank's code
b) 11, Branch code
c) 11, Random no. generated
d) 11, Transaction number
22.
Pension Payment Orders (PPOs) are kept in the custody of :

a) Administrative Office
b) CPPC
c) Branch
d) Local Head Office
23.
Commission receivable on account of Govt payments other than on pension is :

a) 9 paise per Rs.100
b) Rs.60 per payment
c) Rs.45 per payment
d) 9 paise per Rs.10
24.
Strong room fitness certificate is obtained ______, and to be kept as ____.

a) Every year, Branch Document
b) Once in three years, Branch
Document
c) Every Year, Joint Custodian's
d) Every Year, Miscellaneous
document
document
25.
When Form 15 H is received, which of the following is the correct action?

a) Should be entered in CBS and
b) Should be forwarded to I.T. dept
filed separately year wise.
on or before 7th of Next month.
c) Should be forwarded to I.T. dept
d) Form to be retained in the Branch
quarterly with 10 days from
and all particulars are to be
quarter end.
submitted to I.T. dept.
26.
If a customer does not provide his PAN no. in Form 15 G, then TDS will be
deducted at the rate of _____.
a) 10%
b) 10.3%
c) 20% or rate applicable, which
ever is higher
27.
The user type of a Cash Officer / Head Cashier in CBS is:

a) either 60 or 50
b) 50
c) 60
d) 45
28.
The user type of Accountant (Vault teller) in CBS is:

a) 45
b) 60
c) 50
d)
1
66 | P a g e
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SBLC, MASULIPATNAM
29.
If original as well as duplicate presented together for payment which of the

following is true:
a) Duplicate should be paid, original b) Original should be paid, duplicate
to be returned for the reason :
to be returned for the reason :
Duplicate since paid.
Original since paid.
c) Both will returned as there is a
d) Contact the purchaser of the Draft
suspicion.
and ascertain which is to be paid.
30.
If lost draft is presented to us for payment,

a) Ensure with utmost care that
b)
payment is made to the rightful
holder
c) Insist for duplicate draft and then d)
decide.
before duplicate is paid:

Lost draft cannot be paid
Ask for the both before payment is

effected.
31.
Which of the following is a BPR initiative?

a) Drop Box
b) RTGS/NEFT
c) IOI
d) a & b
32.
GLIFF stands for:

a) General Ledger Interface file
c) General Ledger Interface file &
folder
b) General Ledger Interface Folder

d) General Ledger Internal face File
33.
The unreconciled/unposted Cash entries appear in ___ report:

a) GL DIFF
b) GLCOMP
c) GLCNTR
d) GL MISMATCH
34.
Rate of Income tax for the financial year 2011-12 for salaried class with an
income slab of Rs.5,00,001 and Rs.8,00,000 is :
a) 30%
b) 20%
c) 10%
d) partially 20% & partially 30%
35.
As per Sec.80(C) of Income Tax Act maximum amount of exemption (including

investment in infrastructure bonds) is :
a) Rs.1,20,000
b) Rs.80,000
c) Rs.1,00,000
d) Rs.1,50,000
36.
EASeR-C stands for :

a) Electronic Accounting system for
e-Receipts (Customs)
c) Electronic Assessment Service for
e-Receipts (Customs)
b) Electronic Assessment system for

excise Receipts (Customs)
d) None of these
37.
Which of the following is mandatory for a TDS certificate:

a) TAN
b) PAN
c) CIN
d) All the above
38.
Validity of IRTO is ___ and that of RBI draft is____.

a) 3 months, 6 months
b) 3 months, 3 months
c) 6 months, 6 months
d) 6 months, 3 months.
67 | P a g e
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39.
TDS is deposited into Govt a/c within a period of ___ days of next month.
a) 7
b) 15
c) 10
d) 30
40.
Govt. commission for the last quarter is debited to ___ a/c for arriving at
Profit/Loss of the branch.
a) Commission Receivable A/c
b) Adjusting account
c) Focal Point/Link Br a/c.
d) Not debited, as actuals would be
received.
41.
Rate of Interest payable on SCSS deposits is ______.

a) 9%
b) 8.5%
c) As advised by RBI from time to
d) As advised by Bank from time to
time
time.
42.
Penalty in case of min. subscription not been made in PPF a/c in a year is__.
a) Rs.5 per month
b) Rs.100
c) Rs.50 for half year
d) Rs.50
43.
Under revised challan correction mechanism (RJ-18) if amount of concerned

challan is less than Rs._______, then reversal/cancellation can be performed in
CBS without any approval.
a) Rs.1000
b) Rs.5000
c) Rs.500
d) Rs.2000
44.
As per Finance Act, 2011, Very Senior Citizen is a resident of age ____ years
and above.
a) 75
b) 65
c) 80
d) 70
ANSWERS
1.
b 2.
11. c
a 3.
b 4.
a 5.
d 6.
a 7.
d 8.
a 9.
d 10. b
12. d 13. d 14. a 15. a 16. b 17. d 18. c 19. c
21. a 22. b 23. a 24. a 25. b 26. c
27. c
20. a
28. c 29. a 30. a
31. a 32. a 33. b 34. b 35. a 36. a 37. d 38. a 39. a 40. b
41. a 42. d 43. a 44. c
68 | P a g e
THE WINGS
SBLC, MASULIPATNAM
NEW PENSION SYSTEM

(Prepared by Shri T.V.N.B.Raju, Chief Manager (Training))
1. How many accounts are opened under New Pension System?
a) 2
b) 4
c) 3
d) Only one
2. New Pension System (NPS) has been introduced in India w.e.f.______.
a) 01.12.2009
b) 01.05.2009
c) 01.04.2010
d) 01.04.2011
3. Which of the following account under NPS is meant for monthly pension?
a) Tier-1
b) Tier-3
c) Tier-2
d) Tier-4
4. The two accounts of NPS are called as:
a) A/c No.1 & 2
c) Withdrawable & Non
withdrawabale accounts
b) Tier-1 & Tier-2

d) Permanent account & Savings
Account
5. From which account, funds withdrawal is allowed without any restriction of

annuitization?
a) Tier-1
b) Tier-2
c) Tier-3
d) Tier-4
6. What is the minimum percentage of the subscriptions that should be
annuitized under Tier-1 for monthly pension under NPS?
a) 40%
b) 60%
c) 50%
d) 45%
7. The trustee to New Pension System is_________________.
a) State Bank of India
b) Indian Bank
c) Bank of India
d) PFRDA
8. The apex regulatory authority for New Pension System is____________.
a) Pension Fund Development
b) Pension Fund Controlling &
Authority (PFDA)
Regulatory Authority (PFCRA)
c) Pension Fund Regulatory Authority d) Pension Fund Regulatory &
(PFRA)
Development Authority (PFRDA)
9. Point of Presence (POP) under New Pension System is ______________.
a) The Institutions/organizations
b) The Branches of public sector
authorized to handle NPS
Banks authorized to handle NPS
c) The state Capitals where New
d) Where large number of eligible
Pension System is introduced.
subscribers are present.
10. The Nodal Branch in State Bank of India for New Pension System is_______.
a) Hyderabad Main Branch
b) New Delhi Main Branch
c) Mumbai Main Branch
d) Main Branch, Chennai
11. Central Recordkeeping Agency (CRA) for the New Pension System is:
a) NSDL
b) CSDL
c) PFRDA
d) IRDA
69 | P a g e
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12.
The Custodian under New Pension System(NPS) is:____

a) CSDL
b) PFRDA
c) NSDL
d) Stock Holding Corporation of
India limited (SHCIL)
13.
The funds management under NPS is taken care by:

a) Point of Present (POP)
b) PFRDA
c) Pension Fund Manager (PFM)
d) Central Record Keeping Agency
(CRA)
14.
The Branches of the authorized Banks/institutions which are identified to

handle New Pension System (NPS) business are called as_______________.
a) Point of Presence -Service Provider b) Point of Presence -Selling Point
(POP-SP)
(POP-SP)
c) Point of Sales (POS)
d) Point of Presence - Service
Centres (POP-SC)
15.
Minimum contribution at the time of account opening for a Tier-1 account is

Rs. :
a) 500
b) 250
c) 1000
d) 6000
16.
Minimum contribution at the time of account opening for a Tier-2 account is

Rs. :
a) 250
b) 500
c) 1000
d) 2000
17.
Minimum contribution to be made in an year into Tier-1 account is

Rs._______.
a) 2000
b) 1500
c) 6000
d) 500
18.
Minimum contribution to be made in an year into Tier-2 account is

Rs._______.
a) 2000
b) 250
c) 6000
d) 500
19.
The contributions to a Tier -1 account are accepted in multiples of Rs.______.

a) 100
b) 250
c) 1000
d) 500
20.
The contributions to a Tier -2 account are accepted in multiples of Rs.______.

a) 250
b) 1000
c) 500
d) 100
21.
Penalty of Rs. _______to be levied on the subscriber for not maintaining the
minimum Account balance and/or not making the minimum number of
contributions.
a) 100
b) 200
c) 500
d) 50
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22.
What is the cost charged by a POP-SP while accepting a contribution to NPS?

a) Rs.45
b) Rs.50 + service tax
c) Rs.60
d) Rs.20 + service tax
23.
How many credits(contributions)are accepted into a Tier-1 a/c in a financial

year?
a) 12
b) 24
c) 18
d) Unlimited
24.
What is the maximum percentage of funds allowed for withdrawal from

Tier-1?
a) 60
b) 40
c) 50
d) 25
25.
What is the minimum percentage of annuitisation to be made for Tier-1

funds?
a) 40
b) 50
c) 60
d) 25
26.
With respect to Tier-2 account of NPS, which of the following is correct?

a) Funds can be withdrawn any time. b) Funds can be tfd to Tier-1 a/c
c) Entire amount can be withdrawn
d) All the above.
without annuitization.
27.
The three asset classes of NPS where funds will be invested, are:________
a) Equity, Rated Companies, Bank
b) Equity, Rated Companies,
Deposits (E C B)
Government securities (E C G)
c) Equity, Rated Companies, Bonds
d) Auto, Active, Non specific
(E C B)
28.
What is maximum number of nominees that can be appointed under NPS?

a) 1
b) 2
c) 3
d) 4
29.
What is Active investment option under NPS?

a) Funds are actively invested by the
b) Funds are invested in Active
Funds Manager
Equity.
c) where the fund manager will
d) where investor(Subscriber) will
choose the investment pattern to
give his mandate for the
be followed.
investment pattern to be
followed.
30.
What is the Auto Investment option under NPS?

a) Investments are made by the
b) Investments are made by the
Funds Manager, in the absence of
Funds Manager as per the
an active option as per the age
mandate of the subscriber.
profile of the subscriber.
c) Investments are made by the
d) Investments are made by the
Funds Manager as per PFRDA
Funds Manager as per the
guidelines.
market trend.
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31.
What is PRAN under New Pension System (NPS)?

a) Permanent Registration & Account b) Permanent Retirement
Number
Association Number
c) Permanent Retirement Account
d) Pension on Retirement Account
Number
Number
32.
The Password used for viewing the Permanent Retirement Account (PRA) in
internet is:
a) T PIN
b) I PIN
c) M PIN
d) P PIN
33.
The Password used for telephone enquiries about the Permanent Retirement
Account (PRA) is:
a) I PIN
b) T PIN
c) M PIN
d) P PIN
34.
NPS is a voluntary Pension System of Pension Fund Regulatory &

Development Authority (PFRDA) open to all citizens in the age group of
________ years.
a) 18-60
b) 21-60
c) 21-55
d) 18-55
35.
Which of the following is True with respect to NPS?

a) Working class from Unorganised
b) Existing employees who are
Sector are also eligible for
already eligible for pension can
subscribing to NPS.
also join this scheme to get 2nd
pension.
c) Every Citizen of India who is in the d) all the above
age bracket of 18-60 can join the
scheme.
36.
e-PACT is ____________.
a) software for Pension Application &
Contribution Tracking System
c) Software for contributions under
NPS.
b) software for Payment systems

under NPS.
d) Payments Acceptance and
Contribution Tracking.
37.
The software / package for New Pension System is called _____.

a) e-PACT
b) e-NPS
c) e-NPS ACT
d) e-PAS
38.
The facility of Tier-II account under NPS has been offered

w.e.f.___________.
a) 01.04.2011
b) 01.05.2009
c) 01.04.2010
d) 01.12.2009
39.
The POP-SP will charge Rs______ for carrying out KYC at the time of
processing the account opening under NPS.
a) Rs.40 + service tax
b) Rs.45 + service tax
c) Rs.20+ service tax
d) Rs.60+ service tax
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40.
The maximum amount of contribution one can make for New Pension System
is :
a) Rs.70,000 per annum
b) Rs.1,00,000 per annum
c) Rs.60,000 per annum
d) unlimited
41.
Which of the following true with respect to NPS?

a) Account openings / contributions
b) The contributor can choose
/requests of sundry changes etc.
Funds Manager of his choice at
shall be accepted and forwarded by
the time of opening the PRA.
POP-SP.
c) SBI is an active Funds Manager.
d) all the above
42.
The subsidiary of SBI for management of pensions funds under NPS

is________.
a) SBI-NPS Pvt. Ltd.
b) SBI Funds Management Pvt. Ltd
c) SBI Pension Funds Pvt. Ltd.
d) SBI Pension Funds Payments
Pvt Ltd
43.
What is the maximum percentage of investment allowed under the category

of "Equity (E) class" of investments under NPS?
a) 50%
b) 25%
c) 75%
d) 60%
44.
Which of the following is True?

a) KYC & a Bank account are a must
for opening a Tier-1 account.
c) Tier -1 is a must for opening a

Tier-2 account.
b) Tier-I and Tier-II accounts can

be opened simultaneously
and/or separately on different
dates.
d) All the above.
45.
PRAN (Permanent Retirement Account Number) card is issued by ______.

a) Pension Fund Manager
b) POP-SP
c) Central Record Keeping Agency
d) POP
(CRA)
46.
The variant of NPS wherein Government will make a contribution of Rs.1000/per annum for three years is _____________.
a) NPS-Swavalamban
b) NPS-Swadhikar
c) NPS-Aam Admi
d) NPS-Saral Jeevan
47.
The maximum age upto which the withdrawals can be made by the
subscriber , either in lumpsum or in phases, from a Tier-1 account :
a) 60
b) 70 years
c) 65
d) 75
48.
The minimum annuitization required, in the event of withdrawals of funds

from Tier-1 account, before 60 years of age, is __________%.
a) 80
b) 70
c) 50
d) 60
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49.
The password in e-PACT should have special characters and should not
exceed __ characters.
a) 8
b) 6
c) 10
d) 5
50.
The password in e-PACT should have minimum ______.

a) 8 characters
b) 6 characters
c) 4 characters
d) 10 characters
ANSWERS
1.
a 2.
b 3.
a 4.
b 5.
b 6.
a 7.
c 8.
d 9.
a 10. c
11. a 12. d 13. c 14. a 15. a 16. a 17. c 18. a 19. d 20. a
21. a 22. d 23. d 24. a 25. a 26. d 27. b 28. c 29. d 30. a
31. c 32. b 33. b 34. a 35. d 36. a 37. a 38. d 39. c 40. d
41. d 42. c 43. a 44. d 45. c 46. a 47. b 48. a 49. c 50. a
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Foreign Exchange (Compiled by Shri T.V.N.B.Raju)

1.
The Fund Angle Clearance (FAC) given by FD (GMU), Kolkata in respect of

PCFC/ EBR loans is valid for
a) Same Day
b) 10 days
c) 3 days
d) 7 days
2.
Under liberalized scheme resident of India can now remit USD _______.
a) USD 200000
b) USD25000
c) INR equivalent to Rs.20 lacs
d) USD 100000
3.
A contract to buy or sell a specified amount of currency at a specified price on a

specified future date is called :
a) Futures
b) Forward Contract
c) Hedging
d) Derivatives
4.
In FCNR deposits, the exchange risk is borne by _______.

a) ECGC
b) Bank
c) Depositor
d) Remitter
5.
Exim Bills software is purchased from:

a) TCS
c) China Systems
6.
USOFAC stands for :

a) US Office of Funds Angle
Clearance
c) US Office of Foreign Assets
Control
b) FNS Australia
d) Comlink, USA
b) US Office of Foreign Agents Control
d) None of these
7.
A sub one LIBOR and the recent upgrade to India's sovereign Ratings by
Ratings Agency Standard & Poor is expected to
a) improve the ratings of Indian
b) increase the cost of foreign
companies abroad
borrowing for Indian companies
c) inflate the cost of foreign
d) reduce the cost of foreign
8.
_______ takes care of commodity part of the foreign trade in Inida.

a) DGFT
b) Exim Bank
c) Ministry of Finance
d) Ministry of Foreign Affiars
9.
Funds Angle Clearance (FAC) given by Foreign Dept.(GMU) is now valid for a
period of ______for FCNB loans and in the event of non availment of the loan,
the borrower can make a fresh request after ______ days from the FAC date.
a) 3 days, 30 days
b) 5 days, 120 days
c) 15 days, 90 days
d) 15 days, 45 days
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10.
When a trader imports goods from one country and exports to another country,
without the goods touching the Indian shores, which of the following is true?
a) It is called Merchanting Trade
b) In that case both GR, BILL of Entry
procedure is not applicable.
c) Both export and import leg is to
d) All of the above.
be completed in 6 months &
foreign exchange outlay should
not be for more than 3 months.
11.
The new product introduced for Clientele Business in Currency Futures is called
(where Bank will act as an intermediary/broker by providing online platform
linked to the Bank a/c for the customer to place the trades in the exchanges):
a) SBI Mercury Trade
b) SBI Fx Trade
c) SBI Fx Plus Trade
d) SBI Futures plus
12.
Any person resident in India can now take INR______ outside India per person
and any resident Indian who had gone out of India on a temporary visit may
bring into India on his return, USD_______ per person without CDF.
a) 7500/-, $ 7500/b) 25000/-, $ 5000
c) 7500/- , 7500/d) 7500, $ 5000
13.
Deposits under the scheme "Home Coming Deposit Account (HCD)- Resident
Foreign Currency Accounts" for Returning Indians) are accepted in State Bank
of India in ________ currencies and as __________ .
a) USD/JPY/GBP/Euro, as TDR only b) USD only, both time & demand
deposits
c) USD/EURO, only as SB/CA
d) USD only, TDR
14.
The latest version of UCPDC, a publication of ICC is ____ and is effective from:
a) UCPDC 600,0 1.07.2007
b) UCPDC 700, 27.08.2009
c) UCPDC 600, 01.07.2009
d) UCPDC 600, 01.07.2008
15.
Interest rate in Forex are determined by _____

a) Market Forces
b) FEDAI
c) RBI
d) LIBOR
16.
In the forex market, if the Dollar rate is changed from Rs.45 to Rs.Rs.46, it is
said as _______
a) Dollar depreciated
b) Rupee depreciated
c) Rupee appreciated
d) Convertibility fluctuations
17.
Our account with a foreign correspondent is called______________

a) Foreign currency account
b) VOSTRO account
c) LORO account
d) NOSTRO account
18.
Import trade is regulated by ___, which is under Ministry of ___ of Govt. of

India.
a) Directorate General of Foreign
b) Directorate of Enforcement,
Trade (DGFT), Finance
Commerce
c) Directorate General of Foreign
d) Foreign Department, Home
Trade (DGFT), Commerce & Ind.
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19.
An entity in foreign Trade must have an "Importer Exporter Code (IEC)" which
can be procured from: _______
a) Enforcement Directorate (ED)
b) Ministry of Finance
c) Directorate General of Foreign
d) Income Tax Department
Trade (DGFT)
20.
The form in which applications are made by persons, firms and companies for
making payments exceeding USD 5000 towards imports into India is ______.
a) Form A-1
b) Form A-2
c) IMPEX form
d) IPA (Import Payments Application)
21.
A person bringing foreign currency into India should file a declaration called
________ to Customs authorities if the foreign currency exceeds ________.
a) Currency Declaration Form(CDF), b) Currency Declaration Form(CDF),
USD 10,000
USD 5000
c) Foreign Exch. Declaration Form
d) Foreign Exch. Declaration Form
(FEDF), USD 10,000
(FEDF), USD 5,000
22.
______ is submitted in duplicate to Customs seeking permission to take the

goods out of the country and is an evident that goods have actually been
exported.
a) Bill of Lading
b) GR Form
c) Bill of Entry
d) Impex Form
23.
The time period allowed for exports proceeds realization and repatriation is
______ from the date of export and the same for SEZs is ________.
a) 180 days, 360 days
b) 270 days, 12 months
c) 12 months, no specific time limit
d) 180 days, no specific time limit
24.
Physical import of goods in India to be made within ______months from the

date of remittance of an Advance payment for import of goods into India and
evidence of import to be submitted within _____ days of the close of the
relevant period.
a) 6, 15
b) 12, 15
c) 6, 30
d) 12, 30
25.
The All in cost ceiling for Trade Credit, for payment of interest on usance bills
or under trade credit in the form of Buyers credit and Suppliers credit for a
period of one year for raw material imports and upto less than 3 years for
capital goods import is ____________.
a) Libor plus 175 basis points
b) Libor plus 200 basis points
c) Libor plus 100 basis points
d) Mibor plus 200 basis points
26.
ICC is head quartered in ________.

a) Newyork
c) Paris
27.
b) Antwerp
d) Basel
An important publication of ICC in connection with rules relating to Collection

of export documents:
a) ICPDC 600
b) URC 725
c) URC 522
d) URR 725
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28.
As per extant guidelines, Deposit of funds in FCNR(B) accounts may be

accepted in :
a) Australian Dollar & Singapore
b) Canadian Dollar, Singapore Dollars
Dollars only
only
c) Any freely convertible currency
d) USD, JPY, Euro & Pound Sterling
29.
The nodal Branch for funds settlement under Western Union Money Transfer is:
a) NRI Branch, Kochi
b) Main Branch, Kochi
c) GMU, Kolkata
d) FD, Kolkata
30.
The remittance facility for remittances from US is :

a) SBI Express Remit(US)
b) SBI Express Remit
c) SBI Express
d) e-Remit
31.
_______________ provides end to end electronic funds transfer of Rupee

remittance from Gulf Countries.
a) SBI Express
b) SBI Express(US/UK)
c) Rapid Remittance
d) e-Remittance
32.
The minimum and maximum amounts that can be remitted from a remitter
from Gulf countries under SBI Express are _____ & ________
a) Rs.500, Rs.10,00,000
b) Rs.1000, Rs.1,00,000
c) Rs.500, Rs.1,00,000
d) Rs.1000, Rs.12,00,000
33.
SBI Express Remit uses the US net work called _________________ to initiate
a debit to the remitter's US Bank account.
a) Global Link Services Clearing
b) Automated Clearing Cell (ACC)
House (GLSC)
c) Automated Clearing House (ACH) d) Global Payment Services Clearing
House (GPSCH)
34.
______________ is a real time rupee remittance facility from all SBI Branches
in 18 countries across the world and also from Associate Banks through NEFT.
a) Rapid Remittance
b) Instant Transfer
c) Core Power
d) Express Remit
35.
The following are the rupee denominated products available to NRIs:

a) NRE, NRO
b) NRE, FCNR
c) NRO, FCNR
d) NRE, NRO, FCNR
36.
Which of the following is true with regard to NRI deposit accounts.

a) POA holder is not permitted to
b) POA holder is not permitted to
repatriate outside India, funds
make payment by way of Gift to a
held in the account other than to
resident on behalf of NRI account
the NRI account holder
holder
c) Repatriation of funds from NRO
d) All the above
a/cts are subject to RBI guidelines
under FEMA, how the same is
freely allowed from NRE accounts
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37.
Which of the following is a permitted credit into NRE a/c?

a) Interest accruing on the funds
b) Proceeds of personal cheques
held in the account/ Interest on
drawn on his foreign currency
Govt. securities
account abroad
c) Transfer from other NRE/FCNR
d) All the above
account
38.
Present cap on repatriation of funds from an NRO a/c is:

a) USD 1 Mn per financial year
b) USD 10 Mn per financial year
c) Funds cannot be repatriated from d) INR equivalent to USD 100000.
an NRO a/c
39.
For consider sanction of Exporters Gold Card to an Exporter Borrower, the

overdue export Bills should not exceed _________
a) 10% of previous year turnover
b) 10% of last 3 years average
turnover
c) 5% of previous year turnover
d) 15% of previous year turnover
40.
The maximum amount of loan that can be sanctioned as a Foreign Currency

Loan (FCL) to NRIs against FCNR(B) deposits is :
a) Rs.10 Lacs
b) Rs. 1 Cr
c) Rs.50 lacs
d) No loan can be sanctioned
41.
The Minimum amounts of loan that can be sanctioned as an Foreign Currency

Loan to NRIs against FCNR(B) deposits in USD, EURO, GBP are ________
respectively.
a) 25000, 15000, 20000
b) 25000, 25000, 20000
c) 25000, 20000, 15000
d) 20000,25000,15000
42.
The maximum quantum of remittance, a remitter can sent under SBI Express
Remit (US) is USD _______in case of direct credit, and is USD___for other wise
a) 7500, 6000
b) 10000, 5000
c) 10000, 7500
d) 7500, 5000
43.
If a demand bill is not retired within 10 days, the bill amount will be crystallized
on the __ day by converting the foreign currency into INR by applying ___ rate.
a) 10, Bill Selling
b) 15, TT Buying
c) 10, Bill buying
d) 30, Bill Selling
44.
The following is an important change in UCP600 which is with effect from

01.07.2007:
a) Banks have a maximum of 5
b) The Language has been made
banking days following the day of
simple and clear. The respopresentation to determine
nsibilities of all parties have
whether presentation is
become much more transparent.
complying
c) The number of articles has been
d) All of the above
reduced to 39.
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45.
An individual (not being a citizen of Pakistan /Bangladesh/Srilanka/Afghanistan/

China/Iran/Nepal/Bhutan) who (a) at any time held an Indian Pass passport (b)
who or either of whose father or mother or whose grand parents was a citizen
of India by virtue of Constitution of India or the Citizenship Act, 1955 is called :
a) Overseas Community Body
b) Person of Indian Origin
c) Non Resident India
d) Non Resident Indian Ordinary
(NRO)
46.
Which of the following is true with respect to GR form in Export sales?

a) Export promotions upto 2% of
b) GR waiver can be considered for
average annual exports during
Gifts upto Rs.5 Lacs
preceding 3 financial years
subject to a ceiling of Rs.5 Lacs
c) GR waiver can be considered for
d) All the above.
exports less than USD25000.
47.
As per extant guidelines, Form A1 has to be obtained for imports exceeding ___
with effect from 24/2/2012
a) USD 5000
b) USD 1000
c) USD 2500
d) to be obtained for all imports.
48.
A person resident in India may open with an Authorised Dealer an account in

Foreign currency called _______________ and can credit _____% of his
foreign exchange earnings.
a) Exchange Earners Foreign
b) Exchange Earnings Foreign
Currency (EEFC), 100%
c) Exchange & Earnings Foreign
d) Exchange & Earnings Foreign
49.
In Export finance, Running account facility can be sanctioned to an exporter

borrower if and only if overdue export bills should not exceed____________
a) 10% of average annual export
b) 5% of average annual export
realizations for last 3 years
realizations for last 3 years
c) 10% of average annual export
d) 5% of average annual export
realizations of last year.
realizations of last year.
50.
Opening of joint accounts by NRIs with resident Indians as a joint account

holder is permitted in respect of ____ accounts.
a) NRO
b) NRE,FCNR
c) all
d) No, not permitted.
ANSWERS
1.
a 2.
a 3.
b 4.
b 5.
c 6.
c 7.
d 8.
a 9.
a 10. d
11. b 12. c 13. d 14. a 15. a 16. b 17. d 18. c 19. c 20. a
21. b 22. b 23. c 24. a 25. b 26. c 27. c 28. c 29. a 30. a
31. a 32. a 33. c 34. b 35. a 36. d 37. d 38. a 39. a 40. b
41. c 42. d 43. a 44. d 45. b 46. c 47. a 48. a 49. b 50. a
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FOREIGN EXCHANGE
(Prepared by Shri G.V.Rao, Manager (Training))
1.
NRI status is derived from

A Residential status
C Both the above
B
D
Citizenship/origin of a person
None of the above
2.
Who among the following is a PRI (Person resident in India)?

A An IBO of SBI leaving the country B A student staying abroad for the
just now
2nd year.
C A foreigner who stayed in India
D All the above.
for 8 months in the previous year.
3.
OCBs (Overseas Corporate bodies) are

A Indian firms in which majority
B
stake was held by NRIs
C Any firm in which ownership of
D
NRIs is atleast 60%.
Any firm in which majority stake

was held by NRIs
foreign firm in which ownership
of Indians is atleast 60%
4.
OCB (Overseas Corporate Body) is permitted to open

A NRE account only
B FCNR account only
C Both the above
D None of the above
5.
The main difference between NRI and NRO account is

A Repatriability of funds
B Nature of accounts
C Both the above
6.
A foreign national of PRI status

A Can open a NRO account like a
resident Indian
C He can open both the accounts
He should open only NRE account
He cant open any account
7.
Which of the following is not true about NRO account?

A NRO account can be opened
B NRO account can be opened
jointly with resident.
jointly with Non-Resident.
C Nomination facility is available to
D A resident cant operate a NRO
NRO account holders.
account based on a POA.
8.
Which of the following is not true about NRO account?

A Account holder can deposit any
B Legitimate income earned by NRI
convertible foreign currency
in India can be credited to NRO
brought in by him through legal
account.
means.
C The NRO account holder can
D International credit card
repatriate his current income.
payments cant be made by debit
to NRO a/c
9.
A NRI can repatriate balance in his NRO account for bonafide purposes up to
A USD one million for FY
B USD 0.1 million for FY
C USD 10 million for FY
D Cant be repatriated.
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10.
A resident POA holder can operate on the NRO account of NRI for
A All local payments in rupees
B For transfer of amount to other
including payments for eligible
NRO accounts
investments.
C Make gift to a resident on behalf
D All the above.
of the NRI
11.
A person having a overdraft facility became NRI. Then,

A The OD should be closed
B The OD may be allowed to
immediately.
continue subject to repayment
from domestic sources alone.
C The OD may be allowed to
D Before leaving for foreign country,
continue subject to repayment
the account should be closed.
either from domestic sources or
legitimate inward remittances.
12.
NRE accounts are

A Rupee designated accounts
C POA holder of NRI can open the
account for NRI
B
D
Opened in 6 foreign currencies

Both (a) & (c) are correct
13.
Which of the following is true regarding NRE accounts?

A Balances in the accounts are fully B Balances with interest can be fully
repatriable.
repatriated.
C They are exempted from income
D They are not exempted from any
tax, but not form wealth tax.
tax.
14.
Which of the following is true regarding NRE account?

A Pradeep, NRI from India can
B Pradeep, NRI can open joint
open joint account with Rose
account with his father Rajesh who
Mary of Malaysian passport.
is a resident Indian.
C Pradeep, NRI can open joint
D Both (a) & (c) are correct.
account with Shyam, another
NRI.
15.
Which of the following is false about NRE accounts?

A NRE accounts can be opened as
B Interest rates are totally deSB,CA and STDR with normal
regulated for NRE deposits.
maturity periods as applicable to
domestic deposits.
C Transfers from FCNR accounts is
D All the above.
strictly restricted for NRE
accounts.
16.
Which of the following is not a permitted debit for NRE account?

A Local disbursements
B Transfer to FCNR/NRE accounts of
other people.
C Remittance outside India
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17.
Which of the following is correct about NRE accounts?

A NRE account balances cant be
B FCNs tendered by POA of NRI can
used for payment of charges of
be credited to NRE account of the
International credit cards.
NRI
C POA holder of NRE account cant
D All the above.
make gifts on behalf of the NRI
18.
Upon return to India, the NRE account of a NRI is

A Is redesignated as resident rupee B Converted into RFC (HCD) deposit.
account
C Either of the two at the option of D Can be continued as NRE account.
the depositor.
19.
Upon return of NRI, the fixed deposit in NRE account

A Will be converted into resident
B Can be continued as NRE account
account and will earn applicable
till the date of maturity and as per
deposit rates to domestic deposits
NRE deposit rates
C Will be converted into resident
D None of the above
account but continue to earn NRE
rates if the same is continued till
the date of maturity
20.
Which of the following is true regarding FCNR(B) deposit scheme?

A They are 6 foreign currency
B They are foreign currency
designated accounts in the form
designated term deposits with
of STDR,SB,CA etc
maximum maturity period is five
years irrespective of the currency.
C The interest income from these
D Recurring deposits can be accepted
accounts is not free of tax.
under FCNR(B).
21.
The designated currencies for opening FCNR(B) are

A USD,Euro,Pound Sterling,
B USD,Euro,Pound Sterling, Japanese
Japanese Yen, Canadian Dollar
Yen, Canadian Dollar and
and Australian dollar
Singapore dollar
C USD,Euro,Pound Sterling,
D USD,Euro,Pound Sterling, Japanese
Japanese Yen, Singapore Dollar
Yen, Canadian Dollar and German
and German Duetchmark
deutchmark.
22.
Which of the following is not a permitted mode to open FCNR(B) account?

A By a transfer of funds from
B By transfer of funds from existing
existing NRE accounts.
FCNR(B) account.
C By transfer of funds from NRO
D With funds received by debit to the
accounts.
account of non-resident bank
maintained with authorized dealer
in India.
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23.
Which of the following is true regarding FCNR(B) accounts?

A All credits permitted in NRE
B All debits permitted in NRE
accounts are also permitted in
accounts are not permitted in
FCNR(B) accounts.
FCNR(B) deposits as well.
C The maturity proceeds of the
D Only (b) & (c) are true.
FCNR(B) deposit can not be
remitted to third parties outside
India.
24.
Which of the following is true regarding maturity proceeds of FCNR(B) deposit

scheme?
A The maturity proceeds will be
B TT buying rate will be offered to
paid in the same designated
the depositor for converting the
currency and the depositor cant
maturity proceeds into Rupees.
convert it into the currency of his
choice.
C Interest is payable quarterly on
D All the above.
FCNR(B) deposit as per the choice
of the depositor.
25.
Interest on FCNR(B) deposits will be paid

A Half yearly alone.
B
C
As per individual banks direction.
Interest can be credited into NRO

account of the depositor.
Based on 365 days per year.
26.
Which of the following is true regarding the interest on FCNR(B) deposits.

A With compounding irrespective of B 1% additional interest can be paid
period of deposit.
to SBI staff with NRI status within
RBI ceiling.
C Compounding will be done on half D All the above.
yearly basis.
27.
Which of the following is true regarding Savings Plus scheme to NRI

customers?
A The MOD component should not
B Domestic TDR rate of interest is
exceed 3 years.
offered to MOD component.
C The minimum deposit in NRE SB
D None of the above
account should be Rs.5,000/- and
the min MOD sweep should be
Rs.1,000/-
28.
Which of the following is false regarding Dollar premium account?

A It has a forward cover
B The period of deposit is 3 years
only.
C Minimum deposit is the same as
D All the above.
in case of FCNR(B) deposits.
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29.
Which of the following statement is true regarding loans to NRIs against

deposits?
A No loans can be granted to third
B The loan amounts can be fully
parties against NRI deposits.
repatriated.
C The loan amount can be credited D The loan can be repaid out of local
to NRE account of the NRI
rupee resources in the NRO
account of the NRI.
30.
Which of the following is true regarding loans in foreign currencies to NRIs?

A Documents can be executed by
B Loan proceeds can be used for
POA holder
investments in India.
C Repayment of the loan can be
D Loans can be sanctioned against
made from NRO account.
third party deposits.
31.
For remitting sale proceeds on account of sale of immovable property, NRI has
A To be in possession of the
B To lock in the sale proceeds for a
property for a minimum period of
minimum period of 3 years.
3 years.
C To sell 3 properties only in a
financial year.
32.
In case of remittance of sale proceeds of immovable property purchased by NRI

with foreign exchange, the sale proceed are restricted to
A USD 2 million for FY
B 2 properties in a FY
C 2 years lock in period is
stipulated.
33.
A student with NRI status can receive from close relations in India, a foreign
remittance of
A USD 100,000 for maintenance
B USD 200,000 for maintenance
C USD 50,000 for maintenance
D He cant receive
34.
SBI Express is a
A A remittance product for US & UK
NRIs
C A remittance product for US NRIs
alone
A remittance product for Gulf NRIs
None of the above.
35.
SBI Express is presently being facilitated by

A GLS (Global Link Services)
B GMU (Global Markets Unit)
C OB,Mumbai
D Exchange companies in Gulf
36.
Which of the following is true about SBI Express?

A In case of SBI customers, it is
B The maximum amount of
directly credited to the account.
remittance is Rs.10,00,000/- per
transaction.
C The maximum limit for
D All the above.
professionals to remit under the
scheme in a calendar year is
Rs.40 lacs.
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37.
SBLC, MASULIPATNAM
SBI Express Remit is a product for

A US & UK NRIs
C UK NRIs alone
B
D
US NRIs alone
None
38.
The remittance facility offered to Singapore NRIs is

A S-Remit
B e-Remit
C Express remit Singapore.
D None
39.
RNOR (Resident but not ordinarily resident) is defined

A Under FEMA Act
B Under IT Act
C Defined by RBI
D Defined by ministry of finance.
40.
A NRI after coming back to India got his NRE accounts converted into RFC
accounts. When he becomes NRI again
A The RFC accounts will become
B They will continue as RFC
NRE accounts
accounts.
C Either of the above as per his
D None of the above
choice
ANSWERS
1. c
2. c
3. c
4. d
5. a
6. a
7. d
8. d
9. a
10. a
11. c
12 a
13. b
14. c
15. d
16. d
17. c
18. c
19. c
20. b
21. a
22 c
23. a
24. b
25. b
26. b
27. c
28. b
29. d
30. c
31. d
32 b
33. a
34. b
35. a
36. d
37. a
38. b
39. b
40. a
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Securities, Safe Custody & Safe Deposit Lockers (Compiled by Shri

L.J.Meclarin)
1.
Safekeeping of Shares, Bonds, Govt Securities, TDRs, Magnums etc entrusted

by customers to the Bank is known as ____________
a) Safe Custody
b) Safe Deposit
c) Securities Custody
d) Safe Deposit Locker
2.
Relationship between Customer & Banker in case of Safe Custody is_____

a) Debtor & Creditor
b) Bailer & Bailee
c) Lessor & Lessee
d) Pledgor & Pledgee
3.
Scrips accepted under Safe Custody are entered in__________

a) Safe Deposit Locker register
b) Locker Access Register
c) Safe Custody Ledger
d) Ex-Custody Register
4.
Safe Custody/ Security are balanced once in__________

a) A month
b) A Quarter
c) Half Year
d) An Year
5.
Bearer Bonds are held in Joint Custody of _______

a) Manager (Accounts)& Manager
b) Manager (Accounts) & BM
(Cash)
c) Manager (Cash) & Branch
d) Single Custody of Manager
Manager
(Accounts)
6.
When Scrip is withdrawn for renewal, it will be entered in___________

a) Safe Deposit Locker register
b) Branch Document Register
d) Securities Ex-Custody Register
7.
When a Govt Security is sent to PDO for interest collection, it will be entered
in:
a) Interest realized on securities
b) Interest Not Collected Register
register
8.
When securities are sent for sale under instructions from the customer, they
are entered in____________
a) Securities and Shares Purchase & b) Branch Document Register
Sale Register
9.
Which of the following statements is correct?

a) Safe Custody A/c in the name of
b) ) Safe Custody A/c in the name of
Minor can be opened only in
Minor can not be opened
respect of TDR and not other
securities
c) Safe Custody A/c in the name of
d) Safe Custody A/c in the name of
Minor can be opened in respect of
Minor can be opened only in resall types of securities.
pect of securities other than TDR.
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10.
In case of joint A/cs under Safe Custody, _______must be obtained regarding

delivery either to the account holders jointly or to one or more of them or the
survivor(s).
a) COS 49
b) COS 139
c) COS 141R
d) COS 339
11.
_______________is issued to the depositor as acknowledgement of scrips for

safe custody.
a) COS 49
b) COS 139
c) COS 141R
d) COS 339
12.
Under Safe Custody, _________ is required at the time of delivery of scrips to

the depositor.
a) COS 49
b) COS 339
c) COS 141R
d) COS 139
13.
In case of loss of Safe Custody Receipt( COS139), ______is required to be

obtained before delivery of the scrips held under Safe Custody.
a) Indemnity
b) ) Affidavit
c) Stamped letter
d) Simple unstamped letter
14.
Which of the following statements is not correct in the case of Memorandum of

Securities (COS 339)?
a) It is issued to the depositor of
b) It is a mere narration of the fact
securities under Safe Custody.
of the deposit on a particular date.
c) Indemnity is required in case it is d) No indemnity is required in case it
lost.
is lost.
15.
Which of the following statements is correct in respect of Memorandum of

Securities?
a) Memorandum of securities can be b) Memorandum of securities can be
issued only in respect of
issued only in respect of safe
securities.
custody
c) Memorandum of securities can be d) None of the above.
issued in respect of both security
&safe custody accounts
16.
Safe custody receipt is issued _________

a) Only in respect of Safe custody
b) In respect of both securities and
accounts.
safe custody.
c) Only in respect of deposit of
government securities.
17.
Which of the following statements is not correct in respect of delivery of safe

custody scrips?
a) Safe Custody scrips must be
b) Scrip must be delivered against
delivered to the depositor only
depositors acknowledgement on
COS 49
c) The depositors signature on COS d) Scrip can be delivered to
49 must tally with that of in our
depositors representative against
records.
his acknowledgement on COS 49.
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18.
Nomination for Safe Custody & Safe Deposit Articles is available under Section
____________
a) 45ZC of Banking Regulation Act.
b) 42 of Banking Regulation Act
c) 24 of Reserve Bank of India Act
d) Nomination is not available.
19.
How many individuals can be nominated under Safe Custody& Safe Deposit
Articles facility?
a) One individual
b) Two individuals
c) Three individuals
d) Any number
20.
In case of death of sole depositor, where nomination is available, Safe Custody

scrips may be returned to the nominee after obtaining.
a) Death certificate
b) Identification of nominee.
c) Both the above
d) Simple letter of claim with death
certificate.
21.
Which of the following statements is not correct in respect of settlement of

claims under Safe Custody ?
a) In case nomination is not
b) If all the legal heirs do not join in
available claim can be settled on
executing the indemnity or if there
affidavit cum indemnity basis
is a dispute between them, the
irrespective of value.
Bank can insist on suitable legal
representation.
c) Since Indian Succession Act
d) If Nomination is not available the
covers debts & securities, the
claimants will be advised to
scrips held under Safe Custody
proceed to
A/c can be delivered against
succession certificate.
the court of law.
22.
Securities constitutes __________ which are offered as security for obtaining

any loan from the bank.
a) NSCs, KVPs, IVP, Shares
b) TDRs, STDRs
c) Immovable property
d) All the above except c
23.
Which of the following securities are kept under joint custody ?

a) NSCs, KVPs, IVPs, Shares
b) TDRs/STDRs
c) Only NSCs
d) Only KVPs, IVPs & Shares
24.
Scrips accepted as security are entered in _______

a) Securities Ledger
b) Securities Register
c) Both Securities Ledger& Register
d) Miscellaneous Security Register
25.
TDRs/STDRs accepted as security for advance are entered in ______

a) Securities Ledger.
b) Securities Register.
c) Term Deposit Joint Custody
d) Miscellaneous Security Register.
Register.
Life Insurance Policies accepted as security for advance should be entered in__
a) Securities Ledger.
b) Securities Register.
c) Term Deposit Joint Custody
d) Miscellaneous Security Register
Register.
26.
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27.
In the case of death of a customer having a security A/c, which of the

a) Bank can not continue to collect
b) Bank can continue to collect the
the interest and credit it to his
interest and credit it to his Loan
loan A/c .
A/c as the Banks Agency is
coupled with interest.
c) Bank can continue to collect the
d) Bank can continue to collect the
interest but park it in Sundry
interest and issue Bankers
deposit Account.
Cheques.
28.
In the case of death of a customer having a Safe Custody A/c, which of the
a) Bank cannot continue to collect
b) Bank can continue to collect the
the interest as the mandate will
interest and credit it to his Loan
lapse on the death of the
A/c as the Banks Agency is
customer
coupled with interest.
c) Bank can continue to collect the
d) Bank can continue to collect the
interest but park it in Sundry
interest and issue Bankers
deposit Account.
Cheques.
29.
Safekeeping of articles other than parcels received on account of LSC bills,

belonging to customers is ____
a) Safe Deposit Article
b) Safe Deposit Locker
c) Safe Custody
d) All the above
30.
Relationship between Customer & Banker in case of Safe Deposit Article is

a) Lessor & Lessee
b) Bailer & Bailee
c) Principal & Agent
d) Debtor & Creditor
31.
Which of the following statements is not correct in respect of Safe Deposit

Articles?
a) A receipt on COS 138 is issued to b) The same is recorded on the
the depositor stating Received a
packet / box also.
sealed cover / box the contents of
which are unknown but said to
contain
c) In case of loss of receipt, delivery d) In case of loss of receipt, delivery
of the articles can be made only
of the articles can be made
against indemnity.
without indemnity.
32.

Articles?
a) Nomination facility is available.
b) Only one individual can be named
as nominee.
c) Nomination is not available in
d) Nomination facility is not available
case of joint accounts with
either in the case of single
survivorship benefit as in case of
account or joint account
lockers.
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33.
Relationship of the Banker and the hirer in case of Safe Deposit Llockers is ___
a) Licensor & licensee, with bank
b) Lessor & Lessee
holding general lien.
c) Bailer & Bailee
d) Principal & Agent
34.

Lockers?
a) Lockers can be allotted only to -b) Locker cannot be opened in the
Individuals either singly or jointly.
name of a minor neither as a
single nor ajoint account
c) Locker can be allotted in the
d) Locker cannot be allotted in the
name of blind/visually impaired
name of blind/visually impaired
person(s), literate or illiterate,
person(s).
single or joint operation with
other person permitted.
35.

Lockers?
a) A locker can also be rented out to b) Power of Attorney holder can
a Non Resident.
operate the Locker but cannot
surrender the Locker.
c) In case of Joint A/c (E or S),
d) ) In case of Joint A/c (E or S),
locker can be surrendered and
locker can be surrendered and the
the account closed by either of
account closed by both of them
them .
only.
36.
Which of the following statements is correct in respect of Safe Deposit

Lockers?
a) Lockers allotted on first-comeb) Lockers can be allotted as per
first-served basis for applicants
BMs discretion
complying with the KYC norms.
c) 80% of the lockers to be issued
d) 20% may be issued as per BMs
on First come first basis
discretion
37.
As per New Clause incorporated in Locker Agreement which of the following

statements is not correct in respect of break opening of locker?
a) The Bank has the right to break
b) The Bank has the right to Break
open non operated lockers for
open non operated lockers for 3
one year belonging to the High
years for medium risk category
Risk category customers
customer
c) The Bank has the right to Break
d) The bank has no right to break
open non operated lockers of
open the locker if the rents are
above category after giving a 15
paid regularly.
days notice, even though the
locker rent has been paid
regularly.
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38.
SBLC, MASULIPATNAM
Which of the following doesnt form part of

case of non-payment of rent
a) Reminder sent on due date if no
b)
balance in the A/c
c) Notice on COS 405 after 6 months d)
& Notice on COS 406 after 1 year
the Procedure to be followed in

If not paid, another reminder
after 3 months
Locker allotment can be cancelled
without giving any notice if the
rent becomes due upto one year.
39.
Which one of the following doesnt form part of the Procedure to be followed
in case of break open of the locker?
a) Locker should be broken open in
b) Inventory of contents
presence of a committee, which
(Panchnama) to be prepared in
may Comprise of Notary Public,
presence of witnesses
Banks Advocate and 5
independent witness
c) Contents to be valued by an
d) Contents are kept as a Safe
approved Govt Valuer and kept on
Custody item under single
record
custody of the Accountant
40.
Keys of vacant and surrendered lockers should be kept with____

a) Single custody of Cash Officer
b) Joint Custody of Accountant &
Cash Officer
c) The person other than person
d) The Manager (PBD)
holding custodian (master) key
41.
Which one of the following statements is not true in the case of Safe deposit
lockers?
a) Nomination is available in case of b) Nomination facility is available
joint accounts with survivorship
under Sec 45 ZE of Safe Deposit
benefit.
Lockers.
c) Only one individual can be named d) In case of Joint operation without
as nominee in case of locker in
survivorship benefit, each locker
single name.
holder can nominate a person.
42.
Which of the following is not true in the case of deceased claim settlement in
respect of Safe deposit Lockers?
a) In case nomination is not
b) If all the legal heirs do not join
available items in Safe Deposit
in executing the indemnity or if
Locker of a deceased person may
there is a dispute between them,
be delivered to legal heirs on
the Bank can insist on suitable
affidavit cum indemnity basis.
legal representation.
c) If there is dispute, Safe Deposit
d) If there is dispute, Safe Deposit
Lockers standing in the name of a
Lockers standing in the name of a
deceased depositor can not be
deceased depositor can be
delivered but deposited in the
delivered only against production
court of law for settlement of the
of a probate or a letter of
claim.
administration.
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ANSWERS
1.
a 2.
b 3.
4.
5.
c 6.
d 7.
a 8.
a 9.
a 10. c
11. b 12. d 13. a 14. c
15. c 16. a 17. d 18. a 19. a 20. c
21. d 22. d 23. b 24. c
25. c 26. d 27. b 28. a 29. a 30. b
31. d 32. d 33. a 34. d 35. c 36. a 37. d 38. d 39. d 40. c
41. a 42. c
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Advances (Compiled by Shri N.V.R.S.Subba Rao)

1.
Base rate system replaced BPLR w.e.f

a) 01.07.2010
c) 30.09.2010
b) 31.03.2010
d) None of these
2.
CRA is to be worked out in respect of advances of Rs._______ and above.

a) 10 lacs
b) 15 lacs
c) 20 lacs
d) 25 lacs
3.
Lending rates need not be linked to the Base Rate in respect of the following
a) DRI Advances
b) Loans to Banks Employees
c) Loans to depositors against their d) All of these
own deposits
4.
Working capital facility is generally sanctioned for _________ period.

a) 1 year
b) 2 years
c) 3 years
d) 4 years
5.
While reviewing a limit under Traders Easy loan scheme if the working capital
limit is assessed at less than the existing limits the excess amount are to be
repaid within
a) 30 days
b) 60 days
c) 90 days
d) 360 days
6.
In the case of Traders Easy loan if the working capital limit is assessed at less
than the existing limits and if the excess amount can not be repaid within 90
days, a DL has to be carved out for the excess amount repayable within
a) 3 months
b) 9 months
c) 12 months
d) 24 months
7.
Debt Restructuring Mechanism for SMEs scheme covers fund/non-fund based

outstandings upto
a) 1 Cr
b) 5 Cr
c) 10 Cr
d) 15 Cr
8.
CDR stands for

a) Central Debt Register
c) Corporate Debt Refinance
b) Collateral Debt Repayment

d) Corporate Debt Restructuring
The expansion of SBI SMILE is

a) SBI Small and Medium Industries
Loan as Equity
c) SBI Small and Medium Industries
level playing equity
b) SBI Small and Micro Industries

Liquidity equity
d) SBI Small and Micro Interest-free
loan as Equity
9.
10.
Under SBI SMILE scheme assistance is provided to micro and small scale
industries up to an amount of
a) 10 lacs
b) 50 lacs
c) 100 lacs
d) 200 lacs
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11.
Under SME Smart Score, the age of the borrower should be below ___
years.
a) 60
b) 65
c) 66
d) 70
12.
As per IRAC norms, provision is made on ___________ accounts.

a) Written off
b) Special Mention
c) NPA
d) None of these
13.
What is the extent of funds that a company

accounts are restructured?
a) 5% of the money that banks will b)
forego
c) 15% of the money that banks
d)
will forego
should pay upfront when its

10% of the money that banks
will forego
None of these
14.
The facility sanctioned under SME Open Term Loan (OTL) remains valid for
a) 3 months
b) 6 months
c) 9 months
d) 12 months
15.
The following committee set up by RBI has recommended financing SHGs.

a) Talwar
b) Rangarajan
c) Kalia
d) Ghosh
16.
Under SBI Maxgain the Minimum loan limit is

a) Rs 5 lacs
b) Rs 10 lacs
c) Rs 15 lacs
d) No minimum prescribed
17.
SBI Maxgain is opened in the form of

a) Demand Loan
c) Overdraft
b) Term Loan
d) None of these
18.
The minimum loan amount under SBI Express Credit

a) Rs 5,000/b) Rs 10,000/c) Rs 25,000/d) Rs 50,000/-
19.
Loan granted exclusively on the basis of receivables is under:

a) Arthias Plus
b) Shoppe Plus
c) Dairy Plus
d) School Plus
20.
Under revised definition of priority sector retail transporter

a) Transporter having 10 vehicles
b) Owner having
including the one financed by us
the most
c) Owners having any No of
d) Owner having
vehicles the cost of which does
a max of Rs 3
not exceed Rs 2 Crs
21.
is defined as :
10 vehicles at
10 vehicles up to
Crs
As per MSMED Act 2006, Medium (manufacturing) Enterprises will have

maximum investment in plant and machinery with original cost not
exceeding:
a) Rs 2 Cr
b) Rs 5 Cr
c) Rs 10 Cr
d) Rs 25 lacs
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22.
23.
SBLC, MASULIPATNAM
Housing loan for SHG is

a) Tribal Plus
c) Arthias Plus
b) Sahayog Nivas
d) SBI Optima
Mortgage is defined in
a) Transfer of property Act
c) Negotiable Instrument Act
b) Indian Contract Act

d) SARFAESI ACT
24.
Which of the following cannot be attached under SARFAESI ACT?

a) An apartment
b) An individual house
c) Crop
d) Agricultural lands
25.
Which of the following security cannot be created as equitable mortgage?

a) Inventory
b) Receivables
c) Crops
d) All of these
26.
Open Term Loan (Manufacturing Sector) and Open Term Loan (Services
Sector) are now merged into ______
a) SME-Open Term Loan
b) SME-Care
c) SME-Help
d) SME-Unfixed
27.
An officer of _____ scale is authorised to issue notices under SARFAESI Act.

a) Scale III
b) Scale IV
c) Scale V
d) Any Officer
28.
Prime lending rate is offered to:

a) High Networth customers
c) Individuals
b) Companies
d) Firsts class borrowers
29.
Among which of the following accounts cash can be withdrawn by Card?

a) SME Credit Card
b) SHG Gold Card
c) Artisan Credit Card
d) None of these
30.
What is the maximum amount that can be sanctioned under SBI Maxgain?
a) Rs.50 lacs
b) Rs.100 lacs
c) Rs.250 lacs
d) No maximum limit
31.
Which among the following ratios is helpful in ascertaining whether the unit
will be able to repay its debts?
a) Current ratio
b) Debt service coverage ratio
c) Assets turnover ratio
d) Debt equity ratio
32.
Claims up to how much amount can be settled through Lok Adalats

a) Rs 10 lacs
b) Rs 20 lacs
c) Rs 100 lacs
d) No ceiling
33.
Funds in the balance sheet refer to:

a) Cash
c) Bank balance
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THE WINGS
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34.
The maximum number of houses/flats/plots will be restricted to _____ under

CRE (Home Loans) over and above the two units permissible under Home
Loan Scheme.
a) 6
b) 2
c) 4
d) 3
35.
Limit in loans against LIC policy is ___________ of the policy.

a) 90% of value
b) 65% of market value
c) 95% of surrender value
d) 65% of surrender value
36.
Approval from controlling authority is taken for issuing Bank guarantee for
more than:
a) 12 months
b) 18 months
c) 24 months
d) No such stipulation
37.
Who is to issue registration certificate to set up Asset Reconstruction

Company?
a) Companies board
b) RBI
c) SEBI
d) ARCIL
38.
Cash budget method is used for assessing WC requirement in case of:

a) Seasonal Industries/construction b) C & I units
companies
c) SSI units
d) All of the above
39.
The primary security taken under commodity backed warehouse receipt

financing:
a) Warehouse receipt of
b) Goods of various parties
warehouses managed by
hypothecated
MCX/NBHC and CwC/Swc
c) No primary security taken only
d) None of these
collateral taken
40.
Registration of charge is done under which section of companies act?

a) Sec 125
b) Sec 135
c) Sec 146
d) Sec 131
41.
Bridge finance is :
a) Interim loan given by banks
pending disbursement of term
loans by FIs
c)
Loan sanctioned for construction

of bridges
b) Loan for bridging the gap

between working capital
sanctioned and shortfall in
disbursement
d) Working capital loan to meet
long term requirements
42.
Loans to SSI are collateral free up to how much amount?

a) 1 lac
b) 5 lacs
c) 10 lacs
d) 3 lacs
43.
Priority Sector lending pertaining to Housing loans is reckoned up to Rs.____

a) 10 lacs
b) 25 lacs
c) 25 lacs
d) Any amount can be reckoned
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44.
SBLC, MASULIPATNAM
Expand CBLO
a) Collective Borrowings & Lending
Obligations
c) Collateralised Bills & Liquid
obligations
b) Collateralised Bills & Lending

Obligations
d) Collateralised Borrowing &
Lending Obligations
45.
Security to be obtained in respect of Student loans up to Rs 4 lacs

a) No security
b) Third Party Guarantee(TPG)
c) Tangible Collateral security
d) TPG or Tangible collateral
security
46.
In the case of Rent Plus scheme, the property can be located at

a) Only Metro
b) Only Rural
c) Only Urban area
d) All of these
47.
Which of the following is a loan processing cell?

a) LCPC
b) CPPC
c) RACPC
d) CAC
48.
For recovering Bank can proceed in the following order

a) First SARFAESI and next DRT
b) First DRT and next SARFAESI
c) Can proceed simultaneously
d) None of these
under both SARFAESI and DRT
49.
What is the product in which Term loan is sanctioned for purchase of

vehicles and Cash Credit for financing receivables
a) Vehicle Plus
b) Transport operator
c) Auto loan
d) Transport Plus
50.
Funding pattern under SGSY scheme between Central Govt / State Govt is in
the ratio of :
a) 75:25
b) 50:50
c) 25:75
d) 90:10
51.
What is the limit for new car loan?

a) 20 lacs
c) 50 lacs
b) 30 lacs
d) No limit
Rule in Claytons case is applicable to

a) DL & TL accounts
c) Both a & b
b) CC & OD accounts
d) None of these
52.
53.
Advances against gold ornaments are granted by way of

a) Cash Credit
b) Term Loan
c) Cash Credit & Term Loan
d) Demand Loan
54.
Student loan for studies abroad can be sanctioned up to

a) 10 lacs
b) 15 lacs
c) 20 lacs
d) 25 lacs
55.
Committee on flow of credit to Agriculture is

a) Rangarajan committee
b) Kalia committee
c) S.L.Kapur committee
d) R.V.Gupta Committee
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56.
Nayak Committee recommendations are applicable to up to an amount of

a) 5 lacs
b) 50 lacs
c) 5 Crs
d) 50 Crs
57.
Lok Adalats are covered under the Act

a) Banking Regulation
b) RBI
c) COPRA
d) Legal Services Authorities
58.
What is the maximum amount that can be sanctioned under Transport Plus
for Corporates?
a) 1 crore
b) 5 crores
c) 10 crores
d) 20 crores
59.
How many vehicles the transport operator should have under Transport Plus?
a) 10
b) 20
c) 30
d) 35
60.
Which of the following constitute the revised norms for taking over and
change of management of the business of a defaulting borrow by Securitisation or Reconstruction companies(SC/RC) to help them realize their dues
a) Independent panel of
b) SC/RC can take over a Company
professionals with technical,
when the dues are not less than
finance and legal backgrounds
25% of the assets owned by the
have to look at the proposal
borrower.
before the take over
c) Take over is possible where the
d) a, b & c are correct
secured creditors hold not less
than 75% of the assets owned
by the borrower
61.
The ceiling on loan amount in the case of SBI Realty

a) 1 Cr
b) 2 Cr
c) 5 Cr
d) 10 Cr
62.
In respect of infrastructure lending identified as sub-standard will attract a

provision of
a) 10%
b) 15%
c) 20%
d) None of these
63.
RBI has advised that no collateral security should be insisted for SME
advances up to Rs .
a) 5 lacs
b) 10 lacs
c) 25 lacs
d) 50 lacs
64.
Which of the following scheme is not withdrawn

a) Teacher Plus
b) Prasasan plus
c) SBI Home Plus
d) Easy Travel Loan
65.
Maximum loan that can be sanctioned to Non Residents/FCNR(B) is

a) 10 lacs
b) 50 lacs
c) 100 lacs
d) No maximum
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66.
Under SBI Loan to Affluent Pensioners what is the maximum amount that
can be sanctioned to pensioner and family pensioner respectively
a) 3 lacs and 1.50 lacs
b) 1 lac and 50,000/c) 2 lacs and 1 lac
d) 4 lacs and 2 lacs
67.
EMI should not exceed by ____ of pension in Affluent pension loan scheme.
a) 50%
b) 40%
c) 25%
d) 10%
68.
Hypothecation is defined in ____________

a) Transfer of Property Act
b) Negotiable Instruments Act
c) Indian Contract Act
d) SARFAESI Act
69.
Up to what amount of loan no collateral security need to be taken under

SGSY for individuals and groups respectively
a) 1 lac and 10 lacs
b) 50,000 and 5 lacs
c) 1.5 lacs and 7 lacs
d) 2 lacs and 10 lacs
70.
In the case of residential complexes what is the permissible moratorium

period for the 14th floor of an apartment.
a) 6 months
b) 12 months
c) 18 months
d) 24 months
71.
Which of the following is true with regard to CRE Home Loans

a) Loans will not be offered as OD
b) Exposure for the third house
onwards will be classified as a
CRE Home Loan
c) Interest is 0.25% more than the d) a, b & c are correct
normal rate
72.
Within how much period claim should be lodged with CGTMSE after account
becoming NPA
a) 3 months
b) 6 months
c) 9 months
d) 12 months
73.
The maximum amount that can be sanctioned against security of shares is

a) 5 lacs
b) 20 lacs
c) 50 lacs
d) No limit
74.
The charge that the Bank gets in respect of supply bills is

a) Set-off
b) Hypothecation
c) Mortgage
d) Assignment
75.
The maximum Gold Loan amount that can be sanctioned under Per segment
a) 1 lac
b) 5 lacs
c) 10 lacs
d) No limit
76.
On attaining majority a minor can opt out of the partnership within _____
a) 6 months from the date of
b) 12 months from the date he is
attaining majority
declared as a partner
c) 3 months from the date of
d) None of these
admission into the partnership
firm as partner
100 | P a g e
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77.
If the validity period is not mentioned in a Bank Guarantee, it is _____years

and _____years/months if the beneficiary is Government and others
respectively
a) 10 and 1 years
b) 20 and 2 years
c) 30 and 3 years
d) 3 years and 18 months
78.
A Banks aggregate Capital market exposure shall not exceed ______% of

the net worth of the bank on a solo and a consolidated basis
a) 5%
b) 20%
c) 40%
d) 50%
79.
What is the margin prescribed for advances against shares granted for the
purpose of acquiring new shares?
a) 50%
b) 40%
c) 33 1/3%
d) 75%
80.
An overdraft is granted to A against shares in the joint names of A & B.

