Bank exams reward accuracy under time pressure more than depth, and prelims is often decided by a few marks in a twenty minute section. Questions here follow the IBPS PO, IBPS Clerk, SBI PO, SBI Clerk and RBI Grade B pattern across quantitative aptitude, reasoning ability, English language, general and banking awareness, and computer aptitude. Data interpretation sets are included in full rather than as single questions, since that is how they appear in the paper.
Under RBI's Know Your Customer (KYC) norms 2024, what is the maximum cash deposit limit for new accounts without enhanced documentation?
Answer: A
RBI's KYC guidelines restrict cash deposits to ₹1 lakh per month for new accounts in the first 6 months without enhanced documentation, to curb money laundering and terror financing.
Q.242Medium
Analyze the scenario: Bank I has ₹50,000 crores in total advances with sector-wise distribution - Agriculture 12%, MSME 18%, Services 35%, Manufacturing 25%, Others 10%. If the bank needs to increase agriculture lending by 5% of total advances, what is the required additional disbursement?
Answer: A
Current agriculture advances = 12% of ₹50,000 = ₹6,000 cr. Required increase of 5% of total = 5% of ₹50,000 = ₹2,500 crores additional disbursement needed.
Q.243Medium
Bank K's Consumer Advances grew from ₹12,000 crores to ₹14,800 crores while maintaining the same default rate of 1.2%. What was the increase in absolute NPA amount?
Answer: A
Original NPA = 1.2% of ₹12,000 = ₹144 cr. New NPA = 1.2% of ₹14,800 = ₹177.6 cr. Increase in NPA = ₹177.6 - ₹144 = ₹33.6 crores.
Q.244Medium
Bank X's Loan-to-Deposit (LTD) ratio stood at 78% as of March 2024. If the bank's total deposits increased by ₹5,000 crores in Q1 FY2025 while maintaining the same LTD ratio, by how much would the advances increase?
Answer: A
With LTD ratio of 78%, advances are 78% of deposits. If deposits increase by ₹5,000 crores, advances increase by 78% of ₹5,000 = ₹3,900 crores. This tests understanding of key banking ratios and their application in data interpretation.
Q.245Medium
Which of the following best describes the 'Prompt Corrective Action' (PCA) framework used by the Reserve Bank of India?
Answer: B
The Prompt Corrective Action (PCA) framework is an RBI supervisory tool that kicks in when a bank breaches defined risk thresholds — primarily related to Capital Adequacy Ratio (CAR), Net NPA ratio, and Return on Assets (RoA)/leverage. Once a bank is placed under PCA, RBI imposes restrictions such as curbs on dividend distribution, branch expansion, and fresh lending to prevent further deterioration. It is a preventive, not emergency, mechanism and does not involve RBI appointing directors or controlling inflation directly.
Q.246Medium
As per RBI guidelines, which of the following accounts is classified as a 'Non-Performing Asset' (NPA)?
Answer: B
As per RBI's prudential norms, a term loan is classified as a Non-Performing Asset (NPA) when interest and/or principal installment remains overdue for a period of more than 90 days. This is the standard threshold for most loan categories. For agricultural loans, different crop-season-based norms apply. The 90-day norm was introduced by RBI in line with international best practices to align Indian banking standards with global norms.
Q.247Medium
The term 'Open Market Operations' (OMO) conducted by the Reserve Bank of India primarily aims to:
Answer: B
Open Market Operations (OMO) refer to the purchase and sale of government securities (G-Secs) by the Reserve Bank of India in the open market to regulate liquidity. When RBI buys securities, it injects liquidity into the system; when it sells securities, it absorbs liquidity. OMOs are a key tool of monetary policy used alongside repo rate and Cash Reserve Ratio (CRR) adjustments. They do not involve foreign exchange transactions, direct lending to banks, or refinancing of NBFCs.
Q.248Medium
Under the Insolvency and Bankruptcy Code (IBC) 2016, what is the maximum time limit for completion of the Corporate Insolvency Resolution Process (CIRP), including any extensions?
Answer: B
Under the Insolvency and Bankruptcy Code (IBC) 2016, the Corporate Insolvency Resolution Process (CIRP) must be completed within 180 days from the date of admission of the application. This period can be extended by up to 90 days by the National Company Law Tribunal (NCLT) on application, making the total maximum period 270 days. However, the IBC was amended in 2019 to set an overall mandatory outer limit of 330 days (including any litigation period), within which the CIRP must mandatorily be completed. Hence 330 days is the correct answer.
Q.249Medium
Which of the following is the correct definition of 'Marginal Standing Facility' (MSF) offered by the Reserve Bank of India?
