The following post contains the Multiple Choice Questions (MCQ) and Answers on General Banking. This might be useful for the candidates who prepare for Banking and other competitive exams. And, it also be useful for the banker who wish to appear for promotion. If you want to improve your banking knowledge read the following MCQ and its answer carefully. These are commonly asked questions in IBPS (Institute of Banking Personnel Selection), SBI, RBI and other competitive exams.
Multiple Choice Questions on General Banking
1. What are the areas assessed under Business Risk?
- a. Credit Risk & Liability Risk
- b. Operational Risk
- c. Earning Risk
- d. All the above
2. The main reason for slippage of Branch gradation from Low to Medium or High is because of
- a. Operational Risk
- b. Compliance Risk
- c. Internal Risk
- d. Credit Risk
3. What is the periodicity of RBIA at various levels of Composite Risk?
- a. High Risk – 6 months, Moderate risk – 12 months
- b. Low Risk – 18 months
- c. Normal Risk – 15 months
- d. All the above
4. What is MAP drawn by banks to mitigate risks in Risk Based Internal Audit (RBIA)?
- a. Managing Ability Plan
- b. Monitorable Action Plan
- c. Money Action Plan
- d. Management Audit Progress
5. Main component under Operational Risk
- a. People & Process
- b. Technology & Reputation
- c. Out sourcing & exceptional information
- d. All the above
6. Areas under assessment in respect of Management Risk under Control Risk?
- a. Business Strategy
- b. Branch Management
- c. Both a & b
- d. Profitability of Branch
7. Payment of Legal expenses in respect of suit claims to be debited to
- a. General Charges
- b. Sundry Assets
- c. Borrower account
- d. Commission Misc
Locker or Safe Custody
8. In the event of death of any of the joint hirers of lockers with “Operation under Joint signature clause“, where there is a nomination available, branch should give access of the locker to
- a. Survivor alone can operate
- b. No operations allowed
- c. Legal hearers are to called to settle
- d. Jointly to the survivor and nominee
9. How many nominations can be there in Safe Custody Service?
- a. 1
- b. 4
- c. 2.
- d. not accepted
10. In the case of Safe Custody service, the relationship between the customer and the banker is that of
- a. Banker & Customer
- b. Bailor & bailee
- c. Lessor and lessee
- d. Principal & Trust
11. As per latest RBI guidelines, obtaining Legal Entity Identifier (LEI) code is mandatory for all the RTGS and NEFT transactions undertaken by the Non individual customers for a value of transaction above?
- a. Rs. 5 crore
- b. Rs. 25 crore
- c. Rs. 100 crore
- d. Rs. 50 crore
12. RBI has created Payments Infrastructure Development Fund (PIDF) with a main intension to subsidise deployment of payment acceptance infrastructure in?
- a. Tier 1 to Tier 3 cities
- b. Tier-3 to Tier-6 centers with special focus on North-Eastern States
- c. Tier 1 to Tier 6 centers with special focus on North-Eastern States
- d. None of the above
13. As per latest RBI guidelines, banks are advised to appoint Head of Internal Audit (HIA) for a minimum period of?
- a. 3 years
- b. 5 years
- c. 2 years
- d. 1 year
14. Which of the following statement with respect to ‘Internal Audit Function’ of the bank is not appropriate?
- a. The remuneration of internal audit team should not be directly linked to the financial performance of the bank or departments audited.
- b. The internal audit function can be outsourced depending on the requirement of the bank.
- c. The HIA shall directly report to either the Audit Committee of the Board (ACB) / MD & CEO or Whole Time Director (WTD).
- d. Banks should ensure that internal audit function has the requisite skills to audit all areas of the bank.
15. With respect to recovery of excess pension paid to the pensioners, banks to follow the operational instructions with regard to the recovery as issued by?
- a. RBI
- b. SEBI
- c. Ministry of Finance
- d. Respective Pension Sanctioning Authorities
16. Which of the following is not a Domestic Systematically Important Bank in India as per the latest list of D-SIBs released by RBI?