Which of the following documents is to be obtained?
a) Form A
b) Form A1
c) Form A2
d) None of these
81.
For which of the following, there no limitation period?

a) Goods/Securities pledged to the
b) Guarantee
Bank
c) Mortgage
d) None of these
82.
The committee which recommended that MPBF be made optional is

a) Kannan Committee
b) Nayak committee
c) Tandon Committee
d) Chore committee
83.
As per Bank loan policy, repayment period for TLs should not exceed ____
normally
a) 6 years
b) 9 years
c) 8 years
d) 10 years
84.
What is the maximum amount of loan that can be granted under Rent plus
scheme?
a) 1 Cr
b) 5 Cr
c) 10 Cr
d) 20 Cr
85.
Up to what amount DRT has power to seize the assets

a) 5 cr
b) 10 Cr
c) 20 Cr
d) No limit
86.
Which risk is not covered under CRA (new model)

a) Financial
b) Business
c) Industry
d) Market
87.
Charge created under Rent Plus scheme is

a) Hypothecation
b) Mortgage
c) Pledge
d) Assignment
101 | P a g e
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88.
Under Transport plus the following facility is given

a) Term Loan
b) Cash Credit
c) Term Loan and Cash credit
d) Term loan, Cash credit and BG
89.
Financial Follow up reports are to be obtained for advances of Rs____ &

above
a) 1 Cr
b) 5 Cr
c) 20 Cr
d) 50 Cr
90.
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/-
91.
A company has its registered office in Chennai and factory in Bangalore. It

availed a bank loan in Mumbai. Equitable mortgage of companys immovable
property located at Chennai is to be created at ______
a) Chennai
b) Mumbai
c) Bangalore
d) Any notified centre
92.
The maximum number of partners in a partnership firm is provide in which act

a) Companies Act
b) Partnership Act
c) Indian Evidence Act
d) None of these
93.
What is the provision to be made towards the guaranteed portion on an

advance backed by CGTMSE?
a) 100%
b) 75%
c) 50%
d) NIL
94.
PMEGP Scheme has been launched by merging PMRY with which scheme
a) SGSY
b) SLRS
c) SRMS
d) NREGP
95.
Which is the Single National level Nodal Agency for implementation of PMEGP
a) SIDBI
b) NABARD
c) KVIC
d) KVIB
96.
Income ceiling under PMEGP is Rs _______p.a

a) Rs 50,000/b) Rs 1,00,000/c) Rs 2,00,000/d) No ceiling
97.
Margin money (subsidy) under PMEGP for General Category is ____% and
____% for urban and rural areas respectively
a) 5 & 10
b) 10 & 15
c) 15 & 25
d) 25 & 35
98.
Age stipulation for PMEGP is above ______years

a) 18
b) 21
c) 25
d) 30
99.
What is the target for women in SGSY

a) 25%
c) 50%
b) 40%
d) None of these
102 | P a g e
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100.
SBLC, MASULIPATNAM
Which of the following schemes have been merged to form SGSY?

a) IRDP & GKY
b) DWCRA & Trysem
c) MWS & SITRA
d) All of these
101. Which one of the following is not Tier-II Capital?

a) Statutory Reserve
b) Hybrid Debt Instruments
c) Subordinated Debts
d) All of these
102. Which one of the following is Tier I capital
a) Paid up capital
b) Free Reserve
c) Share premium reserve
d) All of these
103. Tier II capital shall not be more than _____% of total capital
a) 100
b) 50
c) 25
d) 10
104. Tier-II capital shall not be more than _______% of Tier-I capital
a) 50%
b) 100%
c) 10%
d) None of these
105. The risk weight of advance guaranteed by the ECGC/CGTMSE is
a) 10%
b) 20%
c) 30%
d) 50%
106. The risk weight of advance secured by LIC policy is
a) 10%
b) 20%
c) 25%
d) 0%
107. Risk weight for Investments in SIDBI/NABARD to meet shortfall in advances
granted to priority sector is _____%
a) 0%
b) 25%
c) 100%
d) None of these
108. In the case of sub standard assets provision on unsecured portion is _____
a) 10%
b) 25%
c) 40%
d) 50%
109. Account in which interest/ instalment has not been paid for ________ days
is treated as Special Mention account
a) 30
b) 60
c) 90
d) None of these
110. Maximum repayment period permissible for a pensioner aged 71 years while
sanctioning a pension loan is
a) 24 months
b) 36 months
c) 48 months
d) 60 months
111. Maximum amount of loan that can be sanctioned to family pensioners
a) 25,000/b) 50,000/c) 75,000/d) 1,00,000/-
103 | P a g e
THE WINGS
SBLC, MASULIPATNAM
112. While sanctioning loan against TDR where none of the depositors are
borrowers of the loan against the same deposit, the following form is to
be obtained.
a) A1
b) A2
c) A3
d) A4
113. If outstandings of loan against shares exceed Rs ______the shares should
be transferred in Banks favour
a) 10 lacs
b) 15 lacs
c) 20 lacs
d) 25 lacs
114. The surrender value of an LIC policy is Rs 10,000/-. How much loan can be
sanctioned?
a) 9,000/b) 9,500/c) 10,000/d) 5,000/115. How much % of face value and accrued interests of an NSC canbe
sanctioned as loan
a) 50%
b) 65%
c) 75%
d) 85%
116. Maximum repayment period allowed for loan under Jai Jawan Pension loan
a) 48 months
b) 60 months
c) 84 months
d) 36 months
117. ____ % margin should be met by pensioner while availing a pension loan?
a) 15%
b) 10%
c) 5%
d) No margin
118. Maximum loan can be sanctioned under Jai Jawan pension loan
a) 1 lac
b) 2 lacs
c) 3 lacs
d) No limit
119. For staff Housing purpose maximum how many months repayment can be
allowed for a Gold loan?
a) 36 months
b) 48 months
c) 50 months
d) 60 months
120. Maximum repayment period of loan sanctioned against shares
a) 24 months
b) 30 months
c) 36 months
d) 60 months
121. ____% of Face value and accrued interest can be sanctioned to staff
members while sanctioning loan against NSCs
a) 65%
b) 75%
c) 90%
d) 100%
122. How much loan can be sanctioned for Affluent pensioners?
a) Rs. 1 lac
b) Rs. 2 lacs
c) Rs. 3 lacs
d) Rs. 4 lacs
123. Minimum loan that can be sanctioned under Xpress Credit is Rs.
a) 24,000
b) 48,000
c) 25,000
d) 50,000
104 | P a g e
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124. Maximum repayment period under Xpress credit

a) 24 months
b) 36 months
c) 48 months
d) 60 months
125. Maximum repayment allowed in the case of Home Plus :
a) 10 years
b) 20 years
c) 25 years
d) 30 years
126. Maximum loan that can be sanctioned under SBI realty
a) 1 Cr
b) 2 Cr
c) 5 Cr
d) 10 Cr
127. Maximum repayment period allowed under SBI Realty
a) 60 months
b) 120 months
c) 180 months
d) 240 months
128. What is the maximum amount that can be sanctioned under Home plus?
a) 5 lacs
b) 10 lacs
c) 15 lacs
d) 20 lacs
129. How many times loans can be sanctioned under SBI Home plus scheme?
a) 1 time
b) 2 times
c) 3 times
d) 5 times
130. Maximum housing loan that would be treated as priority sector advances
a) Rs 5 lacs
b) Rs 10 lacs
c) Rs 15 lacs
d) Rs 25 lacs
131. The maximum amount of loan under SBI student loan scheme for studies in
India/Abroad is Rs.__________.
a) 5 lacs/10 lacs
b) 10 lacs/15 lacs
c) 15 lacs/20 lacs
d) 10 lacs/20 lacs
132. What is the maximum amount that can be sanctioned under SBI Scholar
scheme under List-A
a) Rs 15 lacs
b) Rs 25 lacs
c) Rs 50 lacs
d) No maximum limit
133. Under reverse mortgage loan how much % of the value of the property is
sanctioned?
a) 60%
b) 75%
c) 90%
d) 100%
134. The target group of loans under Sahayog Niwas
a) Tribals
b) High net-worth business people
c) SHGs
d) Cooperative societies
135. Under Sahayog Niwas how much loan per head is sanction for repairs
a) Rs 25,000/b) Rs 50,000/c) Rs 1,00,000/d) Rs 2,00,000/136. What is the minimum amount that can be sanctioned under Home plus?
a) Rs 25,000/b) Rs 50,000/c) Rs 70,000/d) Rs 2,00,000/105 | P a g e
THE WINGS
SBLC, MASULIPATNAM
137. The housing loan that provides overdraft facilities

a) SBI Maxgain
b) Home plus
c) Sahayog Niwas
d) All of these
138. What is the maximum amount that can be financed under Traders Easy
Loan?
a) 1 Cr
b) 2 Cr
c) 3 Cr
d) 5 Cr
139. What is the scheme in which we finance against assignment of future
rentals?
a) Traders Easy loan
b) Rent plus
c) SME Credit Card
d) SME Smart Score
140. What is the maximum amount that can be financed under rent plus?
a) 1 Cr
b) 5 Cr
c) 10 Cr
d) None of these
141. What is the minimum amount that can be sanctioned in School plus?
a) Rs 50,000/b) Rs 1,00,000/c) Rs 1,50,000/d) None of these
142. What is the maximum amount that can be sanctioned in School Plus?
a) Rs 5 lacs
b) Rs 10 lacs
c) Rs 20 lacs
d) None of these
143. Under scoring model what is the minimum score for Doctor plus?
a) 40
b) 60
c) 75
d) None of these
144. How many years of track record is necessary for financing under SME Credit
card?
a) 1 year
b) 2 years
c) 3 years
d) None of these
145. What is the validity period of SME Credit Card?
a) 1 year
b) 2 years
c) 3 years
d) 4 years
146. What is the minimum score under scoring model for SME credit card?
a) 50%
b) 60%
c) 65%
d) 75%
147. What is the maximum loan amount that can be sanctioned under SME Smart
Score for manufacturing units?
a) 10 lacs
b) 20 lacs
c) 50 lacs
d) None of these
148. What is the maximum loan amount that can be sanctioned under SME Smart
score for trade & services?
a) 10 lacs
b) 15 lacs
c) 25 lacs
d) 50 lacs
106 | P a g e
THE WINGS
SBLC, MASULIPATNAM
149. What is the maximum amount that can be sanctioned under Transport plus
for Corporates?
a) 1 Cr
b) 5 Cr
c) 10 Cr
d) 20 Cr
150. How many vehicles the transport operator should have under Transport
plus?
a) 10
b) 20
c) 30
d) 35
ANSWERS
1. a
2. d
3. d
4. b
5. c
6. d
7. c
8. d
9. d
10. a
11. c
12. c
13. c
14. d
15. c
16. a
17. c
18. b
19. a
20. c
21. c
22. b
23. a
24. d
25. d
26. a
27. b
28. d
29. d
30. d
31. b
32. b
33. d
34. d
35. c
36. b
37. b
38. a
39. a
40. a
41. a
42. b
43. b
44. d
45. a
46. d
47. c
48. c
49. d
50. a
51. d
52. b
53. d
54. c
55. d
56. c
57. d
58. C
59. a
60. d
61. d
62. b
63. b
64. c
65. c
66. a
67. c
68. d
69. a
70. d
71. d
72. d
73. b
74. d
75. c
76. c
77. c
78. c
79. a
80. b
81. a
82. a
83. c
84. c
85. d
86. d
87. d
88. c
89. b
90. b
91. d
92. a
93. d
94. d
95. c
96. d
97. c
98. a
99. b 100. d
101. a 102. d 103. b 104. b 105. d 106. d 107. c 108. b 109. a 110. c
111. b 112. b 113. c 114. b 115. b 116. c 117. d 118. b 119. d 120. b
121. c 122. c 123. a 124. d 125. a 126. d 127. b 128. b 129. b 130. d
131. d 132. a 133. c 134. c 135. a 136. a 137. a 138. d 139. b 140. c
141. a 142. d 143. a 144. b 145. c 146. b 147. c 148. c
107 | P a g e
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THE WINGS
SBLC, MASULIPATNAM
SBI HOME LOANS

[PREPARED BY SHRI N.V.R.S SUBBA RAO, MANAGER (TRG) & SUPPORTED
BY SHRI L.J.MECLRIN, CHIEF MANAGER(TRG)]
1.
For how many years an employee should be staying abroad for sanction of
NRI Housing loans?
a
1 year
b 2 years
c
3 years
d 5 years
2.
What is the minimum amount of loan under SBI Reverse Mortgage Loan
a
1 lac
b 3 lacs
c
5 lacs
d No minimum
3.
Borrowers availing loans upto Rs_____ can opt for paying interest either
at fixed rate or floating rate
a
Rs 75 lacs
b Rs 100 lacs
c
Rs 200 lacs
d None of these
4.
What is the target group of Sahayog niwas?

a
High net-worth customers
b
c
Joint families
d
Rural employees
SHGs
5.
Purchase of house /flats which are more than ____ years old:
Administrative Clearance should be obtained from the next higher authority
a
15
b 20
c
25
d 10
6.
What is the maximum moratorium period allowed for a building of 25 floors

a
18 months
b 24 months
c
30 months
d 36 months
7.
Maximum loan that can be sanctioned for repairs/renovation under NRI

Housing loan is
a
10 lacs
b 20 lacs
c
1 cr
d 10 cr
8.
Maximum loan that can be sanctioned under SBI Reverse Mortgage loan?
a
25 lacs
b 50 lacs
c
100 lacs
d No limit
9.
Maximum amount that can be financed for the purpose of House repairs and
renovations
a
5 lacs
b 10 lacs
c
15 lacs
d 20 lacs
10. What is the minimum amount of sanction under NRI Housing loans?
a
3 lacs
b 5 lacs
c
20 lacs
d 25 lacs
11. Pre-closure penalty is levied if the housing loan account is pre-closed within
how many years?
a
2 years
b 3 years
c
5 years
d No penalty for pre-closure
108 | P a g e
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SBLC, MASULIPATNAM
12. As per revised processing fee structure effective from 1st May,2011, the
processing fee to be collected for a Home Loan above Rs.75 lacs would be
Rs._____
a
5000/b 10000/c
15000/d 20000
13. What is the maximum moratorium period allowed for a building of 20 floors
a
30 months
b 24 months
c
18 months
d 36 months
14. What is the Risk weight on Housing loan of Rs 50 lacs where LTV ratio is
75%
a
50%
b 75%
c
100%
d 150%
15. What is the minimum age to get a housing loan sanctioned in SBI?
a
18
b 21
c
25
d 26
16. What is the maximum age limit to sanction a Housing loan under Platinum
Age Limit.
a
70 years
b 75 years
c
60 years
d 80 years
17. Housing loans up to _____amount is reckoned under priority sector
advances
a
10 lacs
b 15 lacs
c
20 lacs
d 25 lacs
18. The project cost of the Housing may consist cost of furnishing consumer
durables to an extent of
a
10% subject to max of Rs 3
b 10 % subject to max of Rs 5
lacs
lacs
c
15% subject of Max 2 lacs
d 15% subject to max of 3
lacs
19. What is the permissible EMI/NMI ratio for an annual income of Rs 10 lacs
a
50%
b 55%
c
60%
d 65%
20. Which of the following Housing loan variants is not withdrawn
a
SBI Tribal plus
b SBI Flexi home loan
c
SBI Freedom
d SBI Optima
21. In the case of tie up with builders, joint publicity expenditure towards the
cost of advertisement material etc., shall be shared with the builder subject
to a maximum of ____% of the expenditure incurred
a
30%
b 40%
c
25%
d 50%
22. Maximum moratorium period allowed in housing loans
a
18 months
b 24 months
c
30 months
d 36 months
109 | P a g e
THE WINGS
SBLC, MASULIPATNAM
23. Which of the following gets included in the project cost in Housing loans?
a
Cost of site
b Cost of Stamping
c
Cost of Registration
d All of these
24. The outstandings in Home loans to NRIs should be liquidated before the
borrower reaches
a
60 years
b 70 years
c
75 years
d 80 years
25. What is the LTV Ratio in the case of house for ready possession where the
Home Loan is for above RS.20 lacs?
a
75%
b 80%
c
85%
d 90%
26. If the proposal is strictly within the scheme, no administrative clearance is
required for loan proposals up to Rs ____
a
1 cr
b 2 cr
c
7.5 cr
d 10 cr
27. Processing fee to be recovered for housing loan sanctioned under Sahayog
Niwas
a
0.50% of the loan amount
b 1000/- per loan
c
0.25% of the loan amount
d None of these
28. What is the minimum limit amount under SBI Home loan PAL (Pre approved
loan)
a
10 lacs
b 20 lacs
c
25 lacs
d 30 lacs
29. Which of the following Home loan variants is not withdrawn
a
SBI Maxgain
b SBI Flexi Home Loan
c
SBI Easy Home Loan
d SBI Optima
30. What is the maximum amount that can be sanctioned under SBI Realty
a
1 crore
b 5 crore
c
10 crore
d No limit
31. What is the maximum number of co-borrowers allowed in Housing loans
a
2
b 3
c
4
d 6
32. A higher margin of ______will be insisted upon Reimbursement of
investment in housing, made during the preceding 12 months
a
15%
b 20%
c
25%
d 30%
33. At the request of the borrower recovery of interest during the moratorium
period may be deferred only if moratorium period does not exceed ____
months
a
18
b 24
c
30
d 36
110 | P a g e
THE WINGS
SBLC, MASULIPATNAM
34. The LTV ratio for a loan of Rs.10 lacs in the case of construction is :
a
75%
b 80%
c
90%
d None of these
35. No penal rate is chargeable for a Housing loan up to Rs _______
a
25000/b 50,000/c
1,00,000/d None of these
36. What is the Risk weight on a housing loan of Rs 30 lacs where LTV ratio is
75%
a
50%
b 75%
c
100%
d 150%
37. The permissible age for eligibility under SBI YUVA home loan
a
From 18 years to 40 years
b From 21 years to 40 years
c
From 21 years to 35 years
d From 21 years to 45 years
38. What should be the minimum residual life of property in case of single
borrower for sanction of loan under Reverse Mortgage ?
a
10 years
b 20 years
c
25 years
d 30 years
39. Maximum EMI/NMI Ratio for a loan of Rs 20 lacs under SBI Realty
a
30%
b 40%
c
50%
d 60%
40. In YUVA family( home loan) minimum ____% income should be contributed
by YUVA or YUVA couple
a
50%
b 60%
c
75%
d 85%
41. How much amount can be sanctioned for purchase of land under Gram
Niwas
a
1 lac
b 2 lac
c
5 lac
d No amount is sanctioned
42. Minimum loan amount under Home loan to business men
a
10 lacs
b 20 lacs
c
25 lacs
d 35 lacs
43. What is the minimum age of the spouse when loan is sanctioned in jointly
with the spouse in the case of SBI Reverse Mortgage loan
a
55 years
b Above 58 years
c
60 years
d No age restriction
44. What is the maximum amount that can be sanctioned for construction of
house under Sayahog Niwas
a
25000/b 50,000/c
75,000/d 1,00,000/45. SBI Home plus can be availed for how many times during the currency of the
Housing loan?
a
5 times
b 4 times
c
3 times
d 2 times
111 | P a g e
THE WINGS
SBLC, MASULIPATNAM
46. To be eligible under Platinum age limit minimum margin stipulated is

a
20%
b 20%
c
25%
d 30%
47. Under CRE home loans Provision on standard assets to be made at
a
c
0.40%
0.75%
b
d
1%
0.65%
48. Under SBI Realty what is the minimum margin for a loan of Rs 1 Cr
a
15%
b 20%
c
25%
d 30%
49. The minimum periodicity stipulated for Inspection of NPA housing loan
accounts
a
monthly
b quarterly
c
Half yearly
d Every week
50. Maximum amount that can be sanctioned under Tribal plus
a
5 lacs
b 10 lacs
c
20 lacs
d No limit stipulated
ANSWERS
1. b
2.b
3. a
4. d
5. a
6. d
7. a
8. c
9. b
10. a
11. d
12. b
13. a
14. b
15. a
16. b
17. d
18. a
19. b
20. a
21. a
22.d
23. d
24. a
25. b
26. c
27. d
28. a
29. a
30. c
31. b
32.c
33. a
34. c
35. a
36. a
37. c
38. b
39. c
40. c
41. a
42.c
43. b
44. b
45. d
46. d
47. b
48. c
49. c
50. b
112 | P a g e
THE WINGS
SBLC, MASULIPATNAM
CAR LOAN
[Prepared by Team SBLC & Updated by Shri L.J.Meclarin, Chief Manager]
1.
What is the age group for availing a car loan?

a) 18-60
b) 21-65
c) 21-70
d) 25-75
2.
What is the maximum loan amount for new car loans?

a) 15 lakhs
b) 25 lakhs
c) 50 lakhs
d) No ceiling
3.
What is the maximum loan amount for used car loans?

a) 5 lakhs
b) 10 lakhs
c) 15 lakhs
d) 20 lakhs
4.
What is the minimum NAI for salaried or for self-employed professionals to

apply for a car loan?
a) 75000/b) 250000/c) 150000/d) 175000/-
5.
What is the basis of loan amount in car loan for salaried?

a) 48 NMI
b) 35 NMI
c) 40 NMI
d) 56 NMI
6.
What is the basis of loan amount in car loan for others?

a) 2 NAI
b) 4 NAI
c) 3 NAI
d) 3.5 NAI
7.
What is the repayment period of new car loans?

a) 5 Years
b) 6 years
c) 7 years
d) 8 years
8.
What is the repayment period of used cars?

a) 5 Years
b) 7 Years
c) 7 Years from the date of original
d) 5 years from the date of original
purchase
purchase.
9.
What is the prepayment penalty for car loans

a) 1%
b) 2%
c) 3%
d) Nil
10.
What is the margin of the borrower in case of car loans?

a) 5%
b) 10%
c) 15%
d) 25%
11.
Where a check-off from the reputed employer is available the sanctioning

authority has discretion to reduce the margin by ---%
a) 1%
b) 2%
c) 3%
d) 5%
12.
Ezee Car loan is sanctioned for amounts

a) Above 5 lakhs
b) 5 lakhs
c) Below 5 lakhs
d) Scheme since dispensed with
113 | P a g e
THE WINGS
SBLC, MASULIPATNAM
13.
Advantage Car loan is sanctioned for amounts

a) Above 5 lakhs
b) 5 lakhs
c) Below 5 lakhs
d) Scheme since dispensed with
14.
What is the minimum credit score for considering the proposals good loans
a) 45 & above
b) 50 & above
c) 76 & above
d) 60 & above
15.
What is the minimum EMI/NMI percent in case of car loan applicant having
NAI upto Rs.5 lacs?
a) 40%
b) 50%
c) 55%
d) 60%
16.
What is the EMI/NMI percent for car loans in case of tie-ups with reputed
PSU/Corporates, institutions for applicants with Net Annual Income upto Rs.5
lacs?
a) 40%
b) 50%
c) 60%
d) 70%
17.
The EMI/NMI ratio should not exceed ---------- in case of applicants having
NAI above Rs.5 lacs to Rs.10 lacs
a) 50%
b) 60%
c) 70%
d) 75%
18.
The EMI/NMI ratio should not exceed ---------- in case of applicants having
NAI above Rs.10 lacs
a) 50%
b) 60%
c) 70%
d) 75%
19.
Insurance of the car is done in the name of borrower and bank?

a) Comprehensive insurance for
b) At least 10% above loan amount
market value
c) Higher of a or b
d) None of these
20.
The income of the following can be clubbed with that of the applicant for a
car loan?
a) Spouse
b) Father, Mother
c) Brother, sister
d) Any of these
21.
How many applicants can be there in a car loan?

a) Only1
b) Up to 2
c) Up to 3
d) Up to 4
22.
What is the maximum cost of accessories to be financed?

a) 5% of the cost of vehicle
b) Rs.25000/c) Lower of a or b
d) Only a
23.
What is the minimum of processing charges of car loan?

a) 500/b) 1000/c) 2000/d) 2500/-
24.
What is the maximum of processing charges of car loan?

a) 5000/b) 10000/c) 15000/d) 20000/114 | P a g e
THE WINGS
SBLC, MASULIPATNAM
25.
What is the percent of processing charges for a car loan?

a) 1%
b) 0.75%
c) 0.50%
d) 0.25%
26.
In the case of short-term promotional drives, the G. M. Of Network can

reduce the processing fee of car loans up to?
a) 25%
b) 50%
c) 75%
d) 100%
27.
What percent of processing fee will be retained if the application is rejected

after presanction?
a) 25%
b) 50%
c) 75%
d) 100%
28.
As per recent instructions, the loan tenor of a car loan can be extended upto
_______ years if interest rates on the existing loans go up and the EMIs are
left unchanged.
a) 8 years
c) 10 years
b) 9 years
d) 12 years
29.
Who will be borrower in case of NRI Car loan scheme?

a) Resident Indian
b) NRI
c) Resident Indian & NRI
d) Only NRI
30.
Who will be guarantor in case of NRI Car loan scheme?

a) Resident Indian
b) NRI
c) Resident Indian & NRI
d) NRI & employer
31.
What is the percent of margin under NRI CAR loan scheme for loans up to 6
lacs?
a) 5%
b) 10%
c) 15%
d) 20%
32.
The sanctioning authority of NRI car loan will have discretion to reduce
margin by _____% where check off from a reputed employer is available
a) 5%
b) 10%
c) 20%
d) 30%
33.
What is the minimum NMI/NAI of the guarantor under NRI car loan scheme?
a) $ 500 NMI or $ 10000 NAI
b) $ 1000 NMI or $ 12000 NAI
c) $ 1200 NMI or $15000 NAI
d) $1500 NMI or 18000 NAI
34.
What is the basis of loan amount of NRI car loan?

a) 6 times NMI or 0.5 times NAI
b) 12 times NMI OR 1 time NAI
c) 18 times NMI or 1.5 times NAI
d) 24 times NMI or 2 times NAI
ANSWERS
1.b
11.d
21. b
31. c
2.d
12.c
22. c
32.a
3. c
13. d
23. b
33. b
4. b
14. c
24. b
34. c
5. a
15. b
25. c
6. b
16. c
26. b
115 | P a g e
7. c
17. b
27. a
8. c
18. d
28. a
9. d
19. c
29. a
10. c
20. d
30.b
THE WINGS
SBLC, MASULIPATNAM
EDUCATION LOANS
[Prepared by Team SBLC & Updated by Shri L.J.Meclarin, Chief Manager]
1.
What is the maximum loan under SBI student loan for studies in India?
a) 5 lakhs
b) 10 lakhs
c) 15 lakhs
d) 20 lakhs
2.
What is the maximum loan under SBI student loan for studies abroad?
a) 10 lakhs
b) 15 lakhs
c) 20 lakhs
d) 25 lakhs
3.
What is the margin for studies in India for loans above Rs. 4 lakhs
a) 5%
b) 10%
c) 15%
d) 20%
4.
What is the margin for studies abroad for the loans above 4 lakhs?
a) 5%
b) 10%
c) 15%
d) 20%
5.
What is the repayment period under SBI student loan?

a) 5 years
b) 5-7 years
c) 7 years
d) 7-8 years
6.
What is the security for loans up to Rs.4 lakhs under SBI student loan?
a) Co-obligation of parents
b) No collateral security
c) Both a&b
d) TPG
7.
What is the security for loans between 4 - 7.5 lakhs under SBI student loan?
b) collateral security at least
equivalent to loan amount
c) TPG
d) Both a) & c
8.
What is the security for loan above Rs. 7.5 lakhs under SBI student loan?
b) Tangible collateral security along
with assignment of future income
of the student for payment of
instalments
c) TPG
d) Both a) & b
9.
What is the percent of penal interest to be charged for loans above 4 lakhs for
the over due amount & over due period?
a) 1%
b) 2%
c) 3%
d) 4%
10.
What is the rate of interest concession if full interest is repaid during

moratorium period?
a) 1%
b) 1.5%
c) 1.75%
d) 2.00%
11.
What is the processing fee for loans up to Rs.4 lakhs?

a) 0.5%
b) 0.75%
c) 1.00%
d) Nil
116 | P a g e
THE WINGS
SBLC, MASULIPATNAM
12.
What is the maximum loan under SBI Scholar schme

a) 5 lakhs
b) 10 lakhs
c) 15 lakhs
d) 20 lakhs
13.
For availing loan under SBI Education plus the applicant must be permanent
employee with --- years of service?
a) 1
b) 2
c) 3
d) 5
14.
The age of the applicant under SBI Education plus should be less than
a) 45 years
b) 50 years
c) 60 years
d) 65 yeasrs
15.
What is the minimum loan under SBI Education plus ?

a) 10000/b) 15000/c) 20000/d) 25000/-
16.
What is the maximum loan under SBI Education plus?

a) 25000/b) 50000/c) 75000/d) 100000/-
17.
What is the limit of Education loan that can be classified as priority sector
advance for studies in India?
a) 5 lakhs
b) 10 lakhs
c) 15 lakhs
d) 20 lakhs
18.
What is the limit of education loan that can be classified as priority sector
advance for studies abroad?
a) 10 lakhs
b) 15 lakhs
c) 20 lakhs
d) 25 lakhs
19.
What is the limit up to which education loans are eligible for interest subsidy
during moratorium for students from economically weaker sections with annual
gross parental/family income up to Rs.4.5 lakhs
a) 2 lakhs
b) 5 lakhs
c) 7 lakhs
d) 10 lakhs
20.
Who is the competent authority for waiving third party guarantee for loans
above Rs.4 lacs and up to Rs.7.5 lacs
a) GM
b) AGM of CPC
c) AGM of Region
d) b or c
21.
What is the repayment period of education loans sanctioned to wards of staff?

a) 60 months
b) 84 months
c) 108 months
d) 120 months
22.
Which of the following statements about SBI student loan is correct?

a) No qualifying marks stipulated in
b) Admission through management
the last qualifying examination
quota may be considered.
c) Evening courses of approved
d) All of these
institutes
117 | P a g e
THE WINGS
SBLC, MASULIPATNAM
23.
Which courses are not eligible under SBI student loan scheme?
a) Vacational training & skill
b) Medical courses in
development study courses
USSR,China,Nepal &other
countries not recognized by
Medical council of India.
c) Courses conducted by universities d) All of these
through distance mode of
learning.
24.
What is the maximum no. of loans in a family under the scheme?

a) 1
b) 2 only
c) 3 only
d) No ceiling
25.
2% penal interest to be charged for loans of Rs.---- for the over due amount
and ovdue priod?
a) 2 lacs
b) Above 2 lakhs
c) 4 lakhs
d) Above 4 lakhs
26.
When second loan is sanctioned, what is the norm for repayment?

a) 1 year after completion of 1st
b) 2 years after completion of 1st
loan
loan
c) 1 year after the completion of the d) 2 years after the completion of
second course or 6 months after
the second course or 6 months
taking up a job whichever is
after taking up a job whichever
earlier.
is earlier
27.
Which of the following expenses can be considered for arriving at loan

amount?
a) Fee payable to college/hostel
b) Expenses like study tours,
including examination fee.
project work, theses etc.
c) Purchase of computers
d) All of these
28.
What is the repayment holiday/moratorium under SBI student loan?

a) Course period + 1 year
b) Course period + 6 months after
getting job
c) Course period only
d) Course period+ 1 year or 6
months after getting job
whichever is earlier
29.
Loan applications under SBI student loan have to be disposed off within a
period of ---- days/weeks?
a) 7 days
b) 7 weeks
c) 9 days
d) 2 weeks
30.
The processing of education loan applications should be monitored by the

controllers and RACPCs on ------ basis?
a) Daily
b) Weekly
c) Fortnightly
d) monthly
31.
What is the maximum age limit prescribed for the students availing the loan?
a) 21 years
b) 25 yeasrs
c) 30 years
d) No age limit
118 | P a g e
THE WINGS
SBLC, MASULIPATNAM
32.
Application for educational loan should not be rejected without the

concurrence of
a) BM
b) AGM
c) GM
d) Next higher authority.
33.
No Dues Certificate need not be insisted upon as a pre-condition for

considering education loan.
a) True
b) False
c) Cant Say
d) None of these
34.
Loan applications received and disposed off register should be properly

maintained
a) True
b) False
c) Cant Say
d) None of these
35.
Our branches can issue the capability certificate for teh students going
abroad for higher studues
a) True
b) False
c) Cant Say
d) None of these
36.
Government of India has formulated a scheme of providing Interest Subsidy

for Education Loans of students of Economically Weaker Sections whose
parental/family gross Annual Income is up to Rs.__________
a) Rs.1.00 lac
b) Rs.2.50 lacs
c) Rs.3.00 lacs
d) Rs.4.50 lacs
ANSWERS
1. b
2. c
3. a
4. c
5. b
6. c
7. d
8. d
9. b
10. a
11. d
12 c
13. b
14. a
15. d
16. d
17. b
18. c
19. d
20. d
21. d
22 d
23. d
24. d
25. d
26. c
27. d
28. d
29. a
30. b
31. d
32 d
33. a
34. a
35. a
36.d
119 | P a g e
THE WINGS
SBLC, MASULIPATNAM
Agricultural Advances (Compiled by Shri V.Devendra Prasad)

1.
Which of the following is one of SBIS initiatives under Bonding with Farmers
a) APKA GAON
b) HAMARA GAON
c) SBI Ka Apna Gaon
d) APNA GAON
2.
Minor irrigation schemes are not permitted in which of the following area
a) White Area
b) Grey Area
c) Blue Area
d) Dark Area
3.
What is the Government scheme formulated for assisting Rural poor?

a) PMEGP
b) SGSY
c) SJSRY
d) DIR
4.
Who is the head of the committee on Financial Inclusion?

a) V. Khelkar
b) Usha Thorat
c) C.Rangarajan
d) Vepa Kamesam
5.
D.C.B register is to be prepared as on what date every year?

a) 30th June
b) 31st May
c) 30th April
d) 31st July
6.
Maximum limit under KCC is ----- Lakhs

a) 10
b) 20
c) 100
d) No limit
7.
Crop insurance is---- for

a) Compulsory for all crop loan
borrowers for all crops
c) Compulsory for all crop loan
borrowers for notified crops only
8.
Kisan Gold card (KGC) is given as-a) Cash Credit

c) Demand loan
b) Not compulsory
d) Only small & marginal farmers
are eligible for croo insurance
b) Over Draft
d) ATL
9.
Name the scheme under which tractor loan is given?

a) Tractor plus
b) Revised Scoring Model
c) Krishi plus
d) None of these
10.
Frequency of inspection of irregular tractor loans-a) Fortnightly

b) Monthly
c) Half yearly
d) Yearly
11.
In the revised scoring model of financing tractors, proposal with score of ___
and above are considered as good loans.
a) 76 and above
b) 56 and above
c) 46 and above
d) 85 and above
12.
In the revised scoring model for tractors, proposals with scoring from-----to --may be considered after credit enhancements or to be referred to next
higher authority.
a) 26 - 55
b) 36 - 55
c) 46 - 55
d) 30 - 55
120 | P a g e
THE WINGS
SBLC, MASULIPATNAM
13.
The new revised scoring model is effective from which date?

a) 1.1.2010
b) 1.1.2011
c) 1.12.2010
d) 1.2.2011
14.
The life of a tractor is considered to be ___ hours.

a) 6000
b) 8000
c) 10000
d) 12000
15.
In the revised scoring model maximum no. of marks are given to which
parameter?
a) Hiring potential
b) Social status
c) Perennial source of irrigation
d) Cropping pattern
16.
The assets purchased out of bank finance will form what type of security ?
a) Loan security
b) Mortgaged security
c) Primary security
d) Collateral security
17.
What is the minimum land holding required to finance a power Tiller?

a) 7 Acres of perennial irrigated land b) 5 Acres of perennial irrigated land
c) 2 Acres of perennial irrigated land d) No land criteria
18.
The maximum loan under dairy plus scheme is ___

a) Rs.5 lacs
b) Rs.3 lacs
c) Rs.2 lacs
d) Rs.1 lac
19.
What is the name of the new scheme for financing tractor for repairs?
a) Sanjiveni
b) Krishi plus
c) Repairs plus
d) Tractor plus
20.
Financing of both working capital and term loan simultaneously is called as?
a) Mixed loan
b) Composite loan
c) Combined loan
d) Loan syndication
21.
What is the minimum amount of kisan credit card in other than Uttaranchal?
a) Rs 1000/b) Rs.3000/c) Rs.5000/d) Rs.10,000/-
22.
While financing for Crop production in Agriculture the amount of finance per
acre is called as?
a) Crop finance
b) Scale of finance
c) Working capital finance
d) None of above
23.
Scale of finance i.e the amount we give per acre under Kisan credit is decided
by whom?
a) The AGM of that region
b) NABARD
c) RBI
d) District Level Technical committee
24.
The scales of finances arrived by the bank based on cost of cultivation are
known as :
a) SBI Scales
b) Bank scales of finance
c) Zonal office scales
d) Corporate scales of finance
121 | P a g e
THE WINGS
SBLC, MASULIPATNAM
25.
In KCC, the crop production needs are arrived for ---a) One season
b) One year
c) For three years
d) For 5 years
26.
The limit in KCC depends on the following

a) Crop, land holding and the area
b)
where crops are grown
c) Crop, land holding and the scale
d)
of finance adopted
Crop, land holding, whether wet

lad or dry land
Land holdings, crop, and
whether he is small farmer or
big farmer
27.
In kCC, consumption credit is calculated on the followinga) Crop production limits

b) Total limt sanctioned
c) On Allied production needs
d) On total production needs
28.
In KCC, consumption credit is sanctioned on total production credit at the

rate of __.
a) 10%
b) 20%
c) 20% and upto a maximum of
d) 30%
Rs.10,000/-
29.
In KCC UP to a limit of Rs.-------no collateral security is obtained.

a) 50,000/b) 75,000/c) 100,000/d) 200,000/-
30.
The primary security in case of a KCC loan?

a) Hypothecation of crops grown
b) Mortgage of land where crops
are grown
c) D.P note
31.
KCC is given in the form of which facility?

a) Term loan
b) Cash credit
c) Demand Loan
d) Over Draft
32.
Crop Insurance is being covered by which company?

a) New India Insurance Company
b) United Insurance Co. Of . India
c) Agrl. Insurance co. of India ltd
d) Birla Crop Insurance.
33.
Crop insurance should be covered -a) Month wise

c) Month wise, crop wise and
Mandal wise
b) Month wise and crop wise

d) Month wise, Crop wise, Mandal
wise, and SF/big farmer wise
34.
Crop Insurance premia should be sent by branches to their controllers by--a) Every week
b) By every month
c) For every quarter
d) For every year
35.
Crop insurance is applicable to which crops?

a) Applicable to all crops
b) Applicable to cereals only
c) Applicable to pulses only
d) Crops as decided by the Govt. of
India for each district fo each
season
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36.
For which category of farmers Govt. gives subsidy for crop insurance premia
being paid by them?
a) For farmers growing cereal crops b) For farmers growing pulse crops
c) For farmers growing oil seed
d) For small and marginal farmers
crops
who have availed loans from
banks for the notified crops of
that distt.
37.
Kisan Credit Card (KCC) is valid for--a) 1 year

c) 3 year
b) 2 year
d) 5 years
38.
Kisan Credit Card is reviewed every---- and renewed every---a) Year 2 years
b) Year and 3 years
c) Need not be reviewed only
renewal for every 3 years
39.
Zonal office scales are almost-----times to the normal scales of finances

a) 2
b) 3
c) 4
d) 5
40.
When KCC is sanctioned adopting normal scales of finances what are the
margin stipulations?
a) 10%
b) 15%
c) 20%
d) No margin are required
41.
What are the margin requirements for crop loans of limits above Rs.100,000/where cost of cultivation is worked out by the Bank.
a) 5 to 10%
b) 10 to 15%
c) No margin at all
d) 15 TO 25%
42.
KCC is given for the following purposes.

a) Crop production needs
b) Allied production needs
c) Miscellaneous needs
d) All the above
43.
In contract farming under tie-up arrangement what is the ceiling up to which

collateral security need not be obtained?
a) Rs.100,000/b) Rs.200,000/c) Rs.300,000/d) Rs.50,000/-
44.
In Agricultural term loans security is waived up to a limit of ?

a) Rs.100,000/b) Rs.50,000/c) Rs.25,000/d) Rs.60,000/-
45.
In Agricultural term loans where movable assets are not created out of bank
finance what is the limit above which collateral security is obtained?
a) Rs.1,00,000/b) Rs.20,000/c) Rs.30,000/d) s.50,000/-
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46.
In kisan gold card , 20% consumption credit is sanctioned on-a) Eligible loan amount
b) On the balance amount after
reducing the outstanding ATL
balance if any from the eligible
loan amount
c) On the eligible loan amount befd) None of the above
ore reducing the ATL outgs .if any
47.
In Kisan Gold Card (KGC), how many number of loans can be sanctioned to a
single borrower?
a) 3
b) 4
c) 5
d) 6
48.
The following loans are banned from sanctioning under Kisan Gold card
a) Loans for land development
b) Tractor loans& land purchase
loans
c) Loans for construction of shed
d) All loans for Agrl. Purpose can be
sanctioned
49.
Name of the insurance scheme which covers the personal accident risk of the
crop loan borrowers?
a) Personal Accident Insurance
b) Accident Insurance cover
Scheme
c) Life cover
50.
The maximum age up to which the personal accident insurance will cover?
a) 60
b) 65
c) 70
d) 75
51.
What is the premium that is to be paid to cover under this PAIS

a) Rs.10
b) Rs.15
c) Rs.20
d) Rs.50
52.
Out of Rs.15/- paid towards premia of PAIS Rs.---- is borne by the bank.
a) Rs.5/b) Rs.15/c) Rs.8/d) Rs.10/-
53.
What is the total compensation paid in PAIS?

a) Rs.50,000/b) Rs.70,000/c) Rs.75,000/d) Rs.100,000/-
54.
In personal accident insurance, what is the time limit within which the
nominee of the injured has to report to the concerned bank?
a) Within 1 week
b) Within 10 days
c) Within 15 days
d) Within 30 days
55.
The corpus fund in SHGs does not include the following ?

a) Cash in hand
b) Cash in their savings account
c) Bank loan
d) Internal loan outstanding with
the borrowers
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56.
Govt. of India is providing Interest subvention to short term agricultural

advances to
a) Only commercial banks
b) Commercial banks, RRBs and
Coop. banks
c) Commercial banks, RRBs and
Coop. banks
57.
In Agrl. Cash credit interest @ 7% is charged up to a limit of Rs.-----a) 1 lakh

b) 2 lakh
c) 3 lakh
d) 5 lakh
58.
RIDF stands for

a) Rural Infrastructural development
fund
c) Rastria Industrial development
fund
b) Rural Industrial development

fund
59. NABARD prepares ----plan taking into consideration the potentials available in
the district before preparing the annual action plan
a) Potential Credit plan
b) Service area credit plan
c)
Annual credit plan
d) Potential linked credit plan
60. Inspection charges for advances to weaker sections is
a) 25% of actual charges
b) 50% of actual charges
c)
75% of actual charges
d) No charges at all
61. AB-7 document is obtained for
a) Rephasement of a term loan
c)
It is a mortgage deed
b) Conversion of crop loan into

term loan
d) Revival letter obtained from
guarantor
62. In agricultural advances, detailed opinion is compiled on borrowers whose

aggregate credit limits are more than Rs.----a) Rs. 50,000/b) Rs.75,000/c)
Rs.100,000/d) Rs.200,000/63. Crop loan/ KCC is given to
a) Owner cultivators
c)
Share Croppers
b) Tenant farmers
d) All the above
64. AB-1 simple document is obtained for borrowers whose limits are---a) Up to Rs.50,000/b) Up to Rs.100,000/c)
UP to Rs.200,000/d) Up to Rs.500,000/65. The minimum amount in a KCC account for take over--a) Rs.100,000/b) Rs.200,000/c)
Rs.300,000/d) Rs.500,000/66. The minimum amount for take over in allied activities under ATL is
a) Rs.100,000/b) Rs.500,000/c)
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67. The limitation period for AB-1 in case of ATL accounts

a) 3 Years from the date of
b) 2 Year4 months from the date
execution of AB-1
of execution of AB-1
c)
3 years from the due date of
d) 3 yrs. From the due date of
repayment
repayment / first overdue
instalment from the date of
demand whichever is earlier
68. Demand collection Balance register(DCB), is maintained for
a) Only for Govt. accounts
b) Only for ATL accounts
c)
Only for CCC/KCC
d) Both for ATL & ACC/KCC
69. Equitable mortgage is valid for how many years?
a) 3 years
b) 10 years
c)
12 years
d) 30 years
70. What is meant by mixed farming?
a) Growing more than 1 crop
c)
Undertaking cultivation and allied

activities
71. In agriculture , Document AB-6 is a

a) Revival letter
c)
Rephasement letter
b) Growing crops in the fields of

the farmers on community basis
b) Deed of guarantee
d) Letter addressed to borrower to
repay the loan
72. For small & marginal farmers, the exemption for stamp duty is up to the limit
of Rs.----a) 100,000/b) 200,000/c)
300,000/d) 500,000/73. Stamp duty for AB-1in case of agricultural cash credit where the loan is
secured by mortgage of crop is-----% of loan amount or maximum
Rs.200,000/a) 0.5%
b) 0.6%
c)
1.0%
d) 2.0%
74. Mortgage charges for a registered mortgage-----% of loan amount
a) 0.5%
b) 1%
c)
2%
d) 3%
75. Annewari indicates ?
a)
Rain fall pattern
c)
Land cess
b) Cropping pattern
d) The extent to which crops are
damaged due to natural
calamity
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ANSWERS
1.
2.
d 3.
b 4.
5.
a 6.
d 7.
8.
d 9.
b 10. b
11. b 12. a 13. b 14. c
15. b 16. c
17. c
21. b 22. b 23. d 24. c
25. b 26. c
27. d 28. b 29. c
31. b 32. c
41. c
33. d 34. b 35. d 36. d 37. c
42. d 43. b 44. a 45. a 46. c
51. b 52. d 53. a 54. d 55. c
56. c
18. a 19. a 20. b
38. b 39. a 40. d
47. c
48. b 49. a 50. c
57. c
58. a 59. d 60. d
61. b 62. c
63. d 64. b 65. a 66. d 67. d 68. d 69. c
71. d 72. c
73. b 74. d 75. d
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30. a
70. c
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AGRL. SEGMENT SCHEMES, PRODUCTS

& GOVERNMENT SPONSERED SCHEMES
(PREPARED BY SRI V.DEVENDRA PRASAD, MANAGER (TRG))
KISAN CREDIT CARD(KCC)
1.Kisan credit card (KCC) is given for the purpose of
a Crop production requirement
b Working capital requirement for
allied activities
c Maintenance of Agrl. Machinery,
d All the above
Electricity expenses, contingent
needs
2. Kisan credit card is extended to which of the following farmers?
a Owner cultivators
b Tenant cultivators
c Share croppers
d All the above
3. The minimum loan under KCC excepting in UTTARANCHAL State is?
a Rs.10,000/b Rs.5,000/c Rs.3,000/
d Rs.2,000/4. In KCC, the crop production requirement is fixed based of which of the following
factors
a Operational land holding
b Cropping pattern
c
Scale of finance adoted
All the above
5. In KCC, 20% consumption credit is calculated on which of the following ?

a Crop production needs
b Working capital required for allied
activities
c Total production needs which
d On total KCC limit
includes both crop production as
well as working capital required for
allied production needs
6. What is scale of finance in KCC
a It is the amount required for raising b It is the area that a particular
a particular crop in a particular
crop is grown
district
c The value of the sale proceeds of a
d
None of the above
particular crop
7. There are 2 types of Scales of finances that are adopted by the branches While
working out the limits under K.C.C. What are they?
a DLTC scales of finances & Scales of b DLTC Scales of finance &
finances arrived based of cost of
NABARD Scales of Finance
cultivation
C Mandal level scales of finances &
d Scales of finances given by RBU &
DRDA Scales of Finances
NABARD Scales of finances
8.The scales of finances of crops are uniform for a particular area--a Throughout the country
b State
c District
d Mandal
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9. In DLTC scales of finances, expand what is DLTC ?

a Department Level Technical
b District Level Technical
Committee
Committee
c District wise total cost of cultivation d District Level Taskforce
committee
10. What is the margin in KCC when the limits are arrived based on DLTC Scales
of finances ?
a 25%
b 20%
c
15%
When DLTC Scales are applied no

margin need to be maintained as
the scales themselves are
calculated excluding margins.
11.Which of the following statements is correct in respect of margin to be
maintained in KCC when cost of Cultivation is worked out and financed?
a No margin need to be obtained
b Up to limits of Rs. 50,000/- no
when scales of finances based on
margin.
cost of cultivation are applied for
Above Rs.50,000/-, margin of
arriving limits in KCC
15-25% to be maintained
c A Uniform margin of 15-25% has to d Up to Rs.200,000/- no margin,
be maintained.
above Rs.2 lacs, margin of 1525% has to be maintained
12.The limit up to which collateral security is waived in case of contract farming
KCC accounts?
a Rs.100,000/b Rs.200,000/c Rs.300,000/d Rs.500,000/13. Relaxation in security is available up to a limit of Rs.200,000/- to some of the
farmers who are-a Having legal title to the land
b Good repayment track for the
holdings
past 3 years
c Should not have benefitted in the
d All the above three
recent Agl. Debt Waiver and Debt
Relief Scheme.
14. Literate KCC holders enjoying KCC limits of Rs.---- and above can be given
cheque book facility
a Rs.25,000/b Rs.50,000/c Rs.100,000/d Rs.200,000/15. All KCC borrowers up to the age of ---- are covered under personal accident
insurance(PAIS)
a 55
b 60
c 65
d 70
16. Personal accident insurance(PAIS) will cover up to an amount of Rs.---- to the
KCC borrowers for death and permanent disability.
a Rs.25,000/b Rs.50,000/c
Rs.75,000/-
d
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Rs.100,000/-
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17. The premium paid towards coverage Of PAIS is Rs.15 per annum. Out of what
is the amount born by the bank?
a Rs.5/b Rs.10/c Rs.15/d Entire amount is born by the
borrower.
18. KCC limit is valid for ---- years subject to annual review.
a 2 years
b 3 years
c 4years
d 5 years
19. In KCC, only the following--- crops are eligible for insurance cover
Cereals
b Pulses
a
c Millets
d Only notified crops by the
Govt.
20. In KCC, crop insurance is covereda Crop wise
c Month wise & @ Small Farmer& Big
Farmer wise
b
d
Mandalwise
All the above
21. Whether crop insurance is compulsory or any choice is there to farmer?

