CAIIB BFM DISCUSSION UNIT 3 CORRESPONDENT BANKING & NRI ACCOUNTS

Here is a collection of some questions from UNIT 3 CORRESPONDENT BANKING & NRI ACCOUNTS, will update more time to time.Happy Reading :)

1. .......... is the relationship between two banks which have mutual accounts with each other.
Ans- Corresponding Banking

2. Which of the following is the funtion of corresponding bank among :
a) accounts services   b)LC confirmation  c) clearing house functions
d) Investment services

options :
i)only d
ii)only c
iii)a and b
iv)all
Ans-all

3. "Our Account with You " is :
a) Nostro Account
b) Vostro Account
c) Loro Account
d) Mirror Account
Ans- Nostro Account

4. "Your Account with Us" is:
a) Nostro Account
b) Vostro Account
c) Loro Account
d) Mirror Account
Ans- Vostro Account

5. RMA Full form ??
Ans- Relationship Management Application

6. SWIFT FULL Form?
Ans- Society for the Worldwide Interbank Payment System

7. FEDWIRE is the payment system of which bank?
Ans- Fedral Reserve Bank

8. All US banks maintains accounts with Federal Reserve Bank are allotted which number to identify sender and reciever?
Ans- ABA NUMBER

9. CHIPS full form :
Ans- Clearing House Interbank Payment System

10. ABA Transit Number is assigned by whom ?
Ans- American Bankers Association

11. CHAPS is based in which Country ?
Ans- LONDON

12. CHAPS Full Form ?
Ans- Clearing House Automated Payment System

13.TARGET full form ?
Ans- Trans European Automated Real Time Gross Settlement Express Transfer System

14. ......is a cross Border Euro Payments?
Ans- EBA-Euro1

15. Fedwire is a ..... system in US and is operated by .....?
a) clearing,US BANKS
b)payment, Us Govt.
c)Payment, US Banks
d) Payment,US Fedral reserve Bank
Ans- d

16. Interest and principal can be repatriated by an NRI, in the following account?
a) FCNR
b) NRE
c) EEFC
d)a and b
Ans- d

17. What is the maximum period for which a Foreign Currency non resident account can be opened by a bank?
ans-5 years

18. A foreign bank (ABC Ltd.) opens a rupee account with a bank's branch in India) This account will be designated in the books of the branch as
(a) Nostro account 
(b) vostro account 
(c) Loro account 
(d) Correspondent account
Ans- (b) vostro account 

19. Which of the following implies Vostro account
(a) Our account with you
(b) Your account with us
(c) His account with them
(d) None of these
Ans- (b) Your account with us

20. The acronym SWIFT stands for
A. Safety Width in Financial Transactions
B. Society for Worldwide International Financial Transactions
C. Society fro Worldwide Interbank Financial Transactions
D. Swift Worldwide Information for Financial Transactions


21. A foreign currency account maintained by a bank abroad is its
A. nostro account
B. vostro account
C. loro account
D. Capital account

22. Non- resident bank accounts refer to

A. nostro

B. vostro

C. loro

D. toro

Discussion 14.1.2019

Bhupendra Singh:
Our Account with you ?

Your account with us

Expand Target..

pinky:
Nostro

Vostro

Bhupendra Singh:
Interest and principal repatriated by which types of NRI accounts ?

pinky:
Trans European Automated Real Time Gross Settlement

Nre and fcnr

Bhupendra Singh:
Fcnr account maximum duration?

pinky:
Five

Year

Bhupendra Singh:
Cross border Euro payments?

pinky:
Eba euro

Bhupendra Singh:
All US banks alloted with no to identify sender and receiver?

EBA Euro 1

pinky:
ABA

Bhupendra Singh:
CHAPS based?

pinky:
Uk

Bhupendra Singh:
Expand chaps

RMA full form?

pinky:
Clearing House Automated Payments system

Bhupendra Singh:
Relationship Management Application

What is Fedwire and used by whom?

pinky:
Payment system of Federal reserved bank

Bhupendra Singh:
ABA transit number is assigned by?

pinky:
Us

FRB

Bhupendra Singh:
American Bankers Association

Expand SWIFT and describe it?

pinky:
Society for Worldwide Interbank Financial Telecommunications

It is a payment system through  authentication of messages between banks

Bhupendra Singh:
CHIPS full form and used by?

pinky:
Clearing house interbank payment system

Payment system operates in the newyork

Bhupendra Singh:
Ok, USA

pinky:
Uk

Bhupendra Singh:
SNRR account stands for

Special Non - Resident Rupee Account

NRIs investment categorized into two segments?

Repatriation and Non Repatriation

What is the limit of repatriation of fund held by NRI in their non resident accounts for a financial year?

Divan Batcha:
Nri 1 million usd

Bhupendra Singh:
upto 1 million USD per financial year

pinky:
But it is a rupee ac

Nd they can park their investment which is generated from home country

If repatriation will be allowed then our currency will be outflow

Bhupendra Singh:
Yes, it may be sale proceeds of immovable property

It's permitted nowadays

Facilities to NRI

LORO account is?

Divan Batcha:
Our account withus

Bhupendra Singh:
Non resident bank accounts refers to??

pinky:
Citi Bank referring to Rupee account of American Express Bank, with SBI Mumbai

Bhupendra Singh:
Rupee Accounts of NRI, which are non repatriable in nature and used for domestic transactions

NRO account

pinky:
Currencies of FCNR -B?

Divan Batcha:
Any convertible currencies

pinky:
Full form of PIO?

Bhupendra Singh:
Person of Indian origin

Divan Batcha:
Person of indian origin

pinky:
Can we issue credit card to NRE customer?

Bhupendra Singh:
FCNR B minimum duration

Yes

Interest on FCNR B account paid within the ceiling of??

pinky:
Normal as prevail in the bank rate

Divan Batcha:
RBi and bank discretion

Bhupendra Singh:
In the directions of Rbi but having certain ceiling that is LIBOR rates for respective currency

SNRR accounts maximum duration

84 months or 7 years