Bank of India Credit Officer 2025

1. The primary purpose of credit appraisal is to assess:

2. Which statement best describes working capital finance?

3. Current Ratio is calculated as:

4. A Current Ratio below the normally accepted level may indicate:

5. Debt-Equity Ratio is mainly used to judge:

6. Drawing Power in a cash credit account is generally based on:

7. Margin in working capital finance refers to:

8. In cash credit, the borrower can draw funds:

9. Term loans are generally sanctioned for:

10. DSCR measures the ability of a borrower to:

11. A higher inventory holding period usually indicates:

12. Operating cycle means the time taken to convert:

13. Collateral security means:

14. Primary security for a stock-based cash credit limit is normally:

15. Hypothecation means:

16. Pledge differs from hypothecation because in pledge:

17. Mortgage is generally associated with:

18. CIBIL score is used by banks mainly to assess:

19. A loan account with frequent overdrawings and irregular credits may indicate:

20. Stock statements are obtained in working capital accounts mainly to:

21. Credit monitoring primarily aims to:

22. Fund-based credit facility includes:

23. Non-fund-based facility includes:

24. End-use verification is important because it ensures:

25. The most important source for repayment of a business loan should be:

26. IRAC norms relate to:

27. A term loan generally becomes NPA when interest or installment remains overdue for more than:

28. In a cash credit account, an account is treated as NPA if it remains out of order for more than:

29. Sub-standard asset means an asset which has remained NPA for a period up to:

30. A doubtful asset is one which has remained in the sub-standard category for:

31. Loss asset is an asset where loss has been identified by:

32. Provisioning norms for NPAs are intended to:

33. SMA stands for:

34. SMA classification helps banks to:

35. Restructuring of a stressed account should be based on:

36. SARFAESI Act is mainly used for:

37. Under SARFAESI, security interest can generally be enforced by:

38. DRT stands for:

39. IBC stands for:

40. The main objective of IBC is to:

41. Basel norms primarily deal with:

42. Under Basel III, Common Equity Tier 1 is part of:

43. Capital adequacy protects banks mainly against:

44. Credit risk means the risk of:

45. Market risk arises due to adverse movement in:

46. Operational risk arises from failure of:

47. CRR is maintained by scheduled banks with:

48. SLR requires banks to maintain liquid assets in the form of:

49. Repo rate is the rate at which RBI:

50. A rise in repo rate generally makes bank borrowing from RBI:

51. The Banking Regulation Act, 1949 empowers RBI to:

52. The Negotiable Instruments Act deals with instruments such as:

53. Dishonour of cheque for insufficiency of funds is covered under:

54. KYC norms primarily require banks to verify:

55. CKYC stands for:

56. AML measures are aimed at preventing:

57. PAN is generally required in banking transactions to:

58. A suspicious transaction should be reported by banks to:

59. Priority Sector Lending targets are prescribed by:

60. Which of the following is generally included in priority sector?

61. MSME classification in India is based on:

62. CGTMSE provides:

63. MUDRA loans are mainly intended for:

64. PMJDY is associated with:

65. PMJJBY is a government-backed:

66. PMSBY provides:

67. Atal Pension Yojana is primarily focused on:

68. Stand-Up India scheme supports bank loans to:

69. PM SVANidhi is meant for:

70. Aadhaar-based e-KYC helps banks to:

71. Nomination facility in deposit accounts helps:

72. A garnishee order is issued by:

73. Banker's lien means the bank's right to:

74. Financial inclusion aims to provide:

75. Digital KYC and simplified account opening are useful because they:

76. Which organization is responsible for operating the Unified Payments Interface (UPI) in India?

77. Which payment system enables real-time transfer of funds without any minimum transaction limit?

78. RTGS is primarily suitable for:

79. Which payment system settles transactions individually in real time?

80. NPCI has been established mainly to:

81. A Payment Gateway primarily facilitates:

82. Which authentication method provides an additional layer of security for online card transactions?

83. Tokenisation of debit and credit cards primarily aims to:

84. Which of the following is NOT a retail payment system?

85. NACH is mainly used for:

86. EEFC Account stands for:

87. A Nostro Account is:

88. A Vostro Account refers to:

89. Under FEMA, the primary objective is to:

90. A Letter of Credit (LC) primarily provides:

91. A Bank Guarantee differs from a Letter of Credit because:

92. Which Basel III ratio is introduced to ensure banks maintain adequate high-quality liquid assets to withstand short-term liquidity stress?

