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

Q.131 Medium General Awareness

What is the significance of the CRR (Cash Reserve Ratio)?

A It is the interest rate charged on loans

B It is the minimum percentage of deposits banks must keep with RBI as cash

C It is the lending rate between banks

D It is the rate of inflation adjustment

Correct Answer: B. It is the minimum percentage of deposits banks must keep with RBI as cash

Explanation:

CRR is the percentage of bank deposits that commercial banks are required to keep as cash reserves with the RBI without earning any interest.

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Q.132 Medium General Awareness

What is the objective of the Pradhan Mantri Fasal Bima Yojana (PMFBY)?

A To provide health insurance to farmers

B To provide crop insurance coverage against crop failure

C To subsidize fertilizer costs

D To provide agricultural loans at zero interest

Correct Answer: B. To provide crop insurance coverage against crop failure

Explanation:

PMFBY provides comprehensive crop insurance coverage to farmers against crop failure due to natural calamities, pests, and diseases at affordable premiums.

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Q.133 Medium General Awareness

What is the current Inflation Target set by RBI for monetary policy?

A 2% with a band of ±1%

B 4% with a band of ±2%

C 6% with a band of ±1.5%

D 3% with a band of ±0.5%

Correct Answer: B. 4% with a band of ±2%

Explanation:

RBI's inflation target is 4% (Consumer Price Index) with an upper tolerance of 6% and lower tolerance of 2%, as per the RBI Act amendment.

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Q.134 Medium General Awareness

What is the full form of SWIFT?

A System for Worldwide International Financial Transactions

B Society for Worldwide Interbank Financial Telecommunication

C Software for World Integrated Financial Trading

D Secure Web Interface for Financial Transactions

Correct Answer: B. Society for Worldwide Interbank Financial Telecommunication

Explanation:

SWIFT is the Society for Worldwide Interbank Financial Telecommunication, a secure international messaging system used for cross-border fund transfers.

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Q.135 Medium General Awareness

Which of the following is NOT covered under the definition of a 'Non-Banking Financial Company' (NBFC)?

A Finance companies

B Merchant banks

C Commercial banks

D Investment companies

Correct Answer: C. Commercial banks

Explanation:

Commercial banks are not NBFCs. NBFCs are financial institutions that provide lending and other financial services but cannot accept deposits from the general public.

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Q.136 Medium General Awareness

Which committee was constituted to review the regulatory framework for NBFCs in India?

A Narasimhan Committee

B Usha Thorat Committee

C Tarapore Committee

D Chakraborty Committee

Correct Answer: B. Usha Thorat Committee

Explanation:

The Usha Thorat Committee (2023) was constituted to review the regulatory framework for Non-Banking Financial Companies (NBFCs) in India.

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Q.137 Medium General Awareness

As per DICGC norms (2024), what is the maximum deposit insurance coverage per depositor per bank?

A ₹5 lakhs

B ₹10 lakhs

C ₹50 lakhs

D ₹1 crore

Correct Answer: A. ₹5 lakhs

Explanation:

The maximum deposit insurance coverage under DICGC is ₹5 lakhs per depositor per bank as per the current norms.

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Q.138 Medium General Awareness

What does the term 'Statutory Liquidity Ratio (SLR)' refer to in banking?

A Percentage of deposits banks must maintain in government securities

B Percentage of deposits banks must maintain as cash reserves

C Maximum lending limit for banks

D Interest rate charged by RBI on loans

Correct Answer: A. Percentage of deposits banks must maintain in government securities

Explanation:

SLR refers to the percentage of their deposits that commercial banks must maintain in the form of liquid assets like government securities.

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Q.139 Medium General Awareness

Which of the following payment systems is operated by NPCI and is used for retail payments?

A NEFT

B UPI

C RTGS

D CHIPS

Correct Answer: B. UPI

Explanation:

UPI (Unified Payments Interface) is operated by NPCI for retail payments. NEFT and RTGS are operated by RBI, while CHIPS is a US-based system.

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Q.140 Medium General Awareness

What is the current policy repo rate set by RBI as of 2024-2025?

A 4.5%

B 5.75%

C 6.5%

D 7.0%

Correct Answer: C. 6.5%

Explanation:

The RBI's policy repo rate stands at 6.5% as per the latest monetary policy decisions in 2024-2025.

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