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TTHHEE WWIINNGGSS--22001144 (STUDY MATERIAL FOR PROMOTION EXAMINATIONS)

PREPARED BY TEAM SBLC, MASULIPATNAM

STATE BANK LEARNING CENTRE MASULIPATNAM-521002

ANDHRA PRADESH

,

STATE BANK LEARNING CENTRE MASULIPATNAM 521 002 KRISHNA DIST. ANDHRA PRADESH

Phone: 08672-250078 (AGM) 08672- 251548 (Office) ( FAX: 08672-251546 IP: 903191 Emai: [email protected]

Date : 21st April, 2014

Dear colleagues,

THE WINGS-2014

A STUDY MATERIAL FOR ALL PROMOTION EXAMINATIONS We are very happy to bring forth THE WINGS-2014, a compilation of study material which could be of use for promotion examinations in the coming months. 2. Over the last couple of years, THE WINGS & SADHANA SERIES have become very popular among all the career oriented employees/officials of our Bank. The Wings-2013 & Sadhana Series -2013 evoked tremendous response from the various users. The happiest and relishing thing is that the appreciations have poured in not only from various parts of the country but also from some of the colleagues working abroad. With lots and lots of new users being added, there is a great demand for the release of THE WINGS-2014. 3. A word of caution to the users of the book. While we have taken every care and precaution in compiling the material error-free, a few mistakes might have crept in inadvertently. Neither the Bank nor the SBLC owns up any responsibility for controversies, if any, arising out of this compilation. 4. All the faculty members presently working at the SBLC have contributed to this effort. The Team SBLC, Masulipatnam wishes all the users the best of luck in their endeavours to gain more knowledge and elevation in service. Asst General Manager

STATE BANK LEARNING CENTRE MASULIPATNAM - 521002

KRISHNA DISTRICT - ANDHRA RPADESH

TEAM SBLC MASULIPATNAM

S.NO. NAME CELL NO. EMAIL ID @sbi.co.in

1. Shri. D. Syam Prasad Assistant General Manager

9866502240 ds.prasad

2. Shri. M. Sai Chakradhar Chief Manager (Trg.)

9989211097 ms.chakradhar

3. Smt. B. Savithri Manager (Trg.)

9959111096 savithri.ausekar

4. Shri. S. Sivajee Manager (Trg.)

9666665946 sivajee.s

5. Shri. P. Padma Babu Goud Manager (Trg.)

9989389685 pallem.goud

6. Shri. R. Prabhakara Rao Manager (Trg.)

8008801272 reka.rao

7. Shri. B. Chakrapani Manager (Trg.)

9000169123 bc.pani

8. Shri. K. Bala Subramanyam Administrative Officer

9704944424 k.balasubramanyam

9. MS Maria Begum Assistant

8142717999 maria.begum

10. Shri K.Rajesh Kumar Assistant

9966550016 karri.kumar

Office Phone Nos.

AGM : 08672-250078 Office : 08672-251548 Fax : 08672-251564 IP : 903191 EMAIL : [email protected]

THE WINGS 2014 SBLC, MASULIPATNAM

Page 1 of 141

COMMERCIAL & INSTITUTIONAL FINANCE (C&I)

Compiled by Shri M Sai Chakradhar, Chief Manager (Training)

1 1. What are two types of Ratings we have in New CRA? a) Regular & Simplified Ratings b) Borrower & Facility Ratings c) WC & TL Ratings d) None of these

2 CRA 2007 is applicable for all advance accounts with aggregate exposure(Fund based+Non fund based) of _______ a) Rs 5 lacs and above b) Rs 1 crore and above c) Rs 25 lacs and above d) Rs 5 crores and above

3 How many risk rating grades are there in CRA-2007? a) 16 b) 10 c) 8 d) 15

4 CRA 2007 is applicable for all advance accounts with aggregate exposure(Fund based+Non fund based) of _______ a) Rs.5 lacs and above b) Rs 25 lacs and above c) Rs 1 crore and above d) Rs 5 crores and above

5 What is the hurdle rate under New CRA-2007? a) SB- 5 b) SB- 4 c) SB- 8 d) SB- 10

6 Opinion reports on Borrowers / Guarantors are to be updated at --- a) Quarterly intervals b) Half yearly intervals c) at yearly intervals irrespective of

review / renewal d) at the time of renewal /

enhancement of of limits 7 Financial Follow up Reports (FFRs) to be submitted by borrowal accounts with

FBWC limits of a) Rs 5 Crore and above b) Rs 2 Crores and above c) Rs 1 Crore and above d) Rs 3 Crores and above

8 FFR I should be submitted at a) Quarterly intervals within 6 weeks

from the completion of the quarter b) Quarterly intervals within 6 weeks

from the completion of the quarter c) Half yearly intervals within 6

weeks from the completion of the Half year

d) Half yearly intervals within 8 weeks from the completion of the Half year

9 What do you mean by specified securities? a) stocks, funds and securities

(other than immovable property) in which a trustee may invest trust money under any law for the time being in force in India;

b) receipts, certificates or any other form of instrument issued by the State Bank in evidence of or representing amounts deposited with it

c) any other security that may be specified by the Central Board

d) All of the above 10 FFR II should be submitted at

a) Quarterly intervals within 6 weeks from the completion of the quarter

b) Half yearly intervals within 8 weeks from the completion of the Half year

c) Quarterly intervals within 6 weeks from the completion of the quarter

d) Half yearly intervals within 6 weeks from the completion of the Half year


Page 2 of 141

11 Prudential exposure limits for single and group borrowers other than infrastructure projects is:- a) 15% of the capital (Tier I and Tier

II Capital) of the Bank for single and 40% for the group of borrowers

b) 25% for individual borrowers and 50% for group of borrowers

c) 20% of the capital of the Bank for individual and 50% for the group of borrowers

d) None of the above

12 What constitutes exposure? a) Includes both FB and NFB limits

sanctioned to the borrowers b) Loans and advances sanctioned to

the borrowers c) Includes FB and NFB facilities,

investments, underwriting and any other commitment

d) all of the above

13 What are the substantial exposure norms for single borrower specified by our Bank? a) 15% of the Tire I and Tire II

capital of the Bank b) 7.5% of the Tire I and Tire II capital

of the Bank. c) Rs. 20 crores d) None of the above.

14 What are the prudential exposure norms for non-corporate and non-individual borrowers? a) Rs.80 crores b) 100 crores c) Rs. 50 crores d) 25 crores

15 What is the loan policy guideline of the Bank in respect of maturity of loans (inclusive of gestation period)? a) 8 years b) 5 years c) 7 years d) 9 years

16 What is the indicative bench mark of the Bank in respect of Current Ratio for Manufacturing units? a) 1.25 b) 1.50 c) 1 d) 1.33

17 To assess the financial soundness of the unit, what is the reasonable TOL/TNW prescribed by the Bank for Trade and Service Units? a) 2:1 b) 5:1 c) 4:1 d) 3:1

18 What is the indicative Net Debt Service Coverage Ratio prescribed by the Bank? a) 3:1 b) 1.75:1 c) 2:1 d) 1.50:1

19 What is the indicative Gross Debt Service Coverage Ratio prescribed by the Bank? a) 3:1 b) 1.75:1 c) 2:1 d) 1.50:1

20 What is the indicative Debt Equity Gearing prescribed by the Bank for Trade & Service Units? a) 1.50 : 1 b) 2.25: 1 c) 1.75:1 d) 2: 1


Page 3 of 141

21 Selective Credit Control directives issued by RBI will not cover the following aspects of advances a) monetary ceiling per borrower b) Interest rate on advances c) overall ceiling for the Bank as a

whole in respect of a particular commodity

d) Margin on advances

22 What is the main objective of Selective Credit Control a) To control the loaning activities of

the Banks b) To regularize rate of interest on

particular types of commodities c) To control the level of advances

to a particular trade / industry d) To prevent speculative holding of

essential commodities with the help of Bank Credit

23 What is the validity period of administrative clearance (AC) accorded by the CCC/CCCC? a) 3 months b) 2 months c) 8 weeks d) 12months

24 What are the three major components of post-sanction credit process? a) Creation of security,

documentation and disbursement b) Inspection, follow-up and recovery

c) Follow-up, supervision and Control

d) None of the above 25 Follow-up function include one of these jobs

a) creation of security and documentation

b) Pre-sanction Inspection c) Sanction of the loan d) Application, appraisal and

recommendations 26 Supervision function include one of these jobs

a) Periodical classification of assets as per IRAC norms

b) Documentation and creation of charge

c) Obtention of Stock Statements d) Verification of books, registers and statements periodically

27 Cash Budget method used commonly for the following types of borrowers a) for SSI units of Rs.25 lacs and

above b) For C&I units of Rs.1 crore and

above c) for traders d) for seasonal industries like sugar,

tea and for construction activity 28 PBS method of assessment will be applicable to the following types of accounts

a) Borrowers engaged in manufacturing, services and trading and agricultural activities

b) Borrowers requiring FB Limits of Rs25 lacs and above

c) For borrowers with FB Limit requirement of above Rs.5 crores

d) none of the above

29 Turn Over method is applicable for the following credit limits a) For all units whose working

capital requirement is upto Rs.1 crore

b) For manufacturing units whose wc requirements is upto Rs.2 crores

c) For manufacturing, trade and services units whose working capital requirement is upto Rs. 5 crores



Page 4 of 141

30 What do you mean by ABF method? (Assessed Bank Finance) a) It is the amount of Limit

sanctioned to the unit b) It is one of the WC assessment

method c) it is a part and parcel of PBF

method of WC assessment d) none of the above

31 Demand Bills purchased and received at the realization branch are called:- a) Demand Bills Received for

Realization b) Local Short Credits

c) Bank Bills Receivable d) none the above 32 What do you mean by Documentary Bill?

