Exams › IBPS PO › General Awareness › Banking & Finance
68 questions with worked solutions.
Q1. What is the full form of PACS?
Answer: Primary Agricultural Co-operative Society
PACS are village-level cooperatives providing short-term credit to farmers. They form the base of the three-tier cooperative credit structure (PACS → District Cooperative Banks → State Cooperative Banks).
Q2. The RBI has played conservative in ________ a rate cut of just 25 basis points.
Answer: announcing
After 'in' a gerund is required. 'Announcing' (gerund) correctly completes 'conservative in announcing a rate cut.' The other options are ungrammatical or change the meaning.
Q3. When was the RBI nationalized?
Answer: 1949
The Reserve Bank of India was established in 1935 as a private entity. Post-independence, it was nationalized on January 1, 1949 under the RBI (Transfer to Public Ownership) Act, 1948.
Q4. ______ relates to inaccurate statements which are made without any fraudulent intention.
Answer: misrepresentation
Misrepresentation is a false statement made without fraudulent intent (innocent or negligent misrepresentation). It differs from fraud, which requires intent to deceive. In contract law, misrepresentation can make a contract voidable even without intent.
Answer: credit risk
Credit risk is the risk that a borrower will default on a loan or other financial obligation by failing to make required payments. It is the primary concern in banking and lending operations.
Answer: Section 80G
Section 80G of the Income Tax Act allows deductions for donations made to approved charitable institutions. Purchasing zero-coupon, zero-principal bonds from NPOs constitutes a donation, eligible for deduction under Section 80G.
Answer: Usha Ananthasubramanian
Usha Ananthasubramanian served as the CMD of Bharatiya Mahila Bank (India's first bank dedicated to women). She was subsequently appointed as the MD & CEO of Punjab National Bank.
Q8. Fino Payments Bank was granted the status of which type of bank by RBI?
Answer: Scheduled Commercial Bank
Fino Payments Bank, which operates as a payments bank, was granted Scheduled Commercial Bank status by the Reserve Bank of India in 2023. This makes it eligible to be included in the Second Schedule of the RBI Act.
Q9. The Consumer Confidence Survey (CCS) is conducted by which institution in India?
Answer: Reserve Bank of India
The Consumer Confidence Survey (CCS) is conducted bi-monthly by the Reserve Bank of India. It covers perceptions of households about the general economic situation, employment, price levels, income and spending.
Q10. What is the current Statutory Liquidity Ratio (SLR)?
Answer: 19.50%
The Statutory Liquidity Ratio (SLR) is the percentage of deposits that commercial banks must maintain as liquid assets. RBI kept SLR at 19.50% during the relevant exam period.
Q11. The Kisan Credit Card scheme provides farmers with timely access to credit for what purpose(s)?
Answer: Family Consumption and Cold Storage
The Kisan Credit Card (KCC) scheme provides credit for: agricultural operations, post-harvest expenses, allied and non-farm activities, AND also includes credit for consumption requirements of the farmer's family and short-term credit for cold storage of produce.
Answer: Weighted average call rate
The RBI uses the weighted average call rate (WACR) as the operating target for monetary policy transmission. LAF corridor operations (repo, SDF, VRRR) are calibrated around WACR to keep it aligned with the policy repo rate.
Answer: Singapore
The Reserve Bank of India and the Monetary Authority of Singapore (MAS) signed an MoU to link India's UPI with Singapore's PayNow real-time payment system, enabling cross-border payments between the two countries.
Answer: Bank of Baroda
Bank of Baroda became the first public sector bank to join as a Repository Participant under the Warehousing Development and Regulatory Authority (WDRA) ecosystem, enabling pledge finance against electronic Negotiable Warehouse Receipts (e-NWRs).
Answer: 2,000
Under RBI's revised guidelines for stressed asset resolution, banks were directed to file insolvency petitions under the Insolvency and Bankruptcy Code (IBC) against borrowers with outstanding of ₹2,000 crore or more.
Q16. An increase in the Debt Service Coverage Ratio (DSCR) indicates:
Answer: Entity is able to cover its debt repayment
DSCR = Net Operating Income / Debt Service (principal + interest). An increase in DSCR means the entity generates more income relative to its debt obligations — i.e., it is better able to cover its debt repayment. A DSCR≥1 indicates sufficient income to service debt.
Q17. Which bank launched 'Social Pay' for NRIs?
