Objective Questions & Answers: Part II
Bank Exam Preparation (Updated March 2026)
Section A: Islamic Finance & Quranic Terms
Q1 Islamic Finance
Infaq fi Sabilillah signifies?
Donation / expenditure for the satisfaction of Allah (spending in the way of Allah).
Q13 Islamic Finance
Verses of Muhkam are?
Clear-meaning verses of the Holy Quran — verses whose meaning is clear and unambiguous.
Q14 Islamic Finance
Verses of Mutashabih are?
Unclear / ambiguous meaning verses of the Holy Quran — verses whose meaning is not immediately apparent.
Q15 Islamic Finance
What are the 8 sectors (heads) of Zakat distribution?
- Fakir — Destitute (no income at all)
- Miskin — Poor (insufficient income)
- Amel — Zakat collectors / administrators
- Muallaf — To win over hearts (new Muslims or those inclined to Islam)
- Riqab — To set slaves / captives free
- Gharimin — To repay debts of those in debt
- Fi Sabilillah — In the path of Allah
- Ibn Sabil / Musafir — Stranded travellers
Section B: Credit & Banking Operations
Q2 Regulatory
Cluster investments are termed when investments are given amongst?
People of the same area for the same nature of business.
Cluster investment concentration is a credit risk concern monitored by Bangladesh Bank under the Large Loan and Concentration Risk framework.
Cluster investment concentration is a credit risk concern monitored by Bangladesh Bank under the Large Loan and Concentration Risk framework.
Q5 Regulatory
What is the General Provision requirement for unclassified amounts against House Finance?
2% — General provision on unclassified house finance loans.
✓ Updated: BRPD Master Circular No. 15 dated 27 November 2024 supersedes all earlier circulars on this subject. ECL methodology under IFRS 9 to be implemented by 2027.
| Loan Category | General Provision Rate (Latest: BRPD Circular No. 15, 27 Nov 2024) |
|---|---|
| STD-0, STD-1, STD-2 (Standard Loans) | 1% |
| SMA (Special Mention Account) | 5% |
| House Finance (unclassified) | 2% |
| Consumer Finance (unclassified) | 5% |
| Loans to Brokerage / Merchant Banks / Stock Dealers | 1% (revised down from 2% per BRPD Circular 03/2023) |
| Off-Balance Sheet Items | 1% |
| Sub-Standard (SS) | 20% (specific provision) |
| Doubtful (DF) | 50% (specific provision) |
| Bad / Loss (B/L) | 100% (specific provision) |
Q12 Regulatory
Amount recovered from written-off investment goes to?
Income Account of the Bank — recovered amounts from previously written-off loans/investments are credited to income.
Q19 Islamic Finance
What is Bai-Muajjal? What is a Forced Loan in conventional banking?
Bai-Muajjal: A deferred payment sale. Bangladesh Bank's FC Bills (earlier called BIAM Bills in Islamic banking context) — when the importer/client fails to make payment and the proceeds fail to return to the bank, a forced loan is created and payment is made by the bank on the client's behalf.
Forced Loan (Conventional): When back-to-bank proceeds fail (e.g., L/C payment not received), the bank creates a forced loan against the importer to recover the outstanding amount.
Forced Loan (Conventional): When back-to-bank proceeds fail (e.g., L/C payment not received), the bank creates a forced loan against the importer to recover the outstanding amount.
Section C: Trade Finance & Laws
Q7 Regulatory
UCP 600 came into effect from?
1 July 2007
UCP 600 = Uniform Customs and Practice for Documentary Credits, 600th revision, published by the International Chamber of Commerce (ICC). It governs Letters of Credit (L/C) transactions globally.
UCP 600 = Uniform Customs and Practice for Documentary Credits, 600th revision, published by the International Chamber of Commerce (ICC). It governs Letters of Credit (L/C) transactions globally.
Q8 Regulatory
The Bill of Lading Act was enacted in?
1856
Q9 Regulatory
The Imports and Exports (Control) Act was enacted in?
