Hand Book On Know Your Circular Andhra Bank Promotion

Hand Book
on
Dear Colleagues,
“Knowledge is a treasure, but practice is the Key to it “

You are aware that Apex College is publishing a monthly bulletin in the name of
“Know Your Circulars”, every month providing the gist of the circulars released
during the month.
For the benefit of all staff members and promotion aspirants, it is thought fit to bring
out a Hand Book by consolidating the gist of circulars released during the year 2017
in the name of “Hand Book on Know Your Circulars-2017”
I appreciate the efforts put forth by our LMS Team in bringing out this Hand Book at
appropriate time.
I sincerely advice all staff members to make better use of the Hand Book for
updating their knowledge and in performing the day to day activities in an efficient
manner.
(K.Uma Maheswara Rao)

DGM & Principal
Know Your Circulars - Jan 2017
Cir. No. 377 ref, 5/18 dt. 02.01.2017- Simplified OTS scheme – small loans up to Rs.1.00 lacs
What is the settlement formula for small loans up to Rs.1.00 lacs up to

31.03.2017
a. NPA from 01.04.2014 to 31.12.2015 - min. of 50% of Real account
balance
01 b. NPA on or before 31.03.2014 and TWO accounts - min. of 30% of real account
balance.
c. Both a & b are correct.
d. None of the above are correct.
Cir.no.380 ref.10/13 dt. 03.01.2017- obtention of PAN number /Form 60 in eligible transactions.
Which is correct in respect of obtention of PAN no. /form 60.
a. In the absence of PAN no., form 60 shall be collected in all eligible
02 transactions.
b. Form 60 is to be obtained transaction wise.
c. No debit transaction , transfer or otherwise be allowed where there is
neither PAN Nor Form 60.
d. All the above.
Cir.no.38/52/17 dt. 06.01.2017-Sanction of Additional Working Capital Limits to MSE
What the maximum quantum of finance provided under the scheme
a. 20% of existing sanctioned WC Limit.
03
b. 10% of the sanctioned limit
c. 25% of the limit
d. 20% of existing fund and non funded limits.
What is the purpose of Additional Working Capital limit of 20% of the limit.
a. For the purpose to meet the mismatch of cash flows arised out of
demonetization exercise and against specific request from the borrower.
04
b. For meeting the short term borrowings
c. For meeting the shortfall in Drawing Power
d. For additional working capital limit for increased activity.
Cir. No. 390 ref. 10/14 dt. 11.01.2017 - TDS in respect of payment of rents, professional
and Technical Services and other payments.
Which of the following returns are to be uploaded while remitting TDS.
a. Annexure I - salient provisions in respect of Tax deductions on
Various payments
05 b. Annexure II - Applicability, Certificate etc.
c. Annexure III – Interest and penalties
d. Annexure IV- Major instances of non-compliances
e. All the above.
Cir.no. 392 ref. 15/3 dt. 12.01.2017 - charges on Foregin Exchange transactions to be
charged manually (visit the circular for different charges/commission etc.)
36
What is the commission in respect of Export bills
purchased/negotiated/discounted for forwarding export documents on which no
collection commission or exchange accures to the Bank ( from one bank to other
06
bank in India)
a. Rs.2000/- per bill
b. Rs.1000/- per bill
c. Rs.1500/- per bill
d. Rs.500/- per bill
What are the charges to be collected for issue of Annual Export Turnover
Certificate.
07
a. Rs.500/- per certificate for each year
b. Rs.1000/- per year irrespective of no. of certificates
c. Rs.1500/- per year
d. nil
Cir. No.39 ref.52/18 dt. 13.01.2017 -PMMY –Guarantee cover through CGFMU of NCGTTC.
All PMMY loans sanctioned since are covered through the scheme
CGFMU by way of portfolio coverage.
a. 16.09.2016 ( date of agreement of the Bank with NCGTC)
08
b. 08.04.2015 – effective date of mudra loans
c. 01.04.2016 - current financial year
d. 01.01.2017 – being new year.
Under the scheme CGFMU - portfolio coverage mean:
a. Cumulative built up of quarterly outstanding balance of eligible Micro loans
sanction on or after the date lauch ie., 08.04.2015
09
b. All accounts under PMMY sanctioned after 01.04.2016 and slipped to NPA
are not covered.
c. The amount in default over and above 5% will be settled by the fund to
the extent of 50% on prorate basis subjet to receipt of an auditor’
certificate confirming eligible claim amount.
d. All are correct.
Cir. No. 395 ref. 19/38 dt. 18.01.2017 -Interest subvention scheme for Short term crop
loans -grant of grace period of 60 days beyond due date.
What is the subvention and additional interest subvention available on Crop loan
borrowers as per the above scheme for 2015-16 and 2016-17.
10
a. 2% and 3%(for prompt repayment )
b. 7% in total
c. 3% and 3% (for prompt repayment)
d. Nil
What is the grace period allowed for prompt payment incentive for crop
loans falling due between 01.11.2016 to 31.12.2016.
11
a. 30 days b.60 days c.15 days d.45 days
Cir. No. 398 ref. 65/11 dt. 19.01.2017 -Amendment to RBI Master direction on KYC.
37
What is Non Profit organization as per the RBI master direction?
a. Any entity or organization that is registered as a Trust or a Society
under the Societies Registration Act, 1860 or any similar State
legislation or a Company registered under Section 8 of the Companies
Act, 2013.
b. Any entity or organization that is registered as a Trust or a Society
12 legislation or a Company registered under Section 25 of the Companies
Act, 2013
c. Any entity or organization that is registered as a Trust or a Society
legislation or a Company registered under Section 15 of the Companies
Act, 2013
d. Any entity or organization that is registered as a Trust or a Society
legislation or a Company registered under Section 8 of the
Companies Act, 2016
What are the parameters to be considered for risk categorization of the

customers?
13 a. Customers identity, social/financial status
b. Nature of business/activity
c. Information about the clients business and their location etc.
d. All the above.
Cir. No. 400 ref. 27/48 dt. 19.01.2017 – AB Subh Yatra - RD scheme.
Under this scheme, what is the amount of instalment?
A. Depends on the cost of the plan chosen by customer. Total cost of
14 holiday plan will be divided in to 13 installments to form the monthly
RD installment value.
B. As per customers request.
C. No link to holiday plan.
D. None of the above.
Under this scheme, Bank has entered in to agreement with for
vocational packages both for domestic and international.
15 a. Tourism development corporation – state wise
b. Thomas Cook India Limited
c. Mahindra holiday
d. Make your trip.com
Cir. No. 03 ref. 3/7 dt. 23.01.2017 - Internal Ombudsman.
Who is internal ombudsman of the Bank
a. Mr. P. Raja Reddy
16
b. General Manager –HR of the Bank
c. Mr. Hanumanthu Sanyasi
d. The Executive Director -HR
Cir. No. 05 ref. 66/01 dt. 23.01.2017-GOI scheme - Pradhan Mantri Garib Kalyan Deposit
Scheme 2016.
38
Which is not correct under the above scheme?
a. Any person who declared undisclosed income under sub section
(1) of section 199C of Taxation and investment reginme for
17
PMGKY 2016 is eligible.
b. The scheme will be operational from 17.12.2016 to 31.03.2017.
c. The deposits will be held at the Credit of declarant in Bonds ledger
account with RBI.
d. A certificate of holding will be given to the declarant.
e. None of the above.
Cir. No. 411 ref. 65/13 dt. 31.01.2017- registration of KYC data.
What is the cut off date from which, the data on KCY of individual accounts to be
up loaded with Central KYC records registry.
18 a. 01.04.2017
b. 01.02.2017
c. 01.01.2017
d. 01.04.2018
What important documents ( certified photo copies ) pertaining to the individual accounts
opend on or after 01.01.2017 shall be submitted to Zonal Offices.
19 a. Application ( for the purpose of scanning of signatures)
b. Photograph of the applicants
c. KYC documents
d. All the above.
Cir. No. 412 REF. 53/3 DT. 31.01.2017 - AP State Kapu Welfare and Development
Corporation Limited – Els to weak Kapu students for abroad studies.
What is the financial assistance to the weak Kapu youth in the state of AP for
MBBS, Post Graduate or Ph.D courses.
a. Rs.10.00 lacs
20.
b. Rs.15.00 lacs
c. Rs.10.00 lacs
d. Rs.5.00 lacs.
Deevana Scheme 2016-17 is intended by the State of AP for the students of
for tution fee and living expenses for overseas study.
21 a. Weak Kapu students
b. Weakersection in SC/ST
c. Physically disabled
d. None of the above.
Cir.no. 413/ 55/0 dt. 31.01.2017 -Activation of Inoperative accounts as operative a/cs
An In operative account is that
a. Which are not operated by customer over a period of 6 months
b. SB and CA group of accounts which are not operated by the customer over a
22
period of TWO years.
c. SB and CA group of accounts which are not operated by the customer over a
period of One year.
d. No operation for 12 months in SB group and 6 months in Current Account
group.
39
KEY-Jan-2017
1. C 6. B 11 B 16 C 21 A
2. D 7. A 12 A 17 E 22 B
3. A 8 B 13 D 18 C
4. A 9 D 14 A 19 D
5. E 10 A 15 B 20 A
Know Your Circulars - Feb 2017
Cir. No. 415 Ref. 53/35 dt. 01.02.2017 - Issues pertaining to ELs.
For the applications received through Vidya Lakshmi Portal and sanctioned by the
Branches, an amount of + Applicable Service Tax is to be
debited to the loan account as National Securities Depository Limited Service
01 Charges.
a. Rs.100/-
b. Rs,250/-
c. Nil
d. Rs.1000/-
What are the different subsidy schemes for Economically backward students:
a. Central Sector interest subsidy scheme for studies in India
b. Padho Pardesh Scheme for interest subsidy on Education loans for overseas
02
Studies, ie., Masters, M.Phil & Pd.D for the students belonging to the minority
communities
c. Dr. Ambedkar scheme for interest subsidy on Education loans for overseas
studies, ie., Masters, M.Phil & Ph.d for the students belonging to OBC and EBC
categories.
d. All the above.
Cir. No. 417 ref. 53/36 dt. 02.02.2017 Reappraisal of Gold loans ( both Agl & Non-Agl.)
What is the amount of reappraisal charges in respect of Non Agrl. Gold loans
after the due date:
a. At 0.15% of the loan amount outstanding subject to a maximum of
Rs.250/- per account shall be paid to the appraiser by debiting the
03 Loan account.
b. At 0.15% of the loan amount outstanding subject to a maximum of
Rs.250/- per account shall be paid to the appraiser by debiting the
P&L account
c. At 0.25% subject to a maximum of Rs.500/- to be debited to P&L
account.
d. At 0.25% subject to a maximum of Rs.500/- to be debited to loan
account
40
What are the reappraisal charges in respect of Agrl. Gold loans?
a. At 0.15% of the outstanding loan amount subject to the maximum of Rs.250/-
04 per account to be debited to P&L account and to be paid to the appraiser for loans
before the due date.
Cir. No. 419 ref. 28/01 dt. 03.02.2017 - Financing to SCs - MOU
National Scheduled Caste Finance & Development Corporation provides refinance in
respect of loans allowed to SCs living below DPL (double poverty line) DPL is
a. Annual family income of Rs.98,000/- in rural areas and
Rs.1,20,000/- in urban areas.
05
b. Annual family income of Rs.50,000/- in rural areas and
c. Annual family income of Rs.100,000/- in rural areas and
What is the quantum of assistance in the above scheme
a. 90% of the project Cost
06
b. 75% of the project cost
c. 50% of the project cost
d. 75% of the project cost
What is the maximum project cost permitted for availing refinance from NSFDC
a. Rs.20.00 lacs
07
b. Rs.30.00 lacs
c. Rs.25.00 lac
d. No such maximum ceiling
Cir. No. 424 ref. 52/15 dt. 07.02.2015 - AB e-trade 3 in one account
What are two different platforms available with whom the Bank has entered in to an
agreement of providing on line trading facility.
08
a. M/s. Religare Securities Ltd.
b. M/s.Geojit BNP Paribas Financial Services Ltd.
c. Both a &b
Cir.No.425/19/39 dt. 10.02.2017-Rate of interest ot Cashew Industry as Agro based Ind

Interest rates on Cashew Industry is on par with
a.
On commercial rate
09
b.
Rice Mill
c.
Oil extraction units
d.
Sponge and iron industry
Cir.No. 426 ref. 52/19 dt. 10.02.2017 - CGS Recovery by MLIs after
settlement of CGTMSE Claim.
41
In respect of CGTMSE claim settled accounts, what is the portion of recoveries to be
sent to the Trust in case of recoveries made subsequent to claim settlement.
a.50%
10 b.25%
c.100%
d. Need not send to CGTMSE but Branch can credit the entire recoveries to
P&L account.
Cir. No. 427 ref. 52/20 dt. 10.02.2017 - Modification in the Credit Guarantee
Scheme (CGS) of CGTMSE
Which among the following is eligible credit facility under the Scheme
CGTMSE
a. Credit facilities extended by MLIs to a single eligible borrower in Micro
11
and Small Enterprise sector not exceeding Rs.200.00 lacs by way of
Term loan and /or Working capital facilities without any collateral
security and /or third party guarantee.
b. Credit facilities both funded and non funded up to Rs.100.00 lacs
c. Credit limits (funded ) not exceeding Rs.100.00 lacs
What is the maximum interest rate to the loan account to become
eligible for cover under CGTMSE
12 a. MCLR+2.00%
b. Not more than 14% p.a. ( Including the cost of guarantee cover )
would be eligible for coverage under CGS.
c. No such ceiling on interest rate.
What is the guarantee cover for Women Entreprenuers up to Rs. 50.00 lacs.
a.5% of the amount in default with a maximum of Rs.40.00 lacs.
13
80% of the amount in default with a maximum of Rs.40.00 lacs
b.
75% of the loan amount
c.
75% of the loan amount with a maximum of Rs.37.50 lacs.
d.
What is the Guarantee cover available in respect of loans above Rs.50.00 lacs and up to
Rs.200.00 lacs.
14
a. 50% of the amount in default subject to a max. of Rs.100.00 lacs
b. 75% of the amount in default subject to a max. of Rs. 150.00 lacs
c. 50% of the loan amount
d. 75% of the loan amount
Cir. No. 428 ref. 52/21 dt. 13.02.2017 - Financing to MSEs - inclusion of 30% of
Digital portion of projected turnover in assessment under Turnover method.
In respect of MSE units what is the % of turnover that is considered as WC requirement
for limits up to Rs.6.00 cr. under non digital mode.
15
a.25% of projected turnover b.33%
of the projected turnover
c. 25% of Actual turnover
42
What is the margin to be considered under Digital transactions under turnover method up
to Rs.6.00 cr. to MSEs.
16 a.
10% of projected digital turnover.
b.
15% of the projected digital turnover
c.
25% of the projected turnover
d.
18% of the projected digital turnover.
Cir. No. 429 ref.65/14 dt. 13.02.2017 - KYC-AML
What is the periodicity for updation of KYC details?
a. Once in Two Years for High risk customers
17
b. Once in eight years for medium risk customers
c. Once in Ten years for Low risk customers
d. All the above are correct.
Periodic review of risk categorization of accounts shall be done
a. Once in Six Months and high risk accounts are subjected to more
18 intensified monitoring.
b. Once in a year
c. Once in Two years
d. No periodic review is required.
Cir. No. 430/ 55/3 dt. 15.02.2017Company seal as requirement for opening an account.
Which of the following is not required for opening an account for Company as per
Section 9 of Companies (Amendment ) Act, 2015.
a. Certificate of incorporation
19
b. Memorandum and Articles of Association
c. A resolution from the Board of directors and POA granted to its
managers, officers, employees to transact on its behalf and
d. An Officially valid document in respect of managers, officers or
employees holding an attorney to transact on its behalf.
e. Common seal requirement
Cir. No. 431 ref. 53/37 dt. 15.02.2017 - revision of appraising charges
What are the Appraising charges for Non Agrl Gold Loans up to Rs.2.00 lacs
20 a. Rs.500/- per account irrespective of the limit

