In my last article Do you know how bank work , we discussion about all aspects of a bank like REPO, REVERSE REPO, CRR etc. o getting overwhelming response now we come up with some FAQs on banking. To understand it better we divided our FAQs in small parts.
1. MICR code consists of how many digits?
Ans: 9 digits.
(First three digits denotes city, next three digits
representing the bank and the last three digits
representing the bank branch)
2. What is the minimum limit in RTGS system?
Ans: 2 lakhs (there is no upper limit in RTGS)
3. What is full form of CTS?
Ans: Cheque Truncation System
4. Under which service, customers may access their
bank account and perform basic transactions from
any of the member branch offices.
Ans: Core Banking Solution (CBS)
5. Exchange of cash flow in different currency is
known as:
Ans: Currency Swap
6. Assets or loans which stop performing after 90
days is known as:
Ans: Non Performing Asset (NPA)
7. Who controls the Monetary Policy in India?
Ans: RBI (Reserve Bank of India)
8. Which card is
issued by NPCI (National Payments Corporation of
India)?
Ans: RuPay Card
9. Definition of Current Account deficit:
Ans: A measurement of a country's trade in which
the value of goods and services it imports exceeds
the value of goods and services it exports.
10. Full form IFSC –
Ans: Indian Financial System Code
11. Commercial paper can be issued for a maximum
period of:
Ans: 365 days or 1 year.
12. The Mutual funds in India follow accounting
standards laid by:
Ans: SEBI (Securities and Exchange Board of India)
13. Minimum amount for Certificate of Deposit has
been fixed at:
Ans: Rs. 1 Lakh
14. AML is a term mainly used in the financial and
legal industries. Expand the term AML:
Ans: Anti Money Laundering
15. PIN is a number allocated to an individual and
used to validate electronic transactions. Expand
PIN:
Ans: Personal Identification Number
16. What is Repo rate?
Ans: It is the rate is the rate at which RBI lends
money to the commercial banks.
17. What is Stale Cheque?
Ans: A cheque which is presented to a bank after 3
months from date of issue is considered as stale
cheque and will often not be honored for cash or
deposit at a bank.
18. What is Bancassurance?
Ans: The selling of life assurance and other
insurance products and services by banking
institutions.
19. The objective of KYC guidelines is to prevent
banks from being used, intentionally or
unintentionally, by criminal elements for money
laundering or terrorist financing activities. What is
the full form of KYC?
Ans: Know Your Customer (KYC)
20. Know Your Customer (KYC) guidelines are
issued under:
Ans: Section 35A of the Banking Regulation Act,
1949
21. In BSBDA (Basic Savings Bank Deposit Account)
the credits in a financial year does not exceed
rupees:
Ans: Rs. 1 lakh
22. In BSBDA (Basic Savings Bank Deposit Account)
the balance at any point of time does not exceed
rupees:
Ans: Rs. 50,000
23. In BSBDA (Basic Savings Bank Deposit Account)
the withdrawals and transfers in a month does not
exceed rupees:
Ans: Rs. 10,000
24. At which rate RBI give loans to commercial
banks?
Ans: Repo rate
25. Full form of CASA:
Ans: Current Account Saving Account
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