IIBF CUSTOMER SERVICE & BANKING CODES & STANDARDS MCQ COLLECTION

A customer failed to receive cash from the ATM, but found his account was debited. The amount should be reimbursed within a maximum period of
	10 days
	15 days
	12 days
	7 days

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A customer desirous of making a complaint against a bank approaches the staff for the correct procedure. The employee should  refuse to help the customer.  direct him to the Banking Ombudsman.  direct him to RBI.  advise the customer the procedure and time limit for complaint redressal.  A customer approaches a bank for a housing loan and the bank obtains information / report on the customer from the Credit Reference Agencies. The correct procedure to be followed by the bank in case the customer asks for a copy of the report would be:  The bank can refuse to part with the information saying it is confidential.  The bank can share the information if the customer requests and pays for the same.  Customer cannot ask for a copy of the report.  Information is not obtained from Credit Reference Agencies for housing loans.
Mr. X had a 5 year TDR for Rs. 5,00,000 with Bank A maturing on 30.6.2013. Mr. X suddenly passed away on 1.2.2010. The nominee of Mr. X approached the bank with the relevant papers for payment of the deposit. The bank should:
		prematurely close the deposit without any penalty
		pay the amount only on maturity
		prematurely close the deposit and charge penal interest
		close the deposit and pay no interest
The time limit to settle claims in deceased accounts if all the documents are in order is:
	30 days
	45 days
	15 days
	60 days

A Small Scale unit achieved significant profits and wished to prepay Rs. 4,00,000 towards the term loan. The Bank should:

levy prepayment penalty on the repaid amount

not permit prepayment of Term Loans

permit prepayment and not levy any penalty

retain the amount in a fixed deposit and credit interest to Term loan

A customer walks into the branch 5 minutes after the scheduled opening time. He finds the counters empty, the system down and the Branch Manager absent. He questions a sub-staff about it. The ideal response from the staff should be:

Express his helplessness and reply in an indifferent manner.

Tell a story that a member colleague is getting married and everybody has gone to attend the same.

Tell a lie that the system has failed and everybody has gone to the canteen.

Apologise for the inconvenience and ask him to be seated in the meantime.

X Ltd., approached ABC Bank for a working capital loan of Rs.3,00,000 on 18.3.2010. All the documents were in order and as per the check list. The Bank sanctioned the loan on 25.5.2010. X Ltd., lodged a complaint with the Bank for the delayed sanction. Choose the correct option from the following:

Bank is not at fault because sanctioning of loans takes time

Bank is at fault, disposal of credit limits up to Rs.5,00,000 should be done within 4 weeks

Company (customer) is equally at fault since the matter was not followed up

Bank is not at fault since they were busy with annual closing and related matters.

The elements of good delivery of customer service include: i) speed ii) accuracy iii) incentives iv) dress code v) courtesy From the above, which of the following options are most correct?

i, ii, v

ii, iii, v

i, ii, iii

ii, iv, v

Revamping the attitude of the staff to customer implies

Customer Education

Customer Orientation

Customer Service

Customer Revamping

For a rewarding interpersonal relationship with a customer, the most important requirements are: (Choose the most appropriate one)

communication skill, ambience, employees dress, incentives,

core banking, communication skill, ambience, employee’s dress

listening, core banking, communication skill, ambience

communication skill, conflict resolution, persuasion

An NRI customer requests the Branch Manager to open a NRE deposit by email enclosing a signed scanned letter. He finds that the deposit has not been issued even after a week. The Branch Manager should:

advise the customer to contact the staff concerned directly.

try to cover the lapse and deny receiving the mail.

promise to look into the matter and get back immediately

advise that the system is overloaded and email requests will not be entertained

A bank subscribing to the BCSBI Code should inform the customer regarding the details and terms of i) Loans at fixed rates of interest ii) Loans at floating rates of interest iii) Interest on deposits From the above, which of the following options are correct?

ii only

i , ii , iii

i , ii

iii only

Normally, changes to Terms and Conditions are to be made with prospective effect giving notice of

