Which of the following is a negotiable instrument used in banking?
Answer: B
A Promissory Note is a negotiable instrument that represents a written promise to pay a specified sum to a creditor.
Q.42Easy
What does KYC stand for in banking terminology?
Answer: A
KYC (Know Your Client) is a mandatory compliance process to verify customer identity and assess their financial profile.
Q.43Easy
Which scheme provides crop insurance coverage to farmers in India?
Answer: A
Pradhan Mantri Fasal Bima Yojana (PMFBY) provides crop insurance protection to farmers against crop failure due to natural calamities.
Q.44Easy
What is the full form of NPA in banking context?
Answer: A
NPA (Non-Performing Asset) refers to a loan or advance where interest and principal payments are overdue for 90 days or more.
Q.45Easy
What does CIBIL score measure in the Indian banking system?
Answer: A
CIBIL (Credit Information Bureau India Limited) score measures individual and corporate creditworthiness based on credit history.
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Q.46Easy
Which regulatory body oversees the functioning of Non-Banking Financial Companies (NBFCs) in India?
Answer: B
The Reserve Bank of India (RBI) is responsible for regulating and supervising NBFCs. SEBI oversees capital markets, IRDA handles insurance, and PFRDA manages pension funds.
Q.47Easy
What is the primary purpose of Know Your Customer (KYC) norms in banking?
Answer: B
KYC norms are essential anti-money laundering (AML) measures that require banks to verify customer identity and monitor transactions to prevent financial crimes and terrorism financing.
Q.48Easy
Which of the following is a core function of the Deposit Insurance and Credit Guarantee Corporation (DICGC)?
Answer: B
DICGC protects depositors by insuring their bank deposits up to Rs. 5 lakh per depositor per bank. This encourages public confidence in the banking system.
Q.49Easy
Which of the following is NOT a component of Broad Money (M3) in India?
Answer: D
M3 includes currency, demand deposits, and time deposits with banks. Cryptocurrencies are not included in the official money supply measurement by RBI.
Q.50Easy
The RBI's Repo Rate as of 2024-2025 is maintained at which level by the Monetary Policy Committee?
Answer: D
As per the latest RBI Monetary Policy (2024), the Repo Rate has been maintained at 6.5% with a focus on managing inflation while supporting growth.
Q.51Easy
Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the maximum life insurance cover provided to account holders?
Answer: C
PMJDY provides accidental death insurance cover of Rs. 2 lakhs (Rs. 200,000) to all beneficiaries who open accounts under the scheme.
Q.52Easy
What is the primary objective of the Basel Accords framework adopted by Indian banks?
Answer: B
Basel Accords (I, II, III) aim to strengthen the regulation, supervision, and risk management of banks to ensure financial stability.
Q.53Easy
What is the current CRR (Cash Reserve Ratio) maintained by Scheduled Commercial Banks with RBI (2024-2025)?
Answer: C
The Cash Reserve Ratio is maintained at 4.5% of Net Demand and Time Liabilities (NDTL) as per RBI's current monetary policy stance.
