Banking Awareness October 2025 to February 2026: 36 Revision Flashcards

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Rapid revision
Test one fact at a time:open a card, recall the direct answer, then practise it in MCQ format.
How is the "Video based Customer Identification Process (V-CIP)" treated for the purpose of Customer Due Diligence (CDD)?
Direct Answer
It is treated on par with face-to-face Customer Identification Process (CIP).
Under the Reserve Bank of India (Treatment of Wilful Defaulters and Large Defaulters) Directions, a "large defaulter" must have an outstanding amount of at least ₹1 crore.
Direct Answer
The account is classified as doubtful or loss.
According to the Reserve Bank of India (Treatment of Wilful Defaulters and Large Defaulters) Directions,
what is the minimum outstanding amount for a "wilful defaulter"?
Direct Answer
₹25 lakh and above
Under the Reserve Bank of India (Treatment of Wilful Defaulters and Large Defaulters) Directions, the bank must classify a borrower as a wilful defaulter within what timeframe?
Direct Answer
Within six months of the account being classified as NPA.
What is the interest rate applicable to a Term Deposit that matures and proceeds are left unclaimed with the bank?
Direct Answer
It attracts the rate of interest applicable to savings accounts or the contracted rate of interest on the matured deposit, whichever is lower.
Since September 15, 2018, what specific detail must a bank incorporate on the face of a Demand Draft, Pay Order, or Banker's Cheque?
Direct Answer
The name of the purchaser.
In the context of customers unable to provide PAN or Form No. 60, "temporary ceasing of operations" in relation to an account is defined as:
Direct Answer
The temporary suspension of all transactions, except for allowing credits in asset accounts (such as loan accounts).
When a bank opens a Non-Resident Ordinary (NRO) account for a foreign student pending address verification,
what is the cap on the aggregate withdrawal from such an account during the 30-day period?
Direct Answer
₹50,000
For the purpose of CRR maintenance, the relevant NDTL figure is taken from which specific reporting day?
Direct Answer
The Reporting Friday of the second preceding fortnight.
Identify the INCORRECT statement regarding the daily maintenance of CRR:
Direct Answer
Banks can maintain 100% of their CRR requirement in the form of "Cash on Hand" (vault cash).

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When valuing Gold for the purpose of Statutory Liquidity Ratio (SLR) compliance, which pricing methodology must banks strictly follow?
Direct Answer
Price not exceeding the current market price (Lower of Cost or Market Value).
Which specific return/form must Scheduled Commercial Banks submit to the RBI, to report their CRR maintenance status on a fortnightly basis?
Direct Answer
Form A
In the context of Monetary Policy, if the RBI decides to increase the Cash Reserve Ratio (CRR),
what is the immediate expected impact on the banking system?
Direct Answer
Absorption of excess liquidity from the banking system.
An 'Unbanked Rural Centre' (URC) is defined as a rural centre that lacks a CBS-enabled 'Banking Outlet', and falls under which specific population tier classifications?
Direct Answer
Tier 5 and 6 only
For the purpose of disclosure under Accounting Standard 17 (AS-17), the 'Digital Banking Segment' is classified as a sub-segment of which existing segment?
Direct Answer
Retail Banking Segment
According to the population-group wise classification based on the 2011 Census, a 'Rural Centre' is defined as a centre with a population of:
Direct Answer
Up to 9,999
What requirement is specified for all Credit Institutions (CIs) regarding their membership with Credit Information Companies (CICs)?
Direct Answer
CIs must become members of all the CICs registered with the RBI.
In the event of a cancellation of a Credit Institution's (CI) Certificate of Registration (CoR) or licence, what action are Credit Information Companies (CICs) required to take?
Direct Answer
Insert a suitable disclaimer in the borrowers' records to reflect the non-updatability of the record due to the CI's closure.
Credit Institutions (CIs) shall rectify the rejected data and upload the same with the Credit Information Companies (CICs) within …… of receipt of such rejection report.
Direct Answer
seven days
How frequently are Credit Information Companies (CICs) required to undertake periodic exercises or checks to identify identifier inconsistencies in their databases?
Direct Answer
At least once in a quarter
To facilitate understanding and interpretation, credit scores shall be calibrated from …… by all Credit Information Companies (CICs).
Direct Answer
300 to 900
How frequently are individuals entitled to receive one Free Full Credit Report (FFCR), including a credit score, from Credit Information Companies (CICs)?
Direct Answer
Once at any time during a year (January – December)
When a Credit Information Company (CIC) shares credit information of an individual with a third-party entity based on consent, where must that information be processed and stored?
Direct Answer
In India
Who is responsible for appointing the CISA certified auditor to conduct the Information System (IS) audit of entities that receive credit information based on individual consent?
Direct Answer
The entity itself (the one receiving the information)

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When a Credit Institution (CI) corrects erroneous data, who is responsible for updating that data in the Credit Information Company's (CIC) database?
Direct Answer
The CI, which must rectify the data at the source.
When are Credit Information Companies (CICs) required to send alerts via SMS or email to customers?
Direct Answer
When the customer's Credit Information Report (CIR) is accessed by a Specified User (SU).
When are Credit Institutions (CIs) required to send alerts via SMS or email to their customers?
Direct Answer
When submitting information to CICs regarding a default or days past due (DPD) in existing credit facilities.
What action must a Credit Institution (CI) take if it rejects a customer's request for data correction?
Direct Answer
Inform the customer of the reasons for the rejection.
What is the compensation amount a complainant is entitled to if their complaint regarding credit information is not resolved within thirty calendar days?
Direct Answer
₹100 per calendar day
How are "Politically Exposed Persons" (PEPs) defined for the purpose of the RBI (Commercial Banks – KYC) Directions, 2025?
Direct Answer
Individuals who are or have been entrusted with prominent public functions by a foreign country.
When a bank opens a Non-Resident Ordinary (NRO) account for a foreign student pending address verification,
what is the cap on the aggregate withdrawal from such an account during the 30-day period?
Direct Answer
₹50,000
How is the "Video based Customer Identification Process (V-CIP)" treated for the purpose of Customer Due Diligence (CDD)?
Direct Answer
It is treated on par with face-to-face Customer Identification Process (CIP).
How frequently must a bank review its internal "Money Laundering (ML) and Terrorist Financing (TF) Risk Assessment"?
Direct Answer
At least annually
Which specific function regarding KYC norms is a bank prohibited from outsourcing?
Direct Answer
The decision-making functions of determining compliance with KYC norms
When rejecting an application for onboarding or periodic updation of KYC, what specific procedural requirement must the concerned officer fulfill?
Direct Answer
They must duly record the reason(s) for rejection.
Which specific return/form must Scheduled Commercial Banks submit to the RBI, to report their CRR maintenance status on a fortnightly basis?
Direct Answer
Form A