b. 1% of the limit per annum payable by the borrower.
c. Rs.50/- per gram of the gold obtained as security
What are the appraising charges for Agrl. Gold Loans up to Rs.2.00 lacs
a.
Rs.500/- per account irrespective of the limit
21
b.
1% of the limit per annum payable by the borrower.
c.
Rs.50/- per gram of the gold obtained as security
d.
None of the above.
What are the appraising charges under AB Supreme ( 6 months tenor)
a. 0.50% of the limit irrespective of the limit
22
b. 1.00% of the limit irrespective of the limit
c. 2.00% on the gold value pledged
d. 1.00% on the gold value pledged.
Cir. No. 432 ref. 53/38 dt. 15.02.2017 - Education Loans to ISB students
43
Which of the following is not correct in respect of ELs to ISB students.
a. Need based subject to maximum of Rs.30.00 lacs or 95% of the
23 course cost, whichever is lower.
b. Margin 5%
c. Maximum repayment is 10 years
d. Collateral security at 50% mandatory.
Cir. No. 433 ref. 3/39 dt. 16.02.2017 - APBCWD - MOU for ELs
What is the scheme under which the Bank has entered in to MOU with AP
Govt. for sanction of EL to BC students.
24 a. NTR Videshi Vidyadarana Scheme for BC students to pursue Post
Graduate studies abroad.
b. Vidya lakshmi schme
c. NTR –BC vidya parishad
Cir. No. 42 ref. 51/7 dt. 21.02.2017 Launch of New General Insurance
Products – Tie up with Reliance General Insurance Company Ltd.
What loan products are covered under the tie up with Relience General
Insurance Company Ltd.
25
a. Housing Loan
b. Auto Loan/Personal loan protect
c. Both A & B
Cir.no. 444 ref. 65/15 dt. 22.02.2017 - KYC compliance
Which is not correct in respect of small account:
a. The aggregate credit not more than rupees one laksh in a year
b. The aggregate withdrawals not more than Rs. Ten thousand in a month
26 c. The balance in the accounts not more than Rs. Fifty thousand at any
point in time.
d. The accounts are normally for a period of 12 months .
e. None of the above are correct.
Which among the following is not correct in respect of KYC norms
a. KYC verification of all members of SHGs is not required while
opening the SB account of SHG .
27
b. If proof of address under goes a change, fresh proof address may be
submitted to the branch within a period of six months
c. OVD with the current address is not necessary if the customer submits
an OVD with permanent address.
Cir. No. 447 ref. 52/22 dt. 27.02.2017 - Credit guarantee scheme for Stand Up
India (CGSSI) through NCGTC.
44
As per the agreement between NCGTC and our Bank to cover Stand up
India loans, which of the following is correct?
a. The scheme is known as Credit Guarantee Fund for Stand Up India (
28
cgssi)
b. All Stand Up India loans sanctioned on or after 25.04.2016 are eligible
for coverage under the CGSSI scheme
c. The cover is available for credit facilities of over Rs.10.00 lacs and up
to Rs.100.00 lacs without any collateral security and/or third party
guarantee
d. All the above.
What is the cover available for limits from Rs.10.00 lacs to Rs.50.00 lacs.
a. 80% of the amount of default subject to a maximum of
29 Rs.40.00 lacs.
b. 75% of the amount of loan amount outstanding
c. 80% of the sanctioned limit
d. 60% of the sanctioned limit.
What is the cover available for limit above Rs.50.00 lacs and up to Rs.100.00 lacs.
a. Rs.40.00 lacs plus 50% of the amount in default above Rs.50.00 lacs
subject to overall ceiling of Rs/65.00 lacs of the amount in default.
30
b. 80% of the amount in default
c. 75% of the loan amount
Cir. No. 448 ref. 26/32 dt. 27.02.2017 - RBS audit 2016.
What is the applicable ceiling on limit for Half Yearly review.
a.
All fund and non fund based limits of Rs.100.00 lacs and above.
31
b.
All fund and non funded limit of Rs.500.00 lacs and above
c.
All loans of Rs.50.00 lacs and above
d.
Applicable for limits of Rs.100.00 crore and above.
Cir.no. 449 ref. 53/40 dt.27.02.2017 - Pradhan Mantri Awas Yojana – CLSS
Which is not correct in respect of subsidy eligibility under PMAY?
a. Housing loans up to Rs.6.00 lacs
32
b. Interest subsidy at 6.50%p.a
c. Available for a period of 15 yrs or tenure of loan whichever is less.
KEY –February-2017
1. B 6. A 11 A 16 A 21 B 26 E 31 A
2. D 7. B 12 B 17 D 22 A 27 D 32 D
3. A 8 C 13 B 18 A 23 D 28 D
4. A 9 B 14 A 19 E 24 A 29 A
5. A 10 C 15 B 20 B 25 C 30 A
45
Know Your Circulars - Mar 2017
Cir. No. 452 ref. 19/40 dt. 01.03.2017 - KCC revised guidelines.
Which of the following categories of borrowers are eligible for short term
credit under Kisan Credit Card Scheme which is valid for 5 years.
a. All Farmers, Individuals/Joint borrowers who are owner cultivators
01
b. Tenant farmers, Oral lessees and sharecroppers
c. RMG or Joint Liability groups of farmers including tenant farmers and share
croppers.
d. All the above.
As per the revised guidelines for renewal of KCC, which of the following is correct in the
absence of digitalized and updated information in Bhoomi portal and Revenue
department not issuing manual Adangals/Pahani:
02 a. RDO/Appraising Officer shall ascertain the extent of Land cultivated & crops grown
by the borrower by making discrete inquiries with the village elders.
b. Verification of the recommendations of the RDO/ appraising officer to be
done by the Branch Manager.
c. Other parameters like scale of finance, Crop Insurance etc. are to be
followed.
d. All the above to be looked into for renewing/ reviewing the limits.
In respect of deceased borrower of KCC which is not correct.
a. The legal heirs of the family members have to first repay the outstanding loan of
the deceased borrower and obtain the passbook/title deed from the Branch and
change the ownership of land in the name of legal heirs and then sanction the
loan.
03 b. Branch has to identify the legal heir who is cultivating the land of deceased
borrower and sanction crop loan in favour of the legal heir after closure of the
existing loan in the name of deceased borrower, even though the pattadar pass
book/adangal/pahani etc. is not in the name of the legal heir.
c. Branch has to obtain an undertaking from the legal heir to get his name in the
revenue records at the earliest.
d. Branch to obtain an affidavit /No objection certificate from the other legal heirs.
In respect of the borrower who migrated to various other places in the country or to
other countries for their lively hood, which is not correct in respect of renewal / revival of
the loan
04 a. Borrower himself has to sign the documents for renewal / revival of crop loan.
b. Existing crop loans can be renewed in the name of spouse/other family member
who is residing in the village and cultivating the migrated borrower land.
c. Branch has to obtain an authorization from migrated borrower before sanction of
loan to spouse/other family members.
d. Branch to obtain fresh documents from spouse/other family member at the time
of renewal.
e. Branch to obtain a confirmation certificate from the migrated borrower about his
authorization after his return from migration.
46
Cir No. 453 ref. 52/23 dt. 02.03.2017 - Revision of Guidelines – loan policy
What the amount of Stand by Term Loan that can be considered for all MSME borrowers
irrespective of credit rating.
05 a. To the extent of 35% of fund based limits ( Term Loan & Working Capital ).
b. To the extent of 20% of fund based limits ( TL +WC) subject to the cap of
Rs.100.00 lacs.
c. Maximum up to Rs.25.00 lacs
d. Min. Rs.10.00 lacs and max. up to Rs.25.00 lacs.
Which of the following is not correct in respect of Stand by Term Loan
a. The loan is intended for acquiring additional machinery like Lathe
06. machines, generator, balancing equipment, vechicles etc.
b. Margin on the assets is 25%
c. Immediate disbursal of funds as the Stand by Term loan is considered along
with the regular sanction.
d. Only MSE borrowers are eligible.
What is the purpose for which additional working capital limit to MSE
borrower.
a. To meet the temporary rise in working capital requirements arising mainly due to
07
unforeseen/seasonal increase in demand for products procured by them.
b. To meet the expansion works
c. To meet the sticky debtors
Cir.No. 459 ref. 53/42 dt. 07.03.2017 - Education Loans - Asset classification of
restructured Education Loan account.
How much of higher provision to required to be kept during additional
moratorium period and one year thereafter in respect of Restructured
Education loans?
08
a.15%
b.5%
c.20%
d.40%
Which of the following conditions is permitted for treating the extension of
repayment period as “ Not a Restructure “
09. a. Extension of repayment in three spells of moratorium

b. Each spell is not exceeding six months.
c. Extension is on account of unemployment/underemployment.
d. All the above.
Cir. No. 461 ref. 48/2 dt. 08.03.2017 - RBS - Inspection by RBI.
47
What is the cut off exposure for getting the external rating.
a. Rs.5.00 cr and above.
10
b. Rs. 10.00 cr and above
c. Rs.1.00 cr and above
d. All accounts irrespective of limit.
What is the risk weight on unrated exposures of Rs/200.00 cr and above from
30.06.2017
11
a. 100%
b. 150%
c. 120%
d. 75%
What is the validity period of external ratings
a. 2 years
12
b. 5 years with annual review
c. 15 months
d. Yearly
Cir. No. 465 ref. 55/45 dt. 13.03.2017 -Collection of cheques at Non home branches.
In respect of collection of cheques for non home branches, Which is not relevant
a. Branch to apply due diligence
13 b. Branch to follow KYC norms
c. Pass book to be accompanied
d. Acknowledgement to be provided to the customer on request.
Cir. No. 468 /53/43 dt. 14.03.2017 -Retail loans switchover from Base rate to MCLR.
What is the service charge for shifting to MCLR in respect of retail loans.
a. 1.00% of outstanding balance as on date of switchover ( plus applicable
14
service charges ) with minimum of Rs.5000/-
b. 1.00% of loan sanctioned
c. 1.00% of outstanding
Cir. No. 472 ref. 19/41 dt. 16.03.2017 - APY - value added facilities .
Which of the following are the value added services to the subscribers of APY
a. Option for generation of e PRAN card
15
b. Option for Online account viewing facility for APY subscribers.
c. Option for fund transfer free of cost
d. Option for linking to loan accounts for automatic recovery process.
e. Both A & B
Cir.No.481/19/42 dt. 23.03.2017-Interest subvention for short term production credit.
What is the limit up to which interest subvention is available in PAGCC, KCC and AGL
with subvention.
16
a. Aggregate credit limit of Rs.3.00 lacs
b. Aggregate credit limit up to Rs.2.50 lacs
c. Loans sanctioned prior to 31.03.2012
Cir.No.486 ref. 52/26 dt. 28.03.2017 - PMMY - Updation of data
48
The cut off dates under PMMY sanctioned from and slipped to
NPA are not covered under CGFMU of NCGTC.
17
a. 15.04.2015
b. 01.04.2016
c. 01.01.2017
d. 01.04.2017
Cir.no. 487 ref. 19/44 dt. 28.03.2017 - Subsidy scheme of NABARD
Which of the following schemes of NABARD subsidy that are discountinued
by 15.03.2017.
a. Scheme for water pumping system
18
b. Scheme for Lighting system
c. Scheme for godown facilities
d. Scheme let terrace farming.
e. A&B
f. B& C
g. C&D
Cir.No. 488 ref. 27/53 dt. 28.03.2017 - Kick start plan 2017-18
Objectives of kick start
a. Opening of Quality CASA Accounts
19 b. Credit growth under RAM disbursements
c. Recovery of NPA ( Recovery/upgradation/OTS)
d. Prevention of slippages –
e. Sale of 3rd party products
f. All the above.
Cir. No. 490 ref. 53/45 dt. 30.03.2017 - PMAY - modification of guidelines.
Under PMAY – Urban - what is the period up to which the interest subsidy is
available at 6.50% pa. for EWS and LIG borrowers .
20
a. Upto 20 years
b. Up to 20 years or during the tenure of the loan whichever is low
c. Up to 15 years or during the tenure of the loan whichever is low
d. Up to 15 years
Which is correct in respect of Processing charges under PMAY
a. PLI ( primary lending institute ) will give a lump sum amount of Rs.3000/- per
sanctioned application.
21
b. No processing charges from beneficiaries of housing loan up to Rs.6.00
lacs.
c. For limits above Rs.6.00 lacs , normal processing charges will be collected.
d. All the above are correct.
Cir. No. 491 ref. 53/46 dt. 30.03.2017 - PMAY –MIG
What is the maximum loan amount that can be sanctioned to MIG 2 category.
a. Rs.9.00 lacs
22
b. Rs.12.00 lacs
c. Rs.10.00 lacs
d. Rs.6.00 lacs.
49
What is the interest subsidy available under MIG 1 under PMAY?
a. 4.00%
23
b. 3.00%
c. 2.00%
d. 1.00%
What is the lumpsum amount paid per sanctioned HL application in lieu of
processing fee?
a.1500/-
24 b. 2000/-
c.3000/-
d. Normal processing charges
Cir.No.494/15/21dt.31.03.2017-Trade Easy software for Foreign–Exch.Products
Trade easy – the software offers general guidelines on various aspects of forex
transactions covering which of the following?
a. NR deposits
b. Forex dealings
25
c. Risk Management
d. Exports/Imports
e. ECGC and its serves
f. ECBs
g. R-Return
h. All the above.
Cir.NO. 495 ref. 45/21 dt. 31.03.2017 - OTS schemes- modifications
Which of the following accounts are not eligible for OTS up to Rs.1.00 lacs
a. Sub standard accounts
26 b. Fully secured by gold/deposit/other liquid securities
c. Loans sanctioned on the basis of salary undertaking letters
d. Accounts classified as “Fraud by FRMG, HO”.
e. All the above
Cir.no.467 ref. 65/16 dt. 14.03.2017
Which of the following is to be submitted by the customer for Current
address, if the same is different from the address recorded in OVD.
27 a. A Declaration from the customer indicating the address to which all
correspondence shall be made.
b. A notarized affidavit on current address.
c. A letter from Two neighbours of the Current address
Updation of KYC data with CKYC Registry is required in respect of individual accounts
opened on or after January 1, 2017.
28 a. As per Company’s act
b. As per Prevention of Money Laundering ( Maintenance of Records ) Rules, 2005.
c. As per BR Act.
d. As per CERSAI ACT.
50
What are key elements of KYC policy?
a.Customer Acceptance policy
29
b.Customer Identification procedure
c.Monitoring of transactions
d.Risk management
e.All the above.
What is the ceiling on withdrawal for a small account?
a.Rs.50,000/- in a month
30
b.Rs.1,00,000/- in a year
c.Rs.10,000/- in a month
d.No ceiling on withdrawal.
What are the documents required for a partnership firm for customer
identification:
31
a. Registration certificate
b. Partnership deed
c. OVD in respect of person holding an attorney to transact on its behalf.
d. All the above.
What is periodicity of updation of KYC in respect of high risk customers
a.2 years
32
b.8 years
c.10 years
d.1 year
In respect of SHGs, KYC compliance is required for
a.
Office bearers
33
b.
All members
c.
50% of members
d.
25% of members
The suspicious transaction reports should be furnished within days,
of arriving a conclusion that any transaction, whether cash or non cahs or a series of
transactions integrally connected are of suspicious nature.
34
a. Within One month
b. Within Seven days
c. Within Ten days
d. immediately
The Cash Transaction report for each month should be submitted to FIU-IND
by of the succeeding month.
35
a. By 15th of succeeding month
b. By 10th of succeeding month
c. Before closure of the next quarter
d. Before the financial year closure.
KEY-March-2017
1. D 6. D 11 B 16 A 21 D 26 E 31 D
2. D 7. A 12 C 17 B 22 B 27 A 32 A
3. A 8 B 13 C 18 E 23 A 28 B 33 A
51
4. A 9 D 14 A 19 F 24 C 29 E 34 B
5. B 10 A 15 E 20 B 25 H 30 C 35 A
Know Your Circulars - Apr 2017
Circular No.02 dated 01-04-2017
Processing Charges to be paid to Housing Loan Counselors at ---% subject to a

01
maximum of Rs.10000 is to be paid by debit to ---- up to 30-06-2017
A 0.50% Applicant’s/Borrower’s Savings/Loan account.
B 0.25% Applicant’s/Borrower’s Savings/Loan account.
C 0.50% Shall be paid by debit to Branch P & L account
D 0.25% Shall be paid by debit to Branch P & L account
Processing Charges to be collected from the Customers in respect of Car Loan
02
Applicants up to 30-06-2017 are---
A 1% of the limit sanctioned Minimum Rs.1000 + ST and Maximum Rs.25000 +ST
Nil. Where proposals are mobilized from car dealers 1% of the limit subject to a
B
maximum of Rs.25000 to be collected from Applicants
1.5% of the limit sanctioned Minimum Rs.1000 + ST and Maximum Rs.25000+ST
C
D 1% of the limit sanctioned Minimum Rs.1000 + ST and Maximum Rs.5000 +ST

Circular No.03 dated 01-04-2017 (Kisan Kalpataru)
03 Kisan Kalpataru aims at

Providing a comprehensive credit limit to meet all the credit requirements of
A
Farmers
Providing Hassle Free Term Loan Limit for various farm activities undertaken by
B
Farmers
Addressing the production credit requirements of farmers in a comprehensive
C
Manner
Addressing the production credit and Term Loan requirements of farmers in a
D
comprehensive manner
Individual, Joint/Group of farmers- Owner cultivators‟ engaged in Agriculture and
04 related activities, to be eligible to avail loan under “Kisan Kalpataru” scheme,
should have a minimum --- of satisfactory dealings with the Bank/Branch.
A 3 years
B 7 Years
C 5 Years
D 2 Years
05 Maximum Repayment period under “Kisan Kalpataru” Scheme is ----
52
A 3 years
B 7 Years
C 5 Years
D 9 Years
06 Under “Kisan Kalpataru” Scheme, the Quantum of Loan/Ceiling limit is ---
Based on the investment plan given by the farmer to be undertaken in the next 3
A
to 5 years subject to approval of Bank as per extant guidelines.
B
C
D
07 Collateral Security to be obtained in respect of “Kisan Kalapataru” scheme is --
Up to Rs.1.50 lakhs – Nil
A
Above Rs.1.50 lakhs is – Minimum of 75% of aggregate agricultural Credit Limits enjoyed by
Borrower.
Up to Rs.1.50 lakhs – Nil
B Above Rs.1.50 lakhs is – Minimum of 50% of aggregate agricultural Credit Limits enjoyed by
Borrower.
Up to Rs.1.50 lakhs – Minimum of 50% of aggregate agricultural Credit Limits enjoyed by
Borrower.
C
Above Rs.1.50 lakhs is – Minimum of 75% of aggregate agricultural Credit Limits
enjoyed by Borrower.
Up to Rs.1.50 lakhs – Min. of 50% of aggregate agricultural Credit Limits enjoyed by Borrower.
D
Above Rs.1.50 lakhs is – Minimum of 100% of aggregate agricultural Credit
Limits enjoyed by Borrower.
Circular No.06 dated 06-04-2017
While establishing an account based relationship with a regulated entity, is

08
quoting/mentioning of Sur Name/Last Name mandatory?
A Yes
B No
Circular No. 08 dated 10-04-2017
Bank should implement review of Risk categorisation of customers at a

