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Q.81Medium General Awareness
What does the term 'Statutory Liquidity Ratio (SLR)' refer to?
AThe ratio of deposits to advances
BThe minimum percentage of deposits banks must invest in government securities
CThe ratio of capital to risk-weighted assets
DThe percentage of deposits available for lending
Correct Answer:
B. The minimum percentage of deposits banks must invest in government securities
Explanation:
SLR is the minimum percentage of deposits that commercial banks are required to maintain in the form of government securities and other approved securities with RBI.
Under the Pradhan Mantri Mudra Yojana (PMMY), who are the target beneficiaries?
ALarge manufacturing units
BNon-corporate small businesses and startups
COnly women entrepreneurs
DAgricultural enterprises only
Correct Answer:
B. Non-corporate small businesses and startups
Explanation:
PMMY targets non-corporate and non-farm small/micro businesses for collateral-free loans. It includes Shishu, Kishor, and Tarun loan schemes up to ₹10 lakh.
Which of the following is a characteristic of Tier-2 capital for banks?
AFully paid-up equity shares
BRetained earnings and subordinated debt
CRBI approved securities only
DGovernment bonds exclusively
Correct Answer:
B. Retained earnings and subordinated debt
Explanation:
Tier-2 capital includes subordinated debt, revaluation reserves, and general loan loss provisions. It supplements Tier-1 capital for meeting capital requirements.
What is the objective of the Pradhan Mantri Fasal Bima Yojana (PMFBY)?
ATo provide health insurance to farmers
BTo provide crop insurance coverage against crop failure
CTo subsidize fertilizer costs
DTo provide agricultural loans at zero interest
Correct Answer:
B. To provide crop insurance coverage against crop failure
Explanation:
PMFBY provides comprehensive crop insurance coverage to farmers against crop failure due to natural calamities, pests, and diseases at affordable premiums.
Which international standard governs anti-money laundering and counter-terrorist financing?
AISO 9001
BFATF (Financial Action Task Force) guidelines
CBasel II Accord
DDodd-Frank Act
Correct Answer:
B. FATF (Financial Action Task Force) guidelines
Explanation:
The Financial Action Task Force (FATF) establishes international standards for combating money laundering and terrorist financing. India complies with FATF recommendations.
Under Basel III norms, what is the minimum Common Equity Tier-1 (CET-1) ratio requirement for banks?
A4.5%
B5.5%
C6.5%
D8%
Correct Answer:
A. 4.5%
Explanation:
Basel III prescribes a minimum CET-1 ratio of 4.5% of risk-weighted assets. India has implemented Basel III norms with additional conservation buffers.
ASystem for Worldwide International Financial Transactions
BSociety for Worldwide Interbank Financial Telecommunication
CSoftware for World Integrated Financial Trading
DSecure Web Interface for Financial Transactions
Correct Answer:
B. Society for Worldwide Interbank Financial Telecommunication
Explanation:
SWIFT is the Society for Worldwide Interbank Financial Telecommunication, a secure international messaging system used for cross-border fund transfers.
Which of the following is NOT covered under the definition of a 'Non-Banking Financial Company' (NBFC)?
AFinance companies
BMerchant banks
CCommercial banks
DInvestment companies
Correct Answer:
C. Commercial banks
Explanation:
Commercial banks are not NBFCs. NBFCs are financial institutions that provide lending and other financial services but cannot accept deposits from the general public.
