Types of accounts - savings, recurring, fixed deposit, CASA, Pradhan Mantri Jan Dhan Yojana, KYC norms - One Line Questions

1. What is the minimum age requirement to open a standard savings account in India? — 18 years
2. The 'Customer Identification Program' (CIP) is a part of which banking regulation? — KYC Norms
3. Which document is typically required for address proof during KYC verification? — Driving License
4. The term 'CASA Ratio' in banking refers to the ratio of: — Current Accounts and Savings Accounts deposits to total deposits
5. If a depositor fails to pay an installment on a Recurring Deposit, the account is typically: — Considered closed, and interest is calculated on the deposited amount for the period it was held.
6. Which of the following is a key component of KYC (Know Your Customer) compliance? — Verifying the customer's identity and address
7. Which of the following is a valid document for 'Proof of Address' in India for KYC? — All of the above
8. Which type of deposit is characterized by a fixed tenure and usually offers a higher interest rate than savings accounts? — Fixed Deposit
9. Which account is designed for individuals who want to save a fixed amount regularly over a period and earn compound interest? — Recurring Deposit Account
10. What is the main difference between a Savings Account and a Current Account regarding interest? — Savings accounts earn interest, while current accounts typically do not.
11. What does 'CASA' stand for in the banking sector? — Current Accounts and Savings Accounts
12. Which of the following is NOT a typical purpose of KYC norms? — Enhancing customer service
13. Which of the following is a crucial element of KYC verification for an individual customer? — Customer's PAN card number (for certain transactions)
14. The 'Accidental Insurance Cover' up to a certain amount is a benefit associated with which account type under PMJDY? — Jan Dhan Account
15. Which type of bank account allows customers to deposit money and withdraw it freely without any restrictions on the number of transactions? — Savings Account
16. A Fixed Deposit account is characterized by: — A fixed tenure and a pre-determined interest rate
17. Which of the following is a key feature of the Pradhan Mantri Jan Dhan Yojana (PMJDY)? — Providing insurance cover and overdraft facility
18. What is the main advantage of a Savings Account over a Fixed Deposit? — Greater liquidity and accessibility of funds
19. KYC norms in banking primarily aim to: — Prevent money laundering and terrorist financing
20. What is the consequence of withdrawing funds from a Fixed Deposit before its maturity date? — A penalty is usually imposed, and interest may be reduced.
21. A Recurring Deposit (RD) account is best suited for individuals who wish to: — Save a fixed amount regularly over a period
22. In a Recurring Deposit, the installment amount is fixed, while the interest earned: — Compounded on the growing balance over time.
23. A high CASA ratio is generally considered positive for a bank because: — It implies a lower cost of funds and greater financial stability.
24. The Pradhan Mantri Jan Dhan Yojana aims to provide: — Access to banking and financial services for all citizens
25. What is a disadvantage of a Fixed Deposit account for a customer? — Premature withdrawal usually incurs a penalty
26. Which of the following is generally NOT considered a valid KYC document for identity proof in India? — Library Card
27. The Pradhan Mantri Jan Dhan Yojana was launched with the primary objective of: — Providing access to financial services like banking, insurance, and pension
28. Which of the following is a mandatory KYC requirement for opening a bank account in India? — Submitting proof of identity and address
29. Banks prefer CASA deposits because they: — Are less volatile and provide a stable funding base.
30. A customer opens a savings account with a deposit of Rs. 10,000 and earns an annual interest of 4%. After one year, the total amount in the account (before any withdrawals) would be: — Rs. 10,400
31. Under PMJDY, the overdraft facility is typically available up to: — Rs. 2,000
32. Which account is primarily used for business purposes and facilitates a high volume of transactions without interest earnings? — Current Account
33. Which account type is most suitable for businesses that have frequent and large transactions? — Current Account
34. A customer wants to deposit a small, fixed amount every month for a specific period to build a corpus. Which account should they choose? — Recurring Deposit Account
35. A customer needs a bank account that allows easy access to funds for daily business operations and does not earn interest. Which account is most suitable? — Current Account
36. Which account requires the depositor to pay a fixed sum at regular intervals for a specified period? — Recurring Deposit Account
37. What is the primary difference in withdrawal flexibility between a Savings Account and a Fixed Deposit? — Savings accounts offer high liquidity, while fixed deposits restrict access to funds.
38. The 'Zero Balance' facility is a significant aspect of which government financial inclusion scheme? — Pradhan Mantri Jan Dhan Yojana
39. The 'RuPay' debit card is often provided to account holders under which scheme? — Pradhan Mantri Jan Dhan Yojana
40. The 'Life Cover' benefit under PMJDY is provided by: — The Insurance Regulatory and Development Authority (IRDAI)
41. In a Savings Account, interest is typically calculated on: — The daily product of the balance
42. CASA deposits are considered 'cheap funds' for banks because: — They generally carry lower interest rates compared to term deposits.
43. What is the primary purpose of a 'term deposit' in banking? — To earn a fixed interest rate for a specified duration
44. Which of the following is a primary objective of KYC regulations for banks? — To ensure the customer is genuine and to understand their financial activities
45. What is the primary objective of a Recurring Deposit (RD) account? — To encourage disciplined saving of small amounts
46. What is the purpose of the 'Know Your Customer' (KYC) directive from regulatory bodies? — To gather detailed customer information for risk assessment and regulatory compliance
47. What is the primary characteristic of a Fixed Deposit (FD) account? — Funds are locked for a specific period
48. In a Fixed Deposit, the interest rate is typically: — Fixed for the entire duration of the deposit.
49. The 'overdraft facility' offered under PMJDY allows account holders to: — Withdraw more money than their balance for a limited period
All One Line Questions
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