Banking Financial Awareness · General Awareness

Banking Services and Operations

1,239 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

'A call' means

  1. calling on friends

  2. calling on bank employees

  3. calling on prospective customers

  4. to make telephone calls

  5. calling on relatives

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

In a professional or sales context, making a call refers to the act of contacting a prospective customer to initiate a business relationship or pitch a product.

Multiple choice

'A lead' means

  1. a prospect who is more likely to avail of the bank's product

  2. a political leader

  3. a religious leader

  4. a bank Chairman

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

In a business or banking context, a lead is a potential customer who has shown interest in a product or service. None of the provided options (political leader, religious leader, bank Chairman) define this term correctly.

Multiple choice

'A prospect' means

  1. any customer who walks into the bank

  2. an employee of the bank

  3. a customer who is likely to be interested in bank's product or service

  4. a depositor of the bank

  5. a borrower of the bank

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

 A prospective customer is someone who is not yet a customer, but who has the potential of becoming one.

Multiple choice

Which of the following launched “Mortgage Check”, the country's first electronic database to help in identification of fraudulent home loan seekers and habitual defaulters, recently?

  1. Experian Credit Information Co.

  2. Credit Information Bureau Ltd.

  3. Equifax Information Services

  4. Highmark Credit Information Services
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Credit Information Bureau (India) Limited (CIBIL) launched 'Mortgage Check' to help banks identify fraudulent loan applicants.

Multiple choice

A scheduled Urban Co-operative Bank can mobilize deposits from a non-scheduled Urban Cooperative Banks to the extent of……………………..of its total demand and time liabilities in preceding year—

  1. 10%

  2. 15%

  3. 20%

  4. 25%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

RBI regulations limit the amount of deposits a scheduled UCB can mobilize from non-scheduled UCBs to 10% of their total demand and time liabilities from the preceding year to ensure liquidity and stability.

Multiple choice

Non-scheduled Urban Co-operative Banks can have deposits in those non-scheduled Urban Co-operative Banks

  1. That have earned Net Profit in last three Financial Years.

  2. That have NPA level of below 7%.

  3. That have Capital Adequacy Ratio of 9% or more.

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

To ensure the safety of funds, non-scheduled UCBs are permitted to deposit funds in other non-scheduled UCBs only if those banks meet strict financial health criteria, including profitability, low NPA levels, and sufficient capital adequacy.

Multiple choice

Which of the following statements is correct regarding Central Cooperative Banks?

  1. These banks are established under Co-operative Societies Act 1912.
  2. Each district has a Central Co-operative Bank whose Capital is owned by Primary Co-operative Societies.
  3. These banks, like other banks, mobilize public deposits and provide short term loans to their customers.

  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Central Co-operative Banks are established under the Co-operative Societies Act, operate at the district level with capital from primary societies, and function like commercial banks by taking deposits and providing short-term loans.