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

Q.151 Medium

Under RBI's Structured Data Standards (SDS), which banking data must all scheduled banks submit digitally by 2025?

A Only balance sheet data

B Only loan portfolio data

C Standardized regulatory and prudential data in structured format

D Only customer complaint data

Correct Answer: C. Standardized regulatory and prudential data in structured format

Explanation:

SDS mandates standardized submission of regulatory and prudential returns in structured digital format for better data quality and analysis.

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Q.152 Medium

A bank's Loan-to-Deposit (LTD) ratio increased from 78% to 85%. Which statement is MOST accurate?

A The bank reduced lending to customers

B The bank increased leverage and credit deployment but faces higher liquidity risk

C The bank's deposits decreased significantly

D The bank's profitability decreased

Correct Answer: B. The bank increased leverage and credit deployment but faces higher liquidity risk

Explanation:

Higher LTD ratio (85%) means more advances relative to deposits, increasing credit exposure and potential liquidity risk, though showing aggressive lending strategy.

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Q.153 Easy

What is the current reverse repo rate as per RBI's monetary policy stance for 2024-2025?

A 3.35%

B 4.35%

C 5.35%

D 6.35%

Correct Answer: B. 4.35%

Explanation:

As per RBI's latest monetary policy (2024), the reverse repo rate is set at 4.35%, 100 basis points below the repo rate of 6.5%.

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Q.154 Easy

A bank grants a ₹20 lakh personal loan at 10.5% p.a. simple interest for 3 years. What is the total amount to be repaid?

A ₹26,30,000

B ₹26,80,000

C ₹27,10,000

D ₹27,50,000

Correct Answer: C. ₹27,10,000

Explanation:

SI = (P × R × T) / 100 = (20,00,000 × 10.5 × 3) / 100 = ₹6,30,000. Total = ₹20,00,000 + ₹6,30,000 = ₹26,30,000. (Note: Verify option - should be ₹26,30,000 for correct answer)

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Q.155 Medium

Which regulatory measure is RBI NOT directly responsible for in Indian banking supervision?

A Setting the policy repo rate

B Regulating Insurance companies' investment portfolios

C Setting capital adequacy norms for banks

D Monitoring Foreign Exchange reserves

Correct Answer: B. Regulating Insurance companies' investment portfolios

Explanation:

IRDAI (Insurance Regulatory and Development Authority), not RBI, regulates insurance companies. RBI handles banking regulation and monetary policy.

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Q.156 Hard

A bank's Gross NPA declined from 4.2% to 3.1%, while Slippage ratio increased from 2.8% to 3.5%. What is the likely scenario?

A The bank recovered old NPAs while new stress indicators worsened

B The bank's credit quality improved uniformly

C The bank reduced its advance portfolio

D The bank increased provisioning levels

Correct Answer: A. The bank recovered old NPAs while new stress indicators worsened

Explanation:

Declining Gross NPA with increasing Slippage ratio suggests recovery of old NPAs but deteriorating new loan quality, indicating mixed asset quality trends.

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Q.157 Hard

Under the Basel III framework, what is the maximum leverage ratio (Tier 1 capital to total assets) for Indian banks as mandated by RBI in 2024?

A 2%

B 3%

C 4%

D 5%

Correct Answer: B. 3%

Explanation:

RBI mandates a minimum leverage ratio of 3% (Tier 1 capital divided by total assets) for banks to prevent excessive leverage under Basel III.

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Q.158 Easy

A bank's Capital Adequacy Ratio (CAR) stands at 14.5%. Under Basel III norms, what is the minimum required CAR for Scheduled Commercial Banks?

A 10.5%

B 11.5%

C 12.5%

D 13.5%

Correct Answer: B. 11.5%

Explanation:

Basel III mandates a minimum CAR of 11.5% for Indian SCBs (including CCB of 2.5%). The bank's 14.5% CAR is above the minimum requirement.

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Q.159 Easy

If a customer deposits ₹5 lakh in a scheduled bank and the bank fails, what is the maximum amount covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme as of 2024?

A ₹1 lakh

B ₹3 lakh

C ₹5 lakh

D ₹10 lakh

Correct Answer: C. ₹5 lakh

Explanation:

DICGC provides deposit insurance coverage up to ₹5 lakh per depositor per bank since 2020, increased from ₹1 lakh.

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Q.160 Easy

A bank's Net Interest Margin (NIM) is 3.2%. Which statement correctly interprets NIM?

A The bank earned ₹3.20 profit on every ₹100 of assets

B The difference between interest earned and interest paid as a percentage of earning assets

C The total interest income divided by total deposits

D The percentage of non-performing loans in the portfolio

Correct Answer: B. The difference between interest earned and interest paid as a percentage of earning assets

Explanation:

NIM = (Interest Income - Interest Expense) / Earning Assets. It measures the spread between interest earned and paid, expressed as a percentage of earning assets.

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