Q.141
Medium
RBI's Current Account and Savings Account (CASA) ratio benchmark for banks is typically aimed at achieving what percentage?
A
30-35%
B
35-40%
C
40-45%
D
50%+
Correct Answer:
B. 35-40%
Explanation:
A healthy CASA ratio of 35-40% indicates banks have a stable, low-cost deposit base, which improves net interest margins.
Q.142
Easy
A bank's loan portfolio shows: Retail advances ₹2,50,000 cr, Corporate advances ₹3,50,000 cr, Agriculture ₹1,50,000 cr. What is the retail advance percentage?
A
25%
B
35%
C
33.33%
D
31.25%
Correct Answer:
D. 31.25%
Explanation:
Retail = 2,50,000 ÷ (2,50,000 + 3,50,000 + 1,50,000) × 100 = 2,50,000 ÷ 8,00,000 × 100 = 31.25%
Q.143
Medium
Which of the following is NOT covered under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
A
Death due to natural causes
B
Accidental death
C
Disability coverage
D
Critical illness coverage
Correct Answer:
D. Critical illness coverage
Explanation:
PMJJBY provides only death cover (natural and accidental), not critical illness coverage. For critical illness, Ayushman Bharat is a separate scheme.
Q.144
Medium
A bank's Return on Assets (ROA) improved from 0.8% to 1.1% while Return on Equity (ROE) remained at 12%. What can be inferred?
A
Profitability improved with better asset utilization
B
The bank increased its leverage significantly
C
Deposits decreased while profits increased
D
Operating costs reduced but asset base remains unchanged
Correct Answer:
A. Profitability improved with better asset utilization
Explanation:
Improved ROA indicates better profitability relative to total assets. Stable ROE with improved ROA suggests maintained leverage with better operational efficiency.
Q.145
Easy
Under Priority Sector Lending norms, what is the minimum percentage banks must lend to agriculture as of 2024?
Explanation:
RBI mandates 18% of net bank credit to agriculture sector as part of Priority Sector Lending guidelines for 2024.
Q.146
Hard
A bank identifies a stressed asset with ₹10 crore outstanding. It makes a provision of 60%. Later, it recovers ₹2 crore. What is the net impact on profit & loss?
A
Loss of ₹4 crore
B
Gain of ₹2 crore
C
Loss of ₹6 crore
D
Gain of ₹4 crore
Correct Answer:
B. Gain of ₹2 crore
Explanation:
Provision made: ₹6 crore (charged as loss). Recovery: ₹2 crore (credited to P&L). Net impact: ₹2 crore gain (recovery > provision reversal applicable).
Q.147
Medium
Which RBI circular (2024) introduced the Liquidity Coverage Ratio (LCR) requirement for Scheduled Commercial Banks?
A
As per Basel I framework
B
As per Basel II framework
C
As per Basel III framework
D
As per RBI guidelines effective 2018 onwards, maintained in 2024
Correct Answer:
C. As per Basel III framework
Explanation:
LCR was introduced under Basel III to ensure banks maintain adequate high-quality liquid assets to survive acute stress scenarios.
Q.148
Medium
A customer avails a ₹25 lakh home loan at 7.2% p.a. for 20 years (EMI basis). Approximately what will be the total interest paid?
A
₹10,50,000
B
₹12,00,000
C
₹13,50,000
D
₹15,00,000
Correct Answer:
C. ₹13,50,000
Explanation:
Using home loan EMI formula, total interest for ₹25 lakh at 7.2% over 240 months ≈ ₹13,50,000 (approximate calculation based on standard amortization).
Q.149
Easy
What is the maximum limit for coverage under the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per 2024 regulations?
A
₹1,00,000 per depositor per bank
B
₹2,00,000 per depositor per bank
C
₹5,00,000 per depositor per bank
D
₹10,00,000 per depositor per bank
Correct Answer:
C. ₹5,00,000 per depositor per bank
Explanation:
DICGC provides deposit insurance coverage of ₹5,00,000 per depositor per bank (increased from ₹1,00,000 in 2020).
Q.150
Easy
A bank's Cost-to-Income ratio improved from 52% to 48%. What does this indicate about operational efficiency?
A
The bank became less efficient
B
Operating costs increased relative to income
C
The bank improved its operational efficiency and cost management
D
The bank's profit margins decreased
Correct Answer:
C. The bank improved its operational efficiency and cost management
Explanation:
Lower Cost-to-Income ratio (48% vs 52%) means lower operating costs relative to operating income, indicating better operational efficiency.
