What is the current statutory liquidity ratio (SLR) requirement set by RBI for banks?

The correct answer is B: 18%. As per RBI guidelines, banks must maintain a minimum SLR of 18% of their net demand and time liabilities.

A bank's Provision Coverage Ratio (PCR) improved from 62% to 71% YoY. This indicates:

The correct answer is B: Improving asset quality and risk management. Higher PCR indicates better provision coverage against stressed assets, reflecting stronger risk management and improving asset quality.

Bank Q's Cost-to-Income Ratio (CIR) is 42%. What does this indicate about its operational efficiency?

The correct answer is A: The bank spends ₹42 to generate ₹100 of income, indicating good efficiency. A CIR of 42% (lower is better) indicates the bank spends ₹42 to earn ₹100, which is considered efficient. Industry average for Indian banks is around 40-45%.

If Bank C's Earnings Per Share (EPS) is ₹45 and its stock price is ₹900, what is the Price-to-Earnings (P/E) ratio?

The correct answer is B: 20. P/E Ratio = Stock Price / EPS = 900 / 45 = 20

Which regulatory framework governs cross-border rupee transactions in India?

The correct answer is C: Foreign Exchange Management Act (FEMA) and RBI guidelines. Cross-border rupee transactions are regulated under FEMA and specific RBI guidelines for internationalization of rupee.

Home

Home › Subjects › Bank PO / Clerk / RBI › Banking Awareness

Bank PO / Clerk / RBI
Banking Awareness

PO, Clerk, RRB — Quantitative, Reasoning, GK

18 Q 3 Topics Take Mock Test

Difficulty: All Easy Medium Hard 1–10 of 18

Topics in Bank PO / Clerk / RBI

All General Awareness 200 Banking Awareness 18 Data Interpretation 100

Q.1 Medium Banking Awareness

What is the primary function of the Financial Stability and Development Council (FSDC)?

A To regulate insurance companies

B To coordinate among financial sector regulators

C To approve bank mergers

D To set interest rates

Correct Answer: B. To coordinate among financial sector regulators

EXPLANATION

FSDC coordinates among RBI, SEBI, IRDAI, and other regulators for financial stability.

Test

Q.2 Hard Banking Awareness

Which of the following IS a characteristic of a Scheduled Bank as per RBI definitions?

A Operations limited to urban areas only

B Minimum paid-up capital and reserves of Rs. 5 lakh

C Maximum loan limit of Rs. 100 crore

D Can only accept deposits from government

Correct Answer: B. Minimum paid-up capital and reserves of Rs. 5 lakh

EXPLANATION

A Scheduled Bank must have minimum paid-up capital and reserves of Rs. 5 lakh as per RBI definitions.

Test

Q.3 Hard Banking Awareness

What is the implementation timeline for the Indian Banks' Association (IBA) model on stress testing for credit risk?

A Quarterly basis

B Semi-annually

C Annually

D Bi-annually with quarterly reviews

Correct Answer: A. Quarterly basis

EXPLANATION

Banks conduct stress tests on a quarterly basis as per RBI guidelines and IBA framework.

Test

Q.4 Hard Banking Awareness

Under Unified Payments Interface (UPI) 2.0, what is the new feature introduced for offline transactions?

A Cross-border payments

B Offline transaction capability up to Rs. 200

C Real-time gross settlement

D Cryptocurrency integration

Correct Answer: B. Offline transaction capability up to Rs. 200

EXPLANATION

UPI 2.0 introduced offline transaction capability allowing payments without internet connectivity.

Test

Q.5 Hard Banking Awareness

Which of the following factors is NOT considered while calculating the Credit Risk Weight of an asset under Basel III?

A Nature of borrower

B Maturity of loan

C Collateral held

D Branch location of bank

Correct Answer: D. Branch location of bank

EXPLANATION

Branch location is not a factor in risk weighting. Nature of borrower, maturity, and collateral are key factors.

Test

Q.6 Hard Banking Awareness

What is the statutory Liquidity Ratio (SLR) requirement for banks as per RBI guidelines (2024)?

A 19%

B 20%

C 21%

D 22%

Correct Answer: B. 20%

EXPLANATION

RBI maintains the SLR requirement at 18% with recent adjustments around 20% for specific instruments.

Test

Q.7 Hard Banking Awareness

Under the Priority Sector Lending norms, what percentage of advances must be directed to agriculture by commercial banks?

A 15%

B 18%

C 20%

D 25%

Correct Answer: B. 18%

EXPLANATION

RBI mandates that commercial banks allocate at least 18% of total advances to agriculture.

Test

Q.8 Medium Banking Awareness

Which Act regulates banking sector operations and customer protection in India?

A Banking Regulation Act, 1949

B Securities Act, 1956

C Insurance Act, 1938

D Competition Act, 2002

Correct Answer: A. Banking Regulation Act, 1949

EXPLANATION

The Banking Regulation Act, 1949 is the primary statute governing banks in India.

Test

Q.9 Medium Banking Awareness

What is the current reverse repo rate as per RBI's latest monetary policy (2024-2025)?

A 5.75%

B 6.00%

C 6.25%

D 6.50%

Correct Answer: B. 6.00%

EXPLANATION

The reverse repo rate is typically 50 bps below the repo rate, set at 6.00% in 2024-2025.

Test

Q.10 Medium Banking Awareness

Which financial year did India adopt the Goods and Services Tax (GST)?

A 2015-16

B 2016-17

C 2017-18

D 2018-19

Correct Answer: C. 2017-18

EXPLANATION

GST was implemented in India from July 1, 2017 (2017-18 financial year).

Test

1 2

All Subjects & Topics

Govt. Exams

Entrance Exams

Teacher Exams

Subjects

Quick Links

Bank PO / Clerk / RBI Banking Awareness

Bank PO / Clerk / RBI
Banking Awareness