a) Bills drawn on stamped paper, by Document Writers

b) Bills supported by documents c) Where the bills are supported by

RRs, LRs or BoL which are otherwise known as documents of title to goods

d) Where the bills are not supported by documents of title to goods

33 What do you mean by Supply Bills?

a) Bills arising on account of supply of goods to Government

b) Bills submitted by the Suppliers for collection

c) Bills sent by various traders for the supply of stationery / furniture etc. to the Bank


34 In case of BGs issued on behalf of partnership firm the counter guarantee must be signed by a) at least two partners of the firm b) all the partners of the firm c) Managing Partner of the firm d) Managing Partner and another

partner 35 What are the main statements used for analysis of Financial Statements

a) Balance Sheet

b) Balance Sheet and Profit & Loss Account

c) Balance Sheet , Profit & Loss Account and Funds Flow Statement

d) Balance Sheet, Profit & Loss Account, Funds Flow Statement and Cash Flow statement

36 Which one of the following is not a Current Liability? a) Income tax dues payable

b) Term Loan installments payable within a year

c) salaries / rents / wages payable

d) Long Term Deposits obtained to supply goods on credit

37 What do you mean by PBDIT? a) Profit before depreciation, interest

and taxes b) Profit before discount, interest and

taxes c) Net Profit d) Operational profit

38 What do you mean by Net Working Capital? a) Total working capital required by

the unit b) Liquid surplus (i.e. CA CL)

c) Working capital limits sanctioned by the Bank

d) Margin of working capital brought in by the borrowing unit


Page 5 of 141

39 What do you mean by TNW? a) Fixed Assets Long Term

Liabilities b) Total Capital of the unit

c) Capital + free reserves intangible assets

d) None of the above 40 Which one of these ratios is not a Liquidity ratio?

a) Acid Test Ratio (CA-Stocks/Inventory/(CL-Bank Borrowings)

b) TOL / TNW (Total Outside Liabilities/Tangible Net Worth)

c) Current Ratio (Current Assets/Current Liabilities)

d) Quick Ratio (Current Assets-Stocks or Inventory/Current Liabilities)

41 Which one of these ratios is not a Operating Ratio? a) Inventory Turnover Ratio(Net

Sales / Inventory) b) Gross Profit Margin Ratio(Gross

Profit/Total Sales x 100) c) Average collection period

days/months(Sundry Debtors/Credit Sales X 365)

d) Assets Turnover Ratio(Net Sales / Total Assets)

42 Which one of these ratios is not a Profitability Ratio? a) Gross Profit Margin Ratio b) Return on Capital Employed

(PBDIT/Total Assets) c) Net Profit Margin Ratio(Net Profit

/ Total Assets x 100) d) TOL/TNW

43 Which one of these ratios is not a Coverage Ratio? a) Debt Service Coverage Ratio

(PAT+Depreciation /instalments) b) Gross DSCR (PAT+Dep.+ Interest

/ Instalments + Interest) c) Interest Coverage ratio

(PBDIT/Interest) d) TOL/TNW

44 Which one of these ratios is not a leverage ratio? a) Debit / Equity Ratio (Term

Liabilities/ TNW) b) Assets Turnover ratio (Sales / Total

Assets) c) TOL/TNW d) None of the above

45 What is a healthy practice in funds flows? a) long term deficit must be met from

short term sources b) long term deficit must be met from

long term sources c) short term deficit must be met

from long term sources d) short term deficit must be met from

short term sources 46 Break-even analysis is useful to find out

a) Break-even Fixed Assets b) Break-even sales c) Break-even staff strength d) None of these

47 Sensitivity analysis does not study the impact of profits on account of changes in the following:- a) Volume of sales b) Price of Product c) Costs of production d) Volume of production

48 What do you mean by contribution? a) Fixed Cost Variable Cost b) Variable Cost Fixed Cost c) Sales Price Variable Cost d) Sales Price Fixed Cost

49 Under New CRA, both borrower rating and facility rating is required under a) Simplified Regular b) Regular Model c) Simplified Model d) None of these


Page 6 of 141

50 We have to prepare both Borrower wise and Facility wise rating for Customers whose FB+NFB Requirements are above a) Rs.50 lacs b) Rs.2 crores c) Rs.25 lacs d) Rs.5 crores

51 As per the Basel II norms, the Credit Conversion Factor for Documentary LCs is a) 20% b) 25% c) 50% d) 100%

52 Benchmark levels for Current Ratio for other than Manufacturing units with FBWC limits < Rs. 5 crores is (as per loan policy) a) 1.30 b) 1.00 c) 1.20 d) 1.33

53 Cost of Sales is a) Cost of Production + Selling,

General & Administration Exp b) Cost of Production - Non Operating

Expenses c) Cost of Production + Op Stock of

SIP - Cl Stock of SIP d) Cost of Production + Op. St. of FG

- Cl. St. of FG 54 While analyzing Balance Sheet , Deferred Tax Assets are classified as

a) Current Assets b) Non Current Assets c) Fixed Assets d) Intangible Assets

55 Benchmark levels for Project Debt Equity as per loan policy is a) 3:1 b) 4:1 c) 1:1 d) 2:1

56 Substantial Exposure is reckoned as ------ % of Bank's Capital Funds for a Group of borrowers a) 5.00 b) 10.00 c) 2.5 d) 15.00

57 Cash Flow Statement classifies cash flows from these activities a) Operating, Accounting &

Financing b) Financing & Investing

c) Operating & Investing d) Operating, Investing & Financing 58 To ensure 'End Use of Funds', the best tool is

a) Cash Flow Statement b) Operating Statement c) Cash Budget d) Funds Flow Statement

59 While analyzing Balance Sheet, Software related CAPEX is classified as a) Current Assets b) Intangible Assets c) Fixed Assets d) Non Current Assets

60 While analyzing Balance Sheet , Advances paid to suppliers of raw materials' is classified as a) Non Current Assets b) Intangible Assets c) Fixed Assets d) Current Assets

61 While analyzing Balance Sheet , 'Advances to suppliers of Capital Goods' is classified as a) Current Assets b) Intangible Assets c) Fixed Assets d) Non Current Assets

62 Receivables to Gross Sales falls in category of a) Liquidity ratios b) Solvency ratios c) Turnover ratios d) Coverage ratios


Page 7 of 141

63 Current Ratio benchmarks for 'trade' are a) 1 for limit upto Rs.1 crore and

1.20 thereafter b) 1.20 for limit upto Rs 5 crore and

1.33 thereafter c) 1 for limit upto Rs.5 crore and

1.20 thereafter d) 1 for limit upto Rs.2 crore and 1.20

thereafter 64 FFR II pertains to

a) Projections for next quarter b) P&L Funds flow of the next half year

c) P&L Funds flow of the previous half year

d) Projections of next half year 65 While analyzing Balance Sheet , 'Term Loan installments falling due in

_______' are classified as Current Liabilities a) within next 6 months b) within next 9 months c) within next 3months d) within next 12 months

66 According to Basel-II, a corporate is a unit having annual turnover of--- a) 50Cr & above for average 3 yrs b) 50Crore & above for average 5 yrs c) 100Cr & above for average 3 yrs d) 100Cr & above for average 5 yrs

67 For a limit of Rs.100 lac, sanctioned for an Agricultural Unit, you use which form of CRA? a) Trading Model (Simple) b) Trading Model (Regular) c) Manufacturing (Simple) d) Manufacturing (Regular)

68 As per the guidelines of the bank, audited financials need not be obtained for limits up to Rs-----. a)


Page 8 of 141

SME ADVANCES

Compiled by Shri M.Sai Chakradhar, Chief Manager (Training)

Please choose correct answer from the given alternatives

1. Power Jyothi is a a) SB account for fee collection. b) Current A/c for bill receipts. c) A Current A/c for fee collection d) None of the above.

2. e-DFS facility is for a) financing dealers of companies. b) financing share brokers. c) financing realtors. d) financing dealers of stock exchanges.

3. Whenever S Format is used for assessment, control/review of the proposal will be done in a) AC Format b) SA Format c) AS Format d) S-1 Format

4. RBI can conduct financial inspection of individual banks under a) Section 34 of RBI Act b) Section 35 of RBI Act c) Section 31 of RBI Act d) Section 32 of RBI Act

5. S Format is used for a) Assessment and appraisal of small loans. b) Assessment and appraisal of loans up to Rs.25.00 lakhs c) Assessment and appraisal of loans above Rs.25.00 lakhs. d) Assessment and appraisal of loans above Rs.5.00 Crores.

6. CGTMSE stands for a) Credit Guarantee Fund Trust for Micro and Small Enterprises b) Credit Guarantee Trust for Medium Scale Industries c) Credit General Trust for Medium and Small Enterprises. d) Collateral Guarantee Trust for Medium Scale Enterprises.

7. For advance to a retail trader to be classified under SBF, the limit should not exceed a) Rs.20.00 lakhs b) Rs.10.00 lakhs c) Rs.12.00 lakhs d) Rs.50.00 lakhs

8. Traders Easy Loan is sanctioned for a period of a) 2 years subject to annual review. b) 1 year only. c) 3 years subject to annual review. d) 2 years and no annual review.

9. The outer limit for original investment in P&M for a unit to be classified as micro enterprise is a) Rs.25.00 lakhs excluding L&B b) Rs.25.00 lakhs including L&B c) Rs.10.00 lakhs excluding L&B d) Rs.10.00 lakhs including L&B

10. A manufacturing unit with original investment in P&M more than Rs.5.00 Cr but doesnt exceed Rs.10.00 Cr is classified under MSMED act as a) Micro enterprise b) Small enterprise c) Medium enterprise d) Not applicable.

11. The outer limit for original investment in equipment of a service enterprise to be classified as micro enterprise is Rs. _________ lakhs. a) 5.00 b) 10.00 c) 7.50 d) 20.00


Page 9 of 141

12. SME car loan can be a. Extended to customer of other banks after obtaining NOC from their bank. b. Extended to customer of other banks without obtaining NOC from their bank

and the same need not be informed to their bank. c. Extended to customer of other banks without obtaining NOC from their bank,

but the sanction of loan to be advised. d. None of the above.