1950
Q10 Regulatory
The Importers, Exporters and Indentors (Registration) Order was enacted in?
1981
Section D: Monetary Policy & MPS
Q3 General
MPS stands for?
Monetary Policy Statement
Bangladesh Bank issues the MPS bi-annually (January and July) to announce its monetary stance — including policy repo rate, reverse repo rate, inflation targets, and private sector credit growth targets.
✓ Verify latest rates from bb.org.bd — rates are subject to change with each MPS announcement.
Bangladesh Bank issues the MPS bi-annually (January and July) to announce its monetary stance — including policy repo rate, reverse repo rate, inflation targets, and private sector credit growth targets.
| MPS Indicator | Latest Position (BB MPS, February 2026) |
|---|---|
| Policy Repo Rate | 10.00% |
| Reverse Repo (Standing Deposit Facility) | 8.50% |
| Bank Rate | 5.00% |
| CRR (Cash Reserve Ratio) | 4% (bi-weekly avg); min 3.5% daily |
| SLR — Conventional | 13% |
| SLR — Islamic Banks | 5.5% |
Q4 Regulatory
Stress testing is done for?
Internal Risk Management
Stress testing is conducted on a quarterly basis by all scheduled banks as per Bangladesh Bank guidelines. It assesses the bank's resilience to 5 key risk factors: Profit/Interest Rate, Forced Sale Value of Collateral, Non-Performing Investments (NPI/NPL), Equity/Share Prices, and Foreign Exchange Rate.
Stress testing is conducted on a quarterly basis by all scheduled banks as per Bangladesh Bank guidelines. It assesses the bank's resilience to 5 key risk factors: Profit/Interest Rate, Forced Sale Value of Collateral, Non-Performing Investments (NPI/NPL), Equity/Share Prices, and Foreign Exchange Rate.
Section E: Bangladesh Bank Payment & Settlement Systems (Updated 2025)
Q20 Payment Systems
What does BACH consist of? When did each component start?
The Bangladesh Automated Clearing House (BACH) consists of two components:
✓ Key 2023 Update: Original BEFTN replaced by Nikash-BEFTN (BB-developed software) from 12 November 2023 — now provides same-day fund settlement.
| Component | Full Form | Launch Date | Key Update |
|---|---|---|---|
| BACPS | Bangladesh Automated Cheque Processing System | 7 October 2010 | Replaced manual paper-based cheque clearing. Uses Cheque Truncation System (CTS) to convert physical cheques into digital images. |
| BEFTN | Bangladesh Electronic Funds Transfer Network | 28 February 2011 | First paperless interbank electronic funds transfer system. Upgraded to Nikash-BEFTN from 12 November 2023 — same-day settlement (replacing next-day). Supports G2P, payroll, dividends, IPO refunds, EMI, insurance premiums. |
Q21 Payment Systems
What are the BACH fees? What payment platforms does Bangladesh Bank operate?
BACH fee is charged per transaction for both BEFTN and BACPS transactions.
Bangladesh Bank's 5 main payment and settlement platforms:
✓ New 2024: Bangladesh Bank launched TakaPay (National Card Scheme) on 12 June 2024 — domestic card alternative to VISA/Mastercard, routed through NPSB.
✓ BD-RTGS upgraded November 2024 — 24/7 availability, improved UI, separate local & foreign currency windows, automatic customer credit confirmation.
Bangladesh Bank's 5 main payment and settlement platforms:
| Platform | Full Form | Purpose |
|---|---|---|
| BACPS | Bangladesh Automated Cheque Processing System | Cheque clearing (automated) |
| BEFTN / Nikash-BEFTN | Bangladesh Electronic Funds Transfer Network | Interbank electronic credit & debit transfers |
| BD-RTGS | Bangladesh Real Time Gross Settlement | High-value, time-critical payments (min BDT 1 lac). Upgraded November 2024 — now 24/7. 60 scheduled banks + 19 NBFIs connected (11,470+ online branches). |
| NPSB | National Payment Switch Bangladesh | Interbank ATM, POS, IBFT interoperability. 50+ banks connected as of 2024. |
| IDTP | Interoperable Digital Transaction Platform | MFS & digital payment interoperability |
Q21a Payment Systems
When was the National Payment Switch Bangladesh (NPSB) introduced by Bangladesh Bank?
