1. In an NEFT transaction, if the funds are not credited to the beneficiary's account, the destination bank must return the funds to the originating bank within:
24 hours.
2 hours of the batch settlement (B+2).
Next working day.
End of the day.
Explanation:
As per RBI guidelines, uncredited NEFT proceeds must be returned to the originating bank within 2 hours of the completion of the batch (B+2) to avoid penalties.
2. ECS (Electronic Clearing Service) Credit is primarily used for:
Disbursing salary, pension, or dividends to a large number of beneficiaries.
Credit card payment.
Collecting utility bills.
ATM withdrawal.
Explanation:
ECS Credit is a "many-to-one" or "one-to-many" push system. Specifically, ECS Credit is used by a single institution to credit the accounts of many beneficiaries (bulk payments).
3. IMPS transactions are settled:
In real-time (instantaneously) on a gross basis.
At the end of the day (Net Settlement).
On T+1 basis.
In batches every 30 minutes.
Explanation:
IMPS (Immediate Payment Service) provides 24x7 instant interbank electronic fund transfer. Transactions are settled individually and instantly.
4. Under the Indo-Nepal Remittance Facility Scheme, what is the maximum amount that can be remitted per transaction by a walk-in customer (non-account holder)?
?10,000
?2 Lakh
?50,000
?25,000
Explanation:
For cash-based remittances (walk-in customers), the limit is ?50,000 per transaction with a maximum of 12 remittances per year. Account holders can remit higher amounts.
5. A SWIFT Code (BIC) consists of how many characters?
16 digits
10 characters
11 digits (Numeric)
8 or 11 characters (Alphanumeric)
Explanation:
Standard SWIFT codes are 8 or 11 characters long. The first 4 are bank code, next 2 country code, next 2 location code, and last 3 (optional) branch code.
6. The "Money Transfer Service Scheme" (MTSS) is used for:
Personal inward remittances from abroad to India (e.g., Western Union).
Corporate remittances.
Transferring funds within India.
Sending money from India to abroad.
Explanation:
MTSS is a tied-up arrangement between overseas principals and Indian agents for personal remittances towards family maintenance. It allows ONLY inward remittances.
7. NACH (National Automated Clearing House) is primarily a system for:
Foreign currency clearing.
Handling high volume, repetitive/periodic transactions (Bulk push/pull).
High value real-time payments.
Card settlements.
Explanation:
NACH replaced ECS. It is used for bulk transactions like salary payments, pension, dividend (Credit) and utility bills, EMI collections (Debit).
8. Under the "Rupee Drawing Arrangement" (RDA), is there a cap on the number of remittances a beneficiary can receive?
Yes, only 1 per month.
No, there is no cap on the number of transactions.
Yes, 12 per year.
Yes, 30 per year.
Explanation:
Unlike MTSS (Money Transfer Service Scheme) which caps receipts at 30 per year, RDA has no specific cap on the number of transactions for personal purposes.
9. If an NEFT transaction is returned by the beneficiary bank, the originating bank must credit the customer's account within:
7 days.
End of the day.
Next working day.
B+2 hours (Batch completion + 2 hours).
Explanation:
Banks must credit the returned NEFT amount to the originator's account within B+2 hours to avoid paying penal interest at the repo rate + 2%.
10. Under the Indo-Nepal Remittance Facility, an NEFT-enabled bank branch in India can remit funds to Nepal. For a beneficiary maintaining an account with Nepal SBI Bank Ltd (NSBL), the remittance involves:
Credit to the beneficiary account in Nepalese Rupees (NPR) after conversion.
Transfer of Gold.
Credit to the beneficiary account in Indian Rupees.
Cash payout in USD.
Explanation:
The remittance is originated in Indian Rupees, and the credit to the beneficiary in Nepal is afforded in Nepalese Rupees. The exchange rate is applied by SBI.
11. The "Rupee Drawing Arrangement" (RDA) differs from "Money Transfer Service Scheme" (MTSS) in that RDA:
Does not have any specific limit on the individual transaction amount for personal purposes.
Does not allow trade remittances.
Has a cap of USD 2500 per transaction.
Is only for personal remittances.
Explanation:
MTSS has a cap of USD 2500 per transaction and 30 transactions/year. RDA has no specific limit on individual transactions for personal purposes, though trade remittances have caps.
12. Which SWIFT message type is used for a "Single Customer Credit Transfer" (sending money abroad)?
Explanation:
MT 103 is the standard SWIFT payment message used for cross-border wire transfers between banks for their customers. MT 202 is for bank-to-bank transfers.