What is the primary function of the Insolvency and Bankruptcy Code (IBC), 2016?
Answer: B
IBC, 2016 provides a time-bound resolution process for insolvent debtors and companies, aimed at maximizing asset value and protecting creditor interests.
Q.102Medium
Which international organization sets global standards for banking supervision and capital adequacy?
Answer: C
The Basel Committee on Banking Supervision sets international standards for bank regulation and capital adequacy through Basel I, II, and III frameworks.
Q.103Medium
What does CLR (Cash Reserve Ratio) mandate banks to maintain?
Answer: A
CRR requires banks to maintain a certain percentage of their demand and time liabilities as cash reserves with the RBI, currently at 4.5% (as of 2024).
Q.104Medium
Which regulation requires banks to maintain a minimum Statutory Liquidity Ratio (SLR)?
Answer: B
Section 24 of the RBI Act, 1934 mandates that banks maintain a minimum SLR of not less than 18% of their net demand and time liabilities (NDTL).
Q.105Medium
What is the concept of 'Repo' in banking and financial markets?
Answer: B
Repo (Repurchase Agreement) is a short-term borrowing mechanism where securities are sold with an agreement to repurchase them at a higher price on a specified date.
Advertisement
Q.106Medium
What is the current Reverse Repo Rate as per the latest RBI monetary policy (2024-2025)?
Answer: A
The Reverse Repo Rate is typically 25-50 basis points below the Policy Repo Rate. Check latest RBI announcements for exact current rate.
Q.107Medium
Under which Act does the RBI regulate the functioning of payment systems in India?
Answer: B
The Payment and Settlement Systems Act, 2007 grants RBI the authority to regulate and oversee payment systems in India.
Q.108Medium
Which of the following best describes 'Liquidity Coverage Ratio (LCR)'?
Answer: B
LCR is a Basel III requirement ensuring banks maintain sufficient high-quality liquid assets to survive a 30-day liquidity stress scenario.
Q.109Medium
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.110Medium
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.111Medium
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.112Medium
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.113Medium
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.
Q.114Medium
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.115Medium
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.116Medium
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.117Medium
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.118Medium
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.119Medium
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.120Medium
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.
