1)

What is the bench-mark to be achieved under Agri. Advances? Banks have to lend 18% of the Adjusted Net Bank Credit to agriculture segment. Out of this, advances under direct agriculture should be 13.5% and the balance of 4.5% may be under indirect advances.

2)

What is NAIS? National Agricultural Insurance Scheme (NAIS) is the revised Crop Insurance scheme introduced by the Govt. of India. It is also known as Rashtriya Krishi Beema Yojana (RKBY).

3) a. Small Farmer : Small farmer is one whose land holdings do not exceed 5 acres of dry or 2.5 acres of wet land. b. Marginal Farmer: Marginal farmer is one whose land holdings do not exceed 2.5 acres of dry land or 1.25 acres of wet land. c. Agricultural labourers: A person without any land other than homestead and deriving more than 50% of his income from agricultural wages as labourers. d. Non-agriculture/ Rural artisans: Residents of the villages 50% of whose income is derived from non-agricultural sources 4) What is Bank Rate ? Ans. Bank rate is a rate at which RBI lends to banks. This lending is done primarily to refinance the loans given to exporters and some other sectors by banks. Bank rate is expressed in terms of percent and depends on the inflation and the credit policy of the central bank of the country, the RBI. 5) What is REPO rate ? Ans. Repo is also known as repurchase agreement or buyback. It is a contract where the seller of securities agrees to buy them back at a specified future date and price. Banks offer government securities and avail of liquidity. The bank pays interest to the RBI for funds availed. The rate, at which the interest is paid, is termed as repo rate. Repo is a means of managing liquidity from the banking system. 6) What is Reverse REPO ? Ans. It is also called reverse repurchase agreement. It is a contract to purchase securities with an agreement to resell the securities at a future date and at a higher price. RBI sells the government securities to banks and the banks park liquid funds with the RBI. RBI pays interest to the banks for the money deposited by the banks. The rate at which the interest is paid is termed as reverse repo

rate. Reverse repo is also a means of managing the liquidity from the banking system. 7) What is CRR ? Ans. CRR - Cash Reserve Ratio is a specified percentage of deposits the banks have to maintain with the RBI in cash or near cash assets. CRR ensures the bank's ability to remain liquid at any moment of time. High CRR ensures low credit creation capacity of the bank and vice versa. It is a lifeline and protective insulators' for a commercial bank (Sec 42 of RBI Act, 1934). 8) What is SLR ? Ans. SLR is a specified percentage of deposits the banks have to maintain with themselves in approved securities. SLR ensures the bank's ability to remain liquid at any moment of time. High SLR ensures low credit creation capacity of the bank and vice versa. It is a lifeline and protective insulators' for a commercial bank (Sec 24 of Banking Regulation Act, 1949). 9) Banking Ombudsman Scheme Ans. The Banking Ombudsman Scheme, 2006 enables resolution of complaints of bank customers relating to certain services rendered by banks The Scheme has come into force from January 1, 2006. The Banking Ombudsman is person appointed by the Reserve Bank of India to redress customer complaints against certain deficiency in banking services. 10) What is Financial Inclusion ? Ans. Financial inclusion is defined as delivery of Banking services, at an affordable cost to vast sections of the disadvantaged and the downtrodden groups, especially in the rural areas. In other words, it aims at providing access to savings, payment and remittance facilities, loans, insurance, etc. by the formal financial system to those who are excluded. 11) Write short notes on RTGS. Ans. Real Time Gross Settlement (RTGS) system, introduced in India since March 2004, is a system through which electronic instructions can be given by banks to transfer funds from their account to the account of another bank. The RTGS system is maintained and operated by the RBI and provides a means of efficient and faster funds transfer among banks facilitating their financial operations. As the name suggests, funds transfer between banks takes place on a real time basis. Therefore, money can reach the beneficiary instantaneously and the beneficiarys bank has the responsibility to credit the beneficiarys account within two hours.

12) What are Firewalls? They are components or set of components that restrict access between a protected network and the outside world, i.e., Internet. 19) Guidelines expanded by RBI regarding Scope of willful default. Ans. Willful defaulters misuse the banking facilities and it result into non availability of credit facilities to other borrowers due to resources constraints. Pursuant to a Supreme Court order in case of Common Cause Vs. Union of India, to expand the scope of definition of willful default, RBI has included those borrowers also who have defaulted in payment obligation and have disposed of or removed the movable fixed assets or immovable property without the knowledge of the bank/lender. 20) Doorstep banking Ans. In order to ensure transparency in respect of the rights and obligations of customers, uniformity in approach and to clearly delineate the risks involved, RBI has advised the general principles and broad parameters to be followed by banks while offering Doorstep services to their customers. In accordance with these guidelines, banks can now offer Doorstep banking services which should be reviewed by the Boards of Banks. Under this banks offer the following services to corporate customers and others : a) pick up of cash b) pick up of instruments c) deliver cash/draft either through own employees or through agents. 21) DIR Scheme - latest developments Ans. To be eligible, the annual income of the family should not exceed Rs. 24,000/- in urban and semi-urban areas and Rs. 18,000/- in rural areas (as per recent guidelines). Rs.15,000/- as TL or WC or both

