Exams › IBPS PO › General Awareness › Banking and Financial Awareness
57 questions with worked solutions.
Answer: Leveraging
In ALeRTS, the letter ‘L’ stands for ‘Leveraging’. The question refers to SEBI’s advisory council focused on regulatory and technological solutions.
Q2. Immediate Payment Service (IMPS) was publicly launched on
Answer: 22nd November 2010
IMPS was publicly launched on 22 November 2010. It is an instant interbank electronic funds transfer system in India.
Answer: Demat
CDSL is a depository, so the relevant accounts are demat accounts. It became the first and only listed depository in India to cross 60 million demat accounts.
Q4. Which committee is associated with banking sector reforms in India?
Answer: Narasimham Committee
The Narasimham Committee is best known for recommending banking sector reforms in India. It dealt with issues like capital adequacy, prudential norms, and financial sector liberalization.
Q5. What is the full form of IFSC?
Answer: Indian Financial System Code
IFSC stands for Indian Financial System Code. It is used to uniquely identify bank branches for electronic payment systems such as NEFT and RTGS.
Answer: 2 and 3 only
The scheme provides incentives to banks for promoting RuPay debit cards and low-value BHIM-UPI transactions, and the incentive is linked to the value of eligible transactions. The government incentive is not subject to GST, so statements 2 and 3 are correct.
Q7. What is the full form of CVV?
Answer: Card Verification Value
CVV stands for Card Verification Value. It is the security code used to verify card-not-present transactions.
Answer: Directorate of Revenue Intelligence
The RBI asked Authorised Dealer-I banks to share relevant foreign exchange data with the Directorate of Revenue Intelligence. This helps in monitoring and investigating possible violations related to foreign exchange and revenue.
Answer: 5 per cent
The RBI's third bi-monthly monetary policy review projected inflation in India for 2019-20 at up to 5 per cent. This is a standard banking awareness fact from RBI policy updates.
Answer: Usage
The Financial Inclusion Index is built from three broad parameters: access, usage, and quality. In March 2024, the largest increase in the index came from the usage parameter, indicating improved utilization of financial services.
Q11. Who is an angel investor as described in the passage?
Answer: An individual who provides capital for a business start-up
An angel investor is a person who invests their own money in an early-stage business or startup. They usually provide capital in exchange for ownership equity or convertible debt. This is different from a bank officer, auditor, or stockbroker.
Answer: 60% and 100%
The question refers to the limits under the Companies Act for loans, guarantees, securities, and investments by a company. The correct threshold is 60% of paid-up share capital, free reserves and securities premium account, or 100% of free reserves and securities premium account, whichever is more.
Answer: USD 2,50,000
Under the Liberalized Remittance Scheme, resident individuals can remit up to USD 2,50,000 per financial year for permissible current or capital account transactions. This is a standard RBI banking awareness fact.
Answer: Japan
Nippon Life Insurance is a Japanese company. After acquiring a majority stake, the mutual fund was renamed to reflect the new ownership.
Answer: Shishu
Under the Pradhan Mantri MUDRA Yojana, loans are classified as Shishu, Kishor, and Tarun. Shishu is the category for the smallest loans, up to ₹50,000.
Q16. Which of the following statements about IFSCA is incorrect?
Answer: The IFSCA does not have the authority to develop and regulate international bullion exchanges in India.
IFSCA is the unified regulator for financial products, services, and institutions in IFSCs, and its powers include regulation of various markets and products. The statement denying authority over international bullion exchanges is incorrect because such powers are within its regulatory framework.
Answer: ₹50,000 Crore
The Union Budget 2022–23 announced a special allocation under ECLGS for the hospitality sector to support recovery. The amount was ₹50,000 crore.
Q18. What is the limit of the Liberalized Remittance Scheme (LRS)?
Answer: USD 2,50,000
Under the Liberalized Remittance Scheme, resident individuals can remit up to USD 2,50,000 per financial year for permitted current and capital account transactions. This is the standard RBI-prescribed limit.
Answer: ₹20 lakh
In Union Budget 2024-25, the maximum loan amount under the Tarun category of PMMY was increased. The revised limit is ₹20 lakh, replacing the earlier lower ceiling.
Q20. As per the Container Port Performance Index (CPPI), how many Indian ports are ranked in the top 100?
Answer: 9
The CPPI is a global ranking of port performance. As per the referenced current affairs data, 9 Indian ports are ranked in the top 100.
Answer: ₹5 lakh
In the August 2024 RBI MPC meeting, the UPI limit for tax payments was enhanced from ₹1 lakh to ₹5 lakh. This was a specific relaxation for tax-related transactions, not for all UPI payments.
Answer: 3 months
As per RBI guidelines effective from April 1, 2012, cheques, drafts, and pay orders are valid for 3 months from the date of issue. The earlier validity period was 6 months.
Q23. What is the maximum deposit limit per customer in payments banks as per RBI guidelines?
Answer: ₹2 lakh
As per RBI guidelines, the maximum deposit limit per customer in payments banks is ₹2 lakh. This is the regulatory cap applicable to such accounts.
Answer: SIDBI
The Fund of Funds for Startups is managed by SIDBI, which acts as the implementing agency. SEBI regulates the AIF framework, but it does not manage the fund. Hence, SIDBI is correct.
Q25. Pradhan Mantri MUDRA Yojana (PMMY) is a subsidiary of which of the following?
Answer: Small Industries Development Bank of India
PMMY is implemented through MUDRA, which was set up as a subsidiary of SIDBI. SIDBI supports micro, small, and medium enterprises through refinancing and development initiatives.
Q26. Which of the following departments launched the Rural Postal Life Insurance (RPLI)?
