Government Jobs Exam Preparation — SSC, UPSC, Bank, Railway

Q.31 Hard General Awareness

Under the RBI's regulatory framework, what is the maximum loan amount that comes under Priority Sector Lending (PSL)?

A Rs. 5 lakh for agriculture, Rs. 10 lakh for micro-enterprises

B Rs. 10 lakh for agriculture, Rs. 1 crore for micro-enterprises

C Rs. 20 lakh for agriculture, Rs. 2 crore for micro-enterprises

D No maximum limit, it depends on bank discretion

Correct Answer: B. Rs. 10 lakh for agriculture, Rs. 1 crore for micro-enterprises

Explanation:

RBI guidelines specify Rs. 10 lakh limit for agriculture sector and Rs. 1 crore for micro-enterprises under Priority Sector Lending (as of 2024).

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Q.32 Medium General Awareness

What does CLR (Cash Reserve Ratio) mandate banks to maintain?

A A percentage of demand and time liabilities as cash reserves with RBI

B A percentage of deposits in government securities

C A percentage of capital in fixed deposits

D A percentage of profits as retained earnings

Correct Answer: A. A percentage of demand and time liabilities as cash reserves with RBI

Explanation:

CRR requires banks to maintain a certain percentage of their demand and time liabilities as cash reserves with the RBI, currently at 4.5% (as of 2024).

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Q.33 Hard General Awareness

Which of the following best describes 'Securitization' in banking?

A Converting illiquid assets into tradable securities backed by cash flows

B A method of encrypting bank data

C Insurance against operational risks

D A process of merging two banks

Correct Answer: A. Converting illiquid assets into tradable securities backed by cash flows

Explanation:

Securitization is the process of converting illiquid assets (like loans) into tradable securities that are backed by the underlying cash flows of those assets.

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Q.34 Easy General Awareness

What is the tenure for which RBI Governor is appointed?

A 3 years

B 5 years

C 4 years

D 6 years

Correct Answer: C. 4 years

Explanation:

The RBI Governor is appointed for a tenure of 4 years, after which reappointment is possible. The current Governor is Sanjay Malhotra (appointed December 2023).

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Q.35 Medium General Awareness

Which regulation requires banks to maintain a minimum Statutory Liquidity Ratio (SLR)?

A The Banking Regulation Act, 1949

B The Reserve Bank of India Act, 1934

C The Negotiable Instruments Act, 1881

D The Payment and Settlement Systems Act, 2007

Correct Answer: B. The Reserve Bank of India Act, 1934

Explanation:

Section 24 of the RBI Act, 1934 mandates that banks maintain a minimum SLR of not less than 18% of their net demand and time liabilities (NDTL).

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Q.36 Medium General Awareness

What is the concept of 'Repo' in banking and financial markets?

A A repossession of assets by banks

B A sale of securities with an agreement to repurchase at a fixed price and date

C A reporting requirement for NBFCs

D A replacement of loan officers

Correct Answer: B. A sale of securities with an agreement to repurchase at a fixed price and date

Explanation:

Repo (Repurchase Agreement) is a short-term borrowing mechanism where securities are sold with an agreement to repurchase them at a higher price on a specified date.

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Q.37 Hard General Awareness

Under Basel III, what is the minimum Common Equity Tier 1 (CET1) capital ratio required?

A 4.5%

B 6%

C 8%

D 10%

Correct Answer: A. 4.5%

Explanation:

Basel III requires a minimum CET1 capital ratio of 4.5%, with an additional capital conservation buffer of 2.5%, bringing the total to 7%.

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Q.38 Easy General Awareness

What is the primary objective of the Pradhan Mantri Mudra Yojana (PMMY)?

A To provide retail deposits to individuals

B To provide collateral-free loans to micro and small enterprises

C To regulate non-banking financial companies

D To encourage foreign direct investment

Correct Answer: B. To provide collateral-free loans to micro and small enterprises

Explanation:

PMMY aims to provide collateral-free loans to micro and small enterprises for business purposes, with loans up to Rs. 10 lakh under the scheme.

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Q.39 Easy General Awareness

As per the latest RBI guidelines (2024), what is the Statutory Liquidity Ratio (SLR) minimum requirement for Scheduled Commercial Banks?

A 16%

B 18%

C 20%

D 22%

Correct Answer: B. 18%

Explanation:

As of 2024, the SLR minimum requirement is 18% of the bank's Net Demand and Time Liabilities (NDTL).

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Q.40 Easy General Awareness

Which government scheme aims to provide social security coverage to unorganized workers?

A Pradhan Mantri Jeevan Jyoti Bima Yojana

B Pradhan Mantri Suraksha Bima Yojana

C Pradhan Mantri Rashtriya Swasthya Suraksha Mission

D Atal Pension Yojana

Correct Answer: A. Pradhan Mantri Jeevan Jyoti Bima Yojana

Explanation:

PMJJBY provides life insurance coverage to unorganized workers at minimal premium, protecting their families.

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