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in General Awareness
What does KYC stand for in banking terminology?
A
Know Your Client
B
Keep Your Capital
C
Key Yearly Calculation
D
Knowledge Yield Certificate
Correct Answer:
A. Know Your Client
EXPLANATION
KYC (Know Your Client) is a mandatory compliance process to verify customer identity and assess their financial profile.
Which of the following is a negotiable instrument used in banking?
A
Bearer Bond
B
Promissory Note
C
Stock Certificate
D
Insurance Policy
Correct Answer:
B. Promissory Note
EXPLANATION
A Promissory Note is a negotiable instrument that represents a written promise to pay a specified sum to a creditor.
Which of the following correctly defines 'Bancassurance'?
A
Insurance provided by banks to their employees only
B
Distribution of insurance products through bank branches and channels
C
Life insurance exclusively for senior bank officials
D
Insurance against bank fraud and cyber attacks
Correct Answer:
B. Distribution of insurance products through bank branches and channels
EXPLANATION
Bancassurance is the delivery and distribution of insurance products through banking channels to customers.
A customer's bank account becomes inoperative if no transaction occurs for how long?
A
6 months
B
12 months
C
24 months
D
36 months
Correct Answer:
B. 12 months
EXPLANATION
As per RBI guidelines, a savings or current account becomes 'inoperative' if there is no transaction for 12 consecutive months.
Which RBI initiative aims to provide a framework for facilitating cross-border payments in rupees?
A
International Monetary Fund
B
Rupee Trade Corridor
C
Global Financial System
D
Internationalization of the Rupee
Correct Answer:
D. Internationalization of the Rupee
EXPLANATION
RBI has been promoting the internationalization of the rupee to facilitate cross-border payments and reduce dependence on foreign currencies.
What does SWIFT code in banking stand for?
A
Society for Worldwide Interbank Financial Telecommunications
B
System for Web-based International Fund Transfer
C
Secure Wireless International Transaction Format
D
Standard Worldwide International Fund Transfer
Correct Answer:
A. Society for Worldwide Interbank Financial Telecommunications
EXPLANATION
SWIFT is a global standard for secure international fund transfers and messaging between banks worldwide.
Which of the following best describes 'Basel III' in banking?
A
A payment system used by Indian banks
B
An international regulatory framework for bank capital adequacy and risk management
C
A loan classification system for non-performing assets
D
A digital banking security protocol
Correct Answer:
B. An international regulatory framework for bank capital adequacy and risk management
EXPLANATION
Basel III is an international regulatory framework developed by the Basel Committee on Banking Supervision for bank capital and risk management.
What is the current repo rate as per RBI's latest monetary policy (2024)?
A
6.25%
B
6.50%
C
6.75%
D
7.00%
EXPLANATION
As of 2024, RBI's repo rate is maintained at 6.5% as per the latest monetary policy decision by the Monetary Policy Committee.
Which of the following is NOT a part of RBI's monetary policy transmission mechanism?
A
Repo Rate
B
Reverse Repo Rate
C
Statutory Liquidity Ratio
D
Goods and Services Tax Rate
Correct Answer:
D. Goods and Services Tax Rate
EXPLANATION
GST is a fiscal policy tool controlled by the GST Council, not a monetary policy tool of RBI. Repo, Reverse Repo, and SLR are RBI instruments.
What is the maximum tenure for a fixed deposit in Indian banks?
A
5 years
B
10 years
C
15 years
D
Unlimited
Correct Answer:
D. Unlimited
EXPLANATION
Indian banks can accept fixed deposits for any tenure as per the individual bank's policies, with no regulatory upper limit.
