Q.291
Hard
Under Basel III norms, what is the additional capital buffer (Countercyclical Buffer) requirement during periods of excessive credit growth?
A
0.625% to 2.5%
B
1% to 3%
C
0.5% to 1.5%
D
2% to 4%
Correct Answer:
A. 0.625% to 2.5%
Explanation:
Basel III prescribes a Countercyclical Buffer ranging from 0.625% to 2.5% of risk-weighted assets during credit booms.
Q.292
Medium
Which RBI directive mandates banks to maintain Statutory Liquidity Ratio (SLR) at a minimum of what percentage of NDTL?
A
18%
B
21.5%
C
19.5%
D
20%
Explanation:
SLR is currently maintained at 21.5% of Net Demand and Time Liabilities (NDTL) as per RBI guidelines.
Q.293
Easy
What is the primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
A
To provide life insurance to poor households
B
To ensure financial inclusion through universal access to banking services
C
To regulate credit card issuance
D
To monitor stock market transactions
Correct Answer:
B. To ensure financial inclusion through universal access to banking services
Explanation:
PMJDY aims at financial inclusion by providing zero-balance bank accounts and access to banking services for all.
Q.294
Medium
In data interpretation for banking exams, if a bank's Net Interest Income (NII) increases by 15% but Net Profit decreases by 5%, what could be the likely reason?
A
Decrease in operating expenses
B
Increase in provisions and contingencies or operating expenses
C
Improvement in asset quality
D
Increase in advances
Correct Answer:
B. Increase in provisions and contingencies or operating expenses
Explanation:
If NII increases but Net Profit decreases, it indicates higher provisions/contingencies or elevated operating expenses offsetting income gains.
Q.295
Medium
Which term refers to the difference between the Repo Rate and the Reverse Repo Rate set by RBI?
A
Corridor
B
Spread
C
Liquidity Adjustment Facility (LAF)
D
Policy Rate
Correct Answer:
A. Corridor
Explanation:
The corridor refers to the band between Repo Rate (upper ceiling) and Reverse Repo Rate (lower floor) for overnight lending.
Q.296
Easy
What is the full form of SWIFT in banking operations?
A
Secure World Internet Financial Transfer
B
Society for Worldwide Interbank Financial Telecommunication
C
Standard Worldwide International Financial Technology
D
Systematic World Inter-Financial Transfer
Correct Answer:
B. Society for Worldwide Interbank Financial Telecommunication
Explanation:
SWIFT is the Society for Worldwide Interbank Financial Telecommunication, used for secure international fund transfers.
Q.297
Medium
As per recent RBI guidelines (2024), what is the threshold loan amount for priority sector lending to agriculture?
A
₹50 lakhs
B
₹75 lakhs
C
₹1 crore
D
₹2 crores
Correct Answer:
A. ₹50 lakhs
Explanation:
RBI prescribes priority sector lending to agriculture with a loan limit of ₹50 lakhs for individual farmers.
Q.298
Medium
Which of the following is a characteristic of a Certificate of Deposit (CD)?
A
It is a demand deposit
B
It is a negotiable, fixed-income security issued at a discount
C
It offers variable interest rates
D
It can be withdrawn without penalty before maturity
Correct Answer:
B. It is a negotiable, fixed-income security issued at a discount
Explanation:
CDs are negotiable instruments issued by banks at a discount, sold in the money market, with fixed maturity periods.
Q.299
Medium
What does CASA ratio signify in banking?
A
Current Account to Savings Account ratio - measure of deposit mix
B
Capital Adequacy Stress Assessment ratio
C
Credit Assessment and Sanction Authority
D
Compliance and Safety Analysis ratio
Correct Answer:
A. Current Account to Savings Account ratio - measure of deposit mix
Explanation:
CASA ratio reflects the proportion of Current Accounts to Savings Accounts, indicating low-cost deposit base quality.
Q.300
Hard
Which RBI scheme allows banks to lend against government securities as collateral?
A
Liquidity Coverage Ratio (LCR)
B
Marginal Standing Facility (MSF)
C
Securities borrowing and lending scheme
D
Open Market Operations (OMO)
Correct Answer:
C. Securities borrowing and lending scheme
Explanation:
Securities borrowing and lending allows banks to manage their security portfolios by borrowing/lending government securities.
