Central Exam — Bank PO / Clerk / RBI — Banking Awareness
UPSC · SSC · Bank · Railway · NDA — Central Government Exam MCQ Practice
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in Banking Awareness
Q.1
Hard
Banking Awareness
Under the Priority Sector Lending norms, what percentage of advances must be directed to agriculture by commercial banks?
Correct Answer:
B. 18%
Explanation:
RBI mandates that commercial banks allocate at least 18% of total advances to agriculture.
Q.2
Hard
Banking Awareness
What is the statutory Liquidity Ratio (SLR) requirement for banks as per RBI guidelines (2024)?
Correct Answer:
B. 20%
Explanation:
RBI maintains the SLR requirement at 18% with recent adjustments around 20% for specific instruments.
Q.3
Hard
Banking Awareness
Which of the following factors is NOT considered while calculating the Credit Risk Weight of an asset under Basel III?
Correct Answer:
D. Branch location of bank
Explanation:
Branch location is not a factor in risk weighting. Nature of borrower, maturity, and collateral are key factors.
Q.4
Hard
Banking Awareness
Under Unified Payments Interface (UPI) 2.0, what is the new feature introduced for offline transactions?
Correct Answer:
B. Offline transaction capability up to Rs. 200
Explanation:
UPI 2.0 introduced offline transaction capability allowing payments without internet connectivity.
Q.5
Hard
Banking Awareness
What is the implementation timeline for the Indian Banks' Association (IBA) model on stress testing for credit risk?
Correct Answer:
A. Quarterly basis
Explanation:
Banks conduct stress tests on a quarterly basis as per RBI guidelines and IBA framework.
Q.6
Hard
Banking Awareness
Which of the following IS a characteristic of a Scheduled Bank as per RBI definitions?
Correct Answer:
B. Minimum paid-up capital and reserves of Rs. 5 lakh
Explanation:
A Scheduled Bank must have minimum paid-up capital and reserves of Rs. 5 lakh as per RBI definitions.