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Questions and Answers
What does MCQ stand for in the context mentioned in the content?
What does MCQ stand for in the context mentioned in the content?
Multiple Choice Questions
Who wrote the foreword for the Multiple Choice Questions booklet?
Who wrote the foreword for the Multiple Choice Questions booklet?
What key aspect is emphasized as important for growth in the banking industry?
What key aspect is emphasized as important for growth in the banking industry?
Knowledge
Is the Multiple Choice Questions booklet part of an initiative to bridge the knowledge gap in various banking areas?
Is the Multiple Choice Questions booklet part of an initiative to bridge the knowledge gap in various banking areas?
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According to the content, what is mentioned as a significant factor in managing operational risks in banking?
According to the content, what is mentioned as a significant factor in managing operational risks in banking?
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Which of these is not a type of undesirable account?
Which of these is not a type of undesirable account?
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A sleeping partner is one who does not take active part in the management of the business & only contributes to the share capital of the firm. Blocked accounts & unclaimed deposits are kept in which category?
A sleeping partner is one who does not take active part in the management of the business & only contributes to the share capital of the firm. Blocked accounts & unclaimed deposits are kept in which category?
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A method of customer identification by an official of the Bank by undertaking seamless, secure, real-time, consent based audio-visual interaction with the customer is known as?
A method of customer identification by an official of the Bank by undertaking seamless, secure, real-time, consent based audio-visual interaction with the customer is known as?
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In case of Accounts opened using OTP based e-KYC, in non-face-to-face mode the sum of all credits in a financial year should not exceed what amount?
In case of Accounts opened using OTP based e-KYC, in non-face-to-face mode the sum of all credits in a financial year should not exceed what amount?
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Which of these is not a required document for CDD in case of companies?
Which of these is not a required document for CDD in case of companies?
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A General Lien gives power to…………………….
A General Lien gives power to…………………….
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A Promissory Note must contain a promise to pay…………………….
A Promissory Note must contain a promise to pay…………………….
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Printed signatures on ……………………..cheques that are issued by companies in bulk, are acceptable by banks.
Printed signatures on ……………………..cheques that are issued by companies in bulk, are acceptable by banks.
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Endorsement is made on the back of the instrument, or by attaching a slip of paper called…………………….
Endorsement is made on the back of the instrument, or by attaching a slip of paper called…………………….
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When the endorser signs only his name on the back of the instrument, it is termed as a ……….endorsement.
When the endorser signs only his name on the back of the instrument, it is termed as a ……….endorsement.
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Possession of the negotiable instrument is essential to be…………………….
Possession of the negotiable instrument is essential to be…………………….
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Punishment under the section 138 is with imprisonment for a term up to …………...or with fine which may extend to ………..
Punishment under the section 138 is with imprisonment for a term up to …………...or with fine which may extend to ………..
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RBI issues KYC guidelines in exercise of the powers given under section………….of ………………..ACT
RBI issues KYC guidelines in exercise of the powers given under section………….of ………………..ACT
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In case there is a variance in KYC/AML standards prescribed by the Reserve Bank of India and the host country regulators,Banks have to adopt……………………………….
In case there is a variance in KYC/AML standards prescribed by the Reserve Bank of India and the host country regulators,Banks have to adopt……………………………….
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Maximum coverage under free personal accidental cover available in savings bank scheme of our bank is…………….。
Maximum coverage under free personal accidental cover available in savings bank scheme of our bank is…………….。
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WEF 01.10.2019,interest rate on savings bank has been linked to…………..for amounts above ……………….。
WEF 01.10.2019,interest rate on savings bank has been linked to…………..for amounts above ……………….。
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The banker-customer relationship in case of safe deposit lockers is………………………..。
The banker-customer relationship in case of safe deposit lockers is………………………..。
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In the case of partnership accounts, the letter carrying the revocation of STOP Payment instructions must be signed by……………………….of the firm.
In the case of partnership accounts, the letter carrying the revocation of STOP Payment instructions must be signed by……………………….of the firm.
