JAIIB Exam Study Material: Principles and Practices of Banking Most Important Questions Dec 2018
Hello friends, today in this article by the learning sessions we will share important questions and memory called topics of PPB that is principles and practices of banking. Principles and practices of Banking is the first exam of jaiib. Even principles and practices of Banking is related to the daily routine of Banking still many of the candidates find it difficult that how to start preparing for the same.In this post by the learning sessions you can find many of the important topics that appear in the exam. Also you will find this important for scoring more marks in the exam of principles and practices of banking. So here is a list of 108 important memory called previous year topics and questions of principles and practices of Banking.
ALSO See: Indian Financial System PPB Module A Video
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Principles and practices of banking Ques
QUE
A customer Mr Sharma had credit balance 40,000 in his saving ac and also had an OD ac with overdue Debit balance of 20,000.Bank debits his saving account and adjusts OD ac. The bank is said to have exercised Right of: Set-off
ALSO See: JAIIB Video Study Material in Hindi
QUE
A Minor has extended Guarantee to a loan. It can be ratified by whom? It cannot be ratified by any one.
QUE
A savings account becomes inoperative when it not operated for: 2 years
QUE
A term deposit of a HUF has become due. At the time of renewal, the Karta of HUF informs that he has become Senior Citizen. What rate of interest will be given on term deposit? : Normal interest rate. No benefit of senior citizen to be given
QUE
Additional interest is paid to senior citizens on which time FD: All fixed deposits (may vary from bank to bank)
QUE
After Nomination in an account, what is the status of the nominee?: Trustee of legal heirs
QUE
An account of a customer can be closed in normal course on the request of the customer.
What are the other methods for closing account of a customer –
(a) By negotiation;
(b) As per provisions of law;
(c) After notice to customer in respect of undesirable accounts:
Ans is C
QUE
An Illiterate person is generally not allowed to open which account – saving, term deposit, recurring deposit, small account, Current Account: Current account.
QUE
As per RBI guidelines, Demand draft of Rs 50,000 and above should be issued against : by debit to account but not against cash
QUE
As per RBI guidelines, minimum amount of deposit to open BSBDA account is: NIL
QUE
As per Sukanya Samridhi Account (SSA) the tenure of deposit is for years from the date of opening of the account: 21 years
QUE
Bank is not required to produce original book of records but true copy can be submitted when court has demanded as per which act?
a) Civil procedure code
b) Registration act
c) B.R. Act
d) RBI act
e) Banker Books Evidence Act.
QUE
Banker Customer relationship for deposits is ____: Debtor – Creditor.
QUE
Banker customer relationship in Safe Custody: Bailee Bailor.
QUE
Banker customer relationship in standing instruction: Agent – Principal
QUE
Bankers prefer Saving Deposits than Term deposits. Why?: Because cost of deposits for SB is less.
QUE
Banks can decide interest rates of NRI, NRO or Term Deposits: Yes
QUE
Banks can raise what type of deposits?: Term and Demand Deposits
QUE
Banks should have the responsibility of currency management entrusted to a nodal official of the rank not less than that of a General Manager and will be accountable for the obligations cast upon currency chests by the Reserve Bank.
QUE
BC work as : Bank’s Agent
QUE
Business Correspondent can be identified by whom?: BDO,Post Master, Head of Village
Panchayat, other BC.
QUE
Business correspondents for banking for : serving weaker sections of society
QUE
Call money deposit is part of the sector : Organised sector
QUE
Complaints under Consumer forum should be dealt with within (Where no testing of commodities is required) : 90 days.
QUE
Customer OD A/c has overdrawn Rs 2000/-. Saving A/c has balance Rs 3000. The bank adjusts the OD A/c by which right: Set off.
QUE
DD of Rs.50000/- in cash : not allowed
QUE
Death claim settlement in how many days?: 15 days
QUE
Deposits held in Joint accounts; b) Corporate Deposits; c)
Inter-Bank deposit; d) Deposits of HUFs: Ans is Inter-Bank deposits.
QUE
Deposits which are not claimed for__years are required to be transferred by banks to
RBI: 10 years
QUE
DICGC cover is available in which of the following cases a) Credit balance in Cash Credit Account
b) Overdue Deposit c) Deposit of Government Department?: A & B
QUE
Differential rate of interest can be paid on fixed deposit if single deposit is for: Rs.1.00 crore and above
QUE
Direct Tax Code will replace which of the following – Income Tax Act, Corporate Tax Act: Income Tax Act.