13. As per RBI guidelines, how much of the advances to Micro & Small enterprises should go to Micro enterprises (manufacturing) having investment in P&M up to Rs.5.00 lakhs and micro enterprises (services) having investment in equipment up to Rs.2.00 lakhs ? a) 40% b) 20% c) 50% d) 35%

14. As per RBI guidelines, how much of the advances to Micro & Small Enterprises should go to Micro enterprises (manufacturing) having investment in P&M above Rs.5.00 lakhs and up to Rs.25.00 lakhs and Micro enterprises (services) having investment in equipment above Rs.2.00 lakhs and up to Rs.10.00 lakhs. a) 40% b) 20% c) 50% d) 35%

15. As per RBI guidelines, what is the share of Micro enterprise advances as part of total advances to MSE (Micro & Small Enterprises). a) 50% b) 80% c) 60% d) 55%

16. As per Prime Ministers task force on MSMEs (Micro, small and medium enterprises), the credit growth rate recommended for this sector is a) 25% b) 10% c) 15% d) 20%

17. As per Prime Ministers task force on MSMEs (Micro, small and medium enterprises), the no of accounts growth rate recommended for this sector is a) 10% b) 15% c) 17% d) 12%

18. Recently SBI has launched SME POWER which is a) A bundle of 7 different products b) a bundle of 8 different products c) A bundle of 8 different C/As d) None of the above.

19. Which of the following are names offered under SME Power? a. power pack, power premium, power lite & power base b. power pack, power premium, power plan & power base c. power pack, power plan , power prudential & power core. d. Power pack, power proof, power plan & power core.

20. The variants under SME power are offered to SME customers who can maintain : a. QAB of Rs.20,000/- to Rs.5,00,000/- b. Monthly average balances of Rs.20,000/- to Rs.5,00,000/- c. QAB of Rs.50,000/- to Rs.5,00,000/- d. Monthly average balance of Rs.50,000/- to Rs.5,00,000/-

21. Of all the variants of SME Power, the superior variant is a. Power Pack b. Power premium c. Power core d. Power base

22. Of all the variants of SME Power, the inferior variant is a. Power gain b. Power premium c. Power base d. Power lite


Page 10 of 141

23. As per recent RBI guidelines a. No collateral should be accepted for all MSE sector manufacturing loans up to

Rs.10.00 lakhs. b. No collateral should be accepted for all MSE sector service enterprise loans

up to Rs.5.00 lakhs c. No collateral should be accepted for all MSE sector manufacturing & servoice

sector loans up to Rs.5.00 lakhs d. No collateral should be accepted for all MSE sector manufacturing and

service sector loans up to Rs.10.00 lakhs 24. SMECFL (SME collateral free loans) are available for limits

a. From Rs.5.00 lakhs to Rs.1.00 Crores. b. From Rs.10.00 lakhs to Rs.1.00 Crores. c. Up to Rs.10.00 lakhs. d. None of the above.

25. Primary security in the context of CGTMSE mean a. Assets created out of the credit facility b. Land & building of factory/office/ godown etc which pertains to the unit and

associated with the project and is unencumbered. c. Personal guarantee of the proprietor. d. All the above.

26. Advances to manufacturing units which are classified as medium enterprises under MSMED Act,2006 fall under the category of a. Priority sector advances. b. Non-priority sector C&I advances c. Priority sector C&I advances d. Indirect priority sector advances.

27. All manufacturing units defined in MSMED Act,2006 when engaged in exports are classified as priority sector advances. a. No, only Micro and small manufacturing units fall under the category of priority

sector. b. No, only Micro manufacturing units fall under the category of priority sector c. No, only small manufacturing units fall under the category of priority sector d. Yes, all units fall under the category of priority sector.

ANSWERS

1. c 2. a 3. c 4. b 5. c 6. a 7. a 8. a 9. a 10. c 11. b 12. c 13. a 14. b 15. c 16. d 17. a 18. c 19. a 20. a 21. a 22. c 23. d 24. d 25. d 26. b 27. a


Page 11 of 141

SME ASSET PRODUCTS

Compiled by Shri M.Sai Chakradhar, Chief Manager (Training)

Please choose the correct answer from the given alternatives :

1. The maximum amount of loan that can be sanctioned to a Manufacturing unit under SME Smart Score? a) Rs.10 Lacs b) Rs.5 Lacs c) Rs.50 Lacs d) Rs.25 Lacs

2. The minimum amount of Loan that can be sanctioned to a Manufacturing unit under SME Smart Score? a) Rs.5 Lacs b) Rs.25 Lacs c) Rs.10 Lacs d) Rs.2 Lacs

3. The margin stipulated for a term loan under SME Smart Score is______. a) 25% b) 20% c) 33% d) 30%

4. The minimum percentage of score that an applicant should get in order to avail a loan under SME Smart Score? a) 60% (with a minimum score of 50%

under each sub head) b) 75% (with a minimum score of 60%

under each sub head) c) 50% (with a minimum score of 45%

under each sub head) d) 70% (with a minimum score of 60%

under each sub head) 5. The maximum amount of loan that can be sanctioned under SME Smart Score for

a Trader / Service provider? a) Rs.100 Lacs b) Rs.50 Lacs c) Rs.60 Lacs d) Rs.25 Lacs

6. What percent of annual turn over can be financed as working capital under SME Smart Score for a manufacturing unit? a) 20% b) 15% c) 25% d) 30%

7. What percent of annual turn over can be financed as working capital under SME Smart Score for an unit dealing in Trade & Services? a) 25% b) 15% c) 20% d) 30%

8. The maximum repayment period that can be allowed for a term loan under SME Smart Score? a) 5 years excluding moratorium of 6

months b) 5 years including moratorium of 6

months c) 7 years including moratorium of 6

months d) 7 years excluding moratorium of 6

months 9. The age criteria stipulated for the promoter/ applicant to avail a loan under SME

Smart Score is___________. a) Min 21 Yrs- Max 65 Yrs. b) Min 21 Yrs- Max 70 Yrs. c) Min 18 Yrs- Max 65 Yrs. d) Min 18 Yrs- Max 60 Yrs.


Page 12 of 141

10. Which of the following is true? a) Loans not approved under SME

Smart Score can be financed under the normal credit dispensation based on considerations.

b) SME Smart Score is renewed once in 2 years and reviewed every year

c) The margins stipulated under SME Smart score are 25% for W.C. and 33% for T.L.

d) All the above

11. The maximum quantum of finance that can be extended under Traders Easy Loan? a) Rs.2 Crores b) Rs.10 Crores c) Rs.5 Crores d) Rs.50 Crores

12. The minimum quantum of finance that can be extended under Traders Easy Loan? a) Rs.0.25 Lacs b) Rs.0.50 Lacs c) Rs.1.00 Crore d) No minimum amount stipulated

13. Under Traders Easy Loan, finance can be extended upto _____ percentage of the realizable value of the property mortgaged. a) 50% b) 75% c) 70% d) 65%

14. Which of the following is True with respect to Traders Easy Loan? a) Open land should not be accepted

as a security. b) TDRs/NSCs can be accepted as a

collateral security c) Credit requirement is fixed at 20%

of Projected Annual Turn Over d) All the above

15. Which of the following target group is eligible to avail a loan under Traders Easy Loan? a) Oil Mills, Cotton ginning Mills b) Professional & Self employed c) Commission Agents engaged

foodgrains d) All the above

16. Which of the following is a feature of Traders Easy Loan? a) Stock statements are to furnished

quarterly i.e. Feb, May, Aug, Nov b) Limit sanctioned is valid for one

year. c) In case of C.C., the credit

summations should be atleast 200% of the C.C. limit sanctioned.

d) All the above

17. The quantum of finance that can be extended under Traders Easy Loan is____. a) 75% of the capital cost to be

incurred for business or 65% of realizable value of the property or 20% of the annual projected turn over.

b) 75% of the capital cost to be incurred for business or 65% of realizable value of the property or 25% of the annual projected turn over.

c) 75% of the capital cost to be incurred for business or 75% of realizable value of the property or 20% of the annual projected turn over.

d) 70% of the capital cost to be incurred for business or 65% of realizable value of the property or 20% of the annual projected turn over.


Page 13 of 141

18. Which of the following is not true with respect to Traders Easy Loan? a) Stocks statements are to be

obtained at monthly intervals. b) Traders Easy Loan can be

sanctioned as DL/TL/CC. c) The primary security for the loan

would be hypothecation of Stock only.

d) Rice Mills can also be considered for financing.

19. The maximum quantum of loan that can be extended under SME Credit Card is: a) Rs.10 Lacs b) Rs.20 Lacs c) Rs.10 Lacs fro Traders & Rs.20

Lacs for Manufacturing Units d) Rs.25 Lacs

20. The SME Credit Card is sanctioned for a period of ________. a) 2 years, subject to annual review b) 3 years, subject to annual review c) One year d) 3 years

21. The minimum score, an applicant should get to be eligible for availing finance under SME Credit Card is: a) 60% b) 65% c) 70% d) 50%

22. The maximum age criteria stipulated under SME Credit Card is___________. a) 65 years b) 70 Years c) 66 Years d) No maximum age stipulated

23. Which of the following is true with respect to SME Credit Card? a) No collateral is insisted upon for

SSI units b) For SBF units, collateral/third party

guarantee is obtained if the loan is more than Rs.25,000/-

c) Maximum repayment for the term loan component is 5 years.

d) All the above 24. Which of the following is true with respect to SME Credit Card?

a) The limit can be reviewed if the credit summations are 50% of the projected turn over.

b) A repayment schedule has to be fixed if the credit summations are less than 50% of Projected Annual turn over.

c) Both CC and TL can be sanctioned under the scheme.

d) All the above. 25. Under SME Credit Card scheme, which of the following is Not true?

a) Cheque book to be marked as SME Credit Card

b) Stock statement is obtained once in a year, preferably in last quarter

c) Borrower can be issued a Photo Identity Card

d) Detailed Opinion reports are to compiled and should be on record.

