Test: Principles and Practices of Banking - 5 - Bank Exams MCQ

Who is eligible for coverage under PMFBY?

What is a custodian bank?

What are some security tips to avoid phishing, vishing, and smishing attacks?

What is the maximum amount that can be repatriated abroad from a resident account held by a foreign national leaving India?

Why is ethical conduct important in information security?

Direction: Bank computerization during the initial stages involved the transition of traditional manual banking processes to computer-based systems. This transition aimed to improve the efficiency and accuracy of banking operations and to provide better customer service. During the initial stages of bank computerization, banks typically adopted standalone computer systems that were not connected to any network. One of the key challenges during the initial stages of bank computerization was the lack of standardization and interoperability between different systems. Overall, the initial stages of bank computerization laid the foundation for the modern digital banking systems that we have today. The use of technology has transformed banking operations and has made it possible to offer a wide range of services to customers through online and mobile platforms.

Q. What advantage(s) do/does Centralized data processing give to the banks?
(i) Each branch shares the same set of software, hardware, and other infrastructure.
(ii) The corporate-level information is made available to all the branches.
(iii) If the central server goes down, it will not affect the productivity of the systems connected.

Direction: Bank computerization during the initial stages involved the transition of traditional manual banking processes to computer-based systems. This transition aimed to improve the efficiency and accuracy of banking operations and to provide better customer service. During the initial stages of bank computerization, banks typically adopted standalone computer systems that were not connected to any network. One of the key challenges during the initial stages of bank computerization was the lack of standardization and interoperability between different systems. Overall, the initial stages of bank computerization laid the foundation for the modern digital banking systems that we have today. The use of technology has transformed banking operations and has made it possible to offer a wide range of services to customers through online and mobile platforms.

Q. When did the concept of Bank Computerization practically start?

Which philosophy of ethics is described by the following statement:
Each of us with a wealth surplus to his or her essential needs should be giving most of it to the people suffering from poverty so dire as to be life-threatening

Which ethical code of conduct says that the banks must offer suitable products or services to customers as per their requirements and profile?

What is the holistic approach to ethical production?

Read the following statements about Values at the workplace.
(i) The extent to which personal values match with the values in an organization is considered an indicator of the "fit" between the organization and the individual.
(ii) Improving corporate performance on a single value does not affect the way a company functions.

What is the main purpose of NICNET?

Which of the following machines helps to withdraw cash?
(i) Cash Recycler Machine
(ii) Cash Dispenser Machine
(iii) Automated teller Machine

What is/are the requirement for due diligence in the case of opening a Savings account for a Self-Help Group?

Can a Regulated Entity appeal against an Award issued for the non-furnishing of documents/ information by it?

What is the purpose of the loan provided by MUDRA?

Which of the following statements is correct about Non-Resident (External) Rupee Account Scheme - NRE Account?

Direction: Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services without holding a banking license. They operate in various segments such as consumer finance, vehicle finance, housing finance, and microfinance, among others. Banks provide finance to NBFCs in the form of term loans, working capital loans, and credit lines. The finance is typically used by NBFCs to fund their lending activities, purchase assets, and other operational expenses. Banks also provide credit enhancement facilities such as guarantees and letters of credit to support NBFCs in raising funds from the market. The Reserve Bank of India (RBI) regulates the lending activities of banks to NBFCs. The RBI has mandated that banks should classify their lending to NBFCs as per their risk assessment and ensure that the exposure to individual NBFCs does not exceed the prescribed limits.

Q. Which of the following institutions is not included in the definition of NBFC?

Direction: Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services without holding a banking license. They operate in various segments such as consumer finance, vehicle finance, housing finance, and microfinance, among others. Banks provide finance to NBFCs in the form of term loans, working capital loans, and credit lines. The finance is typically used by NBFCs to fund their lending activities, purchase assets, and other operational expenses. Banks also provide credit enhancement facilities such as guarantees and letters of credit to support NBFCs in raising funds from the market. The Reserve Bank of India (RBI) regulates the lending activities of banks to NBFCs. The RBI has mandated that banks should classify their lending to NBFCs as per their risk assessment and ensure that the exposure to individual NBFCs does not exceed the prescribed limits.

Q. Which of the following activities are NBFCs engaged in, that banks may extend working capital and term loans to?

Direction: Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services without holding a banking license. They operate in various segments such as consumer finance, vehicle finance, housing finance, and microfinance, among others. Banks provide finance to NBFCs in the form of term loans, working capital loans, and credit lines. The finance is typically used by NBFCs to fund their lending activities, purchase assets, and other operational expenses. Banks also provide credit enhancement facilities such as guarantees and letters of credit to support NBFCs in raising funds from the market. The Reserve Bank of India (RBI) regulates the lending activities of banks to NBFCs. The RBI has mandated that banks should classify their lending to NBFCs as per their risk assessment and ensure that the exposure to individual NBFCs does not exceed the prescribed limits.

Q. Under what conditions can banks rediscount bills discounted by NBFCs arising from the sale of commercial vehicles?

How are retail loans mainly processed and monitored?

What is the Credit Information Companies (Regulation) Act, of 2005?

What are the two fundamental criteria that determine the liability of a bank under a guarantee?

Direction: A bank has a large number of customers who are not individuals but are entities like partnerships, companies, trusts, and associations. These entities hold different types of accounts with the bank, such as current accounts, savings accounts, term deposits, and foreign currency accounts. The bank has to ensure that the accounts of these entities comply with the relevant laws and regulations and that the transactions are consistent with the purpose of the account. The bank has a dedicated team of professionals who handle these accounts and ensure that they comply with the law. Banks should also inform the authorized signatories of any issues with the account and advise them to take appropriate measures to safeguard the funds.

Q. Which of the following rules is incorrect regarding the obtaining of Photographs of account holders?

Direction: A bank has a large number of customers who are not individuals but are entities like partnerships, companies, trusts, and associations. These entities hold different types of accounts with the bank, such as current accounts, savings accounts, term deposits, and foreign currency accounts. The bank has to ensure that the accounts of these entities comply with the relevant laws and regulations and that the transactions are consistent with the purpose of the account. The bank has a dedicated team of professionals who handle these accounts and ensure that they comply with the law. Banks should also inform the authorized signatories of any issues with the account and advise them to take appropriate measures to safeguard the funds.

Q. According to the rules for opening and operations of a partnership firm's account, when should the operations in the account be stopped if a partner gives notice of stoppage of operation?

What is smishing?

What is the maximum number of State Information Commissioners that can be appointed?