Topic-wise MCQs (20+ each)

(Total MCQs: 210)
✔ Memory-based
✔ Tentative but accurate
✔ CAIIB-style
✔ One-line answers included

🟪 1. Compliance Function in Banks (MCQs – 25)

1. The primary objective of the Compliance Function is to ensure adherence to ___?
   Ans: Regulatory requirements

2. Compliance Policy in banks must be approved by ___?
   Ans: Board of Directors

3. The head of Compliance Function is known as ___?
   Ans: Chief Compliance Officer

4. CCO must report directly to ___?
   Ans: MD & CEO/Board

5. The scope of Compliance Function covers ___?
   Ans: All business activities

6. Compliance Programme ensures ___?
   Ans: Ongoing adherence

7. Key principle of compliance is ___?
   Ans: Proactiveness

8. Compliance procedures are part of ___?
   Ans: Internal control system

9. Who ensures implementation of Compliance Policy?
   Ans: Senior Management

10. CCO should have a minimum of ___ years of experience?
    Ans: 15 years

11. Compliance Function is a part of which line of defence?
    Ans: Second line

12. Regulatory compliance is monitored by ___?
    Ans: RBI

13. Compliance risk arises due to ___?
    Ans: Non-adherence

14. Internal compliance reporting is submitted to ___?
    Ans: Audit Committee

15. CCO should not be part of ___ functions.
    Ans: Business

16. Compliance testing ensures ___?
    Ans: Effectiveness of controls

17. Compliance breaches must be reported within ___?
    Ans: 24 hours

18. CCO is responsible for ___?
    Ans: Regulatory liaison

19. Compliance training is mandatory for ___ staff?
    Ans: All

20. Compliance Function prevents ___?
    Ans: Penalties

21. Compliance Monitoring evaluates ___?
    Ans: Adherence level

22. CCO tenure should be minimum ___ years?
    Ans: 3 years

23. Compliance Unit must be ___?
    Ans: Independent

24. Compliance Risk is part of ___ risk?
    Ans: Operational

25. CCO must have direct access to ___?
    Ans: Board/Audit Committee

🟨 2. Compliance Audit (MCQs – 25)

1. Compliance Audit ensures adherence to ___?
   Ans: Laws and regulations

2. RBI mandates banks to follow ___ audit approach.
   Ans: Risk-based

3. Who performs Compliance Audit?
   Ans: Internal Audit

4. Reporting of audit findings goes to ___?
   Ans: Audit Committee

5. SEBI Listing Regulations apply to ___ companies?
   Ans: Listed

6. Accounting standards in India are issued by ___?
   Ans: ICAI

7. Compliance Audit frequency is usually ___?
   Ans: Annual

8. Inspection reports must be shared with ___?
   Ans: Board

9. RISK-based audit focuses on ___?
   Ans: Areas with high risk

10. Compliance lapses are reported as ___?
    Ans: Exceptions

11. Monitoring compliance is responsibility of ___?
    Ans: CCO

12. Listing disclosure norms are governed by ___?
    Ans: SEBI

13. Compliance Audit ensures transparency in ___?
    Ans: Operations

14. Accounting irregularities are tracked under ___ audits.
    Ans: Financial

15. Internal controls are assessed during ___ audit.
    Ans: Compliance audit

16. Auditor independence improves ___?
    Ans: Objectivity

17. Regulatory reporting accuracy is checked by ___?
    Ans: Compliance Audit

18. Non-compliance is classified as ___?
    Ans: Risk events

19. KYC breaches fall under ___ audit exceptions.
    Ans: Compliance

20. The role of inspection is performed by ___?
    Ans: RBI

21. Errors in financial statements relate to violation of ___?
    Ans: Accounting Standards

22. Compliance Audit prevents ___ risk?
    Ans: Reputational

23. Monitoring Framework ensures ___?
    Ans: Timely compliance

24. SEBI LODR emphasizes ___?
    Ans: Corporate transparency

25. Audit observations must be closed through ___?
    Ans: Action Taken Report

🟦 3. Compliance Governance Structure (MCQs – 25)