09
periodicity of not less than ------ and conduct enhanced due diligence measures.
A 3 Months
53
B 9 Months
C 6 Months
D 12 Months
10 The extent of monitoring will depend on -------
A The number of transactions in the account
B The amount of transactions in the accounts
C The Risk Category of the account
D The Net worth of the Customer
Enhanced due diligence can be conducted by obtaining the latest information like
10
Monthly Income, Sources of Income, Present residential address, Duration of
A
Stay at present address and other relevant information of the customer.
B The number and extent of transactions in the account
C Occupation and Income particulars of the account holder
Duration of Stay at present address and other relevant information of the customer
D
12 The threshold Limits are being assigned by the system depending on ----
A Income level of the customer
B Occupation of the Customer
C Risk Category of the customer
D Duration of Stay at present address
13 A flag/Tab by name “Risk Review Date” is provided in the system in ---
A “UCSMIS”
B “CUSMIS”
C “SUCMIS”
D “SUCSMIS”
Circular No.14 dated 11-04-2017 – Filing of Suits in NPA Accounts
Branches should get suits filed in all accounts within ---- of the account
becoming NPA even though the SARFAESI action is initiated and by initiating
14
SARFAESI action , it will not extend limitation for filing of suits. As such suits
are to be filed within the limitation period both on Borrower(s) and guarantors.
A 12 Months
54
B 6 months
C 3 Months
D 36 Months
Circular No.10dated 11-04-2017–RecoveryAgents– Commission/Remuneration Payable.
The Amount of commission payable (as percentage) to Recovery Agent for NPA
15 age of above 5 years, with liability up to Rs.5,00,000 is ----- subject to a
Maximum of Rs.10 lakhs per account.
A 07.50%
B 10.00%
C 11.00%
D 12.50%
Circular No.05 dated 06-04-2017 Payment of Central Pensions - TDS
From April 2917 onwards, the TDS to be applied for senior Citizens (60 -80
16
years) if the annual pension is above Rs.5,00,000 & up to Rs.10,00,000 is ---
A 5%
B 10%
C 15%
D 20%
Circular No. 25 dated 25-04-2017 Charges on Foreign Exchange Transactions
Charges for Export Bills sent under collection up to USD 10,000 or equivalent is
17
Rs.------- and above USD10,00,000 or equivalent is Rs.----
A 15000 & 25000
B 10000 & 20000
C 15000 & 20000
D 10000 & 15000
KEY –April-2017
1. C 6. C 11 A 16 D
2. B 7. A 12 C 17 A
3. B 8 B 13 B
4. C 9 C 14 B
5. D 10 C 15 D
55
Know Your Circulars - May 2017
Cir.no.35/11/02dt.05.05.2017 -Empanelment of new Service Provider for e –

auction services.
Who is the service provider empanelled for conducting E- auction Services
a. M/s. Pyga Services pvt.Ltd.
01 b. M/s. Antares Systems Limited
c. M/s. e – Procuerement Technologies Ltd.
d. M/s. C1 India Pvt Ltd.
What are the different services that are provided by M/s. Antares Systmes Limited.
a. Conducting sale of Secured Assets under SARFAESI Act & RDDB Act
02 through E-auctions.
b. Arranging a platform for compromises
c. Arranging recovery agents.
Cir.no. 40 ref. 49/2 d t. 09.05.2017 - safe deposit lockers at Branches -
concession on annual rent.
What is the special discount on locker rent allotted during the said period.
a. 25% on locker rent as discount
03 b. 15% on locker rent as discount
c. 10% on one year rent as discount
d. 10% continuously.
Cir. No. 41 Ref. 49/3 dt. 11.05.2017 - Aadhaar Seeding in Multiple Bank accounts
The modified format for seeding Aadhaar for getting consent from Customer for
Aadhaar seeding can be used for
a. All new accounts to be opened
04 b. In all existing accounts
c. For seeding mobile number
d. For seeding e –mail ID
e. All the above.
Cir.no. 43 ref. 48/01 dt. 12.05.2017 - Customization of menu for entering

internal ratings of borrowers in CBS.
What is the menu option for entering the internal ratings to have centralized data
on ratings.
05 a. HCCRT
b. HCUMM
c. HTTM
d. HCI
Cir.no. 44 ref. 48/02 dt. 12.05.2017 - Customization of CRS AND CRAS in LAPS
The applicability of CRS rating model in laps is applicable for credit limits :
a. Fund/Non fund based limit from Rs. 5.00 lacs and less than Rs.50.00
06 lacs
b. Fund based limits from Rs.52.00 lacs up to Rs.50.00 lacs
c. Fund/Non fund based limit from Rs. 5.00 lacs and less than Rs.100.00
lacs
56
d. Fund based limits from Rs.5.00 lacs to Rs.100.00 lacs.
The applicability of CRAS model under LAPS is
a. Fund /Non Fund based limits of Rs.100.00 lacs and less than Rs.5.00
cr.
07 b. Fund/Non Fund based limits of Rs.50.00 lacs and above up to Rs.5.00
cr.
c. Fund /non Fund based limits of Rs.100.00 lacs and upto Rs.5.00 cr
inclusive
d. Only fund based advances from Rs.50.00 lacs to Rs.5.00 cr.
Cir. No. 45 ref. 65/02 dt. 15.05.2017,Implementation of KYC/AML/CFT guidelines.
Which of the following practices is not as per KYC norms.

a. Branch shall obtain KYC documents, conduct proper due diligence and shall
be signed by the interviewing officers and authorized person before opening
of the account.
08 b. Every customer should be placed either in High, Medium or Low risk
category basing on customer’s identity, Social/financial
c. Branch should verify the self attested photo copies of KYC documents
submitted by the customer with originals and Bank Official should sign all
copies as verified.
Branch shall inform all the suspicious transactions to KYC-AML Cell by e mail
within
09 a. 7 working days
b. Immediately
c. Within a couple of days
d. On the same day.
What is the periodicity of KYC updation of the customer who is high risk category
a. Once in Two years
10 b. Once in Five years
c. Annually once
What is the periodicity of KYC updation of the customer who is medium, risk
category
11 a. Once in Five years
b. At the time of shifting of residence
c. Once in eight years
d. Once in Ten years
What is the periodicity of KYC updation of the customer who is Low risk category
a. Once in Five years
12 b. Once in Ten Years
c. Once in eight years
d. Once in Twenty years
Cir No. 49 ref. 34/2 dt. 23.05.2017 - Survey of Bank Branches 2016-17 – Rating
of Banks on Code compliance.
What is the score awarded by BCSBI to our Bank

13 a. Average rating with score of 64
b. Good scoring with 82 score
c. Poor with scoring of 51
57
d. None of the above
Cir 51 ref. 53/02 dt. 26.05.2017 - Retail loans switchover from Base rate to MCLR
What is the service charge applicable for switchover of retail loans from Base
Rate to MCLR.
a. 1% of the outstanding balance
14 b. 2%of the outstanding balance
c. 1% of outstanding balance as on date of switch over with a minimum
of Rs.5000/-
d. Rs.5000/- irrespective of the loan account balance.
Which of the following loans are exempted from service charges on switchover
from Base rate to MCLR.
a. All Staff ( including retired/VRS) AVAILED LOANS UNDER GENERAL
15 PUBLIC CATEGORY
b. Education Loans sanctioned to staff children
c. Both A & B
Cir.no.54/15/03dt. 31.05.2017- Revision of interest rates on FNR (B)/RFC
What is the rate of additional interest that can be provided on Deposits of NON
Residents.
16 a. 1% of Staff account
b. 0.50% for Sr. Citizens
c. 0.50% spouse of Staff member
d. Nil
Cir.noi. 55 ref. 48/03 dt. 31.05.2017 - Credit Risk Rating Model -
Implementation of Bi-Demsional Model.
In terms of RBI guidelines, CRRM model rating has been modified by introducing
the Facility rating also. Two different dimentions are
17 a. Obligor Rating and Facility rating module
b. Security and management
c. Guarantee standards and security
Under the revised model, B++ ( existing pattern ) is modified as \
a. AB-BBB
18 b. AB-B++
c. AB-B2
d. AB-B**
New CRRM Bi-dimensional model is applicable for all Corporate and MSME
exposures of Rs.5.00 cr. and above and is w.e..f ________
a. 01.07.2017
19
b. 01.04.2018
c. 12.06.2017
d. 01.10.2017
58
KEY –May-2017
1. B 6. C 11 C 16 D
2. A 7. A 12 B 17 A
3. C 8 D 13 A 18 A
4. E 9 B 14 C 19 C
5. A 10 A 15 C
Know Your Circulars - June 2017
Cir. No. 056 ref. 55/04 dt. 02.06.2017 - Debit mandate from NACH prescribed
by NPCI – guidelines for filling up and further process
Which of the following is correct in respect of guidelines for filling up the NACH
Mandate for collection of our loan installments from their operative accounts with
other banks.
a. Branches should obtain the mandates in the prescribed revised format
(supplied by Stationery department ) only. No Photostat copies and
printout from soft copy will not be accepted.
b. Format to be filled in Capital Letters only (preferably with black ink and
with ball pen only ).
01 c. Three copies from the borrower to be obtained and one copy to be sent to
M/s. Techprocess. Second copy will be retained in the branch and the
third copy will be handed over to the customer.
d. Apart from sending the hard copies, branch to prepare Excel sheet and
mail to M/s. Techprocess.(mail ids provided in the circular)
e. On receipt of the mandate, M/s. TechProcess process and will be routed
through NPCI to the respective Banks for approval.
f. Once the approval is given by the other bank, the periodical debits
/Credits will start happening as per the details given in the mandate.
g. All the above.
Cir. No. 058 ref. 52/08 dt. 02.06.2017 - Loan policy revision of guidelines
What is the credit period of peak seasonal OCC limit that can be considered for
the above industries
a. Not more than 3 months within the validity of regular WC limit.
02 b. In case of requirement , sanctioning authority may extend the tenor by
another 1 month.
c. No specification of the period
d. Both A and B are correct.
What is the collateral security required for peak season CC limit?
a. Extension of charge on collaterals securities held for regular WC limit
03 b. 100% of the limit
c. 75% of the limit
d. 50%of the limit
59
Cir.No. 60 ref. 15/4 dt. 05.06.2017 - Import advance remittances - precautions
As per RBI DIR series Cir no. 09 dt. 21.08.2008, Authorised dealer Banks are
permitted to allow Advance remittance for import of Goods up to
04 a. US $ 100000
b. US $ 50,00,000
c. US $ 5,00,000
Which among the following is not in the list of agencies approved for obtention of
P&C reports on the overseas suppliers in support of the genuineness of import.
05 a. M/s. Dun & Bradstreet
b. M/s. Mira Inform Pvt.Ltd.
c. M/s. Crisil
What the period within which the physical import of goods to be made in to India.
a. Within 6 months from the date of remittance
06 b. Within 3 years in case of capital goods from the date of remittance
c. Both A & B are correct
d. Only B is correct
Cir. No. 62 ref. 52/09 dt. 08.06.2017 - Common loan application for MSME
The IBA approved common loan application for MSME advances is applicable for
Credit limits up to Rs.______ lacs under MSME.
07 a. Rs.200.00 lacs
b. Rs.100.00 lacs
c. Rs.10.00 lacs
d. Rs.50.00 lacs
Cir. No. 64 ref. 10/01 dt. 12.06.2017 - GST Act 2017
GSTIN having 15 digits consists of

a. First 2 digits – State code
b. Next 10 digits - PAN Number
08 c. Next 1 digit – Entity / Establishment code
d. Next 1 digit - As of now it is Z for future use
e. Last 1 digit – Checksum
f. All the above.
Cir.no. 65 ref. 26/03 dt. 14.06.2017 - Loan policy , delegation of powers & Credit
monitoring policy – revision of guidelines.
Corrective Action Plan (CAP) can include resolution of which of the following :
a. Flexible structuring of project loans
09 b. Change of management under SDR
c. Scheme for Sustainable structuring of Stressed Assets - S4A
d. All the above.
What is the min. accepted level of creditors for finalizing and implementing the
CAP.
10
a. 60% of Creditors by value and 50% creditors by number in the JLF.
b. 50% of the Creditors by Value in JLF
60
c. 50% by value and 50% by number in JLF.
d. 40% min both by value and number
Cir. No. 66 ref. 48/4 dt. 15.06.2017 - Individual housing loans – Rationalisation
of Risk weights and LTV ratio.
What is the Standard asset provision on Housing Loans which has been reduced
from 0.40%
11 a. 0.30%
b. 0.20%
c. 0.25%
What is the risk weight on Housing loans up to Rs.30.00 lacs with LTV up to
80% is
12 a. 35%
b. 50%
c. 100%
d. 50%
What is the risk weight on Housing Loans above Rs.75.00 lacs with LTV up to
75% is
a. 50%
13 b. 35%
c. 100%
d. 75%
Cir.no. 73 ref. 19/02 dt. 17.06.2017 - customization of Crop Insurance Module

for PMFBY/ restructured weather based crop insurance shcheme.
Which of the following is not correct as per the revised procedure of crop
insurance collection
a. Branch will sanction /renew the crop loan
b. Branch will create land database.
c. System will calculate the premium basing on the land particulars entered
by the branch and debit the crop insurance premium.
14 d. The premium debited to the KCC accounts will be credited to “ Sundry
Creditors – Pooling account s for PMFBY & WBCIS insurance schemes.
e. The premium is to be debited from the pooling account and should be
remitted to insurance company through RTGS/NEFT.
f. System will update the premium remittance transaction particulars.
g. The individual farmer details will be shared to GOI centrally.
h. All the above.
Cir.no. 74 ref. 19/3 dt. 17.06.2017 - Finance to Agriclinics and Agribusiness
centres scheme - continuation for 2017-18.
Finance to Agriclinics and Agribusiness centres can be classified as

a. Direct Agriculture
15 b. Indirect finance
c. Ancillary activities under Agriculture
d. Services under MSME
61
For the loans up to Rs.10.00 lacs per centre under the scheme, the benefits of
____category loans can be extended to Agriclinics and Agri business scheme for
establishment of Agri ventures by the candidates traind under scheme.
16 a. PMEGP
b. SC Action plan
c. ST action plan
d. Mudra
Cir.No. 76 ref. 48/5 dt. 22.06.2017 - Prudential guidelines on Capital Adequacy

and Market discipline.
Which of the following is not approved agency for rating of Bank assets.
a. Care
b. CRISIL
c. FITCH India
17 d. ICRA
e. Brick Work ratings
f. SMERA
g. Infomerics valuation and rating pvt. Ltd.
h. None of the above.
Cir.78 ref. 19/4 dt. 23.06.2017 - Interest subvention scheme.
Under the above scheme, what are the categories of loans falling under short
term credit:
a. Crop loans allowed under PAGCC, kisan credit card, rythumithra group,
18 Joint liability groups.
b. Agrl. Gold loans with interest subvention
c. CCATLs
d. Loans against negotiable warehouse receipts ( upto 6 months)
e. All the above.
What is the period for which interest subvention at 2% will continue on the
restructured amount.
19 a. For 3 years
b. For 5 years
c. For 2 years
Cir No. 81 ref. 5/01 dt. 23.06.2017 - BHIM
Which of the following is correct in respect BHIM referral scheme.

a. An existing BHIM user (referrer) to refer BHIM application to new
user ( referee)
b. New BHIM user ( referee) initiates access to BHIM app form his/her
20 mobile number registered with bank and complete on boarding
process on BHIM ie., downloading, registering and fetching the
bank account.
c. New BHIM user (referee) completes his/her first eligible financial
transaction with any unique user.
d. All the above.
62
What are the three different schemes promoted by NPCI for BHIM app
promotion.
a. BHIM referral scheme for Individuals
21
b. BHIM cash back scheme for Merchants
c. BHIM Aadhaar Merchant incentive scheme
d. BHIM PAN – aadhaar individuals scheme.
Cir. No. 82 ref. 5/2 dt. 23.06.2017 – Launching of Rupay Credit Cards – AB Rupay
Platinum ( Premium) & AB Rupay select ( super premium ) cards.
Which is correct in respect of min. card limit for RuPay Platinum and RuPay
Select cards
22 a. Rs. 60,000/- for Rupay Platinum
b. Rs. 100,000/- for Rupay Select variant
c. Both A and B are correct
Which of the following is correct in respect of eligibility criteria for issue of Cards.
a. Cards are issued primarily to our customers.
b. Only Non photo personalized Cards will be issued.
23 c. Income eligibility per annum is Rs/1.80 lacs and above and for Rupay
platinum Rs.5.00 lacs and above for Rupay select.
d. Cards are also issued against lien on Deposit with 25% margin without
insisting for income proof and scoring model.
e. All the above.
Cir no. 85 ref. 65/3 dt. 28.06.2017 - Amendment to prevention of money
laundering ( maintenance of records ) Act 2002
Which of the following documents are invariably obtained for opening of accounts
of individuals.
a. The Aadhaar number issued by Unique Identification Authority of India
24 b. The Permanent Account Number or Form 60 as defined in Income Tax
rules 1962.
c. Both the above
In case the customer fails to submit Aadhaar number and PAN within six months
period, then the recourse available to the Bank is,
a. The account cease to be operational till the time the Aadhaar and Pan are
25 submitted.
b. Bank at its discretion allow 3 months time to submit the same
c. Credits can be permitted by freezing debits
d. The bank has to provide on such accounts at 10% of amount outstanding.
What the date before which the existing bank accounts shall be ceded with
Aadhaar and Pan
26 a. 31.12.2017
b. 31.03.2018
c. 30.09.2017
d. 01.10.2017
63
Cir.no. 86 ref. 51/3 dt. 30.06.2017 - A B Arogyadaan - generation of e-cards
and premium certificate of the customers.
For generation of E-cards at Branch, Branch can go in to

a. Arogyadaan policy portal in Finacle-web page dialog
27 b. Andhra bank website.
c. Good health TPA site
Cir no. 89 ref. 10/4 dt. 30.06.2017 - GST on purchase or sale of Foreign currency
including money changing we.e.f.01.07.2017
What is the GST to be recovered on Foreign currency purchase or sale in rupees

value:
28 a. @ 18% on the value
b. @5% on the value
c. @12% on the value
d. Nil
Cir. No. 90 ref. 53/4 dt. 30.06.2017 Continuation of waiver of processing charges
on Housing loans and vehicle loans ( 4 wheeler) till 31.10.2017.
What are the applicable processing charges on housing loans as per guidelines.
a. At Rs.300/- per lac
29 b. At Rs.400/- per lac
c. At 0.50% of the limit sanctioned subject to maximum of Rs.10,000/-
+ applicable tax.
In respect of Housing Loans, how the remuneration of HLC shall be paid?
a. By collecting from housing loan borrower
30 b. By debiting P&L account of the Branch
c. By collecting upfront from borrower
d. 1% of rate of interest inbuilt in the interest component and will be paid
annually to the HLCs.
KEY –June-2017
1. G 6. C 11 C 16 D 21 A,B,C 26 A
2. D 7. A 12 A 17 H 22 C 27 A
3. A 8 F 13 A 18 E 23 E 28 A
4. B 9 D 14 H 19 B 24 C 29 C
5. C 10 A 15 C 20 D 25 A 30 B
64
Know Your Circulars - July 2017
Cir. No. 092 Ref No. Dt. 01.07.2017 – Kisan Kalpataru – Modifications
01 Term Loan limit under Kisan Kalpataru scheme can be extended to farmers who have
satisfactory dealing with our Bank for the past ________ years.
a) Five b) Two c) Three d) Four
Cir. No.098 Ref. No.055/06 Dt. 04.07.2017 – Representation of already paid Central Govt.
Cheques in CTS clearing – Caution to Branches/Service centres/CTS Grid Centres.
02 As per the extant guidelines of CTS clearing, the onus of due diligence shfted to the
________________ and the ___________________shall take full responsibility for
collecting on behalf of intended payee and shall exercise due diligence.
a) Presenting Bank
b) Paying Bank
c) Presenting as well as Paying Bank
d) Holder of the Cheque
e) Drawer
Cir. No. 101 Ref No. 55/08 Dt. 05.07.2017 – Cash Payments Using withdrawal Form is
Savings Group of A/Cs – Procedure and precautions.
03 Which of the following is correct.
1. Savings accounts holder can avail the facility of either cheque book or
withdrawal form to operate their accounts.
2. Loose leaf can be issued to a SB account holder with cheque book
facility if he comes in person to withdraw the amount without cheque
book issued to him and place a request in writing.
3. Cheque Book facility is not allowed for accounts of Illiterate persons
and for the AB Easy Savings Bank Account.
Options:
a) 1
b) 2
c) 3
d) All the above
04 Which of the following is incorrect?
1. Withdrawal form is similar to a cheque and can be endorsed further.