- Rs.20,000/- for Housing and also for Physically Handicapped (Rs.5,000/for purchase of artificial limbs in addition to Rs.15,000) Repayment period is fixed depending upon the income generated to the extent of maximum 5 years including gestation period. 22) What are the categories in High-tech Agriculture? High-tech Agricultural Projects are broadly classified into three categories: i. Bio-tech projects,

ii. iii.

Hi-tech agricultural production projects, Post harvest and processing projects.

23) What are Bio-tech projects? a. Tissue culture, b. Floriculture c. Hybrid seeds d. Apiculture e. Food processing f. Animal vaccines g. Acquaculture, h. Bio-mass utilization, i. Industrial enzymes j. New bio-products. 24) What are Hi-tech agricultural production projects? i. Drip and sprinkler irrigation ii. Controlled environment agri. Production iii. Hydroponics iv. Un-conventional agricultural products 25) What are post harvest & processing projects? A. Cold storages B. Marine Food Processing C. Meat/poultry processing units D. Manufacture of malted food E. Manufacture of resins. F. Improved packaging. 26) how many types of tests are done for checking purity of gold? 1. Touch stone method. 2. Nitric acid test. 3. specific gravity test. 27) What is risk management ? Ans. Risk is the potential loss of an asset or a portfolio which may likely to suffer due to variety of reasons. Risk is inherent in all business but the risk exposure is much more in the financial activity. Risk Management may be defined as process of identifiying, measuring and controlling all kinds of risks. 28) Describe Risk Focused Internal Audit (RFIA) Ans. Risk Focused Audit provides checks and balances to risk management and control system. It reduces vulnerability. It serves as an important inputs for risk profiling. Risk is a fundamental element that influences financial behavious. Financial decisions depend upon risk management.

29) Latest cirucular guidelines of visually challenged persons Ans. Single/joint both OSB and SSB. Self operate the account on his own risk by furnishing an undertaking to the bank. Every cheque leaf and entire cheque book should contain stamping CARE DEPOSITOR VISUALLY IMPAIRED. Postdated cheques for periodic payment for retail loans, utility bills etc. but specimen signature should be attested by the Official. No third party cash payment 30) INCOME TAX ACT, 1961 Sec 194 A Tax Deducted at Source Sec 269 T TDR cash payment - no cash payment of TDR of Rs.20,000 and above 31) NEGOTIABLE INSTRUMENTS ACT 1881 32) 1. SLR 24% 2. CRR 5% 3. BANK RATE 6% 4. SLR ON NRE DEPOSITS 25% 5. REPO 4.75% 5. REVERSE REPO 3.25% 6. INTEREST RATE ON SB 3.5% 7. MIN WITHDRAWALA H/Y in SB 30 12. TIME DEPOSIT ON WHICH TDS IS NOT APPLICABLE RD 13. MAX DEPOSIT IN TAX SAVER SCHEME Rs.1 LAC 14. UPTO WHAT EXTENT LOAN CAN BE SANCTIONED ON TAX SAVER SCHEME NO LOAN FACILITY 15. TDS %GE OF INTEREST 10% Sec 138 Bouncing of cheques criminal offence punishable under this Law Sec 142 to 147 : PENALTIES : Fine up to twice the amount of cheque And / or Imprisonment upto two years

33) RBI DIRECTED BANKS TO APPLY INTEREST ON DAILY PRODUCTS FOR SB A/CS with effect from 01/04/2010 34) As per RBI guidelines, ATM problem of cash not dispense but account debited should be resolved within 12 days

35) RI Act The Act has come into effect from 12.10.2005. The Right to Information under this Act is meant to give to the citizens of India access to Information under control of public authorities to promote transparency and accountability in these organizations. Banks are covered under RI Act.

