General Awareness
What is the primary objective of Priority Sector Lending (PSL)?
A
To increase bank's profit margins
B
To provide credit to disadvantaged sectors of the economy
C
To reduce RBI's regulatory burden
D
To encourage foreign investments
Correct Answer:
B. To provide credit to disadvantaged sectors of the economy
PSL mandates banks to lend a certain percentage of advances to priority sectors like agriculture, SMEs, and education for inclusive growth.
Which of the following credit facilities is typically used for short-term working capital needs?
A
Mortgage Loan
B
Cash Credit
C
Home Loan
D
Auto Loan
Correct Answer:
B. Cash Credit
Cash Credit is a short-term credit facility provided to businesses for meeting their working capital requirements on a revolving basis.
What is the full form of RTGS?
A
Real Time Gross Settlement
B
Rapid Transfer and Global System
C
Real Time Global Settlement
D
Regulated Transaction Gross System
Correct Answer:
A. Real Time Gross Settlement
RTGS (Real Time Gross Settlement) is a system for real-time transfer of funds and securities between banks in India.
Which organization regulates insurance companies in India?
A
RBI
B
SEBI
C
IRDA (IRDAI)
D
Ministry of Finance
Correct Answer:
C. IRDA (IRDAI)
Insurance Regulatory and Development Authority of India (IRDAI) regulates and supervises insurance companies operating in India.
What is the minimum Statutory Liquidity Ratio (SLR) as per RBI norms in 2024?
A
18%
B
19.5%
C
20%
D
21.5%
The Statutory Liquidity Ratio is currently maintained at 19.5% of net demand and time liabilities, as per RBI guidelines.
Which of the following is a measure of bank's profitability?
A
Capital Adequacy Ratio
B
Return on Assets (ROA)
C
Statutory Liquidity Ratio
D
Priority Sector Lending
Correct Answer:
B. Return on Assets (ROA)
Return on Assets (ROA) measures how efficiently a bank uses its assets to generate profit. It's calculated as Net Income / Total Assets.
What does NEFT stand for in banking?
A
National Electronic Funds Transfer
B
New Electronic Financial Transaction
C
National Exchange Financial Transaction
D
National Electronic Financial Terminal
Correct Answer:
A. National Electronic Funds Transfer
NEFT (National Electronic Funds Transfer) is an electronic fund transfer system in India for transferring funds between banks.
Which bank is the 'Banker to the Government' of India?
A
State Bank of India
B
Reserve Bank of India
C
HDFC Bank
D
ICICI Bank
Correct Answer:
B. Reserve Bank of India
RBI serves as the Banker to the Government of India, managing government accounts, treasury operations, and public debt.
What is the current repo rate set by RBI as of 2024?
A
5.5%
B
6.5%
C
4.5%
D
7.0%
As per RBI's latest monetary policy in 2024, the repo rate stands at 6.5%. This is the rate at which RBI lends to commercial banks.
Which of the following is NOT a function of the Reserve Bank of India?
A
Issuing currency notes
B
Managing foreign exchange reserves
C
Direct lending to retail customers
D
Implementing monetary policy
Correct Answer:
C. Direct lending to retail customers
RBI does not directly lend to retail customers. Its primary functions include currency issuance, forex management, and monetary policy implementation through banking channels.
