ABM UNIT 33 : Rehabilitation and Recovery

Discussion : 30.09.2018
Contributors:
Meenakshi, Selvaraj T, Tt,Manju, Stuti,Ashish,Devil

..... means the inability to meet commitments in relation to lending ,trading or any FI
Ans- Credit Default

CDR full form?
Corporate Debt Restructuring

CFSA full form?
Committee on financial sector assessment

wilful deafulters??
who have ability to pay bt still not pay
Doesnt pay intentionally though he has the capacity

when was SARFAESI ACT come into force?
2002 21 June

BIFR?
Board of industrial n finamcial reconstruction

upto which amount of loan of settlement is preferred in lok adalat?
20 Lakh revised

CDR group will prepare the restructuring plan for consideration within..... days
Ans- 30 days

...... to decide where rehabitation is feasible or not ??
1 month

CDR system is divided into how many tiers?Name them.
Ans- 3
Cdr standing forum n its core group. Cdr empowered group n cdr cell.

CIBIL was set up by which bank??
SBI

In case of guarantees or letter of credit,credit default means crystallisation of liability.true/false
False

Assets are classified in how many categories?
Performing and non performing
Standard-performing
non performing-sub standard, doubtful,loss asset

PCR?
Provisioning coverage Ratio

Abbreviation of CRILC?
Ans- Central repository information on large credit

the DRTs are meant for recovery of dues of the banks and financial institutions only.true/false
Ans- true

Banks inform their non-cooperative borrower  to crilc with in___________________?
With in 21days.

ARCIL?
Ans- Asset Reconstruction Company (India) limited

Steps followed by banks in stressed assets?
1. Exit from account
2. Reschudling / restructuring
3. Rehabitation
4. Compromise
5. Legal Action
6. Write off

Drt claim amount?
10 lk+

Sale of financial asset by bank to____________?
Reconstruction company

Can lending institution  publish defaulter photo?
Yes, wilful defaulters only

.. We did our best in sharing qusetions. if any any ans is wrong, or want to share more,, mention in comment section.

CAIIB ABM UNIT 30 credit Delivery

Discussion :27.09.2018, Correct me for any mistake and share more question in comments. Happy Reading :)

In case of company ROC registered with in
30 days
45 days
60 days
90 days

Ans- 30 days

which type of account is opened  for providing working capital limits?
a. savings
b. cash credit

Ans- B  Cash credit

the stamp duty varies from state to state?true.false

Ans- True

who charges syndication fee from the borrower?
a. lead bank
b. Sharing bank
c. gurantor
Ans- Lead bank

Hypothecation is for
Movable
Immovable
Ans- Movable

Difference between consortium n syndication lending?
Consortium is only for WC and syndication is for both
Consortium too many banks come together for a large loan. Syndication where borrowerr approaches lead bank n lead bank wil then appr0ach other banks

Multiple or consortium for large loans
True
False

Ans- True

Assignment for
Gold
Lic
Vehicle
Land

Ans- Lic

Third party guarantee can be individual only
True/ false?

False, Legal entity too

Stamp duty varies state to state
True
False
Ans- True

Constructive possession?
Pledge where borrower have possession

Multiple banking?
Multiple Banking is a bankingarrangement where a borrowal avails of finance independently from more than one bank. Thus, there is no contractual relationship between various bankers of such borrower.

% of loan components for working. Capital credit limit 10 cr & above?
80%

Consortium banking & multiple banking are same.
True/ false

Date of execution should be  __ than date of stamping
never be earlier

Rbi encourages multiple/consortium banking for small loans...true/false
false

Date of execution of documents should never be earlier than date of stamping

Can documents filled after sign of borrower?
No

rbi encourages large amont of loans under consortium/multiple banking


Difference between loansyndication and consortium finance

CAIIB ABM UNIT 32 : Risk Management And Credit Rating

Discussion 28.09.2018

 CDR?
Corporate Debt Restructuring

Cln?
Ans-Credit Linked Notes

Political risk is external or internal factor?
Ans- External

Adverse market movement which type risk?
Market Risk

Natural Calamity causes which risk ?
Ans- Operational

Fixing exposure limit is macro or micro level step for mitigation cr risk?
Ans- Macro

Difference between internal & external ratings
Below 5cr internal rating and above 5cr ext rating
External cr rating mainly based on rating agencies

Credit rating is a system of
a. Measuring risk
b. mitigating risk
c. Migrating Risk
d. credit Appraisal
Ans-a

ISDA?
Ans-International swap & derivatives association acceleration

Credit rist hedging derivatives are........?
Ans- CRT CDS CDO CLN

Din?
Director identification number

CRESAI? CRESAI defines under which act?
Central Registry of securitisation asset reconstruction and security interest of India,Sarfaesi 2002

Rbi guidelines___________cds are allowed?
Plain Vanilla
Cds issued only in plain vanilla

Cibil was set up by which banks ? & When?
Ans- SBI in association with hdfc in January 2001

