2020

Research and Publication Section

Canara Institute of Bank Management
Manipal
CIBM, Manipal-Multiple Choice Questions – 2020 1
 KNOW YOUR CUSTOMER
1. The objective of the KYC/ AML/ CFT is to prevent bank from
a. Being used intentionally only by criminal elements for money laundering.
b. Being used randomly for temporary fund management by fraudsters.
c. Being used unintentionally, by criminal elements for terrorist financing activities only.
d. Being used intentionally or unintentionally, by criminal elements for money laundering or
terrorist financing activities.

2. PMLA stands for

a. Prime Minister Labour Agency b. Prime Minister Legal Authority

c. Prevention of Money Laundering Act d .Prevention of Monetary Actions

3. Which of the following is incorrect?

a. CAP - Customer Acceptance Policy
b. CIP - Customer Identification Procedures
c. CIC- Credit Investigating company
d. UCIC – Unified Customer Identification Code

4. Customer acceptance policy of the bank is framed so as to take care of which of the aspects?
a. No account is opened without applying appropriate customer due diligence
b. No account is opened in the name in anonymous/ fictitious/ became name
c. No transactions or account based relationship is undertaken without following the CDD
procedure.
d. All specified mandatory information to be compulsorily to be obtained while opening the
account and during the periodic updating and optional/ additional information after Opening
the account with the consent of customer
e. All of the above

5. Which one is not an OVD?

a. Job Card issued by NREGA duly signed by an officer of the State Government
b. Letter issued by the National Population Register containing details of name and Address
c. Ration Card
d. Driving License

6. Which among the following is not correct for ‘Small Account’

a. Balance at any time does not exceed Rs 50,000
b. Total withdrawal permitted in a month is up to Rs 25,000
c. Total Credit in a financial year does not exceed Rs 1 lakh
d. Foreign remittance cannot be credited before taking OVD.

CIBM, Manipal-Multiple Choice Questions – 2020 2

7. What are the documents to be submitted by an individual for establishing an account based
relationship with the bank as per the guidelines?
a. Identity Proof b. PAN Card/Form 60
c. Address Proof, d. Photograph
e. All the above

8. In how many days foreign student has to submit the document of local address and during that
period what is the cap of credit as foreign remittance and what is the cap for withdrawal limit.
a. 30 days and USD 10,000 and Rs.50,000
b. 45 days and Rs. 1,00,000/- Rs 25,000/-
c. 30 days USD 1,000 and Rs. 50,000
d. 30 days USD 2,500 and Rs. 50,000/-
e. None of the above

9. A foreign student can open which of the account during stay for study purpose
a.SB general account b.NRE SB
c.Canara Saral Account d.NRO SB account

10. Which are the simplified documents acceptable in the case of low risk customers for Customer
Identity?
a. Identity Card with applicant’s photograph issued by Central/ State Government Departments,
Statutory/ Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks
and Financial Institutions
b. A letter issued by Gazetted officer, with a duly attested photograph of a person.
c. Utility bill which is not more than 2 months old of any service provider (electricity, telephone,
postpaid mobile phone, piped gas, water bill) or Property or Municipal Tax receipt.
d. a or b

11. Certifying authorities to certifying OVDs (Official Valid Documents) of NRIs (Non-Resident
Indians) & PIOs (Person of Indian Origin) [as defined in Foreign Exchange Management (Deposit)
Regulation, 2016 (FEMA 5 (R))] are,
a. Authorized officials of Overseas Branches of scheduled commercial banks registered in India,
branches of overseas bank with whom Indian Banks have relationship.
b. Notary public abroad, Judge, Court Magistrate, Indian Embassy/ Consulate General in the
country where the non-resident customer resides
c. Any Gazetted Officer in India
d. Any of a & b above

CIBM, Manipal-Multiple Choice Questions – 2020 3

12. Branches to scan and upload KYC data to CKYC within
a. Within 3 days of the account is opened
b. Within 5 days from the account is opened
c. Within One week of the account is opened
d. Within 10 days of the account is opened
e. No need to upload

13. All individual CASA accounts are eligible for CKYC ID; the CKYC ID will be populated in the
CIM50 Web page of CBS after ___ hours from the day of scanning and uploading of CKYC data.
a. 24 hours
b. 48 hours
c. 72 hours
d. 07 hours

14. Documents to be scanned and uploaded for CKYCR

a. ID proof and address
b. Proof of Identity, Proof of Address, Cropped up Signature and Photograph
c. Signature and Photograph
d. Application

15. Unique Customer Identification Code (UCIC) helps bank

a. To identify a customer
b. Track the facility availed
c. Monitor financial transactions
d. Improve risk profiling
e. All the Above

16. Before opening the account branches have to verify the prospective account holder’s details in
CKYC package under the option……………………………………
a. Customer Unique Identification Code
b. CKYC Management
c. Aadhar Verification
d. Account Opening

CIBM, Manipal-Multiple Choice Questions – 2020 4

17. In case of Married Woman, As per the amendment to the Rules, 2005 (Gazette Notification
dated 22.03.2015), any OVD shall be deemed to an –officially valid document even if there is a
change in the name subsequent to its issuance, provided it is supported by
a. Marriage Certificate issued by State Government
b. Gazette Notification, indicating such a change of name
c. Either Marriage Certificate or Gazette Notification
d. Both Marriage Certificate and Gazette Notification

18. If customer is desirous of receiving any benefit or subsidy under any scheme notified under
Section 7 of Aadhar Act 2016,
a. Submission and Linking of Aadhar Number to account is mandatory
b. Submission of any of Official Valid Document will holds good
c. Submission of PAN Card is mandatory
d. Need not submit any official valid document

19. What is the procedure for implementation of Section 51A of the The Unlawful Activities
(Prevention) Act, 1967 (UAPA)
a. Freeze, seize or attach funds and other financial assets or economic resources held by, on
behalf of or at the direction of the individuals or entities listed in the Schedule to the Order, or
any other person engaged in or suspected to be engaged in terrorism;
b. Prohibit any individual or entity from making any funds, financial assets or economic resources
or related services available for the benefit of the individuals or entities Listed in the Schedule
to the Order or any other person engaged in or suspected to be engaged in terrorism;
c. Prevent the entry into or the transit through India of individuals Listed in the Schedule to the
Order or any other person engaged in or suspected to be engaged in terrorism;
d. All of the Above

20. The Unlawful Activities (Prevention) Act define “Order” as:

a. The order which has given power to state authority to search any one
b. “Order” means the Prevention and Suppression of Terrorism (Implementation of Security
Council Resolutions) Order, 2007, as may be amended from time to time
c. Either a or b
d. Both a and b

CIBM, Manipal-Multiple Choice Questions – 2020 5

21. In case, the particulars of any customers match with the particulars of designated
individuals/entities, regarding funds, Financial Assets or Economic Resources or related services
held in the form of bank account, Stock or Insurance policies etc. by what time Banks/ Stock
Exchange/ Insurance Company will report and to whom it will be reported
a. 24 hours with full particulars to Joint Sect(IS.I), MHA
b. 24 hours with full particulars to MEA
c. 48 hours with full particulars to MEA
d. Need not be reported

22. Which one of the following is incorrect?

a. PAN card- Address Proof
b. Driving License- ID Proof
c. Aadhar Card- ID as well as address proof
d. Electricity Bill- Address Proof

23. Review of Customer Risk Categorization

a. To be carried out quarterly
b. To be carried out half yearly as on 15th of May and 15th November every year
c. Once in a year as on 15th May
d. As and when needed

24. Customer Identification Procedure to be carried out

a. While establishing the banking relationship
b. While carrying out a financial transaction
c. When the bank has a doubt about the authenticity or adequacy of the Customer Identification
Data, it has obtained.
d. When bank sells third party products as agents
e. All of the above

25. Where the client is a partnership firm, which documents are not required?
a. Registration Certificate
b. Memorandum of Association
c. Partnership Deed
d. KYC of authorized signatories
e. PAN of company and PANs or Form 60 as defined in the Income Tax Rules, 1962 issued to
authorized signatory of the partnership firm.

CIBM, Manipal-Multiple Choice Questions – 2020 6

26. Where the client is an unincorporated association or a body of individuals, certified copies of
following documents are to be submitted:
a. Resolution of Managing body of such association or body of individuals
b. Power of attorney granted to the person who will transact on its behalf.
c. Any officially valid documents which contains proof of identity/ address in respect of managers,
officers and employees holding an attorney to transact on its behalf. And
d. PAN or Form 60 as defined in the Income Tax Rules, 1962 issued to the person holding an
attorney to transact on behalf of the unincorporated association or a body of individuals.
e. All the above

27. In respect of trust which is not correct subject to Customer Due Diligence?
a. OVDs of any natural person exercising ultimate effective control over the trust through a chain
of control or ownership/ Beneficiaries with 25% or more interest in the trust
b. OVDs of Trustees
c. OVDs of any natural person exercising ultimate effective control over the trust through a chain
of control or ownership/ Beneficiaries with 15% or more interest in the trust
d. OVDs of the author of the trust

28. Who is not a beneficial owner in a Company?

a. Natural persons who whether acting alone or together or through one or more juridical person
has/ have a controlling ownership interest or who exercise control through other means.
b. Natural persons who whether acting alone or together or through one or more juridical person
has/ have ownership of/ entitlement to less than 15% of shares or profits of the company.
c. Natural persons who whether acting alone or together or through one or more juridical person
has/ have the right to appoint majority of the directors or to control the Natural persons.
d. Natural persons who whether acting alone or together or through one or more juridical person
has/ have ownership of/ entitlement to more than 25% of shares or profits of the company.

29. Periodic updation of KYC

a. 8 years for low risk, 10 years for High Risk and 2 years for medium Risk customers
b. 2 years for low risk, 10 years for High Risk and 8 years for medium Risk customers
c. 10 years for low risk, 2 years for High Risk and 8 years for medium Risk customers
d. 8 years for low risk, 2 years for High Risk and 10 years for medium Risk customers

30. What is the procedure for KYC non compliant customer

a. Due notice of three months for completion of KYC requirements to be given
b. After 3 months due notice of 3 months to be given partial freezing
c. After six months of partial freezing total freezing of the account (i.e., in operative)
d. All of the Above

CIBM, Manipal-Multiple Choice Questions – 2020 7

31. During partial freezing of the account
a. Debits are allowed but no credits are allowed
b. Credits are allowed but no debits are allowed
c. Both debit and credit are allowed with a memo
d. Both debits and credits are not allowed

32. Which one is incorrect regarding total freezing of account?

a. During this stage no debits and credits are allowed
b. Making account in operative
c. Credits are allowed but debits are not allowed
d. Customers have right to close the account

33. In case of low risk customer, which of the following statements are not true?
a. Fresh proof of identity and address shall not be sought when there is no change in status of
identity and address, as per the self-certification submitted.
b. A certified copy of proof of address forwarded through mail/ post shall be acceptable, in case of
change of address
c. Physical presence of low risk customer must be ensured.
d. All of the Above
34. Which is true in case of Cross Border Wire Transfer Report (CWTR) is require to filed with FIU-
IND
a. More that Rs 5,00,000 or its equivalent in foreign currency
b. Where the origin and destination of fund is India
c. CWTR is required to file within 15th day of succeeding month with FIU-IND
d. All of the above

35. Which one is not true

a. Cash Transaction Report (CTR) more than 10 lakhs or its equivalent in foreign currency has to be
submitted monthly by 15th of next month
b. All transactions involving receipts from non-profit organizations (NTR) more than Rs. 10 Lakhs
or its equivalent in foreign currency has to be submitted monthly by 15th of the next month
c. All cash transactions where counterfeit currency notes have been used or where any forgery of
any valuable security or a document has taken place facilitating the transactions. (CCR) by 15th
of next month.
d. Walk in customer visit report has to be submitted monthly by 7th of next month

CIBM, Manipal-Multiple Choice Questions – 2020 8

36. Who can permit opening of accounts of Politically Exposed person / permit continuation of
accounts of a customer, subsequently becoming a politically exposed person?
a. Branch in charges including Manager & Senior Managers
b. Scale-IV & above heading the branches. Other branches to take permission from MIPD Section,
Circle Office
c. Only RO & above has got the powers
d. RBI permission is required

37. Which statement is true for simplified norms for Self Help Groups (SHGs)
a. KYC verification of all the members of SHGs need not be done while opening the Savings Bank
account of the SHGs and KYC verification of all the office bearers would suffice.
b. At the time of credit linking of SHGs, KYC verification of all the members are necessary.
c. Re-KYC of office bearer is needed
d. None of the Above

38. What are the documents to be verified for a foreign national student?
a. Passport with visa and immigration endorsement, which bears the proof of identity and address
in the home country; the admission letter from an educational institute in India;
b. Photographs
c. Undertaking to submit the local address within 30 days
d. All the above along with an approval letter from RBI In the case student is of Pakistani
nationality.

39. Correspondent banking is the provision of banking services

a. By one bank (the “correspondent bank”) to another bank (the “respondent bank”).
b. These services may include cash/ funds management, international wire transfers, drawing
arrangements for demand drafts and mail transfers, payable-through-accounts, cheques
clearing etc.
c. Banks may take gather sufficient information to fully understand the nature of business of the
bank including information on management, major business activities.
d. All the above are correct

40. Bank shall maintain record at least

a. 5 years from the date of transactions between the bank and the client
b. 10 years even after closure of last transaction or closure of account.
c. Permanently
d. 8 years

CIBM, Manipal-Multiple Choice Questions – 2020 9

41. KYC documents for opening bank accounts of companies
a. Certificate of Incorporation
b. Memorandum and articles of association
c. Resolution from board of directors & power of Attorney granted to its managers, officers or
employees to transact on its behalf.
d. Corporate Identification Number (CIN) and PAN of the company
e. All the Above

42. All accounts where the thanks giving letter has been returned undelivered are to be classified
as
a. High Risk under CIM 50
b. Medium Risk under CIM 50
c. Low Risk under CIM 50
d. No change of risk categorization is needed

43. “Transaction” means a purchase, sale, loan, pledge, gift, transfer, delivery or the arrangement
thereof and includes-
a. Opening of an account, deposits, withdrawal, exchange or transfer of funds in whatever
currency, whether in cash or by cheque, payment order or other instruments or by electronic or
other non-physical means;
b. The use of safety deposit box or any other form of safe deposit
c. Entering into any fiduciary relationship
d. Any payment made or received in whole or in part of any contractual or other legal obligations
or establishing or creating a legal person or legal arrangement
e. All the above

44. Which does not match as customers risk

a. Travel Agency- Medium Risk
b. NGO which supported by UNO- Low Risk
c. Restaurant, Retail Shop- Medium Risk
d. Blind- High Risk

45. For small value accounts shall remain operational initially for period of _____ and there after
further period of ______ If the holder of such an account provides evidences before the banking
company of having applied for any of the OVD within _____of the opening of the said account,
within entire relaxation provision to review in the respect of the said account _____
a. 12 months, 12 months, 6 months, 24 months
b. 12 months, 12 months, 12 months, 24 months
c. 12 months, 24 months, 6 months, 12 months
d. 12 months, 6 months, 6 months, 24 months

CIBM, Manipal-Multiple Choice Questions – 2020 10

46. What does UCIC stands for
a. Unified Customer Identity Code
b. Unique Customer Identification Code which help banks to identify the customers.
c. Urban Customer Identity Card
d. Unique Client Identification Code in holistic manner

47. Which of the following is not correct?

a. Beneficial owners need not to be determined and identified
b. Beneficial owners not required to be done for listed companies or their subsidiaries.
c. In case of too complex structures, the person who exercises control over the affairs of the
company is deemed to be the beneficial owner and must be identified
d. For company controlling owner interest means ownership of/ entitlement to more than 25
percent of the shares or capital or profits of the company.

48. Who is authorized to act as and perform the functions of CKYCR?

a. Central Registry for Securitization Asset Reconstruction and Securities of India (CERSAI)
b. Department of CKYCR, Finance Ministry
c. UIDAI
d. RBI

49. In case OVD furnished by the customer does not contain updated address, which of the
following maybe taken for proof of address:
a.Utility Bill not more than 2 months old b.Property tax receipt
c.Letter of allotment from employer d.Pension or family pension payment order
e.Any of the above

50. What are the enhanced due diligence to be exercised in the accounts of non face to face
customers?
a. Certification of all documents presented
b. Calling for additional documents
c. First payment to be effected through the customers KYC compliant account with another bank.
d. All of the above

51. Who approves the policy for correspondent banking relationship of the bank?
a. Board of the bank
b. Committee headed by the Chairman/ CEO/ MD subject to post facto approval of the board in its
next meeting.
c. RBI
d. Both a & b

CIBM, Manipal-Multiple Choice Questions – 2020 11

52. During the periodical review if the low risk category customer for whom simplified procedure
had been applied earlier, is re-categorized as “Moderate or High Risk” what steps are to be
taken by the bank?
a. Customer has to submit Aadhar or PAN card/ Form 60 immediately
b. In case Aadhar/ PAN is not available any of the Govt. notified OVDs & Form 60 immediately
c. In case party fails to comply bank to proceed with Partial Freezing/ Closure
d. Obtain (a or b) or proceed as per c

53. For companies which are the legal documents establishing the incorporation of company,
business purpose and other underlying terms?
a. Certificate of Incorporation
b. Certificate of Incorporation, Memorandum and Articles of Association & PAN of the company
c. Certificate of Incorporation, Articles of Association only
d. Search report and Status report

54. For partnership firms, which are the legal documents establishing formation of partnership
firm, business purpose and terms mutually agreed?
a. Registration Certificate if registered
b. Partnership deed
c. PAN number of the firm
d. Partnership Deed & PAN are mandatory and Registration Certificate wherever available.

55. For opening an account of a trust, certified copies of which of the following document shall be
obtained?
a. Registration Certificate
b. Trust deed
c. Identification information as mentioned under Section 15 in respect of the person holding
power of attorney to transact on its behalf
d. All the above

56. Designated Director means

a. A person designated by the reporting entity (bank, financial institution, etc) to ensure overall
compliance.
b. The person hasthe obligations imposed under chapter IV of the PML act and the rules and
includes the Managing Director or a whole-time Director duly authorized by the Board of
Directors if the reporting entity is a company.
c. Both a & b
d. None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 12

57. Which are the key elements of KYC Policy of RBI? Select the most comprehensive answer.
a. Customer Acceptance Policy (CAP)
b. Customer Identification Procedures (CIP)
c. Monitoring of Transactions
d. Risk Management
e. All the above

58. Bank applies the CDD procedure at UCIC (Unique Customer Identification Code) level. So, if an
existing KYC compliant customer desires to open new account, fresh CDD exercise is
a. Not required
b. Mandatory
c. Optional
d. Branch Manager discretion

59. Suspicious transaction means a transaction which

a. Gives rise to a reasonable ground of suspicion that it may involve proceeds of an financial
offence regardless of the value involved
b. Appears to be made in circumstances of unusual or unjustified complexity
c. Appears to have no economic rationale or bona-fide purpose
d. May involve financing of activities relating to terrorism
e. All the above

60. The periodicity of reporting of Suspicious transaction is

a. Quarterly within 7th of Jan, April, July and Oct every year
b. Monthly within 7th of succeeding month
c. Yearly with March balance Sheet
e. Reported as & when identified/detected

Answer key
1 D 2 C 3 D 4 E 5 C
6 B 7 E 8 C 9 D 10 D
11 D 12 B 13 A 14 B 15 E
16 B 17 C 18 A 19 D 20 B
21 A 22 A 23 B 24 E 25 B
26 E 27 A 28 B 29 C 30 D
31 B 32 C 33 C 34 D 35 D
36 B 37 A 38 D 39 D 40 A
41 E 42 A 43 E 44 D 45 B
46 B 47 A 48 A 49 E 50 D
51 D 52 D 53 B 54 D 55 D
56 C 57 E 58 A 59 E 60 E

CIBM, Manipal-Multiple Choice Questions – 2020 13

 LEGAL FRAME WORK IN BANKS

NEGOTIABLE INSTRUMENTS ACT 1881:

(a) Negotiable Instruments & Negotiation:

1. The instruments such as (a) Airway Bill, (b)Bank Note, (c)Letter of Credit, (d)Demand Draft, are
Not treated as Negotiable Instruments.

Which of the following Statement is correct?

a. a,b,c
b. a,c,d
c. a,b,c,d
d. a,b,d

2.Negotiable Instrument Act provides definition of (a) Promissory Note, (b) Bill of Exchange, (c)
Cheque,(d)Demand Draft. Which of the following is correct?
a. a, b, c
b. b, c, d
c. a, c, d
d. a, b, c, d

3. The Bank has obligation to make payment of Cheque issued by Customer:This is as per which
Section of NI Act?
a. 85
b. 131
c. 30
d. 31
e. 89

4.As per provisions of Sec 48 of NI Act, 1881 an Order Cheque is transferable (Negotiated)only by:
a. Only Delivery
b. Endorsement and Delivery
c. Only Endorsement
d. Not Transferable

5. Which among the following Parties are liable on the Negotiable Instruments either as Drawer or
as Acceptor or Endorser?
a. a minor
b. an insolvent
c. a lunatic
d. None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 14

6. Which among the following is a Negotiable Instrument as per provisions of Section 13 of
Negotiable Instrument Act?
a. Bill of Lading
b. Railway Receipt
c. Goods Lorry Receipt
d. None of the above

7. Protection is available to paying banker for paying draft with endorsement u/s… of NI Act
a. 85
b. 85A
c. 131
d. 130

KEY:
1 2 3 4 5 6 7
a a d b d d b

(b) Holder for Value and Holder In Due Course:

1. A has received an Order Chequewhich bears a forged endorsement in his favour. The cheque
was originally issued in favour of Mr. X who endorsed in favourMr. Y but Mr. Y had misplaced it
and Mr. Z who found this cheque endorsed it in favourof Mr.A by forging Mr. X's signature. The
holder of cheque will be :
a. A b. Y c. Z d. None of the above

2. Holder in due course is defined under ____ Section of NI Act 1881

a. 10 b. 9 c.18 d. 8 e. 13

3. The holder of a Cheque is holder in due course if

(a) he has right of possession (b) he receives instrument for lawful consideration (c) the instrument
is in his possession.
Which of these should be satisfied:
a. a and b only b. b and c only c. a and c only d. a to c all

4. A customer tenders to a Bank an outstation cheque of Rs.10000 for collection. He requests for
instant credit, to which Bank agrees. What would be Bank be called.
a. Agent of Customer b. Holder for value
c. Holder d. Holder in due course

CIBM, Manipal-Multiple Choice Questions – 2020 15

5. Who among the following is only a Holder and not a 'Holder' in due course?
a. Holder of a bearer cheque
b. Holder of a crossed order cheque
c. Holder of a Non-negotiable crossed cheque
d. Holder of a non-crossed Order cheque

6. Holder is defined under _____ Section of NI Act 1881

a. 10 b. 9 c. 18 d. 8

Key:

1 2 3 4 5 6
b b d b c d

(c) Bills of Exchange And Promissory Note:

1. Promissory Note has been defined as per section..... NI Act:

a. 3 b. 4 c. 5 d. 6

2. Who is liable on a Usance bill of exchange:

a. drawer only
b. acceptor only
c. drawer and acceptor both
d. after acceptance primary liability of acceptor and secondary liability of drawer

3.Under section 31 of RBI Act, who can issue the Bill Of Exchange or Promissory Note payable to
bearer: (a) RBI (b) Central Govt. (c) Commercial Banks (d) any person in India:
a. a to d all b. a to c all c. c and d only d. a and b only

4. Mr. Dinesh Kumar frequently induces Mr. Tarsem Chand to make a Promissory Note inhis
favour . He endorses it to Mr. Sachin Kumar who takes it for value and without any notice of
the fraud. On presentation of the note for payment. It is dishonored. Mr. Sachin Kumar wants
to recover this money. When he can sue for recovery?
a. Since the note has been the result of a fraud, he cannot recover from the party.
b. Since Dinesh Kumar has notice of fraud he is the only person liable on the note.
c. Since Tarsem Chand is also the vic m, he is not liable on the note.
d. Both Mr.Tarsem Chand and Dinesh Kumar are liable on the note.

5. A Bill of Exchange is defined u/s ..... of NI Act.

a. 10 b. 131 c. 5 d. 4

6. The provision regarding Noting is defined under section ........of NI Act.

a. 100 b. 99 c. 85 A d. 131

CIBM, Manipal-Multiple Choice Questions – 2020 16

7. A Bill is presented to Drawee. What is the period during which he is to give hisacceptance?
a. 3 days including holidays b. 3 days excluding holidays
c. 48 hours including holidays d. 48 hours excluding holidays

8. A bill drawn by ABC Ltd in favour of S is endorsed in favour of P in blank. This bill is stolenby a
person called D who delivers it to F for value by writing the words above the blankendorsement
'pay to F'. On presentation it is dishonored. From whom will F, be able torealize?
a. F can recover from all except P & D
b. F will not be able to recover from any one, since P has not endorsed in favour of F.
c. F can recover from D alone
d. F can recover from drawer only

9. Where is the time for payment is not mentioned in a promissory note, it is:
a. it is invalid instrument b. inchoate instrument
c. no payment can be demanded d. payable on demand

10. If a Promissory Note is payable in installments, the period of grace for payment will be
available.
a. only once b. on each installment
c. only on last installment d. no grace period available for promissory note

11. Firm ABC supplies material to various Govt., Departments, against payment to be received
subsequently. Such bills are called?
a. Usance bills
b. Supply bills
c. Government bills
d. Accommodation bills

12. A Bill of Exchange has been accepted by the drawee and its due date for payment falls
onJanuary 26, which is a holiday u/s 25 of NI Act. January 25 is a Sunday and January 24 is alocal
holiday on account of Elections. It should be paid by the drawee on or before:
a. It can be paid on January 27
b. it can be paid within 3 days from January 26 due to grace period available to the
drawee
c. It can be paid on January 24 only
d. It has to be paid by January 23

13. A formal Notary Certificate based on Noting, to attest dishonor of the Bill is called:
a. Noting of the Bill b. Protesting of The Bill
c. Notice of Dishonor d. Court Direction

14. The 3 days of grace for payment of Usance bills or Promissory Notes are allowed as
perSection.... of NI Act:
a. 22 b. 23 c. 24 d. 25

CIBM, Manipal-Multiple Choice Questions – 2020 17

15. What will be due date for a bill dated 24.9.2014 payable 90 days after date:
a. Dec. 23, 2014 b. Dec. 26, 2014 c. Dec. 22, 2014 d. Dec.25, 2014

16. A bill dated 1.1.2014 is payable 2 months after sight and it was sighted on 15.1.2014, but
accepted on 18.1.2014. The due date for payment would be:
a. 15.3.2014 b. 18.3.2014 c. 17.3.2014 d. 21.3.2014

17. Which among the following is an Inland bill of exchange:

a. a bill drawn in Delhi and payable by Mr. Surinder, resident in India in Mumbai
b. a bill drawn in Kolkata and payable by Mr. Ghosh, resident in India, in London
c. a bill drawn in Chennai and payable in Bangalore by Mr. John an NRI
d. all the above

18. A bill of exchange is dated 31.08.2014 and is payable 3 months after date. It is presented on
Sept 02, 2014 and accepted by the drawer on Sept. 03, 2014, its due date is
a. Dec. 03, 2014 b. Dec. 04, 2014
c. Dec. 05, 2014 d. Dec. 02, 2014

19. What will be the due date for a bill dated 1.2.2012 payable 45 days after sight and theills was
accepted on 6.2.2012:
a. 23.3.2012 b. 25.3.2012 c. 26.3.2012 d. 28.3.2012

20. A bill is presented on May 15, 2014 and accepted on 16.5.2014. Its due date of paymentwill be
..... if it has to be paid within 2 months of the presentment:
a. July 15, 2014 b. July 19, 2014
c. July 16, 2014 d. July 12, 2014

21. For which among the following, acceptance of the drawer of the instrument is required:
a. demand promissory note b. Usance Promissory Note
c. demand bill of exchange d. Usance Bill of Exchange

22. What will be the due date of payment for a promissory note dated 1.2.2014 payable one
month after its presentment, which is 12.2.2014:
a. 12.03.2014 b. 15.03.2014 c. 04.,03.2014 d. 12.04.2014

23. A bill dated Dec. 31, 2013 is payable 2 months after date. Its due date of payment would be:
a. March 07, 2014 b. March 05, 2014
c. March 03, 2014 d. March 02, 2014

24. What will be due date for a bill dated Nov.10, 2014 payable 4 months after date:
a. March 12, 2015 b. March 13, 2015
c. March 15, 2015 d. March 11, 2015

CIBM, Manipal-Multiple Choice Questions – 2020 18

25. X draws a bill of exchange on Y. Y accepts it for payment. Actually no sale purchase has taken
place. This bill is called:
a. clean bill of exchange b. documentary bill of exchange
c. Accommodation Bill d. genuine bill

KEY:

1 2 3 4 5 6 7 8 9 10
b d d d c b d a d b
11 12 13 14 15 16 17 18 19 20
b d b a b d d a b b
21 22 23 24 25
d b c b c

(d) CHEQUES:
1. A cheque is defined u/s of NI Act:
a. 6 b. 13 c.9 d. 4

2. Legal amount in cheque stands for:

a. Amount in words b. Amount in figures
c. Amount in words and figures whichever is higher d. All the above

3. A cheque issued by a customer, the words bearer or order are not written. This
cheque will be treated as:
a. Bearer cheque b. Order Cheque
c. This is not a valid cheque d. This is not negotiable instrument now

4. If your branch receives a cheque of Rs 500 in figures and Rupees Fivelacks in words
a. Is return as mandate is not clear
b. Is paid amount written in words
c. Is paid amount in figures as it less amount
d. Is paid amount in words if otherwise in order under sec 18 of NI Act.

5. On cheque issued by a customer, the words bearer or order are written. This
cheque will be treated as
a. A bearer Cheque
b. An Order Cheque
c. Not a valid cheque
d. This not negotiable instrument now.

CIBM, Manipal-Multiple Choice Questions – 2020 19

6. In which of the following types of cheques alterations are not allowed by RBI
a. Paper cheque b. CTS cheque
c. Electronic Cheque d. Cheque with account payee crossing

7.Z endorsed a cheque in blank, in favour of B who negotiates it in favour of C and C transferred it
to D without endorsement. In the event of dishonour of the cheque:
a. D can demand from C b. D can demand from B
c. D can demand from Z d. A to C

8.Who among the following is competent to endorse a cheque or other instrument?

a. a minor who is 12 years old
b. an insolvent person on behalf of other competent person who has given him
mandate
c. an illiterate person who cannot sign
d. a pardanashin lady
e. all the above

9. The payee of a bill of exchange writes above his signature that is case of dishonour, he may not
be given notice of dishonour and would continue to be liable. What kind of endorsement has
been made:
a. Conditional endorsement b. Facultative endorsement
c. Sans recourse endorsement d. partial endorsement
e. Blank endorsement

10.Crossing of a cheque can be made by (a) drawer,(b)payee as holder,(c) a bank,(d) not-

negotiable crossing by the paying bank. Which of the following combinations is correct in this
context :
a. a, b, d b. a, c, d
c. b, c, d d. a, b, c

11.Not negotiable crossing has been defined u/s…of NI Act:

a.147 b. 131
c. 130 d. 118

12. A cheque crossed specially is presented for cash paymentat the counter of the paying branch,
by the cashier of the bank, in whose favour it is crossed:
a. The drawee bank should make the payment
b. The drawee bank should refuse the payment
c. Bank should advise collecting banker to present his cheque through clearing house
d. Being a crossed cheque, payment cannot be considered in due course

CIBM, Manipal-Multiple Choice Questions – 2020 20

13. The ‘payees account crossing’ is defined u/s ----------- of ----------:
a. Section 13 of NI Act b. Section 130 of NI Act
c. Section 130 of RBI Act d. None of the above

14. Crossing is a direction:

a. of drawer to the payee b. of endorser to endorsee
c. of drawer to drawee bank d. none of the above

15.3 cheques(dated as Dec25,2005, Jan 05,2006 and Feb 01,2006)have been signed on Jan
10,2006, by an agent appointed( on Dec31, 2005)by the customer. The agent died on January
26, 2006. The cheques are presented for payment on Feb 12, 2006 which of the following is
correct:
a. Cheque dated Dec 25 and Jan 05, shall be paid
b. Cheque dated Jan 05 and Feb 01, shall be paid
c. all the Cheques would be returned as the signatory has died
d. Cheque dated Jan 05 only shall be paid

16.An order cheque is written by the drawer in English but he did not write the name of the payee.
Payee wrote his name in Hindi script. The cheque is presented for payment by the payee. What
should the Bank do?
a. Payee should be advised to get it authenticated from the drawer
b. drawer should be asked to write the name in English and put is authentication
c. payee would be advised that he cannot write his name
d. cheque will be paid
e cheque will be returned

17.There is credit balance of Rs.55000 in Current Account on 1.1.2011 and Three cheques of
Rs.12000(favouring Income Tax Dept), Rs.44000(favouring LIC of India and Rs.46000 (Telephone
Bill) respectively and simultaneously presented for payment through clearing on 2.1.2011.
a. Bank will pay the cheque which is in favour of ITO
b. Bank will pay the cheque with highest amount
c. Bank will return all the cheques
d. Bank will pay the cheque with lowest cheques.

18. Which of the following is true with regard to objective of getting signature of the person
obtaining payment of a bearer cheque?
a. to get it endorsed properly
b. to get final discharge of the instrument
c. to create proof that the instrument was presented
d. to get receipt of payment

19. Payment in due course is defined u/s ……… of NI Act:

a. 13 b. 10
c. 15 d. 118
e. 131 A

CIBM, Manipal-Multiple Choice Questions – 2020 21

20. Where amount in words an figure differ, the provision for making the payment of amount
mentioned in words in a cheque is described u/s ….. of NI Act:
a. 18 b. 19
c. 20 d. 21
e. 118

21. To prevent cheque related frauds, the examination under ultra- violet (UV) lamp for all
cheques beyond a threshold of Rs. _____ is mandatory:
a. Rs. 50000 b. Rs. 1 lac
c. Rs. 2 lac d. Rs. 5 lac

22. Z issues a cheque in favour of Y and X steals it. By forging Y’s signatures, he delivers it to W,
who obtains the payment of the cheque from your branch. As a paying branch, can you get
protection?
a. Yes u/s 85(1) b. Yes u/s 131 & 10
c. No it is forgery d. No not permitted u/s 118
e. no protection is available

23.When a bank is collecting a cheque of a newly opened saving bank deposit account as first
entry in the account:
a. Banker would not get protection because it has not collected the cheque for a customer
b. The banker will get protection if the account it opened after complying with KYC requirements
c. The banker will not get protection because the first entry in the accounts is not in cash.
d. a and c

24. A customer in your branch deposited a cheque for collection from some other bank. The
cheque kept on lying with the branch for a long period for its collection and in the meantime
drawer has become bankrupt:
a. loss will be of paying bank
b. collecting bank will pay for loss to the customer due to unreasonable delay
c. loss will be of the customer
d. loss shall be borne by the collecting bank and the customer

25.What is the time period, to make complaint (i.e. file suit in the court) by the holder:
a. within 30 days from date of receipt of information about dishonor by the holder
b. within 3o days from date of issuing notice to the drawer to make the payment
c. within one month from date of cause of action
d. within two months from date of non-receipt of reply from the drawer, in response to the notice
from holder
e. any of the above, whichever is later.

26. What punishment is prescribed under NI Act, for dishonor of cheque:

a. fine equal to the amount of cheque b. fine up to double the amount of cheque
c. imprisonment up to 2 years d. a and c
e. b and or c

CIBM, Manipal-Multiple Choice Questions – 2020 22

27.If there is compromise between parties and an offence is compounded by the court by
following summary trial procedure, what is the punishment under NI Act for dishonour of
cheque:
a. fine up to double the amount of the cheque b. fine up to Rs.9000
c. imprisonment up to 3 year d. imprisonment up to 2 year
e. none of the above

28. A customer will not be issued a further cheque book if ______ cheques of Rs.1 cr each are
returned bank in a financial year:
a. 10 cheques b. 6 cheques
c. 5 cheques d. 4 cheques

29. What is the time limit during which the bank has to return the dishonoured cheque to the
customer:
a. one week b. three days
c. 24 hours d. at discretion of the bank

30. Due to heavy rush of customers, a cheque with forged signatures in the account of Images and
Graphics is paid by bank:
a. bank is liable as no statutory protection is available
b. if payment is in due course, bank is not liable
c. bank is not liable since bank was not negligent
d. none of the above
e. when payment is due to rush of work, the bank will not liable

31. A drawee bank is liable to the following for wrongful dishonour of a cheque:
a. The payee, if suffers any loss
b. The endorsee, if suffers any loss
c. The presenter, if suffers loss
d. The account holder (drawer), if suffers loss

32. Which among of the following cannot be treated as a material alteration:

a. a holder converts an order cheque into a bearer cheque
b. holder converts a special crossing into a general crossing
c. holders fill the amount both in words and figures, which was blank earlier
d. holders change the amount in figures which was not matching to the amount in words

33. If a materially altered cheque is paid and the alteration is not visible even after careful
examination of the cheque, the bank is protected:
a. U/s 87 of NI Act b. U/s 89 of NI Act
c. U/s 85(1) of NI Act d. No protection is available

34. Which of the following is a Material Alteration:

a. A bearer cheque converted to order b. Special crossing converted to General Crossing
c. crossing a cheque d. All the above

CIBM, Manipal-Multiple Choice Questions – 2020 23

 KEY:

1 a 2 a 3 b 4 d 5 a
6 b 7 c 8 e 9 b 10 d
11 c 12 a 13 d 14 c 15 d
16 d 17 a 18 d 19 b 20 a
21 c 22 a 23 b 24 b 25 c
26 e 27 e 28 d 29 c 30 a
31 d 32 c 33 b 34 b

(e) Demand Drafts

1. In case of payment of draft bearing endorsements, the paying banker is protected under….
Section of Negotiable Instruments Act 1881, if other conditions are satisfied:
a. 85 b. 85 A
c. 131 d. 87
e. 128

2. On the information that the draft has been lost, a duplicate has been issued after taking
indemnity bond. The original and duplicate are presented for payment through clearing, by two
different banks on the same day. Both have been branded with stamp payee’s account credited.
The bank:
a. Will pay the duplicate b. Will pay the original
c. Will return both d. Both will have to be paid

3. Which of the following can be issued against cash as per RBI guideline, if the amount is Rs.50000
or above (1) demand draft (2) mail transfer (3) telegraphic transfer (4) travellers cheques:
a. 1 and 4 only b. 2 and 3 only
c. 1 to 4 any d. none of the above

4. Who among the following can Stop Payment of a Bank Draft once it reaches the payee:
a. the issuing branch
b. the drawee branch
c. the purchaser of the draft
d. the purchaser with consent of the issuing branch
e. None of the above

5. The Bank Draft can be issued by accepting cash provided the amount is less than Rs. ___ :
a. Rs. 20000
b. Rs.30000
c. Rs.50000
d. Rs.75000
e. Rs.100000

CIBM, Manipal-Multiple Choice Questions – 2020 24

6. X purchased draft in favour of UPSC and after some time he approached the Bank for
cancellation. The draft bears endorsement of the payee also.
a. The bank will accept the request
b. The bank will not accept the request because it bears payees endorsement. Unless he presents
a letter from payee for release, it cannot be cancelled.
c. The bank will refer the matter to the court
d. None of the above

7. A draft presented for payment through clearing is unsigned. The bank:

a. Should not pay as it is not an operative instrument at all
b. Will not pay the draft as it is not an operative instrument
c. may pay after confirmation of its genuineness.
d. Bank has no option except to pay

8. Bank drafts are issued by banks payable to order only and not payable to bearer:
a. due to restriction imposed by Govt.
b. because that would be risk prone
c. as per provisions of Section 31 RBI Act
d. as per directive of Banking Regulation Act

KEY:
1 b 2 a 3 d 4 e
5 c 6 b 7 d 8 c

(f) RESERVE BANK OF INDIA ACT-1934& B R ACT-1949:

1. U/S 49 of RBI Act, which of the following is done by RBI:

a. Announces Bank rate
b. Publishes fortnightly statement of assets and liabilities.
c. Prepares Annual balance sheet
d. None

2. What is meant by scheduled Bank:

a. The Bank under BR Act 1949.
b. A Bank included in 2nd schedule of RBI Act
c. The Bank under Banking Company Act 1956
d. None

CIBM, Manipal-Multiple Choice Questions – 2020 25

3. Section 35A ,Banking Regulation Act 1949 empowers RBI of the followings.
a. To impose selective credit control
b. To impose penalty on a Bank.
c. To issue directions in public interest.
d. None

4. The annual return of unclaimed deposit u/s 26 of Banking Regulation Act should be submitted to
RBI within the following days after close of the calendar year.
a. 15 Days.
b. 23 Days
c.30 Days
d. 45 days.

5. What is the minimum value of stock of gold coins, which RBI has to maintain at any point of
time?
a. Rs.200 Cr
b. Rs.215 Cr
c. Rs.115 Cr
d. Rs.500 Cr
e. Rs.1000 Cr

6.No person in India other than RBI or Central Govt. can draw, accept, make or issue any bill of
exchange or promissory note for the payment of money payable to bearer on demand. This is
as per provision of:
a. Section 31Banking Regulation Act
b. Section 31 of Negotiable Instrument Act
c. Section 31 of RBI Act
d. Section 35 Banking Regulation Act

7.DSB returns sent to RBI by banks are part of:

a. Basel II Implementation b. On site supervision
c. market discipline under Basel II d. Off- site supervision
e. Concerned bank maintaining the chest

8. Banks disclose the information about their borrowers to RBI under provisions of:
a. Directives of RBI
b. Section 45-C, RBI Act
c. Section 45 of Banking Regulation Act
d. Directions of Finance Ministry

9.What is the highest denomination bank note that RBI can issue per provisions of RBI Act:
a. Rs.1000
b. Rs.2000
c. Rs.5000
d. Rs.10000

CIBM, Manipal-Multiple Choice Questions – 2020 26

10.Banks are required to preserve the old records. The rules regarding preservation are framed of
Central Govt., as per section 45Y of which of the following Act?
a. Indian Evidence Act b. Limitation Act
c. Banking Regulation Act d. RBI Act
e. Negotiable Instrument Act 1881

11.Under Section 5(a) of the Banking Regulation Act 1949, approved securities denote:
a. Securities approved by Indian Banks Association
b. Securities defined under Section 20 of the Indian Trusts Act 1882
c. The Securities approved by IDBI

12.As per Section 17 of Banking Regulation Act 1949,31.03.2001, every Banking Company
incorporated in India is required to create a reserve fund and to transfer to it at least:
a.50% of profits after dividend b.25% of profit before dividend
c.15% of total profit d.20% of total profits

13.On the basis of powers drawn mainly in which of the following Acts, RBI regulates and controls
the banks in India?
a. Banking Regulation Act and RBI Act
b. RBI Act and Companies Act
c. Banking Regulation Act and Companies Act
d. Banking Regulation Act, RBI Act and Negotiable Instruments Act

14. Banks have been prohibited to staple bank notes by RBI by issuing strict directives for
implementation. Under which of the following, these directives have been issued?
a. Section 35 A of Indian Currency Act
b. Section 35 -A : Negotiable Instrument Act
c. Section 35 A of Banking Regulation Act
d. Section 35 A of Reserve Bank of India Act

KEY:
1 2 3 4 5 6
a b c c c c
7 8 9 10 11 12
d b d c b b
13 14
a c

CIBM, Manipal-Multiple Choice Questions – 2020 27

 DEPOSITS

1. How many members can join in SB account?

a. Max 6 members b. 5 members in addition to original
account holder c. Max 4 members d. Any number can join

2. At what age minor student can open self operated SB accounts ?

a. Above 15 years b. Above 8 years c. Above 18 years d. Above 10
years

3. What is the Rate of Interest offered to SB account deposits less than Rs. 50 lakhs?
a. Up to Rs.50 lakhs at 2.9 %
b. less than Rs.50 lakhs at 2.90 %
c. At 3.00% irrespective of balance
d. None of the above

4. What is the periodicity and date of payment of interest on SB accounts ?

a. Half yearly on 1st Feb and 1st Nov b. Quarterly on 1st of Jan , Mar, June, Sept
c.10th of every Calendar Quarters d. On 1st of every Feb, May, Aug and Nov

5. Interest computation on SB account deposits is done on

a. The minimum balance from 10th to Last day of the month. b. On daily product basis
c. Average balance during the month d. Balance as on Last day of the
month

6. What is the minimum amount of Cash Deposit/Cash withdrawal from Savings bank Account?
a. Rs.50/- b. 100/- c. 10/- d. any amount

7. What is the discretionary power for allowing TOD in SB/CA ,to Scale II In charge Manager of
Semi Urban Branch?
a. Rs.10000/- can be granted b. No powers to sanction TOD in
SB/CA
c. Can be granted, but the same is to be ratified by RO d. Rs.50000/- can be granted.

8. Monthly average minimum balance requiredfor General SB A/c (101) in Semi-urban area is ?
a. Rs. 500/- b. Rs. 1000/- c. Rs. 100 d. Rs. 3000/-

9. Minimum balance condition is not applicable to following

a. Staff SB account b. Pensioners drawing pension through our Bank
c. Canara Defence Service Account (Prod 130) d. All the above

CIBM, Manipal-Multiple Choice Questions – 2020 28

10. What is Canara Jeevan Dhara (product 110) meant for
a. A Savings Bank account targeting the Senior Citizens
b. A Savings Bank account targeting the Generation Next
c. A Current Account targeting the LIC employees
d. SB Account coupled with LIC Jeevan Surakha Policy

11. TODupto ______ofmonthly pensiononrequestafter ______fromlastpensioncreditinSBAccounts

ispermittedto PensionersreceivingpensionthroughourBankunderCanaraJeevandharaSBAccount.
a. 25 % , 15 dyas.
b. 50% , 15 days
c. 75%, 10 days
d. no TOD permitted

12. Maximum no of free cheque leaves in SB account in a calendar year is ____.

a. 20 b. 50 c.100 d. no limit for free cheques in SB A/c

13. Sri J Singh approaches you to open a savings bank account in the name of his grandson whose
age is 12 years under his guardianship. Which among the following precautions will be taken by
the bank?
a. bank should obtain proper introduction and photograph while opening the account
b. declaration should be obtained that all operations will be done for benefit of minor
c. date of birth certificate of the minor should be obtained
d. account cannot be opened as the grandfather cannot become natural guardian, so long the
father is alive

14. Which of the following kinds of deposits are not insured under DICGC scheme:
a. Inter bank deposits b. Deposits from government
c. Deposits of State Land Dev Banks with State Coop Banks d. All the above

15. Deposit Insurance cover upto ________ is available in respect of amount due to a depositor
under DICGC Scheme
a. Rs. 1 lac b. Rs. 2 lac c. Rs. 5 lac d. Rs. 10 lac

16. A saving bank account or a current account is to be treated as inoperative accounts if there is
no operation in the account for the last:
a. 2 years b. 3 years c. 4 years d. 5 years

17. Ifthe number of withdrawals/Debit Entries (excluding AlternateChannels)exceeds______perhalf-

year,eitherbychequesorotherwise,chargesatRs.______perDebittobecollected.(FebtoJulyand
AugtoJan).
a. 50 , 10/- , b. 50, 15/- c. 20, 10/- d. 20, 15/-

CIBM, Manipal-Multiple Choice Questions – 2020 29

18. Mr. Dharmesh, a customer of your branch informs you that Mr. Ramesh Kumar, another
customer has snatched Rs.25000/ from him and deposited in his account.
a. By debiting account of Ramesh, amount would be paid to Dharmesh
b. Advise him that bank cannot take any action on his complaint
c. Guide him to lodge a complaint with the police and if necessary, bank will provide a certificate
that the amount has been deposited
d. Since amount belongs to Dharmesh, the balance would be earmarked.

19. In case any loan is granted against the Term deposits in minor’s name accepted with mother as
guardian for meeting necessities of the child , the loan papers should be signed by
a. By mother b. By father along with mother c. By father or mother d. By father

20. Product code for SB Power Plus is_____.

a. 130 b. 131 c 132 d 136

21. Who can open and operate the bank accounts in respect of persons with autism , Cerebral
palsy , Mental retardation and multiple disabilities
a. Testamentary Guardian
b. Court appointed guardian
c. The person to whom Guardianship Certificate is issued either by the District Court under Mental
Health Act or by the Local committee under National Trust Act 1999
d. Natural Guardian

22. What should be the repayment condition in respect of a deposit in the joint name of a literate
and an illiterate. Parties insist that it should be made payable to any one of them. What will be
repayment condition bank will be stipulating ?
a. Payable to illiterate depositor or survivors
b. Either or Survivor
c. Payable to literate or survivor
d. Any of the above

23. In Recurring deposit accounts, the installments are paid:

a. In the beginning of the month
b. Any time between first and last date of the month
c. Any time between first and tenth date of the month
d. On the last date of the month]

24. 5 basic minimum facilities, free of charge and without requirement of minimum balance, to be
offered in the BSBD a/c, which is not correct
a. deposit of cash at bank branch as well as ATMs/CDMs deposit
b. receipt of money through any electronic channel or by means of deposit of cheques drawn by
central/state govt agencies and department
c. No limit on number and value of deposits that can be made in a month
d. Minimum of Six withdrawals in a month, including ATM withdrawals
e. ATM Card or ATM-cum-Debit Card
a. i b. ii c. iii. d. iv

CIBM, Manipal-Multiple Choice Questions – 2020 30

25. A customer of your branch wants to secure his loan by way of an FDR issued by another bank
in your town. What procedure you would follow?
a. It should be accepted as security
b. It should not be taken as security for advancing the loan as per RBI directives
c. If customer is valued customer it should be taken
d. RBI’s special permission is required

26. A term deposit has matured on May 31, being Sunday. The payment of the deposit would be
made by the bank on-------------with interest rate
a. Saturday, at contracted rate
b. Saturday,at contracted up to Sunday
c. Monday, at contracted rate till Sunday and at saving bank rate for Monday
d. Monday ,at contracted rate

27. Canara Small Savings Bank deposit the aggregateofallwithdrawalsandtransfersinamonth

shouldnotexceed _________.
a. Rs. 5000/- b. Rs. 10000/- c. Rs. 15000/- d. Rs. 50000/-

28. Pensioners can open joint SB accounts with

a. their sons/daughters b. their spouses
c. any of their close relatives d. cannot open joint account

29. The ‘undertaking letter’(NF 173) obtained from the pensioner at the time of commencement
of pension/family pension is meant for
a. pensioner will visit the branch whenever called for
b. pensioner will submit annual Life Certificate in time
c. bank can recover the excess amount of pension, if any, credited to pensioner
d. pensioner will not leave country without intimation to bank

30. RBI has prescribed 5 basic minimum facilities, free of charge, to be made available to BSBD
account holders. Which one is not one of such facilities?
a. credit card
b. ATM Card or ATM-cum-Debit Card
c. Deposit of cash at bank branch as well as ATMs/CDMs
d. No limit on number and value of deposits that can be made in a month

31. Savings Bank account of prisoners can be opened under Product Code
a. Basic Savings Bank Deposit Account (108)
b. Small Savings Bank Deposit Account (127)
c. NSIGSE Savings Bank Account (128)
d. Product Code-101

CIBM, Manipal-Multiple Choice Questions – 2020 31

32. Quarterly average balance required to be maintained in Canara SB PowerPlus is
a. Rs. 50,000 and above
b. Rs.100,000 and above
c. Rs. 150,000 and above
d. Rs.200,000 and above

33. All employees of a firm / company with minimum ___ employees, with standing over___
year/s are eligible to open account under Canara payroll Package scheme
a. 10, 5 b. 20, 2 c. 25, 3 d. 25, 1

34. Which one in not correct in case of Canara Junior Savings account?
a. opened under product code - 121
b. foreign remittance not permitted
c. Declaraon to be obtained from parent / guardian
d. Balance in the account not to exceed 50000 at any point of time

35. As per modified RBI policy, which one of the following cannot verify OVDs of NRI/PIO
a. Indian Embassy/Consulate General in the country where the non-resident customer resides
b. Notary Public abroad
c. Official of any overseas bank
d. Court Magistrate

36. Wherever withdrawal by bearer from SB account exceeds ___, identity of the payee should be
established by obtaining suitable KYC documents.
a. Rs.10,000 and above b. Rs.25,000 and above
c. Rs.50,000 and above d. Rs.100,000 and above

37. Definition of Bulk Deposits has changed as

a. Rs.1 Cr and above b. Rs.2 Cr and above c. Rs. 5 Cr and above d. Rs.10 Cr and above

38. Preferential ROI given to ex-employees cum Senior Citizen on Canara Tax Saver Deposit
a. 0.5% b. 1% c.1.5% d. no preferential interest

39. How many nominees (maximum) can be accepted under Capital Gains Account scheme ?
a. No nominee b. 1 c. 2 d. 3

40. In SB Canara Champ Deposit scheme minimum ___credits in a half year, aggregating ____in
Rural/Semi-Urban and _______in Urban/Metroexcludinginteresthavetobemade.
a. 2, Rs. 1000/-, Rs. 2000/- b. 4, Rs.500/- , Rs. 1000/-
c. 2, Rs. 500/-, Rs. 1000/- d. 4, Rs. 1000/-, Rs. 2000/-

41. In SB Canara Champ Transferofbalance,intheaccount,inexcessof _ _ _ _ _ _ for, Sweep in/Sweep

out, opening KamadhenuDepositupon the requestoftheaccountholder ispermitted
a) Rs. 5000/- b) 10000/-
c) Rs. 15000/- d) Not permitted

CIBM, Manipal-Multiple Choice Questions – 2020 32

42. Pensioner maintaining Jeevan Dhara a/c can avail loan under Canara Pension scheme maximum
up to_____ times of monthly pension ,max Rs.____
a) 18, 10 lakhs b) 18, 5 lakhs
c) 15, 3 lakhs d) 15, 5 lakhs

43. Product code for Canara SB POWER PLUS NRE a/c is _____

a) 132 b) 133 c) 134 d) 136

44. A SB account in the names of Sudhir and Samir is opened with operation condition “Former or
Survivor”. Samir wants to change the operation condition “E or S”
a) Bank can change condition as above on basis of Samir’s letter to the effect
b) Such request letter need to be signed by both of them for bank to change
c) Bank cannot change the condition by letter only
d) Account to be closed and fresh account to be opened with such condition

45. SB CANARA CHAMP account can be opened for children up to the age of
a) 8 years b) 10 years c)12 years d) 9 years

46. CANARA NATIONAL SCHEME OF INCENTIVE TO GIRLS FOR SECONDARY EDUCATION SAVINGS
BANK DEPOSIT ACCOUNT (NSIGSE) can not be opened by
a) All SC/ST girls who pass class VIII
b) Students enrolled in schools run by Central Government
c) Girls who pass class VIII examination from Kasturba Gandhi Balika Vidyalayas
d) Any girl student irrespective of SC/ST passing Class VIII from Kasturba

47. Bank is going to settle a claim in favour of a nominee, i.e., son of the deceased depositor. On
the day of settling of claim, the deceased’s wife claimed, in person, 50% of the amount to be
settled.
a) Bank can settle the claim equally between the 2 legal heirs of the deceased
b) Bank can stop settlement of the claim in favour of the nominee based on the advocate’s letter
fromthe deceased’s wife
c) Bank can settle claim in favour of the nominee only
d) Bank can first credit the settlement amount to the nominee’s account, and then transfer the
50% amount to the other legal heir’s account, so that bank is not blamed later.

48. Total Debit Transaction limit per month in Canara Junior Saving Account is _____including
maximum monthly withdrawal limit by using Debit Cardis _______ and total Credit in such
accounts should not exceed Rs._________ per annum
a. Rs, 5000, Rs. 5000 , 50000 b. Rs. 10000, Rs. 5000/- , 100000
c. 15000, Rs. 10000/-, 100000 d. Rs. 20000, Rs. 10000, 200000

49. In recently introduced Doorstep Banking , following type of a/c holder are eligible, which is not
correct
a. SB, CA -Individual a/c b. SB- Joint a/c with E or S
c. CA, OD- Proprietorship account d.CA,OD- Partnership

CIBM, Manipal-Multiple Choice Questions – 2020 33

50. Which of the option is correct regarding Canara Privilege Current account
a. Quarterly aver age balance of Rs.1lacandabove.
b. Name printed cheque books up to 300 cheque leaves per annul misused free
c. Account closed before one year 1000 penalty+ service charges
d. Quarterly aver age balance of Rs.500000 and above.

51. Scale IV and above can permit TOD up to Rs.____upon satisfactory dealings for 6months.
a. 5000 b. 10000 c. 25000 d. 50000

52. Which of the option is not correct regarding call deposit

a. Call deposit sare those which are payable ondem and.
b. NO cheque book and No interest payable.
c. Treated as Current Accounts as per the norms of RBI.
d. Max loans against Call Deposits is restricted up to 75% of outstanding.

Q. 53. “TAB Banking” which option is not correct?

a. Instant Saving Account Opening for Prospective Individual Customers through Tablet
without visiting the Branch.
b.Banking at Customer’s Doorstep Now
c. Online authentication of AML Checks, Aadhar Details and PAN details
d. Customer can open his/her Saving account by self using his own tab any time as per his
convenient .

Q. 54. “TAB Banking” which option is not correct?

a. Personalized cheque book will be indented automatically
b. Instant activation of Internet, Mobile Banking and Debit Cards.
c. Marketing Officer will facilitate opening of account by visiting customer’s place
d. Welcome Kit will be delivered to customer’s postal address after opening of account through
TAB.

Q. 55. Regarding Opening of Saving Bank A/c of a SHG, which is not correct
a. CDD of all members of SHG required b. CDD of office bearers only required
c. No separate CDD of the members or office bearers shall be necessary at the time of credit
linking of SHG
d. All are correct

CIBM, Manipal-Multiple Choice Questions – 2020 34

 ANSWER KEY

1 D 2 D 3 B 4 D 5 B

6 C 7 B 8 B 9 D 10 A

11 B 12 A 13 D 14 D 15 C

16 A 17 A 18 B 19 B 20 C
21 C 22 A 23 B 24 D 25 B
26 D 27 B 28 B 29 C 30 A
31 B 32 B 33 D 34 A 35 C
36 A 37 B 38 B 39 D 40 C
41 C 42 A 43 B 44 B 45 C
46 B 47 C 48 B 49 D 50 A

51 B 52 D 53 D 54 D 55 A

CIBM, Manipal-Multiple Choice Questions – 2020 35

 FINANCIAL INCLUSION
1. Banking services under Financial inclusion consists of: Savings facility,Micro
Credit, Micro Remittance, Transactions, ….…………… and ---------------
a. Micro insurance and Pension Payment
b. Pension payment and Financial literacy
c. Credit guarantee and Microinsurance
d. Financial literacy and Creditguarantee

2. The account holders ofBSBD AccountwillbeprovidedwithRuPaydebitcard with accident insurance

coverage of…………
a.Rs. 25000 b.Rs.50000 c. Rs.1.50lakhs d. Rs.2.0lakh

3. The new model of Business Correspondent in our Bank iscalled

a. Integra MicrosystemModel b. BCA Model
c.BCO Model d. Hybrid Model

4. To get a fixed remuneration of Rs.5000 per month the BusinessCorrespondent should

domorethan transactions.
a.100 b.200 c.250 d. 50

5. BCAgents are eligible for an amount offees/remunerationofRs……..foropeningofa

SavingsBankaccountthroughNone-KYC
a.Rs.10 b.Rs.15 c.Rs.20 d.Rs.25

6. The Financial Literacy centre and rural branches of the banks to conductoutdoor financial
literacy camps at least----------------
a. Once inamonth b. Twice in amonth
c. Twice inaquarter d. Once in aquarter

7. Personalized PMJDY RuPay Debit Cards are not facilitated with GREEN PIN because ………
a. Cards are not linked to CBS intentionally due to security reasons
b. Not eligible for personalized cards
c. No minimum balance in the account
d. No Service Charges collected for PMJDY accounts

8. Pradhan Mantri Jeevan Jyothi Bima Yojanais administered through

a. M/s Integra microsystems
b. M/s FINO Paytecltd
c. Life insurance Corporation ofIndia
d. Canara HSBC OBC Life InsuranceCompany.

CIBM, Manipal-Multiple Choice Questions – 2020 36

9. Saving bank account holders, within the age group of-----to ------------------ are eligibleto
avail cover under PMJJBY:
a. 21 to50years b. 18 to 55 years
c. 18 to 50years d. None of theabove

10. Benefits of PMJJBY insurance Scheme offers life cover for death for an amount of………
a. Rs.5lakhs b. Rs.2 lakhs c.Rs.1lakh d. Rs.1.50lakhs

11. In respect of Atal Pension Yojana the central Govt contributes …………..
of subscriber’s contribution or Rs …………….whichever is lower to each subscriber.
a. 50%,Rs.1000/- b. 50% , Rs.2000/-
c. 50%,Rs5000/- d. 50% Rs10000

12. After 28.8.2018, the focus of Financial Inclusion changed from opening of accountsfrom……….
to………..
a. villages having population >2000 to villages having population<2000
b. every house hold to every adult
c. villages having population <2000 to every household
d. There was no change

13. What is the amount of reimbursement for each account (covered under
insurance) as administrative expenses to Bank in PMJJBY
a.Rs.9 b.Rs11 c.Rs.12 d.Rs.13.

14. Under PMJJBY, "CHOICe" shall process the claim and disburse the money within from the
receipt of the claims from Circle Office provided all claim papers are in order.
a. 3weeks b.4 weeks c.30days d. 45days

15. PMSBY covers the SB account holders of our bank in the age group of
a. 18 to70years b. 18 to 55years
c. 21 to70 years d. 21 to 55years

16. Irrespective of the date of enrolment under PMJJBY/PMSBY Scheme the renewal will fall
due on or before …………….
a. 1st July of sub sequent year b. 1st June of sub sequent year
c. 1st May of sub sequent year d. None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 37

17. The benefit of PMSBY in case of death is Rs ---------------- and the total irrecoverable
loss of one eye or loss of use of one hand or one foot is --------------
a. Rs 2.00 lakhs and Rs 1.00Lakhs
b. Rs 1.00 Lakhs and Rs 1.50lakhs
c. Rs 1.00 Lakhs and Rs. 0.75lakhs
d. Rs 1.50 Lakhs and Rs. 0.75lakhs

18. The premium amount payable for covering under PMSBYis………………..

a. Rs 11/-perannum. b. Rs 12/- perannum.
c. Rs 13/-perannum. d. Rs 330/- perannum.

19. Under PMSBY, within …………. the nominee of the insured should givenotice
to the bank regarding accident / death of the insured customer:
a. 1Month b.3 Weeks c.30days d. 60 days

20. For lodging the claims under PMSBY, all papers should be submitted within------
------ from the date of accident:
a. 60days b.30days c.3weeks d. None of theabove

21. Maximum transaction through BC (including deposit & withdrawal) per customer on a
particular day is for AEPS and for Non – AEPS transactions.
a. Rs.10000&5000 b. Rs.5000 &5000
c. Rs.5000&2000 d. Rs.20000 &10000

22. APY – Atal Pension Yojanais administered by:

a. Pension Fund Regulatory Authority
b. Atal Pension fund Regulatory Authority
c. Pension Fund Regulatory Development Authority
d. Central Pension & development authority

23. Minimum and maximum age for Atal Pension Yojanais:

a.21 and45 years b.21 and 40years
c.18 and40years d.18 and 45years

24. Minimum contribution period for AtalPension Yojanais……………………..:

a.10years b.15years c. 20years d. 25years

CIBM, Manipal-Multiple Choice Questions – 2020 38

25. Pension payment in Atal Pension Yojana commences at the age of…………….:
a. 60years b.58years c.55years d. 62years

26. Under Atal Pension Yojana, Fixed monthly pension per month for the subscribers ranges
from Rs…………………to Rs…………….
a. Rs 900/- to Rs 2500/
b. Rs 1000/- to Rs 5000/-
c. Rs 1000/- to Rs 3000/-
d. Rs 2000/- to Rs 5000/-

27. Our bank has outsourced operators in Aadhaar Seva Kendras established at identified branches
of our Bank to…..
a. M/S Integra
b. M/s TATA tech . solutions
c. not outsourced
d. M/s. Can bank Computer Services Limited

28. A customer wishes to join PMJJBY on April 19, the premium he has to pay at the time of
enrolment is.......................... plus ST
a. Rs.12
b. Rs.330
c. Rs.86
d. cannot be enrolled at the mid of the annual coverage

ANSWER KEY –
1 a 8 d 15 a 22 c
2 d 9 c 16 b 23 c
3 d 10 b 17 a 24 c
4 b 11 a 18 b 25 a
5 b 12 b 19 c 26 b
6 a 13 b 20 a 27 d
7 a 14 c 21 a 28 c

CIBM, Manipal-Multiple Choice Questions – 2020 39

 PRIORITY SECTOR ADVANCES CLASSIFICATION
Q1) Revised Priority Sector Guidelines Issued By RBI Vide Their Circular dated 4th
September 2020 And The Revised Guidelines and are operational w.e.f________
(a) 04.09.2020.
(b) 23.09.2020
(c) 22.10.2020
(d) 01.09.2020

Q2) The Cumulative target for priority sector lending, is ____ per cent of Adjusted Net
Bank Credit (ANBC)or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE)
(a) 48 %
(b) 60%
(c) 40%
(d) 50%

Q3) The mandated target of Small and Marginal farmers is modified to ___ from of
Adjusted Net Bank Credit (ANBC)from the existing level of ____ ofAdjusted Net Bank
Credit (ANBC).
(a) 7%; 8 %
(b) 8 %; 6%
(c) 9%; 6%
(d) 10%; 8%

Q4) The mandated target of weaker sections is increased to ____of Adjusted Net Bank
Credit (ANBC) from the existing level of ____ofAdjusted Net Bank Credit (ANBC).
(a) 12%;10 %
(b) 12%; 8%
(c) 11%; 9%
(d) 12%; 8%

Q5) Loan limits for Renewable Energy have been increased to _____ Crore from the
existing limit of ____Crore.
(a) Rs35 Crore,Rs15 Crore
(b) Rs20 Crore,Rs15 Crore
(c) Rs15 Crore,Rs10 Crore
(d) Rs30 Crore,Rs15 Crore

CIBM, Manipal-Multiple Choice Questions – 2020 40

Q6) Loans up to ___ Crore per borrowing entity to FPOs/FPCs undertaking farming with
assured marketing of their produce at a pre-determined price is classified under
Priority Sector, i.e. Agriculture Farm Credit.
(a) Rs 10 Crore
(b) Rs5 Crore
(c) Rs25 Crore;
(d) Rs30 Crore

Q7) Loans up to ____Crore to Start-ups, as per definition of Ministry of Commerce and

Industry, Govt. of India that are engaged in Agriculture and Allied Services, confirm to
the definition of MSME and are also engaged in activities other than Agriculture or
MSME will be classified under PrioritySector.
(a) Rs25 Crore
(b) Rs30 Crore
(c) Rs40 Crore;
(d) Rs50 Crore

Q8) Loans up to ________to Start-upsas per definition of Ministry of Commerce and

Industry, Govt. of India, that confirm to the definition of MSME, are eligible
tobeclassified under Priority Sector.
(a) Rs25 Crore
(b) Rs30 Crore
(c) Rs40 Crore
(d) Rs50 Crore

Q9)Under Social Infrastructure, lending loans up to a limit of Rs_____ per borrower for
building health care facilities including under ‘Ayushman Bharat’ in Tier II to Tier VI
Centers is now classified under Prioritysector.
(a) Rs05 Crore
(b) Rs10 Crore
(c) Rs15 Crore;
(d) Rs20 Crore

Q10) Loans to individuals for educational purposes, including vocational courses, not
exceeding ______will be considered as eligible for Priority SectorClassification.
(a) Rs05 Lakhs
(b) Rs10 Lakhs
(c) Rs20 Lakhs
(d) Rs25 Lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 41

Q11) Housing Loans up to ______in metropolitan centres and up to ______in other
centers for repairs to damaged dwelling units, conforming to the overall cost of the
dwelling unit will be considered as eligible for Priority SectorClassification.
(a) Rs12 Lakhs;Rs 06 Lakhs
(b) Rs12 Lakhs;Rs08 Lakhs
(c) Rs10 Lakhs;Rs08 Lakhs
(d) Rs10 Lakhs; Rs6 Lakhs

Q12) with in the ----% target for total agriculture, a target of ______percent is prescribed for
Small and Marginal farmers.
(a) 18%;10 %
(b) 12%;10%
(c) 11%;9%
(d) 12%;8%

Q13) For priority sector classification the quantum of Loans to individuals for educational
purposes, including vocational courses, is enhanced from ______to ______Lakhs
(a) Rs12 Lakhs;Rs 20 Lakhs
(b) Rs10 Lakhs;Rs18 Lakhs
(c) Rs10 Lakhs;Rs20 Lakhs
(d) Rs12 Lakhs Rs18 Lakhs

Q14) Bank loans up to a limit of ______Crore to borrowers for purposes like solar based
power generators, biomass-based power generators etc. and other non- conventional
energy based public utilities, viz., street lighting systems and remote village
electrification etc., are eligible for Priority Sector Classification.
(a) Rs25 Crore
(b) Rs30 Crore
(c) Rs15 Crore;
(d) Rs10 Crore

Q15) For individual households, the loan limit is ______ per borrower for purposes like
solar based power generators, biomass-based power generators etc. and other non-
conventional energy based public utilities, viz., street lighting systems and remote
village electrification etc., are eligible for Priority Sector Classification
(a) Rs25 Lakhs
(b) Rs20 Lakhs
(c) Rs15 Lakhs
(d) Rs10 Lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 42

Q16) Loans not exceeding ______per borrower provided directly by banks to individuals
and individual members of SHG/JLG, provided the individual borrower’s household
annual income in rural areas does not exceed ______and for non-rural areas it does
not exceed Rs 1.60lakhs are eligible for Priority Sector Classification
(a) Rs2.5 Lakhs
(b) Rs2 Lakhs
(c) Rs1.5 Lakhs
(d) Rs1 Lakh , Rs1 Lakh

Q17) Loans not exceeding ______provided directly by banks to SHG/JLG for activities
other than agriculture or MSME, viz., loans for meeting social needs, construction or
repair of house, construction of toilets or any viablecommon activity started by the
SHGs are eligible for Priority Sector Classification.
(a) Rs2.5 Lakhs
(b) Rs2 Lakhs
(c) Rs1.5 Lakhs
(d) Rs1 Lakhs

Q18)Loansup to______to individuals solely engaged in allied activities without any

accompanying land holding criterion is included under Small and Marginal Farmers
Sub targets for Priority Sector Classification.
(a) Rs2.5 Lakhs
(b) Rs2 Lakhs
(c) Rs1.5 Lakhs
(d) Rs1 Lakhs

Q19) Loans up to ______per borrowing entity to FPOs/FPCs undertaking farming with

assured marketing of their produce at a pre-determined price.
(a) Rs5 Crore
(b) Rs 10 Crore
(c) Rs 15 Crore
(d) Rs 20 Crore

Q20) Loans up to ______to Start-ups, as per definition of Ministry of Commerce and

Industry, Govt. of India that are engaged in agriculture and allied services, are eligible
to be classified under Priority Sector.
(a) Rs 15 Crore
(b) Rs 25 Crore
(c) Rs50 Crore;
(d) Rs100 Crore

CIBM, Manipal-Multiple Choice Questions – 2020 43

Q21) Loans for Agriculture Infrastructure will be subject to an aggregate sanctioned limit
of ______ per borrower from the banking system.
(a) Rs 25 Crore
(b) Rs 50 Crore
(c) Rs 75 Crore;
(d) Rs 100 Crore

Q22) For the purpose of computation of achievement of targets and sub targets in
Priority Sector Lending sub-target, Farmers with landholding of up to 1 hectare are
considered to be
(a) Small Farmers
(b) Marginal Farmers
(c) Medium Farmers
(d) Tenant Farmers

Q23) For the purpose of computation of achievement of targets and sub targets in
Priority Sector lending sub-target, Farmers with landholding of more than 1 hectare to
2 hectares are considered to be___
(a) Small Farmers
(b) Marginal Farmers
(c) Medium Farmers
(d) Large Farmers

Q24)Solar units for individual households upto a limit of __________ is treated as priority
Sector
(a) Rs 5 lakhs
(b) Rs 10 lakhs
(c) Rs 15 lakhs
(d) Rs 20 lakhs

Q25) The mandated sub target for weaker sections for the financial year 2020-21is
_________% per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-
Balance Sheet Exposures (CEOBE) whichever is higher
(a) 7.5%
(b) 8%
(c) 9%
(d) 10%

CIBM, Manipal-Multiple Choice Questions – 2020 44

Q26) Lending by banks to NBFCs with Registered NBFCs and MFIs for on-lending under
‘Term lending’ component under Agriculture will be allowed up to ______per
borrower Valid up to 31.03.2021.
(a) Rs 25 Lakh
(b) Rs 10 Lakh
(c) Rs 15 Lakh
(d) Rs 100 Lakh

Q27) Lending by banks to NBFCs with Registered NBFCs and MFIs for on-lending under
‘Micro& Small enterprises ‘will be allowed up to ______per borrower Valid up to
31.03.2021.
(a) Rs 25 Lakh
(b) Rs 20 Lakhs
(c) Rs 15 Lakh
(d) Rs 100 Lakh

Q28) The mandated sub target for micro enterprises is _________% per cent of Adjusted
Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE)
whichever is higher.
(a) 7.5%
(b) 8%
(c) 9%
(d) 10%

Q29) All loans to units in the KVI sector will be eligible for classification under the sub-
target of ___ percent prescribed for Micro Enterprises under priority sector.
(a) 7.5%
(b) 8%
(c) 9%
(d) 10%

Q30) HousingLoans to individuals up to ______in metropolitan centres (with population

of ten lakh and above) for purchase/construction of a dwelling unit per family
provided the overall cost of the dwelling unit does not exceed ______can be classified
under priority sector?
(a) Rs 45 Lakh, Rs 50 Lakh
(b) Rs 40Lakh, Rs 40 Lakh
(c) Rs 35 Lakh, Rs 45 Lakh
(d) Rs 35 Lakh, Rs 40 Lakh

CIBM, Manipal-Multiple Choice Questions – 2020 45

Q31) Loans to individuals up to ______in other centers for purchase/construction of a
dwelling unit per family provided the Centres overall cost of the dwelling unit does not
exceed ______can be classified under priority sector.
(a) Rs 35 Lakh, Rs 30 Lakh
(b) Rs 25 Lakh, Rs 30 Lakh
(c) Rs 35 Lakh, Rs 40 Lakh
(d) Rs 25 Lakh, Rs 40 Lakh

Q32) Loans to individual up to ______ in metro politan centers for repairs to damaged
dwelling units conforming to the overall cost of the dwelling unit are eligible for
classification under priority sector. (Cir. 685/2020)
(a) Rs 25 Lakh
(b) Rs 15 Lakh
(c) Rs 10 Lakh
(d) Rs 06 Lakh

Q33) Loans to individuals up to ______ in Centres other than metro politan centres for
repairs to damaged dwelling units conforming to the overall cost of the dwelling unit
are eligible for classification under priority sector.
(a) Rs 25 Lakh,
(b) Rs 15 Lakh,
(c) Rs 10 Lakh,
(d) Rs6 Lakh,

Q34)No loan related and ad-hoc service charges/inspection charges should be levied on
priority sector loans up to _______ ?
(a) Rs 25000/-
(b) Rs 15000/-
(c) Rs 10000/-
(d) Rs 5000/-

Q35) Bank credit to Housing Finance Companies (HFCs), approved by NHB for their
refinance, for on-lending for the purpose of purchase/construction/ reconstruction of
individual dwelling units or for slum clearance and rehabilitation of slum dwellers,
subject to an aggregate loan limit of ____ per borrowerare eligible to be classified
under priority sector?
(a) Rs 25 Lakh
(b) Rs 20 Lakh
(c) Rs 15 Lakh
(d) Rs 10 Lakh

CIBM, Manipal-Multiple Choice Questions – 2020 46

Q36) As per the revised definition of MSMEs as per latest Gazette Notification S.O. 2119
(E) dated June 26, 2020, If the Investment in Plant & Machinery or Equipment does
not exceedOne Crore rupees and turnover does not exceed Five Crores rupees; the
enterprise will be classified as __________?
(a) Micro Enterprise
(b) Small Enterprise
(c) Medium Enterprise
(d) None of the above

Q37) As per the revised definition of MSMEs as per latest Gazette Notification S.O. 2119
(E) dated June 26, 2020, If the Investment in Plant and Machinery or Equipment does
not exceed Ten Crore rupees and turnover does not exceed Fifty Crore rupees; the
enterprise will be classified as __________?
(a) Micro Enterprise
(b) Small Enterprise
(c) Medium Enterprise
(d) None of the above

Q38) As per the revised definition of MSMEs as per latest Gazette Notification S.O. 2119
(E) dated June 26, 2020 ,If the Investment in Plant and Machinery or Equipment does
not exceed Fifty Crore rupees and turnover does not exceed Two Hundred and Fifty
Crore rupees; the enterprise will be classified as __________?
(a) Micro Enterprise
(b) Small Enterprise
(c) Medium Enterprise
(d) None of the above

Q39)Loans to farmers for installation of solar power plants on barren/fallow land or in

stilt fashion on agriculture land owned byfarmer can most appropriately be classified
under the following sub category of Priority sector classification______
(a) Farm Credit
(b) Ancillary Activities
(c) Social Infrastructure
(d) MSME

Q40)Loans to farmers for installation of stand-alone Solar Agriculture Pumps and for
solarisation of grid connected agriculturepumps can most appropriately be classified
under the following sub category of Priority sector classification______
(a) Farm Credit
(b) Ancillary Activities
(c) Social Infrastructure
(d) MSME

CIBM, Manipal-Multiple Choice Questions – 2020 47

Q41) Loans against pledge/hypothecation of agricultural produce (including warehouse
receipt) for a period not exceeding 12 monthssubject to a limit up to Rs50lakh can
most appropriately be classified under the following sub category of Priority sector
classification
(a) Farm Credit
(b) Ancillary Activities
(c) Social Infrastructure
(d) MSME

Q42) Incremental export credit (other than in agriculture and MSME) over corresponding
date of the preceding year, up to 2 per cent of ANBC or CEOBE whichever is higher,
subject to a sanctioned limit of up to ______ perborrower is eligible for being
considered under priority sector
(a) Rs 15 Crore
(b) Rs 20 Crore
(c) Rs 35 Crore;
(d) Rs 40 Crore

Q43)Loans to distressed persons [other than distressed farmers indebted to non-

institutional lenders] not exceeding ______ per borrower to prepay their debt to non-
institutional lenders.
(a) Rs 0.50 Lakh,
(b) Rs 1.00 Lakh,
(c) Rs 1.50 Lakh,
(d) Rs 2.00 Lakh,

Q44) Overdraft availed by PMJDY account holders as per limits and conditions prescribed
by Department of Financial Services, Ministry of Finance from time to time may be
classified under ______ category of Priority Sector advances.
(a) Weaker Sections
(b) Ancillary Activities
(c) Social Infrastructure
(d) MSME

Q45)To ensure continuous flow of credit to priority sector, the compliance of banks will
be monitored on ‘______’ basis.
(a) Monthly
(b) Quarterly
(c) Half Yearly
(d) Annual

CIBM, Manipal-Multiple Choice Questions – 2020 48

Q46) The data on priority sector advances is required to be furnished by banks to FIDD,
Central Office at ______ and ______ as per the reporting format
(a) Monthly, Quarterly
(b) Quarterly, Half Yearly
(c) Quarterly, Annual
(d) Half Yearly, Annual

Q47)As per RBI guidelines on priority sector credit banks: a register/ electronic record
should be maintained by the bank wherein the following information with thereof,
etc. should be recorded. The aforesaid register/electronic record should be reasons
made available to all inspecting agencies
(a) Date of Receipt
(b) Date of Sanction/Rejection
(c) Date of Disbursement
(d) All of the above

Q48) As per RBI guidelines on priority sector credit banks are supposed to provide______
to all priority sector loan applications
(a) Acknowledgement
(b) In-Principle Sanction letter
(c) Credit Information Report
(d) Internal/External Credit Rating

Q49) In case of priority sector loans the rates of interest on bank loans will be as per
directives of _____?
(a) Priority Credit Wing, HO
(b) Department of Regulation (DoR), RBI
(c) Management Committee of the Board (HO)
(d) AEPS Wing HO

Q50)Bank credit to NBFCs (including HFCs) cap on-lending will be allowed up to an overall
limit of ______ of individual bank’s total priority sector as applicable for priority
sector lending .
(a) 2 %
(b) 3%
(c) 5%
(d) 10%

CIBM, Manipal-Multiple Choice Questions – 2020 49

 ANSWERS KEYS
1 2 3 4 5 6 7 8 9 10
A C D A D B D D B C
11 12 13 14 15 16 17 18 19 20
D A C B D D B B A C
21 22 23 24 25 26 27 28 29 30
D B A B D B B A A C
31 32 33 34 35 36 37 38 39 40
B C D A B A B C A A
41 42 43 44 45 46 47 48 49 50
A D B A B C D A B C

CIBM, Manipal-Multiple Choice Questions – 2020 50

 AGRICULTURE
1. Branches headed by Scale 3 and below can finance up to ____km command area & for
financing beyond this distance, the branches have to obtain the permission from the
_____ for branch sanctions.
a. 30 & CO
b. 30 & Regional Office
c. 16 & CO
d. Cannot finance beyond command area.

2. Waiver of bird insurance is permitted if ____ & _____ percentage of the corpus fund
at Borrower level is collected as RD per month (collected for 5 yrs) on working capital
limit/s granted to commercial LAYER & commercial BROILER birds respectively.
a. 10 % & 12%
b. 6 % & 12%
c. 5% & 10% .
d. 6% & 6%

3. Minimum margin for an Estate purchase loan of Rs.50 lakhs is ______________

a. 20-25%
b. 50%
c. 15-25%
d. NIL Margin

4. Margin required for loan Scheme for financing farmers for purchase of lands for
agricultural purposes is
a. 10-15 % b. 20 % c. 15-25 % d. 5-10 %

5. Margin for ALLHV loans for light vehicles is __& for Medium/Heavy vehicles it is ___
a. 15 % & 25 % b. 10 % & 15 % c. 10 % & 25 % d. 15 % & 15 %

6. Margin for second hand ALLHV is _____& for second hand tractor , it is ______
a. 10 % & 15 % b. 15 % & 25 % c. 25 % & 40 % d. 15 % & 40 %

7. In case party is already having a KCCS loan, and total exposure including the
proposed development/ investment loan exceeds Rs.2,00,000/-, security to be
obtained under this situation is______________
a. Hypothecation of crops/ assets created out of our finance.
b. Hypothecation of crops/assets created out of our finance & creation of
charge on landed property
c. Mortgage of land has to be stipulated in addition to hypothecation of crops/assets
created out of our finance.
d. Mortgage of land/ co obligation has to be stipulated in addition
to hypothecation of crops/ assets created out of our finance.

CIBM, Manipal-Multiple Choice Questions – 2020 51

8. In respect of Tractor loans/ power tiller/ Combine harvester/ other farm machineries,
when mortgage of landed property is required to be taken, the value should be at
least ______to the loan amount or security of tangible assets with requisite margin
valued equivalent to the loan amount
a. 125 % b. equal c. 200 % d. 150 %

9. Loan for Deep Sea Fishing vessels, the value of collateral security of immoveable
properties should be at least ---- of the loan amount
a. 200% b. 100 % c. 125 % d. 150 %

10. Mortgage is to be stipulated in respect of which of the followingschemes:

a. Krishi Mitra card
b. Kisan Tatkal
c. Scheme for redemption of debt of farmers from non-institutional sources
d. Loans to Joint farming groups of Bhoomi heena kisan
e. In none of the above

11. Security for a dairy loan above Rs 2.00 lakhs & upto Rs 10.00 lakhs is---
a. To be covered under CGTMSE.
b. Hypothecation of assets/livestocks to be purchased/ financed only.
c. Hypothecation of assets/livestocks to be purchased/financed plus mortgage of
landedproperty where primary activities are under taken.
d. Hyp. of assets/livestocks created out of bank’s finance + Mortgage of land where
primary activities are under taken along with compulsory coverage for credit cover
under CGFMU.

12. Security for poultry finance for loan limit above Rs. 10,00,000 is ---
a. Hypothecation of assets/birds to be purchased/financed along with creation of
charge on landed property.
b. Hypothecation of assets/birds to be purchased/ financed.
c. Hypothecation of assets/birds to be purchased/ financed plus mortgage of landed
property.
d. Hyp. of assets/birds created out of our finance + Mortgage of land along with
compulsory coverage for credit cover under CGFMU

CIBM, Manipal-Multiple Choice Questions – 2020 52

13. While aggregation of loans/liability is to be done for deciding securitynorms, the
liability of the borrower under which of the following need not be taken into
consideration and vice-versa
a. Gold loans
b. Marine Fisheries Loan
c. ALLHV
d. All of the above

14. Loans sanctioned to food & Agro-processing units is classified under Priority Sector
Agriculture- ___________ upto the eligible extent & delegation of powers as
applicable to________ advances to be adhered :
a. Farm credit; Agriculture
b. Ancillary activities, Agriculture
c. Ancillary activities, MSME
d. Agri-Infrastructure; MSME

15. Report from one Credit Information Company (CIC) is required upto Rs. ______ limit
under secured agri-loans & upto Rs._____ limit for unsecured agri-loans
a. 5 Lakhs, 3 Lakhs
b. 3 Lakhs, 2 Lakhs
c. 2 Lakhs, 1 Lakhs
d. 3 Lakhs, 1 Lakh

16. Cut off limit for appraisal of term loan proposals by Agricultural Innovation
Centre (AIC), HO for new customers & existing customers is above—
a. Rs.100 lakhs & Rs. 200 lakhs
b. Rs.50 lakhs & Rs.100 lakhs
c. Rs.150 lakhs & Rs.300 lakhs
d. Rs. 200 lakhs & Rs. 400 lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 53

 17. Obtention of bills, vouchers, receipts, etc., can be waived for development
agricultural loans upto ___ & agricultural loans to allied activities up to limit of______
a. 2,50,000; 1,00,000 respectively
b. 1,00,000; 50,000 respectively
c. 1,50,000; 50,000 respectively
d. 2,00,000 ; 50,000 respectively

18. In respect of KCCS / Canara Kisan OD / Kisan Tatkal / Krishi Mitra / tenant farmers
groups, obtention of bills/vouchers is ---
a. waived upto Rs 50,000
b. waived upto Rs 1,00,000
c. waived only by next higher authority
d. not required irrespective of loan amount

19. Valuation of agricultural lands with structures (like farm house/poultry sheds) to be
taken once in ____years and in case of lands without any structures, once in _____
years.

a. 3 & 5 b. 5 & 8 c. 1 & 3 d. 5 & 10

20. No Due Certificate’ from the individual borrowers (including SHGs & JLGs) in rural
and semi- urban areas for all types of loans is dispensed with for loan limits……….
a. Irrespective of the amount involved (unless stipulated in Govt. Sponsored scheme)
b. Rs.25000
c. Rs.50000
d. Rs.1,00,000

21. In which of the following cases, though CIR is to be mandatorily obtained, respective
sanctioning authority can consider the proposal irrespective of Risk Grade.

a. Renewal of existing facilities

b. Government Sponsored Schemes with aggregate loan quantum up to Rs.2lacks to
borrower;

c. Agri-Loans up to and including Rs. 3.00 Lakh in aggregate to a borrower / individual.

d. All the above a, b & c

CIBM, Manipal-Multiple Choice Questions – 2020 54

22. In case of agricultural loans, copy of appraisal note and sanction memorandum (for
branch sanctions) along with relevant application form to be forwarded to the
reviewing authorities along with details entered in _______ register.
a. NB -140 / PRR 20 D
b. NB -139 / PRR 20 D
c. NB -179/ PRR 20 D
d. NB -140 / PRR 12

23. Coverage of Personal Accident Insurance scheme (PAIS) for KCC card holders (of
amalgamated entity ) is providedby
a. General Insurance Co.
b. LIC
c. Bajaj Allianz GIC Ltd.
d. United India Assurance Co.

