Kisan Credit Card - 15 Mints Seminar Notes

The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks.

This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of R.V.GUPTA committee to provide term loans for agricultural needs. The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks.

This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of R.V.GUPTA committee to provide term loans for agricultural needs.

Objective:

Its objective is to meet the comprehensive credit requirements of the agriculture sector and by 2019 for fisheries and animal husbandry by giving financial support to farmers.

Participating institutions include all commercial banks, Regional Rural Banks, and state co-operative banks.

Insurance benefit:

The scheme has short term credit limits for crops, and term loans. KCC credit holders are covered under personal accident insurance up to ₹50,000 for death and permanent disability, and up to ₹25,000 for other risk.

Kisan Credit Card (KCC) offering credit to the farmers in two types viz, 1. Cash Credit 2. Term Credit (for allied activities such as pump sets, land development, plantation, drip irrigations).

Credit limitation:

Farmers can take out a loan of up to Rs. 3 lakhs and also avail produce marketing loans.

Interest rate comparison:

Banks providing Kisan Credit Cards    

Kisan Credit Card Interest Rate    Initially 7% p.a.

SBI Kisan Credit Card    Min. 2% p.a.

PNB Kisan Credit Card    Min. 4% p.a.

HDFC Bank Kisan Credit Card    Max.  16.69% p.a. | Min. 9% p.a.

Axis Bank Kisan Credit Card    8.85%, interest subvention provided

Maha bank Kisan Credit Card    Min. 7%

Indian Overseas Bank Kisan Credit Card    7% | interest subvention provided

UCO Bank    7% | interest subvention provided

Age limit /Criteria:

Age should be a minimum of 18 years of age and be a maximum age of 75 years. If you are a senior citizen, then it is mandatory to have a co-borrower who is a legal heir

Eligibility:

The applicants must be able to pool out a production credit of Rs. 5,000 or more to become eligible for the KCC. The KCC can be availed of for crop production, non-farm activities or other allied undertakings.

Documents required to apply KCC :

Applying for Kisan Credit Card has some documentation requirements for Kisan Credit Card. Here is a list of documents that you have to keep ready so that you can begin with the application in an easy and hassle-free manner.

•    Completely filled and signed application form

•    ID Proof such as PAN card, Aadhar Card, Driver’s license, Passport, Voter’s ID, etc.

•    Address Proof such as your Ration cars, utility bills from the previous 3 months, PAN card, Aadhar Card, Driver’s license, Passport, Bank account statement, Voter’s ID, etc.

•    Passport size photograph of the applicant

•    Land documents

•    Other documents like security PDC in case it is requested by the bank.

Validity:

The premium is borne by both the bank and borrower in a 2:1 ratio. The validity period is five years, with an option to extend for up to three more years.

Presented by

Bhuvaneswari

Banking Student

Magme School of Banking

Types of Cheque - 15 Mints Seminar Notes

In this article, we shall discuss in detail what is a cheque, various types of cheques that are issued in the Indian banking system and what are the features of each of them.

Cheque Types:

1. Bearer Cheque
2. Order Cheque
3. Crossed Cheque
4. Account Payee Cheque
5. Stale Cheque
6. Post Dated Cheque
7. Ante Dated Cheque
8. Self Cheque
9. Traveler’s Cheque
10. Mutilated Cheque
11. Blank Cheque

Cheque

A cheque is a piece of document/paper which orders the bank to transfer money from the bank account of an individual or an Organisation to another bank account.

The person who writes the cheque is called the “drawer” and the person in whose name the cheque has been issued is called the “payee”. The amount of money that needs to be transferred, payee’s name, date and signature of the drawer are all mentioned in a cheque.

There are certain points to remember regarding Cheques which are mentioned below:

1. Cheque can only be issued against a current or savings bank account

2. A cheque without date shall be considered invalid

3. Only the payee, in whose name the cheque has been issued, can encash it

4. A cheque is only valid 3 months from the date it has been issued

5. A 9-digit MICR (Magnetic Ink Character Recognition) code is mentioned at the bottom of the cheque. This makes the clearance of cheques easier for the banks.

Bearer Cheque

The bearer cheque is a type of cheque in which the bearer is authorised to get the cheque encashed. This means the person who carries the cheque to the bank has the authority to ask the bank for encashment.

This type of cheque can be used for cash withdrawal. This kind of cheque is endorsable. No kind of identification is required for the bearer of the cheque.

For example: A cheque has been signed by Arjun (drawer) and the payee for the cheque is Varun. Varun can either go himself to the bank or can send a third person to get encashment for the cheque. No identification shall be required for the bearer’s name.

If a person does not want their cheque to be endorsable, they can strike off the “OR BEARER” option mentioned in the cheque.

Order Cheque

This type of cheque cannot be endorsed, i.e., only the payee, whose name has been mentioned in the cheque is liable to get cash for that amount. The drawer needs to strike the “OR BEARER” mark as mentioned on the cheque so that the cheque can only be encashed to the payee.

For Example: If a cheque has been signed with the name of Varun, then only the payee can visit the bank to get an encashment for the same for a order cheque.

The payee’s identity may be cross-checked by the bank before encashing the sum of money.

Crossed Cheque

In this type of cheque, no cash withdrawal can be done. The amount can only be transferred from the drawer’s account to the payee’s account. Any third party can visit the bank to submit the cheque.

In case of a crossed cheque, the drawer must draw two lines at the left top corner of the cheque.

Account Payee Cheque

This is the same as the account payee cheque but no third party involvement is required. The amount shall be transferred directly to the payee’s account number.

To ensure that it is an account payee cheque, two lines are made on the left top corner of the cheque, labelling it for “A/C PAYEE”.

Stale Cheque

In India, any cheque is valid only until 3 months from the date of issue. So if a payee moves to the bank to get withdrawal for a cheque which was signed 3 months ago, the cheque shall be declared a stale cheque.

