Banking Management- NCP -2 Name of the Student: Enrolment No: SN 1 Question Under priority sector advances, domestic banks

are required to provide ______ percent of Adjusted Net Bank Credit to agriculture? 2 As per Basel-2 norms, commercial banks are required to maintain 8 % of CRAR. But, what is the minimum CRAR that is required to be maintained by all 9 percent scheduled commercial banks in India? 3 If a bank gives a loan to a borrower at a fixed rate of interest for one or two years, after which the interest rate would become floating or linked to bank lending rate, Dual Interest Rate/Teasing Rates such interest structure is called____ 4 If any bank continues to fail in maintaining 70 per cent of the total CRR requirement on the next succeeding day/s, penal interest will be recovered from 5 per cent above bank rate that bank at the rate ________ % per annum 5 A small (service) enterprise is an enterprise where the investment in equipment is more than Rs. 10 lakh but does not exceed Rs. _______ 6 The Return Guarantee Corporation approached seven banks and availed a loan of Rs. 300 crores from six different banks on common documentation. Such loan is Consortium Loan called_______ 7 As per second method of Tandon Committee to arrive at MPBF, borrower or promoter is required to bring 25 per cent of __________as margin 8 If a foreign bank fails to reach its priority sector target in a particular year, the shortfall amount has to be deposited with_______ 9 _______is a type of corporate loan arranged by a bank in consultation with other interested banks in the project without informing the borrower of whether the loan is solely financed by the bank or funded with other banks. 10 Total working capital (TWC) requirement = 6000x0.25% =1500; Finance ratio = 4:1; 20% of PAT As per the Nayak Committee, bank can finance 20 % of projected annual turnover (or 80% of TWC) = 1200; of the borrower. Projected annual turnover (PAT) is Rs. 6000. Existing Borrower would bring either 5% of PAT or ENWC whichever is networking capital (ENWC) is Rs. 250. What is the amount the bank can finance? higher as margin; 5% of PAT=300, which is higher than ENWC. Thus, MPBF = 1500-300=1200; The answer is 1200. 11 As per RBIs draft guidelines for licensing of new banks, the banks are re quired to 25 percent open at least _____ % of its branches in unbanked rural areas. 12 What was the previous Name of Axis Bank? UTI Bank Undisclosed/Closed Syndication Current Assets Small Industrial Development Fund (SIDF) - SIDBI Rs. 2 crore 18 percent Answer Section:

13 The Bold Bank issued a Bank Guarantee in favour of The Chief Engineer, Public No Works Department. The Chief Engineer was transferred later. The said guarantee

was invoked by Executive Engineer of the same department. Whether the bank should honour the BG? (Yes and No). 14 As per the Indian Contract act, the claim period for Bank Guarantees issued to other than Govt. Departments is_______ 15 If a Letter of Credit (LC) contains a clause to provide finance to the exporter to purchase the raw material, process it, manufacture the finished goods, pack it and store it , such a L.C is called_______ 16 In the case of borrowers belonging to a group, the credit exposure ceiling limits (including additional exposure) would be not more than ________ per cent of 50 percent capital (Tier 1 plus Tier 2 capital). 17 The acronym 'SWIFT' stands for_________ Society for Worldwide Interbank Financial Telecommunications No. But, only outward remittances to Nepal under the Indo-Nepal Remittance Facility Scheme Yes Safety, Liquidity, Profitability, Purpose, Diversification of Risks, and Security General Crossing Red clause L.C 3 years

18

Can remittances be sent abroad using NEFT?

19 Can ECS be used to transfer funds to Non Resident External (NRE) and Non Resident Ordinary (NRO) accounts? 20 What are the cardinal principles of lending?

21 Two parallel transverse lines are compulsory for_______type of crossing of cheque 22 Any shortfall in priority sector lending target has to be deposited with NABARD/SIDBI. If the shortfall lies between 5 and 9 percentage points, the Bank Rate minus 4 percentage points deposit amount will earn at the rate of ______ per annum 23 What is the time taken for effecting funds transfer from one account to another under RTGS? 24 Under ________ facility banks may borrow overnight up to one per cent of their respective NDTL outstanding at the end of the second proceeding fortnight. 25 What are the components of base rate________ 26 Collecting a cheque for a party other than the true owner is called _______ 27 What is the rate of interest under Marginal Standing Facility as on today? 28 ______ is a document given by a transporter of goods and issued to the exporter of goods that evidences the receipt of goods for shipment to a specified person or Bill of Lading importer. 29 NEFT operates in hourly batches. There are _____settlements on week days and ________ on Saturdays 30 Who is the Governor of Reserve Bank of India_____ 11 and 5 Dr. Duvvuri Subba Rao Marginal Standing Facility a. Cost of Deposits b. Negative Carry on CRR & SLR c. Unallocable overhead cost d. Average return on net worth Conversion 9 percent Normally in real time. Bank has to credit the beneficiary's account within 2 hours of receiving the funds transfer message