2. Withdrawal form is meant for cash drawings only
3. Withdrawal form can be used for any type of transfer transaction
4. Any person other than the account holder/authorized signatory can
come to withdraw the money using withdrawal form along with Pass
Book.
5. Pass Book should be compulsorily updated when payment is made
65
with withdrawal forms.
Options:
a) 1
b) 2
c) 3
d) 4
e) 1,3 & 4
f) All are Correct
Cir. No.103 Ref No.19/7 Dt. 05.07.2017 – Master Circular – Credit Facilities to Minority
Communities
05 Within the target of Priority Sector, a sub target of __________ Adjusted Net Bank
Credit or Credit Equivalent Amount of off-balance sheet exposures, whichever is
higher as on March 31 of previous year has been mandated for lending to weaker
sections which includes, among others, persons from minority community.
a) 10%
b) 12%
c) 15%
d) 18%
e) None of these
Cir No.105, Ref No.19/8 Dt.05.07.2017 – Master Circular – Credit Facilities to Scheduled
Castes (SCs) and Scheduled Tribes (STs).
06 Under Deendayal Antyodaya Yojana – National Rural Livelihood Mission; _____ per
cent of the beneficiaries should be from SC/ST Community.
a) 20
b) 30
c) 40
d) 50
e) 60
Cir No.105, Ref No.19/9 Dt.05.07.2017 – Kisan Samraksha Scheme
07 Following are waived to augment Agricultural Investment Credit under “Kisan

Samraksha Scheme”
1. Techno Economic Viability (TEV) study by the external agencies;

2. TEV by the Branch
3. External Credit Rating
4. Internal Credit Rating
Options:
a) 1
b) 2
c) 3
d) 4
e) 1 & 3
66
Cir No.107 Ref No.27/09 Dated 07.07.2017 – Premature closure of term deposits – non-
levying of penalty charges.
08 Which of the following is correct in respect of penalty on premature closure of Term

Deposit.
1. Deposits of individual deposits (including joint accounts) up to Rs.5

lakh contracted for any maturity period.
2. Deposits of corporate deposits i.e. Corporations, Govt. undertakings,
Bodies, firms, institutions, Associations etc. up to Rs.1.00 crore
contracted up to 90 days.
Options:
a)1
b)2
c) 1 & 2
d) None.
09 Which of the following is correct in respect of penalty on premature closure of Term

deposit.
1. Cancellation for the purpose of settling death claims, of term deposits

standing in the name of individual capacity of the deceased depositor.
2. Cancellation for the purpose of premature renewal provided the
period of new deposit is longer than the remaining period of the
original deposit.
3. Conversion of outstanding balance under Bhagyalakshmi Deposits,
Recurring Deposits and related schemes as Term Deposits provided
the period of new deposit is longer than the remaining period of the
original contract.
Options:
a)1
b)2
c) 3
d) All the above
e) 1 & 2 f) 1 & 3
Cir No.121 Ref No.10/14 Dt. 14.07.2017 – Precaution to be exercised while paying GST
on Purchase of Goods/Availing Services and Collecting GST for Services rendered by the
Bank
10 Our Bank as a supplier of services collects GST @_____ per cent on the value of
services rendered to the customers and pays the tax collected to Central
Govt./respective State Govt./UT.
a)10
b) 12
c) 15
d) 18
67
Cir No.124 Ref 55/9 Dt. 18.07.2017 – Modification of limits for cash payment under ABB at
remove (non-home) branches.
11 Maximum amount of cash that can be withdrawn by a customer at non-home

branches, across the Bank on a particular day through self cheques shall be
Rs.__________ /subject to a maximum of Rs.________ per transaction.
a)50,000, 25,000
b)50,000, 20,000
c) 75,000, 25,000
d)1,00,000, 50,000
Cir No.125, Ref No.11/4 Dt.18.07.2017 - Insolvency & Bankruptcy Code 2016 - Delegation
of powers for initiation of Insolvency Resolution Process.
12 Insolvency & Bankruptcy Code 2016 is a consolidated legislation providing for

Insolvency Resolution Process of ________________.
a)Corporate Persons
b)Partnership Firms
c) Individuals
d) All the above
e) a and b Only
13 Bank being a Financial Creditor can initiate Corporate Insolvency Resolution Process
against the Corporate Debtors who are in default
___________________________.
a) Minimum of Rs.1 lakh at present

b) Minimum of Rs.5 lakh at present
c) Minimum of Rs.10 lakh at present
d) Minimum of Rs.20 lakh at present
Cir No.128 Ref No.10/5 Dt. 20.07.2017 – Bank’s liability for collection of GST towards
certain transactions which are not normal banking transactions
14 GST to be collected on the auction amount of gold ornaments pledged to the bank
a)Zero
b) 3 %
c) 5%
d)12%
e) 18%
Cir No.129 Ref No.52/11 Dt. 21.07.2017 – Investment in Plant and Machinery for the
purpose of classification as micro, small and medium enterprises – Documents to be relied
upon.
68
15 As per the clarification given by Ministry of MSME, GOI, following documents could
be relied upon for ascertaining the investment in Plant and Machinery for
classification of an enterprise as Micro, Small and Medium.
a) A copy of the invoice of purchase of Plant and Machinery

b) Gross Block for investment in Plant and Machinery as shown in the
audited accounts,
c) A certificate issued by a Chartered Accountant regarding purchase
price of Plant and Machinery.
d) All the above
Cir No.134 Ref No.51/04 Dt. 26.07.2017 - AB SB-Diamond Deposit & AB SB Platinum
Deposit Schemes - Renewal of Policy with M/s India First Life Insurance Co. Ltd. & M/s
United India Insurance Co. Ltd. from 1st August 2017 t0 31st July, 2018.
16 Initial Deposit and QAB to be maintained in AB SB Diamond Account is;
a. Rs.50,000 & Rs.3.00 lakh

b. Rs.50,000 & Rs.5.00 lakh
c. Rs.25,000 & Rs.1.00 lakh
d. Rs.1.00 lakh and Rs.3.00 lakh
17 Initial Deposit and QAB to be maintained in AB SB Platinum Account is;
a) Rs.50,000 & Rs.3.00 lakh

b)Rs.50,000 & Rs.1.00 lakh
c)Rs.1.00 lakh & Rs.5.00 lakh
d)Rs.1.00 lakh and Rs.3.00 lakh
18 Life and Accidental Insurance Coverage available to customer of AB SB Diamond
Account is;
a) Rs.50,000 & Rs.1.00 lakh

b) Rs.1.00 lakh and Rs.5.00 lakh
c) Rs.1.00 lakh and Rs.3.00 lakh
d) Rs.50,000 and Rs.5.00 lakh
19 Life and Accidental Insurance Coverage available to customer of AB SB Platinum

Account is;
a) Rs.1.00 lakh and Rs.3.00 lakh

d) Rs.2.00 lakh and Rs.5.00 lakh
Cir No.135 Ref No.51/05 Dt. 26.07.2017 - AB Emerald Current Deposit Scheme - Renewal
of Policy with M/s United India Insurance Co. Ltd. from 1st August 2017 t0 31st July 2018.
20 Initial deposit and QAB to be maintained in AB Emerald Current Deposit
a) Rs.2.00 lakh and Rs.3.00 lakh

69
Cir No.137 Ref No.26/07 Dt.26.07.2017 – Policy on Industry/Sector Wise exposure ceilings
– Revision of existing ceilings
21 The "Policy on Industry/Sector Wise exposure ceilings" as approved by the Board is

given as below:
a) Credit exposure (funded and Non-funded credit limits); The sanctioned limits or
outstanding, whichever are higher, shall be reckoned for arriving at the exposure limit.
However, in the case of fully drawn terms loans, where there is no scope for re-drawl
of any portion of the sanctioned limit, outstanding shall be reckoned as the exposure.
b) Credit equivalent or derivative products like interest rate contracts, exchange rate
contracts etc.
c) Investment exposure (including underwriting and similar commitments).
d) All the above.
Cir No.138 Ref No.45/4 Dt. 26.07.2017 – Savings Bank Account Opening Form – Non-
insistence of additional documents.
22 Which of the following is true in respect of obtaining additional documents/forms for

add on facilities like e-statement, Cheque Book, Mobile Banking, Internet Banking
etc.
a) Customer should submit a letter/separate forms to avail add-on

facilities if he/she has not ticked the relevant fields in savings
account opening form.
b) Customer need not submit any letter/form to avail the add-on
facilities as these are provided by the bank on its own without
customer’s consent
c) Customer need not submit any additional documents/forms for add-
on facilities separately if he/she choose the option by ticking Yes/No
at relevant places in Savings Account opening form.
d) Both a & c
Cir No.139 Ref No.53/7 Dt. 27.07.2017 – Retail Loans – Switch from Bank Rate to MCLR –
23 Who has the powers for 100% waiver of Service Charges in respect of Retail Loans
Switched over from Base rate to MCLR.
a) CLCC
b) ZLCC (A)
c) ZLCC (B)
d) Zonal Manager
e) Second Level Executive at ZO
24 How much to be collected as Service Charges When Retail Loans are switched over
from Base Rate to MCLR?
70
a) 1% of outstanding balance
b) 1% of sanctioned limit
c) 1% of outstanding balance with a minimum of Rs.5000
d) 1% of sanctioned limit with a minimum of Rs.5000
Cir No.141, Ref 05/03, Dt.28.07.2017 - Scheme for utilizing the services of Housing Loan
Counselors (HLC)/ Business Correspondents / Recovery Agents / Retired Staff for
canvassing Rupay Credit Cards.
25 An incentive of Rs.______ will be paid to HLCs/BCs/Recovery Agents and Retired

Staff for every sanctioned application for Rupay Card.
a) Rs.50
b) Rs.100
c) Rs.50 or 0.1% of limit sanctioned whichever is higher
d) Rs.100 or 0.1% of limit sanctioned whichever is lower
KEY-July-2017
1 c 6 d 11 d 16 a 21 d
2 a 7 e 12 d 17 c 22 d
3 d 8 c 13 a 18 b 23 b
4 e 9 d 14 b 19 c 24 c
5 a 10 d 15 d 20 a 25 a
Know Your Circulars - Aug 2017
HO Cir No.150 Ref No.52/12 dated 02.08.2017 Sub: Memorandum of

understanding with Bajaj Auto Limited for financing three wheeler passenger and
cargo vehicles manufactured by the company under MSE (RTO) Category.
Maximum loan that can be allowed for buying a three wheeler and cargo
vehicles under MOU with Bajaj Auto Ltd.
01 a) Rs.2.00 lakhs
b) Rs.2.50 lakhs
c) Rs.3.00 lakhs
d) Rs.4.00 lakhs
Repayment period allowed for loans extended under MOU with Balaj Auto
Ltd.
02
a) 3 Years excluding holiday period
71
b) 4 Years including holiday period
c) 5 years including holiday period
d) 6 years excluding holiday period
Upfront Fees/Processing Charges to be collected on loans extended under
MOU with Bajaj Auto Ltd.
a) Loans up to Rs.1 lakh - Rs.500 per loan

b) Loans up to Rs.2 lakh - Rs.1000 per loan
03
c) 1.3% of the limit (min. Rs.3000) on Loans extended between Rs.2 lakhs
and Rs.3 lakhs
d) 1.3% of the limit (max. Rs.3000) on Loans extended between Rs.2
lakhs and Rs.3 lakhs
e) b and c
f) a and c
g) b and d
Which of the following are correct on loans extended under MOU with
Bajaj Finance
a) The loan shall be financed under RTO

b) Loan on second hand vehicle also can be extended.
c) Borrower should be covered under Pradhan Mantri Suraksha Bima Yojana
04 d) Borrower should be covered under Pradhan Mantri Jeevan Jyothi Bima
Yojana
e) The account is to be classified under MUDRA Yojana.
f) All the above
g) a, c and e
h) a, c, d and e
i) a, b, d
Cir No.151 Ref. No.35/02 Dt. 01.08.2017 - Sub: 'Digi Gyan' - Digital Literacy and
Promotion Programme for both staff and customers.
Which of the following statements are true in respect of Digi Gyan.
a) It is a programme to actively engage the staff/customers to encourage and motivate all

to use a digitally enabled cashless system for transfer of funds/bill payments.
05 b) The campaign would target encouraging both staff and customers in conducting every
day banking Using digital products.
c) Staff identified for campaign are referred as e-facilitators
d) The campaign period is 01.08.2017 to 31.01.2018
e) All the above.
Cir No.153, Ref No.53/13 Dt. 02.08.2017: Sub: Master Direction on Lending to
Micro, Small & Medium Enterprises (MSME) Sector.
With the enactment of MSMED Act 2006, the inclusion of following sector
06 in the definition of MSME.
a) Infrastructure
72
b) Manufacturing
c) Power
d) Service
Medium Enterprise is an enterprise where investment in Plant and

Machinery is;
07 a) Rs.10 lakhs to 2 crore

b) Rs.2 crore to 5 crore
c) 10 crore and above
d) Rs.5 crore to 10 crore
Overdrafts extended by banks after 08.04.2015 up to Rs.5000 under

PMJDY accounts will be considered under priority sector if household
annual income does not exceed;
08 a) Rs.45,000 in Rural & Rs.65,000 in non-Rural areas

b) Rs.1.00 lakh in Rural & Rs.1.50 lakh in non-Rural areas
c) Rs.1.00 lakh in Rural & Rs.1.60 lakh in non-Rural areas
d) No income criteria fixed
e) None of the above.
Collateral Security need not be obtained for credit limits under MSME up
to;
a) Rs.1. lakh
09
b) Rs.25 lakh
c) Rs.100 lakh
d) Rs.5 lakh
e) Rs.10 lakh
MSME loan application with a credit limit of Rs.25 lakh and above should
be disposed of as per BCSBI within;
10 a) 6 weeks
b) 2 weeks
c) 4 weeks
d) 8 weeks
Objective of BCSBI code is;
a) Give positive thirst to MSME sector by providing easy access to efficient banking services;
11
b) Promote good and fair banking practices by setting minimum standard in dealing MSE;
c) Improve understanding of business through effective communication;
d) All the above.
If buyer fails to make payment of the amount to the supplier, he shall be
liable to pay compound interest with monthly interest to the supplier on
the amount from the appointed day or on the date agreed on _________
12
times of the bank rate notified by the RBI.
a) 2 times
73
b) 3 times
c) 6 times
d) None of the above.
Cir No.156 Ref No.53/9, Dt. 09.08.2017 - Sub: Central Scheme to Provide Interest
Subsidy (CSIS) on Education Loans - Refund of CSIS Interest Subsidy.
Nodal Bank for releasing subsidy for Education Loans under Centrla Scheme to Provide
Interest Subsidy (CSIS) is;
a) SBI
13 b) Canara Bank
c) Bank of Baroda
d) Punjab National Bank
e) None of the above
Cir NO.157, Ref No.19/16, Dt. 10.08.2017 - Sub: Master Circular-Deendayal
Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM);
Eligibility Criteria for SHGs to avail loans;
a) SHG shall be in active existence at least since the last 6 months as per the books of
accounts of SHGs and not from the date of opening of SB account.
b) SHGs shall be practicing "Panchasutras" i.e. Regular meetings, Regular Savings, regular
14
inter-loading, Timely repayment and Up-to-date books of accounts.
c) The accounts shall be graded and obtain a minimum rating of "B".
d) The existing defunct SHGs are also eligible for credit if they are revived and continue to be
active for a minimum period of 3 months.
e) All the above.
A minimum of Rs.5 lakhs is to be sanctioned as Cash Credit Limit to each SHGs for a period of
5 years with a yearly drawing power (DP). The DP may be calculated as follows:
a) DP for the first year: 6 times of the existing corpus or minimum of Rs.1 lakh whichever is
higher.
b) DP for the second year: 8 times of the corpus at the time of review / enhancement or
15
minimum of 2 lakhs, whichever is higher?
c) DP for the third year: Minimum of Rs.3 lakhs based on Metro Credit Plan (MCP) prepared
by SHG and appraised by Federations / Support agency and the previous credit History.
d) DP for fourth year onwards: Minimum of Rs.5.00 lakhs based on MCP prepared by SHG,
appraised by Federations / Support agency and previous credit history.
e) All the above
Which of the following is credit in respect of Banks sanctioning term loan

to SHGs in doses as mentioned below:
a) First Dose: 6 times of the existing corpus or Minimum of Rs.1 lakh whichever is higher.
16 b) Second Dose: 8 times of existing corpus or minimum of Rs.2 lakhs whichever is higher.
c) Third Dose: Minimum of Rs.3 lakhs based on MCP prepared by SHGs, appraised by
Federations / Support agency and the previous credit History.
d) Fourth Dose: Minimum of Rs.5 lakh based on MCP prepared by SHG, appraised by
Federations / Support agency and previous credit history.
74
e) All the above.
Which of the following is correct in respect of Repayment Schedule of

