CAIIB 2020 Retail Banking Mock Tests Set 9

Specialised __________ are opened by almost all the Banks exclusively for retail customers to meet all their retail banking requirements.


Options are :

  • MSME branches
  • NRI branches
  • Personalised Banking Branches
  • Corporate branches

Answer :Personalised Banking Branches

In almost all the private sector banks as well as in some public sector banks, only the formalities for opening the accounts are completed at the branch level and opening of accounts, issue of Pass Book/Cheque Book, Debit Card, PIN, etc., are carried out through a centralised bank-office mechanism. Why?


Options are :

  • This is aimed at reduction of banks expenses and work load on office staff.
  • This is aimed to achieve standardisation as well as speedier compliance of bank’s requirements and customer expectations.
  • This is aimed to achieve reduction in customer complaints after account opening with respect to issue of Pass Book/Cheque Book, Debit Card, PIN, etc.
  • None of the above.

Answer :This is aimed to achieve standardisation as well as speedier compliance of bank’s requirements and customer expectations.

______ are intended to offer the facility of Cash Withdrawals, Cash Remittances, Balance Enquiry etc., at the branch premises itself.


Options are :

  • On Site ATMs
  • Off Site ATMs.
  • Long Distance ATMs
  • Short Distance ATMs

Answer :On Site ATMs

With respect to transactions at any other bank’s ATMs at Non-Metro locations, banks must offer the savings bank account holders a minimum of _____  free transactions (including both financial and non-financial transactions) in a month at other bank ATMs.


Options are :

  • 3
  • 5
  • 7
  • 10

Answer :5

CAIIB 2020 Bank Financial Management Mock Tests Set 1

RBI has clarified that non-cash withdrawal transactions from ATMS such as _______ cannot be part of Free Transactions.


Options are :

  • Balance Enquiry
  • Mini Statement
  • PIN change
  • all of the above

Answer :all of the above

Banks have to pay compensation of ________ per day for delays in re-crediting the amount beyond T+5 working days from the date of receipt of complaint for failed ATM transactions.


Options are :

  • ?10
  • ?50
  • ?100
  • ?125

Answer :?100

What steps can bank take to minimize the issue of frequent breakdowns in case of ATMs?

I) Periodic visits by ATM channel managers/vendors to ATMs.

II) Monitoring of uptime of ATMs by vendors as well as by the banks on a real time basis.

III) Online system enabling immediate notification to vendors about ‘down’ ATMs for restoration on a priority basis.

IV) Top Management’s oversight on Down Time reports.


Options are :

  • Only I,II
  • Only III,IV
  • Only I,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

What are the measures that have been initiated to strengthen the security in ATM transactions-

I) Arrangements with local police authorities for regular beats in case of ATMs located on sensitive areas.

II) Security screen on the Machine requiring the customer to confirm the digits entered.

III) Reduction of per screen transaction time.

IV) Logging out of a customer in case of even a single invalid pin.


Options are :

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

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

There are two basic types of PoS terminals; _______ that are used by high volume merchants, such as department stores, and ________ that automatically dial a special telephone number, often a toll-free number, to obtain authorization.


Options are :

  • electronic cash registers, dial-up terminals
  • electronic cash registers ,dial-up terminals
  • Manual cash Registers, Automatic Cash Registers
  • Automatic Cash Registers, Manual cash Registers

Answer :electronic cash registers, dial-up terminals

Which of the following are the benefits and uses of Mobile Banking for banks?

I) Easy and most acceptable delivery channel.

II) Cost effective solution as compared to ATMs.

III) It is not a benefit to banks.

IV) Lesser transaction costs as compared to other channels.


Options are :

  • Only I,III,IV
  • Only I,II,III
  • Only III,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 11

In IMPS, A transaction limit of _______  per customer per day has been mandated.


Options are :

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

Answer :?50,000

Banks providing mobile banking services have to comply with which of the following security principles and practices for the authentication of mobile banking transactions-

I) All mobile banking transactions involving debit to the account shall be permitted only by validation through a two factor authentication.

II) One of the factors of authentication shall be MPIN or any higher standard.

III) Where MPIN is used, end to end encryption of the MPIN is desirable.

IV) The MPIN shall be stored in a secure environment.


Options are :

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

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

______ offers an instant, 24 × 7, interbank electronic fund transfer service through mobile phones.


Options are :

  • RTGS
  • NEFT
  • ECS
  • IMPS

Answer :IMPS

CAIIB 2020 Bank Financial Management Mock Tests Set 12

IMPS offers which one of the funds transfer facility:

I)Using Mobile-Money-ID (MMID) and Mobile number

II)Using IFS Code and account number

III)Using Aadhaar Number (Aadhaar Based Remittance Service – ABRS)

IV)Using PAN Number


Options are :

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

Answer :Only I,II,III

In _________ , a remitter can initiate IMPS transaction using the beneficiary’s Aadhaar number, which acts as a financial address & which will be linked to the beneficiary’s account number.


Options are :

  • ABRS
  • UPI
  • NACH
  • MMID

Answer :ABRS

UPI is a unique mobile application based payment solution.It facilitates virtual address as a payment identifier for sending and collecting money and works on ___.


