Banking Awareness Set 24 (Accounts in India by Non-residents)

This set contains banking awareness questions for various upcoming exams like SBI PO, IBPS PO, Clerk, NIACL Assistant and various other competitive exams. This set contains questions from the topic: Accounts in India by Non-residents [NRO , NRE, FCNR].

1. Which of the following account can be opened in a foreign Currency?
   A) FCNR Account
   B) NRE Account
   C) SNRR Account
   D) Both A and C
   
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   Option A
   Explanation: In Foreign Currency (Non-Resident) Account , a person can open account in any permitted currency i.e. a foreign currency which is freely convertible.
2. What does S stands for in SNRR Account?
   A) Sanction
   B) Special
   C) Subject
   D) Scheme
   
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   Option B
   Explanation: Special Non-Resident Rupee Account (SNRR account)
3. Which of the following account(s) is/are Freely repatriable?
   A) NRO
   B) NRE
   C) FCNR
   D) Both B and C
   
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   Option D
   Explanation: FCNR and NRE are fully repatriable.
   In case of NRO account: Not repatriable except for all current income.Balances in an NRO account of NRIs/ PIOs are remittable up to USD 1 (one) million per financial year (April-March) along with their other eligible assets.
4. Which of the following account(s) can be an example of savings account?
   A) FCNR (B) Account
   B) NRO
   C) NRE
   D) Both B and C
   
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   Option D
   Explanation: FCNR is only a fixed deposit account. NRO,NRE can be saving, current, RD, FD Account.
5. What is the maximum tenor of Term Deposit account in FCNR (B) Account?
   A) 1 year
   B) 2 years
   C) 3 years
   D) 5 years
   
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   Option D
   Explanation: 1 year – 5 year
6. In which of the following type of account, loans cannot be given outside India?
   A) NRO
   B) NRE
   C) FCNR
   D) Cannot be opened in any
   
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   Option A
   Explanation: Authorised Dealers may allow their branches/ correspondents outside India to grant loans to or in favour of non-resident depositor or to third parties at the request of depositor for bona fide purpose against the security of funds held in the NRE/ FCNR (B) accounts in India, subject to usual margin requirements. IN NRO such facality is not permitted
7. Interest earned on which of the following accounts is exempted from tax?
   A) NRO
   B) NRE
   C) FCNR
   D) Both B and C
   
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   Option D
8. What does B stands for in FCNR (B) Account?
   A) Bid
   B) Bond
   C) Bank
   D) Book
   
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   Option C
   Explanation: Bank
9. What are the accounts that a tourist visiting India can open?
   A) NRO
   B) NRE
   C) FCNR
   D) Both A and B
   
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   Option A
   Explanation: An NRO (current/ savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India.
10. Opening of accounts by individuals/ entities of Pakistan nationality requires prior approval of _____.
    A) Government of India
    B) Reserve bank of India
    C) SEBI
    D) All of the above.
    
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    Option B
    Explanation: Opening of accounts by individuals/ entities of Pakistan nationality/ ownership and entities of Bangladesh ownership requires prior approval of the Reserve Bank.