Term Loan Sanctioned to SHGs;
a) First year/first doses of loan will be repaid in 6-12 months in monthly instalments.
b) Second Year / second dose of loan will be repaid in 12-24 months in monthly instalments.
17
c) Third Year / Third does of loan will be repaid in 24-36 months in monthly instalments.
d) The loan from fourth year/fourth dose has to be repaid between 3-6 years based on the
cash flows in monthly instalments.
e) All the above
f) None of the above.
Cir No.160, Ref No.51/6, Date: 11.08.2017 Sub: Abhaya Savings Bank Scheme-
Renewal of policy with M/s United India Insurance Co. Ltd. for the insurance year
commencing from 01.09.2017 to 31.08.2018
Which is correct with reference to Abhaya Savings Scheme
a) Sum insured will be Rs.50,000.00

b) Upper age limit is 75 years
18 c) Premium to be collected is Rs.15.00
d) Insurance year will be 01.09.2017 to 31.08.2018
e) Premium will be recovered for the main account holder and also for the joint
account holders.
f) All the above
Cir No.162 Ref. No.53/10, Dt. 16.08.2017: Sub: Education Loan to NSIT (Netaji
Subash Institute of Technology) students - Enhancement of Fee for the academic
year 2017-18.
Which of the following is correct in terms of Education Loan to students
admitted to courses offered by NSIT?
a) Need based subject to maximum of Rs.7.20 lakh or 95% of the course cost
whichever is lower.
b) Margin : 5%
c) Rate of Interest: 1 Y MCLR + 1.30% i.e. 9.95% at present floating. (0.50%
further concessions for Girl Child)
19 d) Need not be insisted
e) Co-obligation of parents / spouse
f) Course Period + 1 year or 6 months after getting job whichever is earlier.
g) Maximum repayment period is 10 years. The accrued interest during the
holiday period is to be added to the principal while EMI is fixed for repayment.
h) The loan should be covered under CGFSEL (Credit Guarantee Fund Scheme on
Educational Loan).
i) All the above
75
Cir.no. 163 Ref. No.52/14, Date: 17.08.2017 Sub: Master Circular - Deendayal
Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM)
Which of the following is correct in respect of DAY-NULM scheme?
a) The underemployed and unemployed urban poor will be encouraged to set

up small enterprises relating to manufacturing, service and small business
for which there is considerable local demand.
20
b) Local Skills and local crafts should be particularly encouraged.
c) Each Urban Local Body should develop a compendium of such
activities/projects keeping in view skills available, marketability of products,
costs, economic viability etc.
d) All the above.
Which of the following correct in respect of selection of beneficiaries
under DAY-NULM scheme?
a) The percentage of women beneficiaries under SEP shall not be less than 30
per cent.
b) SCs and STs must be benefited at least to the extent of the proportion of
21 their strength in the city/town population of poor.
c) A special provision of 3 per cent reservation should be made for the
differently-abled
d) At least 15 per cent of the physical and financial targets under this
component shall be earmarked for the minority communities.
e) All the above (c)
Which of the following is correct in respect of norms/specifications for
individual desirous of setting up micro enterprise for self-employment
and avail benefit of subsidized loan from any bank?
a) Applicant should have attained the age of 18 years at the time of applying
for loan
b) Maximum unit project cost for a micro-enterprises is Rs.2.00 lakh
c) Loan should be covered under CGTMSE or any other guarantee fund for the
22 purpose of availing guarantee cover
d) Repayment schedule would range between 5 to 7 years after initial
moratorium of -18 months
e) No margin money up to a loan of Rs.50,000.00
f) Margin money of 10% max (preferably 5%) should be taken for higher
loans
g) Loan can be extended as Term Loan, Working capital or as Composite Loan.
h) All the above (c)
76
Which of the following is correct in respect of norms/specifications for
availing the benefit of subsidized loans for group based micro-
enterprise loans?
a) All members of the group enterprise should have attained the age of 18
years at the time of applying for bank loan.
b) Maximum unit Project Cost for a group finance for enterprise is Rs.10 lakhs
c) Loan can be extended either as a single loan to the group functioning as
one borrowing unit or each member of the group can be provided individual
loans up to Rs.2 lakhs and an overall cap of Rs.10 lakhs based on mutual
23 trust and collateral substitute among the group.
d) Loan can be extended as Term Loan, Working Capital Loan or as Composite
loan
e) No margin money for loans up to Rs.50,000 and a maximum of 10% of the
project cost (5% preferably) should be taken.
f) Loan should be covered under CGTMSE or any other guarantee fund for the
purpose of availing guarantee cover.
g) Repayment schedule would range between 5 to 7 years after initial
moratorium of 6-18 months as per the norms of the banks.
h) All the above. ©
Cir. No.165, Ref No.19/18, Date: 17.08.2017 - Sub: Launching of New Scheme
"Self Business Group (SBG) - SHG".
Which is correct in respect of financing to SBG?
a) SHGs having 5 years of association with our Bank and successfully completed 3
credit rotations with good repayment record and a special aptitude for
entrepreneurship shall be identified and financed up to Rs.25 lakhs.
b) The scheme has been launched to empower women by making them self-
sustainable and self-reliant.
24 c) Zonal Offices shall provide necessary hand holding support, ensure forward and
backward linkages to SHGs with proper skills, aptitude and capabilities to do good
business under this scheme.
d) The scheme is to be launched as a pilot scheme initially in AP and Telangana
where our Bank RSETIs are existing.
e) The proposed scheme shall comprise of both working capital and term loan
components with a total bank loan up to a maximum of Rs.25 lakhs.
f) All the above. ©
Which is correct in respect of financing to SBG?
a) Margin of the project would be 10%

b) Term Loan – Up to 90% of the Term Investment Proposed
25
c) Working Capital Loan (need based) : 90% of the recurring expenditure
d) Both Term Loan and working capital can be given independently up to Rs.25
lakhs
e) Repayment : Term Loan in 60-72 monthly instalments depending on cash flow
77
with a gestation period of 3-6 months
f) Working capital valid for one year with Annual review/renewal.
g) All the above
h) All the above excepting (d)
Processing fee on loan extended to SBG ?
a) Nil Up to Rs.25,000 per member
b) 0.50% of sanctioned limit of above Rs.25,000 per member ©
26 c) 0.50% of sanctioned limit of Rs.25,000 and above per member
d) 0.75% of sanctioned limit of above Rs.50,000 per member
e) 0.75% of sanctioned limit of Rs.50,000 and above per member
f) None of the above.
Cir. No.170, Ref No.26/10, Date:18.08.2017 - Sub: Loan Policy-Definition to
recognize client s 'Corporate'.
"Clients with aggregate exposure (fund based Plus non-fund based limits)
of Rs.5 crore and above are defined as "Corporate" clients for the purpose
of reporting exposures internally to the top management as well as for
submission of RBS data to the RBI." This definition is not applicable in
respect of exposure to;
a) individuals for personal purposes,
27 b) Govt. Departments,
c) Banks
d) a and b only
e) b and c only
f) a and c only
g) All the above ©
h) None of the above
Cir No.171, Ref No.19/19, Dt.18.08.2017. Sub: Interest subvention scheme for
short term crop loans during the year 2017-18.
Interest Subvention Scheme for 2017-18 applicable for short term crop
loans up to Rupees;
a) One Lakh
28 b) Two Lakh
c) Three Lakh (c)
d) Five Lakh
What is the period for which interest subvention at 2% will continue on
the restructured amount?
e. For 3 years
29 f. For 5 years
g. For 2 years
h. For 1 year ©
i. None of the above
30 2% Interest subvention is available on short term crop loans subject to
78
the condition that bank allows loans to the farmers at _____;
a) 4%
b) 4.50%
c) 6%
d) 7% (c)
e) 9%
An additional interest subvention of 3% pa can be extended to those
farmers repaying in time subject to a maximum period of one year from
the date of disbursement, is made available on the condition that the
effective rate of interest on short term production credit up to Rs.3.00
lakhs for such farmers will be _____ % pa;
31
a) 4% ©
b) 4.50%
c) 6%
d) 7%
e) 9%
Cir No.172, Ref No.19/20, Date: 19.08.2017 Sub: Master Circular on SHG linkage
Programme
Lending to SHGs should be included by the banks as part of their;

a) Lending under DRI scheme
b) Lending to weaker sections (c)
32 c) Lending to backward classes
d) Lending under Agriculture
e) All the above
f) None of the above
Which of the following is true in respect of opening of Savings Account for
SHHs?
a) SHGs, registered or unregistered, which are engaged in promoting savings
habits among their members would be eligible to open savings bank account with
banks.
b) SHGs need not necessarily have already availed credit facilities from banks
before opening SB accounts.
33 c) KYC verification of all the members of SHG shall not be required while opening
the savings bank account of the SHG as KYC verification of all the office bearers
shall suffice.
d) No separate KYC verification of the members or office bearers shall be
necessary at the time of credit linking of SHGs.
e) a & b only
f) a, b & c only
g) All the above ©
Cir No.174, Ref No.53/11 Date: 19.08.2017 Sub: Pradhan Mantri Awas Yojana
(Urban)-Amendments in guidelines.
79
As per the amended guidelines, Beneficiary means;
a) a family comprising husband, wife, unmarried children. The family should not
own a pucca house either in his/her name or in the name of any member of
his/her family in any part of India.
b) An adult earning member (irrespective of marital status) can be treated as a
34
separate household - provided that he/she does not own a pucca house in his/her
name in any part of India and also provided that in the case of a married couple,
either of the spouses or both together in joint ownership will be eligible for a single
house, subject to income eligibility of the household under the scheme.
c) None of the above
d) both a & b ©
Cir No.175, Ref No.51/7, Date: 19.08.2017 Sub: AB Emerald plus Current Deposit
Scheme- Renewal of policy with M/s United India Insurance Co. Ltd. for the
insurance year commencing from 01.09.2017 to 31.08.2018.
35 Initial deposit and QAB for AB Emerald Plus Deposit Scheme is

a) Rs.1.00 lakh and Rs.1.00 lakh (c)
36 Which of the following is true in respect of Insurance benefit available to
AB Emerald Plus Account Holders;
a) Available for individuals and sole-proprietary accounts only
b) Free Accidental Insurance (age 5 to 75 years) of Rs.5 lakhs with a premium of
Rs.160 (per person per annum)
c) Free Life Insurance coverage of Rs.2 lakhs (age 18-50 Years) provided under
PMJJBY.
d) All the above (c)
Cir No.191, Ref.No.26/12, Dt.31.08.2017 Sub: Submission of IAS reports -
Deficiencies observed in conducting and reporting of Impaired Assets Study (IAS).
IAS report conducted by an officer should contain the following;

a) Observation of IAS Official on wilful default of the borrower.
b) Diversion of funds.
c) Information on Name of the officials who handled the account from the
beginning to till date.
37
d) Value of primary & Collateral securities
e) Position of SARFAESI/Legal Action in the Account
f) Position of submission of claims under CGTMSE/ECGC etc. as the case may be:
g) Details of Adhoc limit/Excess drawals allowed
h) Position of cheques purchased and returned
80
i) Whether business bonafides (P&C reports) of the beneficiaries were obtained at
the time of issuing LCs.
j) All the above (c)
KEY-August-2017
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
C C E G E D D C E A D B B E E E
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
E F I D E H H F G B G C D D A B
33 34 35 36 37
G D A D J
Know Your Circulars - Sep 2017
Cir. No. 195 Ref. 26/13 dt.01.09.2017 – Credit management – LFAR observations
– Compliance.
The borrowers with credit exposures [Fund and non fund] above ____ Crs to be
rated by external agencies
01 a. 10 Crs
b. 20 Crs
c. 5 Crs
d. No need for external rating.
____ % of Penalty is levied for borrower account with exposure of Rs.10 Crs and
above for noncompliance in getting external rating.
02 a. 2
b. 1
c. 3
d. Nil
Audited Balance Sheet is required for the borrowers having credit facility more
than Rs.____ Lac and above from banking system with turnover/ gross receipts
exceeding Rs.____ Lac per annum
03 a. 25 and 100
b. 25 and 50
c. 50 and 100
d. 75 and 100
Re verification properties shall be conducted on lapse of ____ years from the date
of valuation.
04
a. 2 ½.
b. 2.
81
c. 1
d. 3
Cir. No. 197 ref. 49/05 dt. 04.09.2017 – Safe deposit locker operation details in
LKOPS menu – Plugging of revenue leakage.
What is the finacle menu used to reset the password?

a. LKOPS
05 b. LKCM
c. LKRCM
d. Can be don’t by the customer himself @ internet banking
How many locker operations are free in a Quarter?
a. 3 times, with carryover
06 b. 6 times, with no carryover
c. 3 times, with no carryover
d. 6 times, with carryover
Charges to be collected, If the customers crossed free locker operations?
a. Rs.25
07 b. Rs.50
c. Rs.75
d. Rs.100
Cir.No. 199 ref. 53/14 dt. 06.09.2017 – Central Scheme to provide interest subsidy
(CSIS) on Education loans.
Under Central Scheme to provide interest Subsidy(CSIS), which loans can be

claimed for interest subsidy?
08 a. Housing loans
b. Inland Education loans
c. Abroad study loans
d. Both a & b
Finacle menu for entering education loan details
a. HEDLN
09 b. HEDULN
c. HELN
d. HEDLIS
Cir. No. 200 ref. 52/16 dt. 07.09.2017 – New Loan Product – “AB Aadhar Pay”
What are the equipments required for installing “AB e-Vyapar” app?
a. Smart phone with OTG
10 b. Biometric
c. Data pack/ Internet
d. All the above
Who will create the Merchant/ Terminal ID to use the app
a. Branch
11 b. Credit department, Zonal Office
c. Credit card department, HO
d. Customers
Fingerprints of the customer is authenticated by
a. DIT
12 b. NPCI
c. UIDAI
d. RBI
82
Limit of the term loan under “AB Aadhar pay” is
a. Rs. 5000
13 b. Rs.10000
c. Rs. 15000
d. Rs.20000
What is the maximum loan repayment tenor and holiday period
a. 24 months and 1 month
14 b. 12 months and 2 months
c. 7 months and 3 months
d. Customer’s choice
Cir. No. 201 ref. 45/08 dt. 07.09.2017 – Instructions for submission of IRAC
Returns for the quarter ending
Asset identified as a Substandard, provisioning to be made are

a. 15% flat on outstanding balance or 25% on outstanding balance in case of
unsecured exposure.
b. 10% flat on outstanding balance or 15% on outstanding balance in case of
15 unsecured exposure.
c. 20% flat on outstanding balance or 25% on outstanding balance in case of
unsecured exposure.
d. 15% flat on outstanding balance or 30% on outstanding balance in case of
unsecured exposure.
Asset identified as a Doubtful 1, provisioning to be made are
a. 25% on secured portion and 75% on unsecured portion.
16 b. 25% on secured portion and 100% on unsecured portion.
c. 25% on secured portion and 50% on unsecured portion.
d. 25% on secured portion and 25% on unsecured portion.
a. 25% on secured portion and 75% on unsecured portion.
17 b. 25% on secured portion and 100% on unsecured portion.
c. 40% on secured portion and 100% on unsecured portion.
d. 25% on secured portion and 25% on unsecured portion.
a. 75% on outstanding liability
18 b. 80% on outstanding liability
c. 100% on outstanding liability
d. 50% on outstanding liability
Cir.No.202 ref. 26/14 dt. 07.09.2017 – Framing of Guidelines for acceptable
EQUIFAX customer score along with Credit Information Report.
What is the minimum score acceptable to lend w.r.t M/s EQUIFAX

a. 650
19 b. 610
c. 707
d. 700
IF the score is between ___________, proposal can be referred to the higher
authority.
20 a. 700 to 705.
b. 674 to 706
c. 650 to 700
83
d. 600 to 700
If the credit score is less than ______ proposal should not be entertained.
a. 600
21 b. 650
c. 674
d. 625
Cir. No. 205 ref. 26/15 dt. 08.09.2017 – Loan policy – Policy on lending to micro
finance Institutions (MFI‟s) for on-lending to agriculture and allied activities
As per the RBI master circular no 43, an NBFC-MFI is defined as a non-deposit

taking NBFC (other than a company licensed under section 25 of the Indian
companies act, 1956) that fulfils the
a. Minimum net owned funds of Rs.5 Crs and for NBFC-MFI registered in the
22 North Eastern region of the country, it will be Rs. 2 Crs and
b. Not less than 85% of its net assets are in the nature of “qualifying assets”.
In addition, aggregate amount of loan extended for income generating
activity should be not less than 50% of the total loans given by MFIs.
c. Either a or b.
d. Both a & b.
What is “Net asset”?
a. Total assets other than money market instrument.
23 b. Total assets other than cash and bank balances.
c. Total assets other than bank balances and money market instrument.
d. Total assets other than cash and bank balances and money market
instrument.
Cir.no.206 ref. 26/16 dt. 08.09.2017 - Loan policy & credit monitoring –
Reiteration of guidelines
For fresh sanction of term loans of Rs. _____ and above, controlling offices shall
depute one official to the branch to verify the assets financed by bank and to
confirm that the unit/ assets are established/ created in terms of the sanction
24 within a period of ____ months
a. 5 crs and 3 months
b. 3 crs and 3 months
c. 10 crs and 3 months
d. 3 crs and 1 month
Advances above Rs._____ unit inspections for eligible accounts shall be conducted
by Technical officer/ Senior Manager/ Chief Manager of zonal office or Chief
managers & Senior managers heading the branches in the zone once in a year and
25 report compliance to circle office.
a. 2 crs
b. 5 crs
c. 10 crs
d. 1 crs
Cir.no. 208 ref. 55/18 dt. 08.09.2017 – Non – Levying of Bank charges on
Donation received towards the National Defence Fund (NDF)
84
Which of the following Fund doesn’t attract any bank charges
a. National Pension Fund (NPF)
26 b. National Defence Fund (NDF)
c. a&b
Cir.No. 214 ref. 19/23 dt.12.09.2017 – Revision of spreads for the interest rates in
Agricultural advances
Credit Rating (CRS/CRAS/CRRM) is applicable in case of advance Rs._____ &

above to firm and corporate borrowers and Rs.____ & above in case of individual
and Non corporate borrowers
27 a. 5 lac and 25 lac
b. 10 lac and 25 lac
c. 5 lac and 10 lac
d. 15 lac and 25 lac
Cir.218 ref. 26/18 dt:15.09.2017 – Revision of spread for the advances under
categories of MSME, CIFD/CPCD and CRE linked to MCLR
CRS (Credit rating system) is applicable for all fund based limits of Rs._____ to
Rs._____
a. 25 lac to 1 cr
28 b. 50 lac to 1 cr
c. 5 lac to 1 cr
d. 10 lac to 1 cr
CRRM (credit risk rating model) is applicable for all fund &/or Non fund based
limits of Rs._____
29 a. Rs. 5 cr and above
b. Rs. 10 cr and above
c. Rs. 5 cr and below
d. Rs. 10 cr and below
For all fund &/or non fund based limits of Rs______ and above must be rated by
external agencies
30 a. 10 crs
b. 15 crs
c. 5 crs
d. Not required
Invoked Bank guarantees and deferred payment guarantees attracts penal interest
of
31 a. 1%
b. 2.25%
c. 2.5%
d. 2%
85
On non submission of ABS(Audited Balance Sheet) or financial statements as on
31st March to the branch by 31st October attracts penal interest of
32 a. 1%
b. 2.25%
c. 2.5%
d. 2%
Delayed/Non submission of MSOD as per guidelines (fund based working capital
33
limits of Rs.1 crore and above) attracts penal interest of
a. 1%
b. 2.25%
c. 2.5%
d. 2%
Cir No. 219 ref no. 65/4 dt:15.09.2017 – KYC AML – Provision of Customer ID to
Walk-in Customers.
If a bank has a reason to believe that a customer is intentionally structuring a

transaction into a series of transaction below the threshold of Rs.50,000, after KYC
verification the transactions are to be filled in ___________ and the report is send
34 to ___________
a. Suspicious transactions report and RBI
b. Suspicious transactions report and our HO
c. Suspicious transactions report and NPCI
d. Suspicious transactions report and FIU-India
To enter the details of walk-in customers finacle menu used is ___________
a. HWALK
35 b. HWALKIN
c. HWAKIN
d. HWAIN
Accounts opened using OTP based e-KYC shall not be allowed for more than
_________ years within which customer due diligence procedure is to be
completed
36 a. 6 months
b. 3 months
c. One year
d. Two years
As per the RBI along with the bio-metric authentication, OTP is also to be
incorporate as a second factor for user authentication. This OTP is received to the
user mobile number which is registered with UIDAI. The scheme code for this new
37 scheme is
a. SBOTP
b. SBBOTP
c. SBGOT
d. SBBOP
Cir. No. 220 ref no: 67/01 dt: 15.09.2017 Introduction to Central Fraud Registry
(CFR) by RBI
In place of “caution advice ” RBI introduced _______