26. Who among the following is not eligible for finance under SME Credit Card? a) Self employed with a credit

requirement of Rs.10 Lacs b) Professionals with credit

requirement of Rs.8 Lacs c) Village Industries with a credit

requirement of Rs.7.5 Lacs d) SSI units with credit requirement of

Rs.15 Lacs 27. Which product do you suggest to a small manufacturer whose credit limit

requirement is Rs.25 Lacs and who wishes that the facility can be sanctioned for a period of 2 years? a) SME Credit Card b) Traders Easy Loan c) SME Smart Score d) SME Credit Plus


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28. The maximum amount of Loan that can be extended under Doctor Plus Scheme is ________. a) Rs.1 Crore b) Rs.2 Crores c) Rs.5 Crores d) Rs.10 Crores

29. Who among the following is eligible to avail finance under Doctor Plus scheme? a) Partnerships, Individuals b) Corporates c) Trusts with powers to borrow d) All the above

30. The minimum DSCR stipulated for loans under Doctor Plus is ________. a) 1:1.5 b) 1:1.75 c) 1:1.15 d) 1:1.33

31. Which of the following is Correct with respect to Doctor Plus Scheme? a) The loan can be sanctioned as

Medium Term Loan/Cash Credit b) The loan can be sanctioned as an

Overdraft. c) The loan can also be sanctioned as

Demand Loan. d) The loan can be sanctioned as a

Medium Term Loan/Cash Credit/Demand Loan/O.D.

32. Maximum Moratorium that can be allowed for loans sanctioned under Doctor Plus scheme is: ____________. a) 6 months b) 12 months c) 18 months d) Till the doctor's practice is stabilized

subject to a maximum of 18 months.

33. The maximum amount that can be sanctioned to an individual under Doctor Plus scheme at Metro / Urban centres is: a) Rs.10 Crores b) Rs.5 Crores c) Rs.2 Crores d) Rs.1Crores

34. Which of the following is True under Doctor Plus Scheme? a) The collateral security for loans

above Rs.25 lacs and upto Rs.1 Crore should be at least 25% of the loan amount. Alternatively, eligible accounts may be covered under CGTMSE scheme.

b) The collateral security for loans for loans sanctioned to Micro & Small Enterprises above Rs.1 Crore should be at least 25% of the loan amount and also Personal guarantee of the promoters.

c) The primary security will be hypothecation of Assets financed by the Bank

d) all the above

35. Which of the following can be considered for finance under Doctor Plus scheme? a) Setting up clinic and Purchase of

Ambulance b) Expansion/renovation etc.

c) Setting up Nursing home and Purchase of Computers etc.

d) All the above 36. The margin stipulated for loans upto Rs.10 Lacs under Doctor Plus scheme?

a) 15% b) 25% c) 20% d) 10%

37. The margin stipulated for loans above Rs.10 lacs and upto Rs.5 crs is: a) 25% b) 20% c) 30% d) 15%


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38. Which of the following is NOT a salient feature of the product Doctor Plus? a) Multiple disbursements over a

period of 24 months form date of sanction based on requirements can be made.

b) 50% concession over the Card rates in Upfront Fee/Processing Charges is extended.

c) The inspection of the unit should be carried out at Monthly/quarterly intervals.

d) All eligible advances can be covered under CGTMSE.

39. Maximum marks under Scoring Model for Doctor Plus scheme_____. a) 50 b) 100 c) 75 d) 90

40. Which of the following is NOT true with respect to Doctor Plus scheme? a) The rate of Interest for limits up to

Rs.25 lacs will be based on Credit Scoring Model.

b) Minimum score of 40 on credit scoring model is required to be eligible for the loan.

c) For limits above Rs.25 lacs and up to Rs.10 crores, the Pricing will be based on CRA rating.

d) Units with CRA Rating below SB 8 can be considered subject to premium pricing of 100 basis points.

41. The hurdle score for Personal Details and Business scoring under Scoring Model of Doctor Plus scheme (for loans upto Rs.25 Lacs) are ___ & _______ respectively (out of 32 & 43 respy). a) 15, 20 b) 20,25 c) 17,22 d) 16,23

42. For Non Allopathic doctors (Unani, Ayurvedic,Homeopathic), the maximum quantum of loan that can be extended under Doctor Plus is ____. a) Rs.50Lacs b) Rs.20 Lacs c) Rs.25 Lacs d) Rs.10 Lacs

43. The maximum quantum of finance that can be extended under School Plus is___. a) Rs.10 Crores b) Rs.5 Crores c) Rs.20 Crores d) No Maximum cap

44. Which of the following is NOT true with respect to School Plus scheme? a) It can be extended to Primary and

higher secondary schools. b) Coaching institutes can also be

financed under the scheme and no CRA is required.

c) Graduation & Post Graduation colleges can also be financed.

d) Government Aided schools/colleges are also eligible under the Scheme.

45. The margin stipulated under School Plus is_______. a) 15% b) 25% c) 20% d) 33%

46. Can a Computer training institution be extended finance under School Plus? a) Yes b) No. c) No. They can be considered under

regular CRA model or mortgage loan only.

d) Yes subject to collateral coverage of 75%.


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47. Which of the following is True with respect to School Plus? a) Purchase of Laboratory & Sports

equipments, purchase of play ground and buses etc. can be financed under the scheme.

b) Maximum repayment allowed is 84 EMIs only.

c) More than one loan can be sanctioned subject to repayment capacity of the unit.

d) All the above.

48. The maximum amount of loan that can be sanctioned under Rent Plus is:_____. a) Rs.10 Crores b) Rs.5 Crores c) Rs.2 Crores d) Rs.1 Crore

49. Margin stipulated under Rent Plus scheme is___________. a) 30% b) 25% c) 40% d) 33%

50. The maximum repayment allowed for term loans sanctioned under Rent Plus scheme is_______. a) 7 years or the residual lease period

whichever is less. b) 5 years or the residual lease period

whichever is less c) 7 years or the residual lease period

whichever is less, subject to a moratorium of 6 months.

d) 7 years or the residual lease period whichever is higher.

51. The minimum amount that can be sanctioned under Rent Plus is______. a) Rs.1,00,000 b) Rs.5,00,000 c) Rs.50,000 d) Rs.25,000

52. The quantum of finance under Rent Plus scheme will be arrived as_______. a) 60% of the gross rental income for

the residual period (net of advance rent received & statutory dues) or 85% of the market value of the property whichever is less.

b) 85% of the gross rental income for the residual period (net of advance rent received & statutory dues) or 60% of the market value of the property whichever is less.

c) 60% of the gross rental income for the residual period (net of advance rent received & statutory dues) or 75% of the market value of the property whichever is less.

d) 75% of the gross rental income for the residual period (net of advance rent received & statutory dues) or 85% of the market value of the property whichever is less.

53. In case of non corporate borrower, the Minimum and maximum age of the applicant, stipulated for loans under SMECFL are: a) 21,65 b) 18,65 c) 21,66 d) 21,70

54. The maximum amount of loan that can be sanctioned under SMECFL is: a) Rs.2 Crores b) Rs. 1 Crore c) Rs.50 Lacs d) Rs.75 Lacs

55. Which of the following is true with respect to SBI SME CFL? a) For Loans below Rs.25 Lacs,

preliminary screening will be as per SME Smart Score scoring model.

b) For Loans above Rs.25 Lacs and upto Rs.1 Crore, Simplified CRA will be applicable.

c) WC is to be renewed every two years and review will be annually.

d) All the above


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56. Which of the following is True with respect to assessment of limits under SBI SME CFL? a) The Working capital eligibility for

manufacturing units, would be 20% of projected turn over & the eligibility for Term Loans is 75% of the project cost.

b) The working capital eligibility for service enterprises would be 15% of projected revenue and for term loans it is 75% of the project cost.

c) Maximum amount of finance is Rs.1 Crore and loans upto Rs.5 Lacs have to be covered under "SBI Micro Loans".

d) All the above.

57. The one time guarantee fee payable to CGTMSE would be in the range of ___. a) 0.75 to 1.00 b) 0.50 to 2.00 c) 0.75 to 2.00 d) 0.50 to 1.50

58. The upfront guarantee fee payable to CGTMSE for loans upto Rs.5 lacs is____. a) 0.75 b) 1.00 c) 1.50 d) No fee

59. The upfront guarantee fee payable to CGTMSE for loans above Rs.5 lacs and upto Rs.100 Lacs is____. a) 0.50 b) 1.00 c) 0.75 d) 1.50

60. The upfront guarantee fee payable to CGTMSE for loans upto Rs.5 lacs in North East region is ______. a) 1.00 b) 1.50 c) 0.75 d) 0.50

61. The upfront guarantee fee payable to CGTMSE for loans above Rs.5 lacs and upto Rs.50 Lacs in North East region is ______. a) 0.85 b) 2.00 c) 1.00 d) Fee waived for NE region

62. The upfront guarantee fee payable to CGTMSE for loans above Rs.50 lacs and upto Rs.100 Lacs in North East region is ______. a) 0.85 b) 1.00 c) 2.00 d) Fee waived for NE region

63. The annual fee payable to CGTMSE on loans above Rs.50 Lacs and upto Rs.1 Crore is_______. a) 1.00 b) 0.75 c) 1.50 d) 0.50

64. The annual fee payable to CGTMSE on loans above Rs.5 Lacs and upto Rs.50 Lacs is_______. a) 0.75 b) 1.00 c) 0.50 d) Waived

65. The CGTMSE trust shall pay 75% of the guaranteed amount on preferring of eligible claim by the lending institution, within ___ days. Subject to the claim being otherwise found in order and complete in all respects. a) 30 b) 60 c) 90 d) 45


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66. The annual fee for the credit facilities sanctioned as on March31st should be paid to CGTMSE on or before ________. a) 30th April b) 30th September c) 31st May d) 30th June

67. Which of the following is NOT true with respect to CGTMSE? a) The credit facilities sanctioned to

Self Help Groups cannot be covered under the scheme.

b) The guarantee cover will be for a period of 5 years where only working capital facilities are sanctioned, subject to payment of annual service fee.

c) Small road and water transport loans are also eligible for guarantee cover.

d) Existing borrowers who have already availed finance cannot be covered under the scheme.