Answer: Department of Post
Rural Postal Life Insurance is a scheme run through India Post. Therefore, it is launched and administered by the Department of Posts.
Answer: One97 Communications
Paytm is the consumer-facing brand, while its parent company is One97 Communications. The other options are unrelated companies or incorrect names.
Answer: IDBI Bank
IDBI Bank has been in the news for government-approved capital infusion as part of support and restructuring measures. The other options are private-sector banks and do not match the stated government infusion news.
Q29. Why can Central Bank Digital Currency not solve the RBI's problem?
Answer: Because CBDC is a fiat currency and cannot be used for transactions as cryptocurrency.
CBDC is issued by the central bank and is therefore a fiat currency backed by the state. The passage argues that cryptocurrencies are decentralized and function differently, so a CBDC cannot replace or solve the issues created by crypto assets.
Answer: Rs 5,000 crore
Under the RBI Internal Ombudsman framework, larger NBFC-NDs are required to appoint an internal ombudsman once they cross the specified asset-size threshold. The correct threshold among the options is Rs 5,000 crore.
Q31. RBI had decided to increase the policy interest rates in a bid to curb accelerating inflation.
Answer: No replacement required
The sentence is grammatically correct as written. The phrase "in a bid to" is correctly followed by the infinitive "curb," and "accelerating inflation" is also appropriate.
Answer: 60
Nippon Life Insurance acquired a 60% stake in Reliance Nippon Life Asset Management, after which Reliance Mutual Fund was renamed Nippon India Mutual Fund. The question asks for that stake percentage.
Answer: SARFAESI Act - 2005
The SARFAESI Act was enacted in 2002, not 2005. The other options are correctly matched with their respective years. Hence, the incorrect statement is 'SARFAESI Act - 2005'.
Answer: National Accreditation Board for Testing and Calibration Laboratories.
NABL is the national accreditation body for testing and calibration laboratories in India. The full form is National Accreditation Board for Testing and Calibration Laboratories.
Answer: Only 2
Under RBI guidelines for P2P lending, a lender cannot lend more than the prescribed aggregate limit across platforms, and a borrower cannot borrow beyond the specified overall cap. The statement about lending up to 50,000 to a single borrower on a single platform is correct. Hence, only statement 2 is true.
Answer: Retailer Centricity
The RBI-DPI includes parameters such as payment enablers, payment infrastructure demand-side factors, payment infrastructure supply-side factors, payment performance, and payment usage. 'Retailer Centricity' is not one of the official parameters. Therefore, it is the correct answer.
Answer: No interest is paid
Cash Reserve Ratio is the portion of deposits banks must keep with the RBI as a statutory reserve. RBI does not pay interest on CRR balances. Therefore, the correct answer is that no interest is paid.
Q38. What is the current reverse repo rate of the Reserve Bank of India (RBI)?
Answer: 6.25%
The reverse repo rate is the rate at which the RBI borrows money from commercial banks. Among the given options, 6.25% is the correct rate.
Q39. Which international financial institution launched 'Bond-i', the world’s first blockchain bond?
Answer: World Bank
Bond-i, the world’s first blockchain bond, was launched by the World Bank. It is associated with the bank’s efforts to use technology in capital markets.
Q40. The PMMY loans granted for allied activities to agriculture can be covered under
Answer: CGFF
PMMY loans for allied activities to agriculture are covered under the Credit Guarantee Fund for Micro Units (CGFMU), but among the given options the intended correct expansion is CGFF as used in the question’s source. The question is testing the scheme linked to Mudra loans and allied agricultural activities.
Q41. The government has recently increased the deadline for NCLT resolution from 270 days to
Answer: 365
The NCLT resolution deadline was increased from 270 days to 365 days. This is a common current-affairs fact related to insolvency resolution timelines.
Q42. What is the minimum capital requirement for small finance banks in India?
Answer: ₹100 crore
The minimum capital requirement for setting up a small finance bank in India is ₹100 crore. This is the prescribed RBI norm for this category.
Answer: On tap
RBI's "on tap" licensing regime allows eligible applicants to apply for a bank licence at any time, unlike a one-time window. The question refers to this flexible expansion model for small finance banks.
Q44. What is the latest interest rate offered under the Senior Citizen Savings Scheme?
Answer: 7.40%
The Senior Citizen Savings Scheme currently offers 7.40% interest. This is a standard small savings rate asked in banking awareness.
Answer: 150 Million
ADB approved a loan of 150 million dollars for the water supply and sanitation project in Uttarakhand on 29 November 2021. This was reported as part of development financing for infrastructure improvement.
Answer: 2
In banking, a savings or current account is generally treated as dormant/inoperative if there are no customer-induced transactions for 2 years. This is the standard RBI-related rule used in such questions.
Q47. Which of the following payments banks launched the 'Bharosa Savings Account' in September 2019?
Answer: Airtel Payments Bank
Airtel Payments Bank launched the 'Bharosa Savings Account' in September 2019. Such questions test awareness of banking products and recent launches.
Q48. Which bank is seeking a Singapore bank licence to open its first branch in the country?
Answer: HDFC Bank
HDFC Bank was reported to be seeking a Singapore bank licence to open its first branch in the country. This is a banking-current-affairs question about international expansion.
Answer: 10,000 crores
In the Union Budget 2018–19, the Government announced the Agri-Market Infrastructure Fund with a corpus of ₹10,000 crores. It was intended to improve agricultural marketing infrastructure in GrAMs and APMCs.
Q50. Which among the following is/are NOT correct regarding Treasury Bills?
Answer: All 1, 2 and 3
Treasury Bills are low-risk money market instruments issued only by the central government, not state governments. Their maturity is typically up to 364 days, not 180 days as stated here. Therefore, all three statements are incorrect.