Showing 1–10 of 18 questions
in Banking Awareness
What is the primary function of the Financial Stability and Development Council (FSDC)?
A
To regulate insurance companies
B
To coordinate among financial sector regulators
C
To approve bank mergers
D
To set interest rates
Correct Answer:
B. To coordinate among financial sector regulators
EXPLANATION
FSDC coordinates among RBI, SEBI, IRDAI, and other regulators for financial stability.
Which of the following IS a characteristic of a Scheduled Bank as per RBI definitions?
A
Operations limited to urban areas only
B
Minimum paid-up capital and reserves of Rs. 5 lakh
C
Maximum loan limit of Rs. 100 crore
D
Can only accept deposits from government
Correct Answer:
B. Minimum paid-up capital and reserves of Rs. 5 lakh
EXPLANATION
A Scheduled Bank must have minimum paid-up capital and reserves of Rs. 5 lakh as per RBI definitions.
What is the implementation timeline for the Indian Banks' Association (IBA) model on stress testing for credit risk?
A
Quarterly basis
B
Semi-annually
C
Annually
D
Bi-annually with quarterly reviews
Correct Answer:
A. Quarterly basis
EXPLANATION
Banks conduct stress tests on a quarterly basis as per RBI guidelines and IBA framework.
Under Unified Payments Interface (UPI) 2.0, what is the new feature introduced for offline transactions?
A
Cross-border payments
B
Offline transaction capability up to Rs. 200
C
Real-time gross settlement
D
Cryptocurrency integration
Correct Answer:
B. Offline transaction capability up to Rs. 200
EXPLANATION
UPI 2.0 introduced offline transaction capability allowing payments without internet connectivity.
Which of the following factors is NOT considered while calculating the Credit Risk Weight of an asset under Basel III?
A
Nature of borrower
B
Maturity of loan
C
Collateral held
D
Branch location of bank
Correct Answer:
D. Branch location of bank
EXPLANATION
Branch location is not a factor in risk weighting. Nature of borrower, maturity, and collateral are key factors.
What is the statutory Liquidity Ratio (SLR) requirement for banks as per RBI guidelines (2024)?
EXPLANATION
RBI maintains the SLR requirement at 18% with recent adjustments around 20% for specific instruments.
Under the Priority Sector Lending norms, what percentage of advances must be directed to agriculture by commercial banks?
EXPLANATION
RBI mandates that commercial banks allocate at least 18% of total advances to agriculture.
Which Act regulates banking sector operations and customer protection in India?
A
Banking Regulation Act, 1949
B
Securities Act, 1956
C
Insurance Act, 1938
D
Competition Act, 2002
Correct Answer:
A. Banking Regulation Act, 1949
EXPLANATION
The Banking Regulation Act, 1949 is the primary statute governing banks in India.
What is the current reverse repo rate as per RBI's latest monetary policy (2024-2025)?
A
5.75%
B
6.00%
C
6.25%
D
6.50%
EXPLANATION
The reverse repo rate is typically 50 bps below the repo rate, set at 6.00% in 2024-2025.
Which financial year did India adopt the Goods and Services Tax (GST)?
A
2015-16
B
2016-17
C
2017-18
D
2018-19
Correct Answer:
C. 2017-18
EXPLANATION
GST was implemented in India from July 1, 2017 (2017-18 financial year).