68. The maximum amount of loan that can be sanctioned under SBI Micro Loan is___. a) Rs.10 Lacs b) Rs.25 Lacs c) Rs.5 Lacs d) Rs.50 Lacs

69. The demand loan sanctioned under SBI Micro Loan is repayable within _____. a) 1 year b) 5 years c) 3 years d) No demand loan is sanctioned

70. SME-1, is obtained for a) Letter of Arrangement b) Agreement of Loan Cum

Hypothecation c) Guarantee Agreement d) Link Letter

71. SME-2, is obtained for, a) Agreement of Loan Cum

Hypothecation. b) Letter of Arrangement

c) Link Letter d) Guarantee Agreeement. 72. SME-3, is obtained for,

a) Letter of Arrangement b) Agreement of Loan Cum Hypothecation

c) Guarantee Agreement d) Link Letter 73. SME-12, is obtained for,

a) Letter of Arrangement b) Link Letter c) Guarantee Agreement d) Revival Letter

74. SME-11, is obtained for, a) Link Letter b) Agreement for Hypothecation c) Revival Letter d) Guarantee Agreement

75. Under SME Credit Plus, ____% of aggregate working capital limit subject to a maximum of Rs.25 Lacs can be sanctioned. a) 10% b) 20% c) 25% d) 15%

76. The maximum time period allowed for repayment of SME Credit Plus is _____. a) 3 months b) 1 month c) 6 months d) 2 months.

77. SME Credit Plus can be sanctioned for which of the following purposes? a) tax payments b) repairs to machinery c) any other contingency d) all the above


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78. Which of the following is TRUE with respect to SME Credit Plus? a) It is sanctioned to meet sudden

and unforeseen expenditure/bulk orders.

b) It is sanctioned as a additional working capital limit by way of clean cash credit.

c) It can be sanctioned to new borrowers also as a marketing tool.

d) All the above. 79. The maximum quantum of finance that can be extended under Stand by Line of

Credit is: ___________. a) Rs.5 Crores b) Rs.2 Crores c) Rs.1 Crores d) Rs.10 Crores

80. Under Stand by Line of Credit , ____% of working capital limit subject to a maximum of Rs.5 Crores can be sanctioned. a) 10 b) 20 c) 15 d) 25

81. The maximum time allowed for repayment of Stand by Line of Credit is____. a) 1 month b) 2 months c) 3 months d) 6 months

82. The maximum amount of loan that can be sanctioned under General Purpose Term loan for SSI sector is___. a) Rs.1 Crores b) Rs.2 Crores c) Rs.50 Lacs d) Rs.5 Crores

83. Which of the following is true with respect to General Purpose Term Loan for SSI sector? a) Normal repayment allowed is 3

years and can be extended upto 5 years in deserving cases.

b) The unit should have earned profits in preceding 3 years.

c) The margin stipulated is 25% d) All the above 84. The maximum amount of finance that can be extended under Open Term Loan

(Manufacturing sector) is: a) Rs.250 Lacs b) Rs.500 Lacs c) Rs.100 Lacs d) Rs.200 Lacs

85. Under Open Term Loan, the sanction is valid upto: a) 6 months b) 3 months c) 12 months d) 1 month

86. Which of the following is a feature of Open Term Loan? a) It's a pre sanctioned term loan limit

with the option of multiple disbursements.

b) Non customers can also be considered subject to fulfillment of take over norms and after obtaining opinion reports from existing Bankers.

c) DSCR should be atleast 1.75 d) All of these 87. The maximum amount of finance that can be extended under Open Term Loan

(For Services sector) is: a) Rs.250 Lacs b) Rs.200 Lacs c) Rs.100 Lacs d) Rs.50 Lacs

88. The maximum quantum of loan that can be sanctioned to a Commission Agent under Arthias Plus is:_____ a) Rs.25 Lacs b) Rs.50 Lacs c) Rs.1 Crore d) Rs.10 Lacs


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89. Which of the following is true in respect of Arthias Plus? a) It is a Cash Credit facility against

hypothecation of book debts, not older than 6 months.

b) To be liquidated within 6 months and to be renewed annually.

c) The margin stipulated is 40%. d) All the above 90. The maximum quantum of loan that can be sanctioned under SBI Shoppe

is____. a) Rs.20 Lacs b) Rs.50 Lacs c) Rs.100 Lacs d) Rs.200 Lacs

91. The product in which two term loans are sanctioned, one for Housing and another for setting up an office/shop is _____. a) SBI Super Shoppe b) SBI Home Shoppe c) SBI Shoppe Plus d) SBI Shoppe

92. The quantum of finance that can be extended under SBI Shoppe plus is____. a) 1st Term Loan as per Housing

loan Scheme and 75% of cost of setting up office/shop as 2nd T.L

b) 75% of Cost of total Project

c) Both the term loans will be considered as Commercial Loans

d) Both the term loans will be considered as Housing Loans.

93. Which of the following is TRUE with respect to Car Loans to SME units? a) Finance can be extended for

purchase of car/ sports utility vehicle/ multi utility vehicle by Promoter/ his family members.

b) Maximum loan amount would be 2.5 times to Net annual Income and there is no ceiling in loan amount.

c) Margins prescribed are 15% and no additional security will be insisted upon. Maximum amount of loan for a used vehicle is Rs.15 lacs

d) All the above

94. The quantum of finance that can be extended to a Corporate under SBI Fleet Finance Scheme is: a) Rs.10 Crores b) Rs.7.5 Crores c) Rs.5 Crores d) Rs.2.5 Crores

95. The minimum Average DSCR (gross) as prescribed in the scheme "SBI Fleet Finance Scheme" is: a) 1.75 b) 1.50 c) 1.33 d) 2.50

96. Which of the following SME Asset Products are withdrawn by the bank. a) Auto Clean b) Swarojgar Credit Card c) Cyber Plus d) All the above

97. Maximum amount of loan that can be sanctioned under SME Construction Equipment Loan ( in Metros) is____. a) Rs.50.00 Cr b) Rs.25.00 Cr c) Rs.15.00 Cr d) Rs.60.00 Cr

98. Maximum amount of loan that can be extended under SBI-Dental Equipment Plus scheme and the minimum DSCR required are _____ & _______ respectively. a) Rs.20 Lacs & 1.5 b) Rs.20 Lacs & 1.75 c) Rs.10 Lacs & 1.5 d) Rs.10 Lacs & 1.75


Page 21 of 141

99. The minimum amount of loan under Paryatan Plus is_____. a) Rs.10 Lacs b) Rs.2 Lacs c) Rs.5 Lacs d) No minimum is stipulated.

100. Margin stipulated for purchase of used vehicles under Paryatan Plus is:_____ a) 30% b) 50% c) 40% d) 33%

ANSWERS

1. c 2. a 3. c 4. a 5. d 6. a 7. b 8. a 9. c 10. d 11. c 12 a 13. d 14. d 15. d 16. d 17. a 18. a 19. a 20. b 21. a 22 d 23. d 24. d 25. d 26. d 27. c 28. d 29. d 30. a 31. a 32 b 33. b 34. d 35. d 36. a 37. b 38. c 39. c 40. d 41. a 42 d 43. d 44. b 45. a 46. c 47. d 48. a 49. c 50. a 51. c 52 a 53. a 54. b 55. d 56. d 57. a 58. a 59. b 60. c 61. a 62 a 63. a 64. b 65. a 66. c 67. d 68. c 69. c 70. a 71. a 72 c 73. b 74. c 75. b 76. d 77. d 78. d 79. a 80. c 81. b 82. c 83. d 84. a 85. c 86. d 87. c 88. a 89. d 90. a 91. c 92. a 93. d 94. a 95. b 96. d 97 a 98. c 99. b 100. c


Page 22 of 141

INTERNATIONAL BANKING (UCPDC)

Compiled by SRI R PRABHAKARA RAO, Manager (Training)

1. UCPDC in the context of International Banking stands for _______________. a) Uniform Customs and

Practice for Documentary Credits

b) Universal Customs and Procedures for Documentary credits

c) Universal Customs and Practice for Documentary credits

d) Uniform Customs and Procedures for Documentary credits

2. Uniform Customs and Practice for Documentary Credits (UCPDC), Revision 2007 is published by __________________. a) International Chamber of

Commerce (ICC) b) World Chamber of Commerce

c) International Monetary Fund (IMF)

d) World Bank 3. The revised version of 2007 of UCPDC is with effect from ___________.

a) 01.01.2007 b) 01.01.2010 c) 01.07.2007 d) 01.07.2010

4. The current version of UCPDC is ____________. a) UCPDC 500 b) UCPDC 600 c) UCPDC 700 d) UCPDC 800

5. International Chamber of Commerce (ICC) is Head quartered at _________. a) Washington D.C. b) New York c) Paris d) London

6. URC rules are published by ICC. URC stands for _______________. a) Universal Rules for Collection b) Universal Realisation of Credits c) Uniform Rules & Customs d) Uniform Rules for Collection

7. The no. of articles in current version of UCPDC is ________. a) 39 b) 29 c) 19 d) 49

8. Article 2 of UCPDC is about ___________. a) Definitions of Applicant,

advising Bank, Credit etc. b) Credit Vs. Contracts

c) Documents Vs. Goods d) Amendments to a Credit. 9. Which of the following is an Import L/c?

a) L/c opened by Citi Bank, Mumbai in favour of SBI, New York.

b) L/c opened by SBI, New York in favour of Citi Bank, Mumbai

c) L/c opened by Citi Bank, Mumbai in favour of Citi Bank, New Delhi

d) None of these

10. The current version of URC, which is a publication of ICC is _______. a) URR 522 b) URC 522 c) URC 725 d) URR 725

11. Banks deal with documents and not with goods, services or performance to which the documents may relate. This is as per Article _______ of UCPDC. a) 5 b) 22 c) 25 d) 29


Page 23 of 141

12. Article ____ of UCPDC (ICC 600) illustrates about Issuing Bank undertaking. a) 7 b) 15 c) 22 d) 29

13. Which of the following is True with respect to revised version of UCPDC 600? a) The no. of articles have been

reduced to 49 as against 59 in the pre revised version

b) The no. of articles have been reduced to 39 as against 49 in the pre revised version.

c) There is no change in No. of Articles as equal no. of articles are deleted and are added.

d) No. of Articles have been doubled when compared to pre revised version.