____ Approach already adopted by all banks
Ans-

Cibil now changed to________?
Ans- TransUnion CIBIL LTD

Membership & annual fees for CI's
Ans- 10000 and not exceed 5000

Crilc?
Ans- Central respository information on large credit

Exposure Limit under crilc
5 crore and above

How many CIC in India?
Ans-4

Crop loan included or exempted in CRILC?
Exempt or exclude

CRILC set up by.....?
RBI

Rbi guidelines reporting current account balance?
1cr and above

IRB?
internal rating based

Limit for Willful defaulter cis required to submit?Also mention time period ?
25lac & above,Time not later than month from reporting date

Thanks team.-Selvaraj T, Sandeep Nikam, Sonal, Tt,Lalu Poddar, Manju, Roselin,Devil,Divan Batcha,Sugitha

Correct me for any mistake. Add more qus in Comments.

CAIIB ABM UNIT 31 – Credit Control and Monitoring

Discussion 28.09.2018

1. Which of the following is not a purpose of credit monitoring? The choices are:

(a) To ensure end use of the funds by the borrower

(b) To detect any deterioration in the security charged to the bank

(c) To comply with the guidelines of the RBI

(d) To ascertain that the business continues to run on the projected lines

The correct choice is..  (c) To comply with the guidelines of the RBI

2. Which of the following is not a tool available to check the bank for credit monitoring?

The choices are:

(a) Sending regular reminders to the borrower

(b) Periodic visits to the business place for inspection

(c) Analysis of financial statements

(d) Examine conduct of borrower's account

The correct choice is..  (a) Sending regular reminders to the borrower

3. Which of the following is not a method for detecting wrong mention of inventory in a stock statement? The choices are:

(a) Stock audit

(b) Inspection of stocks

(c) Analysis of financial statements

(d) Cross-check from the balance sheet figure

The correct choice is (c) Analysis of financial statements

4. Which of the following is not a method for detecting wrong mention of receivables in stock statement submitted by the borrower? The choices are:

(a) Analysis of financial statements

(b) Cross check from the balance sheet figure

(c) Receivables audit

(d) Inspection of books of account

The correct choice is..  (a) Analysis of financial statements

5. Which of the following is not a danger sign about the direction of business of the borrower? The choices are:

(a) Devolvement of L Cs, invocation of Bank Guarantees

(b) Demand for higher limit

(c) Delays in submission of stock/receivables statements

(d) Return of cheques or bills

The correct choice is.. (d) Return of cheques or bills

6. Which of the following is not an unsatisfactory sign in conduct of the account of the borrower? The choices are:

(a) Delay in payment of interest or instalments,

(b) routing of transactions with some other bank

(c) Frequent over drawings

(d) High turnover

The correct choice is (d) High turnover

7. Which of the following is not the purpose credit audit? The choices are:

(a) Improvement in the quality of credit portfolio

(b) Review sanction process and compliance status of large loans

(c) Feedback on regulatory compliance

(d) Stock inspection

The correct choice is (d) Stock inspection

8. Purpose of appointing bank’s nominee on company’s board of borrowing company is:

The choices are:

(a) To keep a tab on the important decisions of the board

(b) To be a part of the management

(c) To guide the company for better working

(d) To safeguard the securities charged to the bank

The correct choice is (a) To keep a tab on the important decisions of the board

9. Sonal: Which is not a rating agencies

CARE
ICRA
ISDA
CRISIL
SMERA
Ans- ISDA

10. ........... is an examination of various credit functions of bank.
Ans- Credit Audit

11. Sonal : Legal audit of title of documents in respect of large value loan amount up to
5 crore
2 crore
5 crore & above
Up to 5 crore
Ans-5 crore & above

12. Sandeep Nikam: Frequency review for 
High
Medium 
And low risk
Ans- 3 months, 
6 months, 
1 yr

13.  Sandeep Nikam: Audit report should be submitted ? Duration ?
Ans- Half Yearly

14. Sonal : Drawing power calculate on the basis of .......?
Ans- Stock & receivable

15. Sugitha : Credit auditors ....... Required to visit borrowers factory/ office premises
Ans- not required

16. Explain deterioration of security
Ans-

Correct me for any mistake. Update more qus in comments.

Thanks Team - Selvaraj T, Sandeep Nikam, Sonal, Tt,Lalu Poddar, Manju, Roselin,Devil,Divan Batcha,Sugitha

ABM UNIT – 29 Term Loans

Discussion 26.09.2018

1. A D G P is issued by the bank for ----------, by its client.

The choices are

(a) Sale of goods

(b) Purchase of goods

(c) Sale of capital goods

(d) Purchase of capital goods

The correct choice is (d) Purchase of capital goods

2. Which of the following statements is not true for an infrastructure project?

The choices are

(a) It has long gestation period

(b) It reduces the risk for the lender as his funds get assured deployment for a long time.

