RBI's Monetary Policy Committee (MPC) reviews rates how many times a year as per 2024 guidelines?

The correct answer is B: 6 times. As per RBI's framework, the MPC conducts 6 monetary policy reviews annually (bimonthly).

Which of the following is NOT a function of the RBI?

The correct answer is C: Managing stock exchanges. Stock exchanges are regulated by SEBI, not RBI. RBI issues currency, regulates monetary policy, and acts as banker to the government.

What does KYC stand for in banking terminology?

The correct answer is A: Know Your Client. KYC (Know Your Client) is a mandatory compliance process to verify customer identity and assess their financial profile.

A bank's provision coverage ratio (PCR) on Gross NPAs increased from 58% to 67% YoY. What does this signify?

The correct answer is B: The bank has made higher provisions, improving loss absorption capacity. PCR measures provisions made against Gross NPAs. An increase from 58% to 67% indicates the bank has provisioned more of its NPAs, improving its capacity to absorb potential losses and reducing future profit volatility.

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

Q.61 Easy General Awareness

Which organization regulates insurance companies in India?

A RBI

B SEBI

C IRDA (IRDAI)

D Ministry of Finance

Correct Answer: C. IRDA (IRDAI)

Explanation:

Insurance Regulatory and Development Authority of India (IRDAI) regulates and supervises insurance companies operating in India.

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Q.62 Easy General Awareness

What is the full form of RTGS?

A Real Time Gross Settlement

B Rapid Transfer and Global System

C Real Time Global Settlement

D Regulated Transaction Gross System

Correct Answer: A. Real Time Gross Settlement

Explanation:

RTGS (Real Time Gross Settlement) is a system for real-time transfer of funds and securities between banks in India.

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Q.63 Easy General Awareness

What does KYC stand for in banking?

A Know Your Client

B Know Your Country

C Know Your Capital

D Keep Your Code

Correct Answer: A. Know Your Client

Explanation:

KYC (Know Your Client) is a mandatory procedure for banks to verify customer identity and assess their financial profile to prevent fraud and money laundering.

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Q.64 Easy General Awareness

What is the maximum period for which a bank can classify an account as NPA (Non-Performing Asset)?

A 30 days of non-payment

B 90 days of non-payment

C 180 days of non-payment

D 365 days of non-payment

Correct Answer: B. 90 days of non-payment

Explanation:

RBI guidelines classify an account as NPA after 90 days of non-payment. This is the standard threshold for identifying non-performing assets in Indian banking.

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Q.65 Easy General Awareness

Which rate does the RBI use as the benchmark for transmission of monetary policy?

A Reverse Repo Rate

B Repo Rate

C Base Rate

D MCLR (Marginal Cost of Funds Based Lending Rate)

Correct Answer: B. Repo Rate

Explanation:

The Repo Rate is the primary instrument used by RBI for monetary policy transmission. Banks' lending rates are benchmarked against this rate.

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Q.66 Easy General Awareness

What does CASA stand for in banking terminology?

A Current Account and Savings Account

B Customer Asset and Secured Account

C Corporate Account and Savings Account

D Current and Secured Assets Account

Correct Answer: A. Current Account and Savings Account

Explanation:

CASA represents Current Account and Savings Account deposits, which are low-cost funding sources for banks and crucial for profitability metrics.

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Q.67 Easy General Awareness

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the overdraft limit for eligible beneficiaries?

A Rs. 5,000

B Rs. 10,000

C Rs. 15,000

D Rs. 20,000

Correct Answer: B. Rs. 10,000

Explanation:

PMJDY provides an overdraft facility of up to Rs. 10,000 to eligible account holders after 6 months of satisfactory operation of the account.

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Q.68 Easy General Awareness

What is the tenure for which RBI Governor is appointed?

A 3 years

B 5 years

C 4 years

D 6 years

Correct Answer: C. 4 years

Explanation:

The RBI Governor is appointed for a tenure of 4 years, after which reappointment is possible. The current Governor is Sanjay Malhotra (appointed December 2023).

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Q.69 Easy General Awareness

What is the primary objective of the Pradhan Mantri Mudra Yojana (PMMY)?

A To provide retail deposits to individuals

B To provide collateral-free loans to micro and small enterprises

C To regulate non-banking financial companies

D To encourage foreign direct investment

Correct Answer: B. To provide collateral-free loans to micro and small enterprises

Explanation:

PMMY aims to provide collateral-free loans to micro and small enterprises for business purposes, with loans up to Rs. 10 lakh under the scheme.

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Q.70 Easy General Awareness

As per the latest RBI guidelines (2024), what is the Statutory Liquidity Ratio (SLR) minimum requirement for Scheduled Commercial Banks?

A 16%

B 18%

C 20%

D 22%

Correct Answer: B. 18%

Explanation:

As of 2024, the SLR minimum requirement is 18% of the bank's Net Demand and Time Liabilities (NDTL).

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