For example: If a cheque is dated January 1, 2021, and the payee visits the bank for withdrawal on May 1, 2021, his/her request shall be denied and the cheque is declared stale.

Post Dated Cheque

If a drawer wants the payee to apply for withdrawal or transfer of money after the present date, then he/she can fill a post dated cheque.

For example: If the date on which the drawer is filling the cheque is May 10, 2021, but he wants the payment to be done later, he/she can fill the cheque dates as May 30, 2021. It shall be called a post-dated cheque.

Ante Dated Cheque

If the drawer mentions a date prior to the current date on the cheque, it is called ante dated cheque.

For example: If the current date is January 30, 2021, and the drawer dates the cheque as January 1, 2021. It shall be considered as an ante-dated cheque.

Self Cheque

If the drawer wishes cash for himself he can issue a cheque where in place of the Payee’s name he can write “SELF” and get encashment from the branch where he owns an account.

For example: If a person wants Rs.1,00,000/- in cash, he can issue a self cheque and visit his bank branch where he owns an account and get encashment in place of a cheque.

Traveller’s Cheque

As the name suggests, the Traveler’s cheque can be used when a person is travelling abroad where the Indian currency is not used.

If a person is travelling abroad, he can carry the traveller’s cheque and get encashment for the same in abroad countries.

Mutilated Cheque

If a cheque reaches the bank in a torn condition, it is called a mutilated cheque. If the cheque is torn into two or more pieces and the relevant information is torn, the bank shall reject the cheque and declare it invalid, until the drawer confirms its validation.

If the cheque is torn from the corners and all the important data on the cheque is intact, then the bank may process the cheque further.

Blank Cheque

When a cheque only has a drawer’s signature and all the other fields are left empty, then such a type of a cheque is called a blank cheque.

The above-mentioned types of cheques are the most commonly known and used in the Indian banking industry. Let us now know the parties associated with a cheque.

Number of Parties involved with a Cheque

There are three parties involved to a cheque.

1. Drawer or Maker – drawer of the cheque is the customer or account holder who issues the cheque.

2. Drawee – Drawee is basically the bank on which the cheque is drawn. Remember that a cheque is always drawn on a particular banker.

3. Payee – This is the person who is named in the cheque and gets the payment for the amount mentioned in the cheque. In particular cases (when the drawer writes a self-cheque), the drawer and the payee can be the same individual.

Apart from these three, there are two more parties involved with a cheque –

1. Endorser: When a party i.e. payee transfers his right to take the payment to another party, he/she is called endorser.

2. Endorsee: The party in whose favour, the right is transferred, is called endorsee.

Presented by

Prathima

Banking student

Magme School of Banking

 History of Indian Banking - 15 Mints Seminar Notes

Banking in India forms the base for the economic development of the country. Major changes in the banking system and management have been seen over the years with the advancement in technology, considering the needs of people.

The History of Banking in India dates back to before India got independence in 1947 and the evolution of the banking sector in India.

The banking sector development can be divided into three phases:

Phase I: The Early Phase which lasted from 1770 to 1969

Phase II: The Nationalisation Phase which lasted from 1969 to 1991

Phase III: The Liberalisation or the Banking Sector Reforms Phase which began in 1991 and continues to flourish till date

Pre Independence Period (1786-1947)

The first bank of India was the “Bank of Hindustan”, established in 1770 and located in the then Indian capital, Calcutta. However, this bank failed to work and ceased operations in 1832.

During the Pre Independence period over 600 banks had been registered in the country, but only a few managed to survive.

Following the path of Bank of Hindustan, various other banks were established in India. They were:

•    The General Bank of India (1786-1791)
•    Oudh Commercial Bank (1881-1958)
•    Bank of Bengal (1809)      
•    Bank of Bombay (1840)    
•    Bank of Madras (1843)   

During the British rule in India, The East India Company had established three banks: Bank of Bengal, Bank of Bombay and Bank of Madras and called them the Presidential Banks. These three banks were later merged into one single bank in 1921, which was called the “Imperial Bank of India.”

The Imperial Bank of India was later nationalised in 1955 and was named The State Bank of India, which is currently the largest Public sector Bank.

Given below is a list of other banks which were established during the Pre-Independence period:

Post Independence Period (1947-1991)

At the time when India got independence, all the major banks of the country were led privately which was a cause of concern as the people belonging to rural areas were still dependent on money lenders for financial assistance.

With an aim to solve this problem, the then Government decided to nationalise the Banks. These banks were nationalised under the Banking Regulation Act, 1949. Whereas, the Reserve Bank of India was nationalised in 1949.

Following it was the formation of State Bank of India in 1955 and the other 14 banks were nationalised between the time duration of 1969 to 1991. These were the banks whose national deposits were more than 50 crores.

Given below is the list of these 14 Banks nationalised in 1969:

1.    Allahabad Bank               
2.    Bank of India                          
3.    Bank of Baroda
4.    Bank of Maharashtra         
5.    Central Bank of India
6.    Canara Bank         
7.    Dena Bank
8.    Indian Overseas Bank
9.    Indian Bank
10.    Punjab National Bank                         
11.    Syndicate Bank             
12.    Union Bank of India
13.    United Bank
14.    UCO Bank

In the year 1980, another 6 banks were nationalised, taking the number to 20 banks. These banks included:

1.    Andhra Bank
2.    Corporation Bank
3.    New Bank of India
4.    Oriental Bank of Comm.
5.    Punjab & Sind Bank
6.    Vijaya Bank

Apart from the above mentioned 20 banks, there were seven subsidiaries of SBI which were nationalised in 1959:

1.    State Bank of Patiala
2.    State Bank of Hyderabad
3.    State Bank of Bikaner & Jaipur
4.    State Bank of Mysore
5.    State Bank of Travancore
6.    State Bank of Saurashtra

7.    State Bank of Indore

All these banks were later merged with the State Bank of India in 2017, except for the State Bank of Saurashtra, which merged in 2008 and State Bank of Indore, which merged in 2010.

