Friday, October 16, 2015

FAQs on Indian Banking to understand it better....part 5

continue from... FAQs on Indian Banking to understand it better....part 4

101. After completion of 15 years, Public Provident

Fund (PPF) can be extended up to how many


Ans: 5 years

102. Short term Money lending process is known as:

Ans: Call Money

103. Treasury bill tenure:

Ans: 91 days, 182 days, 364 days

104. Minimum limit for medium scale enterprises is

Rs. 5 Cr. what is maximum limit?

Ans: 10 Cr.

105. Prime Lending Rate is replaced by:

Ans: Base rate

106. Banks cannot grant Loan below which rate:

Ans: Base Rate

107. If RBI reduces CRR, what happens:

Ans: Credit Supply increases, loans get cheaper.

108. Name the scheme to include every people

under banking system:

Ans: Financial Inclusion

109. Special Drawing Right (SDR) is a monetary

unit of:

Ans: IMF

110. Cheque which is not crossed is called:

Ans: Open cheque

111. Teaser rates are related to which type of


Ans: Home loans

112. What is Teaser loan?

Ans: If a bank offers a slightly lower rate in the

initial years and higher rate in later years, it is

called a teaser loan.

113. The RBI policy rate which is purely an

indicative rate used by RBI to signal long – term

outlook on interest rates is:

Ans: Bank rate

114. The term ‘pre – shipment’ finance relates to:

Ans: export credit

115. A receipt listed in India and traded in rupees

declaring ownership of shares of a foreign


Ans: Indian Depository Receipt (IDR)

116. With effect from July 2012, for calculating of

lending rates, the RBI has advised banks to switch

over to the:

Ans: Base Rate systems

117. Mobile banking fund transfer limit in a day:

Ans: Rs. 50,000

118. The seed capital of Bhartiya Mahila Bank is:

Ans: Rs.1000 crore

119. “Lender of the Last Resort” by Banks is

known as:

Ans: RBI

120. “Fixed deposit” is also referred to as:

Ans: Term Deposit

121. The holidays for the banks are declared as


Ans: Negotiable Instruments Act

122. In banking business, when the borrowers avail

a term Loan, initially they are given a repayment

holiday and this is referred as:

Ans: Moratorium

123. Regulator of Micro, Small and Medium

enterprises in India:

Ans: SIDBI (Small Industries Development Bank of


124. A worldwide financial messaging network which

exchanges between banks and financial institutions

is known as:

Ans: Structured Financial Messaging System


125. The term “Smart Money” refers to:

Ans: Credit Card

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