Answer: A
The Marginal Standing Facility (MSF) is a window introduced by RBI in 2011 under which scheduled commercial banks can borrow overnight funds from RBI by dipping into their Statutory Liquidity Ratio (SLR) holdings, up to a certain limit. The MSF rate is typically 25 basis points above the repo rate, making it a penal rate for emergency overnight borrowing. It forms the upper band of the interest rate corridor in RBI's Liquidity Adjustment Facility (LAF) framework. It is not a subsidised or medium-term facility.
Q.250Medium
The Financial Resolution and Deposit Insurance (FRDI) Bill, proposed in India, primarily deals with:
Answer: B
The Financial Resolution and Deposit Insurance (FRDI) Bill was proposed to create a comprehensive resolution framework for financial service providers (banks, insurance companies, etc.) facing stress or failure. It also aimed to revise and strengthen the deposit insurance mechanism in India, which is currently handled by the Deposit Insurance and Credit Guarantee Corporation (DICGC). The Bill proposed setting up a Resolution Corporation. It was withdrawn in 2018 due to concerns about the 'bail-in' clause but remains an important topic for bank exams.
Q.251Medium
Which of the following correctly describes the 'Priority Sector Lending' (PSL) target for domestic scheduled commercial banks in India, as mandated by the RBI?
Answer: A
As per RBI's Master Direction on Priority Sector Lending, domestic scheduled commercial banks and foreign banks with 20 or more branches are required to lend 40% of their Adjusted Net Bank Credit (ANBC) or the Credit Equivalent Amount of Off-Balance Sheet Exposures (CEOBE), whichever is higher, to the priority sector. This includes sub-targets for agriculture (18%), weaker sections (12%), and micro enterprises. The base is ANBC or CEOBE — not total deposits or total advances.
Q.252Medium
The 'SARFAESI Act, 2002' primarily empowers which of the following entities?
Answer: B
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 empowers banks and other secured creditors to enforce their security interest (such as mortgaged property) without approaching a court, for recovery of dues. Under this Act, secured creditors can take possession of collateral, sell assets, manage the business of the defaulter, or assign the debt to an Asset Reconstruction Company (ARC). It is a key recovery mechanism alongside the Debt Recovery Tribunals (DRTs) and IBC.
Q.253Medium
In the context of Indian banking, what does the term 'Teaser Rate' on home loans refer to?
Answer: B
A 'Teaser Rate' on home loans refers to a concessional or artificially low interest rate offered by banks for an initial fixed period (typically 1 to 3 years) to attract borrowers. After this introductory period, the interest rate reverts to the standard or higher floating rate applicable on the loan. The RBI has raised concerns about teaser rate home loans as they can create repayment stress for borrowers when the rate resets upward, potentially increasing NPA risk. RBI has asked banks to set aside higher provisioning for such loans.
Q.254Medium
Which of the following statements about the Deposit Insurance and Credit Guarantee Corporation (DICGC) is correct as per the latest guidelines applicable in 2024?
Answer: B
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of RBI, provides deposit insurance cover of up to ₹5 lakh per depositor per bank. This limit was revised from ₹1 lakh to ₹5 lakh in February 2020 following the amendment to the DICGC Act. The insurance cover applies to all types of deposits — savings, fixed, current, and recurring — held in the same capacity and same right. Interbank deposits, deposits of foreign governments, and deposits of state/central governments are excluded. DICGC is funded by premiums paid by insured banks, not by the government.
Q.255Medium
Which of the following is the correct full form of 'BIOS' in the context of computer systems?
Answer: B
Understanding:
We need to identify the correct expansion of the acronym BIOS as used in computer hardware.
Step 1: Recall the term
BIOS is firmware embedded on a chip on the computer's motherboard. It is the first software that runs when a computer is powered on, responsible for initialising hardware components and loading the operating system.
Step 2: Identify each word
B – Basic, I – Input, O – Output, S – System. It is called 'Basic' because it provides the most fundamental level of interface between the hardware and the software/OS.
Answer:
The correct full form of BIOS is Basic Input Output System.
Basic Input Output System
Quick Tip:
BIOS is being gradually replaced by UEFI (Unified Extensible Firmware Interface) in modern computers, but both serve the same fundamental purpose of booting the system.
Q.256Medium
In computer networking, what does the abbreviation 'DNS' stand for?
Answer: C
Understanding:
We need to identify the correct full form of the networking term DNS.
Step 1: Role of DNS
DNS acts like a phonebook for the internet. It translates human-readable domain names (such as www.rbi.org.in) into numerical IP addresses that computers use to identify each other on the network.
Step 2: Expand the acronym
D – Domain, N – Name, S – System. Every time you type a website address into a browser, a DNS query is made to resolve that name into the correct IP address.
Answer:
The correct full form of DNS is Domain Name System.