Impact of Nationalisation

There were various reasons why the Government chose to nationalise the banks. Given below is the impact of Nationalising Banks in India:

•  This lead to an increase in funds and thereby increasing the economic condition of the country

•   Increased efficiency

•    Helped in boosting the rural and agricultural sector of the country

•    It opened up a major employment opportunity for the people

•    The Government used profit gained by Banks for the betterment of the people

•    The competition decreased, which resulted in increased work efficiency

This post Independence phase was the one that led to major developments in the banking sector of India and also in the evolution of the banking sector. 

Presented by

Swopa

Banking Student 

Magme School of Banking

Banking Awareness MCQs Part  35 

1. Paisalo Digital Limited ,recently signed its co-origination loan agreement with the ______.
1) Bank of Maharashtra
2) Bank of Baroda
3) Central Bank of India
4) Allahabad Bank
5) None of these
correct option : 1

2. What is called for an insurance that is purchased by an insurance company, in which some part of its own insurance liabilities is passed on to another insurance company?
1) Co-insurance
2) Re-insurance
3) Trade credit insurance
4) Liability insurance
5) Renters insurance
correct option : 2

3. Which mobile manufacturer launched an offline digital lending platform with instant offers for their smartphones?
1) Samsung
2) Oppo
3) Motorola
4) Lenovo
5) Nokia
correct option : 1

4. Which bank recently launched its digital app in UK at an event hosted in coordination with the UK India Business Council?
1) Union bank
2) Syndicate bank
3) State bank of India
4) Canara bank
5) Indian Bank
correct option : 3

5. SBI life insurance signed agreement with which home finance company to offer its insurance products to home finance companies’ customers?
1) HDFC Housing Finance
2) Repco Home Finance
3) LIC Housing Finance
4) ICICI Home Finance
5) None of these
correct option : 2

6. Which is the insurance policy best suited for an individual who owns many restaurants at different locations to cover all his stores under one policy?
1) Liability policy
2) General policy
3) Trade credit policy
4) Blanket policy
5) Multi risk policy
correct option : 4

7. What is the net owned fund requirements for HFC in order to get registered with NHB?
1) Rs. 2 crore
2) Rs. 5 crore
3) Rs. 10 crore
4) Rs. 25 crore
5) Rs. 50 crore
correct option : 3

8. If RBI raises CRR (Cash Reserve Ratio) what impact will it have on economy?
1. Banks will have to increase interest rates on Loans.
2. Leads to the increase in cash flow in the economy.
3. Banks will have to give more funds to priority sector lending.
1) Only 2
2) Only 1
3) Both 1 & 3
4) Both 2 & 3
5) All 1, 2 & 3
correct option : 2

9. What is the maturity age of Whole life Insurance policy?
1) 50 years
2) 60 years
3) 75 years
4) 100 years
5) None of these


10. Preauthorization is needed in which type of insurance?
1) Motor Insurance
2) Travel Insurance
3) Home Insurance
4) Health Insurance
5) Fire Insurance

Banking Awareness MCQs Part 34  

1. CVV code provides an additional layer of security when a card is used to make a purchase online or over the phone. What is the full form of CVV?
1) Customer Verification Value
2) Card Valuable Value
3) Card Validity Variable
4) Customer Verification Variable
5) Card Verification Value


2. Which of the following statements is NOT true in context of Annuity?
1) An annuity is an investment that we make, either in a single lump sum or through instalments paid over a certain number of years
2) All of these
3) Typically annuities are bought to generate income during one’s retired life
4) Annuity premiums and payments are fixed with reference to the duration of human life
5) An annuity provide life insurance cover


3. Mswipe has tied up with which finance firm to launch a card for millennials to avail instant pre-approved credit of up to ?1 lakh?
1) DMI Finance
2) Aditya Birla Capital
3) SBI Capital Markets
4) L& T Finance Holdings
5) Bajaj Capital


4. Which is the most valued Indian brand according to the `WPP and Kantar Millward Brown's BrandZ 75 Most Valuable Indian Brands' ranking?
1) Life Insurance Corporation of India
2) Tata Consultancy Services
3) Maruti Suzuki
4) Indian Oil Corporation
5) HDFC


5. What is an “insurance actuary” in the insurance sector means?
1) The premiums on all policies which a company has issued
2) A professional that analyses financial risk using various theories
3) Insurers that are created and wholly–owned by one or more non–insurers
4) Method of sharing insurance risk between several insurers
5) Form of protection for an employer for the losses caused by his employees.


6. Hyundai Motor India Ltd (HMIL) has signed an agreement with which bank for its vehicle finance needs?
1) Central Bank of India
2) Bank of Baroda
3) United Bank of India
4) Indian Bank
5) Allahabad Bank


7. Which among the following is the market where fixed income securities of various types and features are issued and traded?
1) Money Market
2) Debt Market
3) Capital Market
4) Futures Market
5) Prediction Market


8. DICGC (Deposit Insurance and Credit Guarantee Corporation) is one of the wholly owned subsidiaries of the Reserve bank of India (RBI). What is the maximum deposit amount insured by the DICGC?
1) Four Lakhs
2) One Lakh
3) Two Lakhs
4) Six Lakhs
5) Three Lakhs


9. Which bank launched a co-branded fuel card in partnership with Indian Oil Corporation (IOC)?
1) Axis
2) ICICI
3) HDFC
4) Yes Bank
5) HSBC


10. The RTGS system is primarily meant for large value transactions. What is the minimum amount to be remitted through RTGS (Real Time Gross Settlement)?
1) 1,00,000 Rs
2) 2,00,000 Rs
3) 3,00,000 Rs
4) 4,00,000 Rs
5) 5,00,000 Rs

1. Foreign Institutional Investors must register with which of the following organizations in India to participate in the market?
1) NHB
2) RBI
3) SEBI
4) SIDBI
5) IRDAI


