In data interpretation for banking exams, if a bank's Net Interest Income (NII) increases by 15% but Net Profit decreases by 5%, what could be the likely reason?
Answer: B
If NII increases but Net Profit decreases, it indicates higher provisions/contingencies or elevated operating expenses offsetting income gains.
Q.62Medium
Which term refers to the difference between the Repo Rate and the Reverse Repo Rate set by RBI?
Answer: A
The corridor refers to the band between Repo Rate (upper ceiling) and Reverse Repo Rate (lower floor) for overnight lending.
Q.63Medium
As per recent RBI guidelines (2024), what is the threshold loan amount for priority sector lending to agriculture?
Answer: A
RBI prescribes priority sector lending to agriculture with a loan limit of ₹50 lakhs for individual farmers.
Q.64Medium
Which of the following is a characteristic of a Certificate of Deposit (CD)?
Answer: B
CDs are negotiable instruments issued by banks at a discount, sold in the money market, with fixed maturity periods.
Q.65Medium
What does CASA ratio signify in banking?
Answer: A
CASA ratio reflects the proportion of Current Accounts to Savings Accounts, indicating low-cost deposit base quality.
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Q.66Medium
What is the mandated percentage of credit disbursement for Micro and Small Enterprises (MSE) under priority sector lending?
Answer: C
RBI mandates that at least 12% of total priority sector lending should go to Micro and Small Enterprises.
Q.67Medium
A bank's Loan-to-Deposit (LTD) ratio is 95%. What does this indicate?
Answer: B
An LTD ratio of 95% indicates the bank is lending aggressively relative to deposits, which may strain liquidity.
Q.68Medium
Which bank is the oldest bank in continuous operation in India?
Answer: D
Allahabad Bank, established in 1865, is the oldest bank in continuous operation in India and was the first bank founded by Indians.
Q.69Medium
As per RBI's latest norms (2024), what is the minimum capital adequacy ratio (CAR) for scheduled commercial banks?
Answer: C
RBI prescribes a minimum CAR of 10.5% for scheduled commercial banks, which includes minimum Tier I capital of 7.5%.
Q.70Medium
Which of the following accurately describes a Statutory Liquidity Ratio (SLR)?
Answer: B
SLR is the percentage of deposits that banks must maintain in prescribed liquid assets such as government securities and treasury bills.
Q.71Medium
What is the current SLR requirement as per RBI guidelines (2024)?
Answer: B
As per RBI's current guidelines, the Statutory Liquidity Ratio is fixed at 18% of net demand and time liabilities.
Q.72Medium
What is the purpose of the Pradhan Mantri Mudra Yojana (PMMY)?
Answer: B
PMMY aims to promote micro and small enterprises by providing collateral-free loans up to 10 lakhs for business activities.
Q.73Medium
What is the maximum tenure for a fixed deposit in Indian banks?
Answer: D
Indian banks can accept fixed deposits for any tenure as per the individual bank's policies, with no regulatory upper limit.
Q.74Medium
Which of the following is NOT a part of RBI's monetary policy transmission mechanism?
Answer: D
GST is a fiscal policy tool controlled by the GST Council, not a monetary policy tool of RBI. Repo, Reverse Repo, and SLR are RBI instruments.
Q.75Medium
What is the current repo rate as per RBI's latest monetary policy (2024)?
Answer: B
As of 2024, RBI's repo rate is maintained at 6.5% as per the latest monetary policy decision by the Monetary Policy Committee.
Q.76Medium
What does SWIFT code in banking stand for?
Answer: A
SWIFT is a global standard for secure international fund transfers and messaging between banks worldwide.
Q.77Medium
A customer's bank account becomes inoperative if no transaction occurs for how long?
Answer: B
As per RBI guidelines, a savings or current account becomes 'inoperative' if there is no transaction for 12 consecutive months.
Q.78Medium
Which of the following correctly defines 'Bancassurance'?
Answer: B
Bancassurance is the delivery and distribution of insurance products through banking channels to customers.
Q.79Medium
What is the current statutory liquidity ratio (SLR) requirement set by RBI for banks?
Answer: B
As per RBI guidelines, banks must maintain a minimum SLR of 18% of their net demand and time liabilities.
Q.80Medium
Which RBI framework regulates digital lending operations in India?
Answer: B
RBI issued Guidelines on Digital Lending Operations in 2023 to regulate fintech lending platforms and digital lenders.
