Banking Awareness Quiz – Set 66

Hello Aspirants,
Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. NEFT is an electronic fund transfer system that operates on a _________ basis which settles transactions in batches.
   A. Domain Net Settlement (DNS)
   B. Defined Net Settlement (DNS)
   C. Declared Net Settlement (DNS)
   D. Deferred Net Settlement (DNS)
   
   Answer & Explanation

   D. Deferred Net Settlement (DNS)
   Explanation:
   NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place with all transactions received till the particular cut-off time. These transactions are netted (payable and receivables) in NEFT.
   
   
2. In National Electronic Funds Transfer (NEFT) maximum amount per transaction is limited to ________
   A. Rs.75000
   B. Rs.50000
   C. Rs.80000
   D. Rs.90000
   
   Answer & Explanation

   B. Rs.50000
   Explanation:
   No. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.
   
   
3. The NEFT system facilitates ____cross-border transfer of funds from India to Nepal which is known as the Indo-Nepal Remittance Facility Scheme.
   A. One Way
   B. Two Way
   C. Multi way
   D. None of the Above
   
   Answer & Explanation

   A. One Way
   Explanation:
   The NEFT system also facilitates one-way cross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme. A remitter can transfer funds from any of the NEFT-enabled branches in to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees.
   
   
4. What is the charge of Inward transactions at destination bank branches in NEFT?
   A. Rs.1
   B. Rs.1.50
   C. Rs.2
   D. No Charge
   
   Answer & Explanation

   D. No Charge
   Explanation:
   Inward transactions – Free, no charge to be levied.
   
   
5. The beneficiary can expect to get credit for the NEFT transactions within ______business hours.
   A. 2
   B. 3
   C. 1
   D. None of the Above
   
   Answer & Explanation

   A. 2
   Explanation:
   The beneficiary can expect to get credit for the NEFT transactions within two business hours (currently NEFT business hours is from morning 8 AM to evening 7 PM on all week days and from morning 8 AM to afternoon 1 PM on Saturdays) from the batch in which the transaction was settled.
   
   
6. NEFT operates in hourly batches and there are _______ settlements from 8 am to 7 pm on week days.
   A. 3
   B. 6
   C. 8
   D. 12
   
   Answer & Explanation

   D. 12
   Explanation:
   NEFT operates in hourly batches – there are twelve settlements from 8 am to 7 pm on week days (Monday through Friday) and six settlements from 8 am to 1 pm on Saturdays.
   
   
7. The first 4 alpha characters in the 11 digit IFSC code represents ________
   A. Bank Name
   B. Branch Name
   C. Place Name
   D. None of the Above
   
   Answer & Explanation

   A. Bank Name
   Explanation:
   The Indian Financial System Code (IFS Code or IFSC) is an 11-character code with the first four alphabetic characters representing the bank name, and the last six characters(usually numeric, but can be alphabetic) representing the branch. The fifth character is 0 (zero).
   
   
8. In NEFT What is the charge for transactions up to Rs 10,000?
   A. not exceeding Rs 2.50 (+ Service Tax)
   B. not exceeding Rs 5 (+ Service Tax)
   C. not exceeding Rs 15 (+ Service Tax)
   D. None of the Above
   
   Answer & Explanation

   A. not exceeding Rs 2.50 (+ Service Tax)
   Explanation:
   Outward transactions at originating bank branches – charges applicable for the remitter
   For transactions up to Rs 10,000 : not exceeding Rs 2.50 (+ Service Tax)
   
   
9. In NEFT, What is the charge for transactions above Rs 10,000 upto Rs.1 lakh?
   A. not exceeding Rs 2.50 (+ Service Tax)
   B. not exceeding Rs 5 (+ Service Tax)
   C. not exceeding Rs 15 (+ Service Tax)
   D. None of the Above
   
   Answer & Explanation

   B. not exceeding Rs 5 (+ Service Tax)
   Explanation:
   Outward transactions at originating bank branches – charges applicable for the remitter
   For transactions above Rs 10,000 up to Rs 1 lakh: not exceeding Rs 5 (+ Service Tax)
   
   
10. In NEFT What is the charge for transactions above Rs 1 lakh and upto Rs.2 lakh?
    A. not exceeding Rs 2.50 (+ Service Tax)
    B. not exceeding Rs 5 (+ Service Tax)
    C. not exceeding Rs 15 (+ Service Tax)
    D. None of the Above
    
    Answer & Explanation

    C. not exceeding Rs 15 (+ Service Tax)
    Explanation:
    Outward transactions at originating bank branches – charges applicable for the remitter
    For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Service Tax)