2. Atal Pension Yojana was introduced for which of the following sectors by the government?
1) Normal Sector
2) Informal Sector
3) Formal Sector
4) Organized sector
5) Unorganized sector


3. Which of the following type of risk is defined when a bank may not be able to undertake profitable business opportunities when it arises?
1) Funding Risk
2) Interest Risk
3) Time Risk
4) Call Risk
5) Structural Risk


4. Which among the following is called as State Development Loans?
1) Promissory notes
2) Dated Securities
3) Treasury Bills
4) Bill of Exchange
5) Commercial Papers


5. Finance Minister N Sitharaman announced that all scheduled banks would hold gatherings in a total of how many districts for loan disbursement process?
1) 350
2) 200
3) 300
4) 400
5) 100


6. __________ ,recently decided to link all the floating rate retail loans and loans to MSME to the RBI’s repo rate, with effect from October 1.
1) BOB
2) SBI
3) Union Bank of India
4) Dena Bank
5) IDBI


7. Pine Labs ,recently tied up with which of the following banks to offer debit card EMIs?
1) RBL Bank
2) Lakshmi Vilas Bank
3) Yes Bank
4) Federal Bank
5) Axis Bank


8. NRIs with Indian Passport can now apply for Aadhaar on arrival without ________-day waiting period.
1) 167
2) 175
3) 182
4) 199
5) 220


9. ___________ & Bharti AXA Life , recently tied up to offer pre-paid plan with term cover to its customers.
1) Vodafone
2) Reliance Jio
3) Airtel
4) BSNL
5) None of these


10. More than 10 banks from different countries have formed a group to fund for a risky Power plant development project. This type of banking is called as?
1) Credit Syndication
2) Credit Monitoring Arrangement
3) Consortium finance
4) Group cash delivery
5) Group financing

Banking Awareness MCQs Part 32

1. _______ is a monetary policy intervention by the RBI to withdraw excess liquidity by selling government securities in the economy.
1) Market Development Assistance Scheme
2) Market Intervention Scheme
3) Market Segmentation Scheme
4) Market Stabilisation Scheme
5) Market capitalisation Scheme


2. The Central and the State Governments should maintain a minimum balance of _______ crore as on daily with RBI.
1) 100 Crore
2) 5 Crore
3) 25 Crore
4) 10 Crore
5) 50 Crore


3. Which among the following services cannot be provided through Micro ATMs?
1) Balance Enquiry
2) Funds Transfer
3) Cash Withdrawal
4) Lending Loans
5) Cash Deposit

4. ______ accounts are held by a third-party bank, other than both banks who are doing the transactions.
1) Loro Account
2) VOSTRO Account
3) NOSTRO Account
4) NRI Account
5) NRE Account


5. RuPay is India’s indigenous card scheme created by Which of the following organizations?
1) NACH
2) NHB
3) NPCI
4) RBI
5) GOI


6. Which among the following is the tagline of Syndicate Bank?
1) India’s International Bank
2) Prosperity for all
3) Together We can
4) Faithful and Friendly
5) Relationship Beyond Banking
correct option : 4

7. NABARD was established based on the recommendations of which of the following committee?
1) Sreedharan Committee
2) Vohra Committee
3) P K Sinha Committee
4) B Sivaraman Committee
5) Narasimhan Committee


8. Which among the following has launched 'Bharosa' savings account services recently?
1) Paytm Payments Bank
2) ESAF Small Finance Bank
3) Airtel Payments Bank
4) Jio Payments Bank
5) Jana Small Finance Bank


9. The Bankruptcy Code (Amendment) Bill, 2019 has set ________ day deadline for rescuing companies in distress to fast track cleaning up of bad assets.
1) 330
2) 270
3) 364
4) 180
5) 129


10. UPR is the total annual premium less than the amount earned. What is the full form of UPR?
1) Uniform Premium Research
2) Uninsured Premium Reserve
3) Unearned Premium Reserve
4) Unearned Premium Requirement
5) Uninsured Premium Requirement

 Banking Awareness MCQs Part 31

1. In context of BASEL III Accords, what does LCR stands for______.

1) Liberalized capital rate

2) Liberalized Currency ratio

3) Leveled Credit rate

4) Low Capital Region

5) Liquidity Coverage ratio

2. ______ , recently got Scheduled Bank status.

1) Equitas Small Finance Bank

2) A U Small Finance Bank

3) Jana Small Finance Bank

4) Capital Small Finance Bank

5) ESAF Small Finance Bank

3. MICR is a nine-digit number printed on banking instruments such as a cheque or a demand draft, its first three digits denotes_________.

1) City

2) CVV

3) Bank code

4) Country Code

5) Branch code

4. National Small Saving is part of _______.

1) Consolidated Fund of India

2) Contingency Fund of India

3) Public Account of India

4) Both (1) & (3)

5) All (1), (2) & (3)

5.Which of the following banks has a tagline ‘Let’s make money simple’?

1) Bank of India

2) Central Bank of India

3) IDBI

4) Kotak Mahindra Bank

5) Dena Bank

6.Which of the following committee recommended the formation of ‘Payments Bank’ in India?

1) Nalin Mehta

2) B Sivaraman

3) Urjit Patel

4) Nachiket Mor

5) Aviral Acharya

7. Support extended to limit production comes under which category of WTO?

1) Amber box

2) Green box

3) Development Box

4) Blue box

5) Special and Differential treatment Box

8. ______measures the amount of money flowing from one country to other countries over one monetary year.

1) Foreign institutional Investment

2) Balance of Payments

3) Foreign portfolio investment

4) Foreign Direct Investment

5) None of the above

9. Which of the following is a component for calculating index ratio in the Inflation-indexed bonds?

1) WPI on Settlement date

2) CPI on Settlement date

3) WPI on Issue Date

4) Both 1 & 3

5) Both 1 & 2

10. The Reserve Bank of India has sold its entire stake in NABARD and NHB to the government based on the recommendation of _____.