Options are :

  • single click 2-factor authentication.
  • single click encryption.
  • single click 1-factor authentication
  • single click crypto-authentication

Answer :single click 2-factor authentication.

CAIIB 2020 Bank Financial Management Mock Tests Set 13

Which of the following are UPI participants-

I) Payer Payment Service Provider (PSP)       

II) Payee Payment Service Provider (PSP)

III) Remitter Bank                                         

IV) Beneficiary bank


Options are :

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

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

Which of the following are features of UPI?

I) UPI allows the use of Aadhaar number , mobile number, with ‘pay-by-date’ to allow payment requests that can be ‘snoozed’ and paid later.

II) UPI ensures 1-click 2-factor authentication.

III) The virtual addresses do not allow security to be compromised if the merchant’s database is hacked, as their data base will only have list of virtual addresses.

IV) UPI permits immediate funds transfer, 24 × 7 without providing banking details such as beneficiary’s account number, IFSC Code, card details, etc. There are no cut-off timings like those in traditional Payment systems, e.g., RTGS.


Options are :

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

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

BHIM Stands for -


Options are :

  • Bharat Intraday Money
  • Bharat Interday Money
  • Bharat Interface for Money
  • Bharat InterApp for Money

Answer :Bharat Interface for Money

CAIIB 2020 Bank Financial Management Mock Tests Set 14

BHIM users can send money by using which one of the following details of the beneficiary-


Options are :

  • VPA (Registered on UPI)
  • Mobile No. (Registered on UPI)
  • Aadhaar Number
  • all of the above

Answer :all of the above

[BHIM App Case Study] Mr. D’Souza living in Panaji Goa is holding his savings bank account in Bank of Goa.He also linked the Aadhar card with his savings account. Later, He opened another account with Bank of Panaji. Since his adhar card was already linked to Bank of Goa account he didn’t linked the aadhar to this new account due to new supreme court of India ruling that -  Aadhaar cannot be made mandatory for openings of a bank account and for getting mobile connections. Since he gave the copy of his aadhar along with documents Bank of Panaji linked the Aadhar to his account at their own without receiving any application from Mr. D’Souza. One year later he moved to Kolkata and opened another account with Bank of Bangla. There also he submitted the aadhar and asked the bank officals to link it with his new account which the counter clerk forget to do so. Now, Mr. Chakraborty, a friend of Mr. D’Souza sent him money via BHIM. To which account will the money get credited?


Options are :

  • Account with Bank of Goa
  • Account with Bank of Panaji
  • Account with Bank of Bangla
  • Money will be returned back to Mr. Chakraborty

Answer :Account with Bank of Panaji

USSD Stands for -


Options are :

  • Unstructured Supplementary Service Data
  • Unstructured Simplified Service Device
  • Unstructured Simplified Service Data
  • Unstructured Supplementary Service Device

Answer :Unstructured Supplementary Service Data

CAIIB 2020 Bank Financial Management Mock Tests Set 2

What are the basic requirements to avail *99# service?

I) KYC (Know Your Customer) compliant bank account

II) Mobile no. should be linked with bank a/c

III) Customer should register for USSD/ Mobile Banking

IV) Customer should get MMID (Mobile Money Identifier)

V) Customer should get MPIN (Mobile PIN)


Options are :

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

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

Which of the following are the features of *99# service-

I)Uses USSD platform as the access channel that works across all GSM handsets (smart phone or otherwise) making it reach the last mile user.

II)Supports menu-based applications that is easy to maneuver for the users.

III)Does not require data connectivity (works on signaling channel) that makes it high availability service.

IV)Round the clock availability (works even on holidays).


Options are :

  • Only I,IV
  • 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 services offered by the banks under Internet Banking-

I) View of balance in account.

II) View of last few transactions.

III) Generate statement of Account.

IV) Transfer of funds to accounts with other banks through NEFT mechanism/IMPS mechanism.


Options are :

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

A primary objective of ______ is to provide the entire organization with a complete, 360-degree view of the customer, no matter where the information resides or where the customer touch point occurred.


Options are :

  • Customer Psychological Management
  • Customer Relationship Management.
  • Customer Qualitative Management.
  • Basic Customer Relationship.

Answer :Customer Relationship Management.

In Retail Banking CRM, Stands for -


Options are :

  • Customer Retail Management
  • Customer Relationship Management.
  • Customer Relationship Manager.
  • Customer Retail Manager.

Answer :Customer Relationship Management.

The objectives of a good CRM are -

I) To build long-term profitable relationships with specific customers through a better understanding of the customers in order to develop close relationships.

II) Offer optimal products and services on a dynamic basis

III) achieve life-time value from customers.

IV) To increase the share of wallet of the customer with the banks’ services and increase the per-customer profitability of banks.


Options are :

  • Only I,II,III
  • Only I,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 4

Which of the following needs of banks shows the importance of  implementation of a CRM program - 

I) Need to increase operational efficiencies.

II) Need to derive more value from employees.

III) Increasing Competition in retail banking.

IV) Rising NPAs


Options are :

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

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

With respect to CRM, shifting the customers to electronic and remote channels like ATM is an example of -


Options are :

  • Customer Segregation
  • Operational bifurcation
  • Operational efficiencies.
  • Customer transformation.

Answer :Operational efficiencies.

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