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On receipt of notice of insolvency of ……………………..of the Joint Hindu Family firm, all operations in the account of the Joint Hindu Family firm must be stopped.
On receipt of notice of insolvency of ……………………..of the Joint Hindu Family firm, all operations in the account of the Joint Hindu Family firm must be stopped.
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Insanity of KARTA or coparcener in a HUF will……………………………..HUF.
Insanity of KARTA or coparcener in a HUF will……………………………..HUF.
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In case the loan account is reported under …………...category and higher, the current account opening bank should mandatorily obtain prior NOC/Permission from the lending bank.
In case the loan account is reported under …………...category and higher, the current account opening bank should mandatorily obtain prior NOC/Permission from the lending bank.
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The separate Bank Account for election expenditure can be opened any time, but not later than ………….before the date on which the candidate files his nomination papers.
The separate Bank Account for election expenditure can be opened any time, but not later than ………….before the date on which the candidate files his nomination papers.
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Right of………………is available for time barred debts also.
Right of………………is available for time barred debts also.
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Right of set off is available on the deposit balance held in………………………….
Right of set off is available on the deposit balance held in………………………….
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The NI Act came into force on……………………………..
The NI Act came into force on……………………………..
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The NI Act is having……………sections & ……………chapters.
The NI Act is having……………sections & ……………chapters.
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A bank which is incorporated in a country where it has no physical presence and is unaffiliated to any regulated financial group is known as…………….?
A bank which is incorporated in a country where it has no physical presence and is unaffiliated to any regulated financial group is known as…………….?
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A person designated by the Bank to ensure overall compliance with the obligations imposed under Chapter IV of the PML Act and the Rules is known as…………….?
A person designated by the Bank to ensure overall compliance with the obligations imposed under Chapter IV of the PML Act and the Rules is known as…………….?
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Which of these is not a risk category for customers?
Which of these is not a risk category for customers?
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NPO/NGO promoted by United Nations or its agencies are categorized as…………….?
NPO/NGO promoted by United Nations or its agencies are categorized as…………….?
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A customer who opens an account without visiting the branch or meeting the officials of Bank is known as…………….?
A customer who opens an account without visiting the branch or meeting the officials of Bank is known as…………….?
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Risk category has to be reviewed every…………….in case of High risk customers.
Risk category has to be reviewed every…………….in case of High risk customers.
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The maximum amount of term loan that can be sanctioned is…………….?
The maximum amount of term loan that can be sanctioned is…………….?
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For the limited purpose of address Proof, Utility Bill not more than…………….will be deemed to be OVD.
For the limited purpose of address Proof, Utility Bill not more than…………….will be deemed to be OVD.
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The maximum STTL allowed for any type of customer is…………….?
The maximum STTL allowed for any type of customer is…………….?
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The time limit for sending STR is within…………….days of arriving at the conclusion that the transaction is of suspicious nature.
The time limit for sending STR is within…………….days of arriving at the conclusion that the transaction is of suspicious nature.
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In case of Foreign students, an ……………..account will be opened by banks.
In case of Foreign students, an ……………..account will be opened by banks.
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The First line Manager of the Branch will submit a KYC Compliance Certificate to Regional Office ………….?
The First line Manager of the Branch will submit a KYC Compliance Certificate to Regional Office ………….?
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CKYC has to be introduced by all scheduled commercial banks wef…………….?
CKYC has to be introduced by all scheduled commercial banks wef…………….?
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Central KYC Registry will allot a ….digit number to every customer.
Central KYC Registry will allot a ….digit number to every customer.
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Pending receipt of acknowledgement of Thanks Letter, against which type of credits only, withdrawals should be allowed?
Pending receipt of acknowledgement of Thanks Letter, against which type of credits only, withdrawals should be allowed?
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In case of SHGs, CDD of………………………is required for opening of savings bank account.
In case of SHGs, CDD of………………………is required for opening of savings bank account.
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An account for a PEP (Politically Exposed Person) can be opened……………………….?