1. Governance structure starts with ___ level.
   Ans: Board

2. Senior Management oversees ___ compliance?
   Ans: Functional

3. Corporate Office handles ___ compliance structure.
   Ans: Centralised

4. Field level compliance is monitored by ___?
   Ans: Branch Managers

5. Internal Controls help in reducing ___?
   Ans: Operational risk

6. Compliance Governance ensures ___?
   Ans: Accountability

7. Independent Review is a part of ___?
   Ans: Governance

8. Board’s duty includes approving ___?
   Ans: Compliance Policy

9. Compliance ownership lies with ___?
   Ans: Business Lines

10. Corporate Office consolidates compliance ___?
    Ans: Reporting

11. Internal Controls include ___?
    Ans: Segregation of duties

12. Field function compliance is overseen by ___?
    Ans: Zonal Office

13. Governance framework avoids ___?
    Ans: Conflicts

14. CCO plays a role in ___ governance?
    Ans: Compliance

15. Internal controls ensure ___?
    Ans: Process discipline

16. Responsibilities of Board include ___?
    Ans: Oversight

17. Functional departments must ensure ___ compliance.
    Ans: Regulatory

18. Escalation of compliance issues is done to ___?
    Ans: Senior Management

19. Governance structure supports ___?
    Ans: Risk management

20. Management ensures implementation of ___?
    Ans: Controls

21. Corporate Governance improves ___?
    Ans: Transparency

22. Internal control failure leads to ___?
    Ans: Compliance breach

23. Field-level control includes ___?
    Ans: Surprise checks

24. Policy deviations must be ___?
    Ans: Reported

25. Compliance Governance reduces ___?
    Ans: Fraud

🟫 4. Identification of Compliance Issues & Risks (MCQs – 25)

1. Compliance Issues arise from breach of ___?
   Ans: Rules

2. Compliance Risk is part of ___?
   Ans: Operational risk

3. Inherent Risk exists ___ controls.
   Ans: Before

4. Control Risk remains ___ controls.
   Ans: After

5. Independent Testing ensures ___?
   Ans: Control effectiveness

6. Credit Audit is part of ___ mechanism?
   Ans: Loan Review Mechanism

7. Compliance Reporting improves ___?
   Ans: Monitoring

8. High compliance risk leads to ___?
   Ans: Penalties

9. Good compliance supports ___?
   Ans: Reputation

10. Audit Programme verifies ___?
    Ans: Controls

11. Loan Review focuses on ___?
    Ans: Credit quality

12. Compliance Issues must be escalated ___?
    Ans: Immediately

13. Inherent risk cannot be ___?
    Ans: Eliminated

14. Control risk can be ___?
    Ans: Reduced

15. Monitoring Framework includes ___?
    Ans: Reporting

16. Inspection plays role in ___?
    Ans: Detecting breaches

17. Compliance risk arises due to ___?
    Ans: Violations

18. Effective compliance reduces ___ risk.
    Ans: Reputational

19. Audit ensures ___?
    Ans: Policy adherence

20. Credit Audit checks ___?
    Ans: Loan documentation

21. Independent testing is performed by ___?
    Ans: Internal Audit

22. Compliance Issue = Deviation from ___?
    Ans: Norms

23. Compliance risk increases with ___ complexity.
    Ans: Regulatory

24. Loan Review prevents ___?
    Ans: NPA formation

25. Good compliance reduces ___?
    Ans: Regulatory burden

🟧 5. Compliance Culture & GRC Framework (MCQs – 25)

1. Compliance Culture is built through ___?
   Ans: Training

2. GRC stands for ___?
   Ans: Governance, Risk & Compliance

3. Whistle-blower policy promotes ___?
   Ans: Transparency

4. One reason for compliance failure is ___?
   Ans: Lack of training

5. GRC Framework integrates ___ systems.
   Ans: Controls

6. Whistle-blower protects ___?
   Ans: Employees

7. Compliance culture prevents ___?
   Ans: Violations

8. GRC benefits include ___?
   Ans: Better decision-making

9. Components of whistle-blower policy include ___?
   Ans: Confidentiality

10. GRC reduces ___?
    Ans: Risks

11. Compliance failure leads to ___?
    Ans: Penalties

12. Effective GRC enhances ___?
    Ans: Governance

13. Whistle-blower mechanism ensures ___?
    Ans: Ethical practices

14. Culture is driven by ___?
    Ans: Leadership

15. Non-reporting culture leads to ___?
    Ans: Hidden risks

16. GRC enables ___ visibility.
    Ans: Risk

17. Whistle-blower anonymity protects against ___?
    Ans: Retaliation

18. GRC aligns compliance with ___?
    Ans: Strategy

19. Compliance culture demands ___ communication.
    Ans: Clear

20. GRC avoids ___ silos.
    Ans: Functional

21. Whistle-blowing should be ___?
    Ans: Encouraged

22. Compliance culture improves ___?
    Ans: Integrity

23. GRC reporting goes to ___?
    Ans: Board

24. Weak culture causes ___?
    Ans: Fraud

25. GRC improves ___?
    Ans: Operational efficiency

🟩 6. Compliance in NBFCs & CCO Role (MCQs – 25)