- a. SBI
- b. AXIS Bank
- c. HDFC Bank
- d. ICICI Bank
17. Which of the following is considered as a ‘Base Period’ for the RBI-Digital Payments Index which is released recently?
- a. March 2020
- b. September 2019
- c. March 2018
- d. April 2019
18. Which of the following parameters is not considered by RBI while releasing Digital Payment Index?
- a. Payment Enablers
- b. Consumer Centricity
- c. Profitability of the service providers
- d. Payment Performance
19. Who among the following has been recently appointed as Chairperson of the ‘College of Supervisors’ constituted by RBI?
- a. Shri N.S. Viswanathan
- b. Shri Kungaro
- c. Smt. Subbulakshmi Panse
- d. Shri. Kris Gopalakrishnan
20. As per the new standard General Insurance policies introduced by IRDAI, Bharat Laghu Udyam Suraksha Policy covers enterprises where the total value at risk is in the range of?
- a. Upto Rs. 5 crore
- b. Rs. 5 crore to Rs. 20 crore
- c. Rs. 5 crore to Rs. 100 crore
- d. Rs. 5 crore to Rs. 50 crore
21. Under Bharat Griha Raksha Policy recently introduced by IRDAI, the policy covers General Home Contents automatically (without any need for declaration of details) for 20% of the Sum Insured for
the Building subject to a maximum cover of?
- a. Rs. 10 lakhs
- b. Rs. 25 lakhs
- c. Rs. 100 lakhs
- d. Rs. 50 lakhs
22. Who among the following has been appointed as Chairman of the Working Group recently constituted by RBI to suggest adequate regulatory approach on digital lending including lending through
online platforms and mobile apps?
- a. Shri Kungaro
- b. Smt. Subbulakshmi Panse
- c. Shri. V Vasudevan
- d. Shri Jayant Kumar Dash
23. Which of the following department of Government of India has recently introduced ‘Liberalised Authorised Economic Operator (AEO) Package for MSMEs’ which provide of faster Customs clearances and other related benefits to them?
- a. Department of Customs
- b. Central Board of Indirect Taxes & Customs (CBIC)
- c. Department of MSMEs
- d. Department of Economic Affairs
24. SoftBank Group is a major investor in many of the startups in India has its origin from?
- a. China
- b. USA
- c. Japan
- d. South Korea
25. As per THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016, a builder or developer needs to register the project with Real Estate Regulatory Authority (RERA), if __?
- a. Number of apartments is more than 8 or the total area developed is more than 500 square meters.
- b. Number of apartments is more than 10 or the total area developed is more than 500 square meters.
- c. Number of apartments is more than 8 or the total area developed is more than 600 square meters.
- d. Number of apartments is more than 15 or the total area developed is more than 500 square meters.
26. Which of the following is not the role of CISO in a bank?
- a. articulating and enforcing the policies that banks use to protect their information assets among various stake holders.
- b. Handling security related issues / implementation within the organization as well as relevant external agencies.
- c. Implementation of IT strategy, value delivery, risk management, IT resource and performance management.
- d. All the above
- e. Only (a) & (b)
27. Which of the following corporate house has recently won the bid to acquire the troubled Housing Finance Company DHFL Ltd?
- a. TATA group
- b. Reliance Group
- c. Piramal Group
- d. Aditya Birla Group
28. Government fixes minimum support price on crops as per the recommendations of?
- a. Commission for Agricultural Costs and Prices (CACP)
- b. Commission for Agricultural outputs
- c. State Level Technical Committee
- d. NABARD
29. Which of the following is the international organization that brings together the world’s securities regulators, covering more than 95% of the world’s securities markets, and is the Global standard setter for the securities sector is?
- a. IMF
- b. International Securities Council
- c. International Organization of Securities Commissions
- d. World Securities Association
30. The rate of applicable rebate under Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme is being notified by?
- a. DGFT
- b. Department of MSME
- c. Respective State Governments
- d. Department of Commerce