A Yes, it is compulsory for all farmers
b Not compulsory
whoever avails the loan If that crop is
identified for crop insurance coverage in
that district
C Farmer can go for lesser insurance if he d Branch Manager of the
wants
branch can permit for waiver
22. Who are the committee members In personal accident Insurance claims
enquiry cum verification committee
a Branch Manager
b Lead Bank Officer
c
Nominated officer from Insurance

d All the above
Company
23. Time limit within which the accidental death of the KCC borrower to be
intimated to the Bank by the Nominee
a Within a week of death
b Within 10 days of death
c Within 30 days of death
d Within 60 days of death
24.Which of the following statement/s are correct in respect of crop insurance
coverage of KCC Loans?
a Loans given for unsown areas will not be b In areas where the crop is
covered
withered away or damaged on
account of adverse seasonal
conditions, further disbursal
are not covered
C Losses to crops due to drying after
d All the above
harvesting are excluded from the
coverage of the scheme
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25. In KCC, what is the sum insured in crop insurance?

a The Limit Sanctioned
b 150% of the limit Sanctioned
c Total limit arrived at the peak level
d Only the disbursed portion of
the limit
26. Which of the following agency implements the crop Insurance scheme?
a National Agrl. Insurance co.ltd
b New India Assurance co.ltd
c Agricultural Insurance Company of India d United India Insurance co.ltd
ltd, an organization promoted by GOI
27. The extent of coverage under crop insurance in KCC for a wheat crop?
a Full value of the crop raised .
b 50% of yield of the crop
raised .
c To the extent of threshold value of the
d To the extent of 75% of the
crop raised.
value of the crop
28. Branches should also cover non loanee farmers if they come forward for
insuring their crop provided they produce -a Their Agrl. Land pass book
b Land revenue receipt
c
a confirmation certificate from the local

Agrl. Officer having raised the crop in a
particular survey no. of a village
29. What is the minimum limit that is prescribed
a Rs.5 Lacs
c Rs.2 Lacs
for take over of crop loan?

b Rs.3 Lacs
d Rs.1 Lacs
30. What is the average annual rain fall of India?

a 2000-2200 MM
b
c 1194-1200 MM
d
31. What is meant by mixed farming ?
a Growing Different Crops on in the same
field
c
Taking up Allied activities along with

farming
title deeds of the land where

the crops are grown.
1500-1600MM
985-1000 MM
Cultivation of different crops
by the same farmer in
different fields
Growing of crops by different
farmers on the same land
KISAN GOLD CARD

32. Who among the following is eligible for Kisan Gold Card loan ?
a Farmers having excellent
b Farmers who have closed their
repayment record for the last 2
loans without any default in the
years in respect of their loans
last 3 years, but are not our
current borrowers
c Farmers who have defaulted in
d ALL the above
repayment but liquidated their dues
within the stipulated period
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33. The limit in KGC is

a 5 times the annual income or 50%
of the realizable value of the land
mortgaged whichever is lower
minus ATL outstandings if any,
subject to a maximum of Rs.10 lacs
c 5 times the annual income or 50%
of the realizable value of the land
mortgaged whichever is lower ,
subject to a maximum of Rs.5 lacs
b 5 times the annual income or

50% of the realizable value of
the land mortgaged whichever is
lower , subject to a maximum of
Rs.10 lacs
d 10 times the annual income or
50% of the realizable value of
the land mortgaged whichever is
lower minus ATL outstandings if
any, subject to a maximum of
Rs.10 lacs
34. What are the activities that are banned under this scheme?
a Purchase of Tractors & Accessories b Purchase of land
c
Construction of farm shed
d All the above
35.In KGC, the consumption requirement of 20% is calculated on -a The eligible limit arrived after
b The eligible limit arrived before
deducting the outstanding ATLs if
deducting the outstanding ATLs
any
if any
c In KGC no provision for any
d A fixed amount is given
consumption credit
36. In KGC, what is the margin to be maintained for investment purposes
and Consumption purposes?
a 10%& 30% respectively
b 15%& 30% respectively
c 20%& 40% respectively
d 25%& 40% respectively
37. Maximum number of accounts permitted to be opened for different purposes
for a single borrower under KGC are?
a
One account
b 2 accounts
c
3 accounts
d 5 accounts
38. What is the repayment system for the loans sanctioned in KGC
a
Same repayment for all Loans
b Each loan will have its own
sanctioned
repayment schedule based on its
purpose
c
All loans sanctioned for land based d Loans whose repayments are less
activities will have one repayment
than 3 years are clubbed into one
and loans sanctioned for allied Agrl.
group and the remaining are
activities will have another
grouped into another for
repayment
repayment
39. Which of the following condition makes the borrower ineligible for any further
withdrawals from the existing accounts or for fresh facility for another purpose
within the sanctioned KGC limit?
a
Borrower crossing 65 years of age
b Borrower default in repayment of
any of the installments
c
Diversion of funds
d Borrower establishing new
connections with other banks
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40. What is the period within which the borrower has to avail the sanctioned limits
in KGC?
a
Within one month
b Within 3 months
c
Within 6 months
Within 12 months
41. In KGC, end use of funds is ensured by verification of the assets purchased,
collection of invoices/ cash receipts within how many days of release of funds?
a
Within 1 Week
b Within 15 days
c
Within 1 month
d Within 45 days
FARM MECHANISATION
A. Purchase of new tractor
42. What is the name of the scheme under which new tractor is given?
a
Tractor Plus
b Krishi Plus
Scoring Model
d Revised Scoring Model
43. What are the new parameters included in the revised scoring model ?
a
Hiring Potential
b Types of crops raised
c
No. of Guarantors & Percentage of d All the above
income from allied activities
44. In the revised scoring model of financing tractor, proposals with a credit score
of ----- and above are considered good for sanction
a
45 and above
b 50 and above
c
56 and above
d 60 and above
45. In the revised scoring model of financing the tractor, proposals getting a
score of 26 and above but up to 55 are required ---------for getting sanction.
a
To give security twice the limit
b To give Tangible security worth the
sanctioned
limit
c
To refer to the next higher
d To submit to Zonal office for the
authority for sanction
sanction by AGM
46. In the revised scoring Model of financing Tractors, Proposals with credit score
of 25 and below are----a
Referred to Zonal Office for their
b Required to give 200% Tangible
advice.
security for sanction
c
Limit to the extent of
d Not considered for sanction
Rs.300,000/- only is sanctioned
47. In financing new tractors what are the various components that can be
included in the limit?
a
Cost of Engine & implements
b Cost of Engine + Implements+
Registration charges
c
Cost of Engine + Implements+
d Cost of Engine + Implements+
Registration charges + Insurance
Registration charges + Insurance
premium charges(If the borrower
premium charges(If the borrower
opts only comprehensive
opts only comprehensive
insurance) not exceeding
insurance) not exceeding
Rs.15,000/Rs.15,000/- + 10% of tractor loan
limit for repairs purpose
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48. What is the upfront fee to be recovered for a tractor loan of Rs 200,000/-?
a
1% of loan amount
b 1.25% of loan amount
c
2% of loan amount
d No upfront fee for loans up to
Rs.200,000/
49. At the time of sanction of new tractor loans, an additional loan to the extent
of---% of the sanctioned tractor loan may be sanctioned for repairs.
a
5%
b 10%
c
15%
d 20%
50. Registration of the tractor should be done in the borrowers name alone why?
a
Because he is the main borrower b After repayment the tractor
remains with the borrower
c
If Bank name is also included in
d None of the above
that, then Bank will also become a
party for all the accidents that
tractor involves.
51.Where the Banks lien is to be noted when the tractor is registered with RTA?
a
In the Banks books
b
In the Books of RTA
c
In the loan account of the tractor
d
In the books of the dealer sold
borrower
the tractor to the borrower
52. What is the repayment period usually fixed for a new tractor?
a
5 Years
b
7 Years
c
9 Years
53. What is meant by net incremental Income?

a
Net profit after taxes
b
c
The difference income between post d
development net profit and pre
development net profit
10Years
Net profit plus depreciation
Non of the above
B. PURCHASE OF SECOND HAND TRACTORS

54. The objective of Financing Second Hand Tractors is-a
To increase business under Tractor
b
To Mechanize farmers fields in
Finance
general
c
To enable Small & Marginal Farmers d
All the above
to mechanize their Farms by
providing them good quality Second
hand Tractors.
55. In financing second hand Tractors What should be the age of the tractor
a
Not more than 5 years old
b
c
56. What are the companies with whom SBI is having Tie-up for financing second
hand tractors?
a
M/S TAFE Ltd & M/S Mahindra &
b
International & Massey Ferguson
Mahindra
c
M/s Eitcher & M/S Escorts LTD
d
Swaraj &Sonalika
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57. What is the minimum acreage fixed for financing secondhand tractors ?
a
Minimum 8 Acres of perennially
b
Minimum 5 acres of perennially
irrigated land
Irrigated Land
c
Minimum 3 acres of perennially
d
Minimum 52acres of perennially
Irrigated Land
Irrigated Land
58. What are the minimum number of working hours in a year required for a
second hand tractor to be financed ?
a
At least 600 hours of work including b
At least 500 hours of work
custom hiring should be available
including custom hiring should be
per annum
available per annum
c
At least 400 hours of work including d
At least 300 hours of work
custom hiring should be available
including custom hiring should be
per annum
available per annum
59.What is the over all maximum loan that can be sanctioned for the second hand
tractor with implements?
a
Rs.5 Lacs
b Rs.4.5 Lacs
c
Rs.3.5 Lacs
d Rs.2.5 Lacs
60. What is the Minimum DSCR required for Financing a tractor loan?
a
1:2
b 1:1.80
c
1: 1.75
d 1:1.60
61. What is the average economic life of new tractor?
a
15 years
b
12 Years
9 Years
10 Years
62. What is the name of the scheme exclusively meant for financing repairs,
maintenance and purchase of new implements?
a
Krishi Plus
b Bhumi Plus
c
Tractor Plus
d Sanjeevani
63.Whta is the maximum limit available under Sanjeevini scheme only for the
repair purpose?
a
Rs.100,000/b Rs.75,000/c
Rs.50,000/d Rs.45,000/64. What is the maximum limit available under Sanjeevini scheme of Financing
tractors for repair s and purchase of new implements
a
Rs.200,000/b Rs.1,50,000/c
Rs.100,000/-
Rs.75,000/-
65.What is the eligibility criteria for availing Sanjeevini tractor loan?

a
Borrowers who have availed tractor loans
b Tractor loan borrowers
earlier before years and closed.
who have paid a minimum
of 2 yearly or 4 half yearly
installments
c
The tractor proposal should have got DSCR d All the above
minimum1:1.75
135 | P a g e
THE WINGS
SBLC, MASULIPATNAM
66. What is the repayment period of a power tiller loan?

a
8 Years including one year
b 9 years including one year
gestation period
gestation period
c
10 years including one year
d 7 Years including one year
gestation period
gestation period
67. Which of the following activities are done by the harvesters?
a
Harvesting & Threshing
b Separating the grain from straw
c
Cleaning the grains and

d All the above
finally collecting / bagging the
grains
68. The minimum acreage a farmer should own for financing a self propelled
Combined Harvester?
a
6 Acres perennially Irrigated land or b 8 Acres perennially Irrigated land
corresponding dry land
or corresponding dry land
c
7 Acres perennially Irrigated land or d 6 Acres perennially Irrigated land
corresponding dry land
or corresponding dry land
PRODUCE MARKETING LOANS
69. The objective of financing Produce loan to the farmers is
a
To avoid distress sale of farm
b To get good price to the farmers
produce immediately after harvest
produce
c
To provide Liquidity to farmers to
d All the above
meet immediate needs
70. Produce loan is a loan given against the stock/ produce stored in a
The Central Ware Housing Corp.
b State Ware Housing Corp.
c
Produce stored even at the house

d
of the farmer if proper storage
facilities are there
71. Who can avail the produce loan?
a
Crop loan borrowers of the Branch
b
c
Even non borrower farmers of the
d
Branch
72 .What is the maximum repayment period of
a
3 Years
b
c
1 Year
d
All the above
Borrowers of other banks

All the above
a produce Marketing loan?
2 Years
9 Months
73. What is the amount of loan sanctioned in a produce Marketing loan?

a
90-95% of the value of the produce B 80-85% of the value of the
depending upon the place of
produce depending upon the
storage subject to a maximum of 10
place of storage subject to a
lacs
maximum of 10 lacs
c
70-90% of the value of the produce d 60% of the value of the produce
storage subject to a maximum of
storage subject to a maximum of
10 lacs
10 lacs
136 | P a g e
THE WINGS
SBLC, MASULIPATNAM
74. In produce Market Loan, the market value of the produce is calculated based
on--a
Minimum support price wherever
b Average price for the past 3
declared
years or the current market price
whichever is lower
c
The Price followed by the Govt.
d The price quoted by the
ware houses or the local prices
Agricultural market committee or
the local prices whichever is
lower
75. What is margin to be maintained when produce loan is given for the produce
stored at farmers house/godown?
a
15%
b 20%
c
30%
d 40%
76. What are the margins to be maintained on produce marketing Loans
sanctioned based on the receipts issued by state /central ware housing corp.
accredited by National Commodity Exchanges and are repayable within 6 months
to upto 12 months
a
15% & 20% respectively
b Uniform margin of 40% of value
of produce
c
25%& 30% respectively
d 30%& 35 % respectively
77. What are the security norms for the produce loans when they are given for the
produce stored at farmers premises and for the loans given against ware house
receipts? What are the limits above which collaterals are obtained in both the
cases?
a
Rs. 5,00,00/- & Rs.10 lacs
b Rs. 4,00,00/- & Rs.10 lacs
respectively
respectively
c
Rs. 3,00,00/- & Rs.10 lacs
d Rs. 1,00,000/- & Rs.10 lacs
respectively
respectively
78. Name of the scheme which takes care both crop production credit as well as
produce Market loan requirements of the farmers simultaneously?
a
Krishak Uttajan Yojana
b Arthias Plus
c
Krishi kalyan
d Crop Loan Plus
79. What is the maximum loan given for farmers for debt swappping?
a
Rs. 2,00,000/b Rs.1,00,000/c
Rs.75,000/-
80. What is a Joint Liability Group?

a
It is group of Self help group ladies b
availing loan from bank on group
guarantee basis
c
Is an informal group comprising
d
preferably of 4 to 10 individuals
coming together for the purposes of
availing bank loan either singly or
through the group mechanism
against mutual guarantee
137 | P a g e
Rs.50,000/It is a group of farmers in the

Rytu Mitra group availing loan
from the bank
Group of 5-10 members
belonging to weaker sections of
the society doing different
activities and availing bank loan.
THE WINGS
SBLC, MASULIPATNAM
81. Which one of the following is the criteria for selection of JLG members?
a
He should be either a tenant farmer
b
Members should be of similar
or a small farmer cultivating land
socio economic status and
without possessing proper title to
background carrying out
their land
farming activities and who
agree to function as a joint
liability group
c
The members should be engaged in
d
All the above
agricultural activity for a continuous
period
of not less than 1 year within the
area of operations of the bank
branch
Govt. Sponsored schemes
82. The target for priority sector advances in case of domestic banks is
a
40% OF Adjusted Net Bank Credit i.e
40% OF ANBC or CEAOBE
ANBC or Credit Equivalent Amount of
Whichever is higher
off- balance sheet Exposures i.e
CEAOBE Whichever is higher
c
30% OF ANBC or CEAOBE Whichever d
is higher
Whichever is higher
83. The target for priority sector advances in case of Foreign banks isa
20% OF ANBC or CEAOBE Whichever b
is higher
Whichever is higher
c
is higher
Whichever is higher
84. Target of total agricultural advances for domestic banks isa
16% OF ANBC or CEAOBE Whichever b
is higher
Whichever is higher
c
is higher
Whichever is higher
85. What are the targets of export credit to domestic and foreign banks?
a
10% & 12% of ANBC or CEAOBE
b
12% & 18% ANBC OR CEOBE
respectively
respectively
c
10% OF ANBC OR CEAOBE equally to d
No targets for domestic Banks
both domestic as well as Foreign
where as for foreign banks it
banks
is12% of ANBC or CEAOBE
86. What is the penalty for non achievement of priority sector lendings by the
domestic banks?
a
They should invest in Rural
b
They should invest in Small
Infrastructure Development
Enterprises development fund
fund(RIDF) established by NABARD
(SEDF), established by SIDBI
c
They should compensate that
d
They should pay the penalty to
shortage in another segment
the Govt.
138 | P a g e
THE WINGS
SBLC, MASULIPATNAM
87. Foreign banks who have not achieved the targeted priority sector lendings are
required to contribute to funds to
a
Rural infrastructure development
b
Funds to be set up with SIDBI
Fund
or with other financial
institutions for such other
purposes as may be stipulated
by RBI from time to time
c
KVIC Development fund
d
Transport & infrastructure
Development Fund
88. The Govt. scheme launched for urban poor is--a
SGSY
b
SJSRY
c
PMEGP
PMRY
89. What is the age limit in SJSRY Govt. scheme for the beneficiary to be selected?
a
30
b
35
c
40
d
No age limit
90.The present SJSRY Govt. scheme replaces which one of the following erstwhile
Govt.schemes ?
a
Nehru Rojgar Yojana (NRY)
b
Urban Basic Services for the
poor
c
Prime Minister Integrated urban
d
All the 3 above
poverty eradication prog.(PMIUPEP)
91. What are the 2 special schemes in SJSRY?
a
Urban Self employment Prog.( USEP) b
Urban Women self help prog.
A&b
Urban Basic Services for the poor
92. What is the max. loan amount under UWSP( for groups) of SJSRY?
a
Rs. 5 lakhs
b
Rs.10 lakhs
c
Rs.15 lakhs
d
No Maximum limit
93. Name the Govt .scheme launched for Rural poor?
a
SJSRY
b
SGSY
c
TRYSEM
RLEGP
94. The assisted families in SGSY are known as-a

Beneficiaries
b
Grahaks
None of these
Swarojgaries
95. The basis for selection of beneficiaries under SGSY is---a

BPL survey List duly approved by
b
On the basis of first come first
Grama Sabha
served
c
Based on the list of borrowers
d
The village secretary will finalize
prepared by the DRDA
the names
96. The selection committee in SGSY consists of--a
DRDA representative, Banker,
b
DRDA rep.,Village secretary,
Sarpanch
Banker,
c
MDO, Banker & DRDA REP
d
MDO, Banker & Sarpanch
139 | P a g e
THE WINGS
SBLC, MASULIPATNAM
97. In which of the following scheme erstwhile IRDP has been merged ?
a
SGSY
b
SJSRY
c
PMEGP
RLEGP
98. What is the target for SCs under SGSY scheme?

a
25%
b
35%
c
40%
d
50%
99. To be eligible under SGSY Scheme, the income should be-a
Less than Rs.50,000/b
Less than Rs.40,000/c
Less than Rs.35,000/-
Less than Rs.24,000/-
100. Under SGSY scheme what are the limits beyond which security is obtained
both in individuals and groups
a
Rs.1 lac & 3 lac respectively
B
c
101. The net income of the swarojgaries (The assisted family in SGSY) should not
be less than Rs.----- in the 3rd year
a
Rs.5000/b
Rs.4500/c
Rs.3000/-
Rs.2000/-
102. Expand what is PMEGP, a New Government Scheme ?

a
Primary Education For Growth and
b
Prime Ministers Education
Progress
scheme For Growth And
Process
c
Prime Ministers Employment
d
Prime Ministers Employment
Generation Programme
Guarantee Programme
103. Which of the following schemes have been merged for formation of PMEGP?
a
PMRY & SGSY
b
SGSY & SJSRY
c
PMRY & IRDP
PMRY & REGP
104. Under PMEGP Scheme What is the maximum cost of the project admissible
under manufacturing sector is Rs.__________
a Rs.10 lacs
bRs.15 lacs
c
Rs.20 lacs
Rs.25 lacs
105. Under PMEGP Scheme, What is the maximum cost of the project admissible
under Business/ Service sector sector is Rs.__________
a
Rs.5 lacs
b
Rs.10 lacs
c
Rs.15 lacs
d
Rs.25 lacs
106. Under PMEGP for setting up project costing above Rs. 10 lakhs in
manufacturing sector and project costing above Rs.5 lakhs in business/service
sector, the beneficiaries should possess educational qualification of _________
a
8th standard fail
b
8th standard pass
c
10th fail
d
10th pass
140 | P a g e
THE WINGS
SBLC, MASULIPATNAM
107. Under PMEGP, rate of subsidy available for units to be set up in urban areas
by general category beneficiaries
a
10%
b
15%
c
25%
d
35%
108. Under PMEGP, rate of subsidy available for units to be set up in rural by
SC/ST beneficiaries
a
10 %
b
15%
c
25%
d
35%
109. The concept of Self Help Groups is Originated from Which country?
a
Srilanka
b
Bangladesh
c
Thailand
d
Indonesia
110. Who is called the Father of SHG movement?
a
Mahatma Gandhi
b
Sheik. Haseena
Ayub Khan
Md. Yunus
111. An SHG group can be Financed --a

6 months after opening of a Savings b
6 months after formation of
account
group
c
12 months after opening of SB
d
12 months after formation of
account
group
112. In SHG finance who signs the Inter-se Agreement?
a
The President and Secretary of the
b
All the members of the group
Group
c
The Branch Manager
DRDA Authorities
113. The objective of financing Cold storages by the bank isa

To arrest the post harvest losses of
b
Arrest wide scale price
the farm produce
fluctuations
in prices of horticultural
produce,
c
To create a cold chain infrastructure
d
All the above
from farm to the consumer
114. Cold storage units with a capacity of ---- tones storage capacity are only
eligible for capital subsidy of the Government
a
10,000 M.T
b
7000 MT
c
6000 MT
5000 MT
115. The cold storage units located not in N.E states and those not belonging to
SC/ST borrowers with a capacity of 5000 M.T and above storage capacity are
eligible to get a capital subsidy up to ---a
15% of project Cost subject to a
b
15% of project Cost subject to
maximum of Rs.25 Lacs
a maximum of Rs.35 Lacs
c
d
141 | P a g e
THE WINGS
SBLC, MASULIPATNAM
116. The cold storage units with a storage capacity of 5000 M.T and above located
in N.E states and those belonging to SC/ST borrowers are eligible to get a capital
subsidy up to-a
b
c

33.33% of project Cost subject

to a maximum of Rs.60 Lacs
117. Who will provide subsidy in case of cold storages?

a
NABARD
b
National Horticultural
Board(NHB)
c
Respective State Govt.
d
KVIC
118. After construction of the cold storage a joint inspection of the unit is
conducted by the monitoring committee consisting of -a
In-charge of NHBs centre from the
b
Financing Bank representative
concerned state
c
Official from NABARD
All the above
119. The pattern of assistance a cold storage is

a
25 % promoters Contribution
b
(Margin)
(Margin)
50 % Term Loan from Bank
25 % back-ended Capital Investment
25 % back-ended Capital
Subsidy by NHB
Investment Subsidy by NHB
c
d
(Margin)
(Margin)
25 % back-ended Capital Investment
25 % back-ended Capital
Subsidy by NHB
Investment Subsidy by NHB
120. In respect of cold storage unit Which of the following statement is wrong?
a
Disbursement of Term Loan would be b
NO interest is charged on that
upto 75% of the project cost i.e.
portion of the loan equal to the
inclusive of
subsidy amount.
eligible back ended subsidy
c
No interest is payable on the subsidy

received and parked in the Subsidy
Reserves Fund Account.
Subsidy is front end.
121. Name the scheme which is devised for construction/renovation & and
expansion of Rural Godowns ?
a
Arthias plus
b
Gramin Bhanar Yojana
c
Krishak Uttajan Yojana
d
Krishi Kalyan
142 | P a g e
THE WINGS
SBLC, MASULIPATNAM
122. In Gramin Bhandar Yojana scheme, 50% of eligible subsidy will be released as
an advance subsidy by NABARD on--a
The basis of application at the time
b
The proposal should be wetted
of beginning itself
by NABARD officials.
c
On submission of project and

immediately on sanction of the loan
by the Bank.
After having one preliminary

inspection by the NABARD
officials soon after disbursal of
the loan.
123. Name of the scheme which is meant for technically qualified persons in
Agriculture ( Trained Agricultural graduates )
a
Agriclinics & Agri Business Centres
b
Agri Business Plus
c
Agri Malls
d
Agri Ventures
124. What is the maximum loan eligible for Group of Agricultural graduates under
Agri. clinics and Agri. Business Centers
a
Rs.15 Lacs
b
Rs.20 Lacs
c
Rs.30 Lacs
Rs. 100 Lacs
125. The Nodal Implementing Agency of the concept of SHG in India

a
RBI
b
Cental Govt.
c
NABARD
d
Respective State Govt.
ANSWERS FOR AGRICULTURAL & GOVT. SPONSORED SCHEMES

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
d
d
c
d
c
a
a
c
b
d
b
b
d
a
d
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
b
b
b
d
d
a
d
c
d
d
c
c
c
d
c
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
c
d
a
d
b
a
d
b
b
d
c
d
d
c
c
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
d
d
d
b
c
b
c
c
d
b
a
c
a
d
c
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
c
d
c
c
d
b
d
b
d
d
d
c
d
a
d
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90
143 | P a g e
b
d
c
b
c
d
a
d
c
d
a
b
b
d
d
91.
92.
93.
94.
95.
96.
97.
98.
99.
100.
101.
102.
103.
104.
105.
d
d
b
c
a
d
c
d
d
c
d
c
d
d
b
106.
107.
108.
109.
110.
111.
112.
113.
114.
115.
116.
117.
118.
119.
120.
b
b
d
b
c
b
b
d
d
c
d
b
d
a
d
121.
122.
123.
124.
125.
b
c
a
d
c
THE WINGS
SBLC, MASULIPATNAM
SME ASSET PRODUCTS

[Prepared by Shri T.V.N.B.Raju, Chief Manager (Trg)]
(Q. No. 1 to 10 on SME SMART SCORE)
1.
The maximum amount of loan that can be sanctioned to a Manufacturing
unit under SME Smart Score?
a) Rs.10 Lacs
b) Rs.5 Lacs
c) Rs.50 Lacs
d) Rs.25 Lacs
2.
The minimum amount of Loan that can be sanctioned to a Manufacturing unit

under SME Smart Score?
a) Rs.5 Lacs
b) Rs.25 Lacs
c) Rs.10 Lacs
d) Rs.2 Lacs
3.
The margin stipulated for a term loan under SME Smart Score is______.
a) 25%
b) 20%
c) 33%
d) 30%
4.
The minimum percentage of score that an applicant should get in order to

avail a loan under SME Smart Score?
a) 60% (with a minimum score of
b) 75% (with a minimum score of
50% under each sub head)
c) 50% (with a minimum score of
d) 70% (with a minimum score of
5.
The maximum amount of loan that can be sanctioned under SME Smart
Score for a Trader / Service provider?
a) Rs.100 Lacs
b) Rs.50 Lacs
c) Rs.60 Lacs
d) Rs.25 Lacs
6.
What percent of annual turn over can be financed as working capital under
SME Smart Score for a manufacturing unit?
a) 20%
b) 15%
c) 25%
d) 30%
7.
What percent of annual turn over can be financed as working capital under
SME Smart Score for an unit dealing in Trade & Services?
a) 25%
b) 15%
c) 20%
d) 30%
8.
The maximum repayment period that can be allowed for a term loan under
SME Smart Score?
a) 5 years excluding moratorium of 6 b) 5 years including moratorium of
months
6 months
c) 7 years including moratorium of 6
d) 7 years excluding moratorium
months
of 6 months
9.
The age criteria stipulated for the promoter/ applicant to avail a loan under
SME Smart Score is___________.
a) Min 21 Yrs- Max 65 Yrs.
b) Min 21 Yrs- Max 70 Yrs.
c) Min 18 Yrs- Max 65 Yrs.
d) Min 18 Yrs- Max 60 Yrs.
144 | P a g e
THE WINGS
10.
SBLC, MASULIPATNAM
Which of the following is true?

a) Loans not approved under SME
Smart Score can be financed under
the normal credit dispensation
based on considerations.
c) Margins stipulated under SME
Smart score are 25% for WC and
33% for TL
b) SME Smart Score is renewed

once in 2 years and reviewed
every year
d) All the above
(Q. No. 11 to 18 on TRADERS EASY LOAN)

11. Maximum quantum of finance that can be extended under Traders Easy Loan
a) Rs.2 Crores
b) Rs.10 Crores
c) Rs.5 Crores
d) Rs.50 Crores
12.
Minimum quantum of finance that can be extended under Traders Easy Loan
a) Rs.0.25 Lacs
b) Rs.0.50 Lacs
c) Rs.1.00 Crore
d) No minimum amount stipulated
13.
Under Traders Easy Loan, finance can be extended upto _____ percentage of
the realizable value of the property mortgaged.
a) 50%
b) 75%
c) 70%
d) 65%
14.
Which of the following is True with respect to Traders Easy Loan?

a) Open land should not be accepted
b) TDRs/NSCs can be accepted as
as a security.
a collateral security
c) Credit requirement is fixed at 20% d) All the above
of Projected Annual Turn Over
15.
Which of the following target groups is eligible under Traders Easy Loan?
a) Oil Mills, Cotton ginning Mills
b) Professional & Self employed
c) Commission Agents engaged food
d) All the above
grains
16.
Which of the following is a feature of Traders

a) Stock statements are to furnished
b)
quarterly i.e. Feb, May, Aug, Nov
c) In case of C.C., the credit
d)
summations should be atleast
200% of the C.C. limit sanctioned.
17.
The quantum of finance that can be extended under Traders Easy Loan is:
a) 75% of capital cost to be incurred
b) 75% of capital cost to be
for business or 65% of realizable
incurred for business or 65% of
value of the property or 20% of
realizable value of property or
the annual projected turn over.
25% of annual projected turn
over
c) 75% of the capital cost to be incu- d) 70% of capital cost to be incurred for business or 75% of realirred for business or 65% of
zable value of the property or 20%
realizable value of property or
of the annual projected turn over.
20% of annual projected turn
over
145 | P a g e
Easy Loan?
Limit sanctioned is valid for two
years subject to annual review
All the above
THE WINGS
18.
SBLC, MASULIPATNAM
Which of the following is not true with respect to Traders Easy Loan?
a) Stocks statements are to be
b) Traders Easy Loan can be
obtained at monthly intervals.
sanctioned as DL/TL/CC.
c) The primary security for the loan
d) Rice Mills can also be
would be hypothecation of Stock
considered for financing.
only.
(Q. No. 19 to 27 on SME CREDIT CARD):

19. The maximum quantum of loan that can be extended under SME Credit Card
is:
a) Rs.10 Lacs
b) Rs.20 Lacs
c) Rs.10 Lacs fro Traders & Rs.20
d) Rs.25 Lacs
Lacs for Manufacturing Units
20.
The SME Credit Card is sanctioned for a period of ________.

a) 2 years, subject to annual review
b) 3 years, subject to annual
review
c) One year
d) 3 years
21.
The minimum score, an applicant should get to be eligible for availing finance
under SME Credit Card is:
a) 60%
b) 65%
c) 70%
d) 50%
22.
The maximum age criteria stipulated under SME Credit Card is___________.
a) 65 years
b) 70 Years
c) 66 Years
d) No maximum age stipulated
23.
Which of the following is true with respect to SME Credit Card?

a) No collateral is insisted upon for
b) For SBF units, collateral/third
SSI units
party guarantee is obtained if
the loan is more than
Rs.25,000/c) Maximum repayment for the term
d) All the above
loan component is 5 years.
24.
Which of the following is true with respect to SME Credit Card?

a) The limit will be reviewed every
b) A repayment schedule has to
year
be fixed if the credit
summations are less than 50%
of Projected Annual turn over.
c) Both CC and TL can be sanctioned d) All the above.
under the scheme.
25.
Under SME Credit Card scheme, which of the following is Not true?
a) Cheque book to be marked as SME b) Stock statement is obtained
Credit Card
once in a year, preferably in
last quarter
c) Borrower can be issued a Photo
d) Detailed Opinion reports are to
Identity Card
compiled and should be on
record.
146 | P a g e
THE WINGS
SBLC, MASULIPATNAM
26.
Who among the following is not eligible for finance under SME Credit Card?
a) Self employed with a credit
b) Professionals with credit
requirement of Rs.10 Lacs
c) Village Industries with a credit
d) SSI units with credit
requirement of Rs.7.5 Lacs
27.
Which product do you suggest to a small manufacturer whose credit limit

requirement is Rs.25 Lacs and who wishes that the facility can be sanctioned
for a period of 2 years?
a) SME Credit Card
b) Traders Easy Loan
c) SME Smart Score
d) SME Credit Plus
(Q. No. 28 to 42 on DOCTOR PLUS):

28.
The maximum amount of Loan that can be extended under Doctor Plus
Scheme is ________.
a) Rs.1 Crore
b) Rs.2 Crores
c) Rs.5 Crores
d) Rs.10 Crores
29.
Who among the following is eligible to avail finance under Doctor Plus
scheme?
a) Partnerships, Individuals
b) Corporates
c) Trusts with powers to borrow
d) All the above
30.
The minimum DSCR stipulated for loans under Doctor Plus is ________.
a) 1:1.5
b) 1:1.75
c) 1:1.15
d) 1:1.33
31.
Which of the following is Correct with respect to Doctor Plus Scheme?

a) The loan can be sanctioned as
b) The loan can be sanctioned as
Medium Term Loan/Cash Credit
an Overdraft.
c) The loan can also be sanctioned as d) The loan can be sanctioned as
Demand Loan.
a Medium Term Loan/Cash
Credit/Demand Loan/O.D.
32.
Maximum Moratorium that can be allowed for loans sanctioned under

Doctor Plus scheme is: ____________.
a) 6 months
b) 12 months
c) 18 months
d) Till the doctor's practice is
stabilized subject to a
maximum of 18 months.
33.
The maximum amount that can be sanctioned to an individual under Doctor

Plus scheme at Metro / Urban centres is:
a) Rs.10 Crores
b) Rs.5 Crores
c) Rs.2 Crores
d) Rs.1Crores
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34.
35.
SBLC, MASULIPATNAM
Which of the following is True under Doctor

a) The collateral security for loans
b)
above Rs.25 lacs and upto Rs.1
Crore should be at least 25% of
the loan amount. Alternatively,
eligible accounts may be covered
under CGTMSE scheme.
Plus Scheme?
The collateral security for loans
for loans sanctioned to Micro &
Small Enterprises above Rs.1
Crore should be at least 25% of
the loan amount and also
Personal guarantee of the
promoters.
d) all the above
c) The primary security will be

hypothecation of Assets financed
by the Bank
Which of the following can be considered for finance under Doctor Plus
scheme?
a) Setting up clinic and Purchase of
b) Expansion/renovation etc.
Ambulance
c) Setting up Nursing home and
d) All the above
Purchase of Computers etc.
36.
The margin stipulated for loans upto Rs.10 Lacs under Doctor Plus scheme?
a) 15%
b) 25%
c) 20%
d) 10%
37.
The margin stipulated for loans above Rs.10 lacs and upto Rs.5 crs is:
a) 25%
b) 20%
c) 30%
d) 15%
38.
Which of the following is NOT a salient feature of the product Doctor Plus?
a) Multiple disbursements over a
b) 50% concession over the Card
period of 24 months form date of
rates in Upfront Fee/Processing
sanction based on requirements
Charges is extended.
can be made.
c) The inspection of the unit should
d) All eligible advances can be
be carried out at Monthly/quarterly
covered under CGTMSE.
intervals.
Maximum marks under Scoring Model for Doctor Plus scheme_____.
a) 50
b) 100
c) 75
d) 90
39.
40.
Which of the following is NOT true with respect to Doctor Plus scheme?
a) The rate of Interest for limits up to b) Minimum score of 40 on credit
Rs.25 lacs will be based on Credit
scoring model is required to be
Scoring Model.
eligible for the loan.
c) For limits above Rs.25 lacs and up
to Rs.10 crores, the Pricing will be
based on CRA rating.
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d) Units with CRA Rating below SB

8 can be considered subject to
premium pricing of 100 basis
points.
THE WINGS
SBLC, MASULIPATNAM
41.
The hurdle score for Personal Details and Business scoring under Scoring
Model of Doctor Plus scheme (for loans upto Rs.25 Lacs) are ___ & _______
respectively (out of 32 & 43 respy).
a) 15, 20
b) 20,25
c) 17,22
d) 16,23
42.
For Non Allopathic doctors (Unani, Ayurvedic,Homeopathic), the maximum

quantum of loan that can be extended under Doctor Plus is ____.
a) Rs.50Lacs
b) Rs.20 Lacs
c) Rs.25 Lacs
d) Rs.10 Lacs
(Q. No. 43 to 47 on SCHOOL PLUS):

43. Maximum quantum of finance that can be extended under School Plus is___.
a) Rs.10 Crores
b) Rs.5 Crores
c) Rs.20 Crores
d) No Maximum cap
44.
Which of the following is NOT true with respect to School Plus scheme?
a) It can be extended to Primary and b) Coaching institutes can also be
higher secondary schools.
financed under the scheme and
no CRA is required.
c) Graduation & Post Graduation
d) Government Aided
colleges can also be financed.
schools/colleges are also
eligible under the Scheme.
45.
The margin stipulated under School Plus is_______.

a) 15%
b) 25%
c) 20%
d) 33%
46.
Can a Computer training institution be extended finance under School Plus?

a) Yes
b) No.
c) No. They can be considered under d) Yes subject to collateral
regular CRA model or mortgage
coverage of 75%.
loan only.
47.
Which of the following is True with respect to School Plus?

a) Purchase of Laboratory & Sports
b) Maximum repayment allowed is
equipments, purchase of play
84 EMIs only.
ground and buses etc. can be
financed under the scheme.
c) More than one loan can be
d) All the above.
sanctioned subject to repayment
capacity of the unit.
(Q. No. 48 to 52 on RENT PLUS):

48. The maximum amount of loan that can be sanctioned under Rent Plus
is:_____.
a) Rs.10 Crores
b) Rs.5 Crores
c) Rs.2 Crores
d) Rs.1 Crore
49.
Margin stipulated under Rent Plus scheme is___________.

a) 30%
b) 25%
c) 40%
d) 33%
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50.
51.
52.
SBLC, MASULIPATNAM
Maximum repayment allowed for TLs sanctioned under Rent Plus scheme is :
a) 7 years or the residual lease period b) 5 years or the residual lease
whichever is less.
period whichever is less
c) 7 years or the residual lease period d) 7 years or the residual lease
whichever is less, subject to a
period whichever is higher.
moratorium of 6 months.
The minimum amount that can be sanctioned under Rent Plus is______.
a) Rs.1,00,000
b) Rs.5,00,000
c) Rs.50,000
d) Rs.25,000
The quantum of finance under Rent Plus scheme will be arrived as_______.
a) 60% of the gross rental income for b) 85% of the gross rental income
the residual period (net of advance
for the residual period (net of
rent received & statutory dues) or
advance rent received &
85% of the market value of the
statutory dues) or 60% of the
property whichever is less.
market value of the property
whichever is less.
c) 60% of the gross rental income for d) 75% of the gross rental income
the residual period (net of advance
for the residual period (net of
rent received & statutory dues) or
advance rent received &
75% of the market value of the
statutory dues) or 85% of the
property whichever is less.
market value of the property
whichever is less.
(Q.No. 53 to 67 on SBI SME COLLATERAL FREE LOANS (SMECFL):

53.
In case of non corporate borrower, the Minimum and maximum age of the
applicant, stipulated for loans under SMECFL are:
a) No age limit
b) 18,65
c) 21,66
d) 21,70
54.
The maximum amount of loan that can be sanctioned under SMECFL is:
a) Rs.2 Crores
b) Rs. 1 Crore
c) Rs.50 Lacs
d) Rs.75 Lacs
55.
Which of the following is true with respect to SBI SME CFL?

a) For Loans below Rs.25 Lacs,
b) For Loans above Rs.25 Lacs and
preliminary screening will be as per
upto Rs.1 Crore, Simplified CRA
normal dispensation
will be applicable.
c) WC is to be renewed every two
d) All the above
years and review will be annually.
Which of the following is True with respect to assessment of limits under SBI
SME CFL?
a) The Working capital eligibility for
b) The working capital eligibility
manufacturing units, would be
for service enterprises would be
20% of projected turn over & the
15% of projected revenue and
eligibility for Term Loans is 75% of
for term loans it is 75% of the
the project cost.
project cost.
c) Rs.1.00 crore is the cap for both
d) All the above.
fund based and non-fund based
limits
56.
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THE WINGS
SBLC, MASULIPATNAM
57.
The one time guarantee fee payable to CGTMSE would be in the range of
___.
a) 0.75 to 1.50
b) 0.50 to 2.00
c) 0.75 to 2.00
d) 0.50 to 1.50
58.
The upfront guarantee fee payable to CGTMSE for loans upto Rs.5 lacs
is____.
a) 0.75
b) 1.00
c) 1.50
d) No fee
59.
The upfront guarantee fee payable to CGTMSE for loans above Rs.5 lacs and
upto Rs.50 Lacs is____.
a) 0.50
b) 0.75
c) 1.00
d) 1.50
60.
The upfront guarantee fee payable to CGTMSE for loans upto Rs.5 lacs in
North East region is ______.
a) 0.75
b) 1.50
c) 1.00
d) 0.50
61.
upto Rs.50 Lacs in North East region is ______.
a) 1.50
b) 2.00
c) 1.00
d) Fee waived for NE region
62.
upto Rs.100 Lacs in North East region is ______.
a) 1.50
b) 1.00
c) 2.00
d) Fee waived for NE region
63.
The annual fee payable to CGTMSE on loans above Rs.50 Lacs and upto Rs.1
Crore is_______.
a) 0.75
b) 1.00
c) 1.50
d) 0.50
64.
The annual fee payable to CGTMSE on loans above Rs.5 Lacs and upto Rs.50
Lacs is_______.
a) 1.00
b) 0.75
c) 0.50
d) Waived
65.
The guarantee fee payable to CGTMSE should be paid within _____ days from
the date of first disbursement or _____ days from the date of demand advice,
whichever is later.
a) 30,30
b) 60,60
c) 60,60
d) 60,30
66.
The annual fee for the credit facilities sanctioned as on March31st should be
paid to CGTMSE on or before ________.
a) 30th April
b) 30th September
c) 31st May
d) 30th June
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67.
SBLC, MASULIPATNAM
Which of the following is NOT true with respect to CGTMSE?

a) The credit facilities sanctioned to
b) The guarantee cover will be for
Self Help Groups cannot be
a period of 5 years where only
covered under the scheme.
working capital facilities are
sanctioned, subject to payment
of annual service fee.
c) Small road and water transport
d) Existing borrowers who have
loans are also eligible for
already availed finance cannot
guarantee cover.
be covered under the scheme.
(Q. No. 68 to 100 on Other SME PRODUCTS):

68. The maximum amount of loan that can be sanctioned under SBI Micro Loan
is___.
a) Rs.10 Lacs
b) Rs.25 Lacs
c) Rs.5 Lacs
d) Rs.50 Lacs
69.
The demand loan sanctioned under SBI Micro Loan is repayable within _____.
a) 1 year
b) 5 years
c) 3 years
d) No demand loan is sanctioned
70.
The maximum amount of loan that can be sanctioned under Artisan Credit Card
is___.
a) Rs. 2 Lacs
b) Rs.10 Lacs
c) Rs.5 Lacs
d) Nil
71.
The amount of loan that can be considered under Swarojgar Credit Card
is_____.
a) Rs.25000, Can be increased to
b) Rs.50,000
Rs.30,000 in deserving cases.
c) Rs.1 Lac
d) Rs.20,000, Can be increased to
Rs.30,000 in deserving cases
72.
The minimum educational qualification as stipulated in Cyber Plus scheme is:___

a) Any Graduation
b) +2 or XII Pass
c) 10th Std Pass
d) No minimum educational
qualification prescribed.
73.
The quantum of finance that can be extended under Cyber Plus is: ________.
a) Rs.1 Lac
b) Rs.50,000
c) Rs.75,000
d) Depending upon the no. of systems
purchased.
74.
The minimum and maximum age stipulations as prescribed under Cyber Plus
scheme are:
a) 21,45
b) 21,60
c) 18,45
d) 18,60
75.
Under SME Credit Plus, ____% of aggregate working capital limit subject to a
maximum of Rs.25 Lacs can be sanctioned.
a) 10%
b) 20%
c) 25%
d) 15%
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THE WINGS
SBLC, MASULIPATNAM
76.
The maximum time period allowed for repayment of SME Credit Plus is _____.
a) 3 months
b) 1 month
c) 6 months
d) 2 months.
77.
SME Credit Plus can be sanctioned for which of the following purposes?
a) tax payments
b) repairs to machinery
c) any other contingency
d) all the above
78.
Which of the following is TRUE with respect

a) It is sanctioned to meet sudden
b)
and unforeseen expenditure/bulk
orders.
c) It can be sanctioned to new
d)
borrowers also as a marketing tool.
79.
The maximum quantum of finance that can be extended under Stand by Line
of Credit is: ___________.
a) Rs.5 Crores
b) Rs.2 Crores
c) Rs.1 Crores
d) Rs.10 Crores
80.
Under Stand by Line of Credit , ____% of working capital limit subject to a

maximum of Rs.5 Crores can be sanctioned.
a) 10
b) 20
c) 15
d) 25
81.
The maximum time allowed for repayment of Stand by Line of Credit is____.
a) 1 month
b) 2 months
c) 3 months
d) 6 months
82.
The maximum amount of loan that can be sanctioned under General Purpose
Term loan for SSI sector is___.
a) Rs.1 Crores
b) Rs.2 Crores
c) Rs.50 Lacs
d) Rs.5 Crores
83.
Which of the following is true with respect to General Purpose Term Loan for
SSI sector?
a) Normal repayment allowed is 3
b) The unit should have earned
years and can be extended upto 5
profits in preceding 3 years.
years in deserving cases.
c) The margin stipulated is 25%
d) All the above
84.
The maximum amount of finance that can be extended under Open Term Loan
(Manufacturing sector) is:
a) Rs.250 Lacs
b) Rs.500 Lacs
c) Rs.100 Lacs
d) Rs.200 Lacs
85.
Under Open Term Loan, the sanction is valid upto:

a) 6 months
b) 3 months
c) 12 months
d) 1 month
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to SME Credit Plus?

It is sanctioned as a additional
working capital limit by way of
clean cash credit.
All the above.
THE WINGS
SBLC, MASULIPATNAM
86.
Which of the following is a feature of Open Term Loan?

a) It's a pre sanctioned term loan
b) Non customers can also be consilimit with the option of multiple
dered subject to fulfillment of take
disbursements.
over norms and after obtaining opinion reports from existing Bankers.
c) DSCR should be atleast 1.75
d) All of these
87.
The maximum amount of finance that can be extended under Open Term Loan
(For Services sector) is:
a) Rs.250 Lacs
b) Rs.200 Lacs
c) Rs.100 Lacs
d) Rs.50 Lacs
88.
The maximum quantum of loan that can be sanctioned to a Commission Agent

under Arthias Plus is:_____
a) Rs.25 Lacs
b) Rs.50 Lacs
c) Rs.1 Crore
d) Rs.10 Lacs
89.
Which of the following is true in respect of Arthias Plus?

a) It is a Cash Credit facility against
b) To be liquidated within 6 months
hypothecation of book debts, not
and to be renewed annually.
older than 6 months.
c) The margin stipulated is 40%.
d) All the above
90.
The maximum quantum of loan that can be sanctioned under SBI Shoppe
is____.
a) Rs.20 Lacs
b) Rs.50 Lacs
c) Rs.100 Lacs
d) Rs.200 Lacs
91.
The product in which two term loans are sanctioned, one for Housing and
another for setting up an office/shop is _____.
a) SBI Super Shoppe
b) SBI Home Shoppe
c) SBI Shoppe Plus
d) SBI Shoppe
92.
The quantum of finance that can be extended under SBI Shoppe plus is____.
a) 1st Term Loan as per Housing loan b) 75% of Cost of total Project
Scheme and 75% of cost of
setting up office/shop as 2nd T.L
c) Both the term loans will be
d) Both the term loans will be
considered as Commercial Loans
considered as Housing Loans.
93.
Which of the following is TRUE with respect

a) Finance can be extended for
b)
purchase of car/ sports utility
vehicle/ multi utility vehicle by
Promoter/ his family members.
c) Margins prescribed are 15% and
d)
no additional security will be
insisted upon. Maximum amount of
loan for a used vehicle is Rs.15
lacs
154 | P a g e
to Car Loans to SME units?

Maximum loan amount would be
2.5 times to Net annual Income
and there is no ceiling in loan
amount.
All the above
THE WINGS
SBLC, MASULIPATNAM
94.
The quantum of finance that can be extended to a Corporate under Transport

Plus is:
a) Rs.10 Crores
b) Rs.7.5 Crores
c) Rs.5 Crores
d) Rs.2.5 Crores
95.
The minimum current ratio, Average DSCR (gross) and TOL/TNW as prescribed
in the scheme "Transport Plus" are:
a) 1.33, 1.75, 2.75
b) 1.33, 2, 2.75
c) 1.33, 1.75, 3.00
d) 1.33, 1.75, 2.50
96.
The name of the scheme aimed at financing primary/secondary schools with a

tie up with Zee Interactive Learning Systems (ZILS) is______
a) SBIZILS
b) ZEEKIDS
c) KIDZEE
d) SBI ZIL KIDS
97.
Maximum amount of loan that can be sanctioned under Auto Clean is____.
a) Rs.50,000
b) 25% of the cost of kits subject to a
maximum of Rs.25,000
c) Rs.25,000
d) Rs50,000
98.
Maximum amount of loan that can be extended under SBI-Dental Equipment

Plus scheme and the minimum DSCR required are _____ & _______
respectively.
a) Rs.20 Lacs & 1.5
b) Rs.20 Lacs & 1.75
c) Rs.10 Lacs & 1.5
d) Rs.10 Lacs & 1.75
99.
The minimum amount of loan under Paryatan Plus is_____.

a) Rs.10 Lacs
b) Rs.2 Lacs
c) Rs.5 Lacs
d) No minimum is stipulated.
100. Margin stipulated for purchase of used vehicles under Paryatan Plus is:_____
a) 30%
b) 50%
c) 40%
d) 33%
ANSWERS
d 6.
a
1.
2.
3.
4.
5.
11.
12
13.
14.
15.
16.
21.
a 22
23.
24.
25.
31.
a 32
33.
34.
35.
41.
a 42
43.
44.
51.
52
53.
54.
61.
a 62
63.
71.
a 72
73.
81.
b 82.
91.
92.
7.
8.
9.
10.
17.
18.
19.
20.
26.
27.
28.
29.
30.
36.
37.
38.
39.
40.
45.
46.
47.
48.
49.
50.
55.
56.
57.
58.
59.
60.
64.
65.
66.
67.
68.
69.
70.
74.
75.
76.
77.
78.
79.
80.
83.
84.
85.
86.
87.
88.
89.
90.
93.
94.
95.
96.
97
98.
99.
100.
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SBLC, MASULIPATNAM
SME ADVANCES (Compiled by Shri G.V.Rao, Manager (Training))

1. Power Jyothi is a
a) SB account for fee collection.
c) A Current A/c for fee collection
b) Current A/c for bill receipts.

2. e-DFS facility is for

a) financing dealers of companies.
c) financing realtors.
b) financing share brokers.

d) financing dealers of stock exchanges.
3. Whenever S Format is used for assessment, control/review of the proposal will

be done in
a) AC Format
b) SA Format
c) AS Format
d) S-1 Format
4. RBI can conduct financial inspection of individual banks under
a) Section 34 of RBI Act
b) Section 35 of RBI Act
c) Section 31 of RBI Act
d) Section 32 of RBI Act
5. S Format is used for
a) Assessment and appraisal of small loans.
b) Assessment and appraisal of loans up to Rs.25.00 lakhs
c) Assessment and appraisal of loans above Rs.25.00 lakhs.
d) Assessment and appraisal of loans above Rs.5.00 Crores.
6. CGTMSE stands for
a) Credit Guarantee Fund Trust for Medium and Small Enterprises
b) Credit Guarantee Trust for Medium Scale Industries
c) Credit General Trust for Medium and Small Enterprises.
d) Collateral Guarantee Trust for Medium Scale Enterprises.
7. For advance to a retail trader to be classified under SBF, the limit should not
exceed
a) Rs.20.00 lakhs
b) Rs.10.00 lakhs
c) Rs.12.00 lakhs
d) Rs.50.00 lakhs
8. Traders Easy Loan is sanctioned for a period of
a) 2 years subject to annual review.
b) 1 year only.
c) 3 years subject to annual review.
d) 2 years and no annual review.
9. The outer limit for original investment in P&M for a unit to be classified as micro
enterprise is
a) Rs.25.00 lakhs excluding L&B
b) Rs.25.00 lakhs including L&B
c) Rs.10.00 lakhs excluding L&B
d) Rs.10.00 lakhs including L&B
10. A manufacturing unit with original investment in P&M more than Rs.5.00 Cr but
doesnt exceed Rs.10.00 Cr is classified under MSMED act as
a) Micro enterprise
b) Small enterprise
c) Medium enterprise
d) Not applicable.
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11. The outer limit for original investment in equipment of a service enterprise to be
classified as micro enterprise is Rs. _________ lakhs.
a) 5.00
b) 10.00
c) 7.50
d) 20.00
12. SME car loan can be
a. Extended to customer of other banks after obtaining NOC from their bank.
b. Extended to customer of other banks without obtaining NOC from their bank
and the same need not be informed to their bank.
c. Extended to customer of other banks without obtaining NOC from their bank,
but the sanction of loan to be advised.
d. None of the above.
13. As per RBI guidelines, how much of the advances to Micro & Small enterprises
should go to Micro enterprises (manufacturing) having investment in P&M up to
Rs.5.00 lakhs and micro enterprises (services) having investment in equipment
up to Rs.2.00 lakhs ?
a) 40%
b) 20%
c) 50%
d) 35%
14. As per RBI guidelines, how much of the advances to Micro & Small Enterprises
should go to Micro enterprises (manufacturing) having investment in P&M above
Rs.5.00 lakhs and up to Rs.25.00 lakhs and Micro enterprises (services) having
investment in equipment above Rs.2.00 lakhs and up to Rs.10.00 lakhs.
a) 40%
b) 20%
c) 50%
d) 35%
15. As per RBI guidelines, what is the share of Micro enterprise advances as part of
total advances to MSE (Micro & Small Enterprises).
a) 50%
b) 80%
c) 60%
d) 55%
16. As per Prime Ministers task force on MSMEs (Micro, small and medium
enterprises), the credit growth rate recommended for this sector is
a) 25%
b) 10%
c) 15%
d) 20%
17. As per Prime Ministers task force on MSMEs (Micro, small and medium
enterprises), the no of accounts growth rate recommended for this sector is
a) 10%
b) 15%
c) 17%
d) 12%
18. Recently SBI has launched SME POWER which is
a) A bundle of 7 different products b) a bundle of 8 different products
c) A bundle of 8 different C/As
19. Which of the following are names offered under SME Power?
a. power pack, power premium, power lite & power base
b. power pack, power premium, power plan & power base
c. power pack, power plan , power prudential & power core.
d. Power pack, power proof, power plan & power core.
20. The variants under SME power are offered to SME customers who can maintain :
a. QAB of Rs.20,000/- to Rs.5,00,000/b. Monthly average balances of Rs.20,000/- to Rs.5,00,000/c. QAB of Rs.50,000/- to Rs.5,00,000/d. Monthly average balance of Rs.50,000/- to Rs.5,00,000/-
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21. Of
a.
b.
c.
d.
all the variants of SME Power, the superior variant is

Power Pack
Power premium
Power core
Power base
22. Of
a.
b.
c.
d.
all the variants of SME Power, the inferior variant is

Power gain
Power premium
Power base
Power lite
23. As per recent RBI guidelines

a. No collateral should be accepted for all MSE sector manufacturing loans up to
Rs.10.00 lakhs.
b. No collateral should be accepted for all MSE sector service enterprise loans up
to Rs.5.00 lakhs
c. No collateral should be accepted for all MSE sector manufacturing & servoice
sector loans up to Rs.5.00 lakhs
d. No collateral should be accepted for all MSE sector manufacturing and service
sector loans up to Rs.10.00 lakhs
24. SMECFL (SME collateral free loans) are available for limits
a. From Rs.5.00 lakhs to Rs.1.00 Crores.
b. From Rs.10.00 lakhs to Rs.1.00 Crores.
c. Up to Rs.10.00 lakhs.
d. None of the above.
25. Primary security in the context of CGTMSE mean
a. Assets created out of the credit facility
b. Land & building of factory/office/ godown etc which pertains to the unit and
associated with the project and is unencumbered.
c. Personal guarantee of the proprietor.
d. All the above.
26. Advances to manufacturing units which are classified as medium enterprises
under MSMED Act,2006 fall under the category of
a. Priority sector advances.
b. Non-priority sector C&I advances
c. Priority sector C&I advances
d. Indirect priority sector advances.
27. All manufacturing units defined in MSMED Act,2006 when engaged in exports are
classified as priority sector advances.
a. No, only Micro and small manufacturing units fall under the category of
priority sector.
b. No, only Micro manufacturing units fall under the category of priority sector
c. No, only small manufacturing units fall under the category of priority sector
d. Yes, all units fall under the category of priority sector.
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ANSWERS
1.
c 2.
a 3.
c 4.
b 5.
c 6.
a 7.
a 8.
a 9.
a 10. c
11. b 12. c 13. a 14. b 15. c 16. d 17. a 18. c 19. a 20. a
21. a 22. c 23. d 24. d 25. d 26. b 27. a
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SBLC, MASULIPATNAM
OBJECTIVE TYPE QUESTIONS (Based on e-Circulars)

(Prepared by P.Rajendra Prasad, AGM)
1. The name of the nominee can now be mentioned on SB pass book/account
statement/TDR/STDR receipt True or false
a) True, in case the customer is agreeable for the same
b) True, as per RBI guide lines in this regard
c) False, the name of the nominee can not be mentioned as it should be
confidential
d) True, as per the discretion of the Branch Manger
2. It has been decided that testing for fugitive ink be made compulsory for payment
of cheques for amounts
a) Rs.10,000/- and above
b) Rs.20,000/- and above
c) Rs50,000/- and above
d) Rs.5,000/- and above
3. SBI FX TRADE is a new product introduced by the Bank relates to
a) Foreign Exchange
b) Currency futures
c) Trade Finance
d) SME business
4. Banks are mandated by RBI not to accept collateral security in the case of loans
up to Rs. ___ Lakh extended to units in the MSE sector (both Manufacturing and
Service enterprises) as defined under MSMED Act, 2006
a) 10
b) 5
c) 15
d) 20
5. No of times a locker holder can visit the branch to operate locker free of cost in a
year is restricted to _________
a) 10
b)15
c) no restrictions
d)12
6. The Metal Gold loan extended to a jeweler engaged in domestic Jewellery

industry would be permitted to be repaid within the maximum period of _____
days as stipulated by RBI.
a) 90
b) 120
c) 180
d) 240
7. Savings Bank Account as well as Current Account should be
Inoperative when
a) there are no debit as well as credit transactions induced at the
customers in the account for over a period of one year
b) there are no debit as well as credit transactions induced at the
customers in the account for over a period of two years
c) there are no debit as well as credit transactions induced at the
customers in the account for over a period of one and half years
d) there are no debit as well as credit transactions induced at the
customers in the account for over a period of six months
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instance of
instance of
instance of
instance of
THE WINGS
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8. Post-dated cheques should be obtained for Agricultural Term Loans and

