Questions on Basic terminology of IP Modernisation project - Exercise 1

 Postal Assistant/ Postmen/MTS Examination – Refresh on Post Office Savings Account (SB) -1

1. What is the minimum deposit amount required to open a Post Office Savings Account?
 a) ₹100 b) ₹250 c) ₹500 d) ₹1000 
Answer: c) ₹500 

2. What is the minimum withdrawal amount from a Post Office Savings Account?
 a) ₹10 b) ₹50 c) ₹100 d) ₹500 
Answer: b) ₹50 

3. What is the current interest rate for a Post Office Savings Account as of December 1, 2011? 
a) 3% per annum b) 4% per annum c) 5% per annum d) 6% per annum 
Answer: b) 4% per annum 

4. How is interest calculated on a Post Office Savings Account? 
a) On the highest balance between the 10th and end of the month b) On the average daily balance c) On the minimum balance between the 10th of the month and end of the month d) On the closing balance of the month 
Answer: c) On the minimum balance between the 10th of the month and end of the month 

5. What happens if the balance in a Post Office Savings Account falls below ₹500 between the 10th and the last day of the month? 
a) A penalty is charged. b) No interest will be allowed for that month. c) The account is temporarily frozen. d) The account is automatically closed. 
Answer: b) No interest will be allowed for that month.

 
6. How much interest earned from all Savings Bank Accounts is exempted from taxable income under section 80TTA of the Income Tax Act? 

a) Up to ₹5,000 b) Up to ₹10,000 c) Up to ₹20,000 d) No exemption 
Answer: b) Up to ₹10,000 

7. When is a Post Office Savings Account treated as silent/dormant? 

a) If no deposit/withdrawal takes place for one financial year. b) If no deposit/withdrawal takes place for two continuous financial years. c) If no deposit/withdrawal takes place for three continuous financial years. d) If the balance falls below the minimum required. 
Answer: c) If no deposit/withdrawal takes place in an account during continuous three financial years 

8. Can a single Post Office Savings Account be converted to a joint account? 

a) Yes b) No c) Only with a penalty d) Only after a year 
Answer: b) No 

9. Is nomination mandatory at the time of opening a Post Office Savings Account? 

a) No b) Yes c) Optional d) Only for joint accounts 
Answer: b) Yes 

10. What is the fee deducted as Account Maintenance Fee if the account balance does not raise to ₹500 at the end of the financial year?

 a) ₹10 b) ₹25 c) ₹50 d) ₹100 
Answer: c) ₹50 

5-Year Recurring Deposit Account (RD)
11. What is the minimum monthly deposit amount for a 5-Year Recurring Deposit Account? 

a) ₹50 b) ₹100 c) ₹250 d) ₹500 
Answer: b) ₹100 

12. What is the interest rate for a 5-Year Recurring Deposit Account from January 1, 2024? 

a) 6.0% per annum b) 6.5% per annum c) 6.7% per annum d) 7.0% per annum 
Answer: c) 6.7% per annum 

13. How much default charge is levied for a ₹100 denomination RD account if a subsequent deposit is not made on time?

 a) ₹1 b) ₹5 c) ₹10 d) ₹20 
Answer: a) ₹1 

14. How many regular defaults make an RD account discontinued?

 a) 2 b) 3 c) 4 d) 5 
Answer: c) 4 

15. What is the rebate for an advance deposit of 6 months for a ₹100 denomination RD account?

 a) ₹5 b) ₹10 c) ₹20 d) ₹40 
Answer: b) ₹10 

16. What is the minimum number of installments deposited to avail the loan facility in an RD account? 

a) 6 b) 10 c) 12 d) 18 
Answer: c) 12 

17. What is the interest rate applicable on a loan taken against an RD account? 

a) 1% + RD interest rate b) 2% + RD interest rate c) RD interest rate only d) Fixed at 8% 
Answer: b) 2% + RD interest rate 

18. After how many years from the date of opening can an RD account be prematurely closed? 

a) 1 year b) 2 years c) 3 years d) 5 years 
Answer: c) 3 years 

19. If an RD account is prematurely closed, what interest rate will be applicable?

 a) The original RD interest rate b) PO Savings Account interest rate c) 1% less than the RD interest rate d) No interest 
Answer: b) PO Savings Account interest rate 

20. For how many years can an RD account be extended after maturity?
 a) 1 year b) 2 years c) 3 years d) 5 years 
Answer: d) 5 years 

Monthly Income Scheme (MIS)
21. What is the minimum deposit amount for a Monthly Income Scheme (MIS) account? 

a) ₹500 b) ₹1,000 c) ₹5,000 d) ₹10,000 
Answer: b) ₹1,000 

22. What is the maximum deposit limit in a single MIS account? 

a) ₹4.5 lakh b) ₹9 lakh c) ₹15 lakh d) No maximum limit 
Answer: b) ₹9 lakh 

23. What is the maximum deposit limit in a Joint MIS account?

 a) ₹4.5 lakh b) ₹9 lakh c) ₹15 lakh d) No maximum limit 
Answer: c) ₹15 lakh 

24. What is the interest rate for an MIS account from January 1, 2024?

 a) 7.0% per annum b) 7.2% per annum c) 7.4% per annum d) 7.6% per annum 
Answer: c) 7.4% per annum 

25. How often is interest payable for an MIS account? 

a) Annually b) Half-yearly c) Quarterly d) Monthly 
Answer: d) Monthly 

26. If interest payable every month on an MIS account is not claimed, does it earn additional interest? 

a) Yes, compounded annually b) Yes, compounded monthly c) No d) Only if withdrawn later 
Answer: c) No 

27. What interest rate is applicable if an excess deposit is made in an MIS account? 

a) MIS interest rate b) PO Savings Account interest rate c) 1% less than MIS interest rate d) No interest 
Answer: b) PO Savings Account interest 

28. When can an MIS account not be prematurely closed?

 a) Before 6 months from the date of deposit b) Before 1 year from the date of deposit c) Before 2 years from the date of deposit d) Before 3 years from the date of deposit 
Answer: b) Before the expiry of 1 year from the date of deposit 

29. If an MIS account is closed after 1 year but before 3 years, what percentage of deduction is made from the principal? 

a) 1% b) 2% c) 3% d) 5% 
Answer: b) 2% 

30. What is the maturity period for an MIS account?

 a) 3 years b) 5 years c) 7 years d) 10 years 
Answer: b) 5 years