14. Article ____ of UCPDC (ICC 600) portrays Confirming Banks undertaking. a) 5 b) 8 c) 11 d) 15

15. The other two important publications of International Chamber of Commerce, other than UCPDC,600 are ______________. a) URC, URR b) UCPDC 700 & 800 c) UCPDC I & II d) None of the above.

16. Unloading from one means of conveyance and reloading to another means of conveyance (whether or not in different modes of transport) during the carriage from the place of dispatch to the place of final destination stated in the Credit is known as ___________. a) Bill of Lading b) Partial Shipment c) Sea Way Bill d) Transhipment

17. UCPDC is in use in more than _______ countries. a) 175 b) 225 c) 255 d) 301

18. Which Article of UCPDC deals with Transferable Credit (L/C)? a) 33 b) 35 c) 38 d) 39

19. A bank assumes no liability or responsibility for the consequences arising out of the interruption of its business by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its control. This is as per Article _____ of UCPDC,600. a) 36 b) 37 c) 38 d) 39

20. Which article of UCPDC deals with Extension of Expiry Date or Last Day for Presentation? a) 22 b) 25 c) 29 d) 31

21. Which article of UCPDC deals with Partial Drawings and Shipments? a) 22 b) 29 c) 30 d) 31

22. Which of the following statements is True with regard to Advising Bank? a) An advising bank may utilize

the services of another bank (second advising bank) to advise the credit and any amendment to the beneficiary.

b) An advising bank cannot utilize the services of another bank (second advising bank) to advise the credit and any amendment to the beneficiary.


Page 24 of 141

c) An advising bank, after advising the Credit, cannot advise any further amendment to the beneficiary.

d) An advising bank which advises a credit must add its confirmation.

23. Except as otherwise provided by article 38, a credit can neither be amended nor cancelled without the agreement of the issuing bank, the confirming bank, if any, and the beneficiary. This is as per Article _____ of UCPDC,600. a) 2 b) 10 c) 19 d) 22

24. Which of the following is True with respect to UCPDC provisions? a) A credit is irrevocable even if

there is no indication to that effect.

b) All credits are normally revocable even if there is no indication to that effect.

c) A credit is irrevocable when it is requested by the Applicant.

d) All the above 25. A presentation including one or more original transport documents subject to

Articles 19, 20, 21, 22, 23, 24 or 25 must be made by or on behalf of the beneficiary not later than _______ calendar days after the date of shipment as described in these rules, but in any event not later than the expiry date of the credit. a) 15 b) 21 c) 30 d) 60

26. Which Article of UCPDC deals with Examination of Documents? a) 14 b) 15 c) 21 d) 22

27. Which of the following is True as per UCPDC,600? a) Beneficiary means the party in

whose favour a credit is issued.

b) Applicant means the party on whose request, the credit is issued.

c) Both a & b d) None of these 28. Under Force Majeure Clause, as per Article 36 of UCPDC, Banks __________

a) assumes liability / responsibility for the interruption of its business by Acts of God, riots, civil commotions, wars etc., if it is covered by proper Insurance.

b) assumes responsibility but No liability for the interruption of its business by Acts of God, riots, civil commotions, wars etc., however such liability shall not exceed the amount mentioned in the Credit (L/C).

c) assumes liability but not responsibility for the interruption of its business by Acts of God, riots, civil commotions, wars etc., however such liability shall not exceed the amount mentioned in the Credit (L/C).

d) assumes no liability or responsibility for the consequences arising out of the interruption of its business by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its control.

29. Which article of UCPDC deals with Bank to Bank reimbursement? a) 2 b) 10 c) 11 d) 13


Page 25 of 141

30. Which of the following is True with respect to UCPDC,600? a) Confirming bank means the

bank that adds its confirmation to a credit upon the issuing banks authorization or request.

b) Confirmation means a definite undertaking of the confirming bank, in addition to that of the issuing bank, to honour or negotiate a complying presentation.

c) Both a & b d) None of the above 31. As per Article 14 of UCPDC, a nominated bank, a confirming bank, if any, and

the issuing bank shall each have a maximum of ______ banking days following the day of presentation to determine if a presentation is complying. a) 5 b) 7 c) 9 d) 11

32. Which Article of UCPDC deals with Discrepant Documents, Waiver and Notice etc.? a) 13 b) 14 c) 15 d) 16

33. You have received a Letter of Credit advised by SBI, International Services Branch (ISB), Mumbai issued by Barclays Bank, New York to be advised to M/s PQR & Sons, Hyderabad. The beneficiary wanted to know whether the L/C received, is revocable or irrevocable? You would _____________. a) Contact SBI, ISB, Mumbai b) Contact L/C opening Bank c) All L/Cs, if otherwise not

mentioned, are irrevocable. d) In the credit (L/C), a mention must

be there as to whether it is revocable or irrevocable.

34. Which of the following is True in connection with amendment of L/Cs? a) A bank that advises an

amendment should inform the bank from which it received the amendment of any notifi-cation of acceptance or rejection

b) Partial acceptance of an amendment is not allowed and will be deemed to be notification of rejection of the amendment.

c) A provision in an amendment to the effect that the amendment shall enter into force unless rejected by the beneficiary within a certain time shall be disregarded.

d) All of these

35. Article 18 of UCPDC deals with ____________. a) Bill of Lading b) Transport Documents c) Quality Certificate d) Commercial Invoice

36. Which Article deals with Availability, Expiry Date and Place for Presentation of Documents? a) 2 b) 5 c) 6 d) 8


Page 26 of 141

37. Which of the following is True with regard to Confirming Bank? a) A confirming bank is

irrevocably bound to honour or negotiate as it adds its confirmation to the credit.

b) A confirming bank undertakes to reimburse another nominated bank that has honoured or negotiated a complying presentation and forwarded the documents to the confirming bank.

c) If a bank is requested to confirm a credit, but is not prepared to do so, it must inform the issuing bank with-out delay and may advise the credit without confirmation.

d) All the above

38. Which article of UCPDC deals with Bill of Lading? a) 20 b) 22 c) 24 d) 29

39. As per Article ______, A bank has no obligation to accept a presentation outside of its banking hours. a) 30 b) 31 c) 33 d) 39

40. As per Article 31 of UCPDC, which deals with Partial shipments, which of the following is Correct? a) Only partial shipments are

allowed, but not partial drawings.

b) Partial drawings or shipments are allowed.

c) Only partial drawings are allowed, but not partial shipments.

d) Both partial shipments and drawings are not allowed.

41. Which of the following is True with respect to Commercial Invoice? a) It need not be signed. b) It should be signed & stamped. c) It should be countersigned by

Customs, after shipment. d) It should preferably in triplicate.

42. Which Article of UCPDC deals with Tolerance in Credit Amount, Quantity and Unit Prices? a) 22 b) 25 c) 30 d) 33

43. If a drawing or shipment by instalments within given periods is stipulated in the credit and any instalment is not drawn or shipped within the period allowed for that instalment, the credit ceases to be available for that and any subsequent instalment. This is as per Article _____ of UCPDC,600. a) 30 b) 32 c) 33 d) 39

44. You have received a set of documents for negotiation and have observed that documents require scrutiny and comparison with original credit for discrepancies if any. You have ______ working days to do so. a) Five b) Six c) Seven d) 21


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45. Which of the following is True? a) A credit must state the bank

with which it is available or whether it is available with any bank.

b) A credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation.

c) A credit must not be issued available by a draft drawn on the applicant.

d) All of the above.

46. As per Article 20 of UCPDC, a Bill of Lading _______________. a) Must indicate the name of the

carrier and it should be signed.

b) Must indicate the port of loading and the port of discharge stated in the credit.

c) indicate that the goods have been shipped on board, a named vessel at the port of loading stated in the credit.

d) All the above

47. As per Article 30, which of the following is correct? a) The words "about"/

"approximately" used in connection with the amount of the credit or the quantity/unit price are to be construed as allowing a tolerance not to exceed 10% more or 10% less.

b) A tolerance not to exceed 5% more or 5% less than the quantity of the goods is allowed, provided the credit does not state the quantity in terms of a stipulated number of packing units/individual items and the total amount of the drawings does not exceed the amount of the credit.

c) Both a & b.

d) Tolerance which was upto 10% has now been reduced to zero.