An account for a PEP (Politically Exposed Person) can be opened……………………….?
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The presenting banks are required to preserve the physical instruments in their custody securely for a period of ………….?
The presenting banks are required to preserve the physical instruments in their custody securely for a period of ………….?
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As per CTS -2010 Standard, no changes/correction should be carried out on the cheques other than for…………….?
As per CTS -2010 Standard, no changes/correction should be carried out on the cheques other than for…………….?
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Photographs are not insisted in accounts of…………….?
Photographs are not insisted in accounts of…………….?
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A partner of a partnership firm approaches the branch for opening an account in the similar name of the firm with him as a proprietor.
A partner of a partnership firm approaches the branch for opening an account in the similar name of the firm with him as a proprietor.
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Savings bank account should not be opened for ……………..?
Savings bank account should not be opened for ……………..?
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In case of credit, in a running loan/cash credit account, the first item on the debit side of an account is discharged or reduced by the first item on the credit side as per…………….rule.
In case of credit, in a running loan/cash credit account, the first item on the debit side of an account is discharged or reduced by the first item on the credit side as per…………….rule.
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Study Notes
Indian Overseas Bank: Multiple Choice Questions (MCQs) on Banking
Forewords
- The MD & CEO, Executive Directors, and GM HR of Indian Overseas Bank have written forewords to the MCQ booklet, emphasizing the importance of knowledge and skill in banking.
- The forewords highlight the dynamic nature of banking and the need for well-trained staff to manage operational risks.
Multiple Choice Questions (MCQs)
KYC, CKYC, Rights of Banker, General Banking, NI Act
- A bank without a physical presence in a country is known as an Offshore Bank.
- A Designate is a person designated by the bank to ensure overall compliance with the obligations imposed under Chapter IV of the PML Act and the Rules.
- Low Risk customers include NPO/NGO promoted by the United Nations or its agencies.
- A customer who opens an account without visiting the branch or meeting the bank's officials is known as an Online Customer.
- Risk category has to be reviewed every Year in case of High Risk customers.
- The maximum amount of term loan that can be sanctioned for an OTP-based E-KYC account is Rs. 1 lakh.
- Utility bills more than 3 months old are not deemed to be OVD (Officially Valid Documents) for address proof.
- The maximum STTL (Short Term Temporary Loan) allowed for any type of customer is Rs. 50,00,000.
- The time limit for sending an STR (Suspicious Transaction Report) is within 3 days of arriving at a conclusion that the transaction is of a suspicious nature.
- For foreign students, an SB-Student account will be opened by banks.
- The First Line Manager of the Branch will submit a KYC Compliance Certificate to the Regional Office every fortnight.
- CKYC was introduced by all scheduled commercial banks w.e.f. 01.01.2017.
- Central KYC Registry will allot a 14-digit number to every customer.
- Pending receipt of acknowledgment of Thanks Letter, against which type of credits only, withdrawals should be allowed? CASH only.
- In case of SHGs, CDD of all the members is required for opening a savings bank account.
- An account for a PEP (Politically Exposed Person) can be opened with prior permission of the Regional Office.
- The presenting banks are required to preserve the physical instruments in their custody securely for a period of 1 year.
Other Topics
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There are 25 topics covered in the MCQ booklet, including:
- Rights of Banker
- General Banking
- NI Act
- Housing Loan Products
- TDS and GST
- Savings Bank and Current Account
- Capital Gains Account
- Inter-Branch CBS Transactions
- Documents Retention and Handling Policy
- OCAS and Compensation Policy
- Term Deposit and Schemes
- CGTMSE/CGFMU/CGSSI
- Education Loan
- Revival and Rehabilitation of MSME
- Restructuring of Advances and Prudential Accounting Norms
- Risk Management and Rating
- Forex
- Credit Card and Debit Card
- ASBA and Pension Accounts
- Staff Matters and Miscellaneous
- Model Paper### Cheques and Accounts
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No changes or corrections should be made on cheques except for date, signature, and validation amount.
