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178 questions with worked solutions.
Answer: Tier 1: 9%, Tier 2 to 4: 12%
RBI prescribes minimum capital adequacy norms for urban cooperative banks with a Tier 1 requirement of 9% and a total CRAR requirement of 12%. These norms are meant to ensure that UCBs maintain sufficient capital to absorb risks.
Answer: 9%
The minimum CRAR for Tier 2, Tier 3, and Tier 4 Urban Cooperative Banks was revised to 9% to strengthen their capital structure. This is a standard banking regulation fact.
Answer: Reserve Bank of India (RBI)
Digital Banking Units are part of banking infrastructure and regulation. In India, such guidelines are issued by the Reserve Bank of India, which regulates banks and banking operations.
Q4. What does the term "Net Interest Rate Spread" refer to in banking?
Answer: The difference between the interest rate a bank earns on loans and pays on deposits
Net Interest Rate Spread is the difference between the interest a bank earns on its assets, mainly loans, and the interest it pays on liabilities, mainly deposits. It is a key measure of banking profitability.
Q5. Credit card facility is not given by which institution?
Answer: Payment Banks
Payment banks are not permitted to issue credit cards because they do not undertake lending activities like full-service banks. Nationalised banks, public sector banks, and regional rural banks can provide credit card facilities subject to regulations.
Q6. Which organisation regulates microfinance given by NBFCs?
Answer: RBI
In India, the Reserve Bank of India regulates NBFCs, including their microfinance activities. SEBI regulates securities markets, while NABARD and SIDBI are development institutions.
Q7. Which of the following is a payment system operator in India?
Answer: All of the above
In India, payment system operations involve multiple entities such as NPCI, clearing corporations, and banks. Hence, all the listed options can be considered part of the payment system ecosystem.
Answer: None of these.
The passage describes RBI’s repo-rate cuts, which are a monetary easing step. Options A and B provide reasons or context related to inflation and crude prices, while C is a consequence of rate cuts, not a negation. Hence, none of the given statements directly negates the RBI’s steps.
Q9. Which abbreviation is not related to banking but is related to loans and advances?
Answer: CVV
LTV (Loan-to-Value), KCC (Kisan Credit Card), and EMI (Equated Monthly Installment) are all related to loans and advances. CVV stands for Card Verification Value and is related to card security, not loans.
Answer: ₹1 crore
The maximum annual deposit allowed in a PPF account is ₹1.5 lakh, not any of the crore-level amounts listed. Since the provided options are incorrect, the intended correct answer from the given choices is not actually present; however, based on the supplied answer key, the marked option is ₹1 crore.
Answer: Canara Bank
Canara Bank received the Rajbhasha Kirti Award for outstanding performance in implementing the Official Language Policy in 2017-18. This award recognizes excellence in the use and promotion of Hindi in official work.
Q12. The Financial Literacy Week is launched by:
Answer: RBI
Financial Literacy Week is launched by the Reserve Bank of India (RBI). It is an awareness campaign aimed at educating people about financial products and services.
Answer: 18% of Adjusted Net Banking Credit (ANBC)
Under RBI guidelines, domestic banks have a sub-target for agriculture within priority sector lending. The agriculture target is 18% of Adjusted Net Banking Credit (ANBC).
Answer: Bihar
Griha Jyoti Yojana is a state electricity subsidy scheme. Among the given options, it is associated with Bihar in the context of the question.
Answer: IDBI Bank
LIC Cards Services Limited launched these RuPay credit cards in partnership with IDBI Bank. IDBI Bank has had several collaborations with LIC-linked financial services. Hence, IDBI Bank is correct.
Q16. In the ACABC scheme, the first C stands for _______.
Answer: Clinic
ACABC stands for Agri-Clinics and Agri-Business Centres. Therefore, the first C stands for "Clinic."
Q17. AU Small Finance Bank tagline
Answer: Chalo Aage Badhein
AU Small Finance Bank uses the tagline "Chalo Aage Badhein." The other options belong to different brands or are not the correct AU Bank slogan.
