Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q4: Consider the following statements:

Assertion (A) - Penal interest is levied on a currency chest for delayed reporting of transactions.
Reason (R) - The calculation for penal interest is on a T+0 basis, meaning it is levied for transactions not reported to the Issue Office on the same business day within the prescribed time limit.
A
Both A and R are true, and R explains A
B
Both A and R are true, but R does not explain A
C
A is true, but R is false
D
A is false, but R is true
✅ Correct Answer: A
Penal interest is levied for delays in Currency Chest Reporting.
The reason (R) correctly explains the basis for this levy, stating it is calculated on a T+0 basis, penalizing transactions not reported on the same business day to the Issue Office.