According to RBI's Monetary Policy 2024-2025, what is the repo rate corridor framework (Repo Rate ± corridor width)?
ABase rate ± 0.25%
BRepo rate ± 0.50%
CPolicy rate ± 0.50%
DMSF rate ± 0.75%
Correct Answer:
C. Policy rate ± 0.50%
Explanation:
RBI maintains a corridor with repo rate (policy rate) at the center, with Standing Deposit Facility (SDF) at -50 bps and Marginal Standing Facility (MSF) at +50 bps.
Under the Payment Systems Operator (PSO) framework by RBI, what is the maximum transaction value limit for prepaid payment instruments without KYC?
A₹10,000
B₹25,000
C₹50,000
D₹1,00,000
Correct Answer:
A. ₹10,000
Explanation:
RBI's guidelines on prepaid payment instruments specify that transactions up to ₹10,000 can be conducted without full KYC verification for semi-closed systems.
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?
A₹960 crores
B₹1,200 crores
C₹1,440 crores
D₹2,960 crores
Correct Answer:
A. ₹960 crores
Explanation:
Increase in basis points = 120 bps = 1.2%. Increase in NPA amount = 1.2% of ₹80,000 crores = ₹960 crores
What is the primary purpose of the Basel III accord's countercyclical capital buffer (CCyB) requirement for banks?
ATo increase bank profits during economic downturns
BTo build additional capital during periods of excessive credit growth to absorb losses during downturns
CTo eliminate the need for regulatory oversight
DTo reduce banks' lending capacity permanently
Correct Answer:
B. To build additional capital during periods of excessive credit growth to absorb losses during downturns
Explanation:
The CCyB is a macroprudential tool requiring banks to hold additional capital (0-2.5% of RWA) during periods of rapid credit expansion, enabling them to lend counter-cyclically during downturns.
