INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
DRA TRAINING
TEST – 4
1.Which is the Central Bank of our Country
a) Central Bank of India b) State Bank of India
c) Reserve Bank of India d) National Bank for Agricultural and Rural Development
e) ICICI Bank
2.Public Sector Bank means
a) Can accept Deposits only from the public b) 100% share holding by the Govt.
c) Majority share holding by the Govt. d) All banks accepting deposits and giving
loans to the public e) All the above
3. A T M means
a) Any Time Money b) Automatic teller Machine
c) Automated Teller Machine d) Always teller Money
e) Authorized Teller Machine
4. Which one is not a negotiable instrument
a) Bill of Exchange b) Promissory note c) Fixed Deposit Receipt d) Cheque
5. ATM cards are issued in
a) Savings Bank Accounts b) Current Accounts c) Recurring Deposit accounts
d) a and b e) All the above
6. Which of the following is not a part of the Public Sector Banking in India
a) SBI b) Nationalized Banks c) Regional Rural Banks d) Foreign Banks
7. Number of Public sector Banks now
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a) 20 b) 21 c) 28 d) 29 e) 13 f) 27
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INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
8. 1st lot of commercial banks were nationalized on
a) 01 Jan 1969 b) 16 July 1980 c) 31 march 1969 d) 31 March 1981 e) 16 July 1969
9. Scheduled Commercial banks include
a) Private Sector banks b) Public Sector banksc) Regional Rural banks
d) Foreign bankse) Banks which are included in the second schedule of RBI act 1934
f) All the above
10. How many banks were nationalised in 1980
a) 8 b) 6 c) 9 d) 14 e) None of the above
11. When a Bank is accepting a fixed sum of money for a definite term and pay on
maturity with interest thedeposit is known as:
a) Demand deposit b) Term deposit c) Call deposit d) Savings Deposit
12. State Bank of India came in to existence in
a) 1921 b) 1955 c) 1967 d) 1980 e) 1956
13. Which one is not a function of RBI
a) Issuance of Currency note and coins b) Banker to govt c) Custodian of CRR and
SLR funds
d) Managing Foreign Exchange e) Controlling credit f) Regulating Stock Markets
14. Bank is a financial institution which acts as a ___________between savers and
users of funds
a) Substitute b) Insider c) Intermediary d) Agent e) Principals
15. Which one is the basic (Primary) function of the bank
a) Issuance of Credit Cards b) Selling Insurance products
c) Selling mutual fund products d) Providing locker facility
e) Accepting deposits of money for the purpose of lending and investment
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16. In July 1969 how many banks were nationalized?
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a) Five b) Seven c) Fourteen d) Twenty e) Twenty one
INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
17. What is the advantage of keeping Saving Bank Account
a) Safety b) Liquidity c) Interest earnings d) ATM Card, Internet Banking
e) All the above
18. The capital of RRBs is provided by Central Govt____%,StateGovt____%,Sponsored
Bank_______%
a) 25%.25%,50% b) 50%,25%,25% c) 33%,33%,34%
d) 25%,35%,60% e) 50%,15%,35%
19. PMLA means
a) Prevention of Money Laundering Act b) Prevention of Antimoney Laundering act
c) Preventive Measure for Laundering Act d) Non of the above
20. KYC means
a) Know your Client b) Know your colleguesc) Know your Customer
d) Know your Credentials e) Know your Counterparts
21. The main features of Current Account are
a) No restrictions on number and amount of Deposits and Withdrawals
b) No interest is paid c) Cheque book facility d) Third party credits permitted
e) All the above
22. Ten Rupee note contains the signature of
a) Finance Minister, Govt of India b) Prime Minister
c) Reserve Bank of India Governor
d) State Bank of India Chairman e) Finance Secretary