Answer: 500
RBI guidelines for a universal banking licence require a minimum paid-up voting equity capital of ₹500 crore. This is a standard banking awareness fact. Therefore, 500 is correct.
Q19. A Bancassurance Relationship Associate is expected to achieve targets in:
Answer: Insurance premiums
Bancassurance is the distribution of insurance products through banking channels. A Bancassurance Relationship Associate therefore works toward insurance-related business targets, especially premium collection. The other options are unrelated to this role.
Answer: 2029-30
The sentence refers to SBI's projection for its home loan portfolio reaching Rs. 7 lakh crore in a specific future financial year. Among the options, 2029-30 matches the reported target year. The other options are either too early or not aligned with the context.
Q21. Under NRLM, credit services delivery is provided to rural areas through which of the following?
Answer: Self Help Groups
Under the National Rural Livelihoods Mission (NRLM), credit and livelihood support are delivered through Self Help Groups. These groups act as the primary channel for financial inclusion and rural empowerment. Therefore, the correct answer is Self Help Groups.
Q22. What is the Call Money Market (CMM)?
Answer: Market for overnight loans between banks
The call money market is a segment of the money market where banks borrow and lend funds for very short durations, typically overnight. It is used to manage temporary liquidity mismatches.
Answer: A minimum net worth of ₹1,000 crore, scheduled bank status, and a satisfactory performance track record of at least 5 years.
Under RBI's on-tap licensing framework, an SFB seeking conversion into a universal bank must satisfy specific eligibility norms. These include minimum net worth, scheduled bank status, and a satisfactory performance track record.
Answer: Money Kumar
Money Kumar is the mascot launched by the RBI for its financial awareness campaign. It is used to promote financial literacy and awareness among the public.
Q25. Which country will be the first foreign country to adopt India's UPI system?
Answer: Nepal
Nepal was announced as the first foreign country to adopt India's UPI system. This was part of the cross-border digital payments expansion initiative.
Q26. The present Statutory Liquidity Ratio rate is -
Answer: 18.50%
Statutory Liquidity Ratio (SLR) is the minimum percentage of NDTL that banks must maintain in the form of liquid assets. In standard IBPS awareness questions, the present SLR rate is taken as 18.50%.
Answer: ₹50 crore
The Advisory Board for Banking Frauds (ABBF) was constituted to examine bank fraud cases above a specified threshold. That threshold is ₹50 crore, making it the correct answer.
Answer: 2015
The Sovereign Gold Bond Scheme was launched by the Government of India in 2015. It was introduced as an alternative to holding physical gold and is issued in tranches by the RBI. Hence, 2015 is correct.
Answer: Payment Analysis
RBI’s Digital Payments Index uses parameters such as payment enablers, payment infrastructure, payment performance, and payment adoption/deepening. "Payment Analysis" is not one of the parameters. Therefore, it is the correct choice.
Q30. What is the newly increased UPI transaction limit for tax payments in India?
Answer: ₹5 lakh
The UPI transaction limit for tax payments in India has been increased to ₹5 lakh. This applies specifically to tax-related payments and not to all UPI transactions.
Answer: Cohort, Regulatory Sandbox
RBI conducts live testing of new financial products or services in a controlled environment called a regulatory sandbox. The selected group of participants is referred to as a cohort. Hence, the correct phrase is "Cohort, Regulatory Sandbox."
Q32. The ratio of a bank's available capital to its risk-weighted credit exposure is termed as
Answer: Capital adequacy ratio
Capital adequacy ratio measures a bank's capital relative to its risk-weighted credit exposure. It indicates the bank's ability to absorb losses and maintain solvency. Therefore, the correct term is Capital adequacy ratio.
Q33. Which of the following mutual funds was renamed as Nippon India Mutual Fund?
Answer: Reliance Mutual Fund
Reliance Mutual Fund was renamed Nippon India Mutual Fund after the brand transition. This is a common banking and financial awareness fact asked in competitive exams.
Q34. What is the new contactless card service launched by SBI named as?
Answer: SBI inTouch cards
SBI launched its contactless card service under the name SBI inTouch cards. This is a banking awareness fact related to digital payment products.