38
a. Central fraud registry
86
b. Central Fraud committee
c. Central board for fraud enquires
d. No change
Cir no. 221 ref no. 52/17 dt:18.09.2017 – CEGSSC – Modifications in the operating
guidelines
CEGSSC stands for

a. Credit Enhancement Generation Scheme for Scheduled Castes
39 b. Credit Exposure Guarantee Scheme for Scheduled Castes
c. Credit Exposure Guarantee Scheme for Scheduled Castes
d. Credit Enhancement Guarantee Scheme for Scheduled Castes
Minimum loan amount covered under this scheme
a. 25 lac
40 b. 15 lac
c. 10 lac
d. 5 lac
The guarantee cover for the loan amount between Rs.15 lac to Rs. 1 cr is
a. 100%
41 b. 80%
c. 70%
d. 60%
The guarantee cover for the loan amount Rs.1 cr to Rs.2 cr is
a. 100%
42 b. 80%
c. 70%
a. 60%
The guarantee cover for the loan amount Rs. 2 cr to Rs. 5 cr is
e. 100%
43 f. 80%
g. 70%
a. 60%
The guarantee cover for the loan amount Rs. 5 cr and above
a. 100%
44 b. 80%
c. 70%
d. 60%
Cir. No. 222 Ref no:19/24 dt: 19.09.2017 – KISAN MITRA
Loan tenor is
a. 6 months
45 b. One year
c. Two years
d. Based on the crop
Rate of interest is
a. MCLR +0.50%
46 b. MCLR+1%
c. MCLR+0.25%
d. MCLR+0.75%
87
Penal interest charges is
a. Upto Rs.25000 – nil and above Rs.25000 – 2%
47 b. Upto Rs.50000 – nil and above Rs.75000 – 2%
c. Upto Rs.15000 – nil and above Rs.25000 – 2%
d. Upto Rs.10000 – nil and above Rs.25000 – 2%
Cir no. 226 ref:11/7 dt:22.09.2017 – guidelines on SARFAESI
SARFAESI stands for

a. Securitisation and Reconstruction of Financial Assets and Enforcement of
security Interest Act.
b. Securitisation and Restructure of Financial Assets and Enforcement of
48 security Interest Act.
c. Securitisation and Reconstruction of Financial Assets and Ensure of security
Interest Act.
d. Securitisation and Reconstruction of Fraud Assets and Enforcement of
security Interest Act.
Time period provided to the borrower to pay outstanding liability in the demand
notice issued under 13(2) notice.
49 a. 30 days
b. 60 days
c. 90 days
d. 180 days
Authorised Officer means;
a) All Officers
50 b) AGM & Above
c) Chief Manager & Above
d) Zonal Manager
Account eligible for invoking SARFAESI Act;
a) Liability exceeding rupees one lakh.
51 b) Security Interest is not Agricultural Land.
c) Amount due is not less than 20% of principal amount and interest.
d) All the above
Notice U/S 13 (2) is to be served through;
a) Registered post with AD
52 b) Personal delivery under acknowledgement
c) Fax, Courier or e-mail
d) All the above.
After issuing notice u/s13(2), if borrower raises any objections against the notice
issued under Section 13 (2), it is to be replied within;
53 a) 10 days
b) 15 days
c) 20 days
d) 30 days
After taking possession of the secured asset, possession notice is to be published
in two local newspaper within;
54 a) Immediately
b) Within 10 days
c) Within 30 days
d) Within 7 days
88
If due to local conditions or resistance by the borrower/occupier of the premises,
then petition under Section 14 is to be filed within;
55 a) District Magistrate
b) Chief Metropolitan Magistrate
c) Both a & b
d) None of the above
District Magistrate or CMM shall pass suitable order within a period of;
a) 15 days
56 b) 30 days
c) 90 days
d) No time period is fixed
Time period is to be given in the notice issued under section 8(6);
a) 15 days
57 b) 60 days
c) 10 days
d) 30 DAYS
Sale of secured asset can be done by either inviting tenders from the public or by
holding public auction or by private treaty, if the loan amount or the value of the
secured asset is below;
58 a) 10.00 lakh & above
b) 100.00 lakh & below
c) 1.00 lakh & above
d) 5.00 lakh & below
Sale of secured asset through private treaty are allowed only;
a) If assets are valued less than 1 crore and it must have put for public
auction/tender for a minimum of one time.
59 b) If value 1 crore and above and it must have been put for public
auction/tender for a minimum of two times.
c) Sale can be considered only through e-auction;
d) Both a & b
If sale consideration is Rs.50 lakh and above at the time for crediting the said
amount to the account of transferor or seller and when the immovable property is
not an agricultural land, then TDS is to be deducted an amount equal to;
60 a. 1% of Sale consideration
b. 5% of sale consideration
c. 10% of sale consideration
d. TDS is not required for recovery of amount to NPA account.
Cir. No. 227 ref: 26/19 dt: 22.09.2017 – Exposure ceilings to single/ Group
borrowers – Fixation of ceilings for the financial year 2017-18
Tier I & tier II capital of the bank as per 31.03.2017 ABS is

a. Rs. 19,196.33 crs
61 b. Rs. 20,000.00 crs
c. Rs. 19,100 crs
d. Rs. 19,120.33 crs
Cir. No. 229 ref: 53/17 dt: 26.09.2017 – Frauds in Housing loan –precautions
62 Certified copies of title deeds to be obtained;
89
a. Yes
b. No
c. Left to the discretion of the branch manager
e. All the above
Which of the following is true in respect of obtaining supplementary legal opinion;
a. To be obtained after registration and creation of mortgage of security.
b. Not required to be obtained as legal opinion is already taken before
63 registration and mortgage creation.
c. Left to the discretion of the branch head.
d. All the above
e. None of the above
Cir. No. 231 ref: 11/8 dt: 26.09.2017 – Legal – Insolvency Professionals
Professional fee payable to Insolvency professional under ED powers;

a. 10 lac
64 b. 15 lac
c. 30 lac
d. 40 lac
Professional fee payable to Insolvency professional under CGM/ GM Legal powers
a. 10 lac
65 b. 15 lac
c. 30 lac
d. 40 lac
Cir. No. 235 ref no: 65/05 dt: 29.09.2017 – KYC updation.
For high risk customers, KYC updation is to be done once in

a. A year
66 b. Two years
c. Eight years
d. Ten years
For medium risk customers, KYC updation is to be done once in
a. A year
67 b. Two years
c. Eight years
d. Ten years
For low risk customers, KYC updation is to be done once in
a. A year
68 b. Two years
c. Eight years
d. Ten years
KEY FOR CIRCULARS ISSUED DURING SEPTEMBER-2017
1 C 11 C 21 C 31 D 41 A 51 D 61 A
2 B 12 C 22 A 32 A 42 B 52 D 62 A
3 A 13 B 23 D 33 A 43 C 53 B 63 A
4 A 14 A 24 B 34 D 44 D 54 D 64 C
5 B 15 A 25 B 35 B 45 B 55 C 65 B
90
6 B 16 B 26 B 36 C 46 A 56 B 66 B
7 B 17 C 27 A 37 C 47 A 57 D 67 C
8 B 18 C 28 C 38 A 48 A 58 D 68 D
9 B 19 C 29 A 39 A 49 B 59 D
10 A 20 B 30 C 40 B 50 C 60 A
Know Your Circulars - Oct 2017
Cir No.239, Ref No.55/21, Dt. 06.10.2017: Sub: Servicing of Sovereign Gold Bonds
- Centralized Depository Participant Branch (ABDEMAT) designated as Nodal
Office-Procedural Guidelines
01 Sovereign Gold Bonds Issued by________________?

a) Public Sector Banks
b) Scheduled Banks
c) Reserve Bank of India
d) Government of India
e) All the above
02 Nodal Office for servicing Sovereign Gold Bonds in our Bank is;
a) Head Office
b) Centralized Depository Participant Branch
c) Zonal Computer Centre
d) Circle Office
03 Which of the following is true in respect of Sovereign Gold Bonds (SGBs);
a) SGBs are repayable on expiry of 8 years from the date of issue.
b) Premature redemption of the bonds may be permitted after 5th year from the
date of issue of such bond.
c) Request for premature closure should reach Nodal Office at least 10 days before
the next interest payment date.
d) Nodal Office will upload this request to RBI through E-Kuber Portal.
e) Bonds shall be redeemed in Indian Rupees only and redemption shall be based
on simple average of closing price of gold of 999 purity of previous week
(Monday to Friday) published by India Bullion and Jewellers Association Ltd.
f) The redemption proceeds shall be credited to the Bank account of the customer.
g) All the above.
04 Brokerage on SGBS would be ____ % of total subscription received, which would be
distributed to the branches.
a) One
b) Two
c) three
d) Four
91
e) Five
Cir No.241, Ref.No.27/16, Dt. 07.10.2017 Sub: Launch of Sovereign Gold Bond
Scheme (SGB) 2017-18 - Series III.
05 Following are eligible to scribe SGBs.
a) Individuals
b) Partnership Firms
c) HUFs
d) Trusts
e) Pvt. Ltd. Companies
f) Universities
g) Charitable Institutions
h) All the above
i) All except Partnership Firms, Pvt. Ltd. Companies.
j) All except Partnership Firms, Pvt. Ltd. Companies and Charitable Institutions.
06 Maximum limit of subscription to SGBs shall be;
a) 4 KG for Individuals
b) 4 KG for HUFs
c) 20 KG for Trusts and similar entities.
d) The annual ceiling will include bonds subscribed under different tranches during
initial issuance by Government and those purchased from the Secondary Market.
e) In case of joint holding, the investment limit of 4 KG will be applied to the first
applicant only.
f) All the above.
07 SGBs shall bear interest at the rate of _____ per cent (fixed rate) per annual on the
nominal value and it shall be paid half-yearly rests.
a) 1.50
b) 2.50
c) 2.75
d) 3.25
e) 3.50
Cir No.246, Ref No.53/18, Date : 10.10.2017 - Sub: Pradhan Mantri Awas Yojana
(Urban) - Tax exemptions to the subsidy on EWS and MIG under CLSS scheme.
08 PMAY (Urban) - Which of the following is true in respect of Tax exemptions to the
subsidy on EWS and MIG under CLSS scheme.
a) The interest subsidy to be received by an individual assesse shall not be
taxable;
b) The interest subsidy is not taxable up to Rs.5000/- only.

c) In case where the interest paid is claimed as deduction in the computation of
income from house property, the amount of deduction in the computation of
income from house property, the amount of deduction shall be restricted to the
amount of interest paid as reduced by the amount of subsidy received, so as to
prevent double benefit to the tax payer.
d) a and c only
92
e) b and c only
f) All the above.
Cir No.247, Ref No.27/19, and Date: 10.10.2017 Sub: "Sampoorna Vikas" -
Campaign for all round performance.
09 "Sampoorna Vikas" campaign for all round performance launched from 01.10.2017
to 31.12.2017 will cover the following activities;
a) Opening of CASA accounts - with a special focus on Quality CA and SB accounts;
b) Targets for net increase in RAM Credit-Specific Targets for new products, targets
for RLEs and SMEEs.
c)Sale of 3rd party products - category wise targets for premium to be collected
for Life, Non-Life, Heath Insurance Products and Target for mobilizing DEMAT
A/cs.
d) Digital Products - Targets for Credit Cards, Merchant enrollments, Internet
Banking, Debit Cards, AB Tej & UPI Installations
e) NPA Reduction/Recovery - Targets for OTS, reduction of NPAs with focus on
NPAs below Rs.1 Cr and Recovery in TWO accounts.
f) FI - APY enrollment target for each branch.
g) All the above
Cir No.253/05/04 Date: 12.10.2017 -Issue of Credit Card to our CASA a/c holders.
10 Our Bank has been in the business of credit card both as issuer and acquirer since
a) 1981
b) 1985
c) 1990
d) 1995
e) 2005
11 Which of the following credit cards are being issued by our Bank;
a) VISA Classic
b) VISA Gold
c) VISA Platinum
d) VISA Signature
e) Master Classic
f) Master Titanium
g) Rupay Platinum (premium)
h) AB Rupay Select (Super Premium)
i) All the above
12 Credit Cards are being sanctioned basing on;
a) Income Criteria (i.e., IT Returns/Form 16 / Salary Certificates)
b) Against lien on Deposits.
93
c) Our borrowers who are enjoying a limit of Rs.10 lakhs and above with performing
status.
d) AB Emerald Plus Account Holders.
e) CASA account holders who are maintaining a minimum balance of Rs.25,000
and above for the last 12 months.
f) All the above
13 Limit that can be sanctioned to CASA account holders who maintain a minimum
balance Rs.25000 above and less than Rs.50,000 is;
a) Rs. 10,000
b) Rs. 15,000
c) Rs. 20,000
d) Rs. 25,000
e) Rs. 30,000
f) Rs. 35,000
balance Rs.50,000 above and less than Rs.1,0,000 is;
a) Rs. 20,000
b) Rs. 30,000
c) Rs. 40,000
d) Rs. 50,000
e) Rs. 60,000
f) Rs. 75,000
balance Rs.1,00,000 and above is;
a) Rs. 40,000
b) Rs. 50,000
c) Rs. 60,000
d) Rs. 75,000
e) Rs. 80,000
f) Rs. 1,00,000
Cir No.254, Dt. Ref. No.52/18, Date: 12.10.2017 - Scheme for financing to MSEs
and Traders against property (ABhirudhi) - Scheme guidelines.
16 Finance to MSE borrowers under ABhirudhi can be extended for;
a) Working Capital against property,
b) Term Loan against property,
c) Non-Funded (BG/LC) against property
d) Composite Loan against stock and machinery
e) Working Capital against stock only
f) Term Loan against stock and machinery only
g) All the above
h) a, b and c only
i) e & f only
94
17 Which of the following is true in respect of eligibility under ABhirudhi?
a) All Micro and Small units, existing as well as new units
b) Retail/Wholesale Traders
c) Applicant should have minimum of 2 years standing and profit making for the
past 2 years.
d) New entrants (only for limits up to Rs.1.00 Cr) can also be considered
provided the estimates/projections are reasonable.
e) All the above
18 Which of the following is true in respect of Quantum (Limit) and Tenor of loans
under ABhirudhi
a) Minimum loan should be above Rs.10 lakh
b) Maximum loan should be Rs.6.00 Crores
c) Working Capital can be sanctioned for 2 years
d) Term Loan repayable in maximum 7 years including holiday period.
e) Irrespective of the tenor, the limits are to be reviewed once in a year and
processing charges shall be collected on annual basis for WC Limits.
f) a & c only
g) b & d only
h) a, b & e only
i) All the above
19 Which of the following is true in respect of assessing working capital requirement,
turnover and requirement of documents under ABhirudhi scheme?
a) Not more than 25% of the assessed turnover shall be fixed as WC limit
b) Estimates/Projected turnover subject to not more than 30% of the last two
year's average turnover shall be fixed as the WC Limit.
c)For limits above Rs.10 lakh and up to Rs.25 lakhs, actual turnover up to
Rs.1.00 crore is to be taken into account, and statutory returns like GST returns
& other tax returns along with declaration from the borrower.
d) For limit of Rs.25 lakh and above, actual turnover should be above Rs.1.00
crore and Audited Balance Sheet is to be considered.
e) All the above.
20 Which of the following is correct in respect of assessing term loan under ABrudhi
scheme?
a) The limit shall be arrived as the cost of assets to be created/procured less
minimum margin of 25% on the cost of the asset.
b) The limit shall be arrived as the cost of assets to be created/procured less
minimum margin of 20% on the cost of the asset.
c) DSCR shall be arrived based on the PAT, depreciation and proposed TL interest
and Installments.
d) Average DSCR shall not be less than 2.00

e) Average DSCR shall not be less than 1.50
f) a, c & d
g) b, c & e
95
h) a, c & e
i) b, c & d
21 Which of the following is true in respect of Security norms for lending under
ABhiruddhi?
a) Primary for TL - Assets created out of TL
b) Primary for BG/LC - Cash margin of minimum of 15%, Counter guarantee of the
applicant and extension of charge on entire current assets of the Unit.
c) Security for SOD/Collateral for TL, BG and LC - (i) minimum of 125%
(i.e. margin of 20%) by way of Semi Urban/Urban/Metro immovable property,
or (ii) minimum of 111.11% (i.e., margin of 10%) by way of liquid securities
viz., term deposits of our bank/NSCs/LIC Policy (surrender value).
d) All the above.
Cir No.256, Ref No.52/19, Date: 13.10.2017 - Sub: CIBIL MSME Ranks (CMR), New
Product from TransUnion CIBIL Ltd. for MSME and other business segments with
exposures above Rs.10 lakhs and up to Rs.10 cr. - Description of the product,
Guidelines for utilization etc.
22 Which of the following is true in respect of Credit Information Report (CIR) of a