(c) The debt equity ratio is normally high for an infrastructure project

(d) The implementation period is usually long

The correct choice is (b) It reduces the risk for the lender as his funds get assured deployment for a long time.

3. Which of the following is not a source of funds for meeting the cost of fixed assets by an enterprise?

The choices are

(a) Credit by supplier of assets

(b) Internal accruals

(c) Debentures

(d) D P G

The correct choice is (d) DPG

4. Which of the following is ratio, indicative of the repaying capacity of a borrower?

The choices are

(a) Quick ratio

(b) T O L/T N W

(c) D S C R

(d) D E R

The correct choice is (c) D S C R

5. Which of the following is not correct regarding term loans by the banks?

The choices are

(a) Asset liability matching is an important consideration in term financing

(b) Installment of term loan, payable within one year is considered as current liability

(c) Repayment of a term loan can be in equated monthly instalments

(d) Current ratio is the most important ratio in appraisal of a term loan

The correct choice is (d) Current ratio is the most important ratio in appraisal of a term loan

6. Project loans can be given by the bank to

The choices are

(a) Only corporates

(b) Only corporates and partnership firms

(c) Only corporate, partnership firms and societies

(d) Any business entity

The correct choice is (d) Any business entity

7. Which of the following is not correct regarding infrastructure project by the banks?

The choices are

(a) Banks are allowed to funds promoters' equity in certain circumstances

(b) Exposure norms are relaxed by R B I

(c) Asset liability mismatch has been permitted by R B I

(d) I D F C provides liquidity support to banks

The correct choice is (c) Asset liability mismatch has been permitted by R B I

8. Which of the following statements is not correct for project appraisal?

The choices are

(a) Examination of technical feasibility is carried out

(b) The contribution of promoters forms a part of economic appraisal

(c) Promoters' background is part of the management appraisal

(d) Capacity of promoters to arrange for additional funds, in case of contingencies, forms a part of economic appraisal.

The correct choice is (d) Capacity of promoters to arrange for additional funds, in case of contingencies, forms a part of economic appraisal.

*********************************************************************************

9. Term loans are sanctioned to finance which type of assets?
Ans- land building vehicles

10. Which ratio is important for the purpose of sanctioning term loans?
Ans- Debt Service Coverage Ratio

11. Which of the following is a part of economic appraisal?
a. return on investment
b. internal rate of return method
c. pay back period method
d. break even analysis
Ans- d

12. Which of the following is not correct regarding term loans by the banks?
a. asset liability matching is an important consideration in term financing
b. Installment of term loan , payable within one year is considered as current liability
c. Repayment of a term loan can be in equated monthly instalments
d. current ratio is the most important ratio of a term loan
Ands- d

13. Select the incorrect sentense
1. Term loans are provided for acquiring the fixed assets.
2. Working capital term loans are provided for sustaining current assets.
3. Term loans are payable as per demand.
4. Working capital term loans are payable as per repayment schedule.

a. both 1 and 2
b. both 2 and 3
c. both 3 and 4
d. both 1 and 4
Ans- c

14. Which of the following is not correct regarding infrastructure project by the banks?
(a) Banks are allowed to funds promoters' equity in certain circumstances
(b) Exposure norms are relaxed by RBI
(c) Asset liability mismatch has been permitted by RBI
(d) MFG provides liquidity support to banks
Ans-c

15. infrastructure sector deals under which act n section?

Ans- Section 10 IT Actd

SELVARAJ T:
Wctl?

Meenakshi:
working capital term loan

SELVARAJ T:
Purpose of matching asset and liabilities,term loan consider as______?

Meenakshi:
deemed advance??

SELVARAJ T:
Bullet repayment?

Meenakshi:
entire payment in 1

instalment

SELVARAJ T:
Long term asset

Dpg?

Meenakshi:
deferred Payment gurantee

SELVARAJ T:
Dscr formula?

sonal:
PCE ?

Meenakshi:
sales/ratio

Roselin:
Partial credit enhancement

sonal:
Partial credit enhancement is fund base or non fund base?

Non fund base

DCCO?

Date of commencement of commencement of commercial operation

Sohini:
Wat is working capital term loan?

Meenakshi:
when bank provide term loan for current assets

sonal:
What is BEP?

Roselin:
Break even point

Neither profit nor loss

Sohini:
No profit no loss situation

sonal:
Break even point.a situation where neither profit nor loss.higher BEP is more risky

Sohini:
What r d 3 steps of project financing?

sonal:
Economic appraisal

Roselin:
Technical appraisal

Sohini:
Managerial appraisal

Correct me for any mistake... add more qus

ABM UNIT 28 : Working Capital Finance

Discussion 25.09.2018

1. Net Working Capital (N W C) means …

The choices are:

            (a) Total current assets minus bank finance

            (b) Total current assets minus credit from suppliers

            (c) Total current assets minus total current liabilities

            (d) Short term sources brought in by the promoters

The correct choice is: (c) Total current assets minus total current liabilities

2. Which of the following statements is not true for efficient inventory management?

 The choices are:

          (a) It results in reduction in inventory

          (b) It reduces the working capital requirements of the enterprise

          (c) It reduces the N W C available with the enterprise

          (d) It increases the Inventory Turnover Ratio if the level of sales remains same.

