Practice Banking Operations Questions and Answers

• What is the primary role of the Central KYC Records Registry (CKYCR)?  
• When REs use Aadhaar for customer verification in offline mode, what is mandatory according to RBI guidelines?  
• In cases where REs are unable to meet Customer Due Diligence (CDD) requirements due to a customer’s lack of cooperation, what is the recommended action? ...
• Which of the following would not affect bank reconciliation?
• The  ‘CAMELS’  approach is a risk assessment method. What does C stand for in CAMELS? 
• A customer deposits ₹5 lakh in a fixed deposit for 3 years. The bank offers an interest of 6% per annum, compounded quarterly. Which formula is used to c...
• A customer reports unauthorized transactions on their digital banking app. Under RBI’s directions, if the customer informs the bank within 3 days, what i...
• The Pradhan Mantri Mudra Yojana completed 10 years of its launch. The government introduced a new category under this scheme to cover loans between ₹10 l...
• An Indian exporter raises a Letter of Credit (LC) worth USD 1,00,000. The exchange rate on the LC issuance date is ₹83.50/USD. The bank charges 0.25% as ...
• A borrower is offered two loan options: • Loan A: ₹50 lakh @ 9.5% with 1.5% upfront fee • Loan B: ₹50 lakh @ 10% with no fee Which is cheaper assum...
• A borrower has defaulted on a term loan for over 90 days. The bank categorizes the account as an NPA. Later, the borrower partially repays the overdue amou...
• InsureCo writes a portfolio of 12-month fire insurance policies on 1 Oct (policy year Oct–Sep). Premiums are received upfront. Historical claims are seas...
• Acquisition costs (commissions, underwriting) are high and incurred upfront on 1 Oct. Policies are expected to persist on average 9 months (lapse experienc...
• At 31 Mar, management projects a worst-case stress showing net technical provisions plus URR exceed current solvency margin by 10%. Regulator requires prom...
• A bank has Bills Discounted worth ₹4,00,000. Unexpired discount at year-end is ₹40,000. What is the adjustment in final accounts?
• A bank has statutory reserve requirement of 25% of Net Profit before appropriations. Net Profit before appropriations = ₹40 crore. Transfer to reserve = ...
• A bank’s Profit before appropriations = ₹20 crore. Statutory reserve requirement is 25%. The bank also transfers ₹2 crore to Investment Fluctuation R...
• 'CBS' in the context of banking stands for:
• The process of converting a physical cheque into an electronic image for faster processing is called:
• The minimum capital requirement for setting up a new universal bank in the private sector as per RBI is:
• The 'Basel III' framework primarily focuses on:
• The process by which a bank converts the cheques and other instruments deposited by customers into cash is known as:
• The CAMELS rating system, used for bank supervision, does NOT include the factor:
• The 'Nostro Account' of a bank refers to:
• The process by which a central bank influences the money supply and interest rates by buying and selling government securities is known as:
• The Basel III framework introduced a new capital buffer called the Countercyclical Capital Buffer (CCyB). What is its primary purpose?
• The 'MCLR' (Marginal Cost of Funds based Lending Rate) system replaced the earlier 'Base Rate' system. What is a key component in calculating MCLR?
• The maximum insurance coverage provided by DICGC per depositor per bank is:
• Maximum period for which a commercial bank can accept term deposits is:
• Nostro account is maintained in:
• Basel III requires minimum Common Equity Tier 1 ratio of:
• Which of the following is the  platform  for investors to trace inactive as well as unclaimed mutual fund investments ?  
• G-Secs in India are issued through auctions conducted by RBI. These auctions are conducted on the Core Banking Solution (CBS) platform of RBI called