CAIIB 2020 Retail Banking Mock Tests Set 12

What precautions must be taken while using Internet Banking?

I) Visit Internet banking site directly. Avoid accessing the site through a link from another site or an e-mail and verify the domain name displayed to avoid spoof website.

II) Log out of Internet banking when the session is complete. Use the ‘Log Out’ button to log out so that the session closes. Do not just close the window to log off.

III) Log off your PC when not in use.

IV) Avoid using Internet Banking on unsecured networks like airports, railway stations, cyber-cafes or any other public network/wi-fi, etc.


Options are :

  • Only I,IV
  • Only II,III
  • Only III
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

CAIIB 2020 Retail Banking Mock Tests Set 13

Which of the following measures must be taken to keep the password strong?

I) Use at least six or more characters. More the characters in a password, the more secure it is.

II) Utilize a combination of letters and numbers to make it more difficult for a person/software programme to guess your password.

III) Use special characters (@,#,%,$,etc.) to make the password more difficult to crack.

IV) Use a combination of upper-  and lower- case letters which helps to create a more secure password.


Options are :

  • Only I,II,IV
  • Only I,II
  • Only II,III
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

Which of the following is the strongest password among the others?


Options are :

Answer :[email protected]

What are the precautions that customer needs to remember for preventing unauthorised transactions in their account?

I) Change your PIN/Password at regular intervals – at least every 3 to 6 months. Do not repeat your previous passwords.

II) Memorize your PIN, password and other security information and destroy the written communication, if any, received by you.

III) Take reasonable steps to keep your card safe in your personal custody and your PIN, password and other security information secret at all times.

IV) Use different PINs or password for different cards or devices.


Options are :

  • Only II,III
  • Only III,IV
  • Only I,IV
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

CAIIB 2020 Bank Financial Management Mock Tests Set 1

A customer is entitled for zero liability where the unauthorized transaction occurs in which of the following events:


Options are :

  • Contributory fraud/ negligence/ deficiency on customer’s part.
  • Third party breach where the deficiency lies elsewhere in the system and customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorized transaction.
  • Both A and B
  • Neither A nor B.

Answer :Both A and B

Which of the following are main aims of BCSBI -

I) To plan, evolve, prepare, develop, promote and publish voluntary comprehensive Codes and Standards for banks, for providing for fair treatment to their customers.

II) To function as an independent and autonomous watch dog to monitor and to ensure that the banking Codes and Standards voluntarily adopted by banks are adhered to, in true spirit by banks in delivering the services, as promised, to their customers.

III) To conduct and undertake research of the Codes and Standards currently in vogue in and outside India.

IV) To enter into covenants with banks on observance of the codes and standards and for that purpose to train employees of such banks about the Banking Codes.


Options are :

  • Only I,II,III
  • Only II,III,IV
  • Only II,IV
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

Code of Bank’s Commitment is applicable to which of the following products and services?

I)Payment services such as pension, payment orders, remittances by way of Demand Drafts, wire transfers and all electronic transaction e.g. RTGS, NEFT

II)Banking services related to Government transactions

III) Demat accounts, equity, Government bonds

IV) Indian currency notes/coins exchange facility


Options are :

  • Only I,II,IV
  • Only II,IV
  • Only I,II,III
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

CAIIB 2020 Bank Financial Management Mock Tests Set 10

As per BCSBI’s Right to Transparency, Fair and Honest Dealing, the member banks will help customer to understand how former’s financial products and services work by-


Options are :

  • Giving the customers timely and adequate information about them and the necessary safeguards in any one or more of the following languages – Hindi, English or the appropriate local language.
  • Ensuring that bank’s advertising and promotional literature are clear and not misleading.
  • Ensuring that customers are given complete information about the member bank’s products and services, minimum balance requirements, the interest rates and service charges, besides the terms and conditions applicable to customers.
  • All of the above

Answer :All of the above

The methodology adopted by BCSBI for rating the member banks is to convert the data obtained during branch visits and customer responses in to numerical score assigning different weightage out of 100 to the parameters. How many parameters are used by BCSBI?


Options are :

  • 4
  • 5
  • 6
  • 7

Answer :5

If a written complaint is hand delivered, the bank has to  immediately provide an acknowledgement and a ________ will be separately sent by SMS on the registered mobile number.