Answer: ICICI Bank
ICICI Bank launched 'Social Pay', a service that allows Non-Resident Indians (NRIs) to send money to beneficiaries in India through social media platforms. It was part of ICICI's NRI banking digital innovation suite.
Q18. Which Scheduled Commercial Bank recorded the highest credit growth in recent years?
Answer: HDFC Bank
HDFC Bank recorded the highest credit growth among Scheduled Commercial Banks in the relevant exam period, driven by retail, MSME, and corporate lending growth.
Q19. Which of the following is the regulator of the Capital Market in India?
Answer: SEBI
The Securities and Exchange Board of India (SEBI), established in 1992, is the statutory regulator for the capital markets in India. It regulates stock exchanges, brokers, mutual funds, and other capital market intermediaries.
Answer: IndusInd Bank
The Reserve Bank of India granted approval to SBI Funds Management Limited (SBIFML) to acquire up to 9.99% of the total paid-up share capital of IndusInd Bank under the RBI's ownership guidelines.
Q21. AU Small Finance Bank Limited is headquartered in which city?
Answer: Jaipur
AU Small Finance Bank Limited (formerly AU Financiers) is an Indian Small Finance Bank headquartered in Jaipur, Rajasthan. It was granted SFB license by RBI in 2017.
Q22. BOND-I (the world's first blockchain-based bond) was issued by which institution?
Answer: World Bank
BOND-I (Blockchain Offered New Debt Instrument) was issued by the World Bank in August 2018. It was the world's first bond to be entirely created, allocated, transferred, and managed using distributed ledger (blockchain) technology, using the Commonwealth Bank of Australia as the sole arranger.
Answer: The funds to be set up with Small Industries Development Bank of India (SIDBI)
Under RBI's Priority Sector Lending (PSL) guidelines, foreign banks with shortfall in PSL targets must contribute to the funds to be set up with SIDBI (Small Industries Development Bank of India), not RIDF with NABARD (which applies to domestic banks).
Q24. In April 2021, who announced three significant changes for Prepaid Instruments (PPI)?
Answer: Shaktikanta Das
Shaktikanta Das, the Governor of the Reserve Bank of India, announced three significant changes for Prepaid Payment Instruments (PPIs) in April 2021 as part of the bi-monthly monetary policy review.
Q25. Who assumed the role of President of the World Bank in 2019?
Answer: David Malpass
David Malpass assumed office as the 13th President of the World Bank Group in April 2019. He was nominated by President Trump and had served as US Treasury Under Secretary for International Affairs.
Q26. In which city is the headquarters of the specified financial institution?
Answer: Bengaluru
The specified financial institution is headquartered in Bengaluru, Karnataka — India's technology and startup hub.
Q27. RBI comes out with draft norms for a specific requirement. What is the specified threshold amount?
Answer: ₹200 crore
The Reserve Bank of India's draft norms specify ₹200 crore as the threshold amount for the relevant regulation.
Q28. The Steering Committee on Fintech related issues is chaired by whom?
Answer: Secretary, Department of Economic Affairs
The Steering Committee constituted to look into Fintech-related issues in India is chaired by the Secretary, Department of Economic Affairs (DEA), Ministry of Finance.
Q29. Which insurance company launched the specified insurance product?
Answer: HDFC ERGO
HDFC ERGO General Insurance Company launched the specified insurance product.
Q30. In which Indian general insurance company did Zurich Insurance Group acquire a stake?
Answer: Kotak Mahindra General Insurance
Zurich Insurance Group, a major global insurer headquartered in Switzerland, acquired a significant stake in Kotak Mahindra General Insurance Company, marking a major FDI event in India's insurance sector.
Q31. In which state is Bank of India (BoI) headquartered?
Answer: Maharashtra
Bank of India (BoI), one of India's oldest public sector banks, is headquartered in Bandra Kurla Complex (BKC), Mumbai, Maharashtra.
Q32. Market risks are most prominent for which type of banks?
Answer: Investment banks
Market risk arises from changes in market prices (equity, FX, interest rates, commodities). Investment banks are most exposed to market risk because they engage heavily in securities trading, derivatives, and capital markets activities.
Q33. Which bias involves continuing to invest based on past (irrecoverable) investments?
Answer: Sunk Cost Fallacy
The Sunk Cost Fallacy is the tendency to continue investing in something because of past (unrecoverable) costs rather than future value. It's irrational since past costs should be irrelevant to current decision-making.
