Free Banking Exam SBI General Question and Answers — Questions and Answers
Question 1: Which of the following is not acceptable as address verification for a person opening a bank account?
- Other than those gives as options.
- Domicile certificate
- Letter from any recognized public authority (Correct answer)
- A rent agreement indicating the address of the customer duly registered with State Govt.
Correct answer: Letter from any recognized public authority
For opening a bank account, banks require valid proof of address to comply with Know Your Customer (KYC) norms. While a domicile certificate and a registered rent agreement are generally accepted, a generic 'letter from any recognized public authority' is usually not sufficient on its own as it lacks the specific verification details required by banks. Banks typically require standardized documents like utility bills, passport, or Aadhaar card for address verification.
Question 2: How many digits are there in the IFSC code?
- 7
- 9
- 11 (Correct answer)
- 15
Correct answer: 11
The Indian Financial System Code (IFSC) is an 11-character alphanumeric code used to identify individual bank branches participating in the NEFT and RTGS systems. The first four characters represent the bank name, the fifth character is always zero, and the last six characters represent the specific branch code. This unique identifier ensures accurate and efficient fund transfers.
Question 3: What is the name of the savings bank account that is inactive for more than 24 months?
- Inactive account
- Inoperative account
- Dormat account (Correct answer)
- Demat account
- None of these
Correct answer: Dormat account
A savings bank account that remains inactive for more than 24 months (i.e., no customer-initiated transactions like deposits or withdrawals) is typically classified as a dormant account. Banks classify such accounts to protect customers from potential fraud and to manage their operational risks. To reactivate a dormant account, customers usually need to complete KYC formalities.
Question 4: The National Investment and Infrastructure Fund (NIIF) was created in accordance with
- IMF
- SEBI (Correct answer)
- World Bank
- Department of Industrial Policy and Promotion (DIPP)
Correct answer: SEBI
The National Investment and Infrastructure Fund (NIIF) is a quasi-sovereign wealth fund established by the Government of India. As an investment fund, its structure and operations, particularly if it involves public offerings or specific investment vehicles, would be regulated by the Securities and Exchange Board of India (SEBI), which governs capital markets and investment funds in India.
Question 5: Which of the following organizations serves as the nodal agency for licensing e-commerce businesses (including foreign ones)?
- SEBI
- Reserve Bank of India(RBI)
- Foreign Investment Promotion Board (FIPB)
- Department of Industrial Policy and Promotion (DIPP) (Correct answer)
Correct answer: Department of Industrial Policy and Promotion (DIPP)
The Department of Industrial Policy and Promotion (DIPP), now known as the Department for Promotion of Industry and Internal Trade (DPIIT), is the nodal agency in India responsible for formulating and implementing policies related to foreign direct investment (FDI), including those in the e-commerce sector. It sets the guidelines for licensing and operating e-commerce businesses, including foreign ones, to ensure compliance with national industrial and trade policies.
Question 6: National Electronic Fund Transfer, or NEFT, can be used to
- Account holders (Correct answer)
- Non-Account holders
- DEMAT Account holders
- All of the above
Correct answer: Account holders
National Electronic Funds Transfer (NEFT) is a system that facilitates one-to-one funds transfer from an account in one bank to an account in another bank. While some banks might allow cash deposits for NEFT by non-account holders up to a certain limit, the primary and most common use of NEFT is for transfers between bank accounts held by individuals or entities. Therefore, it is fundamentally designed for account holders.
Question 7: The Department of Divestment is now known as DIPAM by the Union Government of India. What does "A" in DIPAM stand for?
- Asset (Correct answer)
- Audit
- Amount
- Account
- None of these
Correct answer: Asset
DIPAM stands for the Department of Investment and Public Asset Management. It was formerly known as the Department of Disinvestment. The 'A' in DIPAM specifically refers to 'Asset,' as the department is responsible for managing the government's investments in public sector undertakings and for strategic disinvestment of public assets.
Question 8: How much may a user send through Immediate Payment Services (IMPS) at one time?
- Rs. 5,00,000
- Rs. 4,00,000
- Rs. 3,00,000
- Rs. 2,00,000 (Correct answer)
- Rs. 1,00,000
Correct answer: Rs. 2,00,000
Immediate Payment Service (IMPS) facilitates instant interbank electronic fund transfers. Historically, and in many contexts, the maximum amount a user could send through IMPS in a single transaction was Rs. 2,00,000. This limit was set to ensure security and manage transaction risks within the digital payment ecosystem.
