CAIIB 2020 Retail Banking Mock Tests Set 16

_____________  are those that occur when details are illegally taken to create a counterfeit credit card.


Options are :

  • Card-not-present (CNP) fraud
  • Counterfeit and skimming fraud
  • Lost and stolen card fraud
  • False application fraud

Answer :Counterfeit and skimming fraud

CAIIB 2020 Retail Banking Mock Tests Set 17

In case of ATMs PIN Stands for -


Options are :

  • Personal Identification Number
  • Private Identification Number
  • Personal Information Number
  • Private Information Number

Answer :Personal Identification Number

Will the card-holder be liable for transactions undertaken with the card he/ she has reported as lost?


Options are :

  • No, provided he/she has not acted fraudulently.
  • Yes, since the card is in possession of card-holder.
  • Yes, till the card is blocked customer is liable.
  • No, provided the card is in customer’s capacity.

Answer :No, provided he/she has not acted fraudulently.

What is the time-limit for the card-issuing banks to re-credit the customer's account for a failed ATM transaction?


Options are :

  • 5 working days
  • 5 days
  • 7 working days
  • 7 days

Answer :7 working days

CAIIB 2020 Bank Financial Management Mock Tests Set 1

What will the bank pay as compensation for delay in re-crediting the card-holder's account following the reporting of a failed ATM transaction?


Options are :

  • Banks have to compensate the customer @ of ?. 100/- per day for delays beyond 7 working days.
  • Banks have to compensate the customer @ of ?. 100/- per day for delays beyond 5 working days.
  • Banks have to compensate the customer @ of ?. 150/- per day for delays beyond 7 working days.
  • Banks have to compensate the customer @ of ?. 150/- per day for delays beyond 5 working days.

Answer :Banks have to compensate the customer @ of ?. 100/- per day for delays beyond 7 working days.

What action can the customer take if his / her complaint is not addressed by his/her bank within the stipulated time?


Options are :

  • Customer can file the complaint in DRT
  • Customer can write to finance ministry.
  • Customer can approach the regional office of bank under whose jurisdiction the card-issuing branch falls.
  • Customer can approach the Banking Ombudsman under whose jurisdiction the card-issuing branch falls.

Answer :Customer can approach the Banking Ombudsman under whose jurisdiction the card-issuing branch falls.

______  are issued by banks/other entities approved by RBI. A credit limit is sanctioned to the card holder is in the form of a revolving line of credit (similar to a loan sanctioned by the issuer) and may or may not be linked to a bank account.


Options are :

  • debit cards.
  • credit cards.
  • prepaid cards.
  • All of the above

Answer :credit cards.

CAIIB 2020 Bank Financial Management Mock Tests Set 10

_________  are issued by the banks/non-banks against the value paid in advance by the cardholder and stored in such cards which can be issued as smart cards or chip cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers, etc.


Options are :

  • debit cards.
  • credit cards.
  • prepaid cards.
  • All of the above

Answer :prepaid cards.

In the case of a credit card, which of the following are the parties to the ‘complete cycle of transaction’?

I) The Customer (cardholder)

II) The Retailer

III) The Acquiring bank

IV) The Clearing Network

V) The Issuing bank


Options are :

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

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

In the Credit card cycle, who issues the Credit to the customer?


Options are :

  • The Retailer
  • The Acquiring bank
  • The Clearing Network
  • The Issuing bank

Answer :The Issuing bank

CAIIB 2020 Bank Financial Management Mock Tests Set 11

The NEFT system also facilitates one-way cross-border transfer of funds from India to _______. A remitter can transfer funds from any of the NEFT-enabled branches in India to this country, irrespective of whether the beneficiary in other country maintains an account with a bank branch in that country or not.


Options are :

  • Bangladesh
  • Maldives
  • Nepal
  • Bhutan

Answer :Nepal

IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. This is an 11-digit code with the first 4 alpha characters representing the bank, and the last 6 characters representing the branch. The 5th character is 0 (zero). IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.  You receive a NEFT in your parking account. While inspecting you found the originating IFSC Code as -  BDBL0001333 The IFSC Code pertains to ?


Options are :

  • Bank of Baroda
  • Bandhan Bank
  • Deutsche Bank
  • Bombay Deccan Urban Bank Ltd.

Answer :Bandhan Bank

When can the beneficiary of NEFT expect to get the credit to his bank account?


Options are :

  • The beneficiary can expect to get credit for the NEFT transactions within two business hours from the batch in which the transaction was settled.
  • The beneficiary can expect to get credit for the NEFT transactions within 24 Hours hours from the batch in which the transaction was settled.
  • The beneficiary can expect to get credit for the NEFT transactions within 48 hours from the batch in which the transaction was settled.
  • The beneficiary can expect to get credit for the NEFT transactions within one business hours from the batch in which the transaction was settled.

Answer :The beneficiary can expect to get credit for the NEFT transactions within two business hours from the batch in which the transaction was settled.

CAIIB 2020 Bank Financial Management Mock Tests Set 12

Which of the following are the pre-requisites for putting through a funds transfer transaction using NEFT –

I) Originating bank branch should be part of the NEFT network

II) Destination bank branch should be part of the NEFT network

III) Beneficiary details such as beneficiary name, account number and account type, name and IFSC of the beneficiary bank branch should be available with the remitter

IV) It should be done between  8 AM and 7 PM.


Options are :

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

Answer :Only I,II,III

If the NEFT transaction is not credited or returned within the stipulated time then the banks are liable to pay penal interest to the affected customers. Banks are required to pay penal interest at the current RBI LAF Repo Rate _________ for the period of delay / till the date of refund as the case may be to the affected customers’ account without waiting for a specific claim to be lodged by the customer in this regard.