24. Which of the following risk is covered by PMFBY: 1) yield losses 2) prevented sowing
losses 3) post harvest losses 4) localized calamities 5) war and nuclear risk

a. 1 to 5 all b. 1 to 4 only c. 1 to 3 only d. 1 only

25. Risk coverage under PAIS for Permanent total disabilityis

a. 1,50,000/- b. 2,00,000/- c. 1,87,500/- d. 1,33,500/-

26. A budget of Rs. .......................- in respect of rural and semi urban branches has been
provided for conducting a minimum .... Extension activities per year.
a. Actual expenses incurred & 2
b. Actual expenses incurred & 4
c. 2500 & 4
d. 5000 & 4

Loan Against Gold Jewellery for Agriculturist

27. Maximum ceiling for agricultural gold loan for crop production purpose is _______ &
for other than crop production, is ________
a. 1 lakhs & 1.5 lakhs
b. 5 lakhs & 10 lakhs
c. 10 lakhs & 20 lakhs
d. 3 lakhs & 3 lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 55

28. In case of Loan against Gold Jewellery for Crop production purpose, Scale of Finance
or ______ of the appraised gold value (Max. LTV), whichever is less to be taken as
loan quantum.

a. 85 % b. 60 % c. only as per net value of gold d. 75%

29. Agriculture Gold loan is granted to meet the following purpose (select most
appropriate option)
a. For meeting expenses for crop production
b. For meeting expenses involved in Land Development activities
c. To meet expenses for carrying out various allied activities
d. All of the above

30. Agriculture Gold Loan is granted against security taken by way of pledge of gold items which
may be listed as following
1. Gold ornaments
2. Gold bullion/ Gold Bar, Primary gold
3. Specially minted gold coins, weight of the Gold coins shall not exceed 50 grams per
customer cumulative of all Gold loans availed.
4. Gold coins provided by renowned jewelers

a. 1 & 2 b. 1 & 3 c. 1, 3 & 4 d. all of the above

31. Minimum amount of loan that can be granted under AL GLOD against Gold Jeweler is
Rs.______
a. 500
b. 1.75 lakhs
c. 5000
d. No such limit

32. In case of AL Gold Overdraft for Crop production Purpose, Scale of Finance or ______
of the gold value (max. LTV), whichever is less to be taken as loan quantum.

a. 85 % b. 60 % c. only as per net value of gold d. 90%

Kisan Credit Cards Scheme (KCCS)

33. Under Revised KCCS, loan limit should not exceed ___of value of the produce

a. 100 % b. 50% c. 200 % d. 125 %

CIBM, Manipal-Multiple Choice Questions – 2020 56

 34 Minimum and maximum loan limit permitted under KCCS
a. Rs. 1000 & Rs. 5,00,000
b. Rs.5000 & Rs.25,00,000

c. No minimum/maximum ceiling stipulated.

d. Rs. 50,000 & no max. Ceiling

34. For short term crop loans interest subvention at the rate of ____ is available from
Govt of India through RBI & additional incentive____ is available where the farmers
make prompt payment of the loans

a. 4%,2% b. 2.5%,2.5% c. 2%,3% d. 1.5%, 1.5 %

35. KCCS facility extended by RBI, cover which of the following activities?
a. fisheries b. poultry c. dairy d. All of the above

36. Maximum sub limit which can be permitted for Repairs and maintenance expenses of
farm assets under revised KCC is______

a. Need based

b. 15% of limit fixed for crop maintenance

c. 20 % of limit fixed for crop maintenance

d. Need based with maximum of 25% of limit fixed for cropmaintenance

37. Term loan component under Revised KCCS to meet present & future investment &
development credit requirement is assessed as—

a. Up to max.5 times the annual net income of the farmer.

b. Up to 3 times the annual net income of the farmer with max of Rs 3.00 lakhs.

c. Need based with no ceiling on max. Limit.

d. Up to 3 times the annual net income of the farmer with maximum of Rs. 5 lakhs.

CIBM, Manipal-Multiple Choice Questions – 2020 57

38. KCCS loan granted for crop production is considered NPA if any drawal / interest
debited to the account remains unpaid for a period of____ from due date
a. 90 days
b. 12 months
c. Two crop seasons in case of short duration crops and one crop season in case of long
duration crops after becoming due.
d. 24 months

39. Personal Accident Insurance (PAIS) to revised KCCS borrower covers farmers up to
age of ___ years, with maximum Sum Assured of _____ (death due to accident) with
annual premium of Rs._____
a. 50, 1,00,000 & 329
b. 70, 150000 & 25
c. 60 , 2,00,000 & 12
d. 40, 50,000 & 15

40. Under KCCS, the marginal farmer can be sanctioned a flexible limit of Rs __ to Rs _____
a. 5000 to 100000
b. 5000 to 50000
c. 10000 to 50000
d. 25000 to 50000

41. In KCC, if there is recovery tieup with sugar mills, banks can consider waiver of collateral
security for loans up to________
a. 5.00 Lakhs b. 3.00 Lakhs c 2.00 Lakhs d. 1.60 Lakhs

42. Security taken for KCCS limit granted to farmer above Rs 2.00 lakhs will be
a. Hypothecation of crops / assets created out of our finance + Mortgage of landed
properties where crop is cultivated
b. Hypothecation of crops / assets created out of our finance + Collateral security of Gold
Jewellery with security value of 100% of the loan amount (value equal to the 5th year
limit)
c. Either a or b
d. Only hypothecation of crops

CIBM, Manipal-Multiple Choice Questions – 2020 58

Canara Kisan OD

43. Under Canara Kisan OD scheme, mortgage of landed property is to be obtained with at
least ____ value of the limit for loan limit of above ____
a. 100 %,Rs.1,00,000
b. 125 %, Rs.1,50,000
c. 200 %, Irrespective of the limit
d. 100 %, Irrespective of the limit

44. Under Canara Kisan OD, maximum sub limit for repayment of genuine Private Debt is
Rs.____

a. 25,000 b. 1,00,000 c. 1,50,000 d. 2,00,000

45. Generally the limit under Canara Kisan OD is subject to max. ____ times of gross annual
income or based on assessment or Rs. 7. 5 lakhs whichever is less

a. 2 b. 3 c. 4 d. 5

46. For Canara Kisan OD scheme,under relaxed norms, maximum limit up to Rs.-
12.50 lakhs can be financed, with ceiling on per acre of land mortgaged Rs.
___ lakhs per acre or ____ times gross annual income or based on assessment whichever is
less subject to a Recovery of 90% and above under the scheme.

a. 1.5, 4 b. 1.00 , 4 c. 1.5, 3 d. 1.00, 3

KCCS Krishi Mitra Card Scheme

47. Maximum limit under Krishi Mitra Card scheme is Rs ____ and loan is ______ limit,
tenable for ___________ years
a. 1,00,000 ; single transaction & 3
b. 50,000; revolving & 5
c. 50000; revolving & 3
d. 50,000; single transation & 5

CIBM, Manipal-Multiple Choice Questions – 2020 59

Kisan Tatkal
48. Minimum & Maximum limit under Kisan Tatkal is Rs._____ & Rs. ____respectively
provided total limit is not more than ___% of KCCS limit & shall not exceed ____% of
estimated annual income of farmer within above ceiling
a. 5000 & 50,000, 50 & 25
b. 1,000 & 50,000 , 50 & 25
c. 5,000 & 50,000, 25 & 50
d. 1000 & 50,000, 25 7 50

Revised Joint Farming Group Of Bhoomi Heen Kisan Scheme

49. Finance under Revised Joint Farming Group of Bhoomi Heen Kisan Scheme can be
for the purpose of______
a. Farm activities
b. Allied/Off farm activities
c. Non Farm activities
d. All of the above

50. Under Revised Joint Farming Group Of Bhoomi Heen Kisan Scheme, for financing
under model ii-JLG as a group, no. of members in the group may be _______ & ceiling
on the quantum of loan is Rs____
a. 5-10 & 5,00,000
b. 4-10 & no ceiling
c. 10-20 & 1,00,000
d. 4-10 & 10,00,000

Self Help Groups

51. For financing SHG under cash credit, no. of members in the group shall be
p r e f e r a b l y _______& tenability is _____years

a. 5-10 & 1 b. 10-15 & 3 c. 10-20 & 5 d. 10-20 & 3

CIBM, Manipal-Multiple Choice Questions – 2020 60

52. For Loans to SHGs, credit information of ________ is to be collected at the time of
credit linkage.
a. authorised reprentatives operating SHG account / Office Bearers
b. From all members of SHG
c. From any 2 members operating SHG account
d. Need not be obtained

‘Custom Hiring Centers’ for purchase of Farm Machineries

53. Loans given to custom hiring centres in agriculture , Ceiling on loan/limit is fixed as a
minimum of _____ Lakhs and a maximum of Rs. _____ Lakhs per borrower
a. 2.00 Lakhs ; 50 lakhs
b. 5.00 Lakhs ; 50 lakhs
c. 2.00 Lakhs ; 100 lakhs
d. 1.00 Lakhs ; 50 lakhs

Farm Develpoment Loans

54. Farm Development loans are generally repayable within ____ to __years.
a. 5-9 b. 9-15 c. 3-5 d. 8-10

54. Under Farm Development loans, expenses can be reimbursed whereever movable
/immovable properties are created within_____months of purchase / creation of
asset
a. 12
b. 6
c. 3
d. 5

Farm Machinery Loans

55. Farmer with minimum land holding of ___irrigated or ____ acres of dry land with
minimum of ___ working hours are eligible for Tractor Loans for purchase of Tractors
above 35 HP.
a. 8 or 16,1200 to 1400
b. 2 or 4, 1200 to 1400
c. 6 or 12 , 500 to 600
d. 6 or 12, 1000 to 1200

CIBM, Manipal-Multiple Choice Questions – 2020 61

56. Minimum land holding criteria for farm machinery loan can be relaxed depending on
the merits of proposal by ----
a. Respective sanctioning authority
b. AGM-CAC of RO
c. DGM-CAC of CO
d. Circle Head

57. For financing Power Tillers (alone/with trailers)/ Trailers alone (for existing Tractors),
the applicant should have at least ____acres of irrigated lands or ____ acres of dry
land & land holding criteria can be relaxed by _______depending on merits .
a. 3, 6 & RO head
b. 2, 4 & RO head
c. 2, 4 & Circle head
d. 2, 4 & DGM, CO

58. Combine harvester proposals can be sanctioned by—

a. Branches headed by CM/AGM

b. RO Head CAC including DM –RO- CAC if RO is headed by DM, otherwise AGM and
above authorities at RO /CO CAC
c. Up to Scale IV headed branches AGM-RO-CAC

d. AGM-CAC-CO & above

59. Cap of ______ farm machinery loans per branch /year is fixed for branches where
the outstanding Farm Machinery portfolio is less than _______

a. 100, 25 b.25, 50 c. 50, 100 d. 25, 100

60. For financing second hand tractors age of the tractor should not be morethan
______ old, with loan repayable within______years.

a. 5, 5 b. 3, 5 c. 5, 3 d. 3, 3

CIBM, Manipal-Multiple Choice Questions – 2020 62

 61. For financing second hand tractors, minimum margin required is____& loan amount
shall not be more than _____ of the value of the tractor as per valuation report or sale
consideration whichever is less.

a. 40 %, 60%, b. 60% , 40 % c. 25 %, 75 % d. 10 %, 90 %

ALLHV

62. For financing Heavy Commercial Vehicles (HCV) under ALLHV, farmer should
have minimum________.

a. 8 acres of perennially irrigated lands

b. 15 acres of perennially irrigated lands

c. 6 acres of perennially irrigated lands

d. 2 acres of perennially irrigated lands

Purchase of Land for Agricultural Purposes

62. Under Scheme for Financing Small & Marginal Farmers for Purchase of Land for
Agricultural purpose, maximum permissible loan is Rs._____, repayable within ____
to_____years with a max moratorium of 24 months
a. 5 lakhs, 12-15
b. 7.5 lakhs, 7-10
c. 10 lakhs , 7-10
d. 7.5 lakhs, 5-7

Produce Loans

63. Farmers can be granted post-harvest loans against hypothecation or pledge or

warehouse receipts for an amount up to Rs ____ for a period up to___ and branch sanction
is under Produce loan is restricted upto ______ lakhs

a. Rs 50 lakhs , 12 months, 10 lakhs

b. Rs 50 lakhs , 6 months, 10 lakhs

c. Rs 50 lakhs , 12 months, 5 lakhs

d. Rs 50 lakhs , 18 months, 10 lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 63

Agri. Clinic & agri. Business

64. Under loan for agri. Clinic & agri. Business centres,for loans beyond Rs_____lakhs,
margin of 15-25 % is to be stipulated with project cost ceiling/ quantum not exceeding Rs
_______ lakhs for individual projects & overall ceiling of Rs.________ lakh for group
projects.
a. 5, 20 & 100
b. 1,10, & 50
c. 10, 20 & 100
d. 5, 10 & 50

65. In case of agri-clinics and agri business centres, which of the following is correct
a. Max. project cost per individual is Rs 20 lakhs
b. Loan to be classified as direct agriculture advance borrower’s margin is 5%
c. Borrower’s margin is5%
d. For loan up to Rs 5 lac, no collateral security or margin to be taken.

Fisheries Schemes

66. Under MATSYA Suraksha scheme, minimum Rs.______& maximum loan limit up to Rs
______ may be sanctioned for the purpose of _______
a. 10,000 & 50,000,meeting fish processing expenses
b. 10,000 & 1,00,000, meeting recurring expenses of fishermen
c. 50,000 & 10,00,000, meeting fish vending by SHG/JLG
d. 10,000 & 50,000,meeting recurring expenses of fishermen

67. Under Matasya Parirakshan, minimum & maximum loan limit for recurring business
expenses of fisherwomen is Rs. ________ & _______with repayment period up to
_______months
a. 1000 & 10,000, 12
b. Rs.5,000 & 25,000, 24
c. Rs.5,000 & 50,000, 35
d. 10,000 & 25,000, 36

Relief to Farmers Affected By Natural Calamities:

68. Banks can restructure crop loan for a period up to 5 years, if crop loss is:
a. Up to 33%
b. Between 33% to 50%
c. 50% or above
d. At discretion of banks

CIBM, Manipal-Multiple Choice Questions – 2020 64

69. Banks can reschedule crop loan for a period up to 2 years, if crop loss is:
a. Up to 33%
b. Between 33% and 50%
c. Above 50%
d. At discretion of banks

OD facility to Potato Cold Storage Units

70. Area specific “OD facility to Potato Cold Storage Units” what is the maximum Loan
amount?
a. 10 crore b. 50 crore c. 5 crore d. 6 crore

71. What is the collateral security by way of mortgage under Area specific “OD facility to
Potato Cold Storage Units”?
a. Landed properties shall not be less than 200% for limits upto Rs 1crore and 300% for
units above Rs 1 crore.
b. Landed properties shall not be less than 150% for limits upto Rs 1crore and 300% for
units above Rs 1 crore.
c. Landed properties shall not be less than 125% for limits upto Rs 1crore and 150% for
units above Rs 1 crore.
d. Landed properties shall not be less than 100% for limits upto Rs 1crore and 150% for
units above Rs 1 crore.

Dairy Loans
75. Milch animals should be bought at ________________ lactation stage for economic
yielding
a. fifth
b. maximum upto 4th stage
c. first or second
d. Any stage

76. The normal economic life of a milch buffalo is _____lactations and that of a cow is ____
lactations
a. 6 to 8, 9
b. 5 to 7, 10
c. 5 to 8, 15
d. 9, 10

77. Repayment period for Dairy animals is ____ years and repayment period stipulated for
sheep & goat rearing is _____ years
a. 5-7; 5-6 b. 5-7, 5 c. 5-7; 7-9 d 7-9;8-10

CIBM, Manipal-Multiple Choice Questions – 2020 65

(PAC) Panel of Agriculture Consultants for Sourcing Agri-proposals
78. Retired employees of PSU/ Public Sector Banks including retired employees of our Bank
with an unblemished service and having handled agriculture portfolio for at least
_____yrs during their service period with mandatory Agriculture Graduate degree are
eligible for PAC services
a. 3 years b. 2 years c. 7 years d. 5 years

Farmers producer Organization (FPO) financing

79. Under Credit Guarantee Fund Scheme (CGFS) for Farmer Producer Companies ,
Guarantee Cover up to ____% of the eligible sanctioned credit or ______ whichever is
lower is available .
a. 85%; 85 Lakhs
b. 90%; 100 Lakhs
c. 85% ; 100 lakhs
d. 90%; 85 Lakhs

80. Quantum under FPO finance by way of Term loan facility is ____% of the project cost
and incase of Working Capital ____ times of NOF/TNW for WC limit that exceeds Rs3 Cr.

a. 85% ; 10 b. 90%; 10 c. 75%; 9 d 85% ; 20

ANSWER KEY – AGRICULTURE

1 2 3 4 5 6 7 8 9 10
b b b b c c c b a e
11 12 13 14 15 16 17 18 19 20
d c d c d c d d a A
21 22 23 24 25 26 27 28 29 30
d a c b c c c a d b
31 32 33 34 35 36 37 38 39 40
b d b c c d c d c b
41 42 43 44 45 46 47 48 49 50
c b c c b b a c b D
51 52 53 54 55 56 57 58 59 60
b c a a b b a c a c
61 62 63 64 65 66 67 68 69 70
b b a b c a a a b c
71 72 73 74 75 76 77 78 79 80
c b d c c b c d a b

CIBM, Manipal-Multiple Choice Questions – 2020 66

 GOVT SPONSORED SCHEMES

1. Which of the following in general, is eligible as a borrower under NRLM?

a) SC/ST Women b) SC/ST Men c) Women Self Help Groups d) Men & Women in General

2. The repayment period for the Term loan under NRLM for Second dose is:
a) 36-48 months b) 12-18 months c) 24-36 months d) 3-6 years

3. What is the Weighted Average Interest charged under NRLM for the year 2020-21?
a) 7.70% b) 9.90% c) 10% d) 8.30%

4. Loan application for extending credit facility to SHGs under NRLM is

a) NF964 b) NF950 c) NF761 d) NF951

5. SHGs under NRLM can avail the loan as

a) Term loan only b) Cash Credit Limit only c) Either CC or TL d) Personal loan

6. Rate of subsidy in Rural areas for Special category beneficiary under PMEGP is
a) 15% b) 25% c) 30% d) 35%

7. Loan quantum under PMEGP for General category borrower is

a) 95% b) 90% c) 85% d) 75%

8. Fixed Capital Investment per Artisan/worker should not exceed ___in plain areas under
PMEGP
a) 1 lakh b) 1.5 lakh c) 10 lakhs d) 5 lakhs

9. Minimum CIR score from any CICs to be obtained to be eligible for a loan under PMEGP is
a) 650 b) 700 c) 750 d) 600

10. How many years ITR has to be submitted by the borrower for availing 2nd loan under
PMEGP?
a) 3 Yrs b) 1.5 Yrs c) 1 Yr d) 2 Yrs

11. Repayment of loan under PMEGP can be made as

a) 2 to 6 years with 8 mths holiday period b) 3 to 7 years with 6 mths holiday period
c) 5 to 8 years with 6 mths holiday period d) 3 to 7 years with 8 mths holiday period

12. The Project cost under National Urban livelihood mission (NULM) in case of individual
borrwers is restricted to
a) Rs. 5 lakh b) Rs. 50000 c) Rs. 3 lakh d) Rs. 2 lakh

CIBM, Manipal-Multiple Choice Questions – 2020 67

13. What is the Additional interest subvention provided to all Women SHGs who pay their
loan in time / prompt repayment is
a) 2% b) 7% c) 3% d) 5%

14. What is the income criteria in case of DRI loans?

a) Rs. 24000 in Rural areaS& Rs.18000 in Urban areas
b) b) Rs. 18000 in Rural areas &Rs. 24000 in Urban areas
c) c) Rs 100000 in Rural areas &Rs. 300000 in Urban areas
d) d) Rs. 11800 in urban areas &Rs. 11250 in rural areas

15. Repayment period under DRI scheme for solar home lighting system is
a) 60 mths b) 24 mths c) 30 mths d) 40 mths

16. Under Self employment scheme for rehabilitation of manual scavengers (SRMS) micro
finance up to a maximum project cost per scavenger given is
a) Rs. 25000/- b) Rs. 15000/- c) Rs. 50000/- d) Rs. 10000/-

17. The annual income of applicant's family should be below doublel poverty line to be
eligible under NBCFDC schemes. What is the income criteria in Rural areas
a) Rs. 120000/- b) Rs. 100000/- c) Rs. 98000/- d) Rs. 95000/-

18. The objective of New Akanksha scheme implemented by NBCFDC is

a) For setting up MSME units
b) b) For Domestic purpose
c) c) To Pursue Education
d) d) For Agriculture purpose

19. KrishiSampada Scheme is one of the Govt.of India initiative to develop

a) Finance to Women SHGs b) Micro finance to small farmers for agriculture purpos
c) Marine processing d) For Pesi culture

20. Maximum loan quantum under New Swarnima for women under MSME self
employment loan scheme is
a) Rs. 95000/- b) Rs. 55000/- c) Rs. 85000/- d) Rs. 100000/-

21. Percentage of Beneficiaries to be covered under NRLM is

a) 30% to SC/ST, 10% to minorities & 5% to disabled persons
b) b) 60% to SC/ST, 20% to minorities & 10% to disabled persons
c) c) 50% to SC/ST, 10% to minorities & 8% to disabled persons
d) d) 50% to SC/ST, 15% to minorities & 3% to disabled persons

22. What is the number of persons to form WSHG group in case of special SHGs under
NRLM
a) five to ten persons b) fifteen to twenty persons
c) minimum 5 persons d) Minimum 10 persons

CIBM, Manipal-Multiple Choice Questions – 2020 68

23. As per PMEGP scheme, Rural area means population less than
a) 15000 b) 20000 c) 10000 d) 25000

24. Finance under PMEGP is Only for

a) New Projects b) Existing Projects c) Agri Projects d) MSME Projects

25. What is the margin amount under MahilaSamridhiYojana, a micro finance scheme for
women
a) NIL b) 2% c) 3% d) 5%

ANSWER KEY
1 c 2 a 3 b 4 d 5 c
6 d 7 b 8 a 9 a 10 c
11 b 12 d 13 c 14 b 15 a
16 a 17 c 18 c 19 b 20 d
21 d 22 c 23 B 24 A 25 a

CIBM, Manipal-Multiple Choice Questions – 2020 69

 GOVERNMENT BUSINESS MODULE
1 If excess contribution is made in a year, more than 1,50,000 in a PPF account. Then which
of the following conditions will apply to that excess contribution.
a)It will not carry any interest. b) SB interest prevailing at SBI.
c) SB Interest of Post Office. d) Prevailing PPF rate.

2 The maximum number of installments in which subscriptions of PPF can be paid in a

Financial Year?
a)1 b)6 c)10 d)12

3 After the maturity of PPF account it can be extended further for one block for a period of
a)1 year b)5 years c)Cant be extended d)10 years

4 The Principal of loan availed by PPF subscriber can be repaid in

maximum________months.
a)36 months b)12 Months c)24 Months d)60 Months

5 The age criteria for retired personnel of defense services (excluding civil defense
employees) to open an account under Senior citizen Savings scheme is:
a) 60 years b) 55 years c) 50 years d)65 years

6 The minimum and maximum amount of deposit under Senior citizen Savings scheme is:
a)100 & 1,50,000 b)500 & 5,00,000
c)1000 &1,50,000 d)1000 & 15,00,000

7 After the maturity of the Senior Citizen Savings schemeupto what period the tenure of
the account can be extended.
a) 5 years b) 3 years c) 1 year
d) Can’t be extended further as it will violate income Tax guidelines.

8 The minimum amount of initial deposit in Sukanya Samriddhi account is

a) 500 b) 100 c) 250 d) 1000

9 Deposits in Sukanya samriddhi account can be made up to ______years from the date of
account opening.
`a)10 years b)15 years c)21 years d)5 years

CIBM, Manipal-Multiple Choice Questions – 2020 70

10 The maximum number of accounts per family for girl children under sukany asamriddhi
account is
a)1 b) 5
c)More than 2 a/cs are permitted only when the guardian submits affidavit and proof of
Birth of Twins/ Triplets in first or Second order of Birth
d)No limit

11 Among which of the small savings schemes, the compounding frequency is Quarterly
a)Public Provident Fund Scheme b)Senior Citizen Savings Scheme
c)Kisan Vikas Patra d)Sukanya Samriddhi Account Scheme

12 In the Senior Citizen Savings Scheme the interest on deposits from the date of death of
account holder till date of final closure of the account will be at
a) SB Rate of SBI b)Post office savings Account Rate
c)Flat 3 % d) Repo Rate

13 In a PPF Account withdrawal can be made any time after the expiry of ______ years
from the end of the year in which the initial subscription was made
a)10 years b) 7 years
c) No withdrawal can be made before maturity of account d) 5 years

14 In Senior citizen savings scheme if the account is closed within a year of opening of
account then which of the following conditions will apply:
a) 1% of deposit amount will be deducted
b) 1.5% of the deposit amount will be deducted
c) Interest paid will be recovered
d) 1% of the deposit amount will be deducted.

15 A default account in sukanya samriddhi scheme can be regularized .Mark the correct
answer
a) It cannot be regularized once defaulted for a year.
b) It can be regularized by paying penalty of Rs 250/- only.
c)Can be regularized any time during the period of deposit by paying penalty of Rs 50/- and
the minimum deposit of Rs 250/-for each defaulted financial Year
d)It can be regularized by paying a penalty of Rs 250 and Rs 100 per year of default.

CIBM, Manipal-Multiple Choice Questions – 2020 71

16 In Senior citizen savings scheme if PAN is not made available at the time of opening of
account then, which of the
a)It has to obtained within 12 months from date of account opening.
b)to be submitted within a period of six months from the date of opening of the Account
c) to be submitted within a period of 4 months from the date of opening of the Account
d) to be submitted within a period of 3 months from the date of opening of the Account

17 What is the maximum number of nominations that can be made in Sukanya Samridhi
Account?
a)3 b)2 c)4 d)5

18 What is the tenure of maturity of Sukanya samriddhi account?

a)21 years b)15 years c)10 years d)20 years

19 What is the minimum amount of deposit in Kisan Vikas Patra?

a)500 b)1000 c)250 d)5000

20 The maximum amount of deposit in Kisan Vikas Patra is

a)1,50,000 b)2,00,000 c)No Limit d)15,00,000

21 What is the max period of deposit in Kisan Vikas Patras?

a)124 months b)120 months c)96 months d)60 months

22 In case of opening of a new KVP account by cheque ,DD.Which of the statements is true?
a. Certificate will be issued from the date of realization of instrument
b.Certificate will be issued from the date of deposit of cheque/DD.
c. Certificate will be issued from the date mentioned in the instrument
d.None of the above

23 Transfer of certificate in KVP can be made provided the transferee eligible rules to
purchase certificates, transfer is made after expiry of ________ years
a) 1 year b)2 year c)3 year d)5 year

24 When can a Kisan Vikas Patra be prematurely encashed?

a)On the death of the holder or any of the holders in the case of a joint holder;
b) On forfeiture by a pledge being a Gazetted Government Officer;
c)When ordered by a court of law
d)All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 72

25 Post maturity interest after maturity in Kisan Vikas Patra which has become due shall be
paid as:
a)Simple Interest at Post office savings Rate
b)Simple Interest at SBI savings Rate
c)Repo Rate as prevailing at the time
d)Existing interest rate of KVP availed at the time of account opening to continue

26 The age criteria of joining NPS is

a)18 to 50 years b)21 to 55 years c)18 to 65 years d)18 years 70 years

27 In NPS every individual subscriber is issued a Permanent Retirement Account Number

(PRAN) card and has a _______ digit unique number
a)10 b)6 c)12 d)14

28 The NPS offers two approaches to invest subscriber’s money: what are those choices?
a)Active Choice & Passive Choice b)Passive Choice & Traditional Choice
c) Active choice and Auto Choice d)Auto Choice and Passive Choice

29 There are four Asset classes under Active choices in NPS account. The three of them are
Equity, Government securities, Alternative Investment Funds. The fourth one is….
a)Corporate Debt b)Gilt Funds c)Futures d)Options

30 In Auto choice aggressive option, under NPS account the maximum Equity exposure is
__________upto age of 35.
a)65% b)70% c) 75% d) 80%
31 In NPS account, Conservative (LC - 25) – Maximum Equity exposure is 25% up to the age
of_________
a)30 years b)35 years c)40 years d)50 years

32 In Collection of Direct Taxes- OLTAS, what is CIN?

a) Challan Identification Number b)Collection Information Number
c)Challan Information Number d)Challan Identity Number

33 Under NPS account, If the accumulated pension wealth > Rs.200000.00 (A subscriber can
withdraw ______ of his accumulated pension wealth as a lump sum and the rest _____
will be utilized for purchase of an annuity
a)60% & 40% b)50% & 50% c)70% & 30% d)65% & 35%

34 The Sovereign Gold bonds are issued in denomination of 1 gm of gold and multiple
thereof subject to maximum of 4kg Individual& HUF and ____ Kg for trust.
a) 10 b)15 c)20 d)25

CIBM, Manipal-Multiple Choice Questions – 2020 73

35 In sovereign Gold Bonds redemption is allowedafter 8 years from the date of issue,
premature redemption may be permitted after ____ year from date of issue
a)5th b)3rd c)7th d)1st

ANSWER KEY –
1 a 6 d 11 b 16 b 21 a 26 c 31 b
2 d 7 b 12 b 17 c 22 a 27 c 32 a
3 b 8 c 13 d 18 a 23 a 28 c 33 a
4 a 9 b 14 c 19 b 24 d 29 a 34 c
5 c 10 c 15 c 20 c 25 a 30 c 35 a

CIBM, Manipal-Multiple Choice Questions – 2020 74

 GENERAL BANKING
Cash & Security :
1. Late Cash receipt after office hours can be accepted upto
a.Rs.10,000 c. Max50,000
b.Rs.1lakh d. any amount can be accepted

2. Late payments of cash can be made to upto a maximum of Rs.

a. To drawer & Rs.10,000/- c. Payee & Rs.10,000/

b. 3rd party & Rs.1 lakh d. Payee & Rs.,1lakh

3. Investigation is to be conducted by an officer appointed by DGM/GM if cash shortage is

Rs. or more.
a.1000 b.50000 c.25000 d. 10000

4. A currency note that is formed by joining a half of any one note to a half of another note
is called
a. Fake note
b. Mismatched note
c. Mutilated note
d. Impound note

5. Stamped indemnity to be obtained in all cases of refund of excess cash of Rs.

............ and above
a.1000 b.3000 c.5000 d.25000

6. Excess cash kept in SL–Excess Cash is to be credited to Commission account at the end of
a. Quarterly
b. Half Yearly
c. Feb & Aug
d. End of Financial year

CIBM, Manipal-Multiple Choice Questions – 2020 75

7. Procedure for remittance of Cash exceeding Rs.50 lakhs, is to be accompanied by
a. One Armed Guard
b. Two Armed Guard
c. Two SWOs
d. One Officer & SWO

8. As per the revised guidelines of RBI, penalty for shortage of notes of Rs.50 and above in
the remittance to RBI is
a. Equal to value of denomination
b. Value of loss or shortage of notes
c. Flat 10,000
d. Both a and b

9. Penalty for non-functioning of CCTV, cash /treasure kept outside strong room, non-
utilization of note sorting machine etc.
a. Rs.1000 enhanced toRs.5000
b. Rs.5000 for each irregularity, enhanced to Rs.10000 in case of repetition
c. Rs.500 for inspection
d. Both b &c

10. What is the insurance cover available for money & securities of Bank while in transit
and held at Branches & offices.
a. 10 cr & 100cr
b. 25 cr & 50cr
c. 10 cr & 120cr
d. 5 cr & 30cr

MISCELLANEOUS:

11. What is the Power of officer to Authorise/Pass Withdrawal Order Slips.

a. Rs.10000/-
b. Rs.100000/-
c. Rs.50000/-
d. None

CIBM, Manipal-Multiple Choice Questions – 2020 76

12. At What Interval , All sensitive currency chests should be visited by the Chief Security
Officer
a. once in a year a
b. once in two years.
c. once In three years.
d. None

13. How many Locker Operations are free in a Year:

a. 3
b. 12
c. 6
d. Unlimited

14. What is the Cut off Limit to report the Fraud to Central Bureau of Investigation:
a. 3 Crore & Above
b. 1 Crore & Above
c. 5 Crore & Above
d. None

15. Which is not the identified sources where the Leads are being generated into the LMS: I
Lead : 2.0 as per EASE 3.0 of DFS.
a. Internet Banking
b. Mobile Banking,
c. SMS and Missed Call.
d. None
KEYS
1d 2 3 4 5 6 7 8 9 10
d a d a c d b d b D
11 12 13 14 15
b a b a d

CIBM, Manipal-Multiple Choice Questions – 2020 77

 Correspondence, Filing, Preservation/Destruction Of Records

1. EMT Register should be preserved

a. Permanently b.12years c. 21years d. 33 years

2. Death Claim papers should be held in double lock for a period of years from
the date of settlement
a. 12 years b.8 years c.21 years d. permanently

3. Inspection report and replies are to be preserved for a period of

a. 5 years b.3 years c.8 years d. 12 years

4. Normally the work of destruction of old records is undertaken during the month of
a. April b. November c. September d, December

Safe Deposit Lockers / Safe Custody Articles

5. The relationship between banker and customer under safe deposit locker hired is
a. Banker & Customer c. Bailee & Bailor
b. Lessor and lessee d. Principal & Student

6. How many nominations can be there in Safe Custody Service?

a. 1 b.4 c. 2. d. not accepted.

7. Branches to collect advance rent of years + break open charges, whenever locker is hired,
apart from normal rent
a. 5 years b. 3 years c. 10 years d. 8 years

8. Refund of locker rent in case of surrender of locker before expiry date shall be
a. Remaining period
b. remaining period should be more than 6months
c. For the unexpired quarters
d. No need to refund rent

9. In the case of Safe Custody service, the relationship between the customer and the
banker is that of
a. Banker & Customer c. Bailor & bailee
b. Lessor and lessee d. Principal & Trustee

CIBM, Manipal-Multiple Choice Questions – 2020 78

10. The receipt for Safe custody articles accepted by the Bank should be signed by
a. By the Branch Incharge
b. Officer and Branch in charge jointly
c. Any two officers
d. Cashier Jointly with Officer

11. In the event of death of any of the joint hirers of lockers with “Operation under Joint
signature clause“ , where there is nomination available branch should give access of the
locker to
a. Survivor alone can operate
b. No operations allowed
c. Legal hearers are to called to settle
d. Jointly to the survivor and nominee

Bankers’ Account/ SL/SA/BAA

12. Bankers account maintained by our Branches is to be operated jointly by two P.A.
holders if the withdrawal exceeds

a. Rs.100000 b. Rs 50000/- c. Rs.5000/- d. Rs.10000/-

13. To open the Bankers account, Branch to get the permission from
a. AGM of Regional Office b. Section incharge in RO
c. DM fromCircleOffice d. MIPD section fromCO

14. Whether manual Refund claims against written back non-credit items can be submitted?
a. Manual claims are since dispensed with and claim to be preferred in SAS package
b. Branch Manager &Cashier to prefer the claim
c. Both key holder to sign the claim letter
d. Branch cannot get back these sums.

15. All debit slips/vouchers under sundry liabilities should be authorised by

a. Officer has to authorize
b. Two PA holders need to sign
c. Senior Manager/Manager branch incharge
d. Incharge officer of Advances

CIBM, Manipal-Multiple Choice Questions – 2020 79

 16. Excess cash at the end of the day shall be kept in
a. Sundry Deposits for want of particulars

b. GL209272431

c. Cashiers personal SB account

d. SL –Accounts Payable –Excess Cash

Income & expenditure:

17. Delegation of powers of SM/Mgr in charge of branches to incur revenue
expenditure at a time(other than premises)

a.Rs.750 b.Rs.500 c.Rs.1000 d.Rs.2500

18. Delegation of powers to incur revenue expenditure in case of II line manager/ Scale I
heading branch for premises

a.Rs.1000 b.Rs.1500 c.Rs.2000 d.Rs.2500

19. Payment of Legal expenses in respect of suit claims to be debited to

a. General Charges c. Sundry Assets
b. Borrower account d. Commission Misc Staff Matters

20. Cash incentive for accepted suggestions under Employees Suggestion Scheme
for individuals (ESS)

a.Rs.2000 b. 5000 c. 3000 d.8000

21. What is the incentive under Employee Suggestion Scheme for Group suggestion?

a.Rs.2000 b.5000 c.3000 d.8000

22. Where is the General Power of Attorney of officers working in branches are held?
a. At HRM Section of Circle Office
b. At GA Section of RO
c. At respective Branches only
d. With the individual Officers only

CIBM, Manipal-Multiple Choice Questions – 2020 80

RISK BASED INTERNAL AUDIT

23. What are areas assessed under Business Risk?

a. Credit Risk & Liability Risk c . Operational Risk

b. Earning Risk d. All the above

24. The main reason for slippage of Branch gradation from Low to Medium or High
is because of

a. Operational Risk

b. Compliance Risk

c. Internal Risk

d. Credit Risk

25. What is the periodicity of RBIA at various levels of Composite Risk?

a. High Risk 6 months, Moderate risk 12months

b. Low Risk 18months

c. Normal Risk 15months

d. All the above

26. What is MAP drawn by Circle Office to mitigate risks in Risk Based Internal Audit?

a. Managing Ability Plan c. Monitorable Action Plan

b. Money Action Plan d. Management Audit Progress

27. Main component under Operational Risk

a. People & Process c. Technology &Reputation
b. out sourcing & exceptional information. d. All the above

28. Areas under assessment in respect of Management Risk under Control Risk?
a. Business Strategy
b. Branch Management
c. Both a &b
d. Profitability of Branch

CIBM, Manipal-Multiple Choice Questions – 2020 81

Pension Accounts & PPF

29. Life Certificate to be obtained from Pensioners every year in the month of

a. April c. January

b. November d. September

30. Periodicity of submission of certificate of Non remarriage/Non Marriage

a. Quarterly April/July/Oct/Jan

b. Twice in a year May and November

c. Yearly once during January

d. Yearly once along with Life Certificate

Collection of cheques and bills:

31. Relationship between a banker and a customer in the case of OSC/OBC is that of

a. Principal and Agent c. Bailee and Bailor

b. Banker and Customer d. Giver and Receiver

32. Bank can stop issuing cheque book, if there are _occasions of dishonor of cheque of
value less than Rs.1 crore, during the financial year

a.2 b.4 c.2 d.6

33. Public provident fund (PPF) accounts can be opened by

a. Individual, HUF, minor

b. Firm, HUF, company

c. Individual, company, firm

d. Individual person only

34. What is the maximum deposit that could be accepted under the Senior Citizen Scheme?

a.Rs.05.00lac b. Rs.07.50lac c. Rs.10.00lac d. Rs. 15.00lac

CIBM, Manipal-Multiple Choice Questions – 2020 82

35. What is the age criteria for under Senior Citizen Scheme 2004 for opening the account

a. 60years

b. 55 years in case of those who are retiring voluntarily

c. 65years

d. a and b

36. mmediate credit of local cheques upto the prescribed limit is to be done for eligible
accounts incase

a. At the specific request of Branch Manager

b. To all the customer whose cheques are less than Rs.15000/-

c. At the specific request of the customer

d. Irrespective of request to all the SB account holders

37. Dishonor of ECS mandate for reason of insufficient funds for four or more occasions
during the financial year may result in

a. Further ECS mandate will not be accepted

b. Penalty of Rs.1000 to be imposed

c. Closure of account by the Bank.

d. Caution letter to be issued to customer.

Government business products & DD/PO/TT:

38. What are the min & max amounts accepted in Sukanya Samriddhi Account

a. Min 500 &Max 10000 in a year

b. No Min & Max1,00,000/-

c. Min of Rs.250/- &Max of Rs.1,50,000/- in a Financial Year

d. No min & No Max ceiling

CIBM, Manipal-Multiple Choice Questions – 2020 83

39. Demand Draft for Rs.1 lakh and above should be signed by

a. Jointly by TWO officers who are PA holders

b. Cashier & One Officer jointly

c. Upto 5 lakhs only Single Officer

d. Invariably by Manager & Officer Jointly

40. For Issuing Duplicate DDs, a simple undertaking letter from purchase in lieu of
indemnity upto

a. Rs.1000 for non customer, & Rs.10000 for customer

b. Rs. 5000 for non customer & Rs.1 lakh for customer

c. Rs.2000 irrespective of customer and non customer

d. Rs.500 for noncustomer and Rs.5000 for customers

41. What is the maximum amount of DD that can be issued by Rural & Semi urban
branches as on date:

a. Rs 1 lakh and above

b. Rs. 50000 and above

c. Rs. 10 lakhs after the introduction of CTS single color DD

d. Such type of Restriction now removed.

42. DD can be revalidated only

a. Two times c. One time

b. In cycles of 4 months d. No revalidation, cancel and issue new.

43. Destruction of cancelled security items to bed one and recorded in register

a. During the visit of Executive from Regional Office

b. During course of regular inspection certified by inspecting officers and joint key holders

c. Branch Manager and the SWO who has cancelled the instrument.

d. Before the Day End all cancelled instruments for the day are to be destroyed.

CIBM, Manipal-Multiple Choice Questions – 2020 84

 44. The pension scheme offered in Banks called as

a. It is Defined Contributory Pension Scheme (DCPS)

b. New Pension Scheme(NPS)

c. Employees Pension Scheme(EPS)

d. Both A & B

45. Atal Pension Yojana Scheme is offered to:

a. All citizens in the unorganized sector

b. Only to Agriculture Laboureres

c. All the Income Tax payers

d. Central Government Employees

46. Pradhan Mantri Suraksha Bima Yojana (PMSBY) offered to thefollowing:

a. All Individuals who are working in Public Sector

b. All Savings Bank customers aged 18 to 70years

c. All citizens who are in unorganized sector

d. All SB accounts holders of PSB irrespective of Age.

47. What is the sum insured under PMSBY

a. Rs. 100000 to Rs.500000/- depending on selection by Accountholder

b. Natural Death during the policy in force

c. Rs.50000 to Rs.100000 to all our SB accountholders

d. Death due to accident, Loss of both eyes, hands, foot subject to maximum of Rs.2lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 85

48. Pradhan mantra Jeevan Jyoti Bima Yojana (PMJJBY) Scheme covers
a. Death due to any reason

b. Death due on Natural

c. Death due to accident

d. It is a General Insurance Scheme

49. Our Bank has entered into MoU for Life Insurance with

a. New India Assurance Company

b. United India Insurance Company

c. Bajaj Allianz General Insurance Co

d. Canara HSBC OBC Life Insurance Co

50. Customers’ Day is to be observed on

a. 10 of every month c. 3rd Friday of every month

b. 15th of every month d. Last day the month

51. Customers’ Fortnight every year is observed between

a. 14th Nov to28th Nov c. 1st Jan to 14thJan

b. 10th Feb to25th Feb d. Every month Last 15days

52. Statutory Liquidity Ratio is governed by

a. RBI act c. N I Act

b. RTI act d. Banking Regulation Act1949

53. The time limit adopted by our bank to ensure redressal of complaints/
representations received from the customers directly is:

a. 7days c. 21days

b. 30days d. 24hours

CIBM, Manipal-Multiple Choice Questions – 2020 86

 54. The time limit adopted by our bank to ensure redressal of complaints/ representations
received from PM‟s office is

a. 10 days b.7 days c.15 days d. 3 days

55. Balancing of security items is to be done under the supervision of:

a. Branch In charge c. Cashier & Officer

b. Two PA holders d. Both the Key Holders

56. Off-shore Banking Unit can do the following Operations?

a. Lending Abroad c. Treasury Operations

b. Deemed Exports d. Retail Lending

57. What is the “Quiet Period”?

a. It is the period commencing from the first day following the end of the reporting period
until the release of financial results/performance by the Bank

b. No one, including the Designated spokes persons, should communicate to any

one regarding matters relating to earnings and financial performance

c. Both a & b

d. Next 3 days after publishing Balance Sheet

58. GST has come into existence from which date?

a.From 01-07-2017 c.01-09-2017

b.01-04-2017 d.01-01-2017

59. In case of resident assesses PAN is compulsory for entering into financial transaction of
an amount aggregating to

a.150000 b.250000 c.300000 d.500000

CIBM, Manipal-Multiple Choice Questions – 2020 87

60. U/S 194 N of Income Tax Act TDS on cash withdrawal 2% is to be deducted if
the aggregate sum of cash during the financial year exceeds

a.1000000 b.2500000 c.10000000 d.5000000

61. As per Finance Act 2019 the standard deduction of salary is

a.40000 b.50000 c.75000 d.25000

62. The threshold limit for TDS on Interest income other than interest on securities for
other than senior citizen, is

a. 10000 or more

b. 40000 or more

c. 50000 or more

d. 85000 or more

63. The threshold limit for TDS on Interest income other than interest on securities for
senior citizen,is

a. 10000 or more

b. 40000 or more

c. 50000 or more

d. 5000 or more

64. The threshold limit for TDS on rental income is

a. 180000 or more
b. 240000 or more

c. 100000 or more

d. d.150000 or more

CIBM, Manipal-Multiple Choice Questions – 2020 88

65. Commission payable to Banks on handling Govt. Collection of Tax by bank is

i) Rs40 per transaction Receipt in physical mode

ii) Rs9 per transaction receipt in e-mode.

iii) Pension payment Rs75 per transaction

iv) 6.50 p/Rs100

a. (i) and (ii) b. (i) and (iii) c. (ii) and (iii) d. (i) to (iv)

Keys:-
1a 2d 3c 4b 5b 6a 7b 8c 9c 10 b

11d 12 b 13 d 14 a 15 c 16 d 17 c 18 a 19 a 20 c

21 b 22 c 23 d 24 b 25 d 26 c 27 d 28 c 29 b 30 d

31 a 32 d 33 d 34 d 35 d 36 c 37 c 38 c 39 a 40 d

41 d 42 c 43 b 44 d 45 a 46 b 47d 48 a 49 d 50 b

51 a 52 d 53 a 54 b 55 d 56 a 57 c 58 a 59 b 60 c

61 b 62 b 63 c 64 b 65 d

CIBM, Manipal-Multiple Choice Questions – 2020 89

 RETAIL LENDING SCHEMES
(1) Purpose of Canara Pension for retired employee of our Bankscheme includes:-
a) To meet the cost of medical expenses
b) To meet other genuine personal needs of the pensioners/Family Pensioners.
c) To make payment of premium of IBA Group Mediclaim Insurance Policy for Retired
Employees of our Bank/Family Pensioners of Retired Employees of our Bank who have
opted for and are covered under the scheme.
d) All of the above

(2) What is the quantum and NTH for Retired Employees of our Bank/Family Pensioners of
Retired Employees of our Bank under Canara Pension Scheme:-
a) 20 months’ pension amount or Rs.10,00,000/- whichever is less, subject to maintenance
of NTH of 25% of Gross after deducting the proposed EMI.
b) 10 months’ pension amount or Rs.5,00,000/- whichever is less, subject to maintenance of
NTH of 25% of Gross after deducting the proposed EMI.
c) 15 months’ pension amount or Rs.7,00,000/- whichever is less, subject to maintenance of
NTH of 25% of Gross after deducting the proposed EMI.
d) 15 months’ pension amount or Rs.10,00,000/- whichever is less, subject to maintenance
of NTH of 25% of Gross after deducting the proposed EMI.

(3) Persons eligible for applying under Canara Pension Scheme(towards premium payment
for IBA Medical Scheme) are:-
a) Pensioners of the bank
b) Family pensioners of the bank
c) Family pensioners of other Scheduled Commercial Banks can also apply
d) Both options a& b are correct

(4) Security in case of loan to family pensioners under Canara Pension Scheme:-
a) Third party guarantee / co-obligation good for the amount should be obtained invariably.
b) Obtaining Third party guarantee / co-obligation good for the amount is optional.
c) Collateral equivalent to the loan amount like mortgage of L & B to be obtained
d) Third party deposit may be obtained

(5) Maximum loan eligibility of the pensioner/Family pensioner to remit the Annual
Premium of the IBA Group Medicaid Insurance Policy as a Second Loan shall be:-
a) The amount of Annual Premium payable for the year
b) Maximum, eligible loan amount as per Canara Pension Loan Scheme
c) Rs.90,000/-
d) Whichever is lower out of the above three(option a , b , c)

CIBM, Manipal-Multiple Choice Questions – 2020 90

(6)Minimum gross salary for salaried Individual for 2 wheeler:-
a. minimum Gross Salary of Rs.1.75 lakh sp.a.
b. minimum Gross Salary3lacks per annum
c. minimum Gross SalaryRs 1lacks per annum
d. No such stipulation

(7) Based on merits of individual cases(under Canara Vehicle for Two Wheelers), the
respective sanctioning authority may permit relaxation in the net take home salary for
salaried personsto:-
a) 25% of gross salary after meeting the proposed instalment for the loan.
b) 35% of gross salary after meeting the proposed instalment for the loan.
c) 40% of gross salary after meeting the proposed instalment for the loan.
d) 30% of gross salary after meeting the proposed instalment for the loan.
e) None of the above

(8) For existing customer under Canara Vehicle (2 wheelers) for salaried persons, the loan
quantum may be granted:-
a) up to 85% of the total value inclusive of invoice value, Life Tax, registration charges,
insurance premium and other accessories OR
b) To the extent of 50% of their annual net income in the immediate previous year
c) Whichever is less of the above two options a & b
d) None of the above

(9) For new customer under Canara Vehicle (2 wheelers) for salaried persons, the loan
quantum may be granted:-
a) up to 80% of the total value inclusive of invoice value, Life Tax, registration charges,
insurance premium and other accessories OR
b) To the extent of 50% of their annual net income in the immediate previous year
c) Whichever is less of the above two options a & b
d) None of the above

(10) Margin for existing customer salaried class for canara vehicle (2 wheeler) loan is:-
a) 15%
b) 20%
c) 10%
d) None of the above

(11) Margin for New customer salaried class for canara vehicle (2 wheeler) loan is:-
a) 15%
b) 20%
c) 10%
d) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 91

12) Mode of Disbursement for Canara Vehicle (2 wheeler) for the salaried class can be by
way of
(a) DD (b) NEFT (c) RTGS (d) All of the option are correct

13) Persons/ entities eligible for Canara Vehicle (4 wheeler) if they meet other eligible
criteria are:-
a) individuals
b) professionals
c) reputed firms/ companies
d) All of the above

14) The following persons/ entities is/are not eligible for Canara Vehicle Loan:-
a) individuals
b) professionals
c) reputed firms/ companies
d) HUF

15) Minimum gross salary for salaried individual for 4 wheeler:

a. Rs.3 lakhs PA b. Rs.5 lakhs PA
c. Rs.2 lakhs PA d. Rs.10 lakhs PA

16) Margin for loan above Rs.25 lakhs for new 4 wheeler for Existing Salaried Customers is:
a. 10% b. 15% c. 20% d.30%

17) Repayment period for 4 wheeler (new)

a. 84 EMIs b. 60 EMIs c.72 EMIs d. 120 EMIs

18) Maximum loan for 4 wheeler (old):

a. 60% approved value with a maximum of Rs.15 lakhs
b. 60% of approved value with a maximum of Rs.10 lakhs
c. 90% appraised value with a maximum of Rs.20lakh
d. None of theabove

19) Old car financed under canara vehicle should be not older than:-
a. 5 years b. 7 years c. 10 years d. 6 years

20) Margin on loans up to Rs 10lacks for new 4 wheeler vehicle loan for agriculturists who
are our existing customers:-
a. 10 % b. 15% c. 20% d. 25%

CIBM, Manipal-Multiple Choice Questions – 2020 92

21) 10 months gross salary subject to a maximum of Rs.300000/- can be sanctioned under
Teacher’s loanby:-
a. CM of VLB, AGM of ELB
b. Manager in small branch
c. Senior Manager in medium branch
d. CM & Above authority

22)Entire quantum under Teacher’s loan must be cleared with a maximum of:-
a. 48 EMIs b. 60 EMIs c. 36 EMIs d. 24 EMIs

23) Net Take Home salary for Teacher’s loan should be :

a. 30% or Rs.10000/- whichever is higher
b. 40% or Rs.12500/- whichever is higher
c. 25% or Rs.15000/- whichever is higher
d. None of the above

24) Repayment period under Canara Mortgage by Respective Sanctioning Authority:-

a. 84 months b. 120 months c. 60 months d. 144 months

25) . Margin & Maximum loan under Canara Mortgage:-

a. 50% of value of property subject to Rs.10 Crores
b. 25% of value of property subject to Rs. 5 Crores
c. 10% of value of property subject to Rs.1 Crore
d. 5 % value of property subject to Rs.50 lakhs

26) Security of loan under Canara Mortgage:

a. 100% of loan amount b. 200% of loan amount
c. 300 % of loan d. none of the above

27) Who are not eligible for Loan under Canara Mortgage:-
a. Individual customers
b. Non customers well introduced to bank
c. NRI customers with their resident close relatives as co-borrower
d. Companies/Firms/Trust/HUFs/Business establishments

28) Minimum marks required to eligible for retail loanin NF 990(Retail scoring model):
a. 70 b. 60 c. 80 d. 40

29) Total marks required for recommending ROI concession in retail lending loans(NF 990):
a. 70 b. 45 c. 60 d.80

CIBM, Manipal-Multiple Choice Questions – 2020 93

30) Retail Scoring model to be adopted for canara Rent and Canara Mortgage loans are
A. NF 990 B. Secured Loan Rating Sheet
C. Vehicle Loan Rating Sheet D. Clean Loan Rating Sheet

31) Retail Scoring model to be adopted for canara Budget loans is

A. NF 990 B. Secured Loan Rating Sheet C. Vehicle Loan Rating Sheet D. Clean Loan
Rating Sheet

32) The cut-off grade under secured loan ra ng sheet is___

A. Grade 5 B. Grade 6 C. Grade 7 D. Grade 8

33) Retail lending loans of close relative of employees can be sanctioned:-

a. Scale I authority b. Scale II
c. Scale III d. Scale IV & above authority

34) Canara Rent and Canara Mortgage proposals with exposures beyond Rs. 5 Crores
falling under HO powers shall be handled, processed and sanctioned by:-
a. Board of Directors b. Retail Assets Wing, HO
c. CAC of Board d. Respective Credit Wing, HO

35) Cut off limit for endorsing copies of retail application/credit report isabove:-
a. Rs.10lacks b. Rs. 5lacks c. Rs. 1 Lac d. 3 lakhs

36) Registration charges and documentation charges to be included in case of

housing loans where project cost is up to :-
a. Rs.10lacks b. Rs.20lacks c. Rs.30lacks d. 40 lakhs.

37) Prior to take over of Retail loans from NBFCs /HFCs, the account should have
satisfactory conduct forMinimum period of
a. 1 year b. 2 years c. 3 years d. 4 years

38) Branch having more than ---- % of NPA under retail loans have no powers to
sanction loan under these scheme
a. 1 b. 2 c. 3 d. 5

HOUSING LOAN:-
39) Minimum margin for new Housing loans upto Rs.30lacs:
a. 10% b. 20% c. 25% d. 40%

40). Margin on HL for loans above Rs. 30lacks upto Rs.75lacks for old houses more
than 10 years old:
a. 20% b. 25% c. 30% d. 40%

CIBM, Manipal-Multiple Choice Questions – 2020 94

41). Risk weight on CRE-RH is:
a. 75% b. 50% c. 100% d. 60%

42) Housing loan is classified under priority in metropolitan centre (with population
of 10 lakhs and above):
a. Upto Rs.35 lakhs loan overall cost should not exceed Rs.45lacs.
b. Loan should not exceed Rs.20 lakhs and project cost shall not exceed Rs.25lacks.
c. Loan upto Rs.15lakhs and project cost shall not exceed Rs. 20lacks
d. HL in metros are not considered under priority sector

43). Maximum loan for repairs & renovation of House:

a. 75% of cost subject to maximum Rs.15lacks
b. 60% of cost subject to maximum of Rs.10lacs
c. 50% of cost subject to maximum of Rs.20lakhs
d. No stipulation for maximum quantum

44). Minimum confirmed service in Housing loan for salaried class applicant :
a. 3 years b. 4 years c. 1 year d.2 years

45). Reimbursement of housing loan can be permitted by:

a. Circle Head & above authorities at HO not exceeding 25% of Loan amount
b. CM & above authorities
c. Senior Manager in large branches
d. Reimbursement not permitted at all

46) Pre-penalty for closure of housing loan(floating ROI) before maturity period:
a. NIL b. 25% c. 10% d. 15%

47) . Risk weight for individual housing loans sanctioned on or after 16.10.2020where LTV is
above 80% and below 90% will be
a. 35 b. 50 c. 40 d. 75

48). In composite housing loans, utilization of loan amount for purchase of plot is
restricted to:
a. 75% b. 60% c. 50% d. 40%

49). Processing charges for general housing loan scheme is

a. 0.50% of loan amount with Min 1,500/- & Max 10,000/-
b.1.00% of loan amount with Min 2,500/- & Max 10,000/-
c.1.50% of loan amount with Min 1,500/- & Max 10,000/-
d.2.00% of loan amount with Min 2,500/- & Max 10,000/-

CIBM, Manipal-Multiple Choice Questions – 2020 95

50). Documentation charges for general housing loan is
a. 0.50 % of loan amount with a minimum Rs 500/-
b.1.00 % of loan amount with a minimum Rs 500/-
c.1.50 % of loan amount with a minimum Rs 500/-
d. Nil

51). Payment of service charges to approved builders under housing loan scheme:
a. 0.25 % of housing loan amount subject to a maximum amount of Rs.50000
per sanction provided minimum 3 housing loans or a minimum amount of Rs.1
Crore is sanctioned and disbursed in same project.
b. 0.50% of housing loan subject to maximum of 1 lakh
c. 0.15% of housing loan amount subject to a maximum of Rs.75000
d. Needs HO confirmation

52). Concession in ROI for Low Risk woman customer for HL is

a. 0.05% b. 1% c. Nil d. 2%

53). Generally in how many stagesdisbursement are to be made in housing loan for
construction purpose.
a. 1 b. 2 c. 3 d.4

54). If the entry age is more than the 70 years at the time of availing loan , HL loans can be
sanctioned by
a. Branch b. cannot be sanctioned
c. RO head d. Circle Head CO- CAC & above authorities

Housing loan for YuvaAwas Finance

55). NTH for YuwaAwasRin is:
a. 30% with a minimum of Rs.10000
b. 25% with a minimum of Rs.7500
c. 20% with a minimum of Rs.5000
d. 10% with a minimum of Rs.5000

56). Salaried youth aged between:

a. 21-45 years with 2 years continuous service
b. 21-45 years with1 year continuous service
c. 21-60 years without confirmed service
d. 60 years with 10 years of continuous service

57). In case of loans for purchase of flat under construction, maximum moratorium
period can be permitted:
a. 36 months b. 24 months
c. 15 months d. 6 months

CIBM, Manipal-Multiple Choice Questions – 2020 96

Canara home loan plus
58). Maximum LTV ratio shall not be more than:
a. 60% b. 75% c. 50% d. 80%

59). Eligibility for the canara home loan plus is :

a. Availed housing loan with our bank and run for 6 months with a satisfactoryre payment
track record
b. Loan can be sanc oned for genuine needs.
c. con nued mortgage is to be taken.
d. All the above

Housing Loan For NRIs

60). Minimum NRI status:
a. 2 years b. 3 years c. 1 year d. 4 years

61). Minimum NRI employment:

a. 1 year confirmed service b. 2 years confirmed service
c. 3 years confirmed service d. 4 years confirmed service

Housing –cum-solar loan

62). Loans for solar component:
a. 60% of system cost as per proforma invoice
b. 70% of system cost as per proforma invoice
c. 80% of system cost as per proforma invoice
d. 90% of system cost as per proforma invoice

63). Loan under Canara Solar loan should be repaid within a maximum period of:
a. 2 years b. 3 years c. 4 years d. 5 years

Housing loan scheme for agriculturists

64). Who are eligibleHousing loan scheme for agriculturists
a. Agriculturists b. Dairy & allied activity farmers
c. Planters & Horticulturists d. All the above

65). In case of purchase of site and construction- repayment commences:

a. Within 2 months after completion of house or 24 months from the date of first
disbursement whichever is earlier.
b. Within 1 month after completion of house or 12 months from date of first
disbursement whichever is earlier
c. Within 3 months after completion of house or 18 months from the date of first
disbursement
d. No repayment holida

CIBM, Manipal-Multiple Choice Questions – 2020 97

66). For 3rd Housing loan &subsequent:-
a. Housing loan applicable card + 0.50% for the entire slab
b. Housing loan applicable card rate + 0.25 % for entire slab
c. Housing loan applicable card rate + 1% for entire slab
d. None of the above

Canara site:
67). Maximum repayment period:
a. 10 years b. 5 years c. 7 years d. 3 years

Miscellaneous questions

68) Maximum number of loan disbursements eligible for claiming subsidy under PMAY
(urban)- CLSS HL A/Cs is:-
a) 9 b) 10 c) 7 d) 8

69)The operating model for education loan is broadly divided into:-

1. Marketing & Sourcing of proposals.
2. Pre-sanction exercise
3. Processing and Appraisal
4. Sanction
5. Post-Sanction Documentation
6. Disbursement
7. Follow-up till closure
Out of the above stages, which stages will be carried out at the level of RAH (full fledged
RAH) for loans above Rs. 7.50 lakhs:-
a) from stage no. 3 to7 b) from stage no. 1 to 5
c) from stage no. 5 to 7 c) from stage no. 6 to 7

70) Administrative/legal charges for switching over from MCLR to RLLR for loans under both
MSME and retail sectors are:-
a) @ 0.50% of the liability with a minimum of Rs. 500/- & a maximum of Rs. 50000/-.
b) charges since withdrawn
c) @ 1.00% of the liability with a minimum of Rs. 600/- & a maximum of Rs. 40000/-.
d) @ 2.00% of the liability with a minimum of Rs. 600/- & a maximum of Rs. 50000/-.

71) Revised rate of advance for Swarna Express and Swarna Overdraft is (valid till
31.03.2021) :-
a) 85% of the appraised value b) 70% of the appraised value
c) 90% of the appraised value d) 80% of the appraised value

CIBM, Manipal-Multiple Choice Questions – 2020 98

72) Education loans above Rs.7.50 lakhs (all secured and unsecured loans) will be be
be handled by:-
a) branches
b) RAH for branches mapped to it
c) RO
d) CO

ANSWER KEY
1 d 8 c 15 a 22 a 29 d 36 a 43 a 50 d 57 b 64 d 71 a
2 a 9 c 16 c 23 a 30 b 37 a 44 d 51 a 58 b 65 a 72 b
3 d 10 a 17 a 24 b 31 d 38 d 45 a 52 a 59 d 66 a
4 a 11 b 18 a 25 a 32 a 39 a 46 a 53 c 60 b 67 a
5 d 12 d 19 a 26 b 33 d 40 b 47 b 54 d 61 b 68 a
6 a 13 d 20 a 27 d 34 d 41 a 48 b 55 a 62 c 69 a
7 a 14 d 21 a 28 a 35 b 42 a 49 a 56 a 63 d 70 b

CIBM, Manipal-Multiple Choice Questions – 2020 99

 MSME -MICRO SMALL MEDIUM ENTERPRISES
1) Revised Definition on MSME effective from
a. 01.06.2020 b. 02.10.2006
c.01.07.2020 d. 01.08.2020

2) The investment in plant and machinery for priority sector classification in caseof small
enterprise does not exceed ------- and turnover does not exceed ------
a. Rs.100lacks , Rs.500lacks b. Rs.10 Cr. and Rs.50 Cr.
c. Rs.50Cr, Rs.250 Cr. d.Rs.10 Cr, andRs.500lacks

3) The investment in plant and machinery for priority sector classification in caseof Micro
enterprise does not exceed ------- and turnover does not exceed ------
a. Rs.1Cr., Rs.500lacks b. Rs.10 Cr. and Rs.50 Cr.
c. Rs.50 Cr, Rs.250 Cr. d.Rs.10 Cr, and Rs.500lacks

4) The investment in plant and machinery for priority sector classification in caseof Medium
enterprise does not exceed ------- and turnover does not exceed ------
a. Rs.100lacks , Rs.500lacks b. Rs.10 Cr. and Rs.50 Cr.
c. Rs.50 Cr, Rs.250 Cr. d.Rs.10 Cr, and Rs.500lacks

5) The investment in Equipment for priority sector classification in caseof Micro enterprise
does not exceed ------- and turnover does not exceed ------
a. Rs.1Cr. , Rs.500lacks b. Rs.10 Cr. and Rs.50 Cr.
c. Rs.50 Cr, Rs.250 Cr. d.Rs.10 Cr, and Rs.500lacks

6) The investment in Equipment for priority sector classification in caseof small enterprise
does not exceed ------- and turnover does not exceed ------
a. Rs.100lacks , Rs.500lacks b. Rs.10 Cr. and Rs.50 Cr.
c. Rs.50 Cr, Rs.250 Cr. d.Rs.10 Cr, and Rs.500lacks

7) The investment in Equipment for priority sector classification in caseof Medium

enterprise does not exceed ------- and turnover does not exceed ------
a. Rs.1Cr. , Rs.500lacks b. Rs.10 Cr. and Rs.50 Cr.
c. Rs.50 Cr, Rs.250 Cr. d.Rs.10 Cr, and Rs.500lacks

8) All MSME enterprises are required to register online and obtain ‘Udyam Registration
Certificate’ well before
a. 01/04/2021 b. 31/12/2021
c. 31/03/2021 d.31/03/2020

CIBM, Manipal-Multiple Choice Questions – 2020 100

9. What is the classification criterionfor MSME as per latest Central Govt Notification?
a. Investment P&M b. Investment equipment
c. Annual Turnover d. Investment P&M and Equipment
e. Investment P&M and Annual Turnover
f. Investment P&M/Equipment and Annual Turnover

10. For existing enterprise, calculation of investment in plant and machinery or equipment
will be linked to
a. Self – Declaration of promoter b. ITR of previous year
b. Certificate from CA d. any of above.

11. In case of a new enterprise, where no prior ITR is available, the investment will be
based

a. Self – Declaration of promoter b. ITR of previous year

b. Certificate from CA d. any of above.

12. The purchase (invoice) value of a plant and machinery or equipment, whether
purchased first hand or second hand, shall be taken into account
a. Including GST b. excluding (GST),
c. Certificate from CA. d. any of above.

13.The value of Plant and Machinery or Equipment for all purposes and for all the
enterprises shall mean
a. Written Down Value (WDV) b. Original Invoice value
c. Original invoice excluding GST D. Any of above

14. Calculation of investment in plant and machinery, cost of pollution control, research and
development, industrial safety devices, and such other items as may be
a. Included b. Excluded
c. Specified by GoI every year d. As per choice of customer

15. While calculating turnover of any enterprise for the purposes of classification. We
exclude
a. Export of goods b. Services
C. Export of goods or services both d. None of above.

16. Information as regards turnover and exports turnover for an enterprise shall be linked
to
A. Income Tax Act b. Central Goods and Services Act (CGST Act)
c. GSTIN. D. All the above.

CIBM, Manipal-Multiple Choice Questions – 2020 101

17. All existing enterprises registered under EM-Part-II or UAM shall register again on the
Udyam Registration portal on or after
a. 01/01/2020 b. 01/04/2020
C. 01/07/2020 d. 31/03/2020

18. The existing enterprises registered prior to ________________ shall continue to be valid
only for a period up to ______________
a. 31/03/2020, 31/03/2021 b. 30/06/2020, 31/03/2021
c.31/03/2020, 31/12/2020 d.31/03/2021, 30/06/2020

19. In case of an upward change in terms of investment in plant and machinery or

equipment or turnover or both, and consequent re-classification, an enterprise will
maintain its prevailing status till
a. 31/03/2020
b. b. 31/03/2021
c.Expiry of one year from the close of the year of registration.
d. expiry of one year from 31/03/2021

20. In case of reverse-graduation of an enterprise, whether as a result of reclassification or

due to actual changes in investment in plant and machinery or equipment or turnover or
both, and whether the enterprise is registered under the Act or not, the enterprise will
continue in its present category till
A. 31/03/2020 b. 31/03/2021
c. closure of the financial year d. any of above.

21) The land & building accepted as collateral security under MSME CAP must be
situated in
a. metro area only. b. metro,urban& semi urban area only.
c. metro,urban,semi urban & select rural area. d. none of above.

22) If there is shortfall in Priority sector-MSME advances target, banks have to invest
thefunds maintained by
a. RBI b. NABARD
c. SIDBI d. SEBI

23) Which committee has recommended for Turn Over Method for Working CapitalFinance
a. P R Nayak b. Tandon
c .Ghosh d. Kalyanasundaram

CIBM, Manipal-Multiple Choice Questions – 2020 102

24) The Maximum loan may be sanctioned in case of LaghuUdayamiCredit Card scheme

a. Maximum loan limit is Rs. 5 lakhs b. Maximum loan limit is Rs.10 lakhs

c. Maximum loan limit is Rs. 2 lakhs d. Maximum loan limit Rs. 1 lakhs

25) The processing fees collected by bank from customers of “M/S Online PSB Loans
Limited” is to be…….
a. shared on 50-50 by Bank & OPL b. shared on 75-25 by bank & OPL
C. retained by Bank only d. retained by OPL only

26) As per BCSBI code for MSEs, when loan is adjusted by the borrower, the security
documents are to be returned within

a. 10 days. b. 15 days.
c. 20 days d. 30 days

27) What is a Mudra Loan

a. A loan granted in Indian rupees

b. A loan granted to MSE borrowers

c. A loan granted to non-farm enterprises

d. A loan granted to dairy industry engaged in trading, services, or manufacturing

not exceeding Rs.10lacks

28) Repayment in case of Mudra scheme for Term Loans

a. 3-5 years b. 5-8 years

c. 5-7 years d.7-10 years

29) Under Stand Up India Scheme, Loan quantum is

a. Above 10 lacks to up to 100lacks b. up to 10lacks

c. 10lacks d. up to 100lacks

CIBM, Manipal-Multiple Choice Questions – 2020 103

30) No Collateral security should be insisted for MSE loans uptoRs.

a. Rs. 10lacks b. Rs. 5lacks

c. Rs. 25lacks d. Rs.200lacks

31) Rejection of MSME proposal is done by

a. Respective sanctioning authority b. RO/CO Head
c. With concurrence of NHA d. Next higher authority

32) Due diligence to be done in case of MSME units (eligible if the party approaching the
bank for the first time for above Rs. ------------ which are eligible to be covered under
CGTMSE
a. Rs. 100lacks and Rs.200lacks b. above Rs 10lacks
c. Rs25lacks and up toRs. 500lacks d. Rs. 100lacks and uptoRs. 500lacks

33) Margin In case of Stand Up India scheme

a. 20% b.25%
c. 15% d. 10%

34) The processing fees to be collected for fresh working capital through Bank specific URL
for the proposal submitted through Online PSB Loans Limited is
a. 0.15% b. 0.20%
c. 0.75% d. none of above

35) The maximum loan can be granted under MSE Unnati scheme is
a. Rs. 10lacks b. Rs. 50lacks
c. Rs. 100lacks d. Rs. 25lacks

36) Which of the following units are not eligible under MSE Unnati scheme
a. Schools, Educational Institutions b. Retail trade
c. SHG & JLG d. All the above

37) Margin on Fund based limit in case of Unnati scheme is

a. 10 % b. 15%
c. 20% d. 25%

38) Tenability of working capital under Unnati scheme is

a. 1 years b. 2 years
c. 3 years d. 5 years

CIBM, Manipal-Multiple Choice Questions – 2020 104

39) In case of Start Ups and Early Stage Units, promoters should be graduated from which of
the following institutions
a. II Ts b. IIMs
c. II Sc d. Any of the above.

40) In case of Start Ups and Early Stage Units, the age criteria is
a. 18 to 50 b. 20 to 50
c. 18 to 60 d. 18 to 65

41) Which types of loans can be considered under Startups and Early Stage Units scheme
a. Working Capital b. Term Loans
c. Non Fund Based limits d. all the above

42) In case of Start Ups and Early Stage units, the Margin stipulated in case of Term
loan is
a.20% b.25%
c.30% d.15%

43) Maximum amount of loan in case Early stage units scheme is

a. Rs. 200lacks b. Rs. 500lacks
c. Rs. 100lacks d. Rs. 50lacks

44) In case of Start Ups and Early Stage Units, repayment of term loan is
a. Project cost uptoRs. 100lacks is 5 years b. Project cost uptoRs. 100lacks is 7 years
not exceeding 10 years
c. Project cost of above Rs. 100lacks is 7 years d. both b & c
upto 10 years in exceptional cases not
exceeding 12 years

45) Under MSME Cap the maximum loan amount can be granted
a. Rs. 1000lacks in case Manufacturing b. Rs. 500lacks in case of Service unit
c. Rs. 50lacks d. both a and b are correct

46) Repayment Period for MSME CAP scheme Term Loan is

a. 3 to 7 years b. 5 to 7 years
c. Upto 7 yrs with a max of 10 yrs including moratorium d. 3 to 10 years.

47) Which of the following activities permitted under MSE SMART scheme is
a. Purchase of office premises b. Construction of Office Premises
c. Expansion and Modernization of premises d. All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 105

48) Margin for Fund based limit in case of MSME Cap is
a. 10 % b. 15%
c. 20% d. 25%

49) Margin for Non Fund based limit in case of MSME Cap is
a. 10 % b. 15%
c. 20% d. 25%

50) The maximum loan can be granted under Weaver Mudra scheme
a. Rs. 5lacks b. Rs.3lacks
c. Rs. 1 lacks d. Rs.2 lacks

51) Under Canara Caravan the maximum loan amount can be granted is
a. Rs. 1 cr b. Rs. 25cr
c. Rs. 5 cr d. Rs. 2 cr

52) Repayment Period for Canara Caravan scheme is

a. 60 months inclusive holiday b. 5 to 7 years
c. 5 to 10 years d. 3 to 10 years.

53) Viability Parameters for CGTSME coverage loans of above Rs. 50 lakes, the
promoters contribution with a minimum of project cost
a. 25% b. 20%
c.50% d.30%

54) Age criteria in case of MSE Smart scheme is

a. 18 to 50 b. 20 to 50
c. 18 to 60 d. 18 to 65

55) Banks are not to insist up on collateral security on mandatory basis, when
amount of loan is to Micro and Small Enterprises
a. Up to 10lacks b. Up to Rs. 50lacks
c. Up to Rs. 100lacks d. Up to Rs. 25lacks

56) The Maximum amount of Coverage under CGTSME scheme is

a. Up to 10lacks b. Up to Rs. 50lacks
c. Up to Rs. 100lacks d. Up to Rs. 200lacks

57) The MSME unit eligible for interest subvention scheme for incremental credit
availed incremental funded assistance
a. before 02.11.2018 b. on or after 02.11.2018
c. on or after 01.04.2019 d. none of above.

CIBM, Manipal-Multiple Choice Questions – 2020 106

58) The Maximum amount of Loan under MSME Expo scheme is
a. Up to 10lacks b. Rs. 50lacks
c. Up to Rs. 100lacks d. Up to Rs. 200lacks

59) Repayment Period for Canara MSME expo scheme is

a.1 to 5 years b. Upto 5 years
c.3 years d.2 years

60) Repayment Period for Canara Contractor scheme (Term Loan) is

a. 5 years for other than construction b. 7 years for construction
c. 3 years d. a & b

61) In case of recovery after receipt of claim from CGTMSE (Other than Hybrid Security), the
recovered amount is to be used for?
a. Not to be remitted to CGTMSE b. Remit entire amount to CGTMSE
c. Sharing on a prorate basis d. none of the above.

62) For invoking Guarantee claim, filing of suit is mandatory in respect of CGTMSE
guaranteed loans with aggregate liability of -------------------
a. Rs. 50,000/- & above b. Rs.1,00,000/-
c. Rs.5,00,000/- d. Rs.10,00,000/-

63) What is the margin in case of MSE Vahan Scheme is

a. 20% on Road cost b. 10% on Road cost
c. 15% on Road cost d. 25% on Road cost

64) Repayment period in respect of MSE Vahan for four wheelers

a. 72 months b. 60 months
c. 84 months d. 120 months.

65) The unit eligible under interest subvention scheme for incremental credit to
MSME must have.
a. Valid Udyog Adhar Number (UAN) b. Valid GSTN number
c. a & b both d. none of a & b

66) What is maximum amount of loan under Laghu Udyami Credit Card Scheme
a. Rs. 10lacks b. Rs.25lacks
c. Rs.50lacks d. Rs. 100lacks

67) A Laghu Udyami Credit Card is Valid for

a. 3 yrs. b. 5 yrs
c. 2 years d. 18 months

CIBM, Manipal-Multiple Choice Questions – 2020 107

68) Maximum Loan amount in case of Doctors choice scheme
a. Rs. 5 cr b. Rs.10 cr
c. Rs. 2 cr d. Rs. 1 cr

69) For Doctor Choice scheme, the maximum working capital can be sanctioned is
a. Rs.25 lakes b. Rs. 50 lakes
c. Rs.1 lakes d. Rs. 5 lakes

70) CGFMU Stands for

a. Credit Guarantee fund for Mutual Understanding
b. Credit Guarantee fund for Memorandum of understanding
c. Credit Guarantee fund for Micro Units
d. None of these

71) Repayment period in respect of Doctors choice Term Loan

a. 5 – 7years b. 2 years
c. 8 years d. 3 years

72) Under PMEGP, educational qualification is min. 8thstd pass for setting un projects above
Rs. _ __ lacks under business service sector.
a. Rs.25lacks b. Rs. 15lacks
c. Rs.10 lakes d. Above Rs. 5lacks

73) Maximum Quantum of loan can be sanctioned in case OD MSME (manufacturing)

a. Rs.5 cr b. Rs.2 cr
c. Rs.10cr d. Rs. 1cr

74) Margin in Working capital Limit in case of Canara Udyog scheme

a. 10 % b. 25 %
c. 30 % d. 20%

75) Margin in TL/NFB Limit in case of Canara Udyog scheme

a.10 % b. 25 %
c. 30 % d. 20%

76)Tenability in case Canara Trade Scheme is

a. 3 years b. 1 years
c. 2 years d. 18 months

CIBM, Manipal-Multiple Choice Questions – 2020 108

77) Full form of NCGTC
a. National Credit Guarantee trust Company
b. National Cooperative Guarantee Trust Company
c. National Credit Guarantee Trustee company Ltd
d. National Common Guarantee Trust Company

78) The scheme code of PMMY loan is

a. 74510 b. 74140
c. 75410 d. none of above

79) The product code of PMMY loan to MSME Services is

a. 766 b. 768
c. 786 d. 767

80) The international MSME day is observed on

a. 27 June b. 27 July
c. 27 May d. none of above

81) What is the minimum Current Ratio is required for CANARA GST for Take Over
of Account
a. 1.33% b. 1.25%
c. 1.10% d. 1.00%

82) The MPBF for CANARA GST Scheme is

a. 33.3% of Projected & accepted turnover
b. 25% of Projected & accepted turnover
c. 25% of annual turnover as per GST return.
d. 100% of value of collaterals

83) What is collateral security minimum stipulation under CANARA GST for Low &
Normal Risk account
a. 100% of loan amount b. 133% of loan amount
c. 50% of loan amount d. 75% of loan amount

84) The Penal Interest to be made applicable for passing the 50-74% of turnover
reflected in GST return
a. 0.50% b. 0.25%
c. 0.60% d. none of above

CIBM, Manipal-Multiple Choice Questions – 2020 109

85) As per CGTMSE guidelines: Coverage of Eligible accounts in CGTMSE Portal and payment
of Guarantee Fees to be completed
a. Within last day of subsequent Quarter to the Quarter of sanction.
b. within the last day of the Financial Year in which the loan is granted
c. Within last day of subsequent Month to the Month of sanction.
d. within two days of sanction of loan.

86) The NPA reporting of CGTMSE covered accounts in the CGTMSE Portal to be completed
a. Within last day of subsequent Quarter to the Quarter in which the accounts lipped to
NPA.
b. within 15 days to the subsequent month in which the account slipped to NPA
c. Within last day of subsequent Month to the Month of slipping to NPA.
d. on the day of account slipped to NPA

87) Tie-Up arrangements with Fin-Tech Companies for financing

a. Housing Loan b. Personal loan
c. Micro and Small Enterprises (MSEs) d. all of the above.

