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NRI BUSINESS

Total questions: 40

Worksheet time: 14mins

Name
Class
Date
1.

Students going abroad for studies are treated as Non-Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA, 1999.

a)

TRUE

b)

FALSE

2.

In terms of Regulation 2 of Notification No.13 dated May 3, 2000 of FEMA 1999, Non-Resident Indian (NRI) means a person resident outside India who is a citizen of India. A person who has gone out of India or who stays outside India, in either case-

a)

For or on taking up employment outside India

b)

For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period

c)

For carrying on outside India a business or vacation outside India

d)

All the above

3.

The residential status of an Indian is defined in which act

a)

FOREIGN EXCHANGE MANAGEMENT ACT

b)

INCOME TAX ACT

c)

STAMP ACT

d)

NEGOTIABLE INSTRUMENT ACT

4.

Non-Resident is a person who is not resident in India for a period of ...................days in the previous year as per IT act ?

a)

150

b)

90

c)

182

d)

365

5.

A Non-resident who has returned to India for good is covered under the provisions of section 6 (6) of the Income-tax Act. He / she is given a special status of ................. , if the person is non-resident, as per the above provisions, for at least 9 out of 10 previous years prior to the previous year under consideration.

a)

Non-Resident Indian (NRI)

b)

Resident but Not Ordinarily Resident (RNOR)

c)

Person of Indian Origin (PIO)

d)

Overseas Citizenship of India (OCI)

6.

A person who is returning to India after 9 years of stay outside India (and who was Non-Resident for each of the 9 years under the Income Tax Act, 1961), RNOR status can be held for a maximum period of ..........years only.

a)

3 years

b)

2 years

c)

1 year

d)

5 years

7.

The resident POA holder shall NOT make payment by way of gift to a resident on behalf of the account holder.

a)

TRUE

b)

FALSE

8.

The resident POA holder is permitted to apply for any of the Banks Anytime Channels i.e. INB, ATM etc.

a)

TRUE

b)

FALSE

9.

RBI has now permitted opening of ............ NRO account for citizens of Bangladesh and Pakistan belonging to minority communities in those countries ?

a)

one

b)

two

c)

three

d)

not permitted

10.

Opening of accounts by individual(s) of ....................... nationality may be allowed by Authorised Dealer or Authorised Bank, subject to satisfying itself that the individual(s) hold: (1) a valid visa and (2) a valid residential permit issued by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned. (3) KYC Documents

a)

AUSTRALIA

b)

BANGLADESH

c)

CHINA

d)

NORTH KOREA

11.

The .......................... account combines the benefits of a FCNR (B) deposit with Forward Cover to give enhanced return to NRI customers.

a)

Forward contract deposit account

b)

NRI savings bank account

c)

FCNB Premium Account

d)

NRO Fixed deposit account

12.

The main difference between NRE and NRO account is

a)

Repartiability of funds

b)

Nature of accounts

c)

currency of accounts

d)

Reliability of accounts

13.

A foreign national who arrived to India on tour, employment or for education purpose is allowed to open which type of the following account?

a)

NRE AC

b)

NRO AC

c)

RFC AC

d)

SB AC

14.

Who is an NRI as per IT act ?

a)

A person who has resided in India for a minimum period of 182 days in the previous year

b)

If he is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.

c)

Defined as per FEMA 1999

d)

All the above

15.

Expand PIO?

a)

Pension Information order

b)

Person of Indian Origin

c)

Person from International organization

d)

Person of Israel Origin

16.

NRE account can be opened in the denomination of ?

a)

Any freely convertible currency

b)

Any currency

c)

Indian Rupee

d)

None of the above

17.

NRE/NRO account can be opened in the form of ?

a)

Savings Bank account

b)

Current account

c)

Fixed deposit or RD account

d)

Any of the above

18.

NRE/NRO/FCNR (B) Account can be opened jointly with Resident under "F or S" type ?

a)

True

b)

False

19.

FCNR(B) account can be opened in the denomination of ?

a)

Indian Rupee

b)

Any foreign Currency

c)

Any freely convertible foreign currency

d)

Any of the above

20.