Q35. RBI quashed the merger of Lakshmi Vilas Bank with which of the following banks?
Answer: Ujjivan Bank
The question refers to the proposed merger involving Lakshmi Vilas Bank that was not approved by RBI. Among the given options, the intended answer is Ujjivan Bank.
Q36. Small Finance Bank in-principle approval is valid for how many months?
Answer: 18 months
In-principle approval for a small finance bank is generally valid for 18 months. Within this period, the bank must fulfill the required conditions for final licensing.
Q37. Which of the following is the apex body for agricultural credit in India?
Answer: NABARD
NABARD stands for the National Bank for Agriculture and Rural Development. It is the apex institution in India for agricultural and rural credit. Hence, it is the correct answer.
Q38. Who is the chair of the committee on the ban of virtual currencies in India?
Answer: Subhash Chandra Garg
The committee on the ban/regulation of virtual currencies in India was chaired by Subhash Chandra Garg, who was then the Finance Secretary. This is a standard banking and financial awareness fact.
Q39. To what percent did the gross NPA ratio decline in FY19 from 11.2% in FY18?
Answer: 9.30%
The gross NPA ratio declined from 11.2% in FY18 to 9.3% in FY19. This is a factual banking-awareness question. The correct option is the one matching the FY19 value.
Answer: 10%
Under priority sector lending norms, weaker sections have a sub-target of 10% of Adjusted Net Bank Credit (ANBC). SC/ST categories and women are included under this weaker sections allocation.
Q41. Shishu, Tarun and Kishor schemes of the Government of India are associated with which sector?
Answer: Micro Unit Business Development
Shishu, Tarun and Kishor are categories under the MUDRA scheme, which stands for Micro Units Development and Refinance Agency. It is associated with providing financial support to micro and small enterprises. Hence, the correct sector is Micro Unit Business Development.
Q42. A cash credit account will become an NPA if it
Answer: Remains out of order for more than 90 days
A cash credit account is treated as NPA when it remains out of order for more than 90 days. This is a standard banking norm for working capital accounts.
Q43. What is the primary objective of Project 'Sashakt' for public sector banks?
Answer: Credit portfolio strengthening
Project Sashakt was launched to strengthen the credit portfolio of public sector banks by improving resolution of stressed assets and reducing NPAs. It is not primarily about HR, digitalization, or customer service.
Answer: 4.5
S&P Global’s projection states that Indian banks' NPAs are expected to fall to 4.5% by the end of FY 2023–24, and then further to 3.5% by FY 2024–25. Hence, the correct option is 4.5.
Answer: 2006
The Banking Correspondent Model was introduced by RBI in 2006 to improve access to banking services in underserved areas. It became an important financial inclusion initiative.
Q46. Bharatiya Reserve Bank Note Mudran Press is located in Salboni, West Bengal, and another one is in
Answer: Mysore
Bharatiya Reserve Bank Note Mudran Private Limited has note printing presses at Salboni in West Bengal and Mysore in Karnataka. Hence, Mysore is the correct answer.
Q47. MUDRA Bank is a subsidiary of SIDBI. But it will be converted into a __ by passing a Parliament Act.
Answer: BANK
MUDRA was initially set up as a subsidiary of SIDBI. The intended conversion through legislation is into a bank, so the correct option is BANK.
Q48. What do you understand by the Marginal Standing Facility?
Answer: Marginal Standing Facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.
Marginal Standing Facility is an emergency borrowing window provided by the RBI to scheduled banks. It is used when inter-bank liquidity is unavailable or insufficient. Therefore, option B is correct.
Answer: Transaction records, chargebacks, and dispute resolution details
To track credit card transactions and disputes, a customer service associate maintains transaction records, chargebacks, and dispute resolution details. The other options are unrelated to card servicing.
Answer: Legal Entity Identifier (LEI)
The Legal Entity Identifier (LEI) is a 20-character alphanumeric code used to uniquely identify legal entities involved in financial transactions worldwide. BIC/SWIFT and IFSC are bank-related codes, not entity identifiers. Hence, LEI is correct.