88)Tie Up arrangements with Fin-Tech Companies

a. (M/s. Basic Sub-K transactions Ltd. b. M/s Atyati Technologies Pvt Ltd.)
c. M/s Fitch Technologies ltd. D. a & b
e. a, b & c

89)Financing under Tie-Up arrangements with Fin-Tech Companies under product

a. MSME FINTTECH b. MSME SAHARA
c. MSME SUGAM d. MSME SUPPORT

90) Extending loan under MSE &Tie Up arrangements with Fin-Tech Companies (M/s. Basix
Sub-K i Transactions Ltd. and M/s Atyati Technologies Pvt Ltd.) up to
a. inclusive of 100 lakes, b. Maximum Rs.10 Lakes.
c. above 10 lakes d.upto5 lakes

91. RO/CO shall generate BO Report No…………. Product Wise Accounts Opened for cross
verification of the Loans sanctioned and reported by the Branches in the monthly
Returns.
a. 120012/280204
b. 280012/280204
c. 120012/120204
d. 120014/280205

CIBM, Manipal-Multiple Choice Questions – 2020 110

92. All types of credit facilities with credit exposure of Rs………. core and above
(FB+NFB/Clean Limits) to new as well as existing borrowers excluding Retail Lending
Loans are eligible for Pre-release Audit.
a. 5
b. 3
c. 2
d. 1

93. If mortgage is involved and exposure (FB+NFB) is Rs.10 Cr and above, Pre release audit
to be conducted and enforceability certificate as per guidelines to be obtained from a
panel advocate other than the Advocate who had given the LSR. Statement TRUE or
FALSE?
a. False
b. True

94. Which certificate is required to be obtained from Panel Advocate (other than who had
given LSR), In case of Pre- Release Audit?
a. Compliance Certificate
b. Adjudication Certificate
c. Enforceability Certificate
d. All above certificates are required

95. Remuneration to Panel Advocate at the time of pre-release audit, Remuneration with
minimum of Rs………………. /- per mortgage and maximum of Rs………. /- plus applicable
GST for each borrowable account to be absorbed in General Charges.
a. 500 , 1000
b. 1000, 5000
c. 1000, 15000
d. 1000, 10000

96. In case of Limits/Loans of aggregate exposure below Rs.5 crores, who can allot the
credit audit to internal auditors or external auditors.
a. Circle
b. Regional Office
c. Branch
d. Not Applicable

97. The timeline for closure of credit audit report remarks is ……..months from the date of
the credit audit report.
a. 6
b. 1
c. 3
d. 5

CIBM, Manipal-Multiple Choice Questions – 2020 111

98. In the revised system, CMF of all eligible accounts as per HO CIR 139/2020 Annexure IV
shall be submitted ……………. basis in case of Low, Normal and Moderate Risk rated
accounts.
a. Monthly
b. Half Yearly
c. Fortnightly
d. Quarterly

99. A new risk category under Small Value Model is introduced as per HO CIR 190/2020,
Select the appropriate option of the following.
a. Business Risk
b. Financial Risk
c. Demographic Risk
d. Management Risk

100. All monthly sanctions in respect of retail loans are to be reported in_____
a. NB-139
b. NB-140
c. NB-117
d. NB-179

101. All borrowers with aggregate limits of above Rs. 2lacks and up to and excluding Rs.
20lacks are to be risk rated using the Small Value model by the sanctioning branch/office.
Statement True OR False?
a. True
b. False

102. Is Canara Vyapar/loan & advances to traders - Retail Trade covered under Small Value
model?
a. Yes
b. No

103. Which of the following exposures are exempted from the use of Small Value and Manual
Model for risk rating.
a. Loans under Retail lending Schemes (other than Canara Vyapar)
b. Agriculture Loans
c. Staff loans
d. All the above

CIBM, Manipal-Multiple Choice Questions – 2020 112

104. For assigning of Risk Rating, The recommending authority for the credit risk rating shall
be the ……. of the branch in respect of branch sanctions and ……… in respect of RO/CO
sanctions.
a. Branch –in- charge, Credit Manager
b. Credit Manager , Branch –in-charge
c. Officer , Manager –in-charge
d. None of the above

105. In case of periodicity of rating, the rating process is to be carried out for all eligible
borrowers, Within ……. month from the date of receipt of Audited Balance sheet .
a. 2
b. 6
c. 1
d. 12

106. In respect of single transaction term loans (where the party is not enjoying any WC
limits) rating shall be done at what intervals?
a. Half Yearly
b. Annually
c. Fortnightly
d. Monthly

107. Apart from the normal sanction review, a thorough review of taken over accounts other
than retail lending loans is to be carried out at ______months intervals for one year
a. 4
b. 2
c. 3
d. 6

108. The Revised Small value model is applicable for exposures with a limit of above Rs.2
lakes and not more than Rs. 25 lakes w.e.f. 01.04.2020. Statement True or False?
a. True
b. False

109. In respect of the revised Small Value Model , For Individual / Proprietorship borrower,
the rating model is divided into ………. risk categories .
a. 3
b. 4
c. 5
d. 6

CIBM, Manipal-Multiple Choice Questions – 2020 113

110. In respect of the revised Small Value Model, Implementation of new risk category i.e.
Demographics consists of which the following risk parameters?
a. Borrower Age
b. Marital Status
c. Number of dependents(Only financial Dependents)
d. All the above

111. In respect of the revised Small Value Model, For Borrower other than
Individual/Proprietorship Concern, the rating model is divided into … risk categories.
a. 2
b. 3
c. 4
d. 5

112. Revised Small Value Model as per latest HO CIR 190/2020, consist of ……grade scales.
a. 5
b. 7
c. 8
d. 2

113. Under Small Value Model for Demographic Risk, maximum score is ……& weightage
is………%
a. 100 , 50
b. 20, 100
c. 25, 100
d. 100, 20

114. Choose the correct Degree of Safety of Revised Small Value Model, if score is above 85.
a. Good
b. Satisfactory
c. Adequate
d. All above are correct

115. Facility Rating for Corporate Loan Portfolio with Exposure above …..
cores – FB+NFB) introduced w.e.f 18.03.2020 as per HO CIR 144/2020.
a. 2
b. 4
c. 5
d. 6

CIBM, Manipal-Multiple Choice Questions – 2020 114

116. Facility rating is a compliance of the regulatory requirement stated under
Basel III. Do you agree with this?
a. No
b. Yes

117. Banks are required to maintain _________ capital requirement for the borrower who is
having higher facility rating.
a. Lower
b. Higher
c. Moderate
d. All above are correct

118. For Centralized Circles, Facility Rating initiation/approval/confirmation

will be done at which of the following Section / Wing?
a. RM SEC, CO
b. CRM SEC, RO
c. RM WING , HO
d. None of the above

119. For Non-Centralized Circles Exposure up to Rs. …….. crore, initiation / approval
/confirmation of Facility Rating will be done by RM Section Circle Office. Fill the correct
answer.
a. 10
b. 5
c. 20
d. 15

120. Large credit monitoring package is applicable for sanctioned limit (both FB & NFB) of Rs.
_____ Corer and above.
a. 1
b. 2
c. 5
d. 10

121. Guidelines on allocation of ASC (Asset Sub Classification) Code to accounts are
withdrawn. Do you agree with this?
a. No
b. Yes

CIBM, Manipal-Multiple Choice Questions – 2020 115

122. Which of The following CACs are authorized to permit Standby credit in respect of
export credit, where Accounts are under the sanctioning powers of up to RO Head CAC,
Including SME Sulabh linked to RO?
a. RO Head CAC up to moderate risk rated accounts
b. RO Head CAC up to HIGH risk rated accounts
c. RO Head CAC ABOVE moderate risk rated accounts
d. All are correct

123. The facility of issuing guarantee on behalf of third party by earmarking the limit
permitted to our borrower shall be normally permitted selectively to those borrowers to
whom loans/advances granted are classified as which of the following assets ?
a. Loss
b. Sub-std Assets
c. Standard Assets
d. Doubtful Assets

124. All types of retail lending facilities of Rs. ______Cores and above backed by mortgage
(prime/collateral) shall be covered under Pre-release audit
a. 4
b. 1
c. 2
d. 5

125. Stock and receivable audit for moderate and high risk rated accounts with exposure of
Rs. 1 Cores and above is to be conducted________ in an year.
a. Half Year
b. 3 Months
c. 1 Month
d. 1 Year

126. Waiver of display of god own boards shall be considered by the concerned sanctioning
authorities only in deserving cases under the following circumstances.
a. When the goods are stored in the show rooms.
b. When the goods are stored in the rooms where actual business is carried.
c. Both above are correct
d. Both above are In-correct

127. Branches and ROs need to report monthly sanctions are to be reported for review
before ______ of the succeeding month to the next higher office.
a. 7th
b. 15th
c. 20th
d. 30th

CIBM, Manipal-Multiple Choice Questions – 2020 116

128. Upon submission of credit audit report by the auditor, the branch shall ensure
rectification of all the credit observations within a period of _____ days from the date of
submission of report.
a. 15
b. 7
c. 30
d. 45

129. Tie up with agencies for specialized monitoring (ASM) is to be done for effective post
sanction follow-up of all the accounts with aggregate exposure (FB and NFB) of Rs.
______ Crore and above.
a. 50
b. 100
c. 150
d. 250

130. As per monitoring of cross default and other financial covenants, the guidelines are
applicable for Listed Corporate with exposure (FB+NFB) of Rs. ………… & above and listed
MSME borrowers with exposure of Rs …… from our Bank.
a. 50 corer , 1 crore
b. 2 crore , 50 lakh
c. 50 crores , 1 crore
d. All are incorrect

131. Cross Default can be defined as default with one lender that may trigger default with
another lender.
a. True
b. False

132. Fixation of Quick Ratio as one of the Financial Benchmark Parameters for the various
industries, it is applicable in respect of MSME borrowers with total exposure above
Rs………… crore (FB+NFB) from our Bank. Choose the correct answer of the following.
a. 5
b. 20
c. 50
d. 10

133. Fixation of Quick Ratio, is applicable In respect of Corporate other than MSME
borrowers with total exposure above Rs…… crore (FB+NFB) from our Bank.
a. 25
b. 30
c. 50
d. 100

CIBM, Manipal-Multiple Choice Questions – 2020 117

134. Borrowers having stress on account of Covid-19 and classified as standard, but not in
default for more than 30 days with the Bank as on March 1, 2020, Are eligible under the
Resolution framework for personal loans due to COVID-19 related stress?
a. Yes
b. No

135. Credit facilities provided by Banks to their own personnel/staff, Government and
PSU/PSB employees shall not be eligible for resolution under this framework. Statement
True or False?
a. False
b. True

136. Loans against shares, Loans against Deposits and other approved securities are not
eligible to be covered under this Resolution Framework of COVID-19 Issue. Do you agree
with this?
a. Yes
b. No

137. As per Resolution Framework for Personal Loans due to COVID-19-related Stress,
Processing charges 0.1% of the outstanding loan amount eligible for resolution subject to
minimum Rs……. and Maximum Rs……….
a. 500, 1000
b. 1000. 5000
c. 1600, 2000
d. 1000, 10000

138. Resolution Framework for Personal Loans due to COVID-19-related Stress, Invocation of
resolution plan , shall be invoked not later than December 31, 2020 and must be
implemented within ……… days from the date of invocation.
a. 30
b. 60
c. 90
d. 45

139. Resolution Framework for Exposure Other than Personal Loans under stress due to
COVID-19, Invocation of resolution plan , shall be invoked not later than December 31,
2020 and must be implemented within ……… days from the date of invocation.
a. 90
b. 145
c. 30
d. 180

CIBM, Manipal-Multiple Choice Questions – 2020 118

140. As per Resolution Framework for Exposure Other than Personal Loans under stress due
to COVID-19, MSME borrowers whose aggregate exposure to Banks collectively, is Rs 25
Crore or less as on March 1, 2020, Whether can be considered for Resolution
framework?
a. Yes
b. No
ANSWER KEY -
1 C 33 B 65 C 97 C 129 D
2 B 34 B 66 A 98 D 130 C
3 A 35 C 67 A 99 C 131 A
4 C 36 D 68 A 100 D 132 D
5 A 37 C 69 B 101 B 133 C
6 B 38 B 70 C 102 A 134 A
7 C 39 D 71 A 103 D 135 B
8 C 40 B 72 D 104 B 136 A
9 F 41 D 73 C 105 C 137 D
10 B 42 A 74 D 106 B 138 C
11 A 43 B 75 B 107 D 139 D
12 B 44 D 76 C 108 B 140 A
13 A 45 D 77 C 109 B
14 B 46 C 78 C 110 D
15 C 47 D 79 B 111 B
16 D 48 C 80 A 112 C
17 C 49 D 81 D 113 D
18 B 50 D 82 C 114 A
19 C 51 C 83 D 115 C
20 C 52 A 84 B 116 B
21 C 53 D 85 A 117 A
22 C 54 C 86 A 118 C
23 A 55 A 87 C 119 D
24 B 56 D 88 D 120 A
25 C 57 B 89 C 121 B
26 B 58 B 90 B 122 A
27 C 59 C 91 A 123 C
28 C 60 D 92 C 124 D
29 A 61 B 93 B 125 D
30 A 62 A 94 C 126 C
31 C 63 B 95 D 127 A
32 B 64 C 96 A 128 B

CIBM, Manipal-Multiple Choice Questions – 2020 119

 GENERAL ADVANCES
1. Where both internal &external rating are available, pricing shall be based on ………………
rating.
a) Internal Rating
b) Current External Rating
c) Either of A & B
d) Both A & B

2. Loans which are not eligible for Internal/External Rating, the pricing shall be based on
the ……… as per extant guidelines
a) CBPR
b) Facility Rating
c) CIR
d) Cross Default

3. M/s ABC Enterprises with Partneres RAJESH & SURESH are enjoying Credit limits of Rs. 10
Lakh with your branch , The same partneres are the partneres for M/S XYZ Traders ,
Whose limit is Rs. 20 Lakh with your branch. The Risk rating for M/S ABC Enterprises is
Normal risk & it is Moderate for M/S XYZ Enterprises . While applying the risk rating for
the above 2 firms , Which rating would you consider for the purpose of delegation ?
a. Normal Risk
b. Moderate Risk
c. Risk rating to be viewed separately for the firms
d. High Risk

4. The aggregate exposure (credit and investment) to a single borrower or a borrower

group shall not exceed …………… limit stipulated by the Bank for the relevant period.
a. Aggregate limit
b. Total limit
c. Adhoc limit& Aggregate limit
d. The prudential Exposure limit

5. Branches are categorized as Small, Medium, Large, Very Large and Exceptionally Large
branch, based on ……….. business/advances.
a. Average
b. Normal
c. Moderate
d. Agreegate

CIBM, Manipal-Multiple Choice Questions – 2020 120

6. The branch heads / officials upto Scale – III, in branches shall exercise the credit
sanctioning powers as per the ………….of the Branch
a. Categorisation
b. Agreegate business
c. Average business
d. No criteria

7. In the absence of Officer handling credit / credit officer, Branch Manager can allocate
processing of proposals to which Authority in the branch / RO ?
a. Another Officer in the branch
b. RO Head
c. Next Higher authority
d. Cannot allocate

8. Discounting of bills co-accepted by private sector banks&co-operative banks and of bills

under LCs of such banks requires prior permission from which of the following ?
a. Circle Office
b. Regional Office
c. RM Wing
d. Permission NOT required

9. TOD in current account can be permitted byScale IV and above authorities only to the
extent of ………% of the normal delegated powers for sanction of clean facility.
a. 15
b. 10
c. 25
d. 5

10. Which authority, is empowered to permit credit facilities to new borrower clients rated
High Risk ?
a. GM , RM WING
b. DGM, RM WING
c. CAC of the board
d. Circle Head

11. Branch has NO power to open LC having Onerous clause ? Choose the correct answer .
a. Statement is correct
b. Statement is NOT correct

CIBM, Manipal-Multiple Choice Questions – 2020 121

12. All proposals including telephonic sanctions shall be reported/ recorded through web based
package , Choose the correct answer .
a. NB193
b. NB239
c. NB139
d. NB279

13. Credit Managers / Senior Managers in VLBs/ELBs can sanction Gold Loans and VSL/OD
against our own deposits , What is the delegation of power criteria ?
a. Can sanction up to their delegated powers
b. Cannot sanction such type of loans
c. Either a or b
d. Refer to RO Head

14. The unit has defaulted in meeting its payment/repayment obligations to the lender and has
not utilized the finance from the lender for the specific purposes for which finance was
availed of, but has diverted the funds for other purposes . Choose the correct answer of the
following ?
a. It is a case of Willful Default
b. It is Not a case of Willfull Default
c. Absolutely No default
d. None of the above

15. To compute aggregate amount of the limits in respect of fund based facilities, Which
component of the following shall be considered for aggregation ?
a. Actual Outstanding limit
b. Sanctioned Limit
c. Actual o/s or Sanctioned limits whichever is Lower
d. Actual o/s or Sanctioned limits whichever is Higher

16. Credit facilities backed by 100% margin/FLCs backed by 110% cash margin or term
deposits shall be ………… while aggregating the limits to determine the sanctioning
authority.
a. Excluded
b. Included
c. Wipeoff
d. Non of the Above

17. As per categorization of Branches ,What is criteria of Business for very Large Branches
of the following ?
a. Above Rs. 40 Crores UptoRs. 105 Crores
b. Above Rs. 40 Crores UptoRs. 200 Crores
c. Above Rs. 40 Crores UptoRs. 150 Crores
d. None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 122

18. The Credit Approval Committee (CAC) of the Board shall exercise powers with regard to
credit proposal beyond the powers of ED-CAC but upto……… crore for an individual exposure.
a. 1000
b. 1800
c. 800
d. 1600

19. Which type of Proposals of the following sanctionedbut need not be routed through
CAC of the Board ?
a. Sanctioned by CAC
b. Sanctioned by Circle Head
c. Sanctioned by RO Head
d. Sanctioned by MC of the board

20. What is the maximum Delegated Power of CAC at branch level where AGM is the
sanctioning Authority of the branch ?
a. Rs. 5 Crores
b. Rs. 10 Crores
c. Rs. 15 Crores
d. Rs. 25 Crores

21. What is the function of New Business Approval committee ( NBAC) of the following ?
a. To provide Expression of Interest ( EOI ) on the proposals based on strenghth& capability
of the promotors.
b. Not to provide Expression of Interest ( EOI ) on proposals
c. Both not applicable

22. Which of the Following sanctioning authorities can permit takeover of Low risk
borrowal accounts without enhancement subject to compliance of other extant
guidelines ?
a. RO Head (DGM/AGM) CAC and above authorities upto their delegated powers
b. CGM/GM/DGM-CO-CAC and above authorities upto their delegated powers
c. No power
d. None of the Above

23. Where Borrowers rated ‘High Risk’ In exceptional cases, review & extension of tenability of
limits can be permitted …….. and for a period not exceeding ….. months.
a. Once , 3
b. Once, 2
c. Twice , 2
d. Once, 4

CIBM, Manipal-Multiple Choice Questions – 2020 123

24. Who is the Authority who can permit cancellation of limits sanctioned by HO power
Accounts ?
a. CGM/GM-HO-CAC
b. DGM/GM-HO-CAC
c. DM / AGM-HO-CAC
d. None of the above

25. Rejection of export credit proposals shall be immediately reported to which Authority of the
following ?
a. CEO / GM
b. Circle Head
c. R O Head
d. MD & CEO

26. In case of Reporting &Monitoring, which sections responsibility is to place the note in
respect of sanctions made by various CACs at RO and CO (up to DGM powers) and the status of
review done to Circle Head.
a. RM Sec, RO
b. RM Sec, HO
c. CRM Sec, RO
d. RM Sec, CO

27. Need based fresh finance up to Rs……. may be considered by the respective sanctioning
authority to the borrowers who are non-wilful defaulters .
a. 25000
b. 46000
c. 50000
d. 10

28. New borrower clients of the Bank ,Risk rating grade of accounts/ borrower with Low risk
, who is the Authority empowered to sanction of the following ?
a. Respective sanctioning authority upto their delegated powers.
b. Circle Head
c. RO Head
d. None of the above

29. Delegation of powers for sanctioning of loans under consumer segment (based on the
Risk Grade) , If Risk grade is C-1 , Low Risk , Who is the sanctioning Authority of the
following ?
a. Only RO Authority
b. Only CO Authority
c. Respective Sanctioning Authority, including authorities at ROs/COs/HO
d. None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 124

30. The Manager / Senior Manager shall not exercise their sanctioning powers to issue
guarantee in the following cases , Choose the correct answer .
a. Issuance of guarantees in respect of payment of arrears of tax, which are fully secured.
b. Issuance of guarantees in respect of matters under dispute pending in the court, which are
fully secured.
c. Issuance of guarantees in respect of payment of arrears of tax, which arenot fully secured.
d. None of the above

31. Who is the Authority who recommends the Proposals for write off, compromise, waiver of
interest at CO / HO level ?
a. Recovery committee at CO
b. Recovery committee at HO
c. Recovery committee at RO
d. None of the above

32. Who is the Authority who can exercise the powers In the absence of authority CGM-CO-CAC of
the following ?
a. CGM-CO-CAC
b. DGM-CO-CAC
c. AGM-CO-CAC
d. GM-CO-CAC

33. In the absence of CM/AGM (VLB/ELB), the Credit Manager/ Senior Manager of VLBs/ELBs
can exercise sanctioning powers up to ? Choose the correct answer of the following .
a. Up to next higher authority delegated power
b. Up to their delegated powers ONLY
c. Cannot sanction loan
d. All the above

34. In respect of any oral instructions / telephonic permissions, written sanction / confirmation
of the authority empowered to permit should be sought by the concerned branch / official,
by submitting a report in NF ……………?
a. 239
b. 256
c. 254
d. 279

35. Regarding time line, Branch should submit the ratification note to the authorities within
how many days of permitting the facility ?
a. 7
b. 5
c. 10
d. 2

CIBM, Manipal-Multiple Choice Questions – 2020 125

36. In respect of CO power accounts, the CO has to convey orders of the competent authority
ratifying the action of the branch within ….. days from the date of receipt of Ratification
note.
a. 7
b. 10
c. 50
d. 2

37. As per Timelines for completion of sanction review , Closure of review remarks, if any, shall be
completed within next , how many days by the branch.
a. 15 days
b. 30 days
c. 45 days
d. 60 days

38. Designated Branches may negotiate bills (both DP & DA) drawn under LCs
established by our branches to full extent and up to……. the normal delegated power for
secured facility.
a. One time
b. Twice
c. Three times
d. None of the above

39. Where devolved liability is outstanding, borrower shall clear the devolved liability
before expiry of …… days from the date of devolvement.
a. 15
b. 30
c. 45
d. 90

40. DGM-CO-CAC Head of Circle ,having delegated powers to permit advance remittance
without insisting on APG, for Import of Services – Up to USD ……?
a. 10000
b. 50000
c. 100000
d. 200000

41. Issue of solvency certificate beyond the net worth of the borrower, issuing solvency
certificates without obtaining financial statements, etc., should be referred to …….
irrespective of value of the solvency certificates to be issued.
a. RO
b. CO
c. HO
d. None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 126

42. Third party property taken as collateral security, for new borrowal accounts,If mortgage
of third party property is accepted as security for lending their against, Whose prior
clearance is required ?
a. RO Head
b. CO
c. Any of the above
d. None of the above

43. For branches and ROs, monthly sanctions are to be submitted for review before ….. of
succeeding month to the next higher office.
a. 5 th
b. 6 th
c. 7 th
d. Not Applicable

44. Delegation of powers for permitting concession in ROI for Food and Agro Processing
Units up to a limit of Rs 100 Cr from the banking system comes under ............ Specific
Schemes which are under RLLR.
a. Area
b. Non Area
c. Both applicable
d. Not Applicable

45. Apart from the normal sanction review, a thorough review of taken over accounts other
than Retail Lending Loans is to be carried out at …… months intervals for one year. Fill
the correct choice .
a. 3
b. 4
c. 6
d. 9

46. The ………. are severally empowered to permit / approve / ratify variations in the terms
and conditions of any loan / advance granted to employee of the Bank.
a. CO / RO HEAD
b. HO / CO GM
c. RO CO AGM
d. ED or GM (MCCW)

CIBM, Manipal-Multiple Choice Questions – 2020 127

47. Wherever regular limits have been sanctioned to a borrower by branch, Who is the
Authority can permit ADHOC CREDIT facility ?
a. RO HEAD
b. RO HEAD CAC
c. CO HEAD CAC
d. CO HEAD

48. If Adhoc credit facility is permitted for a period of more than 30 days as secured or more
than 15 days as clean, What are the guidelines about Documentation ?
a. Documents as applicable shall necessarily be obtained
b. No Document required
c. Only Oral permission is required
d. All are incorrect

49. Temporary Over limit ( TOL ) , If the facility is permitted for less than 7 days in a month,
Temporary Over limit can be permitted again during the month. Statement TRUE or
FALSE ?
a. True
b. False

50. When an Adhoc Credit Facility/Temporary Over limit outstands beyond the permitted
period, the details of the transaction shall be reported .….. to the next higher controlling
authorities at CO / HO as the case may be .
a. Monthly
b. Quarterly
c. Half Yearly
d. Yearly

51. Powers to modify terms of credit sanction , Who is the Authority can permit
modification for Accounts falling up to the delegated powers of Head of Circle CAC ?
a. ED-CAC
b. GM-CAC
c. AGM-CAC
d. Respective sanctioning Authority

52. What is the sanctioning power for Housing Loans not classified as Commercial Real
Estate for Branch in-charge of Medium Branches ?
a. 20 Lakh
b. 25 Lakh
c. 30 Lakh
d. 15 Lakh

CIBM, Manipal-Multiple Choice Questions – 2020 128

53. Sanction of Housing Loan extended for purchase of house/flat which is more than 20
years old may be permitted by ………?
a. CM of Branch
b. RAH Head
c. Both a & b are correct
d. None of the above

54. Housing Loan to Staff under RBI Housing Loan Scheme, If the repayment period goes
beyond 70 years, minimum NTH shall be retained at …..% with a minimum of Rs. …..p.m
a. 25 , 25000
b. 15, 20000
c. 30, 100000
d. 40, 10000

55. In Case of Branches not attached to RAHs, The Home Improvement Loans can be
sanctioned to Existing Housing Loan Borrowers up to 20% of the total Housing Loan
sanctioned amount by taking mortgage of House property , Up toRs…… lakhs or One Year
Annual Income whichever is less by the Branch-in-Charge.
a. 20
b. 5
c. 15
d. 10

56. CANARA SITE Loans can be sanctioned by the authorityAGM VLB/ELB/ DM-CO-CACs,
What is the sanctioning power ?
a. 50 Lakh
b. 40 Lakh
c. 20 Lakh
d. 30 Lakh

57. In case Housing Loans are permitted by authorities at Head Office, in such cases the
Loans under Home Loan Plus can be permitted by which authority as per scheme
guidelines.
a. Circle Head CO-CAC
b. RO Head CO-CAC
c. DGM Head CO-CAC
d. None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 129

58. …………………..is responsible for overseeing implementation of credit risk management
framework across the Bank and providing recommendations to the RMCB. Select the
correct answer of the following.
a. Credit Risk Committee ( CRC )
b. Credit risk Management Committee ( CRMC )
c. Both are correct
d. None of the above

59. The main responsibility of CRM-Desk ( CREDIT RISK MANAGEMENT DESK) is which of
the following ?
a. Measure, control and monitor credit risk on a bank wide (including foreign offices)
b. Develop the policy and processes framework for effective credit risk mitigation and
collateral management in the Bank.
c. Both a & b
d. None of the above

60. The premium in respect of ECIB (WT-PS) is borne by the ………. and not to be recovered
from exporters.
a. Importer
b. Exporter
c. Bank
d. All the above

61. In case of Project Parameters – Commercial Real estate, Where repayment of the term loan is
made out of lease rentals, Overall DSCR may be stipulated at …….?
a. 2.00
b. 1.00
c. 1.17
d. 1.50

62. Non-fund based facilities can be extended to the share and stockbrokers for which of
the following purposes ? Choose the correct answer.
a. Margin Money Guarantees
b. Security Deposit Guarantees
c. Both are correct
d. None of the above

63. The exposure ceiling (Regulatory limits) prescribed by the RBI in respect of Single borrower will
be ………………….?
a. 20% of eligible capital base.
b. 25% of eligible capital base.
c. 15% of eligible capital base.
d. 30&of eligible capital base.

CIBM, Manipal-Multiple Choice Questions – 2020 130

64. Exposure ceiling on Single/Group exposure limits are linked to internal risk rating grade, If rating
grade is LOW risk , What will be the Prudential limit for single borrower ?
a. 8% of the capital funds
b. 15% of the capital funds
c. 12% of the capital funds
d. 10% of the capital funds

65. In order to have effective monitoring of VSLs permitted by Branches, a BO report is

developed by Retail Asset Wing , Choose the correct B O Report from the following.
a. 280089
b. 280074
c. 280049
d. 280047

66. The exposure ceiling to real estate shall be …..% of the Gross Credit with a sub exposure
ceiling of …..% of gross credit for financing Commercial Real Estate sector.
a. 20, 10
b. 10, 15
c. 5, 25
d. 20, 5

67. Traders, Merchants, Exporters, IT& Software, others etc., who are not having a pre-
determined manufacturing / trading cycle, The method of assessment for WC ( FB ) LIMIT
is applicable Up to what amount ?
a. Up to Rs, 5 crores
b. Up to Rs, 15 crores
c. Up to Rs, 2 crores
d. Up to Rs, 50 crores

68. Pricing of credit linked to Credit Risk Rating (CRR) , for Exposure above Rs.2.00 Crore &upto
Rs.10 Crore , Pricing is based on which of the following ?
a. ECAI rating
b. Scoring Norms
c. Internal Rating ( Small Value Model / Manual Model )
d. Canara Internal Rating model(CIRM Model)

69. Tenability of Working capital limit for for GOLD CARD EXPORTER will be ?
a. 2 Years
b. 5 Years
c. 3 Years
d. 10 Years

CIBM, Manipal-Multiple Choice Questions – 2020 131

70. Tenability of Working capital limit for for Canara Kisan OD, Krishi Mitra Card will be ?
a. 2 Years
b. 3 Years
c. 5 Years
d. 6 Years

71. CMR ( CIBIL MSME RANK ) is made applicable to Existing & New MSME loans with
aggregate Loan quantum (Present & Proposed) of above Rs…..
a) Rs. 5 Lakh
b) Rs. 10 Lakh
c) Rs. 15 Lakh
d) Rs. 100 Lakh

72. CMR ( CIBIL MSME RANK ) measures and predicts the risk of MSMEs on a rank scale of 1
to 10 , CMR 10 is which type of risk category by default ?
a. Lowest Risk of Default
b. Highest Risk of Default
c. Both are correct
d. None of the above

73. Delegation of powers for sanctioning MSME loans based on CMR, for CMR Rank 6& 7, in
case of renewal…..
a. RO HEAD
b. CO HEAD
c. Respective sanctioning Authority ( RSA )
d. Not Applicable

74. Canara Internal Rating Model (CIRM) is applicable for exposures above Rs…. Crores & it
is replaced ………. Model w.e.f 01.04.2020
a. Rs. 5 crores, RAM
b. Rs. 10 crores, RAM
c. Rs. 25 crores, RAM
d. Rs. 2 crores , RAM

75. CIRM is having ……….. Risk Grades including the default grade
a. 9
b. 12
c. 6
d. 8

CIBM, Manipal-Multiple Choice Questions – 2020 132

76. Under CANARA INTERNAL RATING MODEL (CIRM),All NPA accounts will be graded as
……Default Grade .
a. CNR-D
b. CNR –X High risk –II
c. CNR-1 Minimal risk-I
d. All are correct

77. Prime Corporate branch to initiate the Internal Risk Rating in CIRM Model for all
accounts (new & existing) including NBFC, Real estate, software and Share & Stock
Brokers where exposure is above Rs…… Crore.
a. 100
b. 10
c. 2
d. 5

78. For all Accounts where exposure is above Rs. 35.00 Crore ,
Internal Risk Rating in CIRM model shall be initiated by which wing in HO ?
a) RM WING
b) CRRD RM WING
c) CIRM WING
d) None of the above

79. Who is the confirming Authority under CIRM Model, Up to moderate risk where
exposure is up to Rs. 35 Crores. Choose the correct answer.
a. CGM/GM
b. DGM
c. DM/AGM
d. AGM/DGM

80. Accounts where exposure is above Rs. 15.00 Crore and UptoRs. 35.00 Crore, Internal risk
rating in CIRM model to be initiated by ……………
a. CRMR Section, Regional Office
b. RM Section, Circle Office
c. Both are correct
d. Branch

81. Confirmation of Risk rating at Circle level by……….where exposure is above Rs. 2 crores
up to Rs. 15crores. Choose the correct Authority.
a. DGM, overseeing RM sec
b. Agm over seeing RM wing
c. DM overseeing RM wing
d. None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 133

82. Following are the External Credit Assessment Institutions accepted by the Bank, Which
is the Rating agency of the following NOT aInternational Credit Rating Agency?
a. Fitch Ratings Ltd. (FITCH)
b. India Ratings Ltd (Formerly Fitch Ratings India Pvt Ltd. [FITCH])
c. Moody’s Investor Services Ltd. (MOODY’S)
d. Standard & Poor Rating Agencies Ltd. (S&P)

83. Time norms for disposal and processing of loans & advances in respect of HO sanction
submitted by prime corporate branches, The Total TAT FOR Medium Enterprises ,If Loan
is over Rs. 25 Lakh ?
a. 10 Days
b. 20 Days
c. 30 Days
d. 45 Days

84. Commitment charges shall be levied at …..% per annum on the committed line of credit
and unutilized/unavailed sanctioned working capital limits or Short Term limit for
Working Capital purposes. Choose the correct answer.
a. 2
b. 1
c. 1.50
d. 2.50

85. Where party is enjoying both FB & NFB limits, penalty for delayed / Non submission of
QOS / HOS shall be ……% on FB liability and ………….% on the NFB liability shall be
charged.
a. 2 , 0.50
b. 0.50, 1
c. 1, 0.25
d. All above options are incorrect

86. Foreclosure charges/ pre-payment penalties shall NOT be charged in case of all floating
rate term loans sanctioned to individual borrowers including cases where pre-closure /
foreclosure is on account of takeover of liability / switchover of the accounts to other
banks/ FIs etc. Statement is TRUE / FALSE ?
a. False
b. True

87. The revalidation can be permitted by the sanctioning authority during the validity
period of the limits for a maximum period ………………..for Working Capital/ STCL , but only
once . Choose the correct the answer.
a. 3 months b. 6 months
c. 12 months d. 30 Days

CIBM, Manipal-Multiple Choice Questions – 2020 134

88. Which is the Section at RO Handling Review from the following , for the sanctions made
by Credit Manager/ Senior Manager of RAHs up to their delegated power ? Choose the correct
section ?
a. Credit Review & Monitoring Section of RO.
b. Credit Review & Monitoring Section of CO
c. Credit Review & Monitoring Section of HO
d. Above all are not correct

89. Legal Audit of Title Deeds to be conducted during succeeding RBIA immediately after
…… years from the date of first sanction or on crossing of the threshold limit of Rs……..
Crore.
a. 3, 5
b. 5, 3
c. 1, 10
d. 3, 100

90. Who is the REVIEWING Authority from the following , for the sanctions made by Branch
heads in Scale IV ? Choose the correct Authority .
a. Credit Review & Monitoring , sec of RO
b. DGM RO
c. DM RO
d. AGM RO

91. Choose the appropriate collateral securities of the following, which is recognized by the
BASEL II .
a. Securities taken either as primary or collateral security.
b. Offered by borrower or a third party.
c. That aid in hedging the credit exposures against default risk in whole or in part.
d. All the above

92. Stock Audit is exempted for the accounts covered under monitoring by Agencies for
Specialised Monitoring (ASM).Statement is TRUE or FALSE ?
a. True
b. False

93. Valuation of properties (Land and Building) for less than Rs.10 crore , Bank shall obtain
minimum 2 independent valuation reports from 2 empanelledvaluers in respect of loan
accounts, Do you agree with this ?
a. No
b. Yes

CIBM, Manipal-Multiple Choice Questions – 2020 135

94. Valuation of agricultural lands with structures (like farm house/poultry sheds) to be
taken once in how many years ?
a. 4
b. 2
c. 5
d. 3

95. The Credit policy covers the following types of Non Fund Based facilities, like Bank
Guarantees (BGs) , Letter of Credits (LCs) , Letter of Undertaking (LOU , Derivatives, Out
of this , Which facility is not a part of NFB ?Choose the correct answer.
a. Derivatives
b. Letter of Credits (LCs)
c. Letter of Undertaking (LOU)
d. Packing Credit

96. Whether Guarantees can be issued to Central Excise authorities to enable removal of
goods without payment of excise duty or against provisional assessment of excise duty.
a. No
b. Yes

97. At Head Office level, all sanctions of GM HO CAC are to be reported to ….. Wing every
fortnight for review.
a. CAC Wing
b. CAM Wing
c. CRM Wing
d. CGM Wing

98. Guarantee shall be issued on behalf of corporate entities in respect of non-convertible

debentures/bonds or debt instruments issued by such entities. Statement is True or
False ?
a. False
b. True

99. All sanctions in respect of Retail Loansto be reported in monthly register, Choose the correct
NB form of the following.
a. NB 139
b. NB 140
c. NB 179
d. NB 117

CIBM, Manipal-Multiple Choice Questions – 2020 136

100. Branches/Offices shall NOT open LCs only in respect of genuine commercial and trade
transactions of its constituents who have been adhering to the norms/guidelines relating
to the trade and as per delegated powers to the authorities. Statement True or False ?
a. False
b. True

Answer Keys
1 B 21 A 41 B 61 D 81 A
2 C 22 A 42 C 62 C 82 B
3 B 23 B 43 C 63 A 83 D
4 D 24 A 44 B 64 B 84 B
5 A 25 D 45 C 65 C 85 C
6 A 26 D 46 D 66 D 86 B
7 A 27 C 47 B 67 C 87 A
8 C 28 A 48 A 68 D 88 A
9 B 29 C 49 B 69 A 89 A
10 C 30 C 50 A 70 B 90 A
11 A 31 B 51 D 71 B 91 D
12 C 32 D 52 D 72 B 92 A
13 A 33 B 53 C 73 C 93 A
14 A 34 C 54 D 74 D 94 D
15 D 35 D 55 B 75 B 95 D
16 A 36 A 56 D 76 A 96 B
17 C 37 B 57 A 77 C 97 B
18 C 38 B 58 B 78 B 98 B
19 D 39 B 59 C 79 C 99 C
20 A 40 C 60 C 80 B 100 A

CIBM, Manipal-Multiple Choice Questions – 2020 137

 ADVANCES TO EMPLOYEES
1. Who are eligible to get clean OD / DPN …?
a) All confirmed employees who completed 3 years of service
b) All confirmed employees
c) All employees including probationary officers
d) All employees who completed 2 years of service

2. Please match the following category of employees with their entitlement under clean
OD/DPN limit.
1) Scale IV to scale VII -- a) 12 Lakhs
2) Scale I to Scale III -- b) 10 Lakhs
3) Sub Staff / PTE -- c) 6 Lakhs
4) Workmen -- d) 3 Lakhs

a) 1 – a, 2 – b, 3 – d & 4 – c b) 1 – c, 2 – b, 3 – d & 4 – a
c) 1 – a, 2 – d, 3 – b & 4 – c d) 1 – a, 2 – c, 3 – d & 4 – b

3. Who is the sanctioning authority to sanction clean OD / DPN to employees?

a) DM CO b) Scale IV & RO authorities at RO
c) Next higher authority d) Branch Head

4. Whether an employee can avail 3 DPN loans with in the ceiling fixed by Bank.
a) Yes employee can have any no. of DPN accounts at any given point of time.
b) No
c) Yes in Special Cases, can be permitted by Circle Head
d) Maximum No. of DPNs at any point of time is only two.

5. Minimum prescribed NTH for clean OD/DPN to staff is ?

a) 25 % b) 40 % c) 30 % d) 20 %

6. For financing against deposit of Canfin Homes to employees, specific permission is

required from
a) For VLB & ELB, no permission required
b) RO
c) CO
d) Respective Sanctioning Authority can sanction.

7. Under Car loan scheme to employees, for pre-owned vehicle the age of the vehicle
should not be older than _____ years. (Cir 824/2020)
a) 5 yrs b) 3 yrs c) 10 yrs d) 7yrs

CIBM, Manipal-Multiple Choice Questions – 2020 138

8. Sanctioning authority for EHL is ______ and sanction is to be reviewed by _____.
a) RO Head, NHA at CO
b) DM CO,AGM CO
c) AGM CO, DGM CO
d) DM CO, Review not required.

9. Whose income can also be considered under EHL for deciding the quantum / NTH &
repayment capacity?
a) Spouse b) Major Children c) a & b d) legal heirs e) all the above

10. Maximum repayment period stipulated for loan against approved security of NSC/KVP
to staff is
a) 24 months or maturity date whichever is earlier.
b) 36 months or maturity date whichever is earlier.
c) 60 months or maturity date whichever is earlier.
d) 48 months or maturity date whichever is earlier.

11. In i-Lead 2.0 (Inspiring Leads System), leads are generated from following sources
i. Internet banking
ii. Mobile banking
iii. Call Centre
iv. SMS
v. Missed calls
vi. Direct Selling Agents (DSA)
vii. Business Correspondent
a. i,ii,iii,iv,v b. i,ii,iii,vi,vii c. i,ii,v,vi,vii d. I,ii,iv,v,vi

12. Under EHL, the loan together with interest thereon shall be repayable in not more than
360 monthly installments. The principal should be repaid first by ________ monthly
installments and the interest in ______________ monthly installments thereafter.
a. 240, 120 b. 180,180 c. 270, 90 d. 300, 60

13. Quantum of EHL for sub-staff is _______ lakhs.

a. 30 b. 15 c. 20 d. 25

14. Under Employee’s Housing Loan, the NTH shall be ______ % of the gross salary after the
proposed monthly installment of EHL and to be maintained throughout the tenure of the
EHL.
a. 30 b. 25 c. 20 d. 35

CIBM, Manipal-Multiple Choice Questions – 2020 139

15. Quantum of loan to Scale I to III for undertaking repairs/ renovation/ maintenance of
existing house/ flat (within overall entitlement) is
a. 10 b. 15 c. 8 d. 12

16. Quantum of loan for brand new vehicle under Car loan scheme to officer employees is
_____% of the cost of car which includes insurance, registration and taxes subject to
maximum of Rs. ______. (Cir 798/2020)
a) 95,10,00,000/-
b) 95,12,00,000/-
c) 90,12,00,000/-
d) 90,10,00,000/-

17. Quantum of loan for used vehicles under car loan scheme to workmen employees is
_____ % of the value as per approved valuation by the approved qualified automobile
engineer or actual purchase consideration/price or original invoice price whichever is
least, subject to a maximum of Rs. _____. (Cir 798/2020)
a) 80,8,00,000/-
b) 75,8,00,000/-
c) 80,7,50,000/-
d) 80,10,00,000/-

18. Under clean OD/clean DPN facility scheme to ex-servicemen employees, quantum of
loan is ______ Gross salary (drawn in the Bank)+One and half months pension income, if
any, received from GOI and credited to our Bank or the limit, whichever is lower. (Cir
798/2020)
a) Two and Half month
b) Two month’s
c) One and Half month’s
d) One month

19. Quantum of EHL for Officers I to III is _______ lakhs.

a. 50 b.75 c.55 d.60

20. Quantum of loan to Scale IV and above for undertaking repairs/ renovation/
maintenance of existing house/ flat (within overall entitlement) is
a. 10 b. 12 c. 8 d. 15

CIBM, Manipal-Multiple Choice Questions – 2020 140

21. Under EHL for undertaking repairs/ renovation/ maintenance of existing house/ flat , the
loan together with interest thereon shall be repayable in not more than 120 monthly
installments. The principal should be repaid first by ________ monthly installments and
the interest in ______________ monthly installments thereafter.
a. 72, 48 b. 60, 60 c. 84, 36 d. 96, 24

22. The minimum margin for loan against deposit up to Rs. 3 Lakhs to our employees is
______?
a) 15 % b) 10 % c) 5 % d) 20 %

23. What is the prescribed NTH for Car Loan scheme to workmen employees?
a) 30 % b) 40 % c) 25 % d) 20 %

24. Festival Advance to officer employees to be repaid by ________ equal monthly

installments.
a) 10 b) 12 c) 15 d) 11

25. Loan against deposits in the joint names of employee and close relatives are eligible for
concessional interest and margin if…
a) Employee’s name is appearing as first depositor
b) Employee’s name appearing in deposit as second depositor
c) Only if the deposit carry preferential ROI
d) No Concession as above for deposits in Joint name.

ANSWER KEYS –
1 c 11 a 21 c
2 a 12 c 22 c
3 a 13 d 23 a
4 a 14 a 24 b
5 a 15 d 25 c
6 c 16 b
7 a 17 a
8 d 18 c
9 c 19 b
10 d 20 d

CIBM, Manipal-Multiple Choice Questions – 2020 141

 HRD & Staff Matters
1. What is the limit that a Scale I officer can pass cash cheque payment (other than staff)?
a) Up to Rs. 50000/-
b) Up to Rs. 150000/-
c) Up to Rs.200000/-
d) Up to Rs. 250000/
e) Up to Rs.500000/-

2. Bank has introduced a Scheme for presenting Mementos to retiring employees on

Superannuation in recognition of their services to the Bank. Which one of the following is
correct in this matter-?
a) All employees who retire on superannuation shall be eligible under the Scheme.
b) Any other mode of exit from the Bank other than retirement on attaining age of
superannuation is not covered under the Scheme.
c) Employees retiring under Compulsory Retirement are also eligible under the scheme.
d) Employees who retire after completion of 25 years under any mode of retirement is
eligible under the scheme.
e) Only a and b is correct
.
3. Asper PFRDA directive Pension Fund is to be managed by one Manager. In our bank the
pension fund under Defined Contributory Pension Scheme (NPS) is managed by -
a) SBI Pension Fund Ltd.
b) UTI Retirement Solutions Ltd
c) HDFC Pension Management Co Ltd
d) LIC Pension Fund
e) None of the above.

4. All confirmed Officers in Scale-I to Scale-VII are eligible under the Scheme for Providing
Furniture / Fixtures and annual maintenance charge of 5% is eligible after 3 years. The
annual maintenance charge can be accumulated up to-
a) 2 years
b) 3 years
c) 4 years
d) 5 years
e) Can not be accumulated, it will be lapsed.

CIBM, Manipal-Multiple Choice Questions – 2020 142

5. Staff meeting is to be conducted mandatorily on –
a) Last Friday of every month
b) At any day during the month
c) Third Friday of every month
d) Third Saturday of Every Month
e) Last Thursday of every month.

6. Which one of the following is not correct in case of milestone award-

a) The award given is to employees who has completed 25 years of service.
b) Maximum Cost of the award is Rs.5000/-
c) Ex-servicemen will also be taken into account provided they complete a minimum of 10
years of unblemished service in the Bank and total of 25 years of service including the
Defence Service.
d) The award given is to employees who has completed 25 years of meritorious service.
e) Only a, b and c is correct.

7. Information regarding the Bank shall be disclosed externally to media, investors &
analysts only by the Authorized Spokespersons in accordance with the relevant internal
policies. Who is the Authorised Spokespersons of our bank ?
a) All GMs
b) C & MD
c) Eds
d) C & MD and Eds
e) All of the above

8. Livery is provided in terms of the provisions of the Bipartite Settlement and the
members of the Subordinate Staff are required to wear the same while on duty.
Periodicity of woollen livery is – (186/2020)
a) 3 sets in 2 years
b) 2 sets in 3 years
c) 1 set in 3 years
d) 1 set in 2 years
e) 2 sets in 1 year

9. Cost reimbursement of News Paper for workmen employees is –(186/2020)

a) 90 % of cost of one news paper
b) 80% of cost of two news paper
c) 100% of the cost of one news paper
d) 90 % of the cost of two news paper
e) 80% of the cost of one news paper

CIBM, Manipal-Multiple Choice Questions – 2020 143

10. The employees of our Bank may make a written complaint to the Designated
Authoritywishing to raise a concern about any allegations of corruption or of misuse of
office that could jeopardize the interest of the Bank. It is known as-
a) Fraud Alert
b) Vigilance Officer
c) Eagle Eye View
d) Whistle Blower
e) Fraud Investigation

11. All confirmed officer may purchase brief case/leather bag/office bag of their choice
claim reimbursement from bank once in –(720/2016)
a) 5 years
b) 4 years
c) 3 years
d) 2 years
e) None of the above

12. In KRA rating matrix marks obtained from 60 to below 75 is named as-
a) Good
b) Very Good
c) Average
d) Outstanding
e) Below Average

13. Bank employees are required to go on Mandatory Leave on account of a tool of

preventive vigilance and as an operational risk management measure. What is the
number of days of mandatory leave ?
a) 10 working days in a single spell in each financial year
b) 7 working days in a single spell in each calendar year
c) 10 working days in a single spell in each calendar year
d) 7 working days in a single spell in each financial year
e) 5 working days in a single spell in each calendar year

14. In order to avail PL, Employees are required to give --------days’ notice
a) 15
b) 30
c) 7
d) 10
e) 45

CIBM, Manipal-Multiple Choice Questions – 2020 144

15. What is the maximum period that an employee can avail under sabbatical leave?
a) 6 months
b) 12 months
c) 18 months
d) 24 months
e) 36 months

16. What is the maximum number of days under Paternity leave?

a) 30
b) 60
c) 45
d) 20
e) 15

17. Compensatory off to officer working on Holidays to be availed within how many days?
a) Within 30 days from the day of working
b) At any latter day
c) Within the calendar year
d) Within 6 months from the day of working
e) Within 3 years from the day of working.

18. Every officer employee shall every year submit a return of his movable/immovable and
valuable property including liquid assets like shares, debentures as on 31st March of that
year to the Bank before –
a) 30th September of the year
b) 30th April of the year
c) 31st December of the year
d) 15th April of the year.
e) 30th June of that year.

19. Special Assistants and Temporary Supervisors canpass independently, manually or

online, cash instruments up to
a) Rs. 15000/-
b) Rs.50000/-
c) Rs. 150000/-
d) Rs. 200000/-
e) Rs. 100000/-

CIBM, Manipal-Multiple Choice Questions – 2020 145

20. The insurance coverage under IBA medical insurance scheme for clerical cadre is –
a) 4 lakh
b) 3 lakh
c) 2 lakh
d) 10 lakh
e) 7.5 lakh

21. For voluntary retirement what is the minimum years of qualifying service in case of
workmen employee-
a) 15 years
b) 25 years
c) 20 years
d) 10 years
e) 30 years

22. In case of Quick Mortality account the aggregate liability of all accounts should be –
a) Above Rs.15 lakh
b) Rs.15 lakh and above
c) Above Rs.25 lakh
d) Rs.10 lakh and above
e) Rs. 5 lakh and above

23. SWO B are entitled of passing and cash payment of all cheques/withdrawal
forms/bankers' cheques/giftcheques, etc.-up to-(314/2019)
a) Rs.10,000/-
b) Rs.15000/-
c) Rs.25000/-
d) Rs.20000/-
e) Rs.50000/-

24. Scale I officers are delegated to pass staff cheque up to-

a) Any amount
b) Rs.1.0 lakh
c) Rs.1.5 lakh
d) Rs.2.0 lakh
e) Rs.15000/-

CIBM, Manipal-Multiple Choice Questions – 2020 146

25. On completion of 6 mandatory courses under CanDLE within 30.09.2020 what is the
bonus mark in APAS-
a) 5
b) 10
c) 2
d) 1
e) No bonus mark.

26. Which one is not true with respect to SWO A and SWO B-
a) Have no passing power for transactions in own account.
b) Have no passing power for transactions resulting in TOD.
c) Have no passing power for withdrawals through 'Withdrawal Forms'
d) Have no passing power in all transactions in minor subsidiary GL Heads
e) Have no passing power in staff account.

27. Life certificate in respect of ex employees, pensioners and their family pensioners is to
be submitted every year during the month of –
a) November
b) December
c) January
d) March
e) September

28. The name of the portal through which online life certificate can be generated is –
a) JeevanAnand
b) JeevanPramaan
c) Life
d) JeevanDhara
e) Jeevan Life

29. Which of the following is correct for to become eligible under compassionate
appointment-
a) Employees of our bank whodies while in service (including death by suicide).
b) Employee has retired on medical grounds due to incapacitation before reaching the age
of 55 years.
c) Employee is been missing and has left over service of more than two years.
d) Only a and b are correct
e) All a, b and c are correct.

CIBM, Manipal-Multiple Choice Questions – 2020 147

30. Performance Appraisal Report [PAR] in respect of workmen employees is to be
uploaded as at –
a) 31st March every year
b) 30th September every year
c) 30th Jun Every year
d) 31st December every year.
e) No Performance Appraisal for workmen employee

31. What is the amount of death relief under Canara Bank Golden Jubilee Staff Welfare fund
?
a) Rs.20000/-
b) Rs.30000/-
c) Rs.50000/-
d) Rs.100000/-
e) Rs.150000/-

32. Mobile phones were provided to all the Executives from Scale IV to VI, Branch heads and
section heads/eligible officers. As per the scheme, replacement of mobile phones is to be
done once in ------years of purchase.
a) 5 years
b) 3 years
c) 2 years
d) 10 years
e) 7 years

33. Fixing cut-off limit to Scale I Officers of our Bank for authorizing cash cheque payments
posted as branch in charge-
a) Up to Rs.200000/-
b) Staff account up to Rs.10000/-
c) Up to Rs. 250000/-
d) No cut off limit-Full power
e) Up to Rs. 500000/-

34. Maximum amount payable for mementos to retiring Sub Staff employees on
superannuation is-
a) Rs.25000/-
b) Rs.15000/-
c) Rs.20000/-
d) Rs.10000/-
e) Rs.5000/-

CIBM, Manipal-Multiple Choice Questions – 2020 148

35. As per the staff accountability policy , loan limit up to Rs10.00lacs slips to NPA , the
incumbent in charge have to submit a report to RO with in a period of ….. from the close
of the calendar quarter
a) 7days
b) 15days
c) 30days
d) 45 days
e) 60 days

36. As per staff accountability policy in the credit matter, the sanctioning authority is
responsible for the followings. Find out the incorrect one?
a) Adherence of the policy norms in force.
b) Adhering to the delegated power.
c) Clearly specifying the Terms & Conditions of sanction.
d) Ensuring the End use of the funds
e) Ensuring reporting of the sanction to the next higher authority for review.

37. Which of the following is correct in connection with Scheme for Reimbursement of
expenses incurred towards purchase of cleaning materials to Officer Employees-
a) The reimbursement is permitted to Officers staying in the Bank owned quarters and Bank
leased quarters.
b) The reimbursement is permitted to officers staying in the quarters on personal lease
c) The reimbursement is permitted toOfficer Employees who are staying in their own
houses.
d) Only a and b is correct
e) All a, b and c is correct.

38. Job Rotation should normally be affected once in-

a) 3 months
b) 12 months
c) 6 months
d) 9 moths
e) 2 Months

39. Net Take Home(NTH) salary for drawing Festival Advance is –

a) 25% of gross salary after deducting the instalment of FA
b) 24% of gross salary after deducting the instalment of FA
c) 10% of gross salary after deducting the instalment of FA
d) 20% of gross salary after deducting the instalment of FA
e) FA can be sanctioned without referring to NTH

CIBM, Manipal-Multiple Choice Questions – 2020 149

40. The colour of the uniforms for HKPs is-
a) White drill
b) Khakhi Drill
c) Blue
d) Yellow
e) Green

41. Continuous Non wearing of uniforms by subordinate cadre of employees while on duty
shall constitute –
a) Minor misconduct
b) Major Misconduct
c) Dismissal from service
d) No effect
e) Warning Letter.

42. The reimbursement of expenses towards newspaper subscription shall be against

declaration on quarterly basis and the employee shall submit claim for reimbursement in
HRMS package-
a) Before 7th of the succeeding Month
b) Before 10th of the succeeding month
c) Before last day of the succeeding month
d) Before last day of the succeeding quarter
e) Before 15th of the succeeding quarter

43. What is the yearly medical aid reimbursable for workmen employee-
a) Rs.1800/-
b) Rs.2000/-
c) Rs.2200/-
d) Rs.8000/-
e) Rs.3000/-

44. What is the insurance amount under Group Personal Accident Insurance Policy for Scale
I officer in case of death for Rest of India (excluding Jammu and Kashmir)-
a) Rs.480000/-
b) Rs.400000/-
c) Rs.500000/-
d) Rs.550000/-
e) Rs.600000/-

CIBM, Manipal-Multiple Choice Questions – 2020 150

45. Employees are eligible for additional sick leave after completion of how many years ?
a) 25 years
b) 20 years
c) 15 years
d) 24 years
e) 30 years

46. What is the halting allowance in Area I for Scale I, II, III ?
a) Rs.1300/-
b) Rs.950/-
c) Rs.850/-
d) Rs.1000/-
e) Rs.1100/-

47. What is the Halting Allowance for workmenwhere the population is above 5 lakh but
less than 12 lakh-?
a) Rs.700/-
b) Rs.500/-
c) Rs.450/-
d) Rs.350/-
e) Rs.600/-

48. What is the amount eligible for other expenses on transfer of Scale I, II, III officerson
declaration basis -?
a) Rs.15000/-
b) Rs.9000/-
c) Rs.12000/-
d) Rs.20000/-
e) Rs.18000/-

49. In case of work from home who is the approver authority for Scale I/II/III ?
a) Overseeing Executive of HRM Section, CO
b) AGM of Circle Office
c) RO Head
d) Circle Head/ Wing Head
e) CGM of HR Wing

CIBM, Manipal-Multiple Choice Questions – 2020 151

50. What is the amount under employee suggestion scheme for team ?
a) Rs.10000/-
b) Rs. 8000/-
c) Rs.6000/-
d) Rs.5000/-
e) Rs.3000/-

51. What is the cash incentive for successful completion of courses under capacity building-
a) Group I- Rs.6000/- ,Group II- Rs.10000/- ,Group II- Rs.15000/-
b) Group I- Rs.7000/- ,Group II- Rs.11000/- ,Group II- Rs.16000
c) Group I- Rs.8000/- ,Group II- Rs.12000/- ,Group II- Rs.17000
d) Group I- Rs.9000/- ,Group II- Rs.13000/- ,Group II- Rs.18000
e) Group I- Rs.10000/- ,Group II- Rs.14000/- ,Group II- Rs.19000

52. Which one of the following is not a minor penalty?

a) Censure:
b) Withholding of increments;
c) Withholding of promotion;
d) Recovery from pay or such other amount as may be due to him of the whole or part of
any pecuniary loss caused to the bank by negligence or breach of orders;
e) Reduction to a lower grade or post

53. Under EASE 3.0 agenda how many group of subjects is there under Job Family?
a) 10
b) 3
c) 12
d) 6
e) 8

54. CGRS stands for-

a) Central Grievances Redressal System
b) Canara Grievances Redressal System
c) Civil Grievances Redressal System
d) Canarite Grievances Redressal System
e) Core Grievances Redressal System

CIBM, Manipal-Multiple Choice Questions – 2020 152

55. What is the amount reimbursable where Bank vehicles are not available for Scale VI
posted at administrative unit , other Than RO Head ?
a) Rs.15000/-
b) Rs.20000/
c) Rs.25000/-
d) Rs.30000/-
e) Rs. 35000/-

56. The sanctioning Authority will be answerable if leave application is pending

beyond……working days?
a) 5 days
b) 3 days
c) 7 days
d) 10 days

57. At what rate conveyance is paid to the Visually challenged and orthopedically
handicapped employees ?
a) 1% of their basic pay subject to a maximum of Rs,500/-
b) 2% of their basic pay subject to a maximum of Rs,500/-
c) Rs.500/- per month
d) 5% of their basic pay subject to a maximum of Rs,400/-
e) Rs.1000/- per month.

58. Who is the Author of the book A Banking Odyssey- The Story of Canara Bank ?
a) Sri M S Kamat
b) Sri M MKamat
c) Sri M V Kamat
d) Sri M R Kamat
e) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 153

 ANSWER KEYS –
1 C 17 A 33 D 49 D
2 E 18 E 34 C 50 D
3 A 19 B 35 C 51 A
4 B 20 B 36 D 52 E
5 C 21 C 37 E 53 A
6 A 22 B 38 C 54 D
7 D 23 D 39 A 55 C
8 C 24 B 40 B 56 A
9 A 25 D 41 B 57 D
10 D 26 E 42 D 58 C
11 A 27 A 43 C
12 A 28 B 44 E
13 C 29 E 45 D
14 A 30 D 46 B
15 D 31 C 47 E
16 E 32 B 48 A

CIBM, Manipal-Multiple Choice Questions – 2020 154

 PRUDENTIAL NORMS
1. Asset Classification is being carried out for:
a. Income Recognition
b. Provisioning
c. Compliance on prudential norms
d. Timely recovery action
e. All the above

2. Banks classify NPA accounts into:

a. 2 categories i.e., doubtful & loss assets
b. 3 categories i.e., sub-standard, doubtful and loss assets
c. 4 categories i.e., special mention accounts, sub-standard, doubtful and loss assets
d. 4 categories i.e., standard, sub-standard, doubtful and loss assets

3. A loan account becomes NPA:

a. Where principal or interest become due and not recovered for 85 days
b. Where cash credit account has been overdrawn for more than 90 days
c. Where the bill purchased/discounted has become overdue and continues to be overdue
for 89 days
d. Where amount remains unpaid for less than two crop seasons for short duration crops
and less than one crop season for long duration crops in case of agriculture account.

4. Cash credit or OD a/c does not become out of order but becomes NPA directly:
a. Where the limit has not been renewed for more than 6 months after it had fallen due for
renewal
b. Where principal and /or interest in TL has become due and not paid by borrower for 75
days
c. Where the cash credit account has been out of order for 60 days.
d. Where the bill purchased /discounted has become overdue and continues to be overdue
for 87 days.

5. In a cash credit account, the party has not given due stock statement for the last 9
months. The account is showing a balance of Rs. 2.56 Lakh with a limit of Rs. 3 Lakh and
DP 2.80 Lakh based on the last stock report. The party has paid interest regularly. The
account is otherwise conducted as per terms of the sanction. The account classification
shall be:
a. Standard Account
b. Out of order account
c. Sub-standard account
d. At the discretion of the bank.

CIBM, Manipal-Multiple Choice Questions – 2020 155

6. Assets which do not disclose any problem and do not carry more than normal risk and
also generates income for the Bank are called ………………………...
a. Performing Assets/Standard Assets
b. Non-Performing Assets
c. Sub-Standard Assets
d. Loss Assets

7. The period of NPA in Sub-standard category:

a. 12 months
b. 28 months
c. 15 months
d. 24 months

8. After sale of NPA for how many days, Loan Account will be treated in standard category
with the purchaser bank?
a. 90 days
b. 60 days
c. 45 days
d. 30 days

9. In case of Agricultural advances where the repayment is based on the crop income,
interest/installment of principal, the over dues are within --- crop seasons in case of short
duration crops and --- crop season in case of long duration crops then such assets are
treated as Performing Assets
a. 1, 2
b. 3, 4
c. 2, 1
d. 4, 3

10. If one account of the borrower has become sub-standard, which of the following
statement will be correct:
a. His other accounts in all branches of the bank shall be treated as NPA even though
regular
b. His other accounts in other banks shall be treated NPA if it is a consortium account
c. His other accounts in other branches shall not be treated NPA if running regular
d. His other accounts including against the maturity of bank deposit shall be treated as NPA
and provided for

CIBM, Manipal-Multiple Choice Questions – 2020 156

11. In case of agriculture loans, the period for which the account can remain irregular
(standard) before it is classified as sub-standard is:
a. 90 days for agriculture accounts
b. 2 or 1 crop season, for agriculture loans
c. 2 or 1 crop seasons for agriculture accounts where recovery is based on crop
d. 90 days for all indirect agriculture accounts and two or one crop season for all direct
agriculture loans

12. Which of the following accounts can qualify to become NPA if it starts showing
irregularity?
a. Loan against FDR in which balance exceeds the sanctioned limit but is within the present
value of security
b. Entire loan to a farmer service society (FSS) given by the bank for on-lending where few
loans (and not full) given by FSS to farmers, have become NPA
c. Interest debited to the account for more than 90 days but has not become due for
payment in a house loan account
d. Interest debited to a cash credit account during quarter and not recovered within 90
days from end of the quarter

13. A farmer has been allowed a crop loan and term loan for irrigation equipment and
tractor purchase. He produces short duration crops like paddy and wheat but failed to
repay the due instalment. The loan will become NPA if position continues for:
a. One harvest season
b. One crop season
c. Two harvest seasons
d. Two crop seasons

14. X was given a demand loan of Rs. 2 Lac against NSCs of Rs. 4 Lac at 12% interest rate.
Bank has debited Rs. 25183/- as interest in the account in one year ended March 31,
2017 which the borrower has not paid. In such a situation,
a. Account shall be treated NPA for non-service of interest.
b. Account to be treated standard but interest not to be credited to income
c. Interst will be taken to income whether paid or not since it is a loan against NSC
d. Account will be in performing category and interest will be taken to income till the
balance is within the value of security.

CIBM, Manipal-Multiple Choice Questions – 2020 157

15. Where the account is running irregular and it is a govt. guaranteed account, which of
the following statement is NOT correct?
a. If account is guaranteed by state government, it will be treated like any other account for
NPA purpose.
b. In state government guaranteed account, asset classification and provisioning will be
made like other NPA accounts
c. In central government guaranteed account asset classification and provision will be made
like in other NPA accounts
d. In central government guaranteed account income recognition will not be made if
interest is not received.

16. Which among the following is NOT correct in the context of a loss account?
a. If the security depletes and value remains less than 10% of the balance, account shall be
treated as loss account
b. Loan account is to be written off by banks if not provided for fully
c. If bank decides not to write off, 100% provision is required
d. Loan account can be restructured

17. If an account is sub-standard or doubtful, it can be classified as standard

a. From the same day, when entire due amount is recovered
b. From the close of the year during which the due amount is recovered
c. After 12 months, from date of recovery
d. If it is re-structured account, immediately on restructuring

18. In line with the international practices on prudential norms for banks, an asset is
defined as non-performing
a. When the customer fails to repay the loan installment in time.
b. When the Asset ceases to generate income for the bank.
c. When the customer dies.
d. When there is no demand for the product marketed by the borrower.

19. When an account has become NPA, interest debited earlier and not recoveredshouldbe:
a. Reversed
b. Fully provided
c. Not to be recovered
d. Not to be provided

20. When the guarantee will become NPA where the guarantee is fully secured by the
Central Government?
a. When the Central Government rejects the claim, when the guarantee is invoked
b. When the Central Government rejects the claim, when the guarantee is not invoked
c. When the Central Government accepts the claim, when the guarantee is invoked
d. When the Central Government accepts the claim, when guarantee not invoked

CIBM, Manipal-Multiple Choice Questions – 2020 158

21. No NPA account with liability of Rs. 1 Cr. And above can outstand in the books of the
bank beyond a period of …. Without initiating action for recovery
a. 60 days
b. 90 days
c. 120 days
d. 180 days

22. Conditions for Doubtful Asset category:

a. More than 18 months in Sub-standard
b. More than 12 months in Sub-standard
c. More than 24 months in Sub-standard
d. More than 36 months in Sub-standard
23. Which of the following accounts need not be classified as NPAs as long as they maintain
required/adequate margin:
a. Loan against surrender value of LIC policy
b. Our Bank deposit
c. NSCs/KVPs/IVPs
d. All the above

24. An NPA account had total liability of Rs. 15 Lac that include an overdue amount of Rs.
6.10 Lac which the party paid on 22/10/2015. The amount will become standard asset
from:
a. 22/10/2015
b. 31/10/2015
c. 30/11/2015
d. 31/12/2017

25. Consortium Account will be classified as NPA based on:

a. The individual bank’s recovery
b. The other bank’s recovery
c. Average recovery of all the banks
d. Consortium leader bank’s recovery

26. Legal expenses in NPA account will be debited to:

a. P&L Account
b. Savings Bank Account
c. GL account
d. Suspense account

CIBM, Manipal-Multiple Choice Questions – 2020 159

27. An account where the regular / adhoc credit limits have not been reviewed/ renewed
within a period of ……….. days from the due date / date of adhoc sanction will be treated
as NPA:
a. 60 days
b. 90 days
c. 45 days
d. 180 days

28. An NPA is purchased by Bank from HF company, if there is no recovery up to what

period, the purchased asset will be in standard category in purchased bank records:
a. 30 days
b. 60 days
c. 45 days
d. 90 days

29. In an NPA, classification will move from standard to doubtful asset without going
through sub-standard asset if
a. Erosion in value of security is >50% and available security is >10% of the liability
b. Erosion in value of security is >40% and available security is >10% of the liability
c. Erosion in value of security is >30% and available security is >10% of the liability
d. Erosion in value of security is >20% and available security is >10% of the liability

30. A cash credit account / a running limit will become NPA

a. If it remains out of order for more than 90 days
b. If the interest is overdue for more than 30 days
c. Immediately on becoming out of order
d. If the account is not renewed/reviewed for 120 days

31. In a term loan account the due date for installment payment was 30.11.2017 which the
borrower did not pay. The provision as at 31.03.2018 is to be made at ….% of the
outstanding amount:
a. 60% if it is secured and 50% if it is unsecured
b. 40% if it is secured and 30% if it is unsecured
c. 30% if it is secured and 40% if it is unsecured
d. 15% if it is secured and 25% if it is unsecured

32. The company has submitted the stock statement with delay of 6 months on 31.12.2019.
The status of the account is NPA on:
a. 30.09.2019
b. 31.12.2020
c. 31.03.2020
d. 30.06.2020

CIBM, Manipal-Multiple Choice Questions – 2020 160

33. The term “out of order” is applicable in case of which types of account as far as IRAC
norms are concerned.
a. Term Loans
b. Gold Loans
c. OD/CC
d. Vehicle Loans

34. Where there is problem with recovery, a standard account moves to sub-standard to
doubtful to loss category with a specified waiting period. But where there is loss of
security, standard account directly becomes doubtful account or loss account. Whether
true or false?
a. True
b. False
c. Not Sure
d. Branch in-charge decides

35. When value of security in a loan account is less that its balance, which of the following is
NOT correct:
a. If it is 10% or less of the value at the time of sanction and account becomes NPA, it shall
be treated as sub-standard unsecured
b. If it is less than 50% while account was fully secured initially, account shall be treated as
doubtful
c. If it is less than 10% while account was fully secured initially, account shall be treated as
loss account
d. If it is less than 90% while the account was fully secured initially the account shall be
treated as loss account

36. Which of the following is NOT correct asset classification status of a cash credit account
as on 31.03.2017
a. If it became out of order on 28 Dec., 2016, it will be treated as sub-standard
b. If it became out of order on 11 Jan, 2017, it will be treated as standard asset
c. If it became out of order on 11 Nov., 2015, it will be treated as doubtful above one year
category
d. If it became out of order on 11 Nov., 2014, it will be treated as doubtful above one year
but up to 3 years category.

37. In case of large industrial project, where the interest is payable after moratorium and it
is debited periodically and not recovered immediately, the amount will not become NPA
a. True
b. False
c. As decided by the branch
d. As decided by the borrower

CIBM, Manipal-Multiple Choice Questions – 2020 161

38. An NPA account had total balance of Rs. 10 Lac including a due amount of Rs. 4.50 Lac.
The party paid it on 22 Aug, 2019. The account would be categorised as standard asset
w.e.f.:
a. 31 March 2020
b. 30 Sept., 2019
c. 31 Aug., 2019
d. 22 Aug., 2019

39. Opinion regarding classification of crop being short duration or long duration is taken by
the bank concerned in each state :
a. True
b. False
c. Not sure
d. Branch in-charge decides

40. Accounts overdue for a period of more than 30 days but less than 90 daysare also
classified as
a. Special Mention Account
b. Black Flagged Account
c. Red Flagged Account
d. Yellow Flagged Account

41. What is the rate of provision in case of doubtful asset which is doubtful for 24 months:
a. 100% of unsecured portion + 60% of the secured portion
b. 100% of unsecured portion + 40% of the secured portion
c. 100% of unsecured portion + 30% of the secured portion
d. 100% of unsecured portion + 20% of the secured portion

42. The account is classified as doubtful for two years now. Total dues in the account isRs.
80 Lac. Security value is Rs. 100 Lac. Provision to be made for
a. 60% of Rs. 80 Lac i.e., Rs. 48 Lac as it is DA-2 upto 3 years
b. 40% of Rs. 80 Lac i.e., Rs. 32 Lac as it is DA-2 upto 3 years
c. 30% ofRs. 80 Lac i.e., Rs. 24 Lac as it is DA-2 upto 3 years
d. 20% of Rs. 80 Lac i.e., Rs. 16 Lac as it is DA-2 upto 3 years

43. An account became out of order on 22 Jan., 2017 for a balance of Rs. 10 Lac. What will
be the amount of provision as on 31 March 2018 if the value of security is Rs. 7 Lac?
a. Rs. 2 Lac
b. Rs. 1.50 Lac
c. Rs. 3.7 Lac
d. Rs. 4 Lac

CIBM, Manipal-Multiple Choice Questions – 2020 162

44. Which among the following is NOT correct statement in the context of provision on sub-
standard accounts
a. If account is secured, provision at 15% and if unsecured, provision at 25%
b. For unsecured portion, provision is 100% and for secured portion 10%
c. If no security was taken at the time of sanction of loan, provision is 25%
d. If security was taken at the time of sanction of loan and still intact, provision of 15% is to
be made

45. Which of the following is true In respect of loan account classified as doubtful assets,
the provision is made:
a. Within a range of 25-100% separately for the secured portion of balance and unsecured
portion of the balance
b. If account is upto one year doubtful, provision is 20% for the entire amount whether
secured or unsecured
c. If account is doubtful more than one year to three years, provision is 30% for the entire
amount whether secured or unsecured
d. If account is more than three years doubtful, provision is 100% including for the balance
secured by CGTMSE guarantee

46. If an account became sub-standard on 30 March, 2015 and the balance is Rs. 10 Lac and
security value is Rs. 6 Lac. The amount of provision as on 31.03.2019 is:
a. Rs. 5 Lac
b. Rs. 6 Lac
c. Rs. 7.5 Lac
d. Rs. 10 Lac

47. The account became doubtful on 12 Feb, 2016. The balance is Rs. 6 Lac. The amount of
provision as on 31.03.2019 will be
a. Rs. 1.2 Lac
b. Rs. 1.8 Lac
c. Rs. 3 Lac
d. Rs. 6 Lac

48. In an account bank has to recover Rs. 10 Lac from borrower which include Rs. 2 Lac as
recorded /suspended interest. The security value is Rs. 6 Lac. For this more than one
year but upto three years doubtful account the provision as on 31.03.2017 will be
a. Rs. 1.8 Lac
b. Rs. 4.4 Lac
c. Rs. 4.5 Lac
d. Rs. 8 Lac

CIBM, Manipal-Multiple Choice Questions – 2020 163

49. Which of the following is NOT correct with regard to provision to be made on standard
loan assets
a. Teaser home loans, capital market exposure, personal loans 1%
b. General provision on global balances 0.4%
c. Direct agriculture and all SME loan accounts 0.25%
d. Commercial real estate exposure 1%

50. A sub-standard asset would be one, which has remained NPA for a period less than or
equal to --- months.
a.6 b.12
c.18 d.24

51. A loan account XYZ Ltd. Became doubtful on 2 April 2016. What would be the provision
percentage as on 31.03.2019 if the balance is fully secured
a. 40% of Balance Outstanding
b. 50% of Balance Outstanding
c. 60% of Balance Outstanding
d. 75% of Balance Outstanding
e. 100% of Balance Outstanding

52. Which among the following is NOT correct in connection with the sale/ purchase of
NPAs within banks
a. Seller bank can sell the NPA account irrespective of period of NPA
b. Seller bank can sell the NPA account on ‘without recourse’ basis only
c. Seller bank shall remove NPA account from its book only on receipt of full amount
upfront
d. Seller bank can buy the account from the purchaser bank if loan with the buyer bank has
become a standard account.

53. An unsecured substandard loan would mean a loan which was sanctioned without
security or with security value of ….% or less of the outstanding ab-initio
a. 10%
b. 15%
c. 25%
d. 50%

54. Bank A and Bank B have allowed loan on consortium basis. Loan is irregular with Bank A
for 120 days and with Bank B for 18 months. The classification of account would be
a. Sub-standard for both the banks
b. Sub-standard for Bank A and doubtful for Bank B
c. Doubtful for both the banks
d. In consortium account, NPA rules are not applicable

CIBM, Manipal-Multiple Choice Questions – 2020 164

55. In a more than one year but less than three years doubtful account, with balance of Rs.
20 Lac the security covers the balance to the extent of Rs. 15 Lac. The provision
percentage as on 31.03.2019 would be
a. 40% of the entire balance
b. 40% of the unsecured balance 100% for the secured balance
c. 100% for the entire balance
d. 100% for the unsecured balance and 40% for the secured balance

56. The due date of a bill is 28 Dec., 2017. But it is not paid and position continues as such
The provision in the account as on 31 March, 2019 would be
a. 10%
b. 25%
c. 30%
d. None of the above

57. In a term loan account, the due date for instalment payment was 30 Nov., 2018 which
the borrower did not pay. Provision as at 31 March, 2019 is to be made at …% of the
outstanding amount
a. 15%, if secured
b. 20% if secured
c. 30% if unsecured
d. 25% if unsecured
e. a and d above

58. A doubtful more than one year upto three years category loan of Rs. 20 Lac has been
sold by Bank A to Bank B for Rs. 14 Lac on 16 Jan., 2017. Bank B will make a total
provision of Rs. ….. as on 31.03.2017
a. 0.25%
b. 0.40%
c. 10%
d. 20%
e. 40%

59. Which among the following is NOT correct in case of provision against standard
accounts
a. Provision is to be made on global balance
b. Provision not to be deducted to arrive at net NPA provision
c. Provision to be shown under schedule-5 ‘other liabilities and provision’ in the balance
sheet
d. For a general credit card account, provision is 0.25%

CIBM, Manipal-Multiple Choice Questions – 2020 165

60. The provisioning for the unsecured portion of the guarantee in case of a doubtful asset
a. 100%
b. 80%
c. 120%
d. 60%

ANSWER KEYS –
1.e 11.c 21.a 31.d 41.b 51.a
2.b 12.d 22.b 32.a 42.b 52.d
3.b 13.d 23.d 33.c 43.b 53.a
4.a 14.d 24.a 34.a 44.b 54.b
5.c 15.c 25.a 35.d 45.a 55.d
6.a 16.d 26.a 36.c 46.d 56.b
7.a 17.a 27.d 37.a 47.d 57.e
8.a 18.b 28.d 38.d 48.b 58.b
9.c 19.a 29.a 39.b 49.a 59.d
10.a 20.a 30.a 40.a 50.b 60.a

CIBM, Manipal-Multiple Choice Questions – 2020 166

 BASEL & RISK MANAGEMENT
1. What is CRRD?
a) Credit Risk Research Desk
b) Credit Risk Reference Desk
c) Credit Risk Rating Desk
d) Credit Risk Review Desk

2. As per Risk Management Policy of the Bank all the exposures are classified in to …………
streams.

a) 6
b) 4
c) 5
d) 10

3) In case of loans guaranteed by Central Government and supported by Gazette

Notification, Bank can extend loan up to ………..% of Tier-I Capital.
a) 16
b) 14
c) 15
d) 10

4) Clearance from GM RM Wing (CGRO) shall be obtained for any fresh/ enhancement in
exposure to Single / Group borrower (including NBFCs) once the applicable single / group
borrower exposure exceeds ……………. % of the ceiling fixed.
a) 70
b) 80
c) 90
d) 100

5) CRMD means
a) Credit Review Management Department
b) Credit Risk Management Department
c) Credit Risk Monitoring Department
d) Credit Review Monitoring Department

6) CRMD acts as the CRCU independent of the credit origination and credit administration
activities. CRCU means
a) Credit Risk Control Unit
b) Credit Review Control Unit
c) Credit Risk Calculating Unit
d) Credit Risk Confirmation unit

CIBM, Manipal-Multiple Choice Questions – 2020 167

7) MVT will independently review and evaluate all credit risk models prior to their
implementation, as well as on an on-going basis, to assess their adaptability for the
intended purposes and to identify the limitations if any.
a) Model Validation Team
b) Model Validation Technology
c) Model Validation Test
d) Model Validation Technique

8) CCR is defined as the risk that the counterparty to a transaction could default before or at
the final settlement of the transaction’s cash flows and is the primary source of risk for
derivatives and securities financing transactions.
a) Consumer Credit Risk
b) Customer Credit Risk
c) Counterparty Credit Risk
d) Contractor Credit Risk

9) Unlike a Bank’s exposure to Credit Risk through a loan, where the exposure to credit risk
is unilateral and only the lending bank faces the risk of loss, the counterparty credit risk is
…………………. in nature i.e. the market value of the transaction can be positive or negative
to either counterparty to the transaction and varying over time with the movement of
underlying market factors.
a) Bi-lateral
b) Trilateral
c) Quadrilateral
d) Multilateral

10) Risk Adjusted Return on Capital (RAROC) is a risk-based profitability measurement

framework for analyzing risk-adjusted financial performance and to provide a consistent
view of profitability across businesses. It helps in risk based pricing and optimal capital
allocation to resources. RAROC measures the return generated per unit of capital
deployed. RAROC is a
a) Net Revenue / Required capital
b) Profit / Required capital
c) Income / Required capital
d) Operational Income / Required capital

11. As per Accounting Standard ………. of ICAI, ‘parties are considered to be related, if at any
time during the reporting period, one party has the ability to control the other party or
exercise significant influence over the other party in making financial and/or operating
decisions
a) 10 b) 75
c) 18 d) 50

CIBM, Manipal-Multiple Choice Questions – 2020 168

12. If the total eligible provisions are over and above the Expected Loss amount, the excess
can be included in Tier 2 capital up to a maximum of ……. % of credit risk weighted assets
subject to RBI approval.
a) 3
b) 0.35
c) 0.60
d) 1.4

13. All products are required to be approved by ………………………………(CANP) duly

deliberated & recommended by the Systems and Procedures Committee of RM Wing
a. Committee for Approval of New Products
b. Committee for Appraisal of New Products
c. Committee for Audit of New Products
d. Committee for Assessment of New Products

14. In Counterparty Credit Risk an economic loss would occur if the transactions or portfolio
of transactions with the counterparty has a ……………. economic value at the time of
default. Bank’s
a) Positive
b) Negative
c) Neutral
d) None of the above

15. MRTWG is responsible for considering detailed aspects of all credit risk models (either
newly developed, enhanced or vendor models). MRTWG means?
a) Model Revalidating Technical Working Group
b) Model Review Technical Working Group
c) Model Risk Technical Working Group
d) Model Rating Technical Working Group

16. LGD is Bank’s economic loss upon the default of a debtor/borrower. What is LGD
a) Loss Given Default
b) Loan Gone Default
c) Loan Got Default
d) Loan Given Default

17. Probability of Default (PD) is Probability that the borrower will default within a ………….
year horizon
a) 1
b) 2
c) 3
d) 4

CIBM, Manipal-Multiple Choice Questions – 2020 169

18. Fresh exposure to “BBB & below” NBFC accounts shall not be taken by the Bank. In case
of NBFC MFI, the Bank may take exposure, selectively, to accounts rated upto “BBB” by
recognized ECAI. However, exposure to such entity shall be capped at Rs …………. Crore
per borrower
a) 20
b) 25
c) 30
d) 15

19. In respect of any risk category for single borrowers, the exposure upto the ………….% of
the Tier I Capital may be permitted by the Board.
a) 20
b) 25
c) 30
d) 15

20. Wherever both internal and external ratings are available, the ………. ratings shall be
taken in to consideration for determining the exposure ceiling for the single borrower
entity.
a) Internal
b) External
c) CRISIL
d) CARE

Answer Key –
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
c a c c b a a c a a c c a a b
16 17 18 19 20
a a d a b

CIBM, Manipal-Multiple Choice Questions – 2020 170

 Balance Sheet Analysis
1). Gross working capital is equal to:
(a) Total assets
(b) Total liabilities
(c) Total current assets
(d) Total current liabilities
(e) 1 and 2

2). Negative net working capital implies that:

(a) Long-term funds have been used for long term assets
(b) Long term funds have been used for current assets
(c) Shortterm funds have been used for fixed assets
(d) Short term fundshave been used for current assets
(e) None of theses

3). Positive net working capital implies that:

(a) Liquidity position is not comfortable
(b) Current ratio is less than one
(c) Current assets are partly financed out of long term sources
(d) All the above
(e) None of the above

4). In X Ltd., current assets are twice that of current liabilities. Net working capital is
Rs.55000. The amount of current assets is:
(a) Rs.100000.
(b) Rs.45000
(c) Rs.110000
(d) Rs.165000
(e) None of the above

5). which of the following industries generally has lowest level of working capital;
(a) Retail shop
(b) Chemical manufacturing
(c) Aero planeManufacturing
(d) Petroleum
(e) All the above

6). Which of the following is classified as current liability?

(a) Inventory
(b) Marketable securities
(c) Provision for Tax
(d) Investments
(e) All the above

CIBM, Manipal-Multiple Choice Questions – 2020 171

7). Operating cycle is a technique of:
(a) Working capital management
(b) Receivables Management
(c) Inventory management
(d) Creditors management
(e) None of the above

8). Which of the following is not a component of operating cycle?

(a) Debtors
(b) Term loan
(c) Creditors
(d) Raw material
(e) All the above

9). Which of the following is not included in the operating cycle?

(a) Fixed assets level
(b) Raw material stock
(c) Finished goods stock
(d) Creditors payment period
(e) None of theses

10). Which of the following ratios would indicate liquidity shortage?

(a) Gross profit ratio
(b) Current ratio
(c) Return on net worth
(d) Debtors turnover ratio
(e) Return on Investment

11). In current ratio current assets are compared with:

(a) Current profit
(b) Current liabilities
(c) Fixed assets
(d) Equity share capital
(e) Long term loans

12). A current ratio is less than one means:

(a) Current liabilities<current assets
(b) fixed assets > current assets
(c) Current assets<current liabilities
(d) Share capital>current assets
(e) Current assets = current liabilities

CIBM, Manipal-Multiple Choice Questions – 2020 172

13). Which of the following is not required for preparation of fund flow statement?
(a) Current year balance sheet
(b) Current year income statement
(c) Current year Cash flow statement
(d) All the above
(e) None of the above

14). Which of the following is not source of funds?

(a) Long term loan taken
(b) Issue of debentures
(c) Purchase of assets
(d) Non-operating income
(e) All the above

15). Which of the following is not application of fund?

(a) Purchase of investment
(b) Sale of assets
(c) Redemption preferential share capital
(d) Payment of dividend
(e) All the above

16). Funds flow statement is necessarily prepared under the guidelines issued by;
(a) SEBI
(b) RBI
(c) GOI
(d) BR act
(e) None of the above

17). In cash flow statement, depreciation is added back because;

(a) Depreciation is not a real expense
(b) Depreciation is not out flow of cash
(c) depreciation is not tax deductable
(d) Depreciation is only estimation
(e) None of the above

18). Cash flow statement helps in studying in the movements of:

(a) Profit
(b) Working capital
(c) Liquidity
(d) Current assets
(e) All the above

CIBM, Manipal-Multiple Choice Questions – 2020 173

19). All listed companies are required to prepare:
(a) Cash flow statement
(b) Funds flow statement
(c) Statement of affairs
(d) All of these
(e) None of these

20). Definition of cash in the cash flow statement includes:

(a) Only cash balances
(b) Cash, bank, and marketable investments
(c) Cash and bank balances
(d) Cash, Banks, and debtors
(e) None of the above

21). In accounting parlance, cash flow means;

(a) Net profit after tax
(b) Net profit+ Dividend paid out
(c) Net profit + Non-cash expenses
(d) All the above
(e) None of the above

22). What does DSCR measures:

(a) Total borrowing vis-a vis net worth
(b) Short term borrowings versus net worth.
(c) Total cash generation vis-a vis repayment obligations
(d) Capacity to service interest on term borrowings
(e) All the above

23). To evaluates the profitability of business project is:

(a) Payback period
(b) Average rate of return
(c) Net present value
(d) Internal rate of return
(e) All the above

24). The following methodsdoes not consider the time value of money
(a) Pay back method
(b) Average return method
(c) IRR and NPV
(d) 1 & 2
(e) 1, 2, &3

CIBM, Manipal-Multiple Choice Questions – 2020 174

25). which of the following statement are true in respect of IRR?
(a) It is the discount rate that makes NPV of the project equals to zero
(b) An investment should be accepted if its IRR is higher than the cost of capital
(c) IRR takes into account time value of money
(d) Only 1 and 2 are correct
(e) 1, 2, and 3 are correct

26). What is the breakeven point signifying;

(a) It is the point of time when cash inflows match cash outflows
(b) It is the point of production when there is no profit and no loss
(c) It is the point of production when variable costs are equal to fixed cost
(d) All the above
(e) None of the above

27). What does IRR indicate:

(a) It is the discounted value of future cash flows
(b) If cost of funds is lower than IRR, the project is viable
(c) It is the maximum rate of interest that bank can charge for project finance
(d) All the above
(e) None of the above

28). The difference between total current assets and current liabilities, other than bank
borrowings is known as;
(a) Net working capital
(b) Gross working capital
(c) Working capital Gap
(d) Projected net working capital
(e) None of the above

29). The factors that influence the working capital in business is:
(a) Nature of business
(b) Size of the business
(c) Production policy
(d) Seasonal variation
(e) All the above

30). In working capital finance, the term MPBF means:

(a) Minimum permissible bank finance.
(b) Maximum permissible bank finance
(c) Modified permitted bank finance
(d) None of the above
(e) All the above

CIBM, Manipal-Multiple Choice Questions – 2020 175

31). In working capital finance, the cash budget statement would comprise of projected
receipts and payments for the next 12 months on account of:
(a) Business operations
(b) Non business operations
(c) Cash flow from capital accounts
(d) Sundry items
(e) All the above

32). Which one of the following group is classified as current assets?

(a) Cash & bank balances, term deposit with banks, sundry debtors, inventory and prepaid
expenses
(b) Furniture & Fixtures and investment in subsidiary companies
(c) Capital and free reserves
(d) None of the above

33). Financing syndication is for the purpose of

(a) Overcoming the liquidity problem of the bank
(b) Borrower will be comfortable with more number of banks
(c) Spreading of risk involved in extending large loans
(d) All the above
(e) None of the above

34). Total Assets= Rs.20/-; Current Liabilities=Rs.10/- Lac: Capital & Reserves=Rs.4/- Lac:
How much Debt Equity Ratio
(a) 1.80
(b) 1.50
(c) 1.65
(d) 1.75
(e) None of the above

35). A deferred payment guarantee is:

(a) Performance Guarantee
(b) Financial Guarantee
(c) Co-acceptance facility
(d) All the above
(e) None of the above

36). The LC is opened with security of another LC is:

(a) Back to back LC
(b) Red clause letter of credit
(c) Green clause of letter of credit
(d) Omnibus letter of credit
(e) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 176

37). Temporary finance provided to a project until long term arrangements are made is
known as
(a) Long term loan
(b) Personal loan
(c) Infrastructure loan
(d) Bridge loan
(e) None of the above

38). A statement of showing the forecast of cash receipts, cash disbursements, and net cash
balances over period of time on roll over basis is known as
(a) Cash budget
(b) Cash flow statement
(c) Funds flow statement
(d) Capital budgeting
(e) None of the above

39). The person in whose favor the guarantee is issued called

(a) Issuer
(b) Banker
(c) Indemnifier
(d) Guarantor
(e) Beneficiary

40). While appraising investments where the future cash flows are not certain, the following
method is followed:
(a) Net present value method
(b) IRR method
(c) Sensitivity analysis
(d) Pay back method
(e) None of the above

41). In which of the following facilities bank is at disadvantage in verifying the end use of
funds.
(a) Bills purchase
(b) Cash credit
(c) Letter of credit
(d) All the above
(e) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 177

42). Pricing of loan should be related to:
(a) Interbank borrowing rate
(b) RBI refinance rate
(c) Risk rating and credit quality of the borrower
(d) All the above
(e) None of the above

43). A list of planned capital expenditure prepared usually annually known as

(a) Capital budget
(b) Cash budget
(c) Planned expenditure
(d) Performance budget
(e) None of the above

44). Banks uses cash budget method while financing working capital in case of
(a) Seasonal Industries, software development
(b) Construction activity
(c) Film production
(d) Only 1 & 2
(e) 1, 2, & 3

45). Total assets = Rs.20/- Lac: Net worth= Rs.3/- Lac; Debt equity ratio is=3:1, how much is
the current ratio if fixed assets = Rs.8/- Lac
(a)1.80 (b)1.50
(c)1.65 (d)1.75
(e)None of the above

46). Total liabilities= Rs.10/-Lac, fixed assets=Rs.4/- Lac, Noncurrent assets = Rs.1/-Lac.
Which of the following statement is correct?
(a) Net worth= Rs.4/-Lac
(b) Debt Equity ratio=1.40
(c) Current ratio is less than 1
(d) Current assets Rs.5/- Lac
(e) None of the above

47). As per new companies act 2013 “money received against share warrants” will be having
the following features:
(a) Only publicly listed companies can issue share warrants
(b) Share warrants are eligible for dividends
(c) It is only eligible for interest
(d) 1 and 2
(e) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 178

48). As per new companies act 2013 “share application money pending allotment” in
balance sheet is classified as:
(a) Shareholders fund
(b) Current liability
(c) Term liability
(d) This is neither part shareholders fund nor is a liability. As such it is placed between
shareholders fund and the liabilities
(e) None of the above

49). The payback method has several short comings. Which of the following is not one of
them?
(a) It does not take into account the time value of money
(b) The choice of payback period is arbitrary
(c) Only those cash flows are considered which falls in the payback periods
(d) It takes into account the time value of money
(e) All the above

50). All recurring expenses are:

(a)Revenue expenses (b)Capital expenses
(c)Deferred revenue expenses (d)Deferred capital expenses
(e)None of the above

51). What is the difference between the current ratio and the quick ratio?
(a) The current ratio includes inventories and the quick ratio does not.
(b) The current ratio does not include inventories and the quick ratio does.
(c) The current ratio includes physical capital and the quick ratio does not.
(d) The current ratio does not include physical capital and the quick ratio does.
(e) None of these.

52). Which of the following statements is not true with respect to the matching strategy?
(a) All assets should be financed with permanent long term capital.
(b) Temporary current assets should be financed with temporary working capital.
(c) Permanent current assets should be financed with permanent working capitals.
(d) Long term assets should be financed from long term capital.
(e) None of these

53).Which of the following working capital strategies is the most aggressive?

(a) Making greater use of short term finance and maximizing net short term asset.
(b) Making greater use of long term finance and minimizing net short term asset.
(c) Making greater use of short term finance and minimizing net short term asset.
(d) Making greater use of long term finance and maximizing net short term asset.
(e) None of these

CIBM, Manipal-Multiple Choice Questions – 2020 179

54).Which of the following is not a metric to use for measuring the length of the cash cycle?
(a) Acid test days.
(b) Accounts receivable days.
(c) Accounts payable days.
(d) Inventory days.
(e) None of these

A borrowing firm submits to the commercial Bank, the balance sheet with following
particulars:
Rs. Inlacks
Capital & Reserves 24 Term Loans 16
Trade Creditors 12 Expenses Payable 8
Bank Cash Credit 20 Fixed Assets 24
Security for Electricity 4 Preliminary Expenses 2
Stocks 30 Bills book debts 14
Cash & Bank balances 6 Net Profits 6
Sales 120
On the basis of above information, please work the following ratios?

55). Current Ratio:

(a) 1.10:1
(b) 1.15:1
(c) 1.20:1
(d) 1.25:1
(e) 1.33:1

56). What will be the Quick Ratio?

(a) 0.85:1
(b) 0.75:1
(c) 0.50:1
(d) 0.40:1
(e) 0.30:1

57). The debt equity ratio would be:

(a) 2.1:1
(b) 1.76:1
(c) 1.37:1
(d) 1.10:1
(e) 0.73:1

CIBM, Manipal-Multiple Choice Questions – 2020 180

58). Debtor’s velocity ratio would be:
(a) 1.4 months
(b) 1.6 months
(c) 1.8 months
(d) 2.0 months
(e) 2.2 months

59). What will be stock turnover ratio?

(a) 3 times
(b) 4 times
(c) 5 times
(d) 5.5 times
(e) 6 times

A partnership firm wants to shift their dealing from another Bank to your branch and
provides the following details about their balance sheet:

Partner’s Capital 16 General Reserves 4

Loan from NBFC 12 Loan from friends 6
Bank Limit 28 Bills Payable 5
Trade Creditors 7 Provisions 2
Land & Building/Plant 24 Vehicles 8
Investment in NSCs 8 Pre-operative expenses 2
Stocks 14 Consumable Stores 2
Bills Receivables 8 Sundry Debtors 10
Cash In Hand 4 Sales 200
Purchases 160 Profits included in reserves 3

On the basis of the above data:

60). What is the current ratio?

(a) 1.39:1
(b) 1.22:1
(c) 1.10:1
(d) 1.00:1
(e) 0.90:1

61). What is the acid test ratio (Quick Ratio)?