23. Minimum and maximum period for which bank accepts term deposit is
a) 1 month and 20 years b) 2 months and 20 years c) 7 days and 10 years
d) 14 days and 10 years e) Not fixed by anybody
24. Short term deposits means,which are held for a period less than
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a) 1 year and less b) 2 years c) 3 years and less
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d) 3 months and less e) 6 months and less
INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
25. Cheque is
a) Instrument in writing b) Unconditional order c) To pay a specified amount
d) Amount should be given to Payee e) A negotiable Instrument
f) All the above
26. When a cheque is crossed,which one of following is not correct
a) Cash will not be paid over the counter b) Cash will be paid over the counter
c) Proceeds will be credited in the account only d) A and C e) None of the above
27. The functions of a commercial bank include
a) Accepting deposits from the public b) Lending money for business, agriculture,
industry etc
c) Transacting Govt. business
d) Remittance of funds
e) Offering Safe custody, safe deposit locker facility etc. f) All the above
28. Cheque will always be drawn on a
a) Person b) Trust c) Payee d) Drawer e) Bank
29. Which one is not a source of laundered Money
a) Drug trafficking b) Smugling and Gambling
c) Organised crime d) Illegal arms trade e) None of the above
30. Different phases of money laundering are
a) Placement b) Layering c) Integration d) All the above
e) None of the above
31. Who can cross a cheque
a) Drawer b) Payee c) Holder d) All the above
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INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
32. Which data is not available on the face of credit card
a) Account holders name b) Credit card number c) Expiry month and yeard) Issuing
Bank e) Account holders date of birth
33. Banks are required to classify their assets as per RBI guidelines ,namely
a) Standard ,Non standard,Doubtful,Loss
b) Standard,Substandard,Doubtful,Loss
c) Standard, Sub standard,Doubtful,Lost
d) Standard,Standardless,Doubtful,Loss
34. Which of the following is not correct
a) Standard asset is NPA b) Sub standard asset is NPA c) Doubtful asset is NPA
d) Loss asset is NPA e) All the above
35. What is NPA
a) Non Performing Asset b) Does not generate income for the Bank
c) Bank has to keep provisions for the account
d) If the payment of principal,instalments or interest is defaulted for a stipulated
period
e) All the above
36. When will a Standard account turn Sub-Standard, Which statement is wrong
a) If interest/installment remains unpaid for more than 90 days
b) If the balance is in debit for more than the sanctioned limit for more than 90 days
c) If the amount of credits does not cover interest debited for more than 90 days
d) If the bills purchased/discounted remains overdue for more than 90 days
e) If installments/interest remains overdue for 2 crop seasons in the case of short
duration crops
f) If installments/interest remains overdue for one crop season in the case of long
duration crops
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g) None of the above
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INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
37. A sub-standard asset is one which has remained NPA for a period up to
_____months
a) 3 b) 6 c) 9 d) 12 e) None of the above
38. A doubtful asset is one which has remained substandard for a period of ----- -
months
a) 3 b) 6 c) 9 d) 12 e) None of the above
39. What is a loss asset?
a) If interest/instalment remains unpaid for more than 90 days
b) If the balance is in debit or more than the sanctioned limit for more than 90 days
c) If the amount of credits does not cover interest debited for more than 90 days
