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
The Retail Direct Scheme enables individuals to open accounts with RBI and purchase government securities directly, reducing intermediation costs.
Which Indian bank was accorded the status of a 'Domestic Systemically Important Bank' (D-SIB) in the latest RBI classification (2024)?
A
ICICI Bank, HDFC Bank, Axis Bank, State Bank of India
B
Only SBI and HDFC Bank
C
IDBI Bank and Union Bank of India
D
All Scheduled Commercial Banks
Correct Answer:
A. ICICI Bank, HDFC Bank, Axis Bank, State Bank of India
ICICI Bank, HDFC Bank, Axis Bank, and State Bank of India are classified as D-SIBs and required to maintain higher capital buffers due to systemic importance.
As per the latest RBI guidelines on cyber security (2024), what is the minimum frequency for conducting security audits by banks?
A
Annually
B
Semi-annually
C
Quarterly
D
Bi-annually at minimum
Correct Answer:
A. Annually
RBI mandates that banks conduct comprehensive security audits at least annually, with more frequent assessments for critical systems.
Under the RBI's directive, what is the maximum tenure for which a bank can provide a Masala Bond?
A
2 years
B
5 years
C
10 years
D
No fixed maximum tenure specified
Correct Answer:
D. No fixed maximum tenure specified
Masala Bonds are rupee-denominated bonds issued overseas with no fixed maximum tenure restriction, governed by FEMA guidelines.
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
UPI 2.0 introduced features like offline transaction capability and voice-enabled payments to enhance accessibility and user experience.
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
The IRDR Framework provides a structured approach for banks to resolve stressed assets and restructure debts to promote financial stability.
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)
Basel III introduced the Capital Conservation Buffer (2.5%) and Countercyclical Buffer to ensure banks maintain capital above minimum levels during good times.
What is the current CRR (Cash Reserve Ratio) maintained by Scheduled Commercial Banks with RBI (2024-2025)?
A
3.5%
B
4.0%
C
4.5%
D
5.0%
The Cash Reserve Ratio is maintained at 4.5% of Net Demand and Time Liabilities (NDTL) as per RBI's current monetary policy stance.
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
SLR requires banks to maintain a certain percentage of their net demand and time liabilities in the form of liquid assets like government securities.
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%
The RBI targets a Consumer Price Index (CPI) inflation of 4% with a tolerance band of +/- 2%, resulting in a 2-6% target range.