The correct choice is: (c) It reduces the N W C available with the enterprise

3. Which of the following is not a source for meeting working capital requirements?

The choices are:

(a) Suppliers' credit

(b) Bank finance

(c) Other current liabilities

(d) Advance payment to suppliers

The correct choice is: (d) Advance payment to suppliers

(4) Which of the following is a liquidity ratio?

The choices are:

(a) Quick ratio

(b) T O L / T N W

(c) D S C R

(d) Other current liabilities

The correct choice is: (a) Quick ratio

(5) Which of the following is not correct regarding Current Ratio?

The choices are:

(a) For same level of current assets, increase in N W C results in increased current ratio.

(b) The current ratio can be less than one

(c) The current ratio can be negative

(d) Current ratio is an indicator of liquidity

The correct choice is: (c) The current ratio can be negative

(6) The commercial paper can be issued by

The choices are:

(a) Corporates

(b) Corporates and partnership firms

(c) Any business entity

(d) None of the above

The correct choice is: (a) Corporates

(7) Which of the following is not correct regarding Forfaiting? The choices are:

(a) It a form of working capital finance

(b) It is used in export finance

(c) It is with recourse to the drawer of the bill

(d) Under this financier discounts the bills drawn on buyer.

The correct choice is: (c) It is with recourse to the drawer of the bill.

(8) Which of the following is correct regarding Letters of  Credit. The choices are:

(a) These are opened by a bank for export sales by the client

(b) These are opened by a bank for local sales by the client

(c) Letters of Credit do not carry much risk for the opening bank

(d) Letters of Credit are opened by a bank for purchase of goods by the client

The correct choice is: (d) Letters of Credit are opened by a bank for purchase of goods by the client.

(9) Under Turnover method of assessment, the limit is sanctioned at per cent of the projected turnover. The choices are:

(a) 25    (b) 20    (c) 30     (d) 35

The correct choice is: (b) 20

(10) Cash budget method of assessment is more suitable for those business enterprises which have ….  The choices are:

(a) uniform level of operations

(b) High level of operations

(c) Low level of operations

(d) Seasonal operations

The correct choice is: (d) Seasonal operations.

11. What are the methods for bank finance??
Ans- Holding Norms based method , Cash Budget method,Turnover method of assessment

12. Gross working capital?

13. Sohini:What r the 3 methods for calculating bank finance according to tandon committee?
Ans- Holding Norms based method , Cash Budget method,Turnover method of assessment

14. Roselin:Total requirement of current asset

15. SELVARAJ T: Net working capital?
Ans- amt arranged by long term funds

16. Meenakshi : Ssi units have working capital limits upto ...
Ans- : It is 7 crores as per recent changes

17. Sohini: Which method is used for calculating bank finance for working capital limit upto 5crore to MSE??

18. Manish Kumar Sharma: Under projected turn-over method of Nayak committee,the working capital is-______
A.min 25% of the projected turnover
B.min 20% of projected turnover
C.15% of the projected turnover
D.5%of the projected turnover
Ans- a

19. Meenakshi:..... method is used for seasonal industries
Ans- Cash budget

20. Meenakshi: receivables are part of ..... assets
Ans- Current

21. Meenakshi: who willl sanction working capital limits?
bank
rbi
board of directors
Ans- Banks

22. Meenakshi: SFMS full form??
Ans- Structured financial messaging system

23. Meenakshi:value dating is used for what rsn??
board of directors will formulate the policies bt here ans is banks

24. Meenakshi:The conduct of lc business is governed by .....??
Ans- UCP 600

25. Meenakshi:...... is estimated by examining the sources of supply, means of transport,discount etc
Ans- eoq
economic order quality

Correct me for any mistake and share more questions.

ABM unit 26 overview of credit management unit 27 analysis of financial statements

Discussion 24.09.18

1. After nationalisation of banks,RBI was able to exercise ______ control on banks in credit matters
lesser
more
same
no
Ans- more

2. Individuals follow which act
a. Indian partnership Act
b. societies Registration Act
c. waqf Act
d. Indian Contract act
Ans- d

3. Collateral free loans up to ....?

4. Weaker section Target as per Priority Sector guidelines:
Ans- 10% of ANBC or CEOBE whichever is higher.

Balance Sheet is a statement of Assets and Liabilities or statement of Sources and Uses
(a) as on a date (b) as on 31st March (c) for 12 months (d) for a particular period (e) none of these
Ans-a

Assets can be represented as :
(a) uses of funds (b) sources of funds (c)what the business owns (d) both (a) and (c) above
Ans- d

Liabilities can be represented as :
(a) sources of funds (b) uses of funds (c) what the business owes *(d) both (a) and (c) above

