CAIIB BRBL Previous Year Paper, Attempt Quiz & Download PDF

1. Which of the following statements regarding “Banking” under Section 5(b) of the Banking Regulation Act, 1949 are correct?
1) Banking means accepting for lending or investing, deposits of money from the public.
2) Deposits can be repayable only on demand and not otherwise.
3) Deposits must be withdrawable by cheque, draft, order, or otherwise.
4) Banker can accept deposits of money as well as other valuable securities.

a) 1 & 3 only
b) 1, 2 & 3 only
c) 1, 3 & 4 only
d) All of the above

2. Under Section 49A of BR Act, which of the following entities are authorized to accept deposits withdrawable by cheque?
a) Any banking company
b) Reserve Bank of India
c) State Bank of India
d) Any person or institution notified by the Central Government
e) Any NBFC registered under RBI

a) 1, 2 & 5 only
b) 1, 3, 4 & 5 only
c) 1, 2, 3 & 4 only
d) All of the above

3. Which of the following activities are prohibited under Section 8 of BR Act?
1) Direct or indirect trading in goods
2) Bartering of goods
3) Buying/selling of shares and securities
4) Dealing in growing crops or grass

a) 1 & 2 only
b) 1, 2 & 4 only
c) 1, 2, 3 & 4
d) None of the above

4. The additional paid-up capital requirement for a banking company having all its places of business in one State, none of which is in Mumbai or Kolkata is:

a) ₹1000 for each additional branch in the same district + ₹1500 for each branch elsewhere in the State
b) ₹25,000 for each additional branch in the same district + ₹10,000 for each branch elsewhere in the State
c) ₹10,000 for each additional branch in the same district + ₹25,000 for each branch elsewhere in the State
d) ₹20,000 for each additional branch in the same district + ₹25,000 for each branch elsewhere in the State
e) ₹100,000 for each additional branch in the same district + ₹125,000 for each branch elsewhere in the State

5. Which of the following correctly describes the relationship between authorised, subscribed and paid-up capital of a banking company?
1) Subscribed ≥50% of authorized
2) Paid-up ≥50% of subscribed
3) Paid-up ≥25% of authorized
4) Paid-up = 100% of subscribed

a) 1 & 2 only
b) 2 & 3 only
c) 1, 2 & 3 only
d) All 4 statements

6. Which of the following statements regarding the capital requirements applicable to a foreign banking company carrying on banking business in India are correct?
1) It must deposit with the Reserve Bank an amount calculated at 20% of the profit for each year in respect of business transacted through its branches in India.
2) The deposit may be maintained in cash, unencumbered approved securities, or both.
3) On cessation of banking business in India, the amount deposited is available for satisfaction of liabilities to creditors in India in accordance with law.
4) The Central Government may, on the recommendation of the Reserve Bank, exempt a foreign banking company from the relevant requirement subject to statutory conditions.

A) 1, 2 and 3 only
B) 2, 3 and 4 only
C) 1 and 4 only
D) 1, 2, 3 and 4

7. Which of the following is not correct regarding dealing with immovable property, so far, a bank is concerned?

a) Banks cannot deal with immovable property
b) Banks can acquire immovable property in realization of loan
c) Banks cannot acquire immovable property for their own use
d) Banks can purchase immovable property for sale thereof to earn profits
e) Both (c) and (d)

8. Which of the following statements is true regarding RBI’s power under BR Act?
1) RBI can call for information from banks.
2) RBI can conduct AFI annually.
3) RBI cannot debar an auditor from practice.
4) RBI can impose restrictions on banks based on inspection outcomes.

a) 1, 2 & 3 only
b) 1 & 2 only
c) 1, 2 & 4
d) 2, 3 & 4 only
e) All 4

9. A banking company incorporated in India has its principal place of business in Lucknow and two additional places of business in two other districts of Uttar Pradesh. None of its places of business is in Mumbai or Kolkata. Using the following statutory capital figures, what is the capital requirement?
Principal place of business: ₹1,00,000
Each additional place in the same district: ₹10,000
Each additional place elsewhere in the State: ₹25,000

A) ₹1,10,000
B) ₹1,50,000
C) ₹1,60,000
D) ₹1,35,000
E) None of the above

10. The BR Act does not apply to:
1) Primary Agricultural Credit Societies (PACS)
2) Co-operative societies formed by employees of nationalized banks
3) Co-operative societies with principal business in long-term agricultural finance

a) 1 & 3 only
b) 2 & 3 only
c) 1, 2 & 3
d) 1 only.