(a) 0.87:1
(b) 0.71:1
(c) 0.60:1
(d) 0.52:1
(e) 0.45:1

CIBM, Manipal-Multiple Choice Questions – 2020 181

62). What will be the debt equity ratio?
(a) 2.23:1
(b) 2.04:1
(c) 1.72:1
(d) 1.28:1
(e) 1.00:1

63). The stock turnover ratio would be:

(a) 14 times
(b) 14.3 times
(c) 15.7 times
(d) 16.7 times
(e) 17.6 times

64). The debtor velocity ratio (or debt collection period) is

(a) 1.92 months
(b) 1.76 months
(c) 1.61 months
(d) 1.44 months
(e) 1.08 months

65). The creditor velocity (credit payment period) ratio would be

(a) 2.10 months
(b) 1.88 months
(c) 1.55 months
(d) 0.90 months
(e) 0.83 months
Key Answers -
1 c 11 b 21 c 31 e 41 b
2 c 12 c 22 c 32 a 42 c
3 c 13 c 23 e 33 c 43 a
4 c 14 c 24 d 34 b 44 e
a a 15 b 25 e 35 b 45 b
6 c 16 e 26 b 36 a 46 d
7 a 17 b 27 b 37 d 47 d
8 b 18 c 28 c 38 a 48 d
9 a 19 a 29 e 39 e 49 d
10 b 20 b 30 b 40 e 50 a
51 a 52 a 53 a 54 a 55 d
56 c 57 e 58 a 59 b 60 e
61 d 62 e 63 b 64 5 65 d

CIBM, Manipal-Multiple Choice Questions – 2020 182

 NPA,RECOVERY& LEGAL ASPECTS

1. Which one of the following is non- legal recovery method?

a. Invoking the provisions of Revenue Recovery Act
b. Winding up the company
c. Invoking claim with ECGC/CGTMSE
d. Filing insolvency petitions wherever desirable
e. Referring the cases to Loka dilate for settlement through conciliation.

2. The Recovery committee at RO shall review individually the accounts with liability of
_________ slipped to NPA subsequent to last review.
a. Rs. 2lacks and above
b. Less than Rs. 2lacks
c. Only Rs. 2lacks
d. Above Rs. 2lacks
e. Rs. 1 lac and above

3. Recovery committee at Circle Office shall submit the proceedings of the meeting to
_________ for information / review within _________ days of conducting the meeting.
a. RL&FP wing/SAM wing HO/ 10 days
b. SPD wing HO / 7 days
c. RL & FP wing / SAM wing HO / 7 days
d. Credit Monitoring wing HO / 7 days

4. Respective Delegated authorities shall permit transfer of files to Recovery Section, filing of
suit, waiver of legal action, and other recovery action within___________Of NF606/607
submitted by the branch
a. 60 days
b. 15 days
c. 30 days
d. 45 days
e. 7 days

5. Who can defer action under SARFAESI considering the justifiable reason, only under
deserving cases.
a. CGM CAC HO
b. GM CAC CO
c. DGM CAC RO
d. Circle Head CAC and above authority
e. ED CAC

CIBM, Manipal-Multiple Choice Questions – 2020 183

6. In a cash credit account, the party has not given due stock statement for the last 9
months. The account is showing a balance of Rs. 2.56lacks with a limit of Rs. 3lacks and DP
2.80lacks based on the last stock report. The party has paid interest regularly. The account
is otherwise conducted as per terms of sanction. The account classification shall be
a. Standard Account
b. Sub-standard account
c. Doubtful account
d. Loss account

7. In respect of Consortium Account or joint financing of financial asset/s by more than one
banks/financial institutions. Which of following statement is not true
a. Bank can independently issue demand notice under section 13(2)
b. Bank can independently issue section 13(4) notice
c. Bank independently cannot issue demand notice under section 13(2)
d. The mandatory requirement of 60% consensus is only at the time of issuing section 13(4)
notice.

8. Representation or objection of demand notice, the authorized officer shall communicate

the reasons for not accepting the same to the concerned borrower/guarantor/mortgagor
within _____
a. 7 days
b. 14 days
c. 30 days
d. One week
e. 15 days

9. Reserve price fixed under SARFAESI first time depending upon the market condition, the
nature of securities etc., at a price of
a. Not lesser than 90% of the market value of the property
b. Not lesser than 80% of the market value of the property
c. Not lesser than 75% of the market value of the property
d. Not lesser than 85% of the market value of the property

10. Valuation from two independent valuers on the panel (SARFAESI) should be obtained in
case of
a. Where ever the value of any one of the individual mortgaged/hypothecated security is
more than Rs. 5 Cr.
b. Where ever the value of any one of the individual mortgaged/hypothecated security is
more than Rs. 2 Cr
c. Where ever the value of any one of the individual mortgaged/hypothecated security is
more than Rs. 1 Cr
d. Where ever the value of any one of the individual mortgaged/hypothecated security is 50
Lakh and above.

CIBM, Manipal-Multiple Choice Questions – 2020 184

11. Regarding sale of property through private treaty which statement is not true
a. For a property with assessed value/reserve price up to Rs 100.00lacks at least one attempt
should be made to sell the property through public auction/ auction by inviting tenders,
before opting for sale by private treaty.
b. For a property with assessed value/reserve price above Rs 100.00lacks at least two
attempt should be made to sell the property through public auction/ auction by inviting
tenders, before opting for sale by private treaty
c. Bank can sale property by private treaty after following all guidelines issued by Ministry of
finance.
d. For a property with assessed value/reserve price above Rs 50.00lacks at least two attempt
should be made to sell the property through public auction/ auction by inviting tenders,
before opting for sale by private treaty.

12. What is the provision required for Unsecured Doubtful Assets liability not covered by
DICGC claim received or ECGC/CGTMSE/CRGFTLIH claim received/lodged?
a. 20%
b. 25%
c. 0%
d. 100%
e. 40%

13. The service of Resolution Agents may be utilized in

a. All cases of NPA with book liability exceeding Rs 50lacks
b. Only in loss account with book liability is up to Rs. 50lacks
c. In doubtful and loss account with book liability exceeding Rs. 50lacks
d. In doubtful and loss account with book liability Rs. 50lacks and above

14. What is cutoff limit for follow up review and monitoring of accounts wherever
permission obtained for recovery/legal action and RO/CO Recovery Sections on transfer of
files?
a. NPA account with book liability up to Rs. 10lacks RO and above Rs. 10lacks CO
b. NPA account with book liability up to Rs. 5lacks RO and above Rs. 5lacks CO
c. NPA(only Doubtful) account with book liability up to Rs. 10lacks RO and above Rs. 10lacks
CO
d. NPA account with book liability up to Rs. 1lacks RO and above Rs. 1lacks CO

CIBM, Manipal-Multiple Choice Questions – 2020 185

15. What is delegated powers to Circle Head for permitting payment of professional fee to
advocates in cases filed by or against the bank where the fees claimed is beyond the
prescribed fee schedule?
a. Up to maximum of Rs 2lacks
b. Up to maximum of Rs 5lacks
c. Up to maximum of Rs 1 lac
d. Up to the maximum of Revenue powers (other than premises, computers, Printing and
stationery) delegated to the Circle.

16. Non performing financial assets purchased, may be classified as standard assets in the
book of purchasing bank
a. for a period of 1 year from the date of purchase
b. for a period of 6 months from the date of purchase
c. for a period of 3 months from the date of purchase
d. for a period of 90 days from the date of purchase
e. for a period of 180 days from the date of purchase

17. What is the risk weights to the non performing financial assets purchased from other
banks.
a. Bank should assign 100% risk weight
b. Bank should assign 50% risk weight
c. Bank should assign 60% risk weight
d. Bank should assign 40% risk weight

18. Publication of photographs of willful defaulters. Which is not true

a. Publication shall be made in one local daily having wide publicity
b. Permission of DGM of the Circle shall be obtained.
c. Reasonable time of 30 days shall be given to the defaulters/guarantors to regularize /
settle their liability before publication.
d. The photographs to be given for publication shall be attested by authorized officials of the
branch.
e. Permission of CGM CAC shall be obtained.

19. Who is authorized for empanelment of Recovery Agents

a. Circle Head
b. RO Head
c. RL&FP wing HO
d. ED

CIBM, Manipal-Multiple Choice Questions – 2020 186

20. Which statement is not true
a. Retired employees of PSB are exempted from the stipulation of 100 hours training
b. Recovery Agents have to undergo 100 hours training
c. Antecedents of Recovery Agent including police verification are to be verified by the
branch
d. Retired employee of our bank is not exempted from the stipulation of 100 hours training

21. The RO head is delegated with the power to entrust Recovery /Seizure agent NPA
accounts under
a. Doubtful, loss and written off category with the book liability above Rs 5lacks
b. Doubtful, loss and written off category with the book liability above Rs 50lacks per
account
c. Doubtful, loss and written off category with the book liability up to Rs 50lacks
d. Doubtful, loss and written off category with the book liability above Rs 25lacks

22. Beyond Rs 50lacks the entrustment of NPA account toRecovery/Seizure agent shall be
done by
a. DGM CAC RO b. AGM CAC RO
d. DGM Circle Office d. Circle Head

23. What is the maximum fees payable to Recovery Agents seizing the vehicle(Autos
Rickshaw)
a. Rs 5000
b. Rs 8000
c. Rs 1000
d. Rs 3000

24. What is the fee payable to Resolution Agents in respect of Recoveries made in loss and
written off accounts
a. 5% of recovery amount/ book liability whichever is less maximum Rs 12lacks
b. 3% of recovery amount/ book liability whichever is less maximum Rs 12lacks
c. 5% of recovery amount/ book liability whichever is less maximum Rs 15lacks
d. 5% of recovery amount/ book liability whichever is less maximum Rs 10lacks
e. 7% of recovery amount/ book liability whichever is less maximum Rs 20lacks

25. The period for which account remains in Sub Standard Category
a. 12 months
b. 18 months
c. 24 months
d. 15 months

CIBM, Manipal-Multiple Choice Questions – 2020 187

26. Legal expense in NPA account will be debited to
a. P&L account
b. Saving account
c. GL account
d. Suspense account

27. An account became NPA on 31/03/2019 for a balance of Rs 10 lac. what will be amount
of provision as on March 31 2020, if the account is fully secured?
a. Rs 2lacks
b. Rs 1.5lac
c. Rs 3.70 lac
d. Rs 4.40 lac

28. What is delegation of power for Small/Medium and large branch regarding waiver of
Unapplied interest only
a. 50000
b. 60000
c. 75000
d. No power

29. In respect of all NPA accounts except decreed accounts which statement is not true for
calculation unapplied interest
a. In Sub Standard Assets one year MCLR prevailing as on 01.04.2020 plus 1.25% or
contractual rate including penal rate whichever is lower on simple basis
b. In Doubtful Assets one year MCLR prevailing as on 01.04.2020 minus 1.25% or contractual
rate including penal rate whichever is lower on simple basis
c. In Doubtful Assets one year MCLR prevailing as on 01.04.2020 minus 1.5%or contractual
rate including penal rate whichever is lower on simple basis
d. In loss assets one year MCLR prevailing as on 01.04.2020 minus 3.5% or contractual rate
including penal rate whichever is lower on simple basis

30. Under OTS scheme for agriculture loans with combined limit up to Rs. 25 Lakhs, which of
the following settlement formula does not match where the loan account is not covered
by collateral security or having collateral security of Agriculture land only
a. Borrower having aggregate sanctioned limit up to Rs 10lacks – 25% of Book Liability as on
date of settlement
b. Borrower having aggregate sanctioned limit up to Rs 10lacks – 15% of Book Liability as on
date of settlement if borrower is dead
c. Borrower having aggregate sanctioned limit above Rs 10lacks and up to Rs 25lacks – 25%
of Book Liability as on date of settlement
d. Borrower having aggregate sanctioned limit above Rs 10lacks and up to Rs 25lacks – 30%
of Book Liability as on date of settlement

CIBM, Manipal-Multiple Choice Questions – 2020 188

31. Which statement is not true regarding settlement of Loans Under OTS scheme for
agriculture loans with combined limit up to Rs. 25 Lakhs
a. The value of Ag land need not be considered for arriving at settlement.
b. 10% of the OTS amount is to be paid
c. Borrower may be allowed 3 months time to pay the balance OTS amount without any
additional interest on the OTS amount
d. Branch head is empowered to settleAg loans with aggregate sanctioned limit up to Rs
10lacks as per guideline.

32. Which of the following settlement formula is correct Under special OTS scheme for
MSMEs with total dues of RS. 100 Lakhs and below for substandard assets where the RVS+
Net worth put together is not sufficient to cover the total dues in MSME. What will be the
right formula for settlement?
a. Total dues (contractual) upto Rs 10lacks 55% of Base amount
b. Total dues (contractual) upto Rs 10lacks 35% of Base amount
c. Total dues (contractual) upto Rs 10lacks 25% of Base amount
d. Total dues (contractual) upto Rs 10lacks 50% of Base amount

33. Concerning IBC, for all major decisions of CoC, viz. Approval of Resolution Plan,
Extension of CIRP, etc., the voting threshold limit has been modified to: (473/18)
a. Earlier 90 %, Now 75%
b. Earlier 90 %, Now 66%
c. Earlier 75%, Now 66%
d. Earlier 75%. Now 51%

34. Who can initiate Corporate Insolvency Resolution Process (CIRP):

a. Only Corporate Debtor
b. Financial Creditor and Operational Creditor.
c. Financial Creditor, Operational Creditor and Corporate Debtor.
d. Corporate Debtor and Financial Creditor.

35. As per Loan Recovery Policy- delegation of powers of OTS settlements. Branch in charge
can permit & exercise the power delegated a maximum number of __________ eligible
accounts under loss assets in the financial year.
a. 100
b. 75
c. 60
d. 90
e. 50

CIBM, Manipal-Multiple Choice Questions – 2020 189

36. Borrower has right to file an appeal in the DRT within the period of ____________from
the date of possession secured assets.
a. 45 Days
b. 60 Days
c. 30 Days
d. 15 Days

37. An unsecured sub-standard loan would mean a loan without security or where the
security value is _____or less of the outstanding loan amount ab-inito.
a. 10%
b. 50%
c. 25%
d. 15%

38. For initiating the corporate insolvency resolution process under IBC 2016, the required
application fee for financial creditor is Rs.
a) No Fees
b) Rs. 10000.00
c) Rs. 25000.00
d) Rs. 50000.00
e) Rs. 100000.00

39. What is the monetary limit for filing case in DRT

a. 10lacks
b. 20lacks
c. 30lacks
d. 20lacks and above

40. No such appeal by a borrower shall be entertained by the DRAT, unless the borrower has
deposited___________ of his dues (either claimed by bank or determined by the DRT,
whichever is less)with the DRAT. However, DRAT can reduce such amount to not less than
_____ of the debt.

a. 25%, 50%
b. 50%, 25%
c. 50%, 50%
d. 25%, 25%

CIBM, Manipal-Multiple Choice Questions – 2020 190

41.What is additional fee applicable on delayed filing of security interest beyond 30 days on
CERSAI portal for registration of movable assets, intangible assets and unit under
construction.
a.31st to 40thday up to 5 lakhs 100 and above 5 lakhs 200
b. 41st to 50thday up to 5 lakhs 250 and above 5 lakhs 500
c. 51st day on wards up to 5lakhs 500 and above 5 lakhs 1000
d. No additional fees

42. When the guarantee will become NPA, where the guarantee is fully secured by the
Central Government
a. When the Central Govt rejects the claim, when the guarantee is invoked
b. When the Central Govt rejects the claim, when the guarantee not invoked.
c. When the Central Govtaccepts the claim, when the guarantee is invoked
d. When the Central Govtaccepta the claim, when the guarantee not invoked

43. When an account has become NPA, interest debited earlier and not recovered should be
a. Reversed
b. Fully provided
c. Not reversed
d. not to be provided

44. Which among the following is not correct in case of provision against standard accounts
a. Provision is to be made on global balance
b. Provision not to be deducted to arrive at net NPA provision
c. Provision to be shown under schedule-5 ` Other liabilities and provision` in the balance
sheet
d. For standard assets no provision shall be required

45. Which of the following statements match in connection with the time period for an NPA
account:
a. remains sub- standard for 90 days
b. remains special mention account for 12 months
c. remains in doubtful more than 3 years’ category for 3 years
d. remains in doubtful first sub category for 1 year and 2nd sub category for 2 years.

CIBM, Manipal-Multiple Choice Questions – 2020 191

46. Which of the following statement is true for Accounts recommended for write of?
a. Should have completed 5 years or more from the date of advance and continuing NPA for
3 years and classified as loss assets on 31st March proceeding year, only after exhausting
all means of recovery
b. Should have completed 5 years or more from the date of advance and continuing NPA for
2 years and classified as loss assets on 31st March proceeding year, only after exhausting
all means of recovery
c. Should have completed 3 years or more from the date of advance and continuing NPA for
1 years and classified as loss assets on 31st March proceeding year, only after exhausting
all means of recovery
d. Should have completed 5 years or more from the date of advance and continuing NPA for
1 years and classified as loss assets on 31st March proceeding year, only after exhausting
all means of recovery

47.What is the meaning of ICA in relation to Resolution of Stressed Assets? (118/2019)

a. Independent Credit Audit
b. Inter Creditor Agreement
c. Internal Credit Audit
d. Institute of Chartered Accountants
e. Institute of Computer Accountants.

48. Which among the following is not correct statement in context of provision on sub-
standard account.
a. If account is secured provision at 15% and if unsecured provision at 25%
b. for unsecured portion provision is 100% and secured portion 10%
c. if no security was taken at the time of sanction of loan provision is 25%
d. If security was taken at the time of sanction of loan and is still intact, provision of 15% to
be made.

49. LokAdalat are constituted under the provision of which of the following
a. Judicial services act
b. State legal services act
c. Legal services authorities act
d. Lokadalat act

50. What is court fee for filing case in LOK Adalat?

a. Minimum Rs 1000
b. Above 1 Lac Rs 2500
c. No court fee payable
d. No court fee for BPL

CIBM, Manipal-Multiple Choice Questions – 2020 192

51. Which among the following is not correct in connection with the LOK Adalat
a. Its awards are deemed to decrees of civil courts
b. Its awards are final and binding on all the parties
c. Appeal can be made against awards of LokAdalat
d. Normal LokAdalat can entertain cases up to Rs 20lacks

52. Which among the following is not correct in connection with the maximum fee payable
to Recovery Agents in case of Recovery Dues
a. Sub Standard Account 3% of amount recovered
b. Doubtful Accounts 5% of amount recovered
c. Loss accounts / Bad Debts/W/O 10% of amount recovered max 3 lac
d. If the borrower settles the account on the sole efforts of Recovery agent through
compromise 50% of the amount mentioned above(optiona,b,c)
e. If the borrower settles the account on the sole efforts of Recovery agent through
compromise 20% of the amount mentioned above (option a,b,c)

Answers Key –

1C 11D 21C 31D 41D 51C

2D 12D 22D 32A 42A 52E
3C 13C 23D 33C 43A
4C 14A 24E 34C 44D
5D 15D 25A 35E 45D
6B 16D 26A 36A 46A
7B 17A 27B 37A 47B
8E 18E 28C 38C 48B
9A 19A 29B 39D 49C
10A 20D 30C 40B 50C

CIBM, Manipal-Multiple Choice Questions – 2020 193

 FOREIGN EXCHANGE
FEMA, NR Deposits & Remittances

1. What do you mean by ‘FEMA’

a) Foreign Exposure Management Act

b) Foreign Exchange Managing Act

c) Fedai Exchange Monitoring Act

d) Foreign Exchange Management Act

2. When the FEMA Act was passed in Parliament?

a) Ist July,1999

b) 28th December,1999

c) 29th December,1999

d) 30th December,1999

3. Which Government body monitors ‘FEMA’?

a) DGFT b) Customs c) RBI d) Ministry of Commerce

4. What is the objective of this FEMA, 1999 Act?

a) Replacing FERA

b) For Prevention of Money Laundering

c) Control in Balance of Payments in India

d) Facilitating external trade & Payments &promoting, development &maintenance of

foreign exchange market in India

5. Please quote the section under FEMA 1999 which defines ‘A person resident inIndia’?

a) Section 49 (i b) Section 9 (vi)

c) Section 2 (v) (i) d) None of the above.

CIBM, Manipal-Multiple Choice Questions – 2020 194

6. What is the period a ‘Resident’ has to be in India in the preceding financial year?

a) 180 days b) 6 months c) more than182 days d) 181 days

7. If a Foreign citizen who stay in India for employment ,business etc. for an indefinite
period of stay, will be considered

a) As Resident b) As foreign citizen

c) As PIO d) None of the above.

8. If an Indian citizen proceed abroad for business visit, medical treatment, training for
short duration will be considered as

a) To be considered as a NRI b) To be considered as Resident only

c) Persons of Indian Origin d) None of these

9. For release of foreign exchange to resident Indians for current account transactions,
Authorized dealer to be guided by which section of ‘FEMA’?
a) Section 3 b) Section 2(ii) c) Section 5 d) Section 9

10. What do you mean by ‘Schedule III’ & to whom it has been delegated?
a) RBI b) Authorized dealer Banks c) Customs d) None of the above.

11. In terms of drawl exchange as per ‘Schedule I’, certain categories are permitted?

a) Foreign Travel b) Education

c) Expressly prohibited d) None of these.

12. Out of overall foreign exchange (USD 250,000) being sold to a traveler going toLibya,
exchange in the form of foreign currency notes & coins how much can be sold ?

a) USD 3000 b) USD 5000 c) USD 5000 or its equivalent

d) No limit for Libiya as like Islamic Republic of Iran.

13. How much a resident Indian is allowed to take INR to other countries (otherthan Nepal
& Bhutan) ?

a) Rs 50,000 b) Rs 10,000 c) Rs 25,000 d) No limit

CIBM, Manipal-Multiple Choice Questions – 2020 195

14. Which Form we have to obtain from traveler releasing currency other than application?
a) Form A1 b) Form A4 c) Form A2 d) Form A

15. To which department of Government of India the Dance troupes, artistes should apply
for foreign exchange while undertaking tours?

a) Department of Education & Culture under the Ministry of Education

b) Department of Education & Culture under the Ministry of Ministry of Human Resources

c) Department of Foreign Affairs

d) No permission required, An Authorized dealer or FFMC can disburse.

16. What is the maximum eligibility for private visits to abroad (other than Nepal &
Bhutan)?

a) Rs 50,000

b) USD 250,000

c) Rs 250,000 equivalent foreign exchange

d) None of the above.

17. For going abroad on employment, emigration how much amount a person can draw
foreign exchange in a financial year under LRS scheme?

a) Rs 100,000 b) Rs 250,000 c) USD 250,000 d) None of the above.

18. The individuals having proprietorship firms, what is maximum drawl amount while
visiting abroad irrespective of the number of visits during a financial year?

a) No limit b) Rs 250,000 equivalent foreign exchange

c) USD 250,000 d) USD 50,000

CIBM, Manipal-Multiple Choice Questions – 2020 196

19. If a resident individual going abroad for medical treatment & submit an estimate from
the doctor what is the maximum eligibility?

a) Rs 250,000

b) Up to estimated amount

c) Up to estimated amount or USD 250,000 whichever is more.

d) Up to estimated amount or Rs 250,000 whichever is less

20. The resident individuals for studies abroad for purchase of foreign exchange under LRS
of USD 250,000, what documents required other than “Application cum under taking’?

a) Form A1 b) Form A4c) Form A2 d) Application cum undertaking’ only

21. Which account a resident individual in India can open, hold & maintain within
authorized dealer out of foreign exchange acquired in the form of currencynotes, bank
notes & traveler cheques?

a) FCNR b) RFC c) RFC (D) d) Domestic SB

22. What is the limit the Authorized Dealer may accept in cash for amounts against sale of
foreign exchange for travel abroad?

a) Rs 25,000 b) Rs 10,000 c) Rs 50,000 d) No limit

23. Up to what amount AD-I banks can release fore in the cash for Traveler proceeding for
HAJ/UMARAH pilgrim?

a) Up to USD10000

b) Up to the cash limit specified by HAZ committee of India

c) A or B whichever is lower

d) A or B whichever is higher

CIBM, Manipal-Multiple Choice Questions – 2020 197

24. How much forex can be released for travel to Nepal or Bhutan?

a) USD5000

b) USD10000

c) Fore can’t be released for travel to Nepal or Bhutan

d) USD 25000

25. An NRI resident in Dubai has come back to India to settle permanently. Which of the
following account as a Banker you will suggest as per FEMA,1999 to keep his present &
future earnings in foreign currency, facility of future repatriation facility & to earn
interest thereon:

a) Foreign Currency Nonresident account

b) Exchange earner foreign currency account

c) Resident foreign currency domestic account

d) Resident foreign currency account.

26. The rate of interest on resident foreign currency deposit

a) domestic savings bank rate on savings bank account

b) its Bank discretion

c) fixed by RBI.

d) linked with London inter banking offer rate linked rate of interest.

27. Foreign currency fluctuation risk is born by the customer in respect of

a) FCNR account b) EEFC account

c) RFC – Domestic d) NRE (rupee account)

CIBM, Manipal-Multiple Choice Questions – 2020 198

28. Funds lying in EEFC account can be used by the account holder for

a) advances to overseas importer

b) giving trade related loans outside India

c) repayment of pre shipment credit

d) b & c only

e) a to c all

29. Which among the following amount is allowed to repatriated under the Redeposit A/c
for NRIs

a) the principal & the interest portion after deduction of tax

b) interest only

c) no repatriation permitted

d) the amount of principal & interest thereon

30. Up to what extent of debits can be allowed by ADs for remittance from No-account of
NRI/PIO representing sale of immovable property:

a) US$ 100000 in a calendar year

b) US$ 100000 in a financial year

c) US$ 1 million in a financial year

d) permission to be obtained by Ads from RBI

31. Mr Bharat is returning permanently to India from USA after staying 23 Years &now he
wants to retain the repatriation facility of all the money he has earned& also the
pensions earnings & rent owned by him in abroad from the foreign firm. As a Banker
what will be your suggestion to him & to suit his needs?
a) FCNR(B) account b) RFC (D) account

c) RFC account d) any of the above

CIBM, Manipal-Multiple Choice Questions – 2020 199

32. Which of the following credits can be credited to NRO account?

a) Telegraphic transfer, currency (self only), demand draft, cheques

b) rent, dividends earnings in India

c) sale proceeds of assets including immovable property.

d) all of the above.

33. A person of foreign origin (foreigner) opens an NRO account in India & below which is
not correct:

a) he is on visit in India

b) period of deposit restricted to 6 months

c) the balance in the account can be converted into foreign currency provided no local
credits are credited

d) if account is maintained for more than 6 months RBI permission is required.

34. NOSTRO account means:

a) Foreign currency account of an Indian Bank in India

b) Foreign currency account of an Indian Bank abroad.

c) Foreign currency account of a Foreign Bank

d) Indian currency account of a Foreign Bank.

35. The visits by a resident Indian to which of the following countries are not eligible for
obtaining foreign exchange.

a) Iraq & Libya b) all SAARC countries

c) Russian Federation d) Nepal & Bhutan

CIBM, Manipal-Multiple Choice Questions – 2020 200

36. Canara Bank opens a current account with City Bank, New York for its day to day
business transaction in US dollars. Which of the following kinds of accounts, it will be
known to Canara Bank?
a) Vestry account b) Nostrum account
c) Lora account d) Escrow account

37. Which accounts are called “your account with us”

a) Loro account b) Vostro account
c) Nostro account d) none of the above

38. Current Account full convertibility introduced by RBI on

a) 01.08.1994 b) 08.08.1994 c) 19.08.1994 d)19.09.1994

39. Which of the following does not match in case of drawl of foreign exchange by
residents:?

a) Schedule I transaction not permitted

b) Schedule II transaction – permission of Central Government.

c) Schedule III transaction with permission of RBI

d) none of the above.

40. Foreign currency nonresident (Banks) accounts can be opened in the name of the
following:

a) non-resident b) Overseas Corporate bodies

c) none of the above d) a & b both

41. A non-resident account cannot be opened by which of the following:

a) an Indian National gone USA for medical treatment for a longer period

b) as Indian national working with a foreign airline with his base in Hong Kong

c) an Indian student gone abroad for studies.

d) none of the above.

CIBM, Manipal-Multiple Choice Questions – 2020 201

42. The foreign exchange risk shall be borne by the bank, in which of the nonresident
account.
a) NRO b) NRE c) FCNR d) All the above

43. Joint operation joint account with a resident can be opened by an NRI(Number 1) in
which of the following with clause Number 1 or Survivor.
a) NRO b) NRE c) FCNR d) all the above

44. An NRI residing in USA has come back to India to settle permanently, which of the
following account would be opened by him to keep his balance in for eign currency ,to
earn interest

a) Resident foreign currency account

b) Resident foreign currency Domestic account

c) Foreign currency nonresident account

d) Exchange earner foreign currency account

45. Which of the following type of account cannot be opened by a person residentin India?

a) Resident foreign currency account (D)

b) Exchange earner foreign currency account

c) Nonresident ordinary account

d) All above

46. What is the maximum amount that can be deposited in EEFC Account?

a) 75 % b) 50 % c) 100 % d) 25 %

47. What is the maximum limit up to which a resident individual can make investment
under ODI(LRS scheme)?

a) USD 50,000 b) USD 2,50,000 c) USD 2,00,000 d) USD 5,00,000

CIBM, Manipal-Multiple Choice Questions – 2020 202

48. Pre-payment of Import bills permissible without deduction of interest for unexpired
portion of 3 to 4 days.

a) not permitted b) clean rate of interest to be collected

c) permitted d) upto USD 1,00,000

49. Power of Branch Managers regarding relaxations of Status report/OPL of advance

remittance under imports of a Importer with satisfactory operations in year.

a) USD 10,000 & cumulative USD 1,00,000

b) USD 10,000 & cumulative USD 50,000

c) USD 10,000 & cumulative USD 75,000

d) none of the above.

50. How regulates the Foreign Trade Policy in India

a) Reserve Bank b) Ministry of Finance

c) Ministry of commerce d) FEDAI

51. Who regulate the Foreign trade in India?

a) RBI b) DGFT c) FEDAI d) SEBI

52. What is the residential status of a student from India having gone abroad for studies
purpose:

a) a person of Indian origin b) a Nonresident Indian

c) a resident Indian d) a foreign national

CIBM, Manipal-Multiple Choice Questions – 2020 203

53. An NRI has been issued a credit card by our bank. The balance drawn by him under the
card shall be adjusted by which of the following:

a) Any one of the below modes.

b) transfer from NRE Account

c) transfer from his FCNR account

d) transfer from his NRO account

54. If an NRI is having an Nonresident External (Rupee account) term deposit &return to
India

a) the account will continue as till maturity

b) the A/c will be closed treated as domestic deposit

c) the account will be converted as resident foreign currency deposit

d) any of the above

55. Transfer between NRO accounts of the same NRI Customer is

a) not permitted

b) freely permitted

c) permitted at the Bank’s discretion

d) none of the above.

56.Amendment to Master Direction (MD) on KYC for OVDs of NRIs/PIO Customers, branch
should obtain the certified copy verified by any of the following

a) Official of overseas branch of Scheduled Commercial Banks registered in India,

b) Branches of overseas banks with whom Indian banks have relationships,
c) Notary Public abroad or Court Magistrate or Judge
d) Indian Embassy/Consulate General of the country
e) Any one of the above

CIBM, Manipal-Multiple Choice Questions – 2020 204

57.Select the correct option with regards to additional interest rate for FCNR (B) Deposit

a) 0.50% above the applicable ROI for senior Citizen

b) 1.00% above the applicable ROI for senior Citizen
c) Ex-employee, additional 1.50% above the applicable ROI
d) No additional ROI for Senior Citizens, employee, ex-employee

58.Prior clearance before accepting/ renewing any FCNR/RFC deposit of USD 1 million &
above (or its equivalent in other currencies) for fixing the interest ROI, required from

a) Circle Head (through MIPD of respective Circle Office)

b) Fore Dealing room, Integrated Treasury Wing, Mumbai
c) R.O. Head (through MIPD of respective Regional Office)
d) No such permission required

59. Funds flow from the Donor Agencies placed under Prior Reference Category (PRC), the
funds are allowed to be credited into the account of the recipient only after clearance /
prior permission from the

a) Ministry of Home Affairs, Govt. of India.

b) Ministry of Commerce, Govt. of India
c) Reserve Bank of India
d) Ministry of Corporate Affairs, Govt. of India

Answers Key
1d 9c 17 c 25 d 33 d 41 a 49 b 57 d
2c 10 b 18 c 26 b 34 b 42 c 50 c 58 b
3c 11 c 19 c 27 d 35 d 43 d 51 b 59 a
4d 12 c 20 c 28 e 36 b 44 a 52 b
5c 13 c 21 c 29 d 37 b 45 c 53 a
6c 14 c 22 c 30 c 38 c 46 c 54 d
7a 15 b 23 b 31 c 39 c 47 b 55 b
8b 16 b 24 c 32 d 40 a 48 c 56 e

CIBM, Manipal-Multiple Choice Questions – 2020 205

EXPORTS
1. RBI issues directives on export credit under which of the following

a) Sec 27 of RBI act

b) Sec 2(v) (i) of Fame Act,1999

c) Sec 23 & Sec 56 of Banking Regulation Act

d) Sec 21 & 35A of Banking Regulation Act

2. Pre shipment credit can be allowed on the basis of which of the following:

a) letter of credit opened in favors of the exporter or any other person.

b) confirmed or irrevocable order for export of goods.

c) letter of credit opened in favors of an exporter.

d) any of the above.

3. Specific Approval List (SAL) on the exporters is issued by

a) Exit Bank b) RBI c) ECGC d) Ministry of Finance

4. Exporter’s caution list issued by

a) our Bank b) RBI c) ECGC d) none of these.

5. Restricted cover countries list is issued by

a) our Bank b) RBI c) ECGC d) none of these

6. The period of export credit is restricted to:

a) discretion of the bank b) 90 days c) 270 days d) 360 days

CIBM, Manipal-Multiple Choice Questions – 2020 206

7. The pre shipment credit is liquidated out of
a) converting pre shipment into post shipment credit
b) balances in EEFC account
c) proceeds of bills drawn for the export of the same consignment or other consignments
d) other rupee resources of exporter representing the export has actually taken place.

a) a & b only b) a, b & d only c) a to d all d) a only

8. Running account pre-shipment credit is permitted, which of the following incorrect:

a) period of individual credit not to exceed prescribed 360 days

b) Adjustment is on first in first out basis.

c) Pre-shipment credit can be adjusted from proceeds of those exports for which pre-
shipment credit not availed

d) all of the above.

9. Before discounting the export bill the branch has to verify the

a) Physical copy of the shipping bill

b) physical copy submitted by the exporter to be verified on line in the ICE

c) GATE portal of customs

d) no need to verify the shipping bill

e) none of the above

10. In the case of ECGC post shipment finance, the ECGC premium is to be

a) paid by the exporter

b) paid by the Bank

c) Bank has the discretion to waive the premium basing on the standing of the party

d) none of the above

CIBM, Manipal-Multiple Choice Questions – 2020 207

11. As per FEMA full value of export to be realized ______ from the date of shipment

a) 6 months b) 9 months c) 12 months d) 18 months

12. Export documents to be submitted by the exporters to the Bank within ---------- from the
date of export

a) 7 days b) 15 days c) 21 days d) 30 days

13. An exporter of Bharat Commercial Bank receives a letter of credit issued by aback in
Singapore for exporting jute bags. The condition stated in the FLC that exporter can
negotiate documents with Indian Commercial Bank only. This FLcto be stated as:

a) confirmed letter of credit b) red clause letter of credit

c) back to back letter of credit d) restricted letter of credit

14. All categories of foreign exchange earners are allowed to credit ____% of their foreign
exchange earnings to their EEFC Accounts.

a) 25% b) 50% c) 10% d) 100%

15. During the COVID 19 situation RBI notified, period of realization and repatriation of the
export proceeds to India has been extended from 9 months to __________Months, if
export is made before 31.07.2020

a) 12 months b) 15 month c) 18 month d) 24 month

16. Exporters receiving advance payment for long term export contracts from the overseas
buyers can pay interest (interest bearing advance remittance) on the amount received at
LIBOR (London Inter Bank Offered Rate) at _____

a) LIBOR + 200 bps b) at LIBOR + 400 bps

c) LIBOR + 250 bps d) cannot pay any interest

CIBM, Manipal-Multiple Choice Questions – 2020 208

17. Exporters having a minimum of three years’ satisfactory track record are allowed to
receive long term export advance up to a maximum tenor of ........years to be utilized for
execution of long term supply contracts.

a) 5 years b) 10 years

c) 12 years d) no such provision under FEMA

18. Firms / Companies and other organizations participating in Trade Fair/Exhibition abroad
can gift the unsold items to the extent of USD _____

a) US$ 5000 per exporter

b) US$ 10000

c) US$ 5000 per exporter, per exhibition/trade fair.

d) no such provision.

19. In case of exporters undrawn balance is permitted in certain of trade up to------of the
export value

a) 5% b) 10% c) 25% d) 50% e) not applicable

20. Reduction in invoice value in normal course is permitted for exports up to____of export
value by an AD – category 1 Bank.

a) 5% b) 10% c) 25% d) 50% e) 100%

21. In Exports the term ‘Satisfactory track record’ means the export outstanding do not
exceed .......... of the average annual export realization during preceding three financial
years.

a) 25 % b) 10 % c) 5% d) 1%

22. Self “write-off” by an exporter (other than Status holder exporter) of unrealized export
bills is ....... % of the total export proceeds realized during the previous calendar year
subject to certain condition.

a) 10 % b) 25 % c) no powers d) 5 %

CIBM, Manipal-Multiple Choice Questions – 2020 209

23. The exporters would be caution listed if any shipping bill against them Remains
Open/unpaid for more than ------------ from the date of export in EDPMSprovided no
extension is granted by AD Category –I bank / RBI.

a) 6 months from the date of export b) 1 year from the date of export

c) 2 years from the date of export d) 3 years from the date of export

24. Request for issuance of guarantees to caution listed exporters can be done

a) by Banks under the RBI delegated powers

b) can be issued against 100% deposit

c) Banks cannot issue requires RBI prior approval.

d) none of the above

25. Where exports are through warehouse cum display centers abroad, the periodof
realisation of exported goods is:

a) 15 months b) 6 months c) 12 months d) no time limit

26. Pre shipment credit in foreign currency allowed at ........... related interestrates.

a) EURIBOR b) LIBOR c) EURO LIBOR d) any of the above.

27. If an Indian company wants to open office overseas, the AD-category 1 Bankscan permit
remittance for normal business expenses upto .........% of averageturnover of previous 2
years.

a) 20 % b) 5 % c) 10 % d) 15 %

28. If an exporter requests for change of the buyer, the AD Category – 1 bank canallow,
provided (a) there is no reduction in value (b) reduction in value isrestricted pto 25 % (c)
the realisation take place within original 9 months fromthe date of export. d) The
exporter is not in the caution list of RBI.

a) a only b) b only c) b & c only d) b, c & d only

CIBM, Manipal-Multiple Choice Questions – 2020 210

29. RBI has delegated powers to AD Category – 1 Banks to extend the period ofrealisation of
export proceeds beyond stipulated period (presently 9 months)from the date of export,
upto a period of .......... months at a time (firstextension request) irrespective ofthe
invoice value.

a) 12 months b) 6 months c) 3 months d) 180 days

30. Customs office returns to the exporter which copy of export declaration form

a) currency control copy b) trade control copy

c) export declaration copy d) exchange control copy

31. The export declaration form used for software export (in triplicate)in nonphysicalform
is:

a) COD b) Software declaration form c) Softex d) EDF

32. An Exporter M/s Trueback India receives a confirmed export order, as per termsof the
sale agreement goods are to be delivered to the shipping companywithout putting the
goods on board the ship & now which of the kind ofincoterms 2010 can be termed as
putting the goods by the side of the ship inthe yard.

a) Ex- works b) Free on board

c) CIF d) FAS

33. A company dealing in rough or cut or polished diamonds, wants to opendiamond dollar
accounts & what is the maximum no of accounts the companycan open.

a) single account only b) 4 accounts

c) 3 accounts d) 5 accounts

CIBM, Manipal-Multiple Choice Questions – 2020 211

34. An exporter has approached a Banker to open a EEFC account to deposit theexchange
earnings. Which account would you suggest to the exporter.

a) term deposit account

b) escrow account

c) current account

d) any of the above account without payment of interest thereon.

35. The SWIFT security control to prevent automatic changes during transmission isCalled

a) encryption b) checksum

c) key authentication d) decryption

36. Customers who deals with international business are expected to obtain Importexport
code.Which authority issues the code:

a) by any Nationalised Bank b) EXIM Bank

c) RBI d) Director General of Foreign Trade.

37. For delinking the export bill the rate to be applied is (Crystallisation)

a) TT selling rate b) bill selling rate

c) Bill buying rate d) TT buying rate

38. Export Letters of Credit (EOLC’s) can be processed and advised to the ExportCustomers
by

a) Only Vostro Section, Integrated Treasury Mumbai

b) Foreign Department

c) Designated branches

d) FDs, Designated branches and Fex cells.

CIBM, Manipal-Multiple Choice Questions – 2020 212

39. Listed country means that

a) Exports cannot be made to that country

b) Exports to be made with prior permission from RBI

c) Exports bills may be realized with time delay

d) Exports to that country (which is having balance of payments problem) shallbe made with
prior permission.

40. An exporter should have:

a) The ways & means to actually export the goods

b) Importer/Exporter code number assigned

c) An export order or LC in his name.

d) All the above conditions should be satisfied.

41. Payment under reserve means

a) Payment will be made after getting confirmation from the LC issuing banker

b) When export documents under LC are discrepant, payment is made againstindemnity.

c) Payment made under protest.

d) None of the above.

42. SDF means

a) State development forum b) Special discount form

c) Statutory Declaration form d) None of the above.

43. Valuation of Computer software through satellites links will be done by officialsof:

a) RBI b) Financing Bank

c) DGFT d) Department of Electronics, Government of India.

CIBM, Manipal-Multiple Choice Questions – 2020 213

44. The ostensible date of delinking for demand or sight bills:

a) 15 th day after the expiry of transit period normally allowed.

b) 15 plus 3 grace days from the date of negotiation of bill

c) 15 days maximum from the expiry of the NTP.

d) 15 days from the expiry of the normal transit period.

45. The ostensible date of delinking for usance bill is:

a) 15 th day from the acceptance of the bill

b) 15 th day from the actual date after DA period

c) 15 plus 3 days from the actual due date after DA period.

d) 15 th day from the actual due date / notional due date of bill (if actual duedate is not
received.

46. Select correct answer regarding revised RBI guidelines of Caution listing of exporter

a) Any shipping bill pending more than 2 years

b) Auto caution listing through EDPMS for default more than 2 years
c) caution listed /de-caution listed as per recommendation of AD Bank
d) Once related bills are realized/closed than auto de-cautioned listing

47. Bill drawn on DP/At Sight Basis and not under Letter of Credit (LC) for Bills in Rupees, the
normal transit period (NTP) will be

a) 15 days
b) 20 days
c) 25 days
d) 30 days

CIBM, Manipal-Multiple Choice Questions – 2020 214

48. Period for TT reimbursement under Letters of Credit(L/C) where L/C provides for
reimbursement by electronic means

a) 3 days
b) 5 days
c) 7 days
d) 10 days

49. Select the incorrect option. The exporter may be caution listed based on the
recommendation of AD bank in the matter -

a) Exporter has come to the adverse notice of ED/CBI etc.

b) Case where Exporter is not traceable
c) Exporter is not making any serious efforts for realization of export proceeds.
d) Auto caution listing by RBI, no recommendation from AD bank.

50. Government of India has approved the extension of Interest Equalization Scheme for
pre and post shipment Rupee export credit, with same scope and coverage, for the
period

a) 01.04.2020 to 31.03.2021
b) 01.07.2020 to 30.06.2021
c) 01.10.2020 to 30.09.2021
d) 01.04.2020 to 31.03.2022

51.Branches/Offices may allow payments for export of goods / software to be received from
a third party (a party other than the buyer) after ensuring that

a) Documentary evidence for circumstances leading to third party payments

b) Name of the third party being mentioned in the irrevocable order / invoice has been
produced by the exporter.
c) Any deviation in the matter a& b above should be reported to RBI for approval.
d) All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 215

 Answers key
1c 13 d 25 a 37 a 49 d
2d 14 d 26 d 38 d 50 a
3c 15 b 27 c 39 d 51 d
4b 16 a 28 d 40 d
5c 17 b 29 b 41 b
6c 18 c 30 d 42 c
7c 19 b 31 c 43 d
8d 20 c 32 d 44 d
9b 21 c 33 d 45 d
10 b 22 d 34 c 46 c
11 b 23 c 35 b 47 b
12 c 24 c 36 d 48 b

CIBM, Manipal-Multiple Choice Questions – 2020 216

IMPORTS

1. Merchandise which can be imported into India, eligibility of importers isgoverned by

Foreign Trade Policy, which authority notifies under Section 5 ofForeign Trade Act, 1992

a) Director General of Foreign Trade

b) Export Import promotion council

c) Government of India, Ministry of Commerce & Industry

d) None of the above

2. Which Authority is responsible for formulating & execution of Foreign Tradepolicy

including licensing.

a) Reserve Bank of India b) Director General of Foreign Trade

c) FEDAI d) none of the above

3. Which Authority Issue Importer-Exporter code no

a) Export-Import promotion council b) Indian Chamber of Commerce

c) DGFT d) Reserve Bank of India

4. As per RBI guidelines import bill payment has to be settled by the importer inIndia

a) 3 months from the date of shipment

b) 3 months from the date of receipt of goods in to India

c) 6 months from the date of shipment

d) 6 months from the date of receipt of goods in to India.

CIBM, Manipal-Multiple Choice Questions – 2020 217

5. When the importer submits the original/Xerox copy of Bill of Entry the same hasto be
verified by the branch

a) physical copy with a customs seal and stamp

b) no physical copy only on line verification to be done

c) need not be done as RBI has exempted submission of bill of Entry

d) in the BOE settlement file, duly linking the same to outstanding outward remittance
message (ORM)

6. As per RBI, Banks can extend time up to …… for payment of import bills

a) upto 12 months from the date of shipment

b) up to 18 months from the date of shipment

c) up to 24 months from the date of shipment

d) up to 36 months from the date of shipment.

7. In case of advance remittance for imports other than capital goods the physicalimport of
goods should be made within

a) 3 months from the date of remittance

b) 6 months from the date of remittance

c) 3 years from the date of remittance

d) no restriction in the period.

8. In case of advance remittance towards capital goods within how many days theimporter
should produce bill of entry.

a) within a period of 3 months & 15 days

b) within a period of 6 months & 15 days

c) within a period of 3 years & 15 days

d) within a period of 12 months & 15 days.

CIBM, Manipal-Multiple Choice Questions – 2020 218

9. For permitting advance remittance for import for a customer, the Customershould be
having satisfactory dealing with our Bank for a period of

a) 6 months

b) 3 months

c) 1 year

d) no restriction on the period only satisfactory dealings.

10. Import of above USD 1,00,000 on sight basis the importer to submit theappropriate
documentary evidence viz, exchange control copy of bill of entry(proof of import) to the
Authorized dealer Category 1 Banks by the importer_______

a) within 3 months from the date of remittance

b) 6 months from the date of remittance

c) no need to submit as RBI has exempted

d) 12 months from the date of remittance

11. Letter of credit (LCs, also known as Documentary credits) are governed by provisions of
……… …. set by International Chamber of Commerce(ICC) Paris

a) ISBP b) eUCP c) UCPDC d) URR 725

12. Uniform Customs & Practice for Documentary Credits, 2007 Revision, ICC Publication
600 operative from
a) 4th July,2007 b) 1st July,2007
c) 2 nd July,2007 d) 3 rd July, 2007

13. Uniform Customs & Practice for Documentary Credits 600 are rules that apply to:

a) all Foreign LCs only

b) all LCs

c) any LC where the text indicates that it is subject to this rules.

d) any LC in which these have not been restricted to be applicable.

CIBM, Manipal-Multiple Choice Questions – 2020 219

14. Under UCPDC – 600, the documents to be presented by or on behalf of thebeneficiary
for payment, not later than …. after the date of shipment, but notlater than the expiry
date.

a) 21 calendar days b) 21 business days

c) 21 banking days d) 21 working days

15. As per Incoterms 2010, the seller delivers the goods & pays the Freight.

a) FOB b) CIF c) C & I d) CFR

16. An LC is issued in favour of the ultimate supplier of beneficiary, on request ofthe

beneficiary on the strength of the original LC.
a) Irrevocable LC b) Confirmed Lc

c) Red Clause LC d) Back to Back LC

17. An LC provides for pre shipment credit as well as warehouse storage of goods,

It called as:

a) Standby LC b) Green clause LC

c) Revolving LC d) Red clause LC

18. M/S Vishal Export House receives a letter of credit for export of jute Bags toUS but the
expiry date of the credit is 15th August, Tuesday. In this case the documents for
negotiation can be submitted to the negotiating bank on:

a) the preceding business day b) the succeeding business day

c) the succeeding banking day d) the preceding banking day

CIBM, Manipal-Multiple Choice Questions – 2020 220

19. In case of import calling for Lloyds certificate is applicable where

a) individual shipment is above 30 lakhs

b) individual shipment is above 10 lakhs

c) individual shipment is above 15 lakhs

d) none of the above.

20. In case of import calling for SGS certificate (pre shipment inspection) isapplicable where

a) individual shipment is above 30 lakhs

b) individual shipment is above 10 lakhs

c) individual shipment is above 15 lakhs

d) none of the above.

21. As per Foreign exchange Regulation Importers can receive import bills directlyfrom the
overseas supplier up to a value of USD does not exceed in general
a) USD 5,00,000 b) USD 2,00,000
c) USD 3,00,000 d) cannot receive import bills directly.

22. In view of outbreak of COVID-19 pandemic, RBI extended time period for completion of
remittances against normal imports has been extended from ___months to
_____months, if shipment of such import is made before 31.07.2020

a) 6,9 b) 6,12

c) 9,12 d) 12,15

23. Advance remittance for imports exceeding ……… branches should obtain
anunconditional, irrevocable standby letter of credit or a guarantee from aninternational
repute situated outside India,or a guarantee of an AuthorizedDealer Category I Bank in
India.

a) USD 50,000 or its equivalent b) 2,00,000 or its equivalent,

c) USD 1 Million d) USD 10,000

CIBM, Manipal-Multiple Choice Questions – 2020 221

24. As per the article 14 (b), of UCPDC (uniform Customs and Practices forDocumentary
Credits) a nominated bank acting on its nomination, a confirmingbank, if any and issuing
bank shall each have a maximum of ------ banking daysfollowing the day of presentation
to determine, if a presentation is complying.

a) 7 Banking days b) 10 Banking days

c) 5 Banking days d) 14 Banking days

25. Submission of Bill of Entry (BEF) statement to RBI by the Banks

a) once in six months in June and Dec

b) once in a year (March 31st)

c) discontinued

d) once in six-month Mar and Sep

26. Import bill to be delinked at

a) bill buying rate b) TT selling rate

c) bill selling rate d) TT buying rate

27. Form A1 is used for obtaining foreign exchange

a) for import payments b) for amount upto US$ 5000

c) for remittance other than imports d) it is discontinued.

28. As per foreign exchange trade,suppose days 1, 2, 3 and 4 are all working days. If day 4 is
declared as a holiday on day 1, it will be called as
a) a suddenly declared holiday.
b) a known holiday
c) a normal holiday
d) a normal working day

CIBM, Manipal-Multiple Choice Questions – 2020 222

29. As per foreign exchange trade,suppose days 1, 2, 3 and 4 are all working days. If day 4 is
declared as a holiday prior to day 1, it will be called as
a) a suddenly declared holiday.
b) a known holiday
c) a normal holiday
d) a normal working day

Answers key
1c 6d 11 c 16 d 21 c 26 c
2b 7b 12 b 17 b 22 b 27 d
3c 8c 13 c 18 c 23 b 28 a
4c 9c 14 a 19 c 24 c 29 b
5d 10 a 15 d 20 a 25 c

CURRENCY RATE/QUOTATIONS & MISC

1. Purchase transactions by banks in the context of foreign exchange means:

a) converting rupees into foreign currency.

b) converting foreign currency into rupees.

c) converting rupees into pounds.

d) selling currency to customers.

2. In respect of sale or purchase of foreign exchange, which following principleswould be

followed, when we are quoting direct rate.

a) sell low buy low b) sell low

c) buy high d) buy low sell high

3. The forward rate of dollar being quoted by a dealer at a premium. Among thefollowing
who will be benefited.

a) exporters b) merchant importers

c) software importers d) all of the above

CIBM, Manipal-Multiple Choice Questions – 2020 223

4. An exporter M/s Vishal Trading submits an export bill in US$ for negotiationunder letter
of credit. As a dealer which rate you will apply.

a) Bills buying rate b) TT buying rate

c) TT selling rate d) Bills selling rate

5. Which of the following methods applied for quoting the foreign exchange ratesin India?

a) Cross rates b) Indirect rate

c) Interbank rate d) Direct rate

6. An establishment is authorized by RBI for dealing in purchase & sell of foreigntraveler

cheques & foreign currency notes from/to the foreign tourist.

a) Authorized dealer b) Authorized money changer

c) Full-fledged money changer d) Authorised authority money changer

7. An exporter M/s Singhania Agencies approaches to an Authorized dealer fornegotiation

of a document under Documentary letters of Credit in EURO. It willbe categorized as.

a) negotiation transaction b) purchase transaction

c) sale transaction d) arbitrage transaction.

8. When the future value of a currency is lower than the spot value, the currencyis said to
be in.
a) at par b) premium c) discount d) none of the above

9. As per RBI requirements all the ECB (External Commercial Borrowings) raised bythe
customers are to be

a) Compulsorily hedged up to 70% of the borrowing including interest

b) compulsorily hedged up to 100% of the borrowing including interest

c) compulsorily hedged up to 120% of the borrowing including interest

d) Banks can permit waiver depending on the standing of the party

CIBM, Manipal-Multiple Choice Questions – 2020 224

10. Associations/trusts receiving donations from abroad under FCRA (Foreign Contribution
Regulation act has to register with which Authority.

a) Ministry of finance b) Ministry of Home affairs

c) Ministry of Communication d) Ministry of External affairs

11. The foreign exchange market in India operates daily (except Saturday and Sunday) from

a) 8 am to 1 pm b) 9 am to 6 pm

c) 10 am to 4 pm d) 9 am to 5 pm

12. A “over bought” position in foreign exchange of a Bank denotes

a) When the sale of foreign exchange is more than the purchase

b) when purchase of foreign exchange is more than the sales

c) when the Bank Treasury borrowers from abroad

d) When the Bank borrowers from RBI in foreign currency

13. Masala Bonds are the bonds

a) bonds raised by Indian Masala Traders for funding their business in India

b) Foreign currency bonds raised by Indian Corporates in India

c) Rupee denominated bonds raised in Overseas by the Indian Corporate

d) Foreign currency bonds raised in Indian Corporate abroad

14. The imports into a country are more than the exports of goods & services fromthe
country, this will directly effect to:

a) balance of payments b) balance of currencies

c) balance of trade d) balance of foreign exchanges

CIBM, Manipal-Multiple Choice Questions – 2020 225

15. When the delivery under a forex deal is completed on the next working dayfrom the
date of the contract, the rate is

a) spot rate b) Forward rate

c) ready or cash rate d) Tom rate

16. Foreign currency rates are declining compared with Indian currency. Whichcategory will
be benefited for this movement of rate.

a) Exporters b) both exporter & importer

c) Importer d) banks having long position.

17. Canara Bank opened a current account with Wachovia Bank in New York for itsdaily
transaction in US $. Which of the following kinds of accounts, it will beknown for Canara
Bank as?

a) Loro Account b) Mirror account

c) Nostro account d) Vostro account

18. From Bank’s angle, when there is inflow of foreign exchange & outflow ofrupees, these
transactions are called

a) sales b) Inward remittances

c) Outward Remittances d) both a & c above

19. A spot contract shall be deliverable on

a) deliverable on the same day

b) on the working day immediately succeeding the contract date.
c) Second succeeding working day following the contract date.
d) Third succeeding working day following the contract date

CIBM, Manipal-Multiple Choice Questions – 2020 226

20. When expiry date of an option contract falls on a “known holiday”, expiry date is

a) pre-poned to the previous working day.

b) Post poned to the next working day.
c) Option contract treated as invalid.
d) One day after next working day.

21. Priority sector Export Credit (other than in Agri & MSME): Incremental export credit
over corresponding date of the preceding year, up to 2 per cent of ANBC or CEOBE
whichever is higher, subject to a sanctioned limit of up to

a) Rs 20 Crore per borrower

b) Rs 40 Crore per borrower
c) Rs 60 Crore per borrower
d) Rs 100 Crore per borrow

Answers key
1b 4a 7b 10 b 13 c 16 c 19 c
2d 5d 8c 11 d 14 c 17 c 20 a
3a 6c 9a 12 b 15 d 18 b 21 b

CIBM, Manipal-Multiple Choice Questions – 2020 227

 OFFICIAL LANGUAGE
1. Official Language Implementation comes under which ministry?
a) Finance Ministry
b) Ministry of Home Affairs
c) Defence Ministry
d) Human Resources Ministry
e) None of the above

2. Under which rule of Official Language Rules, 1976, letter received in Hindi is to be replied
in Hindi only?
a) Rule No. 15
b) Rule No. 5
c) Rule No. 25
d) Rule No. 6
e) None of the above

3. Hindi Day is celebrated on which of the following dates every year?

a) 19th November
b) 14th September
c) 15th September
d) 24th September
e) None of the above

4. Under which section of Official Language Act, 1963, certain specified documents like
circulars, memos and general order etc. are to be issued bilingually?
a) Section 343
b) Section 3(4)
c) Section 2(2)
d) Section 3(3)
e) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 228

5. Which among the following is considered as ‘Working Knowledge in Hindi’ as per
definition given under Official Language Rules, 1976?
a) Studied Hindi at primary school level
b) Need not have learnt Hindi to write
c) Passed matriculation with Hindi as one of the subjects
d) Need not know to speak Hindi
e) None of the above

6. The articles of Constitution dealing with Official Language are:

a) 343
b) 351
c) 343 to 351
d) 342 to 352
e) None of the above

7. The responsibility of Implementation and Compliance of Official Language policy of

Government of India lies with:
a) Hindi Officer
b) Administrative Head of the concerned department
c) Hindi Representative
d) Second line Manager
e) None of the above

8. As per the Official Language Rules, 1976, Maharashtra state falls under which Language
Region?
a) Region A
b) Region C
c) Region D
d) Region B
e) None of the above

9. The Official Language Rules are applicable to all the states and union territories except:
a) Kerala
b) Karnataka
c) Jammu & Kashmir
d) Tamil Nadu
e) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 229

10. Official Language Implementation Committee meeting has to be conducted once in a:
a) Quarter
b) Month
c) Half Year
d) Year
e) None of the above

11. Town Official Language Implementation Committee (TOLIC) meetings are held:
a) Monthly
b) Quarterly
c) Yearly
d) Half Yearly
e) None of the above

12. The percentage of originating correspondence in Hindi in Language Region ‘C’ is:
a) 55%
b) 90%
c) 100%
d) No percentage fixed
e) None of the above

13. The Official Language Act was passed in the year:

a) 1949
b) 1947
c) 1963
d) 1956
e) None of the above

14. The numerals used in Official Language Hindi are:

a) Arabic Numbers
b) Devnagari Numbers
c) Roman Numbers
d) International form of Indian numbers
e) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 230

15. An in-house Hindi magazine published by Official Language Section, Head Office is:
a) Shreyas
b) Deeksha
c) Canarajyoti
d) Today’s Tidings
e) None of the above

16. Name of the Award instituted by Canara Bank for motivating implementation of Hindi at
branch/office level:
a) RajbhashaAkshayYojana
b) RajbhashaPuraskarYojana
c) Canara Bank RajbhashaAkshayYojana
d) Hindi Award Yojana
e) None of the above

17. Hindi written in Devnagari script is our:

a) National Language
b) Link Language
c) Official Language
d) Local Language
e) None of the above

18. Andaman & Nicobar Islands falls under which of the following Language Regions?
a) Region B
b) Region C
c) Region A
d) Region D
e) None of the above

19. The branch/office wherein 80% or more employees have working knowledge in Hindi
has to be notified under the Official Gazette under which rule of Official Language Rules,
1976?
a) Rule 10
b) Rule 11
c) Rule 8(4)
d) Rule 10(4)
e) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 231

20. Under rule 11 of Official Language Rules, 1976, the rubber stamps are to be got made
in?
a) Bilingual (Hindi-English)
b) English only
c) Hindi only
d) Trilingual (Regional Language-Hindi-English)
e) None of the above

21. Which among the following is considered as ‘Proficiency in Hindi’ as per definition given
under Official Language Rules, 1976?
a) Passed matriculation with Hindi as medium of examination
b) Passed matriculation with Hindi as one of the subjects
c) Passed 8th standard with Hindi as a subject
d) Both (a) and (b)
e) None of the above

22. Name of the Award instituted by Canara Bank for motivating employees for use of Hindi
in their day to day official work:
a) RajbhashaAkshayYojana
b) RajbhashaPuraskarYojana
c) Canara Bank RajbhashaPuraskarYojana
d) Hindi Award Yojana
e) None of the above

23. The Percentage of Noting in Hindi in Language Region ‘A’ is:

a) 50%
b) 30%
c) 75%
d) No percentage fixed
e) None of the above

24. The Percentage of Noting in Hindi in Language Region ‘B’ is:

a) 50%
b) 30%
c) 75%
d) No percentage fixed
e) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 232

25. The Percentage of Noting in Hindi in Language Region ‘C’ is:
a) 50%
b) 30%
c) 75%
d) No percentage fixed
e) None of the above

ANSWER KEYS –
1. b 6. c 11. d 16. c 21. a
2. b 7. b 12. a 17. c 22. c
3. b 8. d 13. c 18. c 23. c
4. d 9. d 14. d 19. d 24. a
5. c 10. a 15. c 20. a 25. b

CIBM, Manipal-Multiple Choice Questions – 2020 233

 Digital Products
1. What is the name of our Mobile banking app?
a) Candi
b) Canara Mobile
c) Canara wallet
e) Canara Onlin

2. What is the full form of Meity?

a) Ministry of Electronics and Information
b) Ministry of Electronics and Information technology
c) Ministry of Electronics and Information Systems
d) Ministry of Electronics and Information strategy

3) What is meant by EMV ?

a) Europay Master Visa
b) European Member Visa
c) European Merchant Visa
d) European Mobile Visa

4) What is the MDR for Credit Cards issued under Platinum/Super Premium Variant?
a) 2.30% + GST
b) 1.5% + GST
c) 2.50 % + GST
d) 2.25 % + GST

5) What is the MDR for Credit Cards issued under Gold/ Premium Variant?
a) 2.30% + GST
b) 1.5% + GST
c) 2.50 % + GST
d) 2.25 % + GST

6) What is the MDR for Credit Cards issued under classic/standard Variant?
a) 2.30% + GST
b) 1.5% + GST
c) 2.50 % + GST
d) 2.25 % + GST

7) What is the MDR for International Debit and Credit cards ?

a) 3.00% + GST
b) 1.5% + GST
c) 2.50 % + GST
d) 2.25 % + GST

CIBM, Manipal-Multiple Choice Questions – 2020 234

8) What is the MDR for transactions through Visa/Master Debit Cards for Small Merchants
with turnover less than INR 20 lakh using POS machines(with a cap of INR 200)?
a) 0.40% + GST
b) 1.5% + GST
c) 2.50 % + GST
d) 2.25 % + GST

9) What is the MDR for transactions through Visa/Master Debit Cards for other
Merchants with turnover more than INR 20 lakh using POS machines with transaction
value upto INR 2000 (with a cap of INR 200)?
a) 0.45% + GST
b) 1.5% + GST
c) 0.40 % + GST
d) 2.25 % + GST

10) What is the MDR for transactions through Visa/Master Debit Cards for other
Merchants with turnover more than INR 20 lakh using POS machines with transaction
value more than INR 2000 (with a cap of INR 900)?
a) 0.40% + GST
b) 1.5% + GST
c) 2.50 % + GST
d) 0.90 % + GST

11) What is the MDR for transactions through Visa/Master Debit Cards for Small
Merchants with turnover less than INR 20 lakh using Bharath QR (with a cap of INR
200)?
a) 0.30% + GST
b) 1.5% + GST
c) 2.50 % + GST
d) 2.25 % + GST

12) What is the MDR for transactions through Visa/Master Debit Cards for other
Merchants with turnover more than INR 20 lakh using Bharath QR with transaction
value upto INR 2000 (with a cap of INR 200)?
a) 0.45% + GST
b) 1.5% + GST
c) 0.30 % + GST
d) 2.25 % + GST

CIBM, Manipal-Multiple Choice Questions – 2020 235

13) What is the MDR for transactions through Visa/Master Debit Cards for other
Merchants with turnover more than INR 20 lakh using Bharath QR with transaction
value more than INR 2000 (with a cap of INR 1000)?
a) 0.40% + GST
b) 1.5% + GST
c) 2.50 % + GST
d) 0.80 % + GST

14) What is the MDR for Rupay Debit cards?

a) 2.30% + GST
b) 1.5% + GST
c) NIL
d) 2.25 % + GST

15) What are the services charges for issuance of a fast tag?
a) INR 100 + GST
b) INR 150 + GST
c) INR 50 + GST
d) INR 165 + GST

16) What are the services charges for online reloading of a Fast tag?
a) INR 100 + GST
b) INR 150 + GST
c) INR 10 + GST
d) INR 165 + GST

17) What are the charges for first time generation of Green PIN for debit card
a) INR 100 + GST
b) INR 150 + GST
c) INR 10 + GST
d) NIL

18) What are the charges for Re generation of Green PIN for debit card
a) INR 100 + GST
b) INR 150 + GST
c) INR 50 + GST
d) NIL

19) What is the annual fees for basic debit card ?

a) INR 120 + GST
b) INR 150 + GST
c) INR 50 + GST
d) NIL

CIBM, Manipal-Multiple Choice Questions – 2020 236

20) What is the annual fees for Platinum debit card ?
a) INR 100 + GST
b) INR 150 + GST
c) INR 200 + GST
d) NIL

21) What is the annual fees for Select debit card ?

a) INR 1000 + GST
b) INR 150 + GST
c) INR 2000 + GST
d) NIL

22) What are the charges for Hotlisting and issuance of Replacement of debit card ?
a) INR 100 + GST
b) INR 150 + GST
c) INR 50 + GST
d) NIL

23) What are the charges for Issuance of International Travel Prepaid card ?
a) INR 100 + GST
b) INR 150 + GST
c) INR 200 + GST
d) NIL

24) What are the charges for Reloading of International Travel Prepaid card ?
a) INR 100 + GST
b) INR 150 + GST
c) INR 50 + GST
d) NIL

25) Which month was celebrated as National Cyber Security Awareness Month?
a) October 2020
b) November 2020
c) September 2020
d) August 2020

26) What is the standard rent for Bharath QR per month ?

a) INR 100 + GST
b) INR 150 + GST
c) INR 50 + GST
d) NIL

CIBM, Manipal-Multiple Choice Questions – 2020 237

27) What is the standard rent for M POS per month ?
a) INR 100 + GST
b) INR 150 + GST
c) INR 50 + GST
d) INR 300 + GST

28) What is the standard rent for PSTN (Public switched telephone network) POS ( land line
using fixed POS) per month ?
a) INR 300 + GST
b) INR 150 + GST
c) INR 400 + GST
d) NIL

29) What is the standard rent for GPRS POS with out /with printer per month ?
a) INR 100 /150+ GST
b) INR 450/550 + GST
c) INR 50/100 + GST
d) NIL

30) What is the standard rent for Android POS with out /with printer per month ?
a) INR 700 /750+ GST
b) INR 450/550 + GST
c) INR 600/650 + GST
d) NIL

31.Bank is required to report Cyber Attack incidents to the Reserve Bank’s Cyber Security
and IT Examination (CSITE) Cell and other regulators within
a. 24 hours
b. 1 hour
c. 2-6 hours
d. 7 days

32.Canara Rupay Select Debit Card Accident Death & Permanent Total disability Insurance’
cover by NPCI is
a. 4 lakhs
b. 8 lakhs
c. 10 lakhs
d. None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 238

33.ADMIN Card is
a. A debit card used for Cash withdrawal
b. Variant of Credit Card
c. Is used for updating the ATM Cash position in the ATM Switch after loading cash
d. No such card

34. Maximum number of days credit customer gets by using our Credit card is
a. 45 days
b. 50 days
c. 15days
d. 60 days

35.Archival policy deals with( select the most appropriate response)

a. Describes the process of consolidating and moving data from a primary online storage
medium to less-expensive near-line secondary storage medium
b. The process of consolidating and moving data from a primary online storage medium to
less-expensive near-line secondary storage medium and archived information available
for use at a later date
c. It is taking data back up for inspection purpose
d. None of the above

36.A service model in which data is maintained, managed, backed up remotely and made
available to users over a network
a. Archival of data
b. Cloud service
c. Disaster recovery service
d. None of the above.

37. As per Enterprise Fraud Risk Management (EFRM) rules implemented in Internet
Banking Funds Transfer will be enabled in phased manner. Choose which of the
following is not true.
a.First 6 hours – Fund transfer is allowed upto Rs.10000/-
b.From 6 Hours to 24 hours – Fund transfer facility with a cap of Rs 50,000/-
c.After 24 Hours - Full Limit as applicable
d. First 6 hours – Fund transfer is not allowed

CIBM, Manipal-Multiple Choice Questions – 2020 239

 38. Annual fee charged by our Bank for Canara Rupay Select Debit Card is
a. Rs.500-/ plus GST
b. Rs.1000/- plus GST
c. Rs. 100/- plus GST
d. No charges is applicable.

39. One Time Password [OTP] based cash withdrawal at our ATMs for a per day limit of
above Rs.10000/- introduced for our Debit Card holders having
a. All SB, Current and OD accounts
b. All SB, Current and OD accounts except NRE account
c. All SB, Current and OD accounts except NRE and NRO account
d. None of the above

40. Where to enable e-commerce/POS transactions for Debit and Credit Card
a. ATM
b. Mobile Banking
c. Internet banking
d. both a and b.

41. Which of the following services will be not be discontinued w.e.f 01.11.2020 ?
a. Canara e infobook
b. mServe
c. Canara Cart
d. Candi

Answer Key –

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
a b a c d b a a c d a c d c a
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
c d c a c a b c c a c d c b d
31 32 33 34 35 36 37 38 39 40 41
c c c b b b a b c d d

CIBM, Manipal-Multiple Choice Questions – 2020 240

 CANARA BANK POLICIES

1. In case verification of the entry reported to be erroneous by the customer does not
involve a third party, the bank shall arrange to complete the process of verification
within a maximum period of ...........working days from the date of reporting of erroneous
debit.
a. Seven
b. Fifteen
c. Twelve
d. Thirty

2. In case the verification involves a third party, the bank shall complete the verification
process within a maximum period of ............... from the date of reporting of erroneous
transaction by the customer.
a. One month
b. 15 days
c. 21 days
d. 07 days

3. In respect of erroneous transactions reported by customer pertaining to credit card

operations, the bank shall provide explanation and, if necessary, documentary evidence
to the customer within a maximum period of .............days from the date the customer
notifies the Bank regarding the erroneous debit.
a. 45
b. 60
c. 90
d. 180

4. In case where neither the Bank is at fault nor the customer, but the fault lies elsewhere
in the system, the Bank will help in restoring the actual amount involved. As a gesture of
goodwill and to deal with the customers fairly, the Bank will compensate the customer
with Rs.100/- per Rs.5000/- of the amount involved, subject to a maximum of
Rs................. for each instance.
a. 2000
b. 5000
c. 1000
d. 10000

CIBM, Manipal-Multiple Choice Questions – 2020 241

5. In case of extraordinary delay in collection of local and outstation cheques interest will
be paid at the rate of .....% above the corresponding term deposit rate.
a. 1
b. 2
c. 3
d. 5

6. What is extraordinary delay means in above case.

a. Delay more than 30 days b. Delay more than 60 days
c .Delay more than 90 days d. Delay more than 180 days.

7. Time frame for collection of cheques drawn on State Capitals / major cities/ other
locations to be ................. days respectively.
a. 7/10/14
b. 10/14/21
c. 14/21/28
d. 14/10/07

8. The Bank shall reimburse the account holder related expenses for obtaining duplicate
instruments (in case of loss in transit) and also interest at ............rate for reasonable
delays occurred in obtaining the same.
a. 5%
b. 2%
c. SB
d. TD

9. Bank will pay interest on the amount of the cheque for a further period of ..........days at
Savings Bank rate to provide for likely further delay in obtaining duplicate cheque/
instrument and collection thereof.
a. 7 days
b. 14 days
c. 15 days
d. 21 days

10. For Delays in collection of bills the lodgers’ bank shall pay interest to the lodger for the
delayed period in respect of collection of bills at the rate of...........% p.a. above the rate
of interest payable on balances of Savings Bank accounts.
a. 0.50
b. 1.00
c. 1.50
d. 2.00

CIBM, Manipal-Multiple Choice Questions – 2020 242

11. In the event of receipt of any complaint from the customer that the bank‟s
representative / courier or DSA has engaged in any improper conduct or acted in
violation of the Code of Bank‟s Commitment to Customers which the bank has adopted
voluntarily, bank shall take appropriate steps to investigate and to handle the complaint
and to compensate the customer within....... days from the date of receipt of the
complaint for financial losses, if any.
a. 5
b. 7
c. 15
d. 30

12. It is mandatory for bank to reimburse the customer the amount wrongfully debited on
account of failed ATM within a maximum period of ...... days from the receipt of the
complaint.
a. T+2
b. T+5
c. T+7
d. T+10
13. For any failure to re-credit the customer's account beyond stipulated period from the
date of receipt of the complaint, bank shall pay compensation of Rs ..... per day SUO
MOTO to the aggrieved customer.
a. 50/-
b. 75/-
c. 100/-
d. 120/-

14. Any customer is entitled to receive compensation for delay (related to ATM), only if a
claim is lodged with the issuing bank within ..... days of the date of the transaction.
a. 7
b. 30
c. 60
d. 90

15. In case of Issue of Duplicate Demand Draft, delay beyond the above stipulated period,
interest at the rate applicable for Fixed Deposit for corresponding period will be paid as
compensation to the customer for such delay. What is the stipulated period means.
a. 15 days
b. 30 days
c. 45 days
d. 60 days

CIBM, Manipal-Multiple Choice Questions – 2020 243

16. In terms of the guidelines for lenders liability and the Code of Bank's Commitment to
customers adopted by the Bank, the Bank would return to the borrowers all the
securities/documents/title deeds to mortgaged property within ....... days of repayment
of all dues agreed to or contracted.
a. 7
b. 10
c. 12
d. 15

17. The delay in revision of pension and payment of arrears to pensioners including non
State resident pensioners, the Bank shall compensate the pensioners' for the delayed
period beyond the due date at ......% penal interest.
a. 3
b. 5
c. 8
d. 15

18. The Compliance Department should have an Executive of the cadre not less than in the
rank of........... or equivalent designated as Chief Group Compliance Officer (CGCO) with
overall responsibility for coordinating the identification and management of the Bank's
compliance risk and supervising the activities of other compliance function staff.
a. DGM
b. AGM
c. CM
d. DM
19. The CGCO may be appointed for a minimum fixed tenure of ......... year and the same
shall be informed to the Board, Audit Committee of the Board and also to RBI.
a. 5
b. 3
c. 2
d. 1

20. As per the recommendations of Basanth Seth Committee on Audit System and revised
Inspection Policy, ......% weightage is given to Control Risk and .......% weightage to
Business Risk.
a. 60, 40
b. 50, 50
c. 80, 20
d. 40, 60

CIBM, Manipal-Multiple Choice Questions – 2020 244

21. The Compliance Department shall place a ............... report to the ACB for reviewing the
compliance function, covering the compliance of directions received from the regulators
(including IRDA, SEBI etc), compliance failures observed on the basis of all audit /
inspection reports and the meeting held with Chief General Manager, Department of
Banking Supervision at Central Office of RBI on compliance issues.
a. Monthly
b. Fortnightly
c. Quarterly
d. Weekly

22. The Risk Management Wing will monitor the performance of all new products for a
period of..... months from regulatory perspective.
a. 3
b. 6
c. 12
d. 18

23. All Sanctions in respect of retail loans to be reported in monthly register:

a. NB 140
b. NB 139
c. NB 117
d. NB 179

24. In case of branch sanction up to cut of limit of Rs.5lacks (FB+NFB), monthly sanction
registers for all sanctions (including RAH/SME Sulabh/RO/CO) are to be reported and
placed for review to the Next Higher Authority before ......of the succeeding month.
a. 5th
b. 7th
c. 10th
d. 15th

25. For RAHs, monthly register of ........... is to be placed to RO for review.

a. NB 170
b. NB 140
c. NB 117
d. NB 179

26. Apart from the normal sanction review, a thorough review of taken over accounts other
than Retail Lending Loans is to be carried out at .......months intervals for one year.
a. 3
b. 4
c. 5
d. 6

CIBM, Manipal-Multiple Choice Questions – 2020 245

27. CA&M wing shall review on holding of operation and place office note on .........basis to
MC of the Board.
a. Monthly
b. Quarterly
c. Half Yearly
28. Yearly.

29. Sanctions made by Circle Head CAC, submission for review is to be done on fortnightly
basis within .....days from closure of the fortnight.
a. 3
b. 4
c. 5
d. 7

30. Bank has reduced the threshold limit applicable for pre-release Audit from existing
Rs.5.00 crore and above to Rs............ and above and also introduced the system of
obtaining „Enforceability Certificate‟ from panel advocate (other than the advocate who
had given LSR) in relation to mortgage transactions.
a. 100 Lakh
b. 200 lakh
c. 50 lakh
d. 300 lakh

31. Remuneration to Panel advocate conducting Legal Audit with minimum of Rs......... per
mortgage and maximum of Rs.......... plus applicable GST for each borrowal account to be
absorbed in General Charges.
a. 5000/-, 50000/-
b. 5000/-, 25000/-
c. 1000/-, 5000/-
d. 1000/-, 10000/-

32. Branches/PCBs shall confirm compliance to Pre-Release Audit observations before

disbursement and submit certificate in ........
a. NF 480
b. NF 482
c. NF 490
d. NF 491

CIBM, Manipal-Multiple Choice Questions – 2020 246

33. Branches/Circles shall coordinate with the identified official/Advocate and complete the
Pre-Release Audit within ..........hours from obtention of documentation and ensure that
disbursement is not pending for want of completion of Pre-Release Audit.
a. 96
b. 72
c. 48
d. 24

34. Who is empowered to permit waiver of Pre Release Audit.

a. MD
b. ED
c. GM
d. NO one.

35. The Existing policy guidelines on conducting Legal Audit of title deeds and other
documents, in respect of large value loan accounts with credit exposure of Rs........ crores
and above.
a. 2
b. 3
c. 4
d. 5

36. Subsequent Legal Audits shall be conducted after a gap of .........years from the date of
first Pre disbursement Legal Audit.
a. 1
b. 2
c. 3
d. 4

37. Credit Audit applicable to all fresh sanctions, enhancements/ additional exposures
exceeding cut off limit of Rs ...........cores and above (FB+NFB) .
a. 1
b. 2
c. 3
d. 4

38. Maximum fees payable to external auditor is Rs..........., which can be paid by the branch,
upon getting the report.
a. 5000/-
b. 7000/-
c. 7500/-
d. 9000/-

CIBM, Manipal-Multiple Choice Questions – 2020 247

39. The timeline for closure of credit audit report remarks is ...........months from the date of
the credit audit report.
a. 1
b. 2
c. 3
d. 4

40. A note with details on the status of credit audits allotted, conducted, compliance
sought, pending position and reports closed shall be placed to the Audit Committee of
Executives (ACE).
a. Quarterly
b. Monthly
c. Fortnightly
d. Weekly

41. Who is the authority for Review and Monitoring of Credit Audit and to accord
permission for closure for sanction made by CM/AGM Branch head?
a. AGM/DM- CO overseeing credit review section
b. DGM-CO overseeing credit review section
c. DGM- CAM wing HO
d. GM – CAM wing HO

42. Annual Stock & Receivable Audit should be got compulsorily done in respect of all
borrowal accounts enjoying Fund Based & Non Fund Based (NFB) working capital limits of
Rs.1 Crore & above for Moderate, High and Unrated accounts and Rs...........Crore and
above for Low Risk and Normal risk accounts from our Bank/Banking system.
a. 2
b. 3
c. 4
d. 5

43. The lenders shall report to CRILC, all borrower entities in default (with aggregate
exposure of Rs 50 million and above), on a weekly basis, at the close of business on
every........, or the preceding working day if ........happens to be a holiday.
a. Saturday
b. Monday
c. Wednesday
d. Friday

CIBM, Manipal-Multiple Choice Questions – 2020 248

44. All borrowers with aggregate Exposure of less than Rs.5lacks under SMA classification
falls under:
a. SMA –D
b. SMA –C
c. SMA –B
d. SMA –A

45. A copy of the SMA-D&E accounts along with the status of the accounts and steps taken
shall be submitted ........... to C A & M Wing, HO.
a. Quarterly
b. Monthly
c. Weekly
d. Bi-weekly

46. Large Credit Monitoring package (LCM) is applicable for Sanctioned Limit (both Fund
based & Non Fund based) of Rs.....Crore and above.
a. 5
b. 4
c. 3
d. 1

47. Our bank has put in place a mechanism Agencies for Specialized Monitoring (ASM) to
effectively monitor the post sanction performance of accounts with aggregate exposure
of Rs...... Crs and above periodically in order to detect the financial stress at an early
stage.
a. 250
b. 200
c. 300
d. 350

48. The ASM will complete the assignment within a period of....... . from the end of the
quarter.
a. 1 month
b. 1-3 weeks
c. 6-8 weeks
d. 9-12 weeks

49. The appointment of ASMs shall be for a period of Maximum ....... years.
a. 1
b. 2
c. 5
d. 7

CIBM, Manipal-Multiple Choice Questions – 2020 249

50. ASMs shall be appointed from our empanelled list of LIE/Stock Auditors with more than
.......yrs experience
a. 1
b. 5
c. 7
d. 10

51. Same ASM shall not be entrusted with more than ...... accounts in a year.
a. 5
b. 4
c. 3
d. 2

52. Professional Fee in respect of accounts under Sole Banking and where we are the
Leaders under Consortium/MBA, Professional fees shall be fixed at Rs ...... lakhs per
annum for accounts with total exposure up to Rs 500.00 Crs and Rs ......lakhs per annum
for accounts with Total exposure above Rs 500.00 Crs.
a. 1, 2
b. 1, 1.5
c. 1.5, 2.0
d. 2.0, 2.5

53. The Limit for bringing a Loan account under the purview of Quick Mortality is increased
from Rs 5.00 lakhs to Rs ........ lakhs
a. 10
b. 15
c. 20
d. 25

54. CERSAI fee for modification of Charge Creation for loan more than Rs. 5.0 Lakh would
be.
a. 5
b. 10
c. 50
d. 100

55. The entire process of CERSAI registration and updating of CERSAI Security ID in CBS in
.......is to be completed on the same day of registration.
a. BAM73
b. BAM 74
c. BAM 25
d. BAM 26

CIBM, Manipal-Multiple Choice Questions – 2020 250

56. As per guidelines, Branch has to escalate any EWS known to them on monthly basis and
same has to be updated in the package by CMO (Credit Monitoring Officer) duly marking
the reason for irregularities/ delinquencies of accounts by evaluating all the .........
parameters available in the package.
a. 44
b. 45
c. 42
d. 24

57. Chief Managers and above authorities in Branches, Divisional Managers / Assistant
General Manager at Regional Office/ Circle Office can permit Agriculture financing
beyond ........... considering the size of the advance, cluster of loan proposals, capacity of
the branch to service the account, etc.
a. 16 km
b. 20 km
c. 25 km
d. 30 km

58. Margin for Agriculture Loans up to Rs. 1.6 lakhs

a. 15
b. 10
c. 20
d. 0

59. In case party is already having a development/investment loan, and total exposure
including the proposed exposure (KCC, Dairy loan) exceeds Rs.......... then mortgage of
land is to be stipulated in addition to hypothecation of crops cultivated.
a. 100000
b. 160000
c. 300000
d. 500000

60. Gold loan – Handling charges to be collected in case of Gold Loans Closed within .........
month from date of Sanction/Disbursement
a. 6
b. 5
c. 4
d. 3

CIBM, Manipal-Multiple Choice Questions – 2020 251

61. Safe Keeping charges for Gold Loans will be applicable after........ days of the expiry of
the prescribed tenure of gold loan.
a. 7
b. 15
c. 30
d. 60

62. It is mandatory to engage Second Jewel appraiser in branches, where average no. of
Gold loans granted is more than..... Loans per day, during the previous Financial Year.
a. 10
b. 20
c. 25
d. 15

63. Fresh agri loans above Rs. 3.00lacks and up to and including Rs.10.00lacks for High Risk
accounts, may be permitted by.............
a. DGM-CO-CAC
b. GM-CO-CAC
c. RO HEAD – CAC
d. DM-RO

64. Overall maximum Gold Loan limit per customer may be fixed at Rs. 20.00 Lakhs.
However for crop cultivation the quantum to be restricted to Rs.10.00 lakhs per
customer.
a. 10, 10
b. 20, 03
c. 20, 05
d. 20, 10

65. Upto 35 HP tractor the applicant should have at least ........ acres of perennially irrigated
land or ...... acres of dry land so as to ensure sufficient work of at least 1000 to 1200
hours per year including a minimum of 500 hours of work on the farmers own land.
a. 6, 12
b. 08, 16
c. 6, 08
d. 6. 06

66. Above 35 HP tractor the applicant should have at least ...... acres of perennially irrigated
land or .......acres of dry land so as to ensure sufficient work of at least 1200 to 1400
hours per year including a minimum of 600 hours of work on the farmers own land.
a.6, 12 b.8,16
c.9, 18 d.5, 10

CIBM, Manipal-Multiple Choice Questions – 2020 252

66. As per RBI definition of Default: Default is considered to have occurred when
a. when classified as SMA
b. when become loss asset
c. an asset is classified as NPA
d. an asset is classified as Doubtful

67. Which is not correct w.r.t. Expected Loss (EL)?

a. average anticipated credit loss
b. loss in the normal course of business due to default
c. losses are viewed as a cost component of doing business
d. losses are covered by keeping capital as cushion

68. Risk Management Committee of the Board (RMCB) is a Board level sub-committee
headed by
a. Chairman of the Bank
b. Managing Director & Chief Executive Officer (MD & CEO)
c. Executive Directors
d. Chief General Manager

69. MRTWG is responsible for considering detailed aspects of all credit risk models. What is
the full form of MRTWG?
a. Model Review Technical Working Group
b. Matrix Rating Treatment Working Group
c. Matrix Review Technical Working Group
d. Model Rating Technical Working Group

70. Who is empowered to permit credit facilities to new borrower clients rated High Risk.
a. GM-HO-CAC
b. CGM-HO-CAC
c. ED CAC
d. CAC of the Board

71. The rating is required to be reviewed periodically and updated at ---------------- on a

minimum to re-assess the credit risk of customers.
a. half-yearly intervals
b. yearly intervals
c. once in two years
d. once in three years

CIBM, Manipal-Multiple Choice Questions – 2020 253

72. Unlike a Bank’s exposure to credit risk through a loan, where the exposure to credit risk
is unilateral and only the lending bank faces the risk of loss, the counterparty credit risk is
bilateral in nature i.e. the market value of the transaction can be positive or negative. At
the time of default, economic loss would occur if the transactions with the counterparty
has a -------------------.
a. zero or negative economic value
b. zero or positive economic value
c. positive economic value
d. negative economic value

73. The first step in the measurement of credit risk is to perform asset categorization. The
Bank's credit risk exposures are required to be classified into six exposure categories.
Which of the following is not one of them?
a. Retail
b. MSME
c. Equity
d. Others

74. Who cannot enter into a contract of partnership with another person or persons.
a. HUF
b. Trust
c. Company
d. No such clause

75. Loans sanctioned by banks to NBFC( other than MFIs) for on-lending to MSME sector up
to Rs.------- (per borrower) will be classified in Priority Sector.
a. 5 lakhs
b. 10 lakhs
c. 20 lakhs
d. 50 lakhs

76. Loans sanctioned by banks to NBFC( other than MFIs) for on-lending to Agri sector up to
Rs.------- (per borrower) will be classified in Priority Sector.
a. 5 lakhs
b. 10 lakhs
c. 20 lakhs
d. 50 lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 254

77. Bank may absorb the insurance premium under ECIB (WT-Pre-shipment Credit) of ECGC
selectively on a case to case basis. The insurance premium in respect of ECIB (WT-Post-
shipment credit)
a. may be absorb by the bank.
b. is borne by the Bank.
c. bank has not availed insurance for Post-shipment Credit.
d. to be recovered from exporters

78. Which of the following is NOT a prevailing Retail Lending product in the our Bank?
a. Canara Site,
b. Swarna Loan
c. ESOP Scheme
d. Canara Sugam

79. Which of the following is NOT subjected to scoring for facilitating evaluation of
creditworthiness?
a. Canara rent
b. Canara mortgage
c. Canara Pension
d. All of the above

80. Bank shall have an exposure ceiling to Commercial Real Estate which would be reviewed
and revised annually. However, the maximum exposure to a particular project by the
Bank shall not exceed 3.33 times of the Tangible Net Worth of the borrower or -------------
- (whichever is lesser).
a. Rs.100 Crore
b. Rs.150 Crore
c. Rs.300 Crore
d. Rs.500 Crore

81. For Commercial Real estate exposure, where repayment is made from sale of the
property, repayment period is upto --------.
a. 3 years from DCCO
b. 5 years from DCCO
c. 7 years from DCCO
d. 9 years from DCCO

82. For Commercial Real estate exposure, where repayment is made out of lease rentals
from the property, repayment period is upto --------------------.
a. 7 years including moratorium
b. 10 years including moratorium
c. 10 years excluding moratorium
d. 12 years including moratorium

CIBM, Manipal-Multiple Choice Questions – 2020 255

83. What is the minimum margin for advances / financing for subscribing to IPO / issue of
guarantees for Capital Market operations?
a. 10%
b. 15%
c. 25%
d. 50%

84. which of the following activities undertaken by NBFCs are eligible for bank credit
a. against receivables arising on account of lease
b. bills discounted / rediscounted by NBFCs
c. unsecured loans / inter-corporate deposits by NBFCs
d. further lending to individuals for subscribing to Initial Public Offerings (IPOs)

85. While financing for computer hardware minimum margin shall be ------.
a. 10%
b. 25%
c. 30%
d. 40%

86. Branches have to report all cases of actual/suspected frauds immediately on detection
to Review & Reporting (R&R) Section, Recovery, Legal and Fraud Prevention Wing, Head
Office, Bengaluru
a. Same day
b. Within 24 Hours
c. 2 Days
d. Within a Week

87. Which of the following is not having the office of Panel for Resolution of Disputes (PRD)
at present?
a. Delhi for Northern Grid
b. Kolkata for Eastern Grid
c. Chennai for Southern Grid
d. Mumbai for Western Grid

88. The Chairman of PRD is from Reserve Bank of India, members of the panel will not
include any representative from the
a. Bank
b. NGO
c. Judiciary
d. Collage/ Universities

CIBM, Manipal-Multiple Choice Questions – 2020 256

89. Time period for filing a case to PRD from the date of detection or receipt of customers’
complaints, whichever is earlier is
a. 30 days
b. 1 months
c. 2 months
d. 3 months

90. Which is NOT the responsibility of the Presenting bank in Clearing

a. physical feel of the instrument(s),
b. any tampering/ alteration/ discoloration visible to the naked eye
c. amount in words and figures does not differ and
d. authenticity of the drawer’s signature

91. Customer can register complaint if he/she is not satisfied with the services provided by
the Bank (246/2020)
a) Orally
b) Writing
c) Over telephone
d) All of the above

92. Customer registered complaint in writing, the bank shall give him acknowledgement
within(246/2020)
a. 15 days
b. 3 days
c. A Week
d. 30 days

93. The bank shall give response after examining the complaint received from customer
within(246/2020)
a. 30 days of receipt of complaint
b. 45 days of receipt of complaint
c. 60 days of receipt of complaint
d. 15 days of receipt of complaint

94. What we need to inform to customer who wish to make a complaint(246/2020)

a. Where to make complaint
b. How a complaint should be made
c. What to do if customers are not happy about the outcome
d. All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 257

95. For redressal of complaints, the Bank has appointed the Internal Ombudsman a retired
senior officer of the rank of............. from the other bank(246/2020)
a. Deputy General Manager
b. Assistant General Manager
c. General Manager
d. Chief Manager

96. Who is responsible for resolution of the complaints/grievances in respect of customer

service by the Branch(246/2020)
a. Any officer at the branch
b. Any employee of the branch
c. Second in command at the branch
d. Branch Manager

97. Canara Bank has developed an in house portal in which all the complaints are registered
and redressed(246/2020)
a. Canara Public Grievance Redressal Package (CPGRS)
b. Canara Public Grievance Solution Package (CPGSP)
c. Canara Public Complaint Solution Package (CPCSP)
d. Canara Public Solution Package (CPSP)

98. Customers Day is observed on ........very month(246/2020)

a. 10th
b. 15th
c. 20th
d. 30th

99. customer may approach Banking Ombudsman appointed by Reserve Bank of India
under Banking Ombudsman Scheme, 2006 ,if complaints are not redressed within
(246/2020)
a. 10 days
b. 15 days
c. One month
d. 7 days

CIBM, Manipal-Multiple Choice Questions – 2020 258

100. Dishonour of a cheque for the reason insufficient funds of value less than Rs. 1
Crore will attract stoppage of cheque book facility and closure of account on
.....occasion during financial year (244/2020)
a. 3
b. 6
c. 12
d. 9

101. Bank will be constrained to close the account, If ECS mandates are dishonoured
of value less than 1 Crore for the reason insufficient funds on ......occasions during the
financial year (244/2020)
a. 4
b. 6
c. 12
d. 9

102. Dishonour of a cheque for the reason insufficient funds of value Rs. 1 Crore will
and above attract stoppage of cheque book facility and closure of current account on
.....occasion during financial year (244/2020)
a. 3
b. 4
c. 12
d. 9

103. Cheques dishonoured for the reason insufficient funds in respect of all accounts
should be returned /dispatched to the customers without delay, in any case within .........
hours (244/2020)
a. 48
b. 24
c. 60
d. 72

104. Cheque /ECS Return Charges – Local and Outstation for All Accounts
[SB/CA/OD/OCC], Inward returns Upto 1 Cr is (244/2020)
a. 250 +GST
b. 100 +GST
c. 500 +GST
d. 1000 +GST

CIBM, Manipal-Multiple Choice Questions – 2020 259

105. Cheque /ECS Return Charges – Local and Outstation for All Accounts
[SB/CA/OD/OCC], outward returns above 1 Cr is (244/2020)
a. 250 +GST
b. 100 +GST
c. 500 +GST
d. 1000 +GST

106. The customer shall not be unfairly discriminated against on grounds(245/2020)

a. Gender,
b. Age,
c. religion,
d. All of the above

107. Bank provides information on interest rates, fees and charges (245/2020)
a. Notice Board in the branches
b. Website
c. Through help-desk
d. All of the above
108. The customer shall be given ......days time to opt out/close the account
(245/2020)
a. 60
b. 20
c. 30
d. 45

109. Communicate unambiguously the information about discontinuation of

particular products, relocation of their offices, changes in working hours, etc with
advance notice of at least .....days(245/2020)
a. 60
b. 30
c. 20
d. 45

CIBM, Manipal-Multiple Choice Questions – 2020 260

110. Customer's personal information as private and confidential for any purpose
unless (245/2020)

a. Asked by anyone
b. Sought by spouse
c. Disclosure is compelled by law / regulation
d. Required by neighbour of customer
Answer keys

1 A 21 C 41 D 61 C 81 A 101 A
2 A 22 B 42 D 62 C 82 C 102 B
3 B 23 D 43 D 63 D 83 D 103 B
4 C 24 B 44 B 64 A 84 A 104 C
5 D 25 D 45 D 65 B 85 D 105 D
6 C 26 D 46 A 66 C 86 B 106 D
7 A 27 B 47 B 67 D 87 B 107 D
8 C 28 D 48 B 68 A 88 A 108 A
9 C 29 B 49 D 69 A 89 D 109 B
10 D 30 D 50 D 70 D 90 D 110 C
11 B 31 B 51 C 71 B 91 D
12 B 32 C 52 B 72 C 92 C
13 C 33 D 53 D 73 B 93 A
14 B 34 D 54 A 74 A 94 D
15 A 35 C 55 C 75 C 95 C
16 D 36 C 56 D 76 B 96 D
17 C 37 A 57 D 77 B 97 A
18 A 38 C 58 B 78 D 98 B
19 D 39 A 59 D 79 D 99 C
20 C 40 A 60 C 80 B 100 B

CIBM, Manipal-Multiple Choice Questions – 2020 261

 Documentation
Q1. “Documentation means any matter expressed or described upon any substance by
means of letters, figures or marks or by more than one of these means, intended to be
used or which may be used, for the purpose of recording that matter” is defined in:
a. Banking Regulation Act
b. Reserve Bank of India Act
c. Negotiable Instrument Act
d. Indian Evidence Act

Q2. Which of the following is not the very purpose of documentation?

a. To create a record of transaction
b. To create a valid and effective charge on securities
c. To use as legal recourse of recovery, in case of need
d. To restrict customer to go to some other bank

Q3. Which of the following is not an example of defective documents?

a. Document left partially blank
b. Obtention of photo copies of loan agreements
c. Adequately stamped or properly stamped document
d. Document with over writings / erasing without proper authentication by the borrower

Q4. Unstamped or inadequately stamped or improperly stamped document is a typical

case of:
a. Effective Document
b. Defective Document
c. Valuable Document
d. Legally enforceable Document

Q5. Computation of limitation when different persons have executed the documents on
different dates will be:
a. From the date of first execution
b. From the date of last execution
c. Can be either from first execution or last execution
d. It will be a defective document.