1) Narasimham Committee

2) Raghuram Rajan Committee

3) Urjit Patel Committee

4) YV Reddy Committee

5) HR Khan Committee

Banking Awareness MCQs Part 28 

1. In a/an _______ market, the seller sells his goods to the highest bidder.
1) Black Market
2) Knowledge Market
3) Financial Market
4) Auction Market
5) Physical Market
correct option : 4

2. Which among the following would help Cooperative banks to get Core Banking Access?
1) RBI
2) NABARD
3) SEBI
4) SIDBI
5) NHB
correct option : 2

3. What is the maximum limit of Foreign Direct Investment in White Label ATMs?
1) 49%
2) 86%
3) 100%
4) 70%
5) 26%
correct option : 3

4. Commercial Paper can be issued in the minimum denominations of _______ rupees.
1) 1 Lakh
2) 2 Lakh
3) 3 Lakh
4) 4 Lakh
5) 5 Lakh
correct option : 5

5. RBI has proposed Rs _________ crore minimum capital for small banks under 'on tap' licence regime.
1) 100
2) 200
3) 300
4) 400
5) 500
correct option : 2

6. Reserve Bank of India (RBI),recently reduced the risk weight requirement for consumer loans to _________ percent, from previous 125 percent.
1) 75
2) 90
3) 100
4) 110
5) None of these
correct option : 3

7. The type of fund that invest exclusively in government securities is known as _______.
1) Index Fund
2) Gilt Fund
3) Specific Fund
4) Liquid Fund
5) None of the above
correct option : 2

8.We can transfer funds using your BHIM SBI Pay app to your friend/relative by knowing only their ___________.
1) Virtual Payment Application
2) Versatile Payment Address
3) Virtual Payback Address
4) Virtual Payment Address
5) Visual Pay Address
correct option : 4

9. What is the maximum amount of loan to be given in Kishore Category of MUDRA Bank?
1) 50000
2) 10 Lakh
3) 5 Lakh
4) 15 Lakh
5) 1 Lakh
correct option : 3

10. ___________ has introduced to regulate the financial sectors for ensuring better efficiency as well as for avoiding conflicts due to overlapping of functions.
1) RBI
2) FRDI
3) FSDC
4) FIEO
5) IRMA
correct option : 3

1. What is the lock-in period of funds involved in Equity-linked Savings Scheme?
1) No Lock-in Period
2) 2 Years
3) 6 Months
4) 12 Months
5) 3 Years


2. _________by IDBI Bank is a first of its kind Mobile Money payment solution.
1) PayBid
2) PayId
3) Bipay
4) IDBIMob
5) PayApt


3. Who appoints the Chairman of Finance Commission?
1) Prime Minister
2) Union Finance Minister
3) Governor, RBI
4) President of India
5) Chairman, NITI Aayog


4. RBI has increased the bank credit to NBFCs for on-lending to MSEs under Priority Sector Lending up to a limit of______ percentage of bank’s total PSL.
1) 4%
2) 4.5%
3) 5%
4) 5.5%
5) 6%


5. The headquarters of National Payments Corporation of India (NPCI) is situated in _________.
1) New Delhi
2) Kolkata
3) Lucknow
4) Mumbai
5) None of the above


6. SARFAESI Act was enacted to identify and rectify the problem of NPAs. ‘R’ in SARFAESI stands for________.
1) Returns
2) Recovery
3) Reconstruction
4) Reduced
5) Repaying


7. While exchanging the soiled notes, a person can be presented the maximum of ____ pieces with a maximum value of _____ per day respectively.
1) 10,  1000
2) 20, 2500
3) 20, 5000
4) 25, 2500
5) 25, 5000


8. The fund that can be invested exclusively in government securities is known as _______.
1) Index Fund
2) Gilt Fund
3) Specific Fund
4) Liquid Fund
5) None of the above


9. Aditya Birla Health Insurance has entered into a bancassurance partnership with which among the following banks?
1) Andhra Bank
2) ICICI Bank
3) HDFC Bank
4) Axis Bank
5) Bandhan Bank


10. Recently, the Confederation of Indian Industry unveiled FPI to assess the quality of Budgets. In FPI, ‘P’ denotes ______.
1) Pricing
2) Performance
3) Product
4) Producing
5) Planning

Banking Awareness MCQs Part 30

1. As per the RBI's notification, the bank should have to reverse failed transactions within a maximum of ________ days of failed transactions.
1) T + 3
2) T + 4
3) T + 2
4) T + 7
5) T + 5
correct option : 5

2. Recently, Bank of Baroda launched Centralised Processing hubs at ________ for farmers.
1) Bengaluru
2) Chennai
3) Hyderabad
4) Mumbai
5) Vadodara
correct option : 3

3. _______ is a negotiable financial instrument issued by a bank to represent a foreign company’s publicly traded securities.
1) Promissory notes
2) Depositary Receipt
3) Bills of Exchange
4) Participatory Notes
5) Certificates of Deposit
correct option : 2

4. Mumbai is the Headquarters of which of the following Banks?
1) Federal Bank
2) Syndicate Bank
3) RBL Bank
4) Punjab National Bank
5) Oriental Bank of Commerce
correct option : 3

5. The applications of SFB were analyzed and evaluated by an External Advisory Committee. The EAC for Small Finance Banks was chaired by ____________
1) Nachiket Mor
2) Usha Thorat
3) Balachandran
4) Deepak Pathak
5) Sriram
correct option : 2

6. A SWIFT code is an international bank code that identifies particular banks worldwide. In Swift Code, 5 th & 6 th digits denote-
1) Country Code
2) Bank Code
3) Location Code
4) Branch Code
5) City code
correct option : 1

7. The Insurance Ombudsman shall pass an award within a period of _____ months from the receipt of the complaint.
1) 12
2) 3
3) 2
4) 9
5) 6
correct option : 2