Bangladesh Bank introduced the National Payment Switch Bangladesh (NPSB) in 2012 (launched 27 December 2012).
⚠ Old blog entry stated "BB introduced National Payment Switch on 27.12.2012" — this date is confirmed correct.
✓ 2025 Update: Standard Chartered Bangladesh announced full NPSB integration and Bangla QR support in 2025.
| NPSB Feature | Detail |
|---|---|
| Established | 2012 |
| Purpose | National interoperability for ATM, POS, and Internet Banking Fund Transfer (IBFT) across all banks |
| IBFT limit (Individual) | Max BDT 3,00,000 per transaction; Max BDT 10,00,000 per day; Max 10 transactions/day |
| IBFT limit (Corporate) | Max BDT 5,00,000 per transaction; Max BDT 25,00,000 per day; Max 20 transactions/day |
| Security | Two-Factor Authentication (2FA) mandatory for all online/e-commerce/card-not-present transactions |
| Banks connected (2024) | 50+ banks and financial institutions |
Q21b Payment Systems
When did Mercantile Bank PLC start mobile banking?
Mercantile Bank PLC offers mobile banking through its MBL Rainbow app — the bank's official digital banking platform available on Android and iOS.
Other digital channels: i-Banking (internet banking), MBL CorporatePay (corporate payment platform), MBL e-KYC, SMS Alert Service.
Other digital channels: i-Banking (internet banking), MBL CorporatePay (corporate payment platform), MBL e-KYC, SMS Alert Service.
Section F: Credit Rating Agencies (ECAIs)
Q16 Regulatory
How many Credit Rating Agencies (ECAIs) are there in Bangladesh? Name all of them.
Total 8 External Credit Assessment Institutions (ECAIs) recognised by Bangladesh Bank — 5 domestic (BSEC-licensed) and 3 international.
All 8 Domestic ECAIs (BSEC-licensed):
International ECAIs (3) — recognised by Bangladesh Bank for Basel III risk weighting:
✓ Source: BSEC official list — sec.gov.bd/home/cragency (verified March 2026).
All 8 Domestic ECAIs (BSEC-licensed):
| # | Full Name | Short Form | Licensed Since |
|---|---|---|---|
| 1 | Credit Rating Information and Services Limited | CRISL | 21 Apr 2002 |
| 2 | Credit Rating Agency of Bangladesh Limited | CRAB | 24 Feb 2004 |
| 3 | Emerging Credit Rating Limited | ECRL | 22 Jun 2010 |
| 4 | National Credit Ratings Limited | NCR | 22 Jun 2010 |
| 5 | ARGUS Credit Rating Services Limited | ARGUS | 21 Jul 2011 |
| 6 | Alpha Credit Rating Limited | Alpha CRL | 20 Feb 2012 |
| 7 | The Bangladesh Rating Agency Limited | BDRAL | 07 Mar 2012 |
| 8 | WASO Credit Rating Company (BD) Limited | WASO | 15 Feb 2012 |
| # | Name | Short Form |
|---|---|---|
| 1 | Moody's Investors Service | Moody's |
| 2 | Standard & Poor's | S&P |
| 3 | Fitch Ratings | Fitch |
Section G: Mercantile Bank PLC — Key Facts (March 2026)
MBL-1 MBL-Specific
What is the contact centre number of Mercantile Bank PLC?
