Banking Financial Awareness · General Awareness

Banking Services and Operations

1,373 Questions

Banking Services and Operations cover the fundamental principles of financial institutions, including credit markets, money supply, and risk management. It also addresses various transaction methods and account types used by businesses. This topic is crucial for candidates preparing for banking and insurance recruitment examinations.

Banking AbbreviationsCredit Market OperationsMoney Supply MetricsRisk Management MeasuresForeign Exchange RulesDigital Banking Technology

Banking Services and Operations Questions

Multiple choice

Bank deposit refers to:

  1. The amount of money standing to the credit of a customer of a bank

  2. A term used by the Federal Reserve to refer to the total deposits of member banks

  3. The amount of money standing to the debit of a customer of a bank

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A bank deposit fundamentally refers to money standing to the credit of a customer in a bank account. This represents the customer's claim on the bank. The other definitions either refer to specific contexts (Federal Reserve terminology) or are incorrect (debit balance represents liability, not deposit).

Multiple choice

Banking ombudsman may reject the complaint

  1. immediately after receipt

  2. after hearing both parties

  3. at any stage

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Banking Ombudsman has the authority to reject complaints at any stage of the proceedings if they do not meet the specified criteria, such as being time-barred, not falling within the ombudsman's jurisdiction, or being frivolous/malicious in nature. This power ensures that only genuine and valid complaints proceed to resolution.

Multiple choice

NEFT stands for

  1. Non-Electonic Fund Transfer

  2. National electronic funds transfer

  3. National Electronic Finance Transfer

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

NEFT enables funds transfer from one bank to another but works a bit differently than RTGS since the settlement takes place in batches rather than individually, making NEFT slower than RTGS

Multiple choice

The first foreign bank that has been permitted by Reserve Bank of India to handle Currency Chest in India is

  1. Standard Chartered Bank

  2. China Trust Commercial Bank

  3. Hongkong & Shanghai Banking Corporation

  4. ABN Amro Bank

  5. Citi Bank
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 Correct Ans. 1. In 2003, foreign banks were permitted for the first time to operate currency chests. Standard Chartered Bank — the largest and oldest foreign bank in the country was the first foreign bank to handle currency chests in India.

Multiple choice

Which of the following statements is/are correct in respect of Kisan Credit Card?

  1. Credit limit of cardholder is determined on the basis of ownership of agriculture land.

  2. Cash Credit facility in respect of all crops is provided on Kisan Credit Card.

  3. Limit of Kisan Credit Card depends upon scale of finance, which is decided by lead district bank and it varies from place to place.

  4. All of the above

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Option 4 is correct.

Multiple choice

India Switch Company, which managed IBA's SWADHAN Network, has managed a new Network. What is the name of this new network?

  1. BANCS

  2. BANCASSURANCE

  3. BANKMASTER

  4. BANK PLUS
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

India Switch Company, which managed IBA's SWADHAN ATM network, created and managed the BANCS network as a new initiative. SWADHAN was earlier shared ATM network for banks. BANCS became another important banking network in India's evolving ATM/shared banking infrastructure in the early 2000s.

Multiple choice

Which statement is incorrect with regard to General Credit Card (GCC) scheme?

  1. GCCs are issued by commercial banks to meet general credit requirement of customers in rurl/semi-urban areas

  2. Total credit facility under a GCC for an individual should not exceed Rs. 25,000

  3. Banks should not insist for collateral securities while issuing GCCs

  4. A loan disbursed under GCC Scheme is not a part of Priority Sector Lending

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement D is INCORRECT - loans under the GCC (General Credit Card) scheme ARE part of Priority Sector Lending. The other statements are correct: GCCs are issued for rural/semi-urban areas (A), credit limit is Rs. 25,000 (B), and collateral is not required (C). The Priority Sector classification makes these loans important for financial inclusion.

Multiple choice

Which of the following statements is correct for a white label ATM?

  1. White label ATM is owned and operated by both banks and non-bank entities.

  2. White label ATM is owned and operated by banks only.

  3. White label ATM is owned and operated by non-bank entities only.

  4. White label ATM is stopped for operations due to some fraud.

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

White label ATMs are the ATMs which are not owned and operated by banks but by private ATM service providers. 

Multiple choice

ELPS is

  1. Electronic Local Payment System

  2. Electronic Ledger Posting System

  3. Electronic Local Payment Service

  4. Electronic Loan Payment Service

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The answer is correct. Before introduction of computers in banking system , ELPM/ ALPM were used for making ledger entries on real-time basis.

Multiple choice

SMART money is a term used for

  1. Internet Banking

  2. Credit card

  3. Bank cash

  4. Public cash
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SMART Money refers to credit cards because they represent intelligent, electronically-trackable money that offers security and convenience. Unlike cash, credit cards provide purchase protection, expense tracking, and the ability to make transactions without carrying physical currency.