Under the Payment and Settlement Systems Act, 2007, which institution is authorized to regulate payment systems in India?
Answer: B
The RBI has been vested with authority under the Payment and Settlement Systems Act, 2007, to regulate and supervise all payment and settlement systems in India.
Q.182Medium
Which digital payment system, launched by RBI and NPCI, is designed specifically for merchants?
Answer: B
BHIM (Bharat Interface for Money) is an RBI-NPCI initiative providing a simple, secure digital payment platform accessible to all, with merchant-specific QR code features for business transactions.
Q.183Medium
What is the primary objective of a 'Priority Sector Lending' mandate for banks?
Answer: B
Priority Sector Lending (PSL) ensures banks allocate a certain percentage of advances to underserved sectors including agriculture, SMEs, and low-income housing, promoting inclusive growth.
Q.184Medium
Which of the following is a characteristic of 'Cryptocurrency' that distinguishes it from fiat currency?
Answer: B
Cryptocurrencies use blockchain technology for decentralized, peer-to-peer transactions without central bank control. They operate on distributed ledger technology ensuring transparency and security.
Q.185Medium
As per the latest RBI regulations (2024), what is the minimum Capital to Risk-Weighted Assets Ratio (CRAR) requirement for Scheduled Commercial Banks?
Answer: B
RBI mandates a minimum CRAR of 10.5% for Scheduled Commercial Banks, which includes Common Equity Tier 1 (CET1), Additional Tier 1, and Tier 2 capital.
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Q.186Medium
Which bank has been designated as the Wholly-Owned Subsidiary (WOS) of Reserve Bank of India in 2024?
Answer: A
RBI Payments Private Limited operates as a wholly-owned subsidiary of the Reserve Bank of India, managing critical payment infrastructure.
Q.187Medium
Under the RBI's Inflation Targeting Framework, what is the target inflation range for consumer price inflation?
Answer: B
The RBI targets a Consumer Price Index (CPI) inflation of 4% with a tolerance band of +/- 2%, resulting in a 2-6% target range.
Q.188Medium
Which of the following best describes the 'Statutory Liquidity Ratio' (SLR) maintained by banks?
Answer: B
SLR requires banks to maintain a certain percentage of their net demand and time liabilities in the form of liquid assets like government securities.
Q.189Medium
Which regulatory framework ensures that banks maintain adequate capital buffers above minimum requirements?
Answer: B
Basel III introduced the Capital Conservation Buffer (2.5%) and Countercyclical Buffer to ensure banks maintain capital above minimum levels during good times.
Q.190Medium
The RBI's 'Insolvency Resolution and Debt Restructuring (IRDR) Framework' primarily focuses on which aspect?
Answer: B
The IRDR Framework provides a structured approach for banks to resolve stressed assets and restructure debts to promote financial stability.
Q.191Medium
Which of the following is a key feature of Unified Payments Interface (UPI) 2.0 launched in 2024?
Answer: A
UPI 2.0 introduced features like offline transaction capability and voice-enabled payments to enhance accessibility and user experience.
Q.192Medium
The RBI's 'Retail Direct Scheme' allows individual investors to directly purchase government securities. What is a key benefit of this scheme?
Answer: A
The Retail Direct Scheme enables individuals to open accounts with RBI and purchase government securities directly, reducing intermediation costs.
Q.193Medium
What is the minimum paid-up capital required for a Small Finance Bank to operate in India as per RBI guidelines (2024)?
Answer: B
RBI requires Small Finance Banks to maintain a minimum paid-up capital of Rs. 100 crore.
Q.194Medium
Under Basel III norms, what is the minimum Capital to Risk-Weighted Assets Ratio (CRAR) for banks?
Answer: C
Basel III requires banks to maintain a minimum CRAR of 10.5% (including capital conservation buffer).
Q.195Medium
Which of the following is NOT a type of Non-Performing Asset (NPA)?
Answer: D
Standard assets are performing assets. NPAs include substandard, doubtful, and loss assets.
Q.196Medium
Which financial year did India adopt the Goods and Services Tax (GST)?
Answer: C
GST was implemented in India from July 1, 2017 (2017-18 financial year).
Q.197Medium
What is the current reverse repo rate as per RBI's latest monetary policy (2024-2025)?
Answer: B
The reverse repo rate is typically 50 bps below the repo rate, set at 6.00% in 2024-2025.
Q.198Medium
Which Act regulates banking sector operations and customer protection in India?
Answer: A
The Banking Regulation Act, 1949 is the primary statute governing banks in India.
Q.199Medium
What is the primary function of the Financial Stability and Development Council (FSDC)?
Answer: B
FSDC coordinates among RBI, SEBI, IRDAI, and other regulators for financial stability.
Q.200Medium
If a bank's NPA ratio increased from 2.1% to 2.8% year-on-year, what does this indicate?
Answer: B
An increase in NPA (Non-Performing Assets) ratio indicates more loans are becoming non-productive, showing deterioration in asset quality.