8. RBI ,recently approved reappointment of Shyam Srinivasan as CEO of_________.
1) Lakshmi Vilas Bank
2) RBL Bank
3) Yes Bank
4) Federal Bank
5) ICICI Bank
correct option : 4

9. _________ is set to invest in 6 projects with 1.09 billion U.S.D in countries of the Association of Southeast Asian Nations (ASEAN).
1) ADB
2) NDB
3) IMF
4) AIIB
5) None of these
correct option : 4

10. Which of the following committees recommended to allowing private sector companies to promote insurance in the country?
1) Raghavan Committee
2) R N Malhotra Committee
3) P R Khanna Committee
4) D R Mehta Committee
5) J Reddy Committee
correct option : 2

Banking Awareness MCQs Part 25 

1. The Nainital bank is a subsidiary of ____________.
1) Bank of Baroda
2) Axis Bank
3) Punjab National Bank
4) Bandhan Bank
5) Canara Bank
correct option : 1

2. Which of the following term is used to define a period of time when someone goes without insurance coverage?
1) Endorsement
2) Lapse
3) Condominium
4) Arson
5) Exclusion
correct option : 2

3. What is the function of Authorised Money Changers?
1) Deal in foreign exchange facilities
2) Distribution of new notes for soiled notes
3) Converting physical money into digital currency
4) Facilitating online transactions within and outside country
5) Money transfer for securities sold in market
correct option : 1

4. What was the initial corpus with which Rural Infrastructure Development Fund was set up?
1) Rs 1000 Crore
2) Rs 750 Crore
3) Rs 1250 Crore
4) Rs 2000 Crore
5) Rs 1750 Crore
correct option : 4

5. What is the Capital to Risk- weighted Assets Ratio (CRAR) to be maintained by Indian Banks under Basel III norms?
1) 8%
2) 6%
3) 9%
4) 7%
5) 10%
correct option : 3

6. Which of the following is a competitive market situation where there are many sellers, but they are selling heterogeneous (dissimilar) goods?
1) Absolute Competition
2) Imperfect Competition
3) Perfect Competition
4) Oligopolistic Competition
5) None of the above
correct option : 2

7. Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called _____________ ATMs.
1) Brown-label
2) Blue-label
3) White-label
4) Grey-label
5) None of those given as options
correct option : 3

8. Insurance premiums cannot be paid by ________
1) Promissory Note
2) UPI
3) RuPay Card
4) Both A & B
5) All A, B & C
correct option : 1

9. Reserve Bank has identified four broad areas for targeted policy intervention to improve the existing payments system. Which of the following is not among them?
1) Competition
2) Cost
3) Coverage
4) Convenience
5) Confidence
correct option : 3
 

10. Which among the following is true about ‘Perpetual Bond’?
1) A bond with tax-free interest
2) A bond with high yields
3) A bond with a redeemable option
4) A bond with fixed income
5) None of the above
correct option : 4

Banking Awareness MCQs Part 26  

1. SBI recently offered MUDRA loans to Kerala broiler farmers. What is the maximum Loan limit under MUDRA?
1) Rs 4 Lakh
2) Rs 10 Lakh
3) Rs 12 Lakh
4) Rs 5 Lakh
5) Rs 7 Lakh


2. There are basically _____ principles that govern the insurance.
1) 10
2) 12
3) 7
4) 5
5) 3


3. “Sar utha ke jiyo” is a tagline of _______________.
1) SBI Life Insurance
2) Postal Life Insurance
3) HDFC Standard Life Insurance
4) Aviva Life Insurance
5) ICICI Prudential Life Insurance


4. In FY-20, NBFCs are expected to grow by __________, as per Ratings agency India Ratings.
1) 4-5%
2) 6-7%
3) 8-9%
4) 10-12%
5) 6-9%


5. Insurance regulator IRDAI formed a working group to revisit norms on trade credit insurance. Where is the headquarters of IRDAI situated?
1) Pune
2) Mumbai
3) Chennai
4) Hyderabad
5) New Delhi


6. State Bank of India has planned to sell ______ percent stake in SBI Life Insurance for ? 3465 Crore.
1) 4.5%
2) 6.5%
3) 3.5%
4) 5.0%
5) 2.5%

7. __________, recently came out with new ATM withdrawal charges, to be revised from October 1.
1) BOB
2) Union Bank of India
3) SBI
4) IDBI
5) None of these


8. IDBI Bank announced its decision to launch co-branded credit card with which of the following organisation?
1) EPFO
2) NHB
3) RBI
4) LIC
5) NABARD


9. Recently, RBI Panel under the chairmanship of _______ has recommended that an intermediary be set up under the National Housing Bank (NHB).
1) Bimal Jalan
2) Pami Dua
3) VK Johri
4) Usha Thorat
5) Harsh Vardhan


10. ______ ,recently rationalised MDR for RuPay debit card deals.
1) None of these
2) NPCI
3) RBI
4) IBDRT
5) ReBIT

Banking Awareness MCQs Part 27 

1. Certificate of Deposit (CD) is issued by_____________.
1) Reserve Bank of India
2) NABARD
3) Scheduled commercial banks
4) Private organizations
5) All of the above


2.What is the maximum FDI limit in the Small finance Banks?
1) 35%
2) 51%
3) 100%
4) 74%
5) 49%


3. APA gives certainty to taxpayers, reduce disputes and enhances tax revenues. What does ‘P’ denote in ‘APA’?
1) Personal
2) Pricing
3) Payment
4) Public
5) Preference


4. As per the RBI guidelines, which among the following categories of loans could NOT be priced without reference to Base Rate?
1) DRI advances
2) Loans to retired bank employees
3) Education Loan
4) Loans to banks’ depositors against the collateral property
5) Both (a) and (d)