11. Composition of RBI’s Central Board includes:
1) Governor and up to 4 Deputy Governors
2) Directors nominated by the Central Government
3) Representatives of NABARD and SEBI
4) Four directors (one from each local board)

a) 1, 2 & 4 only
b) 1, 2 & 3 only
c) 1 & 4 only
d) All of the above

12. Case Study: XYZ Bank has the following financials: CRAR in FY 2022-23: 8.7%; CRAR in FY 2023-24: 9.2%; CRAR in FY 2024-25: 9.3%; Net NPA in FY 2024-25: 4.6%. The bank proposes a dividend payout ratio of 45%.
Under the RBI dividend payout matrix for commercial banks, which statement is correct?

A) The bank cannot declare a 45% payout; since CRAR is at least 9% only in the current year and Net NPA is between 3% and less than 5%, the applicable ceiling is 5%.
B) The bank can declare 45% because current-year CRAR exceeds 9%.
C) The bank can declare 45% because Net NPA is below 5%.
D) The bank is completely prohibited from declaring any dividend.

13. The dividend must be paid from:

a) Current year’s net profit only
b) Accumulated Reserves
c) Any revaluation reserve
d) Both (a) and (b)
e) Either (a) or (b)

14. Consider the following statements regarding voting rights and major shareholding in a banking company:
(i) No shareholder can exercise voting rights on a poll in excess of 26% of the total voting rights of all shareholders.
(ii) Acquisition of 5% or more of the paid-up share capital or voting rights constitutes major shareholding and requires prior RBI approval under the applicable framework.
(iii) A shareholder validly holding 15% of the voting equity may exercise up to 15% voting rights, subject to compliance with applicable approval and ownership requirements.

Which are correct?

A) Only (i)
B) (i) and (ii) only
C) (ii) and (iii) only
D) (i), (ii) and (iii)

15. Identify the correct statements:
(i) Every foreign bank must transfer minimum 20% of its annual profit to reserve fund.
(ii) The transfer of profit to reserve fund by Indian bank must be done before declaring dividend.
(iii) Any appropriation from reserve fund must be reported to RBI within 21 days.
(iv) Transfer to reserve fund is optional to Indian bank if CRAR is above 9%.

a) (i), (ii), (iii) only
b) (ii) and (iii) only
c) (ii) and (iv) only
d) All (i) to (iv)

16. Which is correct?
(i) Voluntary amalgamation requires approval by 1/3rd shareholders in value.
(ii) GOI may order amalgamation before consulting RBI.
(iii) RBI may apply for moratorium on a bank for maximum 12 months.

a) (i) and (ii) only
b) (ii) and (iii) only
c) (i), (ii), (iii)
d) (i) only
e) None of the above

17. Mr. Mehta validly holds 24% of the voting equity shares of a banking company after obtaining all approvals required for such major shareholding. Solely applying the statutory ceiling on voting rights, what is the maximum voting right he may exercise?

A) 10%
B) 15%
C) 24%
D) 26%
E) No limit

18. What is the maximum tenure for Mr. Rajesh Mehta an MD&CEO in a Sunrise bank as per RBI guidelines?

A) 10 years
B) 12 years
C) 13 years
D) 15 years
E) No limit

19. If Mr. Mehta steps down after 15 years, when can he be re- appointed as MD&CEO?

A) After obtaining a special RBI exemption
B) Immediately after his tenure ends
C) After a three-year cooling period
D) After a five-year cooling period

20. During the three-year cooling period, can Mr. Mehta take up any advisory role in Sunrise Bank or its group entities?

A) Yes, if he is not directly involved in daily operations
B) No, he cannot be associated in any capacity
C) Yes, but only as a consultant
D) Only if RBI grants a special exemption

21. If Mr. Mehta was also a promoter/major shareholder, how many years could he have served as MD&CEO without special RBI approval?