Customer (Consumer & Commercial Segments) generated through TransUnion
CIBIL,
a) CIR will have list of loans availed by them in various FIs/Banks,
b) CIR will have Payment History and amount of overdue, defaults if any.
c) CIR is a factual report of the credit payment history compiled from information
received from various credit grantors.
d)CIR will help the Credit grantors to take their lending decisions quickly and
objectively.
e) All the above
23 Transunion CIBIL recently launched CIBIL MSME Rank (CMR), a credit risk rank for
MSME & Other Business entities. Which of the following is true in respect of CMR;
a) CMR is a Credit Default Predictor Model developed specially for MSMEs and
other business entities with aggregate exposure above Rs.10 lakh and up to
Rs.10 crore.
b) CMR measures and predicts the risk of the business entity on a scale of 1 to
10, CMR1 being the least risky unit and CMR10 being the most risky unit. The
higher the CMR the higher the risk of NPA associated with the unit.
c) CMR uses machine learning algorithms to predict the probability of borrower
becoming NPA in the next 12 months.
d) The product covers 7 years of through-the-cycle credit history data.
e) CMR has 10 grades with 1 to 7 for non-default and 8-10 for default.
However TU CIBIL considers CMR 7 or above as Risky. In case of accounts
with CMR 8, the probability of default is estimates at one in three (33.33%).
f) All the above.
Cir NO.257, Ref No.51/08, Date: 16.10.2017 Sub: Renewal of Policies with M/s
United India Insurance Co. Ltd. for insurance year commencing from 01.11.2017
96
to 31.10.2018 - Abhaya Gold savings Scheme (ABG), Kiddy Bank (KK) & Abhaya
Savings Bank-Plus (ASB+).
24 Insurance Premium to be collected in respect of ABG, KK & ASB+ is (amount in
rupees including GST);
a) 88,56,34 respectively.
b) 91,56,36 respectively.
c) 88,56,36 respectively.
d) 91,54,34 respectively.
e) None of these
25 Entry Age (in years) for ASB+, ABG & KK should be;
a) 5-70, 5-75 & 5.70 respectively
b) 5-75, 5-70 & 5.75 respectively
c) 5-70, 55-70 & 18-50 respectively
d) 5-75, 5-75 & 5-70 respectively
Cir NO.262, Ref No.53/19 Dt. 17.10.2017 Sub: Clean Loans to Andhra Bank Retired
Employees (Pensioners) to pay Health Insurance Premium.
26 Which of the following is true in respect of Clean Loans to Andhra Bank Retired
Employees (Pensioners);
a) Clean Loan can be given only Health Insurance Premium only.
b) Clean Loan can be given to meet all kinds of insurance premium for Self
c) Premium is to be paid directly to the insurance company tied with our
Bank only.
d) Premium is to be paid directly to the insurance company of Pensioner's
choice.
e) Amount can be credited to SB a/c of the pensioner if he produces premium
paid receipt.
f) a & c
g) a, c & d
h) a, c, d & e
i) b, c & d
j) b, c, d & e
i) All the above
27 Which of the following is true in respect of eligibility under facility of clean loans to
AB Pensioners.
a) Only Retired employees are eligible
b) Family pensioner also eligible
c) Should be drawing pension from Andhra Bank only
d) Pension can be drawn from any Bank
e) a & c
f) a, b & c
g) a, b & d
h) a, b, c & d
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i) None of the above
28 Which of the following is true in respect of quantum of loan under facility clean
loan to AB Pensioners?
a) Six times of monthly pension
b) Maximum limited to Rs.35,000/-
c) Eight times of monthly pension
d) Maximum limited to Rs.40,000/-
e) Amount of loan should be rounded off to the nearest hundred.
f) Amount of loan should be rounded off to the nearest thousand.
g) Existing clean loan availed for this purpose is to closed.
h) All the above
i) a & b
j) a & d
k) b & d
l) a, d, f & g
m) b, d, f & g
n) a, d, e & g
29 Which of the following is true with regard to Repayment Period, Take Home Pay
and Liability Insurance in respect of clean loans to pensioners?
a) 12 months, No stipulation and LI not mandatory respectively.
b) 24 months, No stipulation and LI not mandatory respectively.
c) 12 months, 40% take home pay, and LI mandatory respectively.
d) 24 months, 40% take home pay, and LI not mandatory respectively.
e) 12 months, 40% take home pay and LI not mandatory respectively.
Cir No.264, Ref No.55/22 dt. 20.10.2017 sub: Diversion of Funds by borrowers
through Current Account with other Banks.
30 CRILC Stands for?
a) Central Registry for Information of Letter of Credit
b) Centre for Request on Information System on Large Credits
c) Centre Repository on Information of Letters of Credit
d) Central Repository for Information on Large Credits
e) Central Registry for Information on Large Credits
31 Which of the following is true in respect of steps taken by the IBA to address the
issue of diversion of funds by borrowers through current account(CA) with other
banks;
a) Member banks prior to opening of CA should ascertain through CRILC
whether
the customer is availing credit facility from any bank;
b) In case the account is reported better than SMA-1 category, the CA opening
bank to request the lead bank (as per CRILC) on the designated email id for
NOC/Permission.
c) If such NOC/Permission is not received from the lead bank within 15 days
98
from
the date of request, the bank may open current account without waiting for the
NOC/Permission and thereafter advise the lead bank.
d) In case account is reported under SMA-1 category & above, the CA opening
bank should
Mandatorily obtain prior NOC/Permission from the lead bank.
e) Nodal Officers be appointed by member banks along with designated email id
on which other banks would send their request for obtaining NOC/Permission
prior to opening of CA with them.
f) All the above.
32 Our Bank has designated _________________ as Nodal Officer for the purpose of
CRILC and intimated to IBA.
a) Zonal Manager
b) Second Level Executive at ZO
c) Circle General Manager
d) Second Level Executive at Circle Office
e) GM (Corporate Planning) at HO
f) GM (Large Corp) at HO
g) GM (Operations) at HO
i) Chief Manager (Credit) at ZO.
Cir No.267 dt.52/20 date: 24.10.2017; sub: Loans extended under PMMY (Mudra)
and Stand Up India - Introduction of Guarantee Cover Codes - Updation of Codes
for extraction of data to be submitted to NCGTC for obtaining guarantee cover.
33 Guarantee Cover available for Mudra & Stand-up India Schemes are;
a) CGTMSE-NCGTC cover for Mudra
b) CGTMSE-NCGTC cover for Stand Up India
c) CGFMU-NCGTC cover for Mudra
d) CGSSI-NCGTC cover for Stand Up India
e) a & b
f) c & d
g) a & d
h) b & c
i) None of the above
KEY FOR KYC-OCTOBER
1 c 8 d 15 f 22 e 29 a
2 b 9 g 16 h 23 F 30 d
3 g 10 a 17 e 24 b 31 f
4 a 11 j 18 i 25 a 32 g
5 i 12 f 19 e 26 h 33 f
6 f 13 d 20 h 27 h
7 b 14 d 21 d 28 l
99
Know Your Circulars - Nov 2017
Cir No.280, Ref. No.65/06, Dt. 01.11.2017 - Linking Aadhaar -Clarification
01 Which of the following Acts was amended to make linking of Aadhaar mandatory to
Bank Accounts.
A) Banking Regulation Act.
B) Reserve Bank of India Act
C) PML (Maintenance of Records) Act 2002
D) Indian Evidence Act
E) Indian Contract Act
F) Negotiable Instruments Act
Cir No.287, Ref No.26/29, Date: 08.11.2017 - Sub: Review/Revision of Credit Risk
Mitigation and Collateral Management Policy of the Bank.
02 Which of the following cover Credit Risk Mitigation and Collateral Management Policy
of the bank?
A) Purpose of obtaining of collateral,
B) Acceptable types of collaterals
C) Important guidelines to be adhered while accepting types of securities
D) Inspection of securities
E) Insurance of securities
F) Documentation
G) Legal Vetting etc.
H) All the above
03 Which of the following is true with regard to valuation of commercial
agricultural/industrial/residential real estate, i.e. land/building/flat/factory/shop?
A) Market value of the property given by the approved Engineer/Firm.
B) Distress sale value of the property as per approved engineer's valuation
report as on the date of present valuation.
C) Market value of the property that is available in the title deed.
D) Market value of the property enquired upon from the local people.
E) None of the above.
04 A prospective borrower has offered a property as security that was
purchased/acquired less than a year ago. Which of the following should be
considered as the value of the property to be taken while processing the proposal?
A) Purchase Price as per the Registered Sale Deed/Value as per Gift Deed or
Settlement Deed.
B) Distress Sale Value of the property as per approved engineer's valuation report as
on the date of present valuation.
C) A or B whichever is higher.
D) A or B whichever is lower.
100
Cir No.288, Ref No.26/30, Dt. 09.11.2017 Sub: Clarifications on Revision of
Spreads for the advances under categories of MSME, CIFD/CPCD and CRE linked to
MCLR.
05 Which of the following is true in respect of Financing to Cashew Industry?
A) Interest rates are applicable on par with Rice Mills.

B) In case of collateral security of 50% and above of loan amount a concession of
0.25% in applicable interest rates, under spread component of "Business Strategy,
Market Competition etc."
C) In respect of women entrepreneurs, a concession of 0.50% on the applicable rates
of interest, under spread component of "Business Strategy, Market Competition etc.
D) B & C Only
E) All the above.
06 What is the maximum ceiling that can be financed under the scheme of "SOD against
real estate to Traders"?
A) Rs.5 crore
B) Rs.10 crore
C) Rs.15 crore
D) Rs.20 crore
E) Rs.25 crore
Cir No.294, Dt.10.11.2017: Sub- Launch of IndiaFirst Little Champ Plan.
07 Which of the following is true in respect of IndiaFirst Life Little Champ Plan?
A) It is participating Endowment Life Insurance Plan.

B) Premium rates start from Rs.1349/- per month or Rs.4015/- per quarter or
Rs.7,934/- per half year or Rs.15,500/- per annum.
C) Minimum age is 21 years as on last birthday and maximum age at the time of
applying for the plan is 45 years as on the last birth day.
D) Policy Term period depends upon the Premium Payment Term and ranges from
15-25 years.
E) Premium Paying Term ranges from 7 to 14 years.
F) Minimum Sum Assured for premium paying term of 7 years to 9 years is
Rs.1.50 lakh
G) Minimum Sum Assured for premium paying term of 10 years to 14 years is
Rs.1.50 lakh
H) Option to chose Death cover or Accidental Total Permanent Disability (ATPD)
cover or a combination of both.
I) No need to pay any future premiums, in case of death or ATPD (if opted).
J) All the above.
101
08 Which of the following is true in respect of IndiaFirst Life Little Champ Plan?
A) Policy can be surrendered after payment of two or three full year’s premium for
a premium paying term of 10 or 10+ years respectively.
B) If the life assured commits suicide within 12 months from the date of
revival/re-instatement, benefit payable will be equal to the higher of surrender
value or 80% of total premium paid excluding the taxes.
C) No amount is refunded if surrendered within 12 months of taking policy.
D) A & B Only
E) A & C Only
F) None of the above
G) All the above
Cir. No.295 Ref No.26/31, Date: 10.11.2017 Sub: ECGC-Renewal of Export Credit
Insurance for Banks – (Whole Turnover Packing Credit (ECIB[WT-PC] & Export
Credit Insurance for Banks Whole Turnover Post Shipment Credit (ECIB[WT-PS])
for the period 01.07.2017 to 30.06.2018.
09 The maximum amount up to which claims will be paid to the bank for the packing
credit advance granted during one ECIB Year is;
A) 792 Cr.
B) 762 Cr.
C) 772 Cr.
D) None of the above.
10 Percentage cover applicable for losses up to 1917.89 lakh is ;
A) 65
B) 90
C) 75
D) 50
11 Maximum amount up to which claims will be paid to the bank for post shipment credit
advance granted during the ECIB cover of one year is;
A) 928 Cr.
B) 528 Cr.
C) 328 Cr.
D) None of the above
Cir No.300, Ref No.26/34, Date: 15.11.2017 – Sub: Credit Rating System – Validity
and review of credit rating of a borrowal account bi-annually-Reiteration of
guidelines.
12 Which of the following is true in respect of Repeated Credit Rating System bi-annually?
A) Credit Rating (CRS/CRAS/CRRM) once assigned shall be normally valid for a

minimum period of six months.
B) Credit Rating shall be reviewed and revised basing on the audited financial
statements/provisional statement at 6 monthly intervals.
C) In the event of slippages of credit rating based on provisional balance sheet,
102
the account shall be downgraded.
D) A & B Only
E) A & C Only
F) B & C Only
G) All the above.
Cir No.302, Ref No.52/21, Dt.18.11.2017: Sub-Framework for Revival &
Rehabilitation of MSMEs – Reiteration of Guidelines.
13 Forwarding account to the committee for CAP will be mandatory in cases of account
reported as;
A) SMA-ZERO
B) SMA-1
C) SMA-2
14 In case the committee decides that recovery action is to be initiated against an
enterprise, such enterprise may request for a review of the decision by the committee
within a period of ____ days from the date of receipt of the decision of the committee.
A) 30
B) 10
C) 20
15 For account aggregating exposure up to Rs.10 crore, restructuring of the debt of an
enterprise should be done within;
A) 20 working days
B) 10 working days
C) 50 working days
D) 90 working days
16 No collateral security is required for credit limits up to Rs._____ lakhs for MSE units.
A) 1
B) 3
C) 5
D) 25
E) 10
F) None of the above
Cir No.308, Ref No.51/10, Dt.23.11.2017: Sub- AB Abhaya Jeevan & AB Abhaya
Jeevan Plus Schemes-Renewal of policies with M/s IndiaFirst Life Insurance Co.
17 Insurance coverage available for account holders of AB Abhaya Jeevan & AB Abhaya
Jeevan+
A) Rs.50,000 & Rs.1,00,000
B) Rs.1,00,000 & Rs.1,50,000
C) Rs.1,00,000 & Rs.2,00,000
D) Rs.1,50,000 & Rs.2,00,000
E) None of the above
Cir No.310, Ref. No.48/6, Dt. 27.11.2017 : Master Circular on Operational Risk.
103
18 Operational Risk is the risk of loss resulting form;
A) Inadequate or failed internal processes.
B) Loss resulting from people and systems.
C) External Events.
D) It includes Legal risk but excludes strategic and reputation risk.
E) Unlike credit risk and market risk, operational risk is inherent in all business
processes of the bank.
F) All the above
19 Which of the following approaches prescribed by the new capital accord for
computation of capital charge in the increasing order of risk sensitivity and
sophistication.
A) Basic Indicator Approach
B) The Standard Approach
C) Advances Measurement Approach
E) All the above.
Cir No.311, Ref No.26/35, Date.29.11.2017 Sub: Early Warning Signals (EWS)
Project – Pre implementation guidelines.
20 Our Bank has made agreement with EWS Solution Provider for generation of Early
Warning Signals. The scope of the project is;
A) To identify incipient sickness in borrower accounts and provide requisite
reports, help in preparation of plan and corrective actions needed through use
of technology, credit knowledge and market intelligence.
B) To capture or collect data on real time basis from different sources like banks
transaction data, non-financial data of accounts, external data like published
balance sheets, industry and their trends, ratings etc.
C) To capture unstructured data available in the environment like field reports,
analyst report, stock markets, Industry reports and peer group data, news
items about company, Employees, products and services etc.
D) The captured data from varied sources should be collected, analyzed and
inference will be drawn through provided solution. System will analyze and
profile in-depth inference for taking appropriate action.
E) The EWS solution is expected to provide real time information about vulnerable
accounts to every level of authority.
F) For effective implementation of the EWS solution, the data flow and flow of
information should be automated with least user intervention.
G) All the above
Cir No.312, Ref No.26/36, Date : 29.11.2017 Sub- Takeover of Accounts from
Banks and Financial Institutions – Reiteration of guidelines/clarifications.
21 Takeover of account from other bank, the status of account in other bank should be;
A) Standard Asset
B) Asset with Positive Net worth
C) Asset should be in Sub-standard category
22 Information on reporting as SMA02 can be obtained from CRILC for credit limit of
Rs.____ and above.
A) 10 Cr
B) 5 Cr
104
C) 2 Cr
D) 1 Cr
E) None of the above
23 Account copies of borrowal account with the present bankers/financial institution shall
be obtained at least for the last ___ months and ensure that the conduct of the
account is satisfactory and no adverse features are notices.
A) 12
B) 9
C) 6
D) 3
24 In case of account with exposure of Rs.5 crore and above, minimum external credit
rating of the account should be _____.
A)BB (+ or -)
B) B +
C) A ++
D) A
KEY For November 2017
1 C 4 D 7 J 10 C 13 C 16 E 19 E 22 B
2 H 5 E 8 D 11 B 14 A 17 C 20 G 23 A
3 B 6 C 9 C 12 G 15 A 18 F 21 A 24 A
Know Your Circulars-December-2017