Options are :

  • compensation amount chart
  • complaint reference number
  • resolution period
  • None of the above.

Answer :complaint reference number

CAIIB 2020 Bank Financial Management Mock Tests Set 11

What precautions must be taken while using banking services from mobile application or any other form of social media?

I) Do not leave your device unattended and logged into a mobile banking service.

II) Lock your device to prevent unauthorised use of your mobile banking service.

III) Notify us as soon as possible if your device is lost or stolen.

IV) Update your Mobile Banking App as and when a new version/upgrade is released.


Options are :

  • Only I,II,IV
  • Only I,II,III
  • Only II,III
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

In the retail liabilities and asset side, the software is developed mainly to capture which of the following types of information-

I) Static Information – Account Opening, Basic Loan Origination Data, etc.

II) Updated Information – Income Details at different frequencies, etc.

III) Transaction Information – Information form disbursement to final settlement in loan accounts and operation details in liability accounts.

IV) Analytics and Alerts – Both operational and strategic alerts to take action or to develop strategies for further action.


Options are :

  • Only I,II,III
  • Only II,III,IV
  • Only III,IV
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

Which of the following are advantages of Customer Analytics solution?

I)The analytics solution increases the bank’s relationship revenue through analytical insights that facilitate effective cross-sell and up-sell.

II) Facilitates Improved stickiness, targeted loyalty programs

III) enables profitable repositioning of offerings.

IV) enables banks to take customer centric decisions and enhance customer value.


Options are :

  • Only I,III
  • Only III,IV
  • Only II
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

CAIIB 2020 Bank Financial Management Mock Tests Set 12

The advantages of INFINET is/are-

I) Banking and Financial services independent of their location.

II) Extended banking business reach and hours as well as increased business volume and better fund utilisation, thereby facilitating reduced operational cost.

III) Increased security.

IV) Reduction/ elimination of payment risks.


Options are :

  • Only I,II,III
  • Only III,IV
  • Only II,IV
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

Key features of SFMS is/are -

I) Template Builder to support flexible definition of messages similar to SWIFT, like user-to-user and systems messages.

II) Flexible architecture that facilitates centralized or distributed deployment.

III) Directory services for maintenance of IFSC directory, network configuration.

IV) Secured messaging and routing based on store and forward principles governed by push technology.


Options are :

  • Only I,III
  • Only I,IV
  • Only II,IV
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

__________  is an emerging Internet-based computing technology where a large pool of systems are connected through private or public networks, to provide dynamically scalable infrastructure for applications, data and file storage.


Options are :

  • Cloud Computing.
  • Data Mining.
  • Data Drilling.
  • Artificial Intelligence.

Answer :Cloud Computing.

CAIIB 2020 Bank Financial Management Mock Tests Set 13

________ is an “on-demand software” service where the required software is provided to the end users as an application to run on their systems through Internet.


Options are :

  • Software as a Service (SaaS).
  • Platform as a Service (PaaS).
  • Infrastructure as a Service (IaaS).
  • None of the above

Answer :Software as a Service (SaaS).

_________ is a  pool of equipment including servers, storage systems, network, data centers, etc. provided as a service to the customers where providers can handle customers’ application workloads. The customer can host their own software on the cloud infrastructure.


Options are :

  • Software as a Service (SaaS).
  • Platform as a Service (PaaS).
  • Infrastructure as a Service (IaaS).
  • None of the above

Answer :Infrastructure as a Service (IaaS).

The technology models adopted by banks are:


Options are :

  • Fully outsourced model
  • Partially outsourced model
  • In house model
  • Anyone of the above.

Answer :Anyone of the above.

CAIIB 2020 Bank Financial Management Mock Tests Set 14

________ is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch. In its place an electronic image of the cheque is transmitted to the paying branch through the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc.


Options are :

  • Truncation
  • Imaging
  • Copying
  • Duplicating

Answer :Truncation

Which of the following are benefits of CTS to customers of banks?

I)Shorter clearing cycle

II)Superior verification and reconciliation process

III)No geographical restrictions as to jurisdiction

IV)Operational efficiency for banks and customers alike


Options are :

  • Only I,II
  • Only I,II,IV
  • Only I,II,III
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

In case of CTS, how would be the uniqueness of a physical cheque be captured and imparted to the cheque image?


