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.182Medium
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.183Hard
Under the RBI's Liquidity Coverage Ratio (LCR) requirement, what percentage of high-quality liquid assets must banks maintain?
Answer: D
As per Basel III, the LCR requirement mandates that banks maintain high-quality liquid assets at least equal to 100% of their net cash outflows over 30 days under stress scenarios.
Q.184Hard
What does the 'Net Interest Margin (NIM)' indicate in a bank's financial analysis?
Answer: A
NIM is calculated as (Interest Income - Interest Expenses) / Average Earning Assets. It measures the bank's core profitability from lending and borrowing operations, crucial for assessing operational efficiency.
Q.185Medium
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.
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Q.186Easy
Which of the following is NOT a component of Broad Money (M3) in India?
Answer: D
M3 includes currency, demand deposits, and time deposits with banks. Cryptocurrencies are not included in the official money supply measurement by RBI.
Q.187Easy
The RBI's Repo Rate as of 2024-2025 is maintained at which level by the Monetary Policy Committee?
Answer: D
As per the latest RBI Monetary Policy (2024), the Repo Rate has been maintained at 6.5% with a focus on managing inflation while supporting growth.
Q.188Easy
Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the maximum life insurance cover provided to account holders?
Answer: C
PMJDY provides accidental death insurance cover of Rs. 2 lakhs (Rs. 200,000) to all beneficiaries who open accounts under the scheme.
Q.189Medium
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.190Easy
What is the primary objective of the Basel Accords framework adopted by Indian banks?
Answer: B
Basel Accords (I, II, III) aim to strengthen the regulation, supervision, and risk management of banks to ensure financial stability.
Q.191Medium
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.192Medium
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.
Q.193Easy
What is the current CRR (Cash Reserve Ratio) maintained by Scheduled Commercial Banks with RBI (2024-2025)?
Answer: C
The Cash Reserve Ratio is maintained at 4.5% of Net Demand and Time Liabilities (NDTL) as per RBI's current monetary policy stance.
Q.194Medium
Which regulatory framework ensures that banks maintain adequate capital buffers above minimum requirements?
Answer: B
Basel III introduced the Capital Conservation Buffer (2.5%) and Countercyclical Buffer to ensure banks maintain capital above minimum levels during good times.
Q.195Medium
The RBI's 'Insolvency Resolution and Debt Restructuring (IRDR) Framework' primarily focuses on which aspect?
Answer: B
The IRDR Framework provides a structured approach for banks to resolve stressed assets and restructure debts to promote financial stability.
Q.196Medium
Which of the following is a key feature of Unified Payments Interface (UPI) 2.0 launched in 2024?
Answer: A
UPI 2.0 introduced features like offline transaction capability and voice-enabled payments to enhance accessibility and user experience.
Q.197Hard
Under the RBI's directive, what is the maximum tenure for which a bank can provide a Masala Bond?
Answer: D
Masala Bonds are rupee-denominated bonds issued overseas with no fixed maximum tenure restriction, governed by FEMA guidelines.
Q.198Hard
As per the latest RBI guidelines on cyber security (2024), what is the minimum frequency for conducting security audits by banks?
Answer: A
RBI mandates that banks conduct comprehensive security audits at least annually, with more frequent assessments for critical systems.
Q.199Hard
Which Indian bank was accorded the status of a 'Domestic Systemically Important Bank' (D-SIB) in the latest RBI classification (2024)?
Answer: A
ICICI Bank, HDFC Bank, Axis Bank, and State Bank of India are classified as D-SIBs and required to maintain higher capital buffers due to systemic importance.
Q.200Medium
The RBI's 'Retail Direct Scheme' allows individual investors to directly purchase government securities. What is a key benefit of this scheme?
Answer: A
The Retail Direct Scheme enables individuals to open accounts with RBI and purchase government securities directly, reducing intermediation costs.
