Q.131
Medium
A bank's deposits grew from ₹3,00,000 crore to ₹3,54,000 crore in one year. What is the YoY growth rate?
Explanation:
Growth = (3,54,000 - 3,00,000) / 3,00,000 × 100 = 54,000/3,00,000 × 100 = 18%.
Q.132
Easy
What is the maximum loan amount eligible under RBI's Pradhan Mantri Mudra Yojana (PMMY) as of 2024?
A
₹5 lakh
B
₹10 lakh
C
₹15 lakh
D
₹25 lakh
Correct Answer:
B. ₹10 lakh
Explanation:
PMMY provides loans up to ₹10 lakh for micro and small enterprises without requiring collateral.
Q.133
Medium
A bank's Provision Coverage Ratio (PCR) improved from 62% to 71% YoY. This indicates:
A
Deteriorating asset quality
B
Improving asset quality and risk management
C
Increased loan disbursement
D
Lower profitability
Correct Answer:
B. Improving asset quality and risk management
Explanation:
Higher PCR indicates better provision coverage against stressed assets, reflecting stronger risk management and improving asset quality.
Q.134
Medium
Under RBI's Know Your Customer (KYC) norms, what is the minimum frequency for KYC updation?
A
Every year
B
Every 2 years
C
Every 5 years
D
Every 10 years
Correct Answer:
C. Every 5 years
Explanation:
RBI mandates KYC updation every 10 years for regular customers, though higher-risk categories may require more frequent updates.
Q.135
Hard
A bank offers a Fixed Deposit at 6.2% p.a. compounded quarterly for 2 years on ₹1 lakh. What is the maturity amount? (Use: (1.0155)^8 ≈ 1.128)
A
₹1,12,800
B
₹1,12,700
C
₹1,13,600
D
₹1,14,500
Correct Answer:
A. ₹1,12,800
Explanation:
Quarterly rate = 6.2%/4 = 1.55%, n = 8 quarters. Amount = 1,00,000 × (1.0155)^8 ≈ 1,00,000 × 1.128 = ₹1,12,800.
Q.136
Hard
Which of the following is a correct statement about RBI's Standing Deposit Facility (SDF) as per 2024 norms?
A
It offers higher returns than repo operations
B
It is a facility for banks to deposit funds at a fixed rate
C
It provides overnight liquidity at a fixed rate below repo
D
It is mandatory for all banks
Correct Answer:
C. It provides overnight liquidity at a fixed rate below repo
Explanation:
The Standing Deposit Facility allows banks to place funds with RBI at a fixed rate (typically 25-50 bps below repo) to manage liquidity surplus.
Q.137
Hard
A bank's Asset Quality Indicator shows Net NPA ratio of 0.8% with Gross NPA ratio of 2.5%. What is the Provision Coverage Ratio?
A
32%
B
68%
C
75.2%
D
Cannot be determined
Explanation:
PCR = (Gross NPA - Net NPA) / Gross NPA × 100 = (2.5 - 0.8) / 2.5 × 100 = 1.7/2.5 × 100 = 68%.
Q.138
Easy
A bank's Net NPA ratio decreased from 2.5% to 1.8% year-on-year. What does this indicate?
A
Improvement in asset quality and better credit management
B
Decrease in total advances given by the bank
C
Increase in provision coverage ratio without improvement in asset quality
D
Reduction in the bank's profitability margins
Correct Answer:
A. Improvement in asset quality and better credit management
Explanation:
A lower Net NPA ratio indicates fewer non-performing assets relative to total advances, showing better asset quality and credit risk management by the bank.
Q.139
Medium
Under Basel III norms, what is the minimum Common Equity Tier 1 (CET1) capital ratio for banks in India as per RBI guidelines 2024?
A
5.5%
B
6.5%
C
7.5%
D
8.5%
Explanation:
RBI mandates a minimum CET1 capital ratio of 6.5% for Indian banks under Basel III framework to ensure financial stability.
Q.140
Easy
A savings account holder deposited ₹50,000 at 4% p.a. compounded quarterly. What will be the amount after 2 years?
A
₹54,120.25
B
₹54,061.01
C
₹54,200.50
D
₹54,000.00
Correct Answer:
A. ₹54,120.25
Explanation:
Using A = P(1 + r/400)^n where P=50000, r=4, n=8 quarters: A = 50000(1.01)^8 = ₹54,120.25