Government Sponsored Schemes loan sanctioned beyond Rs._____ lacs under
Agricultural Term Loans.
a) 1
b) 2
c) 3
d) 4
9. As a measure to protect the gullible customers from the miscreants, who are
cheating them through various social engineering tactics adopted on the ATMs,
Bank has reduced the PIN entry time to ______
a) 20 seconds
b) 30 seconds
c) 15 seconds
d) 10 seconds
10. As per recent promotions in CBS, whenever a teller does not log into the system
for _____ days period defined at the institutional level, the system would
inactivate the teller and will throw an error 7757: Teller Inactivated.
a) 10 days
b)15 days
c ) 7 days
11. With effect from 01.04.2010 if any person whose income is subjected to TDS
under the provisions of Income Tax Act, fails to furnish his Permanent Account
Number (PAN) to the deductor, tax shall be deducted at the rate of
a) 10% or at the rate in force whichever is higher
b) 15% or at the rate in force whichever is higher
c) 20% or at the rate in force whichever is higher
d) 20%
12. Under PPF scheme1968, an account in the name of the minor can be opened by
the
a) Father only
b) Mother only
c) Either mother or father
d) Both jointly
13. The minimum amount of loan under SME Collateral Free loan scheme is
a) 1 lac
b) 2 lacs
c) 5 lacs
d) No minimum stipulation
14. Concession in interest for girl students availing SBI student loan and SBI Scholar
loan w.e.f. 02.03.09 is
a) 1 %
b) 0.75 %
c) No concession
d) 0.50 %
15. Which of the following is not true in respect of SBI Realty loans for above Rs.50
lacs
a) Independent valuation of the property by two empanelled valuers and lower
of the two valuations will be considered for loan assessment.
b) To obtain two title search reports from different lawyers one before loan
sanction, and one before disbursement
c) One CIBIL Credit Information Report on the borrower is sufficient which is
obtained as part of loan sanction process
d) Neither a) nor b) true
16. The maximum no of debit entries permitted in a half year in SB account, free of
charge, beyond which service charges would be applicable
a) 30
b) 40
c) 35
d) No limit
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17. Which of the following debit entries will be counted for the purpose arriving at
the maximum no of entries in a half year in a SB account
a) Withdrawal through State Bank ATMs
b) Withdrawals through ATMs other than State Bank ATMs
c) Debit entries on account of service charges
d) Transactions through internet banking
18. When a customer reports that his ATM card is lost, the branch has to
a) Immediately change the ATM flag from 1 to 2
b) Contact the Contact centre for hot listing the card and obtain ticket no
c) Take up with ATM switch centre for necessary action
19. All the undelivered cards, which are not delivered to the respective customers
within ______ days are to be hot listed and the relative pins are to be destroyed
after recording them in a register.
a) 30
b) 15
c) 60
d) 45
20. How the undelivered ATM cards and pin mailers are preserved in the branch?
a) All the undelivered ATM cards and Pin mailers will be kept in a box and the
box is kept in strong room
b) All the undelivered ATM cards and Pin mailers will be kept in a box and the
box is kept in the custody of the Branch Manager
c) The Undelivered cards and Undelivered Pin mailers are kept separately in
boxes and kept with different custodians
21. Which of the following should be reported as fraud?
a) cash shortage of more than Rs.10,000/b) cases of cash shortage of more than Rs.5,000/-, if detected by the
Management/Auditor/Inspecting Officer and not reported on the date of
occurrence by the person(s) handling cash
c) both a & b
d) neither a nor b
22. Detailed report in respect of fraud detected on FMR I as prescribed by RBI should
be submitted to Corporate Centre within _____ days
a) 15
b) 3 weeks
c)7
d) 4 weeks
23. In all fraud cases of Rs._____ and above, the Bank is required to submit
Suspicious transaction report ( STR ) along with FMR-1 to Financial intelligence
Unit- India
a) 25 lacs
b) 30 lacs
c) 40 lacs
d) 50 lacs
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24. If IOI security form fails to get printed or the printing is defective or the form
gets corrupted/torn while printing, the security form shall be treated as damaged
and destroyed, as it cannot be put to use. Who can mark such IOI as damaged
in CBS
a) Vault teller only
b) VPIS custodian only
c) Branch Manager
d) either a or b
25. Up to which amount the Sanctioning Authority can exercise discretion in respect
of credit card disputes, while sanctioning a car loan :
a) Rs.5000/b) Rs. 4000/c) Rs.3000/d) Rs.10000/26. Up to which amount the Sanctioning Authority can exercise discretion in respect
of credit card disputes, while sanctioning a car loan to existing housing loan
borrower :
a) Rs.5000/b) Rs. 4000/c) Rs.3000/d)
Rs.10000/27. The revised Home Loan Counsellor remuneration structure is
a) 0.25% of the loan amount, maximum Rs.25000/- per proposal
b) Rs.25000/- per proposal
c) Rs.10000/- per proposal
d) 0.15% of the loan amount , max Rs.10000/- per proposal
28. It has been decided by the appropriate authority to offer all categories of account
holders in Corporate Salary Package (CSP) and Defence Salary Package (DSP)
account holders, a discount of ------- on card rate of gold coins of all
denominations, 2, 4, 5, 8, 10, 20 and 50 gms
a) 0.25%
b) 0.50%
c) 0.75%
d) 1%
29. The incentive payable to Auto Loan counsellors is ___ % of Car Loan proposal
sourced and sanctioned
a) 0.2 %
b) 0.3 %
c) 0.5 %
d) 1 %
30. SBI Home loan PAL(Pre approved limit) facility is available
a) At all branches of SBI
b) At metro branches only
c) At RACPC only
d) At selected Brs. as approved by Controllers only
31. Minimum size of the housing loan under SBI Home loan PAL is
a) Rs.25 lacs
b) Rs.10 lacs
c) Rs.35 lacs
d) Rs.20 lacs
32. Pre Approved loan arrangement letter (PLAL) under SBI Home Loan PAL facility
is valid for----- months
a) 2
b) 3
c) 1
d) 6
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33. Which of the following statement is not true in respect of blank IOI forms
a) Blank IOI forms lost during the transit from Printer to Circle Stationary
Department then Central Stationary Department will make necessary input in
CBS up on receipt of information from circle stationary department.
b) Blank IOI forms lost during the transit from Circle Stationary Department
to Branch: The Circle stationary Department will inform the details of lost
blank IOI forms to Central Stationary Department which will make necessary
input in CBS.
c) Loss of blank IOI forms at Branch: The branch will inform Central Stationary
Department who will make the necessary input in CBS
d) Draft/IOI lost register is dispensed with
34. Enhancement of ceiling of Gratuity for retiring Bank employees from Rs.3.50 lac
to Rs.10.00 lac made effective from
a) 24th May 2010
b) 1st April 2010
st
c) 1 January 2010
d) none of these
35. Producer Companies can be formed by, subject to they being engaged in
activities connected with or related to Primary produce
a) Any 10 or more primary producers
b) By two or more producer
institutions
c) By contribution by both
d) either by a or b or c
36. Relaxation of security/margin norms for agricultural advances up to Rs.1 lac is
available to
a) Small farmers
b)Tenant farmers
c) Share croppers and oral lessees
d) all of them
ANSWERS
1.
a 2.
b 3.
b 4.
a 5.
d 6.
7.
b 8.
b 9.
a 10. b
11. c 12. c 13. d 14. d 15. c
16. a 17. b 18. b 19. d 20. c
21. c 22. b 23. b 24. d 25. c
26. a 27. a 28. d 29. a 30. c
31. b 32. a 33. c
34. a 35. a 36. d
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SBLC, MASULIPATNAM
REVERSE MORTGAGE SCHEME

[Prepared by Shri E.Manohar Raj, Manager (Trg.)]
1.
Reverse Mortgage Loan Scheme is launched specifically for the benefit of

a) Doctors
b) Senior Citizens
c) Agriculturist
d) None
2.
Under Reverse Mortgage Loan Scheme the loan amount can be disbursed as
lump sum amount to ___ % of the limit
a) 25
b) 35
c) 40
d) 50
3.
In the case of the death of the borrower under Reverse Mortgage Loan Scheme
the outstanding will be liquidated by
a) Selling of the House
b) Legal heirs can settle the loan
c) (a) or (b)
d) Declared as Banks property
4.
The minimum age of the borrower under Reverse Mortgage Loan Scheme is
a) 60 Years
b) Above 60 Years
c) 58 Years
d) 55 Years
5.
The residual life of the property to be obtained as security under Reverse

Mortgage Loan Scheme in the case of single borrower is ______ Years
a) 60 Years
b) 58 Years
c) 20 Years
d) 25 Years
6.
The residual life of the property to be obtained as security under Reverse

Mortgage Loan Scheme in the case of spouse being below 60 Years of age
______ Years
a) 60 Years
b) 58 Years
c) 20 Years
d) 25 Years
7.
The tenor of the loan under Reverse Mortgage Loan Scheme when the age of
the younger of the borrowers is between 58 and upto 68 years of age is _____
Years or till be death of the borrower (s), whichever is earlier.
a) 15 Years
b) 10 Years
c) 20 Years
d) 25 Years
8.
The tenor of the loan under Reverse Mortgage Loan Scheme when the age of
the younger of the borrowers is above 68 years of age is _____ Years or till be
death of the borrower (s), whichever is earlier.
a) 15 Years
b) 10 Years
c) 20 Years
d) 25 Years
9.
Quantum of loan under Reverse Mortgage Loan Scheme would be ____ % of

the value of the property
a) 65
b) 75
c) 85
d) 90
10.
Quantum of loan under Reverse Mortgage Loan Scheme is inclusive of

a) Interest for one year
b) Processing charges
c) Interest till maturity of the loan
d) None of these
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SBLC, MASULIPATNAM
11.
Maximum quantum of loan under Reverse Mortgage Loan Scheme

a) Rs.10.00 lacs
b) Rs.25.00 lacs
c) Rs.100.00 lacs
d) No ceiling
12.
Pre-payment penalty of the loan during the tenure of the loan under Reverse
Mortgage Loan Scheme is
a) 0.75 %
b) 1.00 %
c) 1.50 % of pre paid amount
d) No prepayment penalty
13.
Processing fee under Reverse Mortgage Loan Scheme is

a) 1.00 % of loan amount
b) 0.50 % of the loan amount
c) No processing charges
d) None of these
14.
Reverse Mortgage Loan Scheme is sanctioned as

a) Term Loan
b) Overdraft without repayment
schedule
c) Non-renewable Overdraft
d) Overdraft with repayment schedule
15.
Reverse Mortgage Loan Scheme can be sanctioned by the following branches

a) Only Metro branches
b) All branches
c) PBBs
d) PBBs and branches with P Divisions
16.
Maintenance of the properties charged for availing Reverse Mortgage Loan

Scheme lies with
a) Bank
b) Borrower
c) Sharing by Bank & Customer 50d) Sharing by Bank & Customer 25-75
50
17.
Ownership of the property mortgaged for availing Reverse Mortgage Loan

Scheme is with
a) Borrower
b) Bank
c) (a) and (b)
d) None of these
18.
In case of the death of the borrower under Reverse Mortgage Loan Scheme the
legal heirs will be allowed to repay the loan within a period of
a) 3 Months
b) 9 Months
c) 6 Months
d) None
19.
Reverse Mortgage Loan is sanctioned only if the surviving spouses are ___.
a) 2
b) 1
c) Not related
d) None of these
20.
Under Reverse Mortgage Loan Scheme the title holder has to make a will
superseding earlier will if any in favour of _______
a) Bank
b) Spouse
c) No need of any will
d) None of these
ANSWERS
1.
b 2.
d 3.
c 4.
b 5.
c 6.
d 7.
a 8.
b 9.
d 10. c
11. c 12. d 13. b 14. c 15. b 16. b 17. a 18. c 19 b 20

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THE WINGS
SBLC, MASULIPATNAM
OBJECTIVE TYPE QUESTIONS (ADVANCES)

(Prepared by N.V.R.S.Subba Rao, Faculty)
1.
Classification of assets under IRAC norms is done?

a) Account wise
b) Borrower wise
c) Activity wise
d) None of these
2.
Kannan committee was set up on

a) W.C Finance
c) SSI
b) derivatives
d) Rural credit
3.
The difference between a TL and DPG is

a) End use of Funds
b) Repayment
c) Outlay of funds
d) No difference
4.
What does Gross rate of return denote?

a) Percentage of net result to
b) Profit from advances
average working funds
c) Average rate of interest on
d) Gross profit of the branch
advances
5.
Goswami Committee was set up on

a) Credit to SSI Sector
c) Bank Frauds
b) Industrial Sickness
d) Infrastructure project
6.
Slack season credit policy of the RBI refers to which period

a) October to March
b) April to September
c) January to June
7.
In case of hypothecation advance by a bank

a) Ownership remains with the bank b) Ownership as well as possession is
but possession is with the
transferred to the bank
borrower
c) Ownership as well as possession
d) Possession is with the bank but
is with borrower
ownership is with the borrower
8.
When bills from a party are sent for collection without being
purchased/discounted the banker acts as :
a) Holder for value
b) Agent for collection
c) Principal
d) B & c
9.
Protection under IBA scheme is not available for lorry receipts marked
a) Door Delivery
b) Home Delivery
c) Bank Account
d) All of these
10.
A balance sheet is a statement of :

a) Assets and liabilities acquired/
incurred during a financial year
c) Profitability of concern for 1 year
b) Assets and liabilities as on a

particular date
d) Profitability of concern for one year
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11.
SBLC, MASULIPATNAM
Net worth means and includes:

a) Capital employed by the party
c) Capital and free reserves
b) Capital and all kinds of reserves

d) Total value of fixed assets less
depreciation
12.
Current liabilities and term liabilities of a concern are referred to as:

a) Capital employed
b) Total liabilities
c) Total outside liabilities
d) Net worth
13.
Choose the asset which is not current asset:

a) Stock in process
b) Sundry debtors
c) Prepaid Income tax
d) None of these
14.
Which of the following does not form part of net worth?

a) General reserve
b) Development rebate reserve
c) Provision for in come tax
d) Surplus in profit and loss account
15.
Purchase of furniture for cash by a firm will result in :

a) Increase in fixed assets and
b) Increase in current assets and
decrease in current assets
decrease in term liability
c) Decrease in net worth and
d) Increase in term liability and
increase in fixed assets
decrease in current assets
16.
Purchase of raw material on credit will result in :

a) Decrease in current assets
b) Increase in profit
c) Increase in term liabilities
d) Increase in current liabilities
17.
Sales minus cost of sales is referred to as :

a) Net profit
b) Operating profit
c) Gross profit
d) Profit after tax
18.
Use of funds results in:

a) Increase in liabilities
c) Increase in assets
b) Decrease in assets
d) None of these
19.
Increase in current liabilities followed by increase in fixed assets indicates:

a) Diversion of funds
b) A healthy trend
c) A conservative management
d) Increase in profits
20.
Net working capital refers to :

a) Total investment in current assets
21.
c) Excess of current assets over

current liabilities
b) Total capital employed in the

business
d) Excess of capital plus free reserves
over term liabilities
Liquidity ratio include

a) Current Ratio
c) WC turnover ratio
b) Quick ratio
d) All of these
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SBLC, MASULIPATNAM
22.
A very high Current Ratio of say 4 : 1 is

a) Highly desirable as it shows
b) Not desirable as it means less
capacity of the borrower to repay
efficient use of funds
current dues without difficulty
c) Desirable as it means that the
d) Desirable as it ensures safety of
borrower is relying more on
bank funds in the long run
capital and reserves than on
outside borrowings
23.
Working capital turnover ratio is obtained by dividing:

a) Net sales by net working capital
b) Total sales by sundry debtors
c) Gross working capital by sales
d) Not working capital by sales
24.
Debt equity ratio falls under the category of :

a) Solvency Ratios
b) Liquidity Ratios
c) Profitability Ratios
d) Proprietary Ratios
25.
When Debt Equity ratio for a company is low, it is said to be trading on :

a) Thick equity
b) Thin equity
c) High gross profit
d) Low profit margins
26.
A decreasing Debt Equity Ratio means:

a) Higher stake of owners in
b) Lower stake of owners in the
business
business
c) Decrease in profitability of the
d) Sharp increase in profitability of
business
the concern
27.
Proprietary Ratio is the relationship between:

a) Total assets in tangible net worth b) Capital shareholders funds to total
tangible assets
c) Net fixed assets to long-term
d) A & b
debts
28.
Proprietary Ratio is an indicator of :

a) Profitability of the concern
c) Margin of owner for term loans
29.
30.
b) Percentage of tangible assets

financed by owners/shareholders
d) All the above
Fixed Assets turnover ratio is obtained by:

a) Dividing fixed assets by current
b)
assets
c) Dividing fixed assets by term
d)
borrowings
Dividing annual sales by fixed

assets
Dividing annual sales by net value
of plant and machinery
Debt service coverage ratio (DSCR) is more useful to :

a) Bankers extending W.C finance
b) Term lending institutions
c) Preference share holders
d) All of these
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THE WINGS
SBLC, MASULIPATNAM
31.
The shorter the operating cycle of an industrial concern:

a) The lesser the working capital
b) The more the working capital
requirements of the concern
requirements of the concern
c) The more dangerous it is for the
d) None of these
banker
32.
Which of the following is not a fixed cost of a manufacturing unit?

a) Raw material consumed
b) Rent paid for factory shed
c) Salary of the office staff
d) None of these
33.
Choose which of the following items is a variable cost:

a) Salary of manager
b) Consumption of power and fuel
c) Wages paid to production staff
d) Both b & c
based on production
34.
Net sales of a unit means sales minus:

a) returns
b) Excise duty
c) discounts
d) All of these
35.
Gross profit means net sales minus:

a) Cost of production
c) Cost of sales
b) Closing stock of finished goods

d) Interest & selling expenses
36.
Total long term liabilities do not include:

a) Paid up capital
b) Reserves & surplus
c) Other long term liabilities
d) Specific reserves
37.
Share of weaker sections in total priority sector advances should be

a) 10%
b) 25%
c) 1%
d) 20%
38.
As per RBI directives, RRBs have to achieve ______as priority sector advances
a) 32% of net bank credit
b) 40% of incremental bank credit
c) 40% of net bank credit
d) 60% of net bank credit
39.
Which of the following advance(s) is/are covered under indirect advances to

agriculture?
a) Advance to a farmer for
b) Advance to a farmer for pu4chase
mushroom cultivation
of harvest combine
c) Advance to a farmer for
d) Advances to farmers through
production and processing of
primary agricultural cooperative
hybrid seeds of crops
societies
40.
Which of the following advances is/are not indirect advance(s) to agriculture:

a) Loans to farmers through PACS
b) Loans to individuals for
undertaking spraying operations
c) Loans to a bee keeping unit
d) Loans to a Custom Service unit
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SBLC, MASULIPATNAM
41.
Loans to cold storage units which are mainly used for hiring can be covered
under indirect advances to agriculture if :
a) The cold storage unit is located
b) The unit is used for storing mainly
anywhere in India
agricultural produce
c) The unit is not registered as SSI
d) All of these
42.
Inter corporate investment is an example of :

a) Current assets
b) Fictitious assets
c) Net worth
d) Miscellaneous assets
43.
Which of the following documents, in the event of their being unstamped or

under-stamped can not be admitted as evidence in the court of law even after
paying penalty:
a) Letter of credit
b) Letter of hypothecation/pledge
c) Promissory note/BOE
d) All of these
44.
In the context of bank lending, floating charge stands for :

a) Charge created on any goods that b) Charge created on sailing ships or
can float on water
vessels
c) A charge not on any particular
d) None of these
item but general items of the
borrower
45.
Assignment is defined in :
a) Indian contract Act 1872
c) Transfer of property Act 1882
b) RBNI Act 1934

d) Banking Regulation Act, 1949
Assignment is a charge created on

a) Fixed assets of borrowers
c) Stock of inventory of small units
b) Fixed deposits of banks

d) Actionable claims
46.
47.
Bank has allowed advance of Rs 60000/- against goods worth Rs 90000/-. The
goods should be insured for :
a) Rs 60,000/b) Rs 90,000/c) Rs 1.80.000/-being double the
d) Rs 1,20,000/- being double the
amount of goods.
amount of advance
48.
The bank while granting advance against security of shares should prefer:
a) Equity shares
b) Cumulative preference shares
c) Partly paid shares
d) Non-redeemable preference shares
49.
In case of cash credit accounts limit means

a) That party can draw up to certain b) That party can draw up to a fixed
ceiling even if drawing power
ceiling without reference to value
calculated is nil
of stock
c) That party; can draw up to a
d) None of these
prescribed maximum even if
drawing power works out to be
more than that
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50.
SBLC, MASULIPATNAM
Accommodation bills are the bills which are:

a) Not accompanied by documents
b) Drawn by borrowers without
of title to goods
transacting any business
c) Drawn for genuine trade
d) Drawn by borrower without any
transactions
genuine trade transactions and just
to accommodate the other party
ANSWERS
1.
b 2.
a 3.
c 4.
a 5.
b 6.
b 7.
c 8.
b 9.
d 10
11. c 12. c 13. d 14. c 15. a 16. d 17. c 18. c 19. a 20. c
21. d 22. b 23. a 24. a 25. a 26. a 27. b 28. b 29. b 30. b
31. a 32. a 33. d 34. d 35. c 36. d 37. b 38. d 39. d 40. c
41. d 42. c 43. c 44. c 45. c 46. d 47. b 48. a 49. c 50. b
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SBLC, MASULIPATNAM
SBI LOAN POLICY

(Prepared by Sri P.Rajendra Prasad AGM & Sri L.J.Meclarin, Chief Manager (Trg)
Please choose correct answer for the following questions from the given
alternatives.
1.
The Loan Policy of the Bank was last reviewed and approved by the Central
Board of the Bank on --------a) 31.03.2011
b) 28.01.2010
c) 31.03.2010
d) 01.04.2010
2.
Which of the following important aspects have been taken into consideration
while reviewing the loan policy of the Bank in 2010?
a Observations of RBI Inspectors
b) Changes necessitated by BPR
under Sec 35 of BR Act 1949
initiatives
c Implementation of Revised Credit d) All the above
Rating Model
3.
Which department at Corporate Centre plays a key role in preparation/review/

revision of the Banks Loan Policy?
a Credit Management Cell(MCG)
b) Credit Policy & Procedures
Department
b Accounts Department
d) Compliance Department
4.
The Loan policy is directed towards fulfilling _____ and aimed at accomplishing
_______
a New Vision & New Mission
b) New Vision & Value statement
statements
c New Mission & Value statement
d) New Vision, Mission & Value
statements
5.
Loan Policy would be reviewed once in ________

A year
b) 2 years
3 years
d) 5 years
6.
The Loan Policy is reviewed every year in alienation with Chairmans Policy
Guidelines. The rationales is _____
a To align with Banks Central
b) To align with RBI instructions
Board decision
c To align with decision of Credit
d) To align with decision of ALM
Management Committee of the
Committee of the Bank
Board
7.
It is incorporated in the Loan Policy that all loan products would be reviewed
once in a year. The rationale is____
a To align with RBI instructions
b) To align with decision of Credit
Management Committee of the
Board
c To align with Board approved
d) To align with decisions of ALM
Policy
Committee of the Bank
173 | P a g e
THE WINGS
SBLC, MASULIPATNAM
8.
As per Loan Policy the Banks aggregate exposure to the Capital Markets shall
not exceed _______of its net-worth as defined by RBI as on March 31 of the
previous year
a 15%
b) 25%
c 30%
d) 40%
9.
As per Loan Policy, _________ at quarterly intervals or more frequently as

directed by the RBI/Audit Committee of the Board will undertake review of
exposure ceiling of 40% to Capital Markets.
a Global Market Department
b) Credit Policy & Procedures Dept
c Compliance Department
d) ALM Committee
10.
As per Loan Policy, Advances to companies in which members of the Banks

board are directors will be subject to relevant provisions in ________
a Banking Regulation Act 1949
b) SBI Act 1955
c RBI Act 1934
d) Both a & b
11.
Which department at Corporate Centre is responsible for submitting quarterly

report to RBI on advances to companies in which members of the Banks Board
are directors?
a CPPD
b) Global Markets
c Financial Reporting, Compliance
d) Accounts Dept
and Taxation Dept
12.
Aggregate exposure to connected companies of the Bank i.e. Associates and

Subsidiaries would be restricted to _____ % of capital funds ( Tier-I & Tier-II)
( However, as per RBI guidelines, prudential exposure limits are not applicable
to Inter-Bank exposures, hence we may exclude exposure on our Associate
Banks and Banking Subsidiaries)
a 15%
b) 25%
c 40%
d) 50%
13.
Which department at Corporate Centre is responsible for putting up half-yearly

review report to the Banks ECCB on exposures to connected companies of the
Bank?
a Global Markets
b) Financial Reporting, Compliance
and Taxation Dept
c Accounts Dept
d) CPPD
14.
What is the exposure ceiling for a single borrower as per Banks Loan Policy?
a 10% of Capital funds (Tier-I&II)
b) 15% of Capital funds (Tier-I&II)
c 25% of Capital funds (Tier-I&II)
d) 40% of Capital funds (Tier-I&II)
15.
What is the exposure ceiling for a group borrower as per Banks Loan Policy?
c 40% of Capital funds( Tier-I&II)
d) 50% of Capital funds(Tier-I&II)
16.
What is the exposure ceiling for a single borrower in respect of infrastructure

projects as per Banks Loan Policy?
174 | P a g e
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SBLC, MASULIPATNAM
17.
What is the exposure ceiling for group borrower in respect of infrastructure

projects as per Banks Loan Policy?
18.
What is the exposure ceiling prescribed by RBI in respect of Oil Companies who
have been issued oil bonds?
19.
Upto what level the bank may consider enhancement of exposure ceiling, in
exceptional circumstances, subject to Board approval?
a 5% of capital funds
b) 10% of capital funds
c 15% of capital funds
d) 18% of capital funds
20.
As per revised instructions of RBI, the Banks exposure shall include

a Credit (Fund & Non-Fund)
b) Investments
c Off-balance sheet exposures,
d) All the above
other derivative products
21.
Which of the following shall be considered for arriving at the credit exposure?
a Limit sanctioned
b) Outstandings
c Limit or outstanding whichever is d) Limit or outstanding whichever is
higher
lower
22.
Excepting Off-balance sheet items, Non Fund based exposures shall include
what percentage of limit/outstanding?
a 25%
b) 50%
c 75%
d) 100%
23.
In respect of Off-balance sheet items the exposure shall be considered on what

basis?
a Credit conversion factors as
b) Capital Funds (Tier-I)
advised by RBI from time to time
c Capital Funds (Tier-II)
d) Capital Funds (Tier-I & II)
24.
In respect of fully disbursed Term Loans, which of the following is considered

for arriving at exposure?
a Limit sanctioned
b) Outstandings
c Limit or outstanding whichever is d) Limit or outstanding whichever is
higher
lower
25.
Which of the following is true in respect of credit facilities granted to weak/sick

industrial units under rehabilitation packages?
a The ceiling on single/group
b) The ceiling on single/group
borrower exposure limits is
borrower exposure limits is not
applicable to existing/additional
applicable to existing/additional
credit facilities
credit facilities
c The exposure ceiling is applicable d) The exposure ceiling is applicable
only in respect of group borrower
only in respect of single borrower
175 | P a g e
THE WINGS
SBLC, MASULIPATNAM
26.
Which of the following is true in respect of loans and advances sanctioned

against Banks own Term deposits?
a They are included in the purview
b) They are excluded from the
of exposure norms
purview of exposure norms
c Exposure norms excluded only in d) Exposure norms applicable on
respect of single borrower
case-to-case basis as per RBI
guidelines.
27.
Which of the following statements is correct

credits are allocated directly by RBI?
a They are exempt from exposure
b)
ceiling to the extent of such
allocation
c Exempted up to 50% of such
d)
allocation
28.
What is the maximum amount of exposure

borrowers?
a Aggregate Credit facilities (Fund
b)
Based & Non-Fund based) Rs.5
crore (other than against
specified securities)
c Aggregate Credit facilities (Fund
d)
crore (other than against
specified securities)
in respect Borrowers to whom food

They are not exempt from
exposure ceiling
Exempted up to 75% of such
allocation
level prescribed for individuals as

Aggregate Credit facilities (Fund
crore (other than against specified
securities)
Aggregate Credit facilities (Fund
crore (other than against specified
securities)
29.
What is the maximum amount of exposure level (other than against specified
securities which is exempted) prescribed for Non-corporate ( Partnerships,
Trusts, HUFs, Associations) as borrowers?
b) Aggregate Credit facilities (Fund
crore which includes off-balance
sheet derivative exposure
c Aggregate Credit facilities (Fund
d) Aggregate Credit facilities (Fund
30.
What is the maximum exposure level prescribed for Corporate borrower?

b) Aggregate Credit facilities (Fund
c Maximum aggregate credit
d) Aggregate Credit facilities (Fund
facilities as per prudential norms
of RBI on exposures
176 | P a g e
THE WINGS
SBLC, MASULIPATNAM
31.
Term loans (with residual maturity of over 3 years) at any point of time should
not in aggregate exceed _____% of the total domestic advances of the Bank
a 35%
b) 40%
c 50%
d) 60%
32.
The Bank shall at any point of time restrict its funded exposure by way Term
Loans to infrastructure projects to ______ % of the Banks total domestic
advances
a) 10%
b) 15%
c) 20%
d) 25%
33.
The bank shall endeavour to restrict fund based exposure to a particular

industry to a maximum of ______% of banks total domestic fund based
exposure
a) 10%
b) 15%
c) 20%
d) 25%
34.
The Banks exposure to real estate including residential mortgages, commercial

real estate etc. will not exceed _______ % of total domestic advances
a 10%
b 15%
c 20%
d 25%
35.
The exposure to sensitive commodities listed by RBI will be restricted to

_____% of the Banks net-worth as at the end of the previous year
a 5%
b 10%
c 15%
d 20%
36.
Loans to individuals against equity-linked securities shall not exceed Rs._____

lakhs if securities are held in physical form.
a Rs.5 lakhs
b Rs.10 lakhs
c Rs.15 lakhs
d RS.20 lakhs
37.
Loans to individuals against equity-linked securities shall not exceed Rs._____

lakhs if securities are held in demat form.
a Rs.5 lakhs
b Rs.10 lakhs
c Rs.15 lakhs
d RS.20 lakhs
38.
What is the ceiling on unsecured exposure

a 25% of Banks outstanding total
b
exposure
c 35% of Banks outstanding total
d
exposure
39.
What is the level of exposure towards Single Borrower deemed to be

substantial exposure for triggering internal monitoring mechanism?
a In excess of 7.5% of Banks
b In excess of 8.5% of Banks Capital
Capital funds (Tier-I& Tier-II)
funds (Tier-I& Tier-II)
c In excess of 9.5% of Banks
d In excess of 10.5% of Banks
177 | P a g e
as adopted by our Bank?

30% of Banks outstanding total
exposure
40% of Banks outstanding total
exposure
THE WINGS
SBLC, MASULIPATNAM
40.
What is the level of exposure towards Group Borrower deemed to be

substantial exposure for triggering internal monitoring mechanism?
a In excess of 7.5% of Banks
b In excess of 10% of Banks Capital
c In excess of 15% of Banks
d In excess of 18% of Banks Capital
41.
Aggregate substantial exposures to single borrowers should not exceed

_________% of Banks total Capital funds (Tier-I & Tier-II)
a 150%
b 200%
c 250%
d 300%
42.
Aggregate substantial exposures to groups of borrowers and to single

borrowers not included in exposures to groups of borrowers should not exceed
_________% of Banks total Capital funds (Tier-I & Tier-II)
a 200%
b 300
c
500%
600%
43.
Which of the following is not true in respect

a Substantial exposure norms are
b
in-house norms set within the
prudential norms
c Substantial exposure norms are
d
nothing but prudential norms,
which restrict further exposures
by the bank.
44.
As per Banks Loan Policy, which of the following methods is adopted for
assessment of Working Capital?
a Projected Balance Sheet Method
b Cash Budget Method
c Turnover Method
d Any of the above as applicable
45.
Projected Balance Sheet Method is applicable for borrowers who are engaged in
manufacturing, services and trading activities and who require fund based
working capital finance of above Rs._______ crore
a Rs.2.00 crore
b Rs.3.00 crore
c Rs.5.00 crore
d Rs.10 crore
46.
Cash Budget method is used for assessing working capital finance for ______
a Seasonal Industries like Tea,
b Construction activity
sugar etc.
c Trading activity
d Both a & b above
47.
Turn Over Method is applicable for sanction of working capital finance up to ---a Rs.2.00 crore
b Rs.3.00 crore
c Rs.5.00 crore
d Rs.10 crore
48.
Up to what amount for loans under SSI segment, collateral security need not be
obtained?
a Rs.5 lakhs
b Rs.10 lakhs
c Rs.20 lakhs
d Rs.25 lakhs
178 | P a g e
of Substantial Exposure?
Substantial exposure norms are
intended to help in credit
concentration
Substantial exposure norms should
not be deemed as cap on further
exposures and come in the way of
booking bankable business
THE WINGS
SBLC, MASULIPATNAM
49.
Up to what amount for loans under SSI segment, the sanctioning authority
may(subject to complying certain conditions) consider waiver of collateral
security?
a Rs.10 lakhs
b Rs.15 lakhs
c Rs.20 lakhs
d Rs.25 lakhs
50.
Under SBF segment, waiver of collateral security is permitted for loans up to

Rs._________
a Rs.25000
b Rs.50000
c Rs.75000
d Rs.100000
51
What is the minimum Liquidity/Current ratio in respect of credit appraisal of a

Manufacturing Unit?
a 1
b 1.20
c 1.33
2.00
52
What is the minimum Current ratio in respect of units other than in

Manufacturing sector for working capital limits up to Rs.5.00 crore?
a 1.00
b 1.20
c 1.33
d 2.00
53
What is the minimum Liquidity/Current ratio in respect of units other than in

Manufacturing sector for working capital limits above Rs.5.00 crore?
a 1.00
b 1.20
c 1.33
d 2.00
54
What is the minimum net Debt Service Coverage Ratio( DSCR) prescribed for a
unit under Manufacturing sector/ other sector?
a 2:1
b 2:1.20
c 2:1.33
d 2:2
55
What is the minimum gross Debt Service Coverage Ratio( DSCR) prescribed for
a unit under Manufacturing sector/ other sector?
a 1.75:1
b 1.75:1.20
c 1.75:1.33
d 2:2
56
At whole bank level, the non-fund exposure will not exceed ----------- the level
of fund based exposure.
a equivalent to
b twice
C thrice
d None of these
57
Which of the following statement is not true in respect of Banks loan policy
guidelines for Bank Guarantees.
a Bank will limit itself for issue of
b Guarantees are issued/renewed
financial guarantees
valid for a period not exceeding 18
months at any one instance.
C Bank may consider issue of BG
d Bank will execute guarantees
with maturity of beyond 10 years
covering inter-company
against 100% cash margin and
deposits/loans
with prior approval of competent
authority.
179 | P a g e
THE WINGS
SBLC, MASULIPATNAM
58
The extent of finance by Bank for a NBFC of SB1 to SB5 rated company shall
not exceed ------times the NOF of the company
a Three
b two
C Four
d None of these
59
The maximum period of finance under Gold metal Loan scheme for domestic
jewellery manufacturers is-------a 90 days
b 120 days
C 180 days
d 365 days
60
Who can sanction loans and advances aggregating Rs.25 lacs and above to
directors (including Chairman/Managing Director) of other Banks
a Chairman of our Bank
b MD &CCFO
C ECCB
d No loans will be given to directors
of other Banks
61
Unconditional Cancellability clause is to be accepted by borrower, otherwise it

will affect the Bank for
a NPA provisioning
b Capital Adequacy framework
guidelines
C Profitability
d None of these
62
The unified Credit Risk Assessment (CRA) system for borrower as well as credit
facility in respect of C&I, SSI, SBF and AG segment will be applicable for
exposure of Rs.-------and above.
a 30 lacs
b 15 lacs
C 50 lacs
d 25 lacs
63
Barrowal accounts of ------- rating & below will be rated at half yearly intervals
a SB8
b SB9
C SB10
d SB 6
64
The hurdle rate for enhancement in credit facilities/ new connections is

a SB10
b SB9
C SB8
d No hurdle rate
65
The authority structure for review of irregular term loans for outstandings
above Rs.1 crore and upto Rs.5 crore is
a CCC I
b Controlling Authority
c WBCC II
d NWCC
66
The minimum amount of Agricultural cash credit (ACC) loan eligible for take
over from other Banks/Agricultural credit societies etc
a Rs.1 lac
b Rs.50000/C RS.25000/d Rs.10000/-
67
The minimum amount eligible for Takeover of ATLs from other banks/
Agricultural credit societies etc for allied activities and other than allied activities
respectively is Rs-----& Rs.----a 10 lacs & 5 lacs
b 10 lacs and 3 lacs
C 10 lacs & 2 lacs
d 15 lacs & 5 lacs
180 | P a g e
THE WINGS
SBLC, MASULIPATNAM
68
The maturity of any Term Loan, including moratorium, should not normally
exceed ----- years except under cases of CDR mechanism/rehabilitation
packages approved by the bank, infrastructure loans, housing loans, education
loans and ATL under approved schemes.
a 10
b 8
C 7
d 12
69
The Base rate will be reviewed by -----a ALCO

b
C Chairman
d
70
CPPD
ECCB
The deviation, for the norm fund based exposure to a particular industry not to
exceed 15% of total fund based exposure, can be approved by
a Nobody
b ECCB
C Chairman
d CCRO &MD
ANSWERS
1. a
2. d
3. b
4. a
5. a
6. b
7. c
8. d
9. a
10. d
11. c
12 c
13. b
14. b
15. c
16. b
17. d
18. b
19. a
20. d
21. c
22 d
23. a
24. b
25. b
26. b
27. a
28. d
29. d
30. c
31. a
32 b
33. b
34. c
35. a
36. b
37. d
38. c
39. a
40. c
41. d
42 d
43. c
44. d
45. c
46. d
47. c
48. a
49. b
50. a
51. c
52 a
53. b
54. a
55. a
56. b
57. d
58. a
59. c
60. c
61. b
62 d
63. c
64. a
65. d
66. a
67. c
68. b
69. a
70. b
181 | P a g e
THE WINGS
SBLC, MASULIPATNAM
SAVINGS BANK A/C-Prepared by Shri E.B.Manohar Raj (Manager (Trg)

1.
Emphasis is more on opening Savings Banks account for inculcating ___ habit
among the customers and _____ deposits for the bank.
a) Saving; term
b) Saving ; float
c) Banking; stable
d) Saving ; stable
2.
Basically, the savings bank account are of two types, they are
a) Cheque book facility and nonb) Single
cheque book facility
c) Joint
d) None
3.
If an withdrawal form or a pay-in slip is presented by the blind depositor, a

supervising official will ensure ______ on the face of the instrument from the
customer
a) Amount
b) Signature
c) Amount and Signature
d) None
4.
The minimum amount of interest to be paid on an Savings Bank account is

a) Rs.10/b) Rs.50/c) Re.1/d) Rs.5/-
5.
An Savings Bank account is treated as inoperative account if there are no

transactions in the account for more than ______
a) 3 months
b) One year
c) 6 months
d) Two years
6.
First debit in the Inoperative Savings Bank Account in Core Banking System
must be sent to the ______ for passing the transaction.
a) Single window operator
b) Only through referral/second level
of authorisation
c) Branch Manager
d) None of these
7.
Amount of charges for activation of inoperative account is

a) Rs.50/b) Rs.100/c) No charges
d) None of these
8.
As per RBI guidelines an annual review must be conducted to the in SB

inoperative accounts where the balance is more than Rs.___
a) Rs.1,000/b) Rs.5,000/c) Rs.10,000/d) Rs.25,000/-
9.
If the account is a joint account in case of

nominated the right of the nominee arises
a) Death of all the account holders
b)
c) Death of the first holder
d)
10.
A Small Account is a savings bank account where

a) Balance in the account does not
b) Aggregate of all the credits in a
exceed Rs.50,000/year does not exceed Rs.1.00 lac
c) The aggregate of all withdrawals
d) All of these
and transfers in a month does not
exceed rupees ten thousand
182 | P a g e
E or S and nominee is also

only after
Any one of the account holder
None of these
THE WINGS
SBLC, MASULIPATNAM
11.
A student can open a savings account if he attains _____ years of age and who
can sign _______ and the balance in the account should not be more than
Rs.________
a) 10 Years; in English; Rs.1.00 lac
b) 12 Years; in English; Rs.2.00 lacs
c) 10 Years; Uniform signature;
d) 12 Years; Uniform signature;
Rs.2.00 lacs
Rs.2.00 lac
12.
For issue of duplicate statement of account with latest balance Rs.100/- and
Rs.100/- for each ledger folio. Ledger folio means ____ no of entries
a) 40 entries
b) 50 entries
c) 75 entries
d) 100 entries
13.
Any person can open a Savings Bank account who can furnish proof of identity
and proof of residence Under Savings Bank Rule
a) Rule 4
b) Rule 3
c) Rule 2
d) Rule 1
14.
Maximum balance under normal Savings Bank Account is

a) Rs.10,00,000/b) Rs.15,00,000/c) Rs.50,00,000/d) No ceiling
15.
As per the new rules the amount of penalty for non-maintenance of minimum
Quarterly Average Balance in Savings Bank accounts in P Segment is
a) Rs.100/- per quarter
b) Rs.50/- per quarter
c) No charges
d) None of these
16.
Which of the following is taken for calculation of interest on Savings Bank A/cs?
a) Daily closing balance
b) Daily average balance
c) Minimum balance between 10th & d) Minimum Balance in a month
last day of the month
17.
Charges will be levied for ATM withdrawals if the withdrawals per month
exceeds ______ transactions in other Bank ATMs.
a) 5
b) 10
c) 4
d) 8
18.
The Bank may give immediate credit in respect of outstation cheques drawn in
favour
of the account holders for amounts up to Rs. ________ /-,
a) Rs.15,000/b) Rs.25,000/c) Rs.30,000/d) Rs.50,000/-
19.
Under INB the service charges for online railway ticket booking is Rs.__/a) Rs.50/b) Rs.10/c) Rs.20/d) Rs.5/-
20.
Transaction charges for ATM usage in State Bank Group ATMS for balance
enquiry for SBI customers is Rs.___/a) No Charges
b) Rs.5/c) Transaction counted for no of
d) None of these
transactions
183 | P a g e
THE WINGS
SBLC, MASULIPATNAM
21.
Maximum number of debit entries other than Alternate Channel in Savings Bank
account per half year is __
a) 25
b) 30
c) 45
d) 50
22.
Under KYC norms we need at least __ for proof of identity and proof of
address respectively
a) One document for each
b) Two documents each
c) One document is enough
d) None of these
23.
Signatures in capital or block letters _____ acceptable.

a) are
b) are not
c) Can be
d) None of these
24.
Nomination can be made in favour of ________ nominee

a) Only one
b) Two only
c) Many
d) No facility is available
25.
Charges for on line air ticket booking through merchant site is Rs.___
a) Rs.10/b) Rs.50/c) Rs.25/d) Rs.100/-
ANSWERS
1.
d 2.
a 3.
a 4.
5.
d 6.
b 7.
8.
b 9.
10. c 11. c 12. a 13. d 14. d 15. c 16. a 17. a 18. c

19. b 20. a 21. b 22. a 23. b 24. a 25. b
184 | P a g e
THE WINGS
SBLC, MASULIPATNAM
OBJECTIVE TYPE QUESTIONS ON GENERAL AWARENESS, BANKING &

FINANCE [Prepared by Shri G.V.Rao, Manager (Training)]
Please choose correct answer from the given alternatives
1. Benhhazi is a place popular in news recently. In which country is this town located?
a) Syria
c) England
b)
d)
Libya
Kenya
b)
d)
Coal mines
All the above
2. Libya is known for its

a) Metals and minerals
c) Oil reserves
3. Bhimsen Joshi who passed away recently is a famous

a) Hindustani vocalist
c) Hindi Writer
b)
d)
Politician
Economist
4. Which airliner borrowed substantially from SBI is facing liquidity problems?

a) Air India
c) Kingfisher Airlines
b)
d)
Jet Airways
Indigo Airlines
b)
d)
Multiple Commodities Market

Multi Commodities Exchange of India
b)
d)
Election Commissioner
Advisor to Ministry of Finance.
5. MCX stands for

a) Money Commodities Exchange
c) Multi Commodities Xchange
6. Subir Gokarn is
a) SEBI chief
c) RBI Deputy Governor
7.
8.
9.
White Label ATM (WLA) is an ATM owned by

a) Banks
b)
c) Owned by non-bank and runs for
d)
banks on fee basis
PPP represents
a) A political party in Uttara Pradesh
b)
c)
d)
A new concept in financial inclusion.
NBFC
By many banks together for collective
use.
An investment concept for
infrastructure projects
None of the above
In recent times SENSEX generally became more sensitive to which of the following
factors?
a) FII flows
b) FDI flows
c) Money flow from Mutual Funds
d) Profits announced by companies.
10. Which five countries together are known as PIIGS?

a) 5 East Asian Countries
b) 5 Latin American countries
c) 5 Southern Eurozone nations
d) 5 Central Asian Nations
11. As per recent RBI guidelines which of the following is correct regarding White Label
ATM?
a) Five free transactions per month can
b) WLA is hired by one bank.
be conducted by customers
c) Usage charges are displayed for the
d) All the above
customers
12. After downgrading the rating of SBI, Moodys downgraded another Indian banks rating
as well. Which bank was that?
a) Andhra Bank
b) ICICI Bank
c) HDFC Bank
d) Syndicate Bank
185 | P a g e
THE WINGS
SBLC, MASULIPATNAM
13. Who is the chairman of Bank of Baroda?

a) Chanda Kochchar
c) Aditya Puri
b)
d)
M.D.Mallya
Prameeth Javeri
14. Which of the following rates provide direction to interest rates in the country?
a) Bank Rate
b) Prime Lending Rate
c) Repo and Reverse Repo Rates
d) Base Rate
15. If RBI cuts CRR, then
a) Excess Cash will be removed from the
economy
c) Foreign Inward Remittances will take
place on large scale.
b)
d)
Liquidity will be infused into the

economy
Either (a) or (b)
16. What are the main components for fixing base rate by a bank?
a) Cost of Deposits, Operating Costs and b) Cost of Deposits, CRR & SLR Costs
Profit Margin
and Profit Margin
c) Profit Margin , Operating Costs and
d) Cost of deposits, Profit Margin ,
CRR & SLR Costs
Operating Costs and CRR & SLR Costs
17. Which of the following rates play a key role in RBIs LAF (Liquidity Adjustment Facility)?
a) Repo and Reverse Repo Rates
b) Bank Rate
c) PLR
d) All the above
18. Recently RBI banned which of the following companies from accepting public deposits?
a) Sriram Finance
b) Tata Finance
c) Mannapuram Finance
d) All the above
19. Which of the following is true with respect to Bank rate?
a) A statutory rate in terms of Banking
b) A non-statutory rate used by RBI to
Regulation Act
provide direction to the interest rate
regime
c) A statutory rate in terms of RBI Act
d) Bank Rate moves in tune with Repo
and Reverse Repo Rates
20. The state with highest population density in India as per census 2011 is
a) NCT Delhi
b) Bihar
c) Tamilnadu
d) Kerala
21. Recently which of the following applied for a banking licence to RBI?
a) Tata Group
b) Future Group
c) India Post
d) Reliance Group
22. AMA (Advanced Measurement Approach) is used to calculate
a) Operational risk
b) Credit Risk
c) Market Risk
d) Sovereign risk
23. Capital Conservation Buffer was mentioned in
a) Basel-1
b)
c) Basel-III
d)
24. Malegaom Committee was set up by RBI for
a) Reviewing LAF
b)
c)
Review Bank rate concept
d)
186 | P a g e
Basel-II
RBI Mid term policy Review.
Looking into Micro Finance Institutions
regulation issue
To look into issues related to MSME
finance.
THE WINGS
SBLC, MASULIPATNAM
25. Government Business can be conducted by

a) Public Sector Banks only
c)
All public Sector and Private sector

banks
b)
d)
Public Sector Banks and a few private

sector Banks
None of the above
26. Under FRBM (Fiscal responsibility and Budget management) mechanism, the fiscal deficit
to be restricted to
a) 3% of GDP
b) 4.5% of GDP
c) 5% of GDP
d) No such restriction
27. Gross Domestic Savings of India as part of GDP hover in the range of
a) 10-15%
b) 15-18%
c) Around 20%
d) Around 30%
28. Which of the following are called EMV Cards?
a) Magnetic stripe cards
b)
c) Chip based cards
d)
Signature based cards

All the above
29. At present which bank is leading in setting up of POS machines?

a) ICICI Bank
b) Axis Bank
c) SBI
d) Bank of Baroda
30. A CRR cut is expected to
a) Increase liquidity in the market
c) Increase trends of inflation
b)
d)
Boost NIM of banks

All the above
31. Which country is the largest consumer of sugar in the world?

a) USA
b) China
c) India
d) Brazil
32. Which international rating agency kept SBIs rating intact?
a) Moodys
b) Standard & Poor
c) ICRA
d) Y &Y
33. Straining relations between which countries is a source of worry for the world economy as
a whole?
a) USA and China
b) USA and Syria
c) USA and Israel
d) USA and Iran
34. HDI (Human Development Index) is a measure of human development used by
a) World Bank
b) IMF (international Monetary fund)
c) G- 7 Nations
d) UNDP of UNO (United Nations
Organization)
35. A decrease in general price level of goods and services in an economy is called
a) Inflation
b) Hyperinflation
c) Deflation
d) Disinflation
36. Broad Money in Indian economy is denoted by
a) M1 money supply
b)
c) M3 money supply
d)
M2 money supply
None of the above
37. The effective literacy rate of India as per census 2011 is

a) 68.34%
b) 74.04%
c) 70.12%
d) 68.25%
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38. The population density of India as per census 2011 is

a) 282
b) 382
c) 252
d) 352
39. The agency to look after the regulation of foreign trade of India is
a) Ministry of commerce
b) EXIM House
c) EXIM Bank
d) DGFT
40. Special Focus Market Scheme (SFMS) & Market Linked Focus Product Scheme (MLFPS)
are part of
a) MODVAT Scheme
b) GST Scheme
c) Foreign Trade Policy for 2009-14
d) Direct Tax Code
41. Insurance for exports from and imports to India is provided by
a) Banks
b) ECGC
b) EXIM Bank
d) All the above
42
43
44
Which two organizations are popularly known as Brettenwoods Twins?

a) World Bank & United Nations
b) IMF and UNDP
Development Program (UNDP)
c) IMF and World Bank
d) IMF and International Reconstructions
Fund
SDR is a drawing facility available
a) From world Bank to member nations
b) From IMF to member nations
c) From Exim bank to big Corporate
d) Aid from UNDP
houses in India
IMF chairman is
a) Nicolas Sarkozy
c) Robert Zoellick
b)
d)
45. The much disgraced former chairman of IMF is

a) Alexi Kudrin
b)
c) Rolland Gullick
d)
46
The president of World Bank is

a) Nicolas Sarkozy
c) Robert Zoellick
b)
d)
Alexi Kudrin
Christine Lagarde
Dominique Strauss Khan
Nicolas Sarkozy
Alexi Kudrin
Christine Lagarde
47. There is a growing controversy about the deliberate undervaluation of a particular

currency to gain unfair advantage in trade by that nation. Which currency is that?
a) Yuan
b) Yen
c) Rial
d) Euro
48. Chief Executive of IBA (Indian Banks Association) is
a) K.Ramanathan
b) K.Ramakrishnan
c) Sandeep Deshpande
d) Sudip Gokarn
49. Gen X is a deposit product launched by
a) Oriental Bank of commerce
c) Andhra Bank
b)
d)
SBH
Bank of Baroda
50. There is a growing controversy between Tamilnadu and Kerala regarding which dam?
a) Periyar Dam
b) Udukki dam
c) Mullaperiyar dam
d) Idukki dam
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ANSWERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
b
c
a
c
d
c
c
b
a
c
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
c
d
b
c
b
d
a
c
c
a
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
c
a
c
b
c
a
d
c
a
d
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
c
b
d
d
c
c
b
b
d
c
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
b
c
b
d
b
c
a
b
b
c
NOTES :
10. PIIGS
Portugal, Italy, Ireland, Greece and Spain.
11. WLA Notes

- In a bid to accelerate the growth and wider spread of ATMs,
the Reserve Bank today issued draft guidelines for permitting non-banking entities to
set up, own and operate such money dispensing machines.
Non-bank entities proposing to set up such service will have to have a minimum net
worth of Rs.100 crore, RBI said.
Being non-bank owned ATMs, the guidelines on five free transactions in a month for
using other bank ATMs would not be applicable for transactions effected on the
WLAs. The charges for the transactions should be displayed on the screen before the
customer initiates the transaction
189 | P a g e
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GENERAL AWARENESS
(Prepared by Shri A.Srinivasa Rao, Manager (Systems))
Please choose correct answer from the given alternatives
1.
At present, the maximum limit for subscription to Public Provident Fund A/c in a
year is
a) Rs.1,00,000
b) Rs.70,000
c) Rs.40,000
d) No restriction
2.
Rate of interest payable per annum on PPF account from the current year is
a) 8.00%
b) 8.50%
c) 8.60%
d) 9.00%
3.
The recent addition of chip-based State Bank Viswa Yatra Foreign Travel Card
in association with VISA International is in the currency of :
a) Japanese Yen
b) Singapore Dollar
c) Pound Sterling
d) American Dollar
4.
Which of the following airline is in financial crisis for whom SBI has lent Rs.50
crore post-crisis.
a) Kingfisher
b) Jet Airways
c) Air India
d) Indigo
5.
SBI has recently started its operations in which of the following places?
a) Qatar
b) Jeddah (Saudi Arabia)
c) Both (a) & (b)
d) None of these
6.
SBI is planning to launch mediclaim and accidental insurance facilities to

its_________ holders.
a) Current Account
b) Savings Bank Account
c) All types of Time Deposit A/cs
d) All types of loan accounts
7.
RBI has classified Micro Finance Institutions (MFIs) as a new category of NonBanking Finance Companies (NBFCs) basing on the recommendations of :
a) Y H Malegam
b) T K A Nair
c) A Vaidyanadhan
d) G Srinivasan
8.
The Working Group of Technology Upgradation in RRBs is headed by :

a) Y H Malegam
b) T K A Nair
c) A Vaidyanadhan
d) G Srinivasan
9.
High level task force constituted by Government of India to study various issues
relating to Micro, Small and Medium Enterprises (MSMEs) is headed by :
a) Y H Malegam
b) T K A Nair
c) A Vaidyanadhan
d) G Srinivasan
10.
Task Force on Revival of Rural Co-operative Credit Institutions constituted by

GoI is headed by
a) Y H Malegam
b) T K A Nair
c) A Vaidyanadhan
d) G Srinivasan
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11.
Equity investment by a bank in a non-financial services company is restricted to

________ % of the companys capital or _____ % of the Banks capital and
reserves, whichever is less.
a) 10
b) 15
c) 20
d) 12.5
12.
Combined equity investments in non-financial entities by Banks, their

subsidiaries/associates/ JVs/ AMCs should not exceed_____ % of that
Companys capital.
a) 10
b) 15
c) 20
d) 25
13.
Banks are now free to determine their interest rates under NRE/NRO accounts
on :
a) Savings Bank A/cs & Term
b) Savings Bank Deposits under NRO
deposits of maturity of one year
and above under NRE
c) Both (a) & (b)
d) None of these
14.
As per RBIs recent decision, the daily transaction limit on Mobile Banking
Services is :
a) Rs.1,00,000
b) Rs.50,000
c) Rs.1,50,000
d) No limit
15.
The depreciation in Rupee seen from August to December, 2011 is ____ %

a) 17
b) 21
c) 19
d) 18
16.
Due to depreciating currencies and inflationary pressures on the rise, the

growth in EMEs has also been sluggish. EMEs are :
a) Euro-based Market Economies
b) Emerging Market Economies
c) Eco-friendly Market Entities
d) Economically Managed Entities
17.
Banks have to strictly adhere to the KYC norms and AML Standards. These
standards are prescribed by :
a) Ministry of Banking & Finance
b) SEBI
c) Reserve Bank of India
d) Finance Secretary, GoI
18.
The Finance Ministry targets PSU Banks to improve their Return on Assets to
____ % by 2015.
a) 2.25
b) 2.00
c) 1.75
d) 1.50
19.
What is the expected GDP growth forecast for 2011-2012 as revised by CRISIL
a) 7.6 %
b) 7 %
c) 8.2%
d) 8.6 %
20.
Atorvastatin is a lo-cost generic version of Lipitor to treat high cholesterol

recently launched in US market by :
a) Ranbaxy
b) Dr. Reddys
c) Smithcline Beechem
d) Alembic Chemicals
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21.
Luxury car maker Rolls-Royce is planning to open new dealership in

__________ city (It already has at Delhi and Mumbai)
a) Kolkata
b) Bangalore
c) Hyderabad
d) Chennai
22.
Indias food grain productivity in 2010-11 is _______ kg per hectare.

a) 1912
b) 1756
c) 1921
d) 1765
23.
The Mullaperiyar Dam is in the news recently due to dispute between _______
and _______ states.
a) Tamilnadu & Kerala
b) Tamilnadu & Karnataka
c) Kerala & Karnataka
d) Karnataka & Maharashtra
24.
PSU banks have to achieve ____ % of CASA deposits as portion of total

deposits by 2015 as expected by the Ministry of Finance.
a) 40
b) 20
c) 45
d) 25
25.
India is the _______ largest vehicle maker in the world as per International
Organisation of Motor Vehicle Manufacturers.
a) 5th
b) 7th
th
c) 6
d) 8th
26.
Indias first Emu Processing Plant (a large bird which cannot fly and farmed for
meat, oil, leather) is proposed to be set up in the state of :
a) Karnataka
b) Andhra Pradesh
c) Uttaranchal
d) Arunachal Pradesh
27.
Indias per capita income in 2010-11 is around :

a) Rs.18450
b) Rs.54000
c) Rs.27620
d) Rs.39360
28.
Indias forex reserves as at the end of December, 2011 in dollar terms are
around :
a) US$ 302 bn
b) US$ 228 bn
c) US$ 345 bn
d) US$ 312 bn
29.
Which of the following country has been elected Chairman of International

Sugar Organisation for 2012?
a) China
b) Chile
c) India
d) Cuba
30.
Which of the following are NOT correct in respect of changes made in PPF
scheme wef 1.12.2011?
a) Maximum limit for subscription in b) Payment of commission on PPF is
a year is Rs.1.00 lakh
1%
c) Interest chargeable on loan
d) Interest on Balances at credit in
against PPF balances @ 2%
PPF account is @ 8.6% p.a.
p.a.instead of 1% p.a.
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31.
Who of the following are the gainers on account of fall in rupee value?
a) Exporters such as IT, Textiles,
b) NRIs who sent money home
Gems & Jewellery
c) Foreign Travellers
d) Importers of capital/electronic
goods
32.
The Rivered Earth, An Equal Music, The Golden Gate, Two Lives are the
books written by
a) Vikram Seth
b) Chetan Bhagat
c) Salman Rushdie
d) Paulo Coelho
33.
The name of the Social Networking Product being tested recently by Alibaba
Group is
a) Quechup
b) Laiwang
c) Google+
d) Goodwizz
34.
Which of the following is an initiative under Financial Inclusion?

a) Mobile Banking facility
b) Internet Banking facility
c) No Frills Account
d) CASA Deposits
35.
Which of the following foreign banks has the largest network in India?
a) Citi Bank
b) Standard Chartered Bank
c) ABN Amro Bank
d) American Express Bank
36.
The investment limit in Plant and Machinery in respect of Micro Enterprises

(Manufacturing) is
a) Rs. 25 lacs
b) Rs.20 lacs
c) Rs.50 lacs
d) No limit fixed
37.
What is the limit of membership in respect of Self Help Groups?

a) 10
b) 15
c) 20
d) 25
38.
The major contribution to Indias GDP is from _________________ sector.

a) Agricultural
b) Services
c) FMCG
d) Banking
39.
Kirit Parikh Committee relates to _______________

a) Fixing of support prices to agrl
b) Financing of SHGs
products
c) Deregulation of petroleum prices
d) Capital Adequacy norms for NBFCs
40.
Which of the following countries has highest forex reserves?

a) China
b) India
c) USA
d) UK
41.
What is the period of validity of cheques/drafts/pay orders/Bankers Cheques

with effect from 1/4/2012 as stipulated by RBI?
a) 6 months
b) 3 months
c) 45 days
d) 2 months
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42.
RBI has stipulated banks not to issue uncrossed Drafts/Pay Orders over
Rs.___________ to avoid misuse of this facility in lieu of cash by anti-social
elements.
a) Rs.100000
b) Rs.50000
c) Rs.10000
d) Rs.20000
43.
Who among the following has been identified as successor to Ratan Tata to
lead Tata Group?
a) Noel Tata
b) Cyrus Mistry
c) N R Narayana Murthy
d) Indra Nooyi
44.
Bank on wheels is ______________

a) A financial inclusion program
adopted by banks to provide
banking facilities to unbanked
rural areas by travelling on
vehicles
c) Name given to vehicles used to
replenish cash in ATMs
b) SBIs new program where

transanctions are made available
to customers through mobile vans
d) RBIs cash remittance facility

through which it provides cash to
banks through secured vehicles
45.
Recently, one of the following companies has withdrawn its Rs.457 cr. Deposits
with SBI, preferring private sector banks due to better interest rates.
a) Tata Steel
b) Infosys
c) Maruti Udyog
d) Bharat Electronics Ltd
46.
RBI has asked all banks to issue cheques that conform to CTS 2010 standard
(Cheque Truncation System) to ensure uniformity of cheques by ________
a) 1st October,2012
b) 1st July, 2012
c) 1st April, 2012
d) 31st December, 2012
47.
RBI has recently cut CRR by 50 basis points w.e.f. 28th January, 2012 from
6.00% to 5.50%. This step is likely to infuse Rs. ________ Liquidity into the
system.
a) Rs.37,500 Cr
b) Rs.15,000 Cr
c) Rs.25,000 Cr
d) Rs.32,000 Cr
48.
GDP growth projected has been revised downwards by RBI in its third quarter
review monetary policy or 2011-2012 from 7.6% to ______
a) 6.9%
b) 7.0%
c) 7.1%
d) 7.2%
49.
Which of the following websites has marked its protest against Stop Online
piracy Act bill proposed by US Congress, by shutting its site for one day?
a) Google
b) Facebook
c) Wikileaks
d) Wikipedia
50.
State Bank of India has achieved 100 per cent coverage of its allotted
unbanked villages in ____________ under the Financial Inclusion
Programme (FIP) of the Reserve Bank.
a) Andhra Pradesh
b) West Bengal
c) Orissa
d) Madhya Pradesh
194 | P a g e
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ANSWERS
1.
11.
21.
31.
41.
2.
12.
22.
32.
42.
3.
13.
23.
33.
43.
4.
14.
24.
34.
44.
5.
15.
25.
35.
45.
6.
16.
26.
36.
46.
7.
17.
27.
37.
47.
8.
18.
28.
38.
48.
9.
19.
29.
39.
49.
10.
20.
30.
40.
50.
Notes :
14. RBI has recently decided to remove the cap on restriction on daily transaction
limit of Mobile Banking Services. However, Banks may fix their caps on
transaction limits basing on their own assessment of risks involved.
195 | P a g e
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GENERAL AWARENESS (Compiled by Shri N.V.R.S.Subba Rao)

1
a
c
The rank of India as per World Bank on business-friendly reforms

125th
b 130th
127th
d 132nd
2
a
c
Who amongst the following is the Regulator of Insurance sector in India?