48. The last Article of UCPDC i.e. Article 39 deals with ___________. a) Assignment of Proceeds b) Transferable Credits c) Force Majeure d) Hours of Presentation

49. Which of the following is True as per the provisions of UCPDC? a) A document may be dated

prior to the issuance date of the credit, but must not be dated later than its date of presentation.

b) If the expiry date of a credit or the last day for presentation falls on a day when the bank is closed for reasons other than Force Majeure, the expiry date or the last day for presentation, as the case may be, will be extended to the first following banking day.

c) When the insurance document indicates that it has been issued in more than one original, all originals must be presented.

d) All of the above


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50. Which of the following is True with regard to UCPDC,600? a) Negotiating bank / issuing

bank shall each have a maximum of five banking days following the day of presentation to determine if documents are complying.

b) All Credits are treated as Irrevocable.

c) The No. of Articles have been pruned down to 39

d) All of the above 51. Which of the following is true as per Article 15 of UCPDC,600?

a) When an issuing bank determines that a presentation is complying, it must honour.

b) When a confirming bank determines that a presentation is complying, it must honour or negotiate and forward the documents to the issuing bank.

c) When a nominated bank determines that a presentation is complying and honours or negotiates, it must forward the documents to the confirming bank or issuing bank.

d) All of the these.

52 Which Article of UCPDC deals with Original Documents & Copies? a) 12 b) 13 c) 17 d) 19

53. Which Article deals with Teletransmitted and Pre-Advised Credits and Amendments? a) 10 b) 11 c) 21 d) 31

54. Article 25 of UCPDC deals with ____________. a) Courier Receipt, Post Receipt

or Certificate of Posting b) Commercial Invoice

c) Bill of Lading d) Original Documents

55. As per Article 17 of UCPDC, which of the following is true? a) At least one original of each

document stipulated in the credit must be presented.

b) A bank shall treat a document as original, if it is bearing an apparently original signature, mark, stamp, or label of the issuer of the document, unless the document itself indicates that it is not an original.

c) If a credit requires presentation of copies of documents, presentation of either originals or copies is permitted.

d) All of these

56. Which Article of UCPDC deals with Non Negotiable Sea Way Bill? a) 15 b) 17 c) 19 d) 21


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57. Article 26 of UCPDC deals with _____________. a) Air way Bill of Lading b) Clean Transport Document c) Courier Receipt, Post Receipt

or Certificate of Posting d) "On Deck", "Shipper's Load and

Count", Said by Shipper to Contain and Charges Additional to Freight.

58. Which of the following is True with regard to UCPDC,600? a) These Articles/provisions are

applicable to Foreign/Import/Export transactions only.

b) They are binding on all parties thereto unless expressly modified or excluded by the credit.

c) These are applicable to both Inland and Foreign Credits (L/Cs).

d) Both b & c

59. Which Article of UCPDC deals with Road, Rail or Inland Waterway Transport Documents? a) 20 b) 22 c) 23 d) 24

60. Which of the following is True with respect to UCPDC,600?

a) Issuing bank means the bank that issues a credit at the request of an applicant or on its own behalf.

b) Negotiation means the purchase by the nominated bank of drafts, documents under a complying presentation.

c) Credit means any irrevocable arrangement that constitutes a definite undertaking of the issuing bank to honour a complying presentation.

d) All of the above.

ANSWERS

1. a 2. a 3. c 4. b 5. c 6. d 7. a 8. a 9. a 10. b 11. a 12 a 13. b 14. b 15. a 16. d 17. a 18. c 19. a 20. c 21. d 22 a 23. d 24. a 25. b 26. a 27. c 28. d 29. d 30. c 31. a 32 d 33. c 34. d 35. d 36. c 37. d 38. a 39. c 40. b 41. a 42 c 43. b 44. a 45. d 46. d 47. c 48. a 49. d 50. d 51. d 52 c 53. b 54. a 55. d 56. d 57. d 58. d 59. d 60. d


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INTERNATIONAL BANKING: EXPORTS & IMPORTS

Compiled by Shri R PRABHAKARA RAO, Manager (Training)

1. With effect from 10th May,2012, the exporters are allowed to retain ______% of their foreign exchange earnings in EEFC accounts. a) 50 b) 75 c) 100 d) 125

2. Where an exporter receives advance payment (with or without interest), from a buyer outside India, the exporter shall be under an obligation to ensure that the shipment of goods is made within ____________ from the date of receipt of advance. a) Three months b) Six months c) one year d) 15 months

3. AD Category I banks may consider granting permission to Indian exporters for opening / hiring warehouses abroad, if the applicants export outstanding does not exceed ______% of exports made during the previous financial year and the applicant has a minimum export turnover of USD 100,000/- during the last financial year. a) 5 b) 10 c) 15 d) 20

4. Any export of Indian currency of value exceeding ________ except to the extent permitted under any general permission granted by RBI, will require prior permission of the Reserve Bank. a) Rs.5000 b) Rs.7500 c) Rs.10000 d) Rs.25000

5. The SDF/PP forms should be submitted by the exporter to the Banker (AD Category-1) within _____________ days. a) 7 b) 14 c) 21 d) 30

6. If the exporter fails to arrange for delivery of the proceeds within ______ or seek extension of time beyond ______, the matter should be reported to the Regional Office of RBI. a) 6 months, 12 months b) 6 months, 9 months c) 9 months, 12 months d) 12 months, 12 months

7. The aggregate amount of write off allowed by the AD Category I (o/a unrealized bills) banks during a financial year does not exceed ______ of the total export proceeds realised by the exporter through the AD Category I banks during the previous financial year. a) 10 % b) 15% c) 20% d) 25%

8. Status Holders exporters and manufacturer exporters exporting more than 50 per cent of their production and recognized as such by DGFT, are permitted to write off outstanding export dues to the extent of______ % of their average annual realization during the preceding three financial years or 10 per cent of the export proceeds due during the financial year, whichever is higher. a) 5 b) 10 c) 15 d) 20


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9. EBW statement in the context of exports is for _________________. a) Export Bills Withheld b) Export Bills Without Payment c) Exports Bills Withdrawn d) Export Bills Written Off

10. Who is the authority for considering requests by Indian exporter, for refund of export proceeds of goods exported from India and being re-imported into India on account of poor quality?. a) Once exported from India

cannot be imported back to India.

b) Authorised Dealer, who handled the export realisation

c) Any authorized Dealer d) RBI 11. FEMA rules have come into force with effect from ____________.

a) 1st June,2000 b) 1st June,2010 c) 1st May,2000 d) 1st April, 2000

12. The periodicity for reporting of software exports to STPI is ________. a) Monthly b) quarterly c) Half yearly d) yearly

13. EBW statement should be submitted by Authorised dealers to RBI at _____ intervals. a) Quarterly b) Half yearly c) Yearly. d) It has been dispensed with recently.

14. For setting up of an office abroad by Indian exporter, the maximum remittance towards initial expenses, up to ____________% of the average annual sales/income or turnover during the last two financial years or up to twenty-five per cent of the net worth, whichever is higher can be permitted by authorised dealers. a) 5 b) 10 c) 15 d) 25

15. The rate of interest payable on the advance payment received by Indian exporter, should not exceed ____________ basis points. a) LIBOR + 10 b) LIBOR + 50 c) LIBOR + 75 d) LIBOR + 100

16. Exporters having a minimum export turnover of ___________ during the last financial year can be granted permission by the authorised dealers, for opening / hiring warehouses abroad. a) USD 50,000/- b) USD 75,000/- c) USD 150,000/- d) USD 100,000/-

17. EBW Statement should be submitted to RBI by Authorised dealers as at the end of _____________ & _________________ every year. a) 30th June & 31st Dec b) 31st March, 30th Sept c) 31st July & 31 st Jan d) Every quarter

18. The Authorised dealer can directly dispatch the documents to the consignee directly, in some special cases, provided the value of such exports is not exceeding Rs.________. a) 10,000 b) 20,000 c) 25,000 d) 50,000

19. Applications by persons, firms and companies for making payments, exceeding _______or its equivalent, towards imports into India must be made in Form A-1. a) USD 5000 b) USD 7500 c) USD 10000 d) USD 50000


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20. AD (CategoryI) banks may permit settlement of import dues delayed due to disputes, financial difficulties, etc. and Interest thereon, for a period of less than_________ from the date of shipment. a) 1 year b) 2 years c) 3 years d) 5 years

21. Remittances against import of books may be allowed within ________, as to the time limit, provided interest payment is as prescribed from time to time for trade credit. a) 1 month b) 2 months c) 3 months d) without restriction

22. Which of the following is true with respect to pre-payment of usance import bills?, a) remittances may be made,

after reducing proportionate interest for the unexpired portion of usance at the rate at which interest has been claimed or LIBOR applicable.

b) prepayment of usance import bills is allowed only for 30 days.

c) prepayment of usance import bills is allowed freely.

d) No, prepayment of usance import bills is not allowed.

23. AD Category I banks may make remittances where import bills have been received directly by the importers from the overseas supplier provided the value of import bill doesnot exceed USD _________. a) 100000 b) 150000 c) 200000 d) 300000

24. AD Category - I banks may allow remittance for imports up to ______, where the importer of rough diamonds, rough precious and semi-precious stones has received the import bills / documents directly from the overseas supplier. a) USD 100,000 b) USD 200,000 c) USD 300,000 d) No amount is allowed.

25. Currency declaration Form (CDF) to customs authorities need not be submitted if at any one time, the value does not exceed ________ and/or the aggregate value of foreign currency notes (cash portion) alone brought in does not exceed USD 5,000 (US Dollars five thousand) or its equivalent. a) USD 50,000 b) USD10,000 c) USD 1,00,000 d) USD 5,000

26. Which of the following is true with regard to advance payments for import of goods to India? a) Banks can allow upto USD

200000 b) Banks can allow upto USD 200000,

subject to RBIs approval. c) Banks can allow upto USD

100000 d) No import of goods to India is

permitted now & hence no advance payment.

27. If the importer, other than a PSU a Department of the GOI /State Government is unable to obtain bank guarantee from overseas suppliers and the AD Category I bank is satisfied about the track record and bonafides of the importer, the requirement of the bank guarantee / standby Letter of Credit may not be insisted upon for advance remittances up to USD ________. a) 100000 b) 200000 c) 3000000 d) 5,000,000 (US Dollar five million).