Term Deposit under FCNR (B) to be opened for a minimum and maximum period of ?

a)

One year & five years

b)

Two years & four years

c)

Three years & five years

d)

Five Years & ten years

21.

Which of the following type of transactions is not allowed among NRE,NRO and FCNR (B) accounts ?

a)

NRE ac to NRE ac

b)

NRO ac to NRO ac

c)

FCNR (B) ac to NRE ac

d)

NRO ac to NRE ac

22.

FCNR (B) deposits can be opened in .................. currencies ?

a)

6 (USD, EURO, GBP, JPY, CAD, AUD)

b)

4 (USD, EURO, SGD, SAR)

c)

5 (USD, EURO, GBP, CHF, NZD)

d)

3 (USD, EURO, GBP)

23.

Persons resident in Nepal and Bhutan cannot have the .................. accounts in India ?

a)

NRE

b)

NRO

c)

FCNR (B)

d)

NONE

24.

Maximum amount that can be remitted freely under Liberalized Remittance Scheme ?

a)

USD 100000/-

b)

USD 200000/-

c)

USD 250000/-

d)

USD 300000/-

25.

Our Bank’s Global NRI Centre is located in ?

a)

Trichy

b)

Mumbai

c)

Kolkata

d)

Ernakulam

26.

NRE TDR/STDR can be opened for a Maximum Period of

a)

5 years

b)

10 years

c)

7 years

d)

1 year

27.

In the case of Non-Resident External Rupee deposits and NRO deposits the interest rates are stipulated by

a)

RBI

b)

By Individual Banks

c)

IBA

d)

None of these

28.

Minimum age for a NRI Home Loan borrower

a)

18 years

b)

21 years

c)

24 years

d)

25 years

29.

Under NRI Car Loan Scheme, the loan must be closed before borrower attains the age of _______ years or before superannuation.

a)

60 Years

b)

65 years

c)

70 years

d)

75 years

30.

What is the minimum NAI of the applicant to become eligible under NRI Car Loan scheme ?

a)

12 times of NMI

b)

15 times of NMI

c)

18 times NMI

d)

24 times NMI

31.

Our exclusive wealth management "______________" is available to our NRI customers

a)

Exclusive

b)

Exclusif

c)

Exclusion

d)

Inclusive

32.

DTAA is an agreement between two countries to ensure that the same income is not taxed simultaneously by both the countries and if taxed, a relief is given to the affected party

a)

Double Tax Avoidance Agreement

b)

Double Taxation Avoidance Agreement

c)

Double Taxation Avoid Agreement

d)

Double Taxation Availing Agreeement

33.

Tax Residency Certificate(TRC) has been made mandatory for all non-residents for claiming the DTAA benefits

a)

True

b)

False

34.

.................... facility is given for Loan against property (LAP)

a)

Demand Loan

b)

Overdraft

c)

Term Loan

d)

Cash Credit

35.

Maximum loan under LAP at rural and semi- urban area i.e places with population upto 1 lac is

a)

Nil

b)

Rs. 1 Cr

c)

Rs. 2 Cr

d)

Rs. 5 Cr

36.

What is the maximum loan amount under the loan against NRI deposits ?

a)

No Maximum

b)

Rs. 1 Cr

c)

Rs. 2 Cr

d)

Rs. 5 Cr

37.

What is the minimum loan amount for NRI home loans ?

a)

Rs. 2 Lacs

b)

Rs. 3 Lacs

c)

Rs. 5 Lacs

d)

Rs. 1 Lac

38.

For NRI home loan and Maxgain the repayment period is maximum .......... years or upto the age of ........... years or by the age of retirement, whichever is early .

a)

25, 75

b)

30, 60

c)

30, 65

d)

35, 70

39.

POA in banks standard format if required can be given to close relatives namely, spouse, father, mother, brother, sister, Children, Father-in-law and mother-in-law

a)

True

b)

False

40.

The limit of overdraft against deposits will be .........% of the face value of deposit for TDR/eTDR and .........% for STDR/eSTDR

a)

75%, 90%

b)

60%, 70%

c)

50%, 75%

d)

30%, 50%