JAIIB RBWM Mini Mock Test, Check Essential Practice Tips

1. Which of the following best describes the defining characteristic of retail banking?

2. Which of the following is NOT an advantage of retail banking for a bank?

3. Consider the following statements about the evolution of retail banking in India: 1. Nationalisation of banks in 1969 and 1980 significantly expanded retail banking outreach. 2. The entry of new private sector banks post-1991 liberalisation introduced technology-driven retail models. 3. Financial inclusion initiatives like Jan Dhan Yojana are unrelated to retail banking evolution. 4. ATM networks and internet banking reduced the need for physical branch expansion. Which statements are correct?

4. Which of the following is a key prerequisite for success in retail banking?

5. Profitability in banking is best defined as:

6. Bank Y has: Net Interest Income = ₹180 crore, Non-Interest Income = ₹40 crore, Operating Expenses = ₹120 crore, Provisions = ₹30 crore, Tax = ₹17 crore. What is its Net Profit?

7. Which of the following correctly distinguishes between Gross Profit and Operating Profit in a bank?

8. A bank reports: Average Total Assets = ₹8,000 crore, Net Income = ₹160 crore, Bank Capital = ₹800 crore. What is its Return on Equity (ROE)?

9. Which of the following statements about Return on Assets (ROA) in banking is correct?

10. The Leverage Ratio in banking is defined as:

11. Consider the following statements regarding branch profitability: 1. A branch is considered profitable if its total income exceeds its allocated costs including overheads. 2. Branch profitability analysis helps identify underperforming branches for corrective action. 3. All branches of a bank must individually achieve profitability for the bank to be profitable overall. 4. Transfer pricing of funds between branches is a mechanism used in branch profitability analysis. Which are correct?

12. Which of the following is NOT a strategy to improve branch operating efficiency?

13. Net Interest Margin (NIM) is calculated as:

14. Bank Z has Interest Income = ₹500 crore, Interest Expense = ₹320 crore, Average Total Assets = ₹4,500 crore. What is the Net Interest Margin?

15. Which of the following factors directly contributes to the profitability of banks in India?

16. Which of the following best describes the ‘Departmental Approach’ to organising retail banking within a bank?

17. Which retail banking business model involves routing retail loan sourcing through Direct Selling Agents (DSAs) while credit decisions remain with the bank?

18. Consider the following statements regarding the distinction between Retail Banking and Corporate/Wholesale Banking: 1. Retail banking involves standardised products while corporate banking involves customised solutions. 2. Corporate banking clients are fewer in number but higher in individual loan sizes. 3. Retail banking credit decisions are largely rule-based using scoring models, whereas corporate credit involves detailed individual assessment. 4. Recovery of retail loans in case of default is simpler due to availability of collateral in all cases. Which are correct?

19. Which of the following is a major challenge faced by retail banking in India?

20. The Operating Efficiency Ratio (Cost-to-Income Ratio) in banking is calculated as:

1. According to Maslow’s Hierarchy of Needs, which banking product most directly satisfies ‘Safety and Security’ needs of a customer?

2. Which of the following best defines a ‘product line’ in retail banking?

3. A bank is conducting market research to identify customer pain points before launching a new savings product. This activity belongs to which stage of the New Product Development (NPD) process?

4. In the context of the Product Life Cycle (PLC), a retail banking product is experiencing rapid growth in sales, increasing competition from other banks, and expanding profitability. Which stage is this?

5. Which of the following is NOT a valid constraint in New Product Development for retail banks?

6. CIBIL TransUnion Score ranges from 300 to 900. A score of 750 and above is generally considered:

7. Which of the following credit bureaus is licensed by RBI to operate in India?

8. Which of the following factors does a credit scoring model typically NOT consider?

9. A customer frequently applies for multiple new loans within a short period. How does this behaviour typically impact their credit score?

10. A Basic Savings Bank Deposit Account (BSBDA) holder wants to open another savings bank account at the same bank. As per RBI guidelines:

11. Which of the following statements about a Small Account (as per RBI guidelines) is CORRECT?

12. Post RBI’s deregulation of savings bank interest rates in October 2011, banks are required to:

13. A minor aged 12 years wants to independently operate a savings bank account. Which of the following is correct as per RBI guidelines?

14. Which of the following facilities is NOT normally permitted in savings bank accounts of illiterate persons?

15. A current account holder has not operated their account for a continuous period of two years. The account will be classified as:

16. As per the Income Tax Act, FD maturity proceeds of ₹20,000 or more must be repaid by a bank:

17. What is the minimum tenure for a Term Deposit (Fixed Deposit) for amounts below ₹15 lakh as per RBI guidelines?

18. Deposits that have not been operated or claimed for a period of 10 years or more are transferred by banks to:

19. In a locker agreement, if the sole hirer has nominated a person and the sole hirer subsequently dies, the bank should:

20. Under the PMAY – Credit Linked Subsidy Scheme (CLSS), the interest subsidy is calculated on an NPV basis at a discount rate of 9% for a maximum loan tenure of:

1. Which of the following best describes the concept of ‘Marketing Mix’ as applicable to retail banking?

2. In the context of banking services marketing, which of the following is NOT one of the 7 Ps of the Marketing Mix?

3. Which of the following statements regarding Direct Selling Agents (DSAs) used by banks are correct?

4. The Banking Codes and Standards Board of India (BCSBI) Code of Commitment to Customers primarily aims to:

5. Under the Integrated Ombudsman Scheme, 2021, a customer can file a complaint with the Banking Ombudsman only if:

6. Which of the following statements about Customer Relationship Management (CRM) in retail banking are correct?

7. A bank’s branch receives a complaint from a customer that an unauthorised transaction of ₹25,000 was made on his debit card. The customer reported this to the bank within 4 days of receiving the SMS alert. As per RBI guidelines, what is the customer’s liability?

8. Match the following delivery channels in retail banking with their key characteristic:

9. Which of the following are characteristics of Internet Banking as a delivery channel?

10. Under the RBI framework on customer liability for unauthorised electronic transactions, ‘Limited Liability’ applies when:

11. In the context of Marketing Information Systems (MKIS) in banking, which of the following statements are true?

12. Which of the following best describes ‘Physical Evidence’ in the context of the 7 Ps of banking services marketing?

13. The BCSBI Code of Commitment to Micro and Small Enterprises (MSEs) specifically addresses:

14. Which of the following is the PRIMARY reason banks use Direct Selling Agents (DSAs) instead of relying solely on branch staff?

15. In a CRM implementation, which of the following represents the correct sequence of stages?

16. Under the Integrated Ombudsman Scheme, 2021, the maximum compensation that can be awarded to a complainant for mental agony and harassment (over and above the direct loss) is:

17. Which of the following statements about Mobile Banking are correct?

18. Consider the following statements about the BCSBI Code Compliance Rating:

19. A bank has set up a dedicated Grievance Redressal Officer. As per RBI guidelines, the bank must ensure that the Grievance Redressal Officer:

20. Which of the following best explains why ‘People’ is considered one of the most critical Ps in the banking services marketing mix?

1. Mr. Sharma is a 65-year-old retired government employee. He has a residential property in Delhi worth ₹80 lakh with a residual life of 18 years. He approaches a bank for a Reverse Mortgage Loan (RML). Which of the following statements is CORRECT regarding his eligibility and the loan?

2. Under the Reverse Mortgage Loan (RML), the formula for calculating periodic payment is:

3. A senior citizen aged 70 owns a house valued at ₹60 lakh. The bank offers RML at LTVR of 60%, for a tenure of 15 years at 9% p.a. (monthly). What is the approximate monthly payment?

4. Which of the following is NOT a feature of the Reverse Mortgage Loan in India?

5. Under Straight-Line Method (SLM) of depreciation, an asset costing ₹5,00,000 has a residual value of ₹50,000 and useful life of 9 years. The book value at the end of Year 6 will be:

6. Mr. Rohan invests ₹2,00,000 in an equity mutual fund. After 3 years the value is ₹3,10,000. He also has another equity investment made 6 months ago now worth ₹2,40,000 (cost ₹2,00,000). The tax treatment under current Indian rules would be:

7. Section 54EC of the Income Tax Act, 1961 provides exemption from Long-Term Capital Gains if the gains are invested in specified bonds within:

8. A property was purchased for ₹30 lakh in April 2015 and sold for ₹85 lakh in March 2024. The indexed cost of acquisition (CII for FY 2015-16 = 254; FY 2023-24 = 348) is approximately:

9. Which of the following deductions is ALLOWED under the New Tax Regime introduced under Section 115BAC?

10. Consider the following statements regarding the Old vs New Tax Regime for individuals:

11. The ‘Rule of 72’ is used to determine:

12. Using the Rule of 72, 115, and 144 — at an interest rate of 9% p.a., money will become approximately FOUR TIMES the original investment in how many years?

13. Mr. Verma invested ₹5,00,000 in a fixed deposit at 10% p.a. compounded annually. What will be the maturity amount at the end of 5 years?

14. The Future Value of an Ordinary Annuity of ₹10,000 per year for 4 years at 8% p.a. is:

15. The Future Value of an Annuity Due differs from an Ordinary Annuity because:

16. A bank offers a Portfolio Management Service (PMS). The SEBI 2020 guidelines require that the minimum net worth of a portfolio manager must be:

17. Which of the following statements about Portfolio Management Services (PMS) is INCORRECT?

18. ‘Concentrated Management’ in asset management refers to:

19. In wealth management, ‘Tactical Asset Allocation’ is best described as:

20. Mr. Gupta is a 45-year-old IT professional earning ₹25 lakh p.a. He wishes to retire at 60 and needs ₹1.5 crore at retirement. If he invests in a mutual fund earning 12% p.a., what approximate annual investment (ordinary annuity) is required? [Use FV annuity factor for 15 years @12% ≈ 37.28]