d) If the loss has been identified by the bank, internal or external auditors
e) None of the above
40. Which card does not come under plastic money
a) ATM card b) Debit card c) Credit card d) Charge card
e) None of the above
41. What is a charge card?
a) When card issuance charges are more for a credit card
b) Transactions are accumulated over period of time and the total amount is charged
to his account
c) Transactions are not accmulated over period of time and the total amount is charged
to his account immediately
d) None of the above
e) All the above
42. Which type of card is relatively less risky for the bank
a) Debit card b) Credit card c) Charge card d) Visa card
e) Rupay card
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43. Directives and guidelines on debt recovery agents are issued by
INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
a) Govt of India b) Concerned state Govt
c) Debt Recovery Tribunal d) Reserve Bank of India e) None of the above
44. Debt recovery agreement between the Bank and DRA is a Contract of Agency
(True / False)
45. In terms of section 186 of Indian contract act consideration is not necessary in an
agency contract
(True / False)
46. As per Indian contract act
a) The Principal has to be a minor b) The agent can be a minor
c) Both principal and agent have to be major d) Both principal and agent have to
be of sound mind
e) C and D f) All the above
47. RBI has issued guidelines on DRA's in the year
a) 2002 b) 2004 c) 2011 d) 2007
48. EMI stands for
a) Equal monthly installment b) Every months installment
c) Equal Monthly Interest d) Equated monthly Installment
e) None of the above
49. BCSBI stands for
a) Book Closure of State Bank of India b) Bank credit from State Bank of
India
c) Banking Credit and Standards Board of India d) Banking Codes and Standards Board
of India
50. BCSBI seeks to promote:
a) Good and fair banking practices b) Transparency in dealing with customersc) Fair and
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cordial relationship d) All the above
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INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
51. S A R F A E S I stands for
a) Security And Reconstruction of Financial Assets and Enforcement of Security Interest
b) Securitization And Reorganization of Financial Assets and Enforcement of Security
Interest
c) Securitization And Reconstruction of Fixed Assets and Enforcement of Security
Interest
d) Securitization And Reconstruction of Financial Assets and Enforcement of Security
Interest
52. As per SARFAESI act which one is not true
a) Bank can take procession of the security b) Bank can Sell the security
c) Applicable to agricultural land d) Applicable if the due is less than
20% of Principal and interest
e) C and D
53. While making telephone calls to the borrower, the DRA can use :
a) His mobile number b) His landline number
c) Public telephone d) From the number advised to the borrower
54. SARFAESI will not be applicable when the security interest is less than or equal to
a) 2 lacs b) 5 lacs c) 10 lacs d) 1 lacs e) All the above
55. Rights and duties of Recovery agents are mainly governed by:a) Indian penal Code
b) DRT c) Banking Ombudsman d) BCSBI e) Indian Contract Act and RBI/IBA
guidelines
56. Which of the following is not a right of the Agent
a) Right to retain b) Right to compensation
c) Right to indemnity d) Right to indemnity in the case of unlawful activitiese)
All the above
57. Which of the following is not a duty of DRA
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(a) Follow instructions (b) Follow trade customs
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(c) To exercise care and skill (d) Duty to communicate
INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
(e) Proper accounting (f) To remit money
(g) Keep confidentiality (h) Duty to delegate
58. DRA has a duty to exercise reasonable care and skill in recovery ,in terms of:
a) The Contract Act b) IBA Model policy on collection of dues
c) RBI guidelines d) All the above
59. In a Deposit account the Banker is a :
(a) Debtor (b) Creditor (c) Agent (d) Truste
60. The generic duties of agents as per Contract Act include
a) Duty to follow lawful instructions of the principal
b) Duty to follow lawful and unlawful instructions of the principal
c) Duty to follow customs and practices in the trade where the instructions of the
principal are silent
d) Both a and C
61. FDCPA(Fair Debt Collection Practices Act is applicable to:
(a) India and UK (b) India (c) UK (d) USA
62. OFT(Office of fair Trading)is applicable to:
(a) India and USA (b) India (c) USA (d) UK
63. While collecting a cheque for the customer the banker becomes
(a) Lessor (b) Debtor (c) creditor (d) Agent
(e) Trustee
64. While accepting Safe custody of articles Bank is
(a) Bailee (b) Lessor (c) Debtor (d) Agent (e) Trustee
65. As per IBA's Model policy, customer calls should be between
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(a) 0700 and 1700 hours (b) 0800 and 1700 hours (c) 0800 and 1900 hours
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(d) 0700 and 1800 hours (e) 0700 and 1900 hours
INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
66. Borrower’s request to avoid calls at a particular time or place would be:
(a) Rejected politely (b) Rejected outright
(c) Ignored (d) Honored as far as possible (e) None of the above
68.Which one is not a demand deposit
(a) Current Account (b) Savings Bank Account
(c) Recurring Deposit (d) Fixed Deposit (e) C and D
69. What are Hybrid Deposits?
(a) Current Accounts (b) Saving bank accounts
(c) Recurring deposit (d) Fixed Deposits (e) All the above
(f) none of the above
70. Over draft is generally allowed by banks in
(a) Saving bank account (b) Term deposit accounts
(c) Recurring deposit accounts (d) Current account (e) All the above
71. Communication is a :
(a) One sided act (b) Two way traffic (c) Nothing to do with
exchange
(d) Group activity (e) All the above
72. The term Customer is defied in
(a) Negotiable instruments Act (b) RBI act
(c) Banking regulation act
(d) KYC guidelines issued by RBI under Sec 35A of BR Act 1949
73. When is the Banker customer relationship is terminated
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(a) On the death of customer (b) Customer becoming lunatic
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(c) customer becoming insolvent (d) On closure of account (e) All the above
INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
74. When a customer takes a locker ,relationship between banker and customer is of(a)
Principal and agent (b) Pledgor and pledge (c) Trustee and beneficiary
(d) Bailor and bailee (e) Lessor and lessee
75. Which is not an advantage of credit card
(a) Convenient carry (b) Can draw cash (c) Free credit period (d) free add on
cards(e) Proof of purchase in case of disputes (f) None of the above
76. Credit risk to the bank is more in:
(a) Credit card (b) Debit card (c) Both a and b (d) Non of the above
(e) All the above
77.In the case of housing loan security is charged by way of
(a) Mortgage (b) Pledge (c) Lien (d) Hypothecation
(e) Non of the above
78.In the case of Vehicle loan security is charged by way of
(a) Mortgage (b) Pledge (c) Lien (d) Hypothecation
(e) Non of the above
79. Empathy means:
(a) To show concern for the person (b) Getting in to shoes of other persons
(c) To swaps roles and behave (d) Try to understand the other person
(e) All the above
80. Interpersonal skill requires
(a) Communication skills (b) empathy (c) Listening skills
(d) Establishing rapport with other persons (e) All the above
81. For recovery process following skills is required:
(a) Communication skills (b) Listening skills
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(c) Interpersonal skills (d) Persuasive skills
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(e) All the above
INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
82. Persuasive skill is built is on:
(a) Establishing rapport and trust (b) Using harsh language
(c) Not listening (d) Not showing empathy(e) All the above
83. Elements of persuasion in debt recovery:
(a) Explain banks point of view (b) Explain DRAs task/duty
(c) Show concern for the debtor (d) Explain consequences of non payment
(e) All the above
84.Loans and advances of banks appear in the balance sheet as :
(a) Assets (b) Liabilities (c) Income (d) expenses (e) c and d
(f) a and b
85. Anccount will become NPA when it remains overdue or out of order for a period
of(a) 90 days (b) Less than 90 days (c)More than 90 days
(d) More than180 days
86. An account will become doubtful whenit has remained in the substandard category
for a period of at least
(a)6 months (b)3 months (c)18 months (d)12 months
87. Standard asset is one which is:
(a)Not an NPA (b) A doubtful asset (c) A loss asset (d) none of the above
88. Retail loans include
(a)Home loans,Autoloans,Corporate loans (b)Home loans,Autoloans,Bridge loans
(c)Auto loans,Corporateloans,Consumer loans (d)Home loans,Autoloans,Personal loans
89. Which one constitutes the largest percentage of retail loans in india?
(a) Auto loans (b) Home loans (c)Personal loans (d) Consumer loans
90. The term debtor means:
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INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
(a)A person who owes some debt (b)A person to whom some debt is
owed(c)Lender (d)None of the above
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INSTITUTE OF BANKING STUDIES (IBS)
IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
