Bank PO / Clerk / RBI — General Awareness Questions & Answers

Q.1 Medium General Awareness

The RBI's 'Retail Direct Scheme' allows individual investors to directly purchase government securities. What is a key benefit of this scheme?

A Eliminates the role of brokers and reduces transaction costs

B Provides guaranteed returns on investment

C Allows unlimited investment without KYC requirements

D Permits investment in corporate bonds exclusively

Correct Answer: A. Eliminates the role of brokers and reduces transaction costs

EXPLANATION

The Retail Direct Scheme enables individuals to open accounts with RBI and purchase government securities directly, reducing intermediation costs.

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Q.2 Medium General Awareness

Which of the following is a key feature of Unified Payments Interface (UPI) 2.0 launched in 2024?

A Support for offline transactions and voice-enabled payments

B Integration with cryptocurrency exchanges

C Mandatory use of biometric authentication

D Restriction on international transfers

Correct Answer: A. Support for offline transactions and voice-enabled payments

EXPLANATION

UPI 2.0 introduced features like offline transaction capability and voice-enabled payments to enhance accessibility and user experience.

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Q.3 Medium General Awareness

The RBI's 'Insolvency Resolution and Debt Restructuring (IRDR) Framework' primarily focuses on which aspect?

A Promoting cryptocurrency trading

B Resolving stressed assets and restructuring debt of borrowers

C Increasing bank profitability

D Regulating foreign exchange markets

Correct Answer: B. Resolving stressed assets and restructuring debt of borrowers

EXPLANATION

The IRDR Framework provides a structured approach for banks to resolve stressed assets and restructure debts to promote financial stability.

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Q.4 Medium General Awareness

Which regulatory framework ensures that banks maintain adequate capital buffers above minimum requirements?

A Basel I Framework

B Basel III Framework (Capital Conservation Buffer and Countercyclical Buffer)

C Dodd-Frank Act

D Payment and Settlement Systems Act

Correct Answer: B. Basel III Framework (Capital Conservation Buffer and Countercyclical Buffer)

EXPLANATION

Basel III introduced the Capital Conservation Buffer (2.5%) and Countercyclical Buffer to ensure banks maintain capital above minimum levels during good times.

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Q.5 Medium General Awareness

Which of the following best describes the 'Statutory Liquidity Ratio' (SLR) maintained by banks?

A Percentage of deposits to be maintained as cash reserves with RBI

B Percentage of deposits to be invested in government securities and approved securities

C Percentage of capital to risk-weighted assets

D Percentage of advances given to priority sector

Correct Answer: B. Percentage of deposits to be invested in government securities and approved securities

EXPLANATION

SLR requires banks to maintain a certain percentage of their net demand and time liabilities in the form of liquid assets like government securities.

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Q.6 Medium General Awareness

Under the RBI's Inflation Targeting Framework, what is the target inflation range for consumer price inflation?

A 2% to 4%

B 2% to 6%

C 3% to 5%

D 4% to 6%

Correct Answer: B. 2% to 6%

EXPLANATION

The RBI targets a Consumer Price Index (CPI) inflation of 4% with a tolerance band of +/- 2%, resulting in a 2-6% target range.

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Q.7 Medium General Awareness

Which bank has been designated as the Wholly-Owned Subsidiary (WOS) of Reserve Bank of India in 2024?

A RBI Payments Private Limited

B National Housing Bank

C NABARD

D State Bank of India

Correct Answer: A. RBI Payments Private Limited

EXPLANATION

RBI Payments Private Limited operates as a wholly-owned subsidiary of the Reserve Bank of India, managing critical payment infrastructure.

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Q.8 Medium General Awareness

As per the latest RBI regulations (2024), what is the minimum Capital to Risk-Weighted Assets Ratio (CRAR) requirement for Scheduled Commercial Banks?

A 9.5%

B 10.5%

C 11.5%

D 12.5%

Correct Answer: B. 10.5%

EXPLANATION

RBI mandates a minimum CRAR of 10.5% for Scheduled Commercial Banks, which includes Common Equity Tier 1 (CET1), Additional Tier 1, and Tier 2 capital.

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Q.9 Medium General Awareness

Which of the following is a characteristic of 'Cryptocurrency' that distinguishes it from fiat currency?

A It is regulated by central banks

B It uses blockchain technology for decentralized transactions

C It has unlimited supply

D It is backed by physical gold reserves

Correct Answer: B. It uses blockchain technology for decentralized transactions

EXPLANATION

Cryptocurrencies use blockchain technology for decentralized, peer-to-peer transactions without central bank control. They operate on distributed ledger technology ensuring transparency and security.

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Q.10 Medium General Awareness

What is the primary objective of a 'Priority Sector Lending' mandate for banks?

A To maximize bank profits

B To provide credit to underserved sectors like agriculture and SMEs

C To reduce competition in the banking sector

D To increase RBI's regulatory authority

Correct Answer: B. To provide credit to underserved sectors like agriculture and SMEs

EXPLANATION

Priority Sector Lending (PSL) ensures banks allocate a certain percentage of advances to underserved sectors including agriculture, SMEs, and low-income housing, promoting inclusive growth.

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