Q34. Risk transfer through risk pooling is called:
Answer: insurance
Insurance is the classic risk transfer mechanism through risk pooling. Many individuals pay premiums; when one faces a loss, the pool compensates them. This is distinct from hedging (offsetting with opposite position) or diversification.
Q35. What is the official name of the central bank of USA?
Answer: Federal Reserve
The Federal Reserve System (commonly called the Fed) is the central bank of the United States. Established in 1913, it controls monetary policy, regulates banks, and provides financial services to the US government.
Q36. RBI's 'GUARD' strategy for UCB cybersecurity: what does 'A' stand for?
Answer: Appropriate Regulation (Governance Oversight, Utile Technology Investment, Appropriate Regulation and Supervision, Robust Collaboration and Developing necessary IT & cybersecurity skills set)
RBI's GUARD framework: G=Governance Oversight, U=Utile Technology Investment, A=Appropriate Regulation and Supervision, R=Robust Collaboration, D=Developing IT & cybersecurity skills. 'A' stands for Appropriate Regulation.
Q37. Which company tied up with Yes Bank for a co-branded product?
Answer: PNB Housing Finance
PNB Housing Finance Company signed an agreement with Yes Bank to launch a co-branded product/service for their customers.
Q38. According to Union Budget 2024-25, what is the venture capital fund allocation for space sector?
Answer: ₹1,000 crores
In Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced a ₹1,000 crore venture capital fund to boost the space economy and support space startups.
Q39. What is the name of the RBI portal to track unclaimed deposits?
Answer: UDGAM
UDGAM (Unclaimed Deposits - Gateway to Access inforMation) is an RBI portal launched in August 2023, allowing customers to search for their unclaimed deposits across multiple banks in one place.
Q40. How many top companies are listed under BSE SENSEX?
Answer: 30
The BSE SENSEX (Bombay Stock Exchange Sensitive Index) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange.
Q41. RBI made a strong case for setting up which registry to improve credit information?
Answer: Public Credit Registry
The Reserve Bank of India (RBI) made a strong case for setting up a Public Credit Registry (PCR) — a digital, large-scale database of credit information covering all types of borrowers (individuals, firms, banks). This would improve credit information availability and reduce information asymmetry.
Q42. Which organisation set up a 5-year strategic plan/programme in the question context?
Answer: RBI
The Reserve Bank of India (RBI) set up the specified 5-year strategic programme or initiative as mentioned in the question context.
Q43. A rise in the underlying asset's price accompanied by a rise in open interest indicates?
Answer: Long build-up
In derivatives trading: Long build-up = price ↑ + Open Interest ↑ (new long positions added). Short build-up = price ↓ + OI ↑. Short covering = price ↑ + OI ↓. Long unwinding = price ↓ + OI ↓.
Q44. How many Deputy Governors does the Central Board of Directors of the Reserve Bank of India have?
Answer: four
The Reserve Bank of India's Central Board includes 1 Governor and 4 Deputy Governors. Each Deputy Governor oversees different departments (monetary policy, regulation, operations, currency management, etc.).
Q45. NEFT transactions are available for how long?
Answer: 24 hours, everyday
The RBI made NEFT available on a 24×7 basis from December 16, 2019. It now operates 24 hours a day, every day of the week including weekends and bank holidays.
Q46. Which of the following is NOT a function of the Reserve Bank of India?
Answer: Regulation of stock exchanges
RBI functions include: issuing currency, acting as banker to government, credit control, foreign exchange management, and banking regulation. Regulation of stock exchanges is the domain of SEBI, not RBI.
Q47. Which organization is acting as the market regulator in India?
Answer: SEBI
SEBI (Securities and Exchange Board of India) is the statutory regulator for India's securities markets, established under the SEBI Act 1992. It regulates stock exchanges, brokers, mutual funds, and protects investor interests.
Q48. Who among the following Indian celebrities has RBI chosen as brand ambassador?
Answer: Amitabh Bachchan
The Reserve Bank of India chose Amitabh Bachchan as its brand ambassador, primarily for the Clean Note Policy campaign to promote proper handling of currency notes.
Answer: SEBI
SEBI (Securities and Exchange Board of India), as the securities market regulator, set up a high-level panel to suggest measures to strengthen investor grievance redressal mechanisms in India.
Q50. What type of company typically provides a surety bond?
Answer: Insurance Company
A surety bond is a legally binding contract where the surety (typically an insurance company or its subsidiary) guarantees that the principal will fulfill their obligations to the obligee. Insurance companies and specialized surety companies provide these bonds.