1. NBFC regulations follow ___ based regulation?
   Ans: Scale-based

2. NBFC-UL stands for ___?
   Ans: Upper Layer

3. NBFC-ML stands for ___?
   Ans: Middle Layer

4. CCO in NBFC must be ___?
   Ans: Independent

5. NBFC compliance is monitored by ___?
   Ans: RBI

6. Transition Path applies to ___?
   Ans: NBFC classification

7. NBFC-UL must appoint CCO with ___ years experience.
   Ans: 15

8. NBFCs must establish ___ Compliance Function.
   Ans: Separate

9. NBFC-ML requires ___ level compliance monitoring.
   Ans: Risk-based

10. CCO must report to ___?
    Ans: Board

11. Compliance risk in NBFCs is higher due to ___?
    Ans: Business complexity

12. Framework ensures ___ adherence.
    Ans: Regulatory

13. CCO must not handle ___?
    Ans: Business functions

14. NBFC-UL must have Board-approved ___ Policy.
    Ans: Compliance

15. Compliance testing in NBFCs is done ___?
    Ans: Periodically

16. NBFCs must focus on ___ risk management.
    Ans: Compliance

17. RBI categorises NBFCs into ___ layers.
    Ans: Four

18. Top NBFCs fall under ___?
    Ans: Upper Layer

19. NBFC CCO must monitor ___ lapses.
    Ans: Compliance

20. Regulatory actions for NBFCs fall under ___?
    Ans: RBI

21. Compliance Programme in NBFCs includes ___?
    Ans: Monitoring

22. NBFCs must avoid ___ risks.
    Ans: Regulatory

23. NBFC-UL requires ___ reporting.
    Ans: Enhanced

24. NBFC CCO ensures ___?
    Ans: Regulatory alignment

25. CCO provides independent ___?
    Ans: Assurance

🟥 7. Fraud & Vigilance in Banks (MCQs – 30)

1. Fraud means ___?
   Ans: Intentional deception

2. Forgery means ___?
   Ans: Fraudulent alteration

3. KYC fraud is a ___ fraud.
   Ans: Banking

4. Cyber fraud involves ___?
   Ans: Digital channels

5. Fraud monitoring uses ___ system?
   Ans: Early Warning

6. Vigilance function prevents ___?
   Ans: Misconduct

7. Fraud reporting to RBI is done via ___?
   Ans: FMR

8. Staff fraud is categorized as ___?
   Ans: Internal

9. Loan fraud is detected during ___?
   Ans: Credit Audit

10. High-value frauds must be reported within ___?
    Ans: 21 days

11. Cyber fraud includes ___?
    Ans: Phishing

12. ATM skimming is ___ fraud.
    Ans: Cyber

13. Vigilance investigates ___?
    Ans: Misconduct

14. Fraud risk is part of ___?
    Ans: Operational risk

15. Fraud monitoring uses ___ alerts.
    Ans: Transaction

16. RBI issues guidelines under ___ framework.
    Ans: FFFF

17. Fraud classification based on ___?
    Ans: Modus operandi

18. Fraud Triangle includes ___?
    Ans: Pressure

19. Fraudulent accounts are reported under ___?
    Ans: CRILC

20. Staff vigilance is overseen by ___?
    Ans: CVO

21. Cyber fraud investigations require ___?
    Ans: Forensics

22. Loan frauds arise from ___?
    Ans: Documentation lapses

23. Fraud red flags indicate ___?
    Ans: Suspicion

24. Reporting entity is ___?
    Ans: Bank

25. Fraud of ₹1 crore+ is classified as ___?
    Ans: Major

26. Whistle-blower helps prevent ___?
    Ans: Fraud

27. Branch vigilance ensures ___?
    Ans: Discipline

28. Fraud reporting is mandatory under ___?
    Ans: RBI

29. Root cause analysis prevents ___?
    Ans: Recurrence

30. Cyber fraud increases due to ___?
    Ans: Digital adoption