RBI announces its monetary at....
begining of financial year

MPBF?
Ans- Maximum permissible bank finance

Interest rates , regulated by RBI are applicable for credit limits upto Rs .... lakh
Ans- 2 Lakh

A bank cannot grant any loans and advances on the security of its own shares under the provisions of:
a. Section 19(B) of Banking Regulation Act Section,
b. 21(3) of Banking Regulation Act
c. Section 20(1) of Banking Regulation Act Section ,
d. 21(B) of Reserve Bank of India Act
Ans- c

No penal interest should be charged loan up to ?
25000

Exposure ceiling limits for individual?
15% of capital fund

Which act prescribed the format of balance sheet?
Ans- Companies Act

Sub target for micro enterprises?
7.5

Credit policy announces by RBI...?a.yearly b. Twice a year c.quaterly d.half yearly
Ans-b

Housing loan limits under priority sector ? Both for metro & other
Ans- Metro up to 28 lac for individual & overall 35lac & 5lac for repair
Other 20lacs & 25lac overall & 2lac repair

MCLR?
Marginal Cost of Lending rate
1st April 2016

How mclr is calculated

Credit  exposure ceiling limit for individual?

Mclr will comprise of?
Marginal cist of fund
Negative crr
Operating cost
Tenure premium

Target for domestic banks for advances to weaker section?
10% of ANBC or Credit equilent amount

Clss?And rate of subsidy?
Credit linked capital subsidy scheme,15prcnt

Upto what amount collateral not required under msme act
10

Composite loan limit?
Max one crore

Kvi ? And which priority sector is it classified?
khadi n village industries sector, priority sector

TReDS?
Trade receivable discounting system
TReDS is an online mechanism for facilitating the financing of trade receivables of MSMEs through multiple financiers.

What is ps target of m/s farmer
8 %for small & mf
18 % of anbc agriculture

Difference between small & marginal farmers?
Marginal farmers below 1hectare
Small farmers 1-2hectare

No service charges on loan up to?
Rs 25000 ps loan

Small enterprises investment in manufacturing?
25 lakh to 5 crore

Types of reserves?
General reserve ,capital reserve, revaluation

Fair practice codes are mandatory or not?
Mandatory

Preliminary expenses which type of asset?
Intangible

FDR's ?Which assets?
Current

Net worth=?
excess of assets over liability
Assets- Liability

Security deposit?


Liquidity ratio describe ?
Current ratio n quick ratio
It examine borrower liquidity position over 1 yr



Correct me for any mistake . and add more qus in comment section.

CAIIB BFM Unit 25 : Supervisory review

1. SRP full form?
Ans- Supervisory Review Process

2. SRP objective?
Ans- i)bank should have adequate capital to support all the risks in their business
ii) to encourage banks to develop and use better risk management techniques for monitoring and maintaining their risks

CAIIB BFM Unit 24 Capital Adequacy - Basel II Overview

Market discipline involves disclosure should be made on ... basis
a. half yearly
b. yearly
c. monthly
d. quaterly
Ans- a

Tier 1 capital is also known as
ans- Core Capital

tier 2 capital is also known as
Ans- supplementary capital

Which approach is used for credit risk?
a. standardised approach
b. Basic Indicator approach
c. Standarised Duration approach
Ans- a

Which approach is used for operational risk?
a. standardised approach
b. Basic Indicator approach
c. Standarised Duration approach
Ans- b

Which approach is used for market risk?
a. standardised approach
b. Basic Indicator approach
c. Standarised Duration approach
Ans- c

Supplementary capital comprises subordinated debt of more than .... years maturity?
Ans- 5

Formulae of Risk Weighted Assets?
Ans- Risk weight for credit risk+12.5*capital req for market risk+12.5*capital req for operational risk

How Many pillars are there in basel 2?
Ans- 3

Name the 3 pillars of Basel 2.
Ans- Minimum capital requirements, supervisory review process,market discipline

Tier 3 capital allowed by rbi.
Ans- Presently not

..... bank is defined as a group of entities where a licenced bank is a controlling entity.
Ans- Consolidated Bank

Basel 2 capital requirements apply to .....banks
Ans- Internationally active banks

Small Ticket loans?
Ans- Retail lending

Basel 1 Accord weakness?
100% risk weight for all corporate loan and only credit risk was covered