RBI
b AMFI
IRDA
d SEBI
The main feature of the National Agricultural Insurance Scheme is to insure

which of the following
Life of the farmer
b Crop of the farmer
Animals which are used in d Land of the farmer
agricultural activities
a
c
4
a
c
5
a
c
6
a
c
7
a
c
Which one of the following states has passed a bill to regulate the interest rates
on micro-finance?
Orissa
b Haryana
Karnataka
d Andhra Pradesh
Which of the following rates are reviewed by the RBI at the time of periodical
review of the policy?
Bank Rate
b Repo Rate
Savings Bank rate
d All of these
According to the planning commission, in how many years shall the per capita
income in India become double?
Nine
b Five
Seven
d Three
Expand the term IFRS
Indian
Financial
Reporting b
Standards
International Financial Reporting d
Standards
Indian Financial Reporting systems

International Financial Reporting system
8
a
c
IT industry records______ percent growth in revenue in 2010-11

15%
b 19%
23%
d 25%
9
a
Who is Hardeep Puri?

Indias permanent representative b
at UN
Vice President, World Bank
d
Vice President, IMF

Indias ambassador in USA
10 As per recent newspaper reports, which one of the following countries was
second largest importer of goods and services in the world during year 2009-10?
a China
b USA
c
Japan
d India
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11 Through which one of the following methods, RBI has allowed Indian companies
to hedge exchange rate risks associated with trade transactions?
a Forwards
b FRA
c
Swaps
d Cross Currency options
12 In computer the number of bits used to represent a character is
a 4
b 8
c
16
d None of these
13 Which one of the following directions has been given by Govt to civic bodies?
a They must use 70% of the funds b They must use 70% of the funds for the
for BPL families
poor living within their jurisdiction
c
They must use 25% of the funds d They musts use 25% of the funds for the
for BOPL families
poor living within their jurisdiction
14 Who are considered Super Senior Citizen as per budget 2011-12? Those who
have completed a minimum age of
a 65 years
b 70 years
c
75 years
d 80 years
15 India signed the fourth Tax Information Exchange Agreement (TIEA) in February
2011 with a country considered a tax haven. This TIEA is with
a Bermuda
b Behamas
c
Virgin Islands
d Isle of Man
16 The World Trade Organisation was earlier known as
a UNICEAF
b GATT
c
UNCTAD
d FAO
17 All of the following are permanent members of the Security Council except
a China
b France
c
Germany
d USA
18 Which state became the first in India to sign an agreement with the World Bank
for securing carbon credits for its Clean Development Mechanism project in
2011?
a Uttarakhand
b Karnataka
c
kerala
d Himachal Pradesh
19 As per reports published by the WHO in May 2011, the global average life
expectancy at birth stood in 2009 at
a 60 years
b 62 years
c
64 years
d 68 years
20 According to the State of the Worlds children 2011 report released by UNICEF,
the percentage of adolescents living in the developing nations is
a 72
b 75
c
85
d 88
21 Which of the following countries is a Scandinavian country
a Swedon
b Greece
c
Italy
d Spain
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22 Who among the following has made Indias largest public offering of Rs 15200
crores?
a BHEL
b NTPC
c
Coal India
d Indian Oil Corporation
23 In which one of the following places was Asias first Export Processing Zone
(EPZ) set up?
a Santa Cruz
b Kandla
c
Cochin
d Surat
24 Which unit of valuation is known as Paper Gold?
a Dollar
b SDR
c
Euro
d Pound
25 Which of the following is a direct tax?
a Sales tax
b Income tax
c
Excise duty
d Customs duty
26 The concept of carbon credit is associated with
a Lending to mineral exploring b Development of coal mines
companies
c
Protection of environment
d Development of uranium
27 What is Stagflation?
a Inflation with growth
c
Inflation after deflation
b
d
Deflation with growth

Inflation with depression
28 Which of the following controls the working of share market in India?

a MRTP Act
b FERA
c
BIFR
d SEBI
29 The headquarter of IMF is at
a New York
c
London
b
d
Washington DC
Manila
30 The Finance Commission is appointed every _______years

a 3
b 4
c
5
d 6
31 The Apex Bank of US is called
a Federal Reserve
c
Bank of America
b
d
Federal Bank of US
American Bank
32 The book Truth, Love and A Little Malice is written by

a Tarun Tejpal
b Vikram Seth
c
Kushwant Singh
d Nirad C Chaudhuri
33 The Railway Budget is generally presented in the Parliament in the month of
a February
b April
c
May
d December
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34 A list of national languages can be traced in the ________of the Indian

constitution
a 5th schedule
b 6th schedule
c
7th schedule
d 8th schedule
35 The threat of global warming is increasing due to rising concentration of
a Nitrous oxide
b Ozone
c
Sulphur Dioxide
d Carbon Dioxide
36 Which country is known as the sugar bowl of the world?
a Cuba
b India
c
Brazil
d Bangladesh
37 Name of the private bank which has entered into a bancassurance partnership
with Agriculture Insurance Company of India(AIC) for distribution of Agricultue
insurance products
a ICICI Bank
b HDFC Bank
c
YES Bank
d Axis Bank
38 National Income of a country is also known as
a Gross National Product (GNP)
b Gross Domestic Product (GDP)
c
Net National Product (NNP)
d Net Domestic Product (NDP)
39 The retail giant Wal-Mart belongs to
a USA
b
c
UK
d
Australia
France
40 The Headquarters of International Labour Organisation (ILO) are at

a The Hague
b Geneva
c
New York
d Paris
41 A Multinational is
a A company operating in many b
countries
c
A person who has visited many d
countries
An international body to help developing

countries
A company established with foreign
assistance
42 The Reserve Bank was nationalized in the year

a 1948
b 1949
c
1950
d 1969
43 Which of the following committees has been set up to study the issues and
concerns of the microfinance institutions?
a Lakshmi Chand committee
b Y.H.Malegam Committee
c
Tendulkar committee
d Prof U.R.Rao committee
44 Who is the watchdog of international trade?
a World Bank
b WTO
c
IMF
d ILO
45 Insider trading is related to
a Share Market
c
Taxation
b
d
Horse Racing
Public Expenditure
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46 SEZ stands for

a Small Economic zone
c
Social Enforcement zone
b
d
Social Economic Zone

Special Economic zone
47 In which state was the Nalanda University located in India?

a Bengal
b Bihar
c
Orissa
d Utter Pradesh
48 One Family One Bank is the tagline of which Indian Bank?
a ICICI Bank
b HDFC Bank
c
Bank of Maharashtra
d Indian Bank
49 World Local Bank is the punchline of which bank?
a HSBC Bank
b HDFC Bank
c
ICICI Bank
d YES Bank
50 In the context of Mutual Funds, SIP stands for
a Systematic Investment Plan
b
Systematic Individual Plan
c
Systematic Increment Plan
d
Systematic Income Plan
ANSWERS
1.
11.
21.
31.
41.
2.
12.
22.
32.
42.
3.
13.
23.
33.
43.
4.
14.
24.
34.
44.
5.
15.
25.
35.
45.
6.
16.
26.
36.
46.
7.
17.
27.
37.
47.
8.
18.
28.
38.
48.
9.
19.
29.
39.
49.
10.
20.
30.
40.
50.
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OBJECTIVE TYPE QUESTIONS ON I.S. SECURITY

[Collected by Shri G.Venkateswara Rao, Manager (Training)]
1
Regarding the Undelivered ATM Cards at branches, which of the following

action is inappropriate
(A) Should be kept by the same custodian who is already having ATMPINS to be issued to the customer
(B) There should be separate custodians for the custody of ATM cards and
PINs.
(C) Enter in the ATM Cards Issued Register
(D) The Cards/PINs lying undelivered for a period of 45 days are to be
Hot-list
Regarding our SBI ATMs, which of the following statement is not correct
(A) Digital Video Surveillance System (Video Cameras) are mandatory for
all ATMs
(B) The journal and all the reports generated are to be retained date-wise
for a period of 8 years as per the Bankers Book of Evidence Act of
1891
(C) There should be separate custodians for the custody of ATM cards and
PINs.
(D) Undelivered ATM Card/PIN should be kept under proper custody for a
minimum period of 5 years
Encryption means
(A) Crying in the enclosed area/room
(B) Make readable data as an unreadable one
(C) Make unreadable data as a readable one
(D) None of the above
Regarding phishing, which of the following is not correct

(A) It is a type of computer virus
(B) It is an example of social engineering Technique
(C) It is typically carried out by e-mail spoofing
(D) It is a way of attempt to acquire vital information as a trustworthy
entity in an electronic communication
When you are away from your desktop temporarily ...

(A) Switch off the monitor
(B) power off the PC
(C) Enable the screen saver with password protection
(D) Inform the nearby colleague to take care of
What are the important thing you have to do to secure your PC

(A) Turn on Windows Firewall
(B) Install Anti-Virus Software
(C) Change your System Password frequently
(D) All of the above
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What is the process of encoding information in a way so that only someone

with a key can decode it ?
(A) Compression
(B) Decompression
(C) Decryption
(D) Encryption
In computer security terms, what is hash

(A) It is a substance, which is produced from ash
(B) An encrypted value
(C) A decryption key
Secured Socket Layer is

(A) A form of Electrical Wiring System
(B) A form of public key encryption to protect sensitive information
(C) A form of private key encryption to protect sensitive information
(D) A Anti-Virus Software
10
As per our Banks IS Security Policy, which of the following is treated as

Security Violation
(A) Connections modems to computers without approval
(B) Introducing Virus
(C) Bypassing Access Control Mechanisms
11
Secured Socket Layer is

(A) Used on Web-Page Communication to protect sensitive information
(B) Used in Computer Hard-disk as a method for Data Storage
(C) A Physical Component used to protect our PCs
(D) a Computer Programming Language
12
Which one of the following is treated as inappropriate use of our SBI e-mail
system
(A) Emails containing messages that may damage the Banksreputation
(B) Emails that contain virus, worms or malware
(C) Receiving your reset-password
(D) Both a & b
13
Which of these services was originally designed for network administrators

to work remotely on different computers in their network but is now mostly
used by malicious hackers?
(A) SMTP
(B) Telnet
(C) POP3
(D) ICMP
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14
What method(s) can be used to protect sensitive data from prying eyes?
(A) Passwords
(B) File permissions
(C) Encryption
15
This technology is used to measure and analyze human body characteristics

for authentication purposes.?
(A) Footprinting
(B) Biometrics
(C) JBOD
(D) Anthropomorphism
16
This
(A)
(B)
(C)
(D)
17
Name the mechanism for ensuring that only authorized users can copy or
use specific software applications
(A) Authorized program analysis report
(B) Private key
(C) Service level agreement
(D) Dongle
18
Which Technology facilitates to use public networks securely and privately

to exchange data
(A) Security Identifier (SID)
(B) Public key infrastructure (PKI)
(C) Private Branch Exchange (PBX)
(D) Trusted Computing Platform Alliance (TCPA)
19
Which one of the following statements about software copyright is TRUE

(A) Copyright promotes the illegal use of software
(B) Copyright is the exclusive legal right of software authors to produce
copies of their own software
(C) Copyright is designed to protect a disk against computer viruses
(D) Copyright will prevent a CD-ROM from being duplicated
20
Which of the following operating systems is virtually most secure

(A) Windows XP Home Edition
(B) Windows 95
(C) Linux
(D) Windows 98
is an electronic or paper log used to track computer activity

Traceroute
Cookie
Web Log
Audit Trail
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21
What is "phishing" ?
(A) "Spoofed" e-mails and fraudulent websites designed to fool recipients
into divulging personal financial data such as credit card numbers,
account usernames and passwords
(B) A type of computer virus
(C) An example of a strong password
22
What term means conducting a security audit without informing any of the
other network users or staff?
(A) DEFCON
(B) Remote
(C) Blind
(D) Black box
23
Are you free to do whatever you want with your network-connected

computer?
(A) Yes, Its my personal computer and I can do what I please
(B) No. I have to be a responsible member of the networked community
and am bound by the George Mason Responsible Use of Computing
Policy.
(C) No. I have to be a responsible member of the networked community,
which includes being aware of the Wireless Network Policy.
(D) Both b and c.
24
If you ever receive an unsolicited telephone call from someone claiming to

need your password, what would you do?
(A) Refuse and report immediately
(B) Write the password on a piece of paper, put it in an envelope and
send it by mail
(C) Tell him/her the password and change it the following day
(D) Send him/her the password via email
25
Which is the best way to protect the sensitive data in your computer when
you go out for lunch?
(A) Turn the monitor off
(B) Activate the screen saver
(C) Lock your computer with password
(D) Close all programs
26
Of the following choices, which indicates when it is safe to open a file

attached to an e-mail?
(A) When you know the sender, the attachment is expected, and it is not
unusual in any way.
(B) When the e-mail is only sent to you
(C) When the attachment is not an .exe or .com
(D) When you know the sender
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27
Which of the following is the best definition of risk analysis when discussing
IT security?
(A) Risk analysis looks at the probability that a hacker may break in to
your system.
(B) Risk analysis looks at the probability that your security measures won't
stop a hacker breaking in to your system.
(C) Risk analysis determines what resources you need to protect and
quantifies the costs of not protecting them.
(D) Risk analysis looks at the probability that a vulnerability exists in your
system.
28
What happens if you digitally sign and inject a footer on an e-mail message
in the wrong order?
(A) Nothing
(B) The message won't be sent
(C) The footer will invalidate the signature
(D) The footer will be illegible
29
The document that states in writing how a company plans to protect its
company's physical and IT assets.
(A) Data Encryption Standard
(B) securitypolicy
(C) access control list
(D) copyright
30
This is a program or file that is specifically developed for the purpose of

doing harm.
(A) bastion host
(B) malware
(C) ping sweep
(D) passphrase
31
In computer security, this describes a non-technical kind of intrusion that

relies heavily on human interaction. It often involves tricking people to
break their own security procedures.
(A) cyberterrorism
(B) hijacking
(C) nonrepudiation
(D) social engineering
32
What is a spam cocktail?

(A) An ISP that allows the distribution of spam.
(B) A piece of spam sent to multiple recipients within the same
organization.
(C) A deluge of spam mixed with legitimate e-mail in a user's inbox.
(D) A combination of techniques used to identify spam
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33
In what order should you digitally sign and inject a footer into an e-mail
message?
(A) First inject the footer, then digitally sign.
(B) First digitally sign, then inject the footer.
(C) It doesn't matter.
(D) You can't do both, period.
34
Which of the following is NOT recommended for securing Web applications

against authenticated users?
(A) Client-side data validation
(B) Filtering data with a default deny regular expression
(C) Running the application under least privileges necessary
(D) Using parameterized queries to access a database
35
Which of the following is characteristic of spyware?

(A) Blocking access to antivirus and antispyware updates
(B) Aggregating surfing habits across multiple users for advertising
(C) Customizing search results based on an advertiser's needs
36
We continually hear that applying patches and proper patch management is

the answer to a majority of our security woes. Why is this illogical?
(A) Patching always opens other vulnerabilities.
(B) Patching continually causes interoperability issues.
(C) Patching only deals with known software flaws.
(D) Patching can address misconfiguration issues as needed
37
Out
(A)
(B)
(C)
(D)
38
What is the most important factor to consider for the success of an

organizations contingency and recoverability plan
(A) The plan has identified all of the critical applications required to be
covered for the business to survive
(B) The plan is stored off-site
(C) The process is supported by senior management and funded
adequately
(D) Back ups are made and moved off-site regularly
of which one is not a measure to attain Physical Security in SBI ATM

VSS
DSS
Access Lock
PIN Verification
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39
Which of the following is not a password control?

(A) Requiring that a password have a minimum length and complexity
(B) Encrypting passwords when in transit and at rest
(C) Limiting the reuse of passwords through the use of a history file
(D) Limiting the number of unique sessions an account can initiate
40
Strong passwords would have a minimum length of ____ characters

(A) 2
(B) 4
(C) 6
(D) 8
41
How
(A)
(B)
(C)
(D)
can we ensure the security of Backup media?

To secure against unauthorized access
To secure against environmental and physical threats
Multiple copies of Backup to be maintained to deal with media failure
All the above
42
The
(A)
(B)
(C)
(D)
current limit of attached files in Corporate mail is

1MB
2MB
3MB
5MB
43
Who is supposed to be responsible for application security in all activities

related to design, development, deployment and support of an application
(A) Development team
(B) Information Security Department
(C) Steering Committee
(D) Application owner
44
Application should ensure that all transactions with financial implication

should have
(A) One person as the requestor and approver
(B) Separate requestor and approver
(C) Approval of Systems and Procedure Dept
(D) Approval of Information Security Department
45
Application should have the provision for allocating access rights based on
the principle of
(A) First come first serve
(B) Maker-checker
(C) Default
(D) Least privilege
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46
An application need not display which information, on completion of a

successful logon
(A) User-Id
(B) Date and time of the previous successful logon
(C) Details of any unsuccessful login attempts
(D) Name of the application
47
Who
(A)
(B)
(C)
(D)
48
Internet connection is enabled on desktop, which is not connected to the

LAN in Branch. How should the data be transferred between the desktop
and LAN
(A) By connecting the desktop to the LAN
(B) By using a modem for dial-up connection to the LAN
(C) By using removable media like Floppy/CD
49
Who
(A)
(B)
(C)
(D)
is authorized to block ports through firewall

IT-Networking dept. as advised by ISD
ISD
Service Provider
System Administrator
50
How
(A)
(B)
(C)
(D)
can you prevent intruders from accessing your wireless network?

Encrypt network traffic with WPA or WEP
Restrict access to trusted MAC addresses
Both A & B
Cant Prevent
51
Overt hacking is
(A) Hacking with full knowledge of IT resources and with the permission
of senior management
(B) Hacking with partial knowledge of IT resources and with the
permission of senior management
(C) Hacking with full knowledge of staff and with the permission of senior
management
(D) Hacking with minimum knowledge of IT resources and in full
knowledge of staff and senior management
is responsible for selection of encryption technology for Data security

Head of department
Head of IT department
Information Security Department (ISD)
Application owner in consultation with ISD
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52
What is Triangulations
(A) It is a type of credit card fraud where fraudster lure the card holder in
his web site by offering exceptionally high discounts on goods for
purchasing
(B) It is a three dimensional computer program for hacking credit card
number
(C) It is a postal interception of credit card
(D) It is copying the information of magnetic strip of genuine card on a
fake card
53
What is Denial of service(Dos) attack

(A) It is online restriction by the service providers to prevent legitimate
users of a service from using that service
(B) It is explicit attempt by hackers to prevent legitimate users of a
service from using that service
(C) It is the ethical hacking practice used by the service provider
(D) Both A&C
54
In cyber law who are White hat hackers

(A) those who attempt to break into systems or networks in order to help
the owners of the system
(B) Those who attempt to break systems for fun only without any
malicious intention
(C) Those who sometimes break into the system in order to help and
sometime they break it illegally
(D) Those who break security of a computer system without permission
from an authorized party with malicious intention
55
What are the coders, kids and drops in internet community

(A) These are the codes use for malicious program, transport medium
and end target in hacking
(B) They are malicious programmer, user or traders of the program and
the people who convert virtual money into real cash respectively
(C) These are different stages of programming depending upon
programmer skill
(D) These are useless jargon for internet world
56
What is Black Box Testing

(A) A method of verifying that software functions perform correctly
without examining the internal program logic
(B) Verifying the codes for correctness by auditor
(C) Both A & B
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57
What is VPR in biometric recognition?

(A) vein pattern recognition
(B) Versatile palm recognition
(C) Virtual palm reading
(D) none of these
58
What is the most common delivery method for viruses?

(A) Email
(B) Instant Message
(C) Internet download
(D) Portable media
59
Which of the following is a proper use of email

(A) Send out pricelists for your home-based business products
(B) Never email personal information
(C) Forward inspirational and humorous emails to your co-workers to
brighten their day
(D) Send an email to all your friends and co-workers to advertise a job
opening in your area
60
A malicious user can rely on email or webpage to launch a ____?

(A) Phishing attacks
(B) Virus attacks
(C) Spyware
61
Which statement most accurately describes virus?

(A) A program that is secretly installed onto your computer and makes
copies of itself which consumes your computer resources
(B) A program that protects your computer from hackers
(C) A program that is installed onto your computer that monitors your
internet use
62
Which of the following is a measure for preventing a social engineering

attack except:
(A) Do not give out computer or network information
(B) Do not complete confidential company tasks in an unsecure setting
(C) Do not secure sensitive documents and media
(D) Do not give out personal identifiable information
63
Which statement is allowed according to the limited personal use policy?

(A) Conducting business for personal gain
(B) Using company resources for political purpose
(C) Sending an occasional personal email
(D) Downloading music and video files
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64
If you're not careful about your Internet browsing, which of the following
can result?
(A) Spyware or Adware installation
(B) Browser Hijacking
(C) Information or identity theft
65
The
(A)
(B)
(C)
(D)
66
All of these are good physical security practices except?

(A) Always wear your security badge when leaving work, even if just for a
break. They should be worn outside of the office in public so other
people know where you work
(B) Control access to your office by ensuring the door closes completely
behind when entering and exiting. Ensure that no one slips in behind
you
(C) When working in a public setting, prevent shoulder surfing by
shielding your paperwork and keyboard from view using your body
(D) Follow the Clear Desk and Screen Policy. Store confidential and
sensitive items in a secure place
67
What is the biggest vulnerability to computer information security?

(A) Instant Messaging, Peer-to-Peer (P2P) applications
(B) Malware - virus, worms, spyware
(C) Spam, Phishing attacks
(D) End Users
68
Which statement is not true about information security?.

(A) Computer security is part of Management's job
(B) Verify everything! Verify who the person is on the phone. Verify that
the website is real. Verify that the visitor belongs where you find
them.
(C) Report anything suspicious to your System Administrator
(D) Do not ignore unusual computer functioning. It might be a sign of
malware
69
Each bank is required to identify ________________ internal and external

threats that could result in unauthorized disclosure, misuse, alteration, or
destruction of customer information or customer information systems.
(A) reasonably foreseeable
(B) currently known and existing
(C) all
(D) both a & b
first step in Security Awareness is being able to _____ a security threat

avoid
recognize
challenge
log
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70
What is the most common type of computer based attack?

(A) Denial of Service
(B) Identity Spoofing
(C) Social Engineering
(D) Malware
71
What is a bot-net?
(A) A special program that catches viruses and holds them in a secure
place (like an electronic fishing net).
(B) A group of computers infected with a virus that allows hackers to
remotely access them.
(C) A YouTube generated viral video that showed an episode of Battle
Bots
(D) A program that changes the default password on your computer to
'Number 5 is alive'
72
Hackers can be divided into three groups, what are they?

(A) Professional, Amateur, Novice
(B) Geek, Nerd, N00B
(C) White hat, Grey hat, Black hat
(D) Good, Bad, Ugly
73
What is the best way to keep uninvited guests from accessing your wireless
network?
(A) Restrict access to known MAC addresses
(B) Use WPA2 password protection
(C) Use WEP password protection
(D) Turn off your routers broadcast option
74
Which is the first generally accepted and known computer worm?

(A) Creeper
(B) Earth Worm
(C) Slither
(D) Brontok
75
Mobile viruses are becoming more prevalent. Which of the following affects
Android operating systems and steals sensitive information from the
devices?
(A) DroidR2D2
(B) GinMaster.A
(C) AndroidThief.B
(D) Droid
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76
Name at least one malware program that is a fake anti-virus on Mac OSX.
(A) MacSecure-plus
(B) MacSecure
(C) MacAntivir
(D) FakeMacDef.A
77
Name one commercial malware program for the Android operating system
is?
(A) SpyBubble.A
(B) AdWatch.X
(C) Genius.B
(D) All of these
78
Name the Virus that adds an IFrame into a HTML file with intent to exploit
vulnerabilities in the web browser and operating system?
(A) Virut.BN
(B) IFRameT
(C) Vulna.C
79
Some viruses may be advanced enough to have three components: the

dropper, the loader, and the payload. Name one such virus
(A) Multi.A
(B) TriplePlay.C
(C) Morto.A
(D) None of these
80
Which of these trojans targets Android users in China?

(A) Gotcha.A
(B) AutoSPSubscribe.A
(C) ChinaBulls.A
81
Which of these malware programs exploits the explosion of social

networking websites?
(A) Koobface
(B) Malface
(C) Faceworm
(D) Tweeter
82
Which of the following best describes a Trojan Horse?

(A) A macro virus embedded in email
(B) A malicious computer program embedded in an executable file
(C) A computer program embedded in an authorized program
(D) A malicious computer program embedded in an application program
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83
Name the Encryption Mechanism implemented for online banking

www.onlinesbi
(A) 32 Bit SSL
(B) 64 Bit SSL
(C) 128 Bit SSL
(D) 256 Bit SSL
84
Bypassing normal authentication in a computer System is called

(A) Trapdoor
(B) Backdoor
(C) Reardoor
(D) Sidedoor
85
Process of attempting to acquire sensitive information is called

(A) Spoofing
(B) Phisihing
(C) Morphing
(D) Spam
86
Small files that are deposited on a users hard drive when they visit a Web
site are called
(A) Codes
(B) cookies
(C) profiles
(D) trackers
87
A program that migrates through networks and operating systems by

attaching itself to different programs and databases is a
(A) virus
(B) Worm
(C) denial-of-service attack
(D) damage
88
A program that fills a computer system with self-replicating information thus

clogging the system is called a
(A) virus
(B) Worm
(D) damage
89
Programs that come into a computer system disguised as something else

are called
(A) spoofers
(B) loggers
(C) defacers
(D) Trojans
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90
An attempt to slow down or stop a computer system or network by flooding

the system with requests for information is called a
(A) virus
(B) Worm
(D) Trojans
91
Which of the following is a technique that could capture illegal user

passwords passing through a network?
(A) Encryption
(B)
Sniffing
(C)
Spoofing
(D)
Data Destruction
92
Which of the following is a technique that could be used to capture network

user passwords?
(A) Encryption
(B) Sniffing
(C) Spoofing
(D) None
93
A password is best described as a method of user

(A) Identification
(B) authorization
(C) authentication
(D) confirmation
94
A malicious code that changes itself with each file it infects is called a
(A) logic bom
(B) stealth virus.
(C) trojan horse.
(D) polymorphic virus.
95
Public key and Private key are relates to

(A) Locker Facility
(B) Digital Signature
(C) Linux OS
(D) None
96
You observe an employee connecting a data card to his system to access

internet while the system is still connected to SB Connect. What would you do?
(A) Use his system for accessing internet
(B) Tell him to use data card after office hours
(C) Advise the employee to disconnect the data card immediately and
report the activity to the Branch Manager, Manager of Division.
(D) Throw the data card out of the branch
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97
The
(A)
(B)
(C)
(D)
Anti Virus software on your system is not updated. What will you do ?
Continue with your work, since it is not your business to worry.
Tell your family members about the issue.
Tell your friend in another bank about the issue
Continue with your work and report it at the earliest
98
Which department in our bank takes care of information security issues ?

(A) Compliance Deptt.
(B) Information Security Deptt
(C) Risk Management Deptt
(D) Security Deptt
99
Where is the facility available to employees to report incidents related to

information security after logging in with their PF Index no. ?
(A) In B@NCS 24
(B) in Service Desk
(C) In Email System
(D) In Trade Finance
100 Where can an employee find details related to information security on our
intranet ?
(A) in Email system
(B) in Service Desk
(C) Under State Bank Times > Departments > Information Security
(D) In Trade Finance
ANSWERS
1
10
11 A
12 D
13 B
14 `D 15 B
16 D
17 D
18 B
19 B
20
21 A
22 C
23 D
24 A
25 C
26 A
27 C
28 C
29 B
30
31 D
32 D
33 A
34 A
35 D
36 C
37 D
38 C
39 D
40
41 D
42 D
43 D
44 B
45 D
46 D
47 D
48 C
49 A
50
51 C
52 A
53 B
54 A
55 B
56 A
57 A
58 A
59 B
60
61 A
62 C
63 C
64 D
65 B
66 A
67 D
68 A
69 A
70
71 B
72 C
73 A
74 A
75 B
76 D
77 A
78 A
79 C
80
81 A
82 C
83 D
84 B
85 B
86 B
87 A
88 B
89 D
90
91 B
92 B
93 C
94 D
95 B
96 C
97 D
98 B
99 B
100 C
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PRACTICAL PROBLEMS
Compiled by Shri P.Rajendra Prasad, AGM (Training)
1
Mehindipur farmer service cooperative society is maintaining their

current account with your branch. The Accountant of the society
has submitted a cheque favouring K.Ramdas for Rs.45000/- and
crossed account payee and requested you to credit the proceeds to
the societys account. On the reverse of the cheque the society
has given endorsement that Received payment. Payees account
will be credited on realization. Discuss whether the cheque under
question can be paid to the societys account. Is the position
changes if the amount of the cheque is Rs.55000/-. Discuss
Banks are prohibited from crediting account payee cheques to the
account of any person other than the payee named therein.
However, With a view to mitigate the difficulties faced by the members
of co- operative credit societies in collection of account payee cheques,
relaxation was extended by RBI vide their instructions, in terms of
which, banks may consider collection account payee cheques drawn for
an amount not exceeding Rs.50,000/- to the account of their customers
who are co-operative credit societies, if the payees of such cheques are
the constituents of such co-operative credit societies.
Hence in the instant case, the request of the society for crediting the
proceeds of the cheque to their account can be acceded to. We can not
collect and credit the cheque to the societys account, if the amount of
the cheque is Rs.55000/( e circular no 755 /2011-12 dt.22.11.2011)
There is a fixed deposit of Rs.1 lac in the name of A & B payable to

Either or Survivor. How will you deal
1) when A has approached for payment of the TDR duly discharged
by him only on due date.
2) When A has approached for premature payment of the TDR duly
discharged by him only stating that B expired and produced
death certificate
3) When A has approached for premature payment of the TDR duly
discharged by him only and there is no mention of B
1) Bank can pay the amount to A on due date and his discharge alone on
the TDR is enough and the signature of B need not be obtained as the
mandate is E or S
2) If the operating instruction is Either or Survivor and one of the
depositors expires before the maturity, no pre-payment of the term
deposit may be allowed without the concurrence of the legal heirs of the
deceased joint holder. This, however, would not stand in the way of
making payment to the survivor on maturity. As such A will be advised to
obtain the concurrence of legal heirs of B for making premature
payment.
3) The signatures of both the depositors may have to be obtained, in case
the deposit is to be paid before maturity. However, a modified Either or
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Survivor form from all the depositors is obtained, as per extant

instructions, at the time of opening of term deposit account, branch can
pay the deposit to any one of them even before maturity.
(e circular no 735 /2011-12 dt.19.11.2011). Please note that the answers
are the same for mandate of Former or survivor
3
Mr.Sekhar, Managing Partner of M/s Sekhar Automobiles has

approached for housing loan of Rs.30 lacs for construction of house
in his individual name in a posh locality. It is a family concern
having his wife Padmini as another partner. The firm is the
authorized dealer for Tata Motors and doing very good business.
M/s Sekhar Automobiles is enjoying credit limits with a Private
sector bank, but as our loans under housing is very competitive, he
has approached us. Mr Sekhar has been filing IT returns regularly
and in the latest IT return he has filed an income of Rs.18 lacs. As
per the latest audited balance sheet, the unit has shown seven
crores as turn over and as per the partnership agreement the profit
sharing is 75:25 between the Managing Partner and other partner.
Mr Sekhar said he heard very high about SBI Maxgain scheme and
he wants to avail the loan under Maxgain facility. Discuss how you
will proceed in the matter.
Businessmen (non-salaried customers), whose businesses have been making
profit continuously over last three years are eligible to take housing loans in
their individual capacity. However, their units should have paid all the
government dues including income tax, sales tax/VAT, electricity bills,
customs/excise etc. up to the previous balance sheet date. Income
considered for loan amount is higher of i) Income as per latest IT return +
Depreciation claimed.(ii) 5% of annual sales revenue as per latest audited
balance sheet. In case of partnership firms, depreciation and sales revenue
can be reckoned in the profit sharing ratio. Accordingly, the eligible loan
amount is higher of Rs.18 lacs (as per IT return) or 75% of 5% of Rs.7
crores ie.Rs.26.25 lacs. As such he is eligible for a loan of Rs.26.25 lacs
only and we can not sanction Rs.30 lacs as desired by him. Since the
eligible loan amount is calculated on the basis of turnover higher margins
would apply. Home loans sanctioned to businessmen have to be opened
under Term loan facility only and as such he is not eligible for SBI Maxgain
scheme. The position will be explained to Mr. Sekhar, and if he is interested
we will proceed further in the matter.
( As per master circular of home loans- e-circular 894 dt 09.01.2012)
(Compiled by Shri L.J.Meclarin)

1. Your bank has a branch in a semi-urban area which offers Safe deposit
Locker facility. Flash floods entered the branch premises and destroyed
most of the contents in the S.D. Lockers. Discuss the banks position in
this regard.
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The banker-customer relationship in the case of a locker is licensor-licensee( as

per SBI documentation). The Bank has to exercise ordinary care and caution. In
the event of natural calamities like floods etc. the banker will not be held liable as
the cause was external to himself and beyond his control. As such he is absolved
of his liability for the loss or damage. Ordinary and prudent care by the banker
cannot prevent natural calamities.
2. Mr. X has a safe deposit locker facility with the bank. He has not paid
the locker rentals despite reminders. Mr. X has a clean overdraft at
another branch of the bank, which is irregular, and time barred. One
day, he comes to the bank to operate the locker. The Branch Manager
refuses to allow him to operate and says that he has a lien on the
contents for the above dues. Discuss.
In the instant case the bank cannot exercise general lien on the contents of the
locker. The articles are kept for safe keeping only. However, it can exercise a
particular lien on the contents of the S D Locker for any arrears in rentals.
3. Mr.A & Mrs.A have S D Locker account operated on E or S basis. Mr.A
telephones to the bank that the key has been lost and that Mrs. A is
insane. Later, Mrs.A comes to the Bank with locker key to operate the
SD Locker. How will you handle the situation as Branch Manager?
In the instant case, the bank should not take cognizance of the telephone call of
Mr.A informing that his wife has become insane. Her insanity has to be properly
established. However, he also informs about the loss of key whereas Mrs. A has
come to the bank with the key to operate the locker. Thus, a possible dispute or
misunderstanding between Mr. A & Mrs.A cannot be ruled out. The bank has to
allow further operations against joint mandate only. It is preferable to persuade
them to close the locker account in view of their apparent deep disagreement.
4. A new Accountant has assumed charge at the Branch. He has observed
that a number of items relating to unclaimed items in the locker room
are held as safe deposit articles in the joint custody of Accountant and
Manager (Cash). Articles left by customers outside the locker are also
found in these items. He suggests that the items be disposed off and
reasonable charges are recovered for the safe keeping of the items.
How will you decide the issue?
The Branch has to take every effort to trace the true owners of the articles and
return these to them. As it is , there is no precise instructions on the subject and
hence the matter has to be referred to the Controlling authority in every case.
Under the Indian Contract act ( Sec 71), the bank is treated as finder of lost
goods in thsse cases. Section 169 pf the Act permits sale of such goods ifa) The owner cannot with reasonable diligence be found, or
b) Refuses upon demand to pay lawful charges of the finder, or
c) The thing is in danger of perishing or of losing the greater part of its value, or
d) When the lawful charges of the finder in respect of the things found amount to
two thirds of its value.
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5. Kamalakant had a locker in his sole name in our bank. He died in an

accident last week. Today, his son Jeevan comes to you with the locker
keys and a Will in the handwriting of Kamalakant stating that the
contents of the locker be delivered to him. Simultaneously, Sunita,
daughter of Kamalakant also gives a letter to the bank, stating that she
has also a claim to the property. How will you deal with theses claims?
As a matter of courtesy, the bank will send a letter of condolence to the family
members. The death certificate has to be called for and carefully scrutinized. A
Will has to be properly executed and witnessed; further, it has to be probated. A
Will without probate cannot be executed; further, there should not be any
counter-claim. The bank cannot deliver the contents of the locker to Jeevan in
view of counter-claim from his sister. The matter has to be explained to him
suitably. He will be advised to get a probate from the court. Sunitas request also
cannot be accepted. As the bank knows that prima facie, there are two legal
heirs, Probated Will or Letters of Administration would be needed. It will not be
advisable to deliver the contents under indemnity-cum-affidavit basis as there is
obvious disagreement between the claimants. Sunita will be advised that a
suitable Court order is necessary for delivering the contents of the locker to her.
If any nomination has been made for the locker, the Nominee has to be advised
of the claim received from son/daughter. If the son/daughter does not produce a
legal representation as above within a reasonable time, it will be in order for the
bank to deliver the contents to the Nominee. The matter has to be reported to
Controlling Authority for instructions.
6. 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 banks 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
Controlling Authority should be advised of the matter.
7. Mr.X has deposited with the bank a sealed cover for safe deposit. The
bank has accepted an instruction that the cover should be handed over
to his minor daughter immediately on her attaining the age of majority.
Discuss.
The Bank will accept safe deposit items deliverable only to the depositor on
demand. We will not accept items, which are deliverable to third parties as it may
be onerous responsibility to trace third parties. Only exception is acceptance of
sealed covers with a notation on them Said to contain a Will of the depositor.
Also such an item will be deliverable to the named person on his application to
the bank. Hence, it is not in order to have accepted the condition. The depositor
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should now be contacted and persuaded to take delivery of the article; if he

refuses, due notice should be given and the deposit should not be continued
after the current period. Legal opinion has to be obtained and action to be taken
on these lines.
8. A number of securities in the name of Mr.X who is a minor are kept by
his father, a valued customer of the bank in safe custody. Mr. X is now
a major. He claims all the securities being the rightful owner. Discuss.
Although Mr.X is the rightful owner of the securities they will not be delivered to
him as the original contract has been established by the bank with the father of
Mr.X. Hence the securities can be delivered only to the father. Mr.X will be
advised accordingly.
9. A left a box in safe custody with the bank said to contain gold
ornaments. After As death, the box was handed over to Mrs.A. The
original wrapper and seals were not found; instead, the banks wrapper
and seals were found. The box was also lighter in weight than when it
was left with the Bank. Mrs. A refused to take possession of the box.
The bank refused to give open delivery of the box. Meantime, Mrs. A
also died. The legal representatives filed a suit claiming the delivery of
the ornaments. The bank contested that it was not aware of the
contents and hence not liable. Discuss.
In a similar case, the court has held that the condition of the box at the time of
delivery was not the same in which it was entrusted to the bank. The bank had
put its own wrapper replacing that of the depositors. The bank is a bailee and it
ought to have taken due care of the goods. The bank, therefore, has to make
good the loss. The bank may have to pay interest for the delay.
10. Mrs X has kept a sealed packet in safe custody in your bank.
Suddenly Mrs.X passed away. Her son comes to the bank and requests
the bank to handover the packet to him. He states that he is the only
legal heir and his father had also died. Discuss.
In terms of present RBI guidelines the safe custody article can be delivered to
the legal representatives on affidavit cum indemnity basis. However, we have to
satisfy ourselves that the son is the only legal heir. Otherwise, all legal heirs have
to jointly sign the affidavit cum indemnity. The affidavit has to be made out by 2
respectable persons. Also the indemnity has to be signed by the son and two
persons. The two persons must be good standing and integrity and each worth
for the amount claimed.
(Compiled by Team SBLC & updated by Shri K.Ramesh Babu, Chief Manager)
1. It is brought to your notice by the cashier that five one thousand rupee
notes bearing political slogans of a political party is received. These
notes are otherwise in order. What shall be your advice to the cashier
in respect of these notes as a branch manager?
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As per the provisions of Legal Tender (Inscribed notes) Act, 1964 any currency
note carrying any message of political character is not a legal tender. The cashier
will be advised not to accept such notes even if they are otherwise in order
2. A revolving L.C for Rs 50000/- has been established. Two drafts
amounting to Rs 25000/- were received and paid under the L.C. When
a third draft for Rs 10000/- is received under L.C, importer requests the
bank not to pay the draft since the goods received in consignment is
not in good condition. Discuss.
According to Article 5 of the UCPDC, the Bank deals in documents and not in
goods covered by the documents. Therefore if the documents are in order the
bank can debit the amount to the customers account. The customer has to take
up his remedy with the exporter
3. A a reputed customer alleges that the Bank has wrongfully debited his
account with Rs 10000/-, without his mandate. On scrutiny you find
that his son had cleverly forged his signature and withdrawn the
money from the account. The Bank has sent the statement of account
for the past 6 months in time. Discuss the Banks position.
The Bank has obviously paid a forged cheque; the Bank has no authority to pay a
forged cheque however cleverly the forgery has been effected. A forged cheque
is no mandate from the customer. The Bank is obliged to refund the money to
the customer. Moreover as per Indian Law, there is no duty cast on the customer
to scrutinize the statement of account.
4. Mr A is granted an overdraft by the bank against an LIC policy. He
commits suicide. Discuss.
Suicide Clause affects the original parties and not the holders for value. The LIC
of India will treat the assignee viz. the Bank as the only person entitled to the
benefits of the policy.
5. Corporate Bank receives a cheque of Rs 5000/- for payment in clearing
from account of their customer Mr Sharma. The cheque is originally
payable to Mr. Ramnath who has endorsed it in favour of Mr Suresh
Prabhu, by putting his thumb impression and not by way of signature.
The collecting bank has added their confirmation confirming the
endorsement. It is observed that the cheque is crossed as notnegotiable. What would you do with the cheque?
The bank would make the payment of the cheque. An endorsement u/s 15 of NI
Act means signing for the purpose of transfer of the property in a negotiable
instrument so as to constitute the transferee for consideration, the owner. In this
case, though the element of signatures appears to be missing but putting in of
thumb impression by the payee also amounts to signing. Hence the endorsement
by way of thumb impression is considered proper endorsemen. Since the
collecting bank has confirmed the endorsement, the paying bank can pay the
instrument inspite of the fact that the cheque is crossed as not-negotiable
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6. Is the Bank eligible to set off credit balance available in a joint account
against a debit balance of one of the joint account holders?
The debt owed by a bank to joint depositors (i.e credit balance) cannot be set off
against the debt owed to the bank by one/some of the joint depositors (i.e debit
balance), as both the debts are not due in the same right. Hence, the bank
cannot exercise the right of set off.
7. Mr A an old customer of your bank had appointed Mr B as his power of
attorney holder for operating his current a/c and subsequently gone
abroad. Today you come to know that Mr B has died. You receive two
cheques for Rs 1000/- and Rs 2000/- in clearing signed by Mr B
favouring creditors of Mr A. A cheque of Rs 3000/- signed by Mr A
(before appointment of Mr B as attorney) is also received for payment
of dues under his American Express Credit Card. What will be your
course of action?
According to Sec 201 of Indian Contract Act the contract of Agency gets
Terminated on the death of the principal or agent. However, as the agent signs
in a representative capacity and the principal is alive, the cheques signed by B
can be paid. Also, the cheque signed by the principal should be paid as the
power to operate on the account is not affected.
8. How will you act when the following cheques are received for
payment? (A) An order cheque favouring a minor is endorsed by the
minor and a third party presents the cheque for payment; (B) A cheque
is crossed and below the crossing the words crossing cancelled is
mentioned under drawers full signature. It is presented for payment
by the payee across the counter.
According to Sec 26 of N I Act a monor can draw, endorse, negotiate and deliver
negotiable instruments so as to bind all others except himself. Hence if the
cheque is otherwise in order it can be paid. b) There is a risk of forgery of
drawers signature as his signature is available in the cheque itself. Hence, as a
measure of abundant caution, IBA has taken the view that it is not safe to pay
such a cheque to third parties. It can be paid only to the drawer or his known
agent
9. Mr Sharma and Mr Verma maintain a fixed deposit receipt with your
branch payable to either or survivor, becoming due 3 years from the
date. They have nominated the son of Mr Verma for the deposit receipt.
Incidentally Mr Varma expires and the nominee approaches you to
make payment of the TDR to him, since he is the nominee and he has
right to get the payment, even by prematurely closing the TDR. What
would you do?
This being a TDR payable to either or survivor and Mr Shrma being alive, the
nominee does not come in picture at all. The deposit receipt during the life time
of the survivor will be at his disposal and the nominee has no right to intervene.
As a result, the request of the nominee cannot be accepted
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10. There is a joint current account in the name of A & B on E or S basis.