CIBM, Manipal-Multiple Choice Questions – 2020 262

Q6. Cases where more than one illiterate executants are there:
a. Single NF 821may be obtained
b. Separate NF 821shallbeobtained
c. Single NF 821may be obtained provided the attester know sell the illiterate persons.
d. Irrespective of ate stork now sell the illiterate persons or not separate NF 821 shall be
obtained.

Q7. ‘NF-803-Letter Evidencing Execution of Documents’ should be signed by:

a. The employees whose names appear in the agreement.
b. The employees whose names appear in the agreement and the Branch Head.
c. All the borrowers and co-borrowers/ guarantors.
d. All the borrowers and co-borrowers/ guarantors and the Branch Head.

Q8. In which of the following instruments the Stamp Duty does not differs from State to
State?
a. Agreement
b. Power of Attorney
c. AOD
d. Promissory Notes

Q9. The most effective method of cancellation of stamp is:

a. Signature start son the document, goes over the stamp.
b. Signature start son the document, goes over the stamp and may extend beyond the
stamp on the document.
c. Signature starts on the stamp and may extend beyond the stamp on the document.
d. Entire signature is on the stamp and not extending on to the document.

Q10. Keeping in and taking out loan papers from double lock for any purpose is to be
recorded in:
a. NB-132
b. NB-115
c. NB-175
d. NB-27

CIBM, Manipal-Multiple Choice Questions – 2020 263

Q11. Where the loan is sanctioned to power of attorney holder, maintenance of loan
account is to be done:
a. Only in the name of the ‘principal’ represented by the POAholder (agent).
b. Jointly in the name of the ‘principal’ and the POA holder(agent).
c. Only in the name of the agent within force POA from the principal.
d. Either in the name of the ‘principal’ or the POA holder(agent).

Q12. Any contractente red into with amino:

a. The minor cannot ratify the same before attaining majority.
b. The minor cannot ratify the same even after attaining majority.
c. It isvoidabinitio i.e.,from the very beginning.
d. It isvoidabinitio and the minor cannot ratify the same even after attaining majority.

Q13. Documents/instrumentsattractingstampduty shouldbeadequatelystamped.

a. Beforethetimeofexecution
b. Atthetimeofexecution
c. Before or atthetimeofexecution
d. Any time after execution

Q14. In case document is to be executed partly at ‘Advancing Branch’ and partly at

‘Executing Branch’ (the two branchesbeing situated at two different States):
a. Document should be completed (filled in) at the ‘Advancing Branch’ by duly stamping
(stampdutyasapplicabletothatState) and go executed by the part iesavailab leat their
end.
b. Send the document to‘Executing Branch’ forcompletion of its execution by the other
partiesattheirend.
c.In case the stamp duty is higher in that area (Executing State), differential stamp duty
(as applicable to that State) should be paid before getting the document executed by
such other parties at their end.
d. All the above mentioned steps are a must.

Q15. Extension of limitation period can be done by obtaining:

a. AOD from the borrower.
b. AOS from the borrower.
c. LOR from the borrower.
d. AOD/AOS/LOR from the borrower.

CIBM, Manipal-Multiple Choice Questions – 2020 264

Q16. Limitation period for Money repayable by a mortgagor on demand and where no
installment repayments are agreed to is:
a. 3 Years
b. 12 Years
c. 15 Years
d. 30 Years

Q17. In case of Education Loan the time from which period of limitation will begin:
a. Date of execution of loan documents.
b. Date of completion of course.
c. Date of commencement of repayment.
d. Three years from the date of execution of loan documents.

Q18. AOD from legal heirs is to be obtained on:

a. NF-761 with two witnesses.
b. NF-760 with two witnesses.
c. NF-761 with one witness.
d. NF-761 with one witness.

Q19. Mortgage by deposit of title deeds is known as:

a. Simple Mortgage
b. Equitable Mortgage
c. Anomalous Mortgage
d. English Mortgage

Q20.Deposit of all the available original documents of title, with the concerned branch with
a letter of undertaking to create charge/ mortgage in favour of the bank when called
upon to do so, is known as:
a. Mortgage
b. Lien
c. Negative Lien
d. Charge creation

CIBM, Manipal-Multiple Choice Questions – 2020 265

Q21.Mortgage of property belongs to the minor in his individual capacity can be put
through only on obtaining permission from:
a. The competent court.
b. His lawful guardian.
c. The minor him/herself.
d. Can’t mortgage such property.

Q22.In case of Joint Stock Company as per Section 125 of Companies Act, Registration of
charge with ROC is to be done:
a. Within 60 days from the date of creation of charge.
b. Within 30 days from the date of creation of charge.
c. On the date creation of charge itself.
d. Within 30 days from the date of loan documents.

Q23.For MSME clients enjoying Working Capital Limits against BDs, which appendix is
modified after implementation of Trade Receivables Discounting System (TReDS)
Scheme.
a. Appendix 68 - Proforma of Book Debt statement of Manual of instructions on
Documentation
b. Appendix 66 - Proforma of notice to be sent by our borrower to his debtor in connection
with our advance against book-debts.
c. Appendix 67 - Letter of undertaking not to avail occ facility elsewhere.
d. Appendix 72 - Agreement for segregated liabilities.

Q24. “Checklist for scrutiny and approval of LSR by branches” (Appendix-18 of manual of
instructions on Documentation – volume-I) has been modified. Which of the following
certificate by Branch-In-Charge is added in appendix-18?
a. I have verified the documents submitted by the proposed mortgagor vis-à-vis the Legal
Scrutiny Report.
b. The Legal Scrutiny report discloses a clear marketable title on the property proposed to
be mortgaged as per verification done by me.
c. The LSR is in the prescribed format and the same is acceptable.
d. The Title Deeds/Property Documents submitted for scrutiny are received directly from
the Panel Advocate along with Legal Scrutiny Report.

Q25. In case of advances granted to partnership firm, NF760 is to be executed by:

a. All partners.
b. One of the partners duly authorized by other partners.
c. Either by all partners or by duly authorized partner.
d. Any of the locally available partner.

CIBM, Manipal-Multiple Choice Questions – 2020 266

Q26. For properties situated in other States other than the advancing branch LSR is to be
obtained from:
a. Advocate of that State where property is situated through CO concern.
b. Advocate of that State where advancing branch is situated through CO concern.
c. Directly from Panel Advocate of that State where property is situated.
d. Directly from Panel Advocate of that State where advancing branch is situated.

Q27. The Pre-Release Audit for all types of credit facilities sanctioned with credit limits of
Rs. 5 crore & above (Fund based/Non fund based/clean limits/retail lending schemes) to
new as well as existing borrowers, shall be conducted within:

a. 7 days from obtention of documentation.

b. 7 days from the date of sanction.
c. 48 hours from obtention of documentation.
d. 48 hours from the date of sanction.

Q28. The limitation period for Suit by mortgagee for fore-closure is

a. 3 years
b. 12 years
c. 15 years
d. 30 years

Q29. Term Loans (other than agriculture) AOD/AOS/LOR is to be obtained from the date of
agreement / earlier AOD/AOS
a. After completion of 36 month.
b. After completion of 24 months.
c. After completion of 12 months.
d. At the time of agreement itself.

Q30. When third party property is proposed to be taken as collateral security by way of
EMT for an advance:
a. Willingness to offer the property as security to the loan is to be obtained from
borrower.
b. Willingness to offer the property as security to the loan is to be obtained from co-
borrower.
c. Willingness to offer the property as security to the loan is to be obtained from both
borrower as well as co-borrower.
d. Willingness to offer the property as security to the loan is to be obtained from the title
holder of the property.

CIBM, Manipal-Multiple Choice Questions – 2020 267

Q31. Register maintained by the advancing branch for recording the title deeds is:
a. NB-110
b. NB-115
c. NB-132
d. NB-175

Q32. Letter Evidencing Deposit of Title Deed LEDTD is to be executed at the notified branch:
a. on the date of deposit of the title deed itself.
b. at least one day after the deposit of the title deeds.
c. at least one day before the deposit of the title deeds.
d. at least one day before or on the date of deposit of the title deeds.

Q33. Where some of the previous title deeds or other material documents (chain of
property papers) is/are missing/not available etc., it is advisable to go in for:
a. Declining the loan proposal.
b. Prior permission of Circle Head.
c. Memorandum of deposit of title deeds.
d. Declaration from borrower to that effect.

Q34. Registration of creation of security interest in CERSAI is exempted in case of:

a. Residential Property
b. Commercial Property
c. Residential/Commercial Property used for Agriculture purpose
d. Agricultural Property

Q35. Banks will not be able to initiate any step under Chapter III of SARFAESI Act like
issuance of demand notices, taking possession or arranging for sale of the secured assets
unless:
a. The borrower’s consent is there for the same.
b. The secured assets are registered with the Central Registry (CERSAI).
c. The permission from Legal Section of Circle is there.
d. The orders of competent court are there for same.

Q36. For Creation and modification of Charge with Registrar of Companies the required
form to be filled up is:
a.Form CHG-1 b.Form B
c.Form 8 d.Form 17

CIBM, Manipal-Multiple Choice Questions – 2020 268

Q37. In case of transferofloans/advancesfromonebranchtoanother branch,Modificationof
charge is not necessary under the circumstances when:
a. Second charge/mortgage is created on movables and immovables.
b. Obtention of documents for main limit and the sub-limit isdone ondifferent dates.
c. Entire credit limits along with the liability of the party are transferred.
d. Apportionment of limits (either at the time of sanction or subsequently) is done.

Q38. When the amount of advance is completely paid by the borrower company,
Satisfaction of charge within __ (Section 138) is to be done in __.
a. 30 days, Form No. 17
b. 1 month, Form No. 8
c. 30 days, Form CHG-4
d. 7 days, Form No. 8

Q39. In case of renewal of account without enhancement or with reduction in the existing
limits:
a. Modification of charge not required.
b. Modification of charge is to be done within 15 days.
c. Modification of charge is to be done on the date of renewal itself.
d. Modification of charge is to be done within 30 days.

Q40. Whenever limits secured by the mortgage of the landed property are renewed,without
any enhancement the letter of renewal which is to be obtainedis:
a. NF-803
b. NF-493
c. NF-718
d. NF-480

Q41. Under “PM Street Vendor’s AtmaNirbharNidhi (PM SVANidhi)” scheme for providing
credit for working capital to street vendors to resume their businesses Which of the
following document/s is/are not required
a. Letter of Recommendation (LoR)
b. Certificate of Vending (CoV)/ID Card
c. Aadhar Card
d. Ration Card

CIBM, Manipal-Multiple Choice Questions – 2020 269

Q42. Our “e-Syndicate Bank branches are advised to execute fresh documents as per the
format prevailing in Amalgamated Bank for KCC advances after completion of five years
along with the link letter for subsequent renewals the e-Syndicate Bank branches may
obtain which of the forms:
a. NF 493 & NF 975
b. NF 493 ONLY
c. NF 909
d. NF 909, NF 493, NF 975

Q43. Newly introduced Disbursement format to be taken for each disbursement for all loans
and advances is __?
a. NF 1009
b. NF 1023
c. NF 1024
d. NF 1025

Q44. Which form is to be used as application-cum-Letter of Pledge for Swarna Loan

/Overdraft against Gold Jewellery (Revised) for all three Swarna Schemes (Swarna loans,
Swarna Overdraft & Swarna Express
a. NF 1009
b. NF 1023
c. NF 1024
d. NF 1025

Q45. As per Cir. 555 dt 21.7.2020, the common Application cum Appraisal Form for KCC-
Crop loans with Gold as Collateral Security is _________?
a. NF 1026
b. NF 1023
c. NF 1024
d. NF 1025

Q46. Which of the following is correct for the recent modifications for documentation for
Agriculture Gold Loans as per Cir 559/2020?
a. Modification done in NF 497
b. No modification in existing NF 497
c. Link Letter to be taken with NF 497
d. Both A and C

CIBM, Manipal-Multiple Choice Questions – 2020 270

Q47. Under modified Guaranteed Emergency Credit Line (GECL) Loans, which of the
following documents and /or actions are to be taken for individuals other than PMMY:
a. Undertaking Letter to be obtained from borrowers
b. Management Certificate to be certified by Branch-in-charge
c. Specific Scheme Code should invariably be selected in BAM83 (Canara Bank)/BAX 78(e-
Syndicate)
d. All a, b and c

Q48. Which of the following statements are correct for GECL Loans?
a. No Corporate guarantee/personal guarantee/third party guarantee/extension of
previously furnished guarantee/Fresh guarantee to be obtained
b. If guarantee has been obtained in any form, is has to be cancelled to ensure continuity of
guarantee cover of ECLGS.
c. Existing Guarantee cover to be continued for fresh Loan granted under GECL
d. Both a and b

Q49. As per Covid-19 regulatory package, what is not correct among the following
statements:
a. Conduct of Prerelease Audit for any additional working capital limitsanctioned under
LWCA & Canara Credit Support (CCS) loans, relaxation of 30 days from disbursement
b. Stock & book debt inspection, submission of stock statement/ othermonitoring data
restored only after 31.8.2020
c. Physical inspection of stock along with QOS / HOS in physical form w.e.f.1.9.20
d. All a to c

Q50. Under COVID-19- REGULATORY PACKAGE, a notice is sent to Customer.What is not

correct related to it?
a. Notice is sent to customers who had opted for moratorium duly informing them about
the deferment of installment / interest.
b. A copy of such notice shall be kept with the loan papers.
c. Under Inspection of such loans, these notices will be verified by Inspectors.
d. Both a&b

CIBM, Manipal-Multiple Choice Questions – 2020 271

Q51. Identify the correct statement/s out of following about simple mortgage?
i) Without delivering the possession of mortgaged property, mortgagor binds himself of
personally to pay the mortgage money.
ii) Agrees expressly or impliedly that in the event of his failing to pay according to his
contract the mortgagee will have a right to cause the mortgaged property to be sold and
the proceeds of sale to be applied, so far as necessary in payment of the mortgage
money,
iii) it is mentioned under sec. 58 (b) TPA
iv) When the principal money secured is one hundred rupees or upwards, a mortgage other
than a mortgage by deposit of title deeds can be effected only by a registered instrument
signed by the mortgagor and attested by atleast 2 witnesses” – TPA 58(F)
a. i only
b. I and ii
c. ii, iii
d. I, ii, iii and iv

Q52. What is English Mortgage?

a. Where the mortgagor binds himself to repay the mortgage-money on a certain date
b. Mortgagor transfers the mortgaged property absolutely to the mortgagee, but subject to
a provision that he will re-transfer it to the mortgagor upon payment of the mortgage-
money as agreed.
c. Where the mortgagor delivers possession or expressly or by implication binds himself to
deliver possession of the mortgaged property to the mortgagee, and authorises him to
retain such possession until payment of the mortgage-money, and to receive the rents
and profits accruing from the property
d. a and b

Q53. What is correct for Mortgage by conditional sale?

a. Where, the mortgagor ostensibly sells the mortgaged property— on condition that on
default of payment of the mortgage-money on a certain date the sale shall become
absolute,
b. On condition that on such payment being made the sale shall become void, or on
condition that on such payment being made the buyer shall transfer the property to the
seller,
c. Provided that no such transaction shall be deemed to be a mortgage, unless the
condition is embodied in the document which effects or purports to effect the sale.
d. All a to c

CIBM, Manipal-Multiple Choice Questions – 2020 272

Q54. Which of the following is a deemed Officially Valid Document (OVD)?
a. Passport
b. PAN Card
c. Current Utility Bill
d. Aadhar Car

ANSWER KEY -
1 D 17 C 33 C 49 D
2 D 18 A 34 D 50 D
3 C 19 B 35 B 51 D
4 B 20 C 36 A 52 D
5 A 21 A 37 D 53 D
6 C 22 B 38 C 54 C
7 A 23 A 39 A
8 D 24 D 40 B
9 B 25 C 41 D
10 D 26 A 42 A
11 A 27 C 43 C
12 D 28 D 44 A
13 C 29 B 45 A
14 D 30 D 46 A
15 D 31 A 47 D
16 B 32 B 48 D

CIBM, Manipal-Multiple Choice Questions – 2020 273

 Nomination
1. How many times nomination can be made in a Savings deposit account?
A. Only one time
B. Any number of times
C. Maximum two times
D. None of the above is correct

2. Can nomination be made for an Illiterate?

A. Yes
B. NO
C. Can be made only in case of joint account holders
D. Can be made under attestation from two witness

3. What is the status of nominee after the death of the depositor:

A. He becomes the sole owner of the deposit
B. He acts as a trustee for the deposit amount on behalf of the legal heirs
C. Nominee after 3 years of death of the depositor can enjoy full freedom over the deposit
D. None of the above is correct

4. How many nominations can be there in safe custody service?

A. ONE
B. FOUR
C. TWO
D. NOT ACCEPTED

5. When does the right of nominee start in case of joint deposit accounts operated on
“Either or OR” basis?
A. Immediately on death of all depositors
B. Immediately on death of any of the depositors
C. Nominee cannot be made in such type of deposits
D. All of the above are incorrect.

6. Who is not eligible to Nominate?

A. Either or Survivor
B. Proprietor
C. Illiterate
D. Trustee

CIBM, Manipal-Multiple Choice Questions – 2020 274

7. In case of lockers/safe custody/deposited by the sole hirer/depositor, nomination can be
made in favour of one individual only
A. True
B. False

8. On death of the depositor, the nominee Only eligible to the following

A. To receive the principal money
B. Principal as well as accrued interest
C. Raise the loan on deposit
D. Before maturity closure of deposit

Answers:
1 2 3 4 5 6 7 8
b d b a a d a c

CIBM, Manipal-Multiple Choice Questions – 2020 275

 Death claim
1. Who is Delegated Authority to settle claim of Rs. 4,00,000/-
a) Manager/ Senior Manager
b) Manager/Senior Manager in absence of branch head in Scale IV / V headed branches.
c) Scale IV heading branch
d) Scale V heading branch

2. Who is Delegated Authority to settle claim for Locker?

a) Manager/ Senior Manager
b) Branch head in CM / AGM headed branches.
c) AGM heading RO
d) AGM heading CO/DGM - CO

3. In respect of gold jewellery, for the purpose of reckoning the claim amount, which value
is to be considered?
a) Market value as on date of claim
b) Appraised value as per Pledge letter
c) Market value as on date of pledge
d) Appraised value as on date of claim

4. Inheritance of the assets of the deceased depends on what?

a) Age
b) Relation
c) Religion
d) Gender

5. In case the deceased has lest a will and our accounts are not mentioned /specified under
will, in whos favour claim is to be settled?
a) Executor of Will
b) Executor will be asked to get court orders for said accounts
c) Legal heirs can claim as per succession law
d) Succession Certificate to be called for

6. If will is executed in Mumbai, it willcome in to operation only after confirm some

conditions. Which one is NOT Correct?
a) After the death of testator
b) If the same is the Last will and not been revoked.
c) If the same is got Probated in Mumbai Court.
d) If executor is appointed by testator while executing will.

CIBM, Manipal-Multiple Choice Questions – 2020 276

7. Which statement is wrong regarding Will?
a) It can be written with Pencil
b) Stamp duty is applicable
c) It can be Registered or un registered
d) It has to be witnessed by two individuals

8. In which type of account at the time of death of one account holder of two joint account
holder, account is to be settled under Death Claim.
a) E or S
b) No 1 or S
c) Jointly operated
d) Latter or S

9. In which type of account at the time of death of first holder of two joint account holders,
indemnity from survivor is required.
a) Where deceased is illiterate
b) Where deceased is Blind
c) Where deceased is physically handicapped
d) Where deceased is Minor.

10. For Safe Custody Articles,in the case of jointly deposited articles where application does
not provide for delivery of the article to the surviving depositor in case one of the joint
depositors dies, a claim has to be preferred by_____________
a) Survivor
b) Legal heirs of deceased
c) Survivor & Legal heirs of deceased
d) Legal heirs of both

11. Probating of the Will should NOT be insisted upon only in the case of Will made
by____________?
a) Muslim
b) Hindu
c) Sikh
d) Buddhist

CIBM, Manipal-Multiple Choice Questions – 2020 277

12. Probating of the Will should NOT be insisted upon in the case of Will is made in the
Presidency towns
a) Chennai
b) Delhi
c) Kolkatta
d) Mumbai

13. The age of majority shall be ________ years in all cases where guardian is appointed by
the Competent Court as per the Guardian and Wards Act.
a) 12 years
b) 18 years
c) 21 years
d) 23 years

14. Which type of Guardian is as per Court orders?

a) Natural Guardian
b) Testamentary Guardian
c) Guardian ad Litem
d) De-fecto Guardian

15. In which religion Mother of minor is not a natural guardian?

a) Hindu
b) Christian
c) Parsi
d) Muslim

16 Who will be guardian of an illegitimate Hindu/Christian/Parsi child?

a) Father of child.
b) Mother of child
c) Both father & mother
d) Court appointed guardian

17. Where legal heir of deceased depositor is NRI, he can do several things. Which one is
NOT correct?
a) NRI can execute claim form in the country NRI is residing before our bank branch officials
there.
b) NRI can execute Special Power of attorney in favor of Indian Resident
c) NRI can execute claim form in the country NRI is residing before Notary Public there.
d) NRI can execute claim form in the country NRI is residing before that country’s consulate
officethere.

CIBM, Manipal-Multiple Choice Questions – 2020 278

18. Where legal heir of deceased depositor is NRI and is sending claim forms from the
country he is living, said claim forms are to be duly attested. Who CANNOT attest the
same?
a) Notary Public after reaching in India.
b) Our bank branch officials there.
c) Notary Public in that country.
d) Indian Embassy/High Commission

19. WHERE A NRI CUSTOMER HAS PASSED AWAY ABROAD Death certificate accompanied
by any of the following document shall be obtained. Which one is NOT correct.
a) Evidence of settlement of any insurance claim at foreign centre.
b) Evidence of settlement of terminal benefits by employer at foreign centre.
c) Evidence of death as provided by a hospital or local police authorities at the foreign
centre
d) Declaration cum indemnity from legal heirs to that effect.

20. Under settlement of death claims which type of accounts CANNOT be settled?
a) Accounts in Minor name.
b) Contents of Lockers
c) Securities under Gold Loan
d) Accounts of HUF

21. For claims without nomination up to Rs. 10,000/- which claim form is to be obtained?
a) Appendix I of MoI
b) Appendix II of MoI
c) Appendix III of MoI
d) NF 1020

22. For claims without nomination above Rs. 10,000/- up to Rs. 50,000/- which claim form is
to be obtained?
a) Appendix I of MoI
b) Appendix II of MoI
c) Appendix III of MoI
d) NF 1020

23. For claims without nomination Above Rs. 50,000/- which claim form is to be obtained?
a) Appendix I of MoI
b) Appendix II of MoI
c) Appendix III of MoI
d) NF 1020

CIBM, Manipal-Multiple Choice Questions – 2020 279

24. Annexure B to NF 1020 – Affidavit is to be obtained where claim is raised by legal heirs
& claim amount is above Rs. _________.
a) 10,000/-
b) 50,000/-
c) 5,00,000/-
d) 10,00,000/-

25. What is NOT correct regarding Surity for settlement of death claims?
a) Surity is to be mandatorily obtained from minimum two individuals.
b) The Surety should be a person who is well known to the family of deceased but
unconnected with it
c) Any account holder of the bank known to the family of deceased but unconnected with it
d) Any Govt. official whose signature is verified by the bank. The same is to be sworn before
Judge/Magistrate/Notary public

26. What is NOT correct regarding Annexure C to NF 1020 – Letter of Indemnity.

a) The same is to be executed by sureties only & is to be duly witnessed/sureties by two
individuals
b) If the share of the minor heir is below Rs. 2000/-, no indemnity need be obtained.
c) If share of minor is transferred in the name of Minor by splitting deposit till date the
minor becomes major, the same can be waived.
d) No indemnity need to be obtained in case where the claimant is lunatic / insolvent

27. Annexure D to NF 1020 – Opinion report on surety is to be executed/prepared by

whom?
a) Claimants
b) Claimants along with Surities
c) Surity
d) Manager of Claim department.

28. Annexure H to NF 1020 – Receipt: - To be signed by all claimants jointly having received
the claim amount where amount is paid by way of_____
a) NEFT
b) Banker’s cheque
c) Credit to account
d) RTGS

CIBM, Manipal-Multiple Choice Questions – 2020 280

29. Following documents are to be stamped as per State Stamp Act for Claiming assets of
deceased. Which one doesn’t falls under State Stamp Act?
a) Annexure A – (Letter of Disclaimer of NF 1020)
b) Annexure – B (Declaration)
c) Annexure – H (Receipt)
d) Annexure – G (Letter of Indemnity of NF 1020)

30. Which of the following document require stamping?

a) Annexure B– Declaration
b) Annexure D– Opinion report on surety
c) Annexure E to NF 1020 – Form of Inventory of Contents of Safe Deposit Locker
d) Annexure F to NF 1020 – Form of Inventory of articles left in Safe custody

31. Where assets of deceased are claimed on the basis of Will, which of the following
document is not to be obtained.
a) Appendix-1
b) Death Certificate
c) Declaration as per Appendix B
d) True copy / certified copy of the Will

32. Where nomination is available in deposit but amount is claimed by Executor of will, in
such case amount is to be settled in favour of____.
a) Nominee
b) Executor
c) Any of two
d) None of them and in favour of legal heirs.

33. Where nomination is available in deposit but amount is claimed by Legal heirs, in such
case amount is to be settled in favour of____.
a) Nominee
b) Legal heirs
c) Legal heirs to be advised to obtain orders from court
d) Succession Certificate is to be called.

34. Where nomination is available in deposit but amount is claimed as per Succession
Certificate, in such case amount is to be settled in favour of____.
a) Nominee
b) Legal heirs
c) As per succession certificate
d) Court orders to be called for

CIBM, Manipal-Multiple Choice Questions – 2020 281

35. Where Nomination is not available & deceased is Hindu Female, who cannot claim the
amount at first instance?
a) Husband of deceased
b) Mother of deceased
c) Son/Daughter of deceased
d) Grand son/Grand daughter of deceased

36. Where deceased is Hindu Male, who is not Class 1 heir?

a) Son’s Daughter’s Son
b) Son’s Daughter’s Daughter
c) Daughter’s Son’s Daughter
d) Daughter’s Daughter’s Son

37. Where deceased is Female Parasi, who cannot claim the amount at first instance?
a) Husband of deceased
b) Mother of deceased
c) Daughter of deceased
d) Son of deceased

38. Where Nomination is not available & deceased is Christian, who cannot claim the
amount at first instance?
a) Husband of deceased
b) Mother of deceased
c) Son/Daughter of deceased
d) Grand son/Grand daughter of deceased

39. Where Nomination is not available & deceased is Muslim, who cannot claim the amount
at first instance?
a) Father of deceased
b) Mother of deceased
c) Spouse of deceased
d) Brother of deceased

40. Where operation condition is Either or Survivor, on the death of one depositor what is
to be done?
a) Name of deceased to be deleted after obtaining death certificate
b) Amount is to be settled in favour of Survivor & legal heirs of deceased
c) Amount is to be settled in favour of Survivor & nominee of deceased
d) Amount is to be settled in favour of Survivir after submitting claim forms

CIBM, Manipal-Multiple Choice Questions – 2020 282

41. What interest will be paid while settlement in following deposit?

Date of Term Date of Date of Date of Date of

Deposi of Maturi Maturi death claim
t De ty of ty of
pos Auto 3ndAut
it renew o
Dep renew
Dep
01.01.20 1 01.01.20 01.01.20 30.09.20 01.06.20
18 yea 20 22 19 21
rs

a) Contracted rate till 01.01.2019, SB interest thereafter.

b) Contracted rate till 01.01.2020, SB interest thereafter
c) Contracted rate till 01.01.2021, SB interest thereafter
d) Contracted rate till date of claim.

42. What interest will be paid while settlement in following deposit?

Date of Term ROI of Date of Date of

Deposit of Dep death claim
Dep osit
osit
01.01.2018 2 years 7.5% 30.09.2018 01.01.2020

a) 7.5%
b) SB Interest from date of death to settlement
c) 7.5% - 1%
d) SB interest from date of deposit

CIBM, Manipal-Multiple Choice Questions – 2020 283

43. What interest will be paid while settlement in following deposit?

Date of Term ROI of Date of Date of

Deposit of Dep death claim
Dep osit
osit
01.01.2018 3 years 7.5% 30.09.2018 01.01.2020

a) Contracted Rate i.e. 7.5%

b) Contracted Rate- penal cut i.e. 7.5% - 1%
c) Interest rate applicable for period run on the date of deposit.
d) Interest rate applicable for period run on the date of deposit- 1%.

44. What interest will be paid while settlement in following deposit?

Date of Term of ROI of Date of Date of Date of

Deposit Depo Depo Maturity death claim
sit sit of Auto
renew
Dep
01.01.2018 2 years 7% 01.01.2022 30.09.2018 01.06.2020

a) 7% till date of payment

b) 7% till date of maturity and SB interest thereafter.
c) 7% till maturity&Interest rate applicable to FDR for period run till date of settlement.
d) 7% till maturity &contracted rate as per auto renewed deposit till date of settlement.

45. What interest will be paid while settlement in following deposit?

Date of Term ROI of Date of Date of

Deposit of Dep death claim
Dep osit
osit
01.01.2018 2 years 7% 30.09.2018 01.10.2018

a) 7% till date of payment

b) 7%-1% till date of payment.
c) Interest rate applicable to FDR for period run on date of settlement.
d) Interest rate applicable to FDR for period run-1%on date of settlement.

CIBM, Manipal-Multiple Choice Questions – 2020 284

46. What interest will be paid while settlement in following deposit?

Date of Term ROI of Date of Date of Date of

Deposit of Dep Maturit death claim
Dep osit y of
osit Auto
renew
Dep
01.01.2017 2 years 7% 01.01.2021 30.03.2019 01.06.2021

a) 7% till date of payment

b) 7% till date of maturity and SB interest thereafter.
c) 7% till maturity & Interest rate applicable to FDR for period run till date of settlement.
d) 7% till maturity & contracted rate as per auto renewed deposit till date of settlement.

47. New package/utility for death claim settlement is introduced under which reform?
a) EASE 2.0 PSB
b) EASE 1.0 PSB
c) EASE 3.0 PSB
d) EASE 1.5 PSB

48. Death Claim has been categorized into how many parts in the portal?
a) 4
b) 3
c) 2
d) 1

49. On raising claim in Death Claim Portal, URN number will be generated in the format DP
CODE+CN+RUNNING SERIAL NUMBER. Running Serial Number contains how many digits?
a) 7
b) 6
c) 5
d) 4

CIBM, Manipal-Multiple Choice Questions – 2020 285

50. Where Claim is for assets of person who is Reported Missing can be settled within
branch power. Which one is NOT Correct?
a) Domestic Accounts only.
b) Deposits in Individual capacity only.
c) Up to limit of Rs. 50,000/- only.
d) Person missing in any country.

Answer keys
1 D 2 D 3 B 4 C 5 C
6 D 7 B 8 C 9 A 10 C
11 A 12 B 13 C 14 C 15 D
16 B 17 D 18 A 19 D 20 D
21 A 22 B 23 D 24 C 25 A
26 A 27 D 28 B 29 C 30 A
31 C 32 B 33 A 34 C 35 B
36 A 37 B 38 B 39 D 40 A
41 B 42 A 43 C 44 B 45 C
46 D 47 A 48 B 49 C 50 D

CIBM, Manipal-Multiple Choice Questions – 2020 286

 ASSOCIATE PARTY PRODUCTS
1. The Sale of Third party Products result in increased …………………….. to our Bank.
A. Interest Income
B. Service Charges
C. Both of the Above
D. None of the above

2. BHIMA CLUB Business Drive for H2 of FY 2020-21 is by?

A. Canara HSBC OBC Life Insurance
B. Canara Robeco Mutual Fund
C. Apollo Munich Health Insurance
D. General Insurance

3. The life Insurance Policy partner of our bank is

A. Canara Robeco
B. Canara HSBC OBC Life Insurance Company Limited
C. M/S ORIENTAL INSURANCE COMPANY LIMITED
D. M/S BAJAJ ALLIANZ LIFE INSURANCE CO LTD.

4. What is benefit derived from a Life Insurance Product?

A. Financial cover against diseases and other accepted health issues during life time of the
insured (self and/or family) subject to renewal.
B. Financial Cover to the family members against natural and accidental death of the
insured
C. Alternative, planned and a nontraditional way of wealth creation
D. None of the above.

5. Which of the below mentioned products is not offered under the brand name of choice?
A. Guaranteed Income Plan
B. Pension4life Plan
C. Health First Plan
D. Jeevan Nivesh Plan
E. Cancare policy

CIBM, Manipal-Multiple Choice Questions – 2020 287

6. The legal liability cover for damages such as accidental death, bodily injury or damage
to property, experienced by a third party and also protection against any legal costs
incurred in such events, with prior consent is called
A. Banker’s Indemnity Policy
B. Transit Marine Insurance Policy
C. Public Liability Policy
D. Burglary Insurance Policy

7. The policy that covers Death due to accident, loss of Baggage and Purchase Protection to
Platinum, Business, Select variant Debit Card Holders and all credit card holders.
A. Banker’s Indemnity Policy
B. CANCARE Policy
C. Public Liability Policy
D. RUPAY Card Policy

8. The Corona Kavach Policy is a Cover for hospitalisation and home care treatment for
CORONA through our Bank branches under the aegis of:
A. TATA AIG INSURANCE
B. Canara HSBC OBC Life Insurance Company Limited
C. The NEW INDIA ASSURANCE CO LTD
D. BAJAJ ALLIANZ GIC

9. EXTRA CARE PLUS is a policy scheme provided under the tie up arrangement with:
A. TATA AIG INSURANCE
B. Canara HSBC OBC Life Insurance Company Limited
C. The NEW INDIA ASSURANCE CO LTD
D. BAJAJ ALLIANZ GIC

10. The maximum amount of loss covered for self under card variants of Gold/Platinum
amount to:
A. Rs. 5.00 lakhs
B. Rs. 8.00 lakhs
C. Rs. 4.00 lakhs
D. Rs. 6.00 lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 288

11. The Product under the name of EXTRA CARE PLUS comes under which variant of Policy
portfolio:
A. Life Insurance
B. Health Insurance
C. Mutual Fund
D. General Insurance

12. The Burglary and Fire Insurance comes under which variant of Insurance Policy?
A. General Insurance
B. Life Insurance
C. Property Insurance
D. Building Insurance

13. The EXTRA CARE PLUS is a health Insurance Policy catering to the age group of
A. 91 DAYS- 80 YEARS
B. 182 DAYS- 60 YEARS
C. 18 YEARS- 60 YEARS
D. 5 YEARS- 65 YEARS

14. The asset that can be covered under General Insurance must be
A. a physical asset of some economic value
B. Non Physical asset of economic value
C. Must be an asset but not necessarily important to have an economic value.
D. Both A and B are correct
E. Only A is correct

15. Insurance premium for getting a life insurance cover under our Corporate Agency tie up
can be paid through
A. Self Cheque
B. Demand Draft
C. Direct debit of account through CBS option
D. All of the above

16. The insurance cover creates a pool of funds to compensate against losses caused due to
A. Peril
B. Depreciation
C. Amortization
D. All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 289

17. CANARA ROBECO MUTUAL FUND is regulated by
A. SEBI
B. RBI
C. IRDAI
D. ALL OF THE ABOVE

18. In case an insurance product is obtained as collateral or primary security, what value of
the product you consider as the security amount?
A. Paid Value
B. Annuity value
C. Surrender Value
D. Maturity Value

19. The one word term used for the process of seeking reimbursement from a third or
responsible party for a claim that they have already paid to the claimant.
A. Subrogation
B. Indemnity
C. Insurance
D. Claim Reimbursement

20. The benefits of the Life Insurance Policy are

A. Tax free when it is paid to beneficiary after the death of Policy Holder
B. Tax get levied on the benefits to the beneficiary, provided the premium had been to the
Insurance Company for the purpose of monetary gain.
C. Both A and B are correct
D. Both A and B are incorrect

CIBM, Manipal-Multiple Choice Questions – 2020 290

 ANSWER KEYS –

1 B 9 D 17 A

2 A 10 B 18 C

3 B 11 B 19 A

4 B 12 A 20 C

5 E 13 A

6 C 14 D

7 B 15 D

8 C 16 A

CIBM, Manipal-Multiple Choice Questions – 2020 291

 COMPUTER AWARENESS

1.Physical parts of a Computer are known as

a.Malware
b.Software
c.Hardware
d.Operating Systems
e.Acccessories

2.The device that uses pressure sensitive electronics and separate sensors to monitor the
horizontal and vertical movements is
a.Mouse
b.Joystick
c.Compiler
d.Line printer
e.All the above

3.The Term VSAT stands for

a.Variable Small ApertuteTermional
b.Very Small Aperture Terminal
c.Very Small Available Terminal
d.Veriety of Small Aperture Termonal
e.None of the above

4.Which of the following cannot counted as part of the hardware of a computer

a.Hard Disk
b.Mother board
c.Firewall
d.Key Board
e.processor

5.The software that consists of all the programs, documents inbuilt in the computer is called
a.System Software
b.Application Software
c.In built Software
d.Default Software
e.Utility Software

CIBM, Manipal-Multiple Choice Questions – 2020 292

6.For preparation of a text document, which type of software is to be used
a.Multimedia
b.Data processor
c.UI
d. Word Processor
e.Any of these

7.One of the Primary storage devices used in a computer

a.Hard Disk
b.Floppy Disk
c.Random Access Memory
d.Pen Drive
e.None of the above

8.The resolution of a computer/Mobile screen is expressed in which of the following

terminologies
a.Color
b.Processor Speed
c.Memory Capacity
d.Pixels
e.b&d

9.The device that converts an image into electronic form by shining light and sensing the
intensity of the reflection at every point.
a.Bar Code
b.Scanner
c.QR Code
d.Touch Screen
e.Compiler

10.The full form of “ www “

a.World Wide Web
b.World of Wise Women
c.Wide World Web
d.Web of World Wide
e.WorldWise Web

CIBM, Manipal-Multiple Choice Questions – 2020 293

11.What is a WAN
a.World Access Network
b.World Area Network
c.Wide Area Network
d.Wide Access Net
e.With Access Network

12.ROM stands for

a.Read On Memory
b.Real On Memory
c.Real Off Memory
d.Read Online memory
e.Read Only Memory

13.A computer based network that connects computers over a local area is called
a.Loacl Area Connection
b.Local Area Network
c.Micro Area Network
d.Nest
e.Metro Area Network

14.The term “Booting” is used in connection with which of the following

a.Activation of a computer
b.Activation of a Debit Card
c.Activation of an Account
d.Opening of a Dmat Account
e.Activation of Internet

15.Which of the following determine/s the speed response of a computer system

a.Memory
b.Pixels of Monitor
c.Software installed
d.Capacity of the processor
e.All the above

CIBM, Manipal-Multiple Choice Questions – 2020 294

16.A system that is used to restrict the outside intrusion to access a computer system is
called
a.Malwire
b.Decription
c.Firewall
d.Encryption
e.None of the above

17.Pick the correct order as the memory capacity progresses

a.Kilobyte, Gigabyte,Megabyte& Terabyte
b. Kilobyte,Megabyte,Gigabyte& Terabyte
c.Kilobyte,Megabyte, Terabyte & Gigabyte
d.Kilobyte, Terabyte ,Gigabyte& Megabyte

18.Which of the following is not a storage devices.

a.Tape Drive
b.Floppy Discs
c.Hard Discs
d.Printer Driver
e.Pen Drive

19.Which is the Intranet of Canara Bank

a.www.canarabank.com
b.www.canarabank.in
c.Cannet
d.Both a & b
e.All the above

20.Encoding the contents of a message/mail in such a way that it hides the contents from
outsiders is called
a.Encryption
b.Decryption
c. Cyber Squatting
d.Nano technology
e.Artificial Intelligence

CIBM, Manipal-Multiple Choice Questions – 2020 295

21.Banking records in an electronic form shall be treated as valid records under the
provisions of ---Act
a.NI Act
b.Information Technology Act 2000
c.BR Act
d.IT Act 1961
e.None of the above

22.Two broad categories of Software are

a.Word processing & Spread Sheets
b.Transaction& Application
c.Windows& Mac OS
d.System& Application
e.None of these

23.Within the meaning of computer crime, a set of instructions that is designed to modify,
destroy, record and transmit data or programs available in a computer is called
a.Hacking
b.Virus
c.Containment
d.Intruding
d.Any of the above

24.Servers are computers that provide resources to other computers connected to a –

a.Network
b.Mainframe
c.Super Computer
d.Client
e.Port.

25.Switch is a network device whose responsibility is to -----

a.Protect from Virus
b.Turn off the power to network
c.Connect network devices
d.Boot the network
e.None of these

CIBM, Manipal-Multiple Choice Questions – 2020 296

 ANSWER KEYS

1 c 10 a 19 c
2 b 11 c 20 a
3 b 12 e 21 b
4 c 13 b 22 d
5 a 14 a 23 b
6 d 15 e 24 a
7 c 16 c 25 c
8 d 17 b
9 b 18 d

CIBM, Manipal-Multiple Choice Questions – 2020 297

 Circular based MCQ (01/2020 to 50/2020)

Q-1-Suit filed accounts are to be transferred to ARM Branch where book liability is
A-Rs 10lacks and above
B-Above 20lacks
C-20lacks and above
D-Above 10lacks

Q-2- Accounts are exempted from transferring to ARM Branches

A-Accounts in which Fraud is already reported.
B-Accounts settled under OTS and due date of payment are not over or OTS amount fully
recovered.
C-Accounts having NFB Liabilities, yet to be crystalized.
D-All the above

Q-3-Minimum exposure ceiling for obtention of ECAI rating

A- above 5 Crore
B- above 10 Crore
C- above 100 Crore
D- above 20 Crore

Q-4-Powers to permit exemption from rating by ECAI in respect of accounts falling upto
circle powers
A- ED-CAC
B- CAC of the Board
C-CO Head –CAC
D-No Power

Q-5- The maximum loan quantum for ‘ TL CUSTOM HIRING CENTERS’

A-10lacks
B-20lacks
C-50lacks
D-100lacks

Q-6-The Product Code for ‘ TL CUSTOM HIRING CENTERS’

A-901
B-902
C-904
D-905

CIBM, Manipal-Multiple Choice Questions – 2020 298

Q-7- The minimum Loan amount for ‘ TL CUSTOM HIRING CENTERS’
A- Rs 10,000
B-Rs 50,000
C-Rs 100,000
D-Rs 200,000

Q-8-Repayment period for scheme ‘Custom Hiring Centers’

A-5 -9 Years
B-7-12 Years
C-1-5 Years
D-10-15 Years

Q-9- Margin required for scheme ‘Custom Hiring Centers’

A-10%-15%
B-5%-10%
C-15%-25%
D-5%-15%

Q-10-Sanctioning Authority for scheme ‘Custom Hiring Centers’

A-As per normal delegated powers
B-RO Head-CAC and above up to their delegated powers.
C-CO Head-CAC and above up to their delegated powers.
D-Branch Power irrespective of loan amount

Q-11-Which statement is correct in respect of scheme Canara LRD (Lease Rent Discounting)
A- All corporate/non corporate clients eligible irrespective of Risk rating internally.
B-Individual borrowers shall have risk grade of atleast CS-3 as per the latest CIRs are eligible
C-The Scheme is applicable for CS-1 grade individual borrowers only.
D-Loans can be permitted to meet any requirement of the borrower/s including for
speculative purposes.

Q-12- The minimum Loan amount for ‘Canara LRD (Lease Rent Discounting)’
A-Above 1 Crore
B-Above 2 Crore
C-Above 5 Crore
D-Above 10lacks

Q-13-Nature of Loan facility under ‘Canara LRD (Lease Rent Discounting)’

A-Working Capital only
B-Term loan only
C-Both Working Capital & Term Loan
D-Any of Working Capital or Term Loan

CIBM, Manipal-Multiple Choice Questions – 2020 299

Q-14-For arriving at the eligible quantum under ‘Canara LRD (Lease Rent Discounting)’
A- Unexpired lease period (certain ) or 15 years whichever is lower.
B-Unexpired lease period (both certain and option) or 15 years whichever is lower.
C- Unexpired lease period (both certain and option) or 10 years whichever is lower.
D- Total lease period (both certain and option) or 15 years whichever is lower

Q-15-The maximum repayment period for ‘Canara LRD (Lease Rent Discounting)’
A-Upto 180 months or unexpired lease period (including repayment holiday, certain and
option period) whichever is lower in EMI.
B- Upto 120 months or unexpired lease period (including repayment holiday, certain and
option period) whichever is lower in monthly installments.Interest to be recovered as
and when due.
C-Upto 180 months or unexpired lease period (including repayment holiday, certain and
option period) whichever is lower in monthly installments.Interest to be recovered as
and when due.
C-Upto 120 months or unexpired lease period (including repayment holiday, certain and
option period) whichever is lower in EMI.

Q-16-Guarantees to be issued in favour of Central Government should be addressed to the

President of India. Any correspondence with regard to issuance of guaranteeshould be
addressed to-
A-The President of India.
B-The concerned officer who accepted the guarantee.
C-The Governor of The state.
D- The District Magistrate.

Q-17-Credit scoring matrix framework under EASE Reforms for Corporate loans is applicable
for
A-Rs.50 crore and above (FB + NFB)
B- Rs.50 crore and above (FB)
C- Rs.10 crore and above (FB + NFB)
D- Rs.10 crore and above (FB)

Q-18-Credit scoring matrix framework under EASE Reforms for MSME loans is applicable for
A-Rs.50 crore and above (FB + NFB)
B- Rs.50 crore and above (FB)
C- Rs.10 crore and above (FB + NFB)
D- Rs.10 crore and above (FB)

CIBM, Manipal-Multiple Choice Questions – 2020 300

Q-19-Which statement is correct in respect of ‘QUARTERS FURNITURE SCHEME’
A-The monetary ceiling/limit fixed for purchase of furniture / fixtures by the eligible
Officers/ executives shall be inclusive of GST.
B-The monetary ceiling/limit fixed for purchase of furniture/fixtures by the
eligible officers/executives shall be exclusive of GST.
C- The bills / invoice are to be submitted within 90 days from the date of each purchase.
D-Repairs for the furniture /fixtures, minor or major, will beundertaken by the Bank.

Q-20- Maintenance expenses under QUARTERS FURNITURE SCHEME can be accumulated

for a maximum period of
A-2 Years.
B-3 Years
C-5 Years
D-No accumulation permitted.

Q-21-Re-KYC updation should be done for High Risk rated customers

A- Once in every five years
B- Once in every year
C- Once in every two years
D- Once in every three years

Q-22- Re-KYC updation should be done for Low Risk rated customers
A- Once in every ten years
B- Once in every five year
C- Once in every two years
D- once in every three years

Q-23-Re-KYC updation should be done for Medium Risk rated customers

A- Once in every five years
B- Once in every eight year
C- Once in every two years
D- once in every three years

Q-24-Which of following failed transactions can be lodged in CCR

A-Our customers transacting with debit Cards and transaction has failed, but customer
account is debited Other Bank ATMs (Remote ON Us Transactions) and Our ATMs (ON
US) Transactions.
B- Our customers transacting with debit Cards and transaction has failed, but customer
account is debited POS/Ecommerce Transactions.
C-Our customers transacting with debit Cards and transaction has failed, but customer
account is debited Fund Transfer Transactions through ATM.
D-All the above

CIBM, Manipal-Multiple Choice Questions – 2020 301

Q-25-For MSME accounts , in case of non-centralised circles (for RAM Rating), the Risk
Management Wing HO will initiate/approve/ confirm the CBPR score
A- With exposure more than 10 crore
B- With exposure more than 15 crore
C- With exposure more than 50 crore
D- With exposure more than 25 crore

Q-26- If the degree of risk associated with the proposal is assessed as ‘Low’ the CBPR
scoring risk grades will be
A-CBPR -5
B-CBPR -3
C-CBPR -2
D-CBPR -1

Q-27- If the degree of risk associated with the proposal is assessed as ‘Normal’ the CBPR
scoring risk grades will be
A-CBPR -5
B-CBPR -3
C-CBPR -2
D-CBPR -1

Q-28- If the degree of risk associated with the proposal is assessed as ‘Medium’ the CBPR
scoring risk grades will be
A-CBPR -5
B-CBPR -3
C-CBPR -2
D-CBPR -1

Q-29- If the degree of risk associated with the proposal is assessed as ‘High’ the CBPR
scoring risk grades will be
A-CBPR -4
B-CBPR -3
C-CBPR -2
D-CBPR -1

Q-30- If the degree of risk associated with the proposal is assessed as ‘Very High’ the CBPR
scoring risk grades will be
A-CBPR -5
B-CBPR -3
C-CBPR -2
D-CBPR -1

CIBM, Manipal-Multiple Choice Questions – 2020 302

Q-31-The scoring matrix (CBPR) is divided into how many separate scorecards based on the
loan category of borrowers
A-5 categories
B-7 categories
C-10 categories
D-8 categories

Q-32-What is the monetary ceiling forreimbursement of CALL CHARGES applicable to all

eligible officials, irrespective of the Scale under Mobile Phone facility
A- Fixed at Rs.399/- (excluding GST)
B- A- Fixed at Rs.399/- (including GST)
C- A- Fixed at Rs.500/- (excluding GST)
D- A- Fixed at Rs.500/- (including GST)

Q-33- What is the monetary ceiling towards cost of mobile hand set to Section heads
(HO/CO/RO) is
A-Rs 10000/-
B-Rs 5000/-
C-Rs 8000/-
D-Rs 12000/-

Q-34-Which statement in respect of Empanelment of Panel of Agriculture Consultants

(PACs) is correct
A-Empanelment of Panel of Agriculture Consultants (PACs) for sourcing High Value
Agriculture Term Loan Projects for the Bank.
B- Empanelment of Panel of Agriculture Consultants (PACs) forexpanding the clientele base
of high-value proposals and to supplement the efforts of our in-house marketing
channels.
C-Agriculture Consultants are Individuals/sole proprietorship/Partnership firms/Companies
with in-depth knowledge of Agricultural project planning and implementation.
D-All the above

Q-35-Which statement is correct in respect of Chapter IV –A of the SARFAESI Act, 2002.

A-Attachment orders issued by Revenue Authorities for recovery of Govt. dues are required
to be filed with CERSAI.
B-Attachment orders issued in favour of any person, by Courts/Tribunals are required to be
filed with CERSAI.
C-Secured Creditors [as defined under section 2(1)(zd)] shall be entitled to enforce
securities under SARFAESI Act only if the security interest is filed with CERSAI.
D-All the above

CIBM, Manipal-Multiple Choice Questions – 2020 303

Q-36-Which statement is correct in respect of Chapter IV –A of the SARFAESI Act, 2002.
A-Creditors other than Secured Creditors (as defined under section 2(1)zd of SARFAESI Act),
in whose favour security interest is created have to file the same with CERSAI.
B-Filing of security interest with CERSAI shall be deemed to constitute a Public notice from
the date & time of filing with CERSAI.
C-Filing of Security interest or attachment orders with CERSAI shall have priority over any
subsequent security interest created upon such property.
D-All the above

Q-37 -Please select the correct term deposit product where auto Renewal facility is not
available.
A-Canara Tax Saver Deposits
B-Capital Gains Accounts
C-Non-callable deposits
D-All of the above

Q-38- BO Report for List of Staff Accounts where cumulative credit transactions exceeding
Rs 1.00 Lakh to Rs.2.00 Lakhs for previous month is
A-241219A
B-241219
C-249219
D-241419

Q-39-BO Report forList of Staff Accounts where cumulative credit transactions exceeding Rs
2.00 Lakhs for previous month.
A-241219A
B-241219
C-249219A
D-241419A

Q-40-Confirmation of having reviewed list of Staff Accounts is to be submitted on

A- Weekly basis
B- Fortnightly basis
C- Monthly basis
D-Quarterly basis

CIBM, Manipal-Multiple Choice Questions – 2020 304

 ANSWER KEYS – CIR 01/2020 to CIR 50/2020

1 2 3 4 5 6 7 8 9 10
C D B A C A D A C B
11 12 13 14 15 16 17 18 19 20
B C B B C B A C B B
21 22 23 24 25 26 27 28 29 30
C A B D B D C B A A
31 32 33 34 35 36 37 38 39 40
B A C D D D D B A C

CIBM, Manipal-Multiple Choice Questions – 2020 305

 Circular based MCQ (51/2020 to 100/2020)
Q1)As per the directions of top management, every year one month in each ____ is to be
celebrated as “SHG Credit linkage month” by identifying and financing targeted number
of SHGs. (Cir. 51/2020)
(a) Financial Year
(b) Half Year
(c) Quarter
(d) Three Quarters

Q2) Complete disbursement process on weekly basis for the entire SHG loans sourced
during the SHG Linkage campaign period from 01.02.2020 to 07.03.2020 and organize a
Mega Disbursement Day on 07.03.2020 in connection with ____ (Cir. 51/2020)
(a) “International Women’s Day”.
(b) “International SHG Day”.
(c) “International Credit Linkage Day”.
(d) “International Banks Day”.

Q3) The next “SHG Credit linkage month”will be in ____(Cir. 51/2020)

(a) October 2020
(b) November 2020
(c) December 2020
(d) January 2021

Q4) In case of Settlement of Claims of Deceased Depositors and Return of Articles in Safe
Deposit Lockers/ Safe Custody the existing cut off limit for Simple Claim Settlement has been
raised to ____ (Cir. 52/2020)
(a) Rs15000/-
(a) Rs25000/-
(b) Rs35000/-
(c) Rs50000/-

Q5) A new standardized form has been introduced namely ____for Death Claim Settlement
other than nomination related claims above Rs. 50000.00 in our Bank.(Cir. 52/2020)
(a) NF-1015
(b) NF-1020
(c) NF-1050
(d) NF-1035

CIBM, Manipal-Multiple Choice Questions – 2020 306

Q6) As per Section 269SU inserted in Income-tax Act 1961, vide the Finance (No.2) Act 2019,
every person having a total sales, turnover or grossreceipts, as the case may be, in
business exceeds ____during theimmediately preceding previous year, shall provide
facilities in addition to thefacilities for other electronic mode of payment, for accepting
payments throughfollowing prescribed electronic modes w.e.f. 01-01-2020:Debit Card
powered by RuPay; Unified Payments Interface (UPI) (BHIM-UPI);Unified Payments
Interface Quick Response Code (UPI QR Code) (BHIM-UPI QRCode)(Cir. 54/2020)
(a) Rs15 Crore
(b) Rs25 Crore
(c) Rs30 Crore
(d) Rs50 Crore

Q7) Reserve Bank of India has fixed the Sovereign Gold Bond Scheme 2019-20 Series IX –
Issue Price at ________ per gram ofSovereign Gold Bond. (Cir. 56/2020)
(e)Rs4070/-
(a) Rs4150/-
(b) Rs4450/-
(c) Rs5000/-

Q8) Interest Subvention Scheme for Incremental credit to MSMEscalculated at 2% per

annum for coverage to the extent of Rs 100 lakhs has been modifiedmaking Trading
activities without UdyogAadhar number (UAN)also eligible for claim. The alternate
methods/documents to be submitted in lieu of UdyogAadhar number (UAN) are(Cir.
57/2020)
(a) Requirement of UdyogAadhar number dispensed for unitseligible for GST
(b) Unit not required to obtain GST, may either submit Income Tax (PAN)
(c) Unit not required to obtain GST their loan account must be categorized asMSME by the
concerned Bank
(d) All of the Above

Q9) Interest rate on BILLS UNDER LCs (BULC) is now linked to _____?(Cir. 58/2020)
(a) MCLR
(b) Base Rate
(c) Prime Lending Rate (PLR)
(d) Repo Linked Lending Rate (RLLR)

CIBM, Manipal-Multiple Choice Questions – 2020 307

Q10) Merger of MTR(Mid Term Review) with CMF(Credit Monitoring Format) is effective
w.e.f_____?(Cir. 59/2020)
(a) 01.04.2020
(b) 18.04.2020
(c) 24.07.2020
(d) 15.04.2020

Q11) Threshold limit has been enhanced from _____ to Rs. _____ (FB+NFB exposure) in
case of Low, Normal and Moderate Risk rated accounts for CMF (Credit Monitoring
Format) (Cir. 59/2020)
(a) Rs1 Crores,Rs 02 Crores
(b) Rs1 Crores,Rs 03 Crores
(c) Rs1 Crores,Rs 05 Crores
(d) Rs1 Crores ,Rs10 Crores

Q12) Threshold limit(FB+NFB exposure) in case ofHigh Risk rated Accounts is _____for CMF
(Credit Monitoring Format)(Cir. 59/2020)
(a)Rs1 Crores
(b) Rs2Crores
(c) Rs3Crores
(d) Rs5 Crores

Q13) The periodicity for submission of CMF (Credit Monitoring Format) is ______ in case of
Low/Normal/Moderate Risk Rated accounts (Cir. 59/2020).
(a) Monthly
(b) Quarterly
(c) Half Yearly
(d) Annual

Q14) Progress report of Issuance & Activation of RuPay cards can be viewed by extracting
BO reports 170177, 170222 (RuPay Issuance & Activation) (Cir. 63/2020).
(a) 170188, 170222
(b) 170123, 170224
(c) 170177, 170222
(d) 170222, 170177

CIBM, Manipal-Multiple Choice Questions – 2020 308

Q15) Progress report of Overdraft facility to PMJDY accounts can be viewed by extracting
BO reports ________(Cir. 63/2020).
(a) 170198
(b) 170222
(c) 170250
(d) 170169

Q16) The product code for New Scheme on Housing Loan to Corporates introduced vide
Circular No. 64/2020 is (Cir. 64/2020)
(a) 612
(b) 624
(c) 628
(d) 632

Q17) The minimum and maximum quantum of loan sanctioned under New Scheme on
Housing Loan to Corporates introduced vide Circular No. 64/2020 is (Cir. 64/2020)
(a) Rs 50Lakh, Rs 100 Lakh
(b) Rs 50Lakh, Rs 150 Lakh
(c) Rs50Lakh, Rs 200 Lakh
(d) Rs 50 Lakh, No Upper Ceiling

Q18)Only External Risk Rating (ECR) rated __ and above corporates with minimum of ___
years satisfactory dealings with us are eligible under the New Scheme on Housing Loan to
Corporates introduced vide Circular No. 64/2020(Cir. 64/2020)
(a) ‘A’,3
(b) ‘B’,3
(c) ‘B’,5
(d) ‘A’,5

Q19) The status of release of documents post loan closure can be tracked using the search
option in _____ package which can be accessed in SAS under Advances (Cir. 65/2020)
(a) Closed Mortgage Advances Tracking Systems (CMATS)
(b) Closed Mortgage LoanTracking Systems (CMTS)
(c) Closed Loan Tracking Systems (CLTS)
(d) Canara Mortgage Loans Tracking Systems (CMLTS)

CIBM, Manipal-Multiple Choice Questions – 2020 309

Q20) The following retail lending schemes have been discontinued vide Cir 66/2020(Cir.
66/2020)
(a) Home Improvement Loan
(b) Canara Pension
(c) Canara Consumer Loan
(d) Canara Home Loan Plus

Q21) Minimum and Maximum loan quantum for providing In-Principle approvalsfor loans
routed through PSB Loans in 59 minutes platform are revised as (Cir. 67/2020)
(a)Rs 2Lakh, Rs 100 Lakh
(b) Rs 2Lakh, Rs 500 Lakh
(c) Rs 5Lakh, Rs 100 Lakh
(d) Rs 5Lakh, Rs 500 Lakh

Q22) Convenience fee payable per proposal to the platform provider for applications routed
through Market Place URL pertaining to PSB Loans in 59 minutes platform is_____?(Cir.
67/2020)
(a) Nil
(b) Rs1000/-
(c) Rs2000/-
(d) Rs5000/-

Q23) Convenience fee payable per proposal to the platform provider for applications routed
through Bank Specific URL pertaining to PSB Loans in 59 minutes platform is_____? (Cir.
67/2020)
(a)Nil
(b) Rs1000/-
(c) Rs2000/-
(d) Rs5000/-

Q24) The PM-KISAN beneficiaries whose credit limit is within is_____(shall be straight away
issued a KCC with approved sanction limit on providing the desired information in the
application form without any legal formalities for mortgage. (Cir. 69/2020)
(a) Rs100000/-
(b) Rs150000/-
(c) Rs160000/-
(d) Rs175000/-

CIBM, Manipal-Multiple Choice Questions – 2020 310

Q25)CGTMSE-Delayed payment of ASF/AGF for the year 2020-21attracts penalty and
additional premium of _____ ?(Cir. 71/2020)
(a) 10%
(b) 12.5%
(c) 15%
(d) 20%

Q26) CGTMSE-Payment of ASF/AGF for the year should be done only through _____?(Cir.
71/2020)
(a)IMPS
(b) NEF/RTGS
(c) BC
(d) DD

Q26) Rate of Interest for Gold Loan Up to Rs. 3.00lacks for Crop Cultivation has been revised
to ______? (Cir. 72/2020)
(a) MCLR + 0.30%
(b) MCLR + 0.50%
(c) MCLR + 0.75%
(d) MCLR + 1.00%

Q27) Rate of Interest for Gold Loanabove Rs. 3.00lacks Up to Rs. 5.00lacks for Crop
Cultivation has been revised to ______? (Cir. 72/2020)
(a)MCLR + 0.30%
(b) MCLR + 0.50%
(c) MCLR + 0.75%
(d) MCLR + 1.00%

Q28) Geo Tagging of Branches, Administrative Units (Regional Office, Circle Office) & ATM’s
(On-Site & Off-Site) through an android mobile app tool is to becompleted before ____?
(Cir. 78/2020)
(a) 29.02.2020
(b) 31.03.2020
(c) 01.04.2020
(d) 31.01.2020

CIBM, Manipal-Multiple Choice Questions – 2020 311

Q29) As Re-KYC is to be carried out by the branches on an ONGOING BASIS, a newBusiness
Object report No ______is enabled in Business Objects site to facilitate the branchesto
download the list of customers which are falling due for Re-KYC ?
(a) Business Object report No 170325
(b) Business Object report No 170324
(c) Business Object report No 170323
(d) Business Object report No 170322

Q30) A newcall centre named as “CALL CANARA” of our ban has been launched on 19th
November 2018.Which of the following modes is not a service mode that Call Canara
provides services through_____?(Cir. 81/2020)
(a)IVRS (Interactive Voice Response System),
(b) By agents responding to calls pertaining to query/request on our Toll free / other
telephone numbersusing Customer Relationship Management (CRM) application
(c) Web Chat – Online chatting with Call Canara agents.
(d) Responses to queries/requests raised on Social Media(Facebook,Twitter etc.)

Q31) Bank has created various Toll Free numbers to enable better response of
query/request among various categories of customers and prospects enlisted , One of
which is not valid which is _______ ?(Cir. 81/2020)
(a) Specifically for HNIs
(b) Specially for PMJDY customers
(c) Specially for prospective Loan Customers
(d) Specially for NRI customers(Chargeable Basis)

Q32) The minimum Asset Coverage Ratio (ACR) for financing NBFC-MFI is stipulated
as_______? (Cir. 84/2020)
(a) 1.00
(b) 1.10
(c) 1.25
(d) 1.50

Q33) The minimum Asset Coverage Ratio (ACR) for financing NBFC (other than NBFC-MFI) is
stipulated as_______? (Cir. 84/2020)
(a)1.00
(b) 1.10
(c) 1.25
(d) 1.50

CIBM, Manipal-Multiple Choice Questions – 2020 312

Q34)For selection of Risk Rating model, the aggregate exposure (present + proposed) shall
be reckoned except for _______ ?(Cir. 86/2020)
(a) Portfolio model
(b) Small Value Model
(c) Manual Model
(d) Ram Model

Q35) For all Accounts where exposure is above Rs. 2.00 Crore and Upto Rs. 35.00 Crore
Internal Risk Rating in RAM model shall be initiated by_____?(Cir.86/2020)
(a) Branch Manager
(b) CRRD, RM Wing.
(c) RM Section ,Circle Office
(d) SME Sulabh

Q36) The confirming authority for confirmation of high risk rated accountsup to Rs.35 Cr. for
rating under RAM model shall be _________ ?(Cir.86/2020)
(a)DGM
(b) DM / AGM
(c) SENIOR MANAGER
(d) CGM/GM

Q37)The confirming authority for confirmation of high risk rated accounts above Rs.250 Cr.
for rating under RAM model shall be _________ ?(Cir.86/2020)
(a)DGM
(b) DM / AGM
(c) SENIOR MANAGER
(d) CGM/GM

Q38) The confirming authority for confirmation of moderate risk rated accounts above Rs.
35 Crores and up to Rs.250 Cr. for rating under RAM model shall be _________
?(Cir.86/2020)
(a)DGM
(b) DM / AGM
(c) SENIOR MANAGER
(d) CGM/GM

CIBM, Manipal-Multiple Choice Questions – 2020 313

Q39Which of the following documents is not mandatory for any procedure including
opening of bank account by branches/offices? (Cir. 94/2020)
(e)Article of Association
(a) Company PAN CARD
(b) Copy of Registration with RoC (Registrar of Companies)
(c) Company Seal/Rubber Stamp

Q40) Which of the following accounts is not eligible for coverage under Pradhan Mantri
Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme
(RWBCIS)? (Cir. 95/2020)
(a)All loanee farmers growing the notified crops in the notified areas
(b) All non loanee farmers growing the notified crops in the notified areas
(c) All farmers including share croppers and tenant growing the notified crops in the notified
areas
(d) KCC/Crop Loans that are not standard assets as defined and as per prevailing practices
of the concerned Banks/Govt.

Q41) Branches to claim commission at ____ of the amount paid as farmers premium by the
branch, along with applicable GST, from the concerned insurance company within 15
days from the date of acceptance of crop insurance data by them?(Cir. 95/2020)
(a) 2%
(b) 3%
(c) 4%
(d) 5%

Q42)Premium remittance to Insurance Companies is to be made through the payment

gateway______, which is made available in the crop Insurance portal?(Cir. 95/2020)
(a) Pay-Gov
(b) IMPS
(c) BILL DESK
(d) Canara Bank Internet Banking

Q43)The following document has been has been made mandatory for availing Crop
insurance from Kharif 2017 season onwards(Cir. 95/2020)
(a) AADHAAR
(b) PAN CARD
(c) DRIVING LICENSE
(d) PASSPORT

CIBM, Manipal-Multiple Choice Questions – 2020 314

Q44) The new IGL code which has been created for accounting of the commission received
from insurance companies for coverage under Pradhan Mantri Fasal Bima Yojana
(PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS is _____.(Cir.
95/2020)
(a) 320020901
(b) 320020911
(c) 320020921
(d) 320020931

Q45)Simple Mortgage can be put through by branches/offices only after obtaining

permission from _________? (Cir. 97/2020)
(a)Branch Manager
(b) Regional Office
(c) Next Higher Authority
(d) Head Office

Q46) Simple Mortgage can be put through by branches/offices without obtaining

permission in case of _________? (Cir. 97/2020)
(a) Agricultural Loans
(b) Housing Loans
(c) Mortgage Loans
(d) None of the above

Q47)As per delegation of powers for permitting concession in ROI for MSME accounts
linked to MCLR based on marks scored under scoring matrix the minimum marks to be
scored by a borrower to be eligible for concession in ROI is ____?(Cir. 98/2020)
(a) 30
(b) 40
(c) 45
(d) 50

Q48) As per delegation of powers to CGM/GM CO CAC (for all borrowal accounts up to
their delegated powers)can permit concession in ROI for MSME accounts linked to MCLR
based on marks scored (Score range 81-100) under scoring matrix, subject to minimum
of ROI of ____?(Cir. 98/2020)
(e)MCLR+1.75%
(a) MCLR+1.50 %
(b) MCLR+1.25 %
(c) MCLR+1.00 %

CIBM, Manipal-Multiple Choice Questions – 2020 315

Q49) As per delegation of powers to CGM/GM CO CAC (for all borrowal accounts up to
their delegated powers)can permit concession in ROI for MSME accounts linked to MCLR
based on marks scored (Score range 81-100) under scoring matrix, Maximum reduction
from applicable ROI linked to MCLR is ____?(Cir. 98/2020)
(a) 0.25
(b) 0.35
(c) 0.50
(d) 0.75

Q50) For socio-economic development of communities living in coastal areas of country,

Ministry of Shipping is launching an umbrella convergence scheme called
__________? (Cir. 100/2020)

(a)Sagartat Sanmudayik Vikas Yojana (SSVY).

(b) Samudrik Vikas Yojana (SVY)
(c) Indian Ocean Area Development Programme (IOADP)
(d) Indian Costal Area Development Programme (ICADP)

ANSWERS TO MCQ ON CIRCULARS 51/2020 to 100/2020

1 2 3 4 5 6 7 8 9 10
C A B D B D A D D A
11 12 13 14 15 16 17 18 19 20
B A B C A D D A B C
21 22 23 24 25 26 27 28 29 30
B B A C C B A B A A
31 32 33 34 35 36 37 38 39 40
D C B C A C A D A D
41 42 43 44 45 46 47 48 49 50
D C A A B C A B A D
51 A

CIBM, Manipal-Multiple Choice Questions – 2020 316

 Circular based MCQ (101/2020 to 150/2020)
1. Scanning and uploading KYC data of all Individual Accounts to CKYCR -Uploading time
reduced to ______ from T+9 days from the date of account opening.
A. T+8 days B. T+7 days C. T+6 days D. T+5 days

2. The Ministry of Finance, GOI has come out with a Scheme viz. ______ for One Time
Settlement of Direct Tax Liabilities of a Taxpayer.
A. Vivad Se Vishwas Scheme B. Vivad Se Vivad Scheme

C. Vishwas Se Vishwas Scheme D. Vishwas Se Vivad Scheme

3. _____ is a one stop portal to facilitate online procurement of common use Goods &
Services required by various Government Departments / Organizations / Public Sector
Undertakings (PSUs)
A. Government e-Marketplace (GeM) B. Government Business Module (GbM)
C. Government Helpdesk (GhM) D. Government admin Module (GaM)

4. Free cheques issued to the SB customer is____

A. First 20 leaves in calendar year B. First 30 leaves in calendar year

C. First 40 leaves in calendar year D. First 50 leaves in calendar year

5. The cheque book charges for individual SB customer is ___a er free leaves.

A. Rs. 1 for cheque leaf. B. Rs. 2 for cheque leaf.

C. Rs. 3 for cheque leaf. D. Rs. 4 for cheque leaf.

6. The charges for issuing duplicate pass book

A. Rs. 50/- With latest Balance B. Rs. 75/- With latest Balance

C. Rs. 100/- With latest Balance D. Rs. 150/- With latest Balance

CIBM, Manipal-Multiple Choice Questions – 2020 317

7. Closure of SB account charges beyond 14days and within 1 year is __

A. Rs. 50/- B. Rs. 100/- C. Rs. 150/- D. Rs. 200/-

8. Cheque return charges upto Rs. 1 crore is

A. Rs.500/- per instrument B. Rs.1000/- per instrument

C. Rs.750/- per instrument D. Rs.5000/- per instrument

9. Charges for nomina on Change

A. Rs. 50/- B. Rs. 100/- C. Rs. 150/- D. Rs. 200/-

10. Charges for CASA Account transfer

A. Rs. 50/- B. Rs. 100/- C. Rs. 150/- D. Rs. 200/-

11. Cash withdrawal charges for SB customers beyond 5 transac ons are __
A. Rs. 50/- B. Rs. 100/- C. Rs. 150/- D. Rs. 200/-

12. RTGS charges for above 5 lakhs are ___

A. Rs. 24.50 B. Rs. 49.50 C. Rs. 75.50 D. Rs. 89.50

13. RTGS charges for above 2 lakhs are ___

A. Rs. 14.75 B. Rs. 24.50 C. Rs. 34.75 D. Rs. 44.75

14. NACH Mandate registra on charges

A. Rs. 50/- B. Rs. 100/- C. Rs. 150/- D. Rs. 200/-

15. IMPS (Mobile & Internet Banking) charges for Beyond Rs.5000/- to Rs.25000/-

A. Nil B. Rs. 5/- C. Rs. 10/- D. Rs. 15/-

CIBM, Manipal-Multiple Choice Questions – 2020 318

16. The maximum limit under Negotiable Warehouse Receipt Finance is

A. 1 crore B. 2 crores C. 3 Crores D. 5 Crores

17. OTR Scheme to MSME loans in default but under standard asset category as at 01-01-
2020 with exposure upto ____to be implemented on or before 31-12-2020
A. Rs.5.00 Crores B. Rs.10.00 Crores
C Rs.15.00 Crores D. Rs.25.00 Crores

18. Processing charges for Housing Loan is

A. 0.50% of the loan amount (Minimum of Rs. 1,500 and Maximum of Rs. 10,000)
B. 0.75% of the loan amount (Minimum of Rs. 1,500 and Maximum of Rs. 10,000)
C. 1.00% of the loan amount (Minimum of Rs. 1,500 and Maximum of Rs. 10,000)
D. 1.50% of the loan amount (Minimum of Rs. 1,500 and Maximum of Rs. 10,000)

19. Inspec on charges for Housing Loan ( Loans above Rs. 10 lakhs) is _____
A. Rs.100/- per borrower per inspection B. Rs.200/- per borrower per inspection
C. Rs.300/- per borrower per inspection D. Rs.400/- per borrower per inspection

20. Processing charges for Canara Vehicle Loan is

A. 0.25% of the Loan amount (Minimum of Rs. 1,000 to Maximum of Rs 5,000)
B. 0.50% of the Loan amount (Minimum of Rs. 1,000 to Maximum of Rs 5,000)
C. 0.25% of the Loan amount (Minimum of Rs. 250 to Maximum of Rs 1,000)
D. 0.50% of the Loan amount (Minimum of Rs. 250 to Maximum of Rs 1,000)

21. Inspec on charges for Canara Vehicle Loan ( Loans upto Rs. 10 lakhs) is _____
A. Rs.100/- per borrower per inspection B. Rs.200/- per borrower per inspection
C. Rs.300/- per borrower per inspection D. Rs.400/- per borrower per inspection

22. Documenta on charges for Canara Mortgage Loan is

A. Rs 100/Lakh (Min Rs 100 Max Rs 2,500)
B. Rs 100/Lakh (Min Rs 1000 Max Rs 25,000)
C. Rs 200/Lakh (Min Rs 100 Max Rs 2,500)
D. Rs 200/Lakh (Min Rs 1000 Max Rs 25,000)

23. Processing charges for short term agriculture loan amount more than 2 lakhs is _
A. Rs.250 Per lakh or part thereof Maximum Rs. 10,000/-
B. Rs.250 Per lakh or part thereof Maximum Rs. 25,000/-
C. Rs.250 Per lakh or part thereof Maximum Rs. 1,00,000/-
D. Rs.250 Per lakh or part thereof Maximum No Ceiling

CIBM, Manipal-Multiple Choice Questions – 2020 319

24. Mortgage charges for agriculture loan amount upto 50 lakhs is _

A. NIL B. Rs.1,000/- C. Rs.5,000/- D. Rs.10,000/-

25. Charges for issuing solvancy cer ficate for amount up to Rs. 25 lakhs is
A. Rs. 750/- B. Rs. 1,500/- C. Rs. 3,000/- D. Rs. 6,000/-

26. No Due cer ficate charges for priority sector advances (other than govet sponsered /agri
loans upto Rs. 50,000/-) are___
A. Rs. 50/- B. Rs. 100/- C. Rs. 250/- D. Rs. 1,000/-

27. Card validity for Canara RuPay Select Debit Card

A. 3 years B. 5 years C. 7 Years D. 10 years

28. Per day purchase limit in Canara RuPay Select Debit Card is
A. Rs. 50,000/- B Rs. 1,00,000/- C. Rs. 1,50,000/- D. Rs. 2,00,000/-

29. “Accident Death & Permananat Total disability insurance” coverage in Canara RuPay
Select Debit Card is
A. Rs. 2,00,000/- B. Rs. 5,00,000/- C. Rs. 7,00,000/- D. Rs. 10,00,000/-

30. The following services have been NOT enabled at Business Correspondent Locations
A. Applying of RuPay debit card. B. Registration for SMS alerts.
C. Remittance through NEFT Transaction . D. Issuing of Debit card.