Short term bond maturity period in TIER 3?
Ans- 2 years

Capital adequacy ratio formula?
Regulatory capital/total risk  weighted asset

Basel 1 made in .....and Vogue for ....Years?
1988,15 years

CAIIB BFM : Unit 23 Banking Regulation and Capital

1. BIS full form?
Ans- Bank of International Settlement

2. BIS Accord was given in which year?
Ans- 1988

3. Which is the first attempt to set international risk based standards for capital adequacy?
Ans- BIS Accord

4. BCBS full form?
Ans- Basel Committee on Banking Supervision

5. Acc to Basel -1 accord .... percent of CRAR was prescribed for international banks.
Ans- 8%

6. In India , banks are required to maintain minimum .... percent CRAR.
Ans- 9%

7. Capital adequacy is split in two categories for which purpose.
Ans- Supervisory

8. Certain Reserves and Subordinated debt are included in which tier?
Ans- Tier2

9. Share capital and undisclosed reserves are included in which tier?
Ans- Tier 1

10. Perpetual Non- Cummulative Preference Shares are included in which tier?
Ans- Additional Tier 1

11. DTA is tangible/ intangible asset?
Ans- Intangible
( Deferred tax Asset)

12. Which buffer is created by banks in good time?
Ans- Countercyclinal Capital Buffer

13. .... risk creates ripple effect.
Ans- Systematic Risk

14. In calculating which ratio both the balance sheet and non balance sheet items are considered.
Ans- Cooke Ratio

15. Banks are required to maintain capital conservation buffer of .... percent?
Ans- 2.5%

16. Intangible assets will be deducted from?
Ans- Tier 1

17. Tier I is also called as?
Ans- Core capital

more qus will be updated shortly

CAIIB BFM Module D Unit 22: Components of Assets and Liabilities In Bank's Balance Sheet and Management

Here sharing some questions. Hope you find it useful

1. The strategy of actively managing the composition and mix of assets and liabilities poortfolio is ......??
Ans- Balance Sheet Restructuring

2. .............. is defined as net interest income divided by average total assets.
Ans- NIM - Net Interest margin

3.Which of the following is not a liability?
a.Loan from Nabard
b. Loan to cooperative bank
c. Provision for Bad Debts
d. NRI Deposits

Exam Review : Rbi grade b 15september 2018

ESI Memory based questions RBI Gr B Phase II 2018

1)PPP
2)Fiscal deficit
3) Repo
4) Gdp demand prospective
5)Fiscal policy
6) HDI realised by
7) Consumer goods are called
8) TRIPS administered by
9) Poverty caused by a sudden crisis
10) Agricultural export as per budget
11) First state to conduct multidimensionality poverty
12) Impact of globalization
13) Theory of inflation
14) International organisation created in 1945

Topics/essay asked in RBI mains exam held on 15th Sep 2018


1)Advantages of UPI over money transfer
2)Financial inclusion – A requirement for all ages in India
3)Crowdfunding – the new phenomenon in financing
 4)Positive and negative effects of demonetization on the        Indian economy
5) Measures for promoting microfinance in India

FATF MCQ

Some important MCQ on FATF

1. FATF is an intergovernmental founded in which year?


Ans 1989


2.FATF IS A Initiative of —-?


Ans. G7 summit


3. How many recommendations in FATF?


Ans. 40 on Money Laundering in 1990


09 On Terrorist Financing in 2001


4. President of FATF is a senior official appointed by?


Ans. FATF Plenary


5. FATF President is appointment for how many period?


Ans. For one year


6. Financial year period of FATF President?


Ans. 1st July to 30th June


7. Where is headquarter of FATF?


Ans . Paris ( France)


8.what are the official language of FATF?


Ans. English & French


8. What are the full fledged members of FATF?


Ans. 37(35+2)
35 countries members
02 Regional organisation


9. What are the two regional organisation of FATF?


Ans. 1. EU. European union


2. Gulf corporation council


10. What are the observers of FATF ?


Ans. Israel & Saudi Arabia


11.How many lists are published by FATF?


Ans. 1. Black List -Non-cooperating countries


2. Grey List - High risk& Non cooperative countries


12. Recently Pakistan is listed on which list of FATF?


Ans. Grey List of FATF


13. How many regional FATF?


Ans. 8


14. FATF plenary meets how many times in a year?


Ans. Three times in per year


15.FATF added a new technology term to the vast money laundering lexicon,that is called?


Ans. Cuckoo smurfing


16. What are the initiatives from FATF?


Ans. 1. FIN Tech. 2. Reg Tech


17. When did India became full time membership of FATF?


Ans. Since 2010


18. India is as ————country member of FATF?


Ans . As 34th



19. What are the FATF public document ?


Ans. 1. FATF Public statement


2. Improving Global AML/CFT Complacence


20. FATF Public documents are issued how many times in a year ?


Ans. 3 times in a year


21. What are the typology studies conducted by FATF ?


Ans. 1. Football sector(2009)

2.Free trade zone (2010)

3. Legal professionals (2013)

4.NPO&The Diamond sector(2014)


5. Another area recently on Corruption


22. FATF cell is set up by —-in india ?


Ans. Ministry of finance


23. In india FATF Cell is functioning under which ?


Ans. The department of Economic affairs in ministry of finance


24. When was adopted at a ministerial meeting on the current mandate of FATF 2012-2020. ?
Ans. April 2012


25. 4th Round of mutual Evaluations joint FATF/APG&EAG. Mutual Evacuation of India. What are the tentative dates on site visit?


