A bank offers a home loan at 7.5% p.a. for 20 years. If you borrow ₹25 lakhs, what is your approximate monthly EMI?
Answer: B
Using EMI formula: EMI = P[r(1+r)^n]/[(1+r)^n-1], where P=25,00,000, r=7.5%/12=0.00625, n=240. EMI ≈ ₹19,420.
Q.63Medium
Under RBI's Priority Sector Lending (PSL) norms, what is the minimum percentage of advances that scheduled commercial banks must lend to priority sector?
Answer: C
RBI mandates 40% of net bank credit to be allocated to Priority Sector Lending for scheduled commercial banks.
Q.64Medium
If a bank's Return on Assets (ROA) is 1.2% and Total Assets are ₹8 lakh crore, what is the bank's Net Profit?
Answer: C
Net Profit = ROA × Total Assets = 1.2% × ₹8,00,000 crore = ₹9,600 crore.
Q.65Medium
RBI's Liquidity Coverage Ratio (LCR) requirement for banks is minimum how much as of 2024?
Answer: C
As per Basel III implementation in India, RBI requires banks to maintain a minimum LCR of 100%.
Advertisement
Q.66Medium
A bank's Cost-to-Income Ratio is 45%. This indicates:
Answer: B
Cost-to-Income Ratio = Operating Expenses/Operating Income. 45% means ₹45 spent to generate ₹100 in income, which is relatively good.
Q.67Medium
Which banking regulation in India is NOT implemented under Basel III framework?
Answer: C
SLR is an RBI-specific regulation predating Basel III. Basel III includes CAR, LCR, and NSFR.
Q.68Medium
A bank's deposits grew from ₹3,00,000 crore to ₹3,54,000 crore in one year. What is the YoY growth rate?
A bank's Provision Coverage Ratio (PCR) improved from 62% to 71% YoY. This indicates:
Answer: B
Higher PCR indicates better provision coverage against stressed assets, reflecting stronger risk management and improving asset quality.
Q.70Medium
Under RBI's Know Your Customer (KYC) norms, what is the minimum frequency for KYC updation?
Answer: C
RBI mandates KYC updation every 10 years for regular customers, though higher-risk categories may require more frequent updates.
Q.71Medium
Under Basel III norms, what is the minimum Common Equity Tier 1 (CET1) capital ratio for banks in India as per RBI guidelines 2024?
Answer: B
RBI mandates a minimum CET1 capital ratio of 6.5% for Indian banks under Basel III framework to ensure financial stability.
Q.72Medium
RBI's Current Account and Savings Account (CASA) ratio benchmark for banks is typically aimed at achieving what percentage?
Answer: B
A healthy CASA ratio of 35-40% indicates banks have a stable, low-cost deposit base, which improves net interest margins.
Q.73Medium
Which of the following is NOT covered under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
Answer: D
PMJJBY provides only death cover (natural and accidental), not critical illness coverage. For critical illness, Ayushman Bharat is a separate scheme.
Q.74Medium
A bank's Return on Assets (ROA) improved from 0.8% to 1.1% while Return on Equity (ROE) remained at 12%. What can be inferred?
Answer: A
Improved ROA indicates better profitability relative to total assets. Stable ROE with improved ROA suggests maintained leverage with better operational efficiency.
Q.75Medium
Which RBI circular (2024) introduced the Liquidity Coverage Ratio (LCR) requirement for Scheduled Commercial Banks?
Answer: C
LCR was introduced under Basel III to ensure banks maintain adequate high-quality liquid assets to survive acute stress scenarios.
Q.76Medium
A customer avails a ₹25 lakh home loan at 7.2% p.a. for 20 years (EMI basis). Approximately what will be the total interest paid?
Answer: C
Using home loan EMI formula, total interest for ₹25 lakh at 7.2% over 240 months ≈ ₹13,50,000 (approximate calculation based on standard amortization).
Q.77Medium
Under RBI's Structured Data Standards (SDS), which banking data must all scheduled banks submit digitally by 2025?
Answer: C
SDS mandates standardized submission of regulatory and prudential returns in structured digital format for better data quality and analysis.
Q.78Medium
A bank's Loan-to-Deposit (LTD) ratio increased from 78% to 85%. Which statement is MOST accurate?
Answer: B
Higher LTD ratio (85%) means more advances relative to deposits, increasing credit exposure and potential liquidity risk, though showing aggressive lending strategy.
Q.79Medium
Which regulatory measure is RBI NOT directly responsible for in Indian banking supervision?
Answer: B
IRDAI (Insurance Regulatory and Development Authority), not RBI, regulates insurance companies. RBI handles banking regulation and monetary policy.
Q.80Medium
A bank's Return on Assets (ROA) improved from 0.8% to 1.1% year-on-year. What is the percentage point improvement?
Answer: C
The improvement is 0.3 percentage points (1.1% - 0.8%). In relative terms, this represents a 37.5% increase (0.03.8 × 100).
