General Awareness
What is the full form of SWIFT in banking operations?
A
Secure World Internet Financial Transfer
B
Society for Worldwide Interbank Financial Telecommunication
C
Standard Worldwide International Financial Technology
D
Systematic World Inter-Financial Transfer
Correct Answer:
B. Society for Worldwide Interbank Financial Telecommunication
SWIFT is the Society for Worldwide Interbank Financial Telecommunication, used for secure international fund transfers.
Which term refers to the difference between the Repo Rate and the Reverse Repo Rate set by RBI?
A
Corridor
B
Spread
C
Liquidity Adjustment Facility (LAF)
D
Policy Rate
Correct Answer:
A. Corridor
The corridor refers to the band between Repo Rate (upper ceiling) and Reverse Repo Rate (lower floor) for overnight lending.
In data interpretation for banking exams, if a bank's Net Interest Income (NII) increases by 15% but Net Profit decreases by 5%, what could be the likely reason?
A
Decrease in operating expenses
B
Increase in provisions and contingencies or operating expenses
C
Improvement in asset quality
D
Increase in advances
Correct Answer:
B. Increase in provisions and contingencies or operating expenses
If NII increases but Net Profit decreases, it indicates higher provisions/contingencies or elevated operating expenses offsetting income gains.
What is the primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
A
To provide life insurance to poor households
B
To ensure financial inclusion through universal access to banking services
C
To regulate credit card issuance
D
To monitor stock market transactions
Correct Answer:
B. To ensure financial inclusion through universal access to banking services
PMJDY aims at financial inclusion by providing zero-balance bank accounts and access to banking services for all.
Which RBI directive mandates banks to maintain Statutory Liquidity Ratio (SLR) at a minimum of what percentage of NDTL?
A
18%
B
21.5%
C
19.5%
D
20%
SLR is currently maintained at 21.5% of Net Demand and Time Liabilities (NDTL) as per RBI guidelines.
Under Basel III norms, what is the additional capital buffer (Countercyclical Buffer) requirement during periods of excessive credit growth?
A
0.625% to 2.5%
B
1% to 3%
C
0.5% to 1.5%
D
2% to 4%
Correct Answer:
A. 0.625% to 2.5%
Basel III prescribes a Countercyclical Buffer ranging from 0.625% to 2.5% of risk-weighted assets during credit booms.
The repo rate as of February 2024 is maintained at what level by RBI's Monetary Policy Committee?
A
5.75%
B
6.5%
C
7.0%
D
6.25%
As per RBI's latest monetary policy stance in 2024, the repo rate stands at 6.5% with a neutral policy stance.
Which of the following is NOT a type of deposit account offered by commercial banks?
A
Recurring Deposit Account
B
Fixed Deposit Account
C
Perpetual Deposit Account
D
Savings Deposit Account
Correct Answer:
C. Perpetual Deposit Account
Perpetual Deposit Account is not a standard deposit category. Banks offer Savings, Current, Fixed, and Recurring deposits.
As per RBI's latest guidelines (2024), what is the minimum CRAR (Capital to Risk-Weighted Assets Ratio) requirement for Scheduled Commercial Banks?
A
9%
B
10.5%
C
11.5%
D
12%
RBI mandates a minimum CRAR of 10.5% for SCBs, comprising 5.5% Tier I capital and 5% Tier II capital as per Basel III framework.
Which of the following is a feature of digital banking in India's financial inclusion drive?
A
Reduced transaction costs
B
24/7 accessibility to banking services
C
Access to banking for unbanked populations
D
All of the above
Correct Answer:
D. All of the above
Digital banking provides reduced costs, 24/7 access, and enables financial inclusion for unbanked populations through mobile and internet banking.