A) 10 years
B) 12 years
C) 15 years
D) Unlimited tenure

22. Which of the following statements regarding Regional Rural Banks (RRBs) are true?
(a) Section 3 authorises the State Government to establish an RRB by notification at the request of a Sponsor Bank.
(b) Of the issued capital of an RRB, 50% is subscribed by the Central Government, 15% by the concerned State Government and 35% by the Sponsor Bank, subject to the statutory provisos relating to capital raised from other sources.
(c) The Board of an RRB may make regulations after consultation only with the Sponsor Bank and with the previous sanction of the Central Government.
(d) A director’s seat becomes vacant if the director is absent without leave for exactly three consecutive Board meetings.

A) Only (a)
B) Only (b)
C) (b) and (c) only
D) (b), (c) and (d)
E) (c) and (d) only

23. Which of the following statements are true?
(a) A temporary branch for less than thirty days in a town, where a bank has an existing branch, does not require permission from Reserve Bank.
(b) A company whose banking licence is rejected can undertake business as a moneylender or undertake other business.
(c) The decision of Reserve Bank to revoke licence is final and no appeal lies from it.
(d) Banking companies are permitted to give brokerage up to two-and-half per cent of the paid- up value of shares.

(i) (a) and (b)
(ii) (a), (b) and (c)
(iii) (a), (b) and (d)
(iv) (a), (b), (c) and (d)

24. Which of the following statement(s) is/are false?
(a) Venture capital funds and stock-broking companies registered with SEBI, where regulated under the applicable SEBI framework, are not required to obtain a separate RBI certificate of registration merely as NBFCs for those regulated activities.
(b) Chit companies regulated under the Chit Funds Act, 1982 are required to register with RBI as NBFCs.
(c) Insurance companies holding valid registration from the insurance regulator are not required to register separately with RBI as NBFCs merely for insurance business.
(d) Housing Finance Companies are regulated by RBI and are required to comply with the RBI registration/regulatory framework applicable to HFCs.

A) (a), (b) and (c)
B) (a), (b) and (d)
C) Only (b)
D) (a), (c) and (d)
E) (b), (c) and (d)

25. Which of the following statement is/are true?
a) NBFCs are allowed to acquire government-issued securities, debentures, and bonds.
b) NBFCs can freely engage in the sale and construction of immovable property.
c) NBFCs can conduct insurance and leasing business.
d) Institutions primarily engaged in providing services are excluded from the NBFC definition.

i) (a), (b), and (c)
iii) (a), (c), and (d)
ii) (b), (c), and (d)
iv) (a), (b), and (d)

26. What is the minimum paid-up capital and reserves required for a Co-operative Bank to commence or continue banking operations?

a) ₹50,000
b) ₹80,000
c) ₹1 lakh
d) ₹5 lakh
e) ₹10 lakh

27. What is the minimum paid-up equity capital required by Munmun Financial Services for commencing the business of payments bank in India?

a) Rs. 50 crore
b) Rs. 100 crore
c) Rs. 150 crore
d) Rs. 200 crore
e) Rs. 500 crore

28. What was another name for the Narasimham Committee 1?

a) Committee on Financial Systems
b) Committee on Economic Policies
c) Committee on Taxation
d) Committee on Banking Reforms
e) Either (a) or (d)

29. Which channel was NOT mentioned as a way for foreign banks to operate in India

a) A subsidiary with up to 49% foreign investment
b) A wholly owned subsidiary of a foreign bank
c) As branches of foreign banks
d) All of the above

30. State which of the following statements are False?
(a) The NI Act has been amended a number of times the latest being in 2018 whereby Section 143 and 148A was introduced which deal primarily with providing interim compensation during the pendency of the criminal complaint and criminal appeal.
(b) The two new inserted section in NI Act having applicability of retrospectively and not prospectively
(c) The interim compensation has to be paid by drawer of cheque within a prescribed time period of 30 days from the date of the passing of the Order by the Court, or within the further extended period of 45 days
(d) The amount of fine imposed under section 138 or the amount of compensation awarded under section 357 of the CRPC, shall be reduced by the amount paid or recovered as interim compensation
(e) The Appellate Court may order the Appellant to deposit such sum which shall be minimum of 20% of the fine or the total compensation awarded by the trial Court.

(i) (b) and (c)
(ii) (b) (c) and (d)
(iii) (a) (b) and (c)
(iv) (a) (b) (c) and (d)
(v) (d) and (e)
(vi) (b) and (c)