What is the minimum Capital Adequacy Ratio (CAR) required for Scheduled Commercial Banks under Basel III framework?
Answer: C
Under Basel III, the minimum CAR for Scheduled Commercial Banks is 11.5%, comprising 9.5% for common equity and 1% for additional tier-1 capital.
Q.82Medium
Which payment system allows instant transfer of funds between bank accounts?
Answer: B
RTGS enables real-time settlement of fund transfers, typically for high-value transactions above Rs. 2 lakhs.
Q.83Medium
What is the primary function of the Clearing Corporation of India Limited (CCIL)?
Answer: B
CCIL acts as a central counterparty (CCP) for trades in money markets and government securities, reducing counterparty risk.
Q.84Medium
Which RBI scheme targets financial inclusion through digital channels?
Answer: C
BHIM AEPS enables cardless, cashless transactions using Aadhaar biometrics, promoting financial inclusion in rural areas.
Q.85Medium
What is the current Cash Reserve Ratio (CRR) as per RBI's latest monetary policy stance (2024)?
Answer: B
The CRR is maintained at 4.5% of banks' Net Demand and Time Liabilities (NDTL) as per recent RBI policy guidelines.
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Q.86Medium
Which Indian banks were recently merged under the Bank Consolidation Scheme?
Answer: C
India undertook significant bank consolidation in 2019: Dena and Vijaya banks merged into BoB; PNB merged with OBC and UBI.
Q.87Medium
What is the primary purpose of the Integrated Ombudsman Scheme 2021?
Answer: B
The Integrated Ombudsman Scheme 2021 provides a mechanism for customers to file complaints and seek redressal against banking services.
Q.88Medium
What does the Basel III framework primarily focus on?
Answer: B
Basel III is an international regulatory framework that aims to strengthen bank capital adequacy, stress testing, and market liquidity risk. It was developed post-2008 financial crisis to prevent systemic risks.
Q.89Medium
Under the RBI's regulatory framework, what is the minimum Statutory Liquidity Ratio (SLR) that banks must maintain?
Answer: B
As per RBI guidelines (2024-2025), the statutory minimum SLR is 18% of net demand and time liabilities. This ensures banks maintain sufficient liquid assets.
Q.90Medium
Which of the following best describes a 'repo transaction' in banking?
Answer: A
A repo (repurchase agreement) is a short-term borrowing instrument where a seller sells securities with an agreement to repurchase them at a higher price. It's a key liquidity management tool for banks.
Q.91Medium
Which RBI initiative aims to facilitate real-time, 724 interbank fund transfers?
Answer: C
UPI allows real-time, 724 peer-to-peer and peer-to-merchant fund transfers. While RTGS is real-time for bulk transfers and NEFT/IMPS have specific timings, UPI provides true round-the-clock service.
Q.92Medium
What is the primary feature of a 'Floating Rate Savings Account' offered by banks?
Answer: B
Floating rate accounts have interest rates that fluctuate based on changes in the RBI's benchmark rates or market conditions, unlike fixed-rate accounts where the rate remains constant.
Q.93Medium
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.94Medium
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.95Medium
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.96Medium
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.97Medium
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.
Q.98Medium
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.99Medium
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.100Medium
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.