1 month

3 month

2 month

15 days

Talwar committee recommended the introduction of

Core banking

Teller System

Credit cards

ATMs

Maximum complaints received by Banking Ombudsman generally relate to

Credit cards

Non adherence to fair practices code

Behaviour of staff

Delay in providing loans and advances

The prescribed time schedule for redressal of general complaints is:

15 days

60 days

30 days

20 days

The Banking Ombudsman is appointed by

IBA

Government of India

RBI

Supreme Court

Branches can improve their image by i) organizing customer meet regularly ii) attending to only high profile customers iii) not accepting criticism iv) participating in local fairs and exhibitions From the above, which of the following options are correct?

i, iv

i, ii,

iii, iv

ii, iv

Banking is a …………. oriented industry

people

staff

incentive

system

A foreigner who cannot speak English walks into a branch for encashment of Traveller’s cheques. (Choose the appropriate option from among the following)

The staff should refuse to encash the TCs

The staff should send the customer to another bank

The staff should try to communicate with the customer as much as possible and understand his needs

The staff should refer the customer to the Head Office

On the Branch Manager’s first day at a rural branch, a customer meets him for a tractor loan. The appropriate action by the BM would be:

the BM should not sanction any loan on the first day

he should tell the customer that he doesn’t know anything about tractors and decline the loan

he should direct the customer to meet the counter staff

he should listen to the proposal and promise to consider it at the earliest

As per RBI / BCSBI, Customer Service Day is observed

every quarter

on 15th of every month

on 1st of every month

once a year

The two major customer service committees were:

Talwar committee, Tandon committee

Rangarajan committee, Tandon committee

Talwar committee, Goiporia committee

Goiporia committee, Rangarajan committee

A customer wrote the date on a cheque in Hindi, in the following manner, ‘Asadha 10, 1933’. What should the paying banker do when presented with the cheque?

Cheque should be accepted for payment if otherwise in order

Cheque should be returned to the customer.

Customer should be asked to replace the cheque with a fresh cheque with English date.

Cheque should be cancelled and destroyed.

As per extant rules for the purpose of calculation of interest on domestic term deposits, repayable in less than 3 months; for a leap year:

the actual no. of days should be reckoned at 365 days

the actual no. of days should be reckoned at 366 days

banks are free to adopt their methodology with information being provided to customers.

the actual no. of days should be reckoned at 360 days

Failure to recredit customer’s A/c in case of failed ATM transaction will entitle the customer to receive compensation at _______ per day by the card issuing bank.

Rs. 250.00

SB Interest rate

OD Interest rate

Rs. 100.00

Nomination facility is available across a wide variety of banking services. Select the incorrect option from among the following regarding nomination in respect of deposits.

Nomination is intended for individuals including sole proprietory concern.

Nomination can be made only in favour of individuals

A joint deposit account can have more than one nominee

In joint deposit A/c, nominee’s right arises only the death of all depositors.

Bank’s should obtain and keep on record photos of all depositors with certain exceptions. Choose the incorrect option in respect of the exception.

Local authorities

Pardanashin women

Staff members

Govt. departments

A committee was constituted by RBI, in 2010, under the chairmanship of Dr. / Shri__________ to look into the customer service aspects.

M. Damodaran

Usha Thorat

C. Rangarajan

A Vaidyanathan

Customer has been defined under _______

BR Act, 1949

Indian Contract Act, 1872

Negotiable Instruments Act, 1881

There is no statutory definition under the BR Act, 1949 or any other relevant Act

The right of setoff cannot be exercised by a bank if ________

The funds are in the same right and belong to the customer

There is an agreement between bank and customer to exclude the right of set off

Debts are due and not contingent

Debts have crystallized

 Which is the Statute/Act applicable in the rights of a bank as bailee? Bankers Books Evidence Act, 1891 RBI Act, 1934 Negotiable Instruments Act, 1881 Indian Contract Act, 1872

Partnership firms whose liability does not extend to their personal assets are called _______ firms.