QUE
Encashment of FOR with interest - payment can be made in cash if it is less than Rs 20000
QUE
Financial Inclusion means: providing banking services at affordable cost to the poor/distressed.
QUE
FULL FORM OF CASA? : CURRENT ACCOUNT & SAVING ACCOUNT
QUE
Garnishee order is not applicable to:
a) Savings
b) Current
c) FD
d) CC/OD with debit balance:
CC/OD with debit balance.
QUE
Govt. has decided to demonetize all the coins of paise 25 and below w.e.f. 30-6-2011.
QUE
How much amount can be deposited in a small account in a financial year?: Rs one lac
QUE
How much amount can be withdrawn from a small account in a month?: Rs 10,000
QUE
If in Garnishee Order no amount is mentioned, what should the bank do? Full amount to be attached.
QUE
If payment of Rs 20000/- is made in cash in case of FDR what is the penalty: equal to the amount paid
QUE
Illiterate account holder, how many witness for nomination: two
QUE
In Basic Savings Bank Deposit Account in all their accounts taken together and the total credit in all the accounts taken together is not expected to exceed _____ in a year has been simplified to enable those belonging to low income groups without documents of identity and proof of residence to open banks accounts: 1,00,000/-.
QUE
In case Fixed Deposits account the rate of interest fixed by whom: Board of Directors of
respective bank.
QUE
In case of a/c transfer, with in how many days the address proof has to be submitted in the transferee branch? Six Months
QUE
In case of an illiterate customer, process of nomination requires witnesses by how many persons?: Thumb impression requires 2 witnesses.
QUE
In case of Deposit Insurance whether it mandatory or not: It is Mandatory for all banks.
QUE
In case of Deposit Insurance, Insurance premium is paid to DICGC by bank and depositor in which ratio?: Entirely by bank.
QUE
In case of insurance of deposits by DICGC, premium is paid by: Bank. 100% of the premium is paid by the bank and not by depositor.
QUE
In case of insurance of deposits by DICGC, what is the premium sharing ratio between bank and depositor?: 100% of insurance premium is paid by the bank.
QUE
In case of Minor what is wrong? Minor can make himself liable for his actions.
QUE
IN CASE OF TRANSFER OF ACCOUNT, WITHIN HOW MANY DAYS, THE ACCOUNT HOLDER SHOULD ADVISE NEW ADDRESS?: TWO WEEKS
QUE
In how many years of no transaction does a saving and current account become inoperative? : two years
QUE
In Limited liability Partnership what is the liability of partner?: Amount agreed to be
contributed by partner at the time of joining partnership.
QUE
In saving accounts, interest is calculated on the basis of: daily product basis.
QUE
In Senior Citizen Saving Scheme account, who can be joint account holder?:Spouse
QUE
In small accounts as per RBI- No min. balance, nil/minimal charges etc
QUE
In small accounts monthly withdrawals to be upto- Rs.10000/-
QUE
Insurance of deposit is done by DICGC up to: Rs 1 lac per depositor per bank.
QUE
Interest rate on Saving Deposit is decided by : Banks individually
QUE
Interest rate on Savings accounts: Not regulated by RBI
QUE
Max amt for tax saver FD: Rs 150000
QUE
Maximum amount of deposit in Tax Saving Scheme of the bank can be: Rs 1,50,000
QUE
Maximum deposit for allocating a locker: 3 year advance rent plus locker breaking charges
QUE
Maximum period of NRE deposit: Bank Discretion.
QUE
Minimum and Maximum amount that can be deposited in PPF account is _____: Minimum Rs. 500/- & Maximum Rs. 1.50 lacs.
QUE
Minimum Lock in period for Tax saver FDR: 5 Years
QUE
Minimum Maturity Period for Certificate of Deposit is : 7 days
QUE
Missing person treated as having expired if missing for: 7 years
QUE
No Frills Accounts are opened for: Financial Inclusion
QUE
No of digits in Aadhar : 12
QUE
Non Resident (External) fixed deposit is normally accepted for a period of
(a) 1 year to 3 year
(b) 1year to 5 year
(c) 1 year to 4 year
(d) 1 year to 7 year
(e) 6 months to 3 year:
1 year to 3 year (As per RBI it is minimum 1 year and maximum bank discretion)
QUE
OD in PMJDY account upto: Rs. 5,000/-.
QUE
On a cheque presented for payment, amount is written in words but all other items are written in Regional Language. What should the bank do?: Pay the cheque
QUE
Pensioner account can be opened jointly with? Spouse as Either of Survivor or Former or Survivor.