31. One Time Password [OTP] based cash withdrawal at our ATMs for a per day limit of
above ____introduced for our Debit Card holders
A. Rs. 10,000/- B. Rs. 15,000/- C. Rs. 20,000/- D. Rs. 40,000/-

32. ______are empowered to decide the ATM locations / Relocations in respect of both
CAPEX and OPEX ATMs [within the Circle]
A. RO Head B. Circle Head C. DBS Wing, HO D. DIT Wing, HO

33. Immediate discontinuation of customer photo printing in all variants of debit cards
except in case of existing specialized variants like
A. Campus cards B. Cobranded cards
C. CANDI Branch cards. D. All the above

34. The quantum of loan for Scale 4 and 5 Employees under Employee Housing Loan scheme
A. Rs. 50 lakhs B. RS. 75 lakhs C. Rs. 100 lakhs D. Rs. 125 lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 320

35. The quantum of loan for Scale 1 to 3 Employees under Employee Housing Loan scheme
A. Rs. 50 lakhs B. RS. 75 lakhs C. Rs. 100 lakh D. Rs. 125 lakhs

36. The NTH to be maintained by Employees under Employee Housing Loan scheme
A. 20% B. 25% C. 30% D. 35%

37. The quantum of loan for Scale 4 and 5 Employees for Repair & Renova on under
Employee Housing Loan scheme
A. Rs. 5 lakhs B. RS. 8 lakhs C. Rs. 12 lakhs D. Rs. 15 lakhs

38. The quantum of loan for Scale 1 to 3 Employees for Repair & Renova on under
Employee Housing Loan scheme
A. Rs. 5 lakhs B. RS. 8 lakhs C. Rs. 12 lakhs D. Rs. 15 lakhs

39. The maximum loan for officer Employees under Employee vehicle Loan scheme
A. Rs. 6 lakhs B. RS. 7.5 lakhs C. Rs. 10 lakhs D. Rs. 12 lakhs

40. For seized Motor Vehicles or Old Vehicle used by bank, when it is auctioned for a
consideration exceeding____, Bank has to collect TCS equal to one per cent of the sale
consideration.
A. Rs. 6 lakhs B. RS. 7.5 lakhs C. Rs. 10 lakhs D. Rs. 12 lakhs

41. Tax collected during the month is to be remitted to Income Tax Department before
A. 5th of subsequent month B. 7th of subsequent month
C. 5th of subsequent Quarter D. 7th of subsequent Quarter

42. Lodging of ATM failed transac ons in

A. ATM package B. DBS package C. CCR package D. GBM Package

43. Branches have to send the loan sanc ons for review to the next higher authority where
loan sanc on is above
A. Rs. 1 lakh B. Rs. 2 lakhs C. Rs. 5 lakhs D. Rs. 10 lakhs

44. All sanc ons should place to the Reviewing Authority for review _______from the date
of receipt of complete set of papers without fail
A. within 7 days B. within 10 days C. within 15 day D. within 30 days

45. Pre Release Audit is applicable for loans and advances (fund based+non-fund based)
other than Retail lending loans.
A. Rs. 1 Crore B. Rs. 2 Crores C. Rs. 5 Crores D. Rs. 10 Crores

46. 2 LSRs are to be obtained Where value of property is ____and above

A. Rs. 1 Crore B. Rs. 2 Crores C. Rs. 5 Crores D. Rs. 10 Crores

CIBM, Manipal-Multiple Choice Questions – 2020 321

47. Credit Audit is applicable for loans and advances (fund based+non-fund based) ___and
above
A. Rs. 1 Crore B. Rs. 2 Crores C. Rs. 3 Crores D. Rs. 10 Crores

48. CMF and CMF cum MTR is applicable for loans and advances (fund based+non-fund
based limits) ____and above (in case of Low, Normal and Moderate Risk Rated Accounts)
A. Rs. 1 Crore B. Rs. 2 Crores C. Rs. 3 Crores D. Rs. 10 Crores

49. Stock audit is applicable for loans and advances (fund based+non-fund based limits)
____and above (in case of Low and Normal Risk Rated Accounts)
A. Rs. 1 Crore B. Rs. 2 Crores C. Rs. 3 Crores D. Rs. 5 Crores

50. Stock audit is applicable for loans and advances (fund based+non-fund based limits)
____and above (in case of Moderate and high Risk Rated Accounts)
A. Rs. 1 Crore B. Rs. 2 Crores C. Rs. 3 Crores D. Rs. 5 Crores

51. Large Credit Monitoring package (LCM) is applicable for Sanctioned Limit (both Fund
based & Non Fund based) of _______and above
A. Rs. 1 Crore B. Rs. 2 Crores C. Rs. 3 Crores D. Rs. 5 Crores

52. All Loan Accounts of borrowers where the aggregate liability is ___and above, becoming
NPAs within a period of 12 months from the date of commencement of repayment are
Quick mortality accounts.
A. Rs.5.00 lakhs B. Rs.10.00 lakhs C. Rs.15.00 lakhs D. Rs.25.00 lakhs

53. Charges applicable for Addition of security Interest in CERSAI for loans above Rs. 5 lakhs
are ____
A. Rs. 50/- B. Rs. 100/- C. Rs. 150/- D. Rs. 250/-

54. . Charges applicable for sa sfacion of security charge in CERSAI for loans above Rs. 5
lakhs are ____
A. Rs. 50/- B. Rs. 100/- C. Rs. 150/- D. Rs. NIL

55. CMO's shall attend to the functions of monitoring accounts with total exposure
(FB+NFB) of _____ and above and other functions assigned to them and shall provide
precious and timely information on conduct of accounts at branch level.
A. Rs.10.00 lakh B. Rs.25.00 lakh C. Rs.50.00 lakh D. Rs.75.00 lakh

56. Formation of Credit Monitoring Cells is mandatory at all branches having borrowal
accounts of exposure of Limits of ______ and above (working capital / term loan)
A. Rs.10.00 lakh B. Rs.25.00 lakh C. Rs.50.00 lakh D. Rs.75.00 lakh

CIBM, Manipal-Multiple Choice Questions – 2020 322

 57. QOS/ HOS is applicable to Industrial borrowers, merchant exporters, traders etc.,
enjoying Working Capital limits of _____ and above from the banking system
A. Rs. 1 Crore B. Rs. 2 Crores C. Rs. 3 Crores D. Rs. 5 Crores

58. Project Implementation Progress Report (PIPR) where the credit facility relating to
acquisition of capital assets is ______ and above shall be obtained on a quarterly basis.
A. Rs.10.00 lakh B. Rs.25.00 lakh C. Rs.50.00 lakh D. Rs.75.00 lakh

59. Under Risk Management, our Bank introduced Facility Rating for Corporate Loan
Portfolio Exposure above_____ FB+NFB
A. Rs. 1 Crore B. Rs. 2 Crores C. Rs. 3 Crores D. Rs. 5 Crores

60. Special OTS introduced by our Bank for All NPA accounts under Agriculture loans and
advances with limits / combined limits sanctioned on or before 31.3.2014, upto _____are
eligible under the scheme
A. Rs.10.00 lakh B. Rs.25.00 lakh C. Rs.50.00 lakh D. Rs.75.00 lakh

61. Special OTS introduced by our Bank for All NPA accounts under MSME loans and
advances with limits / combined limits sanctioned on or before 30.9.2019, upto _____are
eligible under the scheme
A. Rs.10.00 lakh B. Rs.25.00 lakh C. Rs.50.00 lakh D. Rs.100.00 lakh

62. Special OTS introduced by our Bank for All Doub ul and Loss small value NPA accounts
upto _____are eligible under the scheme
A. Rs.10.00 lakh B. Rs.25.00 lakh C. Rs.50.00 lakh D. Rs.100.00 lakh

ANSWER KEYS BC 101/2020 to 150/2020

1-D 2-A 3-A 4-A 5-D 6-C 7-D 8-A 9-B 10-A
11-B 12-B 13-B 14-D 15-B 16-D 17-D 18-A 19-C 20-A
21-B 22-B 23-D 24-A 25-C 26-A 27-B 28-D 29-D 30-D
31-A 32-B 33-D 34-C 35-B 36-C 37-D 38-C 39-D 40-C
41-B 42-C 43-C 44-A 45-B 46-C 47-C 48-C 49-D 50-A
51-A 52-C 53-B 54-D 55-C 56-C 57-D 58-C 59-D 60-B
61-D 62-B

CIBM, Manipal-Multiple Choice Questions – 2020 323

 Circular based MCQ (151/2020 to 200/2020)
CIR:152/2020 Incentive to staff for Covid-19

1. Reimbursement provided to Canara bank staff by bank towards purchase of material for
personal protection from COVID -19 was:
a. Rs.800/-
b. Rs.1000/-
c. Rs.500/-
d. No such scheme

CIR:153/2020 Senior Citizen Saving Scheme-2019

2. Who can not open account in SCS scheme:
a. An individual, who is resident of India attained age 60
b. An individual, who is resident of India attained age 55 or more and retired on
superannuation or otherwise
c. An The retired personnel of Defence Services (excluding Civilian Defence employees)
shall be eligible to open an account under this scheme on attaining the age of 50 years
d. The successor or legal heir of a deceased serving personnel

3. SCSS Account will mature for payment:

a. 7 Year from the date of opening (can be further extended upto 3 years)
b. Ten year from the date of opening
c. It is a running account hence no maturity
d. On completion of five year (can be further extended upto 3 years)

4. Min & Max deposit amount accepted in SCSS Account,2019 is :

a. Min 500/- & Max 150000/- in multiple 100/-
b. Min 1000/-& Max 1500000/- in multiple 100/-
c. Min 1000/-& Max 1500000/- in multiple 1000/-
d. Min 10000/-& Max 1500000/- in multiple 10000/-

5. How much charges will be collected on transfer of SCSS Account from branch to branch
or from our bank to other bank/Post office?
a. Rs.100/-
b. Rs.50/-
c. Rs.500/-
d. No charges

CIBM, Manipal-Multiple Choice Questions – 2020 324

6. How many nominee can be there in SCSS Account,2019
a. Not exceeding one
b. Not exceeding two individuals
c. Not exceeding three individuals
d. Not exceeding four individuals

7. SCSS Account can be extended for how many years:

a. Three year from the date of maturity
b. Three year from the date of maturity but request should be within one year of maturity
c. No extention is permitted
d. Five year from the date of maturity

8. What is the threshold limit for TDS on interest income ?

a. Rs 50,000/- per annum for Senior Citizens; and Rs 40,000/- for others.
b. No TDS on interest amount
c. Rs 10,000/- per annum for Senior Citizens; and Rs 40,000/- for others.
d. Rs 40,000/- per annum

CIR:154/2020 PPF Scheme-2019

9. Who are not eligible to open PPF account?
a. An individual(Resident citizen of India) of 18 year & above
b. An individual may also open one account on behalf of each minor
c. NRIs / HUFs
d. An individual may also open one account on behalf of a person of unsound mind of
whom he/she is the guardian

10. How much initial deposit amount required in PPF Account?

a. Rs.1000/-
b. Rs.5000/-
c. Rs.500/-
d. No such requirement

11. What is min & max limit of deposit amount in PPF accounts:
a. Min Rs.500/- Max Rs.150000/-
b. Min Rs.500/- Max Rs.150000/-any no. of installment or lump sum in a financial year
c. Min Rs.500/- Max Rs.150000/-any no. of installment or lump sum in a financial year in
multiples of Rs 50/-
d. NO min & Max Limit

CIBM, Manipal-Multiple Choice Questions – 2020 325

12. What are the charges for Cancellation or Change of Nomination in PPF accounts?
a. No charges
b. Rs.100/-
c. Rs.50/-
d. Rs.500/-

13. What are the charges for Transfer of PPF account from Branch to Branch or from our
Bank to other Bank/Post Office and vice-versa
a. Rs.50/- b. Rs.75/- c. Rs.100/- d. Rs.500/-

14. What are the charges for issuing duplicate passbook to PPF account holder?
a. Rs. 50/-
b. Rs.100/-
c. No charges
d. Duplicate passbook cannot be issued

CIR:155/2020 Sukanaya Samriddhi Account (SSA) Scheme-2019

15. What are the min & max amounts accepted in Sukanaya Samriddhi accounts.
a. Min 500 & Max 100000 in a year
b. No min & Max Rs.100000/ fixed
c. Min 250 & Max 150000 in a financial year in multiple of Rs.50/-
d. No min & Max ceiling

16. When will Sukanaya Samriddhi account mature for payment

a. 10 years from date of opening
b. 18 years from date of opening the account
c. It is a running account hence no maturity
d. Account matures on completion of 21 years from the date of opening of the account

17. Whether premature closer is permitted in Sukanaya Samriddhi account.

a. Death of beneficiary account holder
b. On ground of medical support in life threatening diseases of the account holder and
death of the guardian.
c. If an account holder ceases to be a citizen of India
d. All the above

CIBM, Manipal-Multiple Choice Questions – 2020 326

CIR: 164/2020 Empanelment of Advocates

18. What is the eligibility for Empanelment of Advocates and Entrustment of Cases
a. Minimum 5 (Five) years of actual practice in Civil / Criminal & office where empanelment
is sought
b. Minimum 3 (Three) years of actual practice in Civil / Criminal & office where
empanelment is sought
c. Minimum 2 (Two) years of actual practice in Civil / Criminal & office where
empanelment is sought
d. Minimum 2 (One) years of actual practice in Civil / Criminal & office where empanelment
is sought

CIR:162/2020 Master Policy on risk Management Modification

19. The Loan system of Delivery of Bank Credit (LSDBC) shall be applicable in the case of
borrowers
a. Borrowers enjoying FBWC limit of Rs 100 crores and above from the banking system.
b. Borrowers enjoying FBWC limit of Rs 50 crores and above from the banking system.
c. Borrowers enjoying FBWC limit of Rs 200 crores and above from the banking system.
d. Borrowers enjoying FBWC limit of Rs 150 crores and above from the banking system.

20. What is the Validity period / Revalidation of sanction for consortium accounts?
a. 3 Month b. 6 Month
c. 12 Month d. 9 Month

21. What is the limit for Collateral Free Loans to MSME

a. 5 Lakh b. 7.5 Lakh c. 10 Lakh d. 20 Lakh

CIR:171/2020 Introduction of CIRM

22. What is CIRM
a. Exposures above Rs.2 Crores in place of RAM Model
b. Canara Internal Rating Model
c. Unified Rating Model – CIRM to be followed post merger
d. All of the above

23. How many risk grades are there in CIRM

a. 10 Risk Grades including the default grade
b. 9 Risk Grades including the default grade
c. 12 Risk Grades including the default grade
d. 15 Risk Grades including the default grade

CIBM, Manipal-Multiple Choice Questions – 2020 327

 CIR:173/2020 Incentive to BC Agent
24. How much financial support given to BC Agent by Bank.
a. Rs. 1000/- to every functional BCAs
b. Rs. 2000/- to every functional BCAs
c. Rs. 2500/- to every functional BCAs
d. Rs. 1500/- to every functional BCAs

CIR:178/2020 Micro Finance Policy-2020-21

25. What is the definition of Micro Finance.
a. Micro Finance is the provision of loans and financial services to the poor.
b. Micro finance has a broader outlook which covers lending for Collateral Security
c. Productive activities, Consumption, Financial services like savings and insurance.
d. Other credit needs such as housing and shelter improvement and also
e. All the above

26. For financing SHG under cash credit, no. of members in the group shall be______ &
tenure is ________year
a. 5-10 & 1 b. 10-15 & 3 c. 10-20 & 5 d. 10-20 & 3

27. In case of SHG bank linkage programme, credit rating has to be done for assessment of
SHG’s while extending credit. The minimum score to qualify for credit linkage is
a. 50% b. 60% c. 70% d. 80%

28. The group size of a SHG should preferably be between ________ members to enable
effective participation.
a. 10-15 b. 5-10 c. 10-20 d.15-20

29. The proportion of savings/corpus to loan should gradually increase from 1:1 to
_______depending on the assessment of the SHG by the Branch.
a. 1 : 5 b. 1 : 4 c. 1 : 10 d. 1 : 3

30. Margin norm for financing to SHG loan upto 20 lakhs will be:
a. 10% b. 20% c. Nill d. 5%

31. Collateral norm for financing to SHG upto 20lacks will be :

a) 125% b) 100% c) 150% d) No collateral stipulated

CIBM, Manipal-Multiple Choice Questions – 2020 328

32. The minimum and maximum number of members in a Micro Credit group is restricted to
a. (3) and (5) in urban areas and (5) and (10) in rural and Semi urban areas.
b. (5) and (7) in urban areas and (5) and (10) in rural and Semi urban areas.
c. (7) and (10) in urban areas and (10) and (20) in rural and Semi urban areas.
d. (3) and (5) in urban areas and (10) and (15) in rural and Semi urban areas.

33. The Micro Credit Group shall consist of members whose individual income does not
exceed
a. 150000/-P.A b. 50000/-P.A c. 100000/-P.A d. 25000/-P.A

34. Under DAY-NRLM , financial assistance is provided to beneficiaries by way of interest

subvention on bank loans, for interest rate over _____ % charged by the banks.
a. 5% b. 6% c. 7% d. 9%

35. Under DAY-NRLM , ______% of additional interest subvention are provided to

Women SHGs on prompt repayment of the loan availed .
a. 4 % b. 2 % c. Nil d. 3 %

36. Under DAY-NRLM, _______ statutory identified districts are covered.

a. 450 b. 400 c. 500 d. 250

37. What is 'Panchasutra' in context of SHG

a. Regular meetings
b. Regular meetings
c. Regular inter-loaning
d. Timely repayment
e. Up-to-date books of accounts
f. All of the above

38. Number of women SHGs under DAY NRLM can be…..

a. 10-15 b. 10-20 c. 5-10 d. 8-10

39. For DAY-NRLM special SHGs, for groups …………….., there can be a minimum of 5
members.
a) Groups in Difficult areas
b) Groups with disabled persons
c) Groups formed in remote tribal areas
d) All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 329

40. A corpus of ……………………….. in the form of revolving fund (RF) is provided by
DAY-NRLM.
a) Minimum of Rs.5000/- to a maximum of Rs. 10000/-
b) Minimum of R10000/- to a maximum of Rs. 20000/-
c) Minimum of Rs.10000/- to a maximum of Rs. 15000/-
d) No Revolving fund is provided

41. Repayment schedule for term loans to SHGs under DAY NRLM
a. The First year/ first dose of loan will be repaid in 12 - 18 months in monthly/ quarterly
installments.
b. The Second year/ Second dose of loan will be repaid in 18 - 24 months in
monthly/quarterly installments.
c. The Third year/ Third dose of loan will be repaid in 24-36 months in monthly/ quarterly
installments.
d. The loan from Fourth year/ Fourth dose onwards has to be repaid between 3-6 years
based on the cash flow in monthly/ quarterly installments.
e. All of the above

CIR:181/2020 : Debit card issue policy :

42. Presently Canara Bank Debit Card issued in association with following :
a)VISA b) Master Card c) NPCI d) All of the above

43. At present how many variants are there for Canara bank debit Card.
a) One b) Two c) Three d) Four

44. CVV in a ATM card stands for

a) Card value verification b) Card verification value
c) Card verified value d) Card variety value

45. EMV certification is valid till

a) 31st Dec,2020 b) 31st Dec,2024
c) 31st Dec,2026 d) 31st Dec,2028

46. PVV stand for in case of ATM Debit card

a) Pin verification value b) Personal verification value
c) PIN verification value d) Personal value verified

CIBM, Manipal-Multiple Choice Questions – 2020 330

47. Canara Bank Debit card can be offered to
a) SB Account b) CA Account c) OD account d) All of the above

48. Canara Bank Debit card can be issued to

a) Individual a/c
b) Joint a/c with operation severally
c) NRI
d) Minor students who are aged 10 years and above.
e) All of the above

49. Expiry months printed on Debit card, card will expire on

a. First day of month b. last day of month
c. 10th of the month d. 20th of the month

50. The maximum period of validity of EMV chip card will up to _______years from the
month of issue.
a. 3 b. 5 c. 7 d. 10

51. Penalty of Rs. ______for each day of delay shall be credited to customer’s account with
disputed amount on wrongful debit in customer’s a/c on account of ATM failed
transactions.
a. 100/- b. 200/- c. 250/- d. No penalty

52.In terms of RBI guidelines, the wrongful debit in the customer’s a/c on account of ATM
failed transactions shall be reversed with in ______
a. T+3 b. T+7
c. T+5 d. T+10

53. Personalized Debit cards undelivered to be destroyed within a period of months as per
the guidelines of destruction of security items
a. 60 days b. 45 days c. 3 months d. 6 months

54. Which are all channels for Hot listing of debit cards.
a. Phone call
b. Email
c. SMS
d. Net Banking
e. Mobile banking
f. All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 331

55. When use of the card shall be terminated without notice.
a. Upon receiving intimation of the death
b. Bankruptcy or insolvency of the card holder
c. Receipt of a letter from any one of the joint account holders changing the operative
clause
d. Attachment order from a competent court or revenue authority
e. All of the above

56. As per the Debit card policy, what is the maximum limit for Platinum /Business Debit
Card in POS/Internet /Bharat QR
a. Rs 1 lakh b. Rs 2 lakh c. Rs 5 lakhs d. Rs 50000/-

57. As per the Debit card policy, what is the maximum cash withdrawal limit for
Platinum/Business debit Card
a. Rs 40000/- b. Rs 25000/- c. Rs 100000/- d. Rs 50000/-

58. What is the per day per card limit for cash withdrawls at EDC in tier I to tier II cities
a. Rs 1000/- b. Rs 5000/- c. Rs 3000/- d. Rs 2000/-

CIR:182/2020 Domestic Prepaid Instrument Policy

59. What is the maximum liability of all the Prepaid Instruments issued to a fully KYC
customer, shall not exceed Rs.1,00,000/- at any point of time.
a) Shall exceed Rs.1,00,000/- at any point of time
b) Rs.50000/-
c) Shall not exceed Rs.1,00,000/- at any point of time
d) No such limit

60. Prepaid cards are issued in how many variants:

a) 3
b) 4
c) 5
d) 2

61. What is the maximum validity of Prepaid Classic & Prepaid Plus Card :
a) 1 year
b) 5 year
c) 10 year
d) 3 year

CIBM, Manipal-Multiple Choice Questions – 2020 332

62. What is the validity of Fastag :-
a) 5 year
b) 1 year
c) 3 year
d) 2year

63. Fastag transactions are based on which technology :-

a) RFID Technology
b) Infrared Technology
c) Thermal technology
d) All of the above

65. Which is the dedicated toll free No. for Fastag:-

a) 1800 108 3535
b) 1800 104 4848
c) 1800103 3568
d) 1800 103 3570

66. Service charges @ Rs.100/- per year + applicable GST shall be levied on expired Prepaid
Instrument ( validity of Domestic Prepaid Instrument 3 years, Gift Card 1 years, FASTag 3
years) on completion of every year as maintenance charges after giving notice to
customer and prepaid instrument with less than Rs……………./- shall be closed after giving
proper notice.
a) 500
b) 1000
c) 2000
d) 100

CIR:183/2020 International Travel Prepaid Card Policy

67. Canara Bank International Travel Prepaid Card (CBITPC) which is multicurrency Forex
Travel Prepaid Card, is specially designed for :-
a) persons travelling abroad & students pursuing studies abroad
b) Only for students
c) For Business man only
d) Only b & c

68. What is the validity of International travel prepaid Card?

a) 3 years
b) 2years
c) 5years
d) 10 years

CIBM, Manipal-Multiple Choice Questions – 2020 333

69. Canara International Travel Prepaid Card kit shall contain: -
a) Two cards & respective PIN mailers.
b) Three cards & respective PIN mailers
c) Single card
d) Four Cards

70. Cancellation & refund of the card load or surrender/refund of unspent balance in the
Canara International Travel Prepaid Card shall be done at …………………. which are
authorized to issue the card.
a) RAH
b) FDs
c) Regional Offices
d) Branches

71. Canara International Travel Prepaid Cardholders can retain the unspent foreign
exchange in the card up to ………….. or its equivalent in other currency for future trips till
expiry of the card, as per extant FEMA guidelines.
a) USD 5000
b) USD 2000
c) USD 3000
d) USD 1000

72. Unspent currency in Canara International Travel Prepaid Card need to be surrender
within how many days:-
a) 90 days
b) 365 days
c) 180 days
d) 30 days

73. In which country Canara International Travel Prepaid Card cannot be used :-
a) America
b) Australia
c) Cuba
d) India

Cir 184/2020 DOP for concessions under service charges for non-credit
transactions
74. Delegation of powers for concessions under service charges for non-credit transactions
like RTGS /NEFT can be permitted for ________ transactions :
a) Inward
b) Inward & outward both
c) Outward only
d) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 334

Cir 186/2020 Staff benefits
75. Petrol limit for Officers Scale-1 who own a vehicle (in litres) Other than Branch Head
area 1
a. 45 L b. 50 L c. 35 L d.40 L

76. Petrol limit for Probationary Officers Scale-1 who own a vehicle (in litres)
Other than Branch Head area II
a. 45 L b. 50 L c. 35 L d.40 L

77. Petrol limit for workmen staff Directly recruited Probationary Clerical staff who own a
vehicle (in litres)
a. 5 L b. 6 L c. 7L d.8 L

78. Petrol limit for Special Assistants staff who own a vehicle (in litres)
a. 1 5 L b. 16 L c. 1 7 L d.13 L

79. Reimbursement of conveyance expenses to Confirmed Clerical staff who not owning a
vehicle (in Rs.)
a. Rs.500/- b. Rs.600 c. Rs.450/- d.Rs.550/-

80.What is the amount of reimbursement of subscription towards cost of newspaper to

Workmen Employees
a. 100% of cost of one daily
b. 90% of cost of one daily
c. 80% of cost of two daily
d. 95% of cost of one daily

81.What is the amount of reimbursement of subscription towards cost of newspaper to

Senior Management Grade Scale-IV & V
a. 100% of cost of two daily b. 90% of cost of two daily
c. 80% of cost of two daily d. 95% of cost of two daily

82.What is the limit for reimbursement of Business Development Expenses to Officers

Scale-II Br.Head
a. Rs.6000/- b.Rs.7000/-
c. Rs.8000/- d.Rs.9000/-

CIBM, Manipal-Multiple Choice Questions – 2020 335

83. What is the limit for reimbursement of Business Development Expenses to Officers
Scale-III other than Br.Head
a. Rs.6000/- b.Rs.7000/-
c. Rs.8000/- d.Rs.9000/-

84. What is the limit for reimbursement of Business Development Expenses to Officers
Directly recruited Probationary Scale-1
a. Rs.4500/- b.Rs.3000/-
c. Rs.2500/- d.Rs.3500/-

85.What is the amount for reimbursement of Lunch Expenses to staff.

a. Rs.450/- b.Rs.300/-
c. Rs.250/- d.Rs.350/-

86. What is the amount for presenting Mementos to retiring employee on superannuation
to officer Scale-III
a. Rs.50000/- b.Rs.30000/-
c. Rs.25000/- d.Rs.35000/-

87.What is the reimbursement amount towards purchase of cleaning material are to Officer
Scale-2
a. Rs.450/- b.Rs.300/-
c. Rs.500/- d.Rs.400/-

88. What is the Quantum/ Periodicity of woolen livery to All Armed Guards/ Security
Guards/ Probationary Watchman.
a. Rs.4000/- for 3 sets once in 2 years(inclusive of stitching charges)
b. Rs.4000/- for 1 set once in 3 years (inclusive of stitching charges)
c. Rs.4000/- for 2 set once in 3 years (inclusive of stitching charges)
d. Rs.4000/- for 1 set once in 2 years (inclusive of stitching charges)

Cir 187/2020 Trading in our Bank’s share – Code of Conduct

89. All Designated Persons of the Bank shall submit annual disclosure and disclose names
and PAN or any other identifier authorized by law of the following persons and related
information:
a. Immediate relatives
b. Persons with whom such designated person shares a material financial relationship
c. Phone, mobile and cell numbers which are used by them
d. All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 336

90. As per "Canara Bank Code of Conduct for Prohibition of Insider Trading" Insider" means
any person who is :
a. A connected person - any person who is or has during the six months prior to the
concerned act been associated with the Bank, directly or indirectly
b. A person in possession of or having access to Unpublished Price Sensitive Information
c. A person who has unpublished price sensitive information pursuant to a legitimate
purpose.
d. All of the above

Cir 188/2020- Internet banking Policy

91. Who are eligible for Net Banking-Retail :-
a. Any running account of individual/s including Staff, NRI and Minor represented by
Guardian, Minor Above 10 Years.
b. Joint Account/s where operation condition is severally - Joint or First (JOF) or Joint or
others (JOO).
c. Such account/s should be fully KYC compliant.
d. All of the above

92. Which of the following account is ineligible for net banking facility:-
a) Individuals
b) Minor accounts operated by Guardians, by guardian of the minor.
c) Visually challenged persons
d) Account/s of illiterate persons.

Cir 190/2020- Revision of Small value & manual Model (CRR )

93. Risk rating model used for borrowers with aggregate limits of above Rs. 2lacks and upto
and including Rs. 20lacks
a) Manual Model
b) Small value model
c) CRIM
d) RAM

94. Which are all risk included in revised Small value model for Individual / Proprietorship
borrower
a) Business Risk
b) Management Risk
c) Financial Risk
d) Demographic Risk
e) All the above

CIBM, Manipal-Multiple Choice Questions – 2020 337

 Cir 191/2020- Fixation of project /financial benchmarks for various industries
For following industries certain financial benchmark are being fixed, refer to the industry
serial number while answering the following questions :
i. Food Processing
ii. Paper & Paper Products
iii. Petroleum, Coal Products and Nuclear Fuels
iv. Chemicals and Chemical Products
v. Cement and Cement Products
vi. Basic Metal and Metal Products
vii. All Engineering
viii. Vehicles, Vehicle Parts and Transport Equipment’s
ix. Construction

95. DSCR for corporate borrowers not less than 1.50 and for MSME borrowers not less than
1.25 are fixed for which of the following industries?
a. i. ii. v. ix.
b. iii. vi. viii.
c. ii. iii. iv. v.
d. i. iv. v. vii.

96. DSCR for corporate borrowers not less than 2.00 and for MSME borrowers not less than
1.75 are fixed for which of the following industries?
a. i. ii. v. ix.
b. i. iii. iv. v.
c. ii. iii. iv. v.
d. i. iv. v. vii.

97. Incase of exposure above 1 crore for industries for which parameters are not defined, in
exceptional cases, value of Debt Equity Ratio (DER) greater than benchmark value (3:1)
can be accepted permitted by ________ and maximum upto ________ with
justifications:
a. DGM-CO-CAC ; 5:1
b. DGM-CO-CAC ; 6:1
c. DGM-CO-CAC ; 4:1
d. AGM-CO-CAC ; 5:1

98. Incase of exposure above 1 crore for industries for which parameters are not defined, in
exceptional cases, value of DSCR lower than benchmark value (1.50) can be accepted
permitted by ________ and maximum upto ________ with justifications:
a. DGM-CO-CAC ; 1.20
b. DGM-CO-CAC ; 1.40
c. DGM-CO-CAC ; 1.30
d. AGM-CO-CAC ; 1.25

CIBM, Manipal-Multiple Choice Questions – 2020 338

Cir 192/2020- Merchant Enrolment Policy 2020-21

99. What is per day per merchant high value transaction limit for merchant categories like
jewelers and travel agents:
a. Rs. 1 lac b. Rs. 5 lac c. Rs. 3 lac d. Rs. 4 lac

100. What is per day per merchant high value transaction limit for merchant
categories other than jewelers and travel agents:
a. Rs. 1 lac b. Rs. 2 lac c. Rs. 3 lac d. Rs. 4 lac

101. As per MEITY (Ministry of Electronics and Information Technology), the MDR
is waived irrespective of merchant category and transaction value for
a. Rupay Debit cards b. BHIM UPI c. UPI QR Code d. All of the above

102. MEITY has withdrawn the scheme of reimbursement of MDR for debit card
transactions upto …………….. lakh rupees for Government merchants.
a. Rs. 2 lakh b. Rs. 1 lakh c. Rs. 5 lakh d. Rs. 3 lakh

103. For enlistment of merchant/s the applicant merchant should have satisfactory
dealings with the branch for at least for …….. year.
a. 2 years b. 3years c. 1years d. 5years

104. For new Merchant establishments who is empowered to extend the POS
facility at the time of on-boarding the ME.
a) Circle Head
b) RO Head
c) CGM
d) Branch Head

105. Which types of merchants comes under the category of High Risk Merchants:-
a) Antiques, Carpets & Furnishings,
b) Jewellery, Art Gallery,
c) Handicrafts & Mobile Stores
d) All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 339

Cir 194/2020- Incentive scheme for capacity building for officers & clerical
employees

106. For how many courses/certification reimbursement/cash incentive can be claimed in a

financial year.
a. 5 courses/certifications
b. 4 courses/certifications
c. 3 courses/certifications
d. No such restriction

107. Cash Incentives for Successful completion of the courses under the scheme, Group:II
a. Rs.15000/- b. Rs.10000/- c. Rs.6000/- d. Rs. 9000/-
Cir 195/2020- Payment Gateway policy

108. Objectives of Payment gateway policy is as following choose most appropriate option)
a. Integrating the intended Payment Aggregators directly to our Net Banking facility and /
or Debit card facility.
b. Enrolling Payment Aggregators (also called as Aggregators) for providing payment
Gateway services.
c. Enrolling Merchants (For ex: Flipkart, IRCTC) for direct integration with our Net Banking
facility and / or Debit card facility.
d. All of the above

109. A new product which is a white label fee collection solution for Bank’s existing
Customers/ Prospective customers (Educational Institutions) not having their own
ERP/solution to collect fees from the students online and are unable to manage the
database of the students.
a. CANARA EASY FEE b. CANARA PAY c. CANARA FEE d. CANEASY

Cir 197/2020- Modification in Retail Liability products

110. Sweep in / Sweep out facilities to be extended / provided to the Savings Bank Deposit
and Current account holders w.e.f 01.04.2020 for a period of minimum ______days to a
maximum of ____days on request of the customers with his choice for the tenor in the
given range.
a. 15 ; 190 days b. 15; 185 days c. 15; 181 days d 15; 30 days

111. The following new products have been adopted in the Amalgamated entity:
a. MACAD SB ACCOUNT MACT claims SB Account
b. MACAD TERM DEPOSITS Motor Accident Claims Annuity Deposit (MACAD).
c. RERA ACCOUNT Current Account in the nature of Collection Account of the Builders /
Developers under the RERA provisions
d. All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 340

112. The following products have been discontinued in the Amalgamated entity:
a. CASA - CANARA FLEXI, CAN PREMIUM CURRENT ACCOUNT, SYND PRIVILEGE TAB
BANKING, SB SYND MILLIONAIRE ABOVE TO 10, MULTICITY CORPORATE Current A/C
b. Term Deposit - SYND DISHA DOMESTIC, FD STAFF-CANARA SHIKHAR QRTRLY INT
c. Recurring Deposit – RECURRING DEPOSIT SPECIAL(183 code)
d. All of the above

Cir 198/2020- Bharat Bill Pay Policy

113. Incase of Refund of failed transactions related to BBPS facility transactions, Refund
process takes T + ___ days for settlement
a. 10 b. 3 c. 5 d. 7

114. Settlement process related to BBPS facility transactions is governed by

_______directives
a. RBI b. DBS wing HO c. Mo IT d NPCI

Cir 200/2020- Sustainable development & CSR Policy 2020-21

115. Which of the following are Core elements of Corporate Social Responsibility?
a. Conduct ethical Business
b. Care for People / Stake holder
c. Care for Environment
d. Social and inclusive development of all
e. All of the above

116. How much amount to be spent under CSR by Corporate\s :

a. 2 % of Average Net profits of 3 immediately preceding FY
b. 5 % of Average Net profits of 3 immediately preceding FY
c. 4 % of Average Net profits of 3 immediately preceding FY
d. 3 % of Average Net profits of 3 immediately preceding FY

CIBM, Manipal-Multiple Choice Questions – 2020 341

 AWNSER KEY CIR 151/2020 TO 200/2020

1 B 2 D 3 D 4 C 5 A 6 D 7 B 8 A 9 C 10 C
11 C 12 C 13 C 14 A 15 C 16 D 17 D 18 A 19 D 20 C
21 C 22 D 23 C 24 B 25 E 26 C 27 C 28 C 29 B 30 C
31 D 32 A 33 B 34 C 35 D 36 D 37 F 38 B 39 D 40 C
41 E 42 D 43 B 44 B 45 D 46 A 47 D 48 E 49 B 50 B
51 A 52 C 53 C 54 F 55 E 56 B 57 D 58 A 59 C 60 A
61 D 62 C 63 A 64 C 65 D 66 A 67 A 68 C 69 A 70 D
71 B 72 C 73 C 74 B 75 A 76 C 77 D 78 D 79 C 80 B
81 B 82 C 83 C 84 B 85 D 86 B 87 D 88 B 89 D 90 D
91 D 92 D 93 B 94 E 95 A 96 B 97 C 98 B 99 C 100 B
101 D 102 B 103 C 104 A 105 D 106 C 107 B 108 D 109 A 110 C
111 112 113 C 114 D 115 E 116 A

CIBM, Manipal-Multiple Choice Questions – 2020 342

 Circular based MCQ (201/2020 to 250/2020)
1. What is SDCSR Policy?
a) Sustainable Development and Corporate Social Responsibility Policy
b) Sustainable Deployment and Corporate Social Responsibility Policy
c) Sustainable Development and Corporate Social Responsiveness Policy
d) Sustainable Development and Corporate Security Responsibility Policy

2. Banks credit to registered NBFCs (other than MFIs) and HFCs for on-lending will be
allowed upto a level to be classified as priority sector lending , which is within the overall
limit of ……. percent of individual Bank’s total priority sector lending.

a) 6
b) 4
c) 5
d) 10

3) CCS to COVID 19 affected customers is launched by our Bank. What is mean by CCS?
a) Canara Covid Support
b) Covid Credit Support
c) Canara Credit Support
d) Canara Customer Support

4) What is the MDR for Credit Cards issued under Platinum/Super Premium Variant?
a) 2.30% + GST
b) 1.5% + GST
c) 2.50 % + GST
d) 2.25 % + GST

5) The scheme of reimbursement of the expenses incurred towards purchase of Soft

Bag/Leather Bag, for Executives in Scale IV & above and also Trolley Bag for executives in
Scale VI and VII is extended once In ……………. Years.
a) 6
b) 4
c) 5
d) 3

6) What are the services charges for re –issuance of a fast tag?

a) INR 100 + GST
b) INR 150 + GST
c) INR 50 + GST
d) INR 165 + GST

CIBM, Manipal-Multiple Choice Questions – 2020 343

7) “Group Mediclaim for Canara Bank (Syndicate Bank)” is a health insurance policy
launched by
a) BAGIC
b) TAGIC
c) HDFC ERGO
d) NIICO

8) The purpose of the Board Approved Bancassurance Policy is to comply with the
regulations given
a) IRDAI/RBI
b) SEBI
c) GOI MOF
d) DFS

9) The rental ceiling for a Scale 1 officer in AREA III (All Other Centers ) i.e., Population of
Below 1 Lakh is
a) 6000
b) 4000
c) 5000
d) 6500

10) Canara Bank is having SLBC Convenorship for …………………states

a) Kerala and Karnataka
b) Kerala and Tamilnadu
c) Kerala and Telangana
d) Kerala and Andhra Pradesh

11) Canara Bank is having UTLBC convernorship for …………….

a) Pondicherry
b) Lakshadweep
c) Daman Diu
d) Chandigarh

12) Canara Bank is having Lead Bank responsibilities for ………….districts

a) 100
b) 75
c) 65
d) 60

CIBM, Manipal-Multiple Choice Questions – 2020 344

13) As per RBI instructions, Fire Audit of Currency Chest is required to be conducted once in
every …………. Years by the Govt. Fire Department and proper records maintained.
a) 3
b) 5
c) 2
d) 4

14) Remittance above Rs. 50 lakhs must be accompanied by …… Armed Guards

a) 3
b) 5
c) 2
d) 4

15. Insurance cover for cash in transit will be for an amount of Rs. …… crores.
a) 10
b) 75
c) 25
d) 50

16. Delegation of Powers for extending permission to engage private security guards/care
taker at E- Lounge lies with
a) DGM
b) AGM
c) GM
d) Circle Head

17. Which of the following accounts are not eligible for RTGS Facility?
a) Joint accounts where operation condition is other than severally.
b) Illiterate person/s and Minors , KYC Non compliant
c) Dormant , Frozen accounts, A/cs with Court orders and attachments
d) All the above

18. Which of the following is not in the list of new entities to be setup under the IBC 2016 ?
a. Insolvency and Bankruptcy Board of India (IBBI);
b. Insolvency Professional Agencies (IPA) & Insolvency Professionals (IP);
c. Information Utilities (IU).
d. NCLT

CIBM, Manipal-Multiple Choice Questions – 2020 345

19. The Hon’ble …………. is the adjudicating authority for the bankruptcy of partnerships and
individuals under IBC 2016.
a) Supreme court
b) High Court
c) DRT
d) NCLT

20. The Hon’ble …………. is the adjudicating authority for the bankruptcy of Corporates, LLPs
and other limited liability entities incorporated under any law in force under IBC 2016.
a) Supreme court
b) High Court
c) DRT
d) NCLT

21. All appeals against the orders of the Hon’ble NCLT will lie with the Hon’ble
a) Supreme court
b) High Court
c) DRT
d) National Company Law Appellate Tribunal (“NCLAT”).

22. All appeals against the orders of the Hon’ble DRT will lie with the Hon’ble
a) Supreme court
b) High Court
c) Debt Recovery Appellate Tribunal (“DRAT”)
d) National Company Law Appellate Tribunal (“NCLAT”).

23. The Hon’ble …………………. of India has the final Appellate Jurisdiction over the Hon’ble
NCLAT and DRAT
a) Supreme court
b) High Court
c) CCI
d) SEBI

24. …………….. shall have the authority to fix and review the Standard Cash Limit for the Bank
as a whole within a range of 0.25% to 0.35% of the aggregate domestic deposits
a) MC of the Board
b) MD & CEO
c) ED Overseeing GA Wing
d) CGM/GM Overseeing GA Wing

CIBM, Manipal-Multiple Choice Questions – 2020 346

25. ………………… shall be the competent authority for fixing Standard Cash Limit to the
branches within the Circle
a) Overseeing executive of P&E Section
b) DGM/GM overseeing IC Section
c) Overseeing executive of MIPD & PP Section
d) Circle Head

26. For intra-day overdraft (the day when the overdraft is extended, irrespective of the time
period for which the overdraft facility is enjoyed), interest shall be charged at relevant
RBI LAF Repo Rate + ……. basis points on clearing-related overdraft extended by Clearing
House managing banks for settling clearing obligations of member banks
a) 100
b) 75
c) 60
d) 50

27. If the overdraft extends to the following day (overnight and beyond), interest shall be
charged at relevant RBI LAF Repo Rate + ……. basis points on clearing-related overdraft
extended by Clearing House managing banks for settling clearing obligations of member
banks
a) 100
b) 300
c) 200
d) 250

28. Minimum Credit Card limit for add-on card facility is Rs. …………...
a) 25000
b) 3000
c) 2000
d) 2500

29. Minimum Credit Card limit for for all types of variants is Rs. …………...
a) 10000
b) 3000
c) 2000
d) 2500

CIBM, Manipal-Multiple Choice Questions – 2020 347

30. One Credit Card (with a maximum of …. add-on cards) shall be issued to a
customer based on the gross annual income of the individual.
a) 1
b) 3
c) 2
d) 4

31. For availing more than 2 Add-on cards, permission from …… shall be obtained.
a) RO Head
b) VLB Head
c) CO Head
d) MIPD & PP Section head

32. Add-on cards should be issued after ……….months of satisfactory transaction by the
Primary Cardholder.
a) 2
b) 3
c) 6
d) 4

33. Who are not eligible for issuance of Credit Card?

a) NRIs
b) Foreign Nationals residing in India having SB account here
c) Foreign tourists
d) New Customers

34. As per Non Credit Assets & Liabilities (Accounts) Elimination Policy powers were
delegated to MD & CEO – AC to write off /writeback entries upto INR ………… &………..
lakh respectively
a) 10 & 25
b) 20 &50
c) 10 & 15
d) 10 & 30

35. As per Non Credit Assets & Liabilities (Accounts) Elimination Policy powers were
delegated to AGM/DM (RO Head ) to write off /writeback entries upto INR …………
&……….. thousand respectively
a) 10 & 25
b) 20 &50
c) 10 & 15
d) 10 & 30

CIBM, Manipal-Multiple Choice Questions – 2020 348

36. External Due Diligence has to be conducted through Credit Rating Agencies, for MSME
Units who approach our Bank for the first time seeking credit facility requirement of
above Rs………….lakhs which are eligible to be covered under CGTMSE.
a) 10
b) 15
c) 20
d) 25

37. The Maximum loan quantum is restricted to Rs……… Crorefor In-Principle approvals
through the PSB Loans in 59 Minutes to MSME Sector in digital Platform
a) 5
b) 10
c) 2
d) 3

38. What is CMR score?

a) CIC MSME Rank
b) Corporate MSME Rank
c) CIBIL MSME Rank
d) Credit MSME Rank

39. CMR measures and predicts the risk of MSMEs on a rank scale of ……..
a) 1-10
b) 3-10
c) 1-9
d) 1-8

40. CMR is made applicable to Existing & New MSME loans with aggregate Loan quantum
(Present & Proposed) of above Rs…… lakhs upto Rs….. crores.
a) 10,5
b) 10,10
c) 5,10
d) 10,8

41. In Case of New customers seeking fresh exposure ,with the following CMRs need not
be considered
a) 7-10
b) 8-10
c) 9-10
d) 6-10

CIBM, Manipal-Multiple Choice Questions – 2020 349

42. For availing One Time Restructuring (OTR) scheme for advances ( standard assets) under
MSME Sector the total exposure as on 1st Jan 2020 should not exceed INR … cr
a) 15
b) 20
c) 25
d) 10

43. What is the permitted limit under CCS for MSME customers with limits up to INR 5 cr
(FBWC)?
a) 15% or 2 crore whichever is maximum
b) 35% or 2 crore whichever is maximum
c) 15% or 3 crore whichever is maximum
d) 35% or 1.5 crore whichever is less

44. What is the permitted limit under CCS for MSME customers with limits above INR 5 cr,
Corporates , Food and Agro processing , Poultry units etc having FBWC facilities?
a) 15% or 200 crore whichever is maximum
b) 10% or 150 crore whichever is lower
c) 15% or 3 crore whichever is maximum
d) 35% or 150 crore whichever is lower

45. CCS Repayment should be Within a maximum period of ….. months from the date of
availment including maximum six months holiday period & to be repaid in
monthly/Quarterly instalments and Interest to be serviced as and when due
a) 15
b) 20
c) 24
d) 10

46. The Board of Trustees of Credit Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE) had framed a Scheme for the purpose of providing guarantees in respect of
credit facilities extended by Lending Institutions to the borrowers classified as ……………….
Enterprises.
a) Micro
b) Small
c) Medium
d) MSE (Micro and Small)

CIBM, Manipal-Multiple Choice Questions – 2020 350

47. The Trust shall cover credit facilities (Fund based and/or Non fund based) extended by
Member Lending Institution(s) to a single eligible borrower in the Micro and Small
Enterprises sector for credit facility by way of term loan and/or working capital facilities
not exceeding INR …..lakh
a) 150
b) 200
c) 240
d) 100

48. The CGTMSE Coverage cap of Rs200 lakh is set the maximum guarantee coverage limit
of Rs200 lakh per borrower based on the ……………….credit facilities and the borrowers
can avail incremental credit facilities (i.e. to the extent of reduction in the outstanding
exposure limit) under Credit Guarantee Scheme of CGTMSE, subject to maximum cap of
Rs200 lakh.
a) Sanctioned
b) Outstanding
c) Balance as at Preceding March 31st
d) Outstanding facilities as on 30th Septembe

49. For availing the CGTMSE cover the lending institution should apply for guarantee cover
in respect of credit proposals sanctioned in the quarters April-June, July-September,
October-December and January-March prior to expiry of …………..
a) Following financial year
b) Following Quarter
c) Following Month after the completing of the quarter
d) Following Half year

50. Normally the Annual Guarantee fee (first time fee) shall be paid to the Trust by the
institution availing of the guarantee within …… days from the date of first disbursement
of credit facility (not applicable for Working capital) or …. days from the date of Demand
Advice (CGDAN) of guarantee fee whichever is later.
a) 30,50
b) 30,30
c) 30,90
d) 30,30

51. The Annual Guarantee fee (subsequent to first time fee) at specified rate on pro-rata
basis for the first and last year and in full for the intervening years would be generated by
2nd week of February every year. AGF so demanded would be paid by the MLIs on or
before ……..April each year or any other specified date by CGTMSE, of every year.
a) 10th b) 7th
c) 15th d) 20th

CIBM, Manipal-Multiple Choice Questions – 2020 351

52. Maximum Possible Recovery under GCTMSE for exposures ranging INR 50-200 lakh is
…….. % with a maximum of ……. Lakh
a) 75,150
b) 80,160
c) 75,100
d) 80,175

53. Maximum Possible Recovery under GCTMSE for exposures to Women entrepreneurs/
Units located in North East Region (incl. Sikkim) (other than credit facility up to Rs5 lakh
to micro enterprises) upto 50 lakh is …….. % with a maximum of ……. Lakh
a) 75,37.5
b) 80,40
c) 90,45
d) 80,35

54. Maximum Possible Recovery under GCTMSE for exposures to MSE Retail Trade from
Rs10 lakh up to Rs100 lakh is …….. % with a maximum of ……. Lakh
a) 75,37.5
b) 80,40
c) 50,50
d) 80,35

55. The MLIs are required to inform CGTMSE ,the date on which the account was classified
as NPA in a particular calendar quarter, by end of subsequent ……… through the e online
CGTMSE portal
a) Fortnight
b) Week
c) Quarter
d) Month

56. The lending institution may invoke the CGTMSE guarantee in respect of credit facility
within a maximum period of ……. years from the NPA date or lock-in period whichever is
later, if the NPA date is on or after 15/03/2018
a) 3
b) 2
c) 5
d) 1

CIBM, Manipal-Multiple Choice Questions – 2020 352

57. The lock-in period of ……… months from either the date of last disbursement of the loan
to the borrower or the guarantee start date in respect of credit facility to the borrower,
whichever is later, has lapsed
a) 13
b) 12
c) 15
d) 18

58. Claims of the respective MLI will be settled to the extent of ….. times of the fee including
recovery remitted during the previous financial year.
a) 3
b) 2
c) 5
d) 1

59. The Trust shall pay ……… per cent of the guaranteed amount on preferring of eligible
claim by the lending institution, within …. days, subject to the claim being otherwise
found in order and complete in all respects.
a) 75,30
b) 80,40
c) 50,50
d) 80,35

60. In full form of PM CARES Fund ( Prime Minister’s Citizen ………………………….. in Emergency
Situations Fund) A and R stands for
a) Ability and Response
b) Agility and Response
c) Assistance and Relief
d) Assistance and Response

61. Our Traditional Insurance Policies viz., Bankers Indemnity policy and Master / Assets
Policy for FY 2020-21 is renewed with…………………... The Policy is covered for the period
from 1stApril 2020 to 31stMarch 2021.
a) M/s BAGIC
b) M/s The Oriental Insurance Company Limited
c) M/s TAGIC
d) M/s HDFC Ergo

CIBM, Manipal-Multiple Choice Questions – 2020 353

62. Credit Guarantee Fund for Micro Units (CGFMU) is the Trust Fund set up by Government
of India, managed by NCGTC as a trustee, with the purpose of guaranteeing payment
against default in Micro Loans extended to eligible borrowers by Banks under ……..
a) PMMY
b) PMEGP
c) PMAY
d) Standup India

63. Credit Guarantee Scheme for Stand Up India (CGSSI), is managed by NCGTC to cover
loans granted under Stand Up India scheme. The Fund shall cover assistance of over
Rs……. Lakhs and upto Rs…… Lakhs inclusive of working capital extended under Stand Up
India scheme to a single eligible borrower without obtaining any collateral or third party
guarantee.
a) 10,100
b) 10,50
c) 25,50
d) 5,25

64.To be eligible for guarantee cover, the Rate of Interest charged on SHISHU category
loans, i.e., loans upto Rs.50,000/- (Rs. Fifty thousand only) should not exceed ………% p.a.
a) 12
b) 10
c) 8
d) 9

65. The guarantee is in the nature of “First Loss Portfolio Guarantee” wherein first loss to
the extent of …..% of the crystallized portfolio of the Bank shall be borne by the Bank and
will be excluded for the claim. The amount in default over and above said amount will be
settled by the fund to the extent of ….% on pro-rata basis, subject to submission of an
Auditor’s Certificate confirming eligible claim amount.
a) 10,100
b) 10,50
c) 2,50
d) 5,50

CIBM, Manipal-Multiple Choice Questions – 2020 354

66. Under “Credit Guarantee Scheme for Stand Up India (CGSSI)”, Eligible borrower means
Scheduled Caste (SC), Scheduled Tribe (ST) and Women Entrepreneurs, above …… years
of age, setting up green field enterprises in non-farm sector. In case of non-individual
enterprises, minimum ….% of the shareholding and controlling stake should be held by
either SC/ST and/or Women Entrepreneur/s.
a) 18,49
b) 21,51
c) 18,51
d) 18,60

67. The CGSSI guarantee fee consists of a standard base rate of …….% plus risk premium
based on the NPA percentage and claim payout ratio in the guaranteed portfolio
a) 0.85
b) 0.75
c) 0.65
d) 0.55

68. To be eligible for CGSSI guarantee cover, the Rate of Interest charged should be the
lowest applicable rate for the category (as per rating) and should not, in any case, be
more than ……..% over the MCLR plus Tenor Premium, if any, for the loan.
a) 0.85
b) 1.75
c) 3.00
d) 3.55

69. The fund under CGSSI Cover shall provide guarantee cover to the extent of …..% of the
amount in default for credit facility above Rs.10 Lakhs and upto Rs.50 Lakhs, subject to a
maximum of Rs…….. Lakhs.
a) 75,30
b) 80,40
c) 50,50
d) 80,35

70.The fund under CGSSI cover will pay, for credit facility above Rs.50 lakhs and upto Rs.100
Lakhs , Rs. 40 Lakhs plus ……% of the balance amount in default above Rs.50 Lakhs
subject to overall ceiling of Rs…….. Lakhs
a) 75,75
b) 80,80
c) 50,65
d) 80,75

CIBM, Manipal-Multiple Choice Questions – 2020 355

71. The Credit Scoring Model to decide about the eligibility for availing finance under
MSME sector which is being implemented since 2014 in our bank is applicable for Micro,
Small and Medium enterprises applying for an aggregate loan amount up to Rs……..
crores from our Bank for the first time.
a) 1
b) 2
c) 3
d) 4

72. In the MSME Credit scoring model Out of the maximum marks of 100, …. marks are
earmarked for behavioral parameters, … marks each for management and business
parameters and … marks for financial parameters.
a) 30,25,20
b) 30,20,20
c) 30,15,40
d) 40,15,30

73. Any person/unit scoring ………% of the marks under the applicable parameters in MSME
Credit Scoring model shall become eligible for finance and who scores below that will not
be entertained
a) 35
b) 60
c) 45
d) 55

74. Vide Compensation Policy of the bank In case of delay in crediting the beneficiary
customer‟s account or in returning the non-credited amount to the remitter in case of
NEFT, Bank shall pay penal interest. Under the extant guidelines, bank is required to pay
penal interest at the current RBI LAF Repo rate plus ………percent for the period of delay /
till the date of refund as the case may be to the affected customers suo moto, without
waiting for claim from customers.
a) 1
b) 2
c) 3
d) 4

CIBM, Manipal-Multiple Choice Questions – 2020 356

75. Vide Compensation Policy of the Bank Time frame for collection of cheques drawn on
State Capitals / major cities/ other locations to be 7/10/14 days respectively. If there is
any delay in collection beyond this period, the interest shall be the interest rate on
……………… on the corresponding maturity.
a) LAF
b) REPO
c) CBL
d) Fixed Deposit rate for the corresponding maturity

76. As per the POLICY ON DISHONOUR OF INWARD CHEQUES / DISHONOUR OF ECS

MANDATES FOR THE REASON INSUFFICIENT FUNDS FOR THE YEAR 2020-2021, dishonour
of a cheque for the reason insufficient funds of value less than Rs. 1 Crore, on
……occasions during the financial year will attract stoppage of cheque book facility and
closure of account.
a) 1
b) 2
c) 6
d) 4

77. As per the POLICY ON DISHONOUR OF INWARD CHEQUES / DISHONOUR OF ECS

MANDATES FOR THE REASON INSUFFICIENT FUNDS FOR THE YEAR 2020-2021, Bank will
be constrained to close the account, if ECS mandates are dishonoured for the reason
insufficient funds on …….. occasions during the financial year.
a) 1
b) 2
c) 6
d) 4

78. As per the POLICY ON DISHONOUR OF INWARD CHEQUES / DISHONOUR OF ECS

MANDATES FOR THE REASON INSUFFICIENT FUNDS FOR THE YEAR 2020-2021, In case of
Dishonour of a cheque for the reason insufficient funds valuing Rs.1 crore & above and
cheques favouring Stock Exchanges irrespective of the amount, on ………. occasions
during the financial year no cheque book would be issued and Bank may consider closure
of Current Accounts at our discretion.
a) 1
b) 2
c) 6
d) 4

CIBM, Manipal-Multiple Choice Questions – 2020 357

79. As per extant policy guidelines Customers not liable for amounts lost in fraudulent/
unauthorised transactions where default not attributed to the customers, if reported to
the Bank within …… working days.
a) 1
b) 3
c) 6
d) 4

80. Under EBT ( Electronic Banking Transaction ) what is meant by CNP?

a) Customer Not Present
b) Customer Network Protocol
c) Card Not Present
d) Card Network Protocol

81. In cases where the responsibility for the un-authorized Electronic Banking Transaction
lies neither with the bank nor with the customer, but lies elsewhere in the system and
when there is a delay (of 4 to 7 working days after receiving the communication from the
bank) on the part of the customer in notifying the bank of such a transaction, the per
transaction liability of the customer shall be limited to the transaction value or…….in case
of SB acs other than BSBD , Credit cards up to 5 Lakh limit other CASA acs with annual
average balance (365 prior to the date of incidence ) of INR 25 lakh
a) 10000
b) 30000
c) 6000
d) 4000

82. In cases where the responsibility for the un-authorized Electronic Banking Transaction
lies neither with the bank nor with the customer, but lies elsewhere in the system and
when there is a delay (of 4 to 7 working days after receiving the communication from the
bank) on the part of the customer in notifying the bank of such a transaction, the per
transaction liability of the customer shall be limited to the transaction value or…….in case
of accounts other than SB acs other than BSBD , Credit cards up to 5 Lakh limit other
CASA acs with annual average balance (365 prior to the date of incidence ) of INR 25 lakh
a) 10000
b) 25000
c) 6000
d) 4000

CIBM, Manipal-Multiple Choice Questions – 2020 358

83. Customers can lodge their complaints directly to Branch-in-charge and it will be the
responsibility of the Branch-in-charge to resolve the complaint within …… days from the
date of receipt.
a) 1
b) 3
c) 6
d) 7

84.Under CPGRS package If the complaint remains unattended at RO level, on ….th day of
lodging of the complaint, the complaint itself would flow to CO for necessary redressal
and closure.
a) 11
b) 13
c) 12
d) 14

85. The Customer Rights Policy enshrines basic rights of the customers of the banks
regulated by the Reserve Bank of India. Which of the following is not a Right under the
same?
a) Right to Fair treatment, transparency ,Fair and Honest Dealing
b) Right to Suitability and Privacy
c) Right to Grievance Redress and Compensation
d) Right for extension of Credit Facility

86. Rate of Interest for Educational Loans above INR 7.50 lakh is liked to
a) RLLR
b) MCLR
c) Base Rate
d) BPLR

87. With effect from 01.04.2020, Pigmy Deposit Scheme of erstwhile Syndicate Bank and
New Nitya Nidhi Deposit (NNND) Scheme of Canara Bank are merged and renamed as
…………. Scheme.
a) NND (Nitya Nidhi Deposit)
b) FD
c) KD
d) RD

CIBM, Manipal-Multiple Choice Questions – 2020 359

88.Under revised agricultural financing norms Chief Managers and above authorities in
Branches, Divisional Managers / Assistant General Manager at Regional Office/ Circle Office
can permit financing beyond ….. km considering the size of the advance, cluster of loan
proposals, capacity of the branch to service the account, etc
a) 16
b) 30
c) 12
d) 40

89. Margin for Agricultural Loans up to INR 2 lakh is

a) 16
b) 30
c) 12
d) NIL

90. Gold loan release charges to the tune ofINR ……….per loan to collected at the time of
closure of loan after 3 month from date of Sanction/Disbursement, irrespective of loan
amount
a) 200
b) 100
c) 50
d) 150

Answer Key Circular 201/2020 to 250/2020

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
b b c c d a a a d a b d c c a
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
d d d c d D c a b d a b a a d
31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
a c c a a A a c a b b c d b c
46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
d b b b b C a b c c a d b a c
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75
b a a a d C a c b c b a b b d
76 77 78 79 80 81 82 83 84 85 86 87 88 89 90
c d d b c a B d c d a a b d b

CIBM, Manipal-Multiple Choice Questions – 2020 360

 Circular based MCQ (251/2020 to 300/2020)
1. Senior Citizens are eligible for how much additional ROI on Canara Tax saver?
a. 0.5 *
b. 0.25
c. 0.60
d. 1.00

2. Employees/Ex-employees are eligible for how much additional ROI on Canara Tax
saver?
a. 0.5
b. 1.0 *
c. 1.50
d. 0.75

3. The additional interest shall be provided to a Senior Citizen only if

a. He/she is 60 years on the date of opening of the term deposit.

b. He/she is 62 years on the date of opening of the term deposit.
c. He/she is 60 years on the date of applying for opening of the term deposit.
d. He/she is 62 years on the date of applying for opening of the term deposit.

4. Which among the following is not a Method of recovery of NPAs

a. Settlement through compromise
b. Sale of NPAs to Asset Reconstruction Companies
c. Enforcement of Securities as per the provisions of SARFAESI Act.
d. Threatening over phone

5. Can further direct / indirect finance be made available to the parties

where accounts have been settled / closed under OTS /compromise by
extending concessions.
a. No such requests should not be entertained
b. Yes in case of non-wilful defaulters, fresh credit facilities may be considered as per
the guidelines
c. Yes such requests should always be considered
d. It is the discretion of Branch Head

6. Compensation to the legal heirs in case of unfortunate death of any employee due
to COVID 19 is:
a. 10 Lakhs
b. 20 Lakhs
c. 30Lakhs
d. 40Lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 361

7. Which among the following is not an Officially Valid Document for KYC?
a. Passport
b. DL
c. Proof of possession of Aadhaar number*
d. Ration Card

8. In case, Officially Valid Documents (OVDs) furnished by the customer does not
contain updated address then which document can be obtained for that
a. Utility bill which is not more than two months old
b. Property or Municipal tax receipt
c. Pension or family pension payment orders (PPOs)
d. PAN Card

9.Which among the following is not a valid document for opening a company account
a. Certificate of incorporation
b. Memorandum and Articles of Association
c. CIN Number
d. Adhaar Card

10. Waiver of the Service charge for ECS debit Return were effected from
a. 31.07.2020
b. 30.06.2020 *
c. 31.08.2020
d. 30.09.2020

11. OTS stands for

a. One Time structuring
b. One time service
c. One Time settlement
d. One time Shiping

12. Which is not a way of creating charge

a. Mortgage
b. Hypothecate
c. Pledge
d. Siphon

CIBM, Manipal-Multiple Choice Questions – 2020 362

13. Eligibility to proceed under SARFAESI Act, choose the one which is not correct?
a. The Account should be NPA as per RBI guidelines
b. Amount claimable from the borrower (including the accrued interest) should be not
less than Rs 1 Lakh.
c. The amount due should be more than 25 % of the Principal Amount and interest
there on.
d.The amount due should be more than 20 % of the Principal Amount and interest
there on.

14. Demand notice is sent as per section

a. 13 (1)
b. 13 (2)
c. 13(3)
d. 13(4)

15. Demand notice is served for maximum how many days?

a. 30 Days
b. 45 Days
c. 60 Days
d. 80 Days

16. Demand notice is served to whom?

a. Only borrower
b. Only guarantor
c. Only third party
d. All the parties mentioned

17. Symbolic possession notice is sent under which section

a. 13 (1)
b. 13(2)
c. 13(3)
d. 13(4)

18. Which among the following is not one of the mode of sending demand notice?
a. Hand delivery against acknowledgement
b. By registered post acknowledgement due
c. By speed post
d. By whatsapp

CIBM, Manipal-Multiple Choice Questions – 2020 363

19. If the borrower avoids demand notice, the service of notice shall be effected by,
which option is not correct
a. affixing a copy of the demand notice on the outer door or some other conspicuous
part of the house or building
b. by publishing the contents of the demand notice in two leading newspapers, one in
vernacular language
c. by publishing the contents of the demand notice in three leading newspapers, one
in vernacular language
d. Branches may take photographs/ video graphs of the properties showing that
demand notice is affixed to the properties

20. REPRESENTATION OR OBJECTIONS TO DEMAND NOTICE from Bank’s side must be

communicated to the party well within how many days
a. 5 days
b. 10 days
c. 15 days
d. 20 days

21. If the borrower fails to discharge his liability in full within 60 days from the date of
receipt of demand notice, the recourse available with the Bank are
a. Take possession of the Secured Assets of the Borrower
b. Take over the management of the business of the borrower
c. Appoint any person, to manage the secured assets the possession of which has
been taken over by the secured creditor
d. Any one of the above mentioned actions can be taken

22. If the movable secured assets are in the possession of borrower, the Authorized
Officer has to take the possession of such properties in the presence of how many
witnesses
a. 1
b. 2
c. 3
d. 4

23. Detailed terms and conditions of the sale of movable secured assets must include,
choose the one which is not correct.
a. Details about the borrower and the secured creditor;
b. Description of movable secured assets to be sold with identification marks or
numbers, if any on them
c. Reserve Price, if any and the time and manner of payment
d.Total exposure of the Bank under that particular scheme

CIBM, Manipal-Multiple Choice Questions – 2020 364

24. Maximum time given to the borrower under sale notice
a. 15 days
b. 25 days
c. 30days
d. 60 days

25. To extend credit facilities to SC / STs in commemoration of birth anniversary of

DR. B. R. Ambedkar, our Bank observed “April and May 2020 as SC/ST” months. The
Campaign Period to observe SC/ST Month/s was as under:
a. 01.04.2020 to 31.05.2020
b. 01.04.2020 to 30.04.2020
c. 01.05.2020 to 31.05.2020
d.15.04.2020 to 14.05.2020

26. Disputes received from the Debit Cardholders in respect of failed ATM Cash
transactions, maximum time allowed for lodging the claim with other bank is __
days from the date of transaction.
a. 30
b. 45
c. 60
d. 90

27. In case the claim of our customer for ATM Cash transaction is rejected and
customer is not satisfied with resolution provided by the other bank, there is a
provision to take up with other bank for Pre-Arbitration. The claim under pre
arbitration can be lodged in CCR within __ days from the date of original rejection
of claim.
a. 30
b. 45
c. 60
d. 90

CIBM, Manipal-Multiple Choice Questions – 2020 365

28. ATM Cash transaction claim under lodged under pre arbitration in CCR package,
other bank as per NPCI guidelines has to provide resolution with __ days from the
date of lodging the claim by DBS wing, HO.
a. 30
b. 13
c. 15
d. 17

29. With reference to ATM Cash Transaction what are “Acquiry Transactions”?
a. Our Bank Customers transacting in other ATMs
b. Other Bank Customers transacting in our ATMs
c. Other Bank Customers transacting in white board ATMs
d. Our Bank Customers transacting in our ATMs

30. In those ATM cases where the representment is accepted by the Issuer member,
Customers, through their Issuer member are eligible to receive the penalty amount
@ __, from the date of chargeback until the date of pre arbitration/arbitration
acceptance by the Acquirer member, provided the chargeback is raised within __
days from the date of transaction.
a. Rs.100/day, 30
b. Rs.100/week, 30
c. Rs.100/day, 60
d. Penalty would not be applicable

31. If Issuer/Acquirer banks fail to raise the ATM dispute/adjustment within the
prescribed time limit, the same can be initiated on “_” basis through DMS.
a. No show
b. Bounce back
c. Good faith
d. Benefit of doubt

32. Revised Social Media Policy of the Bank for the Financial Year 2020-21 consists of
three parts i.e Part A, Part B and Part C. Which of the following statement is true
with regard to these 3 parts?
a. Part A is for customers, stake holders and general public.
b. Part B is for customers, stake holders and general public.
c. Part C is for customers, stake holders and general public.
d. Part A and Part B are restricted for internal circulation only.

CIBM, Manipal-Multiple Choice Questions – 2020 366

33. Currently the five most popular Social Media networks are Facebook, Twitter,
YouTube, Instagram and WhatsApp and Canara Bank has its presence on:
a. Twitter, Facebook, Instagram and YouTube
b. Facebook, Instagram, YouTube and WhatsApp
c. Facebook, Instagram and Twitter
d. Twitter, Facebook, Instagram, YouTube and WhatsApp

34. As per our Bank’s Social Media Policy, which of the following contents can not be
posted on our Bank’s Social Media Sites?
a. News – Covering the Quarterly Results, Branches / ATMs opened, financial
inclusions, Dividends declared, etc.
b. Banks’ future Business plans, new product & services launch including digital
products etc.
c. Bank’s HR Polices with reference to recruitment, promotions and placement of
employees.
d. Write up on the Bank covering its History and Profile.

35. Which of the below mentioned policy does not form the part of our Bank’s “Web
Communication Policy” version 1.0 for the year 2020-2021?
a. Copy right policy
b. Privacy policy
c. Social Media policy
d. Content Archival Policy

36. For fraud of Rs.1 lakh and above but below Rs.3 Crore involving outsiders and
bank staff the complaint is to be lodged with the State CID/ Economic Offences
Wing of the State concerned by whom?
a. Branch Head
b. Executive not below the rank of CM/DM
c. RO Head / Executive not below the rank of AGM
d. CO Head / Executive not below the rank of DGM

CIBM, Manipal-Multiple Choice Questions – 2020 367

37. As per IS Audit Policy 2020-2021, IT systems are divided into high, moderate,
normal and low criticality systems based on risk matrix. What is the frequency of
System Audit for High Criticality Systems?
a. 3 months
b. 6 months
c. 9 months
d. 12 months

38. Under Canara Tax Saver Scheme, the additional interest rate offered to Ex-
employee Senior Citizens over and above the rate offered for General Public is:
a. 1% only
b. 0.5% only
c. 1.5% only
d. No additional interest rate is offered

39. In case, Officially Valid Documents (OVDs) furnished by the customer does not
contain updated address, which of the following documents or the equivalent e-
documents there of shall not be deemed to the OVDs for the limited purpose of
proof of address?
a. Utility bill which is not more than six months old of any service provide
b. Property or Municipal tax receipt
c. Pension or family pension payment orders (PPOs) issued to retired employees by
Government Department or Public Sector Undertaking
d. Letter of allotment of accommodation from employer issued by State Government
or Central Government Departments

40. The Authorized Officer may utilize the service of SARFAESI Agents empanelled for
SARFAESI in taking possession of the movable securities. In the case of Doubtful
and Loss Accounts with book liability exceeding Rs.
a. 10 Lakhs
b. 20 Lakhs
c. 50 Lakhs
d. 30 Lakhs

CIBM, Manipal-Multiple Choice Questions – 2020 368

41. As per which Section of SARFAESI Act, the Branch shall make an application to
Chief Metropolitan Magistrate (CMM) or District Magistrate (DM) as the case may
be for taking possession
a. Section 12
b. Section 14
c. Section 13
d. Section 15

42. CMM or DM is bound to take possession of secured assets and any documents
relating to such assets and hand over such assets and documents to the Bank
within a period of how many days from the date of application.
a. 15 days
b. 30 days
c. 45 days
d. 60 days

43. On or immediately after taking actual possession, the Bank has to publish
possession notice within how many days of taking possession?
a. 5 days
b. 10 days
c. 7 days
d. 15 days

44. The reserve price of a property fixed under SARFAESI should not be
a. lesser than 90% of the Market Value of the property.
b. lesser than 80% of the Market Value of the property.
c. lesser than 70% of the Market Value of the property.
d. lesser than 75% of the Market Value of the property.

45. In the event of failure of auction held for the first time, the reduction in RP for
subsequent auction should not be more than how much of the RP fixed earlier
a. 15 %
b. 20 %
c. 10 %*
d. 5 %

46. Purchase of non banking falls under which Section of SARFAESI Act
a. 13 (5) A
b. 13(5)B
c. 13(5)C
d. 13(5)D

CIBM, Manipal-Multiple Choice Questions – 2020 369

47. Branches shall arrange to issue SARFAESI Notice within how many days of account
becoming NPA.
a. 3 days
b. 7 days
c. 15 days
d. 5 days

48. Branches should submit NF 607 recommending to initiation of recovery/ legal

action like suit filing, waiver of suit filing, SARFAESI Action, staff accountability etc.,
and transfer of CR files to Recovery Section, within how many days of account
becoming NPA to the respected authority
a. 60 days
b. 90 days
c. 45 days
d. 30 days

49. Security interest created in favour of the Bank should be duly registered with
a. CIBIL
b. CERSAI
c. ICRA
d. CRISIL

50. Timing of RTGS for Settlement at RBI.

a. 7am to 6 pm
b. 7am to 5 pm
c. 8am to 6pm
d. 6am to 6pm

51. Due to Covid-19 and Lockdown GOI gave relaxations for Deposit of single
transaction for SSA & PPF for fy 2019-20 up to which date?
a) Deposited before 30/06/2020
b) Deposited before 15/06/2020
c) Deposited before 30/04/2020
d) Deposited before 31/05/2020

52. Is PPF Scheme Qualifies for EEE Category and what is the full form EEE?
a) NO, Exempt, Exempt, Exempt
b) YES, Exempt, Exempt, Exempt
c) YES, Exchange Earner Exemption
d) NA, Euro Exchange Exclusive

CIBM, Manipal-Multiple Choice Questions – 2020 370

53. Public Provident Fund Scheme (PPF) Notified by GOI in which Year.
a) 1972
b) 1978
c) 1968
d) 1982

54. Sukanya Samriddhi Yoojna (SSA), what is minimum and maximum Deposit Amount
a) 1000 min, max.1.5Lacs
b) 250 min., max.1.5Lacs
c) 500 min., max.1.5Lacs
d) 250 min., max1.00lacks

55. Full form of CGFSSD

a) Credit Guarantee Fund Scheme for Special Development Loan
b) Credit Guarantee Fund Scheme for Skill Development Loan
c) Credit Guarantee Fund Scheme for Silk Development Loan
d) Credit Guarantee Fund Scheme for Special Drive for Loan

56. Full form of CGFSEL

a) Credit Guarantee Fund Scheme for Educational Loan
b) Credit Guarantee Fund Scheme for External Loan
c) Credit Guarantee Fund Scheme for Entertainments Loan
d) Credit Guarantee Fund Scheme for Environmental Loan

57. Security in KCC (aggregate exposure including other Agricultural Loans) up to

2.00lacks
a) Hypothecation of crops/Assets purchased.
b) Mortgage of Personal Assets
c) Mortgage of Land
d) Personal Guarantee

58. Security in KCC (aggregate exposure including other Agricultural Loans) Above
2.00lacks
a) Hypothecation of crops/Assets purchased.
b) Hypothecation of crops/Assets purchased +Mortgage of Landed properties
c) Hypothecation of crops/Assets purchased +Mortgage of Landed properties or
Collateral Security of Gold Jewellery with 100% Security value
d) Personal Guarantee

CIBM, Manipal-Multiple Choice Questions – 2020 371

59. Loans upto __lacks will be eligible for interest subvention /incentive benefits
provided all other Guidelines are adhered to in KCC scheme
a) 2.00lacks
b) 2.5lacks
c) 3.00lacks
d) 1.5lacks

60. What are Canara2 (E-Syndicate) Product Codes for KCCS – Short duration and KCCS
– Long duration
a) Short duration – 840 , Long duration – 895
b) Short duration – 801 , Long duration - 801
c) Short duration – 890 , Long duration - 836
d) Short duration – 695 , Long duration - 895

61. Full Form of Crop insurance 1) PMFBY 2) RWBCIS

a) 1) Pradhan Mantri Fasal Bima Yojna 2) Restructed Weather Based Crop Insurance
Scheme
b) 1) Pradhan Mantri Farmers Bima Yojna 2) Renewed Weather Based Crop Insurance
Scheme
c) 1) Pradhan Mantri Fasli Bima Yojna 2) Renewable Water Based Crop Insurance
Scheme
d) 1) Prime Minister Fasal Bima Yojna 2) Rabi Weather Based Crop Insurance Scheme

62. Who are eligible for Pradhan Mantri Kisan Samman Nidhi Yojna (PM-Kisan Yojana)
and what is minimum income support?
a) Farmers and minimum income support Rs. 8000/- p.m.
b) Small & Marginal Farmers and minimum income support Rs. 6000/- p.a.
c) Marginal Farmers and minimum income support Rs. 2000/- every 4 months
d) All Farmers and minimum income support Rs. 6000/- every 4 months

63. What is the rate at which TDS is to be deducted for “Rent” under Section (u/s 194-
I) and exceeding what amount P.A
a) 2% and 1,80,000
b) 1% and 2,40,000
c) 10% and 2,40,000
d) 10% and 2,80,000

CIBM, Manipal-Multiple Choice Questions – 2020 372

64. Full Form of IFSC and how many digit it contains.
a) Indian Financial system Character and 11 alpha codes
b) Indian Financial system Code and 11 alpha – numeric codes
c) Indian Financial system Code and 10 alpha – numeric codes
d) Indian Financial system Code and 12 alpha – numeric codes

65. Full Form of MICR and how many digit it contains.

a) Magnetic ink character Reorganizer 8 digits
b) Magnetic ink character Recognition 9 digits that identifies Bank & branch
c) Magnetic ink character Recognition 8 digits that identifies Bank & branch
d) Magnetic ink character Recognition 8 digits that identifies Bank & ZO

66. Full Form of FATCA.

a) Foreign Account Tax Compliance Act.
b) Foreign Account Taxing Compliance Act.
c) Foreign Account Travelling Compliance Act.
d) Fixed Account Tax Compensation Act

67. Meaning of Active duty for attending Office during Lockdown Period.
a) Employee Present physically and shall sign attendance register.
b) Employee Present Physically and shall do Bio-metric attendance.
c) Work – from – Home
d) None of the above.

68. Full Form of CGTMSE

a) Credit Guarantee Trust Micro, Small and Enterprise
b) Credit Guarantee Fund Trust for Micro& Small Enterprises
c) Credit Guarantee towards Micro Small entrepreneur
d) Credit Govrenment Trust Fund

69. CGTMSE is set up by:

a) Government of India
b) SIDBI
c) RBI
d) Both a & b above

CIBM, Manipal-Multiple Choice Questions – 2020 373

70. Sovereign Gold Bond Scheme 2020-21 – Minimum & Maximum investment in the
Bonds per fiscal for individual is minimum ___ and maximum ___.
a) 3 Gram & 1 KG.
b) 5 Gram & 2 KG.
c) 7 Gram & 3 KG.
d) 1 Gram & 4 kG.

71. The Sovereign Gold Bond Scheme 2020-21 , The Bond shall bear Interest rate at?
a) 2.5%
b) 3.5%
c) 2.5% (fixed rate) p.a. payable semi-annually on the nominal Value
d) 3.5% (fixed rate) p.a. payable semi-annually on the nominal Value

72. What does 4th Letter in the PAN stands for?

a) The fourth character represents the Name of the PAN holder
b) The fourth character represents the Status of the PAN holder
c) C stands for company, P for Person, H for HUF, F for Firm, A for Association etc.
d) Both b and c above

73. Full form of UIDAI

a) Unique Identification Authorizing of India
b) Unique Identification Authority of India
c) Unquoted ID number
d) Unique Identifier Authorizing of India

74. How many digits are there in Aadhaar Number

a) 11
b) 12 alpha
c) 12 all Numeric
d) 11 all Numeric

75. How many digits are there in GST number and what does First Two digit
Represent.
a) 14, Union code
b) 15, State code
c) 13, Territory
d) 15, State Capital Code

CIBM, Manipal-Multiple Choice Questions – 2020 374

76. How many digits are there in Canara Bank Debit Card and position of DP code in
the Card Number.
a) 16 Digit and 4 to 7 position
b) 16 digit and 7 to 10 position
c) 14 digit and 5 to 8 position
d) 16 digit and 13 to 16 position

77. Full for of CVV as printed at the Back side of Debit/Credit Card.
a) Card Verify voucher
b) Card Verify Value
c) Card Verification Value
d) Combined Value Voucher

78. How many digit Transaction Verification Pin is there in Mobile Banking?
a) 5 digit
b) 4 digit
c) 7 digit
d) 6 digit

79. Full form of MMID and how many digit Code is generated?
a) Mobile Money Instant , 5 digit
b) Mobile Money Identifier , 7 digit
c) Mail Money Instruction , 3 digit
d) Mobile Money Instruction , 7 digit

80. What is the Full form of IOM – DMS in our Bank.

a) Inter Office Memorandum – Desktop Management System
b) Inter Office Memorandum – Document Management System
c) Inbuilt Operation Management – Document Mailing System
d) Inter Office Memo – Document mail merge system.

CIBM, Manipal-Multiple Choice Questions – 2020 375

81. What is the eligibility for providing CCS Loan to MSME units, Corporate/Business
Entities/ Service Units/ Food & Agro Processing Units and Poultry Units?
a) All standard & NPA accounts under the given category are eligible
b) All standard accounts including SMA0, SMA1 & SMA2 as on date of sanction
irrespective of internal rating are eligible
c) All standard accounts including SMA0 and SMA1 as on date of sanction irrespective
of internal rating are eligible (SMA2 are not eligible)
d) All standard accounts including SMA1 and SMA2 as on date of sanction irrespective
of internal rating are eligible (SMA0 are not eligible)

82.Which of the given statements is not correct with respect to CCS Scheme to
MSMEs?
a) Disbursements can be done in a single tranche or maximum three tranches.
b) There shall be no margin for CCS
c) There shall be a pre-payment penalty of 0.10% of the outstanding amount.
d) Loan shall be repayable in 18 monthly installments after a moratorium of 6 months
from the date of first disbursement.

83.What is the maximum quantum of loan to be given to MSME Borrowers under CCS
Scheme?
a) Maximum of 20% of existing Fund based Working Capital limits or Rs. 150 Crores,
whichever is lower
b) Maximum of 10% of existing Fund based Working Capital limits or Rs. 150 Crores,
whichever is lower
c) Maximum of 20% of existing Fund based Working Capital limits or Rs. 150 Crores,
whichever is higher
d) Maximum of 10% of existing Fund based Working Capital limits or Rs. 150 Crores,
whichever is higher

84. What is the repayment period for WCDL given under CCS Scheme?
a) 24 months including 6 months moratorium
b) 24 months excluding 6 months moratorium
c) 18 months including 6 months moratorium
d) 36 months including 6 months moratorium

CIBM, Manipal-Multiple Choice Questions – 2020 376

85. What is the benefit given by GOI on online purchase of Sovereign Gold Bond?
a) The date of the scheme shall be extended for those who apply online
b) A discount of Rs. 50/- per gram less than the nominal value is permitted to those
investors who apply online.
c) An additional interest of one month shall be given to those applying online
d) A discount of Rs. 100/- per gram less than the nominal value is permitted to those
investors who apply online.

86. The list of E-mail IDs of all our employees is available on Cannet under which of
the given links?
a) Telephone Directory
b) Staff Details
c) HRMS User Manuals
d) Canara Sanwaad

87. What is the full form of DAY-NRLM?

a) Deendayal Antyodaya Yojana–National Rural Livelihoods Mission
b) Day National Rural Livelihoods Mission
c) Deendayal Antyodaya Yojana - National Rashtriya Livelihoods Mission
d) Deenbandhu Antyodaya Yojana - National Rural Livelihoods Mission

88. For which of the given posts, compassionate appointments can be made?
a) Clerical & Officers
b) Officers
c) Clerical & Sub- Staff
d) Sub-staff only

89. Which of the following is not true with regard to Staff Welfare Fund?
a) Loan Facility is available
b) The membership is mandatory
c) Free scholarship to children of deceased employee
d) All confirmed staff members of Canara Bank

CIBM, Manipal-Multiple Choice Questions – 2020 377

90. What is the time frame for providing Working Capital reassessment upto Rs. 5
Crore for existing borrowers in the context of Covid – 19 pandemic?
a) Within 3 to 6 working days
b) Within 6 to 9 working days
c) Within 9 to 12 working days
d) Within 12 to 15 working days

91. Which of the following is one of the functions of AIC?

a) Undertake viability studies, rehabilitation packages for sick units, follow-up
consultancy etc. in Agricultural sector.
b) To recover the NPA Accounts under Agriculture.
c) To grant loans to Agriculture Sector
d) Undertake training for farmers for crop cultivation

92. What is the project cost for new customers for which the project can be taken up
with AIC for Appraisal/Formulation/Vetting:
a) Above Rs. 100 Lakhs
b) Above Rs. 150 Lakhs
c) Above Rs. 200 Lakhs
d) Above Rs. 300 Lakhs

93. Viability study/Restructuring package for sick units shall be conducted by AIC in
respect of Agriculture accounts with outstanding of:
a) Rs. 150 Lakhs and above
b) Rs. 50 Lakhs and above
c) Rs. 200 Lakhs and above
d) Rs 100 lakhs and above

94. What is the full form of AIC?

a) Agriculture Internal Centre
b) Agriculture Information Centre
c) Agriculture Innovation Centre
d) Agriculture Interim Centre

CIBM, Manipal-Multiple Choice Questions – 2020 378

95. What is the maximum time period for providing Financial assistance to SHG
borrowers under Covid 19 Emergency Credit Line?
a) Within 3 working days
b) Within 4 working days
c) Within 5 working days
d) Within 6 working days

96. Which is not one of the modes of submission of loan request by SHGs for Covid 19
Emergency Credit Line?
a) Physical Application to the Base Branch
b) E-mail to the base branch
c) SMS to the base branch
d) Through Business Correspondents

97. Holiday Home facility at which city has been provided as a benefit under the Staff
Welfare Fund?
a) Bengaluru
b) Manipal
c) Delhi
d) Mumbai

98. Which of the case is not considered for compassionate appointment of dependent
family member of a permanent employee of our Bank?
a) Where an employee dies while in service
b) Has taken VRS after the age of 55
c) Has retired on medical grounds due to incapacitation before reaching the age of 55
years.
d) Has been missing and left over service of more than two years.

99. Official E mail IDs of staff will be deleted if it remains un-used for a period of how
many days?
a) 30 days
b) 60 days
c) 90 days
d) 120 days

CIBM, Manipal-Multiple Choice Questions – 2020 379

 100. The Circle Heads shall constitute a Committee at their Circle level in accordance
with the provisions of The Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. What is this committee called?
a) Internal Committee
b) Complaints Committee
c) Internal Complaints Committee
d) Prevention of Sexual Harassment Committee

KEY ANSWER
251/2020 to
300/2020
1 2 3 4 5 6 7 8 9 10
A B A D D B D D D B
11 12 13 14 15 16 17 18 19 20
C D C B C D D D C C
21 22 23 24 25 26 27 28 29 30
D B D C D C A D B D
31 32 33 34 35 36 37 38 39 40
C B A C C C B A A C
41 42 43 44 45 46 47 48 49 50
B B C A C A A B B A
51 52 53 54 55 56 57 58 59 60
A B C B B A A A C B
61 62 63 64 65 66 67 68 69 70
A B C B B A A B D D
71 72 73 74 75 76 77 78 79 80
C D B C B B C D B B
81 82 83 84 85 86 87 88 89 90
C C B A B D A C B B
91 92 93 94 95 96 97 98 99 100
A B D C D C A B C C

CIBM, Manipal-Multiple Choice Questions – 2020 380

CIBM, Manipal-Multiple Choice Questions – 2020 381
 Circular based MCQ (301/2020 to 350/2020)
1. As per policy on Use of Social Media an employee cannot share theinformation of the
Bank. In this context which of the following is not restricted to share?
a) Criticize Business of our Bank
b) Remarks/View which may defamatory to the Bank
c) Criticize/Comment on our Bank Policies
d) Business Products of our Bank
e) Uses of our Bank logo

2. Which of the following notice boards are to be mandatorily displayed in the Banking hall?
a) Comprehensive notice Board on time norms
b) BCSBI codes
c) Interest payment on delayed collection
d) Salient features of genuine notes
e) All of the above

3. Which of the following accounts of Retail Lending Schemes are eligible for credit under
Canara Credit Support to COVID 19 effected account?
a) All Standard accounts of Housing Loan,Canara Budget and Canara Pension as on date of
sanction of CCS.
b) All Standard accounts of Housing Loan, Canara Budget and Canara Pension upto SMA-0
and SMA-1 accounts as ondate of sanction of CCS are eligible under theScheme.
c) All Standard accounts of Housing Loan, Canara Budget and Canara Pension up to SMA-0
and SMA-1 accounts as on 24.03.2020.
d) All Standard accounts of Housing Loan, Canara Budget and Canara Pension up to SMA-0
accounts as on 24.03.2020.
e) All Standard accounts of Housing Loan, Canara Budget and Canara Pension up to SMA-0
accounts as on date of sanction are eligible under the Scheme.

4. What is the amount reimbursable where Bank vehicles are not available for Scale VI
posted at administrative unit, other than RO Head?
a) Rs.15000/-
b) Rs.20000/
c) Rs. 32000/-
d) Rs.30000/-
e) Rs.35000/-

CIBM, Manipal-Multiple Choice Questions – 2020 382

5. Who is the Competent Authority for permitting VRS/ Resignation in case of Officer
Employee in Scale I/II/III and Executive in Scale IV/V?
a) General Manager of CO
b) Chief General Manager of CO
c) The Chief General Manager/ General Manager, Human Resources Wing,Head Office
d) The Executive Director – Overseeing H R Wing
e) Managing Director & CEO

6. Credit Guarantee Fund for Micro Units (CGFMU) is the Trust Fund set up by Government
of India and managed by-
a) NCGTC
b) CERSAI
c) CGTMSE
d) SBI
e) None of the above

7. “Guarantee Cover” under CGFMU means maximum cover available per portfolio, based
on the amount in default, in respect of the credit facility extended by the lending
institution. In this matter which of the following is correct?
a) The first 3% of the amount in default will be borne by the eligible lending institution.
b) The amount in default over and above 3% (if applicable) will be settled by the fund to the
extent of 75% on pro-rata basis, subject to the receipt of an Auditors’ certificate
confirming eligible claim amount.
c) The amount in default will be settled by the fund to the extent of 75% on pro-rata basis.
d) The amount in default will be settled by the fund to the extent of 85% on pro-rata basis
subject to the receipt of an Auditors’ certificate confirming eligible claim amount.
e) Only a and b are correct.

8. In case of CGFMU settled account, every amount recovered and due to the Fund is to be
paid –
a) Within 30 days from the end of FY in which it was recovered.
b) Within 30 days from the date of recovery.
c) Within 15 days from the end of FY in which it was recovered
d) Within 15 days from the date of recovery.
e) Recovered amount is to be credited to commission account.

