WorksheetsMCQ Compliance policy
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
What does the Compliance Policy primarily provide?
a)
A marketing strategy for the Bank
b)
A framework for the Compliance Function of the Bank
c)
A guide for customer service interactions
d)
A procedure for financial planning
2.
To whom does the Compliance Policy apply?
a)
All employees in domestic locations only
b)
Employees on short-term assignments only
c)
All offices and personnel of the Bank in all jurisdictions
d)
Only permanent employees of the Bank
3.
How does the Bank resolve conflicts between local and home country compliance obligations?
a)
By following home country guidelines
b)
By following less stringent guidelines
c)
By following more stringent guidelines
d)
By ignoring local guidelines
4.
What is the review frequency of the Compliance Policy?
a)
Once every two years
b)
Once every quarter
c)
At least once a year
d)
When mandated by the RBI only
5.
What is the maximum extension allowed for the Policy if not reviewed by the due date?
a)
Six months
b)
One year
c)
Three months
d)
No extension is allowed
6.
Until when is the current Compliance Policy valid?
a)
31.10.2024
b)
31.10.2025
c)
31.12.2025
d)
31.03.2026
7.
What happens to RBI changes made after the Policy’s approval but before its expiry?
a)
They are ignored until the next review
b)
They form part of the Policy pending formal inclusion at renewal
c)
They are applicable only if notified by the Board
d)
They do not apply retroactively
8.
Who has the authority to allow the continuation of the Policy post-expiry?
a)
Compliance Officer
b)
Board of Directors
c)
Managing Director & CEO
d)
Audit Committee
9.
Which offices must adhere to local regulatory requirements in addition to home country regulations?
a)
Domestic branches only
b)
Overseas offices
c)
Rural branches only
d)
Headquarters only
10.
Under what circumstances can local regulatory guidelines override home country obligations?
a)
When mandated by RBI only
b)
When related to customer services, operations, or products
c)
When less stringent than home country guidelines
d)
Under no circumstances
11.
What is the primary objective of the Bank’s Compliance Philosophy?
a)
To increase profitability
b)
To achieve efficiency and effectiveness in compliance matters
c)
To enhance only customer satisfaction
d)
To focus solely on internal operations
12.
Who are the stakeholders mentioned in the Compliance Philosophy?
a)
Regulators, Employees, and Investors
b)
Customers, Government, and the Public at large
c)
All of the above
d)
None of the above
13.
What is a key function of the Compliance Philosophy concerning employees?
a)
Penalizing employees for non-compliance
b)
Educating and guiding employees in discharging compliance obligations
c)
Limiting employee access to compliance resources
d)
Delegating compliance entirely to external consultants
14.
Who holds the ultimate responsibility for overseeing the Bank’s compliance function?
a)
Senior Management
b)
Compliance Department
c)
Board of Directors
d)
External Auditors
15.
Which principle ensures that compliance is a responsibility shared across all employees?
a)
Ownership of Compliance
b)
Accountability
c)
Independence of the Compliance Function
d)
Compliance Culture
16.
What is the role of Senior Management in compliance?
a)
Supervising outsourced activities
b)
Monitoring compliance risk and implementing policies
c)
Both a and b
d)
None of the above
17.
What does non-compliance by an employee lead to?
a)
Immediate promotion
b)
Determination of accountability and possible disciplinary action
c)
Automatic exemption from future responsibilities
d)
Formal appreciation
18.
What is the key attribute of the Compliance function?
a)
Operational control over all departments
b)
Independence from other business responsibilities
c)
Financial management of the Bank
d)
External audit roles
19.
What authority does the Compliance function have?
a)
Access to all records and files
b)
Conducting investigations on policy breaches
c)
Communicating with any staff member
d)
All of the above
20.
Which of the following is NOT a department reporting to the Compliance function?
a)
Risk Management
b)
Anti-Money Laundering
c)
Fraud Risk Management
d)
Central Inspection & Audit Division
21.
What is emphasized as the key to building a compliance culture?
a)
Regular training, newsletters, and open communication
b)
Increased disciplinary measures
c)
Outsourcing compliance activities
d)
Ignoring compliance breaches
22.
What is the role of inspecting officers in rural and semi-urban branches?
a)
Penalize staff for non-compliance
b)
Guide and educate staff on compliance procedures
c)
Act as auditors for the branches
d)
Replace branch management during inspections
23.
What indicates knowledge deficiencies in compliance?
a)
Frequent compliance failures
b)
Lack of disciplinary actions
c)
High employee turnover
d)
All of the above
24.
What is the primary role of the Compliance function under the Compliance Framework?
a)
Reducing Compliance Risk by rectifying deficiencies
b)
Managing financial audits
c)
Overseeing all operational risks
d)
Limiting access to compliance data
25.