93. The Net Stable Funding Ratio (NSFR) aims to:

94. Which of the following is NOT a function of the Reserve Bank of India?

95. Deposit insurance in India is provided by:

96. Which institution primarily provides refinance support for agriculture and rural development?

97. Which organization is the principal financial institution for promotion, financing and development of MSMEs?

98. The primary objective of EXIM Bank is to:

99. Which of the following best reflects the objective of Financial Inclusion?

100. A Credit Officer should primarily approve a loan based on:

101. Read the passage and answer the following question. Banks are increasingly adopting artificial intelligence to improve customer service, detect fraud, strengthen credit monitoring, and automate routine banking operations. In earlier years, many customer requests required branch visits, manual verification, or long processing time. Today, chatbots can answer basic queries throughout the day, automated systems can classify complaints, and machine-learning models can examine large volumes of transaction data within seconds. These tools help banks identify unusual patterns such as sudden high-value transfers, repeated failed login attempts, or transactions that do not match a customer's regular banking behavior. AI is also being used in credit appraisal, where it can support faster analysis of income data, repayment history, account conduct, and other indicators of creditworthiness. For customers, such technology may mean quicker service, fewer delays, and easier access to banking facilities through mobile and digital channels. For banks, it can reduce operational costs, improve consistency, and help staff focus on more complex cases that require judgment and relationship management. However, the adoption of AI in banking is not free from risk. Financial institutions handle sensitive personal and financial information, so data privacy becomes a major concern whenever automated systems collect, store, or analyze customer records. A weak cybersecurity framework may expose customers to identity theft, fraud, or unauthorized access to their accounts. There is also a risk that algorithms may produce biased or inaccurate outcomes if they are trained on incomplete, outdated, or unrepresentative data. For example, an automated credit model may unfairly reject an applicant if it does not properly understand informal income patterns, seasonal business cash flows, or regional differences in financial behavior. Therefore, banks cannot depend only on technology. They must combine AI-driven efficiency with human oversight, clear accountability, strong audit trails, and regular review of automated decisions. Regulators also expect banks to maintain robust risk-management practices, protect customer interests, and ensure that innovation does not weaken transparency or fairness. Staff training is equally important, because employees must understand how digital tools work, when to trust them, and when to escalate a case for manual review. In short, AI can make banking faster, safer, and more inclusive, but only when it is implemented responsibly. The real challenge for banks is to balance technological innovation with data protection, cybersecurity, ethical decision-making, and sound governance. According to the passage, one challenge associated with AI adoption in banking is:

102. The primary objective of the passage is to:

103. Identify the part containing the grammatical error.

104. Choose the correctly spelt word.

105. The Reserve Bank of India has ______ new guidelines for digital lending.

106. The banking sector has become increasingly ______ because of rapid technological advancements.

107. Choose the synonym of Prudent.

108. Choose the antonym of Scarcity.

109. The committee have approved the proposal.

110. Arrange the sentences in the correct order.

111. Choose the word nearest in meaning to Mitigate.

112. Choose the correct preposition. The borrower complied ______ the RBI guidelines.

113. Select the correctly punctuated sentence.

114. Choose the most appropriate word. The company remained financially ______ despite the economic slowdown.

115. Choose the correctly written sentence.

116. Replace the underlined phrase. The borrower did not complied with the loan conditions.

117. Choose the one-word substitution. A person who cannot read or write is called:

118. Choose the correct passive form. The bank sanctioned the loan.

119. Choose the correct indirect speech. The manager said, "Submit the documents tomorrow."

120. Choose the most suitable conclusion. The company has shown consistent profits for five consecutive years, maintained healthy cash flows, and reduced its debt burden.

121. Read the passage and answer the question. Financial inclusion has become one of the major priorities of the Indian banking system because a large section of the population historically remained outside the formal financial network. Many low-income households, small traders, migrant workers, farmers, and daily wage earners depended on cash transactions or informal lenders for their savings and borrowing needs. This often made them vulnerable to high interest rates, lack of documentation, limited insurance protection, and difficulty in receiving government benefits. To address this gap, banks and policymakers have worked together to expand access to basic banking services. The opening of no-frills accounts, wider use of Aadhaar-enabled identification, simplified KYC procedures, and the growth of digital payment platforms have made it easier for people to enter the formal banking system. Government-backed schemes have also played an important role by encouraging savings, providing insurance cover, supporting pension access, and enabling direct benefit transfers into bank accounts. Digital platforms have further strengthened this process. Mobile banking, UPI, micro-ATMs, banking correspondents, and doorstep banking services allow customers in remote or semi-urban areas to perform transactions without always visiting a full-service branch. For small businesses, access to formal banking can create a transaction history, which may later help them obtain credit at reasonable rates. For rural households, a bank account can make it easier to receive subsidies, wages, remittances, and emergency support in a transparent manner. Financial inclusion is therefore not limited to opening accounts; it also requires active usage of those accounts, availability of suitable credit, financial literacy, customer protection, and trust in digital channels. Despite progress, several challenges remain. Some customers may have low digital literacy, irregular income, poor internet connectivity, or limited awareness of banking products. Others may open accounts but continue to use cash because they are unfamiliar with digital transactions or worried about fraud. Banks must therefore combine technology with human support. They need to educate customers, maintain secure systems, offer simple products, and ensure that grievance redressal is accessible. Financial inclusion becomes meaningful only when banking services are affordable, reliable, easy to understand, and actually useful in day-to-day life. It also encourages responsible account usage and safer saving habits. By expanding access through digital platforms, simplified KYC, and government-supported schemes, banks can bring more people into the formal financial system and support broader economic participation. According to the passage, financial inclusion has been promoted through:

122. Identify the part containing the grammatical error.

123. The credit officer advised the borrower to ______ all the required documents before loan disbursement.

124. The bank has taken several measures to improve customer satisfaction and reduce complaints. Choose the incorrect part.

125. Choose the word that is closest in meaning to Diligent.