What is the primary objective of the Insolvency and Bankruptcy Code, 2016?
Answer: B
IBC aims to provide a unified mechanism to resolve corporate insolvency through a time-bound process of 180 days (extendable to 270 days).
Q.22Medium
Under the 2024 RBI guidelines, what is the minimum Capital Adequacy Ratio (CAR) required for Scheduled Commercial Banks?
Answer: B
RBI mandates a minimum CAR of 10.5% for SCBs (including Tier-1 and Tier-2 capital), exceeding Basel III minimum of 8%.
Q.23Medium
Which international financial organization publishes the Basel Accords that guide banking regulations?
Answer: C
BCBS, established in 1974, develops banking regulations and prudential standards, publishing Basel I, II, and III accords.
Q.24Medium
What is the purpose of the Marginal Standing Facility (MSF) introduced by RBI?
Answer: A
MSF allows scheduled banks to borrow funds overnight from RBI at a penal rate against eligible securities when other liquidity sources are exhausted.
Q.25Medium
Under which facility can banks borrow money from RBI on a temporary basis to manage short-term liquidity mismatches?
Answer: C
LAF allows banks to borrow through Repo (overnight) or Reverse Repo to manage short-term liquidity needs.
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Q.26Medium
Which of the following is a regulatory tool used by RBI to control inflation and manage money supply?
Answer: B
OMO involves buying and selling government securities to regulate liquidity and money supply in the banking system.
Q.27Medium
What does CASA ratio indicate in banking?
Answer: B
CASA (Current Account Saving Account) ratio measures the proportion of low-cost deposits, indicating deposit quality and profitability.
Q.28Medium
As per RBI's 2024 guidelines, what is the maximum Loan-to-Value (LTV) ratio for housing loans?
Answer: B
RBI guidelines specify 80% as the maximum LTV ratio for housing loans to manage systemic risk.
Q.29Medium
Under which Act is the Payment and Settlement Systems regulated in India?
Answer: B
The Payment and Settlement Systems Act, 2007 provides the legal framework for regulating payment systems in India.
Q.30Medium
Which committee was set up to review the monetary policy framework in India?
Answer: A
The Urjit Patel Committee (2014) reviewed the monetary policy framework and recommended an inflation-targeting approach.
Q.31Medium
What is the current Statutory Liquidity Ratio (SLR) as per RBI's latest directive?
Answer: B
As of 2024, the SLR is set at 19.5% of Net Demand and Time Liabilities (NDTL).
Q.32Medium
Which of the following is an example of a non-bank financial institution (NBFI)?
Answer: B
Housing Finance Companies are regulated NBFIs that provide financing for housing but are not classified as banks.
Q.33Medium
What is the primary objective of the Digital Payment Index (DPI) launched by RBI?
Answer: B
The Digital Payment Index measures and monitors the progress of digital payments in the country across various segments.
Q.34Medium
Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the overdraft limit allowed?
Answer: B
PMJDY accounts are eligible for an overdraft facility up to ₹10,000 after maintaining the account properly.
Q.35Medium
What is the role of the Insolvency and Bankruptcy Board of India (IBBI)?
Answer: B
IBBI, established under the Insolvency and Bankruptcy Code 2016, regulates insolvency professionals and the resolution process.
Q.36Medium
Under Know Your Customer (KYC) norms, what is the validity period for re-KYC for high-risk customers?
Answer: A
As per RBI's 2024 KYC guidelines, high-risk customers require re-KYC verification every 2 years.
Q.37Medium
What is the current base rate structure replaced with?
Answer: A
RBI replaced the Base Rate system with MCLR in 2016 to make lending rates more transparent and responsive to policy changes.
Q.38Medium
What is the maximum limit of deposits insured under DICGC?
Answer: B
The Deposit Insurance and Credit Guarantee Corporation (DICGC) provides deposit insurance coverage of up to ₹5 lakh per depositor per bank, increased from ₹1 lakh in 2020.
Q.39Medium
Which committee is responsible for reviewing the regulatory framework for banks in India?
Answer: C
The Basel Committee on Banking Supervision sets international standards for bank capital adequacy. Basel III norms have been implemented in India by RBI for regulatory framework.
Q.40Medium
What is the primary role of the Monetary Policy Committee (MPC)?
Answer: B
The Monetary Policy Committee, headed by the RBI Governor, is responsible for fixing the Repo Rate and conducting monetary policy to achieve inflation control and growth.
