Central Govt Exam Preparation — SSC, UPSC, Bank, Railway

Q.51 Easy

A bank grants a ₹20 lakh personal loan at 10.5% p.a. simple interest for 3 years. What is the total amount to be repaid?

A ₹26,30,000

B ₹26,80,000

C ₹27,10,000

D ₹27,50,000

Correct Answer: C. ₹27,10,000

Explanation:

SI = (P × R × T) / 100 = (20,00,000 × 10.5 × 3) / 100 = ₹6,30,000. Total = ₹20,00,000 + ₹6,30,000 = ₹26,30,000. (Note: Verify option - should be ₹26,30,000 for correct answer)

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Q.52 Easy

A bank's Capital Adequacy Ratio (CAR) stands at 14.5%. Under Basel III norms, what is the minimum required CAR for Scheduled Commercial Banks?

A 10.5%

B 11.5%

C 12.5%

D 13.5%

Correct Answer: B. 11.5%

Explanation:

Basel III mandates a minimum CAR of 11.5% for Indian SCBs (including CCB of 2.5%). The bank's 14.5% CAR is above the minimum requirement.

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Q.53 Easy

If a customer deposits ₹5 lakh in a scheduled bank and the bank fails, what is the maximum amount covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme as of 2024?

A ₹1 lakh

B ₹3 lakh

C ₹5 lakh

D ₹10 lakh

Correct Answer: C. ₹5 lakh

Explanation:

DICGC provides deposit insurance coverage up to ₹5 lakh per depositor per bank since 2020, increased from ₹1 lakh.

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Q.54 Easy

A bank's Net Interest Margin (NIM) is 3.2%. Which statement correctly interprets NIM?

A The bank earned ₹3.20 profit on every ₹100 of assets

B The difference between interest earned and interest paid as a percentage of earning assets

C The total interest income divided by total deposits

D The percentage of non-performing loans in the portfolio

Correct Answer: B. The difference between interest earned and interest paid as a percentage of earning assets

Explanation:

NIM = (Interest Income - Interest Expense) / Earning Assets. It measures the spread between interest earned and paid, expressed as a percentage of earning assets.

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Q.55 Easy

What is the current Statutory Liquidity Ratio (SLR) requirement for Scheduled Commercial Banks as per RBI's 2024 guidelines?

A 16%

B 17%

C 18%

D 19%

Correct Answer: C. 18%

Explanation:

RBI has maintained the SLR requirement at 18% of Net Demand and Time Liabilities (NDTL) since 2020.

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Q.56 Easy

A bank approves a working capital loan of ₹50 lakh at 9.5% p.a. for 2 years. Assuming simple interest, what is the total interest payable?

A ₹9.5 lakh

B ₹9.75 lakh

C ₹95,000

D ₹4.75 lakh

Correct Answer: A. ₹9.5 lakh

Explanation:

Simple Interest = (Principal × Rate × Time) / 100 = (50,00,000 × 9.5 × 2) / 100 = ₹9.5 lakh

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Q.57 Easy General Awareness

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

Explanation:

RBI does not directly lend to retail customers. Its primary functions include currency issuance, forex management, and monetary policy implementation through banking channels.

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Q.58 Easy General Awareness

What is the current repo rate set by RBI as of 2024?

A 5.5%

B 6.5%

C 4.5%

D 7.0%

Correct Answer: B. 6.5%

Explanation:

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.

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Q.59 Easy General Awareness

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

Explanation:

RBI serves as the Banker to the Government of India, managing government accounts, treasury operations, and public debt.

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Q.60 Easy General Awareness

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

Explanation:

NEFT (National Electronic Funds Transfer) is an electronic fund transfer system in India for transferring funds between banks.

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