QUE
Rate of Interest in Sukanya Samridhi Account for 2015-16: 9.20% & 8.6% FOR 2016-17
QUE
Relation between bank and judgment debtor: debtor & creditor.
QUE
Safe custody of Articles comes under which Act: Indian Contract Act.
QUE
Star series note can be issued in denomination of Rs 100 also. (earlier only Rs 10, 20 & 50)
QUE
Super senior citizen after: 80 years of age
QUE
The balance in the account is Rs 15000. A cheque of Rs 30000 was sent for collection. Before it is realized a cheque for Rs 20000 has been presented for payment. What should the bank do –
(a) Return with reason effects not yet cleared. Present again;
(b) Pay the cheque;
(c) Return with reason exceeds arrangement;
(d) Return with reason Refer to Drawer;
(e) Return with reason Insufficient Funds: Insufficient Funds
QUE
The minimum & maximum period of certificate of deposit is : 7 days, 12 months
QUE
There is a credit balance in the saving account and there is a overdraft in the current account amounting to Rs 555. Both accounts are in the same name. Bank wants to adjust credit balance of saving bank account towards payment of overdraft. As per which right, bank can do this?: Right of Set Off.
QUE
Under Sukanya Samridhi Account (SSA) the maximum period upto which the deposits can be made is for ___ years from the date of opening of the account: 14 years
QUE
Under Sukanya Samridhi Account (SSA) the minimum amount of deposit is Rs 1,000 and Under Sukanya Samridhi Account (SSA), the bank account will be opened for a girl child upto the age of: 10 years
QUE
Under Sukanya Samridhi Account (SSA), the current rate of interest on deposits is which is the highest amongst all other Govt. Saving Schemes: 9.20% & 8.6% FOR 2016-17
QUE
What are the Service charges for using ATMs of other banks for balance enquiries: Rs.20 for Financial & Rs. 10 for Non- Financial upto 5 transactions ( 3 at Metros)
QUE
What documents are required for opening a small account?: Self attested photo and address
QUE
What is the bankers-customer relationship in case of deposits? Debtor – Creditor
QUE
What is the distance criteria for office of Business Correspondent?: The distance between the place of business of a retail outlet/sub-agent of BC and the base branch should ordinarily not exceed 30 kms in rural, semi-urban and urban areas and 5 kms in metropolitan centers.
QUE
What is the maximum amount of loan that can be granted against FCNR deposit? No limit.
QUE
What is the periodicity of review of risk classification of customers?: Every six months
QUE
What is the rate of interest payable on an overdue FD for overdue period if customer demands payment and does not renew the same?: Saving Bank Rate
QUE
What is the special feature of Basic banking Account? Account can be opened with nil or very small amount and there are no requirement of minimum balance.
QUE
What type of account can be opened in the name of NRI jointly with residents? NRO
QUE
What type of activity can be performed by Business Correspondent -
(a) processing and
submission of applications to banks;
b) disbursal of small value credit,
(c) recovery of principal / collection of interest
(iv) collection of small value deposits: All of these
QUE
When a person wants to open an account with a bank but does not have proof of identification and address, what type of account can be opened?: Small account
QUE
When Letter of Administration issued: When the person dies without leaving the Will- Intestate.
QUE
Whether “WILL” has to be registered? Not required.
QUE
Which form is used for cancellation of nomination in deposit accounts?: DA -2
QUE
Which is not a proof of Identity?: Ration card.
QUE
Which is the most important document for opening a Trust Account?: Trust Deed
QUE
Which of the following forms will be used for allowing exemption to a depositor aged 61 years : Form 15 H
QUE
Which of these rates are periodically reviewed by RBI?: Repo rate, Bank rate, but not Savings Bank Rate.
QUE
While opening account, a bank, in addition to observing various provisions of Indian Contract Act should also – exercise utmost care and attention; look at profitability from
QUE
While opening the account with a bank, prospective customer is required to submit – PAN No or Form 60 or 61
QUE
Who are eligible for preferential rate of interest under NRE deposits:
a) Staff
b) Senior citizen
c) Staff cum Senior Citizen
d) none of these?: None of these
QUE
Who can do nomination in the account of a Minor?: Can be done by guardian not by
minor
QUE
Who of the following can exercise nomination – HUF, limited company, trust, Partnership firm, sole proprietorship firm?: Sole Proprietorship firm.