Options are :

  • Plus 1%
  • Plus 2%
  • Plus 1.5%
  • Plus 2.5%

Answer :Plus 2%

Which of the following are most traditional forms of making remittances used by the banks for making local payments and for remitting funds outstation in yesteryears:

I) Banker’s Cheque        II) Demand Draft                III) NEFT        IV) RTGS


Options are :

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

Answer :Only I,II

CAIIB 2020 Bank Financial Management Mock Tests Set 13

Real Time Gross Settlement (RTGS) system, National Electronic Funds Transfer (NEFT), National Electronic Clearing Service (NECS) are a type of -


Options are :

  • Centralised Payment Systems (CPC)
  • Decentralised Payment Systems (DPS)
  • Overseas Payment Systems (OPS)
  • Hybrid Payment Systems(HPS)

Answer :Centralised Payment Systems (CPC)

Clearing Houses at MICR centres (including Cheque Truncation System centres) and Electronic Clearing Services (ECS) open to all eligible licensed banks are a type of -


Options are :

  • Centralised Payment Systems (CPC)
  • Decentralised Payment Systems (DPS)
  • Overseas Payment Systems (OPS)
  • Hybrid Payment Systems(HPS)

Answer :Decentralised Payment Systems (DPS)

Which of the following are objectives of NEFT - 

I) To establish an Electronic Funds Transfer System to facilitate an efficient, secure, economical, reliable and expeditious system of funds transfer and clearing in the banking sector throughout India.

II) To relieve the stress on the existing paper based funds transfer and clearing system.

III) To reduce the technological load on banking systems

IV) To minimize the online frauds.


Options are :

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

Answer :Only I,II

CAIIB 2020 Bank Financial Management Mock Tests Set 14

Such individuals who do not have a bank account (walk-in-customers) can also deposit cash at the NEFT-enabled branches with instructions to transfer funds using NEFT. However, such cash remittances will be restricted to a maximum of less than _______ per transaction.


Options are :

  • ?10,000
  • ?25,000
  • ?50,000
  • ?1,00,000

Answer :?50,000

NEFT facilitates originators or remitters to initiate funds transfer transactions -


Options are :

  • Only from their bank account.
  • even without having a bank account.
  • Both A and B
  • None of the above

Answer :Both A and B

Maximum amount per transaction is limited to _____  for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.


Options are :

  • below ?50,000
  • below ?10,000
  • below ?20,000
  • below ?1,00,000

Answer :below ?50,000

CAIIB 2020 Bank Financial Management Mock Tests Set 2

The transactions are settled in _________ timings and hence the beneficiary can expect to get credit for the NEFT transactions within two business hours from the batch in which the transaction was settled.


Options are :

  • B
  • B + 1
  • B + 2
  • B + 3

Answer :B + 2

If the NEFT transaction is not credited or returned within the stipulated time then the banks are liable to pay penal interest to the affected customers. Banks are required to pay penal interest at the current __________  for the period of delay/till the date of refund as the case may be to the affected customers’ account without waiting for a specific claim to be lodged by the customer in this regard.


Options are :

  • RBI LAF Repo Rate plus two percent
  • RBI LAF Repo Rate plus one percent
  • RBI LAF Repo Rate
  • RBI LAF Repo Rate minus two percent

Answer :RBI LAF Repo Rate plus two percent

Which of the following are the parties to a funds transfer under NEFT System?

I)The Sending Bank.

II)The Sending Service Centre.

III)The NEFT Clearing Centre.

IV)The Receiving Service Centre.

V)The Beneficiary Branch.


Options are :

  • Only II,III,IV,V
  • Only I,II,V
  • Only I,III,IV,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 3

Who manages the NEFT Clearing Centre?


Options are :

  • National Clearing Cell,RBI,Mumbai
  • National Clearing Cell,NPCI,Mumbai
  • National Clearing Cell,RBI, New Delhi
  • National Clearing Cell,NPCI,New Delhi

Answer :National Clearing Cell,RBI,Mumbai

NEFT can be used to transfer funds from or to NRE and NRO accounts in the country. This, however, is subject to the adherence of the provisions of the _________ and _____.


Options are :

  • FEMA, Wire Transfer Guidelines
  • FEMA, RBI Guidelines
  • Payments Settlement Act, RBI Guidelines
  • FEMA Act, Money Laundering Act

Answer :FEMA, Wire Transfer Guidelines

Every participating bank maintains NEFT Clearing Centre in Mumbai, a settlement account for settlement of payment obligations arising under the funds transfer executed under the NEFT system. The settlement so arrived at through multilateral netting is final and irrevocable, in terms of section 23 of the ____________ as soon as the same is determined in terms of the procedures notified by RBI.


Options are :

  • Payment and Settlement Systems Act, 2007
  • Foreign Exchange Management Act, 2000
  • Money Laundering Act
  • Wire Transfer Guidelines

Answer :Payment and Settlement Systems Act, 2007

CAIIB 2020 Bank Financial Management Mock Tests Set 4

Which of the following are Right and Obligations of Customers?


Options are :

  • The customer shall be responsible for the accuracy of the particulars given in the payment instruction.
  • The customer shall be bound by any payment instruction executed by the bank if the bank had executed the payment instruction in good faith
  • The customer shall ensure availability of funds in his account while issuing the payment instruction to his bank.
  • All of the above.

Answer :All of the above.

With reference to RTGS, ‘Real Time’ means -


Options are :

  • crediting the amount at the same moment
  • debiting the amount at the time of instruction received
  • processing of instructions at the time they are received.
  • none of the above

Answer :processing of instructions at the time they are received.

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