Q.71
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.72
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.73
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.74
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.75
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.76
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.77
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.
Q.78
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.
Q.79
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.
Q.80
Medium
A bank's Return on Assets (ROA) improved from 0.8% to 1.1% year-on-year. What is the percentage point improvement?
A
0.3 percentage points
B
37.5% improvement
C
Both A and B are correct
D
1.9 percentage points
Correct Answer:
C. Both A and B are correct
Explanation:
The improvement is 0.3 percentage points (1.1% - 0.8%). In relative terms, this represents a 37.5% increase (0.3/0.8 × 100).