Ans. In February/March 2021


FATF. - Financial Action Task Force
APG - Asia Pacific Group
EAG - Euro Asian Group

Iibf Exam Review :AML/KYC 15September 2018

1.Difference between Money laundering and terrorist financing

2.which of the following is not  a step of money laundering cycle?

placement

layering

raising

integration

3.which of the following is not a source of financing to terrorist? pg 15

4.which of the following is a member of wolfsberg group

5. which of the following is not a member of wolfsberg group

6.India is a member of which of the following group?-FATF

7.pep pg 41

8.new technologies. pg 42

9.Bank Secracy Act pg 50

10.Austrac pg 52

11.money laundering control act 1986 is under

usa

europe

uk

12.reporting entity means  ... pg 56

13.dept fiu ind

14.Kyc requirement for joint account  with either or survivour- both

15.ovd requirement for trust

16.ovd requirement for company

17.resident definition for pmla is taken from which act

18.beneficial owner

.... table pg 123 qus...

19. timeline to submit of monthly reports is .... 15th of next month

20. timeline for str.. 7dsys

21.reports to fiu ind are sbmitted as... single report..pg 146

22. alert based str pg 147

23 .small account -monthly limit -10000

24.small account based 4option

25.regulated entities.. pg 193

26.under simplified procedure  howmuch time is given for prividing ovd

27.which isnot the work of designated officer

28.ckycr

29. 1 case study from book ...
30.fatf documents how many time in a year . 3times
31.threshold value for company .. 25prcnt pg 93
32.threshold value for trust.. 15 prcnt pg 93
33.india is a member of
apg, catf, eag
34.fatf latest member
35.correspondent banking
36. one acciunt is opened in delhi,cashdeposits from different locations nd withdwals from diff location .. funnel accounts
37.bcbs paper publishmed  in jan 2014 is ... pg 29..
38.Imf pg 26
39.difference betweem aml policy, aml/cft
40.smurfing meaning... deposit in different acc below threshold pg 16

Iibf Exam Review:MSME 15 September 2018

Cgmse cover,
 investment in medium enterprise (manufacturing),
 clcss cover upto,
Tufs for which industry,
textile industry looked by?
wto establishment
current ratio
debt equity ratio
sick industry period
back to back lc
deferred payment gurantee

.......
question of msme certificate exam 15/09/2018 on memory based
1.composite loan
2. Current ratio
3.debt equity ratio
4.wto established
6.shareholder of public Limited company
7.Limited liability company
4.minor partner
9.Basel3
10.Npa doubt full assets
11.Msme act 2006
12.dscr ratio
13.working capital gap
14.gross profit Ratio
15.back to back lc
16.preshipment
17.women enterprinure
18.How many culstor
19.techinical viability
20.ssi comes in which act
21.mudra loan maximum
22.msme collateral free loan
24.Mudra Tarun loan
25.medium enterprises Amount in manufacturing unit
26.same small enterprises
27.performance guarantee
28.deferred payments guarantee
29.Loan Appraisal application
30.how many stages of msme
31.sick industry period
32.hand holding company
33.director of public Limited company
34.Cgtmse on 100 lakh
35.Smera credit rating
36.msme based on which credit rating
37.Otms by
38.Sarface comes
39.sarface works
40.Iso90001
41.cluster stage

COMBINED AML/KYC IMPORTANT REVIEW AND REVISION TOPICS

Aml kyc recollected questions 1st of September 2018
3 steps of basic money laundering cycle
2 questions on funnel accounts
Connected accounts
1 question on wire transfer
1 question on hawala
Non member of Wolfsburg group
Law in UK related to AML
Around 5 questions on 2017 amendments of pmla (already discussed here in this group)
1 question on NI act
1 question on intermediates ( non-intermediaries of options)
1 question on whether to file STR
1 question on who will decide to file STR
Time limit for STR
1 question on enhanced due diligence
Time limit for freezing accounts
Time limit for kyc updation
1 question on juridical persons
1 question on specific beneficial owner
1 question on small account
1 question on cross border wire transfer
CTR time limit for filling
Which report don't have ceiling limits
STR typology
Staff callousness
Principal officer
Kyc aml interconnectedness

AML/KYC Questions 18Aug 2018
Fatf recommendations,
list of Wolfsberg group composition,
PMLA
STR typologies

IIBF EXAM REVIEW : KYC /AML 4Aug 2018

FATF Rules
2017Anendment Updates.. many questions
Trust related
International AML Act Rules