A cheuqe for Rs 3000/- was presented by A at 2 pm. Thereafter he
went to the BMs cabin for some discussion. The working hours of the
Bank is only up to 2.30 pm. The bank paid the cheque at 2.45 pm. On
the same day Mr B comes to the bank with a letter to stop the payment
of the said cheque which was withdrawn by Mr A. He also says that the
bank paid the cheque after the business hours and therefore he will sue
for damages. The stop payment instruction was given by Mr B at 3 pm.
Discuss the banks position
As per Sec 65 of the NI Act, payment of cheque presented for payment after the
banking hours is not a payment in due course. However, in this case, Mr A
presented it within the banking hours and the cheque was paid in due course.
Hence, it is a payment in due course. The Bank cannot accede to the stop
instruction given by B. In the present case, the cheque was presented within the
working hours. A slight delay in payment due to processing time, waiting time etc
will not make the payment not in due course
11. A SB account is in the style of C the guardian of AB minor. The
minor dies. The guardian approaches you for withdrawing the balance
It appears from the style of account that the guardian is not a natural guardian.
Hence, the moneys belonged to the minor and therefore the balance can be paid
only to the legal representatives of the deceased minor.
12. A is having a TDR for Rs 1 lakh. He approaches you with a request to
nominate his 3 sons to the deposit as he is not keeping good health for
some time. How can you help the customer?
Only one individual can be appointed as a nominee. Hence his request cannot be
acceded to. However, we may suggest to him that the deposit may be split up
into 3 deposits of equal amount and each son can be appointed as a nominee on
one deposit.
13. A TDR for 1 year has been issued on 1st Jan to A, B & C payable to
anyone or survivor. A dies on the 4th April; B dies on the 5th May and C
dies on the due date i.e on 1st Jan next year. Examine who were
entitled to the deposit on the 4th Arpil,5th May and on the 1st Jan.
The deposit became payable to B & C on the death of A; to C on the death of B.
on the due date the deposit is payable to C. As he is dead, it is payable to his
legal representatives.
14. Corporate Bank had leased a locker in the name of Mr Dinesh and his
wife Mrs Usha to be operated by either or survivor. Mr Dinesh has gone
on a study visa to UK for 2 years. Due to a family function, Mrs Usha
needs to operate the locker but she has misplaced the keys of the
locker and makes a request to the bank to break open the same. She is
ready to pay charges, if any. What should the bank do to help her?
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In case of loss of key, the bank and the customer has no option except to get it
broken-open from the supplier/manufacturer. But the bank needs request for
breaking opening the locker, from all the account holders since either or
survivor is meant for operations as per the mandate given to the bank. Mrs Usha
would be required to get a letter of authority from Mr Dinesh by fax or other
medium of communication. Meanwhile, bank can also get in touch with the
supplier/manufacturer for making arrangement to break open the locker and also
for sending the cost estimates to seek consent of the customer to pay the
charges. Bank should also mark caution on bank records about loss of key
15. AB Trading company is a partnership firm with 3 partners A,B and
C. The partnership deed has provided for profit sharing in the ratio of
50:40:10 for A,B and C respectively. The outstandings in the cash credit
a/c of the firm is Rs 30000/-. C has approached the bank and offers to
pay Rs 10000/- as he wants to retire from the partnership. Discuss.
The offer of C should not be accepted by the Bank. The liability of partners is
both joint and several. Each of them is liable to repay the entire outstandings to
the Bank. The percentage of profit sharing is an internal arrangement among the
partners and does not affect the rights of the creditor. Further, if the partnership
property is not sufficient to repay the debts, the creditors have a right to proceed
against the personal assets of the partners.
16. A minor avails an overdraft with the bank by misrepresenting his
age. The overdraft is guaranteed by Mr.X. It is irregular and barred by
limitation. The minor attains majority. When contacted by the bank he
undertakes in writing to repay the OD but eventually fails to do so.
Discuss the banks position.
The original contract has been with a minor which is void ab initio. This is so
even if he misrepresents his age. Thus the bank cannot proceed against the
minor even on the basis of a letter of undertaking given by him as a major. There
is no consideration for the undertaking given after his majority. Mr X, the
guarantor is also not liable, as the principal contract itself is void.
17. Mr Raj kumar, the guardian of Master Shanker aged 15, mortgages a
commercial shop in the name of the minor for securing an education
loan obtained by Mr Raj Kumar for completion of education of Master
Shanker. When the minor attains majority and is unable to repay the
loan, the bank threatens to proceeds under the provisions of SARFAESI
Act 2002, to which Shanker objects stating that mortgage is void. What
is banks status to recover the loan by sale of mortgage property.
Bank cannot sell the mortgaged security since the mortgage is void at the
instance of the minor. U/S 8 of The Hindu Minority and Guardianship Act 1956,
the natural guardian of a minor cannot without previous permission of the court,
mortgage or charge, any part of the immovable property of the minor. Any such
action of the natural guardian is voidable at the instance of the minor. The court
can grant permission to natural guardian to do so in case of necessity or for
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evident advantage to the minor. In this case, no such permission has been
obtained by the guardian.
18. Company A has deposited Rs 35000/- as salary into Rameshs
account with the Bank and later claims that he is entitled for
Rs.32000/- only and the excess amount was erroneously credited and
wants the Bank to reverse the entry and refund the excess amount.
Discuss Banks position
The Bank has carried out the instructions of the company correctly and credited
the account of Ramesh with Rs 35000/-. Once the amount is credited the money
belongs to Ramesh and his account cannot be debited by the Bank on the
instructions of the company. The authority of Ramesh is needed to debit his
account. Hence we will request the company to settle the matter directly with
Ramesh who is its employee.
19. Smt A, an old lady aged 60 years, requests that after her death the
Bank should allow Shri B, her eldest son to operate on her account
without any difficulty. How will you deal with the request of the lady?
Knowledge/notice of death of the constituent precludes the Bank from debiting
his account from the date of receipt of such notice. The mandate/authority would
automatically cease to operate after the death of Smt A and as such Shri B, her
eldest son, would not be allowed to operate on the account. In order to deal with
her problem, she should be advised to open a joint account with the son in the
style of Former or Survivor. Alternatively, she may be advised to avail of the
Nomination facility
20. Shri X, an undischarged insolvent, presents for cash payment a
cheque for Rs 10000/- drawn in his favour by your constituent. The
Bank has no knowledge of the insolvency of the presenter. As a Branch
Manager will you pay such a cheque?
Pursuant to Section 10 of N I Act, paying banker is discharged by making the
payment in due course. The above section protects the Bank if the Bank has
acted in good faith, without negligence and paid the amount in due couse to the
holder Shri X. The cheque in question should be paid (provided it is otherwise in
order) as the Bank has no knowledge of the insolvency of Shri X.
21. Shri P, the payee of a draft payable at your branch, reports that the
draft is lost. He requests you to stop payment of the draft. The same
day the draft is presented by Central Bank of India through clearing.
The draft is purportedly endorsed by the payee and collecting banker
has also guaranteed the endorsements as First payees endorsement
confirmed; Second payees account will be credited on realization.
Would you pay the draft or return it?
A bank draft is the banks own commitment (promise) to the payee. It is a
negotiable instrument and the bank is bound to pay it when presented by a
bonafide holder, provided it is otherwise in order. As the collecting banker has
also guaranteed the first payees endorsement, the bank is protected under
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Section 85-A of NI Act and discharged by payment in the due course to Central
Bank of India. Therefore, the request of Shri X should not acceded to.
22. Mr Prabhu has been maintaining with Popular bank, a saving bank
account with a balance of Rs 23450/- and a term deposit of Rs 35000/to mature, 2 months from now. He has also taken on hire, a locker from
the bank the rent of which is due for payment, but through an
oversight the rent has not been recovered. The bank, today morning
received an attachment order of Rs 66870/ and also a garnishee order.
What action should be taken by the branch.
After recovery of the rent on locker, the balance amount would be paid to meet
the demand under the attachment order. The bank has right of set off available
against bank deposits, where it has to recover its own dues even when
attachment order or garnishee order is received. Before remitting the money to
meet the demand, the bank can always recover its dues. As regards the
garnishee order, the amount in both the account not being adequate, the bank
will make the payment attachment order only, as that get priority in payment, if
both the orders are received simultaneously.
23. Mr. Subbarao is maintaining savings bank account, which is showing
a credit balance of Rs.25,000/- on 15th Sep2010. You receive a cheque
for Rs.25000/- issued by Mr.Subbarao in clearing. How will you handle
this cheque? Will your decision change if the cheque is presented on
the counter for cash payment?
The minimum balance instruction is applicable between the drawer and the
drawee. As the amount in the account is sufficient to meet the cheque, the
cheque has to be honored. Even if the cheque is presented across the counter
either by the account holder/third party it has to be paid. However, charges may
be levied for non maintenance of minimum balance. Now, charges for not
maintaining minimum balance is waived for P segment customers.
24. Mr.Anand & Mr.Narayana Rao are maintaining current account with
the mandate former or survivor. The account is showing a credit
balance of Rs.3,00,000/-. Due to dispute between them, Mr.Narayana
Rao instructs the branch vide his letter to stop the transactins in the
account. The counter clerk seeks your clarification. Please clarify?
Bank is not bound to stop the operations of the account on the instructions of the
survivor. In case of accounts with the mandate former or survivor, the bank on
receipt of instructions to stop the operations from the survivor is not bound for
compliance of instructions. Bank will not act upon the instructions given by the
survivor but simply inform the former about the instructions given by the
survivor. Survivor comes into picture when the former dies.
25. Smt. Himabindu a working woman has opened a Savings Bank
account in the name of his minor son Vamshi, operated by her in the
capacity of a guardian. Now she wants to close the account, having a
balance of Rs.50,000/-. However, Shri Sivaram, husband of Mrs.
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Himabindu serves a letter to you requesting you not to close the

account, and not to pay any amount to Smt. Himabindu because he is
the natural guardian of Vamshi. How do you deal with the case?
(i) As per Hindu law, the father is the natural guardian, and after the death of
the father mother can act as a natural guardian. Due to Supreme Court
Judgment RBI has given the instructions to the bank to allow the mother to
operate the accounts of minor children independently in the capacity of the
natural guardian, even when the father is alive.
(ii) As such, we will explain the position to Shri Sivaram, and close the account
and pay the amount to Smt. Himabindu.
26. Shri Sundar Ram, who was maintaining Rs..2 lacs in the Savings
Bank Account, died recently. Today you have settled the account, by
transferring the balance along with accrued interest for credit of Shri
Ramesh, his son and also the nominee of the account. However you
have received an Income tax Attachment Order against Shri Sundar
Ram for Rs.50,000/-. How do you deal with the situation?
(i) Income Tax Attachment Order is for the dues from Shri Sundar Ram to the
Government.
(ii) We could have attached the amount from the account of the deceased,
before settling the claim of the nominee.
(iii) However, we have already settled the account of the deceased to the
nominee. (iv) Hence we have to inform the same to the IT Authorities, giving the
details about Shri Ramesh, the nominee, so that they can proceed against Shri
Ramesh to recover the dues.
27. B.Ramesh, an HNI, maintains with you a Savings Bank Account with
average balance of Rs.35,000. He has TDRs worth Rs.1,24,000/- and
STDRs ' worth Rs.2,33,000 with your branch. Now, he submits to you
an application requesting you to convert the STDRs into TDRs and
arrange for monthly payment of interest on all the TDRS. What
precautions will, you take ?
The usual request letter for conversion of STDRs into TDRs and for payment of
monthly interest on the aggregate of TDRs will be obtained, the following
additional precautions will have to be taken:
a. While closing the STDRs and opening TDRS, tax deductible at source will be
deducted and deposited o the government account, under section 194A of the
Income Tax Act.
b. While calculating monthly interest payable on the aggregate TDRS, only the
net interest after deduction of tax at source will be paid to the depositor.
28. Master Chinku, a minor boy of 11 years old, was nominated by Shri
B.Ramesh, minor's uncle, in a Term Deposit Account of Rs.55,000. The
nomination was made on 23.11.2008 when the minor's age was 11
years. On 20th April 2009, the depositor holder died, The minor came
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to the bank on 28th April 2009 and asked for payment. Please discuss
the various aspects and how you will deal with the matter
The issues involved here are : Whether the account holder also appointed
another individual not being a minor, to receive the amount of deposit in case of
death of account holder during the minority of the nominee. Whether the
nomination was valid in all other respects such as witnessing etc. in case no
other individual, not being a minor, was appointed to receive the money during
the nominee's minority, the deposit will be continued and paid to the nominee on
his attaining majority.
29. Mr.Ramaiah & Mr.Krishnaiah are having Savings Bank Accounts with
a balance of Rs.95,000/- and Rs.1,50,000/- respectively. Being friends,
both have planned a holiday to Mumbai. While they are visiting
Mumbai, communal riots have broken up in Mumbai leading to curfews
& police firing. The family members back at their home were worried
about the safety of Ramaiah & Krishnaiah. Both of them telephoned
and advised that they are coming back. Even after a lapse of 3 months
they have not reached home town. The enquiries made by the family
members are futile. After having thorough enquiries for a further
period of 12 months, the family members approached you ( Branch
Manager) for withdrawing the amounts for meeting their domestic
requirements. Please advise the procedure to be followed in paying the
amounts to the family members?
The settlement of claims in respect of missing persons is governed by the
provision of Section 108 of the 'Indian Evidence Act, 1872'. As per the provisions
of section 108 of the Indian Evidence Act, presumption of death can be raised
only after a lapse of seven years from the date of his /her being reported
missing. As such, the nominee /legal heirs have to raise an express presumption
of death of the subscriber under section 108 of the Indian Evidence Act before a
competent court. If the court presumes that he/she is dead, then a certificate to
that effect is issued and the claim in respect of missing person can be settled as
is done for any other deceased accounts.
In line with the RBI instructions, it has been decided that the claims up to a
threshold limit of Rs 100000/-(Rs one Lac only) will be entertained without
insisting for valid death certificate. All such claims 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.
Mr.Ramaiah : Balance Less than one lac Reported missing period more than
one year. By obtaining the three documents claim can be settled just like a
deceased claim
Mr.Krishnaiah : Balance more than one lac. Claim can be entertained after 7
years by obtaining a certificate from the competent court under Section 108 of
the 'Indian Evidence Act, 1872'.
30. Mr. Viswam, a visually impaired, maintains a self operated savings
bank account and approches you for issuance of cheque book on the
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account. When you enquired with Mr.Viswam, he expressed that he is

not able to come to bank regularly and wants you issue cheque to some
third party for encashment. What do you advise Mr.Viswam basing on
the extant instructions & Court decisions?
Where the depositor(s) insist(s) on self operated cheque facility account, the
same may be acceded to.
In case of self operated cheque facility account of visually impaired
depositors, the third party cash payment of self drawn cheques is not
permitted
Existing procedure for operation by cheque in the blind / visually impaired
depositor's account in the sole name may continue to be permitted, under the
signature of a duly constituted power of attorney of the account holder
Where one of the depositors is visually impaired/blind, a joint account, to be
operated by 'either or survivor' or 'anyone of us or survivor(s)' may be opened
and only the co-depositor, who is not blind, is allowed to operate on the
account by means of cheques.
In case, both / all the joint account holders are visually impaired / blind, then
the account will be operated as given below:
a. Under the duly constituted attorney of the (visually impaired / blind) joint
account holders.
b. Where the visually impaired / blind depositors/account holders decline to
operate their 'cheque facility account' in joint names through a power of
attorney and insist on self / jointly operated cheque facility account, their
request may be acceded to
In the present case Mr.Viswam is permitted to have Self Operated Cheque
Facility subject to the above instructions. As the account is self operated
cheque facility account no third party cash payment of self drawn cheques.
Compiled by Shri T.V.N.B.Raju
31. An S.B. account holder has deposited Rs.5000/- in one of the
counters of your branch. The same has been updated in the Cash
drawer of the Cashier however customer account has not been credited
and as such the same is not reflected in the customer Pass Book also.
The customers requests for updating the Pass Book with the latest
entry. Discuss.
The entry would have been in Queue for authorization by a Checker or in
Hanging Cash Transactions. Hence we should do the needful by getting it
authorized or by transmitting it from Hanging Cash transactions. Or it would have
been a single sided entry for which a rectification to be done in Cash BGL
transactions-single sided postings, so that the account gets posted. In any
event, we should put our best efforts to see that customer account gets posted
immediately and no complaint is made by the customer.
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32. A non home S.B. customer deposits an outstation cheque for

Rs.20,000 issued by his friend.
He demands that the same be
immediately credited to his account. Discuss
Instant credit is afforded to properly introduced account which is in operation for
a minimum period of 6 months and the conduct of the account should be
satisfactory. In the Core Banking environment, Non Home Branch customers
should not be discriminated and should be treated at par with Home branch
customers. Hence instant credit may be afforded if the conduct of the account
and the instrument are otherwise in order.
33. A supplier of services for your branch has approached you for
payment of a Banker Cheque for Rs.550/- which is dated 08.01.2007.
The Single Window operator made enquiries in CBS and advises the
customer that the Banker Cheque has already been paid. You are
accountant of the Branch and the customer approaches you for
payment. How will you deal with the situation?
It has been found in the CBS that the status of the B.C. is "paid". As the B.C. is
more than 3 years old, it could have been credited to Branch Charges a/c. It
must first be verified as to the mode of payment of the B.C. and where the
proceeds have been credited. If it is credited to Branch Charges a/c, it must now
be paid by debit to Branch Charges a/c after verifying the credentials of the
payee. Or, we should verify whether any duplicate B.C. is issued and paid
subsequently. If it is so, it should be advised to the presenter.
(Compiled by Shri G.Venkateswara Rao)
34. A & B maintain savings bank account with mode of operation E or
S. a cheque issued from the account is signed by A and
subsequently alteration is authenticated by B. The cheque was
presented for payment. Discuss the course of action for you.
We have to ensure that the payment is in due course. The mandate for
operation of the account is E or S. Hence any cheque issued by A and alteration
authenticated by B is in order and constitutes payment in due course. The
cheque can be paid if otherwise in order.
35. A cheque is presented with amount expressed in figures only. What
would you do with the cheque.
Writing the amount both in figures and words is a well established banking
practice. If the amount of the cheque is expressed in words only but not in
figures, the bank may get protection under Sec.10 of NI Act for paying such
cheque as the intent of drawer is clear. When the amount is expressed in
figures only but not in words, the Bank may not get protection under Sec.10 of
NI Act if such cheque is paid, as it will not be deemed as Payment in Due
course.
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36. When verifying the loan documents of SME advances, you came
across a time barred document. What you propose to do?
Since any revival letter obtained after period of limitation will not revive
limitation and give fresh cause of action for legal proceedings. However, an
unqualified acknowledgement by way of undertaking / promise to pay obtained
after period of limitation gives a fresh cause of action. Hence in this case, I
propose to obtain an unqualified acknowledgement.
37.
Mr.A, an entrepreneur came to you for financial assistance to set up

a new venture in a leased premises belonging to Minor X represented
by his natural guardian Y. Natural guardian Y is proposing to execute
the lease agreement for 20 years on behalf of minor X. How do you
assess the position?
As per section 8 and 11 of Hindu minority and guardianship act, no person shall
be entitled to alienate/ dispose the property of Hindu minor merely on the
ground of being de facto guardian. Hence the lease is null and void ab-initio.
Hence the assets pledged to the bank kept in such a premises poses risk. The
same will be advised to the party.
38. M/S.XYZ enterprises approached you for working capital finance. The
firm is a unregistered partnership firm supplying its products to
Government and private purchasers on contract basis on 90 days
credit. Hence most of the current assets will be in the form of
receivables. How do you proceed?.
Since an unregistered partnership firm cant sue third parties to enforce rights
arising from a contract, the firm will not be in a position to sue its debtors. This
demerit will be advised to the firm.
39. Mr.A, a valuable depositor of your Branch passed away. Mr.B, one of
the sons of Mr.A came to the Branch with nomination
acknowledgement for all deposits held by Mr.A. However on
verification of the CBS records as well as Nomination Register and
account opening forms, you noticed that such records are not
available for some of the deposits. How would you deal with the
situation?
For deposits in respect of which nomination is available with us, we will act as
per the nomination if other things are in order. However for deposits in respect
of which nomination records are not found with us, we will advise Mr.B about
the non-availability of mandate of the depositor and we will counsel him in
respect of liberalized deceased constituents settlement process and convince
him to adapt the same.
40. A term loan sanctioned to a trust is running irregular. The trustee
Mr.A is also having an E or S SB account along with his wife Mrs.B.
Mrs.B is not a trustee. On 15th March, when stamping of NPAs is to be
done, you noticed sufficient balance in the SB account which is
abundantly sufficient to prevent the trust account from becoming NPA
. What you propose to do?.
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No doubt, a trustee is personally liable for the borrowings on the trust account
for an advance granted to the trust. But the reverse is not true. In the given
case since the account operated is E or S, bank can think of to set off 50% of
the balance in the account for credit of trust loan account so as to prevent the
same from becoming NPA. However, due notice shouldbe given to both A & B
about Banks intention to exercise right of set off.
41. Mr.A, a rich farmer has availed Gold Loan of Rs.1.00 lakhs from your
Branch and he is also enjoying Rs.0.50 lakhs as KCC and Rs.2.00 lakhs
as KGC. Mr.A has repaid the entire GL by which time his KCC and
KGC became doubtful assets. How do you proceed?
I will make all necessary market queries regarding the financial status of the
borrower. If it proves that he is turning out to be wilful recalcitrant defaulter,
then the Gold Ornaments can be detained by exercising general lien available
to bankers till such time the other loans are repaid/position regularised. A
banker can exercise general lien and may retain as security for a general
balance of account, any goods bailed to them during the course of normal
banking business. For this it is not necessary that the debt due has arisen on
the said goods or otherwise.
42. ABC & Company had deposited Rs.20,000/- in their current account
on 24.01.2001 and issued a cheque for Rs.15,000/- in favour of Mr.X.
the bank credited this sum by mistake into the current account of ABO
& Company. So, when the cheque favoring Mr.X was presented
through clearing, it was returned with the remark insufficient funds.
Meanwhile ABO &Company has withdrawn the amount and ABC &
Company has threatened the bank with legal action for losses and
loss of reputation. How would you deal with the situation?
In this problem, the negligence occurred on the part of the banker. Hence the
amount of Rs.20,000/- to be credited to ABC & Co account immediately without
waiting for recovery of the same ABO & Co as a goodwill gesture. Then we
should write a letter of regret explaining the happening and advising the
rectification of the mistake. In the letter we should also quote the banks
compensation policy for such occurrences and our willingness to act
accordingly.
43. Mr. A maintains the following accounts at your Branch:
a) two current account No:I & II
b) SB account in the name of A.
c) A TDR account in his name.
d) A current account in the name of Mr.A and Mr.B.
e) A STDR account ni the name of Mr.A- A/C D.
All accounts are running in credit except Current account-I which is
sometimes overdrawn and the same is being allowed by you
depending on the right to set off. Examine which accounts are eligible
for right to set off? Why?
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Right of set off can be extended in case of the following 3 accounts standing in
the name of Mr.A:
i) CA-II ii) SB account in the name of Mr.A iii) TDR in the name of Mr.A.
in case of first two of the above accounts, right of set off can be extended as
and when warranted. In case of TDR account, the same can be extended only
on maturity.
In case of the remaining two accounts, right of set off cant be extended
because the debt is not due by and to the same parties and in the same right
44. Your Branch has current account in the name of A, B and C to be
operated by anyone of them. You receive that A is dead and after
that a few cheques drawn by A are presented for payment. The
cheques were signed by A before his death. The account has a
overdraft arrangement and presently the balance in the account is
credit balance of Rs.50,000/-. B and C want the cheques to be
paid and the account to be continued. What you propose to do?
The mandate of A ceases to operate after his death. However as the account
is to be operated by anyone of them and the remaining two account holders
want the cheques to be honoured and since there is credit balance in the
account, the cheques can be paid.
However it should be ensured that in no case, the account comes into debit
balance, as the Claytons rule comes into force and the deceased constituents
assets and legal heirs cant be sued for recovery. Eventually it should be
ensured that the old account is closed and a new account is opened in the joint
names of B and C.
45. Mr.N is maintaining a SB account at your branch. A cheque dated
31st March,2009 for Rs.6,500/- drawn by him was paid by you on 05th
April,2009. subsequently when updating his passbook he realised the
objection that the cheque was drawn for Rs.500/- only. When the
cheque was examined under ultraviolet lamp, it transpired that the
cheque was chemically altered and Mr.N alleges negligence on the
part of the Bank. How would you deal with the situation?
The material alteration of Negotiable Instrument must be made in the material
part of the instrument i.e; date of instrument, alteration of amount, alteration
in place of payment, change of order instrument into bearer instrument etc and
as per Section:87 of NI act, any material alteration without drawers
authentication is void. However as per Section:89 of NI act, protection is
available to the paying banker in case of material alteration which is not
apparently obvious. From the facts stated above, it is clear that the banker
while making the payment has not acted in good faith and his negligence
facilitated commission of fraud by the third party. Hence the burden of proof
that he has not acted without negligence is difficult to be proved resulting in
customers claim to be honoured by way of reimbursement of excess amount
paid.
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46. Your bank had given a loan of Rs.2.00 lakhs for starting a bakery
against the security of hypothecated goods like oven and also a
surety. The borrower defaulted in repayment and you issued a notice
to the borrower and surety. The surety replied that the goods
hypothecated were sold to so and so person and bank has wilfully
allowed the same thing to happen and hence he cant be held
responsible for the debt. Explain your position?
As per section:128 of Indian Contract Act, the liability of the surety is
coextensive with that of the borrower unless and until it is otherwise provided
by the contract. The liability of the surety can not be more or less than that of
the principal. Further, a creditor is not bound to proceed first against the
principal debtor before suing the guarantor/surety. Hence the guarantors
contention is not tenable and also bank need not disclose its proposed course
of action to secure the assets from the principal. The same will be advised to
the surety in a suitably framed letter.
47. A partnership firm with Mr.X and Mr.Y as partners is maintaining a
current account with your Branch. Mr.X dies and the legal heir of Mr.X
approaches you for the balance in the account to the tune of
Rs.65,000/-. How would you deal with the situation?
As per Section:42 of partnership act, the partnership firm came to a logical end
following the death of Mr.X. However the balance in the account is payable
jointly to the legal heir of Mr.X and Mr.Y jointly. The position will be explained
to the legal heir of Mr.X in a polite and understandable manner.
48. Mr & Mrs. Raja hired a locker from your Branch on E or S basis. On
one day Mrs. Raja rushed to the Branch stating that her purse was
pocketed while travelling and the locker was also contained in the
bag. Her husband way away in London and their daughters marriage
is to take place within 4 days and her husband will be coming on that
day only. She wanted the ornaments held in the locker. How do you
go about?
Since the key is lost, the locker is supposed to be broke open for enabling the
customer. However despite the E or S operative instructions, mandate from
both the parties is required for breaking open the locker. Hence Mrs. Raja will
be advised to furnish the mandate from Mr. Raja by FAX directly at the Branch
authorizing for breaking open and explaining his own conditions which didnt
permit him to come personally. The entire exercise is to be carried out with
abundant caution and thorough inventory is to be carried out after breaking
open in the presence of independent witnesses as per extant instructions.
Depending on the bonafides and integrity of the hirers, an FIR with police in
respect of loss of bag can be insisted upon, if necessary.
49. A valuable customer of your Branch has recently joined as director of
a newly constituted Private limited Company and as per his request
you opened the current account of the company pending receipt of
certificate of incorporation duly entering the same in the formalities
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was presented for payment. How do you act?

The certificate of incorporation issued by the ROC is synonymous with the birth
certificate of the company. It is deemed that the company came into existence
legally only when the certificate of incorporation is issued by the ROC. As such
the debit on account of honouring the cheque is not binding on the company
and tomorrow the company may contest the debit legally. As such the cheque
should be returned.
50. Your Branch is attacked by dacoits holding fire arms and other lethal
weapons. They are demanding keys of strong room. What you
propose to do?
It is the responsibility of the Branch head aided by other officials to secure the
lives of staff and other customers. At the same time it is also our bounded duty
to protect the assets and valuables of the bank. In the given scenario, since
any resistance may result loss of life as well as injuries to most of the people,
the keys may be handed over to the dacoits simultaneously exercising the
following precautions:
Exploring possibility for activating alarm bell.

Careful observance of the physical features, language and mannerisms of
the dacoits with a view to report the same to police which may help the
investigation.
After the dacoits leave the place, the entire area to be cardoned off for
preserving the finger prints.
51. A company has been maintaining current account with your Branch
for the last 5 years. It transpired that the accountant of the company
who is entrusted with the custody of cheque books and maintenance
of the account has forged many cheques. The company repudiated the
debits. The branch is sending statement of account regularly on
monthly basis. The company decided to sue the bank in a court of law
as the forged cheques were paid negligently. Explain your position?
It is a clear case of forgery. In such a scenario bank is not protected as the
payment doesnt tantamount to be payment in due course. However if bank,
based on any concrete evidence, can establish that the company is aware of
the transactions taking place in the account, then we can contest the
companys charge on that ground.
52. A firm has been sanctioned a usance bill limit of Rs.20 lakhs and the
present outstandings are to the tune of Rs.15 lakhs. A party in respect
of whom bills worth Rs.5 lakhs are outstanding has become insolvent.
Those bills are due for payment within the next 15 days. The firm is
also maintaining a current account with balance to the tune of Rs.7
lakhs. How you propose to deal with the situation?
Since the bills are not due as on date, we cant think of right of set off OR right
to combine accounts as the debts or liabilities are falling due on a future date.
In such scenario the customer may or may not be liable to pay the amount in
case of dishonour of the bills and hence bank can not appropriate the amount
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of the bills from the customers a/c. Hence we have no option but to carefully
follow up for realisation of the bill proceeds and pursue the matter with official
receiver.
53. Your Branch has taken over an advance from some another bank. In
their opinion report on IBA standard format, the other bank has
ascribed satisfactory status to the account. After taking over the
account, the account became NPA immediately and on enquiry it
became evident that the status of the account is NPA with the other
Bank from whom it was taken over. What you propose to do?
The opinion report given by the other Bank on standard IBA format doesnt
carry the signature of the other banker furnishing the opinion. it will be
enclosed to a covering letter and the opinion report contains a disclaimer
clause. If the disclaimer clause is not incorporated, the other bank would be
liable for any breach of care. Notwithstanding the above, a case may be filed
against the other bank for furnishing false report and the same may escalated
to IBA through proper channel.
54. A sum of Rs.20,000/- being commission earned on a guarantee issued
at the Branch on 10.03.2010 and collected separately is credited to
sundry deposit account on 10.06.2010. Visualize the implications?
The profit of the bank would be less to that extent for 2009-2010.
CRR/SLR to be maintained on this amt in sundry deposit a/c during that
period.
The branch would receive CO Interest for this amount, to which it is not
entitled.
55. An account is opened after due compliance of KYC/AML norms
prescribed by the bank. Subsequently two drafts worth Rs.3,00,000/and Rs.2,00,000/- were collected and credited to the account through
local clearing. Immediately you are advised by the paying Bank that
the signing officials signature has been forged and the draft amount
to be refunded to them. Incidentally two cheques drawn on the
account worth Rs.5,00,000/- have been received through clearing at
the same time?
Our bank is protected if the two drafts are collected in good faith and without
negligence and under circumstances that the account holders title is not
defective. In such a case, protection is available under section:131 of NI Act.
As another bank has reported forgery and as the amounts involved were large
we may return the cheques for the reason refer to drawer and the other
bank should be asked to serve on us a court injunction on the same restraining
us from parting with the funds. Our position is not safe till such order is
received from the court.
If the amounts are already withdrawn from the account, the other bank has to
pursue its own ways for recovery.
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56. A and B opened a STDR account in the style of E or S on 06.04.2010.

later on A approaches you for converting the deposit into his single
name based on a POA (power of attorney) executed by B on
10.02.2010 authorising A to deal with Bs property. What course of
action will you adopt?
The POA is dated earlier to the date of STDR. Hence it is not dependable to act
upon. A POA executed on a subsequent date to that of STDR and specifically
authorising A to deal with Bs property including conversion of it into his single
name must be obtained. Then only such conversion is possible.
57. A retired Government employee is having TDRs worth Rs.8,00,000/and a pension account with your Branch. On one day his neighbours
rushed to the Branch stating that he has been admitted to hospital as
he suffered a heart attack in the absence of his wife. Hospital is
insisting on payment of Rs.25,000/- towards initial charges. The
balance in the pension account is Rs.75,000/-. How do you deal with
the situation?
This is an extra-ordinary case calling for extra-ordinary concern for the
customer. We will visit the customer at the hospital immediately and arrange
payment of hospital charges directly to the hospital against acknowledgement
of a responsible person clearly indicating that the amount is meant for
treatment of the customer. The witness of two respectful people, perhaps the
neighbours assisting the customer can be asked for on the withdrawal form.
Even if the debit is contested by the customer on a later date, bank can
successfully counter the same on quasi contract principle i.e; any liability
incurred by a third party in these circumstances should be reimbursed by the
beneficiary to the third party.
58. Income tax attachment order under Section:226(3) of Ir Act was
received at the Branch on 08.03.2010 attaching the monies which are
due or which may become due to Sri.k.krishna. As no such account is
available with the Branch, the IT Department was advised
accordingly. On 20.04.2010 a current account in the name of
Sri.K.Krishna was opened with substantial balance. On 10.05.2010
another attachment order was served on Sri Krishna but the balance
on that day was meagre amount of Rs.5,100/- only. The IT
Department threatened that bank failed to act as per 1st attachment
order and let the defaulter get away. What you propose to do?
No account is maintained in the name of Krishna when the first attachment
order is served and hence our first action is in order. However it would be
impossible for Branches to keep track of the all the attachment orders and
enforce the same whenever such accounts are opened. The provision of law
which states that future credits are also attached in respect of a revenue
attachment order means that the account is already on the books of the Branch
when the order is served on it. It does not apply to accounts opened
subsequently
59. A cash credit limit of Rs.200 lakhs was sanctioned to M/S.ABC Ltd, the
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subsidiary of a well known and reputed company. During negotiations

with the holding company, the holding company expressed their
inability to offer corporate guarantee and proposed to give a letter of
comfort. A decision was taken to accept the same and the advance
was sanctioned. A year later the advance became NPA. Explain the
position?
A letter of comfort doesnt tantamount to a guarantee and is not a well defined
form of contractual security. It neither offers any legal obligation. Since the
decision has been made on business considerations, we have to seek remedy
against ABC Ltd and the assets charged to the Bank. We do not have any legal
recourse towards the holding company.
60. Guarantee of A and B was obtained for a cash credit limit of Rs.2.50
lakhs. A is a school teacher with little means and about to retire and
B is a rich man with abundant means. The account went bad. A
pleaded for exemption from legal proceedings in view of his poor
state of affairs and B served a letter that exoneration of A will
exempt him as well from the legal proceedings. How do you proceed?
As per section:138 of Indian contract Act provides that release of one co-surety
doesnt discharge the other co-surety. Hence Bs contention is untenable as per
law. As such we can exempt A from the legal proceedings by suitably
mentioning the same in the claim submitted to the court.
(Compiled by N V R S Subba Rao, Faculty)
62. A loan is to be granted by a Bank. The loan requires a guarantee good
to the amount. The proposed guarantor approaches the Bank and
request the Bank to furnish adverse opinion on him in order to enable
him to absolve from becoming guarantee for the loan. What should
the bank do while responding to the guarantor.
The bank has to furnish opinion on the format prescribed by IBA. While doing
so the Bank can not consider the request of the guarantor and furnish untrue
information. The guarantor should be advised accordingly in this regard.
63. An Overdraft account has been guaranteed by a guarantor. It
subsequently became NPA and Bank has proceeded against the
guarantor. The guarantor contested that the Bank concealed the fact
of O.D of the account before execution of the documents and the
Bank failed to recover the dues despite availability of security. Please
solve this problem.
The contention of the guarantor is not tenable as it amounts breach of secrecy
and bank may be held liable. The guarantor is liable to pay without delay or
demur once the borrower defaults to pay The Bank can validly call upon the
guarantor to pay and proceed against the assets charged to it.
64.
A loan has been classified as Doubtful Asset as on 31.3.2008. The

outstandings are at Rs 36 lacs. The realizable value of the security is
Rs 16 lacs. The CGTMSE cover available is 75% of the outstandings or
75% of the unsecured portion or Rs 37.50 lacs whichever is less.
Calculate the provision for the account as on 31.03.2010
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Outstandings of the account

Rs 36.00 lacs
( - ) Realisable value of the security
Rs 16.00 lacs
Unsecured portion
Rs 20.00 lacs
CGTMSE Guarantee amount
Rs 15.00 lacs
Provision required
Rs 11.00 lacs
( Rs 5.00 lacs and 30% of unsecured portion)
65.
A,B,C,D are partners of a Partnership firm having a Cash credit limit of

Rs 40 lacs. C & D have decided to retire from the partnership firm.
They come to the branch and inform you of their decision. One Mr. E is
willing to join as a partner of the partnership firm. What steps have to
be taken to protect the interests of the Bank. Can further operations
be allowed in the account?
In the partnership firm A,B,C and D are partners. C & D have decided to retire
and one Mr E is willing to join as a new partner. 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 the 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 outstandings in the
erstwhile firm can be transferred to the new partnership firm. The exercise
should be completed within a maximum period of 2 years. The Bank, pending
completion of the above exercise can permit operations in the account provided
a continuing guarantee is executed both by the exiting as well as retiring
partners. Otherwise, the operations in the account should be stopped to avoid
application of claytons rule. A new account may be opened to put through the
current transactions till all the formalities are completed.
66.
You are a designated credit officer of an SME Branch. Mr Sanjay,

proprietor of M/s Sanjay Constructions, a construction company
approached you seeking a Term Loan for High Tech machinery and
equipments for construction activities. His requirement is around 60
Crs. He has produced all records of the past performance of the
company and other information on the dealings of the company over a
period of 5 years. You are thoroughly satisfied with the past
performance and dealings of the company. How would you advise Mr
Sanjay with regard to sanction of the Term Loan to M/s Sanjay
Constructions giving full details?
It may be suggested to avail loan under Construction Equipment Loan (CEL)
which is meant for finance of Machinery/Equipments/Vehicles for construction
activities. Appraisal to be done as a Term Loan/FCNB Term Loan. The salient
features are as under:
Credit Rating required SB-1 to SB-8 ( for Rs 50 Crs and above SB-1 to SB-7
rated companies only)
Quantum of loan that can be sanctioned under the scheme : Rs 3 Cr to Rs
100 Cr
Validity of sanction is one year from the date of sanction
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67.
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Margin : Between 15% to 25% linked to Credit Rating of the company

Tenure of the loan : Up to 4 years from the date of first disbursement
including moratorium period. Moratorium period : 6 months maximum
Pricing : Floating : For SB-1 to SB-5 , 1.5% below SBAR with monthly rests
For SB-6 to SB-8 rated companies : 1% below SBAR, with monthly rests,
with reset after six months.
(Applicability : CAG, MCG and selected SME Branches.)
A person has approached you for availing a loan of Rs 60 lacs under
SBI Realty. The Branch where you are working is prone to frauds and
extra precautions are required to be taken invariably. What are the
processes to be adopted to mitigate credit risks which sanctioning the
loan to the customer
Independent valuation of the property by two empanelled valuers to be
obtained to minimize the risk of overvaluation. Lower of the two valuations
will be considered for loan assessment.
Two title investigation reports from different lawyers-one before loan
sanction, and one before disbursement of loan under SBI Realty have to be
obtained to reduce the risk of fraud
For loans above Rs 50 lacs, a fresh CIBIL Credit Information Report on the
borrower should be obtained before disbursement of loan, in addition to the
one obtained as part of the loan sanction process.
68.
Mr X is a valuable customer of your branch who has been banking

with you for the past 20 years. He is enjoying a CC limit of Rs 25 lacs
with a present outstandings of Rs 20 lacs. The raw material worth Rs
40 lacs kept for processing has been lost due to fire accident. The
insurance company states that the stocks were insured only for half
value, so the claim could be only Rs 20 lacs that is half of the values of
stocks insured as per average clause. What is the position of the bank
in this case?
Bank should have ensured that the full market value of stocks has been insured
against fire and other risks. In the present case as against the value of stocks
worth Rs.40 lacs held by the borrower, these have been insured only for half
the value. So by applying the average clause, the insurance company will pay
50% of the value of stocks held which amount ot Rs 20 lacs. As the outstanding
in the account is Rs 20 lacs the Bank will get the claim of Rs 20 lacs from
insurance company and the account of the borrower with the Bank would be
regular. However, the borrower would suffer a loss of Rs 20 lacs since, as
against loss of goods worth Rs 40 lacs he would be getting only Rs 20 lacs. The
Bank should therefore, ensure through closer monitoring that the account of the
borrow is not rendered irregular due to the loss sustained by him on this score.
69.
M/S Party & Co. was sanctioned a cash credit facility of Rs.4 lakh by
our bank against pledge of goods and personal guarantee of Mr.X who
is not a partner in the firm. The bank subsequently recalled the
advance and demanded repayment of the amount both from the
borrowing firm and guarantor. As there was no response, the Bank
sold the pledged stocks by public auction for Rs.2, 70,000/- and filed a
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suit against the borrowing firm and the guarantor for the balance
amount due in the cash credit account. Mr.X denies his liability on the
ground that the pledged stocks were sold without his knowledge or
consent and in doing so, the bank has prejudiced his right as
guarantor. How will you deal with the situation?
The right of sale conferred by Section 176 of the Contract Act,1872 arises only if
the pawner makes default in payment of the debt or performance of the
promise at the stipulated time. Even when no period is fixed for the repayment
of debt, or the performance of the promise, the pawnee, to entitle him to
exercise the power of sale conferred by this section must prove :
a) that he had made demand for the payment of the debt
b) that the pawner had made a default and he had given due notice of sale as
required by this section.
In the present case the conditions (a) & (b) stand fulfilled. The contention of
the guarantor is that the pledged goods were sold without due notice to him
and the pawner. In case the right of sale is improperly exercised, the pawner is
entitled for damages caused thereby.
Here the pledged stock was sold in a public auction. Therefore, the damages in
this case will be difficult to prove.
70.
A Famous branch is a fully computerized branch. It has been

working smoothly since last 3 years. Suddenly, on Monday, a
mechanical failure occurred. It is the first week of the month. There
are number of customers waiting in the banking hall. There is
uncertainty regarding repairs. How you will handle the situation as a
frontline officer?
This is a peculiar situation. There is an approved disaster recovery plan at
the branch. As per this plan we will start routine banking transactions with the
help of status list. We will also appraise the customers and request them to cooperate us in this situation and assure them that the problem will be solved
immediately. We will keep all the vouchers separately and make the data entry
after repairs. If the time required for repairs is more than one day then we will
try for alternate server from nearby branch or Computer Centre at Admn.
Office.
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LEGAL ASPECTS OF BANKING: IMPORTANT SECTIONS OF VARIOUS ACTS

Compiled by Shri T.V.N.B.Raju, Chief Manager (Training)
THE NEGOTIABEL INSTRUMENTS ACT, 1881:
SECTION
3
6
9
10
15
18
DEALS WITH / TOPIC

The act is valid throughout India
Definition of a Cheque
Holder in due course defined
Payment in due course
Endorsement
When the amount in figures differs from that of in words, amount in
words to be treated as the amount ordered.
20
Holder of an inchoate instrument can complete the instrument.
26
A Minor can draw, endorse and accept an N.I.
31
Compensation to the drawer for wrongful dishonour
81
Payment of electronic cheque
85
Protection to paying Banker
85A
Protection to Paying Banker for Bank Drafts.
87
Material alteration of N.I. renders it void
89
Paying banker is protected where a cheque is materially altered but
does not appear to have been altered
99
Noting
100
Protest
123
General crossing
124
Special crossing
126
Crossed cheque to be paid through a Bank only
127
A cheque specially crossed to a Bank should be paid only to that Bank.
128
Payment in due course of crossed cheques.
130
'Not negotiable crossing' - transferee cannot have a better title than the
transferor.
131
Collecting Banker's protection
138 to 142 These sections have been introduced by Banking, Public Financial
Institutions and Negotiable Instruments Laws Amendment Act of 1988.
Sec-138: Chq. return for insufficient funds
Drawer is liable for either punishment upto 2 yerars or with fine which
may go upto twice the amount, or both if cheque is returned for want
of sufficient balance.
PARTNERSHIP ACT, 1932:
SECTION
18
19
25
30
42
69
DEALS WITH / TOPIC

Partner is an agent of the firm and agent of other partners
Implied authority of a partner
Joint and Several liability of partners for all acts
Minor can be admitted to the benefits
Death, Insolvency etc of a partner dissolves the partnership
Registered firm only can sue third parties to enforce rights arising
from a contract.
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BANKING REGULATION ACT,1949:

SECTION DEALS WITH / TOPIC
5
Defines Banking
17
Banks should transfer not less than 20% of its profits to the reserve
funds before dividend is declared.
19
Restrictions regarding advance against shares.
20
No Advance to be sanctioned by a Bank against its owns shares (it will
amount to reduction of its capital)
21
RBI has power to prescribe the purposes, margins, maximum amount
and rate of interest for advances in the public interest and also to
control credit, prevent speculative activities.
23
License for new branches
24
Maintenance of SLR (Max 40%)
29
A Bank has to publish balance sheet and P & L every year
31
3 copies of BS, P & L as of 31st Mar are to be submitted by Banks to
RBI latest by 30th June
35
RBI can carry out inspection of any Bank, also issue directives to banks
in the interest of depositors
35A
Ombudsman appointed
45 Y
Prescription of retention period for records maintenance by Banks
45Z
Return of paid cheques to Customers
45ZA to Nomination facility
ZF
THE COMPANIES ACT, 1956:
11
No partnership/association can be formed with more than 20 partners,
if it exceeds 20 it will be illegal association. In case of Banking firms,
the number shall not exceed 10
48
The company may empower any person to act as its attorney.
125
Charges to be filed with ROC within 30 days from the date of creation.
135
Modification of charge to be filed
138
Satisfaction of charge to be filed
143
Company is to maintain a register of Charges
292
A resolution must be passed at a meeting by the Board of Directors
293 1 (a) Borrowings against mortgage of the property of the company requires
authorization by the general meeting of the share holders.
INDIAN CONTRACT ACT, 1872:
SECTION
11
25
25 (3)
28
DEALS WITH / TOPIC

Minor cannot enter into a Contract
Agreement without consideration is void
A promise to pay a time barred debt is valid.
An agreement curtailing the normal limitation period for filing a civil suit
is void.
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42
59 to 61
72
124
126
128
129
131
133
134
PLEDGE:
148
151
170
172
176
182
185
190
201
202
SBLC, MASULIPATNAM
In a joint promise, all the joint promisors are liable both jointly and
severally.
Claytons rule. Appropriation of payments when several debts are
owed.
Payment made by mistake or under coercion must be returned.
Indemnity defined
Guarantee defined
Surety's liability is co-extensive with that of the principal debtor unless
provided otherwise.
Continuing guarantee extends to a series of transactions.
Death of surety revokes the continuing guarantee for future
transactions
Any change in the contract, without surety's consent, discharges the
surety.
Surety is not liable if principal debtor is released from liability by any
act or omission of the creditor.
Bailment defined
Bailee to take reasonable care of goods bailed to him.
Bailee has particular lien over the things bailed to him.
Pledge defined
Statutory notice of sale to be given to the pledgor before sale of goods
when he defaults to pay.
Agent and Principal defined
No consideration required for Agency
An agent cannot delegate his authority
Death/insolvency, insanity of the debtor terminates Agency.
Agency coupled with interest (Agency not terminated by death)
RBI ACT, 1934:

SECTION
28 & 58
(2)
31
42(1)
45
49
58 (B)
DEALS WITH / TOPIC

Note Refund Rules has been framed
Demand draft payable to bearer cannot be issued.
CRR to be maintained
SBI/Associate of SBI/Nationalised Banks to conduct Government
Business as an agent of RBI.
Bank Rate
Penalty for issuing a bearer draft.
SBI ACT, 1955:

SECTION
32
34 1 (B)
39
DEALS WITH / TOPIC

SBI to conduct Government Business as agent of RBI
No lending against own shares.
Preparation of Balance sheet as on 31st.
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44
49
58 (B)
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Fidelity & Secrecy to be executed by all employees.

Bank Rate
Penalty for issuing a bearer draft.
Transfer of Property Act.

SECTION
3
58 (a)
58 (f)
100
105
DEALS WITH / TOPIC

Definition of Actionable claim
Definition of Mortgage
Definition of Equitable Mortgage
Charge on Immovable Property
Lease defined
Stamp Act:
3
No duty is chargeable on the instruments by or in favour of
Government.
8A
Securities dealt in depository not liable for stamp duty.
12
Where duty is paid by way of adhesive stamps, adhesive stamps to be
cancelled and where it is not cancelled the document would be deemed
to be unstamped. Cancellation can be by way of signatures across or
crossing in such a manner that it could not be used again.
14
On a stamped paper only one instrument is to be written.
17
Stamping before or at the time of execution.
18
Instruments executed outside India to be stamped within 3 months of
first receipt in India.
29
Stamp duty is payable by persons drawing/making/executing such
documents.
31
Collector is to decide whether proper stamp duty has been paid or not.
33
If a person finds that such document is not duly stamped he will
impound the same.
35
Instruments which are not duly stamped are inadmissible in evidence.
43
A person can be prosecuted for offence against stamp law even after
payment of penalty.
Limitation Act, 1963:
3
Application made to a competent court after the prescribed period shall
be dismissed.
4
If court is closed the suit may be instituted on the day when court
reopens.
5
If applicant satisfies court about not making the application, court can
admit the suit.
9
Once time has begun to run, no subsequent disability or inability to
institute a suit stops it.
12
Day from which limitation period is reckoned , to be excluded.
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Period of injunction by other court to be excluded for calculation of

limitation period.
Acknowledgement before expiration of prescribed period gives fresh
period of limitation.
Payment by the debtor / his agent before expiration of prescribed
period, provides fresh period.
18
19
UCPDC (UNIFORM CUSTOMS AND PRACTICES ON DOCUMENTARY

CREDITS):
(International chamber of commerce (ICC)s publication ICC 600 revised
w.e.f. 01.07.2007):
Major changes as per ICC 600:
No. of Articles is reduced from 49 to 39

All L/Cs shall now be treated as irrevocable.
Time allowed for scrutiny of documents by Banks is reduced from 7
Banking days to 5 Banking days.
ARTICLE
5
7
8
9
13
14
15
16
20
31
36
38
DEALS WITH / TOPIC

Banks deal with Documents only, not Goods.
Issuing Banks undertaking- Irrevocable
Confirming Banks undertaking
Advising Credit Amendments
Bank to Bank reimbursement
Standard time for scrutiny of documents
Complying presentation
Discrepant documents waiver etc.
Bill of Lading
Partial Drawings/Partial shipments
Defines Force Majeure
Transferable L/C.
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IMPORTANT LEGAL TERMINOLOGY

(Extracted by G.Venkateswara Rao, Manager Training)
Ab initio: (Latin) from the beginning.
Acceptance: One of three requirements for a valid contract under common law (the
other two being offer and consideration). A contract does not become legally binding
until one party has made an offer and the other party indicates his readiness to
accept the terms of the offer. Acceptance must be unconditionally communicated to
the offeror while the offer is still open. Acceptance of an offer can, in certain
circumstances, be implied by conduct.
Accord and Satisfaction: A contract may be discharged if one party, who has
complied with his part of the contract, accepts compensation from the other party
instead of enforcing the contract. The accord is the agreement by which the
obligation is discharged. The satisfaction is the consideration (usually money and of
a lesser value) which makes the agreement operative.
Act of God: An event resulting from natural causes, without human intervention
(such as floods or earthquakes). Insurance policies often exclude acts of God.
Administrator: A person appointed to manage the property of another (such as
the administrator of the estate of someone who has died without leaving a will).
Affidavit: Sworn written statement signed by a deponent, who swears that its
contents are true to the best of his knowledge and belief. It must be witnessed by a
practicing solicitor or commissioner for oaths.
Agent: Person with power to contract on behalf of others, binding them as if they
were signing the contract themselves. The person represented by the agent is called
the principal.
Antedate: To date retroactively, before a document was drawn up.
Assign: To give or transfer responsibility to another person. The person who
receives the right or property is the assignee; the assignor is the person giving.
Audi alteram partem: (Latin: hear the other side) A principle of natural justice
which requires that, where a decision may affect an individual's rights, that person
has a right to be heard. It includes the right to receive notice of a hearing and to be
legally
represented.
Bailee: Person who accepts property through a contract of bailment, from the bailor,
and who has certain duties of care while the property remains in his possession.
Bailment: Temporary transfer of goods by a bailor to a bailee (for example, for
storage), after which the property is either returned to the bailor or disposed of
according to the contract of bailment.
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Beneficiary: Person who receives a gift under a will, or for whose benefit property
is held by an executor or trustee.
Bill of exchange: Written, signed instrument requiring the person to whom it is
addressed to pay on demand (or on a future date) a fixed amount of money either
to the person identified as payee or to anyone presenting the bill of exchange. A
cheque is a form of bill of exchange.
Bill of lading: Document used in foreign trade, acknowledging that a company has
received goods for transportation. The Bill serves as title to the goods until they
have reached their destination.
Breach of contract: Failure or refusal to fulfil a term of a contract. The injured
party may bring an action for damages, for enforcement or for cancellation of the
agreement.
Burden of proof: A rule of evidence that requires a party to a court action to prove
something, otherwise the contrary will be assumed by the court. For example, in
criminal trials, the prosecution has the burden of proving the accused guilty beyond
a reasonable doubt (because of the presumption of innocence).
Caveat: (Latin: let him beware.) A formal warning. Caveat emptor (let the buyer
beware) is a warning to buyers to check for themselves things which they intend to
buy, so they cannot later hold the vendor responsible for the faulty condition of the
item.
Charge: Form of security for payment of a debt.
Clayton's Case: This English case established a presumption that money
withdrawn from an account is presumed to be debited against the money first
deposited (first in, first out).
Codicil: Written amendment or addition to an existing will.
Collateral: Property committed to guarantee a loan.
Collusion: Illegal and usually secret agreement between two or more people to
deceive a court or defraud another person.
Consideration: Consideration has been defined as "some right, interest, profit or
benefit accruing to the one party, or some forbearance, detriment, loss or
responsibility given, suffered or undertaken by the other". Under common law, any
binding contract must have some consideration, no matter how small. The courts will
not normally inquire into the sufficiency of the consideration; a "peppercorn rent"
would be sufficient.
Consign: To leave property in the custody of another. An item can be consigned to
a transport company, for example, to move it from one place to another. The
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consignee is the person who receives the property and the consignor is the person
who ships the property to the consignee.
Contempt: Deliberate disregard of a court order.
Contract: Agreement between two or more persons which obliges each party to do
(or refrain from doing) a certain thing. A valid contract requires an offer, acceptance
of that offer and consideration.
Contract law: Contract law is the basis of all commercial dealings. The terms of a
contract may be express or implied. Express provisions may be varied by statute.
Unfair contract terms are now excluded by legislation, and, in areas such as
employment and the sale of goods, the law imports a wide range of implied terms
into new and existing contracts.
Covenant: Written document in which signatories either commit themselves to do
(or not to do) something, or in which they agree on a certain set of facts. Covenants
are very common in leases where a landlord will usually covenant to give the tenant
"quiet enjoyment" and the tenant covenants to pay the rent, keep the premises in
good repair and deliver them up at the end of the tenancy.
Creditor: Person to whom money, goods or services are owed by a debtor.
De facto: (Latin: in fact) Something which exists in fact, though not necessarily
approved by law (de jure). A common law spouse may be referred to as a de facto
spouse, although not legally married.
Debtor: Person who owes money, goods or services to a creditor. If a court
judgment has been registered against the person owing the money, he is known as
a judgment debtor.
Deed: Written and signed document which sets out the agreement of the
signatories in relation to its contents.
Deponent: Person who swears an affidavit or deposition.
Descendant: Persons born of, or from children of, another. Grandchildren are
descendants of their grandparents, as children are descendants of their natural
parents. The law distinguishes between collateral descendants, such as nephews and
nieces, and lineal descendants, such as sons and daughters.
Donee: Beneficiary of a trust or person given a power of appointment.
Donor: Person who gives property for the benefit of another, usually through a
trust. Sometimes referred to as a "settlor." Also used to describe the person who
signs a power of attorney.
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Duress: Threats or force preventing - or forcing - a person to act other than in

accordance with free will. A contract signed under duress is voidable at the option of
the person forced to sign it. Duress may invalidate a marriage.
Easement: A right over a neighbour's land or waterway. An easement is a type of
servitude. For every easement, there is a dominant and a servient tenement, or
piece of land . Rights-of-way are the most common easements, but others include
the right to tunnel under another's land, to emit smoke or fumes, to access a dock
and to use a well. An easement that is not used for a long time may be lost.
Estoppel: Rule of evidence which prevents a person from relying on facts when, by
deed, word or action, he has led another person to act to his detriment on those
facts. Estoppel is a defence, not a cause of action. Anyone who wishes to rely on the
defence of estoppel to defend an action must plead it.
Executor: Person appointed by a testator to administer a will. The executor is a
personal representative whose duties include burying the dead, proving the will,
collecting in the estate, paying any due debts and distributing the balance according
to the wishes of the deceased.
Fiduciary: Person (such as a trustee, company director or executor) who exercises
rights and powers for the benefit of another person, but without being under the
control of that person. A fiduciary must not allow any conflict of interest to affect his
duties and would not normally be allowed to profit from his position.
Garnishee: Person who owes a third party a debt which is attached by court order
for the benefit of a judgment creditor.
Goodwill: Intangible business asset based on the good reputation of a business and
resulting attraction and confidence of repeat customers and connections. Part of the
sale price of a business may be for goodwill, in which case the seller may not solicit
former customers for his new business.
Gross negligence: Act or omission in reckless disregard of the consequences for
the safety or property of another; more than simple carelessness or neglect. Gross
negligence by an employee may justify summary dismissal.
Guarantor: Person who pledges collateral for another's contract.
Injunction: Court order that forbids a party to do something (prohibitory
injunction) or compels him to do something (mandatory injunction). It may be
enforced by committal to prison for contempt.
Insolvent: Person not able to pay his debts as they become due. Insolvency is a
prerequisite for bankruptcy.
Intestate: Person who dies without making a valid will.
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Joint and several liability: Liability of more than one person, under which each may
be sued for the entire amount of damages due by all. The obligation may arise by
agreement or may be imposed by law.
Kin: Relationship by blood.
Lease: Contract between a property owner and another person for temporary use
of property, in exchange for rent.
Liability: Any legal obligation or duty, now or in the future. A person who is liable
for a debt or wrongful act is the person responsible for paying the debt or
compensating for the wrongful act. If a court finds a person to be contributorily
liable, he will bear part of the responsibility for the act or omission.
License: Permission to do something on or with someone else's property which, if it
were not for the licence, could be legally prevented or could give rise to an action in
tort or trespass. A common example is allowing a person to cross the licensor's
lands, which would otherwise constitute trespass. Licences, unlike easements, may
be revoked at will, unless supported by some form of payment or consideration.
Licences which are not based on a contract and which are fully revocable are called
simple or bare licences.
Lien: Right to hold property which has been sold, but not finally paid for. It may
involve possession of the object until the debt is paid or the lien may be registered
against the object (especially land). Ultimately, a lien can be enforced by a court sale
of the property to which it is attached, and the debt is paid out of the proceeds of
sale.
Mandamus: (Latin: we command) High Court order commanding an individual,
organisation, administrative tribunal or court to perform a certain action - usually to
correct an earlier illegal action or failure to fulfil some statutory duty.
Minor: Person under the age of 18 in case the guardian not appointed by court.
Mortgage: An interest given on land, in writing, to guarantee the payment of a
debt or the execution of some action. It automatically becomes void when the debt
is paid or the action is executed. The person lending the money and receiving the
mortgage is called the
Mortgagee; the person who concedes a mortgage as security upon his property is
called a mortgagor. The three types of mortgage are a legal mortgage (involving a
transfer of the legal interest in the property), an equitable mortgage (by depositing
the title deeds) and a judgment mortgage (following a court judgment).
Mutatis Mutandis: The necessary Changes. This is a Latin phrase of frequent
practical occurence, meaning that matters or things are generally the same, practical
occurence, meaning that matters or things are generally the same, but to be
altered, when necessary, as to names, offices, and like.
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Natural person: Human being with legal and Constitutional rights and duties,
including the right to life, right to information, right to travel, right to a good name,
right to earn a living, right to sue and be sued, to sign contracts, to receive gifts and
to appear in court either by himself or through a lawyer. Individuals are persons in
law unless they are minors or under some other type of incapacity, such as a court
finding of mental incapacity. Contrast with a company, which is a legal person.
Negligence: Carelessness. A person who owes a duty of care to someone else and
breaches it by lack of reasonable care may be liable in damages for negligence. The
negligence may involve a positive deed or a failure to act. If no damage results,
there can be no action. The standard of care required is usually that of the
reasonable man, but a person who claims to have special skills (such as a surgeon)
owes a higher duty of care.
Pari passu: (Latin: with equal step) Often used in bankruptcy proceedings
where creditors are said to rank pari passu, which means the assets are distributed
without preference between them.
Partition: Division of jointly-owned land or property between the respective
owners.
Payee: Person to whom a bill of exchange is made payable. On an ordinary cheque,
the name preceded by the words "pay to the order of" identifies the payee.
Perpetuity: Forever, of unlimited duration.
Power of attorney: Document under seal which gives a person the right to make
binding decisions for another, as an agent. A power of attorney may be specific to a
certain kind of decision or general, in which the agent makes all major decisions for
the subject of the power of attorney.
Principal: Person from whom an agent has received instructions and for whose
benefit the agent acts and makes decisions. The principal has a duty to pay the
agent any agreed sum or commission, and to indemnify him against any losses in
the course of his agency.
Quid pro quo: (Latin: something for something) Giving something in exchange for
something else. As consideration, it is an essential ingredient of a valid contract.
Silent partner: Person who invests in a company or partnership, shares in the
profits or losses but takes no part in administering or directing the organisation.
Surety: Person who has pledged himself by deed to ensure that another person
fulfils an obligation - such as appearing in court or paying back a loan.
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Tenant: Person to whom a landlord grants temporary and exclusive use of land or a
building, usually in exchange for rent. The contract for this type of legal
arrangement is called a lease.
Testator: Person who dies after making a valid will.
Testimony: Verbal presentation of evidence in court.
Transferee: Person who receives property being transferred.
Transferor: Person who transfers property.
Ultra vires: (Latin: beyond the powers) An action which is invalid because it
exceeds the authority of the person or organisation which performs it. A company
cannot normally be bound by an act which it is not empowered to do by its
memorandum of association.
Undertaking: Enforceable promise given to court.
Undue influence: Unfair pressure which may invalidate a contract.
Usury: Excessive or illegal interest rate.
Vicarious liability: Responsibility for the tort of another, even though the person
held responsible may not have done anything wrong. This is often the case with
employers who may be held vicariously liable for damage caused by their
employees.
Void: Without legal effect. A document that is void is worthless. An anti-competitive
agreement or contract in restraint of trade may be void. A "marriage" involving a
person under the age of 18 would be void.
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RATIONALES
IMPORTANT NOTE TO TRAINEE OFFICER ASPIRANTS

Even though the RATIONALES are not forming a part of the TO
examination in the revised format, reading and understanding them
is very essential as
It enables you to understand why a particular instruction is issued by
the Bank on a specific subject/issue so that informed decisions can
be taken when you assume responsibility as Officer
The content in the question as well as answer will help you
answering the 70% part of the (Section I) question paper.
There are already numerous instructions available on various topics
in the form of Book of instructions. Many more are adding regularly
in the form of e circulars. In order to shape up your self as a future
officer reading and understanding these rationales are very
necessary.
Therefore .. ..
DO NOT IGNORE THIS SECTION.
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RATIONALE BASED ON E CIRCULARS

Compilation by : P.Rajendra Prasad, AGM (Trg)
1.
It has now been decided to withdraw the instruction for obtaining

undated and pre-signed cheques where mandate for repayment of
home loan through ECS/S.I. is obtained (e circular no 1074/20112012 dt.07.03.2012)
Section 25 of the Payment and Settlement System Act, 2007 provides
punishment for dishonor of electronic funds transfer on account of
insufficient funds etc.
The provisions of Section 25 of the said Act are similar to Sections 138,
139, 140 & 146 of the Negotiable Instrument Act dealing with dishonor
of cheques and provide punishment for the said offence.
As such there is no need to obtain undated and pre signed cheques
2. Two new clauses, clause 34 and clause 35 are added in BMMC
Form 16 confirming data integrity in CBS
( e circular no
1075/2011-2012 dt.07.03.2012)
To ensure data integrity and to put a proper system in place for
periodical verification of correctness of input in CBS.
3. Bank has decided to introduce with effect from 01.02.2012
uniform MCC issue charges @ Rs.2/- per leaf and also no MCC
payment charges for all customers cutting across all Business
Units/Groups in Current Account, Savings Bank and Cash Credit ( e
circular no 955/2011-2012 dt.31.01.2012)
This facility is already available to PBBU customers, which led to greater
use of MCC amongst PBBU customers.
This facility is extended to all customers to encourage greater use of
MCC by all customers of the Bank
4. 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. ( e circular no 874/20112012 dt.03.01.2012)
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 30
percent of the paid up share capital of that company or 30percent of its
own paid up share capital and reserves, whichever is less.
In order to ensure such compliance, prior administrative clearance
should be obtained
5. It has been decided by the Bank to use the services of Speed Post
of Indian Post for despatch of letters ( e circular 986/2011-12 dt
11.02.2012)
To fall in line with provisions of the Indian Post Office Act,1898. As per
section 4 of the said Act, it is the exclusive privilege of Department of
Posts of conveying letters and receiving, collecting, dispatching and
delivering letters by post from one place to other and any contravention
is punishable with fine.
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6.
7.
8.
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The service of speed post has also improved considerably and there is
guarantee of delivery within the stipulated time lines with facilitation of
online tracking of delivery.
All branches submitting claims to M/s New India Assurance co ltd,
under personal accident insurance for our car loan / Home loan
borrowers will have to open one current (office) account with the
name Group Insurance Home Loan/Car Loan Claim Received
Account to which the claim amount will be remitted by NIA
through electronic fund transfer. ( e circular no 1008/2011-12
dt15.02.2012 )
As a part of e-governance, Insurance Companies have to effect payment
of insurance claims by direct credit to accounts of the deceased
However, there will be cases where the settled claim amount may
exceed the outstanding in the loan account at the time of settlement, as
terminal dues may have been credited before claim is settled. In such
cases system will not allow credit to loan accounts (Term Loans) as it
will result in credit balance in Term Loan accounts
To avoid reconciliation issues and also delay in getting claim from NIA,
the captioned account will be opened and the account no is advised in
the claim form.
It has been decided to raise the limit for foreign exchange
remittance towards imports without any documentation
formalities, from USD 500 or its equivalent to USD 5000 or its
equivalent ( e circular no 1049/2011-12 dt 29.02.2012 )
Based on suggestions received from the various stake holders, the said
limit has been reviewed by RBI
as a measure of liberalization
A new facility to upload blood group of employees is rolled out in
HRMS ( e-Circular No. 773/2011-12 dt. 30-11-2011)
As a part of the Banks Staff Welfare as well as Community Services
initiative
Availability of Blood Group data of employees in database would help in
finding blood donors in case a need for blood arises for any other staff
member in the vicinity or the family members of staff or of members of
society
The availability of this data will be useful in knowing the blood group of
any employee who himself/herself unfortunately requires such help,
especially in case of emergency when there is an urgency.
It has been decided by RBI that AD Banks may be permitted to
accept FCNR(B) deposit in any permitted currency. (e circular no
726/2011-12 dt 16.11.2011)
The liberalization by RBI will give flexibility to our NRI customers to
keep their FCNR(B) deposits in the currency of their choice to avoid
conversion cost.
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10. The "State Bank of India Compensation Policy (Banking