Limited Partnership

Liabilities Partnership

Limited Liabilities

Limited Liabilities Partnership

A private limited company has __________ shareholders.

2 to 50

1 to 49

7 to 51

2 to 51

OCBs are directly/indirectly owned by __________ to the extent of at least ____%

PIOs, 75

NRIs, 60

PIOs, 50

NRIs, 50

FCNR accounts can be opened as ________

Savings Bank account also

Savings Bank or Current Account

Term Deposit only

Any of the above

ATM stands for _____

Any Time Money

Automated Teller Machine

Automatic Transfer of Money

Automatic Teller Money

The maturity proceeds of a TDR should be credited to the Current A/c or SB A/c of the depositor if the amount exceeds Rs. _____

50,000

20,000

25,000

75,000

Life Certificate in respect of pensioners is obtained once every year in _____

March

November

January

April

Nomination facility is not available for _______

Deposit A/cs

Articles in safe custody

Safe deposit vaults

Cash credit A/cs

PIN stands for _______

Personal Information Number

Personal Identity Number

Personal Identification Number

Personal Index Number

The maximum amount which can be remitted through NEFT is _______

Rs. 10 lacs

Rs. 20 lacs

Rs. 25 lacs

There is no upper limit

The minimum amount that can be transmitted under RTGS is ______

Rs. 1 lac

Rs. 2 lacs

Rs. 10 lacs

There is no lower limit

WWW refers to ______

Wide Web World

World Wide Web

World Web Wide

Web Wide World

The period of credit in respect of debit cards is _______

10 days

5 days

2 days

Non-existent

An ante-dated cheque if presented for payment after expiry of the validity period can be paid if it is revalidated by ______

The collecting banker with seal and signature

The drawer under his signature

The payee with his signature

Any one of the above

A special crossing on a cheque consists of _________

Two parallel transverse lines

The words ‘ Ac/ Payee only’ between two parallel lines

The name of a banker across the face of the cheque

The words ‘and company’ between two parallel lines

A torn cheque has been presented for payment. The paying bank can pay the cheque if _________

i. The drawer confirms mutilation
ii. The collection banker confirms mutilation
iii. The payee confirms mutilation
iv. Clearing House confirms mutilation

Choose the correct option i or ii above i or iii above ii or iv above i or iv above

BCSBI is registered as a _______
									Society
									Company
									Institution
									Trust
BCSBI code of commitment provides that Current/Savings Bank a/c’s should be closed within _____ days of receiving the application.
											1
											3
											7
											10
Photographs need not be insisted for _________ a. minors, only guardians photo needs to be obtained b. local authorities c. staff members Choose the correct option:
										a,b, c
										a,c
										a,b
										b,c
Pension accounts are eligible for _____ % concession in minimum balance requirements as well as in service charges.
								50
								60
								100
								25
In case of payments in deceased a/c’s, no sureties are required for claims upto Rs. ______
							100,000
							25,000
							200,000
							50,000
FCNR deposits cannot be opened in _________
						Indian Rupee
						New Zealand Dollar
						UAE Dirham
						Hongkong Dollar
The BCSBI has been set up to ___________
					Provide redressal mechanism to customers for non-compliance of the codes
					Look into complaints to the extant it points to any systemic failure in compliance with the codes
					Provide additional grievance mechanism, in addition to the Banking Ombudsman, for deficiency in customer service
					None of the above
Which of the following are legally permissible circumstances in which a bank can disclose the affairs of its customers?
				Under Banker’s Books Evidence Act, 1891
				In public interest
				Disclosure in the interest of the bank itself
				All the above.
A branch cannot acquire a successful image through __________
			Random customer meets
			Participation in fairs
			Association with social activities of academic institutions
			Acceptance of appreciation as well as criticism for its services with grace
The minimum period of a TDR is ____ days
		7
		10
		15
		3
Bankers Cheques/ Drafts cannot be paid in cash if the amount is Rs. _____ and above
	20,000
	25,000
	50,000
	75,000

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