Cir NO.317/.65/07Dt. 01.12.2017: Effective Implementation of KYC/AML/CFT
01 Which of the following is true in respect of implementation of KYC/AML/CFT

guidelines?
A) Branches should fill up all columns like Occupation, Annual Income, Expected
Turnover, Risk Category, fixing of threshold limits etc.
B) Self attested photo copies of KYC documents submitted by the customers are to be
verified with originals and signed by the concerned officer having verified the same.
C) Branches should ensure that all documents are obtained from different types of
customers (Ex. Proprietary concerns/partnership/companies /Trusts/Societies) as per
the guidelines.
D) Branches should send letter of thanks to the account holder on opening of an
account without fail. Appropriate caution is to be taken if the letter is returned
undelivered.
E) Risk categorization shall be undertaken based on parameters such as customers’
105
identify, social/financial status, nature of business activity, information about the
clients' business etc.
F) Risk categorization is to be undertaken based on parameters such as customer
identify, social/financial status, nature of business activity, information about the
clients’ business etc.
G) All the above
02 All suspicious transactions identified by the branches are to be reported to
KYC-AML Cell, HO by email immediately (copy marked to the concerned ZO)
to report the same to FIU-India with the time frame of ______ days from the
date of identification of the transaction as suspicious transaction at branch)
A) 3
B) 7
C) 10
D) 15
E) 30
03 Periodical KYC updation under risk categorization is to be done;
A) Once in every two years for high risk customers.
B) Once in every eight years for medium risk customers.
C) Once in every ten years for low risk customers.
D) All the above.
Cir NO.318, Ref No.65/08, Date: 01.12.2017 Sub: Applicability of Aadhaar as an
Identify document for Non-Resident Indians (NRIs)/ (PIOs) /(OCIs)
04 Section 2(V) of the Aadhaar Act defines 'resident' as an individual who has
resided in India for a period or periods amount in all to ________ days or
more in the twelve months immediately preceding the date of application of
enrolment.
A) 179
B) 180
C) 181
D) 182
E) None of these.
Cir No. 320, Ref No.53/21, Date: 04.12.2017 Sub: Pradhan Mantri Awas Yojana
(Urban) - Middle Income Group (CLSS for MIG) - modifications.
05 Time period of the Credit Linked Subsidy Scheme for Middle Income Group
(CLSS for MIG) is extended up to;
A) 31.03.2018
B) 30.06.2018
C) 30.09.2018
106
D) 31.12.2018
E) 31.03.2019
06 Carpet area of MIG-I and MIG-II has been increased to "up to _____ Sq.
metre" and up to _____ Sq. metre", respectively.
A) 90 and 100
B) 90 and 110
C) 120 and 150
D) 120 and 160
E) 130 and 180
Cir No.324, Ref. No.11/10, Date: 05.12.2017 Sub: Settlement of claims preferred
by the Legal Heirs of Deceased Constituents - Adopting Simplified Procedure -
Reiteration of existing guidelines.
07 Simplified procedure for settlement of death claims by the field level

functionaries can be followed for the claim amount up to rupees _________?
A) 10,000
B) 25,000
C) 50,000
D) 1,00,000
Cir NO.325, Ref. no.21/02, Date: 07.12.2017 Sub: "Online Complaint Registration
Mechanism" (OCRM) [Whistle Blower Mechanism}
08 Which of the following in respect of objective of "Online Complaint

Registration Mechanism" (OCRM) [Whistle Blower Mechanism] is;
A) To enable the employees to raise concern about any allegation of Corruption and
misuse of office towards achieving greater transparency.
B) Maintenance of Corporate Governance.
C) To provide a framework to the employees to act as Whistle Blowers.
D) All the Above.
09 Designated Authority for handling the complaint is under Whistle Blower
Mechanism is:
A) Zonal Manager
B) Circle General Manager
C) General Manager - HR
D) Chief Vigilance Officer
Cir No.326, Ref. No.53/23 Date: 08.12.2017 Sub: Dr. Ambedkar Central Sector
Scheme of Interest Subsidy on Education Loans for Oversees Studies
10 Which of the following is true in respect of Interest subsidy on Education

Loan for Overseas Studies for Economically Backward Class (EBCs) and Other
107
Backward classes (OBCs) under Dr. Ambedkar Central Sector Scheme?
A) Interest subsidy under the scheme is applicable to Education Loan (Abroad)
Overseas Studies i.e. Masters, M Phil and PhD belonging to EBCs and OBCs students
only.
B) Students should have secured admission in the University abroad for Masters,
M. Phil or Ph.D level courses with the overall family income not more than 1.00 lac per
annum for EBCs and Rs.3.00 lakhs for OBCs.
C) Income proof certificate issued by the competent authority is to be submitted by
the borrower.
D) The interest subsidy under the scheme shall be available during moratorium period,
i.e. course period + 1 year or six months after getting job, whichever is earlier.
E) Loans sanctioned prior to 01.04.2014 are not eligible.
F) All the above.
Cir No.327, Ref.No.52/22, Dt. 11.12.2017 Sub: "MSME Mitra" - New Loan product
11 Up to what per cent of regular working capital limit can be sanctioned as

additional working capital for MSEs at the time of sanction/renewal of
working capital limits for meeting temporary rise in Working capital
requirements.
A) 10
B) 15
C) 20
D) 25
E) NIL
12 MSME Mitra scheme was launched by our bank to;
A) To enable MSEs to acquire similar units.
B) To enable MSEs to acquire a stake in other MSEs.
C) To enable MSEs to pay GST.
D) To specially address the liquidity problems being faced by MSME units on account of
delay in realization of Input Tax Credit under GST.
E) All the Above
13 Which of the following is true in respect of MSME Mitra;
A) Unit must belong to MSME category and shall be availing regular Fund Based
Working Capital Limits from our bank.
B) Account should be standard.
C) Conduct of the account should be satisfactory.
D) Limit-quantum of loan : 20% of existing fund based working capital limit or 80% of
input tax credit due to the unit whichever is lower.
E) Maximum period of 6 months over and above the gestation/holiday period of 2
months.
F) Rs.100 per lakh subject to a maximum of Rs.25,000/- shall be collected as
processing charges.
108
G) All the above.
Cir NO.330, Ref No.26/37, Sub: Review/Revision of Credit Risk Mitigation and
Collateral Management Policy of the Bank - Clarifications.
14 Which of the following is to be considered for valuation of the security offered

as primary security was purchased/acquired within the last one year?
A) Purchase price as per the Registered Sale Deed/Value as per the Gift Deed or
Settlement Deed.
B) Present Market Value/Fair Market Value of the property as per approved engineer's
valuation report as on the date of present valuation.
C) Lower of (A) and (B);
D) Higher of (A) and (B);
E) None of these.
15 Which of the following is to be considered for valuation of the security offered as
collateral security was purchased/acquired within the last one year?
A) Purchase price as per the Registered Sale Deed/Value as per the Gift Deed or
Settlement Deed.
B) Distress Sale Value of the property as per approved engineer's valuation report as
on the date of present valuation.
C) Lower of (A) and (B);
D) Higher of (A) and (B);
E) None of these.
Cir No.334 Ref. No.52/23 Dt. 14.12.2017 Sub: Scheme for financing to MSEs and
Traders against property (ABhivrudhi) - Modification in Scheme guidelines.
16 Under ABhirudhi Scheme, basis of value of the properties (immovable

properties) accepted as security shall be;
A) Value of the property as given by the Branch Head.
B) Fair Value of the property as per approved engineer's valuation report.
C) Distress Value of the property as per approved engineer's valuation report.
D) Least of (A), (B) and (C).
E) Lower of (B) and (C).
F) None of the above.
Cir No.335 Ref No.52/24 Date: 14.12.2017 Sub: Powers for approval of final ROI
on Rice Mills & Cotton Ginning Units - Modification of guidelines.
17 ZLCC (A) can permit concession up to ___ % in the applicable spread

component of 'business strategy, market competition etc.,' for Rice Mills and
____ % in the applicable spread component of 'business strategy, market
competition etc.,' for Cotton Ginning Units subject to that the rate of interest
after concession shall not be less than 'BR' / 1yr MCLR+RP (applicable TP, if
any to be added).
A) 0.25 and 0.50
109
B) 0.50 and 0.25
C) 0.50 and 1.00
D) 1.00 and 0.50
18 CLCC (A) can permit concession up to ___ % in the applicable spread
component of 'business strategy, market competition etc.,' for Rice Mills and
____ % in the applicable spread component of „business strategy, market
competition etc.,' for Cotton Ginning Units subject to that the rate of interest
after concession shall not be less than 'BR' / 1yr MCLR+RP (applicable TP, if
any to be added).
A) 0.25 and 0.50
B) 0.50 and 0.25
C) 0.50 and 1.00
D) 1.00 and 0.50
Cir No.339 Ref 26/39 Date: 16.12.2017 Sub: Risk Based Supervision (RBS) -
Maintenance of data base for ensuring compliance of specified guidelines.
19 Which of the following fields can be entered in RBSDET (menu option

customized in Finacle for RBS)?
A) Legal Audit
B) Compliance of sanction terms and conditions
C) CIRs of Credit Information Companies
D) Half Year Review
E) Collateral Security Details
F) Registration with Registrar of Companies
G) CRILC
H) All the above
20 Which of the following new fields are provided in HCLM menu option?
A) Valuer Name
B) Date of Valuation
C) Due date of valuation
D) Date of submission of original title deeds
E) Date of first legal opinion
F) Date of re-verification of title documents
G) All the above
H) None of the above.
Cir No.341, Ref. No.19/35 Date: 18.12.2017 Sub: Finance for "Hydroponics Green
Fodder Production"
21 In a dairy activity, feed cost is about ____________ of total milk cost;

A) 13 to 35 %
B) 25 to 35 %
110
C) 50 to 65 %
D) 70 to 75 %
22 In a dairy activity, green fodder constitutes about ____________ of the total
input feed;
A) 13 to 35 %
B) 25 to 35 %
C) 50 to 65 %
D) 70 to 75 %
23 According to the National Dairy Development Board recommendation, during
lactation, a cow yielding 8 to 10 litres of milk per day be fed to;
A) 25 to 30 Kg of green fodder
B) 4 to 5 kg of dry fodder
C) 4 to 4.5 kg of concentrate
D) All the above
E) (A) and (B) only
F) (A) and (C) only
G) (B) and (C) only
24 __________ is a scientific way of growing plants/crops in water without any
soil, generally in controlled conditions/environment. In this method, water is
generally enriched with or incorporated with a well balanced Formula of the
nutrients that are essential for plant growth.
A) Hydroproponics
B) Hydrochloronics
C) Hydroponics
D) Hydrocarbonics
25 Fodder Crops suitable for cultivation under Hydroponics method are;
A) Barley
B) Oats
C) Maize
D) Cowpea
E) All the above.
F) All except (C)
G) All except (B)
111
26 Which of the following is true in respect of lending norms for financing
cultivation of green fodder using Hydroponics;
A) No margin up to a limit of Rs.1.00 lac.
B) 25 % of margin on unit cost on a limit of Rs.1.00 lakh and above.
C) Interest rate as applicable to all other agricultural term loans wherever activity is
not specified.
D) Repayable in 60 monthly instalments (coinciding with daily loan instalments if dairy
loan exists).
E) Collateral Security as applicable to agriculture advances.
F) Service Charges as applicable to Agriculture advances.
G) Can be financed under Kisan Kalpaturu scheme.
H) All the above.
Cir No.348 Ref. No.53/24 Date: 26.12.2017 Sub: Pradhan Mantri Awas Yojana
27 Title of the Campaign (from 01.01.2018 to 31.03.2018) proposed for

promoting housing loans with specific reference to utilization of subsidy
available under PMAY is;
A) PMAY - APNA GHAR, apna sapna
B) PMAY - MERA GHAR, mera sapna
C) PMAY - PYARA GHAR, pyara sapna
D) PMAY - SUNDAR GHAR, sundar sapna
Cir NO.350, Ref No.05/06, Date: 26.12.2017 Sub: Credit Cards against Term
deposits.
28 Which of the following is true in respect of sanctioning credit card against our
term deposit.
A) No income proof or rating sheet shall be insisted upon.
B) Minimum limit of 0.10 lakh against a minimum deposit value of Rs.0.15 lakhs can be
sanctioned.
C) There shall always be a margin of not less than 25%.
D) Lien is to be marked against the term deposit in Bank books, no loan or advance
shall be granted against this deposit either as a primary or a collateral security.
E) The card should be surrendered or converted to a normal card fulfilling all the
required formalities on maturity or cancellation of the deposit.
F) All the above.
Cir No.355 Ref No.65/09, Date: 29.12.2017 Sub: Prevention of Money Laundering
(Maintenance of Records) Rules 2005 with regard to mandatory obtention of
Aadhaar Number and PAN for customer accounts. - Further Amendment.
29 "In pursuance of clause (a) and clause (c) of sub-rule (17) of rule 9 of the
Prevention of Money Laundering (Maintenance of Records) Rules 2005, the
112
Central Govt. here notified ___________________________, as the last date
of submission of the Aadhaar Number, and Permanent Account Number or
Form 60 by the clients to the reporting authority."
A) 31.03.2018.
B) Six months from the date of commencement of account based relationship by the
client.
C) (A) or (B) whichever is earlier.
D) (A) or (B) whichever is later.
E) 31.12.2017.
Cir No.358, Ref No.10/09 Date: 30.12.2017 Sub: Modification of charges on
Miscellaneous Export Bills and Direct Export Bills.
30 Commission to be collected on Export Bills against which Advance Payment

already received through our Bank shall be;
A) FC Bills up to USD 5000 or equivalent - Rs.250/-
B) FC Bills above USD 5000 or up to USD 10000 or equivalent - Rs.750/-
C) FC Bills above USD 10000 or equivalent - Rs.1000/-
D) All the above.
31 Commission to be collected on Export Bills against which Advance Payment
already received through another AD Bank shall be;
A) FC Bills up to USD 5000 or equivalent - Rs.500/-
B) FC Bills above USD 5000 or up to USD 10000 or equivalent - Rs.1000/-
C) FC Bills above USD 10000 or equivalent - Rs.1500/-
D) All the above.
KEY-DECEMBER-2017
1 G 6 C 11 C 16 C 21 D 26 H 31 D
2 B 7 B 12 D 17 A 22 A 27 B
3 D 8 D 13 G 18 C 23 D 28 F
4 D 9 D 14 C 19 H 24 C 29 D
5 E 10 F 15 C 20 G 25 E 30 D
113
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Hand Book

“Knowledge is a treasure, but practice is the Key to it “

(K.Uma Maheswara Rao)

What is the settlement formula for small loans up to Rs.1.00 lacs up to

What are the parameters to be considered for risk categorization of the

Know Your Circulars - Feb 2017

Cir.No.425/19/39 dt. 10.02.2017-Rate of interest ot Cashew Industry as Agro based Ind

20 a. Rs.500/- per account irrespective of the limit

09. a. Extension of repayment in three spells of moratorium

Cir.No.494/15/21dt.31.03.2017-Trade Easy software for Foreign–Exch.Products

Know Your Circulars - Apr 2017

Circular No.02 dated 01-04-2017

Processing Charges to be paid to Housing Loan Counselors at ---% subject to a

D 1% of the limit sanctioned Minimum Rs.1000 + ST and Maximum Rs.5000 +ST

03 Kisan Kalpataru aims at

Circular No.06 dated 06-04-2017

While establishing an account based relationship with a regulated entity, is

Bank should implement review of Risk categorisation of customers at a

Circular No.14 dated 11-04-2017 – Filing of Suits in NPA Accounts

Circular No. 25 dated 25-04-2017 Charges on Foreign Exchange Transactions

Cir.no.35/11/02dt.05.05.2017 -Empanelment of new Service Provider for e –

Cir.no. 43 ref. 48/01 dt. 12.05.2017 - Customization of menu for entering

Which of the following practices is not as per KYC norms.

What is the score awarded by BCSBI to our Bank

Know Your Circulars - June 2017

GSTIN having 15 digits consists of

Cir.no. 73 ref. 19/02 dt. 17.06.2017 - customization of Crop Insurance Module

Finance to Agriclinics and Agribusiness centres can be classified as

Cir.No. 76 ref. 48/5 dt. 22.06.2017 - Prudential guidelines on Capital Adequacy

Cir.78 ref. 19/4 dt. 23.06.2017 - Interest subvention scheme.

Which of the following is correct in respect BHIM referral scheme.

For generation of E-cards at Branch, Branch can go in to

What is the GST to be recovered on Foreign currency purchase or sale in rupees

a) Five b) Two c) Three d) Four

03 Which of the following is correct.

04 Which of the following is incorrect?

1. Withdrawal form is similar to a cheque and can be endorsed further.

Cir No.105, Ref No.19/9 Dt.05.07.2017 – Kisan Samraksha Scheme

07 Following are waived to augment Agricultural Investment Credit under “Kisan

1. Techno Economic Viability (TEV) study by the external agencies;

08 Which of the following is correct in respect of penalty on premature closure of Term

1. Deposits of individual deposits (including joint accounts) up to Rs.5

09 Which of the following is correct in respect of penalty on premature closure of Term

1. Cancellation for the purpose of settling death claims, of term deposits

11 Maximum amount of cash that can be withdrawn by a customer at non-home

12 Insolvency & Bankruptcy Code 2016 is a consolidated legislation providing for

a) Minimum of Rs.1 lakh at present

a) A copy of the invoice of purchase of Plant and Machinery

16 Initial Deposit and QAB to be maintained in AB SB Diamond Account is;

a. Rs.50,000 & Rs.3.00 lakh

a) Rs.50,000 & Rs.3.00 lakh

a) Rs.50,000 & Rs.1.00 lakh

19 Life and Accidental Insurance Coverage available to customer of AB SB Platinum

a) Rs.1.00 lakh and Rs.3.00 lakh

20 Initial deposit and QAB to be maintained in AB Emerald Current Deposit

a) Rs.2.00 lakh and Rs.3.00 lakh

21 The "Policy on Industry/Sector Wise exposure ceilings" as approved by the Board is

22 Which of the following is true in respect of obtaining additional documents/forms for

a) Customer should submit a letter/separate forms to avail add-on

25 An incentive of Rs.______ will be paid to HLCs/BCs/Recovery Agents and Retired

Know Your Circulars - Aug 2017

HO Cir No.150 Ref No.52/12 dated 02.08.2017 Sub: Memorandum of

a) Loans up to Rs.1 lakh - Rs.500 per loan