Options are :

  • by use of Image Quality Assessment (IQA)
  • by use of Check Quality Assessment(CQA)
  • by use of Image Originality Assessment (IOA)
  • by use of MICR

Answer :by use of Image Quality Assessment (IQA)

CAIIB 2020 Bank Financial Management Mock Tests Set 2

With respect to CTS, What is the prescription relating to alterations / corrections on cheque forms?


Options are :

  • The prescription on prohibiting alterations / corrections on cheques has been introduced to curtail cheque related frauds.
  • For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), fresh cheque leaves should be used by customers.
  • Only A
  • Both A and B.

Answer :Both A and B.

Based on the geographical location of branches covered, there are _____ broad categories of ECS Schemes.


Options are :

  • 2
  • 3
  • 4
  • 5

Answer :3

Can ECS be used to transfer funds to Non Resident External (NRE) and Non Resident Ordinary (NRO) accounts?


Options are :

  • Yes. ECS can be used to transfer funds to NRE and NRO accounts in the country.
  • Yes. ECS can be used to transfer funds to NRE and NRO accounts in the country. This, however, is subject to the adherence to the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines.
  • No. ECS can’t be used to transfer funds to NRE and NRO accounts in the country.
  • No. ECS can’t be used to transfer funds to NRE and NRO accounts in the country. Pre- approval of RBI is required in such cases.

Answer :Yes. ECS can be used to transfer funds to NRE and NRO accounts in the country. This, however, is subject to the adherence to the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines.

CAIIB 2020 Bank Financial Management Mock Tests Set 3

How does the ECS Credit Scheme benefit User Institutions?

I) Savings on administrative machinery and costs of printing, dispatch and reconciliation of paper instruments that would have been used had beneficiaries not opted for ECS Credit.

II) Avoid chances of loss / theft of instruments in transit, likelihood of fraudulent encashment of paper instruments, etc. and subsequent correspondence / litigation.

III) Efficient payment mode ensuring that the beneficiaries get credit on a designated date.

IV) Cost effective.


Options are :

  • Only I,II,IV
  • Only I,II,III
  • Only I
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

Which of the following are the advantages of ECS Debit Scheme to the customers?

I) ECS Debit mandates will take care of automatic debit to customer accounts on the due dates without customers having to visit bank branches / collection centres of utility service providers etc.

II) Customers need not keep track of due date for payments.

III) The debits to customer accounts would be monitored by the ECS Users, and the customers alerted accordingly.

IV) Cost effective.


Options are :

  • Only I,II
  • Only I,II,III
  • Only I,II,IV
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

Which of the following  are the advantages of ECS Debit Scheme to the banking system?

I) Freedom from paper handling and the resultant disadvantages of handling, receiving and monitoring paper instruments presented in clearing.

II)Ease of processing and return for the destination bank branches. Destination bank branches can debit the customers’ accounts after matching the account number of the customer in their database and due verification of existence of valid mandate and its particulars. With core banking systems in place and straight-through-processing, this process can be completed with minimal manual intervention.

III) Smooth process of reconciliation for the sponsor banks.

IV) Cost effective.


Options are :

  • Only I,II,III
  • Only I,II,III
  • Only I,II,IV
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

CAIIB 2020 Bank Financial Management Mock Tests Set 4

RBI launched ______ app to help visually challenged identify currency notes.


Options are :

  • MANI
  • NETRA
  • MONI
  • M-FEEL

Answer :MANI

Which of the following statements are correct w.r.t. MANI application for note identification -

I) Ability to identify the denomination through audio notification in Hindi/English and non-sonic mode such as vibration (suitable for those with vision and hearing impairment).

II) After installation, the mobile application does not require internet and works in offline mode.

III) Ability to navigate the mobile application via voice controls for accessing the application features wherever the underlying device & operating system combination supports voice enabled controls.

IV) The application is charged one time fees of ?100 and can be downloaded from the Android Play Store and iOS App Store without any charges/payment.


Options are :

  • Only I,II,IV
  • Only I,II,III
  • Only I,II
  • All of the above viz. I,II,III,IV

Answer :Only I,II,III

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