IIBF AML KYC REVIEW 8 July 2018 Exam
FIU - IND

1.Periodicity of risk categorization,   
2.stages of money laundering 2 marks questions almost 4,
3.desidnated director is designated by?,
4.pmla amendments almost 4 questions,
5.str,                           
6.ccr,                           
7.period of retention of transaction,           
8.which banks is not included in Wolfsburg banks,         
9.responsibility of board of directors and PO,
10.reporting entity, transaction means,
11.person means,       
12.which countries need permission to open account,               
13.egmont group,     
14.which laws r in USA legislation,                   
15.act related to Australia,       
16.freezing of assets power lies with whom.     
17,fiu-ind 2-3 questions, 
18.social impact of m/l,
19.which is not stage in m/l,.                 
20.multiple tier account, pep,                     
21.updation of kyc policy,
22.ckycr assign identifier of whom,             
23.legislation supporting aml measure,           
24.shell bank,       
25.elements of kyc policy,               
26.stages of cip,   
27.simplified due diligence,             
28.utility bill,       
29.proprietary firm,     
30.small ac

Previous recollected qus pdf

SOME FULL FORMS IN AML/KYC

 Central KYC Records Registry” (CKYCR)
Central Identities Data Repository” (CIDR)
Officially Valid Document” (OVD)
Non-profit organisations” (NPO)
Common Reporting Standards” (CRS)
Customer Due Diligence (CDD)
FATCA” means Foreign Account Tax Compliance Act
IGA” means Inter Governmental Agreement
Politically Exposed Persons” (PEPs)
Regulated Entities” (REs)
Scheduled Commercial Banks (SCBs)
Regional Rural Banks (RRBs)
Local Area Banks (LABs)
(Urban) Co-operative Banks (UCBs)
State and Central Co-operative Banks (StCBs / CCBs)
Money Transfer Service Scheme (MTSS)
Payment System Providers (PSPs)

SOME DEFINITIONS

“Shell bank” means a bank which is incorporated in a country where it has no physical presence and is unaffiliated to any regulated financial group.

“Wire transfer” means a transaction carried out, directly or through a chain of transfers, on behalf of an originator person (both natural and legal) through a bank by electronic means with a view to making an amount of money available to a beneficiary person at a bank.

"Principal Officer” means an officer nominated by the RE, responsible for furnishing information as per rule 8 of the Rules.

 “Regulated Entities” (REs) means

• all Scheduled Commercial Banks (SCBs)/ Regional Rural Banks (RRBs)/ Local Area Banks (LABs)/ All Primary (Urban) Co-operative Banks (UCBs) /State and Central Co-operative Banks (StCBs / CCBs) and any other entity which has been licenced under Section 22 of Banking Regulation Act, 1949, which as a group shall be referred as ‘banks’
• All India Financial Institutions (AIFIs)
• All Non-Banking Finance Companies (NBFC)s, Miscellaneous Non-Banking Companies (MNBCs) and Residuary Non-Banking Companies (RNBCs).
• All Payment System Providers (PSPs)/ System Participants (SPs) and Prepaid Payment Instrument Issuers (PPI Issuers)
• All authorised persons (APs) including those who are agents of Money Transfer Service Scheme (MTSS), regulated by the Regulator.

Resident”, as defined under sub-section (v) of section 2 of the Aadhaar Act, means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrolment for Aadhaar;

“Suspicious transaction” means a “transaction” as defined below, including an attempted transaction, whether or not made in cash, which, to a person acting in good faith,:

• gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved; or
• appears to be made in circumstances of unusual or unjustified complexity; or
• appears to not have economic rationale or bona-fide purpose; or
• gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.

SOURCE : RBI CIRCULAR

IIBF Exam Review: AML/KYC 1 September 2018

Aml kyc recollected questions 1st of September 2018
3 steps of basic money laundering cycle
2 questions on funnel accounts
Connected accounts
1 question on wire transfer
1 question on hawala
Non member of Wolfsburg group
Law in UK related to AML
Around 5 questions on 2017 amendments of pmla (already discussed here in this group)
1 question on NI act
1 question on intermediates ( non-intermediaries of options)
1 question on whether to file STR
1 question on who will decide to file STR
Time limit for STR
1 question on enhanced due diligence
Time limit for freezing accounts
Time limit for kyc updation
1 question on juridical persons
1 question on specific beneficial owner
1 question on small account
1 question on cross border wire transfer
CTR time limit for filling
Which report don't have ceiling limits
STR typology
Staff callousness
Principal officer
Kyc aml interconnectedness

Iibf Exam Review : Bcsbi 2 Sept 2018

Kindly read BCSBI CODE OF COMMITMENTS TO CUSTOMER
AND MSE THROUGHLY
MOST OF THE QUESTIONS WERE ASKED FROM THESE TWO PARTS

1.COLLA FREE LOAN UPTO WHICH LIMIT IN MSE
2. FEE IN RESPECT OF DISTT LEVEL CASE
3. QUESTIONS RELATED TO CHQ DEPOSIT
4. CHQ COLLECTION
5. NI ACT
6.Ombudsman max limit

IIBF EXAM REVIEW : Cyber Crime 2 Sept 2018

Phishing
IP spoofing
Controls
Cyber Smearing Stalking
Cyber Crime
E Governence
E KYC
IT Act
IT AA
Locard Principle
Fraud Triangle
Zeus
Masquerading
Human Traits
Module 4 several questions
ISO IEC