Question 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.Next working day.2 hours of the batch settlement (B+2).End of the day.

View 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.

Question 2

ECS (Electronic Clearing Service) Credit is primarily used for:

ATM withdrawal.Collecting utility bills.Credit card payment.Disbursing salary, pension, or dividends to a large number of beneficiaries.

View 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).

Question 3

IMPS transactions are settled:

On T+1 basis.In real-time (instantaneously) on a gross basis.At the end of the day (Net Settlement).In batches every 30 minutes.

View Explanation

IMPS (Immediate Payment Service) provides 24x7 instant interbank electronic fund transfer. Transactions are settled individually and instantly.

Question 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

View 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.

Question 5

A SWIFT Code (BIC) consists of how many characters?

11 digits (Numeric)16 digits8 or 11 characters (Alphanumeric)10 characters

View 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.

Question 6

The "Money Transfer Service Scheme" (MTSS) is used for:

Transferring funds within India.Corporate remittances.Sending money from India to abroad.Personal inward remittances from abroad to India (e.g., Western Union).

View Explanation

MTSS is a tied-up arrangement between overseas principals and Indian agents for personal remittances towards family maintenance. It allows ONLY inward remittances.

Question 7

NACH (National Automated Clearing House) is primarily a system for:

Handling high volume, repetitive/periodic transactions (Bulk push/pull).Card settlements.High value real-time payments.Foreign currency clearing.

View Explanation

NACH replaced ECS. It is used for bulk transactions like salary payments, pension, dividend (Credit) and utility bills, EMI collections (Debit).

Question 8

Under the "Rupee Drawing Arrangement" (RDA), is there a cap on the number of remittances a beneficiary can receive?

Yes, 12 per year.No, there is no cap on the number of transactions.Yes, 30 per year.Yes, only 1 per month.

View 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.

Question 9

If an NEFT transaction is returned by the beneficiary bank, the originating bank must credit the customer's account within:

Next working day.B+2 hours (Batch completion + 2 hours).7 days.End of the day.

View 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%.

Question 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 Indian Rupees.Credit to the beneficiary account in Nepalese Rupees (NPR) after conversion.Transfer of Gold.Cash payout in USD.

View 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.

Question 11

The "Rupee Drawing Arrangement" (RDA) differs from "Money Transfer Service Scheme" (MTSS) in that RDA:

Does not allow trade remittances.Does not have any specific limit on the individual transaction amount for personal purposes.Is only for personal remittances.Has a cap of USD 2500 per transaction.

View 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.

Question 12

Which SWIFT message type is used for a "Single Customer Credit Transfer" (sending money abroad)?

MT 202MT 700MT 103MT 940

View 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.

JAIIB Quiz

Quiz Finished!