Domain Name System
Quick Tip:
DNS operates primarily on UDP port 53. Remembering its function as the 'internet's phonebook' is a useful analogy for exam answers.
Q.257Medium
Which of the following storage devices has the fastest data access speed?
Answer: D
Understanding:
We need to compare the data access speeds of the given storage devices and identify the fastest.
Step 1: Compare storage technologies
Magnetic Tape uses sequential access and is the slowest, used mainly for backups. Optical Discs (DVDs) read data using laser beams and are slower than HDDs. HDDs use spinning magnetic platters and mechanical read/write heads, limiting their speed due to physical movement. SSDs use NAND flash memory with no moving parts, enabling near-instant electronic access.
Step 2: Rank by access speed
SSD > HDD > Optical Disc > Magnetic Tape. SSDs typically achieve read/write speeds of 500 MB/s (SATA) to over 7,000 MB/s (NVMe), far exceeding HDDs which average 80–160 MB/s.
Answer:
Among the given options, the Solid State Drive (SSD) has the fastest data access speed.
Solid State Drive (SSD)
Quick Tip:
NVMe SSDs connected via PCIe lanes are significantly faster than SATA SSDs. The absence of moving mechanical parts is the core reason for SSD speed superiority.
Q.258Medium
Which layer of the OSI model is responsible for end-to-end communication and error recovery between two hosts?
Answer: B
Understanding:
We need to identify which OSI layer handles end-to-end data delivery with error recovery.
Step 1: Recall the OSI model layers
The 7 OSI layers (bottom to top) are: Physical, Data Link, Network, Transport, Session, Presentation, Application.
Step 2: Identify the function of each relevant layer
Data Link Layer (Layer 2): handles node-to-node delivery within the same network segment. Network Layer (Layer 3): handles logical addressing and routing across networks. Session Layer (Layer 5): manages sessions/connections between applications. Transport Layer (Layer 4): provides end-to-end communication, segmentation, flow control, and error recovery using protocols like TCP and UDP.
Step 3: Match the requirement
End-to-end communication with error recovery is precisely the responsibility of the Transport Layer. TCP (Transmission Control Protocol) at this layer ensures reliable delivery through acknowledgements and retransmission.
Answer:
The Transport Layer of the OSI model is responsible for end-to-end communication and error recovery.
Transport Layer
Quick Tip:
Remember: Data Link Layer = node-to-node (same network); Network Layer = host-to-host (routing); Transport Layer = end-to-end (reliable delivery). This distinction is a frequent exam trap.
Q.259Medium
In MS Excel, which of the following functions is used to find the position of a value within a range of cells?
Answer: C
Understanding:
We need to identify the MS Excel function that returns the relative position (row or column number) of a specific value within a given range.
Step 1: Analyse each option
FIND(): returns the starting position of a text string within another text string — it works on text, not cell ranges. SEARCH(): similar to FIND() but case-insensitive; also used for text strings, not ranges. LOOKUP(): retrieves a value from a row or column — it returns the value, not the position. MATCH(): searches for a specified item in a range and returns the relative position of that item within the range.
Step 2: Confirm MATCH() syntax
The syntax is =MATCH(lookup_value, lookup_array, match_type). For example, =MATCH(500, A1:A10, 0) returns the position of 500 in the range A1:A10. MATCH() is commonly combined with INDEX() for powerful lookups.
Answer:
The MATCH() function is used in MS Excel to find the position of a value within a range of cells.
MATCH()
Quick Tip:
The INDEX-MATCH combination is often preferred over VLOOKUP because MATCH can search both rows and columns, and the lookup column does not need to be the leftmost column.
Q.260Medium
Which of the following protocols is used to securely transfer files over a network using encryption?
Answer: B
Understanding:
We need to identify the protocol designed for secure, encrypted file transfer over a network.
Step 1: Evaluate each option
FTP (File Transfer Protocol): transfers files but sends data in plaintext — no encryption, hence insecure. SMTP (Simple Mail Transfer Protocol): used for sending emails, not for file transfers. HTTP (HyperText Transfer Protocol): used for transmitting web pages; basic HTTP is unencrypted. SFTP (SSH File Transfer Protocol): provides file transfer capability over a secure SSH (Secure Shell) connection, encrypting both commands and data.
Step 2: Confirm SFTP characteristics
SFTP operates on port 22 (same as SSH). It provides authentication and full encryption, making it the standard secure alternative to FTP in banking and government IT environments.
Answer:
SFTP (SSH File Transfer Protocol) is used to securely transfer files over a network using encryption.
SFTP (SSH File Transfer Protocol)
Quick Tip:
Do not confuse SFTP with FTPS. FTPS is FTP with SSL/TLS added on top, while SFTP is an entirely different protocol built on SSH. Both are secure but operate differently.
