Q.121
Easy
RBI's Monetary Policy Committee (MPC) reviews rates how many times a year as per 2024 guidelines?
A
4 times
B
6 times
C
8 times
D
12 times
Correct Answer:
B. 6 times
Explanation:
As per RBI's framework, the MPC conducts 6 monetary policy reviews annually (bimonthly).
Q.122
Easy
A bank's Net Interest Margin (NIM) increased from 2.8% to 3.1% in FY2024. What is the percentage point increase?
A
0.3 percentage points
B
1.07%
C
10.7%
D
0.03%
Correct Answer:
A. 0.3 percentage points
Explanation:
The difference is 3.1% - 2.8% = 0.3 percentage points. This is different from percentage change.
Q.123
Medium
Under RBI's Priority Sector Lending (PSL) norms, what is the minimum percentage of advances that scheduled commercial banks must lend to priority sector?
Explanation:
RBI mandates 40% of net bank credit to be allocated to Priority Sector Lending for scheduled commercial banks.
Q.124
Easy
A bank has Total Assets of ₹5,00,000 crore and Total Liabilities of ₹4,70,000 crore. What is the bank's Equity?
A
₹30,000 crore
B
₹970,000 crore
C
₹470,000 crore
D
Cannot be determined
Correct Answer:
A. ₹30,000 crore
Explanation:
Equity = Assets - Liabilities = ₹5,00,000 crore - ₹4,70,000 crore = ₹30,000 crore.
Q.125
Medium
If a bank's Return on Assets (ROA) is 1.2% and Total Assets are ₹8 lakh crore, what is the bank's Net Profit?
A
₹96 crore
B
₹960 crore
C
₹9,600 crore
D
₹96,000 crore
Correct Answer:
C. ₹9,600 crore
Explanation:
Net Profit = ROA × Total Assets = 1.2% × ₹8,00,000 crore = ₹9,600 crore.
Q.126
Medium
RBI's Liquidity Coverage Ratio (LCR) requirement for banks is minimum how much as of 2024?
A
75%
B
85%
C
100%
D
110%
Explanation:
As per Basel III implementation in India, RBI requires banks to maintain a minimum LCR of 100%.
Q.127
Medium
A bank's Cost-to-Income Ratio is 45%. This indicates:
A
The bank is highly inefficient
B
The bank spends ₹45 to generate ₹100 in operating income
C
The bank's profitability is below industry standard
D
The bank must reduce its workforce
Correct Answer:
B. The bank spends ₹45 to generate ₹100 in operating income
Explanation:
Cost-to-Income Ratio = Operating Expenses/Operating Income. 45% means ₹45 spent to generate ₹100 in income, which is relatively good.
Q.128
Medium
Which banking regulation in India is NOT implemented under Basel III framework?
A
Capital Adequacy Ratio
B
Liquidity Coverage Ratio
C
Statutory Liquidity Ratio (SLR)
D
Net Stable Funding Ratio
Correct Answer:
C. Statutory Liquidity Ratio (SLR)
Explanation:
SLR is an RBI-specific regulation predating Basel III. Basel III includes CAR, LCR, and NSFR.
Q.129
Hard
A bank grants a ₹50 lakh personal loan at 9.5% p.a. for 7 years. If the borrower makes a part-payment of ₹10 lakhs after 2 years, how much principal remains? (Assume no prepayment penalty)
A
₹40 lakh
B
Less than ₹40 lakh
C
Exactly ₹40 lakh
D
Cannot be determined
Correct Answer:
B. Less than ₹40 lakh
Explanation:
After 2 years of EMI payments, the principal balance is reduced. A ₹10 lakh part-payment further reduces this, resulting in less than ₹40 lakh remaining.
Q.130
Easy
RBI's repo rate as per the latest 2024 monetary policy stance is approximately:
A
4.5%
B
5.5%
C
6.5%
D
7.5%
Explanation:
As of late 2024, RBI's repo rate is in the range of 6.25%-6.5% under the current monetary tightening cycle.