5. Reserve Bank of India (RBI) extended timings for customer transactions in the Real Time Gross Settlement (RTGS). In India RTGS was started in__________.
1) May 2005
2) March 2004
3) June 2006
4) August 2005
5) None of the above


6. The Reserve Bank of India has advised SCBs to appoint Internal Ombudsman under the section 35A of ________.
1) Banking Companies Act 1970
2) Banking Ombudsman Act 2006
3) Reserve Bank of India Act 1934
4) Banking Regulation Act 1949
5) None of the above


7. Which among the following account type has the maximum interest rate compared to others?
1) Savings Bank Account
2) Current Deposit Account
3) Recurring Deposit Account
4) Fixed Deposit Account
5) None of the above


8. As per the guidelines of RBI, Regional Rural Banks have a target of _____ percentage of their outstanding advances for priority sector lending.
1) 75%
2) 40%
3) 60%
4) 80%
5) 45%


9. Which among the following deposits allows the depositor to withdraw funds from the account without notice?
1) Time deposit
2) Term deposit
3) Fixed deposit
4) Demand deposit
5) Variable deposit


10. Where are the headquarters of WTO located?
1) Switzerland
2) France
3) Denmark
4) Estonia
5) Belgium

 Banking Awareness MCQs Part 24 

1. Who presented the first Union budget of independent India?
1) Jawaharlal Nehru
2) Vallabhai Patel
3) Bhimrao Ambedkar
4) RK Sanmukham Chetty
5) John Mathai


2. What is the minimum Capital Adequacy ratio to be maintained by payment banks in India?
1) 11%
2) 12%
3) 11.5%
4) 15%
5) 14%


3. ______ is a fixed amount that is received or paid at regular intervals for a specified period.
1) Perpetuity
2) Annuity
3) Premium
4) Dividend
5) Bonus


4. As per RBI mandate, banks may choose any benchmark market interest rate published by FBIL for linking of their loan products. What is 'I' in FBIL?
1) Integrated
2) Industrial
3) Interest
4) India
5) Insolvency

5. Government has decided to infuse Rs __________ crore in IDBI Bank to work out as bailout money for the bank
1) 8000
2) 14000
3) 11000
4) 9000
5) 12000


6. _______ is a product for which demand increases as the price increases and falls when the price decreases.
1) Complementary Goods
2) Novice Goods
3) Giffen Goods
4) Auxiliary Goods
5) Gilt Goods


7. Which of the following small finance bank of India recently proposed issuing shares of the bank to its shareholders without cash consideration?
1) Ujjivan SFB
2) Equitas SFB
3) Utkarsh SFB
4) Fincare SFB
5) ESAF SFB


8. Bank of Baroda has planned to raise capital up to Rs ___________ crore through tier-II bonds for meeting capital adequacy norms for the newly merged entity.
1) 5000
2) 1500
3) 2400
4) 2000
5) 3000


9. The maximum incentive that could be received as a Merchant on BHIM Aadhar Pay App is _________.
1) 3000
2) 50
3) 2000
4) 5000
5) There is no such incentive


10. RBI, recently declined ________ request to extend listing deadline for small finance bank.
1) Ujjivan
2) Jana
3) Equitas
4) AU
5) Fincare

Banking Awareness MCQs Part 21 

1. Which of the following is not one of the quantitative measures of credit control used by Reserve Bank of India?
1) SLR
2) CRR
3) Bank rate Policy
4) Moral Suasion
5) All are true


2. Which of the following ratio shows the amount of currency that people hold as a proportion of aggregate deposits?
1) Debit Deposit Ratio
2) CASA Ratio
3) Currency Deposit Ratio
4) Credit Deposit Ratio
5) Loan to Deposit Ratio


3. Which of the following authorities appoint Banking Ombudsman?
1) Ministry of Finance, Government of India
2) Individual Commercial Banks
3) Reserve Bank of India
4) Indian Banks' Association
5) Banking Codes and Standards Board of India


4. The Bank of Rajasthan was merged with which of the following banks?
1) ICICI Bank
2) HDFC Bank
3) ING Vysya
4) Kotak Mahindra Bank
5) Axis Bank


5. Addition of Product taxes and deduction of product subsidies from GVA basic prices will provide
1) GVA factor cost
2) GVA market price
3) GDP factor cost
4) GDP market price
5) GDP basic price


6. ____________panel of the RBI has recommended that the revised economic capital framework will be reviewed every five years.
1) Usha Thorat
2) Bimal Jalan
3) Nachiket Mor
4) Y V Reddy
5) None of these


7. Government, along with three other mergers has decided to merge Canara Bank and Syndicate Bank making it _________ largest bank entity.
1) 2nd
2) 3rd
3) 4th
4) 5th
5) 7th


8.Which of the following is/are TRUE regarding Shares in capital market?
1) Risk factor is high in shares than in debt instruments
2) It is a unit of ownership
3) Equity Shares have claim over capital, profit and loss
4) Both A & B Only
5) All A, B & C


9.Which of the following term denotes a currency which is hyper-sensitive and fluctuates frequently often with political & economic situations?
1) Hard Currency
2) Hot Currency
3) Soft Currency
4) Easy Currency
5) None of the above


10. Acc. to Finance Ministry, GST collection up ______ % in August at ?98,202 crore.
1) 3.57
2) 4.51
3) 6.51
4) 2.67
5) None of these

Banking Awareness MCQs Part 22

1. As per recent notification by NPCI ,MDR has been revised to 0.30% with a maximum cap of ?100 per transaction. 'D' in MDR stands for__________.
1) Digital
2) Discount
3) Discreet
4) Developed
5) Department
correct option : 2

2. RBI has extended deadline for PPIs to become full KYC complaint, from ________months to________ months.
1) 12, 16
2) 9, 12
3) 18, 24
4) 24,30
5) 36, 48
correct option : 3