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28. Authorised Dealer (CategoryI) may allow payment of interest on usance bills or overdue interest for a period of __________, from the date of shipment at the rate prescribed for trade credit from time to time. a) less than 6 months b) less than 1 year c) less than 2 years d) less than three years

29. Import bills and documents should be received from the banker of the supplier by the banker of the importer in India. AD Category I bank should not, therefore, make remittances where import bills have been received directly by the importers from the overseas supplier, except Where the value of import bill does not exceed USD ____________. a) 100000 b) 200000 c) 250000 d) 300000

30. What is Currency Declaration Form (CDF)? a) Which is submitted to

Customs when an individual carries foreign currency (import of currency)

b) Which is submitted to Customs when an individual sales foreign currency, after arrival in India

c) Which is submitted to Customs when an individual consumes foreign currency

d) Which is submitted to Customs when an individual exports foreign currency (export of currency)

31. SOFTEX Form relates to _____________. a) Soft foreign remittances b) Import and export of Softwares c) Soft form of Foreign Exchange

related returns d) Form to be submitted to RBI by

Authorised dealers at monthly intervals.

32. Authorised Dealers need not obtain any document, including Form A-1, except a simple letter from the applicant , as long as it is a current account transaction, if the amount does not exceed ___________. a) USD 100 b) USD 500 c) USD 750 d) USD 5000

33. Any person resident in India who had gone out of India on a temporary visit, may bring into India at the time of his return (other than from Nepal and Bhutan), currency notes of India up to an amount not exceeding __________. a) Rs.15,000/- per person b) Rs.25,000/- per person c) Rs.7,500/- per person d) No such cap, since he is bringing

back Indian currency. 34. Which of the following is true with respect to advance payments for import of

goods? a) Irrevocable Letter of Credit or

Bank Guarantee to be obtained if the amount of remittance exceeds USD 100000.

b) Irrevocable Letter of Credit or Bank Guarantee to be obtained if the amount of remittance exceeds USD 50000.

c) No Irrevocable Letter of Credit or Bank Guarantee need to be obtained now.

d) Irrevocable Letter of Credit or Bank Guarantee to be obtained if the amount of remittance exceeds USD 200000.


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35. Under sector specific measure, AD (Category-I) banks are permitted to allow remittance for imports up to _____________ where the importer of rough diamonds, rough precious and semi-precious stones has received the import bills / documents directly from the overseas supplier. a) USD 100,000 b) USD 200,000 c) USD 250,000 d) USD 300,000

36. In case of all imports, where value of foreign exchange remitted/ paid for import into India exceeds ___________, the Authorised Dealer through whom the relative remittance was made, is to ensure that the importer submits the Exchange Control copy of the Bill of Entry for home consumption. a) USD 50,000 b) USD 75,000 c) USD 100,000 d) USD 200,000

37. Airline companies which have been permitted by the Directorate General of Civil Aviation to operate, can make advance remittance without bank guarantee, up to_____________ for purchase of aircrafts/ Helicopters. a) USD 25 million. b) USD 50 million. c) USD 75 million. d) USD 100 million.

38. With respect of direct import of Gold, which of the following is true? a) Suppliers and Buyers Credit,

including the usance period of LCs opened should not exceed 90 days.

b) Suppliers and Buyers Credit, including the usance period of LCs should not exceed 180 days.

c) Suppliers and Buyers Credit, including the usance period of LCs opened should not exceed 360 days.

d) No Suppliers and Buyers Credit, is allowed for direct import of gold.

39. Documents evidencing import into India should be preserved by AD Category I banks for a period of ___________ from the date of its verification a) 6 months b) 9 months c) one year d) 3 years.

40. Where imports are made in non-physical form, i.e., software or data through internet / datacom channels and drawings and designs through e-mail/fax, a certificate from ______________ that the software / data / drawing/ design has been received by the importer, is to be obtained by the authorised dealer. a) Concerned receiving Bank. b) Chartered Accountant c) Exporter d) RBI

41. What is BEF statement? a) Statement submitted by

authorised dealer to RBI with regard to importers defaulting submission of import documents

b) Statement submitted by authorised dealer to RBI with regard to exporters who defaulted submission of documents.

c) Statement submitted by authorised dealer to RBI with regard to defaulting importers & exporters.

d) Statement submitted by RBI to GOI with regard to importers.

42. Which of the following is true with regard to Merchanting Trade? a) The entire merchant trade

transaction to be completed within a period of 3 months.

b) The entire merchant trade transaction is to be completed within a period of 45 days.


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c) The entire merchant trade transaction to be completed within a period of 6 months.

d) Merchanting Trade transactions are not being permitted now.

43. AD CategoryI bank may accept, in lieu of Exchange Control copy of Bill of Entry for home consumption, a certificate from the Chief Executive Officer (CEO) or auditor of the company that the goods for which remittance was made have actually been imported to India, provided the company is a listed one and its networth is not less than Rs._________crores. a) 50 b) 100 c) 150 d) 250

44. What is PP form? a) Used for exports made by

Post b) Used for exports made by personally

carryings & delivering. c) Used for Postal exports where

advance is received. d) Post Parcel which is for deemed

exports. 45. Bill of Entry is ______________.

a) Evidence of export b) Evidence of payment c) Evidence of import d) Evidence of remittance

46. EEFC stands for __________________. a) Earners Exchange & Foreign

Currency b) Exchange Earning Foreign Currency

c) Exchange & Earning Foreign Currency

d) Exchange Earners Foreign Currency 47. The periodicity of BEF statement is _______________.

a) Monthly b) Quarterly c) Half yearly d) Annually.

48. What is SDF in exports? a) Statutory declaration Form b) Statutory Delivery Form c) Statutory Demand Form d) State Declaration Form

49. Bill of Lading is _______________. a) Evidence of shipment b) Evidence of import c) Evidence of payment d) Evidence of remittance.

50. At what intervals the BEF statement is submitted to RBI? a) Every June & December b) Every May & November c) Every March & September d) It has recently been dispensed with.

ANSWERS

1. A 2. C 3. A 4. B 5. C 6. D 7. A 8. A 9. D 10. B 11. A 12 A 13. B 14. C 15. D 16. D 17. A 18. C 19. A 20. C 21. D 22 A 23. D 24. C 25. B 26. A 27. D 28. D 29. D 30. A 31. B 32 D 33. C 34. D 35. D 36. C 37. B 38. A 39. C 40. B 41. A 42 C 43. B 44. A 45. C 46. D 47. C 48. A 49. A 50. a


Page 36 of 141

DEPOSIT PRODUCTS

Compiled by Shri R.Prabhakara Rao, Manager (Training)

1 Which of the following are not true in respect of Multi Option Deposit Scheme (a) It can be linked either to

Current Account or Savings Account

(b) Min. Rs.10000 and in multiples of Rs.1000

(c) Subsequent deposits of Rs.5000 and in multiples of Rs.1000

(d) None of these

2 What is the min. and max. Period for which MOD can be accepted ? (a) 1 and 5 years (b) 6 Months and 120 Months (c) 7 days and 10 years (d) None of the above

3 The type of deposit that can be opened in MODS (a) TDR (b) STDR (c) Either a or b (d) None of the above

4 Corporate Liquid Term Deposit can be accepted for amounts of (a) Min Rs.50000 and in multiples

of Rs.5000 (b) Subsequent deposits Min.25000

and in multiples of Rs.5000 (c) Both a and b are true (d) None of the above

5 Savings Plus is the combination of (a) SB and MODS (b) SB and CLTD (c) Current account and MODS (d) None of these

6 Which of the following are not true in respect of Savings Plus ? (a) Min. balance Rs.5000 (b) Deposits matured will be rolled

over unless indicated otherwise (c) TDS is applicable for MODS

created (d) None of these

7 Withdrawals are permitted from Savings Plus Account through (a) Cheque (b) ATM (c) INB (d) All of the these

8 Which of the following are true in respect of Savings Plus account (a) No overdraft will be allowed

against SBI MOD Deposits (b) Deposits cannot be accepted as

margin for any NF business (c) Both are true (d) None of the above are true

9 Which of the following are true in case of Senior Citizen Deposit Scheme (a) Objective is to provide

differential interest rate to Senior Citizens

(b) Min. 1year and Max. 10 years

(c) Min. Rs.10000 and in multiples of Rs.1000

(d) All of these 10 Which of the following are not true in respect of Capgain Plus Scheme

(a) Parking of capital gains for a max period of 3 years

(b) Min Rs.1000 in SB a/c and Min Rs.5000 in TD Account

(c) Deposit can neither be accepted as margin nor as collateral

(d) None of these


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11 Amount withdrawn from deposits under Capgain Plus to be utilized within (a) 30 days (b) 60 days (c) 90 days (d) None of the above

12 Upper limit (ceiling) for issue of MCC for Per segment Savings Account holders (Others) (a) Rs.2 lacs (b) Rs.5 lacs (c) Rs.10 lacs (d) None of these

13 What are the variants available under Corporate Salary Package (a) Silver (b) Gold (c) Diamond & Platinum (d) All of the above

14 What is the eligibility criteria for opening salary accounts under Corporate Salary Package (a) Min. 25 employees (b) Min. payout of Rs.1.25 lacs (c) Both a & b (d) None of the above

15 The deposit scheme available in the bank that offers both higher interest and tax benefits u/s 80 C (a) Cap Gain Plus (b) MODS (c) SBI Tax Savings Scheme 2006 (d) None of the above

16 Savings Bank Account or Current Account is to be categorized as inoperative if there are no customer induced transactions for the last _______ (a) 12 Months (b) 18 Months (c) 24 Months (d) 36 Months

17 The maximum number of debit entries permitted in savings account per half year is ---------- except transactions routed through alternate channels. (a) 60 (b) 40 (c) 30 (d) 20

18 A person to become eligible to open No