Q.No.1 Statutory provision for SLR is under which Act? A) Sec 42 of RBI Act B) Sec 42 of BR Act C) Sec 24 of RBI Act D) Sec 24 of BR Act

Ans: D Q.No.2 Absorption of funds by RBI from Commercial Banks through money market instrument is known as--------? Reverse Repo Q.No.3 Ombudsman Scheme is formulated under Sec 35 A of ---------------Act Banking Regulation Q.No.4 Expand CGFTMSE Credit Guarantee Fund Trust for Micro Small Enterprises Q.No.5 Direct Agriculture is what % of total agricultural advances under Priority Sector 75% Q.No.6 Which section of BR Act deals with Nomination for Safe custody lockers ?
Ans: Sec 45ZE & 45ZF Q.No.7 Max. No. of Partners in a Non-banking Partnership firm 20 Q.No.8 Max Income ceiling for DIR advance in Urban area is Rs.-----------? 24,000/Q.No.9 What is the max. income ceiling for PMEGP loans? No ceiling Q.No.10 XOS statement relates to---------- Overdue export bills Q.No.11 Max Loan against security of NRE/FCNR deposit

 Rs.100-00 lacs Q.No.12 Under Nayak Committee, How much % of working capital to be considered by Bank? 20% of PATO Q.No.13 Charge with Roc is to be created in respect of Companies within --------- days from the date of its creation as per ---------------Act 30 ; Sec 125 of Companies Act Q.No.14 Banks exposure to an individual Corporate borrower should not exceed ------% of its capital funds 15 Q.No.15 Collateral Security is waived for Micro and Small enterprises with satisfactory track record for limits up to-------- Rs.50-00 lacs Q.No.16 FFR statement should be submitted by the borrowers enjoying working capital limits of Rs.---------& above Rs.1-00 crore and above Q.No.17 Borrowing Powers of the Board of Directors of a limited company will be covered in which document? Articles of Association Q.No.18 Prepaid expenses will be classified under which head of the Balance Sheet Current Assets Q.No.19 Match the following: 1. Goods a) Lien 2. Term Deposits b) Mortgage 3. Shares c) Pledge 4. LIC Policies d) Transfer 5. Immovables e) Assignment Ans: C, A, D, E, B Q.No.20 The repaying capacity / period of a term loan is determined by which ratio? DSCR Q.No.21 What is the banker customer relationship in respect of safe custody of articles Bailee-Bailor Q.No.22

 What is the investment in equipment criteria in respect of small services enterprises? >Rs.10-00 lacs and Upto Rs.2-00 crores Q.No.23 What is the annual service fee payable to CGFTMSE in respect of loans upto Rs.5-00 lacs 0.5% of the sanctioned limit Q.No.24 What is capital adequacy ratio? Capital funds / Total risk weighted assets Q.No.25 What is the max. finance under PMEGP Scheme? Rs.25-00 lakhs Q.No.26 Under simplified KYC, the total credit in all the accounts taken together should not exceed Rs---------- in a year Rs.1,00,000/Q.No.27 What is negative lien? It is a letter wherein a company undertakes not to create any charge on its unencumbered assets without prior permission from Bank. Q.No.28 Minimum claim that can filed with DRT is Rs.--------lacs: Rs.10 lakhs Q.No.29 Discuss the position of a banker, who pays cheque dated 15.03.2008, paid on 15.09.2008? Banker is held liable as the cheque became stale after 6 months from the date of issue. Q.No.30 Credit limits to dealers in irrigation systems is considered as priority sector upto -----------limits. Rs.30-00 lakhs Q.No.31 The premium for PAIS (Personal Accident insurance scheme) for KCC farmer is shared between banker and customer in the ratio of : 2:1 Q.No.32 Which of the following accounts has a TDS: A) NRE B) FCNR(B) C) NRO D) None Ans: C Q.No.33 As per Basel II, RBI recommended the ----------------approach for operational risk

 Basic Indicator approach Q.No.34 Max. ceiling of members in a Public Ltd. Co.? Unlimited Q.No.35 Best Practice code Guidelines of RBI are based on the recommendations of: Mitra Committee
Q.No.36 In NPA classification an account moves from standard to loss category directly when: There is loss of security of 90% or more Q.No.37 In SARFAESI, if the borrower raises any objections, bank has to reply within----------days 7 days Q.No.38 Information must be provided under RTI Act within -----------days 30 days Q.No.39 The Banking Ombudsman can award compensation up to ______amount? Rs.10-00 lakhs. Q.No.40 Your branch has issued a FDR of Rs.1.50 lacs payable to Mr.N.D.Patel and Mrs.Patel payable to E or S maturing on 01.06.09. Mrs.Patel approaches you in July 08 to extend the period by 6 months. What will you do? The FDR is issued in joint names. Hence, any change in the terms of the receipt must be made after obtaining the consent of both of them. The term E or S is applicable at the time of maturity of the deposit and not earlier. Q.No.41 What is Tangible Networth? Capital+Reserves+Surplus-Intangible assets Q.No.42 What is Net Working Capital? CA-CL i.e., excess of Current Assets over the Current Liabilities is known as Net working capital / liquid surplus / Margin on Working capital