CIBM, Manipal-Multiple Choice Questions – 2020 383

9. In case of CGFMU settled account, recovered amount due to the Fund is to be remitted
within 30 days from the end of FY in which it was recovered. If there is a delay beyond 30
days what is the rate of interest to be paid for the delayed period?
a) MCLR+ 2%
b) RLLR+2 %
c) Base Rate +2%
d) Repo Rate+2%
e) Reverse Repo Rate + 2%

10. Loans sanctioned to Self Help Groups (SHGs) between Rs. 10 lakh and Rs. 20 lakh are
eligible for coverage under CGFMU. What is the Guarantee fee for the SHGs-
a) 0.20 % p.a. during first year and 1.00% p.a. in subsequent year
b) 0.20 % p.a. duringfirst year and 0.50% p.a. in subsequent year
c) 0.10 % p.a. during first year and 0.25% p.a. in subsequent year
d) No Guarantee fee for SHGs.
e) 0.25% p.a. during first year and 0.50% p.a. in subsequent year

11. What is the rental ceiling for quarters for Executive in Scale IV in Area III?
a) Rs. 18000/-
b) Rs.14000/-
c) Rs.12000/-
d) Rs. 15000/-
e) Rs.11000/-

12. Where ever the moratorium of instalment falling due between 01.03.2020 to
31.05.2020 has been permitted asset classification of such accounts should have been
“standard” as on_________ under IRAC norms of COVID -19?
a) 29.02.2020
b) 31.03.2020
c) 01.04.2020
d) 28.02.2020
e) 01.03.2020

13. Which of the following debit cardshave insurance facility extended by NPCI?
a) Rupay Classic Debit Card
b) Rupay Master Debit Card
c) VISA debit Card
d) Maestro Debit Card.
e) Rupay PMJDY Domestic Debit Card

CIBM, Manipal-Multiple Choice Questions – 2020 384

14. In case an officer employee is imposed with punishment of Major penalty under
Regulation 4 (f) of CBOE Regulation 1976, the rigour of punishment for the purpose of
promotion shall be held for the period of-?
a) Four Year from date of imposition of punishment.
b) Three Year from date of imposition of punishment.
c) Two Year from date of imposition of punishment.
d) One Year from date of imposition of punishment.
e) Five Year from date of imposition of punishment.

15. If an officer employee imposed with the punishment of reduction in grade or post under
Regulation 4 (g) of CBOE Regulation 1976, the promotion shall be held for the period of?
a) One Year from date of imposition of punishment.
b) Three Year from date of imposition of punishment.
c) Two Year from date of imposition of punishment.
d) Five Year from date of imposition of punishment.
e) For entire residual service from the date of imposition of punishment.

16. Which of the following punishment may be imposed if an workmen employee found
guilty of Gross Misconduct as per Canara Bank service Code ?
a) Dismiss without notice
b) Remove from service with superannuation benefit
c) Compulsory retirement with superannuation benefit
d) Discharge from Service with superannuation benefit
e) Any one of the above.

17. Which of the following is not a Minor Misconduct as per Canara Bank Service Code?
a) Unpunctual or irregular attendance.
b) Absence without leave
c) Committing nuisance on the premises of the Bank
d) Drunkenness behaviour on the premises of Bank.
e) Canvassing of union membership within the premises of the Bank with permission of the
management.

18. Within what period the whistle blower/ complainant is required to confirm that he/she
had sent the complaint to the designated authority?
a) 15days from receipt of letter.
b) 30days from receipt of letter
c) 45 days from receipt of letter
d) 60 days from receipt of letter
e) 90 days from receipt of letter

CIBM, Manipal-Multiple Choice Questions – 2020 385

19. Bank has designated Central Public Information Officer (CPIO) to receive application as
per RTI act 2005. Which of following is correct designated authority as CPIO by our bank?
a) Executive in Scale IV or V in HO
b) Executive in Scale IV or V in CO
c) Executive in Scale IV or V in RO
d) Executive in Scale IV or V in Branch
e) Only a, b and c

20. What is the time norms to dispose off RTI application if information concerns the life or
liberty of a person?
a) 12 hours
b) 24 hours
c) 36 hours
d) 48 hours
e) 60 hours

21. SHG credit linkage month is to be observed in which of the following months?
a) May
b) August
c) November
d) February
e) All of the above.

ANSWER KEYS CIRCULAR 301/2020 to 350/2020

1 2 3 4 5 6 7 8 9 10
d e b c c a e a d e
11 12 13 14 15 16 17 18 19 20
c a e d c e d b e D
21
e

CIBM, Manipal-Multiple Choice Questions – 2020 386

 Circular based MCQ (351/2020 to 400/2020)
1. Interest Equalisation scheme on Pre and Post Shipment Rupee Export Credit-Extended
with same scope and coverage up to (cir352/2020)
a. 31st March 2020.
b. 31st March 2021
c. April 01, 2020.
d. 30th September 2021.

2. Revised Rate of Tax Deduction at Source (TDS)/Tax Collection at Source (TCS) Rate(s)
relevant to bank are effective from
a. 01.04.2020
b.14.05.2020
c. 01.06.2020
d. 14.04.2020

3. Under 194N If any customer has NOT FILED Income tax Return for ALL the Previous Three
Financial Year (i.e., for F.Y. 2020-21 ITR of FY 2016-17, 2017-18 & 2018-19) TDS on cash
withdrawal exceeding Rs 1Crore is (cir353/2020)
a. 5 % TDS
b. 2% TDS
c. No TDS
d. 1% TDS

4. Revised Rate of Tax Collection at Source (TCS) for Foreign remittance through Liberalized
Remittance Scheme (LRS) of RBI above Rs. 7 Lakh in a Financial Year other than Sale of
Overseas Tour Package & remittance out of loan obtained from Bank for pursuing any
education is
a. 5% wef 01.10.2020.
b. 1.00%
c. 0.5%
d. 1.50%wef 01.04.2020

CIBM, Manipal-Multiple Choice Questions – 2020 387

5 exemption of EDP training for claiming the Margin Money under PMEGP till (cir356/2020)
a. 31.03.2021
b.30.06.2020
c. 30.09.2020 ( cir 556/20)
d. 31.05.2020

6. ROI for staff Housing Loan Fresh as well as Existing loan is---(Cir No 358/2020)
a. 6% p.a Simple.
b. 7.50% p.a Simple.
c. 6% up to Rs.25,00,000/- and 7.5% above Rs.1,00,00,000/-
d. 8% up to Rs.50,00,000/- and 8.5% above Rs.75,00,000/-

7.Branches to ensure to retain Form 60 for a period of ____ years from the end of Financial Year in
which the transaction was undertaken. (Cir 371/2020 & 79/2016)
a. 5
b. 6
c. 2
d. 3

8.Branches to ensure PAN No. or a Declaration in Form No. 60 is obtained in case of

i. Any transactions of an amount exceeding Rs 2lacks, regardless of the mode of payment.
ii. Exceeding Rs.50000/- by way of cash during any one day.
iii. Opening of an account ( except BSBD) and with the Bank & opening of time deposit exceeding
Rs.50000/- or aggregate to more than Rs 5lacks during a financial year
(Cir 371/2020 & 79/2016)
a. ii only
b. i & ii
c. i, ii and iii
d. ii & iii

9.Annual Stock & Receivable Audit should be got compulsorily done in respect of all borrowal
accounts enjoying FB & NFB working capital limits of Rs. ________ for Moderate, High Risk and
Unrated accounts from our Bank/ Banking System. (Cir 370/2020)
a. 1 Crore & above
b. 2 Crore & above
c. 3 Crore & above
d. 5 Crore & above

CIBM, Manipal-Multiple Choice Questions – 2020 388

10.Annual Stock & Receivable Audit should be got compulsorily done in respect of all borrowal
accounts enjoying Fund Based & Non-Fund Based (NFB) working capital limits of Rs. ________ for
accounts rated up to Low Risk III and Normal Risk from our Bank/ Banking System. (Cir 370/2020)
a. 1 Crore & above
b. 2 Crore & above
c. 3 Crore & above
d. 5 Crore & above

11.Periodicity of Stock & Receivable Audit for Substandard assets should be done _______ (Cir
370/2020)
a. Once in 2 years
b. Annually
c. Once in 3 years
d. Once in 5 years

12.Periodicity of Stock & Receivable Audit for doubtful assets is once in 2 years, if account balance is
less than ____ crores. In respect of accounts where balance is ___ crores and above, stock audit
to be conducted once in a year (Cir 370/2020)
a. 5
b. 2
c. 3
d. 1

13.Ratings of the accounts are downgraded from Low/Normal risk to Moderate or High Risk as the
case may be, immediate valuation within a period of ___ months of such down gradation shall be
undertaken
(1 notch downgrade & current valuation not less than 6 months) (Cir 370/2020)
a. 6
b. 4
c. 5
d. 3

14.Whenever an account gets classified as NPA, a normal cooling period of one quarter shall be
provided for up-gradation/rectification of default. In case the account continues to be NPA even
after cooling period, Stock Audit shall be undertaken within a maximum period of __ months of
account turning NPA. (Cir 370/2020)
a. 6
b. 2
c. 12
d. 3

CIBM, Manipal-Multiple Choice Questions – 2020 389

15.Delegation for Permitting waiver of Stock Audit including accounts under Consortium Accounts /
Joint Lending Arrangement (JLA) / Any other Joint Mechanism for lending in respect of High-Risk
accounts? (Cir 370/2020)
a. Circle Head up to and inclusive of sanctioning powers
b. In respect of HO power accounts, respective sanctioning authority may permit waiver.
c. In respect of MC power accounts, the waiver can be permitted by CAC of the Board on case to
case basis.
d. No Waiver

16.In respect of _______ assets, where security is negligible/not available, fully provided
accounts and fully written off under Technical Write Off, such accounts are exempted from
current assets valuation. (Cir 370/2020)
a. Doubtful
b. Loss
c. Standard
d. Sub Standard

17.Purpose of valuation is: (Cir 370/2020)

i. To ascertain the amount to be given as a loan
ii. For periodically ascertaining the value of the property that has been mortgaged, whether it is
increasing or decreasing over the mortgage period.
iii. For the purpose of realizing the value of Non-Performing Assets (NPA)
iv. For the purpose of redemption of properties in cases of default.
a. i, ii and iv
b. i , iii and iv
c. i, ii and iii
d. All the above

18.Valuation of fixed assets (other than Agricultural property) which are obtained as prime and
/ or collateral security, to be done once in _____ years. (Cir 370/2020)
a. Five
b. Three
c. Two
d. One

19.For the purposes of allowing concession in ROI and sanction of additional credit facility,
against tangible collateral security there should be a minimum gap of _____ years between
two valuations. (Cir 370/2020)
a. Two
b. Three
c. Five
d. No gap

CIBM, Manipal-Multiple Choice Questions – 2020 390

20.Bank shall obtain minimum 2 independent valuation reports from 2 empanelled valuers in
respect of loan accounts where the value of individual property (Land and Building) obtained
as collateral for the loan is Rs. ______and above. (Cir 370/2020)
a. 2 Crore
b. 5 Crore
c. 10 crores
d. 1 Crore

21.If the security is only by way of landed properties (other than Agricultural properties) / sites /
plots without any super structure on it, valuation to be done? (Cir 370/2020)
a. Once in 3 years
b. No valuation by an outside valuer is necessary.
c. Only once at the time of sanction
d. By panel valuer only

22.If the value of Plant & Machinery to be charged is Rs. _______ & above, branches shall get
valuation of such P&M done from minimum two valuers on the Bank’s approved panel. (Cir
370/2020)
a. 50 Crore
b. 5 Crore
c. 10 Crore
d. 2 Crore

23.Pro-rata depreciation is to be charged in case of valuation report is more than one year old in
case of fixed assets.
Match the following.

Fixed Asset Depreciation (% p.a)

1 Building P NIL
2 Land Q 15
3 Vehicle R 5
4 Plant & Machinery S 20

a. 1-P,2-R,3-S,4-Q
b. 1-R,2-P,3-Q, 4-S
c. 1-R, 2-P,3-S,4-Q
d. 1-P, 2-R,3-Q,4-S

24.Branches can indent for gift cards through (Cir 365/2020)

a. Integrated Card Indent Package
b. NP Debit Card Indent package
c. Single Sign on Package (SSO)
d. Integrated Gift Card Indent Package

CIBM, Manipal-Multiple Choice Questions – 2020 391

25.Limit for TCS (Tax Collection at Source)by an authorized dealer for Remittance of funds to abroad
under Liberalised Remittance Scheme (LRS) under Sec206C (1G) (a) is above Rs. ________ in a FY
(Cir 363/2020)
a. 7 lakhs
b. 5 lakhs
c. 3 lakhs
d. 10 lakhs

26.Limit for TCS (Tax Collection at Source) by a seller whose turnover in the previous year exceeds
10 crores under Sec206C(1H) is above Rs. ________ in a FY (Cir 363/2020)
a. 25 lakhs
b. 10 lakhs
c. 50 lakhs
d. 1 Crore

27. TCS (Tax Collection at Source) will not be applicable, if the buyer is Central Govt., State Govt., an
embassy, a high commission, a legation, a commission, a consulate, the trade representation of a
foreign state, a local authority or any other person as notified by Central Government (Cir
363/2020)
True
False

28.TCS rates in case of Non Resident Indian to be increased by cess by __%. (Cir 363/2020)
a. 2
b. 5
c. 4
d. 1

29.Bank is eligible to avail ITC @50% of GST on eligible GST payments to Registered Vendors by
Branches/Offices subject to the condition that such GST payments are appearing in GST
Statement called _________ (Cir 360/2020)
a. GSTR1A
b. GSTR1B
c. GSTR2A
d. GSTR2B

30.For Canara Vehicle – Two-Wheeler loans in case of salaried individuals, minimum gross salary p.a
is Rs. ______ lakhs. (Cir 357/2020)
a. 2
b. 1
c. 1.5
d. 1.75

CIBM, Manipal-Multiple Choice Questions – 2020 392

31.Net Take home salary under Canara Vehicle – Two-Wheeler Scheme is: (Cir 357/2020)
a. 35% gross salary
b. 30% gross salary
c. 25% gross salary
d. 40 % gross salary

32.For Canara Vehicle – Two-wheeler, NTH salary can be relaxed up to ___% gross salary (Cir
357/2020)
a. 35% gross salary
b. 30% gross salary
c. 25% gross salary
d. 40 % gross salary

33.Minimum margin requirement for clean NFB limits shall be ___% as TDR. (Cir 379/2020)
a. 15
b. 25
c. 35
d. 10

34.Reduction in the minimum margin requirement for clean NFB limits beyond 15% is now
permitted for accounts rated up to and including ______ Risk. (Cir 379/2020)
a. Low
b. Normal
c. Moderate
d. High

35.______________and above authorities are empowered to permit transfer/ apportionment of

limits. (Cir 380/2020)
a. CGM/GM-HO-CAC.
b. CGM/GM-CO-CAC
c. ED-CAC
d. CAC of the Board

36.One-time settlement scheme (OTS) for “REPEATED RESTRUCTURED STANDARD

ACCOUNTS UNDER AGRICULTURE” covers loans sanctioned on or before ____________
with following conditions. (Cir 384/2020)
i. Aggregate sanctioned limit up to Rs.25lacks.
ii. Account should have had liability of 200% or more of the sanctioned limit at any point of
time.
iii.The scheme will be operative till 31.03.2021.
a. 31.03.2013
b. 31.03.2014
c. 31.03.2015
d. 31.03.2016

CIBM, Manipal-Multiple Choice Questions – 2020 393

37. Our Canara Bank Golden Jubilee Staff Welfare Fund has revised the free scholarship
facility to the children of the deceased members (of the fund). The revised Rates of
Scholarship payable w.e.f. 01.04.2020 to the children of deceased member pursuing High
School education is ____________? (Cir. 390/2020).
(a) Rs.6,000 /- p.a.
(b) Rs.8,000 /- p.a.
(c) Rs.10,000 /- p.a.
(d) Rs.12,000 /- p.a.

38. Our Canara Bank Golden Jubilee Staff Welfare Fund has revised the free scholarship
facility to the children of the deceased members (of the fund). The revised Rates of
Scholarship payable w.e.f. 01.04.2020 to the children of deceased member pursuing
College education is ____________? (Cir. 390/2020).
a. Rs.6,000 /- p.a.
b. Rs.8,000 /- p.a.
c. Rs.10,000 /- p.a.
d. Rs.12,000 /- p.a.

39. As per the new scheme for reimbursement of telephone expenses to employees/
officers who are not provided either with landline or mobile phone/ mobile charges
facility by the bank confirmed sub-ordinate staff are eligible for reimbursement up to
_______? (Cir. 391/2020)
(a) Rs. 200/- per month
(b) Rs.100/- per month
(c) Rs. 75/- per month
(d) Not Eligible

40. As per the new scheme for reimbursement of telephone expenses to employees/
officers who are not provided either with landline or mobile phone/ mobile charges
facility by the bank Bank Drivers are eligible for reimbursement up to _______? (Cir.
391/2020)
a. Rs. 200/- per month
b. Rs.100/- per month
c. Rs. 75/- per month
d. Not Eligible

CIBM, Manipal-Multiple Choice Questions – 2020 394

41. As per the new scheme for reimbursement of telephone expenses to employees/
officers who are not provided either with landline or mobile phone/ mobile charges
facility by the Bank Confirmed Non-subordinate cadre employees are eligible for
reimbursement up to _______? (Cir. 391/2020)
a. Rs. 200/- per month
b. Rs.100/- per month
c. Rs. 75/- per month
d. Not Eligible

42. Post of Re-organisation of Zonal Inspectorates (ZI), consequent to the amalgamation

process Zonal Inspectorates are re-organized into _____with effect from
01.06.2020_____? (Cir. 396/2020)
(a) Fifteen ZIs
(b) Fourteen ZIs
(c) Twenty ZIs
(d) Twenty-One ZIs

43. Post amalgamation process of Zonal Inspectorates (ZI), consequent to the amalgamation
process Zonal Inspectorates units are re-organized into _____with effect from
01.06.2020? (Cir. 396/2020)
(a) 75
(b) 80
(c) 81
(d) 84

44. The concept _____ of auditing among ZIs for Risk Based Internal Audit (RBIA) of
branches / Units / Offices introduced (Cir. 396/2020)
(a) Criss-cross way
(b) Online way
(c) Branch Level Way
(d) Rapid Way

45. In case of BG (Trade Credit) commission to be charged if buyers’ credit availed from our
bank is __? (Cir. 397/2020)
(a) 0.25% per annum, for the period of the BG
(b) 0.50% per annum, for the period of the BG
(c) 0.75% per annum, for the period of the BG
(d) 1.00% per annum, for the period of the BG

CIBM, Manipal-Multiple Choice Questions – 2020 395

46. In case of BG (Trade Credit) commission to be charged if buyers’ credit availed from
another bank is____? (Cir 397/2020)
a. 0.25% per annum, for the period of the BG
b. 0.50% per annum, for the period of the BG
c. 0.75% per annum, for the period of the BG
d. 1.00% per annum, for the period of the BG

47. In case of Bills negotiated under LC (BULC) where payment is / was to be received during
the period from 01.03.2020 to 31.05.2020 if any request is received from Buyer’s Bank
through SFMS requesting for our agreement to extension of due date of payment due to
COVID 19 crisis, if the Seller (our customer who is Beneficiary)/agrees for such extension
in writing, Branches may allow extension of due date of receipt of payment accordingly
for a period not exceeding ____ days from the original due date (Cir. 398/2020)
(a) 90 Days
(b) 75 Days
(c) 30 Days
(d) 60 Crore

48.M/s Atyati Technologies Pvt. Ltd. is a selected service provider for Implementation of
Doorstep Banking Services through Universal Common Touch Points as part of EASE
(Enhanced Access and Service Excellence) reforms agenda for PSBs in the following cities
(Cir. 399/2020)
a. Delhi & Kolkata
b. Chennai & Delhi
c. Bangalore & Jaipur
d. Delhi & Bangalore

49. M/s Integra Microsystem Pvt. Ltd is a selected service provider for Implementation of
Doorstep Banking Services through Universal Common Touch Points as part of EASE
(Enhanced Access and Service Excellence) reforms agenda for PSBs in the following
cities(Cir. 399/2020)
a. Delhi & Kolkata
b. Chennai & Delhi
c . Bangalore & Jaipur
d. Delhi & Bangalore

CIBM, Manipal-Multiple Choice Questions – 2020 396

50. To implement “Door Step Banking” facility after pick-up address is selected, customer to
identify branches of the Bank within ____ radius of the pick-up address as his default
branch (Cir. 399/2020)
(a) 2-3 KM
(b) 4-5 KM
(c) 7-8 KM
(d) 5-10 KM

51. All the services registered in Doorstep Banking System, up to 3 PM on any working day
has to be completed within _____ of booking. (Cir. 399/2020)
(a) 3 hours
(b) 4 hours
(c) 5 hours
(d) 6 hours

52. All Services booked in Doorstep Banking System after 3 PM has to be completed by
______ of next working day (Cir. 399/2020)
(a) 12 PM
(b) 1 PM
(c) 2 PM
(d) 3 PM

ANSWERS TO MCQ ON CIRCULARS 351/2020 to 400/2020

1 2 3 4 5 6 7 8 9 10
B B A A C A B C A D
11 12 13 14 15 16 17 18 19 20
A A D A D A D B A C
21 22 23 24 25 26 27 28 29 30
B A C A A C TRUE C C D
31 32 33 34 35 36 37 38 39 40
A C B C A B B C C A
41 42 43 44 45 46 47 48 49 50
B A C A B D A A C D
51 52
A B

CIBM, Manipal-Multiple Choice Questions – 2020 397

Circular based MCQ (401/2020 to 450/2020)
1. If A Dormant account is KYC Non-compliant, To activate such account permission from followings
is required-(HO Cir 401/2020, 485/2020)
(A) Regional Head
(B) Circle Head
(C) Branch Head
(D) No permission required

2. Branches shall obtain KYC documents from customers and update invariably in CBS. Select the
incorrect answer with respect to KYC Policy :-
(A)Obtain KYC documents at time of account opening to new customer
(B)Obtain KYC documents, opening new accounts using existing Customer ID which are KYC non-
compliant
(C) If KYC documents are not available for existing accounts, debit operation not allowed
(D)While converting Dormant accounts to operative, verification of KYC status of the customer not
required.

3. A Clarification on policy matter / circular from Head Office by any branch / Regional office/ Circle
Office can be sought under signature of followings only- (HO Cir 402/2020)-
(A) Regional Head (B) Circle Head
(C) Branch Head (D) No clarification can be sought

4. Following amount (incl. GST) to be collected from residents for biometric updation in AADHAAR
card at our Aadhar Seva Kendra in identified branches (HO Cir 404/2020)
(A) Rs. 100/- (B) Rs. 50/- (C) Rs. 118/-(D) Free Service

5. Comprehensive audit which is to be conducted along with RBIA, is related to which of the
following subject matter (HO Cir 406/2020)-
(A) Overall functioning of branch
(B) Business performance of branch
(C)Unauthorized Operations in internal / GL Accounts of branch (D) None of
the above

6. Which one is a unauthorized category of transaction as per RBI Guidelines (HO Cir 406/2020)-
(A) Changing of Loan account schedule without permission
(B) Routing Customer Transection thru GL
(C) Discounting cheque to prevent slippage
(D) All of the above

CIBM, Manipal-Multiple Choice Questions – 2020 398

7. A workman employee governed under Canara Bank (Employee Pension) Regulations 1995, can
apply for Voluntary retirement from service after putting minimum service of ___ years (HO Cir
408/2020)-
(A) 20 (B) 25
(C) 18 (D) 22

8. Officials at CO involved in empanelment of Valuers, Advocates, has to follow mandatory leave /

Be away from Desk guidelines of _________days (HO Cir 409/2020
(A) 10 Days
(B) 5 Days
(C) 7 Days
(D) Not covered under concerned policy

9. The Competent Authority for the purpose of asking the employee to be away fromdesk up to
scale III working in the circle shall be (HO Cir 409/2020)
(A)Divisional Manager Circle Office
(B)Assistant General Manager Circle Office
(C)Circle Head
(D)General Manager, HR Wing.

10. At the time of transfer of an employee, following category of accounts should be transferred to
transferee branch(HO Cir 410/2020)-
(A)Staff Housing Loan
(B)Gold Loan
(C)Clean Overdraft account
(D)All of the above

11 DAY-NRLM interest Subvention claims is being advised by (HO Cir 414/2020)

(A)Ministry of Home Affairs , Government of India
(B)Ministry of Rural Development , Government of India
(C)Ministry of Human Resources, Government of India
(D)Ministry of Finance , Government of India

12 Skill Loans sanctioned up to a limit of Rs. _____ lakhs without any collateral security/third party
guarantee are eligible for coverage under Credit Guarantee Fund Scheme for Skill Development
Loan (CGFSSD). (HO Cir 415/2020)
(A)Rs. 1 Lac
(B) Rs. 1.5 Lac
(C) Rs. 2 Lac
(D)Rs. 2.5 Lac

CIBM, Manipal-Multiple Choice Questions – 2020 399

13 All Education Loans sanctioned up to a limit of Rs. ______ lakhs without any collateral
security/third party guarantee are eligible for coverage under Credit Guarantee Fund Scheme for
Education Loan (CGFSEL). (HO Cir 415/2020)
(A)Rs. 4 Lac
(B) Rs. 10 Lac
(C) Rs. 7.5 Lac
(D)Rs. 12 Lac

14 Which one is false about revamped Pradhan Mantri Fasal Bima Yojana (PMFBY) (HO Cir
418/2020)-
(A)All Loanee Farmer has to be covered for crop insurance compulsorily
(B) Farmers can opt out of the scheme 7 days before cutoff date
(C) Farmers can opt in also in future if they wish so.
(D)Non Loanee farmer can also opt for PMFBY scheme from our bank branches.

15 Appointment of specialized agency (ASM) has to be done for post sanction monitoring of
account having aggregate exposure of Rs. _____ crore & above from banking system- (HO Cir
425/2020)
(A)Rs. 100 Crore
(B) Rs. 150 Crore
(C) Rs. 200 Crore
(D)Rs. 250 Crore

16 For HO Power account having aggregate exposure of Rs. 250 crore & above from banking system,
for post sanction monitoring of account appointment of specialized agency (ASM) has to be done
by - (HO Cir 425/2020)
(A)Core Credit Group
(B) Credit Wing
(C) Credit Administration & Monitoring wing (CAM)
(D)MSME Wing

17 Following service charges have been waived for KCCS/ Crop loans up to Rs.3 lakhsto Small and
marginal farmers till 31.03.2021 (428/2020)
(A)Processing & Documentation Charges
(B) Inspection charges
(C) Ledger & folio charges
(D)All of the above
(E) No such waiver

CIBM, Manipal-Multiple Choice Questions – 2020 400

18 Collateral by way of Gold Jewellery has to be taken for loan amount of above Rs. ___lakhs,for e-
Syndicate product cod“806- KCC with Gold Jewellery” (429/2020)
(A)1
(B) 1.50
(C) 2
(D)2.50

19 For Product code 806- KCC with Gold Jewellery, whenever gold Jewellery is accepted as collateral,
KCC Limit is to be fixed as per- (429/2020)
(A)Appraised Value of Gold
(B) Gross value of Gold
(C) Scale of finance
(D)Loanable value of Gold Jewellery

20 PPF account opened on behalf of HUF, prior to 13 May 2005 shall be- (HO Cir 430/2020)
(A)Extended further after completion of 15 years
(B) Has to be closed after completion of 15 years from end of the year in which initial subscription
was made
(C) Can be further extended for a period of 5 years only
(D)All options are correct

21. Review of KYC is done in __________years in respect of Low Risk, Medium Risk and High Risk
(HO Cir 449/2020)
a. 2, 4 & 6 years respectively
b. 10, 8 & 2 years respectively
c. 8,6 & 2 years respectively
d. Option other than above

22. While Reviewing KYC of the Low Risk customer, if we do not receive response from customer
with in _____days for letter sent for Re-KYC, it will be presumed that there is no change in KYC
and accordingly records with us will be updated
a. 5 Days
b. 10 Days
c. 7 Days
d. 15Days

CIBM, Manipal-Multiple Choice Questions – 2020 401

23. Please find the incorrect Statements wrt Modified Liberalized Working Capital Assessment
(LWCA) [Cir 448/2020 –Other related Cirs -369, 376, 386, 388, 398 /2020]:
a. For arriving the DP Reduction (by 50%) permitted in Margin will be restored to original level by
31.03.2021
b. Any other Limit adhoc in nature (except GECL), will be subsumed in this LWCA.
c. Any other Limit adhoc in nature (including GECL), will be subsumed in this LWCA.
d. Proposals / requests received on or before 31.08.2020, the re assessment shall be done as per
LWCA method on the request of the Borrower

24. As a part of Prime Minister’s package for farmers, Hon’ble Finance Minister has announced to
cover ______farmers under the KCC scheme in a mission mode to facilitate credit to the farm
sector [445/20]
a. 2.5 Crores
b. 1.5 Crores
c. 3.5 Crores
d. 2.0 Crore

25. How much ROI is charged to a Two wheeler loan to officer employee of amount Rs. 1lacks [Cir
441/20]
a. 7% simple
b. 6.5% simple
c. 6% simple
d. 5.5% simple

26. THEFT is defined under which section of IPC (Indian Penal Code) [443/20]
a. 377
b. 378
c. 379
d. 376

27. Frisking duties in the Currency Chests will be undertaken by _____ security Guards (Bank’s own
guards).[443/20]
a. Three Security Guards
b. Four Security Guards
c. Two Security Guards
d. One Security Guard

CIBM, Manipal-Multiple Choice Questions – 2020 402

28. In Friskin Procedure, Biometric Access is installed in Currency Chests. Find out the incorrect
statements [443/20]
a. Entrance to the Currency Chest: Single fingerprint type - for all Staff.
b. Entrance to Vault Room : Dual fingerprint type - First and Second key Holder (Dual System)
c. Entrance to Sorting room: Single fingerprint type - for authorized Staffs of Currency chest.
d. Entrance to Vault Room: Single fingerprint type - First and Second key Holder.

29. The Currency and Coins stored in Canara Bank Currency Chest and e-Syndicate Bank belong to:
[443/20]
a. Now all these belong to Canara Bank
b. Canara Bank’s will belong to Canara Bank and e-Syndicate’s will belong to e-Syndicate till
31.03.2021, thereafter it will belong to Canara Bank.
c. Reserve Bank of India
d. Government of India

30. How much ROI is charged to Vehicle Loans to employees [Cir 441/20]
a. 7% simple
b. 6.5% simple
c. 6% simple
d. 5.5% simple

31. How much interest is provided on gold bond purchased under Sovereign Gold Bond Scheme
during the year 2020
(A)1.35%
(B) 2.90%
(C) 2.50%
(D)2.75%

32. Guaranteed Emergency credit Line (GECL) Loans are guaranteed by NCGTC under which of the
guarantee scheme (HO Cir 424/2020)-
(A)CGTMSE
(B) CGFMU
(C) CGFAEL
(D)ECLGS

33. Which one is not correct about an eligibility criteria for applying loan under GECL (HO Cir
427/2020)-
(A)MSME Borrower having credit exposure upto Rs. 50 crore as on 29.02.2020
(B) Account classified under SMA-0, SMA1 & SMA-2 are eligible except NPA account
(C) Eligible units shall be GST registered if applicable
(D)Loans provided to individuals for own business purposes can also be covered

CIBM, Manipal-Multiple Choice Questions – 2020 403

34. Which one is not true about a PMMY account for GECL Loans (HO Cir 427/2020)-
(A)Pradhan mantra Mudra Yojana (PMMY) Loans are eligible for GECL Loans
(B) PMMY should be disbursed on or before 29.02.2020
(C) PMMY are not covered under GECL
(D)GECL can be provided upto 20% of PMMY loan amount

35. Which one is not correct for a GECL Loan to borrower who is under multiple / Consortium
banking (HO Cir 389/2020,405/2020,804/2020)-
(A)GECL can be availed maximum of 20% of aggregate exposure
(B) GECL can be availed from leader bank only in case of consortium
(C) GECL can be availed from multiple banks as per agreed proportion in consortium agreement
(D)NOC is not required from other banks if GECL is availed from one bank with 20% of proportional
limit

36. Total tenor (including moratorium) for loans under GECL scheme is (HO Cir
389/2020,405/2020,804/2020) -
(A)2 Years
(B) 3 Years
(C) 4 Years
(D)5 Years

37. Maximum moratorium which can be provided to GECL Loans is (HO Cir
389/2020,405/2020,804/2020)-
(A)3 months
(B) 6 Months
(C) 9 Months
(D)12 Months

38. How much guarantee fee is being charged for GECL Loan by NCGTC (HO Cir
424/2020,804/2020)?
(A)0.50%
(B) 1%
(C) 1.5%
(D)No fee is being charged

39. Risk weight for GECL Loans are (HO Cir 424/2020,804/2020)-
(A)50%
(B) 100%
(C) 0%
(D)5%

CIBM, Manipal-Multiple Choice Questions – 2020 404

40. Which are the following security is to be taken as collateral for GECL (HO Cir
446/2020,719/2020,804/2020)-
(A)Additional Mortgage
(B) Term Deposits
(C) Second charge on existing securitiesavailable with the lenderfor loan above Rs. 25lacks
(D)Personal guarantee of promoters

41. Ashok runs a business enterprise and have a GST registration having turnover of Rs. 50lacks.
However, his firm is not registered as an MSME nor having Udyog Aadhar. XYZ Bank has not
classified him as an MSME borrower. Is he eligible under the scheme?(HO Cir 446/2020)
(A)Yes Eligible
(B) Not Eligible

42. Which type of following exposures are cover for total exposure under eligibility for GECL Loans
(HO CIR 446/2020)-
(A)Fund Based & Non Fund based exposure
(B) Only Fund Based Exposure with all banks
(C) Off Balance Exposure along with fund based limit
(D)All type of exposure with all banks / NBFCs

43. Select category of customers not eligible under GECL (HO Cir 389/2020,405/2020,804/2020)-
(A)Individual borrowers
(B) GST Registered MSME Borrowers
(C) HUF firms
(D)Self-help Groups

44. If an eligible borrower banking with us. Sister concern of the borrower has some outstanding
over 60 days past due. Whether he is eligible for assistance under GECL? (HO CIR 446/2020,
804/2020)-
A) Yes, eligibility of the borrower is to be seen, not of other entities/personal account.
(B) Not eligible due to sister concern SMA position
(C) Eligible ,considering sister concern account is having overdue less than 90 days
(D) Not at all eligible due to multiple loan accounts

45. Up to which risk rating/ scoring based on CIC scoring GECL can be granted (HO CIR 446/2020)-
(A)Low risk
(B) Moderate Risk
(C) High Risk
(D)Pre-Approved Loans, Risk rating is not the eligibility criteria

CIBM, Manipal-Multiple Choice Questions – 2020 405

46. GECL Loan shall be given in the form of (HO CIR 427/2020)-
(A)Term Loan
(B) Working Capital limit
(C) Working capital term loan (WCTL)
(D)FITL

47. Deferment of Loan installments during covid period was permitted by RBI up to- (HO Cir
450/2020)
(A)31.08.2020
(B) 30.09.2020
(C) 30.06.2020
(D)31.07.2020

48. A Working capital Limit sanctioned under Modified Liberalized Working Capital Assessment
(LWCA) shall be renewed on/ after- [Cir 448/2020 ]
(A)12 Months
(B) 18 Months
(C) 15 months
(D)On or before 31.03.2021 irrespective of expiry date

49. Interest subvention available for Agriculture gold loan sanctioned on or after 01.04.2020 is (HO
Cir 444/2020)-
(A)3%
(B) 2%
(C) 0%
(D)4%

50. To popularize the gold loan scheme , an exclusive number is made available to customers in
addition to Call Canara toll free number for gold loan related queries(Ho Cir 491/2020)
(A) 09015734734
(B) 09015734734
(C) 06366911144
(D) 18004252470

CIBM, Manipal-Multiple Choice Questions – 2020 406

 ANSWER KEY FOR CIRCULAR 401/2020 to 450/2020
1 2 3 4 5 6 7 8 9 10
A D B A C D A A B C
11 12 13 14 15 16 17 18 19 20
B B C A D C D C C B
21 22 23 24 25 26 27 28 29 30
B C C A C B C D C C
31 32 33 34 35 36 37 38 39 40
C D B C B C D D C C
41 42 43 44 45 46 47 48 49 50
A B D A D C A D C C

CIBM, Manipal-Multiple Choice Questions – 2020 407

 Circular based MCQ (451/2020 to 500/2020)
1. Due to Covid 19, relaxations permitted for PMJDY, BSBDA and Small a/c holders are as
follows. Which option is right? (451/20)
a. can draw money from all branches b. up to Rs 5000/- only
c. can draw with withdrawal slip d. Passbook need not be insisted
e. all above jointly

2. Who is the Competent authority to permit for up to scale III, In terms of Regulation 3 (c)
of Canara Bank Officer Employees’ (Acceptance of Jobs in Private Sector Concerns after
Retirement) Regulations, 2001(453/20)?
a) GM/CGM Circle Office b) GM/CGM , HR Wing , Head Office
c) ED MD & CEO d) None

3. Specialist Officer recruited in any specialized field shall continue in the same field till
promotion to (454/20)
a) Scale II b) Scale III c) Scale IV d) Scale V

4. All the loans sanctioned under GECL scheme is guaranteed under which scheme
(455/20)
a) CGTMSE b) CGFMU c) ECLGS d) NCGTC

5. OTR scheme for MSME A/Cs is valid till (457/20)

a) 31.12.20 b) 31.03.21 c) 30.09.20 d) Indefinitely

6. Eligibility Criteria for OTR scheme of MSME (457/20)

a) a/c should be standard as on 01.01.20
b) Continued to be a standard asset till the implementation date
c) Aggregate exposure up to 25 Crores from bank & NBFC as on 01.01.20
d) GST Registered as on the date of implementation (excluding exempted category as on
01.01.20)
e) all above jointly

7. BO Report is to be generated for Review of Risk Categorization of Deposit a/cs done by

DIT HO (459/20)
a) 170070A b) 170070 c) 170071A d) 170071

CIBM, Manipal-Multiple Choice Questions – 2020 408

8. In e-Syndicate, the Automatic Risk categorization of Deposit a/cs is running on
_________ basis (459/20)
a) Daily b) Quarterly c) Half Yearly d) Yearly

9. How many interoperable services to the customers of all branches of amalgamated bank
are provided ( 462/20)
a) 5 b) 7 c) 9 d) 12

10. Is transfer form CASA a/c to loan a/c permitted? (462/20)

a) Canara to e syndicate permitted b) e syndicate to Canara permitted
c) a & b d) Not permitted

11. Focal Point Branch for ESIC e-payment system is (463/20)

a) Directly dealt by Govt. Business Sec HO b) Govt.Business Branch, Delhi
c) Marketing Section CO d) Link Cell Nagpur

12. Agency commission payable to Banks for Physical receipts per transaction is (464/20)
a) Rs 9/- b) Rs 75/- c) Rs 6.5 d) Rs 40/-

13. Agency commission payable to Banks for Pension payment per transaction is (464/20)
a) Rs 9/- b) Rs 75/- c) Rs 40/- d) Rs100/-

14. Agency commission payable to Banks for other than Pension payment is (464/20)
a) Rs 9/- b) Rs 75/- c) 6.5 paisa per 100 turnover d) Rs 40/-

15. How Much Our Bank is earning for each APY a/c (464/20)
a) 200/- b) 100/- c) 125/- d) 225/-

16. How Much Our Bank is earning for each NPS a/c(464/20)
a) 200/- b) 100/- c) 125/- d) 225/-

17. How Much Our Bank is earning for each e-NPS a/c (464/20)
a) 200/- b) 100/- c) 125/- d) 225/-

18. National Pension System- All Citizen Module can be opened by which branch (464/20)
a) All the branches b) Only by designated Branches
c) Only Urban & Metro Branches d) All Branches except Rural Branches

CIBM, Manipal-Multiple Choice Questions – 2020 409

19. If we are the leader of Consortium, minutes of consortium meetings should be
circulated to all member banks within how many days from the meeting date. (465/20)
a) 3 days b) 3 working days c) 5 days d) 5 working days

20. Product Code for GECL is (466/20)

a) Canara Bank- 755 b) e-Syndicate-916 c) Canara Bank- 916
d) e-Syndicate-755 e) Option I & II both are correct

21 To be eligible for GECL, as on 29.02.2020, accounts should be not be classified as

(467/20)
a) Regular b) SMA 1 c) SMA 0 d) SMA 2

22. Moratorium Period for Interest repayment in case of GECL is(467/20)

a) 12 months b) 3 months c) Nil d) 2 months

23. Moratorium Period for repayment of Principal in case of GECL is (467/20)

a) 12 months b) 3 months c) Nil d) 2 months

24. What is the Guarantee Coverage provided by M/S NCGTC in case of GECL?
(467/20)
a) 75% b) 50% c) 100% d) Not being provided

25. What is the option for Canara Bank Statement Enquiry in e-Syndicate Branches with
regard Interoperable Functionalities permitted in CBS Application (468/20)
A) SN031 B) CN031 C) CH031 D) CH021

26. What is the option for e-Syndicate Statement Enquiry in Canara Bank Branches with
regard Interoperable Functionalities permitted in CBS Application (468/20)
A) SN031 B) CH031 C) CN031 D) CH021

27. What is the product code for GL OD - Crop Cultivation(469/20)

A) 840 B) 839 C) 890 D) 891

28. What is the product code for GL OD - - Allied Activities (469/20)

A) 261 B) 272 C) 269 D) 260

CIBM, Manipal-Multiple Choice Questions – 2020 410

29 What is the security code for GL OD - Crop Cultivation and GL OD - - Allied
Activities(469/20)
A) 711 B) 712 C) 713 D) 715

30. What is the periodicity for interest application for GL OD - Crop Cultivation(469/20)
A) Half Yearly B) MONTHLY C) ANNUALLY D) QUARTERLY

31. What is the periodicity for interest application for GL OD - - Allied Activities
(469/20)
A) ANNUALLY B) MONTHLY C) Half Yearly D) 2 YEARS

32 The Minimum loan amount to be sanctioned under GL-OD for Agriculturists against gold
jewellery (469/20)
A) Rs 5000 B) 1.60lacks C) Rs 500 D) Rs 100

33 What is the document number which we obtain as Application-cum-letter of pledge for

OD/loan against Gold Jewellery (469/20)
A) NF 372 B) NF 1002 C) NF 497 D) NF 1020

34. What is the maximum tenability period for OD facility to Agriculturists against Gold
Jewellery (469/20)
A) 3 years B) 2 years C) 1 year D) 4 year

35. What are the Safe Keeping Handling charges per month for Gold Loans: After 30 days of
the expiry of the prescribed tenure of gold loan upto 5lacks (469/20)
A) Rs 100 B) Rs 200 C) Rs 300 D) Rs 400

36. What are the Safe Keeping Handling charges per month for Gold Loans: After 30 days of
the expiry of the prescribed tenure of gold loan above 5lacks (469/20)
A) Rs 100 B) Rs 300 C) Rs 600 D) Rs 200

37. What is the register in which we take acknowledgement of the borrower while
delivering Jewels after closure of Gold loan (469/20)
A) NB 175 B) NB 170 C) NB 174 D) NB 173

38. What if the GL code for receiving the PMEGP margin money subsidy for e-syndicate
bank branches (470/20)
A) 170061500 B) 170061600 C) 170061700 D) 170061800

CIBM, Manipal-Multiple Choice Questions – 2020 411

39. "“Overdue term deposits will be paid interest at prevailing .......... rate for the overdue
period" (471/20)
A) SB B) FD C) KD D) REPO

40. Canara Bank 'Rajbhasha Akshay Yojana' was formulated in which year by our Bank
(472/20)
A) 1987 B) 1985 C) 1986 D) 1981

41. ........................was designed to motivate our Employees to use maximum of Hindi in

their day to day official work(472/20)
A) Rajbhasha Yojana B) Rajbhasha Akshay Yojana
C) Rajbhasha Puraskar Yojana D) Rajbhasha Samriddi Yojana

42. ...........was formulated in our Bank to encourage Branches, Offices, Sections and Wings
to foresee progress in the implementation of Official Language Hindi 472/20)
A) Rajbhasha Akshay Yojana B) Rajbhasha Puraskar Yojana
C) Rajbhasha Samriddi Yojana D) Rajbhasha Gaurav Yojana

43. What is the maximum cash prize will be awarded under "CANARA BANK RAJBHASHA
PURASKAR YOJANA" (For the Employees of Bank)( 472/20)
A) Rs 1000 B) Rs 10000 C) Rs 500 D) Rs700

44. "Coverage of Personal Accident Insurance scheme for KCC card holders
by........................ on Pan India basis for e-Syndicate Branches w.e.f. 01.07.2020"
(474/2020)
A) " M/s. Bajaj Allianz General Insurance company Limited"
B) M/s United India Insurance Company Ltd.,
C) M/s New Indua assurance company
D) M/S TATA AIG

45. What is the Premium amount (Bank share + Farmer share (Including GST) per year for
coverage of Personal Accident Insurance scheme for KCC card holders by........................
on Pan India basis (474/2020)
A) Rs 20 + Rs 5 B) Rs 8 + Rs 17 C) Rs 15 + Rs 10 D) Rs 17 + Rs 8

CIBM, Manipal-Multiple Choice Questions – 2020 412

46. The risk coverage of the PAIS offered for KCC card holders for Death due to accident
(within 12 months of the accident) caused by outward violent and visible
mean(474/2020)
A) Rs. 1,87,500/- B) Rs.75,000/- C) Rs. 1,50,000/- D) Rs 300000/-

47. The risk coverage of the PAIS offered for KCC card holders for Permanent total disability
or Loss of two limbs or two eyes or one limb & one eye (474/2020)
A) Rs 300000/- B) Rs. 1,87,500/- C) Rs.75,000/- D) Rs 100000

48. The risk coverage of the PAIS offered for KCC card holders for Loss of one limb or one
eye (474/2020)
A) Rs 100000 B) Rs 300000/- C) Rs. 1,87,500/- D) Rs.75,000/-

49. "The window for one-time partial credit guarantee offered by GOI will be open till 31st
March 2021 or till such date by which Rs. ........ crore worth of guarantees, including both
guarantees towards purchase of pooled assets and Bonds / CPs, are provided by the
Government, whichever is earlier." (475/2020)
A) Rs 5000 B) Rs 10,000 c) Rs 15000 D) Rs 20000

50. Branches/Offices are advised to maintain GST related documents for a period of....
(476/2020)
A) 20 years B) 5 years C) 10 years D) 8 years

51. Empanelled Agriculture Consultants will be paid service fee/ commission of 0.10% of
loan amount sanctioned for maximum of Rs …..... inclusive of applicable taxes for
sourcing Agriculture & Allied activities proposals (477/2020)
A) Rs 50000 B) Rs 75000 C) Rs 100000 D) Rs 25000

52. Agriculture Consultants will claim the fees at monthly rests from Branches for the loans
sanctioned, and where at least disbursement of ......% of the sanctioned amount is made.
(477/2020)
A) 10% B) 15% C) 25% D) 20%

53. As per Official Language Department, MHA, GOI the Town Official Language
Implementation Committees are to be constituted in all the towns of the country where
.....or more Central Government Offices are functioning. (478/2020)
A) 5 B) 15 C) 10 D) 20

CIBM, Manipal-Multiple Choice Questions – 2020 413

54. Town Official Language Implementation Committee meeting will be
conducted(478/2020)
A) 15 DAYS B) YEARLY C) MONTHLY D) HALF YEARLY

55. Government is insisting the employees to provide the details of joint account with
spouse ....... months prior to the retirement for the purpose of pension. (479/2020)
A) 6 B) 2 C) 3 D) 4

56. "Fund transfer facility allowed up to Rs..........between 0 to 6 hours from the time of new
beneficiary added through an Internet Banking (omnichannel/ Desktop version) as per
Enterprise Fraud Risk Management (EFRM) rules for safeguarding Internet Banking
Transactions (482/2020)
A) Rs 5000 B) Rs 50000 C) Rs 100000 D) Not allowed

57. "Fund transfer facility allowed up to Rs..........between 6 to 24 hours from the time of
new beneficiary added through an Internet Banking (omnichannel/ Desktop version) as
per Enterprise Fraud Risk Management (EFRM) rules for safeguarding Internet Banking
Transactions(482/2020)
A) Rs 5000 B) Rs 50000 C) Rs 100000 D) Rs 200000

58. Fund transfer facility allowed up to Rs..........after 24 hours from the time of new
beneficiary added through an Internet Banking (omnichannel/ Desktop version) as per
Enterprise Fraud Risk Management (EFRM) rules for safeguarding Internet Banking
Transactions (482/2020)
A) Rs 5000 B) Rs 50000 C) Rs 100000 D) Full limit

59. All payments to Jewel Loan Appraisers [for Jewel Loans to Customers] should be paid
only by debiting specific expense GL .............- Jewel Appraisal Fee. (Applicable to e –
Syndicate Branches only till integration of CBS) (483/2020)
A) 339140300 B) 339140200 C) 339140100 D) 339140500

60."Gold loans through Gold Purity Testing Machines (GPTM) can detect any foreign
element in the inner area of the ornament upto ........ micron depth only (484/2020)
A) 10 B) 30 C) 40 D) 20

CIBM, Manipal-Multiple Choice Questions – 2020 414

61. In accounts rated internally as High Risk (CIRM/ Manual Model/ Small Value Model), in
exceptional cases, review and extension of tenability of limits can be permitted only once
and for a period not exceeding......(500/2020)
a)1 month b)2 months c)3 months d)15 days

62. Revision of interests on Small Savings scheme occurs _________ (499/2020)

a) Quarterly b)Half Yearly c)Annually d)Monthly

63. The Product code for AGRI GOLD Loan-Development Activities for e syndicate Branches
in LAPS is (498/2020)
a) 840 b)841 c)839 d)842

64. The Product code for GL-OD for e syndicate Branches in LAPS is(498/2020)
a) 845 b) 846 c)847 d)848

65. All the staff members/Branches/Offices have to take up all the matters/grievances with
respective section of ____________only, through proper channel and not directly to
Head Office or through external authorities (497/2020)
a) Circle office b) Regional Office c) Head Office d) Inspection wing

66. ISAM scheme has been continued in FY 20-21.ISAM stands for(496/2020)

a) International Scheme for Agricultural Marketing
b) Integrated Scheme for Agricultural Marketing
c) Indigenous Scheme for All Markets
d) Indian Sector for Agriculture market

67. The ECAI rating shall be obtained from all the Borrowers who are enjoying credit
exposure (FB + NFB) of above (495/2020)
a) Rs. 10 cr b)Rs 5 cr c)Rs 2 cr d)Rs 50 cr

68. To reduce the customer complaints, the staff should have(494/2020)

a) Proper Product Knowledge b)Empathy towards customers
c)Courteous Behavior d)All of the above

69. As per Revised Definition on MSME effective from 01.07.2020, a Micro enterprise is,
where investment in P&M does not exceed______cr and turnover does not
exceed__________cr(492/2020)
a)1 &5 b)2 & 10 c)5 & 10 d)1& 10

CIBM, Manipal-Multiple Choice Questions – 2020 415

70. As per revised definitions of MSME,the calculation of investment in plant and machinery
or equipment will be linked to (492/2020)
a)GST Returns b)CA certificate
c)ITR of the previous years filed d)Estimation by Branch Manager

71. Fee for Filing Udyam registration under revised definition of MSME will be (492/2020)
a)Rs 500+GST b)Rs 100+GST c)Rs 1000+GST d) No fees

72. The Statutory Return-Part-I(STR Part-I) is to be submitted _______ and the Statutory
Return Part-II(STR Part-II) is to be submitted______(490/2020)
a)Quarterly & Quarterly b)Annually& Half yearly
c)Quarterly & Annually d)Annually & Quarterly

73. Reporting mechanism has been changed in our bank for QCC. QCC stands for (489/2020)
a) Quarterly compliance certificate b) Quality control certificate
c) Quality compliance certificate d) Quality certificate of controls

74. Floating Rate Savings Bonds,2020, the maximum limit for investment is (488/2020)
a)1 lakhs b)10 lakhs c)1.5 lakhs d) No limit

75. Floating Rate Savings Bonds, 2020, shall be repayable on the expiration of how many
years of date of issue? (488/2020)
a)5 years b)6 years c)7 years d)8 years

76. The Brokerage fixed for Banks for mobilizing Floating Rate Savings Bonds,2020 is
(488/2020)
a)0.25% b)1% c)0.75% d)0.50%

77. To activate a KYC Non -compliant account, approval from which authority is required?
(485/2020)
a) Branch Head b) Regional Head c) Circle Head d) Concerned Officer at Branch

78. The list of limits expiring in next 2 months through Business objects can be found in
report NO ..... (500/2020)
a) 280024 b)280023 c)280022 d)280021

CIBM, Manipal-Multiple Choice Questions – 2020 416

79. Penal charges for non submission of renewal papers before 1 month of expiry
date/extended tenability date, upto 10 lakhs (500/2020)
a) 5000+GST b) NIL c)10000+GST d)2500+GST

80. Among which of the small savings schemes, the compounding frequency is Quarterly
(499/2020)
a) Public Provident Fund Scheme b) Senior Citizen Savings Scheme
c) Kisan Vikas Patra d) Sukanya Samriddhi Account Scheme

81. Erstwhile SMERA, a rating agency is now named as(495/2020)

a) ICRA Ltd. (ICRA) b) INFOMERICS Valuation and Rating Pvt Ltd
c) ACUITE Ratings and Research Ltd d)CRISIL Ltd. (CRISIL)

82. The date of submission of QCC and snapshot at Branch level is before which date from
Quarter End (489/2020,728/2020)
a) 5th b) 4th working day c) 7th working day d) 15th

83. The Due Date of submission of STR-18 from SME Sulabhs to the concerned office is
within____from the quarter (490/2020)
a) 5th b)7th c)10th d)15th

84. For calculation of the turnover, under revised classification, the figures of such
enterprise which do not have PAN will be considered on self-declaration basis for a
period up to __________ (492/2020)
a)30th Dec20 b) 31st March, 2021 c)No Dates specified d)30th June 2021

85. ________________shall be required for Udyam Registration (492/2020)

a) Aadhar Number b) GSTIN c)PAN Card d)Voter Card

CIBM, Manipal-Multiple Choice Questions – 2020 417

 ANSWERE KEY FOR CIRCULARS 451/2020 to 500/2020
1 e 16 a 31 b 46 c 61 b 76 d
2 b 17 c 32 b 47 b 62 a 77 b
3 c 18 a 33 c 48 d 63 c 78 a
4 c 19 b 34 a 49 b 64 a 79 b
5 a 20 e 35 a 50 d 65 a 80 b
6 e 21 d 36 d 51 a 66 b 81 c
7 a 22 c 37 a 52 d 67 a 82 b
8 a 23 a 38 a 53 c 68 d 83 a
9 d 24 c 39 a 54 d 69 a 84 b
10 d 25 b 40 a 55 c 70 c 85 a
11 b 26 a 41 c 56 d 71 d 86
12 d 27 c 42 a 57 b 72 c 87
13 b 28 c 43 a 58 d 73 a 88
14 c 29 c 44 a 59 b 74 d 89
15 b 30 a 45 d 60 d 75 c 90

CIBM, Manipal-Multiple Choice Questions – 2020 418

 Circular based MCQ (501/2020 to 550/2020)
Cir 501/2020
Q.1 For the purpose of TDS on cash withdrawal a Customer is considered to be ITR
Compliant for a Financial Year in which cash withdrawal is made by the account holder, if
the ITR has been filed for
a. ANY of the three preceding F.Y for which the time limit to file return of income under sub-
section (1) of section 139 has expired
b. ANY of the three preceding F.Y for which the time limit to file return of income under
sub-section (1) of section 139 has not expired
c. ANY of the two preceding F.Y for which the time limit to file return of income under sub-
section (1) of section 139 has expired
d. ANY of the two preceding F.Y for which the time limit to file return of income under sub-
section (1) of section 139 has not expired

Cir 502/2020
Q.2. PM Street Vendor’s Atmanirbhar Nidhi (PM Svanidhi)” Scheme is available to
a. all street vendors engaged in vending in urban areas as on or before 24.03.2020
b. all street vendors engaged in vending in urban & rural areas as on or before 24.03.2020
c. all street vendors engaged in vending in urban areas as on or before 29.02.2020.
d. all street vendors engaged in vending in urban & rural areas as on or before 29.02.2020.

Q. 3. Urban Street Vendors will be eligible to avail a________________________ loan of

upto _____________with tenure of ________and repaid in monthly instalments.
a. Working Capital Demand Loan (WCDL), Rs 20000/-, 36 months
b. Working Capital OCC Limit, Rs. 10000/-, 36 months
c. Working Capital Term loan, Rs. 20000/-, 36 months
d. Working Capital Demand Loan (WCDL), Rs.10,000/-, 1 year

Q. 4 The scheme has a provision of Graded Guarantee Cover for the loans sanctioned, to be
administered by_________________, which will be operated on_________ basis
a. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), individual
account coverage
b. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), portfolio
c. MoHUA , portfolio
d. SIDBI, Individual account coverage

Q. 5.Presently ROI for PM SWANidihi Loan is

a. one year MCLR + 1.05% b. RLLR +1.05%
c. RLLR +1.55% d. One Year MCLR only

CIBM, Manipal-Multiple Choice Questions – 2020 419

Q. 6. On timely or early repayment, the vendors will be eligible for the next cycle of working
capital loan with an enhanced limit of a____________ of the earlier loan, subject to a
ceiling of ______
a. maximum of 200%, Rs20000/- b. maximum of 300%, Rs20000/-
c. maximum of 200%, Rs20000/- d. maximum of 200%, no ceiling

Q. 7. The vendors, availing loan under the PM SWANidhi scheme, are eligible to get an
interest subsidy ______. The interest subsidy is available up to________.
a. @ 7% , 31st March 2022b. @ 7% , 31st March 2023
c. @ 7.50% , 30th September 2022 d. No subsidy available

Q. 8. Product code for PM SWANidhi loan a/c is………….

a. 773 b. 743 c. 736 d. 711

Q. 9. The on-boarded vendors would be provided with monthly cash back on digital
transaction in the range of _______on fulfilment of criteria specified.
a. Rs50 - Rs100 b. Rs50 - Rs500
c. Rs100 - Rs500 d. Rs100 - Rs1000

Q. 10 . To qualify for incentive scheme on digital transaction the amount of each

transaction of_____will be counted.
a. Rs. 10/- b. Rs. 15/- c. Rs. 25/- d. Rs. 50/-

Q. 11. The on-boarded vendors would be provided with monthly cash back in the range
of Rs50 - Rs100 as per the criteria specified. Which of the following is not correct?
a. On executing 50 eligible transactions: Rs50;
b. On executing the next 50 eligible transactions: Additional Rs25;
c. On executing the next 100 eligible transactions: Additional Rs25
d. Each transaction > Rs50 will be counted

Cir 503/2020
Q. 12. Amount outstanding under SA will attract____ Risk Weight for Capital Adequacy
Ratio
a. 35% b. 75% c. 85% d. 100%

Q. 13. Amount outstanding under SA-Furniture & Fixtures (GL-122422160) for more than

CIBM, Manipal-Multiple Choice Questions – 2020 420

 ___ will attract _____ provision in the Balance Sheet.
a. 3 months , 100% b. 6 months, 100%
c. 6 months 50% d. No provision required , since it is a internal transaction.

Q. 14 Time-line for submission of documents for Capitalization to Head Office in case of

furniture & fixtures with in _______date of purchase/date of invoice/date of
installation.
a. 60 days b 45 days c 30 days d 15 days

Q. 15. Time-line for submission of documents for Capitalization to Head OfficeIn case of
Owned / Long Leased Properties with in______days from the Date of Registration in
case of New Properties and _______days from the Date of Final payment in case of
Repairs / Renovations.

a. 30, 45 b. 45, 45 c. 45, 30 d. 30,30

Cir 504/2020

Q.16 Floating Rate Savings Bonds, 2020 (Taxable)- FRSB 2020 (T)- bonds shall be
repayable in
a. 5 Years b. 5 ½ years c. 7 years d. 8 years

Cir 505/2020

Q. 17. Agency commission for pension payment per transaction is

a. Rs 45/- b. Rs. 55/- c. Rs. 65/- d. Rs. 75/-

Q. 18 Agency commission for other than pension payment per transaction is

a. 6.5 paisa per Rs 100 b. 6 paisa per Rs 100/-
c. 7.5 paisa per Rs 100d. 6.5 paisa per Rs 1000/-

Q. 19 Agency commission for Govt. Receipts for physical receipts is ____ and for e-
mode is ____ per transaction
a. Rs.45/-, Rs. 11/- b. Rs. 40/-, Rs 9/-
c. Rs. 55/-, Rs 11/- d. Rs. 55/-, Rs. 9/-

Cir. 508/2020
Q. 20. Offsite monitoring should be done at the ______ (For Loans of less than Rs. 10

CIBM, Manipal-Multiple Choice Questions – 2020 421

 Crore sanctioned against a bulk term deposit) and _____ (For Loans of Rs. 10 Crore &
above).
a. OTM & IF section RO , BS & IC section CO
b. BS & IC section CO , BS & IC section CO
c. BS & IC section CO, OTM Cell Insp Wing HO
d. OTM cell Insp wing HO, OTM Cell Insp wing HO

Cir. 509/2020
Q. 21. Total no of OTM report is
a. 26 b . 23 c.22 d. 21

Q. 22 As per the directions of Audit Committee of the Board, with respect to OTM
Assigned transactions, 'NO observation should remain unattended for more than ___
days.
a. 15 b. 7 c. 5 d. 3

Cir 510/2020.
Q. 23 . Risk Weights for Credit facilities(GECL) extended under Emergency Credit Line
Guarantee Scheme (ECLGS) to the extent of guarantee coverage is
a. 0% b. 15% c. 20% d. 35%

Cir 515/2020
Q. 24. BG progress report shall be obtained and reviewed for all Performance / Advance
payment Guarantees of_____ and above where guarantee period is more than____.

a. 2 lakhs, 3 months b. 2 lakhs, 6 months

c.5 lakhs, 3 months d. 5 lakhs, 6 months

Q. 25 Bank Guarantee Progress report shall be monitored at _______ intervals after

completion of ________ from the date of issuance of guarantee.
a. monthly, 3 months B. quarterly, 3months
C. monthly, 6 months D. Quarterly, 6 months

Cir. 520/2020
Q. 26. At present ROI on 63 months NND is :
a. 3.10 % b. 2% c. 1.5% D. 1%

Cir. 522/2020
Q. 27. Which of the following option is not correct
a. Branches having NPA levels of more than 3% under any Retail lending schemes,

CIBM, Manipal-Multiple Choice Questions – 2020 422

 (other than Canara Budget) and 2% under Canara Budget Scheme have no powers to
sanction the loans under these schemes.
b. Branches having NPA levels of more than 5% under any Retail Lending Schemes have
NO powers to sanction the loans under these schemes.
c. The above proposals have to be sanctioned by AGM-RO-CAC and above Authorities up
to their respective Delegated Powers
d. Circle Heads are authorized to permit select Branches to sanction Retail Loans despite
their NPA under Retail Loans being more than embargo level

Q. 28 . As per recent modification where ever Special packages permitted by the circle
offices under canara budget Waiver of undertaking letter from Employer Not to Shift
Salary Account on selective basis wherever Salary Accounts are maintained can be
permitted by
a. RO-Head CAC b. Circle Head CAC
c. CGM/GM-HO-CAC d. ED-CAC

Cir. 523/2020
Q. 29. Which of the following is not correct with regard to GECL loan
a. No Personal guarantee to be taken
b. No Third party guarantee to be taken
c. No Corporate guarantee to be taken
d. only extension of previously furnished guarantee to be taken

Cir. 525/2020
Q. 30.Under Rule 8 (1) of Prevention of Money Laundering (Maintenance of Records)
Amendment Rules, 2013, Principal Officers of banks are required to report
information on cash transactions where forged notes have been detected to The
Director, FIU-IND, Financial Intelligence Unit- India, by the _____ of the succeeding
month
A. 3rdday B. 7th day C. 10th day D. 15th day

Q. 31. For cases of detection of Counterfeit Notes of_____ , in a single transaction, the
Counterfeit Notes should be forwarded immediately by the Nodal Bank Officer to the
local police authorities or the Nodal Police Station for investigation by filing FIR in the
prescribed format
a. 4 or more pieces b. 5 or more pieces
c. 3 or more pieces d. any no of forged note detected,

Cir. 526/20
Q. 32 Penalty levied on Shortages in soiled note remittances and currency chest balances
for notes in denomination up to Rs 50/-

CIBM, Manipal-Multiple Choice Questions – 2020 423

a. Rs. 50/- per piece in addition to the loss
b. Rs. 50/- per piece maximum Rs. 500/-
c. Rs. 25/- per piece in addition to the loss
d. Rs.100/- per piece in addition to the loss

Q. 33. Penalty levied on Shortages in soiled note remittances and currency chest
balances for notes in denomination of Rs 100/- & above.
a. Rs.100/- per piece in addition to the lossb. Rs.100/- per piece maximum Rs 10000/-
c. Rs.50/- per piece in addition to the loss
d. Equal to the value of the denomination per piece in addition to the loss.

Q. 34. Penalty levied on Mutilated notes detected in soiled note remittances and
currency chest balances
a. 50/- per piece irrespective of the denomination
b. Rs. 50/- per piece maximum Rs. 500/-
c. Rs.100/- per piece maximum Rs 10000/-
d. Rs.100/- per piece irrespective of the denomination

Q. 35. Penalty on non functioning of CCTV in currency chest detected by RBI officials,
which statement is not correct?
a. Penalty of Rs 5000 for each irregularity.
b. Penalty will be enhanced to Rs 10,000 in case of repetition.
c. Penalty will be levied immediately
d. Penalty will be levied with in one month.

Q. 36 Penalty on Branch cash/documents kept in strong room detected by RBI officials ,

which is not correct?
a. Penalty of Rs 5000 for each irregularity. b. Penalty will be enhanced to Rs 10,000
in case of repetition. c. Penalty of Rs 2500 for each irregularity d. Penalty will be
levied immediately

Q. 37. Deficiency observed in terms of RBI guidelines, refusal by any bank branch to
exchange soiled notes / refusal by any currency chest branch to adjudicate mutilated
notes tendered by any member, penalty levied as, which is the correct answer
i. Rs. 5000/-per instanceii. Rs. 10000/- per instance
iii. 5 lakh in case there are more than 5 instances of violation/deficiency in service by the
branch.
iv. The levy of such penalty will be placed in public domain.
a. Only ii b. i, iii, iv c. ii, iii, iv d. i & iii

CIBM, Manipal-Multiple Choice Questions – 2020 424

Q. 38. Appeal against the decision of the Competent Authority regarding nature of
irregularities and levied of penalty may be made by the Controlling Office of the
currency chest/branch to the Regional Director/Chief General Manager/Officer-in-
Charge of the Regional Office concerned, within ____ from the date of debit, who may
decide whether the same can be accepted/ rejected.
A. 7 days b. 15 days c. One month d. 3 month

Cir 527/2020
Q. 39. In terms of RBI guidelines on exchange of Soiled Notes, soiled notesshould be
exchanged free of charge over the counter presented by a person up to
________pieces with a maximum value of _____ per day.
a. 10 , Rs 1000 b. 20, Rs 1000 c. 10,RS 1000 d. 20. Rs
5000

Q. 40. As per RBI NRR 2009 a soiled note is , which is not correct?
i. a note which has become dirty due to normal wear and tear
ii. must be in single piece with no essential feature missing
iii. includes a two piece note pasted together wherein both the pieces presented belong
to the same note
iv. and form the entire note with no essential feature missing
a. Only ii b. Ii & iii c. only iv d. ii & iv

Cir. 530/2020
Q. 41. As per modified guidelines of NTH should not less than____of gross salary for two
wheeler loan for our employee is
a. 25% b. 30% c. 25% or Rs. 12000 whichever is higher d. 40%

Q. 42. Maximum quantum of loan amount in case of supplemental housing loan to

employee
a. Rs.7.5 lakhs b. Rs. 10 lakhs c. Rs. 12 lakhs d. scheme discontinued

Cir. 532/2020
Q. 43. “TAB Banking” which option is not correct?
a. Instant Saving Account Opening for Prospective Individual Customers through Tablet
without visiting the Branch.
b. Banking at Customer’s Doorstep Now
c. Online authentication of AML Checks, Aadhar Details and PAN details
d. Customer can open his/her Saving account by self using his own tab any time as per
his convenient .

CIBM, Manipal-Multiple Choice Questions – 2020 425

Q. 44. “TAB Banking” which option is not correct?
a. Personalized cheque book will be indented automatically
b. Instant activation of Internet, Mobile Banking and Debit Cards.
c. Marketing Officer will facilitate opening of account by visiting customer’s place
d. Welcome Kit will be delivered to customer’s address after opening of account through
TAB.

Cir 535/2020
Q. 45. As per modified DOP For fresh/additional exposure in respect of Moderate Risk
Accounts under CRE-RH, proposals shall be placed before _______ and above
authorities, upto their respective delegated powers.
a. ED-CAC b. CGM/GM-HO-CAC c. CO Head CAC d. RO Head CAC

Q. 46 . As per modified DOP for enhancement/additional limit in existing High Risk

accounts under CRE-RH, proposals will fall under power of _____ and above
authorities upto their respective delegated powers.
a. ED-CAC b. CGM/GM-HO-CAC c. CO Head CAC d. RO Head CAC

Cir 536/2020
Q. 47. FDB/FBE/BRD extension can be done , beyond sanctioned period and/or 15
months, for the period of ______ at a time
a. 1 month b. 3 month c. 6 month d. 270 days

Cir 537/2020
Q. 48. As per revised delegation of power for settlement of death claim, Powers of
Executive in scale IV in ROs is upto _______and for Executives in Scale V in ROs/
heading ROs is upto ________.
a. 5 lakhs, 10 lakhs b. 3 lakhs, 5 lakhs
c. 5 lakhs, 15 lakhs d. 3, lakhs, 8 lakhs

Cir. 538/2020
Q. 49. Branches should use “Simplified loan application form” approved by
_________for loan under PM SWANidhi scheme.
a. MoHUA b. SIDBI c. NABARD d. RBI

Cir. 544/2020
Q. 50. Standby credit in respect of export credit for accounts rated as High Risk can be
permitted by
A. ED-CAC B. CAC of the Board
C. CGM/GM HO CAC D. CO Head CAC

CIBM, Manipal-Multiple Choice Questions – 2020 426

Q. 51. In respect of Canara Vehicle Loans to business concerns loan can be considered by
the respective sanctioning authority as per the scheme notwithstanding that their
other credit facilities fall under the sanctioning powers of a higher authority, provided
the account is rated up to _________ Internally
a. Low Risk b. Normal Risk
c. Moderate Risk d. irrespective of risk grade

Q. 52. Issuance of Bank Guarantees with automatic renewal clause can be permitted by
______ and above authorities up to their delegated powers.
a. RO- Head-CAC b. CO-Head CAC
c. AGM/DGM of ELB d. CGM/GM-HO-CAC

Cir 545/2020
Q. 53. For NRI/OCI/PIO students EL can be considered for pursuing Education_____ if
student is an Indian Passport holder and meeting all eligible criteria
a. In India only b. In abroad only
c. Anywhere in India or abroad d. cannot be sanctioned

Cir. 546/2020
Q. 54. With regard to Interest subvention on PMMY Shishu loan , which is not correct?
a. interest subvention will be given @ 2% b. A/c should not be NPA as on 31/03/20
c. The scheme will be for a period of 12 months d. Max. Loan amount is Rs 1 lakh
only

Cir. 547/2020
Q. 55. For existing Debit & Credit cards, International usage/online usage/contactless
functionality are disabled where the cards have not been successfully used at least
once for the respective functionality in the past ________.
a. 3 months b. 6 months c. 9 months d.12 months

Q. 56. As a risk mitigating step all new Debit card/ Credit card will be enable at the time
of issuance for ________and____________only
a. ATM & POS only
b. ATM & contactless usage only
c. POS & Online usage only
d. ATM & Online usage only

Cir 548/2020
Q. 57. In order to bring uniformity while requesting for disbursement of loans by our
borrowers, a new Form – ______ – Disbursement request format for loans” is
introduced for use of our Branches for all types of loans.
a. NF 1011 b. NF 993 C. NF 1111 D. NF 1024

CIBM, Manipal-Multiple Choice Questions – 2020 427

Cir. 549/2020
Q. 58. Regarding Opening of Saving Bank A/c of a SHG, which is not correct
a. CDD of all members of SHG required
b. CDD of office bearers only required
c. No separate CDD of the members or office bearers shall be necessary at the time
of credit linking of SHG
d. All are correct

Answer keys for Circular 501/2020 to 550/2020

1 a 2 a 3 d 4 b 5 b

6 d 7 a 8 d 9 a 10 c
11 d 12 d 13 b 14 a 15 d
16 c 17 d 18 a 19 b 20 c
21 a 22 b 23 a 24 d 25 d
26 a 27 a 28 c 29 d 30 d
31 b 32 a 33 d 34 a 35 d
36 c 37 c 38 c 39 d 40 a
41 b 42 d 43 d 44 d 45 b
46 a 47 c 48 a 49 a 50 b
51 c 52 b 53 a 54 d 55 a
56 a 57 d 58 a

CIBM, Manipal-Multiple Choice Questions – 2020 428

 Circular based MCQ (551/2020 to 600/2020)
1) The maximum repayment period for Swarna –Express loan is
a) 12 months
b) 6 months
c) 3 months
d) 24 months

2) Minimum amount that can be lent under Swarna Overdraft is Rs

a) 20 lakhs
b) 2 lakhs
c) 5000/- Rs
d) 10 lakhs

3) The enhanced LTV ratio is applicable under Swarna OD and Express for the loans
sanctioned up to
a) 31-12-2020
b) 31-03-2021
c) 31-03-2022
d) 01-03-2021

4) While enhancement is permitted in Swarna OD limit with additional securities of Gold

then the reappraisal of
a) All the jewels pledged to be done
b) Only the fresh additional gold to be done
c) No need of appraisal at all
d) None of the above

5) Processing charges applicable to Swarna Express loan is

a).50% of the Loan amount (Minimum of Rs.500/- and Maximum of Rs. 5,000/-)
b) 50% of Charges applicable to Swarna loans
c) 1% of the loan amount
d) .75 % of loan amount

CIBM, Manipal-Multiple Choice Questions – 2020 429

6) Dishonour of electronic fund transfer instructions (ECS mandate)under insufficiency of
funds are available under section
a) section 138 of Negotiable Instruments Act,1881
b) Not available under any section
c) Section 25 of Payment and Settlement Act, 2007
d) As per ACH mandate regulation.

7) In case of C and D category street vendors (SV) disbursement of loan shall be made only
after application
a) Online verification /Confirmation from ULB under CAIS stage
b) Appear in Completed Application information section in UMP
c) After obtaining all documents of KYC
d) None of the above

8) The PM svanidhi loans are eligible for an Interest subsidy of ….%

a) 4%
b) 3%
c) 2%
d) 7%

9) The accounts of PM svanidhi loans are to be covered under

a) CGTMSE
b) CGFMU
c) CGSVANIDHI
d) ECLGS

10) The credit guarantee fee foe PM Svanidhi loans is

a) 0.25%
b) 0.5%
c) 0.10%
d) No Guarantee fee

11) The LTV ratio for CRE- Residential housing loan is

a) 75
b) 50
c) 100
d) NA

CIBM, Manipal-Multiple Choice Questions – 2020 430

12) The Aadhar numbers of PMAY beneficiaries in case of Joint borrowal account is to be fed
only in respect of
a) All Joint Borrowers
b) Only the main borrower having paying capacity
c) Only of the Female Borrower
d) All the Borrowers having Paying capacity

13) The Guarantee premium for Educational loans to be covered under CGFSEL is
a) 1%
b) .75%
c) 0.5%
d) NIL

14) The Guarantee premium amount of CGFSSD is borne by

a) The Bank
b) The Borrower
c) The Government
d) No fee

15) The CCTV footages of ATM lobby is to be stored for a minimum of …. Days from the date
of transactions
a) 180
b) 90
c) 120
d) 30

16) The CCTV images of the disputed transactions are to be preserved for
a) 90 days
b) Till the final settlement or 90 days whichever is later
c) 3 years
d) 8 years

17) The maximum entry age of the Borrower for availing Housing loan from our Bank is
a) 70 years
b) 70 to 80 Years
c) No restriction subject to sanction by appropriate delegated authority
d) 75 years

18) Ever year one month in each ……… is observed as SHG Credit linkage month
a) Quarter
b) Half year
c) Year
d) None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 431

19) All penalty entries under SA- Penalty shall be eliminated within …. Days of payment of
the penalty
a) 180
b) 270
c) 90
d) 30

20) Guarantee fee for Credit Guarantee scheme for subordinated debt is …. % of out
standing amount
a) 1.8
b) 1
c) 0.75
d) 1.5

21. For Invocation of claims for the Education Loan accounts covered under the Credit
Guarantee Fund Scheme for Education Loans (CGFSEL) of M/s NCGTC, branches have to
update/generate the list of accounts from ______
a. Business Objects
b. SAS-CGFSEL
c. CLAPS
d. Native Reports

22. For updation of course completion date & other details of student beneficiaries under
Dr.Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loan, the
branches have to key in the details in ________
a. CBS
b. CLAPS
c. MoSJE Portal
d. SAS-ACSISOBCEBC

23. What is the full form of AMI

a. Amazon Machine Images
b. Area Median Income
c. Agricultural Marketing Infrastructure
d. Agricultural Marketing Institution

CIBM, Manipal-Multiple Choice Questions – 2020 432

24. Maximum permissible period for pre-shipment export credit is restored to___
a. 1 year
b. 15 months
c. 270 days
d. 6 months

25. The Consumer Disputes Redressal Forum has been recently (2019) renamed as
a. Consumer Production Act
b. Consumer Protection Act
c. Consumer Disputes Redressal Commissions
d. Customer Disputes Redressal Corporation.

26. What is the Pecuniary Jurisdiction for claiming the compensation under National
Consumer Disputes Redressal Commission under 2019 Act?
a. Upto Rs.20 Lakhs
b. Above Rs.20 Lakhs upto Rs.1 Crore
c. Above Rs. 1 Crore
d. Above Rs. 10 crores

27. Who is the Appellate Authority for appeals against order of District Consumer Disputes
Redressal Commission within 45 days from date of order?
a. Supreme Court of India
b. National Consumer Disputes Redressal Commission
c. State Consumer Disputes Redressal Commission
d. High Court of the District.

28. One of the Eligibility Criteria for availing Guaranteed Emergency Credit Line (GECL) is,
where borrower account is less than or equal to :
a. 60 days past due as on 29.02.2020
b. 60 days past due as on 31.03.2020
c. 30 days past due as on 29.02.2020
d. 30 days past due as on 31.03.2020

29. What is the maximum loan amount under PM SVANidhi Scheme ?

a. Rs. 15000/-
b. Rs. 8500/-
c. Rs. 25000/-
d. Rs. 10000/-

CIBM, Manipal-Multiple Choice Questions – 2020 433

30. Restructuring of MSME borrowal accounts as per RBI Circular dated 06.08.2020 should
be implemented by
a. March 31, 2021
b. March 21, 2021
c. Dec 31, 2020
d. Dec 31, 2021

31. How many instalment claims have to be settled by CGTMSE under New Recovery
Module to update recovery details and to make payment of recoveries to CGTMSE
Online?
a. 2 instalments
b. 1 instalments
c. No such condition
d. 3 instalments

32. Maximum Loan quantum of GECL funding for all business enterprises/MSME
institutional borrowers/ Loans provided to individuals for business purposes is
a. 20% of Rs. 50 crores
b. 20% of Rs. 250 crores
c. 10% of Rs. 50 crores
d. 10% of Rs. 250 crores.

33. GECL is implemented by

a. IFCI
b. NBCFDC
c. NCGTC
d. SIDBI

34. Non opening of Branch batch due to network issues has to be reported to Circle Head
on daily basis by___
a. GA Section
b. MIPD Section
c. Branch itself
d. TM Section

CIBM, Manipal-Multiple Choice Questions – 2020 434

35. Mr. Ram is enjoying credit facilities in the form of Cash Credit in one of our branch who
is a long standing customer and is financially very sound. Now, he has approached for
opening Current account in the same branch. What is your view?
a. Definitely can be opened
b. Since OCC account exists, should not open
c. Can open since long standing customer
d. As per Customer retention policy, to be opened.

36. Branches mapped to RAHs having delinquency rate of more than ___% under any
Mortgage based loans have NO powers to sanction loans.
a. 2
b. 3
c. 4
d. 5

37. Credit sanctions by Manager/Sr. Manager of RAHs are eligible to sanction loans upto
Rs._______
a. 10 lakhs
b. 25 laksh
c. 75 lakhs
d. No Power

38. What is the turn around time for disposal of loan applications under PMEGP scheme for
loan quantum above Rs. 5 lakhs and loan quantum upto Rs. 5 lakhs?
a. Within 30 days and within 15 days respectively
b. Within 15 days and within 30 days respectively
c. Within 4 weeks and within 2 weeks respectively
d. Within 2 weeks and within 3 weeks respectively

39. Under Insolvency & Bankruptcy Code for 2020-21, what is the minimum default amount
to proceed against a corporate defaulter?
a. Rs. 100000/-
b. Rs. 1000000/-
c. Rs. 10000000/-
d. Rs. 100000000/-

CIBM, Manipal-Multiple Choice Questions – 2020 435

40. For initiating measures under the IBC code 2016, the borrowal account should have
been classified as a non performing asset in the books of a Financier. True or False?
a. True
b. Cant Say
c. False
d. Dont Know.
Answer keys for Cir 551/2020 to 600/2020
1 2 3 4 5 6 7 8 9 10
b c b a b a a d a d
11 12 13 14 15 16 17 18 19 20
d a c a b b c a c d
21 22 23 24 25 26 27 28 29 30
b d c a c d c a d a
31 32 33 34 35 36 37 38 39 40
b a c d b d d a c c

CIBM, Manipal-Multiple Choice Questions – 2020 436

 Circular based MCQ (601/2020 to 650/2020)
1. The CIR process under the IBC 2016 can be triggered in the event a Corporate Person commits a
default in respect of debt for Rs (600/2020)
a. One Lac or More
b. Ten Lac or More
c. One Crore Or More
d. Ten Crores or More

2. The CIR process cannot be initiated by ________by filing an application before the
NCLT(600/2020)
a. Financial creditors
b. Operational creditors
c. By the corporate itself
d. Preferred Creditors

3. Canara Vidyajyothi Scheme is to provide financial assistance to (601/2020)

a. Girl Student having from any community
b. Physical Handicap students
c. Girl Student from SC/ST community
d. Male student from SC/ST community

4. What is the brokerage for Floating Rate Savings Bonds 2020 (Taxable)-RBI Bonds-(602/2020)
a. 0.50 paisa per Rs 100.00
b. 0.10 paisa per Rs 100.00
c. 0.75 paisa per Rs 100.00
d. 0.25 paisa per Rs 100.00

5. All Food & Agro Processing industries classified under Agriculture-Ancillary upto 100 Cr linked
to(609/2020)
a. Base Rate
b. MCLR
c. BPLR
d. RLLR

6. To improve ranking of the Bank under EASE 3.0 following area is not been considered (605/2020)
a. NPA and Slippage Management
b. Digital Banking
c. Customer Service
d. Expansion of Branch

CIBM, Manipal-Multiple Choice Questions – 2020 437

7. Rate of Interest on Saving Bank Deposits for outstanding balance less than 50 lakh(606/2020)

a. 4.00 %
b. 3.50 %
c. 2.90 %
d. 2.75 %

8. Rate of Interest on Saving Bank Deposits for outstanding balance of Rs 300 Cr to less than 500
Cr.(721/2020)
a. 4.00 %
b. 3.50 %
c. 2.90 %
d. 3.05 %

9. The existing system of calculation of interest on daily product basis and not to be credited to the
SB accounts on (606/2020)
a. 1st February
b. 1st August
c. 1st November
d. 15 September

10. What is maximum amount of back end subsidy under PM Micro Food Processing Enterprises
Scheme (PM FME) ?(608/2020)
a. 35% of project cost with maximum amount of Rs. 10 Lakhs
b. 25% of project cost with maximum amount of Rs. 35 Lakhs
c. 15% of project cost with maximum amount of Rs. 20 Lakhs
d. 30 % of project cost with maximum amount of Rs. 50 Lakhs

11. How much margin for Working Capital is required for SHGs having experience in One District
One Product(ODOP) food processing?(608/2020)
a. 10 %
b. 15 %
c. 20 %
d. 25 %

12. What is the objective of PM Micro Food Processing Enterprises Scheme (PM FME)? (608/2020)
a. To establish new Food Processing industry
b. Up-gradation of existing food processing activities
c. Promote SHGs engaged in food processing with minimum Experience of 2 years
d. Encourage Individual enterprises employ more than 10 employees in food processing.

13. What is money margin requirement for Medium enterprises require Term loan under Animal
Husbandry Infrastructure Development Fund (AHIDF)(609/2020)
a. 10 %
b. 15 %
c. 20 %
d. 25 %

CIBM, Manipal-Multiple Choice Questions – 2020 438

14. When a loan sanctioned under Animal Husbandry Infrastructure Development Fund (AHIDF)
scheme, borrower is eligible for interest subvention at the rate of (609/2020)
a. 3 % Interest subvention sanctioned loan
b. 4 % Interest subvention sanctioned loan
c. 5 % Interest subvention sanctioned loan
d. 2% Interest subvention sanctioned loan

15. Ceiling for Credit Guarantee for project under Animal Husbandry Infrastructure Development
Fund (AHIDF) scheme(609/2020)
a. 25 % of credit facility
b. 35 % of credit facility
c. 85 % of credit facility
d. 75 % of credit facility

16. Type of loan facility given to the borrower under Animal Husbandry Infrastructure Development
Fund (AHIDF) scheme(609/2020)
a. Term Loan
b. Working capital
c. Composite loan
d. 80 % Term Loan and 20 % Working capital

17. Interest Subvention Scheme for financing under Agriculture Infrastructure Fund(AIF) is limited
to 2.00 Cr for a period of (610/2020)
a. 10 years
b. 8 years
c. 7 years
d. 5 years

18. Cost of coverage for covering loan under CGTMSE uptoRs 2.00 Cr for financing under Agriculture
Infrastructure will be borne by(610/2020)
a. Applicant
b. 50 % by applicant and rest by the government
c. 50 % by applicant and rest by the Bank
d. Government

19. Loan sanctioned under Agriculture Infrastructure Fund for a period of 7 years is
payable(610/2020)
a. Quarterly
b. Half yearly
c. Monthly
d. Principal amount monthly and interest yearly

CIBM, Manipal-Multiple Choice Questions – 2020 439

20. What is minimum and maximum moratorium allowed for loan under Agriculture Infrastructure
Fund (610/2020)
a. 3 and 6 months respectively
b. 6 and 12 months respectively
c. 12 and 24 months respectively
d. 6 and 24 months respectively

21. Guarantee Emergency Credit Line(GECL) under which guarantee is provided by (613/2020)
a. CGTMSE
b. NABARD
c. SIDBI
d. NCGTC

22. Coverage of guarantee under Guarantee Emergency Credit Line(GECL) to Member Lending
Institutes is limited to(613/2020)
a. 10 Lakh crore
b. 3 Lakh crore
c. 5 Lakh crore
d. 7 Lakh crore

23. A borrower is eligible to get credit facility under Guarantee Emergency Credit Line(GECL) that is
up to(613/2020)
a. 20 % of the borrower’s total outstanding credit as on 29th February 2020
b. 15 % of the borrower’s total outstanding credit as on 29th February 2020
c. 25 % of the borrower’s total outstanding credit as on 29th February 2020
d. 30 % of the borrower’s total outstanding credit as on 29th February 2020

24. Total guarantee coverage of credit sanctioned under Guarantee Emergency Credit Line(GECL)
(613/2020)
a. 100% credit
b. 80 % credit
c. 75 % credit
d. 80 % credit

25. Form for Handing over & Taking over charge of branch (614/2020)
a. NF-676
b. NF-677
c. NF-689
d. NF-678

26. RO/CO shall review the charge taking over report in SAS package within (614/2020)
a. 7 days
b. 15 days
c. 30 days
d. 45 days

CIBM, Manipal-Multiple Choice Questions – 2020 440

27. Handing over & Taking over charge of branch on transfer , Form NF – 678 is to be obtained in
(614/2020)
a. Duplicate
b. Triplicate
c. Single copy
d. Four copies

28. Electrical Audit of the branches and administrative offices be carried out periodically (615/2020)
a. Once in a year
b. Once in 2 years
c. Once in 3 years
d. Once in 5 years

29. LTV(Loan to Value Ratio) for Gold loan against jewellery to Agriculturist shall not
exceed(612/2020)
a. 80 % of appraised value
b. 75 % of appraised value
c. 70 % of appraised value
d. 85 % of appraised value

30. How much LTV(Loan to Value Ratio) to be maintained during the entire loan period (611/2020)

a. 80 % of appraised value
b. 75 % of appraised value
c. 70 % of appraised value
d. 90 % of appraised value

31. When the Constituent Assembly adopted the Hindi language written in Devanagari
script as the official language of India? (616/2020)
a. On 15 September 1949
b. On 15 September 1950
c. On 14 September 1949
d. On 14 September 1950

32. According to Rule 12 of the Official Language Rules 1976, it is the responsibility whom to ensure
compliance with the Official Language Act 1963? (616/2020)
a. All Staff
b. Deputy Branch Manager
c. All Officers in the Branch
d. Heads of the Office

33. What is the target for Region B for Hindi/bilingual correspondence? (616/2020)
a. 65%
b. 80%
c. 90%
d. 100%

CIBM, Manipal-Multiple Choice Questions – 2020 441

34. What is the name of the Program of our Bank through which Employees who do not have
working knowledge in Hindi can acquire the same? (616/2020)
a. CanBank Hindi PatracharPathyakram
b. CanBank Hindi PravinPathyakram
c. CanBank Hindi Sahay Pathyakram
d. CanBank Hindi PragatiPathyakram

35. What is the full form of CoV in "CoV/ID card" issued by Urban Local Body (ULB) to Street
Vendors? (617/2020)
a. Certificate of Vending
b. Certificate of Verification
c. Certificate of Not affected with Virus
d. COronaVIrus Disease

36. What is mandatory to avail the Interest Subsidy under the scheme PM Street Vendor’s
AtmaNirbharNidhi (PM SVANidhi) for Street vendors? (617/2020)
a. Account No
b. IFS Code
c. Local Address
d. Virtual Payment Address

37. It was stipulated that in terms of COVID-19 Regulatory Package, a notice had to be sent to the
customers who had opted for moratorium duly informing them about the deferment of
installment / interest. It was further stipulated that a copy of such notice shall be ---------------------
----. (618/2020)
a. sent to guarantor also.
b. kept with the loan papers
c. sent to RO.
d. sent to CO.