Services)", has been formulated (e-circular No.721/2011-12 dt
14.11.2011)
To establish a system whereby the Bank compensates the customer due
to deficiency in service on the part of the Bank or any act of omission or
commission, directly attributable to the Bank.
11. Demand drafts of Rs.20,000/- and above are issued invariably
with account payee crossing with immediate effect. (e circular no
712/2011-12 dt 09.11.2011)
To address the regulatory concerns
To obviate the possibility of using demand drafts without any crossing
for transfer of money as alternative to settlement through cash by some
unscrupulous elements
12. Validity period for Cheques/Drafts/Bankers Cheques/Pay
Orders/IOIs has been reduced from six months to three months
by RBI effective from 01.04.2012 (e circular no 711/2011-12 dt
09.11.2011)
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/bankers 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.
13. Take over norms is made more stringent by the Bank (e circular no
710/2011-12 dt 08.11.2011)
To address the concerns of Central Vigilance Commissioner and RBI, like
i)Problem Accounts get taken over as the transferor bank does not
provide true and vital information about the account when called for.
ii) Unscrupulous borrowers often take advantage of the competition
amongst banks and the irregularities committed at the transferor bank
with respect to sanction, disbursement and monitoring of account goes
unexamined in the process.
14. An Electronic waste ( e-waste) management policy has been
formulated by the Bank (e circular no 699/2011-12 dt 04.11.2011)
In order 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)
15. A prudent Banker should endeavor to obtain Gold, NSCs and KVPs
as collaterals, wherever feasible, while processing Advances
proposals (e circular no 787/2011-12 dt 03.12.2011)
Obtaining Gold, NSCs & KVPs as financial collaterals enables the Bank to
reduce the exposure by the amount of the collateral while calculating
capital requirements.
This helps significant capital savings
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16. Controllers must visit branches at stipulated intervals ( e circular

no 658 /2011-12 dt.21.10.2011)
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
17. Optimal use of Credit information companies (CIC) is the need of
the hour ( e circular no 656 /2011-12 dt.20.10.2011)
Bank is required to use the information in a judicious manner which
ensures mitigation of credit risk in a cost effective way.
Working in a multi bureau environment may result in a rise in operational
expenses during the short run, which is proposed to be offset by the
efficient use of information
18. Bank has decided to subscribe to multiple bureaus for credit
information on prospective borrowers for certain advances ( e
circular no 656 /2011-12 dt.20.10.2011)
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
Compiled by Shri L.J.Meclarin, Chief Manager (Training)
19.
20.
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.
(e- circular No.640/2011-12 dated 18.10.2011)
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
An Unconditional Cancellability Clause has been introduced in the
loan documents ( e circular No.621/2011-12 dated 12.10.2011)
This is as per RBI guidelines in compliance with New Capital Adequacy
Framework of Basel-II
Borrowal accounts complying with the unconditional cancellability clause
would attract zero percent Credit Conversion Factor (CCF) on the portion
of the undrawn commitment
The Bank need not have to provide additional capital on such undrawn
portion of credit limits.
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21.
22.
23.
24.
25.
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Multiple Demand Loans against the same TDR/STDR can now be

permitted. ( e circular No.619/2011-12 dated 11.10.2011)
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.
In all cases of loan proposals received from the employees of a
company/firm/organizations, the status of the employees should
be got confirmed from the concerned company/firm/organization
by stringent application of KYC norms. (e circular No.618/2011-12
dated 11.10.2011)
To comply with RBI guidelines with regard to Risk Management
mechanism
Incidence of frauds in Personal Segment loans especially Home Loan
portfolio has increased in the recent past
In order to obviate the possibility of incidence of frauds.
The branches/SMECCCs now permitted to grant extension in
repayment period for all term loan accounts with limits up to Rs.
100 lacs, if covered under CGTMSE Scheme. (e-circular No.594/
2011-12 dated 01.10.2011)
Consequent upon persisting inflationary conditions, the input costs and
interest rates are on increasing trend, the viability of micro and small
units who operate on thin margin and low capital base, may got affected.
There is a probability of default in payment of term loan installments by
such small enterprises, which are facing pressure on cash accruals under
the current unfavorable market conditions.
In order to mitigate negative impact on cash accruals of Micro and Small
Enterprises.
Branches have been advised to go for Up-selling of Two Wheeler
Loans to Car Loan customers ( Cir No NBG/PBU/AL/27/2011-12 dt
10.10.11)
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.
It has been decided to have a provision of issuance of emergency
cheque books at branches (Cir No NBG/PBU/LIMA/20/2011-12 Dt
31.10.11)
Some times, important customers who require a cheque book urgently
across the counter face inconvenience.
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26.
27.
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The process of getting personalized cheque books printed and issued by

LCPC is time consuming.
Those customers, especially NRI customers, who are pressed for time
will be issued Multicity cheque books containing 20 leaves only to meet
their emergency requirements.
Branches/CPCs are required to ensure entering correct
Disbursement Schedule in all new Home Loan Accounts especially
where disbursement schedule is spread over beyond one year. ( Cir
No NBG/PBU/HL/43/2011-12 Dt.17.10.11)
According to New Capital Adequacy Framework Norms, Banks need not
provide capital on that part of the term loan limit, which is not scheduled
for disbursement during a particular year.
Non- entering of correct disbursement schedule at the time of opening of
Home Loan accounts will result in the Bank having to make unnecessary
capital allocation on the portion of such limits, which are not due for
disbursement.
Now change of account number is permitted while regularization of
Recalled Assets accounts of Home Loans (Cir No.NBG/PBU/HL/42/
2011-12 Dt 17.10.11)
The CBS system does not permit these accounts to be upgraded to
Standard Account even if the borrower regularizes the account by paying
the full irregular amount.
The only course available in such accounts is to close the Recalled Assets
Account and re-open new Home Loan account with new number with the
outstandings due.
The Law Department of the Bank is of the view that there is no legal
problem/risk or complication in opening of such accounts with new
number.
Compiled by Shri T.V.N.B.Raju, Chief Manager (Training)

28. Unfixed fixed Deposit scheme has been introduced.
In order to attract / mobilize big ticket (high value) bulk deposits and
also to provide the depositor enough liquidity.
To ensure against Sparse liquidity
The cost of mobilization is cheap.
29. Charges for non maintenance of Minimum Balance (QAB) in
Savings Bank account have been removed.
As a major step forward towards Customer retention and acquisition.
This waiver will be a strong selling point for our Savings Bank product
and the customer can be induced to avail our other products, besides
cross selling of the products of our subsidiaries.
In order to be competitive in mobilizing SB accounts and thereby CASA.
30. A new Website called Currency Chest-online has been launched.
To facilitate online monitoring of 2194 currency chests maintained by us.
To update the profile of currency chests like Chest Balance Limit (CBL),
No. of Bank guards posted, details of Note Sorting machines, security
equipments installed, average daily cash receipt/payments etc.
To monitor periodical verifications of currency chests and rectification of
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31.
32.
33.
34.
35.
36.
37.
SBLC, MASULIPATNAM
irregularities pointed out during verifications.

To avoid penalties levied by RBI etc.
Certain clauses like Cancellability clause, CIBIL Clause are to be
appended to Main Loan documents in C-series documents.
C-series documents have been introduced in the year 1985 and some
important clauses which are made by us subsequently donot find place in
these documents.
To ensure that these important clauses like Cancellability clause, CIBIL
Clause, End use of funds, Wilful default are appended to Main Loan
Document.
To protect the Banks interest.
It has been decided to mail statements to all our Current Account
customers at the addresses recorded in the CBS.
In order to have a system in place wherein Current account statements
are regularly mailed to all current account customers, even without their
demand.
This will facilitate the customer to take up with their Home Branch for
omissions & commissions if any.
An initiative towards customer delight and customer orientation.
Passbook is not provided for the Current accounts and hence account
statement is very important for the account holder.
Current Distribution List & Negative List of Mutual Funds is now
advised to Branches every month.
To ensure that equity schemes of good performance are only sold by the
Branches.
To caution the Branches with the Negative List in which schemes with
dissatisfactory performance are listed out.
Fair Banking Practice.
Customers invest their hard earned money and the interests of the
customer must always be safeguarded.
Payment of penal interest for delayed credit/refunds of NEFT
transactions has been introduced.
To enhance the customer service and efficiency parameters of the
system in view of large scale growth in the electronic payment
transactions.
To ensure efficient functioning of customer facilitation centres/Branches.
Cash Flow is analysed while assessing the Credit.
Cash Flow statement is an important tool to find out whether the
estimated cash or its equivalent are generated.
It also reflects the movements of funds as well.
To enhance the credit quality.
It has been decided to incorporate Internal ratings (CRA) of the
Corporate Guarantor also in the credit proposals.
Internal rating of the Corporate Guarantor has distinctive positive impact
of reduced risk weight applicable, in cases where such rating of the
guarantor is better than that of the borrower.
It will result in savings in IRB (Internal Ratings Based) Capital.
Interest Rates on NRE fixed deposits have been deregulated.
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38.
39.
40.
41.
42.
43.
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To give them par treatment with domestic deposits so far as Interest rate
is concerned.
The move will help mobilizing more and more NRE deposits, as these
deposits are normally stable in nature & help improve forex reserves .
RBI guidelines.
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.
A new variant of POWER JYOTI i.e. Power Jyoti- PUL (Pre Upload)
is introduced.
To address certain inadequacies of MIS data like :
a) Acceptance of fees/contributions without entering the required details.
b) Capturing incorrect values in the key field of Reference number.
c) Fee bifurcation details not captured/captured incorrectly.
d) New version with pre uploaded/pre-populated module is introduced
Sanction and disbursement of SBI Scholar loan has been delinked
from CPCs.
The existing process of sanction and disbursement by CPCs involves a
lot of time and requires co-ordination and defeats the purpose of
sanctioning the loan to students of premier institutes within a specified
time limit.
Campus / Designated branches are sometimes losing out on high value
Education Loan business.
Monthly Declaration in respect of premium paid must be submitted
to ECGC regularly.
The Mere payment of premium without the Monthly Declaration does not
hold good for ECGC Guarantee Cover.
To ensure Risk Mitigation in case of Export Finance.
To address Capital Concerns of the Bank.
Advantage Plus (Secured Plus) Card has been launched by SBI
Cards Pan India.
It is the first of its kind in the industry and a winning proposition for the
who could not earlier obtain a Credit Card.
To create potential relationship with the young group of aspirers
who will be more loyal than others.
To grab Credit business from BPO employees, employees of reputed
SMEs, Low income staff in CSPs etc.
To penetrate more into Credit card business
A special campaign SME Bonanza has been launched.
To ramp up credit flow to Micro and Small Enterprises with CGTMSE
guarantee Coverage.
In order to achieve minimum 20% annual growth in MSE portfolio of the
bank and to give thrust to broad base our MSE portfolio by acquisition of
new MSE customers.
Weavers Credit Card scheme introduced.
To provide hassles free Loans upto Rs. 2 Lacs to Weavers and ancillary
workers involved in weaving activities in the handloom sector.
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To pass on the benefits extended by Government of India like Margin

money upto Rs.4200/- per weaver and Interest subsidy upto 3% on
Bank Loans.
Government of India Guidelines.
Compiled by Shri G.Venkateswara Rao, Manager (Training)
(BASED ON CIRCULAR INSTRCUTIONS OF MAY TO JULY, 2011)
45.
46.
47.
48.
49.
50.
CERSAI has been introduced by government of India.

For the purpose of registration of all security interest over property,
transactions of securitization and asset reconstruction and to enable
enforcement of SARFAESI Act provisions in a better and stringent way.
The monetary limit for 1% interest subvention for Housing Loans
has been enhanced in the union finance budget for 2011-12.
In view of the hike in steel and cement prices, the estimated cost of
housing has gone up. Hence the monetary ceilings were enhanced from a
Housing Loan limit of Rs.10 lakhs to Rs.15 lakhs and the cost of the house
from Rs.20 lakhs to Rs.25 lakhs.
Recently our Bank has enhanced the PAI (Personal Accident
Insurance) cover for various types of our debit cards. (Circular
No.NBG/PB/C&ITU-DSP/3/2011-12 dated 11.05.2011)
This was done to make our packages/ cards more attractive as many
Private as well as Public Sector Banks had started to increase the PAI
covers offered by them
Non-P segment customers are allowed to Mobile Banking Services
(MBS). (Cir.No.CS&NB/CS&NB-M/5/2011-12 dated 14.05.2011)
With a view to broad base the Service and to enable customers from other
segments also to avail certain features of the Service, it has been decided
to enable customers from non P segment also for MBS.
The limit under SBI Krishak Uthaan Yojana has been enhanced form
Rs.50,000/to
Rs.100,000/(Circular
No.NBG/ABU/PDMKUY/5/2011-12 dated 24.05.2011)
Based on representations, seeking enhancement of limits in
margin/security requirements, RBI has waived margin/security
requirements for all agricultural loans up to Rs.1,00,000/- and later this
was also made applicable to the tenant farmers, share croppers and oral
lessees. Keeping in view the RBI instructions and in compliance thereof,
the limit has been enhanced by our bank.
GRIH SANTHOSH, a new product has been launched by the bank.
(Circular No. CB/FIBU-HSO/2/2011-12 dated 18.05.2011)
With rapid urbanization spreading fast to Tier -I Tier-II and Tier-III cities,
there is spurt in the number of Housing Societies/Associations. These
Societies/Associations keep the major chunk of their funds in fixed
deposits with Banks and also hold a sizeable surplus in Savings/Current
accounts to take care of their routine maintenance expenses and are a
potential source of CASA deposits for the bank.
With a view to capture the potential business opportunities and target
accounts from Housing Societies/Associations in a big way.
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Fidelity Insurance to be arranged for all Probationary officers and

Trainee Officers. (Circular No.NBG/S&P-PASSING POWE/2/201112 dated 21.05.2011)
All Probationary and Trainee Officers are to handle cash and transfer
transactions from the 4th month of their on the job training. Hence Fidelity
insurance to be arranged for counters manned by POs/TOs in addition to
existing single window counters.
Banks have to be extra careful in compliance of KYC / AMC norms
for Multilevel Marketing Firms.
RBI has advised that bank/s will be held responsible for losses incurred by
customers by way of deposits in / remittances from such accounts if they
are found to be in violation of regulations KYC/AML and/or regulatory /
statutory requirements. Branches are, therefore be extra careful and may
also improve their existing KYC/AML drill and transaction sanctity to
examine the business practices of prospective customers so as to ensure
that no unauthorized/illegal activity is being carried out. ( Circular No. :
NBG/BOD-KYC/12/2011 12 dated Friday,June 03,2011.)
SBI has removed charges on non-home payment of Personal
segment loans.
Such non-home charges have been an additional burden to the borrower
and also discourages him from making the payment from the place of his
convenience. Hence such charges are dispensed with.
(Circular No : NBG/PBU/HL-HOME LOANS/18/2011 12 dt. June 10, 2011)
Compiled by Team SBLC - Based on e-Circulars from September, 2010 to

December, 2010
54. In case of loans against Banks own TDR/STDR, a mandate from the
borrower authorizing the Bank to credit the interest earned on the
TDR/STDR in the loan account instead of to the deposit account till
the loan is liquidated is obtained
In order to keep the value of security against Banks own Time Deposit
higher than the outstanding in the loan account
55. SBI YUVA Home loan product launched
Migration of young job seekers to the centres of economic growth and
consequent nuclearization of families has brought down the age of the
property buyers to 30-35.
Since the properties are being purchased at a young age, the gap
between the available funds and the property prices is wide.
To bridge this gap with SBI Home Loan it has been decided to launch an
exclusive new product named SBI Yuva Home Loan
56. Bank has stopped opening of back dated Recurring Deposit a/cs.
Interest is calculated on full maturity amount for this additional,
backdated period by the system and manual actions are required to be
performed by the user to rectify the interest accrual part after opening
such backdated RD account.
user failure to follow workaround provided in the application, may result
into excess interest provision on monthly/quarterly basis.
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57. In terms of RBI Guidelines dated 1st July 2010 on Basel II, an
Unconditional Cancellability Clause is to be introduced in the loan
documents
RBI instructions contained in the New Capital Adequacy Framework
provide that the borrowal accounts complying with the unconditional
cancellability clause would attract zero per cent Credit Conversion Factor
on the portion of the undrawn commitment which is defined as
Sanctioned Limit less Outstanding both for fund and non fund based
limits. This has a bearing on provision of capital.
58. Under Certified Pre-Owned Car Loan Scheme, a stamped indemnity
will have to be obtained on the letterhead of the Dealer of Certified
Pre-Owned Car
To protect the Bank in case of any ownership issues being raised by the
original owner of the vehicle, as the payment is directly made to the
dealer.
59. It has been decided to withdraw OD facility under gold loans
Gold loan ODs are not being renewed / reviewed at stipulated periodicity
resulting in technical NPAs
60. An interdiction solution for scanning all out-going SWIFT messages
to US and NASSAU is being integrated to the Gateway of existing
SIM-SIG Solution at GMU, Kolkata
This helps to check US-OFAC violations by our Branches.
Messages not containing any reference to Banned Entity list/sanctioned
countries or messages not bound for US/Nassau will have the status
OFAC CLEAN.
In case the message contains any reference to any banned entity/
sanctioned countries, the message will not be sent to SOC and will be
withheld by the OFAC filter with status, either OFAC SUSPECT or
OFAC BLOCK depending on the degree of match.
61. The collateral security requirement for crop loans revised to the
borrowers with good track record up to 2 lacs
To recognize the disciplined borrowers, such that it will have a positive
demonstrative effect on other borrowers
Lower delinquency is observed from this segment of borrowers
To achieve the 18% bench mark under priority sector lendings
62. Two new verticals namely Supply Chain Finance Unit(SCFU) under
SME BU, Corporate Centre and Transaction Banking Unit(TBU)
under Corporate Banking Group is created
To give adequate focus on financing the purchases of the Dealers
from the Industry Majors (IMs)
The SCFU will Market the schemes to reputed Industry Majors
and maintains Coordination with Relationship Managers in CAG,
MCG, NBG and officials of CINB for various related activities and
also handles IT and Operational issues
The TBU Identifies potential Industry Major from CAG/MCG and
advises to SCFU
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63. The
liberalized
SME-Collateral
Free
Loan
Scheme
with
concessionary rates of interest under CGTMSE cover was launched
by the Bank
To attract good borrowers and to ensure hassle free credit flow to Micro
& Small Enterprises
To achieve the benchmark 20% YoY growth in MSEs set by the Reserve
Bank of India and 60% sub target for Micro Enterprises in Micro & Small
(MSE) advances.
64. Centralisation of Service Tax has been done in the Bank
With a view to Plug income leakages caused by non availment/short
availment of CENVAT credit. and avoid erroneous double payment of
service tax on commission income distributed among various branch
offices such as commission received on Government business.
Ensure better compliance of the service tax regulations.
Reduce litigation and cost of compliance as most of the branches have
outsourced the services of Chartered Accountants/Advocates for working
out the service tax liability at monthly intervals and filing of half-yearly
returns.
65. In respect of opening of salary accounts of employees of corporates
and other entities, in addition to the certificate from employer,
branches should insist on at least one of the officially valid
documents as provided in the Prevention of Money Laundering
Rules.
with a view to containing the risk of fraud, branches need to rely on such
certification only from corporate and other entities of repute
These guidelines are issued under Section 35A of the Banking Regulation
Act, 1949 and Rule 7 of Prevention of Money-Laundering rules 2005
66. No cheque book should be issued to the Cash Credit accounts
opened under e-DFS scheme
The CC account would be a dedicated account for this purpose only. The
invoice amount is directly paid by the Bank to the industry major by
debiting the CC account of the dealer and on due date the dealer repays
the amount into his CC account and no other transactions are permitted
through this account. Hence no need of cheque book.
67. It has been decided by the Competent Authority to permit branch
heads(linked to SMECCC/RASMECC) to allow excess drawings
where necessary
The present arrangement of referring such requests to SMECCC/RASMECC
for their sanction is causing lot of inconvenience both to the customers as
well as the officials at the cell. The problem is more felt in case of
cheques under clearing.
In order to avoid customer dissatisfaction, the branch heads are also now
permitted to allow excess drawings on business considerations.
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General Banking (Compiled by Shri L.J.Meclarin)

68. A New Clause has been incorporated in Locker Agreement with
particular reference to un-operated lockers.
To enable the bank to go for break open of non operated lockers for one year
belonging to the High Risk category customers and 3 years for medium risk
category customer after giving a 15 days notice, even though the locker rent has
been paid regularly
69. All Locker keys to be embossed with identification code which could
indicate the Bank and Branch which has hired the locker.
To facilitate identification of Safe Deposit Locker on the basis of locker keys by
the Income-Tax and other investigating authorities.
70. Locks of surrendered lockers should be interchanged among the
surrendered lockers before allotting to a new hirer.
To ensure against any attempt by previous locker hirer to try to open/operate
the surrendered locker
71. Safe Deposit Lockers standing in the name of a deceased depositor
can be delivered only against production of a probate or a letter of
administration.
If all the legal heirs do not join in executing the indemnity or if there is a dispute
between them, the Bank can insist on suitable legal representation. Indian
Succession Act covers only debts & securities. It is not applicable to items kept
in lockers. However, in the states of UP & MP, succession certificate is
applicable to Safe deposit lockers also.
72. 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
73. Duplicate Draft below Rs 50000/- may be issued without sureties if
purchaser
is considered good for the amount involved & he is
maintaining satisfactory account .
To improve customer service by removing major irritant for the applicant in
completion of formalities viz. arranging two sureties on the stamped indemnity
74.
Indemnity is to be obtained for issuing duplicate draft.

It is possible that both original and duplicate drafts might have been negotiated
to the holders in due course in which case Bank is obliged to pay both the
original and the duplicate. So to protect the Banks interest, indemnity is taken
before issuing a duplicate draft.
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75.
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Payment of a Bank draft cannot be stopped.

Drafts are issued by one branch on another for value received. 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 payee for
the draft amount. Third parties might have got the title to the draft by
negotiation in which case Bank is bound to pay. Hence payment of draft cannot
be countermanded.
76. Interest has to be paid to customers on delayed collections of

instruments.
As per the directives of the RBI, based on the recommendations of the Goiporia
Committee on Customer Service in Banks. To compensate the customers for
delay in collection of instrument as per SBI Compensation Policy. To tone up the
efficiency of the banking system.
77. Government bonds, securities etc. that are accepted for safe custody
are recorded in the Safe custody register, Category-wise/ issue-wise.
To ensure that all scrips of the same series are sent for collection of interest,
redemption etc. at the appropriate time in appropriate lots without omission. As
a bailee the bank has to ensure that dividends etc. are collected promptly.
78.
Mobile Banking services were made
(Unstructured supplementary Services Data)
available
over
USSD
To facilitate the customers having non-java mobile phones to avail the service.
The advantage of using this mode of Mobile Banking Services is that the
customers need not download the mobile banking application and can avail the
facilities over a SMS session. RBI has restricted the daily transaction limit per
customer to Rs.1,000/-.
79. The Service charges for collection of Outstation Cheques have been
revised.
As per RBI guidelines issued under Payment & Settlement System Act 2007,
which is all inclusive plus the Service Tax. No P&T/Courrier charges should be
levied separately.
80. It has been decided to revise security features in other personalized
cheque leaves to bring them at par with Multi City Cheques .
To enrich security features in Cheque leaves for better public confidence. To
make them more secure in view of growing incidence of fake cheque related
frauds in the banking circles.
81. Branches are instructed to maintain proper record of the issuance of
Foreign Inward Remittance Certificates.
To streamline the issuance of Foreign Inward Remittance Certificates in respect
of transactions undertaken by IRC ( Inward Remittance Cell ). To guard against
issuance of Multiple FIRC by branches in respect of inward remittances
processed by Inward Remittance Cell.
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82. The wards of surrendered lockers are inter-changed before the

lockers are rented out again.
This precaution is taken to ensure against any attempt by the previous locker
holder to try to open/operate the surrendered locker.
83. When a locker is operated by a Power of Attorney holder, at the time
of closure, the original hirer of the locker must terminate the
agreement.
The power to operate an account cannot be construed to include the power to
close the account. This will eliminate avoidable contentions and claims and will
protect the customers interest.
84. A stamped agreement form is obtained from the customer opening a
locker.
This is the agreement of hire setting out the terms and conditions of the
contract. It specially provides that the Bank has a right of general lien over the
contents of the SDL and that in case of default in payment of rent, the Bank has
a right to deny access to the SDL.
85.
One locker is always kept vacant.

This will enable inter-changing of wards before letting out surrendered locker to
another hirer. This contingency will happen in case all the lockers are hired out
and one locker is surrendered.
86. Banks do not permit operations in safe deposit lockers before

commencement of business hours/after banking hours.
This is to avoid any liability on the part of the bank in the event of seizure of
lockers by Income Tax authorities as per section 132 of the IT Act. This will
avoid any allegations of collusion by the Bank authorities.
87.
Deposit is accepted now while opening a locker account.

This will ensure that the rent is recovered from the interest earned on the
deposit. RBI has advised that it is in order for the banks to demand adequate
deposits, interest on which will cover 3 years locker rent and charges for forcing
open the locker in an eventuality.
88. A separate letter is obtained from the locker hirer at the time of
surrender of the locker.
This is to ensure that the locker agreement has come to an end along with his
rights thereon and that he may not approach the bank again on the strength of
earlier agreement. To avoid contentions/claims in future. In our Bank, the
Locker Register has a provision to record the locker termination agreement and
the hirers signature is obtained thereon at the time of closure of the account.
89.
A copy of locker agreement should be given to the locker hirer.

This will serve as evidence that the hirer has understood the terms and
conditions of locker operations and also that in the event of non-operation of
locker for a specified period, the bank can break open the locker. The bank can
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also sell the contents in case of arrears of rentals. It adds to the transparency in
our dealing with customer. RBI directions based on recommendations of
CPPPAPS.
90. The Bank can break open a locker even if rent is paid regularly,
under specified circumstances.
Risk on locker service has increased significantly of late. A few cases of firearms
were found in lockers not operated for a long time. Hence, based on the risk
categorization of the accounts, different periods are prescribed for breaking
open lockers in case of non-operation.
91. Banking facilities including Lockers should be made available to
Visually Challenged persons.
Visually challenged persons cannot be denied of the facility of cheque book,
Locker and ATM on the possibility of risk in operating/using the said facility as
the risk is involved in the case of other customers as well. Banks as per orders
passed by the Honble Court of Chief Commissioner for persons with disabilities
and RBI Directives make such facilities available.
92. Locker keys should be embossed with Banks name and Branch Code
number.
This will facilitate the identification of Safe Deposit Locker on the basis of Locker
Keys and seized by Income Tax and other investigating authorities. As per RBI
directives.
93. Safe deposit articles are accepted from only those customers who
have been introduced and for whom KYC due diligence has been
carried out.
This is as per RBI directive.
persons, benami-holders etc.
With a view to avoid dealings with fictitious
94. Safe Deposit Articles and gold ornaments in a closed gold loan
account are not delivered against Succession Certificate.
Succession certificate covers only debts and securities. A Safe deposit Article is
neither a debt nor a security.
95.
A Demand Draft payable to bearer cannot be issued by the Bank.

Section 31 of the RBI Act prohibits issue of bearer draft. It is punishable under
section 58(b) of the Act. A bearer draft, if issued, will become virtually a
currency note.
96.
The payment of a Bank draft 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. 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.
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97. Demand Drafts should not be signed in red ink by the signing
officials.
The red ink pigment is relatively very unstable and hence will fade away in due
course; further, it may be washed off quickly by water etc.
98. The signature of the payee should not be attested at the back of the
draft by an official.
In the past, the fraudsters have forged the signature of the official who has
signed the draft and made forged identification of payees. Such a practice will
reduce the level of care at the paying branch, which might result in frauds and
forgery. RBI instructions.
99.
Validity of a draft is restricted to three months.

The draft is a remittance mechanism and hence should be valid for a very short
time in modern times with fast communication and wide banking facilities. To
ensure that the instrument is not in circulation for an unreasonable long time;
the risk of manipulation, alteration etc. minimized. Established banking practice.
100. A discharge on a revenue stamp is obtained from the purchaser of

the draft while cancelling a draft.
It is regarded as a receipt for payment and hence it is stamped as receipt under
the Stamp Act. RBI has advised that a discharge over the revenue stamp should
be obtained, whether the payment is made by credit to account or by cash. The
proof of payment will be easy in a court, if need arises.
101. Usance bills have to be presented to the drawee for acceptance.
In a usance bill, the drawee is not liable until and unless he accepts the bill.
Hnece, the bill has to be presented to him promptly for his acceptance as per NI
Act.
102. Dishonoured bills have to be protested and noted, if required by the
lodgers of the bills.
It is a proof that the bill has been dishonored either by non- acceptance or nonpayment. Proof of dishonor would be easy in a court.
103. Bills returned unpaid should be marked with without recourse
endorsement before they are handed over to the lodgers.
Such an endorsement is a notice to the lodger (and other subsequent
endorsees, if the lodger endorses the bill to a third party) that the Bank will not
be liable on the bill (Sec. 50 of N.I.Act).
104. RR accompanying a Bill should not be in the name of the consignee.
This will obviate the possibility of the consignee/third parties taking delivery of
the goods without the Banks endorsement, in case the RR falls into the hands of
the consignee/ third parties, through oversight. Also, if it is in a negotiable form
the Bank can pass on the title to the drawee against payment.
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105. Railway Receipts accompanying bills given to the Bank for

negotiation should not be older than 7 days from the date of
negotiation.
Otherwise, the goods might have arrived at the destination; the risk of goods
being taken delivery by the consignee by executing an indemnity is also there.
Further, at a few larger centers, the Railway authorities may sell the goods if
they are not cleared by the consignees within 7 days.
106. The Banks interest in goods covered by BL. RR etc. should be
advised to the carrier.
To obviate the possibility of the consignee obtaining the goods by executing
indemnity. Such notice is given in respect of BBRs/DBRRs, in which cases the
Bank has advanced against the bills.
107. The usance bill, if dishonoured, requires noting and protest, but not
a cheque or a draft.
Unlike a draft or a cheque which is payable on demand, a usance bill is a time
bill and acceptance of such a bill establishes liability. Dishonour of such a bill
after acceptance needs to be noted/protested, which serves as a proof of
dishonour if the holder requires the same. Further, the dishonoured draft or
cheque is returned to the payee which itself is a proof of dishonour.
108.
Usance bill has to be stamped whereas Demand Bill is not stamped.
Usance bill is payable only after a fixed tenor from the date of the bill or from
the date of acceptance of the bill. Once it is accepted the liability of the drawee
is established. It has to be stamped as per the stamp act. An unstamped usance
bill will not be accepted in the court as evidence in the event of litigation: ( A
Demand Bill is payable on demand or on presentation and does not require to be
stamped as per the Stamp Act).
109.
Opinion has to be compiled on borrowers/discounters of bills.
To ensure that the parties are honest, credit-worthy and persons of integrity. To
ensure that only genuine trade bills relating to the trade or business of the
borrowers are discounted; also to ensure that the quantum of limit corresponds
to turnover, means etc. Opinion contains the Total Means and Break up Worth of
the borrowers/parties.
110. Holograms has to be affixed in the drafts for Rs.1.00 lakh and above
against the payees name as also on letters of credit and guarantees
issued by the bank irrespective of the amount.
It is an additional protective measure. These are instruments, which are sent to
third parties, and any attempt to tamper these instruments will put the
beneficiary on the alert. To prevent frauds and protect the banks interests.
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Deposits (Compiled by Team SBLC)

111. Nominations in TDRs/STDRs swiped under MODS do not require
separate nomination
Nomination given by the customer for the deposit account will hold good for the
term deposits also and separate nominations are not required for the Multi
Deposits so created. As taking of multiple nominations in the principal account,
not only increases the workload at a branch, but also causes dissatisfaction in
the minds of the customers
112. Updation of Customer Records has been advised by RBI
Many customers face inconvenience on account of delay in updation of customer
records, covering any change of address, e-mail, telephone No. etc. In all such
cases, important correspondence in the intervening period between intimation of
change and updation of records with the Bank is directed to customers old
address and resultantly it is returned undelivered causing inconvenience and
sometimes resulting in avoidable service charges to the customers
113. SBI Flexi Deposit Scheme introduced
To cater to the needs of the people who have surplus income & seasonal income
and desire to earn income, Term Deposits with flexibility of increasing the
amount introduced
114.
Annuity Deposit Scheme Reintroduced
To marketing the product with focus on regular fixed monthly income to self
employed/professionals, retired persons, beneficiaries of compensation from
Court Order/ insurance companies etc, we can revive the scheme and book
substantial business
Technology (Compiled by Shri Team SBLC)
115. 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.
116. Disaster Recovery Plan must be prepared for all the brnaches
To ensure that in the event of a disaster the branch is capable of dealing with
the situation and take emergent action to restore the normalcy and
commence transaction within least possible time.
Organization and Business (Compiled by Team SBLC)
117. Relationship Banking is gaining importance now.
To build up close rapport and understanding with the customers,
Enable us to anticipate the needs of the customer well in advance and to
meet them,
To meet the competition from the other players in the market.
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118. Bank has set up Asset Liability Management System.

To manage the mismatch of assets and liabilities, interest rate risk and
transaction risks,
To improve profitability of the bank.
119. Drop Box facility has been introduced at the branches.
Introduced as a part of BPR Initiatives of the bank,
Customer will drop the cheques for credit to his account even after the
working hours
As per the recommendations of the Tarapore Committee.
120. Banks are required to publish quarterly results.
It is mandatory for the companies to publish the quarterly results as per the
listing arrangements of the stock exchanges.
Stake holders will be informed of the bank's performance so that it will keep
the interest of the investor in the bank's share.
121. Operational Risk has been given importance by banks.
It is in accordance with the Basel II recommendations,
Due to rapid increase in the volume of business, risk in the operational area is
increasing,
to strengthen the soundness and stability of the banking system
Legal Aspects of Banking (Compiled by Shri G.Venkateswara Rao)
122. Banks can not sell the assets pledged to them at their will though
the repayment is not forthcoming and advance is called up?
In terms of Sec.176 of Indian contract Act, a reasonable notice should
be given to the borrower intimating the banks decision to dispose the
assets towards recovery of dues from him. Then only banks can dispose
of the assets.
123. Nominees signature is not obtained on the nomination form?.
To maintain the secrecy as the account holder may not always be
inclined to let the nominee be aware of the nomination made by him. It
is also convenient for the depositor to change the nomination at his own
will as and when he desires to change the same.
124. As far as possible, account opening for un-discharged bankrupt
should be avoided?
The un-discharged bankrupt is subject to number of disqualifications. His
assets and liabilities vest in the official receiver/assignee. Hence account
opening for such persons to be avoided to safeguard the banks interest
from entering into litigation as his funds carry the risk of attachment
until and unless he is discharged.
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125. A power of attorney must be definite and unconditional to be

accepted by the bank?
Because fulfilment/completion of the conditions/purposes may
automatically withdraw/terminate/ cancel/ revoke the POA without
banks knowledge thereby carry higher risk of landing the bank in
problems.
126. While opening a partnership account, a partnership letter (COS-37)
is obtained even though a copy of the partnership deed is
submitted?
Banks partnership letter empowers the partnership firms to open an
account as they may not have the implied authority to open a bank
account in their deed.
In the partnership letter partners undertake to notify the bank whenever
there is a change in the constitution of the firm. Hence all interim
transactions are protected till bank is advised of the change in the
constitution.
127. As soon as a minor partner attains majority, he should be made to
sign the existing partnership letter in addition to the new
partnership letter?
This is done with a view to get his ratification of the previous
transactions transacted during his minority.
128. Cheques drawn by the customers are not paid after the receipt of
the notice of their death?
Agency and mandates are terminated/withdrawn/ evoked/ cancelled on
the death of the principal as per Sec.201 of the Indian Contract Act.
129. Failure to obtain revival letter from the guarantor doesnt affect
the legal enforceability of guarantee?
The liability of the guarantor is co-extensive with that of the principal
debtor. The RL signed by the borrower is binding upon the guarantor
and extends the limitation against him also. Hence the legal
enforceability is not affected.
130. We can allow payment of a cheque in cash after business hours
only if it is presented by the drawer himself?
As the drawer cant countermand (stop)payment of cheque in such cases
131. Cheques whose crossing has been opened are paid to drawers or
his known agents only?
Crossing of a cheque is not a material alteration, whereas, opening of a
crossing is a material alteration. Hence payment of such a cheque to
persons other than drawers or his known agents may put us in uncalled
trouble if it transpires that the material alteration is made by
unscrupulous people by forging drawers signature.
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132. Dishonoured cheques do not require noting and protesting?

Since a return/ objection memo is enclosed to the returned cheque to
enable the payee/endorsee/holder to take suitable action against the
drawer. Negotiable instruments are noted and protested only when the
reason for dishonour is not forthcoming.
133. A cheque crossed not negotiable can be
endorsement and delivery?
transferred by
The transferability of a cheque is not affected by such a crossing and the

transferee doesnt get a better title than the transferor as per Sec. 130 of
NI act.
134. In case of a OD/CC a/c sanctioned to a partnership firm, the old
a/c is closed and a new account is opened on the demise of a
partner.
As per Claytons rule the first item on the debit side of the account is
discharged or reduced by the first item on the credit side. The credit
entries set off the debit entries in chronological order. Thus in case of
death of a partner, the debits in chronological order which are set off by
subsequent credits doesnt constitute debt which can be claimed from
the deceased partners assets. Bank may suffer a loss if the same cant
be recovered from the remaining partners. Hence to obviate the
operation of Claytons rule, the bank closes the old account and opens a
new account. The same is applicable in case of partners retiring or
becoming insolvent.
135. The documents to title of goods, if it is a documentary bill, should
be drawn with the name of banker as consignee?
In case the document to title to goods is drawn in the name of drawee,
then there is every possibility that the goods will be removed by the
consignee i.e; drawee in this case, without accepting/ paying the bills.
Hence the document of title to goods in case of documentary bills is
preferably to be drawn in the name of the banker or at least endorsed in
favour of the banker.
136. Mandate letters should not be accepted from limited companies
and co-operative societies?
Limited companies and co-operative societies are legal entities which are
represented by people acting in fiduciary capacity. Hence people acting
in fiduciary capacity can not issue mandatory letters. Mandatory letters
are normally issued by individuals and proprietary concerns wherein
individuals are acting in their own personal capacity.
137. Banks generally ask for the identification of the payee or the
endorsee of an order cheque?
For getting protection as paying banker under section:85 of NI act, the
payment must be made in due course. Section:10 of NI act defines
payment in due course as
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a)
b)
c)
d)
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In accordance with the apparent tenor of the instrument;
In good faith and without negligence;
To any person in possession thereof;
Under circumstances which do not afford a reasonable ground for
believing that he is not entitled to receive payment of the amount.
In view of the above, bankers ask for identification of the
payee/endorsee of an order cheque so that the payment is made in
due course.
138. The banker is called a privileged debtor?

The banker gets certain defined rights in the assets charged until and
unless the advance is repaid or liquidated. Such rights are bankers lien
in case of goods and securities and right to set off in case of money.
Based on this, the bankers charge takes precedence over others charge.
139. When an LIC policy is reassigned after the advance has been
repaid, the policy holder is advised to do a fresh assignment or
nomination?
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.
140. Packet for safe custody is not branded with
officer
seal of bank/bank
Packets received from the customer for safe custody are kept under the
contracts of bailment and pledge. Banker is expected to take reasonable
care of the goods bailed. Hence bank should avoid certifying the
contents of the packet with banks seal. Otherwise later on customer
may charge against bank for any deficiency observed in the contents of
the packet.
141. Certificate to commence business is not called for from Private
Limited companies for opening a bank account?
Under sec.149 of Indian Companies Act, a private Limited company can
commence business immediately on incorporation as they are not
mobilizing any public money by way of subscription of shares. Hence
certificate to commence business is not called for a pvt. limited co. for
opening an a/c.
142. Overdraft facility has been given against LIC policy. The borrower
committed a murder and sentenced to jai. What is our position?
The civil rights of the person convicted are not affected. The assignment
in favour of the bank is not affected and it is valid. Therefore the bank
can make a claim on the LIC for payment of the sum due under the
policy after the death of policy holder.
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143. Bank guarantee like financial guarantees and performance

guarantees need to be classified properly in respective heads?
Bank has to provide capital adequacy for all types of guarantees.
Credit conversion factor for performance guarantees is 50% and for
financial guarantees if 100%.
RBI has issued directive to banks to ensure proper classification for
having effective control over the guarantee transactions.
144. Advances against security of partly paid shares should not be
sanctioned?
Partly paid shares cant be sold.
Bank may have to pay the call money when called upon by the company
in case the borrower fails to pay the calls.
This may result in forfeiture to the company and the security available is
null and void.
145. A & B have opened a F or S deposit account. After some time A
approaches the Bank and wants to substitute the name of B with
C. His contention is that since he is mentioned as former, he is
entitled to change the survivors name at will.
The former has exclusive right to the deposit during his life time and the
survivor gets the title to the deposit only after the death of former. His
request is to be accepted.
146. Demand bills and usance bills should be properly classified?
Inland bills or usance bills which have to be accepted before payment
by the drawees and should be paid on due dates.in the event of nonpayment noting and protesting is required to safeguard banks interests.
Demand bills are payable on demand and appropriate action will be
taken if not paid on presentation. Hence to ensure proper follow up,
usance and demand bills to be classified correctly.
Advances (Compiled by Shri N.V.R.S.Subba Rao)
147. Revival letter for standard assets in Per segment is not taken.
The volume of Per segment business has gone up substantially and
obtention of RLs consuming huge resources
The saved time and resources can be deployed for business development
In case of term loans, the limitation starts from the date of default in the
payment of any of the instalments, and therefore, there is no need to
obtain RL or debit confirmation, so long there is no default in repayment of
the instalment.
148. Goods are insured to the extent of their full market value.
In case of under-insurance the insurable interests of the lending bank is
affected adversely by the operation of Average Clause. In case a claim
arises, insurance company will pay proportionately and the bank will be put
to loss
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149. A total reliance on balance sheet analysis alone is not desirable

while arriving at a conclusion regarding the financial health of a unit.
The units Balance sheet indicates the state of affairs as on a specific date and
not over a period of time.
It is capable of being window dressed for the sake of impressing the analyst.
It does not take into account non monetary factors like labor trouble, market
condition etc which influence a units performance to a great extent.
150. Credit appraisal is necessary even while extending non-fund based
facilities to customers.
Non fund based facilities to customers are in the nature of contingent
liabilities for the Bank. In such cases, the Bank may be called upon to pay the
amount in the event of the customers failure to do so.
151. In the case Demand Loans further withdrawals are not permitted.
Additional debits are not covered by the D.P note which is executed for the
loan amount.
The value of the D.P note gets reduced to the extent of repayments made
into the account.
No continuity clause is embodied in the case of demand loans
152. We do not insist on registration of a firm who desires to borrow
from us
Non-registration debars a firm from suing the other parties (firms
debtors/partners) but does not affect the rights of a lender/banker/outsider
as per Sec 69 of the Partnership Act.
153. In the case of death/retirement/insolvency/lunacy of a partner,
further operations on the cash credit account of the partnership firm
are stopped.
In the absence of such a step, the Rule in claytons case (incorporated in Sec.
61 of Indian Contract Act) will operate to the detriment/disadvantage of the
lending bank if a claim is preferred against the estate of the deceased
154. The Bank does not accept an equitable
land/building situated in cantonment areas
mortgage
of
the
An equitable mortgage of land/building situated in cantonment areas is not

recognized as a valid mortgage as per the Cantonment Board Rules
155. A D.P Note is obtained from the borrower in addition to the
ornaments pledged to the Bank
If the sale proceeds (after auction expenses) of the ornaments pledged to the
bank are inadequate to cover the entire outstandings in the account, we can
sue the borrower for recovery of the shortfall on the strength of the D.P Note.
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156. In the normal circumstances, we should not grant advances against

TDRs issued by other banks.
Other Banks refuse to mark our lien on the term deposit because T.D is a
debt by the issuing bank to its depositor.
The issuing bank has a first and paramount lien on it and can exercise the
right of set-off also
157. Undated discharge is taken on the Banks TDRs accepted as security
for advances
A TDR is repayable on maturity. A dated discharge given prior to maturity
shall be declared ultravires.
158. Advances are generally not granted against shares of private limited
companies
Shares of private Ltd companies are generally non-transferrable (Sec.3 of
Indian Companies Act 1956)
The lending bank shall not be in a position to have the assignment in its
favour.
These are not quoted in the share market and we can not ascertain their
present market value.
159. The Bank does not grant advances against its own shares
Restricted under Sec. 20 of Banking Regulation Act.
These advances amount to depletion/reduction in the financing banks capital
160. Form COS 245 is obtained in the case of advances against the
security of the assets belonging to a company (negative lien)
It is an undertaking (stamped as an agreement) obtained from the borrowing
company for not creating further charge, mortgage, lien or encumbrance over
its properties ( movable and immovable) and assets (including uncalled
capital ) without the Banks specific written consent.
161. We preserve the notices sent by post/courier service etc and keep
them unopened/intact when these are returned undelivered/un-served
These envelopes can be produced as an evidence of dispatch of notices in the
Court of law as the envelopes are branded with the postal date stamps.
A notice sent to the borrower/guarantor which is returned undelivered/Unserved for the reason refused is deemed as duly served in the law.
( Sec 144 of Indian Evidence Act)
162. The BPLR system has been reviewed / Base Rate regime introduced.
The BPLR has tended to be out of sync with market conditions and does not
adequately respond to changes in monetary policy
The tendency of banks to lend at sub-BPLR rates on a large scale raises
concerns of transparency.
On account of competitive pressures, banks were lending at rates which did
not make much commercial sense.
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163. The Interest rate on rupee export credit should not exceed the Base
Rate of individual Banks.
Export credit is of short term in nature and exporters are generally wholesale
borrowers.
There is need to incentivizes export credit for exporters to be globally
competitive.
Enables exporters to still have access rupee export credit at lower rates as the
base Rate envisaged is expected to be significantly lower than the BPLRs.
The system will also be more flexible and competitive
164. LTV ratio introduced for Housing Loans
In order to increase the safety margin for the Bank
To minimize loss due to defaults and prevent slippages
165. It is preferable for bank to advance SME sector, under CGTMSE
coverage
CGTMSSE cover is a more effective risk mitigation tool than collateral security
because the enforcement of collateral in case of loan default is a protracted
and expensive procedure.
166. No interest is applied on NPA accounts
NPA ceases to generate income for the Bank

The principal itself is doubtful of recovery in these cases.
In order to avoid tax liabilities on unreceived income.
As per RBI guidelines, income should be recognised on realisation basis but
not on accrual bias.
167. Credit exposure norms are stipulated by RBI

Concentration of credit risk is avoided thus eliminating the risk of All eggs in
the same basket.
Failure of a single advance will not affect the capital stability of the Bank.
168. The date of classification of NPA should be advised to CGTMSE
It enables the CGTMSE authorities to make provision for the account
To obviate the possibility of any delays in settlement of claim
169. When a loan account guaranteed by CGTMSE is closed, the Annual
Service Fee should be recovered from the unit on a Prorata basis and
credited to charges account
Now CGTMSE approves closure of accounts when branches make online
closure requests. After closure of an account, recovery of service fee would
be difficult. The amount which is recovered subsequently will have to be
remitted to the CGTMSE by debit to charges account.
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170. Home loan moratorium period has been revised recently

With the advent of integrated townships and mega residential complexes with
several towers, longer time is taken for completion of projects
In order to align repayment schedule with that of building completion
Higher moratorium period is considered for construction beyond 7 floors.
171. Opinion on borrowers/guarantors has to be revised every year
This will alert the Bank about any erosion of net worth of the
borrower/guarantor. The Bank can take additional security or other
appropriate action to safeguard the Banks interest. The Bank has lost many
cases as it was not able to identify/furnish details of assets of
borrowers/guarantors to the Court Officials for attachment, execution etc.
172. Bank should take more than ordinary care in the case of pledged
goods.
As per law only movable goods can be secured by pledge. Book debt is an
actionable claim which can only be assigned or hypothecated as security.
173. Margin on Raw Materials is less than that on Semi finished goods
Raw materials can easily be disposed of by the Bank, as at this stage they can
be utilized for manufacturing a variety of goods. Also, the value of raw
materials will not fall as steeply as that of SFGs in a forced sale for the same
reason.
174. While granting loans against motor vehicles the vehicles are insured
in the sole name of the borrower only.
If the insurance is done in the joint names of the Bank and the borrower,
third party claims may be made against the Bank as a co-owner in case of
accidents. Also, the Bank Interest clause is sufficient to protect the interest of
the Bank.
175. Banks name board are exhibited in the factories/ godowns in which
stocks pledged to the Bank are kept
This serves as a notice of the Banks charge to the outside world and of the
advance made by the Bank. Thus, the Banks first charge over the assets is
protected.
176. Even after the death of one of its director a cheque issued by a
company is paid
A company is a legal entity with perpetual succession.
The Director acts in a fiduciary capacity and his death will not affect the
existence of the company
177. Opening of LC is considered a credit decision
The unit has to meet the bills under L.C in due course. If it fails to do so, the
Bank has to meet the commitment and recover the same from the customer.
Hence, it is treated as a credit decision.
178. Bank guarantees are not issue for indefinite period
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These are contingent liabilities which may crystalise into actual liabilities. The
risk of crystalisation is very high when guarantees are issued for
long/indefinite period
The bank has to provide for Capital
There are also restrictions by RBI in this regard.
179. Banks do not advance against partly paid shares and pvt limited
company shares
It is difficult to sell partly paid shares and also the bank may have to pay the
call money when called upon by the company in respect of such shares in
case the borrower fails to pay the calls. Otherwise it will be forfeited by the
company. The shares of private limited companies are not listed in the stock
exchange and hence cannot be easily sold in the market. Further, it will be
very difficult to assess the value of such shares.
180. No advance is granted against Life Policies that are issued under
Married Womens property Act
Such policies are taken for the benefit of the family and in such policies the
policy-holder creates a Trust in favour of his wife and children, and hence he
can not encumber them for his benefit
181. The Bank can not sell the goods pledged to it without serving a
notice of sale on the borrower, even though the account has been
called up.
A notice of sale giving reasonable time for payment is a statutory requirement
(under S.176 of Indian Contract Act. It is also called a statutory notice). If it is
not served, the sale would not be valid and will be set aside by the court.
182. Debit and credit summations in the cash credit account are reviewed
while renewing the limits sanctioned to borrowers.
This will show the extent of utilization of the limits, whether the sale
proceeds/bills have been routed through the account and whether the
account has been conducted properly. Adequate facilities commensurate with
the current level of operations can be extended.
183. It is preferable to grant advances
hypothecation of stocks rather than pledge.
to
companies
against
Sec.125 of the companies Act provides for registration of the hypothecation

charge, it serves as an automatic notice to third parties as also to the
subsequent creditors, pledge charge can not be registered as there is no
provision for the same.
184. While creating equitable mortgage, nothing in writing should be
obtained from the person creating the mortgage.
If any instrument is signed by the mortgagor while he creates an equitable
mortgage, it maybe contended later that the mortgage is a registered
mortgage and that it is inadmissible as evidence, as no stamp duty has been
paid on it.
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185. While taking an equitable mortgage the mortgagor is required to

send a separate confirmatory letter.
In order to secure an independent legal proof that the mortgagor had
deposited at the notified centre the title deeds of the immovable property
with intention to create an equitable mortgage.
186. In case of a term loan in Per segment, if a few instalments are in
default, the notice should be served on borrower only and no notice
recalling the advance should be sent to guarantor.
If a notice of recall of advance is served on the guarantor, it triggers
limitation period. If a demand is made on the guarantor and the loan is
regularised by the borrower, then the bank will be required to obtain fresh
guarantee from the guarantor.
Foreign Exchange (Compiled by Shri T.V.N.B.Raju)
187. Concessionary
borrowers.
Rates
of
Interest
are
extended
to
Exporter
Exporters earn valuable foreign exchange and they have to compete in the
international market which is very competitive.
RBI grants refinance to Banks at concessionary rates of interest.
To encourage Exporters and to incentivize the exports. Also forex is very
much required to take care of our imports and external debts.
RBI guidelines.
188. Forward Contract are booked by exporters/importers.
To ensure against the risk of fluctuations in exchange/forex rates.
To ensure that the profit margins are not eroded/affected
189. Full Set of Bill of Lading should be presented to the Bank for
negotiation.
The holder of one negotiable copy of the B/L is entitled for delivery of goods.
If the full set is not obtained by the negotiating bank, there is every risk of
third party getting hold of negotiable copy of B/L and obtaining the goods.
To ensure against any operational risk in handling the documents/bills.
190. L.C. and other documents are to be scrutinized carefully when an
export bill is received for negotiation.
To ensure that the L.C. is in order and valid
To ensure that the documents are drawn strictly in conformity with the terms
of L.C. Otherwise the documents may be returned unpaid by the opening
Bank/ paying Bank.
To ensure that the Bill is not dishonoured as the Bank usually extends finance
to exports finance under post shipment finance.
191. TT Rates are more favourable to customers. (OR) TT Buying Rate is
quoted for foreign inward remittances where cover has been provided.
As forex funds have already been credited to us through Nostro account, the
Bank is prefunded with the amount.
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There is no risk of non payment/non-reimbursement of funds by the other

Bank
192. Import/Export Bills are crystallized if they are not paid within the
stipulated period.
Import Bills are crystallized as our Nostro A/c would have been debited when
the bill under our LC was negotiated by the negotiating Bank.
The foreign liability must be converted into rupee liability within the stipulated
period to help avoid Bank's exposure and or customer's exposure to the risk
of adverse exchange rate fluctuations.
In line with international practices
193. ECGC cover is now obtained for Export Packing Credit (EPC)
To facilitate improving capital adequacy ratio of the Bank
To have an advance guaranteed by the insurance corporation
194. NRI Assistance Cell / NRI facilitation Cell has been set up at LHO.
(OR) Lot of importance is given by the Bank for NRI deposits.
NRIs are our Privileged customers. NRIs contribute to more than 10% of our
Deposit portfolio and the deposit growth in this segment is substantial.
To render specialized and customized service to them and to ensure quick
processing of their requests.
To ensure that their complaints/difficulties are resolved promptly, a Cell has
been created at LHO.
Government Business / Cash (Compiled by Shri T.V.N.B.Raju)
195. One rupee note/coin is issued by Govt. of India where as notes of
other denominations are issued by Reserve Bank of India.
Govt. of India is vested with the power to issue one rupee coin under the
Coinage Act, 1906.
Issuance of One rupee note is treated as one rupee coin issue hence handled
by GOI.
The issue of notes of other denominations is delegated to RBI.
196. No entry is passed while transmitting treasure from one currency
chest to another.
Currency chest is the property of RBI.
Treasure transfers are effected at the instance of RBI.
The Bank's cash position is not affected.
RBI instructions.
197. RBI changes the security features of the Bank Notes periodically
Counterfeiting of Currency Notes is a threat not only to the RBI but also to
Nation.
To ensure against exploitation of the features of the Notes
by the
Fraudsters/criminals and to prevent counterfeit notes.
To make them user friendly(viz.,easy identification by visually challenged etc.)
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Payment Systems (Compiled By Shri T.V.N.B. Raju)

198. The Bank should not recover any excess charges in respect of
remittance or collection that is not provided for by RBI.
These charges are prescribed by RBI in accordance with Payment &
Settlement Act, 2007.
Any deviation/infringement of its instructions will be viewed seriously by RBI.
If recovered less, Bank will loose other income.
199. While an application for funds transfer under RTGS is obtained,
customer's signature must be obtained on the back of the application
which contains the "conditions for transfer".
In respect of these remittances, Bank will be the agent for the customer and
should carry out the task with due care and diligence.
The customer acknowledges that the Bank is not liable in the event of delay
in transmission/non transmission of the message.
To ensure that the terms and conditions are read by the applicant and are
binding on all parties.
200. Unclaimed Bankers cheques of more than 3 years issued by debit to
Charges a/c are credited to Bank Charges a/c.
Efforts should be put to trace out the payee of the Banker's cheque and to
ensure that the unpaid /outstanding Bankers cheques are kept bearest
minimum in the Branches.
To eliminate large number of items outstanding for a long time and their
periodical balancing.
Even after crediting to Charges a/c, any claim by the Payee should always be
entertained. Therefore payment is never denied
201. Interest payment for delayed collections are paid to customers.
(Cheque collection Policy has been revised by the Bank).
It should be the endeavor of the Bank to ensure that all the instruments are
collected within the time frame stipulated and no undue delay occurs.
To ensure that the customers are compensated for the undue delay in
collection / realization.
As Best Banking practice/ RBI guidelines
202. Payment of penal interest for delayed credit/refunds of NEFT
transactions has been introduced.
To enhance the customer service and efficiency parameters of the system in
view of large scale growth in the electronic payment transactions.
To ensure efficient functioning of customer facilitation centres.
203. Yuva Card has been introduced.
As a welcoming product to the Youth to join our fold
To make the Bank, Preferred choice of generation-Y.
To be perceived as an Techno-savvy Bank, especially by youth.
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A user friendly product with Rewards programme and with many value added
features
204. Cash is now accepted at our branches for payment SBI Card dues.
We are promoting SBI Credit Cards in a big way.
To facilitate easy payment of dues by the Card holders at any of our
branches.
To leverage wide network of our Branches and to improve other Income.
RATIONALES (Based on e-Circulars)

(Compiled by P.Rajendra Prasad, AGM)
205. The ceiling on the remuneration payable to the Home Loan
Counsellors raised from Rs.10,000 to Rs.25,000/-.
With a view to aligning the remuneration payable to the Home Loan
Counsellors in tandem with movement of residential real estate prices,
and thereby incentivizing them to source high value loan proposals
206. It has been decided by the appropriate authority to offer all
categories of account holders in Corporate Salary Package (CSP)
and Defense Salary Package (DSP) account holders, a discount of
1% on card rate of gold coins of all denominations, 2, 4, 5, 8, 10,
20 and 50gms
In order to continuously enhance the Salary Package product and make it
more attractive
A huge potential is available to be exploited
207. In cases where the customer chooses to opt for SBI Surakshit
Home Loan plan, a separate letter for that purpose will be obtained
from him along with the Home Loan application form.
As per the regulatory guidelines, the insurance policy is required to be
sold to the customer only when he volunteers to obtain the cover.
With a view to ensuring demonstrated compliance with these guidelines
and avoiding incidence of alleged coercive tactics by the operating units
for selling of insurance products
208. The provision of stamping the SB account as dormant after one
year since withdrawn
As per revised RBI guidelines, Savings as well as Current Account
should be treated as Inoperative if there are no debit as well as credit
transactions induced at the instance of customers in the account for over
a period of two years and these guidelines have not made any
differentiation between inoperative and dormant account.
To align with the RBI guidelines and to have uniformity across the banks,
our extant instructions have been revised..
209. Bill selling/buying rate for all FTC transactions will be applied
instead of TT selling/buying rate, in respect of Vishwayatra foreign
Travel card
To cover the cost of operations of FTC and improve profitability
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210. Reserve Bank of India has advised all Banks to formulate a broad
based transparent penal interest rate policy
In order to avoid indiscriminate levy of penal Interest to borrowers.
The policy should be governed by well accepted principles of
transparency, fairness, incentive to service the debt with due regard to
genuine difficulties of customers
211. cash acceptance facility has been rolled out at SBI branches for SBI
card holders
With a view to add value to the SBI Card by making available one more
payment option to the cardholders.
It also provides an avenue for the branch for improving their other
income, as SBI card will pay commission of Rs.2/- per thousand or part
thereof for cash receipt
212. It is essential that the Bank Guarantees issued are properly
categorised.
Incorrect classification would result in incorrect applicability of credit
conversion factor, the factor used to convert the non fund based limit to
funded limit, on which the bank provides applicable capital charge
213. RBI has cautioned to be more cautious and vigilant in respect of
inward remittance towards participation in lottery, money
circulation schemes
Remittance in any form towards participation in lottery schemes is
prohibited under the Foreign Exchange Management Act. 1999.
RBI has now advised that there has been a spate of fictitious offers of
cheap funds in recent times from the fraudsters through letters, e-mails,
mobile phones, SMS, etc. Branches are, therefore, advised to exercise
due caution and to be extra vigilant
(Collected by Team SBLC-updated by Shri K.Ramesh Babu, Chief Manager)
214. Cheque Truncation is being introduced
To Capture image of cheque and restricts their physical movement
To speed up the collections
To prevent the possibility of frauds
To minimize complaints of missing of instruments
215. Data Warehousing and Data Mining are the need of the hour
It seeks to centralize a variety of data and data mining attempts to dig into
the data.
Its goal is to find out patterns of customer behaviour
It helps in designing new products and cross- selling products.
CRM heavily draws on these
216. SBI Vishesh has been introduced
A product for mass affluent gives variety of value added services & special
privileges in order to ensure proper recognition of the underlying
relationship.
By offering attractive concessions and providing specialized services class
customers can be attracted.
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To face the competition with the new generation private and foreign banks.
It will help in improving banks image among VIP customers.
217. Higher margins are fixed for receivables/book debts when
compared to raw materials
Realization of receivables/book debts may be difficult
Raw materials can be realized quickly as it can be disposed easily
218. Bank has entered into General Insurance Sector.
To leverage our strengths, namely Brand Equity/Network/Experience
Workforce
To tap the huge potential in the Insurance Sector,
To increase our earnings.
219. Payment of cheque outside business hours is not made to any
person other than the drawer
To have protection under Section 65 of N I Act.
To obviate risks like, stop payment of cheque by drawer subsequently,
To safeguard the interests of bank in case of death/insolvency/insanity of
the depositor etc.
220. Guarantees issued by bank should have a limitation clause.
To ensure against bank's liability on account of BGs issued for an indefinite
period.
To have a control over the liability amount on account of BGs issued by the
bank for a period
221. Photographs of the borrowers should be obtained in cases of all
agricultural advances even if they are literate
To identify the borrowers/guarantors easily, particularly during the visits to
the villages
To ensure better follow-up of advances
To enable us for building up relationship by recollecting their names.
222. GRR is an important indicator.
One of the scientific efficient parameters to gauge the business growth and
profitability.
As a Goal and to have a control over the performance of business.
223. RBI introduced Special Mention Accounts [SMAs]
To identify the accounts with early warning signals and take effective
measures against slippage to NPAs.
RBIs directive.
224. Bank's name plates should be displayed prominently on all goods
pledged or hypothecated to the bank.
It serves as a notice to the public at large about the bank's charge over
goods
To avoid multiple financing
It helps as a publicity tool.
225. The bank has to give due notice to the pledgor, before selling the
goods pledged.
A statutory requirement as per Section 176 of Indian Contract Act
To have recourse against the borrower for the short fall if any in Sale
Proceeds
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226. Interest rates are linked to credit rating of the borrower.