3.Which bank recently tied up with TATA AIG insurance for diverse range of general insurance policies benefiting the bank’s customers?
1) South Indian Bank
2) Federal Bank
3) Corporation Bank
4) Indian Bank
5) Indian Overseas Bank
correct option : 4

4. Samsung India tied up with Mastercard and which other bank in India for mobile payments?
1) Bank of India
2) ICICI Bank
3) RBL Bank
4) Bank of Baroda
5) Allahabad Bank
correct option : 3

5. Which of the following bank says to you, “Apno ka Bank”?
1) Federal Bank
2) Allahabad Bank
3) Punjab National Bank
4) IDFC Capital First
5) RBL Bank
correct option : 5

6. In which of the following payment system(s) is the user required to provide Indian Financial System Code (IFSC) during transactions?
1) Real Time Gross Settlement
2) National Electronic Funds Transfer
3) Credit card and Debit card transactions
4) Both A & B
5) All of the above
correct option : 4

7. ___________ is long-term unemployment caused by the decline of certain industries and changes in the production process.
1) Frictional unemployment
2) Cyclical unemployment
3) Structural unemployment
4) Seasonal unemployment
5) Disguised unemployment
correct option : 3

8. Which of the following can act as Issuing and Paying Agent for the issuance of Commercial Paper?
1) Corporates
2) Foreign Institutions
3) Scheduled Bank
4) Non-Scheduled Bank
5) All the above
correct option : 3

9.Which of the following entities recently announced the establishment of the first global green bond fund?
1) IMF, Deutsche Asset Management
2) ADB, BNP Paribas Investment Partners
3) None of these
4) NDB, New York Life Investment Management
5) IFC & HSBC Global Asset Management
correct option : 5

10. CMO is a generic term for a security backed by real estate mortgages. ‘O’ in CMO stands for____________.
1) Offerings
2) Obligation
3) Overseas
4) Ombudsman
5) Ownership
correct option : 2

Banking Awareness MCQs Part 23 

1. ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature. ‘C’ in ECS stands for?
1) Corporate
2) Company
3) Cash
4) Customer
5) Clearing

2.Which of he following facility/service is NOT available in a White Label ATM?
1) Regular Bills Payment
2) Cash Deposit
3) PIN change
4) Request for Cheque Book
5) All the above ARE available

3. As per the RBI annual report, Banking fraud cases have witnessed a rise by over how much percentage (approx.) in FY-19 over FY-18?
1) 70%
2) 78%
3) 80%
4) 85%
5) None of those given as options

4. Which organisation recently underwent an agreement with Steel Users Federation of India for launch of steel futures?
1) National Stock Exchange
2) Multi-commodity Exchange
3) Ahmedabad stock exchange
4) India-International Exchange
5) Bombay Stock Exchange

5. SBI ,recently raised up to Rs _____ Crore By Issuing Basel-III-Compliant Bonds.
1) 2134
2) 3105
3) 4567
4) 5798
5) 8653

6. ICAAP is a process which helps banks in India to assess the capital requirement under BASEL norms. What is ‘I’ in ICAAP?
1) Internal
2) Investment
3) Industry
4) Integrated
5) Initial

7. The “India Microfinance Equity Fund” is operated through ___________.
1) MUDRA Bank
2) SIDBI
3) RBI
4) Scheduled banks
5) Industrial Finance Corporation of India

8.Who among the following is/are eligible for opening a Fixed Deposit in a bank?
1) Hindu Undivided Family
2) Limited Companies
3) Clubs and Societies
4) A & B Only
5) All A, B & C

9. Among the following which are the Indian credit bureaus?
1) CIBIL TransUnion
2) Experian
3) Equifax
4) CRIF High Mark
5) All of the above

10. Which of the following option is INCORRECT regarding Treasury Bills?
1) They have a maximum maturity period of 192 days
2) They pay maximum interest among other instruments
3) They are issued by Finance Ministry
4) Both A & C only
5) All A, B & C

 Banking Awareness MCQs Part 18 

1. The fintech NBFCs should have less than ______ percentage of non-performing assets to be eligible for funding assistance.
1) 15%
2) 9%
3) 4%
4) 8%
5) 11%


2. The Reserve Bank of India has introduced the changes in the Credit Authorisation Scheme of Credit based on the recommendation of _______.
1) Sivaraman Committee
2) Siddiqui Committee
3) Narasimham Committee
4) Chakravarty Committee
5) Vaghul Committee


3.What is the maximum FDI limit in the Small Finance Banks?
1) 35%
2) 51%
3) 100%
4) 74%
5) 49%


4. Interest Rates are the rates that banks offer to their depositors. Which among the following is NOT a factor for determining the interest rates?
1) Government borrowings
2) Supply of Money
3) Current Account Deficit
4) Demand for Money
5) Inflation Rate


5. Index of Eight Core Industries doesn’t measure the performance of _______.
1) Coal
2) Iron
3) Cement
4) Fertilizer
5) Electricity

6. EPFO is likely to appoint ______ as fund managers.
1) SBI MF
2) HSBC AMC
3) UTI AMC
4) Only B&C
5) All of the above


7. Cash Reserve Ratio is maintained as a percentage of which of the following measures?
1) Adjusted Net Bank Credit
2) Off-Balance Sheet Exposure
3) Net Capital Reserve
4) Net Demand and Time Liability
5) Depository Liquidity Proportion


8. Which of the following statements in context of Treasury Bills is not correct?
1) They are issued by RBI
2) They have a maximum maturity of a 365 days
3) They are issued when the government need money for a shorter period
4) They are zero coupon securities and pay no interest
5) None of the above


9. As per the RBI guidelines, which among the following categories of loans could NOT be priced without reference to Base Rate?
1) DRI advances
2) Loans to retired bank employees
3) Education Loan
4) Loans to banks’ depositors against the collateral property
5) Both (a) and (d)
correct option : 3

10. National Securities Depository Limited was established in which year?
1) 1990
2) 1994
3) 1992
4) 1996
5) 1998