38. For confirming the rating of proposals under CBPR (GO/NO GO) Committees at H.O have been
formed. Who among the below is not the member of Executive Committee I? (619/2020)
a. DGM, CAM Wing.
b. DGM Overseeing CBPR Section, R M Wing.
c. Executive overseeing CBPR section, RM Wing.
d. Executive overseeing IRMD section, RM Wing.

39. For confirming the rating of proposals under CBPR (GO/NO GO) Committees at H.O have been
formed. Who among the below is not the member of Executive Committee II? (619/2020)
a. DGM overseeing CBPR section, R M Wing
b. DGM of CAM Wing
c. Executive overseeing IRMD section
d. AGM/DM, CAM Wing.

CIBM, Manipal-Multiple Choice Questions – 2020 442

40. Which loan proposals are not excluded from the scope of CBPR (GO/NO-GO)? (619/2020)
a. Canara Credit Support to Covid 19 affected Customers
b. Emergency Credit Line Guarantee Scheme (ECLGS)
c. MSME proposals with exposure between Rs. 10-15 crore
d. GECL for eligible business enterprises/ MSME borrowers

41. Forensic Auditors’ Empanelment Committee has empanelled the Chartered

Accountants/Auditor Firms as Forensic Auditors which is enclosed as Annexure-1 to Cir 620/2020.
Branches/ Offices to obtain which document from empanelled Chartered Accountants/Auditor
Firms as Forensic Auditors at the time of entrusting the work ? (620/2020)
a. Affidavit
b. Id Proof
c. Empanelment Certificate
d. None of the above

42. The tenure of Forensic Auditor empanelled as per cir 620/2020 shall be for a period of -----
years. (620/2020)
a. 1
b. 2
c. 3
d. till removed from list.

43. Bank has entered into tie up arrangements with Two Fin Tech Companies for identifying
uncovered/under covered Micro and Small Enterprises (MSE) beneficiaries for ---. (Which of the
below statement is not correct)
a. Sourcing of Application
b. Sanctioning of Application
c. Post Disbursement Monitoring,
d. Follow up for Recovery

44. Under Tie Up arrangements with Fin-Tech Companies (M/s. Basix Sub-K iTransactions Ltd. and
M/s Atyati Technologies Pvt Ltd.) the Fin Tech companies will ---. (Which of the below statement
is not correct)
a. Source eligible MSE proposals
b. Proposals up to and inclusive of Rs.1,00,000.
c. Obtain application and other required documents.
d. Conduct KYC, Due Diligence and credit verification check

45. What is the name of MSME Product for the loan proposals sourced under Tie Up arrangements
with Fin-Tech Companies?
a. MSME DHANAM
b. MSME JANAM
c. MSME TARANG
d. MSME SUGAM

CIBM, Manipal-Multiple Choice Questions – 2020 443

46. Existing Product Codes for Working Capital Term Loan (WCTL) for e-Syndicate Branches is “945”-
for opening Loan accounts sourced under the Tie-Up arrangement. What is the corresponding
product code for Canara Bank Branches?
a. 751
b. 752
c. 753
d. 755

47. Who will be paying the service charges to the Fin-Techs under the Tie Up arrangement.
a. Branch
b. RO
c. CO
d. HO

48. What is the Repayment period of MSME SUGAM

a. More than 12 months upto 24 months
b. More than 12 months upto 36 months
c. More than 12 months upto 60 months
d. More than 12 months upto 72 months

49. Entrepreneurship Development & Employment Generation (EDEG) component of National

Livestock Mission will NOT include
a. Poultry Venture Capital Fund (PVCF)
b. Integrated Development of Small Ruminants and Rabbit (IDSRR)
c. Pig Development (PD)
d. Salvaging of Cows (SoC)

50. The subsidy received from NABARD under National Livestock Mission – EDEG Component, to be
parked in SL-subsidy received GL in CBS or kept as
a. Fixed deposit with 0% interest.
b. Fixed deposit with regular interest.
c. Fixed deposit with interest equal to ROI of Loan, so that effective interest will become zero.
d. None of the above

51. Repayment period for Poultry Venture Capital Fund (PVCF) is maximum under National Livestock
Mission – EDEG Component and that is
a. 7 Years
b. 8 Years
c. 9 Years
d. 10 Years

52. Minimum margin required for loan sanctioned under Entrepreneurship Development &
Employment Generation (EDEG) component of National Livestock Mission is
a. 0%
b. 5%
c. 10%
d. 15%

CIBM, Manipal-Multiple Choice Questions – 2020 444

53. Monetary limits and delegation for examining the Staff Accountability in Non Credit Matters.
Which of the following is CORRECT?
a. Amount involved upto Rs.5 Crores at RO.
b. Amount involved above Rs.5 Crores at CO.
c. Amount involved upto Rs.5 Crores at CO.
d. Amount involved above Rs.5 Crores at CBI.

54. How many reward point/s is/are been granted by our Bank for a credit card spend of Rs 100/- ?
a. 1
b. 2
c. 3
d. 5

55. What is the new product code for Kisan Credit Card Scheme Working capital for Animal
Husbandry and Fisheries- for Canara Bank Branches?
a. 230
b. 235
c. 335
d. 440

56. What is the implementation period of Pradhan MantriMatsyaSampadaYojana(PMMSY)-

(631/2020)
a. From FY 2020-21 to FY 2021-22
b. From FY 2020-21 to FY 2022-23
c. From FY 2020-21 to FY 2023-24
d. From FY 2020-21 to FY 2024-25
57. Under PMMSY Scheme Maximum …………..of Project Cost/Unit Cost would financed to General
Category beneficiary from Bank.
a. 40%
b. 60%
c. 50%
d. 80%

58. Under PMMSY Scheme Maximum …………..of Project Cost/Unit Cost would financed to
SC/ST/Women Category beneficiary from Bank.
a. 40%
b. 60%
c. 80%
d. 50%

59. What is the specific product code for Covid Funded Interest Term Loan (CFITL): (634/2020)
a. 740
b. 720
c. 711
d. 710

CIBM, Manipal-Multiple Choice Questions – 2020 445

60. CFITL shall be repayable on or before ………………….
a. 31.03.2022
b. 31.03.2021
c. 30.06.2021
d. 30.09.2021

61. All MSME enterprises are required to register online and obtain Udyam Registration Certificate
well before……….. (635/2020)
a. March 31,2021
b. Dec 30, 2020
c. June 30, 2021
d. Sept 30, 2021

62. Value of Plant and Machinery or equipment is based on ………….as per new MSME definition.
a. Written Down Value (WDV)
b. Original Cost of Plant and Machinery or equipment
c. Original Value of Plant and Machinery or equipment and installation cost
d. Original value of Plant and Machinery or equipment minus taxes.

63. The Lead Bank Scheme was introduced by Reserve Bank of India in ………………..(636/2020)
a. December 1968
b. December 1969
c. April 1969
d. April 1968

64. Who is the Chairman of the Block Level Bankers’ Committee?

a. District Magistrate
b. Block Development Officer
c. The Lead District Manager
d. Block Agriculture Officer

65. BLBC meetings are held at…………….intervals

a. Half yearly
b. Monthly
c. Fortnightly
d. Quarterly

66. Who is the chairman of DCC(District consultative Committee) meeting?

a. District Magistrate/Collector
b. Block Development Officer
c. The Lead District Manager
d. Block Agriculture Officer

CIBM, Manipal-Multiple Choice Questions – 2020 446

67. Who is convener of DCC meeting?
a. District Magistrate
b. LDM
c. BDO
d. BAO

68. DCC meetings should be convened by Lead Banks at ………….intervals.

a. Quarterly
b. Monthly
c. Half Yearly
d. Weekly

69. The State Level Bankers’ Committee (SLBC) was constituted in ……………….
a. April 1977
b. July 1977
c. Oct 1977
d. Dec 1977

70. Who Chaired the SLBC meeting?

a. The CMD/MD/ED of Convener Bank
b. State Secretary
c. Chief Minister of State
d. Governor of State

71. The responsibility for Covering the SLBC meeting would be the SLBC Convener Bank of the State
at …………….intervals.
a. Yearly
b. Half Yearly
c. Monthly
d. Quarterly

72. The preparation of PLP for the next year is to be completed by ……….every year to enable the
State Government to factor in the PLP projections.
a. September
b. August
c. October
d. December

73. As on June 30, 2020…………public sector banks………Private Sector bank have been assigned Lead
Bank responsibility in 726 districts of the country.
a. 12, 02
b. 12, 01
c. 14, 01
d. 14, 02

CIBM, Manipal-Multiple Choice Questions – 2020 447

74. As Brick and Mortar branches are an integral component of financial inclusion, it was decided to
focus on villages with population above……………without a bank branch of a scheduled
commercial bank.
a. 2000
b. 5000
c. 1000
d. 10000

75. Bank has been advised to achieve a CD ratio of ……….percent in respect of their rural and semi-
urban branches separately on an All-India basis.
a. 40
b. 50
c. 60
d. 65

76. Canara Bank is SLBC convener in ……….state/s.

a. 1
b. 2
c. 3
d. 4

77. Canara Bank is UTLBC convener in ……….

a. Chandigarh
b. Andaman & Nicobar Island
c. Lakshadweep
d. Pondicherry

78. Canara Bank having Lead Bank Responsibility in…………Districts across ………….states.
a. 27, 06
b. 60, 09
c. 60, 08
d. 27, 07

79. The Fixed amount of……….shall be paid to all active NND Agents who have not achieved the
minimum stipulated business for fall back wages, in the months od April and May 2020.
(637/2020)
a. Rs. 1750/-
b. Rs. 2750/-
c. Rs. 1500/-
d. Rs. 750/-

80. How much maximum Partial withdrawal is permitted to NND Agents on account of COVID 19
relief?
a. 8000
b. 28000
c. 16000
d. 15000

CIBM, Manipal-Multiple Choice Questions – 2020 448

81. The branches shall obtain a declaration from the NND agents duly agreeing for re-depositing the
partial withdrawal within ………..months from the date of receipt.
a. 12
b. 06
c. 03
d. 04

82. Who will be the insurer for Rupay Insurance Program for FY 2020-21 for RuPay Premium cards
and higher Variants Cards? (641/2020)
a. Life Insurance Corporation
b. Bajaj Allianz Insurance Co.
c. Tata AIG General Insurance Company
d. New India Assurance Company

83. All supporting documents relating to the claim must be submitted within ……..days from the
date of intimation (in Case of RuPay Non-Premium Cards).
a. 30
b. 45
c. 60
d. 90

84. The eligible claim will be settled in ………….working days from the date of receiving the complete
document set.
a. 05
b. 07
c. 10
d. 15

85. What is the Payment Gateway Service Charges for online transmission of Farmers premium to
insurance companies? (642/2020)
a. Rs. 5+GST
b. Rs. 10+GST
c. Rs. 15+GST
d. Rs. 20+GST

86. No collateral security is required for KCC working capital Loan to Dairy farmers availing loan of
Rs. ………………under Tie-Up arrangements. (643/2020)
a. Above Rs. 3 Lakh up to Rs. 4.0 Lakh
b. Above Rs. 4 Lakh up to Rs. 5.0 Lakh
c. Above Rs. 2 Lakh up to Rs. 3.0 Lakh
d. Above 3 Lakh up to Rs. 5.0 Lakh

87. E-stamping facility is expanded and now available in …………states/UT. (644/2020)

a. 23
b. 24
c. 25
d. 28

CIBM, Manipal-Multiple Choice Questions – 2020 449

88. For E-stamping our Bank has entered into an agreement with ……………….and the same has been
renewed for a further period of 5 years with effect from 01.04.2020 on all India basis.
a. Stock holding Corporation of India Ltd. (SHCIL)
b. Bulk Handling Corporation of India Ltd (BHCIL)
c. CSDL
d. NSDL

89. Banks are entitled to receive commission at the rate of ……….percent on the Turn Over collected
for E-Stamping on a monthly basis, based on the rates fixed by the respective State Governments.
a. 1.00 to 1.50
b. 0.10 to 0.15
c. 0.12 to 0.15
d. 0.50 to 1.00

90. Annual review of term loan shall be carried out and placed to sanctioning authority by the
respective credit wing/credit department on completion of ……………year from the date of
disbursement/previous annual review. (647/2020)
a. 01
b. 02
c. 03
d. 05

91. Government of India, in consultation with the Reserve Bank of India, has decided to offer a
discount of Rs………. Per gram less than the nominal value to those investors applying online and
payment is mad through digital mode for subscribing Sovereign Gold Bond. (649/2020)
a. 100
b. 200
c. 50
d. 30

92. New portal of death claim settlement has generated an URN no. as 0791CN00001. What is the
first four digits implies?
a. Product code
b. DP code
c. Customer Code
d. Bank Code

CIBM, Manipal-Multiple Choice Questions – 2020 450

ANSWER KEYS FOR CIRCULAR BASED MCQ FROM 601/2020 TO 650/2020

1 C 21 D 41 A 61 A 81 B
2 D 22 B 42 B 62 A 82 C
3 C 23 A 43 B 63 B 83 C
4 A 24 A 44 B 64 C 84 C
5 D 25 D 45 D 65 D 85 A
6 D 26 B 46 C 66 A 86 C
7 C 27 B 47 D 67 B 87 A
8 D 28 C 48 B 68 A 88 A
9 D 29 D 49 D 69 A 89 C
10 A 30 D 50 A 70 A 90 A
11 C 31 C 51 C 71 D 91 C
12 B 32 D 52 C 72 B 92 B
13 B 33 C 53 C 73 B
14 A 34 A 54 B 74 B
15 A 35 A 55 A 75 C
16 A 36 D 56 D 76 B
17 C 37 B 57 B 77 C
18 D 38 A 58 A 78 B
19 B 39 D 59 D 79 D
20 D 40 C 60 B 80 C

CIBM, Manipal-Multiple Choice Questions – 2020 451

 Circular based MCQ (651/2020 to 700/2020)
HO CIR 653/2020

16. Under COVID- 19 Regulatory Package, Reschedulement of instalments of term loans is

permitted in ___
a) EMI Loans
b) Non-EMI Loans
c) Bullet Payment Loans
d) All type of Term Loans

17. Under COVID- 19 Regulatory Package, Reschedulement of instalments can be permitted

with a moratorium of how many months?
a) 3
b) 6
c) 9
d) 12

18. Under COVID- 19 Regulatory Package, Reschedulement of instalments can be permitted

& moratorium will start from which month?
a) Jan 2020
b) Feb 2020
c) Mar 2020
d) April 2020

HO CIR 660/2020

19. As per HO Cir 660/2020, new stationery items are available in the Printing & Stationery
Inventory Management System (PSIMS) package for supply to the Branches/Offices.
Which one is NOT Correct?
a) Gold Loan Bags
b) Demand Draft
c) Cloth lined vouchers
d) Cash Paid Vouchers

CIBM, Manipal-Multiple Choice Questions – 2020 452

HO Cir 661/2020
20. Resolution plan in respect of Personal Loan accounts shall be invoked not later than
December 31, 2020 and must be implemented within how many days from the date of
invocation
a) 45 days
b) 90 days
c) 180 days
d) 270 days

HO Cir 687/2020
21. In Gold Monetization Scheme – Revamped – Gold Deposit Scheme (R-GDS), Medium
Term Government Deposit (MTGD) can be made for how many years?
a) 3 to 5 years
b) 5 to 7 years
c) 7 to 10 years
d) 12 to 15 years

22. In Gold Monetization Scheme – Revamped – Gold Deposit Scheme (R-GDS), Long Term
Government Deposit (MTGD) can be made for how many years?
a) 3 to 5 years
b) 5 to 7 years
c) 7 to 10 years
d) 12 to 15 years

23. The rate of interest on Gold Monetization Scheme deposit will be decided by
a) RBI
b) State Government
c) Central Government
d) Head Office

24. Bank will be compensated for the handling charges for MLTGD at a flat rate of
a) 1%
b) 1.5%
c) 2%
d) 3%

CIBM, Manipal-Multiple Choice Questions – 2020 453

25. Bank will be paid commission for MLTGD at a flat rate of
a) 1.5%
b) 1%
c) 0.75%
d) 0.5%

HO CIR 662/2020

26. NSDL Database Management Limited has set up NIR to manage Insurance policies. What
does NIR stands for?
a) Normal Insurance Record
b) National Insurance Record
c) Normal Insurance Repository
d) National Insurance Repository.

HO CIR 663/2020

27. Officer Employees who work on Public Holidays including Sunday or 2nd / 4th Saturday
on the call from the Bank will be given____
a) Extra wages as per pay scale
b) Rs. 3000/- per working holiday
c) Rs. 5000/- per working holiday
d) Compensatory holiday

28. Compensatory off facility is provided to officers in Scale ______ who are called upon by
the Bank to attend branch/ office on 2nd Saturdays/ 4th Saturdays/ Sundays and/ or on
Public holidays.
a) Scale I to V
b) Scale I to IV
c) Scale I to III
d) Scale I only

29. Compensatory off shall be availed within how many days from the day of working on
2nd Saturday/4th Saturday/ Sunday/ Public Holiday?
a) 7 days
b) 15 days
c) 30 days
d) 90 days

CIBM, Manipal-Multiple Choice Questions – 2020 454

30. The Officer employee shall work for how many hours to become eligible for
Compensatory off.
a) 6
b) 6 ½
c) 7
d) 7 ½

HO Cir 664/2020

17 Which Competent Authority for accepting VRS is NOT mapped correctly?

a) Workmen Employees – DGM CO/ AGM heading CO.
b) Officers Scale I to III –General Manager/ Chief General Manager CO
c) Executives in Scale IV, V –GM/CGM - HR Wing.
d) Executives in Scale VI - ED.

51. Which Competent Authority for accepting Sanction of Pension & Receipt of Nomination
is NOT mapped correctly?
a) Workmen Employees: AGM - CO.
b) Officers Scale I to III : DGM – CO
c) Executives in Scale IV, V –GM/CGM - HR Wing.
d) Executives in Scale VI - ED.

52. Which Competent Authority for accepting Sanction of Granting permission for
commercial employment after retirement in respect of Officer employees is mapped
correctly?
a) Officers Scale I to III –General Manager/ Chief General Manager CO
b) Executives in Scale IV, V –GM/CGM - HR Wing.
c) Executives in Scale VI - ED.
d) Executives in Scale VII & VIII – MD & CEO

HO Cir 668/2020

53. Which statement is NOT Correct regarding Debit cards? Debit Cards dispatched to
customers will not function if _______
a) Account is Dormant
b) Memo is present in account.
c) Joint account with operation Jointly
d) Card issued to Minor ID for Minor Account.

CIBM, Manipal-Multiple Choice Questions – 2020 455

HO Cir 669/2020

54. Application Whitelisting is tool of_______

a) Upgrading Defaulter List of RBI
b) Cyber Security
c) Upgrading status of revived NPA accounts
d) Removing names from Blacklisted parties

HO Cir 671/2020

55. Revised weightages for broad risk categorization for each Borrower for Risk Parameter
“Borrowing Entity & Financial Risk parameters” is
a) 10%
b) 15%
c) 25%
d) 30%

56. Revised weightages for broad risk categorization for each Borrower for Risk Parameter
“Activity/Industry/Sector risk parameters” is
a) 10%
b) 15%
c) 25%
d) 30%

57. Revised weightages for broad risk categorization for each Borrower for Risk Parameter
“Quality of Security Coverage risk parameters” for existing customer is
a) 10%
b) 15%
c) 25%
d) 30%

58. Revised weightages for broad risk categorization for each Borrower for Risk Parameter
“Conduct of facilities proposed risk parameters” for New customer is______
a) 10%
b) 15%
c) 25%
d) 30%

CIBM, Manipal-Multiple Choice Questions – 2020 456

59. Revised weightages for broad risk categorization for each Borrower for Risk Parameter
“Rating risk parameters” for New customer is
a) 10%
b) 15%
c) 20%
d) 25%

HO CIR 685/2020

60. The mandated target of Small and Marginal farmers is______

a) 12% of ANBC
b) 10% of ANBC
c) 8% of ANBC
d) 5% of ANBC

61. The mandated target of weaker sections is____

a) 12% of ANBC
b) 10% of ANBC
c) 8% of ANBC
d) 5% of ANBC

62. Loans up to which amount to Start-ups, will be classified under Priority Sector?
a) 5 Crore
b) 10 Crore
c) 50 Crore
d) 100 Crore

63. Loan up to what limits for Renewable Energy will be classified under Priority Sector?
a) 10 Crore
b) 15 Crore
c) 20 Crore
d) 30 Crore

64. Under Social Infrastructure, lending loans up to a limit of __________ per borrower for
building health care facilities including under ‘Ayushman Bharat’ in Tier II to Tier VI
Centres is now classified under Priority sector.
a) 5 Crore
b) 10 Crore
c) 50 Crore
d) 100 Crore

CIBM, Manipal-Multiple Choice Questions – 2020 457

65. Loans to individuals for educational purposes, including vocational courses, not
exceeding ___________ will be considered as eligible for Priority Sector Classification.
a) 4 Lakh
b) 7.50 Lakh
c) 10 Lakh
d) 20 Lakh

66. Housing Loans up to Rs. _________ in metropolitan centres and up to Rs. ________ in
other centres for repairs to damaged dwelling units, conforming to the overall cost of the
dwelling unit will be considered as eligible for Priority Sector Classification.
a) 5 Lakh & 2 Lakh
b) 5 Lakh & 3 Lakh
c) 10 Lakh & 5Lakh
d) 10 Lakh & 6 Lakh

67. Loans not exceeding Rs. _________ per borrower provided directly by banks to
individuals and their SHG/JLG, provided the individual borrower’s household annual
income in rural areas does not exceed Rs. 1,00,000/- and for non-rural areas it does not
exceed Rs. 1,60,000/- will be classified as Priority Sector.
a) Rs. 50,000/-
b) Rs. 75,000/-
c) Rs. 1,00,000/-
d) Rs. 1,25,000/-

68. Loans up to Rs. _______ per borrowing entity to FPOs/FPCs undertaking farming with
assured marketing of their produce at a pre-determined price will be classified under
Priority Sector.
a) 1 Crore
b) 2 Crore
c) 5 Crore
d) 10 Crore

CIBM, Manipal-Multiple Choice Questions – 2020 458

HO Cir 688/2020

69. To submit the ratification of action initiated beyond delegated powers, branch to submit
ratification note to the delegated authorities within how many days of permitting the
facility?
a) 2 days
b) 5 days
c) 7 days
d) 15 days

70. SME Sulabh/RO has to convey orders of the competent authority within how many days
from the date of receipt of Ratification note?
a) 2 days
b) 5 days
c) 7 days
d) 15 days

71. For CO Powered accounts, CO has to convey orders of the competent authority within
how many days from the date of receipt of Ratification note?
a) 2 days
b) 5 days
c) 7 days
d) 15 days

72. For ED-CAC of the board Powered accounts, orders shall be conveyed within how many
days from the date of receipt of Ratification note?
a) 2 days
b) 5 days
c) 7 days
d) 15 days

HO Cir 690/2020

73. Resolution plan in respect of other than Personal Loan accounts, where the aggregate
exposure of the lending institutes at the time of Invocation of the resolution process is
Rs. ______, shall require an independent credit evaluation (ICE) by any one credit rating
agency (CRA) authorized by RBI under the Prudential Framework.
a) 50 Crore
b) 100 Crore
c) 500 Crore
d) 1000 Crore

CIBM, Manipal-Multiple Choice Questions – 2020 459

74. Resolution plans will be considered for implementation which gets Credit Opinion of
____ or better.
a) RP1
b) RP2
c) RP3
d) RP4

75. Resolution plans to be referred to the expert committee where aggregate exposure is
Rs. ________ & above
a) 1000 Crore
b) 1500 Crore
c) 2500 Crore
d) 5000 Crore

76. Resolution plan in respect of other than Personal Loan accounts shall be invoked not
later than December 31, 2020 and must be implemented within how many days from the
date of invocation
a) 45 days
b) 90 days
c) 180 days
d) 270 days

HO Cir FX/51/2020

77. At the time of renewal of FCNR(B) term deposits, within 14 days after maturity, interest
payable on deposit will be_____
a) Appropriate rate of interest for the period of renewal as prevailing on the date of
maturity
b) Appropriate rate of interest for the period of renewal as prevailing on the date of
renewal
c) Appropriate rate of interest for the period of renewal as prevailing on the date of
maturity or date of renewal, whichever is higher.
d) Appropriate rate of interest for the period of renewal as prevailing on the date of
maturity or date of renewal, whichever is lower.

CIBM, Manipal-Multiple Choice Questions – 2020 460

78. At the time of renewal of FCNR(B) term deposits, after 14 days but before 1 year from
date of maturity, interest payable on deposit will be_____
a) No interest will be paid for overdue period.
b) Simple interest at par with RFC SB rate prevailing on the date of maturity
c) Simple interest at par with RFC SB rate prevailing on the date of renewal
d) Simple interest at par with RFC SB rate prevailing on the date of maturity of earlier
deposit or on the date of renewal, whichever is lower

79. At the time of renewal of FCNR(B) term deposits, after 1 year of maturity, interest
payable on deposit will be_____
a) Simple interest at one year FEDAI reference rate (Benchmark rate for FCNR (B) Deposits)
for the respective currency prevailing on the date of maturity
b) Simple interest at one year FEDAI reference rate (Benchmark rate for FCNR (B) Deposits)
for the respective currency prevailing on the date of maturity or on the date of renewal,
whichever is lower
c) Simple interest at par with RFC SB rate or FEDAI reference rate prevailing on the date of
maturity of earlier deposit, whichever is lower
d) Simple interest at par with RFC SB rate or FEDAI reference rate prevailing on the date of
renewal, whichever is lower

80. Which statement is wrong w.r.t. interest on overdue RFC Term Deposit
a) Overdue RFC Term Deposit can be renewed from the date of maturity at the interest rate
prevailing on the date of maturity
b) For getting interest for overdue period it has to be renewed for minimum period of 1
month from date of renewal.
c) In case of renewal of individual RFC Term Deposits of value USD 200,000 and above or
equivalent in other currencies, minimum period of renewal can be one week beyond
date of renewal.
d) If depositor ask to renew deposit from date of presentation to get higher interest, no
interest to be paid for overdue period.

CIBM, Manipal-Multiple Choice Questions – 2020 461

 ANSWERS TO CIRCULAR BASED MCQ 651/2020 to 700/2020

1 D 2 B 3 C 4 B 5 B
6 B 7 D 8 C 9 B 10 B
11 D 12 D 13 C 14 C 15 B
16 B 17 B 18 D 19 D 20 B
21 D 22 B 23 A 24 A 25 C
26 B 27 A 28 C 29 D 30 B
31 D 32 D 33 C 34 C 35 A
36 C 37 C 38 D 39 B 40 D
41 B 42 C 43 D 44 D 45 B
46 C

CIBM, Manipal-Multiple Choice Questions – 2020 462

 Circular based MCQ (701/2020 to 750/2020)

1. Door Step Banking Service in phase 1 are being offered for Non financial transaction.
Which among the following is not correct for pick up request
a. Negotiable instrument(Cheque/draft/pay order)
b. New cheque book requisition slip
c. 15G 15 H form/Standing Instruction
d. IT Challan/GST/Govt Business
e. Cash

2. Which among is not correct for delivery request in connection with Door Step Banking
a. TDS/Form 16
b. Account statement
c. Prepaid Instrument
d. Locker facility

3. Simplified Common Appraisal memorandum for MSMEs is introduced for loans

a. Above Rs 10 lac up to 1 Cr-Annexure-1
b. Above Rs 1 Cr up to 5 Cr-Annexure-2
c. Above Rs 5 Cr up to 25 Cr
d. Both a and b

4. What is the amount in General Term Loan under National Karmchari Finance and
Development Corporation
a. 90% of Project Cost with maximum 15lacks
b. 80% of Project Cost with maximum 10lacks
c. 90% of Project Cost with maximum 10lacks
d. 75% of Project Cost with maximum 15lacks

5. Promoters contribution is not insisted upon for project costing up to Rs ___

a. 3lacks
b. 1lacks
c. 2lacks
d. 5lacks

CIBM, Manipal-Multiple Choice Questions – 2020 463

6. If an employee met with an accidental bodily injury and expires and if the Insurance
Company accepts his claim, they will make a onetime payment of Rs.________ each
towards the cost of education of up to two of dependent children who are under the age
of 19 as on date the employee meets with accidental bodily injury
a. 6000
b. 5000
c. 10000
d. 25000

7. Due to ongoing COVID Pandemic what is the time line for submission of life certificate for
senior pensioner aged 80 year and above
a. 01.10.2020 to 31.12.2020
b. 01.11.2020 to 31.12.2020
c. 01.12.2020 to 31.12.2020
d. 01.09.2020 to 31.12.2020

8. Back ended capital investment subsidy under National Horticulture Board (NHB) made
available for loan sanctioned under Ag Infrastructure Fund Scheme maximum loan limit
of
a. 3 Crore
b. 5 Crore
c. 2 Crore
d. 1 Crore

9. Credit link back ended subsidy @_______of the total project cost limited to Rs
________per project in general area in Post Harvest Management projects
a. 50% and 50.75lacks
b. 35% and 50.75lacks
c. 50% and 72.50lacks
d. 35% and 72.50lacks

10. Credit link back ended subsidy @_______of the total project cost limited to Rs
________per project in NE Region, Hilly states and scheduled area in Post Harvest
Management projects
a. 50% and 50.75lacks
b. 35% and 50.75lacks
c. 50% and 72.50lacks
d. 35% and 72.50 lacks

CIBM, Manipal-Multiple Choice Questions – 2020 464

11. What is the new parental annual income from all sources of the employed candidate or
his/her parents/guardian in case of unemployed candidate in Dr. Ambedkar Central
Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other
Backward Classes (OBCs) & Economically Backward Classes(EBCs) loan sanctioned from
01.07.2020 to 31.03.2021
a. OBC 8lacks and EBC 8lacks
b. OBC 8lacks and EBC 2.5lacks
c. OBC 2.5lacks and EBC 8lacks
d. OBC 2.5lacks and EBC 2.5lacks

12. What is not true in connection with Education Loan to wards of employees, wherever
employee is joint borrower and education loan is availed during employees active service
in our bank
a. Nil Credit Risk Premium over RLLR
b. The above concessional ROI shall be continued even after superannuation of employees/
voluntary retirement
c. If education loan is availed after the superannuation, applicable ROI has to be charged in
such case as per the scheme guidelines
d. RLLR+2%

13. Loss on Card and Cancare Policy cover has been renewed with which company
a. M/s Oriental insurance company Ltd.
b. M/s United Insurance Company Ltd.
c. M/s Bajaj Alianje
d. Life Insurance Corporation Ltd.

14. The Policy covers frauds by fraudster causing loss. Which among following is not
correct?
a. Debit Card
b. Credit Card
c. Cash Transaction
d. Prepaid Card
e. ITPC

CIBM, Manipal-Multiple Choice Questions – 2020 465

15. The maximum amount of loss covered Prepaid Card (Domestic)
a. Rs 1 Lac
b. Rs 3 Lac
c. Rs 50000
d. Rs 25000

16. The maximum amount of loss covered Canara VISA/Master Card/Rupay

CreditCards(Classic/Standard/Visa/Corporate Cards) sum insured individual(each in
excess of Rs 1,000)
a. 5 Lac
b. 2 lac
c. 1 lac
d. 50000

17. The maximum amount of loss covered Canara VISA/Master Card/Rupay Credit
Cards(Gold /World/Platinum/Select)) sum insured individual(each in excess of Rs1,000)
a. 3 lac
b. 2 lac
c. 4 lac
d. 5 lac

18. The maximum amount of loss covered Prepaid Card International Travel
a. 1 lac
b. 2 lac
c. 4 lac
d. 5 lac
e. 3 lac

19. The Card Holder should report the incident to Bank within how many days
a. 30 Days from the knowledge of first incident
b. One week from the knowledge of first incident
c. 14 days from the knowledge of first incident
d. 15 Days from the knowledge of first incident

CIBM, Manipal-Multiple Choice Questions – 2020 466

20. Branch should ensure that the Card is hotlisted positively with a maximum period of
a. 2 working days from the date of reporting by the customer and within 17 days from the
knowledge of first incident.
b. 5 working days from the date of reporting by the customer and within 20 days from the
knowledge of first incident.
c. 3 working days from the date of reporting by the customer and within 18 days from the
knowledge of first incident.
d. 4 working days from the date of reporting by the customer and within 19 days from the
knowledge of first incident.

21. The maximum amount of loss covered by m/s Oriental Insurance Company Ltd. To
Platinum, Business, Select and Signature variant Debit Card and all credit Card in case
Baggage insurance cover and Purchase protection cover Rs
a. 25000 and 25000
b. 25000 and 50000
c. 50000 and 50000
d. 50000 and 25000

22.As per RBI guidelines, interest subvention is available for Short Term Crop production
and Agriculture allied activities for loans up to
a. 2lacks and 2lacks respectively with overall limit 3lacks
b. 3lacks and 2lacks respectively with overall limit 3lacks
c. 5lacks and 3lacks respectively with overall limit 5lacks
d. 3lacks and 3lacks respectively with overall limit 5lacks

23. In Order to credit the eligible interest subvention or KCCs account ________ is
mandatory.
a. Income certificate
b. Mutation
c. Aadhar Seeding
d. Balance Sheet

24. What is BO report no to generate the list of accounts where interest subvention flag is
not marked in ALM 35
a. 280034
b. 280092
c. 280094
d. 280093

CIBM, Manipal-Multiple Choice Questions – 2020 467

25. The stipulation of second charge under GECL has been waived in respect of all loans
upto _________ (outstanding as on February 29, 2020 plus loan sanctioned under GECL)
a. 50lacks
b. 10lacks
c. 5lacks
d. 20lacks
e. 25lacks

26. Borrower accounts should be less than or equal to 60 days past due as on 29.02.2020
eligible under GECL. Now exception has been allowed for overdue of the borrower
subject to overdues didn’t exceed
a. 2% of the loan amount (GECL amt) in respect of their SB/CA/Credit Card
b. 0.5% of the loan amount (GECL amt) in respect of their SB/CA/Credit Card
c. 0.25% of the loan amount (GECL amt) in respect of their SB/CA/Credit Card
d. 1% of the loan amount (GECL amt) in respect of their SB/CA/Credit Card

27. What is the safekeeping charge to be collected from the customer after 30 days of
expiry of gold loan for loan amount upto Rs. 25000/-?
a. Nil
b. Rs. 100/-
c. Rs. 200/-
d. Rs. 300/-

28. What is Turnaround Time for disposal of PMEGP loan application for
a. Within 15 days for loan quantum above Rs 5lacks and within 7 days for loan quantum up
to Rs 5lacks
b. Within 30 days for loan quantum above Rs 5lacks and within 15 days for loan quantum
up to Rs 5lacks
c. Within 45 days for loan quantum above Rs 5lacks and within 30 days for loan quantum
up to Rs 5lacks
d. Within 60 days for loan quantum above Rs 5lacks and within 45 days for loan quantum
up to Rs 5lacks

CIBM, Manipal-Multiple Choice Questions – 2020 468

29. How many ROI slabs are now in Savings Bank Deposit
a. 2
b. 3
c. 4
d. 6
e. 5

30. What is the minimum amount for handling Education Loan either secured or unsecured
by RAH for their mapped branches.
a. Above Rs 25lacks
b. Above Rs 10lacks
c. Above Rs 7.5lacks
d. Above Rs 20lacks

31. In modified guidelines who is empowered for permitting waiver of obtaining

undertaking letter from the employer not to shift salary account on selective basis
wherever salary accounts are maintained for Special Package under Canara Budget Loan
wherever NPA as at previous month is upto 3% under the scheme.
a. DM RO CAC
b. GM CO CAC
c. Branch in Charge
d. AGM RO CAC
e. Circle Head

32. Which is not true in connection with Quarterly Compliance Certificate(QCC)

a. Branch has to submit QCC before 4th working day from the quarter end
b. RO has to submit QCC before 9th working day from the quarter end
c. CO has to submit QCC latest by 15th working day from the quarter end
d. Wing has to submit QCC before 9th working day from the quarter end
e. Branch has to submit QCC before 10th working day from the quarter end

33. Which is not true in connection with revised consolidated processing charges for Ag
Gold loans.
a. Up to Rs 25000 – Rs 250
b. Above Rs 25000 up to Rs 1lacks—Rs 450
c. Above Rs 1lacks up to Rs 2lacks—Rs 750
d. Above Rs 2lacks up to Rs 3lacks—Rs 1050
e. Above Rs 3lacks up to Rs 5lacks—Rs 1100

CIBM, Manipal-Multiple Choice Questions – 2020 469

34. The reference date for the outstanding amount of debt that may be considered for
resolution due to COVID 19 for stressed other personal loan account
a. 31 March 2020
b. 1 April 2020-10
c. 1 March 2020
d. 29 Feb 2020

35. Now Centralized Processing Centre shall open the current account.Current Account
opening will be delinked for Unit II branches and Unit I branches w.e.f
a. Unit II 01.10.2020 and Unit I 15.10.2020
b. Unit II 15.10.2020 and Unit I 15.10.2020
c. Unit II 15.10.2020 and Unit I 01.10.2020
d. Unit II 01.10.2020 and Unit I 01.10.2020

36. The Countries have been classified by ECGC into ______________categories

a. One Category
b. Three Category
c. Two Category
d. Four Category

37. The countries have been classified by ECGC into three categories. Which among the
following is not true.
a. Open Cover
b. Restricted Cover-Group I: For which Revolving limits are to be approved by ECGC,
normally for one year.
c. Restricted Cover –Group II: For which specific approval has to be obtained from ECGC on
a case to case basis, on merits.
d. Restricted Cover –Group I: For which Revolving limits are to be approved by ECGC,
normally for three year.

CIBM, Manipal-Multiple Choice Questions – 2020 470

38. In case where Bank`s credit exposure is less than 10%of the total credit exposure from
the banking system. Which among the following is true.
a. Debits in such Current Accounts are freely permitted but Credits shall be to the bank
where credit exposure is more than 10%.
b. Credits in such Current Accounts are freely permitted but debits shall be to the bank
where credit exposure is more than 10%.
c. Both credits and debits in such Current Accounts are freely permitted .
d. Neither credits nor debits in such Current Accounts are freely permitted.

39. Funds in current accounts in banks with total credit exposure less than 10% . Which
among the following is true.
a. Shall not be used for providing margin for availing NFB facilities.
b. Shall be used for providing margin for availing NFB facilities.
c. There is no such guidelines
d. Shall not be used for providing margin for availing FB facilities.

40. Banks with less than 10% of total credit exposure are
a. Free to provide WCDL / WCTL to their current account holders.
b. Not free to provide WCDL to their current account holders
c. There is no such specific guidelines
d. It is up to the Branch Manager to take decision

41. What is amount for maintenance expenses in respect of existing furniture fixture
a. 10% of book value
b. 5% of market value
c. 5% of OCP
d. 10% of OCP

42. Tie up arrangement with Fin Tech companies for Micro and Small Enterprises proposal
up to Rs 10lacks. Which among the following is true.
a. 11 select Circles across 9 states through 207 indentified SME specialized branches
b. 10 select Circles across 11 states through 208 indentified SME specialized branches
c. 12 select Circles across 9 states through 217 indentified SME specialized branches
d. 9 select Circles across 9 states through 220 indentified SME specialized branches

CIBM, Manipal-Multiple Choice Questions – 2020 471

43. Bank has entered into MoU with NSKFDC for implementation of NSKFDC Schemes
through Bank as Channelising Agency (CA). NSKFDC stands for:
a. National Sarkari Karmacharis Finance and Development Corporation
b. National Safai Karmacharis Finance and Development Corporation
c. National Safai Karmacharis Financing and Development Corporation
d. National Sarkari Karmacharis Financing and Development Corporation

44.Identification of beneficiaries for loans under NSKFDC Schemes is based on occupation

with income criteria __ and __ caste.
a. Annual family income of less than Rs. 1,00,000/-, to SC and ST
b. Annual family income of less than Rs. 1,00,000/-, to SC,ST and OBC
c. Annual family income upto Rs. 50,000/-, to SC,ST and OBC
d. No income criteria, No caste bar

45.Loans for the target group of NSKFDC Scheme will come under __ Section category of __
Sector.
a. Weaker, Non-Priority
b. SC/ST beneficiary, Priority
c. Weaker, Priority
d. SC/ST beneficiary, Non-Priority

46.What’s the amount reimbursable up to, per Awareness Camp to Channelising Agencies
(CAs) for motivating the target group to avail finance under NSKFDC Scheme?
a. Rs. 25,000/-
b. Rs. 30,000/-
c. Rs. 50,000/-
d. Rs. 1,00,000/-

47.Under NSKFDC Scheme Concessional loans of up to __ for procurement of __ under

Swachhta Udyami Yojana (SUY) of NSKFDC can be granted.
a. Rs. 50lacks, Sanitation related equipments
b. Rs. 25lacks, Vehicles
c. Rs. 50lacks, sanitation related equipments/ vehicle
d. Rs. 25lacks, Sanitation related equipments

CIBM, Manipal-Multiple Choice Questions – 2020 472

48. Back ended capital investment subsidy under NHB Schemes will be made available for
loans sanctioned under __.
a. Agriculture Infrastructure Fund Scheme
b. PMAY to SC/ST/OBC and Women beneficiaries
c. PMAY to weaker section
d. PMAY upto Rs. 6,00,000/-

49. In case of KCC loan/or any other loan under NHB Schemes, it will be seen in terms of
“value of mortgaged land of the applicant” and the “amount of loan availed /to be
availed on it” based on the rates notified by:
a. Block Level Banker’s Committee (BLBC)
b. State Level Banker’s Committee (SLBC)
c. District Level Committee (DLC)
d. State/Central Government

50. Which of the following is one of the scheme under NHB Schemes:
a. Development of Commercial Horticulture through Production and Post-Harvest
Management of Horticulture Crops.
b. Capital Investment subsidy scheme for construction/expansion/ modernization of
residential house in Rural area.
c. Development of Commercial Real Estate for housing by Private Builders registered under
RERA.
d. Capital Investment subsidy scheme for investment in Pre-Harvest Management of
Horticulture Crops.

51. What is accounting procedure to be followed by the Circle Office towards CGTMSE
guarantee fee payment
a. Should raise BAR on branch for making payment to CGTMSE
b. Should call branches to send Demand Draft
c. Should Call directly to customers for payment
d. Should debit Sundry Assets for making payment to CGTMSE

52. Circle Office should provide _________________ to concerned Branch towards CGTMSE
fee.
a. Original Copy of the invoice
b. Duplicate Copy of the invoice
c. Scanned Copy to the invoice
d. Need not to provide copy of the invoice

CIBM, Manipal-Multiple Choice Questions – 2020 473

53. Circle Office should ensure that all branches are squaring off the debit balance in their
parking GL 209272431
a. Within two working days
b. On same working day
c. Within a week
d. Within 10 working days

Answer Sheet for circular based MCQ 701/2020 to 750/2020

1E 11A 21A 31C 41C 51D
2D 12D 22B 32E 42A 52C
3D 13A 23C 33A 43B 53B
4A 14C 24D 34C 44D
5C 15C 25E 35A 45C
6B 16B 26D 36B 46B
7A 17D 27A 37D 47C
8C 18E 28B 38B 48A
9B 19D 29E 39A 49C
10C 20A 30C 40A 50A

CIBM, Manipal-Multiple Choice Questions – 2020 474

 Circular based MCQ (751/2020 to 800/2020)
HO Cir 752/2020:
1) Leads are generated from various sources in case of i-Lead 2.0. The numbers of sources
are:
a. 3 b. 4 c. 5 d. 6

2) Number of stages through which a lead generated in i-Lead 2.0 is passing through till is
attains the status of closure are:
a. 3 b. 4 c. 5 d. 6

3) In i-Lead 2.0, SMS will be triggered to Branch Head if the lead is not attended by branch
staff exceeding ________ hours.
a. 2 b. 3 c. 4 d. 5

4) In i-Lead 2.0, SMS will be triggered to Head of Regional Office if the lead is not attended
by branch staff exceeding ________ hours.
a. 6 b. 7 c. 8 d. 9

5) In i-Lead 2.0, SMS will be triggered to Head of Circle Office if the lead is not attended by
branch staff exceeding ________ hours.
a. 8 b. 12 c. 24 d. 36

6) In i-Lead 2.0, SMS will be triggered to concerned Wing Admin if the lead is not attended
by branch staff exceeding ________ hours.
a. 12 b. 24 c. 36 d. 48

HO Cir 754/2020:
7) The cut off amount of ECIB claims not under investigation of CBI/ ED/ Enforcement
Agencies requires verification of bank records by Regional Claim Processing Committee
(RCPC) of ECGC is
a. 1 Crore b. 5 Crores c. 10 Crores d. 25 Crores

CIBM, Manipal-Multiple Choice Questions – 2020 475

HO Cir 755/2020:
8) As per HO guidelines, MSME camps are to be conducted at selected branches/ centres on
2nd and 4th Fridays of every month. If 2nd or 4th Friday falls on a holiday, the camp or
outreach program is to be conducted on a
a. Succeeding working day b. Preceding working day
c. Next Friday d. No camp for that day

9) Branch wise quarterly MSME camp calendars for conducting MSME camp and outreach
program to be prepared by
a. Regional Office b. Circle Office c. SME Sulabh d. MSME Wing, HO

HOCir 757/2020:
10) Implementation of RLLR is done in our bank with effect from
a. 01.04.2019 b. 01.07.2019 c. 01.10.2019 d. 01.01.2020

HO Cir 761/2020:
11) Loans and advances against securities like shares, debentures shall be granted against
a. Securities in physical form
b. Securities in dematerialized from
c. Both against physical and dematerialized form
d. No loans shall be granted

HO Cir 762/2020:
12) Branch A is a large branch and attached to RAH. Branch received an education loan
proposal for Rs 10 lakhs and submitted to RAH for sanction. What is the action to be taken
by RAH?
a. Sanction the loan by RAH Head
b. Return the proposal to branch for consideration under branch powers
c. Forward the proposal to Regional Office for sanction
d. sanction the proposal by Manager/ Senior Manager of RAH

CIBM, Manipal-Multiple Choice Questions – 2020 476

13) Rejection of Education Loan can be done by
a. Respective Sanctioning Authority
b. Sanctioning Authority subject to concurrence of next higher authority
c. RAH
d. Regional Office
HO Cir 763/2020:
14) Digital India, a flagship program of Government of India for transforming India into a
digitally empowered society has been launched by
a. Ministry of Finance
b. Ministry of Communication
c. Ministry of Electronics & Information Technology
d. Ministry of Prime Minister’s Office

HO Cir 764/2020:
15) Maximum of loan under Canara Insta Deposit Loan (CIDL) is 75% of the deposits opened
through internet banking or
a. Rs. 5 lakhs b. Rs. 10 lakhs c. Rs. 15 lakhs d. Rs. 25 lakhs

16) Under “Resolution Framework for Personal Loans due to COVID-19 related stress”,
moratorium may be permitted subject to a maximum of
a. 1 year b. 2 years c. 3 years d. 4 years

HO Cir 768/2020:
17) PMAY loans remain eligible for interest subsidy if the number of disbursements do not
exceed
a. 6 b. 7 c. 8 d. 9

HO Cir 772/2020:
18) Branches are not authorized to open Savings Bank account in case
a. Panchayat Samities
b. Agriculture Produce market Committee
c. Companies licensed by the Central Government under Section 8 of Companies Act, 2013 or
under Section 25 of Companies act, 1956
d. Khadi & Village Industries Board

CIBM, Manipal-Multiple Choice Questions – 2020 477

HO Cir 774/2020:
19) One of the major features of Business Continuity Plan (BCP) is
a. Risk based Internal Audit (RBIA)
b. Branch visit by overseeing executive
c. Table Top Testing
d, Review of all periodical returns

20) CGM/GM-HO-CAC up to CGM/GM-HO-CAC powers can permit reduction in ROI for retail
lending schemes including CRE-RH & Spl. Package Canara Budget, up to a maximum of
_____% p.a. from applicable rate, subject to the ultimate lending rate not falling below
RLLR+2%. (Cir 776/2020)
a) 1
b) 1.25
c) 1.50
d) 2.00

21) M/s ______________________ is the insurer for the IBA Group Health Insurance Policy
for Retirees for the year 2020-21. (Cir 777/2020)
a) National Insurance Co.
b) Bajaj Allianz Co.
c) The New India Assurance Co. Ltd.
d) United India Insurance Co. Ltd.

22) ________________ is a digital initiative of Micro Credit and Innovation Department of

NABARD which aims at digitization of all the SHG accounts to bring SHG members under
the fold of Financial Inclusion. (Cir 778/2020)
a) ENarishakti
b) EShakti
c) ESahyog
d) ESphurti

CIBM, Manipal-Multiple Choice Questions – 2020 478

23) Under Section 206C(1F) of TCS (Tax Collection at Source),every person being a seller,
who receives any amount as consideration for sale of a motor vehicle of the value
exceeding Rs. _____ lakhs, shall at the time of receipt of such amount, collect from
buyer, a sum equal to _____%.(Cir 779/2020)
a) 20,2
b) 10,2
c) 15,1
d) 10,1

24) Minimum investment in Sovereign Gold Bond shall be ______ g with a limit of
subscription per fiscal year of ___Kg for Individuals, _____ Kg for HUF and ____ Kg for
Trusts. (Cir 780/2020)
a) 10,5,5,20
b) 1,4,4,20
c) 10,3,3,15
d) 5,2,2,10

25) The Sovereign Gold Bond shall bear interest from date of issue at the rate of ______%
(fixed rate) per annum payable semi-annually on the nominal value. (Cir
a) 2.5%
b) 2
c) 1.5
d) 1

26) Canara Pension loan to retired employees of our Bank/Family pensioners can be granted
to the extent of ____ month’s pension amount or Rs. ______ whichever is less, subject to
maintenance of NTH of ______% of Gross after deducting the proposed EMI. (Cir
787/2020)
a) 20,20,00,000,25
b) 20,10,00,000,25
c) 15,10,00,000,25
d) 15,15,00,000,30

CIBM, Manipal-Multiple Choice Questions – 2020 479

27) Under Nitya Nidhi Deposit scheme minimum amount of daily contribution is Rs. ______
& Daily collection per day per account shall not exceed Rs. ______ (Maximum Rs. 30,000
in a month) (Cir 793/2020)
a) 50,1000
b) 25,500
c) 25,1000
d) 30,1500

28) All Retail loans up to Rs. _______ crores sanctioned by Circle Head CAC and above
authorities are exempted from the applicability of Annual Review of Term Loans (ARTL)
(Cir 794/2020)
a) 1
b) 3
c) 2
d) 5

29) Under Canara MSME Gold Loan Scheme minimum loan amount is Rs.____ lakh and
maximum loan amount is Rs. _______ lakh. (Cir 795/2020)
a) 0.50,20
b) 1,20
c) 0.50,10
d) 1,10

30) Scale of Finance for overdraft sanctioned up to 31.03.2021 under Canara MSME Gold
Loan is _____% of the projected Turnover of the unit or ____% of the appraised value
(To maintain LTV ratio of 90% during the entire loan period) whichever is less. (Cir
795/2020)
a) 20,85
b) 25,85
c) 20,80
d) 20,75

CIBM, Manipal-Multiple Choice Questions – 2020 480

31) Scale of Finance for Demand loan sanctioned up to 31.03.2021 under Canara MSME
Gold Loan is _____ % of value of asset proposed to be purchased for business purpose or
____% of the appraised value (To maintain LTV ratio of 90% during the entire loan
period) whichever is less.(Cir 795/2020)
a) 80,90
b) 85,85
c) 100,80
d) 90,80

32) Skill Loans sanctioned up to a limit of Rs. _____ lakhs without any collateral security/third party
guarantee are eligible for coverage under ______. (Cir 796/2020)
a) 1,CGFSSD
b) 1.50,CGFSEL
c) 1,CGFSEL
d) 1.50,CGFSSD

33) Quantum of loan for brand new vehicle under Car loan scheme to officer employees is
_____% of the cost of car which includes insurance, registration and taxes subject to
maximum of Rs. ______. (Cir 798/2020)
e) 95,10,00,000/-
f) 95,12,00,000/-
g) 90,12,00,000/-
h) 90,10,00,000/-

34) Quantum of loan for used vehicles under car loan scheme to workmen employees is
_____ % of the value as per approved valuation by the approved qualified automobile
engineer or actual purchase consideration/price or original invoice price whichever is
least, subject to a maximum of Rs. _____. (Cir 798/2020)
e) 80,8,00,000/-
f) 75,8,00,000/-
g) 80,7,50,000/-
h) 80,10,00,000/-

CIBM, Manipal-Multiple Choice Questions – 2020 481

35) Under clean OD/clean DPN facility scheme to ex-servicemen employees, quantum of
loan is ______ Gross salary (drawn in the Bank)+One and half months pension income, if
any, received from GOI and credited to our Bank or the limit, whichever is lower. (Cir
798/2020)
e) Two and Half month
f) Two month’s
g) One and Half month’s
h) One month

36) Government of India has approved and established ______ fund intended to be used to
complete a set of unfinished housing projects and ensure delivery of homes to home
buyers, wherein ______ has been nominated as Investment Manager.(Cir 799/2020)
a) SAMPURNA.SBICVL
b) SWAMIH,SBICVL
c) PURNA,SBIVL
d) SWAMI,SBIVL

37) Under “Special Window for Affordable and Middle Income Housing” fund, Affordable and
Middle Income Housing means area of housing unit does not exceed ______ sq. mtrs
(RERA carpet area) and price of each unit is below: up to or less than Rs. 2 crore in
Mumbai Metro region, up to or less than 1.5 crore in NCR, Chennai, Kolkata, Pune,
Hyderabad, Bangalore and Ahmedabad and up to or less than _____ crore in Rest of India.
a) 200,1
b) 180,0.75
c) 200,0.75
d) 200,1.25

38) Sum total of the accruals in EEFC, DDA and RFC (D) Account during a month is
converted into rupees on or before the ______ day of the _______ calendar month
after adjusting for utilization of the balance for approved purposes or forward
commitments.(FX/60/2020)
a) Last, Preceding
b) First, Succeeding
c) Last, Succeeding
d) First, Preceding

CIBM, Manipal-Multiple Choice Questions – 2020 482

39) The aggregate exposure of a Bank to the Capital Market in all forms (FB & NFB) should
not exceed ____% of its Net worth as on 31st of the previous year. Within this overall
ceiling, the Banks direct investment in shares, convertible bonds/debentures, units of
equity oriented mutual funds and all exposures to Venture Capital Funds shall not exceed
_______ % of its Net worth. (LDGM 18/2020)
a) 40,20
b) 50,25
c) 30,15
d) 20,40

ANSWER KEY (Cir 751/2020 to 800/2020)

1 C 11 B 21 A 31 C
2 B 12 A 22 B 32 D
3 A 13 B 23 D 33 B
4 A 14 C 24 B 34 A
5 C 15 B 25 A 35 C
6 D 16 B 26 B 36 B
7 C 17 D 27 A 37 A
8 B 18 A 28 D 38 C
9 A 19 C 29 B 39 A
10 C 20 C 30 A

CIBM, Manipal-Multiple Choice Questions – 2020 483

 CIRCULAR BASED QUESTIONS - FROM 801/2020 TO 836/2020
CIR 803/2020
1.Ratio of Jewel Appraisers in the panel at Regional Offices
a.1:10
b.2:10
c.3:15
d.1:20

CIR 805/2020
2.Power to take over of Retail Loans from BNFCs/HFDs with Risk Grade up to CS 2
a. Respective Sanctioning Authority
b.RAH Heads
c.RO Head CAC
d.DGM CAC , CO

CIR 806/2020
3.Prudential exposure to Non Corporate borrowers . Maximum loan to individuals for
personal loans other than schematic lending is
a.10 Cr
b.15 Cr
c.20 Cr
d.25 Cr

CIR 808/2020
4.Charges for Equifax Commercial Credit Information Report(Excluding GST)
a.250
b.275
c.350
d.500

CIR 810/2020
5.ToD in Current Account is delegated to --- % of normal Delegation of Power for
sanctioning Clean loans
a.10 %
b.20 %
c.25 %
d.15 %

CIBM, Manipal-Multiple Choice Questions – 2020 484

6.Validity of a sanction of a Working Capital loan
a.12 months
b.6 months
c.3 months
d.1 month

7.Validity of a sanction of a Term Loan

a.6 months
b.3 months
c.12 months
d.1 month

8.Maxumum credit facility can be extended to a borrower who have been allowed an OTS is
a.Need based fresh advance up to Rs 1 Lakh
b.Need based fresh advance up to Rs 50,000/-
c.Not permitted
d.Up to Rs 25,000/-

CIR 815/2020
9.Maximum loan amount available for Interest subsidy under Deendayal Antyodaya Yojana
– NRLM
a.Rs 10 Lakh
b.Rs 5 Lakh
c .Rs 1 Lakh
d.Rs 3 Lakh

CIR 818/2020
10.What is Cross Default
a.Default in one lender leads to default with another lender
b.Default in a particular debt at parent level would trigger a default at group/subsidiaries
c.Both A & B
d.None of the above

CIBM, Manipal-Multiple Choice Questions – 2020 485

CIR 820/2020
11.GST Return Submission format to be submitted by Working Capital borrowers along with
Stock Statement/MSOD for limits of Rs.--- and Above
a. Rs 1 Cr
b. Rs 5 Cr
c. Rs 50 L
d. Rs 10 Cr

CIR 822/2020
12.Significant level of Customer Service disruptions due to non availability of IT systems of
the bank: if downtime is --- to be reported under unusual cyber security incident .
a. Downtime beyond 4 hours between 8 Am to 8 PM
b.Beyond 8 hours of downtime
c.a or b
d.None of the above

CIR 823/2020
13.Grant of ex gratia payment of difference between compound and simple interest for 6
months from 01/03/2020 to 31/08/2020 provided
a.Borrower’s aggregate sanctioned/outstanding limit should not exceed Rs 2 Cr
b.Non Fund Based limits not eligible
c.Account/s should not be NPA as on 29/02/2020
d.All the above

CIR 824/2020
14.Car loans to employees . Maximum age of the vehicle for financing up to
a.5 Years
b.10 years
c.7 years
d.6 Years

CIR 827/2020
15.Branches are empowered to close zero balance accounts provided
a.Account is inoperative one
b.Remain zero balance for the lat 12 months
c.BSBD, Loan linked accounts are excluded
d.All the above

CIBM, Manipal-Multiple Choice Questions – 2020 486

CIR 830/2020
16.Name the Mobile App for submitting Life Certificate
a.Praman
b.Umang
c.Jeevan
d.PensionCart

cir 833/2020
17.How many Central Processing Hubs are we opening now which will replace CPCs/NPCs in
our bank
a.25
b.10
c.6
d.12

CIR 834/2020
18.November 2020 has been observed as month of
a.Small Accounts Recovery month
b.Safe Deposit Locker month
c.Nomination Awareness
d.SHG Credit Linkage Month

ANSWER KEYS
1 D 7 A 13 D
2 B 8 B 14 A
3 D 9 D 15 D
4 B 10 C 16 B
5 A 11 B 17 C
6 C 12 C 18 D

CIBM, Manipal-Multiple Choice Questions – 2020 487

 RECALLED QUESTIONS

1. Revised guidelines on Priority Sector have come into force based on the
recommendations of ...... Committee
a. a. Sri Y H Malegam
b. b. Dr K S Krishna Swamy
c. c. Dr C Rangarajan
d. d. Sri M V Nair Ans – d

2. As per RBI guidelines, Banks are required to follow priority sectors norms for:
a. Acknowledgement of application & application disposal norms
b. ROI norms
c. Securities norms
d. All of the above ANS is d

3. What is the amount of limit in respect of priority sector advances in general, where the
banks do not charge inspection and service charges? Rs.25000

4. Which of the following is part of the priority sector advance of a bank:

a. Only investment made in securitized assets representing eligible priority sector
advances
b. Only outright purchase of priority sector advances from another bank if not disposed
off within 6 months from date of purchase.
c. Only investment made in interbank participation certificates representing priority
sector advances and held for at least 180 days
d. All of the above ANS is d.

5. RRBs will have a target of _______ per cent of their outstanding advances for priority
sector lending :- 75%

6. RRBs will have a sub target under priority sector for small and marginal farmers and
weaker section __________% and ___________% respectively. :- 8%, 15%

CIBM, Manipal-Multiple Choice Questions – 2020 488

7. Lending to Medium Enterprises, Social Infrastructure and Renewable Energy by RRBs
shall be reckoned for priority sector achievement only up to _____ per cent of total
outstanding. :- 15%

8. Loans to farmers up to _____ lakh against pledge/ hypothecation of agricultural

produce (including warehouse receipts) for a period not exceeding 12 months come
under Farm credit under Agriculture :- 50 lakh

9. Loans to corporate farmers, farmers' producer organizations/companies of individual

farmers, partnership firms and co-operatives of farmers directly engaged in Agriculture
and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and
sericulture up to an aggregate limit of _____ lakh per borrower come under Farm
Credit – Priority sector. :- (200 Lakh) 2 Cr

10. Loan of an aggregate sanctioned limit of _______ Cr. per borrower from the banking
system come under agriculture infra sector. :- 100 Cr

11. What is the loan limit for Agriculture Infrastructure under Priority Sector: Rs. 100 cr.

12. Loans for Food and Agro-processing up to an aggregate sanctioned limit of ______
Crore per borrower from the banking system are categorized as priority sector. :- 100 Cr

13. Loans up to _____ Crore to co-operative societies of farmers for disposing of the
produce of members come under priority advance :- 5 Cr

14. Small and Marginal Farmers will include Loans to farmers’ producer companies of
individual farmers, and co- operatives of farmers directly engaged in Agriculture and
Allied Activities, where the membership of Small and Marginal Farmers is not less than
75 per cent by number and whose land-holding share is also not less than _______ per
cent of the total land-holding :- 75%

15. In terms of revised guidelines issued by Department of Financial Services, Ministry of

Finance, dated September 24, 2018, some modifications in Overdraft limit to Pradhan
Mantri Jan-Dhan Yojana (PMJDY) account holder has been done. Which one is not
correct in this regard;
(a) OD limit raised to 10,000/-
(b) Age limit of 18-60 years has been revised to 18-65 years
(c) There will not be any conditions attached for overdraft up to 2,000/-.
(d) These overdrafts will qualify as achievement of the target for lending to Agriculture
Sector
Option d) as it will qualify as achievement of the target for lending to Micro Enterprises.

CIBM, Manipal-Multiple Choice Questions – 2020 489

16. Loans to individuals up to _________ lakh in metropolitan centres (with population of
one million and above) for purchase/construction of a dwelling unit per family provided
the overall cost of the dwelling unit does not exceed __________ lakh come under
priority sector :- 35, 45

17. Loans to individuals up to ______ lakh in other centres for purchase/construction of a

dwelling unit per family provided the overall cost of the dwelling unit does not exceed
_______ lakh come under priority sector :- 28, 35

18. Bank loans to any governmental agency for construction of dwelling units or for slum
clearance and rehabilitation of slum dwellers subject to a ceiling of _________ lakh
per dwelling unit come under priority sector:- 10 lakh

19. As per RBI directions, bank loans for on-lending to housing finance companies for
lending for housing to individuals up to Rs. ......, per borrower, shall be classified as
priority sector loans. Ans - Rs.20 lac

20. The loans sanctioned by banks for housing projects exclusively for the purpose of
construction of houses for Economically Weaker Sections (EWS) and Low Income Groups
(LIG), the total cost of which does not exceed 1 million per dwelling unit. For the
purpose of identifying the economically weaker sections and low income groups, the
family income limit is revised to ____ lakh per annum for EWS and ____ lakh per
annum for LIG, in alignment with the income criteria specified under the Pradhan
Mantri Awas Yojana :- 3 lakh, 6 lakh

21. Loans for repairs to damaged dwelling units of families up to _____ lakh in
metropolitan centres and up to ______ lakh in other centers :- 5 lakh, 2 lakh

NOTE – As per revised guidelines

Loans up to 10 lakh in metropolitan centres and up to 6 lakh in other centres for
repairs to damaged dwelling units conforming to the overall cost of the dwelling unit.

22. Loans for construction of house toilets and community toilets for weaker sections
comes under Priority sector upto ----- Rs.5 crores

CIBM, Manipal-Multiple Choice Questions – 2020 490

23. Bank loans up to a limit of ______ lakh per borrower for building social infrastructure
for activities namely schools, health care facilities, drinking water facilities, sanitation
facilities, construction/refurbishment of household toilets and household level water
improvements in Tier II to Tier VI centres :- 5 Cr

NOTE – As per revised guidelines

Social Infrastructure: Bank loans up to a limit of 5 crore per borrower for setting up
schools, drinking water facilities and sanitation facilities including construction/
refurbishment of household toilets and water improvements at household level, etc.
and
Loans up to a limit of 10 crore per borrower for building health care facilities including
under ‘Ayushman Bharat’ in Tier II to Tier VI centres.

24. Bank loans up to a limit of ______ Cr. to borrowers for purposes like solar based
power generators, biomass based power generators, wind mills, micro-hydel plants and
for non-conventional energy based public utilities viz. street lighting systems, and
remote village electrification. For individual households, the loan limit will be ____
lakh per Borrower :- 15 Cr, 10 lakh

NOTE : As per revised guidelines

Now limit increased from existing Rs. 15 crore to Rs. 30.00 crore .
Loans for setting up of solar power plants in stilt fashion on farms and using solar
pumset by farmers is classified under Agriculture Farm credit.

25. Loans not exceeding 50,000/- per borrower provided directly by banks to individuals
and their SHG/JLG come under other priority sector, provided the individual borrower’s
household annual income in rural areas does not exceed _______ lakh and for non-
rural areas it does not exceed ______ lakh :- 1, 1.60

NOTE : As per revised guidelines

Now loan limit per borrower increased to Rs 1.00 Lakh for agri/MSME activity and Rs.
2.00 Lakhs for other than agri/MSME activity (loans for meeting social needs,
construction or repair of house, construction of toilets or any viable common activity
started by the SHGs).

26. Under weaker sections, loans to Artisans, village and cottage industries, Distressed
persons other than farmers to prepay their debt to non-institutional lenders and
Individual women beneficiaries up to _________ lakh per borrower categorized under
priority sector.:- 1 lakh

CIBM, Manipal-Multiple Choice Questions – 2020 491

27. Education Loan limit for abroad to be considered under Priority Sector: Upto Rs.10.00
Lac irrespective of sanctioned amount

28. Exposure in SHG / JLG as qualifying assets for an MFI to qualifying for priority sector
lending: 85%

29. Within Priority Sector target of 40% of ANBC or CEOBE, whichever is higher, the sub-
target for Weaker section is: 10% (Now revised to 12%)

30. As per RBI directions, bank loans for on-lending to NBFC for lending lending to Micro
and Small enterprises up to Rs. ......, per borrower, shall be classified as priority sector
loans. Ans - Rs.20 lac

31. As per RBI directions, bank loans for on-lending to NBFC for term lending to agriculture
up to Rs. ......, per borrower, shall be classified as priority sector loans. Ans - Rs.10 lac

32. As per RBI directions, bank loans for on-lending to NBFCs can be allowed under an
overall cap, which is ...... of individual bank’s total priority sector loans? 5%

33. Banks and NBFCs can co-originate priority sector loan as per RBI guidelines. What is the
minimum percent of credit risk by way of direct exposure, that the NBFC has to take?
20% of credit risk

34. Bank allowed an advance under KVI Sector. This will be classified as ......
a. micro enterprise irrespective of the amount of original investment in plant and
machinery
b. micro enterprise if the investment in plant and machinery is within the ceiling
for micro enterprises
c. small enterprise
d. such advances are not priority sector advance Ans – a

35. Incremental export credit over corresponding date of the preceding year can be
included in priority sector lending classification, where the export credit to an individual
borrower is up to Rs. ......? Rs.40 crore per borrower

36. Incremental export credit over corresponding date of the preceding year can be
included in priority sector loans in case of eligible exporters. The total such amount on
aggregate basis can be upto ...... per cent of ANBC or Credit Equivalent Amount of Off-
Balance Sheet Exposure, whichever is higher? 2%

CIBM, Manipal-Multiple Choice Questions – 2020 492

37. Shortfall in Priority Sector lending under Agriculture shall be deposited with: NABARD
under – RIDF (Rural Infrastructure Development Fund).

38. The system-wide average of the last 3 years achievement of priority sector targets with
regard to overall direct lending to non corporate farmers is notified by RBI every year.
The applicable system wide average figure for computing achievement under priority
sector lending for the FY 2019-20 is ....... 12.11%

CIBM, Manipal-Multiple Choice Questions – 2020 493

 RECALLED QUESTIONS

Sl.No. QUESTIONS ANSWERS

1 LEI for Exposure 50 to 100 crore was effective from 15th Dec 2019
2 Retail Exposure to individual limit 5 Crore
3 Swarna Loan product code 608
4 Mandatory report for staff log in SM6000
5 Option to UNDO the change CTL + Z.
6 Tobring in the beginning of a line option Home
7 Vidya Turant Loan amount maximum to Third stage other 20 Lacs
institutions
8 For change of cut and soiled note at counter: 20 pieces and Rs. 5000
9 Foreign National maximum deposit in USD and withdrawal in Rs. 1000 USD and 50000
10 Form 60 or PAN to be obtained for deposit of Rs.50000/ and above
11 Canara CAP maximum limit for service sector Rs. 5 crore
12 EMT of property in Canara Rent urban and metro 133%
13 Priority sector classification in social infrastructure , 5 crore
PublicSanitation, Water facilities
BR ACT 19 mortgage / purchase of share of a company maximum
14 upto ….% of paid up capital of that company or ..% of paid up 30% 30%
capital and reserves of its own use whichever is less
15 DSCR Calculation , NPAT 30, INTEREST 10 , DEPRECIATION 20 and 20
DSCR 2 , What is TLInstallmentin a year
Net profit : 240 , tax paid : 90: Depreciation 75 : interest : 45 :
16 Installment : 75 What is DSCR 2.25
17 Application software Ms office
18 Application Software for photo image Photoshop
19 NRLM first dose repayment 12-18 Month
20 NULM minimum women below poverty line minimum 70 %
21 Minimum target of NULM for women 30%
22 SMA 1 ACCOUNT overdue 31 to 60 Days
23 When should Drawing Power should not be take when Stock 6 month
Statement is older than
24 The return in which LC is included. 4B
25 Risk weight for Rates company from ICRA/ CARE ...A.... 20%
ALL like Insurance , gold
26 BASEL Recognized security:
jewellery, deposit, Central
govt security*
27 The partnership where personal liability is exempted: LLP
28 The shareholding for beneficiary partner in partnership act 15%
29 Minimum percentage of Hindi training in Region B 60%
30 Two wheeler loan for existing and new Borrower and margin 20_30
31 Legal action recovery Through LOKADALAT
32 Strong room requirement if cash holding is above 5 Lacs
Penalty by RBI per occasion in violation of customer services like
33 currency/ coin distribution and breach of performance 10000/-

CIBM, Manipal-Multiple Choice Questions – 2020 494

34 Locker security deposit if rent is 7400pm and break open charge is 24200
Rs.2000 :
35 PMAY what do you mean by pucca house: All Weather Dwelling Unit.
36 What is not used in latest cheque security : Three times cheque number
written on leaf
37 Unhedged foreign currency data both FB and NFB total amount 1 Cr and above
38 GST on incentive paid by RBI for distribution of coins 18%
AS per SARFAESI ,for sale of movable property borrower can
39 approach the DRT in howmany days 45 DAYS
For a New Borrower in CANARA home loan secure minimum
40 repayment is…and maximum …. 2 years-15 years

REAL ESTATE ACTIVITY

41 ECB proceeds cannot be utilized for
/,INVESTMENT IN CAPITAL
MARKET/Equity investment
42 CGTMSE if the claim payout ratio is >20% risk premium is…..% 25 years
43 Extended Amout for Agri Gild loan for crop purpose 3-5 lacs
44 The Maximum loan amount against shares are in demat form 20
45 The frequency of interest paid on sovereign Gold Bond half yearly 2.5%
46 For Gold Card exporter,The stand-by credit limit for urgent needs 20% of sanctioned limit
47 Standup India Portal www.standupmitra.in
48 In consortium,MBAthe consent of…...…value number isrequired 75%, 60%
for initiationofrecoveryproceedings
49 BIOS Basic Input Ouput System
50 In Valuation report of immovable property ,the Screen shot of GPS/APPS/Internet sites
what to be included
51 Swarna loan and Agri Gold Loan Portfolio target for 2020 Swarna Loan 120 Cr. Agri G L
50000 Cr.
Post Sanction Audit of Gold Loan atleast ……no of branches per
52 month and min…% of new loans. Once in quarter,2 ,10%
53 Time Given to OTS parties without charging any interest 3 months
54 Provision At HO at 5% Restructured Education Loan
accounts
55 Person appointed by court to deal with estate of deceased…. Administrator
56 VSL thorough Alternate Channel Of Banking CIDL canara insta deposit loan
57 MCLR which frequency is not present 2 MONTHS
58 FITCH INDIA new name is India ratings and research
59 CanaraKhazana for less than …crores 2
60 HEFA-Term Loans for infrastructure for such institutions 10
development for term of………years
61 Expand UDIN Unique Document
Identification Code.
62 RiskWeight for Commercial Real Estate-RH 75%
63 Aggregate Retail Exposure to non corporate individual 10 Crore
64 NULM Maximum loan per member Rs……or……lakhs whichever is 2 lakhs and 10 lakhs
less
65 Circlefilingform… … for TDS and TAN number updated centrally 01/04/2019-26Q
FROM….
66 To file with DRT,the liability including non fund based limits is…. 20 lacs
67 OTR aggregate Exposure including non fund based limits..is 25 cr
68 Currency Chest Charges …………….per packet for accepting other Rs 8
Bank cash

CIBM, Manipal-Multiple Choice Questions – 2020 495

 50% of the Maximum Exposure
69 Ceiling of credit extended to airline ceiling fixed for a Single
Borrower
70 Precautions and Responsibilities of Double Lock Key Holders Jointly liable
71 FCNR cannot be opened in which currency NZ
72 Debit cards and Credit Cards which type of Money Plastic Money
73 Doubtful assets -if value of security realization is ….less than the 50%
original value
Adnhar and mobile and must
74 What is mandatory in E-kyc based BC terminals? not be customer of our bank
75 PMEGP the maximum amount of loan to manufacturing units as 1 cr
2nd loan
76 Penalty for delay in filing TDS 200/day
77 One MB=…kilobytes 1024 Kb
78 Help window through which key of Key Board F1
79 Features of BSBD account incorrect Atm with credit card
80 Subsidy maintaining in SL head with effect from …. 01-09-2019
81 whichScheme quarterly paid senior citizen savings scheme
82 MCLR linked to concessional ROIon agri credit extended to 31-07-2020
83 what is EBID Earnings before interest and
depreciation
84 A bulk deposit of above 10 Cr., branch has to take acceptance Integrated Treasury Wing
from Mumbai
85 Designated authority under whistle blower policy G M, HR wing - HO
86 HEFA new institutions school of planning and
architecture
87 Minimum holding period for Housing loan at ARC in securitization 12 months

CIBM, Manipal-Multiple Choice Questions – 2020 496

 RECALLED QUESTIONS

1. Day NULM limit

2. CGTMSE Fee up to % Lacs

3. CR=1.75, NWC=20, CA=?

4. Priority Credit Limit for Export Credit

5. Connected with central server, what Topology?

6. Currency Chest Area in Hilly Area?

7. Hindi Communication from A region to C region

8. Agriculture Priority Sector limit.

9. ECGC coverage above the limit.

10. OBE is 38000 Advance is 35000 Limit under Priority Sector for Micro Enterprises.

11. CLS TUS Limit for SC/ST

12. Bank Agriculture Target for FY 2019-2020

13. DICGC is not applicable for which deposit?

14. What is Gold Plaza?

15. Powers of GM-CO-CAC for Interest rate concession/waiver.

16. LC facility for HEFA

17. PMEGP 2nd Loan limit.

18. Loan limit through Mobile OTP

CIBM, Manipal-Multiple Choice Questions – 2020 497

19. ED can relax BG Margin

20. Bank can take Equity Exposure in company

21. Housing Loan Risk Weightage upto 30 Lacs

22. Gold Card Exporters fresh loan time norms.

23. Post Shipment overdue bill maximum tenure including NTP

24. Priority Sector quantum of loan for slum EWS Section

25. Upfront fee for non priority loan above 25 Crore

26. Bulk Non Callable Deposit Maximum tenure

27. Bulk Deposit upto 10 Crore to be reported

28. Inchoate Instruments under Section

29. Bill of Exchange security feature deleted will be considered as

30. What is not correct about Canara GST

31. Half Duplex System is

32. What is right among following on window dressing

33. What are not Government Sponsored Schemes

34. Security value requirement for Canara Rent in rural areas

35. TreRDS stand for

36. Gold Loan product code

37. Liability of introducer when account becomes NPA

CIBM, Manipal-Multiple Choice Questions – 2020 498

38. MSME Sahay

39. What connects all devices in PC

40. All cheques above what amount should invariably be checked through UV lamp

41. Garnishee Order is issued by

42. What out of following comes under Farm Credit

43. Recovery Team at CO is Headed by

44. Negotiable Warehousereceipt period of loan

45. LDM does annual meeting in which month

46. Bulk Term Deposit for Individual deposit above

47. Pronote date is 27.04.2016, AOD not available, Suit can be filed by which date

48. The purpose of Loan under Vidya Turant which is not correct

49. Methods of Sale of Security under SARFAESI

50. New Security Features of MICR Cheque

51. Under POA account principal dies, cheque is presented after death

52. Which is not Small Savings Scheme

53. SL Subsidy Head RO periodicity

54. PSB Loans in 59 minutes, what is not the role of maker and checker at Branch

55. Rates to be obtained from SPD Wing HO for deposit amount

56. EL Loan for Study abroad, which is not correct with regard to AOD

CIBM, Manipal-Multiple Choice Questions – 2020 499

57. NRO account for Citizens of Pakistan and Bangladesh maximum period

58. Under Recovery Policy, what is not correct

59. Under PMEGP second dose, loan for manufacturing and services

60. Under Canara Cap, Security for Services in Urban/Metro area

CIBM, Manipal-Multiple Choice Questions – 2020 500

 RECALLED QUESTIONS
1. ECB Norms for Startup - 3 years (5 years wrong answer)
2. D S C R CALCULATION : 100 + 50 + 50 / 50+ 75 = 1.60
3. BASEL 3 COVERAGE
4. LONG TERM SOURCE RS. 600 LACS , CURRENT ASSET 600 LACS , TOTAL SIDE OF
BALANCE SHEET RS. 1000 LACS, NWC RS. 200 AND CR 1.50
5. PROVISIONING ON NPA D2 , NPA AMOUNT 50 LACS, SECURITY 40 LACS, HOW MUCH
PROVISION WE HAVE TO MAKE RS. 26 LACS
6. HOLIDAY KNOWN BEFORE 3 DAYS - KNOWN HOLIDAY
7. CURRENCY CHEST WITHDRAWALS - RS. 1 LACS AND MULTIPLE OF RS. 50000
8. NEW CURRENCY CHEST BALANCE - RS. 10 BILLION
9. REVERSAL OF ATM, IF NOT DONE PENALTY - RS. 100 PER DAY
10. TELLER WISE LIST WHICH RERORT TO BE GENERATED – 651
11. CLAPS – WHY INTRODUCED
12. PENALITY FOR NON FUNCTIONING OF CC TV IN CURRENCY CHEST – RS. 5000
13. AS PER KYC NORMS PARTNERSHIP FIRM WHO WILL BE BENEFICIARY OWNER – 15%
14. FIRE AUDIT
15. NCLT WATER FALL MECHANISM
16. REPORTIG ON CRILIC PLATFORM – RS. 5 CR EVERY WEEK FRIDAY
17. NOT A PART OF OPERATIONAL RISK – LIQUIDITY RISK
18. WHICH OF THE FOLLWOING IS NOT A WEB BROWSER – GOOGLE PIXEL
19. SMALLEST UNIT OF MEMORY –
20. 1024 OF WHAT WILL BECOME TERABYTE - GIGABYTE
21. WHICH OF THE FOLLWOING IS NOT A STORAGE DEVICE -
22. FOREIGN EQUITY HOLDING
23. KCC LOANFOR CARDIMUM IN KERALA WHAT IS THE ROI AND SEUCRITY –
24. CURRENT ACCOUNT OPENING PREQUISITE
25. REPO RATE AND REVERSE REPO RATE –
26. WHICH IS NOT A COMPONENT OF RESTRUCTURING – COMPROMISE
27. NPA RATIO OF A BANK IS 20% WHAT IS THE ADDITIONAL PREMIUM ON CGTMSE
28. WHICH LONG TERM RATING IS HAVING RISK WEIGHT OF 100% - BBB CARE
29. CRE PROVISIONING - 1%
30. WHICH RIGHT WILL LAPSE ONCE SALE NOTICE IS PUBLISHED IN PAPER – RIGHT OF
REDEMPTION
31. MSME CAP –

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32. AS PER LATEST GUIDELINES WHO CAN ATTET OVD FOR NRI /PIO - WRONG ANSWEER
WAS DIRECTOR OF COMPNAY
33. WHICH TYPE OF ORGANISATION FALLS UNDER SECTION 8 OF COMPNAY ACT - NON
PROFIT ORGANSIATION
34. PRINCIPLE DIES UNDER POWER OF ATTORNY -- POA TERMINATED
35. WHICH ROI IS NOT DECLARED IN RATE OF INTEREST OF SMALL SAVINGS – NSC
36. ACCELERATED PROVISION IN SUB STANDARD – UNSECURED LOAN AFTER 6 MONTH -
40%
37. GOLD LOANS FOR EXPORTER
38. PERMISSION IS REQURIED FOR TRADE CREDIT FOR – NEW GEMS AND JEWLERY
39. HYPOTHICATION IS DEFINED IN - SARFAESI ACT
40. OPERATING RISK UNDER BIA IS - POSITIVE ANNUAL GROSS INCOME
41. RISK WEHGHT FOR HL OF 80 LACS WITH 75% LTV IS - 50% AFTER 7.6.2017
42. ICA FOR LOANS ABOVE RS. 1500 – DATE 1.1.2020
43. MDB, IMF AND BSI FULL FORM
44. MERGER OF TRACK 1 AND 2 IN ECB –
45. FOREX TRANSFATION REVERALS ARE TAKEN AT DISCOUNT OF –25%
46. PERIOD OF SMA 1 - 31 DAYS TO 60 DAYS
47. LEGAL ENTRY IDENTIFIER IS – 20 DIGIT ALFA NUMIRIC NUMBER WITH 1 YEAR VALIDITY
48. NOTING IN HINDI IN C AREA -
49. OMBUDSMENT WILL NOT COVER –
50. PAN CARD IS REQURIED WHILE REGISTRATION IF THE REGISTRATION VALUE FOR STAMP
PURPOSE IS MORE THAN – RS. 10 LACS
51. IF THE BANKS DECIDED AT A PREDETERMINED DATE TO TRANSFER THE LOAN FROM
ONE BANK T ANOTHER WHAT IS THIS - TAKE OUT FINANCE
52. CRYSTALISATION IN SME
53. REFUND OF CLAIM WITHIN 30 DAYS
54. RESTRUCTIURING IS NOT CONISDERED
55. REGULATIORY RETAIL – 5 CRORES
56. CTS CHEQUE DIGIT -
57. DELAY N FOREX AT WHAT RATE FEDAI WILL PAY –
58. IP NUMBER CAN BE MASKED –
59. CPU DOES – MULTITASKING
60. HEFA – OBJECTIVE OF HEFA
61. COMPUTER CONNECTED IN LOCAL AREA IN A OFFICE OR ORGANISATION – INTRANET
62. PSB 59 WHAT IS THE ROLE OF AUTHORISOR
63. VIDYA TURANT LOAN OF ISB – RS. 40 LACS
64. WHICH PORTLE NOT DEVELOPMED BY SIDBI – vidyalaxmi

CIBM, Manipal-Multiple Choice Questions – 2020 502

65. NBFC ON LENDING TO AGRICULUTRE – RS 10 LACS
66. NRLM –
67. SOCIAL MEDIA POLICY CASE UNDER – INFORMATION TECHNOLOGY ACT
68. AS PER RBI UNDER NOTICE DEPOSIT TIME GIVEN TO BANK –
69. BALANCE SHEET PROVISION DONE AT HO
70. COLLATERAL DEFINED AS PER BASLE 3
71. PMAY MARGIN
72. BANK GUARANTEE CALUSE IS UNDER GM-HO-CAC –judiciary
73. WHY REGISTRATION OF PARTNERSHIP FIRM REQURIED – TO SUE OTHERS
74. KISAN SAMPARK ABHIYAN – 10 DAIRY LOANS IN A MONTH
75. SGB DISCOUNT ON ONLINE – RS. 50
76. PILLAR 3 UNDER BASEL – MARKET DISCIPLINE
77. GOLD PLAZA
78. CGTMSE IF RECOVERED AMOUNT NOT PAID PENALITY – 30 DAYS
79. SECURITIZATION TRANSACTION
80. BG WHICH TYPE OF LIABILITY – CONTEGINT LIABILITY
81. UNAPPLIED INTERST AT WHAT RATE
82. CGFMU – PAYMENT
83. STOCK STATEMNT OLDER THAN 3 MONTH
84. VALUATION HAS TO ADD IN VALUATION REPROT – MODEL CODE OF CONDUCT
85. WHISTLE BLOWING –
86. ACCOUNT BECAME NPA BEYOND THE CONTROL OF BORROWER – EXTERNAL ECONOMIC
CONDITION
87. CANARA HOME LOAN SECURE POLICY REFUND IF HOUSING LOAN PAID IN FULL –
88. NF 607 AND STAFF LAPSE IN HOW MAY DAYS –
89. GOLD REAPPRASSAL - REPORT

CIBM, Manipal-Multiple Choice Questions – 2020 503

 केनरा बक ारा
कािशत
थम मै यु अल

First Manual
published by
Canara Bank

के नरा बक, अनुसंधान व काशन अनुभाग

के नरा बक बंधन सं थान, मिणपाल

Canara Bank, Research and Publication Section

Canara Institute of Bank Management, Manipal

[email protected] | www.canarabank.com