Risk Rating is considered to be based on assessment of risk involved in the
asset,
Both internal and External factors influencing the health of the borrower is
taken into account.
More the risk, more the rate of interest, encourages healthy units with
better rating.
227. Inspection of agricultural advance should be "farmer oriented" than
"farm oriented"
In a given area/locality all agricultural lands are usually similar. Therefore,
mere farm oriented finance is always not very useful.
To have a better understanding of total credit needs of the farmer and to
meet them in time
To avoid the farmer to approach money lenders at usurious rates.
To encourage Agricultural lending.
228. Banks generally grant advances against goods by way of Cash Credit
only.
The allowable drawings in Cash Credit Account depend upon the value of
the goods hypothecated/pledged.
To obviate the bank to obtain documents frequently for changes in
outstanding.
For operational convenience to the borrower,.
229. On death of partner, cash credit of partnership firm would be closed
and new account opened.
To crystallize the liability of the deceased partner.
New account is opened to prevent the operation of rule in Clayton's case to
the detriment of the bank.
230. On the DP Note two signatures of the borrowers, one over the
revenue stamp and the other by the side of it is insisted
Signature on the revenue stamp cancels the stamp.
The other signature proves the execution of DPN by the borrower, even in
case the stamp is de-fixed, thereby bank's interest is protected.
231. Charge of hypothecation is preferable in case of advances to
companies
Bank can register as secured creditor, its charge with Registrar of
Companies under Section 125 of Indian Companies act.
To have preference as secured creditor even in case, with official liquidator
also
To have reflection about our charge over assets in the search report.
232. Bank obtains confirmation letter in case of equitable mortgage
As an evidence to prove that the title deeds were deposited with the bank
voluntarily, with an intention to create Equitable Mortgage as Security.
233. Bank takes general letter of lien and set off
It authorizes the bank to adjust/[set off] with the surplus if any, after the
sale of assets in case of need.
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234. Banks should obtain personal guarantee of the partners also.

Though partners are liable jointly and severally as per Act, the personal
guarantee obtained by bank helps to proceed against his personal assets in
the event of any future litigation.
235. When a bank draft is cancelled, a receipted discharge on revenue
stamp is taken from the applicant.
Upon cancellation, the draft ceases its negotiability and takes the form of a
receipt.
A receipt attracts Stamp duty as per law.
236. Job rotation should be undertaken at regular intervals.
It facilitates to review and analyze the work load and proper distribution is
ensured- with a view that,
The employee should not experience monotonous and lacks enthusiasm
To provide opportunity to all the staff members for a reasonable exposure
and job enrichment
Also as a measure of preventive vigilance to avert frauds.
237. NPA are a drain on profitability.
NPAs effect reduction in profitability, on one hand they do not earn any
income and on the other hand, it attracts provisioning thereby erodes
earned profits.
The maintenance cost viz., legal exp., insurance premia etc. are also more
The risk weight of NPAs is higher. Hence, they require more CRAR.
238. Although we obtain partnership deed, we insist for partnership
letter.
As per partnership letter i.e. COS 37, partners undertake to advise the bank
about any changes in the constitution of the firm and also they abide by the
terms of opening of account and mode of operation.
All the interim transactions are protected till the Bank is informed of the
changes in the partnership.
239. A cheque payable to a partnership firm cannot be credited to a
partners account,.
The relationship between partners in a firm is of fiduciary nature.
In case of such payment, bank will be liable for conversion.
240. Bank is liable for any damage caused to articles in safe custody.
In case of safe custody, the relationship between the bank and the
customer is that of bailee and bailor.
In terms of Section 151 of Indian Contract Act, as bailee for the goods
received, bank has to take utmost care in keeping the goods as a prudent
person without negligence, as in the case of own goods against destruction,
deterioration, dampness, white ants etc.,
241. All instruments received for credit to an account either by post or
over the counter must be branded with the Banks crossing stamp
immediately on receipt.
To indicate Banks interest as agent for collection of the instrument.
To prevent from putting the instrument to improper use by unscrupulous
persons with a view to defraud the bank
To get the protection to collecting banker as per Sec.131 of NI Act.
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242. A letter of disclaimer has to be obtained while accepting cash from

the person who comes to the bank for closure of a gold loan account of
the deceased constituents without production of legal representation.
To prevent the remitter from claiming the ornaments with some rights as
remitter..
To make him join as a party to the letter of indemnity/surety., along with
other legal heir against future litigations.
243. No advance is granted on partly paid shares
To avoid forfeiture for non payment of unpaid calls by the bank
The unpaid call amount is the contingent liability for the lending bank
The bank is liable for the unpaid balance in case of liquidation of the Co.
RBIs clear permission is needed to make the payment
244. Gestation period is allowed for Term Loan
To consider the normal time to complete the project and commence
commercial production to generate income to service the debt
245. Capital Adequacy norms are being tightened every year
In the present dynamic environment, it is necessary to have adequate
capital to absorb different kinds of business risks.
To meet the Global Standards
246. Consent of guarantor is necessary for rephasement of TL
Rephasement of Term Loan is considered as a material alteration and
requires consent of all parties including the guarantor
To enforce guarantors liability as per section 133 of Indian Contract Act.
247. Requests for extension of due dates of usance bills are not generally
granted by the drawee branch/bank
Drawee Bank/Branch is the agent for collection of amount under the bill,
and not conferred with any right to grant such extension.
As per section 135 of Indian Contract Act, such grants by an agent, would
release all the earlier endorsees from liability.
248. Form "A"/SME-6 has to be sent to us by post by the borrower/
guarantor, a day after the creation of equitable mortgage.
Form A/SME-6 is a letter confirming that the depositor has willingly
deposited the title deeds with an intention to create security for the loan.
If dated the same day, it amounts to memorandum, and may attract stamp
duty.
To avoid legal complications.
249. An account should not be opened in the name of un-discharged
insolvent.
The property of un-discharged insolvent vests with official receiver.
Any contract with un-discharged insolvent is not valid as per law.
250. Advances are not granted to minors.
Contracts with minors are void ab-initio as per Sec.11 of Indian Contract Act
Minors can bind all others to the contract except themselves.
The documents executed by the minors are inadmissible in the court of law
251. Documentary bills are preferred to Clean Bills
Documentary bills, hold the documents to title of goods, hence considered
genuine trade transactions.
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In case of need as an endorsee, the bank can acquire the goods under the
document and put to sale.
252. In granting advances, viability is more important than the security
offered.
To ensure booking of need based loans
Viability ensures income generation persistently,
accordingly
the
repayment is fixed
To ensure quality assets for the bank.
253. The payee of a cheque cannot stop payment of the cheque.
Payee of cheque has no privity of contract with the bank.
Hence bank need not follow the instruction of the person other than the
drawer.
254. Our charges are to be registered with Registrar of Companies within
the stipulated time.
To comply with the terms under Indian Companies Act.
Any delay would effect in losing the priority charge over the assets and the
loan becomes unsecured.
255. Before granting an advance to company, its Memorandum and
Articles of Association should be scrutinized.
Memorandum of Association declares the objectives of the company and
any finance ultravires to its objectives, would nullify the whole contract.
Articles of Association declares borrowing powers of the Board of the Co.
Verification ensures the eligibility to borrow by the company.
256. A Bill of Exchange is deemed to be due on the preceding business
day when its actual date of maturity falls on a public holiday
In terms with Section 25 of Negotiable Instruments Act.
If paid subsequent to due date, it can be construed as invalid.
257. Items in the course of collection are not attachable by Garnishee
Order
Garnishee order issued by a Court attaching the sums due by a bank to the
judgment debtor, therefore does not cover future credits.
258. TDRs maturing on Holidays are paid on the succeeding working day
but not on the preceding working day.
TDRs are not negotiable instruments and does not attract terms as per Sec
125 of NI Act
TDRs are in the form of Receipts for the monies deposited payable on
maturity date. Any payment before maturity date will be treated as premature payment.
259. All the documents under LC should be as per the exact terms and
conditions of the Credit.
LCs are governed under UCPDC
As per UCPDC, all the parties under LCs deal only with documents and not
with goods
Hence to confirm that the documents are in order and not leaving any room
for misinterpretation
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260. Bank does not negotiate/transact foreign exchange transactions for

large amounts on Saturdays
International Money Market is closed on Saturday, therefore it is difficult to
cover the transactions in minimizing risk of Exchange Fluctuation.
261. Expired Bank Guarantee and LC are to be reversed immediately
To exercise better monitoring and control
to avoid provisions of capital on expired BGs/LCs
262. Affixing of Hologram is compulsory on letter issued by the bank to
Regional Transport Authority for cancellation of Bank's Lien.
To ensure additional Security
To recognize the genuineness of the advice.
To avoid frauds and protect Banks interest
263. Periodical verification of Staff accounts should be done by the
Branch Manager
To have control over transactions in the accounts of staff members
to have a check on unusual credits to the accounts of staff members
as a measure of preventive vigilance
264. RBI has stipulated the payment of interest on delayed collection of
cheques
To strengthen the cheque collection system, among banks and improve
customer service.
To adopt technology to expedite the cheque clearing system
to discourage delay in service
265. The Validity of draft is now restricted to 3 months
for better reconciliation
to avoid circulation of drafts for unlimited period
to discourage holding of drafts for hoarding purposes
266. All letters and Dak received at the branch are opened in the
presence of the branch manager daily.
To ensure a better control and follow-up over the inward dak
To ensure that all the cheques/instruments received for collection or
otherwise are properly accounted for and instructions are followed without
delay
to ensure that all the letter received are attended by the branch without
delay in correspondence
To ensure overall control of external correspondence by the BM and smooth
functioning of branch without complaints
267. Relationship Banking is considered as a key to customer satisfaction
Since banking is in service sector, the approach makes the bank to
understand the customer needs and deliver the services to his utmost
satisfaction
To win over the customer in the competitive market
To make reach to the customer the bank's different products, and to create
opportunities for cross selling of other products.
268. Double passing of cheques has been introduced
To have extra caution in dealing with high value transactions
To prevent frauds in high value transactions
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269. Open Term Loan facility is introduced

To provide more convenience to borrower customers in procuring quality
assets at competitive prices
To enable them to have a better plan of capital expenditure
270. Agrl Inspection norms are modified recently
To maintain a closer relationship with farmers in order to understand his
financial needs and to market our products.
To ensure effective follow up for early warning signals
To improve quality of assets
271. Consent clause is incorporated in the loan document
RBI directives
To safe guard the interests of banks and financial institutions in India
against wilful or other defaulters
To bring more cohesiveness among the bankers in dealing with defaulters
272. Banking Codes and Standard Board formed
To ensure fair treatment of customers and create healthy competition
among banks by observing minimum standards
To protect the interests of the customers against exploitation from banks
273. Strategic Business Units have been set up
To have more focus in tapping the available market potential for profit
maximization
To have care and concern for the customers in a focused way
To work out strategies in improving market share
274. GBU (Government Business Unit) has been set up under NBG
(National Banking Group)
Govt. business contributes considerable portion to our income at low cost.
It also helps in mobilizing low cost deposits.
Secondly, there is no monopoly of our bank on this in present time and
portion of it has been taken by new players in the market. The new
positions (i.e. GBU under NBG,) have been created to keep required focus
on this and meet the enhanced competition.
This strategic business unit will help bank to develop proper policies in
changed business condition and keep our share intact.
275. Negative variance is better than Negative Growth of the business
Negative growth means loss of existing business.
Negative variance means budgeted growth has not been achieved.
It is difficult to make up the lost business..
This shows the gravity in case of negative growth
276. Alternate Channel is need of the hour
Several alternate delivery channels such as ATM, Phone banking, Internet
banking, etc. will provide customer satisfaction and convenience.
It will decrease the crowd at the counter and give free time to branch
operative to sell and market products.
It will help to improve market share and quality of business.
It will help our bank to retain undisputed leadership in India and compete
effectively with new forces of the market
Transaction cost is very low
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277. SBI has introduced Performance linked incentive scheme for its staff
Salary and perks of PSB (Public sector Bank) officials are less in
comparison to that of New Private sector bank and Foreign Banks.
As the salary and incentive of our bank should be in tandem with the
competitors to meet the emerging need of the bank and to keep the good
officials in the fold the bank.
This will motivate the officials and ensure superior performance.
It will also help to retain best and experienced employees in the bank
278. Password security is observed in Branches
Password security protects bank and safe guards 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/ organization
More than that it can cause reputation loss for the organization.
279. Proceeds of a clearing cheque cannot be credited to Government
account unless the stipulated return clearing hours are over
The Govt. Account cannot be debited in the event of cheque being
dishonored and it takes a very long time for recovering the same from the
Government
280. No employee at the branch should handle the Clearing
Desk/Department for unduly long periods
So that no vested interests are developed and committing of frauds
averted. To remove monotony in the routine job over a period of time
281. Banks declare quarterly results
As investors require more frequent dissemination of information on the
Banks performance and our Banks equity share is one of the index
makers in the stock exchanges, a need is felt to prepare quarterly results
As per listing arrangements with stock exchanges
282. We deduct from the gross worth of a firm the minors share in the
assets
Minors share in the assets cannot be charged against the debt of the
partnership as he is admitted only for the benefits of partnership
283. Certificates of Deposits are introduced in the Banking System
To widen the range of money market instruments and to provide wider
choice to corporate investors for profitable investment
284. Banking holiday should be declared as public holiday under N.I.Act
As it is required under Sec.25 of N.I.Act, 1881. As the banks deal in
negotiable instruments, they can not stop business unless holiday is
declared under the Act
285. Concurrent Audit is conducted at bigger branches
To trace out errors for their rectification on an ongoing basis. To avoid
accumulation of large irregularities difficult if they are not pointed out
immediately, to check whether the Systems and Procedures are followed
meticulously, to plug income leakage. To verify documentation of loans
sanctioned with a view to protect our interest in case of legal disputes and
to facilitate easy conduct of Central Office Inspection and Audit
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286. Books of the Bank are closed once in a financial year

As per SBI Act and RBI Act, Banks Books and Registers have to be
balanced and closed as on March 31 every year to present them to
Statutory Auditors and submission to Central Government after
certification; to arrive at net result of our operations during the year and
to determine Banks Tax liability
287. Items in the course of collection are not attachable by Garnishee
Orders
Because in the case of collections the Banker-Customer relationship is that
of Agent and Principal but not that of Debtor and Creditor. Garnishee
Orders are issued for funds due but not becoming due
288. Minors cannot be adjudged insolvent
Because Minors have no capacity to contract in terms of Sec.11 of Indian
Contract Act
289. The weighing scales and the weights must be certified by the
Controller of Weights and Measures annually
The use of unverified weights, measure, weighing & measuring
instruments is an offence as per sec 264 of IPC and Sec 153 of Cr.P.C
290. Certain large advances Branches are subjected to RBI Inspection
Under Sec.35 of RBI Act such inspections are carried out to ensure proper
compliance of various policies and norms of credit framed by RBI from
time to time
291. Greater importance is attached to Asset-Liability management (ALM)
Because there is an inherent risk for the banks in the asset-liability
mismatches. A mature asset-liability management exercise enables banks
to properly deploy funds and avoid risk of running short of liquidity
292. Cash officer to carry out intra-day cash verification at the cash
counter(s) at irregular intervals
To reduce incidence of frauds committed at cash counters by employees.
To curb tendency of some of the employees working at the cash counters
to pocket money without accounting the same in the Banks Books
293. Resolution is insisted for opening an account in the name of a
Limited Company
The Company being an artificial person having separate legal entity can
act only through the resolution passed by the Board of
Directors/Authorised Officials. The Bank will get the specific instructions as
to how to open and operate the account of the Company. Non-compliance
may lead to litigation
294. Nominees Signature is not obtained on the nomination form.
Not required as per the B.R. Act, to maintain secrecy from safety angle.
Nomination is subjected to change any time at the instance of the original
parties to the contract.
295. Operations are not allowed in the account of partnership firm on
death of a partner
On death of a partner, partnership firm stands dissolved. To avoid
application of Rule based on Clayton's case, to crystallize the exact liability
of the deceased partner as on the date of his death, No liability to be
casted on the legal heirs after the death of the partner
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296. A search is to be made with Registrar of Company before and after

granting an advance to Limited Company
To ensure that no prior charge exist over the securities offered before
granting advance, to ensure that our charge is registered., To protect the
Banks interest at ROC
297. Trust Deed should be verified once in a year
In order to ensure that the instructions of annual compliance nature in the
Trust Deed are not overlooked.
Non-compliance may lead to litigation
298. Confirmation of debit balances on COS 48 are to be stamped
Obtention of balance confirmation amounts to an acknowledgement of
debt and extending the period of limitation under Limitation Act. Any
acknowledgement of debt requires to be stamped as per Indian Stamp
Act
299. Pledged goods cannot be sold without notice to borrower
The pledger may bring a better bidder in his own interest
To avoid legal complications arising out of any possible objections by the
pledger; Ex. the stocks are being sold cheaply.
As per Indian Contract Act. Sec172 pledge is only bailment of goods where
ownership lies with the pledger and possession with bank.
300. Maturity proceeds of time deposits of RS. 20,000/- and above should
not be paid in cash
Required in terms of Income tax act, this is to curb benami transactions
leading to tax evasion
301. A cheque drawn by a Director of a company on its account can be
paid even after the death of the director
A company is a legal entity with perpetual succession. As the director is
operating in his representative capacity and not in individual capacity,
such cheques can be paid even after the death of the director
302. Chequebooks are not issued on current accounts opened for public
limited companies while accepting their share application monies
etc., into the account
In the event of the company failing to obtain the minimum share money
as prescribed, the entire balance should be refunded to the applicants. If a
cheque book is issued, Cheques drawn have to be paid by the bank, if
they are in order. It may not be impossible to refund the money to the
applicants
303. A person who has signed the letter of relinquishment need not join
the execution of indemnity letter
Signing relinquishment letter implies surrendering of his right or claim not
only in his share in the property but also absolving himself of future legal
liability towards the bank and other legal heirs
304. On the death of one of the joint depositors, the survivor does not get
absolute right over the property
Section 45 of Indian Contract Act, 1872 provides for repayment of monies
received from joint depositors, on the death of one of them, jointly to the
survivor and the legal heirs of the deceased. Survivor holds the property
in trust for the legal heirs of the deceased
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305. Term Deposit Receipts cannot be presented through clearing

TDRs are Non-transferable receipts. They are not negotiable instruments.
Clearing is meant for settling transactions between banks on account of
negotiable instruments
306. Partnership Letter (COS.37) is obtained from all the partners when
an account is opened
It restricts the implied authority of the partners and imposes an obligation
that any change in the partnership is to be informed to the Bank. This also
makes all the partners liable jointly and severally
307. On the death of a partner or whenever there is change in
constitution of the firm the account should be closed and reopened
It enables the Bank to quantify the liabilities of the partners in the
dissolved firm and to guard against operation of the Claytons rule
308. An endorsement transferring the amount of a TDR to a third party is
not admissible
The TDR is only a receipt, which is not transferable. It cannot be
transferred by endorsement and delivery. It is payable to the depositor or
nominee or the survivor on due date as per established and recognized
rules in force
309. Safe Custody Receipt must be produced at the time of taking delivery
of the securities, while memorandum of securities is not insisted
upon
Memorandum of securities is a mere acknowledgement while Safe Custody
Receipt is a receipt against deposit of articles
310. The Bank is responsible for not taking reasonable care of an article
kept in Safe Deposit, which was damaged due to improper/negligent
handling by the Banks Staff and absentmindedness
As per Section 151 of Indian Contract Act, a bailee must take as much
care of bailed articles as a reasonable man of ordinary prudence would
take care of his own articles
311. A nominee can demand premature payment of a TDR standing in the
name of a depositor who had nominated him the nominee and later
died i.e. before the maturity of TDR
The nominee has the same rights as that of a depositor after the death of
the depositor
312. A bearer draft is not issued
Issuance of bearer drafts by banks is prohibited by Sec.31 of RBI Act. This
will tantamount to issuance of currency, which right is vested with RBI
only. Infringement is an offence punishable under section 55 of RBI Act
313. A standard register is maintained for recording details of settlement
of deceased constituents
To ensure proper follow up and to expedite formalities for disposal of
claims of legal heirs. To record claims received in chronological order and
to avoid complaints for delay in settlement
314. When Cheques are returned to the Constituents, the Banks crossing
stamp and register number, if any, must be cancelled
To avoid any liability as an agent for the collection of an instrument
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315. Whenever a minor partner attains majority, he should be asked to

sign existing partnership letter in addition to the fresh partnership
letter
To ratify the previous transactions and to bind himself for future
transactions and to make him accept joint and several liability along with
the other partners
316. A Power of Attorney must be definite and not conditional
Because the failure to fulfill the conditions may automatically cancel the
Power of Attorney and jeopardize the interest of the Bank
317. Production of legal representation is not required for disposal of
money left with the Bank in the case of deceased Army and Air Force
personnel
Such property is governed by the provisions of the Army and Air Force
(Disposal of Private Property) Act, 1950. (Letter from the Commanding
Officer of the unit is sufficient to pay the money to the dependants of the
deceased)
318. While cancelling a duplicate draft, when the original is lost in transit,
consent of the payee is necessary
It is to be ascertained whether the payees claim in respect of the draft has
been satisfied and payees express consent is to be obtained in writing.
The bank becomes a payee once a draft is sent to the payee trustee
319. While issuing duplicate Demand draft, the original draft voucher is to
be kept with the letter of indemnity
To facilitate easy verification by inspecting officials and to produce the
same as evidence in legal disputes
320. The depositors of SBI are called Unsecured Creditors
As they have no charge on the assets of the SBI they do not hold any
security
321. Cheques presented after business hours are not paid
As such payments are not considered as payments in due course under
Sec.10 of the N.I.Act and to obviate any liability if the payment proves to
be defective. Sec.65 of N.I.Act provides for payment of negotiable
instruments during banking hours
322. Cheques payable to joint stock companies should ordinarily be
credited to their accounts
To make the payment in due course and to get protection under Sec.10 of
the N.I.Act, 1881. They represent the property of the company. Hence, if
credited to others account, it amounts to wrongful conversion and bank
gets no protection
323. We insist on a crossed cheque being credited to the Holders Account
in a bank rather than to pay the Holder over the counter even when
the Holder is identified to the satisfaction of the Bank
As per Sec.126 of N.I.Act, 1881 the Paying Banker gets protection only
when he pays the amount of Cheque to the Account Holder. Further, it is a
direction to the paying banker to pay the amount only through payees a/c
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324. The Customer is under no obligation to acknowledge entries in Pass

Book/Statement of Account.
The entries in the Pass Book are not conclusive, binding and/or
unquestionable on both the parties (in India & UK). Express agreement by
balance confirmation letter alone is conclusive of transactions.(However, in
USA silence of the customer on receipt of the Pass Book/Statement
confirms the correctness of entries)
325. Reasonable Notice must be given by the Bank before closing an
unsatisfactory account
Account is a bilateral contract. Bank cannot unilaterally close the account
and terminate the contract. This is to obviate chances of litigations and
thereby not being made liable for wrongful dishonour of Cheques issued
on the account
326. Branch Manager should examine all Trust Accounts & Deeds
periodically
Trust Accounts are fiduciary in nature and it must be ensured that their
provisions are not overlooked because any violation is there it lands the
Bank in trouble for refund of monies to the beneficiaries
327. Private Limited Companies can start business on getting Certificate
of Incorporation itself
Such Companies do not invite Public subscription to their Capital and
statutory requirements in this regard are not necessary for them to follow.
They need not wait for the certificate to commence business issued by the
Registrar of joint stock companies
328. SB Accounts are not to be opened for Firms/Companies
SB accounts are purely meant for individuals with a view to encourage and
inculcate savings habit in them but not for business purposes. SB Accounts
cannot be opened for profit oriented commercial organizations as per
Income Tax Act
329. SB Withdrawals not accompanied by Pass Books should not be paid
Withdrawal Form is not a cheque and is only designed to suit the
convenience of Depositors of non-cheque operated accounts and to
obviate chances of frauds by forgery by unscrupulous persons
330. Branch Manager should scrutinize Staff accounts at Quarterly
intervals
To ensure that the inflows of monies, spending and life style of Staff
Members is of usual nature commensurate with the known sources of
income and they are properly conducted
A preventive vigilance measure
331. The prospective Current Account Depositors have to sign an
undertaking while opening a Bank Account
This is to obviate possibility of lodging of Cheques in the Current Account
of another Bank other than the Bank granting credit limits as the
outstanding in the lending Bank become unsecured
332. Current Account Formality Register should be maintained
To ensure that no single formality while opening the account is overlooked
and to serve as a reminder to complete the formalities remaining to be
attended to
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333. Succession Certificate not to be insisted upon irrespective of the

amount involved for settlement of claims of deceased constituents
RBI directive on payment of balance in accounts of the deceased
customers to legal heirs without insisting on succession certificate
334. Accounts can be closed if bouncing of cheques is continuous
Irregularly conducted a/cs are a source of danger to the Bank and must
not be allowed to continue as such forced closure of such a/c is permitted
335. Gold ornaments or articles in Safe Deposit should not be delivered
against Succession Certificate
Succession Certificate is applicable in the case of only debts and securities.
Gold loans do not fall under the category.(However it is applicable in
states of UP & MP)
336. Constituents should be asked to transfer securities in the name of
the Bank even if those are lodged for safe custody
To enable us to collect the interest on securities at periodical intervals
when due and on due date the principal has to be got recovered/renewed
337. Packets/boxes tendered for Safe Deposit are not sealed with the
Banks seal
To avoid possibility of contesting by the depositor that the bank has
tampered with the contents of the packet/box and resealed it. This is done
also as a precautionary measure from future litigations
338. A Safe Deposit Locker cannot be hired either singly or jointly in the
name of a Minor
Safe Deposit Lockers are hired on Stamped Agreement causing contractual
relationship between Bank and Hirer and Minors have no contractual
capacity in Law i.e. minor can not enter into any contract, as per Section
11 of Indian Contract Act
339. Power of Attorney Holder should not be allowed to surrender the
Locker Key to the Bank
PoA Holder is only authorised to operate on the Locker for convenience of
hirer and the original agreement is between the Bank and the Locker
Hirer. Termination of the contract is in the hands of the original hirer only
340. We must insist for a full set of Bill of Lading
To avoid the risk of delivery of the consignment on production of any one
copy of the set as all the copies are negotiable
341. We normally do not collect Bills for non-constituents
To avoid liability to the true owner if it proves to be a conversion. We lose
protection under S.131 of N. I. Act, 1881 if they are not our constituents.
342. Scale of finance in case of crop loans varies from district to district
It varies with the cost of cultivation from place to place depending upon
the agro climatic characteristics of the region and varied cost of different
input components
343. Crop Loans are to be sanctioned only during the season
Crop loans are sanctioned to meet the cultivation expenses to grow the
crops and therefore help to obviate diversion of funds for unproductive
purposes
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344. Two-months cushion period is added for repayment after harvest of

the crops
The peak harvest prices will be low. To enable the farmer get a better
price after announcement of support price by the Government. Further,
there will not be any buyers for the produce in view of wetness it contains
soon after harvest. This is to enable the farmer to sell his produce i.e.
marketing time
345. Minimum two milch animals are to be financed under dairy farming
scheme
In order to ensure continuous and uninterrupted income through dairy,
even when one animal goes dry as the animal has two phases of life cycle
i.e. lactation period (milk period) and dry period
346. In case of illiterate borrowers/guarantors the thumb impressions
should not be attested on the documents
It should not be attested as it attracts ad valorem stamp duty. Instead, a
separate letter on form AGR-9 is to be obtained from two witnesses to
prove that the contents of the document were explained in a language
known to the borrower/guarantor
347. Interest on Agricultural Term Loans is calculated in May and
November
It coincides with harvesting of kharif & rabi crops and it is easier &
convenient to repay the installments and interest from the sale proceeds
and will not result in compounding of interest
348. A farmer who is being financed for purchase of tractor should be
persuaded to avail of crop loan facility also
To avoid borrowers approaching the money lenders to get finance for
cultivation expenses, thereby reducing the cost of funds to cultivators and
to discourage multiple financing. -Sufficient surplus is generated from
cultivating the land for regular repayment of instalments of Agricultural
Term loans
(Compiled by N.V.RS.Subba Rao, Faculty)
349. Bank is keen to increase the share in non fund based business
In order to have diversification and increase profitability
Comparatively lesser operational cost
Lower risks involved
Good source of deposits by means of margins
350. Take over of accounts from State Bank groups prohibited
As a system of coordination for avoiding and also do present unhealthy
competition among SBI group Banks.
351. The right of general lien/set off can be exercised in the case of timebarred debit also
The effect of limitation is to bar the personal remedy to recover a debt by
filling a civil suit and not to discharge/extinguish the debt. The relationship
of debtor-creditor continues till the lending banks dues are paid in full.
303 | P a g e
THE WINGS
SBLC, MASULIPATNAM
352. Advances granted to minor cannot be recovered from his guarantor

also.
The principal contract between the banker and the minor borrower is itself
invalid. Therefore, the secondary contract (i.e. the contract of guarantee) is
also void ab-Initio and unenforceable
353. Advances against pledge of goods need not be registered with the
registrar of companies
In terms of sec. 125 it is a specific and not a floating charge. Only floating
charges need be registered with Registrar of companies.
354. In the case of Gold loans ornaments can be auctioned without
resorting to court of law.
This is a pledge advance. Under Sec 172 of Indian contract act, 1872, there is
no necessity to go to court of law for realizing our dues.
304 | P a g e
THE WINGS 2011
SBLC, MASULIPATNAM
THUS THEY SPOKE . . .

about
(THE WINGS-2011 & SADHANA SERIES-2011)
S
NO
1.
FROM WHOM
COMMENTS
lakshmi.kant@sbi.co.in
24.01.2011
I got Sadhana Series of TO model test which was

issued by your SBLC. It was a great effort made
by you to help the TO candidates.
I went through your book "THE WINGS" for TO2010 batch and found it really very helping. I will
be appearing for the TO exam this year. I
wanted to know if you are planning to launch a
similar book for this year TO batch too. I will be
grateful if you please tell me that when that
book will be available and the site to download
the same.
Congratulations and thank you for on bringing
such a helpful booklet
2.
Ashish Kumar, State Bank Of India,

RASMECCC, DURGAPUR
07.02.2011
3.
Ratna Teja A.D.

Chief Manager
Project Citizen SBI, Intervention II,
Corporate Centre, Mumbai.
18.02.2011
Abhishek,
Management Executive
24.02.2011
4.
5.
Rajesh Kumar Singh

PO-2009 Batch, Hyderabad Circle
20/02/2011
6.
Deepmala, SBI
Koderma Bazar Branch
25.02.2011
7.
Mohsin
Pf-5982162
Mobile-9837660681
Email id-mohsin.ali@sbi.co.in
State Bank Of India
Khatauli
27.02.2011
Monika
27.02.2011
8.
Jaiswal
These question paper are really help full. We are

doing our preparation in full swing and we will
definitely
give
the
best
results.
Thanks for your blessing and all the efforts which
you have taken for all of us.
Recently I got "The wing-2011 supplement" from
Anup Sen's google group. I am finding this
material very useful for my confirmation. Sir, I
would be highly obliged to you if you could
forward the earlier materials of the Wings-2011
to me.
The materials available are excellent to guide us
for TO Exams i got THE WINGS but was unable
to find the site for SADHANA kindly give the site
details. The material provided by you are very
fruitful an path showing in the way of
preparation
I read your Sadhna Series material for
preparation of trainee officer. It is a
great collection to success in the exam .I
completed my 2 yrs period. now in the month of
april-2011 I shall appear in the examination of
trainee officer. I am very thankful to you for your
sadhna series.
I found the SADHANA SERIES-2011-ME test
paper. It is very helpful for our confirmation
examination. i m highly grateful for your this
help.
305 | P a g e
THE WINGS
9.
abhinav anand
01.03.2011
10.
Anup Sen
01.03.2011
M S R CHARYULU
BRANCH HEAD
JACKSON HEIGHTS BRANCH
NEW YORK.
PHONE 001-347-507-0116
03.03.2011
11.
Wrote again on 24.03.2011
12.
TRIBHUWAN SINGH RAWAT

ASST
SBI MAIN MARKET
MUZAFFARNAGAR
UTTAR PRADESH
04.03.2011
13.
Rohit Kakkar
Deputy Manager
State Bank of Patiala
04.03.2011
14.
chandu
(B. Chandra Sekhar)
State Bank of India,
Ram Laxman Junction Branch,
Srikakulam 532001
04.03.2011
MANATOSH SAHOO
SBI, CUTTACK BRANCH
04.03.2011
15.
SBLC, MASULIPATNAM
Thanks for the material u sent to me for TO
exam 2010 as a result I am a TO now, and a lot
I owe to u, hope u will keep sending me the
materials so that I could become scale 2 in the
first attempt.
SBLC Masulipatnam is doing excellent job.
Congrats to you all.
I have been following up with interest various
question and answer papers you have been
putting up through the Anup Sens group.
Though I could not patiently read through all of
them, I have attempted many of them. I must
say, it was good. The effort which has gone into
the papers is clearly visible, and I am sure they
will help many of our employees, not only in
their examinations, but in enriching their
knowledge. I wholeheartedly appreciate the
effort (I know, it is difficult), and my best wishes
to you and all your team members.
One day, people will tell you, they have been
benefited by the papers, and you will savor the
moment.
I have gone through the Wings supplement as I
do every time. For whatever reason, I always
look forward to read through the Masulipatnam
material, though every other day we all receive
supplements or materials from many SBLCs.
Once again,I must to compliment you and your
faculty members for the quality material you
have put in
I would like to thank you and your SBLC
MASULIPATNAM TEAM for bringing out the new
edition of WINGS , SIR I would like to convey to
you that your study material is reaching out to
thousands of t.o. aspirants through ANUPSENJI's
group. I have browsed through your material
and it seems updated, thx a ton for your efforts,
while no other SBLC has come out with such a
material your efforts are worth appreciating. THX
a lot sir.
Thank you very much for providing promotion
related material through Sh. Anup Sen ji. I am a
regular reader of the material and is of utmost
use
I am preparing for the MM III examination.
Yours Wings 2011 is very useful for all promotion
examinations.
Till now I have gone through only 2-3 pages of

"THE WINGS-2011". it is an amazing compilation.
Thanks for helping us so much n our last hour
studies.
306 | P a g e
THE WINGS
SBLC, MASULIPATNAM
First of all a lot of thanks to you and your team

for cooperating me through out my preparation.
I personally wish to get the blessings of such a

great mentor like you who has been supporting
me through out this preparation and I will try my
best to get success at least for the people like
you and your team who have been restlessly
supporting us by providing excellent study
materials.
Congratulations as three of your faculty
members won the case study prizes. Sir, you
proved that wherever somebody is posted,
wonders can be created there. I am regularly
seeing your material sent through Anupsen.
Really we are very proud of you sir.
Thank you very much for your and your
team's constant motivation and guidance to us
since our association with SBLC masulipatnam
16.
SAIRAM, AGM, IFB, Hyderabad

06.03.2011
17.
Biswa Ranjan Nayak

HYD circle
07.03.2011
Raju Gupta
SBI,Zonal office Jabalpur
Madhya Pradesh
13.03.2011
bc nayak
sbi, lho, bhubaneswar
18.
19.
I really liked your Test series for T.O exam. I am

going to appear in the forth coming T.O exam
can you please send me more model papers for
practice for which I will be very grateful to you.
I am reading your study materials published by
Wing regularly which is examination oriented and
very useful to me.
17.03.2011
20.
Bhaskar
14.04.2011
21.
Rahul.mahajan2@sbi.co.in
20.04.2011
Deepak.sinha1@sbi.co.in
20.04.2011
22.
I use these precious and wonderful banking

notes very useful of our promotions. In the
meantime, sir can u provide notes on caiib
subjects
I have read your useful material for to exam. I
am very obliged to see your great effort.
Your Sadhana Series has helped us a lot

for promotion
23.
S. Narasimhan, Asst. General Manager

(Retd.) from Hyderabad LHO
21.04.2011
24.
Aditya
Manager
STATE
BANK
Capetown, RSA
22.04.2011
Negi
OF
INDIA
I have been advised by Shri Anup Sen that your

SBLC has been coming out with some good
material for these preparations. He has recently
forwarded me a copy of the TOs model test
paper No.3 also. I shall be glad if you will
please include me in your mailing list and share
the material (so that I can give to some
promotion aspirants in the Bank) for the larger
benefit of our colleagues in Hyderabad Circle
I am presently posted at SBI Cape town branch
in South Africa and due for MMIII, my branch is
not connected to intranet and i could not access
latest circulars and other study material for
promotion exams, sir i will be obliged if it is
possible for you to help me by providing some
study material through email
Many thanks for your support, i got the Wings 2011, but as i cant access any of the intranet site
i cant able to download the other data, kindly
send me the sadhana series-MES
307 | P a g e
THE WINGS
SBLC, MASULIPATNAM
25.
26.
Jai
Shankar
Manager(PBD)
MMGS-II
SBI, Ferozepur City
23.04.2011
Shilpa
IBTO
Head
Office,
Los
California, US
27.04.2011
Sharma
Prashar
SBIC
Angeles

27.
dharvinder.singh@sbi.co.in
29.04.2011
28.
Madhusudhan Bhat,
AGM (Credit Audit-Mobile Duty),
Worked as Admin in State Bank
Times during 2005-2007
02.05.2011
I again congratulate you and your team for

compiling such a comprehensive data which is
very useful for people like me who dont have
access to the different SBI sites and other
material available on the intranet
I have heard a lot of praise of the Study Material
prepared by your good self. Will u please send
me latest study materials relevant for SBI MMGSIII Promotional Exams being held in May 15th,
2011.
I am a P.O. of 2006 Batch and due for my
promotion
to
Scale
II
this
year.
I am presently posted at Los Angeles SBIC.
Please provide some tips for preparation and
guidance on study material
I would like to express my sincere thanks for the
valuable guidance and information.
I really appreciate the way you help your juniors
to scale new heights in career. Thank you so
much.
The Wings supplements are excellent job done
by you and your colleagues and widely circulated
by Mr.Anup Sen in his group mail.
Keep up the spirit and continue it on an ongoing
basis. Though I am not writing any exams, I feel
the effort to consolidate objective type questions
topic wise is a step in the direction and will go a
long way in minimising knowledge gap for
operations staff.
One Suggestion.
At some point of time, I think you should freeze
it consolidating all the objective type questions
for each of the topics like Master Circulars.
Thereafter, depending on the Circulars issued
during the previous day, you should update on
an ongoing basis every day and display it in a
permanent location like the present one. Once
you do this, I hope mushrooming of many such
Objective type questions from various SBLCs will
stop (This will avoid duplication of efforts)
and your location will be looked upon as "one
stop shoppe". This will also avoid a feeling of
overkill of information in State Bank Times. .
Thank you very much for your prompt response
and sharing your dilemmas. I know the pressure
of both doing regular training sessions and
simultaneously engaging in "development" work
as this. My suggestion is only an outcome of
recognising such exemplary efforts put in by
you. I think you can ambush all other "bits and
pieces" efforts of colleagues if your team
continues with the present excellent job. My
suggestion was to raise the bar so that no one
can match you and you become a one stop
shop.
308 | P a g e
THE WINGS
29.
30.
SBLC, MASULIPATNAM
UDAY
KUMAR
SINGH,BRANCH
MANAGER,BALUTOLA BRANCH,
R-I , PURNEA, BIHAR
06.05.2011
B SAMBI REDDY
BRANCH MANAGER
SBI RUSHIKONDA
08.05.2011
Hearty congratulations to your most talented and

honourable team members. Convey my best
wishes to
1. Shri N V R S Subba rao, Manager (Training)
2. Shri G Venkateswara Rao, Manager (Training)
Who have won the All India Third Best Case
Study and All India Second Best Case Study
conducted by our Prestigious STATE BANK
ACADEMY, GURGAON respectively.
31.
32.
33.
34.
I am a very fond of your and your SADHANA

SERIES which has helped many aspirants in a big
way. I am a big fan of you and your SADHANA
SERIES
I congratulate the entire team - you have won
the HEARTS of so many staff members across
State Bank Group in India. The study material
YOU are preparing really useful particularly to
PROMOTION ASPRANTS and all staff members in
GENERAL to update their knowledge base.
Really you are doing wonders.
Your SADHANA & WINGS series created lot of
HOPES among promotion aspirants that they
need not now-a-days go to neither BANGALORE
nor some other places for preparation nor
purchase books from them. Whatever time just
available within this tight schedule of everybody
assignment, there is is definitely little time left to
refer to this Valuable Study Material.
I once again wish your team WONDERFUL AND
REMARKABLE
ASSIGNMENT
in
SLBC,
MASULIPATAM. My hearty congratulations to
your faculty Mr. T V N B Raju for achieving
JADUGAR award for the year 2009-10 conducted
by STATE BANK ACADEMY, GURGAON
Chitra Chakrabarti
Assistant Manager
PF a/c 15705, SBBJ, IBD Kolkata.
09.05.2011
Vinay
09.05.2011
Surya Kant Sharma
Manager(A & A)
Rohtak-0706
10.05.2011
RAJ
KISHORE
SAHU,
DEPUTY
MANAGER, PROJECTITS,AO PATNA
It is a welcoming feature under your able

leadership, State Bank family NOW knows what
and where is SBLC MASULIPATNAM. The
practice tests you are posting to Shri Anupsen
really helping everybody in pre-promotion
(ON_LINE) training
It will be very helpful , if u kindly send me some
study material for the promotion test
For scale 1 to scale 2 in our bank ( State Bank of
Bikaner & Jaipur) .
I have read some study material prepared by
you. It is very useful. Please send me other
material.
Convey my sincere thanks for your kind support
& guidance to aspirants for forthcoming
promotion exam. for MMGS-III to be held on
15/05/2011
Thanks a lot for preparing such useful study
material for us-SADHNA SERIES 2011- SCALE III.
10.05.2011
309 | P a g e
THE WINGS
35.
36.
37.
SBLC, MASULIPATNAM
SAHIRAM
CHAHAR,DY
CHURU -RAJ BR
10.05.2011
S P DASH
DY. MANAGER(sys)
11.05.2011
MANAGER,
MANISH NEGI "MANN"

(Msc(Physics),
CAIIB, CIF, AMFII)
STATE BANK OF INDIA,
DEWAL(BR CODE-7688)
DIST- CHAMOLI
UTTARAKHAND
12.05.2011
PGDNRM,
38.
girish.dharmadhikari@sbi.co.in
15.05.2011
39.
Trapti Menaria
SBI , Commercial Branch
Udaipur (Rajasthan
15.05.2011
Arabinda Kumar Dhal)
Patnagarh
Code 1321
17.05.2011
40.
41.
Sudeepta
Surat
19.05.2011
42.
zonun.sanga@sbi.co.in
24.05.2011
43.
Aparna Patil,
branch(360).
27.05.2011
Nasik
Sr.Asst/SBI
roy.
Deolali
camp
Thanks for the PRACTICE PAPER FOR SCALE III

Which are very useful and helpful to take the
examination with confidence
I find your series very helpful
I am TO aspirant and presently posted in Dewal

Branch of District Chamoli (Uttarakhand). I am
getting your material regularly. The Quality of
material speaks itself about it and I hope if a
person goes through it thoroughly then no one
can stop him/her from getting promotion. I
would like to congratulate to each and every
team member of SBLC Masullipatnam.Under your
able leadership, you along with your team had
done marvelous work for the benefit of whole
SBI family. Your team has set a benchmark for
other SBLC to follow. I am speechless about the
commendable work done by your team. I hope
and wish that this work will keep on continuing
forever for benefit of all.
This specially to thank for the excellent and
useful study material provided by you for the
benefit of the candidates who took their written
test today on 15.05.2011 for their promotion to
MMGS III. Almost all the candidates with whom
I interacted were in all praise for you. Trust
many more aspirants shall continue to be
benefitted in future
We are very thankful to you & your team for
providing the valuable guidance in the form of
WINGS
Thank you very much for your guide of TO
Exam. Sadhana series. We shall be glad if you
guide us to obtain study materials for OJM Test
2011.
First I would like to sincerely thank you and
congratulate you for compiling such wonderful
material for preparation for TO exam to be held
on 5.6.2011 as many aspirants like myself would
be highly benefitted by this compact yet
extensive study material
I am appearing for the coming TO exam on 5th
June 2011, I have gone through The Wings 2011
Supplementary found it to be very useful.
I am working as a assistant and now preparing
for the exam of Trainee Officer dt 5/6/2011.I am
using your question papers of "Sadhana Series".
It is very helpful material. I am greatful if you
send me more question papers so that I can
practice more.
310 | P a g e
THE WINGS
44.
45.
46.
SBLC, MASULIPATNAM
N. Johnson Singh
SBI Lumla - Arunachal Pradesh
b k arora
10.06.2011
Topaz
Kayal
Probationary
Officer,
State Bank of India,Newalipore Branch
15.06.2011
47.
Jyoti, Nagpur 26.06.2011
48.
AMIT KUMAR
T.O. 2010-Batch.
29.06.2011
A.Srinivas
Branch Manager
05.07.2011
49.
50.
jothi parthiban
08.07.2011
51.
Chittaranjan Mohapatra, Bhavanagar,

Gujarat 26.08.2011
52.
Sunny Bhat pf 4094891

sunny.bhat@sbi.co.in
SARB JAMMU 27.08.2011
I found interesting and very helpful reading your

materials.
Sir, thanks for providing various exams study
material. your material is very useful. Sir, can
you provide study material for jaiib exams.
We the new probationers 2010 batch in SBI are
really thankful and grateful for your sincere
efforts in bringing out such nice study materials
for promotion exams.
My Name is Jyoti and I am preparing for State
Bank PO Exams which will be scheduled on 24th
July 2011 and for associate PO on 7th Aug 2011.
I want study materials related to General
Awareness, Marketing and Computer Fields
which are generally come into exams ,I read
many of the study material provided by you to
my Sister as she is also working in State Bank of
India and also preparing for Promotional Exams.
She has suggested me to send you mail for study
material for Bank Exams. Many of questions has
been come to the bank exams which where
conducted recently and I am glad to read those
questions.
I just want to thank you for your kind support
regarding promotional materials. I am truly
benefited from Sadhana-Series
I really thank you very much for the circulating
Sadhana series. The material prepared by your
team is really worth. I have successfully cleared
my MMGS III written examination only because
of Sadhana papers. I am really grateful to all
your SBLC team
I am Jothi Parthiban, Asst.Manager, Cbe. I am
going to appear for scale II exam on 10th July.
At the outset I want to congratulate you and
your team members for the excellent Question
and Answers, Sadhana Series. It is really very
useful.
I want to thank you and your team for your
support to the new aspirant assistants working at
SBI. Before our preparation for the exam I was
unaware what to read and how to prepare for
the T O exam but with your Sadhana series I
started my preparation and the result is I got
Shortlisted.
Again I want to thank you and your team from
the core of my heart for your support.
I have cleared the Trainee Officer written exams
which was declared recently. Sir, it was all due to
the study material provided by your SBLC.
311 | P a g e
THE WINGS
SBLC, MASULIPATNAM
53.
ABHIMANYU KUMAR SINGH

ASSITANT MANAGER
25.11.2011
I am feeling immense pleasure to say you that I

have been finally selected as Trainee Officer
this year. I would like to say that this could not
be possible for me without the study of the
excellent STUDY MATERIAL prepared by your
team. The STUDY MATERIAL is undoubtedly best
for all aspirants of T.O. exam. I would like to
convey my heartiest greetings to you and all
your team members for their hard work.
54.
Rakesh
Meher
,CRPD(Corporate
Centre), Mumbai 23.12.2011
I take this opportunity to thank you & your team

Members for genuine efforts taken to compile
Commendable "WINGS". I really appreciate that
WINGS helped me lot within short span of time
. And many more appreciations over phone.

Above all, around 60 to 70 requests by email received from all corners of the country for providing
material, for guidance and solutions to practical problems in their branch, request for PO exam
material, CAIIB material, even guidance for project work in MBA exam, which shows the popularity of
THE WINGS & SADHANA SERIES and the confidence TEAM SBLC, MASULIPATNAM has won among
career conscious people of State Bank Family.
312 | P a g e

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Reading Material for Promotion Examinations

STATE BANK LEARNING CENTRE,

With best wishes

STATE BANK LEARNING CENTRE

TEAM SBLC MASULIPATNAM

Office Phone Nos.

KEY RATES OF RBI AND SBI

KEY RBI RATES

SAVINGS BANK RATE

FOR TRAINEE OFFICER ASPIRANTS

PRACTICE MAKES ONE PERFECT-START PRACTISING WRITING

Priority sector lending,

Bits based on e circulars

The facility of back dated interest is stopped for ______

RIDF stands for

b) Rural Industries Development

MCC issue charges @ Rs.2/_ per leaf is now available to

All short_term crop loans sanctioned / renewed / disbursed during the

Additional Interest Subvention of _______will be given to farmers as

In SIMPLIFIED INB ROLE HOLDING MODEL FOR SMALL BRANCHES, the

In respect of KYC Documents to be submitted at the time of Opening

As on January 2012, the bank is managing _______ currency chests across

In respect of expired Bank Guarantees, the reversal of entries are to be

The Maximum amount of processing fee for a Home loan is capped at

In Branch Customer Service Committee_____no of representatives from

_________is the Nodal Branch for Money Gram business

_______is the maximum limit per transaction in Money transfer schemes

The maximum amount of finance available to a weaver under Weaver

The weaver credit card is valid for __________years, subject to annual

Which of the following support would be extended by Government of India

For securing Education loan which of the following documents is mandatory

The no of clauses to be certified in BMMC Form_16 now is

Recently Bank has introduced a campaign HAMARA BANK: HAMARA POS.

No prepayment penalty will be recovered if a housing loan is closed before

The commission payable on payment of

each Pension/Family Pension under

In the SBI compensation policy 2011, compensation for which of the

The validity period of a gift card is________

Gift card can be issued to

b) Other than our customer also

Which of the following is true in respect of SBI Express World wide, an

Mission Cyber power is a tie up programme with________

What is the minimum amount of loan for home loan to businessmen

________% of the applicable processing fee would be recovered for each

It has been made mandatory that whenever any property is taken as

The maximum limit of subscription in a year in PPF scheme is_________

Transfer Pricing for Credit products are being linked to

The present Transfer Price rate for SB deposits in rural branches is

The present Transfer Price rate for CA deposits is

The present Transfer Price rate charged for Cash balance is

Which of the following is true in respect of transfer price payable on NPA of

In view of the challenges faced by newly opened branches, a concession of

In view of the challenges faced by newly opened branches, a concession of

Credit information report from two Credit Bureaus is required in respect

Which of the following statements is correct with regard to repayment of

Recently RBI has permitted a resident individual to make a rupee gift to a

Compiled by Shri L.J.Meclarin & Shri V.Devendra Prasad

The Bank is providing Accidental Death Cover free of cost up to an amount

A staff incentive amount of Rs.___ per transaction is paid to operating staff

Campaign for growth W.U business started from ______ to ______

The top functionaries at LHO,AO,RBO and BMS will make themselves

Which of the following accounts will be eligible for unlimited Multicity

As per settlement instructions contained in GMU Kolkata, Branches are to

Campaign for growth W.U business started from to