Which committee's recommendations led to the implementation of Basel III norms in Indian banking?

The correct answer is D: Basel Committee on Banking Supervision. Basel III norms were developed by the Basel Committee on Banking Supervision and adopted globally to strengthen banking sector resilience post-2008 financial crisis.

Under RBI's revised norms for 2024, what is the minimum Common Equity Tier 1 (CET1) ratio that banks must maintain?

The correct answer is B: 6.5%. As per Basel III implementation in India, RBI mandates a minimum CET1 ratio of 6.5% (including capital conservation buffer of 1.875%), increased from the earlier 5.5%.

A bank's Provision Coverage Ratio (PCR) improved from 62% to 71% YoY. This indicates:

The correct answer is B: Improving asset quality and risk management. Higher PCR indicates better provision coverage against stressed assets, reflecting stronger risk management and improving asset quality.

Which of the following is NOT covered under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

The correct answer is D: Critical illness coverage. PMJJBY provides only death cover (natural and accidental), not critical illness coverage. For critical illness, Ayushman Bharat is a separate scheme.

What is the maximum deposit amount covered under DICGC insurance scheme as of 2024?

The correct answer is C: ₹5 lakh per depositor per bank. DICGC (now DIGC) covers maximum ₹5 lakh per depositor per bank since May 2021

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)

Take Test

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.

Take Test

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.

Take Test

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.

Take Test

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.

Take Test

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: B. ₹9.75 lakh

Explanation:

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

Take Test

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.

Take Test

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.

Take Test

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.

Take Test

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.

Take Test

All Subjects & Topics