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Bank PO / Clerk / RBI

PO, Clerk, RRB — Quantitative, Reasoning, GK

246 Q 3 Topics Take Test
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Difficulty: All Easy Medium Hard 171–180 of 246
Topics in Bank PO / Clerk / RBI
Q.171 Medium
A customer avails a ₹25 lakh home loan at 7.2% p.a. for 20 years (EMI basis). Approximately what will be the total interest paid?
A ₹10,50,000
B ₹12,00,000
C ₹13,50,000
D ₹15,00,000
Correct Answer:  C. ₹13,50,000
EXPLANATION

Using home loan EMI formula, total interest for ₹25 lakh at 7.2% over 240 months ≈ ₹13,50,000 (approximate calculation based on standard amortization).

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Q.172 Medium
Which RBI circular (2024) introduced the Liquidity Coverage Ratio (LCR) requirement for Scheduled Commercial Banks?
A As per Basel I framework
B As per Basel II framework
C As per Basel III framework
D As per RBI guidelines effective 2018 onwards, maintained in 2024
Correct Answer:  C. As per Basel III framework
EXPLANATION

LCR was introduced under Basel III to ensure banks maintain adequate high-quality liquid assets to survive acute stress scenarios.

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Q.173 Medium
A bank's Return on Assets (ROA) improved from 0.8% to 1.1% while Return on Equity (ROE) remained at 12%. What can be inferred?
A Profitability improved with better asset utilization
B The bank increased its leverage significantly
C Deposits decreased while profits increased
D Operating costs reduced but asset base remains unchanged
Correct Answer:  A. Profitability improved with better asset utilization
EXPLANATION

Improved ROA indicates better profitability relative to total assets. Stable ROE with improved ROA suggests maintained leverage with better operational efficiency.

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Q.174 Medium
Which of the following is NOT covered under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
A Death due to natural causes
B Accidental death
C Disability coverage
D Critical illness coverage
Correct Answer:  D. Critical illness coverage
EXPLANATION

PMJJBY provides only death cover (natural and accidental), not critical illness coverage. For critical illness, Ayushman Bharat is a separate scheme.

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Q.175 Medium
RBI's Current Account and Savings Account (CASA) ratio benchmark for banks is typically aimed at achieving what percentage?
A 30-35%
B 35-40%
C 40-45%
D 50%+
Correct Answer:  B. 35-40%
EXPLANATION

A healthy CASA ratio of 35-40% indicates banks have a stable, low-cost deposit base, which improves net interest margins.

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Q.176 Medium
Under Basel III norms, what is the minimum Common Equity Tier 1 (CET1) capital ratio for banks in India as per RBI guidelines 2024?
A 5.5%
B 6.5%
C 7.5%
D 8.5%
Correct Answer:  B. 6.5%
EXPLANATION

RBI mandates a minimum CET1 capital ratio of 6.5% for Indian banks under Basel III framework to ensure financial stability.

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Q.177 Medium
Under RBI's Know Your Customer (KYC) norms, what is the minimum frequency for KYC updation?
A Every year
B Every 2 years
C Every 5 years
D Every 10 years
Correct Answer:  C. Every 5 years
EXPLANATION

RBI mandates KYC updation every 10 years for regular customers, though higher-risk categories may require more frequent updates.

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Q.178 Medium
A bank's Provision Coverage Ratio (PCR) improved from 62% to 71% YoY. This indicates:
A Deteriorating asset quality
B Improving asset quality and risk management
C Increased loan disbursement
D Lower profitability
Correct Answer:  B. Improving asset quality and risk management
EXPLANATION

Higher PCR indicates better provision coverage against stressed assets, reflecting stronger risk management and improving asset quality.

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Q.179 Medium
A bank's deposits grew from ₹3,00,000 crore to ₹3,54,000 crore in one year. What is the YoY growth rate?
A 15%
B 16%
C 18%
D 20%
Correct Answer:  C. 18%
EXPLANATION

Growth = (3,54,000 - 3,00,000) / 3,00,000 × 100 = 54,000/3,00,000 × 100 = 18%.

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Q.180 Medium
Which banking regulation in India is NOT implemented under Basel III framework?
A Capital Adequacy Ratio
B Liquidity Coverage Ratio
C Statutory Liquidity Ratio (SLR)
D Net Stable Funding Ratio
Correct Answer:  C. Statutory Liquidity Ratio (SLR)
EXPLANATION

SLR is an RBI-specific regulation predating Basel III. Basel III includes CAR, LCR, and NSFR.

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