Question 9: Which of the following organizations serves as the Unstructured Supplementary Service Data (USSD) Service nodal agency?
- SEBI
- FBI
- RBI
- SBI
- NPCI (Correct answer)
Correct answer: NPCI
The National Payments Corporation of India (NPCI) serves as the nodal agency for the Unstructured Supplementary Service Data (USSD) service in India. NPCI is an umbrella organization for operating retail payments and settlement systems in India, and it developed the *99# service (USSD-based mobile banking) to enable financial transactions for feature phone users without internet access.
Question 10: The SDR is calculated using a basket of five different foreign currencies. Among the five currencies are
- US Dollar, Euro, Rubble, Pound and Yuan
- US Dollar, Euro, Yen, Pound and Dinar
- US Dollar, Euro, Yen, Pound and Australian Dollar
- US Dollar, Euro, Yen, Pound and Yuan (Correct answer)
- None of these
Correct answer: US Dollar, Euro, Yen, Pound and Yuan
The Special Drawing Right (SDR) is an international reserve asset created by the International Monetary Fund (IMF) to supplement its member countries' official reserves. Its value is determined by a basket of five major international currencies: the US Dollar, the Euro, the Japanese Yen, the British Pound Sterling, and the Chinese Renminbi (Yuan). These currencies represent the world's principal trading and financial currencies.
Question 11: An arm of the UN is the International Development Association (IDA).
- World Bank (Correct answer)
- IMF
- Asian Development Bank
- Organisation for Economic Co-operation and Development (OECD)
- None of these
Correct answer: World Bank
The International Development Association (IDA) is an arm of the World Bank that provides concessional loans and grants to the world's poorest developing countries. It is one of the five institutions that comprise the World Bank Group, focusing on poverty reduction and sustainable development in low-income nations. IDA is often referred to as the World Bank's 'soft loan window'.
Question 12: How much FDI is permitted in Indian e-commerce firms?
- 34%
- 26%
- 51%
- 49%
- 100% (Correct answer)
Correct answer: 100%
In India, 100% Foreign Direct Investment (FDI) is permitted under the automatic route in the marketplace model of e-commerce. This policy allows foreign entities to fully own and operate e-commerce platforms that act as facilitators between buyers and sellers. However, FDI is generally not permitted in the inventory-based model of e-commerce.
Question 13: A service known as Unstructured Supplementary Service Data (USSD)
- Mobile Service (Correct answer)
- Credit Card Service
- Digital India Service
- Online banking service
- None of these
Correct answer: Mobile Service
Unstructured Supplementary Service Data (USSD) is a communication protocol used by GSM cellular telephones to communicate with the service provider's computers. In the context of banking, USSD is a mobile banking service that allows users, especially those with feature phones, to perform banking transactions like balance inquiry, mini-statement, and fund transfers by dialing a short code (e.g., *99#). It is fundamentally a mobile-based service.
Question 14: A new deposit program proposed by a bank must now be approved by:
- IBA
- RBI
- respective Bank's Board (Correct answer)
- None of these
Correct answer: respective Bank's Board
While the Reserve Bank of India (RBI) sets broad guidelines and regulations for deposit products, the final approval for a new deposit program proposed by an individual bank typically rests with that bank's own Board of Directors. The Board ensures the product aligns with the bank's strategy, risk appetite, and regulatory compliance before launch. This internal governance is crucial for product development.
Question 15: Among the following, which one has the largest network, accounts, and annual deposits:
- ICICI
- IDBI
- IOB
- Post office saving bank (Correct answer)
- None of these
Correct answer: Post office saving bank
The Post Office Savings Bank (POSB) in India has the largest network of branches across the country, reaching even remote rural areas where commercial banks may not have a presence. This extensive network, combined with its long history and trust, results in a vast number of accounts and significant annual deposits, making it the largest in terms of reach and customer base among the given options.
Question 16: Which of the following individuals stepped down as the Supreme Court panel's chairman regarding the Char Dham project?
- G Mahalingam
- Balasubramaniam
- Mrin Agarwal
- Ravi Chopra (Correct answer)
Correct answer: Ravi Chopra
Ravi Chopra had resigned as the chairman of the Supreme Court-appointed high-powered committee on the Char Dham project. The Char Dham project aims to improve the connectivity and infrastructure for pilgrims visiting the four holy shrines in Uttarakhand, India, namely, Badrinath, Kedarnath, Gangotri, and Yamunotri.
Free Banking Exam SBI General Question and Answers
Which of the following is not acceptable as address verification for a person opening a bank account?