16225
Overseas / T&T: +88 09678016225 | Email: contact@mblbd.com
Overseas / T&T: +88 09678016225 | Email: contact@mblbd.com
MBL-2 MBL-Specific
What is the current network footprint of Mercantile Bank PLC?
| Network Type | Count (March 2026) |
|---|---|
| Branches | 153 |
| Sub-Branches (Uposhakha) | 48 |
| Islamic Banking Windows (MBL-Taqwa) | 45 |
| Offshore Banking Units (OBU) | 2 |
| Agent Banking Outlets | 188+ |
| ATMs | 197+ |
MBL-3 MBL-Specific
What is the Head Office address and key identifiers of Mercantile Bank PLC?
61, Dilkusha Commercial Area, Dhaka-1000
Phone: +88-02-223382295 | SWIFT: MBLBBDDH | Website: www.mblbd.com
Incorporated: 20 May 1999 | Operations commenced: 02 June 1999
Renamed to MBL PLC: 27 August 2023
DSE Ticker: MERCANBANK
Phone: +88-02-223382295 | SWIFT: MBLBBDDH | Website: www.mblbd.com
Incorporated: 20 May 1999 | Operations commenced: 02 June 1999
Renamed to MBL PLC: 27 August 2023
DSE Ticker: MERCANBANK
MBL-4 MBL-Specific
What are the subsidiaries of Mercantile Bank PLC?
- Mercantile Bank Securities Limited (MBSL) — stock broking & dealing; formed 27 June 2010, commenced 14 September 2011
- Mercantile Exchange House (UK) Limited — incorporated 01 December 2010, commenced 06 December 2011
- MBL Asset Management Limited (MBLAML) — asset management
Supplementary: Bangladesh Payment Systems — Quick Reference Table
| System | Full Form | Launch Year | Key Fact (Latest) |
|---|---|---|---|
| BACPS | Bangladesh Automated Cheque Processing System | October 2010 | Replaced manual cheque clearing; uses CTS (Cheque Truncation System) |
| BEFTN | Bangladesh Electronic Funds Transfer Network | 28 Feb 2011 | Upgraded to Nikash-BEFTN from 12 November 2023 — same-day settlement |
| NPSB | National Payment Switch Bangladesh | 27 Dec 2012 | 50+ banks connected; ATM, POS, IBFT interoperability; 2FA mandatory |
| BD-RTGS | Bangladesh Real Time Gross Settlement | October 2015 | Min BDT 1 lac; upgraded Nov 2024 — 24/7; 11,470+ branches connected |
| TakaPay | National Card Scheme (Bangladesh) | 12 June 2024 | Domestic card alternative to VISA/Mastercard; routed through NPSB |
| IDTP | Interoperable Digital Transaction Platform | Recent | MFS & digital payment interoperability platform |
| Bangla QR | Bangladesh QR Code Payment | Recent | Unified QR code standard for merchant payments in Bangladesh |
Supplementary: Loan Classification & Provisioning — Quick Reference
Source: BRPD Master Circular No. 15 dated 27 November 2024 (supersedes BRPD Circular No. 14/2012 and all subsequent circulars on this subject)
| Classification | Category | Provision Rate |
|---|---|---|
| STD-0 / STD-1 / STD-2 | Standard (Unclassified) — General | 1% |
| House Finance (unclassified) | Standard — General | 2% |
| Consumer Finance (unclassified) | Standard — General | 5% |
| SMA | Special Mention Account — General | 5% |
| Off-Balance Sheet Items | General Provision | 1% |
| SS (Sub-Standard) | Classified — Specific | 20% |
| DF (Doubtful) | Classified — Specific | 50% |
| B/L (Bad / Loss) | Classified — Specific | 100% |
✓ ECL methodology under IFRS 9 to replace current provisioning system — implementation target: 2027 (Bangladesh Bank)
Exam-Ready One-Liner: Contact: 16225 | 153 branches | 48 sub-branches | SWIFT: MBLBBDDH | Islamic Window: MBL-Taqwa | Payment Systems: BACPS (2010), Nikash-BEFTN (2023), NPSB (2012), BD-RTGS (2015), TakaPay (2024) | Provision: House Finance 2%, SMA 5%, B/L 100% | Updated March 2026.
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