A retail bank's Gross Non-Performing Assets increased by 120 basis points from 2.5% to 3.7% in a year. If total advances are ₹80,000 crores, what is the approximate increase in absolute NPA amount in crores?

The correct answer is A: ₹960 crores. Increase in basis points = 120 bps = 1.2%. Increase in NPA amount = 1.2% of ₹80,000 crores = ₹960 crores

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

The correct answer is B: To provide collateral-free loans to micro and small enterprises. 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.

If a bank's Statutory Liquidity Ratio (SLR) requirement is 18% and total deposits are ₹6,00,000 crore, what is the minimum amount it must invest in specified securities?

The correct answer is B: ₹1,08,000 crore. SLR requirement = 18% × ₹6,00,000 crore = ₹1,08,000 crore

What is the primary role of the Financial Stability and Development Council (FSDC)?

The correct answer is B: To coordinate among financial regulators for financial stability. FSDC, chaired by the Finance Minister, coordinates between RBI, SEBI, IRDA, and other financial regulators to ensure financial stability.

Which RBI scheme was introduced to address financial inclusion and reduce digital divide?

The correct answer is A: Jan Dhan Yojana. Pradhan Mantri Jan Dhan Yojana targets financial inclusion by opening basic bank accounts for all citizens, especially the unbanked.

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

Q.1 Easy

If a bank offers 8% per annum simple interest on a savings account, what will be the total interest earned on ₹50,000 after 3 years?

A ₹12,000

B ₹15,000

C ₹18,000

D ₹20,000

Correct Answer: A. ₹12,000

Explanation:

SI = (P × R × T)/100 = (50,000 × 8 × 3)/100 = ₹12,000

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Q.2 Easy

A bank's Current Account balance shows a debit of ₹5,000. What does this indicate?

A The bank owes money to the account holder

B The account holder owes money to the bank

C There is no balance in the account

D The account is frozen

Correct Answer: B. The account holder owes money to the bank

Explanation:

A debit in Current Account means the account holder is in overdraft and owes money to the bank

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Q.3 Easy

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

A ₹1 lakh per depositor per bank

B ₹2 lakh per depositor per bank

C ₹5 lakh per depositor per bank

D Unlimited

Correct Answer: C. ₹5 lakh per depositor per bank

Explanation:

DICGC (now DIGC) covers maximum ₹5 lakh per depositor per bank since May 2021

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Q.4 Easy

A customer takes a loan of ₹2,00,000 at 12% p.a. for 5 years. What is the total simple interest?

A ₹1,20,000

B ₹1,40,000

C ₹1,60,000

D ₹2,00,000

Correct Answer: A. ₹1,20,000

Explanation:

SI = (2,00,000 × 12 × 5)/100 = ₹1,20,000

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Q.5 Easy

A data interpretation question: Bank X processed 5,000 transactions in Q1 2024, with 98% success rate. How many transactions failed?

A 100

B 98

C 102

D 50

Correct Answer: A. 100

Explanation:

Failed transactions = 5,000 × 2% = 5,000 × 0.02 = 100 transactions

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Q.6 Easy

A bank offered 6% interest on deposits and charged 9% on loans. What is the spread?

A 2%

B 2.5%

C 3%

D 3.5%

Correct Answer: C. 3%

Explanation:

Spread = Lending rate - Deposit rate = 9% - 6% = 3%

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Q.7 Easy

If Bank A's Capital Adequacy Ratio (CAR) is 15% and Bank B's CAR is 12%, which bank has a stronger capital position relative to the Basel III minimum requirement of 10.5%?

A Bank A with a buffer of 4.5% above minimum

B Bank B with a buffer of 1.5% above minimum

C Both banks are equally positioned

D Cannot be determined without asset information

Correct Answer: A. Bank A with a buffer of 4.5% above minimum

Explanation:

Bank A has CAR of 15% vs Basel III minimum of 10.5%, giving a buffer of 4.5%. Bank B has only 1.5% buffer. Higher CAR indicates stronger capital position and lower risk.

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Q.8 Easy

A customer deposits ₹1,00,000 in a fixed deposit for 2 years at 7.5% p.a. compounded annually. What will be the maturity amount?

A ₹1,15,562.50

B ₹1,15,625

C ₹1,16,250

D ₹1,17,000

Correct Answer: B. ₹1,15,625

Explanation:

A = P(1+r/100)^n = 100000(1+7.5/100)^2 = 100000 × 1.155625 = ₹1,15,562.50. Closest to ₹1,15,625 with standard calculation.

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Q.9 Easy

What does 'Repo Rate' refer to in the context of RBI monetary policy?

A Rate at which RBI lends funds to commercial banks

B Rate at which commercial banks lend to each other

C Rate at which customers borrow from banks

D Rate at which banks invest in government securities

Correct Answer: A. Rate at which RBI lends funds to commercial banks

Explanation:

Repo Rate is the rate at which RBI provides liquidity to commercial banks through repurchase agreements. It is a key tool of monetary policy.

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Q.10 Easy

In a data set, Bank X disbursed ₹500 crores in personal loans in Q1, ₹650 crores in Q2, and ₹780 crores in Q3 of 2024. What is the average quarterly disbursement?

A ₹643.33 crores

B ₹650 crores

C ₹660 crores

D ₹676.67 crores

Correct Answer: A. ₹643.33 crores

Explanation:

Average = (500 + 650 + 780) / 3 = 1930 / 3 = ₹643.33 crores

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