Who is responsible for converting regulatory changes into internal policies?
a)
Compliance Function
b)
Business functions/units
c)
External Auditors
d)
Board of Directors
26.
What tool is emphasized for effective compliance monitoring?
a)
Standard Operating Procedures (SOPs)
b)
Customer feedback reports
c)
Employee turnover rates
d)
Risk management software only
27.
Where is the Compliance Department of the Bank located?
a)
New Delhi
b)
Bengaluru
c)
Mumbai
d)
Hyderabad
28.
What is the minimum tenure for a Zonal Compliance Officer (ZCO)?
a)
1 year
b)
2 years
c)
3 years
d)
5 years
29.
Who ensures compliance in case of a one-man branch?
a)
Zonal Compliance Officer
b)
Regional Compliance Officer
c)
Branch Manager
d)
Compliance Department
30.
What percentage of KRA weightage is allocated to Compliance-related responsibilities for Nodal Officers in Treasury and TFBO?
a)
50
b)
75
c)
90
d)
100
31.
Who approves the appointment of a substitute Zonal Compliance Officer in case of an extended absence?
a)
CGM - Compliance / GM - Compliance
b)
Zonal Manager
c)
Head of HR Department
d)
Chief Compliance Officer
32.
Which department is responsible for ensuring RRBs comply with regulations?
a)
Treasury Department
b)
Domestic Subsidiaries & Joint Ventures Department
c)
RRB and RSETIs Department
d)
Regional Compliance Office
33.
What is the minimum grade required for a Zonal Compliance Officer (ZCO)?
a)
MMG/S-II
b)
SMG/S-IV
c)
MMG/S-III
d)
JMG/S-I
34.
Who appoints the Regional Compliance Officers (RCOs)?
a)
Zonal Manager
b)
Compliance Department through selection process
c)
Regional Compliance Department
d)
CGM - Risk Management
35.
What is the primary responsibility of the Compliance function at the branch level?
a)
Conducting audits
b)
Monitoring performance
c)
Acting as the first line of defense
d)
Preparing monthly compliance reports
36.
What is the minimum KRA weightage for compliance-related responsibilities for Nodal Officers in all verticals except Treasury and TFBO?
a)
30
b)
40
c)
50
d)
60
37.
To whom do the Nodal Officers at Treasury and TFBO directly report?
a)
Chief General Manager - Risk Management
b)
Chief Compliance Officer (CGCO)
c)
General Manager - Operations
d)
Zonal Compliance Officer
38.
How often must a Nodal Officer in each Vertical submit a compliance-related DO letter to the Chief Compliance Officer?
a)
Weekly
b)
Monthly
c)
Quarterly
d)
Annually
39.
What is the minimum tenure for a Regional Compliance Officer (RCO)?
a)
1 year
b)
2 years
c)
3 years
d)
5 years
40.
Who approves the deployment of a temporary Zonal Compliance Officer during an absence of more than seven days?
a)
Zonal Head
b)
Regional Compliance Officer
c)
CGM - Compliance / GM - Compliance
d)
Human Resources
41.
What additional work may a Nodal Officer in a Vertical be assigned?
a)
Any task, irrespective of conflicts of interest
b)
Work that does not lead to conflict of interest
c)
Compliance monitoring for branches
d)
Risk analysis for Treasury
42.
How often does the Board review the compliance function?
a)
Monthly
b)
Quarterly
c)
Bi-annually
d)
Annually
43.
To whom may the Board delegate tasks related to resolving compliance issues?
a)
Zonal Compliance Officer (ZCO)
b)
Audit Committee of the Board (ACB)
c)
Compliance Department Head
d)
Chief Financial Officer
44.
Who vets the quality of Supervisory/Regulatory compliance reports sent to RBI?
a)
Board of Directors
b)
Compliance Department Head
c)
Senior Management and/or Audit Committee of the Board (ACB)
d)
Zonal Compliance Officer
45.
How often should a detailed review of the compliance function be presented to the Board?
a)
Monthly
b)
Quarterly
c)
Annually
d)
Bi-annually
46.
. What is the minimum quorum required for a High-Level Compliance Committee meeting (excluding Chairperson and Convener)?
a)
3 members
b)
4 members
c)
5 members
d)
6 members
47.
What is the minimum fixed tenure for the appointment of a CGCO?
a)
1 year
b)
2 years
c)
3 years
d)
5 years
48.
What is the maximum age limit for appointment as CGCO?
a)
50 years
b)
55 years
c)
60 years
d)
No age limit
49.
Who is responsible for appointing the CGCO?
a)
MD & CEO directly
b)
High-Level Compliance Committee
c)
Senior Executive Level Selection Committee constituted by the Board
d)
RBI
50.
How often must the CGCO meet the Audit Committee of the Board on a one-to-one basis?
a)
Monthly
b)
Quarterly
c)
Annually
d)
As required by the Board
100 %