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Photographs are not required for accounts of senior citizens.
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A partner of a partnership firm can open an account in the similar name of the firm with him as the proprietor.
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Savings bank accounts should not be opened for Khadi and Village Industries.
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In case of credit, the first item on the debit side of an account is discharged or reduced by the first item on the credit side as per retaining and selling rule.
Endorsements and Negotiable Instruments
- A Promissory Note must contain a promise to pay money only.
- Printed signatures on cheques that are issued by companies in bulk are acceptable by banks.
- Endorsement is made on the back of the instrument, or by attaching a slip of paper called an allonge.
- When the endorser signs only his name on the back of the instrument, it is termed as a blank endorsement.
- Possession of the negotiable instrument is essential to be holder in due course.
RBI and Banking Regulations
- RBI issues KYC guidelines in exercise of the powers given under section 35A of the RBI Act.
- In case of a variance in KYC/AML standards prescribed by the Reserve Bank of India and the host country regulators, banks have to adopt more stringent standards.
- WEF 01.10.2019, the interest rate on savings bank has been linked to RBI Repo Rate for amounts above 10 lacs.
- The maximum coverage under free personal accidental cover available in savings bank scheme of our bank is 10,00,000.
Account Operations and Management
- General Lien gives power to retain and sell.
- A partner of a partnership firm can open an account in the similar name of the firm with him as the proprietor.
- The banker-customer relationship in case of safe deposit lockers is bailor-bailee.
- In the case of partnership accounts, the letter carrying the revocation of STOP Payment instructions must be signed by all the partners.
- On receipt of notice of insolvency of karta or karta & coparcener of the Joint Hindu Family firm, all operations in the account of the Joint Hindu Family firm must be stopped.
NI Act and Other Regulations
- Punishment under the section 138 of the NI Act is with imprisonment for a term up to 2 years or with fine which may extend to twice the amount of the cheque.
- The NI Act came into force on 01.04.1881.
- The NI Act is having 148 sections and 13 chapters.
- A nominal partner is one who does not take active part in the management of the business & only contributes to the share capital of the firm.
Customer Identification and Account Management
- A method of customer identification by an official of the Bank by undertaking seamless, secure, real-time, consent-based audio-visual interaction with the customer is known as E-CIP.
- In case of Accounts opened using OTP-based e-KYC, in non-face-to-face mode the sum of all credits in a financial year should not exceed 200000.
- Blocked accounts & unclaimed deposits are kept in RIP-1 category.
Special Types of Customers
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Thumb impression of the account holder is required to be attested by one witness.
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How many nominees can be accepted for jointly deposited safe custody of articles? Two.
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Banks which open current accounts without obtaining NOC from the lending bank are liable to be penalized under RBI Act.
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Wherever thumb or toe impression of the sick/old/incapacitated account holder is obtained, it should be identified by one witness known to the bank, one of whom should be a responsible bank official.### Duplicate Demand Draft
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A duplicate draft can be issued to the purchaser up to Rs. 50,000 on the basis of adequate indemnity, without seeking non-payment advice from the drawee office, regardless of the legal position.
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Banks should issue a duplicate demand draft to the customer within a specific timeframe from the receipt of the request:
- Rs. 5,000: 3 days
- Rs. 10,000 to Rs. 20,000: 10 days
- Rs. 50,000: 1 week
- Above Rs. 50,000: 1 fortnight or 1 month
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If there is a delay beyond the stipulated period for issuing a duplicate demand draft, banks are advised to pay interest to compensate the customer for the delay.
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The interest rate for compensation is:
- Bank rate + 2%
- MCLR (Marginal Cost of Funds based Lending Rate) + 1%
- Repo rate + 2%
- 1-year deposit rate + 1%
SPGRS (Customer Complaint Redressal)
- The time limit for redressal of customer complaints under SPGRS is 30 days.
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Test your knowledge of the banking industry with these multiple-choice questions, covering aspects such as risk management, account types, and growth strategies.
